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Scheme
Government as a market place
Kerala has made major strides for facilitating the growth of B2G startups in the state. The Government of Kerala has introduced the first-of-its-kind initiative of providing direct procurement options to Government departments from startups, the first time by any State Government in India. This sprouts from the Kerala State IT Policy 2017 that formalised public procurement from startups.

Kerala is one of the proactive states who have successfully inducted and implemented the Startup direct procurement for Government departments and organizations. This has become rated as one of the best practices in the States Startup Ranking by DPIIT under Public Procurement. Kerala Government has become one of the major early adopters of startup products.

The innovative startup products adopted by the government has encouraged innovation within the government and this has in fact enthused more departments to engage with
startups. The successful engagement with startups has created more departments to explore engaging innovative products from the startups.

The Government of Kerala has issued multiple Government Orders (GO) for establishing the scheme and the same has been successfully implemented.

1. Relaxation for Startups in Participating in Public Tenders
a. Relaxation in Tender Fee and Earnest Money Deposit
b. Relaxation in Prior Experience and Turnover

2. Direct Procurement
a. Government of Kerala has sanctioned permission to Government Departments to purchase product from Startups registered with Kerala Startup Mission directly upto Rs 50 Lakhs exclusive of GST without any tendering process subject to approval by the technical committee constituted as per the GO (Ms) No 2/2022/SPD dt 05.07.2022.

3. Limited Tender Process
a. Government of Kerala has sanctioned permission for Government Departments, Boards, PSUs, Corporations etc to procure Startup Products upto a value of Rs 300 Lakhs through a limited tender process i.e limited to startups registered under Kerala Startup Mission

141
Startups
147
Organisations
126
Direct Procurement
264
Work Order
28.05
Crores
Process of Scheme

Direct Procurement

A department may receive a proposal or may identify a product from a startup that is relevant for its use and would be interested in purchasing the same.

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Eligibility Criteria
  • A startup legally registered with KSUM unique ID
Benefits of Scheme
  • Relaxation for Startups in Participating in Public Tenders
a. Relaxation in Tender Fee and Earnest Money Deposit
b. Relaxation in Prior Experience and Turnover
  • Direct Procurement
a. Government of Kerala has sanctioned permission to Government Departments to purchase product from Startups registered with Kerala Startup Mission directly upto Rs 50 Lakhs exclusive of GST without any tendering process subject to approval by the
technical committee constituted as per the GO (Ms) No 2/2022/SPD dt 05.07.2022.
  •  Limited Tender Process
a. Government of Kerala has sanctioned permission for Government Departments, Boards, PSUs, Corporations etc to procure IT products upto a value of Rs 300 Lakhs through a
limited tender process i.e limited to startups registered under Kerala Startup Mission
Outcome of Scheme
The scheme has evolved since it's inception in  2017 and has been recognized by Startup India as one of the unique programs for startup. The direct procurement model is one of its kind in the country and is now made available for Departments to procure for a value up to Rs 50 Lakhs.
View Government Order