FINMIN Orders : Amendment to Manual for Procurement of Consultancy & Other Services (MfPCOS), 2017

Amendment to Manual for Procurement of Consultancy & Other Services (MfPCOS), 2017

No.F.1/7/2021-PPD-2
Government of India
Ministry of Finance
Department of Expenditure
Procurement Policy Division (PPD)

264-C, North Block, New Delhi
Dated the 2nd August, 2021

OFFICE MEMORANDUM

Subject: Amendment to Manual for Procurement of Consultancy & Other Services (MfPCOS), 2017.

Ministry of Commerce and Industry, Department for Promotion of Industry and Internal Trade has vide Gazette Notification No. G.S.R. 127(E) dated 19.02.2019 amended the definition of “Startup.” It has, therefore, been decided to partially modify para 1.9.1(ix) of Manual for Procurement of Consultancy & Other Services, 2017 as under:

Existing provision of para 1.9.1(ix) of MfPCOS, 2017

Amended para 1.9.1(ix) of MfPCOS 2017

The condition of prior turnover and prior experience may be relaxed for Startups(Rule 173 (i) of GFR 2017) (as defined by Department of Industrial Policy and Promotion) subject to meeting of quality &technical specifications and making suitable provisions in the bidding document. The quality and technical parameters are not to be diluted. As defined by Department of Policy &Promotion (DIPP) an entity shall be considered as a ‘start-up – a) Up to five years from the date of its incorporation/registration, b) If its turnover for any of the: financial years has not exceeded Rs.25 (Rupees Twenty five) crore c) It is working towards innovation, development, deployment of commercialisation of new products, processes or services driven by technology or intellectual property; d) Provided further that in order to obtain benefits a start-up so identified under the above definition shall be required to obtain a certificate of an eligible business from the Inter-Ministerial Board of Certification.

The condition of prior turnover and prior experience may be relaxed for Startups(Rule 173 (i) of GFR 2017) (as defined by Department for Promotion of Industry and Internal Trade) subject to meeting of quality & technical specifications and making suitable provisions in the bidding document. The quality and technical parameters are not to be diluted. As defined by Department for Promotion of Industry and Internal Trade (DPIIT) an entity shall be considered as a Startup: a) Up to ten years from the date of its incorporation/ registration, b) If its turnover for any of the financial years has not exceeded Rs. 100 (Rupees Hundred) crore. c) It is working towards innovation, development, or  improvement of products or processes or services, or if it is a scalable business model! with high potential of employment generation or wealth creation. d) Provided further that in order to obtain benefits a Startup so identified under the above definition shall be required to be recognized as Startup by DPIIT.

2. This OM is also available on our website www.doe.gov.in -> Notification -> Circular –> Procurement Policy OM. Hindi version of this OM will follow.

Kanwalpreet
Director (Procurement Policy)