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 development and 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 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. 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 Annexure-III ).

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:

iii. Process Automation and Remote Diagnostic Engineers

iv. Advanced Mechatronics and CNC/PLC Engineers

v. Digital Design & Development Engineer

vi. Cyber Data Security Specialist

vii. Mobile Communication Technologist

viii. Controls & Systems Technologist

ix. Additive Manufacturing Technologist

x. Virtual & Augmented Reality Technologist

xi. Machine Learning Technologist

xii. Artificial Intelligence Technologist

xiii. Manufacturing & Supply Chain Data Analyst

xiv. 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 Development-

This 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 Service Account (MHI)
80% 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 the Apex 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.

Annexure-I

The constitution and terms and reference of the Apex Committee

The constitution of the Apex Committee shall be as given below:

Secretary, Heavy Industries, MHI Chairman
AS & FA, MHI Member
Prominent Industrialists from Capital Goods sector (2 from large and two from SME sector) Members
Adviser (Industry), NITI Aayog Member
Representative of DPIIT not below the rank of Joint Secretary Member
Representative of Department of Scientific & Industrial Research (DSIR) not below the rank of Joint Secretary Member
Representative of Ministry of Human Resource Development not below the rank of Joint Secretary Member
Representative of NRDC Member
Director General, Bureau of Indian Standards Member
Director General (Mines & Safety) Member
Director General (CII) Member
Director General (FICCI) Member
Chairman, State Bank of India Member
2 Technical Experts To be invited as per requirement
2 Financial Experts To be invited as per requirement
AS/ JS (HE&MT), MHI Member Secretary

Terms and reference of Apex Committee

a. The Apex Committee shall be responsible for the final approval of the projects, reviewing the progress of the projects or any other issues pertaining to the Scheme which needs approval of the Committee.

b. The Apex Committee may co-opt and /or invite additional subject experts on need basis.

c. The Apex Committee shall meet bi- annually or as and when necessaryto consider the project proposals recommended by Screening Committee and also to review the progress of the sanctioned projects.

Annexure-II

The constitution and terms and reference of the Screening Committee

The constitution of the Screening Committee shall be as given below:

i. Additional Secretary (HE&MT)/ Joint Secretary/, MHI Chairman
ii. Economic Adviser, MHI Member
iii. Nominee of M/o, MSME Member
iv. Nominee of D/o Science & Technology Member
v. Director (IFW-DHI) Member
vi. Nominee of other relevant Ministries/ Departments as required necessary Member
vii. Technology Experts (three) as required Member
viii. Representative of National Research & Development Corporation Member
ix. Director/ DS (HEMT – MHI) Member Secretary

Terms and reference of Screening Committee

a. The Committee shall be responsible for scrutinizing and screening of the proposals and submitting its report to the Apex Committee and also for any other work entrusted by MHI.

b. The Committee may co-opt/ invite/ involve subject expert/s on need basis under the empowerment accorded to the Secretary (HI).

c. It may call the applicant for presenting the proposal and or visit the applicant‘s premises to assess the feasibility of proposals submitted under the scheme.

d. The Screening Committee shall meet at the beginning of each quarter or as and when necessary to review the project proposals received.

Annexure-III

The constitution and terms and reference of the Project Review and Monitoring Committee (PRMC)

The constitution of the PRMC shall be as given below:

S.No. Member/ Chairperson Designation
1. Senior Technical Industry Expert (Nominated by MHI) Chairperson
2. Technical Expert (Nominated by MHI) Member
3. Technical Expert (Industry   expert) (Nominated  by   Industry Association) Member
4. Financial Expert Member
5. Representative of National Research Development Corporation (NRDC) or any other organization selected by MHI for support in commercialisation/ IPR Member
6. Technical experts of the PIO Member
7. Representative of MHI Member

The terms of reference of PRMCs are detailed below:

i) The Project Review and Monitoring Committee (PRMC) will ensure that the terms and conditions of MoU and sanctions for release of Grants by the Ministry of Heavy Industries, GoI are being met by PIO.

