Private Training Providers(PTPs)

Government of India has launched the National Skill Development Mission to develop a Vocational Training System in the country that provides quality skilled manpower to the industry, bridging the gap between its demand and supply. The Mission aims to upgrade the existing system of vocational training by strengthening craftsman training, apprenticeship training and development of new skill sets with active participation of industry.

In pursuance of aims and objectives of the Mission, the Government of India has decided to set up new ITIs in uncovered blocks, Skill Development Centres in cluster of villages in far and distant areas and new Polytechnics in uncovered districts with central financial assistance. The Ministry of Labour and Employment, Government of India has also started a new centrally funded scheme called Skill Development Initiative for imparting skills to those segments of our population who are left out of formal vocational training system. In addition, various Ministries/Departments of Government of India have identified and empanelled a number of Private Training Providers (PTPs) to accelerate the process of Vocational Training and Skill Development. National Skill Development Corporation (NSDC) has also been set up under the aegis of Planning Commission of India.

In Punjab, Skill Development and Vocational Training are being strengthened on the lines envisaged by Government of India under the National Skill Development Mission. State Industrial Training Department is not only revamping its existing ITIs under two major schemes namely Upgradation of existing ITIs into Centres of Excellence and the World Bank Assisted Vocational Training Improvement Programme, but it also proposes to set up 43 new ITIs in uncovered blocks under PPP mode with assistance from the Government of India. 7 Polytechnics are being set up in uncovered districts, with central assistance of Rs.86.10 crore. Punjab State Skill Development Mission has also been set up under the chairmanship of Chief Minister, Punjab.

State Industrial Training Department is also engaging Private Training Providers (PTPs) by declaring them Vocational Training Providers (VTPs) under the Skill Development Initiative (SDI). As of now, 255 VTPs have been registered by the State Industrial Training Department, which include 108 Govt. ITIs, 54 Polytechnics & Engineering Colleges and 92 Private Vocational Training Providers. However, a number of Private Training Providers (PTPs) who are empanelled by various Ministries/Departments of Government of India have also approached the State Industrial Training Department for skill development and vocational training in Punjab. These training providers have varying strengths and experience in different trades and disciplines, which they intend to pursue for vocational training and skill development. The terms and conditions of their agreement with different ministries/departments of the Government of India also vary. Some of these Private Training Providers prefer to work with and through the Government institutes, whereas others prefer to work outside the government.

State Industrial Training Department intends to engage these PTPs to further expand and strengthen its efforts for promotion and development of vocational training and skill development in the State. In order to ensure proper and effective participation of PTPs in State's endeavour for skill development and vocational training, the Department has worked out its guidelines as elaborated here-in-after.

The partnership with Private Training Providers (PTPs) for vocational training and skill development would be aimed:-

• To expand and strengthen training and skill development facilities in areas/trades in which existing government institutes do not have requisite infrastructure and trainers;
• To complement and supplement existing resources in areas/trades already being run in various Industrial Training Institutes and Polytechnics of the State;
• To ensure optimal utilization of infrastructure and staff of existing ITIs and Polytechnics; and
• To enhance capacity of existing institutes of vocational training and technical education.

The partnership with PTPs is expected to help in achieving the following outcomes:-

• Provision of training facilities in Skill sets as per demand of the industry in Punjab and elsewhere;
• Optimum utilization of time, space, building and equipment of existing institutes of technical education and vocational training in Punjab;
• Enhanced diverse opportunities of placement for trainees in industry;
• Enrichment and upgradation of professional experience and knowledge of teachers and instructors in technical education and vocational training;
• Maximize availability of skilled labour with effective participation of industry; and
• Improvement in training and skill development infrastructure particularly equipment and machinery in the State.

The Private Training Providers (PTPs) selected by the Department should meet the following requirements:

• PTP should have a minimum experience of three years in identified area of vocational training/ skill development;
• PTP should either be eligible to be a VTP or to be empanelled with any of the Departments or Ministries of the Government of India;
• PTP should have an established and stated policy of internal quality management
• PTP should follow a pre-determined and defined policy for testing and evaluation;
• PTP should have requisite output of pass-outs and placements in the last three years, which should be equivalent to the volume of trainees that PTP intends to train in the next three years; and

The partnership with PTPs would be solicited by the State Industrial Training Institutes and Polytechnics for the following:

• For all SDI courses/programmes, where the institute does not have resources like trainers, equipment and finances. The institute should at least be able to provide accommodation/ space within its campus or otherwise.
• Any course demanded by local industry where there is a possibility of assured placement and the institute does not have resources and infrastructure to run such a course. Such a course can then be run with private partnership under SCVT with prior approval of the Directorate.
• Any course or trade for which there is a demand by the industry but the existing Industrial Training Institutes and Polytechnics do not have requisite arrangement. However, the PTP is not only willing to make necessary arrangement but is also willing to ensure national and international certification. Such a course can also be run under SCVT with prior approval of the Directorate.
• In all the above situations, it would be mandatory for the institute to seek approval of its Institutional Management Committee before finalizing any partnership or engagement with a Private Training Provider (PTP). However, if a situation so warrants, the Directorate can also direct the institute to introduce and run some special courses/ trades keeping in view the demand of skilled manpower for any specific industry.

