|III. IT HUMAN RESOURCE DEVELOPMENT
43. IT companies will be encouraged to play a
significant role in IT education, for which the following steps will be taken:
- IT HRD, including IT Education and Training,
in formal as well as non-formal sector, will be treated as a Service industry. For this
purpose, in the IT Action Plan (Part I) approved by the cabinet and notified in the
Gazette of India, Extraordinary, No. 160, Part I, Section I, dated July 25,
1998, wherever IT Services" are mentioned, they shall be redefined to include
IT manpower development including IT Education and Training. As the IT HRD companies have
presently the greatest propensity for becoming Indian multinational companies around the
world, the provisions of the IT Action Plan Part-I Policy Nos. 19, 21, 23 to 25, 27 to 42,
45 to 53, 55 to 57, 58 to 80, 88, 96, 98 and 99 fully apply to IT HRD companies, public
institutions, autonomous institutions and private societies, with the following additional
- IT Service' and IT enabled service' will ipso
facto include IT HRD/IT Education/IT Training services.
- IT Software will ipso facto include IT Training
materials in Program/Program Text/ Self-tutoring/ interactive-tutoring/
computer-aided-teaching/ computer-aided learning, software and associated databases.
- Computer networks will ipso facto include networks as
carriers for distance learning networks and satellite based/ optical fibre cable based
delivery mechanism for Education-to-Home (ETH) services/ Education-to-Community Centres
(ETCC)/ data broadcast systems and services delivering educational contents and
- STPs and Private STPs will ipso facto include Technology
parks combining any subset of services at (a), (b) and (c) above.
- IT Software and IT service exporters and joint ventures/
purchase of companies abroad will ipso facto cover IT HRD/ Education/ Training Services
export and/or NRI companies primarily registered in India or with India as the primary
operational base or having headquarters in India.
- Banks and Financial Institutions (FIs) will
be allowed to float special bonds, to be called Vidya Dhan (Education Bonds), to raise
capital for investment in IT Education and Training sector. The investment in Vidya Dhan
will be treated at par with Infrastructure Bonds.
- Banks and FIs will make this fund available
to IT HRD companies and institutions on low interest rates as applicable to priority
- Entrepreneurs, including NRIs, will be
offered special financial packages, including venture capital, to set up IT education
facilities by Banks and FIs.
- IT HRD companies will engage themselves in
industry oriented as well as basic research in specific areas relevant to achieving the
growth targets set for the industry.
- A Vidya Kalyan scheme will be introduced to
integrate the infrastructure that the state can provide with the working capital (both
physical and human) that private enterprise can offer to optimize available national
resources for IT education. Under this scheme, public funded institutions and academic
institutions in the country offering IT education in the formal sector, such as IITs,
RECs, universities, colleges, polytechnics and ITIs etc. may tie up with IT industry to
jointly offer education and training programs. For this purpose, they can float an IT
Education and training company under section 25, or as a Society, wherein the contribution
of the academic institution in terms of infrastructure, such as building and faculty and
other resources, will be treated as its equity to this company. National Council for IT
Education (NCITE), to be established by AICTE, as approved in IT Action Plan (Part
I), will prepare suitable guidelines to facilitate this.
- Public funded IT institutions will be given
adequate autonomy to attract and utilize community funds, and fees will be linked to
national per capita income so that they get automatically upgraded every year.
- All Companies, in IT as well as other
sectors, will be encouraged to set aside 6% of their value added revenue (sum of salaries,
perquisites and net profit) to support IT HRD sector in offering IT as well as IT-enabled
education through investment in infrastructure establishment/ upgradation in educational/
training institutes, providing endowment, catering to the recurring expenditure of the
institute such as on salaries/ honorarium to faculty, scholarships to students, providing
part-time instructors, etc. These companies will have full freedom to allocate such funds
to any institution of their choice and to be utilized specifically in the manner desired
- Government in association with IT HRD
companies will aim to achieve 100% IT literacy at senior secondary level (10 + 2) in 5
years and at secondary level in 10 years.
