The Kerala government has raised, from ₹5 lakh to ₹20 lakh, the cap on direct purchase of software products, services and mobile apps from ventures cleared by the Kerala Startup Mission.
Only preconditions for eligibility are that the start-up needs to be registered with the Department of Industrial Policy and Promotion, Government of India, and registered in Kerala.
With this, various departments can purchase from start-ups products worth ₹20 lakh every year, excluding GST, an official said here. The decision is in response to a proposal submitted by the Mission to project the government as an early marketplace. This, according to the official, is expected to boost the start-up ecosystem in the State in a big way.
Saji Gopinath, CEO of the Mission, said the ₹5-lakh ceiling presented a challenge in enhancing the scope of innovative products in various departments.
According to him, the recent floods had proven the start-ups’ potential role in disaster management.
As per the relevant Government Order, one purchasing officer, however, cannot purchase more than two applications in one year from one start-up.