Ease of Doing Business for MSMEs: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday permitted the inclusion of cooperatives as consumers on the general public procurement market Government eMarketplace (Gem). Launched in August 2016, GeM thus far allowed procurement of products and providers by authorities departments, ministries, and public sector models (PSUs) from MSMEs and others enterprises. “This will bring transparency into cooperatives, help them benefit from the GeM marketplace, and give GeM sellers access to a bigger base of buyers,” Information and Broadcasting Minister Anurag Thakur informed reporters in a Cabinet briefing. Currentlly, GeM is just not accessible for personal sector consumers whereas sellers might be from throughout all segments together with authorities or non-public.
The Cabinet famous that validated listing of cooperatives to be onboarded on GeM for pilot in addition to subsequent scale up might be determined by Ministry of Cooperation in session with GeM Special Purpose Vehicle (SPV). This will make sure that technical capability and logistics requirement of the GeM system are taken under consideration whereas deciding the tempo of on boarding of Cooperative as consumers on GeM, stated a Cabinet assertion.
The market will provide a devoted onboarding course of for cooperatives together with the technical infrastructure to assist further customers on current portal, in addition to present help to cooperatives for onboarding and transaction journeys, through accessible contact facilities, in-field coaching and different assist providers, it stated. However, the general tempo of roll-out could be determined by Ministry of Cooperation whereas the milestones and goal dates might be aligned mutually between Ministry of Cooperation and GeM.
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There are over 8.54 lakh registered cooperatives with 27 crore members within the nation that will now be eligible to onboard the GeM platform. However, the portal would possibly want “some investments in additional technology infrastructure, and additional training and support resources. To cover for these incremental costs, GeM may charge an appropriate transaction fee from cooperatives, to be decided in mutual consultation with the Ministry of Cooperation. Such charges shall not be more than the charges which GeM would charge to other Government buyers,” the Cabinet famous.
During FY19-FY22 interval, the gross merchandise worth (GMV) of the portal jumped over 84.5 per cent CAGR and crossed Rs 1 lakh crore in FY22 alone, which was greater than the cumulative GMV until FY21. “In the past four years, Rs 6,220 crore procurement was made in FY18 that grew to Rs 1,06,000 crore in FY22. Similarly, the cumulative buyer count also jumped from 21,254 to 59,130 while cumulative seller count increased from 86,835 to more than 40,02,000 during FY18-FY22 period,” stated Thakur.
Source: www.financialexpress.com”