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
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 of training 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.
Key Performance Indicators (KPIs) (Annex.-A)
o Internal efficiency
o External efficiency