SKILL DEVELOPMENT PROGRAMMES IN INDIA

Transcription

1 SKILL DEVELOPMENT PROGRAMMES IN INDIA Background Note South-South Study Visit to China and India on Skills and Technical and Vocational Education and Training November 1-12, 2010 Prepared by Yash Pal Sharma October, 2010

2 Contents 1. INTRODUCTION OVERVIEW VOCATIONAL EDUCATION & TRAINING TRAINING OF TRAINERS : TRAINING FOR INDUSTRIAL WORKERS FOR SKILL UPGRADATION OTHER VOCATIONAL TRAINING PROVIDERS FUTURE DEMAND OF SKILL IN EMERGING SECTORS MAJOR ISSUES OF CONCERN: GOVERNMENT INITIATIVES TO ADDRESS THE CHALLENGES: QUALITATIVE & QUANTITATIVE IMPROVEMENT IN SKILL DEVELOPMENT: FUTURE STRATEGIES OF THE GOVT

3 1. INTRODUCTION According to the Constitution of India, vocational training is a concurrent subject matter, implying that the Central and State Governments share responsibility for vocational training. At the national level, the Directorate General of Employment and Training (DGE&T), Ministry of Labour is the nodal department for formulating policies, laying down standards, trade testing, certification and monitoring training programmes and matters connected in the field of vocational training. It also operates a number of training related institutions. At the state level, the State Government Departments responsible for vocational training participate and also operate training centres. At the same time the vocational education is offered through schools at 10+2 level under the purview of M/o HRD. In addition to above, 15 other ministries\department also conduct training courses as per their need. 2. OVERVIEW Secondary Education is a crucial stage in the educational hierarchy as it prepares the students for higher education and also for the world of work. Classes IX and X constitute the secondary stage, whereas classes XI and XII are designated as the higher secondary stage. The normal age group of the children in secondary classes is whereas it is for higher secondary classes. The rigor of the secondary and higher secondary stage, enables Indian students to compete successfully for education and for jobs globally. The population of the age group was 85.5 million in 2001 as per census data. The estimated population of this age group as on was 92.9 million, which is likely to increase to 96.9 million as on ,i.e, at the beginning of the 11th Five Year Plan and is likely to stabilize at around 97 million in STATISTICS The following statistics would give an overview of the present status of Secondary and Higher Secondary Education in the country as on No. of secondary schools 1,01,777 2 No. of hr. Secondary schools 50,272 3 No. of students at secondary level (IX-X) 24.3 Million 4 No. of students at hr. Secondary level (XI-XII) 12.7 Million 5 Population of age group (as on ) 47.1 Million 6 Population of age group (as on ) 45.8 Million 3

4 2.2. ENROLMENT AND DROPOUT RATES The table given below shows the enrolment and drop-out rates in classes ix-xii (as on ) S.no Indicators Boys Girls Total 1 Enrolment (IX-X) 14.6 Million 10.1 Million 24.7 Million 2 Enrolment (XI-XII) 7.4 Million 5.3 Million 12.7 Million 3 Gross enrolment ratio (IX-X) Gross enrolment ratio (XI-XII) Dropout rate (Class I-X) With the liberalization and globalization of the Indian economy, the rapid changes witnessed in scientific and technological world and the general need to improve the quality of life and to reduce poverty, it is essential that school leavers acquire a higher level of knowledge and skills than what they are provided in the 8 years of elementary education, particularly when the average earning of a secondary school certificate holder is significantly higher than that of a person who has studied only up to class VIII. It is also necessary that besides general education up to secondary level, opportunities for improvement of vocational knowledge and skill should be provided at the higher secondary level to enable some students to be employable 2.3. SKILL NEEDS TARGET GROUPS Skills and knowledge are the driving forces of economic growth and social development for any country. Countries with higher and better levels of skills adjust more effectively to the challenges and opportunities of world of work. As the proportion of working age group of years will be increasing steadily, India has the advantage of demographic dividend. Harnessing the demographic dividend through appropriate skill development efforts would provide an opportunity to achieve inclusion and productivity within the country and also a reduction in the global skill shortages. Large scale skill development is thus an imminent imperative. Over the last decades, India s growing population is being increasingly recognized as strength rather than a constraint in the context of economic development. Further, India being one of the youngest countries in the world with about 54 per cent of its population below 25 years of age and with the largest English speaking population, is well poised to help countries with aging populations. However, this strength can be capitalized, only by building and constantly upgrading the skill levels of the working population. Major challenge of skill development initiatives is also to address the needs of huge population by providing skills in order to make them employable and help them secure Decent work. Skill development for persons working in the unorganized sector is a key strategy in that direction. This will also inculcate dignity of labour and create greater awareness towards environmental, safety and health concerns. 4

