Editor’s Note
This article reports on a significant policy shift by the Delhi government, which has banned hospitals from making direct or cart-based purchases through the Government e-Market (GeM) portal. The administration has warned that non-compliance may result in disciplinary or legal action.
The Delhi government has imposed a strict ban on direct purchases and cart-based procurement through the Government e-Market (GeM) portal for hospitals. The administration clarified that no healthcare facility or institution has the authority to make cart purchases or initiate bidding independently.
The order emphasised that any non-compliance with these guidelines will face serious consequences, potentially leading to disciplinary or legal proceedings as determined by the relevant authority.
The GeM portal, which commenced operations on Aug 9, 2016, functions as an online marketplace for central government ministries and departments to acquire goods and services. Commerce and Industry minister Piyush Goyal noted that the platform assisted in eliminating corruption while creating opportunities for start-ups, MSMEs, women, and businesses in small towns.
In April this year, Prime Minister Narendra Modi praised the GeM portal for enhancing livelihoods and supporting grassroots employment and economic development across India. The system currently enables transactions for government departments, ministries, public sector units, state governments, and central armed police forces.
According to the directive issued recently, the central procurement agency (CPA) shall exclusively manage all demands and bidding processes through e-procurement.
For emergency purchases, “in exceptional or emergency situations where immediate procurement via GeM cart is unavoidable, the concerned institution must submit the demand to the CPA. The CPA will assess the urgency and coordinate procurement on behalf of the hospital.”
The order stated that: