Ministry of Heavy Industries notified Scheme on Enhancement of Competitiveness in Indian Capital Goods Sector- Phase-II (2022)

The Government and Security

25th January, 2022

Ministry of Heavy Industries (MHI) has notified the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector- Phase-II for providing assistance to Common Technology Development and Services Infrastructure. The scheme has a financial outlay of Rs. 1207 crores with Budgetary support of Rs.975 crore and Industry Contribution of Rs.232 crore . The scheme was notified on 25th January, 2022.

The objective of Phase II of the Scheme for Enhancement of Competitiveness of the Capital Goods Sector is to expand and enlarge the impact created by Phase I pilot scheme, thereby providing greater impetus through creation of a strong and globally competitive capital goods sector that contributes at least 25% to the manufacturing sector.

There are six components under the Scheme for Enhancement of Capital Goods Sector Phase II, namely:

(i) Identification of Technologies through Technology Innovation Portals;

(ii) Setting up of four New Advanced Centres of Excellence and augmentation of Existing Centres of Excellence;

(iii) Promotion of skilling in Capital Goods Sector–creation of Qualification packages for skill levels 6 and above;

(iv) Setting up of four Common Engineering Facility Centres (CEFCs) and augmentation of existing CEFCs;

(v) Augmentation of Existing Testing and Certification Centres;

(vi) Setting up of ten Industry Accelerators for Technology Development


EXTRACT OF NOTIFICATION

MINISTRY OF HEAVY INDUSTRIES
NOTIFICATION
New Delhi, the 25th January, 2022
No. 16/1/2017-HE & MT.

GUIDELINES OF THE SCHEME ON ―ENHANCEMENT OF COMPETITIVENESS IN THE INDIAN CAPITAL GOODS SECTOR- Phase-II‖ FOR ASSISTANCE TO COMMON TECHNOLOGY DEVELOPMENT AND SERVICES INFRASTRUCTURE

1. OBJECTIVE

The objective of Phase II of the ―Scheme for Enhancement of Competitiveness of the Capital Goods
Sector‖ is to expand and enlarge the impact created by Phase I pilot scheme, thereby providing greater
impetus through creation of a strong and globally competitive capital goods sector that contributes at least
25% to the manufacturing sector.

2. SCOPE OF THE SCHEME ON ENHANCEMENT OF COMPETITIVENESS IN THE INDIAN
CAPITAL GOODS SECTOR- Phase-II‖ FOR ASSISTANCE TO TECHNOLOGY
DEVELOPMENT AND SERVICES INFRASTRUCTURE

The scheme for enhancement of competitiveness in the Capital Goods sector – Phase II is aimed at:
(i) Creating a strong and globally competitive capital goods sector that contributes at least 25% to the
manufacturing sector and to increase the ability of the capital goods sector to meet the domestic demand
and to make India a net exporter of capital goods.
(ii) Creating a self-sustaining eco system for research and innovation for manufacturing technologies
through the use of Technology Innovation Portals.
(iii) Enhancing the skills of the existing manpower and to expand the availability of highly skilled
manpower for the sector particularly in niche skills like robotic welding, precision machining, metallurgy,
metrology, computer aided designing of machine parts, thermal analysis, sound and since vibration
engineering, designing of high precision tools and their manufacturing etc.
(iv) Providing infrastructure for testing quality of processes / products developed and manufactured to
ensure that they comply with international mandatory standards. Regular testing and certification shall
facilitate improvement in quality of capital goods and make them globally competitive.
(v) Creation of common engineering infrastructure for designing and manufacturing for the benefit of
MSMEs and other industries of the Capital Goods Sector which are unable to access the latest high
technology machines required for manufacturing and which will also encourage development of supply
chains to develop quality products of international standards besides boosting industrial production.
(vi) Promotion of smart manufacturing and to facilitate adoption of relevant, robust and affordable
technologies for Industry 4.0 in the Capital Goods sector in order to improve efficiency and productivity.

(vii) Promotion of progressive indigenization of technologies for capital goods, by engaging local industry,
as an active partner in innovation and development of new products, in partnership with premier
institutions, in the forefront of industrial innovations, through creation of Industry Accelerators.

3. Components under the Scheme for Enhancement of Capital Goods Sector Phase II

a. Identification of Technologies through Technology Innovation Portals- Six Web-based open
manufacturing technology innovation platforms have been developed by CPSEs namely BHEL, HMT,
autonomous bodies namely CMTI and ARAI; centre under autonomous body- iCAT and educational and
research institution namely IIT Madras under the CEFC component of phase I of the scheme, to bring the
country‘s technical resources and the Industries on to one network to kick start and facilitate identification
of technology problems faced by the Industry and crowd source solutions for the same in a systematic
manner so as to facilitate start-ups and angel funding of Indian innovations. These platforms will identify
technological solutions to the problems and challenges posed by the Industry.
b. Setting up of four New Advanced Centres of Excellence and augmentation of Existing Centres of
Excellence – The advanced CoEs shall fulfill the needs of development of high risk futuristic technological
products like high tech machine tool aggregates, controls, guides, motors, CNCs, high precision
components, hydraulics, high tech textiles machines, electronic parts and other strategic mother
technologies including those identified through technology and Innovation platforms that are indigenously
required by the Capital Goods Sector.
c. Promotion of skilling in Capital Goods Sector–creation of Qualification packages for skill levels 6
and above –Qualification packages (QPs) shall be created for skill levels 6 and above in association with
skill councils. These Qualification packages shall be used for imparting of skill training in the Samarth
Udyog and Skill Centres developed under Phase-I of the Capital Goods Scheme and other identified
institutions.
d. Setting up of four Common Engineering Facility Centres (CEFCs) and augmentation of
existing CEFCs-The CEFCs is aimed at creating demonstration, awareness, training, consultancy, hand
holding and providing R & D services for the Industry. Essential common services like a national Industry
4.0 platform, test beds, data bases, resource centres, experts, standards, M2M protocol, Industrial IOT,
Artificial Intelligence, robotics, data analyses, virtual and augmented reality will also be provided. These
Centres will also provide logistical support for the development of new technologies developed through
Technology and Innovation platforms.
e. Augmentation of Existing Testing and Certification Centres – Augmentation of Test and certification
centres are aimed at meeting the needs of CG Sector for testing of machinery in terms of various properties
relating to mechanical, electrical, chemical, structural, metallurgical, electronics, etc. Certification and
development testing of machines is essential to attain global competitiveness and address quality related
issues. This need shall be addressed through these centers. These Centres will also extend similar testing
and certification facilities for the new Technologies developed through Technology and Innovation
platforms.
f. Setting up of ten Industry Accelerators for Technology Development- The industry accelerators are
aimed at development of targeted indigenous technologies, scaled to meet the requirements of selected
industry segment, which till now has been dependent on imports. Selected Academic Institute/ Industry
Body will act as an Accelerator for fostering the development of such technologies. The accelerator will
identify domains of (Capital Goods and auto sector) and Select companies into cohorts based on the present
strength of domestic Capital Goods industries and facilitate the development of commercially viable
indigenous technologies/ products/ technological reengineering and collaborate with them to facilitate the
development from the concept stage, through development, trial and testing of prototypes up to
commercialization of the same.

