Approval letter for CEFC at TAGMA

No. 121 10/2014- HE&MT
Government of India
Ministry of Heavy Industries & Public Enterprises
Department of Heavy Industry
Udyog Bhavan,
New Delhi
II-,
Dated 12. November, 2015
To
The Director,
TAGMA Centre of Excellence and Training (TCET),
A-33, Nand Jyot Industrial Estate,
Andheri Kurla Road,
Safed Pool,
Mumbai - 400 072
Subject:
Proposal from Tool and Gauge Manufacturers Association of India (TAGMA) for
setting up of Common Engineering Facilities Centre (CEFC) at Chakan, Pune under
the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector Approval thereof.
Sir,
I am directed to refer to the proposal of TAGMA dated 9th December, 2014 seeking
grant- in- aid for setting up of Common Engineering Facilities Centre (CEFC) at Chakan, Pune
under the Department of Heavy Industry's Scheme on "Enhancement of Competitiveness in the
Indian Capital Goods Sector" notified on 5.11.2014 and to say that the approval of the competent
authority to the proposal, subject to certain conditions, was conveyed to TAGMA vide this
Department's letter No. 121 1/2014- HE&MT dated 22.1.2015. Consequent upon confirmation
of TAGMA vide letter
dated s" September, 2015 on acquisition ofland by the SPY floated
by TAGMA, namely TAGMA Centre of Excellence and Training (TCET) from Maharashtra
Industrial Development Corporation vide MIDC letter No. MIDCI RO (ROP)! CHK- III LMS-I
983 3607 dated 4.8.2015, detailed terms and conditions of grant in aid for the above project as
indicated in Annexure I to this letter, are hereby conveyed to you.
2.
You are requested to formally intimate your acceptance of provisions laid out in this
approval letter and express your willingness to be bound by terms and conditions mentioned in
the Annexure - I to this letter. You may note that your acceptance of this letter along with terms
and conditions will be legally binding on you.
3.
You.will have to sign a MoU with Department of Heavy Industry after your acceptance
of this letter. You are also required to submit bank mandate as required to register you as a
recipient under pfms.nic.in, pre-receipt etc. for release of the first instalment of grant.
Yours faithfully
~
CD.K. Mukherj ee)
Under Secretary CHE&MT)
,
'.;
,r.vI
:I
Annexure
-I
Terms and Conditions of approval of the project for setting up Common Engineering
Facilities Centre (CEFC) at Chakan, Pune under the Scheme on Enhancement of
Competitiveness in the Indian Capital Goods Sector notified by the Department of Heavy
Industry in Part I Section I of the Gazette of India (extraordinary) dated 05-11-2014 (hereinafter
referred to as the CG Scheme) under the component of Common Engineering Facility Centres
are indicated below in the succeeding paragraphs.
2
PROJECT
SCHEDULE
2.1
The work on setting up of CEFC shall commence from the date of release of the first
instalment of the fund by the Government of India and shall be completed within one year of
receipt of the first instalment of the DBI budgetary support.
2.2
Major milestones in terms of resource allocations (expenditure) are listed as under:
Months (M)
Land
BuildinQs
Utilities
Machinery
Vehicle
&
Books
Continqencv
PreOperatives
IDC
Margin
Money
for
M1
435.6
M2
Total
435,6
--
--
73.3
----
----
M3
.73.3
M7
--
--
--
73.3
73.3
73.3
--
--
---
--
360,1
--
--
--
--
21.7
13.7
--
3.7
3.7
2,3
2,3
o.s
M6
--
--
--
M5
73.3
--
0,0
M4
1,8
3.7
2.3
2,7
3.7
2,3
3,6
--
--
--
--
80.2
81.1
81.9
82.8
M8
M9
M10
M11
---
(Rs
M12
in lakh)
Total
435.6
733.0
·75.0
--
--
293.2
--
---
811,7
30,0
268,8
15,0
663,6
30,0
11,800
--
--
--
--
35,0
36,8
23,2
55,6
34,8
60,5
38,1
14,9
9.4
2,5
1,6
21,8
13.7
228.6
143.7
8,0
--
--
3284.2
35.0
14,2
16,0
16.7
16.7
--
--
--
--
--
--
17.2
153.8
102.9
153.8
473,9
805.0
1209.5
1324.6
339.9
70.8
206.5
5191.8
5,1
we
3.
OUTPUT
3.1
In case of the Scheme component Common Engineering Facilities Centre, facilities set up
for use by the Industry will be considered as output.
3.2
Physical & Financial Targets:
Physical
Year
•
•
2015-16
•
•
•
Project Cost
Targets
Land
Buildings (Design to Commissioning)
Machinery (Pre-Order and
Procurement)
Pre-Operatives
'.
IDC
Rs. 2040.6 lakh including
Rs,1 023.70 lakh for
Machinery
,
<.
•
•
2016-17
•
Utilities
Machinery (Procurement & Installation)
Vehicle & Books
Pre-Operatives .
•
IDC
•
Working Capital
•
Total Project Cost
Rs. 3151.2 lakh including
Rs.2260.50 lakh for
Machinery
Rs. 5191.80 lakh
including RS.3284.20 lakh
for Machinery
3.3
A Project Summary is attached at Appendix' A'. Implementation Schedule of the Project
is attached at Appendix 'B'.
