Grant Agreement India
Below we give some standard elements of a national financial assistance agreement (in India) with tips to verify them in a practical way for an NGO: The grant agreement for the project was signed by Sameer Kumar Khare, Co-Secretary (MI), Department of Economic Affairs, Ministry of Finance, on behalf of the Government of India; Amitabh Agnihotri, Senior Chief Conservator of Forests, Government of Madhya Pradesh; R B P Sinha, Additional Chief Conservator of Forests, Government of Chhattisgarh; Neelu Gera, Deputy Director General, Indian Council for Forest Research and Education; and Hisham A. Abdo Kahin, Acting Country Director and Director of Operations, World Bank, India, on behalf of the World Bank. Pacta reviews and designs the documentation of grants to non-profit organizations. Contact us if you need help with your grant agreements. Foundations, intermediaries and other grant providers that provide grants to India will be subject to these regulations when the law comes into force. Purpose of the grant: Grant agreements clearly specify the purpose for which the grant funds will be allocated and how they can be used. It is recommended to provide details such as budget, program components, number of beneficiaries, etc. in general language to avoid subsequent disputes. Given that the law came into force on September 29, 2020, we recommend that grant providers who actively support Indian nonprofits take four steps quickly: Disbursement of funds: Grant funds are typically provided in tranches rather than in the form of a lump sum payment. Disbursements are subject to the condition that the beneficiary proves that he has exhausted the funds of the previous instalment. It is common for the grantor to reserve the right to modify future disbursements if it determines that it has not adequately achieved the milestones or results of previous tranches. Amount of grant funds: The agreement must specify the total amount of the grant awarded to the recipient, the exact payment dates and how it will be transferred to the recipient. Under the law, there are four main changes that are most likely to affect grant providers who support Indian scholars: A grant agreement does not need to be unilateral.
While it must ensure that the recipient complies with applicable laws, achieves expected results and reports carefully on the use of funds, it must not take advantage of the recipient`s position as the recipient of the funds. Intellectual Property: Since grant agreements are concluded for the implementation of projects that have an impact on society as a whole, any intellectual property created or developed by the beneficiary during the grant period may be shared between the parties or marked as open source intellectual property, public or motorway. It will be important to include clauses that prevent the commercial use of the generated intellectual property, recognize the other party in reports or publications and restrict the use of each other`s names, logos, etc. Use of grant funds: The recipient is required to submit regular reports to the grantor showing progress towards the achievement of the agreed outcomes. Fellows are often expected to share the annual financial report signed by an independent auditor, as well as a statement of the use of funds. Fellows must therefore ensure that they have the necessary resources to produce these reports and plan their activities so that grant reports can be prepared within the specified timeframes. Often, failure to comply with the reporting conditions for the use of funds can result in a penalty for the recipient. Audits: The Grantor reserves the right to conduct audits, inspections and site visits for the duration of the grant period. However, the fellow must insist that appropriate notice be given. Subsidy Period: The Parties must agree on a period reasonably necessary to achieve the objective for which the subsidy is awarded. This will also ensure that the beneficiary fulfils the objective/project for which the grant is awarded during this period.
NEW DELHI, 16 August 2017 – The Government of India, the governments of Chhattisgarh and Madhya Pradesh, the Indian Council for Forest Research and Education and the World Bank today signed a $24.64 million grant from the Global Environment Facility (GEF) to improve forest quality, sustainable land management and the benefits of non-timber forest products for forest-dependent communities in Madhya Pradesh and Chhattisgarh. Any grant to an Indian non-profit organization would not allow for re-agreement or subordination. This means that funders who currently use FCRA-registered non-profit organizations as grant waivers to support other Indian nonprofits registered by the FCRA can no longer do so. In addition, Indian non-profit organizations that act as responsible for the implementation of a particular project are no longer allowed to establish sub-grant relationships with other non-profit organizations that use foreign funds. What can a not-for-profit organization expect from a grant agreement and how can it be reviewed? A grant agreement defines the conditions under which one party agrees to provide funds to the other party, usually to achieve a social objective. Grant agreements are made between organizations (usually nonprofits/trusts/corporations) seeking funds/grants, and organizations such as for-profit CSR/HNI/philanthropies that provide the grant. Force majeure: This clause has become extremely important due to the pandemic. The lockdown has caused many parties to a contract to enforce the force majeure clause because the purpose of the contract could not be achieved due to government regulation beyond the control of the parties. For example, if a fellow requests that a field investigation be conducted and the government declares a ban, the fellow may invoke the force majeure clause. This clause releases the parties from the performance of their obligations under the contract without any liability for the duration of the force majeure event.
Dispute Resolution and Jurisdiction: Finally, a grant agreement would include a dispute resolution clause to resolve any disputes that may arise between the parties during the term of office. Where the parties are located in different geographical locations, they should decide which of the courts has jurisdiction to hear disputes arising from the grant agreement. In short, the law is likely to affect the way foundations and companies provide grants to Indian NGOs in several important ways. Termination: Termination must always be consensual, i.e. it can be initiated by both parties. However, the grantor may have the right to terminate the agreement with immediate effect if it has reason to believe that the grant funds will not be used in the manner or for the intended purpose or for breach of the terms of the grant agreement. .