Skills Development
Sector Update


Private-Public Partnership for ITI Up-gradation

The Finance Minister''s announcement to provide financial support for the upgradation of Industrial Training Institutes (ITIs) through Public–Private-Partnership (PPP) has given a new lease of life to the scheme. 1396 ITIs have been proposed to be upgraded into Centers of Excellence in specific trades and skills under Public-Private-Partnership. Under the proposed scheme, the State Government, as the owner of the ITI, continues to regulate admission and fees while the new management will be given academic and financial autonomy and the Central Government will provide financial assistance by way of seed money.

The Finance Minister also proposed to grant an interest-free loan of up to Rs. 2.5 crore to each ITI for upgradation and revision of courses. It is envisioned to upgrade at least 300 ITIs every year beginning 2007-08 under the PPP mode. He further stated that Rs. 750 crore have been kept aside for this purpose.

CII considers that all Centers of Excellence should be administered through IMCs and that a number of conditions should be mandatory if IMCs are to be effective, that is, if ITIs are to deliver demand-driven training in their catchment areas. The CII believes IMCs should be responsible for:

  • Selecting staff and for staff training and development. Existing staff should undertake some form of skills upgrading.
  • Setting student entry requirements and for selecting students.
  • Developing and maintaining information systems.
  • Developing and maintaining placement cells for graduates.
  • Upgrading curricula, within national norms, including adopting new courses or abolishing existing courses.
  • Introducing compulsory industry training for students, with employers assessing the practical skills of students as part of the overall assessment.

The ministry has prepared a draft MOU which addresses these and other issues related to ITI upgradation. The draft MoU has been circulated to members for their comments. As on date, responses from CII members have been received from across the length and breadth of the country, covering all regions. Member organisations from over 17 states have expressed their interest in joining hands for the scheme. Companies like Hero Honda, ITC, L&T, Ashok Leyland, BHEL, Coca Cola, HCL, Wipro, Kirloskar and TATA have shown interest in adopting ITIs for upgradation.

The advantages of upgrading ITIs through PPP are:

  • Increased involvement of the industry – better skills delivery and exposure for the candidates.
  • The Industry gets skilled and trained manpower in return.
  • For the Industry it is a media of delegating its Social Responsibility towards the community and stake holders.
  • Improved interaction with the State Governments.