BDL And BEL's Rs 4,415 Crore Akash Missile Systems Deal Marks High Point For Defence Procurement On Government E-Marketplace

The government e-marketplace (GeM) has facilitated a collaboration between defense PSUs Bharat Dynamics Ltd (BDL) and Bharat Electrical Ltd (BEL).

This collaboration aims to procure radars and other sub-systems for Akash missiles worth Rs 4,415 crore.

Sources at GeM of a high level have informed Businessline that BDL, the producer of Akash missiles, has obtained radars and a ground support system from BEL.

The Ministry of Defence's procurement via the Government e-Marketplace (GeM) is experiencing an upward trend.

As per GeM data, by 18 December of financial year 2023-24, the procurement reached Rs 34,907 crore, a considerable increase from the Rs 28,732.9 crore recorded in FY23, The Hindu Businessline reported.

The goal is to reach a procurement value of Rs 50,000 crore by 31 March.

Previously, the defense PSUs were solely purchasing via the online portal, however, they have now begun to sell items as well.

The merchandise traded on this digital platform encompasses simulators, drones, bulletproof vests, and ballistic helmets.

Eight Defence Public Sector Undertakings (DPSUs) reported sales of defence products amounting to Rs 9,840 crore.

Bharat Electronics Limited (BEL) accounted for the highest DPSU sales this fiscal year, with a total of Rs 5,226 crore.

In comparison, Bharat Earth Movers Limited (BEML Ltd) generated about Rs 1,367 crore, Bharat Dynamics Limited (BDL) around Rs 281 crore, Mishra Dhatu Nigam Ltd approximately Rs 264 crore, and Munitions India Ltd close to Rs 159 crore.

Besides the savings on transaction level, there are substantial advantages associated with an end-to-end digital journeys at GeM.

These include lower advertising and printing expenses, decreased travel costs, and savings on maintaining in-house portals and larger teams.

The Government e-Marketplace (GeM) has initiated specific measures to ensure the Ministry of Defence's (MoD) satisfaction.

Officials have stated that they are promoting the use of custom bids to procure items not available on the GeM via the same governmental platform.

The GeM provides customers with the option to reject items they are not satisfied with or due to quality concerns, and facilitates pre and post-dispatch inspections of goods by the Director General of Quality Assurance and labs accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL).

Furthermore, the Controller General of Defence Accounts (CGDA) ensures timely online payment of bills, contributing to a 99 per cent satisfaction rate.

Officials noted that out of over 50 lakh orders processed through the GeM, less than 0.5 per cent were rejected at the Consignee Receipt and Acceptance Certificate (CRAC) stage.

Officials of the GeM have stated that they ensure 25 per cent of the orders are directed to MSMEs.

For example, in this fiscal year, MSMEs received work orders worth Rs 87,000 crore until 15 November, accounting for approximately 61 per cent of the total business.

In compliance with government directives, the GeM is urging ministries to consolidate the needs of various organizations for identical items, such as boots for tri-services.

The aim is to reap the advantages of bulk purchasing. This consolidation is facilitated through the Demand Aggregation Module.