Kochi, June 1 (KNN) In a bid to enhance Kerala's startup ecosystem, the state government has raised the ceiling for procurement of products and services from KSUM-registered startups.

The limit has been significantly increased from Rs 1 crore to Rs 3 crore, according to an official statement.

The increase in the monetary ceiling in public procurement will enable more government departments to leverage innovative technology solutions from startups, it said.

KSUM is the nodal agency of the Kerala government for entrepreneurship development and incubation activities in the state.

According to a recent government order (GO), the advantages previously limited to IT-related startups have now been expanded to encompass non-IT ventures.

This extension allows Public Sector Undertakings (PSUs), boards, corporations, and Local Self Government (LSG) bodies to procure products and services from non-IT startups registered with KSUM.

Kerala has 49 parent departments along with more than 1,000 sub-organisations, and, as per the GO, all government organisations can purchase products and services from startups registered under KSUM, the statement added.

The government has also increased the ceiling for availing services and products from startups having the unique ID of KSUM without tender procedures from Rs 20 lakh to Rs 50 lakh.

In this regard, the Stores Purchase department and Electronics & Information Technology department have issued terms and conditions along with guidelines on the procurement of products and services of IT and non-IT startups from KSUM.

The state-run agency has launched a flagship project called 'Government As a Marketplace" for providing the innovative services and products of startups to government departments, the statement said.

Anoop Ambika, CEO of KSUM, said early product adoption is always critical for startups to scale up, and the government as an adopter helps startups grow exponentially while adopting innovative solutions.

As per reports, the Kerala government has also issued guidelines for departments on obtaining products and services from startups through projects like Market Placement Scheme, Demand Day, Demo Day, and Direct Procurement and Innovation Zone.

As per the new GO, startups that have completed three years from the date of their registration or three years from the date of the product approval by KSUM are eligible for the benefits of the scheme. Also, any startup that relocates to Kerala can avail the benefits of the 'Government As a Marketplace' project.  (KNN Bureau)