5 A large number of students are not able to pursue education due to socio-economic constraints. For example, out of 100 students enrolled in class I, hardly 20 complete their school education and the remaining drop out at different stages. The education they receive may not be useful for a sustainable livelihood with quality. They try to enter the world of work without required skills and competencies to face the labour market competition. As a result, they remain unemployed, marginalized and poor. This target group needs skills for better employment opportunity. Potentially, the target group for skill development comprises all those in the labour force, including those entering the labour market for the first time (12.8 million annually), those employed in the organized sector (26.0 million) and those working in the unorganized sector (433 million) in The current capacity of the skill development programs is 3.1 million. India has set a target of skilling 500 million people by VOCATIONAL EDUCATION & TRAINING (a) VOCATIONAL EDUCATION As per business rules the responsibilities of offering Vocational Education Programme in the country rest with the Ministry of HRD. The Kothari Commission on Educational Reforms, 1966 had visualized that 25% of the students at the secondary stage would go for the vocational stream. The Kulandaiswamy Committee Report had pitched this number at 15% to be achieved by the year However, at present only about 5% of the children of the 16 to 18 age group are in the vocational stream. According to the recent NSSO data, only 5% of the population of the19 to 24 age group in India have learnt skills through the vocational education stream. Secondary and Higher Secondary Education are important terminal stages in the system of general education. At this stage, the youth decide whether to pursue education, opt for technical training or join the workforce. Vocational Education and Training (VET) is therefore suitable to specific target groups who want to enter into the world of work VET (Vocational Education & Training) help in solving the unemployment problem to a considerable extent by equipping these youth with tradable skills. In India, the vocational education programme at secondary school level was introduced in the year in as a state scheme. Due to financial constraints, the programme was introduced initially only in a few states. These states could not achieve the objective of the programme as expected. Many States/UTs felt the need for central assistance to run the programme. Accordingly, a Centrally Sponsored Scheme of Vocationalisation of Secondary Education was introduced during This gave new impetus to the programme. Since then around 6000 institutions at plus two stage of education have introduced the programme. Around 150 vocational courses are offered in these schools with an intake capacity of around 1 million students per year. This is one of the largest single vocational education and training programme followed by ITIs and Polytechnics in India. The programme covers all major career areas like 5

6 Agriculture, Engineering and Technology, Business and Commerce, Home Science, Health and Paramedical, and Humanities, Science and Education. (i) Central Board of Secondary Education (CBSE):- The Central Board Of Secondary Education (CBSE) with a view to give new dimension and direction to vocational stream, has taken up vocational courses in its senior school curriculum. At present the CBSE offers 28 packages comprising of 85 subjects under vocational stream. CBSE has launched a new vocational package called Financial market Management (FMM) with the collaboration of National Stock Exchange Limited (NSEL) The new vocational course on Health Care Sciences will be introduced from the academic session The necessary training for the teachers is planned with the cooperation of academy of Hospital Administration, Noida (AHA). The text books for class XI in the subject are available in CBSE publication store. The CBSE has approached Department of Higher Education, Govt of India to ensure vertical mobility of the CBSE pass outs to facilitate admission in under graduate courses in different universities/colleges throughout the country. (ii) National Institute of Open Schooling (NIOS) The secondary and senior secondary & vocational courses of NIOS are offered through 3300 study centres. About 80 vocational education courses in the areas agriculture, business and commerce, engineering and technology, health and paramedical, home science & hospitality management, teacher training, computer and IT related sectors are offered by NIOS under the programme. (b) VOCATIONAL TRAINING DGE&T in the Ministry of Labour and Employment is an apex organization for development and co-ordination of vocational training including women s training. DGE&T offers range of training courses catering to the requirement of various sectors of economy through a network of 8014 (as on 5/3/10) Industrial Training Institutes(ITIs)/Industrial Training Centres (ITCs). There are 78 Central Institutes under the control of DGE&T which impart training to ITI instructors, industrial workers, technicians, junior and middle level executives, supervisors, foremen, women, physically challenged persons and members belonging to SC/ST. These Institutes also conduct training related research and development of course curriculum and instructional media packages for the use of trainees and instructors. DGE&T runs the following two flagship schemes to impart training to school leavers which form the backbone of the national vocational training system of the country:- 6

7 (i) CRAFTSMAN TRAINING SCHEME (CTS) -(PRE SERVICE TRAINING) Background: As per the Allocation of Business by the Parliament, the Ministry of Labour is inter alia charged with the responsibilities for vocational skill training of the labour force. These responsibilities are discharged through the Directorate General of Employment and Training, which is an attached office of the Ministry of Labour and Employment. DGE&T initiated Craftsmen Training Scheme (CTS) in 1950 by establishing about 50 Industrial Training Institutes for imparting skills in various vocational trades to meet the skilled manpower requirements for technology and industrial growth of the country. Objectives of the Scheme: To equip the human resource with appropriate skills required in the labour market. To make youth productive by providing employable skills both for wage and self employment. To produce craftsmen of high quality To ensure steady flow of skilled workers in industrial /service sectors. To raise the quality and quantity of industrial production by systematic training of potential workers. Several new private ITIs were established in 1980 s in Southern states mostly in Kerala, Karnataka and Andhra Pradesh, from where trained craftsmen found placement mainly in the Gulf countries. In 1980, there were 831 ITIs and the number of Training Institutes rose to 1887 in During 1990 s, the growth of ITIs had been steep and presently there are 8014 Institutes offering CTS training for school leavers. Number of ITIs/ITCs 8642 (2178 ITIs in Government Sector 6464 ITCs in private Sector) Seating Capacity 1.21 million Period of Training 6 months to 3 years Age 14 to 40 years but no limit for women Entry Qualifications 8 th class pass to 12 th class pass depending upon the trades Number of Trades 115 Under the Constitution of India, Vocational Training is a concurrent subject both of Central and State Governments. Responsibilities being shared by Central Government & State Govt. are as under 7

