Procurement of goods, services from GeM portal likely to touch Rs 3.5 trillion by end of FY24: P K Singh
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The government e-Market (GeM) CEO P K Singh has said that the procurement of goods and services from the government portal GeM is expected to touch Rs 3.5 trillion by the end of this fiscal (FY24) due to higher buying activities by various ministries and departments. In 2021-22, the procurement value stood at Rs 1.06 trillion. It crossed Rs 2 trillion last year. The GeM portal was launched on August 9, 2016, for online purchases of goods and services by all the central government ministries and departments.
Singh said that the share of central public sector enterprises (CPSEs) in the total buying of goods and services is increasing at a healthy rate. More than 245 CPSEs, including Coal India, SAIL, NTPC and SBI, are participating in the process. The top five undertakings that are procuring maximum in value terms this fiscal (till December 10) include Coal India, National Thermal Power Corporation, Steel Authority of India, Bharat Dynamics and Bharat Heavy Electricals. In just 6.5 months of 2023-24, procurement by CPSEs has surpassed Rs 1 trillion mark. Buying carried out by these units on GeM contributed about 63 per cent to total procurement.
He further said GeM's expansion into the services sector has played a pivotal role in driving its accelerated adoption. He also said that services sector contribution in the total procurement has increased from 23 per cent in 2021-22 to about 50 per cent this fiscal. The provisional procurement of goods and services from government portal GeM by the coal ministry and its affiliated public sector units has reached Rs 34,524 crore as on December 10 in the ongoing financial year.
