FOR OFFICIAL USE ONLY Report No: PADHP00089 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT PROGRAM APPRAISAL DOCUMENT ON A PROPOSED LOAN IN THE AMOUNT OF US$195 MILLION TO INDIA FOR THE DEVELOPMENT OF APPLIED KNOWLEDGE AND SKILLS FOR HUMAN DEVELOPMENT IN MAHARASHTRA (DAKSH) PROGRAM May 2, 2024 Education Global Practice South Asia Region This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. CURRENCY EQUIVALENTS Exchange Rate Effective as on February 29, 2024 Currency Unit = US$ 82.9 INR = US$1 FISCAL YEAR April 1 - March 31 Regional Vice President: Martin Raiser Regional Director: Nicole Klingen Country Director: Auguste Tano Kouame Practice Manager: Keiko Inoue Task Team Leader(s): Shabnam Sinha, Pradyumna Bhattacharjee, Tushar Arora ABBREVIATIONS AND ACRONYMS Acronym Full Name ACG Anti-Corruption Guidelines AFR Administrative and Financial Rules AM Accountability Mechanism API Application Programming Interface AR/VR Augmented Reality/Virtual Reality AWP Annual Program Activity and Expenditure Workplan BEAMS Budget Estimation, Allocation and Monitoring System C&AG Comptroller and Auditor General of India CM Contract Management CPF Country Partnership Framework CSDEE Commissionerate of Skill Development, Employment and Entrepreneurship DAKSH Development of Applied Knowledge and Skills for Human Development DDO Drawing and Disbursing Officer DEA Department of Economic Affairs DLI Disbursement Linked Indicator DLR Disbursement Linked Result DPDP Digital Personal Data Protection Act DSDP District Skill Development Plan DVET Directorate of Vocational Education and Training E&S Environmental and Social EAP Externally Aided Project EHS/OHS Environmental Health and Safety/Occupational Health and Safety ESSA Environmental and Social Systems Assessment FM Financial Management FY Financial Year GDP Gross Domestic Product GeM Government e-Marketplace GSDP Gross State Domestic Product GO Government Order GoI Government of India GoM Government of Maharashtra GR Government Resolution GRS Grievance Redress Service IA Implementing Agency IBRD International Bank for Reconstruction and Development IEC Information, Education and Communication IFSA Integrated Fiduciary Systems Assessment IoT Internet of Things IPC International Placement Centre IT Information Technology ITI Industrial Training Institute IVA Independent Verification Agency KPI Key Performance Indicators LMIS Labor Market Information System M&E Monitoring and Evaluation MIS Management Information Systems MoU Memorandum of Understanding MSBSVET Maharashtra State Board of Skill, Vocational Education, and Training MSInS Maharashtra State Innovation Society MSME Micro, Small and Medium Enterprise MSSDS Maharashtra State Skill Development Society MSSU Maharashtra State Skills University NSQF National Skills Qualification Framework OPRC Operational Procurement Review Committee PAP Program Action Plan PDO Program Development Objective PEF Performance Evaluation Framework PforR Program for Results PMC Program Management Consultant PMU Program Management Unit PPP Public-Private Partnership PoSH Prevention of Sexual Harassment Act PwDs Persons with Disabilities PWD Public Works Department RA Results Area SBD Standard Bid Document SC Scheduled Caste SCGJ Sector Skill Council for Green Jobs SDC Skills Data Center SEEID Skills, Employment, Entrepreneurship, and Innovation Department SIDBI Small Industries Development Bank of India SIMO Skill India Mission Operation SSC Sector Skill Council ST Scheduled Tribe STRIVE Skills Strengthening for Industrial Value Enhancement ToC Theory of Change TLM Training-Learning Material ToR Terms of Reference TVET Technical and Vocational Education Training WEC Women Entrepreneurship Cells WSC World Skills Center The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) TABLE OF CONTENTS DATASHEET ....................................................................................................................................... 1 I. STRATEGIC CONTEXT .................................................................................................................. 6 A. Country Context ............................................................................................................................... 6 B. Sectoral (or Multi-Sectoral) and Institutional Context ..................................................................... 6 C. Relationship to the CPS/CPF and Rationale for Use of Instrument .................................................. 9 II. PROGRAM DESCRIPTION .......................................................................................................... 10 A. Government Program ..................................................................................................................... 10 B. Theory of Change (ToC) .................................................................................................................. 10 C. PforR Program Scope ...................................................................................................................... 11 D. Program Development Objective(s) (PDO) And PDO Level Results Indicators .............................. 16 E. DLIs and Verification Protocols ....................................................................................................... 17 III. PROGRAM IMPLEMENTATION .................................................................................................. 17 A. Institutional and Implementation Arrangements .......................................................................... 17 B. Results Monitoring and Evaluation................................................................................................. 18 C. Disbursement Arrangements.......................................................................................................... 18 D. Capacity Building ............................................................................................................................ 18 IV. ASSESSMENT SUMMARY .......................................................................................................... 19 A. Technical (including program economic evaluation) ..................................................................... 19 B. Fiduciary.......................................................................................................................................... 21 C. Environmental and Social ............................................................................................................... 23 V. RISK ......................................................................................................................................... 24 ANNEX 1. RESULTS FRAMEWORK MATRIX ........................................................................................ 25 ANNEX 2. TECHNICAL ASSESSMENT .................................................................................................. 42 ANNEX 3. FIDUCIARY SYSTEMS ASSESSMENT ................................................................................... 43 ANNEX 4. ENVIRONMENTAL AND SOCIAL SYSTEMS ASSESSMENT ..................................................... 50 ANNEX 5. PROGRAM ACTION PLAN .................................................................................................. 52 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) @#&OPS~Doctype~OPS^dynamics@padpfrbasicinformation#doctemplate DATASHEET BASIC INFORMATION Project Beneficiary(ies) Operation Name Development of Applied Knowledge and Skills for Human Development in Maharashtra - India (DAKSH) Maharashtra Program Does this operation have an IPF Operation ID Financing Instrument component? Program-for-Results P177965 No Financing (PforR) @#&OPS~Doctype~OPS^dynamics@padpfrprocessing#doctemplate Financing & Implementation Modalities [ ] Multiphase Programmatic Approach (MPA) [ ] Fragile State(s) [ ] Contingent Emergency Response Component (CERC) [ ] Fragile within a non-fragile Country [ ] Small State(s) [ ] Conflict [ ] Alternative Procurement Arrangements (APA) [ ] Responding to Natural or Man-made Disaster [ ] Hands-on Expanded Implementation Support (HEIS) Expected Approval Date Expected Closing Date 23-May-2024 30-Mar-2029 Bank/IFC Collaboration No Proposed Program Development Objective(s) To improve skills and entrepreneurship training for enhanced employability in Maharashtra. @#&OPS~Doctype~OPS^dynamics@padborrower#doctemplate May 01, 2024 Page 1 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) Organizations Borrower: India Skills, Employment, Entrepreneurship and Innovation Department, Government of Implementing Agency: Maharashtra Contact: Ganesh Patil Title: Additional Chief Secretary Telephone No: 7588816060 Email: acs.seeid@maharashtra.gov.in @#&OPS~Doctype~OPS^dynamics@padfinancingsummary#doctemplate COST & FINANCING (US$, Millions) Maximizing Finance for Development Is this an MFD-Enabling Project (MFD-EP)? No Is this project Private Capital Enabling (PCE)? Yes SUMMARY Government program Cost 1,785.78 Total Operation Cost 278.00 Total Program Cost 277.51 Other Costs (Front-end fee,IBRD) 0.49 Total Financing 278.00 Financing Gap 0.00 Financing (US$, Millions) World Bank Group Financing International Bank for Reconstruction and Development (IBRD) 195.00 Non-World Bank Group Financing Counterpart Funding 83.00 May 01, 2024 Page 2 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) Borrower/Recipient 83.00 @#&OPS~Doctype~OPS^dynamics@paddisbursementprojection#doctemplate Expected Disbursements (US$, Millions) WB Fiscal Year 2024 2025 2026 2027 2028 2029 Annual 0.00 39.28 45.97 34.85 34.35 40.55 Cumulative 0.00 39.28 85.25 120.10 154.45 195.00 @#&OPS~Doctype~OPS^dynamics@padclimatechange#doctemplate PRACTICE AREA(S) Practice Area (Lead) Contributing Practice Areas Education Finance, Competitiveness and Innovation CLIMATE Climate Change and Disaster Screening Yes, it has been screened and the results are discussed in the Operation Document @#&OPS~Doctype~OPS^dynamics@padrisk#doctemplate SYSTEMATIC OPERATIONS RISK- RATING TOOL (SORT) Risk Category Rating 1. Political and Governance ⚫ Moderate 2. Macroeconomic ⚫ Moderate 3. Sector Strategies and Policies ⚫ Moderate 4. Technical Design of Project or Program ⚫ Substantial 5. Institutional Capacity for Implementation and Sustainability ⚫ Moderate 6. Fiduciary ⚫ Substantial 7. Environment and Social ⚫ Moderate 8. Stakeholders ⚫ Moderate May 01, 2024 Page 3 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) 9. Overall ⚫ Substantial @#&OPS~Doctype~OPS^dynamics@padpfrcompliance#doctemplate POLICY COMPLIANCE Policy Does the project depart from the CPF in content or in other significant respects? [ ] Yes [✓] No Does the project require any waivers of Bank policies? [ ] Yes [✓] No @#&OPS~Doctype~OPS^dynamics@padlegalcovenants#doctemplate LEGAL Legal Covenants Sections and Description 1. The Program Implementing Entity shall: (a) vest responsibility for overall coordination, implementation, and monitoring and evaluation of the Program to SEEID, DVET, MSSDS, CSDEE, MSBSVET, MSSU, PWD and MSInS as the nodal Implementing Agencies (“IAs”) responsible for coordinating and overseeing the achievement of Disbursement Linked Indicators (DLIs)/Disbursement Linked Results (DLRs); (b) establish within one (1) month of the Effective Date and maintain throughout the period of implementation of the Program, a program management unit (“PMU”), within SEEID; (c) within six (6) month of the Effective Date or any other date as agreed in writing between the Bank and the Borrower, engage the services of and maintain throughout the period of implementation of the Program, a program management consultant (“PMC”), within SEEID; (d) maintain, until completion of the Program: (i) the Steering Committee; and (ii) the Project Coordination Committee; (e) ensure that the Program’s procurement performance data is submitted to the Bank semi-annually, starting no later than six (6) months after the Effective Date (or any other date agreed in writing between the Implementing Entity and the Bank), in form and substance acceptable to the Bank; (f) (i) Ensure that an independent procurement audit for procurements under the Program is conducted annually by independent auditors selected under terms of reference (ToR) acceptable to the Bank; and (ii) submit the audit reports to the Bank annually, starting one (1) year after the Effective Date, in form and substance acceptable to the Bank; May 01, 2024 Page 4 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) (g) Not later than six (6) months after the Effective Date (or such other date which the Bank has confirmed in writing to the Program Implementing Entity and is reasonable and acceptable under the circumstances), the Implementing Entity shall prepare and adopt a fiduciary manual (the “Fiduciary Manual”) in form and substance acceptable to the Bank; (h) prepare and furnish to the Bank not later than April 15 of each Fiscal Year, an annual Program activity and expenditure plan plus budget, for implementation of the Program during the following year, except for the annual budget for the first year which shall be furnished prior to the commencement of the relevant activities under the Program. The Implementing Entity shall exchange views with the Bank on each such proposed annual budget for the Program, and shall thereafter adopt said budget for such following fiscal year, as such budget may be subsequently revised during such following fiscal year; (i) ensure that the Program’s activities involving collection, storage, usage, and/or processing of Personal Data are carried out with due regard to the Borrower’s existing legal framework and appropriate international data protection and privacy standards and practices; in the event that, during the implementation of the Program, the approval of any new legislation regarding Personal Data protection may have an impact on the activities financed by the Program, ensure that a technical analysis of said impact is conducted, and that the necessary recommendations concluding the assessment and adjustments deemed necessary to efficiently protect Personal Data, are implemented, as appropriate; and except as may otherwise be explicitly required or permitted under this Agreement and/or the Loan Agreement, or as may be explicitly requested by the Bank, in sharing any information, report or document related to the activities described in Schedule 1 to the Loan Agreement, ensure that such information, report or document does not include Personal Data. (j) not later than one month after the Effective Date, hire and thereafter maintain, at all times during the implementation of the Program, one or more Independent Verification Agent(s) under ToR acceptable to the Bank, to verify the data and other evidence supporting the achievement of one or more DLRs as set forth in the table in Schedule 4 to the Loan Agreement and recommend corresponding payments to be made, as applicable @#&OPS~Doctype~OPS^dynamics@padconditions#doctemplate Conditions Type Citation Description Financing Source No withdrawal shall be made under Categories (1) to (6) of the disbursement table on the basis of DLRs achieved prior to the Signature Date, except that Legal Agreement Schedule Disbursement withdrawals up to an IBRD/IDA 2 Section IV B (i) aggregate amount not to exceed $48,750,000 may be made on the basis of DLRs achieved prior to this date but on or after June 1, 2023. May 01, 2024 Page 5 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) I. STRATEGIC CONTEXT A. Country Context 1. Growth is forecast to be between 6.3-7.3 percent in Fiscal Year (FY) 23/24 and to remain robust in the medium term. In FY23/24 India will remain the fastest growing large economy. While consumption growth is expected to slow down (as the post pandemic rebound dissipates) and export demand to be somewhat depressed by the weak global environment, strong investment growth should keep economic growth elevated. The public investment push should gradually crowd-in private investment which will also be facilitated by healthy corporate profits, easing inflation, India’s strong macroeconomic fundamentals and a reduction in bank non-performing loans. The government’s efforts to contain current spending coupled with strong revenue performance should contribute to narrow the general government fiscal deficit (to 8.7 percent in FY23/24), with the debt-to-Gross Domestic Product (GDP) ratio stabilizing at around 82 percent of GDP over the medium term. India’s external position remains favorable, with growing services exports, a narrowing merchandise trade deficit, steady net foreign capital inflows and large foreign exchange reserves of more than US$600 billion (as of end-2023). 2. India has made remarkable progress in reducing extreme poverty over the past two decades. The share of the population living below US$2.15 per person per day (2017 Purchasing Power Parity) is estimated to have halved between 2011 and 2019 from 22.5 to 12.7 percent. In line with global trends, extreme poverty increased by two percentage points in 2020 on account of the pandemic. However, broad access to vaccines and government mitigation measures contributed to the return to pre-pandemic poverty levels. The extreme poverty rate is estimated to have declined to 11.9 percent in FY 2021/22, while moderate poverty ($3.65 per person per day) rate is estimated at 40 percent in FY 2021/22. 1 India's long-term progress in reducing extreme poverty was accompanied by a sharp decline in the incidence of multidimensional poverty, from 27.7 percent in 2015/16 to 16.4 percent in 2019/21. Inequality in consumption has remained stable over the past two decades, with a Gini index of around 35. Child malnutrition declined sharply between 2015/16 and 2019/21, with 35.5 percent of children under the age of 5 being stunted. Headline employment indicators have improved since 2020, and unemployment rates have recovered in urban and rural areas but concerns about job quality remain.2 B. Sectoral (or Multi-Sectoral) and Institutional Context 3. Maharashtra is the nation's third-largest state. It is situated in the western expanse of India. With an expansive geographical spread of over 300,000 square kilometers, it ranks as the nation's third-largest state by area. Maharashtra has six administrative divisions for revenue management and governance purposes. These divisions are Konkan, Aurangabad, Pune, Nashik, Nagpur, and Amravati. The State has 36 districts. Boasting a population exceeding 120 million, Maharashtra is one of the most populous states of India characterized by its rich tapestry of traditions, languages, and customs. It is also one of the most industrialized states in India and a hub for the country’s financial sector, including Asia’s oldest Bombay stock exchange. 4. Maharashtra's diverse economy significantly contributes to India's GDP, with the tertiary industry leading at 60 percent, followed by the secondary industry at 26 percent and the primary industry at 14 percent. With a compound annual growth rate of 9.7 percent over the past five years, the State plays a major role in India’s exports, foreign direct investment, and micro, small, and medium enterprises (MSME). About 22.7 percent of India’s exports originate in Maharashtra. Some sectors of note are trade, hotels, real estate, finance, insurance, transport, communications, and other 1 World Bank. Macro Poverty Outlook (MPO). October 2023. 2 World Bank. Poverty and Equity Brief. Fall 2023 Edition. Page 6 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) services. Start-ups in Maharashtra have experienced significant growth, contributing to economic development and job creation. The State leads with the highest number of recognized start-ups in India, particularly in Mumbai, and has implemented progressive policies and initiatives to support the startup ecosystem. However, there is still room for improvement in areas such as incubation support, regulatory simplification, public procurement, and broader support for start-ups beyond urban centers. 5. However, the skilled workforce is not commensurate with the requirements of the Maharashtra State. Maharashtra is one of the top ten states in India with a large number of MSMEs, having more than 4.7 million MSMEs (as per National Sample Survey). Maharashtra’s 13,519 recognized startups have played a crucial role in job creation, with over 146,000 jobs generated in Maharashtra. However, the skilled workforce is not commensurate with the requirement. Maharashtra is estimated to have witnessed an incremental demand for skilled labor of 15.5 million persons between 2012-22, with maximum demand from sectors such as building, construction, real estate, organized retail, banking financial services, and insurance. The state needs skilled labor force, driven primarily by the tertiary sector which is the highest contributor to the Gross State Domestic Product (GSDP) (more than 60 percent), emerging from trade, hotels, real estate, finance, insurance, transport, communications, and other services. 6. Maharashtra offers great promise in unlocking India’s demographic dividend and addressing equity related challenges but needs a skilled workforce and youth with entrepreneurial skills. While India’s working age population is forecast to increase until 2050, only 5 percent of the labor force aged 20-24 has formal vocational skills and many young people do not have access to skills development that can improve their employability.3 With its large population and high literacy rate of 84.8 percent, it can meet this demand if it implements appropriate skills development strategies now. Additionally, Maharashtra has a significant working-age population, and a notable representation of Scheduled Castes (SCs) and Scheduled Tribes (STs), in addition to an estimated 2.96 million persons with disabilities. Therefore, skills development for the large vulnerable population in Maharashtra can support India’s equity goals. 