Ichalkaranji - Ministry of Textiles
Ichalkaranji - Ministry of Textiles
Ichalkaranji - Ministry of Textiles
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<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>, Government <strong>of</strong> India, Udyog Bhawan, New Delhi – 110011INVITATION OF EXPRESSION OF INTERESTS (EoIs)Expression <strong>of</strong> Interests (EoIs) are invited for appointment <strong>of</strong> a Cluster Management &Technical Agency (CMTA) for development <strong>of</strong> two Mega Powerloom Clusters at<strong>Ichalkaranji</strong> and Bhiwandi in Maharashtra under ‘Comprehensive Powerloom ClusterDevelopment Scheme (CPCDS)’.The CMTA for each Mega Cluster will be selected through two stages <strong>of</strong> competitive biddingprocess, i.e. Technical Bids and the Financial Bids. The details <strong>of</strong> eligibility criteria, broadTerms <strong>of</strong> Reference (TOR), Guidelines for submission <strong>of</strong> Bid and other terms and conditions,are available on the website <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> (www.texmin.nic.in) OR can beobtained from below mentioned <strong>of</strong>ficer from 11.00 A.M. to 5.00 P.M. on working days.The eligible organisations/agencies, interested in rendering their services as CMTA maysubmit technical & financial bids, in sealed envelopes separately and put them together in asingle envelop, super scribing the title <strong>of</strong> the project and name <strong>of</strong> the Cluster (applied for)within 30 days <strong>of</strong> the date <strong>of</strong> the advertisement to Shri Ishwar Sharan, Under Secretary,<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>, Room No.54, Udyog Bhawan, New Delhi-110011 latest by 1700 hours(5.00 P.M.). In case, the 30 th day falls on a holiday, the next working day will be consideredas the last day. Separate bids are to be submitted if agencies wish to apply for both clusters.Sd/-F.No.9/2/2012-PL(MC)(Ishwar Sharan)Under Secretary to the Government <strong>of</strong> IndiaPh.No.23063060E-mail:pl-textiles@nic.in
Government <strong>of</strong> India<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>Udyog Bhawan, Maulana Azad Road,New Delhi-110011.Tender Document including Terms <strong>of</strong> Reference (TOR) for appointment <strong>of</strong> ClusterManagement & Technical Agency (CMTA) for development <strong>of</strong> <strong>Ichalkaranji</strong> inMaharashtra as Powerloom Mega Cluster under ‘Comprehensive PowerloomCluster Development Scheme (CPCDS)’.I. BackgroundIn order to provide impetus to the Powerloom Sector by creating state <strong>of</strong> the artinfrastructure, it has been decided to develop <strong>Ichalkaranji</strong> in Maharashtra as PowerloomMega Cluster. The scheme <strong>of</strong> Powerloom Mega Cluster has been commissioned to scale upthe infrastructural facilities and production chain at traditional textiles clusters, which haveremained unorganized and have not kept pace with the modernization and development thathave been taking place so far. The prospects <strong>of</strong> the textile sector in this segment lie ininfrastructure upgradation, modernization <strong>of</strong> the machinery, products diversification,innovative manufacturing as well as designing know-how, skill upgradation etc.2. The guiding principles underlying the design <strong>of</strong> cluster would be to create world-classinfrastructure and to integrate the production chain in a manner that caters to the businessneeds <strong>of</strong> the local Small and Medium Enterprises (SMEs). In brief, the main objective <strong>of</strong>setting up these clusters is to assist the entrepreneurs to set up world-class units with moderninfrastructure, latest technology, and adequate training and Human Resource Development(HRD) inputs along with appropriate market linkages.3. The Scheme is to be implemented on Public Private Partnership (PPP) mode throughproject specific Special Purpose Vehicle (SPV) <strong>of</strong> the user industry (one or more ProjectSPV). The cluster will be developed with an upper Government <strong>of</strong> India’s share <strong>of</strong> Rs.70crore per cluster in a time frame <strong>of</strong> 4 years. A copy <strong>of</strong> the draft guidelines <strong>of</strong> the Scheme(CPCDS) for mega cluster project in Ichalakarnji, is enclosed as Annexure I forreference. It may be noted that the subject guidelines are subject to modification andfinal guidelines for the project will be as approved by the EFC/PAMC etc. whileconsidering the DPR submitted by the CMTA. Nature and level <strong>of</strong> assistance (subject to aceiling <strong>of</strong> Rs.70 crore) to the <strong>Ichalkaranji</strong> Powerloom Mega Cluster will be more need
ased and suitable to the local requirements and should address the overall objectives <strong>of</strong> theMega Cluster scheme. Accordingly, components that are necessary to meet the overallobjectives <strong>of</strong> Mega Cluster Schemes are to be identified by the CMTA in the DetailedConceptual Report (DCR)/Diagnostic Study Report and Detailed Project Report withjustification and supporting data and to be got approved by the competent authority.4. In order to ensure targeted, speedy and efficient implementation <strong>of</strong> the Scheme, theservices <strong>of</strong> a competent pr<strong>of</strong>essional agency is proposed to be engaged by the <strong>Ministry</strong> <strong>of</strong><strong>Textiles</strong>, as Cluster Management and Technical Agency (CMTA). It will be mandatory forthe CMTA to open an <strong>of</strong>fice/establishment in <strong>Ichalkaranji</strong> in Maharashtra.5. Thus, Expression <strong>of</strong> Interests (EoI) are invited for appointment <strong>of</strong> a ClusterManagement & Technical Agency (CMTA) for development <strong>of</strong> <strong>Ichalkaranji</strong> in Maharashtraas Powerloom Mega Cluster during the 12 th Plan period.II. Scope <strong>of</strong> work6. The scope <strong>of</strong> services to be rendered by the CMTA has been detailed in Attachment-II. These services are indicative in nature and Govt. may assign any other task asdeemed fit to CMTA. Indicative list <strong>of</strong> points to be covered in the Detailed ProjectReports for the instant project are given in Attachment-III.III.Role <strong>of</strong> the Cluster Management and Technical Agency ( CMTA)7. The nature <strong>of</strong> the proposed project warrants proactive technical and managerialassistance on "concept" to "commissioning" basis, and therefore the services <strong>of</strong> apr<strong>of</strong>essional agency (selected through competitive bidding system) will be utilized bythe <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> as CMTA for this CPCDS project.8. Such agency shall have proven capability in terms <strong>of</strong> technical, managerial, financialinfrastructure and capacity building expertise that are required to design and executecluster oriented interventions and knowledge <strong>of</strong> the Textile Sector.
9. CMTA, apart from assisting the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> in designing and monitoring <strong>of</strong>the project, will proactively work with the cluster stakeholders and the SPV. Theillustrative list <strong>of</strong> responsibilities <strong>of</strong> such CMTA are given below:Preparation <strong>of</strong> Detailed Conceptual Report(DCR) covering diagnostic study <strong>of</strong> thecluster, identification <strong>of</strong> interventions and preparation <strong>of</strong> implementation strategy indialogue and with due consultation <strong>of</strong> cluster and sector stakeholders.Sensitizing and mobilizing the stakeholders to be part <strong>of</strong> the proposed interventionsand identifying from amongst the stakeholders persons or units for establishment <strong>of</strong>SPV(s).Establishment and structuring <strong>of</strong> the SPV through a widely published process.On approval <strong>of</strong> DCR by the <strong>Ministry</strong>, CMTA will prepare the DPR in consultationwith SPV.Assisting the SPV in identifying suitable land, where required.Assisting the SPV(s) in obtaining requisite statutory approvals /clearances.Assisting the <strong>Ministry</strong> in releasing funds for the project to the implementingagencies.Assisting the SPVs in identifying appropriate grant schemes in the State or CentralGovernment from funds can be dovetailed to the project.Assisting SPVs in obtaining Financial Closure. Assisting the SPV(s) in identification and engagement <strong>of</strong> serviceproviders/contractors for various services required for preparation <strong>of</strong> DPR andimplementation <strong>of</strong> components under such DPR.
