BackSkills, labour ministries settle turf war over ITIs
The proposed new ITIs in PPP mode will be executed by the ministry of skill and entrepreneurship
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New Delhi: The turf war between the labour ministry and the new skills ministry over controlling industrial training institutes (ITIs) seems to have been settled, but has taken away ₹ 760 crore in budgetary allocation from the former.
The move follows the labour ministry agreeing to relax its monopoly over employment exchanges. The proposed new ITIs in public-private-partnership (PPP) mode will be executed by the ministry of skill and entrepreneurship. This will be the first new project to execute for the skills ministry, which was so far merely overseeing what other ministries were doing, three government officials said.
“Yes, we have given the PPP ITIs to the skills ministry," said Alok Kumar, director general of employment training. “We have given this entire scheme to the skills ministry along with the budget of ₹ 760 crore."
Labour ministry officials said since the skills ministry came into force, there was tussle between the ministries over control of the ITIs, the industrial training schools that provide foot soldiers largely to the manufacturing sector.
Though the business rules for ministries issued by the cabinet secretariat say the new ministry will manage ITIs, it also said the labour ministry too will take care of vocational and technical training. Since 1956, labour ministry has been running ITIs for creating trained manpower for industry. Though these institutions has been facing criticism over perceptions of falling quality, there is no denying their value for industries.
“The directorate general of employment training (DGET) of the labour ministry had told them earlier that they wish to run ITIs, as has been the case for last five decades, and also the new ministry does not have any expertise on running such institutions. But after several rounds of discussions, the labour ministry conceded some ground," said a government official, who declined to be named.
Another official confirmed the development, adding that the skills ministry is coordinating with the labour ministry on many matters, and there is no conflict between them. He too declined to be named.
Increasing the quantity and quality of technical manpower is critical for the success of Make India, a government campaign to increase manufacturing activity in the country.
As per the PPP scheme, the skills ministry will open at least 1,500 ITIs with support from private firms or company trusts. The government may allot land free of cost and provide viability gap funding to interested parties to open these new institutions, the third government official said on condition of anonymity.
The skills ministry may provide 20-40% of the total cost of these institutions and, the rest will be managed by private entities, the third official added.
“Whether its labour, skill or any other ministry, PPP in skill space is the way forward. But the government has to be proactive and help private parties to survive. Government departments should not look at private players with suspicion and think whatever proposal or feedback they are bringing to the table is driven by profit motive," said Sanjeev Duggal, chief executive of Centum Learning Ltd, a skill training and enterprise solutions company.
These are different from the 1,300 other ITIs supported by the industrial houses. Though industries don’t give funding to these institutions, they help in course design, lab setup, training on shop floors and finally, in recruitment. But they are not designated as PPP ITIs.
Kumar said that though PPP ITIs have been handed over to the skills ministry, DGET of the labour ministry will continue to manage 11,500-odd government and private ITIs which are functional. He said Make in India aims to boost the share of manufacturing in gross domestic product (GDP) to nearly 25% from the existing 15% or so, and all line ministries have a role to play to ensure its success.
The department of industrial promotion is easing the process of doing business along with other ministries.
The labour ministry has started reforming some labour laws, and through ITIs, it wants to improve the supply of trained manpower to the manufacturing sector, Kumar said, explaining why it agreed to relax its monopoly over two important institutions.
Mint reported on 11 December on how the labour ministry has eased its control over employment exchanges.
India has 956 employment exchanges and over 44.7 million registered job seekers. Of these, at least 26.88 million are below 29 years, official data show.
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