The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) Skills Strengthening for Industrial Value Enhancement Operation (P156867) SOUTH ASIA | India | Education Global Practice | Requesting Unit: SACIN | Responsible Unit: HSAED IBRD/IDA | Program-for-Results Financing | FY 2017 | Team Leader(s): Kumar Vivek, Shiro Nakata Seq No: 8 | ARCHIVED on 13-Nov-2020 | ISR43584 | Created by: Kumar Vivek on 22-Sep-2020 | Modified by: Kumar Vivek on 11-Nov-2020 Program Development Objectives Program Development Objective (from Program Appraisal Document) To improve access to quality and market-driven vocational training provided in ITIs and apprenticeships Overall Ratings Name Previous Rating Current Rating Progress towards achievement of PDO Moderately Unsatisfactory Moderately Unsatisfactory Overall Implementation Progress (IP) Moderately Unsatisfactory Moderately Unsatisfactory           Implementation Status and Key Decisions 1. Implementation progress has slightly improved, though the project remains behind schedule. The challenging task of onboarding state governments, beneficiary ITIs, and ICs through performance-based agreements is largely complete, setting up the much-needed delivery structures to make further progress. The project has also completed the hiring of an Independent Verification Agency (IVA) for verification of achievement of Disbursement Linked Indicators (DLIs). Five out of six FY 2019-20 DLIs have been either wholly or partially achieved and are pending verification by the IVA, resulting in a likely disbursement of US$ 27 million in the current FY. Additionally, several action items agreed during the previous mission have been completed despite the limited functioning of the Ministry and institutions due to the pandemic, thereby marking an improvement in implementation progress. A restructuring of the project completed in June 2020 has also helped in setting realistic targets and adjusting the project’s scope in response to policy changes, initial delays, and some of the operational challenges caused by the COVID-19 pandemic. 2. A Virtual Tripartite Portfolio Review Meeting was also taken by the DEA on Sep 24, 2020 where it was agreed that the operation will not be granted any extension of the closing date. Considering that only two years are left before closing of the operation, it was agreed that the DGT will identify estimated cost savings that may allow a realistic project size for achieving the development objectives, while ensuring full utilization of IDA funds. This will likely require another restructuring of the operation for cancellation of the funds. 3. The mission also noted the renewed strategic vision shared by the DGT and the broader context in which STRIVE implementation would play a role. The DGT expects to leverage the project to enhance DGT’s policies and capacity in development of sustainable systems and processes. The Directorate has aligned its strategies on sustainable development with key result areas of STRIVE such as CITS and CTS training in a blended mode. Further, the DGT is planning a new initiative (called “Project Dakshita”) for revamping ITI ecosystem through integration of ITIs and school education and higher education. The plan, building on the learning from STRIVE, will increase training capacity and expand the coverage of the ITI ecosystem by ensuring each administrative Block has an ITI and each district has a ‘model’ ITI. It will also focus on improving female participation, and making skilling aspirational. 4. Unforeseen system-level and policy changes, operational challenges, and the economic shock caused by the COVID-19 pandemic were among the main reasons which caused the inordinate delay in project implementation during the first 2 years of implementation. A project restructuring has been completed to mitigate these challenges. 11/13/2020 Page 1 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) Data on Financial Performance Disbursements (by loan) Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed % Disbursed P156867 IDA-59650 Effective USD 125.00 125.00 0.00 31.36 93.64 25% Key Dates (by loan) Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date P156867 IDA-59650 Effective 02-Mar-2017 19-Dec-2017 08-Feb-2018 30-Nov-2022 30-Nov-2022 DLI Disbursement Achievement Disbursed amount in Disbursement % for DLI ID DLI Type Description Coc DLI Amount Status Coc DLI Loan: IDA59650-001 DLI1 Increase in no of 1(a) Regular USD 18,000,000.00 Not Achieved 0.00 Graduates DLI2 Impr in Indus 1(b) Regular USD 21,000,000.00 Not Achieved 0.00 Training and Emplmt DLI3 Reduc in ITI Trainer 1(c) Regular USD 20,500,000.00 Not Achieved 0.00 Vac and Trng DLI4 No of States cond 1(d) Regular USD 18,000,000.00 Not Achieved 0.00 Tracer Stud DLI5 No of ICs intr Partially 1(e) Regular USD 22,500,000.00 1,500,000.00 6.7 % Apprnshp Prog Achieved 1(f) Regular DLI6 Inc in Fem Enrlmnt USD 19,000,000.00 Not Achieved 0.00 EEP 2 Regular Gds,NCS,CS,Trng,Wkshp, USD 6,000,000.00 Fully Achieved 1,360,322.80 23 % IOC Program Action Plan Action Description PMC in place Source DLI# Responsibility Timing Timing Value Status Client Due Date 08-Feb-2019 Completed Completion Measurement Comments 11/13/2020 Page 2 