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Center of Excellency Industries
Centres of Excellence :
PRODUCTION AND MANUFACTURING SECTOR
• Centre of Excellence in Production and Manufacturing Sector is selected.
• Separate Workshop is earmarked, Plans & Estimates are done to make it as a CoE
 
PRODUCTION AND MANUFACTURING SECTOR
IS STARTED IN
GOVERNMENT I.T.I., KAKINADA
E.G.DIST., ANDHRA PRADESH
Following Trade Units Surrendered for the availability of infrastructure & Staff
• PMBT – 01 : One Fitter Unit Surrendered
   • PMBT – 02 : One Welder Unit Surrendered
        • PMBT – 03 : One Electrician Unit Surrendered
   • PMBT – 04 : One Welder Unit Surrendered
      • PMBT – 05 : One Machinist Unit Surrendered
 • PMBT – 06 : One Turner Unit Surrendered
• In Government I.T.I., Kakinada 120 Trainees are admitted
• Broad Based Basic Training is started in Six different modules with a batch of 20 Trainees each.
• Till Date each batch completed One module
• Their skills are assessed by Trade Instructors & recorded in the Progress Card.
PREREQUISITE FOR COE
• Clear Guidelines regarding Industry driven module & Certification process.
• All India Trade Test Exam pattern
• Provision of Apprenticeship is to be made available for CoE pass outs (frequent enquiries from parents & Students).
• Training to the instructors & Principals to be arranged, so as to get more exposure to the training.
• Industry organization should give active participation for the success for CoE Scheme.
VOCATIONAL TRAINING UNDER DGE & T
1.
Directorate General of Employment and Training (DGE & T) in the Ministry of Labour and Employment is the nodal organization for formulating policies, laying down standards, prescribing course curricula, granting affiliation to institutes/courses, trade testing and certification.
2.
DGE & T operates a number of specialized training institutions for skill up-gradation of industrial workers, physically challenged persons, women and also for instructors of Industrial Training Institutes (ITIs).
3.
Institutional vocational training is organized by the State/ UT Governments and the private sector in the ITIs.
4.
Shop floor training is provided under the Apprentices Act 1961 in public and private sector industry.
5.
Two tripartite bodies, viz. the Central Apprenticeship Council (CAC) and the National Council for Vocational Training (NCVT) advise Central Government ministries, State/ UT governments. Representation is also given to women, SC/ST and exports etc
6.
Corresponding State Councils advise the State Governments in respect of vocational training at State Level

ROLE OF CENTRAL GOVERNMENT
1.
Formulation of policies, laying down standards and norms in respect of vocational training programmes.
2.
Addition & deletion of courses under Craftsmen Training Scheme & Apprenticeship Training Scheme according to the skills required by the industry.
3.
Development & revision of curricula to keep pace with changing technology.
4.
Affiliation of trades with National Council for Vocational Training (NCVT) to maintain uniform training standards.
5.
Implementation of Apprenticeship Training Scheme (ATS) in Central Govt. & Public Sector Establishments.
6.
Trade Testing and Certification.
ROLE OF STATE GOVERNMENT
1.
School leavers (Pre-Service Programme)
2.
CTS        ATS
3.
Industrial workers-short term courses
4.
Supervisors of Industries
5.
Instructors of Training Providers
6.
Informal Workers
STRENGTH OF THE NATIONAL VOCATIONAL TRAINING SYSTEM
1.
Regular and increasing contribution to the stock of skilled manpower.
2.
Efforts to meet emerging requirements by introducing new courses.
3.
Uniform curriculum, procedures, regulations, trade testing and certification, national coverage.
4.
Credibility of the system which ensures mobility of labour.
5.
International recognition accorded to the system.
6.
A good structure having combination of institutional and Apprenticeship Training
7. Involvement of private sector and NGOs in setting up training institutions.
8. Infrastructure available for providing skill training at various levels.
9. Special focus on women vocational training and training schemes for the handicapped.
WEAKNESS OF EXISTING NATIONAL VOCATIONAL TRAINING SYSTEM
1.
Mismatch between skills requirement of the industry and skills produced by NVTS
2.
Emphasis on quantitative rather than qualitative aspect of training.
3.
State Government have limited financial support.
4.
Requirement of modern High Tech industries & services sectors as well as those of unorganized sector are not properly taken care of.
MAJOR INITIATIVES TO REMOVE WEAKNESSES
To align the courses as per market needs
1.
38 new trades under CTs introduced last year.
2.
Multiskilling and modular courses being introduced.
3.
13 new trades under ATs introduced last year.
4. New course on Home Management for Women being introduced.
5. Curriculum of 82 existing courses revised.
   
