Skills upgrade gets a mention, little else

BUDGET & AAM ADMI

Focus on making ITIs the centres of excellence.

The National Rural Employment Guarantee Programme has been extended to another 130 districts but the increase in allocation in the Budget has been marginal.

A total allocation of Rs 12,000 crore has been made, which is up from the previous year's Rs 11,300 crore when the programme was implemented in 200 districts.

This year's Budget also allocates Rs 1,800 crore for creation of one lakh jobs for differently-abled persons. A salary ceiling of Rs 25,000 per month will be applicable on such jobs that will be created, the FM said.

The Budget has an allocation of Rs 2,800 crore for the Sampoorna Gramin Rozgar Yojana (SGRY) for rural employment in the districts not covered by the NREGP. The allocation for the self employment programme of Swarnajayanti Gram Swarozgar Yojana (SGSY) for 2007-08 will be Rs 1,800 crore, which is up by Rs 800 crore.

Keeping in view the demand for technicians and skilled labour in the country, Chidambaram proposed that 1,396 Industrial Training Institutes (ITIs) would be upgraded into "centres of excellence" in specific trades and skills under public-private partnership (PPP).

Under the proposed scheme, while the state governments as owners of the ITI, will continue to regulate admission and fees, the new management under PPP will be given the academic and financial autonomy. The central government would provide financial assistance by way of seed money.

An interest free loan of Rs 2.5 crore has been proposed to be granted to each ITI for upgradation and revision of courses.

While requesting the cooperation of state governments in upgrading at least 300 ITIs every year from 2007-08 under the PPP model, the finance minister stated that Rs 750 crore have been allocated for the purpose.