PPP Mode

Salient Features of the Scheme :

• An Industry Partner (IP) is associated with each ITI .
• IP is selected by the State Government in consultation with Industry Associations.
• Institute Management Committee (IMC) is constituted/ reconstituted with IP or its representative as Chairperson.
• In IMC 4 members nominated by IP and 5 by State Govt. and Principal of ITI to be ex-officio member Secretary.
• Interest free loan of upto Rs.2.5 crore to be given directly to IMC and also to be repaid by it.
• IMC is registered as a society and entrusted task of managing the ITI.  It is given financial and academic autonomy. IMC will be allowed to determine upto 20% of the  admissions.
• A Memorandum of Agreement is signed among the stake holders.
• Institute Development Plan (IDP) is prepared by IMC giving KPIs and financial requirements for next 5 years.
• IDPs are scrutinized   by State Steering Committee and sent to Central Government.
• After approval of IDPs Central Govt. releases interest free loan upto Rs.2.5 crore directly to the IMC Society.

Clauses of MOA :
Parties signing the MOA

• Government of India
• State Government
• Industry Partner
• Institute Management Committee
• The Representative of the Industry Partner signs on behalf of Industry Partner and as Chairperson of the IMC.

Role of Central Government

• To provide interest free loan of Rs. 2.5 Crore.
• To establish National Steering Committee to guide implementation and monitoring of the scheme.
• To set up National Implementation Cell for management, monitoring & evaluation of the scheme.

Role of State Government (Sec.- B)

• To constitute/reconstitute IMC and register it as a society.
• To set up State Steering Committee and State Implementation Cell for supervising and implementation of the scheme at State level.
• To delegate adequate administrative and financial powers to IMC.
• To ensure that vacancies of Instructors in the ITI do not exceed 10% of sanctioned strength.
• To ensure that additional posts of Instructors required by the ITI as per the IDP are filled.
• To continue to provide budget for office, administrative and other recurring expenditure.

Role of Industry Partner (Sec.- C)

• To nominate a representative as Chairperson of the IMC.
• To nominate four other Members on the IMC.
• To provide training to faculty members and on the job training to trainees.
• To make financial contribution.
• To contribute machinery and equipment for use On Our ITI in the ITI.

Role of the IMC (Sec.- D)

• To develop the IDP for the ITI.
• To estimate skill requirement and take steps to produce graduates in the ITI accordingly.
• To identify training needs of faculty and depute them for training.
• To implement the scheme as per the IDP and monitor its progress.
• To set up suitable mechanism to obtain feed back from trainees and industry.
• To set up placement cells in the ITI to guide/help graduates in employment/self employment.
• To determine admissions in the ITI upto 20%.

Monitoring Mechanism (Sec.- E)

• Key Performance Indicators (KPIs) as yearly targets for next five years.
• IMCs to submit quarterly reports to the SSC.
• SSC to submit consolidated report for the State.
• In case of unsatisfactory performance, IMC to submit report to SSC.
• SSC to forward this report to NSC with its comments and NSC to take suitable action.

Release of funds, utilisation and repayment (Sec.- F)

• Funds received to be kept in a separate Bank Account opened in a public sector Bank in the name of IMC  Society.
• Any other funds received by the IMC to be deposited in this bank account.
• Loan to be used for the following purposes
  i) civil works upto 25%, ii) seed money upto 50%, iii) Machinery and Equipment, iv) Other activities
• Loan to be repaid in 30 years with a moratorium of 10 years and thereafter payment in equal installments in 20 years.
• In case of default in repayment, NSC has the power to impose penalty or take any other action.
• Central Government has power to issue instructions in respect of utilisation of funds of the IMCs.

Miscellaneous provisions (Sec.- G)

• IMC Society to maintain regular books of accounts as per double entry accounting system.
• Central Government may call for books of accounts and documents for any accounting year and authorise an officer for their inspection.
• MOA to be effective upto the repayment of the loan.
• After the first five years, KPIs may be set in blocks of next five years till the period of repayment.
• All issues to be resolved amicably through consultations and LEM, GoI to be the final authority in case of dispute.
• For successful implementation the MOA may be amended during implementation of the scheme in consultation with all the three parties.