7. Meeting the demand for a skilled workforce is a challenge due to the skills and employment mismatch and inter-district disparities. While unemployment has decreased post-pandemic, a significant portion of the workforce is still employed in agriculture, which may see a decline in labor demand. This is partly due to demographic changes and increased enrollment for post-matric education. Many other factors like technological changes, sectoral composition of output, shift of female workforce from household activities to outside activities and vice versa, skill creation, mechanization, labor laws and regulations, have also produced changes in the workforce and employment. So, while the share of agriculture in GDP goes down for the country as well as for Maharashtra, the workforce will have to learn new skills to serve the expanding needs of services and manufacturing sectors. There are also economic and social disparities among districts; some districts have high levels of multidimensional poverty with malnutrition, lack of clean water, poor quality of work and schooling. 8. The sixth Economic Census of India estimates that 8.25 percent of businesses are run by women entrepreneurs in Maharashtra, of which women-led start-ups comprise only 0.8 percent. While Maharashtra has seen growth for women in regular wage work and reports a Female Labor Force Participation Rate of 40 percent, which is slightly higher than the national average of 37 percent, this progress does not extend to women entrepreneurs and the start-up economy. Various persistent challenges, which create an unfavorable environment where women are discouraged from becoming entrepreneurs, include: (i) lack of adequate skills; (ii) insufficient technical and business training; (iii) inadequate digital and financial literacy; (iv) lack of knowledge about the support systems available for women; and (v) lack of finance which impacts the ability of women to establish, run and sustain viability of an enterprise. Available data show that 90 3 Government of India, Ministry of Health and Family Welfare, 2022. National Family Health Survey (NFHS - 5), 2019–21 report. Page 7 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) percent women entrepreneurs in India rely on informal sources of financing as formal financing institutions often refuse to fund women led start-ups, viewing them as risky and doomed to fail. Running a business also requires skills and capital - 90 percent of new start-ups fail. By putting in place enabling services and creating a conducive environment for women’s businesses, DAKSH will provide women the foundation to establish and run businesses. 9. Maharashtra faces multiple climate vulnerabilities that could worsen human capital outcomes . While agriculture is the primary source of livelihood in Maharashtra, the share of agriculture and animal husbandry in the GSDP has remained comparatively low. More than 30 percent of Maharashtra falls under the rain-shadow region where scanty and erratic rains occur, while about 84 percent of the total area under agriculture is directly dependent on the monsoon. About a quarter of India’s drought-prone districts are in Maharashtra, with 73 percent of its geographic area classified as semi-arid. The State is highly vulnerable to current and future climate change, which threatens its natural resources and communities. Many areas have experienced droughts for consecutive years, which have damaged agriculture and caused water shortages. The frequency of droughts is projected to increase in the future. Extreme hydrometeorological events have inflicted significant human and economic losses. Given its extensive coastline, low lying regions along the coast, including small islands, it will face the highest exposure to rising sea levels that will increase the danger of floods bringing more cultivable area under the risk of submergence and degradation. 10. Maharashtra’s skills development system has a large institutional apparatus, yet a coherent convergent framework is needed to knit these together. Skilling, employment, and entrepreneurship programs are managed by the Skills, Employment, Entrepreneurship, and Innovation Department (SEEID) and its constituent units. Maharashtra’s long term skilling interventions are managed by the Directorate of Vocational Education and Training (DVET), while short-term training is managed by the Maharashtra State Skill Development Society (MSSDS). They are mandated to prepare decentralized district skill development plans (DSDPs) that aggregate local labor demands and link youth with industry. DVET provides administration and vocational education and training services to and oversees Industrial Training Institutes (ITIs), skills development centers, technical schools, and technical junior colleges. The Maharashtra State Board of Skill, Vocational Education, and Training (MSBSVET) regulates skills, vocational education and training, and entrepreneurship education. The Maharashtra State Skills University (MSSU) has been established to provide youth seamless linkage between Technical and Vocational Education Training (TVET) and higher education through credit rating; and multiple entry and exit options. The Commissionerate of Skill Development, Employment and Entrepreneurship (CSDEE) promotes employment and facilitates self-employment. Various services of the CSDEE are provided through the SEEID’s web portal, Mahaswayam. The Maharashtra State Innovation Society (MSInS) supports the State's innovation-driven entrepreneurship environment and promotes start-ups focused on innovation. District level coordination is done through District Skills Committees.4 11. Assessment of the programmatic and institutional architecture points to challenges in Maharashtra’s plan for enhancement and modernization of the skilling and innovation system. The ITI system, led by DVET, is characterized by poor infrastructure; inability to meet skilling needs for rapidly evolving labor market; and significant trainer vacancies. Short-term government programs, run by the MSSDS, are meant to democratize access to skilling and rapidly produce a skilled workforce at scale, but these struggle to reach remote and marginalized areas. The low quality of trainers and assessors, and lack of a vibrant and efficient training architecture are further constraints. The MSBSVET lacks appropriate research capabilities and is unable to leverage technology adequately. It needs clear and nimble systems and sufficient staff to meet its assessment and certification functions. The CSDEE is also experiencing several challenges, including: (i) poor penetration of career services to all regions of Maharashtra; (ii) inadequate capacity for monitoring and evaluation 4 District Skill Committees are district level coordination bodies that undertake coordination between different departments like District Employment officer, Fisheries officer, Agriculture officer, Panchayati Raj officer, General Manager District Industries Center, and local youth. Page 8 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) (M&E), and analysis of the employment market; (iii) ineffective delivery of existing initiatives; and (iv) insufficient personnel. 12. The skilling system of Maharashtra also suffers from lack of robust demand signaling mechanisms leading to information symmetries. There are limited sources of relevant, updated, and appropriately disaggregated data on jobs availability, skills requirements, and other labor market aspects to signal industry demand to the suppliers of training. The Management Information System (MIS) through the Mahaswayam portal needs significant upgradation and efficiency enhancement to be effective. A more demand-driven approach to skills gap analysis, followed by employer driven skills training, will be helpful in promoting decentralized planning and monitoring mechanism of skills development system. C. Relationship to the CPS/CPF and Rationale for Use of Instrument 13. The proposed Development of Applied Knowledge and Skills for Human Development in Maharashtra (DAKSH) Program is consistent with the World Bank Group Country Partnership Framework (CPF) FY18-22 (Report No. 126667- IN) discussed by the Board of Executive Directors on September 20, 2018, and extended to FY25 by the corresponding Performance and Learning Review dated October 23, 2023. The objectives of the CPF include promoting resource-efficient growth, enhancing competitiveness, enabling job creation, and investing in human capital as a critical long-term investment to eliminate extreme poverty and foster India’s middle class. The Program will contribute to promoting resource-efficient, inclusive, and diversified growth especially in rural areas through an upskilled workforce (CPF Objective 1.1); increasing access to quality market-relevant skills development (CPF Objective 2.4); and enabling access to more quality jobs for women (CPF Objective 2.5). The Program will adopt all four catalytic approaches integral to the implementation of the CPF: (i) leveraging the private sector through public-private partnerships (PPPs) and deeper industry linkages in the skilling ecosystems; (ii) strengthening public sector institutions; (iii) engaging a Federal India by working across decentralized channels of service delivery in the skilling ecosystem; and (iv) promoting a “Lighthouse Maharashtra” that pioneers innovation and high quality skilling, and connects practical know-how for the benefit of other states within India, and elsewhere as well. 14. The proposed operation uses the Program for Results (PforR) instrument. DAKSH covers a wide range of activities with different entities at the State, district, and sub-district levels in support of the Government of Maharashtra’s (GoM’s) skilling, employment, and entrepreneurship programs. The Program is considered an optimal fit to support implementation of a decentralized and convergent approach to reposition Maharashtra’s focus on impact and accountability for results across its districts and sub-programs, which constitute the GoM’s program. The PforR instrument will provide penetrated vision to support institutional capacity down to the regional and district levels to plan, coordinate, fund, monitor and evaluate activities, and adjust them in response to sectoral demand. It will help Maharashtra start initiatives early and smoothly given that different elements/sub-programs of the GoM’s program are ongoing. In addition, the PforR instrument presents several design and implementation advantages over other instruments, including (i) shifting the focus from inputs to results, thus increasing accountability; (ii) incentivizing government’s ownership and implementation of critical reforms and policies; (iii) strengthening the use of country systems (fiduciary, safeguards and monitoring arrangements) for Program implementation and sustainability; and (iv) providing flexibility and efficiency in supporting a complex government program with deep results orientation. 15. The DAKSH Program is consistent with India’s Nationally Determined Contribution and Long -term Low-Carbon Development Strategy and is aligned to India’s commitments, including: (i) a way of life based on values of conservation and moderation (LIFE – Lifestyle for Environment); (ii) adapting to climate change; (iii) building capacities for quick diffusion of cutting-edge climate technologies; (iv) promoting climate responsive and resilient building design; and (v) Page 9 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) exploring PPP frameworks in view of intensive resource requirements. At the sub-national level, the Program is fully aligned with Maharashtra’s State Adaptation Action Plan on Climate Change, which acknowledges the role of education, training, and skills development across sectors such as water, agriculture, and agri-processing in achieving adaptation and mitigation goals. II. PROGRAM DESCRIPTION A. Government Program 16. Skilling, employment, and entrepreneurship programs of Maharashtra are managed by the SEEID. SEEID acts as the nodal agency for planning, coordination, execution and monitoring of all the skill development initiatives of Maharashtra. Several schemes/sub-programs of various departments of Maharashtra cumulatively worth US$1.79 million are integrated and implemented through the active coordination by SEEID. DAKSH has been designed to support the GoM in implementing its long- and short-term skills training, employment opportunities, innovation, and entrepreneurship program. The institutional training programs through the ITI system comprises of 994 ITIs. Out of these, 419 are government owned (these include 15 women’s ITIs and 2 tribal ITIs) that are managed by DVET and the rest are privately managed. SEEID, through the MSBSVET, has enhanced its quality assurance mechanisms through the introduction of the Government of India’s (GoI’s) National Skills Qualification Framework (NSQF). DAKSH will further strengthen Maharashtra’s quality assurance framework. The Program will also support the GoM’s existing decentralized DSDPs to ensure that these are prepared at district levels through industry and youth consultation. MSSDS will be the key implementation partner for this at the district and sub-district levels. The GoM through the CSDEE is also partnering with the Small Industries Development Bank of India (SIDBI) to finance initiatives on inclusion, especially for women’s access to labor markets particularly in the MSME sector.5 Finally, MSInS, Maharashtra’s innovation platform, runs initiatives to create awareness about innovation, start-ups, and entrepreneurship with a focus on youth and students. It provides startup support grants to deserving start-ups and incubates them for success. B. Theory of Change (ToC) 17. DAKSH is expected to help move the government’s skills development program towards a coherent institutional system through enhanced quality assurance; strengthened market relevance; and employer interface. DAKSH will have a special focus on the vulnerable; it proposes to enhance women’s participation in the labor force and strengthen support to vulnerable sections like SCs/STs and those in areas geographically hard to reach. The DAKSH Program seeks to strengthen the relationship between skills’ development and private sector demand by facilitating entrepreneurship, start-ups, incubation centers, accelerators and MSME platforms. The Program will ensure blending of private capital with public finances to feed into the skilling and jobs agenda. 5 SIDBI was set up under an Act of Indian Parliament, and acts as the Principal Financial Institution for promotion, financing, and development of the MSME sector. Page 10 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) Figure 1: Theory of Change for DAKSH C. PforR Program Scope 18. The Program will support the GoM’s systemic and institutional reform to ensure that the skilling system is “built back better than before” with efficient delivery systems. DAKSH aims to enhance quality of ITIs by re-envisioning the concept of ITIs and subsequently operationalizing the same in 53 select model ITIs (36 general ITIs, 15 women ITIs, and 2 tribal ITIs) through significant upgradation of governance and management, courses/trades, learning environment, and equity orientation. Further, DAKSH will draw on insights and lessons from implementation in model ITIs to translate the transformative vision of modern and futuristic skills training institutions to all ITIs. Disbursement Linked Indicators (DLIs) will be used to incentivize performance improvement. 19. The Program will support the CSDEE and the MSInS to continue to expand their mandates on innovation and entrepreneurship training by scaling up the number of incubators, deepening support to start-ups including on mentorship, and increasing access to entrepreneurship training. Additionally, DAKSH will seek to improve engagement with the private sector to strengthen management and service delivery in the skilling sector. Quality assurance and training of trainers and assessors remains a major challenge, so DAKSH will support SEEID through its MSBSVET and CSDEE to Page 11 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) strengthen quality assurance mechanisms by designating at least six regional centers, one in each region, for training of trainers and assessors. 20. DAKSH will support start-ups and entrepreneurship by setting up at least six incubation centers, while Maharashtra will be encouraged to ensure that all the ITIs supported under DAKSH include an incubation center for start- ups and entrepreneurs. Traditionally vulnerable groups such as SCs/STs and people in disadvantaged areas will be provided targeted support so that skilling under DAKSH is inclusive and rural friendly. This will be ensured through identification of ITIs in rural areas and ensuring strategic financing, with targeted skills and entrepreneurship training programs catering to context-specific needs. MSSU will be supported in its efforts to become a university and beyond - through support for ushering in future skills, skilling, and upskilling. In addition, DAKSH will support the establishment of a strong data center with connectivity to each trainee, employer, assessor, and trainer. The center will serve as a decision-making apparatus for robust implementation; it will allow seamless institutional connection with data and technology enablement for improved service delivery and accountability. 21. Additionally, DAKSH will benefit from lessons from World Bank financed operations, such as the Skill India Mission Operation (SIMO; P158435), and Skills Strengthening for Industrial Value Enhancement (STRIVE; P156867). It will help facilitate decentralized planning, PPPs in skill development programs, engaging industry clusters to support ITIs, and focusing on participation of women in the skill development system that were the key focus areas of SIMO and STRIVE. Table 1: PfoR Program Boundary Government program Program supported by the PforR Reasons for non-alignment Objective To improve skills and entrepreneurship training for enhanced employability in Maharashtra. N/A Duration April 2024 –March 2029 N/A Geographic Across the State of Maharashtra N/A coverage Results RA 1 – Institutional Strengthening for High-Quality Market Relevant Areas 1.Institutional training Training with robust MIS systems While all sub- programs across the ITI 1. Carrying out of diagnostics to strengthen SEEID’s setup and programs system, comprising 994 it management. listed under is, including 419 the 2. Development of a dynamic Skills Data Center (SDC). government and 15 government women ITIs (DVET) 3. Establishment of an IPC . program are 4. Enhancement of the quality of training programs offered in critical to 2. Short-term skills Maharashtra. DAKSH RAs, training programs run at 5. Strengthening of Selected ITI in all the State’s districts. some sub- central and state level programs will 6. Strengthening of the ITI system. (MSSDS) be excluded as 7. Provision of support to MSSU. these 3. Quality assurance categories of through the introduction RA 2 - Improving the quality and market relevance of skill expenditure of the NSQF (MSBSVET) development programs at the training provider level are not aligned 1. Development and implementation of policies and guidelines to DAKSH. 4.Promoting to identify, recruit, train, and retain effective trainers/master These include: employment, facilitating trainers and assessors. Page 12 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) self-employment, and 2. Establishment of six regional centers of excellence for training 1. Salaries and supporting DSDPs and reskilling of trainers and assessors. office (CSDEE) 3. Provision of support to MSBSVET. establishment costs. 4. Carrying out of advanced training in high-demand trades and 5. Apprenticeship future focused trades. programs- Maharashtra 2. Social Apprenticeship RA 3 - Enhancing access for women and disadvantaged groups security and Promotion Scheme 1. Strengthen inclusion in the PIA’s skilling ecosystem. welfare 2. Provision of support for self-help groups, enterprises and programs 6.Innovation platform start-ups that are run or led by women and persons with which are that supports skills, disabilities. funded and innovation, start-ups, and managed by 3. Promotion of safety of women employees, especially within entrepreneurship GoM. MSMEs. programs (MSInS). 4. Regular monitoring of disaggregated data on access and 3. Deposit- 7.Provision of youth with participation of women, SCs, STs and persons with disabilities, linked market-relevant skills, to identify progress and necessary course-corrections. Insurance upskilling and reskilling RA 4 - Expanding skills and entrepreneurship training through PPPs: Scheme - GoM programs through degree 1. Foster outcome-focused industry partnerships for skills mandate. programs (MSSU). development. 4. Government 2. Enhance employer interface through private sector International placement Provident Fund participation and entrepreneurship development programs to cell (IPC) - GoM. trigger self-employment and further employment generation. 