Deputy Apprenticeship Advisor office
Government of NCT of Delhi

Trades under Apprenticeship Act:-

GUIDELINES FOR IMPLEMENTATION OF NATIONAL APPRENTICESHIP PROMOTION SCHEME

• BACKGROUND
• The Apprentices Act, 1961 was enacted with the objective of regulating the program of training of apprentices in the industry by utilizing the facilities available therein for imparting on-the-job training. Ministry of Skill Development and Entrepreneurship is the administrative ministry responsible for implementation of the Act.
  • The National Policy of Skill Development and Entrepreneurship 2015, launched by the Hon’ble Prime Minister on 15th July, 2015, focuses on apprenticeship as one of the key program for creating skilled manpower in India.The policy proposes tpro-actively work with industry including MSME sector tfacilitate a tenfold increase in apprenticeship opportunities in the country by 2020.

1.3 Apprenticeship training is one of the most efficient ways tdevelop skilled manpower for industry by using training facilities available in the establishments without putting any extra burden on exchequer tset up training infrastructure. Persons after undergoing apprenticeship training can easily adapt tindustrial environment at the time of regular employment. The other advantages of apprenticeship training are as follows:
It is one of the most important schemes in terms of quality of training, experiential learning and the enhanced employability that it provides.
It is the most promising skills delivery vehicle in the industrial/training ecosystem of the country as it provides for a structured and rigorous training programme which helps apprentices becomes skilled.
It gives apprentices a real chance tput skills intpractice and helps them tgain confidence in a working environment.

1.4 Apprenticeship Training consists of Basic Training and On-the-Job-Training/Practical Training at workplace in the industry. The basic training is an essential component of apprenticeship training for those whhave not undergone any institutional training/skill training before taking up on-the-job-training/practical training. It accounts for 20-30% of overall duration of Apprenticeship Training. Apart from basic training, there is a component of on-the-job training which is performed in the establishments and undertaken by the establishment itself.

1.5. The Apprentices Act, 1961 makes it obligatory for employers tengage apprentices in designated trades and in optional trades. Directorate General of Training (DGT) under Ministry of Skill Development & Entrepreneurship monitors the implementation of the scheme of apprenticeship training. For CPSUs and establishment operating business in 4 or more States, it is done through six Regional Directorates of Apprenticeship Training. State Apprenticeship Advisers monitor the Scheme in State Government Undertakings and Private Establishments.

1.6 There are five categories of apprentices namely; trade apprentices, graduate apprentices, technician apprentices, technician(vocational) apprentices and optional trade apprentices.

2.0 Current status

2.1 Only 2.30 lakh trade apprentices are undergoing apprenticeship training in 30,165 establishments throughout the country under the Apprentices Act, 1961 which is miniscule as compared tthe total number of establishments in the country. Out of these, 36,000 apprentices are in Central Public Sector Undertakings/Central Government and 1.94 lakh apprentices are in State Public Sector Undertaking/State Government Departments and Private Sector

3.0. Amendments in the Apprentices Act, 1961
3.1 The government has brought comprehensive amendments in the Act in December 2014 tmake it more attractive for both industry and youth. Major changes introduced in the amendment are: replacing the outdated system of trade wise and unit wise regulation of apprentices with a band of 2.5% t10% of the total workforce (including contractual workers), introduction of optional trades, removing stringent clauses like imprisonment & allowing industries tout-source basic training.

4.0 Potential available for Apprenticeship Training
4.1 There are a large number of establishments where training facilities are available but these facilities have not be utilized because such establishments express their inability tcome under the Act citing lack of support from Government. Compared tthe size and rate of growth of economy of India, the performance of Apprenticeship Training is not satisfactory and a large number of training facilities available in the industry are going unutilized depriving unemployed youth tavail the benefits of Apprenticeship Training.
4.2 There are about 50 lakh employees in Central Public Sector Undertaking, Central Government and Banking Sector. If these establishment engage apprentices even up tthe mandatory minimum limit of 2.5% of the total manpower strength, the number could reach 1,25,000. According tthe fifth economic census, there are 20,62,124 MSMEs having 6 or more workers. If each establishment engages even one apprentice, the number could be 20 lakh. Therefore, there is a huge potential in apprenticeship training which remains untapped.

