To boost trade apprentices in India, the Ministry of Skill Development and Entrepreneurship has launched a unified operational framework for the apprenticeship programme under the Apprentices Act of 1961.

Under this scheme, the government has launched Third Party Aggregators (TPAs) under the Apprentices Act, 1961, with the aim to enhance the implementation of apprenticeship programs, especially within MSMEs. Currently, there are over 1 million trade apprentices across various sectors in India, a small fraction compared to the 100 million-strong formal workforce. Despite a mandatory minimum of 2.5% apprentice engagement for central and state public sector undertakings, many MSMEs struggle to participate due to limited training facilities, financial constraints, and inadequate staff. The potential for increasing apprenticeship numbers is significant, particularly in the MSME sector, which includes 2.1 million establishments with six or more workers.

To address these challenges, the Apprenticeship Act’s Section 8(2) allows multiple employers to collaborate in providing apprenticeship training. Additionally, the National Apprenticeship Promotion Scheme (NAPS), launched in August 2016, offers financial support to establishments.

TPAs are proposed to support MSMEs and other establishments, facilitating the engagement of a larger number of youth in apprenticeship programs. Eligible institutions must meet specific criteria, such as having a minimum of five years of experience in relevant fields and support from at least 20 establishments willing to engage apprentices.

The role of TPAs includes arranging basic training, assisting establishments in getting approvals for Basic Training Centers (BTCs), matching demand for apprentices, mobilizing and counseling candidates, and assisting in course design.

TPAs also handle administrative tasks such as uploading contracts and syllabi, submitting reimbursement claims, and ensuring apprentices comply with formalities for assessment exams.

Employers, even when engaging TPAs, retain core responsibilities, including entering into contracts with apprentices, providing on-the-job training, paying stipends, and organizing assessments and certifications. The guidelines emphasize that TPAs should not charge apprentices but may charge establishments for services rendered.

What are the Eligibility criteria for TPA(Third Party Aggregator) registration?

The eligibility criteria for registering as a Third Party Aggregator (TPA) are as follows:

• Registration: The institution or organization must be registered as a company, partnership, proprietary firm, trust, society, NGO, industry association, or chamber.
• Experience: The institution or organization must have at least five years of experience in areas such as industrial training, skilling, education, placement, non-profit activities, or as a registered industry association or chamber.
• Infrastructure: The institution or organization must have a registered office with an expert team and sufficient infrastructure to coordinate the apprenticeship program and design courses or curriculum in its domain area.
• Mobilization and Skilling: The institution or organization must have experience in mobilizing men, women, and youth for education, skilling interventions, facilitating wage or self-employment, or engaging in non-profit activities related to social or community development.
• Support Letters: The institution or organization must possess letters of support from at least 20 establishments willing to engage apprentices and appoint the applicant institution or organization as a TPA.
• Non-Blacklist Status: The institution or organization must not have been blacklisted by any organization and must self-declare this status in the prescribed template.

What is the Process of TPA(Third Party Aggregator) registration?

The process of registering as a Third Party Aggregator (TPA) involves several steps:

• Application Submission: Download the application form from the apprenticeship website (http://apprenticeshipindia.org). Fill out the application form and upload it to the portal along with the following documents:
• Registration documents.
  • Documents to establish compliance with the criteria related to experience, infrastructure, and mobilization activities.
  • Letters of support from at least 20 establishments willing to engage apprentices and appoint the applicant as a TPA.
  • Self-declaration stating that the institution or organization has not been blacklisted by any organization.
  • Until the functionality to upload documents on the portal is available, the completed application form and documents can be emailed to [email protected].
• Scrutiny and Approval: The Apprenticeship Division at NSDC will scrutinize applications to ensure they meet the basic eligibility criteria. Eligible applications will be reviewed by a committee chaired by the Joint Secretary (Apprenticeship) in the MSDE, comprising officers from MSDE, DGT, and NSDC.
• Field Verification: The committee may refer applications to RDAT, DGT, or the State Engagement Officer, NSDC, for field verification if necessary.
• Presentation: The committee may invite shortlisted applicants to make a presentation on a pre-fixed date if deemed necessary.
• Final Decision: The committee reserves the right to accept or reject any or all applications. The decision of the committee will be final and binding. The decision will be communicated to the applicant institutions or organizations online by the Apprenticeship Division at NSDC.
• Empanelment: Approved institutions or organizations will be empaneled for a period of three years.
  • The performance of empaneled TPAs will be periodically reviewed.
  • MSDE reserves the right to remove any institution or organization from the empaneled list if it is not performing well.
  • MSDE may also modify the terms and conditions for empanelment, and such modifications will be binding on the empaneled institutions or organizations.

What are the documents required for TPA(Third Party Aggregator) registration?

The documents required for Third Party Aggregator (TPA) registration are as follows:

• Registration documents of the institution or organization.
• Documents establishing compliance with eligibility criteria, such as experience, infrastructure, and mobilization activities.
• Tie up letters from at least 20 establishments willing to engage apprentices and appoint the applicant as a TPA.
• Self-declaration stating that the institution or organization has not been blacklisted by any organization.

Role of TPAs

The role of Third Party Aggregators (TPAs) includes various tasks to help run apprenticeship programs smoothly. These tasks are

1. Organizing Basic Training: Arrange basic training for new apprentices through approved training providers if the company prefers to outsource this training.
2. Helping with BTC Approvals: Assist companies in getting approval for Basic Training Centers (BTCs) if they are not already approved.
3. Choosing Training Locations: Select up to three places for apprentices to get practical training, ensuring these locations meet the required curriculum standards.
4. Matching Apprentices with Companies: Find suitable candidates to meet the demand for apprentices from companies.
5. Recruiting and Advising Candidates: Attract and guide candidates to join apprenticeship programs.
6. Designing Courses: Help companies design courses and ensure they meet national standards, especially if participating in the National Apprenticeship Promotion Scheme (NAPS).
7. Administrative Support: Upload apprenticeship contracts to the apprenticeship portal for official registration. TPAs will get login details for this task.
8. Uploading Course Details: Post the course syllabus and duration on the portal for the company.
9. Submitting Required Documents: File all necessary reports and returns on the portal for the company.
10. Claiming Reimbursements: Submit claims for reimbursement of apprentice stipends and training costs on behalf of the company.
11. Ensuring Exam Readiness: Make sure apprentices complete all necessary steps to be eligible for assessment exams.
12. Helping with Assessments and Certificates: Assist companies in conducting assessments and issuing certificates to apprentices. Help coordinate with assessment authorities if needed.
13. No Charges to Apprentices: TPAs will not charge apprentices any fees. However, they can charge companies for services like recruiting and administrative support to help run the apprenticeship program.
14. These responsibilities help TPAs support companies and ensure that apprenticeship programs run efficiently and effectively.

What is the minimum stipend rate payable to apprentices according to the prescribed Apprenticeship Stipend Rules?

The minimum monthly stipend payable to apprentices shall be determined based on the qualifications stipulated in the curriculum. The rates are as follows: