GeM facilitates Rs 2,200 cr asset disposal for govt entities in 4 years

The Government e-Marketplace (GeM) has emerged as a cornerstone of India's e-governance initiatives, initially designed to streamline public procurement. However, its recent success in facilitating the disposal of government assets worth Rs 2,200 crore over the past four years signifies a crucial expansion of its mandate and impact. This evolution from primarily a buying platform to also an efficient selling mechanism underscores the government's commitment to optimal resource utilization, transparency, and fiscal prudence.

Historically, the disposal of government assets, ranging from obsolete machinery and scrap to vehicles and even real estate, was often a convoluted, time-consuming, and sometimes opaque process. Traditional methods frequently involved manual tenders, limited reach to potential buyers, and a higher risk of inefficiencies or even corruption. This led to delays in monetizing depreciating assets, accumulation of junk, and a less-than-optimal return for the exchequer. The push for digital transformation, spurred by the 'Digital India' initiative launched in 2015, provided the impetus for platforms like GeM to not only simplify procurement but also to address these long-standing issues in asset disposal.

What precisely happened is that GeM leveraged its digital infrastructure to implement a 'forward auction' mechanism. Unlike a reverse auction (common in procurement where bidders offer lower prices), a forward auction involves government departments selling their assets to the highest bidder. This digital bidding process ensures a wider reach to potential buyers across the country, fostering competitive bidding and ensuring fair market value for the assets. The types of assets disposed of are diverse, encompassing everything from electronic waste (e-waste) and metal scrap to old vehicles, machinery, and even leasehold properties like buildings and land. This comprehensive approach ensures that various government entities, including Central Ministries, Departments, Public Sector Undertakings (PSUs), and State Governments, can effectively offload their surplus or obsolete holdings.

Key stakeholders involved in this process are primarily the **Government e-Marketplace (GeM)** itself, which provides the technology platform and framework; the numerous **Government Departments and Public Sector Undertakings (PSUs)** at both central and state levels, who are the sellers of these assets; and a diverse pool of **buyers/bidders**, which can include private businesses, recyclers, individuals, and other entities looking to acquire these assets. The **Ministry of Commerce and Industry**, under which GeM operates, plays a crucial oversight role, while the **Ministry of Finance** and the **Department of Public Enterprises (DPE)** are also indirect stakeholders through their policies on public finance management and asset monetization.

This development holds immense significance for India. Firstly, it champions **economic efficiency** by ensuring that idle or depreciating government assets are monetized effectively, generating non-tax revenue for the exchequer. This revenue can then be channeled into welfare schemes or developmental projects. Secondly, it drastically enhances **transparency and accountability** in government transactions. The digital nature of forward auctions minimizes human intervention, reduces discretion, and provides an auditable trail, thereby curbing potential corruption – a critical aspect of good governance. Thirdly, it contributes to **environmental sustainability** by facilitating the proper disposal and recycling of e-waste and scrap, aligning with circular economy principles. Lastly, it streamlines the process, leading to **ease of doing business** for both government entities and private buyers, fostering a more dynamic economic environment. This aligns with broader government policies aimed at improving India's global ranking in ease of doing business.

From a constitutional perspective, while there isn't a direct article mandating asset disposal via e-platforms, the underlying principles are rooted in **Article 282** of the Indian Constitution, which deals with the power of the Union and States to make grants. More directly, the **General Financial Rules (GFRs), 2017**, particularly **Rule 198 (Disposal of Goods)**, provide the framework for government departments to dispose of surplus or obsolete stores and equipment. GeM's forward auction mechanism provides a modern, compliant, and efficient tool to adhere to these rules. The initiative is also a practical manifestation of the 'Digital India' vision, aiming to transform India into a digitally empowered society and knowledge economy.

The future implications are promising. We can expect an even greater adoption of GeM for asset disposal across various government levels, potentially including urban local bodies and Panchayati Raj Institutions. The range of assets disposed of might further expand, and the increased revenue generation will undoubtedly strengthen government finances. This success story further solidifies GeM's role as a multi-faceted digital public good, contributing significantly to India's journey towards transparent, efficient, and digitally-driven governance. It also sets a precedent for other government functions to be digitized, fostering greater trust and efficiency in public administration.