Public Private Partnership
1. To improve Co-operation between industry & ITI by formation of IMC.
2. Industry to act as a partner.
3. Formed in collaboration with industry association.
4. Members from State & Central Govt.
5. IMC functions under Steering Committee.
   
Strengthening VT facilities in the NE region and J & K
1.
For NE States and Sikkim, a project to set up 22 new it is and upgrade 35 existing it is at a cost of Rs. 100 crore is under implementation.
2.
A Centrally Sponsored scheme for strengthening of VT facilities in Jammu & Kashmir has been initiated at total cost of Rs. 37 crore.
3.
On approval of the Planning Commission this scheme has been amalgamated with the ongoing North East Project. The cost of the above two merged schemes will therefore, be Rs. 137 crore.
BUDGET SPEECH – 2004-05
Union Finance Minister in his Budget Speech 2004-05 has announced measures for up-gradation of 500 existing it is in the country to facilitate improvement of the quality of ITI training. The action has been initiated to take up the task in two phases as given below:

• First phase-upgradation of 100 it is into ‘Centres of Excellence’ from domestic resources.
• Second Phase : upgradation of 400 it is from World Bank assistance
The main objective of the scheme is to upgrade existing 100 ITI’s into centre of Excellence by:
1.
Introducing flexible multi-skilling modular courses as per the needs of Industry.
2.
Improving physical infrastructure of ITI’s
3.
By providing State of Art Equipment
4.
Training of Trainers
5. Active participation of Industry.
ITI Vs Centre of Excellence
  Existing ITI Proposed Centre of Excellence (CoE)
Duration of Training Fixed-depending upon the trade Flexible-multi entry & multi exit Board based Training followed by Specialised modules
Curriculum Development General in consultation with industry Active participation of Industry in designing and defining the level of competencies
Course Structure
1. Conventional trade related courses
2. Highly structured and does not offer flexibility in terms of content & duration

1. Board based multi-skill courses followed by Specialised courses on modular pattern.
2. Flexible & specialized courses as per the market needs related to particular cluster of industries in the vicinity.
Certification Awarded by Government Jointly by Industry & Government
PUBLIC PRIVATE PARTNERSHIP IN COES
Active participation of industry at every stage for development of CoE viz
1.
Forecast of new emerging training areas.
2.
Development of curriculum.
3.
Selection of trainees
4.
Training of Trainees
5. Guest Faculty from Industry
6. On the job training
7. Joint Testing & Certification
8. Placement of trainees passing out
9. Financial & other contribution/commitment.
DISTRIBUTION OF 100 ITIs
1.
ITI’s have been identified in consultation with State Govt.
2.
It is in proportion to the no. of existing Govt. ITI’s in the individual State.
3.
26 States/UTs are covered
4.
5 ITIs are covered in the Andhra Pradesh.
CRITERIA FOR SELECTION OF ITIs
ITI’s have been identified by the State/UT Government, keeping in view the following:
1.
A cluster of specific category of industry like automobile, electronics, chemical, IT etc should preferably be available in the surrounding areas of the selected ITIs.
2.
Selected ITI should have constituted IMC.
3.
Selected ITI should have proper surroundings, sufficient area for landscaping, well constructed buildings with adequate
4.
space for additions/alterations and other infrastructural facilities. The institute should be well connected by road / railway station.
STRUCTURE OF THE COURSES
The structure of the courses will be as follows:
1.
Broad based basic training in a number of skill areas related to the sector during the year.
2.
Two generic skill covered a) Entrepreneurship Skills b) Computer operation skill.
3.
Modular courses would be offered after the broad based training for the next 6 months as per the market needs.
Trade testing for the first year broad based basic training as well as modular courses of 06 months duration will be done at National level under the aegis of NCVT.
4.
Specialized modular courses as per need of the local industry would be organized for which the testing and certification will be done jointly by the State Government and Industry. Certificates will have recognition from NCVT.
5. Provision for multi entry and multi exit.
6.
Training on the factory shop floor should constitute at least 25-40% of the curriculum. Modalities for this purpose should be worked out in consultation with Industry Associations.
PRESENT STATUS OF COURSE CURRICULA
Sectors Present Status
Production & Manufacturing Curricula Finalised States requested to implement Broad Based Basic Training w.e.f August, 2005
Electrical Curricula circulated for approval/comments of NCVT members. States requested to take advance action for implementation.
Electronics Curricula circulated for approval/comments of NCVT members. States requested to take advance action for implementation.
Automobile Curricula circulated for approval/comments of NCVT members. Comments received. Being finalized.
Information Technology Curricula developed. Comments received from Department of Electronics.
Leather Goods & Footwear Curricula developed.
Refrigeration & Airconditioning, Instrumentation, Chemical Tourism Being developed
COMPONENTS OF THE SCHEME
1.
Civil works (Rs. 40 lakh/CoE)
2.
Procurement of equipment (Rs. 75 lak/ CoE)
3.
Other expenditure (Rs 45 lak CoE)
  • Honorarium for contract/guest faculty as well as payment of Honorarium to existing staff wherever required
• Technical assistance for training of trainers and management personal.
• Misc. expenditure towards curriculum development, development/ procurement of training material, Office expenses.
FUNDING PATTERN & COST OF THE SCHEME
1.
Up gradation of 100 ITI’s from domestic resources
2.
Founding pattern in the ratio of 75:25 between Centre and State Governments. The release of Central share and State share of funds will be up on pro rata basis in the ratio of 75:25.
3.
Total cost of scheme is Rs. 160 crores. An amount of Rs. 20 crore (as central share) is available. Additional funds, if required will be made available
PHYSICAL TARGET
• 100 trainees proposed to be trained in each CoE.
• A total of 10,000 trainees proposed to be trained per year in 100 CoEs
State – Andhra Pradesh Total Number of it is covered = Five

