Cabinet permits procurement by cooperatives through GeM portal

The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday gave its approval for expanding the mandate of Government e-Marketplace (GeM) to allow procurement by cooperatives. 

The GeM was launched on August 9, 2016, by the Ministry of Commerce and Industry to create an open and transparent procurement platform for government buyers.  A Special Purpose Vehicle (SPV) by the name of Government e-Marketplace (GeM SPV) was set up as the National Public Procurement Portal on May 17, 2017.

At present, the platform is open for procurement by all government buyers: central and state ministries, departments, public sector enterprises, autonomous institutions, local bodies, etc. As per existing mandate, GeM is not available for use by private sector buyers. Suppliers (sellers) can be from across all segments: the government or private.

The government's move to expand the mandate of GeM to allow procurement by cooperatives will help over 8.54 lakh registered cooperatives and their 27 crore members as they would get products at competitive rates from the GeM portal.

"These cooperatives will be benefitted from this decision," said Information and Broadcasting Minister Anurag Thakur at a press interaction. 

The cooperative movement in India has grown significantly, playing an important role in addressing the developmental needs of underprivileged classes in India, especially in agricultural, banking and housing sectors, noted the government in an official statement. 

There are currently 8.54 lakh registered cooperatives. These cooperatives collectively procure and sell in large quantities. Presently, the registration of cooperatives as "buyers" was not covered within the existing mandate of GeM. 

(With PTI Inputs)

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