Govt to eliminate price certification for purchases up to Rs. 1 lakh and introduce push button procurement system on GeM

The Center has decided to test push button procurement (PBP) for purchases up to Rs. 1 lakh through the Government eMarketplace (GeM) for government entities, offices, and PSUs.

PBP will rely on technology to determine valuation and eliminate the need for certification, relieving pressure on government departments, particularly infrequent customers who frequently make small value purchases. Government buyers must certify that the selected offer’s pricing is appropriate.

“It has come to the notice that sometimes especially infrequent government buyers find it difficult to certify reasonability of rates. They normally do not possess requisite skills in making procurement decisions. It delays the procurement process,” according to the Department of Expenditure.

Government purchases made through GeM up to Rs 1 lakh are exempt from price certification. The Center has agreed to test push button procurement (PBP) for purchases up to Rs. 1 lakh through the Government e-Marketplace for governmental bodies, offices, and PSUs.