Public procurement via GeM expected to cross Rs 2 trillion-mark in FY23

The Government e-Marketplace (GeM) portal is expected to almost double its gross merchandise value (GMV) to Rs 2 trillion in FY23, having already surpassed the Rs 1.5 trillion mark last week. In FY22, the GMV of GeM was Rs 1.06 trillion.

Cumulatively, GeM has surpassed GMV worth Rs 3 trillion since its inception in 2016 and the number of transactions on GeM has exceeded 13 million.

“About Rs 12,000 crore worth transactions are already in the pipeline and by the end of the financial year, GeM is expected to achieve its target of Rs 2 trillion,” Prashant Kumar Singh, director and chief executive officer of GEM, told reporters on Wednesday.

Singh said minimum savings on the platform are about 10 per cent, which translates into a savings of over Rs 30,000 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.

Among the CPSEs that procured the most via GeM are NTPC (Rs 22,159 crore), Steel Authority of India (Rs 8,083 crore), Indian Oil Corporation (Rs 7,404 crore), BHEL (Rs 5,235 crore), and ONGC (Rs 5,064 crore) in FY23 until February 5.

The top five central ministries (including respective CPSEs & allied bodies) in terms of GMV are power (Rs 25,544 crore), defence (Rs 22,081 crore), petroleum & natural gas (Rs 21,646 crore), steel (Rs 10,518 crore) and health & family welfare (Rs 6,041 crore).

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.