4.
MODE OF FINANCING
4.1
The Machinery component of the project cost will be jointly funded by the Department
of Heavy Industry, Ministry of Heavy Industries & Public Enterprises, Government of India
(DHI) and the TAGMA Centre of Excellence and Training (TCET) in the ratio 80:20 without
violating any condition of the Scheme / GOl Rules. Total cost of Machinery to be installed is
RS.32.84 crore. DHI funding will be limited to Rs.26.27 crore.
4.2
Funds will be released by DHI in the designated Project Account on pro rata basis after
receiving confirmation of contributions by other funding partners. Release of fund will be subject
to fulfilment of terms and conditions of this approval letter, paragraphs 8 and 12 of the Gazette
Notification dated 5.11.2014 and relevant Government order/ General Financial Rules,
particularly Rules 206- 212 and 215(3) of GFR.
4.3
DHI Budgetary grant will be released in two instalments, one each in a financial year.
Utilization of budgetary grant will be subject to and in compliance of tenus and conditions of the
Sanction Letter.
4.4
Release of 1st instalment of funds shall be arranged by DHI after signing of an MoU by
the Grantee Organisation and after due confirmation of fulfilment of the commitment by the
Industrial Partners to the Project, as per financial target indicated above. Pre-receipted bills will
be submitted, prior to release of fund.
4.5
In addition to the terms & conditions mentioned in paragraph 4.2 above, release of
subsequent instalments of funds by DHI will be subject to satisfactory progress of the project
measured by Project Schedule and satisfactory utilization ofthe fund already released.
5.
FINANCIAL
& FUNDING
PARAMETERS
OF THE PROJECT
5.1
Machinery component of this project is partly funded by DBI under the CG scheme
through grant in aid as indicated in paragraph 4.1 above. The total approved financial outlay of
Machinery component of the project as per approved proposal is Rs.32.8.4 crore (Rupees Thirty
Two Crore and Eighty Four Lakh only). This is the toted cost of the machinery and equipment to
be installed in the CEFC. The grant - in- aid should be utilized for the purpose of CEFC only.
Utilization of the grant- in- aid would result in achievement of the following quantitative and
qualitative targets:
Output wise break-up of the total project cost
(Rs in lakh)
Targets
Year
Land
201516
435.6 .
Buildings
Utilities
439.8
--
with Expenditure
Heads
V&B*
PreOps
IOC*
WC'
Cent"
Total
1023.7
--
46.1
22.1
--
73.3
2040.6
Machinery
201617
--
293.2
75.0
2260.5
35.0
97.6
80.8
153.8
155.3
3151.2
Total
435.6
733.0
75.0'
3284.2
35.0
143.7
102.9
153.8
228.6
5191.8
* Note:
V&B= Vehicle and Books, WC= Working Capital, Cont. = Contingencies
5.2
Cost of Machinery and Equipment
s.
No.
l.
Facility / Unit
Design Cell
Tool Room
2.
Heat Treatment Unit
3.
Tool Trial & Validation Unit and Component Production Unit
4.
Quality Analysis, Testing and Calibration Unit
5.
Skill Development Centre
6.
Support Equipment
7.
Total
Details of machinery and equipment is available at Appendix C
Amount
(Rs. in lakb)
36.00
42l.20
390.50
1843.60
135.10
205.80
252.00
3284.20
5.3
Unless otherwise specified, funding by the Department of Heavy Industry will be limited
to Machinery component of the Project only and will be governed by the relevant provisions of
General Financial Rules (GFR) read with the DHI Notification dated s" November, 2014 on
Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector published in the
Part I Section 1 of the Gazette of India Notification (Extraordinary) dated 05-11-2014 bearing
no. 71 61 2011- HE&MT ( as amended from time to time) and other Government orders and will
be subject to terms and conditions of this approval letter.
6.
ROLE AND RESPONSIBILITIES OF PROJECT IMPLEMENTING ORGANIZATION
(PIO) also known as Grantee Organization which in the instant case is TAGMA Centre of
Excellence and Training (TCET), A-33, Nand Jyot Industrial Estate, Andheri Kurla Road,
Safed Pool, Mumbai-400072, India.
6.1
The Project Implementing Organization (PIO) shall be responsible for timely delivery of
the output subj ect to timely receipt of funds from both DHI and others.
6.2
The PIO shall maintain a separate account for the funds released by DBI for execution of
this project.
6.3
The PIO shall make arrangements for proper operation and maintenance of equipment/
knowledge procured under the project. PIO shall acknowledge procurement of equipment under
this project by a "TRUST RECEIPT" which is attached, to this document as Appendix D
6.4
The PIO shall ensure that the funds released are utilized only for the purpose of the
Project.
6.5
The PIO shall provide free access to DBI officers (or nominees / representatives) and the
Apex Committee- Capital Goods Scheme (AC-CG) members and their representatives to all
facilities/ assets and their records relating to the project located at their worksite.
6.6
The PIO shall also be responsible for achieving and regular reporting the progress of the
project to DBI. The PIO shall also submit its Standard Operating Procedure (SOP),
Memorandum of Articles of Associations (MoA), proceedings of Governing Council/Board and
such other documents, which contain information pertinent to the project.
