India - Technician Education Project

Document of The World Bank FOR OFFICIAL USE ONLY Z Z X 3 0 a Report No. 8384-IN STAFF APPRAISAL REPORT INDIA TECHNICIAN EDUCATION PROJECT APRIL 3, 1990 Asia Country Department IV (India) Population, Human Resources, Urban and Water Operations Division his document has a residdted disdtibution and may be used by recipiens only In the perfonnance of their officd duties. Its contenSt may not otherwse be dicosed without Wodd Bank autizaton.  CURRENCY EQUIVALEXTS Rupee 16.5 US $ 1.00 Rupee 1.00 US$ 0.060 HETRIC EQUIVALENTS 1 Meter (m) = 3.28 Feet (ft) 1 Kilometer (km) = 0.62 Yiles FISCAL Y1SAR April 1 - March 31 ABBREVI&TIONS 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 OMCAL USE ONLY TECHNICIAN EDUCATION PROJECT Table of Contents Page No. BASIC DATA ............................ iv LOAN/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 ............... 4 II. GOVERNMENT POLICIES, PLANS AND PROGRAMS IN TECHNICAL EDUCATION A. Seventh Five Year Plan (1985-89) ..... .................... 10 B. The Teza-Year Technician Education Investment Program (1990-99) ........ ..... ..... ............ 12 C. Financing of Technician Education ........................ 13 D. External Financing of Education .......................... 14 E. Bank Groups' Role and Sector Lending Strategy ............ 15 III. THE PROJECT A. Goals and Objectives ...... ............................... 16 B. Scope ................................................... i8 C. Capacity Expansion ................................8....... i D. Quality Improvement ...... 23 E. Efficiency Improvement ........ ........................... 25 IV. COSTS, FINANCING, IMPLEMENTATION AND DISBURSEMENTS A. Costs ................................................... 28 B. Financing Plan .......................................... 30 C. Recurrent Cost Implications ...... ....................... 31 D. Status of Preparation ..... .............................. 31 E. Project Management/Implementation .................. ..... 32 F. Monitoring, Review and Evaluation .................. ..... 33 G. Disbursements ........................................... 34 H. Procurement ............................................. 35 I. Accounting and Auditing ....... .......................... 36 This report is based on the findings of an Appraisal mission from January 17 - February 6, 1990. Mission members were R. Cambridge (Principal Economist, Team Leader), Ms. A. Nazareth (Educational Planner), E. Sigl (Technical Educator, Consultant), E. Dib (Architect, Consultant) and Ms. P. Khetrapal (Consultant). Ms. M. Chatterji, Ms. J. Bhasin (Secretaries NDO) and Ms. S. Pak assisted in preparing the Report. This document has a restncted 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 .......................................................... 37 B. Risks ................................*.*................... 37 VI. AGREEMENTS REACHED ...................... **.** ... 38 TABLES 2.1 Proposed Ten-Year Technician Education Investment Program ... 12 4.1 Project Costs by Component ...... ........................ ... ...... 28 4.2 Project Costs by Categories of Expenditure ................... 29 4.3 Project Costs by Subcomponents ......................... ... 30 4.4 Procurement Method ......................... ........... ....... 36 ANNEXES 1. Comparative Education Indicators .. 40 2. Government Polytechnics by State Showing Annual Intake and Output .................................... . 42 3. Guidelines for Recognition of Private Polytechnics .......... 43 4. The Technical Education System in India .................*.. 44 5. Present Fee Structures at Polytechnics in Project States .... 50 6. Multi-Point Entry and Credit System .......................... 52 7. National Technical Manpower Information System ............... 56 8. Demand and Supply of Technicians 1983-1995 .......195........... 59 9. Criteria for Selection of States............................ 65 10. Polytechnics and Enrollments in the Eight Selected States ... 67 11. Detailed Project Components by State ...... .................. 68 12. Summary of New Technology Courses to be Offered .... ......... 70 13. New Polytechnics by State .................................... 73 14. Continuing Education Centers and Departments by State ....... 76 15. Community Polytechnics by State .............................. 78 16. New Women's Polytechnics by State ............................ 80 17. Civil Works Implementation Program by State ...... ............ 86 18. Additional Places created in Polytechnics by State ........... 93 19. Status of Sanctioned Teacher Posts and Vacancies ............. 94 20. Teacher Training and Faculty Development System .............. 95 21. Polytechnics where Modernization Program Undertaken/Additional Workshops Created ...................... 102 22. Equipment and Furniture Procurement Plan by State ............ 103 23. Schedule of Appointment of Key Additional Staff ............. 107 24. Industry-Institute Interaction Programs by State ............. 115 25. Consultants and Fellowship Training ..........tnn............... 116 26. Project Costs Summary Costs by Component and Time .... ..................... 129 Summary Costs by Categories of Expenditure and Time .... ..... 130 Summary Costs by Component and Categories of Expenditure .... 131 27. Financing Plan by Component and by Categories of Expenditure ........... ...................................... 132 28. Recurrent Cost Implications ....... .......................... 134 29. Key Indicators of Quality and Efficiency Improvement ........ 