Now, Startups Can Bid For Govt Projects In AP

Preferential market access for startups is a big opportunity for budding entrepreneurs in Andhra Pradesh. AP is likely to be the first State in India to give startups special access to government markets. This will boost startup growth in AP. We are also hoping for a strong policy for startups and innovation soon - Sreedhar Kosaraju, Director, APDTI Network, tells Bizz Buzz

Visakhapatnam:After announcing a seed fund worth Rs250 crore to support early stage startups to turn into global companies, Andhra Pradesh Government has issued orders to enable startups to participate in bidding for projects worth Rs50 lakh.

This is considered yet another major development to strengthen the startup ecosystem by laying emphasis on spreading of innovation culture as per the Andhra Pradesh IT & Global Capability Centres (GCC) Policy (4.0) 2024-29. The policy focuses on improving physical, digital and financial infrastructure, providing co-working space, developing large working spaces like Raheja Mindspace and Millennium Towers and encouraging remote and hybrid work culture with thrust on spreading out-of-the box ideas for better delivery mechanisms.

When contacted, Sreedhar Kosaraju, Director, AP Digital Technology Industry (APDTI) Network, told Bizz Buzz that the preferential market access (PMA) for startups is a big opportunity for budding entrepreneurs in Andhra Pradesh. AP is likely to be the first State in India to give startups special access to government markets. Now, startups can join tenders worth up to Rs50 lakh in government departments, agencies, universities, PSUs, and more. This is a great step by the AP government to support local startups.

Kosaraju, who is also the chairman of DeepTech Naipunya Foundation, said: “We have been working hard for PMA for a long time. Finally, it has happened. We thank Minister Lokesh, Secretary of the ITE&C Department, and CEO of APIS for their support. This will boost startup growth in AP. We are also hoping for a strong policy for startups and innovation soon.”

According to GO MS: No. 2 issued on February 24, the government is committed to fostering a robust ecosystem that nurtures innovation and promotes startups in the State. In furtherance of this objective, the government endeavours to provide market access opportunities to DPIIT-recognized startups that are registered in Andhra Pradesh, thereby enabling them to scale operations and compete effectively with established enterprises.

The government has recognised that the startups encounter significant challenges in accessing markets due to restrictive tender conditions such as prior turnover requirements, prior experience criteria, and EMD mandates. Given that government procurement plays a pivotal role in the economy, providing preferential access to the startups will facilitate their growth while enabling the government to leverage innovative solutions to enhance governance and public service delivery.

Several States, including Kerala, Karnataka, Tamil Nadu, Odisha, and Telangana, have already implemented measures to ease market access for startups by relaxing procurement norms. Taking cognizance of this, the Andhra Pradesh Government, after careful consideration, has decided to introduce relaxations in public procurement norms for DPIIT-recognised startups registered in the State.

The GO states to ensure that PMA is granted to capable and competitive startups, only those meeting the following eligibility criteria shall be considered: The DPIIT-recognised startup should have a registered office in Andhra Pradesh and an existing product or service already available in the market by the time of tender issuance.

The startup must have achieved any one of the following milestones, a secured winner/runner-up status in any international, national, or State-level innovation challenges or hackathons, secured grants or funding of Rs25 lakh and above under any national or State-supported schemes or programs and possess a patented technology or product that is currently available in the market.