6.7
The PIO shall maintain a register of permanent and semi-permanent assets including
Machinery acquired wholly or mainly out of the grant-in-aid as well as log for use of them. The
PIO should maintain proof of having procured genuine new machinery from the vendor along
with invoices, payment receipt and market value of the specifically procured machine. The
Register/ log shall be open to inspection by the Department of Heavy Industry. The utilization of
assets so created shall be in public interest and shall be the responsibility of the PIO.
6.8
The PIO will ensure that assets will not be disposed-off sold/ transferred/ leased/ rented/
transferred without prior approval of (AC-CG).
6.9
The PIO will not load DHI grants into the revenue formula, while determining the user
charges! fees.
6.10 The PIO will ensure that the services are offered to the CG sector units particularly those
belong to Micro, Small and Medium Enterprises sector at charges equal to or lower than the
market rates, so that their cost of conversion is kept equal to or below global best practices.
6.11 The PIO shall also be responsible for adhering to law of the land including rules of
central, state and local Governments in its operation.
6.12 The PIO sha11indemnify and protect Government of India from a11costs, damages and
expenses arising out of any claim, action or suit brought against Government of India by third
parties in respect of any infringement of any patent, registered designs or Intellectual Property
Rights resulting from use of any technical information, data or process or design belonging to or
used by the PIO and! or furnished to Government of India.
<
'
6.13 The PIO will adhere and follow the Labour Acts and Rules while executing this Contract
and shall keep the Government of India indemnified and protected from. all claims, costs,
damages and expenses arising out of any violation of Labour Acts and Rules.
6.14 In case the PIO proposes to import any equipment, software etc. for the purpose of
performance of the job in India, all duties related to such imports shall be paid directly by the
PIO to the concerned authorities. DBI will not bear any liability on this account. It will be the
responsibility of the PIO to provide the required particulars and documents to the Customs
authorities and other Government Authorities and get the materials cleared and transported in
time. The PIO shall be fully responsible for the delays, demurrage, penalties, charges and losses,
if any, in this regard.
6.15 The PIO, shall under the project cost, insure and keep insured all the machinery and
equipment etc. acquired for implementation of the Project, for a minimum period of 5 years by
utilizing the grant- in- aid. In case of loss or damage of such machinery and equipment, etc. the
insurance benefit will be payable to the Govenunent of India.
7.
MANDATORY OBLIGATIONS
7.1
It is obligatory on the part of TAGMA Centre of Excellence and Training (TCET),
to ensure free access to AC-CG members, Review Committee Members/ DHI officials/ its
representatives to all facilities/ assets and records relating to the project located at their works.
7.2
The PIO shall duly acknowledge DHI for funding this project in all publications, reports,
publicity, presentations materials, assets/ facilities created, events etc.
7.3
The PIO shall furnish all deliverables of the project such as full documentation pertaining
to common facilities (including machinery and equipment), design etc. to DHI.
7.4
The assets/ machinery acquired/ facilities created by the PIO wholly or substantially out
of Govermnent grants, except those declared as obsolete and unserviceable or condemned in
accordance with the procedure laid down in the G.F.R., shall not be disposed-of, encumbered or
utilized for the another purpose/ project, without obtaining the prior approval of the authority
which sanctioned the grants. In case of winding up or dissolution of the organization all the
assets acquired to that effect out of the grants-in-aid by the Ministry should be returned forthwith
to the Government of India.
7.5
The PIO shall be required to maintain subsidiary accounts of the Government grant and
furnish to the Accounts Officer a set of audited statement of accounts after utilization of the
grants-in-aid or whenever called for.
7.6
The annual report and audited accounts of the PIO will have to be submitted to the
Ministry in Hindi & English in required numbers by the grantee to be laid on the table of the
both Houses of Parliament within stipulated period of the close of the succeeding financial year
of the grantee if the non-recurring grant is Rs.SO lakhs and above as one- time assistance.
7.7
The accounts of the grants shall be open for inspection by the authority approving the
grant- in- aid and audit, both by the Comptroller and Auditor General of India and Internal Audit
party of the Principal Accounts office of the Department of Heavy Industry whenever the grantee
institution! PIO is called upon to do so.
..
7.8
The PIO is required to submit performance-cum-achievement
one month after the end of the financial year.
reports within a period of
7.9
The expenditure on any scheme should not exceed the approved cost of the respective
scheme and monthly targets of expenditure.
7.10 The grants-in-aid should not be a source of profit. If after examination of the Audited
Accounts, Ministry comes to the conclusion that the grants-in-aid have been source of profit,
then the PIO shall forthwith refund the amount of grants-in-aid to Government ofIndia.
7.11 The grantee organization
recurring grants in aid, released to
Utilization Certificate (UC) which
the Department of Heavy Industry
shall not utilize the interest earned on the recurring! nonit for any purpose. The interest earned shall be indicated in the
can be either adjusted in the next release or to be refunded to
after grants in aid sanctioned is utilized.
7.12 The PIO may keep in view all the economy instructions while incurring the expenditure.
The organization shall not incur any expenditure on those items, the purchase of which have
been banned.