ii) The PRMC will periodically review and monitor the physical and financial progress of the implementation of the projects and submit its report and recommendations to PIO and MHI. Periodic meetings at least once every three months during the projects‘ entire duration will be conducted.

iii) The PRMC will recommend, modify, or reject any deviation from the project proposals- submitted to the MHI by the Project Implementation Organization vide their letters after due examination and analysis.

iv) 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.

v) The PRMC will also execute any other task that is assigned to it, from time-to-time by MHI.

vi) The tenure of the PRMC will be co-terminus with that of the project, i.e. with effect from the date of issue of the Office Memorandum notifying its constitution.

vii) The Chairman of the PRMC shall have the authority to co-opt members as and when required, and shall also have the authority to call for emergency meetings of the PRMC, even when they are not due.

viii) Special invitees can be invited to attend the meetings of the PRMC, with the prior consent of the Chairman, PRMC.

ix) The members of the PRMC shall be eligible for token honorarium as decided by each day of the meeting attended.

2. Tenure of PRMC:

The tenure of the PRMC will be co-terminus with the duration of the project.

3. Payment of Travel Expenses and Honorarium:

i) The Chairman and non- officials member of PRMC shall be paid travel by air (economy class), or by train or by road and daily allowances, as per the existing rules of the Government of India and provided all necessary logistics for their stay at the venue of meetings, by the PIO.

ii) The Chairman and non- officials members of the PRMC may be paid honorarium by the PIO.

4. Confidentiality:

Chairman and the members of the PRMC will maintain strict confidentiality and avoid disclosure of any information or data concerning the projects, sanctioned by MHI without the consent or authorization of MHI and PIO.

Annexure-IV

The constitution and terms and reference of the Technical Committee (Under Industry Accelerator)

The constitution of the technical committee shall be as given below:

S.No. Member/ Chairperson Designation
1. Senior Technical Industry Expert (Nominated by MHI) Chairperson
2. Technical Expert (Nominated by MHI) Member
3. Technical  Expert   (Industry   expert)    (Nominated  by   Industry

Association)

Member
4. Financial Expert Member
5. Representative of National Research Development Corporation (NRDC) or any other organization selected by MHI for support in commercialisation/ IPR Member
6. Representative of MHI Member
7. Representative from the Accelerator Member Secretary

Terms of reference

a. The Technical Committee shall decide on eligible industries to be formed into cohorts, specific technologies/products to be developed and proportional financial contribution by them.

b. For each accelerator approved under the Scheme, the above Technical Committee shall be designated as PRMC after selection of the industries is complete. The Terms of Reference as enclosed at Annexure III shall be applicable for Technical Committee after being designated as PRMC.

Annexure-V

Scheme for enhancement of competitiveness in the Indian Capital Goods Industry Phase-II-Application for form for setting up of Centre of Excellence for technology development under the Scheme.

[Applications and enclosures (including DPR) to be submitted in hard copy along with soft copies of the application in prescribed format and DPR (one each in MS Word format and in pdf format)]

Application may be submitted for each technology development projects which facilitates global competitiveness (in the case of more than one technology, separate sheet be filled up)

Please tick off one: New CoE/ Existing CoE

1. Title of the Project
2. Project Implementing Organisation (PIO)
3. Name and contact details of the designated officer of PIO
4. Field of the R & D project and relevance to the Capital Goods (indicate the name of the specific machinery/ equipment )
5. In case of existing CoE, please provide:

Status of Projects Sanctioned in Phase-I

Any other information

6. Present capacity of the PIO to take up new technological development based on this Project
7. Details of industry partner(s) , which would be contributing to the cost of the R & D project

a. Name of the units and field of operations

b. Location of the units

c. Date of Starting operation

d. Annual turnover for the last 3 years

Strength of Personnel in the Applicant Unit /company

8. Information on nature of critical gaps identified
9. Equipment required for implementation of this project with justification, brief specification and item-wise cost
10. Total cost and duration of the Project (not more than 3 years)
11. Means of finance
12. Details of the financial contribution of the Industry Partners
13. Status of availability of land and building for the project
14. Prospects of commercialization of the new technology/ Technical know-how
15. Proposed IP rights to protect developed technology/ products
16. Intended target audience for knowledge dissemination
17. Related R & D, Science & Technology work, if any being undertaken by other(s) in India

Note : A brief note on the objective for development of new technology / Production, methodology, time lines for development, trial & validation and contribution of this new technology/product to Indian Capital goods sector may be submitted, along with detailed DPR.

