What is NAPS Scheme? Definition, Eligibility, Features, Steps to Apply

If you are an employer looking to streamline your recruitment, build a skilled workforce, and a steady talent pipeline while reducing training costs, then the NAPS (National Apprenticeship Promotion Scheme) is for you. The NAPS scheme enables organizations to stay competitive in the fast-evolving job market of India. Launched by the Government of India, the Ministry of Skill Development and Entrepreneurship (MSDE) 2016, the NAPS program proactively creates and increases the skilled workforce in India. Here is a complete NAPS guide, including the main features and benefits of the NAPS scheme and how companies can become eligible for it, as well as gain from it.

The hope is to raise the figure of apprenticeship engagement from 2.3 lakh at its inception to 50 lakhs, promoting awareness of the goodness of apprenticeship and how it can transform the corporate landscape in India. The efforts seem to be paying off so far. As of July 2022, the number of apprentices in India was about 13.8 lakh.

What Is the NAPS Scheme?

The National Apprenticeship Scheme (NAPS) is a government initiative in India that encourages and supports organizations to hire apprentices. The scheme offers financial support to companies that undertake apprenticeship programs. The main aim of the scheme is to promote on-the-job training to individuals and bridge the gap between education and employment, and benefit both job seekers as well as employers.

What Is the Full Form of NAPS?

The full form of NAPS is National Apprenticeship Promotion Scheme. It is a program that helps youngsters who may or may not have enough education get on-the-job training to make them job-ready, as well as help employers build a workforce with individuals with the skills they require for various roles.

What Are the Objectives of the NAPS Scheme?

The primary objective of the NAPS Scheme is to promote apprenticeship training to develop skills of individuals to equip them with suitable jobs, as well as address critical skills gaps in companies and help them build and hire a skilled workforce.

One of the main intentions of the program is to promote and support apprenticeship culture by maximizing apprentices’ engagement in the micro, small, and medium enterprises (MSME) segment to build productivity.

The NAPS scheme helps in building partnerships and connecting industries and educational institutions, and also supports organizations that undertake NAPS programs.

Who Is Eligible for the NAPS Scheme?

To be eligible for the National Apprenticeship Promotion Scheme (NAPS), individuals must be a minimum of 14 years of age, and in the case of hazardous industries, the cut off 18 years old.

For organizations to be eligible to implement the NAPS scheme, they must have more than 30 employees working. In this case, incorporating the National Apprentice Promotion Scheme is compulsory. The apprentice count must be a minimum of 2.5% to a maximum of 15% of the total headcount. 5% of the total will be skilled and certificate-holding apprentices.

Some of the must-have documentation for employers to implement the NAPS program-

1. EPFO/ESIC/UDYOGAADHAR
2. TIN Number
3. Officially registered on the online portal
4. Aadhar-linked bank account

What Are the Key Features of NAPS?

Some of the Key Features of NAPS include financial benefits for employers, a double benefit of earning while learning for individuals, and more.

• The government takes the responsibility for paying 25% of the stipend that is to be paid to the apprentices or 1500 rupees per month, whichever is lower. This reduces the financial burden on employers and encourages them to hire more apprentices.
• NAPS pays for the basic training of those apprentices who do not have a prior formal training in any skill. This facilitates training of the apprentices to be job-ready before they move on to the on-the-job training.
• Industries are encouraged to participate in developing training modules and standards, as it would help apprentices learn skills that are in demand currently and for the future.
• Micro, Small, and Medium Enterprises (MSMEs) receive higher incentives to hire apprentices. This helps startups and medium-sized enterprises get access to skilled manpower.
• Both employers and apprentices can easily register on the online portal. Through the portal, contracts can be uploaded, stipend disbursements can be tracked, and monitor performance.
• NAPS proactively funds apprenticeship programs in sectors like manufacturing, agriculture, retail, logistics, IT, and more, encouraging inclusivity and diversity.
• There is a campaign that creates awareness among businesses and individuals to take part in apprenticeships.

How Does NAPS Promote Apprenticeship Training?

