implementation completion report...
TRANSCRIPT
Document of
The World Bank
FOR OFFICIAL USE ONLY
Report No: 19367
IMPLEMENTATION COMPLETION REPORT
INDIA
VOCATIONAL TRAINING PROJECT(CREDIT 2008-IN/LOAN 3045-IN)
May 31, 1999
Education Sector UnitSouth Asia Region
This document has a restricted distribution and may be used by recipients only in theperformance of their official duties. Its contents may not otherwise be disclosed withoutWorld Bank authorization.
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CURRENCY EQUIVALENTS
Fiscal Year Exchange Rate Comment(April 1- March 31) (Indian rupee-
Rs./US$)1989-90 16.66 Official Rate1990-91 17.95 diito1991-92 24.52 ditto1992-93 26.41 ditto
1993-94 31.36 Unified Rate1994-95 31.40 ditto1995-96 33.46 ditto1996-97 34.45 ditto1997-98 37.13 ditto1998-99 42.03 ditto
Note: A dual exchange rate system was created in March 1992, with a free market rate for about 60% of foreign exchangetransactions at a rate of US$1.00 = Rs. 30.65. The exchange rate was reunified at the beginning of March 1993 at the freemarket rate.
ABBREVIATIONS AND ACRONYMS
ATI - Advanced Training InstituteAVTS - Advanced Vocational Training SystemBTC - Basic Training CenterCII - Confederation of Indian IndustriesCPIU - Central Project Implementation UnitCSTARI - Central Staff Training and Research InstituteDEA - Department of Economic Affairs, Ministry of FinanceDGET - Directorate General of Employment and TrainingDGS&D - Directorate General of Supplies and DisposalEFC - Expenditure Finance CommitteeGOI - Government of IndiaIBRD - International Bank for Reconstruction and DevelopmentIDA - International Development AssociationIF - Internal Finance division, MOLITI - Industrial Training InstituteMOL - Ministry of LabourMRC - Media Resource CenterNCVT - National Council of Vocational TrainingNTPC - National Thermal Power CorporationNVTI - National Vocational Training Institute for WomenNVTS - National Vocational Training SystemRIC - Related Instruction CenterRVTI - Regional Vocational Training Institute (for Women)SDR - Special Drawing RightsSPIU - State Project Implementation UnitUT - Union TerritoryVT - Vocational TrainingWITI - Industrial Training Institute for Women
Vice President : Mieko NishimizuCountry Director : Edwin R. LimSector Manager : Ralph W. HarbisonTeam Leader : Edward H. HeneveldTask Leader : Shashi Kant Shrivastava
FOR OFFICIAL USE ONLY
IMPLEMENTATION COMPLETION REPORT
INDIAVOCATIONAL TRAINING PROJECT
(Cr. 2008-IN/Ln. 3045-IN)
TABLE OF CONTENTS
PREFACE
EVALUATION SUMMARY ........................................................... i
PART I: PROJECT IMPLEMENTATION ASSESSMENT ..................... 1
A. Project Objectives ........................................................... 1B. Achievement of Project Objectives .......................................... 2C. Implementation Record ...................................................... .. 6D. Project Sustainability ......................................................... . 9E. Bank Performance ........................................................... 9F. Borrower Performance ......................................................... 10G. Assessment of Outcome ........................................................ 10H. Future Operation ........................................................... 11I. Key Lessons Leamed ........................................................... II
PART 2: STATISTICAL TABLES ................................................... 13
LIST OF TABLESTable 1 Summary of Assessents .13Table 2 Related Bank Loans/Credits .14Table 3 Project Timetable .14Table 4 Loan Disbursements: Cumulative Estimated and Actual 15Table 5 Key Indicators for Project Implementation .16Table 6 Key Indicators for Project Operation .17Table 7 Major Studies Included in Project .20Table 8A Project Costs .22Table 8B Project Financing .22Table 9 Economic Costs and Benefits .22Table 10 Status of Legal Covenants .23Table 11 Compliance with Operational Manual Statements .25Table 12 Bank Resources: Staff Inputs .25Table 13 Bank Resources: Missions .26
ANNEXESAnnex A Mission's Aide MemoireAnnex B Borrower's Contribution
This document has a restricted distribution and may be used by recipients onlyin the performance of their of ficial duties. Its contents may not otherwise bedisclosed without World Bank authorization.
IMPLEMENTATION COMPLETION REPORT
INDIA
VOCATIONAL TRAINING PROJECT(Cr. 2008 IN/Ln. 3045 IN)
PREFACE
This is the Implementation Completion Report for the Vocational Training Project inIndia for which IDA Credit 2008-IN in the amount of SDR 189.2 million (US$250.0 millionequivalent) and IBRD Loan 3045-IN in the amount of US$30.0 million was approved onApril 27, 1989 and made effective on August 8, 1989. Although approved originally as anIDA/IBRD blended project, the IBRD loan component was cancelled on December 5, 1991at the Borrower's request. Four cancellations in December 1991, May 1993, March 1997and November 1997 reduced the total IDA credit to SDR 101.3 million. Devaluation of thenational currency by over 250 percent during the project period led to most of thiscancellation.
The Credit/Loan closed on December 31, 1998 instead of the original closing date ofDecember 31, 1996. The project was allowed a one-year extension to reach a satisfactorylevel of success, making up for the time lost in start-up difficulties and due to suspension ofdisbursements for six months following the mid-term review. In December 1997, IDAagreed for another extension of one year, but only for three critical components of theproject. The last disbursement took place on May 24, 1999 after which time a balance ofSDR 12.98 million was cancelled.
The ICR was prepared by Messrs. S. K. Shrivastava (Task Team Leader), Y. Saran(Consultant) and G. S. Chandran (Consultant) of Education Sector (SASED) of South AsiaRegion. The report was reviewed by Messrs. Heneveld (India Education Team Leader),Harbison (Sector Manager, SASED), Hinchliffe (SASED), Marke (LOAAS), Krishnan(PDAT/SACIF), Bhandari (Operations Advisor, SACIF) and Ms. Imamura (LEGSA). It waspeer reviewed by Mr. Middleton (EACTF) and Mr. Cambridge (SAROQ). The draft wasalso seen by Mr. Colletta (SDVPC), who led the project preparation team in 1988-89, andMr. Skolnik (Sector Manager, SASPH), who guided the project from 1989 to 1997 asDivision Chief. The Borrower provided comments and conducted a separate evaluation ofthe project that is included, in an unedited form, in Annex B.
Preparation of the ICR was begun during IDA's final supervision-cum-ICR mission,January 28 - February 11, 1999. It is based on the materials in the project files, missionsobservations from the field trips, discussions with teachers, students and employers, anddiscussions with various institutions including the Central Project Implementation Unit (CPIU),State Project Implementation Units (SPIUs), and officials of the Government of India and StateGovernments.
NIA
VOCATIONAL TRAINING PROJECT(Cr. 2008-IN/Ln. 3045-IN)
IMPLEMENTATION COMPLETION REPORT
EVALUATION SUMMARY
1. Introduction: The project was the first IDAJIBRD assisted project in the TechnicalEducation and Vocational Training sector in India. It was appraised in November 1988 andapproved by the Board in April 1989. It became effective on August 8, 1989 and closed onDecember 31, 1998 after two extensions of the closing date.
2. Project Objectives: It supported the Ministry of Labour's (MOL) long-term program tomodernize and restructure the National Vocational Training System (NVTS), and ultimately,improve the productivity of skilled and semi-skilled workers in the industrial and service sectors.The primary objectives of the project were to: (a) improve the quality and efficiency of craftsmanand apprenticeship training; (b) expand and diversify the advanced training programs; and (c)strengthen the NVTS planning and management capacity. The participation of women was to beincreased in all these programs.
3. The project was timely and its objectives were clear, relevant to MOL's long-termprogram to modernise and restructure NVTS, and rightly aimed at revamping the system.Objective-wise, the financial allocations at appraisal were - Modernising the Craftsman andApprenticeship Training, 75.5%; Advanced Training Programs, 17.2%; and NVTS Planning andManagement, 7.3% of the total project cost (including contingencies) of US$429.8 million (Rs.6877.9 million).
4. This project had its origins in the World Bank's efforts in the late 1980s to enter into theEducation sector in India. This first project, though rather ambitious and highly centralised withmany associated problems, led to a series of Bank-assisted projects in technician education andprimary education with very large investments.
5. Implementation Experience and Results: The project review reports indicate slowprogress during the first four years of project implementation but significant improvement duringlater stages in all components implemented by the States. Finally, all States reached theirphysical targets, with minor shortcomings in Bihar, Haryana, Assam and West Bengal. The Statecomponents accounted for about 85% of the project investments.
6. The project complexity and over-centralisation resulted in co-ordination problems anddelays. The large number of project components - about 20 - covering most central institutionsand 565 Industrial Training Institutes (ITIs) in 28 States and Union Territories made theimplementation difficult. Creation of minimum infrastructure in the project implementation unitsat the Central (CPIU) and State levels (SPIUs) took about two years. Problems in timely releaseof State share of funds and the central control exercised by the MOL, requiring States to seekfrequent approvals, made the project implementation difficult. The MOL's Directorate General of
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Employment and Training (DGET) -- responsible for oversight and the CPIU responsible forproject implementation at national level - themselves faced a number of operational constraints(with no powers for financial approvals, creation of posts, or staff appointments) limiting theircapacity to make timely implementation decisions resulted in delays, especially in the centralcomponents. These difficulties persisted and led to restructuring of the project and re-setting oftargets in December 1996.
7. The Credit had to be extended twice by a total of two years. After the first extension toDecember 31, 1997, IDA agreed to extend the closing date by another year for three criticalcomponents - Modernisation of Training Equipment, Hi-Tech Training, and Establishment ofManagement Information System (MIS). For the remaining sixteen components, the projectclosed on December 31, 1997.
8. In spite of the many problems listed above, the project has made critical contribution tothe future growth of NVTS in the following two areas: (a) a draft paper proposing new policyinitiatives for vocational training has been prepared and reviewed by an Expert NationalCommittee comprising representatives of all stakeholders. The proposals are awaiting finalreview by NCVT and would then be sent to the Union Cabinet. The new policy includesdecentralization, involvement of industry in the management and financing of vocational training(VT), and flexibility in program design and delivery. This goes much beyond the anticipatedscope of the Industry-Institute Cooperation proposed in the project and is likely to establish alasting partnership with industry in the management and financing of VT; and (b) output from thenew Women's Industrial Training Institutes (WITI) exceeded the target by 52% - reported outputis about 24,300 during the project period against the target of 16,000. The training capacity forWITIs increased by 119% (from 20,000 to 43,800) and some States have started reservations forwomen in general ITIs also. The project has thus been successful in increasing the percentage ofwomen enrollment in vocational training and this trend deserves all support of MOL and the StateGovernments.
9. With the exception of the following, all covenants have been complied with fully or in amanner acceptable to the Bank (Table 10): (a) there were substantial delays in staff appointmentand utilisation of technical assistance; this led to suspension of disbursements during July 1994-January 1995; (b) there were four occasions when audit report submissions from some Stateswere delayed resulting in temporary suspension of the SOE (statements of expenditure)procedure for disbursements for the whole project (Table 11); and (c) completion of four studiesagreed during project negotiations were delayed by a few months.
10. The total project cost at appraisal was estimated as US$429.8 million (Rs. 6877.9 million,with base cost of Rs. 4907 million) of which the Bank was to finance SDR 189.2 million as IDACredit and US$30 million as IBRD Loan; GOI was to finance the remainder of the project cost.The significant Rupee devaluation (by over 250% during the project) increased the proceeds fromthe Credit/Loan, which were partially offset by: (a) increased percentage of disbursementsagainst all categories of expenditure, requested by the Borrower; (b) the cancellation of SDR 29.5million and the entire IBRD loan of US$30 million in December 1991. In May 1993, anothercancellation of SDR 35.7 million was made. After project restructuring, further cancellations ofSDR 13 million in FY97 and SDR 9.7 million in FY98 were made at the request of the Borrower.The total Credit/Loan was thus adjusted from SDR 189.2 million plus US$30 million to onlySDR 101.3 million in the IDA Credit. The final project cost was about US$163.5 million (about
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Rs. 5330 million equivalent). Final disbursement took place on May 24, 1999 after which time abalance of US$17.468 million (SDR 12.98 million) was cancelled.
11. The Credit agreements were amended at the request of the Borrower four times during theproject. These included: (i) revision in ceilings for civil works and prudent shopping (April1991); (ii) revision in percentage of expenditure to be financed by IDA (Dec. 1991) (iii)restructuring - revision of project description (Schedule 2) (April 1997); (iv) minor amendment toSchedule 2 (paragraph 3b) on Hi-Tech Training (December 1997).
12. In physical terms, the project reached most of its targets in the State components (Detailsin Table 5). In the Central institutions, targets remain partially achieved. It resulted inestablishment of 100 new ITIs for women; introduction of 487 new trades at 268 ITIs; partialmodernization of 378 ITIs; creation of maintenance system in 19 States - each with a State levelworkshop and maintenance cells in selected ITIs; creation of 18 Basic Training Centers and 44Related Instructional Centers which have trained over 95,000 industrial workers; and introductionof Advanced Training Programs and some Hi-Tech Training programs at selected ITIs andcentral institutions. Some 33,000 trainees (against the project target of 17,000) have undergoneadvanced vocational training. The curricula for most trades are revised and instructional materialdeveloped and distributed for a few popular trades. Most of some 480 constructions arecompleted; however, all five major constructions planned for central institutions were droppedduring project restructuring due to delays. Against a target of 4200 new instructors, 3784 areappointed. In instructor training, the target is exceeded; some 10,000 instructors (against theoriginal target of 5500) have undergone training varying from two weeks to a year.
13. Major outcomes of the project, as expressed by sample beneficiary groups of students,teachers and principals, and representatives from industry during three workshops conducted bythe ICR mission are: modernization of workshops; systematic faculty development; andinteraction between industry and ITIs. The beneficiaries desired that these should all becontinued during the operational phase.
14. The services of professionals within and outside the NVTS were well utilised inmonitoring, evaluation, and development of strategies. Some examples include: (a) a tracer studywas completed by the Indian Statistical Institute in 1997 in the States of West Bengal, TamilNadu, Delhi, and Gujarat. This study confirmed gains in the external efficiency in comparison tonon-project institutions; (b) an impact study, completed by the CPIU and SPIUs covering 7 States(Rajasthan, Maharashtra, Goa, Tamil Nadu, Karnataka, West Bengal, and Orissa), confirmedsubstantial internal efficiency gains in project institutions; and (c) in 1998, the DGET in closecollaboration with the Confederation of Indian Industries (CII) assessed the curricula, facilitiesand the training process in 7 Northern and 4 Western States. This evaluation confirmed adequateuse of modem equipment, closure of obsolete trades not needed by the labour market, and majorgains in the percentage of equipment being operational.
15. The above-mentioned sample-studies showed: improvement in overall operationalefficiency of project ITIs by 10%; improvement in pass- rate ranging between 6-20%; a decreasein drop-out rate by 3-20%; an increase in equipment being operational from a pre-project statusof 50% to 92% at project closing; and employment rate of project ITI trainees improved frompre-project rate of 50% to about 65% at project closing. The employment rate of trainees fromproject ITIs was significantly better than those from other ITIs.
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16. Key factors which helped in project implementation were: (a) strong commitment anddesire of concerned officials of GOI and many States to make a difference in the system; (b)appropriate leadership in many project institutions; (c) close interaction amongst States duringjoint reviews of all States by GOI and the Bank initiated from 1995; (d) significant involvementof industry in reviews and policy reform planning. Some key factors that affected projectimplementation adversely included: (a) lack of empowerment of DGET/CPIU/SPIUs and projectinstitutions and over-centralisation; (b) non-familiarity with the Bank procedures and frequentchanges in senior officials both in GOI and in the States; (c) delays in creation and filling of keyposts; and (d) poor performance of construction agencies (State and Central Public worksDepartments) and central procurement agency/consultants (DGS&D and NTPC).
17. The MOL, DGET and State officials appreciate the Banks' performance in projectpreparation, and in supervision during the last 4 years. They feel that the Bank played aconstructive role in identifying and addressing the implementation issues. The Bank, however,underestimated the issue of the project's complexity. Apparently, the appraisal process failed toidentify the institutional and systemic weaknesses that delayed implementation for four years. Italso did not attempt to suggest any alternative to the very complex internal project managementand financing structure. The implementation problems that surfaced immediately aftereffectiveness were not foreseen. It is apparent that the project was prepared and appraised underextra-ordinary circumstances when India was facing a major financial crisis and the Bank wantedto respond quickly with a possibility of entry into the field of education and training in India. Toa large extent, the Bank's decision to transfer the responsibility for project supervision to theNew Delhi Office and to place a vocational/technical educator there mid-way through the projectenhanced its capacity to respond to emerging problems and expeditious clearance of diverseprocurement issues.
18. The DGET and the States are critical of the Bank on two counts: (a) the Bank's initialrefusal to agree to extend the project when implementation had picked up momentum and thenfinally agreeing to give a one-year extension only two weeks before the closing date. Thisbelated decision was made when States were winding up the SPIUs or the experienced seniorstaff were looking for other assignments. This slow down resulted in another one-year extensionfor some components; and (b) the Bank's interaction with the States and SPIUs was missing inthe earlier stages (perhaps due to travel restrictions imposed by the Borrower) and could haveaccelerated progress as it did in the final 3-4 years. Overall, the project States and DGETconsidered the Bank's role to be highly professional, helpful and constructive
19. The Borrower's performance was deficient during the first four years and satisfactory inthe later years. The Borrower's project preparation was effective with clearly defined objectivesand programs. There were, however, noticeable mismatches between the Detailed Project Report(DPR) of MOL prepared in 1989 and the SAR/Credit Agreements. The Internal Finance treatedthe DPR attached to the EFC document with a defined total cost in Indian Rupees as a strict guideand did not allow flexibility. These led to different perceptions/interpretations between the Bankand the GOI during implementation that should have been resolved at the early stages of theproject.
20. The project implementation staff in States and at the CPIU was professionally qualified,but lacked prior experience in project management and implementation of Bank projects withsuch a comprehensive and complex package of reforms. Project implementation suffered fromfrequent changes of the Director General of DGET and the senior State officials, from abnormal
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delays in creation of key additional staff positions, their selection and appointment, and fromdelays in Central approvals to schemes already agreed in the project. The changes in the CentralGovernment and Governments in 28 State/ Union Territories added to delays in approvals andtimely release of funds. However, despite all these factors the concerned officials at the Centerand States ensured success of the project in large measure with their extra-ordinary efforts duringthe last three years of the project.
21. Assessment of Outcome: Assessment of the overall outcomes of the project is complex.If delays and cancellations are ignored, the project outcome for the State components covering85% of project costs is satisfactory. In summary, the achievement of overall objectives is asfollows: (a) the sectoral policy objectives were generally achieved. The reduction in staffvacancies, training of instructors, start of demand-driven courses in the States is close to targets.With the development of a revised policy framework, some important steps regarding governanceand financing of VT are underway; (b) the Institutional Development objectives were partiallyachieved. Schemes such as Media Resource Centres, Trade Testing and Certification Cells,equipment maintenance system, and the MIS could take off only after long delays. Althoughmost of these initiatives are in place, their continued effectiveness will only be known during theoperational phase; (c) the Physical objectives were generally achieved in the States' schemes butonly partially in the central schemes. Civil works, equipment procurement, training andrecruitment of staff-all were successfully completed by the States whereas the schemes in thecentral sector were cancelled during restructuring due to land acquisition issues and significantstaff vacancies; (d) Poverty reduction objective has been adequately achieved. VocationalTraining is mostly availed of by the weaker sections of the society to improve their employmentprospects and earning capacity. Introduction of new trades and the increase in output in numbersas well as enhancements in quality have contributed to poverty reduction; and (e) the genderconcerns have been adequately addressed. Output from the NVTS in terms of number of womentrained has exceeded the SAR targets by 52%.
22. Sustainability and Future Operations: The sustainability of most components of theproject is likely. The MOL, as well as the States, strongly supports the view that a highly skilledtechnical workforce is necessary to maintain the country's competitiveness in the emerging globaleconomy. All new ITIs and new trades will be supported fully by the States. Government ofIndia is continuing the schemes of modernization, staff training, MIS, AVTS, and Hi-Techtraining. It will take sometime before the new RVTIs and the Apex Hi-Tech Training Center areestablished as planned. Only the pilot scheme of training for self-employment may not continuein most places due to poor response. An operational plan with monitoring and impact indicators,acceptable to Bank, has been carefully prepared and summarized in Table 6. During theoperational phase, adequate funds should be available to complete unfinished works and tocontinue quality improvement activities.
23. Recent efforts made by the MOL in improving governance and funding of traininginstitutions to accelerate the quality improvement activities with the active participation from theindustry have been successful in many States. Many new models have emerged resulting in anew draft policy for NVTS. Future support, if any, from the Bank, should focus on support tothis new policy, which is now in the final stages of approval.
24. Key Lessons: Following is a summary of key lessons learned during this first Project inthis sector in India:
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(a) The project appraisal should have taken a closer look at the institutional capacityrelative to project complexity and identified institutional and systemic weaknesses thatdelayed project implementation;
(b) The EFC memo for such a comprehensive national project with interdependlentcomponents should discourage selectivity in component approval by the MOL'sInternal Finance during implementation. It should provide some flexibility duringimplementation and should also take into account normal price escalations andcurrency fluctuations, and should preferably be designated in SDRs. After approval ofthe EFC memo, further approvals of the project components should not be soughtduring the implementation stage;
(c) The project could have achieved greater success with more decentralization andflexibility to States and ITIs in the selection of trades according to local needs, in theprocurement of equipment, and in curriculum development;
(d) In a national project with a high degree of complexity, participatory approaches duringproject preparation and implementation that involved States, ITIs and otherprofessional institutions could have improved project ownership and outcomes;
(e) Frequent changes in the senior implementation staff should be avoided. Technicalassistance, especially training, should be provided to project implementation staff inBank procurement whenever a first project is approved in a sector;
(f) To avoid delays in project implementation, land acquisition and architectural design ofbuildings should start before negotiations. Any works not coming to the bidding stagewithin six months of the agreed schedule should be cancelled along with the otherrelevant components; and
(g) A field-based supervision with close interaction with the client and projectbeneficiaries proved to be very effective and economical.
INDIA
VOCATIONAL TRAINING PROJECT(Cr. 2008-/Ln. 3045-IN)
IMPLEMENTATION COMPLETION REPORT
PART I - PROJECT IMPLEMENTATION ASSESSMENT
A. PROJECT OBJECTIVES
1. Background: The project was the first IDA/IBRD-assisted project in the TechnicalEducation and Vocational Training sector in India. It supported the Ministry of Labour's (MOL)long-term program to modernize and restructure the National Vocational Training System(NVTS). During the late- 1980 when this project was prepared, substantial policy reforms wereintroduced by the Government of India (GOI) which resulted in higher growth rates (9% between1985-88) in the manufacturing sector. Continued support of this policy required more relevanttraining for industrial workers so as not to constrain economic growth. To ensure thatmanufacturing and service sectors fulfill their expected role of generating higher incomes andreducing poverty, overall efficiency of the training system and the quality of education andtraining that workers bring to the job, both in organized and unorganized sectors, had to beimproved. Main weaknesses were identified by DGET as: (a) the need to modernize/upgradeequipment, outdated curricula, shortage and limited skills of instructor and instructional resourcesto satisfy changing needs of the growing industrial sector; (b) weaknesses in NVTS to cope withtrade testing to ensure standardization and quality control, inappropriate planning, managementand monitoring which effects efficiency; (c) poor participation of women in the industrial laborforce; (d) inadequate opportunities for organized employment of the workers from poor socio-economic background; and (e) lack of training which supports self employment of graduates.
2. To address these issues the MOL sought World Bank financing through the Departmentof Economic Affairs (DEA) of Government of India. A project proposal prepared by DGET withassistance from ILO and UNDP in 1983 was substantially modified and submitted to the Bank.The project was appraised in November 1988, approved by the Board in April 1989, and becameeffective on August 8, 1989. It closed on December 31, 1998 after two extensions of the closingdate.
3. Project Objectives: The primary objectives of the project were to: (a) improve thequality and efficiency of basic craftsmen and apprenticeship training; (b) expand and diversifythe advanced training programs; and (c) strengthen the NVTS planning and managerial capacity.The participation of women was to be increased in all these programs.
