Policy Update
Devshi Satish Mishra
Background
Launched in 2002 by the Ministry of Tourism, the Capacity Building for Service Providers (CBSP) Scheme aims to address skill gaps in the unorganised tourism sector. While institutes like FCIs, IHMs, and IITTM train the organised sector (hotels, restaurants), CBSP focuses on small hotels, roadside eateries, travel/ticketing agencies, dhabas, staff at transport hubs, police, immigration staff, coolies, taxi/coach drivers, monument staff, and guides. It also upgrades the skills of trained workers to boost India’s tourism competitiveness.
The goal is to deliver high-quality, internationally aligned tourism services through education, training, and certification for fresh entrants, current practitioners, trainers, planners, and rural/artisan communities, with programmes updated to meet changing industry needs.
Functioning
The Capacity Building for Service Providers (CBSP) scheme operates as a comprehensive skill development and certification framework targeting both the unorganised and organised sectors of India’s tourism and hospitality sector. The Ministry of Tourism (MoT) implements the scheme through a network of central, state, and private agencies, including the following:
- India Tourism Offices
- Institutes of Hotel Management (IHMs)
- Food Craft Institutes (FCIs)
- Indian Institute of Tourism & Travel Management (IITTM)
- National Council for Hotel Management and Catering Technology (NCHMCT)
- State Tourism Departments and Corporations
- India Tourism Development Corporation (ITDC), and registered private training organisations
Programme Structure
According to the latest guidelines issued in 2018, the scheme has been divided into four main categories for training. They are as below:
| Category | Programme(s) | Details |
| Skilling Programme (Capacity Building) | Hunar Se Rozgar Tak (HSRT) | For fresh entrants to the job marketMinimum 200 hours of training (including practical/on-the-job)Covers hospitality and tourism skillsAims for employment or self-employment |
| Re-skilling Programmes (Capacity enhancement) | Skill Testing & Certification | For existing service providers (minimum 16 hours of training)Helps formalise skills through independent third-party certificationMay lead to improved wages/working conditions or shift from informal to formal jobs |
| Guide Training | Induction Training program for regional-level guides | Conducted by IITTMMoT funds @ ₹750 per trainee/dayIncludes advertising, entrance exam, faculty fees, hall/equipment hire, refreshments, etc |
| Refresher level course for regional level guides | Similar cost coverage and purpose as above | |
| Language courses for Guides and other service providers | 3-month course, cost per trainee ₹11,100, covering fees, course material, uniform, tool kit, meals, misc. Plus 4 days behavioural/attitude training | |
| Other Sectoral Programmes | Training for Promotion of Rural Tourism | 3-6 months, ₹20 lakh per village, focuses on product presentation, etiquette, behaviour, etc |
| Tourism Awareness Programmes | 2-6 days, customised for different target groups (dhaba staff, drivers, immigration/police, hotel staff, shopkeepers, foreign language basics) | |
| Training of Teachers, Administrators, and Planners | 15-30 days, ₹5,000 per trainee | |
| Training of Trainers | Same as above, certified by MoT |
The beneficiaries range from organised sector workers, such as hotel and restaurant workers, to unorganised sector workers, such as dhaba staff, taxi/coach drivers, tourist police, monument staff, shopkeepers, and rural artisans, to government officials and planners involved in tourism service delivery. Courses are delivered either at institutional premises, such as IHMs, FCIs, etc., or on-site at workplaces, with practical and on-the-job components.
