PPP Mode

Upgradation of 1396 Government ITIs through Public Private Partnership into “center of excellence”

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 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)

• Internal efficiency

  % of applications as compared to no. of seats.

  % of enrolments as compared to no. of seats.

  % of dropout as compared to no. of enrolments.

  % of students passed out compared to enrolled students.




• External efficiency

  % of passed out students employed/self employed within one year of pass out.

  Average monthly income of the employed/self employed students.

Govt. of India decided to upgrade 300 ITIs in the country in to Upgradation of 1396 Government ITIs through Public Private Partnership” into “Centre of Excellence” in the first batch of 300 ITIs covered during 2007-08. I.T.I. Balisana is selected into Upgradation of 1396 Government ITIs through Public Private Partnership” into “Centre of Excellence” . IMC have been decided following trades in to upgradation through this scheme and also planing to start new two trades and some short Term courses using this scheme.