Latest News | Use of GeM Portal Has Resulted in Substantial Reduction in Prices: Survey
Get latest articles and stories on Latest News at LatestLY. The government has benefitted from the launch of public procurement portal GeM as it has helped in reducing the cost of goods being purchased by ministries and departments by up to 56 per cent in certain cases, Economic Survey said on Monday.
New Delhi, Jan 31 (PTI) The government has benefitted from the launch of public procurement portal GeM as it has helped in reducing the cost of goods being purchased by ministries and departments by up to 56 per cent in certain cases, Economic Survey said on Monday.
The Government e-Market (GeM) portal was launched on August 9, 2016, for online purchases of goods and services by all the central government ministries and departments.
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According to the Survey, anecdotal evidence suggests that prior to the launch of GeM, government procurement prices were much higher than the prices prevailing in the market and there were constant complaints about inefficiency and rent seeking.
"The use of this e-marketplace has resulted in a substantial reduction in prices in comparison to the rates used earlier, with average prices falling by at least 15-20 per cent, up to 56 per cent," it said.
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Citing certain examples, it said the offer price of Parker Jotter Standard Ball Pen at GeM platform was Rs 200, as against Rs 207 on Amazon website.
Similarly, the offer price of Nilkamal Dustbin 60 Litres was Rs 840 at GeM platform, as against Rs 1,350 on Amazon.
Other products which are cheaper at GeM portal as compared to private e-tailers include Milton 1500ml thermos, Bajaj Pulsar 220 F, Godrej Interio Elite Mid Back Chair, Samsung Basic Television TV 43 Inch LED Backlit LCD Model: SAMSUNG DC43J; and Godrej Interio Steel Almirah 2400 mm (Slide N Store Compact Plus Wardrobe).
However, certain items have relatively higher prices at the GeM portal. It includes Omron White HEM 7156AP Blood Pressure Monitor, Kores Easy Cut 871 Paper Shredder, HERO CYCLES Jet Gold 28T Unisex Road Cycle (Single Speed, Black), and Nilkamal Pinnacle High Back Chair.
Government rules have mandated all ministries and departments to procure goods and services available on GeM portal.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)