Objective for Public Procurement Relaxed Norms
To provide an
equal platform to Startups (in the manufacturing sector) vis-à-vis the
experienced entrepreneurs/ companies in public procurement
Details
Typically,
whenever a tender is floated by a Government entity or by a PSU, very often the eligibility condition specifies
either “prior experience” or “prior turnover”. Such a stipulation prohibits/ impedes Startups
from participating in such tenders.
At present,
effective April 1, 2015 Central Government, State Government and PSUs
have to mandatorily procure at least 20% from the Micro Small and Medium
Enterprise (MSME).
In order to promote Startups, Government shall exempt Startups (in the manufacturing
sector) from the criteria of “prior experience/
turnover” without any relaxation
in quality standards or technical parameters. The Startups will
also have to demonstrate requisite
capability to execute the project as per the requirements and should have
their own manufacturing facility in
India.
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