District Industries Centre, Muzaffarnagar. Schemes/Programmes-

Transcription

1 District Industries Centre, Muzaffarnagar Head of office- Sh KPS Tyagi, General Manager District Industries Centre Address- District Industries Centre, Near Suzdu Chungj, Meerut Road,Muzaffarnagar Phone/Fax Head of the Dept.- Director Industries Address- Udyog Nideshalaya, GT Road, Kanpur Phone/Fax , dirindustries.up.nic.in Schemes/Programmes- 1. Prime Minister's Employment Generation Programme (PMEGP) 2. Vocational Training Programme (VTP) 3. Enterpreneur Memorandam (EM) 4. Single Table System (STS) & Udyog Bandhu

2 GUIDELINES ON PRIME MINISTER S EMPLOYMENT GENERATION PROGRAMME (PMEGP) 1. The Scheme PMEGP is be a central sector scheme administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Ministry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. 2. Objectives (i) To generate employment opportunities in rural as well as urban areas of the country through setting up of new self-employment ventures/projects/micro enterprises. (ii) To bring together widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place. (iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas. (iv) To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment. 3. Quantum and Nature of Financial Assistance Levels of funding under PMEGP Categories of beneficiaries under PMEGP Beneficiary s contribution (of project cost) Rate of Subsidy (of project cost) Area (location of project/unit) Urban Rural General Category 10% 15% 25% Special (including SC / ST / OBC /Minorities/Women, Ex-servicemen, Physically handicapped, NER, Hill and Border areas etc. 05% 25% 35% Note: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs. 25 lakh. (2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh. (3) The balance amount of the total project cost will be provided by Banks as term loan 4. Eligibility Conditions of Beneficiaries (i) Any individual, above 18 years of age (ii) There will be no income ceiling for assistance for setting up projects under PMEGP.

3 (iii) For setting up of project costing above Rs.10 lakh in the manufacturing sector and above Rs. 5 lakh in the business /service sector, the beneficiaries should possess at least VIII standard pass educational qualification. (iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP. (v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP. (vi) Institutions registered under Societies Registration Act,1860; (vii) Production Co-operative Societies, and (viii) Charitable Trusts. (ix) Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible. 4.1 Other eligibility conditions (i) A certified copy of the caste/community certificate or relevant document issued by the competent authority in the case of other special categories, is required to be produced by the beneficiary to the concerned branch of the Banks along with the Margin Money (subsidy) Claim. (ii) A certified copy of the bye-laws of the institutions is required to be appended to the Margin Money (subsidy) Claim, wherever necessary. (iii) Project cost will include Capital Expenditure and one cycle of Working Capital. Projects without Capital Expenditure are not eligible for financing under the Scheme. Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank s Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be. (iv) Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Work-shed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or rental workshed/workshop to be included in the project cost calculated for a maximum period of 3 years only. (v) PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible (Para 29 of the guidelines refers). Note: (1) The Institutions/Production Co-operative Societies/Trusts specifically registered as such and SC/ ST/ OBC/ Women/ Physically Handicapped / Ex-Servicemen and Minority Institutions with necessary provisions in the bye-laws to that effect are eligible for Margin Money (subsidy) for the special categories. However, for Institutions /Production Cooperative Societies/Trusts not registered as belonging to special categories, will be eligible for Margin Money (Subsidy) for general category. (2) Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The family includes self and spouse. 5. Implementing Agencies 5.1 The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), Mumbai, a statutory body created by the Khadi and Village Industries Commission Act, 1956, which will be the single nodal agency at the national level. At the State level, the scheme will be implemented through State Directorates of KVIC, State Khadi and Village

4 Industries Boards (KVIBs) and District Industries Centres(DIC's) in rural areas. In urban areas, the Scheme will be implemented by the State District Industries Centres (DICs) only. KVIC will coordinate with State KVIBs/State DICs and monitor performance in rural and urban areas. KVIC and DICs will also involve NSIC, Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj Institutions and other NGOs of repute in identification of beneficiaries under PMEGP. 6. Financial Institutions (i) 27 Public Sector Banks. (ii) All Regional Rural Banks. (iii) Co-operative Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries)/Commissioner (Industries) (iv) Private Sector Scheduled Commercial Banks approved by State Level Task Force Committee headed by Principal Secretary (Industries)/Commissioner (Industries). (v) Small Industries Development Bank of India (SIDBI). 7. Identification of beneficiaries: The identification of beneficiaries will be done at the district level by a Task Force consisting of representatives from KVIC/State KVIB and State DICs and Banks. The Task force would be headed by the District Magistrate / Deputy Commissioner / Collector concerned. The Bankers should be involved right from the beginning to ensure that bunching of applications is avoided. 8. Bank Finance 8.1 The Bank will sanction 90% of the project cost in case of General Category of beneficiary/institution and 95% in case of special category of the beneficiary/institution, and disburse full amount suitably for setting up of the project. 8.2 Bank will finance Capital Expenditure in the form of Term Loan and Working Capital in the form of cash credit. Project can also be financed by the Bank in the form of Composite Loan consisting of Capital Expenditure and Working Capital. The amount of Bank Credit will be ranging between 60-75% of the total project cost after deducting 15-35% of margin money (subsidy) and owner s contribution of 10% from beneficiaries belonging to general category and 5% from beneficiaries belonging to special categories. 8.3 Though Banks will claim Margin Money (subsidy) on the basis of projections of Capital Expenditure in the project report and sanction thereof, Margin Money (subsidy) on the actual availment of Capital Expenditure only will be retained and excess, if any, will be refunded to KVIC, immediately after the project is ready for commencement of production. 8.4 Working Capital component should be utilized in such a way that at one point of stage it touches 100% limit of Cash Credit within three years of lock in period of Margin Money and not less than 75% utilization of the sanctioned limit. If it does not touch aforesaid limit, proportionate amount of the Margin Money (subsidy) is to be recovered by the Bank/Financial Institution and refunded to the KVIC at the end of the third year.

