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CONTENTS
I. PROJECT DESCRIPTION 1
II. IMPLEMENTATION PLANS 5
A. Project Readiness Activities 5
B. Overall Project Implementation Plan 6
III. PROJECT MANAGEMENT ARRANGEMENTS 9
A. Project Implementation Organizations: Roles and Responsibilities 9
B. Technical Assistance 10
C. Key Persons Involved in Implementation 10
D. Project Organization Structure 11
IV. COSTS AND FINANCING 14
A. Detailed Cost Estimates by Expenditure Category 16
B. Allocation and Withdrawal of Loan Proceeds 17
C. Detailed Cost Estimates by Financier 18
D. Detailed Cost Estimates by Output 19
E. Detailed Cost Estimates by Year 20
F. Contract and Disbursement S-curve 21
G. Fund Flow Diagram 22
V. FINANCIAL MANAGEMENT 23
A. Disbursement 27
B. Accounting 29
C. Auditing 29
VI. PROCUREMENT AND CONSULTING SERVICES 31
A. Advance Contracting and Retroactive Financing 33
B. Procurement of Goods, Works, and Consulting Services 33
C. Procurement Plan 33
D. Consultant’s Terms of Reference 37
VII. SAFEGUARDS 37
VIII. GENDER AND SOCIAL DIMENSIONS 38
IX. PERFORMANCE MONITORING, EVALUATION, REPORTING AND
COMMUNICATION 42
A. Project Design and Monitoring Framework 42
B. Monitoring 45
C. Evaluation 46
D. Reporting 46
E. Stakeholder Communication Strategy 47
X. ANTICORRUPTION POLICY 47
XI. ACCOUNTABILITY MECHANISM 48
XII. RECORD OF PAM CHANGES 49
APPENDIXES:
1. The project administration manual (PAM) describes the essential administrative and management
requirements to implement the project on time, within budget, and in accordance with Government
and Asian Development Bank (ADB) policies and procedures. The PAM should include references
to all available templates and instructions either through linkages to relevant uniform resource
locator or internet address (URLs) or directly incorporated in the PAM.
2. The Government of Odisha acting through its Skill Development and Technical Education
Department (SDTED) and Odisha Skill Development Authority (OSDA) are wholly responsible for
the implementation of ADB-financed projects, as agreed jointly between the borrower and ADB,
and in accordance with the policies and procedures of the government and ADB. ADB staff is
responsible for supporting implementation including compliance by SDTED and OSDA of their
obligations and responsibilities for project implementation in accordance with ADB’s policies and
procedures.
3. At loan negotiations, the borrower and ADB have agreed to the PAM and ensured consistency
with the loan agreement. Such agreement is reflected in the minutes of the loan negotiations. In
the event of any discrepancy or contradiction between the PAM and the loan agreement, the
provisions of the loan agreement shall prevail.
4. After ADB Board approval of the project's report and recommendations of the President (RRP),
changes in implementation arrangements are subject to agreement and approval pursuant to
relevant government and ADB administrative procedures (including the Project Administration
Instructions) and upon such approval they will be subsequently incorporated in the PAM.
I. PROJECT DESCRIPTION
1. The project will support the Government of Odisha (GOO) in training around 200,000
youth in the ages of 15–34 to increase their skills, employability, and income. The project aims to
train new entrants and existing workers in priority sectors such as manufacturing, construction,
and services for formal employment. The project will benefit youth, women, and disadvantaged
groups.1
2. Odisha’s economy is in transition, with the industry and services sectors having emerged
as the main drivers of growth. Between 1996 and 2015, agriculture’s share of gross state domestic
product declined from 32% to 15%, industry’s share almost doubled from 18% to 33%, and the
contribution of services stayed at around 51%. Odisha also achieved the largest reduction in
poverty (by 25 percentage points) among India’s major states between 2005 and 2013.2 Yet
Odisha’s poverty rate at 33% remains one of the highest in India. Despite economic
transformation, half of the working population continues to be employed in agriculture, while one-
quarter are employed in industry and another quarter in services. Nearly 80% of the employed
are in the informal sector. The main challenge for Odisha’s economy lies in moving its labor force
from the less productive agriculture and the informal sector to the more productive formal sector
where wages are higher.3
3. A core problem in Odisha is the low employability of its young workforce in the formal
sector due to their low skill levels. Youth aged 15–34 make up one-third of Odisha’s population of
42 million. While the youth unemployment rate (6.8%) is slightly higher than the national average
(5.8%), the underemployment rate (11.0%) is nearly double the national average (6.0%).4 Only a
very small proportion of the youth has had any formal vocational training (1.8%, compared to the
national average of 3.7%), and their education level is below the national average.5 Women are
even less likely than men to be educated or have any formal vocational training, and a significant
gender gap exists in labor force participation (29% for women and 80% for men aged 15–34).
4. Under the national “Make in India” and “Skill India” campaigns, the Government of India
emphasizes building the skills of the youth to obtain high-quality jobs and higher wages in the
manufacturing and services sectors. Yet, states like Odisha, which have large tribal and
disadvantaged populations and large young workforce, face significant challenges in equipping
their populations with skills to meet labor market needs. According to a skills-gap study
commissioned for Odisha by the National Skill Development Corporation, demand for semiskilled
and skilled workers will continue to increase.6 The cumulative demand–supply gap for skilled
workers during 2011–2026 is estimated to be about 4 million, with high demand in the key sectors
such as construction, manufacturing, transportation and logistics, information technology (IT) and
IT-enabled services, education and financial services, and health care. Since Odisha is a net
exporter of workers to other parts of India and abroad, the demand for skilled workers will likely
be even greater.
1 Asian Development Bank (ADB) provided a project preparatory technical assistance for Preparing the Odisha Skill
Development Project (TA 8593).
2 Government of Odisha. 2015. Odisha Economic Survey, 2014–2015. Bhubaneswar.
3 National Commission for Enterprises in the Unorganized Sector. 2009. The Challenge of Employment in India: An
Informal Economy Perspective. New Delhi.
4 ADB staff estimates using data from the Government of India, Ministry of Statistics and Programme Implementation.
National Sample Survey, 2011–2012. New Delhi.
5 In Odisha, the percentage of youth with education up to grade 10 is 25% compared to 32% nationwide; and the
percentage of those with a diploma or higher certificate is 7% compared to 11% nationwide.
6 Ernst & Young. 2012. Skill Gap Assessment for the State of Odisha: A District Wise Analysis. Kolkata.
2
5. Odisha aimed to train 1 million people by the end of the Twelfth Five-Year Plan, 2012–
2017. It further aims to train additional 800,000 people by 2019. However, the capacity and quality
of existing training programs are far from adequate to meet this target. The state has trained only
about 330,000 people during 2014–2015. To cope with skilling demand, the state government
has introduced several initiatives. It established a high-level Odisha State Employment Mission
(OSEM) in 2005–2006 to address the problems of youth unemployment and underemployment.
It also established the Skill Development and Technical Education Department (SDTED) in 2015
to improve coordination among different government agencies responsible for skills training,
employment generation services, and labor regulation.7 Yet, the state government’s investment
in skills training such as in industrial training institutes (ITIs) under the Directorate of Technical
Education and Training (DTET) has not responded adequately to industry needs due to poor
training infrastructure and outdated skills standards, assessment, and certification processes.
6. Odisha’s current skills development system faces numerous constraints: (i) training
capacity is insufficient to meet the 5-year plan target, and the geographic spread of training
institutions is uneven; (ii) the quality and relevance of training is inadequate due to outdated
curricula and equipment, and a shortage of industry-experienced trainers, especially at ITIs; (iii)
a robust quality assurance system is lacking to benchmark training institutions to international
standards; (iv) employer linkages of training programs are weak; (v) limited autonomy in public
institutions constrains market-responsive training; (vi) the skills ecosystem is fragmented with
weak institutional coordination; (vii) mentoring institutions to transform ITIs into more effective
institutions are absent; and (viii) viable training models are in need to deliver advanced skills
programs, particularly for higher-cost, capital-intensive manufacturing.
8. The proposed project will help the Government of Odisha transform its skills development
system by establishing eight new ASTIs and invigorating government ITIs under a hub-and-spoke
model.9 The proposed model aims to expand the state’s training capacity, uplift the quality of skills
training, and strengthen the market relevance of training programs, which would enhance the
skills and employability of young workforce for the high-demand priority sectors. The project
design incorporates emerging national and international good practices and lessons learned.10
The following are specific innovative features of the project:
(i) A hub-and-spoke model. The project will establish a network of eight ASTIs as
hubs and 30 government ITIs as spokes. Each hub will serve as a resource center
7 The state government established the Employment, Technical Education, and Training Department in 2012, which
was renamed the SDTED in 2015.
8 OSDA succeeds the previous Odisha Skill Development Society, created in 2015, by merging with OSEM. This
merger created a more consolidated institution to coordinate and implement skills development initiatives in Odisha.
9 No ASTI currently exists; all eight ASTIs are to be established under the project.
10 Lessons Learned (accessible from the list of linked documents in Appendix 2).
3
(ii) Private sector engagement. OSDA will engage experienced private training
institutions to operate and maintain the ASTIs in partnership with international
partners and to boost the market relevance of training programs. This arrangement
will support the “Make in India” and “Skill India” campaigns, by incentivizing private
operators to develop sustainable quality training models and scale up skills for job
opportunities in manufacturing and services within and outside Odisha. OSDA will
also set up an industrial advisory committee consisting of one representative from
each priority sector to facilitate on-the-job training, upskilling of existing workers,
and employer linkages, while mobilizing resources from corporate social
responsibility to ensure sustainability.
(iii) Convergence with national policies and priorities. The project is aligned with
the National Policy for Skill Development and Entrepreneurship 2015, which the
Ministry of Skill Development and Entrepreneurship approved in July 2015. This
alignment ensures that training courses comply with the requirements of the
National Skills Qualification Framework. It also ensures that a robust quality
assurance system is in place by (a) applying emerging standards set by sector
skills councils and the National Skill Development Agency, (b) enhancing capacity
to train trainers and assessors, (c) benchmarking ASTIs and ITIs, and (d)
institutionalizing a credible assessment and certification system.
9. The project reflects the Asian Development Bank’s (ADB) priorities in its country
partnership strategy, 2013–2017 for India, which reinforces India’s efforts to achieve inclusive
growth and recognizes education, especially vocational training, as a new sector in ADB’s India
operations.11 The project is aligned with the Midterm Review of Strategy 2020, which emphasizes
the need for ADB to expand lending for post-basic education and vocational training to develop
human capital, and facilitate public–private partnerships to leverage results.12 Odisha will be the
third state to receive ADB support for skills development, after the states of Meghalaya and
Kerala.13
10. Impact and outcome. The impact will be reduced unemployment and underemployment
rates for female and male youth (aged 15–34) by 2025. The outcome will be increased skills and
employment in the priority sectors for the working-age population, which will be achieved through
the following outputs.
Administration of Technical Assistance Grant to India for Supporting Human Capital Development in Meghalaya.
Manila; ADB. 2014. Report and Recommendation of the President to the Board of Directors: Proposed Results-
Based Loan and Administration of Technical Assistance Grant to India for Supporting Kerala’s Additional Skill
Acquisition Program in Post-Basic Education. Manila.
4
12. Output 2: Quality and relevance of skills development programs improved. This
output focuses on ensuring the quality of training programs by supporting the following sub-
outputs: (i) a robust quality assurance system established to ensure that training programs meet
acceptable standards and apply credible assessment and certification procedures; (ii) a pool of
about 250 master trainers created and a mechanism developed to train about 14,000 trainers,
including about 1,000 assessors; (iii) eight ASTIs and 30 ITIs benchmarked against a set of key
performance indicators to be identified; and (iv) technology-enabled training and learning
programs promoted.
13. Output 3: Skills ecosystem strengthened. In line with the national priority to consolidate
and strengthen training programs within a common framework at the state level, this output
comprises the following sub-outputs: (i) partnerships with international and national knowledge
institutions and other government departments promoted; (ii) career counseling and placement
centers established in each of the eight ASTIs and 30 ITIs; (iii) self-employment initiatives piloted
to train 5,000 people to demonstrate viable replication and scaling-up schemes; and (iv) a skill
database and inventory developed to help recruit appropriate candidates and to link trainees with
potential employers before training begins.
14. Output 4: Institutional capacity strengthened. This output aims to strengthen the
capacity of institutions, including the SDTED, OSDA, DTET, and ITIs, to ensure the effective
implementation of planned activities. There are four sub-outputs: (i) financial and administrative
autonomy of OSDA strengthened; (ii) public or private operators engaged to manage and operate
the ASTIs under OSDA supervision; (iii) a robust and unified monitoring and evaluation system
institutionalized; and (iv) a project management consultant (PMC) team engaged to strengthen
ITI leadership and to support OSDA, SDTED, and DTET.
14 The ADB loan will finance civil works for six ASTIs and equipment for all eight ASTIs.
15 The government will finance hostels, workshops, and laboratory equipment for the ITIs.
5
15. The implementation roles and responsibilities are summarized in the table below:
B. Technical Assistance
ADB
South Asia Human and Social Name: Mr. Sungsup Ra
Development Division Position: Director
Telephone: 632-632-4629
Email: sungsupra@adb.org
Mission Leaders Name: Ms. Sunhwa Lee
Position: Principal Social Sector Specialist
Telephone: 632-632-5750
Email: sunhwalee@adb.org
17. The overall organization structure of the Odisha Skill Development Project (OSDP) is
depicted in the chart below:
DTET would be responsible for ITI OSDP Core Team (PMU for OSDP) will
activities under the project be responsible for all ASTI-related
activities and all ITI-related
procurement
ITIs
ASTIs
ASTI = advance skill training institute, CEO = chief executive officer, DTET = Directorate of Technical Education and
Training, ITI = industrial training institute, OSDA = Odisha Skill Development Authority, OSDP = Odisha Skill
Development Project, PMU = project management unit, SDTED = Skill Development and Technical Education
Department.
Source: Asian Development Bank.
12
18. The government of Odisha has established the OSDA with financial and administrative
autonomy to lead skills development in Odisha. The OSDS, which was established in 2015 to
implement OSDP and OSEM, have been merged with OSDA. A major responsibility of OSDA is
to implement OSDP. The executing agency for the project will be the government of Odisha acting
through the SDTED. A project management unit (PMU) will be established under OSDA, headed
by a chief executive officer (CEO) and a management team, all recruited competitively with
market-based remuneration. A project steering committee (PSC) has been established headed
by the chairman of OSDA as president of PSC. Other members of the PSC are secretary of
SDTED (vice-president), director of DTET (member), and CEO of OSDP as member convener.
The PSC can co-opt members from any department as needed. The PSC will endeavor to
encourage all the departments involved in skills development in the state to utilize the training
programs offered by ASTIs and ITIs under the OSDP.
19. The main tasks of the PSC will be to (i) review and endorse annual work programs, targets,
and budget; (ii) review progress at least once a month, provide guidance, and make key decisions
related to project implementation in line with annual work program, targets, budget, and OSDA’s
emerging priorities; (iii) remove any implementation bottlenecks to expedite implementation, as
needed; and (iv) facilitate synergy and partnerships across relevant government institutions,
departments, and private sector institutions. Delegation of financial powers has been finalized to
facilitate smooth implementation of the project.
20. The PMU will be responsible for (i) establishing and operating the ASTIs; (ii) managing
project funds including, but not limited to, payments, accounting, auditing, etc.; (iii) contracting all
civil works, consultants, service providers, and other contracts; and (iv) coordinating with PSC,
SDTED, and DTET for smooth implementation of the project, including environmental and social
safeguards and submission of withdrawal claims and all project reports to ADB. The OSDP PMU
will also include a team of PMCs, who will ensure compliance with accounts, finance, gender,
social, and environmental safeguard requirements under the project. These individual consultants
will coordinate with other agencies to ensure all necessary compliances.
21. An industry advisory committee comprising eminent industry persons—minimum one for
each of the 10–12 sectors in which training is being offered under the project—would be
established to support OSDA and its network of institutions. The committee will ensure industry
linkages of training programs for employment, as well as build synergy across skill training
programs.
22. The proposed organizational structure of the OSDP PMU is depicted below and detailed
descriptions of the structure and key positions are provided.
23. The proposed OSDP PMU organization structure is based on the key functions required
to manage the OSDP effectively. A set of key functions in OSDP PMU includes strategy
formulation, mobilization, counseling, training, placement, trainee tracking, assessment and
certification, content development, trainer development, deployment of educational technologies,
sector-wise program management, development of domestic industry partnerships, development
of overseas industry partnerships, arrangements for seeking CSR support, project management,
procurement, and ongoing maintenance of assets. The support functions include administration,
legal, human resources, IT, internal audit, finance & accounting, and procurement. The
organizational units have been developed based on the grouping of functions that have close
relationship; some functions will be outsourced based on their critical importance (e.g., internal
audit), while cross functional teams will also be created for those that require close coordination.
13
24. The OSDP PMU organization structure is shown in the figure below:
Internal Audit
QA Firm
(International)
GM Training
GM = general manager, HR = human resources, PMC = project management consultant, QA = quality assurance.
Source: Asian Development Bank.
25. The CEO will have overall strategic and operational responsibility for OSDP management,
execution of its vision and mission, and achievement of its targets and objectives. He/she will be
reporting to the vice-president of PSC (secretary of SDTED) for regular implementation of OSDP
and will prepare progress reports and decision points for monthly meeting with the PSC. The CEO
will be supported by a five-member management team as shown in the figure above. He/she will
also have an internal audit team that would provide independent reports to him/her based on
periodic audit of operations. The internal audit function will be outsourced. An internal audit firm
which is familiar with government accounting methods will be recruited to audit at least 10% of
the vouchers. In addition, there would be a quality audit firm to independently assess the quality
of ASTIs, programs, and courses.
