Lok Sabha Question No. 4124 (UNSTARRED), answered on 2015-12-23
Subject: Committee on Skill Development
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: YERRAM VENKATA SUBBAREDDY, P.R. SUNDARAM

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## GOVERNMENT OF INDIA LOK SABHA

## UNSTARRED QUESTION NO. 4124 TO BE ANSWERED ON 23.12.2015

## Committee on Skill Development QUESTION

4124.  SHRI Y.V. SUBBA REDDY: SHRI P.R. SUNDARAM:

## Will  the  Minister  of  SKILL  DEVELOPMENT  AND  ENTREPRENEURSHIP  be pleased to state:

- (a) the  details  of  recommendations  made  by  High  Level  sub-Group  of  Chief  Ministers headed by Punjab Chief Minister and the reaction of the Government thereon;
- (b) whether the Committee has recommended for using funds from Education Cess and part of CSR funds to use in skilling India;
- (c) if so, the details thereof and the reaction of the Government thereon and the time by which the recommendations of the Group are likely to be implemented;
- (d) whether the Group has listed Tamil Nadu's Information and Communication Technology Academy (ICTACT) as one model for skill training and has recommended for expansion across the country and if so, the details thereof; and
- (e) whether  the  Government  proposes  to  open  more  such  academies  to  impart  skill training in the country or open more branches of the ICTACT in other States/ UTs and if so, the  details  thereof  along  with  the  steps  taken  by  the  Government  to  enhance  skills  in  the country particularly in rural areas?

## ANSWER MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP (SHRI RAJIV PRATAP RUDY)

(a) to (e)  A Sub-Group of Chief Ministers on Skill Development was constituted to address issues pertaining to human resources, especially  creating a pool of skilled manpower with speed,  scale,  standard  and  sustainability.  The  Sub  group  has  submitted  its  report.  The recommendations of the Sub Group include use of funds from Education Cess and part of CSR  funds  for  skilling  in  India.  The  Sub  group  has  also  recommended  that  instead  of replicating  ICT  Academy  of  Tamil  Nadu  in  each  State,  the  existing  and  established organization (ICTACT)  can  open  chapters  / branches  in willing states, where  local administration can be represented, for carrying on its activities. The major highlights of the recommendations made by the Sub-Group are at Annexure .

The recommendations of the Sub Group cover a wide spectrum of skill development in  the  country  including  improving  quality,  relevance,  quantity,  aspirations,  mobility  and financing of skill development. Action Points for implementation of these recommendations have  been  identified  and  referred  to  concerned  Central  Ministries/Departments,  State Governments and other stakeholders.

## Highlights of the recommendations of Sub Group of Chief Ministers on Skill Development

The major highlights of  the  recommendations made by the Sub-Group are as follows:

## Integrated Delivery Framework for Achieving Convergence

-  The State Skill Development Missions (SSDMs) should evolve into a coordinating  body  to  harmonize  the  skilling  efforts  across  line  departments/ private agencies/voluntary organizations      etc.      The  common  norms announced at the central level may be adopted by the SSDMs  so  as  to  have State-specific  guidelines  for  skill  development programmes.
-  For  decentralized  implementation  and  to  ensure  effective  coordination  and monitoring  of  skill  development  initiatives  a  three-tier  structure  at State,  district and  block  level  for  SSDMs  proposed.  Pattern  of  DRDA  to  coordinate skill efforts at district level can be adopted for effective  coordination and interaction  with  local  self-government,  civil  society,  training  provider,  industry and other stakeholders.
-  Determination of sectoral priorities at State level based on an independent assessment of the needs of each sector and the formulation    of    appropriate    policies    to    enhance    the    qualitative    and quantitative  skill  availability  for  the  sector  based  on  conduct  of  regular  skill surveys.
-  SSDMs should have the overarching power to pool across the resources and to utilize  according  to  priority.    The  inter-linkage  of  the  SSDMs  with  the  industry, training  providers,  Sector  Skill  Councils,  NSDA  should  be  maintained  at  the policy formulation and implementation level.
-  Sector  Skill  Councils  to  assist  the  State  Skill  Development  Missions  to  align training program with NSQF.

