Home apprenticeship MSDE starts DBT in NAPS; Rs 15 Cr transferred on launch

MSDE starts DBT in NAPS; Rs 15 Cr transferred on launch

11 min read

To bolster the participation of both industries and young individuals in apprenticeship training on a nationwide scale, Dharmendra Pradhan, Union Minister for Education and Skill Development & Entrepreneurship on Aug 11 launched Direct Benefit Transfer (DBT) in National Apprenticeship Promotion Scheme (NAPS). An amount of approx. 15 crores was disbursed to one lakh apprentice by the Minister to mark the launch.

Under NAPS, the Government of India reimburses 25% of the prescribed stipend — subject to a maximum of Rs. 1500/- per month per apprentice — that all employers undertake by engaging apprentices. With the implementation of NAPS, it has been noted that not all establishments seek partial reimbursement of stipend by the Government.  Going by past trends, 30% of target apprentices, under NAPS 2.0, will be paid their stipend by Government of India. With the implementation of DBT, the number of apprentices is expected to increase. Accordingly, the percentage of apprentices covered will be going up beyond 30%.

A total of 25 lakh youth been engaged as apprentices since the inception of inception National Apprenticeship Promotion Scheme in 2016, till 31st July 2023. Around 2.6 lakh Apprentices have completed training in FY 23-24. The Government of India’s proactive efforts to promote quality training across sectors, led to the number of active establishments subsequently increase from 6,755 in 2018-19 to 40,655 in 2023-24.

Lauding the initiative, Pradhan said that today is a momentous day towards invigorating the apprenticeship ecosystem in our country. Launch of DBT in National Apprenticeship Promotion Scheme is a big step towards fulfilling our Prime Minister Shri Narendra Modi’s vision of making skilling an apprenticeship aspirational as well as encouraging earning while learning as envisioned in NEP.

Atul Kumar Tiwari, Secretary, MSDE said that empowering our nation’s youth with skills is at the heart of our vision, and the introduction of Direct Benefit Transfer (DBT) through NAPS marks a stride towards transparency and efficiency.

There has been more 488% increase in number of establishments who have started apprenticeship training since the commencement of NAPS. This increased adoption of apprenticeship training will strengthen our nation’s workforce and economy. Some of them were Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), Baddi Cluster from Himachal Pradesh and North Malabar Consortium Industry cluster

Reacting to the launch of DBT in NAPS, TeamLease Degree Apprenticeship spokesperson Vice President, Dhriti Prasanna Mahanta, commented: “The Government of India’s Direct Benefit Transfer (DBT) scheme is a game-changer move that will change the way apprenticeship works in India. It will also help in improving the efficiency amongst all stakeholders. The DBT scheme is expected to help in the apprenticeship program grow by 50% in the next five years which will benefit a wide range of industries, including BFSI, IT, retail, electronics, automotive and healthcare. The scheme will also help to create jobs for young people and to improve the skills of the workforce. According to a study by the National Skill Development Corporation, the DBT scheme could create over 10 million jobs in India by 2025. The study also found that the scheme could help to improve the skills of the workforce by up to 20%. India has a potential of 20 mn apprentices, it has taken 62 years to reach this milestone, but I am confident that we are on the right path and have the possibility of reaching 20 mn milestone in next 10 years”

 The launch of DBT is a big milestone for formalisation of apprenticeships in India and sets the foundation for scaling the system. This also sets the tone of the commitment that the Finance Minister made during budget 2023, that in the next three years, close to 5 million apprentices will get direct benefits under the NAPS and PMKVY scheme.   Over last 9 years, Govt has brought about major reforms in the Apprentices Act and in the guidelines, which has resulted in visible green shoots of doubling the apprentices count from 3.5lacs to almost 7 lacs, and the number of 20000 organizations is going up to 40000 organizations actively engaging apprenticeships, in last 2-3 years. The success of DBT and other initiatives by the Govt, will solidify the confidence and faith in the system which will encourage more organizations to engage with apprenticeships for workforce development and economic productivity; and for the youth to take up apprenticeships for enhancing employability and career development.

Meanwhile, the MSDE also organized the Chintan Shivir on “Enhancing Apprenticeship Engagement” to elevate the uptake of apprenticeship programs among all stakeholders on DBT launch. A core facet of this session is to amplify the role and responsibility of various entities, including other central and state governments, industry bodies, and the private sector.

The Chintan Shivir was divided in three breakout sessions themed on Stakeholder Convergences to Make Apprenticeship Aspirational, Strategies and Practices to promote Quality Apprenticeship, and Creating a Diverse and Inclusive Apprenticeship Ecosystem, respectively.

The deliberations were centered around:

    • Fostering dialogue exchange on apprenticeship
    • Increase uptake of apprenticeship
    • Quality enhancement
    • Necessity of equal opportunities for all, including marginalized, unserved, and underserved communities from various backgrounds and geographies.

 The key achievements of National Apprenticeship Promotion Scheme (NAPS) include:

  • In FY 2023-24, approximately 2.6 lakh apprentices have successfully completed their training.
  • Women apprentices have also increased from 22,427 in 2018-19 to 1.48 lakh in FY 2022-23, registering a nearly 7 fold increase in last five years.
  • The number of active establishments has subsequently increased from 6,755 in 2018-19 to 40,655 in 2023-24.
  • In 2022-2023: We have trained 4.80 lakh apprentices in Optional Trades while we in DT we have trained 2.58 lakh apprentices.
  • We today witness states like Gujarat, Maharashtra, Haryana, Uttar Pradesh, Tamil Nadu, Karnataka, Telangana topping the apprenticeship engagement chart
  • More than 9 lakh youth who are apprentices today are in the age group of 23-26
  • There are takers right from 5-8th passout to Graduate, Post Graduate and Certificate holders who have opted for apprenticeship training
  • Our last mile impact has today reached out to North Eastern Region, to aspirational districts and tribal districts
  • To create awareness about Apprenticeship we have held Pradhan Mantri National Apprenticeship Melas and Kaushal Mahotsav and industry cluster workshops at a large scale across the country
  • There is participation from Industrial Corridors, Industrial Parks, Chamber of Commerce, Private sector banks, Large CA Firms, Sector Skills Councils and Industry clusters in boosting apprenticeship training
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