Govt wants PSUs to hire more apprentices for service business

Mahendra Nath Pandey-led skills development ministry have urged central public sector enterprises significantly increase number of apprentices in the services sector. The aim is to fill the gap in supply and demand for skilled workforce and meet the aspirations of the Indian youth through gaining on-the-job training and securing better employment opportunities for them.
The ministry is of the view that though most PSUs are hiring apprentices for technical and manufacturing job roles, the number of apprentices in the service sector is lagging behind.

“I strongly urge them to come forward, increase their engagement with apprentices and build their potential to be industry ready,” skills minister Pandey said at a National Seminar organised by MSDE in collaboration with the Standing Conference of Public Enterprises (SCOPE) and Department of Public Enterprises (DPE).

It is estimated that the top 100 PSUs in the country represent 20% of the total manpower and are utilizing 30% of the apprenticeship training potential. These include sectors like defence, aerospace, manufacturing, services, heavy industries & chemicals that engage 66% of the current apprentices engaged in the country.

Skills ministry has brought significant reforms to the apprenticeship rules to drive greater participation in the program. These include raising upper limit for engaging apprentices from 10% to 15%, lowering the size limit of an establishment with mandatory obligation to engage apprentices from 40 to 30, fixed payment of stipend for first year instead of linking it to minimum wages and 10% to 15% hike in stipend for second and third year.

Besides, duration of apprenticeship training for optional trade can now be from 6 months to 36 months while the establishments or industry can get reimbursement up to 25% of the stipend paid to the apprentices under the National Apprenticeship Promotion Scheme.