Annexure-VI

Scheme for enhancement of competitiveness in the Indian Capital Goods Industry Phase-II-Application form for setting up of Common Engineering Facility Center under the Scheme.

[Applications and enclosures (including DPR) to be submitted in hard copy along with soft copies of the application in prescribed format and DPR (one each in MS Word format and in pdf format)]

Please tick off one: New CEFC/Existing CEFC.

1. Title of the Project
2. Project Implementing Organization (PIO)
3. Name and contact details of the designated officer of PIO
4. Nature of service activity, products and proposed location
5. Field of the CEFC project and relevance to the Capital Goods
6. In case of existing CEFC, please provide: Status of Projects Sanctioned in Phase-I

Number of training conducted of year wise and domain wise detail may be furnished.

Any other information

7. Present capacity of the PIO to take up new CEFC Project
8.

 

Details of industry partner(s) , which would be contributing to the cost of the CEFC project

a. Name of the units and field of operations

b. Location of the units

c. Date of Starting operation

d. Annual turnover for the last 3 years

Strength of Personnel in the Applicant Unit /company

 

 

9. Information on nature of critical gaps identified
10. Equipment required for implementation of this project with justification, brief specification and item-wise cost
11. Total Cost and duration of the Project (not more than 3 years)
12. Means of finance
13. Details of the financial contribution of the Industry Partners
14. Status of availability of land and building for the project
15. Revenue generation mechanism for sustainability of assets (service/ user charges to be levied, any other to be specified)
16. Intended target audience for knowledge dissemination
17. Related Common facilities, if any being created by other(s) in India

Note : A brief note on the objective for setting up of CEFC, infrastructure/ services to be provided by, time lines for operationalising the CEFC, details of beneficiary industries aimed to be covered and its contribution to Indian Capital goods sector may be submitted, along with detailed DPR.

ANNEXURE-VII

Scheme for enhancement of competitiveness in the Indian Capital Goods Sector phase II- Application form for setting up of Industry Accelerator under the Scheme

[Applications and enclosures (including DPR) to be submitted in hard copy along with soft copies of the application in prescribed format and DPR (one each in MS Word format and in pdf format)]

1. Name of the accelerator (PIO)
2. Name and contact details of the designated officer of PIO
3. Field of the project and relevance to the Capital Goods
4. Objective, Scope and Output targeted
5. Information on nature of critical gaps identified
6. Total cost and duration of the Project (not more than 2.5 years)
7. Means of finance
8. Physical Targets (year wise)
9. Prospects of commercialization of the new technology/ Technical know-how
10. Proposed IP rights to protect developed technology/ products
11 Whether the technologies developed shall be having a multiplier effect in that particular segment/Industry and what will be the likely impact on the imports.

Kindly submit the projections on reduction of imports for the next 5 and 10 years separately.

Note : A brief note on the objective to be achieved by the project, proposed Industry partners to be chosen and justification thereof, methodology, timelines for development, trials & validation, non technical support for the project & it‘s likely contribution to Indian Capital goods sector may be submitted, along with detailed DPR.

Annexure-VIII

Scheme for enhancement of competitiveness in the Indian Capital Goods Sector phase II- Application form for augmenting the existing testing and certification centers under the Scheme.

