Status R epor 007 - JCF Joshi Foundation · Swiss Dual System in India . Status Report 2007 . ... (India) Limited is the country’s largest dedicated polyester ... Transport Corporation

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RAJENDRA & URSULA JOSHI CHARITABLE FOUNDATION

Swiss Dual System in India

Status Report 2007

An Evaluation of Industry Requirements

regarding Apprenticeship Education in India

January 2008


- 2 - Status Report 2007

Contact Address:

Rajendra & Ursula Joshi Charitable Foundation

Albisriederstrasse 315

CH - 8047 Zurich

Switzerland

phone +41 43 311 15 30

fax +41 43 311 15 31

mail [email protected]

internet www.joshi-foundation.ch

© Rajendra & Ursula Joshi Charitable Foundation, 2008



Table of Contents

Table of Contents 3

1. Introduction 4

2. Limitations in Present Training System in India 5

3. Presentations 6

3.1 First Meeting: Leading Members of two Family Organizations 7

3.2 Second meeting: CEOs or Owners of Small and Medium Enterprises (SME) 8

3.3 Third Meeting: CEOs or Owners of Large Scale Industry 9

4. Feedback and Findings 11

4.1 Role of Governments 11

4.2 Role of Industry 12

4.3 Role of Trade Associations 12

4.4 Financing 13

4.5 Teacher Training 13

4.6 Language of Teaching 14

4.7 Selection of Trades 14

5. Summary 15

6. Further Procedure 16

Appendix:

Slides of Presentation 17



1. Introduction

The Rajendra & Ursula Joshi Charitable Foundation (JCF) wants to introduce the Swiss

Dual System for apprenticeship education in India. The Swiss system of vocational

education and training (VET) is based on joint efforts of industry and governmental

schools: On the one hand training companies impart practical skills essential for trade,

on the other hand vocational schools teach vocational and general academic elements.

The Swiss Dual System is quite different from today’s industrial training in Indian

institutions (for the training system in India, see clause 2 hereinafter).

First of all we must find out how the industry and governments (state and central) in

India are interested in such a new apprenticeship system. For this purpose JCF created

and sent a small brochure about the particularities of the Swiss Dual System in July

2007 to interested parties in India. In October 2007 three presentations were given in

New Delhi and Bhiwadi to learn the industry requirements regarding apprenticeship

education in India. The audience consisted of representatives of an Industrial Training

Institute (ITI), members of family organizations and small and medium enterprises (SME)

as well as of exponents of large scale industry. This report shall overview the

discussions, queries and findings.



2. Limitations in Present Training System in India

India is concentrating on ITI (Industrial Training Institute) or ITC (Industrial Training

Center) education system for producing skilled workers. An Indian adolescent after

class VIII (compulsory schooldays), X (general qualification for university entrance or

decision for a career in business administration, science or commerce) or XII (a kind of

pre-university education) joins ITI/ITC for two years. Here a practical training as well as

theoretical teaching is given to candidates. After passing ITI/ITC the graduates easily

find an employment in industry.

The ITI/ITC education system is connected with various limitations:

(1) ITI/ITC education has to be paid by parents whereby such monthly education costs

between 1000 and 2000 rupees can be borne only by a very small number of families.

Furthermore the government has not enough funds ready to bear these ITI/ITC

education costs instead of or together with the families: In India about 20 millions

adolescents finish every year school at class VIII, X or XII searching for an

apprenticeship training position. Such annual costs would overstrain the financial

possibilities of the government.This is the reason why only 70-80% of ITI/ITC capacity

is effectively used.

(2) In general ITIs/ITCs do not have proper infrastructure usable in industry (high

technology machinery is missing). There are no uniform quality standards and no

common requirements for the certification with validity for all ITIs/ITCs. As a

consequence the graduates’ professional skills depend on the quality/rating of the

individual ITI/ITC.

(3) The industry does not impart the practical training because the curriculum is

designed exclusively by the government. The needs of the industry are neglected. So

India possesses 40 millions of construction workers but no vocational education and

training system for this professional category.

(4) There is no understanding within the industry that apprenticeship education is a

common task, which requests a contribution of each of them. The enterprises want to

educate only their own employees. They are not interested in skilled workers with a

generally accepted certification, which allows a change of employment easily. Besides

the large scaled industry does woo frequently qualified workers from small and medium

enterprises (SME) with higher salaries.



