Sikkim Govt Signs MoU with GeM to Boost Public Procurement and Enhance State’s Economic Inclusion

GeM is the unified, one-stop online platform for procuring goods and services for all Central Government departments, CPSEs, State Governments, and cooperatives.

The Government of Sikkim and Government e-Marketplace (GeM) under the Ministry of Commerce and Industry, Government of India, signed a Memorandum of Understanding (MoU) today to boost the adoption of GeM for public procurement within Sikkim’s government departments. This partnership marks a major milestone as GeM has now extended its platform to cover all States and Union Territories of India, facilitating efficient, transparent, and inclusive procurement processes.

The MoU signing was overseen by the Chief Secretary, Government of Sikkim, Shri Vijay Bhushan Pathak, IAS, and on the GeM side, the MoU was signed by Shri A.V. Muralidharan, Chief Buyer Officer (States and UTs). The event was also attended by Shri Tarun Kumar Sharma, Chief Accounts Officer of the Home Department, Shri Amardeep Gupta, Director and GeM Nodal Officer for Sikkim, and several other key officials.

Significance and Scope of the Partnership

As of 23rd October 2024, the Government of Sikkim had already procured goods and services worth ₹90 crore through the GeM portal. With the signing of the MoU, Sikkim's government buyers will now receive enhanced support, including focused training, handholding, and capacity-building programs, to streamline their procurement processes further.

The MoU aims to bring Sikkim-based sellers, including Micro, Small, and Medium Enterprises (MSMEs), into the GeM ecosystem. Currently, Sikkim boasts 3,078 sellers on the platform, of which 2,720 are Micro sellers, contributing to orders worth ₹182 crore. The Government of Sikkim, in collaboration with the MSME Department, will conduct additional seller onboarding programs to further expand participation from local businesses, ensuring their products and services can reach national buyers through the GeM platform.

GeM’s Role in Revolutionizing Public Procurement

GeM is the unified, one-stop online platform for procuring goods and services for all Central Government departments, CPSEs, State Governments, and cooperatives. The platform has introduced a paradigm shift in public procurement, making the process more efficient, transparent, and inclusive through innovative tools such as direct purchase, L1 purchase, reverse auctions, and competitive bidding. The use of these tools has resulted in significant cost savings and increased procurement efficiency.

In FY 2023-24, procurement on GeM exceeded ₹4 lakh crore, a remarkable achievement in driving digital procurement for the public sector. This figure is expected to rise even higher in FY 2024-25 with continued adoption by state governments, including Sikkim.

GeM has deployed a network of consultants, officers, and business facilitators across India to drive the adoption of its portal. Their efforts, alongside GeM's technological advancements, have significantly enhanced transparency and inclusivity in public procurement, making it easier for local and smaller sellers to participate and thrive in this marketplace.

With this partnership, the Government of Sikkim is set to further strengthen its public procurement system, drive economic growth, and boost the participation of local sellers in national procurement opportunities. This initiative supports Sikkim’s economic goals by creating more business opportunities and fostering inclusive growth across the state’s diverse business ecosystem.