RTPP Rule 32 Direct Purchase Privilege for Rajasthan Startups
Under standard procurement rules, any government purchase above ₹10,000 to ₹1,00,000 requires floating open or limited competitive tenders.
However, to foster home-grown technological and industrial innovation, the Government of Rajasthan amended Rule 32 of the Rajasthan Transparency in Public Procurement (RTPP) Rules 2013 via Finance Department Notification No. F.1(1)FD/GF&AR/2021 dated 17.03.2023 (G.S.R. 143).
The Statutory Privilege
Under RTPP Rule 32 read with Notification G.S.R. 143:
- State government departments, directorates, boards, universities, and autonomous bodies can award direct work orders up to ₹25.00 Lakhs directly to recognized startups without issuing an open competitive tender.
- Annual Limit: A recognized startup can receive between 3 to 6 direct work orders per financial year, providing up to ₹1.50 Crore in non-tendered government contract revenue.
- Pricing Verification: The procuring entity verifies pricing reasonableness through departmental committees or reference rates on the iStart eBazaar portal.
Eligibility Criteria for Startups
To qualify for direct purchase under Rule 32:
- Entity Type: Must be a registered Private Limited Company, Limited Liability Partnership (LLP), Registered Partnership, or Sole Proprietorship based in Rajasthan.
- iStart QRate Evaluation: The startup must be evaluated and awarded a Bronze, Silver, Gold, or Platinum QRate rating by the State Level Scrutiny Committee.
- eBazaar Catalogue Listing: The startup’s products or services must be published with transparent unit pricing on the official iStart eBazaar marketplace.
Departmental Procurement Procedure
When a Rajasthan government officer wishes to procure via Rule 32:
- The department identifies the required product or service on iStart eBazaar.
- The competent financial authority issues an administrative and financial sanction (A&FS) citing Rule 32 of RTPP Rules 2013.
- The work order is generated directly through the portal without any requirement for EMD or bid security.