26. The General Manager, Training Operations and Industry Partnerships is responsible for
(i) achievement of OSDP training target of overall 200,000 persons of two kinds —those trained
within ASTIs and those outside ASTIs; (ii) review of ASTI annual training and placement plans
sector-wise, district-wise, and learner segment-wise; (iii) monitoring of the operations of ASTIs
and ensuring that the targets are achieved; (iv) training and placement of youth in the spoke ITIs,
those undergoing RPL, and those training for self-employment; (v) strategies for industry
engagement at OSDA level to ensure job placements for training graduates, as well as strategies
for achieving targets for both domestic and overseas placements; (vi) development of industry
partnerships overseas; (vii) coordinating with industry/ human resource heads for industry
involvement in each ASTI for trainers, content development support, apprenticeships, on-the-job
training, and placements; and (viii) linking with industry for CSR support. The general manager
will support and facilitate the functions of the industry advisory group.
27. The General Manager, Learning and Quality Assurance is responsible for the following:
(i) designing and implementation of a quality assurance framework in the OSDA training network;
(ii) monitoring quality in delivery of training in the OSDA training network; (iii) developing training
content to be used for various programs in the OSDA network; (iv) new program development;
(v) development of master trainers, trainers, and assessors; (vi) forging international and national
14
knowledge partnerships for the OSDA network; (v) working with the sector skills councils, National
Council for Vocational Training, and other national accreditation agencies on various technical
aspects of the programs being offered in the OSDA network; and (vi) coordinating with the
General Manager Industry Partnerships and General Manager Trainee & Community
Engagement for implementation of effective training.
28. The General Manager, Projects is responsible for (i) project management of the
establishment of the eight ASTI building infrastructure—both temporary and permanent; (ii)
project management of the construction activities in the spoke ITIs; (iii) project management of
the equipment installation and commissioning of training both in the ASTIs and spoke ITIs; (iv)
maintenance services to the OSDA on commencement of operations; and (v) due diligence,
supervisory, monitoring, and reporting on social and environmental safeguards requirements.
29. The General Manager, Finance, Administration, Procurement and Contract Management
is responsible for the following: (i) accounting and financial reporting on OSDA projects (ASTIs
and ITIs) and operations; (ii) audit of ASTI finances; (iii) supporting audit of OSDA finances by
external auditors; (iv) management of working capital; (v) organization and support of
procurement and disbursement of ADB loan and government funds; (vi) vendor management,
procurement, and contract management for both projects and operations; (vii) administration
including legal functions of OSDA; (viii) human resources management; and (ix) IT function
including, networking and enterprise resource planning.
30. Delegation of financial powers. For smooth implementation of the project, the following
delegation of powers will be followed.
31. The project is estimated to cost $162 million, inclusive of taxes, duties, interests, and other
charges (Table 5).16 Detailed cost estimates by financier and by year are included in the later
sections.
16 ADB financing will cover taxes and duties that (i) are within the reasonable threshold identified during the country
partnership strategy preparation; (ii) do not represent an excessive share of the investment plan (7.8% of the loan);
(iii) apply only to ADB-financed expenditures; and (iv) are considered relevant to the success of the project. Any
incidental expenditures relating to bank charges, local transport, freight, and insurance are eligible for ADB financing.
15
training, surveys, and studies. Price contingencies computed at 0.3% to 1.5% on foreign exchange costs and 5% to
5.5% on local currency costs in line with escalation rates published by ADB at http://lnadbg1.adb.org/erd0004p.nsf;
includes provision for potential exchange rate fluctuation under the assumption of a purchasing power parity
exchange rate.
d Includes interest and commitment charges. Interest during construction for ADB loan has been computed at the 5-
year forward London interbank offered rate plus a spread of 0.5%. Commitment charges for an ADB loan are 0.15%
per year to be charged on the undisbursed loan amount.
Source: Asian Development Bank estimates.
32. The Government of India has requested a loan of $102 million from ADB’s ordinary capital
resources to help finance the project. The loan will have a 20-year term, including a grace period
of 5 years, an annual interest rate determined in accordance with ADB’s London interbank offered
rate (LIBOR)-based lending facility, a commitment charge of 0.15% per year, and such other
terms and conditions set forth in the loan and project agreements. Based on the straight-line
payment method, the average loan maturity is 12.75 years, and there is no maturity premium
payable to ADB. The loan from ADB will finance (i) civil works and equipment, (ii) consulting
services and capacity building, (iii) training costs, and (iv) administrative costs.
33. The financing plan is in Table 6. The ADB loan will finance 63% of the project cost. This
is considered acceptable, taking into account that the government of Odisha has allocated
counterpart financing for 37% of the cost. The state government will provide $60 million equivalent
to cover (i) part of civil works, equipment, consultancy and administrative costs pertaining to the
ITIs; (ii) taxes and duties; (iii) interest during construction and commitment charges; and (v)
contingencies. The state government will provide the loan proceeds and counterpart funds to
SDTED through budgetary allocations.
34. Detailed cost estimates by expenditure category, financier, project outputs, and year are
given in tables in the subsequent section.
16
on foreign exchange costs and 5% to 5.5% on local currency costs in line with escalation rates published by ADB at http://lnadbg1.adb.org/erd0004p.nsf; includes provision for potential exchange
rate fluctuation under the assumption of a purchasing power parity exchange rate.
d
Includes interest and commitment charges. Interest during construction for ADB loan has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%.
Commitment charges for the ADB OCR loan are 0.15% per year to be charged on the undisbursed loan amount.
Source: Asian Development Bank estimates.
17
Skills Development
100% of total expenditure
3 Training and 21,324,000
claimed*
Workshop
4 Consultants 6,214,000
Quality Assurance /
47% of total expenditure
4B Capacity 2,575,000
claimed*
Development
Administration –
Project Management 100% of total expenditure
5 3,500,000
Unit Core Team and claimed*
Operating Expenses
6 Unallocated 6,843,000
TOTAL 102,000,000
PMC = project management consultant, PMU = project management unit.
*Subject to the conditions for withdrawal described in the Loan Agreement (paragraph 6 of Schedule 3).
Source: Asian Development Bank.
18
on foreign exchange costs and 5% to 5.5% on local currency costs in line with escalation rates published by ADB at http://lnadbg1.adb.org/erd0004p.nsf; includes provision for potential exchange
rate fluctuation under the assumption of a purchasing power parity exchange rate.
d
Includes interest and commitment charges. Interest during construction for ADB loan has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%.
Commitment charges for the ADB OCR loan are 0.15% per year to be charged on the undisbursed loan amount.
Source: Asian Development Bank estimates.
19
on foreign exchange costs and 5% to 5.5% on local currency costs in line with escalation rates published by ADB at http://lnadbg1.asaindevbank.org/erd004p.nsf; includes provision for potential
exchange rate fluctuation under the assumption of a purchasing power parity exchange rate.
d Includes interest and commitment charges. Interest during construction for ADB loan has been computed at the 5-year forward London interbank offered rate plus a spread of 0.5%.
Commitment charges for the ADB OCR loan are 0.15% per year to be charged on the undisbursed loan amount.
Source: Asian Development Bank estimates.
21
35. The graph below shows projections for contract awards and disbursement over the life of
the project, and the table shows annual cumulative estimates for contract awards and
disbursement projections for the ADB loan.
Table 12: Contract Awards and Disbursement Projections for ADB Loan (US$ million)
FY2017–2018 FY2018–2019 FY2019–2020 FY2020–2021 FY2021–2022
Description
Year 1 Year 2 Year 3 Year 4 Year 5
Cumulative Contract Awards 46.0 65.0 85.0 95.0 102.0
Cumulative Disbursements 13.3 46.5 75.5 92.5 102.0
Notes:
1. Implementation Period: 60 months (advance actions are ongoing).
2. Physical Completion Date: 30 June 2022.
3. Financial Loan Closing Date: 31 December 2022 (excluding winding-up period of 4 months)
22
ADB
Government
Step of
India (Borrower)
5 – Withdrawal Step 6 – Payment by
Ministry of Finance - AAAD/CAAA
Step 7 – Loan
proceeds transfer
Step 7 – Loan
Government of Odisha
(Finance Department)
State Share
OSDA (IA)
Step 3 – Submission Step 2 – Make
of invoice payment
Legend
Vendors/Contractors/Consultants
Flow of funds
Submission of WA claims
Submission of invoices
AAAD = Aid, Accounts and Audit Division, ADB = Asian Development Bank, CAAA = Controller of Aid, Accounts and
Audit, EA = executing agency, IA = implementing agency, OSDA = Odisha Skill Development Authority, SDTED =
Skill Development and Technical Education Department, WA = withdrawal application.
Source: Asian Development Bank.
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V. FINANCIAL MANAGEMENT
38. Overall financial reporting and accounting arrangements are adequate, as the SDTED,
OSDA, and DTET are governed by the existing Odisha Government Financial Rules and the
Delegation of Financial Powers Rules; external audit is conducted by the Supreme Audit
Institution. A project steering committee headed by the chairman of OSDA, secretary of SDTED
(vice-president), director of DTET (member), and CEO of OSDP PMU (member convener) has
been established. On the weaker side, accounting records are maintained manually, the internal
audit function is either weak or nonexistent, and staffing is currently insufficient.
39. The overall financial management risk for the project is rated as Substantial, primarily
because OSDA is a newly established entity with no prior experience in donor-funded projects.
The financial management action plan is given in Table 13 below to mitigate key risks.
40. Overall, the project arrangements with appropriate mitigation measures are considered
satisfactory. The OSDA, as a newly formed authority for implementation of the project, needs to
ensure that all essential systems and mechanisms noted in the table above are in place with
regard to staffing, procedures, systems, controls, and manuals in a timely manner.
41. Key findings, potential risks, and corresponding mitigation measures for financial
management are summarized in Table 14 below.
26
3. Staffing – SDTED as the executing Moderate SDTED needs to increase its staff
agency is not adequately staffed to which will undertake budgeting,
manage all FM related activities. monitoring and other activities for
the project.
4. Accounting policies and Moderate OSDA will be governed by a
procedures – While SDTED has well separate FM Manual.
documented accounting policies and
procedures, in view of the CAG audit
findings on financial management, the
risk remains in incomplete conformity
to the policies and procedures.
A. Disbursement
42. The loan proceeds will be disbursed in accordance with ADB’s Loan Disbursement
Handbook (2015, as amended from time to time).
43. Pursuant to ADB's Safeguard Policy Statement (SPS) (2009), ADB funds may not be
applied to the activities described on the ADB Prohibited Investment Activities List set forth at
Appendix 5 of the SPS.
28
44. Disbursements will be made pursuant to ADB's reimbursement procedure where ADB
pays from the loan account to the borrower’s account for eligible expenditures which have been
incurred and paid for by the project out of its budget allocation or its own resources. Other
disbursement methods as outlined in ADB’s Loan Disbursement Handbook (2015) can also be
adopted, as suitable for the project.19 OSDA, who is delegated by SDTED, will be responsible for
(i) preparing disbursement projections, (ii) requesting budgetary allocations for counterpart funds
including ADB funds, (iii) collecting supporting documents from project activities, and (iv)
preparing and sending withdrawal applications to ADB through the office of Aid, Accounts and
Audit Division headed by the Controller of Aid, Accounts and Audit, Department of Economic
Affairs, Ministry of Finance, Government of India.
45. Before the submission of the first withdrawal application, the borrower should submit to
ADB sufficient evidence of the authority of the person(s) who will sign the withdrawal applications
on behalf of the borrower, together with the authenticated specimen signatures of each authorized
person. The minimum value per withdrawal application is $100,000 equivalent. Individual
payments below this amount should be paid by SDTED or OSDA and subsequently claimed to
ADB through reimbursement, unless otherwise accepted by ADB. The tables attached to
schedule 3 of the loan agreement will set forth the categories that are allocated including the
unallocated category that are to be financed out of loan proceeds. Disbursements will be made
using percentages of ADB financing on allocated portion. At a later stage, if the amount of loan
allocated to any category appears to be insufficient to finance all agreed expenditures in that
category, ADB may in consultation with and by notice to the borrower and the executing agency
shall reallocate the amounts in accordance with the provision of the schedule 3 of the loan
agreement.
46. On the basis of submission of withdrawal applications, funds from ADB will be disbursed
to the Government of India’s bank account held by the Controller of Aid, Accounts and Audit at
the Reserve Bank of India. Through budgetary allocations, funds will be transferred to the Odisha
state treasury bank account. The government of Odisha (GOO) shall ensure timely transfer of
these funds to the project accounts maintained at the SDTED level. The GOO will approve the
annual project budget based on the plan and budget requests prepared by the PMU/OSDA for
each major cost area to be financed, for example, civil works, equipment, etc. The GOO will then
allocate sufficient budget to a separate project account to enable the OSDA to pay for these
expenses. Only the OSDA will incur expenditure under the project. The funds from GOO finance
department will be initially transferred to a specific treasury account meant for the project at the
PMU/SDTED level. It will then transfer the received funds to the OSDA as per necessity. For start-
up of operations, GOO will transfer an appropriate sum of amount to the treasury bank account
of the PMU/SDTED, which will be transferred to the OSDA in its bank account as per the
requirement. The initial sum transferred by the GOO will be adjusted against allowable
expenditure of the project using reimbursement method of ADB disbursement procedures. To
finance retroactive claims after the loan being declared effective, reimbursement procedures will
be applicable under retroactive financing in case eligible expenditure has been incurred for the
purpose of the project prior to the loan effectiveness date.
47. As per notification of 2 May 2014 of Government of India, inter alia, direct disbursement
(direct payment) method should not be kept unless there are overwhelming reasons to keep it.
Therefore, subject to Government of India approval, in case direct disbursements (payments) are
19 Online training for project staff on disbursement policies and procedures is available at:
http://wpqr4.adb.org/disbursement_elearning. Project staff is encouraged to avail of this training to help ensure
efficient disbursement and fiduciary control.
29
desired any time during project implementation, the project shall ensure appropriate budgetary
provisions before submission of withdrawal applications. Upon transfer of funds by ADB to the
contractors directly, necessary accounting adjustment entries shall be passed by the project
finance and accounts team with the help of corresponding Additional Central Assistance releases
by the Department of Expenditure under the Ministry of Finance for timely updating the books of
accounts.
48. During implementation, in case of cash flow difficulties faced by the project, the PMU may
request for an initial imprest advance based on 6 months projections of estimated expenditures.
This is subject to an overall improvement in the internal control on fund flow within the state
treasury and the project accounts, as well as upon adequate financial management capacity
necessary for an ADB imprest procedure. The requirement for initial imprest advance will be
assessed for approval by ADB project officer for operation of imprest facility. For this purpose, a
separate subaccount at the PMU would need to be opened. The subaccount is a separate bank
account in local currency opened for the exclusive use of the project, as described in Chapter 10
- Imprest Fund Procedures of the ADB Loan Disbursement Handbook (2015). Withdrawals or
payments mainly for small items of expenditure can be done out from the sub account only upon
expenditure being incurred. Replenishments or liquidations to these sub accounts may be
requested using reimbursement or through statement of expenditure (SOE) procedure.
49. Statement of expenditure procedure. The SOE procedure will be used for
reimbursement of eligible expenditures. For reimbursable expenditures out of project loans, the
ceiling is $100,000 per payment. Supporting documents and records for the expenditures claimed
under the SOE should be maintained at PMU as relevant. ADB reserves the right to conduct spot
or random checks of expenditures covered by SOE through ADB review missions. Upon ADB's
request for submission of supporting documents on a sampling basis, and for independent audit,
these documents shall be readily made available for review by ADB's disbursement and review
missions, or upon ADB’s request for submission of supporting documents on a sampling basis
and for independent audit. Towards this, OSDA will have dedicated professional staff for financial
management of the project and ensure timely audit of the project accounts by an independent
auditor acceptable to ADB as per the terms of reference (TOR) agreed upon by ADB, Government
of India, and Comptroller and Auditor General (CAG).
B. Accounting
50. The OSDA delegated by the SDTED will maintain, or cause to be maintained, separate
books and records by funding source for all expenditures incurred on the project. The OSDA will
prepare consolidated project financial statements in accordance with the Government of India's
accounting laws and regulations, which are consistent with international accounting principles and
practices. Project financial statements shall include at a minimum, a statement of receipts and
payments with accompanying notes and schedules. These shall be prepared to ensure maximum
alignment to international accounting standards and Government of India’s financial regulations.
The OSDA should refer to the CAG-approved template financial statements for ADB-funded
projects.
C. Auditing
51. The OSDA will cause the consolidated project financial statements to be audited in
accordance with International Standards on Auditing and with the government's audit regulations,
by an independent auditor acceptable to ADB. The audited project financial statements will be
submitted in the English language to ADB within 6 months of the end of the fiscal year.
30
52. The annual audit report for the project accounts will include audit opinions, which cover (i)
whether the project financial statements present a true and fair view or are presented fairly, in all
material respects, in accordance with the applicable financial reporting framework; (ii) whether
loan proceeds were used only for the purposes of the project or not; and (iii) the level of
compliance for each financial covenant contained in the legal agreements for the project. If the
auditor issues a management letter, a copy will also be submitted to ADB.
53. The OSDA will also cause its entity-level financial statements to be audited in accordance
with International Standards on Auditing and with the government's audit regulations, by an
independent auditor acceptable to ADB. The audited entity-level financial statements, together
with the auditors’ report and management letter, will be submitted in the English language to ADB
within 1 month after their approval by the authority.
54. In addition, the OSDA will cause the financial statements of ASTIs to be audited in
accordance with International Standards on Auditing and with the government's audit regulations,
by an independent auditor acceptable to ADB. The ASTIs’ audited financial statements, together
with the auditors’ report and management letter, will be submitted in the English language to ADB
within 1 month after their approval by the authority.
55. To ensure timely submission of audited project financial statements, SDTED shall formally
request the CAG to include audits of its project accounts in their yearly work plan through the
Department of Economic Affairs. Unaudited project financial statements should be submitted to
CAG for audit within 3 months of the end of the fiscal year.
