India - Second Technician Education Project

D)ocument of The World Bank F'OR ()FFItIA I. t SF ONLY Report No. QO* 3-I N STAFF APPRAISAL REPORT INDIA SECOND TECHNICIAN EDUCATION PROJECT MARCH 8, 1991 Asia Country Department I\ (India) Population, Human Resources, Urban and Water Operations Division This document has a restricted distribution and man be used bv recipients only in the periornnance of their official duties. Its contents man not otherwise be disclosed wAithout W'orld Bank authorization.  CURRENCY EQUIVALENTS (As of January 1991) Currency Unit = Rupee Rupee 19.43 = US$ 1.00 Rupee 1.00 = US$ 0.051 METRIC EQUIVALENTS 1 Meter (m) = 3.28 Feet (ft) 1 Kilometer (km) = 0.62 Miles FISCAL YEAR April 1 - March 31 ABBREVIATIONS AICTE - All India Council for Technical Education BTE - Bureau of Technical Education DEA - Department of Economic Affairs, Ministry of Finance DGS&D - Directorate General of Supplies and Disposals DOE - Department of Education, Ministry of Human Resources Development DTE - Directorate of Technical Education DPR - Detailed Project Reports EFC - Expenditure and Finance Committee, Ministry of Finance EDCIL - Education Consultants India Ltd. GOI - Government of India IAMR - Institute for Applied Manpower Research IIT - Indian Institute of Technology ITI - Industrial Training Institute MHRD - Ministry of Human Resources Development NBA - National Board of Accreditation NTMIS - National Technical Manpower Information System NPE - National Policy on Education (1986) NPIU - National Project Implementation Unit PFU - Project Facilitation Unit TTTI - Technical Teacher Training Institute SPIU - State Project Implementation Unit  FOR OFFICIAL USE ONLY INDIA SECOND TECHNICIAN EDUCATION PROJECT Table of Contents Page No. BASIC DATA ........ iv CREDIT AND PROJECT SUMMARY ......................................... v I. TECHNICIAN EDUCATION IN INDIA A. Introduction ............................................. 1 B. Organization of Technical Education ...................... 2 C. Management and Administration of Technical Education ..... 3 D. Problems and Issues in Technician Education ............... 3 II. GOVERNMENT POLICIES, PLANS AND PROGRAMS IN TECHNICAL EDUCATION A. National Policy On Education .............................. 4 B. The Eighth Five-Year Plan (1990-94) ....................... 5 C. The Ten-Year Technician Education Investment Program (1990-99) ................ ....................... 5 D. Financing of Technician Education ........................ 6 E. External Financing of Education ........................... 6 F. IDA Role and Sector Lending Strategy ..... ................ 7 III. THE PROJECT A. Goals and Objectives ..................................... 8 B. Scope ............ ........................................ 10 C. Capacity Expansion ....................................... 10 D. Quality Improvement ................. I ..................... 13 E. Efficiency Improvement ................................... 14 IV. COSTS, FINANCING, IMPLEMENTATION AND DISBURSEMENTS A. Costs ............ ....................................... 16 B. Financing Plan .......................................... 18 C. Recurrent Cost Implications ............................. 18 D. Status of Preparation ................................... 18 E. Project Management/Implementation ....................... 19 F. Monitoring, Review and Evaluation ....................... 21 G. Disbursements ........................................... 21 H. Procurement ......... .................................... 22 I. Accounting and Auditing ................................. 24 This report is based on the findings of an Appraisal mission from November 28- December 14, 1990. Mission members were Mr. R. Cambridge (Principal Economist, Team Leader), E Sigl (Technical Educator), Ms. A. Nazareth (Educational Planner), and E. Dib (Architect, Consultant). Ms. M. Chatterji, (Secretary NDO) and Ms. S. Pak assisted in preparing the Report. The processing of the project was supervised by Mr. R. Skolnik, Chief, Population, Human Resources, Urban and Water Operations Division (AS4PW) and Mr. H. Vergin, Director of the India Country Department. This document has a restricted distribution and may be used by recipients only in the performance of their official duties Its contents may not otherwise be disclosed without World Bank authorization.  ii - Page No. V. BENEFITS AND RISKS A. Benefits ................................................. 24 B. Risks ............ ....................................... 25 VI. AGREEMENTS REACHED .......................................... 25 TABLES 3.1 Objectives, Investments and Desired Outcomes .... ............ 9 4.1 Project Costs by Component .................................. 17 4.2 Project Costs by Categories of Expenditure ................... 17 4.3 Procurement Method .......................................... 23 ANNEXES 1. Government Polytechnics by Project State showing Annual Enrollments (1988/89) ..................................................... 27 2. Guidelines for Recogniti3n of Private Polytechnics ............ 28 3. The Technical Education System in India ....................... 29 4. Problems and Issues in Technical Education .................... 34 5. The Ten-Year (1990-99) Technician Education Investment Program 40 6. Present Fee Structure at Polytechnics in Project States ....... 42 7. Criteria for Selection of States .............................. 43 8. Detailed Project Components by State .......................... 45 9. Summary of New Technology Courses to be Offered ............... 46 10. New Co-educational Polytechnics by State ...................... 49 11. Multi-Point Entry and Credit System ........................... 