135  - iii - Page No. 30. Forecasts of Expenditure and Disbursements................... 136 31. Present Problems and Proposed Improvements in Technician Education ...................... . .............. 137 32. Selected Documents Available in the Project File ............. 138 DIAGRAMS/CHARTS 1. Articulation of the Education System .................... 141 2. Technical Education System in India . .................. 142 3. Organizational Structure of Technical Education .............. 143 4. AICTE and its Organizations ................................. 144 5. Proposed Polytechnic for Physically Handicapped .............. 145 6. Industry-Institute 'inkages . ....................... 146 7. Organizational Structure of NPIU at EDCIL .................... 147 8. National Project Directorate at BTE .......................... 148 MAP Map showing project States, location of TTTIs and Regional Offices of AICTE  - iv - INDIA TECHNICIAN EDUCATION PROJECT Basic Data /a General Population (million) 1988 800 Annual Growth (Z) 2.2 Urban Population (1 of total) 25 GNP per capita (US$) 270 Population below poverty line (1983) 37.4 Employment in the Organized Sectors (1986) Million Percent Agriculture 1.4 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 s0 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 49,500 Ministry of Human Resource Development:Budget Allocations (USS million) Department of Education Plan Non-plan Actual (1986-87) 190.0 220.0 Budget Estimates (1987-88 Revised) 460.0 290.0 Budget Estimates (1988-89) 520.0 470.0 /a Sources: Ministry of Manpower & Ministry of Human Resources Development (unless shown otherwise). fb Includes mining and quarrying, manufa.turing, construction, public utilities, and transport and communications. Includes employment in establishments of 10 workers or more.  - v - INDIA TECHNICIAN EDUCATION PROJECT LOAN/CREDIT AND PROJECT SUMMARY Borrower: India, acting by its President Beneficiaries: Governments of Bihar, Gujarat, Karnataka, Kerala, Kadhya Pradesh, Orissa, Rajasthan and Uttar Pradesh. Amount: IBRD US$25.0 million equivalent IDA SDR 178.2 million (US$235.00 million equivalent) Terms: IBRD: 20 years, including 5 years of grace, at standard variable interest rate IDA: Standard, with 35 years maturity On lending Terms: Government of India (GOI) to Bihar, Gujarat, Karnataka, Kerala, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh: In accordance with standard arrangements for development assistance to States for the development of education projects on terms and conditions applicable at the time. Description: The goal 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 would have three major objectives and these are: Capacity Expansion which would be achieved by expanding and diversifying programs in about 502 of the Polytechnic system or about 230 new and existing institutions, so that they can undertake courses in new and emerging technologies, conventional and advanced technician engineering, and continuing education diploma courses. These courses would be implemented with flexibility which would be achieved with the introduction of the Multi-Point Entry and Credit System which is a major reform of the current rigid three-year diploma system. Special attention would also be given to expanding and improving training opportunities for women, rural populations and the handicapped by establishing a selected number of new Women's Residential Polytechnics, upgrading the existing Women's Polytechnics, expanding the number of Community Polytechnics, and establishing a Polytechnic for the Physically Handicapped. Quality Improvement would be achieved through modernizing the equipment and facilities of Polytechnics, expanding teacher  - vi - training by reorganizing the Technical Teacher Training Institutes, introducing a career development system for teaching staff, and undertaking curriculum development activities through the respective State Boards of Technical Education in each of the eight States. Efficiency Improvement would result from strengthening the Bureau of Technical Education at the Center, the State Directorates and Boards of Technical Education, granting academic autonomy to selected Polytechnics, undertaking Industry-Institute programs in each Polytechnic, encouraging internal revenue generation in Polytechnics and establishing equipment and facility maintenance systems. Benefits and Risks A major benefit of the proposed project is that it vould provide India's industrial sector with technicians of suitable quality in the areas of civil, mechanical, and electrical engineering, as well as in computer and electronics technology and in other required new and emerging areas. Ultimately, the major benefit of the project beyond numbers of students trained, is that it would assist in the reformation of policies that previously constrained the Polytechnic system and support institutional development processes such as the introduction of flexibility in student entrance and graduation requirements, career development for teachers, restructuring of the TTTI to become Regional Resource Centers, creating Curriculum Development Centers to develop courses and training techniques which meet new and emerging sector requirements, and the institutionalization 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 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 State, the Detailed Project Reports to be prepared by each Polytechnic, by enhancing and strengthening the Directorates and Boards of Technical Education in each of the implementing States, the support to be provided to them by the Technical Teachers Training Institutes tTTTIs), 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).  - vii - gstimated Costs: Comonents Local Foreign Total - ------ --US$ million----------- Capacity Expansion 103.87 29.73 133.60 Quality Improvement 127.11 42.89 170.00 Efficiency Improvement 41.02 6.25 47.27 Total base Cost 272.00 78.87 350.87 Contingencies 9.47 22.37 31.84 Total Project Cost* 281.47 101.24 382.71 * including taxes and duties of US$11.2 million. Financing Plan: IBDRIDA 158.76 101.24 260.00 GOI 16.68 - 16.68 States 106.03 - 106.03 Total 281.47 101.24 382.71 Estimated Disbursements: FY91 FY92 FY93 FY94 FY95 FY96 FY97 PY98 Annual 11.00 27.57 40.39 46.28 44.91 40.88 34.01 14.96 Cummulative 11.00 38.57 78.96 125.24 170.15 211.03 245.04 260.00 Economic Rate of Return: Not Applicable.  - - TECHNICIAN EDUCATION PROJECT I. TECHNICIAN EDUCATION IN INDIA A. Introduction 1.01 India is in the process of modernizing its industrial sector. The key aspects of these developments include the importation of new technologies for the design and production of durable goods, the reorganization of industrial management and the restructuring of public enterprises. A number of steps have also been taken to reform the overall policy regime and make it more conducive to the promotion of competition and modernization, cost efficiency with an emphasis on easing entry or expansion of incumbent firms and the recognition of efficient scales of production. Recent reforms can be broadly grouped into three categories, viz., measures to facilitate (a) capacity creation; (b) output expansion; and (c) the removal of procedural impediments. All of these will encourage growth in both the public and private sectors. Although growth in employment in the organized sector (comprising all establishments in the public sector and those non-agricultural establishments in the private sector employing 10 or more persons) has been sluggish in recent years, there was a marginal increase of 1.4 percent in 1987188. This increase was made up of an increase in employment of 1.7Z and 0.81 in the public and private sectors respectively. 1/ In the industrial se-tor, 302 of employment is in the private sector. The recently introduced reforms are expected to boost the percentage of private sector employment to at least 40? by the turn of the century. 1.02 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 system 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 rural 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. 1.03 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 17? in 1951 to 36? in 1981, and for women it rose from 8? to 25? in the same period. In spite of these achievements, India's social services are still less effective and extensive than other developing countries in the region. The adult literacy rate, for example is well below Malaysia (73Z) and China (76z). In 1/ Economic Survey (1988-89), Government of India, Ministry of Finance (Economic Division).  - 2 - addition, the primary school net enrollment ratio is only 791 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. Annex 1 shows international Comparative Education Indicators. 1.04 In 1986, the GOI formulated a New Policy on Education which includes a Ten-Year Technician Education Investment Program 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, rural populations and the physically handicapped as well as continuing education 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 Bureau of Technical Education (BTE) in the Department of Education (DOE), the State Boards and Directorates of Technical Education, granting academic autonomy to selected Polytechnics, and further strengthening the National Technical Manpower Information System (NTMIS) and the National Board of Accreditation (NBA). 1.05 The proposed project would support the Ten-Year Technician Education Investment Program. Its special features would be (a) the emphasis given to expanding the opportunities for women in modern sector training and employment; (b) the attention being given to develop a program for the physically handicapped; (c) the concerted effort to increase linkages between Polytechnics and industry; (d) the recognition that maintenance programs are concomitant with investments in new equipment and facilities; (e) the steps to be taken to improve internal resource generation in the Polytechnic system; (f) the introduction of flexibility in entrance and curriculum requirements into a rigid three-year diploma program; and (g) the systematic training of teachers and introduction of a career development system. The background to the project and related details are described below. B. Organization of Technical Education 1.06 Industrial workers in India are developed through public and pri- vately 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 (IITs) 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 in which they are located. In the States, there are 272 State Engineering Colleges (SECs) with an intake capacity of about 59,400 students. Ninety- seven of these Colleges are affiliated to local universities and financial assistance is provided by State Governments. There are also 167 private Colleges but about 25? of them receive assistance from the States and allocate about 80X of their seats to candidates nominated by the States. Most of these institutions also charge capitation fees ranging from Rs.50,000 to Rs.100,000  - 3 - depending on the course selected. Private sector colleges account for about 58a of all places in engineering college education. 