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Cactus, Kyndryl advance in race for govt AI procurement platform

Two firms clear technical stage as NeGD narrows AI tender shortlist

NEW DELHI: The AI race has reached the final lap, and only two contenders are still in the running. Cactus Technology Solutions and Kyndryl Solutions have emerged as the only technically qualified bidders for the government’s proposed AI-powered procurement authoring platform, after clearing the technical evaluation stage of a tender floated by the National e-Governance Division (NeGD).

Bids submitted by CoRover, Innefu Labs and NEC Corporation India were rejected during the technical evaluation, narrowing the contest to two companies as the government moves closer to selecting a technology partner for the project.

The procurement platform is part of the Centre’s broader push to embed artificial intelligence across government operations, with the aim of improving efficiency, automating processes and modernising procurement workflows.

The development follows MeitY’s decision last month to empanel six companies to provide artificial intelligence (AI) and machine learning (ML) services for projects across central ministries and government departments. The empanelled agencies will support AI-driven initiatives spanning citizen services, data analytics, process optimisation and automation, allowing government bodies to access specialised AI expertise through a standardised procurement framework.

The empanelment will remain valid for two years, with the option of extending it by up to one additional year, providing departments with a ready pool of pre-approved technology partners for future AI projects. By establishing common commercial terms and a centralised vendor panel, the government aims to shorten procurement cycles and accelerate the deployment of AI solutions across ministries.

The framework will also be available to state governments, public sector undertakings (PSUs) and affiliated organisations looking to implement AI-based projects. These entities will be able to engage empanelled vendors directly while keeping NeGD informed about the contracts awarded.

The twin developments underline the Centre’s accelerating AI agenda. As government departments increasingly adopt intelligent automation and data-driven decision-making, the focus is shifting from pilot projects to building scalable digital infrastructure that can support AI deployment across the public sector.

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