56. The government, SDTED, and the OSDA have been made aware of ADB’s approach on
delayed submission of audited project financial statements20 and the requirements for satisfactory
and acceptable quality of the audited financial statements. ADB reserves the right to require an
addition in the auditor (in a manner consistent with the constitution of the recipient, or for additional
support to be provided to the auditor), if the audits required are not conducted in a manner
satisfactory to ADB or if the audits are substantially delayed, ADB reserves the right to verify the
project’s financial statements to confirm that the share of ADB’s financing is used in accordance
with ADB’s policies and procedures.
57. Compliance with financial reporting and auditing requirements will be monitored by review
missions and during normal program supervision, and followed up regularly with all concerned,
including the external auditor.
58. Public disclosure of the project financial statements, including the audit report on the
project financial statements, will be guided by ADB’s Public Communications Policy (2011). After
the review, ADB will disclose the audited project financial statements and the opinion of the
auditors on the project financial statements no later than 14 days of ADB’s confirmation of their
acceptability by posting them on ADB’s website. The audit management letter and the entity level
financial statements will not be disclosed.
59. The OSDA shall install a suitable mechanism for an effective system of internal audit
function to assist the management in its oversight function.
60. Procurement under the project includes procurement of civil works for construction of six
ASTIs and hostels and training workshops at 30 spoke-ITIs; and procurement of goods for
laboratory and workshop equipment (skills training), computers, and furniture and furnishings.21
The civil works component will be entrusted to successful bidder(s) engaged through national
competitive bidding (NCB) procedures (as all civil works packages will be within the NCB
threshold value of $40 million). ADB standard bidding documents (SBDs) and procurement
procedures/guidelines will be used for selection of consulting services (Guidelines on the Use of
Consultants [2013, as amended from time to time]) and goods/equipment and civil works
construction (Procurement Guidelines [2015, as amended from time to time]). SBDs for small
works will be used for design build documents.
61. All procurement activities will be centralized and handled by OSDA. The DTET, Odisha,
Cuttack under the administrative control of SDTED, has good experience in handling goods
procurement. Therefore, DTET can assist OSDA in the procurement of equipment following NCB.
For the procurement of civil works and services, procurement experts will be recruited in OSDA
and also through the PMC firm. This firm will provide support to OSDA in procurement and other
implementation support throughout the project period. It is also suggested that a competent
engineer from government departments like the Works Department should be engaged on
deputation in OSDA to act as the project’s engineer to advise on contracts for ASTI construction,
and also to support other related works by OSDA.
62. In view of the size and components of the proposed program, the OSDA financial
management and procurement unit will be resourced with required expertise to ensure effective
procurement and related processes. The suggested measures to mitigate weak capacity of the
OSDA are as follows:
(i) delegation of powers to the OSDP CEO (project director) level with financial limits;
(ii) permanent procurement committee for tender evaluation and recommendations to
the government;
(iii) engage a consulting firm to support all procurement matters under the project and
also comply with ADB standard procurement guidelines; and
(iv) strengthen the OSDA procurement unit with qualified staff and resources.
21 Civil works and equipment for ASTIs will be financed by ADB loan and will be procured according to ADB guidelines.
The government funds will finance civil works and equipment for ITIs, which will follow the government’s procurement
procedures.
32
63. The following consultancies will be mobilized to ensure effective project management and
implementation support to OSDA. The services, to be financed by ADB loan, will be undertaken
as set out in ADB’s Guidelines on the Use of Consultants (2013, as amended from time to time).
Specific methods are proposed below. Where quality- and cost-based selection (QCBS) method
is proposed, the weight will be 80:20 for technical quality and cost, respectively. While the
summary TORs are provided in Appendix 4, a brief description is provided below:
(i) Project management consultants (PMC). The services will be financed by both
the ADB loan and the counterpart funding. It will use the QCBS method. The PMC
will help the SDTED, OSDA, and DTET in managing and supervising all the
components of the project. The main role of PMC for OSDA is categorized into
three broad areas: (a) OSDP administration and management, including
construction supervision; (b) project management support for managing the
implementation of project investments on infrastructure and facilities, as well as
supervision of ASTI and ITI construction; and (c) project management support for
managing the performance of skills training program implementation
(iii) Internal audit. A chartered accounting firm will be engaged to support the internal
audit function of OSDA using consultants’ qualification selection (CQS) method.
This will be financed by government funds.
64. OSDA will engage public or private training providers to undertake operations and
maintenance of the proposed ASTIs, and to deliver skills training in alignment with national and
international standards. Tailor-made request for proposal document and contracts will be
prepared and adopted for selecting and engaging private sector training providers. Master bidding
documents are available for ASTI construction, equipment, and engagement of consulting firms.
For engaging the ASTI operators, the documents are in line with the practice followed by other
states in India, which culminated into successful selection of the private sector entrepreneurs and
subsequent smooth implementation of the technical education institute projects. The tailor-made
request for proposal document and contracts shall be compliant with the provisions of ADB
Procurement Guidelines (2015, as amended from time to time) to the extent possible and follow
the principal requirement of competitiveness, transparency and value for money in the selection
process.
65. OSDA will engage a construction contractor based on standard bidding documents for
NCB following ADB procurement guidelines.22 The contractor shall be responsible for design,
preparation of detailed technical specifications and drawings, procurement, construction,
environmental and safety aspects, testing, commissioning, and meeting the executing agency’s
requirements based on initial drawings and specifications provided. An architect and a technical
and vocational education and training specialist have been engaged to prepare detailed
22 "2.12 (a) Borrowers shall use the appropriate SBDs issued by ADB with minimum changes, acceptable to ADB, as
necessary to address project specific conditions. Any such changes shall be introduced only through bid or contract
data sheets, or through special conditions of contract, and not by introducing changes in the standard wording of
ADB’s SBDs. Where no relevant standard bidding documents have been issued, the borrower shall use other
internationally recognized standard conditions of contract and contract forms acceptable to ADB." ADB Procurement
Procedures (2013, as amended from time to time).
33
requirements for classrooms, laboratories, design brief, schedule of areas, and plinth area
estimate, thereby contributing towards the TOR for the construction contracts. It is estimated that
establishment of each ASTI will cost around $6 million and the total estimate will be around $38
million for the six ASTIs.
66. Performance-based contracts with mutually agreed time-bound milestones will be adapted
to enhance the delivery of outputs, thereby improving value for money. Performance-based
contracts can also be adapted for OSDA PMU core team.
67. All advance contracting and retroactive financing will be undertaken in conformity with
ADB’s Procurement Guidelines (2015, as amended from time to time)23 and ADB’s Guidelines on
the Use of Consultants (2013, as amended from time to time).24 The issuance of invitations to bid
under advance contracting and retroactive financing will be subject to ADB approval. The GOO,
SDTED, and OSDA have been advised that approval of advance contracting and retroactive
financing does not commit ADB to finance the project.
68. Preparatory work has been initiated by the project preparatory TA and individual
consultants taken on board, in order for the first batch of civil works contracts and equipment
procurement contracts to be bid out by July 2016. This is to ensure that advance actions facilitate
smooth procurement and implementation by the time the loan becomes effective. All other
procurement activities will be handled by the OSDA after adequate capacity building training by
the PMC and the PPTA consultants.
69. All procurement to be financed under the loan will be carried out in accordance with ADB's
Procurement Guidelines (2015, as amended from time to time).
70. An 18-month procurement plan indicating threshold and review procedures, goods, works,
and consulting service contract packages and national competitive bidding guidelines is in Section
C.
C. Procurement Plan
Basic Data
Project Name:Odisha Skill Development Project
Project Number: 46462-003 Approval Number: Not yet available
Country: India Executing Agency:Skill Development and Technical
Education Department(SDTED)
Project Procurement Classification: Implementing Agency: Odisha Skill Development
Project Procurement Risk: Low Authority (OSDA)
Project Financing Amount: USD162 million Project Closing Date: 31 December 2022
ADB Financing: US$ 102 million
GOO Financing: US$ 60 million
Date of First Procurement Plan: June 2015 Date of This Procurement Plan: 10 April 2017
Project Procurement Thresholds. Except as the Asian Development Bank (ADB) may
otherwise agree, the following process thresholds shall apply to procurement of goods and works:
ADB prior or post review. Except as ADB may otherwise agree, the following prior or post review
requirements apply to the various procurement and consultant recruitment methods used for the
project:
Goods and works contracts estimated to cost more than US$1 million. The following table
lists goods and works contracts for which procurement activity is either ongoing or expected to
commence within the next 18 months:
Pre-
Contract Advertisement
Procurement qualification
General Description Value Date Comments
Method of Bidders
($ Million) (quarter/ year)
(y/n)
Construction of 6 37.89 NCB works No Q3/2016 One single
ASTI located at package for
Rourkela, engaging a large
Bhubaneswar, experienced
Jharsuguda, contractor
Titlagarh, Jeypore (ADB financing)
and Rourkela.
Lab equipment for 8 24.16 NCB Goods No Q3/2017 Packages will be
ASTIs organized by
manufacturer and
in three phases for
ASTIs (ADB
financing)
Equipment for 2.06 NCB Goods No Q1/2018 (ADB financing)
technology-enabled
learning
ADB = Asian Development Bank, ASTI = advanced skills training institute, NCB = national competitive bidding.
Source: Asian Development Bank.
35
Consulting services contracts estimated to cost more than US$100,000. The following table
lists consulting services contracts for which procurement activity is either ongoing or expected to
commence within the next 18 months:
Goods and consulting services contracts estimated to cost less than US$100,000. The
following table lists consulting services contracts for which procurement activity is either ongoing
or expected to commence within the next 18 months:
Contract
General Number of Procurement/
Value Comments
Description contracts Recruitment Method
($ million)
Pool of individual 2.62 20-25 ICS/International/ Includes PMU
consultants National core team
Goods 0.20 4 Shopping ADB Loan
ADB = Asian Development Bank, ICS = individual consultants selection.
The following table provides an indicative list of all procurement (goods, works, and consulting
services) over the life of the project. Contracts financed by the Borrower and others should also
be indicated, with an appropriate notation in the comments section.
36
Estimated Estimated
General Recruitment Type of
Contract Value number of Comments
Description Method Proposal
($ million) contracts
Project 6.60 1 QCBS FTP ADB ($3.64
management million) and GOO
consultants ($2.96 million)
financing
b. Government financing
c. ASTI operators
Estimated Estimated
General Procurement
Contract Value* number of Comments
Description Method
contracts
ASTI operators NA 6 National OSDP will provide
(Model A) building and equipment
ASTI operators NA 2 National OSDP will provide
(Model B) equipment
ASTI = advanced skills training institute, NA = not applicable, OSDP = Odisha Skill Development Project.
*These contracts will not include any specific value; see para 62.;
71. The summary draft TORs are in Appendix 4. The TORs for the chief executive officer and
general managers for the OSDA are in Appendix 5. The TOR for the project management
consultants are in Appendix 6.
VII. SAFEGUARDS
72. Environment. The loan is categorized B for environment, based on the environmental
investigations of currently known temporary and permanent project sites for six ASTIs proposed
at Bhubaneshwar, Rourkela, Jharsugada, Titlagarh, Behrampur, and Jeypore; the extension
center at Cuttack; and considering the scale, nature, and type of the works proposed. The initial
environmental examination (IEE) reports, including environmental management plan (EMP) and
environmental assessment review framework (for sites of two ASTIs not yet identified), have been
prepared and disclosed on ADB website in accordance with ADB’s SPS (2009). The environment
impacts caused by the proposed works were assessed to be largely construction-related,
temporary, site-specific, and reversible in nature. The most significant impacts on air, noise and
water will likely result from building construction activities within the existing premises. Adequate
mitigation measures for such impacts are included in the EMPs with requisite budget, and these
would be incorporated in the bid and contract documents. The site specific EMPs will be
developed during preparation of detailed design of ASTIs by the contractors, and included in the
contracts. The implementation of the EMP, as well as environmental safeguard compliance, will
be reported to ADB as part of the semiannual monitoring reports, and will be disclosed on the
ADB website. All complaints from affected people will be addressed through a dedicated
grievance redress mechanism. The capacity of the executing agency in environmental
management and monitoring requires strengthening and will be improved through consultant
support and training, including hiring a qualified environmental specialist on full-time basis to work
in the OSDA until the closure of the loan. The consultations on environmental impacts have been
undertaken in the project areas during project preparation, and further consultations with
stakeholders will occur during implementation.
73. Involuntary resettlement. The project will have no land acquisition and resettlement
impacts and is category C for involuntary resettlement. Project components or subprojects which
would trigger the involuntary resettlement safeguards of the ADB’s SPS are not eligible for funding
under the project. The executing and implementing agencies will carry out appropriate due
diligence to ensure that none of the proposed components and subprojects would cause physical
and/or economic displacement, including permanent or temporary impacts on non-titled land
users. For each subproject and component, concise due diligence reports with documentary
evidence, including maps and photographs, will be prepared to demonstrate the absence of
38
74. Indigenous peoples. The loan is category B for indigenous peoples, as Odisha’s
population comprises 23% of scheduled tribes and 16% of scheduled castes. An indigenous
people plan (IPP) has been prepared to ensure access to the skill development components of
the project, both at the ASTI and ITI levels, for all indigenous groups in the state, so that they can
benefit equitably and in a culturally appropriate manner from the positive effects of the project.
The executing and implementing agencies will prepare 6-monthly social safeguards monitoring
reports on the IPP implementation, reflecting all actions undertaken to ensure the accessibility of
the project to indigenous people groups and the status of indigenous people enrollment and
placement.
75. The OSDA will be the main implementing agency for the OSDP. It will be responsible for
ensuring the implementation of gender and social inclusion activities set out in the Gender
Equality and Social Inclusion (GESI) Action Plan (see Table 15 below) with support from a full-
time GESI consultant based at OSDA. The GESI action plan will include a range of community
mobilization and awareness raising activities focused on skill development and employment
generation targeted at women and vulnerable groups. Based on the identified need for iterative
consultations with stakeholders and beneficiaries, the GESI action plan will include participatory
development processes, which will involve target groups (males and females) to play a
meaningful role in the planning, implementation, and monitoring of all project activities. More
specifically, this will include information generation/sharing and consultation of relevant
stakeholders and communities, with focus on ensuring equitable representation and participation
of women and youth—along with emphasis on scheduled castes, schedule tribes, and other
backward classes—in all topics related to access to skill development and job opportunities.25
77. The project will target women and men from poor and low-income households, tribal
populations through the expansion of quality skill development services. A key focus of the GESI
action plan would be to promote social leadership and decision-making amongst women,
particularly in relation to skill development and employment. Special attention will be paid to the
collection of disaggregated data by sex, caste, and ethnicity. Regular monitoring of the GESI
25 Odisha has a total of 62 distinct tribes. The term "scheduled tribes" refers to specific indigenous peoples whose
status is acknowledged to some formal degree by national legislation: 13 out of these 62 tribes are known as
"Particularly Vulnerable Tribal Groups." Officially known as "tribals" or "Adivasi," they constitute 22.9% of the state's
total population, compared to the national average of 8.6%. Scheduled caste population is 17.1%, compared to the
national average of 16.6%. (Source: Population Census 2011.) In Odisha, Government Order on reservations in
educational institutions dated 29 April 2015.
39
action plan will be done and it will be updated, which will be included in quarterly project progress
reports sent to the ADB.
78. The SDTED and the OSDA will ensure that bidding and contract documents include
specific provisions requiring the government to require contractors to comply with: (i) all applicable
labor laws and core labor standards on: (a) prohibition of child labor as defined in national
legislation for construction and maintenance activities; (b) equal pay for equal work of equal value
regardless of gender, ethnicity, or caste; and (c) elimination of forced labor; and (ii) the
requirement to disseminate information on sexually transmitted diseases including HIV to
employees and local communities surrounding the project sites. These will be monitored as part
of the project’s safeguards and quarterly reporting requirements.
40
79. Based on the program design adopted for the OSDP and its proposed outputs, outcomes,
and impact, the following design and monitoring framework (DMF) has been developed to enable
meaningful measurement and monitoring of the project’s performance.
Outputs By 2022:
1. Equitable 1a. 195,000 people trained in the 1a–1d. OSDA Motivation to
access to priority sectors (25% women; MIS, DTET undertake skills
market- 30% from disadvantaged groups;c database, and training among youth
responsive and 3% people with disabilities) third-party may be constrained
skills monitoring report due to uncertain job
development 1b. 70% of OSDP-supported trainees placement
programs employed within 6 months of opportunities
increased training completion
Data Sources
Performance Indicators with and Reporting
Results Chain Targets and Baselinesb Mechanisms Risks
1.2 Contract building contractors to construct six ASTIs for which supervision support will be provided
by the project management consultant.
1.3 Establish hub-and-spoke arrangements with eight ASTIs as hubs and 30 government ITIs as spokes.
1.4 Establish mechanisms to mobilize the target youth to train 195,000 trainees, including women and
disadvantaged groups.
1.5 Establish a system of RPL.
1.6 Mobilize the private sector and nongovernment organizations to reach remote locations and
unserved blocks of Odisha.
2. Quality and relevance of skills development programs improved
2.1 Establish a robust quality assurance system including a quality assurance manual to implement
OSDP-supported training programs.
2.2 Establish a pool of master trainers and assessors, and initiate a training program for trainers in
partnership with national and international institutions.
2.3 Create an industry advisory committee comprising representatives from each priority sector to
promote market-responsive and quality training programs.
2.4 Develop baseline indicators for the eight ASTIs and 30 ITIs and establish mechanisms to monitor
progress against identified quality indicators.
2.5 Establish a platform and guidelines to promote technology-enabled teaching and learning for all
OSDP-supported training programs.
3. Skills ecosystem strengthened
3.1 Strengthen OSDA, the SDTED, and the DTET with dedicated management support to enable them
to function as the nodal agencies for skills development activities.
3.2 Establish partnerships between OSDA and international and national knowledge institutions and
other government departments.
3.3 Strengthen the web-based skills registry system, skills database, skills inventory, and placement
system.
3.4 Operationalize career counseling and placement centers in the eight ASTIs and 30 ITIs and link them
with a web-based skills exchange.
3.5 Engage a specialized institution to work with the ASTIs, ITIs, and skills development centers to pilot
self-employment training for 5,000 youth.
4. Institutional capacity strengthened
4.1 Fully operationalize OSDA with an industry leader heading the executive committee and a high-
quality PMU team headed by a chief executive officer.
4.2 Enhance the OSDA PMU’s capacity for due diligence, project management, quality assurance,
partnerships, and performance monitoring.
4.3 Establish a robust M&E system, including a real-time trainee tracking system.
4.4 Disseminate findings from selected studies (e.g., skill-gap analyses and tracer studies).
4.5 Conduct third-party assessment of progress made by different institutions.
Inputs
ADB: $102,000,000
Government: $60,000,000
Technical Assistance (JFPR): $2,000,000
Assumptions for Partner Financing
Not applicable.
ADB = Asian Development Bank, ASTI = advanced skills training institute, DTET = Directorate of Technical Education
and Training, ITI = industrial training institute, JFPR = Japan Fund for Poverty Reduction, M&E = monitoring and
evaluation, MIS = management information system, NSQF = National Skills Qualification Framework, NSS = national
sample survey, OSDA = Odisha Skill Development Authority, OSDP = Odisha Skill Development Project, PMU = project
management unit, RPL = recognition of prior learning, SDTED = Skill Development and Technical Education
Department.
a Government of India, Ministry of Skill Development and Entrepreneurship. 2015. National Policy for Skill
Source: ADB.
45
B. Monitoring
80. Project performance monitoring. The OSDA, with the support of the PMCs, will be
responsible for monitoring the implementation and performance of the OSDP, and for reporting
and documenting the results achieved at various stages of the project. OSDA will also be
responsible for conducting targeted internal and independent studies, and disseminating the
findings to the stakeholders. OSDA will develop periodic monitoring reports (monthly, quarterly,
and annual) as required, which will include progress in implementation and monitoring activities,
the results on the performance indicators (input, process, output, and outcomes), and
identification of implementation issues and other challenges.
81. ADB will field two review missions each year. One review will discuss the progress in the
performance of OSDP, based on the periodic progress reports submitted by the OSDA. These
will specify the physical progress of different outputs, usage of funds, and implementation
challenges and possible solutions, including assessment of whether the outputs are leading to
the desired outcomes. Subsequent to the mission, the annual implementation plan and budget
will be approved by the PSC. The second review will focus on implementation arrangements and
project performance under various outputs of the OSDP. Field visits will be undertaken as
required to review progress in project activities (including civil works and use of equipment) and
to ascertain the stakeholder response. The annual implementation plan, including detailed
budgeted work plan and procurement plan for the following year, will also be discussed and
finalized during this mission.
82. Compliance monitoring. The status of compliance to project design, including actions
taken to comply with the loan covenants/assurances will be reported by the OSDA during the
review missions. Based on the understanding reached during these missions, status will be
updated in the ADB's project performance reporting system. The monitoring mechanism will
include reporting by the OSDA for review and verification during review missions and sample field
level monitoring and evaluation study if required.
placement). Therefore, the data captured in the reports will be disaggregated by the various
socially disadvantaged groups and gender. Consolidated monitoring reports will be shared with
ADB. The PMC will include a full-time gender and social development specialist for this purpose
who will conduct sensitization/training workshops besides monitoring and reporting on targets and
achievements set out in the GESI action plan. The specialist will also support the project staff in
conducting community-level consultations focusing on understanding and safeguarding the rights
and needs of indigenous peoples.
86. Gender and social dimensions monitoring. The OSDA will implement and monitor the
activities under the GESI action plan with support from a PMC. The OSDA will be responsible for
monitoring the GESI action plan and will submit periodic (quarterly) reports which will capture
progress achieved against activities and indicators outlined in the GESI action plan. A format for
GESI action plan monitoring and reporting is included in Appendix 8.
C. Evaluation
87. The PMC shall conduct the baseline study for establishing (or verifying) the baseline
dataset for all the key performance indicators identified in the DMF during the first year of project
implementation, which will be critical for monitoring the progress and impact of the project.
88. The midterm review is proposed to be conducted during the third year (2019) of the OSDP
implementation. During the midterm review, the progress on the overall results, project
implementation, and the design of the different project components will be reviewed. An
independent agency will be engaged under the loan to undertake monitoring and evaluation
(including tracer studies) to capture the critical data against performance indicators (including
post-tracking of the beneficiaries under the OSDP), and to analyze and prepare case studies and
reports. These will also inform the review process by providing evidence on the performance of
the project in terms of achieving the desired outputs and outcomes.
D. Reporting
89. The OSDA with the support of PMC will provide ADB with (i) quarterly progress reports in
a format consistent with ADB's project performance reporting system; (ii) consolidated annual
reports including (a) progress achieved against the targets set under outputs, outcomes, and
impacts based on the indicators identified in the DMF; (b) key implementation challenges and
resolutions; (c) updated procurement plan to be agreed with ADB; (d) updated implementation
plan and roadmap for the next 12 months; (e) compliance with loan covenants/ assurance; and
(iii) other requirements as appropriate.
90. The following table shows the reporting requirements after the start of the project:
47
91. A consultation and participation plan for the duration of the project will be prepared.
Information flows will focus on (i) sharing project information (scope and progress) among the
decision makers, responsible agencies, consultants and contractors; (ii) explain the project and
resolve concerns, if any, raised by stakeholders; and (iii) involve beneficiaries in field-level
implementation and monitoring activities. The consultation and participation plan will provide
information on (i) the intended benefits and limitations of the project; (ii) who is responsible to
ensure that the actions and strategy are implemented; and (iii) what resources are required to
implement the plan and strategy. The PMU will develop a stakeholder communication strategy as
an integral part of the project administration manual (PAM), describing messages to be
communicated, means of communication, and resource required.
X. ANTICORRUPTION POLICY
92. ADB reserves the right to investigate, directly or through its agents, any violations of the
Anticorruption Policy relating to the project.27 All contracts financed by ADB shall include
provisions specifying the right of ADB to audit and examine the records and accounts of the
executing agency and all project contractors, suppliers, consultants and other service providers.
Individuals/entities on ADB’s anticorruption debarment list are ineligible to participate in ADB-
financed activity and may not be awarded any contracts under the project.28
93. The government of Odisha, SDTED, OSDA and other supporting agencies are advised of
ADB’s Anticorruption Policy (1998, as amended to date). Consistent with its commitment to good
governance, accountability and transparency, implementation of the project shall adhere to ADB’s
Anticorruption Policy. ADB reserves the right to review and examine, directly or through its agents,
any alleged corrupt, fraudulent, collusive, or coercive practices relating to the project. In this
regard, investigation of government officials, if any, would be requested by ADB to be undertaken
by the government.
94. To support these efforts, relevant provisions of ADB’s Anticorruption Policy are included
in the loan regulations and the bidding documents. In particular, all contracts financed by ADB
shall include provisions specifying the right of ADB to audit and examine the records and accounts
of the states and implementing agencies and all contractors, suppliers, consultants, and other
service providers as they relate to the project. Individuals/entities on ADB’s anticorruption
debarment list are ineligible to participate in ADB-financed activity and may not be awarded any
contract under the project.29
95. ADB's Anticorruption Policy designates the Office of Anticorruption and Integrity as the
point of contact to report allegations of fraud or corruption among ADB-financed projects or its
staff. The Office of Anticorruption and Integrity is responsible for all matters related to allegations
of fraud and corruption. For a more detailed explanation refer to the Anticorruption Policy and
Procedures. Anyone coming across evidence of corruption associated with the project may
contact the Anticorruption Unit by telephone, facsimile, mail, or email at the following
numbers/addresses:
96. People who are, or may in the future be, adversely affected by the project may submit
complaints to ADB’s Accountability Mechanism. The Accountability Mechanism provides an
independent forum and process whereby people adversely affected by ADB-assisted projects can
voice, and seek a resolution of their problems, as well as report alleged violations of ADB’s
operational policies and procedures. Before submitting a complaint to the Accountability
Mechanism, affected people should make a good faith effort to solve their problems by working
with the concerned ADB operations department. Only after doing that, and if they are still
dissatisfied, should they approach the Accountability Mechanism.30
97. All revisions/updates during the course of implementation should be retained in this
Section to provide a chronological history of changes to implemented arrangements recorded in
the PAM, including revision to contract awards and disbursement s-curves.
50 Appendix 1
1. Impact. The overall impact of the project is reduced unemployment and underemployment
rates for female and male youth (aged 15–34) by 2025, aligned with the National Policy for Skill
Development and Entrepreneurship, 2015.
2. Outcome. The outcome of the project is skills and employment increased in priority
sectors for the working-age population. This will be measured by the following indicators:
(i) Proportion of youth aged 15–34 with formal vocational training increased; and
(ii) Proportion of the working-age population employed in the manufacturing sector.
4. The Government of Odisha (GOO) has set a vision for the state to skill 1 million persons
in the next 5 years. Of this target, OSDP will skill around 195,000 persons in 5 years, which is
20% of the government’s target.
5. A key focus of this sub-output is to establish eight ASTIs as hubs and to strengthen 30
government industrial training institutes (ITIs), one per district, as spokes or model ITIs under a
hub-and-spoke model to train 170,000 (120,000 by the ASTIs and 50,000 by the ITIs) in 12 priority
sectors and trades, ranging from 2 to 7 levels in the National Skill Qualification Framework
(NSQF).
6. There is a huge capacity gap in Odisha when it comes to training 170,000 persons in
employability skills. This calls for establishment of new skills training capacities, either by the
government on its own or in partnership with the private sector. The Odisha Skill Development
Authority (OSDA) seeks to meet this skilling target through establishment of a blended model of
greenfield and brownfield capacities.
(i) OSDA would establish eight ASTIs across Odisha: six ASTIs under Model A in
Bhubaneshwar, Berhampur, Jharsuguda, Rourkela, Titlagarh and Jeypore as
shown on the map of Odisha in Annex 1. The two ASTIs under Model B could be
in any location in Odisha. Each ASTI will specialize in one or two priority sectors.
The training programs in the priority sectors will be comprehensive while the
training in non-priority sectors will provide only selectively based on emerging
demand. The sectors to be provided in each hub ASTI are in Annex 1.
(ii) To increase the access further and to optimize the usage of existing training
infrastructure, these ASTIs would act as hubs to 30 existing government ITIs, one
Appendix 1 51
in each district of Odisha. OSDA would upgrade the spoke ITIs to enable them to
play their role as spokes in the hub and spoke model. This network of eight hub
ASTIs and 30 spoke ITIs would be a central feature of OSDP’s objective for
increased equitable access. The list of hub ASTIs and spoke ITIs is in Annex 2.
(i) At the hub level, there will be two types of ASTIs: (i) under Model A, the GOO will
provide land, new buildings and equipment, and engage the operators
competitively, with emphasis on international collaboration; and (ii) under Model
B, the GOO will provide equipment, and engage the operators who will provide
land and buildings in order to optimize existing facilities. For the six Model A ASTIs,
the government has already identified the Directorate of Technical Education and
Training (DTET) land for five ASTIs and GOO land for one ASTI. The construction
of the six ASTI facilities is expected to be completed during the first 2 years of the
project period. While the ASTIs are being constructed, the ASTI operators will be
provided temporary facilities in existing DTET facilities (mostly in existing
government ITI or polytechnics premises). All the temporary facilities have already
been identified. The Skill Development and Technical Education Department
(SDTED) will provide usage rights to the newly established OSDA. For the two
ASTIs under Model B, the operators are expected to start their training programs
in a phased way from year 1 in their identified facilities. Each ASTI will train 15,000
trainees in 5years.
(ii) The project will also support 30 government spoke ITIs with hostel facilities in
existing unencumbered land owned by each of the 30 ITIs and equipment for
identified trades in priority sectors linked to emerging demand.
(iii) The ASTIs will serve as resource institutions to help the spoke ITIs to run training
programs. The ASTIs will serve as resource institutions to help the spoke ITIs to
run the training programs.
8. The ASTIs would benchmark quality skills training institutions offering market-responsive
employability skills training across learner segments outside and within the formal education
system. Each ASTI would skill a minimum average of 15,000 trainees in 5 years. The eight ASTIs
would train 120,000 persons in 5 years. The ASTIs will be:
(i) Finishing schools. ASTIs would provide the last mile technical, communication
and soft skills that would create competent workforce in line with industry
requirements. It would provide job opportunities to trainees entering the world of
work and enhance the skills/competence of those already working.
(ii) Production centers. Odisha’s low level of industrial development offers less
opportunity for apprenticeships, on-the-job training within the state. Hence, a
training cum production center model for many of the trades within ASTI would
support effective training while creating revenue opportunities for the ASTI.
(iii) Resource centers. ASTIs would also serve as resource centers for public and
private ITIs, skill development centers (SDCs), polytechnics, engineering, and
general education colleges in a hub-and-spoke model.
52 Appendix 1
9. ASTIs will be established in new training building infrastructure with hostels and residential
facilities for staff and equipped with training equipment and machinery used in industry. They will
run training of trainer programs for trainers and assessors, and leadership programs for principals
and management staff of public and private ITIs, polytechnics, and SDCs. Each ASTI will be a
Center for Enhanced Learning for one sector, while offering training across multiple sectors.
(i) Offer higher end training programs in manufacturing and service sectors for
entry level placements and skill upgradation.
(iii) Offer training programs for trainers in the catchment area of respective
ITIs/ITCs/SDCs, polytechnics, engineering colleges.
(v) Support the OSDA in achieving its objectives through mentoring services to the
spokes.
11. The ASTI would provide the following input support services to spokes, which would be
paid for by OSDA, which would enable the creation of a high quality skills training ecosystem. The
responsibility to ensure that the ASTI services are taken advantage of remains with OSDA and
spoke ITIs:
(i) Capacitate ITIs to run medium duration training programs for 'internal revenue
generation'.
(ii) Conduct of Training &Certification Program for Trainers for ITIs, SDCs,
polytechnics, engineering colleges, and general colleges in collaboration with
leading international and national agencies.
(iii) Monitor the quality of training processes and outputs in the spokes through periodic
audits.
(iv) Support placements for the trainees trained in the spokes.
12. The eight ASTIs with their spoke ITIs forming eight ASTI clusters have been shown in the
table below. The cluster map is in Annex.
Appendix 1 53
13. Each of the eight spoke ITI clusters on average would train minimum 6,250 persons over
a period of 5 years. Thus, a total minimum of 50,000 persons are expected to be trained in the
eight spoke ITI clusters.
14. Based on the above, the proposed breakdown of numbers to be skilled across the 5 years
by OSDA are estimated and given in the table below:
15. While the direct impact of the OSDA trainings is limited to 200,000 persons over the next
5 years, the qualitative aspects like the robust OSDA quality assurance system is expected to
impact other training institutions that would be willing to adopt the OSDA training systems. Thus,
there would be increased qualitative access across the education and training systems in the
state of Odisha through this demonstrable model of OSDA network of institutions.
2. Sub-Output 1.2: Equitable access across learner, gender, and social groups
16. Of the total training target, the OSDP targets to train 25% female candidates, 30% from
disadvantaged groups (scheduled castes/scheduled tribes/other backward classes) and 3% for
persons with disability (PWD).
17. OSDP will train 200,000 persons in 5 years of project duration across all learner segments
with 70% placement for entry level skills training. The proposed breakdown of numbers to be
trained across the learner groups is estimated in the table below.
18. The first dimension of equitable access is that the OSDA would add 75,0001 newly skilled
persons to the pool of skilled population, while upgrading the skills of 125,0002 persons to enable
them to achieve competency levels to get jobs or grow in their careers.
19. The second dimension of equitable access is in terms of increasing the number of female
trainees. The manufacturing sector is biased towards males,3 except in the apparel sector.
Woman participation is higher in service sector trades of healthcare, hospitality, information
technology/information technology-enabled services, financial services, retail, beauty and skin
care, etc. OSDP would seek to ensure equitable access to skilling with respect to opportunities
for women keeping in mind the cultural sensitivities and aspirations. The OSDP would seek to
ensure that about 25% of the skilled candidates are women based on a very low current baseline.
The project will strive to achieve 30% if feasible in order to remain in line with the state
government’s policy on women.
20. The third dimension of equitable access is in terms of disadvantaged social groups. The
various social groups like scheduled castes, scheduled tribes are the low income groups in the
state, typically in the below poverty line category. The training programs would target this group
to match the salary levels offered by technician level jobs with the willingness of these social
groups to pursue these jobs to escape poverty. The challenge is to reach to these needy groups.
Scheduled castes constitute 17% and scheduled tribes are 23% of the total population of the
state. OSDP would seek to ensure that share of the scheduled castes/scheduled tribes population
skilled under the project is at least 30% of the total training target.
21. Another group of focus would be persons with disability. While 2.7% of Odisha’s comprise
of PWDs, the state government has reserved 3% of its jobs in the government sector for PWDs.
In line with this practice, OSDP would include 3% from the PWDs in the total training target of
200,000.
22. The proposed breakdown by sex and social groups is provided in the table below:
23. The proposed breakdown of 170,000 persons to be trained across the industry sectors in
wage employment would be detailed based on the business plans for each of the eight ASTIs.
However, the proposed share of the three job locations would be as below:
(i) Basic Programs, training students to meet National Council for Vocational
Training/National Skill Qualification Framework (NSQF)/National Occupation
Standards (NOS) competency levels for domestic market.
(iii) Advanced programs training students to competency levels required for overseas
placements.
25. The unorganized sector employs 93% of the total labor force in the country. However, the
unorganized sector is not the employer of choice for youth skilled under the various initiatives.
OSDP therefore seeks to increase access to quality skills training to existing workers in the
unorganized sector. RPL is of particular relevance to Odisha where large proportions of workers
do not have formal qualifications in sectors where formal recognition of skills is deemed to be of
value to employers and employees. The OSDP RPL initiative will train and certify 25,000 persons
in 5 years. This number would be scaled up once the RPL model is established.
26. RPL will serve as an effective tool for addressing multiple goals for the state of Odisha.
These include:
(i) Bringing in excluded groups (93% of Odisha economy is in the informal sector)
back into learning and improve their job prospects, motivation, and self-esteem.