1. Mallepally – Hyd
2. ITI (New) Visakhapatnam
3. Kadapa
4. Patancheru, Medak
5. Malugu Road Warangal

BACKGROUND NOTE ON THE UPGRADATION OF 500 ITIs AS “CENTRE OF EXCELLENCE”
Keeping in view the importance of Vocational Training, Union Finance Minister, in the Budget speech 2004-05 has stressed that skills imparted by ITIs must keep pace with the technological demands of the Industry and the expanding universe of knowledge to produce world class workforce. He also welcomed Chamber of Commerce and Industry to join hands with the Government and create a public-private partnership model for designing and implementing the scheme. In this connection, Govt. of India proposes to launch a programme in the central sector to upgrade 500 ITIs over the next five years at the rate of 100 ITIs a year.
Accordingly, DGE & T, MoL has proposed to take up a scheme to upgrade the 500 existing ITIs in to “Centres of Excellence”. The main thrust of the programme will be to provide appropriate infrastructure, equipment, update syllabi and introduce new trades. These Centre of Excellence will cater to the skill requirements of the cluster of Industries in the particular areas by organizing multi-skilling courses on modular pattern.
What is a “Centre of Excellence”
According to the website related to ‘Centres of Vocational Excellence’, UK (http://cove.ise.gov.uk/index.cfm), a ‘Centre of Excellence’ is special institute for vocational training characterized by close links between Institutes, other training providers, industry, other employment interests and communities. It aims to produce appropriately qualified and skilled workers with excellent employment and career prospects which meet the needs of the economy.
Centre of Excellence will focus on enhancing the skills and careers of those already in work, enhancing the employability of new entrants to the labour market, and the employment prospects of those seeking employment (including self-employment). It will enable development, maintenance and delivery of high quality, specialist vocational training across a range of new and traditional occupations. It will be innovative in delivering training that develops both special and related general skills.
Centre of Excellence will work closely with business and industry to deliver industry relevant, economically important provision of a high standard.
Objective of the Schemes
The main objective is to update the existing ITIs into “Centre of Excellence” for producing multi skilled workforce of world standard by:
  • Introduction of new multi-skilling modular courses as per needs of industry and to provide employable skills.
  • Improvement of physical infrastructure facilities like buildings, equipment etc.
  • Adoption of new training technology with close involvement of industry and other stakeholders in planning and implementation of training programmes.
  • Empowering these Centres by providing sufficient autonomy in academic, administrative, financial and management matters.
  • Generating Income and investment for institutional development.
  • Introducing short-term training programme for industrial / service sector personnel as per their specific requirements.
  • Building up partnership with the nearby industries & setting up of Institute Management Committees (IMCs) to make training wholly demand driven.
Coverage of the Scheme
A total of 100 existing ITIs in various States/UTs (except J & K and NE states – as there is separate plan scheme for these States) for upgradation as “Centres of Excellence”, will be covered under the proposed scheme.
Funding Pattern
As advised by M/o Finance, out of abovementioned 500 ITIs, 100 ITIs are to be upgraded from domestic resources and the balance 400 from World Bank funding. The funding pattern for the above as approved by the Ministry of Finance, GOI is 75:25 to be shared by GOI and State Governments.
Activities to be taken up under the scheme
In order to take up above mentioned training programmes following activities will be taken up under the scheme.
  • Identification of ITIs by States for upgradation into ‘Centres of Excellence’. A total of 100 ITIs are to be taken up initially.
  • Identification of sector (as well as skill / modules) for upgradation of a particular ITI keeping in view the skill demands of the particular sector of Industry like information Technology, Automobile, Chemical, Electronics etc available in the surrounding areas of the selected ITIs.
  • Development of syllabi for the proposed courses (modular multi entry/multi exit & multi-skilling) in consultations with the
  • Stakeholders. The courses shall have provisions for vertical and lateral mobility of trainees.
  • Identification of requirement of training of trainers and other management personnel (by States) and lateral mobility of trainees.
  • Identification of requirement of training of trainers and other management personnel (by States and to provide them necessary training.
  • Identification of appropriate infrastructure & equipment (by States) and to make it available.
  • Identification of requirement of additional staff (on contractual/guest facult basis) and providing funds for their salary.
  • Providing funds for training material and other misc exp in view of the requirements of States.
  • Developing mechanism for skill testing and certification by industry / Industry associations.
Components of the Schemes
  • Civil Works : Civil Works for carrying out additions/alterations and renovations in the existing ITIs.
  • Equipment : Modernisation/providing of equipment as well as required furniture.
  • Honararium etc to faculty : provision of funds for Guest faculty, Contractual staff as well as payment of Honararium to existing staff wherever required.
  • Technical Assistance : retraining of staff and other management personnel including training in new areas as per requirement.
  • Misc/ other works : curriculum development, training material and misc items such as books, surveys, conducting workshop seminar etc. This would include other recurring exp as well as other works not covered under the civil works and equipment.
Financial details (per ITI)
Civil works Rs. 40.00 Lakh
Equipment Rs. 75.00 Lakh
Honorarium etc to faculty
Training of Trainees
Misc Expenditure
Rs. 45.00 Lakh
Total Rs. 160.00 Lakh

