EDUCATION
DEPARTMENT
GOVERNMENT OFPUNJAB
GOVERNMENT OF
NOTIFICATION
NO: SO(PI)1-17/88
In exercise of the powers conferred by section 14 of the Punjab Education
Foundation Act 1991 (No.I of 1991) the Government of Punjab is pleased to make
the following rules:-
PART -
I- GENERAL
1.
(1) These rules may be called “The Punjab
Education Foundation (Provision of Grant/Loans and Lease of Land) Rules, 1991”
(2) They shall come
into force at once.
(3) They shall
apply to the whole Province of the Punjab .
2.
In these rules, unless the context otherwise requires the following expressions
shall have the meaning hereby explained.
(1) “Act” means the
Punjab Education Foundation Act, 1991.
(2) “Foundation”
means the Punjab Education Foundation as established under the Punjab Education
Foundation Act, 1991.
(3) “Board” means the
Board of Directors of the Punjab Education Foundation.
(4) “Managing Director”
means the Managing Director of the Foundation.
(5) “Government” means
the Government of the Punjab .
(6) “Fund” means the
Foundation Fund.
(7) “District Education
Promotion Committee” or D.E.P.C. means a Committee constituted under the rules.
(8) “GrantW-in-aid”
means the advancement of non-refundable grant to the N.G.Os/private
persons/institutions** out of the Foundation Fund.
(9) “Loan” means refundable
sum of money advanced by the Foundation to any NGO/private person/institution**
under these rules.
(10) “Non-Governmental Organization”
(NGO) means a Non-Governmental Organization set up for objects relating to
Social Welfare including the running of an Educational Institution and
which is duly registered under the Voluntary Social Welfare Agencies
(Registration and Control) Ordinance, 1961, Trust Act 1882; Societies
Registration Act 1860, or the Companies Ordinance 1984.
(11) Deleted**
PART II
CONDITIONS FOR PROVISION OF GRANTW-IN-AID,
LOAN AND LEASE OF LAND
3.
The Foundation may provide assistance in the shape of grantW-in-aid,
loan and lease of land, under the rules for the purpose of encouraging welfare
and philanthropist N.G.Os/private persons/institutions** establishing
and running educational institutions on a non-profit/non-commercial basis in
the Punjab.
4.
The assistance shall be provided for establishment, extension, improvement and
development of educational institutions.
5.
Assistance shall be provided to N.G.Os/private persons/institutions**
for pursuing the objects mentioned in Section 11 of the Act.
6.
(1) In order to qualify for assistance educational
institutions being run by N.G.Os/private persons/institution** shall
have to be registered and shall abide by the provisions of the Punjab Private
Educational Institutions (Promotion & Regulation) Ordinance 1984.
(2) All the members of
the Managing Committee while applying for a loan and grantW
or lease of land shall sign all the attached prescribed forms A,B, and C.
Any change in the composition of the Committee shall be communicated to the
authority concerned within one month.
(3) The institution
shall be recognized/affiliated/registered with the relevant Directorate*****
of Education, Board of Intermediate & Secondary Education or the
University.
(4) The
N.G.O./private person/institution** shall provide bank guarantee or
shall mortgage adequate immovable property in favour of the Foundation.
The loan shall not be disbursed unless such security is provided.
* However
movable property may be mortgaged for securing loan to purchase
Furniture/Fixture/equipment etc. for primary schools and other institutions of
equal status.
(5) The applicant shall have
to submit a project proposal on the prescribed application form alongwith a
rough cost estimate of the construction component duly authenticated by a
technical expert or agency approved by the Foundation.
(6) The NGO/proposed educational
institutions shall maintain accounts of income from all sources and while
applying for grantW/loan shall submit proof of the incomes
and expenditures duly audited by an agency approved by the Foundation.
(7) The accounts
maintained by the institutions are duly audited annually.
(8) The institution has, or in
case of a new institution, the N.G.O./private person/institution**
proposes to have the following minimum enrollment:-
ENROLLMENT
FOR MALE
INSTITUTIONS
INSTITUTIONS
a)
Degree College
b)
Intermediate College
c)
Higher Secondary
School
150
d)
High
School
100
e)
Middle
School
80
f)
Primary
School
40
g)
Technical/Vocational
Institution
50
h)
Institution for Special
Education
20
In case of
institutions meant for females, half of the enrollment fixed for male
institutions shall be acceptable to the Foundation for purposes of assistance.
