Question 1

Industrial Training Institutes (ITIs) are entirely owned, funded, and managed by the Central Government.

Accepted Answer

ITIs are primarily established, funded, and managed by State Governments. The Centre provides national policy guidelines, affiliation through the NCVT, and partial funding via Centrally Sponsored Schemes.

Question 2

The World Bank and Asian Development Bank are funding the entire 60,000 crore scheme.

Accepted Answer

The multilateral banks are only co-financing 50 percent of the Central Government's share. This equates to Rs 15,000 crore out of the total Rs 60,000 crore outlay.

Question 3

Consider the following statements regarding the National Scheme for ITI Upgradation:
1. The scheme is entirely funded by the Central Government and Multilateral Development Banks.
2. It implements a hub-and-spoke architecture to upgrade 1,000 government Industrial Training Institutes.
3. The scheme includes the establishment of National Centres of Excellence at five existing National Skill Training Institutes (NSTIs).
How many of the above statements are correct?

Accepted Answer

(b) Only two — Statement 1 is incorrect because it is a Centrally Sponsored Scheme with a tripartite funding structure (Centre, States, and Industry). MDBs only fund 50% of the Centre's share. Statement 2 is correct (200 hubs and 800 spokes). Statement 3 is correct (Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana).

Question 4

Match List I (Component of ITI Upgradation Scheme) with List II (Target/Detail):
List I
A. Hub ITIs
B. Spoke ITIs
C. National Centres of Excellence (NCOEs)
D. Youth to be skilled over 5 years

List II
1. 5
2. 200
3. 800
4. 20 Lakh

Select the correct answer code:

Accepted Answer

(c) A-2, B-3, C-1, D-4 — The scheme targets the upgradation of 1,000 ITIs divided into 200 Hubs (A-2) and 800 Spokes (B-3). It upgrades 5 NSTIs into NCOEs (C-1) and aims to skill 20 Lakh youth over 5 years (D-4).

Question 5

Assertion (A): The National Scheme for ITI Upgradation mandates financial contribution from the industry and promotes an industry-led Special Purpose Vehicle (SPV) governance model.
Reason (R): The primary cause of high seat vacancies in ITIs over the last decade was a severe mismatch between traditional government-run vocational courses and the evolving skill demands of the private sector.
Select the correct answer:

Accepted Answer

(a) Both A and R are true and R is the correct explanation of A. — Assertion (A) is true as the scheme requires a Rs 10,000 crore industry contribution and pushes for SPV/PPP modes. Reason (R) is true and correctly explains A; because the skills taught were outdated, graduates were unemployable, leading to vacant seats. Forcing industry financial and managerial participation ensures the curriculum aligns with actual market demands.

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