Skilling Policy

8/6/2019 Skilling Policy

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LBSS Private and Confidential

The Skilling Opportunity in India

For Indias growth story to be sustained the demand for

labor needs to be met with skilled manpower

The target is 500 million skilled people by 2022

Current vocational training capacity stands at just 3

million a year against a need for 12 million a capacity

gap of around 9 million people.


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Existing Govt. framework

Education

HRD Ministry

Universityand highereducation

TechnicalEducation

SkillDevelopment

Ministry of

Labour andEmployment

DirectorateGeneral of

Employmentand Trade

Govt. ITIPrivate ITC

NSDC

NCVTUGC AICTE


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Programs by various ministries

17 Ministries of the Government of India are engaged in skilldevelopment

Ministry Schemes Target Group Duration of

courses

HRD Vocationalisation of

secondary schools

Polytechnics

Apprenticeship training

10th or 12th pass 2 years

3 years Diploma

One year

IT DOEACC- 0 level

CEDTI

10+2 pass Certification


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Programs by various ministriesMinistry Schemes Target Group Duration of

courses

Labor and

Employment

Craftsmen training scheme

at ITI

Apprenticeship training

scheme

MESCraftsmen Instructor

training schemes

8th, , 10th and 12th

pass

8th , 10th or 12th or

National Trade

certificate holderSchool drop outs

Six months and three

years

Six months to 4 years

Short term

MSME Entrepreneurship

development program

Skill development program

72 institutes and bodiesunder itSSSI, RTC

Workers

Educated

unemployed youth

Entrepreneurs'

Both short term and

long term

Urban

development

Company run schools by

L&T, NBCC, HCC, ECC

Persons engaged in

construction industry

Short term courses


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National Council forSkill Development

Chaired by Prime-minister

Policy formulation atNational level

National SkillDevelopment

Coordination Board

Under the PlanningCommission

Intensify action ofGovt. Agencies

National SkillDevelopmentCorporation

Under the FinanceMinistry

To promote skilldevelopment in privatesector

Financing viableprojects

Support systems, QA,train the trainer

The National Skill Development

Initiative

POLICY IMPLEMNTATION-

GOVT. AGENCIES

IMPLEMNTATION-

PRIVATE PLAYERS


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Accreditation bodies

AICTE - Regulatory body for Technical Education -Engineering colleges, polytechnics etc.

NCVT - Formation of training curriculum, policies,standards, as well as in certification by means of the trade

test. NCVT will be strengthened and reengineered with a broader

mandate under National Skills policy

National Institute of Open SchoolingAccreditation of

institutes as study centers (AVI) Quality Council of India - Accreditation Standard for quality

of Governance of Vocational Training Institutions.


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Coverage of the National Skill

development policy

Institution-based skill development - ITIs/ITCs/vocationalschools/technical schools/ polytechnics/ Lok Bharti

Learning initiatives of sectoral skill development organized bydifferent ministries.

Formal and informal apprenticeships by enterprises Training for self-employment/entrepreneurial development

Adult learning, retraining of retired or retiring employees andlifelong learning

Non-formal training including training by civil societyorganizations

E-learning, web-based learning and distance learning.


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Industries identified by Govt.

Industry Skills in demand

IT and ITES Maintenance and Application Development, End-

to-End Solutions, Infrastructure Management,

Testing, ITESBPO, KPO

Electronics and IT Hardware Computers, Telecom, and Consumer Electronics

Manufacturing, Sales, Servicing/ After SalesSupport of electronics goods, High-Tech

Building and Construction Crane Operators, Electricians, Welders, Masons,

Plumbers, Carpenters, Painters

Auto and Auto Components OEMs, Component Manufacturers, Drivers,

Sales, Servicing, Repair, Financial Services sales,Insurers

Organized retail Shop floor executives, back-store operations,

merchandising


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Industries identified by Govt.

Industry Skills in demand

Textiles and Clothing Power loom operators, Apparel Manufacturing,

Fashion Design, QA, Knitwear Manufacturing,

Sewing Machine Operators

Banking, Financial Services, and Insurance Financial Intermediaries (including Direct Selling

Agents), insurance agents ,Mutual Funds

Gems and Jewellery Jewellery Fabrication, Grading, Faceting,

Polishing, Cutting .

Leather and Leather Goods Tanning, Cutting, Clicking, Stitching, Lasting,

Finishing

Furniture and Furnishings Carpenters, Stitching, Sewing, Stuffing

Tourism and retail Front office staff, Kitchen and Housekeeping staff,

Ticketing and Sales


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Modular employable scheme (MES)

Ministry of Labor and EmploymentTotal of 1122 coursesacross sectors.

Demand driven short term training courses ratherthan existing model of supply driven training

Employable skills to school leavers, existing workers, ITI/ITCgraduates, in close consultation with industry and academia.

Certification of prior experiential learning

Multiple entry and exits as well as transforming skilldevelopment from long term (1 to 2 years) to short term

(about 3 months). Challenges in implementation of the scheme through PPP

Fees of Rs. 500 to Rs 2000 per module for a duration of 90 to270 hours


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Curriculum development by MES

Identification of employable skill sets in consultation with theIndustry

Developing of training modules corresponding to skill set

Organizing modules in a course matrix indicating horizontal

and vertical mobility

Vetting by a trade committee representative of Industry

training providers

Approval by NCVT

Instruction media packages developed by NIMI


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The informal sector

90% of employment in India is in the informal sector withemployees working in relatively low productivity jobs

Provision of important skills a challenge

Demand side challenges: Few employers in the informal sector

see advantage of formal training

Supply side: ITIs, ITC do not cater to informal sectors

Self employment opportunities are really lowwith only 5% of

people getting into it. Skills for entrepreneurship not taught at

ITI


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SDI - upgrading the ITIs

Announced in the budget speech of 2007Initiative toupgrade ITIs

Public-Private Partnership between government and industry

that will take up the skills development program under the

name Skills Development Initiative (SDI).