• NAPS promotes apprenticeship training by providing companies with financial assistance and offering apprentices support during their training.
• NAPS takes responsibility for the partial reimbursement of the stipend to be paid to apprentices, reducing the financial burden on employers
• A portion of basic training costs is also reimbursed to the employers by the government.
• The scheme encourages various industries to take up the apprenticeship program by offering financial support
• Apprentices are encouraged to join the program by offering them stipends during their training period, instilling interest in the scheme, as well as taking care of their basic needs.
• Practical, on-the-job training is provided to make individuals job-ready
• Apprentices receive certificates after completion of their training, increasing their chances of landing good jobs in the future.
• The NAPS scheme helps connect apprentices with potential employers, increasing their chances of securing jobs that they are interested in.

What Are the Types of Training Covered Under NAPS?

Basic training, on-the-job training, and various other types of training are covered under NAPS.

1. Apprenticeship training

NAPS provides hands-on training to ensure individuals are equipped with practical skills to work in various trades and industries.

2. Basic training

For individuals without prior education or training of any sort, basic training is provided before they can move on to on-the-job training. This phase accounts for about 20-30% of the total training duration.

3. Designated trades

Training is provided in specific trades, occupations, or fields in engineering, non-engineering, or vocational courses if notified by the central government.

4. Optional trades

NAPS scheme trains individuals in optional trades, offering flexibility to employers and apprentices.

5. Training duration

The training duration for apprentices in designated trades is one year for ITI pass-outs and two years for fresher/non-ITI pass-outs.

6. Separate programs from graduates, technicians, and vocational apprentices

While NAPS covers all of the above-mentioned apprenticeships, graduate, technician, and vocational apprentices are covered under another scheme administered by the Ministry of Human Resource Development.

How Does the NAPS Online Portal Work?

The NAPS Online Portal allows candidates and employers to register themselves by creating profiles and apply for apprenticeships, while employers can register as a NAPS training provider.

Employers must register themselves on the portal by providing details about their company and the particulars of their apprenticeship program. Post the registration process, employers post apprenticeship opportunities, specifying the trade, duration, and stipend.

The portal helps employers manage applications, issue offer letters, and track the progress of apprentices. Apprenticeship contracts can also be managed on the portal online, ensuring compliance with regulatory requirements. Claims can be submitted online by employers for government funding for apprenticeships through the portal.

Stipends can be disbursed to apprentices through the portal. It also facilitates the evaluation of apprenticeship programs.

What Financial Incentives Does the Government Provide Under NAPS?

The National Apprenticeship Promotion Scheme (NAPS) aims to promote apprenticeship training throughout the country. Initially launched in August 2016, the scheme is currently being continued under its second phase, NAPS-2. Under NAPS-2, the Government shares partial stipend support, limited to 25% of the minimum prescribed stipend payable to apprentices, subject to a maximum of ₹1,500 per apprentice per month during the training period. The stipend support is disbursed directly to the apprentices’ bank accounts through the Direct Benefit Transfer (DBT) mechanism.

The government will reimburse an additional 7500 per apprentice, helping with the management of NAPS in the organization.

How Can Employers Benefit from NAPS?

• Employers are exempted from EPF and ESI contributions
• An environment of learning and continuous development will be built in the company.
• Apprenticeship will save a lot of time and costs for the employer if they have people on board who can train the apprentice.
• Employers will be paid a stipend of 1500 for NAPS training and management of the apprentices, or 25% of the prescribed stipend amount. If you are bootstrapped, you will appreciate this.
• The government will reimburse an additional 7500 rupees for a maximum of 500 hours/3 months per apprentice, helping with the management of NAPS in the organization.

• NAPS proactively funds apprenticeship programs in sectors like manufacturing, agriculture, retail, logistics, IT, and more, encouraging inclusivity and diversity.

• Expenses spent on the recruitment process are reduced as trainees are already working and contributing productively after a short training.
• NAPS helps employers identify talent that can help them evaluate the performance of the trainees and offer them full-time positions if they see fit.
• Training individuals in industry and role-relevant skills can help employers add value to the organisation in the long run.
• Employers can engage in skill training from their CSR funds over and above the minimum requirement under the Apprentices Act.
• Reduces attrition as apprentices tend to form a more loyal relationship with the employer.
• Implementing the NAPS program in an organization enhances the image of the brand as it showcases its commitment to the employment of young people.

