Content

3.1. MoU Execution

Overview

Item	Description
Purpose	To lay down MoU execution process and related timelines
Reference to Guidelines	Step 6 & 7, table 4, Para 4.1, pages 36 and 45
Prerequisite/s	Uploading of approved empowered committee (EC) minutes and sanction order
Time for completion	20 working days from uploading of sanction order on the nominated website (Sanction order uploading day is referred as ‘I₂’)
Resource/s	As per SF 3.1A: Prospective project work schedule, SF 3.1B: Standard terms & condition, SF 3.1.C: Special terms & conditions and SF 3.1.D: Power of Attorney (PoA)
Process owner	For APS: SRLM For YPS: CTSA

3.1.1 Preparatory work for execution of MoU

Overview

Item	Description
Purpose	To delineate the preparatory work for MoU execution and related timelines
Prerequisite/s	Uploading of EC minutes on the nominated website
Time for completion	15 days of time gap between I₁andI₂ and 2 days after I₂(I₁: Uploading of approved EC minutes and I₂: Uploading of Sanction order)
Resource/s	As per SF 3.1A: Prospective project work schedule, SF 3.1B: Standard terms & condition, SF 3.1.C: Special terms & conditions and SF 3.1.D: Power of Attorney (PoA)
Process owner	For APS: SRLM For YPS: CTSA

Activities

Sl.	Action	Actor	Time for completion	Relevant documents
For YPS
1	Filling up “Prospective project work schedule”	PIA	I₁ + 10days	SF 3.1A: Prospective project work schedule
2	Review of “Prospective project work schedule”[1]	SRLM	I₁ + 15 days	Review and validate SF 3.1Aas per 3.1.1.1 of SOP
3	Validation of “Prospective project work schedule”	CTSA	I₁+ 17days	validate and freeze SF 3.1A as per 3.1.1.1 of SOP
4	Preparation of MoU annexures	PIA	I₁+3 days	SF 3.1B: Standard terms & condition, SF 3.1.C: Special terms & conditions and SF 3.1.D: Power of Attorney (PoA)
5	Filling up MoU signatory by name & designation	PIA, SRLM &CTSA	I₁ +3 days	On the designated website
6	Review fund position and advise MoRD and/or SRLM if funds are likely to fall short with a copy to PIA	CTSA	I₁ +3 days	As per data given in ERP system.
For APS
1	Filling up “Prospective project work schedule”	PIA	I₁ +10 days	SF 3.1A
2	Validation of “Prospective project work schedule”	SRLM	I₁ +17 days	validate and freeze SF 3.1A as per 3.1.1.1 of SOP below
3	Preparation of MoU annexures	PIA	I₁ +3 days	SF 3.1B, 3.1.1C and 3.1.1D
4	Filling of MoU signatory by name & designation	PIA and SRLM	I₁ +3 days	On the designated website
5	Review fund position and advise MoRD or take internal action if funds are likely to fall short with a copy to PIA.	SRLM	I₁ +3 days	As per data given in ERP system.

3.1.1.1 Prospective work schedule for the project: Contents and relevance

The prospective work schedule for the project should give a comprehensive picture of PIA’s plan of action for implementing the project. The details are to be filled in a web form as per SF 3.1A and would include the following:

a. Monthly training commencement schedule for the complete project duration.

b. Monthly training completion schedule for the complete project duration.

c. Training of candidates should commence within 90 days of project commencement date.

Figure 3.1‑1 Preparatory steps in execution of MoU for YPS

d. Minimum trainings to be initiated in a year as per the project duration is given below:

In case the project duration is 2 years or less but more than 1 year, at least 35% of training of the total project target should commence within 12 months of the effective date of commencement of the project.
In case the project duration is 3 years or less but more than 2 years, at least 30% of training should commence within 12 months, at least 65% training should commence within 24 months, of the effective date of commencement of the project.
In case the project duration is 4 years or less but more than 3 years, at least 20% of training should commence within 12 months, at least 40% training should commence within 24 months, at least 75% training should commence within 36 months of the effective date of commencement of the project.
In case the project duration is 5 years or less but more than 4 years, at least 15% of training should commence within 12 months, at least 40% training should commence within 24 months, at least 60% training should commence within 36 months, at least 85% training should commence within 48 months of the effective date of commencement of the project.