4. COMPONENT SPECIFIC GUIDELINES UNDER THE SCHEME ON ―ENHANCEMENT OF
COMPETITIVENESS IN THE INDIAN CAPITAL GOODS SECTOR‖
The scheme has following components, whose guidelines are indicated in the following paras:
4.1. Identification of Technologies through Technology Innovation Portals- set up by BHEL, HMT,
CMTI, ARAI, iCAT and IIT Madras under Scheme for Enhancement of Competitiveness in the Capital
Goods Sector, Phase I.

4.1.1 Objective- Six technology Innovation Platforms have been created under Phase I. The objective of
six platforms is to provide an eco-system that encourages interactions of all the relevant stakeholders by
crowd sourcing in an open and collaborative framework for facilitating Startups and angel funding of
innovation, research and development of mother manufacturing technologies‘ indigenously relating to
the capital goods and auto sectors.
4.1.2 Funding pattern- The funding pattern under the TIPs component shall be as per MoUs signed for the
six TIPs under Phase I.
4.1.3 Mechanism: Under Phase II of the scheme, the six TIPs developed under Phase I shall be
promoted and supported. No new TIPs shall be created under Phase II of the scheme.
4.2 Setting up of four New Advanced Centres of Excellence and augmentation of Existing Centres of
Excellence
4.2.1 Objective-The objective of Centre of Excellence is to fulfill the needs of development of high risk
futuristic technological projects like, high tech machine tool aggregates, controls, guides, motors, CNCs,
high precision components, hydraulics, high tech textiles machines, electronic parts and other strategic
mother technologies including those identified through technology and Innovation platforms that are
indigenously required by the Capital Goods Sector.
4.2.2 Eligible entities for funding-
(i) R&D/ Academic/ Scientific institutes,
(ii) CPSEs,
(iii) Private industries,
(iv) Existing Centres of Excellence (COEs),
(v) Autonomous Bodies,
(vi) Industry associations
 It is mandatory for all applicants to register on the MHI Technology Innovation Platforms, set up
under MHI CG Scheme Phase I.
4.2.3 Eligible Technologies for funding- High tech machines not manufactured in the country at present in
the sub sectors including but not restricted to:

(i) Machine tools,
(ii) Cutting Tools
(iii) Textile machines,
(iv) Metallurgical machinery,
(v) Steel plant equipment,
(vi) Food processing machinery,
(vii) Printing machinery,
(viii) Plastic processing machinery,
(ix) Process plant equipment,
(x) Earthmoving & mining machinery electrical equipment and their aggregates,
(xi) Press tools & dies,
(xii) Controls, guides, motors, CNCs systems, high precision components, hydraulics, electronic parts,
(xiii) Auto components and other strategic technologies that are indigenously required by the Industry etc.
* The above list is an indicative list only.

4.2.4 Funding pattern- GoI grant will be provided up to 80% of cost of creation of equipment, machinery
hardware and software facilities for the development of new Centres of Excellence for Technology
developmentand augmentation of existing CoEs developed under Phase I. The balance amount shall be
contributed by the applicant(s) in the next three years i.e. 2022-23 to 2024-25. GoI grant will not be given for meeting the cost of land and building. The funding shall be subject to approval of the Apex Committee
constituted under the scheme. The Apex Committee shall be the final authority in this regard. In case of
existing CoEs, funding shall only be provided for development of new technologies. No funding shall be
provided for upgradation of old machines.
4.2.5 Payment Schedule- Disbursement of grants for the projects shall be in accordance with the
milestones laid down in the MoU signed for the project by MHI with Project Implementation Organization
(PIO). The Project Implementation Organization shall be indicated in the proposal by the applicant(s).
4.2.6 Mechanism: The applicant(s) shall submit the application form along with the Detailed Project
Report (DPR)in the prescribed format (Placed at Annexure –V) containing the details relating to the
targeted technology, present value of imports, prospective buyers of the targeted technology, prospective
IPRs, potential orders. The eligible proposals received by MHI shall be screened by the Screening
Committee constituted under the scheme (ToR and constitution of the Screening Committee may be seen at
Annexure-II). Upon recommendation of the Screening Committee, the proposal shall be submitted for the
approval of the Apex Committee (ToR and constitution of the Apex Committee may be seen at AnnexureI). Upon approval granted by the Apex Committee, the MoU shall be signed amongst the PIO, Industry
partner and MHI as per Appendix A. The MoU shall specify terms and conditions of the MHI grants. For
each project approved, a Project Review and Monitoring Committee (PRMC) shall be constituted for
reviewing the progress of the project at fixed intervals. (ToRs of the PRMC have been placed at AnnexureIII ).
4.3 Promotion of skilling in Capital Goods Sector– creation of Qualification packages for skill levels
6 and above- The Ministry shall promote skilling in the Capital Goods sector by creation of Qualification
packages (QPs) for skill levels 6 and above. The sector skill councils shall be responsible for creation of
QPs and defining job wise specifications like lab and trainer qualifications, equipment specifications along
with the job role wise additional requirements like open space, etc.
4.3.1 Eligible entities for funding- Funding shall be given under this component to sector skill
councils under MHI. It is mandatory for all applicants to register on the MHI Technology Innovation
Platforms, set up under MHI CG Scheme Phase I.

4.3.2 Eligible Qualification Packs for funding-The indicative list of qualification packs and expected skill
demands for futuristic job roles are as under:

Indicative List of Proposed Qualification Packs and Related Job Roles QPs for level 6 & above:

i. Factory Automation & Robotics Engineer
ii. Predictive Maintenance Engineer
Job Roles:
i. Process Automation and Remote Diagnostic Engineers
ii. Advanced Mechatronics and CNC/PLC Engineers
iii. Digital Design & Development Engineer
iv. Cyber Data Security Specialist
v. Mobile Communication Technologist
vi. Controls & Systems Technologist
vii. Additive Manufacturing Technologist
viii. Virtual & Augmented Reality Technologist
ix. Machine Learning Technologist
x. Artificial Intelligence Technologist
xi. Manufacturing & Supply Chain Data Analyst
xii. Digital Quality Engineer

xiii. Data Analytics and Dashboard Design Software Engineer
xiv. Machine Connectivity System Designer
xv. Digital Platform Network Engineer
xvi. Sensor Technologist
xvii. Data Capturing Technologist
xviii. System Integrator Technologist

QPs for level 6 & above:

i. ‗Supervisor (Plant & Machinery)‘ of level 7 QP.
ii. ‗Master Mechanic‘ of level 6 for equipment maintenance
iii. ‗Master Operators‘ of level 6 for construction equipment

QPs for level 6 & above:

