Government to Launch Manpower Development Scheme

The Centre is proposing to launch a manpower development scheme across the country for training workforce in the textile sector.

The scheme, known as the Neighbourhood Apparel and Textile Training Institutes for Job Assurance (NATIJA), has targeted to train four million anticipated workforce in the sector, said A K Singh, Textiles Secretary.

Rapid automation accompanied by a rising demand for skilled workers has put a premium on training, which in turn is associated ironically with a tight labour market, better working conditions and higher than minimum wages for a subset of the workers in this labour intensive sector, he said.

A massive educational and training infrastructure in the country was the need of the hour to take on the growing and emergent challenges seen due to rapid technological development.

The employment potential of the textile industry was of major significance both for increasing the availability of textiles for meeting demand from the buoyant domestic and International markets and for also meeting broader social objectives of growth, Singh said.

The Scheme of Neighbourhood Apparel & Textiles Training Institutes for Job Assurance (NATIJA)

1. Introduction:

1.1. The Scheme of Neighbourhood Apparel & Textiles Training Institutes for
Job Assurance (NATIJA) has been formulated for establishing a network of
Employment -linked training facilities in basic garment manufacturing
technology. The Scheme is designed to meet the projected demand of 4 million
trained workers required in the garment industry over the next 4-5 years.

1.2. This Training Scheme is to be operated at regional and sub-regional level
across the country on Public Private Partnership (PPP) model. The Scheme
represents a major opportunity for direct job creation, with two of the key cross-cutting
themes of sustainable employment and industry promotion.

1.3. Skilled manpower support generated from the Training Scheme would
help the garment industry to enhance its efficiency, productivity and quality. At
the same time, the training of local area inhabitants in basic garment
manufacturing skills would stimulate local employment.

2. Objectives of the Scheme:

2.1. To set up training facilities at District and Sub-District level across the
country for developing a pool of local trained manpower in basic garment
manufacturing technology.

2.2. To create a trainers' pool by conducting the advance training programmes
at industry cluster level.

2.3. To increase the employment opportunities for the disadvantaged sections
in the regional and local economy. The training to be linked with assured
fixed term employment in the industry for a period of 4-5 months.

2.4. To address the existing and growing trained manpower needs of the
garment industry, in keeping with the expansion in the domestic and
global market.

2.5. To institute a network of systematic training based on the industry needs,
for enhancing the competitiveness of the industry in the globalised economy.

2.6. To address the additional trained manpower needs of the garment
industry in seasons of high/peak demand, through availability of local
trained workforce rendered surplus in the periods of lean agricultural
activity.

2.7. HRD initiative to increase the employability of residents of target areas.

3. Basic Scope of the Scheme:

3.1 The Scheme envisages a three-tier skill development i.e. (i) Basic Sewing
Machine Operators, (ii) Advanced Sewing Machine operators and Pattern
Making & Garment Construction and (iii) Trainers' level training.

3.2 The Basic first level skill development training shall be imparted with the
involvement of District and sub-District level Industries Centres (DICs).
The DICs would provide suitable accommodation for the training center.
The Centre would also be involved in identification of potential. trainee
candidates in consultation with the local industry cluster groups.

3.3. The training center would be strengthened by way renovation, furniture,
fixtures, training hardware etc. through grant from GOI. However, the
complete machinery component for industrial training would be provided
by the Industry. The GOI support will also be available in form of stipend
@ Rs.1000/ - p.m./per trainee during the basic training period.

3.4. The industry and the cluster group, as one of the partners of the Scheme,
will mainly contribute in the form of identification of the trainees,
deployment of trainers, offering assured fixed term employment to the
trained workforce and in bearing the cost of training material, tool-kits,
lunch, refreshments, etc. to the trainees, in addition to providing the
complete machinery component for industrial training.

3.5. The State Government's contribution will mainly be in the form of
providing infra structural facilities, such as existing ITls/ State
Polytechnics/ other existing educational institutions, etc., in addition to
locating sites for new training centres as may be required. Appropriate
Grants will be extended by the concerned State Governments as in the
case of Apparel Training & Design Centres (ATDCs)/ Apparel
International Marts (AIMs). Moreover, identification of trainees in
consultation with the local industry associations, designing the course
curriculum, eligibility criteria for admission to the course(s), recognition
of proficiency certificates/Diplomas to be awarded to the trainees after
successful completion of the training will be coordinated by the State
Government in association with the concerned State or/and Central
authorities, industry associations, etc. Other necessary clearances falling
under the domain of the State authorities will also be coordinated by the
concerned State Governments.

