India’s central public sector enterprises (CPSEs) have contributed a significant 63 per cent of the total gross merchandise value of Government e-marketplace (GeM), surpassing INR 1 lakh crore in just 6.5 months of FY 2023-24. This marks 166 per cent increase in the CPSEs’ share of the total order value transacted through the platform in the April to November period of FY23, driven by tailored solutions provided by GeM to accommodate complex procurement.
There has been a consistent rise in the procurement of services by CPSEs with an increase from INR 37,600 crore (approx.) in FY 22-23 to INR 66,550 crore (approx.) in FY 23-24 (between April–November 2023). More than 240 CPSEs have emerged as pivotal contributors and actively engaged with GeM. In FY 22-23, GeM recorded and achieved an annual GMV of more than INR 2 lakh crore. In FY 23-24 alone, the sole procurement of CPSEs through GeM is projected at INR 2 lakh crore – nearly doubling its performance from the last fiscal year.
The online marketplace 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. In
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 while in insurance services, GeM offers a large portfolio which is beneficial as GeM mandates all IRDA-approved insurance companies to directly sell insurance cover sans intermediaries like brokers and agents. Others include IT services, local chemist empanelment and medical services.
The CPSEs under Ministry of Coal, Ministry of Power, Ministry of Steel and Ministry of Heavy Industries have emerged as the top procurers in the current financial year with NTPC being awarded multiple orders for procurement of Mine Development and Operations Services, valued at more than INR 40,000 crore. Handling and transport services have emerged as the second highest trending services in this period led by CPSEs under the Ministry of Coal which have emerged top procurers of this service, with a total spending of INR 30,000 crore. Forty CPSEs have registered as sellers on GeM since 2021 and of these, 43 CPSEs have successfully fulfilled orders amounting to nearly INR 23,800 crore.