Providing interfacing support and linkages between the SPV(s) and various otherstakeholders, particularly the Government organizations, buyers and financialinstitutions.Providing periodical progress reports to the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> with respect toachievements <strong>of</strong> the stated outcomes.Maintaining the progress and growth <strong>of</strong> the SPV and the project for the <strong>Ministry</strong> fora period <strong>of</strong> 3 years after completion and submission <strong>of</strong> diagnostic reports that wouldprovide a feedback to the <strong>Ministry</strong> on the impact <strong>of</strong> the scheme as well as possiblecorrection to the guidelines.IV.Technical criteria (eligibility):10. The broad requirements to become eligible for CMTA are as follows: Should have proven and demonstrable experience, expertise and resources inproviding consultancy / supervisory services for holistic and integrated development<strong>of</strong> clusters. Should have experience <strong>of</strong> working and development <strong>of</strong> the textile sector/ clusterdevelopment approach, preferably powerloom/handloom/ handicraft segment(s). Should have pr<strong>of</strong>essionals with expertise in textiles (preferably in powerloom), legal,company secretariat, project financing, infrastructure planning, capacity building,technology upgradation, market development, institutional development, etc. Should have reasonable experience in areas relating to arrangement <strong>of</strong> finance,management <strong>of</strong> clusters, interaction with the Central and State Governments, etc. Should have experience <strong>of</strong> at least one project <strong>of</strong> a minimum cost <strong>of</strong> Rs. 1 crore <strong>of</strong>consultancy in industry (preferably <strong>Textiles</strong>) sector. Should have either pan India presence or strong presence in the Cluster State/Area.
Should have sound financial position to undertake the work and a networth <strong>of</strong>minimum <strong>of</strong> Rs.50 lakh. The annual turnover for each <strong>of</strong> the three preceding financialyear should not be less than Rs.2 crore in each <strong>of</strong> the years.Note: The agency should furnish the relevant documents in support <strong>of</strong> the above.V. Selection:11. The CMTA will be selected through two stages <strong>of</strong> competitive bidding process, i.e.Technical Bids and the Financial Bids.VI.Selection Process12. The bidding process shall be carried out in two stages i.e. Technical Bid (in the form<strong>of</strong> detailed presentation) & Financial Bid. The Technical Bids shall first be evaluated andfinancial bids <strong>of</strong> only those agencies meeting the technical criteria shall be opened.13. Any eligible agency interested in rendering the services as CMTA for the Schememay express interest by intimation and make a detailed presentation on the technical aspects.The information may, inter alia, include:a) Experience <strong>of</strong> the firm including experience <strong>of</strong> development <strong>of</strong> industrial infrastructureprojects, qualification and experience <strong>of</strong> the key personnel with expertise in textiles,legal, company secretariat, project financing, infrastructure planning, capacitybuilding, technology up gradation, market development, institutional development,etc.b) Presence in the country / cluster ( Location details and employee strength may beprovided) .c) Audited Balance Sheet for last three years may be provided.d) Pro<strong>of</strong> <strong>of</strong> the similar projects undertaken.(also refer to Technical criteria (eligibility) for the purpose)
14. Evaluation <strong>of</strong> Technical Presentation – Point ProcedureTechnical score to have a high weightage in deciding the final selection <strong>of</strong> theconsultant - the technical proposal (in the form <strong>of</strong> presentation) will be given aweightage <strong>of</strong> 70%. Complete Technical Presentation will, thus, have 70Points. The financial proposal shall be allocated weight <strong>of</strong> 30% and will, thus, have 30Points. The price bids <strong>of</strong> only those consultants who qualify technically will beopened. The proposal with the lowest cost may be given a financial score <strong>of</strong>100 and the other proposal given financial score that are inverselyproportionate to their prices. The combined score would be worked out as under:Total points = T(w) x T(s) + F(w) x LEC/EC[T (w) stands for weight <strong>of</strong> technical score; T(s) stands for technical score;F(w) stands for weight <strong>of</strong> financial proposal; EC stands for Evaluated Cost <strong>of</strong>the financial proposal; LEC stands for Lowest Evaluated Cost <strong>of</strong> thefinancial proposal].Procedure for Detailed Evaluation <strong>of</strong> Technical Qualifications:Criteria, sub-criteria and point system for evaluation to be followed are asunder:S. No. Particulars Score1. Specific experience <strong>of</strong> the agency relevant to the assignment/job/ 70Qualification & competency <strong>of</strong> the Key pr<strong>of</strong>essional staff2. Adequacy <strong>of</strong> the proposed methodology and work plan w.r.t. Terms <strong>of</strong>Reference –30 Technical approach & methodology (50%) Work Plan (30%) Organization & Staffing (20%)
ParticularsTotalPointsA. Firm Experience 40AI. Years <strong>of</strong> Experience 10Years <strong>of</strong> Experience3 -5 years = 56-8 years = 7Graded points>8 years = 10A2. Proven and demonstrable experience,expertise and resources in providingconsultancy / supervisory services forproject development, financing, managementand execution or in process <strong>of</strong> executionatleast 3 Infrastructure projects <strong>of</strong> Rs 50crore or above.10No. <strong>of</strong> projects <strong>of</strong> below Rs. 50 Cr. only3-5 = 1>5 = 2No. <strong>of</strong> projects <strong>of</strong> Rs.50 Crore or above1-3 = 24-10 = 5>10 = 10No. <strong>of</strong> projects <strong>of</strong> below Rs.50 Crore onlyA3. Experience <strong>of</strong> development <strong>of</strong> industrialinfrastructure projects <strong>of</strong> Rs.50 crore oraboveA4. Experience <strong>of</strong> working with the StateGovernments and Central Government orGovernment agencies in development <strong>of</strong>infrastructure projects.B. Experience <strong>of</strong> Key Personnel 25Bl. Qualifications 1510103-5 = 2>5 = 4No. <strong>of</strong> projects <strong>of</strong> Rs.50 Crore or above1-3 = 44-10 = 10>10 = 20i) Project / Cluster Development - 5ii) Project Financing - 2iii) <strong>Textiles</strong> - 2iv) Project Engineering - 2v) Infrastructure Planning - 2vi) Skill Development - 1vii) Company Secretarial and Legal -1B2. Relevant Experience (<strong>of</strong> the key personnelin the field) Not less than 3 years’ relevantexperience 3 years - 5; 3-7 years – 8; 8 yrs & more – 1010
C. Presence in the cluster(s). 05D. Cluster Development Methodology andApproach Technical approach &methodology - 15 Work Plan – 10 Organization & Staffing - 0530Agencies, if required, has to make a presentation before the Committee and in suchevent a copy <strong>of</strong> the presentation, duly signed by the authorized signatory <strong>of</strong> theagency will be submitted in advance.60 marks and above in the Technical Bid. The <strong>Ministry</strong> will have the discretion torestrict number <strong>of</strong> financial bid to be opened (strictly in order <strong>of</strong> points scored) in casea large number <strong>of</strong> agencies secure the minimum qualifying marks. In case, thenumber <strong>of</strong> agencies qualifying happens to be less than three, Joint Secretary (MegaCluster), MOT will have discretion to relax the qualifying marks <strong>of</strong> 60 marks to makeat least three agencies to compete.The financial bids will be opened in the presence <strong>of</strong> the representatives <strong>of</strong> the agencies,with prior intimation <strong>of</strong> date & time to the agencies concerned.The agency, which scores the maximum total mark (Technical Bid + Financial Bid),will be awarded the work, subject to fulfilment <strong>of</strong> other conditions & GOI instructionsas required/applicable in such matters.VII. Pr<strong>of</strong>essional Fees:15. Release <strong>of</strong> Pr<strong>of</strong>essional fee to the CMTA for service rendered to the <strong>Ministry</strong> <strong>of</strong><strong>Textiles</strong> under the scheme will be as follows:-(a)The fee to the CMTA shall be paid as approved by the PAMC and shall be exclusive<strong>of</strong> service tax and other levies as applicable from time to time. The fee will howeverbe inclusive <strong>of</strong> all travel, accommodation and other incidental expenses incurred bythe CMTA.
