"Such a move will empower the NCVT (National Council for Vocational Training) to not only enforce the norms set by it for vocational training in the country but also help it to ensure compliance and act against the alleged defaulters, apart from adding further credibility to the skill training by ITIs," said the Standing Committee on Labour in its report.
At present, there are nearly 14,000 ITIs in the country, both public as well as private, and their numbers are on the rise.
The panel also suggested that the star rating system should not be left to be voluntarily adopted by ITIs but made applicable on all of them to improve the quality of skill training.
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The Ministry of Skill Development and Entrepreneurship began grading the industrial training institutes across the country by giving them star ratings based on their facilities, performance and placement record last year.
The government's vocational training programmes are administered by ITIs, which cater to about 36 per cent of the 7 million people enrolled in various training programmes in India.
The evaluation is done in two phases, a self-appraisal followed by an in-depth assessment by the Directorate General of Training, the umbrella body overseeing the functioning of ITIs and other training institutes.
Significantly, the NCVT recognition is withdrawn from ITIs opting out of the grading procedure and their certificates bear "ungraded ITI", thereby lowering the employment prospects of students studying in these institutes.
On the other hand, ITIs which opt for grading and secure a rating of 3-star and above can avail a host of benefits. Such ITIs are eligible to receive financial support under the government's schemes, including those funded through World Bank assistance, and their principals and instructors will be trained in central institutes in India and abroad.
The panel suggested giving statutory powers to the NCVT to allow it to function as the regulator for skill education, on the lines of bodies like the University Grants Commission (UGC) and the All India Council for Technical Education (AICTE).