EXPRESSION OF INTEREST (EoI) - Vanbandhu Kalyan Yojana ...

Tender Notice no.: VKY/2010/1170/DSAG
EXPRESSION OF INTEREST (EoI)
For
Selection of Partners for Entrepreneurship
Development Project in Tribal Areas of Gujarat
Development Support Agency of Gujarat
Block No. 8, 2nd floor, New Sachivalaya, Gandhinagar 382010, Gujarat
Phone : (079) 23257679 ; Fax : (079) 23257678
E-mail: pallavishukla0108@gmail.com
August 2010
September 2010
Price: Rs. 5,000/- (Rupees Five Thousand only)

INVITATION FOR EXPRESSION OF INTEREST (EoI)
The Chief Executive Officer, D-SAG (CEO, D-SAG) desires to invite Private
agencies to express their interest to promote Entrepreneurship projects in the tribal
areas of Gujarat. Proposal in the form of EoIs in duplicate is requested in
complete accordance with the documents/attachments as per following guidelines.
To
SCHEDULE FOR INVITATION OF EoI
Issue of EoI
From 17/09/10 at 12.00 hrs to 25/10/10 up to
16.00 hrs.
Pre submission Meeting
On 05/10 /10 at 16.00 hrs at the office of
Chief Executive Officer
Development Support Agency of Gujarat,
New Sachivalaya, Block No.8, 2 nd Floor,
Gandhinagar.
EoI due date: 25/10/10 at 16.00 hrs
EOI Submission Address
Chief Executive Officer
Development Support Agency of Gujarat
New Sachivalaya, Block No.8, 2 nd Floor
Gandhinagar.
Technical Proposal Opening Date & Time:
25/10/10 at 16.00 hrs
Venue:
Chamber of Chief Executive Officer,
Development Support Agency of Gujarat,
New Sachivalaya, Block No.8, 2 nd Floor,
Gandhinagar.
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Note:
1. Please address all queries and correspondence to the Chief Executive Officer,
Development Support Agency of Gujarat, Block No.8, 2nd Floor, New
Sachivalaya, Gandhinagar or email address pallavishukla0108@gmail.com
2. If the office of the Development Support Agency of Gujarat happens to be closed
on the day of receipt of the EoIs as specified, the EoIs will be received and opened
on the next working day on opening of the office up to the same time and at the
same venue.
General Instructions:
1. Technical Proposal: Interested agencies shall submit physically their proposal in
sealed envelopes super-scribed with due date, time, project and nature of EOI.
Original and one copy of Technical Proposal complete with all technical details
asked for. Original printed document shall be considered as authentic. All pages
of the offer must be signed.
2. Services offered should be strictly as per specifications mentioned in this EOI
Document. Please spell out any unavoidable deviations, article-wise, in your
proposal under the heading “Deviations”.
3. The price of one copy of the EoI Document is Rs. 5000/-, which can be paid by
crossed Demand Draft. The Demand Draft may be drawn in favour of
‘Development Support Agency of Gujarat’ payable at Gandhinagar.
Yours faithfully,
For and on behalf of
Chief Executive Officer
Development Support Agency of Gujarat (D-SAG),
Office of the Development Support Agency of Gujarat (D-SAG)
Gandhinagar
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INTRODUCTION
The Vanbandhu Kalyan Yojna (VKY) of Tribal Development Department under
Chief Minister’s 10-Points Program has made large scale investments for the
development of 43 tribal dominated talukas of Gujarat. The large part of the investment
has been made to enhance livelihood resources of the Scheduled Tribe families through
projects in Education, Agriculture sector, Dairy sector and other skill enhancement
activities. The goal for all these activities is to finally double the income of the tribal
families and create wealth and well-being in the tribal areas. A brief note on the areas of
focused intervention under VKY is given at Annexure-III.
Development Support Agency of Gujarat (D-SAG), an autonomous society
promoted under the Tribal Development Department, Government of Gujarat, has been
mandated to assist in the implementation of livelihood related projects under the
Vanbandhu Kalyan Yojna. The project aims to develop the Scheduled Areas through
direct increase in the income of the tribal population as well as increasing the economic
activities in the Scheduled Areas.
