ORDER : This Writ Petition is filed under Article 226 of the Constitution of India seeking a Writ of Mandamus declaring the action of the 2nd respondent in rejecting/disqualifying the technical bids of the petitioner pertaining to supply, installation and Commission of Centralised Control Monitoring System (CCMS) in all the Gram Panchayats of the State of Telangana in Tender Notification Nos. (a) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -1/2020-21 dt.05.03.2021, (b) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -2/2020-21 dt.05.03.2021, (c) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -3/2020-21 dt.05.03.2021, and (d) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -4/2020-21 dated 05.03.2021, as bad in law, illegal, arbitrary and in violation of Article 14 of the Constitution of India and consequently direct the respondent No.2 to qualify the technical bids of the petitioner and pass such other order or orders as this Hon’ble Court may deem fit and proper in the circumstances of the case. 2. Brief facts leading to the filing of this Writ Petition are that the petitioner is a registered partnership firm, primarily engaged in the business of providing remote data acquisition systems and cloud-based Internet of Things (“IoT”) platforms. It is recognized as a ‘Startup’ by the Department of Promotion of Industry and Internal Trade, Ministry of Commerce and Industry, Government of India under the ‘Startup India’ Scheme. 3. Government of Telangana had nominated respondent No.2, which is a State owned company that is responsible for planning and implementation of policies for promoting renewable energy and energy conservation activities and to import, upgrade and adapt upcoming technologies in the areas of renewable energy and energy conservation, as State Designated Agency to coordinate, regulate and enforce the provisions of the Energy Conservation Act, 2001 within the State of Telangana vide G.O.Ms.No.19 dt.03.07.2015. In the year 2020, a company by name M/s. Energy Efficiency Services Limited had entered into an agreement to convert all the streetlights in the Gram Panchayats of Telangana to LED lights. In order to ensure smooth implementation of the transformation, M/s. Energy Efficiency Services Limited had entered into an agreement with respondent No.2 to act as the PMC for the programme and to encourage local manufacturers, vendors and suppliers for procurement of the necessary materials. In order to ensure smooth implementation of the transformation, M/s. Energy Efficiency Services Limited had entered into an agreement with respondent No.2 to act as the PMC for the programme and to encourage local manufacturers, vendors and suppliers for procurement of the necessary materials. Accordingly, respondent No.2 floated an E-Tender dt.05.03.2021 for supply, installation and commission of Centralised Control Monitoring System (CCMS) in all the Gram Panchayats of the State of Telangana in four clusters as (a) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -1/2020-21 dt.05.03.2021, (b) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -2/2020-21 dt.05.03.2021, (c) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -3/2020-21 dt.05.03.2021, and (d) Tender No.TSREDCO/EC/E-Tender- CCMS/Cluster -4/2020-21 dated 05.03.2021. As per the terms of the tender documents released by respondent No.2, the bidders claiming any kind of relaxations/exemptions under the ‘startup’ clause would be awarded maximum of 25% of the work in connection with the above project. 4. The petitioner had decided to place its bid for the four proposed tenders that had been called for by respondent No.2. The tenders were open to all sorts of companies, irrespective of they being a startup company or not. However, in view of the fact that some qualifications like prior experience of having worked on a project of a certain value, completion certificates, etc., could not be made applicable for a startup company, many of the requisite conditions and qualifications were relaxed for companies falling under the category of ‘Startup’ companies and in order to give boost to the ‘Make in India’ policy of the Central Government, these kinds of relaxations were put in force. The petitioner being a startup firm registered under the ‘Startup India’ Scheme, collated all the necessary documents as mandated by the Tender documents and submitted the same to respondent No.2 and duly placed its bid for the above mentioned tenders on 04.05.2021, both technical as well as financial bids. 5. The petitioner was, thereafter, required to depute its technical personnel for demonstration of the samples submitted as per the terms of the tender documents as part of the technical evaluation procedure. The technical team of the petitioner visited the office of respondent No.2 on 28.05.2021 and demonstrated the product of the petitioner before the officials of respondent No.2. Thereafter, when the technical bid was opened, respondent No.2 held that the petitioner was disqualified. The technical team of the petitioner visited the office of respondent No.2 on 28.05.2021 and demonstrated the product of the petitioner before the officials of respondent No.2. Thereafter, when the technical bid was opened, respondent No.2 held that the petitioner was disqualified. On coming to know of the said disqualification, the petitioner sent an e-mail dt.10.08.2021 to respondent No.2 requesting to share the reasons/documents in support of the order of disqualification. 