Indian Army adjudged best organisation in Ministry of Defence for procurement on GeM in financial year 2022-23
Jun 26, 2023
New Delhi [India], June 26 : The Indian Army has been adjudged as the best organisation in the Ministry of Defence (MoD) for procurement on Government e-Marketplace (GeM) for the financial year 2022-23 in pursuance of the PMO's overarching objective to enhance transparency, efficiency and speed in public procurement, read the press release of the Indian Army.
"#IndianArmy has been adjudged as the best organisation in the Ministry of Defence #MoD for procurement on Government e-Marketplace #GeM for the financial year 2022-23. Lt Gen MV Suchindra Kumar #VCOAS received the prestigious award on behalf of the #IndianArmy today at #NewDelhi. #IndianArmy remains committed towards achieving transparency, efficiency and inclusivity in public procurement in line with the #DigitalIndia initiative of the Nation. #IndianArmy #OnPathToTransformation," tweeted the Indian Army.
Since the inception of GeM (Government e-Marketplace), Indian Army has been earnestly working towards 100 per cent procurement of all goods & services. In FY 2016-17, the Indian Army procurement of Rs 21 Cr, and since then, Army has progressively enhanced its procurement potential by proactively engaging GeM SPV, various budget holders, and CFAs down to the unit level.
The concerted efforts of all entities have manifested in the exponential increase in procurement in successive years. The Indian Army received the Platinum Award for being the top organization (Central Cat) in Gem proc.
It achieved the highest value of proc in terms of order value, vol & distinct cat amongst all buyers in the MoD and also amongst all other Gol Ministries/Depts.
Additionally, procurement of approx Rs 9100 Cr against the stipulated target of Rs 6500 Cr which is approx 160 per cent growth compared to last FY. The exponential increase of approx Rs 4500 times in the last five years from Rs 21 Cr in FY 2016-17, added the release.
The Indian Army achieved a top position in spite of challenges like - the requirement for intermittent Internet accessibility in remote areas locations; training of manpower needed down to subunit levels for expeditious procurement; promulgation of policies and incorporation of the same concurrently in the ongoing procurement processes.
Additionally, to ensure transparent, fair and competitive bidding to achieve better value for money it requires adherence to the latest policies like MII, MSME, while optimum utilization of funds.
Approximately 16000 buyers of the Indian Army are registered on the GeM. On an average 60- 80000 transactions per month took place with up to a maximum of two lakh tons in a month in Mar 2023 in FY 2022-23, added the release.
As per the assessment of the World Bank, the average saving in the GeM portal is about 9.75 per cent of the median price.
Maximum procurement took place through 'Competitive Bidding' which is 80 per cent through Bid/Reverse Auction (RA) and 20 per cent through Direct Procurement, added the release.
The savings accrued to the state exchequer will ensure optimum utilization of the budget, increased preference for MSEs in consonance with the Gol policy, impetus to automation and digitization in proc and fin domain in consonance with Gol policies on e-Governance, enhanced transparency, traceable audit trail, and real-time monitoring leading to better budget mgt in Indian Army, added the release.
It will also contribute towards the local economy, especially in the remote/forward areas and will transform proc in Army by driving inclusion, ease of doing business, efficiency, and cost saving.
It further aims to achieve 100 per cent procurement of goods and services available on GeM and the procurement target for FY 2023-24 is raised to Rs 10,000 Cr and is expected to be Rs 15000 Cr due to onboarding of maximum goods and services.