(b)The project cost for the purpose <strong>of</strong> pr<strong>of</strong>essional fee payable to the CMTA would bethe cost as approved by the PAMC. The CMTA would be paid the fees on the originalproject cost as approved by the PAMC irrespective <strong>of</strong> any revision in the project costby the PAMC.(c ) The fee paid to the CMTA will be paid as per the following Schedule <strong>of</strong> Payment-Fee AmountPayment Milestone20% <strong>of</strong> Pr<strong>of</strong>ession fee On approval <strong>of</strong> Detailed Project Report and release <strong>of</strong>1 st part <strong>of</strong> 1 st instalment <strong>of</strong> Government’s grant (SPVwise)40% <strong>of</strong> pr<strong>of</strong>essional fee On release <strong>of</strong> 2 nd instalment <strong>of</strong> Government’s grant(SPV-wise)20% <strong>of</strong> pr<strong>of</strong>essional fee On release <strong>of</strong> 3 rd instalment <strong>of</strong> Government’s grant(SPV-wise)20% <strong>of</strong> pr<strong>of</strong>essional fee On completion <strong>of</strong> the Project (SPV-wise).(d)In case a CMTA does not perform as per the satisfaction <strong>of</strong> the PAMC on specificproject, the PAMC may impose penalties as decided by the PAMC on a case to casebasis.(e)In the event <strong>of</strong> cancellation <strong>of</strong> a project, on account <strong>of</strong> withdrawal by SPV or failureto implement the project as per the approved DPR, the entire/proportionate (as thecase may be) pr<strong>of</strong>essional fees released shall be refunded by the CMTA, with penalinterest equivalent to PLR.(f)In the event <strong>of</strong> CMTA not complying with direction <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> forreturn <strong>of</strong> the pr<strong>of</strong>essional fee etc., appropriate action will be taken to recover thesame as arrears <strong>of</strong> land revenue, with penal interest.
VIII. General terms and conditions <strong>of</strong> the work16. The selected Agency has to sign an Agreement with the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> forrendering satisfactory services and completion <strong>of</strong> the projects in a time bound manner. TheAgreement shall include provisions for taking performance guarantee, damages and penaltyfor delay/cancellation <strong>of</strong> the project besides other clauses as are finalized by the <strong>Ministry</strong> <strong>of</strong><strong>Textiles</strong>.IX. Project Formulation:17. The Detailed Project Report shall be formulated by CMTA though a Detailedconceptual Report after conducting a diagnostic study <strong>of</strong> the requirements <strong>of</strong> common facilityand infrastructure in the specific location and based on demand and potentiality.Attachment-III indicates the broad aspects, which may be covered in the Project Report(DPR). These are intended to be indicative and not exhaustive.X. Mode <strong>of</strong> submission <strong>of</strong> Expression <strong>of</strong> Interest/Bid18. Documents in electronic form will not be accepted. The technical proposal should besubmitted in a separate envelope marked ‘TECHNICAL PROPOSAL’. Similarly, theFinancial Proposal should be submitted in a separate envelope marked ‘FINANCIALPROPOSAL’. Both these envelops should be sealed in another envelope super-scribed as‘Proposal for appointment as CMTA for Development <strong>of</strong> Powerloom Mega Cluster at<strong>Ichalkaranji</strong> in Maharashtra’–and should be delivered at the following address before thestipulated closing time.Sh. Ishwar Sharan,Under Secretary,<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>,Room No. 54-A, Udyog Bhawan,Maulana Azad Road,New Delhi-110011.XI.Closing Time for receipt <strong>of</strong> Bids / Opening <strong>of</strong> Bids19. The closing time for submission <strong>of</strong> Technical & Financial bids is within 30 days <strong>of</strong>the date <strong>of</strong> the advertisement in newspaper. In case <strong>of</strong> last day being a holiday, the closingtime will be 1500 Hrs <strong>of</strong> the next working day.
XII.Opening <strong>of</strong> Technical Bids:20. The date <strong>of</strong> opening <strong>of</strong> Technical Bid will be conveyed in due course. Authorizedrepresentative <strong>of</strong> the Bidders may be present during the opening <strong>of</strong> the bids. The date <strong>of</strong>Presentation, if required, will be intimated separately.XIII. Opening <strong>of</strong> Financial Bids :21. The date <strong>of</strong> opening <strong>of</strong> Financial Bids will be intimated separately to eligiblebidders. Only those bidders who qualify technically will be considered eligible for financialbid opening.XIV. Rights <strong>of</strong> <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>22. The <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> reserves the right to accept/reject the EOI received withoutassigning any reasons whatsoever, or may call for any additional information / clarification ifso required.XV.Court jurisdiction23. This shall be subject to the exclusive jurisdiction <strong>of</strong> courts at Delhi / New Delhi.XVI. Miscellaneous24. In case any further clarification or information is required, the following <strong>of</strong>ficer maybe contacted:Sh. Ishwar Sharan,Under Secretary,<strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>,Room No. 54-A, Udyog Bhawan,Maulana Azad Road,New Delhi-110011. (Ph.No.23063060)E-mail:pl-textiles@nic.in*********
Attachment-I (EoI)Comprehensive Powerloom Cluster Development Scheme (CPCDS)Draft Guidelines for Ichalakaranji Powerloom Mega Cluster1. This note lays down guidelines for development <strong>of</strong> Ichalakaranji in Maharashtra asPowerloom Mega Cluster as announced by the Finance Minister in his Budget Speech2012-13. They will come into effect from the Financial Year 2012-13. The projectsthat are already sanctioned under the previous guidelines would be reviewed andrecast to fit into the modified guidelines, to the extent possible and necessary.2. Background2.1. More than 62% <strong>of</strong> the textiles production in India is done on Powerlooms, most <strong>of</strong>them being in SSI units. Out <strong>of</strong> 23 lakh registered powerlooms producing 54,000Million Sq. Mt. <strong>of</strong> cloth and accounting for 57.45 lakh number <strong>of</strong> direct/ indirectemployment, only 1.05 lakh looms are shuttleless. Off-take <strong>of</strong> powerloom sectorunder TUFS has been negligible (less than 2%). The existing looms are obsoleteand high on energy consumption, most <strong>of</strong> the units are small (4-8 looms). Thedependence <strong>of</strong> units on the master weaver or trader is high, for provision <strong>of</strong> orderswith raw-material, design and an advance on labour given by them. In this MasterWeaver Pattern <strong>of</strong> trade, the majority <strong>of</strong> units are not better than job workersthemselves, weaving cloth to order on a pick-rate basis and employing labour ondaily wage basis to run their units. In order to have cohesive development <strong>of</strong> thecluster, Government wants entrepreneurs from within the cluster to step forwardand be partners with Government in development <strong>of</strong> the cluster with wideparticipation for increased cluster pr<strong>of</strong>it.
