India: Skills Development for Inclusive Growth

Sovereign Project | 45179-001 Status: Approved

Summary

India's National Skills Policy, 2009 aims to provide skills to 500 million people by 2022 by creating skills systems that have a high degree of inclusiveness in terms of gender, and rural versus urban, organized versus unorganized, and traditional versus contemporary jobs. The policy emphasizes that skills development initiatives should be dynamic, demand-based, and closely aligned with government policies on economic growth, employment generation, and social development. A three-tier institutional structure-consisting of (i) the National Council on Skill Development chaired by the Prime Minister, (ii) the National Skill Development Coordination Board chaired by the deputy chairman of the Planning Commission, and (iii) the National Skill Development Corporation (NSDC)-has been set up to fulfill this challenging mandate.

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Project Name Skills Development for Inclusive Growth
Project Number 45179-001
Country India
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8010-IND: Skill Development for Inclusive Growth
Technical Assistance Special Fund US$ 1.10 million
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Private sector development
Sector / Subsector

Education - Non-formal education - Technical and vocational education and training

Gender Equity and Mainstreaming Gender equity
Description

India's National Skills Policy, 2009 aims to provide skills to 500 million people by 2022 by creating skills systems that have a high degree of inclusiveness in terms of gender, and rural versus urban, organized versus unorganized, and traditional versus contemporary jobs. The policy emphasizes that skills development initiatives should be dynamic, demand-based, and closely aligned with government policies on economic growth, employment generation, and social development. A three-tier institutional structure-consisting of (i) the National Council on Skill Development chaired by the Prime Minister, (ii) the National Skill Development Coordination Board chaired by the deputy chairman of the Planning Commission, and (iii) the National Skill Development Corporation (NSDC)-has been set up to fulfill this challenging mandate.

NSDC has been set up as a public-private partnership (PPP) under Section 25 of the Companies Act, 1956 for catalyzing skills development through private entities, and to supplement and revitalize government-led vocational training and skills development programs that have been the norm until now. Its mandate is to provide skills to 150 million people by 2022.

ADB's Capacity Development Technical Assistance (TA) project will assist NSDC in establishing one sector skills council (SSC) each in the service sector (such as health care) and infrastructure sector (such as transport and logistics or construction). These are priority areas with significant employment and development potential. The following activities will be carried out under the TA to help make the SSCs operational: (i) identifying focus areas for skills development based on market analysis and stakeholder consultations by the SSCs; (ii) scoping the functions of the SSC; (iii) firming up the constitution (membership) and governance system of the SSC; (iv) preparing a financial sustainability model and budget estimates for the functioning of the SSC; and (v) preparing support documentation and toolkits to assist in the subsequent functioning of the SSC.

By building the capacity of two pilot SSCs, the TA will provide a template for other SSCs, thereby helping NSDC in strengthening the skills ecosystem. The TA will also support two states (as pilots) in linking their skills development missions more effectively with the new, PPP-driven skill development initiatives being promoted by NSDC and other government-run schemes at the national level.

Project Rationale and Linkage to Country/Regional Strategy India's Eleventh Five Year Plan (2007-2012) and the proposed Twelfth Five Year Plan (2012-2017) regard the 'generation of productive and gainful employment with decent working conditions and on a sufficient scale to absorb India's growing labour force' as being critical for facilitating inclusive growth and enhancing the overall productivity of the economy. Skill development is a high priority for both, the Government and the private sector in India. ADB's current country partnership strategy (2009-2012) focuses on supporting India's efforts towards facilitating inclusive and sustainable growth. The country operations business plan for 2012-2014 also highlights the importance of human development including skills development with a focus on the infrastructure sectors, productive employment generation, and enhanced health and social protection outcomes. The TA is therefore fully aligned with ADB's India program and Strategy 2020, and will prepare the groundwork for future ADB operations in the priority area of skill development in India.
Impact The National Skill Development Corporation's (NSDC) approach to skills development becomes sustainable.
Project Outcome
Description of Outcome NSDC's skills development institutional framework and operational guidelines developed for replication across more sectors.
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

1. Two pilot sector skills councils established.

2. Improved linkage between the skills development missions of two (pilot) states with national skills development initiatives.

3. Policy makers informed about best practices in skills development.

4. Project activities undertaken in a timely manner and within budget.

Status of Implementation Progress (Outputs, Activities, and Issues)

Overview of work accomplished under TA 8010 as of 30 June 2015

With Sector Skills Councils

1. Based on detailed consultations with the Healthcare Sector Skill Council (HSSC), the Construction Skill Development Council of India (CSDCI), and NSDC, and a review of international best practices, drafts of the following have been prepared:

(i) Manual for the development of National Occupational Standards (NOS) and Qualifications Packs (QP): This will provide a standard template to guide the development of future NOSs and QPs to be developed by the other SSCs, and those that are in the process of being established. This will help to assure quality and harmonize standards for skill development across all SSCs.