5 8.5 Rate of interest and repayment schedule Normal rate of interest shall be charged. Repayment schedule may range between 3 to 7 years after an initial moratorium as may be prescribed by the concerned bank/financial institution. It has been observed that banks have been routinely insisting on credit guarantee coverage irrespective of the merits of the proposal. This approach needs to be discouraged. RBI will issue necessary guidelines to the Banks to accord priority in sanctioning projects under PMEGP. RBI will also issue suitable guidelines as to which RRBs and other banks will be excluded from implementing the Scheme. The Task Force will scrutinize the applications and based on the experience, technical qualification, skill, viability of the project etc., the task force will shortlist the applications and call for an interview of the applicants separately for rural and urban areas to assess their knowledge about the proposed project, aptitude, interest, skill and entrepreneurship abilities, market available, sincerity to repay and make the proposed project success. It is essential that the applications cleared by the District Task Force also fulfill these requirements at that stage itself so as to avoid delays in approval of loans in Banks. Once the project is sanctioned and before the first installment of the Bank Finance is released to the beneficiary, Bank will inform the State/Regional Office of the KVIC/KVIBs/State DICs, as the case may be, for arranging EDP training (Para 12(i) of the guidelines refers) to the beneficiary, if he/she has not already undergone such training. If he/she has already undergone such training of at least 2 weeks duration, either with the training centre of KVIC/KVIB /State DICs or the institutions recognized by or under the administrative control of Ministry of MSME or at any other training centre of repute, such beneficiary need not undergo further EDP training. First installment of the loan will be released to the beneficiary only after completion of EDP training of at least 2 weeks (Para 12 of the guidelines refers) specially designed for the purpose, which will be organized by KVIC / KVIBs / DICs or the institutions recognized by or under the administrative control of Ministry of MSME or at any other training centre of repute. Those who have already undergone training from the recognized institutions need not undergo further EDP training. After the successful completion of EDP training arranged by the KVIC/KVIBs/State DICs, the beneficiary will deposit with the bank, the owner s contribution. Thereafter, the bank will release first installment of the Bank Finance to the beneficiary. Projects sanctioned will be declared ineligible for Margin Money (subsidy) assistance if the EDP training is not completed. After the release of Bank finance either partly or fully, Bank will submit Margin Money (subsidy) claim in the prescribed format to the designated Nodal Branch of the State/Region where KVIC has placed lump sum deposit of Margin Money (subsidy) in advance in the Savings Bank Account in the name of KVIC, for release of Margin Money (subsidy). In the case of projects financed by the branches of the Regional Rural Banks, the financing branches of the RRBs will have to submit the Margin Money (subsidy) Claim to their Head Office, which, in turn, will submit the consolidated claims to the designated Nodal Branch of their sponsoring Bank. In the case of projects

6 financed by SIDBI, the guidelines issued by SIDBI for release of loan/margin money (subsidy) will be followed. Once the Margin Money (subsidy) is released in favour of the loanee, it should be kept in the Term Deposit Receipt of three years at branch level in the name of the beneficiary/institution. No interest will be paid on the TDR and no interest will be charged on loan to the corresponding amount of TDR. Since Margin Money (subsidy) is to be provided in the form of subsidy (Grant), it will be credited to the Borrowers loan account after three years from the date of first disbursement to the borrower/institution, by the Bank. In case the Bank s advance goes bad before the three year period, due to reasons, beyond the control of the beneficiary, the Margin Money (subsidy) will be adjusted by the Bank to liquidate the loan liability of the borrower either in part or full. In case any recovery is effected subsequently by the Bank from any source whatsoever, such recovery will be utilized by the Bank for liquidating their outstanding dues first. Any surplus will be remitted to KVIC. Margin Money (subsidy) will be one time assistance, from Government. For any enhancement of credit limit or for expansion/modernization of the project, margin money (subsidy) assistance is not available. Margin Money (subsidy) assistance is available only for new projects sanctioned specifically under the PMEGP. Existing units are not eligible under the Scheme. Projects financed jointly i.e. financed from two different sources (Banks / Financial institutions), are not eligible for Margin Money (subsidy) assistance. Bank has to obtain an undertaking from the beneficiary before the release of Bank Finance that, in the event of objection (recorded and communicated in writing) by KVIC /KVIB/State DIC, the beneficiary will refund the Margin Money (subsidy) kept in the TDR or released to him after three years period. Banks / KVIC / KVIBs / DICs have to ensure that each beneficiary prominently displays the following sign-board at the main entrance of his project site:-..(unit Name) Financed By (Bank), District Name Under Prime Minister s Employment Generation Programme (PMEGP) Ministry of Micro, Small and Medium Enterprises Negative List of Activities The following list of activities will not be permitted under PMEGP for setting up of micro enterprises/ projects /units. a) Any industry/business connected with Meat(slaughtered),i.e. processing, canning and/or serving items made of it as food, production/manufacturing or sale of intoxicant

