Cabinet approves Expanding the mandate of Government e Marketplace – Special Purpose Vehicle (GeM – SPV) to allow procurement by Cooperatives as Buyers

What is the News?

The Union Cabinet has given its approval for expanding the mandate of Government e-Marketplace(GeM) to allow procurement by Cooperatives as buyers on GeM.

What is the Government e-Marketplace(GeM)?

Launched by: Ministry of Commerce and Industry in 2016.

Aim: To create an open and transparent procurement platform for Government buyers. 

At present, the platform is open for procurement by all government buyers: central and state ministries, departments, public sector enterprises, autonomous institutions, local bodies, etc. 

However, GeM is not available for use by private sector buyers. But suppliers (sellers) can be from across all segments such as government or private.

What is the recent decision taken by the Government? 

The government has now allowed cooperatives also to sell products on the Government e-Marketplace(GeM) platform.

The cooperatives may however be charged a transaction fee to cover the incremental costs.

What is the significance of this decision?

Allowing Cooperative Societies to register on GeM as Buyers would help Cooperatives in getting competitive prices through an open and transparent process.

Source: The post is based on the article “Cabinet approves Expanding the mandate of Government e Marketplace – Special Purpose Vehicle (GeM – SPV) to allow procurement by Cooperatives as Buyers” published in PIB on 1st June 2022.