5.0 Incentivizing Employers

5.1 Apprenticeship training provides for an industry-led, practice-oriented, effective and efficient mode of formal training and as such strengthening of apprenticeship training needs tbe given a high priority.

5.2 Although On-the-Job-Training/Practical Training facilities are available with the employers but they are not able tengage apprentices as they dnot have basic training facilities. Employers are not interested toutsource apprentices for basic training tother training providers, as they have tbear the basic training cost tbe paid tthe basic training providers and the stipend payable tapprentices during the basic training period.

5.3 Keeping in view the importance of Apprenticeship Training, the scheme for "Promoting Apprenticeship Training" was placed before the Cabinet for its approval and the Cabinet approved "National Apprenticeship Promotion Scheme”.

6.0 National Apprenticeship Promotion Scheme
The scheme is for

1. (Sharing of 25% of prescribed stipend subject ta maximum of Rs. 1500/- per month per apprentice tall apprentices with the employers.
2. Sharing of cost of basic training with Basic Training Providers (BTP).

6.1 Objective of the Scheme
The main objective of the scheme is tpromote apprenticeship training and tincrease the engagement of apprentices from present 2.3 lakh t50 lakh cumulatively by 2020.

6.2 Components of the Scheme
The scheme has the following twcomponents:
6.2.1 Sharing of 25% of prescribed stipend subject ta maximum of Rs. 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices.
6.2.2 Sharing of basic training cost in respect of apprentices whcome directly tapprenticeship training without any formal trade training. Basic training cost will be limited tRs. 7500/- for a maximum of 500 hours/3 months.

6.3 Scope of the Scheme
This scheme will cover all categories of apprentices except the Graduate, Technician and Technician (Vocational) apprentices which are covered by the scheme administered by Ministry of Human Resource Development

6.4 Scheme Targets
Target under the scheme shall be 5 lakh apprentices in 2016-17, 10 lakh apprentices in 2017-18, 15 lakh apprentices in 2018-2019 and 20 lakh apprentices in 2019-20. The engagement of fresher apprentices shall be 20% of total annual target.

6.5 Implementing Agencies
6.5.1 Regional Directorates of Apprenticeship Training (RDATs) under the control of Directorate General of Training will act as implementing agencies in their regions for Central Public Sector Undertaking and establishments operating their business in 4 or more States.
6.5.2 State Apprenticeship Advisers will act as implementing agencies for state public sector and private establishments under their jurisdiction.

6.6. Key features

6.6.1 Wider options for the apprentices- integration with other schemes
Courses under PMKVY/MES will be linked with apprenticeship training. These courses will be given the status of optional trades & the relevant practical content for On-the-Job training will be added by SSC/NCVT as the case may be. The total duration of On-the-Job/Practical training for these courses will be of one year (excluding the period of basic training)

6.6.2 Ease of Administering through technology

1. (Online portal would be used for administering the implementation of the Apprenticeship Training. It will address the requirements of all key stakeholders.
2. Portal will facilitate:

For Industry

• On-line registration
• Declare apprenticeship seats/vacancies
• Search & shortlist candidates specific tsector, trades, region etc.
• Issue offer letters tcandidates for engaging as apprentices
• Submit contract of apprenticeship on-line for approval by respective RDAT/State Apprenticeship Advisor
• Monitoring of apprenticeship training.
• On-line submission of returns and records
• On-line submission of claims.
• Online payment of Government share

For candidates

• On-line registration indicating their sector/trades of choice
• Sending application tpotential employers for apprenticeship training,
• Online receipt and acceptance of offer letters from establishments
• Process all necessary contractual obligations online.
• Search and select Basic Training Provider (BTP) specific tsector, trades and region

For Regional Directorates of Apprenticeship Training/State Apprenticeship Advisers(SAA)

• Review & approve contracts of apprenticeship
• Monitor the implementation of apprenticeship training
• Receipt and review of claims from employers
• Online payment of 25% of prescribed stipend subject ta maximum of Rs. 1500/- per month per apprentice tthe employers
• Receipt and review of applications from BTP by RDATs
• Receipt of Inspection report and approval of BTPby RDATs
• Receipt and review of claims from BTP on-line.
• Payment of cost of basic training tBTPs

For Basic Training Provider (BTP)

• On-line registration
• Declare basic training seats/vacancies
• Search & shortlist candidates specific tsector, trades, region etc.
• Provide basic training tapprentices whhave been sponsored by a employer after execution of contract with apprentice
• Placement of apprentices for on-the-job training with employer after basic training.
• On-line submission of claims.

