A welcome ( first ) step to impart Skills

Dear :

Ø  Shri Mangal Prabhat Lodhaji  { connect@mangalprabhatlodha.com }

Ø  Smt Manisha Vermaji { maniverma100@gmail.com  /  verma@maharashtra.gov.in / manisha.verma69@nic.in }

Congratulations on your path-breaking initiative for introduction of PPP policy for upgradation of ITIs

No doubt, before long, other States will follow your PPP model

Whereas this was a long overdue reform, from the following tabulation, you will observe that there is ample scope for further refinement of this PPP model , such as :

Ø  Enabling PRIVATE parties to create SPV ( Special Purpose Vehicle ) to set up ITIs

Ø  Granting “ Industry Status “ to such SPVs

Ø  Enabling channelling of BLACK MONEY into creation of ITIs

Ø  Granting 10 year TAX HOLIDAY to such SPVs

Ø  Turning SPVs into PROFIT MAKING ventures ( - what all PRIVATE schools / colleges are  today : Why should it is be any different for ITIs ? )

I am acutely conscious that these REFINEMENTS would require the Central Government to enact “ Skill-in-India Act – 2025 “ but , if proposed by you, it will find whole-hearted support from ALL the states

 

With regards,

Hemen Parekh

www.IndiaAGI.ai / www.HemenParekh.in / www.My-Teacher.in

15 May 2025

 

CC : Shri Jayant Chaudhary (  msde@gov.in )

 

 

 

 

Context ( A ) :

Maha Cabinet clears policy for modernisation of govt IITs…    13 May  2025

Extract :

he Maharashtra Cabinet, chaired by Chief Minister Devendra Fadnavis, on Tuesday approved a comprehensive policy for modernisation and transformation of 418 government industrial training institutes (ITIs) in the state through public-private partnership.

The main objective is to transform ITIs into world-class training centres, provide practical and applied learning. This will help increase the employment opportunities through coordination between industry and ITIs.

ITIs will be assigned to the private sector, ranging from 10 to 20 years, but the ownership will remain with the state government. Nearly 2 lakh students will benefit from the public-private partnership.

The Maharashtra Institute for Transformation (MITRA) will associate with this venture as a strategic partner. Also, various NGOs and foundations, including Shri Shri Ravishankar, ICICI Foundation, Naandi Foundation, will also be engaged in this initiative.

The minister of skill development and entrepreneurship Mangal Prabhat Lodha, who was accompanied by the department additional chief secretary Manisha Verma, said:

 “The transformation of government ITIs through public private partnership policy is a transformative initiative designed to :

Ø  modernise vocational education,

Ø  bridge the skill gap, and

Ø  create a workforce that is aligned with industry demands.

The industry institute partnership model ensures that ITIs are:

Ø   sector-specific,

Ø  industry-integrated and

Ø  technologically advanced,

enabling Maharashtra to maintain its leadership in skill development.”

He added that the World Bank is already associated with the upgradation of ITIs and in the coming period, the government will explore the option of procuring ADB loans to provide viability funding for the upgradation and modernisation of ITIs, especially from the rural areas.

The private sector can introduce new courses for training in the fields of artificial intelligence, drone technology, industrial upgraded technology, including robotics, 3D printing.

The minister said the private sector will have to invest a minimum of Rs 10 crore for 10-year involvement and Rs 20 crore for 20 years.

He added that the contribution of private partners will increase in due course of time. Industry partner’s contribution shall be considered on the basis of market price or purchase price, whichever is less, said the minister.

The minister said that the centralised admission will continue while the number of faculty members of the ITIs will not be curtailed. However, the private sector will have the liberty to bring in experts.

The department's Additional Chief Secretary Manisha Verma said that funds available under budgetary provisions and schemes shall continue in a regular manner to the ITIs.

The ITIs will general funds by offering paid skill development courses, establishing skill hubs, creating production centres and providing paid services and consultancies.

