Finance Minister Nirmala Sitharaman presented her seventh consecutive Budget in Parliament last month. She announced key employment schemes including skilling of 20 lakh youth and upgrading 1,000 Industrial Training Institutes (ITIs).
1,000 ITIs To Be Upgraded
As per the Budget, 1,000 ITIs will be upgraded under a hub-and-spoke arrangement over a duration of five years. This new Centrally Sponsored Scheme will be implemented in collaboration with state governments and industry partners.
Course Content And Design
The course content and design will be aligned with industry needs, with a greater focus on practical learning. The institutes will emphasize outcome-oriented and quality skilling.
Total Outlay
A total outlay of Rs 60,000 crore is allocated over five years. The Government of India will provide Rs 30,000 crore, state governments will contribute Rs 20,000 crore, and industry will provide Rs 10,000 crore, including Corporate Social Responsibility (CSR) funding.
200 Hubs and 800 Spoke ITIs
The government plans to develop 200 hubs and 800 spoke ITIs, all with industry collaboration. Existing courses will be re-designed and reviewed, and new courses will be developed. These courses will range from 1 to 2 years in duration across all 1,000 ITIs, with short-term specialized courses offered at hub ITIs.
Capacity Building
The government will also focus on capacity augmentation of five national institutes for training trainers. An estimated 20 lakh students are expected to benefit over a 5-year period.
Ms. Sitharaman, however, announced that an internship allowance of Rs 5,000 per month and a one-time assistance of Rs 6,000 will be provided under the new scheme. Companies facilitating internships will bear the cost of training the interns and may use their CSR funds for this purpose. Interns will gain exposure to real-life environments and receive a monthly allowance, she said.