(ii) NOS and QPs for the job roles of Radiation Therapy Technologist and Central Sterilisation Department Technician under the HSSC: These NOSs and QPs will set the benchmark for developing similar NOSs and QPs for other job roles falling within the HSSC.

(iii) NOS and QPs for the job roles of Road Surveyor and Road Layering Supervisor under the CSDCI: These NOSs and QPs will set the benchmark for developing similar NOSs and QPs for other job roles falling within the CSDCI.

(iv) Quality Assurance (QA) Guidelines for the affiliation of assessment bodies and training providers pertaining to CSDCI and HSSC: In addition to strengthening the QA process for these 2 SSCs, these guidelines will provide templates that can be used by NSDC to harmonize the QA process for other SSCs.

(v) Outreach and campaign material for the CSDCI and HSSC: These comprise communication toolkits summarizing key messages to industry champions, sample brochures and pamphlets, and SMS messages that can be used to reach out to trainees, training providers, and potential employers. Career counselling and social awareness guides for the QPs of CSDCI and HSSC have also been prepared.

(vi) Study on the best practices and models of financing skill development initiatives through the PPP route, with special focus on ensuring the long-term sustainability of the SSCs.

(vii) Create a basic framework for Labor Market Information System (LMIS) for SSCs and SSDMs, with special reference to data capture and analysis.

(viii) Draft reports to guide SSCs and State Skill Development Missions on regular monitoring and evaluation of their skills training programs.

With the states of Kerala and Assam

2. Support is also being provided under TA 8010 to the Additional Skill Acquisition Program (ASAP), Government of Kerala (GOK), to link up more effectively with NSDC's national level PPP initiatives. (Under the $100 million loan number 3188, Supporting Kerala's Additional Skill Acquisition Program (ASAP) for Post-basic Education , which was approved on 19 November, 2014, ADB is assisting the Department of Higher Education, Government of Kerala, to provide market-driven vocational training and career counseling to students at the higher secondary (grades 11 and 12) and undergraduate levels so that they become more market-ready by the time they graduate. The ASAP Secretariat has been established under the Department of Higher Education as the implementing agency of this loan.) The ASAP Secretariat has signed memorandum of understanding with 9 SSCs (Automotive, Capital Goods, Gems and Jewelry, Health care, Hospitality, Media and Entertainment, Plumbing, Rubber, Telecommunication) and several industry associations (e.g., Kerala Master Printers Association; Institute of Cost Accountants of India (ICAI); Indian Dental Association; Kerala Press Academy; Kerala Master Printers' Association; National Association of Software and Services Companies (NASSMCOM)). Support is being provided under TA 8010 in the following areas:

(i) Getting information on NOS and QPs relevant for ASAP from SSCs and industry associations. This will help ASAP in conducting industry relevant training programs.

(ii) Coordinating with SSCs and industry associations to explore good internship opportunities for ASAP trainees.

(iii) Getting up-to-date information on demand for skilled labor, within and outside Kerala, from the SSCs and industry associations so that placement opportunities for ASAP certificate holders are increased.

(iv) Guiding the training service providers (TSPs) to improve training quality so that the competency levels specified in the NOS and QPs are attained. This will ensure that the outcomes of the training are measured in an objective manner, and help the ASAP secretariat in enforcing quality among the TSPs.

(v) Helping the ASAP team in designing relevant manuals for capturing the current status/standard of each TSP in areas such as curriculum mapping to QPs, courseware like curriculum, trainer guides, participant manuals, assessment manuals, and trainer aids, trainer numbers, trainer quality, training management, and management information system (MIS), etc. Based on these, focused capacity building support will be provided to the TSPs.

(vi) Coordinating and refining the model of Community Skill Parks (CSPs), and discussing this concept with NSDC and SSCs to create a PPP model whereby, O&M of these facilities can be handed over to the private sector.

3. The ASAP secretariat signed a memorandum of understanding with the NSDC on 10 December 2014. This is helping it to tap into NSDC's network of SSCs and experienced TSPs to raise the quality of skills training in Kerala, in particular, focusing on close alignment of curriculum to NOS and QPs, training of trainers, assessment of trainers and trainees, and industry placements and internships. This type of intensive engagement between ASAP and NSDC (and the SSCs and TSPs) provides a good example to other state governments of how to tap the potential of the private sector in skills training, and aligning skill development initiatives to the needs of the market.