7.13 A Penal interest is chargeable if the PIO fails to furnish progress report! Audited
Statement of Accounts! Audited Utilization Certificate etc. within the specified period after
release of grant- in- aid in the event of Sh011closure ofthe project due to non-technical reasons.
7.14 In the event of any liquidation or bankruptcy proceedings or any threatened distress
action against the PIO or any of its assets; machineries and equipment procured for the purpose
of the Project out of or with the support of grant- in- aid shall be outside such proceedings and
the GOI may assume the control and management of the PIO and appoint any of its officer or
authorized representative to run the Project.
.~
8.
8.1
ROLE
AND
RESPONSIBILITIES
ORGANIZATION - DHI
OF
PROJECT
COORDINATING
DHI will approve and provide grants and review the progress of the project.
8.2
A nominated Officer of DHI for the project will represent DHI in the Board/ Governing
Council/ Project Co-ordination Mechanism of PIO.
8.3
No financial decisions will be taken in the Board / Governing Council/such
without the presence of the DHI nominee or without the approval ofDHI.
mechanism
·
'
8.4
DHI would release the funds to the PIO i.e. TAGMA Centre of Excellence and Training
(TCET), in the designated Project Account for execution of the project depending upon the
financial, technical and physical progress of the project and recommendations of the nodal
officer.
8.5
DHI will monitor utilization of Grants by PIO so that the funds released are utilized by
PIO only for the purpose of the project component for which it is released.
8.6
DHI would be free to use the IPR/ equipment/ facilities; software procuredl developed for
any scientific work or technology development/ demonstration purpose on their own or can
request the PIO for use of this infrastructure by any other organization) agency or manufacturer
for scientific technology development/ demonstration! public purpose.
8.7
DHI will provide necessary certificates/ documents for facilitating approvals from
Central Government under section 35 of IT act towards expenditure incurred on scientific
research, wherever applicable.
8.8
Joint Secretary (BE& MT), DBI shall be the contact person for all matters concerning the
project.
9.
MONITORING PROGRESS
9.1
The PIO will furnish the progress (Technical and Financial) of the project in reference to
milestones for each quarter within a month after completion of the quarter in compliance with
paragraph 16.2 of the Scheme Guidelines. For the purpose of furnishing quarterly reports, the 1st
quarter starts in April of every financial year. The Quarterly Progress Reports (QPR) are to be
furnished in the prescribed formats for reporting technical and financial progress.
9.2
Joint Secretary (HE&MT) ofDHI (or his authorizedrepresentative(s))
will monitor the
progress of the project with reference to the milestones specified in the project schedule. If
necessary a team could undertake physical verification. DHI reserves the right to outsource full/
part work of physical verification.
9.3
Progress reporting may be done online, if such a system is made available by DB!.
9.4
Grants linked to milestones will be released after physical verification of the reported
progress and request of grant release.
9.5
Annual Reports of the Project will also be submitted along with financial year end
Utilization Certificates.
9.6
Other steps for progress monitoring shall be as per the Notified CG Scheme Guidelines
on November 5, 2014 and lor orders of Screening Committee.
10.
PROJECT REVIEW BY DHI NODAL OFFICER
10.1 In case monitoring points to deviations, the progress of the projects will be reviewed by
the DHI Nodal Officer(s) along with beneficiary units in reference to .set Project Schedule/
milestones and output.
10.2
Overall performance of the scheme will also be reviewed at least once in a year.
10.3 DBI Nodal officer will submit his report to the Screening Committee for its progress
review from time to time.
10.4 Other mechanism for monitoring shall be as per the Notified CG Scheme Guidelines to
be read with orders of Apex Committee issued in this regard from time to time.
11.
PROJECT REVIEW BY APEX COMMITTEE OF THE CG SCHEME (AC- CG)
11.1 The Screening Committee will consider the report of the Nodal Officer and the quarterly
progress Report furnished by the PIO and send its comments/ recommendations along with the
copy of the Quarterly Reports to the Apex Committee.
11.2
it.
The Apex Committee will review the progress of the project which has been approved by
11.3
If necessary PIO and beneficiary units may be invited during progress review at AC-CG.
11.4 The AC-CG may send its own teams for physical verification, particularly in cases where
the progress has not been as per milestones set.
11.5 The monitoring may bring out need for changes in approval of the project, which may be
considered by the Apex Committee on their merits.
12.
PROJECT REORIENTATION
The scope and the work! activities of the project can be re-orientated without deviating from
broad objective and scope of the approved project, based on the recommendations of nodal
officer, Screening Committee and approval of AC-CG
13.
FUND UTILIZATION CERTIFICATE (UC) AND PROJECT ACCOUNTS
13.1 Before the release of subsequent grant, PIO shall submit the Fund Utilization Certificate
(UC) in the specified format (Form GFR 19A) along with progress report and a certified copy of
project account statement duly remarked / reconciled. '.
13.2 All Utilization Certificates indicating the financial statements shall be audited and
certified by "Accounts Officer" of the PIO or by authorized "Auditors" or "Head of Accounts".
