SKILL DEVELOPMENT CHALLENGES AND RECENT INITIATIVES DIRECTORATE GENERAL of EMPLOYMENT & TRAINING

1. SKILL DEVELOPMENT CHALLENGES AND RECENT INITIATIVES DIRECTORATE GENERAL of EMPLOYMENT & TRAINING MINISTRY OF LABOUR & EMPLOYMENT GOVERNMENT OF INDIA

2. Skill Development Infrastructure in the country • Under Ministry of Labour & Employment • a) Craftsmen Training Scheme (CTS) • Number of ITIs/ITCs : 6079 (Govt.-1960 & • Pvt.- 4119) • Seating Capacity : 0.83 million • Number of trades : 110 • b) Apprenticeship Training Scheme (ATS) • Establishments : 23,800 • Capacity : 0.25 million • Trades : 187 • ii) Under other Ministries and Departments • Capacity : 1.5 million • Total Capacity : 2.6 million

3. Challenges • Quantitative • Entry into labour force – 12.8 million / Year • Training Capacity – 2.6 million / year • Gap - 10.2 million / year • Shortage of trainers • Qualitative • Supply Demand mismatch • Quality of Trainers • Low Industry participation

4. Strategy and Recent Initiatives • Upgradation of Existing Institutions (B) Development of Modular Employment Skills (C) Set up new Institutions

5. Upgradation of Existing Institutions • (A1) Upgradation of 500 Govt. ITIs • 100 Domestically funded and 400 World Bank assisted – at a cost of US $ 435 million. • Closer involvement of industry by forming an Institute Management Committee (IMC) headed by an Industry representative. • IMC given financial and academic powers to help run the institute. • Multiskilling courses- Broad Based Basic Training in Ist year . • Advanced training in next 6 months followed by specialized training in the industry for 6 months. • Multi-entry, multi-exit options

6. Cost - US $ 887 million 300 ITIs to be taken up every year from 2007-08 to 2010-11 and remaining in 2011-12. An Industry Partner(IP) is associated with each ITI. IMC is constituted with IP or its representative as Chairperson, registered as a Society & given financial & academic autonomy. Interest free loan of upto US $ 625000 is given directly to IMC and is to be repaid by it in 30 years. Interest free loan of US $ 187 million released to 300 ITIs during 2007-08. (A2) Upgradation of 1396 Govt. ITIs through Public Private Partnership

7. (A3)Strengthening of training infrastructure in NE States & J&K (i) North Eastern States • Estt. of 25 New ITIs • Upgradation of 35 Existing ITIs • Total Project Cost - US $ 28 million • Increase in intake capacity from 7,244 to 16,144 seats ii) Jammu & Kashmir • Estt. of one Women ITI at Jammu • Upgradation of 37 Existing ITIs • Total Project Cost - US $ 10 million • Increase in intake capacity from 4,364 to 6,200 seats

8. (B)Skill Development Initiative Scheme • Cost - US $ 137 million • Target – 1 million in five years and therafter one million every year • Demand driven short term training courses based on Modular Employable Skills (MES) decided in consultation with Industry – till now 308 courses notified. • Flexible delivery mechanism (part time, weekends, full time, onsite/ offsite) to suit various target groups. • Testing of skills of trainees by independent assessing bodies other than VTPs. • Certification by NCVT

9. (C) Setting up of New Institutions • Establishment of 1,500 new ITIs. • Establishment of 50,000 Skill Development Centres. • Total capacity 10 million per annum • Setting up of PM National Council on Skill Development • Setting up National Skill Development coordination Board . • Formulating National Skill Development Corporation with a corpus of US $ 3.75 billion.

10. Thank you