ITI reform on fast track: FM

Union Finance Minister P Chidambaram today assured a fast-track approach to the re-structuring of Industrial Training Institutes (ITIs) in a meeting with the industry associations.

Chidambaram, who had a closed door meeting with industry representatives like Sunil Kant Munjal, CII president, N Srinivasan, CII director general, Onkar Singh Kanwar, Ficci president, Amit Mitra, Ficci secretary general, M K Sanghi, Assocham president, Rakesh Mohan, finance secretary and K M Shahani, labour secretary, has asked Shahani to draft a blue print in next couple of weeks to facilitate the chambers in adopting 100 ITIs across India.

"Both finance ministry and labour ministry are keen to integrate local industry with the management of ITIs. The ministries have suggested forming Institute Managing Committees (IMC) which can be chaired by an industrialist in the area," Kanwar told Business Standard.

The labour ministry will also work out the financing model for the ITIs. There are about 4,200 ITIs and government has identified 100 of these for upgradation with a budget of Rs 2 crore per ITI.

At present, 14 states have given clearance for re-structuring of the ITIs.

"The central government has earmarked Rs 1.2 crore for the ITIs, while the state governments will give Rs 40 lakh and another Rs 40 lakh has to be given by the industries. However, the ministries and the Planning Commission are yet to finalise," M K Sanghi, Assocham president said.

The labour ministry will meet the Cabinet Committee on Economic Affairs (CCEA) with the suggestions on February 23.

In last few months, the chambers have been strongly opposing reservation in private sector and have been pitching for development of ITIs to improve the vocational skills of labour to make them more competitive.

CII had suggested special training programmes and ITI cluster model. It had also tied up with organisations like City and Guilds Institute to give training to youths and has set up Foundation od Arts and Crafts Enterprises Skill (FACES) to help people develop skills in handicrafts and weaving

Ficci, on the other hand, had presented papers to the government to improve check fallout rates in the ITIs. It has also cited example of US where companies are given tax incentives for providing technical training to minorities.

Ficci today told the government officials that the curriculum change should be based on a 40:60 model where 40 per cent is on the shop floor and 60 per cent is theoretical. And the industry through the management committee should take responsibility for offering apprenticeship.