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 annual intake and out-turn of Government Polytechnics in 1986-87 is shown in Annex 2. In Maharashtra and the southern States, there are about 300 self-financed Polytechnics with an estimated intake of 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 3 by which these private Polytechnics will be able to roceive 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 Training 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. Certifi- cate-level craftsman trade courses are offered to about 325,000 students annually through 1,887 Industrial Training Institutes (ITIs). Only 852 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 4. C. Management and Administration of Technical Education 1.07 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 Development (MHRD) at the national level. The system is operated at the state 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) at the center with nodal points 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 planning, management, administration and funding of technical education. 1.08 The Financing of technical education is undertaken by both the Center and the States under two heads: Non-Plan and Plan expenditures. Non-Plan  - 4 - expenditures cover on-going programs and existing institutions, while Plan expenditures are incurred on new projects/schemes which are funded during the Five-Year Plan period. Many Plan schemes continue after five years and therefore become non-plan programs. The Central Government finances technical education under two major areas: Central Institutions and Central Intervention Schemes. 1.09 State financing of technical education includes whole or part financing of RECs and Polytechnics. In the case of RECs, the States cover 502 of recurring expenditures and provide land and other amenities. The other costs are borne by GOI. The States are fully responsible for the Polytech- nics, and also finance privately managed and approved Engineering Colleges and Polytechnics at levels varying from 752 to 95Z of recurring expenditure. About 20S of the students who enroll in Polytechnics and RECs receive stipends and fellowships. All Post-Graduate students and Doctoral candidates are provided with fellowships. The average annual expenditure by a student on tuition, boarding, lodging and other training costs is about Rs 300 for Polytechnics and Rs 500 for RECs. At the Polytechnics, this represents less than about 102 of the annual operational cost per student which is about Rs 4,500. The current level of cost recovery from Polytechnic students in selected States in India is shown in Annex 5. It is clear that the States differ in the amounts they charge for tuition and boarding and the ultimate amount of costs they recover through this mechanism. Kerala, which for example recovers about 702 of operational costs is at one end of the spectrum while States like Orissa, Rajasthan and Bihar recover about or less than 102 of costs, and are at the other end. 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 have 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 in particular and reducing subsidies such as stipends have not met with much success. 1.10 It is estimated that about 272 of technicians and engineering graduates find employment in public sector undertakings, 38? in the private sector, 232 in State Governments and local bodies; 52 in the Central Govern- ment and the remainder in other informal sector areas. Of the group who find full-time employment, only 172 go into manufacturing, 9.62 in electricity and gas, and 0.42 in repair and maintenance. The remainder tend to find employment in services. D. Problems and Issues in Technician Education 1.11 Despite the impressive growth and diversification which the technical education system has undergone in the past four decades, it still suffers from 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. Capacity 1.12 As the industrial modernization process increases in momentum in  India, the emphasis in production is shifting from the older labor-intensive industries to ones requiring more skill-oriented manpower. Technical skills in new areas and familiarity with new methods of technology are becoming increasingly important. There is consensus in India today that the country needs two distinct types of technical personnel at the diploma level to respond to these changes: these are the Technician and the Technician-En- gineer. This would be in keeping with industrial developments, training, and employment patterns in the advanced and middle-income countries. 1.13 Given the requirements for these different types of workers and the emerging demand for a wide variety of diversified and specialized occupations, the Polytechnics are not as yet capable of fully responding to these needs. For example, 80X of the Polytechnics offer only the conventional courses in civil, mechanical, and electrical engineering, while only 2OZ offer some form of diversified program. Only 11 Polytechnics offer Advanced Technician Diploma programs, which are designed to produce the Technician-Engineer. The Emerging Areas where programs are required but are not yet underway include non-conventional energy including bio-gas conversion and gasification of fuels, environmental engineering, bio-technology, communication and informa- tion processing, computer-aided design and manufacturing (CAD CAM), fiber optics, microprocessors, oceanography, vacuum technology and cryogenics. 