3. Provision of support to MSInS to deepen its task of incubating Works, Goods, startups, fintech companies, access to information, space, and and tools for venture startups. Consultancy 4. Promote entrepreneurship and enterprise development. contracts above the Operational Procurement Review Committee (OPRC) thresholds. Overall US$1785.78 million US$278.00 million Financing Table 2: Estimated Financial Breakup for Government program and PforR Program Source Amount (US$ million) % of Total Central Budget 3.78 ~00.2 Government program State Budget 1782.00 ~99.8 Total 1785.78 Government Share 83.00 ~30 PforR Program IBRD 195.00 ~70 Total 278.00 Front-end Fee (Paid from IBRD loan) IBRD 0.487 Page 13 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) RESULTS AREAS (RAs) 22. RA 1: Institutional Strengthening for High-Quality Market Relevant Training with robust MIS systems: DAKSH will be the scaffolding Program that will knit together the institutions of the SEEID through a coherent institutional network and the technology based SDC. It will offer support to strengthen the current setup and management of the SEEID through plugging gaps in administration and enhancing process re-engineering including quality assurance and control. For evidence-based planning and management, DAKSH will facilitate the development of a dynamic Labor Market Information System (LMIS) by reforming the state-owned Mahaswayam portal into a modern SDC. A comprehensive monitoring application with geofencing and geotagging for field level academic and non-academic staff will be setup to provide information and feedback on training centers/institutions with real time data gathering and evaluation of skills ecosystem. The application will provide access to labor market projections, skills shortage list, skill content of occupations, job vacancy surveys, and job matching services. Students will be provided information on skills development programs, as well as access to services such as application, registration, financial assistance, counselling, career guidance, mentoring, apprenticeships, job placements and access to learning materials and assessments. The SDC will be hosted in the World Skills Center (WSC), a state-of-the-art apex skills body that will aggregate data, connect with the Skill India Digital portal of the GoI, and support M&E of skill training activities. The GoM will consider using lower-carbon good practices to create a ‘green’ SDC. An IPC will be set up to support global mobility of skilled workforce from Maharashtra to and from other states and countries. 23. The Program aims to enhance the quality of training programs offered in Maharashtra by strengthening skills training institutions in the State. The MSSDS, through the CSDEE, works with the districts on skill development programs. Under the Program, the MSSDS and CSDEE will undertake formulation, implementation, and M&E of the State Skills Development Plan and DSDPs, skills gap assessments, accreditation, improvement of short-term skills development training centers, as well as apprenticeships and job placements of trainees of short-term programs. The DVET will strengthen 36 ITIs in the districts. DAKSH will strengthen the ITI system through a PEF that will grade these ITIs on select parameters of access, quality, equity, and governance. DAKSH will focus on infrastructure strengthening and civil works for safe, inclusive, and viable institutions. The Program will support DVET in fulfillment of machinery, tools, equipment, infrastructure upgradation; preventive maintenance and repair; and investments in occupational safety and health. DAKSH will support strengthening the syllabus of Craftsmen Training Scheme trades and improving quality of training, and upskilling trainees through short term courses on emerging areas. The MSSU will provide seamless linkage between TVET and higher education through credit rating and multiple entry and exit options. Infrastructure will be climate informed. Locational context and vulnerability to relevant natural disasters will inform institute/classrooms construction. Efficient drainage systems for flood control or higher plinth level to reduce/avoid damage due to flooding will be ensured. Climate- resilient design, and construction and adoption of green institution norms (e.g., rainwater harvesting) will be undertaken and buildings will be compliant to water sanitation and hygiene norms. 24. RA 2: Improving the Quality and Market Relevance of Skill Development Programs at the Training Provider Level: This RA will focus on capacity-building of trainers and assessors. The Program will support the development of policies and guidelines to identify, recruit, train, and retain effective trainers, master trainers, and assessors. This will commence with the establishment of a framework for evaluating the performance of instructors/assessors for both long and short-term skills training institutions. Activities will include mobilization of training partners; identification of master trainers and instructors (of ITIs, vocational schools, and short-term training centers); developing a technology-enabled system to deliver and track trainings; providing industry-specific and pedagogical training; conducting classroom/workshop observations; and integrating feedback from both students and employers. The Program will support the establishment of six regional centers of excellence, which will offer well-structured training and reskilling programs Page 14 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) for trainers and assessors. It will support MSBSVET in accreditation, monitoring and supervision, developing a quality assurance framework, industry engagement for dual system of training, establishing an online training mechanism/platform, assessment framework, and assessing quality and certification of skill development programs. Advanced training in high-demand trades and future focused trades such as Internet of Things (IoT), Augmented Reality/ Virtual Reality (AR/VR), robotics and blockchain could be provided through a sophisticated WSC. The focus will not only be on curriculum and content but also effective TLM, student handbooks, and teacher guides, especially in local languages and in a digitized format. The Program will support better alignment of interest and expectations to realities of skills training and employment through improved trainee mobilization, psychometric assessment, imparting cognitive and socio-emotional skills; and counselling before, during and post training. Climate change related modules in training of trainers and administrators will be supported to (i) identify existing opportunities and gaps for climate change risk reduction and resilience building; (ii) promote mitigation initiatives such as identifying key emerging areas for skilling in low-carbon industries and climate resilient technologies; and (iii) enhance preparedness for and contingency-planning capabilities in the case of climate-caused disasters. 25. RA 3: Enhancing Access for Women and Disadvantaged Groups: DAKSH will Strengthen inclusion in the skilling ecosystem, including the provision of support for: (a) systems-wide mapping of training needs and employment opportunities for women and disadvantaged groups in collaboration with SSCs; (b) integration of key metrics for inclusion in the performance evaluation framework for ITIs; (c) the transformation of selected women and tribal ITIs into model ITIs; (d) the establishment of satellite centers of MSSU for greater rural outreach; (e) community outreach, sensitization, and mobilization campaigns to facilitate participation of disadvantaged groups, especially in non-conventional sectors; (f) the introduction of courses tailored for women candidates to enable increased female workforce participation; (g) digital and blended TLM for universalized access; (h) development and implementation of entrepreneurship development programs, with a focus on digital and financial literacy for women and persons with disabilities; (i) provision of support to incubate innovations by grassroot innovators and local self-help groups; and (j) development and implementation of mentorship programs for women in leadership positions such as chief executive officers or board members. 26. Provision of support will be ensured for self-help groups, enterprises and start-ups that are run or led by women and persons with disabilities, including: (a) design and evaluation of pilot interventions to enhance participation and placement outcomes among women, tribal communities, youth from scheduled castes and scheduled tribes, and persons with disabilities, including through the provision of grants and scholarships; (b) establishment of entrepreneurship development programs with a focus on digital and financial literacy and incubations of grassroots innovations and local self-help groups; and (c) development of a women-entrepreneurship index to monitor district-level performance. 27. Promotion of safety of women employees, especially within MSMEs, by: (a) creating awareness of the prevention of sexual harassment laws amongst both men and women trainees; and (b) provision of enabler services such as childcare facilities. 28. Regular monitoring of disaggregated data on access and participation of women, scheduled castes, scheduled tribes and persons with disabilities, to identify progress and necessary course-corrections will be undertaken throughout the Program. 29. DAKSH will focus on fostering strategic careers in low-carbon and climate resilience areas and technologies such as renewable energy, landscape planning, sustainable urban development, sustainable agriculture, and renewable natural resources. It aims to build green skills through training programs that will be led by the Sector Skill for Green Jobs (SCGJ) especially for vulnerable groups such as women and PwDs. This will take them on a low carbon development pathway. Page 15 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) 30. RA 4: Expanding Skills and Entrepreneurship Training through PPPs: The Program will foster outcome-focused industry partnerships for skills development. By collaborating with private sector and SSCs, the Program can improve diagnostics, skills gap mapping, development of curricula and training materials, and post-training outcomes. Leveraging both public and private vocational training partners can help scale up existing programs, create new ones in areas where training opportunities are lacking, reaching youth in both rural and urban deprived communities. The Program will facilitate state-of-the-art skilling centers at the district level, which will be owned and/or supported by industries. These partnerships will also ensure high-quality, market-aligned, up-to-date, and hands-on training for trainers and assessors. Skilling and incubation/micro-incubation centers will be created in areas and districts with low penetration of skills training and entrepreneurship, using hub and spoke models centered at select institutions like ITIs, polytechnics, and technical schools. 31. Moreover, training programs for small business owners and entrepreneurs are crucial for upgrading managerial capacity, enhancing understanding of the value of a skilled workforce, and supporting job creation. The Program will enhance employer interface through private sector participation and entrepreneurship development programs to trigger self-employment and further employment generation. DAKSH will support MSInS as an institution for strategy and implementation, management, and monitoring of innovation and entrepreneurship. The MSInS will be supported to deepen its task of incubating start-ups, fintech companies, provide access to information, space, and tools for start-ups. This will help to take their ideas to the next level. DAKSH will encourage innovation in sectors critical for growth, including but not limited to fintech, cybersecurity, IoT, AR/VR, artificial intelligence, and machine learning, blockchain, agri-tech, healthcare, cleantech, renewable energy, waste management and recycling. Entrepreneurship and enterprise development will be promoted through targeted resources, programs (including incubators, accelerators, innovation labs, sandboxes, platforms, and mentorship), partnerships, and growth capital. Training on innovative business ideas that address problems of local communities and districts could spur entrepreneurship across the State. Start-ups in the State will be supported through innovative financial instruments, with a focus on helping emerging entrepreneurs with growth capital to scale up. 32. Further, to leverage the private sector's expertise, the following activities are planned where technical collaboration will be the focus: (i) skilling programs in conjunction with industry and SSCs; (ii) strategic PPPs supporting market-relevant skilling for the future of work; (iii) incubation and innovation support for start-ups, along with training programs for small business owners and entrepreneurs in the MSME sector; (iv) hub-and-spoke models at ITIs and secondary schools through strategic partnerships; (v) Build-Operate-Transfer models for infrastructure creation and upgradation and for technology provision; and (vi) collaborations with financial institutions for PPP structures. D. Program Development Objective(s) (PDO) And PDO Level Results Indicators 33. The proposed PDO for the Program is to improve skills and entrepreneurship training for enhanced employability in Maharashtra. 34. The achievement of the PDO will be measured through the following indicators: a) Trainees completing skill training and placed in apprenticeships (number and percent, disaggregated by SC/ST and women) b) Improved performance of ITIs (percent) c) Strengthened training of trainers and assessors (number) d) Private capital and partnerships mobilized for improved women’s entrepreneurship (percent) Page 16 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) e) Private capital and partnerships mobilized for improved skill development programs in ITIs (number) E. DLIs and Verification Protocols 35. Disbursement under the Program will be conditional on the achievement of specific results, measured by the DLIs summarized in the Table 3 and detailed in Annex 1. The choice of each DLI and the DLI value for each year was based on: (i) signaling role of the indicator (that is, the extent to which it signals the implementation of a critical action, output, or outcome in the results chain); (ii) perceived need to introduce a strong financial incentive to deliver the activity, output, or outcome; (iii) practical aspects of verifying achievement; and (iv) GoM’s capacity to achieve the DLI during the implementation period. Table 3: DLIs Financial Summary of DLIs Allocation (US$) DLI 1. Integrated decentralized SDC for real-time monitoring of skill development 29,250,000 DLI 2: Improved apprenticeships and performance of ITIs through DVET strengthening 39,000,000 DLI 3: Enhanced institutional architecture of MSSU for market-relevant skilling and of SEEID for training of 38,512,500 trainers and assessors DLI 4: Increased access to skill development programs for women, SCs and STs by SEEID 40,000,000 DLI 5: Private capital and partnerships mobilized for improved skill development programs in ITIs and 28,250,000 women’s entrepreneurship by SEEID DLI 6: Increased access to entrepreneurship development programs and incubation through SEEID 19,500,000 Total IBRD 194,512,000 36. The achievement of DLIs will be reviewed and verified by an Independent Verification Agency (IVA) to be contracted by the GoM using a ToR satisfactory to the World Bank. The DLIs will be verified through pre-identified disclosed data sources including SDC, data files with required records, financial accounting documents, documentary evidence of Memoranda of Understanding (MOUs), frameworks, indices, and curriculum. The IVA reports will serve as the basis for assessing progress towards the achievement of the DLI targets, and for review and disbursement authorization by the World Bank. The IVA report will also form the basis for the GoM to present DLI disbursement requests to the World Bank and for the GoI to release funds to the State. The World Bank will further review the evidence base for all DLIs during implementation. III. PROGRAM IMPLEMENTATION A. Institutional and Implementation Arrangements 37. The GoM has architected a clear and comprehensive institutional and implementation arrangement for the successful implementation of DAKSH. Governance will be led by a Steering Committee chaired by the Chief Secretary of the GoM, and strategic direction provided by the Project Coordination Committee chaired by the Head of the SEEID. The SEEID will be the overall counterpart and through its sub-units will oversee Program implementation. Implementation, monitoring, and quality assurance will be led by a PMU under the leadership of the Commissioner, SEEID. The Project Implementation Unit will be staffed by an Additional Program Director, Finance Officer, Law Officer, Engineer, and other staff as required. The PMU will also be supported by an externally hired Project Management Consultant (PMC). Each of the sub-units of the SEEID (DVET; MSSDS; CSDEE; MSBSVET; MSInS; and MSSU) will be an Implementing Agency (IA). For Page 17 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) infrastructure upgradation activities, SEEID and its sub-units are expected to engage the State’s Public Works Department (PWD), which possesses extensive experience in World Bank-financed operations. PWD will thus be the civil works provider. 38. The SEEID has defined roles and responsibilities for each of its sub-units to ensure improved delivery systems and enhanced coordination. The DVET is in-charge of long-term training through the ITI system. The MSSDS manages the short-term skill development programs. The CSDEE is the bridge between employment seekers and employers and undertakes various employability enhancement programs. MSBSVET is the regulatory body and MSSU is a recently established skills university. MSInS is a relatively new society created to promote and incubate start-ups and entrepreneurial tasks. Complementary capabilities of SEEID’s sub-units and the institutional arrangement created for DAKSH will enable institutional cohesion and collaboration. MSSDS, MSBSVET, and MSInS have sharply defined and well understood objectives, agile organizational structures and processes, and specialized personnel that enable them to rapidly launch and manage key government programs around skilling, regulation, innovation, and entrepreneurship. DVET and CSDEE are institutions with a long history, significant experience in implementing federal and State skills and employment programs, and a strong presence across the State with offices/institutions at divisional and district levels with dedicated human resources. While DVET manages its own skills training institutions, CSDEE is the key implementation partner of MSSDS and MSInS at the divisional, and district levels. DVET, CSDEE, MSSDS, and MSBSVET have prior experience of implementing Bank-financed operations. Thus, SEEID and its IAs are well-positioned to plan, manage, and monitor the Program. B. Results Monitoring and Evaluation 39. The GoM’s SDC, its associated applications and data management and analysis platforms, and other government data, records, documents, orders, and notifications will be the primary data sources for monitoring Program outcomes. An M&E agency may be engaged to support the IAs in concurrently collating and monitoring results for continuous, rigorous, and effective program monitoring, learning and implementation. To better understand factors and interventions contributing to quality improvements, the GoM will be encouraged to undertake studies/impact evaluations for implementation effectiveness. Implementation support missions as in-depth Program implementation review mechanisms will be undertaken at least twice a year by the World Bank in collaboration with the GoM. C. Disbursement Arrangements 40. The Program will use DLIs for disbursement. Most of the DLIs are scalable, with funds to be disbursed in proportion to results achieved. Disbursement will be eligible for prior results achieved between the date of concept review (June 1, 2023), and the date of signing of the legal agreement up to 25 percent of the PforR financing proceeds (US$48.75 million). When actions (including prior results) are not achieved in any particular year, the allocated amount may be carried over to the subsequent year. Conversely, if targets are reached before deadlines, disbursement may be made earlier, after clearance from the World Bank. D. Capacity Building 41. Capacity building initiatives are deeply woven into the Program ’s design and incentivized through integration into the Results Framework and DLIs. The Program requires SEEID and its IAs and administrative and academic officials to possess significant capacity in implementation, monitoring, learning, and improvement. Institutional strengthening is a core priority of the Program. Officials will be provided capacity building in skills gap assessments, planning and Page 18 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) management, administrative and academic monitoring, and leveraging data to ensure an improved focus on student needs. This will help unlock the full potential of a governance and monitoring system and LMIS, strengthen the entire training cycle, and enhance quality assurance and accreditation functions to improve performance of training institutions. The Program will directly support the enhancement of quality of skills and entrepreneurship training through the establishment of centers dedicated to conduct training of master trainers, trainers, and assessors on subject matter, pedagogy, and assessments. System capacity to meaningfully focus on disadvantaged groups, engage with industry, and support innovation and entrepreneurship will be upgraded through strategies and models of engagement, measurement tools and indices, innovative financing, and training of officials of dedicated institution. The Program will build capacity of the skilling system to respond effectively to future shocks, such as pandemics and climate change, by training on and supporting innovation in green skills, building greater systemic resilience and rapid response mechanisms in crises, including through digital tools for training. IV. ASSESSMENT SUMMARY A. Technical (including program economic evaluation) 42. The Program holds strategic relevance by aligning with key government priorities, addressing challenges in Maharashtra's skilling ecosystem, leveraging established institutional frameworks, and strategically aiming to revamp the State's skills system. By aligning with existing government programs and frameworks, the Program positions itself strategically to capitalize on shared understanding of existing programs, and contribute effectively to common goals in skilling, employment, innovation, and entrepreneurship. Creating robust long term institutional structures through the much-needed support to the ITI system is a particularly critical strategic need. The Program strategically embeds evidence- based principles to enhance the skilling systems. The technical robustness is evident through its focus on addressing industry and student needs, building foundational and market-relevant skills, promoting mobility across skilling and education, and ensuring ownership and accountability by reducing information gaps. The Program aims to bolster the capacity of trainers and instructors by addressing gaps in industry experience and continuous professional development. It emphasizes the importance of evidence in Program design by prioritizing student assessments. Additionally, the Program targets quality assurance by addressing the absence of training of trainers on assessments and promotes greater contextualization and equity by supporting the development of user-centric learning materials. It also prioritizes equity and inclusion in skilling, recognizing gender imbalances and implementing strategies to enhance access for disadvantaged groups. The Program's industry partnerships underscore its commitment to providing high-quality, market-aligned training and responding to evolving labor market demands, thus ensuring a technically robust and comprehensive approach to skills development. 