National Apprenticeship Promotion Scheme (NAPS)

Introduction
The National Apprenticeship Promotion Scheme (NAPS) is a significant initiative by the Government of India, aimed at bridging the gap between theoretical knowledge and practical skills among the youth. Launched in August 2016, NAPS helps young people aged 16-24 who are not in employment, education, or training (NEET) to gain valuable work experience and skills through apprenticeships. This scheme benefits both employers and young job seekers, providing financial incentives to companies that hire apprentices and support for the apprentices themselves.

What is NAPS?
NAPS aims to provide job-specific training to workers through apprenticeships. It promotes apprenticeships across India by offering financial incentives, technological support, and advocacy. The program includes both basic and on-the-job training, ensuring apprentices gain practical experience in real workplace settings.

Why is NAPS Important?
India faces a growing unemployment problem, with the unemployment rate predicted to double from 4% to 8.3% by 2022, according to the OECD. This means millions of young people could be out of work, while businesses struggle to find skilled candidates for their vacancies. NAPS addresses this issue by allowing organizations to train fresh talent according to their needs, supported by government financial incentives.

Who Can Implement NAPS?
NAPS is mandatory for all industries with 30 or more employees (both contractual and regular). These industries must employ a minimum of 2.5% and a maximum of 15% of their workforce as apprentices. To participate, employers need to:

• Engage apprentices between 2.5% to 10% of their total workforce.
• Be registered with EPFO/ESIC/LIN/Udyog Aadhar.
• Have a TIN number.
• Register on the apprenticeship portal.
• Maintain an Aadhaar-linked bank account.

Components of NAPS Training
NAPS training consists of two parts: basic training and on-the-job training.

1. Basic Training: For individuals without prior training, the government shares the cost up to ₹7,500.
2. On-the-Job Training: Practical training at the workplace lasting from 6 to 36 months. This training uses the employer’s existing infrastructure and adheres to the Apprentices Act for both designated and optional trades.

Benefits for Employers
Employers gain numerous advantages by enrolling in NAPS, including:

• Exemption from EPF and ESI contributions for apprentices.
• Financial support covering 25% of the stipend, up to ₹1,500 per month per apprentice.
• Sharing of basic training costs up to ₹7,500 for apprentices without formal trade training.
• Reduced recruitment costs as trained apprentices quickly become productive.
• Opportunity to evaluate and retain talented apprentices.
• Flexibility in training duration from 6 to 36 months.
• Ability to hire apprentices from 2.5% to 15% of the workforce.
• Enhanced workforce productivity through industry-specific training.
• Fulfillment of Corporate Social Responsibility (CSR) by providing skill training.

Qualities of an Ideal NAPS Partner
An ideal NAPS facilitator simplifies the process of registering and managing apprenticeships. They should handle:

• Stipend administration.
• Basic training for apprentices (if needed).
• Mobilization and registration of applicants on the apprenticeship portal.
• Candidate payroll management.
• Access to designated and optional trades as per the Apprentices Act.

Conclusion
The National Apprenticeship Promotion Scheme plays a crucial role in developing a skilled workforce in India through practical, on-the-job training. This initiative by the Government of India helps reduce the skills gap by providing young people with a balanced mix of theoretical and practical experience, benefiting both the apprentices and the employers. Partnering with a NAPS facilitator can streamline the process, ensuring that businesses and young job seekers alike reap the full benefits of this valuable program.