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19. Labour Welfare and Employment Services

19.1 Labour Welfare and Employment Services

Industry cannot flourish if labour languish. - Calvin Coolidge

19.1.1 Introduction

Labour is one of the most important factors of economic growth. A harmonious relationship between labour and management is needed to maximize production and speed up the economic growth. Therefore, the State seeks to facilitate development of the industry while protecting the individual worker. The ambit of the labour policy includes human resources development, improvement of the living and the working conditions of the workers, strict enforcement of labour laws and provision of social security for workmen in all sectors as well as creation and maintenance of an atmosphere conducive to peaceful industrial relations in the State. In addition to implementing the labour policy for the welfare of the workers, it is also necessary to ensure that all adult persons looking for work are employed in jobs appropriate to their skills with adequate income necessary for a decent life. The proportion of agricultural workers to the total workers has been declining over the years, while the corresponding ratio in the secondary and tertiary sectors is on the rise. While there are rapidly expanding job opportunities, especially in the service sector, unemployment and underemployment continue to be prevalent in the society. This anomaly is explained by the fact that the bulk of the rural labour force is unskilled. The existence of low productive employment together with unemployment and underemployment accounts for the high incidence of rural poverty.

19.1.2 Labour Welfare

Organised Labour One of the structural indicators of employment is the extent of organized sector employment. The private sector dominates organized sector employment, accounting for 63% of total workers in this sector. Almost two-thirds of the organized private sector employment is concentrated in the manufacturing industry. In Tamil Nadu, the total organized sector employment accounts for 8.7% of the total workers in the year 2000. The state government deals with


the problems of the workers in industrial establishments and enforces various labour laws and social security legislations for protection of the rights and welfare of workers in the organized sector. The Tamil Nadu Labour Welfare Board, constituted under the provisions of Tamil Nadu Labour Welfare Fund Act 1972, has been implementing various welfare schemes for workers in organised sector, by running labour welfare centres, crèches, organizing training etc. Labour Laws The state government is enforcing various labour laws such as the Industrial Disputes Act, the Tamil Nadu Shops & Establishments Act, 1947, the Tamil Nadu Catering Establishment Act, 1958, the Industrial Employment (standing orders) Act , 1946, the Trade Unions Act, 1926, the Plantations Labour Act, 1951, the Motor Transport Workers Act, 1961, the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act 1965, the Payment of Gratuity Act, 1972, the Workmen's Compensation Act,1923, etc. The state government helps in maintaining a harmonious relationship between management and labour. Through the process of conciliation, strikes and lockouts are avoided and disputes are settled amicably. Labour courts and Industrial Disputes Tribunals have been set up in order to help workmen get speedy statutory relief. The enforcement machinery of the State ensures compliance of statutory requirements of labour laws as well as laws related to weights and measures so as to protect rights of the workers and consumers. The State Labour Advisory Board is a tri-partite high level committee consisting of representatives of the employers, employees and Government officials addressing issues related to labour laws and amendments to the Acts and Rules and other labour related problems. Labour Safety and Health The State also plays a pivotal role in protecting the safety, health and welfare of the workers in registered factories by enforcing the Factories Act, 1948 and other labour enactments in the State. Industries, which are involved in any dangerous operations, are inspected periodically so as to ensure health and safety of the workers. The Major Accident Hazard (MAH) Control Cell periodically inspects the MAH factories and recommends suitable safety measures to the management to prevent any industrial disaster. The State


Level Safety Audit Cell scrutinizes the safety audit report received from the above factories and makes suggestions for improvement in safety, environmental and health measures. Due to increased safety promotion activities such as conducting safety surveys and safety training courses, the total incidence of industrial accidents (fatal and non-fatal) have been appreciably controlled, even though there is an increase in the number of factories registered under the Factories Act. The table below shows the details of the factories and the accidents during the Tenth Plan period.