(ii) Creating a skills inventory for the state that would enable targeting of training and
development services to the right segments in the bid to create a skilled and
productive workforce.
(iii) Benefiting the employer of workers from Odisha as RPL is based on competency
levels that employers seek in a worker for the costs they incur on them in terms of
wages. A structured way of assessment of employee competencies would
encourage employers to look at productivity within their organizations and
investments in employee training in a scientific way.
(iv) Creating a positive learning culture in the state in the long term. By offering formal
recognition and reward for non-traditional learning, RPL can help encourage a
culture in which learning is seen as attainable and desirable for all.
27. In order to deliver an effective RPL program, OSDP would do the following:
(i) Adhere to the NSQF for credits, qualifications, and occupational standards for
RPL.
(ii) Use the spoke ITI infrastructure and geographical outreach for conducting bridge
programs and using as test centers for RPL certifications.
Appendix 1 57
(iii) Implement robust quality assurance mechanisms for RPL in the form of use of
appropriate assessment tools for certifying competency levels, deployment of
trained and certified assessors, and credible assessment management systems.
(iv) Clearly communicate RPL benefits to stakeholders including the trainee, employer,
educational institutions, community, etc.
(v) Adopt a collaborative approach with employers and community organizations for
delivery of RPL. Given the general apathy of Indian employers to any kind of skill
development program, much more emphasis will be placed in Odisha on
community-based routes than on employer-based routes.
(vi) Be flexible in delivery of RPL in a variety of different settings and different time
schedules. It would enhance RPL program accessibility by taking assessments to
where service users work and where they live.
(vii) Provide strong support for learners, addressing the language issues with
guarantees of reliability, transparency, and consistency.
(viii) Work towards management of costs, time, and resource constraints while
delivering RPL.
(ix) Make available public funds, as evidence indicates that only a small proportion of
RPL systems can be described as coming about as a result of demand from
learners or employers. Most have tended to be supply-driven, developed, and
established at regional or sectoral levels.
(x) Position RPL within a broader program of worker support services like access to
social protection, issue of identity cards, opening of bank accounts, etc. By
integrating RPL with other worker support activities, it is possible to access larger
number of potential participants. The integrated program should seek to clearly
map out the links between these services, and communicate these links in
appropriate ways to program staff, and to service users.
(xi) Explore cheaper, scalable models, potentially using technology such as video
recordings of workers on-site for central evaluation.
(xii) Draw on ongoing initiatives in RPL and build on emerging good practices.
28. The potential sectors where RPL would be conducted include the following: (i) mining and
metals, (ii) marine – shipping ports, (iii) automotive service, (iv) hospitality and tourism, (v) health
care, (vi) production, and (vii) construction.
29. The RPL training mandates would be bided out to agencies with technical competencies.
The ASTIs and spoke ITIs could be potential bidders for the mandate along with other agencies.
The Japan Fund for Poverty Reduction technical assistance will provide initial support to develop
a mechanism to initiate a robust RPL program.
58 Appendix 1
30. One of the key challenges of skills training in Odisha is the low to poor quality. The OSDP
would seek to improve the quality and relevance of the skill development programs through the
following four sub-outputs.
31. The key elements of a robust quality assurance system are as follows:
32. The OSDA network would offer training programs adhering to various competency
standards. The choice of competency standards would depend on the credibility of the standards
and certification with the industry. On successful certification, the entry level trainees should be
able to get jobs or existing workers get increased incomes or other benefits over a period of time.
The three available standards for the OSDA trainees would be:
(i) National standards –NOS of the sector skills councils (SSC) under NSQF and
Modular Employable Scheme Standards of the Directorate General of Training
(DGET).
(ii) Other country national standards for overseas placements – Building and
Construction Authority Standards of Singapore, Australian Qualification Framework
Standards of Australia, Red Seal Standards of Canada, Pearson/City and Guilds of
UK, etc.
33. The NSQF would serve as the base competency standard with 10 levels given the Ministry
of Skill Development and Entrepreneurship’s emphasis on ensuring compliance of all vocational
training programs with NSQF requirements. Of these levels, 2 to 7 will be covered by the OSDP
training programs. Training programs for Levels 2 to 4 would be conducted in the spokes with
some exceptions at the hubs. Levels 4 (only new ones at level 4) to 7 would be conducted in the
ASTI. ASTIs would be registered as vocational training providers with DGET and also affiliate
itself with various SSCs depending on the trades/programs it would offer for training. In addition
to this, it would be accredited to any of the international standards body if the training is being
delivered to those standards. Some possible choice of standards is provided in the table below,
but this would be validated and agreed to by the OSDA.
34. To ensure credibility of assessment and certification systems, OSDA would enter into
memorandum of understanding with internationally recognized agencies to assess and certify the
majority of the 200,000 persons to be trained in 5 years. These agencies would have to register
themselves with SSCs/National Council for Vocational Training/State Council for Vocational
Training and other certification bodies as applicable. These international/national agencies are
Appendix 1 59
expected to bring in their assessment tools and methodologies for conducting the assessment
process.
(i) Assessment and certification services: (a) assessment and dual certification along
with compliance with the SSC requirements for programs with domestic
placements; (b) assessment and certification of programs that train persons to be
placed in those countries where their certification is valid; and (c) assessment
services only for programs that train persons to be placed in those countries where
national certifications are valid.
(iv) Design and support for implementation of quality assurance system of OSDA.
(v) ASTI/spoke ITI baseline audit and annual audits to assess progress and to identify
areas of improvements.
36. OSDP would invest to create a cadre of master trainers of international standards:
(i) 250 trainers over 10–12 sectors would be selected for the master trainer program
in 12 batches. This would include 30 master trainers in large priority sectors and
10–15 master trainers in smaller sectors. The master trainers will be spread over
the ASTIs, ITIs, and in a general pool for all to draw on by paying for their services.
(ii) The Master Trainer Program would be offered by the selected international quality
assurance agency and successful candidates would be certified both by the
international organization and OSDA. It would have training sessions in national
training institute of repute, sessions at one of the partner overseas training
institutes and an attachment program with the relevant industry.
(iii) These 250 master trainers would be responsible for training of trainers and
assessors. There is enormous shortage of qualified trainers and assessors in
Odisha. OSDA would specify the education and experience required of trainers to
be hired for each trade. The training of trainer/assessor program is expected to be
offered to 14,000 persons over the next 5 years. These trainers/assessors would
be either fresh technically qualified persons who want to make training as their
career or existing trainers who want to upgrade their skills. It is important to create
the pool of trainers and assessors in the beginning so that the training and
assessment processes are not unduly affected.
(iv) Some of the master trainers would be part of the OSDA academic team and would
be responsible for academic quality within the OSDA System. Introduction of new
programs/deletion of programs would be possible only with the approval of the
master trainers of the respective sectors.
60 Appendix 1
(i) Develop his/her own session plans based on the program curriculum and duration.
(ii) Detail the training method (classroom training, role play, field visits, lab training,
etc.).
(iii) Conduct the training as per session plan and training methods.
(iv) Detail the assessment method (short answer questions, multiple choice questions,
lab tests with assessment checklists, on-the-job training third-party supervision,
etc.) to be used for the training.
38. While ensuring the right inputs to the skills training process is key to ensuring quality, it is
equally important to monitor the skills training process quality to obtain the desired quality outputs.
For this purpose, a baseline value of key parameters for the eight ASTIs would be established
and a baseline assessment of parameter values would be carried out for the existing ITIs. ASTI
processes and outputs would be benchmarked to the best in class training institutions nationally
and across the world. Similarly, the spoke ITIs would be part of the benchmarking process with
respect to the ASTI programs they would be offering. The spoke ITIs would also be supported by
OSDA for the star rating as devised by the DGET.
39. The benchmarking process would allow assessment of the impact of the project over a 5-
year period. The process quality parameters would include vocational training and administrative
ones. Primary output quality parameter would be number of students certified by third-party
assessments. The secondary output quality parameters would include the number of
placement/jobs that the students get based on this certification or whether a trainee is self-
employed in a reasonable period of time or whether a trainee enrolls for a higher training program.
In case of job placement or upskilling, the average remuneration would also form an important
parameter.
40. There would be a common management information system platform with an enterprise
resource planning platform for the entire training value chain operations—content and program
development, training of trainers, scheduling of training calendar, mobilization, counselling,
admissions, batch commencement, student and trainer attendance, student training,
assessments, certification, placements, tracking, capturing training data, creation of databases,
and data analytics to understand program effectiveness and impact. Network technologies would
be deployed for delivery of hub studio training to spokes.
41. Learning technologies including development of digital content, online content, online
assessment platforms, and learning management systems. Blended training models would be
deployed using technology addressing all dimensions of cost, quality, scale, efficiencies,
customization, flexibility of multiple entries and exits. Self-learning models through mobile, web,
and direct-to-home satellite would be explored and used appropriately.
Appendix 1 61
42. In line with the national priority to consolidate and strengthen the training programs within
a common framework at the state, this output will support the following four sub-outputs:
43. Knowledge partnerships would be crucial to benchmark quality of training and embedding
continuous quality improvement processes in the OSDA training programs. Each priority sector
has a number of credible international and national institutions that the OSDA network would seek
to collaborate. The OSDA management team would be responsible for identifying and developing
partnerships with international and national knowledge institutions. The collaboration would be in
the areas of content and curriculum development, training of trainers, innovative training delivery
models, skills upgradation training, twinning programs, organizing joint conferences and
workshops in India and abroad, etc. A potential list of knowledge partners sector-wise is provided
in the table below.
44. There are various departments in the state government of Odisha that are conducting skill
development as part of their larger schemes. These include departments like agriculture,4 rural
development, social welfare and scheduled caste/scheduled tribe welfare, education,5 information
technology, animal husbandry, fisheries and dairying, industry, urban development and housing,
science and technology, health and family welfare, etc. Inter-government department
4 Krishi Vigyan Kendras have been in the forefront of agriculture extension training.
5 The government education programs of Sarva Shiksha Abhiyan and Rashtriya Madhyamik Shiksha Abhiyan have
huge teacher training budgets.
62 Appendix 1
partnerships would be forged so that many of these training programs could be conducted in the
ASTIs or in the spoke ITIs. These departments would greatly benefit as their institutional
capacities are limited to carry out the targeted skilling objectives for an end-to-end implementation
of the program from social mobilization to employment.
45. The biggest emerging problem in the skills training ecosystem is that of trainee drop-outs;
that is, there are trainees who do not accept job offers after training or quit jobs due to
dissatisfaction of job profile, job environment, or pay scale within the first few months of
placement. All these issues arise from expectation and delivery mismatch across the training
value chain. These issues can be addressed through structured mobilization and counselling, pre-
placement counselling including counselling with parents, and post placement support, with a
focus on better matching of expectations with proper training and follow-up support.
46. Mobilization counselling services are provided in the local language by local counsellor or
on toll-free telephone lines. These include activities like:
(i) Understanding the key factors motivating the trainee to join the training program –
the short-term and long-term career goals of the trainee, current economic
compulsions and responsibilities, minimum salary expectations, and expectations
at the workplace.
(ii) Evaluation of the soft-skills possessed by the trainee at the time of joining (e.g.,
clarity of communication; English-speaking skills; degree of ease with technology);
special requirements or support they would require, especially in the trade they are
likely to choose.
(iii) Sharing of success stories using innovative media channels to boost their
confidence in vocational training, providing a snapshot of the actual work profile to
trainees through videos, giving them a perspective on the life-skills they would
acquire after being trained at the ASTIs or spoke ITIs and its utility for their career
development, connecting prospective trainees to those who have attained
employment across various trades, etc.
48. Post-placement support is critically important in the case of trainees who have to migrate
from their homes to work in far off workplaces. This includes support in the form of linking with
mentors, facilitation desks in the workplace locations, where trainees could seek information and
help in settling down in a new location. Also this desk would enable the tracking of trainees to
study their progress in their new jobs.
Appendix 1 63
49. The OSDP will establish 38 career counselling cum placement centers, one in each of the
30 ITIs and eight ASTIs. These centers would provide mobilization and pre-placement counselling
to the trainees. In addition to this, OSDA would set up seven facilitation desks for post placement
support in Delhi, Bangalore, Mumbai, Pune, Chennai, Hyderabad, Kolkata, Kochi and Surat as
these are the most popular destinations for jobs outside of Odisha. A toll free number would be
provided to each OSDA trainee for post-placement support.
50. A web-based skills exchange portal would be established by OSDA, where job seekers,
skilled youth and those undergoing training in the state of Odisha would post their resumes and
companies across the country and overseas in need of skilled manpower would post their
requirements. In addition to this, the portal would gradually offer all other related services to skills
training like online counselling, online training programs, online assessments, information on
sectors, careers, job profiles, pay range, company profiles support for resume building, etc. It
would also be linked to the National Career Service portal being developed by the Government
of India.
51. The portal would also be used by the local OSDA counsellors in the eight ASTIs and spoke
30 ITIs for information dissemination, registration of candidates who seek information, and also
those who enroll for various training programs. Thus the web portal would also serve as a registry
of candidates who seek information on skilling and those who are undergoing training and those
who have been trained and placed.
52. Odisha being relatively less industrialized and with limited network of small and medium
enterprises, most of the skilled Odisha youth have to migrate outside of the state to other
industrialized states in the country for employment. Migration has a number of social challenges.
An analysis of the retainership levels of Odisha youth in jobs outside the state, post training
reveals that many youth dropout at various points in time within a year leading to an overall low
placement ratio of around 35%.6 Also it is not possible for the organized sector within Odisha and
the country to absorb all the skilled youth. Self-employment would be a key livelihood option that
needs to be encouraged.
(i) Interested youth being skilled in a particular trade and then supported with bank
and market linkages to enable him or her to set up their own business. For
example, youth trained as electricians, plumbers, beauticians, etc. could be
provided with trade kits for delivery of services.
6 World Bank. 2014. World Bank Study of Five Government Ministry Schemes for Skilling. Washington, DC.
64 Appendix 1
54. Based on the strength and context of Odisha, OSDP would initially focus on three sectors
of interest within Odisha state in which youth could be skilled for self-employment:
(i) Food processing. This sector has huge self-employment potential in rural areas,
especially when youth can be clustered together in a self-help group or producer
company format, trained and supported with forward and backward linkages.
(ii) Handicrafts. This sector has huge-self-employment potential for artisan trades,
where unskilled youth can be clustered together in producer company format,
trained under a master trainer (ustaad) and supported with bank and market
linkages.
(iii) Beauty and skin care. This sector also has huge self-employment potential for
women, where unskilled women can be trained and supported with delivery kit and
if required, bank linkages.
55. A number of agencies are active in the space of self-employment including Rural Self-
Employment Training Institutes of the Ministry of Rural Development and National Bank for
Agriculture and Rural Development. OSDA would seek partnership with these agencies and
institutions in designing and executing its self-employment training model. The self-employment
models would be developed in the form of pilots. Bids would be called for agencies willing to take
the responsibility of training 5,000 youth to be entrepreneurs in 5 years.
56. Most of the skill-gaps studies conducted by the National Skill Development Corporation
and other agencies have adopted a top-down approach, wherein, based on projections of sectoral
growth demand for skilled persons has been derived. At the youth level, sample studies have
been conducted to determine their interests and overall estimates of skill-gaps have been carried
out. A more detailed household survey-based census of existing skills, expectations, and
aspirations is being proposed under the OSDP.
57. This skills census would be used to build the skill database or skill inventory for each
district. Based on the district skills census, employment opportunities in the district and outside,
and the available capacities for skilling within the district a district skills plan would be developed
(Please check sentence). This would be done in stages starting with one skills census to be
carried out in one of the districts which would then be replicated once the model is clearly
established.
58. This output focuses on ensuring effective project implementation capacity of concerned
institutions (Skill Development and Technical Education [SDTED], OSDA, and DTET) and will
comprise the following four sub-outputs:
59. An autonomous society, OSDA, has been established to oversee and facilitate the
operation of a network of eight ASTIs and 30 spoke ITIs in a hub-and-spoke model. The bylaws
of the OSDA have been framed to provide it with academic, administrative, and financial
Appendix 1 65
autonomy in its operations. The president of the executive committee of the OSDA would be an
eminent industry leader who would provide it with vision and support the OSDA senior
management team in realizing the vision.
60. The OSDP team at OSDA would be led by a dynamic chief executive officer. It would have
four general managers (projects). All these professionals would be sourced from the marketplace
through open advertisements and a rigorous selection process.
61. The piggybacked capacity development technical assistance grant provided by the Japan
Fund for Poverty Reduction will support the OSDA in selected areas (initial tracer and skill-gaps
studies, social marketing and communication, capacity building of SDTED, OSDA, and DTET,
and in ensuring effective preparation and implementation the proposed project outputs and sub-
outputs as envisaged) to enhance its capacity particularly in the first 2 years.
62. High capital investments is required for establishment of these ASTIs as providing
finishing skills to higher education institutes, especially in the manufacturing sector would mean
investments in high end machinery, training equipment, trainers, content, etc. The private sector’s
willingness to invest in these ASTI would be low as financial viability is low, especially for
manufacturing trades. Therefore, the OSDA will invest in land, new buildings, and equipment to
establish six ASTIs under Model A and provide equipment for the two ASTIs under Model B.
OSDA will engage public or private operators through a competitive process. One operator could
bid for up to two ASTIs. Ensuring operational efficiency is the key to successful operations of the
ASTIs. The OSDA will create an enabling environment for the ASTI operators to operate the
ASTIs effectively.
63. In Model A, the government invests, establishes, and owns the ASTI through OSDA. The
OSDA:
(i) Supports the creation of an efficient ecosystem for skill development through the
adoption of Indian and international standards, content development, creation of
programs, specifications for trainers, training of trainers systems, credible
assessment and certification systems, institute rating systems, etc.
(ii) Funds the capex for ASTI – land, building (stress on environment friendly, cost
effective designs), and equipment.
(iii) Offers the institutes on operate model (management contract) to the private sector
under a service level agreement (SLA).
(iv) Provides space for offering the training programs from a temporary facility fully
equipped until the new construction is completed during the first 2 years.