7 items like Beedi/Pan/ Cigar/Cigarette etc., any Hotel or Dhaba or sales outlet serving liquor, preparation/producing tobacco as raw materials, tapping of toddy for sale. b) Any industry/business connected with cultivation of crops/ plantation like Tea, Coffee, Rubber etc. sericulture (Cocoon rearing), Horticulture, Floriculture, Animal Husbandry like Pisciculture, Piggery, Poultry, Harvester machines etc. c) Manufacturing of Polythene carry bags of less than 20 microns thickness and manufacture of carry bags or containers made of recycled plastic for storing, carrying, dispensing or packaging of food stuff and any other item which causes environmental problems. d) Industries such as processing of Pashmina Wool and such other products like hand spinning and hand weaving, taking advantage of Khadi Programme under the purview of Certification Rules and availing sales rebate. e) Rural Transport (Except Auto Rickshaw in Andaman & Nicobar Islands, House Boat, Shikara & Tourist Boats in J&K and Cycle Rickshaw). VOCATIONAL TRAINING PROGRAMME (VTP) Guidelines for Selection of Vocational Training Providers under Skill Development Initiative Scheme 1. Background In pursuance of Hon ble Union Finance Minister s announcement in Budget Speech, Ministry of Labour and Employment undertook development of a new strategic framework for skill development for the school drop-outs and existing workers especially in the informal sector in close consultation with industry, micro enterprises in the informal sector, State Governments, experts and academia. This was essential considering their educational, social and economic background. The key features of the new framework for skill development are: Demand driven short term training courses based on Modular Employable Skills (MES) decided in consultation with Industry. Flexible delivery mechanism (part time, weekends, full time, onsite/ offsite) Different levels of programmes (Foundation level as well as skill upgradation) to meet demands of various target groups. Training to be provided by Vocational Training Providers under the government, private sector and industrial establishments Optimum utilization of existing infrastructure to make training cost effective The services of existing or retired faculty or guest faculty to be utilized Testing of skills of trainees by an independent assessing body that would not be involved in conduct of the training programme to ensure that it is done impartially Page 4 of 31 Accordingly, with the inclusion of above features, a new scheme namely Skill Development Initiative for imparting vocational training / testing of competencies of 1 million persons over a period of 5 years and thereafter 1 million per year with an outlay of Rs Crores has been taken up. The scheme has been operationalised after the approval of CCEA on 24th May 2007.

8 The training under SDI scheme was envisaged to be provided by various Vocational Training Providers (VTPs) under Central Government, State Governments, Public and Private Sector and Industrial establishments. It was decided that initially 1896 Govt. ITIs and 3218 private ITCs affiliated to the National Council for Vocational Training (NCVT) will be eligible to participate in the scheme as VTPs. Once the scheme takes off, the mechanism will be evolved for empanelment of other private VTPs by the Apex committee. Considering the response to the scheme, it is imperative to expand the ambit of Vocational Training Providers. Criteria and procedure for registration of various organizations as VTPs under SDI scheme is given below. 2. Eligible Vocational Training Providers The applicants fulfilling the following conditions are eligible to apply: 2.1. Educational / Training Institutes: Any educational/ training institute fulfilling any of the following criteria: ITIs / ITCs affiliated to NCVT on or before the date of submission of the application Institutes approved by Councils under Central Government Ministries like All India Council of Technical Education / Medical Council of India / Indian Nursing Council / National Page 5 of 31 Council for Hotel Management and Catering Technology / Any other on or before the date of submission of the application Colleges / Institutes affiliated to a university set up by a Central or State / UT government or recognized by University Grants Commission Schools / Institutes approved by Central or State Boards of Secondary Education (or equivalent) or Boards of Technical Education Distance Education Institutions (DEIs) that are approved by Distance Education Council (DEC) of India on or before the date of submission of application Institutes approved by International Air Transport Association (IATA) and International Civil Aviation Organisation (ICAO). In future, if the registration/affiliation of the institute is cancelled for any reason by the respective accrediting/registering/governing authority, then its registration as VTP under SDIS would also stand cancelled. VTP will not be allowed to run any new MES courses/batches from the date of cancellation. It will, however, have to complete the training of the on-going courses Organizations/ Institutes set up by Government: Organizations / Institutes (including autonomous organizations) set up by Central Government / State Governments / UT Administrations Companies/Firms: Company/Firm fulfilling any of the following criteria: An organization providing training under Apprentices Act, 1961 for last one year from the date of submission of the application An organization registered in India, having been in existence in three years, employing at least 100 full time employees at the time of submission of application. It should have a valid Permanent Income Tax Account Number (PAN) or Service Tax Registration Number (TAN) and audited accounts of statements

