The decision was taken at a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here.
The scheme will cover the entire value chain of textiles, excluding spinning and weaving in the organised sector.
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Around 10 lakh people are expected to be skilled and certified in various segments of the textile sector through the scheme, out of which 1 lakh will be in traditional sectors, an official statement said.
At least 70 per cent of the certified trainees are to be placed in the wage employment and post-placement tracking will be mandatory under the scheme, it added.
"The Cabinet approves a new skill development scheme covering the entire value chain of the textile sector excluding Spinning & Weaving in the organised sector, titled 'Scheme for Capacity Building', the statement said.
The scheme will have National Skill Qualification Framework compliant training courses with funding norms as per the Common Norms notified by the Ministry of Skill Development and Entrepreneurship.
The objectives of the scheme are to provide demand driven, placement-oriented skilling programme to incentivise the efforts of the industry in creating jobs in the organised textile and related sectors, it said.
The scheme is aimed at promoting skilling and skill up-gradation in the traditional sectors through the Ministry of Textiles and providing livelihood to all sections of the society across the country.
The skilling programmes would be implemented through textile industry/units in order to meet the in-house requirement of manpower.
It will also be rolled out through reputed training institutions relevant to textile sector having placement tie- ups with textile industry or units, and institutions of the Ministry of Textiles or state governments having placement tie-ups with textile industry or units.
Under the scheme, job role wise skilling targets will be based on skill gap identified for various levels including entry-level courses, up-skilling/re-skilling (supervisor, managerial training, advanced courses for adapting technology etc), recognition of prior learning (RPL).
Moreover, segment/job role wise requirement of skill needs will be assessed from time to time in consultation with the industry.
Web-based monitoring will be adopted for steering every aspect of implementation of the programme.
The skilling requirement in the traditional sectors such as handlooms, handicrafts, jute, silk etc will be considered as special projects through respective sectoral divisions/ organisations.
Skill upgradation will be supported further for entrepreneurial development through provision of MUDRA loans.
The scheme will be implemented for the benefit of all sections of the society across the country including rural, remote, LWE affected, North East, J&K by imparting skills in the identified job roles.
Preference will be given to various social groups, SC, ST, differently abled, minorities and other vulnerable groups.
Under previous scheme of skill development implemented by the Ministry of Textiles in the XII Plan period, more than 10 lakh people have been trained of which more than 70 per cent were women.
"Considering that the apparel industry, a major segment to be covered under the scheme, employs majorly women (about 70 per cent), the trend is likely to be continued in the new scheme," said the statement.