Guidelines Of Scheme For Assistance To Training Institutions

Description
Detailed outline clarify guidelines of scheme for assistance to training institutions.

GUIDELINES OF “SCHEME FOR ASSISTANCE TO TRAINING INSTITUTIONS”
1. BACKGROUND

1.1. The Micro, Small and Medium Enterprises (MSMEs) sector has emerged as a highly
vibrant and dynamic sector of the Indian economy over the last five decades.
MSMEs not only play crucial role in providing large employment opportunities at
comparatively lower capital cost than large industries but also help in
industrialization of rural & backward areas, thereby, reducing regional imbalances,
assuring more equitable distribution of national income and wealth. MSMEs are
complementary to large industries as ancillary units and contribute enormously to the
socio-economic development of the country.
1.2. The Ministry of Micro, Small and Medium Enterprises (MoMSME) promotes the
development of micro and small enterprises in the country with the objective of
creating self-employment opportunities and upgrading the relevant skills of existing
and potential entrepreneurs. In order to promote establishment of new enterprises
and creation of new entrepreneurs MoMSME has been implementing various
schemes and programmes.
1.3. Entrepreneurship development is one of the key elements for promotion of micro and
small enterprises, particularly, the first generation entrepreneurs. Entrepreneurship,
and resultant creation of employment and wealth, is a major means for inclusive
development. Hence, entrepreneurship development has been one of the priorities in
countries the world over.
1.4. In order to ensure that young entrepreneurs are encouraged and suitably equipped to
go into new ventures, the Government has been providing assistance for
establishment of Training Institutions/ Entrepreneurship Development Institutes
(EDIs) for imparting entrepreneurship and skill development training. These EDIs
have been providing entrepreneurship and skill development training to the first
generation entrepreneurs and helping and supporting them in the establishment of
their enterprises. Government makes consistent and concerted efforts to accelerate
and promote entrepreneurship by providing support for strengthening of training
infrastructure as well as programme support.
1.5. MoMSME has set up three National level Entrepreneurship Development Institutes
namely National Institute for Micro, Small and Medium Enterprises (NIMSME),
Hyderabad; National Institute for Entrepreneurship and Small Business Development
(NIESBUD), Noida and Indian Institute of Entrepreneurship (IIE), Guwahati to
undertake the task of entrepreneurship and skill development on a regular basis.
1.6. MoMSME has also been supporting the efforts of State Governments/ Union
Territories, Industry Associations, Financial Institutions, Technical/ Management
Institutions, other Non-Governmental Organisations (NGOs), etc. for establishment
of new training institutions as well as strengthening of the infrastructure of existing
training institutions.

2. SCHEME FOR ASSISTANCE TO TRAINING INSTITUTIONS

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The Scheme envisages financial assistance for establishment of new institutions
(EDIs), strengthening the infrastructure of the existing EDIs and for supporting
entrepreneurship and skill development activities. The main objectives of the scheme are
development of indigenous entrepreneurship from all walks of life for developing new micro
and small enterprises, enlarging the entrepreneurial base and encouraging self-employment in
rural as well as urban areas, by providing training to first generation entrepreneurs and
assisting them in setting up of enterprises. The assistance shall be provided to these training
institutions in the form of capital grant for creation/strengthening of infrastructure and
programme support for conducting entrepreneurship development and skill development
programmes.

3. ASSISTANCE UNDER THE SCHEME

3.1 Assistance to National level EDIs

3.1.1 Eligibility

(i) Assistance may be provided under the scheme for creation or
strengthening/expansion of infrastructure, including opening of new branches/
centres and meeting revenue deficit, if any, to national level EDIs [presently 3
namely - National Institute for Micro, Small and Medium Enterprises (NiMSME),
Hyderabad; National Institute for Entrepreneurship and Small Business
Development (NIESBUD), Noida and Indian Institute of Entrepreneurship (IIE),
Guwahati].

