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INDIA NON JUDICIAL

Government of Karnataka

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IN-KA915939814554430

25-Jan-2016 01 :33 PM

NONACC (FI)J kacrsfl08J JALAHALLlJ KA-BASUBIN-KAKACRSFL08321351579138980

HMT MACHINE TOOLS LIMITED

Article 37 Note or Memorandum

MEMORANDUM OF UNDERSTANDING

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HMT MACHINE TOOLS LIMITED

UNDER SECRETARY HE AND MT

HMT MACHINE TOOLS LIMITED.200(Two Hundred only)

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MEMORANDUM OF UNDERSTANDING

MEMORANDUM OF UNDERSTANDING (MoU) BETWEEN THE DEPARTMENT OFHEAVY INDUSTRY (DHI), MINISTRY OF HEAVY INDUSTRIES & PUBLICENTERPRISES, GOVERNMENT OF INDIA and HMT Machine Tools Ltd, Bangalore forthe project on "DEVELOPMENT OF TRAINING & SKILLING INFRASTRUCTURE ATSKILL DEVELOPMENT CENTRE, HMT MACHINE TOOLS LTD, BANGALORE" underthe component.

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Statutory Alert:1. The authenticity of this Stamp Certificate should be verified at ••www.shcilestamp.com ". Any discrepancy in the details on this Certificate and as

available on the website renders it invalid.2. The onus of checking the legitimacy is on the users of the certificate.3, In case of any discrepancy please inform the Competent Authority.

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"Common Engineering Facility Centre" under the Scheme on Enhancement of Competitiveness in theIndian Capital Goods Sector" (hereinafter referred to as the CG scheme) ofDHl, Government ofIndia.

This MoU regarding implementation of the Project regarding "Development of Training & SkillingInfrastructure at Skill Development Centre, HMT Machine Tools Ltd, Bangalore" under the CG Scheme,(hereinafter referred to as the "Project") is made for execution of the project on this it....(Day) ofFebruary, 2016 between parties, namely,

Department of Heavy Industry, under the Ministry of Heavy Industry & Public Enterprises, Governmentof India, having it's office at Udyog Bhawan, New Delhi (hereinafter referred to as Dill which expressionshall, where the context so requires or admits, be deemed to include its successors and permittedassignees)

AND

HMT Machine Tools Ltd (hereinafter referred to as in short as HMT MTL, which expression shall wherethe context so requires or admits, be deemed to include its successor and permitted assignees).

It is agreed by and between the parties that the project would be executed jointly within the followingobjectives, scope, deliverables and the responsibilities of each of the implementing agencies

1. DEFINITIONS

For the purpose of this MoU:

a CG Scheme means Scheme for "Enhancement of Competitiveness in the Indian Capital GoodsSector" of Department of Heavy Industry, Ministry of Heavy Industries & Public Enterprises,Government of India as indicated in Notification No. 7/6/2011- HE&MT dated 5.l1.2014published in the Gazette of India (Extraordinary) Part I, Section 1,No.264.

b 'Project Implementing Organization" (PIO) shall mean HMT Machine Tools Ltd (HMT MTL)responsible for implementing the project "Development of Training & Skilling Infrastructure atSkill Development Centre, HMT Machine Tools Ltd, Bangalore" as per the approved projectproposal.

c 'Funding Organization' shall mean DHl supporting the project financially to the extent of 80%of the project cost.

d 'Project" means CG Scheme Project "Development of Training & Skilling Infrastructure at SkillDevelopment Centre, HMT Machine Tools Ltd, Bangalore"

Contd ...3/-

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e Apex Committee CAC) constituted under CG Scheme will be hereinafter called AC- CG.Secretary, DRI is the Chairman of AC-CG Committee and Joint Secretary (HE & MT), DHI isthe Member Secretary. AC-CG is constituted by the Government of India. AC-CG shall reviewthe progress ofthe project.

f 'Parties' refer to the organizations participating in the project namely DHI and HMT MTL.

g "Approval letter" shall mean the letter No. 121 101 2014- HE&MT dated 07.01.2016communicating detailed terms and conditions of the approval of the competent authority inDepartment of Heavy Industry for the Project.

2. Objective

The Project is aimed at training and developing of skilled manpower in four trades in and aroundBangalore, Kamataka by development of Training & Skilling Infrastructure at Skill Development Centre,HMT Machine Tools Ltd, Bangalore .The Centre would also serve towards development of skilledmanpower for manufacturing sectors.