2.2. <strong>Ichalkaranji</strong> is one <strong>of</strong> the more prominent and progressive textile activity centre insouthern part <strong>of</strong> Maharashtra. It has been identified as a sector most likely torespond positively to stimulus for technology upgradation. Powerloom Industry isan house hold activity in the city as well as surrounding villages. There are about35 Spinning Mills which produces wide range <strong>of</strong> excellent quality yarns. Here,very coarse to super fine fabrics are produced on 1.2 lakh Powerlooms, 20000 autoand semi auto looms and 6000 shuttle-less looms.Fabric processing andgarmenting units are also fulfilling the needs <strong>of</strong> the sector. This Textile activity isbeing carried out in many small scale units, Co-operative Industrial Estates andTextile Parks. The cluster has huge dedicated work force, however, it lacks basictraining facilities, skill development, adequate infrastructure support, moderntechnology, modern looms and other need based facilities like marketing facilities,etc. Accordingly, it has been decided to develop Ichalakaranji as Powerloom MegaCluster under CPCDS.3. Objectives3.1. Development <strong>of</strong> clusters that have a concentration <strong>of</strong> about 5000 decentralizedPowerlooms or more by assistance for infrastructure, common facilities, other needbased innovations, technology upgradation and skill development.3.2. It is expected that the project would ordinarily be implemented within a period <strong>of</strong> 4years from the date <strong>of</strong> formal approval conveyed by the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>.
4. Deliverables4.1 Economic advantage - Substantial Increase in Production and Export, Increase in thebusiness <strong>of</strong> small entrepreneurs, Savings in cost by manufacturers in the cluster due tobetter infrastructure and Government induced benefits, Revenue generation to localbodies, State & Central Governments and Growth <strong>of</strong> industry in an organized form.4.2 Social advantage – Better living standards for the existing weavers/ artisans andhigher per capita income.4.3 Environmental advantage – Availability <strong>of</strong> Effluent Treatment Plant & Solid WasteManagement system etc. in the cluster.5. Funding Parameters:5.1 The assistance <strong>of</strong> government <strong>of</strong> India for each approved Mega Powerloom Clusterproject would be limited to Rs. 70 cr. inclusive <strong>of</strong> administrative expenditure, M&Eand pr<strong>of</strong>essional fee. Additional funds for development <strong>of</strong> the cluster will bemobilized by dovetailing the funds available under various Schemes <strong>of</strong> state andcentral governments.5.2 The cost <strong>of</strong> land will form part <strong>of</strong> the project cost. However, Government assistancewill not be used for purchasing the land.5.3 Upto 1% (one percent) <strong>of</strong> the Government’s grant shall be made for administrativeexpenditure, evaluation, studies, research & seminars, information dissemination,publicity, and for putting in an IT enabled monitoring mechanism.5.4 Government funds will be provided as grant ordinarily, but may be considered as part<strong>of</strong> equity in CFCs or where it assists in financial closure.
5.5 Interventions will be provided directly to existing weaving units or to an SPV withprivate equity participation depending on needs <strong>of</strong> the cluster. Governmentgrant/equity would be provided with the expectation <strong>of</strong> matching investment by theindustry in the ratio <strong>of</strong> 70:30 :: Government : Private. That is Rs.70 crore bygovernment grant would be required to mobilise a matching investment <strong>of</strong> Rs.30 crorein the project, however, based on need/financial closure, the ratio may be varied withapproval <strong>of</strong> the PAMC for individual components by exercise <strong>of</strong> flexibility withinthis overall ratio <strong>of</strong> investment.6. Project Components:6.1 The following components <strong>of</strong> the project will be eligible for funding under thescheme, within the overall limit <strong>of</strong> the grant <strong>of</strong> Rs. 70 crores in the cluster:i) Common Facility Centres (CFCs) for pre and post loom weaving processing:Common Facility Centres (CFCs) would comprise <strong>of</strong> state <strong>of</strong> the art technologywhich would service users, including enterprises, who would normally not beable to access those facilities individually. Apart from the pre and post loomweaving process such as warping, sizing, dyeing, CFCcmay also includeProduct Design & Development Support Centres, Testing Laboratories, QualityBenchmark Centre [following TQM Technique), Common Captive Power Plant,Common Warehouses, Workers hostels, Common Effluent Treatment Plants,Common Marketing Centre/Mart and Exhibition Centres, etc.
ii)Mini-Industrial Parks with Worksheds supported by Core Infrastructure:The objective is to set up self-sufficient industrial estates that will provide workspace to the units within the cluster there by enabling them to expand theircapacities, apart from meeting the compliances. Each such park, not necessarilyon a contiguous piece <strong>of</strong> land, will provide need based, customized and ‘readyto use’ work sheds, factory buildings, along with need based CFCs and supportinfrastructure including required roads, compound walls, street lights, watersupply and power generation. However, aggregate investment, includinglandand plant and machinery, by the entrepreneurs in the park shall be at least 60% <strong>of</strong>the cost <strong>of</strong> common infrastructure proposed for the park.iii)Innovative Ideas and other need-based interventionsUp to 10% <strong>of</strong> the budget allocated for the scheme may be utilized towardsinnovative ideas and other need based interventions, which may emerge during thecourse <strong>of</strong> implementation <strong>of</strong> the project and might have not been incorporated inthe scheme at the time <strong>of</strong> approval.To be dovetailed with TUFS and ISDS <strong>of</strong> <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>i) Technology Upgradation: Proposals for technology upgradation should beprepared in a manner that proposals can qualify for dovetailing <strong>of</strong> fund from theTUFS automatically. Such grant from TUFS will be treated as dove tailing and notto be included in the CPCDS grant <strong>of</strong> Rs.70 crore.
ii)Skill Development: Proposals for skill development should be prepared in amanner that proposals canqualify for dovetailing <strong>of</strong> fund from the ISDSautomatically. Such grant from ISDS will be treated as dove tailing and not to beincluded in the CPCDS grant <strong>of</strong> Rs.70 crore.7. Implementation Process7.1 The following shall be the cycle <strong>of</strong> project identification, approval, execution andmonitoring process :-i) Identification <strong>of</strong> the Mega Powerloom Cluster by the <strong>Ministry</strong> which would befunded under the Scheme.ii) Appointment <strong>of</strong> Cluster Management and Technical Agency (CMTA) by the<strong>Ministry</strong> through a competitive selection process.iii)Preparation <strong>of</strong> Detailed Conceptual Report (DCR) by CMTA in consultation withpowerloom stakeholders, which would consist <strong>of</strong> a diagnostic study <strong>of</strong> the needs <strong>of</strong>the cluster, identification <strong>of</strong> interventions, tentative requirement <strong>of</strong> land, if any,approximate cost <strong>of</strong> interventions, approximate total cost,and formulation <strong>of</strong>implementation strategy.iv)Discussion with the Cluster Co-ordination Group (CCG) and on its endorsement,approval <strong>of</strong> the Detailed Conceptual Report (DCR) by <strong>Ministry</strong>.v) Selection <strong>of</strong> SPV for the identified interventions as per the DCR. The process will beundertaken by CMTA through a widely published process.