Guidelines for selection of ITIs
  • A cluster of specific category of industry like automobile, electronics, chemical, information Technology etc should preferably be available in the surrounding areas of the selected ITIs.
  • Academic, administrative, financial and management autonomy will have to be provided to the selected ITIs for functioning of the Centres of Excellence.
  • The selected ITI should have constituted / constitute Institute Management Committees in order to create a public-private partnership model for implementing the scheme.
  • The selected ITI should have proper surroundings, sufficient area for landscaping, well constructed buildings with adequate space for additions/alterations and other infrastructural facilities. The institute should be well connected by road / railway station.
CENTRES OF EXCELLENCE
The location of ITIs to be upgraded as ‘Centres of Excellence’ will be identified in consultation with the respective State Governments.
  • The training courses to be taken up in the ‘Centres of Excellence’ will cater to meet the skill demands of particular sector of Industry like information Technology, Automobile, Chemical, Electronics etc available in the surrounding areas of the selected ITIs. For example, ITI Gurgoan having a luster of Automobile and IT sector if covered under the scheme, will focus mainly on the training programmes relating to either of the two sectors.

  • In case a particular ITI selected for upgradation in IT sector is presently having trades like COPA and ITESM then the ITI will discontinue training in the aforementioned trades (COPA and ITESM). The infrastructure of COPA and ITESM may be utilized by Centres of Excellence. Additional identified infrastructure will be provided to Centres of Excellence as per provisions in the scheme. ITI may however, continue to organize training in other existing trades.

  • The ‘Centre of Excellence’ will be Nodal/Apex Institute in the State for the particular sector and will provide necessary assistance including training/retaining of trainers.
  • In case a particular sector is taken up in two or more than two ‘Centres of Excellence’, then these centres will cater to the it is in specific geographical area of the State.
  • structure of the courses to be offered will be as follows :
    1. Broad based multi-skill courses on a modular pattern instead of conventional trade related courses.

    2. Short term courses as per need of the local industry would be offered after the broad based training.
        Training/retraining of trainers of ITIs.