8 Responsibility of Central Govt: To frame overall policies, norms, and standards for Vocational Training. Formulation of new training schemes for Vocational Training. Development of course curriculum Affiliation of institutes Trade testing & certification Conducting one year instructor training course for serving & potential instructor of ITIs/ITCs. Conducting courses for skill up gradation of industrial workers by offering short term & long term courses in specialized field. Implementation & regulation of training for trade apprentices under the Apprentices Act, Organizing vocational training programmers for women. Bilateral agreements and cooperation in field of vocational training. Responsibility of State Govt: Day to day administration of Industrial Training Institutes/ Centres. Implementation of Craftsmen Training Schemes in the ITIs/ITCs. Conducting training courses in ITIs Setting of new institute, addition of trade units in the existing institute as per the requirement of local industries. Conduct of trade test & award of certificate. Implementation of Central Schemes The Central Govt. is advised by the National Council for Vocational Training (NCVT), a tripartite body having representatives from employers, workers and Central/ State Government. Training Experts, Learned Bodies, Women Organization & representatives from SC & ST. Similar Councils known as State Council for Vocational Training (SCVT) are constituted to advice respective State Governments on issues relating to Vocational Training. Industry participation in Craftsmen Training: Training courses under DGE&T are offered with active involvement of industry in the following ways. National Council for Vocational Training (NCVT) have proper representation of Industry Associations and, therefore, are involved at every stage of formulation of policy, norms standards & procedures The course curricula are developed by Trade Expert Committees constituted for each trade, which comprise of experts drawn from the relevant Industry & Technical institutes involved in imparting skill training. 8

9 DGE&T initiated a pilot programme of formation of Institute Managing Committee (IMC) for ITIs in 1998 in collaboration with Confederation of Indian Industry (CII) to improve cooperation between Industry and ITIs. Under this concept, Industry is associated as partner rather than advisors. An IMC is formed at the ITI level, which manages policy, development & technical issues of ITI. The chairperson of the committee is a prominent representative of the local industry. IMCs ensure greater & active involvement of industry in all aspects of training. So far IMCs have been constituted for more than 700 ITIs in 28States. The experience is that an actively functioning IMC can bring about significant improvements in the functioning of ITI. Trade Testing and Certification: All-India Trade Tests are conducted by the DGE&T, Ministry of Labour under the aegis of the National Council for Vocational Training in July and January every year. The trainees of affiliated trades/units and eligible private candidates appear in the trade tests. National Trade Certificates are awarded to the successful candidates. National Trade Certificate is a recognized qualification for recruitment to relevant posts and services in Central/State Government establishments. (ii) APPRENTESHIP TRAINING SCHEME (ATS) (SHOP FLOOR TRAINING) Background Development of human resource is crucial for the industrial development of any nation. Upgradation of skills is an important component of Human Resource Development. Training imparted in Institutions alone is not sufficient for acquisition of skills and needs to be supplemented by training in the actual work place. Objectives Apprentices Act, 1961 was enacted with the following objectives: - To regulate the programme of training of apprentices in the industry so as to conform to the prescribed syllabi, period of training, etc. as laid down by the Central Apprenticeship Council; and To utilize fully the facilities available in industry for imparting practical training with a view to meeting the requirements of skilled manpower for industry. Implementation of the Act DGE&T is responsible for implementation of the Act in respect of Trade Apprentices in the Central Government Undertakings and Departments. It is done through six Regional Directorates of Apprenticeship Training located at Kolkata, Mumbai, Chennai, Hyderabad, Kanpur and Faridabad. 9

