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Updated February 14th, 2024 at 17:30 IST

Defence Ministry made over Rs 1 trillion worth orders on Government's e-Marketplace

In line with GeM's commitment to promoting social inclusion, MoD has awarded 50.7% of total orders, totalling Rs 60,593 crore, to Micro and Small Enterprises.

Reported by: Business Desk
Ministry of Defence procurement
Ministry of Defence procurement | Image:Defence Minister Rajnath Singh
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Ministry of Defence procurement: The Ministry of Defence's (MoD) orders from Government e-Marketplace (GeM) portal have crossed the remarkable milestone of Rs 1 lakh crore mark. This achievement underscores the Ministry's commitment to optimising public spending in the Defence sector. The transactions, amounting to approximately Rs 45,800 crore, have been awarded in the current financial year alone. GeM has played a pivotal role in facilitating various procurement needs of the MoD, ranging from general store items like eggs to critical defence acquisitions such as missile systems, with over 5.47 lakh orders executed.

PK Singh, CEO of GeM, highlighted the significance of this milestone, and stressed the Ministry's dedication to embracing change and contributing to Prime Minister Narendra Modi's vision of a self-reliant India. MoD's proactive approach towards adopting GeM has made it the first central government entity to achieve this remarkable feat.

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In line with GeM's commitment to promoting social inclusion, MoD has awarded 50.7 per cent of the total orders, totalling Rs 60,593 crore, to Micro and Small Enterprises (MSEs). This significant allocation to MSEs is instrumental in driving India's economy towards self-reliance and fostering entrepreneurship in the Defence sector.

Since its inception, MoD has been an enthusiastic participant in GeM, with nearly 19,800 MoD buyers from various regions across the country, including remote areas like North-Eastern States, Leh-Ladakh, and various Island Territories. This widespread adoption of GeM has played a pivotal role in achieving this significant milestone.

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Moreover, the engagement of Defence PSUs on the GeM platform has not only streamlined procurement processes but has also facilitated sales, marking a notable shift in the procurement landscape of the Defence sector.

Through initiatives such as demand aggregation modules, GeM continues to enhance cost-effectiveness and efficiency in government transactions. By consolidating requirements for similar products across different organizations, GeM maximises the benefits of large-volume procurement for buyers like the Ministry of Defence, showcasing its commitment to revolutionising government procurement practices.

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Published February 14th, 2024 at 17:30 IST

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