9 for the last three years Chambers of Commerce and Industry / Associations of Industries or Trade having at least 100 members at the time of submission of application. However, these cannot become Assessing Body under the SDIS Companies/Firms /Registered Societies/Trusts engaged in providing training: Companies/Firms/Registered Societies/Trusts fulfilling any of the following criteria: Registered Company /Firm/ Trust/ Society conducting vocational education / training / job oriented / self employment/ entrepreneurship development training courses having essentially trained 1000 persons in the last three years under a Central Government Scheme. It should have been in existence for at least three years holding a valid Permanent Income Tax Account Number or Service Tax Registration Number. It must have audited accounts of statements for last three years and should not have been black-listed by any Government entity in India. It should submit a letter of satisfactory performance from concerned central government ministry under whose scheme it has trained more than 1000 persons Hospitals/ Nursing homes registered with appropriate local authority and having at least 50 beds and training infrastructure. 3. Registration Procedure 3.1. Advertisement: The respective State Government / UT Administration will give advertisement to invite applications for registration of VTPs to run MES courses under the SDI Scheme. DGE&T and RDATs may also give advertisements Application: Duly filled in and signed application in the prescribed form (Section 8) (two copies) along with prescribed application fee and the necessary supporting documents shall be submitted to the concerned State Government either in person or through speed post/registered post. One copy of the above should be submitted to the concerned RDAT also, either in person or through speed post/registered post The application should spell out, among other things, the following: i. Documentary proofs of eligibility to apply as VTP in accordance with relevant provisions under para 2.0. ii. Goals and objectives of the organization. iii. Details of its promoters including their background. iv. Background of the organization with reference to its experience in promoting, managing and operating skill development programmes. Its activities in the training domain related to the sectors / trades in which it proposes to impart the training since its inception and its growth plan. v. Details of tie-up with industry for imparting training to staff and students, etc. vi. Training Infrastructure and amenities (equipment, space, power, instructional staff, etc.) available at its centres and methodology of training. Page 8 of 31 vii. Detailed plan of the organization for conducting training

10 including sectors/ trades, onsite/ offsite, mobilization of resources (financial, instructional, administrative and physicalequipment, raw-material, space, etc.), on-the-job training, organizing post training support for employment of students, etc. viii. Policy and practices with regards to Trainers recruitment, retention and development. ix. Policy and practices for selection of trainees and vocational guidance and counseling. x. Policies and practices for on-the-job training and production cum training. xi. Industry tie-ups for post-training support in the form of providing employment (wage employment/ self employment / any other). The above, shall form the basis for evaluation of the application and shall serve as the blue print for proper evaluation of the applicant and further development Application for registration as VTPs should be submitted by: a. The Director or authorized person of the Institute/ Company/Firm. The power of attorney to be submitted for authorized signatory. b. Officer designated by the Government in case of Central/State Government organizations. c. The Chairman or Secretary of Society/Trust The applications can be submitted any time round the year to the respective State Director Organizations having more than one training centre in a particular state can submit a combined application for all the training centres in a particular state. However, application forms are required to be filled up for each centre accompanied by separate application fee Application Fee: The Application forms can be collected from respective State Cells / UT Cells / RDATs or downloaded from the DGE&T website: The applicant must submit a Non-Refundable application fee in the form of a Demand Draft for Rs. Two Thousand Only (Rs ) drawn on a nationalized bank in favour of << To be provided by State Government >>, failing which, the application will not be considered for evaluation Government Organisations / Institutes are exempted from submission of Application Fee. The application fee collected is to be utilized for the promotion and implementation of the Scheme. This amount cannot be used for any work other than related to SDI Scheme and cannot be transferred in any other account Evaluation of Application: A VTP Evaluation Committee (VEC) at the State level will be formed for evaluation of the applications. This committee will be constituted by the State Government. It will have three (3) members State Director, Representative from the RDAT and an Independent Expert of repute in vocational training field. The Independent Expert should preferably be from the leading industry association of the State and finalized in consultation with the concerned RDAT.

