Upgradation of 1396 ITI’s into Centers of Excellence through Public Private Partnership National Conference on Skill Building through Public Private Partnership 5 – 6 th October 2007 Col. Harmit Singh Sethi Director & Head - Skills Initiative

Presentation Outline ITI/ITC scenario in India The Scheme Contributions & Benefits for the Industry Participation of CII members Way Forward

ITI/ITC – Capacity in India ITI’sITC’sTotal No. of Institutions Total Capacity 396,712341,386738,098 Population (in Million) 1,027 Source: DGET, January 2005

Issues Limited or no avenues open for ITI graduates for further education. High rates of Un-employment – why??? –Limited demand in manufacturing sector – majority of courses in ITI in manufacturing. –Mismatch between skills attained & those in – demand. –Obsolete & poor quality courses.

Employers’ perception Employer’s dissatisfied with ITI graduates. ITI pass outs lack even basic understanding of their trades. Rapid Technological developments call for course content modification. Many trades have lost relevance due to automation. Focus should be more on Service Sector skills Multi- skilling & Multi – operations required. Source: World Bank

Thus…

The Scheme Upgradation of 1396 Government Industrial Training Institutes (ITI’s) into ‘Centres of Excellence’ (COE) through Public Private Partnership (PPP).

Parties First Party Director General / Joint secretary, Ministry of Labour & Employment, Government of India Second Party Secretary / Principal Secretary, State/UT Third Party Industry Partner The MOU shall be signed between the Three Parties for each ITI.

Roles of the First Party Provide interest free loan of up to Rs 2.5 crores to the Institute Management Committee (IMC) of the ITI based upon the Institute Development Plan (IDP). Establish a National Steering Committee - an Apex body for guiding the implementation and monitoring of ‘THE SCHEME’. SECTION A of The Draft MOU

Role of the Second Party Establish a State Steering Committee. Establish and maintain a State Project Implementation Unit Constitute/reconstitute an Institute Management Committee (IMC) in the ITI and register it as a Society under the relevant Societies Registration Act Encourage and provide all assistance to THE IMC to establish training-cum-production center As the owner of the ITI, continue to regulate admissions and fees. Continue to have administrative control over the staff of THE ITI and pay their salary and other emoluments. SECTION B of The Draft MOU

Role of the Third Party Nominate a representative as a member of THE IMC to act as Chairperson of the same. Nominate four other members from the local industries in such a way that THE IMC becomes broad based. Contribute in terms of machinery and equipment. Arrange to provide training to the faculty members and on the job training to the students. SECTION C of The Draft MOU

Monitoring Mechanism All stakeholders responsible for monitoring & implementation of the scheme. Parties to jointly agree and finalize Key Performance Indicators (KPIs) as yearly targets for next five years. THE IMC to develop monitoring mechanism to review the performance and submit quarterly reports to THE SSC. THE SSC to monitor the implementation and furnish a consolidated report to THE NSC every Quarter for all the ITIs being upgraded in the State. SECTION D of The Draft MOU

The IMC Members Functions Memorandum of Agreement Rules & Regulations of Society Industry’s Concerns

IMC - Members A total of 11 members Chairperson - Representative of the Third Party, Nominated by the Third Party. Four other members from local Industries. Nominated by the Third Party. Five representatives nominated by Second party. The Principal of the ITI, as member secretary. SECTION B (3) of The Draft MOU

IMC - Functions i.Forecast emerging skill requirements in the region and accordingly take the following actions: a.Suggest further strengthening in respect of various courses presently being run as required locally. b.Add new trades/units with the concurrence of relevant State/UT and national authorities and/or abolish trades that are redundant or irrelevant to the local industry needs. ii.Start short-term training courses; iii.Review training needs and approve training of instructors, and of administrative/office staff; SECTION B (4) of The Draft MOU

IMC - Functions iv.facilitate placement of ITI graduates; v.generate, retain and utilize the revenue; and vi.appoint contract faculty as per need. vii.make recommendations to THE SECOND PARTY on the funds provided by it to THE ITI out of its Annual Budget. viii.make expenditure out of the interest free loan received from THE FIRST PARTY under THE SCHEME. SECTION B (4) of The Draft MOU Further details in Memorandum of Association

Memorandum of Association Key Features –IMC registered as a Society. –Details the Aims & Objectives of the Society –Details Objects for achieving the above –Income & property of Society –Governing Council –Elaborate Rules & Regulations for the functioning of the society.

Contribution of the Industry Provide Consultancy / Advisory services. Innovate & Upgrade the ITI - curriculum, infrastructure, faculty, Placement Cell in the ITI Network, Interact, Establish & maintain working relations with other institutes. Introduce quality component in skills delivery. Partner with local Industry, exchanges, banks & Government organizations.

Contribution of the Industry Share expertise Provide on-the-job training Provide inputs to the IMC for generating funds Provide info on the latest equipment & machinery that can be used for training. Encourage Competitiveness by preparing candidates for the Regional & National Skills competitions. Generate funds for re-payment of the loan.