Table 19.1. 1

Labour Reforms The basic objectives of the labour laws are to create a safe work environment and provide the mechanism and the procedure to settle industrial disputes and ensure minimum wages, payment of provident fund, gratuity and bonus, besides other statutory benefits to workers. The Second National Labour Commission has recommended that steps should be taken to amend existing labour laws, where necessary, with the concurrence of the Government of India. The aim will be to implement reforms with a human face bearing in mind the need to provide a harmonious competitive working environment where productivity is rewarded and adequate flexibility is available to use the income earning skills developed especially by women. Unorganised Labour An overwhelming majority of workers continue to work in the unorganised sector, outside the purview of statutory cover, often earning wages below the subsistence level. The situation of surplus labour, mostly unskilled, has given rise to poor working conditions.


Social security for the workers is an important ingredient of the Labour Welfare Policy. Ensuring welfare of the workers in unorganised sector is given high priority by the State. To ensure the social security of the unorganized labour, the Tamil Nadu Construction Welfare Board and the Tamil Nadu Manual Workers Social Security and Welfare Board were constituted along with twelve more Welfare Boards viz., Tamil Nadu Auto Rickshaw/ Taxi Drivers Welfare Board, Tamil Nadu Washermen Welfare Board, Tamil Nadu Hair Dressers Welfare Board, Tamil Nadu Tailoring Workers Welfare Board, Tamil Nadu Handicraft Workers Welfare Board, Tamil Nadu Palm Tree Workers Welfare Board, Tamil Nadu Handlooms and Handloom Silk Weaving Workers Welfare Board, Tamil Nadu Footwear and Leather Goods manufacture and Tannery Workers Welfare Board, Tamil Nadu Artists Welfare Board, Tamil Nadu Goldsmiths Welfare Board, Tamil Nadu Pottery Workers Welfare Board and Tamil Nadu Domestic Workers Welfare Board. These boards were formed to provide social security and welfare measures for the workers engaged in the scheduled employments. The important schemes implemented by these Boards are educational assistance for the wards of the members who have completed tenth and twelfth standard, who are studying in graduate and post graduate courses, in regular and technical institutions as well as diploma courses in polytechnics and certificate courses in ITIs, accident insurance scheme, natural death assistance scheme and schemes for funeral expenses assistance, marriage assistance and maternity assistance and spectacle assistance. Child Labour The Constitution of India prohibits employment of children below the age of 14 years in the factories, mines or hazardous employments. In Tamil Nadu, the employment of children is prohibited altogether under the Factories Act, 1948, the Tamil Nadu Shops and Establishment Act 1947, Tamil Nadu Catering Establishment Act 1958 and Child Labour (Regulation and Abolition) Act, 1986. The Tamil Nadu State Action Plan aims at eradication of child labour in hazardous as well as non-hazardous employment by December 2007. The National Child Labour Project and the India and US Government Project (INDUS) Child Labour Project, which are funded by Government of India are functioning in 12 and 5 districts respectively with the objective of eradicating this heinous practice. The State endeavours to eliminate child labour working in tandem with NGOs, Centrally funded child labour projects as well as by


leveraging the activities of various Government departments such as school education, rural development, health etc.

