Rebooting the system for a skills upgrade

There needs to be a road map to rescue private Industrial Training Institutes from their weak state
Small shops, basements, tin sheds and godowns. These are not random workplaces but places where private Industrial Training Institutes (ITIs) are running in the country. Disturbing facts such as these come from the report of the Standing Committee on Labour (2017-18) headed by Bharatiya Janata Party MP Kirit Somaiya, on the “Industrial Training Institutes (ITIs) and Skill Development Initiative Scheme” of the Ministry of Skill Development and Entrepreneurship (MSDE). It was submitted to Parliament few months ago.
The ITIs were initiated in the 1950s. In a span of 60 years, until 2007, around 1,896 public and 2,000 private ITIs were set up. However, in a 10-year period from 2007, more than 9,000 additional private ITIs were accredited.
The only way to mobilise adequate resources the right way is to do skills training, and have equipment and tools that keep pace with changing needs and ensure that employers have skin in the game. This is possible through a reimbursable industry contribution (RIC) — a 1-2% payroll tax that will be reimbursed when employers train using public/private infrastructure and provide data. RIC, which is implemented in 62 other countries, was recommended in the 12th Plan and is an idea whose time has come.
Finally, while there is so much talk of skills for the future and the impact of artificial intelligence and automation, data show that 13.8 lakh students in the ITIs are suffering due to poor institutional accreditation. Placement in NSDC training has been less than 15%. Maybe if we take care of the present, we will be better prepared for the future. Santosh Mehrotra is Professor of Economics, Centre for Labour, Jawaharlal Nehru University, a member of the Prasad Expert Committee on Sector Skill Councils, and a lead author of the National Skills Qualification Framework. Ashutosh Pratap works on skills and jobs issues and has worked with the Expert Committee
Source : https://www.thehindu.com/todays-paper/tp-opinion/rebooting-the-system-for-a-skills-upgrade/article24618726.ece

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