Partnership Opportunity

Partnership Opportunity

ASDC: Skill Development
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For Value Addition and Competitive Edge

Skilling challenges in the automotive industry

Many automotive companies have already takes steps such as establishing skill training centers, setting-up center of excellences, hiring apprentices (where apprentice gets an opportunity to earn and learn at the same time) and launching training programs across the value chain i.e. OEMs, Supplier, Dealer and Service providers, as per their own needs.

However, there are many challenges such as attrition, spiraling wages impacting competitiveness because of inadequate standardization, certification, assurance of skill levels, multiskilling requirements, need for continuous improvements/upgradations, meeting WorldSkills standards among others, which the industry is currently facing.

To make India the Skills Capital of the World and meet industry’s requirement of skilled manpower, it is important that we attract potential candidates and equip them with the necessary skills to meet the requirement of the industry as well as their own aspirations. Higher value additions through skilling would need to be integrated into the skill development. Value addition will facilitate capital creation. This, in turn, would lead to more economic activity and consequent additional jobs. Most importantly, we should aim to make skills aspirational and integrated with academic and career pathways as also celebrate the skilling achievements.

With the setting up of ASDC by the automotive in, and the role envisaged for them, there are numerous areas and scope for automotive Industry and ASDC collaboration.

ASDC and its Role

ASDC is the first Sector Skill Council of India, promoted by the Automobile Industry through Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association (ACMA) and Federation of Automobile Dealers Association (FADA) and Government of India represented by Department of Heavy Industry and National Skill Development Corporation (NSDC).

ASDC is founded to build a sustainable skill development ecosystem to ensure adequate availability of quality workforce to meet the automotive industry requirements. Currently, ASDC is working in following areas-

Automotive Industry- ASDC collaboration areas and scope
  • A. Govt. Funded /Subsidized Industry ASDC collaboration schemes
  • B. CSR/Self-Funded Training Program
  • Recognition of Prior Learning

  • National Apprenticeship Promotion Scheme (NAPS)

  • Government Funded Training Program

Recognition of Prior Learning (RPL)

A platform to recognize the informal learning or learning through practical experience, in order to get equal acceptance as the formal levels of education. RPL is a process of assessment of an individual’s prior learning. This provide opportunities to this category of workforce- without formal educational certification but with benchmarked vocational skills to join academic and career pathways and thereby make skills aspirational.

Benefits under RPL-4 Scheme

  • Promote a culture of continuous learning in the organization
  • Provide employee recognition in terms of grading and pay/salary
  • Engaged and motivated employees facilitating higher value additions and providing competitive edge.
  • Support employee growth and development, provide opportunities for career and academic growth making skills aspirational
  • Accidental Insurance of up to Rs. 2 lakhs for certified candidates for a period of 3 years as per PMKVY guidelines
  • Reward money of INR 500 to those candidates who have scored 30% above in the assessment
National Apprenticeship Promotion Scheme (NAPS)

To promote apprenticeship training in India Ministry of Skill Development & Entrepreneurship (MSDE), Government of India, launched National Apprenticeship Promotions Scheme (NAPS). The scheme Incentivizes Corporate to train and hire apprentices and help them meet their long-term workforce requirement by creating a pool of skilled manpower across different sectors. Corporate have already started generating contracts to hire apprentices under NAPS.

Benefits for the Industry/Employer

  • Easier to hire apprentices also in services, non-technical/staff level job roles in addition to manufacturing -as being done now.
  • Employers can engage apprentices’ up-to 2.5% to 15% of the total manpower strength
  • Industry can opt for in-house Basic Training or can outsource
    • Financial benefits to employer for hiring apprentices
    • Reimbursement of 25% of prescribed stipend to employers with respect to all apprentices, subject to a maximum of Rs. 1500/- per month per apprentice.
    • Sharing the cost of basic training with respect to fresher limited to Rs. 7500/- per apprentice for a maximum duration of 500 hours/3 months.
  • Apprentices are not employees, no obligation to hire them
  • Submission of returns, other information and contract of apprenticeship through apprenticeship portal, which has further provisions for time bound approval
  • Employers who are engaging apprentices under the Apprentices Act, 1961 are exempted towards contribution of EPF and ESI for apprentices engaged by them.

Benefits for Candidates

  • Candidates get an opportunity to learn while they earn from the age of 14 years
  • They get exposure to real work environment through hands-on training
  • Acquire skills and knowledge from industry experts
  • Better employment opportunity after completion of apprenticeship

Reference Documents

Government Funded Training Program

Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE) implemented by National Skill Development Corporation. The objective of this Skill Certification Scheme is to encourage youth to take up industry-relevant skill training that will help them in securing a better livelihood. This scheme has been approved for four years (2016-2020) to benefit 10 million youth Allocated Budget 12,000 Crores.

The PMKVY Scheme shall be implemented by the Centre along with the States. It shall have two components.
  • Centrally Sponsored Centrally Managed (CSCM): 75% of the PMKVY funds shall be available to MSDE for skilling through National Skill Development Corporation (NSDC)
  • Centrally Sponsored State Managed (CSSM): 25% of the funds of PMKVY shall be allocated to the States.

PMKVY Guidelines

Target under the government funded scheme are allocated through periodic RFP. Hence a corporate requires a dedicated team to facilitate the documentation and ensure smooth implementation of the project.

All the affiliation needs to be done through Skill India Portal. Refer below link while registering as Training Partner (TP) / Training Center (TC)

CSR/Self-Funded Training Program

The CSR contribution to skill development provides improved livelihood to the youth, which could create a lasting impact on the society at large. Industry can contribute funds directly to ASDC to meet and fulfill their CSR commitments under the Companies (Corporate Social Responsibility) Rules, 2013.

  • Sponsor candidates for skilling programs in operational areas/regions of company’s choice and in priority areas/sectors
  • Operationalize Project through an agreement between industry and ASDC or between industry, ASDC and NSDC
  • Offer existing facilities and machinery for on-the-job training where available
  • Implement the project through Training Partners with project management support.
  • Align all skill development programs to the National Skills Qualification Framework (NSQF) leading to certification from Skill India and ASDC
  • Option to co-brand certificates distributed to the candidates