I completed ITI in 1990. Now I need diploma for promotion. Is it right that after completing ITI diploma duration will be only 2 years?

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Yes, you can take lateral entry to 2nd year of diploma course if you have got passed ITI with more than 50% marks & then the course will be of 2 years duration.

This lateral entry is for those who have passed with 50% aggregate marks in ITI one yr/2 yr Certificate course or 2 yr Diploma from SLIET.