(1) The State Government shall identify at least one industry partner, and preferably three industry partners, for collaboration and submit a proposal to the Central Government.
(2) The Central Government shall examine the proposal on the basis of such criteria, as may be prescribed, which shall include the following, namely:—
(a) the investment of capital required for establishing the proposed Institute to be borne by the Central Government, the concerned State Government and industry partners in the ratio 50:35:15 and recurring expenditure, as may be considered necessary during the first five years of operation, to be made available by the Central Government:
Provided that the ratio of investment of capital required for establishing the proposed Institute in North Eastern States shall be 57.5:35:7.5;
(b) the expertise and standing of the industry partners proposed in sub-section (1) in the field of information technology;
(c) the assessment of the capability, financial and other resources of industry partners to support the Institute;
(d) the suitability of adequate land, to the extent of fifty to hundred acres, to be provided by the State Government free of cost;
(e) the availability of, or the commitment of the State Government to make available, adequate physical infrastructure namely, water, electricity, road connectivity and security, at the proposed site.
(3) The Central Government may, with the concurrence of the concerned State Government, suggest modifications, if any, to the proposal submitted to it under sub-section (1).
(4) Where a proposal submitted by the State Government under sub-section (1) is not acceptable to the Central Government, the Central Government shall communicate its decision to that State Government, specifying the reasons for such decision.
(5) The Central Government shall, on acceptance of the proposal with modifications, if any, under sub-section (3) , enter into a memorandum of understanding or an agreement with the concerned State Government and the industry partners for the establishment of the proposed Institute.
(6) The industry partner shall—
(a) actively participate in the governance of the Institute within the overall framework;
(b) support and facilitate joint research projects with the Indian Institutes of Information Technology either through funding, collaboration or in any other manner;
(c) depute experienced individuals as adjunct faculty;
(d) encourage, enable, support and mentor students to do research project as a part of their course curriculum, within their enterprise;
(e) accept faculty members of the Indian Institutes of Information Technology on a sabbatical to work for short period with the industry;
(f) co-create programs as per the requirements of the industry with the Institution;
(g) provide internship to students of the Indian Institutes of Information Technology;
(h) facilitate for placement of students from the Indian Institutes of Information Technology;
(i) sponsor their eligible employees for doctorate studies in the Indian Institutes of Information Technology; and
(j) fund and mentor the startups in the Institution.
(7) Every memorandum of understanding or agreement referred to in sub-section (5) shall contain—
(a) the investment proposal of capital in establishment of the Institute and the respective shares as may be prescribed;
(b) the first Statutes of the Institute;
(c) the commitment of the Central Government, the concerned State Government, and the industry partner in ensuring autonomy to the proposed Institute; and
(d) the conditions, if the industry partners pulls out.