Thiruvananthapuram: In a major boost to the startup ecosystem, the Kerala government Friday granted sanction to its departments and autonomous institutions to invite startups registered under the Kerala Startup Mission (KSUM) in implementation of their IT projects that cost up to Rs one crore.
According to the Government Order (GO) in this regard, the departments, boards, local self-government institutions, corporations and universities can rope in start-ups through limited tender for design, development and implementation of their IT projects costing above Rs 20 lakh and below Rs one crore.
The decision comes close on the heels of Kerala receiving the honour of 'Top Performer' in the annual States Startup Ranking 2018 in New Delhi recently, an official press release said.
A total of 27 states and three union territories had participated in the ranking exercise, the release said.
Kerala is the first state in the country to give permission to its departments for direct procurement from startups to encourage them to take up innovative projects, it said.
Recently, the state government had increased the cap on direct purchase of software products, services and mobile app by its departments from the ventures cleared by KSUM from Rs 5 lakh to Rs 20 lakh, the release said.
The new Government Order will significantly help the growth of the startup ecosystem in the state. This step will bring excellent opportunities for startups, besides helping the state attract such ventures from other states," the release quoted chief executive officer of KSUM Dr Saji Gopinath as saying.
B2G (business to government) market in Kerala is high and the opportunity for start-ups in implementing their innovative projects in the government departments is a solid way of validating their products, the release said.
Till date, around 40 startups have been working with different government departments, it said.
This has eased the functioning of departments as well as helped prompt delivery of services by the government departments, it said.
Startups from across the country can pitch their products to government departments if they are registered in Kerala, the release said.
Earlier, in a letter to the state government, Dr Gopinath had requested to issue orders for selecting startups for the procurement of all types of products and services beyond Rs 20 lakh through limited tender from among the startups registered under KSUM.
KSUM is the nodal agency of government of Kerala for entrepreneurship development and incubation activities in the state.