MoD is top procurer on Government e-Marketplace (GeM) - Broadsword by Ajai Shukla - Strategy. Economics. Defence.

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Thursday 14 September 2023

MoD is top procurer on Government e-Marketplace (GeM)

Procurement through GeM exceeds over Rs. 18,790 crore in FY 2023-24


By Ajai Shukla

Business Standard, 15th Sep 23 


The Ministry of Defence (MoD) has emerged as the leading ministry out of 56 ministries/ departments that participate in the Government-e-Marketplace (GeM), holding the top position in both order value and order quantity. 


During the current financial year, (FY 23-24) the procurement through GeM has already reached an impressive Rs. 18,790.60 crore as of 12 September 2023.


The MoD’s order value in FY 22-23 was Rs 28,732.90 crore, while it was Rs 15,091.30 Cr in the FY 21-22. 


Under the aegis of the Department of Defence Production (DDP), the Defence Public Sector Undertakings (DPSUs) sold goods and services on GeM worth Rs. 2,642.66 crore on GeM in FY 22-23.


Since its inception, the MoD has contributed significantly to the Gross Merchandise Value (GMV) of GeM, which reached an impressive Rs 73,225.30 crore as of 12 September 2023.


The significant milestone of procuring goods and services worth over Rs 18,000 crore, underscores an outstanding average daily order value of Rs 109 crore in the current financial year. 


“The remarkable achievement in the current fiscal results from the active participation of more than 19,800 buyers across the country, collectively placing over 3 lakh orders,” said an MoD release on Thursday.


The MoD’s contribution to the overall GMV of GeM has remained strong, standing at approximately 15 per cent since its inception and increasing to 16 per cent for the current financial year. 


Furthermore, since inception, out of the 17,026,945 orders placed on GeM, the MoD has played a significant role, accounting for nearly 28 per cent of a total of 4,761,585 orders.


The GeM was started in August 2016 to revamp the old tender process and bring greater probity and transparency in government procurement through digitisation. In the last seven years since its inception, the MoD has been committed towards the digital drive. 


“The MoD’s impressive procurement through GeM underlines the platform’s effectiveness and efficiency in facilitating transparent and streamlined procurement operations. The widespread embrace of GeM by various defence entities further underscores its success in simplifying and enhancing the overall procurement landscape,” said an MoD statement.

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