The government expects the bill, which stood at Rs 17,325 crore in the fiscal year that ended on March 31, to jump to Rs 50,000 crores in this financial yearNew Delhi: The official procurement through the government’s e-marketplace for this financial year is expected to register a 65.35 percent jump, thanks to large scale purchase of goods and services by central public sector enterprises (CPSEs). The government expects the bill, which stood at Rs 17,325 crore in the fiscal year that ended on March 31, to jump to Rs 50,000 crores in this financial year. “PSUs are coming on GeM for big-ticket items. We expect the total procurement this financial year at Rs 50,000 crore,” said a source. He added that the government had asked PSUs in November last year to procure official supplies from Government e-marketplace (GeM).
The states that lead the way
The biggest procurement from GeM, which is India’s national public procurement portal meant for online purchase of goods and services by government organisations, was done by Uttar Pradesh, Madhya Pradesh and Maharashtra.
34,000 government organisations on GeM
Over 8.8 lakh products are available on the platform which is supplied by a network of over 2 lakh sellers and service providers. Around 34,000 government organisations, including Central, state governments and PSUs) are registered on the portal and procure products and services from there.
“Government wants to move away from capex to opex model of hiring rather than buying. We feel transactions worth Rs 5-6 lakh crore can come to GeM in 5-6 years,” the official said. The rejection rate for vendors on the platform is less than 1 percent.
The GeM was launched by the government on August 9, 2016, and it replaced the Directorate General of Supplies and Disposal (DGS&D). The portal was launched with a view to create an open and transparent procurement platform for government departments, ministries and organisations.
“MoUs have been signed with 12 banks for payment integration to facilitate a cashless and paperless payment system on the platform,” a statement released by the ministry said on Monday.
PSU Watch is a business news brand of 27 Frames Communications LLP. It places the spotlight on PSUs, Governance, Bureaucracy, Defence and Public Policy as the sector traverses through a period of radical change.