UP- First State to Fully Adopt GeM Platform

• 12 Dec 2024

Why in News? 

Recently, Uttar Pradesh has become the first state in India to fully integrate the Government e-Marketplace (GeM) platform, enhancing transparency and efficiency in public procurement.  

• This move is projected to save Rs 2,000 crore annually while fostering fair practices and empowering small businesses. 

 Key Points 

• Prior tendering systems in Uttar Pradesh lacked uniformity and were vulnerable to misuse. 
• GeM resolves these issues by enforcing standardized rules, thereby reducing the chances of violations or loopholes. 
• The state government aims to scale up GeM usage across all state departments, ensuring compliance and enhancing accountability. 
• Demonstrated Success: 
  • The Uttar Pradesh Building and Other Construction Workers Welfare Board used GeM to procure materials for 18 Atal Residential Schools. 
    • These schools, serving students from Class 6 to intermediate level, now offer exemplary learning environments, including support for children orphaned during the Covid-19 pandemic. 
• Policy Reforms and Compliance: 
  • Strict guidelines: Policies prohibit practices such as offline contracts, price discovery bids, quantity-based bids, and unnecessary requests for samples during bid evaluations. 
    • All state departments must procure at least 25% of their annual goods and services through GeM, with penalties for non-compliance. 
  • Support for Small Enterprises: Relaxed tender eligibility criteria (e.g., turnover and past performance) create opportunities for micro and small enterprises (MSEs). 
  • Worker Welfare Provisions: Policies mandate minimum wages, Employee Provident Fund (EPF), and Employee State Insurance (ESI) benefits for outsourced employees. 
    • Service providers cannot arbitrarily replace outsourced employees after hiring, ensuring job stability and fairness. 
  • Anti-Collusion Measures: Collusion or bid manipulation incurs severe penalties, with provisions for reporting cases to the GeM team. 
  • Complaint Redressal Mechanism: High-level committees, chaired by the Uttar Pradesh Chief Secretary, review compliance-related grievances submitted via dedicated emails. 
• Alignment with National Initiatives: 
  • GeM adoption promotes the vision of "Digital India" by enhancing transparency and accountability in governance. 
  • The platform supports local suppliers and fosters fair competition, aligning with the "Make in India" initiative. 

 Government e-Marketplace (GeM) Platform 

• GeM facilitates online procurement of common use Goods & Services required by various Government Departments / Organisations / PSUs. 
  • The initiative was launched in August 2016, by the Ministry of Commerce and Industry, Government of India. 
  • The current version of GeM, i.e., GeM 3.0 was launched on January 26, 2018. 
• It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users, achieve the best value for their money and aims to enhance transparency, efficiency and speed in public procurement.