Key Operational Guidelines under CBSP
| Provision | Details |
| Batch Size | 40 participants for Guide Training & Tourism Awareness programmes.20 participants for hands-on/practical courses |
| Selection Process | Transparent selectionThe s person cannot be trained twice |
| Priority Groups | The majority of the unorganised sector.Special preference to roadside food vendors, dhabas, and kiosks at tourist sites.Rural focus on artisans, craftsmen/women, and those in eco-tourism |
| Certification | Certificates are issued by the training agency to all who complete the programme |
| Financial Compliance | Maintain proper accountsSubmit Utilisation Certificates for funds to MoTTrainer honoraria must follow scheme-prescribed limits |
| Training Schedule | Prefer evenings/public holidays to use the infrastructure fully and attract participants |
| Attendance Rule | Minimum 80% attendance for certificate or final test eligibility |
| Programme Planning | Agencies must prepare a training calendar and send proposals to MoT in advanceFunds are released only after MoT approval |
| Reporting Requirements | Keep records of all programmesSubmit Quarterly Progress Reports showing physical and financial performanceFunds are released only after UC for earlier instalments |
| Aadhaar & Payment | All trainees and trainers must be Aadhaar-linked in records and bank accountsStipends transferred only via PFMS to Aadhaar-linked accounts |
| Feedback & Documentation | Collect digital/manual feedback from participants at the course endUpload video clips and photos of training to MoT’s Programme Monitoring Unit during programme execution |
Timeline and Evolution of the Scheme
Achievements and Challenges: A Critical Analysis of the Scheme’s Performance
Achievements
- Since its inception, CBSP has trained over 5.54 lakh individuals nationwide, including 25,250 in Uttarakhand.
- Employment outcomes: 59,210 placed; others in self-employment, entrepreneurship, or higher studies.
- Inclusive outreach: Trainings are advertised by central and empanelled institutions, with a reach that includes women and youth in marginalised, hilly, and tribal regions.
- 2010 Year-End Review (MoT)
- HSRT: 6-8 week courses in Food Production & F&B Services for youth under 25; 2,700 trained, 1,000 under training, target 5,500 more.
- Skill Certification: 5-day orientation & testing for hospitality workers; 1,700 certified, target 5,500 more.
- National Awards for Excellence in Hospitality Education: 22 students, 10 teachers, 19 IHMs honoured; special awards to key contributors.
- Delhi training initiative: 962 guest house owners & 1,472 staff trained in standards & soft skills (IHM Pusa).
- 2009 Initiatives under CBSP
- HSRT: Target to train around 5,000 youth in Food Production & F&B Services.
- Skill Certification: Target around 5,000 certifications for existing hospitality workers.
- Support for new IHMs & FCIs and modernisation of existing institutes to address manpower shortages.
- According to the March 2023 PIB, the Ministry of Tourism (MoT) runs regular skill programmes to build manpower for the hospitality industry. 7 skilling, re-skilling, and up-skilling programmes are conducted under the CBSP Scheme:
- Hunar Se Rozgar Tak (HSRT) – 11 short-duration hospitality & tourism courses; compliant with MSDE Common Norms.
- Entrepreneurship Programme – upskilling for micro/small business start-ups.
- Skill Testing & Certification – re-skilling for existing service providers in four hospitality trades.
- Tourism Adventure Courses – re-skilling to promote region-specific adventure skills.
- Linguistic Tourist Facilitators – upskilling in foreign languages.
- Tourism Awareness/Sensitisation – for existing service providers.
- Destination-Based Skill Development – capacity building for service providers near tourism sites to boost employability.
CAG reports on this scheme are available only for a few discrete years and states. The state-wise information is as follows:
- Odisha
- Hunar Se Rozgar Tak (HSRT) Scheme (2010-2014)
- Financial assistance of ₹9,375 to ₹12,012 per trainee for 6-8 weeks’ training, twice a year.
- 53% of the training target met (3,429 persons trained).
- Employment opportunity created for 3,192 persons (49% of the target)
Source: CAG reports
Note: The amount is in crores (₹).
- Jammu and Kashmir
- GoI sanctioned ₹4.83 crore in February 2008, and ₹2 crore was released for the Bhagwati Nagar Jammu site for the Food Craft Institute to be built.
- ₹27.50 lakh released for short-term hospitality courses at a make-shift centre in Bhagwati Nagar.
- Meghalaya
- MoT sanctioned ₹4.75 crore (March 2009), released ₹2 crore as the first instalment for setting up FCI, Tura.
