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 ) :
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.
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