3) Portal will alsfacilitate for time bound approval of contract of apprenticeship, centralized database for compliance and monitoring, online verification of candidates profile, management of on-line examination for generation and issue of hall tickets.

6.6.3 Involvement of States/UTs

• As per the Apprentices Act, monitoring of apprenticeship training in State Public Sector Undertakings and Private Sector Establishments is done by the respective State Governments. Generally, it has been seen that State Governments dnot play an active role in promoting apprenticeship training sit has been decided tinvolve the states in implementing the new scheme. State Apprenticeship Council will be entrusted tsetup an Apprenticeship Cell in each State and their responsibilities will include monitoring the implementation of this scheme.

6.6.4 Promoters and facilitators for Apprenticeship Training

1. Facilitators/Promoters in the system are essential for mobilizing the apprentices. Since this scheme involves multiple stakeholders, the role of facilitators becomes important. Facilitators can alscreate awareness among the employers which is generally lacking in our country. The facilitators can alsplay a major role in coordinating between basic training providers and the employers for on-the-job training.

7.0. Communication campaign

1. Workshop/Seminars
   Meetings/Workshops will be organized with all stakeholders including CII, FICCI, ASSOCHAM, Sectoral Associations and local industry chambers/clusters.
2. Publicity & advertisements using both print and electronic media.
3. (Brand Ambassadors
   Appointing Brand Ambassadors for states and for local industrial clusters tact as facilitators and promoters tpromote apprenticeship training. Brand Ambassadors may be from large, medium and small industries. These will be actual practitioners & will include those employers whhave/are engaging apprentices. Brand ambassadors will be formally recognized by granting them certificates/badges.

8.0 Implementation plan

8.1 Eligibility of Employer

• Employer is any person/entity whhas business in any trade or occupation.
• The employers interested tavail the benefits of the scheme must fulfill the following:
• Employer shall engage apprentices in a band of 2.5% t10% of the total strength of the establishment
• Employers must be registered with EPFO/ESIC/LIN/ UDYOGAADHAR
• Employers must have TIN number.
• Employers must register on the apprenticeship portal.
• Employers must have an aadhaar linked bank account

8.2 Eligibility of Apprentice
An apprentice is a person whhas made contract of apprenticeship with the employer for apprenticeship training under the Act.
Apprentices can be engaged from the following four categories:

1. (Trainees passed out from ITI courses
2. Trainees under dual-learning mode from ITIs
3. Trainees whhave completed PMKVY/MES courses
4. Candidates whpossess minimum educational qualification required for a trade and have not undergone any formal trade training (Fresher apprentices)

• Apprentice must fulfill the following:
• He/she has completed 14 years of age and fulfills other requirements of the Apprentices Act, 1961.
• Every apprentice has tregister on the portal.
• Every apprentice must have an aadhaar number.
• Must possess minimum age, educational and physical qualification prescribed for the trade

Maximum age in respect of apprentices mentioned at (iv) above shall be 21 years.

Number of apprentices mentioned at (iv) above may be upt20% of the target in a year.

8.3 Eligibility of Basic Training Providers

1. Basic Training Provider (BTP) is an entity whhas the facilities for imparting basic training tapprentices.
2. Types of BTPs:
   • Government & Private Industrial Training Institutes.
   • Industries/ establishments with in-house basic training facilities.
   • BTP set up/supported by Industry clusters
3. Selection of BTP:

• Government/Private ITI will automatically get selected as a BTP provided that they have spare seats (within overall affiliation) for running basic training. Spare shifts may be used for basic training.
• BTP will have tapply through portal for registration
• RDAT will review the application of BTP
• RDAT will arrange for physical inspection of BTP by a committee constituted for this purpose.
• Submission of Inspection report on-line by the committee.
• Review of inspection report and approval of BTP by RDAT
• Selection and offer tBTP on-line by RDAT.
• (IV) BTPs interested tavail the benefits of the scheme must fulfill the following:
• After approval, they can get registered
• BTP must be registered on the apprenticeship portal.
• BTP must have an aadhaar linked Bank Account.

8.4. Fields of apprenticeship training
Apprenticeship training can be provided tapprentices both in designated and optional trades.