- Two diploma courses started in 2013-14 with two faculties (sanctioned: six).
| State | Year | Implementing Agency | Funds Released |
| Himachal Pradesh | 2018-2019 | Food Craft Institute, Dharamshala | ₹0.10 crore |
| Institute of Hotel Management, Kufri | ₹0.91 crore | ||
| Institute of Hotel Management, Hamirpur | ₹141.50 crore | ||
| Odisha | 2009-2010 | – | 0.14 crores |
| 2011-2012 | – | 0.16 crores | |
| 2013-2014 | – | 1.6188 crores | |
| Pondicherry | 2009-2010 | – | 0.14 crores |
| Punjab | 2009-2010 | Institute of Hotel Management, Catering and Nutrition, Gurdaspur | 0.1623 crores |
| Meghalaya | 2010-2011 | Food Craft Institute, Tura | 0.105 crores |
| 2013-2014 | Food Craft Institute, Tura | 0.266 crores |
Source: State-wise CAG reports
Challenges
- Odisha – HSRT Scheme Implementation Issues
- Could achieve only 53% of the training target and 49% placement target.
- ₹3.29 crore of central financial assistance for 2011-12 was not availed due to non-submission of utilisation certificates (UCs) on time.
- Delay in sanctioning funds by the MoT disrupted the second phase of the programme.
- Deficient monitoring and internal control mechanisms in OTDC/DoT.
- Jammu & Kashmir – Food Craft Institute
- Delays in land acquisition decisions for two identified sites (Bhagwati Nagar, Dhummi-Akhnoor) meant the institute was not established as of March 2013.
- Land transfer for construction only took place in December 2012.
- ₹1.73 crore of funds remained unutilised; ₹2.83 crore of assistance from GoI was not availed for over five years.
- Delay deprived youth of hospitality skill development and employment opportunities.
- Meghalaya – FCI, Tura
- Delay in identifying and transferring suitable land — final site handed over in January 2011 instead of March 2010.
- Construction, originally due for completion by September 2010, remained incomplete as of August 2013.
- Delay of over three years from the original schedule; only two of six sanctioned courses started.
- General Issues Across Various States
- Frequent delays in fund release from the MoT.
- Non-submission or delayed submission of UCs is preventing the release of further instalments.
- Underutilisation of funds despite high sanctioned amounts.
- Reduced the scope of training due to incomplete infrastructure and a lack of manpower sanction.
- The targets are not being met. This could be understood with the difference between outcomes in 2009 and 2010 from the achievements section.
Way Forward
As per the shortcomings pointed out in the CAG reports of the above states, the following must be taken into consideration for the fulfillment of the scheme’s purpose:
- Conduct baseline surveys in all states to identify potential tourist destinations.
- Carry out feasibility analysis for each location before classification as a tourist destination.
- Establish a centralised, standardised system for accurate and timely tourist arrival data.
- Integrate real-time data sharing between states and the Ministry of Tourism.
- Strengthen coordination between different offices of the Department of Tourism within and across states.
- Develop joint action plans with shared accountability for tourism development.
- Implement periodic internal reviews to track progress and address gaps highlighted in CAG reports.
- Link financial assistance to measurable outcomes such as survey completion, data quality, and inter-office collaboration.
