Bhubaneswar: In a bid to remove hurdles for the startups and improve ease of doing business, Odisha government made a change in tender rules for the startup entrepreneurs by exempting them from Earnest Money Deposit (EMD).
As per the notification released by the Finance department on April 19, the startup entrepreneurs need not to 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 to development and growth, Government have been pleased to exempt the local startups as defined under para-7(vi) and certified by Nodal Agency in para-7(v) of Odisha Startup Policy-2016 from deposit of Earnest Money, while participating in tenders of Government Departments and agencies under its control, a release said.
The startup entrepreneurs will get facility to deposit only 25% amount of performance security if 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 release said.
Notably, the government has been providing this facility to the local Micro, Small & Medium Enterprises (MSMEs) for ease of doing business in Odisha.