Rural Self Employment Training Institutes

Lakhs of youth are entering the job market every year in this country but are unable to find suitable employment. Non-availability of adequate  employment opportunities in the organized & unorganized sectors is one of  the serious challenges the country is facing. In such a scenario, the need for promoting self employment for the unemployed rural youth, particularly those  below the poverty line, and periodic skill up gradation to keep them abreast of latest technologies, need not be overstated. Once trained appropriately, the youth will launch profitable micro-enterprises and enhance their own standards of living and thereby contribute to the overall national economy. They can also feed the services sector, both within the country and abroad.

With the aim of mitigating the unemployment problem among the youth, a new initiative was tried jointly by Sri Dharmasthala Manjunatheshwara Educational Trust, Syndicate Bank and Canara Bank in 1982 which was the setting up of the “RURAL DEVELOPMENT AND SELF EMPLOYMENT TRAINING INSTITUTE” with its acronym RUDSETI near Dharmasthala in Karnataka. Several centers of the RUDSETI are already operating successfully now. Since the RUDSETI has today become a replicable model, the MoRD proposes to support establishment of one RUDSETI type of institution in each district of the country to tap the rural BPL youth from the rural hinterland.

Objectives of RSETIs

1. Rural BPL youth will be identified and trained for self-employment.
2. The trainings offered will be demand driven.
3. Area in which training will be provided to the trainee will be decided after assessment the candidate’s aptitude.
4. Hand holding support will be provided for assured credit linkage with banks.
5. Escort services will be provided for at least for two years soon to ensure sustainability of micro enterprise trainees.
6. The trainees will be provided intensive short-term residential self-employment training programmes with free food and accommodation.

Sponsorship

The State Government in consultation with the banks in SLBC, assign districts, preferably, to the respective Lead Banks in the States to set up RSETIs.  There shall be single bank’s sponsorship of the RSETI in a district to avoid any overlapping / disruption in management. Land for setting up the RSETIs is allotted to the concerned Banks, free of cost, by the State Governments. The construction of the building for the RSETIs is undertaken by the concerned Bank, Trust/Society. In case the banks so desire they may request the State Government for assistance for construction.  Till the time a suitable land is identified and building constructed the RSETIs start operation from hired premises.

Programme Structure

Each RSETI offers about 30 to 40 Skill Development Programmes in a financial year in various avenues. All the programmes are of short duration ranging preferably from 1 to 6 weeks. A general classification of the types of programmes is as follows:

1. Agricultural Programmes - Agriculture and allied activities like Dairy, Poultry, Apiculture, Horticulture, Sericulture, Mushroom cultivation, floriculture, fisheries, etc.
2. Product Programmes - Dress designing for men and women, Rexine utility Articles, Agarbathi manufacturing, Foot ball making, Bags, Bakery Products, Leaf Cup making, recycled paper manufacturing, etc.
3. Process Programmes - Two Wheeler repairs, Radio / TV repairs, Motor rewinding, electrical transformer repairs, irrigation pump-set repairs, tractor and power tiller repairs, cell phone repairs, Beautician Course, Photography & Videography, Screen Printing, Photo Lamination, Domestic Electrical appliances repair, Computer Hardware and DTP.
4. General Programmes - Skill development programmes for women etc.
5. Other Programmes - related to sectors like leather, construction, hospitality and any other sector depending on local requirements.

Administrative Costs

1. Land is allotted by the concerned State government, free of cost, with nominal registration expenses. The sponsoring banks are free to choose the mechanism of the land transfer depending upon their own corporate culture and philosophy.
2. Government of India provides one time grant assistance to the RSETIs, up to a maximum of Rs. 1.00 crore for meeting the expenditure on construction of building (minimum covered area should be 8000 sq feet) and furniture for the same. This assistance would also be provided if Banks already have land and wish to start a RSETI there. One time funding support, up to a maximum of Rs. 1 crore, can also be provided to existing RUDSETI type Institutions for upgrading present infrastructure up to the minimum standards prescribed in these guidelines. The procedure for fund transfer shall be notified separately.
3. In situations where the land transfer is likely to take time due to lengthy procedures, the Banks may start functioning immediately from hired premises. Rent for hiring of premises may be borne up to a maximum of Rs. 10.00 lakh, for a period not exceeding three years, out of the Rs. 1.00 crore grant of Government of India.
4. MoRD, through the DRDAs, provides support towards cost of training for rural BPL candidates to the sponsor Banks at the rate of Rs. 200 per candidate per day to a maximum of Rs 4000 for training up to 4 weeks duration and maximum of Rs. 5000 for training of longer duration. Other recurring costs for the RSETIs i.e., that of the training expenses, faculty salaries, logistics, etc., is borne by the sponsoring banks or through other sponsoring organisations like SIDBI or NABARD.

Source: NACER

Related resources

1. Directory of RSETIs