18/10/2008PHD Task Force on Skill Development1 SKILL DEVELOPMENT Bridging Skills Deficit & Promoting Employability PHD Chamber Task Force on Skill Development Sushma Berlia, Chairperson PHD Chamber Chief Secretaries’ Summit 18 October 2008, PHD House, New Delhi

PHD Task Force on Skill Development2 18/10/2008 Skill Development: Targets To create 500 million certified and skilled technicians by 2020 How to Invest adequately in their education and employability As envisaged in the 11th Plan:  Impart relevant skills to 10 million people annually  Create 70 million new jobs and gain industry support for the same Addressing employability issues imperative for inclusive growth

PHD Task Force on Skill Development3 18/10/2008 Current Scenario India has the largest share of young population in the world  65 percent in the age group of 15-29, (youngest country)  400 plus million work-force  Widespread unemployment even among the educated, while economy faces shortage of skilled workforce  Only 5 percent of our work force is vocationally trained  ITIs run courses only for 8th standard pass and above  Between class 1st - 8th, about 50 percent students drop out  Lack of access to vocational training for people entering the informal sector

PHD Task Force on Skill Development4 18/10/2008 Skill Development - Challenges Acute shortage of Skill Development institutions/ Infrastructure Poor bankability of the skills due to poor training, resulting in low employability of trainees. Dis-connect between skills provided and skills required by the industry. Outdated training modules Outdated and inadequate machineries, tools and technology. Number and type of courses available are quite inadequate Skill demands of the service as well as the organized sector remains largely unmet. Severe shortage of trained instructors

PHD Task Force on Skill Development5 18/10/2008 Key Governance Principals Enable individuals to convert their knowledge and skills, through testing and certification, into higher diplomas and degrees. Promote multiple modes of delivery that can respond to the differing situations in various states. Certification system to be instituted by Govt. (Central & State) for certifying the skills of trainees graduating from public and private institutions. Encourage Testing the skills of trainees by independent assessing bodies.

PHD Task Force on Skill Development6 18/10/2008 Recent National Level Institutional Arrangement National Council on Skill Development to review and focus on policy direction by:  Setting vision, and  laying down core strategies National Skill Development Coordination Board to:  Coordinate action for skill development in Public and Pvt. sectors  Ensure that govt. agencies intensify actions for: vocational education technical training through ITIs, and through promotion of public-private partnerships National Skill Development Corporation, to  promote skill development in the private sector

PHD Task Force on Skill Development7 18/10/2008 REAL ACTION LIES WITH THE STATES

PHD Task Force on Skill Development8 18/10/2008 Recommended Initiatives Investments in Skill Development Invest adequately in education and training; Enhance budgetary allocations; Timely availability of funds to the concerned Departments in State Govt. for upgradation of ITIs.

PHD Task Force on Skill Development9 18/10/2008 Financial Support for Skill Development Tax incentives for setting up ITIs and ITCs Provision of Liberal Loans for setting up ITIs/ITCs Bankable investment Land on subsidized rates for setting up new ITIs. Bank Loans for Funding Education Bank Loans to students for self Employment projects

PHD Task Force on Skill Development10 18/10/2008 Capacity Building Focus on capacity building in the State Governments. Identify skills needed domestically and globally for designing new courses and setting up new institutes Promote bankability of skills by proper designing of programmes. lay down appropriate standards of training for various trades. Focus on adequate availability of well trained faculty/ trainers/ instructors.

PHD Task Force on Skill Development11 18/10/2008 Capacity Building (Continued) Retraining of trainers and their regular exposure to industry for updating training standards Independent assessing bodies for testing skills. Encourage double shifts in ITIs The present seating capacity in ITIs is estimated at 7.5 lakhs Efforts to increase it to 10 lakh by running an additional shift in existing ITIs wherever possible.

PHD Task Force on Skill Development12 18/10/2008 Promote and Strengthen PPP model Address the evolving role of PPPs in skill development services Create enabling environment that would improve predictability and mitigate risks for PPPs Create appropriate institutional mechanism Simplified Process and Procedures to facilitate and encourage Private sector participation Design the framework and detailed modalities to enable PPPs in skill development services

PHD Task Force on Skill Development13 18/10/2008 Strengthen Industry Participation Enhance role of Chambers of Commerce/ Industry Associations Foster suitable industry partnerships for revamping ITIs Establish and strengthen Institute Management Committees in all ITIs/ ITCs Encourage Alternative Private initiative – even if commercial in nature To address constraints experienced in institutionalizing PPPs  Public sector not to view private sector as an external variable  Investments need to be supported by business plans and revenue models  Allow key role in decision making to employers to encourage their whole-hearted participation

PHD Task Force on Skill Development14 18/10/2008 Policy Initiative Set up State Level Skill Development Missions Promote multiple modes of delivery Make available buildings of public educational institutions for imparting skill development programmes Motivating availability of Private educational Institutions Sensitization and Awareness across departments and at grass root level

PHD Task Force on Skill Development15 18/10/2008 POINTS FOR DELIBERATIONS State-wise implementation agenda and action plan for skill development in the 11th Plan State-wise policy framework and institutional arrangements for:  Setting up of new institutes for accelerated skill development  Facilitating multiple modes of delivery  Revamping ITIs through PPPs  Initiatives under Modular Employable Skills Scheme  Promoting private investment in skill development Preparedness of States to transfer policy initiatives into practice and challenges in this task Sharing recent experiences in skill development - best Practices/ PPP success stories Implementation of the PM’s recent suggestions to the Chief Ministers of all States

PHD Task Force on Skill Development16 18/10/2008 Thank You