3. Plan, methodology and working procedure:

3.1 HMT Machine Tools Ltd, Bangalore, would recruit professionals from the sector, with technicalexpertise, for operations of the facilities at SkilI Development Centre. The proposed organisation structureand operations is explained below:

a. HMT MTL is run professionally by the elected Board of Directors. The key person responsiblefor the facility will be the Managing Director, HMT Machine Tools Ltd CMDM) who will alsoreport to the Board of Directors.

b. The MDM will be assisted by the General Manager, HMT Machine Tools Ltd, Bangalore in dayto day activities and functioning ofthe facility.

3.2 Maintenance of items and equipment would be carried out either in-house, or through AssetI

Management Contracts with the vendors providing the equipment, as tre need may be. The maintenancecontracts would be either periodic in nature or annual contracts, as maybe negotiated with the vendors .

.)..) The facilities will be made available to the members ofHMT MTL and the industry in general.Suitable mechanism will be put in place for the use of the facilities in an equitable manner and at areasonable price.

3.4 RMT Machine Tools Ltd, Bangalore, incorporated under t~e Company Act, 1956, would beresponsible for the operations and maintenance of the assets created un er the Project Scope.

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4. Major Milestones

4.1 Development of Training & Skilling Infrastructure at Skill Development Centre, HMT MachineTools Ltd, Bangalore shall commence from the date of release of fund by the Government of India andtraining of candidates shall commence from 3rd month onwards. The training will be conducted in 3batches in each trade with course duration of 3 months in the one year period.

4.2 Major mile stones in terms of resource allocations are listed as under:Rs In Lakhs

Particulars I Month of completion (M) M1& M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 TotalM2Maintenance of accommodation 3.00 -- -- -- -- -- -- -- -- 3.00

Remuneration of Technical Faculty -- 100 1.00 2.00 100 100 2.00 100 100 2.00 -- 12.00

Remuneration of Soft Skill Faculty -- 0.50 0.50 1.00 0.50 0.50 100 0.50 0.50 1.00 -- 6.00

Assessment & Certification -- 1.00 -- -- 1.00 1.00 -- 3.00

Expenses towards starter kit & study 2.00 2.00 2.00 6.00materials -- -- -- -- -- --

Training Room Equipment 35.00 -- 35.00

Training Room Furniture & Accommodation 32.00 -- 32.00

Total 72.00 2.50 3.50 3.00 2.50 3.50 3.00 2.50 1.50 3.00 0.00 97.00

5. Outputs

5.1 The trade wise breakup of candidates who are expected to be trained in each quarter is givenbelow:

Value in NosQualification Pack

Trade I quarter II III IVReference Number quarter quarter quarter

CSC/Q 0116 CNC Operator - VMC 30 30 30 30CSC/Q 0304 Fitter Mechanical Assembly 30 30 30 30CSC/Q 0601 Quality Inspector 30 30 30 30CSC/Q 0305 Fitter Electrical Assembly 30 30 30 30

Sub Total Per quarter 120 120 120 120Grand Total 480

Contd ...5/-

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5.2 Physical and Financial Targets:

Year Physical Targets Project Cost• Maintenance of Accommodation• Training Room Equipments

2015-16 • Training Room Furniture and Accommodation Rs. 79 Lakhs• Remuneration for faculty for 3 months• Assessment and Certification Expenses• Remuneration for faculty for 6 months Rs. 18 Lakhs2016-17 • Assessment and Certification Expenses

Total Project Cost Rs. 97 Lakhs

5.3 A project summary is attached at Appendix 'A'. Item wise details of proposed expenditure oftheproject is attached at Appendix 'B'

6. Mode of Financing

6.1 The project cost will be jointly funded by the Department of Heavy Industry, Ministry of HeavyIndustries & Public Enterprises, Government of India (DHI) and HMT Machine Tool Ltd in the ratio80:20 without violating any condition of the Scheme / GOl Rules. DHI funding will be limited toRS.77.60 Lakhs.

6.2 Funds will be released by DHI in the designated Escrow Account after receiving confirmation ofcontributions by other funding partners. Release of fund will be subject to fulfilment of terms andconditions of this approval letter, paragraphs 8 and 12 of the Gazette Notification dated 5.11.2014 andrelevant Government order/ General Financial Rules, particularly Rules 206- 212 and 215(3) ofGFR.