4. The quality improvement objective of craftsman and apprenticeship training was to beachieved through: (a) modernising workshops in Industrial Training Institutes (ITIs) establishedbefore 1969; (b) extending trade coverage in the ITIs, National Apprenticeship Training Scheme,Basic Training Centres (BTCs) and Related Training Centres (RTCs); (c) provision of audio-visual aids and strengthening instructor training programs; (d) establishing an equipmentmaintenance system; (e) introduction of post-ITI courses on a pilot basis; and (f) increasingwomen's access to training in modern sector trades by constructing new ITIs for women and
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adding women's wings in existing ITIs; establishing new Regional Vocational Training Institutes(RVTIs) for women; and introduction of new trades in existing ITIs for women; and (g)strengthening the curriculum and methods development wing of NVTI.
5. The Expansion of Advanced Training Programs was to be achieved by: (a) introducingnew trades at advanced skill levels in existing Regional Vocational Training Institutes (RVTIs),and National Vocational Training Institute (NVTI); (b) upgrading facilities at selected ITIs andexisting Advanced Training Institutes (ATIs) for Advanced Vocational Training (AVTS); and (c)and establishing a new Hi-Tech Training Centre for electronics, computers and robotics.
6. The objective of Improving NVTS Management and Planning at DGET andcorresponding State Directorates of Training was to be achieved through: (a) Improving NVTSPlanning and Management capability; (b) strengthening of NVTS monitoring and evaluat;ionsystem; (c) improving the trade testing, certification and documentation processes; (d)strengthening DGET's Women VT unit; and (e) reorienting CSTARI to improve supervisorytraining and research in vocational training.
7. The project was timely and its objectives were clear, relevant to MOL's long termprogram to modemise and restructure NVTS and rightly aimed at revamping the system.Objective-wise the financial allocations at appraisal were - Modernizing the Craftsman andApprenticeship Training, 75.5%; Advanced Training Programs, 17.2%; and NVTS Planning andManagement, 7.3% of the total project cost (including contingencies) of US$429.8 million (Rs.6877.9 million).
8. This project had its origins in the World Bank's efforts to enter into education in India.This first project, though rather ambitious and highly centralised with many associated problems,led to a series of Bank-assisted projects in technician education and primary education with verylarge investments.
B. ACHIEVEMENT OF PROJECT OBJECTIVES
9. The project review reports indicate slow progress during the first four years of projectimplementation but significant improvement during later stages in all components implementedby the States. Finally, all States reached their physical targets, with minor shortcomings in Bihar,Haryana, Assam and West Bengal. All schemes except Modernisation of Equipment, Hi-TechTraining, MIS and Technical Assistance closed on December 31, 1997. However, progress inclosed components (with Borrower inputs only) was regularly reported in reviews during theextended period for remaining components. Component-wise status is summarised below:
OBJECTIVE 1: Quality Improvement of Craftsman and Apprenticeship Programs
10. The status of achievement of Quality improvement Objective has been satisfactory.Sample tracer studies co-ordinated by CSTARI and impact studies conducted in seven States(Goa, Kamataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, and West Bengal) provideevidence of quality improvement. However, due to delays in equipment procurement andinstallation, and teacher recruitment and training, the full impact on quality of training is yet to beassessed. The progress is as follows:
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(a) Modernization of Equipment in existing ITIs: Against the revised allocation of Rs.2873 million (appraisal estimate - Rs. 1590 million) for equipment, about Rs. 2500million were utilized to replace obsolete equipment in 378 ITIs. While the States ofMaharashtra, Rajasthan, MP and Orissa exceeded the targets, some States (AP,Bihar, UP) could not take advantage of additional allocations.
(b) Introduction of New Trades: The targets for expanding the training capacity havebeen met with the introduction of 370 (of 376) new trades in 204 ITIs and to datesome 28,000 students have completed their training in the new trades. The onlyshortages are in Assam and West Bengal, which plan to start new programs by end-1999.
(c) AV Aids and Media Resource Centers (MRCs): 387 ITIs have been provided withAV equipment. After considerable delays, 10 MRCs were established - 7 at ATIs,one each at a CTI, an NVTI, and an RVTI. About 80% equipment has been procuredand is in use. These MRCs were to train 3200 ITI instructors in upgradinginstructional capabilities of trainers in the use and development of instructionalsoftware through courses of 6. weeks duration. Because of the delays, the Statesutilized services of MRCs at ATIs and State institutions and trained some 6200 staffthrough courses of only 2 weeks duration with the Bank approval. Most Statesexceeded the revised targets. The major shortfalls were in Kerala (22%) and Assam(21.5%), due to restrictions on travel outside the State. Field visits and discussionswith the instructors and the students confirmed use of AV equipment on a limitedscale for enhancing the quality of instruction.
(d) Equipment Maintenance System: To develop equipment maintenance capability inthe NVTS, 6 Regional Service Centers, 19 Equipment maintenance Workshops indifferent States and 93 maintenance Cells (of 100 planned) have been established.Four Cells in West Bengal will be operational soon. Uttar Pradesh and J & K did notestablish 3 Cells. All maintenance staff are trained. A study of 35 ITIs in 7 Statescommissioned by the DGET concluded that percentage of machines in workingcondition has increased from a pre-project status of 50% to 92% at project closing.
(e) Post-ITI Courses for self-employment: Facing operational difficulties and lack ofresponse from ITI trainees, the scope of this pilot scheme was scaled back after astudy, in 1995, to 41 centers from the appraisal target of 100. Finally, 36 ITIs in 11States have started these programs and trained some 1200 students during the life ofthe project. Other than recording reasons for lack of response from ITI graduates, noserious efforts were made to improve program design and delivery or to providequalified instructors or appropriate infrastructure. It is highly likely that thesecourses will fade away and the pilot scheme will be considered unsuccessful.
(f) Basic Training (BTC) and Related Instruction Centers (RI): To improve and expandApprenticeship Training Programs, two components had varying degree of successwith considerable delays: (i) as per the revised target 18 BTCs (in 17 States and oneat the Regional Directorate for Apprenticeship Training, Kanpur) have beenestablished, which have provided basic training to some 2800 apprentices in tradesnot adequately covered by ITIs; (ii) all the planned 44 RICs (38 in 18 States and 6 inRegional Directorates of Apprenticeship Training ) have been established and trained
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some 95,400 apprentices. States have reported 5-23% increase in pass rates inapprenticeship programs.
(g) Women's Training: To improve access to women for training in modem trades, fourschemes have been implemented. Targets for the two State schemes (i and ii below)have been achieved and even exceeded in some States but the Central schemes (iiiand iv) have met with only marginal success: (i) All 100 New Women ITIs/Wings(WITIs) have been established (estimated cost Rs. 615 million) and are functionalwith some 24300 (against a target of 16000) women having completed their trainingduring the project; (ii) 117 (of 120) demand-driven courses in 19 new trades covering64 existing WITIs have been introduced with reported output of 6,600 graduates; (iii)the target of establishing 4 new RVTIs could not be fully achieved due to delays insite acquisition. These centers are functioning in temporary locations with limitedfacilities and staff shortages; and (iv) the scheme of strengthening the existing RVTIsand NVTI could not get planned inputs due to delays but has still resulted inproducing some 1600 graduates against the target of 1304.
OBJECTIVE 2: Expanding Advanced Vocational Training Program
11. Overall, the objective of expanding advanced skill training for instructors and industryhas been partially achieved as summarized below:
(a) Expansion and Improvement of Advanced Vocational Training Programs: In theCentral sector, training in six ATIs has been strengthened and expanded in newareas. Advanced training facilities exist in 30 (of 33) ITIs. The remaining three inUP and Haryana will start operations in 1999. Total outputs reached 33,000 againstthe revised target of 17,000. Training outputs from MP and Orissa are low whileMaharashtra and Gujarat exceeded the targets. These institutions still suffer frominadequate staffing and equipment and will take some time and further investmentsto achieve the level of quality programs planned at appraisal.
(b) Apex Hi-Tech Center and Units: The outcomes of a TA contract which was signedwith GTZ in July 1995 include: (i) some 200 staff months of training (including 24staff months in Germany) provided to staff; and (ii) curricula developed after carefulneed assessment; and (iii) equipment lists prepared. The Apex Hi-Tech TrainingCenter (a key resource center) could not be established as planned. This is a majorshortfall in the achievement of project objectives due to delays in decision making.The Apex Center is now functioning with limited capacity in a temporary locationand one program for industry has been conducted recently. Some training has alsobeen provided to staff from 19 Units (located in 10 ITIs, 7 ATIs, NVTI and 1 RVTI)which will start offering Hi-Tech training programs in 1999, after equipmentinstallation is completed.
OBJECTIVE 3: Improving NVTS Planning Management and Supervision
12. The objective of improving planning and management was marginally achieved. Thestatus is summarized below:
5
(a) Improving NVTS Planning Management and Supervision: The ProjectImplementation Units at the DGET (CPIU) and 18 States (SPIUs) were establishedafter some delay and initial training was given to the newly recruited staff at the IndianInstitute of Management, Calcutta. In spite of adequate number of staff, these unitshave suffered from frequent staff changes at the senior level. A major achievement ofthe project has been in the development of closer interaction between industry andITIs. Major developments include - appointment of Advisory Committees; MOUsbetween CII and State Directorates; partnerships between some ITIs and companies;and more recently the joint management of ITIs by Govermment and the industry in thenorthern States. These positive and expanding changes appear to be experimental innature with support from the DGET. With appropriate policy changes, could providea major breakthrough in the governance of ITIs.
(b) Establishment of a Monitoring and Evaluation System: The lack of progress inthis sub-component, in spite of keen interest and initiative by some States, typicallyrepresents the reasons for delays in project implementation. Efforts were made bysome States (Maharashtra, Gujarat, Punjab and Karnataka) to develop and use MISmodules with their own efforts. According to Internal Finance (IF) of MOL thiscomponent required revision of the EFC even though it was included in the projectdescription of the Credit Agreement. Establishment of MIS could, therefore start onlyin May 1997, after the revised EFC Memo was approved. Work was started by theCPIU and its status is as follows: The MIS has been designed by the NationalInformatics Center (NIC) and will cover 18 States, CPIU, and the NIC; equipmentprocurement faced problems during the final stages and could not utilize project funds;5 core MIS modules are ready and field-tested; the remaining modules are underpreparation; and staff training will start after equipment installation. The MIS willnow be established with funds to be provided by the DGET for which there is a strongcommitment.
(c) Improving Testing, Certification and Documentation: The existing TradeTesting and Certification wing at DGET could derive only marginal benefits duringimplementation. Because of long delays in creation of key posts, the DocumentationCenter is still in a preliminary stage of development and has a long way to go before itprovides useful service to the NVTS. The outputs include a seminar, field testing oftwo question banks developed by the MOL's Central Instructional Media Institute(CIMI), and plans to introduce objective type tests for one trade in July 1999 - hardlyenough to initiate even a minor change in trade testing.
(d) Strengthening DGET Women's VT Unit: This component has resulted in theappointment of 10 additional staff and creation of a Directorate of Women Occupationresponsible for overall development, planning, and monitoring.
(e) Reorienting CSTARI: The capacity for expected research role of CSTARI,agreed at appraisal, could not be developed and this might restrict research capabilitythat was planned for the future developments in the NVTS. Although some additionalstaff and some equipment were provided, the TA provision (36 staff months ofconsultants and 22 months of training) to CSTARI was not utilized and an opportunityto reorient its activities has been lost. The activities performed during the project
6
implementation lag far behind the expectations at appraisal of 'a primary agent oforganizational change within the NVTS'.
13. Major outcomes of the project, as expressed by sample beneficiary groups of students,teachers and principals, and representatives from industry during three workshops conducted bythe ICR mission are: modernization of workshops; systematic faculty development; andinteraction between industry and ITIs, which should all be continued vigorously during theoperational phase.
14. Some Key Unanticipated Project Gains: In spite of the problems listed earlier, the projecthas achieved excellent results in two areas as summarized below. These developments go farbeyond the expectations of the SAR and are important contributions to the future growth of theNVTS. These developments require careful support to be fully entrenched in the VT system.
(a) A draft paper proposing new policy initiatives for vocational training has beenprepared and reviewed by an Expert National Committee comprising representativesof all stakeholders. The proposals are awaiting final review by the National Councilfor Vocational Training (NCVT) and will then be sent to the Cabinet. The newpolicy includes decentralization, involvement of industry in the management andfinancing of VT, and flexibility in program design and delivery. This goes muchbeyond the anticipated scope of the Industry-Institute Cooperation proposed in theproject and is likely to establish a lasting partnership with industry in themanagement of VT.
(b) Output from New ITIs for Women exceeded the target by 52% - reported outputduring the project period is about 24,300 against the target of 16,000. In addition,6,500 have been trained in new trades in existing WITIs and some States have startedreservations for women in general ITIs also. The project has been successful inincreasing percentage of women enrollment in vocational training and this trenddeserves all support of MOL and the State Governments.
C. IMPLEMENTATION RECORD
15. Implementation Experience: The large number of project components (about 20)covering central institutions and 565 ITIs in 28 States and Union Territories made theimplementation difficult. The central control exercised by the MOL required approvals at eachstage and further contributed to the complexity in implementing an already difficult project. Inthe earlier stages of implementation, therefore, the co-ordination problems slowed down progressand constrained the achievement of project objectives. The reality that DGET - responsible foroversight, and the CPIU - responsible for project implementation at the national level - faced anumber of operational constraints (with no power for financial approvals, creation of posts, orstaff appointments) limiting their capacity to make timely implementation decisions could not beforeseen during project preparation. These difficulties persisted and slowed downimplementation and led to a restructuring of the project and resetting of targets in December1996.
16. The Credit had to be extended twice by a total of two years. After the first extension toDecember 31, 1997, IDA agreed to extend the closing date by another year for three critical
7
components - Modemisation of Equipment, High Tech Training, and Establishment ofManagement Information System (MIS). For the remaining sixteen components, the projectclosed on December 31, 1997.
17. It appears that the Internal Finance Division (IF) of MOL was guided by only the EFCdocument and not by the Credit agreement in its strict financial control over the project. Theneed for approvals required at every stage was the single largest contributor to delays in theproject. The price escalations and contingencies were not allowed and the components could notexceed the EFC approved ceilings. Project entities lost all flexibility and could not use additionalfunds that became available due to a stronger SDR without revision of the EFC memo and thefirst such revision in 1996-97 took about one year.
18. The services of professionals within and outside the NVTS were well utilised inmonitoring, evaluation, and development of strategies. Some examples include: (a) a tracer studywas completed by the Indian Statistical Institute in 1997 in the States of West Bengal, TamilNadu, Delhi, and Gujarat. This study confirmed gains in the external efficiency in comparison tonon-project institutions; (b) an impact study, completed by the CPIU and SPIUs covering 7 States(Rajasthan, Maharashtra, Goa, Tamil Nadu, Kamataka, West Bengal, and Orissa), confirmedsubstantial internal efficiency gains in project institutions; and (c) in 1998, the DGET in closecollaboration with the Confederation of Indian Industries (CII) assessed the curricula, facilitiesand the training process in 7 Northern and 4 Western States. This evaluation confirmed adequateuse of modem equipment, closure of obsolete trades not needed by the labor market, and majorgains in the percentage of equipment being operational.
19. The above-mentioned sample-studies showed improvement in overall operationalefficiency of project ITIs by 10%; improvement in pass- rate range between 6-20%; decrease indrop-out rate by 3-20%; increase in equipment being operational from a pre-project status of 50%to 92% at project closing; employment rate of project ITI trainees improved from pre-project rateof 50% to about 65% at project closing. The employment rate of trainees from project ITIs wassignificantly better those than from other ITIs.
20. Project costs: The total project cost at appraisal was estimated as US$429.8 million (Rs.6877.9 million) of which the World Bank was to finance SDR 189.2 million as IDA Credit andUS$30 million as IBRD loan, GOI was to finance the remainder of the project cost. Thesignificant Rupee devaluation (by over 250% during the project implementation) increased theproceeds from the Credit/Loan, which were partially offset by (a) increased percentage ofdisbursements against all categories of expenditure at the request of the Borrower; (b) thecancellation of SDR 29.5 million and the entire IBRD loan of US$30 million in December 1991.In May 1993, another cancellation of SDR 35.7 million was made. After project restructuring,further cancellations of SDRB 13 million in FY97 and SDR 9.7 million in FY98 were made at therequest of the Borrower. The total Credit/Loan was thus adjusted from SDR 189.2 million plusUS$30 million to only SDR 101.3 million in IDA Credit. The final project cost was aboutUS$163.5 million (about Rs. 5330 million equivalent). Final disbursement took place on May24, 1999 after which time a, balance of US$17.468 million (SDR 12.98 million equivalent) wascancelled.
21. Credit amendments: The Credit agreements were amended at the request of theBorrower four times during the project. These included:
* Revision in ceilings for civil works and prudent shopping (April 1991)
8
* Revision in percentage of expenditure to be financed by IDA (December 1991)o Restructuring - Revision of Project Description (Schedule 2) ( April 1997)* Minor amendment to Schedule 2 (paragraph 3b) on Hi-Tech Training (December
1997).
22. Compliance with Covenants: With the exception of the following, all covenants havebeen complied with fully or in a manner acceptable to the Bank (Table 10): (a) there weresubstantial delays in staff appointment and utilisation of technical assistance; this led tosuspension of disbursements during July 1994-January 1995; (b) there were four occasions whenaudit report submissions from some States were delayed resulting in temporary suspension ofSOE (statements of expenditure) procedure for disbursements for the whole project (Table 1 l);and (c) completion of four studies agreed during project negotiations were delayed by a fewmonths.
23. Procurement and Staff Appointments: Procurement of works and equipment, and staffappointment were completed with considerable delays which necessitated two project extensions.
24. Of 480 civil works in the States, 473 are completed. The States faced the problem ofmultiple State- evel as well as Central approvals before inviting bids and the final award ofcontracts. The DGET approved the scope and estimated cost for works under each schemeduring the initial years of the project and transferred the Central shares on this basis. Manyw.orks faced delays resulting in price escalation. Any modifications and subsequent costescalation were not approved by the DGET for reimbursement purposes. However, with regularmonitoring by DGET, all but 7 works (which are also nearing completion) were finallycompleted. Some Central schemes also could not take off due to abnornal delays in siteacquisition, appointment of an implementation agency, or appointment of architects. This led tothe cancellation of all five major works in the Central sector by the Bank
25. Despite all efforts made by the CPIU and SPIUs, and two-year extension, someequipment could not be procured in time. The involvement of highly experienced NTPC andDGS&D as the procurement consultants/agency did not prove very effective and probably addedyet another layer of approval to the already complex and multi-layered approval process.However, the State level procurement was more efficient and even procured additional equipmentwhen NTPC could not handle certain packages. Due to financial and power crises, sornemanufacturers could not deliver equipment in time. Timely preparation of the equipmentspecifications, bid packages and institution-wise lists of requirements, greater penalty for delaysin equiprnent delivery, and removal of many layers of approval would have helped in minimizingsome of the delays in procurement.
26. The project suffered from the long time taken in creation of posts and appointment ofpersonnel through Public Service Commissions. Critical monitoring by the review missions andCPIUJ finally resulted in about 88% of the key posts filled. The central institutions continue tohave larger percentage of posts vacant.
27. Studies: All the four studies agreed during appraisal have been completed after minordelays. CPIU has reported completion of ten additional studies covering a wide range of criticalissues in the NVTS (Table 7). Some additional studies on Hi-Tech Training were carried outwith German assistance outside the project funding.
9
28. Major Factors which Influenced Implementation: Key factors which helped in projectimplementation were: (a) Strong commitment and desire of concerned officials of GOI and manyStates to make a difference in the system; (b) appropriate leadership in many project institutions;(c) close interaction amongst States during joint reviews of all States by GOI and the Bankinitiated from 1995; and (d) significant involvement of industry in reviews and policy reformplanning.
29. Some key factors that affected project implementation adversely included: (a) lack ofempowerment of DGET/CPIU/SPIUs and project institutions and over-centralisation; (b) non-familiarity with the Bank procedures and frequent changes in senior officials both in GOI and inthe States; (c) delays in creation and filling of key posts; and (d) poor perfornance ofconstruction agencies (State and Central Public works Departments) and central procurementconsultants (DGS&D and NTPC).
D. PROJECT SUSTAINABILITY
30. The sustainability of the project is likely. Project States have made provisions in theNinth Plan to ensure that incomplete components, which closed on December 31, 1997, would becompleted. Progress reports submitted by States indicate satisfactory progress with support fromonly State funds. All new ITIs and new trades will be supported fuilly by the States. Governmentof India is continuing the schemes of modernization, staff training, MIS, AVTS, and Hi-Techtraining. It will take sometime before the new RVTIs and the Apex Hi-Tech Training Center areestablished as planned. Only the pilot scheme of training for self-employment may not continuein most places due to poor response. An operational plan with monitoring and impact indicators,acceptable to the World Bank, has been carefully prepared and summarized in Table 6. Duringthe operational phase, adequate funds should be available to complete unfinished works and tocontinue quality improvement activities.
E. BANK PERFORMANCE
31. The MOL, DGET and State officials appreciate the World Bank's role in projectpreparation, and in supervision during the last four years. They feel that the Bank played aconstructive role in identifying and addressing the implementation issues. The Bank, however,underestimated the issue of the project's complexity. Apparently, the appraisal process failed toidentify the institutional and systemic weaknesses that delayed implementation for four years. Italso did not attempt to suggest any alternative to the very complex internal project managementand financing structure. The implementation problems that surfaced immediately aftereffectiveness were not foreseen. It is apparent that the project was prepared and appraised underextra-ordinary circumstances when India was facing a major financial crisis and the Bank wantedto respond quickly with a possibility of entry into the field of education and training in India. Toa large extent, the Bank's decision to transfer the responsibility for project supervision to theNew Delhi Office and to place a vocational/technical educator there enhanced its capacity torespond to emerging problems and expeditious clearance of diverse procurement issues.
32. The DGET and the States are critical of the Bank on two counts: (a) the Bank's initialrefusal to agree to extend the project when implementation had picked-up momentum and thenfinally agreeing to give a one-year extension only two weeks before the closing date. This
10
belated decision when States were winding up the SPIUs and the experienced senior staff werelooking for other assignments slowed down progress and resulted in another one-year extensionfor some components; and (b) the Bank's interaction with the States and SPIUs was missing inthe earlier stages (perhaps due to travel restrictions imposed by the Borrower) and could haveaccelerated progress as it did in the final 3-4 years. Overall, the project States considered Bank'srole to be highly professional, helpful and constructive.
F. BORROWER PERFORMANCE
33. The Borrower's project preparation was effective with clearly defined objectives andprograms. There were, however, noticeable mismatches between the Detailed Project Report(DPR) of MOL prepared in 1989 and the SAR/Credit Agreements. The Internal Finance treatedthe DPR attached to the EFC document with a defined total cost in Rupees as a strict guide anddid not allow flexibility or provisions for cost escalations or exchange rate variations during1989-96. These often led to different perceptions/interpretation between the Bank and the GOIduring implementation, which should have been resolved at early stages of the project.
34. The project implementation staff in States and at the CPIU was professionally qualified,but lacked prior experience in project management and implementation of such a comprehensiveand complex package of reforms having inter-related components supported by the Bank. Theproject's implementation suffered from frequent changes of the Director General of DGET andthe senior State officials, abnormal delays in creation of key additional staff positions and theselection and appointment of personnel, and in providing Central approvals to schemes alreadyagreed in the project. The changes in the Central Government and Goverrnents in 28 State/Union Territories added to delays in approvals and timely release of funds. However, despite allthese factors, the concerned officials at the Center and States ensured success of the project inlarge measure with their extra-ordinary efforts during the last three years of the project.
