Skill Development Initiative - Ministry of Labour and Employment - 07.12.2011

Imparting Vocational SkillsIn accordance with the National Policy on Skill Development Government has set a target of skilling 50 crore people by 2022.

Planning and Performance Division, Ministry of Science & Technology has taken initiative to set up an Academy of Scientific and Innovative Research.

A Bill for setting up Academy of Scientific and Innovative Research (AcSIR) has been passed by Lok Sabha on 5/9/2011. The Bill is presently under consideration by Rajya Sabha. AcSIR is being set up as an ‘Institution of National Importance’ focussing on research and imparting instruction in interdisciplinary domain of science and technology through a combination of innovative and novel curricula, cross-disciplinary knowledge, pedagogy and evaluation. The Academy shall primarily focus on research and imparting instruction in such areas as are not ordinarily taught in regular academic universities in India.

Directorate General of Employment & Training, Ministry of Labour & Employment has formulated following schemes for imparting vocational training throughout the country including metros, and providing financial assistance to State Governments/ UTs:

(i) “Skill Development Initiative (SDI)” based on “Modular Employable Skills (MES)” : The objectives of the scheme are to provide vocational training to school leavers, existing workers, ITI graduates, etc. to improve their employability by optimally utilizing the infrastructure available in Govt., Private institutions and the industry. Existing skills of the persons can also be tested & certified under this scheme. 100% Training and assessment cost is reimbursed to successful candidates.

(ii) Upgradation of 100 ITIs with Domestic Funding : under the scheme 100 ITIs from 22 States/UTs were taken up for upgradation into Centre of Excellence at a total outlay of Rs.160 crore. Centre and State share being 75:25.

(iii) Vocational Training Improvement Project: Under the scheme 400 ITIs from 33 States were taken up for upgradation (CoE/ General Upgradation) with total outlay of Rs.1581 crores. Centre and Share being 75:25 (90:10 for NE States). The Scheme inter-alia includes Training of Trainers, innovation, developments etc.

(iv) Upgradation of 1396 Government ITIs through Public Private Partnership: The scheme was launched in 2007-08 to improve the employment outcome of graduates from the vocational training system. Under the Scheme, an Industry Partner is associated with each Government ITI to lead the process of upgradation. An Institute Management Committee is constituted with Industry Partner as its Chairperson and registered as a Society. Interest free loan of Rs. 2.5 cr. is given to the IMC. Financial and academic autonomy is given to the IMC to manage the affairs of the ITI.

(v) Skill Development of 34 Districts Affected by Left Wing Extremism: under the scheme,34 ITIs & 68 Skill Development Centers (SDCs) are proposed to be established with 75% central share and 5340 youth are proposed to be trained in various skill training programmes with 100% central assistance.

(vi) Enhancing Skill Development Infrastructure in North Eastern States & Sikkim : Under the scheme 100% Central assistance is being provided to upgrade 20 existing ITIs and supplement infrastructure deficiency of 28 existing ITIs in all North Eastern States including Sikkim.

The Union Labour & Employment Minister Shri Mallikarjun Kharge gave this information in a written reply in Rajya Sabha today. 

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Everonn may receive $100 million investment - Carlyle Group and New York Capital Partners - largest PE deal in education

Everonn Education, India’s largest technology-enabled education firm, is getting ready to enroll more global marquee investors.

Two months after the Dubai-based Varkey Group came on board, global private equity majors — Carlyle Group and New York Life Capital Partners — are in advance talks with the company to pick up a stake, said two people following the development. Once completed, it could be the largest private equity (PE) investment in the Indian education space till date.

According to these sources, the initial diligence is over and negotiations are underway to formalise the final deal structure, which may see an investment of over Rs 500 crore ($100 million) through a combination of primary and secondary market transactions.

Everonn’s promoters are likely to dilute their stake in the company and may even issue fresh shares to these two new financial investors. Carlyle and New York Life Capital are likely to invest in the listed company – Everonn Education — and may also pick up strategic stakes in the underlying subsidiaries Everonn Medical Education and Everonn Skill Development.

Everonn Skill Development is a joint venture between the company and National Skill Development Corporation, which has a 27 per cent stake. Everonn owns the residual 73 per cent.

An email to Everonn Education remained unanswered. When contacted, Devinjit Singh, managing director, Carlyle Asia Partner told Business Standard, “I cannot comment on specific transactions.”

New York Life Capital Partners spokesperson did not respond to an email query.

According to shareholding data of September, the total promoter shareholding in the company stands at 42.28 per cent. Of which, SKIL Infrastructure, promoted by Nikhil Gandhi, is the largest shareholder with 20.83 per cent stake.

P Kishore, the  founder of the company, has 8.52 per cent, show data available with the exchanges. In September, following Kishore’s arrest for bribing a tax official, Varkey Group, a $2.5-billion education company that runs Gems Education brand, agreed to buy a strategic 12 per cent equity for Rs 138 crore. They were to subsequently up their stake to 38 per cent via an open offer. The offer is now expected to be launched early December after the earlier plans got deferred.

Everonn stock closed at Rs 321 per share on Thursday, down four per cent. Its current market cap stands at Rs 617 crore.

Everonn, known for its pioneering work in e-learning solutions for schools and virtual classrooms, has had a series of financial investors like Blackstone, Reliance ADAG Group and New Vernon in its 20 year history. New Vernon India is still an investor with a 5.12 per cent stake. However, most of them have pared their stake since Everonn’s founder was arrested on bribery charges.

Interestingly, Carlyle, too, had burnt its finger in the Indian education space before. In 2000, Carlyle Asia Venture Funds had acquired 15 per cent stake for $2.5 million in Educomp Datamatics. But in 2005, it exited making losses of 94 per cent.

Everonn serves schools with web-based classes as well as the competitive exam guidance. Its customer base includes over eight million students through 10,139 learning centres across 27 states.

The Indian education sector has of late seen a spurt of PE investments. In 2011 alone, private equity and venture capital investors have pumped to $93 million in 10 education companies.