The state Government acknowledges the importance of private sector
participation in development, provision of better services and wealth creation. This
realization led to the formulation of a simple yet well drafted Public Private Partnership
(PPP) Policy which is being implemented in the state through projects worth millions of
Rupees. The PPP Policy has been able to attract a number of eminent private sector
players to the tribal areas like Mico Bosch, Maruti, GTZ, IL&FS, Monsanto India,
Ambuja Cement, IBM, Intel and many others.
In the recent years, along with a high and steady growth of Gujarat, the 43 tribal
talukas on the eastern fringe of the state too have been steadily growing. However, the
area which has developed into a large potential market has remained mostly untapped
by private players. Unlike many other states, tribal areas of Gujarat have an extensive
availability of infrastructure required for any business to prosper including roads, water
and power. The other most important asset for the area – the local people – are also
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willing partners. Their exposure to urban standards has helped them tune skill sets to
cater to industry needs.
PROJECT DELIVERABLES
The objective of this Entrepreneurship Development Project is to provide sustainable
self employment to tribal youth across Gujarat from varied sectors ranging from
transportation, food, retail, automobile, personal care, IT enabled services, agribusiness
etc. Broadly, the objectives of the project can be classified under the following
two divisions:
a. Providing sustainable self employment: To help nearly 1500 tribal youth
in the current year and 5000 tribal youth in the next 3 years set up sustainable,
individual enterprises or ‘business units’ in various sectors. The enterprise must
develop and take off like any other profitable commercial entity and should
generate further employment in the area.
b. Providing quality services in tribal areas: As mentioned earlier, the tribal
areas of Gujarat have witnessed fast paced growth and have become large
potential yet unexplored markets for the private sector. The increase in
purchasing power of the population has led to a growing demand for better
quality products and services in the tribal areas. The need to bridge the demand
supply gap may be seen as an opportunity for the private sector to explore
untapped rural/tribal markets.
The above mentioned objectives may be achieved by promoting private sector
initiatives in tribal areas under the Public Private Partnership (PPP) Policy of the
Department.
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ROLE OF PARTNERS
I. Role of Private Partners:
a. Develop a detailed business plan for the proposed sector: The
business plan should include the proposed project location, training
requirements, investment requirements, input procurement, marketing and
sales plan, projected cash flows for a period of at least next three years,
financial profitability ratios for the venture and other project modalities.
b. Creating a project team: The private partner will have to deploy a
dedicated project team for the planning, implementation and support for this
project.
c. Identification of suitable tribal youth for the proposed venture:
This process would include inviting and screening of applications and
selection of eligible tribal youth for the purpose. However, the department has
an extensive and updated database of 3.6 lac tribal youth interested in skill
training and employment programmes. The database too, might serve as a
tool for selecting the appropriate candidate.
d. Organizing Training: Training of the selected candidates for the proposed
business and providing on-the-job experience to the candidate will be the
responsibility of the private partner. This may be done by the partner itself or
through a consortium of more than one agencies.
e. Statutory clearances: Getting the required statutory clearances like
license/permit and other commercial and/or legal requirements.
f. Facilitation for business loan: In partnership with DSAG, the private
partner will have to help the entrepreneur get the business loan from either of
the following loan schemes/corporation:
a. Prime Minister’s Employment Generation Programme (PMEGP)
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. Shri Vajpayee Bankable Yojana
c. Gujarat Tribal Development Corporation (GTDC)
g. Setting up business unit: Helping trained tribal youth to setup ‘business
activity’ and providing hand holding support for one year to stabilize the
venture.
h. Ensuring profitability/income: Ensuring minimum yearly income of
Rs. 48,000/- annually for the candidate after paying the loan installment.
i. Up scaling the business: Exploring expansion and growth opportunities
for the business enterprise in the foreseeable future.
j. Progress Report: The private partner will submit regularly submit
progress report of the on-going project for the purpose of documentation to
the department.
II.
Role of DSAG:
a. Feasibility study (if needed): Providing up to Rs. 10 lac to the
selected Private Partner for carrying out the feasibility study of the
business in the tribal areas in Gujarat.
b. Providing financial assistance for identification and training:
DSAG will pay the cost of training and hand holding/ mentoring to the
private partner as per its approved norms.
c. Providing venture capital for setting up business units:
Facilitating business loan from either of the following schemes:
a. Prime Minister’s Employment Generation Programme (PMEGP)
b. Shri Vajpayee Bankable Yojana
c. Gujarat Tribal Development Corporation (GTDC)
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d. Provide incentives to Private Partners for every stabilized
enterprise/business unit after completion of first year. For every stabilized
and profitable business unit, 3% of the loan amount will be given to the
private partner as an incentive once the loan is fully recovered. Conversely,
5% of the loan amount will be deducted from the last installment to be
paid to the private partner for every failed business unit.
e. Monitoring of the project and documenting success stories.
