Overview of GeM registration in Bhopal, Madhya Pradesh

Public procurement is a method used by state-owned enterprises and government departments to purchase services and goods for their operational needs from private businesses. But, at times there are higher chances of collusion or corruptive practices taking place in the process. Hence, the Govt of India launched the Government E-Marketplace, an e-marketplace for public procurement from private individuals or businesses following the provisions of the Allocation of Business Rules, 1961 on 9 Aug 2016. It facilitates the union/state Government Departments/Ministries to procure goods/services of the highest quality at reasonable prices within the necessary delivery period from 3lakhs+ sellers listed on the portal.

The primary aim of the GeM is to encourage public participation, allow access to small-scale industries & start-ups to large buyers, ensure faster procurement of goods & services, and above all, bring transparency in the public procurement processes through direct purchase or e-bidding for larger orders in a contactless manner through direct purchase by Government/ Ministries /Departments of Central/State Governments from manufacturers/service providers directly with least interaction possible.

The GeM portal completes control and ownership of the marketplace through a Special Purpose Vehicle, a non-profit company formed under the direction & supervision of the Ministry of Commerce, under the Union Government of India. It overlooks the functionalities of the portal.

For the facilitation of smooth transactions between sellers & buyers, the GeM portal offers tools such as reverse e-auction, e-bidding, and demand aggregation to help government users/buyers get the best value for their money. However, to avail of all the benefits of the GEM, one needs to register themselves as a buyer or seller on the online GEM portal in Bhopal, Madhya Pradesh.

 

GeM registration in Madhya Pradesh

Located in Central India, Madhya Pradesh is the second-largest state in terms of area and 5th largest state in terms of population. Madhya Pradesh shares its borders with Uttar Pradesh, Chhattisgarh, Gujarat, Rajasthan, and Maharashtra. Till 2000 Madhya Pradesh used to be the largest city in India in terms of area, but in the year 2000, Chhattisgarh was carved out and designated as a separate state, making it the second-largest state after Rajasthan. Madhya Pradesh has the 10th largest economy in India, and it ranks 23rd among the states in the State Human Development Index. The state is rich in mineral resources and has India’s largest diamond and copper reserves.

The primary source of income in Madhya Pradesh is agriculture, meaning the state has an agrarian economy. The state’s major crops are soybean, wheat, gram, maize, rice, sugarcane, cotton, rapeseed, mustard, and arhar. Madhya Pradesh consists of five Special Economic Zones (SEZs), of which three are IT-related, mineral-based, and agro-based. For doing excellent work in Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) 2005, Madhya Pradesh has won the 10th National Award.

Capital- Bhopal

Business ideas in Madhya Pradesh

Madhya Pradesh is the second most preferred state for the corporate and industrial business after Gujarat. If you want to set up a small business that needs low investment in Madhya Pradesh, then here are a few ideas: –

 

Food processing business

Madhya Pradesh is an agrarian state with wheat, soybean, gram, sugarcane, rice, maize, mustard, etc., the major crops in the state. Setting up a food processing business in Madhya Pradesh is a good idea as it is an agrarian state. People cannot consume raw food, so it needs to be processed for consumers’ consumption. The food processing business requires considerable investment but will raise huge profits. Being an agricultural state Madhya Pradesh is an ideal state for the food processing business.

 

Minerals related business

Madhya Pradesh has a unique geographical location as it is centrally located and shares the border with six states with rich mineral resources. Madhya Pradesh is a mineral-rich state with tremendous potential for various mineral-related businesses. Depending on the capital that you have for the investment, you can start any minerals-related business in Madhya Pradesh. It is counted among the states with diamond mines, so you can also establish a diamond cutting and polishing business in Madhya Pradesh. Mineral-related business requires moderate investment depending on what kind of business you are choosing.

