Annexure 2: Draft Memorandum of Understanding
This tripartite Memorandum of Understanding (MoU) is signed on this ____ day of _____, 200_
at Gandhinagar.
BETWEEN
Industries Commissioner, Government of Gujarat, Block No. 1, 2nd Floor, Udyog Bhavan,
Sector 11, Gandhinagar 382 017 (hereinafter referred to as Industries Commissionerate).
AND
Director of Employment and Training (DET), Block No.1, 3rd Floor, Dr. Jivraj Mehta Bhavan,
Gandhinagar 382 010 / Director of Technical Education (DTE), Block No. 2, 2nd Floor, Dr.
Jivraj Mehta Bhavan, Gandhinagar 382 010 (hereinafter referred to as Institute Partner).
AND
_____________, a company/ industry association/ Institute duly incorporated under the
Companies Act, 1956/ Gujarat Co-operative Societies Act/ Trust Act, having its registered
office at ___________(hereinafter referred to as Industry Partner).
WHEREAS:
A. On account of several initiatives and programs undertaken by Government of Gujarat,
there has been a massive flow of investment in the recent time in industrial and
infrastructure projects in Gujarat. In order to support this investment, large pool of skilled
manpower at different levels will be required in the coming years.
B. Government of Gujarat therefore, proposes to associate the Industry Partner in imparting
necessary skills specific to the requirements of industries by introduction of new/ short
term bridge courses at the existing institute(s) at Industrial Training Institute/
Polytechnic College/ Engineering College through a Public-Private Partnership (PPP)
model.
C. (_____ (Company) is mainly engaged in manufacturing of __________)/ (Industry
Association servicing of ________)/ (_____ (Name of Institute) is providing training in
_____/ running specialized courses of _____/) and is keen on being associated with the
above-mentioned model.
D. All the parties herein being desirous of taking up a PPP project have decided to enter into
this present MoU on a non-exclusive basis.
E. This Memorandum of Understanding is signed in order to introduce a new course or such
other courses, the content, composition, venue of which is to be decided by the
Institutional Management Committee (IMC) proposed to be constituted for the purpose
through the PPP model.
NOW, THIS AGREEMENT WITNESSETH AS FOLLOWS:
1. The DET or DTE, Industry/ Industry Association/ Institute and Industries
Commissionerate will have Institutional Management Committee (IMC) to run the
courses.
2. The IMC will carry out following functions:
(a) Form an Advisory Committee comprising representatives of the Industries/
Industries Association, Government and Institutes including sector experts and
shall hold its meeting atleast twice in a year.
(b) Decide on the requirements of equipment and training facilities and procure the
assets.
(c) Decide and finalize the course content.
(d) Determine the fee structure for the course.
(e) Receive grants/donations
(f) Maintain separate accounts for receipts and expenditure.
(g) Appoint the Course Coordinator.
(h) Select external and internal faculties and decide their remuneration.
(i) Brand and promote the objectives of the Center as deemed fit.
3. The Institute Partner through Directorate of Technical Education (in the case of
Engineering Colleges/ Polytechnics)/ Directorate of Employment & Training (in the case
of ITIs) will:
(a) Provide premises with space as necessary to run the course at the Host Institute.
(b) Provide necessary accreditations to the course on fulfillment of requisite criteria
(c) Conduct examinations on completion of course
(d) Integrate bridge courses as modules in regular training programs in due course of
time
(e) Provide certification on successful completion of the course
(f) Nominate members to the Advisory Committee and IMC
4. The _______ (Name of Industry Partner) will:
(a) Raise minimum 25% requirement of the cost of machinery & equipment and
required funds if any for upgradation of infrastructure facilities.
(b) Sponsor trainees for a minimum of 25% intake capacity.
(c) Train the faculty of the host institution for smooth conduct of the course.
(d) Extend technical support initially, if required, by sponsoring experts from the
industries for teaching purposes, until necessary capacity is built within the
institute.
(e) Nominate members on the Advisory Committee of the IMC.
(f) Impart practical/on the job training to the trainees.
5. Industries Commissionerate will:
(a) Provide upto 75% (i.e. maximum of Rs. 100 lakhs) of the capital cost required for
plant & equipments at existing institutes for introduction of new course as a one-
time grant to the IMC.