6. Respondent No.2 vide e-mail dt.12.08.2021 shared the reports of the technical committee of the respondent in respect of all four clusters. The reason for disqualification was that the petitioner has failed to furnish the letter in format of annexure I to be deemed eligible for relaxed procurement norms and certificate of approval for availing exemptions as per the Government of Telangana, Department of Information Technology, Electronics and Communication, Government Order bearing G.O.Ms.No.8 dt.28.04.2018. It was also stated that the petitioner had failed to furnish the EMD, experience and turnover statements as per the tender documents. Thus, from the above communication, the petitioner understood that it was being treated not as a ‘startup’ but was treated like any other vendor. According to the petitioner, G.O.Ms.No.8 dt.28.04.2018 was applicable only to companies falling under the category of ‘Startup Telangana’ and since the petitioner was registered under the category of ‘Startup India’, it could not have been disqualified. 7. In view of the above, the petitioner filed the present Writ Petition stating that the impugned orders passed by respondent No.2 are mechanical, suffering from non-application of judicious mind and complete misinterpretation of the terms and conditions of the tender documents. According to the petitioner, the petitioner being registered under ‘Startup India’ Scheme of the Central Government had duly complied with all the terms and conditions of the tender documents that were applicable to the companies/firms registered under the ‘Startup India’ scheme and hence its technical bids ought not to have been rejected and the petitioner should not have been disqualified on such sole reason. It is also stated that neither the petitioner nor anybody who participated in the tender process was informed by respondent No.2 that they were required to furnish documents as per G.O.Ms.No.8 dt.28.04.2018 and that neither the tender documents nor any corrigendum issued to the tender documents, mandated the startups to furnish the documents as per G.O.Ms.No.8. It is also stated that neither the petitioner nor anybody who participated in the tender process was informed by respondent No.2 that they were required to furnish documents as per G.O.Ms.No.8 dt.28.04.2018 and that neither the tender documents nor any corrigendum issued to the tender documents, mandated the startups to furnish the documents as per G.O.Ms.No.8. It is also submitted that respondent No.2 has not issued any notice to the petitioner before disqualifying it from the tender process and therefore it is in violation of the principles of natural justice. It is further stated that respondent No.2 has disqualified the petitioner only after receiving financial bid and therefore, the petitioner’s case is that respondent No.2 deliberately disqualified the petitioner on technical grounds after finding that the petitioner’s financial bid was low. Thus, according to the petitioner, the action of the respondents was in violation of the petitioner’s right to carry on trade and business as enshrined under Articles 19(1)(g) and 301 of the Constitution of India. It was therefore prayed to direct the respondents to consider the technical as well as financial bids filed by the petitioner. 8. Learned counsel for the petitioner, Sri Santosh Jadhav, reiterated the submissions made in the writ affidavit, while learned Special Government Pleader working in the office of the learned Advocate General submitted that the petitioner is admittedly registered under ‘Startup India’ and was claiming exemptions under G.O.Ms.No.8 dt.28.04.2018 but did not fulfil the conditions under the said G.O. According to the learned Government Pleader, the petitioner failed to file details under Annexure-I of G.O.Ms.No.8 dt.28.04.2018. He submitted that since the petitioner has failed to comply with the requirements under G.O.Ms.No.8, the petitioner has been disqualified at the stage of opening of technical bid itself. He submitted that in view of the interim orders of this Court on 26.08.2021 staying all further proceedings in respect of the impugned tenders, the tenders could not be finalised and the entire transformation of electrification project to LED lights has been stalled. Therefore, the learned Government Pleader prayed for dismissal of the Writ Petition. 