In a significant move to promote transparency and eliminate unscrupulous practices in public procurement, Uttar Pradesh has achieved a historic milestone by becoming the first Indian state to fully adopt the Government e-Marketplace (GeM) platform. This change brings a big improvement in how the state buys goods and services, making the process fair for everyone and following central government rules. According to official estimates, this landmark decision could save Uttar Pradesh an impressive Rs 2,000 crore annually through GeM-based procurement of goods and services. The centralised platform ensures competitive pricing, minimizes the scope of favoritism, and eliminates inefficiencies caused by multiple procurement systems.
Historically, the state’s tendering practices were marred by a lack of uniformity, discretion, and loopholes that allowed for potential misuse. The absence of GeM adoption, despite its launch in 2016, hindered the state’s ability to achieve optimal efficiency in public procurement. The adoption of GeM resolves these issues, with uniformity and standardised rules eliminating the likelihood of unintentional violations or misuse.
Uttar Pradesh becomes India’s first state to adopt the Government e-Marketplace (GeM) entirely, ensuring transparency, boosting MSMEs, and saving ₹2,000 crore annually. A bold stride in governance transformation.#NayeBharatKaNayaUP pic.twitter.com/T6h3NKadxf
— Government of UP (@UPGovt) December 6, 2024
Uttar Pradesh’s adoption of GeM has already demonstrated tangible benefits. Recently, the Uttar Pradesh Building and Other Construction Workers Welfare Board utilized the platform to procure infrastructure materials for 18 Atal Residential Schools. These schools cater to students from Class 6 through the intermediate level, including children orphaned during the COVID-19 pandemic.
The timely procurement of furniture, IT equipment, and other essential materials ensured competitive pricing and swift delivery. The schools are now poised to provide high-quality education in an exemplary learning environment.
By becoming the first state to fully embrace GeM, Uttar Pradesh sets a precedent for other states. The initiative aligns with Prime Minister Narendra Modi’s vision of “Digital India,” fostering transparency, efficiency, and accountability in governance.
The move also supports the “Make in India” initiative by encouraging local suppliers and promoting fair competition. By streamlining procurement and creating equitable opportunities, Uttar Pradesh demonstrates its commitment to good governance and fiscal prudence.
The integration of the GeM platform in Uttar Pradesh enforces strict adherence to guidelines aimed at fostering transparency and efficiency in procurement processes. The policy mandates that no conditions contrary to GeM rules are permitted, prohibiting practices like price discovery bids, offline contracts, and quantity-based bids, along with restricting the request for samples during bid evaluations.
To encourage small businesses, tender eligibility criteria, such as turnover and past performance requirements, have been relaxed, providing greater opportunities for micro and small enterprises (MSEs). Moreover, all state departments are now required to procure at least 25% of their annual goods and services through the GeM platform. Non-compliance comes with penalties, including stringent actions against service providers who fail to deliver goods or services on time.
The policy also prioritizes worker welfare, mandating minimum wages, Employee Provident Fund (EPF), and Employee State Insurance (ESI) benefits for outsourced employees. To ensure accountability and fairness, service providers are prohibited from arbitrarily replacing outsourced employees post-hiring, while collusion or manipulation in bids attracts severe penalties, with provisions to report such cases to the GeM team. Additionally, a robust complaint redressal mechanism has been introduced, enabling compliance-related grievances to be reported via dedicated emails, which are then reviewed by high-level committees chaired by the Uttar Pradesh Chief Secretary and other senior officials.
Krishna Murari, Deputy CEO of Uttar Pradesh GeM, highlighted the transformative impact of this integration. He said, the use of GeM has made the buying process simpler and more transparent. It will help the state save a lot of money while supporting local businesses.
Officials further emphasized the importance of compliance with GeM rules, which ensures standardization and reduces discretion in procurement decisions. The state aims to scale up the use of GeM for all departments, enhancing accountability and efficiency.
Uttar Pradesh’s complete integration with the GeM platform is a bold step toward revolutionising public procurement in India. By eliminating outdated practices, encouraging small businesses, and ensuring accountability, the state has set the stage for a new era of governance.
The move is expected to inspire other states to follow suit, fostering a culture of transparency and efficiency across the country. With projected annual savings of Rs 2,000 crore, Uttar Pradesh’s decision to fully adopt GeM reaffirms its commitment to fiscal responsibility and equitable governance.
