Rs. 6744 Crore Procurement was Done by MHI Through GeM

Ministry of Heavy Industries (MHI) organized a webinar on ‘Public Procurement through Government-e-Marketplace (GeM)’ yesterday, as a part of peer learning process to accomplish the vision of the Prime Minister, Shri Narendra Modi for establishing an inclusive, efficient, and transparent technology driven ecosystem to facilitate public procurement activities of Ministries, Attached Offices, Autonomous Bodies (ABs) and CPSEs in a fair and competitive manner. Secretary, Ministry of Heavy Industries, Shri Kamran Rizvi, while presiding the webinar, mentioned about the direction of the “Committee of Secretaries” to ensure 100% of the procurement of available goods and services through GeM.

He mentioned that the Ministry of Heavy Industries and its CPSEs are one of the key users of GeM. In FY 2022-23, a total of Rs. 6744 Crore procurement was done by MHI including CPSEs & ABs, with GUR of 130% and also ranked among the list of top buyers. BHEL, a Maharatna under MHI, contribution constitutes approx. 92% of procurement through GeM under MHI. He also mentioned that GeM has facilitated better efficiencies, transparency, inclusivity, and a higher level of trust among bidders, resulting in better competition and higher savings. He directed the CPSEs & ABs lagging behind to utilise the full potential of the GeM ecosystem for obvious advantages.

The event was also attended by Additional Secretary and Financial Advisor, MHI, Ms. Arti Bhatnagar, Advisor (PPD), Department of Expenditure, Shri Sanjay Aggarwal, CMD, BHEL, Dr. Nailin Shinghal, Additional CEO, GeM, Shri Prakash Minrani and Director (E,R&D), BHEL,Shri J. P. Srivastava who spoke on the various aspects related to Public Procurement through GeM. The webinar was well-attended by officials of MHI, CPSEs and Autonomous Bodies under MHI from more than 200 screens.

The Ministry of Heavy Industries has ranked as  one of the top procuring Ministries with a Gross Merchandise Value (GMV) of Rs. 6744 crore and GeM Utilisation Ratio (GUR) of 130% in the FY 2022-23. BHEL, a Maharatna under MHI, has also ranked amongst the top procuring PSU in the CPSE category with GMV of Rs. 6189 Crore and over-all GUR of 133%.

In FY 2022-23, GeM has recorded a GMV of Rs. 2 lakh crore approx., with exponential rise every year from Rs. 6 thousand crore in FY 2017-18. Cumulatively, it has surpassed the GMV of Rs. 3.9 lakh crore with the overwhelming support of its stakeholders. Based on various studies, the minimum savings on the platform are about 10%, which translates into a savings of Rs. 40,000 crore worth of public money.

GeM has been consistently adding new features to enable better services such as Running Contracts, Single Packet Bidding in Services, Push Button Procurement, etc. on its platform to bring more transparency, inclusivity, and optimisation of process time.

Subject specific presentations by BHEL and GeM were also made on the occasion to apprise field users of the latest developments enabling them for better GeM platform utilisation.