6.3 DRI Budgetary grant will be released in One Instalment. Utilization of budgetary grant will besubject to and in compliance ofterms and conditions of the Sanction Letter.

6.4 Release of funds shall be arranged by DHI after signing of this MoU and subject to fulfilment offormalities associated with release of Grants-in-aid in accordance with Government Rules andinstructi ons.

7. Funding parameters of the Project

7.1 The project is partly funded by DRI under the CG scheme through Grant in aid as indicated inparagraph 6.1 above. The total approved financial outlay of the project as per approved proposal is Rs.97Lakhs (Rupees Ninety Seven Lakhs only). This is the total cost of the investments towards developmentof Training and Skill Infrastructure at Skill development Centre The grant- in- aid amounting to 80% ofthe project cost ie Rs 77.60 lakhs should be utilized for the purpose of CEFC only. Utilization of thegrant- in- aid would result in output! achievement of the targets as indicated in paragraphs 5.1 and 5.2above

Contd ...6/-

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7.2 Unless otherwise specified, funding by the Department of Heavy Industry will be limited to theDevelopment of Infrastructure at Skill Development Centre and human resource for training and will begoverned by the relevant provisions of General Financial Rules (GFR) read with the DHl Notificationdated 5th November, 2014 on Scheme on Enhancement of Competitiveness in the Indian Capital GoodsSector published in the Part I Section 1 of the Gazette of India Notification (Extraordinary) dated 05-11-2014 bearing no, 7/ 6/ 2011- HE&MT ( as amended from time to time) and other Government orders andwill be subject to terms and conditions of the approval letter.

8. ROLE AND RESPONSIBILITIES OF PROJECT IMPLEMENTING ORGANIZATION(also known as Grantee Organization):

8.1 The Project Implementing Organization (PIO) shall be responsible for timely delivery of theoutput subject to timely receipt of funds from DHl.

8.2 The PIO shall maintain a separate escrow account for the funds released by DHI for execution ofthis project.

8.3 The PIO shall make arrangements for proper operation and maintenance of equipment /knowledge procured under the project. The PIO shall acknowledge procurement of equipment under thisproject by a "TRUST RECEIPT" which is attached to this document as Appendix C.

8.4 The PIO shall ensure that the funds released are utilized only for the purpose of the Project.

8.5 The PIO shall provide free access to DHl officers (or nominees / representatives) and the ApexCommittee- Capital Goods Scheme (AC-CG) members and their representatives to all facilities/ assetsand their records relating to the project located at their worksite.

8.6 The PIO shall also be responsible for achieving and regular reporting the progress of the projectto DHL PIO shall also submit its Standard Operating Procedure (SoP), proceedings of Governing Council/ Board and such other documents, which contain information pertinent to the project.

8.7 The PIO shall maintain a register of permanent and semi-permanent assets acquired wholly ormainly out of the grant- in- aid as well as log for use of them. The PIO should maintain proof of havingprocured genuine new items from the vendor along with invoices, payment receipts and market value ofthe specifically procured items. The Register/log shall be open to inspection by the Department of HeavyIndustry. The utilization of assets so created shall be in public interest and shall be the responsibility ofthe PIO.

8.8 The PIO will ensure that assets will not be disposed of / sold / transferred / leased / rented /without prior approval of (AC-CG).

Contd ...7/-

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8.9 The PIO will not load DHI grants into the revenue formula, while determining charges/ fees forskill development! training.

8.10 The PIO will ensure that the - training / skill development programs are relevant to the CG sectorunits particularly those belong to Micro, Small and Medium Enterprises sector at charges equal to orlower than the market rates.

8.11 The PIO shall also be responsible for adhering to law of the land including rules of central, Stateand local Governments in its operation.

8.12 The PIO shall indemnify and protect Government oflndia from all costs, damages and expensesarising out of any claim, action or suit brought against Government of India by third parties in respect ofany infringement of any patent, registered designs or Intellectual Property Rights resulting from use ofany technical information, data or process or design belonging to or used by the PIO and/ or furnished toGovernment oflndia.

8.13 The PIO will adhere to and follow the Labour Acts and Rules while executing this contract andshall keep the Government of India indemnified and protected from all claims, costs, damages andexpenses arising out of any violation of Labour Acts and Rules.

