Hon'ble prime minister, based on recommendations of the group of secretaries, decided to set up a dedicated e market for different goods & services procured by government organisations / departments / psus. This meant transforming dgs&d to a digital ecommerce portal for procurement and selling of goods and services. Government e marketplace (gem), created in a record time of five months, facilitates online procurement of common use goods & services required by various government departments / organisations / psus. Gem aims to enhance transparency, efficiency and speed in public procurement. It provides the tools of e-bidding, reverse e-auction and demand aggregation to facilitate the government users, achieve the best value for their money. Government of india (allocation of business) rules, 1961, vide notification dated 8th december 2017  (pdf size:1.55mb) has made the following entry 32. Development, operation and maintenance of national public procurement portal—government e marketplace”.

The purchases through gem by government users have been authorised and made mandatory by ministry of finance by adding a new rule no. 149 in the general financial rules, 2017.