51 12. Continuing Education Centers and Departments by State ......... 54 13. Community Polytechnics by State ............................... 56 14. New Women's Polytechnics by State ............................. 58 15. Summary of Civil Works Program ................................ 59 16. Additional Places Created in Polytechnics by State ............ 60 17. Teacher Training and Faculty and Staff Development Program .... 61 18. Schedule of Deployment of Key Additional Staff ................ 62 19. Staff Development linked to Career Development ................ 72 20. Industry-Institute Interaction Programs by State .............. 78 21. Technical Assistance Program .................................. 83 22. Project Costs Summary Costs by Components and Time .......................... 85 Summary Costs by Categories of Expenditure and Time ........... 86 Summary Costs by Component and Categories of Expenditure ...... 87 23. Financing Plan by Component and by Categories of Expenditure. 88 24. Recurrent Cost Implications .................................. 90 25. Civil Works, Furniture and Equipment Procurement and Implementation Schedules ..................................... 91 26. Key Indicators ................................................ 92 27. Project Supervision Plan ...................................... 93 28. Forecasts of Expenditures and Disbursements ................... 100 29. Selected Documents and Data Available in the Project Files .... 101  - iii - Page No. DIAGRAMS/CHARTS 1. Articulation of the Education System ...... .................. 103 2. Technical Education System in India ......................... 104 3. Organizational Structure of Technical Education .............. 105 4. AICTSE and its Organizations ......... . ........................ 106 5. Organizational Structure of NPIU ............. 107 6. National Project Directorate at BTE .......................... 108  - iv INDIA SECOND TECHNICIAN EDUCATION PROJECT Basic Data /a General Population (million) 1988 848 Annual Growth (Z) 2.2 Urban Population (Z of total) 25 GNP per capita (US$) 270 Population below poverty line (Z) (1983) 37 Employment in the Organized Sectors (1986) Million Percent Agriculture i.4 6 Industrial Sectors /b 12.4 49 Service Sectors 11.3 45 Labor Force Participation Rate _1986) Male Female Total Participation rates (Z) 55 21 39 Labor Force by Education Level (Z) Primary & Below Secondary Higher 80 15 5 Number of Vocational Training and Technical Education Institutions, Enrollments and Output (1986-87) No. of Annual Type Institutions Enrollments Output Industrial Trg. Institutes (ITI) (Government) 852 228,278 80,350 ITI (Private) 1,035 98,831 25,327 Advanced Voc.Trg. Schools 22 10,000 10,000 Secondary Voc. Schools 1,500 72,000 26,000 Polytechnics (AICTE approved) 467 194,000 68,000 State Eng. Colleges (SEC) 272 100,000 25,000 Regional Eng. Colleges (REC) 17 21,000 5,500 Indian Inst. of Technology (IIT) 5 4,000 1,300 Apprenticeship Training 139(trades) 131,486 49,'00 Ministry of Human Resource Development:Budget Allocations (US$ million) Department of Education Plan Non-plan Budget Estimates (1989-90 Revised) 463.5 382.0 Budget Estimates (1990-91) 510.7 441.1 ta Sources: Ministry of Manpower & Ministry of Hunan Resources Development (unless shown otherwise). /b Includes mining and quarrying, manufacturing, construction, public utilities, and transport and communications. Includes employment in establishments of 10 workers or more.  - v - INDIA SECOND TECHNICIAN EDUCATION PROJECT CREDIT AND PROJECT SUV1MARY 3orrower: India, acting by its President leneficiaries: Governments of Andhra Pradesh, Assam, Haryana, Himachal Pradesh. Maharashtra, Punjab, Tamil Nadu, and West Bengal and The Union Territory of Delhi .mount: SDR 213.5 million (US$307.1 million equivalent) rerms: Standard, with 35 years maturity )nlending Terms: Government of India (GOI) to Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Maharashtra, Punjab, Tamil Nadu and West Bengal and the Union Territory of Delhi: in accordance with standard arrangements for development assistance to States and Union Territories for the development of education projects on terms and conditions applicable at the time. )escription: The goa. of the project is to support the National Policy on Education, and more specifically, the Ten- Year Technician Education Investment Program (1990- 99). The project is a second phase of IDA's commitment to support the national Polytechnic System and the Ten-Year Investment Program which seeks its modernization and the reform of the policies which constrain the system's flexibility to respond to the changing needs of industry and society. The' project would be identical to the First Technician Education Project (Ln 3195-IN:Cr 2130-IN) and would have the same major objectives: Capacity Expansion which would be achieved by expanding and diversifying programs in about 240 new and existing institutions, so that they can undertake with flexibility, courses in new and emerging technologies, conventional and advanced technician engineering, and continuing education diploma courses. Special attention would also be given to expanding and improving training opportunities for women, rural populations and the informal sector by establishing new Women's Residential Polytechnics, upgrading Coeducational Polytechnics to create more opportunities for women, and expanding the number of Community Polytechnics. Quality Improvement would be achieved through modernizing the equipment and facilities of  - vi - Polytechnics, expanding and imprcving the quality of training cf Polytechnic teachers and undertaking curriculum development activities. Efficiency Improvement would result from strengthening State Directorates and Boards of Technical