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Union Skill Ministry steps up policy engagement with seven states on ₹60,000 crore ITI upgradation scheme
(MENAFN- Adfactors PR) Bengaluru (Karnataka), November 19, 2024 – The Ministry of Skill Development and Entrepreneurship today organized a policy consultation workshop with seven states from the southern and western regions of the country to discuss the National Scheme for the upgradation of Industrial Training Institutes (ITIs), with the aim of drawing a framework for the ambitious ₹60,000 crore program to modernize 1,000 ITIs under a Hub-and-Spoke model, as announced in the budget.
Organized in Karnataka chaired by Shri Atul Kumar Tiwari, Secretary, MSDE, the workshop was attended by the Principal Secretaries of the 7 states along with representatives from World Bank and Asian Development Bank.
Shri Atul Kumar Tiwari, Secretary, Ministry of Skill Development & Entrepreneurship during his address mentioned, “A lot of emphasis was given to employment and skills in this Union Budget 2024-25 to enhance the employment opportunities of the youth that are sustainable as well as equitable. With liberal contributions to the extent of 30,000 crore from the centre, 20,000 crore from states and 10,000 crore from industry is expected to provide a greater impetus in accelerating the pace and quality of skill development in the country.”
Shri Tiwari, further said: “We are analysing different schemes and consulting with industry experts and have arrived at some logical framework for scheme. For the ITI ecosystem to deliver at even better quality and scale three things need to be taken into consideration, i.e., infrastructure, governance and autonomy.”
The focus of this consultation with Andhra Pradesh, Gujarat, Maharashtra, Telangana, Karnataka, Kerala and Tamil Nadu, was on implementation of a hub-and-spoke model aimed at enhancing collaboration between state governments and industry stakeholders. The meeting covered a range of critical topics related to the ITI Upgradation Scheme, preferences of states for proposed models among identified Special Purpose Vehicles (SPVs), the role of state governments in providing budgetary support for operational expenses, and strategies for ensuring active participation from both state authorities and industry in supporting ITI clusters.
Additionally, the meeting addressed the important aspects such as financial and administrative autonomy for managing hub-and-spoke clusters, sustainability models for continued operation post-scheme duration, and selection criteria for ITIs under the scheme. The governance structure of SPVs, including levels of autonomy and board representation, as well as redesigning courses to align with industry needs, were also focussed upon.
This initiative is part of a broader commitment by the Government to invest approximately ₹60,000 crore over five years to upgrade 1,000 it is in a Hub and Spoke model. The goal is to provide skills training to 2 million youth across various sectors including construction, green energy, and advanced manufacturing. The hub-and-spoke model is designed to create a synergistic network that aligns vocational training with industry demands, ensuring that graduates are equipped with relevant skills for the job market.
The outcomes of the recent consultations on vocational education are expected to significantly influence the future landscape of this sector in India, enhancing employability among youth and addressing existing skill gaps in the economy.
With the National Education Policy (NEP) 2020 aiming for at least 50% of learners to have exposure to vocational programs by 2025, further consultations are planned to finalize the rollout plan of this initiative with all stakeholders involved, including industry and students. By engaging educators, industry experts, and policymakers in these dialogues, the government aims to create a robust framework that supports skill development and prepares students for future employment opportunities.
Organized in Karnataka chaired by Shri Atul Kumar Tiwari, Secretary, MSDE, the workshop was attended by the Principal Secretaries of the 7 states along with representatives from World Bank and Asian Development Bank.
Shri Atul Kumar Tiwari, Secretary, Ministry of Skill Development & Entrepreneurship during his address mentioned, “A lot of emphasis was given to employment and skills in this Union Budget 2024-25 to enhance the employment opportunities of the youth that are sustainable as well as equitable. With liberal contributions to the extent of 30,000 crore from the centre, 20,000 crore from states and 10,000 crore from industry is expected to provide a greater impetus in accelerating the pace and quality of skill development in the country.”
Shri Tiwari, further said: “We are analysing different schemes and consulting with industry experts and have arrived at some logical framework for scheme. For the ITI ecosystem to deliver at even better quality and scale three things need to be taken into consideration, i.e., infrastructure, governance and autonomy.”
The focus of this consultation with Andhra Pradesh, Gujarat, Maharashtra, Telangana, Karnataka, Kerala and Tamil Nadu, was on implementation of a hub-and-spoke model aimed at enhancing collaboration between state governments and industry stakeholders. The meeting covered a range of critical topics related to the ITI Upgradation Scheme, preferences of states for proposed models among identified Special Purpose Vehicles (SPVs), the role of state governments in providing budgetary support for operational expenses, and strategies for ensuring active participation from both state authorities and industry in supporting ITI clusters.
Additionally, the meeting addressed the important aspects such as financial and administrative autonomy for managing hub-and-spoke clusters, sustainability models for continued operation post-scheme duration, and selection criteria for ITIs under the scheme. The governance structure of SPVs, including levels of autonomy and board representation, as well as redesigning courses to align with industry needs, were also focussed upon.
This initiative is part of a broader commitment by the Government to invest approximately ₹60,000 crore over five years to upgrade 1,000 it is in a Hub and Spoke model. The goal is to provide skills training to 2 million youth across various sectors including construction, green energy, and advanced manufacturing. The hub-and-spoke model is designed to create a synergistic network that aligns vocational training with industry demands, ensuring that graduates are equipped with relevant skills for the job market.
The outcomes of the recent consultations on vocational education are expected to significantly influence the future landscape of this sector in India, enhancing employability among youth and addressing existing skill gaps in the economy.
With the National Education Policy (NEP) 2020 aiming for at least 50% of learners to have exposure to vocational programs by 2025, further consultations are planned to finalize the rollout plan of this initiative with all stakeholders involved, including industry and students. By engaging educators, industry experts, and policymakers in these dialogues, the government aims to create a robust framework that supports skill development and prepares students for future employment opportunities.
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