Odisha Govt announces exemption for MSMEs-Startups from deposit of earnest money

New Delhi, Apr 24 (KNN) The Orissa State Government has eased the norms of tender process for startup entrepreneurs to improve ease of doing business by exempting the startups from Earnest Money Deposit.

Seeing the hurdles and challenges being faced by local startups and MSMEs, the state government has exempted the MSMEs and startups as defined under para-7 (vi) and certified by Nodal Agency in para-7(v) of Odisha Startup Policy-2016 from deposit of earnest money while participating in tenders of Government departments and agencies under its control.

In the released notification dated 19th April 2018, the Finance department has strictly prohibited the startup entrepreneurs from depositing the minimum security amount while participating in the bidding process invited by various departments and agencies of the Government.

In case they the startup entrepreneurs win the tender though bidding process, the local startups would be required to make a payment of 25% of the performance security in order to ensure the performance of contract. (KNN/YV)