11 The applications and related documents shall be duly scrutinized by the State VEC or their authorized representatives. The deficiencies if any, in the application shall be communicated to the applicant. The applicant shall furnish all such information/ documents / proofs sought for the purpose of evaluation State VEC will then call the applicants for a presentation / discussion. The State VEC will meet at least once in three months and evaluate the received applications State Government will inform the applicant & RDAT, the decision of the VEC about the approval/ rejection of the application. The RDAT will register the VTP and issue registration letter The applicants shall bear all costs for making the presentation or submission of information / documents as desired by State VEC In case of those applicants who have submitted the combined application as mentioned in Section 3.2.3, presentation / discussion can be done at one time only for the approval of all the centres The applicant whose application is rejected by State VEC on due evaluation will not be eligible to apply for registration as VTP for a period of six (6) months from the date of rejection. If on re-applying, the application is rejected again, the applicant will not be eligible to apply again for a period of one year from date of second rejection Parameters of evaluation: The evaluation of an organization/ institute for becoming VTP under SDI scheme shall be done by VEC based on criteria specified under 3.6. Issue of Registration Letter: Based on the evaluation of the application, eligible applicants shall be registered as VTPs under SDI Scheme. They shall be issued a registration letter by respective RDATs The registration of the VTPs will be valid till and shall be reviewed every two year by State Government/ DGE&T based on the performance of the VTP under the scheme The selected VTP shall submit a Performance Guarantee in the form of a Bank Guarantee for Rupees Two Lakh only (Rs. 2,00,000.00) for performing all the obligations arising on acceptance of all the terms and conditions of registration as Vocational Training Provider to the respective RDAT failing which the registration letter will not be issued. The format for the Bank Guarantee enclosed in Section 10 shall be provided by the concerned RDAT to the selected VTPs. The Bank Guarantee shall be valid for the period of registration, i.e., till DGE&T will have the absolute right to encash Bank Guarantee, if sufficiently convinced of negligence and lack of dedication to work on the part of the VTP Government Organisations / Institutes are exempted from submission of Application Fee and Bank Guarantee Autonomous Bodies under Government and private ITCs affiliated to the NCVT are exempted from submission of Bank Guarantee Suspension / Cancellation of Registration: DGE&T, RDAT, concerned State/ UT Government department

12 or any agency authorized by them may carry out random visits round the year any time for verifying the status of the institution and to ensure maintenance of norms and standards DGE&T, RDAT, concerned State/ UT Government department or any agency authorized by it may also conduct from time to time inspections with or without notifying such dates in such cases where specific complaints of misrepresentation, violation of norms and standards, malpractices etc. are received to verify the facts. Upon inspection, such complaints if found correct may decide to Cancel / suspend the registration of VTP and/or forfeit the Bank Guarantee submitted by it Depending on a particular case, VTP may be allowed to create the facilities/ remove the deficiencies/ comply with stipulated conditions/ fulfillment of prescribed requirement as per timelines prescribed by State VEC or RDAT In case, it is found at a later stage that any of the documents submitted by the applicant are falsified, the registration of the VTP will be cancelled and VTP will be black-listed, the Bank Guarantee will be forfeited and it will not be allowed to register as VTP for the SDIS Scheme, in future The proposal for cancellation of registration of a VTP will be considered by State VEC and based on its recommendation, State Government/ RDAT will issue the cancellation order A show cause notice shall be issued to the VTP giving him 15 days time to explain why his registration should not be cancelled for << give the reason>>. 4. Other Conditions 4.1. The selected VTPs shall submit an undertaking that it shall provide necessary training infrastructure required to run the MES course under SDI Scheme. If at any stage it is found that VTP is running the courses without necessary training infrastructure, its registration may be cancelled / suspended and the bank guarantee shall be forfeited DGE&T is in the process of developing web-based software for effective implementation of the SDIS. The VTP shall fully comply with instructions issued by DGE&T from time to time in this regard and for usage of the system. It shall provide necessary IT infrastructure and manpower for the same The VTPs would be eligible to run only those MES courses for which it has been registered The VTP shall submit the schedule of courses it intends to run / discontinue every six months to the concerned State Government. VTP cannot discontinue any course(s) without written approval of the State Government The VTP can run off-campus courses only within the district in which the training centre has been registered. 5. Evaluation of a VTP 5.1. Separation of training delivery and assessment functions are aimed at ensuring quality. Performance of the VTPs would be closely monitored based on the output and outcome of training provided by them. Rating would be awarded to the VTPs from 2nd year onwards based on following criteria: Grading Pass rate of trainees who appeared in tests during a period of 6 months (April September, October- March)

