Indian Army Executes First Capital Procurement via GeM Portal

In a major reform in defence procurement, the Indian Army has executed its first-ever capital procurement contract through the Government e-Marketplace (GeM).

The contract involves the procurement of 93 Telescopic Handlers under the Buy (Indian) category from JCB India Limited at a total cost of ₹25.90 crore. This marks a landmark shift towards digital, transparent, and efficient defence acquisition.

Procurement Details
ParameterDetails
PlatformGovernment e-Marketplace (GeM)
EquipmentTelescopic Handlers
Quantity93
Cost₹25.90 crore
Procurement CategoryBuy (Indian)
VendorJCB India Limited

Significance of Initiative

1. Transformation in Defence Procurement
  • First use of GeM for capital acquisition
  • Shift from traditional procurement to digital platforms
  • Ensures procedural integrity with speed
2. Faster Procurement Process
  • Expected to compress timelines significantly
  • Reduces bureaucratic delays
  • Enables quick availability of critical equipment
3. Transparency & Efficiency
  • Use of technology-driven platform
  • Enhances:
    • Transparency
    • Accountability
    • Cost-effectiveness
4. Boost to Aatmanirbhar Bharat
  • Promotes indigenous procurement (Buy Indian category)
  • Encourages domestic industry participation
  • Strengthens defence manufacturing ecosystem

Operational Importance of Telescopic Handlers

  • Used for:
    • Material handling in difficult terrains
    • Logistics operations in diverse environments
  • Benefits:
    • Reduces manual labour
    • Improves efficiency and speed
    • Enhances logistics capability of Army

Broader Defence Modernisation Push

  • Ministry of Defence (Feb 2025):
    • Contracts signed with: ACE Limited and  JCB India Limited
    • Procurement: 1,868 Rough Terrain Forklift Trucks (RTFLT)
    • Total cost: ₹697.35 crore

Indicates a wider push toward modernization of engineering logistics

About Government e-Marketplace (GeM)

The Government e-Marketplace is India’s national digital procurement portal for government departments, PSUs, and organizations.

Key Features
FeatureDescription
Launch BasisRecommendation of Group of Secretaries
PurposeOnline procurement of goods & services
OriginTransformation of DGS&D into digital platform
Development Time~5 months
ToolsE-bidding, reverse e-auction, demand aggregation
ObjectiveTransparency, efficiency, cost optimization
Key Advantages of GeM in Defence Procurement
  • Ensures optimal value for money
  • Enables competitive pricing
  • Facilitates ease of doing business for vendors
  • Reduces human intervention and delays

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