About Scheme

  1. PPP (IMC)
  2. About Scheme

"Up gradation of 1396 Govt. ITIs through Public Private Partnership"

Under the scheme of Up gradation of 1396 Government ITIs through PPP, 1227 Government ITIs have been covered and an Industry Partner (IP) is associated with every ITI covered under the scheme. Institute Management Committee (IMC), registered as a society, has been constituted in each ITI and is headed by the Industry Partner. Interest free loan of Rs. 2.50 crore per ITI was released by the Central Government directly to the IMC Society of the ITI. Financial and academic autonomy have been given to the IMC society. The interest free loan is repayable by the IMC with a moratorium of 10 years and thereafter in equal annual Instalments over a period of 20 years. 31 States/UTs have been covered under the scheme and Rs. 3067.50 crore has been released to 1227 Government ITIs throughout the country during the XI Plan period.

The Scheme was introduced in Government ITI Udhampur in 2007-08 and interest free loan of 2.5 Core released to IMC of ITI Udhampur in March 2008 which is to be utilized under different heads as per 5-Year Institute Development Plan (IDP) prepared by IMC. Under the Scheme Five New Trades have been introduced and two Trades have upgraded in ITI Udhampur. Detailed Guidelines of the Scheme are as below

GUIDELINES OF PPP SCHEME

Objective Of PPP Scheme

To improve the employment outcomes of graduates from the vocational training system, by making design and delivery of training more demand responsive.

Salient features of the Scheme:

  1. Selection of ITI and Industry: For each ITI to be covered under this Scheme, one Industry Partner is associated to lead the process of up gradation in the ITI. The Industry Partner is identified by the State Government in consultation with Industry Associations.
  2. Formation of IMC and its registration as a society:
    • An Institute Management Committee (IMC) is constituted/reconstituted for each selected ITI. The IMC is converted by the State Government into a Society under relevant Societies Registration Act. The IMC registered as a society is entrusted with the responsibility of managing the affairs of the ITI under the Scheme.
    • The IMC is led by the Industry Partner. In the IMC, the members are as follows:
      • Industry Partner or its representative as Chairperson.
      • Four members from local Industry to be nominated by the Industry Partner in such a way that the IMC is broad based.
      • Five members nominated by the State Govt.
        • i) District Employment Officer,
        • ii) One representative of the State Directorate dealing with ITIs,
        • iii) One expert from local academic circles,
        • iv) One senior faculty member,
        • v) One representative of the students.
      • Principal of the ITI, as ex -officio member secretary of the IMC Society.
  1. Signing of Memorandum of Agreement:
    • A Memorandum of Agreement (MoA) is signed among the Central Government, State Government and the Industry Partner in which the terms and conditions for participating in this Scheme and the roles and responsibilities of different parties are set out. This MoA is signed by the Industry Partner or its representative on behalf of the IMC also as its Chairman. The MoA is effective up to the repayment of the loan provided to the IMC.
    • An interest free loan of up to Rs. 2.5 crore is given by the Central Govt. directly to the IMC for up gradation of the ITI into a centre of excellence. The IMC is delegated the power to determine up to 20% of the admissions in all trades existing in the ITI.The specific functions and responsibilities of the IMC for up gradation of the ITI are spelt out in the MoA and included in its Memorandum of Association and Rules and Regulations while registering it as a society.
  2. Role of Industry Partner:

Though financial contribution by the Industry Partner is not a pre-condition to participate in the Scheme, however it is desirable if Industry Partner contributes financially in the up gradation of the ITI. The Industry Partner may contribute machinery, tools and equipment, etc. which may be instrumental in furthering the objectives of this Scheme. It also arranges to provide training to the faculty members and on the job training to the students of the ITI.

  1. Role of State Government:

The administrative control of the staff of the ITI remains with the State Government and it continues to pay their salaries and other emoluments. The State Government is required to ensure that the sanctioned strength of the instructors in the ITI is always filled up and in no case the vacancies exceed 10% of the sanctioned strength at any point of time. They are required to ensure that all additional positions required by the ITI are sanctioned and filled up on priority. It has to ensure provision of funds to meet office, administrative and other running expenses of the ITI. The State Government, as the owner of the ITI, continues to regulate admissions and fees except up to 20% of the

admissions which are determined by the IMC.

