Three points you will get to know in this article:
- “Start-up India” promotes Indian entrepreneurship and innovation.
- Criteria for startup classification are outlined.
- The initiative’s impact on EIL’s procurement process is discussed.
In his address on Independence Day, August 15, 2015, the Honorable Prime Minister of India, Shri Narendra Modi, introduced the “Start-up India” Initiative. This visionary campaign aims to cultivate the spirit of entrepreneurship and ignite innovation by nurturing a supportive ecosystem for burgeoning start-ups. Its core objective is to transform India into a realm of job creators, shifting away from its prior status as a nation primarily seeking employment opportunities. The formal inauguration of Start-up India took place on January 16, 2016, and comprehensive information can be accessed on the official website, “startupindia.gov.in.
UNVEILING THE STARTUP ESSENCE
In concise terms, a business entity (whether a Private Limited Company, Registered Partnership Firm, or Limited Liability Partnership) qualifies as a ‘start-up’ if it meets the following criteria:
- It is within its first five years since incorporation or registration.
- Its annual turnover has not surpassed Rupees 25 crore for any financial year.
- The entity is actively engaged in innovative pursuits, aiming to create, advance, implement, or market novel products, processes, or services driven by technology or intellectual property.
However, it’s important to note that any entity formed by dividing or reorganizing an existing business does not fall under the ‘start-up’ category.
Please be aware that sole proprietorships and public limited companies do not meet the ‘start-up’ criteria. Yet, a one person company, operating as a private limited company, is eligible for ‘start-up’ recognition.
EIL’S DRIVE TO FOSTER START-UPS IN THE REALM OF EIL’S PROCUREMENT
Currently, within EIL, suppliers/contractors/agencies need to fulfill certain technical/experience benchmarks to demonstrate their capability, as well as financial requirements (including turnover, net worth, and working capital) to showcase their financial stability. Bidders are expected to provide their PTR and financial statements as evidence of meeting these technical/experience/financial prerequisites.
The methodology outlined below will be implemented for procurement by EIL for start-ups included in the Government of India’s Start-up India Action plan, ensuring complete uniqueness and user-friendliness.
For Enlistment in EIL
Enrollment, as a whole, will persist adhering to necessary technical expertise, experience, and financial standards. However, startups will be exempt from fulfilling the obligatory PTR and past turnover/net worth prerequisites, ensuring a fully distinctive and user-friendly approach.
For Press Enquiries
Media inquiries regarding MRs will be released along with the necessary technical expertise, experience, and financial benchmarks. Nevertheless, for budding startups lacking the stipulated PTR and preceding revenue/net value/operating funds.
Conditions of Relaxation to Start-ups
- The safety of our plants is paramount, and as a result, the acceptance criteria for hydrocarbon projects are stringent. Flexibility in these aspects is limited, prioritizing safety and technical expertise. Therefore, based on the item’s technical complexity, safety importance, or specialization, all bidders, including start-ups, might need to meet specific technical or financial requirements, well-justified.
- We warmly welcome start-ups to contribute in non-hydrocarbon sectors like water, utility block, and novel technologies for enhancing efficiency and optimization. The door is open for innovation, depending on the specific project needs
The “Start-up India” Initiative, launched in 2015, seeks to cultivate a thriving entrepreneurial ecosystem in India. This article provides valuable insights into the eligibility criteria for startups and how the initiative is integrated into EIL’s procurement process, encouraging innovation and technological advancement.
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