The Federation of Indian Chambers of Commerce and Industry (FICCI) and IL&FS Education and Technology Services (IETS) have entered into an agreement to adopt, manage and operate industrial training institutes (ITIs) and vocational educational institutes with a fiscal commitment that could go up to Rs 1,000 crore over the next three years.
"We have already identified 42 among the list of 100 sent out by the government. At present, there are about 1,900 ITIs run by both the central and state governments. Besides, there are more than 3,000 vocational training institutes run by private firms. Over the next three years, our target is to help turn around 500 such institutes based on a sound revenue model," FICCI Secretary-General Amit Mitra said.
In this year's budget, the government has offered a non-interest bearing loan of up to Rs 2.5 crore to every ITI adopted by the industry to turn it around. “In addition, through our revenue model and the agreement with IETS, the industry would be spending about Rs 2 crore per institute, raising the level of financial involvement to Rs 1,000 crore over the next three years,” said Mitra.
IETS Chief Executive Officer Pradeep Singh said each institute would be governed by a 11-member managing body headed by a leading industrialist of the region.
According to the agreement, IETS would prepare and implement a business plan suited for the roll-out of a successful programme. Apart from the government funds and initial fund from the corporates, these institutes would also attract placement fee and sponsorship fee for training programmes from companies.
Besides, Singh said the revenue model was being designed in such a manner that companies would also be organising internal training programmes in the institutes. Mitra said the programme would be spearheaded by several leading industrialists, including Ashwin Dai of Asian Paints, K K Modi of Godfrey Phillips, former FICCI President Saroj Poddar and present FICCI President and Wockhardt Chairman Habil Khorakiwala.