World Youth Skills Day: We’ve Rs 25-crore dues of skill development, Punjab tells Centre

The scheme, started in 2011 by the UPA-II, has been kept under review since June 2014. Also the candidates who were trained are yet to be given the Rs 25 crore funds for the year 2013-14.

Written by Raakhi Jagga | Ludhiana | Published:July 16, 2015 12:37 pm
CICU Skill Development Centre in Ludhiana. (Source: Express photo by Gurmeet Singh) CICU Skill Development Centre in Ludhiana. (Source: Express photo by Gurmeet Singh)

While Prime Minister Narendra Modi launched the Skill Development Mission on the World Youth Skills Day on Wednesday, the Punjab industry reminds him about the skill development scheme that was discontinued since the NDA government came to power.

The scheme, started in 2011 by the UPA-II, has been kept under review since June 2014. Also the candidates who were trained are yet to be given the Rs 25 crore funds for the year 2013-14.

The Punjab government has received Rs 10 crore from the Centre for disbursal of pending amount, but the amount has not been given to the skill development society that works under the department of industrial training.

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Industrialists opened more than 200 skill centres in Punjab under this scheme after 2011. In 2011, the UPA-II had started the skill development scheme to beat labour shortage.

Under this scheme, the industry was asked to set up skill centres and the Centre had prescribed courses and hours for training workers.

The industries further paid Rs 24 per hour for training workers and after the completion of course, the workers were being absorbed by the industrialists.

Upkar Singh, the owner of new Swan industries and general secretary of Chamber of Industrial and Commercial Undertakings (CICU), said, “We have all the infrastructure in our centre and training was given as per requirement of the industry. It is sad that PM Modi has turned a blind eye towards this scheme. On one hand, he says that five crore youths will be made skilled by 2025 and on the other hand, not only there are pending dues but this scheme was also closed.”

Singh has a skill development centre inside his unit. “To get a computer numerical controller operator, we need to impart training for 240 hours as per the course of the Union government. For running advanced turning machine, 120 hours course is needed. Therefore, the government was paying for these hours at Rs 24 per hour. We were getting labour as per our requirement as the government-run skill centres are inadequate,” he added.

The NDA government has made a separate ministry of skill development and entrepreneurship, but failed to meet the expectations of industrialists, said Avtar Singh, the president of CICU.

Jagjit Singh, the joint director of the Skill Development Mission, confirmed that Rs 25 crore is due and yet to be paid to candidates who were trained.

