In this blog post, we’ll delve into the essence of MSE Purchase Preference on GeM, its objectives, and how it contributes to fostering a more inclusive and vibrant business environment.

What is MSE?​

MSE stands for Micro and Small Enterprises. The term “Micro and Small Enterprises” is commonly used in the context of business classifications and government policies related to small-scale industries.

The classification of Micro, Small, and Medium Enterprises (MSMEs) is based on investment in plant and machinery or equipment and turnover. These criteria are as follows:

Source: https://msme.gov.in/know-about-msme

How to register for MSE?​

Any person who wants to register for Micro Small Enterprises may file Udyam Registration online in the Udyam Registration portal, based on self-declaration with no requirement to upload documents, papers, certificates or proof. Registration process is Free of Cost. You can only register through the official website of Udyam Registration Govt of India.

Apply Here

Public Procurement Policy for MSEs​

Public Procurement Policy for MSEs Order, 2018 has been notified under section 11 of MSMED Act, 2006. Public Procurement Policy for Micro and Small Enterprises (MSE) refers to the preferential treatment given to MSEs (Micro and Small Enterprises) in the procurement processes of government entities.

This preferential treatment is aimed at promoting and supporting the growth of MSEs by providing them with certain advantages during the procurement process.

1. No tender fee
2. EMD exemption
3. Relaxation from prior experience
4. Relaxation in prior turnover
5. Purchase preference

Key features​

Key features of public procurement for MSEs includes:

1. 25% share of the total annual procurement by Central Government Ministries / Departments / Public Sector Undertakings is to be made from MSEs.
2. Out of the 25% target of annual procurement from MSEs (Not in the specific tender), a sub-target of 4% (within the 25%) of annual procurement from MSEs is earmarked for procurement from MSEs owned by Scheduled Caste (SC) / Scheduled Tribe (ST) entrepreneurs and 3% (within the 25%) of annual procurement from MSEs is earmarked for procurement from MSEs owned by women entrepreneur
3. 358 items are reserved for exclusive procurement from MSEs.¹

Eligibility Criteria for purchase preference on GeM​

To avail of Purchase Preference on GeM, bidders must adhere to specific eligibility criteria:

1. Goods: The bidder must be a manufacturer of the offered goods or primary products in case of a bunch bid.
2. Services: The bidder must be a service provider for the offered service.
3. OEM or Service Provider: Bidder or Service provider must have registered with the organization as mentioned in the policy or have an Udyam Registration Certificate.

MSE purchase preference on GeM​

If the buyer has selected the MSE purchase preference then purchase preference will be given to MSEs as defined in Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 dated 23.03.2012.

Check if a GeM bid has MSE Purchase Preference?​

In order to check the purchase preference for MSE in the GeM Bid, you can download the GeM Bid document and look for the “MSE Purchase Preference” option. If the buyer has selected to give purchase preference to MSEs, you can see “Yes” as shown in the below image.

MSE details on GeM profile​

Sellers need to update their MSE details in their GeM seller profile. You can find detailed steps in this guide. https://www.edafter.com/docs/seller-profile/business-profile/msme

Bid participation as MSE​

At the time of bid or RA participation, sellers must select and upload MSE category certificate in order to avail of purchase preference in that particular bid or RA.

Matching L-1 Price​

If the Lowest Bidder (L-1) is not an MSE, and MSE sellers have quoted prices within L-1 plus a 15% margin, these MSE sellers are given the opportunity to match the L-1 price. Sellers are requested to navigate to this post in order to learn how to accept Price Match Accept requests on the GeM Portal.

Contract allocation​

Contracts will be awarded to MSE sellers for a minimum of 25% percentage (as determined by the buyer) of the total quantity, creating a balanced approach that considers both the L-1 bidder and MSE sellers.

The Buyer can split the Bid with MSE Purchase Preference among maximum 5 MSE Sellers.

Top 5 MSE price offerings, within L1+15%, would be given the option to match L1 price. If eligible MSEs don’t accept the price match accept, then bid would be awarded to the remaining eligible MSEs who have matched their price with L1 offer.

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In this post, we dive into everything you need to know about the Government e-Marketplace (GeM) – from understanding what is GeM, how it works, its benefits, and I’ll even share some tips towards the end.

Before we delve into the specifics of GeM, it’s crucial to grasp the concept of public procurement.

Essentially, when our government needs any product or service, it issues a public notice, commonly known as a tender, to acquire them from the public sector. This process of acquiring goods or services is what we call public procurement.

Why does the Government Issue Tenders?​

The issuance of tenders by the government is rooted in the principles of fairness, transparency, and value for money.

Tenders ensure that public spending is conducted openly, allowing multiple suppliers to compete for government contracts. This process is governed by various regulations, including the General Financial Rules (GFR) 2017, the Delegation of Financial Powers Rules, 1978, and the Manual on Policies and Procedures for Purchase of Goods issued by the Ministry of Finance.

The objective is to ensure that taxpayers’ money is used efficiently, procuring the best possible goods and services at the most competitive prices.

