Why in News?

• While the Ministry of S&T has announced its intent to galvanise research in India through the National Research Foundation Bill 2023, scientists say that the mandatory procurement via GeM is a major stumbling block.
• This is impeding the sourcing of equipment and materials necessary for research.

What’s in Today’s Article?

• What is the Government e-Marketplace (GeM) (Features, Significance of GeM Portal)
• News Summary (Issues Faced by the Scientific Community on GeM)

What is the Government e-Marketplace (GeM)?

• GeM is an online platform for public procurement, launched in 2016 by the Ministry of Commerce and Industry (MoC&I), Government of India.
• It was created with the objective to create an open and transparent procurement platform for government buyers to facilitate the online procurement of goods and services.
• The purchases through GeM by Government users have been authorised and made mandatory by the Ministry of Finance under the General Financial Rules, 2017.
• The platform is owned by GeM SPV (Special Purpose Vehicle) which is a 100% Government-owned, non-profit company under the MoC&I.
• The portal features over 11,000 product categories with more than 29 lakh listed products, as well as over 270 service categories with more than 2.5 lakh service offerings.

What are the Features of GeM?

• GeM is a completely paperless, cashless and system driven e-market place that enables procurement of common use goods and services with minimal human interface, thus, brings in transparency.
• Being an open platform, GeM offers no entry barriers to bonafide suppliers who wish to do business with the Government.
• Seamless processes and online time-bound payment has given confidence to the vendors and reduced their 'administrative' cost.

Significance of the GeM Portal:

• The minimum savings on the platform are about 10%, which translates into a savings of over ₹ 30,000 crore worth of public money.
• GeM gives Indian MSMEs a relative advantage over foreign suppliers of products, and promotes the government’s Make in India initiative.

News Summary:

• While the GeM has been in force since 2017, scientific organisations were exempt from the mandate until 2019.
  • This meant they could continue to invite bids after setting out requirements, or reach out to known suppliers.
  • This often means several parts or chemicals must be available at the right time. However, this entire process can take months.
• After 2019, products ranging in cost from ₹5 lakh to ₹200 crore must be procured via India-registered companies, which are often of substandard
  • Much of the equipment that is necessary for research falls into this price band and needs to be sourced internationally.
  • This became a problem during COVID-19, and the government exempted about 2,000 products.
• Insistence on a centralised procurement system, only created a new ecosystem of contractors and vendors, rather than actually encouraging the desired Atmanirbharta (self-reliance).
• An early draft of the proposed National Research Foundation Bill suggested that the GeM no longer be mandatory for scientists.
• Scientists should be made accountable for the science they do and not be burdened with ensuring that their equipment is procured at the lowest cost.