• If an Institution Management Committee (IMC) or the State Technical Education and Industrial Training Department takes initiative to start some specified courses, then eligible PTPs would be selected for partnership with identified ITIs or Polytechnics through open bidding on rate of sharing of revenue, minimum of which is prescribed in para 16 of these guidelines.
• In case a PTP is empanelled or it has an agreement for skill development and training with a Ministry or a Department of Government of India or in case PTP is not empanelled but the course cost is funded by some other means like sponsorship from industry with zero cost to the trainees, the same can be selected in keeping with these guidelines provided there are no other claimants or offers for the proposed training programme/ course. In case there are more than one PTPs empanelled or having agreement with any Ministry or Department of Government of India willing to impart training/ skills, the PTP would in such a situation be selected on the basis of limited bidding between such PTPs.
• In all cases, the PTPs would need prior approval of the Institution Management Committees (IMCs), which would need to keep these guidelines in view for their selection and approval.

The role of government institute in cases where it is an active partner would be as following:-

• Admission and mobilization of trainees and students ;
• Provision of building along with furniture for classrooms, electricity and water;
• As far as possible, availability and use of equipment and machinery along with the attendant and Instructor( Trainer) and they will be paid at par with the other trainers hired or provided by PTP;
• Collection of Training cost i.e. fee etc.;
• Day-to-day administration of the programme; and
• Monitoring and evaluation of the programme.

The role of PTP in cases where the government institute is an active partner would be as following:

• Arrange and provide qualified trainers/ instructors;
• Provide training material for imparting training for prescribed number of hours;
• Provide course curriculum and design along with latest content in hard and soft form, without compromising on minimum requirements of DGET, if any;
• Provide teaching learning aids including audio visuals etc to ensure imparting of training/ skills in best possible manner;
• Ensure placement for a minimum of 70 percent pass-outs;
• Provide additional equipment, if any required;
• Testing and evaluation, if third party is not involved. If a third party testing and evaluation is mandated, then such an arrangement would be decided jointly; and
• Certification in case third party is not involved. However, if third party certification is mandated, then such an arrangement would be decided jointly.

The role of government institute in cases where it is a passive partner would be as per following:

• Mobilization of trainees/ students;
• Provision of building, electricity and water;
• Collection of Training cost i.e. fee etc.; and
• Overall monitoring and review of the programme.

The role of PTP in cases where the government institute is a passive partner would be as per following:

• Admission of trainees/ students;
• Provision of qualified trainers/ instructors;
• Provision of training material for imparting training for prescribed number of hours;
• Provision of course curriculum and design along with latest content in hard and soft form, without compromising on minimum requirements of DGET, if any;
• Provision of teaching learning aids including audio visuals to ensure best possible training/ skill development;
• Ensure placement for a minimum of 70 percent of pass-outs;
• Provide all required equipment as per norms of the course/ trade and in case the equipment of the institute is utilized, charges for that would be paid as per mutually agreed terms and conditions;
• Testing and evaluation of the trainees/ students, if third party evaluation is not mandated. However, if third party testing and evaluation is mandated, such an arrangement would need consent of the Government institute; and
• Certification for the pass-outs, if third party certification is not mandated. However, if third party certification is mandated, then such an arrangement would need consent of the Government institute.

TAs far as possible, there should be no upfront cost of training or skill development through partnership with PTPs for the State Government or the trainees. However, in case a PTP intends to run a paid training programme in partnership with a government institute, fee and charges for such a programme, would be determined by a Committee comprising of Director, Technical Education & Industrial Training, MD, Punjab Infotech or his nominee not below the rank of General Manger, a representative of Finance Department, an Expert from the field of VET/SD and Joint Director(IT) will be the member Secretary of this Committee. This committee would decide fee structure for paid training programmes after due consideration of fee and charges approved by various Ministries/ Departments of Government of India or the State Government for the agencies that have been empanelled or engaged by them.