    3. Multi-entry and multi-exit flexible courses

    4. Lateral and vertical mobility of trainees

  • The new training technology to be adopted in the ‘Centres of Excellence’ for imparting training will have the following features :
    • Focus on level of competencies to enable the individual to attain qualification for performing a job with the desired precision.
    • Emphasis on learning through use of computers.

  • The level of the Competencie s of the courses will be determined in consultation with the industry as per their demand.

  • The skill standards for the certification of the competencies would be developed as per the demand of the industry keeping in view the competency standards prescribed by advanced countries such as NVQS developed by Australia, UK.

  • The testing and certification would be done jointly by industry and Government to avoid the gap between skill requirements and the competency levels attained by the trainees. All India tests under the aegis of NCVT will be organized for the broad based basic training and some selected modules to have uniformity in the syllabus and also to provide mobility to the trainees. The industry association of the particular areas should actively involve in evaluation of the skills of trainees at the end of the training period. The theory part can be taken up the ITI/Government. A mechanism for joint certification (or two certificates-one from industry and one from institute) needs to be developed.

  • A comparison of a Government ITI with that of the Centre of Excellence is given in Appendix.

Training of trainers
The requirement of training faculty for the Centres of Excellence will be most by retraining of the existing faculty in the institutes of national repute offering similar courses and through short term training programme on Practice of Teaching at DGE & T institutes.
Industry of train trainers of training institute in the new emerging areas including costly machines not available in ITIs.
Guest faculty
Industry to provide guest faculty on regular basis (may be one/two session a week) for keeping the trainees and trainers abreast of the latest techniques / trends of the industry.

On-the job training
The industry to provide on-the-job training to the trainees of ITIs for a sufficient period (may be for 2-4 weeks depending upon the duration of course).

Donation of equipment
Industry/Industry association may donate equipment not available in the it is and required for the training programme.

Training and certification
Industry to actively participate in testing and certification of trainees.
States have been requested to identify ITIs having cluster of particular industry. The Industry association of the particular areas should actively involve in evaluation of the skills of trainees at the end of the training period. The theory part can be taken up the ITI/Government. A mechanism for joint certification (or two certificates – one from industry and one from institute) needs to be developed.
Annexure-I
Conventional ITI Vs Centre of Excellence
  Existing (conventional) ITI Proposed “Centre of Excellence”
Duration of training
Fixed – depending upon the trade
Flexible multi – entry and multi – exit One year broad based training followed by specialized modules as per skill requirements and duration of 3 to 6 months each
Curriculum development General in consultation with industry
More active participation of industry in designing and defining the level of competencies
Course structure g.
Conventional trade related courses 1. Broad based multi-skill courses on a modular pattern.
2. Short tem modular courses in specific areas as per need     of the industry after broad based trainin
  Various diversified from “Book Binding” to “computers” available in the same ITI which may not be as per skill needs of the industry in the surrounding region. Will organize course related to a particular cluster of industries available in the locality. Like ITI Gurgoan having a cluster of Automobile and IT sector, if covered under the scheme, will focus on training programmes relating to either of the two sectors.
Certification Awarded by NCVT Jointly by industry and Government to encourage industry involvement and participation.
Annexure-II
UPGRADATION OF THE ITIs INTO ‘CENTRES OF EXCELLENCE’
1. Name of the State / UT : ______________________________
2. No. of Govt. ITI selected for upgradation by Domestic Funding : __________________
3. Whether the State Govt. has accorded its approved for sharing : Yes / No
    the cost 75:25 as per our letter dated 17th August 2004
4. If the answer at Sl No (3) above is ‘NO’, Please indicate the letter No.
    & date by which State Director has requested their Govt. for approval ____________________________
5. Name of the Nodal Officer with complete address (to remain :
    in position for the next three years)
Name of the Nodal Officer Designation
Complete Address Phone No (o) Phone No (R) E-mail address
         
Skill areas and modules as recommended by Local Industries / IMC
S.No. Name of the ITI Whether industry / IMC consulted in identification of sector, skill areas and modules Name of Industries/ associations consulted Sector Identified for upgradation as recommended by Industry/ IMC Whether IMC constituted If not, then the likely date of its constitution Existing trades likely to be discontinued as a result of upgradation in ITI
Yes

No

1.              
2.              
3.              
4.              
5.              
6.              
7.              
Annexure-III
BASIC SKILLS / MODULES AS RECOMMENDED BY INDUSTRIES FOR UPGRADATION OF ITIs INTO ‘CENTRE OF EXCELLENCE’
Name of the State : ______________________________
Name of ITI : ______________________________
Basic skills for the first year (equal duration of 4/6/8 weeks for each basic skill for proper rotation) Modules for the training beyond first year (equal duration of 12/24 weeks duration for each module)
Basic skills Duration in weeks Modules Duration in weeks Modules Duration in weeks
     
