The Finance Ministry gave its green light to creation of ‘Government e-Marketplace‘ for online purchase of commonly used goods and services by various central government ministries and departments. The Department of Expenditure has added a new provision in the General Financial Rules (GFR) on the request of Commerce Department for creation of a one-stop GeM by Directorate General Supply and Disposal (DGS&D).

• The DGS&D will host an online Government e-Marketplace (GeM) for common use goods and services.
• The GeM would be dynamic, self-sustaining and user-friendly.
• DGS&D will ensure adequate publicity, including periodic advertisements in newspapers of the GeM and the items to be procured through GeM, for prospective suppliers.
• As per the guidelines, the procuring authorities will satisfy themselves that the price of the selected offer is reasonable.
• The GeM may be utilised by government buyers (at their option) for direct online purchases.
• Purchases up to Rs 50,000 can be made from any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period.
• Above Rs 50,000, the criterion of the lowest price among available suppliers on the GeM has to be followed.
• The GeM will also provide tools for online bidding and online reverse auction which can be used by the purchaser.