G. ASSESSMENT OF OUTCOMES
35. Assessment of the overall outcomes of the project is complex. In terms of timelyimplementation of components, the project did not give a satisfactory performance. If delays andcancellations are ignored, the project outcomes for the State components covering 85% of projectcosts are satisfactory. In summary, the achievement of overall objectives is as follows:
(a) the sectoral policy objectives were generally achieved. The reduction in staffvacancies, training of instructors, and introduction of demand-driven courses in the Statesare close to targets. With the development of a revised policy framework, some importantsteps regarding governance and financing of VT are underway;
(b) the Institutional Development objectives were only partially achieved. Schemes suchas Media Resource Centres, Trade Testing and Certification Cells, equipment maintenancesystem, and the MIS could take off only after long delays and although most of theseinitiatives are in place, their continued effectiveness would only be known during theoperational phase; Research, etc., did not reach critical mass to be sustained;
I1
(c) the Physical objectives were generally achieved in the States schemes but onlypartially in the central schemes. Civil works, equipment procurement, training andrecruitment of staff-all were successfully completed by the States whereas the schemesin the central sector were cancelled during restructuring due to land acquisition issues andsignificant staff vacancies;
(d) the poverty reduction objective has been adequately achieved. Vocational Training ismostly availed of by the weaker sections of the society to improve their employmentprospects and earning capacity. Introduction of new trades and increase in output innumbers as well enhancements in quality have contributed to poverty reduction;
(e) the gender concerns have been adequately addressed Output from the NVTS in termsof number of women trained has exceeded the SAR targets by 52%.
H. FUTURE OPERATIONS
36. The MOL as well as the States strongly supports the view that a highly skilled technicalworkforce is necessary to maintain the country's competitiveness in the emerging globaleconomy. Satisfactory future operation of the project would depend on the completion ofremaining incomplete tasks and availability of State/GOI funds. Table 6 provides a summary ofthe operational plan prepared by the Borrower and gives details of expected provision of fundsfor project supported or project initiated activities after the project closing. Continuation ofquality improvement activities (staff training, use of modern instructional aids and material,maintenance and up-gradation of infrastructure, advanced/hi-tech training, etc.) are an importantpart of this plan. The Operational Plan also provides indicators for monitoring and evaluation offuture operation.
37. Recent efforts made by the MOL in improving governance and funding of traininginstitutions to accelerate the quality improvement activities with the active participation fromindustry have been successful in many States. Many new models of governance have emergedresulting in a new draft policy for NVTS. Future support, if any, from the Bank should focus onsupport to this new policy, which is now in the final stages of approval.
I. KEY LESSONS LEARNED
38. Following is a summary of important findings and key lessons learned during this firstProject in this sector in India:
(a) The project appraisal should have taken a closer look at the institutional capacityrelative to project complexity and identified institutional and systemic weaknesses thatdelayed project implementation;
(b) The EFC memo for such a comprehensive national project with interdependentcomponents should discourage selectivity in component approval by the MOL'sInternal Finance during implementation. It should provide some flexibility duringimplementation and should also take into account normal price escalations andcurrency fluctuations, and should preferably be designated in SDRs. After approval of
12
the EFC memo, further approvals of the project components should not be soughtduring the implementation stage;
(c) The project could have achieved greater success with more decentralization andflexibility to States and ITIs in the selection of trades according to local needs, in theprocurement of equipment, and in curriculum development;
(d) In a national project with a high degree of complexity, participatory approaches duringproject preparation and implementation that involved States, ITIs and otherprofessional institutions could have improved project ownership and outcomes;
(e) Frequent changes in the senior implementation staff should be avoided. Technicalassistance, especially training, should be provided to project implementation staff inBank procurement whenever a first project is approved in a sector;
(f) To avoid delays in project implementation, land acquisition and architectural design ofbuildings should start before negotiations. Any works not coming to the bidding stagewithin six months of the agreed schedule should be cancelled along with the otherrelevant components; and
(g) A field-based supervision with close interaction with the client and projectbeneficiaries proved to be very effective and economical.
13
INDIA: VOCATIONAL TRAINING PROJECTTable 1: Summary of Assessments
I|A. Achievementofobjectives Substantial Partial | Negligible Not__ [applicable
Macroeconomic policies XSector policies X .Financial objectives _ ____X_ _Institutional development XPhv_sical o_biectives XPoverty reduction XGender concerns XOther social objectives . XEnvironmental objectives XPublic sector management XPrivate sector management XOther (Specify) _ ._ . . _ X
L -- - - - _~~~~Lkely Unlikely Uncertain B. Project sustainability L X Uneti
C. Bank performance 1i; satisfacto Satisfay DeficientIdentification XPreparation assistance XAppraisal __ __ __X
Spervision _ _ X
D. Borrower performance Highly Satisfactory Deficient__________________________ _ | satisfactory _ _ _ _
Preparation ___I_ I X I _I
Implementation X (the last four years) X (during the____________________________ _________. _________ ._. ____. __ --_ ----_--- _ first four years)
Covenant compliance X (the last four years) X (during theI ________________________ I ________________ I _____________I_____ first four years)
Operation (if applicable) L X ._x_1_ I
Highly Satisfactory Unsatisfactory Highly_ satisfacto_ unsatisfacto
E. Assessment of outcome X
14
INDIA: VOCATIONAL TRAINING PROJECTTable 2: Related Bank Loans/Credits
Credit Purpose/Achievement Year of StatusI I approval
Past Operations
Cr.342-IN To support university level agricultural education and 1973 Closed in 1982Agricultural reasearch at Assam Agricultural University, RajendraEducation Agricultural University in Bihar and Institute ofProject Agriculture Research in Delhi. PAPR noted that
noted that most of the objectives had been achieved.Cr.3093-IN To improve the quality of instruction in Departments 1989 Closed in 1996Electronics of Electronics in selected engineering colleges andIndustry polytechnics through modernization of equipment,Development staff development, learning resources developmentProject and industrial training of students. Project
objectives were achieved.Cr.2130-IN First To support the GOI's 10 year Investment program, 1990 Closed onTechnician aimed at capacity expansion, improvement of Sept. 30, 1998Education quality and efficiency of the technician educationProject system, in selected states. Project objectives were
_ fully achieved. _
Ongoing Operations
Cr. 2223-IN To support GOI's 10 year Technician Education 6/14/05 To close onSecond Investment program aimed at capacity expansion, June 30,1999Technician quality improvement and efficiency improvement ofEducation Project the technician education system in 10 project statesCr. 2699-IN To improve the quality and relevance of higher 1995 To close onAgricultural agricultural education and in-service training Dec.31,2000Human Resource in Andhra Pradesh, Haryana and Tamil Nadu.Develop. Project I I
Table 3: Project Timetable
Steps in Project Cycle Date Planned Estimate
Identification Sep-87 Sep-87
Preparation Jan-88 Feb-88
Appraisal Sep-88 Nov-88
Negotiations Jan-89 Apr-89
Board Presentation Feb-89 Jun-89
Signing Mar-89 Jun-89
Effectiveness May-89 8/8/89
Mid Term Review 12/31/94 6/1/93
Project Completion 12/31/96 12/31/98
Loan Closing 4/30/99 4/30/99
15
INDIA: VOCATIONAL TRAINING PROJECTTable 4: LoanlCredit Disbursements: Cumulative Estimated and Actual (US$ million)
IFY90 FY91 IFY92 FY93 IFY94 FY95 FY96 FY97 FY98 FY99
Appraisal Estimate 11.20 42.001 98.00 140.00 196.00 224.00 266.00 280.00 280.00 280.00
Revised Estimate 29.68 30.07 45.00 57.00 69.00 84.00 100.00 114.00 126.00 138.89
Actual 27.82 30.07 44.41 53.73 64.67 80.80 94.04 111.38 122.31 121.42Actual as % ofrevised estimate 93.73 100.00 98.69 94.26 93.72 96.19 94.04 97.70 97.07 87.42Date of final 5/24/99disbursement
Loan/Credit Disbursements
300.00
250.00 -
200.00 -
* AppraisalX Estimate
O 150.00-
* Revised Estimate
100.00 -
O Actual
50.00-
D3Actual as % ofrevised estimate
0.00 i_ _ _ _ _ _ _ _
FY FY FY FY FY FY FY FY FY FY90 91 92 93 94 95 96 97 98 99
Financial Year
16
INDIA: VOCATIONAL TRAINING PROJECTTable 5: Key Indicators for Project Implementation
Project sub-components and Target as in SAR Modified * Achievernentskey indicators (or in DPR of GOI) Target
1 Modemization and Replacement of Obsolete EquipmentNumber of ITIs modemized About 400 378 378
2 Establishing a equipment maintenance system:Maintenance Centres in ATIs 6 6 6Maintenance Workshops in States 19 19 19Maintenance Cells in ITls 100 100 93Specialized staff trained 552 450 574
3 Introduction of new basic training tradesAdditional new trade courses 376 courses in 205 376 courses in 205 370 courses inintroduced ITIs ITis 204 ITIs
4 Provision for AV equipment, AV aids, creation of MediaResource Centres and staff training in AV equipment
Number of ITis provided with AV equipment about 400 387 387Number of MRCs established 10 10 10Number of staff trained 3200 ( 6 weeks) 6000(2-3 weeks) 6222(for 2-:3 weeks)
5 Upgrading of instructors (State Sector)Number of staff trained 1750 (12 months) 3500(6-12 months) 3784(6-12 months)
6 Expansion of pilot post ITI training for self employmentNumber of ITIs offering training 95 41 36Number of persons trained 9000 4000 1175
7 Creation of new BTCs & RICsNumber of BTCs established 24 16 18Number of RICs established 44 44 44Number of persons trained in BTCs & RiCs 98410 96450 95474
8 Creation of new WITIs/WingsNumber of WITIstwings created 100 100 100Number of women trained (cumulative) 16000 16000 24300
9 Introducing new trades in exisUng WITIsNumber of WiTis/Number of courses 72 ITls,18 trades 641Tls, 18 trades 64 ITIs, 18 tradesintroduced (120 courses) (120 courses) (117 courses)Number of additional training places createdin existing and new WlTlslWings 12000 12000 11908
10 Establishing new RVTls for womenNumber of RVTIs established 4 4 (Provision of staff 4 (running at
& equipment only) temporary locations)Number of training places created 784 400 484i
11 Introduction of new trades at NVTI/RVTlsNumber of advanced level trades 17 Advanced at basic & 4 advanc 17 at basic & 5 advancedNumber of training places created 936 780 575
12 Introducing new advanced skill training in AVT centersNumber of AVTS Centres 34 33 6 ATIs & 30 ITIsTrainees output during the projecttyear 21576 21500 34014
13 Introduction of high-tech training courses Establishing High-Tech Center' preparing to introduceNumber of Locations 1 High-Tech Center 10 ITls & 9 ATIs Hi-Tech training programs
& 19 ATIs/lITIs (TA/Equipment only) at 19 ITIs/ATIs14 Establish linkages with industry
Assign Industrial Liaison Officers in ITIs 400 400 Principals/ ApprenticeshipOfficers act as Liaison Officers
Setting up Industry Advisory Boards in ITIs 400 400 24()15 Establishing Project Management Units
SPIUs 18 18 18CPIU I 1 1Training of staff in management 42 42 79No. of staff in Women's Cell in DGET 50 staff 12 key staff 12 key staff
16 Introduction of computerised MIS for 5 core software modulesmonitoring and evaluation prepared by NIC
Number of States with MIS for VTS 18 18 1817 Filling up instructor & other staff posts
Number of posts to be filled 4500 4200 3756Targets modified on restructuring in 1996
17
INDIA: VOCATIONAL TRAINING PROJECTTable 6: Key Indicators for Project Operations
A. Completion of unfinished componentsAi. State Sector ComponentsComponents Actions proposed and time frame for completion
Civil Works Bihar proposes to complete remaining 7 civil works in 1999Staff Training Andhra Pradesh (14), Bihar (82), Kerala (11), Meghalaya (7),
Nagaland (2), Himachal Pradesh (9) and Pondicherry (1) proposeto complete the targets (deficiencies of number of staff to betrained are given in brackets) by 1999
AVAids Training Assam (31), Bihar (9), J&K (13), Kerala (82), Mizoram (4), TamilNadu (27) and West Bengal (28) propose to complete the trainingin 1999
Filling up key staff posts Andhra Pradesh (19), Assam (20), Bihar (83), Gujarat (2)Haryana (61), Karnataka (25), Kerala (1), Orissa (19), Punjab (10)Tamil Nadu (1), Uttar Pradesh (40), West Bengal (18) havehave initiated steps to fill up remaining (x) vancancies
Establishment of J&K (1 cell), Uttar Pradesh (2 cells) and West Bengal (4 cells) areEquipment Maintenance taking action to set up the remaining (x) cells in 1999.SystemIntroduction of new trades 3 trades in Assam and 3 in West Bengal to be started in 1999Expansion of AVTS AVTS in 2 ITIs in Haryana and 1 ITI in Uttar Pradesh will be started
in June 1999New Trades in existing Remaining 2 trades in Assam and 1 trade in West Bengal will beWomen ITls introduced by August 1999A2. Central Sector ComponentsComponents/Schemes Actions proposed and time frame for completionTrade Testing and Will be taken up for implementation during IX Plan and beyond, byCertification the Government of IndiaHi-Tech Training Will be continued with Central and State funds. External
assistance is also being tied up for setting up Apex Institute.New RVTls Construction of RVTI buildings at 2 locations has been approved,
activities will continue during IX Plan
B. Continuation of OperationsB1. Funding ProvisionsSchemes Financial allocations made to continue operationsCentral Sector A plan outlay of Rs.1 140.5 million for all 14 Central Schemes and
Rs.729.5 million for 7 Centrally sponsored schemes, from GOIapproved under IX Plan.
State Sector States have proposed IX Plan allocations for continuingoperations: Andhra Pradesh Rs.165m, Assam Rs.186.8m, BiharRs.121.3m, Delhi Rs.270m, Goa Rs.142.2m, Haryana Rs.229.9m,J&K Rs.320.9m,Karnataka Rs.370.2m, Kerala 214.0m, MadhyaPradesh Rs.841.1m, Mizoram Rs.24.2m, Punjab Rs.602.7m,Rajasthan Rs.900m, Tamil Nadu Rs.138.2m, U.P. Rs.820.0m,West Bengal Rs.560m
B2. New InitiativesActions proposed StatusSetting up Skill Dialogue with employers' groups is in progress, by a DGETDevelopment Fund for constituted Tripartite CommitteeCTS and ATSPartnership with industry Some states have initiated steps to involve industry more in ITI
activities and strengthen linkages with industryNew Policy framework for Draft Policy paper developed by an expert committee to ensureNVTs long term, sustainable development of NVTs in under circulation to
_________________ states for their comments
18
C. Key Indicators for Prolect OperationsKey Area Activity Proposed Performance Indicators Targetted Monitoring Agency &
Value (Method Proposed)Cl. Improving Upgrade training and improve Student Admission Rate 100% DGET, State DirectorateEfficiency and internal efficiency Student Drop Out Rate <10% (SD) Cross SectionalEffectiveness of Student Pass Rate >80% Analysis (CSA) and TimeCTS OutputUCapacity Rate >75% Series Analysis (TSA)
Cost/student/year - would be employed.Industry assessment of training - Periodic sample surveyseffectiveness
Maintain and upgrade physical Maintenance level of buildings/utilities DGET, SDinfrastructure Equipment in working condition >95% Sample surveys
Effectiveness & efficiency of maintenance CSArTSAcells
Staff Training % of instructors deputed for training/year >10% SDIDGET (MIS)% of teachers deputed for industry >10% - Do -orientation% teachers receiving awards etc.Expenditure on training as a % of salaryexpenditurePreparation of annual Staff DevelopmentPlans
Use of modem instructional % teachers trained in the use of AV aids >80% DGET/SD (MIS)aids and resources % teachers trained in pedagogy >75% (Sample surveys)
Evidence on the use of instructional aidsin teaching/leamingAvailability of AV equipment in workingconditionNo. of OHP/number of training units in ITIAvailability of CIMI materialPerformance of MRCs in training and MIS, studiesproduction
Availability of raw Expenditure on raw material per trainee As per DGET/SD (MIS)materials/consumables per month NCVT norms
Actual availability of raw materials for (Surveys)training
Enhance relevance and % of graduates getting employed within 6 DGET/SD (MIS)extemal efficiency months, in each trade
% of graduates becoming self-employed (Tracer studies, samplesurveys)
Comparison of employment rates ofgraduates from new trades, andconventional tradesLevel of involvement of industry in coursedevelopment, testing etc.
C2. Strengthening Provide facilities for practical % of apprenticeship seats filled >90% DGET/SDApprenticeship training for trades which do not % of apprentices passing tests >80%Training have them. % of apprentices getting employed within CSArTSA
6 months of passing tests Tracer studies & aurveysIndustry rating of quality of practicaltraining
Provide facilities for related Industry training of quality of instruction Surveystheory instruction % ublization of BTC seats
_ % ublization of RIC seats MIS
19
Key Area Activity Proposed Performance Indicators Targetted Monitoring Agency &__________ ________________ _________________________ Value 'M ethod oro Dosed)
C3. Advanced Skills Establish AVTS and provide % of Govt. ITIs having AVTSTraining relevant training Number of manweeks of Advanced Skill >90% DGET/SD (MIS)
Training conducted/Designed capacityEstablish High Tech Training % of manweeks of training provided to >50% Sample surveysCentres industry sponsored trainees
Evidence of employer partidpation inrunning AVTSRevenue generated from courses against >25%recurring expenses for AVTS
C4. Increased New ITis for Women % increase of women trainees in CTS, DGET, Women's Cell, SDAccess to Skill ATS, AVTS, RVTI Trade-wise annuallyDevelopment ofWomen New RVTIs and strengthening Capacity utilization, Drop-out rate, pass (MIS, Tracer studies)
existing Institutes out rate, employment rate, self Sample surveysemployment rate for trades offered.Equipment availability for trainingExistence of special schemes, facilitiesto promote women's paricipation
C5. Improved Establish Special Cells (PMUs) Number of PMUs in full operational state, DGET, SDPlanning & in each major state (MIS)Management Establish computerised MIS Developing an effective Monitoring & Sample studiesCapacity of NVTS Control system and its useat Central and Strengthen research capacity Adherence to prescribed standards inState levels ITIs, WiTIs, AVTS, ATS, RVTI, NVTI, etc.
Strengthen Testing & Operational level of MISCertificabon process % utilization of CSTARI training and
research capacityStrengthen Industry Institute Number of research studiesinteraction conductedlyear
Quality of research studies conducted Peer review of studies byDGET appointed groups
Effectiveness and efficiency of testing Review Committee of DGETand certification process installedNumber of ITIs and other institutions MIShaving IMCs with industry participationEvidence of involvement of industry in Surveyscourse development testing, training andcurricular decisionsNumber of labor market studies MISconducted and utilization of information in Review Committee of DGETcurricular decisions.
INDIA: VOCATIONAL TRAINING PROJECTTable 7: Studies Included in the Project
Study Purpose as defined at appraisallredefined Status Impact of Study
1 An evaluation study on a) To build and enhance in-house research All studies (1-4) have The results of all the studies helped inself-employment scheme. capacity on vocational training with DGET been completed and the formulation of new policy paper
institutions (CSTARI, NVTI and RVTWs) their outcomes shared on Vocational Training Policy2 A Tracer study of ITI certificate with the Bank in 1996 framework under development.
holders in the labor market. b) To gain further knowledge and insight & 1997.which could contribute to the overall
3 A study of quality and efficiency performance of the vocational training These studies wereof instruction in ITIs. system. carried out using Discussion on a Vocational Training
in-house capacity and Policy Framework draft prepared by4 A review of accreditation external consultants a tripartite committee, is underway
standards and their application with Bank approval. within the MOL. It will be taken upwith particular reference to for Government approval andmanaging the growth and quality adoption.of government and private ITIs.
5 Evaluation of quality and To identify major weaknesses of the Studies 5-12 wereefficiency of NVTs. system affecting internal and external conducted using an
efficiencies and to suggest reforms for external consultant onupgradation. suggestions of the
Bank during mid-termreview. Outcomeshave been shared withthe Bank.
6 A review of the Advanced To gain information for quality and efficiency Study completed inVocational Training System improvement of AVTS. January 1996(AVTS)
7 Critical Review of the testing and To take steps for improving the testing and Study completed incertification scheme for certification process. January 1996designing and developing anefficient, appropriate andsustainable system.
Study Purpose as defined at appraisallredefined Status Impact of Study8 Review and analysis of To improve the quality of apprenticeship Study completed in As above
Apprenticeship Training System training. January 1996
9 Systematic identification of staff To bring about qualitative changes in the Study completed intraining needs and design of an Staff Development programs. January 1996upgraded Staff DevelopmentSystem.
10 Upgrading women's training To identify and analyse employment Study completed inprogram potential for women's programs. January 1996
11 Staff Development and Training To review staff development programs and Study completed infor Women's Program validate them. January 1996
12 Training needs analysis, course To ensure relevance curricula development Study completed inand curricula development and January 1996specification of equipment
13 Trainers Training Demand Survey To develop infrastructure for existing State In addition to S.Nos. Studies have been discussed withand Central Institutions for implementing 13 & 14, ten more concerned Institution heads andHi-Tech Training Scheme studies were approved for adoption during the
completed by the operation phase for implementing theconsultants (GTZ) out scheme.of project funds.
14 Development of a proposal forestablishment of Apex Hi-TechTraining Institute
Note: Another 5 studies/proposals were carried out by GTZ (outside project funds) to formulate implementation plan for development of Hi-tech Training Schemes
to be implemented in identified State and Central Institutes, and for setting up an Apex Hi-Tech Training Institute at Bangalore.
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lndia:Vocational Training ProjectTable 8A: Project Costs
ITEM Appraisal estimate S$M) Actual/Latest estimate (US$MLLocal Costs IForeign Cost Total I Local Costs IForeign CostQ Total
I) Investment Cost
1.Civil works & Furniture 42.900 7.600 50.500 19.4701 0.0001 19.4702. Equipment & Books 180.400 69.600 250.000 101.500 1.600 103.1003.Local/Overseas Training 13.800 4.100 17.900 2.020 0.000 2.0204.Specialist Services 1.800 2.000 3.800 0.260 4.300 4.560
TOTAL of I I 238.900[ 83.3001 322.2001 123.2501 5.9001 129.150
II) Recurrent Costs
5.Honoraria & Travel 9.900 0.000 9.900 1.760 0.000 1.7606.1rncremental Salaries 63.600 0.00C 63.600 22.820 0.000 22.8207.Consumable Materials 11.600 0.600 12.200 1.780 0.000 1.7808.1ncremental Maintenance 17.200 0.900 18.100 0.000 0.000 0.0009.Miscellaneous 3.600 0.200 3.800 7.990 0.000 7.990
TOTAL of _ 105.900 1.700 107.6001 34.350 0.000 34.350
TOTAL OF I & 11 | 344.8001 85.0001 429.8001 157.6001 5.9001 163.500
Note:1) US$1=Rs.16 (at appraisal); US$1 =Rs.32.67 (Average over Project Period)2) There are foreign cost component (indirect cost) in equipment, books and consumables.
However, this is difficult to estimate hence not been indicated in actual cost.
Table 8B: Project Financing
Source Appraisal estimate ( S$M) Actual/latest estimate (US$M)Local cost Foreign costs Total Local costs Foreign costs Total
IBRD/IDA 195.000 85.000 280.000 116.950 4.470 121.420Cofinancing institutions 0.000 0.000 0.000 0.000 0.000 0.000Other extemal sources 0.000 0.000 0.000 0.000 0.000 0.000Domestic contribution 149.800 0.000 149.800 40.650 1.430 42.080TOTAL 344.800 85.000 429.800 157.600 5.900 7 63.500
Table 9: Economic Costs and Benefits
Not Analysed
INDIA: VOCATIONAL TRAINING PROJECTTable 10: Status of Legal Covenants
Agreement Section Covenant Present Original Revised Description Commentstype Status fulfilment fulfilment of
date date CovenantCREDIT Article IV, 01 C Maintain records and accounts FulfilledCredit Section 4.01 (a) which reflect Project operations,Number: resources and expenditures.
IDA-20080 Article IV, 01 C Maintain records for the Special FulfilledSection 4.01 (b)(i) Account for each fiscal year to be
audited annually by an independentauditor.
Article IV, Section 01 CD Provide a certified copy of the audit Audit certificates for4.01 (b)(ii) to IDA no later than nine months some project entities
after the end of each fiscal year delaved.