(9) The premises of the
institution are hygienic, well ventilated and are supplied with suitable
laboratories, workshops (if required for the instructional programme) and have
suitable accommodation for students, office etc.
(10) The institution has
sufficient/adequate and suitable furniture and equipment.
(11) The staff engaged in the institution
is adequate, properly qualified as per standards laid down by the Education
Department and of good character and firmly believes in the ideology of Pakistan
(12) The administration, discipline and
academic tone are satisfactory, the instruction imparted is upto the standard
as judged from the methods of teaching and results and the instruction imparted
is also in accordance with the prescribed curricula.
(13) The institution provides reasonable
facilities for co-curricular and recreational activities to the students.
(14) Only authorized textbooks are used
and the books and periodicals purchased for use in the institution are as
approved by the competent authority and are not repugnant to the ideology of Pakistan
(15) The fees and funds levied and
concessions allowed are reasonable.
(16) The institution keeps the following
record and registers:-
a)
Admission and withdrawal Register.
b)
Attendance Register for students and teachers.
c)
Cash Book.
d)
Acquaintance Role.
e)
Log Book
f)
Stock Register.
g)
Examination Register.
h)
Statistical Register.
i)
Correspondence Register.
j)
Personal files of staff.
***** For the words Directorate of
Education the words “Executive District Officer(Education) shall be substituted
in Rule 6(3) as per amendment dated 30.11.2001”
7.
GrantW-in-aid/loan will be allowed to
N.G.Os/private persons/institutions** to meet partially the expenses
incurred on:-
(a) construction / extension
of building;
(b) purchase of equipment, machinery,
furniture, books, laboratory material and other educational materials;
(c) maintenance and recurring****
expenditure; and
(d)
any other project assigned or taken up by an N.G.O./private
person/institution** for the fulfillment of any of the functions of
the Foundation as enumerated in sub-clause (e) to (g) of Section 11 of the
Punjab Education Foundation Act, 1991.
8.
GrantW-in-aid/loan may also be advanced in kind
for all or any of the items mentioned in rule 7 above.
9.
(a) The
Government shall, in each district, constitute a District Education Promotion
Committee.
(b) The Foundation shall sanction grantsW-in-aid
for N.G.O./private person/institution** on the recommendation of the
District Education Promotion Committee constituted by the Government.
10.
The grantW-in-aid /loan shall be granted on a
sharing basis as follows:-
Maximum Share Minimum Share
PURPOSE of Foundation of NGO
GRANTW LOAN
PURPOSE of Foundation of NGO
GRANTW LOAN
(a) Construction of
building
33%
33%
33%
(b) Purchase of
equipment/
33%
33%
33%
furniture
furniture
(c) Recurring****
expenditure
33%
---
33%
*
The balance amount of recurring**** expenditure shall be met from
the fee income by the N.G.O./private person/institution**. The
period and extent for grant-in-aid for recurring**** expenditure
shall be determined by the Board.
****
Amended/added vide Notification dated 8.10.1999
(i)
Institution from primary to high school shall only be eligible for financial
assistance in future.
(ii)
Grant-in-aid for recurring**** expenditure shall not be extended in
future.
(iii) The sharing
formula for financial assistance within the jurisdiction of the Development
Authorities, Municipal Corporations and Municipal Committees will be as under:-
LOAN
50%
Grant
20%
Share
of
NGO
30%
******
Further amendment in Rule 10 has been approved by B.O.D. in its meeting held on
10.08.2002 which is as under:-
The Loan shall be granted on a sharing basis as follows:-
Maximum Share
PURPOSE of Foundation Minimum Share
LOAN of NGO
PURPOSE of Foundation Minimum Share
LOAN of NGO
Rural
Areas
For
construction of Building,
65%
35%
Purchase
of furniture & equipment
Urban
Areas
For
construction of Building,
60%
40%
Purchase
of furniture & equipment
Primary to Higher Secondary
Schools Inter Colleges
11.
The award of grantW and/or loan for various purposes shall
have to be approved by the Board.
12.