1. Sr. Engineer Automation for level 6
2. Manager System Integration for level 7
3. Sr. Engineer System Integration for level 6
4. Product Manager for level 7
5. Sr. Engineer Hardware Integration (Communication) for level 6
6. Autonomous Robotics Expert for level 7

Job Roles:

i. Automation Technician (Mechatronics/Robotics)
ii. Instrumentation Technician (Mechatronics/Robotics)
iii. Instrumentation Technician (Multi skills: Pneumatic/Hydraulic/ Vacuum)
iv. Installation & Commissioning Technician (Mechatronics/Robotics)
v. Maintenance Technician (Mechatronics/ Robotics)
vi. Operator (Mechatronics/Robotics)
vii. Troubleshooter (Mechatronics/Robotics)
viii. Programmer (Mechatronics/Robotics)
ix. Automation Supervisor

4.3.3 Funding pattern- GoI grant will be provided up to 100%for the development of Qualification Packs
for identified Skill Training Needs. GoI grant will not be given for meeting the cost of land and building.
The funding shall be subject to approval of the Apex Committee constituted under the scheme. The
decision of the Apex Committee shall be final in this regard.
4.3.4 Payment Schedule- Disbursement of grants for the projects shall be in accordance with the
milestones laid down in the MoU signed for the project by MHI with Sector Skill Councils.
4.3.5 Mechanism- The eligible sector skill council shall submit the application form in the prescribed
format (Placed at Annexure –IX) containing the details relating to the targeted QPs, their scope and
requirement, prospective users / trainees, future job roles targeted by the QP etc.The eligible proposals
received by MHI shall be screened by the Screening Committee constituted under the scheme (ToR of the
Screening Committee may be seen at Annexure-II). Upon recommendation of the Screening Committee,
the proposal shall be submitted for the approval of the Apex Committee (ToR of the Apex Committee may
be seen at Annexure-I ). Upon approval granted by the Apex Committee, the MoU shall be signed between
MHI and the Sector Skill Council as per Appendix A.

4.4 Setting up of four Common Engineering Facility Centres (CEFCs) and augmentation of existing
CEFCs- Common Engineering Facility Centres shall boost the present technology levels of capital goods
in the country through awareness programmes for creating demonstration, awareness, training, consultancy,
hand holding and R & D services to industrial units desirous of upgrading the production by creating
Demonstration cum Experiences Centres.

4.4.1 Eligible entities for funding- Common Engineering Facility Centres in association with industry and
industry associations-

(i) Educational institutes (Private and Govt.)
(ii) R&D institutions,
(iii) CPSEs
(iv) Private Industries,
(v) Autonomous Bodies
(vi) Existing CEFC created in Phase-I
It is mandatory for all applicants to register on the MHI Technology Innovation Platforms set up under the
MHI CG Scheme.
4.4.2 Facilities for funding- CEFCs may be established for the following purposes:
(i) Common foundry & heat-treatment,
(ii) Testing laboratories,
(iii) Designing facility,
(iv) Common prototyping,
(v) General and specific machining,
(vi) Industry 4.0 platform etc.
* The above list is an indicative list only.

4.4.3 Funding pattern- GoI grant will be provided up to 80% of cost of creation of equipment, hardware
and software facilities for Setting up of Common Engineering Facility Centres. The balance amount shall
be contributed by the applicant(s) in the next three years i,e. 2022-23 to 2024-25.Where applicant is an
institution, its financial contribution shall be restricted to only to the revenue generated by the institute. No
grant given by Government of India under any Scheme/ Programme shall be used for this purpose. GoI
grant will not be given for meeting the cost of land and building.The funding shall be subject to approval of
the Apex Committee constituted under the scheme. The decision of the Apex Committee shall be final in
this regard.
4.4.4 Payment Schedule- Disbursement of grants for the projects shall be in accordance with the
milestones laid down in the MoU signed for the project by MHI with Project Implementation Organization.
The Project Implementation Organization shall be indicated in the proposal by the applicant(s).
4.4.5 Mechanism: The applicant(s) shall submit the application form along with the Detailed Project
Report (DPR) in the prescribed format (Placed at Annexure –VI) containing the details relating to the
objective, role of the targeted facility, prospective beneficiaries, revenue generation model, sustainability
model etc. The eligible proposals received by MHI shall be screened by the Screening Committee
constituted under the scheme (ToR of the Screening Committee may be seen at Annexure-II). Upon
recommendation of the Screening Committee, the proposal shall be submitted for the approval of the Apex
Committee (ToR of the Apex Committee may be seen at Annexure-I ). Upon approval granted by the Apex
Committee, the MoU shall be signed amongst the PIO, Industry partner and MHI as per Appendix- A. For
each project approved, a Project Review and Monitoring Committee (PRMC) shall be constituted for
reviewing the progress of the project at fixed intervals. (ToRs of the PRMC have been placed at
Annexure- III).
4.5 Augmentation of Existing Testing and Certification Centres- The Government of India/Private
Industry has created some very good test and certification centres catering to various Capital Goods sub
sectors and Industries. Under this component, it is aimed to augment the existing test and certification centre in order to address the needs of the Capital Goods Sector & Auto sector for testing of machinery.
These Centres will also extend similar testing and certification facilities to new Technologies developed
through Technology and Innovation platforms.
4.5.1 Eligible entities for funding-
(i) Existing Government/ Private Test and Certification centres
It is mandatory for all applicants to register on the MHI Technology Innovation Platforms set up under the
MHI Capital Goods Scheme.
4.5.2 Focus Areas- Test centre under this component shall focus on testing and validation of machinery in
terms of various properties relating to mechanical, electrical, chemical, structural, metallurgical, electronics
aspects etc. related to Capital Goods.
4.5.3 Funding pattern- GoI grant will be provided up to 80% of cost of augmentation of the existing
Testing and Certification Centre for testing equipment, hardware and software over a period of three years
i.e. 2022-23 to 2024-25. The balance amount shall be contributed by the applicant(s).Where applicant is an
institution, its financial contribution shall be restricted to only its revenue. No grant given by Government
of India under any Scheme/ Programme shall be used for this purpose. GoI grant will not be given for
meeting the cost of land and building. The funding shall be subject to approval of the Apex Committee
constituted under the scheme. The decision of the Apex Committee shall be final in this regard.
4.5.4 Payment Schedule- Disbursement of grants for the projects shall be in accordance with the
milestones laid down in the MoU signed for the project by MHI with Testing and Certification centre
which shall be the Project Implementation Organization for the project. The Project Implementation
Organization shall be indicated in the proposal by the applicant(s).
4.5.5 Mechanism:
The applicant(s) shall submit the application form along with the Detailed Project Report (DPR) in the
prescribed format (Placed at Annexure –VIII) containing the details relating to the existing test and
certification centres and the industries being catered by it, objective behind augmentation of the test and
certification, prospective beneficiaries, proposed revenue generating and sustainability models etc. The
eligible proposals received by MHI shall be screened by the Screening Committee constituted under the
scheme (ToR of the Screening Committee may be seen at Annexure-II). Upon recommendation of the
Screening Committee, the proposal shall be submitted for the approval of the Apex Committee (ToR of the
Apex Committee may be seen at Annexure-I). Upon approval granted by the Apex Committee, the MoU
shall be signed amongst the PIO, Industry partner and MHI as per Appendix A. For each project approved,
a Project Review and Monitoring Committee (PRMC) shall be constituted for reviewing the progress of the
project at fixed intervals. (ToRs of the PRMC have been placed at Annexure-III).
4.6 Setting up of ten Industry Accelerators for Technology DevelopmentThis initiative aims to actively involve local industries in the process of product development, using
indigenous technology, in partnership with premium research/academic institutions (Accelerators) in the
forefront of industrial innovations. These accelerators will identify domains and Select companies into
cohorts (based on the present basket of imports – by value /volume / criticality) and facilitate the
development of products and processes, as per their requirement.
Each Accelerator will work with the established CoEs, CEFCs, Technology Innovation Portals and will act
through mentors and other collaborators to enable the companies to develop new products with associated
business strategies and marketing plans. The CoEs and the CEFCs will provide the capital infrastructure for
the accelerator to be used on a need basis for prototyping, testing and validation. The technology portals
will be used to connect to potential resource/vendor base for the supply chain for the product being
developed. Each accelerator will run 1 cohort each for the 2.5years period of the scheme. Each Cohort will
consist of 8 to 10 companies and will run for a cycle of 2.5 years. It is expected that at least 100 new
indigenous products/technologies will be commercialized by the end of the scheme period.

