Defense Ministry procurement via GeM portal surpasses Rs 1 lakh crore mark
Since its inception, GeM has witnessed accelerated adoption by the defence sector
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New Delhi: The Ministry of Defence (MoD) has achieved a significant milestone in procurement, surpassing Rs 1 lakh crore through the Government e-Market (GeM) portal. This achievement reflects a robust commitment to streamlining public spending within the defence sector.
Launched on August 9, 2016, the GeM portal serves as a central platform for the online procurement of goods and services by various central government ministries and departments. According to a statement from the commerce ministry, MoD's utilization of GeM spans from acquiring general store items like eggs to critical defence acquisitions, totalling over 5.47 lakh orders. Notably, transactions worth approximately Rs 45,800 crore have been awarded in the current fiscal year alone.
GeM Chief Executive Officer P K Singh highlighted MoD's pioneering role as the first central government entity to surpass the Rs 1 lakh crore mark in procurement via the portal. He emphasized that around 50.7% of the total orders, amounting to Rs 60,593 crore, have been allocated to Micro and Small Enterprises (MSEs), showcasing a commitment to fostering SME participation in defence procurement.
Since its inception, GeM has witnessed accelerated adoption by the defence sector. The engagement of Defense Public Sector Undertakings (PSUs) on the GeM platform has not only streamlined procurement processes but also facilitated sales. With procurement through GeM projected to exceed Rs 4 lakh crore by the end of the fiscal year, the platform has become instrumental in enhancing efficiency and transparency in government procurement practices.
GeM boasts over 63,000 government buyer organizations and more than 62 lakh sellers and service providers, offering a diverse array of products and services. From office stationery to vehicles, GeM caters to various procurement needs across government entities. Additionally, the platform includes a wide range of services, including transportation, logistics, waste management, and analytical services.
While GeM currently ranks third globally among such platforms, after South Korea's KONEPS and Singapore's GeBIZ, its continuous growth underscores its pivotal role in revolutionizing government procurement practices.
