Guidelines for Selection of Vocational Training Providers under Skill ...

1. BackgroundGuidelines for Selection of Vocational Training Providersunder Skill Development Initiative Scheme of GOIIn pursuance of Hon'ble Union Finance Minister's announcement in 2005-06 BudgetSpeech, Ministry of Labour and Employment undertook development of a newstrategic framework for skill development for the school drop-outs and existingworkers especially in the informal sector in close consultation with industry,micro enterprises in the informal sector, State Governments, experts and academia.This was essential considering their educational, social and economic background. Thekey features of the new framework for skill development are:• Demand driven short term training courses based on Modular EmployableSkills (MES) decided in consultation with Industry.• Flexible delivery mechanism (part time, weekends, full time, onsite/ offsite)• Different levels of programmes (Foundation level as well as skill upgradation) tomeet demands of various target groups.• Training to be provided by Vocational Training Providers under the government,private sector and industrial establishments• Optimum utilization of existing infrastructure to make training cost effective.• The services of existing or retired faculty or guest faculty to be utilized• Testing of skills of trainees by an independent assessing body that would not beinvolved in conduct of the training programme to ensure that it is done impartiallyAccordingly,with the inclusion of above features, a new scheme namely “SkillDevelopment Initiative” for imparting vocational training / testing of competencies of 1million persons over a period of 5 years and thereafter 1 million per year with an outlay of Rs.550.00 Crores has been taken up. The scheme has been operationalised after the approvalof CCEA on 24th May 2007.The training under SDI scheme was envisaged to be provided by variousVocational Training Providers (VTPs) under Central Government, StateGovernments, Public and Private Sector and Industrial establishments. It was decided thatinitially 1896 Govt. ITIs and 3218 private ITCs affiliated to the National Council forVocational Training (NCVT) will be eligible to participate in the scheme as VTPs.Once the scheme takes off, the mechanism will be evolved for empanelment of otherprivate VTPs by the Apex committee. Considering the response to the scheme, it isimperative to expand the ambit of Vocational Training Providers. Criteria andPage 1 of 8

procedure for registration of various organizations as VTPs under SDI scheme isgiven below.2. Eligibility of Vocational Training ProvidersThe applicants fulfilling the following conditions are eligible to apply:2.1. Educational / Training Institutes:Any educational/ training institute fulfilling any of the following criteria:1.0.0 ITIs / ITCs affiliated to NCVT on or before the date ofsubmission of the application.2.0.0 Institutes approved by Councils under Central GovernmentMinistries like All India Council of Technical Education / MedicalCouncil of India / Indian Nursing Council / National Council forHotel Management and Catering Technology / Any other on or beforethe date of submission of the application.3.0.0 Colleges / Institutes affiliated to a university set up by a Central orState / UT government or recognized by University GrantsCommission.4.0.0 Schools / Institutes approved by Central or State Boards ofSecondary Education (or equivalent) or Boards of TechnicalEducation.5.0.0 Institutes approved by International Air Transport Association(IATA) and International Civil Aviation Organisation (ICAO)In future, if the registration/affiliation of the institute is cancelled for anyreason by the respective accrediting/registering/governing authority,then its registration as VTP under SDIS would also stand cancelled.VTP will not be allowed to run any new MES courses/batches fromthe date of cancellation. It will, however, have to complete the training of theon-going courses.2.2 Organizations/ Institutes set up by Government:2.2.1. Organizations / Institutes (including autonomous organizations) set upby Central Government / State Governments / UT Administrations.2.3 Companies/Firms:Company/Firm fulfilling any of the following criteria:1.0.0 An organization providing training under Apprentices Act, 1961 for lastone year from the date of submission of the application.Page 2 of 8

2.0.0 An organization registered in India, having been in existence in three years,employing at least 100 full time employees at the time of submission ofapplication. It should have a valid Permanent Income Tax Account Number(PAN) or Service Tax Registration Number (TAN) and audited accounts ofstatements for the last three years.3.0.0 Chambers of Commerce and Industry / Associations of Industries orTrade having at least 100 members at the time of submission of application.However, these cannot become Assessing Body under the SDIS.2.4 Companies/Firms /Registered Societies/Trusts engaged in providingtraining:2.4.1 Registered Company /Firm/ Trust/ Society conducting vocationaleducation / training / job oriented / self employment/ entrepreneurshipdevelopment training courses having essentially trained 1000 persons inthe last three years under a Central Government Scheme. It should have been inexistence for at least three years holding a valid Permanent Income TaxAccount Number or Service Tax Registration Number. It must have auditedaccounts of statements for last three years and should not have been blacklistedby any Government entity in India. It should submit a letter ofsatisfactory performance from concerned central government ministry underwhose scheme it has trained more than 1000 persons.2.4.2 Hospitals/ Nursing homes registered with appropriate local authority andhaving at least 50 beds and training infrastructure.3. Registration Procedure3.1 The VTPs desirous of providing vocational training under the scheme arerequired to be registered. The registration will be as per the followingprocedure :-3.2 Application:1.0.0 Duly filled in and signed application in the prescribed form(twocopies) which is enclosed at Annexure-I along with prescribedapplication fee and the necessary supporting documents must besubmitted to the Joint Director, Employment Generation andTraining, Punjab, S.C.O No 47/1, Sector 17 E, Chandigarh eitherin person or through speed post/registered post. In addition, onecopy of the above application should be submitted tothe Director, Regional Directorate of Apprenticeship Training(RDAT), 3 rd Floor, A-Wing, New CGO Building, NH-IV, Faridabadalso, either in person or through speed post/registered post.The Application forms can be downloaded from Punjab governmentwebsite www.punjabgovt.nic.in or Employment Department websitewww.pbemployment.gov.inPage 3 of 8