4.6.1 Eligible entities for funding-

(i) Reputed R & D/Academic/ Scientific Institution;
(ii) Industry Associations
It is mandatory for all applicants to register on the MHI Technology Innovation Platforms set up under the
MHI CG Scheme.

4.6.2 Eligible technologies- The accelerator will identify sub sectors for intervention in the fields Capital
Goods and auto sector and Select companies into cohorts based on the present strength of domestic Capital
Goods industries and facilitate the development of commercially viable indigenous technologies/ products.
4.6.3 Funding pattern- GoI will provide grant for 80% of the cost of development, for a cohort as
projected by an accelerator. 20% cost will be contributed by the participating industries. However, within
the cohort, contribution by private industries may be decided industry wise based on the criticality of the
technology/product, complexity of development cycle, cost intensiveness, commercially viable import
substitution/ export potential and financial strength and past performance of the participating company
within the 20% funding from the Industries. The accelerators will be provided with appropriate financial
assistance to meet administrative expenses for the coordinating, monitoring and evaluating activities
undertaken by them for the Cohort. MHI will fund each accelerator for upto 80% of the cost of
development of the technology. The distribution of funds amongst the cohort shall be done by the
accelerator. GoI grant will not be given for meeting the cost of land and building. The funding shall be
subject to approval of the Apex Committee constituted under the scheme. The decision of the Apex
Committee shall be final in this regard.
4.6.4 Payment Schedule- Disbursement of grants for the projects shall be in accordance with the
milestones laid down in the MoU signed for the project by MHI with the Accelerator, who shall be the
Project Implementing Organization (PIO).
4.6.5 Mechanism: The applicant(s) shall submit the application form along with the Detailed Project
Report (DPR) in the prescribed format (Placed at Annexure –VII) containing the details relating to the
focussed domain, products identified for development, import substitution/ export potential of the targeted
products for development. The eligible proposals received by MHI shall be screened by the Screening
Committee constituted under the scheme (ToR of the Screening Committee may be seen at Annexure-II).
Upon recommendation of the Screening Committee, the proposal shall be submitted for the approval of the
Apex Committee (ToR of the Apex Committee may be seen at Annexure-I). Upon approval granted by the
Apex Committee, the MoU shall be signed between PIO & MHI as per Appendix-A. The accelerator shall
select the industries and group them into cohorts. Each cohort shall consist of 8 to 10 companies and will
run for a cycle of 2.5 years. A technical committee shall be constituted by each accelerator that shall be
responsible for selecting the industries, grouping them into cohorts, approving proportional financial
contribution by them and selecting technologies for development. The terms of reference and constitution
of the technical committee is placed at Annexure. IV.
5. General Conditions for implementation of scheme:
a. All expenditure under the Scheme shall be made by PIOs in accordance with GFR 2017 and the Terms
and Conditions of the MoU signed with MHI.
b. The PIO shall not dispose of or lease out or create any charge over the assets created by utilizing the
assistance provided under this scheme, without written permission from the MHI.
c. The PIO shall not change the form or the basic objectives/ outputs/ outcomes of the approved proposal,
without prior approval of MHI. The objectives/ output/ outcomes of the assisted project indicating its
objects shall not be amended without recommendation of PRMC and further written permission of MHI.
The financial assistance provided under this scheme would be of non-recurring and capital nature. Funds
may not be used directly to pay salaries and allowances etc. for the institute‘s faculty, staff or
administrators. However, services may be charged to the Centres.
d. All PIOs shall open a new saving bank account in a public sector bank for the receipt of financial
assistance from MHI.
e. The accounts of the PIO shall be audited every year and the PIO shall be required to submit annual
financial statements to MHI, at the end of each financial year.
f. The PIO shall be required to maintain a fixed assets register of equipment/assets procured by utilizing
grant funds for verification by MHI at any time. In case of failure to utilize the sanctioned funds within
time or its misuse, misappropriation or diversion or violation of any one or more of the conditions
mentioned above, the Government will be entitled to recover the entire assistance amount with interest, in
addition to taking such other legal action, as necessary as per GFR/Govt. orders.

g. Central Government may also prescribe such other conditions, as necessary, before sanction/release of
assistance.

6. Application and Approval Procedure

a. MHI will endeavour to plan, design and implement an online system to receive process, approve and
monitor the proposals under the scheme.
b. The applications in the prescribed format along with Detailed Project Report for the targeted
technology/ facility proposed under the scheme shall be submitted to the Under Secretary (HE&MT) in
MHI.
c. MHI (HE&MT) shall process the applications within 30 days for their completeness and submit them to
the Screening Committee for consideration.
d. The Screening Committee shall examine all the proposals received under the scheme and submit its
recommendations within a month to the Apex Committee.
e. The Committee may choose to hold consultations with the applicants, visit the facility of the PIO, before
coming to a decision. The applicant may be given chance to make presentation of his proposal to the Apex
Committee subject to its convenience.
f. Subsequent to the approval of the proposal by the Apex Committee, an approval letter shall be issued to
the PIO. MoU has to be signed between the PIO and MHI within one month of the receipt of the Approval
Letter.
g. The release of funds shall commence after signing of the MoU as per the laid down conditions therein.
h. It will be the endeavour of the Ministry to communicate final decision within three months from
receiving the completed application.
i. Under the Industry Accelerator Component of the Scheme, after the approval letter is issued, Accelerator
shall convene the meeting of the Technical Committee for selection of cohort and submit the details of the
Industries so selected to MHI within a month of receipt of the approval letter.

