Cabinet orders winding up Government's procurement department , to replace with e - marketplace.

Cabinet orders winding up Government's procurement department , to replace with e - marketplace.

NEW DELHI: The Union Cabinet on Wednesday ordered the Directorate General of Supplies & Disposal (DGS&D) to wind up operations by October 31 and approved a special purpose vehicle called theGovernment e-Marketplace (GeM SPV) as its replacement. 

The GeM would be the national public procurement portal and will be registered as Section 8 Company for providing procurement of goods and services required by central and state government organizations. It will provide an end-to-end online marketplace for central and state government ministries and departments for procurement of common use goods & services in a transparent and efficient manner. 

“DGS&D shall be wound up and cease its functions by October 31, 2017. In case it is not possible, the department may extend the date of closure with proper justification latest upto March 31, 2018,” the Cabinet said in a statement. 

The DGS&D, the government’s central purchase arm, launched theGovernment 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

The Economic Times.