The grantW-in-aid/loan for the construction of
building shall be released in three equal instalments as under:-
1st
instalment:
On completion of plinth level
2nd
instalment
On completion of building upto roof level
3rd
instalment
On completion of the roof
GrantW-in-aid/loan for other purposes shall be
released in a single instalment.
******
Amendment in Rule 12 approved by B.O.D. in its meeting held on 10.08.2002 is as
under:-
The loan for the construction of building shall be released in three equal
instalments as under:-
1st
instalment:
On completion of plinth level
2nd instalment
On completion of building upto roof level
3rd
instalment
On completion of the roof
Loan
for other purposes shall be released in a single instalment.
13.
The grantW-in-aid/loan shall be utilized only for
the purpose for which it is sanctioned and in case any party, person or persons
are found utilizing the amount of grantW/loan
for purposes other than the purposes for which it was sanctioned, the unspent
amount of grantW/loan shall be withdrawn, further
advances stopped and the amount of the grantW/loan,
shall be recovered as arrears of land revenue. In case the
Foundation comes to know about the misuse of funds by any Non-Governmental
organization/private person/institution,** the Managing Director
shall issue a show cause notice to such Non-Governmental Organization/private
person/institution** concerned and shall get such
complaint inquired into by the District Education Promotion Committee.
The District Education Promotion Committee shall submit its report to the
Managing Director within fifteen days. The Managing Director after
affording an opportunity of defence to representative of Non-Governmental
Organizations/Private Persons/Institutions** shall submit its
opinion to the Board. The Board may black-list the Non-Governmental
Organization/private person/institution** from receiving any further
financial grantW from the Foundation and may also impose
the fine mentioned above.
The
following addition in Rule 13 has been made vide notification dated 8.10.1999
****
In case an NGO fails to pay two successive instalments of loan, its grantW
shall be converted into loan”
14.
The grant for recurring**** expenditure shall be approved in
accordance with the standards laid down by the Punjab Education Foundation
itself.
PART-III
PROCEDURE FOR APPLICATION FOR AWARD OF GRANTW/LOAN
15.
An application for the sanction of grantW/loan
shall be made to the Managing Director through D.E.P.C. in the prescribed form.
16.
No application shall be entertained unless following documents are attached
therewith:-
(a) A Registration Certificate of
Non-Governmental Organization as per Rule-2(10) and a registration certificate
of its educational institution from Education Department. In case of a
new educational institution, an undertaking shall be furnished to the effect
that the school shall be got registered with Education Department within six
months of its functioning.
(b) Certificate from a scheduled bank,
national savings or any other financial institution recognized by the
government, showing financial position of the N.G.O./Private
person/Institution.**
(c) A plan and rough cost
estimates of the building of institution authenticated by a technical
expert/agency or any other institution or authority acceptable to the
Foundation.
(d) Proof of ownership or lease of land (if
available) in the name of N.G.O./Private person/Institution.**
(e) Following
information about the existing /proposed institutions:-
(i) Class-wise enrollment of
the institution.
(ii) The rates of fee charged
(iii) Staff statement with their
qualification and emoluments.
(iv) List of management committee or
manager(s) or list of Trustees.
(v) Details about the existing facilities of the
institution like building, furniture, equipment, library etc.
(vi)
A statement of accounts of the institution for the last three financial years
duly audited, which the Foundation may require.
(vii)
Any other document/information required by the Foundation or which the
NGO/institution might like to produce.
17.
(a) On receipt of application, the District Education
Promotion Committee or its representatives, shall inspect the educational
institution or the location of the proposed educational institution in order to
examine the viability of the proposal, credibility of the applicants and their
capability for implementing the scheme. After that, the committee shall
submit its proposal alongwith its recommendation for its acceptance or
otherwise to the Managing Director. The District Education Promotion
Committee shall be bound to submit is recommendation to the Managing Director
within a period of two months. Otherwise, the Chairman District Education
Promotion Committee shall submit the case alongwith its recommendations to
Punjab Education Foundation.
(b) The Board,
being the competent authority to sanction grantW/loan,
shall consider the recommendations of the District Education Promotion
Committee and shall pass orders to sanction or to reject the proposal for the
grantW/loan.
(c) Formal orders
for the sanction of grantWshall be issued by the Managing Director
and he shall issue a cross-cheque in the name of the Non-Governmental
Organization and the educational institution which has applied for the grantW.