7. INTELLECTUAL PROPERTY RIGHTS

7.1 The ownership of IPR generated during the development of the technology under the MHI CG scheme
shall vest jointly in the PIO, Industry Partner and MHI.
7.2 Lock in period- The IP/ technology developed shall not be transferred to any third party from date of
completion of technology development for the period which may vary from three to five years as
mentioned in the MoU for the sanctioned project, the technology shall be exclusively used by the Industry
partner for commercialisation and further technological upgradation. Responsibility of commercialization
of technology developed rests with industrial partner. However, MHI will facilitate and provide all
possible assistance excluding financial support to the industry partner for commercialisation of developed
technology.
7.3 PIO, Industry partner and MHI shall retain perpetual right and royalty free, non-exclusive license of the
IP to use throughout the project after the lock in period as mentioned in the MoU or till the expiry of IP
rights as per law.The PIO may use the technical know-how for research purposes, however, the PIO shall
not share the technical know- how, details and design of the technology so developed with any third party
within the lock in period॰
7.4 To realize the aim of dissemination of newly developed technologies under the Scheme to Industry, PIO
shall act as the custodian of the IP rights on behalf of MHI and shall be able to transfer them to any third
party after the lock in period, with the consent of MHI.
7.5 Royalty sharing model- Revenues from licensing of IP rights to third parties shall be shared between

PIO and MHI. The royalty sharing model in case of licensing of technology/ know-how/ IP shall be as
follows:

PIO-80%  Service Account (MHI) 20%

Money in the Service Account (joint account of PIO and MHI) may be used for the promotion and
upgradation of the invention, maintenance of the IPRs. Unused funds from the service account will be used
for promotion of commercialization, IP protection and any other related activities. All decisions in this
regard may be taken by MHI and PIO mutually.
* IP Management fund- PIO shall be responsible for the management of the IP. The PIO shall utilize
funds out of the earned revenues (80% share in royalty), for any activity relating to commercialisation and
maintenance of IPR or obtaining IPR in any other country, or for capacity building in the area of IP
protection, annual maintenance etc.
7.6 National Research Development Corporation or any other organisation selected by MHI shall help in
bridging the gap between the level of technology developed and the actual industrial requirement.
Organisation so selected shall assess the technology for its commercial potential and may suggest measures
for taking suitable IP protection.
7.7 Filing of IPR applications: All the IP applications shall be filed by the PIO. However, in case of any
unreasonable delay, failure on the part of the PIO, NRDC or any other organization selected by MHI shall
be given the responsibility of filing the IP application on behalf of the PIO. NRDC/any other organization
selected by MHI shall charge the PIO for any support provided in this regard. In case the IP/ patent is being
filed through NRDC/any other organization selected by MHI, all the forms that are mandatory for filing the
Patent/ IP shall be submitted to NRDC/ any other organization selected by MHI after being duly executed
by the joint IP holders.
7.8 In case, where the Industry partner fails to commercialize the technology/ product within a stipulated
period, the technology shall be assigned to National Research Development Corporation/any other
organization selected by MHI for arranging commercialization. Organisation so selected shall prepare
technology profiles on each technology assigned giving non-critical information for publication and
communicating with target industries. That organization shall prepare detailed offer letter for taking up the
commercialization activities and a MoU may be signed between the selected organization, Industry Partner
and PIO. The revenue sharing model in such a case may be decided on a case to case basis, as and when
required. As the Start ups are an important part of technological innovation ecosystem in the country, IPR
model of the scheme will be suitably modified, to include their contribution, if they participate in the CoE
or Accelerator components of the scheme and contribute towards the creation of such intellectual property.
Startups will be defined as per DPIIT guidelines.
8. COMPOSITION OF THE SCREENING COMMITTEE
The constitution and terms and reference of the Screening Committee are at Annexure -II
9. COMPOSITION OF THE APEX COMMITTEE
The constitution and terms and reference of theApex Committee are at Annexure –I.
10.SCHEME/ PROJECTMONITORING AND EVALUATION
10.1 The constitution and terms and reference of the Project Review and Monitoring Committee (PR&MC)
are at Annexure –III.
10.2 The Project Review and Monitoring Committee (PR&MC) shall regularly monitor the progress of the
project assigned to it including through online tools. Periodic meetings of PRMC at least once every three
months during the project tenure shall be organized by the PIO. The PIO shall submit the quarterly progress
report of the project to the PRMC and PRMC shall review and monitor the physical and financial progress
of the implementation of the projects and submit their report and recommendations to the Project
Implementing Organisation (PIO) and MHI. PRMC can also recommend specific modalties / procedure to
be followed for release of funds to PIO by MHI within the framework of GFR, 2017, if so required for the
proper implementation of any project.
10.3 MHI shall undertake a third party evaluation of the scheme/ component thereof on completion of the
sanctioned projects.

11. Procedure for Closure of projects

11.1 A project shall be considered to have been completed when all the outcomes and outputs have been
achieved.

11.2 The PIO shall mandatorily organise the final PRMC meeting before reporting project completion to
MHI. On site physical verification of the project is mandatory to be conducted by the PRMC during the
final PRMC meeting.
11.3 The PIO shall submit a Project Completion Report (Technical, Physical and Financial) (both hard
copy and soft copy) to Under Secretary MHI along with the minutes of the final PRMC meeting
recommending closure. The project completion report shall also consist of detailed designs, drawings,
specifications and documents relating to the Technical Know How of the technology developed.
11.4 MHI shall grant the ―Certificate of Project Completion‖ to the PIO after satisfactory evaluation of the
project completion report. JS/ AS, HE& MT shall act as the final authority for sanctioning the ―Certificate
of Project Completion‖.

NIDHI CHIBBER, Addl. Secy


MEMORANDUM OF UNDERSTANDING

MEMORANDUM OF UNDERSTANDING (MoU) BETWEEN THE MINISTRY OF HEAVY
INDUSTRY (MHI), Ministry of Heavy Industries, GOVERNMENT OF INDIA and ………… (Name of
the PIO) for development of ………………… (Name of the project) namely ―…………..‖ under the
component ‗……………….‘of the Scheme for ―Enhancement of Competitiveness in the Indian Capital
Goods Sector Phase-II‖ (hereinafter referred to as the Capital Goods scheme-Phase-II) of MHI,
Government of India.
This MoU for the development and execution of …….. (Name of the project) (hereinafter referred to as the
―Project‖) is signed on this …………………….(day) of …………………. 2022 between the parties, namely:
The Ministry of Heavy Industries, Government of India, having its office at UdyogBhawan, New Delhi
(hereinafter referred to as MHI which expression shall, where the context so requires or admits, be deemed
to include its successors and permitted assignees) of the first part.
And
…………….(Name of the PIO) having its registered office at ………………………………….(herein
after referred to as in short as PIO, which expression shall where the context so requires or admits, be
deemed to include its successor and permitted assignees) of the second part.