(i) Brings in the operating team, invests in the working capital and delivers what they
are expected to do under the SLA. This covers the number of persons to be trained,
66 Appendix 1
(ii) Makes the institute sustainable (operational surplus) within a pre-decided number
of years of operation. From the succeeding year onwards, the private player is
expected to provide a percentage of revenues to the OSDA.
(iv) Fees to be charged for the programs to be decided by a fee fixation committee and
in line with the training hourly rates being followed in the country as per the
guidelines of the National Skill Development Agency.
(i) Brings in the land and building and invests in the refurbishment of the building to
match ASTI requirements.
(ii) Brings in the operating team, invests in the working capital, and delivers what they
are expected to do under the SLA. This covers the number of persons to be trained,
placed, international placements, trainers to be trained, outreach programs, quality
rating levels, etc.
(iii) Makes the institute sustainable (operational surplus) within a pre-decided number
of years of operation. From the succeeding year onwards, the private player is
expected to provide a percentage of revenues to the OSDA.
(iv) Free to use any Government of India/Odisha scheme in addition to candidate paid-
for to run the institution.
(v) Fees to be charged for the programs to be decided by a fee fixation committee and
in line with the training hourly rates being followed in the country as per the National
Skill Development Agency guidelines.
(i) Supports the creation of an efficient ecosystem for skill development through the
adoption of Indian and international standards, content development, creation of
programs, specifications for trainers, training of trainers systems, assessment and
certification systems, institute rating systems, etc.
(ii) Funds the capex for training equipment for ASTI and provides it on lease to private
partner.
(iii) Facilitates the use of different government schemes and targeted support for
eligible students against the number of people trained and placed in the first 5
Appendix 1 67
years of operations on a declining basis so that the ASTIs are fully self-reliant by
the end of 5 years.
67. OSDP would invest in establishment of institutional mechanisms for periodic information
gathering on the project progress on a number of pre-decided indicators of progress. These
indicators would form the basis for further analysis, feedback, midcourse corrections. This will
cover the following activities:
(i) Initial skill-gaps analysis, based on current studies leading to the development of
district-wise skill development plan.
(ii) Development of progress indicators for the project and completion of a baseline
study for these indicators.
(iv) Quarterly progress reporting and publication of an annual report on the OSDP
project to show the progress over time against the identified indicators.
(v) Periodic tracer studies conducted and disseminated to demonstrate project impact
on quality of jobs, trainee and employer satisfaction, etc.
68. Based on the above reports the overall strategy, financial management, and procurement
action plan would be reviewed annually, midcourse corrections incorporated and implemented
accordingly.
69. Evidence-based planning, budgeting, and monitoring are keys to the success of the
OSDP. This will require ensuring strengthening the capacity of the key institutions. This will be
done through two approaches:
(i) OSDA will engage project management consultant team through a competitive
process to support the SDTED, OSDA, and DTET to effectively implement the
activities envisaged under the OSDP. The PMC will focus on the following areas.
(ii) Targeted capacity development support to the SDTED, OSDA, and DTET in
carrying out their activities as envisaged in the OSDP design. A firm will be
engaged to analyse the requirements, design a targeted capacity development
program, and run training programs for the concerned officials and management
team in close collaboration with concerned capacity development institutions.
68 Appendix 1
Annex 1: Hub-and-Spoke Clusters Showing Priority Sectors and Trades for Eight ASTI Hubs*
ASTI Rourkela
- Production/Welding
- Automobile Service
- IT
- Electronics & Automation
- Agriculture/Farm Machinery
ASTI Balasore (Preferably)
ASTI Rourkela
- Production/Machining
- Production/Welding
ASTI Jharsuguda - Construction
- Mining - Automobile Service - IT
- IT
- Construction - Automobile
- IT - Electronics & Automation
- Marine/ Shipping
- Agriculture/Farm Machinery
- Electronics
- Production ASTI Balasore
ASTI Angul (Preferably)
- Electronics- &Production/Machining
Automation
ASTI Jharsuguda - Mining
ASTI - Mining
Titlagarh - Construction
- Construction
- IT
- Construction
- Construction - Production- Automobile
- IT
- Production - Agriculture/- Farm Machinery
- Electronics
- Handicraft Marine/ Shipping
- Production Machinery
- Agriculture/Farm ASTI Anugul
- Hospitality - Electronics & Automation
ASTI Bhubaneswar
- Mining
- Electronics/Mechatronics
ASTI Balangir ASTI Berhampur - Construction
- Construction
ASTI Jeypore (Koraput) - Hospitality
- Production
- Healthcare
- Production - Automobile - Agriculture/ Farm Machinery
- Production/Maintenance - Shipping/Marine - Automobile Service
- Handicraft
- Apparel - ESDM - IT
- Agriculture/Farm Machinery
- Construction - Construction
- Hospitality
- IT - IT ASTI Bhubaneswar
- Hospitality
- Electronics/Mechatronics
ASTI Berhampur - Hospitality
*ASTI Simliguda
This indicative (Koraput)
list can be updated to include the latest emerging trades and sectors reflecting the dynamic nature of the labor market.
- Automobile - Healthcare
- Production/Maintenance - Shipping/Marine - Automobile Service
- Apparel - ESDM - IT
- Construction - Construction
- IT - IT
- Hospitality
Appendix 1 69
Annex 2: Hub-and-Spoke Clusters Showing Eight ASTIs and 30 Government Spoke ITIs
ASTI Rourkela
- ITI Rourkela
ASTI Jharsuguda - ITI Barkote
- ITI Hirakud
- ITI Bargarh ASTI RourkelaRourkela
- ITI Rourkela
- ITI Barkote
ASTI Jharsuguda
- ITI Hirakud ASTI Balasore
- ITI Bargarh ASTI Angul (Preferably)
ASTI Titlagarh (Preferably)
- ITI Talcher - ITI Balasore
- ITI Sonpur
- ITI Dhenkanal - ITI Takhatpur
- ITI Naupada
- ITI Barbil - ITI Bhadrak
- ITI Balangir 1
- ITI Boudh - ITI Jajpur
ITI Balangir 2
ASTI Anugul ASTI Balasore
ASTI Balangir
ITI Sonpur - ITI Talcher - ITI Balasore
ASTI-Jeypore - ITI Dhenkanal
- ITI Naupada ASTI Bhubaneswar
- ITI Takhatpur
(Koraput) - ITI Barbil
- ITI Balangir 1 - ITI Cuttack - ITI Bhadrak
- ITI-Bhawanipatna
ITI Balangir 2 - ITI Boudh - ITI Jajpur
Berhampur - ITI Bhubaneshwar
- ITI Raygada
- ITI Puri
- ITI Malkangiri
- ITI (SIPT) Patamundi
- ITI Umarkot
- ITI Nayagarh
- ITI GITI Ambaguda ASTI Berhampur - ITI Jagatisinghpur
ASTI Simliguda - ITI Berhampur
- ITI Phulbani ASTI Bhubaneswar
(Koraput)
- ITI Chandragiri - ITI Cuttack
- ITI Bhawanipatna
- ITI Bhubaneshwar
- ITI Raygada ASTI Berhampur - ITI Puri
- ITI Malkangiri
- ITI Berhampur - ITI Patamundi
- ITI Umarkot
- ITI Phulbani - ITI Nayagarh
- ITI Ambaguda
- ITI Chandragiri - ITI Jagatisinghpur
70 Appendix 2
1. The overall organization structure of the Odisha Skill Development Project (OSDP) is
depicted in the chart below:
SDTED Industry
OSDA
(Executing Agency) Advisory
(Implementing Agency)
Committee
DTETwould be responsible for ITI OSDP Core Team (PMU for OSDP) will
activities under the project be responsible for all ASTI-related
activities and all ITI-related
procurement
ITIs
ASTIs
ASTI = advance skill training institute, CEO = chief executive officer, DTET = Directorate of Technical Education
and Training, ITI = industrial training institute, OSDA = Odisha Skill Development Authority, OSDP = Odisha Skill
Development Project, PMU = project management unit, SDTED = Skill Development and Technical Education
Department.
Source: Asian Development Bank.
2. The Government of Odisha has established the Odisha Skill Development Authority
(OSDA) with financial and administrative autonomy to lead skill development in Odisha. The
Odisha Skill Development Society which was established to implement OSDP and the Odisha
State Employment Mission has been merged with OSDA. A major responsibility of OSDA is
to implement OSDP. The executing agency for the project will be the Government of Odisha
acting through the Skill Development and Technical Education Department (SDTED). A
project management unit (PMU) will be established under the OSDA headed by a chief
executive officer (CEO) and a management team, all recruited competitively and with market-
based remuneration. A project steering committee (PSC) has been established headed by the
chairman of OSDA as president of PSC. Other members of the PSC are the secretary of
SDTED (vice-president), director of Directorate of Technical Education and Training (member)
and CEO, OSDP as member secretary. The PSC can co-opt members from any department
as needed. The PSC will endeavor to encourage all the departments involved in skill
development in the state to utilize the training programs offered by advanced skills training
institutes (ASTIs) and industrial training institutes (ITIs) under the OSDP.
Appendix 2 71
3. The main tasks of the PSC will be to (i) review and endorse annual work program,
targets and budget; (ii) review progress at least once a month, provide guidance, and ratify
key decisions pertaining to project implementation in line with annual work program, targets
and budget and OSDA’s emerging priorities; (iii) remove any implementation bottlenecks to
expedite implementation; and (iv) facilitate synergy and partnerships across relevant
government institutions, departments, and private sector institutions. Delegation of financial
powers has been finalized to facilitate smooth implementation of the project.
4. The PMU will be responsible for (i) establishing and operating the ASTIs; (ii) managing
project funds including but not limited to payments, accounting, auditing, etc.; (iii) contracting
all civil works, consultants, service providers, and other contracts; and (iv) coordinating with
PSC, SDTED, and Directorate of Technical Education and Training for smooth implementation
of the project including environmental and social safeguards-related aspects and submission
of withdrawal claims and all project reports to ADB. The OSDP PMU will also include individual
consultants through the PMC to ensure compliance to accounts, finance, gender, social, and
environmental safeguard requirements under the project. These individual consultants will
coordinate with both the implementing agencies to ensure necessary compliances.
7. The proposed OSDP PMU organization structure is based on the key functions
required to manage the OSDP effectively. A set of key functions in OSDP PMU includes
strategy formulation, mobilization, counselling, training, placement, trainee tracking,
assessment and certification, content development, trainer development, deployment of
educational technologies, sector-wise program management, development of domestic
industry partnerships, development of overseas industry partnerships, arrangements for
seeking corporate social responsibility support, project management, procurement, ongoing
maintenance of assets, etc. The support functions include administration, legal, human
resources, information technology, internal audit, and finance and accounting. The
organizational units have been developed based on clubbing of functions that have close
relationship, outsourcing of some of the functions based on their critical importance and
creation of cross functional teams for functions that require coordination.
72 Appendix 2
8. The OSDA management team organization structure is shown in the figure below:
Installation Specialist Incld. 2 RAs Incld. 2 RAs Research, Monitoring and Evaluation
(Skill Ecosystem Assessment, Tracer
Studies, District Planning, Implementation
Counseling and Placement Centres Gender Safeguards Environment Supervising Engineers and Operations of OSDP Enterprise
(CPCs) at 30 ITIs in each of the 30 districts Specialist Specialist Specialist (ASTIs and non-ASTIs) Resource Planning (ERP) and
Management Information System (MIS)
Consultancies
Other
9. The CEO, along with his team, would be responsible for overall strategic and operational
responsibility for OSDA, execution of its vision and mission, and achievement of its targets and
objectives.
10. Project management would be headed by General Manager Projects and be responsible
for (i) project management of the establishment of the eight ASTI building infrastructure—both
temporary and permanent; (ii) project management of the construction activities in the spoke ITIs;
(iii) project management of the equipment installation and commissioning of the training both in
the ASTI and spoke on ITIs; and (iv) maintenance services to the OSDA on commencement of
operations. The General Manager Projects would be required for a period of not more than 36
months to ensure completion of all civil work projects and equipment installation.
No. of
Role Description Eligibility persons
Equipment vendor Installation, training, and maintenance TOR as part of
support the vendor
ASTI operator Insurance and maintenance of equipment TOR as part of
support the operator
ASTI = advanced skills training institute, GM = general manager, ITI = industrial training institute, PMC = project
management consultant, OSDA = Odisha Skill Development Authority, TOR = terms of reference.
Source: Asian Development Bank.
11. The General Manager Training Operations and Industry Partnerships for liaising with
industry for corporate social responsibility support.
No. of
Role Description Eligibility persons
Implementation of the placement strategy jointly
developed with the industry partnerships team for
persons trained for placements and sub-
strategies for achieving targets for both domestic
and overseas placements
Achievement of domestic and overseas
placement targets
Monitoring of placement plans of each ASTI and
ensuring variances are minimized and targets met
Overall placement strategy for persons trained for
placements and sub-strategies for achieving
targets for domestic placements
Supporting ASTIs in achieving domestic industry
placement targets
Implementation of the OSDA level industry
engagement plans for creating awareness
amongst domestic employers using both
traditional and digital media
Marketing of Skill Upgradation Programs
Overall placement strategy for persons trained for
placements and sub-strategies for achieving
targets for overseas placements
Supporting manager placements in achieving
overseas industry placement targets
Implementation of the OSDA level
industry/government engagement plans for
creating awareness amongst overseas employers
using both traditional and digital media
Analysts Details in TOR 2
to be prepared
Total 4
Support from PMC CSR specialist, SSDM specialist, skill development Included in
specialist, counselling and placement specialist, PMC TOR
M&E specialist
Support from Independent specialist firm to manage self- TOR provided
specialist firm on employment pilot separately
self-employment
ASTI = advanced skills training institute, CSR = corporate social responsibility, GM = general manager, HR = human
resource, M&E = monitoring and evaluation, OSDA = Odisha Skill Development Authority, PMC = project management
consultant, RPL = recognition of prior learning, TOR = terms of reference.
Source: Asian Development Bank.
12. The learning and quality assurance would be headed by a General Manager for Learning
and Quality Assurance and a team comprising Manager Quality Assurance, Manager Content &
Curriculum Development including Educational Technologies and Manager Trainer Development
for the following: (i) designing and implementation of quality assurance framework in the OSDA
training network; (ii) monitoring quality in delivery of training in the OSDA training network; (iii)
development of content to be used for various programs in the OSDA network; (iv) new program
development; (v) trainer development; (vi) forging international and national knowledge
partnerships for the OSDA network; (v) working with the sector skills councils on various technical
aspects of the programs being offered in the OSDA network; and (vi) coordinating with the
76 Appendix 2
General Manger Industry Partnerships and General Manager Trainee & Community Engagement
for effective training.
Manager Trainer Design of trainer development programs along with Details in TOR 1
Development program managers to be prepared
Implementation of trainer development programs
Maintenance of trainer database
Analysts Details in TOR 3
to be prepared
Total 7
Support from PMC Sector specialists (12) Included in PMC
TOR
ASTI = advanced skills training institute, DTH = direct-to-home, GM = general manager, NOS = National Occupational
Standards, OSDA = Odisha Skill Development Authority, PMC = project management consultant, QA = quality
assurance, SSC = sector skills council, TOR = terms of reference.
Source: Asian Development Bank.
Appendix 2 77
13. The team headed by General Manager Finance, Procurement, Administration, Human
Resource and Contract Management is responsible for (i) accounting and financial reporting for
OSDA projects (ASTI and ITIs) and operations; (ii) audit of ASTI finances; (iii) supporting audit of
OSDA finances by statutory auditors; (iv) management of working capital; (v) organization and
support of procurement and disbursement of ADB loan and government funds; (vi) vendor
management, procurement, and contract management for both projects and operations; (vii)
administration including legal functions of OSDA; (viii) human resources management; and (ix) IT
function –networking, enterprise resource planning.
No. of
Role Description Eligibility persons
Analysts Details in TOR to 3
be prepared
Total 8
Support from IT Independent IT support team for hard and TOR provided
team software and networking solutions separately
ASTI = advanced skills training institute, ERP = enterprise resource planning, GM = general manager, HR = human
resource, IT = information technology, OSDA = Odisha Skill Development Authority, TOR = terms of reference,
Source: Asian Development Bank.
14. Delegation of financial powers. For smooth implementation of the project, the following
delegation of powers would be followed:
Above INR10,000,000 and upto Chairman, PSC CEO, OSDP with countersignature of
300,000,000 vice-president, PSC, OSDP
A. Introduction
1. The proposed capacity development technical assistance (TA) has been processed at the
request of the Employment, Technical Education and Training Department, which has been
renamed the Skill Development and Technical Education Department (SDTED) of the
Government of Odisha in support of the Odisha Skill Development Project (OSDP) funded by the
Asian Development Bank (ADB). The SDTED will be the executing agency and ADB will
administer the project, and the TA will accompany the loan. The key results, focus,
implementation arrangements, cost estimates, and areas of expertise of the TA were discussed
with the SDTED and the government counterpart team during the fact-finding mission (1–12 June
2015), and the screening committee of the Department of Economic Affairs cleared the TA in
November 2016. Comments from the Department of Economic Affairs, Ministry of Skill
Development and Entrepreneurship, and SDTED have been incorporated.37
2. The OSDP aims to establish eight new advanced skills training institutes (ASTIs) to
provide higher level skills training in the manufacturing and services sectors through a hub-and-
spoke model, with the eight ASTIs as the hubs and 30 government industrial training institutes
(ITIs) as the spokes. The proposed loan will support skills training in 12 priority sectors and will
include the training of new entrants, upskilling of existing workers, recognition of prior learning
(RPL) for those with experience but without certificates, and piloting self-employment. The loan’s
impact will be reduced unemployment and underemployment rates for female and male youth
(aged 15–34) by 2025. The outcome will be increased skills and employment in priority sectors
for the working-age population. The TA project will provide targeted capacity development support
to ensure the OSDP’s successful implementation and sustainability. It will also support the Odisha
Skill Development Authority (OSDA) in selected areas, particularly during the project’s first 2
years. It will be implemented over 2 years, from July 2017 to June 2019.