3. Presentations

Three presentations were given for representatives of different industries in New Delhi

and Bhiwadi (Rajasthan). Each presentation included a description of the

characteristics of the Swiss Dual System with an education example for car mechanic

trade, task sharing between working environment, Federal Government and State

Government as well as cost-benefit-relationship from the training company’s point of

view. In addition a discussion proposal for the implementation of the Swiss Dual

System in India was made: Project phase 1 (testing phase) with a tailored

apprenticeship education for unskilled workers of industry in the area of approximately

six selected trades and a project phase 2 apprenticeship education for adolescents

after finishing class VIII, X or XII. Following the presentations a discussion took place

based on a standardized list of questions. The slides, which are shown and discussed,

are given in the attachment.

The audience selection was based on our personal acquaintance to the representatives

or to the organizer of the corresponding meeting. We assume the inclusion of different

sizes of industries and various areas of business makes it possible to get a wide-

ranging idea about the requirements of the Indian industry concerning an

apprenticeship education project.



3.1 First Meeting: Leading Members of two Family Organizations

The meeting was held on October 9, 2007 in New Delhi at the conference center

of Park Plaza Hotel Gurgaon. The participants were representatives of the Mohta

Family and the Bhartia Family, partly accompanied by their human resource

managers. In addition a teacher from an ITI was present and attended the

discussion in plenum.

The Mohta Family is owner of enterprises in the area of real estate development,

tea plantation, ceramics, hotel management, and education. They held Bhaskar

Tea & Industries Ltd., S.V.M. Ceramic Ltd., Kamla Properties Ltd., Healthy Life

Ltd., Mohta Health Society and Bhaskar Educational Society. Only family

members are shareholders of these companies.

The Bhartia Family is owner of hospital (Sitaram Bhartia Clinic in Gurgaon) and

science & research institute (Sitaram Bhartia Institute of Science and Research in

New Delhi). Bhartia Industries Ltd. is one of the leading manufacturers of low

voltage electrical switchgear and electronic control gear with its head office in

New Dehli and manufacturing plant in Faridabad. Only family members are

shareholders of Bhartia Industries Ltd. and O.P. Bhartia.



3.2 Second meeting: CEOs or Owners of Small and Medium

Enterprises (SME)

This meeting was held on October 10, 2007 in Bhiwadi (District Alwar / Rajasthan)

at the B.M.A (Bhiwadi Manufacturer's Association) House. The meeting was

organized by Mr. O.P. Agarwal (president of B.M.A.) and Mr. S. Sharma (director

of Astroblessings International Pvt. Ltd., Jaipur).

Bhiwadi Industral Area is established in 1977 and located at east end of Rajasthan

in Tijara Tehsil of Alwar District, just 55km away from Indira Gandhi International

Airport, New Delhi. Bhiwadi is a small industrial town spread over 3350 acreas of

land with 3000 additional acres proposed for extension. In Bhiwadi around 1000

small, medium and large sized companies of all types of industries like steel,

furnance, electronics, engineering, textiles, pharmaceuticals, priniting, packagings,

cables, rolling mills, food processing, herbal care etc. are located.

B.M.A. is the representative body of all located industrial units and is the co-

ordinating body between the governement and the industry.

Around 200 invitations had been sent out to the Bhiwadi located small and

medium enterprises (SME). Even though the invitations were available for the

interesting parties only one day before the presentation, approximately 100

persons attended the presentation.



3.3 Third Meeting: CEOs or Owners of Large Scale Industry

This meeting was held on October 12, 2007 in New Delhi at the Club House of Taj

Mansing Hotel. This meeting was organized by Mr. R.P. Singhania.

Listing of participants

Mr. R.P. Singhania, Vice Chairman and Manging Director (JK Tyre & Industries Ltd.)

Mr. Dr. P.V. Bhide, President (Corporate HR)

JK Organisation www.jkorg.in

JK Organisation is an association of industrial and commercial companies and

charitable trusts. Its member companies (as J.K. Tyre, J.K. Paper, J.K. Seeds,

Fenner, and others), employing nearly 50,000 persons are engaged in the

manufacture of a variety of products, as tyres, V-belts, oil seals, power

transmission systems, hybrid seeds, writing & printing papers, sugar, and in

diverse fields of commerce.

Trusts are devoted to promoting industrial, technical and medical research,

education, religious values and providing better living and recreational facilities.

Mr. Salil Singhal, Chairman & Managing Director

P I Industries Ltd., Gurgaon www.piindustries.com

PI Industries Ltd is in the business of Agri inputs, Fine Chemicals (Contract

Research and Manufacturing Services), Polymers and Engineering Services.

PI Industries is amongst the top 5 and fastest growing companies in polymer

compounding. PI Fine Chemicals has multi product plants and state of the art

manufacturing facilities spread over 90'000m2 areas. PI Agri Input is one of the

world's largest producers of generic molecules like Profenofos, Ethion, Phorate

etc.