10 State Apprenticeship Advisers are responsible for implementation of the Act in respect of Trade Apprentices in State Government Undertakings/ Departments and Private Establishments. Department of Secondary and Higher Education in the Ministry of Human Resource Development is responsible for implementation of the Act in respect of Graduate, Technician & Technician (Vocational) Apprentices. This is done through four Boards of Apprenticeship Training located at Kanpur, Kolkata, Mumbai & Chennai. Central Apprenticeship Council It is an apex statutory tripartite body to advise the Government on laying down of policies and prescribing norms & standards in respect of Apprenticeship Training Scheme. It is tripartite by constitution with members from Govt. both Central and State/UTs, Employers & Trade Unions. Categories of Apprentices: There are four categories: Trade Apprentices Graduate Apprentices Technician Apprentices Technician (Vocational) Apprentices Coverage: It is obligatory on the part of employers both in Public and Private Sector establishments having requisites training infrastructure as laid down in the Act, to engage apprentices. Total 254 groups of industries are covered under the Act. Establishments covered 25,500 Capacity million Trades 235 Entry Qualification 8th to 12th standard Period 6 months to 4 years Testing and Certification of Trade Apprentices All India Trade Tests (AITT) for trade apprentices are conducted by National Council of Vocational Training (NCVT) twice a year ( October/ November and April/May). National Apprenticeship Certificates (NAC) are awarded to those who pass the AITT. NAC is recognized for employment under Govt./Semi-Government departments/ Organizations. Training of Graduate, Technician & Technician (Vocational) Apprentices 122 subject fields have been designated for the category of Graduate & Technician apprentices. 10

11 122 subject fields have been designated for the category of Technician (Vocational) apprentices. Period of post qualification training for these categories is one year. Seats are located based on managerial/ supervisory posts and training facilities. Training programme is prepared in joint consultation between Apprenticeship Adviser & Establishment concerned. Certificates are awarded on completion of training by the Department of Education, Ministry of Human Resource Development. Seat utilization in respect of technician (vocational) Apprentice. Seat located 99000, Seat utilized 65,219. (iii) WOMEN s TRAINING SCHEME (PRE SERVICE TRAINING) To give special focus on the skill training development of women, DGE&T has set up a Women's Training Directorate, which aims at promoting participation of women in skill training. Various courses have been designed and introduced under different schemes for young women with class X or XII pass qualifications. (a) Vocational Training Programme for women - Central Sector:- Institution Network:- The Women s Vocational Training Programme at Directorate General of Employment & Training, Ministry of Labour & Employment is implemented through a network of 11 Institutes - one National Vocational Training Institute For Women & ten Regional Vocational Training Institutes For Women (RVTIs). Basic skill training (as under Craftsmen Training Scheme):- o Minimum age: 14 years; o Upper age: No Bar. o Minimum Qualification.: 10th/12th class pass under 10+2 system, depending on the training area opted; Advanced skill training:- women having National Trade Certificate (NCVT) in relevant trade (Upper age: No Bar); Post-advanced training:- women having Advanced Training certificate under Women s Vocational Training programme. Short-term need-based courses conducted mostly from June to September every year. (b) Vocational Training Programme for women - State Sector:- Vocational Training facilities exclusively for women at Craftsmen level (Basic courses) are provided through a network of Women Industrial Training Institutes (WITIs)/ Women wings in general ITIs under the administrative control of the State Governments. The details on number of WITIs/wings etc. & the training seats sanctioned is collected from the respective State Governments and compiled by the Women s Training Directorate at DGE&T There are about 1188 Women ITIs and women wings in general ITIs (269 Govt. Women ITIs and

12 Private Women ITIs, 698 Women training Wings in Govt. ITIs and 120 Women training Wings in Private ITIs) having a total of Training seats. To promote participation of women in Craftsmen Training, the NCVT has recommended that the State Government reserve 25-30% seats for women in general ITIs. The Women Industrial Training Institutes (WITIs) / Women s wings in General ITIs offer training in Basic Skill Courses (as under Craftsmen Training Schemes) in selected trades out of the 60 engineering & 50 non-engineering trades approved by the NCVT. (iv) VOCATIONAL TRAINING FOR INFORMAL SECTOR About 20 million children enroll in the first standard every year. However, by the time they reach 10th standard, 63% of the children drop out and by the time they reach the 12th standard, 90% children drop out for various reasons. In order to impart relevant skills for their gainful employment in the industry, it was decided to formulate a scheme which can cover this vast magnitude of youth for skill development and gainful employment. A new scheme titled Skill Development Initiative (SDI) based on the Modular Employable Skills (MES) was formulated in The scheme covers early school leavers and existing workers of 14 years of age or above. Objective of the scheme is to train 1 million persons according to the need of the industry in next five years at a cost of Rs million and one million every year thereafter. Under the scheme, demand driven short term modular skill courses are being run in consultation with the industry. MES is minimum skill set which is sufficient for gainful employment. The training is imparted through a flexible delivery mechanism (part time, weekends, full time, on-site and off-site) to suit needs of various target groups. The services of existing or retired faculty or guest faculty are utilized. Existing ITIs/ITCs or any other reputed institutions with adequate infrastructure to impart training are empanelled as Vocational Training Providers (VTP). On completion of the training, the competencies of trainees are assessed by independent assessing bodies. On the basis of independent competency assessment, NCVT certificate is awarded to the successful trainee. The costs of successful trainees are borne by Government of India. A total of 5215 vocational training providers have been registered across the country course modules covering 43 sectors of economy have been developed and approved by National Council for Vocational Training. Twenty two organizations have been empanelled as Assessing Bodies for conducting assessment of competencies. So far 5,96,938 trainees have been trained. 12

