SOURCE: ANI
The Ministry of Defence (MoD) has crossed the milestone of Rs 1 lakh crore in total order value transacted through the Government e-Marketplace (GeM) portal since its inception. According to a press release by the Ministry of Commerce and Industry, this milestone, also known as Gross Merchandise Value (GMV), underscores MoD’s commitment to streamlining public spending in the Defence sector, setting a precedent as the first central government entity to achieve this feat.
The GeM portal has played a pivotal role in facilitating diverse procurement needs of MoD, ranging from general store items like eggs to critical defence acquisitions such as missile systems.
Transactions worth approximately Rs 45,800 Crore have been awarded by MoD via GeM in the current financial year alone, reflecting the platform’s effectiveness in expediting procurement processes and driving efficiency.
PK Singh, CEO, GeM, said, “The Ministry is the first central government entity to cross this staggering figure, exemplifying its resolute commitment towards optimising public spending in the Defence sector. This milestone underscores the effort and commitment of the Ministry of Defence to embrace the change and set out as a key propeller of Prime Minister Shri Narendra Modi’s vision of a self-reliant India.”
As per the press release, in line with GeM’s core value of maximizing social inclusion, 50.7 per cent of the total orders, amounting to Rs 60,593 Crore, have been awarded to Micro and Small Enterprises (MSEs) by MoD buyers, driving India’s economy closer to self-reliance.
Since its inception, MoD has been an early adopter of GeM. The immense trust placed in the portal by nearly 19,800 MoD buyers across the country, including remote far flung areas like North-Eastern States, Leh-Ladakh, and various Island Territories, have enabled it to bag this remarkable achievement, read the press release.
Furthermore, the engagement of Defence PSUs on the GeM platform has not only facilitated procurement but has also facilitated sales, marking a paradigm shift in the procurement landscape, read the press release.
Through initiatives like demand aggregation modules, GeM continues to deliver cost-effectiveness and efficiency in government transactions.
By consolidating requirements for similar products across different organizations, GeM maximizes the benefits of large-volume procurement, exemplifying its commitment to revolutionizing government procurement practices and driving transformative change.