43. The Program leverages the institutional strength of the SEEID and its experienced sub-units as IAs. While these agencies possess robust delivery units, there's a recognized need to enhance their institutional capabilities, particularly in agile planning, management, and M&E. Targeted capacity building under RA1 is planned to address these needs. Specific support is allocated to institutions like DVET, MSSDS, and MSBSVET, ensuring tailored enhancements for effective roles. The Program emphasizes the importance of creating a data-driven decision-making environment and incentivizes institutional reforms across SEEID, aligning with key outcomes in multiple RAs. 44. DAKSH is also aligned with the goals of the Paris Agreement on both mitigation and adaptation. 45. Assessment and reduction of adaptation risks. The Program has been screened for climate change impacts and disasters. Maharashtra is faced with multiple climate vulnerabilities that could worsen human capital outcomes of the State’s large young demographic, stressing the importance of focusing on opportunities provided by green growth in the Page 19 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) years to come. Climate challenges depress educational achievements and disrupt the regular academic calendar with localized closures of training institutions. Climate change affects workforce availability through food shortages and impact on health, and demand for labor by affecting viability of economic activity. 46. As described in Section II. C, there are several Program design features that will help in creating climate resilience and mitigating potential impacts from climate events on the Program outcomes. Particularly, all activities under RA2, RA3 and RA4 support education and skilling measures that will ultimately help increase the resilience level of communities. Examples include vulnerability assessment, roll out of emergency/evacuation systems, setting up of systems and programs for disaster early-warning and preparedness. Digitization initiatives for continuity of access during climate induced natural disasters will be ensured. Partnerships with the SCGJ, as well as PPPs for green financing and improving the participation of climate vulnerable groups such as women and PwDs in skilling programs will be supported. All the four RAs have been designed to facilitate an equitable transition to a carbon neutral economy by focusing on innovation, entrepreneurship, and partnerships for climate technology and sustainability in sectors that aid low-carbon and climate resilient development. For those activities, the adaptation assessment confirmed that there is no material risk from climate hazards to achieve their intended outcome. For activities that can be impacted by climate hazards - in this case upgradation of physical infrastructure under RA1 - several measures have been incorporated in the design of the Program to minimize these risks and bolster adaptation. Those may include building design measures in learning facilities such as drainage improvement for flood control, higher plinth level to reduce/avoid damage due to flooding, and rainwater harvesting. These will ensure that newly constructed classrooms (design, quality of engineering, and materials) are resilient to potential weather-related disasters (heavy rains and winds, flooding, and extreme hot temperatures). Following incorporation of those measures, the residual adaptation risk of the Program is low, making the Program aligned with the adaptation goals of the Paris Agreement. 47. Assessment and reduction of mitigation risks. On mitigation, close to all the activities are universally aligned with the Paris Agreement's mitigation goals as per Universally Aligned list agreed amongst Multilateral Development Banks’ Paris Alignment Approach. The only activities under this Program not Universally Aligned relate to the infrastructure upgradation and SDC establishment under RA 1. The infrastructure to be built, however, is expected to use green building concepts (such as passive cooling measures, climate and disaster-resilient designs, energy efficiency measures, use of low- carbon materials, tree planting/afforestation measures) and be electrified through solar power. The data center is also envisioned to be ‘green’. These will reduce the mitigation risks for those activities to low and make this part of the Program aligned with the goals of Paris Agreement. 48. Economic Analysis. The cost-benefit analysis yields an economic internal rate of return of 20 percent. At current prices, based on State-specific estimates from the latest Periodic Labor Force Survey (2022-23), an individual skilled beneficiary/trainee supported by the Program is estimated to earn a wage premium of at least US$72 per year (for women it is at least US$47). A yearly wage-premium of 4.7 percent over workers in the unskilled elementary occupations, as classified in the National Classification of Occupations (2015), has been factored in for a period of 10 years for each employed beneficiary, as it is anticipated that workers will have to undergo some amount of reskilling/upskilling after this duration.6,7 An aggregation across Program beneficiaries (at least 160,000 skill development and/or entrepreneurship development trainees per year) with adjustments for training completion and employment, as well as inflation/price changes, yields a net wage premium of US$1.23 billion and a net present value of US$322 million at a discount rate of 6 percent, after accounting for total Program costs. Besides economic benefits, the Program is also likely to drive several 6 Kumar, R., Mandava, S. & Gopanapalli, V.S. Vocational training in India: determinants of participation and effect on wages. Empirical Res Voc Ed Train 11, 3 (2019). 7Piecing together the talent puzzle: When to redeploy, upskill, or reskill (no date) McKinsey & Company. Page 20 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) positive externalities through enhanced inclusion, female labor force participation and equity across socio-economic groups. 49. Data Protection. Large volumes of personal data, personally identifiable information and sensitive data are likely to be collected and used through the proposed LMIS. To ensure legitimate, appropriate, and proportionate use and processing of that data, the LMIS will adhere to the recently passed Digital Personal Data Protection (DPDP) Act, 2023. In practical terms, the Program will ensure that the principles enshrined in the Act are implemented through assessments of existing or development of new data governance mechanisms and data standards, data sharing protocols, rules or regulations and training, and sharing of global experience. The data collection will ensure that express consent of the beneficiary has been obtained regarding the use of the personal data collected, as provisioned in the recent DPDP Act, 2023. In addition, the data governance mechanism will adhere to the principles of the National Data Governance Policy. 50. Citizen Engagement. The Program includes beneficiary-centric and citizen engagement actions, including stakeholder consultations during Program preparation and implementation; instituting systems for participatory and bottom-up planning and monitoring across all levels of service delivery; community participation and oversight in management of initiatives especially at ITIs through institute management committees; and enhancing transparency and accountability through MIS and tech-based monitoring, as well as grievance redressal mechanisms. 51. Gender. In collaboration with the SEEID, the Program will support women to gain the skills and resource needed to become effective business owners and helps establish women-led start-ups. The Program will: (i) upgrade 15 women’s ITIs to model ITIs that will help upskill women to start businesses; (ii) hold entrepreneurship development programs aligned with Maharashtra’s skilling initiatives to build women’s technical and business skills and improve digital and financial literacy; (iv) support women’s self-help groups to formally establish startup businesses; (v) provide targeted financing to women-led start-ups; and (vi) conduct community mobilization campaigns to disseminate information on available support schemes for women and women entrepreneurs to establish businesses and overcome the challenges they face. In addition, the Program will create an enabling environment for women entrepreneurs by piloting blended finance strategies and setting up mentorship programs for women in leadership positions. Raising awareness about the PoSH Act will be undertaken to promote safety of women employees, especially in MSMEs. The Program will monitor the increased share of women-led start-ups in Maharashtra and track their business operations over the course of time. B. Fiduciary 52. As per the Integrated Fiduciary Systems Assessment (IFSA), the Program’s fiduciary systems, subject to implementation of proposed mitigation measures, will provide reasonable assurance that financing proceeds will be used for intended purposes, with due attention to the principles of economy, efficiency, effectiveness, transparency, and accountability. This is a multi-agency Program proposed to be implemented by the following eight selected IAs which are a mix of government departments, university, and registered societies: DVET, MSSDS, MSSU, MSInS, MSBSVET, CSDEE, PWD, and SEEID. The IFSA followed the World Bank’s Policy for PforR and the related directive, identified key fiduciary risks that may affect the PDO and recommended systems improvement, capacity-strengthening and risk mitigation measures that will be implemented during the life of the Program. 53. Program financial management (FM) arrangements are predicated on country systems and supported by recommended measures for institutional strengthening of the relatively newer agencies like MSSU, MSBSVET, MSSDS and MSInS. These measures include: (i) adoption of the Statutes of MSSU; (ii) preparation and adoption of the Rules and Regulations of the MSBSVET; (iii) adoption of the Finance Rules of MSInS; (iv) re-visiting the Finance Rules of MSSDS and Page 21 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) developing detailed internal process manuals; (v) upgrading the tally accounting software to Tally Prime which enables the generation of an audit trail at MSSU, MSSDS, MSInS and MSBSVET; and (vi) institutionalizing internal audit and hiring of experienced finance staff across agencies, including the PMC and SEEID. 54. DAKSH will follow the extant calendar, procedures, and systems of the GoM for budgeting. The GoM has opened a new budget line Externally Aided Project (EAP) for DAKSH (EAP-DAKSH) under SEEID, the scheme/budget code of which is awaited. Meanwhile allocations for the activities of the Program have been made under scheme/budget code 22306127 during FY22-24. SEEID will request budget allocations under either budget line, based on an Annual Program Activity and Expenditure Workplan (AWP) compiled by it. All agencies will execute payments against the allocation made under EAP- DAKSH through the Budget Estimation, Allocation and Monitoring System (BEAMS). Accounting will be decentralized at the level of IAs and will adhere to entity practices. All agencies will need to maintain separate Program accounts on a cash basis. DAKSH will rely on the internal controls instituted by the management of each agency as well as invest in strengthening these controls over the life of the Program. Given that internal audit is not a regular phenomenon across agencies, SEEID will anchor a semi-annual internal audit for the Program as per a ToR agreed with the Bank which shall cover FM, procurement, contract management (CM) and governance aspects. SEEID will be responsible for reporting program expenditures to the Bank bi-annually. Further, SEEID will compile annual Program accounts and anchor the annual Program external audit to be undertaken by the Comptroller and Auditor General of India (C&AG). The C&AG’s audit report will be submitted to the Bank within 9 months of the close of each FY. 55. Procurement arrangement. Procurement under the Program will be governed by country systems. The following table gives a brief snapshot of the procurement rules applicable for these agencies: Table 4: Procurement Rules Applicable to SEEID and its sub-components MSSU DVET, CSDEE, SEEID MSInS MSBSVET MSSDS PWD Government State Government A Society MSBSVET established A Society Department of owned Departments, relevant Registered under by Act of 2021. Registered under GoM. Relevant autonomous GoM rules apply. Societies Act, Committee Societies Act GoM rules apply. University. Goods & Services as 1860. constituted under 1860. AFR of GR of PWD dated Finances, per government Administrative Secretary of MSBSVET. MSSDS apply and 27/09/2018. Accounts, and resolution (GR) dated and Financial Experts taken from are largely in-line GeM provisions Audit 01.12.2016. Rules (AFR) of Government ITIs. with GoM for items (Accounts Government e- MSInS apply and Relevant GoM rules procurement procured on GeM Code), 20238 Marketplace (GeM) are largely in-line apply. Rules and portal. [Annex.A3] provisions for items with GoM Regulations. applies. procured on GeM9 procurement portal. Rules and Works procured Regulations. through PWD. 56. Based on the assessment of the eight IAs, certain areas of risk have been identified. This includes but is not limited to: (i) limited experience in procurement in terms of value and size; (ii) shortage of procurement staffing and adequate capacity; (iii) lack of standard bid documents (SBDs) for all categories of procurement; (iv) absence of an adequate and comprehensive procurement MIS; (v) absence of robust complaints handling mechanism; and (vi) multiple Government Orders (GOs) and circulars related to procurement. Hence, the need to clearly articulate applicable bid 8 The MSSU Accounts Code 2023 specifies that the University shall follow the procedure prescribed in GoM GR of 01.12.2016. Page 22 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) documents, procurement methods, processes, and procedures for goods, works and services; and audit and review of the procurement/ CM related aspects. 57. The PforR will be governed by the World Bank’s Anti-Corruption Guidelines (ACG). The World Bank Guideline on Preventing and Combating Fraud and Corruption in PforR Financing dated Feb 1, 2012, and revised on July 10, 2015, will be applicable for the whole Program. The Program will support institutional assessments, process and systems’ enhancements and capacity augmentation of all IAs with the aim of strengthening fiduciary functions, including internal controls, at these agencies. Some of these fiduciary risks are proposed to be mitigated by way of Program Action Plan (PAP) listed under Annex 5. More details about the findings of IFSA, and risk mitigation measures are available in Annex 3. 58. Exclusion: Based on the assessment, large value contract above OPRC threshold are not allowed within the Program boundary: (i) works, estimated to cost US$75 million equivalent or more per contract; (ii) goods, estimated to cost US$50 million equivalent or more per contract; (iii) non-consulting services, estimated to cost US$50 million equivalent or more per contract; and (iv) consultant services, estimated to cost US$20 million equivalent or more per contract. C. Environmental and Social 59. An Environmental and Social Systems Assessment10 (ESSA) was conducted to determine the GoM systems’ capacity to manage the Environmental and Social (E&S) effects under the Program and consistency with the core principles and exclusion of activities ineligible for PforR financing. The Program will contribute to significant E&S benefits through infusion of green building/infrastructure norms, integration of Environmental Health and Safety/Occupational Health and Safety (EHS/OHS) aspects in curriculum, strengthening of inclusion of women and disadvantaged groups in the State’s skilling ecosystem, improved service delivery, and enhanced quality of skill training and apprenticeship programs. 60. The key environmental risks or impacts of the program are rated moderate. The Program will support minor infrastructure upgradation of MSSU, its regional satellite campuses, innovation hubs, ITIs, and the establishment of training-cum-placement centers and common assessment centers within existing institutions. The risks are primarily related to planning, construction and operation of buildings and associated infrastructure, and include health, hygiene, safety, climate resilience, construction management and maintenance aspects. 61. The social risk for the program is also rated as moderate, since they are related to: (i) inequitable access to program benefits; (ii) limited participation of vulnerable groups; and (iii) employees/workers’ welfare during implementation of the program which includes civil works to refurbish the model ITIs. Systems and procedures will be put in place to: (i) increase equitable access and participation of women and other vulnerable groups in skilling opportunities especially in remote and marginalized areas; (ii) enhance stakeholder-led planning of skill development programs to ensure access to high-quality market led trainings; (iii) improve feedback, grievance management, monitoring and supervision of social risk management of the activities under the program; and (iv) strengthen capacity on welfare, health and safety of trainers/assessors, staff and workers employed within the IAs. 62. Even though the country’s environment and social regulations and legislative framework are adequate to address the core activities under the identified RAs, the institutional and operational mechanisms of IAs to undertake E&S risk management will be augmented with capacity, resources, and systems to monitor and report on citizens’ engagement 10 The state-level ESSA consultation was held on November 23, 2023, in the Central Hall, MSSU, Mumbai. The ESSA has been disclosed on the World Bank website. Page 23 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra - (DAKSH) Maharashtra (P177965) and outreach, social inclusion, grievance management, employees’ welfare, green building/infrastructure norms and integrating environment, health and safety in the curriculum. 