2.0.0 The application should spell out, among other things, thefollowing:. Documentary proofs of eligibility to apply as VTP inaccordance with relevant provisions under para 2.0.. Goals and objectives of the organization.. Details of its promoters including their background.. Background of the organization with reference to its experience inpromoting, managing and operating skill developmentprogrammes. Its activities in the training domain related to the sectors /trades in which it proposes to impart the training since its inception andits growth plan.. Details of tie-up with industry for imparting training to staff andstudents, etc.. Training Infrastructure and amenities (equipment, space, power,instructional staff, etc.) available at its centres and methodology oftraining.. Detailed plan of the organization for conducting trainingincluding sectors/ trades, onsite/ offsite, mobilization ofresources (financial, instructional, administrative and physicalequipment,raw-material, space, etc.), on-the-job training,organizing post training support for employment of students, etc.. Policy and practices with regards to Trainers recruitment, retentionand development.. Policy and practices for selection of trainees and vocationalguidance and counseling.. Policies and practices for on-the-job training and production umtraining.. Industry tie-ups for post-training support in the form ofproviding employment (wage employment/ self employment / anyother).The above, shall form the basis for evaluation of the application and shall serveas the blue print for proper evaluation of the applicant and furtherdevelopment.3.2.3 Application for registration as VTPs should be submitted by:. The Director or authorized person of the Institute/Company/Firm. The power of attorney to be submitted for authorizedsignatory.. Officer designated by the Government in case of Central/StateGovernment organizations.. The Chairman or Secretary of Society/Trust.Page 4 of 8

3.2.4 Organizations having more than one training centre in a particularstate can submit a combined application for all the training centres in aparticular state. However, application forms are required to be filled up foreach centre accompanied by separate application fee.3.3 Application Fee:3.3.1 The applicant must submit along with application form a “Non-Refundable”application fee in the form of a Demand Draft for Rs. Five Thousand Only(Rs. 5000.00) in favour of Director of Employment Generation and Trainingcum-MemberSecretary Punjab State Council for Employment Generation andTraining, payable at Chandigarh failing which, the application will not beconsidered for evaluation. The particulars of the organization depositing theapplication fee must be mentioned at the back of the draft.1.0.0 Government Organisations / Institutes are exempted from submission ofApplication Fee.2.0.0 The complete application (two copies) along with the demand draft mustreach the office of The Joint Director, c/o Directorate of EmploymentGeneration and Training, Punjab, S.C.O 47/1, Sector 17 E, Chandigarhlatest by 23-09-2008. One copy of the application should also reachthe Director, Regional Directorate of Apprenticeship Training (RDAT), 3 rdFloor, A-Wing, New CGO Building, NH-IV, Faridabad by the same date.3.4. Evaluation of Application:1.0.0 The evaluation of the applications shall be done by the VTP EvaluationCommittee (VEC).2.0.0 The applications and related documents shall be duly scrutinizedby the State VEC or their authorized representatives. The deficiencies ifany, in the application shall be communicated to the applicant. Theapplicant shall furnish all such information/ documents / proofs sought for thepurpose of evaluation.3.0.0 State VEC will then call the applicants for a presentation / discussion.4.0.0 State Government will inform the applicant & RDAT, the decision ofthe VEC about the approval/ rejection of the application. The RDATwill register the VTP and issue registration letter.5.0.0 The applicants shall bear all costs for making the presentation or submissionof information / documents as desired by State VEC.6.0.0 In case of those applicants who have submitted the combined applicationas mentioned in Section 3.2.4, presentation / discussion can be done atone time only for the approval of all the centres.7.0.0 The applicant whose application is rejected by State VEC on dueevaluation will not be eligible to apply for registration as VTP for a period ofsix (6) months from the date of rejection. If on re-applying, the applicationis rejected again, the applicant will not be eligible to apply again for a periodof one year from date of second rejection.Page 5 of 8