Benefits to the Industry Customized training for potential manpower. Contributing towards enhancing Employability & Quality of workforce. Ready pool of workers for use by Industry – self or vendors. Great networking opportunity with State / Central Government, Industry, International organizations, etc. Delivery of Social Responsibility. Branding for the Company leading to enhanced acceptability.

CII Members’ participation in the ITI up-gradation scheme

Region wise response REGIONNUMBER of ITI’s NR49 ER20 SR46 WR32 TOTAL147*

State-wise list of ITI’s SNSTATENo.s 1Punjab8 2Himachal Pradesh8 3Rajasthan7 4UP18 5Delhi2 6Haryana5 7Uttrakhand1 TOTAL49

State-wise list of ITI’s SNSTATENo.s 1Maharashtra21 2Gujarat6 3Madhya Pradesh5 TOTAL32

State-wise list of ITI’s SNSTATENo.s 1West Bengal5 2Jharkhand6 3Bihar6 4Orissa3 TOTAL20

State-wise list of ITI’s SNSTATENo.s 1 Karnataka 21 2 Tamil Nadu 8 3 Andhra Pradesh 17 TOTAL46

Comments of members on the Draft MOU

Comments on the Draft MOU Financial Implication: The MOU needs to mention that re-payment shall not be the liability of any individual member and that the society/IMC shall be collectively responsible for the same. Necessary guidelines may be appended as an annexure.

Comments on the Draft MOU It is also observed that the clause on independent assessments has been removed. CII is of the view that to ensure quality & competitiveness and to deliver standardized training, Independent assessment be a part of the MOU. The IMC should be provided complete autonomy for the laying down of curriculum & ensuring discipline of the staff.

Comments on the Memorandum of Association Name of the IMC: To prefix the name/ brand of the industry partner to ' ITI ‘. The addition of such name/ brand will add value to students who pass out from the institute. Add to the rules: –Add New Programs for which there are employment opportunities. –Modify Programs to meet industry/service employment needs –Delete Programs for which there are limited employment opportunities

WAY FORWARD…

Way Forward… Through this Scheme prepare candidates for the WorldSkills International Competition.WorldSkills International Competition Utilize Industry’s expertise in Skills Development. Provide Globally Benchmarked & Quality Controlled training. Through the Centers of Excellence provide to the Ageing world what they need the most – A Productive Workforce.

Way Forward… Skills Development Enhance Curriculum Development at Benchmarked Standards. Focus on Teachers Training. Keeping the India’s Demographic Advantage in view, encourage policy to Export Skilled Manpower to meet Global requirements. Regulatory framework for Private providers of training. Creating a Training / Skills Fund.

Way Forward… Monitoring and Evaluation (developing labour market information system to assess trends, identify emerging sectors, and skill requirements. Introduce the system of “Awarding Bodies” i.e. the Testing and Certification Authority – which are independent and not involved in the conduct of training programmes. These bodies develop standards for assessment through research. Quality Control

Thus… This is the first step towards structuring Public Private Partnership in Skills Development… Aviation, Telecom, IT have proved that success can be achieved through PPP and encouraging competition for Quality. The Next success story needs to come from developing Human Resources… By, Building People Building India HOW ? ??

THANK YOU

For details contact CII Skills Initiative Confederation of Indian Industry Plot No. 249-F, Sector 18, Udyog Vihar, Phase IV Gurgaon , Haryana, India Phone: Fax:

WorldSkills International Promoting Skills Across the World

Membership to WorldSkills International  On 20 th January 2007 India became 48 th Member of WorldSkills International.  CII will set up “WorldSkills India” to represent and coordinate all its activities.  To broad base India’s participation, CII is looking for credible partners.

Some Other Members Countries Austria Australia Belgium Brazil Canada Denmark Estonia Finland Germany Hungary Hong Kong Iran Ireland Japan Korea Mexico Malaysia Netherlands Portugal UAE USA UK

What is WorldSkills? A not for profit membership association open to agencies or bodies which have a responsibility for promoting vocational education and training in their respective countries/regions. WorldSkills operates worldwide and is politically and denominationally neutral. WorldSkills provides a unique means of exchange and comparison of world-class competency standards in the industrial trades and service sectors of the global economy.

WorldSkills….. A Movement  WorldSkills like the Olympics is a Movement.  Every participant in every country,whether or not he reaches the top, is a winner – A winner in the race of “livelihood opportunity”  The experience and results of all the competitions provide valuable feedback to the individuals, the systems and enterprises in which they are being trained  The competitions are particularly effective in the context of providing positive career role models for school aged youngsters.

WorldSkills Competitions: 8-22 Nov 2007, Japan 39 th Competition 850 Competitors 47 Skills Categories 200,000 Visitors expected

CII road map to WorldSkills Competition : Mission and Observers Team went to Australia in CII addressed the “Leaders Form” in Melbourne. Next - participate in Japan WorldSkills Competitions 2007 and related events : Conduct Regional and National Skills Competitions with a view to prepare full contingent for next two WorldSkills Competitions : Participate with full contingent in all skills categories. 2012: Conduct Regional and National Competitions and prepare to host 2013 competitions in India. 2013: Host WorldSkills Competition.