Global entities will soon be able to participate in government procurement bids through the Government e-Marketplace (GeM), a portal for facilitating online procurement of common use foods & services required by various government departments, organisations and PSUs. GeM officials on Monday said that the global tender enquiry (GTE) functionality has already been introduced on the portal. To onboard foreign bidders, GeM has also incorporated a multi-currency payment system. However, certain conditions have been put in place to ensure that the domestic industry is not adversely affected, officials added.
“All currencies are allowed. It is for the buyer to select the currencies in which they want to receive offers from sellers,” said Mihir Kumar, Chief Executive Officer (CEO), Government e-Marketplace (GeM).
According to GeM officials, most of the demand for such global tenders is coming from central public sector enterprises (CPSEs), particularly in sectors such as petroleum and natural gas, where certain technologies are not yet available domestically. There has also been some interest from scientific ministries and research departments. However, GeM clarified that global tendering will not be opened indiscriminately, and existing guidelines will continue to apply.
Buyers will be required to first explore domestic markets before opting for international bids. Procurement from foreign firms will be allowed only above specified thresholds, while purchases below these thresholds will require approval from competent authorities.
“Below certain thresholds, buyers have to seek approval from competent authorities such as the Secretary (Coordination) in the Cabinet Secretariat. Proposals are reviewed and approved there, and only then can buyers proceed with global tenders. So, guidelines are already in place,” a GeM official said.
While trade agreements with countries such as the UAE and the UK already provide for their companies to participate in India’s public procurement process, other countries will also be allowed to bid on GeM, Kumar clarified.
On trade agreements such as the proposed India-UK Free Trade Agreement (FTA), officials said foreign suppliers, including those from the UK, would be classified as Class II suppliers. They would not receive Class I status, which is reserved for domestic firms.
A value threshold will also apply to foreign participation. “If a domestic Class I supplier is available, foreign bidders may find it difficult to compete. However, in the absence of such suppliers, contracts can be awarded to the lowest evaluated Class II bidder,” the official said.