The commerce ministry closed down its nearly 100-year-old public
procurement arm -- the Directorate General of Supplies and Disposals
(DGS&D) known for red tapism-- on October 31, the ministry sources said
The closure of the DGS&D, which traces its origin to the British raj,
follows setting up of the government e-market (GeM) platform last year for
public procurement of goods and services.
"We closed all the operations of the Directorate on October 31. It was
replaced with a much transparent GeM platform," the sources said.
About 1,100 of its employees are being shifted to different departments,
including income tax, while the senior officers are likely to be accommodated
in other branches of the government.
DGS&D assets, which were present across the country, are transferred to
the Land and Development Office of the urban development ministry. The
directorate has four regional offices, including Mumbai, Kolkata and Chennai.
It has 12 Purchase Directorates (Commodity-wise) at its headquarters here.
Besides, there are 20 offices/sub-centres and the staff strength is over 1,200.
The DGS&D has its origins in the India Stores Department, which was
established in 1860 in London by the British for centralised purchase of goods
Last year, the GeM was launched by the ministry to bring in greater transparency
and efficiency in public procurement.
The GeM portal has eliminated human interface in vendor registration, order
placement and payment processing to a great extent.
Central and state governments procure goods and services worth over Rs 5
lakh crore annually.