The fading significance of ITIs

Updated on: Monday, October 31, 2011

Are Industrial Training Institutes (ITIs) losing sheen in India? There are very many indications to the emergence of such a trend disturbing the dynamics of an ideal industrial environment that requires workforce in technical, supervisory and managerial positions in the right proportion.

This is despite the fact that industries have been increasingly facing severe shortage of technicians at the shop floor level over the years.

Government and government-aided ITIs have been unable to meet the industry demand, and the situation impedes the progress of manufacturing sector.

In its search for solution, the Central Government did put in place a private-public partnership (PPP) to upgrade ITIs to international standards, at the start of the current Plan period. In the 2007-08 budget, a Rs. 750 crore-package was announced for the industry to run over 300 ITIs under PPP. Under the package, an industrial house coming forward to run an ITI is entitled to an interest-free loan of Rs. 2.5 crore.

Later that year, the Centre approved World Bank-funded Rs. 1,581 crore vocational training programmes for upgrading quality of education at 400 ITIs, to improve the employability of their students. The Cabinet Committee on Economic Affairs (CCEA) cleared the implementation of the Vocational Training Improvement project, under which 75 per cent of the cost would be borne by the Centre and the balance by State governments. The Federation of Indian Chambers of Commerce and Industry wants more say for patronising industries in revamping curriculum suiting their respective individual requirement, and in regulating admission and fee structure, besides tax holiday.

Nevertheless, the concept of self-financing ITIs is a failure, unlike in the case of polytechnics and engineering colleges. The obvious reason is that there are simply no takers. In fact, in Tamil Nadu, ITI qualification is rated on par with the vocational stream in higher secondary system, for lateral entry into second-year in polytechnics. But then, now that the number of polytechnics, as in the case of engineering colleges, has exceeded 500, candidates with Class X qualification have a natural preference for polytechnics as gaining admission has become easier with lesser marks fixed as minimum eligibility.

Even entities that run ITIs as societal service struggle to fill vacancies. “We are unable to find candidates in the ITIs we run at Manapparai, Chennai and Tindivanam. Though highly remunerative, identifying students for carpentry trade is all the more difficult,” said Rev. Bro. A. Paulraj, Provincial, Montfort Brothers of St. Gabriel, Tiruchi Province.

Skills for Progress (SKIP), an all India Association of Private Technical/Vocational Training Institutions, with which Montfort ITIs are associated, has been reaching out with employment and self-employment training programmes to marginalised community in all States through 200 regular members and 20 associate members. Every year over 25,000 young men and women, more than half of them from rural areas, are trained in about 50 skills in the member institutions.

About 40 per cent of them are women trained in appropriate technologies and income generating activities.

Yet, the demand for workforce is several times more. According to S. Sridharan, president of Tiruchi District Tiny and Small Scale Industries' Association, though engineering graduates are available in plenty at cheaper costs, their skill orientation is not sufficient.
Ancillary units hit

Industries prefer only those from ITI and polytechnic backgrounds. S. Sangapillai, principal, Seshasayee Institute of Technology, Tiruchi, explains that the uneven growth of ITIs, polytechnics and engineering colleges has had a telling effect on the ancillary units of Bharat Heavy Electricals Limited, Tiruchi. Faced with acute manpower shortage at the level of workers, increasing attrition rate, and the limitations in sourcing manpower from ITIs, ancillary industries are approaching polytechnics with proposals to sponsor training costs of candidates for specific industry requirements in the areas of welding, fitting, winding and so on.

Tiruchi-based G.B. Engineering Enterprises Private Limited, a boiler manufacturer, has set a precedent in the central districts by starting an Industrial Training Centre by itself at Pudukudi in Thanjavur district. The industry is looking forward to recruiting the entire first batch of candidates in 2012.

Under a scheme that the Ministry of Labour and Employment implements through its Directorate General of Employment and Training, expenditure incurred for modular skill-based programmes offered for candidates with a pass in Class VIII, under the aegis of NCVT (National Council for Vocational Training), is refunded to the sponsors. Small scale industries are shifting their strategy to retain manpower through such arrangements with polytechnics rather than continue their dependence with labour contractors.

There is immense scope for industries to derive utility of the scheme through systematic planning to source manpower. But the long-term solution lies in a policy decision that would make ITIs an attractive option for Class X-passed candidates, explains Mr. Sangapillai.

The fading significance of ITIs

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