 

Agro-related business

Being the fourth-largest producer of agricultural products in India, Maharashtra is perfect for establishing an agro-related business. Madhya Pradesh ranks first in soybean, gram oil, seeds, pulses millets, and linseed production. Agriculture is one of the top contributors to the state’s economy, and 74% of the population is directly or indirectly dependent on agriculture. So raw materials required for agriculture-related business will be locally available to you in the state. Some agri-related businesses you can start in Madhya Pradesh are fertilizers, organic farming, organic grocery stores, orange farming, etc. This business will require low investment, and you must give a lot of energy and effort in the initial years of establishing the business.

 

Tourist agency

Madhya Pradesh has four UNESCO World Heritage sites that attract tourists around the globe. The state has many forts, palaces, archaeological sites, stupas, monuments, etc., so setting up tourism-related businesses like restaurants, tourist agencies, and transport businesses will help you make huge profits. The best part about the tourism-related business is that it needs low investment.

 

Cement business

Setting up a cement industry in Madhya Pradesh is a profitable business idea as the state is the third-largest cement producer in India. It is known for the rich cement-producing minerals, so the raw materials required for establishing a cement manufacturing plant will be locally available in the state. Prominent groups like Vikram cement, Prism Cement, Diamond cement, Birla Corporation, ACC Cement, and Mahiar cement have established their manufacturing plants in Madhya Pradesh.

 

Textile business

Known for the production of Chanderi and Maheshwari sarees, Madhya Pradesh is famous for textiles. The textiles, especially the handicraft produced in Madhya Pradesh, reflect the state’s rich culture and tradition. Again, the raw materials that are needed for the production of textiles are locally available. Textile business in Madhya Pradesh needs reasonable investments and a lot of effort.

 

The startup ecosystem of Madhya Pradesh

According to the state startup ranking 2019, Madhya Pradesh is entitled as the emerging startup ecosystem. Madhya Pradesh is called the heart of India and attracts a lot of investment in diverse sectors like engineering electronics systems, information technology, design, and manufacturing. In 2016 the state government of Madhya Pradesh outlined the startup policy with a vision to encourage entrepreneurial spirit and innovation among the state’s youth. This startup policy of Madhya Pradesh is known as the ‘Madhya Pradesh incubation and startup policy.’ The policy was formulated under the department of Micro Small and Medium Enterprises (MSME) and was updated in 2019. Following are the objectives of the Madhya Pradesh startup policy: –

The Madhya Pradesh startup policy vision is to strengthen the startup culture by inculcating and nurturing entrepreneurial skills in the people.

The motto of the policy is to encourage and inspire youth to develop innovative ideas to build a strong startup ecosystem.

By outlining the startup policy, the state government of Madhya Pradesh wants to promote entrepreneurship activities, particularly among the youth, by enabling sustainable and inclusive socio-economic development across the state.

Through the startup policy, the state government of Madhya Pradesh aims to promote and develop employment opportunities, thus eradicating unemployment within the state.

The state vision is to build a robust startup ecosystem by encouraging the setting up of new technology businesses and incubation centers.

 

Salient Features of GeM portal in Bhopal, Madhya Pradesh

  1. The GeM portal is a simple, convenient & contact-less marketplace that enables the buyers (Govt departments/Ministries/PSUs) to procure goods & services from the sellers who have registered themselves & listed on the portal in an efficient & transparent manner.
  2. The GeM online marketplace has disrupted the traditional means of public procurement, and the whole concept rests on these three pillars namely- Inclusion, Usability & Transparency; and Efficiency and Cost Savings.
  3. With tools like reverse e-auction, e-bidding, and demand aggregation, etc. among others, the GeM portal acts as a one-stop-shop that facilitates easier online e-procurement of consumer goods & services as required by various government sectors and departments.
  4. Registration as either a buyer or a seller is the prerequisite to accessing the GeM portal in Bhopal, Madhya Pradesh. Also, it shall be compulsory for every seller to mention the ‘Country of Origin’ during the registration process, which will be displayed later on the portal. With GeM the Government of India aims to extend its support to smaller businesses and start-ups that can provide better products at reasonable prices.
  5. The GeM portal eliminates the human interface allowing the buyer to search, compare select from the variety of products, and buy in bulk available on the platform which provides for details such as product details, quantities, etc. including all details required for each product. Similarly, the seller could list the products, and keep a check on the supplies, payments, and price changes as per the requirements and changing needs of the market.
  6. Since the GeM portal is a completely transparent platform, there are no entry barriers or conditions for seller registration on the platform. The parties to a transaction on any particular transaction on the platform are notified of each progress through SMS and e-mail notifications for each transaction that takes place on the platform.