How Public Procurement Works​

The public procurement process involves several steps, starting with the government publishing a tender. Interested sellers participate, and once the participation deadline passes, the government (buyer) evaluates the bids to determine eligibility. The contract is then awarded to the bidder offering the lowest rate.

However, this process wasn’t always as straightforward and transparent as it needed to be, which led to the introduction of the Government e-Marketplace (GeM).

What is GeM?​

Launched in 2016, GeM is an online portal for public procurement that any government buyer can use to procure products or services.

Its introduction aimed to enhance efficiency, transparency, and inclusiveness in the procurement process.

GeM functions as a one-stop shop for government buyers seeking common-use goods and services.

It operates on a simple and transparent online platform, accessible to both buyers and sellers.

The Indian government has even mandated purchases through GeM, adding it as Rule No 149 in the General Financial Rules.

Unique Features of GeM​

GeM boasts several unique features that set it apart from traditional procurement processes:

• E-Bidding and Reverse Auction: Allows for competitive pricing and transparency.
• Incident Management: Ensures quick resolution of issues and disputes.
• Payment Integration: Streamlines the payment process between buyers and sellers.
• Preferences for Make in India, MSE, and Startups: Promotes local businesses and innovation.

Benefits of GeM​

GeM plays a pivotal role in the Indian Public Procurement sector, offering numerous benefits to both sellers and buyers

For Government Buyers​

• Transparency: All bids and transactions are conducted online, which makes the process more transparent.
• Efficiency: The online platform streamlines the procurement process, making it faster and more efficient.
• Cost savings: GeM has helped government buyers to save money by getting the best possible prices for goods and services.

For Sellers​

• Access to a large market: GeM provides sellers with access to a large market of government buyers.
• Level playing field: GeM provides a level playing field for all sellers, regardless of their size or location.
• Easy payment: Sellers are paid directly by the government, which eliminates the risk of non-payment.

How GeM Works​

GeM simplifies the procurement process, making it more accessible and efficient for both buyers and sellers. The platform requires registration, after which sellers can list their products or services, and buyers can publish their requirements. The process fosters a competitive environment that benefits all parties involved.

GeM Statistics​

GeM has had a significant impact on public procurement in India. In the past few years, GeM has:

1. Facilitated the procurement of goods and services worth over ₹1 lakh crore.
2. Registered over 1.5 lakh sellers on the platform.
3. Saved government buyers over ₹10,000 crore.

Read More

Success Tips for Sellers on GeM​

To succeed on GeM, sellers should:

• Identify High-demand Items: Focus on products with strong government demand.
• Regularly Update Inventory: To ensure listings remain active and visible.
• Participate in Bids and Reverse Auctions: To increase your chances of winning contracts.
• Comply with GeM’s Terms and Conditions: To maintain good standing on the platform.

Future Outlook of GeM​

The future of GeM looks promising, with plans to incorporate advanced technologies such as AI and ML to further enhance its efficiency and transparency.

The partnership with TCS to upgrade the platform underscores the government’s commitment to leveraging technology to improve public procurement.

Conclusion​

To sum it up, GeM is a game-changer in the Indian public procurement scene.

It’s like a one-stop-shop where the government meets businesses, making buying and selling as easy as pie.

With GeM, the whole procurement process has been turned on its head – it’s faster, clearer, and just better for everyone involved.

It’s a shining example of how digital tools can make government operations more nimble and open.

Looking ahead, GeM is all set to widen its horizons, bringing in more tech magic and opening doors for businesses of all sizes.

For anyone looking to get a piece of the government pie, getting the hang of GeM is like striking gold. It’s a chance to play in the big leagues, contributing to and reaping the rewards from India’s growth story.

In a nutshell, GeM isn’t just an online marketplace; it’s a revolution in how government procurement gets done. It’s making things fair play, giving every business, big or small, a fair shot at success.

Whether you’re on the lookout for government deals or looking to sell your goods and services, GeM is your golden ticket.

As we move forward, the success stories from GeM are set to become a beacon, showing us the way to a more streamlined, transparent, and inclusive future in public procurement.

It’s a win-win for the government and businesses alike, paving the way for a future where doing business with the government is no longer a headache but an opportunity ripe for the taking.

The post Government e Marketplace | Features, Benefits & Future Prospects first appeared on GeM Master Consultancy.

If you’re a business owner looking to expand your market and tap into government contracts, GeM is an excellent opportunity.

In this blog post, we’ll walk you through the entire process of becoming a successful seller on GeM, from registration to receiving payments.

Why Sell on GeM?​

Before diving into the steps, let’s explore why selling on GeM is beneficial:

• Access to a Large Market: GeM connects you with numerous government buyers.
• Transparent Process: The platform ensures a transparent procurement process.
• Timely Payments: Government payments are usually timely, reducing financial risks.
• Ease of Doing Business: The online platform simplifies the procurement process.

