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Skill Minister urges PSUs to increase participation in Apprenticeship


New Delhi, December 5, 2019: Dr. Mahendra Nath Pandey, Minister of Skill Development & Entrepreneurship (MSDE) urged Central Public Sector companies to significantly increase their participation in the government’s apprenticeship program at a National Seminar held to spread awareness and participation in Apprenticeship Programme, today. The seminar was organised by MSDE in collaboration with the Standing Conference of Public Enterprises (SCOPE) and Department of Public Enterprises (DPE), with an aim of increasing participation in the government’s apprenticeship scheme in the service sector by government-run companies.

The meeting was graced by senior government officials including Shri. R. K. Singh, Hon’ble Minister of State, MSDE; Dr. K.P. Krishnan, Secretary, MSDE; among other dignitaries. The ministry has taken several efforts to increase the number of apprentices hired by enterprises in the country. The aim is to fill the gap in supply and demand for skilled workforce and meet the aspirations of the Indian youth through gaining on-the-job training and securing better opportunities for employment. Most PSUs are hiring apprentices for technical and manufacturing job roles.

However, the number of apprentices in the service sector is lagging behind. Senior executives of major PSUs, attending the event, were also urged to hire students who have cleared skill programmes under Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a flagship scheme of MSDE implemented by National Skill Development Corporation (NSDC). The students of longterm programmes offered by technical colleges under the All India Council of Technical Education and Industrial Training Institutes run by the Directorate General of Training will also be hired as apprentices.

Detailing the benefits of the apprenticeship scheme, Dr. Mahendra Nath Pandey, Hon’ble Minister for Skill Development & Entrepreneurship, said, “Central Public Sector Undertakings (CPSUs) are instrumental in sustaining self-reliant economic growth and play a vital role in generating employment opportunities for skilled professionals. I strongly urge them to come forward, increase their engagement with apprentices and build their potential to be industry ready. This together will lead to the success of the enterprises, apprentices and will lead to fulfilling the aspirations of New India. It is also my appeal to all the enterprises to give due respect to these young apprentices, treat them at par with their employees and recognise them as the torchbearers of the overall growth and progress.”

Shri R.K. Singh, Hon’ble Minister of State for Skill Development & Entrepreneurship (MSDE), said, “We have a substantial proof of the positive impact apprentices create in the manufacturing and service industry. Countries like Germany and Japan have proven apprenticeship as an effective model improving links between industry and training institutions. Through such examples and by urging our CPSUs, we can create pathways for industrial development and contribute to India’s economic growth. We want to strengthen the Indian apprenticeship system to impart formal training across sectors in order to rightly skill the youth and provide them opportunities for livelihood.” The government has brought significant reforms to the apprenticeship rules to drive greater participation in the program. These reforms include:

● Upper limit for engaging apprentices increased from 10% to 15%

● Size limit of an establishment with mandatory obligation to engage apprentices lowered from 40 to 30

● Payment of stipend for 1st year has been fixed rather than linking it to minimum wages, 10% to 15% hike in stipend for 2nd and 3rd year to apprentice

● Duration of apprenticeship training for Optional Trade can be from 6 months to 36 months

● The industry has the option to design and implement their own Apprenticeship programs

● Under NAPS, the establishments / industry can get reimbursement upto 25% of the stipend paid to the apprentices

PSUs are present in almost every sector and are significant contributors to the Indian economy, crucial to the employment generation. The top 100 PSUs in the country represent 20% of the total manpower and are utilizing 30% of the apprenticeship training potential. The priority sectors in almost 30 PSUs are Defence, Aerospace, Manufacturing, Service, Heavy industries & Chemicals and they engage 66% of the current total apprentices engagement.

Central Public Sector Enterprises (CPSEs) under Ministry of Petroleum & Natural Gas (MoPNG) have engaged 10.21% of total workforce as apprentices which itself embarks the need to call upon other CPSUs and ancillary units working under them to come forward and work collaboratively with MSDE. Therefore, PSUs play a critical role in the success of the apprenticeship program being run by the MSDE. A few PSUs present at the seminar also shared their success stories of the candidates receiving apprenticeship training and successfully getting employed.

PSUs like Air India Transport, Andrew Yule, Artificial Limbs Manufacturing, BEL, BHEL, Housing & Urban Development Corporation and Madras Fertilizers have been engaging 15% of their total staff strength as apprentices which is more than the desirable limit.

The event also witnessed Memorandum of Understanding (MoU) signing between MSDE and Standing Conference of Public Enterprises (SCOPE), an apex body of Public Sector Enterprises, to further promote and expand apprenticeship training in CPSUs.

About Ministry of Skill Development and Entrepreneurship (MSDE) MSDE was formed on November 9, 2014 by the Government of India to focus on enhancing employability of skills. Since its inception, MSDE has undertaken significant initiatives and reforms in terms of formalizing the policy, framework and standards; launching of new programs and schemes; creating new infrastructure and upgrading the existing institutions; partnering with States; engaging with industries and building societal acceptance and aspirations for skills.

The Ministry aims to bridge the gap between demand and supply of skilled manpower to build new skills and innovation not only for existing jobs but also for jobs that are to be created. Till date, more than three crore people have been trained under Skill India. Under its flagship programme, Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2016-2020, the Ministry has trained more than 50 lakh candidates so far.