1. 1 Vocational Training Improvement Project States’ Obligations and Responsibilities S.A.A. Alvi World Bank

2. 2 States’ Obligations and Responsibilities  Sign MOU and Addendum to MOU to demonstrate commitment to carry out reforms in institutional management  Constitute a 10 member State Steering Committee (p 48 of PAD)  Hold at least quarterly meetings of the SSC (p 48 of PAD)  Maintain active and effective industry participation in the SCVT  Establish an adequately empowered SPIU ( staffed as suggested on p 48-49 of PAD) with the State Director for Vocational Training as its head

3. 3 States’ Obligations and Responsibilities  Ensure adequate budget provision for each Project year  Ensure timely release of the required funds to SPIU and project and non-project ITIs  Facilitate formation of an appropriate Institute Management Committee (IMC) with about 11 members for each project ITI ( as suggested on p 51 of PAD )  Grant adequate autonomy to IMCs to discharge their assigned functions ( see MOU and p 51 of PAD )

4. 4 States’ Obligations and Responsibilities  Based on the merit of IDPs, recommend eligible ITIs (MOU and p 40 of PAD) to the DGE&T for final selection either for funding as a COE or for strengthening the existing trades  Ensure posting of a full-time Principal in each Project ITI throughout Project Life  Grant financial powers (Rs. 25000 for small purchases and Rs 9 lakhs per contract with ITI purchase Committee approval) and administrative powers to the Principal of each Project ITI ( as per the MOU )

5. 5 States’ Obligations and Responsibilities  Ensure that instructor vacancies do not exceed 10% of the sanctioned strength in the entire Project ITI at any time during the Project Life,  Limit salary expenditure to 80% of each project ITIs annual recurring expenditure  Create and fill additional instructor positions for COE  Ensure at all times full compliance with the Environment Management Framework, Equity Assurance Plan, Disclosure Management Framework ( p 65-66 of PAD ), and the agreed procedures for Financial Management and for Procurement of Goods, Civil Works and Consultant Services

6. 6 States’ Obligations and Responsibilities  Ensure that expenditure on civil works on all Project ITIs does not exceed 25% of the total project expenditure in the State (central + State share)  Facilitate deputation of instructors for various types of training as per training plans developed by the NPIU in consultation with the SPIUs

7. 7 States’ Obligations and Responsibilities  Facilitate establishment of MIS facilities in the SPIU and in each ITI  Facilitate training of SPIU and ITI staff in the operation of MIS  Ensure that the SPIU and ITIs keep the MIS properly and regularly updated  Facilitate establishment of Training, Counseling and Placement Cell (TCPC) with a designated TCPO in each Project ITI

8. 8 States’ Obligations and Responsibilities  Seek Incentive Funds (in 2009-10 and 2010-11) and Innovations funding as per the agreed procedures and norms  Seek funding for establishing an ITW in a well performing COE for imparting entry level training  Start 4-week refresher training for instructors in one or more COE  Ensure that the concerned accounts staff from SPIU and Project ITIs participate in the NPIU organized training programs on Financial Management and Procurement, and also that the staff so trained are kept in their respective positions throughout Project Life.

9. 9 States’ Obligations and Responsibilities  Ensure timely submission of quarterly Interim Unaudited Financial Reports (IUFRs) to the NPIU for seeking reimbursement from the World Bank  Ensure timely conduct of statutory financial audit and submission of audit report before the agreed deadline

10. 10 States’ Obligations and Responsibilities  Ensure periodic visits of SPIU staff to ITIs for on- site project monitoring  Host visits of NPIU and World Bank teams to the State and ITIs for on-site implementation guidance  Provide data, information and reports to the NPIU as required from time to time  Participate in semi-annual, mid-term and end-term Joint Review Missions