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Upgradation of 1396 Government ITIs through Public Private Partnership Directorate General of Employment & Training

Upgradation of 1396 Government ITIs through Public Private Partnership Directorate General of Employment & Training, Ministry of Labour & Employment, Government of India. Craftsmen Training Scheme (CTS) at a glance. The CTS, which produces, semi-skilled workers, is implemented through :

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Upgradation of 1396 Government ITIs through Public Private Partnership Directorate General of Employment & Training

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  1. Upgradation of 1396 Government ITIs through Public Private Partnership Directorate General of Employment & Training, Ministry of Labour & Employment, Government of India.

  2. Craftsmen Training Scheme (CTS) at a glance • The CTS, which produces, semi-skilled workers, is implemented through : No.(as on 01.01.2007) ITIs 1896 ( State Government owned) ITCs 3248 (Privately owned) Total 5144 • During last few years a need was felt to improve the quality of the students graduating from these Vocational Training Institutes.

  3. Initiatives for Upgradation of Government ITIs • Scheme for Upgradation of 500 ITIs into Centres of Excellence. • 100 ITIs through Domestic Funding taken up in 2005-06. • 400 ITIs through World Bank Assistance taken up 2006-07 onwards. • Upgradation of the remaining 1396 Government ITIs announced by Union Finance Minister in Budget Speech 2007-08.

  4. Summary of Budget Announcement 2007-08 Upgradation of 1396 Govt. ITIs into Centres of Excellence. Under Public Private Partnership mode. Interest free loan of upto Rs.2.5 crore to each ITI as seed money. Financial and academic autonomy to the new management. State Government, as owner to the ITI, to regulate admissions and fees. An MoU to be signed amongst the stake holders before release of loan amount.

  5. ‘ Upgradation of 1396 Government ITIs through Public Private Partnership’ • The scheme has been framed within the broad parameters laid down in the Budget announcement. • Major objectives of the scheme. • To improve quality of training in such a way that it leads to better employability. • To provide training according to the needs of the market. • To involve private sector in this endeavor. • 300 ITIs to be taken up for upgradation every year from 2007-08 to 2010-11 and remaining in 2011-12.

  6. Salient Features of the Scheme An Industry Partner (IP) is associated with each ITI . IP is selected by the State Government in consultation with Industry Associations. Institute Management Committee (IMC) is constituted / reconstituted with IP or its representative as Chairperson. In IMC 4 members nominated by IP and 5 by State Govt. and Principal of ITI to be ex-officio member Secretary. Interest free loan of upto Rs.2.5 crore to be given directly to IMC and also to be repaid by it. ITI to be upgraded as a whole and/or a Centre of Excellence in a trade sector can also be started.

  7. Salient features Contd. IMC is registered as a society and entrusted task of managing the ITI. It is given financial and academic autonomy. A Memorandum of Agreement is signed among the stake holders. Institute Development Plan (IDP) is prepared by IMC giving KPIs and financial requirements for next 5 years. IDPs are scrutinized by State Steering Committee and sent to Central Government. After approval of IDPs Central Govt. releases interest free loan upto Rs.2.5 crore directly to the IMC Society.

  8. Role of Industry Partner Though not a pre-condition but it would be desirable for Industry Partner to make financial contribution. IP may contribute machinery and equipment for upgradation of the ITI. IP will arrange training for faculty members and on-the-job training for the students of the ITI. IP, as Chairman of the IMC, will lead the process of upgradation of the ITI.

  9. Role of State Government To have administrative control over the staff and pay for their emoluments. To ensure that vacancies of instructors do not exceed 10% of sanctioned strength. To fill additional positions recommended by IMC on priority. To meet office, administrative and other running expenses of the ITI. To regulate admissions and fees as owner of the ITI.

  10. Implementation and Monitoring Agencies National Steering Committee (NSC), with adequate representation from Industry and State Govt., as Apex body to guide implementation at national level. National Implementation Cell (NIC) constituted in DGE&T to manage and monitor the Scheme. State Steering Committee (SSC) with adequate representation from Industry to oversee implementation at State level. State Implementation Cell (SIC) constituted at State level to implement scheme.

  11. Repayment of Loan • On repayment, moratorium of 10 years and thereafter repayment in equal annual installments in 25 years. • In case of default, penalty or any other action to be decided by NSC. • IMC may generate revenue by: • running short term training courses for industries. • running production/service centres. • providing consultancy. • any other method using training infrastructure.

  12. Conditions for use of Funds • Interest free loan and other revenue generated by IMC to be kept in a public sector bank account. • Loan may be used for: -Civil works, not exceeding 25% of total amount. -as seed money kept in a corpus, not exceeding 50%. -procurement of equipment and machinery. -any other activity related to upgradation. • Any deviation from above pattern to be approved by NSC. • Funds cannot be invested in shares, bonds or any other securities.

  13. Key Performance Indicators (KPIs) KPIs to be set as targets for next five years against baseline information KPIs for internal efficiency of ITI - % of applications received v/s number of seats - % of enrolment v/s no of seats - % dropout rate - % pass out rate KPI for external efficiency - % of passed out students employed/self-employed. - average salary/income of passed out students.

  14. Monitoring Mechanism IMC to submit quarterly report about implementation to SSC. SSC to compile quarterly report for the State and submit to NSC. In case of unsatisfactory performance v/s target KPIs, IMC to send report to SSC. SSC to forward report to NSC with its comments. NSC to fix responsibility and take corrective action.

  15. Steps to be taken for operationalisation of the Scheme for 2007-08 • States to: • finaliseITIs and IPs for 2007-08 if not done till now. • constitute/reconstitute IMCs as per new composition. • register IMCs as Societies. • constitute SSCs(if not constituted ) and SICs. • delegate financial and academic powers to IMCs as provided in MoU.

  16. Steps to be taken for operationalisation of the Scheme for 2007-08 Memorandum of Agreement to be signed among the Stake holders. IMC to open bank account in public sector bank. IMCs to develop IDPs and send to SSC. SSC to approve the IDPs and forward to Central Govt. (NIC). Interest free loan to be released to the IMC on the basis of the IDPs. Upgradation process to be undertaken and courses to be started in upgraded facilities from August, 2008.

  17. Thank you

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