Step 1: Registration​

The first step to selling on GeM is registration. Here’s how to get started:

Documents Required​

Depending on your business or organization type, you’ll need specific documents for registration. Ensure you have:

• User’s Aadhaar Number or Personal PAN
• Phone number linked to Aadhaar or PAN

Seller Account Creation​

1. Visit the GeM Website: Go to gem.gov.in
2. Sign Up: Click on “Sign Up” and select “Seller/Service Provider.”
3. Business Type: Choose your business type and proceed.
4. Terms and Conditions: Accept the terms and conditions to move forward.
5. Business Information: Fill in your business details.
6. Aadhaar/PAN Verification: Verify your details using Aadhaar or PAN.
7. Create User ID and Password: Set up your User ID and password.

Profile Completion​

Completing your profile is mandatory to start selling on GeM. You will need to provide additional documents and details.

1. Access My Profile: Go to the “My Profile” section on GeM.
2. Fill in Details: Complete the following sections:
   • Business Profile
   • My Action
   • Vendor Assessment
   • Seller Panel
   • Account Setting
   • User Management

Step 2: Cataloging​

Once your profile is complete, you can add your products or services to the GeM catalog. This step is crucial for visibility and sales.

Adding Products/Services

1. Login: Log into your GeM seller account.
2. Catalog Option: Click on the catalog option.
3. Choose Category: Select “Products” or “Services.”
4. Add New Offering: Click on “Add New Offering.”
5. Category Search: Find the right category for your product/service.
6. Enter Specifications: Provide detailed technical specifications.
7. Upload Documents: Upload supporting documents.
8. Submit for Approval: Submit your catalog for approval.

Step 3: Bidding​

With your products or services listed, you can now participate in bids to secure contracts.

Participating in Bids

1. Notifications: Receive email and SMS notifications for new bid publications related to your category.
2. Search Bids: You can also search for bids directly on the GeM website.
3. Analyze Bid: Carefully analyze the bid requirements and prepare your documents accordingly.
4. Bid Participation: Click on the “Participate” button for the desired bid.
5. Select Catalog: Choose your catalog for the bid.
6. Quote Price: Enter the price you wish to quote.
7. Upload Documents: Upload all required documents.
8. Submit Bid: Verify your participation and submit the bid.

Step 4: Order Fulfillment​

If you win a bid, you will receive an order confirmation via email and phone. Now it’s time to fulfill the order.

Processing Orders

1. Order Confirmation: Check your GeM Seller profile for the order fulfillment tab.
2. Generate Invoice: Generate the invoice for the order.

Step 5: Payment​

After fulfilling the order, the last step is to ensure you receive payment.

Receiving Payments

1. Payment Timeline: Payments are usually processed within 15-20 days after dispatch.
2. Contact Buyer: If there is a delay, contact the buyer to initiate payment.
3. Raise Incident: If the buyer does not respond, raise an incident on GeM. The GeM admin will assist you in receiving your payment.

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Hon’ble Prime Minister of INDIA decided to set up a dedicated e-market for different goods & services procured by Government Organisations / Departments / PSUs on one platform.

Government e Marketplace (GeM), created in a record time of five months, facilitates online procurement of common use Goods & Services required by various Government Departments / Organisations / PSUs.

GeM aims to enhance transparency, efficiency and speed in public procurement. 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.

It offers various tools like change in product MRP, reverse e-auction, e-bidding, and demand aggregation to facilitate the government & sellers to provide product & service at the best of their ability.

The purchases through GeM by Government users have been authorised and made mandatory by Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017

Why Sell on GeM?

1. Access to National Public Procurement market.

All Central & State Government PSUs as potential Buyers.

2. No charges or fee for Registration on GeM portal
3. Fully online, paperless and contactless platform, ease of doing business.
4. One time registration for all government procurements
5. Special provisions and sections for start-ups, MSMEs and Emporium products
6. A list of prerequisites for the seller registration has been made available so that it becomes a guide to the seller during registration https://gem.gov.in/support/sellers/?lang=english
7. Simplified Brand application and brand approval process.
8. Add as many products you wish to supply as resellers or as OEM’s post approval of competent authority
9. Multiple invoice for single order for felicitating big orders
10. Easy process & access to participate in bids/reverse auction
11. Clock enabled Reverse Auction process to display remaining time for seller participation
12. Online grievance redressal mechanism for quick resolution for vendor’s grievances.
13. Reason for rejection of any request will be shown so the seller can comply accordingly
14. Seller friendly dashboard for monitoring supplies & payments.

The post INTRODUCTION TO GOVERNMENT E-MARKETPLACE (GEM) first appeared on GeM Master Consultancy.

Hon’ble Prime Minister of INDIA decided to set up a dedicated e-market for different goods & services procured by Government Organisations / Departments / PSUs on one platform.

Government e Marketplace (GeM), created in a record time of five months, facilitates online procurement of common use Goods & Services required by various Government Departments / Organisations / PSUs.

GeM aims to enhance transparency, efficiency and speed in public procurement. 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.

It offers various tools like change in product MRP, reverse e-auction, e-bidding, and demand aggregation to facilitate the government & sellers to provide product & service at the best of their ability.

The purchases through GeM by Government users have been authorised and made mandatory by Ministry of Finance by adding a new Rule No. 149 in the General Financial Rules, 2017

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The post Benefits For Seller And Buyer On GeM Registration first appeared on GeM Master Consultancy.

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