Education, granting academic autonomy to selected Polytechnics, undert,ting Industry-Institute Interaction programs in each Polytechnic, encouraging internai revenue generation in Polytechnics and establishing equipment and facility maintenance systems. Benefits and Risks The proposed project would provide India's industrial sector with technicians of suitable quality in the areas of civil, mechanical, and electrical engineer- ing, as well as in computer and electronics technology and in other required new and emerging areas. The emphasis to be given to continuing education programs recognizes that the system must also serve the rural and informal sectors anu update the current stock of employed technicians. Expanded programs for women also means that serious efforts are underway to more fully integrate women into modern sector wage employment. Ultimately, the major benefit of the project beyond the numbers of students trained, is that it would continue the policy reforms that were initiated by Government and started under the first Technician Education project, and support as well, institutional development processes such as the introduction of flexibility in student entrance and graduation requirements, career development for teachers, curriculum development to develop new courses and training techniques and the institu- tionalization of maintenance, internal revenue generation and career counselling and employment programs. These changes would facilitate the ability of the system to respond to a rapidly changing environment, and would contribute to the technology transfer objective which is a key aspect of development. The major risk facing the project concerns the ability of individual States to undertake integrated programs of both policy reform and physical development. This risk would be mitigated by the Annual Action Plans to be prepared by each participating State, the Detailed Project Reports to be prepared by each Polytechnic, by enhancing and  - viI, - stre.tgthening the Directorates and Bcards of Technical Education in each of the implementing States, the support to be provided to them by the Technical Teacher Training Institutes (TTTIs), and the key role to be played by the strengthened central institutions, i.e., the Bureau of Technical Education (BTE), the National Project Directorate and the National Project Implementation Unit (NPIU). Estimated Costs: Components Local Foreign Total - --US$ million---- Capacity Expansion 121.62 35.40 157.02 Quality Improvement 99.33 38.82 138.15 Efficiency In.provement 25.30 4.30 29.60 Total Base Cost 246.25 78.52 324.77 Contingencies 19.15 18.18 37.33 Total Project Cost* 265.40 96.70 362.10 * including taxes and duties of US$10.7 million. Financing Plan: States 29.80 - 29.80 GOI 25.20 - 25.20 TDA 210.40 96.70 307.10 Total 265.40 96.70 362.10 Estimated Disbursements: FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 13.3 34.3 60.4 61.7 46.6 36.7 33.2 15.9 13.3 52.6 113.0 174.7 221.3 258.0 291.2 307.1 Economic Rate of Return: Not Applicable.  - 1 - INDIA SECOND TECHNICIAN EDUCATION PROJECT I. TECHNICL'.N EDUCATION IN INDIA A. Introduction 1.01 India is in the process of modernizing its industrial sector. Tthe kky aspects of these de.jelopments include the importation of new technologies f(r the design and production of durable goods, the reorganization of industrial managempnt and the restructuring of public enterprises. To achieve this, a number of steps have been taken to reform the overall policy regime and make it more conducive to the promotion of competition, modernization, and cost efficiency, with an emphasis on easing entry or expansion of incunbent firms, anid the recognition of efficient scales of production. The shortage of technically educated people and people with high quality industrial skills is a major impediment to India's industrial development. The technical education systenl has grown enormously in the past few decades. It has also diversified extensively. Yet, it faces today a number of important problems that limit its potential contribution to increased industrialization. First, significant segments of the cural population and women have only limited access to the system. Second, the quality and efficiency of the system are low. There is a shortage of qualified teachers, training materials are lacking, equipment is obsolete, and courses are not as relevant to modern sector industry as needed. As a result, student repetition is high and the system is not producing educated people of the type, quality or quantity needed. 1.02 The Government of India (GOI) is placing increasing emphasis on human resource development and the alleviation of poverty. Substantial progress has been achieved as indicated in the rise of the literacy rate from 172 in 1951 to 36Z in 1981, and for women it rose from 8% to 25Z in the same period. In spite of these achievements, the number of illiterates grew from about 200 million to 400 million over the same period and for the age group 10-14, the literacy rate rose only from 23% in 1951 to 25Z in 1981. In comparison with other developing countries in the region, India's social services are still less effective and extensive. The adult literacy rate, for example is well below Malaysia (732) and China (76%). In addition, the primary school enrollment ratio is only 79% in India compared to the attainment of close to Universal Primary Education for the appropriate age group in Malaysia, China, Korea and Thailand. It is important to note however, that within India, there are considerable variations among regions. 