Mr. O.P. Lohia, Chairman & Managing Director

Indo Rama Synthetics Ltd., New Delhi www.indoramaindia.com

Indo Rama Synthetics (India) Limited is the country’s largest dedicated polyester

manufacturer (at a single location), with an Integrated Manufacturing Complex at

Butibori, near Nagpur in Maharashtra producing Polyester Staple Fibre (PSF),

Polyester Filament Yarn (PFY – POY/DTY), Draw Textured Yarn (DTY) and

Textile grade Chips. Today, The Butibori plant produces close to 600,000

tonnes of PSF, POY, FDY, DTY and fibre grade chips.

Forbes magazine has recognized the group - Indo Rama Synthetics (India) Ltd.

and associate companies based in South-East Asia - as one of the ‘100 Best

Small Companies in the Emerging Markets’.



Mr. D.P. Agarwal, Vice Chairman & Managing Director

Transport Corporation of India Ltd., Gurgaon www.tcil.com

TCI Group with its 49 years of experience and a turnover of over Rs. 1200

crores (approx. USD 300 million) is India's integrated supply chain and logistics

solutions provider with a complete range of services. TCI Group has an

extensive network of over 1100 Company owned offices. An ISO 9001:2000

company, it is listed with premier stock exchanges like NSE and BSE.

Mr. Ravi Wig, Chairman

Wig Brothers Pvt. Ltd., Faridabad www.wigbrothers.com

One of its offshot is Wig Brothers Construction Pvt. Ltd. in New Dehli:

Constructing and building townships and fertilizer plants, cooling towers and

water treatment plants, airport and aultistoried buildings, power houses and civil

buildings.

Mr. Ravi Jhunjhunwala, Chairman & Managing Director

LNJ Bhilwara Group, Nodia www.lnjbhilwara.com

The LNJ Bhilwara Group is a diversified Indian business group with main

business interests in manufacturing of textiles, graphite electrodes, power

generation and business consulting. The Group employs about 25,000 people.

Annual turnover is around USD 700 million, with about 40% export share.



4. Feedback and Findings

The feedback to all three presentations was very good. The dual apprenticeship

education with task-sharing / cooperation between industry and vocational schools

was new for the participants. It took some time to let them understand the system and

its benefits. Discussions were animated with a number of questions.

We gathered especially the following information from the audience.

4.1 Role of Governments

Governments (state and central) are motivating industries to take over the ITI/ITC

– complexes. They try to pass the education task into private hands. As a

consequence large scale industries are starting own ITCs. For example Reliance

Industries Ltd. (India's largest private sector enterprise with a turnover of over

Rs.100,000 crores* and a net profit exeeding Rs. 10,000 crores) has built up their

own ITIs and Larson & Toubro (India’s largest infrastructure company in the

construction area) will be training 40’000 people every year by takeover of three

ITIs from the Gujarat government and establishing own ITCs. In addition, with

regard to the elections in 2008 with a possible government change (including

changes in leading staff), it is not realistic to get any essential assistance in the

foreseeable future from governmental authorities for an education project. The

missing commitment of the government will cause more difficulties: For the issue

of nationwide accepted certificates the support of the Ministry of Human

Resource Development (MHRD) is indispensable. It is not clear at the moment

how the successful involvement of the government should be initiated. The

involvement of the government will be a challenging and sensitive matter. An

essential help can only be expected when they understand the profit of the dual

apprenticeship education compared with the own ITI/ITC system.

*) 1 crore = 107 (Rs. 1,00,000 crore = approx. USD 24.5 billion)



4.2 Role of Industry

Two years for project phase 1 (tailored apprenticeship education for unskilled

workers of industry) and four years for project phase 2 (apprenticeship education

for adolescents after finishing class VIII, X or XII) is too long, and in their opinion,

not suitable for India. They compare with ITI's duration and with the fact that in

most large industries in-house training is being conducted. A duration of 1½ years

in project phase 1 and two to three years in project phase 2 could be acceptable.

A reduced period of education must not lead to an essential loss of quality

otherwise the introduction of the Swiss Dual System will not be successful.

One difference between the industry groups is evident: Small and medium

enterprises (SME) are solely interested in project phase 2 (apprenticeship

education for adolescents after finishing class VIII, X or XII). The interest among

the six industry leaders to participate in an education project was mixed: Some

would prefer project phase 1 and the other part project phase 2. To start the

phase 1 it must be evaluated whether enough industries are interested for the

selected trades. For starting with project phase 2, a large number of trades or

industries are needed for employing the trainees. We have to perform a

cost/benefit calculation in this regard, which can be presented and discussed at

the next meeting.