(b) Nominate members on the Advisory Committee of the IMC.
6. All the parties agree to enter into this MoU on a non-exclusive basis.
7. The parties hereto agree to enter into this MoU on a principle-to-principle basis and none
of the parties shall do or cause to be done anything derogatory to the reputation of the
other.
8. During the term of the MoU and thereafter for a reasonable period, all the parties hereto
undertake on behalf of their respective subcontractors/ employees/ representatives/
associates to maintain strict confidentiality and present disclosure thereof, of all the
information and data exchanged/ generated pertaining to work/ activity under this MoU
for any purpose other than that specified in this MoU.
9. None of the parties will be held responsible for non-fulfillment of their respective
obligations under this MoU due to work/ activity under this MoU for any purpose other
than in accordance with this MoU.
10. None of the parties will be held responsible for non-fulfillment of their respective
obligations under this MoU due to the exigency of one or more of the force majeure
events such as but not limited to acts of God, war, flood, earthquakes, strikes, lockouts,
epidemics, riots, civil commotions, etc., provided on the occurrence and cessation of any
such events, the party affected thereby shall give a notice in writing to the other party
within one month of such occurrence of cessation. If the force majeure conditions
continue beyond six months, the parties shall jointly decide about the future course of
action.
11. Time shall be the essence of this MoU and shall be effective from this date of signing of
this presents for a period of 60 days within which the parties herein shall enter into a
formal Agreement with regard to formation and functioning of the proposed IMC and
Advisory Committee that it forms. The said IMC shall be formed within 6 months from
_____, i.e. date of signing of this MoU, failing which this present MoU and the aforesaid
Agreement, if at all entered into, shall both become infructuous.
12. During the tenure of the agreement, parties hereto may terminate the agreement either for
breach of the terms and conditions of the agreement or otherwise by giving a 3 (three)
months notice in writing to the defaulting party within which period all financial
reconciliation are to be completed by and among the parties. Failure of either party to
terminate the agreement on account of breach or default by the other shall not constitute a
waiver of that partys right to terminate this agreement.
Any such termination shall not affect the smooth course completion of the existing batch
of students and upon serving of notice of termination by any of the parties, the IMC shall
immediately restrain itself from further induction of any new batch of students and/ or
individual students.
Upon serving of notice of termination, none of the parties herein shall be under any
obligation to meet with any further expenses of the proposed IMC apart from the ones
required for the smooth course completion of the existing batch.
13. Initially the IMC shall be formed for a period of 3 years and the parties herein, upon
mutual agreement, may extend the said period from time to time.
14. All notices and other communications required to be served on each of the parties under
the terms of this MoU, shall be considered to be duly served if the same shall have been
delivered to by hand and properly acknowledged by the respective part/ parties, posted
by registered mail or sent by any accredited Courier Service to the respective part/
parties at its last known/ officially disclosed address of business.
15. No amendments or modification of this MoU shall be valid unless the same is made in
writing by all the parties herein or through their authorized representatives and
specifically stating the same to be an amendment of this agreement. The modifications/
changes shall be effective from the date on which they are made/ executed unless
otherwise agreed to.
16. Except as hereinbefore provided, any dispute arising out of this MoU, the same shall be
referred to the arbitration of 2 (two) arbitrators, 1 (one) to be appointed by each party to
the dispute and in case of difference of opinion between them to an umpire appointed by
the said 2 (two) before entering on the reference and the decision of such arbitrators or
umpire, as the case may be, shall be final and binding on all the parties. The venue of
arbitration shall be at Ahmedabad under the Indian Arbitration & Conciliation Act, 1996.
This Memorandum of Understanding provides the Industry-Institute Consortium to proceed
for introduction of new course/ short term bridge course to fulfill the objective of making
available the skilled manpower in the State.
For and on behalf of Director of
Technical Education/ Director of
For and on behalf of __________
(Company/ Industry Association)
Employment and Manpower Training
_________________________________
(Authorized Signatory)
_________________________________
(Authorized Signatory)
For and on behalf of Industries
Commissioner
_________________________________
(Authorized Signatory)
Date:
Place: Gandhinagar
