Apprenticeship Programme in India - Game Changer
in the Skill Ecosystem

India is a young nation where youth are educated and skilled but not industry ready/employable as they do not have the adequate shop floor training. The difference between skilling and apprenticeship is that while skill development is essentially a supply driven programme being run through training partners, the apprenticeship programme is essentially a demand driven programme to meet the specific needs of the industry. Apprenticeship allows intake of young skilled people to train them on the shop floor of the establishment. It facilitates the much-needed shop floor exposure to the apprentice and enables him/her to become industry ready. Apprenticeship is also mandated by law.

Industry Friendly Legislation for Apprenticeship

The apprenticeship programme in India formally started with the promulgation of the Apprentices Act 1961. The Government of India has brought about comprehensive reforms in the Apprenticeship Act in 2014 (& the Apprenticeship Rules in 2015) to make apprenticeship extremely industry friendly and self-regulated. Some of key reforms include:

  • Removal of prescriptive, quota-based apprenticeship norms and the introduction of a flexible need-based band of 2.5% to 10% of the total manpower.

  • Introduction of optional trades under the apprenticeship programme, enabling industry to design their own courses.

  • The service industry has been brought under the apprenticeship umbrella.

  • Graduates and youth who have passed National Skill Qualification Framework (NSQF) aligned short term training (STT) courses, and even class VIII unemployed youth are eligible to undergo the apprenticeship programme.

The Apprenticeship Programme consists of Basic Training and On-the-Job-Training(OJT)/Practical Training at the workplace in the industry. The basic training is an essential component of apprenticeship training for those who have not undergone any institutional training/skill training before taking up on-the-job-training/practical training. Apart from basic training, there is a component of on-the-job training which is performed in the establishment and undertaken by the establishment itself. Basic training usually accounts for 20-25% of the duration of the overall apprenticeship programme but can vary depending on the specific requirement of the curriculum. The basic training and on-the-job training component can run simultaneously or sequentially one after the other, in accordance with the arrangement between the employer and training partner. In the case of sequential mode, basic training will precede on-the-job-training.

National Apprenticeship Promotion Scheme

Government of India launched the National Apprenticeship Promotion Scheme (NAPS) in August 2016 to promote the apprenticeship programme in India by introducing a package of financial incentives to establishments engaging apprentices. This package is specially intended to support and promote apprenticeship in the MSME segment for enhancing its productivity and competitiveness and for capacity building.

The financial benefit has two components:

I. Reimbursement of 25% of prescribed stipend, subject to a maximum of INR 1,500 per month per apprentice.

II. Reimbursement for cost of basic training, up to INR 7,500 per apprentice for a maximum period of 3 months/500 hours.

Apprenticeship is Mandated by Law

Establishments required to engage apprentices

The establishments have the flexibility to choose the trades/job roles as per their specific requirements. The flexibility to an establishment allows them to even design their own courses and take on apprentices on stipend of 70% of the state minimum wage for semi-skilled workers.

Benefits of Apprenticeship for Establishments

  • Freedom to design an industry specific course.

  • It is a well-established way to make potentially employable people industry-ready.

  • Reduces attrition - Studies conducted by ILO reveal that employees who have come through an apprenticeship programme tend to stay on longer in an establishment from where they have undergone an apprenticeship course.

  • Hedges the training cost/recruitment costs.

Courses under Apprenticeship

As per the amendments under the Updated Apprentices Act, 1961/ Apprenticeship Rules 1992, an establishment has full discretion to design and run an Optional Trade Apprenticeship Programme. It needs to only upload the syllabus and duration on the portal. In case an establishment opts for financial support under National Apprenticeship Promotion Scheme, it needs to have the course aligned to the National Skill Qualification Framework (NSQF) as public funding has NSQF alignment as a pre-requisite.

To facilitate establishments to design their own optional courses and frame requisite entry qualifications and curriculums under them, a template has been designed to standardise this process. A standardised template makes it easy for all stakeholders to understand the process and the different pathways available to the youth for apprenticeship.

Portal

The registration of establishments as well as candidates has been detailed on the portal www.apprenticeshipindia.org. All contracts of apprentices are generated on the portal. The Basic Training Providers (BTPs) and Third-Party Aggregators (TPAs)registration is on the portal as well.

Basic Training Providers (BTPs)

Basic Training (BT) is the theory component of the apprenticeship programme which the industry can choose to conduct inhouse or outsource to an independent BTP. BT is envisaged to account for 20-25% (max 3 months) of the overall duration of the apprenticeship programme. It would be provided as per the available curriculum of apprenticeship courses. National Apprenticeship Promotion Scheme (NAPS) benefit of up to INR 7,500 for a period of max 3 months would be extended to the BTP (at INR 15 per hour).

Third Party Aggregators (TPAs)

TPAs arrange for basic training of the candidates who need to do BT under the apprenticeship programme. They also select up to 3 establishments for On-the-Job Training in case complete facility as required under the course curriculum is not available with a single establishment. TPAs operate on the apprenticeship portal on behalf of the establishment. They create opportunities, select candidates, send offer letters etc. They also monitor the apprenticeship programme for each apprentice and submit reimbursement claims on behalf of the establishment. They ensure compliance to all formalities regarding assessment and certifications.

Conclusion

The Ministry of Skill Development and Entrepreneurship has left no stone unturned to incorporate the industry feedback and create reforms based on real time challenges. The Apprenticeship Programme is truly the game changer in the skill ecosystem to bring India to the International Standards as a World Skill Hub with industries as the biggest beneficiaries.

Portal Link to Register: www.apprenticeshipindia.org

Pangkhuri Borgohain
Pangkhuri.borgohain@nsdcindia.org

 

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