19.1.3 Employment Services

It is the endeavour of the State to match the employment opportunities available in the State with the individuals who possess the appropriate skills to occupy those positions. Employment exchanges have been set up to perform this function. In view of the above objective, employment exchanges undertake vocational guidance services like dissemination of information on various vocations, giving vocational guidance in schools and colleges, publishing of pamphlets and conducting of special training classes. There are at present 30 district employment exchanges apart from 5 Special Employment Offices, 6 Special Vocational Guidance Centres for SC/ST and 4 Regional Deputy Directors Offices in the State. The broad functions of the Employment Exchanges include registration and placement of job seekers, rendering of vocational guidance services to the student community and job seekers and promotion of the welfare of the physically challenged persons and other groups for whom jobs have been reserved, in terms of provision of selective placement services under the organized sector. Employment Exchanges during the Tenth Plan period Over the last few years, the contribution of the Employment Exchanges in providing employment assistance under the public sector has been shrinking. More particularly, due to the imposition of a ban on recruitment except for a few select essential categories of posts in the State Government, between November 2001 and February 2006, placement functions remained at the lowest ebb. To overcome this, the needy registrants were given placements in the private sector wherever opportunities were available besides lending a helping hand to enhance the skills for the aspirants of public sector employment through competitive examinations. Study Circles have been set up in the District headquarters of all the Districts in the State besides in all the 385 Panchayat Unions to enable job seekers to improve their performance in state and national level competitive examinations. The details of number of persons registered and placement in the employment exchanges is given below:


Table 19.1. 2

19.1.4 Industrial Training Institutes (ITIs)

The Industrial Training Institutes, spread all over Tamil Nadu, are in the process of turning out skilled manpower according to the changing needs of the Industry. There are 56 Government ITIs with intake capacity of 19,384 seats, out of which 12 are exclusively meant for women, one for Scheduled Castes and one for Scheduled Tribes, imparting training in 45 engineering and 15 non-engineering trades. There are 605 affiliated private industrial training centres recognized by National Council for Vocational Training with an intake capacity of 56,684 seats. The Craftsmen Training Scheme under the aegis of National Council for Vocational Training (NCVT) provides skilled manpower to the Industry by imparting Industrial Training in 60 trades in Tamil Nadu. The Apprenticeship Training Scheme has been implemented in 2164 establishments for periods ranging from 6 months to 4 years with 16,161 apprentices undergoing training. The Government of India have evolved a scheme to upgrade 500 existing ITIs all over India at the rate of 100 ITIs per year into `Centres of Excellence'. The main thrust under this scheme is to provide appropriate infrastructure, equipment, updated syllabi and introduction of new trades. The funding pattern of the scheme is 75:25 to be shared between Government of India and the State Government. So far, 15 Government ITIs have been upgraded into Centres of Excellence under this scheme. Of these, 5 Government ITIs have been upgraded under domestic funding with an outlay of Rs.1.60 crore per centre and 10 have been upgraded under retroactive World Bank funding with an outlay of Rs.3.50 crore per centre. There are 753 industrial schools functioning with a capacity of 74480 trainees in Tamil Nadu. The Industrial schools give training in


110 Engineering and Non-Engineering trades for a period ranging from 45 days to 3 years in subjects which include emerging areas like IT and Communication, Food Processing and Preservation and Cosmetology etc. Growth of Training Institutes The number of ITIs, ITCs and industrial schools with their intake capacity in the beginning and at the end of the plan period is shown below:

Table 19.1. 3

This shows that though there has been substantial growth of intake capacity in the Government and Private ITI sector, the major growth has been in the Industrial schools only. 19.1.5 Review of the Tenth Five Year Plan The main objectives of this sector in the Tenth Plan included carrying out reforms in labour laws and strengthening the welfare boards constituted for unorganized sector workers. While seeking to abolish child labour and bonded labour, the State proposed to arrest rural to urban migration of labour by a combined package that included promoting manufacturing and service sectors so as to create employment opportunities for educated youth and upgradation of skills of construction and other workers to enhance their production and income. The objective also included reorientation of the functions of the employment exchanges. Financial Review and Performance The Tenth Plan outlay proposed for the Labour & Labour Welfare and Employment Services & Training Sectors was Rs.40.75 crore and the total expenditure incurred under these sectors was Rs.278.72 crore. The sectorwise details are given below:


Table 19.1. 4

In order to ameliorate the sufferings of the working class, an expenditure of Rs.197.07 crore was incurred under the Distress Relief Scheme. Under this scheme, a cash assistance of Rs.10,000 is paid to the family of the deceased, who is the breadwinner of the family, either male or female, with annual income of less than Rs.7,200. During the Tenth Five Year Plan period about 1,90,100 persons have been benefited under Distress Relief Scheme. Under the Accident Relief Schemes to certain poor occupational categories, cash assistance of Rs.15,000 is being paid to the families of artisans in villages including workers engaged in 44 categories of notified employment who died or were injured due to accidents. During the Tenth Plan period, a sum of Rs.6.76 crore had been spent under the scheme benefiting about 4,500 families. The State Child Rehabilitation cum Welfare Society was constituted in order to implement the Action Plan for eradication of Child Labour and a sum of Rs.2.08 crore was provided for this purpose during Tenth Plan. As against this amount, Rs.6.26 crore was spent on implementation that included various incentives for children studying in special schools set up to draw the children away from child labour. Under Employment Services & Training sector, a major new scheme, the Unemployment Assistance Scheme was launched in the last year of the Tenth Five Year Plan, in order alleviate the distress among educated unemployed youth, by providing financial assistance to them who are waiting in the Live Register of Employment Exchanges more than 5 years at the rate of Rs.150/-


per month for SSLC, Rs.200/- for higher secondary and Rs.300/- for graduates and post-graduate candidates. The assistance will be paid for a period upto 3 years. The expenditure incurred under thes scheme during Tenth Five Year Plan was Rs.32.13 crore. For development and modernization of Industrial Training Institutes, an amount of Rs.26.43 crore was spent during the plan period. Problems & Constraints In the welfare state, it is necessary to ensure significant improvements in skill development, working conditions as well as to provide welfare and social security measures, particularly, to the people in the unorganized sector. The problems faced by the labour in the unorganized sector are many, complex and peculiar. Institutional arrangements for looking after their welfare should be improved. The health, hygiene and industrial safety setup have been confined mainly to the manufacturing sector only and not to the agriculture and unorganized sector. The health aspect is very important for an average worker who is poor and cannot sustain himself unless remunerative work is available. In the context of globalisation, there is an urgent need to rationalize labour laws and set new directions for employers as well as employees. Labour reforms will have to be introduced balancing the needs of various stakeholders to ensure both industrial growth and welfare of the workforce. As far as industrial training institutes are concerned, they are not evenly distributed in the State and the curriculum is not updated in accordance with fast changing industrial development. Upgradation of the ITIs to produce skilled manpower to meet the needs of industry is an essential strategy for sustained and inclusive development of the economy.

19.1.6 Eleventh Five Year Plan

Objectives The objectives of the State in respect of Labour and Employment sector during the Eleventh Five Year Plan are as follows:


To promote the welfare of labour both in organised and unorganized sectors with special emphasis on the latter To carry out reforms in labour laws in consonance with technological advancement and industrialisation To provide safety net for labour by strict enforcement of labour laws as well as providing health care and social security to workers. To eradicate child labour both in hazardous and non-hazardous occupations and mainstream these children into society. To encourage establishment of Industrial Training Institutes to cover all areas especially rural and semi-urban as well as all the sections of the people particularly the vulnerable ones, so as to enable them to acquire technical skills and secure employment opportunities for ensuring inclusive development. To promote training and skill development catering to the needs of ever increasing demand of industry for craftsmen and semi-skilled workers in sectors like automobiles, textiles, IT, I.T.E.S, leather, light engineering, financial services etc., due to the post-liberalization boom in the manufacturing and service sector. To introduce modern trades in the ITI's with appropriate infrastructure and updated syllabi to cater to the emerging needs of industries. To facilitate the registered unemployed in the State to find remunerative employment through effectively functioning Employment Exchanges. To render Vocational Guidance Services including dissemination of information on careers to educate these youth on available job options through the employment exchanges. Strategies The strategies proposed to achieve the objectives of the Eleventh Five Year Plan are as follows:


Strengthening of Labour Welfare Boards with adequate financial resources, establishment of new boards for specific categories of unorganized workers and implementation of various welfare and social security schemes. Formulating an industrial relations policy to ensure that the conventions and recommendations of the International Labour Organization are not deviated and welfare of the workers is not lost sight of, while promoting industrial development. Strengthening administration by introducing e-governance in the department and welfare boards, not only to enable better service delivery with more transparency but also to facilitate on line registration and e-filing of returns by employers. Preparation of an Action Plan for a comprehensive training and skill development in co-ordination with the Industrial Associations, catering to the present and future needs of the industry. Organising multi-skill courses in the existing industrial training institutes to cater to the skill requirement of existing and new industries in specific areas. Establishment of new ITIs and industrial schools, expansion and modernization of institutes with adequate infrastructure facilities introducing new trades in the emerging sectors so as to provide marketable skills to students at affordable cost. Upgrading Government ITIs into Centres of Excellence through Central funding and World Bank aid as well as through the public private partnership mode. Forming Institute Management Committees at the ITI level to have effective cooperation and involvement of industries in managing the ITIs and establishing a dynamic linkage between the training institutes and labour markets. Registration of job seekers with Employment Exchanges to ensure that vacancies are filled following the principles of transparency and social justice.


Organising vocational guidance for the unemployed youth and providing career information. Labour Sector Grants to Labour Welfare Boards for Unorganized Labour Due to the awareness created among the unorganized labourers about the various welfare measures extended to them, a large number of workers are registering themselves with the Unorganised Labour Welfare Boards. In addition to the existing welfare measures, it is proposed to extend some more benefits to these workers. An outlay of Rs.125.80 crore is proposed during the Plan period for Grants to Welfare Boards for Unorganised Labour for meeting the expenditure on payment of pension, welfare schemes and administration of boards. Grant under revised Integrated Housing Scheme 2005 for Beedi Workers The Revised Integrated Housing Scheme 2005 for Beedi Workers, a Centrally Sponsored Scheme is being implemented in Tamil Nadu. Under this scheme, the unit cost for the construction of house for beedi workers is fixed at Rs.45,000/-, out of which, Rs.40,000/- would be the Central subsidy and Rs.5,000/-as additional State subsidy on behalf of the beneficiary. A sum of Rs.2.50 crore is proposed for the State subsidy during the Eleventh Plan. Assistance to the State Child Labour Rehabilitation-Cum-Welfare Society towards issue of Free Bus pass Children identified as child labour are released from work and admitted into the special schools run by the National and INDUS Child Labour Projects. These Child Labour Projects are now functioning in 17 districts of the State. The special schools run by these projects are situated far away from the residences of most of the child labourers. In order to avoid dropouts of children from the special schools and to ensure their continuous attendance, free bus passes will be provided to all the children studying in all the special schools run by the above Child Labour Projects in the districts. An outlay of Rs.9.30 crore is proposed for this scheme during the plan period.


Assistance to the State Child Labour Rehabilitation -Cum-Welfare Society - for Supply of Uniforms to the Children It is proposed to supply uniforms free of cost to the children studying in the special schools under National Child Labour Project and Indus Child Labour Project every year as a welfare measure with an outlay of Rs.2.70 crore. Constitution of Monitoring Cell Following the directions of the Supreme Court, a Monitoring Cell was created in May 1997 for the purpose of monitoring the progress in the eradication of child labour in the State. In addition to this, it is also monitoring the performance of 12 National Child Labour Projects and 5 Indus Child Labour Projects in association with Government of India /International Labour Organisation. It is proposed to provide a sum of Rs.0.91 crore towards the administrative expenditure of the monitoring cell during the Eleventh Plan. New Schemes E-Governance and Administrative improvement For implementation of e-Governance in the administration of Labour Department, it is proposed to develop software and networking to suit the functioning of the department upto the grass root level and to enable the public to interact with the department online. It is proposed to provide computers and internet facilities to the various offices through ELCOT. An outlay of Rs.1.50 crore is proposed for implementation of this scheme during the plan period. As a measure of administrative improvement, a sum of Rs.0.43 crore is earmarked for the purchase of xerox machines to the Regional and District level offices of Labour Department. Weights and Measures Strengthening of Enforcement Machinery - Modernisation of working Standard Laboratories (Digital Working Standard Balances) The Balances used in these Laboratories are outdated and worn out due to constant use. To measure the accuracy of the Weights and Measures used in trade and commercial transactions, the existing Working Standard