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  1. Z
    Zenebe Uraguchi
    Jul 15, 2016 at 6:57 am
    In November 2014, the United Nations General embly declared 15 July as World Youth Skills Day. This year the day is celebrated for the second time. The day highlights the importance of youth skills development at the global level and the need for better ways of tackling high youth unemployment/underemployment. While celebrating the day is important, much more needs to be done to enable young people to successfully transition into labour;br/gt;lt;br/gt;In this blog post, we use this occasion to reflect on some key issues of skills development – what it means, the main opportunities and challenges it entails and how it can best be addressed. We argue skills development: a) is part of the broader knowledge system and b) can contribute to meaningful youth employment if it is seen as one of the key dimensions of labour market systems development. Read more:
  2. Z
    Zenebe Uraguchi
    Jul 15, 2016 at 6:57 am
  3. C
    Jul 16, 2015 at 1:25 pm
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  4. H
    Hemen Parekh
    Jul 18, 2015 at 12:00 pm
    Make in India is Skill-ing India A couple of days back , PM Shri Narendra Modiji launched this scheme Some 20 odd Central Government Ministries / Departments are engaged in this effort Many State Governments are joining forces to impart Skills Training to millions of Indian Youth As to the number of youth planned to be trained , following figures are reported : > 400 million by 2022 > Creation of a pool of 500 million skilled youth by 2022 > Exportable surplus of 40/50 million skilled youths Major burden for this Herculean effort will be borne by some 11,500 ITIs ( Industrial Training Insutes ) , with a combined intake capacity of 1.6 million students per year ( most have 2 / 3 year courses ) An intake of barely 140 students per ITI per year ! But Skill India program is talking of imparting skills to some 60 million youth every year , for the next 7 years ! That would require some 4,40,000 ITIs , altogether ! Now , uming that setting up a full-fledged ITI , would require an investment of Rs 1 Crore , we are talking of a fund of Rs 4.4 lakh*crores ! Governments ( Central States ) don't have that kind of money Nor will banks lend that kind of money to anyone to set up an ITI , without urance of adequate returns ! Banks are already bleeding with NPAs amounting to Rs 4 lakh*crores and begging the Central Government for re-capitalization ! There are two sources from where this kind of money can come from These are : > 100 % FDI in ITIs > Black Money Channelizing in ITIs To encourage Black Money to flow into this most productive and beneficial use , we must come out with an Amnesty Scheme for such investments thru SPVs. And , whether the investment came through 100 % FDI or thru Amnesty Scheme , the income from operating an ITI , should be made tax-free for 20 years Nothing short of an " Out of Box " thinking will help ! If this suggestion is implemented , I see following consequences : > FDI INFLOW IN SERVICE SECTOR There will be a huge inflow of FDI from Foreign Investors , who , today earn 2 % from their bank deposits . Their investment in an Indian ITI , can earn them , may be , 10 % - and tax-free ! > UPGRADING OF TECHNOLOGY Instead of finding ( in our present ITIs ) , a 20 year old lathe , we will see most modern machines / technologies in these new ITIs This will tremendously raise the Skill Level of graduating students - the kind of skills which will enable students to find jobs abroad > JOB CREATION We should , simultaneously amend the Apprentice Act - 1951 Under the amended Act , every factory will be required to take fresh Apprentices in the ratio of 1 : 3 ( one trainee for three permanent employees , in each trade ) , instead of current prescribed ratio of 1:7 This will create a huge demand for ITI trained students > COST REDUCTION Since ITI trained apprentices are paid a stipend ( generally 20 % of the wages paid to regular / permanent / skilled workers ) , this will sharply reduce the manpower costs of manufacturing units This will lead to India becoming a " Low Cost Economy " and increase the compeiveness of our products , in the international markets , thereby boosting our exports ( currently , a meager 1.7 % of World Trade ! ) This is the major reason why Foxcon ( Taiwan ) wants to put up 10 factories in India , at an investment of $ 20 billion > ADVANTAGE , MSME Under amended Apprentice Act , permit MSME to retain ITI trained skilled workers , on a stipend-basis , for 4 years ( instead of current 2 years ) This lowering of wages will make MSME very compeive in their cost. In turn , this will encourage large organized factories to outsource / sub-contract more components to MSME , instead of manufacturing in-house This will result in a robust " Supply Chain Eco-System " It is such an Eco-System in China , which compels Apple to have 331 Component-Suppliers in China as against ONE supplier from India ! > PRODUCT QUALITY Product quality depends upon quality of skilled manpower coming out of ITIs When lakhs of ITIs are competing with one another for attracting students , each will try to raise the quality of its training When such highly trained students enter work force , quality of " Make in India " products , is bound to rise > PERCENTAGE OF SKILLED WORKERS Of the total work force , percentage of skilled workers in India today , is meager 3.5 % , as against 96 % in South Korea ! If my suggestion gets implemented , we should be able to raise this figure to at least 50 % in next 10 years ! > DEMAND FOR TEACHERS There will be a huge surge in demand for Highly Skilled persons to act as teachers / trainers in 4.4 lakh ITIs > SELF EMPLOYMENT MUDRA bank will provide loans to ITI trained skilled workers to set up themselves as local area Carpenters / Electricians / Plumbers / Welders / Masons / Repairers etc Thousands of ITI trained workers will tend to become Self Emplo You will be justified in asking : " How do we know that your suggestion will transform India's Unskilled Youth into a Demographic Dividend ? " All I can say is : " Luck happens when preparedness meets opportunity . If we prepare ourselves , opportunity will arrive , sooner than later " ------------------------------------------------------------------------------------- hemen parekh 18 July 2015 B2BmessageBlaster