Overview of GeM registration in Shimla, Himachal 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 Shimla, Himachal Pradesh.

 

GeM registration in Himachal Pradesh

Himachal Pradesh is a state in Northern India that has snow-laden mountains. The state is characterized by an extreme landscape featuring several peaks and river systems. Himachal Pradesh borders Punjab, Haryana, Ladakh, and Jammu Kashmir. It also shares an international border with the Tibet autonomous region in China. 90% of the state’s population resides in rural areas. Major sectors contributing to the economy of Himachal Pradesh are agriculture, hydropower, horticulture, and tourism. As per the Indian corruption study 2017, Himachal Pradesh is the least corrupt state in India.

Himachal Pradesh is ranked as the second-best performing state after Kerela in India on Human Development indicators. Agriculture is the main source of income and employment in Himachal Pradesh, and 90% of the total population residing in Himachal Pradesh depends directly or indirectly upon agriculture. Agriculture employs around 62% of the total workers in Himachal Pradesh. The main cereals grown in Himachal Pradesh are barley, maize, and rice, and apple is the principal cash crop grown in Shimla, Kullu, Chamba, Mandi, and Kinnaurdistricts.

After agriculture, hydropower is one of the primary sources contributing to Himachal Pradesh’s economy. The state has vast hydropower resources because of various perennial rivers flowing there. The high-capacity hydropower plants in Himachal Pradesh produce surplus electricity for its neighboring states like Delhi, Punjab, and West Bengal. Tourism is also one of the significant contributors to the economy of Himachal Pradesh. The state has breathtaking views that attract a lot of tourists all around the world, and Himachal Pradesh is preferred for adventure tourism by many tourists.

Capital- Shimla (Summer) and Dharamshala (Winter)

The startup ecosystem in Himachal Pradesh

The state has performed very well in the state startup ranking exercise 2018, and Himachal Pradesh has taken some major reforms to develop a robust startup ecosystem. According to the state startup ranking 2018, Himachal Pradesh has been acknowledged as an aspiring leader. In November 2016, the state government of Himachal Pradesh launched its startup policy called ‘Chief Minister Startup or Innovation Projects or New Industries Scheme.’ The vision of the Chief Minister’s startup policy is to turn the educated youth into entrepreneurs and job creators.

To develop entrepreneurial spirits in the young generation, the government of Himachal Pradesh is trying to build a strong and supportive startup ecosystem. Department responsible for building a strong startup ecosystem in Himachal Pradesh is the department of industries, and the Nodal Officer responsible for this task is the principal secretary (industries). To build a robust startup ecosystem, the state government has appointed a nodal team called startup and incentive cell with five members. The team’s task is to support the development of the startup ecosystem in the state.

Top business ideas in Himachal Pradesh

Floriculture

Himachal Pradesh has a group of climatic conditions which offer opportunities for the development of floriculture. You can set up a floriculture business and develop many floriculture products like flower seeds, live plants, etc. Himachal Pradesh has an agro-climatic condition that provides an ideal environment for the development of flowers and doesn’t need any additional planting material like expensive heating and cooling systems in the greenhouses. The floriculture business requires a considerable amount of investment and energy.

 

Fruit farming

Agriculture is the primary source of employment in Himachal Pradesh, and the fruit cultivation business is one of the best options for the startup. The vast tracts of land available in Himachal are perfectly suitable for growing fruits. Fruits farming is profitable and good for the environment as it helps prevent soil erosion and provides employment to the people. To set up a fruit farming business, you need a reasonable investment.

 

Photography

Shimla has beautiful views, and the natural beauty of Shimla attracts a lot of tourists. You can set up a photo studio in Himachal Pradesh. Many people prefer Himachal Pradesh for their pre-wedding photoshoot or destination wedding so by setting up a photo studio in Himachal Pradesh there are more chances of getting hired by them. Besides this, photographers work as freelancers, so if you are someone who likes to be their boss, then the photography business is undoubtedly meant for you.

 

Restaurant

If you have any idea about traditional Himachali food, you should open a restaurant in Himachal Pradesh. The traditional cuisine of Himachal Pradesh is very famous among tourists, so by opening a restaurant in Himachal, you will be able to express the Himachali culture to other people. For setting up a restaurant, you need a lot of capital for investment, and you should be able to run the business for at least six months without any profits.

 

Transport

Being a famous tourist site Himachal Pradesh attracts a lot of tourists. You can start a transport business in Himachal Pradesh and rent a two-wheeler or four-wheeler to tourists for exploring the state. Generally, the tourist prefers to explore the state in two-wheelers to enjoy the natural beauty of Himachal Pradesh to its fullest. For setting up transport businesses in Himachal Pradesh, you need reasonable investment, and you can start this business with two or three vehicles.

 

Hotel

Tourism is among the main sources of income and employment in Himachal Pradesh, so opening a hotel business for tourists is a good idea. People visit Himachal Pradesh for tourism, religious tourism, Heritage tourism, Eco tourism, and adventure tourism. So, opening a hotel in Shimla will help you in making huge profits. For setting up a hotel in Himachal Pradesh, you need a lot of investment, but once the business is established, it will be profitable. The government of Himachal Pradesh is also promoting tourism in the state which means that more tourists will come to Himachal Pradesh in search of hotels. Besides this, the state government exempts you from luxury tax if you open a hotel in the tribal area of Himachal Pradesh.

 

Salient Features of GeM portal in Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal Pradesh

i. Buyer – The organizations who are eligible to register as a Buyer and are authorized to procure goods from the GeM portal in Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal Pradesh. Any of the following may be registered as a seller on the GeM portal in Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal Pradesh:

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

 

Process of GeM Seller Registration Online in Shimla, Himachal Pradesh

Process of GeM Seller Registration Online in Shimla, Himachal PradeshStep 1 – Access the GeM portal in Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal Pradesh

Benefits of GeM Portal in Shimla, Himachal 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 Shimla, Himachal 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 Shimla, Himachal 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.