GeM Startup Runway: Exemptions from Prior Turnover & Experience for DPIIT Startups in Pune

Winning Government Contracts via the GeM Startup Runway in Pune

Public procurement by Central Ministries, State Government departments, and Public Sector Undertakings (PSUs) represents an annual market worth trillions of rupees. Historically, young startups were completely shut out of government tenders due to stringent eligibility clauses demanding 'Minimum 3 Years Prior Experience' and 'Multi-Crore Prior Turnover'. The GeM Startup Runway initiative fundamentally dismantled these barriers.

Under Rule 173(i) of the General Financial Rules (GFR) 2017 and Ministry of Commerce directives, all government procuring entities are legally mandated to relax conditions of prior turnover and prior experience for DPIIT-recognized startups, subject to meeting technical specifications and quality standards. Furthermore, startups are 100% exempt from submitting Earnest Money Deposit (EMD) bid security. KOKJAGUAR Consultancy helps Pune startups register on GeM and secure government purchase orders. Explore our GeM Portal advisory services.

Key Statutory Concessions for Startups on GeM

• Zero Prior Turnover Requirement: Bids cannot be rejected due to low balance sheet revenues.
• Zero Prior Experience Requirement: New technological solutions can bid on par with legacy corporate vendors.
• 100% EMD Exemption: Bidders do not need to block working capital in bank guarantees or tender security deposits.
• Direct Purchase Window: Government buyers can purchase innovative products directly through the Startup Runway catalog without tender bidding up to statutory limits.