13 4. TRAINING OF TRAINERS : Training of Craft Instructors is the responsibility of DGE&T in the Ministry of Labour & Employment. The Craft Instructors Training Scheme is operational since the inception of the Craftsmen Training Scheme. The first Craft Instructors Training Institute was established in 1948 in Chennai. Subsequently 5 more institutes namely, Central Training Institute for Instructors {now called Advanced Training Institutes (ATI), at Ludhiana, Kanpur, Howrah, Mumbai and Hyderabad were established in 1960 s by DGE&T. Objective of the Craft Instructor Training Scheme is to train Instructors in the techniques of imparting industrial skills. Under the programme, Instructors from State Govt. ITI s/private ITC s and Training Centres established by industries under the Apprentices Act are trained in 27 trades. Total seating capacity in the trades in operation in the above stated six Institutes are The following types of courses are offered at the above institutes: - One-Year Courses to provide comprehensive training both in skill development and principles of teaching.. Modular pattern of training in the following four modules are also offered for Engineering Trades. S.No Name of Module Duration 1 Trade Technology 1 Trade Technology 11 3 months 3 months 2 Training Methodology 3 months (Principles of Teaching) 3 Engineering Technology 3 months Refresher Courses to update and upgrade the knowledge and skill of the instructors and to keep them abreast of technological developments in Industry. For non Engineering Trades training is offered in three modules each of 4 months duration. 1. Training Methodology 2. Trade Skill-1 3. Trade Skill -II 13

14 5. TRAINING FOR INDUSTRIAL WORKERS FOR SKILL UPGRADATION. In order to upgrade and update the skills of serving industrial workers, an Advanced Vocational Training Scheme (AVTS) is in operation since The scheme was taken up by DGE&T, Ministry of Labour in collaboration with UNDP/ ILO in 1977 at 6 Advanced Training Institutes (ATIs) under DGE&T and 16 Industrial Training Institutes (ITIs) of the 15 State Governments. The objectives of the scheme are to upgrade and update the skills of serving industrial workers to specialize in their field of work. Under the scheme, training in selected skill areas is being imparted through short-term modular courses of one to six weeks duration. Tailor-made courses suiting to the specific requirements of industrial establishments are also offered & over 1,76823 industrial workers/ technicians have made use of the training facilities at 6 ATIs under DGE&T till March, OTHER VOCATIONAL TRAINING PROVIDERS (a) There are 15 other departments/ministries offering skill training courses as per their needs. The details of the training schemes, target group, duration of the training courses (short term/long term), Ministries/Departments is given in the annexure as provided. (b) Training by Private Sectors: There are certain sectors of economy where skill requirement is very high but none of the Ministries is involved in skill development for example construction sector, IT enabled services, consumer and retail sector, financial sector etc. The training activities in the private sector are being carried out according to market demand but there is no monitoring and planning at the level of the Ministry. National Policy on Skill Development would encourage Ministries/Departments concerned to increase their involvement in skill development. They may carry it out directly or through partner organizations. 14

15 7. FUTURE DEMAND OF SKILL IN EMERGING SECTORS On the basis of the study conducted by CII, the following requirement of the skilled workers at different level has been projected. S.no Sector Demand (in Mn) Skill level break up 1 auto specialised skill-5% skill category level II- 25% skill category level I- 30% minimal education skillable- 40% 2 Construction 15 specialised skill-2% skill category level II- 11% skill category level I- 12% minimal education skillable- 75% 3 retail 4 to 5 specialised skill-6-8% skill category level II % skill category level I % minimal education skillable % 4 Health care specialised skill-10% skill category level II- 40% skill category level I- 16% minimal education skillable- 34% 5 Banking & financial services specialised skill-5% skill category level II- 15% skill category level I- 65% minimal education skillable-15% 6 Creative industry specialised skill-5% skill category level II- 20% skill category level I- 65% minimal education skillable-10% 7 Logistics drivers:51 Mn Warehouse managers: 8000 TOTAL Mn 15

16 CII has further projected Incremental Human Resource Requirement till 2022 Incremental Human Resource Requirement Sectors Mines & Minerals Construction Engineering Banking & Insurance Drugs & Pharma Biotech Healthcare Textiles IT & ITeS Tourism Agro & Food Processing Paper Chemicals & Fertilizers TOTAL Mn Hence total requirement of skilled workforce by 2022 will be about 300 Mn. 8. MAJOR ISSUES OF CONCERN: (a). Limited capacity: While realizing the transformation of Skill Development, the first major roadblock is the limited capacity vis-a vis the number of aspirants joining the vocational training courses. Potentially, the target groups for skill development comprise all those in the labour force, including those entering the labour force for the first time which has been estimated to be 12.8 million per annum, the work force in the organized sector (26.0 million) and in the unorganized sector (433 million in ). The estimated current capacity is only about 3.1 million. (b) Quality and relevance: Quality and relevance of skill development are key to India s global competitiveness as well as improving an individual s access to decent employment. For enterprises to compete in the global economy, the quality of training must reach internationally comparable standards and be relevant to the needs of national and international markets. To increase the relevance with future employment market including promotion of self employment, soft skills and entrepreneurship skills need to be made integral part of skill development. (c). Mismatch : One of the major issues in skill development is mismatch between the demand and supply of skills. Presently the labour market is facing a strange situation, where on the one hand, an employer does not get manpower with requisite skills and on the other hand, millions of job seekers do not get employment. Mismatch between the supply and demand of skills is costly 16

