1. National Apprenticeship Promotion Scheme takes off

National Apprenticeship Promotion Scheme takes off

Targeting to provide apprenticeship training to 50 lakh by 2020, the government has notified the National Apprenticeship Promotion Scheme with an outlay of Rs 10,000 crore, and will offer financial incentives to employers and monthly stipend of up to Rs 1,500 to apprentices.

By: | New Delhi | Published: September 1, 2016 6:00 PM

Targeting to provide apprenticeship training to 50 lakh by 2020, the government has notified the National Apprenticeship Promotion Scheme with an outlay of Rs 10,000 crore, and will offer financial incentives to employers and monthly stipend of up to Rs 1,500 to apprentices.

Under the scheme, 25 per cent of the prescribed stipend payable to an apprentice would be reimbursed to the employers directly by the Centre.

Moreover, brand ambassadors will be appointed for the states and for local industrial clusters to act as facilitators and promoters.

“They will be paid Rs 2,500 per day whenever they are called for any workshops/seminar/meeting. They would also be reimbursed travel expenses,” Ministry of Skill Development and Entrepreneurship said.

The main objective of the scheme is to promote apprenticeship training and to increase the engagement of apprentices from the present 2.3 lakh to 50 lakh by 2020.

The scheme also supports basic training, which is an essential component of apprenticeship training by sharing of basic training cost with basic training providers in respect of apprentices who come directly to apprenticeship without any formal trade training (fresher apprentices).

The government will also share a maximum Rs 7,500 per fresher apprentice as cost of basic training with basic training providers.

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

The government has also instituted a framework for monitoring under the scheme. Therefore, it is expected that 5 per cent to 10 per cent of the total beneficiary establishments under the scheme would be subject to actual physical verification every year.

Eligible employers shall engage apprentices in a band of 2.5 per cent to 10 per cent of the total strength of the establishment. Employers need to register on apprenticeship portal and must have TIN/TAN and any one of EPFO/ESIC/LIN.

Payment of full rate of prescribed stipend, including the government’s share shall be paid to apprentices by the establishment through the Aadhaar linked bank accounts of apprentices. For this purpose, the employers are required to seek bank details from the apprentices.

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