पत्र सूचना कार्यालय

Introduction

India’s public procurement ecosystem has undergone a remarkable digital transformation in recent years. Building on this momentum, a new digital revolution is quietly unfolding, not in the procurement of goods and services, but in the disposal of Government assets. This transformation is being driven by the Forward Auction module of the Government e-Marketplace (GeM).

While GeM is widely recognised as a digital platform for transparent and efficient procurement, its Forward Auction module offers a fully online bidding mechanism that enables Ministries and Departments to sell their assets. Through a fully digital and secure interface, every asset sale is now run through a paperless, cashless, and contactless system designed to eliminate delays and inefficiency. The result is two-fold: higher realisation from scrap disposal, and a fair outcome for all stakeholders.

The GeM Portal: India’s Unified Public Procurement Platform

GeM is a secure, end-to-end digital platform that facilitates the procurement and disposal of goods and services by Government departments, Public Sector Units, and affiliated bodies. GeM drives inclusive growth in public procurement through initiatives that empower Startups, MSMEs, Women entrepreneurs, and Self-help Groups to access Government markets.

As of November 2025, GeM has processed nearly 3.27 crore orders with a cumulative Gross Merchandise Value (GMV) exceeding ₹16.41 lakh crore. This includes ₹7.94 lakh crore in services and ₹8.47 lakh crore in products. The platform supports over 10,894 product categories and 348 service categories, with more than 1.67 lakh buyer organisations onboard. Over 24 lakh sellers and service providers have completed their profiles on GeM. Notably, Micro and Small Enterprises (MSEs) play a key role, contributing 44.8% of the cumulative order value. With over 11 lakh MSEs registered, these enterprises have collectively received orders worth over ₹7.35 lakh crore.

GeM’s Forward Auctions for Smart Disposal & Governance

Recognising the requirement and potential of auctions as a tool for channelising public resources, GeM’s Forward Auctions are transforming the way India disposes Government assets. This digital revolution offers a flexible environment encompassing bidding and auction management, user-friendly navigation and is designed to increase speed, transparency and efficiency.

From December 2021 to November 2025, the module has facilitated auctions worth ₹2,200+ crore, conducted over 13,000 auctions, welcomed 23,000+ registered bidders, and enabled participation from more than 17,000 auctioneers.

Success Stories: When Auctions Create Real Impact

The State Bank of India recently auctioned 100 Economically Weaker Section (EWS) flats in Aliganj, Lucknow. Through a cluster-wise GeM forward auction, these flats fetched ₹34.53 crore, surpassing expectations.

National Zoological Park, New Delhi had long struggled to dispose of unusable and obsolete articles. Using GeM’s forward auction, the Zoo put the material up for bid and received competitive offers (H1 price) well above the reserve value.

• The Food Corporation of India (Aravali Gypsum and Minerals India Ltd.) sold screened gypsum, yielding ₹3.35 crore.
• Around 261 condemned vehicles were disposed off in Jammu through the GeM portal.
• Similarly, the Border Roads Organization (BRO) successfully auctioned salvaged items.
• A dormitory was successfully leased of for five years in Gulmarg.
• Boating activity rights were also actioned for a lake in Spurtar.

By placing assets on a transparent digital platform and inviting broad market participation, the process ensures fair price discovery, faster outcomes, and optimal value realisation, transforming asset disposal into a strategic instrument of value creation.

Bidding Made Easy: Who Can Participate and How

Participation in the forward auctions is open to all eligible individuals and firms that register on the GeM portal. Interested bidders are required to submit an Earnest Money Deposit (EMD), wherever applicable. Once registered and compliant, bidders can seamlessly participate in live auctions conducted entirely online through a secure, transparent, and time-bound process.

To ensure transparency, all auctions are publicly listed, except in a limited number of cases where asset sensitivity necessitates restricted auctions open only to pre-qualified bidders.

Transforming Governance: Transparency, Efficiency and Sustainability

The rise of forward auctions on GeM represents a paradigm shift in public procurement systems. By delivering both operational efficiency and governance reforms, the GeM model institutionalises good governance within its digital platforms.

The Government is committed towards Sustainable Development Goal 12.7 to promote sustainable public procurement in accordance with national policies and priorities.  By enabling proper auction and disposal of e-waste, scrap, and other materials through authorised channels, GeM is supporting environmentally safe practices.

The feature brings all asset sales onto a transparent, rule-based digital platform where every bid is visible, ensuring open and free negotiations.

By moving the entire disposal process online, GeM has eliminated paperwork, streamlined approvals, and enabled faster decision-making, helping departments complete asset sales in a shorter period of time.

The module allows all eligible and registered bidders to participate equally, using a transparent digital interface that ensures the highest bid wins.

With competitive bidding and wider participation, final bids often exceed reserve prices, helping government departments maximise the value recovered from obsolete assets.

The module has simplified and sped up the disposal process, allowing departments to quickly clear unused items like scrap, old machinery, or vehicles, freeing up space and reducing holding costs.

Conclusion

GeM’s Forward Auction module has rapidly transformed age-old manual public procurement processes into a transparent market mechanism. In this evolving landscape, forward auctions stand out by digitalizing the disposition of assets. From a local scrap dealer to a large real-estate buyer, from a department selling old machinery to a bank auctioning property, GeM’s digital feature has made Government auctions efficient, competitive and trustworthy.

As more departments adopt forward auctions, the Government departments and businesses are brought onto the same transparent digital interface, where every bid is visible, every rule is predetermined, and every outcome is fair, driving digital democracy, enhanced transparency, and better value creation.

References:

Ministry of Commerce & Industry

https://www.pib.gov.in/PressReleasePage.aspx?PRID=2201284&reg=3&lang=2

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1831192&reg=3&lang=2

Government e-Marketplace (GeM)

https://gem.gov.in/gem-advantages

https://gem.gov.in/gem-exclusive

https://gem.gov.in/news/view_news/348

GeM of a Solution: Forward Auctions of Government Assets

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PIB Research