Apprenticeship : Half Way house ?

 

Context :

India: Govt eases apprenticeship rules for India Inc  /  Eco Times  /  04 March 2022

Extract :

The government has simplified half-a-dozen procedures for India Inc to incentivise them to take on apprenticeship training in a big way, a move aimed at doubling the number of apprentices in India from nearly 0.5 million now to 1.0 million by the end of 2022 .

Some of the big-ticket changes include doing away with stipend payment proof from industry if the payment is made to the candidate though a payment gateway, a senior government official told ET.

Besides, the clause for holding back the stipend payment to the industry in the last quarter until a candidate appears for assessment has also been removed, enabling seamless flow of funds to the industry to undertake apprenticeship training.

Further, establishments with businesses in four or more states will no longer have to register at multiple locations and stipend support will be given to the industry during the basic training period too.

The government reimburses up to Rs 7,500 per apprentice to industry and a 25% or a maximum of Rs 1,500 as stipend for each candidate per month under the National Apprenticeship Promotion Scheme.

India’s current apprenticeship scheme allows 2.5-15% of the organizations’ total workforce to be apprentices and firms with 30 or more employees need to mandatorily hire apprentices.

The renewed focus on apprenticeship has come after the government fell short of its target of training five million apprentices in the country under the National Apprenticeship Promotion Scheme launched in 2016. The target was set for a period of five years. Even at 0.47 million, the number of apprentices in India is miniscule compared to 3 million in Germany, 10 million in Japan and 20 million in China.

The government is of the view that the executive orders issued over the years have resulted in creating roadblocks for various processes namely stipend reimbursement, conducting exams, etc and has become a hindrance in the career progression of apprentices while hampering the growth of apprenticeship training in the country.

 

 

Centre plans to set up 5000 skill hubs across India: Rajeev Chandrasekhar / ET / 24 March 2022

Extract :

Ø  The whole objective of the skill hubs is to use the existing infrastructure of both the education system and the existing Skill India infrastructure and network to provide a comprehensive skilling and vocational training programme to students , dropouts, and also to those who are seeking employment opportunities outside the education system in various skills

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MY  TAKE  :

This news report does not provide the details. I could not find it anywhere on Net

Neither is there any clue that the revised PROCEDURES incorporate some fundamental REFORMS suggested by Shri Mahendra Nath Pandeyji ( Minister for Skill Development and Entrepreneurship ), in a note submitted to the Cabinet last February

For those suggestions, look up :

ApprenticeShip : Unanchored and ready to sail ? ………….[ 08 Feb 2021 ]

 

I get a feeling that the announcement merely focuses on a few “ irritants “ , without addressing the core issues

What are those “ Core Issues “ that go beyond mere tinkering with “ procedures “ , and need to be quickly addressed ?

Here is what PM has to say re those “ Core Issues “ :

( It is imperative to prepare ‘demographic dividend’ of country as per demands of changing job roles : PM Modi  /  ET  /  21 Feb 2022 )

 

During his address, the Prime Minister spoke about the five priority areas :

#   Universalization of quality education;

#   Skill Development;

#   Inclusion of India’s ancient experience and knowledge of urban planning and

     designing into education;

#   Internationalization and

#   Focus on Animation, Visual-Effects, Gaming and Comic (AVGC).

 

He further stated that DESH Stack e-portal ( Digital Ecosystem for Skilling and Livelihood ) aims to :

#  Bring together academic, industry demands and linkages,

#  Improves employment prospects and

#  Enable the start-up ecosystem.

 

Related Readings :

2020

Human Resource Capital of the World ? …………………….....[ 23 Nov 2020 ]

Congratulations, Shri Ajit Pawar / Shri Nawab Malik ….[ 06 Mar 2020 ]

===================================================

2019

Thank You, Prakashbhai ( Javadekarji ) ……………………..[ 03 Apr 2019 ]

Congratulations , Anilbhai Naik ……………………………………..[ 08 Feb 2019 ]

Organizing the Unorganized …………………………………………...[ 04 Feb 2019 ]

Extract :

Role of Ministry of Skills Development

#   There are around 15,000 skill training centres in the country right now,   which are inadequate for India’s size

 