vi)Preparation and submission <strong>of</strong> Detailed Project Reports (DPRs) for the identifiedinterventions, by the CMTAin consultation with SPVs. Such DPRs shall covertechnical, financial, institutional and implementation aspects, in line with theDetailed Conceptual Report (DCR) prepared by the CMTA.vii)viii)ix)Endorsement <strong>of</strong> the DPRs by CCG and recommendations to EFC/ PAMC.Approval <strong>of</strong> the projects by EFC/PAMC.Creation <strong>of</strong> separate account by SPV for the funds for the project. First release onevidence <strong>of</strong> readiness for execution <strong>of</strong> the projects by the SPV as per the approvedDPRs.x) Monitoring <strong>of</strong> the execution process <strong>of</strong> SPV by the CMTA.xi)Release <strong>of</strong> funds to the SPV by the <strong>Ministry</strong> as per the guidelines and oncertification by the CMTA.xii)xiii)xiv)Quarterly progress reports to the <strong>Ministry</strong> by SPV/CMTA.Submission <strong>of</strong> utilization certificates and closure <strong>of</strong> the projectsMid-term and end <strong>of</strong> the term monitoring and impact assessment studies by the<strong>Ministry</strong> through qualified independent institutions.7.2 The general constitution/role/ services <strong>of</strong> CMTA, SPV, State Governments, CCG andPAMC are given at Annexure I to V.
8. Release <strong>of</strong> Funds:8.1 The following shall be the process/conditions for release <strong>of</strong> grant by the <strong>Ministry</strong>:I. The release <strong>of</strong> funds would be specific to different interventions <strong>of</strong> the cluster.All releases to be made to an escrow account for the project opened by the SPVs.II. The grant by the <strong>Ministry</strong> will be released in the following manner to the SPVs :(1) First installment <strong>of</strong> 30% <strong>of</strong> the total Government <strong>of</strong> India (GOI) share shall bereleased in two parts:-(a)First part <strong>of</strong> First installment representing 10% <strong>of</strong> total GoI share will be paid tothe SPVs subject to fulfillment <strong>of</strong> following criteria:(i)Establishment <strong>of</strong> SPV.(ii) Inclusion <strong>of</strong> one representative <strong>of</strong> Government <strong>of</strong> India and onerepresentative <strong>of</strong> the CMTA on the Board <strong>of</strong> Directors.(iii)Where land is required for the project, land has to be in the possession <strong>of</strong>SPV. That is land should have either been purchased by the SPV andconsequently registered in the name <strong>of</strong> the SPV or the SPV should have aentered into a registered long term lease.(iv)Execution <strong>of</strong> share holders’ agreement showing agreement for issuance <strong>of</strong>shares by SPV to members in proportion <strong>of</strong> area allocable to them inequity contribution.(v)(vi)(vii)Establishment <strong>of</strong> escrow account in a nationalized bank.DPRs duly validated by CMTA, and approved by EFC/PAMC.Availability <strong>of</strong> all statutory clearance necessary for commencement <strong>of</strong> theproject as certified by the CMTA, including environment, water andelectricity.
(b) Second part <strong>of</strong> First installment representing 20% <strong>of</strong> the total GOI share willbe paid to the SPV subject to fulfillment <strong>of</strong> following criteria:(i)(ii)(iii)On submission <strong>of</strong> Utilisation Certificate for 70 % <strong>of</strong> the first part <strong>of</strong> firstInstallment released and on producing evidence <strong>of</strong> deposit <strong>of</strong> 1/3 rd <strong>of</strong>investor’s share in the escrow account. Utilization Certificate in GFR19(A) and Audited Statement <strong>of</strong> Accounts by the Chartered Accountantare required to be furnished.Details <strong>of</strong> equity contribution by SPV.Sanction Letter for loan component showing satisfactory financial closure,in case SPV is taking term loans.(iv)Award <strong>of</strong> contracts worth equivalent at least 50% <strong>of</strong> the total project costexcluding the land cost.(2) Second Installment <strong>of</strong> 30% <strong>of</strong> the total GOI share will be released:(i)On utilization <strong>of</strong> remaining 30% <strong>of</strong> grant amount <strong>of</strong> first part <strong>of</strong> firstinstallment and on utilization <strong>of</strong> at-least70 % <strong>of</strong> the grant amount <strong>of</strong>second part <strong>of</strong> first Installment by the SPV and on utilization <strong>of</strong> investor’sshare deposited at the time <strong>of</strong> release <strong>of</strong> 2 nd part <strong>of</strong> first installment ; and(ii)On production <strong>of</strong> evidence <strong>of</strong> deposit <strong>of</strong> another 1/3 rd <strong>of</strong> the investor’sshare in escrow account.(iii) Utilization Certificates in GFR 19(A) and Audited Statement <strong>of</strong> Accountsby the Chartered Accountant as above shall be submitted by the SPV at thetime <strong>of</strong> making claim for the 2 nd Installment.(3) Third Installment <strong>of</strong> 30% <strong>of</strong> the total GOI share after:(i)On utilization <strong>of</strong> remaining 30% <strong>of</strong> grant amount <strong>of</strong> second part <strong>of</strong> firstinstallment and on utilization <strong>of</strong> at-least70 % <strong>of</strong> the grant amount <strong>of</strong>second Installment by the SPV and on utilization <strong>of</strong> investor’s sharedeposited at the time <strong>of</strong> release <strong>of</strong> second installment ; and
(ii)Evidence <strong>of</strong> deposit <strong>of</strong> the remaining one third <strong>of</strong> the investor’s share inthe escrow account.(iii)Award <strong>of</strong> contracts worth equivalent to remaining 50% <strong>of</strong> the totalproject cost excluding the land cost.(iv)Utilization Certificates in GFR 19(A) and Audited Statement <strong>of</strong> Accountsby the Chartered Accountant as above shall be submitted by the SPV at thetime <strong>of</strong> making claim for the 3 rdInstallment.(v)As against 90% release <strong>of</strong> Government <strong>of</strong> India funds, the SPV shouldhave contributed their 100%.(4) Fourth Installment <strong>of</strong> 10% <strong>of</strong> the total GoI share will be released afteroperationalization <strong>of</strong> the project and on utilization <strong>of</strong> remaining 30% <strong>of</strong> grantamount <strong>of</strong> second installment and full utilization <strong>of</strong> the third installment <strong>of</strong> grantand on utilization <strong>of</strong> 100% <strong>of</strong> the investor’s share. Utilization Certificates in GFR19(A) and Audited Statement <strong>of</strong> Accounts by the Chartered Accountant as aboveshall be submitted by the SPV at the time <strong>of</strong> making claim for the 4 th Installment.{Note: SPV’s share means own contribution/investment by SPVs and termsloan/bank loan etc. (other than MOT’s grant under CPCDS). Any variation fromthe aforesaid prescribed guidelines will require specific approval <strong>of</strong> PAMC}.9. Performance guarantee9.1 Any revision in the period <strong>of</strong> implementation must have the approval <strong>of</strong> the PAMC. Incase <strong>of</strong> delay in implementation <strong>of</strong> the project beyond the agreed time schedule asapproved by the PAMC, the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> shall have the right to imposepenalties as follows:(i)Delay <strong>of</strong> upto 3 months in the completion <strong>of</strong> the project would reduce the grantamount by 1%.
