The objective of the Scheme is to improve the quality of vocational training in the country and make it demand driven so as to ensure better employability of the graduates.
For Upgradation and Modernization of the Vocational Training System in the Country and with a view to impart employable skills to large number of youth so that they not only earn decent livelihood for themselves, but also become asset to the nation, a new Initiative taken by Govt. of India, is the upgradation of 1396 Govt. ITIs of the country into Centers of Excellence (CoEs) through Public Private Partnership between Year 2007-08 to 2011-12. Providing assistance interest free loan of Rs. 2.5 Crore to each IMC of Govt. ITI. In Gujarat 91 ITIs taken up for upgradation through public private partnership scheme between years 2007-08 to 2011-12. & 37 ITIs are upgraded into Centre of Excellence through World Bank and Domestic Funding out of 253 ITIs in Gujarat. So in all 128 ITIs are taken up for upgradation. It is indeed necessary to impart multi-skilled training to the trainees of remaining 125 ITIs of the State.
An Industry Partner is associated to lead the process of Upgradation. An institute Management Committee (IMC), headed by the Industry Partner, is constituted and registered as a Society. A memorandum of Agreement is signed among the Central Government, the State Government, the state government and the Industry Partner defining the roles and responsibilities of all the parties,An interest free loan upto Rs. 2.5 cr. Is given by the Central Government directly to the IMC on the basis of Institute Development Plan (IDP) prepared by it. The loan is repayable by the IMC in 30 years , with a moratorium of 10 years and thereafter in equal annual instalments over a period of 20 years. Under this scheme the IMC has been given financial and academic autonomy to manage the affairs of the ITI. The IMC is allowed to determine upto 20% of the admission in the ITI. The Industry Partner may provide financial assistance as well as machinery and equipments to the ITI. It shall arrange to provide training to instructors and on the job training to trainees. State Governments remain the owner of the ITIs and continue to regulate admissions.