The GeM (greatest online commercial portal) due to some changes in GeM it provides benefits to the sellers and the industries under it. With the use of GeM, it is useful or helps to save or give the best of the services at the time of procurement. In this article, we are going to talk about some benefits of GeM to the Government, sellers and the Indian industry and economy. As we all know about the GeM that it has transparency, Efficiency, safe and secure, etc.
Benefits of GeM the Government, Sellers and the Indian industry and economy
1. Transparency:
GEM transparency provides benefits to the government and vendors the human interface in GeM seller registration, order placement, and payment processing on GeM has been largely eliminated. The GeM is an open platform for traders who wish to do business with the government and GeM does not impede the entry of such bonded suppliers in any way. For payment, SMS and e-mail notifications are sent periodically to both the buyers of the organization, officials and sellers, his / her head at every step. Online, cashless and time-bound payment facility is provided on GeM through integration with PFMS and State Bank Multi Option System (SBMOPS); here web- for the payment systems of Railways, Defense major public sector Undertakings and State Governments. The integration of services is being enhanced. Mandatory and uninterrupted processes by Om, issued by the Department of Expenditure, and online time-bound payments also assure sellers and reduce their ‘administrative’ costs involved in chasing executives for timely payments.
2. Efficiency
Direct acquisition on GeM is often done to method the complete method in minutes, /time, with end-to-end and on-line tools to assess logic. GeM Registration is compulsory for participation. The bid / RA facility on GeM is that the clearest and economical as compared to the e-procurement system for high-value purchases within the government sector to form a bid / RA to the customer, there’s no got to produce their technical specifications as they’re standardized on GeM. The bid / RA are often finalized at intervals a minimum of seven days by creating it in minutes. All eligible suppliers square measure notified of the bid / RA through e-mail and SMS and not, therefore, new suppliers are also a square measure to notified once they register themselves on-line on GeM and are ‘eligible’ by the system square measure determined as. Therefore, the GeM portal ensures bid / Ra competition, fair play, speed, and potency and results in truthful worth discovery. The reasonableness of the rates on major e-commerce portals also can be confirmed through on-line comparison with the value. Very soon, GeM can begin receiving feeds from varied public acquisition portals to confirm that an equivalent item isn’t bought by another administrative unit at a lower rate from an equivalent or completely different trafficker. The chance of that worth is going to be more reinforced by integration with GSTN and ICEGATE which can change the customer to establish the trade goods worth once it exits the manufactory gate or once it’s foreign into the country. This may create GeM a really powerful tool for coming up with and shopping for into the hands of state organizations.
3. Safe and secure
The GeM is a completely secure platform for Governments, Sellers, etc. Every single document on the GeM Area unit is e-signed by patrons and vendors in multiple stages. The ancestors of the suppliers’ field unit verified MCA21, on-line and mechanically, through the Aadhaar and PAN databases. Besides, SEBI has used credit rating agencies for third party analysis of suppliers. This may reinforce any diligence related to the veracity of the supplier’s willingness to trade on GeM. For high-value bids / RA on GeM, associate degree e-bank guarantee is being offered additionally.
The GeM can be a better existing system to ensure prudent conduct by suppliers, which bank a lot of money instruments (EMD only in case of tender for large purchases). Within the current system, there are one unit zero checks on suppliers’ antecedents for low price purchases (up to Rs 1 lakh), whose accumulated prices are incredibly huge in government organizations. GeM counts for 100% on-line verification of all vendors
Know all about GST Registration Online for Business
4. Ability to support Make in India
GeM provides advantages to vendors and therefore the government and any kind of business. As a result of GeM will support creation in the Republic of India. GeM has filters for the choice of things, that filters most well-liked Market Access (PMA) and square measure factory-made by little Scale Industries (SSI), it simply creating for presidency patrons to manufacture in Republic of India and SSDs can provide you permit to shop with the product. For simply accessible MIS can permits directors and policymakers to simply and effectively implement government rules on PMA and SSI sourcing. Following the launch of GEM, it’s been ascertained that several major pc makers have placed PMA compliant products on GMA.
5. Savings to the Government
As a result of the transparency, efficiency, and ease of use of the GeM portal, GeM prices have dropped significantly compared to tenders, rate contracts, and direct purchase rates. The average value on GeM is at least 15–20% and in some cases less than 56%. And also GeM is doing aggregation of Demand for goods to be purchased by various central / state government departments. Demand aggregation is expected to push prices further through the standardization of economies of scale and economies. The annual savings from demand aggregation for the most common use of goods and services are estimated at Rs 40,000 Crore per year. If its logical conclusion comes, GeM will eventually emerge as a national public procurement portal, taking into account global best practice; Most OECD countries, such as the United States, South Korea, Britain, Singapore, etc., have the same NPPP and, as a result, have an annual savings of billions of dollars, in addition to giving an impetus to the domestic industry for public procurement.
