From procuring general store items like eggs, government e-marketplace (GeM) has now brought together defence PSUs Bharat Dynamics Ltd (BDL) and Bharat Electrical Ltd (BEL) for procurement of radars and other sub-systems for Akash missiles worth ₹4415 crore.
Highly placed GeM sources told businessline that BDL, which manufactures Akash missiles has procured radars and ground support system from the BEL.
The procurement by the Ministry of Defence through the GeM is on the rise. In FY 23-24, it went up to ₹34,907 crore till December 18, which is significantly higher than ₹28,732.9 crore achieved in FY 22-23, GeM data revealed. The aim is to clock ₹50,000 crore till March 31, sources stated.
Earlier, the defence PSUs were only buying through the online portal but they are now selling items too. The goods traded through the virtual platform include simulators, drones, bullet proof jackets and ballistic helmets.
Eight DPSUS sold defence items to the tune of ₹9,840 crore, sources pointed out. Of this, BEL sold the maximum goods and services this FY which came to ₹5,226 crore. Similarly, BEML Ltd did business to the tune of about ₹1,367 crore, BDL over ₹281 crore, Mishra Dhatu Nigam Ltd ₹264 crore, and Munitions India Ltd ₹159 crore.
Significant benefits
“Beyond the transaction level savings, there are also significant benefits reported due to end-to-end digital journeys at GeM, including reduced advertising costs, printing costs, travel costs, the cost of maintaining in-house portals and larger teams,” sources stressed.
The GeM has taken special initiatives to achieve MoD’s satisfaction. Use of custom bids is being encouraged to procure goods not available on GeM through the same government platform, said officials. With customers having the option of rejecting goods they don’t like or due to quality issues, the GeM enables pre and post-dispatch inspection of goods by the Director General of Quality Assurance and NABL-accredited labs. Other than that, timely online payment of bills by CGDA is also ensured which results in 99 per cent satisfaction rate, officials said. Of the 50 lakh+ orders through GeM, less than 0.5 per cent of orders were rejected at the Consigne Receipt & Acceptance Certificate (CRAC) stage, they observed.
The GeM, said its officials, also makes it a point that 25 per cent of the orders go to MSMEs. For instance, this FY ₹87000 crore work order went to the MSMEs till November 15, which is about 61 per cent of the total business.
Owing to the government instruction, the GeM is encouraging ministries to pool requirements of different organisations for the same products like boots for tri-services, so that benefits of large volume procurement can be accrued. This is being done through Demand Aggregation Module.