Public Private Partnership

Need For Launch

Out of 1896 Government ITIs in the country (as on 1.1.2007), 500 Government ITIs are being upgraded into Centers of Excellence under a scheme started from 2005-06. In his Budget Speech 2007-08, Hon. Union Finance Minister announced upgradation of remaining 1396 Government ITIs into Center of Excellence through Public Private Partnership.


  • Modernize the Government ITIs.
  • Provide Quality Training through well trained & qualified Instructors.
  • Enhance the employability of the ITI trainees by providing qualitative training.
  • Capacity expansion as per Local Needs.
  • Keep pace with Technological demand of the industry.
  • Expand universe of knowledge & to produce World Class Skilled workforce.
  • To improve the employment outcomes of graduates from the Vocational Training System, by making design and delivery of training more demand responsive.

Salient Features

  • An Industry Partner (IP) is associated with each ITI to lead the process of Upgradation.
  • Institute Management Committee (IMC) is constituted with IP as Chairperson.
  • In IMC four members are nominated by IP, Five by State Govt. & Principal of ITI to be Ex – Officio member secretary.
  • Memorandum of Agreement (MoA) is signed amongst the IP, State & Central Govt.
  • Institute Development Plan (IDP) is prepared by IMC giving Key Performance Indicators(KPIs) & financial requirements for next five years.
  • IMC is registered as a society under Society Registration Act 1860.
  • IMCs are given Financial & Academic Autonomy.
  • IMC will be allowed to determine 20% of the admissions.

Selection of ITI and Industry

For each ITI to be covered under this Scheme, one Industry Partner is associated to lead the process of upgradation in the ITI. The Industry Partner is identified by the State Government in consultation with Industry Associations.

Formation of IMC and its registration as a society

  • An Institute Management Committee (IMC) is constituted/ reconstituted for each selected ITI. The IMC is converted by the State Government into a Society under relevant Societies Registration Act. The IMC registered as a society is entrusted with the responsibility of managing the affairs of the ITI under the Scheme.
  • The IMC is led by the Industry Partner. In the IMC, the members are as follows:
  • Industry Partner or its representative as Chairperson.
  • Four members from local industry to be nominated by the Industry Partner in such a way that the IMC is broad based.
  • Five members nominated by the State Govt.
    • District Employment Officer,
    • One representative of the State Directorate dealing with ITIs,
    • One expert from local academic circles,
    • One senior faculty member,
    • One representative of the students.
  • Principal of the ITI, as ex – officio member secretary of the IMC Society.

Role of Industry Partner

Though financial contribution by the Industry Partner is not a pre – condition to participate in the Scheme, however it is desirable if Industry Partner contributes financially in the upgradation of the ITI. The Industry Partner may contribute machinery, tools and equipment etc. which may be instrumental in furthering the objectives of this Scheme. It also arranges to provide training to the faculty members and on the job training to the students of the ITI.

Role of State Government

The administrative control of the staff of the ITI remains with the State Government and it continues to pay their salaries and other emoluments. The State Government is required to ensure that the sanctioned strength of the instructors in the ITI is always filled up and in no case the vacancies exceed.

10% of the sanctioned strength at any point of time. They are required to ensure that all additional positions required by the ITI are sanctioned and filled up on priority. It has to ensure provision of funds to meet office, administrative and other running expenses of the ITI. The State Government, as the owner of the ITI, continues to regulate admissions and fees except upto 20% of the admissions which are determined by the IMC.

 Monitoring Agencies

  • The Central Government has constituted a National Steering Committee (NSC) with adequate representation from industry, State Governments and other Central Government Departments to act as an Apex body for guiding implementation and monitoring of the Scheme. It has also set up a National Implementation Cell (NIC) at the Central level for management, monitoring and evaluation of the Scheme.
  • To monitor implementation of the Scheme at the State level, the State Government has set up a State Steering Committee (SSC) with adequate representation from the Industry. The SSC is assisted by a State Implementation Cell (SIC) with sufficient staff for management, monitoring and evaluation of the Scheme at State level.

Institute Development Plan

The interest free loan is released to the IMC is directly on the basis of an Institute Development Plan (IDP) prepared by it. The IDP is developed in such a way that it leads to upgradation of the ITI as a whole. Simultaneous upgradation in a particular trade sector may also be taken up. The IDP defines the long term goals of the Institute, the issues and challenges facing the Institute and the strategies for dealing with them. It sets targets for institutional improvement, define Key Performance Indicators and detail the financial requirement with year-wise break up to meet the needs. The IDP is submitted to the State Steering Committee (SSC), which scrutinizes it and forwards to the Central Government for release of funds.

Key Performance Indicators

With the broad objective of improving the quality of training leading to better employability, all the three parties jointly agree and finalise Key Performance Indicators (KPIs) as yearly targets for next five years, for improving the internal as well external efficiency of the ITI against the base line information. These parameters are used to evaluate the success of the scheme during and after the project period. The agreed KPIs signed by the IMC and the State Government are appended to the MoA.

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