Background

National Skill Development Corporation, Ministry of Skill Development & Entrepreneurship (MSDE) is responsible for co-ordination of all Skill Development efforts across the country, removal of discount between demand and supply of skilled manpower, building the vocational and technical training framework, skill up gradation, building of new skills, and innovative thinking not only for existing jobs but also for jobs that are to be created.

The Apprentices Act, 1961 was enhanced with the objective of regulating the program of training of apprentices in the industry by utilizing the facilities available therein for imparting on-the-job training. Ministry of skill Development and Entrepreneurship is the administrative ministry responsible for implementation of the Act.

Apprenticeship training is one of the most efficient ways to develop skilled manpower for industry by using training facilities available in the establishments without putting any extra burden on exchequer to set up training infrastructure. Persons after undergoing apprenticeship training can easily adapt to industrial environment at the time of regular employment. The other advantages of apprenticeship training are as follows: It is one of the most important schemes in terms of quality of training, experimental learning and the enhanced employability that it provides. It is the most promising skills delivery vehicle in the industrial/training ecosystem of the country as it provides for a structured and rigorous training programme which helps apprentices becomes skilled. It gives apprentices a real chance to put skills into practice and helps them to gain confidence in a working environment.

The government has brought comprehensive amendments in the Act in December 2014 to make it more attractive for both industry and youth. Major changes introduced in the amendment are: replacing the outdated system of trade wise and unit wise regulation of apprentices with a band of 2.5% to 15% of the total workforce (including contractual workers), introduction of optional trades, removing stringent clauses like imprisonment & allowing industries to out-source basic training.

Keeping in view the importance of Apprenticeship Training, the scheme for “Promoting Apprenticeship Training was placed before the cabinet for its approval and the Cabinet approved “National Apprenticeship Promotion Scheme”.

Objective

The main objective of the scheme is to promote apprenticeship training and to increase the engagement of apprentices from present 2.3 lakh to 50 lakh cumulatively by 2020.

The scheme has the following two components: 1 Sharing of 25% of prescribed stipend subject to a maximum of Rs. 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices. 2 Sharing of basic training cost in respect of apprentices who come directly to apprenticeship training without any formal trade training. Basic training cost will be limited to Rs. 7500/- for a maximum of 500 hours/3 months.