Industry urged to earmark 2% of payroll for skill development

Our Bureau Updated - January 24, 2018 at 05:20 AM.

Policy sets target to skill 1.2 crore youth in 2015-16

The private sector will have a huge role to play in the NDA government’s National Skill Development & Entrepreneurship policy, which aims to make India ‘the world’s human resource capital’.

The policy, which aims to train 1.2 crore youth in 2015-16 itself, expects a larger private role in creating infrastructure, funding, deciding the curriculum, designing courses, providing trainers, offering placements and monitoring among others.

“Since industry is one of the major stakeholders, it needs to actively contribute to the cause of skill development. The industry should earmark at least 2 per cent of its payroll bill (including for contract labour) for skill development initiatives in their respective sector,” says the policy, adding that “these funds can be channelised… either through the respective SSCs (Sector Skill Councils) or through National Skill Development Fund.”

Also, monitoring of placements after training will be made mandatory. Employment tracking of individuals for at least one year, post skill training, will be made mandatory under all skill programmes,” it says.

There are financial take-aways for the private sector, too, apart from getting a sector-specific trained workforce.

“Thegovernment will support the creation and use of infrastructure in both public and private domain through appropriate equity, grant and loan support ,” says the policy, adding that while industry houses, including medium and small enterprises, will be incentivised to make shopfloors available for practical training and institutionalise paid apprenticeship, the government also plans to use public institutions, such as Krishi Vigyan Kendras, agrobusiness clinics and the Indian Council of Agriculture Research.While use of the vast Indian Railway infrastructure will also be explored, the “branding of the Skill India Initiative will be ensured through Railways,” it says.

2015-16 target set During 2015-16 itself, the target is to provide skill training to about 120 lakh youth in the country by the Centre, the Ministry of Skill Development said on Thursday, adding that while 60 per cent of the training will be done through the Ministry, the balance will be done through 20 other Ministries/Departments of the government, including 24 lakh youth to be trained/certified under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY). The overall target for skill training would be revisited and fresh targets for different Ministries/Department for 2015-16 would be notified shortly, it added.

Published on July 16, 2015 17:59