63. Climate. The DAKSH Program offers several opportunities to generate both climate adaptation and mitigation co- benefits. The strategic focus on ensuring that physical infrastructure and learning spaces are resilient to climate change to reduce disruptions to learning of students in the short, medium, and long-term; expanding the course curriculum to include modules on climate change and green skills; and skilling and employment of climate vulnerable groups such as women and PwDs ensure climate co-benefits. The adaptation and mitigation measures considered for making the Program Paris Aligned are described in paragraph 15. 64. Grievance Redress. Communities and individuals who believe that they are adversely affected because of a Bank supported PforR Program, as defined by the applicable policy and procedures, may submit complaints to the existing program grievance mechanism or the Bank’s Grievance Redress Service (GRS). The GRS ensures that complaints received are promptly reviewed to address pertinent concerns. Project affected communities and individuals may submit their complaint to the Bank’s independent Accountability Mechanism (AM). The AM houses the Inspection Panel, which determines whether harm occurred, or could occur, because of Bank non-compliance with its policies and procedures, and the Dispute Resolution Service, which provides communities and borrowers with the opportunity to address complaints through dispute resolution. Complaints may be submitted at any time after concerns have been brought directly to the Bank's attention, and Bank Management has been given an opportunity to respond. For information on how to submit complaints to the Bank’s GRS, visit https://www.worldbank.org/GRS. For information on how to submit complaints to the Bank’s AM, visit https://accountability.worldbank.org. V. RISK 65. The overall risk of the Program is Substantial. 66. Technical Design of Program (Substantial): Addressing the skills development requirements of different districts with their unique mix of beneficiaries, socio-economic conditions, and needs of industries will require a context-specific response. As a result, strategies and delivery methods may vary across districts resulting in a complex program. To address this risk, the Program will ensure that: (i) a coherent institutional framework is created and staffed; (ii) a unifying data center will ensure strong MIS mechanisms; and (iii) grant funds approved under two trust funds11 supporting the Program , will finance capacity building in challenging areas so that pilots can be created for potential replication; and (iv) special innovative instruments will be used for inclusion and women’s participation in the labor force. 67. Fiduciary (Substantial): Given the complex engagement of activities involving several agencies with varied capacity, there is a risk that effective coordination/compliance with various fiduciary requirements will be challenging. Some risks followed by mitigation measures include: (i) Complicated fiduciary processes and short staffing and limited capacity of FM and procurement functions across agencies. As a mitigation measure, all IAs will ensure that they have a procurement official assigned for DAKSH and appropriate capacity building is carried out through trainings, workshops, and handholding support on regular basis. (ii) Multiple GOs and circulars related to procurement and non-availability of SBDs may create inconsistency and ambiguity in procurement transactions. Hence, a Procurement Section in the PMU will be designated to clearly articulate applicable bid documents, procurement methods, processes, and procedures for goods, works and services; and (iii) Budget outturns, unstructured program expenditures owing to lack of a concrete annual action plan. As a mitigation measure, an AWP will be submitted to the World Bank. 11 Korea World Bank Partnership Facility and Japan Social Development Fund of (US$3 million each) totaling US$6 million. Page 24 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) ANNEX 1. RESULTS FRAMEWORK MATRIX @#&OPS~Doctype~OPS^dynamics@padpfrannexpolicyandresult#doctemplate Program Development Objective(s) To improve skills and entrepreneurship training for enhanced employability in Maharashtra. PDO Indicators by Outcomes Baseline Period 1 Period 2 Period 3 Period 4 Closing Period To improve skills and entrepreneurship training for enhanced employability in Maharashtra Trainees completing skill training and placed in apprenticeships (disaggregated by SC/ST and women) (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 Under Government Mechanism for collection Disaggregated data on (i) Trainees completing skill (i) Trainees completing skill (i) Trainees completing skill program, (i) 160,373 of disaggregated data on SC/ST and women development courses development courses development courses trainees completed skill SC/ST and women setup collected (disaggregated reporting) (disaggregated reporting) (disaggregated reporting) have development programs, have increased by five have increased by an increased by an additional 10 (ii) 172,845 individuals in percent from baseline; (ii) additional 10 percent from percent from baseline (ii) An apprenticeships five percent increase in baseline (ii) An additional additional 10 percent increase apprenticeship placements five percent increase in in apprenticeship placements from baseline apprenticeship placements from baseline from baseline ➢Trainees completing skill training and placed in apprenticeships (women) (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2027 Mar/2029 Baseline established. N/A N/A N/A To be determined once baseline is established. ➢Trainees completing skill training and placed in apprenticeships (SC/ST) (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 Baseline established. N/A N/A N/A To be determined once baseline is established. Improved performance of ITIs (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 May 01, 2024 Page 25 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) Basic performance (i) Performance Evaluation No target 53 selected ITIs have No target 53 selected ITIs have evaluation framework at Framework for ITIs has improved their score, on improved their score on central level been approved and average, by five percent average, by an additional five institutionalized by SEEID; over baseline on the percent over baseline on the (ii) Baseline for 53 selected notified ITI Performance notified ITI Performance ITIs on the notified Evaluation Framework Evaluation Framework Performance Evaluation Framework has been established by SEEID Strengthened training of trainers and assessors (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 No dedicated state or No target 100 trainers and 50 No target An additional 200 trainers An additional 300 trainers and regional centres/ facilities assessors have successfully and 100 assessors have 150 assessors have for training of trainers and completed training in the successfully completed successfully completed assessors training centers training in the training training in the training centers established by SEEID centers established by established by SEEID SEEID Private capital and partnerships mobilized for improved women’s entrepreneurship (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 No dedicated private A biennial Women’s No target Second edition of the 15 percent increase in (i) Third edition of the capital for women's Entrepreneurship Index Women’s startups established that Women’s Entrepreneurship entrepreneurship has been developed, Entrepreneurship Index are women-led Index has been reported; (ii) approved, and instituted has been reported 40 percent of the established by SEEID with a baseline women-led startups remain established and reported operational for at least 12 in the First edition of the months from establishment index Private capital and partnerships mobilized for improved skill development programs in ITIs (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 Many PPPs exist, but no Framework for private 10 ITIs have established Review report of the An additional 10 ITIs have Review report of the clear strategy for sector collaboration with PPPs in line with the established PPPs in 10 ITIs established PPPs in line established PPPs in an partnerships ITIs in Maharashtra approved framework for published with the approved additional 10 ITIs published through PPPs for skill private sector framework for private development has been collaboration sector collaboration approved by SEEID Intermediate Indicators by Results Areas May 01, 2024 Page 26 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) Baseline Period 1 Period 2 Period 3 Period 4 Closing Period Institutional strengthening for high-quality market relevant training with robust MIS Integrated decentralized SDC for real-time monitoring of skill development established (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 No integrated MIS for skill (i) Functional specification Integrated SDC has been DSDP monitoring (i) DSDP monitoring (i) DSDP monitoring development and document for the deployed and is accessible dashboard for 10 districts dashboard for an dashboard for all 36 districts is fragmented data development of an online with a data is functional and accessible additional 10 districts is functional and accessible integrated SDC with data monitoring dashboard for online through the functional and accessible online through the integrated monitoring dashboards the six state-level skilling integrated SDC online through the SDC; (ii) Application has been approved by agencies, pursuant to the integrated SDC; (ii) First Programming Interface (API) SEEID; (ii) Skills data has approved functional annual data accuracy audit Integration of the SDC with been submitted by the six specification document of the integrated SDC has the national skilling portal has state-level skilling agencies been completed been completed and from 36 districts to support the development of an integrated SDC with data monitoring dashboards IPC established (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 No IPC Action plan for the Establishment of the IPC IPC is operational with at IPC data monitoring IPC data monitoring establishment of an IPC has been completed, least 75 percent of staff dashboard is functional dashboard is functional and with linkages to the pursuant to the approved hired and accessible online, accessible online, through the integrated SDC has been action plan through the integrated integrated SDC, with relevant approved by SEEID SDC, with relevant data data sourced and reported sourced and reported Enhanced institutional architecture of MSSU for market-relevant skilling (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 MSSU in nascent stage of (i) Action plan for full MSSU has rolled out five MSSU has rolled out an No target MSSU has initiated financial establishment operationalization of the new skilling courses which additional five new sustainability by generating MSSU has been developed are accessible to trainees courses which are revenue through student and and approved by relevant accessible to trainees accreditation fees state authorities; (ii) MSSU has established partnerships with two international universities, May 01, 2024 Page 27 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) in line with the approved action plan Systems strengthened and/or developed for registering, tracking, escalating and closing the complaint after complainant feedback (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 System for grievance System augmented to 80 percent of the 90 percent of grievances 90 percent of grievances 90 percent of grievances redressal is not optimal track compliances from grievances redressed and redressed and closed redressed and closed redressed and closed multiple sources at one closed following following complainant following complainant following complainant data point on the MIS complainant satisfaction satisfaction within 15 days satisfaction within 15 days satisfaction within 15 days of within 15 days of of registration of registration registration registration Citizen and customer feedback for improved accountability of Institutions (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2028 Citizen and customer Protocol for (i) Beneficiary Baseline survey and No Target Mid-term beneficiary End-term beneficiary feedback feedback system is not feedback surveys; and (iii) reports on beneficiary feedback survey survey implemented optimal dissemination of findings feedback and satisfaction implemented to citizens and customers for relevant services (for services and activities completed within Program scope) established Improving the quality and market relevance of skill development programs at the training provider level Enhanced institutional architecture of SEEID for training of trainers and assessors (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 Dedicated state or regional (i) Strategy approved by No target An additional two training An additional two training All six established training centers for training of SEEID for the centers have been centers have been centers continue to be fully trainers and assessors yet establishment of training established and made fully established and made fully functional, as per the strategy to be established centers to provide market- functional by SEEID, as per functional by SEEID, as per developed relevant training for the strategy developed the strategy developed trainers and assessors; (ii) Two training centers have been established and made fully functional by SEEID, as per the strategy developed Use of high-quality contextualized TLM in blended skills and entrepreneurship courses (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 Low availability of blended Blended and vernacular Blended and vernacular No target Blended and vernacular Blended and vernacular TLM and vernacular TLM for TLM has been developed TLM has been developed TLM has been developed has been developed for an for five skill development for an additional five skill for an additional five skill additional five skill May 01, 2024 Page 28 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) skill development & & entrepreneurship development & development & development & entrepreneurship courses courses and made entrepreneurship courses entrepreneurship courses entrepreneurship courses and accessible for trainees in and made accessible for and made accessible for made accessible for trainees in established training trainees in established trainees in established established training centers centers training centers training centers Enhancing access for women and disadvantaged groups Increased access to skill development programs for SCs/STs (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 (i) 7.5 percent of trainees No target Participation of STs and No target Participation of STs and No target enrolled are SC; (ii) 4.4 SCs in skills development SCs in skills development percent of trainees programs has increased by programs has increased by enrolled are ST one percentage point, an additional one each, from baseline percentage point, each, from baseline Increased access to skill development programs for women (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 33.6 percent of trainees No target No target Participation of women in No target Participation of women in skill enrolled are women skill development development programs has programs has increased by increased by two additional at least two percentage percentage points from points from baseline baseline Incubation centers and Women Entrepreneurship Cells (WECs) operational at women’s ITIs (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 No women’s ITIs have No target Incubation centers and Incubation centers and No target Incubation centers and WECs incubation centers or WECs operational in five WECs operational in an operational in an additional WECs women ITIs additional five women ITIs five women ITIs Expanding skills and entrepreneurship training through PPPs Increased access to entrepreneurship development programs (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 No entrepreneurship Entrepreneurship 5,000 trainees have An additional 5,000 An additional 10,000 An additional 10,000 trainees development programs development module has successfully completed the trainees have successfully trainees have successfully have successfully completed operating been created and entrepreneurship completed the completed the the entrepreneurship approved by SEEID development module entrepreneurship entrepreneurship development module development module development module Increased access to incubation (Text) Jun/2023 Mar/2025 Mar/2026 Mar/2027 Mar/2028 Mar/2029 May 01, 2024 Page 29 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) 18 incubators established Review of current start-up Two incubators have been An additional two An additional two No target and operational in the policy has been completed established and are incubators have been incubators have been state with the assistance with recommendations for operational in the state established and are established and are of SEEID improvement approved by operational in the state operational in the state SEEID Disbursement Linked Indicators (DLI) Period Period Definition Timeline Period 1 Prior Result (2023-2024) Period 2 Year 1 (2024-2025) Period 3 Year 2 (2025-2026) Period 4 Year 3 (2026-2027) Period 5 Year 4 (2027-2028) Period 6 Year 5 (2028-2029) Baseline Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 1 : Integrated decentralized Skills Data Center (SDC) for real-time monitoring of skill development (Text ) Fragmented data and (i) Functional (i) Skills data has been (i) Integrated SDC has (i) DSDP monitoring (i) DSDP monitoring (i) DSDP monitoring no integrated MIS for specification submitted by the six been deployed and is dashboard for 10 dashboard for an dashboard for all 36 SD; No IPC document for the state-level skilling accessible online with districts is functional additional 10 districts districts is functional and development of an agencies and from 36 data monitoring and accessible online, is functional and accessible online, through integrated SDC with districts to support dashboards for the six through the accessible online, the integrated SDC; (ii) data monitoring the development of state-level skilling integrated SDC; (ii) IPC through the API Integration of the SDC dashboards has been an integrated SDC agencies, pursuant to data monitoring integrated SDC; (ii) with the national skilling approved by SEEID; (ii) with data monitoring the approved dashboard is First annual data portal has been Action plan for the dashboards; (ii) functional functional and accuracy audit of the completed establishment of an Establishment of the specification accessible online, integrated SDC has International IPC has been document; (ii) IPC is through the been completed Placement Centre completed, pursuant operational with at integrated SDC, with (IPC) with linkages to to the approved least 75% of staff relevant data sourced the integrated SDC action plan hired and reported May 01, 2024 Page 30 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) has been approved by SEEID 0.00 7,500,000.00 5,030,000.00 3,970,000.00 3,850,000.00 3,850,000.00 5,050,000.00 DLI allocation 29,250,000.00 As a % of Total DLI Allocation 15.04% 2 : Improved apprenticeships and performance of ITIs though DVET strengthening (Text ) (i) Basic performance Performance Baseline for 53 NA (i) 53 selected ITIs An additional five (i) 53 selected ITIs have evaluation framework Evaluation Framework selected ITIs on the have improved their percent increase in improved their score on for ITI at central level; for ITIs has been notified Performance score, on average, by apprenticeship average, by an additional (ii) Under Government approved and Evaluation Framework five percent over placements from five percent over baseline program, 172,845 institutionalized by has been established baseline on the baseline on the notified ITI individuals in SEEID by SEEID notified ITI Performance Evaluation apprenticeships Performance Framework (ii) An Evaluation Framework additional 10 percent (ii) 10 percent increase in apprenticeship increase in placements from baseline apprenticeship placements from baseline 0.00 10,000,000.00 2,000,000.00 0.00 9,000,000.00 4,500,000.00 13,500,000.00 DLI allocation 39,000,000.00 As a % of Total DLI Allocation 20.05% 3 : Enhanced institutional architecture of MSSU for market-relevant skilling and of SEEID for training of trainers and assessors (Text ) (i) MSSU in nascent (i) Action plan for full (i) MSSU has (i) MSSU has (i) MSSU has (i) An additional two (i) MSSU has initiated stage of operationalization of established introduced five new introduced an training centers have financial sustainability by establishment; (ii) the MSSU has been partnerships with at skilling courses which additional 5 new been established by generating revenue Dedicated state or developed and least two international are accessible to skilling courses which SEEID and made through student and regional centers for approved by relevant universities, in line trainees; (ii) 100 are accessible to operational for accreditation fees; (ii) An training of trainers state authorities; (ii) with the approved trainers and 50 trainees; (ii) An trainers and assessors, additional 300 trainers and assessors yet to Strategy approved by action plan; (ii) Two assessors have additional two training as per the strategy and 150 assessors have be established SEEID for training centers