Article IV, Section 01 C Provide other information on records, Fulfilled4.01 (b)(iii) accounts and audits as IDA may
._________ _________ ________ _____ request.Article IV, Section 01 C For all expenditures from the Fulfilled4.01 (c)(i) Credit/Loan which are made by
SOE, the Borrower shall maintainrecords and accounts of suchexpenditures in accordance with
_ Section 4.01 (a).Article IV, Section 01 C For all expenditures from the Fulfilled4.01(c)(ii) Credit/Loan which are made by
SOE, the Borrower shall retain allrecords of expenditures until at leastone year after the FY audit has beenreceived by IDA.
Article IV, Section 01 C For all expenditures from the Fulfilled4.01(c)(iii) CreditVLoan which are made by
SOE, the Borrower shall allow IDArepresentatives to examine suchrecords.
Article IV, Section 01 C The Borrower shall ensure that Fulfilled4.01(c)(iv) records and accounts referred to in
para (b) are included in the annualaudit, which must also contain anopinion of the auditors as to the
I____________reliability of these records.
Schedule 1, Para 3 03 C No withdrawals will be made from Fulfilledany category unless the State orUnion Territory has satisfactorilyprovided a Letter of Undertaking toIDA.
Agreement Section Covenant Present Original Revised Description Commentstype Status fulfilment fulfilment of
date date CovenantSchedule 4, Part Al 05 C Maintain a Central Project Fulfilled
Implementation Unit (CPIU) withinDGET to coordinate, supervise and
.________________ ________ _Imonitor project implementation.Schedule 4, Part A2 04 C Ensure adequate funding for Fulfilled
equipment maintenance duringproiect duration.
Schedule 4, Part A3 05 C Submit proposed implementation Fulfilledplan for the following project year toinclude, without limitation, plans forstaffing and training, landacquisition, and financialprocurement and construction plans.
Schedule 4, Part A4(i) 10 CD 12/31/94 8/1195 Undertake and provide the following Report received in Julystudies: an evaluation of the self 1995employment scheme.
Schedule 4, Part A4(ii) 10 cc 9130195 5/20196 Tracer study of ITI certificate holders Report received in Mayin the labour market. 1996. Another study
completed in December1997.
Schedule 4, Part A4(iii) 10 CD 12/31/94 7/31/96 Sample study of ITI instruction. Report received inDecember 1995 but notaccepted by IDA.Another report submittedin July 1996.
Schedule 4, Part A4(iv) 10 CD 7/31/95 7/31/96 Application of accreditation Final report received instandards in selected ITIs. July 1996.
Schedule 4, Part A5 09 C Provide a mid-term review of the Fulfilledprogress of the Project to identifyimplementation problems andactions required to strengthensubsequent project execution.
Schedule 4, Part A6 10 C Continue a policy of establishing Fulfilledlocal level advisory committee andthe appointment of industrial liaisonofficers at each ITI assisted underthe Project to ensure adequatelinkages between industry and theproject ITIs.
25
INDIA: VOCATIONAL TRAINING PROJECTTable II: Compliance with Operational Manual Statements
StatementNumber and CommentsTitleOP/10.02 Para 9 of OP 10.02 states that if within 4 months after the due date the BankFinancial does not receive acceptable audited financial statements, the Bank normallyManagement discontinues the use of the SOE procedure.
For non-receipt of acceptable audited SA financial statements from some States,the Bank suspended disbursements using the SOE procedure on three occasions:Date of suspension Fiscal year for which Date of reinstatement onof SOE procedure audited statements were receipt of audited statements
not receivedMay 6, 1996 1994-95 June 17, 1996June 5, 1997 1995-96 July 28, 1997May 12, 1998 1996-97 June 30, 1998
OP/13.40 Para 2 of OP 13.40 states that the Bank may decide to suspend disbursements asSuspension of of a specific date unless the borrower takes certain remedial action, by a specificDisbursements date, for reasons unrelated to payment.
Pursuant to Section 3.01 of DCA, read with Section 6.02 of the general conditionsapplicable to DCA, the right to make withdrawals was suspended, effective July 6,1994, due to unsatisfactory progress in key project components.On achieving the specified benchmarks for progress in these components (specifiedby the Bank), the suspension was lifted on January 13,1995.
India: Vocational Training ProjectTable 12: Bank Resource Staff Inputs
Stage of Project Cycle Planned Revised ActualWeeks US $K Weeks US $K Weeks US $K
Through Appraisal NA NA NA NA 105 240.00
Appraisal through Board NA NA NA NA 15 35.00Approval
Board approval through NA NA NA NA 12 28.00effectiveness
Supervision 25 550.00 302 675.00 283 643.40
Completion 17 43.50 19.1 44.00 15 30.00
TOTAL 430 976.40
Note: Complete information not found in available records.
26
INDIA: VOCATIONAL TRAINING PROJECTTable 13: Bank Resources: Missions
Stage of Month/ Number Days Specialised Performance rating Types of problemsProject cycle year of in skills Implemental Development
Persons field represented status ImpactThrough 9/87, 2/88, 7 60 GEd, Arch, Ec,Appraisal 5/88, 8/88 TE, VITS, Mec,
lPrEAppraisal 3/89 5 GEd, Con,through Arch, DS, TEBoard ApprovalSupervision 9/89 3 7 TE, IS, IRS 1 1
1/90 3 7 TE, IS, Con 1 1 Staff appointments andcreation of infrastructure forimplementation
9/90 3 11 TE, IS, TS 1 1 ---- do--2/91 3 16 TE, IS, TS 2 2 CPIU Staffing4/92 3 20 TE, IS, TS 2 2 Women's cell in CPIU
undersrtaffed1/93 2 17 VTS, IS 2 2 Procurement delay
Mid-Term 5/93 3 18 VTS, IS, TE 2 3 Delay in Staff appointment.Review Delay in use of TA
9/93 3 19 VTS, IS, TE 3 3 Delay in filling of staff posts6/94 3 12 as above U U Disbursement suspended
due to unsatisfactory_________ _ _I _ progress
Supervision 2/95 3 20 TE, MTE, Arch U U Slow progress in CentralI_______ components
10/95 3 26 TE, MTE, Arch U U Implementation progress notsatisfactory
5/96 3 32 TE, MTE, Arch U U as above11/96 3 21 M, MTE, ES S S, S, U Slow implementation of
Central components5/97 3 24 TE, MTE, Arch S S, S, U as above1198 3 17 ES, Arch, MTE _ __ =____
6/98 3 __ _ MTE, ES, TE S S, S, U Procurement delay11198 4 13 MTE, ES, TE S S, S,U -
Completion 1/99 3 15 MTE, ES, TE I I
Abbreviations: GEd - General Educator, Arch - Architect, Ec - Economist
TE - Technical Educator, VTS - Vocational Training SpecialistMEc - Manpower Economist, PrE - Procurement EngineerTTS - Technical Training Specialist, Con - ConsultantDS - Disbursement Specialist, IS - Implementation Specialist, IRS - Industry Relations SpecialistTS - Training Specialist, MTE - Management & Technical EducatorES - Education Specialist, M - Management
The World Bank New Delhi Officc Phone: (11)4617241/ 4619491
INTERNAnONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 70 Lodi Estate Cable Address: INTBAFRADINTERNATIONAL DEVELOPMENT ASSOCIATION New Delhi 3, India Mailing Address: P.O. Box 416
Telex: 3161493 IBRD INFacsimile: (I 1) 4619393
February 12, 1999
Mr. L.D.MishraSecretary to GovenmentMinistry of LaborShram Skakti BhavanNew Delhi I 10(QI
Dear Mr. Mishra,
INDL4: Vocational Training Project (Cr.2008-IN)
I would like to express my thanks for the assistance and support provided by your colleaguesand State officials to the IDA ICR Mission during January 28 to February 11, 1999. Attached is acopy of the mission's aide-memoire which incorporates the discussions during the wrap-up meetingheld on February 1 t, 1999. The mission's has informed me that it is still going through the detailedmaterial provided and the final findings could undergo some minor changes.
We propose to send our draft ICR for your comments by April 15, 1999 and would expectyour own evaluation report of the project by the end of April 1999.
Regards,
Sincerely,
Edwin R. LrimCountry Director, India
Attachment
cc: Mr. V. Govindaraj an, Additional Secretary, Department of Economic Affairs, Ministry ofFinance, North Block, New Delhi 110 001
Headquarters: Washington, D.C., U.S.A
ANNEX A
INDIA
VOCATIONAL TRAINING PROJECT(Credit 2008-IN)
IMPLEMENTATION COMEPLETION REPORT MISSION(January 28-February 11, 1999)
AIDE-MEMOIRE
INTRODUCTION
1. An IDA mission comprising Messrs. S.K. Shrivastava (Task team leader), Y. Saran(Education specialist, Consultant), and G.S. Chandran (Technical educator, Consultant)participated in a mission to prepare the Implementation Completion Report (ICR) of theVocational Training Project. The mission wishes to thank Messrs. A. Nimbalkar, AdditionalSecretary, MOL; S. Krishnan, DGET; G. S. Sethi, Director, Central Project ImplementationUnit (CPIU) and his colleagues for their participation and valuable inputs in discussions with theproject States throughout the mission.
2. Shortly after assembling in New Delhi, the mission discussed the scope of work with theDGET and the CPIU officials and agreed on a schedule of activities. These activities includedvisits to Pune and Bangalore for detailed discussions at regional meetings with the employers,teachers and the students and to get a better picture of project implementation through field visitsto some institutions. The findings of this mission are subject to further refinement andendorsement by the Bank Management. These are based on the comprehensive progress reportprepared by the CPIU, reports prepared by the State Project Implementation Units (SPIUs),materials in the project files, mission's observations from the field trips, discussions withteachers, students and employers, and discussions with various institutions/ project unitsincluding CPIU, SPIUs, and senior officials of the MOL. The mission acknowledges with deepgratitude the assistance and courtesies extended to it by numerous central and State agencieswith which it met. Special thanks are due to the officials of Delhi, Karnataka, and Maharashtrafor the excellent arrangements for the regional meetings and the warm hospitality extended to themission.
PROJECT BACKGROUND
3. The project was the first IBRD/IDA assisted project in vocational training in India. Itwas intended to support the Ministry of Labour's (MOL) long-term program to modernize andrestructure the National Vocational Training system (NVTS). Main weaknesses identified byDGET were: (a) need to modernize/upgrade equipment, outdated curricula, shortage and limitedskills of instructors and instructional resources to satisfy changing needs of the growingindustrial sector; (b) weaknesses in NVTS to cope with planning, management, monitoring andtrade testing to ensure higher efficiency, quality and standardization; (c) poor participation ofwomen in industrial labor force; (d) inadequate opportunities for employment in the organized
2
sector to workers from poor socio-economic background; and (e) lack of training which supportsself employment of graduates.
4. To address these issues the MOL sought Bank financing through the Department ofEconomic Affairs (DEA) of Government of India. A project proposal prepared by DGET withassistance from ILO and UNDP in 1983 was substantially modified and submitted to Bank. Theproject was appraised in November 1988, approved by the Board in April, 1989, and becameeffective on August 8, 1989.
Project costs:
5. The total project cost at appraisal was estimated as US$ 429.8 m (Rs.6877.9m) of whichBank was to finance SDR 189.2m (about US$250 m) as IDA Credit and US$30.0 m as anIBRD loan, GOI was to finance the remaining US$149.8 m equivalent. The significant Rupeedevaluation increased the proceeds from the credit which were partially offset by the cancellationof some US$69.0 m in FY 92, which included the entire IBRD loan of US$30.0 m. In FY 93another cancellation of SDR 35.7 m was made. After project restructuring further cancellationsof SDR 13.0 m in FY 97 and SDR 9.8 m in FY 98 were made bringing the available credit downto SDR 101.3 m. The mission estimates a further saving of about SDR 10 m at project closing.The project would thus close utilising only about 45% of the original credit/loan amount.
6. The credit was extended two times by a total of two years. The first extension to 31 Dec1997 was made consequent to continued concerns expressed by Review missions about theachievement of all developmental objectives by the original closing date -- 31 Dec 1996. TheBorrower had agreed to complete the components during the extended period through revisedaction plans and close monitoring. In December 1997 IDA agreed to extend the closing date byanother year for three critical components- Modernisation of equipment, Hi-Tech Training andMIS. For the remaining 16 components the project closed on 31 Dec 1997.
Project Objectives
7. The primary objectives of the project were to: (a) improve the quality and efficiency ofbasic craftsmen and apprenticeship training (b) expand and diversify the advanced trainingprograms; and (c) strengthen the NVTS planning and managerial capacity. The participation ofwomen was to be increased in all these programs.
8. The project had three major components:
(a) Modernising craftsman and apprenticeship training through re-equipping about 400selected Industrial Training Institutes (ITIs) and developing related training systems,extending trade coverage of the National Apprenticeship Training Scheme at 24Basic Training Centres and 44 Related Training Centres and increasing women'saccess to training in modern trades by constructing about 100 new ITIs for women(WITIs) and introducing about 18 new trades in about 72 existing WITIs/ Women'sWings in ITIs.
(b) Expanding, Advanced Training Programs by introducing about 17 new trades at theadvanced skill level in existing Regional Vocational Training Institutes (RVTIs) andat the National Vocational Training Institute (NVTI), establishing about 34 new
3
Advanced Vocational Training System Centres and establishing a new HighTechnology Training Centre for electronics, computers and robotics; and
(c) Improving NVTS management and planning at DGET and corresponding StateDirectorates of Training through strengthening the monitoring and evaluationsystem, improvement of the testing and certification processes, reorientation ofmanagement/supervisory training, and strengthening of research in vocationaltraining.
9. Project objectives were clear, highly relevant and important to MOE's long term programto modernise and restructure NVTS and rightly aimed at revamping the system. Objective-wisethe financial allocations, as stated in the SAR were: Modernisation of training - Rs.3726 million(75.9%); Advanced Training Programs-Rs.825.7 million (16.8%); and NVTS Planning andManagement -Rs.355.8 million (7.3%).
Project Restructuring
10. The CPIU and the DGET were subjected to a number of operational constraintshindering its capacity to implement a project of such magnitude and complexity. Thesedeficiencies persisted in spite of an action plan agreed during mid-term review. This led to therestructuring of the project and resetting of targets in December 1996. The restructuring of theproject made the following changes in its scope:
(a) Expansion of the post- ITI training for self employment to cover only 41 ITIs againstan earlier target of about 100 ITIs.
(b) Creation of 18 new BTCs and 44 RlCs in trades and theoretical areas, against anoriginal target of 24 new BTCs and 44 RICs.
(c) Introduction of 18 new trades in non-traditional areas in 64 WITIs and Wingsagainst the earlier target of about 72 WITIs/ Wings
(d) Provision of staff and equipment for 4 new RVTls for women in place ofconstruction, staffing and equipment for the same.
(e) Introduction of about 10 new trades at the basic level and 4 at the advanced levelskill training in RVTIs and NVTI in place of 17 new trades at the advanced level
(f) Provision of only technical assistance for establishment of an Apex Hi-TechTraining Centre for Electronics, Computer and Robotics (and cancellation of theprovision of works and equipment for this Centre).
Through another amendment in December 1997, provision of equipment for Hi-Tech training at19 ITIs and Advanced Training Institutes (including the NVTI and one RVTI) was added.
PROJECT PROGRESS SUMMARY
11. The Project Review Aide-Memoirs report very slow progress during the first four yearsof implementation. However, the implementation improved gradually in later years and resulted
4
in accelerated progress during the last 2-3 years. The project components were implementedthrough 20 central or centrally sponsored (State sector) schemes of GO01. Their status issummarized below:
OBJECTIVE 1: Quality Improvement of Craftsman and Apprenticeship Programs
12. The status of achievement of Quality Improvement Objective according to theachievement of physical targets has been satisfactory. A sample tracer study coordinated byCSTARI and impact studies conducted on a limited scale by some States provide evidence ofquality improvement. However, due to delays in equipment procurement and installation, andteacher recruitment and training, the full impact on quality of training is yet to be assessed. Thestatus is summarized below:
(a) **Modernization of Equipment in existing ITIs: Against the revised allocation ofRS 2873 million (appraisal estimate - Rs. 1590 million) for Equipment, aboutRs.2500 million were utilized to replace some obsolete equipment in 378 ITIsestablished before 1969. Some modem equipment are also added in selected ITIs.While the States of Maharashtra, Rajasthan, MP and Orissa exceeded the targets,some States (AP, Bihar, UP) could not take advantage of additional allocations.
(b) Introduction of New Trades: The targets for expanding the training capacity havebeen met with the introduction of 370 (of 376) new trades in 204 ITIs. With theexception of Assam and West Bengal all States have met the targets and to date some28,000 students have completed their training in the new trades.
(c) AV Aids and Media Resource Centers (MRCs): 387 ITIs have been provided withAV equipment. After considerable delays, 10 MRCs were established -- 7 at ATIs,one each at a CTI, an NVTI, and an RVTI. About 80% equipment has been procuredand is in use. These MRCs were to train 3200 ITI instructors in upgradinginstructional capabilities of trainers in the use and development of instructionalsoftware through courses of 6 weeks duration. Because of the delays, the Statesutilized services of MRCs at ATIs and State institutions and trained some 6200 staffthrough courses of only 2 weeks duration with the Bank approval. Most Statesexceeded the revised targets. The major shortfalls were in Kerala (22%) and Assarn(27%), due to restrictions on travel outside the State. During discussions, theinstructors as well as the students reported use of AV equipment on a limited scalefor enhancing the quality of instructions.
(d) Equipment Maintenance System: To develop equipment maintenance capability inthe NVTS, 6 Regional Service Centers, 19 Equipment maintenance Workshops indifferent States and 93 Cells (of 100 planned) have been established. Four Cells inWest Bengal would be operational soon and J & K (1 Cell) and UP (2 of 12 Cells)did not establish 3 Cells. About 85 % of the maintenance staff has been trained. Astudy of 35 ITIs in 7 States commissioned by the DGET concluded that percentageof machines in working condition has increased from a pre-project status of 50% to92% at present.
lComponents marked ** closed on December 31, 1998 while others closed on December 31, 1997.
5
(e) Post-ITI Courses for self-employment: Facing operational difficulties and lack ofresponse from ITI trainees, the scope of this pilot scheme was scaled back after astudy, in 1995, to 41 centers from the appraisal target of 100. Finally, 36 ITIs in 11States have started these programs and trained some 1200 students during the life ofthe project. Other than recording reasons for lack of response from ITI graduates, noserious efforts were made to improve program design and delivery, provide qualifiedinstructors or appropriate infrastructure.
(f) Basic Training (BTC) and Related Instruction Centers (RI): To improve and expandApprenticeship Training Programs two components had varying degree of successwith considerable delays: (i) as per the revised target 18 BTCs (17 in States and oneat RDAT Kanpur) have been established, which have provided basic training tosome 2650 apprentices in trades not adequately covered by ITIs. Another BTC willstart in Bihar by end- 1999; (ii) all the planned 44 RiCs (38 in 18 States and 6 inRegional Directorates of Apprenticeship Training ) have been established andtrained some 70,000 apprentices. States have reported 5-23% increase in pass ratesin apprenticeship programs.
(g) Women's Training: To improve access to women for training in modem trades fourschemes have been implemented. The two State schemes (i and ii below) haveachieved and some even exceeded the target while Central schemes have met withmarginal success: (i) 96 (of 100) New Women ITIs/Wings (WITIs) have beenestablished (estimated cost RS 615 million) and are functional with some 24300 (against a target of 16000) women having completed their training during the project.The remaining 4 in Bihar are expected to be fully operational in 1999 aftercompletion of civil works and appointment of staff; (ii) 117 (of 120) demand-drivencourses in 19 new trades covering 64 existing WITIs have been introduced withreported output of 6,500 graduate; (iii) the target of establishing 4 new RVTIscould not be achieved due to delays in site acquisition. These centers are, however,functioning in temporary location with limited facilities and staff shortages andconducting the courses as per revised target; and (iv) the scheme of strengtheningthe existing RVTIs and NVTI, in spite of less than planned support due to delaysresulted in producing some 1600 graduates against the target of 1304.
OBJECTIYE 2: Expanding Advanced Vocational Training Program
13. Overall, the objective of expanding advanced skill training for instructors and industryhas been partially achieved as summarized below:
(a) Expansion and Improvement of Advanced Vocational Training Programs: In theCentral sector, training in 6 ATIs has been strengthened and expanded in new areas.Advanced training facilities exist in 30 (of 33) ITIs; the remaining 3 in UP andHaryana will start operations in 1999. Total outputs reached 33,000 against therevised target of 17,000. Training outputs from MP and Orissa are low whileMaharashtra and Gujarat did very well. These institutions still suffer frominadequate staffing and equipment and will take some time and further investment toreach the planned level of quality programs at appraisal.
6
(b) **Apex Hi-Tech Center and Units: Although a TA contract was signed with GTZin July 1995, some 200 staff months of training (including 24 staff months inGermany) was provided to staff, curricula were developed after careful needassessment and equipment lists was prepared, the Apex Hi-Tech Training Center (akey resource center) could not be established as planned. This is a major shortfall inthe achievement of project objectives due to delays in decision making. The ApexCenter is now functioning with limited capacity in a temporary location and oneprogram for industry has been conducted recently. Some training has also beenconducted for staff of 19 institutes ( 10 ITIs, 7 ATIs, NVTI and RVTI) which willstart offering Hi-Tech training programs from 1999/2000. In these institutes,renovations to buildings have been completed and equipment installation is inprogress.
OBJECTIVE 3: Improvine NVTS Plannin2 Management and SuDervision
14. The objective of improving planning and management were marginally achieved. Thestatus is summarized below:
(a) Improving NVTS Planning Management and Supervision: The ProjectImplementation Units at the DGET (CPIU) and 18 States (SPIUs) were establishedafter considerable delays (about 2 years) and were adequately staffed but sufferedfrom frequent staff changes at senior level. Staff of these Units were trained at the IIMCalcutta. A major achievement of the project is closer interaction between industryand ITIs. Major developments include formulation of Advisory committees, MOUsbetween CII and State Directorates, partnerships between some ITIs and companies,and work started in the northern States for reaching an understanding on jointmanagement of ITIs by Government and the industry. The outcomes, supported byDGET and the MOL, are positive and rapidly expanding require continued support.With appropriate policy changes, there could be a major break through if the currenttrend continues.
(b) **Establishment of a Monitoring and Evaluation System: Efforts were made by someStates (Maharashtra, Gujarat, Punjab and Karnataka) to develop and use MIlS moduleswith their own efforts. According to Internal Finance (IF) of MOL this componentrequired revision of the EFC even though it was included in the project description ofthe Credit Agreement. Establishment of MIS could, therefore start only in May 1997,after it was included in the revised EFC. The MIS, designed by the NationalInformatics Center (NIC), will cover 18 States, CPIU, and the NIC. Equipmentprocurement faced problems during final stages; 5 core MIS modules are ready andfield tested; remaining modules are under preparation; and staff training will start afterequipment installation. The MIS will now be established with funds to be providedby the DGET for which there is a strong commitment.
(c) Improving Testing. Certification and Documentation: The existing Trade Testing andCertification wing at DGET could derive only marginal benefits duringimplementation. Because of long delays in approval of creation of key posts, theDocumentation center is still in a preliminary stage of development and has a longway to go before it provides any useful service to the NVTS. The progress so farincludes appointment of (4 of 6) professional staff; completion of minor civil works;and initiation of the procurement process of equipment. The outputs include a
7
seminar, field testing of 2 question banks, and plans to introduce objective type testsfor one trade in July 1999 - hardly enough to initiate a major change in trade testing.
(d) Strengthening DGET Women's VT Unit: This component has resulted in theappointment of 10 additional staff and creation of a Directorate of Women Occupationresponsible for overall development, planning, and monitoring. Details of futureplans, and staff development activities of this directorate are awaited and will beincorporated in the ICR.
(e) Reorienting CSTARI: The capacity for expected research role of CSTARI, agreed atappraisal, could not be developed and this might restrict research capability that wasplanned for the future developments in the NVTS. Although some additional staffand some equipment was provided, the TA provision (36 staff months of consultantsand 22 months of training) to CSTARI was not utilized and an opportunity to reorientits activities has been lost. The activities performed during the projectimplementation lag far behind the expectations at appraisal of 'a primary agent oforganizational change within the NVTS'.
(f) Studies: All the four studies agreed during appraisal have been completed after minordelays. CPIU has reported completion of 8 additional studies covering a wide rangeof critical issues in the NVTS.
