N o F 2 2 ' I l 2 0 1 - T S4

Governmentof lndia

Deveiopment
Resource
Mirustryof F{uman
Education)
(Departruent
of Higher
ShastriBhavan.
Neq,Delhi,
the 6'l' September.?01 1

To

TheChairman(Acting).
All India Councilfor TechrLical
Education,
7thFioor.Chanderlok
Buildine
.lanpath.
Neu,Delhi-1I 000l

7_cT*/t

Qrrh'-T-'"io'-entationof the schenrefor seningup of ne\\'polvtechnicsunderPublic

PrivatePafinership(ppp) Vlode
v

sv.

rtrr}JJ.vtrl\,

Sir.
This is in continuation of our lerter of even number dated 8'n April . 2A,I a-nd

vour letter No F,l-29-AICTE/2010dated 7'hJull'. 2011 on the subjectmenrioned

abor,'eand to state that this Ministr,v.under its approvedschemeof Sub-\4issionon
Polvtechnicsunder CoordinatedAr:rion for Skill Developmenthas a componentfor
providing financial assistancefor ijettingup of new poll4echnicsunder PPP X{ode
Mocialitiesfor operationalisingthis componenthaveuow beenpreparedbased0n vour
inputsvide vour letter underreferenceand the discussions
held in the meetinslr'iih the
State Government repre-sentatives
industr,v
valious
associationssuch as CI].
and
FiCCI, PHD Chamberof Commerceconveredb;,-.
AICTE on 28'hApril. 2011 For
sefttn-e
up ne\4rpolytechnicsunder PPP mode. the follou'ing modaljtieshave 'been
approvedb1,the Government;
r i if \
x r

(i)

Implementation
of thescheme
by AICTE
andrnonitoring

I (ii)

Releaseof grantsto the StateGovernments

b,vN,flIRDbasedon lthe
recorrrmendations
of theAICTE

(iii)

Wide pubiicityof thr:schemeby' AICTE in nationaldailiesandihe

State GovernmentS
in regionalpapersfor invoiving industl' as a
private partner. In the absenceof sufficientnumberof industrl,
showinginterest.
props5als
fromprivateserviceeducation
providers
be
invited/considered
lateron

(i.')

AiCTE will also fix the numberof polrtechnicsto be established

rn a
particuiarStatein the begin-'itng

,l
J

bv AICTE in consuitationwith the

(")

Finalization of list in St
concernedStateGovernme

("i)

receivedis morethan 300.the

In case the number of pI posatrs
seiectioncriteria will be
lved by the AICTE with the concerned
StateGovernment

(vii)

andthe State
AllowingAICTEto signM U with StateGovernments
GovernmentssigrungN4OLI ith privatepartners.

(viii) Constifution
of theInstitute anagementUonuntfiee (itvfc),
(ix)

Land to be providedb,vthe ndustrywhrchlateron is to be trausferred

to the IMC, Altematively.tateGor,t.will providelandfor q P i T r r ' r o I I n
of new'polyechnics
! v ! ! { r r r

(x)

Rs.2.00 crore to be provided b,v the State Government to be

e r L

1
\x,'2t\jF,-

r
.lT

in casethe landis provided the StateGovernment

(xi)

cr e to be depositedby the privatepartners

A minimumof Rs,10,00
for constructionof building, uiptnent and running of the polr,lechnic
in the IMC account.

(rii)

bt IMC
Buildingto beconstructed

(xiii) Recun'ingexpendifure
is to be borne by the IMC throughfeesand
internalrevenuegenn:ration.
(xiv) Admissionto be madeby

e State Govt. based on the admrssion

procedure being followed in the State u'ith pler,ision for accessto the

weakeranddisadvantaeed trons,
(xv)

Feesto be decidedby theSt

with theIMC
Gord.in consuJtation

2.
You are reguestedto initiate the acti ities basedon the parameters/deiiverables
of the schemeas per modaiities indicateda

Yoursfzuthfully,

(Dr,A K Nassa)
(T)
Deputy'Educational
ACviser

SC EME OF PROTrIDIN,G:FINAHQIATAS$ISTANCE FOR SETTING UP

oF NEW POIITTECEI{ICSUHDER PPP MODE

Agencies involved

(v)

Ministry of HRD (Departmentof Higher Education)

(vi)

AICTE

(vii)

State Governments

(viii)

Industries/ prirzate service

educatton

provtders

iPrtva.'-e

Partners)

Role of MHRD
Ministry of HRD on the recommendations of AICTE wili reiease tlie
grant to state governments in instalments.

Role of AICTE

AICTE wiil publicize the sc,hemein leading news papers and will reque:i;t
State Governments to also pubiicize the scheme in regronalllocai ne\rs
papers

so

as

to

invite / involve

industries

in

the

respecti',':

States/ regions. AICTE will also fix the number of polytechnics io b:

established in a particular State in the beginnrng and rn'ill intimate th:
number to the State Gover,nments.