have successfully centers have been developed; (ii) An successfully completed establishment of been established by completed market established by SEEID additional 200 trainers market relevant training training centers to SEEID and made relevant training in and made operational and 100 assessors in the training centers provide market- operational for the training centers for trainers and have successfully established by SEEID relevant training for trainers and assessors, established by SEEID assessors, as per the completed market trainers and assessors as per the strategy strategy developed relevant training in developed the training centers established by SEEID May 01, 2024 Page 31 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) 0.00 10,000,000.00 6,000,000.00 4,500,000.00 6,000,000.00 6,000,000.00 6,012,500.00 DLI allocation 38,512,500.00 As a % of Total DLI Allocation 19.8% 4 : Increased access to skill development programs for women, SCs and STs by SEEID (Text ) Percentage share of No target No target Participation of SCs Participation of Participation of SCs Participation of women in trainees enrolled at and STs in skills women in skills and STs in skills skills development baseline: a) SCs: 7.5; development development development programs has increased b) STs: 4.4; and c) programs has programs has programs has by two additional Women: 33.6 increased by at least increased by two increased by at least percentage points, from one percentage point, percentage points one additional baseline each, from baseline from baseline percentage point, each, from baseline 0.00 0.00 0.00 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00 DLI allocation 40,000,000.00 As a % of Total DLI Allocation 20.56% 5 : Private capital and partnerships mobilized for improved skill development programs in ITIs and women’s entrepreneurship by SEEID (Text ) (i) Many PPPs exist in Framework for private A biennial Women’s 10 ITIs have Second edition of the An additional 10 ITIs Third edition of the ITIs without a clear sector collaboration Entrepreneurship established PPPs in Women’s have established PPPs Women’s guiding strategy; (ii) with ITIs in Index has been line with the approved Entrepreneurship in line with the Entrepreneurship Index No dedicated tool to Maharashtra through developed, approved, framework for private Index has been approved framework has been reported measure and guide PPPs for skills and instituted by sector collaboration reported for private sector private capital and development has SEEID with a baseline collaboration partnerships for been approved by established and women's SEEID reported in the First entrepreneurship edition of the index 0.00 7,500,000.00 5,750,000.00 5,000,000.00 2,500,000.00 5,000,000.00 2,500,000.00 DLI allocation 28,250,000.00 As a % of Total DLI Allocation 14.52% 6 : Increased access to entrepreneurship development programs and incubation through SEEID (Text ) 18 incubators Entrepreneurship Review of current (i) 5,000 trainees have (i) An additional 5,000 (i) An additional An additional 10,000 established and development module start-up policy has successfully trainees have 10,000 trainees have trainees have successfully operational in the has been created and been completed with completed the successfully successfully completed state with the approved by SEEID recommendations for entrepreneurship completed the completed the entrepreneurship assistance of SEEID improvement development module; entrepreneurship entrepreneurship development module approved by SEEID (ii) Two incubators development module; development module; have been established (ii) An additional two (ii) An additional two and are operational in incubators have been incubators have been the state established and are established and are May 01, 2024 Page 32 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra(P177965) operational in the operational in the state state 0.00 3,000,000.00 1,500,000.00 3,500,000.00 3,500,000.00 5,000,000.00 3,000,000.00 DLI allocation 19,500,000.00 As a % of Total DLI Allocation 10.03% May 01, 2024 Page 33 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) M&E Plan: PDO Indicators by PDO Outcomes To improve skills and entrepreneurship training for enhanced employability in Maharashtra Trainees completing skill training and placed in apprenticeships (disaggregated by SC/ST and women) (Text) This indicator focuses on tracking improvements in the (i) completion rates of skills development programs, and (ii) apprenticeship placements across the State. These are the targets for (i): Period 3 - Increase by 8,019 (to a total of 168,392), Period 4 - Increase by 24,056 (to a total of 184,429), Period 5 - Increase by 40,093 (to a total of 200,466). The total targeted Description increase is 72,168 by the end of the Program. These are the targets for (ii): Period 3 - Increase by 8,642 (to a total of 181,487), Period 4 - Increase by 17,285 (to a total of 190,130), Period 5 - Increase by 34,569 (to a total of 207,414). The total targeted increase is 60,496 by the end of the Program. Frequency Annual (except Years 1 and 2) Data source SEEID’s records/reports/MIS data Methodology for Data on completion of skills development programs and apprenticeships collected for record-keeping, Data Collection including through the SDC Responsibility for SEEID Data Collection Improved performance of ITIs (Text) This indicator focuses on development and implementation of a PEF for ITIs that is then applied to and Description used to track performance improvements across 53 selected ITIs across the State. Frequency Annual (except Years 2 and 4) Data source SEEID’s records/reports/MIS data Methodology for Report submitted on the ITI PEF and data on the performance of selected ITIs collected for record-keeping, Data Collection including through the SDC Responsibility for SEEID Data Collection Strengthened training of trainers and assessors (Text) This indicator focuses on tracking progress in the training of trainers and assessors in established training Description centers. By the end of the Program, a total of 600 trainers and 300 assessors are targeted to have successfully completed training. Frequency Annual (except Years 1 and 3) Data source SEEID’s records/reports/MIS data Methodology for Data on training of trainers and assessors collected for record-keeping Data Collection Responsibility for SEEID Data Collection Private capital and partnerships mobilized for improved women’s entrepreneurship (Text) This indicator focuses on establishing and tracking progress on a women’s entrepreneurship index in the Description State, as well as share of women-led start-ups established and operational in Maharashtra. Frequency Annual (except Year 1) SEEID’s records/reports/MIS data. Data source The baseline for number of women-led start-ups in Maharashtra is obtained from the ‘States’ Startup Ranking 2021 – Maharashtra’ report published by the Department of Promotion of Industry and Internal Page 34 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Trade, Ministry of Commerce and Industry, GoI. Report submitted on women’s entrepreneurship framework and women -led start-ups established and Methodology for operational with support of SEEID, and biennial progress reports submitted on the score of the women’s Data Collection entrepreneurship index. Responsibility for SEEID Data Collection Private capital and partnerships mobilized for improved skill development programs in ITIs (Text) Description This indicator tracks the institutionalization and implementation of a PPP framework for ITIs Frequency Annual Data source SEEID’s records/reports/MIS data Methodology for Report submitted on the PPP framework for ITIs and the status of operationalization of the framework in Data Collection ITIs, as well as a review of established PPPs to measure their progress/success Responsibility for SEEID Data Collection M&E Plan: Intermediate Results Indicators by RAs Institutional strengthening for high-quality market relevant training with robust MIS Integrated decentralized Skills Data Center (SDC) for real-time monitoring of skill development established (Text) This indicator focuses on implementing an integrated SDC that meets the data and planning needs of all six sub-units of SEEID as well as all districts of the State, enabling real-time monitoring of skill development. Description The SDC will provide online access to data analytics, reports, and information related to skill development and will feature dashboards to monitor DSDPs Frequency Annual Data source SEEID’s records/reports/MIS data District-wise data on skills development programs collected directly from the SDC and its dashboards, as Methodology for well as reports submitted on the status of development, functionalities of the SDC, and data accuracy audit Data Collection and integration with the national skilling portal. Responsibility for SEEID Data Collection IPC established (Text) Description This indicator focuses on tracking the establishment of the IPC Frequency Annual Data source SEEID’s records/reports/MIS data Methodology for Reports submitted on the status of IPC’s operations, personnel, and data, including but not limited to Data Collection annual report(s) Responsibility for SEEID Data Collection Enhanced institutional architecture of MSSU for market-relevant skilling (Text) Description This indicator focuses on tracking the operationalization of the MSSU Frequency Annual (except Year 4) Data source SEEID’s records/reports/MIS data Methodology for Reports submitted on the status of MSSU’s operations, partnerships and financials, including but not Data Collection limited to annual report(s) Responsibility for SEEID Page 35 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Data Collection Systems strengthened and/or developed for registering, tracking, escalating and closing the complaint after complainant feedback (Text) Description This indicator focuses on the development and/or strengthening of a robust grievance redressal system Frequency Annual Data source Grievance Redressal System Methodology for Reports submitted on the status of and generated from the Grievance Redressal System Data Collection Responsibility for SEEID Data Collection Citizen and customer feedback for improved accountability of Institutions (Text) This indicator focuses on the development and/or strengthening of a robust citizen and customer feedback Description system Frequency Annual (except Year 3) Data source Beneficiary Feedback and Satisfaction Surveys Methodology for Reports submitted on the status of and generated from the beneficiary feedback and satisfaction surveys Data Collection Responsibility for SEEID Data Collection Improving the quality and market relevance of skill development programs at the training provider level Enhanced institutional architecture of SEEID for training of trainers and assessors (Text) This indicator focuses on tracking the establishment of 6 training centers by SEEID and their use for Description enabling training of trainers and assessors Frequency Annual (except Years 2) Data source SEEID’ s records/reports/MIS data Methodology for Report submitted on the operational status of training centers of SEEID Data Collection Responsibility for SEEID Data Collection Use of high-quality contextualized TLM in blended skills and entrepreneurship courses (Text) This indicator focuses on the development of TLM that are accessible in establishing training centers by Description being (i) useful across all modes of training including hybrid and (ii) contextual including by being available in vernacular languages Frequency Annual (except Year 3) Data source SEEID’s records/reports/MIS data Methodology for TLM developed for blended learning and in vernacular language submitted Data Collection Responsibility for SEEID Data Collection Enhancing access for women and disadvantaged groups Increased access to skill development programs for SCs/STs (Text) This indicator focuses on tracking improvements in the percentage of SCs and STs accessing skill Description development programs in Maharashtra Frequency Every alternate year (starting from Year 2) Page 36 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Data source SEEID’s records/reports/MIS data Methodology for Data on participation of SC/STs in skills development programs collected for record-keeping, including Data Collection through the SDC Responsibility for SEEID Data Collection Increased access to skill development programs for women (Text) This indicator focuses on tracking improvements in the percentage of women accessing skill development Description programs in Maharashtra Frequency Every alternate year (starting from Year 3) Data source SEEID’s records/reports/MIS data Methodology for Data on participation of women in skills development programs collected for record-keeping, including Data Collection through the SDC Responsibility for SEEID Data Collection Incubation centers and Women Entrepreneurship Cells (WECs) operational at women’s ITIs (Text) This indicator focuses on tracking access to support for innovation and entrepreneurship across Description Maharashtra through the provision of incubation centers and WECs in women’s ITIs Frequency Annual (except Years 1 and 4) Data source SEEID’s records/reports/MIS data Methodology for Report submitted on the operational status of incubation centers and I in ITIs Data Collection Responsibility for SEEID Data Collection Expanding skills and entrepreneurship training through PPPs Increased access to entrepreneurship development programs (Text) This indicator tracks development and implementation of an entrepreneurship development module in the Description State, whether it is offered as an integrated part of another skills development program or offered as a stand-alone course. Frequency Annual Data source SEEID’s records/reports/MIS data Methodology for Data on development of entrepreneurship development module and trainees completing entrepreneurship Data Collection development modules collected for record-keeping, including through the SDC Responsibility for SEEID Data Collection Increased access to incubation (Text) The indicator supports the review of the State’s start up policy and enables the establishment of incubation Description centers across different regions of the State. Frequency Annual (except Year 5) Data source SEEID’s records/reports/MIS data Methodology for Report submitted on the operational status of incubators in Maharashtra supported by SEEID Data Collection Responsibility for SEEID Data Collection Page 37 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Verification Protocol Table: DLIs 1 : Integrated decentralized Skills Data Center (SDC) for real-time monitoring of skill development (Text) Prior Results - (i) US$4,000,000 on achievement; (ii) US$3,500,000 on achievement Year 1 - (i) US$40,000 for each of the six state-level skill agencies and 36 districts (up to US$1,680,000 million); (ii) US$3,350,000 on achievement Formula Year 2 - (i) US$2,120,000 on achievement; (ii) US$1,850,000 on achievement Year 3 - (i) US$200,000 for each additional district (up to US$2,000,000); (ii) US$1,850,000 on achievement Year 4 - (i) US$200,000 for each additional district (up to US$2,000,000); (ii) US$1,850,000 on achievement Year 5 - (i) US$200,000 for each additional district (up to US$3,200,000); (ii) US$1,850,000 on achievement This indicator focuses on implementing an integrated SDC that meets the data and planning needs of all six sub-units of SEEID (i.e. DVET, MSSDS, MSBSVET, MSSU, CSDEE and MSInS) as well as all districts of the Description State, enabling real-time monitoring of SD. The SDC will provide online access to data analytics, reports, and information related to skill development and will feature dashboards to monitor DSDPs. The indicator also includes the establishment of an IPC with data-linkages to the integrated SDC. Data source/ Agency SEEID’ s records/reports/MIS data Verification Entity IVA For Prior Results, the SEEID will submit a final, approved functional specification document that defines in detail the management information needs of all six sub-units of SEEID and all districts along with a description of the functions and capabilities of the SDC portal along with the data monitoring dashboards. SEEID will also submit a detailed action plan for establishment of the IPC with linkages to the SDC. For year 1, the target is achieved when the SDC centrally sources and contains necessary skills data from all six state-level skilling agencies and 36 districts and when the superstructure of the IPC is established as per the approved action plan. For year 2, the target is achieved when the IVA is able to review a functional SDC online that fulfils all of the requirements of the approved SDC functional specifications and when evidence is submitted of the completed construction of the IPC and employment (hiring and contracting) of at least 75 percent of staff Procedure for functional operationalization of the IPC. For years 3, 4 and 5 the target is achieved when the SDC features an accessible online monitoring dashboard which produces detailed reports to support DSDPs in at least 10, 20 and 36 districts, respectively. In addition to the above, for year 3, an IPC data monitoring dashboard should be made available online, through the SDC, with all data sourced and reported through a functional monitoring dashboard. For year 4, SEEID will also submit a final report capturing the results of the first annual data accuracy audit undertaken by an independent agency, using a globally-accepted methodology for sample-based verification of key data metrics of the SDC. For year 5, the target is achieved when data from the SDC is accessible on the national skilling portal through an integrated API. 2 : Improved apprenticeships and performance of ITIs though DVET strengthening (Text) Prior Results - US$10,000,000 on achievement Year 1 - (i) US$2,000,000 on achievement Formula Year 3 - (i) US$900,000 for each percentage improvement (up to US$4,500,000); (ii) US$900,000 for each percentage improvement (up to US$4,500,000) Year 4 - US$900,000 for each percentage improvement (up to US$4,500,000) Page 38 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Year 5 – (i) US$900,000 for each percentage improvement (up to US$4,500,000); ii) US$900,000 for each percentage improvement (up to US$9,000,000) This indicator focuses on development and implementation of a PEF for ITIs that is then applied to and used Description to track performance improvements across 53 selected ITIs across the State. The indicator further tracks growth in the percentage of apprenticeship placements in the State. Data source/ Agency SEEID’ s records/reports/MIS data Verification Entity IVA For Prior Results, SEEID will submit a government notification of an approved PEF that includes a clear methodology for calculating outcomes-based levels of performances and associated scores of ITIs across all the areas of operation considered essential for a model ITI in Maharashtra. For year 1, the target is achieved when PEF baseline scores for 53 selected ITIs are measured and reported. For years 3 (i) and 5 (i), the target is achieved when the selected ITIs improved their average scores on the Procedure PEF by the agreed percentage over the baseline. The agreed percentage target for Year 3 is 5 percent over baseline, and for Year 5 is an additional 5 percent over baseline (i.e. a net improvement of 10 percent over baseline). For years 3 (ii), the target is achieved when the apprenticeship placements in the State increases by 10 percent over the baseline, and for Years 4 and 5 (ii) by an additional 5 and an additional 10 percent, respectively, over the baseline. 