  1. Monitoring Agencies:
    • The Central Government has constituted a National Steering Committee (NSC) with adequate representation from industry, State Governments and other Central Government Departments to act as an Apex body for guiding implementation and monitoring of the Scheme. It has also set up a National Implementation Cell (NIC) at the Central level for management, monitoring and evaluation of the Scheme.
    • To monitor implementation of the Scheme at the State level, the State Government has set up a State Steering Committee (SSC) with adequate representation from the Industry. The SSC is assisted by a State Implementation Cell (SIC) with sufficient staff for management, monitoring and evaluation of the Scheme at State level.
  2. Institute Development Plan :

The interest free loan is released to the IMC is directly on the basis of an Institute Development Plan (IDP) prepared by it. The IDP is developed in such a way that it leads to up gradation of the ITI as a whole. Simultaneous up gradation in a particular trade sector may also be taken up. The IDP defines the long term goals of the Institute, the issues and challenges facing the Institute and the strategies for dealing with them. It sets targets for institutional improvement, define Key Performance Indicators and detail the financial requirement with year-wise break up to meet the needs. The IDP is submitted to the State Steering Committee (SSC), which scrutinizes it and forwards to the Central Government for release of funds.

  1. Conditions for use of Funds of IMC :

The interest free loan received by the IMC is kept in a separate bank account opened in the name of the IMC in a public sector bank. Any private contributions, special grants received from State Government and revenue generated by the IMC is also deposited in this bank account. The loan amount may be used for providing additional civil work in the ITI, which shall not exceed 40% of the total loan amount; for use as seed money, which shall not exceed 20% of the total loan amount; for procurement of machinery and

equipment and for other activities directly related to up gradation of training infrastructure in the ITI. Any deviation from this pattern of use of funds has to be justified by the IMC and prior approval obtained from the NSC.

The following procedure is followed for utilization of funds received bythem as interest free loan from the Central Govt. under the Scheme

  1. a. Administrative Approval : Except for some contingent expenses of upto Rs. 5000/- at a time, all expenditure made out of the funds of the IMC Society shall have the administrative approval of the Governing Council of the IMC Society.
  2. b. Financial powers of different authorities in IMC Society :

The following authorities in the IMC Society have financial power to incur expenditure of any nature (works, procurement of goods, services, consultancy etc.) up to the monetary limits mentioned below :

  • 1. ITI Principal/Secretary, IMC Society. - Up to Rs. 15,000
  • 2. Works and Procurement Committee of IMC Society.- Above Rs.15,000 and upto Rs.10 lakh

  • Governing Council of the IMC Society. - Above Rs. 10 lakh
  • Works and Procurement Committee of the IMC Society shall consist of :
  • Chairperson/Vice-Chairperson of IMC - Chairperson
  • Member Secretary of IMC - Member
  • Senior faculty member nominated in IMC - Member
  • One Industry member nominated in IMC - Member
    1. Repayment of Loan and Books of Accounts:
      • For the repayment of loan, there is a moratorium of ten years from the year in which the loan is released to the IMC. After the moratorium, the loan is payable by the IMC in equal annual installments over a period of twenty years, the first installment repayable from the 11th anniversary of the day of drawl. In case of default in payment of installment of the loan the NSC may impose penalty on such overdue payments or take any other action deemed fit.
      • The IMC maintains regular books of accounts, gets them audited and prepares annual reports and statements of accounts as required under the relevant Societies Registration Act. The Central Government may call for its books of accounts, vouchers, documents, etc. relating to any accounting year and also authorize an officer for their inspection.
    1. Key Performance Indicators:

      2. With the broad objective of improving the quality of training leading to better employability, all the three parties jointly agree and finalize Key Performance Indicators (KPIs) as yearly targets for next five years, for improving the internal as well external efficiency of the ITI against the base line information. These parameters are used to evaluate the success of the scheme during and after the project period. The agreed KPIs signed by the IMC and

      the State Government are appended to the MoA.

    1. Monitoring Mechanism:

    The IMC is required to submit quarterly reports about the implementation of the Scheme to the SSC, which will in turn submit a consolidated report to the NSC about all the ITIs covered under the Scheme. In case of unsatisfactory performance in achieving the KPIs, the IMC will submit a detailed report to the SSC within 30 days of receipt of a notice in this regard, inter alia, indicating the reasons for failure and measures required to be taken. The SSC will forward this report to the NSC with their comments. The NSC will fix responsibility for such failure and ensure that necessary corrective action is taken.