The Ministry of Heavy Industries (MHI) and …………… (Name of the PIO) are referred to individually as
a “Party” and collectively as “Parties.‖
Whereas, MHI has approved in the ………… Apex Committee meeting held on ……………..for a
Government of India grant of ……………… for development of ………….. (Name of the project) under
the ‗………………….‘ component of the Scheme for ―Enhancement of Competitiveness in the Indian
Capital Goods Sector Phase –II ‖ of MHI, Government of India.
Now it is agreed by and between the parties that the project would be executed (within the following
Definitions, Objectives, Scope, Deliverables and the Responsibilities of each of the implementing agencies.
1. DEFINITIONS
a. ―Capital Goods scheme-Phase-II‖ means Scheme for ―Enhancement of global Competitiveness of
Indian Capital Goods Sector- Phase- II‖ of Ministry of Heavy Industries, Government of India as indicated
in Notification No..……..- HE&MT dated ………….published in the Gazette of India (Extraordinary) Part
I, Section 1, No………..
b. ―Project‟ means project proposed by ……………… (Name of the PIO), under the ‗………….‘
component of the Capital Goods scheme-Phase-II and approved by the Apex Committee formed under the
Capital Goods scheme-Phase-II in its meeting dated……………namely ―…………………‖.
c. ―Project Implementing Organization‟ (PIO) shall mean that ………………..(Name of the PIO) is
responsible for implementing the Project as indicated at (b) above.
d. ―Funding Organizations‟ shall mean MHI and the Industry Partner supporting the project financially to
the extent of maximum 80% and minimum 20% of the project cost respectively.
e. ―Apex Committee‖ (AC) on Capital Goods scheme-Phase-II will be hereinafter called AC-CG Scheme.
Secretary, MHI is the Chairman of Apex Committee and Additional/Joint Secretary (HE & MT), DHI is the
Member Secretary. Apex Committee, constituted by the Government of India is the final approving
authority under the Capital Goods scheme-Phase-II and will also review the progress of the project
biannually.
f. ‗Parties‘ refer to the organizations participating in the project namely MHI and ………
g. ―Approval Letter‖ shall mean the letter No. …………….- HE&MT dated …………. communicating
detailed terms and conditions of the approval of the competent authority in Ministry of Heavy Industries
for the Project.
2. OBJECTIVE
The objective of the development of the ………………………. (Name of the project) is
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
………………………………………………………………………………………………………………
…………………………………………………………
3. PLAN, METHODOLOGY AND WORKING PROCEDURE:
The proposed ……………. (Name of the component) is required to
facilitate………………………………… The methodology and working procedure for the
……………………. (Name of the project) shall be as per approved DPR, appended to this MoU which
shall be a part of the MoU:
4. PROJECT SCHEDULE/MAJOR MILESTONES& OUTPUT:
4.1 The project work on the development of …………………. shall be completed by ……………. The
milestones and outputs (description and quantification to be given in tabular format) shall be as per
approved DPR, appended to this MoU which shall be a part of the MoU.

5. MODE OF FINANCING:
5.1 The project cost will be jointly funded by the Ministry of Heavy Industries, Government of India
(MHl) and the PIO (Project Implementing Organization). Overall ratio of MHI funding and PIO
contribution will be at the ratio of 80 (maximum):20 (minimum). The total project cost is Rs. cr. out of
which MHI contribution will be limited to a maximum of up to 80%, i.e. Rs. cr. and the rest will be
contributed by the Industry Partner. 10 % of the sanctioned MHI grant shall be disbursed as Advance
Mobilization fund to the PIO immediately after signing of the MoU which shall be subsequently adjusted
against the amount of the 1st instalment that shall be released after the matching contribution has been made
by the Industry Partner in the designated savings account. For subsequent installments, the PIO should first
deposit and confirm pro rata Industry contribution in the designated Saving Bank Account (in a public
sector bank) for the Project to MHI before the Grant in Aid is disbursed from MHI.

The financial details are as given below:

5.2 Fund will be released by MHI in the designated Saving Bank Account opened in a public sector
bank for the ………….Project after receiving confirmation of contributions by the PIO. Release of fund
will be subject to the fulfillment of terms and conditions of the MoU, Capital Goods Scheme Phase-II
Gazette Notification dated……. and the relevant Government Orders/ General Financial Rules 2017.
5.3 MHI Budgetary grant will be released in ………… installments. The Utilization of budgetary grant
will be subject to and in compliance of terms and conditions of the MoU. The PIO shall submit the
documents as per the check list (Annexure –B) at the time of release of the each installment of MHI grant:
5.4 Release of the mobilization funds and installments of GOI Grant shall be released after signing of
MoU by the Grantee Organization with MHI and subject to fulfillment of formalities associated with
release of Grants- in- aid in accordance with Government Rules and instructions. Release of subsequent
installments shall be subject to satisfactory utilization of the Grant-in-aid by the Project Implementing
Organization (PIO), completion of defined milestones and outcomes/ outputs as per target, and
recommendations of the PRMC.

6. FINANCIAL & FUNDING PARAMETERS OF THE PROJECT

6.1 The project is partly funded by MHI under the CG scheme through grant in aid and the remaining is
funded by the Industry partner. The total approved financial outlay of the project as per approved proposal
is Rs.………cr. This is the total cost of the investment towards development of the ……………(Name of
the project). The grant in aid amounting to maximum of 80% of the Project cost and limited to Rs…….
should be utilized for the purposes of …………….. (Name of the component) only. Utilization of the grant
in aid would result in output wise achievement of the targets as indicated in paragraph 4 above.

6.2 Unless otherwise specified, funding by the Ministry of Heavy Industries to the PIO will be governed
by the relevant provisions of General Financial Rules (GFR) read with the MHI Notification dated
……………..on Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector, Phase II,
published in the Part I Section I of the Gazette of India Notification (Extraordinary) dated ……… bearing
no. ……….- HE&MT (as amended time to time by the GoI) and other Government orders and will be
subject to terms and conditions of the MoU.

