Model Answer
0 min readIntroduction
The Government e-Marketplace (GeM), launched in August 2016 by the Ministry of Commerce and Industry, is an online platform designed to facilitate transparent, efficient, and inclusive public procurement of common-use goods and services by central and state government departments, organizations, and Public Sector Undertakings (PSUs). By leveraging technology, GeM aims to eliminate middlemen, reduce corruption, and promote fair competition, thereby ensuring cost savings for the government. Despite its success in achieving substantial transaction values, GeM faces several implementation challenges and issues that impede its full potential and wider adoption.
While the Government e-Marketplace (GeM) has emerged as a cornerstone of digital governance and transparent public procurement, its implementation has not been without significant challenges. These issues span technological, operational, human, and policy dimensions, impacting both buyers and sellers.
1. Technical and Operational Challenges
- Portal Interface Complexity: Many users, especially those not tech-savvy, find the GeM portal's interface complex and difficult to navigate, particularly during registration, document submission, or bidding processes. This can lead to frustration and delays.
- Technical Glitches: Users frequently report technical difficulties such as slow-loading pages, errors in form submission, problems with uploading documents, OTP failures, or temporary system errors. These glitches can hinder transactions and cause missed opportunities.
- Login Issues: Incorrect credentials, outdated browser versions, or issues with OTP delivery are common login problems that can restrict access for sellers and buyers.
- Limited Functionality for Complex Procurements: While GeM is effective for common-use goods and services, it can struggle with complex or highly specialized procurements requiring intricate specifications and evaluation criteria, as noted by scientists facing issues with sub-standard materials for research.
2. User Adoption and Digital Literacy Issues
- Resistance to Change: Government departments and PSUs, accustomed to traditional procurement methods, sometimes show resistance to fully adopting GeM, preferring older systems due to ingrained habits or a lack of understanding of GeM's benefits.
- Digital Literacy Gap: A significant challenge, particularly in remote areas and among smaller vendors and certain government buyers, is the lack of adequate digital literacy and technical skills required to effectively use the platform.
- Lack of Awareness and Training: Many potential users, both buyers and sellers, lack comprehensive awareness about GeM's features, benefits, and updated processes, and often miss out on training opportunities.
3. Vendor Participation and Onboarding Issues
- Cumbersome Registration Process: While GeM aims for ease of registration, many Micro, Small, and Medium Enterprises (MSMEs) find the registration process cumbersome, involving specific documentation (PAN, GST, bank details, Udyam registration) which, if incomplete or incorrect, leads to delays and rejections.
- Poor Seller Profile Management: Sellers often struggle with incomplete profiles, lack of OEM panel or brand approvals, and poorly created product listings, leading to low visibility and rejection of offers.
- Lack of Bid Awareness: Many sellers, especially new entrants, miss out on bidding opportunities due to a lack of awareness about bid alerts or effective tracking mechanisms.
- Quality and Standardization Concerns: There have been instances where vendors on GeM supplied sub-standard materials, particularly for specialized needs like scientific equipment, raising concerns about quality control and compliance.
4. Payment and Compliance Challenges
- Delay in Payments: One of the most significant issues highlighted by sellers is the delay in payments from government departments after delivery. This discourages sellers from quoting competitive rates and impacts their cash flow.
- Compliance Monitoring: Ensuring timely delivery, adherence to quality standards, and post-procurement performance monitoring by buying organizations remains a challenge, requiring robust mechanisms.
- Multiple Portals and Lack of Mandatory Compliance: The existence of multiple procurement portals (e.g., for Defence, Railways) can limit GeM's mandate as a single national public procurement portal. Additionally, ensuring all Central organizations comply with Rule 149 of General Financial Rules (GFR) 2017, which mandates procurement of common-use goods and services through GeM, remains a challenge.
5. Data and Integration Issues
- Integration with Legacy Systems: Integrating GeM with diverse and often outdated legacy systems across various government departments and states adds a layer of complexity.
- Grievance Redressal: The process for dispute resolution or addressing platform-related issues can sometimes be slow, affecting user trust and efficiency.
Addressing these multifaceted challenges is crucial for GeM to fully realize its potential as a transformative platform for public procurement in India.
Conclusion
The Government e-Marketplace has undeniably revolutionized India's public procurement landscape by injecting transparency, efficiency, and inclusivity. However, its journey is marked by significant implementation hurdles, including technical complexities, gaps in digital literacy and user adoption, challenges in vendor onboarding and quality assurance, and persistent payment delays. Overcoming these issues necessitates continuous platform improvements, enhanced training and capacity building for all stakeholders, rigorous compliance enforcement, and seamless integration with existing systems. By proactively addressing these challenges, GeM can further solidify its role in fostering good governance and empowering a diverse ecosystem of buyers and sellers, ultimately contributing to a more robust and digital Indian economy.
Answer Length
This is a comprehensive model answer for learning purposes and may exceed the word limit. In the exam, always adhere to the prescribed word count.