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Easing Public Procurement for Startups

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Introduction

Imagine the Government offices equipped with solar-powered lightings, AI-enabled grievance redressal systems, and water recycling machines. These innovations have the potential to augment Government operations at a scale. Startups are very dynamic in nature, work with limited resources and lack experience working with Government Departments in public procurement. It goes without saying that any product needs a buyer and any startup needs access to market to breakeven and sustain against the competition. The biggest buyer in India is the Government Departments! Startup India has created procurement channels to bridge the gap between departments and startups.

GeM Startup Runway

The Startup India team has worked with Government e Marketplace (GeM) to enable the DPIIT Recognized startups to register and sell their products directly to the Government Departments. DPIIT Recognized Startups can register on GeM using their DIPP Number, publish their products & services on the Government e-Marketplace and get the following benefits:

  1. Exemptions on Prior Experience, Prior Turnover, and Earnest Money Deposit requirements.
  2. An opportunity to work on a trial order with the Government. These trial orders give the buyer an option to test waters and be sure while procuring never-before-seen products.
  3. Get Feedback from the buyers to help the finetune their innovations. Such feedbacks, coming from various Government Departments, also provide validation to startups
  4. Removal of category issues on GeM for startups, enabling innovative products and services to be listed on the platform.

Till date, 2,545 startups have registered on GeM and availed the above benefits. These startups have supplied goods/services worth INR 407 Cr. to various departments!

The GeM Startup Runway is a great medium for startups who are looking forward to working with Government Departments. Many startups have got trial orders and have received more than 3 positive feedbacks from different departments. Following are a few success stories:

  • DPIIT Recognized Startup Kritsnam Technologies is a startup working in the field of water management to tackle the extremes of both flood and drought situations. The startup has received three trial orders from IIT Kanpur, Ganga Flood Control Commission in Patna and Central Water Commission through the GeM Startup Runway.
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  • Troika Transsolution has worked with 12 Government departments and is providing their mPOS devices, LED Lamps and Biometric Identification equipment to enhance daily activities in these departments. Police Department and Transport Department in Chandigarh are also implementing their devices for e-challan. The startup has sold goods worth INR 28 lacs through GeM.

 

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  • H2O Mantra, a water-purification startup, has worked with 4 Government departments to provide clean water and has received orders worth INR 1.3 Cr via GeM. The startup is working on the banks of Narmada River near Bhopal to purify river water an provide clean water to nearby districts.

Startup India and GeM are also conducting training workshops for startups to help them register on the portal, get all their queries resolved and learn how to sell to the Government Departments.

Central Portal for Public Procurement (CPPP)

Startup India has also integrated with the Central Portal for Public Procurement (CPPP). All Government Departments have a mandate to e-publish all tenders on CPPP, which means, now startups can access and participate in more than 2,00,000 tenders opened on the platform every year!

DPIIT Recognized startups can register on the portal using their DIPP Number, become a ‘Preferred Bidder’ and participate in all the tenders listed on the platform orders. Startup India’s partnership with CPPP portal has facilitated procurement through three websites namely:

Summary

With these channels, we hope to better facilitate startups and Government Departments in public procurement. Startups can now work on a pilot basis and participate in big-ticket projects (via tendering) through GeM and CPPP! Government Departments can now procure innovative products and services to solve real-life challenges in India and augment public service delivery.

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