A Sustainable solution for rebuilding Industrial stability : Vishwesh Kulkarni

The IMF (International Monetary Fund) has predicted a stringent global financial crisis due to the Covid -19 Pandemic. This may follow the resemblance of the ‘Great Recession’ that occurred in 1930s. Industries across all the sectors will face the repercussions of this crisis and will strive to minimize their loses and     re-establish their financial stability. In the efforts to reduce losses, the industries will try to cut cost on overheads in their expenditures. The Human Resources is one of the aspects of overheads expenditure and hence is a prime consideration for efficient cost reduction.

Although every industry prioritizes cost cutting on the Human Resources aspect, none of them can sustain without adequate Manpower. The Apprenticeship Scheme constituted by the Government of India is truly an efficient solution to this issue. The Scheme is completely secured by the Act and the minimum stipend prescribed under this scheme is substantially less over than the minimum wages. Apprentices under the Apprenticeship Act 1961, for Optional Trade Apprentices can be appointed for a period of 6 months to 36 months. The Central Government of India under the National Apprenticeship Promotion Scheme (NAPS) provides a financial incentive of Rs.1500/-per apprentice per month. This amount is given by the Government to encourage industries & establishments to engage apprentices and can very well from a great financial support amidst such a crisis. 

The Apprenticeship Scheme is also included as a CSR (Corporate Social Responsibility) initiative of an organization. The stipend incurred towards apprentices, any additional training costs incurred towards apprentices can be booked under the CSR heads of the organizations’ budget. During an acute crisis such as the one we are in, this could be a great support towards the financial stability of the organization.

The National Skill Development Corporation (NSDC) held a meeting for the   Third Party Aggregators (TPAs) amongst which Yashaswi Group was a part as well. Vishwesh Kulkarni, Chairman, Yashaswi Group attended this meeting alongside other senior members. Yashaswi proposed a few key suggestions to NSDC towards improving the credentials for Apprenticeship Scheme viz; The Government of India should increase the limit of appointing apprentices from 15% to 25%; the financial support extended by the Government to the SMEs and MSMEs for engaging apprentices should to be increased from Rs. 1500/- to Rs.3000/- per apprentice per month; The financial incentives should be issued and cleared at the earliest to ease operations for the organizations. The NSDC Officials responded positively towards all the suggestions made by Vishwesh Kulkarni.

The Apprenticeship Scheme and other similar schemes can effectively revitalize the industries across all the sectors in the near future; it will help the nation boost up its economic growth through the industrial sector.

(The Author is Chairman of ‘Yashaswi Group’ a leading organisation in the nation in the field of Skill Development and Apprenticeship)

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