This initiative includes up-gradation of 1,396 ITIs into

centers of excellence in specific trades and skills under PPP.


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Key features of the SDI

State Government will continue to regulate admissions andfees

New management will be given academic and financial

autonomy

Central Government will provide financial assistance by way

of seed money.

ITIs will be encouraged to start a second shift.

State Govt. to grant an interest free loan up to Rs.2.5 croreto each ITI for up-gradation.


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Industry tie ups with ITIs

Apollo Tyres, Asian Paints, Wockhardt, Videocon, Indian Cements,JSW Steel, Indo Rama and Finolex Cables are among the various

companies that have signed agreements with ITIs

General Motors India and government of Gujarat MOU for a PPP

to train students of the Tarsali ITI in Vadodara. GM India woulddevelop and provide technical courses on automotive technology

through Tarsali ITI.

Mahindra & Mahindra Ltd. (M&M), MOU with Maharashtra ITIs

Eicher the first commercial vehicles manufacturer in India to setup training centers based on industry-institution collaboration


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Case Study- LG Electronics with

Mumbai ITIs

5 ITIs (Mumbai, Mulund, Thane, Ambernath, Pune, Pimpprichichwad) The model is being developed by L.G Electronics to meet their needs

for skilled manpower of trade RAC / RTV/ Electronics/ ITESM etc fortheir Authorised Service Centres (ASC).

L.G will provide input to upgrade/ Modify/ Add-on to the curriculum

LG will select the trainees for appointment in Authorized service centreafter completion of 1 year of training (duration of training is 2 years)

Agreement between Authorized Service Centre & candidates forappointment

L.G will give scholarship Rs. 1000/- to selected trainees. L.G shall provide training to ITIs instructors (Trainers) in the premises

of L.G at their own cost


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Case Study- Bharat Forge Ltd.

BFL identified the requirement of Manpower for their Industry.Accordingly 6 Trades are selected.

BFL creating the additional infrastructure facilities like building,equipment & power supply etc. in existing ITI.

BFL will select the Instructional Staff for the proposed trade and

train them in their industry. All non-recurring and recurring expenses are to be borne by BFL

for Initial 5 years.

Nominee of BFL will be Chairperson of Institute of ManagementCommittee (IMC).

Periodical audit of training by BFL. BFL will engage pass out candidate for Apprenticeship Training and

thereafter for employment in their group of Industries.


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Case Study Maharashtra Pilot

The Maharashtra State Training Directorate curtailed long-term trainingprograms in certain trades as the demand contracted rapidly.

Because of the lower admissions, a considerable amount of the trainingequipment and teachers became under-utilized.

ITIs conducted short (three to six months) courses in basic trades

according to student demand. Courses were implemented under a pilotProduction-oriented Training Scheme, which aims to facilitate new trades

Between January 2002 and April 2003, around 6,560 youth weretrained. Fees were around Rs.300-400 per course ($7-10) and studentswere charged for the cost of raw materials and equipment depreciation.

The labor cost for delivering short-term training courses is based on

Rs.50 per hour ($1) Half of the revenue earned towards wage-related charges is credited to

ITI development accounts while the other half is distributed among theadministrative and teaching staff.


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Confederation of Indian Industries CII - launched its own Skills Development Initiative aligned with the NSDC

goals

CII - Employability of the population including drop-outs, semi-skilled un-

skilled labour

Encouraging entrepreneurship for further employment generation.

First skills centre at Chhindwara, MP, to train people in bar bending, grinding,

pipe fitting, welding

CII & HPCL launched the Swavalamban project to train 2,200 youth. Local

relevancy, in-built flexibility and are modular in form.

Sectoral studies- skills requirements in constructions, auto, retail, healthcareand banking

Skills up gradation and pre-departure orientation of potential emigrant workers

MOUs for content development in collaboration with other countries


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FICCI

Has adopted more than 67 ITIs across the country

Helping ITCs start short term training courses, improving

employability of students passing out of ITC

Designated National Level Assessor of Skills under the

DGE&T, Government of India on SDI-MES Programme. The

assessment of candidates is done by professionally trained /

experienced persons in relevant trades, on the date and time

mutually convenient to both assessor & candidates


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Summary

Although many govt. bodies are running skill developmentprograms there is no effective coordination agency till now

MES is a positive step by the govt. but with poor

implementation till now

Entrepreneurship skills, soft skills lacking in most govt .

Training programs

Many industries are partnering with/ adopting ITIs to meet

their manpower needs or as a part of their CSR program Unorganized sector is an uncontested market space but is

very challenging


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Next Steps

Contacting industries with active CSR programs in theskilling domain

Contacting industries already running partnerships with

ITIs

Exploring the funding and support options available from

NSDC in the form of loans and equity

Studying MES course content for relevance to our needs


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Sources

The Skill Development Landscape in India andImplementing Quality SkillsA Report by FICCI, August

2010

Skill DevelopmentPHD Chamber of Commerce and

Industry, September 2008

Skill Development Initiative Scheme, Implementation

manual- January 2008

CII Website, FICCI Website, NSDC Websites


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Questions

THANK YOU

Documents

Skilling Policy