3.6. A tripartite MOU would be signed between Gal, State Government and
the Industry Associations for setting up the training center, creation of
training infrastructure, identification of the trainees, positioning of the
trained trainers, stipend provisions and assured fixed term employment to
the trained manpower. The identification of trainees will be in accordance
with the demand of the local industry and in consultation with the
industry.

3.7. Basic training and first level skill development infrastructur:e may be
created in the existing textile cluster also, and GOl support will be limited
to the provision of training infrastructure (hardware only) and stipend.

3.8. Trainers' training is an area central to the demand of the scheme. The
scheme envisages creation of a huge pool of skilled trainers by way of
involvement of the industry at industry cluster level for which 100% GOl
support will be provided under the Scheme.. However, the honorarium for
the trainers will be on the cost-sharing basis between industry and the
GOI during the training courses in the designated centers outside the
cluster level and on the shop floor.

3.9. The Scheme envisages a minimum guarantee of employment for a period
required by the industry based on seasonal demand of 120 to 150 days in a
year on fixed term as per the provisions of Industrial Disputes Act and
during the period of the employment these workers would be eligible for
all the social and welfare benefits at par with the regular workers of the
industrial units on pro-rata basis.

4. Implementation Structure:

4.1. The Ministry of Textiles would operate the Scheme on PPP model with the
Ministry of Textiles, Industry Associations and State Government agencies
being the partners. The complete machinery component for the training
would be provided by the Industry. The existing ITls/ Polytechnics and
other such institutes could be considered for locating such centres in the
initial phase. Creation of new training centres may be considered
subsequently to meet the demand as and when required.

4.2. The Apparel Export Promotion Council (AEPC), a Section 25 Company
sponsored by the Ministry of Textiles, which has a considerable experience and
expertise in operating ATDCs as well as AIMs for developing trained
manpower for the garment sector, would be the designated agency for the
execution and operation of the projects under the Scheme with regard to
Apparel & Garments. Whereas, the Textile Commissioner, Mumbai would
be responsible for execution and monitoring of the projects relating to
Fibre to Fabrics (including Processing) in association with the Export
Promotion Councils (EPCs), Training Research Associations (TRAs),
Sardar Vallabhbhai Patel Institute of Textile Management (SVPITM), etc.

4.3. The AEPC/ Textile Commissioner, in consultation with the Industry and
State Government agencies, would formulate suitable proposals under the
Scheme for Government's consideration. The AEPC/ Textile
Commissioner would enter into MOU with the State. Government
agencies and Industry Associations, delineating the role and
responsibilities of each in regard to the training facilities for each,project
to be set up under the Scheme.

4.4. The AEPC/ Textile Commissioner would be responsible for mobilizing
the industry contribution in regard to tool-kits, lunch, refreshments, etc. to
the trainees and depositing the same in the common pool. The AEPC/
Textile Commissioner would also be responsible for positioning the
trainers/ master trainers in the selected centers.

4.5. The AEPC/ Textile Commissioner would be vested with the authority to
receive, hold and disburse the grants/moneys and keep proper accounts
of the same.

5. Basic parameters of the training module:

5.1. The indicative details of the basic courses, period of training, number of
batches in the year, number of students per batch and the entry
qualifications is given in the statement at Annex-I. However, the training
modules would have the flexibility of change to suit the industry
requirements at the particular centre.

5.2. Training under the Scheme is to be provided free of cost. The trainees
would also be provided with library, sports, medical facilities, refreshments/lunch and stipends.

5.3. Curriculum: Training Centres would conduct training courses as per the
need of the industry. However, the syllabi of various streams may be
periodically revised to keep pace with changing technological needs in
industry. In designing the curriculum for the scheme, ITI, TRA, ATDC,
University would be associated.

5.4. Focus on practical training: A major part of the training period may be
allotted to practical training and the rest to theoretical training relating to
Trade theory, Workshop, Calculation & Science, etc.