13.3 The UC in respect of utilization of grants for the purposel object for which it was
sanctioned should be furnished by the PIO with an audited statement of accounts, within
stipulated period of the closure of the financial year. The utilization certificate should also
disclose whether the specified, quantified and qualitative targets that should have been reached
against the amount utilized, were in fact reached, and if not the reasons thereof. They should
contain an output based performance assessment. An UC of the released I utilized amount will be
submitted without fail before the end of the next financial year or before release of the next
instalment of grant, whichever is earlier. It will contain a certificate that previous UCs (wherever
applicable) have been submitted to the satisfaction of the Department of Heavy Industry.
13.4
An interim UC shall be submitted, while making request for release of fund.
13.5 The project accounts will be maintained as per the GOI GFR and best practices. Name/s
of authorized signatories will be informed to DHI.
l3.6
The Accounts duly audited by extemal auditors shall be forwarded to DHI at the end of
each financial year.
13.7 Unspent balancesl bank interest I other earning will be taken into account in the Project.
Any interestl investment returns received on account of DHI funds will be counted as DHI grant
within the overall sanction. UC will contain statement of such income. The interest earned shall
either be adjusted in the next release or shall be refunded to the Department of Heavy Industry
after grants in aid sanctioned is utilized.
13.8 Grants I bank interest spent on purposes other than sanction will attract heavy penalties
and other punishments as per the provisions of law of the land.
13.9 Utilization of Fund and maintenance of Accounts should be done in accordance with
relevant provisions of GFR and will be subject to Government auditsl CAG audits.
14
PROJECT COMPLETION & TECHNICAL REPORT
14.1
A proj ect will be deemed to be completed when all outcomes have been achieved.
14.2 The project completion (commercialization of technologies developedl
facilities created) will have to be assessed in consultation with beneficiary units.
acquired or
14.3 The PIO will report the project closure to the Joint Secretary (HE&MT), DH!. The
Report will be submitted to the Screening Committee constituted under the Scheme.
14.3 The PIO along with industrial partner(s) from CG sector shall make a presentation to the
Screening Committee on project completion.
14.4 DHI nodal officer and/or an Expert Committee appointed by the Screening Committee
will physically verify project completion and give their repOli to the AC-CG.
14.5
The AC-CG will finally approve the request of project completion on merits.
14.6 The PIO shall submit a Project Completion Report (Technical cum Financial) along with
a soft copy in CD (preferably in MS word format) to the nodal officer in DHI within one month
of the completion of the project irrespective of holding of AC-CG. The PIO shall also furnish the
feedback, suggestions and project evaluation along with the project completion report. Such
completion reports will be used for CG-Scheme evaluation and drafting Roll-out Phase of the
CG-Scheme.
14.7 Based on approval by AC-CG, DHI will issue project closure certificate and also settle
any remaining grants/ financial dues.
14.8
Project time overruns will have to be justified to AC-CG/ DHI.
14.9 Project cost overruns are not entertained by DHI. However, DHI-AC-CG will have to be
in loop including early warnings. Further action will be taken as per Government Orders.
14.10 Project failures (part or full) will have to be justified to DHI AC-CG. Further action will
be taken as per Government orders.
14.11 All decision of AC-CG will be binding on the PIO.
15.
PATENT AND TECHNOLOGY TRANSFER MECHANISM
15.1
The parties recognise the intellectual property rights in all respect for each other.
15.2 Technology transfer fees and royalty, if any, shall be decided by mutual consent ofDHI
and the PIO after achieving key milestones.
16.
CONFIDENTIALITY
16.1 The PIO will maintain strict confidentiality and prevent disclosure thereof of all
information and data exchanged/ generated pertaining to work assigned under this approval letter
at all time except with prior consent of DHI.
16.2
This is subject to RTI and other laws of the land.
17.
STATUTORY REQUIREMENTS
17.1 All aspects of this SPY will be carried out by the PIO in accordance with statutory
provisions like Workmen's Compensation Act, Labour (Regulation and Abolition) Act, Contract
Labour (Regulation and Abolition) Act, employees Provident Act or any other related enactment
passed by the Parliament or State Legislature and any rules/ laws made thereunder by the either
Central or respective State Governments.
~3}
17.2 Since the project is sanctioned to the PIO, it shall not be transferred to any other
Institution. Transfer of project money within the Institution or with other Institutions under the
same Management is not permitted under any circumstances.
17.3 If the force majeure conditions continue beyond six months, DBI and the PIO shall then
mutually decide about the future course of action.
18.
FORCE
MAJEURE
None of the participating agencies/ bodies shall be held responsible for non- fulfilment of
their respective obligations under this approval letter due to the exigency of one or more of the
force majeure events, such as but not limited to, acts of God, war, natural calamities such as
flood, earthquakes etc. and strike, lockout, epidemics, riots, civil commotion etc. provided on the
occurrence of 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 or cessation.
19.
VALIDITY
OF APPROVAL
The approval letter comes into force on the date of issue and is valid for a period of 5
(Five) years from the date of issue or till the date of issue of Project Closure Certificate by DHI
whichever is earlier.
20.