DETAILS OF (LIKELY) ASSIGNMENTS/SECTORS COVERED UNDER THE
PROJECT
An indicative, though not exhaustive, list of sectors which may be explored for
entrepreneurship development are stated below. However, it is to be noted that the
selected Private Partner may suggest any sector, in addition to the list below, which has
growth potential.
S. No. Sector Potential/Likely Partners
1. Retail Sector: One stop Rural
Retail Shop / Rural Malls
including Agri inputs retail
units
2. IT and IT Enabled Services
Sector: Rural e-Solutions
3. Food sector: Food Kiosks/ Push
Carts
4. Automobile Sector: Garages in
Rural Areas
DCM Shriram Consolidated Ltd. (DSCL),
ITC, Future Group, Reliance Retail,
HUL, Vishal Mega Mart, Parle Agro or
any other similar group
HCL Pvt. Ltd., IBM, Intel Pvt. Ltd., TCS,
Infosys, Wipro, CMC Pvt. Ltd. or any
other similar group
Amul, Havmor, Nestle, Bikanervala,
Vadilal, Britannia, Candico, Kwality
Walls, Marico, Mother Dairy, Monginis
or any other similar group
Maruti, Mahindra, Bajaj, Honda, MRF,
TATA, or any other similar group
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5. Transportation Sector: Public
transportation vehicles
6. Fashion and Grooming Sector:
Beauty Shops
7. Entertainment and/or
Electronics and
Communications Sector
Maruti, Mahindra, TATA, Bajaj or any
other similar group
Ayur, Lakme, Eves Beauty, Lotus
Professional Salon or any other similar
group
Planet M, Music World Entertainment
Ltd., BPL, Videocon, Tata Sky, DishTV,
Reliance Communication (Big TV), Airtel
Communication, Vodafone
Communication, Uninor, Idea
Communication, Next Retail India Ltd.
or any other similar group
DURATION OF THE PROJECT
Initially, the duration of the project will be three years. However, it can later be
extended based on successful performance and mutual agreement between the parties.
SELECTION PROCEDURE
The private partners from each category (sector-wise) will be selected by a simple
two-phase process details of which are given below:
Phase-I:
Expression of Interest (EoI)
Step-1: The applicant agency has to merely qualify on the following criteria:
a. The applicant agency should have minimum 3 years experience of
production/selling of proposed sectors’ services/products and should
provide the evidence of the same;
b. The applicant should have minimum yearly turnover of Rs. 25 crore and
should provide the evidence of the same;
c. The applicant agency should be ready to start with no less than 50
trainees/entrepreneurs in the first year and at least 250
trainees/entrepreneurs in the next three years.
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Step-2: A brief Proposal/Concept Note submitted by the agency should discuss the
following points:
S. No. Parameter Weightage/Score
1. Viability of project in terms of proposed products/
10
services. (The present demand and supply of such
products/services).
2. Possibility of sustained income through proposed model
10
of ‘Business Unit’. (Profitability)
3. Institutional arrangements proposed for the training
10
and lateral linkages.
4. Possibility of expansion/ up scaling of activities in the
10
proposed sector and scope for replication.
5. Availability of trained workforce and infrastructure 10
Total 50
The proposal submitted by the applicant agency will carry 50 percent weightage for the
purpose of evaluation.
Step-3: The final step will be that of making a presentation before the technical
committee of D-SAG. The purpose of the presentation is short listing in some cases, but
mostly, further improvement of the proposal through mutual discussion and agreement.
The presentation will carry a weightage of 50 percent for the purpose of evaluation. The
evaluation criteria for the same will be as follows:
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S. No. Parameter Weightage/ Score
1. Project Concept 10
2. Viability – Return on Investment, Sustainability 10
3. Scope/Possibility for Up scaling 10
4. Approximate investment requirement per business unit 10
5. Training and mentoring/handholding cost for a year 10
Total 50
Phase-II:
Tendering
The partners selected in the first phase will be sent the tender document and requested
to submit a technical proposal and financial bid. The technical proposal will carry a
weightage of 80 percent and the financial bid will carry a weightage of 20 percent for the
purpose of evaluation.