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) OM, including ITI PB Grant Agreement Scheme Guidelines, State Performance-Based Funding Scheme Guidelines, Action Description and IAI Grant Mechanism Guidelines, completed Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Apr-2018 Completed Completion Measurement Operations Manual approved by the National Steering Committee (NSC) on 3rd January 2019. Comments Action Description Functional procurement complaint handling and redressal mechanism Source DLI# Responsibility Timing Timing Value Status Other Client Due Date 08-Feb-2019 Completed The client is using the already existing public grievance redressal system for this project. Moreover the central Completion Measurement Ministry has requested each State/ UT to identify and assign a focal person for handling grievance redressal. Comments Action Description First 18 months Procurement Plan updated and submitted to Bank Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 21-Nov-2017 Completed Procurement plan for first 18 months is uploaded on the project website and was also submitted to the World Bank Completion Measurement task team. Comments Action Description Inclusion. All ISPs to include a plan for inclusion of vulnerable groups Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 01-Aug-2018 Completed Completion Measurement ISPs have been received and contain an inclusion plan. Comments Gender. Study to understand the demand- and supply-side constraints for women to enter skills training and Action Description subsequently transition into the labor market Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 08-Feb-2019 Completed 11/13/2020 Page 3 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) Completion Measurement The study has been completed. Comments MIS. Develop a system to disaggregate data pertaining to SCs, STs, OBCs, women, minorities, and persons with Action Description disabilities as part of tracer studies for ITI graduates to be implemented by states under the Program Source DLI# Responsibility Timing Timing Value Status Technical Client Recurrent Yearly In Progress The ministry's MIS system was modified to include dis aggregation related to SCs, STs, OBCs, women, minorities, Completion Measurement and persons with disabilities. The NIPU is also in the process of developing a model ToR for Tracer Studies to be conducted by states. Comments Action Description Robust environmental management system developed and functioning in ITIs Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Not Yet Due Completion Measurement Comments Action Description Students aware of and practice good safety norms in ITI Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Not Yet Due Completion Measurement Comments Action Description Apprenticeship enforce good OHS and waste management standards Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous Not Yet Due Completion Measurement Comments 11/13/2020 Page 4 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) Action Description Disclosure of approved Procurement Plans on project website Source DLI# Responsibility Timing Timing Value Status Client Recurrent Continuous In Progress Completion Measurement Comments Action Description Initiate procurement for Independent Verification Firm Source DLI# Responsibility Timing Timing Value Status Technical Client Due Date 30-Nov-2017 Completed The EoI and RFP process is complete, and the responses to the RFP have also been evaluated. However, the Completion Measurement recommendation to award the contract is pending clearance from the Election Commission. Comments Risks Systematic Operations Risk-rating Tool Risk Category Rating at Approval Previous Rating Current Rating Political and Governance Low Low Low Macroeconomic Low Substantial Substantial Sector Strategies and Policies Moderate Moderate Moderate Technical Design of Project or Program Moderate Moderate Moderate Institutional Capacity for Implementation and Substantial Moderate Moderate Sustainability Fiduciary Substantial Substantial Substantial Environment and Social Moderate Moderate Moderate Stakeholders Substantial Moderate Moderate Other Substantial -- Moderate Overall Moderate Moderate Moderate RiskComments Comments COVID Risk ('Other' risk) Mitigation Measures:  Results Area 1: The MSDE is unable to anticipate the impact of COVID on ITI admission and pass-out rates and data to support the impact will only be available once enrolments for the new session are completed (currently ongoing) and examinations for the current session are conducted (expected Mid-Nov 2020). Mitigation measures are planned to be discussed with the client when the quantum of the issue is reazlied by the end of the current year. 11/13/2020 Page 5 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867)  Results Area 2: Sate capacities are impacted as most state governments, many already constrained with capacity issues, are functioning with limited staff. In order to mitigate this risk, the NPIU plans on augmenting State capacities.  Results Area 3: Development of 4 CITS trades in a blended mode is impacted due to limited staff functioning, and the NPIU is now planning on outsourcing the development of 4 CITS trades to a third party agency.  