8.14 The PIO, shall under the project cost, insure and keep insured all the items and equipments etc.acquired for implementation of the Project, for a minimum period of2 years by utilising the grant-in-aid.In case of loss or damage of such item and equipments, etc. the insurance benefit will be payable to theGovernment of India.

9. MANDATORY OBLIGATIONS

9.1 It is obligatory on the part of HMT Machine Tools Ltd, Bangalore, to ensure free access toAC-CG members, Review Committee Members / DHI officials/ its representatives to all facilities/ assetsand records relating to the project located at their works. Full documentation pertaining to commonfacilities (including machinery, assets & facilities) will be made available to DR!.

9.2 The PIO shall duly acknowledge DHI for funding this project in all publications, reports,publicity, presentations materials, assets/ facilities created, events etc.

9.3 The items, equipment, facilities created by the PIO wholly or substantially out of Governmentgrants, except those declared as obsolete and unserviceable or condemned in accordance with theprocedure laid down in the G.F.R., shall not be disposed-of encumbered or utilized for the anotherpurpose/ project, without obtaining the prior approval of the authority which sanctioned the grants. Incase of winding up or dissolution ofthe organization all the assets acquired to that effect out of the grants-in-aid by the Ministry should be returned forthwith to the Government ofIndia.

9.4 The PIO shall be required to maintain subsidiary accounts ofthe Government grant and furnish tothe Accounts Officer a set of audited statement of accounts after utilization of the grants-in-aid orwhenever called for.

Contd ...8/-

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9.5 The accounts of the grants shall be open for inspection by the authority approving the grant in aidand audit, both by the Comptroller and Auditor General ofIndia and Internal Audit party of the PrincipalAccounts office of the Department of Heavy Industry whenever the grantee institution! PIO is called uponto do so.

9.6 The annual report and audited accounts of the PIO will have to be submitted to the Ministry inHindi & English in required numbers by the grantee to be laid on the table of the both Houses ofParliament within stipulated period ofthe close of the succeeding financial year if the non-recurring grantis Rs.SO lakhs and above as one time assistance.

9.7 The expenditure on the project should not exceed the approved cost and financial target indictedin paragraph 5.2 above.

9.8 The PIO is required to submit performance-cum-achievement reports within one month afterevery quarter and a statement of unspent balance after every month.

9.9 The PIO may keep in view all the economy instructions while incurring the expenditure. Theorganization shall not incur any expenditure on those items, the purchase of which has been banned.

9.10 A penal interest is chargeable if the PIO fails to furnish progress report! Audited statement ofAccounts/ Audited Utilization Certificate etc. within the specified period after release of grants- in- aid inthe event of short closure of the project due to non-technical reasons.

9.11 In the event of any liquidation or bankruptcy proceedings or any threatened distress action againstthe PIO or any of its items and equipment procured for the purpose of the Project out of or with thesupport of grant- in- aid shall be outside such proceedings and the GOI may assume the control andmanagement of the PIO and appoint any of its officer or authorized representative to run the Project.

9.12 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 source of profit, then PIO shallforthwith refund the amount of grants-in-aid to Government oflndia.

9.13 The grantee organization shall not utilize the interest earned on the recurring! non-recurringgrants in aid, released to it for any purpose. The interest earned shall be indicated in the UtilizationCertificate (UC) and will be refunded to the Department of Heavy Industry after grants in aid sanctionedis utilized.

9.14 No financial decision will be taken in the Board/ Governing council! Project coordinatingmechanism of PIO without the presence of DHI nominee or without approval of DHI.

Contd.,,9/-

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10. ROLE AND RESPONSIBILITIES OF PROJECT COORDINATING ORGANIZATION - DHI

10.1 DBI will approve and provide grants and review the progress ofthe project.

10.2 A nominated Officer of DRI for the project will represent DBI in the Board/ Governing Council!Project Co-ordination Mechanism ofPIO.

10J Dill would release the funds to (PIO), ie HMT Machine Tools Ltd, Bangalore, in the designatedProject Account for execution ofthe project depending upon the financial, technical and physical progressof the project and recommendations ofthe nodal officer.

10.4 DID will monitor utilization of Grants by PIO so that the funds released are utilized by PIO onlyfor the purpose of the project component for which it is released.

