The Bombay Stock Exchange says it will train 6.5 million people in the next 10 years to work in the BFSI (banking, financial services and insurance) sector, the largest employer in the Indian private sector.
BSE has been brought in by the National Skill Development Corporation (NSDC), a public-private partnership created by the finance ministry in 2008, for the job. The pilot project, to include developing a complete work programme, is to begin next month.
NSDC is to extend a grant of Rs 5 crore (Rs billion) for the first three years to BSE for creating a pilot programme, said sources.
BSE would set up at least 200 accredited training centres across the country. Each would train 3,250 people every year. The project will be carried out by BSE's training institute, which till now had been conducting certified courses in capital market studies.
According to a recent estimate by the Indian Banks' Association, public sector banks alone require at least 400,000 new employees in the next two years.
For example, Bank of Baroda is looking to recruit 5,000 employees during the current financial year. India's largest lender, State Bank of India, which hired 20,000 people last year, is planning to hire 10,000 more this year. Union Bank of India plans to hire 4,000 people.
Says a member of the Institute of Banking Personnel Selection, "At present, public sector bank employees' number almost a million but a large chunk of them will retire in the next two years."
Last year, IBPS facilitated the recruitment of 48,000 employees in PSBs.
Madhu Kannan, chief executive officer and managing director of BSE, said: "It is one of the most important social causes. The BFSI sector severely lacks skilled workers and there is a vacancy at every level. We will invite other exchanges, depositories, banks and insurance companies to work together and also invest money, if need be."
So far, NSDC has approved 36 projects, involving 30 companies and six sector skill councils. It has committed funding of Rs 1,016 crore (Rs 10.16 billion) since February 2010 to train five million people. NSDC has identified 20 sectors to train 150 million people by 2022.
The six sector skill councils are in the automotive segment, energy, retail, private security; media, entertainment and animation; and information technology and IT-enabled services.
The SCCs are to create clear definition of qualifications required to perform a given job and to move into advanced positions.