e. Within the minimum targets prescribed above the PIA has flexibility to vary the training quantum across different months of the year, across different geographical locations, across different trades and training centres.

f. Within the minimum yearly targets prescribed above the PIAs has flexibility to revise the PPWS as per the conditions prescribed below:

A PIA may revise the PPWS once in the project duration subject to the condition that the annual targets approved in the original PPWS shall not be modified and the PIA has to achieve the annual target for that year by rescheduling its batches.
The revised PWS shall come into effect with the approval of respective SRLMs (in Action Plan States) or CTSAs (in Year Programme States)
Where a PIA has been served with an Yellow alert, by SRLMs (in Action Plan States) or CTSAs (in Year Programme States) and thereafter the revised PWS has been duly approved for a PIA, the Yellow alert issued prior to the revision shall be deemed closed.
In case where a revised PPWS has been duly approved for a PIA, all previous alerts or non- performance of PIA with reference to the original PPWS, shall be deemed to be cancelled/ closed.
Under no circumstances revision in PPWS shall be allowed as a ground for extension in project duration.

3.1.1.2 Monitoring of the prospective work schedule

PIA should report the number of candidates in a batch after a batch is frozen. This will be treated as number of candidates for whom training is initiated.
Similarly the PIA should report the number of candidates who complete the training on a continual basis.
The number of candidates for whom the training is initiated should be at least the number indicated in the corresponding month of prospective work schedule.
Similarly the number of candidates trained should be at least the number indicated in the prospective work schedule.
Cumulative training achievement will be reviewed by SRLM/CTSA as follows:
- Shortfall in the cumulative total should not be more than 10% of the cumulative target in first 6 months of commencement of project execution
- Shortfall in the cumulative total should not be more than 5% of the cumulative target from 7^th month to till 6 months before completion of the project.
- There should not be any shortfall in the cumulative target for the last 6 months of the project duration

Any deviation from PPWS will lead to:

- default as discussed in Chapter.
- 10: Procedures for handling defaults.

3.1.2 Signing of MoU

Overview

Item	Description
Purpose	To delineate the steps/actions to be taken in signing MoU
Prerequisite/s	Uploading of sanction order on the nominated website
Time for completion	20 working days from uploading of sanction order (start from I₂day)
Resource/s	MoU
Process owner	For APS: SRLM For YPS: CTSA

Activities

Sl.	Action	Actor	Time for completion	Relevant Documents
For YPS
1	Review highlighted text of system generated MoU	PIA & SRLM	I₂+2 days	MoU
2	Vetting and freezing of MoU and annexures thereof	CTSA	I₂+4 days	MoU
3	Printing and signing of MoU and annexures, and ensure that it reaches SRLM	PIA	I₂+7 days	From the above source
4	Signing of MoU and ensuring that it reaches CTSA	SRLM	I₂+14 days	MoU
5	Signing of MoU and ensuring that copies reach SRLM and PIA Uploading of MoU and annexures on the web-link	CTSA	I₂+20 days	MoU and uploading on the designated website
For APS
1	Review highlighted text of system generated MoU	PIA	I₂+2 days	MoU
2	Vetting and freezing of MoU and annexures thereof	SRLM	I₂+4 days	MoU
3	Printing and signing of MoU and annexures, which should reach at SRLM	PIA	I₂+7 days	From the above source
4	Signing of MoU sending a copy to PIA and informing CTSA about the event completion Uploading MoU and annexures on the web-link	SRLM	I₂+14 days	Project MoU and uploading on the designated website

Figure 3.1‑2 Execution of MoU for YPS

3.2. Release of 1st instalment

Overview

Item	Description
Purpose	To lay down the fund release process for 1^st instalment and issue of Project commencement order to PIA
Reference to Guidelines	Row 1, Instalment 1, table 6, para 5.9, page 56
Prerequisite/s	Uploading of executed MoU
Time for completion	10 working days after signing the MoU (MoU execution day is coded as I₃)
Resource/s	As per SF 3.2A: Project account registration form on PFMS and SF 3.2B: Project commencement order and SI 8.3D1: Applicability and settlement of TDS
Process owner:	For APS: SRLM For YPS: CTSA

