The authorities e-marketplace (GeM) will launch contemporary initiatives to woo states and the public-sector items (PSUs) below them to greater than double their purchases of products and companies by means of the portal to breach the Rs 60,000-crore mark in FY23, GeM chief govt PK Singh informed FE.
State governments and their PSUs purchased items and companies value Rs 31,175 crore by means of GeM in FY22, having accounted for roughly a 3rd of the overall procurements of greater than Rs 1 trillion on the portal.
“While the procurement by states and their PSUs hit a record in FY22, there is still a huge scope for them to go further. Central government departments and CPSEs are already procuring through GeM in a big way,” Singh stated.
GeM officers have drawn up an inventory of 11 key states for focused interventions in FY23 to encourage them to ramp up their purchases by means of the portal. These states are Maharashtra, Rajasthan, Haryana, Tamil Nadu, Assam, Chhattisgrah, Uttar Pradesh, Bihar, Madhya Pradesh, Karnataka and Gujarat. A advisor will likely be appointed to assist out six of them and GeM officers will help the opposite 5 which will want hand-holding, Singh stated.
Some state governments are reluctant to buy by way of GeM in an enormous method as a result of they are saying their native suppliers can probably lose out to raised rivals from different states. However, they need to additionally realise that a lot of their sellers are additionally getting the alternatives to provide to their neighbouring states by means of GeM, Singh stated.
Currently, whereas all states are tapping the GeM portal, their ranges of purchases differ sharply. Uttar Pradesh led the pack of states, with purchases of Rs 11,275 crore in FY22, or greater than a 3rd of the overall procurement by all states and associated entities. This was adopted by Gujarat (procurement of Rs 3,487 crore), Maharashtra (Rs 2,259 crore), Madhya Pradesh (Rs 1,968 crore), Bihar (Rs 1,494 crore) and Odisha (Rs 1,455 crore).
Few states should not shopping for a lot as a result of procurement by states by means of the GeM portal is voluntary, whereas it has been made necessary for central authorities ministries/departments and PSUs below them. More importantly, as trade executives have typically stated, states that search to undertake higher transparency in its public procurement will select the portal for transactions.
Total procurement by means of the GeM portal surged a document Rs 1 trillion in FY22, having a recorded a 160% leap over the earlier 12 months. In truth, earlier than the most recent feat, procurement by means of the portal had breached the Rs 1-trillion mark in as many as four-and-a-half years. Singh exuded confidence procurement by way of GeM will exceed Rs 1.5 trillion within the present fiscal.
The GeM portal was launched in August 2016, because the Centre wished to enhance transparency in purchases of assorted items and companies by all of the central authorities ministries, departments and public-sector corporations and state governments, other than offering a new-age platform for official procurement. Sellers vary from small enterprise to giant firms.
There are not any Chinese merchandise bought on the portal, Singh added. Procurement by central public sector enterprises alone jumped many folds to about Rs 43,000 crore in FY22. The GeM portal presents a variety of merchandise–from workplace stationery and autos to computer systems and workplace furnishings.
Services like transportation, logistics and waste administration are additionally supplied by means of sellers on the portal.
Source: www.financialexpress.com”