1.03 In 1986, the GOI formulated a National Polcy on Education (NPE) which includes a Ten-Year Technician Education Investment Program (para 2.06) for the upgrading of the technician education and training system. That program would introduce new diploma programs with the emphasis on new and emerging technologies, expand programs for women and rural populations as well as continuing eduzation programs aimed at upgrading already employed technicians. It would also improve the quality of these programs by strengthening teacher training programs, curriculum development, examination and student assessment systems, and modernizing the workshops, laboratories and classrooms of the Polytechnics. Finally, it would improve the efficiency of the technician education system by strengthening the All India Council for Technical Education (AICTE), the four Technical Teacher Training Institutes (TTTIs), the Bureau of Tec'Lnical Education (BTE) in the Department of Education (DOE), the State Boards and Directorates of Technical Education, granting academic autonomy to selected  Pn1Iyte(II hi(-, and further strengthening the National Technical Manpower Ir:ioxmnation System (NTMIS) and the National Board of Accreditation (NBA). 1.04 The proposed project would support the Ten-Year Technician Education Investment Program in eight States: P.ndhra Pradesh, Assam, Haryana, Himachal iradesh, Mahiarashtra, Punjab, Tamil Nadu, West Bengal and in the Union Territory of New Delhi; and would be the second phase of the IDA's commitment to support tthe m)odernization of the national Polytechnic system as well as the reform of policies which constrain the system's ability to respond flexibly to the changing needs of industry and society. It would be identical in content to the first Techrnician Educatior Project (Ln 3195-IN/Cr 2130-IN) of May 1990 which covered eight States i.e. Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Orissa, Rajasthani and Uttar Pr,.desh. Its special features would be the same as the first project and include (a) expanding the opportunities for women in modern sector training and employment; (b) increasing linkages between Polvtechnics and industry; (c) recognizing that maintenance programs are concomitant with investments in new equipment and facilities; (d) improving internal revenue generation in the Polytechnic system; (e) inttoducing flexibility in entrance and curriculum requirements into the existing rigid three-year diploma programs; and (g) the systematic training of teachers and introduction of a career development system. The two Technician Education projects would cover about 61Z of the Polytechnics in the national system, but almost all of the public sector (AICTE- approved) Po'ytechnics. The background to the project and related details are described below. B. Organization of Technical Education 1.05 Industrial workers in India are developed through public and privately financed education and training institutions, apprenticeship-type training, and in-plant training. The publicly financed technical education system operates at three levels and this is shown in Charts 1 and 2. At the apex of the system, the five Indian Institutes of Technology tIITs) offer undergraduate and graduate programs in engineering with a total annual admission of about 1,300 students. At the next tier, there are 17 Regional Engineering Colleges (RECs) which admit about 5,500 students each year. These institutions are jointly financed by the Central Government and the States. There are also 272 State Engineering Colleges (SECs) with an intake capacity of about 59,400 students. Of these, 97 are affiliated to local universities and financial assistance is prov_.ded by State Governme,;ts. There are also 167 private Colleges but about 25? of them receive assistance from the States and allocate about 802 of their seats to candidates nominated by the States. Most of these institutions also charge capitation fees ranging from Rs.50,000 to Rs.l00,000 per year. At the next level, there are 767 Polytechnics which provide three-year diploma courses in civil, mechanical and electrical engineering. Of these, 367 are government approved and financed with an intake capacity of about 52,000 students. Another 100 private Polytechnics receive grants from the States, follow the curricula prescribed by the State Boards of Technical Education, and have a total annual intake capacity of about 15,000. The remaining 300 are self-run private Polytechnics. Polytechnics in the eight project Stares and New Delhi showing enrollments (1988/89) are shown in Annex 1. In the southern States, there are about 300 self-financed Polytechnics with an estimated intake cf about 48,000. These institutions are not approved by the Government, and they charge capitation fees which range from Rs. 5,000 to Rs. 40,000 per student. However, the All India Council for Technical Education (AICTE) has established a number of guidelines as outlined in Annex 2 by which these private Polytechnics will be able to receive official recognition, Center and State financial assistance, and become an integral and important part of the  national Polytechnic system. Instructors for the Polytechnics are trained at four centrally financed Technical Teachers Tra'Liing Institutes (TTTIs). The TTTIs also provide assistance to the States in the areas of curriculum. development and implementation, distance education and the introduction of new courses and methodologies of training. Certificate-level craftsman trade courses are offered to about 325,000 students annually through 1,887 industrial Training Institutes (ITIs). Only 652 of these institutions are publicly financed and operated by the Directorate General of Employment and Training (DGET) in the Ministry of Labor. The other ITIs are private institutions. Lastly, there are about 1,500 Vocational Schools operated by the Department of Education (DOE), which