In a bid to strengthen the state's startup ecosystem, the Kerala government increased the upper limit on purchases of products and services from startups registered with KSUM from Rs 1 crore to Rs 3 crore.

The Kerala Startup Mission (KSUM) announced the raising of the public procurement ceiling on purchases by government departments, public sector undertakings (PSUs), boards, corporations, and local self-government (LSG) institutions from ventures registered under the KSUM in a statement on Wednesday.

KSUM is the state government's nodal agency for entrepreneurship development and incubation operations.

The increase in the monetary ceiling in public procurement will allow more government departments to harness new technological solutions from startups.

The benefits enjoyed by IT-related startups have been extended to non-IT enterprises, according to the government order (GO) issued in this regard, allowing PSUs, boards, businesses, and LSGs to purchase products and services from non-IT startups registered under KSUM.

Kerala has 49 parent departments and over 1,000 sub-organisations, and according to the GO, all government agencies can purchase products and services from startups registered with KSUM, according to the statement.

The government also increased the limit for availing services and products from startups with the unique ID of KSUM without going through tender procedures from Rs 20 lakh to Rs 50 lakh.

In this regard, the Stores Purchase department and Electronics and Information Technology department have issued terms and conditions along with guidelines on the procurement of products and services of IT and non-IT startups from KSUM.

The government has also issued rules to departments on how to obtain products and services from startups through projects such as the Market Placement Scheme, Demand Day, Demo Day, Direct Procurement, and Innovation Zone.

Startups that have completed three years from the date of their registration or three years from the date of product approval by KSUM are eligible for the scheme's benefits, according to the new order. Furthermore, any startup that relocates to Kerala can profit from the 'Government As a Marketplace' programme.

"Government As a Marketplace" is the state's flagship project for purchasing new services and products from startups to government departments.