The cheque for each payment shall be delivered to Non-Governmental
Organization/Private person/Institution** by the District Education
Promotion Committee or a person authorized by it after the satisfaction of the
District Education Promotion Committee as to the conditions laid down in Rule
12.
18.
In case of grantW/loan for construction of building, the
disbursement of subsequent instalments shall be made when the certificate is
issued by the DEPC to the effect that the borrower has:-
(a) not deviated from the
purpose for which the loan was sanctioned and completed the building to the
level as envisaged in Rule 12 for release of subsequent instalment;
(b carried out the
project according to the plan; and
(c) not transferred the assets
to any person, damaged or without permission sold or made alteration in the
property, land or assets belonging to the institution.
******
Amendment in Rule 18 stands approved by BOD in its meeting held on 10.08.2002
which is as under:-
In
case of loan for construction of building, the disbursement of 1st
instalment shall be made when the certificate is issued by the DEPC to the
effect that the borrower has:-
(a) not deviated from
the purpose for which the loan was sanctioned and completed the building to the
level as envisaged in Rule 12 for release of subsequent instalment;
(b) carried out the
project according to the plan; and
(c) not transferred
the assets to any person, damaged or without permission sold or made alteration
in the property, land or assets belonging to the institution.
However,
the disbursement of 2nd and 3rd installments shall be
made when construction completion certificate is issued by an officer of PEF in
BS-18 or above to the effect that the borrower has complied with the conditions
laid down at ‘a’ and ‘b’ above.
19.
The District Education Promotion Committee for the purpose of rule 13 above
shall have the power to inspect, supervise and monitor the project to ascertain
proper utilization of the funds and may submit a report thereof to the Managing
Director, recommending release or with-holding of funds.
PART-IV
SANCTION AND REPAYMENT OF LOANS
20.
All loans advanced shall be free of interest.
“As
per decision of Board of Directors dated 3rd & 8th
March 2001, Service Charges @3% on loan amount has been levied on self
diminishing basis.”
21.
While sanctioning loan the Foundation may prescribe or attach such conditions
in writing as it may deem necessary or expedient to protect and safeguard its
interests or the interests of the students and the education system and for
recovery of the loan.
22.
The borrower shall repay the amount loaned within seven years commencing from
the date of disbursement of last instalment of the loan on the basis of
half-yearly equal instalments or as agreed between the borrower and the
Foundation.
******
Amendment in Rule 22 approved by BOD in its meeting held on 3rd
& 8th March, 2001 is as under:-
The
borrower shall start repaying the loan after one and a half year from the date
of disbursement of the Ist installment and the total amount shall be paid
within seven years bi-annually in fourteen equal installments. It shall be the
responsibility of the borrower to obtain all installments of loan within a
maximum period of one year and six months.
23.
The borrower shall execute an agreement with the Foundation in the form of
mortgage of his immovable property. The District Education Promotion
Committee, through its Chairman, shall be authorized to complete the execution
of the agreement deed on behalf of the Foundation.
24.
The borrower after the sanction of the loan shall not make amendment or
alteration in the plan or estimates of their proposals without the approval of
the Foundation.
25.
The borrower shall not without the approval of the Foundation transfer or sell
the land, property or assets of the N.G.O./private person/institution**
against which the loan has been advance/sanctioned.
26.
Assistance shall be granted /sanctioned in the shape of cash, equipment, land,
apparatus, machinery, building or for hire-purchase etc.
27.
In case the borrower does not repay loan according to the terms and conditions
of the agreement, Foundation may direct the borrower to surrender its assets
equivalent to the financial assistance provided by the Foundation. In
case of failure of the borrower to comply with such instructions, the
Foundation shall have the power to confiscate its assets and impose additional
penalty equivalent to one half of the financial assistance provided by the
Foundation.
*** The amount due would
be recoverable as arrears of Land Revenue by the Collector***** of
the district where the Project is located on a certificate to this effect by
the Punjab Education Foundation.
***** For the words “Collector of the District”
the words “Executive District Officer (Revenue)” shall be substituted as per
amendment dated 30.11.2001.
