Start-Ups To Get No Relaxation In Procurement Norms For Certain Items
Facebook Twitter google+ RSS Feed

Start-Ups To Get No Relaxation In Procurement Norms For Certain Items

33
cmt right
32
Comment Right
37
cmt right
14
cmt right
Printer Print Email Email


NEW DELHI: Government agencies may not relax procurement norms for startups on prior experience and turnover criteria in respect of goods that have implications on public safety and health.



Earlier, the government had said that all central ministries and department "may relax" condition of prior turnover and prior experience in public procurement to all startups if they meet quality and technical specifications.



However, a doubt had arisen if it makes optional for central ministries and departments to relax the condition of prior experience and turnover in public procurement to startups, said an office memorandum of Expenditure Department.



It said that "normally" for all public procurement, government departments and ministries should ensure that experience and turnover criteria are relaxed.



"However, there may be circumstances like procurement of items related to public safety, health, critical security operations and equipment where procuring entities may prefer the vendors to have prior experience rather than giving orders to new entities. For such procurements, wherever adequate justification exists, the procuring entities may not relax the criteria of prior experience/ turnover for the startups," the communications said.



India has the third-largest number of startups globally. In January, Prime Minister Narendra Modi had unveiled a slew of incentives for them including tax holiday, inspector raj-free regime, capital gains tax exemption, 10,000 crore corpus to provide funds, and relaxation in procurement norms.



In its October monetary policy review, the Reserve Bank of India said startups can raise external commercial borrowings of up to 3 million in a financial year, with a view to boosting innovation and promoting job creation.



Read Also:
Samsung Acquires AI Startup To Enhance Virtual Assistant Experience
Start-Ups Can Raise $3 Millon Via ECBs Annually: RBI


Source: PTI
Experts on SiliconIndia
Santhosh  K
Sr. Soft. Engg.
Oracle India
Nehal Vyas
Sr. Team Lead
Cyberoam Tech.
Rani Malli
Sr. Director
Philips
Sr. Executive
ISB
Vijay Balkrishna Konduskar
Business Consultant
Imans Web Tech
Dr L P  Sharma
Technical Director
NIC
Reena Khanna
Founder
Solitaireworld
Dellas  Asse
sys-network admin
Computer Station
Write your comment now
Submit Reset
SPOTLIGHT