Rajasthan Startups Can Get Contracts Upto Rs 25 lakhs Without Tenders

The procurement limit for startups in Rajasthan is now Rs 25 lakh without tenders. Startups can also receive up to six work orders per year. Women-led, specially-abled, transgender & SC/ST-led startups shall now be eligible for additional work orders.

Swati Dayal
10 Apr 2023
Rajasthan Startups Can Get Contracts Upto Rs 25 lakhs Without Tenders

The procurement limit for startups in Rajasthan has been increased upto Rs 25 lakh without even going through the tender process.

The Rajasthan government recently announced slew of new measures to bolster the growth of local startups. There was an amendment made to the Rajasthan Transparency in Public Procurement (RTPP) Rules, 2013, which enables government departments to award contracts worth up to Rs 25 lakh to startups without tender.

What is the new limit for Startups in Rajasthan’s Procurement Policy?

There is a significant increase from the previous limit of Rs 15 lakh for the startup to Rs 25 lakhs, a move that is expected to promote further growth within the startup ecosystem.

The policy change is aligned with the broader goals of the Rajasthan Startup Policy, which aims to promote innovation and entrepreneurship in the region. 

What is the number of work orders a startup can get in Rajasthan?

As part of this initiative, the number of work orders that can be granted to startups in a single year has been increased from three to six

Who shall be eligible for an additional work order under Rajasthan Procurement Policy?

The startups led by women, specially-abled individuals, transgender individuals, and those belonging to the Scheduled Castes (SC) and Scheduled Tribes (ST) will be eligible for an additional work order.

The announcement of the new policy follows the Chief Minister's budget speech in which he had declared his intention to increase the procurement limit without tender for startups to Rs 25 lakh.

The Rajasthan government's recent policy changes demonstrate its commitment to creating a conducive environment for startups to thrive. By increasing the procurement limit without tender for startups, the government aims to promote innovation and entrepreneurship in the region while also providing a boost to businesses owned by women, specially-abled individuals, and marginalized communities. 

What does the Rajasthan Startup Policy Document say?

The government has made a provision for the startups to get contracts or works from the government departments through central and state public procurement portals and government e-marketplace etc. 

Rajasthan government in its policy document said that in order to encourage entrepreneurship among the youth of the State and increase their participation in the public procurement, purchase preference, relaxation in the required technical qualifications related to past experience and financial turnover was granted to the startups.

Generally, the Department of Promotion of Industry and Internal Trade (DPIIT)registered start-ups are exempted from the prior-experience criteria. Hence, winning the contract without prior experience helps you get breakthrough for further projects.

The Startup Ecosystem in Rajasthan

Rajasthan has been recognized as one of India's top-performing states, with several factors contributing to its growth. Among these are its proximity to Delhi, the unique blend of urban and semi-urban infrastructure found in Jaipur, and the government's emphasis on startups. While Jaipur has emerged as a leading hub for startups in Rajasthan, Udaipur and Jodhpur have also been identified as significant centers for entrepreneurship.

The iStart scheme, launched by the Rajasthan government, has been a significant boost for startups in the state. In fact, Rajasthan is one of the pioneering states in the country to initiate such a program. The government has created a web portal that serves as a one-stop-shop for all initiatives under the startup policy. The iStart Rajasthan program is aimed at fostering innovation, generating employment opportunities, and encouraging investment in the state.