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D)ocument of The World Bank F'OR ()FFItIA I. t SF ONLY Public Disclosure Authorized Report No. QO*3-I N STAFF APPRAISAL REPORT Public Disclosure Authorized INDIA SECOND TECHNICIAN EDUCATION PROJECT MARCH 8, 1991 Public Disclosure Authorized Asia Country Department I\ (India) Public Disclosure Authorized Population, Human Resources, Urban and Water Operations Division This documenthas a restricteddistribution and man be used bv recipientsonly in the periornnanceof their official duties. Its contentsman not otherwisebe disclosedwAithout W'orld Bank authorization. CURRENCYEQUIVALENTS (As of January 1991) Currency Unit = Rupee Rupee 19.43 = US$ 1.00 Rupee 1.00 = US$ 0.051 METRIC EQUIVALENTS 1 Meter (m) = 3.28 Feet (ft) 1 Kilometer (km) = 0.62 Miles FISCAL YEAR April 1 - March 31 ABBREVIATIONS AICTE - All India Council for Technical Education BTE - Bureau of Technical Education DEA - Department of Economic Affairs, Ministry of Finance DGS&D - Directorate General of Supplies and Disposals DOE - Department of Education, Ministry of Human Resources Development DTE - Directorate of Technical Education DPR - Detailed Project Reports EFC - Expenditure and Finance Committee, Ministry of Finance EDCIL - Education Consultants India Ltd. GOI - Government of India IAMR - Institute for Applied Manpower Research IIT - Indian Institute of Technology ITI - Industrial Training Institute MHRD - Ministry of Human Resources Development NBA - National Board of Accreditation NTMIS - National Technical Manpower Information System NPE - National Policy on Education (1986) NPIU - National Project Implementation Unit PFU - Project Facilitation Unit TTTI - Technical Teacher Training Institute SPIU - State Project Implementation Unit FOR OFFICIALUSE ONLY INDIA SECOND TECHNICIAN EDUCATION PROJECT Table of Contents Page No. BASIC DATA ........ iv CREDIT AND PROJECT SUMMARY ......................................... v I. TECHNICIAN EDUCATION IN INDIA A. Introduction ............................................. 1 B. Organization of Technical Education ...................... 2 C. Management and Administration of Technical Education ..... 3 D. Problems and Issues in Technician Education............... 3 II. GOVERNMENT POLICIES, PLANS AND PROGRAMS IN TECHNICAL EDUCATION A. National Policy On Education.............................. 4 B. The Eighth Five-Year Plan (1990-94)....................... 5 C. The Ten-Year Technician Education Investment Program (1990-99)................ ....................... 5 D. Financing of Technician Education ........................ 6 E. External Financing of Education........................... 6 F. IDA Role and Sector Lending Strategy ..... ................7 III. THE PROJECT A. Goals and Objectives ..................................... 8 B. Scope ............ ........................................10 C. Capacity Expansion ....................................... 10 D. Quality Improvement................. .....................I 13 E. Efficiency Improvement ................................... 14 IV. COSTS, FINANCING, IMPLEMENTATION AND DISBURSEMENTS A. Costs ............ .......................................16 B. Financing Plan .......................................... 18 C. Recurrent Cost Implications ............................. 18 D. Status of Preparation ................................... 18 E. Project Management/Implementation ....................... 19 F. Monitoring, Review and Evaluation ....................... 21 G. Disbursements ........................................... 21 H. Procurement ......... ....................................22 I. Accounting and Auditing ................................. 24 This report is based on the findings of an Appraisal mission from November 28- December 14, 1990. Mission members were Mr. R. Cambridge (Principal Economist, Team Leader), E Sigl (Technical Educator), Ms. A. Nazareth (Educational Planner), and E. Dib (Architect, Consultant). Ms. M. Chatterji, (Secretary NDO) and Ms. S. Pak assisted in preparing the Report. The processing of the project was supervised by Mr. R. Skolnik, Chief, Population, Human Resources, Urban and Water Operations Division (AS4PW) and Mr. H. Vergin, Director of the India Country Department. This documenthas a restricteddistribution and may be usedby recipientsonly in the performance of their official duties Its contentsmay not otherwisebe disclosedwithout World Bank authorization. ii - Page No. V. BENEFITS AND RISKS A. Benefits................................................. 24 B. Risks ............ .......................................25 VI. AGREEMENTS REACHED .......................................... 25 TABLES 3.1 Objectives, Investments and Desired Outcomes .... ............ 9 4.1 Project Costs by Component .................................. 