Now Kerala Govt. Departments Can Rope in Startups for IT Projects Worth up to Rs. 1 crore
Thiruvananthapuram: In a major boost to the startup ecosystem in Kerala, the State Government has given sanction to its departments and autonomous institutions under it to invite startups registered under the Kerala Startup Mission (KSUM) for implementing IT projects that cost up to Rs. one crore.
As per the Government Order (GO) in this regard, the State departments, boards, local self-government institutions, corporations and universities can rope in startups through limited tender for design, development and implementation of their IT projects costing above Rs. 20 lakh and below Rs. one crore.
The decision comes close on the heels of Kerala receiving the honour of ‘Top Performer’ in the annual States’ Startup Ranking 2018, announced in New Delhi recently. A total of 27 states and three Union Territories participated in the ranking process.
Kerala is the first state in the country to give permission to its departments for direct procurement from startups, to encourage them to take up innovative projects.
Recently, the State Government had increased the cap on direct purchase of software products, services and mobile app by its departments from the startup ventures cleared by KSUM from Rs. 5 lakh to Rs. 20 lakh.
“The new Government Order will significantly help the growth of startup ecosystem in Kerala. This step will provide excellent opportunities for startups, besides helping the State attract such ventures from other states to Kerala,” said Dr. Saji Gopinath, CEO, KSUM.
B2G market in Kerala is high and the opportunity for startups to implement their innovative projects in the government departments is a solid way to validate their products.
Till date, around 40 startups are working with different government departments. Startups from across the country can pitch their products to government departments if they are registered in Kerala.