Cabinet approves setting up of Government e-Marketplace SPV; approved winding up of DGS&D

New Delhi, Apr 13 (KNN) The Union Cabinet chaired by the Prime Minister Narendra Modi has given its approval for setting up of a Special Purpose Vehicle to be called Government e-Marketplace (GeM SPV) as the National Public Procurement Portal.

The SPV will be set up as Section 8 Company registered under the Companies Act, 2013, for providing procurement of goods & services required by Central & State Government organizations.

GeM SPV will provide an end-to-end online Marketplace for Central and State Government Ministries / Departments, Central & State Public Sector Undertakings (CPSUs & SPSUs), Autonomous institutions and Local bodies, for procurement of common use goods & services in a transparent and efficient manner.

Meanwhile, the Cabinet also decided that Directorate General of Supplies & Disposal (DGS&D) shall be wound up and cease its functions by 31st October, 2017.

In case it is not possible to wind up DGS&D by 31st October, 2017, the Department may extend the date of closure with proper justification latest upto 31st March, 2018.

The DGS&D, the government’s central purchase arm, launched the Government e-Marketplace, or GeM in August. The portal allows buyers to make direct purchases of as much as Rs 50,000. Beyond this limit, purchases should be made through price comparison, bidding or reverse auction. Through the portal, the government will be able to consolidate its requirements across departments and be able to derive better prices from vendors for bulk purchases.