Chennai: Tamilnadu government has announced concessions for start-up companies. A G.O. released in this regard said after careful consideration the government has decided to provide concessions to the registered startups for public procurements by a procuring entity for procurements that are below Rs 20 lakh in value.
Exemption from payment of earnest money deposit, condition of prior turnover and experience and waiving off of tender cost are the other concessions announced by the government.
The G.O. further said that the concessions are given to startups that are registered on the portal of Department for Promotion of Industry and Internal Trade (DPIIT) or Tamilnadu Startup and Innovation Mission (TANSIM).
“The startup should have registered office in Tamilnadu. Eligibility will be restricted to startups as defined in the Tamilnadu Startup and Innovation policy,” the GO added.
The GO further said that many startups struggle in the early stages because of lack of market for their products.
“Government is a major purchaser in the economy and Government patronage can solve the marketing problem of startups to a great extent. Moreover purchases by Government is a great sources of recognition to the startups. However, it is seen that startups face many entry barriers because Departments and Public Sector Undertakings (PSUs) impose restrictions like Earnest Money Deposit (EMD), prior turnover condition, prior experience condition, etc. Many State Governments have recognised this problem and have issued orders dispensing with such entry barriers for Startups. Government of Kerala, Karnataka and Telangana have already made such provisions by issuing necessary orders in this regard,” the order stated.
The order further said that it was therefore proposed to provide support to the Startups registered with Tamilnadu Starup and Innovation Mission (TANSIM) through StartupTN portal.