MoUs - Ministry of Skill Development & Entrepreneurship and Ministry of Steel & Mines

MoUs - Ministry of Skill Development & Entrepreneurship and Ministry of Steel & Mines

Question: 3 ministries have signed recently MoUs on Skill Development. MoUs were signed to address the human resource requirements in these sectors. Provide an overview of these MoUs.

- Ministry of Skill Development and Entrepreneurship and Ministries of Steel and Mines have signed MoUs on Skill Development

- The MoUs were signed for addressing HR requirements in these two sectors

- This partnership will be implemented through the Directorate General of Training and National Skill Development Corporation

- Cabinet has also approved the National Policy for Skill Development and Entrepreneurship; this will help create uniformity across skill initiatives it is planning with Central Ministries

- The Ministries are now focusing on the requirement for skilled manpower within the Steel and Mining Industry

- Both Ministries are working towards standardised vocational training and infrastructure for the industry so it will become a self sufficient and progressive industry

- Aim is also to create more international opportunities

- Ministry is also undertaking Recognition of Prior Learning for close to 5 lakh persons working in mines and coal sector

- Skill Council for Mining Sector plans to upscale and train around 4.50 lakh people for the mining industries including 50,000 new inductees to ensure employability within 10 years

- A three layer framework for skill development needs to be adopted to meet the requirements of the country

- The need based skill requirements need to be assessed on short and long term basis

- Working together on a larger scale is required for executing skill development in a strategic manner and this forms the basis of the MoU

- The MoUs will also be implemented with the support of PSUs under these Ministries

- As per the agreement, MSDE will establish standards and quality assurance process to facilitate project implementation under the MoUs

- As part of the agreement, MSDE will set standards and quality assurance process for facilitating implementation of the projects under the MoU

- It will also ensure identification of projects agreed under the MoU

- Identification of Relevant Quality Packs-National Occupational Standards will be aligned with the National Skills Qualification Framework for various jobs in selected sectors for the 3 industries

- MoUs are aimed at standardised training delivery through ATIs/RVTIs and ITIs and select NSDC training partners for the industry

- MSDE will also work towards assessment and certification conducted by NCVT or NSDC approved Sector Skills Councils and provide pathway to current as well as retired PSU employees to work as Assessors/Trainers

- Ministry will also facilitate utilisation of existing training infrastructure and maximisation of apprenticeship training in PSUs in collaboration with DGT

- As per the agreement, the ministries will enable PSUs and related contractors to hire workforce certified on job roles aligned to NSQF

- The agreement also sets up a policy for incentivising skill training and certification under NSQF in recruitment process and certification of RPL of skilled/semi skilled persons

- PSUs will also utilise CSR funds for training purposes and set up CoEs in partnership with DGT/NSDC for skill training in core and allied sectors

- MoUs envisage giving impetus to PM’s vision of Skilled India

Facts and Stats

- As per the report launched in 2014, lack of skilled labour is the next challenge for the steel industry which will require 2.85 lakh more such workers to treble annual capacity to 300 million tonnes within a decade

- As per the estimates, domestic steel industry needs extra 2.85 lakh workers to increase the capacity from around 100 MT currently considering the productivity at 700 tonnes of crude steel produced per person, each year

- Indian steel industry currently employs 2 lakh people including 97,000 in SAIL

- With a total of 15% of manpower in the steel plants being engineers, there will be additional requirement of 43,000 engineers by 2024-2025
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