1.14 A second problem, which is directly related to the system's capacity to respond to changing needs, is the rigidity in the structure of various diploma programs. in India, as in most countries, there is the formal institution-based diploma program. However, the need for a highly flexible system where students can gain entry and reentry through part-time, day and/or block-release programs is a necessity. The Diploma course is of three-year duration for all courses and all students, despite the fact that some come with 12 years of basic education from the school system or are Industrial Training Institute (ITI) graduates. This rigid three-year structure is in place in all States except Gujarat which has introduced a Multi-Point Entry and Credit System. An explanation of this system is outlined in Annex 6. About 251 of the existing Polytechnics offer part-time diploma programs of eight-semesters duration. Most of these are in conventional subjects and the same as the regular program. The need for introducing flexibility into the technician education system and developing responsive continuing education programs is clear. This is particularly obvious when it is noted that there is a stock of about one million engineers and technicians who require updating and retraining to meet the changing needs of industry and the modern sectors. 1.15 While the technical education system has concentrated on producing workers for the organized sector, about 75Z of the population live in rural areas and are engaged in activities in the so-called "unorganized" sector. There is a need therefore for technical education institutions to respond in some way to this prevalent pattern of employment by offering relevant pro- grams. Of the 467 Government Polytechnics, 108 of them have undertaken programs which address some rural development problems. Typically, these Polytechnics offer short courses which are responsive to local needs and they act as 'service' centers for rural artisans and entrepreneurs. These 'Community Polytechnics' are the only real response to date to this need and demand. 1.16 While womea constitute about 50a of the population, their partici-  pation in technician education is low. Only 46 out of about 230 Polytechnics in the proposed project States offer courses to women, and only 112 of enrollment in Polytechnics are women. The courses which are offered tend to be traditional and do not facilitate the participation of women in modern sector wage employment. One of the major obstacles to female enrollment is the lack of separate residential accommodation at the Polytechnics. It has also been suggested that few women seek admission to coeducational programs, preferring instead to enroll in exclusively female institutions. 1.17 Lastly, the technical education system has not been responsive in any way to the needs of the 85 million handicapped persons in the country. It is estimated that of the 4.3 million school-aged handicapped, less than 5Z receive an ordinary education in specialized schools, Even when the blind, deaf and mentally handicapped are accounted for in specialized institutions, the training needs of the rest remain to be addressed. Quality 1.18 Although many of the technical education institutions such as the Indian Institutes of Technology (IITs) turn out students who are in demand both domestically and internationally, the quality of training is poor in the Polytechnics. The most prominent reason for this is a teaching force which lacks adequate pedagogical training as well as industrial experience. The system has been unable to attract and sustain the motivation of teachers because of non-competitive pay scales and other amenities of which the provision of housing is critically important. Hence, about 30X of teaching positions at the Polytechnics remain vacant. 1.19 Of the 15,000 teachers in the Polytechnics, only 2,000 have undergone formal teacher training, and only another 4,500 some type of short duration training course. With the need to expand programs in new areas, it is estimated that about 10,000 teachers have to be trained in long-term programs and another 6,000 in updating courses. The Technical Teacher Training Institutes (TTTIs) have so far been able to train only about 20Z of the existing stock of Polytechnic teachers. Their capacity would have to be doubled to meet a part of the demand for institutional training, as well as for them to organize other distance education programs. Industrial training facilities are rarely utilized for training faculty, and specialized programs to train faculty in educational technology, curriculum development, preparation of training aids, media design, testing, and evaluation and planning, do not exist at the State level. 1.20 A major factor which emerges from this lack of formal content updating, training in pedagogic skills, and industrial experience, is that teachers revert to "chalk and talk" teaching practices. The majority of teachers have been unable to introduce instructional strategies such as student-centered and resource-based learning because of the lack of instruc- tional (hard and software) materials, particularly a variety of media includ- ing television and computers. Computers are seen as especially important in the training of engineers and technicians. The lack of print/non-print materials, reprographic facilities, and books and journals in functioning libraries when combined with limited teacher training, lower the standard of instruction and the quality of trainees who graduate from these institutions.  - 7 - 1.21 The limited flexibility in the Diploma program is reflected in the curriculum. While the TTTIs have demonstrated the capacity to develop new curriculum and provide assistance to the State Boards of Technical Education, they too are constrained by a system which is at present centralized at the State level, and limits the ability of the individual Polytechnic to respond to needs as they emerge in their particular locale. Important tasks like the systematic reappraisal of teaching technology, development of teaching aids, and learning resources materials, student evaluation, preparation of teaching manuals and the training of teachers in educational technologies are poorly attended to. 1.22 The quality of the system is also affected by the equipment and facilities available for teaching, as well as the learning environment. Over the years, obsolescence of equipment and instructional facilities have assumed enormous proportions at the Polytechnics. About 602 of the Polytechnics were established two or three decades ago, hence much of the equipment and labora- tories are not only outdated but unserviceable. The 'standard equipment lists' which were prepared twenty-five years ago need replacing not only because of age, but because of changing syllabi, introduction of new courses, and the use of different equipment in industry. Laboratories in particular need modernization, as it would be especially difficult to correlate theore- tical cox-ses with experimental work in the absence of up-to-date modern facilities. The need for computers and electronic instrumentation is also evident. Only 10? of the Polytechnics have computer facilities. Hostels and staff housing at the Polytechnics are totally inadequate. Efficiency 1.23 The technical education system needs considerable strengthening to improve its internal and external efficiency. At present systematic planning is hampered by the lack of relevant, meaningful and reliable information about the internal and external efficiency of the system and for decision making at the right levels at the right time. For example, the National Technical Manpower Information System (Annex 7) only covers occupations by categories and quantitative information on broad areas of supply and demand. It does not take into account changing job profiles and income patterns. As important, there is no organized system for evaluating on a continuing basis the demand by industry for Polytechnic graduates, for diversification and phasing out of on-going programc, and for the introduction of new programs in emerging technologies. The Institute for Applied Manpower Research (IAMR) is the lead Center in the NTMIS, but performance both at the IAMR and at the nodal centers in the States needs support. What is needed is to link the NTMIS to a broader computerized management information system. 1.24 Employment and External Efficiency. India has the third largest pool of technicians in the world. Different data sources suggest that manufacturing jobs increased at a much slower pace in the 1980s than in the 1970s, despite a sharp rise in industrial growth. This was a result of increased capital intensity brought about by a policy environment which discouraged job creation. Given the need for India to generate productive employment in the next few decades, new industrial labor strategies and  - 8 - policies are necessary. 1/ Assuming that industrial growth, especially in the manufacturing sector will continue apace in the foreseeable future, a shift is needed from the present practice of preserving employment and upgrading existing jobs in existing firms, to an aggressive policy of promoting substantial employment growth in order to insure that higher growth is translated into higher labor demands. 1.25 Since the mid 1950s, India has made significant efforts in policy reforms as evidenced by the Industries (Development and Regulation) Act of 1951 and the Second Industrial Policy Resolution in 1956. Although these reforms have resulted in significant overall output and investment growth, there is still insufficient technological progress in a large number of subsectors. 21 For future industrial expansion, India should take advantage of three sectors, industrial electronics, computers and data processing, and telecommunications, which are less penalized by the industrial environment than other areas of activity and which in addition, thrive on intensive use of skilled manpower. 1.26 Graduates of Polytechnics are primarily employed at the skilled technician level or as supervisors for semi-skilled and unskilled workers. Because of the dearth of employment at this level, diploma graduates have been known to accept jobs which require far lower qualifications, resulting in underemployment. At present, 402 of Polytechnic graduates are employed in the organized sector where limited employment growth has pushed up wages and other labor costs as compared to the unorganized sector. 3/ 1.27 Data analyzed on the demand for and supply of technicians at the all- India level and by engineering specialty show that there has 'een an over- supply in civil engineering since the late 1970s (Annex 8). If no policy intervention is initiated, this situation will result in a cumulative surplus of over 85,000 civil engineering technicians by the year 1995/96. Although there is at present an oversupply of mechanical engineers, it is expected that the economic growth rate of about 5X predicted for the Eighth (1990-94) Plan will absorb this excess up to the year 1992/93 after which there could be an undersupply. In the case of electrical engineers, demand is expected to exceed supply by 1990/91 with a cumulative gap of over 51,000 by 1995/96. For chemical, metallurgical and electronics engineering technicians, demand has already exceeded sup?ly in the region of 1,500, 500, and 6,000 respectively for the year 1988/89. If the GOI's industrial policy is to move rapidly into emerging technology areas, i.e., electronics, computers and data processing, and telecommunications, and is to succeed, the out-turn of graduates in these disciplines will have to be increased as soon as possible. 