References
Comptroller and Auditor General of India (CAG). (2010). Capacity Building for Service Providers [Performance Audit Report]. Government of India. Retrieved from https://cag.gov.in/en/audit-report?ts=contains&title=Capacity+Building+for+Service+Providers+>=&udt=&state=&state%5B%5D=&lbt=§or=§or%5B%5D=&report_type=&report_type%5B%5D=54&od=&yrf=2010&yrt=
Comptroller and Auditor General of India (CAG). (2011). Capacity Building for Service Providers [Performance Audit Report]. Government of India. Retrieved from https://cag.gov.in/en/audit-report?ts=contains&title=Capacity+Building+for+Service+Providers+>=&udt=&state=&state%5B%5D=&lbt=§or=§or%5B%5D=&report_type=&report_type%5B%5D=54&od=&yrf=2011&yrt=
Comptroller and Auditor General of India (CAG). (2012). Capacity Building for Service Providers [Performance Audit Report]. Government of India. Retrieved from https://cag.gov.in/en/audit-report?ts=contains&title=Capacity+Building+for+Service+Providers+>=&udt=&state=&state%5B%5D=&lbt=§or=§or%5B%5D=&report_type=&report_type%5B%5D=54&od=&yrf=2012&yrt=
Comptroller and Auditor General of India (CAG). (2013). Capacity Building for Service Providers [Performance Audit Report]. Government of India. Retrieved from https://cag.gov.in/en/audit-report?ts=contains&title=Capacity+Building+for+Service+Providers+>=&udt=&state=&state%5B%5D=&lbt=§or=§or%5B%5D=&report_type=&report_type%5B%5D=54&od=&yrf=2013&yrt=
Comptroller and Auditor General of India (CAG). (2014). Capacity Building for Service Providers [Performance Audit Report]. Government of India. Retrieved from https://cag.gov.in/en/audit-report?ts=contains&title=Capacity+Building+for+Service+Providers+>=&udt=&state%5B0%5D=&lbt=§or%5B0%5D=&report_type%5B0%5D=54&od=&yrf=&yrt=&page=2
Comptroller and Auditor General of India (CAG). (2015). Capacity Building for Service Providers [Performance Audit Report]. Government of India. Retrieved from https://cag.gov.in/en/audit-report?ts=contains&title=Capacity+Building+for+Service+Providers+>=&udt=&state=&state%5B%5D=&lbt=§or=§or%5B%5D=&report_type=&report_type%5B%5D=54&od=&yrf=2015&yrt=
Comptroller and Auditor General of India (CAG). (2021). Capacity Building for Service Providers [Performance Audit Report]. Government of India. Retrieved from https://cag.gov.in/en/audit-report?ts=contains&title=Capacity+Building+for+Service+Providers+>=&udt=&state=&state%5B%5D=&lbt=§or=§or%5B%5D=&report_type=&report_type%5B%5D=54&od=&yrf=2021&yrt=
Government of India, Ministry of Tourism. (2024). Annual Report 2024-25. Retrieved from https://tourism.gov.in/sites/default/files/2025-02/Ministry%20of%20Tourism%20Annual%20Report_2024-25
Government of India, Ministry of Tourism. (2022, August 1). Capacity building for service providers in tourism sector [Lok Sabha Unstarred Question No. 2362]. Retrieved from https://tourism.gov.in/sites/default/files/2021-12/usq%202362%20%20for%2013122021.pdf
Ministry of Tourism. Scheme of Capacity Building for Service Providers (Institutes). Retrieved from https://tourism.gov.in/schemes-and-guidelines/schemes/scheme-capacity-building-service-providers-institutes
Ministry of Tourism, Government of India. (2021). Notes on Demands for Grants, 2021-2022 (No. 98/Ministry of Tourism). Retrieved from https://dea.gov.in/detail-demands-for-grants
Ministry of Tourism, Government of India. (2024). Notes on Demands for Grants, 2024-2025 (No. 99/Ministry of Tourism). Retrieved from https://dea.gov.in/detail-demands-for-grants
Press Information Bureau (PIB). (2009, November 04). Background note on Ministry of Tourism on the occasion of Economic Editors’ Conference. Government of India. Retrieved from https://www.pib.gov.in/newsite/erelcontent.aspx?relid=53827
Press Information Bureau (PIB). (2010, December 25). Major Initiatives and Achievements of Ministry of Tourism in the Year 2010. Government of India. Retrieved from https://www.pib.gov.in/newsite/erelcontent.aspx?relid=68697
Press Information Bureau (PIB). (2023, March 13). Skill programmes of hospitality education is a regular and ongoing initiative of Ministry of Tourism. Government of India. Retrieved from https://www.pib.gov.in/PressReleasePage.aspx?PRID=1906476
Press Information Bureau (PIB). (2025, August 07). Press note on Capacity Building for Service Providers Scheme. Government of India. Retrieved from https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=2153598
About the Contributor
Devshi Satish Mishra is a Research Intern at IMPRI and a student at the University of Delhi pursuing Economics Honours.
Acknowledgment: The author sincerely thanks the IMPRI team for their valuable support.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organization.
Read More at IMPRI:
Land-Use Change and the Challenge of Urban Planning in India
