UP Plans Startup E-Marketplace To Enable Direct Government Procurement

Lucknow, Aug 17 (KNN) The Uttar Pradesh government is planning to establish a startup e-marketplace under the UP Startup Mission to facilitate government procurement of innovative products and solutions developed by startups.

A proposal to introduce the framework is expected to be placed before the state Cabinet soon. Once approved, government departments will be able to purchase products and solutions from StartInUP-registered startups through simplified procurement mechanisms.

Startups To Get Direct Government Procurement Opportunities

Under the proposed framework, departments could directly procure equipment and solutions worth up to Rs 50 lakh from registered startups without inviting tenders, subject to prescribed quality and technical specifications, reported Times Of India.

For identified sunrise sectors, the direct procurement limit would be increased to Rs 1 crore per procurement. These sectors include green energy, drones, deep-tech, artificial intelligence, quantum computing, blockchain, agri-tech, med-tech and space technology.

For procurements above Rs 50 lakh and up to Rs 1 crore, outside the specified sunrise sectors, departments would conduct limited tenders exclusively among StartInUP-registered startups through the Government e-Marketplace (GeM).

GeM Exemptions To Support Startup Participation

Registered startups would also benefit from existing GeM exemptions relating to prior experience, turnover and earnest money deposits.

Departments could additionally opt for limited tenders for purchases below Rs 50 lakh where multiple startups are capable of meeting the requirement.

Departments May Allocate Funds For Startup Procurement

The proposal also seeks to create a dedicated financial window for startup procurement within government departments.

Departments may earmark up to 0.5 per cent of their annual budget outlay for procuring innovative products from startups, although the allocation would not be mandatory.

Each department would constitute a technical evaluation committee to assess startup products, determine the appropriate procurement route and monitor product quality.

Staggered Payment Mechanism Proposed For Startups

The proposed payment mechanism would provide startups 30 per cent of the payment upon placement of the order, 60 per cent after delivery and successful installation, and the remaining 10 per cent after completion of the warranty support period.

Principal Secretary, Planning and IT and Electronics, Alok Kumar III, said the initiative is intended to provide UP-based startups greater access to government markets while enabling departments to adopt locally developed technologies and innovative solutions.

The framework could also provide startups with a government procurement channel to test, scale and commercialise products developed in the state.

(KNN Bureau)