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Tuesday, July 15, 2025 3:58 AM

Fiscal Year

Delhi Health Department Urges Action on Rs 90-Cr Dues to Drug Suppliers

News on Health

The Delhi health department is under pressure to address the issue of pending payments totaling Rs 90 crore to pharmaceutical drug suppliers. Despite directives issued 45 days ago, no significant action has been taken yet. SK Jain, the special secretary of the Health and Family Welfare Department, has directed the Directorate General of Health Services (DGHS) and the Central Procurement Agency (CPA) to expedite the processing of payment files from medicine suppliers. This directive comes after a report highlighted the impact of delayed payments on medicine supply. Jain emphasized that the pending files must be processed promptly, except those blacklisted. Failure to address this issue could severely affect medicine procurement in the current financial year. The letter issued by Jain also calls for a submission of pending files along with reasons for non-payment within three days. This will enable the initiation of appropriate action against defaulting officers. The delay in payment has resulted in a significant portion of the budget remaining unutilized in the previous financial year, leading to potential procurement challenges in the current fiscal year. An official from the Central Procurement Agency revealed that nearly Rs 84 crore of the budget has lapsed, exacerbating the financial strain on suppliers awaiting payment.

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Government e-Marketplace (GeM) Achieves Rs 2 Trillion GMV in 8 Months, Resulting in Rs 45,000 Crore Savings

In less than eight months of the current fiscal year, the Government e-Marketplace (GeM) has achieved a significant milestone by surpassing a Gross Merchandise Value (GMV) of over Rs 2 lakh crore. This exceeds the GMV recorded at the end of the previous fiscal year (2022-23). The average daily GMV has also experienced substantial growth, reaching over Rs 850 crore in the current financial year. A noteworthy aspect of this achievement is the substantial contribution of Central entities, including Central Public Sector Enterprises (CPSEs), which constitute an impressive 83% of the total GMV. The active participation of State Governments, making up the remaining 17%, highlights the widespread adoption of GeM’s transformative impact on public procurement. Several states, including Uttar Pradesh, Gujarat, Maharashtra, Delhi, Madhya Pradesh, Jammu & Kashmir, Odisha, Bihar, Assam, and Uttarakhand, have placed significant procurement orders. The collaboration between Central and State entities showcases a harmonious synergy that has propelled GeM to unprecedented success. GeM’s expansion into the services sector has played a pivotal role in driving its accelerated adoption, with the services segment experiencing exponential growth over the last three years. The services sector’s contribution to the total order value on the platform has surged from 23% in FY 21-22 to nearly 46% in the current financial year. This accomplishment reflects not only the platform’s rapid growth but also its crucial role in transforming public procurement throughout India. GeM’s commitment to fostering efficiency and transparency in procurement processes has enabled government agencies to access a diverse range of products and services in a streamlined and cost-effective manner. With a catalog featuring nearly 312 service categories and over 11,800 product categories, GeM caters effectively to the dynamic requirements of government buyers at all levels. Since its inception, GeM has surpassed a cumulative GMV of Rs 5.93 lakh crore, with over 1.8 crore transactions. GeM’s dedication to inclusivity and accessibility is evident in its integration with e-Gram Swaraj, streamlining Panchayat-level procurement and optimizing costs at the grassroots level. This approach showcases GeM’s influence on India’s procurement landscape, particularly in addressing the unique contexts and limitations of marginalized seller segments such as small and medium enterprises, women entrepreneurs, startups, and artisans. Nearly 49% of the total order value transacted through the platform has been awarded to MSEs. In just seven months, over 45,000 MSEs have registered as sellers/service providers on GeM. GeM’s success lies in its commitment to cost savings, contributing to government savings of over Rs 45,000 crore since 2016. According to the Economic Survey 2021-22, GeM’s prices were 9.5% lower than other online platforms for 10 out of 22 commodities. GeM’s transformative journey reflects transparency, efficiency, and inclusivity driven by cutting-edge technology and innovation.

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