PSUs should register first in the GeM for the benefits to accrue to small entrepreneurs: PIA President
Government e-marketplace (GeM), is an initiative by the Government to put all buyer Government departments and intending sellers on an e-platform. GeM has provision of the buyers uploading their demand and invite select suppliers to quote on reverse auction mode. The DC-MSME also announced that the buyers’ government departments will be able to identify MSME suppliers in the GeM so that they can give preference to purchase from MSMEs. It has also been clarified by official sources that the Government will take due care that only genuine MSME manufacturers are registered in the GeM.
Welcoming the announcement made to give preference to products preserved for exclusive purchase from MSMEs, Sri R. Krishnamurthy, President, PIA, however pointed out that the biggest buyer from MSMEs, the public sector undertakings are not yet registered on the GeM portal.
“This will defeat the very purpose of transparency and the stated policy of encouraging MSME participation,” he remarked and voiced the grievances of many entrepreneurs in Peenya Industrial Area that many common items like distribution transformers, welding electrodes are not available on the portal and requested for inclusion of such items. Also, more vigorous efforts are needed to enforce 20% procurement from micro and small enterprises by all Government Departments and Undertakings, he said.
According to Ms. Radha Chauhan, DG, GeM, an escrow fund is being created to ensure timely payment to the supplier under the GeM platform. She also mentioned that GeM will partner with vendor certification authorities to rate the vendors and put the rating against the suppliers to assist the buyers in identifying quality suppliers.