offer certificate courses to about 72,000 students each year. A fuller description of the Technical Education System is outlined in Annex 3. C. Management and Administration of Technical Education 1.06 The planning, promotion, and control of technical education rests with the All Indian Council for Technical Education (AICTE) and the Bureau of Technical Education (BTE) in the Department of Education (DOE), Ministry of Human Resources Devalopment (MHRD) at the national level. The system is operated at the st;-te level by the Directorates and State Boards of Technical Education. The AICTE is the apex body providing leadership in the planning, promotion and regulation of technical education in the country. It has four All India Boards of Technical Studies for: (a) Technician Education; (b) Undergraduate Studies; (c) Post-Graduate Engineering Studies and Research; and (d) Management Studies. The Bureau of Technical Education acts as the administrative and governmental arm of AICTE and its various Boards, while at the same time, has powers relating to the processing, implementation, monitoring, control and evaluation of programs and projects in Central institutions, and centrally-sponsored and Plan schemes. The National Technical Manpower Information System (NTMIS) with the lead center at the Institut'v of Applied Manpower Research (IAMR) and 21 nodal centers in the States furnishes relevant manpower information for technical education planning. In the States, the Directorates and Boards of Technical Education are responsible for the planniing, management, administration and funding of technical education. D. Problems and Issues in Technician Education 1.07 Despite the impressive growth and diversification which the technical education system has undergone in the past few decades, it is still plagued by a variety of problems which are directly related to and affect its capacity to respond to the changing needs in the society, the quality of graduates which it produces, and the efficiency with which it is operated. Since this project follows immediately the first Technician Education project of May 1990, the analysis of the problems and issues in technician education were discussed in detail in the Staff Appraisal Report No. 8384-IN ddted April 3, 1990, These are outlined in detail in Annex 4, and summarized in the paragraphs below. Capacity 1.08 As the industrial modernization process increases in momentum in India, there is a need for two distinct types of technical personnel at the diploma level: these are the Technician and the Technician-Engineer. At present, the PolytechnLics are not capable of fully responding to the emerg4ng demand for a range of diversified and specialized occupations. Another problem is related to the rigidity of the structure of the courses where students who enter from varied educational and training levels pursue the same three-year program structure with no scope for rapid advancement or mid-course changes. A flexible Multi-Point  - 4 - .i:y and Credit system is in place in Gujarat and is being gradually introduced J'ii thile States participating in the First Technician Education Project. While the ( is (oliu11itted to increasing opportunities for women, scheduled castes/tribes, Wl0 rktial populations, only a small percentage of Polytechnics address the needs 4) These disadvantaged groups through provision for separate residential m(comodations for women, specialized short courses through Community Polytechnics and rural outreach projects. Ku 1 't) .U9 One of the major reasons for the poor quality of training at the P(.Jyte(hnics is a teaching force which lacks adequate pedagogical training and cdu-tlsrial experience. The TTTIs are being upgraded to Regional Resource Centers tbe first Technician Education Project to enable them to offer courses to li' lhuge backlog of untrained teachers. These institutions would provide the -ar:u services to teachers in the States in this project. There is a 30Z teacher :acancy rate at the Polytechnics and while many of these posts are filled with ad hoc appointments, the system's quality is ultimately affected because of couistant turn over. The quality of the system is also affected by the obsolescence and inadequacy of equipment and instructional facilities. Etficiency j.10 At present, systematic planning and coherent decision making is hampered by the lack of relevant, meaningful and reliable information about the internal and external efficiency of the system. There is an oversupply of some engineering specialties which results in under-or unemployment of graduates while other emerging disciplines have ample job opportunities. This problem will be partly addressed by the GOI's strengthening of the National Technical Manpower Information System (NTMIS), and by establishing Industry-Institute Interaction programs in the Polytechnic in the first and second project States. With regard -o internal efficiency, the major problems are the high repetition rates and the =utdated examination system. II. GOVERNMENT POLICIES, PLANS AND PROGRAMS IN TECHNICAL EDUCATION A. National Policy On Education , 01 After considerable national consultation and debate, the Government (-acted the National Policy on Education of 1986 (NPE), which gave a policy framework to the programs enacted for development under the Seventh Five-Year Plan. The Five-Year Plan and NPE were clear in recognizing the key issues affecting the sector and highlighted three priorities among its many goals. These are: (a) universal primary education; (b) universal literacy for youth and adults; and (c) the development of specialized manpower for the industrial sector. Several new programs were launched to meet these objectives, and among these is "Operation Blackboard," which is designed to provide essential facilities and learning materials to primary schools. To meet skilled worker 'leeds, two programs have been launched. The first essentially upgrades fndustrial Training Institutions (ITIs) and the second calls for the introduction of a vocational stream at the upper secondary level. 