Karnataka rolls out Government First Programme with ₹25-crore startup outlay

The Karnataka government has rolled out the Government First Programme, backed by a financial outlay of ₹25 crore, to assist homegrown startups in securing institutional contracts by addressing operational bottlenecks within public departments. Formulated under the Karnataka Startup Policy 2025–30 through the state's ELEVATE framework, the initiative is designed to support approximately 100 technology enterprises over a three-year implementation window.

Public procurement has traditionally presented formidable entry barriers for young technology firms due to protracted bureaucratic procedures and a strong institutional preference for legacy vendors. The newly established programme seeks to bridge this gap by positioning state agencies as early-stage customers, enabling selected enterprises to pilot and validate their deployment-ready innovations within live administrative environments.

Under the operational framework, eligible Karnataka-based startups can secure pilot work orders valued at up to ₹25 lakh each. Departmental oversight and administrative allocations account for 5% of the total ₹25-crore fund, leaving the remaining 95% strictly dedicated to direct startup support and project execution. Participating innovators retain full ownership of their intellectual property during and after the testing phase.

The inaugural call for applications directs focus toward specific civic and infrastructure priorities. Initial problem statements have been issued by Praja Seva for citizen-centric governance and the Bangalore Water Supply and Sewerage Board for urban water utilities. The designated operational areas encompass AI-enabled grievance redressal, unified citizen call centres, e-Office workflows, non-revenue water reduction, treated wastewater planning, asset management, and digital twin implementations.

Unlike conventional challenge models that rely solely on top-down administrative prompts, the initiative incorporates a startup-initiated pathway. This allows qualified entities to proactively approach ministries with their own deployment-ready technologies even in the absence of a formal prior problem statement. The evaluation mechanism proceeds through structured technical appraisals, outcome assessments, and potential transitions toward wider departmental procurement.

Industry representatives have responded to the announcement with cautious optimism. While trade bodies note that providing direct market access will help smaller firms scale operations and generate employment, business leaders have emphasized the necessity of maintaining transparent procurement workflows and ensuring timely disbursements to safeguard cash flows for early-stage ventures.

Applications for the first phase of the scheme remain open until October 23, 2026, closing at 5 PM IST. Successful pilot evaluations completed over the coming quarters are expected to pave the way for formal procurement integration across wider state government departments.