[Applications and enclosures (including DPR) to be submitted in hard copy along with soft copies of the application in prescribed format and DPR (one each in MS Word format and in pdf format)]

1 Name of the Project
2 Project Implementing Organization (PIO)
3 Name and contact details of the designated Officer
4 Total Cost of the Project
5 Field of testing & certification and relevance to the capital Goods Industry
6 Present capacity / Pre-requisite of the facility available to take up this project
7 Is the existing testing & certification centre is certified by Competent Authority (Attach Proof)
8 Equipment required for augmenting of this centre with justification, brief specification and item-wise cost
9 Details of the funding of 20 % financial contribution
10 Current demand in Indian market and International Market
11 Existing Clients / beneficiaries details; (both domestic & International)
12 No and kind of industries likely to be benefitted by this augmentation year wise and year wise revenues likely to be generated after augmentation

Note : A brief note on the objective for augmentation of Testing & Certification centre, infrastructure/ services to be provided by, time lines for operationalising the augmented Centre, details of beneficiary industries aimed to be covered and its contribution to Indian Capital goods sector may be submitted, along with detailed DPR.

Annexure-IX

Scheme for enhancement of competitiveness in the Indian Capital Goods Sector phase II-Application form for Development of Qualification Packs (QPs) under the Scheme.

[Applications and enclosures (including DPR) to be submitted in hard copy along with soft copies of the application in prescribed format and DPR (one each in MS Word format and in pdf format)]

1. Name of the Sector Skill Council
2. Name and contact details of the Sector Skill Council
3. Name of the proposed Qualification Pack(s)
4. Need for the development of the proposed Qualification Pack(s)
5. Details of Industry consultation and gap analysis undertaken in this regard
6. Prospective job roles arising out of the targeted QPs
7. Targeted learners
8. Expected outcome and overall impact on the Capital Goods Sector
9. Total Cost and time required for development of Qualification Pack(s)

Note: A brief note on the objective for development of Qualification Pack(s), methodology, time lines for development, contribution of this new Qualification Pack(s) to skilling in the Indian Capital goods sector along with the detailed action plan as per guidelines of Ministry of Skill Development and Entrepreneurship for formulation of QPs may be submitted, along with application.

Appendix-A

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 Udyog Bhawan, 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:

Installments MHI GRANT
(Rs Cr.)
Industry Partner ( )Contribution
(Rs Cr.)
1st
2nd
3rd4th..
TOTAL PROJECT
COST: Rs.

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.

Cost Component Outputs Milestone I Milestone II Milestone III
MHI share Industry Partner share MHI share Industry Partner share MHI share Industry Partner share
A
B.
C
Total

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. 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.

For and behalf of ……. For and on behalf of MHI
Signature
Name & Designation
Address
Witness 1
Witness 2

Annexure -A

TRUST RECEIPT

1. In the matter of the MoU dated………….. of…………… 2021 by the Ministry of Heavy Industries (MHI), addressed to…………………… (Name of the PIO) regarding the Project for (Name of the project) namely………………… for………………………. (Objective).

2. The tangible and intangible assets, the knowledge and know how created, the data generated, the repository of data, resources and technologies the web development software tools, cloud space hiring, servers, compilers, network hardware‘s and accessories, software testing tools/Apps though purchased in the name of……………….. with the funds provided by MHI, for the subject project, will be held in trust with …………………. .during the implementation of the project and thereafter till they are useful for the purpose stated in the MoU.

3. The above as detailed at para 2 will not be transferred or disposed of by us as the PIO without the prior written approval of MHI, and would remain with……….

4. IN WITNESS THERE OF 1. , 2.– , 3— has executed these on….. (day) of……………… (month), …………… (year).

Signed by

Sl. No. Name Occupation & Address Signature
1.
2.
3.

For and on behalf of the…………………….. , in the presence of Witnesses:

Sl. No. Name Occupation & Address Signature
1.
2.

Note- This is a sample MoU/ draft MoU and actual MoU may differ as per requirement of project consultation with PIO of MHI.

