Government e-Marketplace Witnesses Remarkable Service Procurement Growth

Government e-Marketplace (GeM), India’s foremost online platform for government procurement, experienced a remarkable surge in transaction value, reaffirming its dedication to simplifying the procurement process and promoting efficiency and transparency in government acquisitions.

GeM’s Robust Growth in Service Procurement:

  • Transaction value surged from approximately INR 8,505 crore in FY 20-21 to INR 65,957 crore in FY 22-23.
  • Services sector contribution to GeM Gross Merchandise Value increased from 23% in FY 21-22 to nearly 47% in the current fiscal year.
  • GeM aims to exceed INR 1.50 lakh crore in the present fiscal year.

Key Government Buyers Involvement:

  • Leading CPSEs, including Coal India Limited, NTPC Limited, Oil and Natural Gas Corporation Limited, and Bharat Petroleum Corporation Limited, actively utilize GeM for service procurement.
  • Multiple states and union territories such as Gujarat, Uttar Pradesh, Delhi, Uttarakhand, and Punjab have adopted GeM as their primary platform for services procurement.

GeM offers a diverse range of services across multiple categories such as:

  • Manpower Outsourcing Services:
    With approximately 40,000 contracts placed for hiring manpower services in FY 22-23, the total contract value exceeded INR 14,000 crore.
  • Vehicle Hiring Services:
    A staggering 30,000 contracts were placed for hiring vehicle services in FY 22-23, with a total contract value exceeding INR 2,900 crore.
  • Handling, Transport & Other Mining Services:
    Major subsidiaries of Coal India Ltd. and NTPC Ltd. have placed numerous orders, with substantial order values. Approx. 175 Orders were placed by subsidiaries of Coal India Ltd. With total order value of INR 24, 558 Cr. for handling, transport & other Mining activities.
  • Insurance Services:
    GeM has also expanded its large portfolio of services offerings to include Insurance services. This service offering is particularly beneficial as GeM mandates all IRDA-approved Insurance Companies to directly sell insurance cover sans intermediaries like brokers and agents. Recently, Government of Gujarat placed an order for Group Mediclaim Insurance worth ₹ 2302 Crore under Pradhan Mantri Jan Arogya Yojana to provide health insurance cover to nearly 62 lakh families.
  • IT Services: Several key organisations and ministries have harnessed GeM for IT services for procuring complex IT services including core banking solutions and digital healthcare solutions.
  • Local Chemist Empanelment:
    Orders worth approximately INR 1038 crore have been placed by Central Government Health Schemes (CGHS) after empanelling Chemists at various medical centres across the country.
  • Medical Services:
    Contracts for hiring healthcare manpower placed for more than INR 1100 Cr. till date. Other medical services including Healthcare Sanitation Services, Ambulace services, Heathcare Kitchen and dietary services etc, are available on GeM.

GeM plays an active role in facilitating the execution of several government initiatives like the Jal Jeevan Mission, Mission Karmayogi, Swachh Bharat Abhiyaan, and Saksham Anganwadi and Poshan 2.0 Scheme. It achieves this by developing appropriate services tailored to support the successful implementation of these initiatives.

GeM has facilitated unique service orders such as:

  • Hiring of Chartered Aircrafts:
    The Ministry of Defence contracted 830 Chartered Aircraft for various routes, such as Leh, Srinagar, and Andaman & Nicobar for round-trip flights, totaling an order value of about INR 142 crore.
  • Air International Logistics Service:
    Munitions India Ltd., a part of the Ministry of Defence, commissioned an agency for the international transportation of roughly 24,000 kg of IMO Class-I Dangerous Goods from Sweden Airport to India, with an order value of around INR 3 crore.
  • Drone as a Service: Survey of India and Coal India Ltd. have utilized Drone as a Service (DaaS) for diverse applications, including surveying and aerial mapping.

Many other unique service offerings have also been facilitated by GeM under the service categories like leasing of High Value Medical Equipment, Market research/Survey, Examination Service, Cyber security services, Hiring of AV/VR Services for events etc.

GeM continues to drive high-value service bids in areas such as Hiring, Operation and Management of ATM, Energy Audit Service and GIS Survey – Drone Mapping.

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