AMENDMENTS
TO THE TERMS
& CONDITIONS
OF APPROVAL
No amendment or modification of terms and conditions shall be valid unless the same is
made in writing by DBI and the PIO or their authorized representatives and specifically stating
the same to be an amendment of this approval letter. On part of DBI approval of the Apex
Committee will be a pre- requisite for making any amendment to this approval letter. The
modifications/ changes shall be effective from the date on which they are made/ executed, unless
otherwise agreed to.
21.
RESOLUTION
OF DISPUTES
In the event of any dispute between DHI and the PIO, in the first instance, the same
should be resolved mutually. For this, Secretary, Heavy Industry will be empowered to nominate
a common panel of arbitrator.
21.1
2l.2
In the event of non-resolution, the matter shall be referred to arbitration to be held in New
Delhi as per the Indian Arbitration and Conciliation Act 1996. Costs shall be shared equally.
22.
JURISDICTION
22.1
The instant Approval Letter issued by DHI and acceptance of the same by the PIO will
constitute an Agreement. The courts at Delhi shall have jurisdiction in all matters concerning this
Agreement including any matter arising out of the arbitration proceedings or any award made
therein.
23.
GOVERNING LAW
Notwithstanding _anything contained in this Approval Letter, in case of any conflict
between any of the provisions of this Approval Letter with provisions of DHI Notification on CG
Scheme dated 5.11.20141 General Financial Rulesl and other relevant Government Instruction(s)1
Order(s), the latter will prevail. Right of interpretation of DHI Notification on CG Scheme dated
05-11-20141
General Financial Rules/ Government Instruction(s)1 Order(s) for this purpose
shall rest with the Secretary, Department of Heavy Industry.
24.
Termination
24.1
Termination by DHI: DHI may terminate this arrangement upon 30 calendar days' notice
in writing or after occurrence of any of the events specified in paragraphs below:
(a)
If the PIO does not remedy a failure in the performance of its obligations under the
Agreement, within 30 days of being notified of such a failure, or within such further
period as DHI may have subsequently approved in writing;
(b)
If the PIO becomes insolvent or bankrupt; or
(c)
If, as the result of Force Majeure event, the PIO is unable to perform a material portion of
its obligations for a period of not less than 30 days.
24.2 Termination by PIO: PIO may terminate this arrangement upon 30 calendar days' notice
in writing after occurrence of any of the events specified in paragraphs below:
(a)
If DHI fails to make any payment due to the PIO pursuant to this arrangement within 30
days after receiving written notice from the PIO that such payment is overdue; or
(b)
If, as the result of Force Majeure, DHI is unable to perform a material portion of its
obligations for a period of not less than sixty days.
The termination of this arrangement shall not prejudice or affect in anyway, the rights and
benefits accrued or liabilities and duties assigned to the .Parties of this Approval letter.
<
•
Appendix A
(Paragraph 3.3)
ONE PAGE SUMMARY OF THE "PROJECT"
Common Engineering Facilities Centre (CEFC) at Chakan, Pune by TAGMA Centre of
Excellence and Training (TCET),
EXECUTIVE SUMMARY
Project Title
Common Engineering Facilities Centre (CEFC) at Chakan,
Pune by TAGMA Centre of Excellence and Training (TCET).
TARGET
Tooling industry in and around Pune
Project Duration
2015-2016 (One year)
Project Outlay
Rs. 51.92 crore ( including Rs.32.84 crore for machinery and
equipment)
Main Sponsor
DHI (Dept. of Heavy Industry), Ministry of Heavy Industry,
GOI
Project execution
TAGMA Centre of Excellence and Training (TCET).
Project Stakeholders:
Tool and Gauge Manufacturers Association (TAGMA)
Objectives & Outcome of the Project:
The objective of the project is to upgrade the existing Tooling Industry in and around Pune by
setting up Common Engineering Facilities Centre (CEFC) for the Tools, Moulds and Dies
Industry. Its main focus would be on those activities and services which are not available with
the small and medium units like Tool Trial, validation, calibration set up, high end
manufacturing facilities etc. It would also have Skill Development Centre for training. The
Centre would run short term training courses with emphasis on practical training.
Benefits
Major benefits that the Tooling Industry in and around Pune would reap are State-of-the-art
machineries, improve speed of delivery and quality, enhance standards of cluster units, improve
production capacity and product diversification, reduce reliance on getting services from other
countries, saving foreign exchange, reduction in tariffs and lead time, development of facilities
not available in the region, training facilities, tool repair facilities etc.
<
'
Appendix B
(Paragaraph 3.3)
Proposed Implementation Schedule
1.2
Design of Infrastructure Facilities
1.3
Design of CFC & Administrative Block
1.4
Estimate, Rate & BOQ
2
Construction
2.1
obilization
2.2
Site Clearance Grading & Set out
2.3
Roads & Stann Water Drainage
2.4
Water Supply, Sewarage & STP
2.5
CFC & Administrative Block
Electrical Works
IS/
/21
Appendix C
(Paragraph 5.2)
List of Machinery to be installed in TeET along with indicative cost
1)
List of Equipment For Design Cell
Sl.
Equipment
Quantity
CAD/ CAM Workstation with
Software
Mouldflow Analysis
Total
4
Unit Prices
(Rs. In Lakh)
6.50
Amount
(Rs. In Lakh)
26.00
1
10.00
10.00
No.