Physical Balances need to be replaced with the Digital Type Electronic Balances of appropriate accuracy. Such replacement will also modernise the Secondary and Working Standard Laboratories in keeping with the developments in the field of Metrology. Therefore, for the replacement of 67 Physical Working Standard Balances, a sum of Rs. 2.20 crore is proposed during the plan period. Administrative improvement of the Chief Inspectorate of Factories A thrust will be given for improving the Inspectorate of Factories. Under administrative improvement and provision for infrastructure, schemes such as implementation of e-Governance, strengthening of Inspectorate, and purchase of vehicles, buildings, formation of Safety Awareness Committee and purchase of modern equipments are proposed to be taken up with an outlay of Rs.1.61 crore during the plan period. Employment Wing Under the Employment and Training sector, the Government has mounted a double pronged approach to support the educated unemployed by providing financial assistance and to promote employment opportunities by upgrading skill based education. Payment of relief to the unemployed youth An outlay of Rs.300.00 crore is proposed for implementing the scheme for payment of relief to the unemployed youth, out of which, Rs.125.00 crore has been provided under Schdeduled Caste Sub- Plan (SCSP) during the Eleventh Plan period. Distress Relief and Accident Relief Schemes The Distress Relief scheme will be continued in the Eleventh Plan also with an outlay of Rs.163.00 crore, of which, Rs.29.00 crore is provided under the Scheduled Caste Sub-Plan (SCSP). In order to alleviate the sufferings of the families of the workers died or injured due to accidents, a sum of Rs.3.60 crore is earmarked for the Eleventh Plan under Accident Relief Scheme.


Training Wing

Ongoing Schemes Ongoing schemes such as development of Industrial Training Institutes, modernisation of existing I.T.Is, starting of women ITI starting of short term training courses in Industrial Training Institutes, upgradation of Govt. ITIs as Centres of Excellence, Apprentice Training Scheme etc., are to be continued in the Eleventh Plan period with a total outlay of Rs.75.12 crore. New Schemes Establishment of new ITIs With the objective of providing skilled manpower to the emerging needs of the industry and establishment of Industrial Training Institutes to cover rural and semi-urban areas as well as the poor and economically backward sections of society, it is proposed to start 6 Government I.T.Is in district headquarters where there are no Government ITIs at present. Further, based on directions from Government of India, an ITI exclusively for Urdu speaking muslims in the Urdu medium will be set up. The cost of this ITI will be funded partly by Government of India. New demand driven trades will be started in these ITIs with strength of 400 trainees each. A total outlay of Rs.30.00 crore is provided during the plan period. Starting of New Trades in I.T.Is The National Council for Vocational Training (NCVT) is introducing new trades in emerging areas of rapidly changing technology. To meet the industrial needs, new trades like Medical Electronics, Consumer Electronics, Medical Transmission, Net work Technician, Mechanic Auto Electrical and Electronics, Interior Decoration and Design, Computer Aided Embroidery and Needle work Architectural Assistant etc, will be started in Government I.T.Is. So it is proposed to start new trades in the existing 20 Government I.T.Is at a cost of Rs.15.00 crore. It is proposed to introduce new trades in Industrial Training Institute exclusively for Tribals at Sankarapuram in Villupuram District and another one for Scheduled Castes at Chidambaram in Cuddalore District, with a total outlay of Rs. 5.20 crore during the Eleventh Plan.


