Why Startups working with Govt cant work
Most of the Government contracts with state governments or psus have the clause for liquidated damages or price reduction.
The govt officers majorly abuse this clause and take heavy bribes to waive these damages.
In many cases the delay is because of the Govt and the Sme has to prove why the delay was not because of them otherwise officers threaten to levy liquidated damages.
Major companies ask smes to go bribe the govt officer and get LD waived off.
Till this is cleaned up, startups/ smes working with govt or psus will remain a pipe dream. more
The govt officers majorly abuse this clause and take heavy bribes to waive these damages.
In many cases the delay is because of the Govt and the Sme has to prove why the delay was not because of them otherwise officers threaten to levy liquidated damages.
Major companies ask smes to go bribe the govt officer and get LD waived off.
Till this is cleaned up, startups/ smes working with govt or psus will remain a pipe dream. more
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Oct 31
Why SME wants to supply Govt. Department, whether their products are:- 1-Sub-standards 2- Not interested to supply 100% physcically 3- Product rates are very high. 4-Not interested in timely delivery When Domestic & International market is open, why not they plan accordingly. more
Aug 23
I had been in purchase function in various positions -various locations in the MofD for decades. It has been my sad experience that many of them (1) do not keep schedule - Govt. supply receives a lower priority (2) trying to supply items of low quality/low workmanship. I was in the habit of making surprise inspections at the manufacturing spots. Many of them work with a philosophy to put appropriate lubricants to appropriate places. On the other hand, a number of honest SMEs had given up due to unwarranted harassment from the purchasers' end, internal squabbles in the SME etc. more
Aug 22
Most startups require SUPPORT & ASSISTANCE & GUIDANCE from the government. However in our country, exactly the opposite happens. Any private-public matter is a source of bribe money, illegal activities by the supposed public officers. This is why it becomes difficult for the genuine startups to start functioning. On the other hand large MNCs are now trying to float new ventures under the startup umbrella, which is not justified as once they have the financial backing and institutional support, new ventures by old & existing MNCs are no more classified as start ups, but only as new products. more
Aug 21