1. Designated trade
   Designated trade means any trade or occupation as notified by the Government. At present, there are 259 designated trades are available for apprenticeship training (List is in annex-I).
2. Optional trade
   1. PMKVY/MES-Courses under PMKVY/MES with a duration of minimum 500 hrs. as basic training component and a one year practical content for on-the-job component designed by SSC/NCVT will be declared as optional trades.
   2. Created by employer -n a trade decided by employer with a duration of minimum 500 hrs. as basic training component and a one year practical content for on-the-job component, designed by employer and uploaded on the apprenticeship portal.

List of courses under PMKVY/MES, which have been declared as optional trades, is given at Annexure-II (will be uploaded soon).

8.5 Duration of Apprenticeship Training

8.6. Contract of apprenticeship
Employer may shortlist candidates’ specific tsector, trades, region etc. and offer letters tcandidates for engaging through portal. Employer may alsselect apprentices off-line and upload the details of apprentices before start of apprenticeship training on the portal. Contract of apprenticeship must be entered between apprentice and the employer. The contract of apprenticeship must be registered with concerned Apprenticeship Adviser through the portal.

9.0 Processing of Claims

9.1 Payment of reimbursement claims towards stipend tthe Employers

1. (Payment of full rate of prescribed stipend, including Government of India’s share shall be paid tapprentices by the establishment through the aadhaar linked bank accounts of apprentices. For this purpose, the employers are required tseek bank details from the apprentices.
2. Establishments are required tupload a proof for payment of full amount of stipend tthe apprentice alongwith the attendance particulars. Government of India’s share will be reimbursed on a quarterly basis by the respective RDAT or SAA.
3. Concerned RDATs/States will verify the information uploaded by the establishment and on confirmation of the training conducted and full amount of stipend paid, they will reimburse the payment testablishments’ bank account within 10 days from the receipt of claims from the employers.
4. Payment for the last quarter shall be made only after passing the final trade test by the apprentice and adjusting for dropouts.
5. Employers will have tsign a undertaking tinform the concerned RDAT/SAA about any dropouts.

9.2 Sharing of Basic Training Cost tBasic training Providers
The following procedure shall be adopted under the scheme for payment of basic training cost i.e. Rs. 7500/- per apprentice for 500 hours/3 months:

1. RDATs/States will make the payment towards cost of basic training tBasic Training Providers through their bank account. Rs. 5000/- per apprentice as a basic training cost shall be made after successful completion of basic training and the remaining basic training cost i.e. Rs. 2500/- per apprentice shall be paid after completion of apprenticeship training by the apprentice.

10.0 Monitoring of the establishments

• Monitoring is required tascertain the status of implementation of the scheme. Therefore, it is expected that 5% t10% of the total beneficiary establishments under the scheme would be subject tactual physical verification every year. They will be selected on a computerized random basis.

11.0 Eligibility and role of Brand Ambassadors

• Have undergone apprenticeship training and are successful in their field.
• Employers engaged or engaging apprentices.
• They will be selected/appointed by respective RDAT’s.
• Brand ambassadors will be paid @ 2500/- per day whenever they are called for any workshops/seminar/meeting. They would alsbe reimbursed travel expenses at actuals whenever they are required ttravel.

National Apprenticeship Promotion Scheme (NAPS)

Objective

1. Sharing of stipend with employers ta maximum limit of Rs. 1500 per month per apprentice
2. Sharing of Basic Training Cost with Basic Training Providers ta maximum limit of Rs. 7500 for 500 hours/ 3 months per apprentice

Eligibility and Requirements for Employers

1. Employer validation through TIN/TAN and EPFO/ESIC/LIN/ any other identifier decided by Govt.
2. Aadhar linked bank account

Eligibility and Requirements for Basic Training Providers (BTP)

1. Government and Private ITI having spare seats (with in overall sanctioned seats)
2. Establishments with in-house basic training facilities
3. BTP set up/supported by industry clusters
4. Physical verification of basic training facilities by RDAT
5. BTP must have Aadhar linked bank account

General

1. Mandatory for Establishments, Apprentices and BTPs tregister and engage apprentices through portal, apprenticeship.gov.in.
2. Contract registration through portal is must for designated and optional trades

For more details see NAPS-Guidelines in News & Updates section on apprenticeship.gov.in