17 both for the economy and for the individual. Such a mismatch compromises potential economic development because the economy lacks the relevant skill base, while individuals suffer from unemployment or underemployment because they lack skills needed by the labour market. To over come this issue there is a need for establishing a mechanism for providing access to information on skill inventory and skill map on real time basis. (d) Low industry participation and Setting up of Sector Skills Council: In order to make the skill development system relevant and driven by labour market signals, it is necessary to increase participation of industries through Sector Skill Councils(SSCs). Functions of SSCs also include identification of skill gaps, preparation of Skill Development plans and establishment of well structured sector specific Labour Market Information System to assist planning and delivery of training. (e). Shortage of Trainers: There is a urgent need for improving the quality and size of trainer resource. Skill upgradation of trainers, their quality assurance, and improvement of their status in society are important to improve quality of training. (f). Expansion of outreach and equity access. Providing opportunities of Skill Development to all sections of society including women and disadvantaged sections such as SCs, STs, OBCs, minorities and economically challenged and disabled persons of society is necessary to achieve inclusive growth. Also providing skill development opportunities in rural areas, hilly areas, border and difficult areas, naxal affected and remote areas of the country enhancing their access to training; improving employability and increasing employment opportunities for them is essential for development of a just and equitable society. (g). Establishment of National Vocational Qualifications Framework- NVQF will interalia include opportunities for horizontal and vertical mobility between school and technical education, recognition and certification of competencies irrespective of mode of learning. This will also facilitate life long learning. (h) Modern training technologies Use of modern training technologies for Skill Development including distance learning, e-learning, web based learning, etc are necessary to reach out to larger number of people in every hook and corner of the country. (i). Skill Development in Unorganized sector To promote Skill Development in Unorganized sector, following issues need to be addressed: (i) Skill upgradation and certification (ii) Recognition of prior learning. (iii) Provision of literacy and basic education. (iv) Replication of successful models. (v) Setting up of Skill Development Centres (SDCs) (vi) Provision of mobile training vans for larger out reach. 17

18 (j). Financing of Skill Development: All stakeholders, the governments- Centre and State, the enterprises-public and private and direct beneficiary- the individual should share the burden of mobilising financial resources for skill development. 9. GOVERNMENT INITIATIVES TO ADDRESS THE CHALLENGES:- The Prime Minister while addressing the nation on 15the August 2006 talked about setting up a Vocational Education Mission and a Task Force has already been constituted by the Planning Commission. It is in this context that vocational and skill education has to be taken earnestly during the 11th Five Year Plan to maintain high economic growth through increased productivity, which in turn will be possible through acquisition of necessary skills. Priority on skill development- 11 th five year plan The Eleventh Five-Year Plan indicates that generation of productive and gainful employment, with decent working conditions, on a sufficient scale to absorb our growing labour force must form a critical element in the strategy for achieving inclusive growth. The Plan stresses that the ability to sustain labour-intensive growth depends crucially on the expansion of the labour force s skill capabilities with skills and knowledge as driving forces of economic growth. National Policy on Skill Development recognizes the unprecedented challenge faced by India, for skilling or up-skilling 500 million people in the next 13 years. With this challenge in view, there is an urgent need to transform India s Skill development landscape over the next decade. (a) Initiatives taken at national level: (i) National Policy on Skill Development : Government had formulated National Policy on Skill Development. Policy was approved by Union Cabinet on 23rd February The policy is a guiding document for implementation of various skill development programmes in the country. Aims of the policy includes Enhancing individuals employability (wage/self employment) and ability to adapt to changing technologies and labour market demands. The policy has set a target of skilling 500 million persons by the year Training target for all Ministries / Departments, offering training programmes for sectors under their control, have been indicated in policy document and they have been mandated to fulfill their commitments. (ii) (iii) Coordinated Action Plan for Skill Development It has been approved by the cabinet having 3-tier structure, aiming to create a pool of skilled personnel in appropriate numbers with adequate skills across the economy Prime Minister s National Council on Skill Development It has been set up as an apex institution to review the spectrum of skill development efforts for policy direction. The Ministers for Human Resource Development; Finance, 18