Annexure –B

Check list of documents to be deposited for release of MHI Grant

(i) Duly executed bond submitted by private organizations in furtherance of Rule 231(2) and 231(3) of General Financial Rules 2017;

(ii) Pre- receipt;

(iii) Bank Mandate form;

(iv) Acceptance letter by the PIO;

(v) Utilization certificate as per Rule 86(6) of General Financial Rules 2017 (not required in case of first installment and mobilization advance);

(vi) Progress reports against milestones defined in the MoU (not required for first installment and mobilization advance);

(vii) Minutes of the PRMC meeting recommending release of the subsequent installment of the MHI grant.

(viii) 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.

Annexure-C

DRAFT IP OWNERSHIP AND MONETISATION AGREEMENT

THIS IP Ownership and Monetization Agreement (the “Agreement”) is made and entered into on this ______ 2021 (“Effective date”) by and between:

Ministry of Heavy Industries, under the Government of India, having its office at Udyog Bhawan, New Delhi(hereinafter referred to as MHI), which expression shall unless repugnant to the context or meaning thereof, be deemed to mean and include its successors in interest, designates and permitted assignees, as the First Party.

And:

ABCD Ltd. having its registered office at _________________ represented by , (hereinafter called ‘ABCD‘), which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors-in-interest, designates and permitted assignees,as the Second Party.

And

PQR Ltd. having its registered office at _____ represented by____________ , (hereinafter called ‘PQR‘), which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its successors-in-interest, designates and permitted assignees, as the Third Party

MHI, ABCD, PQR are hereinafter collectively referred to as the “Parties” and individually as a “Party”.

RECITALS:

A. Ministry of Heavy Industries, Government of India has funded project(s) for technology development, under the Scheme for Enhancement of Competitiveness in the Capital Goods Sector;

B. ABCD is an academic institution/research institution, engaged in conducting advanced research in various fields of technologies and is acting as the Project Implementing Organisation (PIO);

C. PQR is an industry engaged in the (details of business of the Industry partner)…………………..
and is acting as the Industry partner for the implementation of the project (Industry partner).

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and covenants that follow, the Parties identify and agree to the terms of this Agreement for the ownership and management of the IP generated during the execution of the project(s) sanctioned by MHI under its Scheme for Enhancement of Competitiveness in the Capital Goods Sector.

1. OBJECTIVE AND SCOPE OF AGREEMENT:

The technology developed and the Intellectual Property Rights granted in respect of the developed technologies under the projects funded by Ministry of Heavy Industries (MHI) under the MHI Scheme on Enhancement of Competitiveness in the Capital Goods Sector, shall be governed as per terms and conditions stipulated by the present agreement. Expectations from Project Participants (1) MHI and PQR shall jointly fund the project in the ratio 80:20. (2) ABCD shall allow use of its various facilities for research, providing expertise of its faculty members and background IPs (if any) for the development of the targeted technology (ies); (3) PQR shall contribute in funding, research team, and background IPs (if any).

2. OWNERSHIP OF INTELLECTUAL PROPERTY:

a. Background IP: The Parties recognize and acknowledge that the ownership of the background IP belonging to each Party prior to start of respective project shall exclusively belong to that respective Party.

b. Foreground IP: Any know-how, technology, discovery, results, or patentable invention generated under any project shall be a Joint Property of contributing Parties (MHI, PIO &Industry Partner). If such discovery is patentable, the patents will be filed in joint name. PIO will take the lead in filing the IP. The cost of filing IP in India will be borne by the PIO. All such IP shall be filed in joint name of MHI, PIO and Industry partner. Entire cost of foreign Filing, Prosecution and Maintenance will be borne by PIO.

c. PIO, MHI and Industry Partner shall normally retain perpetual, royalty free license of the IP during the duration of the IP. The PIO can use the IP for research and educational purposes and the Industry partner can use it for commercialization purposes for their own use only.

