New Delhi (IANS) The finance ministry on Friday approved the creation of government e-marketplace (GeM) for commonly used goods and services.

“The GeM would be dynamic, self-sustaining and user friendly. The procuring authorities will ensure that the price of the selected offer is reasonable,” the finance ministry said in a statement, adding it has added a new rule in the general financial rules(GFR) on the request of the department of commerce for the proposed GeM.

Government buyers can make direct on-line purchases up to Rs.50,000 through any of the available suppliers on the GeM, meeting the requisite quality, specification and delivery period, it said.

For purchases above Rs.50,000, they will have to go through the supplier having lowest price amongst the available suppliers on the GeM.

“The e-marketplace will also provide tools for online bidding and online reverse auction which can be used by the purchaser,” the statement said.