17 4.2 Project Costs by Categories of Expenditure................... 17 4.3 Procurement Method .......................................... 23 ANNEXES 1. Government Polytechnics by Project State showing Annual Enrollments (1988/89)..................................................... 27 2. Guidelines for Recogniti3n of Private Polytechnics............ 28 3. The Technical Education System in India....................... 29 4. Problems and Issues in Technical Education.................... 34 5. The Ten-Year (1990-99) Technician Education Investment Program 40 6. Present Fee Structure at Polytechnics in Project States....... 42 7. Criteria for Selection of States.............................. 43 8. Detailed Project Components by State.......................... 45 9. Summary of New Technology Courses to be Offered............... 46 10. New Co-educational Polytechnics by State...................... 49 11. Multi-Point Entry and Credit System........................... 51 12. Continuing Education Centers and Departments by State......... 54 13. Community Polytechnics by State............................... 56 14. New Women's Polytechnics by State............................. 58 15. Summary of Civil Works Program................................ 59 16. Additional Places Created in Polytechnics by State............ 60 17. Teacher Training and Faculty and Staff Development Program .... 61 18. Schedule of Deployment of Key Additional Staff................ 62 19. Staff Development linked to Career Development................ 72 20. Industry-Institute Interaction Programs by State.............. 78 21. Technical Assistance Program.................................. 83 22. Project Costs Summary Costs by Components and Time.......................... 85 Summary Costs by Categories of Expenditure and Time........... 86 Summary Costs by Component and Categories of Expenditure...... 87 23. Financing Plan by Component and by Categories of Expenditure. 88 24. Recurrent Cost Implications .................................. 90 25. Civil Works, Furniture and Equipment Procurement and Implementation Schedules ..................................... 91 26. Key Indicators................................................ 92 27. Project Supervision Plan...................................... 93 28. Forecasts of Expenditures and Disbursements................... 100 29. Selected Documents and Data Available in the Project Files .... 101 - iii - Page No. DIAGRAMS/CHARTS 1. Articulation of the Education System ...... ..................103 2. Technical Education System in India ......................... 104 3. Organizational Structure of Technical Education .............. 105 4. AICTSE and its Organizations ......... ........................106 5. Organizational Structure of NPIU ............. 107 6. National Project Directorate at BTE .......................... 108 - iv INDIA SECOND TECHNICIAN EDUCATION PROJECT Basic Data /a General Population (million) 1988 848 Annual Growth (Z) 2.2 Urban Population (Z of total) 25 GNP per capita (US$) 270 Population below poverty line (Z) (1983) 37 Employment in the Organized Sectors (1986) Million Percent Agriculture i.4 6 Industrial Sectors /b 12.4 49 Service Sectors 11.3 45 Labor Force Participation Rate _1986) Male Female Total Participation rates (Z) 55 21 39 Labor Force by Education Level (Z) Primary & Below Secondary Higher 80 15 5 Number of Vocational Training and Technical Education Institutions,Enrollments and Output (1986-87) No. of Annual Type Institutions Enrollments Output Industrial Trg. Institutes (ITI) (Government) 852 228,278 80,350 ITI (Private) 1,035 98,831 25,327 Advanced Voc.Trg. Schools 22 10,000 10,000 Secondary Voc. Schools 1,500 72,000 26,000 Polytechnics (AICTE approved) 467 194,000 68,000 State Eng. Colleges (SEC) 272 100,000 25,000 Regional Eng. Colleges (REC) 17 21,000 5,500 Indian Inst. of Technology (IIT) 5 4,000 1,300 Apprenticeship Training 139(trades) 131,486 49,'00 Ministry of Human Resource Development:Budget Allocations (US$ million) Department of Education Plan Non-plan Budget Estimates (1989-90 Revised) 463.5 382.0 Budget Estimates (1990-91) 510.7 441.1 ta Sources: Ministry of Manpower & Ministry of Hunan Resources Development (unless shown otherwise). /b Includes mining and quarrying, manufacturing, construction, public utilities, and transport and communications. Includes employment in establishments of 10 workers or more. - v - INDIA SECOND TECHNICIAN EDUCATION PROJECT CREDIT AND PROJECT SUV1MARY 3orrower: India, acting by its President leneficiaries: Governments of Andhra Pradesh, Assam, Haryana, Himachal Pradesh. Maharashtra, Punjab, Tamil Nadu, and West Bengal and The Union Territory of Delhi .mount: SDR 213.5 million (US$307.1 million equivalent) rerms: Standard, with

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