Saving Jobs :
Creating Jobs
-----------------------------------
Thank you , Shri Rajiv
Kumar [ NITI Aayog ]
Thank you for suggesting setting up of “ Labour Utilization Fund “
I refer to the following news report in today’s
Hindustan Times :
“ NITI aayog proposes scheme to save
jobs from automation “
Federal
think tank NITI Aayog has proposed that the government set up a labour utilization fund that will make the country’s
workforce more skilled and cost-competitive, encouraging businesses to hire more at a time when automation and the use of
artificial intelligence are making low-skill labour redundant.
NITI Aayog vice-chairman Rajiv Kumar
said in an interview that the government should consider setting up the fund, which will foot the bill for skilling workers
and providing them social security, making
workforce more cost-competitive for
the industry to employ.
Kumar suggested that instead of capital
subsidy for businesses, there was a need for labour
subsidy now.
“Just like that, we should have a labour utilization fund.
It
doesn’t have to pay salaries but can be used
for better training, for paying provident fund contribution and for
covering the health costs. In advanced economies, all these things are provided
by the public sector,” said Kumar.
Since social security benefits in India
do not match those in developed economies, there is a need for a dedicated
policy and schemes to lower labour costs,
said Kumar, adding that it will also help bridge income inequality in the
country.
“The objective of our policy should be maximizing employment generation. If you do
that, everything will fall in place,” said Kumar
Dear Shri Rajiv Kumarji :
While drawing up the details of the proposed “ Labour Utilization Fund “ , I request you to consider incorporation of my following suggestion ( sent earlier as Email )
I do hope you can convince Shri
Jaitleyji to announce this in his Budget Speech on Feb 01 , 2018
WHAT WOULD BE THE
RIGHT APPROACH ?
* Right approach would be : "
Do not give fish to a hungry man / teach him how to
fish "
In short , empower them to earn
their own living by teaching them " Skills "
and by
gaining " Experience " in use of those skills
Entire cost of this " Skilling " and " Experiencing "
to be borne by the Government , till
each targeted poor / unemployed person ,
either gets gainfully employed or becomes
self-employed
Should he choose to become Self-Employed ( by registering as a " Start Up " ),
exempt him from paying Personal Income Tax for next 10 years
------------------------------------------------------------------------------------------------
HOW TO TRANSLATE THIS
" SELF HELP " CONCEPT INTO PRACTICE ?
Divide the implementation in following 3 phases
* Empowering - 3 years ( Imparting
Skills in Industrial Training Institutes )
* Experiencing - 3 years ( Providing
experience in Ind / Commercial Establishments )
* Self-dependence Phase ( Working
in a gainful job or as Self Employed )
-------------------------------------------------------------------------------------------------
WHAT SKILLS WILL GET
PROVIDED IN ITI ?
Entire range of Manufacturing Industry
related skills being currently imparted plus a
whole host of commercial skills required
by E Commerce / Fintech / Agriculture
Processing / Payment Banks / Service
Sector / BPO / Telecom and emerging sectors
------------------------------------------------------------------------------------------------
HOW SHALL WE MOTIVATE
UNEMPLOYED YOUTH TO JOIN ITIs ?
* Each trainee will receive Rs 1000 pm ( for course duration of 3 years )
This amount will get deposited in Jan Dhan bank
account of trainee ( DBT )
HOW CAN WE GET PRIVATE
SECTOR PARTICIPATION IN THIS PHASE ?
* If a Private firm or individual
comes forward to set up such a Training Institute ,
# Treat it as an Infrastructure SPV
# No questions asked as to the source of funds for setting up such ITI
{ a kind of Amnesty Scheme to
convert Black Money into White Money
}
# A government grant of
Rs 1,000 pm per trainee to
such SPV ( DBT in Bank A/C )
If this is done , expect 10,000 SPVs to come up within one year and 10 million youth
to get trained each year !
HOW CAN WE GET
INDUSTRIAL AND COMMERCIAL ESTABLISHMENTS TO PROVIDE
EXPERIENCE TO TRAINEES
PASSING OUT OF ITIs ?
* Amend Apprenticeship Act
* Allow all Industrial and Commercial Establishments to
engage ANY NUMBER of
apprentices ( without upper
limit ) , for a period of 3 years
* Starting stipend = Min of Semi-Skilled wages (
currently , approx Rs 6,000 pm )
* Annual Increment = 5 %
* Establishment to pay 75 % of stipend
* Government to pay 25 % of stipend ( DBT into Jan Dhan account of the
Apprentice )
-------------------------------------------------------------------------------------------------
HOW CAN WE ENSURE A
" LEAKAGE PROOF " DISBURSEMENTS OF DBT AMOUNTS ?
* Through implementation of Mobile based
Attendance System , outlined in my blog,
" From BAD to MAD "
[ 01 Jan 2016
]
HOW WILL MY SUGGESTION
HELP ?
* It will solve the problem of
poverty organically / permanently
* It will prevent " Dependency Culture " ( looking up to
Sarkar Maa Baap for
everything )
* It will enable poor to retain
their " Self Respect / Dignity
"
* The money spent by government
will create highly productive " Human
Assets "
* It will overcome the " Skills Shortages " experienced by the
Economy
* It will create gainful " Self Employment " for millions of poor
* It will make India , a " Low Cost Economy " , able to export its
goods and services
* It will channelize Black Money
into a " Nation Building "
exercise
20 Dec 2017
www.hemenparekh.in
/ blogs
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