(ii)Further delay in the implementation <strong>of</strong> the project would reduce the grant amountby an additional 1% for every 3 months <strong>of</strong> delay.(iii)In event <strong>of</strong> the grant amount being reduced as above, the SPV should meet theconsequent gap through its own sources.(iv)If the SPV fails to honour commitments made in the approved DPR or it is foundthat the Grant has been utilized by the SPV for non eligible components <strong>of</strong> theproject, MOT shall have the right to levy penalties on the SPV as may be decidedby the PAMC.(v)In the event the project is cancelled by the PAMC, then the SPV shall refund theGrant amount with interest at Bank rate from the date <strong>of</strong> receipt.(vi)In the event <strong>of</strong> SPV not complying with direction <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> forreturn <strong>of</strong> the grant, appropriate action will be taken to recover the grant etc. asarrears <strong>of</strong> land revenue, with penal interest.(vii)The decision <strong>of</strong> the PAMC in all above cases would be final and binding on theSPV under the scheme.10. Pr<strong>of</strong>essional Fee to be paid to CMTA:10.1 Release <strong>of</strong> Pr<strong>of</strong>essional fee to the CMTA for service rendered to the <strong>Ministry</strong> <strong>of</strong><strong>Textiles</strong> under the scheme will be as follows:-(a) The fee to the CMTA shall be paid as approved by the PAMC and shall be exclusive<strong>of</strong> service tax and other levies as applicable from time to time. The fee will howeverbe inclusive <strong>of</strong> all travel, accommodation and other incidental expenses incurred bythe CMTA.
(b)The project cost for the purpose <strong>of</strong> pr<strong>of</strong>essional fee payable to the CMTA would bethe cost as approved by the PAMC. The CMTA would be paid the fees on the originalproject cost as approved by the PAMC irrespective <strong>of</strong> any revision in the project costby the PAMC.(c ) The fee paid to the CMTA will be paid as per the following Schedule <strong>of</strong> Payment-Fee AmountPayment Milestone20% <strong>of</strong> Pr<strong>of</strong>ession fee On approval <strong>of</strong> Detailed Project Report and release <strong>of</strong>1 st part <strong>of</strong> 1 st instalment <strong>of</strong> Government’s grant (SPVwise)40% <strong>of</strong> pr<strong>of</strong>essional fee On release <strong>of</strong> 2 nd instalment <strong>of</strong> Government’s grant(SPV-wise)20% <strong>of</strong> pr<strong>of</strong>essional fee On release <strong>of</strong> 3 rd instalment <strong>of</strong> Government’s grant(SPV-wise)20% <strong>of</strong> pr<strong>of</strong>essional fee On completion <strong>of</strong> the Project (SPV-wise).(d)In case a CMTA does not perform as per the satisfaction <strong>of</strong> the PAMC on specific project,the PAMC may impose penalties as decided by the PAMC on a case to case basis.(e)In the event <strong>of</strong> cancellation <strong>of</strong> a project, on account <strong>of</strong> withdrawal by SPV or failureto implement the project as per the approved DPR, the entire/proportionate (as thecase may be) pr<strong>of</strong>essional fees released shall be refunded by the CMTA, withinterest equivalent to PLR.(f)In the event <strong>of</strong> CMTA not complying with direction <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> forreturn <strong>of</strong> the pr<strong>of</strong>essional fee etc., appropriate action will be taken to recover thesame as arrears <strong>of</strong> land revenue, with penal interest.11. Misc.11.1 CMTA and SPVs shall enter into appropriate Agreements with the <strong>Ministry</strong> <strong>of</strong><strong>Textiles</strong> for implementation/execution <strong>of</strong> the project.
11.2 In so far as interpretation <strong>of</strong> any <strong>of</strong> the provisions <strong>of</strong> these guidelines, the decision <strong>of</strong>the Project Approval and Monitoring Committee shall be final. The PAMC is alsoempowered to put in place detailed operating procedure and supplementary rules andguidelines for implementation <strong>of</strong> the scheme.****
ANNEXURE –I (Guidelines)CONSTITUTION/ROLE/SERVICES OF CLUSTER MANAGEMENT TECHNICALAGENCY (CMTA)i) The nature <strong>of</strong> the proposed project warrants proactive technical and managerialassistance on "concept" to "commissioning" basis, and therefore the services <strong>of</strong> apr<strong>of</strong>essional agency (selected through competitive bidding system) will be utilizedby the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> as CMTA for each <strong>of</strong> the CPCDS projects.ii)Such agency shall have proven capability in terms <strong>of</strong> technical, managerial,financial infrastructure and capacity building expertise that are required to designand execute cluster oriented interventions, and knowledge <strong>of</strong> the Textile Sector.iii)CMTA, apart from assisting the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> in designing and monitoring <strong>of</strong>the project, will proactively work with the cluster stakeholders and the SPV. Theillustrative list <strong>of</strong> responsibilities <strong>of</strong> such CMTA are given below:Preparation <strong>of</strong> Detailed Conceptual Report(DCR) covering diagnostic study <strong>of</strong> thecluster, identification <strong>of</strong> interventions and preparation <strong>of</strong> implementation strategy indialogue and with due consultation <strong>of</strong> cluster and sector stakeholders.Sensitizing and mobilizing the stakeholders to be part <strong>of</strong> the proposed interventionsand identifying from amongst the stakeholders persons or units for establishment <strong>of</strong>SPV(s).Establishment and structuring <strong>of</strong> the SPV through a widely published process.On approval <strong>of</strong> DCR by the <strong>Ministry</strong> after consultation with CCG, CMTA willprepare the DPR in consultation with SPV.
Assisting the SPV in identifying suitable land, where required.Assisting the SPV(s) in obtaining requisite statutory approvals /clearances.Assisting the <strong>Ministry</strong> in releasing funds for the project to the implementingagencies.Assisting the SPVs in identifying appropriate grant schemes in the State or CentralGovernment from funds can be dovetailed to the project.Assisting SPVs in obtaining Financial Closure. Assisting the SPV(s) in identification and engagement <strong>of</strong> serviceproviders/contractors for various services required for preparation <strong>of</strong> DPR andimplementation <strong>of</strong> components under such DPR.Providing interfacing support and linkages between the SPV(s) and various otherstakeholders, particularly the Government organizations, buyers and financialinstitutions.Providing periodical progress reports to the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> with respect toachievements <strong>of</strong> the stated outcomes.Maintaining the progress and growth <strong>of</strong> the SPV and the project for the <strong>Ministry</strong> fora period <strong>of</strong> 3 years after completion and submission <strong>of</strong> diagnostic reports that wouldprovide a feedback to the <strong>Ministry</strong> on the impact <strong>of</strong> the scheme as well as possiblecorrection to the guidelines.iv)In case a CMTA does not perform as per the satisfaction <strong>of</strong> the PAMC on specificproject, the PAMC may impose penalties as decided by the PAMC on a case to casebasis.