AICTE will invite prcxposalsfrom a single or a group of industrie,;

who meet the criteria listed in Annexure to join hands u'rth the Stat,:
and Union Governments to establish polytechnics in therr region. In rhr:
absence of sufficient number of indust.ries shou'rng interest, proposai:;
from private service educertion providers, i.e . Societies/Trusts/ Sectioil
25 companies as has been prescribed by the AICTtr in rts reguiatron:r

concerned will be considered. An expression of tnterest will be rnvited iir

the first instance to identi$'such partners in each State. A DPR shall :e
submitted by the industry/ies identified through expression of interes;t
to establish the polytechnic 1fI the region as given rn Appendrx.

After selection of the ilolytechnics/location of the polytechnics artC

receipt of proposals from the State Government along with Ii{OUs r,vt:h
private partners, AICTE wilil sent a consolidated proposals of the Stat,:s
to the Ministrv of Human FlesourceDevelopment for release of grant,

Role of the State Governgnent

State Governments urill give vide pu blicity of the scheme in tf ie

local/regional newspapersso as to involve industries for setting up ,-,f
polytechnics.

On receipt of the information about the maximum

polytechnics

to be set u,p in the state under

Government will send proposals to AICTE so that

this

nuntber t,f

scheme, State

AICTE ma)' suitabli'

select the polytechnics folbwtng the criteria for that state.

The State Government along with AICTE will finalize the [st c I
polytechnics

to be estabiished

and will

sign

MOU

wrth

the privat,:

partners and the AICTE as per the prescribed MOU.

Role of an Industr,v Partn,er

(i)

The Partner should ire a cornpany of repute wrth good governanc.

(ii)

The Partners should activeiy participate rn the Governance of th':

institute within

the overall framework. F or membershrp in thr':

Board of Governors tihey should propose the nomination of senror'

n,l
t-

officials to the Nominations Committee so that there is active

participation.
(iii)

The

partner

be willing

should

to

do

joint

projects with

polytechnics either through funding coilaboration or in anv other

manner.

(iu) The partner should be wiiling to depute very accomplished

individuals

faculty or otherwise

as adjunct

participate in the

teaching activities of the polytechnics'

(v)

The partner should be willing to allow students to do project

works as a part of therr course, within their enterprise. The)' must
also provide mentors for developing the students in such proJects,

(vi)

The partner should be willing to allow training to the facuit-v ol'

the polytechnics so thiat there is greater interaction.

(vii)

The partner should have the willingness and ability to co-create

programmes with the poiytechnics'

(viii) The

partner

should

allow internship

for

students

from the

polytechnics.
(x)

The partners should {acilitate for placernent of the students from

the polytechnics.

(x)

The partner should he wiliing to join and help fund the startup ol
the institution makinLg a contribution of a mrnimum of Rs. lC
crore or as decided by the State and Union (iovernrnent.

(xi)

The partner

shouid be eligible for a fuil

deduction of therr

contributron agatnst their income under the income Tax Act as is

currently

allowed for any grants made to Universities in india

under S i 0 (22) of the Income Tax Act 196 1 , A notification of an

amendment is essential in the law for this purpose.

2
.J

Deliverables

Constitution

iYlanaeFeat Committee

of Institute

(IIHCI

will consist of;The Institute ManagementC)ommittee

1. The Chairperson to be:nominated by the Industry'
2, Two persons to be nominated by the Government of the State ri-r
which the Institute is situated'
3. Four persons having ;specialknowledge or practical experiencei:r
respect of education, engineering or science including the i'1'
Industry,

ro

by

nominated

be

the

participatrn5l

industrY/ industries.
4. One Head of section on rotation of the polytechnics to bt:
nominated bY the IMC
5. One nominee of the Ministry in the Central Government dealin;i
with TechnicalEducation/ AICTE'
6. One Person to be nonrinated by the CII'
7. One eminent person having knowledge and experience from cil'ii
society to be nominated by the IMC (Panchayat/Coliector),
8. The Director/Principal - ex-officio Member- secretary.

Land
The

Industry

may

provide land

in

the

industry's

campuri

separately for setting up of the institute as per the requirement of tht:

The land deeris a.re to be transferred to the Institutt:
AICTE.
Management Committee.

Alternatively, the State will provide iand fo-

setting up of new polfechrric.

F\rnds
Rs.3.00 crore will be provided by Ministry of Human Resource
Development

to

the

State

Governments

recommendations of the AiCTE.

in

instalments

on

tf re

Rs,2,00 crore will be provided b1' the

State Govt, and in case land is provided by the State Govt., tlre
c o n d i t i o n o f R s . 2 . 0 0 c r o r e c a n b e w a i v e d o f . A m i n i m u m o f R s .1 0 . 0 0 w r i l
be deposited

by the prir,'ate partner

for

construction

of buildin;1,

equipment and running of the poiytechnic in IMC account.