Procurement and Staff Appointments
14. Procurement of works, equipment, and technical assistance (TA) were completed withconsiderable delays which necessitated two project extensions; the second was given inDecember, 1997, to facilitate procurement of modem and hi-tech equipment and TA. Could thedelays in procurement have been avoided? Probably yes, but even the qualified staff responsiblefor project implementation and procurement succumbed to red tape.
15. Civil Works: Of 438 civil works in the States, 431 are completed. The States faced theproblem of multiple State level as well as Central approvals before inviting bids and the finalaward of contracts. The DGET approved the scope and estimated cost for works under eachscheme during the initial years of the project and transferred the Central shares on this basis.Many works faced delays resulting in price escalation. Any modifications and subsequent costescalation were not approved by the DGET for reimbursement purposes. However, with regularmonitoring by DGET, all but 7 works (which are also nearing completion) were finallycompleted. Some Central schemes also could not take off due to abnormal delays in siteacquisition, appointment of an implementation agency, or appointment of architects. This led tothe cancellation of all 5 major works in the Central sector by the Bank
16. Equipment: Abnormal delays in equipment procurement resulted in two postponementsof the closing date and even with these postponements, about 20% equipment could not beprocured. The involvement of highly experienced NTPC and DGS&D as the procurementconsultants/ agency did not help and probably added yet another layer of approval to the alreadycomplex and multi-layer approval process. However, the State level procurement was moreefficient and even procured additional equipment when NTPC could not handle certain packages.Timely preparation of the equipment specifications, bid packages and institution-wise lists ofrequirements, and removal of many layers of approval would have helped in minimizing someof the delays in procurement.
8
17. Staff appointments: Delays in appointment of staff resulted in the availability, during thelast stages of implementation, of 3756 of 4250 created posts after considerable difficulties.Because of this and some other failures, project disbursements were stopped once and anotherlikely stoppage was averted by timely actions taken by the DGET/MOL to meet the Bank'srequirements. These delays resulted in: (a) belated introduction of new courses; (b) most stafftraining taking place during the end of the project for shorter than planned duration; and (c)benefits from quality improvement initiatives being passed on to the students much later thanplanned.
18. **Technical Assistance: Technical assistance utilization has been delayed and is muchbelow the appraisal estimates. These delays reduced the capacity of central projectinstitutes/centers like CSTARI, NVTI and MRCs, to provide adequate services to NVTS forimprovement of quality. The project restructuring done in 1996 reduced and rescheduled TAaccording to feasibility of implementation and urgency of needs in the States. New targets set forState sector staff training have been generally achieved. DGET organised foreign training andconsultancy services in hi-tech areas through a contract with GTZ (The contract closed on July15, 1998 with partial achievement). DGET have reported utilising bilateral and multilateralassistance for foreign training and consultancy support. Overall, the TA component, because ofits reduced scope, has only marginally improved the capacity of NVTS to provide leadership andexpertise in setting up new thrusts.
Implementation Experience
19. The project was plagued with delays since inception. In the early stages ofimplementation, State commitment and ownership was lacking and because of the large numberof States and agencies involved in implementation, there were many co-ordination andmanagement problems. Creation of minimum infrastructure in CPIU and in project States tookabout two years. Lack of timely release of funds also contributed to delayed progress in timelyachievement of most project objectives. Bank missions expressed repeated concerns about: (a)appointment of key staff; (b) failure to utilise technical assistance provisions; (c) lack of progressin women's training; and (d) overall unsatisfactory performance led to a suspension ofdisbursement in July, 1994. The suspension was lifted in January 1995. on satisfactory progressin reaching benchmarks set by the Bank and the acceptance of conditions set for continuedsupport. In addition, disbursement was suspended four times due to delays in receipt of SOEaudit certificates. From 1995 State components of the project started showing steady progress.Slow progress continued in Central components which included Hi- Tech Training Centre,AVTS, RVTIs, NVTI.
20. It appears that IF was guided by only the EEC document and not by the Credit agreementin its strict financial control over the project. Because of approvals needed at every stage, thiswas the single largest contributor to delays in the project. The price escalations andcontingencies were not allowed and the components could not exceed the EFC ceilings. Projectentities lost all flexibility and could not use additional funds that became available due strongerSDR without revision of the EFC memo that took about 2 years.
21. Major outcomes of the project, as expressed by sample beneficiary groups of students,teachers and principals, and representatives from industry during 3 workshops conducted by theICR mission are: modernization of workshops; systematic faculty development; and interaction
9
between industry and ITIs, which should all be continued vigorously during the operationalphase.
Some Major Unanticipated Project Gains
22. Some areas where the implementation resulted in unanticipated gains or exceeded SARtargets include:
(a) A draft paper proposing new policy initiatives for vocational training has beenprepared and reviewed by an expert committee comprising representatives of allstake holders. The proposals are awaiting final review by NCVT and would then besent to the Cabinet. The new policy includes decentralization, involvement ofindustry in the management and financing of VT, and flexibility in program designand delivery. This goes much beyond the anticipated scope of the Industry-InstituteCooperation proposed in the project and is likely to establish a lasting partnershipwith the industry in the management of VT.
(b) Output from New WITIs exceeded the target by 52% -- reported output is about24,300 against the target of 16,000. In addition, 6,500 have been trained in newtrades in existing WITIs and some States have started reservations for women ingeneral ITIs also.
KEY LESSONS AND FUTURE OPERATIONS
23. At the final closing, the commitment of States is high and repeated requests were madeby officials and industry to the Bank to continue support through another project as there is a lotof work yet to be done. The mission was explained the well drafted operational plan. During theoperational phase, adequate funds would be available to complete unfinished works and tocontinue quality improvement activities.
20. Following is a summary of important findings and key lessons learned during this firstProject in this sector in India:
(a) The EFC memo for such a comprehensive national project with interdependentcomponents should discourage selectivity in component approval by the IF duringimplementation. It should provide some flexibility during implementation and should also takeinto account normal price escalations and currency fluctuations, and should preferably bedesignated in SDRs. After approval of the memo, further approvals of the project componentsshould not be sought during the implementation stage.
(b) The project could have achieved greater success with more decentralization andflexibility to States and ITIs in the selection of trades according to local needs, procurement ofequipment, and curriculum development.
(c) In a national project with a high degree of complexity, participatory approaches duringproject preparation and implementation, involving States, ITIs and other professional institutions,could have improved project ownership and outcomes.
10
(d) Frequent changes in the senior implementation staff should be avoided. Technicalassistance, specially training, should be provided to project implementation staff in Bankprocurement whenever a first project is approved in a sector.
(e) To avoid delays in project implementation, land acquisition and architectural design ofbuildings should start before negotiation. Any works not coming to the bidding stage within oneyear of effectiveness should be cancelled along with the other relevant components.
Time Table for ICR:
The following time table for completion of the ICR was agreed during the mission:
Draft ICR sent to the Borrower ---------------- April 15, 1999
Borrower's draft ICR given to the Bank-------- ---- April 30, 1999
Borrower's comments received on Bank's ICR---- April 30, 1999.
Tele: 3710265Fax: 3355679
_3T9 7fmq TtI 1 Ministry of Labour
. fTT F{r9 SECRETARY Shram Shakti Bhavan
T fNi8-e909 Govemment of India New Delhi-l 10001
D.O.No.26(3)/97-CPIU (Vol.IV) May 28, 1999
I would like to thank you for your letter dated 1 lth May,1999 enclosing a copy of the draft Implementation CompletionReport (ICR) of the World Bank assisted Vocational Training Project.
I agree with Bank's assessment that the outcome of theproject has been satisfactory. Sample studies indicate substantialimprovement in internal and external efficiency of the project ITIs.There has been improvement in pass rate, retention rate,employment rate and operational efficiency in the Institutionsassisted by the project. The institutional development and physicalobjectives have been mostly achieved except for a few centralschemes. It gives me satisfaction that Bank's ICR has commendedthe extra-ordinary efforts made by the concerned officials at theCentre and States to ensure success of the project. It has alsolauded their strong commitment and desire to make a difference inthe system. I also agree that services of professionals within andoutside the NVTS have been well utilised in monitoring, evaluationand development of strategies. Apart from impact study in sevenStates,. tracer study and evaluation of training in ITIs withConfederation of Indian Industries quoted as examples in Bank'sICR, formation of Institute Managing Committees and draft NationalPolicy paper on Vocational Training are also good examples offavourable outcomes of the project, which were not originallyenvisaged.
The reasons for slow progress in the implementation ofthe project during the initial period could be attributed to the factthat it was the first project in this sector both for the Ministry ofLabour and the World Bank. The Project was highly complexinvolving 20 different schemes and 2B States/UTs apart from centralinstitutions. There were differences between Bank's and
Government's procedures. Once the initial bottlenecks were sortedout, the pace of implementation picked up. However, delays ingranting approval for extension of the project by the World Bank andban on disbursements in July, 1994 despite gaining momentum :inprocurement of equipment and civil works hampered achievement ofobjectives. In fact, it had been a good learning experience for designand implementation of projects of this nature and magnitude. OuLrview is somehow corroborated by the Bank's view mentioned in itsICR that "This project had its origins in the World Bank's efforts in thelate 1980s to enter into the Education sector in India. This firstproject, though rather ambitious and highly centralised with manyassociated problems, led to a series of Bank assisted projects intechnician education and primary education with large investments."In consideration of the circumstances, constraints and extraneousfactors brought out above, it would perhaps not be appropriate toterm Borrower's performance during first 4 years as deficient.
I would like to place on record our deep appreciation forthe support and cooperation provided by the members of the WorldBank's missions and other staff associated with the project, inparticular by Dr.S.K.Shrivastava. He has significantly helped inaccelerating the progress of implementation.
In the ultimate analysis it can be said that the projectwas timely and relevant to Ministry of Labour's long-term objectiveto modernize and expand NVTS. The outcome of the project hasbeen satisfactory. We are committed to build upon the gains fromthe project and complete the remaining tasks. We appreciate Bank'sview that future support, if any, from the Bank should focus onsupport to proposed National Policy on Vocational Training.
Yours sincerely,
(Dr. L. Mishra3
Mr.Ward Heneveld,Education Sector, Team leader for India,World Bank,70, Lodhi Estate,New Delhi - 110 003.
OWJ OlO C;DZCD ~DO~f ~
i~ ~~o tn P M I£ p moneiition Compein Report
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Apr'il 1999Government of India
Ministry of Labour L0:Dr G o E .Tn
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BORROWER'S IMPLEMENTATION COMPLETION REPORT
(ICR) FOR THE VOCATIONAL TRAINING PROJECT
(A World Bank assisted Project: cr. no. 2008 IN)
Table of Contents
1 BACKGROUND ............... 1
2 OBJECTIVES OF THE PROJECT .1
3 EVALUATION OF OBJECTIVES. 1
4 ACHIEVEMENT OF OBJECTIVES/ ASSESSMENT OF OUTCOME. 2
4.1 ACHIEVEMENT OF SPECIFIC OBJECTIVES .2
4.2 ACHIEVEMENT OF PRIMARY/ LONG-TERM OBJECTIVES/ VISION .34.2.1 Objective 1: Improve the quality and efficiency of Basic Craftsmen & Apprenticeship Training. 34.2.2 Objective 2: Expand and diversify theAdvanced TrainingProgram .. 44.2.3 Objective 3: Improving NVTS Planning Management & Supervision .. 44.2.4 Improvement in the participation of WoiAen in Vocational Training .. 54.2.5 Expansion of Capacity of Craftsmen Training Scheme: .. 5
4.3 OTHER ACHIEVEMENTS.. 54.3.1 Sector Policy objectives .54.3.2 Sustainability of Institutions. 64.3.3 Social Objectives. 6
5 MAJOR FACTORS AFFECTING THE PROJECT. 6
5.1 FACTORS NOT GENERALLY SUBJECT TO GOVERNMENT CONTROL .65.2 FACTORS GENERALLY SUBJECT To GOVERNMENT CONTROL .75.3 FACTORS GENERALLY SUBJECT TO IMPLEMENTING AGENCY CONTROL .7
6 BANK'S PERFORMANCE .8
7 BORROWER'S PERFORMANCE. 9
8 PROJECT OPERATION PLAN .10
9 KEY LESSONS LEARNT .10
ANNEXES
ANNEX- I PROGRESS OF PROJECT SCHEMES AND COMPONENTS . A-IANNEX-II DRAFT NATIONAL VOCATIONAL TRAINING POLICY . A-3ANNEX- III INSTITUTE INDUSTRY INTERACTION . A-21ANNEX - IV PROJECT COST AND FINANCING . A-27ANNEX - V ASSESSMENT OF OUTCOME .. A-28Abbreviattons..A-34Ref efeencesA-35
C:kashwani\Impact_VTP\ICR report\ICR-mainreport WB.doc
Borrower's ICR for Vocational Training Project (VTP) Page I of 10
1 Background
Training is predominantly based on Craftsmen Training Scheme (CTS) andVocationalApprenticeship Training Scheme (ATS). The Craftsmen Training Schemeprovides a structured Institutional training environment while the Apprenticeship Training Scheme isa combination of Institutional and on the job training in which the trainees are exposed to industrialenvironment. These Schemes need to be nourished on a continuous basis so as to keep them inhealthy condition. At the beginning of the project it was found that the physical infrastructure inmany of the Govt. ITIs had out-lived their useful life and required to be replaced/ modernized. Astrong need was also felt to expand the Vocational Training programs to meet estimated increase indemand of skilled workforce. The Vocational Training Project [V .T . P . ] took off in 1989, bringingin its fold major part of the Govt. ITIs [more than 500 out of the total of 862 Govt. ITIs in existence atthat time], Apprenticeship Training, training of in-service skilled workers and training of women.
2 Objectives of the Project
The project made a beginning with the following primary objectives; more appropriately be calledVision /long term objectives, with a financial provision of Rs 4415 million (EFC approved).
° Improve the quality and efficiency of Basic Craftsmen and Apprenticeship Training;
) Expand and diversify the advanced training programs; and
ID Strengthen the NVTS planning and management capacity. To increase theparticipation of women in each of the above areas
The above stated vision was to be achieved through the implementation of 19 schemes. The focus ofSAR, EFC as well as activities prescribed under the project was on following two issues:
o- Expansion of Vocational Training Programs to meet the projected demand of craftsmen.
ur Improvement in the infrastructure facilities [An underlying assumption appears to be to thatimprovement in the infrastructure facilities would lead to improvement in quality and efficiency oftraining programs i.e. achievement of vision in the long run].
Specific objectives placed before the project management units:
jr Implementation of 19 (revised to 20) schemesar Planning and administration of project finance and accountsr Procurement of equipmentar Recnritment of staff and their trainingar Construction of buildings andar Monitoring and evaluation of Project activities.
3 Evaluation of Objectives
The primary objectives of the project were very important and appropriate to the NVTS.However, these were indicated in a broader sense like improvement in quality and efficiency,expand the scope and relevance, strengthening of planning & management capabilities. Some of theterms used are not Measurable, Achievable & Testable (M4 T e.g. quality is a relative term and isperceived differently by different persons. These objectives should have been mentioned in specificquantifiable terms like the existing efficiency, the desired efficiency and the %age improvement etc.
Borrower's ICR for Vocational Training Project (VTP) Page 2 of 10
An important aim of the project was to expand basic craftsmen training and apprenticeshiptraining to meet the projected demand of craftsmen. Elaborate calculations have been made in theSAR in this regard. However, this is not reflected in the primary objectives.
The specific objectives in terrns of implementation of various schemes and components givento the implementing agencies were clear, important and measurable. The final design of the projectwas not very appropriate for achieving the primary objectives of the project. Incentive system forinstructors and provision for industrial liaison officer for each institution was not incorporated into thedesign of the project though mentioned in the SAR. The authority, powers and means needed byimplementing agencies for executing a project of this nature were not mentioned.
The project involved 20 different schemes virtually covering every aspect of vocationaltraining. These were to be implemented in 28 States/UTs as well as in Central institutions involvinglarge number of Central and State Government departments and agencies. The agencies were workingwith the Bank for the first time. The project was, therefore, very demanding for the implementingagencies, complex and risky. Sharing of expenditure by Central and State governments furthercomplicated the project.
4 Achievement of Objectives! Assessment of Outcome
Assessment of outcome! impact of the project has been done based on the studiesconducted by independent consultants, industry representatives as well as by CPIU and SPIUs. Bothquantitative and qualitative indicators have been used. A detailed assessment of outcome of the
.. .. .. ... . . .. . . . .............. .. ........ ....... . .. ... . .. = ........... = .,. ,. , ......... , =.. . . .
project has already been shared with the IDA and is available with DGET. A brief summary ofthe assessment is given below:
4.1 Achievement of Specific Objectives
M +4 o f st~~the physical and financial targets as well as institutional development objectivesM OStlhave been met. The utilization of original project outlay is more than 100%. Theimplementation of state sector schemes for most of the States has been highly satisfactory. In fact, theachievement has been about 100% in most of the components and schemes except filling up of posts,Equipment Procurement and Self-Employment Scheme as shown in the following table:
Achievement of Targets
Components ' Schemes
PHYSICAL TARGETS MoE -100%
Staff training - 108%* S AA -100%MRC -100%AV aids training- 104%* f BTC - 100%
Civil Works - 99.5% 5 RIC -100%WITI -100%
Staff posts - 87% PMUs -100%
'FINANCIAL TARGETS EMS -98%tNT - 98%
Equipment - 85%* WINT - 97.6%
r -Though some States have exceeded the targets AVTS - 92%but some Sbtes have not achieved targets.] PROVISIONAL SEC - 88%
$ A A At_' _z.__, .,-- _ _ --- _ _......._...._._...
Borrower's ICR for Vocational Training Project (VTP) Page 3 of 10
The implementation of Central Sector schemes has been partially satisfactory. HitechTraining Scheme, MIS (a new scheme added very late) and Trade Testing & Certification could notbe operationalised. The implementation of these schemes is expected to be completed within 1-2years. Technical assistance for foreign training remained largely unutilized. New RVTIs have beenpartially operationalised from temporary location as per the amended credit agreement.
f 78% of the expenditure (against 76% envisaged) has been for development of basic infrastructureA(civil works & equipment). A very high percentage of investment into development of basic
4 infrastructure shows that basic objective of the Project to improve the infrastructure facilities hasbeen achieved. The expenditure on miscellaneous activities and components has been just 3%against 6% allocated. This indirectly indicates high efficiency in project implementation.
4.2 Achievement of Primary! Long-term Objectives! Vision
The three primary objectives of the project could more appropriately be termed as Vision orlong term objectives. Assessment made towards the close of the project indicates partial to significantachievement in respect of various primary objectives. However, a proper assessment can be madeonly after about 2 years.
4.2.1 Objective 1: Improve the qualit and efficiency of Basic Craftsmen &Apprenticeship Training.
The achievement in respect of this objective has been substantial. The physical targetsand institutional development objectives associaied with this objective have been achieved. Thestudies indicate significant improvement in effectiveness of training programs.
Internal efficiency of CTS: As per independent assessment made by representatives ofindustries, teachers and administrators, the project has considerably improved infrastructure facilities,effectiveness of practical and theoretical training.
C) The internal efficiency of CTS has improved as a result of improvementin pass rate and admission rate and reduction in dropout rate.
© Theoperaton lefficiencPhs.mproved by about 10%.© The improvement in pass rate varies from 6 to 20% in various States.© The decrease in dropout rate ranges from 3-20%.
Extemal efriciency of CTS: The analysis done by different methods and data collectedfrom various sources clearly indicate substantial improvement of the external efficiency of CTS.
© Employability of ITI graduates from World Bank assisted ITIs is far superior (higherb 7f.8 to those from other Tis.
© The employers' opinion also indicates that the external effectiveness of CTS hasimproved.
0 The employment rate would have been much better but for wide spread restructuringtaking place in industry due to globalization and liberalization and also due to generaleconomic recession.
0 However, there is further scope to improve the external efficiency.
Impact of Specific Schemes:
Modernization of Equipment Scheme has helped in improving the practical training e.g.Maharashtra has reported qualitative improvement in practical training to the extent of 64.8%.
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Due to the establishment of equipment maintenance system, both the preventive and breakdownmaintenance of machines have shown a marked improvement. 92.32% (against 50% before theproject) of the machines and equipment in the ITIs were found to be in working condition showing animprovement of 84.64%.
As per assessment of trainees, 86% of instructors use AV aids but 84% of these use themoccasionally. Still this is a big improvement over the pre-project conditions when almost 100% of theinstructors used only chalk and blackboard for imparting instructions. However, major thrust forincreasing the use of modem AV Aids in the instructional process has to continue.
The new trades introduced in the ITIs have higher employment rate than traditional trades.
Improvement in ATS: The utilization of seats of apprentices as well as pass rate hasincreased. Trades started under the project mostly belong to Chemical, Hotel & Catering, Leather,printing etc. for which facilities under CTS were either not existing or were very limited.
4.2.2 Objective 2: Expand and diversify the Advanced Training Program
This objective has been partially achieved.
A VTS scheme: The outcome and impact of AVTS scheme has been good.
6 34014 persons trained against the target of 17000 ie. overshootin gthe tag P00%M6 Utilization of training capacity created has been 120. 5% *
6 70% of the trainees trained were industrial workers*.
- As per the sample survey conducted in 7 States]
o Hitech Training Scheme significantly lagged behind and could not be operationalised.However, some centers would be operationalised by the end of 1999. The Apex HitechTraining Center has started functioning partially from a temporary location. The response tothe self-employment Scheme has been mediocre in most of the States.
4.2.3 Objective 3: Improving NVTS Planning Managementt & Supervision
This objective has been partially achieved.
v Project Management Units: The setting up of project implementation units at theDGET and 18 States brought about a cultural change in the respective departments.These were provided with modem office equipment and developed computerized MISfor monitoring the progress of project. The units have also gained significant expertisein policy formulations, planning, implementation, monitoring and evaluation of projectsand programs.
Some of the important achievements of CPIU and SPIUs are:
6 Success in implementation of the project and achievement of most ofphysical andfinancial targets aswell as institutional development objectives despite next-to-nothing autonomy, flexibility and authority
b In house development of computerized MISfor monitoring the progress of several componentsb Preparation of draft paper on National Vocational Training Policy
' Development of concept of joint management of ITIs by Govt. and Industry and initiating a pilotproject
b Preparation Implementation Completion Report (ICR), necessary surveys and studies without theassistance of external consultants.
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Studies: 31 studies have been conducted against the target of 4 (Ref. Annex-V).
Central Staff Training and Research Institute (CSTARI) has been strengthened as envisaged.
9 The institute has trained 2642 participants against a target of 2000.Y During last 5 years aQut SO t5adc sythi Kan beeN catevisd & d4egs d.
, However, trade testing and certification and MIS scheme could not result in the desired impactdue to some slippage in the implementation.
4.2.4 Improvement in tlhe participation of Women in Vocational Training
A major achievement of the project is significant improvement in tie p'a'rticipation of women.However, implementation of Central Sector Schemes related to NVTI'& RVTIs has beenpartial., showing the need for site preparation prior to investment decision.
l i Seats exclusively for women in CTS have increased by 119% from 20000 to 4380Q0..Besides, seats in DGET institutes have increased by about 1000, covering, non-:.conventional trades also.
lo Some States have reserved seats for women in general ITIs.o Outputfrom New WITIs exceeded the target by 52% -24,300 against the target of 16, 000.a The women cell at DGET has been strengthened and a separate directorate for -women
occupations has been created. The infrastructure of the Women Occupation directorate.hasbeen strengthened by providing additional staffand modern offi,e e,uipment.
4.2.5 Expalnsion of Capacity of Craftsmen Training Scheme:
An important rationale for the Bank's involvement in VTP was expansion ofVocational Training programs to meet the projected demand of craftsmen. Thecapacity of Craftsmen Training Scheme has significantly increased by 87% from3.42 lakh in 2070 ITIs (1989) to 6.4 lakh in 4086 ITIs by the end of 1998.
4I Generation of strong interest in the capability of NVTS due to implementation of .'- ,! the Project had been a major factor.
4.3 Other achievements
The project has even made good achievements in areas not explicitly mentioned as objectivesof the project such as sector policy, sustainability and social objectives including poverty alleviationand equity concems.
4.3.1 Sector Policy objectives
The project has led to development of policy initiatives in various spheres of training. Mostsignificant have been related to Institute- Industry Interaction, specifically joint management of ITIsby Government and Industry. Other areas in which initiatives have been taken include revenuegeneration, sustainability of the programs, empowerment of women, training of trainers, restructuringof NVTS, demand driven training, flexibility in the programs etc.