7. ROLE AND RESPONSIBILITIES OF PROJECT IMPLEMENTING ORGANIZATION

(PIO) also known as Grantee Organization which in the instant case is …………………………
7.1 The Project Implementing Organization (PIO) shall be responsible for timely delivery of the output
subject to timely receipt of funds from both MHI and others.
7.2 The PIO shall maintain a separate saving bank account in a public sector bank for the project for the
funds released by MHI for execution of this project.
7.3 Grant on Aid shall not be used for construction of land or/and construction of building.
7.4 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 Annexure-A.
7.5 The PIO shall ensure that the funds released are utilized only for the purpose of the project. The PIO
shall submit a quarterly utilization report and shall submit an Audited Statement of Accounts annually as
per DoE guidelines ………………, as amended from time to time by the Government of India.
7.6 The PIO shall provide free access to MHI Officers (or nominees / representatives) and the Apex
Committee- Capital Goods Scheme Phase-II members and their representatives to all facilities/ assets and
their records relating to the project.
7.7 The PIO shall also be responsible for achieving and regular reporting of the progress of the project
to PRMC as per milestones laid down in the MoU.
7.8 The PIO shall maintain a fixed asset register of permanent and semi-permanent assets including the
web development software tools, cloud space hiring, servers, compilers, network hardware‘s and
accessories, software testing tools/Apps acquired out of the grant-in-aid/ their own contribution as well as
log for use of them. The PIO should maintain proof of having procured genuine new software 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 Ministry of Heavy Industries.
7.9 The utilization of assets so created shall be in public interest and shall be the responsibility of the PIO
as per the extant guidelines of the CPSE/ Autonomous Bodies/ GFR 2017.
7.10 The PIO will ensure that assets will not be disposed-of/ sold/ transferred/ leased/ rented/
transferred without prior approval of Ministry of Heavy Industries.
7.11 The PIO will not add MHI grants into the revenue formula, while determining the user charges/ fees.

7.12 The PIO will ensure that the infrastructure created is available to the Capital Goods and auto sector
units particularly those belong to Micro, Small and Medium Enterprises sector to enable them to become
globally competitive.
7.13 The PIO shall also be responsible for adhering to law of the land including rules of central, state and
local Governments in its operation.
7.14 The PIO shall indemnify and protect the Government of India from all costs, 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.
7.15 The PIO will adhere to 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.
7.16 In case the PIO proposes to import any equipment/part, software, etc. for the purpose of the project
in India, all duties related to such imports shall be paid directly by the PIO to the concerned authorities.
MHI 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.
7.17 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 case
of loss or damage of such machinery and equipment, etc. the insurance benefit will be payable to the
Government of India.
7.18 PIO shall ensure quality documentation/ photographs and video recording of all milestone activities
and present the same during monitoring by PRMC.
8. MANDATORY OBLIGATIONS
8.1 It is obligatory on the part of PIO i.e. ,to ensure free access to Apex Committee members, Screening
Committee Members/ MHI officials / its representatives to all facilities/ assets and records relating to the
project located at their works.
8.2 The PIO shall duly acknowledge MHI for funding this project in all publications, reports, publicity,
presentations materials, assets/ facilities created, events, etc. including on their portal / website and
elsewhere.
8.3 The PIO shall furnish all deliverables of the project such as full documentation pertaining to
………. (Name of the project) (including machinery and equipment), design etc. to MHI. The PIO shall
have to submit all drawings, details and technical know- how of the targeted technology to MHI while
requesting for closure.
8.4 PIO shall follow the terms and conditions of IPR agreement appended to this MoU at Annexure -C,
which shall be a part of this MoU.
8.5 The assets/ machinery acquired/ facilities created by the PIO wholly or substantially out of
Government grants, except those declared as obsolete and unserviceable or condemned in accordance with
the procedure laid down in the GFR 2017 shall not be disposed-of, encumbered or utilized for 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 as per provisions of Companies Act 2013, all the assets
acquired to that effect out of the grants by the Ministry should be returned forthwith to the Government of
India as per policy laid down by GoI and amended from time to time. The GoI shall have all rights to
dispose of the returned assets as per GoI policy in that regard, as amended from time to time.
8.6 The yearly audited accounts of the PIO will have to be submitted to the Ministry by the grantee within
stipulated period of the close of the succeeding financial year of the grantee if the non-recurring grant is
Rs.50 lakhs and above as one-time assistance as per Rule 238 of GFR, 2017, as amended from time to time.

8.7 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 Ministry of Heavy Industries whenever the grantee institution PIO is called upon to
do so/
8.8 The PIO is required to submit a performance-cum-achievement report within a period of one month
after the end of each financial year along with an audited statement of accounts of the project as per Rule
238 of GFR, 2017, as amended from time to time.
8.9 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 a source of profit, then the PIO shall
forthwith refund the amount of profit generated to the Government of India.
* Source of profit- Profit/ income generated by the PIO by utilizing the resources (machinery and other
assets) that have been purchased out of Govt grants, for purposes that do not form part of the project scope.
8.10 The grantee organization shall not utilize the interest earned on the recurring/ non-recurring grants in
aid, released to it for any purpose. The interest earned shall be indicated in the Utilization Certificate (UC)
and to be refunded to the Ministry of Heavy Industries after the end of each financial year as per Rule
230(8) of GFR, 2017, as amended from time to time.
8.11 The PIO shall not incur any expenditure on those items, the purchase of which have been banned by
the GoI.
8.12 In the case of Voluntary Organizations, before a Grant is released, the members of the Executive
Committee of the Grantee need to Execute Bonds (Execution of Bond will not apply to Quasi-Government
Institutions, Central Autonomous Organizations and Institutions whose budget is approved by the
Government) in a prescribed format binding themselves jointly and severally to:-
a) Abide by the conditions of the Grants in-aid by the target dates, if any, specified therein; and
b) Not to divert the Grants or entrust execution of the scheme or work concerned to another Institution(s) or
Organization(s); and
c) Abide by any other conditions specified in the agreement governing the Grants-in-aid.
d) In the event of the Grantee failing to comply with the conditions or committing breach of the conditions
of the Bond, the signatories to the Bond shall be jointly and severally liable to refund to the President of
India, the whole or a part amount of the Grant with interest at ten per cent per annum thereon or the sum
specified under the Bond.
8.13 In the event of any liquidation or bankruptcy proceedings against the PIO, the assets; machineries
and equipment, software / hardware procured for the purpose of the Project by the PIO 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.
8.14 It is mandatory on the part of the PIO to register self and all Participating Organisations in the
project on Public Financial Management System (PFMS i.e. http://www.pfms.nic.in) for receiving Government
grant sanctioned to them and also tracking fund flow, unspent balances, etc. till last level of implementation
of the project. The PIO is also required to submit data on Unspent balance in respect of the project on every
last day of the month for which Government grant released.
8.15 It is mandatory on the part of the PIO to register on any of the six Technology Innovation Portals
developed by CMTI, IIT Madras, ICAT, ARAI, HMT-IISc Bangalore and BHEL.
8.16 The PIO shall not change the form or the basic objectives/ outcomes/ outputs of the project without
prior approval of MHI. The objectives of the assisted project shall not be amended without written
permission of the concerned JS/ AS , HE & MT Section.
9. ROLE AND RESPONSIBILITIES OF PROJECT COORDINATING ORGANIZATION —
MHI
9.1 MHI will approve and provide the grants and review the progress of the project.