4. A workshop was conducted on 30 January 2015 at The Lalit Hotel, Delhi, to provide an opportunity for the ASAP Secretariat to sign MOUs with relevant SSCs, and for ADB to refine the draft reports and manuals prepared under TA 8010. There were nearly 150 participants representing ASAP, NSDC, around 30 sector skills councils (SSCs), plus some national training providers. Mr. Dilip Chenoy, Managing Director of NSDC, gave the keynote address. He highlighted the innovativeness of the ASAP initiative and the commitment of the state to improve the quality and effectiveness of their training programs. He urged the SSCs to engage closely with ASAP since this would be a win-win for both parties. While ASAP would get industry inputs for identifying training needs, internships, and placement opportunities, training of trainers, and assessment of trainees (and therefore, of how effective the skill training programs are), the SSCs would be able to source good quality trainees to their respective industries and sectors, within and outside Kerala. The SSCs would earn revenue in return for their assessment services which will contribute to their long-run financial health.

5. Mr. M. T. Reju, CEO, ASAP, provided an overview of the ASAP initiative, the progress made to date, and the support it needs in quality assurance, design of courses, and internships / placements. He urged the SSCs to enhance their engagement with Kerala, and assured full support for facilitating the establishment of Business Advisory Councils (BACs), which will work as state level chapters for the SSCs. A short movie on ASAP was also shown. Thereafter, Mr. Reju signed MOUs with 6 SSCs including Apparel, Life Sciences, Logistics, Retail, Security, and Tourism and Hospitality. ASAP has therefore, signed MOUs with a total of 16 SSCs to date. The other 10 SSCs are Telecom, Plumbing, Healthcare, Gems and Jewelry, Rubber, Media and Entertainment, Electronics, Automotive, Capital goods, and Agriculture.

MOUs will also be signed with the SSCs for Banking, Financial Services, and Insurance (BFSI), and Beauty and Wellness.

6. The break-out sessions that followed were unique in the sense that for the first time, members of a state level skill development team (i.e ASAP) interfaced closely with representatives of 30 SSCs and several training partners to carve out mutually acceptable processes in critical areas such as curriculum alignment, training of trainers, assessment and certification, and design and operation of training facilities (i.e. CSPs). These sessions were appreciated by one and all as there was great learning of each other's viewpoint, and a process document could be successfully validated.

Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design Several rounds of detailed discussions have been held with a whole range of stakeholders including the Government (Ministry of Finance, Planning Commission, Ministry of Labour and Employment; representatives of state governments), the National Skill Development Corporation (NSDC), Chambers of Commerce, private sector skills providers, and donor partners during TA design.
During Project Implementation The above stakeholder consultations will be continued and intensified further during TA implementation. In addition, meetings will be held with representatives of the sector skills councils, state skill development missions, private skills providers, and the students who are undergoing skill development to ensure that the TA is implemented effectively.
Business Opportunities
Consulting Services A total of 147.5 person-months of consulting inputs is being provided under the TA: 17.5 person-months of international and 130 person-months of national consultants. ADB has engaged the consultants through a firm (81 person-months), using a simplified proposal for the quality- and cost-based selection method, as well as on an individual basis (21 person-months) in accordance with ADB's Guidelines on the Use of Consultants (2010, as amended from time to time). All TA-financed goods will be procured in line with ADB's Procurement Guidelines (2010, as amended from time to time). All disbursements under the TA will be done in accordance with ADB's Technical Assistance Disbursement Handbook (2010, as amended from time to time). Equipment such as laptops, printers, photocopiers, and other required items procured under the TA will be handed over to NSDC upon completion of the project. The advance payment facility may be used for payment of eligible costs. The TA will be implemented over 24 months, commencing in April 2013 and to completed in April 2015.
Responsible ADB Officer Shamit Chakravarti
Responsible ADB Department South Asia Department
Responsible ADB Division Human and Social Development Division, SARD
Executing Agencies
Department of Economic Affairs
Ministry of Finance
North Block
New Delhi-110001, India
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval -
Last Review Mission -
Last PDS Update 01 Sep 2015

TA 8010-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Dec 2011 15 Mar 2013 15 Mar 2013 31 Jan 2014 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
1,100,000.00 0.00 0.00 0.00 0.00 0.00 1,100,000.00 19 Dec 2011 887,518.80
Title Document Type Document Date
Skills Development for Inclusive Growth Technical Assistance Reports Dec 2011
Skills Development for Inclusive Growth Technical Assistance Reports Dec 2011

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