3.1.2 Scale of assistance

(i) Amount of assistance will not exceed the actual amount required for creation or
strengthening/expansion of the infrastructure and meting the revenue deficit etc.
of the national level EDIs.

3.2 Assistance to Other EDIs (other than National level EDIs)

3.2.1 Eligibility

(i) Assistance may be provided under the scheme to proposed new EDIs or existing
EDIs for creation or strengthening/expansion of their infrastructure. The central
assistance under this scheme would be only catalytic and supplementary to the
contributions and efforts of the other stakeholders e.g. the concerned Institute,
States/UT Governments and other developmental agencies/NGOs/Institutions etc.
(ii) The applicant Institution should possess clear title on the land required for setting
up of the proposed / existing institute. In case the land is obtained on lease hold,
the tenure of the lease deed should be for at least 30 years.
(iii) The financial assistance will be for specific needs of each case for construction of
building, purchase of training aids/equipments, office equipments, computers and
for providing other support services e.g. libraries/data bases etc. The costs of land,
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construction of staff quarters etc. would not qualify for calculation of matching
grant from the Central Government.

3.2.2 Scale of assistance

(i) Maximum assistance under the scheme will be restricted to Rs. 150 lakh in each
case. However, for State level EDIs sponsored by the concerned State/UT
Government in the North Eastern region (including Sikkim) or Union Territories
of Andaman & Nicobar and Lakshadweep Islands, the maximum assistance would
be Rs. 270 lakhs or 90 percent of the project cost, whichever is less.
(ii) Institutions which have been earlier provided capital grant under the scheme, may
seek further grant for the purposes mentioned above. However, the maximum
assistance shall be limited to Rs 150 lakh [Rs. 270 lakhs for State EDIs in NE
Region (including Sikkim) or Union Territories of Andaman & Nicobar and
Lakshadweep Islands], including the grant released to them earlier.
(iii) Assistance under the scheme will be on matching basis, not exceeding 50 percent
[90 percent for State level EDIs in NE Region (including Sikkim) or Union
Territories of Andaman & Nicobar and Lakshadweep Islands] of the project cost
(excluding cost of land and working capital). The balance 50 percent of the
matching contribution (10 percent for State level EDIs in NE Region or Union
Territories of Andaman & Nicobar and Lakshadweep Islands) should come from
the concerned Institute, State/UT Government, public funded institution(s),
NGOs/Trusts/ Banks/Companies/ Societies/ Voluntary organizations etc.
(iv) The contribution of the State/UT Government/ other agencies should be in the
form of non refundable contribution/grant. The participation of the State
Government/other agencies by way of loan to the institution shall not be
admissible for the purpose of calculating assistance under this scheme.