Activities

Actor	Action	Time for completion	Relevant Documents
PIA	Opening dedicated bank account[1] for the project and linking it to Public Finance Monitoring System (PFMS) Filling up the bank account details if PFMS is not operational.	To be completed at least 5 days before signing of MoU (I₃-5 days)	SF 3.2A: Project account registration form on PFMS
SRLM (For APS)/ CTSA (For YPS)	Release the first instalment amount of central & State shares after deduction of TDS and updating the status on designated web-link (It is mandatory central and state shares are released together This should be followed meticulously by fund releasing agencies)	latest by I₃+10 days	SI 8.3D1: Applicability and settlement of TDS
SRLM (For APS)/ CTSA (For YPS)	Issue of Project commencement order	latest byI₃+10 days	SF 3.2B: Project commencement order
Note: The project commencement date of the project will be from 30 days from the date release of central and state share from CTSA for YPS/ SRLM for APS

CTSA must release funds to the PIAs only after it receives both the central and state shares. In some cases the central share was released before the SOP was issued with the instructions that PIA should not spend any money till SOP is released. Now it is reiterated that PIA should not spend any money till state share is released.

[1] If consortium partners are going to implement any activities and any outsourcing partner is engaged in training and placement towards the project, they have to open a dedicated bank account. All the project bank account needs to be mapped into PFMS, whenever the system becomes functional.

3.3.Project Execution Readiness Assessment

Overview

Item	Description
Purpose	To ensure availability of basic core team for implementing the project and sensitize them in implementation procedures
Reference to Guidelines	NA
Prerequisite/s	Uploading of sanction order on the designated website
Time for completion	Any time after issue of sanction order but not later than 30 days from release of 1^st Instalment (not later than I₄ +30) and continuous process for revision
Resource/s	SF 3.3A: Project execution readiness assessment at Project Headquarter and SF 3.3A1: Project execution readiness assessment at PIA Headquarter
Process owner	PIA for all states

Activities

Actor	Action	Time for completion	Relevant Documents
PIA	Filling up all the details Update planned change Update unplanned change	Not later than I₄ + 15 days 15 days before change Within 48 hours of change	SF 3.3A: Project execution readiness assessment at Project Headquarter and SF 3.3A1: Project execution readiness assessment at PIA Headquarter
SRLM (for APS)/CTSA (for YPS)	Validation of data and visit of project Headquarter	First visit: Complete by I₄ + 30 days Other visits: Not specified but will be decided based on the quality of project implementation.	SF 3.3A: Project execution readiness assessment at Project headquarter
SRLM (for APS)/CTSA (for YPS)	Validation of data and visit of PIA Headquarter*.	To be done along with first month audit visit by Finance team. Other visits: Not specified but will be decided based on the quality of project implementation subject to minimum of one visit in a year either by CTSA or SRLM visit. Others can decide based on the visit report.	SF 3.3A: Project execution readiness assessment at Project Headquarter
Note: As a PIA may have projects spread out in many states the teams can plan the visits in consultation PIA and other states. If a SRLM/CTSA team visit is less than 6 months old, then PIA headquarter visit is optional. SRLM/CTSA can take a call depending on the situation.

