Startups in Haryana can now compete with MSMEs in public procurementhttps://indianexpress.com/article/india/startups-in-haryana-can-now-compete-with-msmes-in-public-procurement-5577925/

Startups in Haryana can now compete with MSMEs in public procurement

For qualifying to participate in government’s public procurement tenders, startups and first generation entrepreneurs are also going to be provided a concession of 80 per cent on the “turnover condition” imposed as qualifying criteria.

Startups in Haryana can now compete with MSMEs in public procurement
A notification was issued on January 3 detailing all the concessions that startups will now be entitled to. (Express Illustration)

In a big boost to startups in the state, Haryana government has given a major relaxation in the norms and now decided to bring the startups at par with established entrepreneurs and companies under Micro Small and Medium Enterprises category. The government has decided to provide concession/benefits in public procurement to startups/first generation entrepreneurs across the state.

A notification was issued on January 3 detailing all the concessions that startups will now be entitled to. “In order to strengthen startup movement in the state, to provide opportunity to startups to scale up and to allow them to compete with experienced entrepreneurs and companies in public procurement by relaxing the norms for public procurement for them, it has been decided that the concessions/benefits as allowed to MSEs of the state as provided in Haryana State Public Procurement Policy for MSME-2016 dated October 20, 2016 and further amendment dated April 23, 2018 in the matter of Tender Fee, Earnest Money Deposit (EMD), Performance Security, Turnover, Past Performance and Experience and Purchase preference will also be provided to startups of the state by considering them to be at par with Micro and Small Enterprises (MSEs) subject to the condition that the startups shall be required to meet the other quality and technical specifications as part of qualifying requirements of the procurements”, the notification reads.

Most vital of these is the “90 per cent concession on Performance Security as applicable to other Haryana based firms subject to fulfillment of conditions as per eligibility and concession of 80 per cent on turnover condition imposed”. The startups have also been exempted from payment of tender fees and payment of Earnest Money Deposit, subject to fulfillment of the eligibility conditions.

For qualifying to participate in government’s public procurement tenders, startups and first generation entrepreneurs are also going to be provided a concession of 80 per cent on the “turnover condition” imposed as qualifying criteria.
Haryana’s Department of Electronics and Information Technology is the nodal agency, which is facilitating implementation of pilot projects by startups for various state government departments.

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Currently, as part of the Hartron’s Innovation Hub at Gurgaon, 44 startups, with over 130 members including 30 per cent women, are functional with National Association of Software and Services Companies (NASSCOM) and Internet and Mobile Association of India (IAMAI).

Last year in April, Hartron had developed approximately 30,000 sq feet built up area on a 3.4 acre land into Hartron Muti-Skill Development Centre (HMSDC), Gurgaon and made it an Innovation and Startup Hub. Currently, three incubators in association with various industry partners are operating in this HUB.

Revealing state government’s plans, Vijayendra Kumar, Haryana’s Secretary, Electronics and Information Technology, said, “We are also going to set up/encourage startups in universities across Haryana. They would be registered to setup incubators to encourage and promote startups”.

“A ‘seed funding’ up to Rs 3 lakhs per startup is routed through state/centre recognised incubators. State government is also creating a Corpus of Rs 100 crores to meet the funding and scaling up requirements of the startups. The ‘seed funding’ is provided to the startup for validation of an idea, prototype development, travelling assistance, rebates in rent, carrying out field research and training. Further assistance in getting patents for the innovations is also supported through this grant,” Kumar told The Indian Express.

Collaboration with United Nations
Government officials revealed that a Blockchain Incubator is under process in collaboration with Software Technology Parks of India (STPI) and United Nation Technology Innovation Lab (UNTIL) and is being set up in the HMSDC complex.

“UNTIL is proposed to be set up in collaboration with United Nations, with aim to encourage women entrepreneurship. UNTIL labs will provide leadership for coordination and mobilisation of technology resources, develop advance technology platform and build innovative solutions enrooted with digital identity in pursuit of achieving sustaining development goals”, said Kumar.

Block Chain Technology is proposed to be setup in collaboration with STPI, with an aim to plan for long term by developing a mentorship driven Incubation cum acceleration program for early stage startups.  “It will work with IBM blockchain services that breaks down those barriers to create new business networks with more trust and transparency”, Kumar added.