3 : Enhanced institutional architecture of MSSU for market-relevant skilling and of SEEID for training of trainers and assessors (Text) Prior Results - (i) US$5,000,000 on achievement; (ii) US$5,000,000 on achievement Year 1 - (i) US$1,500,000 for each partnership (up to US$3,000,000); (ii) US$1,500,000 for each additional training center (up to US$3,000,000) Year 2 - (i) US$600,000 for each additional course (up to US$3,000,000); (ii) US$10,000 for each additional trainer and assessor (up to US$1,000,000 for trainers and US$500,000 for assessors) Formula Year 3 - (i) US$600,000 for each additional course (up to US$3,000,000); (ii) US$1,500,000 for each additional training center (up to US$3,000,000) Year 4 - (i) US$1,500,000 for each additional training center (up to US$3,000,000); (ii) US$10,000 for each additional trainer and assessor (up to US$2,000,000 for trainers and US$1,000,000 for assessors) Year 5 - (i) US$1,512,500 on achievement; (ii) US$10,000 for each additional trainer and assessor (up to US$3,000,000 for trainers and US$1,500,000 for assessors) This indicator focuses on tracking the operationalization of the MSSU and the establishment of 6 training Description centers by SEEID and their use for enabling market-relevant training of trainers and assessors. Data source/ Agency SEEID’ s records/reports/MIS data Verification Entity IVA For Prior Results, MSSU will submit a detailed operationalization plan and SEEID will submit a strategy for establishment of training centers to provide market-relevant training for trainers and assessors. For year 1 (i), the target is achieved when MSSU provides MoUs detailing partnerships with international universities. For years 1 (ii), 3 (ii), and 4 (i), SEEID provides details of infrastructure, staff, and operationalization of Procedure training centers, in line with the action/operationalization plan. For years 2 (ii), 4 (ii) and 5 (ii) the target is achieved when SEEID provides details and completion certificates of trainers and assessors provided with market relevant training through the established training centers. The IVA should conduct a sample verification of the training completion. For years 2 (i) and 3 (i), the target is achieved when MSSU provides evidence and course material of the new skilling courses launched post effectiveness of the Program. Page 39 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) For year 5 (i), the target is achieved when MSSU’s annual audited accounts include evidence of income generated through student and accreditation fees. 4 : Increased access to skill development programs for women, SCs and STs by SEEID (Text) Prior Results - NA Year 1 – NA Year 2 - US$5,000,000 per percentage point increase, each, for SCs and STs (up to US$10,000,000) Formula Year 3 - US$5,000,000 per percentage point increase for women (up to US$10,000,000) Year 4 - US$5,000,000 per percentage point increase, each, for SCs and STs (up to US$10,000,000) Year 5 - US$5,000,000 per percentage point increase for women (up to US$10,000,000) This indicator tracks improvements in the percentage of women, SCs and STs accessing skill development Description programs across the State. Data source/ Agency SEEID’ s records/reports/MIS data Verification Entity IVA For Years 2 and 4, the target is achieved when participation of SCs and STs in the long- and short-term skill development programs delivered in the State of Maharashtra has increased by an agreed number of percentage points from the baseline, as documented in the DLI Matrix. Procedure Similarly, for Years 3 and 5, the target is achieved when participation of women in the long- and short-term skill development programs delivered in the State of Maharashtra has increased by an agreed number of percentage points from the baseline, as documented in the DLI Matrix. 5 : Private capital and partnerships mobilized for improved skill development programs in ITIs and women’s entrepreneurshi p by SEEID (Text) Prior Results - US$7,500,000 on achievement Year 1 - US$5,750,000 on achievement Year 2 - US$500,000 for each additional ITI (up to US$5,000,000) Formula Year 3 - US$2,500,000 on achievement Year 4 - US$500,000 for each additional ITI (up to US$5,000,000) Year 5 - US$2,500,000 on achievement This indicator tracks the institutionalization and implementation of a PPP framework for ITIs as well as a Description women’s entrepreneurship index in the State. Data source/ Agency SEEID’ s records/reports/MIS data Verification Entity IVA For Prior Results, SEEID will submit an approved framework for private sector collaboration with ITIs through PPPs. In year 1, the target is achieved when SEEID establishes contracts/MoUs for partnerships with development banks and capital has been transferred into the identified bank accounts to support women’s entrepreneurship. Additionally, a biennial women’s entrepreneurship index with a clear methodology is Procedure approved and a baseline report has been submitted. For Years 2 and 4, the target is achieved when ITIs formally establish PPPs in line with the approved framework for private sector collaboration. Copies of MoUs/ partnership agreements would need to be submitted for verification. For Years 3 and 5, the target is achieved when a bi-annual report documenting progress on scores in the women’s entrepreneurship index has been submitted. 6 : Increased access to entrepreneurship development programs and incubation through SEEID (Text) Prior Results - US$3,000,000 on achievement Formula Year 1 - US$1,500,000 on achievement Page 40 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Year 2 - (i) US$300 per additional trainee (up to US$1,500,000); (ii) US$1,000,000 for each additional incubator (up to US$2,000,000) Year 3 - (i) US$300 per additional trainee (up to US$1,500,000); (ii) US$1,000,000 for each additional incubator (up to US$2,000,000) Year 4 - (i) US$300 per additional trainee (up to US$3,000,000); (ii) US$1,000,000 for each additional incubator (up to US$2,000,000) Year 5 - US$300 per additional trainee (up to US$3,000,000) This indicator tracks development and implementation of an entrepreneurship development module in the State, whether it is offered as an integrated part of another skills development program or offered as a Description stand-alone course. The indicator also supports the review of the State’s start up policy and enables the establishment of incubation centers across different regions of the State. Data source/ Agency SEEID’ s records/reports/MIS data Verification Entity IVA For Prior Results, the target is achieved when the curriculum and TLM for the entrepreneurship development module have been developed and approved by SEEID. For year 1, the target is achieved when a report documenting the review of the start-up policy and associated recommendations has been finalized by SEEID and submitted. Procedure For Years 2 (i), 3 (i), 4 (i), and 5 (i), the target is achieved when an agreed number of trainees have successfully completed the assessment requirements of the entrepreneurship development module. Completion certificates provided by the State should be verified on a sample basis by the IVA. Further, for Years 2 (ii), 3 (ii) and 4 (ii), the target is achieved when there is evidence (through GOs, staff appointments and/or annual financial records) on the operationalization of incubation centers. Page 41 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) ANNEX 2. TECHNICAL ASSESSMENT 1. Strategic Relevance. The Program is in alignment with the government’s expansive skills agenda, the Bank’s global skills development priorities, and the CPF. The GoM’s skilling system is characterized by well-developed institutional arrangements with a clear understanding of responsibilities, an impetus for quality, scale to provide access to training across the State, wide range of social inclusion activities, and experience partnering with a well-developed and open private sector. However, as detailed in sectoral and institutional context sections, some issues remain - poor infrastructure, inadequate trainer quantity and quality, limited impactful engagement in marginalized areas, and lack of coherent and strategic coordination among government departments and with industry. The Program seeks to revamp Maharashtra’s skills system through: (i) strengthened institutions and mechanisms for improved skills policies, qualification frameworks, delivery systems (with infrastructure), and quality assurance mechanisms; (ii) enhanced systemic capacities to design, deliver, evaluate and accredit programs/initiatives that increase access to quality training, especially for women, PwD and disadvantaged sections in the labor force; and (iii) partnerships with industry and employers to increase the market-relevance and quality of skills programs. By aligning the RAs with the government program, DAKSH attempts to leverage the already existing shared understanding of the program amongst various stakeholders to build on the momentum of the government program towards achieving common goals. In aligning itself with the government program as well as the CPF, it is strategically relevant. 2. Technical Robustness. The PforR Program embeds the Bank’s principles for building better TVET systems (based on evidence) in its RAs, specifically: (i) responding to the needs of industry and students (RA1, RA2, RA3 and RA4), (ii) building foundational as well as market-relevant skills (RA2 and RA4), (iii) promoting student mobility within skills development and higher education (RA1), (iv) strengthening accountability and autonomy through quality assurance and information (RA1), and (v) reducing the information gaps of learners, enterprises, TVET providers, communities, and policymakers (RA1). In basing itself on evidence, the design is technically robust. This design will ensure that the government program is scaled based on evidence and with a focus on results, learning, and building institutional capacity. In doing so, it furthers the CPF’s mandate for improved service delivery through State partnerships and decentralized management for accountability and institutional capacity building at district and sub-district levels. 3. Capacity of Institutions. While the institutional arrangement lends well to implementing the DAKSH Program, service delivery and M&E capabilities will need to be strengthened through the Program. SEEID is being envisaged as the nodal agency in-charge of coordinating the Program, with its sub-units acting as Program IAs. The IAs have had decades of experience in independently managing skills development, employment, innovation, and entrepreneurship training programs for both the State and the central governments and have well-developed delivery and monitoring units at the state, district, and block levels. This lends confidence in their ability to act as IAs for the PforR Program under the coordination framework provided by SEEID. Additionally, given the experience of these agencies, they have some monitoring capabilities. However, there is ample scope to improve institutional capability to undertake needs-based and agile planning and management, coordination amongst agencies, and integrated and holistic M&E functions. The Program aims to achieve this using the PforR instrument and dedicated focus on planning, capacity building, and LMIS under RA1. Page 42 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) ANNEX 3. FIDUCIARY SYSTEMS ASSESSMENT 1. The fiduciary risk is rated as ‘Substantial’. The conclusion of the IFSA of key IAs is that the Program’s fiduciary systems, subject to timely implementation of proposed mitigation measures, will provide reasonable assurance that financing proceeds shall be used for intended purposes, with due attention to the principles of economy, efficiency, effectiveness, transparency, and accountability. The IFSA followed the World Bank’s Policy for PforR and the related directive. IFSA has identified key fiduciary risks that may affect the Program’s development outcomes, and recommended systems improvement and capacity-strengthening/risk mitigation measures that will be implemented during the life of the Program. Given the complex engagement of activities involving multiple agencies with varied capacity, there is an inherent risk associated with compliance to agreed FM arrangements. Various action items are recommended to be completed during Program implementation to strengthen the existing systems of the IAs and to mitigate the fiduciary risks. 2. IFSA scope. The IFSA was conducted through questionnaires, in person and online meetings and discussions with the officials of the IAs, review of fiduciary processes, performance data and the list of contracts awarded during the last two years, desk review of certain online data/information and the Bank’s experience in other projects at the State level. The IFSA focused on the FM and procurement systems, regulatory aspects, governance and anti-corruption systems and operational practices of the key IAs. 3. Program Expenditure Framework. The outlay of the selected schemes (EAP-DAKSH and 22306127) included within the boundary for the Program is estimated at US$278 million, of which IBRD financing is US$195 million. The procurement profile envisaged under DAKSH proposes to include civil works for establishing model ITI and data center, construction of incubation centers, model career center and innovation gallery in WSC, repair of existing buildings, construction of new buildings within the existing campus; goods, such as, machines, hand tools, and measuring equipment for ITIs upgradation; ICT procurement; and consultancy. Table 3.1: Overall Program Activity and Expenditure Plan (OWP) – Estimates by Agency INR Crores USD Million Grants, S.No. Agency Civil Works Goods Services Total Total Scholarships 1 DVET 952 551 50 - 1,554 187 2 MSSU 270 19 1 - 291 35 3 CSDEE - 3 5 - 8 1 4 MSInS - - 77 1 78 9 5 MSBSVET 10 30 22 - 62 7 6 MSSDS 250 - 64 - 314 38 7 PWD - - - - - - 8 SEEID - - - - - - Total 1,483 603 220 1 2,307 278 4. Planning and Budgeting. SEEID shall open a new budget line for the Program (EAP-DAKSH) and receive annual budgetary allocation under the budget line. Until that happens, SEEID has made budgetary allocations for DAKSH under budget/scheme code 22306127. These budget lines shall make up the expenditure framework (P). While an overall Program cost, bifurcated by agency, activities, and category of expenditure, has been compiled, this shall be sharpened Page 43 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) through the first year of implementation. SEEID will put together an AWP after receiving inputs from each agency and request for a budgetary provision against such AWP following the extant budgeting calendar, procedures, and systems of GoM. The AWP shall be submitted to the Bank by April 15 of the relevant FY, approved by the Steering Committee as and when it meets and shall serve as the basis for monitoring progress. 5. Treasury and Fund Flows. SEEID shall allow each of its agencies to access funds allocated under the EAP-DAKSH budget head through BEAMS. The extent to which these funds are allocated to each agency shall be determined via an internal circular issued by the Department whence fresh budgetary allocations are made and shall align with the AWP. SEEID, DVET, MSSU, MSBSVET, CSDEE and PWD shall exercise their respective Drawing and Disbursing Officer’s (DDO) powers to execute payments. The CSDEE shall continue to serve as the DDO for MSInS and MSSDS. The Program shall rely on Maharashtra’s Treasury Rules, the respective Acts of MSSU and MSBSVET, the Financial Rules of MSSDS and MSInS and the Delegation of Financial Powers of respective agencies for governance of the treasury function and payments. 6. Accounting and Financial Reporting. SEEID shall be responsible for the compilation of annual Program accounts and reporting of Program expenditures on a half-yearly basis. At the agency level, the Program shall rely on the extant practices, procedures, and systems for accounting and financial reporting of each agency. Separate Program accounts will be maintained in e-form by each agency on cash basis in addition to entity accounts. DAKSH will support capacitating the accounting function and strengthening of systems via measures like upgrading to Tally Prime that enables the generation of an audit trail, development of internal process manuals, hiring of experienced accounting staff, developing a chart of accounts for the Program, maintaining accounts by activity, RA, economic function, institution and so on. Appropriate templates shall be developed for management reporting and to support the financial reporting requirements of the Program. 7. Internal controls and internal audit. The Program shall rely on the internal controls instituted by the management of each agency. While the systems of DVET, CSDEE, SEEID and PWD are well-established, those of MSSU, MSBSVET, MSSDS and MSInS need to be strengthened. Simple interventions like adoption of the Statutes of MSSU, preparation and adoption of the Rules and Regulations of the MSBVET, adoption of the Finance Rules of MSInS, and re-visiting the AFR of MSSDS will go a long way in enhancing fiduciary assurance. SEEID will anchor a semi-annual internal audit for the Program, conducted by an independent auditor, under a ToR to be agreed on with the Bank. The ToR will cover procurement, CM, FM, and governance aspects. Internal audit reports will be shared with the Bank as per PAP. The Bank may also request entity internal audit reports of SEEID and its agencies. 8. Assurance. The C&AG shall conduct the Program external audit of DAKSH annually. SEEID shall anchor the exercise and submit the annual audit report and accounts of the Program to the Bank within 9 months from the close of each FY. The request to C&AG for annual Program audit will be sent by Department of Economic Affairs (DEA), Ministry of Finance, GoI post negotiations. The Bank may request entity external audit reports of Program IAs. The Program audit report and accounts shall become public upon acceptance by the Bank. 9. Disbursement. DAKSH will disburse against DLIs. Table 3.2: Disbursement Categories Description Amount (US$ million) DLI 1: Integrated decentralized Skills Data Center for real-time monitoring of skill development (Text) 29.25 DLI 2: Improved apprenticeships and performance of ITIs though DVET strengthening (Text) 39.00 DLI 3: Enhanced institutional architecture of MSSU for market-relevant skilling and of SEEID for training 38.51 of trainers and assessors (Text) Page 44 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) DLI 4: Increased access to skill development programs for women, SCs and STs by SEEID (Text) 40.00 DLI 5: Private capital and partnerships mobilized for improved skill development programs in ITIs and 28.25 women’s entrepreneurship by SEEID (Text) DLI 6: Increased access to entrepreneurship development programs and incubation through SEEID (Text) 19.50 Sum of DLIs 194.51 Front-End Fee .49 Total Loan 195.00 10. For DLI claims, SEEID shall prepare the claim, attach the IVA’s report to it and send it to the Bank for approval, before submitting the whole package to Controller of Aid Accounts and Audit, DEA. 11. Staffing. Staffing the accounting, financial reporting and internal audit functions at respective agencies is necessitated, over and above staffing the PMC in SEEID. A few positions for Chartered Accountants, accountants, and finance professionals with experience in the construction industry, specifically in contracting and CM, will need to be created across all agencies except the MSBSVET and positions for FM staff in MSSU, MSSDS, MSInS and CSDEE will need to be filled. Ongoing needs assessments of the adequacy and performance of FM staff will be undertaken. 12. Public Procurement Framework. The General Financial Rules, developed by the Ministry of Finance, GoI, as updated from time to time establishes the principles for government procurement at the GoI level. The applicable procurement method depends on the value of contracts to be awarded and other factors as stipulated in the Rules. GoM has a procurement framework which all IAs follow except the Societies. Revised manuals of office procedures for procurement of goods by the government departments became applicable to the State with effect from 01/12/2016 which shall be the basis for all procurement by all IAs. The existing governance and accountability arrangements include audits by the C&AG of India, review of audit reports by Public Accounts Committee, Right to Information Act 2005, and the Central Vigilance Act 2003. The State departments and government agencies have a clearly defined delegation of authority. Parastatals also have clear delegation of powers, financial rules and regulations which are followed, and audited by C&AG empaneled auditors. 13. Public Procurement Systems. While there is no requirement for the preparation of annual procurement plan and its disclosure on the official website, there is a linkage between the budget cycle and procurement cycle as all government departments prepare budgets for each FY. Once the budget is approved, the procurement process is initiated after obtaining necessary administrative and technical sanctions from the competent authorities. The GoM has mandated the use of an e-procurement system for bidding of procurement contracts with an estimated value of US$3,600 (INR3 lakhs) for goods and services and US$12,000 (INR10 lakhs) for works and above through the website, mahatenders.gov.in. GeM is extensively used for goods and services available on without any restriction in terms of thresholds. Although the Societies (MSInS and MSSDS) have their own AFR, these are largely guided by and are in-line with GoM procurement Rules and Regulations, MSSU follows the Maharashtra State Skills University Act 2021, its Finance, Accounts, Audit (Accounts Code), 2023 and GR of 01/12/2016 for the procurement procedures. The State does not have a universal suite of procurement documents/templates for goods, works and services. The bid documents are customized by the IAs as per their requirement. The State also needs to have a mechanism for collating procurement and contract information for which procurement MIS needs to be put in place as that helps in close monitoring, timely corrective action and carrying out reviews. Even though the State has a mechanism for handling complaints related to fraud and corruption, there is a need for a dedicated mechanism to be put in place to treat procurement-related complaints, including an independent appeals body to improve transparency and confidence in the bidding community. Page 45 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Table 3.3: Snapshot of Procurement Arrangements of Key Procurement Agencies Particulars MSSU DVET MSInS MSBSVET CSDEE MSSDS PWD SEEID Procureme As per State As per AFR The State State As per AFR State State nt Rules MSSU Government of MSInS procurem Governm of MSSDS Governme Governme Finance, Department, and are ent rules ent and are nt nt Accounts, and relevant largely in- (as for Departm largely in- Departme Departme Audit GoM rules line with DVET) ent. The line with nt, and nt. The (Accounts apply. Goods & GoM State GoM relevant State Code), Services - GR procuremen procure procuremen GoM PWD procurem 2023 and dated t Rules and ment t Rules and rules ent rules Statutes 01.12.2016. Regulations rules (as Regulations apply. (as for drafted as GeM provisions for DVET) GR of DVET) per the for items PWD State procured on dated procureme GeM portal. 