The Hindu Business Line : World Bank sanctions $280 m for upgrading ITIs

Coimbatore June 6 The World Bank has sanctioned $280-million credit to help improve the Industrial Training Institutes (ITIs) in the country. The credit package covers 400 ITIs.

In a press release, the bank said that it had approved the credit to help the Government "improve the vocational training system by making the design and delivery of training more demand-responsive".

The project approval comes with a rider as "only States willing to undertake administrative, managerial, and financial reforms will be eligible for financial support under the project".

The release said the `India Vocational Training Improvement Project' was designed to improve quality and relevance of training in 400 eligible ITIs , train instructors and provide incentive funds to reward States for good performance in project implementation. It will also promote systemic reforms and innovations, focussing on activities that lead to enhancement in the overall reach and effectiveness of the vocational training system.

The bank said that the growing economy has seen an increase in demand for skilled workers. But a large number of students could not find jobs upon completing their education. The project would help focus attention on policy reforms leading to significant improvements in the quality of the system.

The World Bank said that only about 30 per cent of graduates from the vocational education and training system landed jobs upon graduation and lack of appropriate technical skills made it tough to find work.

Key constraints

A recent analysis conducted by the Government and the World Bank identified some key constraints to improving the quality of vocational training including a "rigid management system both at the Central and State levels, lack of information on training, nascent involvement of industry in the vocational training system, and lack of incentives to improve performance at the institutional level".

The release said that the Government was keen to take up reforms under which the Central and State Governments would play a key role in policy development, standards setting, financing, and monitoring and evaluation, while engendering greater competitiveness and accountability by institutions.

The bank said that ITIs would be chosen and funded on the merits of their Institutional Development Plans. The establishment of project management structures at the national and State levels will ensure effective implementation and project monitoring, the bank said.

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