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The NAPS Puzzle: Unlocking the Skill Enigma or Perpetuating Corporate Welfare?

India is in the midst of its industrial makeover and the much-touted ‘growth story’. 🏭 Where are we in terms of having a qualified work force supply to meet the growing demands of this cacophony? 🤷‍♀️ No, we don’t know because the truth is always coloured in political promises and bureaucratic data reports. 💼

TABLE OF CONTENTS

Scope of NAPS

NAPS Benefits for Employers and Employees

NAPS Registration Process in India

NAPS Impact

NAPS 2.0 Changes

Challenges in NAPS Implementation in India

NAPS 2024 Future Outlook

The ‘growth story’ narrative often overshadows the stark realities of skill shortages, underemployment, and the mismatch between industry requirements and the available talent pool. 🤖 AI is disrupting all technology, the race for semiconductor chips is turning foes into bros 🤝 and Modiji has zoomed past all other PMs this country has ever seen and done the unthinkable - executed the most successful “Over-Population Marketing” strategy that should frankly be taught in Harvard. 🤯

What was once India’s Achilles heel that made many discount us, he turned our population problem into pure gold. 🏆

We are the consumerists, and now watch us turn into capitalists.💰

Then, there was one… of many big challenges. It’s no secret that the Indian education system has never failed at producing 🧑‍🦲📝 Ghajini-type rote learners who graduate pretty much out of touch with real-world skills. 🕶️ Even the government knows and now you know that they know.

So in August 2016, our extremely foresighted Pradhan Mantriji ki Sarkaar launched the National Apprenticeship Promotion Scheme (NAPS) 🎉 which was meant to help 👔 provide rozgaar (employment) and create a skill development ecosystem that keeps churning industry-ready talent for foreign and Indian corporates alike.

TYPES OF EMPLOYERS 🏭

Larger Establishments:

• Mandatory for all establishments with 30+ employees, regular or contracted.

• 2.5% to 15% of the total workforce must be apprentices

Micro, Small and Medium Enterprises (MSMEs):

• Optional for all establishments with 4 to 29 employees

• Financial incentives and flexibility under NAPS to benefit MSMEs for training and retaining skilled workers.

Industries/ Sectors with Skill Gaps:

• Establishments operating in industries and sectors with workforce skill gaps for relevant job roles.

• These employers can design "Optional Trades" tailored to their specific industry requirements or effectuate the "Designated Trades" notified by the government.

Employers Aiming to Build a Skilled Talent Pipeline:

• Designing apprentice training as per specific requirements allows companies to retain trained apprentices for full-time employment, potentially building an industry-ready workforce and addressing their long-term human resource needs.

TYPES OF EMPLOYEES 👨‍🎓👩‍🎓

Fresh/Unskilled Candidates:

• Those who lack formal vocational training or education, especially individuals from underprivileged backgrounds

Graduates/Diploma Holders:

• Those who have completed higher education, such as graduates and diploma holders, but lack practical, hands-on skills desired by employers

If you are the employer

• Reimbursement of 25% of the prescribed stipend (up to ₹1,500 per month per apprentice)

• Basic training costs up to ₹7,500 per apprentice shared by the government

• Establishments, registered under the Apprentices Act of 1961, are exempted from contributing towards EPF and ESI for the engaged apprentices.

If you are the apprentice

• Graduate/degree apprentices receive a minimum monthly stipend of ₹9,000

• Apprenticeship duration can range from 6-36 months, at the employer’s discretion

Strong industry-academia collaboration: NAPS fosters active partnerships between educational institutions and industries for apprenticeship training to be aligned with industry needs.

Starting with an entrepreneurial mindset: Hands-on industry experience and exposure could empower trainees to explore entrepreneurial opportunities and potentially become job creators, rather than just job seekers.

Advancing the Skill India Mission: NAPS 2.0 changes directly contribute to the overarching goals of the government's broader Skill India initiative, which was birthed to enhance youth employability.

The scheme's flexibility in accommodating both skilled and unskilled individuals is a credible attempt by the government to create a win-win situation to address the diverse skill gaps across various industries, create much-needed opportunities for employment seekers to gain industry-relevant skills and valuable work experience, 🤝 while also helping companies get access to a pool of subsidized, trainable talent.

Modiji’s government is 10 steps ahead of every jugaadu Indian entrepreneur who is already scheming to outsmart them. NAPS 2.0 has some key differences from the original scheme launched in 2016.

Direct Benefit Transfer (DBT):💰

• The government's financial support under NAPS India 2024 will now be directly transferred to the apprentices' bank accounts instead of reimbursing the establishments.

• This will improve transparency, reduce delays, ensure intended benefits go where they are supposed to and increase apprenticeship participation.

Oversight and Compliance: 🔍

• The scheme is subject to physical verification of establishments, periodic audits, and adherence to mandatory reporting.

• Establishments found misusing these benefits or skipping training as per the Act may face action.

Exclusion of Central and State PSUs: 🚫

• The revised scheme excludes Central and State Government Departments and public Sector Undertakings/Enterprises, including Public Sector Banks, from availing the stipend support.

• This is to incentivize private sector participation in the apprenticeship program.

"Give It Up" Campaign: 👎️ 

• Large private organizations are being encouraged to forgo the stipend support for optimal utilization of government resources and to channel the support towards smaller establishments and underserved regions.

Revised Roles and Responsibilities: 👨‍💼👩‍💼

• The updated scheme clearly defines the roles and responsibilities of various implementing and monitoring agencies, including the Ministry of Skill Development and Entrepreneurship (MSDE), the National Council for Vocational Education and Training (NCVET), and State Governments/UT Administrations.

• This streamlining of roles is expected to enhance the coordination and effectiveness of the NAPS implementation in India with greater involvement of state-level authorities in the scheme.

The underlying assumption under National Apprenticeship Promotion Scheme is that the offered incentives will be enough for companies to take on these apprentices and provide them with the necessary training and experience.

That’s exactly the problem with the “If and Then” programming in administrative schemes trying to course-correct restrictive labour policies and slow-moving educational reforms in a state-dominated economy.

Yes, making NAPS India 2024 compulsory for larger enterprises WILL ensure wider participation and have a significant impact on skill development across industries. But, do these benefits help offset training costs and incentivize enterprises to increase their apprenticeship intake? Some probable hindrances to the NAPS implementation could be…

• Constant compliance monitoring makes NAPS a veritable maze of regulations and registrations 🤯

• Foreseeable challenges in NAPS 2.0 implementation potentially be the convoluted web of financial incentives and bureaucratic red tape 💼

• ‘Hire and fire at will’, Exemptions from labour laws along with apprenticeship periods running up to 3 years could also mean exploitation of youth through indentured servitude and ‘glorified cheap labour’ 🤬

• Cost-conscious companies build their talent pipeline with the government footing a large part of new trainee costs 💰

Bridging the skill gap? Or a corporate welfare scheme in disguise? 🤔

NAPS changes in India seem to be a natural evolutionary step towards catalyzing systemic changes in the skill development ecosystem. NAPS in 2024 is the corporate equivalent of a cheat code. However, its 💯 success in 2024 and beyond will depend on the government's ability to address the highlighted challenges and create a collaborative environment where companies are willing to invest in skill development, while also upholding the rights and welfare of the apprentices.

It's a delicate balance between continuous monitoring, course correction, and the collective efforts of the government, industry, and educational institutions. NAPS for employers in 2024 can be a win-win, but only if they're willing to play by the government's rules and work towards the broader goal of developing a skilled and future-ready workforce in India.

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