## Achieving Scale & Relevance through PPP

-  Industry to be incentivized to set up training institutions in PPP mode in industry clusters to facilitate availability of trained manpower  for  big  and MSME units   and   to   adopt   existing   government   ITIs   and Polytechnics.
-  Local  Industry  to  be  involved  for  curriculum  development,  training  modules, provision of equipments, training of trainers, opening skill  development centres and taking apprentices.
-  Industry  can  also  enter  into  flexi  MOU  based  on  sector,  trade  or institutions and offer work benches for practical  training
-  Industry  can  help  in  Developing  a  database  of  instructors  as  also resilient system for selection of Training providers
-  The  States Government  can  incentivize the public sector or the private industries operating either within the State or in neighbouring regions to involve in  the  skill  development  efforts  of  these  States  through  their SSDMs in less industrialized as well as difficult terrain.
-  Skill  Development  programmes  and  skill  training providers should get  an extension of service tax exemption for the next 5 years.
-  Income  tax  exemption  to  category-A  training  providers  (as  per  the definition of Ministry of Rural Development) for a period of 5 years need to be considered.
-  Skill training in manufacturing sector should be incentivised in all skill development  programmes  to  achieve  the  broader  objective  of  Make  in  India programme'.

## Reaching the Unreached and the Disadvantaged

-  The  possibility    of introducing    legislation    on    Right of Youth to    Skill Development  to  make  it  mandatory  on  the  part  of  the  State  to  impart  skill training to every eligible youth may be explored.
-  Vocational  education  may  be  introduced  from  the  middle  level  onwards  with SSDM  having the responsibility to explore the marketability potential of traditional  skill  sets  of  the  State.  This  would  motivate  the children  to  take  up training in traditional skills especially in States that excel in handicrafts, wood art and  handlooms.  Further  the  international  models  viz  German,  Chinese  and Singapore may be studied for replication in India.
-  Flexibility to states to introduce local and traditional skills meeting local needs  to be  provided  under  various  central  government  administered skill programs and attract local youth for training.
-  Opening of Incubation Centres, counselling Centres  and  Tracking Centres at the village level.
-  The  provision  of  safe  transportation,  female  instructors,  child  care facilities, market  and  finance  to  encourage  women  participation.  Also making available dormitory/  hostel  facilities  in  district  and  block  headquarters  for  students  from remote corners.
-  Using ICT, Mobile vans, to make available training facilities  in villages and hilly areas.
-  Monetary and non-monetary incentives should  be part  of the policy  for training providers and potential employers to engage with differently- abled persons.

## Improving the Quality

-  SSDMs    could    play    a    facilitating    role    to    address    the    shortage    of instructors/   trainers   especially   in   imparting   practical   training   by identifying Government/ private/ self-employed entrepreneurs operating establishments/units in the skills in demand in the State and bring them on the panel  where  students  after  attaining  the  basic  skills  can  be  sent  for  practical training.

## Making Skills Aspirational by involving Local Bodies/NGOs

-  The Railways and other para-military forces   can play a more proactive role  in advocacy and skill development, instead of just focusing on  recruitment rallies. The personnel of these agencies could be used for skill training or these agencies could lend institutional support in imparting training in hilly, inaccessible and difficult terrains.
-  The  awareness  among  the  targeted  population  on  the  benefits  of  skill training can be generated through audio/visual media as well as through street plays and by involving the PRIs/ULBs and Civil Society.
-  Local Bodies to be used for skill mapping and creating a data base of youth at local level.

## Focus on Outcome

-  Union  Government  initiatives  in  strengthening  the  National  Career  Guidance Centre  at the district and  block level, integrating with the  Labour  Market Information System should be facilitated by the SSDMs. This  would  facilitate  to track  the  youth  receiving  skill  training  and moving to placement either as selfemployed or wage-employed. LMIS/National Career Service Centres could be the medium where  the

success stories that are documented can be shared so that it provides a medium for the youth to explore the possibilities of its up- scaling/replication.

## Making Available Adequate Resources

-  To  enhance  the  scale  of  skill  development  resources  is  of  utmost priority. Half  of  the  2  percent  CSR  could  be  used  exclusively  for  skill  development initiatives.  Further  it  was  also  agreed  to  by  the  Sub-Group that  out  of  the  cess collected  under  the  Building  and  other  Construction  Workers  Cess  Act,  1996 the  Cess  Fund  which  is  presently  in  surplus should  be  available  for  imparting skill  training  to  all  underprivileged youth  irrespective  of  whether  or  not  they are  wards  of  construction workers.
-  Public Training Institutions to be made revenue generating.
-  Use      of      MPLAD/MLA      funds      for      creating      infrastructure      for      skill development could be   explored.
-  Funds  generated under education cess could also be used for introducing vocational education from secondary school onwards.
-  M/o  SDE  should  make  a  budget  provision  for  all  States to set up  Skill Universities  or  convert  one  of  the  existing  Universities  as  a  Skill University under  PPP  mode.  This funding could be made available through NSDF/NSDC.

******