3.4. Release of 2nd instalment

Overview

Item	Description
Purpose	To specify activities for release of 2^nd instalment of funds to PIA
Reference to Guidelines	Row 2, instalment 2, table 6, para 5.9, page 56
Prerequisite/s	System generated notification for fulfilment of condition as per above reference to guidelines
Time for completion	60 working days for YPS (40 working days for APS) from eligibility day (notification date of eligibility for 2^nd instalment is coded as E₂) provided all conditions are fulfilled by the PIA.
Resource/s	SF 3.4A: Checklist for release of 2^nd instalment updated through the system and SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment.
Process owner	for APS: SRLM for YPS 1) CTSA till dispatch of recommendation to MoRD and also for release of funds after MoRD issues release order 2) MoRD after receipt of recommendation and till issue of release order

Activities

Actor	Action	Time for completion	Relevant Documents
PIA	Submission of checklist and annexures for release of 2^nd instalment to SRLM for APS/CTSA for YPS	E₂+3 days	SF 3.4A: Checklist for release of 2nd instalment updated through the system and SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment
SRLM for APS/CTSA for YPS	Ensure all advisories are complied with CTSA to SRLM for APS and vice-versa for YPS. Validate the checklist, annexures and upload on designated web-link.[1]	E₂+10 days	Inspection reports of PIA Q team, SRLM/CTSA and SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment
For APS
SRLM (APS)	Issue of release order & upload on the designated web-link Release 2^nd instalment amount of Central and State share to PIA’s designated bank account for the project after deducting TDS. Update fund release status on the designated web-link	Before E₂+40 days	SI 8.3D1: Applicability and settlement of TDS
For YPS
CTSA	Recommendation for release of 2^nd instalment to MoRD	E_{2 +}12 days	SF 3.4A: Checklist for release of 2nd instalment updated through the system
MoRD	Issue of release order and upload on the designated web-link	E₂+ 52 days	Nil
CTSA	Release of 2^nd instalment to PIA after deducting TDS and upload the status on the designated web-link	E₂+60 days	SI 8.3D1: Applicability and settlement of TDS

[1]If a PIA fails to comply with the conditions for release of instalment then the request for release will be sent to the bottom of queue.

3.5. Release of 3rd instalment

Overview

Item	Description
Purpose	To delineate steps in release of 3^rd instalment to PIA
Reference to Guidelines	Row 3, instalment 3, table 6, para 5.9, page 56
Prerequisite/s	System generated notification for fulfilment of condition as per above reference to guidelines
Time for completion	60 working days for YPS (40 working days for APS) from eligibility day (notification date of eligibility for 3^nd instalment is referred as ‘E₄’ day) provided all conditions are fulfilled by the PIA.
Resource/s	SF 3.5A: Checklist for release of 3^rd instalment and SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment
Process owner	for APS: SRLM for YPS 1) CTSA till dispatch of recommendation to MoRD and also for release of funds after MoRD issues release order. 2) MoRD after receipt of recommendation and till issue of release order

Activities

Actor	Action	Time for completion	Relevant Documents
PIA	Submission of checklist and annexures for release of 3^rdinstalment to SRLM for APS/CTSA for YPS	E₄+3 days	SF 3.5A: Checklist for release of 3rd instalment and SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment
SRLM for APS/CTSA for YPS	Ensure all advisories are compiled by CTSA to SRLM for APS and vice-versa for YPS. Validate the checklist, annexures and upload on designated web-link.[1]	E₄+10 days	Inspection report of SRLM/CTSA
For APS
SRLM (APS)	Issue of release order & upload on the designated web-link Release 3^rdinstalment amount of Central and State share to PIA’s designated bank account for the project after deducting TDS Update fund release status on the designated web-link	E₄+40 days	SI 8.3D1: Applicability and settlement of TDS
For YPS
CTSA	Recommendation for release of 3^rdinstalment to MoRD	E₄+12 days	SF 3.5A: Checklist for release of 3rd instalment
MoRD	Issue of release order and upload on the designated web-link	E₄+52 days	Nil
CTSA	Release of 3^rdinstalment to PIA after deducting TDS and upload the status on the designated web-link	E₄+60 days	SI 8.3D1: Applicability and settlement of TDS

[1]If it is found that, the PIA has fail to comply the Guidelines condition then the proposal for release will be sent back to the queue and the process will start afresh from the beginning

3.6. Completion of project training and placement - Issue project completion report

Overview

Item	Description
Purpose	To verify and close the training and placement component of the project
Reference to Guidelines	NA
Prerequisite/s	Completion of project training and placement activities
Time for completion	Complete within 70 days after the PIA completes the project training and placement process. (Date of completion of placement for the project is referred as ‘E₇’ day).
Resource/s	SF 3.7B Project completion report
Process owner	For APS: SRLM/For YPS: CTSA

