India : Odisha Skill Development Project
The proposed project will help the government improve the employability, productivity, and income of its working-age population by enhancing the states capacity to supply high-quality, market-responsive skills training. These training programs are in line with the states development strategies in priority sectors such as manufacturing, construction, and services (e.g., healthcare and automotive). The project design incorporates emerging national and international good practices, including lessons learned. These lessons include (i) linking training programs with employers before training begins, (ii) incentivizing the private sector to develop a sustainable training model for the manufacturing sector, and (iii) investing in quality assurance systems through knowledge partnerships with national and international knowledge partners.
Bhambri, Poonam Sharma
South Asia Department
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|Project Name||Odisha Skill Development Project|
|Country / Economy||India
|Project Type / Modality of Assistance||Loan
|Source of Funding / Amount||
|Strategic Agendas||Inclusive economic growth
|Drivers of Change||Gender Equity and Mainstreaming
Governance and capacity development
|Sector / Subsector||
Education / Technical and vocational education and training
|Gender||Gender equity theme|
|Description||The proposed project will help the government improve the employability, productivity, and income of its working-age population by enhancing the states capacity to supply high-quality, market-responsive skills training. These training programs are in line with the states development strategies in priority sectors such as manufacturing, construction, and services (e.g., healthcare and automotive). The project design incorporates emerging national and international good practices, including lessons learned. These lessons include (i) linking training programs with employers before training begins, (ii) incentivizing the private sector to develop a sustainable training model for the manufacturing sector, and (iii) investing in quality assurance systems through knowledge partnerships with national and international knowledge partners.|
|Project Rationale and Linkage to Country/Regional Strategy||
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
|Description of Outcome||
Skills and employment in the priority sectors for the working-age population increased
|Progress Toward Outcome||None.|
|Description of Project Outputs||
Equitable access to market-responsive skills development programs increased
Quality and relevance of skills development programs improved
Skills ecosystem strengthened
Institutional capacity strengthened
|Status of Implementation Progress (Outputs, Activities, and Issues)||
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.
|Summary of Environmental and Social Aspects|
|Environmental Aspects||Environment is categorized B. Required documentation including Initial Environment Examination is being finalized in accordance with Safeguard Policy Statement 2009.|
|Involuntary Resettlement||Involuntary resettlement is categorized C. Required documentation including Resettlement Framework is being finalized in accordance with Safeguard Policy Statement 2009.|
|Indigenous Peoples||Indigenous peoples is categorized B. Required documentation including Indigenous Peoples Planning Framework and Indigenous People's Plan are being finalized in accordance with Safeguard Policy Statement 2009.|
|Stakeholder Communication, Participation, and Consultation|
|During Project Design||Consultation has been made with public and private institutions involved in skills development in and outside of Odisha. Consultations have also been made with potential beneficiary groups during project design.|
|During Project Implementation||To be identified during project design|
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.
|Responsible ADB Officer||Bhambri, Poonam Sharma|
|Responsible ADB Department||South Asia Department|
|Responsible ADB Division||India Resident Mission|
Skill Development and Technical Education Department
|Concept Clearance||10 Oct 2014|
|Fact Finding||01 Jun 2015 to 12 Jun 2015|
|MRM||27 Jan 2017|
|Approval||21 Jun 2017|
|Last Review Mission||-|
|Last PDS Update||14 Dec 2022|
|Approval||Signing Date||Effectivity Date||Closing|
|21 Jun 2017||03 Dec 2018||28 Jan 2019||31 Dec 2022||31 Dec 2023||-|
|Financing Plan||Loan Utilization|
|Total (Amount in US$ million)||Date||ADB||Others||Net Percentage|
|Project Cost||193.00||Cumulative Contract Awards|
|ADB||85.00||05 May 2023||72.60||0.00||97%|
|Cofinancing||0.00||05 May 2023||30.32||0.00||40%|
|Status of Covenants|
|Approval||Signing Date||Effectivity Date||Closing|
|21 Jun 2017||14 Jun 2019||14 Jun 2019||30 Jun 2019||15 Jun 2022||10 Jan 2023|
|Financing Plan/TA Utilization||Cumulative Disbursements|
|0.00||2,000,000.00||0.00||0.00||0.00||0.00||2,000,000.00||05 May 2023||737,386.69|
|Status of Covenants|
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Evaluation Documents See also: Independent Evaluation
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ADB to Help 200,000 Indian Youths Develop Skills for Better Jobs, IncomeADB has approved a loan of $102 million to help India train around 200,000 youths aged 15-34 in Odisha — in the eastern part of India — to develop their skills and prepare them for better work and higher-paying jobs.