- All institutes offering engineering
education, including Polytechnics and ITIs, will ensure that within 3 years all
engineering students in the country will acquire IT knowledge to be able to serve in IT
enabled Services sector besides serving in IT industry directly.
44. To foster and encourage HRD Enterpreneurship, the
following promotional measures will be taken:
- IT HRD sector will aim to achieve an export
target of US $5 billion by 2005. Towards this objective, government will support leading
Indian companies in this sector to help them emerge as large Multinational Companies
- Templates of Turnkey Structures
will be prepared jointly by the government, IT industry and the IT HRD companies to evolve
structure for facilitating emergence of Indian MNCs in IT HRD. A tripartite committee will
be set up by the government to develop such templates.
- Institutes of national importance such as
IITs and IIITs will be allowed to establish joint ventures with IT HRD companies in their
efforts in emerging as Indian MNCs in this sector.
- With a view to bring stability in the sector
by minimising the rate of attrition of trained manpower from companies due to shortage of
skilled manpower in the industry and be able to plan a massive growth in domestic as well
as global market, IT HRD companies will be allowed to offer special financial incentives
to its employees such as Employee Stock Option (ESOP) and Sweat Equity as per
recommendations 58 and 59 in the IT Action Plan (Part-II).
- Special IT HRD Enterpreneurship Training
Programs will be organized by the IT HRD sector in collaboration with IIMs and other
leading management institutes for entrepreneurs and financial institutions.
45. The following Academic Policies will be put in place:
- IT HRD policy will be so evolved and
implemented that it is effectively affordable even by the poor and should cover all parts
of the country including rural areas.
- Special programs will be instituted to
support/encourage higher end of IT education.
- IT HRD companies/institutions can seek
affiliation to one of the Universities, Central, State, foreign university, or any other
such institutional structure, existing or which may be created from time to time, for
award of degrees. In case of affiliation to a foreign university, a two stage procedure
will be followed: Association of Indian Universities (AIU) will prepare a list of eligible
countries, on strict quality considerations, with whose universities affiliation can be
sought by Indian IT HRD companies/institutes. The degree for which affiliation is being
sought with a university in any of these AIU shortlisted countries, should have been
accorded formal recognition in its own country for academic and employment purposes.
- Institutes of national importance such as
IITs and IIITs will be encouraged to establish Virtual Institutes, particularly in the
area of advanced Post Graduate and Continuing Education programs in IT, to support IT
education and Research at other institutions in the country.
- Self-financing colleges will be permitted
broadly to admit only the number that can find employment. In government institutions,
state support should be limited in the same manner to the number that can find employment.
- Apart from training in software and hardware
skills, increasing attention will be paid to education in basic principles of computer
- The reward package for IT professionals
(particularly teachers) should be upgraded to avoid temptation to migrate.
- The Institute of Computer Professionals of
India (ICPI), as envisaged in the IT Action Plan (PartI) and to be nucleated by
NASSCOM with initial financial support from the industry and the government, will function
with various accreditation institutions as its members on voluntary basis.
- The IT HRD companies/institutions will be
expected to widely disseminate information on academic performance of their students as
well as their placement in the industry. These institutions will maintain a website, of
their alumni and the kind of employment secured by them as an indicator of the value of
the education imparted by them. A system of credit rating agencies is expected to evolve
in the country for evaluating IT HRD institutes.
- Selected R&D laboratories and technical
organizations with requisite infrastructure in the country will be given accreditation for
IT HRD programs, particularly at the post graduate level for high specialisation areas of
- A special program will be organized to
develop instructional material employing IT as a tool in all courses and at all levels
from elementary education upwards.
- Nationwide aptitude tests, on the pattern of
GATE, will be conducted by NCITE and other similar organizations as per guidelines framed
by AICTE, at different levels to evolve a process of all India ranking of students with
aptitude for IT education. The percentile score in these tests will be used as short
listing criterion for admission to various IT HRD programs in the country. Preferably, the
percentile rank in the institution in which the candidate has studied should also be used
as an additional short-listing criterion so that the handicap, students have in backward
areas, will be mitigated. As these aptitude tests will not be rejection tests (the way
entrance examination tests presently are), it is permissible to make questions public in
these tests through a large question bank.
