The Ministry of Defence (MoD) has achieved a significant milestone by surpassing Rs.1 trillion in total order value processed through the Government e-Marketplace (GeM) portal.
In a statement released by the Ministry of Commerce and Industry, this achievement, also referred to as Gross Merchandise Value (GMV), highlights MoD's dedication to enhancing public spending efficiency in the Defence sector, marking it as the first central government body to reach this landmark.
The GeM portal has played a crucial role in managing various procurement requirements of MoD, ranging from everyday items like eggs to critical defence acquisitions such as missile systems. Transactions worth approximately Rs.45,800 crore have been conducted by MoD via GeM in the current fiscal year alone, showcasing the platform's effectiveness in expediting procurement processes and enhancing efficiency.
PK Singh, CEO of GeM, stated, "The Ministry's accomplishment in crossing this monumental figure underscores its unwavering commitment to optimizing public spending in the Defence sector. This achievement highlights MoD's dedication to embracing change and contributing significantly to Prime Minister Shri Narendra Modi's vision of a self-reliant India."
According to the press release, reflecting GeM's core value of promoting social inclusion, 50.7% of the total orders, amounting to Rs.60,593 crore, have been awarded to Micro and Small Enterprises (MSEs) by MoD buyers, thus bolstering India's journey towards self-sufficiency.
MoD has been an early supporter of GeM since its inception. The significant trust placed in the portal by nearly 19,800 MoD buyers across the nation, including remote areas like the North-Eastern States, Leh-Ladakh, and various Island Territories, has contributed to this remarkable achievement, as stated in the press release.
Moreover, the participation of Defence PSUs on the GeM platform has not only simplified procurement but has also facilitated sales, signaling a transformation in the procurement landscape, according to the press release.
Through initiatives such as 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, demonstrating its commitment to revolutionizing government procurement practices and driving transformative change.
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