     
   

 

 

 

 

 

MEMORANDUM OF UNDERSTANDING BETWEEN MINISTRY OF LABOUR & EMPLOYMENT, GOVERNMENT OF INDIA AND THE STATE GOVERNMENT OF ……………………………….
UPGRADATION OF INDUSTRIAL TRAINING INSTITUTES (ITIs)
INTO ‘CENTRES OF EXCELLENCE’
THIS MEMORANDUM OF UNDERSTANDING is made between Ministry of Labour & Employment, Government of India and the State Government of ………………………….. to affirm the joint commitment of the two parties in connection with the Centrally Sponsored Plan scheme for Upgradation of Industrial Training Institute (ITIs) into Centres of Excellence (CoE). The salient features of the schemes are given at Annexure
ROLES AND RESPONSIBILITIES OF GOVERNMENT OF INDIA
Government of India will provide necessary support to the States/UTs in the following forms for implementing the scheme.
(a)   Coordination with all Stakeholders for effective planning / implementation of the scheme.
(b)   Provision of adequate budget for Central Government share for the scheme as envisaged in para 9 and 10 of Annexure to this        MoU of Annexure to this MOU (page 5).
(c)   Release of central share of funds in suitable installments as envisaged in para 11 of Annexure to this MOU (page 5,6).
(d)   Development of curriculum at National level.
(e)   Obtaining approval of National Council for Vocational Training (NCVT) etc wherever required.
(f)   Trade testing and certification at National level
(g)  Assisting States in staff development
(h)  Monitoring of progress of project
(i)   Organising periodical meetings with the States/UTs to solve their problems if any in implementing the scheme and also to review        the progress
ROLES AND RESPONSIBILITIES OF STATES/UTs
States/UTs will be mainly responsible for implementation and monitoring of the scheme in the CoEs setup in their State/UTs. The release of Central share and State share of funds would be on pro rata basis in the ratio of 75:25. Their responsibilities will include.
(a)   Consultations with industry/industry associations in formulating proposals and furnishing the same to Directorate General of         Employment & training (DGE & T).
(b)   Development of course curriculum, trade testing / certification in cooperation with local industry for the courses taken up in the        last phase of training.
(c)   Identification of training needs of trainers and deputing them for training.
(d)   Provision of adequate budget for State Government share for the scheme as envisaged in para 9, 10 and 11 of Annexure to this        MOU (Page 5,6).
(e)  Ensure implementation of various activities of the scheme in time bound manner so as to adhere to the Time Schedule. The       activities needing special attention (i) establishment of IMCs (ii) provision of necessary infrastructure – procurement of tools and       equipment, civil works and provision of trained trainers for the training programme.
(f)   Adequate empowerment of the IMCs to enable them to discharge their roles and responsibilities effectively as envisaged in para       3 of Annexure to this MOU (page 3).
(g)  Monitoring progress of implementation of the scheme at state level and furnishing periodical reports to DGE&T Hq.
(h)  Tracking of graduates of ITIs :-
SUSTAINABILITY OF THE SCHEME AFTER THE PROJECT PERIOD
In order to ensure sustainability of the scheme after the project period the State Government of …………

(a) Shall ensure that sufficient funds are available for consumables. Tuition fees may be enhanced to generate      additional revenue for this purpose, if necessary.
(b) Allow industry to sponsor candidates for training in these centres on payment basis to generate higher revenue.
(c) Shall ensure that the proportion of expenditure on salary is limited to 80% of the total recurring expenditure.

Period of MOU
This Memorandum of Understanding will be effective upto three years beyond the project period, that is upto March 2002. Implementation of the MoU would be monitored on six monthly basis.

Through this memorandum of Understanding, both parties affirm their commitment to carry out the activities and achieve the objectives mutually agreed upon in this memorandum.
Signed at New Delhi this day of ……………….. 2005.
For and on behalf of
Government of ……

(…………….)
Secretary
Government of …….

