India: Odisha Skills Development Project

Sovereign Project | 46462-002

Summary

The expected impact of the S-PPTA (and of the ensuring loan) will be improved employability of the working age population of Odisha. This can be measured by increase in per capita income, decrease in unemployment rates, and increased share of formal employment in the organized sector. The expected outcome of the S-PPTA will contribute to enhanced capacity of OSEM and the Directorate of Technical Education and Training (DTET) to provide demand-driven skills programs in priority sectors and skills. This will be measured by an increase in numbers of men and women receiving skills training in priority sectors and skills, reduction in youth unemployment rates and reduced skills-gaps in priority sectors.

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Project Name Odisha Skills Development Project
Project Number 46462-002
Country India
Project Status Approved
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 8593-IND: Odisha Skills Development Project
Technical Assistance Special Fund US$ 225,000.00
TA 8593-IND: Odisha Skills Development Project (Supplementary)
Technical Assistance Special Fund US$ 500,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Knowledge solutions
Partnerships
Private sector development
Sector / Subsector Education - Technical and vocational education and training
Gender Equity and Mainstreaming Gender equity
Description

The expected impact of the S-PPTA (and of the ensuring loan) will be improved employability of the working age population of Odisha. This can be measured by increase in per capita income, decrease in unemployment rates, and increased share of formal employment in the organized sector. The expected outcome of the S-PPTA will contribute to enhanced capacity of OSEM and the Directorate of Technical Education and Training (DTET) to provide demand-driven skills programs in priority sectors and skills. This will be measured by an increase in numbers of men and women receiving skills training in priority sectors and skills, reduction in youth unemployment rates and reduced skills-gaps in priority sectors.

The S-PPTA will support the Government of Odisha to commence the design of the ensuing loan. Additional TA will be provided to complete the detailed design. The S-PPTA will be specific to the design needs of the ensuing loan. The output will be a design document for elements of the proposed loan project based upon comprehensive research and planning. The design and planning document shall be agreed with government as the basis for further detailed implementation planning, financial planning and costings and associated due diligence which will be necessary in second stage project preparation and finalization.

Key elements of the S-PPTA are likely to include: (i) sector analysis of skills development with a particular emphasis on drawing lessons learned and good practices in other states of India and from relevant countries; (ii) the groundwork for an updated and validated skills-gap and skills-potential analysis to validate priority sectors and skill levels for the next ten years; (iii) technical advice and planning to incorporate contemporary approaches to TVET in expansion and improvement; (iv) a gender and social inclusion analysis that identifies design features to maximize social inclusion; (v) a facilities condition report and infrastructure development plan; and (vi) an institutional/policy reform plan to guide best structure and needs for OSEM and DTET to implement large-scale demand driven skills development system.

There is early consensus with Government of Odisha that a future skills development project needs to: (i) target skilling of new entrants and up-skilling of existing workers in different sectors (agriculture, services and manufacturing, formal and informal sectors, and self-employment) and groups (those with different educational level, different social groups); (ii) reduce existing mismatches by relying more heavily on skill-gaps analysis, effective counseling and career guidance, better monitoring of ongoing programs (tracer studies, common and uniform database to track trainees), catalyze the private sector to promote enterprise based training and delegating more powers to training institutions to respond more flexibly to current and future labor market needs through partnerships; (iii) build new facilities and upgrade some existing facilities to ensure broad based provision and upgrade teaching equipment; (iv) build synergies with and expand successful skilling and up-skilling programs sponsored by central and state level schemes; and (v) expand capacity for quality assurance and training of trainers through partnerships. The S-PPTA will confirm/revise these understandings with government, to ensure project planning is closely targeted to government need.

Project Rationale and Linkage to Country/Regional Strategy The core problem in Odisha is the low employability of the young workforce due to low skills, weak capacity, fragmented skills ecosystem and weak synergy with industries. Nearly half of Odisha's population is below 25 years. However, youth unemployment (6.47% compared to 6.12% for all India) and underemployment (23.5% compared to 17.6% for all India) rates are high in Odisha. A significant size of Odisha's population of 41.9 million is marginalized. Odisha's economy is gradually shifting from agriculture (from 23.49% in 2004 05 to 15.58% in 2013 14) to industry (from 23.71% in 2004-05 to 25.40% in 2013-14) and services (from 52.80% in 2004 05 to 59.02% in 2013 14). Currently, the five major industries offering employment opportunities in Odisha are agriculture, construction, trade and repair of motor vehicles, manufacturing, and education. Government of Odisha has taken several initiatives to address emerging opportunities and related skills shortages. However, there is further need for both financial and technical assistance to achieve the desired outcomes from skills development programs including meeting employment targets. It is important to develop a phased market-responsive and quality assured, sustainable skills development system in Odisha in line with a long-term vision envisaged in India's National Skill Development Policy, 2009. This is consistent with ADB's country partnership strategy, 2013 2017.
Impact Enhanced capacity of OSEM and DTET to provide demand-driven skills programs in priority sectors and skills
Project Outcome
Description of Outcome 'Odisha Skills Development Project' conceptualized and initial loan design prepared
Progress Toward Outcome
Implementation Progress
Description of Project Outputs Scoping, design, technical and economic assessments completed
Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design The project design is envisaged to identify a menu-driven approach to identify the target groups in priority sectors and skills level for skilling/up-skilling so that the project can include those that have completed grades 5, 8, 10 and 12, for jobs within and outside Odisha, for formal and informal sectors, and for self-employment where feasible. In order to identify the target groups, the design includes consultancy provision to undertake economic and financial analysis, labor market analysis, and social safeguards analysis including preparation of a consultation and participation plan to ensure active participation of the target groups.
During Project Implementation TBD
Business Opportunities
Consulting Services The current provision has a total of 9 person-months of consultant inputs (5 person-months of international and 4 person-months of national). This will be increased to a total of 42 person-months of inputs, with 10 person-months of international and 32 person-months of national inputs to complete the detailed design work. ADB will engage a firm using quality and cost-based selection and simplified technical proposal covering standard activities with an estimated cost of less than $500,000, with a quality to cost ratio of 90:10 to attract good firms. The firm will provide a total of 24 person-months of inputs, with 3 person-months international and 21 person-months national inputs. ADB will also engage individual consultants for a total of 16 person-months of consultant inputs (7 person-months international and 11 person-months national). All consultants will be recruited in accordance with ADB''s Guidelines on the Use of Consultants (2013, as amended from time to time).
Procurement Disbursements will be made in accordance with ADB''s Technical Assistance Disbursement Handbook (May 2010, as amended from time to time).
Responsible ADB Officer Brajesh Panth
Responsible ADB Department South Asia Department
Responsible ADB Division Human and Social Development Division, SARD
Executing Agencies
Dept of Employment,Technical Educ&Training,GoOOdisha Secretariat,
Bhubaneswar-751001,
Odisha, India
Timetable
Concept Clearance -
Fact Finding -
MRM -
Approval 17 Dec 2013
Last Review Mission -
Last PDS Update 31 Mar 2015

TA 8593-IND

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
17 Dec 2013 - 17 Dec 2013 31 Jan 2015 31 Dec 2015 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
725,000.00 0.00 0.00 0.00 0.00 0.00 725,000.00 17 Dec 2013 226,263.54

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