Borrower's ICR for Vocational Training Project (VTP) Page 6 of 10
National Vocational Training Policy
The project has led to development of draft National Vocational Training Policy document, first of its kindin India, that has been highly appreciated by one and all. The World Bank's review mission of November1998 also attended the meeting of expert committee and has acclaimed the draft paper. ICR mission (Jan-Feb. 1999) of the World Bank has termed it as major unanticipated project gains. Comments recordedby the two missions in their aide memoire are given below:
World Bank in Nov. 1998 World Bank in Jan-Feb. 1999
The new training policy has the A draft paper proposing new policy initiatives foressential elements for establishing a vocational training has been prepared and reviewed byprogressive VT system and appears to an expert committee comprising representatives of allhave taken note of current stakeholders. The proposals are awaiting final review byinterational developments and their NCVT and would then be sent to the Cabinet. The newadaptation to the unique Indian policy includes decentralization, involvement of industry
in the management and financing of VT, and flexibilityconditions. This is a development in program design and delivery. This goes much beyondeagerly awaited and supported by the anticipated scope of the Industry-Institute Co-IDA and would definitely be a major operation proposed in the project and is likely tocontributor to the sustainability of establish a lasting partnership with the industry in theproject gains management of VT.
U_________._______.__F_________________._ - * .. vs
4.3.2 Sustainability of Institutions
t Gradually, concept of making ITIs partiy self-sustainable by undertaking various revenuegenerating activities is getting acceptance. Maharashtra State has introduced Production-Oriented Training (POT) scheme in the ITIs.
r State Govemments have made sufficient provisions for sustaining the programs.or Discussions to set-up skill development fund have also been started.
4.3.3 Social Objectives
The project has made significant positive contribution to the poverty alleviation and equity concerns.
- 50% of trainees benefited belong to very poor and poor families.r Underprivileged communities (SC/ST/OBCs) have got sufficient representation.
or Alternative career path has been provided for academically poor performing students &school drop-outs.
Impact on Other Govt and Private ITIs: The demand for better quality of training is forcingother Govt. and private ITIs also to improve training.
5 Major Factors Affecting the Project
5.1 Factors Not Generally Subject To Government Control
ar Inadequate capacity of suppliers to manufacture equipment in large quantity within short period.Some of the suppliers closed down their operations due to financial crisis, labour problems, etc.and could not supply the equipment. Foreign firms were not fully aware of World Bankprocedures.
Borrower's ICR for Vocational Training Project (VTP) Page 7 of 10
t- Perfornance of DGS&D, one cf the Consultants for central procurement of equipment was highlyunsatisfactory
tar High inflation rate had considerably increased the cost. Price and physical contingencies were notprovided in the project cost. There were also certain deficiencies in the original estimates.
Devaluation of Indian currency w.r.t. US$ (by about 180%) resulted in less disbursement claimedin US$ and thus surrender of credit available.
z- Mismatch between accounting procedures of Foreign Consultants (GTZ) & that required as perWorld Bank approved contract and uncertainty about funding of contract by the World Bank
r Most of civil works were small in nature, scattered in remote areas and required additions of 1-2workshops in the existing ITI building without disturbing the on-going activities. Civil contractorsshow less interest in executing such works. The World Bank's LCB procedure, which is quitecumbersome and not suited for such small works delayed execution of works. Relaxation forfollowing LCB procedure for these works was received later but with certain conditions.
ar Some of the works got considerably delayed due to litigation problems.
K3r Delay in granting approval for project extension by the World Bank.
Delays in financial approval by the Government for continuation of the project at the time of boththe extensions due to the change of Union Government
5.2 Factors Generally Subject To Government Control
*r Complex, cumbersome and time-consuming procedures. The Project implementation was, infact, subjected to triple bureaucracy - of the World Bank, the Central and State Governments.
ar General ban on creation of new posts, filling up of vacant posts, reduction in existing posts andother measures aimed at reducing Govt. expenditure as a part of SAP significantly delayedimplementation of schemes.
or Some States faced severe financial resources constraints and could not provide sufficient funds.
or Delay in filling up of posts and frequent changes in key staff at the Central & State levels.
or CPIU and SPIUs were devoid of authority and powers to make decisions.
or Integrated finance division of Ministry of Labour had the authority to sanction expenditure andgranting other approvals but it was not responsible for project implementation. So, it did nothave a stake in the success of the project and clearly lacked association with the project.
5.3 Factors Generally Subject To Implementing Agency Control
r Training of implementing officers should have been much more comprehensive -encompassing not only purchase procedures but also technical knowledge, planning andproject management.
Borrower's ICR for Vocational Training Project (VTP) Page 8 of 10
6 Bank's Performance
Project identification was consistent with the Government's development strategy. Thepreparation, design and appraisal of the Project was generally satisfactory but as mentioned underthe topic 'evaluation of objectives', it could have been much better. The SAR had identified 4 keyareas and linked the Project investments with these 4 key areas. However, two of these key areasnamely 'improving the incentive system for instructors particularly in the advanced skill programs'and 'development of a comprehensive monitoring and evaluation system as part of ManagementInformation System' were not incorporated in to the design of the Project.
SAR had identified several risks associated with the Project. However, corrective measuresfor all risks were not incorporated into project design. Large number of schemes were clubbedtogether in to a single project making it quite complex and demanding. The primary objectives werenot quantified.
Supervision: Since 1995, the supervision by the Bank became very effective and helpful inaccelerating the progress of implementation. The Bank started detailed reviews including holdingmeetings with every participating states. This system proved to be a turning point and resulted inmuch beneficial effects.
While the performance of the Bank can be said to be satisfactory and helpful in general,yet the following few instances which had a negative effect need to be mentioned for properunderstanding of the overall outcome of the project.
onr Ban on disbursements: Bank chose to impose ban on disbursements in July 1994 despitemomentum gained in equipment procurement and execution of civil works. Even adequatesteps were taken for the software components for which the Bank had expressed its concern.The ban was lifted in January 1995 only when Secretary [Labour] took up the case directly withthe World Bank's Head Office in Washington. But the damage in the mean time was done,because it sent wrong signals to all with the accompanying element of uncertainty [thenexisting] about the possible period of the ban for which it might have lasted. In summary,this step taken by the World Bank was in total disregard of the progress made till then andseriously disrupted the project at a crucial time.
or Excessive delays in granting approvalfor extension of project: This was the first project of itskind for the DGET and the World Bank. Further, project was highly complex and demandinghaving several shortcomings in design. A certain period of extension to the originally concemedproject period should have been taken in the right spirit and agreed to without imposing toomuch of rigidity in the process. Unfortunately till July 1996 [the project was to closeoriginally in December 19961, the Bank failed to realize seriousness of the request forextension made by Central and all the State Governments in one voice. The Bank'sapproval for extension of the closing date by one year [i.e. up to December 19971 wasreceived in the last week of December 1996 with conditions of adding some new elementswhile dropping some others. This necessitating fresh approval from EFC and CCEA. By thetime their approvals were received, half of the year 1997 was already over. During this period ofhalf a year, the project virtually remained in a state of suspended animation. The story wasrepeated in nearly the same fashion at the time of second extension, which was granted forBank's financing only for a few selected components mainly for the new elements introduced atthe time of first extension.
Borrower's ICR for Vocational Training Project (VTP) Page 9 of 10
7 Borrower'.s performance
Borrower, in the context of this Project, comprises of Central and 28 State/UT Govermnentsand their various agencies and CPIU & SPIUs. CPIU and SPIUs were the implementing agencies butthe powers to sanction posts, budget, expenditure etc. and filling up of posts and construction ofbuildings remained with other Government departments, e.g. Finance Divisions, Staff SelectionCommissions, Public Works Departments etc. Therefore, it becomes pertinent to evaluateperformance of implementing agencies (CPIU and SPIUs) and other departments separately.
The preparation of Project was generally satisfactory. The project report was verycomprehensive. However, it had many errors in the estimation of costs. There was no provision forphysical and price contingencies. These errors and deficiencies led to serious problems in theimplementation stage as the Government procedures were very rigid and the implementing agenciesdid not have the flexibility to modify the original plans and estimate.
The commitment of the implementing agencies was high. Top priority was given to thisProject. However, the association of other Government departments and agencies with the projectwas weak though it received a little more attention than other schemes as it was extemally aidedscheme.
Considering the authority and powers implementing agencies had, their overall performanceof the project implementation can be proudly said to be highly satisfactory.1 Most States achievedphysical targets. Some of them have exceeded the targets. However, perfonnance of some of theStates had not been filly satisfactory. The performance of other government departments was by andlarge deficient. Having authority but no responsibility for project implementation and lack ofassociation with the project could be a major reason for deficient performance of other governmentdepartments. Implementation during the initial years had been slow.
The strong commitment of borrower towards improvement of vocational training systemin India has been reflected in following initiatives taken by it. These initiatives far exceededexpectations about benefits from implementation of this Project.
' Setting up of Institute Managing Committees under the Chairmanship of Industry'srepresentative in ITIs and expanding the scope of Industry Institute interaction to virtuallyall spheres of activities in MTIs goes much beyond the anticipated scope of the instituteindustry cooperation proposed in the Project.
O Proposal to set up skill developmentfund
' New policy framework for NM7E is aimed at thoroughly transforming the system into ahighly dynamic system. The draft paper on 'National Vocational Training Policy' has beenhighly appreciated by all the stakeholders and the World Bank
The borrower generally complied with major loan covenants/commitments. Theimplementing agencies also complied with the requirements of various supervising agencies.
Borrower's ICR for Vocational Training Project (VT?) Page 10 of 10
8 Project operation plan
The Central and State Governments are highly committed to complete the Project implementation,sustain gains of the Project, continue to run the programs started under the project, improveinstitution/management effectiveness, develop policy framework and improve institute-industryinteraction. The respective governments have assured the necessary plan outlays and budget provisions.Central Government would also be providing assistance to the State Governments under IXth Five YearPlan. Further, efforts are being made to make NVTS self-sustainable. Detailed Project Operation Plan hasalready been shared with the IDA and is available with DGET.
However, it would take time for these efforts to materialize. The capacity of Governments toprovide funds for further upgradation of infrastructure by capital investment or even for training of staff isvery limited. The system would require further financial and technical assistance for the development ofNational Policy on Vocational Training, Strengthening of Institute-Industry interaction, training of trainers,Hitech training, Strengthening of planning & management capabilities including MIS and women training.
Therefore a follow-on project covering the above-mentioned areas is highly desirable. The Banhmay continue monitoring of the project operation. The monitoring may be done once in a year. Theevaluation of the impact of the project by OED may be done after two years of project closing date (in 2001)
9 Key lessons learnt
lThe project preparation and design needs to be improved. Means, authority and powers needecto achieve the objectives should be clearly specified. The project estimates should be morerealistic and should incorporate physical and price contingencies.
a One project should consist of only those schemes aimed at achieving a common objective ratherthan clubbing too many schemes and thereby making the project complex.
tar Suitable incentives for the staff should be incorporated into the design of the project.
NCVT does not have sufficient organizational set up to inspect, monitor, evaluate and controlprograms and institutions recognized by it. The improvement in quality and efficiency of Basiccraftsmen and Apprenticeship training schemes or any other scheme can not be achievedwithout an effective system to monitor, evaluate and control the programs.
tr The Project Management Units should be empowered to implement the project within the broadguidelines provided in the approved project. The unit should have autonomy and powers to takedecisions without referring to higher authorities in Government or to IFD. These should haveflexibility to make minor amendments.
ar Decentralize the powers to the States and further to the institutions as far as possible.
r Improve the management effectiveness of implementing units by development of extensivecomputerized management information system and use of modern Project management tools.
is- Frequent changes in project implementations staff should be avoided.
Before the project commences, project implementation units should be made fully functionalhaving well trained staff and modem office equipment.
The World Bank's rules, regulations and procedures should also be flexible and take intoconsideration borrower's environment which are bound to vary from country to country. Bank'sstrategies should aim at achieving those development objectives for which loan has beenprovided and how best those can be achieved.
C:\ashwanimpact_VTP\lCR report\1CR_mainrcpor_WB.doc
VOCATIONAL TRAINING PROJECT Anx-.pa -
____________________ ________________ _________ STATUS OF PROJECT SCHEMES IN STATESIUTs (Date of Updation 16/4/99)
S3.. State/UTWl*fl&t0 ZqUiPaesit k.V.AiNow1e Trade ~ Basic Trg. Relae nt VS New WIT! Nowv Trades
lb. 5 ds~~~~~~~~~Mintenance Courses Contre m iotion Contrea in WITZ npo
- ___________ T ~~~~~K- 'I ~A T A T A T A T A T ~ IK A IAT
I. Asadhra Wwadesh 27 27 1 ,6 1 *6 24 24 13 (23 )13 (23 I 1 2 2 6 6 13 13 8 (15 ) 8 (15 ) 6
2 Azunaakhal Pradesh 1 1 1 1
3 Assaa 9 9 1,3 1,3 10 10 6(10)6(7) 1 1- 3 3 2(6)2(4) I
4 iazha 29 29 1,5 1,5 30 30 15(30)15(30) 2 2 1 1 8 8 2(4)2(4) 0
6 Gujarat 18 18 1,7 1,7 18 18 9(15) 9(15) 11 4 4 3 3 4 4 2(4)2(4) 0
7 azyan 1 7 17 1,8 1,8 1 7 17 9(17) 9(17) 11 2 2 4 2 5 5 8(13) 8(13) 0
SUjiacehaa 9 9 1,4 1,4 7 7 5(9)5 9) 4(8)4(8) 2
5.765 7 7 1,2 1,1 7 7 4(8)4(8) 1 1 4
1@0Kazmatalta 201 20 1,3 1,31 13 13 7(14) 7(14) 1 1 2 21 1 1 10 10 4(4)4(4) 4
It X.aala 1 5 15 I,4 1,4 19 19 7(14) 7(14) 1 1 3 3 1 1 5 5 3( 6).3 6) 4
12 Madha ftsdaa 21 21 1 ,9 1I 9 21 21 11 (22 )11 (22 )2 2 1 1 10 10 5 (10 ) 5 10 ) 5
13 MIMhasbtza 32 32 1,13 1,13 38 3816(31)16(31) 1 1 4 4 8 8 9 9 6(12) 6(12) 10
l.4 Maaipu I 1 1 1 1(2)1(2) 1 11
is )Ngha1aya 3 3 3 3 1(2)1(2)
17 )iegaland 1 1 ~~ ~~~~~~~~~0 0
18 Orissa 11 11 1 ,2 1 ,2 11 11 6 (11 )6 (11 I 1 1 I 1 1 6 6 2 (4 )2 (4 ) 3
lslPunjab 29 29 1,7 1 ,7 32 32 18(30 18(30) 1 1 2 2 1 1 5 5 5(10) 5(10) 0
20 Rajasthan 21 21 1,3 1,3 15 15 10(20)10(20) 1 1 1 1 2 2 4 4 1 (3)1(3) 0
21. TaIl Nadua 31 31 1 ,6 1 ,6 38 38 16 (25 )16 (25 ) 2 2 4 4 1 1 5 5
22 !ipuza 1 1 1 1 1(2)1(2) 1(2)1(2 1
23 Uttar pradash 43 43 1 ,12 1 ,10 50 50 36 (64 )36 (64 ) 4 4 4 4 2 1 9 9 8 (13 ) 8 (13
24 eat Bengal 18 18 1,4 1 0 17 17 9(17) 8(14) I 1 1 1 4 4 2(4)2(3) _
25 Chandigsxli I 1 1 1 1(2)1(2) _
26 Deasa and Diii 1 I 2 I 2
27 DeLbi 10 10 1,1 1,1 10 10 2 (4)2(4) 1 1 1 1 1 11 2 1 2 _
23 Poudiaherky 1 1 1 1
Total 378 378 19 ,100 19 ,93 387 38725(7 ) 204 (370 ) 17 f 17 38 38 3 30 10[ 0]64(2 )64(171 1
- ________________ ITl Is N i W ITI ITls s IT I Cus)ICour ouse)-____-_I - Ils........re) tICures Ils
NOTES 1.T Ta lrget A - Achievement (Highlighted figure Indicates that tar-gets-have not been achieved)
2. Figures under equipment maintenance represent state level workshops .ITICells
3. Figures under now trades represent No. of ITIs and N4o. of courses (in brackets) A-i
A-2
VOCATIONAL TRAINING FPROJECT Annex - I, page A-2
PROGRESS OF PROJECT COMPONENTS IN STATES/ UTs
(Date of Updation 1614/99)
St. State/UT Staff Training Training A. V. Staff Pasts Civi Works Schemes ITIs
iT~ ~A T A~jSanct-I Filled Total Completed' Total' ~ TotalT1 oned lby' + in Number Numbe
& UTs __
Andhra Pradesh ~269 State2373 33 Progres1AnhraPraesh 283 43I9 7 36 4 ~]i 1 5
2 ArunachaliPradesh 2 1 1 16 16 2 1
3ASS=m 90 120 144 113 139 125 12 12 + 0 10 13
4 Bihakr 215 90 300 291 259 153 26, 19 +7 7 11 40
ZPo& 25 25 16 26 22 20 2 2 +0 4 3
6 Gujarat 350 360 525 593 206 201 24 24 + 0 11 22
~7 Haryana 188 128 1272 281 225 164 19 19 + 0 11 22
8 HirachaoiPadesh 93 84 144 188 34 34 9 9 + 0 7 15
9J&K 51 60 112 99 53 53 3 3 + 0 7 8
10,ja0atalka 179 249 320 334 299 260 26 26 + 0 11 30
IlKerata ~~~164 185 368 286 212 206 21 21 +0 11 29
12 MvadhyaPradesh 227 227 336 342 353, 353 30 30 + 0 10 31
13 Maharaslitra 350 349 608 618 423 423 44 44 + 0 1 1 62
14 Manipu 8 16 24 24 6 6 2 2 +0 6 I
ls Mehalaya: 10 3 30 30 4 4 3 4
16 Mizoram 2 8 16 12 2 1
: 1Na lad2 0 0 01 1
IS drissa ~~~127 167 250 267 208 165 17 17 +0 11 2.19 Punja 20 78 48 450 278 260 24 24 + 0 11 40
~20 Rajasthan: 146 166 336 380 143 143 20 20 + 0 10 26
21 jtamlltadu 235 258 350 380 258 257 29 29 + 0 9 38
22 Tripura 8 8 16 16 6 5 1 1 +0 5 1
~-23 Uttar Pradesh 274 451 360 398 508 412 62 62 + 0 11i 61
24 WestBSengal 130 151 352 324 178 118 16 1 6 + 0 10 23
25 Chandfgarh 8 8 16 16 6 6 4 1
26D1aman and Diu 6 9 0 0 6 6 1 1 +0 1 1
2.7 Delhi.-- ~74 103 200 230 48 46 6 6 +0 9 10
28 P5ondlcherry 2 1 16 16 2 1
Total. 3499 13784 16007 J6222 4246 3756 438 43 ~7 11 565
NOTES 1 The highlighted figure indicates that the targets have not been archeived2 Staff posts include key additional staff and support staff3 Centrally sponsored schemnes (expenditure is shared by GOI and the Slates)
-casnb"np_A)1p% rpoMlCRWSAjvu4b-
Annex- I1: Lratt National Policy on Vocational Iraining Page A -3
ANNEX- 1l: DRAFT NATIONAL POLICY ON VOCATIONAL TRAINING
1. INTRODUCTION ..................................................... 4
2. NATIONAL VOCATIONAL TRAINING SYSTEM (NVTS) IN INDIA ........................................ . 52.1. SCHEMES UNDER NVTS ...................................................... 5
2.2. STRENGTHS AND WEAKNESSES OF NVTS ...................................................... 5
2.2.1. Strengths ...................................................... 52.2.2. Weaknesses ...................................................... 6
3. INFLUENCE OF EXTERNAL ENVIRONMENT ................................................ . . 7
3.1. GLOBALISATION ...................................................... 7
3.2. INFORMATION AGE ...................................................... 8
4. POLICIES FOR REORIENTING THE NVTS .................................................... 8
5. MISSION STATEMENT ................................................... 8
6. OBJECTIVES .................................................... 8
7. KEY SHIFTS IN EMPHASIS ENVISAGED IN NVTS ................................................... 10
8. THRUST AREAS .................................................... 11
9. PROPOSED POLICIES .................................................... 12
9.1. SCOPE ................... 12
9.2. EQuITy CONSIDERATIONS .. 12
9.3. MANAGEMENT AND ORGANISATION STRUCTURE .13
9.4. FINANCING .. 139.5. TYPES OF TRAINiNG PROGRAMMES .. 14
9.5.1. Pre-service training ............................................................. 149.5.1.1. Formal Training ..................................................................... . 149.5.1.2. Non-formal training .................................................................... 14
9.5.2. Continuous and in-service training for upgradation of skills of existing workers .............. 149.5.3. Retraining of Retrenched/Separated Workers ............................................................. 149.5.4. Training and development of trainers and other staff ........................................................ 149.5.5. Distance Education ............................................................. 14
9.6. CURRICULUM . . .15
9.7. TESTING OF COMPETENCIES . . .15
9.8. HUMAN RESOURCES . . . 159.9. RESEARCH, MONITORING AND EVALUATION . . .16
9.10. INTERNATIONAL CO-OPERATION . . .16
9.11. ENHANCING THE STATUS OF VT . . .16
9.12. ROLES AND REspoNsIBILrTiEs OF VARIOUS STAKEHOLDERS ... 16
9.12.1. Central Government . 169.12.2. State Governments: .179.12.3. Employers . 179.12.4. Private proprietary training institutions . 179.12.5. DGETinstitu es. 179.12.6. Employees. I 9.12.7. Trainers.1 79.12.8. State Government Institutions .189.12.9. Other Central Ministries/Organisations dealing with Vocational Training .18
10. COMPOSITION OF EXPERT COMMITTEE . . .............................. 19
Annex- il: D)ratt National Policy on Vocational Ilraining Page A - 4
National Policy on Vocational Training
A Dynamic Indian National Vocational Training System (NVTS)
i. INTRODUCTION
India is second most populous country in the World. With a population of about100 crores, human resource development plays an important role in the nationaleconomic development. Most of the developed countries and many developingcountries, and particularly those striving for a more competitive market for their goodsand services, are giving enhanced focus to the technical and vocational education andtraining (TVET). The stimulus for this enhancement stems from a number of sources:
The rapid internationalisation of the world economy;The increased emphasis on competition and the development of global markets;
: The need for increased quality in goods and services, if enterprises are to be competitive;: The changing role of governments as they move away from providing services directly in
order to concentrate on policy and regulation in areas prone to market failures;i The increased emphasis on cost of high value added, high skill training borne by beneficiary
and user industry.
There have been many successful examples of countries, which are poor in naturalresources and have relied on the enhancement of human resources to develop the nation.Japan is a good example in this regard.
The increasing pace of globalization and technological change provides both challengesand growing opportunities for economic expansion and job creation. In taking advantage ofthese opportunities as well as in minimizing the social costs and dislocation, which thetransition to a more open economy entails, the level and quality of skills that a nationpossesses are becoming critical factors. The choice between taking the "low road" in termsof competing through lowering wages and social benefits and the preferable alternative oftaking the "high road" of raising labour productivity and incomes will require flexible andresponsive training systems and greater investment in skill development. Countries withhigher and better levels of skills adjust more effectively to the challenges and opportunitiesof globalization. The skill level and quality of the workforce will thus increasingly providethe cutting edge in successfully competing in the global economy. Strengthening theinfrastructure for vocational skill training and replacing skills, which have becomeobsolescent by new skills should be one of the primary approaches for generation ofemployment.[World Employment Report 1998-99, ILO]
Any strategy to build a competitive and high-skilled workforce in today's economyrequires careful attention to ensuring the access of women to education and trainingopportunities. Globalization and new work technologies and work organisation have greatlyaltered women's labour market status in recent years, in ways that both increase their needfor skills and present obstacles to their acquiring new skills [World Employment Report1998-99, ILO]. In India, at the end of the 31' March 1997, out of a total of 27.9 millionemployment in the organised sector about 4.6 million were women, Which is around 16.4%.More than 50% of the women were employed in community, social and personnel servicesindustry. NSSO survey in 1993-94 shows that about 93.7% and 88.8% women labour force
Annex- If: Vratt National Policy on Vocational I raining Page A - 5
in rural and urban areas respectively did not possess any vocational skill. There is arequirement of encouraging more women for the Vocational Skill Training.
