CPSEs asked to ensure that apprentices comprise 2.5 percent of their workforce
GN Bureau | May 17, 2016
The government wants central public sector enterprises (CPSEs) to significantly increase the number of apprentices they train. It has asked all profitable CPSEs to ensure 2.5 percent of their total workforce comprise of apprentices, in order to expand the country’s skilled workforce.
To build vocational and technical training frameworks and to bridge a wide gap between demand for and supply of skilled manpower, prime minister Narendra Modi had launched the Skill India Mission in 2015.
In a letter written to aviation minister Ashok Gajapathi Raju that was cited by Mint, skill development minister Rajiv Pratap Rudy has said, “Now establishments are required to engage numbers of apprentices equivalent to a minimum of 2.5% and a maximum of 10% of the total workforce, including contractual workforce”. The requirement was among the changes to the Apprentices Act in 2014. The letter, which has been written to all ministries that oversee CPSEs, indicated it was more than just a request.
“I request your kind personal intervention to ensure the engagement of apprentices to the maximum of 10% of the total strength including contractual workers in all CPSUs under your ministry,” Rudy added.
India will require nearly 120 million more workers by 2022, and equipping them with the skills required by various industries would be crucial to reaping the economic benefits of India’s young demographic. More than 90 percent of these workers will be needed in 10 sectors, led by retail and construction and real estate.
To achieve such targets, India changed the Apprentices Act of 1961, with effect from December 2014, to make it more attractive to both young job market entrants and corporations.