India : Odisha Skill Development Project

Education / Technical and vocational education and training

Odisha aims to train 1 million people by the end of the Twelfth Five-Year Plan in 2017. However, the capacity and quality of existing training programs are far from sufficient to meet this target. The state has trained only about 330,000 people in the last 2 years and now aims to train about 800,000 people by 2019. Odisha's current skills development system faces several constraints: (i) the skills ecosystem is fragmented, with weak institutional coordination; (ii) training capacity is insufficient to meet the five-year plan target, and the geographic spread of training institutions is uneven; (iii) the quality and relevance of training is inadequate due to outdated curricula and equipment, and a shortage of industry-experienced trainers, especially at industrial training institutes (ITIs); (iv) employer linkages with training programs are weak, and a reliable labor market information system is lacking; (v) a robust quality assurance system must be developed to benchmark training institutions to international standards; (vi) mentoring institutions to transform ITIs into more effective institutions are lacking; and (vii) viable training models are needed for higher-cost, capital-intensive manufacturing.

Recognizing the growing importance of skills training, the government established an autonomous implementation institution, the Odisha Skill Development Society, in 2015. However, due to the limited focus of this institution, in December 2016 the government established the Odisha Skill Development Authority (OSDA) to bring together all skills training programs under one strongly coordinated entity, headed by an eminent industry leader. By merging the OSEM and Odisha Skill Development Society with OSDA, the government aims to streamline existing institutional arrangements and enhance OSDA's capacity to meet skill-building targets and influence broader state policy. OSDA has two priorities: (i) to enhance the ITIs capacity; and (ii) to accelerate training capacity by establishing a World Skill Center (WSC).

The project reflects the priorities of the country partnership strategy, 2013-2017 for India, which reinforces India's efforts to achieve inclusive growth and recognizes education, especially vocational training, as a new sector in the India operations of the Asian Development Bank (ADB). The project is aligned with the Midterm Review of Strategy 2020, which emphasizes the need for ADB to expand lending for post-basic education and vocational training to develop human capital and facilitate public private partnerships to leverage results. Odisha will be the third state to receive ADB support for skills development, after the states of Meghalaya and Kerala where ADB is supporting two projects. Given the weak institutional capacity for implementation in Odisha, the project has adopted a regular project investment modality with significant provision for capacity development support to OSDA.

Unemployment and underemployment rates for female and male youth (aged 15-34) reduced by 2025

Skills and employment in the priority sectors for the working-age population increased

Equitable access to market-responsive skills development programs increased

Quality and relevance of skills development programs improved

Skills ecosystem strengthened

Institutional capacity strengthened

OSDA is operational with full time Project Director and PMU team. OSDA has undertaken district level Skill Gap Analysis and developed District Skill Plan for all 30 District of the State. Employer satisfaction survey will be conducted after 6 months of placement for first batch of WSC, i.e. March 2023.

Training session on Procurement and Contract Management was conducted in November 2022. Another training session each on Financial and procurement management is planned in first quarter of 2023 for staff of ITI, Polytechnics and WSC. Loan was extended for 6 months and the revised completion date is 30 June 2023. Close monitoring and regular follow-ups are conducted by the Project Team to address all pending contracts and related disbursements. EA is requested to process payments to suppliers and consulting firms timely. Funds allocated for training and operating expenses at WSC need to be utilized. 2nd batch of training started in WSC. Civil works for Precision Engineering facility has been initiated. All the trainings imparted under ITI and Polytechnic are NSQF aligned. Internal committee has been formed at OSDP Level for NSQF compliance of WSC courses and take the matter with NSQC.WSC Academy has started functioning with an aim to strengthen the capacity and capability of trainers deployed at WSC.

Project Management Consultants (PMC), Program Management Team (Consulting firm) to

support project management unit in project implementation and will be recruited in accordance with

ADBs Guidelines on the Use of Consultants, 2013, as amended from time to time.

Procurement under the project includes procurement of retrofitting contractor and training equipment. ADB standard bidding document and procurement procedures in accordance with ADBs

Procurement Guidelines (2013, as amended from time to time) will be used for the procurement

of goods/equipment and civil works construction.