Vocational Training (VT) is an important and essential input for human resourcedevelopment. VT. is concerned with the imparting and acquisition of technical skills,knowledge and attitudes immediately before, during or between periods of work. Itincludes pre-service training, apprenticeship, in-service training, upgrading in vocationaltraining centres and retraining for new occupations. Vocational training can thus bedistinguished from the vocational education. While vocational training attaches importanceto imparting job-related skills and knowledge, vocational education gives priority to basicknowledge and general understanding.
2. NATIONAL VOCATIONAL TRAINING SYSTEM (NVTS) in INDIA
The primary objective of the NVTS in India is to meet the skilled workforce needs ofthe Industry. According to the Constitution of India, vocational training is a concurrentsubject matter, implying that the Central Government and the State Governments shareresponsibility for Vocational Training. At the national level, the Directorate General ofEmployment & Training (D.G.E.& T.), Ministry of Labour is the nodal department forformulating policies, laying down standards, etc. in the field of Vocational Training. It alsooperates a number of training related institutions. At State levels, the State GovernmentDepartments responsible for vocational training participate and also operate training centres.
Two tripartite bodies, viz. The Central tpprenticeship Council (CAC) - a statutorybody and the National Council of Vocational Training (NCVT) advise the Governnent onformulation of policies and procedures, and prescribing of standards and norms in respect ofthe Vocational Training schemes. Corresponding State Councils advise the StateGovernments in respect of Vocational Training at the State level.
2.1. SCHEMES UNDER NVTS
The National Vocational Training System (NVTS) in India with DGET being theApex Administrative body comprises of the following main training sub-systems.
(a) Craftsmen Training Scheme (CTS)(b) Apprenticeship Training Scheme (ATS)(c) Training Schemes including entrepreneurship training specifically targeting women.(d) Craft Instructors' Training Scheme (CITS)(e) Advanced Vocational Training Scheme (AVTS) and Hitech Training(f) SupervisoryfForemen Training Scheme(g) Staff Training and Research Programme(h) Instructional Media Development Programrnme
2.2. STRENGTHS AND WEAKNESSES of NVTS
2.2.1. Strenz'ths
NVTS has made rapid progress and has been the primary source of skilled manpowerto industry. It has made a place for itself which is well recognised nationally and tosome extent intemationally as well. The strengths of NVTS are:
Annex- l:L ratt National Policy on Vocational Iraining Page A -6
© the system's regular and increasing contribution to the stock of skilled manpower© the efforts to meet emerging requirements and introduce new schemes and programmes
© the uniforn curriculum, procedures, regulations, national coverage and creditability ofthe system, which ensures mobility of labour.
© The system 's international recognition© A good structure having combination of institutional and Apprenticeship training© Involvement of private sector and NGOs in setting up training institutions.
© Infrastructure available for providing skill training at varying levels.
2.2.2. Weaknesses
The effectiveness and efficiency of the system is low.
C There is mismatch between skills requirement of the world of work and skillsproduced by NVTS.
® The unemployment rate of VT graduates is high.0 The resources are not being used optimally in producing skilled workforce.
Some of the causes for these weaknesses are:
The emphasis had been on quantitative rather than qualitative aspects. There hasbeen very fast growth in number of ITIs, particularly Private ITIs. Infrastructurefor monitoring, evaluating and controlling the quality of training in ITIs byNCVT is highly inadequate. Many of the State Councils for Vocational Trainingare not functional.
' The system caters mainly to the needs of the organised sector, which representsless than 10 % of the total workforce. The requirements of modem high-techindustries and services sectors as well as those of unorganised sector are notproperly taken care of. The manufacturing sector component of organisedsector, from which most of the trades have been identified, is shrinking in termsof employment, calling for a shift in emphasis. Further, the system mainlyprepares the workforce for wage employment. The component of training forentrepreneurship is not adequate and the linkages are conspicuous by theirabsence.
t Lack of well defined policy framework. The system is highly centralised. Someof the recommendations of NCVT remain unimplemented because it is non-statutory advisory body only. The councils do not have their own secretariat.
t Officers lack motivation and use of modem management techniques. There isno scheme for systematic training and development of officers. Quality oftrainers need to be upgraded at regular intervals by appropriate interventions.
r There is shortage of budget provisions for raw material, consumables andmaintenance in most of the ITIs. Salaries consume about 90% of operatingcosts.
Annex- II: Dralt National Policy on Vocational _Iraining Page A - 7
v Curriculum are basically designed for teaching technical skills and do not takecare of key qualifications or core competencies, which employers treat as one ofthe most important characteristics. Revision of curriculum takes a very longtime.
9F Most of ITIs are continuing to offer unpopular trades to students.
Training programmes being standardised on a national basis lack the desiredflexibility to meet regional and local needs.
c As trade tests are conducted centrally from the DGE&T(HQs), sometimes thereis a lack of proper monitoring and control resulting in lack of objectivity.
c Inadequacy of skilled manpower information system. There is no systematiccollection, processing, and analysis of data.
' The involvement and participation of industry in training in ITIs is notsatisfactory. This is a major cause for low external effectiveness of trainingprogrammes. Pre-employment vocational training is perceived to be aresponsibility of the government. Industry is reluctant to increase theircommitment beyond what is presently envisaged under apprenticeship training.This situation contrasts with the attitudes of Industry and Trade in countries,which have recorded appreciable growth in economic development.
The Apprenticeship training, which by its concept is more relevant due toinvolvement of industry, is seen as:
an imposition by employers' cheap labour by workers' organisations.' temporary employment by apprentices.
3. INFLUENCE OF EXTERNAL ENVIRONMENT
3.1. GLOBALISATION
With the Globalisation, liberalisation and entry of multi national companies, theindustrial sector has taken a new shape. The emphasis is more on:
I. Conforming to international quality standards2. Lower cost of production3. Dependence on micro-processor controlled machines4. Forward and Backward integration5. Close monitoring and control6. Emergence of new trades and competencies
Besides the employment growth in the organised sector is on the decline. Majorgrowth has shifted to unorganised, service and rural non-farming sector. Vocationaltraining thus needs reorientation so as to meet the requirements of the changingscenario.
Annex- 11:Dralt National Policy on Vocational [raining Page A - 8
3.2. INFORMATION AGE
The advent of the information age has important implication for NVTS.
> First, NVTS programmes for young people to acquire the skills necessary to earn aliving need to be upgraded from secondary to higher secondary education level foroccupations in hitech areas.
' Second, life-long learning may be made an integral part of skill developmentprogrammes to cope with rapid changes in economy.
> Third, with technological advances in information and communications systems, it isnecessary to alter our conventional concepts of classrooms, teaching-learningmethods, curricula, and administrative aspects of NVTS. There is need also to usemulti-media information technology in the management of NVTS systems, contentsand teaching-learning methods.
Fourth, information age implies that repetitive single skills will face depression inreal wages, as areas where labour is cheap in these areas are very quickly identified.Multiskilling will therefore need more emphasis.
4. Policies for reorienting the NVTS
To meet the challenges posed by the rapid changes in the socio-economicenvironment, the NVTS must prepare to change now and rapidly develop the ability tobe sensitive to change and become flexible and proactive. Mission, Objectives andPolicies for reorienting the NVTS are proposed below:
5. Mission Statement
To help faster social and economic development of India by efficientlyproducing qualified and competent workforce, which is flexible and responsiveto the needs of dynamic labour market (World of work), with close cooperationof all the stakeholders, while taking sufficient care of equity considerationsincluding gender.
To improve the standard of living of workforce by providing relevant and highquality training resulting in value addition and improvement of theiremployability and real eaniings.
6. Objectives
1. To produce qualified skilled workers efficiently with the required levels ofcompetencies as needed by the dynamic world of work covering both organised aswell as unorganised sectors of economy; to take cognisance of shift from
Annex- II: Dratt National Policy on Vocational Iraining Page A -9
manufacturing to services sector and to strengthen inputs on entrepreneurial andbehavioural skills.
2. To improve participation of women, disabled and other disadvantaged groups invocational training by holistically addressing problems of access to training, toemployment opportunities including self employment, difficulties in workplace, soas to assist in their empowerment.
3. To provide facilities for life long learning and upgradation of skills through a varietyof flexible methods to suit individual's requirements and changing technology.
4. To device a system to assess prior learning and work experience and dovetail it withtraining process.
5. To ensure availability of adequate instructional media as also qualified trainers,planners and managers in NVTS
6. To share the responsibilities for producing qualified workers with variousstakeholders, in particular with employers and private providers of training. Tostrengthen linkages and cooperation among various learning places and the world ofwork.
7. A training system with multiple entry/exit points and flexible delivery.
8. To enable each vocational training institution the freedom to strengthen its activitiesand grant adequate autonomy to function effectively. Develop training institutionsaccording to the needs of the local region and situation of the institution to helptrainees choose courses as per their abilities and interests.
9. To encourage international cooperation in the field of vocational training.
10. To ensure a sustainable funding mechanism to maintain and upgrade the traininginfrastructure.
11. To strengthen the research, planning, monitoring, evaluation and managingcapabilities. To have proactive training policy to anticipate the future needs andsuitably adapt the system to meet them.
The NVTS should be:
' Relevant
> Efficient
' Accessible
Cooperative and Consensual
High Quality
Annex- ii: Urat National Policy on Vocational I raining Page A- 10
7. Key Shifts in emphasis envisaged in NVTS
(S.N EXISTING FUTURE PRESPECTIVE_~~~~~~~~~~~~
1. O A supply-driven system on a, A demand-driven system guided by labour o} large social demand. , market signals. However, it would take care of '
equity and gender issues. t
2. 0 NVTS focused on the limited j Focus would be on covering wide range of% occupations in formal sector. occupations both under formal and non-formal'4 sectors. A proactive policy to meet the needs
4' of new emerging occupations and tertiary 'ifPrgamsector. r
3. Pro tricted for High value added vocational training will 0% students completing at least 8 require at least eight years of good general ?4 years of general education education. With spread of education, and f4
4 4 sustained HRD, it may be increased :progressively to higher secondary level -education. However, from the short and
i medium term perspective to augment rural:*10 develdpment, non-formal, flexible and need-
7 based vocational programmes will also be >X made available to neoliterates, school drop- :
1 4i 'outs from various stages, unemployed or S' partially employed persons. Vocational
0, 01 ol training programmes will also have to be, O;-. devised for women's empowerment.4 /O
? 4. Focus on pre-service training Focus both on pre-service and in service '0 0 training. Emphasis would also be on providing4 ' facilities for life-long learning through a:4 4', 0 variety of flexible methods to suit individual's '
f needs. Training and development of trainers,0 O, planners and managers would be a key thrust 00 ' area. j4 .,s,s>a.', .,,,.,.,.,./,^s,,,,,,,,.,,,.,.,.,,,,,, ---- 4- ,,,,,, _ __. _,_____.._,
l 5. No official recognition of A system which rationally recognizes skills $prior learning and 'competencies' wherever and however,
4r i a s4s .smnsnns ssss~nthey are obtained. O..
'4 .. ....6. Minimal access to products Products of vocational training courses will be '
i '4of the vocational taining given opportunities for professional growth, ,I % stream for higher technical ¢ career improvement and lateral entry into '0 and professional education. I courses of general, technical and professional* , education through appropriate bridge courses. o
7. The system is highly The system would be decentralised and made '
Annex- I: Vratt National aolicy on Vocational [raining Page A - 11
S.N. |EXISTING llFUTURE PRESPECTIVE
centralised. The management; accountable to users. The responsibilities forE 4and financing of the system a management and financing of the system
is predominantly a 0 would be shared with all the stakeholders. 30 government responsibility. ' 0
i 8. # Inadequate interaction and ' Good interaction and coordination between,0. 0 coordination between providers of Institution based basic training
providers of Institution based ' and Apprenticeship training. One council; basic training and ' having regional setup would control all types
i 0 Apprenticeship training. : of programmes. 000, ol Separate councils for CTS, ;
,.andATS.
9. 8 A training system delivering g A training system delivering 'competencies' ini 'certificates' after line with nationally recognized standards.t examination. Focus of: Focus of curriculum would be on developing! curriculum has been on technical, methodological and social o
I' 4imparting technical skills competencies aimed at providing broad4
E ; qualifications.
# 10. A training system with o A training system with multiple entry/exit fminimum flexibility in points' and flexible delivery employing new'delivery $ modern training technologies.
11. Low priority to employment Recognise employment and higher earnings $s aspects - both in wage and self employment as a key
3~rn.12 5sm'wim n parameter of success of training.
0 12. £Low allocations for 0 With the promulgation of PWD Act, need forprogrammes for People with % higher allocation and coordination of activities iDisabilities $ with other ministries.
8. THRUST AREAS
1. Sharing of responsibilities for management and financing with all stake holders;
2. Strengthening of linkages between ITIs and the local Industrial units;
3. Autonomy to training authorities; Decentralization and accountability to users;
4. Training and development of trainers, planners and managers associated with
Vocational Training. Career advancement and compensation packages with the
best in Industry so as to attract & retain good qualified and experienced persons
from industry.
5. Life-long learning and continuous upgradation of skills;
Annex- If: ratt National Policy on Vocational Irainmg Page A - 12
6. Meeting demand for qualified skilled workforce for the new emerging areas
including services sector;
7. Reorienting the focus of the curriculum so as to give emphasis on the
development of key qualifications or core competencies and development of
entrepreneurship;
8. Modularization of training programmes and multiskilling;
9. Strengthening of research, planning, monitoring, evaluation and managing
capabilities;
10. Adoption of new modem training technologies including multi-media;
11. Evaluation of competencies in a fair manner and recognition of prior learning;
12. Restructuring of Management and Organisation structures at all levels.
13. Providing professional growth opportunities to the products of VT and
improving the image of Vocational Training;
14. Focus on improving opportunities for women, disabled and other disadvantaged
groups in vocational training and in the work place;
15. Synergise vocational training programmes with other ministries and employers
and NGOs.
16. An effective vocational guidance and councelling system.
17. Strength of VT is practical hands on training that distinguishes it from general
education. This strength will have to be sustained.
9. Proposed policies
9.1. SCOPE
*: Skilled workforce requirement of both organised and unorganised sectors of economywould be met through suitably designed training programmes. However, emphasiswould be on quality.
* Focus would be to identify and meet the needs of new emerging occupations and thatof tertiary sector.
4* A pro-active policy would be adopted to dynamically link the production of skilledworkforce to the world of work.
9.2. EQUITY CONSIDERATIONS
4* Adequate participation of women, disabled and other disadvantaged groups invocational training by holistically addressing problems of access to training, toemployment opportunities including self employment, difficulties in workplace, so asto assist in their empowerment
Annex- 11: L)ratt National Policy on Vocational 'Iaining Page A - 13
* Suitable non-formal, flexible and need-based programmes and special institutions willbe started for the disadvantaged groups. These groups will be encouraged to joinprogrammes through various incentives.
9.3. MANAGEMENT AND ORGANISATION STRUCTURE
* The NVTS should be autonomous, sufficiently decentralised and accountable tousers. The pattern of restructuring of NVTS envisaging the reorganisation ofpresent system as follows:
r Formation of an autonomous and statutory apex body in place of existingNCVT and CAC, which would have representatives of Central governmentministries/departments, State governments, employers associations, tradeunions, NGOs, experts etc. Research, Policy planning, standards settings, co-ordination and evaluation of all types of formal and non-formal vocational trainingprogrammes would be its major responsibilities. Devolution of operationalresponsibility to state level councils and further to local level bodies andinstitute/company level. Within the broad policy guidelines fixed by national levelapex body, greater role may be given to the employers for operationalisation ofvocational training system so that training programmes meet labour marketrequirements.
Close industry- institute interaction. Direct participation of employers and othergroups in the management of Institutions.
Big companies may have their own basic training centres/ takeover control of anITI. Small and medium enterprises may pool resources to operate Basic TrainingCentres/ITIs. ITIs may be managed by a board in which industry has 50% stake.
> Private initiative in starting ITIs may be encouraged but with rigorous qualitycontrol.
9.4. FINANCING
* Progressively shift the responsibility for funding of the programmes from Governmentto users (mainly employers). Ultimately, fresh Government funding may be restrictedto institutions for people with disabilities, Institutions in North East, and in hilly! tribalareas and programmes for women groups; and provision of scholarships, and forundertaling research and development activities. The accountability to users(employers, employees, trainees etc.) can be ensured if they are bearing the cost of thetraining. This will ensure that users take genuine interest in the operation andmanagement of training institutes. Hence, diversification of sources of financing hasbeen suggested.
*: Levy on companies (Skill Development Fund) either by governnent or Industry-Tradebodies to be a major source of funds for sustaining the system.
*: Generation of revenue by ITIs may be encouraged by undertaking activities, whichhelp in improving the skills of trainees and staff.
*: Use international and bilateral financing as & when appropriate.
Annex- 11: Vratt National Policy on Vocational Frainng Page A - 14
9.5. TYPES OF TRAINING PROGRAMMES
9.5.1. Pre-service traininz
9.5.1.1. Formal Training
*: The broad-based basic training would be conducted in a vocational training centrefollowed by specialized on-the-job training as part of Apprenticeship training in theactual work environment.
*: The scope of apprenticeship training would be enlarged by covering more occupationin emerging high-tech training areas, service sector and informal sector.
9.5.1.2. Non-formal training
* The non-formal training would be aimed at school dropouts, neoliterates and peoplewith disabilities. It would be mainly on-the-job training, which could be supplementedwith training in a training centre.
9.5.2. Continuous and in-service traininz for up-radation of skills of existingworkers
3 The facilities for life-long learning through a variety of flexible methods would beprovided to suit individual needs. This may include short and long-term formal andnon-formal courses linked to the labour market requirements.
4 Encouragement and incentives would 6e given to the individual for continuouslyupgrade their qualifications.
4 Facilitate to upgrade skills to meet new technology requirements.
9.5.3. Retraining of Retrenched/Separated Workers
* One of the consequences of globalisation and increased competition is theretrenchment/ separation of workers. Due to advanced age and likelihood of lowerqualifications such workers may find it difficult to get back into wage employment.The strategy primarily in the first instance should be to retrain them for newer skills ortransfer them into allied services sector after reorientation. In either case, retraininghas to be done in a manner that their living standards are at least maintained.Retraining and redeployment are thus analogous to the rehabilitation process in adevelopment project.
9.5.4. Training and development of trainers and other stafi
* Training and development of trainers and other staff would be a key thrust area.* A new nodal institute for performing all functions for instructor training viz., research,
developing norms, curricula, instructional media and training of instructional staff maybe set up.
4* The help of premier institutes in India, expert and international institutions may betaken for the development of suitable training programmes.
9.5.5. Distance Education
* Distance education programmes may be started.
Annex- 1:1 ratt National Policy on Vocational Iraming Page A - 15
9.6. CURRICULUM
The basic training may be broad-based with the emphasis on development of keyqualifications or core competencies for increasing flexibility and to prepare trainees for awide range of jobs rather than being too job specific. Progressively encourage training onmodular basis, so as to develop multiskilling.
Flexibity in curriculum so as to take care of local industries needs.
I The training program would also be aimed at self-employment and development ofentrerpreneurship skills.
0 Use of modern learning techniques
0 Trainees during institutional training should be exposed to quality circles, work culture inindustries by arranging industrial visits and on-the-job training.
The primary role and responsibility for curriculum development and revision should be ofconcerned associations of employers of that particular industry sector.
The proposed nodal institute for media, curriculum and trade test development (which is tobe set up by restructuring CIMI) shall co-ordinate the curriculum development activities.
9.7. TESTING OF COMPETENCIES
The examination system should ensure that the performance and competence of thetrainees are effectively measured.
Competencies testing programmes for certifying different levels of competencies indifferent sectors may be started. This will also help assessment of prior learning and workexperience of workers without formal qualifications.
National Trade Testing and Certification Authority may be set up byrestructuring/converting present trade testing cell at DGET Hdqrs., which will work incoordination with the proposed Nodal Institute for the curricula, media and trade testdevelopment.
Trade Testing and Certification may be progressively decentralised. However, recognitionof qualifications at the national level should be ensured.
9.8. HUMAN RESOURCES
Ensuring qualified teachers, planners, managers and other staff in the NVTS by prescribingsuitable qualification norms, compensation packages, career growth opportunities and byproviding training and development opportunities.
0 Fast track career advancement for trainers would be linked to achieving higher professionalqualifications, employment level of trainees, and for publications in relevant fields inreputed national / intemational joumals, as also in performance in international and nationallevel skill competitions.National awards to outstanding trainers and other staff assciated with VT.
Annex-11: Dratt National Policy on Vocational I raining Page A - 16
9.9. RESEARCH, MONITORING AND EVALUATION
The research planning monitoring and managing capabilities and facilities wouldbe strengthened.
The proposed nodal institute for Staff Training, Research and Central Information &Documentation Services by restructuring the CSTARI, Calcutta would take upresearch work on Vocational Training.Close co-operation and regular exchange of information with international organisationsand other countries.
0 Research work in the field of vocational training in premier universities and othereducational institutions may be encouraged.The planning, monitoring, evaluation and management capabilities at the Central andState levels would be strengthened by development of appropriate resources andorganisation structure.
9.10. INTERNATIONAL CO-OPERATION
0 The co-operation and exchange of information would be strengthened withinternational agencies and other countries. The cooperation would be extendedin a wide range of activities such as research, curriculum development, use ofmodem training technologies, development of instructional media, testing ofcompetencies, training of staff and retraining of workers etc.
9.11. ENHANCING THE STATUS OF VT
" The status of vocational training in the society would be enhanced .by way ofproviding better employment opportunities, lifetime earning resulting in betterstandard of living.
> National awards to the outstanding craftsmen, teachers and other staff associatedwith Vocational Training.
> Accessibility to enter higher general, technical and professional education andrecognising and giving credits for the competencies possessed by VT graduatesby higher education institutions.
9.12. ROLES AND RESPONSIBILITIES OF VARIOUS STAKEHOLDERS
9.12.1. Central Government:
Central Government would provide policy framework and legislation necessary for thedevelopment of NVTS in consultation with all the major stakeholders;To enforce the provisions of legislation through appropriate agencies;To provide necessary autonomy to the various authorities and agenciesTo channalise intemational cooperation in vocational training through DGE&T.To provide awards and recognition to the companies in order to encourage them to train andre-train their present and future workforce.To provide special facilities and support for the training of women; assist state governmentsin border states with difficult terrains, in basic vocational training.To provide suitable incentives and tax exemptions for encouraging development of traininginfrastructure facilities and research.To undertake research and development activities in the field of Vocational Training.
Annex- 1 L)ratt National Policy on Vocational Iraining Page A - 17
9.12.2. State Governments:
0 State Governments would have many functions similar to those Central Government. Theirrole would be more important in respect of implementation of the programmes.
0 State Governments to be encouraged to set up their own Institutes for training of trainers inconsultation with DGE&T.
9.12.3. Employers
0 Employers would be major stakeholders and partner in the NVTS. They would participatein the planning, organising, implementing and monitoring of the system. They wouldactively participate in the various councils, organisations and institutions set up underNVTS.They would also progressively bear major part of training costs.They would work for creation of learning organisation. They would provide the facilitiesfor the training of future workforce. Big companies may set up their own training centres.They would establish close linkages with the training institutions and would be a majorpartner in the management of training insitutions.They would participate in the identification of training needs/competencies required andways to produce themThey would participate in the testing of the competencies. They would participate in theestimation of future requirement of skill workforce in various areas.
9.12.4. Private proprietary training institutions
It is possible for them to quickly adapt training programmes as per changing needs of theworld of work. They would be allowed to operate various types of training programmes byfollowing the prescribed guidelines.
9.12.5. DGET Institutes
DGET Institutes should act as role models for other institutions and facilitateimplementation of pilot schemes and projects.The institutes may offer programmes for different levels of participants including personsdeputed by other countries.Institutes like CIMI, FTI, CSTARI, NVTI and Apex Hi-tech Institute as also ModelIndustrial Training Institutes to be developed as autonomous institutes of excellence andconform to appropriate ISO-9000 series certification requirements.These institutes would earn revenue through variety of services.