For and on behalf of
Government of India

(DG/JS)
Director General/Joint Secretary
DGE&T, Ministry of Labour &Employment,
Government of India.
SALIENT FEATURES OF THE SCHEME
Upgradation of ITIs into Centres of Excellence
Objectives of the Scheme
The objective is to upgrade the existing ITIs into “Centres of Excellences (CoEs)” for producing multi skilled workforce of world standard by :

(a) Introducing new multi-skilling modular courses as per needs of industry.
(b) Improving physical infrastructure facilities like buildings, equipment etc.
(c) Adopting new training technology with close involvement of industry and other stakeholders in planning and      implementation of training programmes.
(d) Empowering these Centres by providing sufficient autonomy in academic, administrative, financial and management      dimensions.
(e) Building up partnership with the nearby industries & setting up of Institute Management Committees (IMCs) to make      training wholly demand driven

Project Output
It is envisaged that after availability of appropriate infrastructure 100 trainees will be trained in each CoE.
Public Private Partnership-Institute Management Committee (IMC)
Public private partnership for the Centres of Excellence will be in the form of active participation of the Industry in every stage of designing and implementing the Scheme, through constitution of Institute Management Committee (IMC) for each ITI proposed to be upgraded. The IMC comprises members from State Government, Industry etc. with a representative from an Industry of repute as its Chairman. Broadly, the IMC will have following roles and responsibilities.

(a) Generation of revenue through various means such as projects from industry and to use these funds as decided by      them.
(b) Forecast of new emerging training areas
(c) Development of curriculum
(d) Selection of trainees
(e) Training of trainers
(f) Appointment of Contract faculty/Guest faculty
(g) On the job training
(h) Testing and certification
(i) Placement of trainees passing out from the CoE.

In addition to above industry/industry associations may make financial contribution and/or donate equipment to the CoE.

The States will empower the IMCs adequately to enable them to discharge their abovementioned roles and responsibilities
effectively which may include powers to appoint contract faculty/guest faculty and clearing the proposals for civil works and equipment before forwarding the same to Government of India for release of funds.

Structure of the courses
The structure of the courses to be offered will be as follows :

(a) Broad based basic training in a number of skill areas related to the sector during first year.
(b) Short term modular courses would be offered after the broad based training for the next 6 months.
(c) The trade testing for the first year broad based basic training as well as modular courses for the first 6 months during      second year will be done at National level under the aegis of National Council for Vocational Training (NCVT).
(d) Specialized modular courses as per need of the local industry would be organized for the last phase of training for      which the testing and certification will be done jointly by the State Government and Industry. These certificates shall be      recognized by NCVT.
(e) Training on the factory shop floor should constitute atleast 25-40% of the curriculum. Modalities for this purpose shall      be worked out in consultations with the industry associations.

Criteria for selecting the States/ITIs
The identification of ITIs within a State/UT is to be done by the State / UT Government, keeping in view the following guidelines :

(a) A cluster of specific category of industry like automobile, electronics, chemical, Information Technology etc should      preferably be available in the surrounding areas of the selected ITIs.
(b) The selected ITI should constitute Institute Management Committee in order to create a public-private partnership      model for implementing the scheme.
(c) The selected ITI should have proper surroundings, sufficient area for landscaping, well constructed buildings with      adequate space for additions/alterations and other infrastructural facilities. The institute should be well connected by      road/railway station.
The list of ITIs identified for the State/UT of …………….. is given below :

Components of the scheme

(a) Civil works for carrying out additions/alterations and renovations in the existing ITIs
(b) Procurement of equipment
(c) Honorarium for contract/guest faculty/staff as well as payment of Honorarium to existing staff wherever required.
(d) Technical assistance for training of trainers and management personnel.
(e) Miscellaneous expenditure towards curriculum development, development/ procurement of training material, Office      expenses, MIS, conducting surveys/ workshop/seminars and tracer studies of graduates of CoE.

Utilisation/Creation of infrastructure

(a) Existing infrastructure will be utilized for the CoE to the extent possible by reorientation of the training courses relevant      to the selected sector.
(b) Equipment required for basic skill areas are expected to be available in the identified ITI. Alternatively, States may      transfer required trade along with equipment and instructor from nearby ITI to the identified ITI.
(c) New investment will normally be required for development of infrastructure for the modular courses. Wherever required      new investment will also be made for strengthening of infrastructure for the Basic Training.

