The 38th meeting of the Central Apprenticeship Council (CAC), led by the Minister of State (Independent Charge) for the Ministry of Skill Development and Entrepreneurship (MSDE), recently recommended a significant increase of 36% in the stipend provided under two key apprenticeship schemes: the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS). This step is aimed at making apprenticeship training more attractive and financially viable for both apprentices and employers.
National Apprenticeship Promotion Scheme (NAPS)
Launched on August 19, 2016, the National Apprenticeship Promotion Scheme (NAPS) is a flagship initiative by the Government of India under the Ministry of Skill Development and Entrepreneurship. The primary goal of NAPS is to boost apprenticeship training throughout the country by providing financial support to establishments that engage apprentices.
Key Features
Financial Support: NAPS offers partial stipend reimbursement to organizations that hire apprentices under the Apprentices Act, 1961, encouraging more companies to participate in skill-building efforts.
Wide Eligibility: Both candidates and establishments must register under NAPS to avail the benefits.
Focus on Inclusivity: Special emphasis is placed on encouraging apprenticeships in small and medium enterprises (MSMEs), particularly those situated in underserved regions such as aspirational districts and the North-East.
Skill Development and Employability: NAPS aims to bridge the gap between theoretical education and practical employment by promoting on-the-job experiential training. Apprentices who complete the program receive a certificate that boosts their employability in the job market.
Objectives:
To cultivate a skilled workforce aligned with industry requirements by promoting hands-on training.
To encourage businesses to engage apprentices by subsidizing part of the stipend.
To support candidates who have completed short-term skill development courses by providing them apprenticeship opportunities.
To enhance apprenticeship uptake in smaller and remote establishments to foster inclusive growth.
National Apprenticeship Training Scheme (NATS)
The National Apprenticeship Training Scheme (NATS) is one of India’s premier government programs focused on skilling youth across various trade disciplines through practical, on-the-job training. It operates under the provisions of the Apprentices Act, 1961, which was amended in 1973 to strengthen apprenticeship training.
Key Details:
Target Beneficiaries: Graduate students, diploma holders, and vocational certificate holders are eligible to participate in the scheme.
Training Duration: Apprenticeships under NATS typically last from six months to one year, depending on the trade and training requirements.
Stipend and Reimbursement: Apprentices receive a stipend throughout their training period, with 50% of the amount reimbursed to the employer by the Government of India, providing financial relief to training providers.
Certification: Upon successful completion, apprentices are awarded a Certificate of Proficiency by the government, which is recognized nationwide and can be used to register at employment exchanges as valid work experience.
Additional Insights:
While NATS provides practical experience and formal certification, it does not guarantee employment after training. The focus is on equipping apprentices with skills and work exposure to improve their job prospects in the competitive labor market.
Importance And Impact Of Apprenticeship Schemes
The recent recommendation to increase stipends under NAPS and NATS reflects the government’s commitment to strengthening skill development initiatives and enhancing the attractiveness of apprenticeships. These schemes are instrumental in addressing the skill gap faced by industries and play a critical role in creating a trained and job-ready workforce in India.
By incentivizing both apprentices and employers, the government aims to boost participation in apprenticeship programs, especially in sectors that are vital to the country’s economic growth. Furthermore, focusing on MSMEs and underserved regions ensures inclusive development, contributing to a more equitable distribution of employment opportunities.
These efforts align with India’s broader goals of promoting ‘Skill India’ and achieving sustainable economic progress through robust human capital development.
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