#   We need to train at least 2 crore people every year, but right now we’re

      training only 1.05 crore. We need to double our capacity

 

#  At Rs 3 cr / centre, we need Rs 45,000 cr to construct additional 15,000 centres, to be able to train 2 cr youth / year. It will take years to construct these centres, even if the required funds were available ( - which is not ! )

 To bypass both of these limitations, I suggest :

          #   Transform millions of  MSME  into “ Skill Training Centres “

         #   Deliver online Training Courses for development of various skills through

               the Computer provided by the Labor Ministry for implementation of

               MaanDhan Scheme

         #   Some of these may be VR based training, requiring VR headsets ( to

              be  provided FREE to MSME by this Ministry ).

              These can be used not only by the apprentices but also by the MSME’s

              own workers

                                    

         #   As an incentive / motivation for the MSME to undertake to train at least

              2 apprentices  per year ( under the Apprentice Act ) , following may

              be considered :  

              +   Government subsidizing the stipend payable to the trainees by 50 %

              +   No obligation to absorb the trainees after completion of training

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2018

Starting a Virtuous Circle …………………………………[ 17 Dec 2018 ]

Of Interns and Apprentices ………………………………[ 07 Jan 2018 ]

 ================================================

2017

Discovering the Obvious ?......................................[ 30 Nov 2017 ]

Universal Basic Income   …………………………………………….[ 20  Jan  2017  ]

Extract :

WHAT WOULD BE THE RIGHT APPROACH ?

 Right approach would be :

 " Do not give fish to a hungry man / teach him how  to fish "

 In short, empower them to earn their own living by teaching them " Skills " and

 by gaining " Experience " in use of those skills

Entire cost of this " Skilling " and " Experiencing " to be borne by the

Government, till each targeted poor / unemployed person, either gets gainfully

employed or becomes self-employed

 

HOW TO TRANSLATE THIS " SELF HELP " CONCEPT INTO PRACTICE ?

Divide the implementation in following 3 phases

    *    Empowering - 3 years ( Imparting Skills in Industrial Training Institutes )

    *    Experiencing - 3 years ( Providing experience in Ind / Commercial

          Establishments )

    *    Self-dependence Phase ( Working in a gainful job or as Self Employed )

WHAT SKILLS WILL GET PROVIDED IN ITI ?

Entire range of Manufacturing Industry related skills being currently imparted

plus a whole host of commercial skills required by E Commerce / Fintech /

Agriculture Processing  / Payment Banks / Service Sector / BPO / Telecom and

other emerging sectors

 

HOW SHALL WE MOTIVATE UNEMPLOYED YOUTH TO JOIN ITIs ?

* Each trainee will receive Rs 1000 pm ( for course duration of 3 years )

   This amount will get deposited in Jan Dhan bank account of trainee ( DBT )

 

HOW CAN WE GET PRIVATE SECTOR PARTICIPATION IN THIS PHASE ?

 If a Private firm or individual comes forward to set up such a Training

 Institute ,

      #    Treat it as an Infrastructure SPV

      #    No questions asked as to the source of funds for setting up such ITI

         {a kind of Amnesty Scheme to convert Black Money into White Money  }

    #   A government grant of Rs 1,000 pm per trainee to such SPV ( DBT in

         Bank A/C )

          

         If this is done, expect 10,000 SPVs to come up within one year and 10

         million youth to get  trained each year !

         

HOW CAN WE GET INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS TO

 PROVIDE EXPERIENCE TO TRAINEES PASSING OUT OF ITIs ?

*    AMEND APPRENTICESHIP ACT

*    Allow all Industrial and Commercial Establishments to engage ANY NUMBER

      of apprentices ( without upper limit ) , for a period of 3 years

     

*   Starting stipend   =  Min of Semi-Skilled wages ( currently, approx Rs 6,000

     pm )

*   Annual Increment =  5 %

*   Establishment to pay 75 % of stipend

*  Government to pay 25 % of stipend ( DBT into Jan Dhan account of the

   Apprentice )

 

    Discovering the Obvious ? ………………………………….[  30  Nov  2017  ]

 Extract :

I urge the Policy Makers to consider the following ‘ triggers ‘ :

