ITI upgradation scheme to be launched in January, says skill ministry

The finance ministry has provided Rs 1,000 crore for the scheme in the current fiscal year

The new Industrial Training Institutes (ITIs) upgradation scheme announced in the financial year 2024-2025 (FY25) Budget is likely to be launched in January next year after approval by the Union Cabinet, the skill ministry told the Parliamentary Panel on Labour and Employment.

 

Moreover, the skill ministry has also urged the finance ministry to pare down allocation for the scheme for FY25 by more than two-third to Rs 294 crore in the revised estimates (RE), citing limited time availability in the current financial year.

 

The finance ministry has provided Rs 1,000 crore for the scheme in the current financial year.

 

“The [new] scheme is yet under formulation. Till then, the department of expenditure has permitted spending up to Rs 10 crore for preparatory activities. The scheme is likely to be launched in January 2025. Given the time available thereafter, the RE (revised estimate) has been reduced to Rs 294.00 crore, which is, however, subject to the approval of the scheme by December 2024,” the latest report by the House panel noted the skill ministry's response to a query posted by it.

 

 

Announced by Finance Minister Nirmala Sitharaman in the Union Budget in July, the Rs 60,000 crore scheme aims to upgrade 1,000 ITIs in a hub and spoke model in the next five years. The scheme aims to skill over 2 million students. The central government will contribute Rs 30,000 crore and state governments will contribute Rs 20,000 crore along with Rs 10,000 crore by the industry that also includes corporate social responsibility (CSR) funding.

 

In its response to furnish details regarding major components of the new scheme and how its implementation would be different from the earlier schemes, the ministry informed the House panel that the scheme will adopt a challenge method for selecting ITIs, ensuring state participation, industry collaboration and an outcome-driven implementation strategy, making it distinct from previous efforts to improve the ITI ecosystem.

 

“The financial assistance provided under various schemes in the past was suboptimal to cover the entire upgradation needs of the ITIs to meet the growing investment requirements for infrastructure upkeep, capacity expansion, and the introduction of capital-intensive new-age trades. For the first time, the role of the industry will be measured in quantifiable terms, which will help the ITIs,” the ministry further added.

 

Commenting on the “challenge method” being employed for selecting the ITIs, the ministry said that it is conducting necessary consultations with various stakeholders to develop the scheme guidelines, including the details of the challenge method for selection of ITIs. The guidelines will include screening and prioritisation criteria and will be publicly available.

 

The new ITI upgradation scheme has faced considerable delay in its launch with only a quarter to go before FY25 ends.

  “The committee, while appreciating the efforts being made to prepare detailed guidelines and pursuing for necessary approval of the scheme, expect that the necessary approval will be accorded soon and the ministry will be able to utilise the reduced RE during the remaining part of 2024-25,” the House panel concluded.