9.12.6. Employees
They would contribute in the development of new training programmes and theirimplementation.Their role would be crucial in on the job training in actual work environment. They wouldsupervise and guide on the job training of trainees.
I They would involve themselves in the institutional training.I They would also give importance to upgrading their own competencies.
9.12. 7. Trainers
0 The trainers would contribute in development of training programmes, curricula, instructionmaterials and test items. They would keep themselves abreast with the technological
Annex- 1 : Dratt National Policy on Vocational I raining Page A - IS
developments in their fields of work. They would strive for achieving higher professionalqualifications and for research/publications relating to VT.
The planners would keep in view all policy guidelines while formulating VT prograrnes,procedures, standards and norms. They would keep themselves abreast with internationaldevelopments in the field of vocational training. They would work in close cooperationwith different stakeholders and other relevant national and international agencies.
The managers would work in close cooperation with different stakeholders. They wouldensure proper implementation of the VT programmes.
9.12.8. State Government Institutions
They would effectively implement VT programmes.They would maintain close liaison with the employers.
9.12.9. Other Central Ministries/Organisations dealing with Vocational Training
They would work in coordination with the proposed National Council.
Annex-Il:L ratt National Policy on Vocational Iraining Page A -19
f ^ '*. w. -t V- p 9A w Z ̂.' va 4 ,
Shri Ajit M. Nimbalkar Chairmani. Additional Secretary, Ministry of Labour
2. Shri S. Krishnan Vice-ChairmanDirector General/Joint Secretary, D.G.E.&T.
Industry representatives/ Experts3. Shri Hari S. Bhartia Member
Vice Chairman and Managing Director, Vam Organic Chemicals Ltd.
4. Shri N. Srinivasan MemberDeputy Director General, Confederation of Indian Industry
5. Shri V.P. Chopra MemberPresident, Fed. of Assn.of Small Scale Industries of India
6. Dr. S.K. Somaiya, MemberChairman, FICCI Education Committee
7. Shri S.K. Bijlani MemberPresident, Magnus Engineers Pvt. Ltd.
8. Shri Sundresh Prasad MemberManaging Trustee, ITC Education Trust
9. Shri M.D. Mahadevan MemberManager, Training & Development, Motor Industries Company Ltd.
10. Shri S.V. Gokhale MemberDivisional Manager - Training, Tata Engineering & Locomotive Co. Ltd.
11. Shri G.K. Aggarwal MemberDirector - HRD, Bharti Telecom Ltd.
Trade Union reDresentatives12. Shri Sukhnandan Singh Member
Vice President, Bhariya Mazdoor Sangh
13. Shri Chandidas Sinha MemberSecretary, Indian National Trade Union Congress
14. Shri Ardhendu Dakshi, MemberGeneral Secretary, Steel Workers' Federation of India, (Rep. Of CITU)State Government reDresentatives
15. Shri A.N. Borah MemberDirector of Employment and Craftsmen Training, Government of Assam
16. Mrs. Sangeeta Singh MemberDirector of Employment and Training, Govermnent of Gujarat
17. Shri M.G. Halappnawar MemberDirector of Employment and Training, Government of Karnataka
18. Shri A.D.Jadav MemberDirector Vocational Education & Training, Government of Maharashtra
19. Shri N.S. Kalsi MemberDirector Tech. Edn. & Industrial Trg., Government of Punjab
Annex- 11: ralt National Policy on Vocational I raming Page A - 2U
D.G.E.&T./ Central Govt's representatives20. Shri G.S. Sethi Member
Director of Training (Project), D.G.E.&T.
21. Shri S.I. Siddiqui MemberDirector of Apprenticeship Training, D.G.E.&T.
22. Shri V.S. Rao MemberDirector of Training, D.G.E.&T.
23. Ms. Adarsh Sarvaria MemberDirector of Training (Women Occupation), D.G.E.&T.
24. Shri S.R. Majumdar MemberDirector, Central Staff Training & Research Institute
25. Shri M. Authiappan MemberDirector, Central Instructional Media Institute
26. Shri S.K. Mishra MemberAdditional Apprenticeship Adviser, Dept. of Education, Ministry of HRD
27. Shri Ashwani Aggarwal Member-ConvenorDeputy Director of Training, D.G.E.&T.
CAashwani\Impact VTP\ICR report\1CRWB-Annexl1.doc
Annex- III: Industry - Institute interaction Page A - 21
Annex - II: Industry - Institute Interaction
A good infrastructure and close interaction between ITIs & Industry is essential for highinternal and external effectiveness of training. To improve the infrastructure facilities, theVocational Training Project (VTP) is being executed since 1989 with financial assistance fromthe World Bank. Steps taken to improve the industry-institute interaction are mentioned below:
1.1 Various steps taken to improve the industry-institute interaction:
Setting up of Institute advisory committees
Signing of Memorandum of Understanding between CII and State Directorates for co-operating with each other in areas of mutual interest.
Partnership between ITIs and companies
r Assessment of the impact of the Vocational training Project and evaluation of the qualityof training in ITIs jointly by Government and Industry
I nitiation of a new concept ofjoint management of ITIs by Government and Industry
1.2 Brief details of above measures:
1.2.1 Setting up of Institute advisory committees
It has been mandatory for each ITI to have an Institute advisory committee havingrepresentatives of Industry apart from other members. Its main function is to advise the ITI on thetrades and curriculum.
1.2.2 Signing of Memorandum of Understanding (MoU Lbetween CIIandState Directorates:
Most of the States in Northern and Southern region have signed MoU with CII for co-operating with each other in areas of mutual interest. Some States (e.g. Punjab, Haryana, H.P.)have signed MoUs with industries at ITI level also.
1.2.3 Partnership between ITIs and companies: (One to one interaction)
In Maharastra, industry has assessed that the Government ITIs have tremendous potentialto meet the technical manpower requirements of industry, particularly after upgradation offacilities under the Vocational Training Project. CII member companies have formed partnershipwith ITIs. Areas of mutual interest identified and an action plan to implement the plans have beenworked out. Several activities related to training of instructors in industry have already started.The partners identified were:
Annex- III: Industry - Institute interaction Page A - 22
Co- pay Cmp 1Bajaj Auto Ltd., Aurangabad 111 Aurangabad
Godraj & Boyce Mfg Co. Ltd., Vikhroli ITI Mulund
Larsen & Toubro Ltd., Powai ITI Ambernath
Siemens Ltd., Mumbai ITI Mumbai
TELCO, Pune ITI Aundh
Voltas Ltd., Thane ITI Thane
1.2.4 Assessment of the impact of the Vocational training Project and evaluation of the qualityof training in ITIsjointly by Government and Industry.
During the process of implementation of various schemes under the Project, importantinputs in the form of equipment, construction of buildings, staff and staff training, have beenprovided to about 565 ITIs. During the final year of implementation of the Project, it was feltnecessary to assess the impact of this Project in qualitative and quantitative terms. In thisconnection, teams comprising representatives from CII, Local Industry & DGET were formed toassess the impact of the project.
The teams visited II ITIs (which received assistance under VTP) in 7 Northern States inthe first phase during September 1997 and 16 ITIs in 4 Western States in the fInd phase duringApril 98. Sequences of events that have taken place, which led to initiating a new concept of jointmanagement of ITIs by Industry and Government is:
Phase-I
> An international conference was jointly organised jointly by DGET and CII in October, 1996on 'Vocational Training- the Road Ahead'. Experts from UK, Germany, Australia, leadingIndian companies and DGET presented the papers. Large number of representatives ofindustries, DGET & State Governments attended the conference. As a follow-up action toimplement the recommendation of conference, it was decided to take up the ITIs upgradedunder VTP with World Bank assistance for assessing the impact of the Project and improvingthe cooperation between ITIs & industry
> Visits to 11 ITIs upgraded under the Vocational Training Project with assistance from theWorld Bank in 7 Northern States by a team comprising representatives of DGET, CII, StateDirectorates and industry took place in September, 97..
> A workshop was jointly organised by CII & DGET in New Delhi in January 1998. Theobjectives of the Workshop were:
1. To review the impact of recent upgradation of various ITIs under the World Bankassistance.
2. To suggest fiture course of action for close co-operation between industry and thetraining institutes.
Annex- III: Industry - Institute interaction Page A -23
3. Recommendations for future action plan i.e. a clear role for Government, Industry andInstitutes.
The Workshop was attended by representatives of Industry, DGET, State & Principals ofITIs. The members of the World Bank review mission for Jan.-Feb,98 also attended theworkshop as observers. The finding of the team, which visited the ITIs upgraded under the VTPwere presented. A major recommendation of the Workshop was joint management of ITIs byGovernment and Industry by formation of Steering Committee and Institute ManagingCommittees for ITMs.
> A Workshop was held on 17.4.98 in Chandigarh to follow-up the recommendations ofworkshop held in Delhi, in particular formation of IMCs. The concerned State Directorsagreed for taking up the proposal on pilot basis in one ITI in each State.
Phase- I
> Visits to 16 ITIs upgraded under the Vocational training Project with assistance from theWorld Bank in 4 Western States by a team comprising representatives of DGET, CII, StateDirectorates and industry in April 98.
3.241 Findings of the Joint team of CII-DGETabout the impact of VTP:
The assessment indicates that there is significant improvement in the infrastructurefacilities, which has led to improvement in theoretical & practical training. The employability ofgraduates from Project ITIs is better than that of Wraduates from other ITIs. This implies that theinternal & external effectiveness of Vocational Training in ITIs has shown improvement with theimplementation of Vocational Training Project. However, there is scope for further improvementby improving the quality of instruction and better utilisation of infrastructure in some States.
1.2.5 Initiation of a new concept of joint management of ITIs by Government and Industry.[Formation of Institute managing Committees (IMCs) and Steering Committees].
The various measures taken for improving the Institute Industry interaction have yieldedmixed results. From the experience gained from these measures, workshops and seminarsorganised after the visit of CII-DGET teams to the Ms, it was felt desirable to have a formalstructure, which clearly defines the roles and responsibilities of Government and Industry. Veryfar reaching decision related to joint management of S ITIs (1 in each Northern State) under apilot project has been taken. Composition, role and responsibilities of Steering committee at thestate level and Instituute Managing Committee at ITI level are given below:
Composition, Role And Responsibilities Of Steering And Institute Managing Committee
COMPOSITION:
STEERING COMMITITEE for the State/ UT - 8 members
1-3 Representatives of Industry -Three4. Representative of CII (Northern Region)5. Director General, DGET6. Secretary in-charge of Vocational Training ................................. Chairman
Annex- III: Industry - Institute interaction Page A -24
7. Principal, ITI (By Rotation)8. Representative of Employees (skilled worker) / Experts
INSTITUTE MANAGING COMMITTEE (IMC) - 10 members
1-4 Representatives from Industry - Four(including Chairman from Industry)
5. Representative of CII (Northern Region)6. Representative from State Directorate dealing with Vocational Training7. Principal of ITI8. One senior faculty member of ITI9. One student representative10. District employment officer11. One representative of DGET (optional, only for pilot project)
ROLE AND RESPONSIBILITIES OF THE INSTITUTE MANAGING COMMITTEE (IMC)
Generation and Utilisation of Finance:> The IMC would be free to generate funds through various projects from industry.> These funds would be available to the IMC for utilisation as decided by them.
Students Selection:> Vocational guidance about the nature of course, job opportunities and career prospects would
be provided to students prior to applying for admission in ITI so that they choose rightcourses.
i Introductory seminars for the fresh students (including visits to industry) may be conductedby industry to create interest and motivate them.
> The IMC may adopt various transparent methods of selection according to the individualneeds of each institute. However, the guidelines prescribed by the NCVT should not beviolated.
Examination Supervision:> Theoretical examinations will be jointly supervised by industry.> Practical examination and evaluation will be supervised jointly by industry and external
examiner.
Facultv Evaluation:> Faculty evaluation will be done by the Steering Committee and their recommendations will
carry weight and recognition.> Faculty Development Form will be designed by IMC which will include criteria for gradation
and development of faculty.
Teaching Aids:Teaching aids like working models, slides, video projections, instruction material in vernacularlanguages, work books, detailed job assignments of the institute will be upgraded under thesupervision of IMC.
Annex- III: Industry - Institute interaction Page A -25
MIS System:Under guidance of the Steering Committee the Managing Committee will introduce an MISSystem for each ITI. CII will provide the necessary inputs for creating such MIS System.
Employment:> The IMC will be responsible for helping students in registration. Before passing out all ITI
students will be registered with (i) local employment exchange (ii) Overseas employment cell(iii) Regional Headquarters of CII (iv) Campus interviews will also be arranged.
> Trainees will be helped by the industry to go in for self-employment through acquisition ofskills relating to interaction with FIs and basic trade and commerce facilities.
Faculty and Staff Development:> IMC will identify the training needs of all faculty and staff members based on Faculty
Development Forms.> Detailed annual and quarterly training calendars, budgets and release of personnel for training
programmes will be planned by IMC including exchange of personnel between industry andinstitute.
Industrial Training:> IMC will prepare guidelines for the industrial training with details of periods of training
including projects for students and faculty. Students of one trade may be released together forindustrial training in order to avoid disruption of training in ITI.
> IMC will also decide about the stipend to be paid to each student and faculty by the industryproviding training.
Transfer for faculty: IMC will be taken into confidence while transferring the faculty from oneinstitute to another.
Equipment Maintenance: The maintenance and replacement of the equipment at the institute willbe supervised by IMC.
Capital Expenditure: IMC will be consulted for spelling out specifications for the procurement ofequipment including accessories and measuring equipment.
Curriculum Revamping:> IMC will be allowed to revamp the curriculum of any trade above the NCVT's norms on the
basis of industry needs.> IMC will be allowed to include new trades and discontinue the obsolete trades by following
simplified procedures to be decided by DGET.
Facult Deputation: Deputation of the faculty from one institute to another will be made at therecommendations of IMC.
Consultancy Rules: The rules for providing consultancy by the ITI will be laid down inconsultation with the Managing Committee.
Indicators for monitoring the performance of IMC:
1. Employment rate within 6 months of completing the course
2. Student output to sanctioned capacity
Annex- 111: Industry - Institute interaction Page A - 26
> Admission rate
' Retention rate
> Pass rate
3. Internship/ on-the-job training per student per year
4. Average number of days of deputation of instructors in industry per year
5. Revenue generated as percentage of operating expenses
6. Donation of machinery and equipment to ITI by industry
7. Other cooperation between ITI and industry
8. Time devoted by experts from industry in conducting classes or other activities in ITI
9. Recommendations made by IMC and their implementation
Role of Steering committee:
1. To decide additional roles and responsibilities of IMC
2. To monitor performance of IMC
3. To encourage industries to actively participate and contribute to the development of
vocational training
4. To coordinate with State Government, DGET, NCVT and industry
1.3 Institute-Industry Interaction in Gujarat: (Quoted as an example)
Industry is involved almost at every important stage of Vocational Training in the state:
> There is Apex standing committee of state level in which Gujarat Chamber ofCommerce & Industry is also member. The committee advises on policy matters likelocation of ITI and trades to be started.
> 9 syllabi have been updated with participation of 11 industries.> 102 Ms are having local advisory committee in which two members are from
industry committee meets regularly in each m.
> Evaluation of practical work of trainee is mostly done by experts from industries.> For theoretical assessment examiners from industry are invited at central assessment
centres.> To keep abreast of latest technology to student & faculty members, guest lecturers
from industry are invited.i In the selection of instructors for ITIs experts from industry are also invited.> Recently ms are directed to accept job work from industries/users to expose trainees
to hard market reality.> Industry visits, participation in technical exhibitions and visit to trade fairs etc. are
other means of interaction with industry.C:\ashwani\Impact-VTP\ICR report\ICRWB-Annex-III_lTlindusrtrynt..doc
Annex-IV: Proied Cost FinancinQ Paae A-27
TABLE 8 A - PROJECT COST
Si. ITEMS Apprisal Estimate (RS. Million) Actual I Latest Estimates(RS. Million)No. Local Cost Foreign Cost Total Local Cost Foreign Cost Total
I - Investment Cost
1 Civil Works & Furniture 459.7 81.1 540.8 635.95 0 635.952 Equipment and Books 2123.8 807.3 2931.1 3316.43 52.27 3368.73 Local Training 150.1 7.9 158 65.75 0 65.754 Overseas Training 4.5 40.7 45.2 0 3.6 3.65 Specialist Services 21.1 23.1 44.2 8.42 136.88 145.3
TOTAL of I 2759.2 960 3719.3 4026.55 192.75 4219.3
ill - Recurrent Costs l
6 Honoraria & Travel 110.7 _110.7 57.63 .. 57.63
7 Incremental Salaries 702.4 0 702.4 745.61 0 745.618 Consumable Materials 126.9 6.7 133.6 58.1 0 58.19 Incremental Maintenance 188.6 9.9 198.5 _____
10 Miscellanious 40.8 2.1 42.9 260.96 0 260.96
TOTAL of 11 1169.4 18.7 1188.1 1122.3 0 1122.3
_ TOTAL OF I & II 3,928.60 978.80 4,907.40 5,148.85 192.75 5,341.60
_ Contingencies 1104.02 265.12 1369.14f 0 0 0
| TOTAL PROJECT COST 5,032.62 1,243.92 6,276.54 5,148.85 192.76 5,341.60
Note
There will be foreign cost component (indirect cost) in other items like Computers, Softwares, CNC controls,bearings, machine components, books, consumables, operations and maintenance etc. However the cost componentis difficult to estimate hence not been indicated.
TABLE 8 B - PROJECT FINANCING
Si. ITEMS Apprisal Estimate (RS. Million) Actual I Latest Estimates(RS. Million)No. Local Cost Foreign Cost Total Local Cost Foreign Cost Total
I IBRD / IDA 2844.08 1243.92 4088 3814.25 140.48 3954.732 Co Financing Institutions 0 0 0 0 0 03 Other Extemal sources 0 0 0 0 0 04 Domestic contribution 2188.54 0 2 188.541 1334.6 52.27 1386.87
TOTAL 5,032.62 1 1,243.92 1 6,276.54 1 5,148.85 I 192.75 5,341.60
Annex- V: Assessment of Uutcome Page A - 28
Annex- V: ASSESSMENT OF OUTCOME
Original Financial Allocation (EFC) vs Expenditure
Component Original EFC Expenditure %ageS.N. allocation upto Dec. 98# utilization
(Rs. in rnillion) (Rs. in million)
1 Equipment 2839.9 3209.00 113.00%
2 Salary 562.8 722.76 128.42%
3 Civil Works 515.0 617.80 119.96%
4 Training & SS 221.3 214.50 96.93%
5 Others 276.8 146.20 52.82%TOTAL 4415.8 * 4910.26 111.20%
- As per report of CPIU (Acctts.) based on SoEs* - Total allocation (upto end of IX Plan with part funding by World Bank upto 31.12.98) was
revised to Rs.576.70 crore by EFC mainly to accommodate additional components i.e.Supply of Modern Equipment to ITIs and MIS].
Financial Allocation vs Expenditure
350-
3001
250-
200-_
150 _
100 _
50--
Equipment Salary Civil Works Training & SS Others
| Original EFC allocation * Expenditure upto June 98
Following table gives break up of percentage of investment envisaged and actually made
for various components.
S.N. Component % of total original Actual % of totalEFC allocation expenditure
I Equipment 64% 65%
2 Salary 13% 15%
3 Civil Works 12% 13%
4 Training & SS 5% 4%
5 Others 6% 3%
Annex- V: Assessment ot Outcome Page A - 29
Time series analysis of % increase in pass rate of ITI trainees
There has been substantial increase in pass rate of ITI trainees. The % increase in pass ratereported by some of the States is indicated in the following chart.
E% increase in pass rate of ITI trainees
W. Bengal 4**;r 3 6
Gujarat PAO I tfi .* 6
TN
HP iW'7 7j, 78
Maharashtra VA?O '40 ..*:; 18
Chandigarh YA ( 3* *. 9
Rajasthan t ZLagit:& 1 5
Kamataka * '-f ht::'gz : .,./ t -8
Punjab g *f. .s.- ,^ >t.> .i :'1 4. 20
Time series analysis of % decrease in drop out rate of ITI trainees
There has been J0% decrease in drop out rate of ITI traineessubstantialdecrease in Punjab 1 3dropout rate ofITI trainees. The Gujarat [1 3% decrease in TN I 13dropout ratereported by some HPof the States is uP g 4indicated in thechart. Maharashtra 1 7
Kamataka 10
Rajasthan I . . . .... t20
Annex- V: Assessment ot Outcome Page A - 30
Impact on employment rate of ITI graduates
Tracer study of ITI graduates
Employment rate of graduates from ITIs upgraded with World Bank assistance is higher
by 71.80% over those from other ITIs.
%/Oage of trainees got employment
Non- World Bank aided ITIs I I
l A
0 10 20 30 40 50
Assessment/ estimation by instructors and principals
Improvement in employability has been significant
Neither agree norAgree ~~~~~~~~~~disagree
_ _ |Stongly d~~~~~~~~~isagree |
|Stronsly~~~~~~~~~~~~~~~ ~tont A gree|
Annex- V Assessment ot Outcome Page A - 31
% of equipment in good working condition|
After Project p92.32
Before Project /,,
0 20 40 60 80 100
Expansion ofAdvanced Vocational Training Scheme
Trainees Target vs Achievement
Acheivement 9 1014
Target ,E,^w' ex't .5 a-e .X., & 17000
0 5000 10000 15000 20000 25000 30000 35000
Impactof VTP on Women's training In Maharashtra
No. of wrTi
% of Women in 21CTS 1 l2
Employrment 42%rate 30%
r°Before VTP MAtter VTP
Annex- V: Assessment of Outcome Page A - 32
Assessment in Terms of the Benefits as Perceived by Those Who Make Use of the Inputs
1- ~~Improvement in infrastructure facilities has been significantNorthern PRglon Western Region
64% 44%
~~~~ ~~14%
32% 42%* Strongly agree * Agree O Others U Strongly Agree U Agree El Others
Improvement in the effectiveness of practicartraining has been significant |
Northern Region Western Region
58% %
14%
34%U Strongly Agree U Agree 0 =Ot=hers U Strongly Agree U Agree El Others]
Annex- V: Assessment of Outcome Page A - 33
Improvement in the effectiveness of theoretical training has been significant
Northem Region Western Region
8% 18%: ~~~~-- - 36eL 33%
56% 49%
E Strongly agree E Agree ElOthers] EStrongly agree E Agree Q Others
page A- 34
Abbreviations
MOE Modernisation of Equipment
EMS Equipment Maintenance System
AVA AV Aids
BTC Basic Training Centre
RIC Related Instruction Centre
INT Introduction of New Trades
AVTS Advanced Vocational Training system
SEC Self Employment Cell
WITI New Women ITI/Wings
WINT New Trades in Existing Trades/Wings
PMU Project Management Units
NVTS National Vocational Training System
DGE&T Directorate General of Employment & Training
CSTARI Central Staff Training & Research Institute
WB World Bank
IDA International Development Agency
ITI Industrial Training Institutes
ATI Advanced Training Institutes
NVTI National Vocational Training Institute
RVTI Regional Vocational Training Institutes
PWD Public Works Department
CPWD Central Public Works Department
GTZ German Agency for Technical Development
MRC Media Resource Centre
MIS Management Information System
EFC Expenditure Finance Committee
SAR Staff Appraisal Report
UT Union Territories
page A- 3)
References
Indian Statistical Institute, Calcutta; 1998: Tracer Study of ITI Graduates in 4 States ofW. Bengal, Gujarat, Tamil Nadu and Delhi.
Implementation Completion Reports! Progress reports! Other related reports from 28States/UTs covered under the Project
ILO, Geneva: World Employment Report 1998-99.
A. Aggarwal, 1998: Analysis & Restructuring of National Vocational Training System(ANTS) in India.
D.G.E.&T., Ministry of Labour (1999): Achievement of Objectives/Assessment ofOutcome of the World Bank assisted Vocational Training Project.
D.G.E.&T., Ministry of Labour (1999): Project Operation Planfor the World Bankassisted Vocational Training Project.
Economic Times (6.1.99) : News item relatedto Employment trends
Ministry of Labour: Expenditure Finance Committee memorandum for JITP (Originaland revised)
Ministry of Labour: Annual Reports 1995-96, 1997-98
Ministry of Labour: Details of Schemes covered under YTP
World Bank: StaffAppraisal Report for the VTP
World Bank: Aide Memoires of review missions.
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