9. The learned counsel for the petitioner submits that the General Financial Rules, 2017 issued by the Ministry of Finance, Government of India are applicable to all State Governments. Therefore, the learned Government Pleader prayed for dismissal of the Writ Petition. 9. The learned counsel for the petitioner submits that the General Financial Rules, 2017 issued by the Ministry of Finance, Government of India are applicable to all State Governments. As per the General Financial Rules, 2017, the concessions/exemptions given to the startsup are applicable to companies which are registered under Startup India and hence the petitioner is eligible for participation and consideration in the tenders floated by the Government of Telangana. He has also referred to the Office Memorandum dt.25.07.2017 issued by the Ministry of Finance, Department of Expenditure, Procurement Policy Division regarding amendment to Rule 170(i) of General Financial Rules (GFR), 2017 and the Office Memorandum dt.27.07.2017, wherein it is clarified that for startup companies and start-ups medium enterprises in public procurement, the bid security and also prior experience and prior turnover criteria are not applicable. 10. In rebuttal, the learned Government Pleader submitted that while framing the start-up policy, the Union of India had directed the respective States to formulate their own start-up policy and the Hon’ble Minister of Commerce and Industry, while replying to a question raised in the Parliament, had given the details of States which have formulated startup policies. He has drawn the attention of this Court to the reply to the question raised in the Parliament which stated that only 29 States had formulated their startup policies and 36 States had recognized startups under startup (India) scheme. Therefore, according to him, each State has formulated its own scheme of start-ups and hence, the petitioner is required to give details of being a Startup in Annexure I to be recognized as a startup in the State of Telangana to claim exemptions in filing of the tender documents. 11. Having regard to the rival contentions and the material on record, it is seen that the Government of India has framed startup policy and vide Office Memorandum No.F.20-2/2014-PPD(H) dt.27.07.2017 has relaxed the norms for Startups Medium Enterprises in public procurement regarding prior experience and prior turnover, etc. However, it is mentioned therein that the Memorandum is applicable to Central Ministries/Departments. The conditions of prior experience and prior turnover in public procurement are relaxed subject to meeting of quality and technical specifications by Startups. This relaxation is applicable to all Startups (and not limited to manufacturing sector). However, it is mentioned therein that the Memorandum is applicable to Central Ministries/Departments. The conditions of prior experience and prior turnover in public procurement are relaxed subject to meeting of quality and technical specifications by Startups. This relaxation is applicable to all Startups (and not limited to manufacturing sector). Hence, the Department of Public Enterprises was directed to issue appropriate instructions to Central Public Sector Undertakings in this regard. Further, Office Memorandum No.F.20/2/2014-PPD(Pt.) dt.25.07.2017 has relaxed the condition of furnishing bid security (EMD) for the start-ups while participating in the tenders for public procurement. There is a reference to the start-ups which are recognised by the Department of Industrial Policy & Promotion (DIPP). The petitioner is admittedly registered as a startup under DIPP. However, as pointed out by the learned Government Pleader, these Official Memoranda are applicable to all Central Government Ministries/Departments. In order to apply the said exemptions, each State Government has to formulate its own policy and in accordance therewith, the Government of Telangana has issued G.O.Ms.No.8 dt.28.04.2018. Para-5 of the said G.O. reads as under: “5 Eligible Startups can avail the following benefits while participating in Government procurement processes of technology-based solutions through TSTS: i. Prior turnover – Startups shall not be subjected to any prior turnover criterion for being eligible to participate in a government procurement process ii. Prior experience – Startups shall not be required to have any prior experience of having participated in a public procurement process iii. Exemption from Submission of EMD – Startups shall not be required to submit an Earnest Money Deposit to participate in public procurement process iv. Financial advantage – Startups shall be given a 15% relaxation on their submitted financial quotations pertaining to procurement, subject to meeting of quality and technical specifications (process for the same is elaborated below) Explanation: a) If a startup quotes Rs X to be paid to them for goods/services in response to an RFP, then the following calculation is made: Y=X*85/100 Rs Y is then