10.5 Joint Secretary (RE& MT), DHl shall be the contact person for all matters concerning the project.

11. MONITORING PROGRESS

11.1 The PIO will furnish the progress (Technical and Financial) of the project in reference tomilestones for each quarter within a month after completion of the quarter in compliance with paragraph16.2 of the Scheme Guidelines. For the purpose of furnishing quarterly reports, the 1st quarter starts inJanuary 2016 for year 2015-16 and April of every financial year. The Quarterly Progress Reports (QPR)are to be furnished in the prescribed formats for reporting technical and financial progress.

11.2 Joint Secretary (HE&MT) of DBI (or his authorized representativets) will monitor theprogress of the project with reference to the milestones specified in the project schedule. If necessary ateam could undertake physical verification. DRl reserves the right to outsource fulll part work of physicalverification.

11.3 Progress reporting may be done online, if such a system is made available by DID.

11.4 Other steps for progress monitoring shall be as per the Notified CG Scheme Guidelines onNovember 5, 2014 and lor orders of Screening Committee.

12. PROJECT REVIEW BY DHI NODAL OFFICER

12.1 In case monitoring points to deviations, the progress of the projects will be reviewed by the DIDNodal Officer(s) along with beneficiary units in reference to set Project Schedule/ milestones and output.

12.2 Overall performance of the scheme will also be reviewed at least once in every six months

12.3 DBI Nodal officer will submit his report to the Screening Committee for its progress review fromtime to time.

Contd ... l01-

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J 2.4 Other mechanism for monitoring shall be as per the Notified CG Scheme Guidelines to be readwith orders of Apex Committee issued in this regard from time to time.

13. PROJECT REVIEW BY APEX COMMITTEE OF THE CG SCHEME (AC- CG)

13.1 The Screening Committee will consider the report of the Nodal Officer and the quarterly progressReport furnished by the PIO and send its comments/ recommendations along with the copy of theQuarterly Reports to the Apex Committee.

13.2 The Apex Committee will review the progress of the project which has been approved by it.

13.3 If necessary PIO may be invited during progress review at AC-CG.

13.4 The AC -CG may send its own teams for physical verification, particularly in cases where theprogress has not been as per milestones set.

14. PROJECT REORIENTATION

The scope and the work! activities of the project can be re-orientated without deviating from broadobjective and scope of the approved project, based on the recommendations of nodal officer, ScreeningCommittee and approval of AC-CG

15. FUND UTILIZATION CERTIFICATE (UC) AND PROJECT ACCOUNTS

15.1 PIO shall submit the Fund Utilization Certificate (UC) in the specified format (Form GFR 19A)alongwith progress report and a certified copy of project account statement duly remarked I reconciled.

15.2 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".

15.3 The UC in respect of utilization of grants for the purpose/ object for which it was sanctionedshould be furnished by PIO with an audited statement of accounts, within stipulated period of the closureof the financial year. The utilization certificate should also disclose whether the specified, quantified andqualitative targets that should have been reached against the amount utilized, were in fact reached, and ifnot the reasons thereof. They should contain an output based performance assessment. An DC of thereleased / utilized amount will be submitted without fail before the end of the next financial year. It willcontain a certificate that previous DCs (wherever applicable) has been submitted to the satisfaction oftheDepartment of Heavy Industry.

15.4 The project accounts will be maintained as per the GOI GFR and best practices. Name/s ofauthorized signatories will be informed to DH!.

Contd ... ll1-

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15.5 The Accounts duly audited by external auditors shall be forwarded to DHI at the end of eachfinancial year.

15.6 Unspent balances/ bank interest / other earning will be taken into account in the Project. Anyinterest! investment returns received on account of DHI funds will be counted as DHl grant within theoverall sanction. TJC will contain statement of such income. The interest earned shall either be adjusted inthe next release or shall be refunded to the Department of Heavy Industry after grants in aid sanctioned isutilized.

15.7 Grants / bank interest spent on purposes other than sanction will attract heavy penalties and otherpunishments as per the provisi ons of law of the land.

15.8 Utilization of Fund and maintenance of Accounts should be done in accordance with relevantprovisions ofGFR and will be subject to Govt. Audits / CAG audits.

16 PROJECT COMPLETION & TECHNICAL REPORT

16.1 A project will be deemed to be completed when all outcomes have been achieved.

16.2 The project completion (facilities created) will have to be assessed in consultation with DHI andCG sector.

16.3 The PIO will report the project closure to the Joint Secretary (HE&MT),DHI. The Report will besubmitted to the Screening Committee constituted under the Scheme.