******Further Amendment in Rule 27
approved by BOD in its meeting held on 3rd & 8th
March 2001 is as under:-
In case the
borrower does not repay loan according to the terms and conditions of the
agreement, Foundation may direct the borrower to surrender its assets
equivalent to the financial assistance provided by the Foundation. In
case of failure of the borrower to comply with such instructions, the
Foundation shall have the power to confiscate its assets and impose additional
penalty equivalent to one half of the financial assistance provided by the
Foundation.
The
amount due would be recoverable as arrears of Land Revenue by the Executive
District Officer (Revenue) of the district where the Project is located on a
certificate to this effect by the Punjab Education Foundation.
Any
borrower who fails to repay two consecutive installments of loan, when it
becomes due, the collateral/mortgaged property may be forfeited by Punjab
Education Foundation after observing the legal procedure to the extent of loan
payable at the time of default.
PART-V
CONDITIONS GOVERNING GRANTW OF LEASE OF LAND AND CONSTRUCTION OF
BUILDING
28.
An application for award of lease of land shall be made to the DEPC in
accordance with the procedure laid down in Part-VII in the prescribed
form. Conditions laid down in Part-II of the rules shall be applicable to
all applications for lease of land.
29.
(a) Plot/land to be leased shall
ordinarily be of the following size:
Institution
Urban
Rural
Primary
School
2 Kanal
8 Kanal
Middle
School
4 Kanal
16 Kanal
High
School
8 Kanal
32 Kanal
Higher
Secondary School 16
Kanal
48 Kanal
Inter
College
16 Kanal
48 Kanal
Degree
College
40
Kanal
64 Kanal
Polytechnic
Institute/College According to the requirements
Commercial/Vocational
40
Kanal
60 Kanal
Training
Institute
(b) In case of
educational institutions duly recommended by the Punjab Education Foundation
the rate of annual lease of land will be as follows. However these rates
may be reviewed.
1.
Metropolitan/Municipal Corporation:
Rs.250/- per Kanal
(URBAN)
(URBAN)
2.
Municipal committees/Town
Committees
Rs.100/- per Kanal
(URBAN)
(URBAN)
3. Rural
Area/Union
Council
Rs. 50/- per Kanal
(c) During the
terms of the lease, the tenant shall within three months of the new
calendar year pay the rent for one or more years on per annum rate in such
manner and at such place as the District Collector may specify.
*****
For the words “District Collector” the words “Executive District
Officer(Revenue)” shall be substituted.
30.
The lease shall initially be for a period of 30 years renewable on one year
notice for a period of 20 years at a time. The total period of lease,
however, shall not exceed 99 years.
31.
The land so leased shall not be used for any purpose other than for setting up
of an educational institution.
32.
The lessee shall not interfere with the lawful use by the public of any
thoroughfare on the land or with the exercise of any rights and easements now
existing thereon or for which the lessee is bound by the term of the lease.
33.
The lessee shall execute a lease deed with the District Collector concerned as
per conditions laid down in the Notification to be issued by Colonies Department
Board of Revenue, Punjab.
*****
For the words “District Collector” the words “Executive District Officer
(Revenue)” shall be substituted
PART-VI
CONSTRUCTION OF BUILDING
34.
The construction of building for the Education Institution shall be completed
on the leased land within a period of one year on the receipt of the approved
Building Plan as mentioned above, or delivery of the possession of land
whichever is later.
35.
(a) The building of the educational institution on the land leased
out to the NGO/private person/institution** shall be constructed
only after the approval of plan by Foundation/District Education Promotion
Committee.
(b) The Foundation/District Education Promotion Committee shall pass
orders regarding sanction of the plan within three month from the date of the
issuance of formal lease order by the competent Revenue authority, or from the
date of taking over the valid possession of the land, which ever of the two is
later.
36.
The building so constructed shall be inspected by the District Education
Promotion Committee or its representative to ensure that construction is
according to the approved plan and inspection report shall be submitted to the
Punjab Education Foundation.
PART-VII
PROCEDURE FOR APPLICATIONS FOR LAND/PLOT
37.
An application for the lease of such land/plot shall be made to the Managing
Director through District Education Promotion Committee on the prescribed form.
38.
