Rajasthan S.O. 134 Startup Exemption Playbook
In traditional public procurement, government procuring entities demand that bidders demonstrate 3 years of audited annual turnover and past completion certificates of 50% to 80% of the tender value.
For an emerging startup or small manufacturer in Rajasthan, these conditions form an insurmountable barrier of entry. To eliminate this incumbent monopoly, the Government of Rajasthan enacted Finance Department Notification No. F.1(1)FD/GF&AR/2014 dated 19.11.2015 (S.O. 134).
The Legal Framework: RTPP Act Section 6(2)
Under Section 6(2) of the Rajasthan Transparency in Public Procurement (RTPP) Act 2012:
“The procuring entity shall not impose any condition in the pre-qualification or bidding documents which is non-competitive, unreasonable, or favors any particular bidder, except in accordance with state industrial policy concessions.”
Pursuant to this power, the state government mandated that for procurements up to ₹1.00 Crore:
- Prior Turnover Waiver: Recognized startups and local MSMEs shall not be required to submit prior annual financial turnover records.
- Prior Experience Relaxation: The requirement of prior performance or past experience shall be relaxed, provided the bidder demonstrates technical capability, requisite equipment, or certified personnel to execute the scope of work.
- Earnest Money Deposit (EMD) Concession: Under Rule 42(2) of the RTPP Rules, registered Rajasthan MSMEs are entitled to pay 0.5% EMD instead of the standard 2.0% bid security.
Documents Required to Claim S.O. 134 Concessions
When preparing your technical envelope (Cover 1) on eproc.rajasthan.gov.in, upload the following statutory declarations:
- Rajasthan Udyam Registration Certificate with Rajasthan manufacturing/service address.
- iStart Recognition Certificate / QRate Card issued by the Department of Information Technology & Communication (DoITC).
- Covering Letter Citing S.O. 134: Explicitly referencing Finance Department Notification S.O. 134 and requesting exemption from the prior turnover clause.
- Undertaking on Technical Competency: Self-declaration demonstrating technical capability, manpower, and production capacity.
Redressal If Procuring Entity Wrongfully Disqualifies
If a department rejects your technical bid citing “Insufficient Turnover” despite submitting S.O. 134 documentation, you have an immediate statutory right to file a First Appeal under Section 38 of the RTPP Act 2012 within 10 days before the designated First Appellate Authority.