5.5. Managerial Training: Training Centres would also conduct
managerial level training courses as per the need of the industry so as to
provide not only the career progression to the existing supervisory level
staff but to train the existing managers to equip them with the diversified
"know-how". However, the syllabi of various streams may be periodically
revised to keep pace with changing technological needs in industry..

5.6. Broad based modular training: This pattern of training has the advantage
of re-orienting the training modules as per the changing skill requirements of the Industry in lesser time.

5.7. Evaluation of trainees: The trainees after completion of the course would
be required to appear in the Proficiency Test and the successful trainees
awarded a Trade Certificate of Proficiency/Merit duly accredited by the
concerned State and/ or Central authorities.

6. Project Approvals Committee:

6.1. All training centres would be demand driven and shall be established in
the pockets of industry concentration and where there is voluntary
industry partnerships clearly identifying the training need with assured
placement of successful trainees in the enterprise, involvement of State
Level Agencies, sustained availability of trainee/trainers from the local
area, training infrastructure requirement etc.

6.2. The proposals shall be formulated by the AEPC in conjunction with
industry association and State Government authorities and brought before
the Approvals Committee for consideration.

6.3. An Empowered Programme Approvals Committee (EP AC) headed by
Secretary (Textiles) would approve the strategic fit projects. The other
members of the Committee would be as follows:

(i) Adviser (Textiles), Planning Commission.
(ii) AS&FA, Ministry of Textiles
(iii) Joint Secretary, Department of Expenditure, Ministry of Finance
(iv) Joint Secretary, Ministry of Textiles.
(v) Textile Commissioner, Mumbai.
(vi) Secretary General, Apparel Export Promotion Council - Member
Secretary .

7. Funding Pattern and Release of Funds:

7.1. The total cost of the training center shall be financed through a mix of
contributions from the State Government agencies, GOI grant and
Industry as elaborated above.

7.1.1. The GOI assistance per training center would be limited to Rs. 44 lakhs
constituting the cost of renovation/training hardware/ maintenance/
salary & wages and administrative expenses/ stipend to the students
However, in the cases of training at cluster level (refer para 3.7 above) and trainers'
training (refer para 3.8 above), the EPAC would determine the UOl grant
on project-to-project basis having regard to the overall parameters of the
Scheme. The complete machinery component for the training would be
provided by the Industry. The existing ITls/ Polytechnics and other such
institutes are to be considered for locating such centres.

7.2. The GOI grant under the scheme shall be released to the AEPC/ Textile
Commissioner immediately after approval of the project by the EPAC.
However, before the release of grant, it would be ensured that the AEPC/
Textile Commissioner have deposited the requisite contributions from the
Industry in the common pool.

7.3. It would be open for the Government of India to cause physical
verification of the implementation of the project and other such enquiries
as deemed fit.

7.4. Payment and all expenditure under the project will be subject to audit by
the Comptroller and Auditor of India.

7.5. Secretary General, AEPC/ Textile Commissioner, Mumbai shall be l
responsible for the overall execution of the project and to ensure that the expenditure is incurred strictly in accordance with the Government rules, ,procedures and within the proprieties governing expenditure in the Government.

8. Project Monitoring and Evaluation:

A Project Implementation Committee to be constituted by the AEPC/
Textile Commissioner to oversee implementation of projects shall also
periodically monitor the performance/output of each approved project. The
progress shall be apprised to Project Approvals Committee/Ministry of Textiles
periodically. The Project Approvals Committee would device a suitable
monitoring and evaluation system for this purpose.

The Implementation Structure

The Ministry of Textiles would operate the Scheme on PPP model with the Ministry of Textiles, Industry Associations and State Government agencies being the partners. The complete machinery component for the training would be provided by the Industry. .
}
2. The Apparel Export Promotion Council (AEPC), a Section 25 Company sponsored by Ministry of Textiles, which has considerable experience and expertise in operating Apparel Training & Design Centres (ATDCs) and Apparel International Marts (AIMs) for developing trained manpower for the garment sector, would be the designated agency for the execution and operation of the projects under the Scheme with regard to Apparel & Garments.

2.2. Whereas, the Textiles Commissioner, Mumbai would be responsible for execution and monitoring of the projects relating to Fibre to Fabrics (including Processing).

3. Constitution of Committees: There shall be committees at the National! State/ District or local levels to coordinate various activities for implementation of the projects under the Scheme.

