Railways to ensure goods and services procurements through Government e-Market

New Delhi, July 26, 2020

The Indian Railways have said that they will ensure that their goods and services procurements are done through the Government e-Market (GeM) with the integration of the Railway Digital Supply Chain with GeM

The Railways procure goods and services more than Rs 70,000 crores annually.

Minister of Railways and Commerce & Industry Piyush Goyal reviewed the steps to promote Make in India products in the procurement process of Indian Railways as well as the Union Government.

During the meeting on Saturday, Goyal called for measures to generate confidence in the industry of corruption-free and transparent procurement environment on the Indian Railways.

While reviewing the steps to promote Make in India products in the procurement process, it was emphasised to increase the participation of local vendors. It was also decided to that local content clause in the procurement should be such that more bids were from local vendors/suppliers. This would also give a boost to mission Atmanirbhar Bharat (self-reliant India), he said.

The active support of the Department for Promotion of Industry and Internal Trade (DPIIT) was sought to make suitable policy revisions, if required, to facilitate the efforts of the Indian Railways in this direction.

It was felt that encouragement needs to be given to such vendors who can supply higher locally manufactured content. It was also suggested to create a FAQ section and a helpline number so that vendors may get clarity on various issues relating to the procurement process.

A detailed presentation was made by the Member (Materials Management), Railway Board on enhancing Make in India and steps being taken to procure through GeM along with the progress made.

The review meeting was also attended by Minister of State for Railways Suresh C Angadi, Railway Board Members, CEO of GeM and representatives of DPIIT, Ministry of Commerce.

The need for devising strategies for further increasing the participation of Indian service providers and component manufacturers was felt. Goyal said GeM is a highly innovative idea in public procurement, across the globe. He emphasised the need for Railway goods and services procurements on the GeM platform to open up the market to the industry even at remote places and especially MSMEs.

Indian Railways, one of the largest procurement agencies of the Government of India, is integrating its procurement systems with GeM to use GeM’s full potential. The department shared the timelines for the integration of Indian Railway e-Procurement system with GeM.

It emphasised the need to have a seamless integration of the two systems eliminating the need for any manual interface. Strength of both the systems i.e. Railways IREPS and GeM should be productively leveraged to generate synergy to take the Railways procurement to GeM’s full potential.

Post integration GeM is intended to move further in the direction of becoming a single point public procurement portal for all agencies of Government of India.

During the meeting, the ways and means to create a corruption-free public procurement environment in India were discussed in which the Ministry of Railways, DPIIT and GeM have extremely important roles to play. The need for engagement of industry for developing more indigenous vendors to participate in the growth journey of the Indian Railways was emphasised in the deliberations.

During the presentation, It was decided that the Railways would work more towards having a user-friendly single-step vendor web-based interface for all its activities. The website should, transparently, provide every interested vendor with a clear idea of how to do business with Indian Railways. The website should have all relevant information to generate the confidence of corruption-free and transparent environment on Indian Railways.


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