Terms of Reference (Tor) s4

Terms of Reference (ToR)

I.  Background

Government of India, Ministry of Textiles, Office of the Development Commissioner for Handlooms propose to take up Bhagalpur & its adjoining areas as Mega Handloom Cluster in Bihar under Comprehensive Handloom Cluster Development Scheme (CHCDS). The Cluster will be developed with an upper Government of India’s share of Rs.40 crore in a time frame of 5 years. The guidelines of the Scheme are available on the website: www.handlooms.nic.in

2. The guiding principle underlying the design of clusters would be to create modern infrastructure and to integrate the production chain in a manner that caters requirement of the handloom weavers in the Clusters. In brief, the main objective of setting up this cluster is to assist the stakeholders in availing the facilities set up with modern infrastructure, latest technology, and adequate training and Human Resource Development (HRD) inputs along with appropriate market linkages.

3. The Scheme is to be implemented through project specific Special Purpose Vehicle (SPV).

4. In order to ensure targeted, speedy and efficient implementation of the projects/scheme, the services of competent professional agencies are proposed to be engaged by Office of the Development Commissioner for Handlooms, as Cluster Management and Technical Agency (CMTA).

5. Thus, Expression of Interest (EoI) are invited for appointment of a Cluster Management & Technical Agency (CMTA) for development of Bhagalpur & its adjoining areas as Mega Handloom Cluster in Bihar.

6. The CMTA will be selected through two stages of competitive bidding process i.e. Technical Bid and the Financial Bid.

II.  Scope of work

7. The handloom weavers, due to lack of education, in-adequate working capital and lack of market facilities etc. are unable to meet the requirements of the ever-changing market demands. Coupled with this are cost affecting factors like low level of technology, poor infrastructure facilities viz dye houses, common facility centre, quality control labs, electricity, water, roads, etc. To overcome these bottlenecks and to enable institutional development, it would be essential to federate prominent stakeholders to form a Public Private Partnership (PPP) module. Mega Handloom Cluster will be taken up for their holistic development, for which comprehensive development plans would be drawn up and implemented on PPP mode. Bhagalpur Mega Handloom Cluster will cover more than 15,000 handlooms.

8. Nature and level of assistance to each of the said clusters will be need based and would include the components that are necessary for meeting the objectives, such as, Technology up-gradation, Product Diversification, Raw Material Bank, Credit, Market Development, Skill Up-gradation, Technical & Common infrastructure, Export & Marketing, Credit support, Corpus Fund for Yarn Depot, Value addition (Garmenting/apparel units etc), Plantation of food plants for mulberry/non-mulberry silk worms, Innovative ideas etc.

9. The above list is only illustrative yet not restrictive. There will be flexibility to suit the local requirements. The Project Approval & Monitoring Committee (PAMC) will decide on merit the inclusion or otherwise of a component/s in the project cost on cluster to cluster basis.

III.  Role of Cluster Management and Technical Agency (CMTA).

10. The nature of the proposed project warrants proactive technical and managerial assistance on "concept" to "commissioning" basis, for which a Cluster Management & Technical Agency (CMTA), having proven capability in terms of technical, managerial, financial, infrastructure and capacity building expertise that are required to design and execute cluster oriented interventions shall be engaged.

11. CMTA will proactively work with the cluster stakeholders and the SPV in implementation of the interventions. The illustrative list of responsibilities of CMTA is given below:

·  Conducting diagnostic study.

·  Preparing Detailed Project Report (DPR).

·  Sensitizing and mobilizing the stakeholders to be part of the proposed project.

·  Establishment and structuring of the SPV.

·  Assisting the SPV/s in formulation of the DPR of the specific projects.

·  Assisting the Ministry/SPV in releasing/mobilizing funds for the project. Such mobilization would involve preparation of proposals under relevant schemes of the Government apart from tying up loans from the banks.

·  Assisting the SPV in obtaining requisite statutory approvals/clearances.

·  Assisting the SPV in identification and engagement of service providers/ consultants for various services related to specific handloom technology, processing, designing, skill development, marketing, financing etc, for implementation/execution of the interventions outlined in the DPR.

·  Appraising the individual project submitted by the SPV.

·  Providing interfacing support and linkages between the SPV and various other stakeholders, particularly the Government organizations, buyers and financial institutions.

·  Providing periodical progress reports to the Ministry of Textiles with respect to achievements of the stated outcomes.

·  CMTA will have its continuous presence in the cluster by setting up an office in the cluster with dedicated professionally qualified suitable manpower. This office should have atleast 2 professionals with requisite qualification (MBA from reputed institute) & experience (minimum 3 years in textiles, preferably in handlooms) & one supporting staff. The office should start functioning within 30 days of issue of sanction letter.