How Is NAPS Implemented Across Different Sectors?

Through the National Apprenticeship Promotion Scheme, the Government of India promotes apprenticeship training by sharing the costs of NAPS training with the employer. This will greatly boost the scope of apprenticeship in the country.

• This scheme will, under Pradhan Mantri Kaushal Vikas Yojana, cover all modular employment skills and courses made by the state and central governments.
• The Government has created an online portal with self-service functionality for employers, training providers, and apprentices.
• Applicants can use the online portal to know about the number of apprentice seats available and the vacancies in each company.
• The official portal also helps monitor the apprenticeship training that is happening in each company registered under the NAPS scheme.
• The government makes the payment through this online portal of up to 7500 in benefits to employers, and employers can raise claims for benefits too.
• The government will share up to 1500 as training costs for the training of apprentices for each employer. Two types of training happen: Basic and On-the-job.
• The NAPS scheme is implemented by the Directorate of Apprenticeship Training for central undertakings and establishments operating their business in at least four or more states.
• For state public sector and private establishments, this scheme will be implemented by state apprenticeship advisors.

What Are the Steps to Apply for NAPS?

Here is a simple guide to get started with the NAPS process-

For apprentices-

• They must visit the NAPS portal and register themselves, and create a profile with the necessary details, basic information, educational qualification, skills, and preferences.
• e-KYC must be completed using the Aadhar number and verified via OTP.
• Have a registered bank account and enter the details of the same for stipend disbursements via direct transfer.
• Check for available internships and apply for them based on your eligibility, preferred interests, and location.

For Employers-

• Employers must register themselves on the portal by providing details about their company and the particulars of their apprenticeship program.
• Post the registration process, employers post apprenticeship opportunities, specifying the trade, duration, and stipend.
• The portal helps employers manage applications, issue offer letters, and track the progress of apprentices.
• Apprenticeship contracts can also be managed on the portal online, ensuring compliance with regulatory requirements. Claims can be submitted online by employers for government funding for apprenticeships through the portal.

What Documents Are Required for NAPS Registration?

Employers need a business registration certificate, PAN and TAN details, address proof, employee strength details, bank account information, training program outline, proof of employer identity, and establishment code number.

Apprentices must have an Aadhaar card ready, as it is required for e-KYC (Know Your Customer) verification. They must also hold a valid bank account linked to their Aadhaar to receive stipend payments through Direct Benefit Transfer (DBT).

How Does NAPS Support Skill Development and Employment?

Apprentices swear by it, the Government is very supportive of it, and employers stand by it. NAPS is immensely popular because of the benefits it offers. NAPS is very beneficial to employers, apprentices, and the country in general. There are three main benefits to NAPS:

1. Over time, it will create a network of apprentices who will learn, grow, and even empower others. This will create more skilled manpower in India.
2. This will also give more confidence to the apprentices undergoing training.
3. It will lead to a continuous learning and development environment in companies.
4. Startups and other smaller companies can recruit apprentices if they have even one capable and strong mentor in the company, saving money in the process.

What Are the Common Challenges in the NAPS Scheme?

While NAPS has been successful, some challenges remain:

• Low awareness among businesses and youth.
• Limited participation from MSMEs due to administrative complexities.
• Retention issues – Some apprentices leave before completing training.
• Mismatch in skill training – Some apprenticeships don’t align with job market needs.

Some of the steps that the government can take to address these challenges are-

• Increasing awareness campaigns for businesses and students.
• Simplification of the registration and reimbursement process for MSMEs
• Expanding training programs in emerging industries(AI, IT, renewable energy, etc.).

How Can Organizations Maximize the Benefits of NAPS?

To maximize the benefits of NAPS, organizations can engage a third-party aggregator like Alp Consulting. A TPA can-

• Access the best: Access to quality trainees for an apprenticeship opportunity
• Timely stipends: Timely administration of stipend reimbursement
• Training: Provide training to apprentices, if needed (based on specific profiles)
• Quick registration: Applicants can be easily registered through the apprenticeship portal
• Flexibility: Candidate can be on the stipend of either the employer or of Alp or both
• Covers all trades: Designated trades and optional trades are accessible (defined within the Apprentices Act)

• Submit an apprenticeship contract on the apprenticeship portal on behalf of the employer.
• Submitting the claims of basic training cost in case the employer is a Basic Training Provider (BTP) under NAPS.
• Posting all returns on the portal on behalf of the employer.
• Submit reimbursement claims towards the stipend to the employer along with the attendance particulars.
• Complying with the formalities required for trade apprentices for appearing in All India Trade Tests for Apprentices as and when required.