used for all subsequent calculations as the financial bid of the startup for evaluation irrespective of the kind of evaluation i.e. QCBS, LCS etc. b) If a startup offers to pay Rs X for owning/operating goods/services in response to an RFP, then the following calculation is made: Y=X*115/100 Rs Y is then used for all subsequent calculations as the financial bid of the startup for evaluation irrespective of the kind of evaluation i.e. QCBS, LCS etc.” Further, Para-4 of the said G.O. also reads as under: “4 In order to be deemed eligible, the Startup must submit a covering letter requesting for this relaxation in the format attached in Annexure 1. The Startup shall then be issued a certificate as prescribed in Annexure 2 which may then used for availing the benefits outlined in this Order..” 12. From these paragraphs, it is clear that in order to be eligible under para-5 of the said G.O., the petitioner has to submit the details under para-4 in the format attached in Annexure-I to the said G.O. For the purpose of completeness, the copy of Annexure-I is reproduced hereunder: “Annexure-I (to GO Ms.No:08, ITE&C Department, dated:28.04.2018) Letter Format to be Deemed Eligible for Relaxed Procurement Norms To The Principal Secretary to Government Information Technology, Electronics & Communications Department Government of Telangana D Block, 2nd Floor, Telangana Secretariat Hyderabad-500022 Sir, Sub: Request to extend relaxed procurement norms to our Startup M/s____________ *** I, < >, request you to extend relaxed procurement norms as outlined in GO.Ms.No.__, ITE&C Dept., dt: 04.2018, to our startup M/s _________________. I certify that we meet all the necessary eligibility criteria as mentioned in the GO and am attaching proofs for the same as requested. The information provided in this letter and attachments is true to the best of my knowledge and I understand that the Government may revoke this relaxation in case of any discrepancy. Looking forward to a positive response. Yours Sincerely, < > Ph:______________ Email:_____________________________ Attached: 1. Business Plan of the startup 2. Self-attested copy of PAN Card 3. GST Registration Number of the Corporate entity along with self-attested copies 4. ROC Copy/Partnership Deed/Trade License Copy 5. Audited Financial Statements for a minimum of 3 years or since incorporation of company 6. Memorandum of Association and Articles of Association documents, if available 7. Certificate from Provident Fund/Bank/Profession Tax/Income Tax/any other competent authority office confirming the no. of the employees. 8. Copies of educational certificates of the technical staff” 13. ROC Copy/Partnership Deed/Trade License Copy 5. Audited Financial Statements for a minimum of 3 years or since incorporation of company 6. Memorandum of Association and Articles of Association documents, if available 7. Certificate from Provident Fund/Bank/Profession Tax/Income Tax/any other competent authority office confirming the no. of the employees. 8. Copies of educational certificates of the technical staff” 13. On a perusal of the said Annexure and the documents to be annexed thereto, it is evident that these documents are only to ascertain that the claimant is a ‘Startup’ company and is eligible for the exemptions. Therefore, every company which is claiming the exemptions under Para 5 of G.O.Ms.No.8, has to necessarily annex the documents mentioned in Annexure-I along with the covering letter and after considering the same, Annexure-II is issued by the Government and thereafter the petitioner would be eligible for participation or consideration of its bids in the tender. If the petitioner is seeking exemptions under the Startup policy for the State of Telangana, then it has to follow the norm set up by the Government of Telangana for Startups for public procurement technology-based solutions through TSTS, i.e., G.O.Ms.No.8 dt.28.04.2018. The argument of the learned counsel for the petitioner that Clause (a) of Note 5 of Annexure-C of the Tender Document specifies that Startup has to submit the registration documents under Startup India/T-HUB and since the petitioner has submitted the registration documents under Startup India, it could not have been disqualified, is not acceptable. This Court finds that it is only one of the conditions to be fulfilled by the bidders and the relaxation given by the TS Government is governed by G.O.Ms.No.8 and the startups which are making claims for exemptions have to follow the conditions prescribed under G.O.Ms.No.8. Since the petitioner has failed to submit the details as required under Annexure-I to G.O.Ms.No.8, the respondents have rightly disqualified the petitioner and have not considered the technical as well as financial bids submitted by the petitioner. 14. The Writ Petition is accordingly dismissed. No order as to costs. 15. Pending miscellaneous petitions, if any, in this Writ Petition shall also stand dismissed.