3.2.3 Other Conditions

(i) All the proposals would be routed through the State/UT Government concerned
and would require recommendation of the State/UT Government concerned. The
State/UT Governments will examine the proposals, including the purpose,
requirement, suitability of the proposed location, possible linkages with nearby
industrial clusters and likely benefits etc., before recommending the proposals for
assistance under the scheme The State/UT Government would also examine the
financial estimates for the proposals and give its clear recommendation regarding
the amount of central assistance under the scheme.
(ii) Central government may nominate any officer, not below the rank of Under
Secretary of Govt of India, as its representative on the Board of Administration or
any other equivalent body, responsible for the management of the EDI. It would
be the responsibility of the concerned EDI to invite such nominated officer to all
meetings of the Board of Administration (or equivalent).
(iii) The assistance under the scheme shall be released, in full or part, only after the
applicant organization has either utilized its own part of matching contribution or
deposited its share/in the designated Bank account or issued sanction order for
release of the same in case of State/UT Government. In case, where first
installment (50%) of the assistance is released on the basis of sanction order of
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State/UT Government, the second installment (50%) of the assistance under the
scheme shall be released only after the matching contribution from the State/UT
Government has been received.
(iv) The assisted EDI shall be required to complete the construction within the given
time-frame and shall have to furnish the utilization certificate of the assistance
sanctioned within the period prescribed in the sanction letter.
(v) The assisted EDI shall not dispose of or lease out or create any charge over the
assets created by utilizing the assistance provided under this scheme, without
written permission from the MoMSME.
(vi) The assisted EDI shall not change the form or the basic character of the EDI,
without prior approval of MoMSME. The charter of the assisted EDI indicating
its objects, shall not be amended without written permission of the Ministry of
MSME.
(vii) The assisted EDI shall be required to carry out a minimum set of activities and
programmes every year, as prescribed by the Government.
(viii) The financial assistance provided under this scheme would be of non-recurring
and capital nature. Under no circumstances grant funds provided under the
scheme would be used to pay salaries and allowances etc. for the institute’s
faculty, staff or administrators.
(ix) The accounts of the assisted EDI shall be audited every year and the assisted EDI
shall be required to submit annual report along with financial statement to the
MoMSME, at least for a period of five years after receipt of the financial
assistance. The annual reports on implementation of the scheme would include the
details of construction activity, procurement of machinery/ equipment etc. during
the period under report. The annual reports must contain details of the activities
undertaken by the Institute during the period under report, along with the audited
accounts. The report would also include the details of participants/ trainees
undergoing training, as well as the details of successful entrepreneurs who have
set up their enterprises
(x) The assisted EDI shall be required to maintain a fixed assets register of
equipments/assets procured by utilizing grant funds for verification by Ministry of
MSME at any time.
(xi) In case of failure to utilize the sanctioned funds within time or its misuse,
misappropriation or diversion or violation of any one or more of the conditions
mentioned above, the Government will be entitled to recover the entire assistance
amount with interest, in addition to taking such other legal and/or penal action, as
deemed necessary.
(xii) Central government may also prescribe such other conditions, as deemed
necessary, before sanction/release of assistance.

3.3 Assistance for Training Programmes

3.3.1 Eligibility

(i) Assistance may be provided under the scheme to following Training Institutions,
for conducting Entrepreneurship Development Programmes (EDPs) and
Entrepreneurship cum Skill Development Programmes (ESDPs) and Training of
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Trainers (ToTs) programmes in the areas of Entrepreneurship and/or Skill
Development.

(a) National level EDIs (including branches),
(b) Training Institutions established by Partner Institutions (PIs) of
national level EDIs,
(c) Training/Incubation centres of NSIC,
(d) Training cum Incubation Centres (TICs) set up by Franchisees of
NSIC and
(e) Other Training institutions with proven professional competency,
capacity and experience, approved under the scheme.

(ii) Assistance would normally be provided for short term courses/training
programmes (non residential) only, i.e. ESDPs for 1 to 3 months (100 to 300 hours
of training inputs), EDPs for 2 weeks (72 hours of training inputs) and ToT
programmes (300 hours of training inputs). EDPs/ESDPs/TOTs of shorter/ longer
duration may, however, be considered/ sanctioned, with the approval of Secretary
(MSME), after recording justification for the same.
(iii) The financial assistance provided under this scheme would be of recurring and
revenue nature.
(iv) Central government may prescribe such other conditions, as necessary, before
sanction/release of assistance.

3.3.2 Scale of assistance

(i) The concerned training institution would be free to decide the training fee for
various training programmes viz. EDP/ESDP/ToT being conducted by it.
However, the assistance under the scheme would depend on the duration of the
training programme (number of hours of training inputs) and would be limited to
following rates or actual fee charged, whichever is less: -

Particulars
Maximum assistance per
trainee per hour (Rs)
SC/ST/Physically Handicapped (PH) /North Eastern Region (including
Sikkim), Union Territories of Andaman & Nicobar and Lakshadweep
Islands (NER+)
District Head Quarter (HQ) 60/-
Urban areas other than District HQ 50/-
Rural areas 40/-
Others
District HQ 50/-
Urban areas other than District HQ 40/-
Rural areas 30/-