Building & Equipment

The building is to be constructedby the IMC and will meet all th,:
expenditure on purchase of equipment, development of land etr:.
through the funds depositedin the IMC account.

Recurring expenditure is to be borne by the IMC through fees,,

internai revenue generation, etc.

Private partners will meet additionai

requlrement of capital and recurring expenditure, if required.

Adm'issions
Admissions will be made by the State Governments based on tht,:
admission procedure being followed in the State. However, it wiil havr':
to b ensured through the MOU that the access to the weaker ancl
disadvantaged

sections

is; facilitated

through

scholarship and other such affirmative actions.

6'

conce ssional feesr

un4er PPP mode will b decided t,y

the representative of iMC.

the polytechnics will be decided ty

rstry which is partnering under th.,s
tner is not industry then the State
.he region

and

accordrngly deciie

[ation with the iMC.

d for teachrng faculty of a diplom a

cuity from the industry

nay be affiiiated

concerne,f

to the respectiv,:

'f the state as in case of otherr;

ytechnics (only in case of Industnr
)mous status

(Acadernic Autonomri

>nsultation with AiCTE or as per thr:

)se by AICTE so as to bring thesesr
chnics'

Aturemlr'

CRITERIA FOR SELECTtrIIIGINDUSTRY PARTNERS FOR SETTI}TG'

UP POLYTECHNICSIDTPPPMODE
CRITERTAFOR INDUSTRYF'ARTNERSSELECTION
thi,i;
1. There shouid be single or multiple industry partners under
scheme to join togetherwith Government to set up polytechntcs'
Multiple partners are preferred so that collaboration in different
areas is possible.
2 . The industrY Partners can be both core companles or companler:i
doing IT business.

3 . pubiic sector industries could be actively encouraged to becomt,:

partners.
A

The industry partners must be members of industry Associatior

S U C hA S N A S S C O M , I I I C C I , A S S O C H A M , C I I C t C S O t h A t A d C q U A t t "
information is available in the public dornain.

5 . The partner industry should normally have been in operations for

at least 5 years.
6 . The partner industrie,s shouid preferably as listed compantes rvitl,
a good governance and well regarded in the business communliv
Being listed implies that they are sub;ect to regulatory contro i
and information

aberut them would be available in the public:

domain.

7 . For those industries whrch are not

listed

they rnust have

demonstrated track record, and good governance.

8 . MNCs working in Indta u'ith specialtzed knou'ledge and interest

should also be encouraged to be partners'

11

9 . The minimum contribution from an industry Partner should tre

Rs. 10 crore. Each partner mav contribute different amounts ro
make up the requireclshare

1 0 . The same company may

nd different polytechnics based c,n

their need. There should e no exclusive arrangements of ?r;V

nature and the polyt'echntc shouid be free to work with multip:e
partners.
i1.

The industry Partners a

eligible to seats on the Board ,rf

Governors(BOG)upto 600, of the total seats subject to therr

Nominees being eligible for appointment
down.

as per the cnteria lajd

APPEND]:X
Detailed Project Report (DPR)to be submitted by the selectedindustle,s
to the AICTE for the estabiishmentof polytechnicsin therr region.
1.

The need for a polyllechnic

in the region.

a) Piease describe rvhether the proposed polytechnic is beirrg

suggested to meet the current and future demands of tl re
technician education in the region. Provide some back Rrour'd

data on existing irrdustriesin the region.

2.

The Setting
a) Pleasedescnbeter:hnicaieducationscenarioin the state.
b) Pleaseprovide information on number of students aspiringfor
education.

c) Describe quaiity of education as o btarned now (pol1r1s.hn

c
e d u c a t i o ni n t h e s t a t e ) ,
d) Provide information on curriculum and course developmenls
in existing institution, how often they get updated.
e) Describe Academiie.-lndustry
interaction as present now..
f) Describe existing innovation ecosystem in the poir,techn;c
education in the state incubator programmes, start u D

support.
g) Describe the ongoing continuing education programmes rn th,:
academic institutions of the state.

3.

The Justification
a) List reasons for proposing polytechnics for strengthenin ii
technician education system
b) The strategies to rnake the institute seif sustarning within fir,,,:
years.
c ) Describe how thersepolytechnics will positivelv impaci otherinstitutions in the state,

4.