·  Agency will deploy one dedicated professional with qualification (MBA from reputed institute) & experience (minimum 2 years) in the Office of DC(Handlooms) for providing requisite support. Suitable infrastructure will be provided by this office.

·  CMTA will not charge any fee from the SPV for providing any kind of support.

·  Any other work assigned from time to time by the Office of the Development Commissioner for Handlooms, Ministry of Textiles.

IV.  Technical criteria

12. The broad requirements to become eligible for CMTA are as follows:

v  Should have proven and demonstrable experience, expertise and resources in providing consultancy/supervisory services for holistic and integrated development of clusters.

v  Should have experience of working and development of the textile sector, preferably in the handloom/handicraft segment(s).

v  Should have experience of cluster development approach, preferably in the handlooms.

v  Should have professionals with expertise in textiles, legal, company secretariat, project financing, infrastructure planning, capacity building, technology up-gradation, market development, institutional development, etc.

v  Should have reasonable experience in areas relating to arrangement of finance management of clusters, interaction with the Central and State Governments, etc.

v  Should have either pan India presence or strong presence in the Cluster State/Area.

Note: The agency should furnish the relevant documents in support of the above.

V.  Selection Process

13. The CMTA shall be selected through a competitive bidding process. The bidding process shall be carried out in two stages i.e. Technical Bid and Financial Bid as detailed given below:

v  The technical evaluation will involve two stages i.e. Stage - I and Stage - II.

v  Stage – I Technical Evaluation, refers to short-listing of agencies on the basis of their past experience, key personnel, financial strength of the agency etc., assigning weightage to each factor.

v  Criteria to be followed in the Stage - I for qualifying for Stage - II are as follows:

Stage - I

§  Supporting documents should be submitted in respect of the above.

v  To qualify for Stage – II Technical Evaluation, the agency has to secure more than 50 marks in Stage – I Technical Evaluation. However, in any case, not more than 06 agencies in the order of merit will be invited for Stage – II Technical Evaluation.

v  Such agencies will be eligible for Technical Evaluation Stage - II and will be required to make a presentation before a Committee constituted by this office.

v  A copy of the presentation, duly signed by the authorized signatory of the agency will be submitted in advance or on the date of presentation, to this office.

v  Criteria to be followed in Stage – II Technical Evaluation is as follows:

Stage – II

v  The agency has to secure at least 70 marks in Stage – II Technical Evaluation for submission of financial bid.

v  The financial bids will be opened only in respect of those agencies, which secure 70 marks and above. In case, the number of agencies qualifying the Stage – II Technical Evaluation happens to be less than three, Development Commissioner (Handlooms) will have discretion to relax the qualifying marks of 60 marks to make at least three agencies to compete.

v  The financial bids will be opened in the presence of the representative(s) of the agency(ies), with prior intimation of date & time to the agency(ies ) concerned.

v  The agency, which quotes the lowest bid will be awarded the work.

14. The Professional Fee (including professional fee, travel, boarding & lodging, communication and all other out of pocket expenses), excluding taxes should be quoted as a percentage of the Government of India’s actual share (as released from time to time) in the project cost (GoI contribution is presently limited to Rs.40 crore). CMTA fee shall be paid on the amount released by the GOI as their share and not on the total project cost.

Illustration:

Suppose the overall total project cost (as per the DPR) approved by the Project Approval & Monitoring Committee (PAMC) is Rs.100 crore, of which the GoI share as per DPR is Rs.40 crore, but actual GOI share released during the course of implementation is Rs.35 crore. In such a case, the total Professional fee, presuming the professional fee quoted by the CMTA is Y% will be as follows:

Total Professional Fee = Rs.35.00 crore x Y%

15. The proposed Schedule of Payment of Professional fee is as follows:-

Illustration with respect to point at S.No. 2 above

Suppose: Overall Project Cost : Rs.100 crore

GoI share : Rs.40 crore

Professional fee quoted by CMTA : Y%

Professional fee payable: (Rs.40 crore x Y% X 10%) minus (Rs.5.00 lakh).

Illustration with respect to point at S.No.3 above

Illustration with respect to point at S.No.4 above

Suppose at the beginning, the DPR was approved for Rs 100 crore as overall total project cost and Rs.40 crore as GoI share. However, at the end of the project, it so happened that total actual release of amount as GoI stood at Rs. 35 crore. In such a case, total CMTA will be calculated on Rs.35 crore and balance amount, if any shall be paid and excess amount, if any paid to the CMTA will be recovered.

VI.  General terms and conditions of the work