(ii) Assistance for Training of Trainers (ToTs) programmes would be provided @ Rs
60 per trainee per hour.
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(iii) The trainees would be expected to make their own arrangement for travel and stay
during the training period. In case the residential facility is provided by the
Training Institution, it may charge the same from the trainee. It would be
permissible to dovetail the assistance under this scheme with facilities/benefits
available under schemes of other Ministries/ Departments/ State/UT Governments
etc. for reimbursement of travel, boarding and lodging expenses and stipend etc.
However, it would be the responsibility of the Training Institution to ensure that
there is no duplication and assistance for the same purpose is not claimed under
more than one scheme.

3.3.3 Other conditions

(i) The proposals for seeking assistance under the scheme for organising training
programmes (EDPs/ESDPs/ToTs) will be submitted to the Screening Committee
through the concerned national level EDIs/NSIC by the PIs and Franchisees of
EDIs/NSIC and directly in other cases. In case the proposal is submitted through
EDIs/NSIC, they shall examine the proposal(s) and give their recommendations
on the same. The Screening Committee shall then consider the proposal(s),
keeping in mind suitability of the proposal, competency, capacity and
experience/past performance of the Training Institution, availability of funds etc.
and forward the proposals, along with its recommendations to Secretary (MSME)
for approval.
(ii) After approval, the Ministry shall place the required funds with the national level
EDIs/ NSIC (in case training programme is organized by them or by their
PIs/franchisees). The concerned EDI/NSIC shall, in turn, release the funds to the
concerned PIs/franchisees, on successful completion of the training programme(s)
and furnish the Utilization Certificate to the Ministry. The concerned EDI/NSIC
shall also be responsible for ensuring the quality of inputs as well as certifying the
actual participation of trainees in the training programme. Utilization certificate in
respect of training programmes conducted by the EDIs/NSIC shall be furnished
by them directly on successful completion of training programmes. In other cases
funds would be released to the concerned Training Institution on reimbursable
basis after successful completion of the training programme.
(iii) The Screening Committee shall also lay down the criteria for examining the
competency, capacity and experience of the applicant Training Institution.
(iv) Central Government and/or the concerned national level EDI/ NSIC may also
conduct such further checks or verifications through its own offices or through an
independent agency, as deemed necessary.
(v) In case it is found subsequently that assistance has been claimed falsely or
fraudulently or assistance for the same item/activity has been claimed under some
other scheme also, the Government will be entitled to recover the entire assistance
amount with interest, in addition to taking such other legal and/or penal action, as
deemed necessary.

4. APPLICATION PROCEDURE

The applications under the scheme shall be submitted to the Director, MoMSME (Room No.
268, Udyog Bhawan, New Delhi 110 107) who shall process the applications and submit
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them to the Screening Committee, set up under para 5 below, for consideration. The
Screening Committee shall examine all the proposals received under the scheme and submit
its recommendations to Secretary (MSME). After approval of Secretary (MSME), the
admissible assistance shall be released/approval shall be conveyed, to the applicant
organisation.

5. SCREENING COMMITTEE

The composition of the Screening Committee will be as under:

i. J oint Secretary, Ministry of MSME - Chairman;
ii. Economic Adviser, MoMSME - Member
iii. Industrial Adviser/J oint Development Commissioner
from Office of Development Commissioner (MoMSME) - Member;
iv. Director/Under Secretary, IF Wing (MoMSME) - Member;
v. Director, MoMSME - Member Secretary

6. MONITORING AND EVALUATION

The progress of the scheme shall be regularly monitored by the Screening Committee/
Secretary (MSME) from time to time. The overall impact of the scheme shall be got
evaluated by an independent agency at the end of XI plan period or earlier, if required.
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