1/ World Bank, India: Poverty, Employment and Social Services, Country Economic Memorandum, Report No. 7617-IN, February 2, 1989. 2/ Vorld Bank, India: Policies for Industrial Technology Development, Report No. 6715-IN, May 11, 1987. 3/ The unorganized sector includes household establishments and small- scale establishments with less than ten workers and power, or less than 20 workers and no power.  1.28 In order to close the gap between the demand for and supply of technicians, there are three fundamental areas which must be addressed in the coming decade. These are to: (a) plan the supply of technicians by engineering specialty to meet t}.e needs of new technology industries and the unorganized sector; (b) curtail oversupply in disciplines which are saturated; and tc) provide incentives and opportunities to industries which disseminate modern technologies which are labor intensive and those where India has a competitive advantage. 1.29 For the above policies to work, the linkages between industry and Polytechnics which are presently weak, need considerable improvement. Industry sometimes considers Polytechnics graduates too theoretical for immediate employment. Technical education institutions sometimes do not sufficiently appreciate that developing the technical skills and knowledge of students to participate in industrial production is their main function. Interaction with the community, professional societies, and amongst institutions is also not very strong. Polytechnics tend to operate in isolation and major efforts will be required to get programs to be more relevant to the needs of industry. In such an environment, internal as well as external efficiency will remain low, contributing to unfavorable performance and high costs per graduate. A system which is not well integrated with industry and not delivering the right product, needs substantial revision and changes. The Community Polytechnics, however, provide some links to the rural and informal sector. 1.30 While dropouts are not a major problem, repetition is more prevalent in the system. Since admission to Polytechnics is usually on the basis of merit, the relatively better students gain admission and dropouts are low. The largest number of dropouts is normally in the first year and is generally due to students transferring to better institutions. Even in the private institutions where students of relatively lower merit are admitted, dropout rates are not very high. Students here pay high capitation fees for admission and are guaranteed graduation. The highest dropout rate is seen among scheduled caste and tribe students. In post-graduate courses, the dropout rates range between 30? and 60?, but this is due in large part to candidates gaining employment. 1.31 The examination system requires change and a rational student performance assessment system needs to be developed. The results of a recent examination of 700 first-year Polytechnic students at the end of the first semester revealed that only 29Z were successful in the entire examination. Further, from a sample of 251 students entering three-year courses in two Polytechnics, only 46? successfully completed their Diploma in the prescribed time. In some cases, examinations do not fairly reflect the curriculum. In other cases, standards which are set for passing are unreasonably high. The unrestricted "carry-over' reduces the motivation of students and burdens teachers with groups of students with an unreasonably wide range of achieve- ment. It would be appropriate to revise and publish comprehensive guides for examiners on the setting, marking and moderating of question papers as is done by the City Guilds of London which is the examining body in technical educa- tion in the United Kingdom. 1.32 More than dropouts and repeaters, it is the disinterested student who poses a serious problem in the system. Student indiscipline has increased in  - 10 - recent years, and this has a relationship to the nonacademic environment, poor instructors, postponement of examinations, unemployment of graduates, and political interference in the activities of these institutions. Absence of proper guidance and counselling services and indifference toward the community have aggravated the problem. Guidance and counselling services in an or- ganized form are absent in most institutions. Placement services should be provided by a Placement Officer, but in most institutions this position does not exist or is unfilled. Even campus interviews with potential employers are not arranged by all the institutes. 1.33 The organizations and institutions which operate the system need strengthening if the efficiency is to be improved. The Bureau of Technical Education (BTE) and its four regional offices need assistance. The work load of the BTE has increased, particularly its role as the Secretariat to the AICTE, but this has not been accompanied by the necessary expansion of staff. The State Directorates and Boards of Technical Education are mainly concerned with administration. Typically, the Directorates have no professional units for promoting industry-institute linkages, Community Polytechnics, employment planning and curriculum development. The Boards are concerned only with conducting examinations but need to be involved in curriculum development and review. With the mushrooming of private technical institutions, there is also a need to maintain performance standards. A