     Revise Apprenticeship Act,

     to enable employers to engage ANY NUMBER of ( eligible ) youth as apprentices

     and allow employers to devise “ Training Structure “ as per their needs

Any Employer wanting to engage apprentices under this revised APPRENTICESHIP

 ACT , would need to be registered online on the web site of Labour Ministry

 and must have installed a Biometric Attendance system , as described in :

                                  From  BAD to  MAD  

      An eligible youth can serve his apprenticeship period with only one employer

      A person who has successfully completed his apprenticeship cannot be accepted

      as apprentice , a second time , in same or any other company

      Remove :

#  concept of 5 different “ categories “ of apprentices

#  concept of “ Shop-floor Trades “ for engaging Apprentices

#  concept of “ Trade-wise Ratios “ of apprentices

#  distinction between “ Shop floor “ and “ Office “ , and just say “ WORK PLACE “

#  the stipulation concerning “ different years of training for different trades “

    [Just make all training for 4 years ]

 

#   THE CONCEPT OF “ CONTRACT APPROVAL “ BY APPRENTICE ADVISOR

      #   Fix stipends payable to apprentices as follows :

Ø              Starting Stipend…………….. Minimum wage as per Min Wage Act

Ø              Annual Increase……………… Linked to rise in CPI

 

      Reimbursement of Training Cost incurred by the Employers

Ø  25 % of the Stipend cost to be borne by the Central Government and this amount

    to be transferred to the Jan Dhan Account of the concerned apprentice ( as DBT )

 

Ø  This provision will reduce our “ Cost of Manufacture “ and help to make India a

  “ Low Cost Economy “ , without calling this a “ Subsidy “ and violating WTO rules

 

This would be far better than controversial Universal Basic Income ( UBI )

Ø  It shall not be obligatory on the part of the employer to offer any employment to

     any apprentice who has completed the period of his apprenticeship training in his

    establishment, nor shall it be obligatory on the part of the apprentice to accept an

     employment under the employer.

 

Ø  To encourage PRIVATE SECTOR to come forward in a BIG WAY , to set up

     Industrial Training Institutions ( ITI ) , implement my earlier suggestion , as

     follows :

                 SkillCapital of the World ?  ……………..[  06  June  2016  ]

No mere Relief : A Game Changer   …………………[  20  Dec  2017  ]

Extract :

I urge the Union Government to take following steps simultaneously , in order to

generate , not just 5 million but  50 MILLION  new jobs in the MSME sector ( and

without additional funds ! ) :

#   Abolish all visits by Inspectors (Labour + Shop & Establishment Departments )

#   Allow MSMEs to engage Apprentices under the recently revised Skills

     Development Regulations / Apprentice Act

#   For them , remove the upper limit ( of Apprentices ) which is maximum of

     10 % of employee strength

#   Let them engage Apprentices up to 100 % of their existing employees

#   Let them keep these trainees for 3 years under " Retail Establishment

     Trainee  Scheme "

#   Let the stipend be 100 % ( instead of currently prescribed 60-70-80 % ) of

     semi- Skilled Minimum wages

     ( Minimum Semi Skilled Wages are approx Rs 6,000 per month so Shopkeeper

       need to pay Rs 6000 pm )

#   Concerned State Governments to subsidize 50 % of this stipend (so,

     Shopkeeper's burden to be  Rs 3,000 pm )

     [  Stipend Subsidy does not violate WTO  !  ]

#  To ensure fool-proof  compliance with the number of Trainees engaged and

    Stipends paid , following Scheme , viz:

    ( 24 hr open + 100 % trainees + 100 % Stipend + 50 % Subsidy + 3 year

       training program + No inspectors) ,

-        will apply ONLY to those Shops which implement , mobile app MAD outlined in

      my following blog :

                               From  BAD to  MAD   [  01  June  2016  ]

===================================================

2016

Skill Capital of the World ? ……………………………[ 06 June 2016 ]

Harness " Greed " to " Skill India "……………….[ 19 June 2016 ]

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2015

Make in India is Skilling India…………………………..[ 17 July 2015 ]

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2013

Rejoice You Jobless ! …………………………………………[ 03 Sept 2013 ]

 

With regards,

Hemen Parekh / 30 March 2022 /  hcp@RecruitGuru.com