3.1. Empowered Projects Approval Committee (EPAC): A Committee shall be constituted at the Apex level in the Ministry of Textiles, Government of India, to be called "Empowered Projects Apprbval Committee (EPAC)". The Committee shall be headed by .the Secretary (Textiles) and shall comprise following members:

(i) Adviser (Textiles), Planning Commission
(ii) AS & FA, Ministry of Textiles
(iii) Joint Secretary, Ministry of Textiles
(iv) Textiles Commissioner, Mumbai
(v) Joint Secretary, Department of Expenditure
(vi) Joint Secretary, Ministry of Human Resource Development
(vii) Joint Secretary, Ministry of Rural Development
(viii) Director General, DGET, Ministry of Labour
(ix) Chief (Joint Secretary), NMCC
(x) Director (NMCC), Ministry of Textiles - Member Secretary
(xi) National Textiles Industry Associations - 3 Members
(xii) Secretary General, AEPC

The EPAC shall formulate detailed guidelines and approve the strategic fit projects. It shall oversee the execution of the various projects under the Scheme and shall monitor and direct inspection of the projects from time to time.

3.2 State Coordinating and Monitoring Committee (SCMC): There shall be a State Level Committee to be called, "State Coordinating and Monitoring. Committee (SCMC)". The Committee shall be headed by the Chief Secretary of the concerned State and shall comprise following members:

(i) Secretary, Industry
(ii) Secretary, Labour & Employment
(iii) Secretary, Education
(iv) Secretary, Revenue
(v) Secretary, Rural Development
(vi) Director, Employment
(vii) Export Promotion Councils - 3 Members
(viii) Industry associations - 3 Members
(ix) Secretary General, AEPC or co-opted officer, Member Secretary or the Additional Textiles Commissioner - as the case may be.

The State level Committee shall coordinate the various activities relating to execution of the projects under the Scheme. It shall focus on using the existing infrastructure available in the State.

3.3. District Coordinating and Monitoring Committee (DCMC):

There shall be a Committee at the District level headed by the DM/Collector or the Chief Development Officer and shall comprise following members:

(i) Project Officer, DRDA / DIC
(ii) District Education Officer
(iii) District Labour & Employment Qfficer
(iv) Principal, ITI/ and/ or local educational institution(s)
(v) Industry association
(vi) Export Promotion Council (vii) Principal, ATDC

4. Role and Responsibilities of AEPC/ Office of the Textiles Commissioner:

4.1. The Council/ Textiles Commissioner, in consultation with the Industry and State Government agencies, would formulate suitable proposals under the Scheme for EPAC's consideration. It would enter into MOU with the State Government agencies and Industry Associations, delineating the role and responsibilities of each in regard to the training facilities set up and. each project to be set up under the Scheme.

4.2. The Council/ Textiles Commissioner would be responsible for mobilizing the industry contribution in regard to tool-kits, lunch, refreshments and matching stipends to the trainees and depositing the same in the common pool. The Council/ Textiles Commissioner would also be responsible for positioning the trainers in the selected centers.

4.3. The Council/ Textiles Commissioner would be vested with the authority to receive, hold and disburse the grants/moneys and keep proper accounts of the same.

4.4. Website development - A portal shall be launched which shall have all information pertaining to the Scheme for the relevant interest groups and others.

4.5. Assessment of Workforce requirement in Industry - The enterprises located in the industry cluster/district shall report manpower requirement through the industry association or directly to the AEPC or the Textiles Commissioner.

4.6. Publicity - A publicity campaign may be launched from time to time to disseminate information on the Scheme to the public. Involvement of Gram Panchayats, etc. may also be actively sought in this regard.

4.7. Selection of Training Institutes/Venue - The training centres shall be located at places of garment textile unit concentrations so that there is proper coordination and dovetailing with the demands of the industry. The existing ITIs/ Polytechnics and other such private institutes are to be considered for locating such centres.

All training centres would be demand driven and shall be established in the pockets of industry concentration.

The proposals shall be formulated by the AEPC/ Textiles Commissioner in conjunction with industry associations and the State Government authorities and brought before the Approvals Committee for consideration.

• The total cost of the training center shall be financed through a mix of contributions from the State Government agencies, GOl grant and Industry contributions.