 

Important terms under the GeM portal in Bhopal, Madhya Pradesh

i. Buyer – The organizations who are eligible to register as a Buyer and are authorized to procure goods from the GeM portal in Bhopal, Madhya Pradesh

  • Ministries under Central Government/State Government
  • Departments under the State government including its subordinate offices.
  • Autonomous bodies registered under Union & State Governments
  • Central and State autonomous bodies.
  • Public Sector Undertakings (PSUs)
  • Local bodies.

However, the buyer’s abovementioned shall be required to authorize Government officers/heads of offices as the primary users on the GeM portal in Bhopal, Madhya Pradesh, which includes-

  • Any officer of Central Government/State government/ Public Sector Units (PSU).
  • Autonomous bodies/ Local bodies/ Constitutional Bodies, or Statutory Bodies at the Deputy secretarial level;
  • Head of the office at Sub-Centre/ Unit/ Branch.

It is to be noted that these primary users are only responsible for registering their organizations on the GeM portal, but they are prohibited from participating in the process of procurement and can only be a consignee to receive a service/product. They are required to create user accounts for the secondary users, assign them roles and responsibilities and supervise all secondary users’ transactions on the portal. Secondary users will be responsible for procuring supplies of goods/services and related functions like receipt of stores, placing contracts and making seller payments, etc. The secondary user shall be authorized to use the GeM portal in Bhopal, Madhya Pradesh for such purchases as provided below-

Sum Manner of Purchase
Up to Rs. 25000/- Without any comparison (except automobiles) through the suppliers accessible on the GeM portal those who meet the required specification, quality, and delivery period.
Rs.25,001- Rs.5,00,000 L1 purchase by way of direct purchases

through the GeM sellers offering the lowest

Price by comparison between at least three different OEMs or service providers on the GeM portal meeting criterion related to the specification, quality, and delivery period.

Purchases above  Rs.5,00,000 Purchase from the supplier having the lowest price meeting the requisite specification, quality, and delivery period.

 

After obtaining bids, the purchases must be made using the reverse auction tool or online bidding provided on the portal (except in the case of automobiles where the applicable limit is Rs. 30Lakh. However, the procuring authorities should certify the reasonability of rates.

ii. Seller – Every seller who wishes to offer his products/services to the buyers on the GeM portal needs to register himself as a listed Seller by making an online application along with the prescribed documents and fees, i.e. commonly known as GeM registration.

In other words, the seller is a legal entity that sells his/her goods or renders services to the buyers registered on the GeM portal in Bhopal, Madhya Pradesh. Any of the following may be registered as a seller on the GeM portal in Bhopal, Madhya Pradesh-

  • Sole Proprietorship firm.
  • Partnership firm.
  • Limited Liability Partnership (LLP).
  • Private and public limited company.
  • Society registered under the Societies Act.
  • Statutory bodies.

 

iii. Original Equipment Manufacturer – Under the GeM portal in Bhopal, Madhya Pradesh, there are two categories of sellers i.e. OEM (Original Equipment Manufacturer) or an authorized Reseller. While OEM is the actual owner of the trademarked products offered for sale on the portal or such actual manufacturers who do not possess any trademark, whereas reseller is a person/entity having the authorization to sell products manufactured by the OEM in the open market.

