Of 281 listed products, only three biometric devices find buyers

Startup India is one of the top flagship initiatives of the central government for nurturing innovation and startups in the country.

The GeM portal has been fully integrated with Startup India portal, which is run by the Department of Industrial Policy and Promotion. (File)

Out of 281 products listed by 167 start-ups on Government e-Marketplace (GeM), only three products — which are biometric devices — have been purchased by the public sector firms so far.

“Total 167 start-ups have registered with the GeM portal. These startups have listed 281 different products. Out of these 281 products, only three products have been purchased by the public sector entities. This purchase happened last month only,” a senior government official said on the condition of anonymity.

The GeM portal has been fully integrated with Startup India portal, which is run by the Department of Industrial Policy and Promotion (DIPP). “A startup can now list their products and services on GeM and automatically receive relaxations on criteria of prior turnover, experience and submission of earnest money deposit,” said a government statement on Friday. Startup India is one of the top flagship initiatives of the central government for nurturing innovation and startups in the country.

As per Rule 149 of the General Finance Rules (GFR), 2017, procurement of goods and services by ministries and departments of central government has to be mandatorily done via GeM portal. GeM is not mandatory for state governments. It is left to their discretion to procure through GeM.

Under Startup India, the government in January 2016 announced incentives including a Rs 10,000 crore Fund of Funds (FFS) to be provided by March 2025 by SIDBI, a exemption from paying income tax on profits for three years and exemption from capital gains tax for start-ups.

A central government statement on Friday stated: “SIDBI has committed Rs 1,136 crore to 25 VC (venture capital) funds, who in turn have invested Rs 569 crores in 120 startups. These startups have generated 6515 jobs including 1184 for women.” As on September 15, 2017, SIDBI sanctioned Rs 605.70 crore to 17 funds for investment in 72 startup entities. However, till last August, only about Rs 70 crore was disbursed.