2.02 In teacher education, District Institutes of Education and Training !DIETs) are to be established with the capability of organizing pre-and in- service courses for primary school teachers and instructors in non-formal/adult 'ucation programs. Selected secondary teacher training colleges will also be  upgraded and arrangements made to establish better linkages between teacher education and training institutions and Departments of Education in universities. At the higher education level, the emphasis is on consolidation, with only selective expansion in the areas of science and technology. 2.03 In the technical education subsector, a number of new thrusts and directions are called for. The most important of these are to: (a) increase facilities for computer education; (b) highlight entrepreneurship as an avenue for engineering professionals; (c) encourage the participation of users in the curriculum development process; (d) restructure programs to provide flexibility by adopting credit-based courses and making provisions for multi-point entry; (e) expand programs and facilities for women and the handicapped; and (f) undertake continuing education on a large scale, including distance learning programs of both the formal and non-formal nature. 2.04 Since the Seventh Five-Year Plan and NPE have been launched, the Government has initiated and completed a number of actions. First, the Parliament has enacted legislation to establish the AICTE and has granted it the necessary statutory powers for the development and regulation of technical education. It has already started the process for creating a National Board of Accreditation (NBA), and has formulated the procedures it would adopt to grant accreditation to technical education institutions after they have been sanctioned and recognized by the AICTE. The AICTE is also taking the necessary steps for granting academic autonomy to a selected number of Polytechnics. The National Technical Manpower Information System (NTMIS) has been established. The Bureau of Technical Education has already instituted an IIT-REC ne-work scheme for the development of laboratories as well as faculty eT-hanges. Some interaction between the IITs and the Confederation of Engineering Industries (CEI) already exists. The AICTE has made recommendations regarding faculty recruitment procedures, qualifications for different cadres, pay scales and in-service training. Finally, a Performance Appraisal System has been developed and is awaiting AICTE approval. B. The Eighth Five-Year Plan (1990-94) 2.05 The Eighth Five-Year Plan has not yet been approved by the Government. All indications are that after the first year of the Plan period (1990-91) the major thrusts in technical education will continue as under the Seventh Five-Year Plan, with more emphasis on entrepreneurship, support for technology changes, and training for job-creation and employment. There is also likely to be more attention given to finding ways for the system to self-finance and gradually reduce the burden of operational costs on public finances. C. The Ten-Year Investment Program (1990-99) 2.06 In early 1988, at the request of the Department of Education (DOE), the TTTIs developed a Ten-Year Technician Education Investment Program for the 467 Government approved Polytechnics and the TTTIs to cover the Eighth (1990-94) and Ninth (1995-99) Five-Year Plan periols. The Investment Program broken down by the various sub-projects and estimated costs by objective is shown in Annex 5. The total estimated cost of the Investment Program is US$1.86 billion. Each individual sub-project has been reviewed and approved in principle by the DOE. However, financing of the program depends on the contributions of individual  States and the level of Central Government funding under the Annual Development Plans. D. Financing of Technician Education 2.07 Financing of technical education is shared by both the Center and State Governments (Annex 3, Paras 8-12). The States are fully responsible for the public Polytechnics, and also finance privately-managed Government-approved Polytechn .s at levels varying from 752 to 95% of recurring expenditure. However, the State Plans themselves are funded 502 by the States and 502 by the Central Government. All non-plan expenditures are met by the States and Union Territories. About 20X of the students who enroll in Polytechnics receive stipends and fellowships. 2.08 The average annual expenditure by a Polytechnic student on tuition, boarding, lodging and other training costs is about Rs 300. This represents less than about 102 of the annual operational cost per student which is about Rs. 4,500. The present fee structure at Polytechnics in project States is shown in Annex 6. The issue of cost recovery for any level of general pre-employment education is politically very sensitive in India and as a result the fee structure at Polytechnics and other post-secondary (pre-service) institutions and programs has remained intact for more than ten years. Because of this sensitivity, agitation by students, and a constituency in India which argues that equity can be maximized through increased access and subsidies to the truly disadvantaged, attempts at raising tuition fees and reducing subsidies have not met with much success. However, under the first Technician Project, the participating States have committed to expanding internal revenue generation activities, among which changes in the fee structures can be undertaken. 