Following are the persons who are considered OEMs and can sell products on the GeM portal in Bhopal, Madhya Pradesh:

  • Manufacturers
  • Brand owners and third-party manufacturing.
  • Importer and authorized sellers.
  • Service provider.
  • Assemblers

 

Process of GeM Seller Registration Online in Bhopal, Madhya Pradesh

Process of GeM Seller Registration Online in Bhopal, Madhya PradeshStep 1 – Access the GeM portal in Bhopal, Madhya Pradesh

In the first step of registration, the applicant will be required to access the GeM portal by logging on to (https://gem.gov.in/). On the page, you will find two tabs Seller or Buyer registration, the user will be able to find it right below the “Sign Up” tab, which will redirect him to the page of “terms and conditions” of the website, before, starting the process, go through the module accurately before tapping on the “accept” option.

Step 2- Create a Seller Account on the GeM portal in Bhopal, Madhya Pradesh

The first step towards seller registration on the GeM portal is by creating an account for the prospective seller. Registration on the GeM portal should be done only by an authorized person (Director of the organization or a key person/proprietor). Sellers can sign up on GeM through the Aadhaar/PAN card of the key person of the organization.

Step 3- Update Organization Profile & Fill up the Form in Bhopal, Madhya Pradesh

After acceptance of the terms & conditions on the portal, the user will be redirected to the gem seller registration form.  During this, the user will be required to fill in details of the applicant as well as his organization in four main sections- PAN validation, Organization details, office location, and bank account details. Further, there are three operational sections i.e. MSE, Start-up, & Tax Assessment, which need to be completed one by one.

  • Jot down the name of the organization correctly.
  • Now, the user will be required to choose the type of registration as per his comfortability. i.e. Aadhaar or PAN-based registration and further include personal details such as the Name of the applicant or authorized signatory, card number, DoB, address, etc.
  • Next, the user will enter his mobile number details which should be in use, and verify the same using OTP. To receive OTP Tap on the “Send OTP” option. Once OTP is received, enter the OTP in the prescribed section & authenticate it. Similarly, the user has to authenticate his email address.
  • Once the user authentication is completed, he can create his username along with the password for accessing the GeM portal & completing the process of GeM seller registration.

After the completion of the user profile on the portal, caution money has to be paid by the seller under the turnover of the entity.

Step 4- Seller Assessment on GeM in Bhopal, Madhya Pradesh

In the next step, the seller needs to apply for seller assessment through the GeM portal to obtain an OEM certificate. Seller Assessment is compulsory for those who wish to participate in public procurement of Q1& Q2 categories of products, which is carried out by the Quality Council of India. Thus, irrespective of the category of products required to be sold on the portal, manufacturers must become OEMs.

Step 5- Listing of the Products/Services to be procured through GeM in Bhopal, Madhya Pradesh

Subsequently, after registration & assessment, the OEM can list his offerings with his brand under the relevant category of products & services. Vendors can list their products whether or not the trademark is registered or not registered on unbranded products. After listing, the products & services of the sellers/vendors will go on live on the GeM website after the GeM authority approves the listing.

Step 6 – Bid Participation & Appointment of Resellers in Bhopal, Madhya Pradesh

After listing the products or services to be procured by the buyers on the platform, any registered seller can participate in the tender & submit quotations and accept orders on GeM.  OEMs can submit bids either through themselves or through the authorization of resellers to list their products & services after getting approval.

Next, whenever any buyer buys any products, the concerned seller needs to deliver the product to the consignee when an order is received by entering its details on the portal. After the order is delivered, the consignee will inspect the product and issue acceptance or rejection online. If the consignee accepts the order, he/she will generate a Consignee Receipt and Acceptance Certificate (CRAC).

Once the CRAC is issued, the buyer will process the bill & forward the same to the payment authority post which the payment will be received within ten days of the generation of CRAC.

