Entrepreneurs in Andhra Pradesh get a major leg-up as govt. allows startups to bid for tenders

Andhra Pradesh government offers registered startups the opportunity to bid for tenders up to ₹50 lakh without prior experience.

The government’s recent announcement of allowing registered startups to bid for tenders up to ₹50 lakh (project cost/investment) looks like a golden offer if the authorities concerned execute it in a well-planned manner.

So far, startups were not allowed to participate in tenders to get projects and showcase their skills and innovative ideas. They relied on individual platforms and capabilities. Many startups were unable to succeed in establishing themselves due to lack of proper support from the government.

But, they can now compete with established enterprises to win projects through the tenders. This will also help entrepreneurs who are looking for young talented people for their projects.

Apart from allowing startups to participate in tenders, there is no need for an Earnest Money Deposit (EMD), no prior turnover or prior experience. Most importantly, the cost of tender documents will also be completely waived.

The basic eligibility is that the startups should be registered with the Department for Promotion of Industry and Internal Trade (DPIIT).

This offer is applicable to all projects in government departments, corporations like GVMC, universities, development authorities like VMRDA, public sector undertakings (like Vizag steel plant), special purpose vehicles (SPVs), societies, and trusts, in the State.

“Preferential Market Access (PMA) for startups is a significant opportunity for startups. A.P. could be the first State in India to provide startups with such exclusive access to government markets. This initiative will undoubtedly boost startup growth in A.P. For effective implementation of this policy, we suggest steps like sensitisation of all departments about the government’s offer to ensure awareness and compliance,” said Sreedhar Kosaraju, Director, APDTI Network.