GeM PORTAL

GS Paper III Indian Economy

Context- Coal Ministry bags “Best Engagement” Award for Procurement through GeM Portal.

More about the news:

The Ministry of Commerce has instituted the awards for excellence in procurement through the GeM portal.
The Ministry of Coal has been awarded in“Best Engagement” category, Coal India Limited (CIL) has been awarded“Rising Star” and NLC India Limited has been awarded in the “TimelyPayments” category.

About GeM portal

GeM is a one-stop National Public Procurement Portal to make it easier for various Central and State Government Departments, Organisations, and Public Sector Undertakings (PSUs) to purchase common goods and services online.
Launched: It was launched in 2016 to increase efficiency and transparency in the procurement process for the government.
Nodal ministry: Ministry of Commerce and Industry.
Process: It offers reverse e-auction and e-bidding tools to help users get the most for their money.
Compulsory procurement:For the goods and services offered on GeM, procurement by Ministries and Central Public Sector Enterprises (CPSEs) is mandatory.

Let’s Define:

E-bidding refers to the process of conducting bidding or auction activities online through the use of digital platforms and technology.
Reverse auctions: It is a type of auction in which sellers bid for the prices at which they are willing to sell their goods and services. It is the opposite of a regular auction, where a seller puts up an item and buyers place bids until the close of the auction, at which time the item goes to the highest bidder

Significance of GeM portal:

Transparent and Economical Procurement: GeM makes it possible for government organizations to quickly, efficiently, transparently, and economically procure goods and services they need to combat the Covid-19 pandemic.
Inclusive marketplace: The Marketplace has made it easier for small local vendors to participate in public procurement while effectively implementing the government’s “Make in India” and MSME Purchase Preference Policies.
Self-sufficiency: GeM has been promoting the AtmaNirbhar Bharat policy, which was instituted in the wake of the Covid-19 Pandemic and is intended to promote independence and small Indian manufacturers.
Several Entities in One Location: The online market can combine requests from multiple entities for similar products, and build on the preferences provided by State governments to small enterprises.