1
2
2)
List of Equipment For Tool Room
Sl.
No.
1.
2.
")
J.
4.
5.
6.
7.
8.
9.
10.
1l.
12.
13.
14.
15.
16.
3)
36.00
Equipment
Lathe
Milling with DRO
Surface Grinder
Cylindrical Grinder
CNC Lathe
Optical Profile Grinder
Radial Drilling Machine
VMC/CNC Milling
Robo Drill! EDM Hole
Drill
CNCEDM
CNC Wire-cut
Work Benches with Vice
Die/ Mould Polishing Kit
Bench Drill
Pedestal Grinder
Hydraulic Press
Total
Quantity
4.00
2.00
2.00
1.00
2.00
l.00
1.00
2.00
l.00
Unit Prices
(Rs. In Lakh)
5.00
14.00
12.00
10.00
15.00
40.00
12.00
70.00
15.00
Amount
(Rs. In Lakh)
20.00
28.00
24.00
10.00
30.00
40.00
12.00
140.00
15.00
l.00
2.00
4.00
1.00
4.00
4.00
1.00
20.00
32.30
0.30
3.00
0.25
0.25
12.00
20.00
64.00
l.20
3.00
1.00
l.00
12.00
421.20
List of Equipment of Heat Treatment Unit
Sl.
No.
1.
2.
Equipment
Metallurgical Microscope
Sample/ Test Piece
Grinder/ Polisher
Quantity
1.00
l.00
Unit Prices
(Rs. In Lakh)
25.00
l.00
Amount
(Rs. In Lakh)
25.00
l.00
-,
.J.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
4)
Belt Grinder/Polisher
Mounting Press
Nitridingl Nitro-Carburising
Furnaces
Washing Machine
Vacuum Hardening &
Tempering Furnace
Shot Blasting Twin Table
Type
Furnace- Hardening
Furnace-Air Circulating
Tempering
Quenching Tanks
Over Head Crance-lOT
Spark Spectrum
Micro Hardness tester
Rockwell Hardness Tester
Sample Cut-off Machine
Total
2.00
1.00
l.00
1.00
S.OO
12.00
2.00
S.OO
12.00
4.00
l.00
2.00
250.00
8.00
250.00
2.00
10.00
20.00
l.00
l.00
12.00
5.00
12.00
5.00
2.00
l.00
1.00
1.00
1.00
1.00
2.50
15.00
20.00
8.00
l.00
1.50
5.00
15.00
20.00
8.00
1.00
1.50
390.50
List of Equipment for Tool Try Out and Validation
Sf.
No.
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)
12)
13)
14)
15)
Equipment
Injection Moulding -63T
Injection Moulding-lOOT
Injection Moulding-150T
Injection Moulding- 250T
Injection Moulding-500T
Injection Moulding-650T
Injection Moulding-850T
Inj ection Moulding-1600T
Mechanical Power Press64T
Mechanical Power PresslOOT
Mechanical Power Press200T
Press-250- T
Hydraulic
(Draw & Form)
Press-lOOT
Mechanical
(High Speed)
Die Casting Machine-Cold
Chamber-250T
Die Casting Machine-Cold
Quantity
1.00
1.00
1.00
1.00
1.00
1.00
l.00
1.00
1.00
Unit Prices
(Rs. In Lakh)
20.00
25.00
30.00
55.00
90.00
125.00
150.00
500.00
25.00
Amount
(Rs. In Lakh)
20.00
25.00
30.00
55.00
90.00
125.00
150.00
500.00
25.00
1.00
30.00
30.00
1.00
65.00
65.00
1.00
50.00
50.00
1.00
75.00
75.00
1.00
150.00
150.00
1.00
300.00
300.00
Chamber-SOOT
Electric Melting FurnaceSOOKgs
Coi1er & Decoi1er
Straightner
Eo T Cranes -lOT
Crane -250 T
Chiller Units - 30 TR
Compressor -90 CFM
Pallet trolleys -5T
Grinders
for
plastic
material
Mould Dehumidifier
HRS Controller
HRS
MTC
Total
16)
17)
18)
19)
20)
21)
22)
23)
24)
25)
26)
27)
28)
l.00
10.00
10.00
4.00
4.00
2.00
1.00
l.00
l.00
4.00
2.00
0.65
0.50
12.00
30.00
10.00
4.00
0.50
5.00
2.60
2.00
24.00
30.00
10.00
4.00
2.00
10.00
8.00
l.00
1.00
2.00
40.00
3.00
8.00
8.00
1,843.60
'.
5.00
3.00
8.00
4.00
5) List of Equipment for Quality Analysis, Testing and Calibration Unit
S.No.
1.
Equipment
Surface! Marking
Table (Granite! CI)
2. Digital Height Masters
Profile Projector (SOX Lens)
J.
