THIRUVANANTHAPURAM: A day after the Kerala Startup sector was ranked top in the country, the startups in the state have more reasons to cheer. The state government has decided that all state government departments and organisations, including public sector undertakings and autonomous bodies, can select startups registered with the Kerala Startup Mission for IT projects worth up to Rs 1 crore through limited tender.
So far, government departments were allowed to directly purchase software products worth Rs 20 lakh only from startups registered with the Kerala Startup Mission (KSUM).
According to the fresh government order issued on December 18 by the Electronics and IT Department, all government departments, public sector undertakings, autonomous bodies, boards, corporations, local self-government institutions and other government organisations can select startups registered under the KSUM through limited tender for design, development and implementation of IT projects costing above Rs 20 lakh and below Rs 1 crore.
IT department sources said that the fresh decision would give better opportunity for the startups in the state to get works without much competition. This would further strengthen the ecosystem for the startups in the state. It may be recalled that Kerala was ranked top with regard to startup ecosystem by the centre the other day.
From last year onward, the government had allowed the departments to make direct purchase of mobile apps worth up to Rs 5 lakh from startups in the state. Earlier this year, the limit for direct purchase of IT products from startups was enhanced to Rs 20 lakh.
KSUM chief executive officer Saji Gopinath recenlty recommended to the government to allow all government departments for procurement of all types of IT products and services beyond Rs 20 lakh from startups through limited tender. Based on this, the government issued orders allowing direct purchase of up to Rs 1 crore.