New Delhi: The Ministry of Skill Development and Entrepreneurship is likely to move a bill in the monsoon session to widen the scope of the definition of establishments under the Apprenticeship Act. Cabinet clearance on the proposed changes in the Apprenticeship Act will allow educational and other training institutes to hire apprentices, a top government official said.
MSDE estimates show that India should have around 2 million apprentices enrollments every year (assuming the minimum 2.5% of the strength of establishments employing 30 or more employees) whereas only 250,000 apprentices being trained at present, based on establishments listed in the Sixth Economic Census (2013-14). A multi-fold gap is there in the actual verses calculated one.
Currently, apprentices are allowed largely in the manufacturing sector. The definition of establishment needs to be changed to include any place where trade or commerce or industrial activity takes place, including educational and training institutions.
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“Work is being fast-tracked to finalize changes to the Apprentices Act to make it more holistic and aspirational to enable more youth to take up an apprenticeship,” the official said.
India’s current apprenticeship scheme allows 2.5-15% of organizations’ total workforce to be apprentices. It is mandatory for firms with 30 or more employees to hire apprentices. Under the National Apprenticeship Promotion Scheme, the company pays 75% of the cost of stipend for each apprentice and the government contributes 25%,
The official said the amendment proposed seeks to enlarge the scope of apprenticeship and the availability of apprenticeship facilities at a larger scale. Other changes being proposed include allowing virtual learning mode for apprenticeship training, wherever needed, besides significantly enhancing the ease of doing business for employers. A new system of compliance and shift from the current practice of self-governance is also being proposed.
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