Results Area 4: Implementation of the Industry Apprenticeship Initiative (IAI) grant mechanism is impacted as industry focus appears to be temporarily shifted to resumption of business after the extended lockdown. The NPIU is working with ICs to provide ad-hoc capacity support as and when needed by Industry Clusters so as to minimise the delay in starting trades under the IAI grant mechanism. FM Risk mitigation Measures  Submission of audit reports for FY2018-19 and FY2019-20 by Dec 31, 2020, including reporting on Procurement audit  Appointment of Finance Specialist by Oct 31, 2020  Preparation of a detailed report on status of funds flow arrangements across all 36 participating states with each stage clearly enunciated, stage and reason for roadblocks and possible solutions being deliberated by the State by Nov 15, 2020  Knowledge sharing session among all participating states to deliberate on funds flow arrangements in Dec 2020  Institutionalizing audit arrangements / availing of Internal and External Audit reports of ITIs/ICs/SPIU by NPIU, specifically any observations in relation to the funds flow mechanism under STRIVE – Nov 2020 onwards  Demonstration of Bank of India dashboard – Oct 31, 2020 Results PDO Indicators by Objectives / Outcomes Results Area 1: Improved Performance of Industrial Training Institutes IN00896192 ►Increase in the number of graduates from ITIs that have signed PB Grant Agreements (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 3.00 20.00 Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 Selection of 200 ITIs has been completed and Performance Based Grant Agreements (PBGAs) signed. The number of graduates in project ITIs has increased by 3%, as per current data available with the NPIU. With Comments the 2020 enrolments due to finish in 2 months, this is expected to go up to 5%. IN00896194 ►Female enrollment rate in ITIs with signed PB Grant Agreements (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 9.70 9.70 19.25 15.00 Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 As per data from selected ITIs, female enrolment stands at 19.25%. Hence, the target for the said year 11% Comments and 12.5% are already achieved. Achievement of target is currently being verified by the IVA. IN00896195 ►Percentage of graduates from ITIs that have signed PB Grant Agreements who are in gainful employment one year after graduation (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 50.00 50.00 50.00 50.00 Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 30-Nov-2022 Comments Not yet due. 11/13/2020 Page 6 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) Results Area 2: Increased capacities of State Govts. to support ITIs and Apprenticeship Training IN00896193 ►Number of Participating States that have reduced the vacancies of sanctioned trainers’ posts by at least 20% in government ITIs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 7.00 15.00 Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 The DGT has indicated that 7 states may have already achieved instructor vacancy reduction targets. Data Comments collection is currently underway. Results Area 3: Improved Teaching and Learning IN00896184 ►Number of teachers who have completed pre-employment or in-service distance learning/blended modules (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 5,000.00 5,000.00 18,567.00 20,000.00 Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 Details yet to be provided by the DGT Comments Results Area 4: Improved and Broadened Apprenticeship Training IN00896185 ►Number of ICs that have introduced at least 2 different apprenticeship programs within their participating (member) industries (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 30.00 Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 30-Nov-2022 The DGT is currently working towards running a pilot IAI grant scheme with 11 ICs. Simultaneously calls for application for 19 more ICs have also been floated. The DGT expects that at least 4 ICs will be able to Comments achieve the target by the end of the year, thereby achieving the minimum threshold of this scalable target. Crosscutting IN00896191 ►Direct Operation beneficiaries; % Female (Text, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0; Female: 0% 0; Female: 0% 135,000; Female: 10% 400000; Female: 12% Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 Comments Intermediate Results Indicators by Results Areas 11/13/2020 Page 7 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) Results Area 1: Improved Performance of Industrial Training Institutes IN00896196 ►IR Indicator 1.1: Percentage increase in enrollment across ITIs with signed PB Grant Agreement (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 15.00 25.00 Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 Details yet to be provided by the DGT Comments IN00896200 ►IR Indicator 1.2: Percentage of trainees undergoing OJT across ITIs with signed PB Grant Agreements (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 2.00 2.00 10.00 25.00 Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 Details yet to be provided by DGT Comments Results Area 2: Increased Capacities of State Govts. to support ITIs and Apprenticeship