Published: 10 October 2026
StartupFeed Quick Take
- The Uttar Pradesh cabinet approved the Startup Procurement Scheme-2026 on October 9, 2026.
- A new UP Startup E-Marketplace will let state departments buy from registered startups, with direct orders of up to Rs 50 lakh and up to Rs 1 crore in sunrise sectors.
- Today a department can buy only up to Rs 25,000 without a tender, so the direct limit rises about 200 times.
Uttar Pradesh approved the Startup Procurement Scheme-2026 on October 9, letting state departments buy products and services straight from registered startups through a new government e-marketplace.
Chief Minister Yogi Adityanath chaired the cabinet that cleared the scheme in Lucknow. The UP Startup Mission will build and run the UP Startup E-Marketplace. Startups registered under the state’s startup policy can list products there and win work orders from government departments.
What the UP Startup Procurement Scheme Changes
The jump is big. Today a UP department can buy only up to Rs 25,000 without a tender. Purchases up to Rs 50,000 run through the Government e-Marketplace on three quotations.
The new scheme lets a registered startup win direct orders of up to Rs 50 lakh, with no tender. That lifts the ceiling about 200 times. The Times of India first reported these limits when the state framed the proposal.
| Purchase route | Limit | Tender needed |
|---|---|---|
| Direct buy, any vendor (now) | Rs 25,000 | No |
| Via GeM, three quotations (now) | Rs 50,000 | No, three quotes |
| Direct from a registered startup (scheme) | Rs 50 lakh | No |
| Direct from a startup, sunrise sectors (scheme) | Rs 1 crore | No |
Sunrise sectors get the higher Rs 1 crore limit. The reported list covers green energy, drones, deep-tech, artificial intelligence, quantum computing, blockchain, agri-tech, med-tech and space technology.
Outside those sectors, orders between Rs 50 lakh and Rs 1 crore go through limited tenders. Only registered startups can bid. The scheme also eases some Government e-Marketplace rules for these buys.
Departments may set aside up to 0.5% of their yearly budget for startup purchases. That part is not compulsory. The marketplace still has to be built before the first order flows.
The prize is a very large buyer. State figures put UP’s Government e-Marketplace purchases past Rs 1 lakh crore since 2016, over 30% of all state buying on it. In 2026-27 till July, UP spent Rs 7,235 crore this way.
What this means for you: If you run a StartInUP-registered startup with a product a government office could use, the state is now a direct buyer. Get it listed on the UP Startup E-Marketplace once it opens, and keep your StartInUP registration current.
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