DEVELOPMENT SUPPORT AGENCY OF GUJARAT (An autonomous Society promoted by Tribal Development Department of Government of Gujarat)


Working Note on Public Private Partnership for Development & Implementation of Economic Projects

The Chief Minister of Gujarat has recently announced Van Bandhu Kalyan Yojana (Chief Minster’s Ten Point Program) for the development of 43 ITDP Talukas from 11 predominantly tribal districts of the State. This programme aims at ensuring very high quality social and civil infrastructure and sustainable employment in these areas such that the income of every tribal family doubles in next five years.

This massive task will be made possible by Public Private Partnership in identified sectors for which conditions are favorable. A policy framework (About the Programme) for this purpose is already in place . Proposals are invited from reputed private sector units for development and implementation of labour intensive projects from sectors like manufacturing, services, animal rearing and agriculture diversification including horticulture, floriculture, mushroom cultivation, organic farming.


Agriculture Diversification: This sector will cover any modern land based activity for which private sector is willing to bring latest technology & practices. Some of the potential projects can be-

• Introduction of low risk & high productivity crops;
• Organic Crops, crops improved with help of biotechnology, exotic fruit & vegetable crops;
• Medicinal plant, floriculture, horticulture, mushroom cultivation, etc.;

For details of broad parametersoo of such projects, please see the (PPP GR) . Basically such projects should be designed keeping in view the geographical conditions of the area and marketing potential, include support activities like irrigation and land development and cover all the stages of value chain. If the interested private sector unit does not have expertise in any stage of value chain, it can form a consortium with other groups to complete the chain.

Service sector: The 43 ITDP talukas have a good mass of higher Secondary pass outs who, with good and intensive training can become very useful workers in service sector. Temperamentally, youths from this area are diligent learners and soft spoken. In addition to this, a large number of families from tribal areas migrate to take up unskilled work in construction and agriculture sector. Skill improvement programmes in these areas will improve their productivity and increase their income level. Some of the potential areas can be:

• Designing and implementation of innovative skill up gradation programmes for transport and construction sectors;
• Setting up of modern dedicated training centers to impart training for hospitality, office management, patient attendants, etc.;
• Personality development programmes that can groom youth for the industrial and other service sectors ;
• Training for low end IT enabled services; and
• Training in traditional crafts especially bamboo work;

Art-Craft based Enterprises: The project should aim self employment by harnessing art/craft market. The project will create large scale employment hub in a group of villages by training them to use the traditional art/craft based skill to make marketable art pieces. The villages will be linked to the high end market to sell the artifacts and services at premium prices. The project will cover infrastructural support. The project will consist of

• Establishing state of the art training institutes;
• Performing art can be improved, imparted modern inputs and organized to hold tours and perform in private functions/ parties;
• Training of dance trainers for traditional as well as modern dance forms and
• Developing art & craft villages.

Sports Related Activities: There is good demand of Trainers, Physiotherapists, Yoga trainers, Aerobic trainers and Lifeguards in schools, gymnasiums, health clubs and swimming clubs. It can be used as an opportunity for employment by training tribal youth in specialized courses. This can be done by

• Setting up training institutes dedicated to sports related training;
• National level/international level organizations/ institutions can be engaged to prepare course curriculum;
• Schools/ colleges can setup separate units in the campus to run such courses; and
• Such centers will be provided support to set up modern, state of the art infrastructure for the purpose.

Further details for creation of skill training centers are available at .

WHO CAN PARTICIPATE: Any agency with relevant experience and capable in technical, financial and human resource terms can be a partner in these projects. The partners can be private sector units, co-operatives or public sector undertakings.

FUNDING MECHANISM: D-SAG has been provided with adequate funds to fully support poor Scheduled Caste participants through a mix of subsidy and credit. The available funds will be channelised through the implementing partners. Non tribal BPL families will be assisted by dove tailing DRDA funds.

D-SAG will provide single point inter phase to the projects proposed under Chief Minister’s Ten Point Programme. Government will also backup these projects by creating infrastructure support by improving the roads, power and water supply. Communication of the area will be improved by providing broadband connectivity. D-SAG will also provide support in identification and allocation of land to setup the project.

GUIDELINES FOR DEVELOPING PROPOSALS: Average cost of direct assistance to the poor Scheduled Tribe families should not exceed Rs. 30,000 per family over the duration of the project. Some of the other stipulations are as follows:

• The Project partner will have to ensure that every participating family working in rural area is able to achieve annual income level of Rs. 30,000 or more and is able to maintain the level of income for one generation once the project is completed. The expected level of income in urban area will be slightly more;
• The project may also cover non-tribal poor families after saturating the eligible population;
• Reputed NGOs which have tie-up with private sector are also encouraged to send their proposals;
• Project partners can be provided with management cost or service charge on par with the usual profit earned by them in their line of business; and
• D-SAG will seek performance guarantee to ensure that the outcome assurances are achieved at the end of the project.

SIZE OF THE INDIVIDUAL PROJECT: Individual projects will be for 3 to 5 years. Each project should cover between 1000 and 5000 BPL tribal families. Some small technology intensive projects with potential for scaling up will also be considered for piloting.

SELECTION PROCESS FOR PROJECT PARTNERS: Interested agency (private sector or NGO) can form a consortium to implement various project activities in an integrated manner. In case, there is more than one agency to handle various components of the project, the overall responsibility to coordinate with the activities will remain with the lead implementing partner who will enter in contract with D-SAG.

a. Screening on the Basis of Expression of Interest. Expression of Interest briefly detailing the project proposal (including likely investment and returns per participant), probable area of operation, details and expertise of individual partners (also highlighting the annual turnover and product range), expected cost of the project, and likely composition of the proposed implementing team can be sent to Shri M V Joshi, IAS, Chief Executive Officer, Development Support Agency of Gujarat, Block No. 8, 6th Floor, Sachivalaya, Gandhinagar latest by 20th July 2007.

At primary level, few parties with potential will be selected for the second stage of selection on the basis of the details sent in the EOI. The criteria for primary screening will be based on
a. Expected internal rate of return on the investment by Government and participating families;
b. Type of activity selected for the proposed area;
c. Technical expertise of the organization (s);
d. Experience of the consortium members; and
e. Turnover of the consortium members.

b. Discussion before Development of final project proposal: The short-listed groups will be requested to develop comprehensive proposals. During this stage, intensive dialogues will be held to firm up the activity, number of participating families, investment size, infrastructure requirements, qualifications & strength of implementing team, risk management, firming up project size, cost & internal rate of return, guarantees expected from the implementers and content of MOU. The data and information available with the Government agencies will be made available for this purpose and field visits to the proposed area can also be organized by D-SAG executives.

While developing final project proposals, the interested groups will also have to abide by theGender Framework , Monitoring Framework andfund release policy of D-SAG Link .

The main project will be developed/ fine tuned on the basis of the discussions. The Board of D-SAG will take a view on these projects before approving them.