Context ( B ) :

Maharashtra unveils policy to transform ITIs into global standard training centres    

Extract :

The Maharashtra cabinet on Tuesday approved a new Public-Private Partnership (PPP) policy aimed at transforming government-run Industrial Training Institutes (ITIs) into centres of global excellence.

The policy seeks to equip students with cutting-edge skills tailored to international industry demands and improve their employability in the job market, Skill Development Minister Mangal Prabhat Lodha told reporters after attending a cabinet meeting.

Lodha described the policy as a “historic step” to help Maharashtra emerge as a global leader in skill development.

“This partnership will not only create employment opportunities but also contribute significantly to the economic growth of the state. Maharashtra is poised to become a global model for industry-aligned vocational training,” he added.

Lodha said the Maharashtra Institute for Transformation (MITRA) will be the strategic partner in implementing this initiative.

“The new policy envisions modernising ITIs through private sector collaboration in curriculum development, infrastructure upgrades, and provision of advanced training technologies.

“It encourages leading corporates, industrial associations, and philanthropists to partner with the government, invest in training facilities, and participate through their Corporate Social Responsibility (CSR) initiatives,” he added.

Lodha said more than two lakh ITI students will benefit from globally relevant training. The newly approved PPP policy will introduce innovative, up-to-date curricula and connect our youth with global employment opportunities.

“While ITIs have long been a vital part of the state as the vocational education system, they now face challenges such as outdated infrastructure, limited finances, and gaps in training quality.

“To address these issues and meet the future demand for a highly skilled workforce, it is essential to revive these institutes through a forward-looking PPP model,” he said.

Lodha said the policy allows private partners to invest in infrastructure, training equipment, and course delivery without the constraints of government procurement procedures.

However, ownership of land and buildings will remain with the government, and existing staff, including instructors, will be retained. Additional faculty for new courses may be appointed by the industry partners.

In the first phase, the government plans to select at least 25 ITIs and expand their number to 100 after reviewing pilot outcomes.

“The policy also proposes setting up Centres of Excellence based on regional industrial strengths, for instance, automotive-related training in Pune and Chhatrapati Sambhaji Nagar.

“Training will focus on emerging sectors such as artificial intelligence, cyber security, additive manufacturing, Internet of Things, robotics and green energy. Emphasis will be placed on practical, hands-on learning aligned with industry requirements,” the minister added.

Each ITI will have an Institute Management Committee (IMC) to oversee operations, chaired by the private partner and co-chaired by the ITI principal or a government appointee.

The policy bars industry partners from engaging in non-training activities on campus and ensures that all infrastructure developed remains government property.

The minister said the industry partners will not be granted naming rights, although limited branding will be permitted with official approval.

“Job placement cells will be established within ITIs under the PPP model, with direct involvement from companies in recruitment and career guidance. Start-up incubation support and employment fairs will also be organised.

“The policy further seeks to enhance female participation, with companies expected to design specific initiatives for women,” he said.

 

My Take :

Some 9 YEARS ago , I sent following e-mail to our Cabinet Ministers / Chief Ministers :

Ø  Skill Capital of the World ?  ……………………..   06 June 2016

 

Following tabulation ( prepared by Grok ) compares my 2016 suggestions with the just announced PPP policy :

 

 

