GeM portal set to break records with ₹3.5 trillion purchases in FY24

 – Gudstory

GeM portal set to break records with ₹3.5 trillion purchases in FY24 – Gudstory

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In FY23, the purchase price was crossing 2 trillion 1.06 trillion in the last financial year. It is expected to exceed this in FY24 3.5 trillion, GeM Chief Executive PK Singh said at a press conference.

Central Public Sector Enterprises (CPSEs) are driving GeM market with higher purchases 1 trillion in April-November, showing an increase of 166% from a year earlier, according to an official statement.

The GeM portal, launched in August 2016, facilitates online procurement of goods and services for all ministries and departments of the Central Government. Currently, the portal covers 133,549 primary buyers, 205,737 secondary buyers and 11,897 registered product categories.

According to GeM portal data, order volume in FY23 stood at 5,036,510, while order value was more than 2 trillion. During April-November 2023, the portal reported an order volume of 3,717,387, which is more than 2 trillion.

CPSE procurement on the portal accounts for about 63% of GeM’s gross merchandise value (GMV), with 245 CPSEs actively participating. According to the statement, the top five contributors for this financial year in terms of value include Coal India, National Thermal Power Corporation (NTPC), Steel Authority of India (SAI), Bharat Dynamics and Bharat Heavy Electricals Limited (BHEL). By December 10, NTPC, a subsidiary of the power ministry, had placed orders worth more than Singh said, Rs 40,000 crore for mine development and operation services

During this period, handling and transportation services emerged as the second most trending services. CPSEs operating under the Coal Ministry were the leading buyers with cumulative expenditure According to the statement, Rs 30,000 crore.

The portal offers a wide range of products from office stationery to vehicles, with key product categories including automobiles, computers and office furniture. At present, Government Departments, Ministries, Public Sector Units, State Governments and Central Armed Forces are authorized to conduct transactions through this portal. Additionally, GeM includes a number of services such as transportation, logistics, waste management, webcasting and analytics.

So far in FY24, substantial purchase orders have been placed by Uttar Pradesh, Gujarat, Maharashtra, Delhi, Madhya Pradesh, Jammu & Kashmir, Odisha, Bihar, Assam and Uttarakhand. “GeM’s expansion into the services sector has played an important role in accelerating its adoption,” Singh said. He said the contribution of the services sector in procurement has increased from 23% in 2021-22 to about 50% so far this financial year.

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Published: 14 Dec 2023, 10:10 PM IST

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