v) In the event <strong>of</strong> cancellation <strong>of</strong> a project, on account <strong>of</strong> withdrawal by SPV or failure toimplement the project as per the approved DPR, the entire/proportionate (as the casemay be) pr<strong>of</strong>essional fees released shall be refunded by the CMTA, with penal interestequivalent to PLR.vi)In the event <strong>of</strong> CMTA not complying with direction <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> forreturn <strong>of</strong> the pr<strong>of</strong>essional fee etc., appropriate action will be taken to recover the sameas arrears <strong>of</strong> land revenue, with penal interest..****
ANNEXURE –II (Guidelines)CONSTITUTION/ROLE/RESPONSIBILITES OF SPECIAL PURPOSE VEHICLES(SPVS)i) The Scheme would be executed through one or more Special Purpose Vehicles(SPVs) that comprises the cluster stakeholders. Such a SPV would need to be alegal entity, which can either be constituted for the purpose <strong>of</strong> the project (SpecialPurpose Vehicle - SPV), in the form <strong>of</strong> a Company/Producer Company or Societyunder the relevant laws or an already existing registered entity. Any differentstructure for the SPV requires the approval <strong>of</strong> PAMC. The SPVs shall haveoperational autonomy so that they do not become surrogate Public SectorEnterprises or be controlled by Central /State Governments.ii)The CMTA would select SPVs through a selection process/criterion to be gotapproved by the <strong>Ministry</strong>.iii)The majority <strong>of</strong> the equity <strong>of</strong> such SPV shall be with the weavers <strong>of</strong> the cluster and/or their associations/cooperatives /federations/MSME units. The remaining stakemay be held by strategic investors. The stake <strong>of</strong> any individual enterprise in itssubsidiaries shall not be more than 26%.iv)The roles and responsibilities <strong>of</strong> such SPV(s) shall be as follows:Identification and designing <strong>of</strong> interventions in consultation with the clusterstakeholders. Assist CMTA for preparation and submission <strong>of</strong> DPR each <strong>of</strong> the relevantcomponents.Procurement <strong>of</strong> land, wherever needed.Obtaining the equity shares as per SPV Agreement and allocating sharesaccordingly.Securing financial closure to ensure availability <strong>of</strong> investable funds for the project.
Opening and maintaining separate accounts for the investments for the project, forgovernment grant and share holders equity and investment.Appointment <strong>of</strong> service providers and contractors through competitive andtransparent selection process.If benefits other schemes are dovetailed with the project, taking necessary action toobtain the funds and dovetail the benefits.Execution <strong>of</strong> the components as per the approved DPR.Ownership and maintenance <strong>of</strong> facilities createdProviding periodical progress reports, utilization certificates and compliance to allrelated provisions and requirements <strong>of</strong> the Scheme and relevant statutory provisions.Receiving Government grant and matching investment share as per guidelines,submitting all relevant document alongwith their claim to <strong>Ministry</strong> through CMTAwith their certification and recommendation for release. Operationlization <strong>of</strong> the project as per DPR .In the event <strong>of</strong> cancellation <strong>of</strong> a project by PAMC due to failure on part <strong>of</strong> SPV toimplement the project as per the approved DPR after government grant is released oron account <strong>of</strong> withdrawal by SPV after Government grant is released, the entiregrant released shall be refunded by the SPV, interest equivalent to PLR or as to bedecided by the PAMC/<strong>Ministry</strong>.In the event <strong>of</strong> SPV not complying with direction <strong>of</strong> the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> forreturn <strong>of</strong> the grant etc., appropriate action will be taken to recover the grant etc. asarrears <strong>of</strong> land revenue with penal interest.**
ANNEXURE-III (Guidelines)ROLE OF STATE GOVERNMENTThe State Government is expected to play very important facilitating role for successfulexecution <strong>of</strong> the project as envisaged below:i) Facilitating in obtaining all the requisite clearances related to land, environment, etc.ii)Providing necessary external infrastructure like Power, Water, etc.iii)Facilitating in identification and provision <strong>of</strong> suitable land.iv)Financial assistance as grant, in addition to the Central Government grant, and/orparticipation in equity through State Government Agenciesv) Providing incentives as per the industrial policyvi)Dovetailing <strong>of</strong> other related Schemes for overall effectiveness and efficiency <strong>of</strong> theinterventions.
ANNEXURE –IV(Guidelines)ROLE OF CLUSTER COORDINATION GROUP(CCG)i) In order to ensure an effective coordination amongst various stakeholders and theSPV(s) at cluster level, a Cluster Coordination Group (CCG) would be set up under theChairmanship <strong>of</strong> the respective District Collector. This CCG would be responsible toexamine the DCR submitted by CMTA and will make its recommendations to<strong>Ministry</strong>. CCG will also responsible for local coordination and regular review <strong>of</strong>implementation <strong>of</strong> the Scheme at cluster level. The CCG would meet at least once in 6months.ii)The members <strong>of</strong> the CCG would represent the following: GM-DIC. The Chairperson(s) <strong>of</strong> SPV(s) The Chairpersons <strong>of</strong> the Industry Associations related to the cluster Representatives <strong>of</strong> the State Government Departments such as Industries, <strong>Textiles</strong>,Power, Water Supply, etc. Representatives <strong>of</strong> the related Central Government Organisation like PowerloomExport Development Council, Textile Research Associations, etc. Representative <strong>of</strong> CMTA An Officer nominated by the Textile Commissioner shall be the convener <strong>of</strong> CCG.****
ANNEXURE –V (Guidelines)CONSTITUTION, ROLE AND FUNCTIONS OF PROJECT APPROVAL ANDMONITORING COMMITTEE (PAMC)In order to approve and monitor the projects sanctioned under the Scheme, a high levelcommittee in the name <strong>of</strong> Project Approval and Monitoring Committee (PAMC) would beconstituted with the following composition:i) Secretary (<strong>Textiles</strong>) – Chairmanii)iii)iv)Additional Secretary & FA, <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>. – MemberAdvisor (Industry), Planning Commission – MemberJoint Secretary (PF-II), D/o Expenditure – Memberv) Representatives <strong>of</strong> other Ministries/Departments-Membervi)vii)viii)Textile Commissioner, <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>-MemberRepresentative <strong>of</strong> the concerned State Government-MemberJoint Secretary (Mega Cluster), M/o <strong>Textiles</strong> – Member SecretaryThe PAMC shall consider the proposal along with DPR (or project plan) received throughCMTA on various component <strong>of</strong> the projects to be implemented throughSPVs/ImplementingAgencies proposed. The detailed project report (DPR) shall beconsidered and sanctioned by the PAMC. The implementation <strong>of</strong> the various projectsshould also be reviewed periodically by the PAMC.***
Attachment-II (EoI)Scope <strong>of</strong> Services for Cluster Management and Technical Agency (CMTA)under the Comprehensive Powerloom Cluster Development Scheme (CPCDS)Scope <strong>of</strong> Work by the CMTA: CMTA to assist the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> (MOT) inidentification, funding and execution <strong>of</strong> the mega cluster and shall, inter alia, provide thefollowing services:a) Project Identification: To identify the potential entrepreneurs, sensitise and mobilisethem to participate in the process <strong>of</strong> development <strong>of</strong> the cluster(s). Extensiveresearch should be made to clearly identify the need based interventionsrequired for individual weavers/small group <strong>of</strong> weaver.This would involve the following:a. Demand assessmentb. Sensitizing and mobilizing the potential entrepreneursc. Pr<strong>of</strong>iling the entrepreneurs/stakeholders willing to set up the Mega cluster.(Detailed Conceptual Report (DCR) including DSR by CMTA)b) Establishment and Structuring <strong>of</strong> Special Purpose Vehicle (SPV)/ImplementingAgency: To ensure that the identified entrepreneurs establish suitable Project SPV/IAin order to provide institutional framework conducive for execution <strong>of</strong> the proposedMega cluster.Establishment <strong>of</strong> SPV would include the following elements:a. Drafting the Company Share Holders Agreementb. Structuring the share holding patternc. Drafting the subscribers agreement (Agreements between the SPV and themember entrepreneurs)d. Facilitating the registration <strong>of</strong> the SPVs/IA with the Registrar <strong>of</strong>Companies/concerned authorities.c) Identification <strong>of</strong> Location: To assist the Project SPV in identification <strong>of</strong> locationsuitable to the proposed project for setting up the Mega Cluster(s) based on ascientific assessment <strong>of</strong> the demand and potential <strong>of</strong> the area.This would involve the following:i. Assessing the suitability <strong>of</strong> various sites for setting up the Cluster withrespect to various criterion such as connectivity, effluent treatment,availability <strong>of</strong> water and power etc;ii. Assisting the SPVs in liaison with the concerned government agencies forobtaining the land.
