To bring the much publicised upgradation programme of 1396 Industrial Training Institutes (ITIs) through PPP route a step closer, the Finance Ministry, in a communique dated July 31, has asked the concerned stakeholders to “draw up the Terms Of References (ToR) for the tasks to be performed by IL&FS IETS” by August 10. IL&FS IETS has been appointed as the nodal body for development and implementation of all projects for upgradation of state-run ITIs. The various stakeholders that will deliberate on the terms of references for IL&FS IETS include the labour and employment director-general and industry associations like CII, FICCI and Assocham. They will also determine ‘the principles on which the quantum of payment to the organisation (IL&FS IETS) would be made”.The payment determined and approved by the National Steering Committee for the task to be performed by IL&FS IETS would be paid by each of th industry associations for the ITIs adopted by them. The services of IL&FS IETS would also be available to the national and state steering committees for technical support. After finalisation of parameters by the concerned stakeholders, the Department of Economic Affairs (DEA) will call a meeting — to be chaired by its joint secretary — to firm them further. The framework of cooperation for effective implementation of ITI upgradation would be issued after approval by the labour secretary, the communiqué informs. It also clearly states that the overall framework of the tripartite draft MoU — to be signed by Central, state and industry associations — would need further elaboration in terms of the various stakeholders and the risks to be borne by them. The structuring of the financial model of the ITIs, which is crucial for its success, would determine the financing pattern between the Central government, state governments and private partner so that a self-sustainable model of management and mode of repayment of Central loans can be created. Even though the MoU had earlier envisaged a development plan for each ITI to be prepared by the institute’s management committee, this plan will now be presented by ITI itself as none of the stakeholders have “the necessary capacities to efficiently structure the project”.PPP route a step closer• Labour & Employment Director-General, industry associations to frame terms of references• Deadline for TOR is August 10 • To determine quantum of payment to IL&FS IETS • ITIs to present unique solutions in revised MoU