4.3 Role of Trade Associations

The existing trade associations are not yet well formed with respect to vocational

education in India and numbers of them are missing as yet. They have to be

established, organized and trained to take their responsibilities. At the moment we

do not see who will do this task. If we want the Swiss Dual System to be

successful in India, it is unavoidable that we overlook this problem.



4.4 Financing

Money for vocational schools in project phase 1 is no problem for large scale

industry.

In the SME group two main problems were obvious. The investment in

installations needed for the training and the reduction of the working hours of

employees who are appointed for a vocational education and training in phase 1.

The representatives of SME do not understand why industry should in project

phase 1 pay the full salary to the employees who are taking part. In contrast

employees chosen for phase 1 are working in industry at least for two years. If

their salary is reduced due to the additional education they will not be interested in

the project.

The involvement of the SME group should possibly postponed until project phase

2 (apprenticeship education for adolescents after finishing class VIII, X or XII)

comes into action so that the management can be convinced with facts and

results.

4.5 Teacher Training

Several questions were asked and discussed in connection with the teacher

training: Shall teachers (at last partly and for the initial stage) get their training in

Switzerland or would it be better to get trainers from Switzerland? What will be the

main focus of teacher training? What will be the qualification of the teachers, the

language and duration of training? How shall the training be financed?

According to JCF teacher training is mainly for how to coordinate the practical

learning in the trade and the theoretical teaching in vocational school. For this

purpose a number of appliances and infrastructure are required which are

available in Swiss vocational schools. The training in Switzerland is restricted to

profession/trade teaching and for the initial stage until this can be organized in

India by Swiss-trained Indian teachers.



4.6 Language of Teaching

All industry groups had the same understanding concerning the language of

teaching, that the teaching has to be in Hindi, but technical terms will be in

English, as this is the language used in industry. Class VIII finishers from

governmental schools will not speak or understand English fluently, hence a basic

course in English language has to be organised before or during the vocational

education. A long-term measure to remedy this problem could be a revision of the

curriculum of class VIII with more English knowledge.

4.7 Selection of Trades

The definitions of trades are varying in India and Switzerland. The auditors asked

for the list of 200 trades educated in Switzerland, which will be made available by

JCF in an English translation. The trades suggested in the presentation of October

2007 (Appendix) have to be confirmed or changed with industry. A procedure has

to be developed for selection of trades, in which SME (phase 2) and large scale

industry (phase 1 and 2) can do the practical training part in their business.



5. Summary

• The teaching language in vocational schools will be Hindi. This means the

respective curricula and regulations have to be translated from German to Hindi.

• The duration of vocational education and training (VET) has to be reduced, e.g. for a

Swiss VET program of four years to 1½ years in project phase 1 and to two to three

years in project phase 2. In spite of a reduced period of education we must avoid

an essential loss of quality.

• Small and medium enterprises (SME) are interested in project phase 2 whereas the

large scale industry is interested in both phases.

• When properly organized large scale industry can split the budgets for their ITCs

and support our project phase 1. JCF must clear up if phase 1 and 2 can be

started contemporaneously or phase 2 prior to phase 1.

• SME are hesitant to finance the vocational education but they understand that they

must face the problem of skilled workforce shortage (further discussion needed).

• Teacher's training was interesting for all groups, has to be well prepared and

organized.

• The trade associations in India must be strengthened.

• At the moment we can not expect any essential assistance by the governments.

• A lot of convincing will be required that a VET according to Swiss Dual System with

reduced duration is better than the Indian education in place.



6. Further Procedure

JCF has gained a lot of knowledge regarding industry's viewpoint of this topic: Their

requirements, problems in understanding Swiss Dual System benefits, difficulties of

leaving the traditional understanding that education is not their responsibility, and

financing the project without practically seeing the financial benefit out of it.

JCF has to prepare a detailed concept considering the problems mentioned above with

possible solutions and to set time points to implement the project. Such exposure shall

be presented again in India for consultation. Before starting the project we must make

sure a strong backing and willingness of the involved industries to participate.


Appendix - 17 - Status Report 2007

Presentation Slides

Appendix

to the Report:

Swiss Dual System in India

Status Report 2007

An Evaluation of Industry Requirements

regarding Apprenticeship Education in India

January 2008

































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Status R epor 007 - JCF Joshi Foundation · Swiss Dual System in India . Status Report 2007 . ... (India) Limited is the country’s largest dedicated polyester ... Transport Corporation