MOU/AGREEMENT TO BE ENTERED INTO BY BENEFICIARIES OF:
(1) MINI MISSION –III OF TMC

THIS Memorandum of Understanding (MOU)/AGREEMENT made at _____  this ______day of _______,  BETWEEN the Government of India through Technology Mission on Cotton, (TMC) constituted by the Ministry of Textiles, Government of India, and hereinafter referred to as “the Government of India” of the One Part AND Directorate of  Agricultural Marketing, State of ……………….. and Agricultural Produce Market Committee,   in the State of …………………, hereinafter referred to  jointly as  ‘’the Board /Committee” of the Other Part.

W H  E R E A S

(i)In order to improve the production, productivity and quality of the Indian cotton, the Government of India has set up the TMC with the objects, inter alia, of setting up of new cotton market yards to provide better facilities for cotton marketing and to reduce the contamination of cotton as well as to generate higher margin of profit to the cotton growers or the farmers;

(ii)To achieve the above objectives, the Government of India has offered to share the expenditure of setting up of new market yard with the Board /Committee and the Board /Committee has accepted the said offer of the Government of India;

(iii)On the above premises an agreement has been arrived at between the Government of India and the Board /Committee on the terms and conditions as hereinafter contained;

NOW THIS AGREEMENT WITNESSETH AND IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:

1.That the Directorate/Board/Committee shall carry out the work of improving/activating the existing cotton market yard facilities in the market yard of ……………………/setting up of new cotton market yard at …………………… in the state of ………………………………. (use phrases as appropriate) in accordance with the proposal submitted in that behalf by the Directorate/Board /Committee to the Government of India through the TMC and sanctioned by the TMC on behalf of the Government of India with or without modifications as set out therein. The said activity of improving/activating the existing/setting up of new cotton market yard (use phrases as appropriate) is hereinafter referred to as “the Improvement Program”

2.That the total cost or expenditure involved in the Improvement Program shall be shared between the Government of India through the TMC and the Directorate/Board/Committee in the proportion of 60% and 40% respectively.

3.That the cost or expenditure involved in the Improvement Program shall be first borne by the State Directorate/Board/Committee from their own resources and from time to time, such cost/expenditure to the extent of its share of 60%, depending upon the progress of the Improvement Program, shall be reimbursed by the Government of India through the TMC.

4.That the Directorate/Board/Committee shall accept the parameters and the consequential requirements of an ideal market yard as identified by the TMC on behalf of the Government of India.

5.That the Components of a market yard covered by the Improvement Program will be subject to the review of the TMC and the changes suggested by the TMC in order to conform to the defined requirements shall be accepted by the Directorate/Board/Committee. However, incremental expenditure, if any, on account of such changes shall be entirely borne by the Directorate/Board/Committee.

6.That the equipments/machineries to be purchased/installed under the Improvement Program shall bear the ISI marks or as approved by the TMC.

7.That the work involved in the Improvement Program shall be carried out only by the Engineering Cell of the State Agricultural Marketing Board or, in the absence of such an Engineering Cell, by the Central/State Public Works Department or by a State Government agency. Supervision ( Centage ) charges charged by the executing agency, if any, shall not exceed 15% of the project cost and such charges in excess of 15%, if any, shall be borne by the Directorate/Board/Committee.

8. That the Improvement Program shall be carried out by the Directorate/Board/Committee in accordance with the guidelines prescribed by the TMC in this behalf from time to time.

9.That the Government of India through the TMC shall have the right to periodically review the progress of the improvement Program for the completion thereof within the stipulated time.

10.Directorate/Board/Committee shall submit monthly progress reports of the Improvement Program to the TMC.

11.That the Improvement Program shall be completed in all respects by the Directorate/Board/Committee within the time stipulated by TMC in that behalf. An extension in the project completion period, not exceeding six months, may be granted by the TMC in its absolute discretion if it is fully satisfied by the grounds furnished by the Directorate/Board/Committee in that behalf. Any cost overrun due to such delay/extension shall, however, be borne entirely by the Directorate/Board/Committee.