13 Employment rate of passed out trainees A 80% and above 80% and above B 60%- 80% 60%- 80% C Less than 60% Less than 60% 5.2. List of VTPs along with ratings would be provided on the SDI/ MES website. Registration of the VTP would be cancelled if it gets C grade, in two consecutive times. The VTP would be able to apply for a fresh registration not before one year from the date of cancellation of the registration. From 3rd year onwards, employment rate of trainees would also be considered in the rating. 6. Definition DGE&T would mean DGE&T/ Any of its offices or officers/ any other agency appointed by DGE&T for performing a specified function. 7. Power to modify The Apex committee has the power to modify any of the provisions of these Regulations in respect of any class or category of institutions. 8. Application Form for Registration of VTP APPLICATION FORM Instructions to fill the form: 1. Applicants are advised to read carefully the details of this Scheme and any advertisement notice issued by the DGE&T,/ RDAT/ State Director for Vocational Education before applying as vocational Training Provider 2. This Form would be filled in by the Organization applying for Vocational Training Provider under SDIS 3. Provide two (2) copies of the application along with the application fee in the form of Demand Draft to the State Director 4. Provide one (1) copy of the application to the respective RDAT 5. Provide the Power of Attorney of Authorized Signatory 6. Organizations having more than one training centre in a particular state can submit a combined application for all the training centres in a particular state. Application forms are required to be filled up for each centre accompanied by separate application fee. 7. The application form, Undertaking and any other supporting documents should be signed by the Director or authorized personnel of the Institute/ Company/Firm or Officer designated by the Government (In case of Central/State Government organizations) or Chairman or Secretary of Society/Trust. 8. Copies of qualification documents as prescribed are acceptable, but must be completely legible and certified true copies, preferably by a Gazetted Officer. Copies will be retained for record purposes. All original qualification documents (and only original documents) will be returned by registered post. 9. The committee reserves the right to request original documents for verification. If falsified documents are submitted by applicant, the application will be summarily rejected and the applicant will not be eligible to apply again for registration as VTP.

14 Application Letter From, Date: Sir, Subject: Application for Registration as Vocational Training Provider under the Skill Development Initiative Scheme We, the undersigned, hereby apply for Registration as Vocational Training Provider under the Skill Development Initiative Scheme. We would like to state that the information provided by us is true to the best of our knowledge and belief and we understand that we are liable for action under the law for any false information or document produced by us. We also understand that DGE&T/ RDAT or Any other representative of DGE&T shall be free to investigate on its own into the correctness of information furnished by us in this application and/or call for any further information in this regard from us. During such investigation or at any subsequent stage, DGE&T may refuse to issue the letter of registration or if already issued may cancel the same and we shall stand debarred for applying as Vocational Training Provider / Assessing Body under the SDIS. Signature of Authorised Person Name & Designation: Phone No.: 1. Contact Details Name of the Organization Name of the Head of the Organization Contact Details Address: City: District: State: Pin Code: Telephone: Mobile: Fax: Website: Name of the Centre for which registration as VTP is sought Contact Details Address: City: District: State: Pin Code: Telephone: Mobile: Fax: Website: 2. Preliminary Data a. Whether applying for Registration for the First Time Second Time Third Time

15 b. If re-applying, please specify the last date / s of application and reasons of not being selected c. Date of Registration / Incorporation 3. Educational / Training Institutes and Organizations/ Institutes set up by Government S No. Type of Institute Whether institute affiliated/ accredited to any of the institution mentioned below? Yes / No Details and Documentary Proof a. ITIs / ITCs / Colleges / Schools / Distance Education Institute / Organizations / Autonomous Organizations NCVT / AICTE / MCI / INC / NCHMCT / Any other? In case, the Accreditation Body is a Council, then it should be set up under the Central Government Ministry Central/ State / UT Government University University recognized by UGC Central/ State Board of Secondary Education Board of Technical Education Distance Education Council of India University recognized by DEC of India Institutes approved by International Air Transport Association (IATA) or International Civil Aviation Organisation (ICAO) Set up by Central/ State/UT government In case of autonomous organizations Any other (Please specify) The documentary proof in the above would be Certificates of Registration / accreditation clearly highlighting the date of Registration and the Accrediting Body 4. For Companies/ Firms/Registered Societies/ Trusts S No. Type of Institute Documents / Information to be furnished

16 Details and Documentary Proof a. Providing training under Apprentices Act, 1961 Date of Registration for providing training under Apprentices Act 1961 Attach Certificate of Registration Letter from Competent Authorities for satisfactory work performance OR b. Registered Organization in India Certificate of Incorporation Number of full time employees at the time of submission of application Permanent Income Tax Account Number (PAN) Service Tax Registration Number Audited accounts of statements for the last three years OR c. Hospitals/ Nursing homes Certificate of Registration with appropriate local authority Date of Registration No. of beds Details of Training Infrastructure Service Tax Registration Number OR d. Chambers of Commerce and Industry / Associations of Industries or Trade Number of members at the time of submission of application OR e. Others engaged in providing Training Date and Certificate of being Registered as Company /Firm/ Trust/ Society conducting vocational education / training / job oriented / self employment/ entrepreneurship development training courses Name of the Management / Trust Letter from Competent Authorities for satisfactory work performance Whether trained 1000 persons in the last three years under a Central Government Scheme? Permanent Income Tax Account Number (PAN) Service Tax Registration Number Audited accounts of statements for the last three years Self Attested Undertaking that it is not black-listed by any Government entity