Financial details (per CoE)
Civil works Rs.40.00 Lakh
Equipment Rs. 75.00 Lakh
Other Expenditure Rs. 45.00 Lakh
Honorarium etc to faculty
Training to Trainers
Mist expenditure
Total Rs. 160.00 Lakh
Sharing of expenditure between Centre and State Government
The Central and State Governments would share the above expenditure in the ratio of 75:25. The release of Central Share and State share of funds would be on pro rata basis in the ratio of 75:25. The release of central share would be linked with the physical progress as well as utilization of the earlier installment.
Release of funds in suitable instalments
Mechanism/Mode of release of funds under various subheads
For construction works :
The central share of funds shall be released to State/UT Governments as per details given below :

(a) 1st Installment : 25% of sanctioned amount on submission of estimates and drawings.
(b) IInd Installment : Upto 50% of sanctioned amount based on the documentary evidence/photographs indicating      progress of work/ sample survey by DGE&T
(c) IIIrd Installment : 25% of balance amount based on actual expenditure.

For procurement of Equipment :
The central share of funds shall be released to State/UT Governments as per details given below :

(a) 10% on submission of the equipment list.
(b) 40% on documentary evidence of placement of supply order and
(c) 50% on proof of supply & installation / commissioning of the equipment.

For “Other expenditure
  Components Mechanism/Mode of Payment
1. Instructors/Staff Training Central share of funds will be released to States on receipt of their proposal.
2. Curriculum Development Local Level Central share of funds will be released to States on receipt of their proposal.
3. Salary of Contractual Staff/guest faculty Central share of funds will be released to States bi- Annually (six monthly basis) on receipt of proposal.
4. Raw material For the first year central share of funds will be released to States on receipt of proposal. For next FY funds will be released after receipt of Utilisation Certificate (UC)
5. Office expenditure For the first year central share of funds will be released to States on receipt of proposal. For next FY funds will be released after receipt of UC
6. Honorarium of existing faculty/staff For the first year central share of funds will be released to States on receipt of proposal. For next FY funds will be released after receipt of UC
States will make provision of 25% of their share in their budget and certify the same and the time of making request for release of each installment. Also they will furnish ‘Utilisation Certififate’ of the total amount (i.e. central and state share of previous installment in prescribed format while requesting for release of next installment
Time schedule
2005-06
Commencement of basic training on ……. ITIs in August 2005.
2006-07
(a) Commencement of basic training in remaining…ITIs in August 2006.
(b) Commencement of second year modular training in … ITIs.
2007-08
Commencement of second year modular training in remaining …. ITIs.
2008-09
Conclusion of the scheme.
Evaluation/success criteria – The Evaluation Methodology
The efficiency of ‘Centres of Excellence’ shall be measured as a combination of the internal and external efficiency as per details given below :

Internal efficiency
The internal efficiency deals with performance and outputs of Centres of Excellence with regard to :

a) the numbers of students enrolled, retained and successfully graduated, and
b) utilization of capital assets and human resources in producing these outputs.

Indicatory of internal efficiency of ‘Centres of Excellence’
  Components Mechanism/Mode of Payment
1. Student retention rate Per cent of students who appeared for a trade test out of those enrolled at the beginning of the course
2. Student graduation rate Per cent of students who passed the trade test out of those appeared for the trade test
3. Utilization of the CoE seating capacity Per cent of total number of sanctioned seats filled at the time of enrolment
4. Raw material For the first year central share of funds will be released to States on receipt of proposal. For next FY funds will be released after receipt of Utilisation Certificate (UC)
5. Overall internal efficiency Per cent of the total number of sanctioned seats that produce graduates
6. Staff utilization
Ratio : Full-time students of all staff
Ratio : Full-time students to Instructors
External efficiency
The external efficiency deals with outcomes that reflect the impact of training on employability of graduates and therefore can only partially be enrolled by training institutes. Table below provides a structure of the external efficiency indicatory.
Indicators of external efficiency of ‘Centres of Excellence’
  Components Mechanism/Mode of Payment
1.
Labour market success of graduates
(i) per cent of graduates who are directly associated (in wage or self employment) with the cluster of     industries attached with the particular Centres of Excellence.
(ii) per cent of graduates who are in wage employment, or self-employed, or joined family business     (not associated with the industries involved in particular ‘Centre of Excellence’)
2.
Satisfaction of graduates with the training received
Per cent of graduates who reported high satisfaction or satisfaction with the quality of training
3.
Satisfaction of employers with the skills of graduates
Per cent of surveyed employers reported high satisfaction with the skills of graduates that they employ
4.
Other cooperation between Centres of Excellence and industry i.e. identification of training needs, development of curriculum, donation of machinery and equipment deputation of guest faculty / experts, associated with State in testing and certification etc
Percent of Centres of Excellence ….. receive cooperation from industry in various forms as envisaged in the scheme