As one of the frontrunners in among Indian states for startup friendly policies, Kerala has now approved its departments and autonomous institutions to invite startups registered under the Kerala Startup Mission (KSUM) to implement their IT projects that cost upto INR 1 Cr ($143K).
The government order states that the state departments, boards, local self-government institutions, corporations and universities etc can rope in startups through limited tender for design, development and implementation of their IT projects costing above INR 20 Lakh ($28,692) and upto INR 1 Cr ($143K).
Dr Saji Gopinath, CEO, KSUM 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 to Kerala.”
Interestingly, startups from across the country can pitch their products to government departments if they are registered in Kerala.
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Founded in 2006, Kerala Startup Mission is the key agency of the Government of Kerala for entrepreneurship development and incubation activities within the state. The announcement comes soon after the Department of Industrial Policy & Promotion (DIPP) released the State Startup Rankings on basis of the startup policy framework that it had announced earlier this year.
According to the State Startup Ranking Report, while Gujarat is rated the ‘best-performing state’, Karnataka, Rajasthan, Odisha and Kerala came in a notch below as ‘top-performing states.’
The states were also provided with individual reports for their performances and were also explained the points they needed to improve upon. DIPP secretary Ramesh Abhishek had appreciated Kerala for providing legal tenders to startups.
The government had recently increased the cap on direct purchase of software products, services and mobile app from the ventures cleared by KSUM from INR 5 Lakh ($6865) to INR 20 lakh ($28,692).
Till date, around 40 startups are working with different government departments in Kerala and the government has been easing the functions of departments as well as helping prompt delivery of services by the government departments.
With the Indian startup ecosystem continuing to grow at an increased pace, the steps taken by the likes of Kerala government continue to be a major contributor for growth in India.