4.8. Identification/ Selection of Trainees - There shall be an authority, such as local employment exchange, which shall register the people for skill training. The trainees may be selected on the basis of the basic qualification required for the course as well as some standards of physical fitness. Industry may also sponsor list of candidates for training. The local Government Health Centre may -issue fitness certificates upon examination of trainees selected for the purpose.

4.9. Training Module :

4.9.1. Curriculum Design - The course shall be designed to match the industry needs and shall be reviewed from time to time to keep pace with the changing technological needs. A Management Committee comprising the Heads of ITI/ TRA/ ATDC SVPITMI NIFT/ Industry association may be set up to design the course contents for the Scheme.

4.9.2. Focus on practical training: A major part of the training period may be allotted to practical training and the rest to theoretical training - relating to Trade theory, Workshop, Calculation, etc.

4.10. Training Aids - The training under the Scheme-is to be provided free of cost. The trainees would also be provided with such facilities, as library, sports, medical, refreshments/lunch, etc. All training aids, including the facilities for training shall be provided by the industry.

4.11. Stipend to the Trainees - The trainees shall be paid due stipend @ Rs.1000/- p.m. during the course of training. The continuance of payment of stipend to a trainee shall, however, be subject to the work and conduct of the trainee being satisfactory.

4.12. Evaluation of Trainees - The trainees after completion of the training period would be required to appear in the Proficiency Test and successful trainees awarded a Certificate of Proficiency/Merit, duly accredited by the concerned State Government / Central authorities.

4.13. Job Guarantee - The employer shall enter into a contract with the local authority to the effect that on successful completion of the training, the trainee shall be absorbed in the organization and shall be guaranteed minimum period of employability. All the benefits to the trainee shall commensurate as per the extant provisions in the industry.

4.14. Up gradation of Skill - The employees may further upgrade their skills from time to time to improve career opportunity. During such training, they shall be paid all the benefits as in regular employ.

4.15. Trainers' Pool Development: There shall be a Committee under the Chairmanship of Joint Secretary, Ministry of Textiles for identification of Trainers' Pool in tandem with the industry associations as under:

(i) DG, DGET, Ministry of Labour
(ii) DG, NIFf
(iii) Director, SVPITM
(iv) Director, SASMIRA
(v) Industry associations - 3 Members
(vi) Secretary General, AEPC/ Textiles Commissioner - Member Secretary

• A Central Trainers' Pool shall be developed to cater to the need of the. training institutions.
• The Council/ Textiles Commissioner would be positioning the trainers in the selected centers.
• The trainers shall be derived from the textiles related institutions, ITIs, ATDCs, NIFT etc.
• The trainers shall be imparted refresher courses from time to time to hone up their teaching skills at par with the changing industry needs.

• The AEPC/ Textiles Commissioner shall be the designated agency for execution and operation of the projects and would be vested with the authority to receive, hold and disburse the grants/ moneys and keep proper accounts of the same.
• The GOl grant under the scheme shall be released to the AEPC/ Textiles Commissioner immediately after approval of the project by the EPAC. However, before the release of grant, it would be ensured that the AEPC/ Textiles Commissioner have deposited the requisite contributions from the Industry in the common pool.
• The AEPC/ Textiles Commissioner would be responsible for mobilizing the industry contribution in regard to tool-kits, lunch, refreshments, etc. and depositing the same in the common pool.
• The total cost of the training center shall be financed through a mix of contributions from the State Government agencies, GOI grant and Industry contributions.
• AEPC/ Textiles Commissioner shall be responsible for the overall execution of the project and to ensure that the expenditure is incurred strictly in accordance with the Government rules, procedures and within the proprieties governing expenditure in the Government.
• The- GOI assistance per training center would be limited to Rs.3.72crore constituting the capital and recurring costs/ stipend to the students. However, in the cases of training at cluster level and trainers' training, the Empowered Programme Approvals Committee (EPAC) would determine the UOI grant on project-to- project basis having regard to the overall parameters of the Scheme.
• The complete machinery component for the training would. be provided by the Industry. The existing ITls/ Polytechnics and other such institutes are to be considered for locating such centres.
• It would be open for the Government of India to cause physical verification of the implementation of the proj'ect and other such enquiries as deemed fit.
• Payment and all expenditure under the project will be subject to audit by the Comptroller and Auditor of India.