4. 3D CMM Contura G2
5. Digi tal Verneir Calli per
(0- 300)
6. Micrometers
(Inside! Outside)
7. Pin Gauge set
8. Slip Gauge Set
(Upto 100 MM)
9. Depth Micrometer (0- 150 )
10. Dial Test Indicators
(Lever! Plunger Type)
11. Bore Dial Gauge ( 6 - 150 )
Total
'1
Quantity
Unit Prices
(Rs. In Lakb)
1.20
Amount
(Rs. In Lakb)
4.80
8.00
15.00
100.0
0.05
8.00
15.00
100.00
0.60
12.00
0.10
l.20
1.00
2.00
0.50
0.75
0.50
l.50
2.00
10.00
0.75
0.05
l.50
0.50
2.00
0.75
1.50
135.10
4.00
1.00
1.00
1.00 ..
12.00
6) A.
List of Equipment for Skill Development Centre
Equipment
S.No.
1.
CAD/CAM
Software (Educational)
2. CNC SimulatorsLathe/ Milling Kit
.J.
Class-room Equipment
4. Seminar/ Conference
100Capacity
5. Work Benches
6. Drilling Machine
7. Lathe
8. Milling
9. Surface Grinder
10. Pedestal Grinder
II. LCD Projectors
12. White Magnetic Boards
13. Xerox/Copier/Scanner/Printer
..
14. Binder
15. CNC Lathe
(training machines)
16. VMCI CNC Milling - 5 axis
Information
17. Knowledge
Centre
Total
')
6) B.
Quantity
12.00
Unit Prices
(Rs. In Lakh)
l.50
Amount
(Rs. In Lam)
18.00
2.00
5.00
10.00
4.00
2.00
3.00
5.00
12.00
10.00
10.00
4.00
4.00
4.00
2.00
6.00
4.00
5.00
1.00
2.00
l.00
0.30
0.50
4.00
8.00
12.00
0.50
0.75
0.50
3.00
0.25
15.00
3.00
2.00
16.00
32.00
24.00
3.00
3.00
2.50
3.00
0.50
15.00
1.00
l.00
20.00
15.00
20.00
15.00
189.00
List of Support Equipment for Skill Development Centre
S.No.
l.
2.
')
.J.
4.
5.
6.
7.
8.
Equipment
Quantity
Tool storage cabinet -Godrej make, drawer
type
Tool trolley -Godrej make
Plastic tool holders
Wooden work bench
- 6' X 3', Medium duty
Steel Almirah - Godrej make, 6', high
Plastic drums - For chip storage
Anti - vibration mounts - For both
machines
Isolation transformers - As per machine
current ratings
2.00
Amount
(Rs. In Lakh)
0.35
1.00
50.00
l.00
0.37
2.00
2.00
2.00
0.30
0.05
0.40
2.00
0.60
0.35
0.20
9.
Cuttings tools and inserts
For CNC turning centre
Cutting tools, inserts and holders - For
CNC machining centre
Hand tools set - Spanner etc
Measuring tools - Vernier, Micrometer,
Dial Guages etc.
Lubricating oil
Coolant oil
Total
-r-
10.
11.
12.
13.
14.
Lot
5.00
Lot
7.00
Lot
Lot
0.10
2.00
5 ltr.
50 ltr.
0.02
0.06
16.80
7) List of Support Equipment for the Centre
S.No.
1.
2.
3.
4.
s.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
Equipment
DG Set 100KvA
Compressor
Moveable
Maintenance
Trolley"
Air-condi tions- 52TR
Hand Tools
Cooling Tower
Water Treatment
Plant
(DM Water)
Consumable & Spares
Raw
material
Storage
Rack
Tool Cabinets/ Racks
ERP Software with Workstation
Pallets/ Trolleys
Band-saw(Hydraulic)
Furniture & Fixtures
Computers/Laptops/Office
Equipment
Communication
Xerox, Copier, Scanner
Total
Quantity
3.00
2.00
4.00
Unit Prices
(Rs. In Lakh)
15.00
4.00
0.50
Amount
(Rs. In Lakh)
45.00
8.00
2.00
1.00
4.00
1.00
2.00
50.00
0.50.
4.00
6.00
50.00
2.00
4.00
12.00
1.00
10.00
5.00
0.50
5.00
5.00
40.00
2.00
0.50
15.00
20.00
30.00
4.00
2.00
1.50
4.00
6.00
8.00
1.00
50.00
252:00
Appendix D
(Paragraph 6.3)
TRUST RECEIPT
1.
In the matter of approval letter dated
I III 2015 by Department of Heavy Industry
(DHI), addressed to TAGMA Centre of Excellence and Training (TCET), regarding the Project
for setting up of Common Engineering Facilities Centre (CEFC) at Chakan, Pune.
2.
The Plant, Machinery and Equipment though purchased in the name of TAGMA Centre
of Excellence and Training (TCET) with the funds provided by DBI, for the subject project, will
be with TCET during the implementation of the proj ect and thereafter till they are useful for the
purpose stated in the above Approval letter.
3.
The Plant and Machinery and equipment will not be transferred or disposed of by TCET
without the prior written approval of DB I, and would remain with them.
4.
IN WITNESS THEREOF TAGMA Centre of Excellence and Training has executed
these presents on
DAY of
November, 2015.
Signed by
SI.No.
Ocw£ation
Name
& Address
Signature -
1
For and on behalf of the TAGMA Centre of Excellence and Training
in the presence of Witnesses:
Sl.No.
1
2.
Name
Occupation & Address
Signature