17 in India 5. Financial Performance Summary For Last Three Years (To be filled in by those organizations which are maintaining the audited accounts of statements) In Indian Rupees FY 1 FY - 2 FY 3 Turnover Profit after Tax Net Worth 6. Technical Proposal for Vocational Training under SDI Scheme Background of the organization with reference to its experience in promoting, managing and operating training mandates; its legal standing with respect to its registration; details of its promoters including their background Training domain activities related to the sectors / trades in which it proposes to impart the training since its inception and its growth plan Methodology of Training, Training Infrastructure and amenities available at its centres Policy with regards to Trainers recruitment, retention and development Industry tie-ups for imparting training & Industry tie-ups for post-training support in the form of generating employment (wage employment/ self employment / any other) Any other relevant information Please attach a write-up covering all the above mentioned points. The Information provided herein should be adequately supported by relevant documents. 7. Details of application fee Demand Draft Number Date Payable at Bank Amount 8. Bank Details for the purpose of payment of release of funds from RDAT to VTP Account Details to be submitted after selection DD to be drawn in favour of Payable at Bank account details 9. Details of the MES Sectors/Courses for which VTP proposes to conduct training Name of the Sector MES Course Code Name of the Courses For Official Use (To be filled in by the State Directorate) To be filled by the authorized officer of the State Directorate dealing with the Craftsmen Training Scheme The information furnished by the applicant is found to be correct as per the record available to the Directorate. Any other comments : Signature of Authorised Person Name & Designation: Phone No.: For Official Use (To be filled in by the RDAT) Registration No: Permission granted for running the following MES Courses Name of the Sector MES Course Code Name of the Courses Any other comments : Signature of Authorised Person

18 Name & Designation: Phone No.: Supporting Documents Please submit the following supporting documents (whichever applicable) along with the application form: 1. Copy of the Certificate of Registration from the relevant Accreditation Body 2. Copy of Registration of Society/Trust along with details of constitution, memorandum of association of the Society/Trust. 3. Certification of Incorporation of the Company 4. Copy of the letter from Competent Authority for satisfactory work performance 5. Details of latest fund position along with relevant Bank account available with the applicant for this proposal. 6. Supporting documents for Technical Proposal 7. Application fee 8. Audited Statements 9. Format for Undertaking UNDERTAKING (Note: This Undertaking is to be provided by the VTP after selection. This will require stamp duty as applicable in the State, where it is executed and shall be signed by the official whose signature and authority shall be verified. It is to be submitted after registration) I/We, (name of the Trustee/ Chairman/ Principal/ Director/ Authorised Person) of (name of the College/ Institution/ Trust/ Society/ Company/ Firm etc.) hereby undertake to comply with the following in connection with my/our application for registration as VTP under Skill Development Initiative Scheme. 1. The VTP shall provide funds /investment in development of related infrastructural, instructional and other facility for providing MES training courses as per DGE&T s norms and standards laid down from time to time and for meeting recurring expenditure. 2. VTP shall allow authorized officers of RDAT/DGE&T/Respective State Government dealing with CTS to inspect the training infrastructure available in its premises for courses/modules under SDI scheme. 3. The VTP shall at its cost make necessary arrangements for providing information to persons desirous of undertaking training regarding the institution and courses/programmes being conducted and details of infrastructural facilities including faculty etc. before commencement of the training courses. The information shall be revised every year with updated information about all aspects of the institution. 4. Admissions to courses shall be made in accordance with the regulations notified by DGE&T from time to time. 5. The VTP shall not cause or allow either closure of the Institution or discontinuation of the course(s) or start any new course (s) or alter intake capacity of seats without the prior approval of the DGE&T. 6. VTP shall implement Central government /State Government s reservation policy applicable for ITIs, as the case may be. 7. VTP shall maintain a separate bank account (To be submitted to RDAT after selection) and reimburse training cost, as instructed by DGE&T and received from respective Regional Directorate of Apprenticeship Training to its candidate(s) who has/have cleared test conducted by the Assessing Bodies. The accounts related to SDI Scheme shall be open for inspection by DGE&T or any body or person authorized by it. 8. VTP shall submit reports and utilization certificate as per schedule prescribed by DGE&T.