 

Caution Money is required to be deposited for GeM Registration in Bhopal, Madhya Pradesh

 

      Caution Money Deposit Fee
i.   Seller holding an annual turnover lesser than Rs. 1 Crore Rs. 5,000/-
ii. Seller holding a turnover above Rs. 1 Crore but lesser than Rs. 10 Crores Rs. 10,000/-
iii. Seller holding a turnover more than Crores Rs. 25,000/-
Other than this, every seller shall be required to pay a Vendor Assessment Fees which will be equal to Rs. 11,200 + GST

 

 

Documents Required for GeM Registration in Bhopal, Madhya Pradesh

Like any other process of authorized documentation, the user will be required to prepare & keep ready the following documents while filling the form for seller registration on the GeM portal in Bhopal, Madhya Pradesh-

  • Proof of identification for the primary user (proprietor/ nominated partner or authorized signatory in case of company/LLP) e. Aadhaar, PAN, etc.
  • Certificate of Incorporation of the business organization including Udyog Aadhaar, or LLP-associated requirements
  • Verification of the Authorised person of the business organization through Income Tax Return)
  • Details of – Registered Office, Billing Address, Factory, Warehouse, other Office Premises
  • Bank Account details of the business along with the supporting KYC documents;
  • Trademark registration certification;
  • Details of communication mobile number & email address as per Aadhaar Card
  • MSME registration certificate(where applicable)
  • NSIC registration certificate (if applicable)
  • The latest copy of ITR (along with the details related to business profits or gains)

It is to be noted that during the process of seller profile assessment if any of the documents submitted are found to possess false information, such applicant will be exterminated from the registration procedure.

 

Benefits of GeM Portal in Bhopal, Madhya Pradesh

Benefits of GeM Portal in Bhopal, Madhya Pradeshi. Encourages Equal Public Participation in Govt. Tenders– The primary objective behind the launch of GeM is to curb corruptive practices and allow more public participation in Government tenders.

ii. Simple, Convenient & User-Friendly Dashboard- The GeM portal has been designed in a way to simplify end-to-end processes from registration to transaction between sellers & buyers on the platform, which could be completed the conveniently at any place by any applicant in India. Further, with new tools like e-bidding, auction, payment, contract management, etc. the process has been made more effective as well as efficient.

 iii. Allows greater benefits for the buyers- The GeM portal also allows several benefits for the buyers including-

  • Opportunity to get the best from the variety of offerings available from the sellers at reasonable prices through e-bidding from more than 3Lakh sellers;
  • Longer bidding duration between 10-21 days;
  • Pin-code-based seller choice for direct purchases;
  • Availability of ATC library for the addition of terms and conditions;

iv. Benefits to SMEs & Start-ups– The GeM portal also allows benefits to small-scale industries & start-ups with features such as –

  • Allowing Direct purchases up to Rs. ₹25,000
  • L1 purchases for sums between ₹25,000 – 5 Lakhs rupees.
  • Enables price comparisons and price trends between Multiple Suppliers
  • Allows Integrated Payment Systems & notifications to suppliers directly.

v. Complete Online security – The GeM portal safeguards sensitive information related to both parties through its secure platform. It also takes effective measures such as e-verification of documents & e-signed digitally at each stage.

vi. Effective Grievance Redressal Mechanism – GeM portal allows a quick & effective online grievance redressal mechanism between parties online.

vii. Introduction of new features for OEMs- In order to afford more convenience for OEMs, there have been certain new features introduced through the portal which include additional enhanced parameters in the existing report apart from the new chart widgets in agreement with the OEM & MAIT recommendations.

viii. Benefits for Sellers-

  • Direct Access To The Largest Buyers In The Country
  • PAN (Presence across Nation) India Reach With Minimal Marketing
  • Direct Purchase, Bids, And Reverse Auctions
  • Dynamic Pricing Based On Market Conditions
  • Multi-Lingual Support Desk

 

Make in India (MII) Certificate for OEMs in Bhopal, Madhya Pradesh

Through a circular no. P-45021 was notified on 04.06. 2020, the Department of Promotion of Industry & internal trade, under the Government of India declared a ‘Make in India’ certificate to be issued to the sellers in Bhopal, Madhya Pradesh encouraging the Make in India initiative & promoting the manufacturing and production of goods & services in India and further create employment opportunities  & enhance the income of the population. The sellers having the Make in India certificate will be given more preference during L1 (lowest bidding) during receiving bids for the tenders. Additionally, local suppliers holding a Make in India certificate on the GeM will also be given preference under other categories.