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The Employees' State Insurance Corporation directs all field units to ensure 100 percent procurement through the GeM portal. The competent authority observes that field units procure major medical items outside GeM. This practice violates Rule 149 of GFR 2017. All ESI institutions must encourage local vendors for registration on GeM and organize vendor meetings. Institutions must use Custom Bid, BOQ, and Demand Aggregation functionalities when items are not available on GeM. Deans, Medical Superintendents, DIMS, and Directors must ensure compliance with these instructions.
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Headquarters, Employees' State Insurance Corporation Ministry of Labour & Employment, Government of India. Panchdeep Bhawan: C.I.G. Road: New Delhi - 110 002
ई-मेल/email: pc-hqrs@esic.gov.in
No. File No.: U-16011/34/2022-PC U-16011/34/2022-PC /111226
19-07-2025
To
Director (Medical) Delhi / Director (Medical) Noida Deans, All ESI PGIMSRs, Medical & Dental Colleges Medical Superintendents, All ESIC Hospitals DIMS, ESI Scheme, All States/UTs Regional Directors, ESIC-All States/UTs
Subject: Ensuring 100% Procurement through GeM Portal - reg.
Sir/Madam,
Reference is invited to the MOL&E OM dated 26.09.2022 and ESIC Hqrs. office letter No. U/16/30/792/2022-PC-Misc (855) dated-14.11.2022 (copy enclosed) wherein all field units were explicitly instructed to ensure 100% expenditure to be incurred through GeM for procurement of equipment and allied services.
Further, as per Rule 149 of GFR, 2017, the Procurement of Goods and Services by Ministries or Departments will be mandatory for Goods or Services available on GeM.
However, during a review meeting, it has been observed that a major portion of the medical items (Laboratory reagents/Lab Kits/Surgical Consumables/Suturing Material / Orthopaedic Implants and Drugs) has been procured outside GeM by the field units which has been viewed very seriously by the Competent Authority. It does not only violate the provisions of the GFR, 2017 but also defeats the purpose to maintain open and transparent system, fairness and competition in public procurement which ultimately leads financial loss to the organization and legal implications.
Therefore, it is once again reiterated to strictly adhere the provisions of Rule 149 of GFR, 2017 and to ensure 100% expenditure to be incurred through GEM for procurement of medical equipment and allied services.
All ESI institutions are instructed to make all possible efforts (encouraging local vendors for registration/onboarding on GEM, organizing vendor sensitization meetings etc.) for procurement of all medical items (Laboratory reagents/Lab Kits/Surgical Consumables/Suturing Material / Orthopaedic Implants and Drugs) through GEM.
In case a category of item is not available on GEM, ESI institutions may contact GEM for creation of categories.
If any equipment/item is not available on GEM (unless exempted), the same should be procured by under provisions of Custom Bid, BOQ, Demand Aggregation, inter-alia exploring other functionalities available on GEM from time to time for procurement of such items.
It is the sole responsibility of the Dean/MS/DIMS/D(M)D/D(M)N to ensure compliance of all instructions mentioned above.
This issues with the approval of Director General, ESIC for necessary compliance.
Yours Sincerely, Digitally signed by Sanjiv Kochhar (Dr. Sanjiv Kochhar) Dy. Medical Commissioner (PC/RC Cell)
Encl: As above