Training IN00896197 ►IR Indicator 4.1: Number of Participating States that have conducted tracer studies (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 1.00 1.00 15.00 Date 31-Mar-2017 14-Aug-2020 14-Aug-2020 30-Nov-2022 A pilot tracer study had been conducted in Haryana and the report has been accepted by the NPIU. This Comments marks achievement of the target for 2020. IN00896201 ►IR Indicator 4.2: Percentage of trainees in government ITIs who are from ST populations (Percentage, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 1.35 1.35 4.00 4.00 Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 Details yet to be provided by the DGT, however data now available indicates that the target would be Comments exceeded. Results Area 3: Improved Teaching and Learning IN00896198 ►IR Indicator 5.1: Number of CTS trades for which ICT-based teaching and learning packages have been developed (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 6.00 4.00 11/13/2020 Page 8 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 30-Nov-2022 6 CTS trades courses are under development. Comments IN00896202 ►IR Indicator 5.2: Number of CITS trades upgraded (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 4.00 Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 30-Nov-2022 Details yet to be provided by the DGT Comments Results Area 4: Improved and Broadened Apprenticeship Training IN00896199 ►IR Indicator 6.1: Number of ICs receiving IAI Grants that have reached a female enrollment of 12% in their respective apprenticeship programs (Number, Custom) Baseline Actual (Previous) Actual (Current) End Target Value 0.00 0.00 0.00 10.00 Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 30-Nov-2022 Details yet to be provided by the DGT Comments Disbursement Linked Indicators DLI_IND_TABLE ►DLI 1 Increase in the number of graduates from ITIs that have signed PB Grant Agreements (Outcome, 18,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2021/22 (Year 5) Value 0.00 0.00 3.00 -- Date 31-Mar-2017 13-Feb-2019 18-Sep-2020 -- Comments ►DLI 2 Improvement in industrial training and employment outcomes for trainees and graduates of ITIs that have signed PB Grant Agreements (Outcome, 21,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2021/22 (Year 5) Value 2%,50% 2%,50% 2%,50% -- Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 -- Based on the OJT data collected so far from 85 of the 200 selected ITIs, the DGT has indicated that the Comments current year target may be met or exceeded. 11/13/2020 Page 9 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) ►DLI 3 Reduction in ITIs’ trainer vacancies and improvements in training of trainers (Outcome, 20,500,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2021/22 (Year 5) Value 0,0 0.00 0.00 -- Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 -- The DGT’s data from Jun/ Jul points towards a trend of decreased instructor vacancy rates and 5 states were Comments estimated to have achieved their targets. This would mark the achievement of current year targets. ►DLI 4 Number of Participating States that have conducted tracer studies (Intermediate Outcome, 18,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2021/22 (Year 5) Value 0.00 1.00 1.00 -- Date 31-Mar-2017 14-Aug-2020 14-Aug-2020 -- A pilot tracer study had been conducted in Haryana and the report has been accepted by the NPIU. This Comments marks achievement of current year target. ►DLI 5 Number of ICs that have introduced at least 2 different apprenticeship programs within their participating (member) industries (Outcome, 22,500,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2021/22 (Year 5) DLR period 1 (2017-18) DLR period 1 (2017-18) for this indicator that for this indicator that states “MSDE has states “MSDE has developed and developed and Value 0.00 approved/adopted the -- approved/adopted the Operations Manual for Operations Manual for the the IAI Grant IAI Grant mechanism” has mechanism” has been been achieved. achieved. Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 -- Operations Manual prepared and adopted by the DGT. The DGT is also currently working towards running a pilot IAI grant scheme with 11 ICs. Simultaneously calls for application for 19 more ICs have also been floated. Comments The DGT expects that at least 4 ICs will be able to achieve the target by the end of the year, thereby achieving the minimum threshold of this scalable target ►DLI 6 Increase in female enrollment rate in ITIs with PB Grant Agreements and ICs receiving IAI Grants (Outcome, 19,000,000.00, 0%) Baseline Actual (Previous) Actual (Current) FY2021/22 (Year 5) Value 9.7%,0 0.00 0.00 -- Date 31-Mar-2017 13-Feb-2019 13-Feb-2019 -- Comments Although details are yet to be provided by the DGT for ICs, As per data from selected ITIs female enrolment during 2019-20 stands at 18%. Hence, the target for the said year 11% and 12.5% are already achieved. The data is also ready for verification by IVA and the verification exercise is expected to start by mid-September 2020. 11/13/2020 Page 10 of 11 The World Bank Implementation Status & Results Report Skills Strengthening for Industrial Value Enhancement Operation (P156867) 11/13/2020 Page 11 of 11