|Contract Title||Approval Number||Contract Date||Contractor | Address||Executing Agency||Total Contract Amount (US$)||Contract Amount Financed by ADB (US$)|
|Package 0100-CNC Specialized Machine for precision Engineering at World Skill Centre||Loan 3539||22 Feb 2023||M/s DMG Mori India Pvt. Ltd. | No. 3-1, 3rd Main Road, K.I.A.D.B, Peenya 1st Stage, Ward No. 1, HMT, Pin - 560058, Bangalore, India||Skill Development and Technical Education Dept.||2,134,923.20||2,134,923.20|
|Package 110 - Permanent Network Infrastructure Setup at WSC||Loan 3539||10 Jan 2023||M/s Printlink Computer & Communication Private Limited | 7VP2+JFF, Maharishi College Rd, Saheed Nagar, Bhubaneswar, Odisha 751007||Skill Development and Technical Education Dept||1,040,344.77||1,040,344.77|
|PKG-0091: Design and Supervision Consultant for Precision Engineering Civil Works||Loan 3539||22 Dec 2022||M/s Arkitechno Consultants (India) Pvt. Ltd. | Plot No. N3/91, IRC Village, Nayapalli, Bhubaneswar, Odisha 751015||Skill Development and Technical Education Dept||425,580.20||424,744.41|
|Package 0088: Consulting Services for Training and Delivery for RPL Training||Loan 3539||02 Dec 2022||M/s Central Tool Room and Training Centre | B-36, Infocity Ave, Chandaka Industrial Estate, K I I T University, Area, Bhubaneswar, Odisha 751024||Skill Development and Technical Education Dept||1,112,897.77||1,097,706.21|
|Package 0089: Consulting Services for Self-Employment Training Through Managed Services Operating Partner (MSOP)||Loan 3539||02 Dec 2022||Palladium Consulting India Private Limited | Eros Corporate Towers, Level 15, Nehru Place, New Delhi DL 110019||Skill Development and Technical Education Dept||3,276,066.90||3,231,347.10|
|Package 39 - MES and RAC Facility Technology Lab: Welding Equipment||Loan 3539||01 Sep 2022||Messer Cutting Systems India Pvt. Ltd. | No. 199/2AB2, 198/2A2A and 198/2A2B SNMV College, Road, Malumichampatti, Tamil Nadu 641050||Skill Development and Technical Education Dept||1,813,104.58||1,780,466.51|
|Package-0092 - Engineering, Procurement and Construction of Precision Engineering Building and Facilities for Precision Engineering Complex at Bhubaneswar (Odisha)||Loan 3539||27 Sep 2022||Shreeji Infrastructure India Pvt. Ltd. | A-4, Emerald Park City, Saket Nagar Near AIIMS, Bagh Sewaniya Road, Bhopal 462043||Skill Development and Technical Education Dept||6,639,557.20||6,605,806.48|
|Operating Expenses of World Skill Center||Loan 3539||04 Jan 2022||Various | Various||Skill Development and Technical Education Dept||4,005,396.16||4,000,135.42|
|TRAINING OF TRAINERS FOR 3000 TRAINERS AND 250 ASS ESSORS FOR WSC, ITI AND POLYTECHNICS.||Loan 3539||21 Sep 2020||VARIOUS | VARIOUS INDIA||Skill Development and Technical Education Dept||2,200,000.00||2,200,000.00|
|TRAINING OF TRAINEES AT WORLD SKILL CENTER FOR LON G AND SHORT TERM COURSES||Loan 3539||23 Sep 2020||VARIOUS | VARIOUS INDIA||Skill Development and Technical Education Dept||16,600,000.00||16,600,000.00|
|Capacity Development||Technical Assistance 9330||04 Sep 2020||Santou Kaka Kokusai Keizai Gijyutsu Gassaku Co.,Lt(JAPAN) | Tokyouto adachiku aoi 4-44-7 Tokyo 121-0012 Japan||Skill Development and Technical Education Dept||270,611.00||—|
|VARIOUS EXPENSES RELATED TO ODISHA SKILL COMPETITI ON||Loan 3539||25 Jul 2019||VARIOUS | VARIOUS INDIA||Skill Development and Technical Education Dept||1,227,131.35||1,192,561.59|
|ODISHA SKILLS 2020 - STATE LEVEL SKILLS COMPETITIO N||Loan 3539||22 Nov 2019||VARIOUS | VARIOUS INDIA||Skill Development and Technical Education Dept||2,784,336.44||2,784,336.44|
|ENGAGEMENT OF PROFESSIONAL AGENCY FOR TRAINING OF LIFE SKILLS INCLUDING EMPLOYABILITY SKILL SUBJECT IN GOVERNMENT ITIS OF ODISHA||Loan 3539||19 Nov 2019||TATA COMMUNITY INITATIVES TRUST (TCIT) | JEEVAN BHARTI, 10TH FLOOR, TOWER 1/124 CONNAUGHT CIRCUS, NEW DELHI-110001 INDIA||Skill Development and Technical Education Dept||1,206,100.51||1,206,100.51|
|CONSULTANCY PACKAGE FOR INTEGRATOR TO ESTABLISH WORLD SKILL CENTER (PACKAGE 8)||Loan 3539||06 Mar 2019||ITE EDUCATION SERVICES PTE. LTD. | ITE HEADQUARTERS, BLK-A, A2-01, 2 ANG MO KIO DRIVE, SINGAPORE - 567720 SINGAPORE||Skill Development and Technical Education Dept||3,800,000.00||3,800,000.00|
|Title||Document Type||Document Date|
|Odisha Skill Development Project: Procurement Plan||Procurement Plans||Mar 2023|