19 19 Industries; Rural Development; Labour & Employment; Micro, Small and Medium Enterprises; Housing & Urban Poverty Alleviation; Tourism; Social Justice and Empowerment ; Youth Affairs ; Sports and Minster of State (Independent Charge) for Women and Child Development are members and Dy. Chairman, Planning Commission, Chairperson of the National Manufacturing Competitiveness Council, Chairperson, National Skill Development Corporation and 6 experts in the area of skill development are other members. Principal Secretary to the Prime Minister is the Member Secretary to the Council. The functions of the above council are as under: i. Lay down overall broad Policy objectives, strategies, financing and governance models to promote skill development ; ii. Review progress of activities relating to skill development periodically and provide mid-course corrections, including changes in part or whole of current schemes under implementation; iii. Orchestrate Public Sector/Private Sector initiatives in a framework of a collaborative action. (iv) A National Skill Development Co-ordination Board has been set up under the Chairmanship of Dy. Chairman, Planning Commission. Secretaries of Ministry of Human Resource Development, Labour & Employment, Rural Development, Housing and Urban Poverty Alleviation, Micro Small & Medium Enterprises and Finance are members. Chairperson/Chief Executive Officer of National Skill Development Corporation, Secretaries of four States by rotation, for a period of two years and three distinguished academicians/subject area specialists are other members. Secretary, Planning Commission is Member Secretary of the Board. The Board enumerates strategies to implement the decisions of the Prime Minister s National Council on Skill Development and develop appropriate operational guidelines and instructions for meeting the larger objective of meeting skill needs of the country. (v) A National Skill Development Corporation has been set up by the Government as a nonprofit company under Section 25 of the Companies Act, 1956, under the Ministry of Finance. It has an equity base of Rs 100/- million of which 49% is contributed by the Government and 51% by the private sector. The main objective of this corporation is: to mobilize funds for skill development and to manage those funds. to establish, manage, run and promote institutes and polytechnic for imparting skills training. to play the role of a market maker by establishing a price mechanism, correlating and bridging demand-supply asymmetries, and creating a viable skill development chain to establish credible independent Certification systems to constitute Sector Skills Councils (SSCs). 3. State Missions on Skill Development : State Governments have also been advised to set up State level missions under the chairman ship of Chief Ministers of respective States to guide and review the Skill Development activities at State level. As a follow-up, many States have set up State Level Skill Development Mission.

20 10. INITIATIVES BY MINISTRY OF LABOUR & EMPLOYMENT : Broad approach adopted by Ministry for Skill Development Modernize/ upgrade all govt. Institutes according to industrial requirement. Set up large number of new institutes in public, private and public private partnership. Run existing ITIs/ ITCs in 2-3 shifts to optimally utilize existing infrastructure. Involve industry closely in running of skill development programs. Introduce long term and short term modular courses to cover all sectors of economy. Training of large number of trainers. Fill up existing vacancies of Principals & instructors. Use Information & Communication technology tools to upscale skill development efforts. Undertake systemic reforms such as development of National Vocational Qualification Framework (NVQF), setting up of Sector Skills Councils (SSC), development of Labour Market Information System(LMIS), introduction of Soft Skills for better employability, etc. 11. QUALITATIVE & QUANTITATIVE IMPROVEMENT IN SKILL DEVELOPMENT: DGE&T has taken up various new schemes for qualitative & quantitative enhancement of vocational training. Objective of these Schemes are to improve the quality of vocational training in the country and to make it demand driven so as to ensure better employability of its graduates. (a) Quality improvement in Vocational Training The following major schemes have been taken up:- (i) Upgradation of 100 ITIs into Centres of Excellence with domestic funding: Union Finance Minister in his Budget Speech announced measures for upgradation of 100 ITIs through domestic funding and 400 ITIs through World Bank assistance. 100 ITIs distributed in 22 States/UTs were taken up for upgradation and imparting training in new multi-skill courses. Total cost of the scheme is Rs million out of which 75% is centre share and 25% State share. Out of Central share of Rs million, an amount of Rs million has already been released to the States till Feb, The closing date of the scheme is It is proposed to revise the scheme by providing more funds at least at par with other scheme under progress for upgradation of Govt. ITIs in the country. (ii) Upgradation of 400 ITIs through World bank assistance Vocational Training Improvement Project (VTIP) Union Finance Minister in his Budget Speech and reiterated again in , had announced measures for up-gradation of 500 ITIs in the country. Subsequently, up-gradation 20

21 of 100 ITIs has been taken up from domestic resources and 400 ITIs through World Bank assistance under Vocational Training Improvement Project(VTIP). The objective of the VTIP is to improve the employment outcomes of graduates from the vocational training system, by making the design and delivery of training more demand responsive. There is paradigm shift from the existing pattern of training in ITIs. Multiskilling courses during the first year, followed by advanced/ specialized modular courses in the second year by adopting industry wise cluster approach, multi entry and exit provisions and Public-Private- Partnership in the form of Institute Management Committee(IMCs) to ensure greater and active involvement of industry in all aspects of training. More than three fourth Industrial Training Institutes (ITIs) covered under the VTIP follow the said pattern. Three important components of the VTIP are as follows: Component 1, Improving Quality of Vocational Training, focuses on: (a) improving quality and relevance of training imparted in 400 eligible ITIs, (b) upgrading training of ITI instructors, and (c) providing incentive funds to States to reward good performance in project implementation. Component 2, Promoting Systemic Reforms and Innovations, focuses on activities that lead to enhancement in the overall reach and effectiveness of the vocational training system in the medium-term. Component 3, Project Management, Monitoring and Evaluation, will provide support for: (a) establishment of project management and implementation structures at the national and State levels, (b) improvements in system management and implementation of reforms through training of policy planners, managers and administrators, (c) project monitoring and dissemination of information with the help of a computer-based management information system, and (d) project evaluation and, policy and system research studies at the national and State levels. The project was signed on 2nd Nov 2007 and made effective from 17th Dec IDA Credit is US$ 280 million. India is a fast growing economy with a rising demand for skilled workers, which enhances the efficiency and flexibility of the labor market, reduces skills bottlenecks, and enhances mobility and productivity. There is acute shortage of trained trainers Also, many students cannot find employment after their graduation. Some key constraints to improve the quality of vocational training include a rigid management system both at the central and state levels, lack of information on training, nascent involvement of industry in the vocational training system, and lack of incentives to improve performance at the institutional level. 21