d) Preparation <strong>of</strong> Project Report: CMTA, in consultation with SPVs will preparebankable Detailed Project Report (DPR), for the identified Cluster that meets thefunding requirements <strong>of</strong> MOT and the financial institutions. CMTA would apprise theDPR and submit with recommendation to <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong>. Such DPR wouldconsist <strong>of</strong> all essential features related to physical, technical, financial, environmentaland institutional aspects <strong>of</strong> the project. Project Plan would also include standards foreach component <strong>of</strong> infrastructure and detailed estimates, which shall be based on theCPWD schedule <strong>of</strong> rates and/ or market rates.Such preparation <strong>of</strong> bankable DPR would involve the following:i. Physical Planning & engineering related: Conducting the topographicsurveys <strong>of</strong> the identified land, land use planning, infrastructure lay out,location <strong>of</strong> common facilities particularly with respect to effluent treatment& disposal, design <strong>of</strong> typical units/ cross sections to arrive at the costs, etc.ii. Technical related: The details related to textile production, plant &machinery etc.iii. Environmental related: Environmental Impact Assessment and theEnvironmental Management Systems, including the proposed technologiesand the systems for effluent treatment and dischargeiv. Financial Related: Estimated cost <strong>of</strong> the project-component wise, means <strong>of</strong>financing - equity, grants and debts, financial analysis <strong>of</strong> the project toassess its viability and other related aspectsv. Institutional/organizational related: The organisational structure, mode <strong>of</strong>implementation, time frame, O&M plan including user fee related and otheraspectse) Financial Closure: CMTA would assist Project SPV to achieve financial closure forthe project to enable the execution <strong>of</strong> the project. To assist Project SPV in designingthe funding plan- debt, equity, grant etc - for the project so that means <strong>of</strong> finance areclearly identified.f) Project Appraisal: CMTA would appraise the projects and submit the same forconsideration <strong>of</strong> Project Approval & Monitoring Committee (PAMC).g) Statutory Approvals: CMTA would assist the Project SPV in obtaining all necessarystatutory approvals/clearances including environmental clearances, which areprerequisite to commencement <strong>of</strong> the project. CMTA would also liaise with the StateGovernments to resolve issues related with the State Government.
This would involve the following:i. Undertaking the Environment Impact Assessment (EIA)ii. Filing the applications with the Pollution Control Boards for obtaining theConsent To Establish and Environmental Clearancesiii. Filing applications for obtaining approval from Town & Country PlanningOrganisationiv. Other approvals such as Municipal Corporation, Airports Authority etc,based on the need.Liaison with the State Government agencies: CMTA would assist the SPVs inobtaining the connections for utilities, such asi. Powerii. Wateriii. Approach Roadsh) Financial Advisory Services: CMTA would provide need based financial advisoryservices to the MOT with regard to implementation <strong>of</strong> the scheme for Cluster(s), ingeneral, and release <strong>of</strong> funds to the Project SPVs for establishment <strong>of</strong> Cluster(s), inparticular. CMTA would also ensure proper utilization <strong>of</strong> funds for the purposes forwhich they are sanctioned.i) Monitoring & Evaluation: CMTA would monitor the progress <strong>of</strong> sanctioned Clusterprojects and submit periodical progress reports to the MOT. CMTA would alsomonitor and oversee the work output <strong>of</strong> the contractors firms in compliance <strong>of</strong> theterms and conditions <strong>of</strong> the contracts with the objective <strong>of</strong> ensuring quality,completeness and compatibility <strong>of</strong> the work carried out.j) Timely Completion <strong>of</strong> the Project: CMTA would ensure timely completion <strong>of</strong>project(s) as per the time frames fixed by the PAMC. During the various stages <strong>of</strong>implementation <strong>of</strong> the project, CMTA would record the measurements <strong>of</strong> works done.k) Quality Control and measurement: CMTA would ensure Quality control tests andsoundness <strong>of</strong> construction & structural stability. CMTA would also ensurerectification <strong>of</strong> defects in the works notified during the defect liability period <strong>of</strong> oneyear after completion.l) Detailed engineering/procurement process: CMTA would prepare suitable formatsso as to assist the SPVs in undertaking engineering/ procurement processes. This willinclude layout design, detailed engineering drawings, preparation <strong>of</strong> cost estimates,bid documents, selection and appointment <strong>of</strong> contractors for specific activities forsmooth implementation <strong>of</strong> the project. CMTA would also advise and assist the SPVfor setting up operation & maintenance mechanisms that are aimed at minimizingproject costs.Note:Above indicates the broad aspects, which may be covered in the Project Report. Theseare intended to be indicative and not exhaustive.
Attachment – III (EoI)Indicative list <strong>of</strong> points to be covered in the Project Reports under the ComprehensivePowerloom Cluster Development Scheme (CPCDS).1. Overview:i) Brief objectives and compatibility <strong>of</strong> the proposal with objectives.ii) Justification for the proposal and suitability <strong>of</strong> location, volume <strong>of</strong> existingactivities and other schemes (State/Central/CSS) in the vicinity or at the samelocation.iii) Present Status:- Availability <strong>of</strong> land & status <strong>of</strong> acquisitions.- Availability <strong>of</strong> requisite clearances.- Identification, agreement/MoU with beneficiary units.2. Total cost <strong>of</strong> the project with break-up for major facilities.3. Base date and basis <strong>of</strong> estimating the cost.4. Mode <strong>of</strong> funding & Phasing <strong>of</strong> expenditure i.e. contribution <strong>of</strong> various stake holders,(GOI, State Govt. & Other Agencies). Before submission <strong>of</strong> DPR involvingavailing finance/loan/grant etc. from other sources i.e. from other Schemes <strong>of</strong>the <strong>Ministry</strong> <strong>of</strong> <strong>Textiles</strong> or other Departments/Ministries/Bank or FinancialInstitutions etc., a feasibility study with concerned department/Minstry/Banketc. should invariably be made to ascertain that grant/loan etc. is/are likely to beavailable and conditions required for the same can be fulfilled.5. Land requirement and its distribution (Facility-wise)6. Physical facilities being planned – capacities: backward & forward linkages.7. Name <strong>of</strong> the Implementing & Managing Agency/SPV, brief indication onresponsibilities/obligation (during implementation and future).8. Gestation period, activity chart (PERT/CPM), major milestones/targets and date <strong>of</strong>commencement <strong>of</strong> operation.
9. Quantification <strong>of</strong> benefits in terms <strong>of</strong> increase in production, employment, exportsand investments.10. Sustainability issues: Projected O&M expenditure & means <strong>of</strong> meeting the same.11. Financial viability to the extent applicable:- Projected annual surplus, if any.- Internal Rate <strong>of</strong> Return (IRR).- Percentage <strong>of</strong> occupancy to achieve viability.12. A synopsis <strong>of</strong> the discussions held with various Stake Holders.13. Master Plan <strong>of</strong> the area, mapping the components for which the assistance is beingsought and as to how the other components are to be addressed.14. Background about the implementing agency, and their experience in handling suchprojects.***