12.That if the cost/expenditure of the Improvement Program is to be shared between the Committee and the State Agricultural Marketing Board towards the 40% state share or to be borne entirely by the Committee, the State Agricultural Marketing Board shall certify the financial capability of Committee to share such 40% of cost/expenditure of the Improvement Program.

13.That the Directorate/Board/Committee shall be solely responsible for the proper cleanliness, maintenance and up-keep of the market yard covered by the Improvement Program.

14.That if a laboratory for grading is installed in the market yard, the same shall be maintained and staffed by the Directorate/Board/Committee from its own resources.

15.That the Directorate/Board/Committee shall introduce within three months from the date of this tripartite agreement, the daily auction system for kapas if it is not already in existence.

16.That the Directorate/Board/Committee shall provide sufficient staff for the day to day activities/operation of the market yard and shall have an elected market committee for such yard before the completion of the Improvement Program.

17.That Directorate/Board/Committee shall ensure that the farmers receive the payments for their produce brought to the market yard, within one week of the sale thereof.

18.That the kapas brought by farmers to the market yard for sale shall be covered by the Directorate/Board/Committee under an appropriate insurance scheme till its ownership is transferred to the buyer thereof.

19.That the Board /Committee shall ensure that all village sales of kapas, if any, are stopped within one year of the completion of the Improvement Program. The Government of India shall be entitled to monitor the same after the completion of the Improvement Program with respect to such yard.

20.That the Directorate/Board/Committee shall provide all facilities to the TMC for taking inspection at any time of the market yard for verifying the progress/ implementation of the Improvement Program.

21.That the Directorate/Board/Committee will ensure that a display board will be placed prominently in the market yard itself where it will be clearly written that the said market yard has been improved under Mini Mission III of Technology Mission on Cotton, a centrally sponsored Scheme of the Ministry of Textiles, Government of India, New Delhi.

22.That the Directorate/Board/Committee is unable to complete the Improvement Program within the stipulated time or the extended time (as the case may be) or fails or neglects to carry out the Improvement Program or fails to stop village sales, as stipulated hereinabove, then and in such event, the Government of India through the TMC shall be entitled to call upon and require the Directorate/Board/Committee to refund the 60% share of the cost/expenditure borne by the TMC, and the Board /Committee shall be bound and liable to forthwith refund the said amount to the TMC along with simple interest thereon at the rate 18 % p.a.

23.There may be cases when produce other than cotton may come to the market yard for which financial assistance is being provided under improvement programme of Mini Mission III of TMC; in such cases priority will be given to cotton over other commodities.

24.That it is agreed that if any dispute or difference arises between the parties hereto in the course of the implementation of this agreement or the Improvement Program or if any issue arises relating to the same or as to the interpretation of any of the terms of this agreement, such dispute, difference or issue shall be referred to the Secretary of the Ministry of Textiles, Government of India, New Delhi, whose decision and orders/directions shall be final and binding upon the parties hereto. Such reference to the said Secretary to Government of India, shall be made entirely at the cost and expenses of the Directorate/Board/Committee, which shall also bear and pay the cost/expenses incurred by the said Secretary to Government of India, and by the TMC with respect to such reference.

25.That the Directorate/Board/Committee shall be solely responsible for the installation of animal catcher (have) in the market yards so that unwanted animals may not enter the market yard and cause contamination to cotton.

IN WITNESS WHEREOF the parties hereto have hereunto and to the duplicate hereof set and subscribed their respective hands and seals the day and year first hereinabove written.

SIGNED SEALED AND DELIVERED by the withinnamed the Government of India   through the Technology Mission on Cotton  by its duly authorised  Officer ………………………… ………….. in the presence of Mr./Mrs. ___________	))))
SIGNED SEALED AND DELIVERED by the withinnamed Directorate of Agricultural Marketing, State of ……………..  by  its duly authorized Executive/Officer Mr./Mrs…………………………………………………………….. in the presence of Mr./Mrs.____________ AND	)))))
SIGNED SEALED AND DELIVERED by the withinnamed Agricultural Produce Market Committee, ……………………State of ……………………. by its duly authorised Executive/Officer Shri ………………………………………………………………… in the presence of Mr./Mrs. __________	)))) )