d. Lock in period: The IP/ technology developed shall not be transferred to any third party for a period of three years from the date of completion of technology development, as approved by the Apex Committee of the scheme or within six months of receiving approval from the PRMC constituted for the project. During this period of three years, the technology shall be exclusively used by the Industry partner for commercialization and further technological upgradation. The academic institution may use the technical know- how for research purposes, however, the academic institution shall not share the technical know- how, details and design of the technology so developed with any third party. After the expiry of the lock in period, the technology/ IP shall be open for transferring to any third party with the mutual agreement of the MHI, PIO. All costs pertaining to the transfer of rights/ ownership of the IPs may be borne exclusively by the PIO. All costs pertaining to the transfer of rights/ ownership of the IPs may be borne exclusively by PIO.

e. Licensing of the technology before the grant of IP- After the expiry of the lock in period and till the time, the patent is granted, the technology can be transferred to a third party by way of a transfer of technology agreement as per Annexure A. The transfer of technology shall take place with the mutual agreement of MHI, PIO.

f. Licensing of the IP: A non- exclusive license may be granted to any third party, after the expiry of the lock- in- period of three years. The licensing of IPRs shall be done with the mutual consent of MHI, PIO. However, after the expiry of 10 years of the grant of patent, all decisions pertaining to the licensing of the patent shall be taken by the PIO.

g. Sharing of royalty: The royalty earned in case of licensing of IPRs/ by way of technology transfer agreement shall be distributed in the ratio 80:20 between PIO and the service account. The royalty share in the service account shall be used for the promotion and upgradation of the technology developed. 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.

h. IP Management fund: PIO shall be responsible for the management of the IP. PIO shall utilize funds out of the earned revenues (80% share in royalty), for any activity relating to commercialization and maintenance of IPR or obtaining IPR in any other country, or for capacity building in the area of IP protection, annual maintenance etc.

i. Commercialization of the technology: Commercialization shall be sole responsibility of the Industry partner. PIO and MHI shall extend all possible support to Industry partner for commercialization purposes. In case the Industry partner fails to commercialize, the technology shall be assigned to National Research Development Corporation for arranging commercialization. NRDC shall help in bridging the gap between the level of technology developed and the actual industrial requirement. MHI shall be protected and indemnified from all liability arising from development and commercialization of the IPR.

3. OBLIGATION:

a. PIO agrees to identify potential licensees, customer and/or joint development partner; negotiate the best possible terms and coordinating to enable the parties to enter into a sale or license.

b. MHI agrees to provide best support to PIO for enhanced outreach through other government departments.

c. Industry Partner agrees to provide best support to PIO for development of the targeted technology and shall play a key role in commercialisation of the targeted technology.

4. TERM AND TERMINATION:

The Agreement shall commence from the Effective Date and shall continue until the validity of the last of the patents. Either Party may terminate this Agreement upon thirty (30) days advance written notice to the other Parties. However, in the event of such termination, the ownership rights and revenue sharing arrangements of all joint IPs shall remain unaffected. Moreover, each Party shall return all information that is proprietary to the other party.

5. INDEMNITY:

PIO shall indemnify MHI against infringement claims. Moreover, upon entering into of any agreement with a third party, the parties shall procure an indemnity from such third party for the use or license of the Technology.

6. LIABILITY:

Except as any liability agreed herein, in no event shall either Party be liable to the other, either for or under this contract, tort or any other legal theory, for any direct, indirect, incidental, special, consequential, reliance or cover damages, including, but not limited to, loss of profits, revenue, data or use, incurred by the other party under this Agreement even if advised of the possibility of the same and arising out of either the performance or non-performance of its obligations under this Agreement.

7. GOVERNING LAW & DISPUTE RESOLUTION:

This Agreement will be governed by and construed in accordance with the laws of India. Any disagreement/ difference of opinion/ dispute between the Parties regarding the interpretation of the provisions of this Agreement or otherwise arising from this Agreement and the activities undertaken under this Agreement shall be resolved by mutual consultation by the Parties. 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.

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives.

Ministry of Heavy Industry

Signature:

Name:

Title:

ABCD LTD.

Signature:

Name:

Title:

PQR Ltd.

Signature:

Name:

Title:

Witness

Signature:

Name:

Title:

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