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June 24, 2017

Maharashtra Govt. withdrawn “ITI Adoption Policy”, center to also revisit and study loopholes : K P Krishnan, Secretary, MSDE


New Delhi : The centre has decided to revisit its policy of adoption of industrial training institutes (ITIs) by the private sector industrial units.

Following the footsteps of Maharashtra state government that has withdrawn the policy of handing over of ITIs to industrial units for running these institutions and training the students, the union skill development ministry is seriously studying the loopholes in the policy.

Most of India’s major manufacturing giants have adopted and been running about 1200 ITIs in the country since 2007.

The centre government in 2007 had rolled out a scheme allowing industrial units of repute to adopt ITIs to get the trainees exposed to the latest technological knowhow and better their employment prospects.

These companies not only add infrastructure and equipment to the ITI they adopt but also tweak the curriculum according to the industry needs. Even instructors who are deputed by the government are exposed to the latest technological advancements prevalent in the industry. It works in the larger interest of the industry also as its gets the talent pool of its choice which otherwise ITIs cannot generate on its own.

As many as 1396 ITIs were earmarked for the scheme under which the industrial unit would get Rs. 2.5 crore interest-free loan for sprucing up the ITI infrastructure. India has a total of about 13,000 ITIs.

Industry too had welcomed the scheme as it could produce the workforce according to their needs by tweaking the curriculum to meet their requirements. The ITI’s infrastructure including equipment is not up to the mark to keep pace with technological advancements in the industry.

“We are revisiting the policy of handing over of it is to private players. Maharashtra government that had done it earlier but it had withdrawn this policy formally. My team is studying the loopholes in the policy”, said K P Krishnan, Secretary, Ministry of Skill Development and Entrepreneurship .

Krishnan said that though private sector connect with ITIs was an absolute necessity as it helped in finding what industry needs and produce the workforce it will employ without which the whole purpose of training the youth is a waste.

“But tax payers may raise the issue and ask why government set up ITIs with huge capital investment but hand these over to private players. We definitely want industry connect but do not want to abdicate too. If they (industry) want to produce their own people, they can have their own set up,” the secretary said.

Krishnan said that the methods were being explored to how to maintain industry connect with ITIs without handing over infrastructure to it. He said, “We would soon reach out to industry to get their feedback in terms of what it wants.”

However, apex industry body the confederation of Indian industries (CII) the member companies of which have adopted 398 ITIs, is not amused with the idea of revisit of the handing over policy.

CII has expressed its concern on the potential effect on the job prospects of the trainees if adoption policy is withdrawn by the government.

“The industrial units that adopt the ITIs help the trainees not only with training on advanced technological advancements but also add up to the infrastructure of these institutions. The trainees of such ITIs stand better change of being absorbed in these companies and at better remunerations. In fact, we had conducted an impact study of select 100 ITIs in 2013 and found that this was a very good idea to handover ITIs to industrial units for running the same,” said a senior CII functionary who preferred not to be identified.

This CII official said that the impact study was also handed over to the central government and many of the recommendations of this study were implemented also.

Note: News shared for public awareness with reference from the information provided at online news portals.

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