Conclusion

Having survived the pandemic, companies of today are resilient. What will increase their resilience even more is the influx of younger people, not just apprentices, but people with hope and aspirations.

Our country’s law is built on aspiration, too. Since it mandates that NAPS is compulsory in bigger organizations, the founders and managers of today are coming to terms with this requirement in innovative ways that will be beneficial for them and the country. Apprenticeship is on the rise in India, and thankfully so. It’s a win-win situation for both the employer and the trainees as they both benefit from the NAPS scheme:

The employer, by gaining a loyal apprentice, who will be a valuable addition to the organization, should not forget that they are also being compensated by the government for training the apprentice.

The trainee, by gaining invaluable experience working as an apprentice under a notable mentor in a reputed organization, for a chance at better career growth as well as being paid a minimum monthly stipend.

Frequently Asked Questions (FAQs)

1. What does NAPS stand for?

The full form of NAPS is National Apprenticeship Promotion Scheme. It is a program that helps youngsters who may or may not have enough education get on-the-job training to make them job-ready, as well as help employers build a workforce with individuals with the skills they require for various roles.

2. What is the purpose of the NAPS scheme?

There are several objectives of the NAPS scheme. The primary objective is to promote apprenticeship in the country. It hopes to raise the figure of apprenticeship engagement, promoting awareness of the goodness of apprenticeship and how it can transform the corporate landscape in India.

3. Who can participate in NAPS apprenticeship programs?

Individuals who have completed 14 years of age (18 years in case of Hazardous industries defined under the Apprenticeship Rules), must be a minimum of 5th class pass (for Optional Trade), and must meet the minimum standard of physical fitness for the course.

4. What financial benefits does NAPS offer to employers?

The National Apprenticeship Promotion Scheme (NAPS) aims to promote apprenticeship training throughout the country. Initially launched in August 2016, the scheme is currently being continued under its second phase, NAPS-2. Under NAPS-2, the Government shares partial stipend support, limited to 25% of the minimum prescribed stipend payable to apprentices, subject to a maximum of ₹1,500 per apprentice per month during the training period. The stipend support is disbursed directly to the apprentices’ bank accounts through the Direct Benefit Transfer (DBT) mechanism.

5. How long is the apprenticeship training under NAPS?

The minimum qualification prescribed is an 8th-class pass. What is the duration of apprenticeship training in an optional trade? 06 months to 02 years, depending upon trade.

6. How does NAPS training improve employability?

NAPS training, or the National Apprenticeship Promotion Scheme, significantly improves employability by providing hands-on, industry-specific training, bridging the gap between education and employment.

7. What types of industries can register for NAPS?

Manufacturing, automobiles, retail, financial services, banking, healthcare, hospitality, and various other industries can register for NAPS. To be eligible, organizations must engage apprentices within the range of 2.5% to 15% of the total workforce.

8. What government bodies oversee the NAPS scheme?

Launched by the Government of India, the Ministry of Skill Development and Entrepreneurship (MSDE) in 2016, the NAPS program proactively creates and increases the skilled workforce in India.

9. Can small businesses participate in NAPS?

Micro, Small, and Medium Enterprises (MSMEs) receive higher incentives to hire apprentices. This helps startups and medium-sized enterprises get access to skilled manpower.

10. What is the role of basic on-the-job training in NAPS?

In the NAPS (National Apprenticeship Promotion Scheme) program, based on job training (OJT) plays a crucial role in preparing apprentices for their practical work experience.

11. How has NAPS impacted apprenticeship growth in India?

The hope is to raise the figure of apprenticeship engagement from 2.3 lakh at its inception to 50 lakhs, promoting awareness of the goodness of apprenticeship and how it can transform the corporate landscape in India. The efforts seem to be paying off so far. As of July 2022, the number of apprentices in India was about 13.8 lakh.

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