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Government E-marketplace: Everything you need to know

What is Government E-marketplace?

It is a national public procurement platform that was launched in August 2016. Its aim is to facilitate public procurement through a centralized web portal. If you are looking for business partner, this might be the best place for you to begin. Since everything happens via technology and digital processing, there is a heightened degree of transparency, efficiency and speed. It is an end-to-end solution that provides buyers and sellers a cashless, paperless and contactless platform. The tools available on the portal include e-bidding, reverse e-auction and demand aggregation. More than 3000 orders are placed on the Government E-Marketplace every day across India. This is a great portal if you want to find a business partner to grow your business or to explore new opportunities.

 

A few words on public procurement

The government needs to procure thousands of goods and services daily. For this the government is constantly looking for trustworthy business partners. Various government departments and state-owned enterprises regularly invite private players to offer their products and services through various channels. Since a considerable amount of the GDP and the taxpayer’s money goes into these procurements, it is a vital component of the economy. This World Bank blog post says that the Indian government spends an estimated 20% of its GDP on public procurement. This LiveMint news report says that the Government E-Marketplace portal is heading towards performing e-commerce transactions more than Amazon India and Flipkart put together.

 

Previously, only big businesses could transact with the government and accommodate its partnership agreement because smaller transactions wouldn’t make sense in terms of economy of scale. Even one of the government departments wanted to find a business partner through some SME partner program, financially it wasn’t viable.

 

With the “Business to Government” platform, there has been a marked reduction in lead-time in government procurement. This has enabled small enterprises and businesses to offer their products and services to various government departments just like big businesses could do previously. Small businesses to find the government as a profitable business partner in case the find it difficult to find a business partner within their own niche due to competition or lack of funds.

 

The above World Bank report says that by October 2018, 138,000 sellers had sold approximately 469,000 products and services through the portal resulting in transactions worth Rs. 115 billion.

 

Hence, if you’re a small business, and if you feel that you can provide products and services to government departments, you should definitely get yourself registered at the Government E-Marketplace portal. Who knows, maybe you can also get the much-needed business loan or get the SME finance you have been looking for, for a long time.

 

Who are the buyers on the Government E-Marketplace and what advantages do they have?

All buyers are from the government. So, if you want to find a business partner through the Government E-marketplace, you will be working with one of the government representatives. These may include central government and state government ministries and departments. Every department, attached and subordinate offices, central and state autonomous bodies, central and state public sector units and basically every government body that needs to procure goods and services not just for carrying out regular government functions, but also for various construction projects such as airports, railway, roads, ports, hospitals, stadiums and housing facilities (just to name a few).

 

The government also intends to allow private companies and businesses to buy on the Government E-Marketplace which will further expand the horizon of the portal, bringing more buyers to the small business sellers. Officers of the rank of joint secretary and equivalent can purchase through the Government E-Marketplace portal. These officers can further authorize officers of their choice (from their department) to use the portal to make the purchases.

 

Who are the sellers on the Government E-Marketplace and what advantages do they have?

If you manufacture or provide genuine products and services, you can become a seller on the Government E-Marketplace. To be able to register and provide your products and services, you will need to submit the following documents:

  • PAN card
  • Aadhaar card
  • Mobile number that is linked to the Aadhaar card
  • Bank account
  • KYC documents
  • Cancelled check copy
  • Address proof

 

Once your registration is approved and activated you can list your products and services on the portal. You can also respond to the requests placed by various government departments.

 

As a seller, the advantages that you have on the Government E-Marketplace portal include -

  • Direct access to all government departments and public sector units looking for products and services to buy.
  • One-stop digital facility for bids and reverse auctions on products and services.
  • A seller friendly dashboard for sending and monitoring transactions and pending requests.
  • A clearly defined and uniform purchase procedure without paper contracts.
  • You can easily compete with bigger businesses without running the risk of having to bribe officials or being outbid by unfair means.
  • Make new product suggestions to prospective buyers.
  • A dynamic pricing based on market conditions.
  • Respond immediately to purchase requests.

 

The benefits of the Government E-Marketplace portal for small and medium-size businesses

Before the Government E-Marketplace portal the government bidding and purchase facility was either available to bigger businesses, or those businesses who had access to the right departments and officials.

 

The portal has, with a single sweep, democratized the government procurement process. The entire thing is automated, and most of the critical decision making happens at the software logic level. Although the final decision is made by the official on the other side, you get a fighting chance for every procurement opportunity. Explore various sections of our website if you need more information on a suitable business loan partner program in case you want to improve your prospects in getting more contracts through the Government E-marketplace portal.

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