27/09/20 nt rules12 Works procured 18. through PWD. Procureme Finance & A Procurement Administrati Committe Committ As per the Main Procurem nt Accounts Section of 2 ve team e ee AFR. Office work of ent arrangeme Officer officers and 6 handles constitute formed Registrar PWD is handled nt and handles staff under procuremen d under as per oversees execution through staffing procureme supervision of t and Secretary dept Administrati of all Registry nt. The Dy Director. includes of GR.dt. on, types of Office, entire Manager MSBSVET. 11.02.20 Establishme works. only very procureme Admin cum Experts 22. nt & The whole few nt process Registrar. taken Procure Procuremen departme procurem of the No separate from ment t Cell, and is nt is ents in a University staff for Governme through supported organised year is routed procuremen nt ITIs GeM by two staff. for through t Portal. planning the and Procureme execution nt of works Committee for the or the State Buildings and Works Committee . Procureme System/pro Complaints can Complaint Complaint Complain Complaints Tender Complaint nt cess of be made handling is s can be ts are are handled document s can be Complaints procureme through email the made resolved by s contain made and nt or in physical responsibilit through through concerned these through Procureme complaint form to DVET; y of email or in Purchase officers of provisions email or in nt audit handling – on GeM and Manager physical committ the Society. . In physical arrangeme shall be as Mahatenders Admin cum form to ee. Complaints addition form to nts per Registrar. the Complain can be made to DVET; on 12 The MSSU Accounts Code 2023 specifies that the University shall follow the procedure prescribed in GoM GR of 01.12.2016. Page 46 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) regulations portals; and to Complaints MSBSVET; ts can be to the complaint GeM and of GoM. CM. can be on GeM made Society or s to Chief Mahatend Audit by Audit by C&AG. made to and through Mantralaya; Engineers, ers C&AG MSSU; on Mahatend email or on GeM and these can portals; empanelle GeM and ers in Mahatender also be and to d Mahatende portals; physical s portals; made to CM. Nil Chartered rs portals; and to form to and to CM. Mantralay Complaint Accountant and to CM. CM. CSDEE; Audit by a, on s. . Audit by Audit by on GeM Chartered Mahatend Audit by C&AG C&AG and Accounting ers portal; C&AG. empanelled empanelle Mahaten Firm and to Chartered d ders CM. Audit Accountant Chartered portals; by C&AG Accounta and to nt. CM. Audit by Accounta nt General, GoI e- GeM Portal GeM Portal & GeM Portal GeM GeM GeM Portal https://m GeM procureme for items mahatenders.go & Portal & Portal & & ahatender Portal & nt available v.in mahatender mahatend mahaten https://mah s.gov.in mahatend on GeM s.gov.in ers.gov.in ders.gov. atenders.go GeM ers.gov.in and in v.in portal is https://ma used only hatenders. for items gov.in of office consumpti on and not for procurem ent of works. 14. Procurement arrangements. The State of Maharashtra has procurement rules, and each agency has clearly defined delegation of authorities. GeM portal of the central government is used by all implementing entities except PWD, and they all broadly follow the established procurement framework of GoM. All IAs will ensure that procurement is done at centralized level through respective project implementation units per the AWP shared with Bank; appropriate staffing shall be put in place including assigning 1-2 officers as nodal procurement officers for DAKSH; procurement shall be carried out as per country systems and shall comply with specific arrangements as detailed in the Program Fiduciary Manual; internal audit which is essentially a detailed fiduciary review shall be as per ToR agreed with the Bank; information in regard to bidding as per AWP and contracts performance shall be captured in the MIS data including any complaints and action taken for each of them shall be promptly shared with Bank; all the bidding opportunity and contract awards shall be disclosed on the IA /Program website. Given the mandatory applicability of the Bank ACG, no contracts shall be awarded to debarred /suspended firm. Page 47 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) 15. While all agencies will procure goods and services under DAKSH, civil works will be carried out mainly by PWD and MSSU. All the IAs under the Program will use the country systems for public FM and procurement under the PforR Program subject to meeting the compliance requirement of the World Bank for PforR operations. 16. Capacity Building and Staffing. Sizable procurement is currently handled by just two IAs (DVET and PWD) and all other IAs (MSSU, MSInS, MSBEVET, CSDEE, MSSDS and SEEID) handle only few procurements with low volume that includes procurements on the GeM. Under DAKSH, there will be a substantial increase in the annual procurement volume in all IAs except PWD. Identified staffing enhancement and capacity building will be essential for each IA. 17. Program Procurement Profile. The Program is likely to procure a variety of goods, works, consultancy and other services. However, it is not allowed to procure any high value contracts as per the OPRC thresholds mentioned earlier. In addition, the World Bank team will analyze and monitor the Program performance of fiduciary systems and CM reports to identify any large‐value contracts that may appear during Program implementation. Table 3.4: Mapping of Expenditure, Activities and Financial Estimates Component Classification of Expenditures and Activities Financial Estimates (In US$ million) PforR (1 – 6) (1) Civil Works 178.34 (2) Goods, material, and supplies 58.61 (3) Procurement, installation, and maintenance of Information Technology (IT) hardware 14.00 and software (4) Consultancies, professional services, and contractual staff 18.73 (5) Training 07.70 (6) Grants and Scholarships 0.14 Front-end Fee 0.49 Total (PforR + Front-end Fee) 278.00 18. Governance and Anti-Corruption Measures: The PforR Program will be subject to the World Bank ‘Guidelines on Preventing and Combating Fraud and Corruption in Program-for-Results Financing’ dated February 1, 2012, revised July 10, 2015 (the ACG). These guidelines shall be applied in an unrestricted manner on all activities within the ‘Program boundary’. Requirements under these guidelines include but are not limited to (i) borrower’s obligation on informing the World Bank about all fraud- and corruption-related allegations and investigations; (ii) the World Bank’s right to conduct administrative enquiries; and (iii) ineligibility of debarred firms for contract awards. To operationalize implementation of the various areas covered in the ACGs, it has been agreed that the PMU shall: a. Compile and maintain a six-monthly report on all fraud- and corruption-related allegations and investigations that are related to the Program and share it with the Bank in the prescribed format. b. Compile and maintain a quarterly report of complaints that may be reported that are related to the Program and share it with the Bank (based on the agreed format to be incorporated in the Fiduciary Manual). c. Confirm on six-monthly basis that none of the contract awards under the Program are made to any of the ineligible or World Bank debarred firm. Page 48 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) d. Each of the procurement entity shall: i. Ensure incorporation of the Bank’s debarment list in the filter used by implementing entities when they conduct due diligence. This list may be found on the following website: https://www.worldbank.org/en/projects-operations/procurement/debarred-firms. ii. For every bidding opportunity under the Program, each participating bidder shall be required to submit (as part of their bid) a self-declaration that the firm is not subject to debarment or has not been sanctioned under the World Bank system of debarment and cross-debarment. iii. It is recommended that scope of Auditor includes validating that, under Program Expenditure Framework, no contract is awarded to World Bank debarred firms. iv. Ensure that fraud and corruption risk prevention measures are implemented throughout the Program, as agreed in the PAP, and IAs will take timely and appropriate action to address issues. v. Review and certify the above aspects at serial numbers i. through iv. to the Bank semi-annually, through a third-party procurement audit or Program audit (as appropriate), carried out by qualified auditors under ToRs acceptable to the Bank, and report the same to the Bank in a format agreed with the Bank. 19. To operationalize implementation of the various areas covered in the ACGs, the IAs shall monitor procurement Key Performance Indicators (KPIs) on economy, efficiency and transparency listed below. i. Procurement process cycle time (i.e., time taken from advertisement to contract signing). ii. Disclosure of contract award on the respective websites of the IAs within 14 days of the award of the contract. iii. Procurement-related complaints lodged, resolved, and reported (percent resolved). iv. Bidders’ participation (i. e. average number of bidders submitting a bid in each bid process) v. Time and cost overrun for tenders/contracts. 20. Risks and Proposed Mitigation Measures. The IFSA identified areas of improvement across FM and procurement functions. The Program will support institutional assessments, process and systems’ enhancements and capacity augmentation of all IAs with the aim of strengthening fiduciary system for all the IAs. Please refer to the IFSA for detailed Fiduciary assessments, risks, and mitigation measures. The key risks and proposed PAP actions are included in the PAP table. In addition, there are below risks which will be addressed during implementation and will be amplified in the Fiduciary Manual: i. Multiple GOs and circulars related to procurement and non-availability of SBDs may create inconsistency and ambiguity in procurement transactions so the Fiduciary Manual shall clearly articulate applicable Bid documents, procurement processes, and procedures for goods, works and services, ii. To address Issues related to procurement performance the procurement MIS data shall be reviewed and corrective actions put in place in a timely manner. All IAs to provide information which will enable monitoring procurement performance and the KPIs as detailed in the Fiduciary Manual. Page 49 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) ANNEX 4. ENVIRONMENTAL AND SOCIAL SYSTEMS ASSESSMENT 1. Objectives and scope. The ESSA examined the (i) E&S effects, including indirect and cumulative effects of activities associated with the Program; (ii) compared borrower’s systems against the core principles – laws, policies, and managing identified E&S effects to identify any significant differences that could affect Program performance; and (iii) recommended measures to managing the Program E&S risks. 2. Methodology. It included: (i) secondary literature review, (ii) screening, (iii) site visits, (iv) consultations, (v) analysis and synthesis of strengths of the E&S systems and areas for improvement. State level workshop was conducted on November 23, 2023, and the draft ESSA was disclosed on the SEEID, GoM and Bank’s website on 17 November 2023. 3. E&S Assessment. National and state level policies, regulatory provisions and legal frameworks are in place to manage E&S risks that promotes environmental and ecological protection, resource conservation and efficiency, resilience, and pollution prevention/management, including social inclusion and participation, transparency and accountability, land management, employee/labor welfare and facets of health and hygiene. All IAs have either conducted specialized trainings, or provided monetary incentives (concessions, scholarships, reimbursements, etc.) to ensure inclusion of vulnerable groups. However, SEEID lacks expertise to manage E&S risks, gaps exist in grievance mechanism across IAs, outreach program is weak particularly in remote and geographically isolated areas, specifically on long-term and short- term trainings and entrepreneurship programs by institutions (ITI, MSSDS, MSSU). Except for MSSU, other IAs have setup Internal Complaints Committee to address sexual harassment at the workplace. Limited awareness building, and trainings have been conducted so far. Disbursement of salaries, access to basic amenities (including clean/hygienic sanitation) and employee safety remains a challenge, particularly in ITIs. PWD doesn’t have a dedicated mechanism to monitor the standard contract documents that mandates contractors to conform with environment, safety, and labor laws/regulations. 4. Assessment Against Core Principles. (Core Principle #1): E&S management systems, staff capacity, grievance redressal, Information, Education and Communication (IEC) activities and feedback mechanism, curriculums, and policies need to be augmented. (Core Principle #2): No adverse impact or risks for natural habitats and physical cultural resources. (Core Principle #3): PWD and IAs to ensure adherence to labor and employment laws and regulations. (Core Principle #4): No Land acquisition. (Core Principle #5): IAs mandated to ensure equity and inclusion of disadvantaged groups through implementation of special provisions, policies, and schemes. (Core Principle #6): Not relevant. The gaps identified in the assessments are addressed through the ESSA recommendations. The assessment confirmed overall adequacy and consistency with these core principles. Recommendations and PAP 5. Program Exclusion: Exclusion criterion to screen high risk investments to be excluded from the Bank Program are: (a) significant loss of assets/ livelihoods/, impact on indigenous people and vulnerable, cultural heritage, forced eviction, permanent restrictions on access to resources; and (b) significant adverse impacts and/or falling within critical habitat, including designated protected areas. All such activities remain excluded from the Bank financed Program. 6. PAP: Environment - (i) Establish functional and effective Environmental Management Systems in ITIs; (ii) Model ITIs to imbibe Green Building/ Infrastructure Norms /standards; (iii) Integrate EHS/OHS aspects (as relevant to the trade) in the Curriculum. Social – (i) Strengthen institutional capacities and reporting on social risk management: (a) skilled social staff designated for Program; (b) training to manage social risks implemented; (c) social screening of infrastructure facilities and developing SMP for implementation; (d) monitoring and reporting systems to track social outputs and outcomes are Page 50 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) adopted; (ii) Establish systems for conducting and acting on beneficiaries’ feedback – baseline, mid-term, and end – term; and (iii) Employee Welfare and Working Conditions audited annually. 7. Recommendation on key residual E&S risks detailed are: (i) introduce/develop new courses on Green Skills/Jobs; (ii) Vulnerability Assessment to disasters; (iii) screening/scoping; (iv) create Environmental Report Card on health, safety, etc. (v) waste management system; (vi) strengthen menstrual hygiene management; (vii) consult stakeholders for curriculum development; (viii) undertake annual statutory compliance audit of employee regulations; (ix) IEC strategy for outreach in remote and geographically isolated areas; (x) Special provisions PwDs and tribals to access Program benefits; and (xi) training curriculum to address diversity equity and inclusion at workplace. 8. Implementation Support: The support by the World Bank will: (i) Review E&S implementation progress; (ii) Assist the IAs to set up systems and procedures to identify, manage and monitor E&S risks/impacts; (iii) Support capacity building on E&S management; (iv) Monitor the performance of the PAP; and (v) Monitor changes in Program E&S risks. Page 51 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) ANNEX 5. PROGRAM ACTION PLAN @#&OPS~Doctype~OPS^dynamics@padpfrannexprogramactionplan#doctemplate Action DLI Responsibilit Description Source # y Timing Completion Measurement All the Fiduciary NA All IAs Recurre Continuous Bi-annual report to be shared contract Systems nt with World Bank by SEEID awards under the DAKSH Program are duly published on the PMU website/ respective websites of the IAs An Fiduciary NA SEEID Other Recurrent; Internal auditor to be independent Systems Within 9 appointed as per ToR agreed internal months of with Bank. The bi-annual auditor to be effectiveness reports of internal audit shall appointed to and then be shared with Bank by carry out every six February 15 and August 15 of fiduciary months till each program year. review as per project ToR to be closure agreed with the World Bank Compliance Fiduciary NA All IAs Other By Bi-annual report to be shared with protocol Systems Negotiation; with World Bank by SEEID of ACG of the Recurrent Bank Develop and Environmen NA SEEID, DVET, Other Within 9 • Social specialists in adopt tal and MSSDS months of PMU, PMC and the IAs systems and Social MSBSVET, effectiveness; procedures Systems CSDEE, MSInS Yearly • SOPs adopted for to identify, social screening and manage and developing SMP monitor for civil works Page 52 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) social risks • Monitoring and and impacts reporting systems to track social outputs and outcomes adopted • Training to manage social risks implemented Each IA to Fiduciary NA All IAs Other Within 1 Reporting of positions strengthen Systems month of sanctioned, filled and vacant their effectiveness in bi-annual status report, fiduciary and to be together with details of staff staffing by maintained holding those positions. nominating during entire or hiring project life appropriate number of fiduciary staff and ensure appropriate training and capacity building Employee Environmen NA All IAs Other Within 1 year • Assess and update Welfare and tal and of the HR policy and Working Social effectiveness; adopted. Conditions Systems Yearly audited • Systems established for monitoring and reporting on compliance with employee/labor laws and policies. Establish Environmen NA SEEID, DVET, Other Starting • Trained/qualified staff functional tal and MSSDS and within 6 in place and effective Social ITIs months from Environment Systems effectiveness, • Green building norms al and continue applied for existing Management through the buildings Page 53 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) Systems in implementati • All ITIs to have fire ITIs on period safety, emergency response, sanitation, and waste management arrangements Establish Environmen NA All IAs Other Baseline (Year • Systems for systems for tal and 2), Mid-term, beneficiary feedback conducting Social and End- established and and acting on Systems term; Within operational. beneficiaries’ 1 Year feedback • Course correction to increase enrollment rate of women, SCs, STs, and persons with disabilities. • GRM guideline developed for IAs. Integrate Environmen NA SEEID,MSBSV Other Starting with • EHS/OHS EHS/OHS tal and ET and 6 priority requirements aspects (as Social MSSDS (with higher integrated in the relevant to Systems risks) courses curriculum for both the trade) in within 6 teachers and the months from students. Curriculum effectiveness, • Trainings conducted. and roll-out through the • Sensitization on EHS implementati introduced in the on period Induction Program • Roll-out of the revised curriculum in the concerned course/institutions Model ITIs to Environmen NA SEEID,MSSDS Other In line with • Compliance to imbibe Green tal and and DVET Planning, applicable Building/ Social Design and environmental regula Infrastructur Systems Construction tions and rules Cycle Page 54 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) e Norms • Green building rating /standards attained. • Infrastructure/asset maintenance systems demonstrated and sustained Procurement Fiduciary NA SEEID Other Within 18 Confirmation upon and CM MIS Systems months of development and use of MIS including a effectiveness system followed by bi-annual robust followed by update status report complaint bi-annual handling report system be developed, established, and operationaliz ed Respective Fiduciary NA (i) MSSU, Other (i) On or Receipt by World Bank Task Governing Systems MSInS; (ii) before Team of the Minutes of the Councils to MSBSVET, effectiveness; Governing Council evidencing adopt the (i) MSSDS (ii) Within 6 the adoption of Statutes and Statutes of months of AFR with a final copy of the MSSU and effectiveness adopted Statutes and Rules. Finance Rules of MSInS; (ii) Rules and Regulations of the MSBSVET, and Revised AFR of MSSDS SEEID to Fiduciary NA SEEID Other Within 6 To be agreed with World Bank develop and Systems months of and operationalizing its use adopt a effectiveness Fiduciary Manual that describes applicable Page 55 of 56 The World Bank Development of Applied Knowledge and Skills for Human Development in Maharashtra- (DAKSH) Maharashtra (P177965) fiduciary arrangement s Submission Fiduciary NA SEEID Recurre Yearly Receipt by World Bank Task of an AWP to Systems nt Team of AWP by April 15 of the World each FY Bank Page 56 of 56