3. The TA project will support the following major outputs and related activities.
4. Output 1: Enhanced capacity for market-responsive skills training. The project will:
(i) Engage an institution to analyze sex-disaggregated skill gaps in a test district to
map the aspirations of young people with respect to job availability at the district
level, and demonstrate a credible model for skills-gap analysis to understand
market demand for skilled workers. The analysis will identify potential candidates’
skill needs to ensure that the right candidates are recruited for training from the
outset, and help map the aspirations of the youth with respect to job availability.
Building on existing work, the analysis will also mainstream gender concerns to
understand demand for skilled women and men, identify potential barriers and
opportunities, and guide the OSDA accordingly. The findings will be used to pilot
two activities: (a) identifying short-term training programs and helping to introduce
such programs in the spoke ITI of the identified district, and (b) developing
strategies and programs to encourage more female students to enroll in the spoke
ITI. This district model will be replicated under the loan to support other ITIs.
37 The TA first appeared in the business opportunities section of ADB’s website on 20 June 2014.
80 Appendix 3
(ii) Commission the first-round tracer study to identify how trainees from the OSDP
training programs are getting jobs, and whether they are meeting the expectations
of employers and training programs.
(iii) Identify relevant companies, establish initial mechanisms to enter into partnerships
with these companies, and sign memoranda of understanding with at least 10
companies to help trainees to gain meaningful employment in priority sectors and
trades, as envisaged.
(iv) Building on good practices at the national and state levels, develop guidelines,
manuals, and standards for self-employment and RPL, which will provide a basis
for the loan to implement these initiatives effectively.
(i) Develop a mechanism to establish linkages for quality assurance with national and
international institutions. It will help establish at least five partnerships, one in each
of the five priority sectors with national and international institutions to improve the
quality and relevance of the training programs, including opportunities to improve
courses, training, assessment, and certification. This arrangement will focus
particularly on benchmarking ASTIs and ITIs to grade them against a baseline for
these institutions and monitor progress against agreed indicators.
(ii) Engage experts and establish mechanisms to prepare an initial pool of master
trainers from different institutions (industry, ITIs, and ASTIs). This model will be
scaled up under the loan. The master trainers will play a key role in maintaining
the quality of training programs, including the training of trainers and assessors,
and quality assurance.
(iii) Engage an institution to develop leadership training programs and provide the first
round of training to principals and deputy principals of ITIs and other relevant
institutions.
(i) Engage an information technology and monitoring team to support and guide the
establishment of a digital infrastructure for project implementation, technology-
enabled learning and employment, and counseling and post-placement assistance
for trainees. The experts will help procure and customize a real-time trainee
tracking and monitoring system by adopting the monitoring and evaluation (M&E)
framework developed by the National Skill Development Agency to undertake a
third-party evaluation of skills development schemes at the state level. The experts
will also develop an M&E manual that will provide a basis for operationalizing a
comprehensive M&E system.
(ii) Engage an institution to (a) develop and initiate a social marketing and
communication strategy to raise the profile and image of technical and vocational
education and training programs, (b) inform trainees and employers about the
training programs, (c) report on the OSDP’s progress, and (d) help mobilize
trainees. The identified institution will also help assess training needs and train
Appendix 3 81
7. The TA project is estimated to cost $2.4 million, and will be financed on a grant basis by
the Japan Fund for Poverty Reduction and administered by ADB. The state government through
the OSDA will support the TA project in the form of counterpart staff, limited office accommodation
and supplies, and other in-kind contributions.
D. Implementation Arrangements
8. OSDA has been established, and the SDTED will be the executing agency. The full OSDP
management team will include four general managers led by a chief executive officer. A project
management consultant team will help OSDA to implement the OSDP effectively. The OSDP’s
steering committee will also serve as the project steering committee for the TA project.
9. For the TA project, ADB will engage eight individual consultants (five international
consultants for 31 person-months and three national consultants for 28 person-months) and three
institutions (for a total of 66 person-months) to provide 125 person-months of consultant inputs.
The consultants will be selected and engaged in accordance with ADB’s Guidelines on the Use
of Consultants (2013, as amended from time to time). Three firms will be selected using the
consultants’ qualification selection method for (i) social marketing and communication, (ii) skills-
gap analysis, and (iii) leadership and institutional capacity development. All disbursements under
the TA project will be done in accordance with ADB’s Technical Assistance Disbursement
Handbook (2010, as amended from time to time). All TA-financed equipment such as computers,
fax machines, multimedia projectors, photocopiers, printers, and other required items will be
procured in accordance with ADB’s Procurement Guidelines (2015, as amended from time to
time). The procured equipment will be handed over to the OSDA upon TA project completion. The
TA project will be implemented over 2 years, from 1 July 2017 to 30 June 2019.
82 Appendix 4
Develop a pool of experts and mentors from industry, government, and civil society to guide and
shape the program and for active advice seeking, problem-solving, and course correction in the
operations of OSDA.
Ensure timely and well-managed meetings of the Executive Committee and governing body of OSDP
through effective pre- and post-meeting documentation and communication for timely guidance and
decisions to facilitate effective implementation.
2. Communications and Stakeholder Management:
The CEO would be responsible for management, coordination, and communication with its
stakeholders – students and community, industry and economy, and various operational partners –
government, private (national and international). The CEO would develop a comprehensive and
proactive communication strategy and mechanism not just to inform about the project but involve
each stakeholder in the project.
Ensuring complete understanding about OSDP within Skill Development and Technical Education
Department, DTET, and OSDA and at least 50 individual opinion leaders. Gain advocacy from
among opinion leaders for long-term sustainability measures such as aligning with emerging policy
changes, sustained funding through effective corpus fund management, etc.
Building a strong and credible communication base for the project and proactively channelizing
positive responses and clarifications.
Evoking interest and commitment of ITI/polytechnic principals, trainers, and officers to lead the
change program on a continued basis to achieve the targets and improvements as envisaged.
Developing sustained enthusiasm for the project from students/parents/community, education
practitioners/training-providers/nongovernment organizations, industry/employers/facilitators,
philanthropists/industry leaders/multilaterals, media, and other departments of the government at the
state and national level.
In addition, the CEO would establish a structured and well scheduled system of reporting and
documentation.
Promotion, mobilization, participative planning, advertising which would include focused group
discussions, online campaigns, media campaigns, job fairs, system of request for proposals, and
bidding.
Information sharing through up-to-date project progress on the OSDP website, monitoring,
evaluation, research through project management information system, periodic research, tracer
studies, skill gap analysis, employer feedback, etc.
Consultations and feedback through regular review meetings with ASTIs, ITIs, skill development
centers, polytechnics, DTET, industry advisory committee, internal audits, quality audits etc.
Problem-solving and grievance redressal through ASTI management committee meetings, OSDA
executive committee meetings, review meetings with SDTED and DTET.
Statutory reporting and audits on regulatory matters through compliance with requirements of
Government of India (tax, Department of Economic Affairs, etc.); Government of Odisha (finance,
registrar of societies, etc.); Asian Development Bank (review missions, procurement, financial
management etc.).
Advocacy and policy advice through policy briefs, research, participation in national and international
seminars and other strategic events.
capacity; personally must see this as a huge opportunity to make a big difference and not just a problem to
be solved.
Deep understanding, affection, passion, and empathy for education and skill development sector in India
including policies, practices, and initiatives of government, industries and civil society organizations.
Knowledge and issues pertaining to development, education, skills in Odisha is necessary. Exposure to
international good practices in skill development including learning methodologies, evolution, experiments
especially digital delivery of learning and experience in liaising with leading agencies in skill development
would be preferred.
Well-versed with industrial growth scenario in India and the world including understanding of the changing
economic scenario in Asia as well as policy direction of the Government of India and Government of Odisha;
Point of view on key trends of the world and impact on learning e.g., demographics, internet of things, digital
infrastructure, future of design in manufacturing, production, delivery, and sustainability. Ability to learn from
unusual source.
Point of view on key trends of the world and impact on learning e.g., demographics, internet of things, digital
infrastructure, future of design in manufacturing, production, delivery and sustainability. Ability to learn from
unusual source.
Experience of working closely with industry leaders and helping them in strategic planning, policy direction,
and regulatory aspects.
Exceptional communication skills required both in written and verbal with exposure in presenting formal
documentation such as journals, reports, presentations, etc. Analytical skills are essential to be able to
articulate complex management information system reporting in the project and system. Background in
writing editorials, research reports would be preferred.
The incumbent should be a graduate or a post graduate from a reputed institution in India or abroad with
qualifications to demonstrate analytical skills, communication skills, management skills, and leadership
skills. Any short-term skill certification, management development program, or proficiency gained in the
world of work would also be considered for selection.
Technical Competencies Behavioral Competencies
Understanding of the history of education and skill People management and stakeholder
development sector in India and Odisha including communication
problems and legacies Networking skills especially with industry
Current and emerging policies, practices and initiatives of leaders and policy makers
government, industries and civil society organizations in Partnership and negotiation skills with
skill development in India national and international agencies
Contract management, financial analysis, project
management
Language requirements
The job demands speaking English, Hindi, and preferably Odiya.
The job demands reading and writing ability in English and preferably in Hindi and/or Odiya.
94 Appendix 5
Role Purpose The General Manager Projects will be responsible for ensuring establishment and
operations of advanced skills training institutes (ASTIs) and industrial training
institutes (it is) under the hub-and-spoke model with a focus on new construction
and installation of equipment during the first 3years.
Reports to Chief Executive Officer, Odisha Skill Development Project (OSDP)
The general manager would be responsible to set in place appropriately qualified people, processes,
and systems to meet the legal and regulatory compliances related to infrastructure development and
also develop a control mechanism to help in monitoring the compliances at regular interval.
The general manager would also ensure timely procurement and right specifications for equipment
and machinery needed in the ASTIs and ITIs. The general manager would prepare a detailed
schedule for pacing the purchases to ensure ‘Just-in-Time’ installation of equipment in the ASTIs
and ITIs.
The general manager would also develop maintenance contracts with the contractors and vendors
for a period of 5years and establish systems for easy access and resolution for any maintenance
requirements in ASTIs and ITIs.
Should be well-versed with regulatory requirements and laws in India and Odisha related to civil
construction, environmental norms, people safety norms, green buildings, disaster management, etc.;
complete understanding of 360˚ sustainability design and engineering.
Track record of creating briefs for architects, working with architects and designers on a complete life cycle
of a project.
Should demonstrate exceptional skills in project management including cost and quality engineering,
scheduling of projects, contract management, project monitoring and reporting and problem solving skills;
formal training in project management would be preferred.
Appendix 5 95
Exceptional communication skills required both in written and verbal with exposure in presenting formal
documentation such as journals, reports, presentations etc. Analytical skills are essential to be able to
articulate complex management information system reporting in the project and system. Background in
writing editorials, research reports would be preferred.
The incumbent should be a graduate or a post graduate from a reputed institution in India or abroad with
qualifications to demonstrate analytical skills, communication skills, management skills and leadership
skills. Any short-term skill certification, management development program, or proficiency gained in the
world of work would also be considered for selection.
Table A5.3: Terms of Reference for General Manager Training Operations and
Industry Partnerships
Role Title General Manager Training Operations and Industry Partnerships
Role Purpose The General Manager Training Operations and Industry Partnerships will be
responsible for ensuring that the training targets of 200,000 trainees, 250 master
trainers, 20,000 trainers including 1,000 assessors; and liaising and establishing
strategic partnerships with industries in and outside of Odisha.
Reports to Chief Executive Officer, Odisha Skill Development Project (OSDP)
Levels of Direct Manager Industry Partnerships
Reports Corporate Social Responsibility Specialist
Program Management Specialist for Self-Employment
Outreach and Mobilization Specialist
Key Areas of Responsibility and Accountability
1. Program Management and Leadership
Achievement of OSDA training target of 200,000 trainees within advanced skills training institutes
(ASTIs) and outside ASTIs, through a combination of core team and an extended team of
professional consultants (part-time or full-time) either as individuals or firms.
The general manager would be responsible to work closely with the training providers selected for
the operations of ASTIs and develop comprehensive strategies for mobilization, outreach and
placements for students of the ASTIs and the catchment areas. The general managerwould also
be responsible for ensuring efficient operations and management of ASTIs.
The general manager would also help in networking between the ASTIs and industrial training
institutes (it is) and develop cluster level plans for training in each of the hub ASTI and spoke ITIs.
The general manager would provide facilitation support through the Skill Development and
Technical Education Department and Directorate of Technical Education and Training. This would
include, developing ‘sandwich programs’ for Craftsmen Training Scheme students in ITIs to be
delivered by ITI trainers with the help of ASTIs.
The general manager would be responsible for the overall management information system (MIS)
for the system developed, maintained, and operated through a specialist firm hired for the same.
The MIS would include information on the entire value chain of training such as content and
program development, training of trainers, scheduling of training calendar, mobilization,
counselling, admissions, batch commencement, student and trainer attendance, student training,
assessments, certification, placements, and tracking. In addition, the general manager would be
responsible for deploying networking technologies such as video-conferencing, webex, mobile or
app-based services, direct-to-home/ satellite TV etc. and other technology for monitoring such as
closed-circuit TV systems, biometric systems for attendance, etc.
The general manager would also be responsible in generating periodic reports on operations for
different stakeholders such as the government, Asian Development Bank, and other regulatory
agencies.
The general manager would engage specialist firms or nongovernment organizations to develop
and deliver special programs on self-employment and recognition of prior learning and be
responsible for the outputs of the engagement.
2. Strategic Partnerships - Industry
Develop industry engagement strategies to ensure placements for persons trained for placements
and sub-strategies for achieving targets for both domestic and overseas placements. The
apprenticeship and placement strategy has to be developed in close association with the training
providers of ASTIs and ITIs so that the OSDA and training operators could leverage each other’s
strengths, avoid duplication and interact with the industry as one consolidated unit.
Appendix 5 97
Partnerships for industry involvement in ASTIs for training of trainers, master trainers, content
development, feedback on students, worker training and customized training programs.
Partnerships with industry for corporate social responsibility support.
3. Strategic Partnerships – Skill Development
The general manager would be responsible for strategic partnerships with respect to delivery of
training at the state level such those with Odisha State Employment Mission and other
departments of the state government.
The general manager and consulting team would work closely for developing district level skill
development plans, organizing skill surveys, rationalizing training fee norms, etc.
The general manager would also need to be well-updated about ongoing initiatives in skill
development in India and the world, and be responsible for strategic partnerships with leading
training providers to provide their inputs to the ASTIs and ITIs in Odisha.
Table A5.4:Terms of Reference for General Manager Learning and Quality Assurance
Role Title General Manager Learning and Quality Assurance
Role Purpose The General Manager Learning and Quality Assurance will be responsible for
designing and operationalizing a robust quality assurance system including
development of courses, training of master trainers, trainers and assessors,
assessment and certification, and effective monitoring of quality improvements.
Reports to Chief Executive Officer, Odisha Skill Development Project (OSDP)
Lead the development of content and curriculum in priority sectors and trades in line compliance
with the National Skill Qualification Framework and national and international standards.
Coordinate with the industry advisory committee for regular inputs on courses, curriculum, and
pedagogy.
Developing through specialist consultants and firms learning technologies such as digital content,
online content, online assessment platforms, learning management systems, and open and
distance learning.
Lead the development of training programs for master trainers, trainers and assessors in line
with national and international standards to ensure high quality training in ASTIs and ITIs;
The general manager would work closely with the ASTIs and ITIs in adopting or adapting the
standards, method of training, and assessment.
The general manager would work closely with the General Manager of Training Operations and
Industry Partnerships to ensure synergy in interactions with the industry especially the industry
advisory committee regarding course and curriculum feedback, preparation of master trainers,
trainers and assessors.
The general manager would be well-updated on skill development initiatives in the country and
abroad and should be able to innovate based on learning from other initiatives.
Appendix 5 99
Should have experience in quality assurance and operating large programs, Government or otherwise
in India or abroad including monitoring, evaluation, research and partnerships. Experience in instruction
design would be preferred.
Should have good understanding of use of technology in education/training and blended learning.
Deep understanding of the education and skill development sector in India including policies, practices,
and initiatives of government, industries and civil society organizations. Exposure to international good
practices in skill development including connections with leading agencies in skill development would
be preferred.
Experience of working closely with industry leaders and helping them in strategic planning, policy
direction, and regulatory aspects.
Exceptional communication skills required both in written and verbal with exposure in presenting formal
documentation such as journals, reports, presentations, etc. Analytical skills are essential to be able to
articulate complex management information system reporting in the project and system. Background in
writing editorials, research reports would be preferred.
The incumbent should be a graduate or a post graduate from a reputed institution in India or abroad
with qualifications to demonstrate analytical skills, communication skills, management skills and
leadership skills. Any short-term skill certification, management development program or proficiency
gained in the world of work would also be considered for selection.
Technical Competencies Behavioural Competencies
Knowledge of skill training, job placement and Program management and leadership skills
promoting self-employment
Communication and partnership skills
Knowledge of all key elements of quality
assurance of skill development programs
Knowledge of national and international
institutions involved in quality assurance
Language requirements
The job demands speaking English, Hindi and preferably Odiya.
The job demands reading and writing ability in English and preferably in Hindi and/or Odiya.
100 Appendix 5
The general manager would be responsible for hiring and selection of core staff as well as
consultants for OSDP through a well-structured and transparent process of recruitment.
The general manager, with the help of a specialist firm, would develop a human resource manual
including criteria for payments, fee, and salaries.
Appendix 5 101
The general manager would also be responsible for general administration of OSDA including
facilities management, security management, and logistics management.
Thegeneral manager would hire the services of an IT support firm responsible for providing IT
hardware and software support to OSDA including networking solutions, cloud computing, security
mechanisms, and third-party software procurement and maintenance.