16.3 The PIO shall make a presentation to the Screening Committee on project completion.

16.4 DHI nodal officer and/or an Expert Committee appointed by the Screening Committee willphysically verify project completion and give their report to the AC-CG.

16.5 The AC-CG will finally approve the request of project completion on merits.

16.6 Based on approval by AC-CG, DHI will issue project closure certificate and also settle anyremaining grants/ financial dues.

16.7 Project time overruns will have to be justified to AC-CG/ DHl.

16.8 Project cost overruns are not be entertained by DHI. However, DHI-AC-CG will have to be inloop including early warnings. Further action will be taken as per Government Order.

16.9 Project failures (part or full) will have to be justified to DHI AC-CG. Further action will be takenas per Government order.

16.10 All decision of AC-CG will be binding on PIO.

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16.11 The PIO shall submit a Project Completion Report (Technical cum Financial) along with a softcopy in CD (preferably in MS word format) to the nodal officer in DHI within one month of thecompletion of the project irrespective of holding of AC-CG. The PIO shall also furnish the feedback,suggestions and project evaluation along with the project completion report. Such completion reports willbe used for CG-Scheme evaluation and drafting Roll-out Phase of the CG-Scheme.

17. STATUTORY REQUIREMENTS

17.1 All aspects of this Skill Development Centre will be carried out by the PIO in accordance withstatutory provisions like Workmen's Compensation Act, Labour (Regulation and Abolition) Act, ContractLabour (Regulation and Abolition) Act, Employees Provident Act or any other related enactment passedby the Parliament or State Legislature and any rules/ laws made thereunder by the either Central orrespective State Governments.

17.2 Since the project is sanctioned to the PIO, it shall not be transferred to any otherInstitution/Organisation. Transfer of project money within the Organization or with other Organizatoinsunder the same Management is not permitted under any circumstances.

17.3 If the force majeure conditions continue beyond six months, the signatories shall then mutuallydecide about the future course of action.

18. FORCE MAJEURE

None of the participating agencies / bodies shall be held responsible for non- fulfilment of theirrespective 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 suchevents, the party affected thereby shall give a notice in writing to the other party within one month of suchoccurrence or cessation.

19. Validity of MoU

This MoU comes into force on the date of signing and will be coterminous with the expiry ofthevalidity of the Approval Jetter.

20. Amendments to the MoU

No amendment or modification of this MoU shall be valid unless the same is made in writing byall the parties or their authorized representatives and specifically stating the same to be an amendment ofthis MoU. On part of DHI approval of the Apex Committee will be a pre requisite for making anyamendment to MoU. The modifications/ changes shall be effective from the date on which they are made/ executed, unless otherwise agreed to.

Contd ...13/-

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21. Resolution of disputes

In the event of any dispute between the parties to this Memorandum of understanding, it will be resolvedas per the Indian Arbitration and Conciliation Act 1996.

22. Jurisdiction

The courts at Delhi shall have jurisdiction in all matters concerning this MoU including any matter arisingout of the arbitration proceedings or any award made therein.

23 Governing Law

Notwithstanding anything contained in this Memorandum of Understanding, in case of any conflictbetween any of the provisions of this Memorandum of Understanding with provisions of DRINotification on CG Scheme dated 5.11.20141 General Financial Rulesl and other relevant GovernmentInstruction(s)/ Order(s), the later will prevail. Right of interpretation ofDHl Notification on CG Schemedated 05-11-20141 General Financial Rulesl Government Instruction(s)1 Order(s) for this purpose shallrest with the Secretary, Department of Heavy Industry.

24. Termination

24.1 Termination by DHI: DHI may terminate this arrangement upon 30 calendar days notice inwriting 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 MoU, within30 days of being notified of such a failure, or within such further period as DHI may havesubsequently 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 a material portion of itsobligations for a period of not less than 30 days.

24.2 Termination by PIO: The PIO may terminate this MoU upon 30 calendar days notice in writingafter occurrence of any ofthe events specified in paragraphs below:

(a) IfDHl or HMT MTL fails to pay any monies due to the PIO pursuant to this arrangement within60 days after receiving written notice from the PIO that such payment is overdue;

or(b) If, as the result of Force Majeure, DHI is unable to perform a material portion of its obligations for a

period of not less than sixty days.

The termination of this MoU shall not prejudice or affect in anyway, the rights and benefits accrued orliabilities and duties imposed on the Parties ofthis MoD.