19 9. The training and any other fees shall be charged as prescribed by DGE&T. No additional fee shall be charged from the students/guardians of students in any form. 10. The VTP, by virtue of the approval given by DGE&T shall not automatically become claimant to any grant-in-aid from the Central or State Government for the Institute or for recurring expenditure etc. 11. It shall be mandatory for the VTPs to use the web-based system being developed by DGE&T for the purpose of implementation and monitoring of the scheme as and when the system is implemented. The VTP must provide at its cost all such infrastructure and manpower to operate the system as per instructions issued by DGE&T from time to time in this regard. 12. If a VTP fails to disclose the information or suppress and/or misrepresent the information, appropriate action could be initiated including suspension/ cancellation of registration and forfeiture of Bank Guarantee. 13. VTP shall provide post training support to trainees in getting employment, maintain data base on trainees trained and the outcome of the training. 14. VTP shall not make RDAT / DGE&T / State Governments a party in any disputes arising in its premises. 15. VTP shall abide by all the instructions prescribed in the Implementation Manual and those issued by DGE&T from time to time. 16. VTP shall strictly follow further conditions as may be specified by DGE&T from time to time. In addition to above, we confirm that we shall provide training infrastructure as per norms prescribed in the course(s)/module(s) approved by NCVT. We have read terms and conditions and shall abide by the same. In case of violation of any terms or if infrastructure / quality of training is not satisfactory, the registration would be cancelled by DGE&T. In case of any dispute, the decision of DGE&T shall be final and acceptable to us. Signature of the Authorized Representative Name: Seal of the Institution: Date: 10. Format for Bank Guarantee FORMAT OF BANK GUARANTEE TO BE PROVIDED BY THE VOCATIONAL TRAINING PROVIDER (Note: This guarantee is to be provided by the VTP after selection. This will require stamp duty as applicable in the State, where it is executed and shall be signed by the official whose signature and authority shall be verified) To, Dear Sir, Subject: Performance Guarantee for Registration as Vocational Training Provider under the Skill Development Initiative Scheme (SDIS) Bank Guarantee No.: Date: Name of the VTP: WHEREAS 1. Directorate General of Employment and Training (hereinafter referred to as DGE&T), Ministry of Labour has launched a new Scheme called Skill Development Initiative Scheme (hereinafter referred to as SDIS). The Training under the SDIS would be provided by various Vocational Training Providers selected through the Selection and Registration Procedure described in the Operational Manual of SDIS published by DGE&T from time to time and

20 revised by the Apex committee set up for this Scheme. 2. The VTP has to provide a Performance Guarantee in the form of a Bank Guarantee for Rupees Two Lakhs only valid upto the Period of Registration which is till 31st March NOW THIS GUARANTEE WITNESSETH 1. In consideration of DGE&T having agreed to register <<Name of the VTP>>, <<VTP Registration No.>> (hereinafter referred to as VTP) as the Vocational Training Provider under the Skill Development Initiative Scheme (SDIS) of Ministry of Labour, Government of India under the terms and conditions which are given in the SDIS Operational Manual published by DGE&T from time to time and revised by the Apex committee set up for this Scheme, we <<Name of the Bank>>, having our registered branch at <<Address of the Bank>> do hereby undertake to the DGE&T, their Successors, Assigns that in the event of DGE&T coming to the conclusion that the VTP has not performed their obligations under the said conditions of the SDIS, or have committed a breach thereof, which conclusion shall be binding on us as well as the said VTP, we shall on demand by the DGE&T, pay without demur to DGE&T, a sum of Rs. 200,000/- (Rupees Two Lakhs Only) or any lower amount that may be demanded by DGE&T. Our guarantee shall be treated as equivalent to the Performance Guarantee for the due performance of the obligations of the VTP under the said Scheme, provided, however, that our liability against such sum shall not exceed the sum of Rs. 200,000/- (Rupees Two Lakhs Only). 2. We also agree to undertake to and confirm that the sum not exceeding Rs. 200,000/- (Rupees Two Lakhs Only) as aforesaid shall be paid by us without any demur or protest, merely on demand from DGE&T on receipt of a notice in writing stating the amount is due to them and we shall not ask for any further proof or evidence and the notice from the DGE&T shall be conclusive and binding on us and shall not be questioned by us in any respect or manner whatsoever. We undertake to pay the amount claimed by DGE&T within a period of one week from the date of receipt of the notice as aforesaid. 3. We, <<Name of the Bank>>, further agree that the guarantee herein contained shall remain in full force and effect during the period that would be taken for the performance of the said work as the VTP and that it shall continue to be enforceable till all the dues of DGE&T, under, or by virtue of the said work have been fully paid and it's claims satisfied or discharged or till DGE&T certifies that the terms and conditions of the said work order have been fully and properly carried out by the said VTP and accordingly discharge the guarantee unless a demand or claim under this guarantee made on us in writing on or before 31st March 2012 we shall be discharged from all liability under this guarantee thereafter. 4. We confirm that our obligation to DGE&T under this guarantee shall be independent of the agreement or agreements or other understandings between DGE&T and the VTP. 5. Our liability under this will terminate unless these are renewed as provided hereinabove on the 31st March 2012 or on the day when our said constituents comply with their obligations, as to which a certificate in writing by DGE&T alone is the conclusive proof whichever date is later. Unless a claim or suit or action is filed against us within six months from that date or any extended period, all the rights of DGE&T against us under this guarantee shall be forfeited and we shall be released and discharged from all our obligations and liabilities hereunder. 6. The Bank agrees that the amount hereby guaranteed shall be due and payable to DGE&T on serving us with a notice before expiry of Bank Guarantee requiring the payment of the amount and such notice shall be deemed to have been served on the Bank either by actual delivery thereof to the Bank or by