GeM (Government e-Marketplace) The government’s online marketplace, and the purchase rules that come with it.
Short answer. GeM (Government e-Marketplace) is the national public procurement portal on which Indian government buyers purchase common-use goods and services online. It is run by GeM SPV, a 100% government-owned Section 8 company set up under the Department of Commerce, and offers e-bidding, reverse e-auction and demand aggregation. Rule 149 of the General Financial Rules, 2017, as updated to January 2026, makes purchase through GeM mandatory for ministries and departments where the goods or services are available on it. The thresholds: direct purchase from any qualifying seller up to ₹50,000; purchase from the lowest-priced seller among offers from at least three manufacturers up to ₹10,00,000; and mandatory bids or reverse auction above that. Central and state bodies, public sector undertakings, autonomous institutions and local bodies buy on GeM. For AI products, it means the GeM listing and the specification decide who can compete.
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Rule 149 thresholds
Order value
How the buyer purchases on GeM
Up to ₹50,000
Directly from any available seller meeting the quality, specification and delivery period (up to ₹1,00,000 for the scientific ministries and institutions the rule lists)
Above ₹50,000, up to ₹10,00,000
From the seller with the lowest price among offers from at least three different manufacturers; online bidding or reverse auction may also be used
Above ₹10,00,000
From the lowest-priced seller after mandatory bids or reverse auction on GeM
Any value
A demand must not be split into small purchases to avoid these steps (rule 149(viii))
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What this means for buying AI
Because rule 149 makes GeM purchase mandatory for what is available there, an AI appliance or software service is easiest for a ministry to buy when it is listed in a matching category. Buyers can check that a price is reasonable using GeM’s business analytics tools, including the last purchase price (rule 149(vii)). Purchases above ₹10 lakh go to bidding or reverse auction, so the specification decides who can compete.
Rule 149(vi) also asks departments to choose an OPEX or CAPEX model at budget time. That matters for AI: cloud subscriptions and owned hardware sit in different budget lines. For purchases outside GeM, the other GFR rules apply (rule 149(v)).
03
Checklist for a public office buying AI on GeM
Write the specification around outcomes and data handling: where data is processed, logs, named users and export formats.
Check that the product is listed in the right GeM category, and who the original manufacturer is.
Include installation, training, warranty and an annual maintenance contract in the evaluated cost.
State acceptance tests in the bid: transcription in the languages you use, and answers cited to your documents.
Check exit terms: return and deletion of data when the contract ends.
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A note on ANVE
ANVE is pre-release, with no delivery date and no final price, so any conversation with a public office today starts with a free demo call.
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Questions people ask
Is buying on GeM compulsory?
For central ministries and departments, rule 149 of the General Financial Rules makes procurement through GeM mandatory for goods or services available on it.
What is the direct purchase limit on GeM?
₹50,000 per purchase from any available seller meeting the requirements, or ₹1,00,000 for the scientific ministries and institutions the rule lists, under GFR rule 149(i) as updated to January 2026.
Who runs GeM?
GeM SPV, a 100% government-owned Section 8 company set up under the Department of Commerce, Ministry of Commerce and Industry.
Can a department buy an AI product that is not on GeM?
Rule 149 applies to goods and services available on GeM; for purchases outside GeM, the other General Financial Rules apply, as rule 149(v) says.
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What is not real yet
No sealed ANVE unit exists; every image of the appliance on this site is a labelled render. The software runs today on a development machine. No customers yet, no certifications, no delivery date, and the final price is not announced.
Reservations are ₹999 in India or US$12 elsewhere, refundable in full until you confirm an order in writing (terms). Offices that cannot use cloud AI can apply to be one of ten design partners.