system of approval/sanction, recognition and ultimate accreditation is now in its infancy. At the institutional level, efficiency can be improved when Polytechnics are autonomous in financial, administrative and academic matters. At present, only 25 Polytechnics enjoy some degree of autonomy. Il. GOVEFNHENT POLICIES, PLANS AND PROGRAMS IN TECHNICAL EDUCATION A. Seventh Five-Year Plan (1985-90) 2.01 After considerable national consultation and debate, the Government enacted 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 ares (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 have been launched to meet these objectives, and among these is 'Operation Blackboard,' which is designed to provide essential facilities and learning materials to primary schools. The program also calls for two teachers in every school with the expectation that eventually there will be one teacher per class. The immediate target is that by 1990 all 11 year-olds would have five years of primary schooling. To meet skilled manpower needs, two programs have been launched. The first essentially upgrades Industrial Training Institutions (ITIs) by revising curricula, updating equipment, and increasing the output of competent instructors. The Advanced Vocational Training Program which is conducted in a selected number of ITIs is to be broadened. The second program calls for the introduction of a vocational stream at the upper secondary level. The goal of this vocation- alization scheme is to cover 10? instead of the present 2.5? of secondary students with vocational courses by 1990, and 252 by 1995. In the long term, the expectation is that 70? of the students in the vocational stream would undergo a paid apprenticeship.  - 11 - 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 education 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. Lastly, the system of planning and management will receive attention. The guiding principles would be: (a) the integration of school education more closely with manpower needs; (b) increased decentralization and autonomy at the institu- tional level; and (c) increased involvement of the people, including non- governmental agencies. At the national level, the Central Advisory Board on Education (CABE) will play a pivotal role in reviewing educational develop- ment, while State Advisory Boards of Education and District Boards of Educa- tion would be created to manage education up to the higher secondary level. 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 aid the handicapped; and (f) undertake continuing education on a large scale, including distance learning programs of both the formal and non-formal nature. These new directions would be subsumed under three major categories of infrastructure, staff, and research development. For infrastructure development, emphasis is to be given to the removal of obsolescent equipment, modernization of laboratories and libraries, generation of learning resource materials, provision of hostels and staff housing, and instituting a program of maintenance. In the areas of staff development, efforts would be undertaken to revise present pay scales to make them more attractive, to provide better working conditions, to evolve a valid performance appraisal system of teachers and other staff, to expand both pre- and in-service training programs, and to provide career growth opportunities for teachers. To promote research, action is to be taken to improve established technologies, to generate and adopt new technologies, and to transfer technology to the rural and unorganized sectors. Technology Watch Groups are to be developed to ensure that this future- oriented direction is maintained in technical education. 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 Poly- technics. The National Technical Manpower Information System (NTMIS) has been established and plans are under preparation to make it more effective. The Bureau of Technical Education has already instituted an IIT-REC network scheme for the development of laboratories as well as faculty exchanges. Some interaction between the IITs and the Confederation of Engineering Industry (CEI) already exists. The AICTE has made recommendations regarding faculty  - 12 - recruitment procedures, qualifications for different cadres, pay scales and in-service training. Finally, a Performance Appraisal System is being developed by a group of experts in the Ministry of Human Resources Development (MHRD) and their recommendations are to be presented to the AICTE in the near future. B. The Ten-Year Investment Program (1990-99) 2.05 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 periods. The Investment Program broken down by the various sub-projects and estimated costs by objective is shown in Table 2.1. The total estimated cost of the Investment Program is US$1.86 billion. Each individual sub-project has been reviewed by the DOE and approved in principle by the DOE. However long-term financing of the program depends on the contributions of individual States and the level of Central Government funding. Table 2.1: Proposed Ten-Year (1990-99) Technician Education Investment Program OBJECTIVE: 8th Five Year Plan l9th Five Year Plan Total I - COMPONENT/ACTIVITY (1990-94) I ( (19999099) 1 SRe. US8 I Re. US8 I Re. US$ - --~~~~~~~~~~------ - ---------Mio-- -- --- - - ---- --------e------------ - o- CAPACITY EXPANSION: ! I i N ew Technology Programs l I I - Introduco 80 Nem Diploma programs and 1215.1 72.8 i 1418.0 84.8 1 2628.1 157.4 j 100 Advanced Technician Diploma programs I - Develop 16 now Polytechnics 1726.9 10384 1 2108.9 126.3 1 836.8 229.7 ---------- - -