MeitY to empanel 20 firms for AI-led IT overhaul: Report

The Ministry of Electronics and Information Technology (MeitY) is planning to empanel up to 20 technology companies to support the AI-led modernisation of legacy government IT systems, according to media reports.Under the proposed framework, the ministry intends to onboard 10 vendors in the general category and reserve another 10 slots for startups and micro, small and medium enterprises (MSMEs). The empanelled firms will be eligible to execute technology modernisation projects for central ministries, state governments, public sector undertakings (PSUs) and other government organisations through project-specific work orders issued by the National Informatics Centre Services Incorporated (NICSI).Also Read: MeitY urges IT sector to embrace AI shift, focus on reskilling over job-loss concernsAs outlined in the request for empanelment (RFE), participating firms will be responsible for evaluating existing government applications, identifying outdated technology stacks and recommending suitable AI-enabled modernisation strategies to upgrade legacy systems.The empanelment is proposed for an initial tenure of three years, with a provision to extend it by an additional two years based on performance. Once the panel is in place, government departments will be able to award project-specific work orders under the rate contract, reducing the need to undertake separate procurement processes for each project.The selection process is expected to prioritise technical expertise, with bidders undergoing a multi-stage evaluation that includes eligibility screening, technical assessment and presentations before progressing to the financial evaluation stage.The initiative is aimed at creating a ready pool of technology partners capable of accelerating AI adoption across government IT infrastructure while streamlining procurement for digital transformation projects, media reports said.