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Government provides financial incentives to employers to engage apprentices under National Apprenticeship Promotion Scheme

By   /  September 1, 2016  /  Comments Off on Government provides financial incentives to employers to engage apprentices under National Apprenticeship Promotion Scheme

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New Delhi: National Apprenticeship Promotion Scheme, one of the biggest game changers in the skill landscape in India, has been notified by the Government of India today (01 September 2016). It is for the first time a scheme has been notified to offer financial incentives to employers to engage apprentices.  This move is expected to help government create job opportunities for majority of the 12 million people who enter the workforce every year.

Under the scheme, 25% of the prescribed stipend payable to an apprentice would be reimbursed to the employers directly by the Government of India. The scheme also supports basic training, which is an essential component of apprenticeship training by sharing of basic training cost with basic training providers in respect of apprentices who come directly to apprenticeship without any formal trade training (fresher apprentices).

The Scheme has an outlay of Rs. 10,000 crore with a target of 50 Lakh apprentices to be trained by 2019-20. Apprenticeship Training is considered to be one of the most efficient ways to develop skilled manpower for the country. It provides for an industry led, practice oriented, effective and efficient mode of formal training. The National Policy of Skill Development and Entrepreneurship, 2015 launched by Prime Minister Mr Narendra Modi focuses on apprenticeship as one of the key components for creating skilled manpower in India. The policy proposes to work pro-actively with the industry including MSME to facilitate tenfold increase opportunities in the country by 2020.

As per the press release issued by the Union Government, the government has opened a dedicated online portal for ease of administering. All transactions including registration by employers, apprentices, registration of contract and payment to employers will be made as online mode. Eligible employers shall engage apprentices in a band of 2.5% to 10% of the total strength of the establishment. Employers need to register on the apprenticeship portal and must have TIN/TAN and any one of EPFO/ESIC/LIN. Employers are invited to register on the apprenticeship portal to avail benefits under the scheme.

Further, the government is planning to appoint Brand Ambassadors for states and for local industrial clusters to act as facilitators and promoters to promote apprenticeship training.

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