Broad Guidelines for Private Sector Participation

Average cost of direct assistance to the families should not exceed Rs. 30,000/- per family
Project partner will have to ensure that the participating family will cross poverty line and maintain the level of income for one generation
The project may also cover non-tribal families after saturating the eligible population
Weigh tage will be given to NGOs which have tie-up with private sector for post harvesting and processing or for absorbing graduates from skill development programmes
Project partners will be provided with management cost or service charge the line of normal profit earned by them in their line of business and There will be an incentive-disincentive clause in the project. According to it, if partners achieve the proposed level of result in stipulated time frame, it will be rewarded with 2 to 5 percent of project cost. However, if partners fail to do so, they will draw a penalty of with 2 to 5 percent of project cost. The clause will be subject consideration of the risks involved.

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