Online marketplace for government buyers including departments, organisations and PSUs -- Government e-Marketplace (Gem) has helped five central ministries save Rs 24.84 crore for the month of October 2019.
Online marketplace for government buyers including departments, organisations and PSUs — Government e-Marketplace (Gem) has helped five central ministries save Rs 24.84 crore for the month of October 2019. Nearly 3 lakh sellers including 60,000 micro and small sellers (MSE) on the portal saved Rs 16.47 crore for Ministry of Electronics and Information Technology followed by Rs 7.74 crore for Ministry of Coal, savings for Ministry of Tourism stood at Rs 46.19 lakh, Rs 14.29 lakh for Ministry of New and Renewable Energy while Ministry of Drinking Water and Sanitation was able to save Rs 2.80 lakh, GeM tweeted on Tuesday. Importantly, the portal had on Monday tweeted that government buyers have achieved an average savings of 32.79 per cent through transactions with MSMEs over the platform till October 2019.
Launched in August 2016 to boost transparency and efficiency in buying of goods and services by government buyers from sellers across India — GeM portal will compete directly with Amazon and Flipkart if the government opens it up for private buyers. The MSE sellers on the platform have a share of more than 50 per cent of the overall transaction value worth Rs 38,653 crore. The total number of buyers are 40,364 offering nearly 15 lakh products and 19,464 services. So far, the number of orders placed on GeM stood at more than 27 lakh.
GeM had also launched Startup Runway initiative in February this year for DPIIT-registered startups to list and sell their products and services to government organisations, departments, and PSUs. Currently, it has 1,528 startups listed selling 12,915 products. The portal saw a four-fold increase in its total transaction value and doubling of seller count in FY19. 42 per cent of the transactions (Rs 23,000 crore in GMV) by volume were done with MSME sellers on the platform. GeM has so far signed MoUs with more than 15 banks for payment integration (state GeM pool account (SGPA), electronic performance bank guarantee (ePBG), electronic earnest money deposit (eEMD)) for cashless, and paperless payment system.