- The current system of terminal examination
will be reviewed for IT courses. Instead continuous evaluation that will test the multiple
dimensions of intelligence needed by IT professionals will be allowed.
- NCITE and ICPI will establish and promote
national IT Competency Examinations (ITCEs) to certify competency level of the students in
various areas and at various levels. Regulatory systems will be evolved to monitor the
quality of courses in such a manner that they will not curb in any way individual
- NCITE will frame guidelines in such a manner
so as to provide administrative, financial and academic autonomy to state-run and
state-aided institutions, in the manner applicable to IITs, to devise their own courses
and modify them as frequently as progress in the field demands.
- Students will have freedom to accumulate
grades in various subjects from different IT HRD companies/institutes and then appear for
completing IT Competency Examinations.
- Professional bodies such as CSI, IETE and
India Chapters of ACM and IEEE, etc will be invited by NCITE and ICPI to play an active
role in collaboration with the industry in the process of evolving professional ethics and
standards in IT HRD.
- Employers organizations like NASSCOM,
MAIT, CII, FICCI, ASSOCHAM will also be involved in setting standards for the output of
46. The following National Infrastructure will be created
for IT HRD:
- A high-speed national network backbone,
referred to as Vidya Vahini, will be established within the next 3 years by the government
and the industry as a joint venture.
- All investments in Vidya Vahini will be
treated at par with investment in infrastructure sector and will thus be eligible for all
the financial schemes as applicable to infrastructure sector.
- Private sector will be encouraged to invest
in the arteries of Vidya Vahini at local and regional levels. Such investments will also
be treated as made in Vidya Vahini and will entitle the company to avail all the relevant
- IT HRD companies will be allowed to use
satellite and cable TV based networking, including Data Broadcast and Direct To Home (DTH)
services over C band, Extended C band, Ku band, Ka band and other emerging satellite
systems, for broadcasting educational and training programs and services over these
networks without any licensing.
- The companies specializing in producing
contents for Vidya Vahini, such as network based educational programs and services will be
treated as educational companies at par with IT HRD companies.
- All imports for establishment of
infrastructure, including hardware and software tools and preparation of educational
programs and services, for IT HRD will be covered under R& D projects.
- Companies registered under Section 25 for IT
HRD will be considered for automatic imports under R & D projects on self-declaration
basis without requiring a separate certification by a government agency.
47. The following Financial Schemes will be made available:
- IT HRD companies covered under Small Scale
sector will be allowed to have investment from companies in large sector without any
- All investments, including equity
investment, by individuals/companies in IT HRD companies/institutions will be eligible as
deductible expenses to the same extent as available with respect to R&D
- Investments made by companies on IT
education and training of their employees will also be eligible as deductible expenses to
the same extent as in (ii).
- All royalty payments received on account of
IT education and training services in STPI and S-BIT scheme of IT Action Plan (Part
I) will be covered under Section 10A of Income Tax act.
- Budgetary provision will be made to enable
government organizations to donate computer systems including the software after two years
of procurement to the recognized IT HRD institutes, as per guidelines that will be
prepared by NIC and DOE.
- Students opting for IT HRD programs will be
provided loans by banks and financial institutions at low interest rates by treating this
as a "priority area" for lending.
- Endowment schemes offered by IT and user
companies in academic institutes will provide flexibility to offer higher amounts to
faculty under the scheme compared to normal salary structure.
48. To encourage the worldwide trend of employment of women
in the IT Sector, the following promotional measures will be taken:
- Telecommuting will be allowed to
professionally qualified women in IT to facilitate their continued association with their
work place in case they are not in a position to attend to the job in office on a regular
basis due to family constraints. Such women will be offered special loans/financial grants
by the companies to set up infrastructure at their homes to be able to telecommute.
- Virtual institutes will evolve special HRD
programs to help educated women to enter the field of IT-enabled services.
- Banks and FIs will offer special financial
packages on a pro-active basis to support enterprising and professionally qualified women
to set up home based IT services in various areas of IT-led economic activities.