2.09 The Central Government finances technical education under two major areas: Central Institutions and Central Intervention Schemes. Central assistance to Polytechnics is provided in two ways. First, funds can be provided for Approved Schemes related to national policy, such as Modernization/Removal of Obsolescence from Polytechnics, and second, for new programs and institutions. The procedures for funding through Central Assistance Schemes involves vetting and approval by the BTE, the Regional Committee of the AICTE, the TTTI and the State BTE. E. External Financing of Education 2.10 Several donors are involved in the education and training sector, but the scale of their operations is small. UNICEF supports projects in basic education, while USAID assists project-related training (PRT) in agriculture, managerial and technical areas of public and private sector management, and science and technology. The ODA, with the British Council implementing, has a pilot project of primary education improvement in Andhra Pradesh. The UNDP, with the ILO as executing agency, has supported vocational training through the improvement of several ITIs and the introduction of the Advanced Vocational Training Program. More recently, the ILO has established facilities for numerically-controlled and computer-controlled (CNC) training at the Advanced Vocational Training Institutes (ATIs) in Bombay and Kanpur. The Federal Republic of Germany is supporting a limited number of Polytechnics in Madhya Pradesh while Italy is supporting a Vocational Training Center in New Delhi. In the early stages of their development, the ITIs, RECs and TTTIs received assistance from a  -7 - number of bilateral sources and the UNDP. The ODA and the Netherlands have assisted the TTTIs. Canada is also providing assistance to the TTTI located in Madras and to a number of colleges in Tamil Nadu. The International Development Research Center (IDRC) is undertaking a long-term study of the relationship between vocational/technical education and employment concentrating on ITIs; the utility of technical training received by women, and preparing guidelines for improving existing programs at ITIs. In the early 1970s, the UNDP funded the Curriculum Development in Technician Education project. Under this project about 301.5 staff-months of fellowship training, 201 staff-months of technical assistance and US$2.1 million worth of equipment was provided to the TTTIs to establish a National Testing Service and to undertake technician education research. F. IDA Role and Sector Lending Strategy 2.11 Previous Experience: IDA has supported three projects in the sector. The first was a Credit of US$12.0 million which was approved in 1973 to assist agricultural education and research at Assam Agricultural University, Rajendra Agricultural University in Bihar, and the Institute of Agricultural Research in New Delhi. The project was closed in 1982 and a Project Performance Audit Report (PPAR)(No. 5668 of May 23, 1985) issued, which noted that most of the objectives of the project had been achieved. The project suffered delays in implementation because of civil unrest in Assam, which meant that Bank staff could not visit the State for three or more years, and the fact that IDA's experience in university development projects was limited at the time this project was approved. Typically, this would have been a two-phased operation with emphasis given to detailed campus planning, academic/program development and staff training in a first operation. A second operation would have concentrated on construction and operation. The second project with IDA and Bank financing of US$280.0 miilion (US$250.0 million, IDA; US$30.0 million, Bank) was approved by the Board in May 1989. It is a Vocational Training project and concentrates on the expansion and qualitative improvement of pre- and in-service training of skilled/semi-skilled workers at Industrial Training Institutes (ITIs). Project implementation has been satisfactory to date. The third project with IDA and Bank financing of US$260.0 million (US$235.0 million, IDA; US$25.0 million Bank) was approved by the Board in May 1990. It is the first Technician Education Project and covers about 230 Polytechnics. The main objectives of the project are capacity expansion and quality and efficiency improvements. Although these latter two projects have only recently started, substantial progress in establishing management and implementation systems, procurement of equipment, development of new courses and civil construction are already evident. The IDA and the Bank have also supported training components as well as free-standing training projects in other sectors such as Forestry, Irrigation/Water Management, the Cement and Electronics Industries and Agricultural Extension. 2.12 Rationale for IDA Involvement: Because of inefficiencies, technological weaknesses, inappropriate pricing policies, and inadequate standards of quality and reliability in the industrial sector, IDA endorses a lending program which concentrates on the industrial sector as the key input to a broader strategy aimed at supporting economy-wide improvements in the efficiency of domestic resource mobilization, allocation and use. IDA also believes that investments in the social sectors including education and training, health, population, nutrition, water and sanitation can directly support industrial development through improved productivity of workers. In addition to alleviating the more  degrading aspects of poverty, investments in education and training, including retraining, can provide a means of increasing skills which would be required for the introduction of more technology, and the more skill-intensive elements in industry and agriculture. 