6. Prime activities:

District Coordinating Authority shall -

• Identify trainees to be trained in the facility;
• Seek a list of sponsored candidates from the Industry, if any;
• Final selection of trainees;
• Certify the conduct of the programme;
• Certify the presence of trainees in the programme;
• Send periodical reports to the apex body.

State Coordinating Committee shall -

• Coordinate the activities of the District Committees in the State;
• Maintain a web site indicating the details of the persons trained sector-wise;
• Update the web site periodically and make it accessible to all.

7. Industry Coordination: The coordination with the industry shall involve following activities:

(a) Syllabi Construction: The course curriculum shall be constructed as per the need of the industry so as to keep pace with the changing technological needs globally. In designing the curriculum for the scheme, ITI, TRA, A TDC, DGE&T, NIFT and National Level Garment Manufacturing Associations may be associated for the purpose. A Management Committee comprising officials from these institutions / industry shall be set up for the purpose at each centre.

(b) Training machinery: The training machinery/ material shall be made available by the industry at each training centre.

(c) Requirement of Labour: The industry shall indicate the requirement of trained manpower well in time directly to the AEPCI Textiles Commissioner or through the Association(s).

(d) Job Guarantee Document: The industry shall have to furnish job guarantee document in respect of skilled manpower requirement so as to ensure minimum period of employability and to absorb them in the industry after they have completed the training course and pass out successfully.

8. Project Monitoring and Evaluation:

A Project Implementation Committee (PIC) to be constituted by the AEPC / Textiles Commissioner to oversee implementation of projects shall also periodically monitor the performance/output of each approved project. The progress shall be appraised and intimated to Project Approvals Committee/Ministry of Textiles periodically. The Project Approvals Committee would device a suitable monitoring and evaluation system for this purpose.

Pre-Budget Memorandum Submitted to Union Finance Minister by TEA

- Amend labour laws to increase working hours from 48 hours to 60 hours a week

- Provide 3 per cent compensation against State levies, transaction cost

The Tirupur Exporters’ Association has asked the Union Government to extend the National Rural Employment Guarantee Scheme to garment sector also. This is one of the demands of the association’s pre-budget memorandum submitted to the Union Finance Minister, P.Chidambaran, by the association. The scheme until has now been extended to all the districts in the country promising 100 days of employment at Rs. 60 a day.

But the scheme could be extended to seasonal business like garment sector.
They could be provided employment even for 280 days with Rs. 70 as wage a day so that the Government need not have to spend anything on the scheme once extended to garment sector.

TEA has promised that garment exporters will give a guarantee letter to the District Collector that they will employ a minimum of 50 workers each and 50 per cent of them will be women from rural areas. Thus employment could be provided to six million people in garment sector.

The association has demanded amendment to labour laws to increase the working hours a week from 48 hours to 60 hours with necessary increment in wages. This is required for the compliance sought by the foreign buyers and moreover already other countries have implemented this.

The Association has urged Centre to extend Rs. 500 crore as grant for executing the marine discharge project, which is expected to cost Rs. 1,000 crore. According to TEA, this alone can be the permanent solution for the discharge of dye effluents. Implementation of this project will benefit the whole textile belt of Tirupur, Perundurai, Erode, Pallipalayam, and Karur.

Service Tax

TEA has sought total exemption from the Service Tax (now 12.36 per cent) for the exporters as the Finance Minister himself has said that exporters cannot export taxes. Besides, service tax on rental buildings should be removed.

As the current duty drawback rate of 11 per cent given to knitwear garment exporters is insufficient to offset the 15 per cent appreciation of rupee against dollar, he has sought an enhancement of at least 3 per cent of same.

Hedging cost

The association has sought compensation for the “hedging cost,” which is an additional burden to exporters. Or a dual exchange rate could be introduced by which Rs. 42 a dollar could be fixed for exporters for one year.

Similarly, compensation should be given to the tune of 3 per cent to the exporters against the State levies such as octroi, other State taxes and transaction cost.
The association, which points out that the Modified Technology Upgradation Fund Scheme (TUFS) has not covered April 1, 2007 to October 31, 2007 period, has demanded that the investment made during this period should be given the 10 per cent capital subsidy in addition to 5 per cent interest reimbursement.

Loans