Center pledges 560 crores to State Governments to promote demand-driven, industry linked skill development


Collaboration with 22 organizations to provide apprenticeship training opportunities to 2.5 lac + youth;
Government to ensure standardized assessment system
Detailed discussions with States on Vision 2025
Extensive focus on promoting Apprenticeship training; Launches pilot programme to give incentives to TPAs (Third Party Aggregators) to further expand program

On behalf of the Ministry of Skill Development and Entrepreneurship (MSDE), UnionMinister Dr. Mahendra Nath Pandey today announced the Center’s commitment of INR 560 crores to the State Governments to promote demand-driven, industry linked skill development at the ground level.

The announcement was made by the Hon’ble Minister at the Annual National Conference of State Ministers held in New Delhi, today which also saw the commencement of the ‘Apprenticeship Pakhwada’, a 15-day event aimed at driving widespread awareness of the Apprenticeship. The event witnessed collaboration with 22 organizations to provide apprenticeship training opportunities to more than 2.5 lakh youth in the country.

This annual conference acts as a platform for the stakeholders of the various skilling schemes across the country, especially state government skill ministers to meet and discuss various issues affecting the skilling efforts in their states. The event saw more than 80 representatives across States participating in the conference namely –

Addressing the States on their collaboration on Skill Development, Dr. Mahendra Nath Pandey said, “Skill development is a demand-driven subject and thus it is important that we give more power to the States to ensure quality and market relevant outcome. It is important that we map and strike a balance between the traditional and new age skills, right at the district level and also target a shift from un-organized to the organized market through our Recognition of Prior Learning (RPL) program.”

“The States should ensure integration of skills right at the school level so that the youth can decide which skills to hone. At the University level, we should promote apprenticeship training as part the regular degree courses, since on-the-job training is the pre-requisite for any job,”he further added.

The Hon’ble Minister said that the government, both at the Center and the State level, should work towards a common standardized assessment system. “We should promote those who are contributing with quality outcome and discourage every sort of corruption.”

The event also saw detailed discussion on Vision 2025 of Skill India and the direction that the Ministry and State Governments should take. “It is imperative that the Central and the State Governments work closely with each other to ensure that we meet our Vision 2025”, he said.

Giving a direction to States, Shri R.K Singh, Minister of State for Skill Development and Entrepreneurship said, “Our focus should be on secondary and tertiary sectors than primary sectors for jobs opportunities now; and on the local demands for goods and services than on global ones. States should consistently undertake environmental scan for market relevant skills. We should ensure our alignment to jobs of the future so that India has a competitive advantage. It is also important that our trainers are upgraded consistently to latest curriculum and our infrastructure should be of global standards focusing quality delivery.”

The event also listed the recent amendmentsin Apprenticeship Act with an objective to increase linkage with more companies and industries. As a crucial support from MSDE, incentives to Third Party Aggregators (TPAs)was also announced to strengthen the bond with several stakeholders andaspiring youth to achieve the set target of engaging 10 lac apprentices during current financial year. The event also witnessed felicitation of industries with more than 3000 apprenticeseach and award distribution to winners of All India Competition of Apprenticeships held by Directorate General of Training.

The inaugural session of the conference commenced with the Ministry talking about its achievements so far and also highlighting new initiatives that have been rolled out to further boost the government’s vision of skilled workforce. Close to 80 lakh youth have been skilled under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) since its launch in 2015. More than 28 lakh youth have been oriented under Recognition of Prior Learning Program, an initiative under PMKVY bringing about a major shift from the unorganized to the organized economy. MSDE has more than 25000+ institutes and centers today delivering more than 3000+ courses across 37 sectors in the country. These include the state-of-the-art 629 Pradhan Mantri Kaushal Kendras (PMKK); targeting one center in each district of the country.

Comprehensive reforms in Apprenticeship rules 1962 have been approved in the 36th CAC meeting held on 10th July, 2019 and had been sent for Gazette notification to further streamline the process. Major reforms include:

Upper limit for engaging apprentices increased from 10% to 15%
Size limit of an establishment with mandatory obligation to engage apprentices lowered from 40 to 30
Payment of stipend for 1st year has been fixed rather than linking it to minimum wages, 10% to 15% hike in stipend for 2nd and 3rd year to apprentice
Duration of apprenticeship training for optional trade can be from 6 months to 36 months

MSDE signed MoUs with states with mutual consent on achieving particular apprenticeship numbers to further reinforceMSDE’s association with state Industries and apprentices.The role of state governments is crucial because as per the Act, all apprenticeship in the private sector, State PSUs and state government departments are to be regulated and closely monitored by the respective state government. A significant potential area for promoting apprenticeships, particularly in MSMEs and informal sector are under the jurisdiction of state, which remain untouched. The Ministry’s MoU singing with the states shows itscommitment for expansion of outreach of apprenticeship training to maximum number of industries as well as aspirants.

The platform was additionally utilized to felicitate industry partners and other stakeholders to recognize and appreciate their indispensable contribution in consolidation of the ecosystem. The ministry also presented its vision document for 2020-2025.Reform of the Indian skills development system is proceeding swiftly with substantial change underway and more planned in many key areas, to make the supply of skills completely aligned with the growing demands of the Indian economy.

Apprenticeship has been recognized as an effective way to empower young people tosmoothly shift from school & college to work whilst at the same time improving links between industry and training institutions. The National Apprenticeship Programme plays a large part in the task of up-skilling India’s workforce, offering the opportunity to share costs among different parties (employers, individuals and the government) and to involve governments, employers and workers in partnership. Apprenticeship is a win-win situation both for industry and youth in coming together to help make the vision of ‘Skilled India’ a reality in future.

During the Pakhwada period, the ministry will hold a number of workshops and seminars across major centres in the states with the aim of creating wider awareness about the Apprenticeship Training amongst establishments and employers across manufacturing and service sectors. These will include all stakeholders including SSCs, industry partners, state governments, industry associations, third party aggregators and line ministry in various parts of the country.

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