MSME Skill Development Scheme by Govt. of India

Introduction to Assistance to Training Institutions Scheme

The Assistance to Training Institutions (ATI) Scheme, launched by the Ministry of Micro, Small & Medium Enterprises (MSME), is a crucial initiative aimed at providing financial assistance to training institutions working in the MSME sector. The scheme is designed to enhance the physical infrastructure, promote skill development, and strengthen the overall capacity of training institutions across India. With a particular focus on supporting national and state-level institutions, the scheme plays a vital role in fostering the growth and development of the MSME sector.

The ATI Scheme enables institutions, such as the National Institute for Micro, Small, and Medium Enterprises (NI-MSME), as well as state-level Entrepreneurship Development Institutes (EDIs), to improve their infrastructure and training capabilities. By bolstering these institutions, the scheme seeks to create a skilled workforce that can meet the evolving demands of the MSME sector.

Objective of the Assistance to Training Institutions (ATI) Scheme

The primary objective of the ATI Scheme is to strengthen the capacity of MSME training institutions and enhance the quality of skill development training provided to entrepreneurs, industry staff, and trainees. This will, in turn, improve the overall productivity, innovation, and competitiveness of the MSME sector. Key objectives include:

• Upgradation of Infrastructure: Enhancing the physical infrastructure of training institutions, including setting up new branches or centres.
• Skill Development Training: Providing skill development training to staff of District Industries Centres (DICs), related government institutions, and the wider MSME workforce.
• Strengthening Capacity of National Institutions: Empowering national-level institutions like NI-MSME to undertake training initiatives that align with the Skill India Programme and National Skill Qualification Framework (NSQF).
• Research and Studies: Facilitating studies and research on MSME-related issues, thereby generating valuable insights for the sector.

Through these efforts, the ATI Scheme aligns with the government’s broader vision to enhance the employability of individuals in the MSME sector, contributing to the economic growth of the nation.

Key Benefits of the Assistance to Training Institutions Scheme

The ATI Scheme offers significant benefits to training institutions involved in the MSME sector. These include:

1. Financial Assistance for Infrastructure Development: The scheme provides financial support for the creation, strengthening, and expansion of physical infrastructure, such as training centres and equipment. The assistance is aimed at improving the capacity of training institutions to cater to the increasing demand for skill development in the MSME sector.
2. Support for Revenue Deficit: The scheme also extends support for meeting the revenue deficit of institutions such as NI-MSME, helping them maintain sustainable operations while delivering training programs to MSME entrepreneurs and employees.
3. Development of Training Materials and Equipment: Institutions can use the financial support to procure essential training equipment, develop training materials, and enhance their overall capabilities in offering skill development programs.
4. Skill Development for MSME Staff: The scheme helps in enhancing the skills of trainers, facilitators, and MSME staff, which will contribute to better training outcomes. This helps build a strong workforce that is better prepared for the challenges of the MSME sector.
5. Stimulation of Entrepreneurial Growth: The scheme not only provides training to MSME staff but also works to foster entrepreneurship by providing training to entrepreneurs on business management, technology adoption, and innovation, ultimately contributing to the growth of small businesses.
6. Development of Capability for Research: Institutions are given the tools and resources necessary to engage in research on MSME-related topics, helping inform policies and best practices within the sector.

Types of Assistance under the ATI Scheme

The financial assistance provided under the ATI Scheme can be classified into several categories, each designed to address specific needs of the training institutions:

1. Assistance to National and State-Level EDIs

• Maximum Assistance: State-level Entrepreneurship Development Institutes (EDIs) are eligible to receive a maximum financial assistance of ₹3.00 Crore. This financial aid can be used for developing physical infrastructure, purchasing equipment, training faculty, and building capabilities in the MSME sector.
• Usage: The financial assistance can be utilized for infrastructure development, faculty training, procurement of equipment, and capacity building for imparting skill development programs.
• Revenue Deficit: Assistance is also provided to meet the revenue deficit of institutions like NI-MSME, helping to sustain their operations.

2. Assistance for Training Programmes

• Skill Development Programmes: The financial assistance is provided based on the number of hours of training for NSQF-compliant courses.
  • Category I Courses: ₹38.50 per head per hour
  • Category II Courses: ₹33.00 per head per hour
  • Category III Courses: ₹27.50 per head per hour
• Training of Trainers (ToTs): A special rate of ₹60 per trainee per hour is provided for trainers who facilitate training programs.
• Program Costs: The financial support also covers overhead costs like hiring space, electricity, water, and other necessary resources for conducting the training programs.

3. Cost of Overheads

• The assistance also covers overhead costs such as motivation camps, project personnel deployment costs, post-training follow-up activities, and more, ensuring that training programs run smoothly and efficiently.

4. Residential and Travel Costs

• While trainees are expected to make their own arrangements for travel and stay, training institutions can charge for residential facilities. The scheme allows flexibility for institutions to seek additional reimbursement under other government schemes for travel, lodging, and stipends, provided there is no duplication of claims.

Eligibility Criteria for Assistance under the ATI Scheme

There are specific eligibility criteria for training institutions and EDIs to qualify for financial assistance under the ATI Scheme:

1. Eligibility for Training Institutions

• Institutions must be either under the Ministry of MSME or specifically involved in skill development for MSMEs.
• Institutions like NI-MSME, NSIC, KVIC, Coir Board, Tool Rooms/Technology Centres, and MGIRI are eligible for assistance under the scheme.

2. Eligibility for State-Level EDIs

• The State Government/UT must own and control the EDIs.
• The assistance will be directed towards existing EDIs that require infrastructure improvement, training aids, and capacity-building initiatives. However, assistance will not be provided for setting up new EDIs.

3. Eligibility for Training Programmes

• The assistance is available for training programs conducted by institutions such as NI-MSME, NSIC, KVIC, Coir Board, and others specifically focused on skill development in the MSME sector.

Application Process

The application process for the Assistance to Training Institutions Scheme is done offline and involves submitting proposals to the Ministry of MSME. Below is an overview of the application process:

Step 1: Submission of Proposals

• Proposals for financial assistance must be submitted to the Deputy Secretary/Director (EDI) at the Ministry of MSME, Udyog Bhawan, New Delhi.

Step 2: Proposal Review and Screening

• The proposals are reviewed by a Screening Committee, which evaluates the requirements and recommends the financial assistance needed.

Step 3: Approval and Release of Assistance

• After approval from the Secretary (MSME), administrative approval is granted to the applicant organization, and the funds are released accordingly.

Step 4: Compliance and Monitoring

• Institutions are required to submit progress reports and utilization certificates to ensure that the funds are used effectively. Extensions may be granted in case of project delays.

Documents Required for Application

To apply for financial assistance under the ATI Scheme, the following documents are required:

1. Copy of PAN Card
2. MSME Registration Certificate or Udyam Registration
3. Bank Account Details
4. Additional Documents: Any other documents as specified by the Ministry of MSME.

Conclusion

The Assistance to Training Institutions Scheme is a vital initiative for enhancing the training infrastructure and skill development capabilities of MSME-focused institutions across India. By providing financial support for infrastructure development, faculty training, and the creation of new training centres, the scheme aims to strengthen the capacity of MSMEs to train and develop a skilled workforce. This, in turn, supports the broader goals of fostering entrepreneurship, improving productivity, and ensuring the sustained growth of the MSME sector.

Eligible training institutions and EDIs are encouraged to apply for the assistance available under this scheme, which will play a critical role in improving the skills of individuals working within the MSME sector, ultimately contributing to the overall development of India’s economy.