State Govt eases tender process for startups

In a bid to remove hurdles for the startups and improve ease of doing business, the State Government has made a change in tender rules for the startup entrepreneurs by exempting them from Earnest Money Deposit (EMD).

As per a notification released by the Finance Department on April 19, the startup entrepreneurs need not deposit the minimum security amount to participate in the bidding process invited by various departments and agencies of the Government.

Since all local startups are similar to MSEs and face challenges for development and growth, the Government has exempted them from depositing the EMD as defined under para-7(vi) and certified by Nodal Agency in para-7(v) of Odisha Startup Policy-2016 while participating in tenders of Government departments and agencies under its control.

The startup entrepreneurs would get facility to deposit only 25% of the performance security if they win the tender.

“If selected through bidding process, the aforementioned local startups would be required to make payment of 25% of performance security prescribed, if any, to ensure due performance of the contract,” the official release said.

Notably, the State Government has been providing this facility to the local Micro, Small & Medium Enterprises (MSMEs) for ease of doing business.