The sharing of revenue between a government institute and a PTP would be determined as per the following: -

• PTP would access Government of India funds with no contribution of its own and the government institute an active partner:
  • Share of Government Institute: – 30% of total revenue collected or received for the programme
  • Share of PTP – 70% of total revenue collected or received for the programme.
• PTP would access Government of India funds with no contribution of its own and the government institute is a passive partner:
  • Share of Government Institute: – 20% of total revenue collected or received for the programme.
  • Share of PTP – 80% of total revenue collected or received for the Programme.
• PTP would access Government of India funds with some contribution of its own and the government institute is an active partner:
  • Share of Government Institute: – 20% of total revenue collected or received for the programme.
  • Share of PTP – 80% of total revenue collected or received for the Programme.
• PTP would access Government of India funds with some contribution of its own and the government institute is a passive partner:
  • Share of Government Institute 15%
  • Share of PTP 85%
• PTP would access Government of India funds with some contribution from the government institute and the government institute is a active partner:
  • Share of Government Institute: 40%
  • Share of PTP 60%
• PTP would access Government of India funds with some contribution from the government institute and the government institute is a passive partner:
  • Share of Government Institute 30%
  • Share of PTP 70%
• PTP is engaged by a government institute for training/ skill development programme, which are fully paid by the trainees/industry/employer:
  • Fee for such programme would be determined by a Committee comprising of Director, Technical Education & Industrial Training, MD, Punjab Infotech or his nominee not below the rank of General Manger, a representative of Finance Department, an Expert from the field of VET/SD and Joint Director (IT) will be the member Secretary of this Committee.
  • The revenue received/collected for such a programme would be shared as per following:
    • In case Government Institute is an active partner, the revenue received/ collected would be shared as per following:
      • Share of Government Institute: 40%
      • Share of PTP 60%
    • In case Government Institute is a passive partner, the revenue received/ collected would be shared as per following
      • Share of Government Institute: 30%
      • Share of PTP 70%
• PTP is engaged by a Government Institute for training/ skill development programme, which is partially paid by the trainees and partially funded by the PTP
  • In case the Government Institute is an active partner:
    • Share of Government Institute: 30%
    • Share of PTP 70%
  • In case the government institute is a passive partner:
    • Share of Government Institute: 20%
    • Share of PTP 80%
• Likewise, if a programme is partially paid by the trainees and partially funded by the Government Institute, the revenue would be shared between the two as following:-
  • In case the Government Institute is an active partner:
    • Share of Government Institute: 40%
    • Share of PTP 60%
  • In case the government institute is a passive partner:
    • Share of Government Institute: 30%
    • Share of PTP 70%
• PTP would access funds from Government of India with some contribution from trainees:
  • In case the Government Institute is an active partner:
    • Share of Government Institute: 40%
    • Share of PTP 60%
  • In case the government institute is a passive partner:
    • Share of Government Institute: 30%
    • Share of PTP 70%

In all situations envisaged in para 16 above, the sharing of revenue would be determined after deducting a fixed sum of 5% of total revenue collected or received for the programme for provision of buildings and it would be paid to the Government Institute if the building is provided by it or to such other person/ institute who provides space or building for the programme. It may here be clarified that the total revenue here refers to total receipts or collection for a programme or course which a PTP and an institute may agree to organize.

In case the government institute is a passive partner but is somehow required to provide some or all the equipment required for the programme, the charges for the same payable to it shall be determined by a Committee comprising of Director, Technical Education & Industrial Training, MD, Punjab Infotech or his nominee not below the rank of General Manger, a representative of Finance Department, an Expert from the field of VET/SD and Joint Director(IT) will be the member Secretary of this Committee. Such an amount shall be paid by the PTP out of his share in total revenue which may be determined in keeping with the above guidelines.

The payment of the share of the PTP would normally be released by the IMC when the PTP satisfies the condition of placement of 70% pass outs. For this either the conditions of Government of India would be applicable if PTP is accessing GoI funds or the following conditions would apply:

• Produce copies of appointment letters from the Employer;
• Produce letter of satisfactory employment from the Pass out trainees; and
• Produce letter of satisfactory employment from the parents of Pass out trainee

All the Institution Management Committees (IMCs) of Industrial Training Institutes and the Institutes of Technical Education should ensure strict compliance of above guidelines in finalizing any arrangement of industrial training and skill development with a Private Training Provider. These IMCs and the Institutes would utilize the revenue raised by them by engaging PTPs, as per existing guidelines of the Directorate or the State Department of Technical Education and Industrial Training for utilization of internal revenue generated by them.

Further in their endeavour to solicit partnership with PTPs in keeping with these guidelines, the institutes and their IMCs would ensure that programmes/courses organized/ run in partnership with Private Training Providers do not in any way interfere with regular courses/ programmes of the institutes. The institutes would not spare or provide any government Instructors/ staff at the cost of their regular training programmes. The government staff if engaged by a PTP for any of the programmes conducted as per these guidelines would be paid by them as per terms and conditions which they may so decide and the government institute will not have anything to do with such an arrangement. However, in case a government employee is engaged and paid for his services for a training programme organized as per these guidelines, he would be required to obtain prior permission from the Head of the institute but would not be required to deposit 1/3rd of payment/ remuneration received by him for such services.

Save as otherwise provided in these guidelines, if any dispute arises between IMCs, or ITIs or a Government Institute and the PTPs regarding the interpretation of these Guidelines or any communication is received from any department or Ministry of Government of India or the Industry or sponsors of a training Programme/Course, the decision of the Director, technical education & Industrial Training will be final.

All concerned may ensure strict compliance of these guidelines.