An over 100-year-old government procurement arm, the Directorate General of Supplies and Disposals (DGS&D), will be shut down this fiscal year, Press Trust of India has reported, adding that the commerce ministry has already started the process.

"We are closing DGS&D. We would close it in this fiscal only. It is more than 100-year-old organisation," a commerce ministry official, who did not wish to be named, said on Tuesday (8 August).

DGS&D has its origin in the India Stores Department, which was set up in 1860. To handle all government purchases, the setup of Purchase and Inspection was reorganised in 1951 and DGS&D was constituted in its present form.

Although the process for shutting down the purchase arm has started, the ministry will have to decide upon issues related to manpower, land and office spaces of the directorate.

In its current form, the directorate has four regional offices including Mumbai, Kolkata and Chennai. It has 12 Purchase Directorates at its headquarters and 20 sub-centres, and the staff strength is over 1,200.

Since last year, the public procurement of goods and services is being managed by the ministry's e-market platform, Government e-Market.