*Rajiv
Pratap Rudy
Since
the early ages, the transfer of skills has been happening through the tradition
of apprentices. A young apprentice would work under the tutelage of a master
craftsman to learn the craft, while the master craftsman would get an
inexpensive form of labour in exchange of training the apprentice and basic
amenities. This tradition of skill development through on the job training has
survived the test of time and found its place in the skill development programs
of various nations around the world.
The
key benefits of apprenticeship as a mode of skill development are that it is a
win-win model for both the industry and the apprentice, and it leads to the
creation of an industry-ready workforce. Most countries around the world have
implemented the apprenticeship model – Japan has over 10 million apprentices,
Germany has 3 million apprentices and USA has 0.5 million apprentices, while
India has only 0.3 million apprentices. This number is relatively low
considering the huge population and demography of India with more than 300
million people in the age group of 18 -35 years.
In
order to realise the potential of the favourable demographic dividend of India,
Hon’ble Prime Minister Shri Narendra Modi launched the Skill India campaign and
subsequently, a separate Ministry of Skill Development and Entrepreneurship
(MSDE) was formed in November 2014 with an ambition to convert India into the
Skill capital of the world. The young and start-up ministry in a very quick
time has covered good ground in terms of putting together policy frameworks,
launching and scaling up the flagship skill development scheme – Pradhan Mantri
Kaushal Vikas Yojana (PMKVY), revamping the ITI ecosystem, launching new schemes
for entrepreneurship development, etc.
Similarly,
Ministry has taken two key steps to increase the adoption of apprenticeship
model in India:
1.
Amendments to the Apprenticeship Act, 1961
2.
Launching of National Apprenticeship Promotion Scheme (NAPS) to replace
Apprentice Protsahan Yojna (APY)
Apprenticeship Act, 1961
The
Apprentices Act, 1961 was enacted with the objective of regulating the
programme of training of apprentices in the industry by utilising the
facilities available therein for imparting on-the-job training. The Act makes
it obligatory for employers to engage apprentices in designated trades to
impart apprenticeship training on the job in industry to school leavers and ITI
pass outs, Graduates engineer, Diploma holder and Certificate in 10+2
vocational stream to develop skilled manpower. During the past few decades, the
performance of Apprenticeship Training Scheme (ATS) was not in line with the
growth of the economy of India. It was found that a large number of training
facilities available in the industry going unutilized depriving unemployed
youth to avail the benefits of the ATS. Analysis and interaction with
stakeholders revealed that employers were not satisfied with the provisions of
the act, especially the penal provision of imprisonment of 6 months. These
provisions were considered too rigid by employers to encourage them to engage
apprentices.
Based
on these inputs the Apprenticeship Act, 1961 was amended in 2014 which came
into effect on 22 December 2014. The key changes brought about by the amendment
are as follows:
a.
Imprisonment is no longer a penalty for violations under the Apprentices Act.
After the Amendment, any non-compliance would be punishable only by a fine.
b.
The definition of worker has been broadened and the method of determining the
number of apprentices to be appointed has been amended. These amendments would
ensure that employers engage a larger number of apprentices
c.
The amendment also made provision for setting up a portal leading to electronic
management of records, contracts and returns.
The
motive behind these amendments was to ensure that employers engage a larger
number of apprentices and to encourage employers to comply with the provisions
of the Apprentices Act.
National Apprenticeship Promotion Scheme
The
government has launched the National Apprenticeship Promotion Scheme (NAPS) on
19th August 2016 to promote apprenticeship training and incentivize employers
who wish to engage apprentices. NAPS has replaced Apprentice Protsahan Yojna
(APY) from 19th August 2016. While APY provided sharing of 50% of the stipend
as prescribed by the Government only for the first two years, NAPS has
provision for sharing of expenditure incurred in both providing training and
stipend to the apprentice as follows:
• Reimbursement of 25% of
prescribed stipend subject to a maximum of Rs. 1500/- per month per
apprentice to all apprentices to employers.
• Sharing of the cost of basic
training in respect of fresher apprentices (who come directly for
apprenticeship training without formal training) limited to Rs. 7500/- per
apprentice for a maximum duration of 500 hours/3 months.
NAPS
was launched with an ambitious objective of increasing the engagement of
apprenticeship from 2.3 Lakhs to 50 Lakhs cumulatively by 2020. We have
received an encouraging response from 1.43 Lakh students who have registered
since the launch of the scheme in August. Ministry of Defence has also
shown support for NAPS, by asking all PSUs under it engage over 10% of total
workforce as apprentices. Hon’ble Prime Minister recently distributed
reimbursement cheques to 15 establishments under NAPS in an event on 19th
December in Kanpur.
A
user-friendly online portal (www.apprenticeship.gov.in) has been
launched in order to facilitate the easy processing of entire apprenticeship
cycle and for effective administration and monitoring of the scheme. The portal
provides end to end service for the employer from registration and mentioning
vacancy to submitting claims, and for the apprentice from registration to
receiving and accepting offer letters online.
MSDE
is working towards promoting the skilling ecosystem through its initiatives to
provide the incentives to employers and creating a regulatory framework to
promote compliance. I strongly believe that our initiatives such as NAPS will
enable us to create an industry-ready workforce and help us transform India
into the ‘Skill Capital of the world'.
*******
*Author
is the Minister
of State (I/C) for Skill Development and Entrepreneurship, Government of India.