Location
a) G i v e d e t a i l s o n i L o c a t i o n ( L a n d a v a i l a b i l i t y , c l i m a t e , \ , a t e .
availability in the campus, terrain, iand cover etc.)
b) What facilities are available within 1O and. 20 kilometers frorr
the location (schools, coileges, hospitals, shopping centres
,
hotels / restaurants;,
recreational
facilities,
p.,Uii"
libraries,

religious places),

,1

c) Is the land ou'ned and in possession of the rndus.-n,

Government?
d) How close is the iocation to an industrial cluster? How mat-Iy
industries are the:rein that ciuster.
e) Accessibility : neilrest airport, railway station, bus stand
r5e
classification of the road leading to the location from these
points (NH, SH, rural, arterial, major etc.) public transpgrt
availability (cit_ybus service, train services etc)
5.

Partners

in the Con,sortium

a) Give details on the partners (names - public private, nature rlf

/
business, listed/unlisted, turnover, evidence of interest in
educationai activities, around willing to contribute to corpi-.s
e t c .)
b) Apart from contributing to the corpus, do they pian to rnterar:t
with the institutton ln more ways (recrurtment,
;oint researc.rr,
scholarships,
arvards, sponsored
research,
incubatio:-i,
internship etc.)
c) Would they want a say in the institute's
financral an,l
academic governance?if yes, how.
6,

Role of State Govemr.m.ent

a) Describe how the state government would contrnue
its
association with the institute.
b) Apart from contriLruting to the corpus and providing
land, doer;
the state governfftent plan to interact with the
in"stitution 1.r
more ways (recruritment, joint research, scholarship,
awardsr.
sponsored research, incubatron, internship etc,)
c) would the govern.mentwant a say in the instrtute,s
financral
and academic governance?If yes, how.

7,

Academic

prograrn$tes

a) Please describe the academic programmes

being planned fo;
the first five years.

b) How will the students for each programme will

be selected,,
(entrancetests policiesregardingreservations,
sons of the

etc)
c) F aculty recruitmenrt policies

d) Fee structure and the basis for fee fixation and

fee re'ision
e) Scholarships,sources,methods of awarding.

lo

sor

8.

Ed.ucational

Outrear:h programmes

a) Will there be prc,grammes for working professionals? If 1'3s

when will they be introduced? Nature of programm,3s
(certificate, diplonra etc), how will the students be seiectedarrd
intake numbers.
b) will there be short term skiil developmenr prograrnme i:r
currently unemployed youth? if yes, details thereof.
c) Do you plan to off'er programmes in distance education modt:?
If yes, details.

9.

Industry

collab orati on

a) Your plans for industry collaboration

1().

Governance

Stmctrrre

a) Legal form of the organtzation(regrsteredsociety, registered

charitable trust, sec 25 company, any other)
advintages
"nd
of the chosen form.
b) Who will the mernbers of the general body in case of registereC
society,initial trusiteesin case of trust or share holders ln case
of sec 25 company,
c) Governingboard constitutionand duration of the membershir,
d) Reconstitution of g;overningboard and its bodies.

e) Powers of the gove:rning board.

fl

Principal: method of selection, duration of appointment

&nr1
powers.
g) Academic bodies (Senate board of studies and
otheicommittees) how will they be constituted and powers
ancI
responsibility
h) Applicability of RTj act.
1 1.

Financial

Model

a) Capitai expenditure (buildings includrng hosteis,

estatt:
development, labo.ratory equipment and oih.. rnfrastructure :
power, water and communication) year by year for
next ten
years.
b) Operating expenditure (faculty/staff salaries, perks, acaciemrc
expenses
(library,
lab material,
etc. )
power, $rater,
infrastructure mailrtenance) year wise for next ten years.
c) Sources and amourit of income year wise for ten years
(i)
Student fees
(ii)
Income from facilities (hosteis, auditorium etcr
(iii)
Net income from outreach

(iv)
(v)

(vi)

Income from spon rred research, consuitancv

Income from lnnov tion and enterprises

Other incornes

d) Break even analys;is

e) Cash flow for ten vears, ar by year
f) Will the institution borr w money, if
so when, how much and

how will it repay.

g) Corpus building: target orpus at the end
of first, third, fifih
and tenth year sources for corpus and how
corpus will trc
rnvested/used.
t2.

SWOT aa.alysis
a) Please provide yclur pe ceptipn of your
{state's) strengths,
weaknesses, and the pportunities. please
threats/risks

classify yo..

in to des

ctive (if it happens the instituto

will
collapse),disabling (some
setbaQk,
but
institute
can
stiit
l^:or
run)

and discomforting.
destructive risks.

scribe

your

preparedness

to face

b) Describe your vision fo

the institute and how wi]l your

strengths will achievethi vision.
c) Describe a post ten year
nafio
13.

How will the institrwte C{III

tp to India's derelopeerrt
a) Envision institute,s lmpa t on the technician
education anci
the economic growth o f t h countrv.

L4,

Any other information you

proposal.

l r

l L -

t to provide in support of youj