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Context:

The Central Apprenticeship Council recommends a 36% stipend increase for apprentices under NAPS and NATS.

News in Detail

The Central Apprenticeship Council (CAC), under the Minister of Skill Development and Entrepreneurship, proposes a 36% increase in stipends for apprentices under two key schemes: the National Apprenticeship Promotion Scheme (NAPS) and the National Apprenticeship Training Scheme (NATS).

This decision aims to make apprenticeships more attractive, reduce dropout rates, and help young people gain practical skills for jobs.

The stipend hike, if approved by the Union Cabinet, will raise monthly payments from the current range of Rs 5,000–Rs 9,000 to Rs 6,800–Rs 12,300 across five bands. 

Significance

Apprenticeships train young people by combining classroom learning with hands-on work experience. India’s apprenticeship programs, however, face challenges. Only 0.27% of India’s workforce participates in apprenticeships, compared to 3–4% in developed countries like Germany or the UK.

Many students, especially from rural and economically weaker backgrounds, drop out due to financial pressures. This stipend increase tackles these issues by making apprenticeships financially viable, encouraging more youth to join and stay in these programs.

What Are NAPS and NATS?

National Apprenticeship Promotion Scheme (NAPS)

Run by the Ministry of Skill Development and Entrepreneurship (MSDE).

Key Features & Benefits

• Inclusive Approach: Covers candidates from 5th grade to graduates
• MSME Focus: Special emphasis on Micro, Small, and Medium Enterprises
• Geographic Inclusion: Targets aspirational districts and Northeast region
• Direct Benefit Transfer: 25% stipend support directly to apprentice's bank account
• Employer Support: Up to ₹7,500 per fresher apprentice for basic training costs

Training Structure

• Basic Training: Up to 2 weeks for orientation and foundational skills
• On-the-Job Training (OJT): 6-36 months depending on trade complexity
• Third Party Aggregators (TPAs): Help match apprentices with suitable employers
• Aadhaar Integration: Mandatory e-KYC through Aadhaar for registration

National Apprenticeship Training Scheme (NATS)

Managed by the Ministry of Education.

Key Features & Benefits

• Duration: 6 months to 1 year based on trade specialization
• Certification: Certificate of Proficiency from Government of India
• Experience Recognition: Counts as valid work experience
• Registration: Can be registered at employment exchanges across India
• Training Venues: Central PSUs, State PSUs, and private companies with excellent facilities

Eligibility Criteria

• Minimum age: 16 years
• Educational qualification: Degree/diploma in engineering, technology, or vocational courses
• Indian citizenship required
• No prior work experience
• Not self-employed or government employee

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Source: 

INDIAN EXPRESS