2.13 GOI's Ten-Year Technician Education Investment Program will lead to adjustments in technician education policies, bring about institutional changes, and introduce new technologies in training and industry. IDA assistance would therefore continue to support policy reform, institutional development and technology dissemination. IDA's involvement with the technician education sub- sector also provides an avenue to pursue the dialogue on industrial training on a broader scale and compliments the Vocational Training and first Technician Education Projects. The skilled workers who are trained in the ITIs and who ultimately find employment in the industrial and modern sectors, will work closely with the technicians who are trained in the Polytechnics. Finally, IDA involvement in technician education would provide a forum for a discussion not only of skills development generally, but also the need for the system to improve its revenue generation and the role the private sector can play in organizing in- plant training and the other non-formal ways of training which can be directed to women, the rural and informal sectors. The proposed project takes into account the lessons learned from the first educat4on project since special attention has been given to the detailed physical and academic planning for new Polytechnics. It also builds on the early experiences of implementation of the Vocational Training and first Technician Education project. III. THE PROJECT A. Goals and Objectives 3.01 Goals. The goals of the proposed project are to support the National Policy on Education (NPE) (Paras. 2.01 - 2.04). More specifically, the proposed project is the second phase of IDA's commitment to support the national Polytechnic system. It follows the first Technician Education project and supports the Ten-Year Technician Education Investment Program which is formulated in the context of the NPE. 3.02 Objectives. In order to achieve the above goals, the proposed project would have three objectives. These are to: (a) expand the capacity of selected Polytechnics; (b) improve the quality of Polytechnic pLograms; and (c) increase the efficiency of the management and operation of the Polytechnic system at the Center and in the States. 3.03 The capacity expansion objective would be achieved by: (a) introducing programs in new and emerging technologies at existing Polytechnics; (b) developing a limited number of new Polytechnics; (c) establishing programs of Contir.uing Education; and (d) expanding programs aimed at Women and the Rural and Informal Sectors. 3.04 The quality improvement objective would be achieved by: (a) strength- ening teacher education and training programs at State-level Staff Development Centers; (b) establishing curriculum development and research programs; (c) modernizing laboratories and workshops and replacing obsolescent equipment at the Polytechnics; (d) instituting maintenance programs and improving internal revenue generation; and (e) initiating faculty development programs for Polytechnic teachers.  3.05 The efficiency improvement obLective would be achieved by: (a) strengthening the administration and management of the State Directorates and Boards of Technical Education; (b) granting autonomy to a selected number of Polytechnics; and (c) establishing Industry-Institute interaction programs at Polytechnics. Table 3.1 Objectives, Investments and Desired Outcomes OE JACT IVE'i zINVESTMNTS DES 1RED OUTCOMES CAPACITY EXPANSION through o Introducing Programs in Noe Curriculum development. equipping Training about 21,460 Polytechnic Technologies workehops and training new and existi;n graduates in nee technology areas. teachers to develop and introduce 89 nv. Technology Diploss and post diplos courses o OneloVinp He. Coeducational Construction, furnishing, equipping and Creation of an additional 3,465 plIces. Polytecnnics staffing of 9 Ne. Polytechnice. DOeveloping Continuing Education Establishing through peovieion of civil Training about 24,520 students through Prograss works equipment, books and materials, thwse programs over the project period. 40 Continuing Education Departments and Centers. o Expanding the Cosmunity Polytechnic Construction, furnishing, equipping and Training about 12,520 students in non- System staffing 54 existi ongPlytechnics so that formel skills programs appropriate for they mould have the capacity to function the informal and rural sectors as Community Polytechnics. o Expending Training Opportunities for Construction, furnishing, equipping and Creation of an additional 4,640 places Women staffing 9 New Residential Polytechnice annually for mosey in Polytechnice. for women as sell as special Wines at 6 Co-educationel Polytechnis. Also, establishment of apecial Cells in e*ch Polytchnic to ensure employment of female gradjuates. QiUALITY IMPROVEPE%T through: Improving and Expending Teacher Construction, furnishing, equipping end Developing a system of continuous on- Training staffing 52 Steff Development Cells/ Center. the-job and in-service trainig for in States/Polytechnicm. Polytechnic Teachers. Training about 2,100 t*achers ovor the project period. o Improving the Curriculum Dovelopm*nt Construction, furnishing, equipping and Oeveloping a system for the continou, Procms* staffing of 15 Curriculum Devalopeent ur ading and renewal of all curriculum. Centers in State Boards of Education. o Modernization of Equipment and Construction, furnishing and equipping Facilities mnd staff to offer training of Facilities about 600 morkshops, laborator,es, computer relevance to sodarn-secto- industry. centers mnd Learning Resources Calls/Centers at *bout 230