On receipt of application, the DEPC or its representative shall inspect the
location of the proposed educational institution and shall examine the
viability, genuineness and credibility of the proposal as well as the
applicant’s antecedents and capability to work. Thereafter, the committee
shall forward its report either recommending the proposal or otherwise, to the
Managing Director.
39.
The Board shall then consider the recommendations of the Managing
Director. In case the decision to grant lease of land is taken by the
Board, the land shall be leased out and the entire proceeding completed within
one month of the final decision by the Board in accordance with the
notification issued by the colonies department, Board of Revenue Punjab on the
subject.
40.
In case the plots are provided to the Foundation by the Housing/Development
Authorities, the Foundation shall lease them out to eligible N.G.Os / Private
Persons/Institutions** for educational purposes and the lease money
shall be paid by the lessee in accordance with the directions of the
Foundation.
41.
If the Collector is satisfied on the recommendation of the Managing Director
that the lessee has committed a breach or on non-observance of the conditions,
he may, after giving the lessee an opportunity to appear and state his
objections, impose on the tenant a penalty (not exceeding 50 times the annual
rental value) or order resumption of land, or both.
*****
For the word “Collector” the words “Executive District Officer (Revenue)” shall
be substituted
PART-VIII
|
ASSISTANCE FOR COMMERCIAL
ORGANIZATIONS/INSTITUTIONS/INDIVIDUALS
|
42.
Following rules will apply to the assistance of Foundation extended to the
commercial organizations/private person/institutions** for promoting
education.
(i) Such
private institutions and individuals will not be eligible for grants.
Only the facility of loan will be available to them. Loan will be
extended to the educational institutions of Higher Secondary School level
preferably to vocational, computer, technical, commerce and handicraft
institutions.
(ii)
Both new and existing educational institutions will be eligible for the grant
of loan. However preference will be given to those educational
institutions who are being run in rented buildings and apply for loan to construct
buildings on the land acquired for their institutions.
(iii) The
principle of “first come first served” will be observed.
However loan will be advanced after due scrutiny of applications in accordance
with the rules of the Foundation. Loan will be extended in favour of only
those institutions/individuals who want to get the loan money for educational
purposes and are financially capable of completing the project and paying back
the loan and may guarantee the payment of loan. Loanee will preferably
pledge his personal property for the payment of loan. However if he does
not own any property, he may pledge the project land and the building to be
constructed upon it.
(iv) One third of the
annual development budget of the Foundation will be reserved for profit earning
educational institutions and the remaining two third for non-commercial
educational institutions. However if one third share is not fully
utilized, the balance will be used to assist non-commercial institutions.
(v)
Institution/Individual/Organization will contribute a minimum share of 30% of
total cost of the project and the 70% will be shared by the Foundation in the
form of loan. However the amount of loan will not exceed the limit of Rs.
35 lac. The applicant will spend his share on the project before the
release of loan.
(vi) In
order to encourage the setting up of educational institution in rural areas,
the mark up rate on these loan will be charged at the rate of 5% in rural areas
and 10% in urban areas.
(vii)
Repayment of loan will begin after a period of one year from the date of
issuance of last cheque and the entire amount including mark up will be repaid
in 18 half yearly instalments.
(viii)
Loan sanctioned for the construction of building will be released in 3
instalments, whereas loan sanctioned for the purchase of equipment, furniture,
books etc will be paid at one time.
(ix) In addition to the above
conditions the loan will be advanced to the commercial institution on the same
terms and conditions as are applicable to the institutions working
non-commercially.
PART-IX
RELAXATION IN RULES
42.
Under special circumstances or owing to valid reasons to be reduced in writing,
the Board may relax its rules in favour of any institution in the light of
factual position.
*
Amendment through Notification No. SO(PI)1-17/88 dated 26-1-1993.
**
Amendment through Notification No. SO(PI)1-17/88 dated 23-9-1996.
***
Amendment through Notification No. SO(PI)1-17/88 dated 12-3-1997.
****
Amendment through Notification No. SO(Lit)3-5/99 dated 08-10.1999.
*****
Amendment through Notification No. SO(Lit)4-17/2000 dated 30-11.2001.
******
Amendments in Rules approved by Board of Directors. However, are yet to
be notified by the Government.
be notified by the Government.
W Component
of grant has been stopped vide Board of Directors decision
dated 19.9.2001
dated 19.9.2001
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