GeM - Defence Ministry is top procurer; contributes 16% of GMV
Published: Sep 15, 2023
By TIOL News Service
NEW DELHI, SEP 15, 2023: THE Ministry of Defence has emerged as the leading Ministry amongst a total of 56 Ministries/Departments participating in the Government eMarketplace (GeM), holding the top position in both order value and order quantity. Since its inception, the Ministry has contributed significantly to the Gross Merchandise Value (GMV) of GeM, which has reached an impressive Rs. 73,225.30 Cr as of 12 September 2023.
In the current financial year, the procurement through GeM has already reached an impressive Rs. 18,790.60 Cr as of 12 September 2023. The order value of the Ministry in fiscal year 2022-23 was Rs, 28,732.90 Cr, while it amounted to Rs 15,091.30 Cr in the fiscal year 2021-22. Under the aegis of the Department of Defence Production, the Defence Public Sector Undertakings (DPSUs) had sold Goods and Services worth Rs. 2,642.66 Cr on GeM in FY 2022-23.
The significant milestone of procuring goods and services worth over Rs. 18,000 Cr, underscores an outstanding average daily order value of Rs 109 Cr 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.
The Ministry of Defence's contribution to the overall GMV of GeM has consistently remained strong, standing at approximately 15% since its inception and increasing to 16% 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% 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.
