Procurement via GeM crosses target of Rs 2 trillion on last day of FY23

The Government e-Marketplace (GeM) portal has almost doubled its gross merchandise value (GMV) to Rs 2 trillion in FY23, achieving its target on the last day of the financial year. In FY22, the GMV of GeM was Rs 1.06 trillion.

On March 30, GeM completed five million transactions in a single financial year for the first time ever.

Cumulatively, GeM has surpassed GMV worth Rs 3.9 trillion since inception in 2016 and the number of transactions has exceeded 14 million.

“The accomplishment of the target is a collective effort of the entire GeM team and the platform has also ensured transparency in the public procurement system,” Prashant Kumar Singh, director and chief executive officer of GEM, told Business Standard on Friday.

Singh said minimum savings on the platform are about 10 per cent, which translates into a savings of over Rs 39,000 crore worth of public money, so far.

The largest order worth Rs 20,400 crore placed on GeM until now is by NTPC for mine development and operations services, a unique category used for the first time on GeM.

Till date, among the CPSEs that procured the most via GeM are NTPC, Steel Authority of India, Indian Oil Corporation, BHEL and ONGC in FY23.

The top five central ministries (including respective CPSEs & allied bodies) in terms of GMV are power, defence, petroleum & natural gas, steel and health & family welfare.

The portal has reduced the turnaround time for awarding contracts and the percentage of cancelled tenders in comparison to state-specific portals, data released by GeM showed.

Cumulative procurement from micro and small enterprises on the portal stands at 55 per cent of total transacted on the portal.

In terms of value, Uttar Pradesh is the top state in procuring from the portal, followed by Gujarat, Maharashtra, and Madhya Pradesh.