                                                      Modernization of Govt ITIs

Parameter	Maharashtra PPP Policy	My 2016 Suggestion	Comments
Training Objective	2 lakh students	50 million youth annually	PPP Policy targets 2 lakh students, focusing on modernizing ITIs; my 2016 suggestion aimed for 50 million youth annually to make India the "Skill Capital of the World"—PPP scope is much narrower in scale and ambition.
Duration of Partnership	10-20 years	Not specified	PPP Policy sets 10-20 years; my 2016 suggestion didn’t specify a duration—PPP provides a clear timeline.
Ownership to be expected	Remains with Govt.	Remains with Govt.	Both PPP Policy and my 2016 suggestion agree ownership remains with the government—no change here.
Industry-S-VGF	Private sector involvement	Turn into a profit-making proposition for private sector	PPP Policy allows private investment but isn’t explicitly profit-driven; my 2016 suggestion pushed for a profit-making model for the private sector.
Tax Holiday	Not mentioned	10-year tax holiday for SPVs	PPP Policy doesn’t mention a tax holiday; my 2016 suggestion proposed a 10-year tax holiday to attract private players—PPP misses this incentive.
Monetary Funds Expected	Rs 10-20 crore per ITI	Rs 100 crore per institute	PPP Policy expects Rs 10-20 crore per ITI; my 2016 suggestion estimated Rs 100 crore per institute—PPP investment is significantly lower.
Source of Funds	Budgetary provisions, schemes, private investment	Black money with no questions asked	PPP Policy uses budgetary provisions, schemes, and private investment; my 2016 suggestion controversially allowed black money with no questions asked—PPP avoids this.
Freedom to Introduce Fee-CSR Rules	Private sector can introduce new courses	SPVs can devise own courses/curriculum	PPP Policy allows private sector to introduce new courses; my 2016 suggestion gave SPVs full freedom to devise courses/curriculum—both align on curriculum flexibility.
Admission by Private Partner	Centralized admission continues	SPVs free to charge fees, compete for placements	PPP Policy retains centralized admission; my 2016 suggestion allowed SPVs to charge fees and compete for placements—PPP is more restrictive on admissions.
Management	Institute Management Committee (IMC)	Not specified	PPP Policy sets up an Institute Management Committee (IMC); my 2016 suggestion didn’t specify a management structure—PPP provides clearer governance.
Curriculum Development	Industry-aligned, e.g., AI, robotics	SPVs free to devise own curriculum	PPP Policy focuses on industry-aligned fields like AI, robotics; my 2016 suggestion gave SPVs freedom to devise their own curriculum—both emphasize industry relevance but PPP is more specific.

 

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

Added on 22 May 2025 :

State government reaches out to 5,000 private organisations about PPP model for ITIs

 The state skill education department has penned a letter to over 5,000 companies, organisations, professionals, and entrepreneurs informing them about the public-private-partnerships (PPP) in developing Industrial Training Institutes (ITIs) across the state. Skill, employment, entrepreneurship, and innovation minister Mangal Prabhat Lodha on Wednesday announced the decision in the Mantralaya. The government resolution (GR) regarding this policy will be announced on June 6, the coronation day of Chhatrapati Shivaji Maharaj.

To promote this policy, the minister will visit Nashik, Solapur, Nagpur, and Chhatrapati Sambhajinagar within the next week.

“The necessary improvements have not been made in ITIs for the last many years. There is a need to make these institutions more employment-oriented to restore their former glory,” Lodha said. “Various industrial institutions across the state need skilled manpower.” He further explained that the industrial groups who ‘invest’ in running these institutions will get skilled manpower for their industries in return.

Lodha also said he is discussing with all the stakeholders to ensure no errors in the decision. A letter with details about the policy and expected cooperation from private players has been sent out to 5,000 small and large industrial groups, institutions, and boards of directors across the state.

The PPP will last for 10 and 20 years -- the concerned industrial group must invest at least ₹10 crore for a 10-year commitment and ₹20 crore for a 20-year one. 50% of this money will be spent on infrastructure and modern machinery. The rest will be spent on human resources.

Currently, the government is paying the salaries of teachers in the ITIs. The participating industrial groups can appoint more skilled teachers if necessary. However, they will receive the same remuneration as the other teachers and any extra compensation will have to be covered by the private group.

The industrial groups can implement the curriculum they want with the government’s approval.

Lessons from the ‘Adopted School’ scheme

In 2022, the then school education minister Deepak Kesarkar announced the adopted school scheme to revive school infrastructure using corporate social responsibility and non-governmental Organisations. The scheme was widely opposed by the teachers, parents, and students as it allowed the private players to rename the school and conduct non-school activities on premises.