Formation of Placement Cells in I.T.Is The Related Instruction Centres sponsor the skilled manpower produced by ITIs to the Industrial establishments and ensure their placement, thereby sharpening their skills and paving the way for obtaining a National Apprenticeship Certificate, which is considered superior to National Trade Certificate. However, there is no mechanism or cell to help the trained candidates to be placed in wage employment / self-employment. Now-a-days fast growing industry absorbs the trained candidates directly in their establishments. To promote placement, formation of placement cells in Government ITIs with adequate manpower is proposed with a outlay of Rs.0.45 crore. Infrastructure Development of I.T.Is The buildings of I.T.Is are to be constructed as per NCVT norms to have adequate space and basic amenities. Some of the I.T.Is are not having adequate space for accommodating the existing trades/ administrative blocks. It is proposed to earmark a sum of Rs. 14.00 crore for the construction of own buildings for ITIs and Rs.5.00 crore for renovation of buildings. In addition, construction of additional class rooms, hostels, toilet facilities and other infrastructure facilities are proposed during the Eleventh Plan period. Modernization of ITIs According to the modern trends and change in technology, the NCVT reviews the syllabi of trades in I.T.Is periodically and brings out changes in the curriculum in consonance with the technical advancement. As per the terms and conditions of the NCVT, training has to be imparted in the revised syllabus. The revision of syllabus necessitates the provision of additional tools & equipments required for conducting practical training. As the technology changes, industries employ modern equipments to boost production. So, the trainees should also be exposed to these new techniques and equipment. The tools and equipments which are more than two decades old and have become obsolete due to wear and tear will be replaced in some of Government I.T.Is. For taking up of improvement measures in the existing ITIs, a sum of Rs.13.95 crore is proposed during the Eleventh Plan.


Upgradation of ITIs under Public-Private Partnership mode The Central scheme for upgradation of ITIs in the Public-Private Participation mode will be implemented in the State during the plan period. Under this scheme, the Centre will provide interest free loan of upto Rs. 2.50 crore for each ITI for upgradation. 12 ITIs are proposed to be upgraded in the first year, with the remaining ITIs being taken up in the subsequent years of the plan period. Upgradation of ITIs as Centre of Excellence A sum of Rs.14.24 crore is proposed as State share for the GOI scheme of upgradation of Government ITIs as Centre of Excellence with main thrust to provide appropriate infrastructure equipment, updated syllabi and introduction of new trades during the Eleventh Plan period. Modular Employable Skill Cells The Confederation of Indian Industry (CII) forecast a huge demand for skilled manpower in sectors like automobiles, textiles, IT, ITES, leather, light engineering, construction and financial services. Creating the training infrastructure required for producing an estimated 15 million skilled manpower, huge investments will be required. In order to meet this requirement with minimum cost, the Government of India has proposed the "Modular Employable Skills" (MES) schemes where training will be given by utilizing the existing infrastructure in I.T.Is. So, it is proposed to conduct Part-Time / Week end training under the MES scheme in I.T.I /I.T.Cs. The training period ranges between 60 and 450 hours. An independent agency like National Association of Software and Services Companies (NASSCOM) will conduct testing and certification. Successful candidates will be issued with NCVT certificate. Though Government of India bears the cost of training, the infrastructure required for implementation and monitoring has to be done by the State. So, MES cells are to be formed in 56 I.T.Is and one Basic Training Centre at Ranipet for effective implementation and monitoring of the I.T.Is. A State share of Rs.8.00 crore is proposed for this scheme during the Plan period. This could increase further based on the successful implementation of the scheme in the first year.


Eleventh Five Year Plan Outlay (2007­12) The total Eleventh Five Year Plan outlay proposed for the Labour Welfare, Employment Services and Training Sector is Rs.803.20 crore. The Department wise details are given below:

Table 19.1. 5



(Rs. in crore)




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