Public Procurement

Telangana’s commitment has been focused on cultivating the institutional support for startups by providing demonstrable and transparent procurement processes. The objective was to stimulate efficient and friendly public procurement opportunities and promoting a healthy and competitive market for startups. The other prime initiative was to eliminate fraud, obscure activity and corruption and promoting sustainable procurement practices in the market.

In support of this, the Government laid out:

• Relaxation norms for Startups in Public Procurement through GO.Ms.No.08 dated April 28th, 2018
• Preferential Financial Advantage to Startups through GO.Ms.No.08 dated April 28th, 2018
• Bilateral Procurement from Startups irrespective of a floated procurement notice/tender through GO.Ms.No.08 dated April 28th, 2018

1. Relaxation norms for Startups in Public Procurement

The Government of Telangana through GO.Ms.No.08 dated 28/04/2018 had brought in the undermentioned relaxations to Startups in Public Procurement:

• Prior turnover – Startups shall not be subjected to any prior turnover criterion for being eligible to participate in a government procurement process
• Prior experience – Startups shall not be required to have any prior experience of having participated in a public procurement process
• Exemption from Submission of EMD – Startups shall not be required to submit an Earnest Money Deposit to participate in public procurement process

In order to be deemed eligible, the Startup must submit a covering letter requesting for this relaxation in the format attached in Annexure-I (as available in the GO) to the Principal Secretary, ITE&C Department. The Startup shall then be issued a certificate as prescribed in Annexure-II (as available in the GO) which may then be used for availing the benefits outlined earlier.

2. Preferential Financial Advantage to Startups

Startups shall be given a 15% relaxation on their submitted financial quotations pertaining to procurement, subject to meeting of quality and technical specifications.

• If a startup quotes Rs X to be paid to them for goods/services: Y=X*85/100 (Y used as financial bid)
• If a startup offers to pay Rs X for owning/operating goods/services: Y=X*115/100 (Y used as financial bid)

3. Bilateral Procurement from Startups irrespective of a floated procurement notice/tender

Interested Startups can submit an Expression of Interest (EoI) and detailed proposal by mailing the same to startup_cell@telangana.gov.in. Quality Evaluation Committee (QEC) evaluates. Unique solutions: pilot PoC then scale-up. Non-unique innovative solutions: Swiss Challenge method. Financial advantage also applies in Swiss Challenge.

VISIT E-PROCUREMENT PORTAL