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Indian Treaty Series

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New Delhi, 8 July 1971

The Government of INDIA


The Government of DENMARK

Being desirous of strengthening the friendly relations between the two countries and their populations,

AND recognizing their mutual interest in promoting there economic and technical development, particularly by providing means for education and training,

HAVE agreed as follow:

Article I

The objective of the technical and economic co-operation under this Agreement is to contribute to the development of small scale industries in India by establishing a Technical Training Center for tool makers and a Service Center at the Rajajinager Industrial Estate, Bangalore, Mysore State.

Article II

The activities of the Training center and the Service Center will be organized as follow :

The training Center will comprise two lines of training, one for press tools, jigs and fixtures, and one for moulds for plastics and metal. The training under each line is expected to be of a duration of four years. The Training Center will receive and average of ten apprentices per year.

The Service Center will employ an average of twenty to twenty-four tool makers. The production of the Center will contribute on a commercial basis to the supply of tools for local industries, particularly small scale industries.

The Training Center and the Service Center will be place under the administration of the Mysore small industries corporation and supervised by the Indian Government authorities concerned.

Article III

The commitments of the Government of Denmark under this Agreement comprise:

(a) provision for the Training Center and the Service Center of equipment up to value of 7.15 million Danish Kroner. The imported equipment will be delivered c.i.f. nearest Indian port;
(b) recruitment, payment of international travel expenses, salaries and insurance for five experts as follow :

(i) One chief adviser,
(ii) One works manager,
(iii) One training manager,
(iv) Two supervisions/designers.

The appointment of the experts shall be subject to the approval of the Indian authorities concerned. At the end of the third year of operation of the Training Center, one of the supervisors will be withdrawn. At the end of the fourth year, the remaining supervisor, the training manager and the works manager, will be withdrawn. The chief adviser will be withdrawn at the end of the fifth year;

(c) Fellowships of duration of one to three months, including travel expenses, for ten Indian citizens employed at the Training Center and the Service Center. The Mysore Small Industries Corporation will assure that the Indian beneficiaries of the above fellowships, after their return from training in Denmark, will serve at the Training Center and the Service Center for a suitable period.

Article IV
Delivery of the items mentioned under Article III and the sending out of the experts mentioned under the same article will take place in accordance with stipulations to be laid down in a Plan of Operations agreed upon by the two parties.

Article V

The commitments of the government of India under this Agreement compromise :

(a) procurement of suitable site and building with all installations for the Training Center and the Service Center, including air-conditioning in certain rooms, and all working expenses;
(b) installation of machinery and equipment; and installation and mounting of machines and equipment will be carried out in cooperation with the Danish works manager;
(c) recruitment and payment of salaries for Indian staff members and personnel as follow :

(i) one director,
(ii) one works manager,
(iii) one training manager,
(iv) three supervisors,
(v) six designers,
(vi) four instructors,
(vii) ten service employees,
(viii) tool makers.

The director, the works manager, the training manager and two of the supervisors shall be appointed and available at the project by the time of arrival of goods and experts listed under article III; the other members of staff and personnel will be recruited in accordance with the gradual completion of the project;

(d) payments of all other expenses required for the establishment and operation of the project which are not listed above and not mentioned under the commitments of the Government Denmark.

Article VI

Procedures will be set up by the Government of India whereby import duties and other and other fiscal charges, of any, on all the equipment including spare parts and materials for the Training Center and the Service Center to be supplied by the Government of Denmark in pursuance of Article III is not payable by the Government of Denmark.

Article VII

The Government of India will provide suitable residences for the experts to be sent out in pursuance of Article III and accord them such privileges as are normally accorded to comparable experts at technical co-operation projects under the rules and regulations of the general Agreement between the Government of Denmark and the Government of India concerning Technical Co-operation of February 16, 1970.

Article VIII

The items provided by the Government of Denmark will be become the property of the Government of India upon the completion of the project.

Article IX

The Government of India will ensure that the equipment donated by the Government of Denmark, after the completion of the project, will continue to be used for the purpose for which it was intended.

Article X

During the period of validity of the Agreement, representatives of the authorities concerned of the two Parties shall have free access to the Training Center and the Service Center. At the end of each year of the co-operation under the Agreement, copy of the accounts and a copy of a report on the past year's activities shall be forwarded to the authorities concerned of the two Parties by the Mysore small industries corporation.

Article XI

The present Agreement shall enter into force on the date of its signature and shall remain in force for a period of five years. The Agreement may be terminated at any time by either party giving six months’ notice in writing to the other party.

The present Agreement may be amended by an exchange of letters between the two Governments.

In WITNESS WHEREOF, the undersigned, duly authorized by their respective Governments, have signed this Agreement.

DONE in duplicate in English in New Delhi on this 8th day of July, 1971.

For the Government of India For the Government of Denmark

SD /- SD /-
Additional Secretary Ambassador in India
Ministry of Finance

India Bilateral

Ministry of External Affairs, India

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