3.5 Parameters of evaluation:The evaluation of an organization/ institute for becoming VTP under SDIscheme shall be done by VEC based inter alia on criteria specified underpara 3.2.2. Therefore applicants are advised to fill in the required informationcarefully.3.6 Issue of Registration Letter:1.0.0 Based on the evaluation of the application, eligible applicants shall beregistered as VTPs under SDI Scheme. They shall be issued a registrationletter by respective RDATs.2.0.0 The registration of the VTPs will be valid till 31.03.2012 and shall bereviewed every two year by State Government/ DGE&T based on theperformance of the VTP under the scheme.3.0.0 The selected VTP shall submit a Performance Guarantee in the form of aBank Guarantee for Rupees Two Lakh only (Rs. 2,00,000.00) forperforming all the obligations arising on acceptance of all the termsand conditions of registration as Vocational Training Provider to therespective RDAT failing which the registration letter will not be issued. Theformat for the Bank Guarantee enclosed at Annexure-II shall be provided bythe concerned RDAT to the selected VTPs. The Bank Guaranteeshall be valid for the period of registration, i.e., till 31.03.2012. DGE&T willhave the absolute right to encash Bank Guarantee, if sufficientlyconvinced of negligence and lack of dedication to work on the part of theVTP.4.0.0 Government Organisations / Institutes are exempted from submission ofApplication Fee and Bank Guarantee.5.0.0 Autonomous Bodies under Government and private ITCs affiliated tothe NCVT are exempted from submission of Bank Guarantee.3.7 Suspension / Cancellation of Registration:1.0.0 DGE&T, RDAT, concerned State/ UT Government department or any agencyauthorized by them may carry out random visits round the year any time forverifying the status of the institution and to ensure maintenance of norms andstandards.2.0.0 DGE&T, RDAT, concerned State/ UT Government department or any agencyauthorized by it may also conduct from time to time inspections with orwithout notifying such dates in such cases where specific complaints ofmisrepresentation, violation of norms and standards, malpractices etc. arereceived to verify the facts. Upon inspection, such complaints if foundcorrect may decide to Cancel / suspend the registration of VTP and/or forfeitthe Bank Guarantee submitted by it.Page 6 of 8

3.0.0 Depending on a particular case, VTP may be allowed to create the facilities/remove the deficiencies/ comply with stipulated conditions/ fulfillmentof prescribed requirement as per timelines prescribed by State VEC orRDAT.4.0.0 In case, it is found at a later stage that any of the documents submittedby the applicant are falsified, the registration of the VTP will be cancelled andVTP will be black-listed, the Bank Guarantee will be forfeited and it will not beallowed to register as VTP for the SDIS Scheme, in future.5.0.0 The proposal for cancellation of registration of a VTP will be considered byState VEC and based on its recommendation, State Government/ RDATwill issue the cancellation order.6.0.0 A show cause notice shall be issued to the VTP giving him 15 days time toexplain why his registration should not be cancelled.4 Other Conditions4.1. The selected VTPs shall submit an undertaking in the prescribed formwhich is enclosed at Annexure-III that it shall provide necessary traininginfrastructure required to run the MES course under SDI Scheme. If at anystage it is found that VTP is running the courses without necessary traininginfrastructure, or is not giving proper training to the trainees, its registrationmay be cancelled / suspended and the bank guarantee shall be forfeited.1.0 DGE&T is in the process of developing web-based software for effectiveimplementation of the SDIS. The VTP shall fully comply with instructionsissued by DGE&T from time to time in this regard and for usage of thesystem. It shall provide necessary IT infrastructure and manpower for the same.2.0 The VTPs would be eligible to run only those MES courses for which it hasbeen registered. However the registration of the VTP will not automatically giveit any right to claim reimbursement from the Govt. for training costs of studentsenrolled in a particular course without approval of the Govt./Competentauthority.4.4 The VTP shall submit the schedule of courses it intends to run / discontinueevery six months to the concerned State Government. VTP cannotdiscontinue any course(s) without written approval of the StateGovernment.4.5 The VTP can run off-campus courses with permission of the competentauthority only within the district in which the training centre has beenregistered.5 Evaluation of a VTP5.1 Separation of training delivery and assessment functions are aimed atensuring quality. Performance of the VTPs would be closely monitoredbased on the output and outcome of training provided by them. Ratingwould be awarded to the VTPs from 2nd year onwards based on followingcriteria:Grading Pass rate of trainees who appeared in Employment rate ofPage 7 of 8

tests during a period of 6 months (Aprilpassed out trainees- September , October- March)A 80% and above 80% and aboveB 60%- 80% 60%- 80%C Less than 60% Less than 60%5.2 List of VTPs along with ratings would be provided on the SDI/ MESwebsite. Registration of the VTP would be cancelled if it gets 'C' grade, in twoconsecutive times. The VTP would be able to apply for a freshregistration not before one year from the date of cancellation of theregistration. From 3rd year onwards, employment rate of trainees wouldalso be considered in the rating.6. DefinitionDGE&T would mean Director General of Employment and Training, GOI, any of itsoffices or officers/ any other agency appointed by DGE&T for performing a specifiedfunction.7. Power to modifyThe Apex committee has the power to modify any of the provisions of theseRegulations in respect of any class or category of institutions.*****Page 8 of 8