Skill Development Schemes of the Government of India the Common Norms Committee constituted for the purpose makes the following changes further to amend the Schedules

## Report on Common Norms for Skill Development Schemes Fifth Amendment, 2021 **1. Executive Summary:** This report analyzes the "Common Norms for Skill Development Schemes Fifth Amendment, 2021," based on the provided government notification. This amendment modifies the original Common Norms for Skill Development Schemes, primarily concerning the base cost of training, mobilization costs, and boarding & lodging costs. Key changes include a 5% increase in base training costs across all sectors, clarification regarding mobilization cost distribution, and updated boarding & lodging reimbursement rates. The objective is likely to refine the financial aspects of skill development schemes, ensuring adequate compensation and addressing logistical needs. **2. Introduction:** This report aims to provide a comprehensive overview of the "Common Norms for Skill Development Schemes Fifth Amendment, 2021," as detailed in the provided notification. The analysis focuses solely on the information present within the given document. **3. Policy Overview:** * **Original Policy:** This amendment refers to and modifies the "Common Norms for Skill Development Schemes of the Government of India" as outlined in Notification No. H2201122014SDEI dated 15.07.2015 and further amended by Notification No. H2201122014SDE Vol.IV dated 11.11.2020. * **Core Objective(s):** Based on the text, the objectives of this amendment seem to be: * Adjusting the financial incentives for skill development training by increasing base costs. * Clarifying and standardizing the mobilization cost distribution process. * Modifying the reimbursement rates for boarding and lodging costs, potentially to reflect current market rates or regional variations. **4. Background and Rationale:** The amendment likely aims to address the following issues: * **Base Training Costs:** The 5% increase in base costs suggests a need to account for inflation or increased operational expenses faced by training providers. * **Mobilization Costs:** The detailed provisions regarding mobilization costs suggest that ambiguities existed in the previous guidelines, leading to potential disputes or inefficiencies in allocating these funds. * **Boarding and Lodging Costs:** The revised boarding and lodging costs, tied to city categories and special circumstances, indicate a need to provide more realistic reimbursements based on geographic location and trainee needs, particularly for women and persons with disabilities. **5. Key Provisions / Changes:** This amendment introduces the following key changes: * **Amendment to Clause 1 of SCHEDULE I of Annexure 1:** * **Change:** A new subclause 1.2 is added which increases the base cost for different sectors by 5%, rounded off to the next 10 paisa, of the amounts mentioned in Clause 1.1 of SCHEDULEI with effect from 01.01.2021 * **New Rule:** The new base costs, effective January 1, 2021, are: * Rs. 49.00 per hour of training for trades/sectors listed in Category I of SCHEDULE II. * Rs. 42.00 per hour of training for trades/sectors listed in Category II of SCHEDULE II. * Rs. 35.10 per hour of training for trades/sectors listed in Category III of SCHEDULE II. * **Effect:** This directly increases the per-hour compensation for training providers under the skill development schemes. * **Amendment to Clause 1 of SCHEDULE I of Annexure 1:** * **Change:** Subclauses 1.3 and 1.4 are added regarding mobilization cost. * **New Rule:** Mobilization cost will be paid to the agency conducting mobilization activities. * 3 is the mobilization cost where the training target is greater than 1,000. * 4 is the mobilization cost where the training target is less than 1,000. * The training partner can receive 1/3 or 1/4 of the mobilization cost if they assist the mobilizing agency. * Mobilization costs are shared proportionately between agencies when multiple agencies mobilize. * **Effect:** Clarifies how mobilization costs should be managed and allocated between training partners and mobilization agencies. * **Amendment to Clause 3 of SCHEDULE I of Annexure 1:** * **Change:** Clause 3 is substituted with a new definition regarding Boarding and Lodging Costs. * **New Rule:** Ministries will reimburse Boarding Lodging Costs up to a maximum per trainee per day as per the table: * X Category Cities/Town per day per Trainee Rs.375 * Y Category Cities/Town per day per Trainee Rs.315 * Z Category Cities/Town per day per Trainee Rs.250 * Rural Areas and any Area not notified as a municipal town area Rs.220 * These costs are for residential training, trainees from special areas trained outside these areas, or women and persons with disabilities who have to travel more than 80 kms (40kms in special areas) to reach the nearest training center and are availing boarding and lodging arrangements. * **Effect:** Provides a tiered system for reimbursing boarding and lodging costs based on location, potentially ensuring more adequate coverage in higher-cost areas. **6. Target Audience and Stakeholders:** The target audience and stakeholders directly affected by these changes include: * Training Providers involved in skill development schemes. * Mobilization Agencies. * Trainees participating in skill development programs, especially those from special areas, women, and persons with disabilities requiring boarding and lodging. * The Ministry of Skill Development and Entrepreneurship, which oversees and funds these schemes. * Government bodies responsible for implementing and monitoring the skill development programs. **7. Implementation Aspects (Inferred):** * **Responsible Agency/Bodies:** The Ministry of Skill Development and Entrepreneurship is the primary responsible agency. The Common Norms Committee plays a role in formulating these changes. * **Timelines/Procedures:** The increased base costs are effective from January 1, 2021. The notification implies that existing procedures for reimbursement and allocation of funds need to be adjusted to reflect these changes. * **Amendment Specific:** Training providers and mobilization agencies will need to establish clear agreements on the division of responsibilities regarding mobilization to ensure fair allocation of costs. Ministries will need to update their reimbursement processes to reflect the new boarding and lodging cost structure, categorized by city type. **8. Expected Outcomes / Impact of Changes:** The expected outcomes of these amendments include: * **Increased Training Quality:** The increased base costs may incentivize training providers to invest in better resources and instructors. * **Improved Mobilization Efficiency:** The clearer guidelines on mobilization costs could lead to more effective recruitment and enrollment of trainees. * **Enhanced Trainee Accessibility:** The revised boarding and lodging provisions should make training more accessible to individuals from remote areas, women, and persons with disabilities. * **Financial Clarity:** More transparent and standardized financial processes, reducing disputes and improving accountability. **9. Conclusion:** The "Common Norms for Skill Development Schemes Fifth Amendment, 2021" represents a significant update to the financial and logistical aspects of skill development programs. By adjusting base costs, clarifying mobilization responsibilities, and revising boarding & lodging reimbursements, the amendment seeks to improve the efficiency, effectiveness, and accessibility of skill development initiatives across India. Industry stakeholders should familiarize themselves with these changes to ensure compliance and maximize their participation in these schemes.

Key Entities Referenced