Activities

Actor	Action	Time for completion	Relevant Documents
PIA op team	1. Complete last batch of training and place minimum 75% of candidates thereof. System will freeze the training and placement data on the designated website 2. Provide the checklist as per standard format	E₆for training and E₇ for placement completion	Nil
PIA Q team	Complete the verification of training and placement	E₇+ 20 days	Nil
SRLM (For APS)/ CTSA (For YPS )	Complete the verification of training and placement	E₇+ 20 days	Nil
SRLM (For APS)/ CTSA (For YPS)	Validate the training and placement data on the designated website	E₇+ 35day	Nil
SRLM/CTSA	Ensure all advisories are complied with – advisories from CTSA to SRLM for APS and vice-versa for YPS.	E₇+ 40 days	Inspection report of Q teams of SRLM/ CTSA
For APS
SRLM	Verify the check list and finalise the total training and placement	E₇+ 45 days	SF 3.7B Project completion report
SRLM	Issue Project completion report	E₇+ 70 days	Nil
For YPS
CTSA	Verify the check list and finalise the total training and placement	E₇+45 days	SF 3.7B Project completion report
CTSA	Advise MoRD about the project closure of training and placement	E₇+50 days	Nil
MoRD	Issue project completion report	E₇+70 days	Nil

3.7. Release of 4th instalment and closure of project

Overview

Item	Description
Purpose	To lay down the fund release process of 4^th instalment to PIA & closure of the project
Reference to Guidelines	Row 4, instalment 4, table 6, para 5.9, page 56
Prerequisite/s	Fulfilment of condition as per reference to guidelines and notification for data freezing on the web-link
Time for completion	14 months from ‘E₇’ day[1]
Resource/s	SF 3.7A: Checklist for release of 4^th instalment and SF 3.7B Project completion report and SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment
Process owner	SRLM for APS/CTSA for YPS

Activities

Actor	Action	Time for completion	Relevant Documents
PIA op team	Submission of project closure report and checklist and annexures for release of 4^th instalment to SRLM and CTSA	E₇+10 months	SF 3.7A: Checklist for release of 4th instalment, SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment and SF 3.7B Project completion report
SRLM for APS/CTSA for YPS	Completing the retention verification process	E₇+10 months 9 days	Inspection report of SRLM/CTSA
SRLM for APS/CTSA for YPS	Verification and comments on Project closure report. Validate the checklist, annexures and upload on designated web-link.	E₇+10 months 14 days	SF 3.7A: Checklist for release of 4^th instalment, SF 3.4B: Decision rules for release of 2nd, 3rd, 4th and final instalment and SF 3.7B Project completion report
PIA	Changes as per the comments of SRLM/CTSA (if any)	E₇+10 months 24 days	3.7B Project completion report
SRLM for APS/CTSA for YPS	Freezing and uploading of Project closure report on the designated web-link	E₇+ 11 months 8 days	3.7B Project completion report
For APS
SRLM	Issue of release order & upload on the designated web-link Release 4^thinstalment amount of Central and State share to PIA’s designated bank account for the project after adjusting/deducting TDS Update fund release status on the designated web-link Issue of final closure report	E₇+12 months E₇+12 months 7 days E₇+12 months 15 days E₇+13 months	SI 8.3D1: Applicability and settlement of TDS
For YPS
CTSA	Recommendation for release of 4^th instalment to MoRD	E₇+11 months 20 days	SF 3.7A Checklist for release of 4th instalment
MoRD	Issue of release order and upload on the designated web-link	E₇+13 months	Nil
CTSA	Release of 4th instalment to PIA after adjusting/deducting TDS and upload the status on the designated web-link	E₇+13 months 15 days	SI 8.3D1: Applicability and settlement of TDS
MoRD	Issue of final closure report	E₇+14 months

[1] References to months and days in this process are to calendar months and days.