22 Addressing these challenges is a long-term agenda and VTIP is expected to help focus attention on policy reforms which, interalia, is likely to lead to significant improvements in the quality of the system. (iv) Upgradation of 1396 Government ITIs through Public Private partnership: This scheme was launched during with an outlay of Rs million for a period of 5 years. Under the Scheme, 300 ITIs are being covered every year and an amount of Rs. 25 million is being released to each ITI as interest free loan repayable in 20 equal annual installments in 30 years after a moratorium of 10 years. Under the scheme an Institute Management Committee headed by an industry partner is constituted with five members from the industry, five members from the Government and Principal as Member Secretary. The Institute Management Committee is registered as a society and academic and financial powers are delegated to the IMC societies for day to day functioning of the ITI. IMC functions as an autonomous management. It prepares the institute development plan which lays down the road map for the modernization of the institute. Apart from the financial and academic autonomy, the IMCs are also allowed to make 20% admissions in the ITI as per their own selection criteria. During , 300 ITIs were taken up and an amount of Rs million was released to the IMC societies. Subsequently in and , 600 more ITIs were covered and an interest free loan of Rs million was released to the IMC societies. (iv). PM s Package for Establishment of new ITIs and upgradation of existing ITIs in North Eastern sates and Jammu & Kashmir A Scheme was launched in with an objective to set up 22 new ITIs and strengthening 37 existing ITIs with the cost of Rs.1000 million. Another three additional new ITIs, two in Sikkim and one in Assam were approved later on with an additional allocation of Rs.137 million. This Scheme was merged with another centrally sponsored scheme for J&K in the year with the total allocation of Rs.1507 million (Rs.1137 million for north Eastern states and Rs.37 million for J&K). Both the Schemes have closed on (b) QUANTITATIVE IMPROVEMENT The following major schemes have been taken up: (a). Skill Development Initiative About 20 million children enroll in the first standard every year. However, by the time they reach 10 th standard, 63% of the children drop out and by the time they reach the 12 th standard, 90% children drop out for various reasons. In order to impart relevant skills for their gainful employment in the industry, it was decided to formulate a scheme which can cover this vast magnitude of youth for skill development and gainful employment. A new scheme titled Skill Development Initiative (SDI) based on the modular employable skills 22

23 was formulated in The scheme covers early school leavers and existing workers of 14 years of age and above with a target to train 1 million persons according to the need of the industry in next five years at a cost of Rs million and one million every year thereafter. A short brief on achievement under the scheme has already been given in the preceding paras. (b). Kaushal Vikas Yojana:- In compliance with the announcement made by Hon ble Prime Minister, DGE&T, Ministry of Labour & Employment has taken up a project titled Kaushal Vikas Yojana to set up 1500 new Industrial Training Institutes (ITIs) & 1000 Skill Development Centres (SDCs) in PPP by involving three partners:- (a) Private Training Provider playing the lead role (b) State Governments are expected to extend all the possible logistical support, land & provide basic infrastructural facilities free of cost and (c) Central Government providing Viability Gap Funding (VGF). The details of these schemes are being worked out. 12. FUTURE STRATEGIES OF THE GOVT The strategies of the Govt to address the challenges in the skilled development programme of the country are as under: (a) Expansion of outreach, increasing capacity & capability of existing system National Policy on Skill Development is committed to provide opportunity of Skill Development to all sections of society including women and disadvantaged sections such as SCs, STs, OBCs, minorities, economically challenged and disabled persons of society. Also providing skill development opportunities in rural areas, hilly areas, border and difficult areas, naxal affected and remote areas of the country. This would result in a National Policy on Skill Development has motivated the future targets of various Ministries for their skill development programme and enhancing their access to training; improving employability and increasing employment opportunities. DGE&T has taken initiatives for setting up of 1500 ITIs and 1000 SDC across the country to meet the Skill Development need in line with policy direction. Focus will be on modular courses, short term relevant and effective courses, suitable for employment. Training program will be conducted in multiple shifts and possibility will be explored to utilize spare capacity of High Schools/ Polytechnics/ Engineering Colleges and industries for skill development. 23