1. The core problem in Odisha is the low employability of the young workforce due to low
skills, weak capacity, fragmented skills ecosystem, and weak synergy with industries. Under
the national ‘Make in India’ campaign, the Government of India is emphasizing the need to
develop capacity in higher end skills in manufacturing and services sector. However, states
like Odisha at a lower level of human development index and with a large tribal and
disadvantaged population are grappling with the challenge of enabling and equipping its
population to transition from less productive agriculture and informal sectors to more
productive formal sectors requiring high-end skills. The private sector is yet to demonstrate
large scale, sustainable models to provide training in higher end manufacturing and capital
intensive sectors that require higher investment. At the same time, the government’s
investment in industrial training institutes (ITIs), polytechnics, and technical colleges have not
responded adequately to emerging labor market needs and led to desired jobs and
remuneration. There is recognition to combine government investment with private sector
efficiency in high quality training by consolidating and building on current investments.
2. The current training capacity and quality in Odisha is inadequate to meet the Twelfth
Five-Year Plan target of training 1million people for employment. In order to transform the
technical and vocational education and training sector and to substantially enhance the
employability of the youth population in Odisha, the Government of Odisha will implement the
proposed Odisha Skill Development Project (OSDP). The impact of the project will be
increased employability and productivity of Odisha’s working age population. The outcome of
the project will be increased skills and employment in priority sectors for males and females.
3. The project outcomes will be achieved through four outputs. Under the first output,
increased equitable access to market-responsive skill development programs, OSDP will
establish eight new advanced skills training institutes (ASTIs) and support 30 ITIs in a hub-
and-spoke model to train 200,000 trainees with 70% employment in priority sectors and trades
in line with Government of India’s emphasis on “Make in India.” The training includes 25,000
through recognition of prior learning and 5,000 for self-employment. Under the second output,
improved quality and relevance of skill development programs, the OSDP will establish a
robust quality assurance system including credible assessment and certification, create a pool
of 250 master trainers and establish a mechanism for training 14,000 trainers including 1,000
assessors, benchmark eight ASTIs and 30 ITIs, and promote technology-enabled training and
learning.
4. Under the third output, skills ecosystem strengthened, the OSDP will promote
partnerships with international and national knowledge institutions and other government
departments, establish counselling and placement centers, including creation of a web- based
skills exchange, pilot self-employment initiatives to train 5,000, and develop skill database and
skill inventory. Under the fourth output, institutional capacity strengthened, the OSDP will
operationalize and empower the Odisha Skill Development Authority (OSDA) as a financially
and administratively autonomous agency to engage and supervise ASTI operators to manage
and operate the ASTIs, put in place a robust and unified monitoring and evaluation system,
and engage project management consultants (PMCs) to support OSDA, Skill Development
and Technical Education Department (SDTED) and Directorate of Technical Education and
Training (DTET).
5. The SDTED will be the executing agency and has established the OSDA as the main
implementing agency to implement the OSDP. The OSDA core management team for OSDP
will include a chief executive officer along with a core management team supported by PMCs
to implement the OSDP.
Appendix 6 103
6. The overall organization structure of the OSDP is depicted in the chart below:
Directorate of
Odisha Skill
Techincal Odisha State
Development
Education and Employment
Society
Training Mission
(OSDS)
(DTET)
Advanced Skill
ITIs/ Skills Training Development
Polytechnics Institutes Centres
(ASTIs) (SDCs)
7. The executing agency for the project will be the GOO acting through the SDTED. The
GOO through the SDTED has established OSDA with financial and administrative autonomy
to lead the project implementation. The executive committee of the OSDA comprises of the
development commissioner as president; secretary, SDTED as vice-president; and members
from DTET, Department of Finance, Directorate of Employment, and industry associations
consisting of Federation of Indian Chambers of Commerce and Industry, Confederation of
Indian Industry, and Utkal Chambers of Commerce. The executive committee will be assisted
by a chief executive officer (who will lead OSDA management team comprising of experts on
vocational training, industry relations, finance, procurement, audit, monitoring, etc.
9. The OSDA management team organization structure is shown in the figure below:
Installation Specialist Incld. 2 RAs Incld. 2 RAs Research, Monitoring and Evaluation
(Skill Ecosystem Assessment, Tracer
Studies, District Planning, Implementation
Counseling and Placement Centres Gender Safeguards Environment Supervising Engineers and Operations of OSDP Enterprise
(CPCs) at 30 ITIs in each of the 30 districts Specialist Specialist Specialist (ASTIs and non-ASTIs) Resource Planning (ERP) and
Management Information System (MIS)
Consultancies
Other
10. The role of PMC in OSDP is of critical importance in not only providing technical and
knowledge services through a dedicated cadre of professionals in different domains of the project
but also assist the OSDP core team in strengthening the ecosystem of skill development in the
state of Odisha and develop a pioneering example of support and capacity building services in
skills development.
11. The scope of work for PMC has been developed keeping in mind the evolution of the
project and the varying degree of different functions envisaged under the project. For example,
there would be intense project management activities in the initial years which would later
converge with the activities under operations management and so on. The role of PMC would
also be intensive under some functions in the initial years while it may be intensive in other
functions in the later years.
12. It is also expected that the PMC would propose the staff keeping in mind the duration of
the project and persons based in Odisha. The staff profiles which are required in the project in an
intermittent manner would also to have to demonstrate their time commitment towards the project
through written contracts with the PMC firm.
13. The scope of work of PMC has been designed under the seven core functions of the
following:
14. In order to have efficient and focused operations for the project, the PMC is expected to
organize modular teams around various functions as follows:
15. The overall PMC would be headed by a full-time team leader working closely with the
CEO’s office along with two analysts for overall strategic and operational responsibility for OSDA,
execution of its vision and mission and achievement of its targets and objectives.
16. The PMC would provide project management support to General Manager Projects for (i)
project management of the establishment of the eight ASTI building infrastructure—both
temporary and permanent; (ii) project management of the construction activities in the spoke ITIs;
(iii) project management of the equipment installation and commissioning of the training both in
the ASTI and spoke on ITIs; and (iv) maintenance services to the OSDP on commencement of
operations.
17. The PMC would provide training operations support to General Manager Training
Operations and Industry Partnerships for liaising with industry for corporate social responsibility
support.
18. The PMC would provide learning and quality assurance support to the team of Manager
Quality Assurance, Manager Content & Curriculum Development, Manager Trainer Development
and Manager Education Technologies for the following: (i) designing and implementation of
quality assurance framework in the OSDP training network; (ii) monitoring quality in delivery of
training in the OSDP training network; (iii) development of content to be used for various programs
in the OSDP network; (iv) new program development; (v) trainer development; (vi) forging
international and national knowledge partnerships for the OSDP network; (v) working with the
sector skills councils on various technical aspects of the programs being offered in the OSDP
network; and (vi) coordinating with the General Manager Industry Partnerships and General
Manager Trainee and Community Engagement for effective training.
19. The PMC would support the Capacity Development Resource Unit which would provide
capacity development support to integrate the state level training targets, training norms, fee
norms, and quality norms to achieve a strengthened ecosystem for skill development and capacity
building in management of project implementing agencies of the state.
20. The PMC will establish 30 counselling cum placement centers (CPCs), one in each of the
30 ITIs spread in 30 districts. These centers would provide mobilization and pre-placement
counselling to the trainees. The purpose of the CPCs would be to address the emerging problem
of trainee drop-outs; i.e., there are trainees who do not accept job offers after training or quit jobs
due to dissatisfaction of job profile, job environment or pay scale within the first few months of
placement. All these issues arise from expectation and delivery mismatch across the training
value chain. These issues can be addressed through structured mobilization and counselling, pre-
110 Appendix 6
placement counselling including counselling with parents, and post placement support, with a
focus on better matching of expectations with proper training and follow-up support.
21. The CPCs would provide mobilization counselling services in the local language by the
local counselor. These may include activities like:
(i) Understanding the key factors motivating the trainee to join the training program –
the short-term and long-term career goals of the trainee, current economic
compulsions and responsibilities, minimum salary expectations, and expectations
at the workplace.
(ii) Evaluation of the soft-skills possessed by the trainee at the time of joining (e.g.,
clarity of communication, English-speaking skills, degree of ease with technology);
special requirements or support they would require, especially in the trade they are
likely to choose.
(iii) Sharing of success stories using innovative media channels to boost their
confidence in vocational training, providing a snapshot of the actual work profile to
trainees through videos, giving them a perspective on the life-skills they would
acquire after being trained at the ASTIs or spoke ITIs and its utility for their career
development, connecting prospective trainees to those who have attained
employment across various trades, etc.
22. The CPCs would also provide pre-placement support such as:
23. The PMC would bring in expertise to implement and operate a complete monitoring and
evaluation (M&E) system including trainee tracking through an enterprise resource planning
(ERP)/management information system for the project and would include developing:
(ii) ERP and MIS platform to analyze the information from the M&E system and help
manage the complete training value chain in areas of content and program
development, training of trainers, scheduling of training calendar, mobilization,
counselling, admissions, batch commencement, student and trainer attendance,
student training, assessments, certification, placements, tracking, capturing
training data, creation of databases, data analytics to understand program
effectiveness and impact. Specific tasks would include:
- Design web-based ERP and MIS including data collection templates (input),
consolidation formats and report generation at various dimensions for
management decision making across the entire value chain of training and
operations in OSDP;
- Develop a dash board for key stakeholders of ODSP for quick access and
analysis of data & information;
- Develop user manual for the application software and impart training to the
OSDA staff and partners;
- Develop a data quality assurance protocol to validate the information collected
through the ERP/MIS system;
- Provide operational, software upgradation and maintenance support for the
ERP/MIS application for 3-year post implementation; and
- Develop capacities of the OSDA team in operating, managing and maintaining
the ERP/MIS application.
(iii) Skill database/skill inventory system in the form of a web-based skills exchange
portal to improve student placement and linking them up to counselling centers in
ITIs and also facilitation desks in different cities of the country. The skill database
should be also linked to the National Career Service portal developed by
Government of India.
(iv) Design and implement M&E studies such as skill census, district planning, dipstick
surveys, student tracking, tracer studies, industry feedback, etc. or any special or
need-based study advised by OSDA.
Total 7
ERP = enterprise resource planning, M&E = monitoring and evaluation, MIS = management information system.
Source: Asian Development Bank.
1 Team leader 1 36 36
2 Young professional (CEO Office) 2 60 120
3 Gender specialist 1 36 36
4 Social safeguards 1 36 36
5 Environment specialist 1 36 36
Engineering equipment installation
6 1 18 18
specialist
Supervising engineers (ASTIs and
7 12 18 216
non-ASTIs)
8 CSR specialist 1 10 10
Sector specialists (manufacturing +
services)
9 12 10 120
12 sectors including agriculture and
handicraft
10 SSDM specialist for OSDA 1 30 30
Skill development specialist for
11 1 30 30
OSDA
Skill development specialist for DTET
12 1 30 30
(hub-spoke model)
13 Counselling and placement specialist 1 60 60
Counsellors and placement
14 60 60 3,600
coordinators
15 M&E specialist 1 10 10
ERP and MIS specialist (can be
16 1 10 10
outsourced)
M&E,ERP,MIS operations team (can
17 5 60 300
be outsourced)
Total 103 550 4,698
ASTI = advanced skills training institute, CEO = chief executive officer, CSR = corporate social responsibility, DTET =
Directorate of Technical Education and Training, ERP = enterprise resource planning, M&E = monitoring and
evaluation, MIS = management information system, OSDA = Odisha Skill Development Authority, PMC = project
management consultant, SSDM = State Skill Development Mission.
Source: Asian Development Bank.
114 Appendix 7
A. Scope of Work
1. The Odisha Skill Development Authority (OSDA) intends to procure the services of a
reputable chartered accountant firm (the consultant) to provide independent and objective
outsourced internal auditing for a period of 2years. The function of the head of internal audit, along
with his team members will be outsourced to the consulting firm, who will report to the executive
committee of OSDA. The head of internal audit is expected to be a member of the Institute of
Chartered Accountants of India (ICAI) and a recognized Institute of Internal Audit, and have more
than 7 years of experience in the area of internal audit, preferably in the public sector. Internal
audit team members shall have over 5 years of relevant experience. The internal audit team
assigned will not be replaced without the consent of the OSDA. Details of expected team
members and input are given below.
3. The internal audit function will cover all activities of OSDA, as well as activities undertaken
by the other implementing partners (e.g., ASTIs) under the Odisha Skill Development Project
(OSDP). The team will set up and establish the internal audit function at OSDA, including the
development of an adequate internal audit manual, such that the internal audit function maybe
gradually co-sourced and ultimately housed within OSDA.
B. Role
4. The purpose, authority, and responsibility of the internal audit activity must be formally
defined in an internal audit charter, consistent with the Definition of Internal Auditing, the Code of
Ethics, and the acceptable internal audit standards. This will also give due regard to the guidance
provided by the Internal Audit Division of the Comptroller General of Accounts, India. This must
be approved by the executive committee of OSDA.
5. To ensure operational independence, the internal audit head shall be established by and
report directly to the executive committee of OSDA.
6. In addition to the above, with respect to internal audit, the executive committee directly, or
a sub-committee appointed on their behalf, shall have the authority to:
(i) Approve the annual audit plan and all major changes to the plan. Review the
internal audit activity’s performance relative to its plan.
(ii) Review with the chief audit executive the internal audit budget, resource plan,
activities, and organizational structure of the internal audit function.
(iii) Review the effectiveness of the internal audit function, including conformance with
the ICAI and The Institute of Internal Auditors' the Definition of Internal Auditing,
Code of Ethics and the International Standards for Professional Practice of Internal
Auditing.
Appendix 7 115
(iv) On a regular basis, meet separately with the chief audit executive to discuss any
matters that the committee or internal audit believes should be discussed privately.
C. Scope of Work
7. The scope of internal auditing encompasses, but is not limited to, the examination and
evaluation of the adequacy and effectiveness of the organizations’ governance, risk management,
and internal controls as well as the quality of performance in carrying out assigned responsibilities
to achieve the organizations’ stated goals and objectives. This includes:
(ii) Evaluating the reliability and integrity of information and the means used to identify,
measure, classify, and report such information.
(iii) Evaluating the systems established to ensure compliance with those policies,
plans, procedures, laws, and regulations, which could have a significant impact on
the organization.
(iv) Evaluating the means of safeguarding assets and, as appropriate, verifying the
existence of such assets.
(v) Evaluating the effectiveness and efficiency with which resources are employed.
(vi) Evaluating operations or programs to ascertain whether results are consistent with
established objectives and goals and whether the operations or programs are
being carried out as planned.
(viii) Monitoring and evaluating the effectiveness of the organization's risk management
processes.
(x) Reporting significant risk exposures and control issues, including fraud risks,
governance issues, and other matters needed or requested by the management.
D. Professionalism
8. The internal audit activity will govern itself by adherence to the ICAI and The Institute of
Internal Auditors' mandatory guidance including the Definition of Internal Auditing, the Code of
Ethics, and the International Standards for the Professional Practice of Internal Auditing
(Standards). This mandatory guidance constitutes principles of the fundamental requirements for
the professional practice of internal auditing and for evaluating the effectiveness of the internal
audit activity’s performance.
116 Appendix 7
E. Authority
9. The internal audit activity, with strict accountability for confidentiality and safeguarding
records and information, is authorized full, free, and unrestricted access to any and all of OSDA’s
and the above-defined relevant institutions’ records, physical properties, and personnel pertinent
to carrying out any engagement in the OSDP. All employees are requested to assist the internal
audit activity in fulfilling its roles and responsibilities. The internal audit activity will also have free
and unrestricted access to the executive committee of OSDA.
10. The internal audit activity will remain free from interference by any element in the
organization, including matters of audit selection, scope, procedures, frequency, timing, or report
content to permit maintenance of a necessary independent and objective mental attitude. Internal
auditors will have no direct operational responsibility or authority over any of the activities audited.
Accordingly, they will not implement internal controls, develop procedures, install systems,
prepare records, or engage in any other activity that may impair internal auditor’s judgment.
11. Internal auditors will exhibit the highest level of professional objectivity in gathering,
evaluating, and communicating information about the activity or process being examined. Internal
auditors will make a balanced assessment of all the relevant circumstances and not be unduly
influenced by their own interests or by others in forming judgments.
12. The head of internal audit will confirm to the board of directors of OSDA, at least annually,
the organizational independence of the internal audit activity.
13. At least annually, the head of internal audit will submit to senior management and the
executive committee of OSDA an internal audit plan for review and approval. The internal audit
plan will consist of a work schedule as well as budget and resource requirements for the next
fiscal/calendar year. The head of internal audit will communicate the impact of resource limitations
and significant interim changes to senior management and the board of directors of OSDA.
14. The internal audit plan will be developed based on a prioritization of the audit universe
using a risk-based methodology, including input of senior management and the Board of Directors
of OSDA. The head of internal audit will review and adjust the plan, as necessary, in response to
changes in the organization’s business, risks, operations, programs, systems, and controls. Any
significant deviation from the approved internal audit plan will be communicated to senior
management and the executive committee of OSDA through periodic activity reports.
15. Given that OSDA is a newly established entity, key risk areas are likely to be (i) compliance
with the Government of Odisha’s general financial rules in incurring expenditure, (ii) compliance
with procurement guidelines, and (iii) compliance with Asian Development Bank’s disbursement
and financial management.
16. A written report will be prepared and issued by the head of internal audit or designee
following the conclusion of each internal audit engagement and will be distributed as appropriate.
Internal audit results will also be communicated to the executive committee of OSDA. Although
Appendix 7 117
the internal audit function will be continuous, the head of internal audit will issue at least four audit
reports per year i.e., on a quarterly basis.
17. The internal audit report may include management’s response and corrective action taken
or to be taken in regard to the specific findings and recommendations. Management's response,
whether included within the original audit report or provided thereafter (i.e., within 30days) by
management of the audited area should include a timetable for anticipated completion of action
to be taken and an explanation for any corrective action that will not be implemented.
18. The internal audit activity will be responsible for appropriate follow-up on engagement
findings and recommendations. All significant findings will remain in an open issues file until
cleared.
19. The auditor should submit three copies of the final report within 1month at the end of each
quarter.
118 Appendix 8