The potential private partner may apply to one or more than one sectors. The
selected private partner will sign an MoU with ‘Development Support Agency of Gujarat’
(D-SAG).
Please take a note of the following:
i. This is a call for the submission of EoI, that is, phase-I of the selection
procedure.
ii.
As mentioned above, for the evaluation of the EoI, step- 2 and step-3 will be kept
in mind. Step-1 is merely a qualifying criterion. However, if one fails to qualify
in the criteria mentioned in step-1, their EoI/Proposal will be out rightly
rejected.
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iii.
iv.
Upper ceiling for total investment and working capital is Rs. 2 lac as initial loan
and Rs. 3 lac at the end of first year. This amount will include 33% back end
subsidy.
Upper ceiling for the cost of training is Rs. 20,000/- per trainee and for the cost
of mentoring/hand holding for a year is Rs. 10,000/- per trainee.
LIST OF DOCUMENTS TO BE SUBMITTED
As a part of the technical proposal, the following documents need to be provided by the
agencies submitting the EoI:
1. Filled in copy of Annexure-1 providing the infrastructure and manpower details
of the agency;
2. Annual Report of the agency for the last three years;
3. Audited balance sheet of the agency for the last three years;
4. Self certification of a minimum of three years of experience in the proposed
sector of activity;
5. Brief Proposal/Concept note (maximum 5 pages) on the proposed activity. This is
to be done as per the earlier mentioned Proposal evaluation guidelines.
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Annexure-I: Details of the Agency
1. Details of the Agency:
Name of the Agency
Year of Establishment
Head Office Address
2. Details of Contact Persons:
Name of the Person Designation Contact Number
Fax Number
Email ID
3. Details of Physical Infrastructure:
Office Area (in sq. ft.)
Computers (in nos.)
Other equipment: (Name with brief
specification and quantity)
Address of branch offices (if any)
4. Details of Workforce proposed to be allocated to the project:
Name Qualification Experience Main Skill Set Current Salary
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Annexure-II: Population details of ITDP districts
S.No. Districts
Major urban
centers /tribal
Towns
Total
Population
Urban
Population
Rural
Population
1 Banaskantha Danta, Amirgadh, 2504244 275501 2228743
2 Sabarkantha Himatnagar,
Vijaynagar,
Khedbrahma,
Bhiloda, Shamlaji,
Meghraj, Malpur
3 Panchmahal Godhra, Halol,
Ghoghmba, Kalol,
4 Dahod Dahod, Limkheda,
Fatepura,
Dhanpur
5 Vadodara Chotaudepur,
Pavijetpur
6 Narmada Rajpipla, Netrang,
Sagbara,
Dediapada
2082531 225129 1857402
2025277 253362 1771915
1636433 156323 1480110
3641802 1646222 1995580
514404 52106 462298
7 Bharuch Valia, Zaghdia 1370656 352560 1018096
8 Surat Mandvi, Muhuva,
Uchhal
4275540 2926302 1349238
9 Dang Ahwa, Saputara 186729 0 186729
10 Navsari Vansda 1229463 336353 893110
11 Valsad Dharampur,
Kaprada, Valsad
1410553 381161 1029392
12 Tapi Songadh, Vyra 719634 69515 650119
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Annexure-III: Chief Minister’s Ten Point Programme
To ensure a better quality of life for the Scheduled Tribe population, Gujarat’s state
funding in the Scheduled Tribes Areas has increased by more than 2.5 times. The State
Government has formulated and further started implementing a Rs. 15,000 crore
package called Chief Minister’s Ten Point Programme (Vanbhandhu Kalyan Yojana) for
Tribal Areas.
The progress made on the ground has been encouraging, especially in agriculture and
horticulture based programmes, dairying, water harvesting, irrigation, education, skill
up gradation and provision of basic amenities such as roads and electricity. The
programme is quality-oriented and is aimed at improving the quality of social
infrastructure and civil infrastructure development in these areas. It comprises the
following ten components:
• Quality and sustainable employment for 5 lakh Scheduled Tribe families
• Emphasis on quality education and higher education
• Accelerated economic development of tribal areas
• Health for all
• Housing for all
• Safe drinking water to all
• Irrigation
• All weather roads
• Universal availability of electricity
• Urban development
For more information, please visit the website: http://www.vanbandhukalyanyojana.gujarat.gov.in
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