Cabinet nod to Rs 550-cr skill upgrade programme

In a move that would help in employment generation and enable growth in basic infrastructure, the Cabinet Committee on Economic Affairs (CCEA) today approved the proposal for implementation of the skill development initiative at a total cost of Rs 550 crore.

The initiative is part of the UPA government's move to sustain high levels of economic growth, by creating a reservoir of skilled and trained manpower, which is in short supply in a number of key sectors.

"The scheme will provide training to those students who have passed class 10, existing workers and industrial training institutes' (ITIs) graduates to improve their employability by utilising the infrastructure available in government and private institutions and industry," Minister for Information and Broadcasting Priya Ranjan Dasmunsi told reporters.

Under the scheme, in the next five years one million individuals above 15 will be trained by vocational training providers. Candidates will also be given lessons to enhance their existing skills through certification," Dasmunsi said.

Finance Minister P Chidambaram in Budget 2007-08 had proposed to upgrade 1,396 ITIs into centres of excellence in specific trades and skills under public-private partnership.

He said, "Under the proposed scheme, the state government, as the owner of the ITI, will continue to regulate admissions and fees; the new management will be given academic and financial autonomy; and the central government will provide financial assistance by way of seed money. ITIs will be encouraged to start a second shift. Once a tripartite MoU is signed among the three stakeholders, I propose to grant an interest-free loan up to Rs 2.5 crore to each ITI for upgrade and revision of courses".

Outgoing president of the Confederation of Indian Industry R Seshasayee said, "China reportedly has 5,00,000 ITIs compared with 5,000 in India. He added that in India only 105 skills are recognised and taught while overseas, nearly 3,000 different skills are imparted. Seshasayee further said there was a need to set up 50,000 ITIs in five years time to impart global quality skills.

About 200 modules for employable skills as per the industry and labour market demands would be identified and the course curriculum developed, a note circulated after the CCEA meeting said.

To begin with, 1,896 government industrial training institutes (ITIs) and 3,218 private training centres affiliated to the National Council for Vocational Training would be eligible to participate in the scheme as vocational training providers.

The Cabinet also approved exemption of all types of textiles and textile machinery from the textile committee cess as part of the efforts to make exports competitive, Dasmunsi said.

In January, the central government withdrew the cess on ready-made garments, but retained it on other textile items. "The exemption of cess will rationalise the tax burden on the textile sector in the changed scenario of global competitiveness," he added.