9.2 MHI would release the funds to the PIO i.e……………… in the designated savings Account for
execution of the project based upon the financial, technical and physical progress of the project and
recommendations of the PRMC.
9.3 MHI 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.
9.4 MHI would be free to use the equipment/ facilities; software procured/ developed for any scientific
work or technology development/ demonstration purpose on their own or can request the PIO for use of this
infrastructure/software/hardware by any other organization/ agency or manufacturer for scientific
technology development/ demonstration for public purpose.
9.5 MHI 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.
9.6 All correspondences for communication shall be addressed to Additional/ Joint Secretary (HE & MT),
MHI who shall be the contact person for all matters concerning the project.
10. MONITORING PROGRESS
10.1 The PIO will furnish the progress (Physical/ 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
………..of the Scheme Guidelines. For the purpose of furnishing quarterly reports, the first 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.
10.2 MHI will constitute a Project Review and Monitoring Committee (PRMC) involving representatives
from MHI, PIO, Industry Association, user industry and domain experts from outside to regularly review
and guide the project team.
10.3 PRMC constituted for each project will monitor the progress of the project with reference to the
milestones specified in the project schedule and quarterly progress report submitted by PIO.
10.4 Grants linked to milestones will be released after recommendation of the PRMC of the reported
progress and request of grant release.
10.5 Annual Reports of the Project will also be submitted along with financial year end Utilization
Certificates.
11. PROJECT REVIEW BY APEX COMMITTEE OF THE CAPITAL GOODS SCHEME -II
11.1 The Apex Committee will review the progress of the approved projects biannually.
11.2 PIO and beneficiary units may be invited during progress review at Apex Committee.
11.3 For the purposes of monitoring, MHI may send its own teams for physical verification.
11.4 The monitoring may bring out need for changes in approval of the project, which may be considered
by the Apex Committee on their merits without changing the objective of the project.
12. FUND UTILIZATION CERTIFICATE (UC) AND PROJECT ACCOUNTS
12.1 Before the release of subsequent grant, PIO shall submit the Fund Utilization Certificate (UC) in the
specified format (Form GFR 12A) (Rule 238 (1) of General Financial Rules 2017) along with progress
report and a certified copy of project account statement duly remarked / reconciled.
12.2 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‖.
12.3 The UC in respect of utilization of grants for the purpose/ 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 in which Grant-in-Aid is released or while making request for release of fund.
12.4 The project accounts will be maintained as per the Govt. Orders/ General Financial Rules (GFR
2017) and best practices. Name/s of authorized signatories will be informed to MHI.
12.5 The Accounts duly audited by external auditors shall be forwarded to MHI at the end of each
financial year.

12.6 Unspent balances/ bank interest / other earning will be taken into account in the Project. All
investment returns received on account of MHI funds shall be mandatory reported by the PIO to MHI will
be counted as MHI grant within the overall sanction. The UC will contain statement of such income.
12.7 Grants / bank interest spent on purposes other than sanction will attract penalties on case to case
basis and other punishments as per the provisions of law of the land.
13 PROJECT COMPLETION & TECHNICAL REPORT
13.1 A project will be considered to be completed when all outcomes/ outcomes and milestones have
been achieved and certified by Project Review and Monitoring Committee (PRMC).
13.2 The PIO will report the project closure to the Additional/Joint Secretary (HE&MT), MHI through
PRMC.
13.3 The AS/ JS, HE & MT division will finally approve the request of the project completion on PRMC
recommendations.
13.4 The PIO shall submit a Project Completion Report (Technical cum Financial) along with a soft copy
to MHI within one month of the completion of the project. The PIO shall also furnish the feedback,
suggestions, report of IPRs generated along with the project completion report. Such completion reports
will be used for Capital Goods Scheme Phase-II evaluation and drafting Roll-out of further Phase of the
CG-Scheme.
13.5 It should be the endeavor of the PIO to complete the project in the prescribed timelines. However, in
case of unavoidable circumstances leading to project time overruns, the same will have to be justified to
PRMC by the PIO and PRMC may submit their recommendations to MHI, in this regard. The time and cost
overruns shall be considered only under special circumstances specified by PIO on a case to case basis. For
time overruns AS/JS, HE & MT, MHI and for cost overruns Apex Committee shall be the final authority
and their decisions will be binding to PIO.
13.6 All decisions of Apex Committee will be binding on the PIO and Industry Partner.
14. CONFIDENTIALITY
14.1 The PIO will maintain strict confidentiality and prevent the disclosure of all information and data
exchanged/ generated pertaining to work assigned under this MoU till the completion/ commissioning of
the project except with prior consent of MHI.
14.2 The above condition is subject to RTI and other laws of the land.
15. STATUTORY REQUIREMENTS
15.1 Implementation of the Project 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 there under by the either Central or respective State
Governments.
15.2 Since the project is sanctioned to the PIO, it shall not be transferred to any other Institution. The
transfer of project money within the Institution or with other Institutions under the same Management is not
permitted under any circumstances.
16. FORCE MAJEURE
16.1 None of the participating parties shall be held responsible for non- fulfillment of their respective
obligations under this MoU due to the exigency of one or more of the force majeure events, such as but not
limited to, acts of God, war, 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.
16.2 If the force majeure conditions continue beyond six months, MHI and the PIO shall then mutually
decide the future course of action.
17. VALIDITY OF MOU
The MoU comes into force on the date of issue and is valid till 31st March 2025 from the date of issue or till
the date of issue of Project Closure Certificate by MHI whichever is later.

18. AMENDMENTS TO THE TERMS & CONDITIONS OF MOU
No amendment or modification of the terms and conditions shall be valid unless the same is made in
writing by MHI and the PIO or their authorized representatives and specifically stating the same to be an
amendment of this MoU. On part of MHI approval of the Apex Committee will be a pre- requisite for
making any amendment to this MoU. The modifications/ changes shall be effective from the date on which
they are made/ executed, unless otherwise agreed to.
19. RESOLUTION OF DISPUTES
19.1 In the event of any dispute between MHI and the PIO, in the first instance, the same shall be
resolved by mutual discussion.
19.2 In case the dispute is not resolved mutually, Secretary, Heavy Industries will be empowered to
nominate an arbitrator to decide the dispute. The award made by the arbitrator, shall be submitted to the
Secretary, Heavy Industries, whose decision will be binding on both parties.
20. JURISDICTION
The instant MoU issued by MHI 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.
21. GOVERNING LAW
Notwithstanding anything contained in this MoU, in case of any conflict between any of the provisions of
this MoU with provisions of MHI Notification on Capital Goods Scheme Phase-II dated ……… General
Financial Rules 2017/ and other relevant Government Instruction(s)/ Order(s), as amended from time and
time, the latter will prevail. Right of interpretation of MHI Notification on Capital Goods Scheme Phase-II
dated ……./ General Financial Rules 2017/ Government Instruction(s)/ Order(s) for this purpose shall rest
with the Secretary, Ministry of Heavy Industries.
22. TERMINATION OF THE PROJECT
22.1 MHI 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 60 days of being notified of such a failure, or within such further period as MHI 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 its obligations.
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 MoU.
WITENESS WHEREOF the parties hereto have signed this MOU on the day month and year mentioned
hereinbefore.

Signature
Name
& Designation
Address
Witness 1
Witness 2


%d bloggers like this: