Public Private Partnership
Need For LaunchOut of 1896 Government ITIs in the country (as on 1.1.2007), 500 Government ITIs are being upgraded into Centers of Excellence under a scheme started from 2005-06. In his Budget Speech 2007-08, Hon. Union Finance Minister announced upgradation of remaining 1396 Government ITIs into Center of Excellence through Public Private Partnership. Accordingly, this scheme with total outlay of Rs 3665 crore (Rs. 3490 crore for upgradation of 1396 ITIs @Rs. 2.5 crore per ITI and Rs 175 crore for management, monitoring and evaluation of the scheme) was framed. In its meeting held on 25.10.2007, CCEA had given, in principle‟ approval for the Scheme for the XI Five Year Plan period and financial approval of Rs. 750.04 Crore for the year 2007-08 for the first batch of 300 ITIs
CCEA, in its meeting held on 03.10.2008, had given approval for upgradation of remaining 1096 Government ITIs during the period 2008-09 to 2011-12 with a total outlay of Rs. 2800 Crore (Rs. 2740 Crore for upgradation of 1096 Government ITIs @ of Rs. 2.5 Crore per ITI and Rs. 60 Crore for management, monitoring and evaluation of the Scheme).
ObjectiveTo improve the employment outcomes of graduates from the Vocational Training System, by making design and delivery of training more demand responsive.
Silent FeaturesSelection of ITI and Industry For each ITI to be covered under this Scheme, one Industry Partner is associated to lead the process of upgradation in the ITI. The Industry Partner is identified by the State Government in consultation with Industry Associations.
Formation of IMC and its registration as a society a. An Institute Management Committee (IMC) is constituted/ reconstituted for each selected ITI. The IMC is converted by the State Government into a Society under relevant Societies Registration Act. The IMC registered as a society is entrusted with the responsibility of managing the affairs of the ITI under the Scheme.
b. The IMC is led by the Industry Partner. In the IMC, the members are as follows:
Role of Industry PartnerThough financial contribution by the Industry Partner is not a pre - condition to participate in the Scheme, however it is desirable if Industry Partner contributes financially in the upgradation of the ITI. The Industry Partner may contribute machinery, tools and equipment etc. which may be instrumental in furthering the objectives of this Scheme. It also arranges to provide training to the faculty members and on the job training to the students of the ITI.
Role of State GovernmentThe administrative control of the staff of the ITI remains with the State Government and it continues to pay their salaries and other emoluments. The State Government is required to ensure that the sanctioned strength of the instructors in the ITI is always filled up and in no case the vacancies exceed.
10% of the sanctioned strength at any point of time. They are required to ensure that all additional positions required by the ITI are sanctioned and filled up on priority. It has to ensure provision of funds to meet office, administrative and other running expenses of the ITI. The State Government, as the owner of the ITI, continues to regulate admissions and fees except upto 20% of the admissions which are determined by the IMC.
Monitoring Agenciesa. The Central Government has constituted a National Steering Committee (NSC) with adequate representation from industry, State Governments and other Central Government Departments to act as an Apex body for guiding implementation and monitoring of the Scheme. It has also set up a National Implementation Cell (NIC) at the Central level for management, monitoring and evaluation of the Scheme.
b. To monitor implementation of the Scheme at the State level, the State Government has set up a State Steering Committee (SSC) with adequate representation from the Industry. The SSC is assisted by a State Implementation Cell (SIC) with sufficient staff for management, monitoring and evaluation of the Scheme at State level.
Institute Development PlanThe interest free loan is released to the IMC is directly on the basis of an Institute Development Plan (IDP) prepared by it. The IDP is developed in such a way that it leads to upgradation of the ITI as a whole. Simultaneous upgradation in a particular trade sector may also be taken up. The IDP defines the long term goals of the Institute, the issues and challenges facing the Institute and the strategies for dealing with them. It sets targets for institutional improvement, define Key Performance Indicators and detail the financial requirement with year-wise break up to meet the needs. The IDP is submitted to the State Steering Committee (SSC), which scrutinizes it and forwards to the Central Government for release of funds. Format for Institute Development Plan is enclosed at Annex-II.
Conditions for use of Funds of IMCThe interest free loan received by the IMC is kept in a separate bank account opened in the name of the IMC in a public sector bank. Any private contributions, special grants received from State Government and revenue generated by the IMC is also deposited in this bank account. The loan amount may be used for providing additional civil work in the ITI, which shall not exceed 25% of the total loan amount; for use as seed money, which shall not exceed 50% of the total loan amount; for procurement of machinery and equipment and for other activities directly related to upgradation of training infrastructure in the ITI. Any deviation from this pattern of use of funds has to be justified by the IMC and prior approval obtained from the NSC.
The following procedure is followed for utilization of funds received by them as interest free loan from the Central Govt. under the Scheme
Repayment of Loan and Books of Accountsa. For the repayment of loan, there is a moratorium of ten years from the year in which the loan is released to the IMC. After the moratorium, the loan is payable by the IMC in equal annual installments over a period of twenty years, the first installment repayable from the 11th anniversary of the day of drawl. In case of default in payment of installment of the loan the NSC may impose penalty on such overdue payments or take any other action deemed fit.
b. The IMC maintains regular books of accounts, gets them audited and prepares annual reports and statements of accounts as required under the relevant Societies Registration Act. The Central Government may call for its books of accounts, vouchers, documents, etc. relating to any accounting year and also authorise an officer for their inspection.
Key Performance IndicatorsWith the broad objective of improving the quality of training leading to better employability, all the three parties jointly agree and finalise Key Performance Indicators (KPIs) as yearly targets for next five years, for improving the internal as well external efficiency of the ITI against the base line information. These parameters are used to evaluate the success of the scheme during and after the project period. The agreed KPIs signed by the IMC and the State Government are appended to the MoA.
Steps For OperationalisationThe various steps required for operationalisation of the Scheme are as follows :