Contd ...14/-

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IN WITNESS WHEREOF PARTIES HERETO HAVE ENTERED INTO rms MoU EFFECTIVE ASTHE DAY AND YEAR FIRST ABOVE WRITTEN.

For and on behalf ofDHI Witness

For and on behalf ofHMT Machine Tools Ltd

Witness

JS(HE &MT)

Managing Director

Appendix A(Paragraph 5.3)

ONE PAGE SUMMARY ON THE "PROJECT"

Skill Development Centre by HMT Machine Tools Ltd, Bangalore,

EXECUTIVE SUMMARY

Project Title Development of Training & Skilling Infrastructure in four trades at HMTMachine Tools Ltd, Bangalore.

TARGET : To provide skilled manpower in four trades to suit the requirement of CGSector - machine Tools as part of Skill India Mission. (30 candidates per batchper quarter for each trade).

Project Duration : One year

Project Outlay : Rs. 97 Lakhs

Main Sponsor : Dept. of Heavy Industry, Ministry of Heavy Industry & Public Enterprises,Government of India

Project execution HMT Machine Tools Ltd, Bangalore.

Project Stakeholders: HMT Limited, Bangalore.

Objectives & Outcome of the Project:

The objective of the project is to train and develop skilled manpower to address the skill gap in CGsector in general and machine tools in particular within and around Bangalore by setting up SkillDevelopment Centre at HMT Machine Tools Ltd, Bangalore. The Centre would run short term trainingcourses with emphasis on practical training.

Benefits

Major beneficiaries will be the manufacturing industries in and around Bangalore. They would reap thebenefit of acquiring skilled manpower without any investment in training. The skilled manpower willhelp in improving their productivity, quality and enhance the standards of manufacturing industry, etc.

Appendix B(Paragraph 5.3)

ITEM-WISE DETAILS OF PROPOSED EXPENDITURE FORHMT-TSI AT BAN GALORE

81.No. Details

EstExpenses

I 1 Rs.TRAINING ROOM EQUIPMENT (A1)

1 Hand Tools and Measuring Equipment 2,75,0002 Safety Equipment 6000003 Computers 15000004 Computer Software 2250005 CAD software 5000006 Computer Accessories 400000

Sub total A1 35,00,000TRAINING ROOM FURNITURE (A2)

7 LCD OHP 5750008 Basic aminities like table and Wardrobe 8000009 Computer Table & Chair (For Lab) 750000

10 Safety ware and Accessories 87500011 Communication & Internet Facilities 500000

Sub Total A2 3500000Total Onetime Expenses A1+A2 70,00,000

PER QUARTER EXPENSES (8)

Remuneration for Technical Faculty (Per Quarter) 400000Remuneration for Soft skill Faculty (Per Quarter) 200000Assessment and Certification Expenses 100000Expenses towards Starter Kit and Study Materials 200000

Total Per quarter Expenses 900000Total Expence for Three Quarter 2700000Total funds sought = A1+A2+B 97,00,000

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Appendix C(Paragraph 8.3)

TRUST RECEIPT

1. In the matter of approval letter dated 1 12/2015 by Department of Heavy Industry (DHI),addressed to HMT Machine Tools Ltd, Bangalore, regarding the Development of Training & SkillingInfrastructure at SlGl1Development Centre, HMT Machine Tools Ltd, Bangalore.

2. The Items and Equipments though purchased in the name ofHMT Machine Tools Ltd, Bangalorewith the funds provided by DHI, for the subject project, wil1 be with HMT Machine Tools Limited,Bangalore during the implementation of the project and thereafter till they are useful for the purposestated in the above Approval letter.

3. The Items and equipments will not be transferred or disposed of by HMT Machine Tools Ltd,Bangalore, without the prior written approval ofDHI, and would remain with them.

4. IN WITNESS THEREOF HMT Machine Tools Ltd has executed these presents on ~DA Y ofDee.ll~ecr~.-h.b~ri ~\'-

Signed by

SI.No. Name Occupation & Address Signature

1 1). 'N\. SftIVlr-SI-t*-N ~ Mo.~~ JJtt&ei« I(L "4. ol.D ',..0 (...,.#-MT MTL-

For and on behalf of the HMT Machine Tools Ltd in the presence of Witnesses:

SI.No, Name Occupation & Address Signature

1