3.8. Consortium arrangements & outsourcing of activities

The basic conditions to be fulfilled for participation of a consortium in DDU-GKY and/or franchising/outsourcing of some activities to other agencies will be as per conditions specified in the guidelines (refer section v and vi, para 4.7 pages 49, 50 and 47 respectively). These conditions will be enforced at the application stage. Following arrangements enable implementation of these conditions:

Consortium

- Both the partners are jointly and severally responsible for the project, if consortium member default and are unable to fulfil the obligations as defined in the application form, the lead partner should inform SRLM for APS and CTSA for YPS within 10 days of the default. The Lead partner should also undertake the task assigned to defaulting. These arrangements should also be informed to SRLM and CTSA.
- Failure to comply with this condition will lead to termination of the project. The condition for termination will be assessed as per the project status by the SRLM for APS and MoRD for YPS.

2. Outsourcing / Franchisee arrangement

- Outsourcing of training and placement activities should be undertaken in consonance with information provided in the application form. If there is failure in the outsourcing arrangement, the PIA should undertake the activity directly. In no case is change of outsourcing partner permitted for training and placement.
- For outsourcing of other activities, PIA should provide information of the outsourcing partner along with the financial and legal terms of arrangement. The information should be conveyed at least 10 days before commencement of the activity to SRLMs for APS and CTSA for YPS.
- Once the outsourcing partner is chosen for an activity, a PIA will not be permitted to change the partner under any circumstances. The PIA should take up the activity directly if the arrangement fails.

The financial transactions will be transparent and done through PFMS. Till such time PFMS is in place all transactions between various agencies in the project should be done through the banking system only.

If these conditions are not met, a PIA is deemed to have defaulted and action can be initiated as per the rules.

3.9. Orderly closure of a project

A project can be closed/terminated under the following conditions:

Under conditions of default: The project will be terminated as per conditions of default.
When PIA requests for project closure:
- When it is unable to execute the project: In this condition the PIA should give written request for closure of the project. In such a case an audit will be completed and as per the audit conditions the project will be closed.
- When it is unable to abide by modifications incorporated in guidelines and SOP: This will be closed after mutual consultation. If the project has to be closed an audit will be conducted to close the project.
Under any other condition not envisaged above: This will be dealt case by case and no general guidelines can be issued in this case.

3.10. Project manpower plan: Ring fencing Q team from operations

Project manpower is broadly divided into the following three categories:

The management (including Q team head)
Operations team and
Q team

A PIA will have absolute discretion for recruitment of the project management team (other than Q team head) and operations team. However, each month he should inform the total number of people working in each category on a project. CTSA/SRLM will have the discretion to verify these details as per situational exigencies. These will be as per SF 3.10A: Details of centre in-charge and trainers.

Q team head and its composition should be as per agreed plan and the PIA should update the details on the web-link. Similarly changes in the composition of the team should be informed without fail. These should be reported as per SF 3.10B: Details of Q team members.

The Q team should be ring fenced from the PIA operational team and managerial team. Mechanism for ring fencing a PIA Q team is given as SF 3.10C: Ring fencing of Q team from operations – Compliances report from the management. PIA should comply with this procedure before the project is initiated..

3.11. Recovery of dues from a PIA

If a PIA defaults in implementing a project, recovering government money paid to PIA after adjusting for expenses incurred as per guidelines and SOP is a critical activity. If the PIA fails to repay the amount it is necessary to invoke the revenue recovery act 1890 or other applicable Revenue Recovery or Public Demands Recovery Act of the state/UT.

The procedure to recover the Government dues is as follows:

All SRLMs, i.e. both APS and YPS, should issue procedural orders on how the recovery would be made as per the relevant act in the state.
All efforts will be made to recover the money from the PIA by SRLMs in case of APS and by MoRD through the CTSA for YPS.
If all efforts to recover the dues fail the procedural order for recovery of dues will be invoked by:
- SRLM in case of APS with information to MoRD
- SRLM on the recommendation of MoRD in case of YPS
MoRD will maintain a list of such PIAs and also circulate the same to all SRLMs and CTSAs. This would also be updated on the designated website.