Small businesses has scope in Governments and PSU?

Let us celebrate this year, ‘Azadi Ka Amrut Mohotsav’, with the start of participating in various Bidding or Tenders or we can say Reverse Auctions too. You can participate in those for your Product and Services. Various Government Departments, Public Sector Units as well as Refineries have some requirements every time. Those get published on their sites from time to time. We have to visit those sites and find their requirements and verify your Product specifications. 

Under the mission of ‘Make in India’, the Government support all start-up businesses and all types of small businesses.

There are many ways, to participate in bidding or tenders. Many Public Sector Units, State Governments, and Refineries have developed their websites and/ or portals through which anybody can participate. Of course, there are many terms and conditions, those may vary. Conditions might be depending on the product and its utilization by a specific department. At the time of bidding, you have to go through those and you must fulfill those. Some terms and conditions are mandatory too.  

Nowadays, GeM is an ultimate site designed by Government, and many companies enjoyed and grow their businesses by supplying their products or services to Government departments. GeM is an online Market place where you should get registered first. This supply might be as Business to Business and/or Business to Government.

Photo by Vlada Karpovich: https://www.pexels.com/photo/crop-woman-using-laptop-on-sofa-at-home-4050304/

GeM is a short form of a one-stop Government e-Market Place hosted by DGS&D where common user goods and services can be procured. GeM is a dynamic, self-sustaining, and user-friendly portal for making procurement by Government officers.

According to GeM records, still today 5514151 Products are registered with the GeM portal. 5185462 Sellers and Services Providers are active on this 

The government always depended heavily on public procurement to carry out its functions. The government’s goal in implementing GeM was to build public procurement’s openness, efficiency, and basically, it’s speed.

The GeM portal registration process:

The GeM portal registration and the bidding process are indeed more complicated than most common people think. So, let’s try to understand the steps evolving :

  1. Creating a GeM Portal Seller Account Company Profile Updating
  2. Caution Money Deposit 
  3. Vendor evaluation on GeM
  4. Adding Your Company
  5. Adding products on GeM Portal 
  6. Bidding participation and the appointment of resellers

Every section has many options, and you have to follow the steps or select the relevant option. Let us understand those steps in detail:

  1. Creating a GeM Portal Seller Account

To start selling on the GeM, you must first create an account on the GeM portal. The Director of the Organisation is the only authorized person for GeM portal registration. The key person or Proprietor can do the registration. The Aadhaar or PAN Card of the organization’s Director / Proprietor can be used to sign up for GeM.

  1. Company Profile Updating

There are four main elements in the company profile: PAN Validation, Company Details, Office Location, and Bank Account. MSE, Startup, and Tax Assessment are three additional optional parts that may be included in the application. After changing the profile, a caution money payment must be given as per the company’s sales volume.

2. Caution Money Deposit

Caution Money Deposit is mandatory for all the sellers on the GeM portal, whether OEM / Reseller / Service Provider. The amount is as below.

(A) Seller Turnover less than 1 Cr.: Rs 5,000/-

 (B) Seller Turn over > 1 Cr. but < 10 Cr.: Rs 10,000/-

 (C) Seller Turnover > 10 Cr.: Rs 25,000/-

This is a one-time amount.

3. Vendor evaluation on GeM

Vendor Assessment on GeM is required after the caution money payment to obtain an OEM certificate. Sellers interested in bidding on Q1 and Q2 categories of products must complete the GeM Vendor Assessment to be considered for those contracts. The GeM Portal registration requires all manufacturers to become OEMs, regardless of the type of product they want to sell. The Quality Council of India conducts vendor evaluations for GeM. (QCI).

4. Adding Your Company

Companies can list their products and services on GeM as OEMs. It doesn’t matter if a vendor has a trademark or not; you can still list them under an unregistered brand. For your Brand approval, the GeM timeline might be of four working days.

5. Adding products on GeM Portal 

After a brand is listed on the GeM portal, dealers, manufacturers, and service providers must list their goods and services. It is called Product Listing on Government e-Marketplace. After the GeM Authority has approved the listing, then only your product or service will appear on the GeM website.

6. Bidding participation and the appointment of resellers

Vendors can participate in GeM’s Reverse auctions or Tenders and place orders after listing their goods and services. A reseller’s permission to list an OEM’s products and services is granted after the OEM has received it.

This is the complete procedure to participate in GeM tenders. 

 Some additional Information:

GeM does not charge for Registration. Engaging a private company with experience in building such a platform would have been the easiest way out. But the deadline was tight. That is where the national e-Governance Division of the IT ministry came in. Any legal entities registered in India are eligible to register on GeM as a Seller/Service Provider. The following are the type of Sellers / Service Providers who can register in the GeM Portal:

·       Sole Proprietorship– Either an unregistered organization or an Individual providing consulting

·       Partnership Firm– All Registered Partnership Firms

·       Company– All Registered Companies both Pvt. Ltd and Public Ltd

·       Trust / Society– Any Registered Trust / Society which sells goods and services

·       PSU– All Public Sector Undertakings which sell Goods / Services to various Government Entities

It is not a waste of money. The step is to encourage, even the smallest seller can sell to the government directly without much hassle. And save the money that is getting wasted in the name of corruption.

The Government e-marketplace platform (GeM) is where any dealer can sell their goods and services directly to the government without any intermediator, corruption, or limited paperwork, and via online platforms just like Flipkart, and Amazon e-commerce sites.

To let know more please do not hesitate to call at 9325348183 or write me at [email protected]

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