MeitY Plans AI-Led Overhaul of Govt IT Systems, To Empanel 20 Tech Firms

The Ministry of Electronics and Information Technology (MeitY) is preparing to accelerate the modernisation of government digital infrastructure by creating a panel of up to 20 technology firms that will help ministries upgrade legacy IT systems using AI, generative AI, and agentic AI technologies, as reported by Moneycontrol.

The initiative, proposed through a Request for Empanelment (RFE) issued by the National Informatics Centre Services Incorporated (NICSI) on June 25, aims to establish a ready pool of technology partners that government departments can engage without having to undertake separate procurement processes for each project. The empanelment will remain valid for an initial period of three years, with the possibility of a two-year extension based on performance.

Under the proposal, NICSI plans to empanel up to 10 companies under the general category and reserve another 10 slots for startups and micro, small and medium enterprises (MSMEs), encouraging broader participation from India’s emerging technology ecosystem.

The selected firms will be responsible for evaluating existing government applications, identifying outdated technology stacks, and recommending modernisation strategies to improve the efficiency, scalability, and resilience of public-sector digital systems.

A key feature of the initiative is the government’s emphasis on embedding AI into core digital infrastructure rather than treating it as a standalone capability. The scope of work includes integrating machine learning, generative AI, agentic AI, intelligent automation, and advanced analytics into government applications, as well as establishing AI governance frameworks to ensure responsible deployment and oversight.

Beyond application modernisation, vendors will also be expected to strengthen government data infrastructure by developing data lakes, data warehouses, and other modern data management architectures that support AI-driven decision-making.

The empanelment process will involve multiple stages of evaluation, including eligibility screening, technical assessment, presentations, and financial evaluation, with technical capability carrying significant weight in the final selection.

By creating a common panel of AI-focused technology partners, NICSI is expected to streamline technology procurement while enabling ministries and departments to rapidly execute AI-led digital transformation projects across government.