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Expert group keen to fill skill shortages in small businesses

Updated: Apr 12, 2013 03:59:36pm
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New Delhi, Apr 12 (KNN) The Assistance to Training Institutions (ATI) scheme by Ministry of Micro, Small and Medium Enterprises (MSME) can contribute towards capacity building in the small scale sector in a country where approximately 83 million people are either unemployed or underemployed.

“ATI scheme assumes a lot of national importance as it would contribute towards rapid escalation of training and skill development in the country,” said a report on evaluation of the ongoing ATI scheme of Ministry of MSME.  

It could fill the gap of training and skill development in sectors such as Textiles, Handicraft, Information Technology, Food Processing, Pharmaceuticals, Auto Components, Gems and Jewellery, it added, considering the large number of people in the country who are either unemployable or inadequately skilled at present.

Some of the major findings of the report on skill gaps and training for identified sectors such as textiles were the absence of motor winding technicians, garment manufacturing operators (automatic stitching, computerized fabric knitting, computerized embroidery, computerized woven labels etc.) and mechanics for repair and maintenance of machines.

Similarly for the handicrafts sector, marketing skill development particularly related to exports, standardization of products, manufacturing techniques and quality control were important.

While manpower was required for creating innovative designs, new and diversified products (e.g. jute products such as geo-textiles; woven products from fibres of banana, coir etc.); it was also important to introduce technicians with simple and efficient machines to smoothen operations, enhance productivity and reduce cost of production.

The report also identified others sectors for training and skill development such as information technology, food processing, pharmaceuticals, auto components, and gems and jewellery through research.

During the 11th five year plan under Enterprise Development Institute (EDI) and ATI scheme, approximately Rs 5.57 crore (April 1, 2007 – March 31, 2011) capital grant was provided to 12 state-sponsored EDIs for setting up and upgrading their training infrastructure.

Further, the Prime Minister’s national mission on skill development has a target for creation of a pool of 500 million skilled people by 2022.  In order to achieve it, the report suggests ways and means to promote entrepreneurial culture amongst the youth and unemployed people in order to fill the skill gap existing in the different sectors of the industries.

The report suggests modifications to be carried out in the ATI scheme.  Accordingly, EDIs are required to file their program schedule for approval and sanction to Ministry of MSME for the next financial year; and timely approval and sanction of funds was necessary so as to not delay the training program schedule.

It was recommended that in case of three National level EDIs under the Ministry of MSME, National Small Industries Corporation (NSIC) Ltd. and all states and UT sponsored assisted EDIs should be provided at least 40 per cent of their total sanctioned amount as advance, enabling them to meet a part of their expenses and balance on successful completion of training.  

Other recommendations include Government nominated representatives should try and attend maximum board meetings during development of the state and UT sponsored EDIs, and their subsequent functioning, so that their expertise and guidance is available to the EDIs, for proper maintenance of records, monitoring of training activities and performance.

“Videoconferencing, web based training should be introduced in the scheme to cover multiple locations, enhance outreach particularly in rural areas and provide effective monitoring mechanism with respect to training programs being conducted from time to time,” the report has suggested.

The cost for setting up requisite systems would be supported by the Ministry of MSME under ATI Scheme as capital grant towards teaching aids and equipment as per the report.
In addition, EDIs and training institutions were recommended to advertise on the local cable network to create greater awareness about the scheme among the public; as the prime method of identification of trainees adopted by majority of the EDIs and training institutions at present was through release of advertisements in newspapers.

Entrepreneurship motivation among unemployed youths could be enhanced by a panel of eminent successful entrepreneurs who could interact with prospective entrepreneurs to share their success stories either face to face or through video conferencing.

Also, training programmes should be fine-tuned based on local needs in different regions and states of the country as suggested by EDIs.

Recently, the Ministry of MSME had mandated that 20 per cent of all purchases by Central and State Government Ministries and Departments and Public Sector Units (PSUs) should be made from registered MSMEs, out of which four per cent should be made from schedule caste and tribes enterprises.

It would certainly create an excellent opportunity for unemployed youths and those belonging to backward classes to obtain training and set up their own enterprises; thereby resulting in their socio-economic development. (KNN)

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