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Introduction

National Skill Development Corporation (NSDC) was established as a Not-For-Profit Public Limited Company. It was set up by the Ministry of Finance under the Public Private Partnership (PPP) model. The Government of India through the Ministry of Skill Development & Entrepreneurship (MSDE) holds 49% of the share capital of NSDC, while the private sector has the balance 51% of the share capital.

The primary objective of the NSDC is to promote skill development by synergizing together large, quality and for-profit vocational institutions. NSDC shall provide funding to build scalable and profitable vocational training initiatives. It wants to create a support system which focuses on quality assurance, information systems and Train the Trainer academies, either directly or through partnerships.

NSDC acts as a point of contact for enabling skill development by providing funding to enterprises, companies and organizations that provide skill training. It also designs and develops models to enhance, support and coordinate private sector initiatives. 21 sectors that come under NSDC’s purview and understanding their viability will make every sector attractive to private investment.

Official figures for 2020

538

NSDC Training Partners

10,373

Training Centres

1500+

Job Roles

37

Sector Skills Councils

29 + 6

Presence

20.45 Lakhs

Trained

1.86 Lakhs

Placed

What is the objective of NSDC?

NSDC was primarily set up with the objective of fulfilling the growing need for skilled manpower across sectors around the country. It aims at narrowing the existing gap between the demand and supply of skills. It strives to achieve this goal by nurturing private sector initiatives in skill development programmes and to provide funding for such initiatives.

  • To create and develop necessary frameworks for standards, curriculum and quality assurance that will help in upgrading necessary skills to international standards through significant industry involvement.
  • The primary goal is to bring in the private sector entities and coordinate initiatives for skill development through appropriate Public-Private Partnership (PPP) models; Support and enhance significant operational and financial involvement from the private sector.
  • Play the role of a ‘Market-Maker’ by arranging funds, particularly in sectors where market mechanisms are ineffective or missing.
  • Identify and prioritize initiatives that can have a multiplier or catalytic effect as opposed to one-off impact.

What does the NSDC do?

The NSDC encourages and facilitates training programmes, under Public-Private Partnerships, that have the potential for skill development with substantial results for the trainee. It would like to increase the number of upskilling or reskilling among the citizens through partnership efforts rather than introducing new schemes.

The NSDC plays the following 3 key roles: 

Funding and Incentivising: This could be one of the key roles of NSDC for the near future. It is involved in selecting and supporting private sector initiatives through various financial assistance like loans or equity, providing grants and other financial assistance like tax breaks, etc. The exact nature of funding, whether equity, loan or grant, is determined based on the viability or attractiveness of the segment and, to some extent, the type of player (for-profit private, non-profit industry association or non-profit NGO). Eventually, NSDC wants to establish strong and viable business models and reduce its grant-making role.

Enabling Support Services: The NSDC will assist the Skill Development Institutes with a number of inputs or support services such as curriculum, faculty training standards, quality assurance, technology platforms, student placement mechanisms and so on. It also plays a significant role in setting up standards and accreditation systems in partnership with industry associations.

Shaping/Creating: Gradually, the NSDC wants to take an active part in seeding and providing momentum for large-scale participation by private players in skill development. NSDC will identify critical skill groups, develop models for skill development and attract potential private players and provide support to these efforts.

Who are the Partners in this skill development initiative?

NSDC partners with various stakeholders in creating and developing an ecosystem for skill development;

Private Sector – Private Sector partners play an important role in awareness building, capacity creation, loan financing, creation and operations of Sector Skill Councils, assessment leading to certification, employment generation, Corporate Social Responsibility, World Skills competitions and participation in Special Initiatives like Udaan, focused on the J&K.

International Engagement – They are players in investments, technical assistance, transnational standards, overseas jobs and other areas.

Central Ministries – They primarily participate in flagship programmes like Make in India, Swachh Bharat, Pradhan Mantri Jan Dhan Yojana, Smart City, Digital India and Namami Ganga, among many others.

State Governments – Their role is into development of programs and schemes, alignment to NSQF and capacity building, operationalization of program, capacity building efforts among others.

University/School Systems – They are very important for developing Vocational Education through specific training programs, evolution of credit framework, entrepreneur development, etc.

Non-profit Organizations – They help with capacity building of marginalized and special groups, development of livelihood, self-employment and entrepreneurship programs.

Innovation – NSDC shall provide support to early-stage social entrepreneurs working on innovative business models to address gaps in the skilling ecosystem, including programs for persons with disability.

Schemes & Initiatives under NSDC

Apprenticeship Training – The apprentice signs a contract of apprenticeship with an establishment to undergo apprenticeship training. They gain classroom (theory) learning for a short period, followed by on-the-job (practical) training. The initiative is implemented by Skill India, through its National Apprenticeship Promotion Scheme (NAPS). It provides an on-the-job-training opportunity to the youth across different sectors and enables them to earn a better livelihood.

PMKVY - Pradhan Mantri Kaushal Vikas Yojana is a scheme under the Ministry of Skill Development & Entrepreneurship (MSDE). This Skill Certification Scheme aims at encouraging a large number of Indian youth to equip themselves with industry-relevant skill training so that they are qualified at securing the right job to support their livelihood. The scheme also assesses and allows experienced individuals for a certification under Recognition of Prior Learning (RPL). The scheme offers both training support and monetary support as is deemed necessary.

Pradhan Mantri Kaushal Kendra – PMKK are envisaged to be state-of-the-art Model Training Centres that will provide competency-based skill development training. NSDC will provide funding support to set up such Model Training Centres. It will offer concessional secured loan funding per centre, up to 75% of the project investment. The funding can be used only to cover expenditure related to training infrastructure including purchase of plant, machinery & equipment, training aid and other associated items and civil work including setting up prefabricated structures and retrofit existing structures. NSDC will also provide operational support by assuring a training mandate for three years, under the PMKVY scheme, subject to capacity and utilization of the centre and the common guidelines.

UDAAN - This is a Special Industry Initiative (SII) for J & K that is funded by the Ministry of Home Affairs and implemented by National Skill Development Corporation (NSDC). It aims to address the needs of the educated unemployed in J&K. The scheme will assist youth of Jammu & Kashmir (J&K) who are graduate, post graduate and three-year diploma engineers by providing them skills and job opportunities. The plan is also to provide exposure to corporate India towards the rich talent pool available in J&K. The UDAAN initiative will support companies to travel to the J&K and explore the rich talent pool of the youth there. Likewise, it will also help the youth to travel, undergo training in firms and transit to work.

International Skill Training - India International Skill Centres (IISCs) were set up by the National Skill Development Corporation (NSDC) to provide skill training and certification benchmarked to International Standards and equipping the Indian workforce for overseas jobs. Under this initiative, eligible candidates are given domain training by the Ministry of Skill Development and Entrepreneurship (MSDE). The Ministry of External Affairs (MEA) provides support for Pre-Departure Orientation Training (PDOT) under the Pravasi Kaushal Vikas Yojna (PKVY) framework.

Technical Intern Training Program – The Ministry of Skill Development & Entrepreneurship (MSDE), Government of India and the Ministry of Justice, Ministry of Foreign Affairs and Ministry of Health, Labour and Welfare of Japan signed a Memorandum of Cooperation initiating the Technical Intern Training Program (TITP) in India in October 2017. The objective of the program is to promote international collaboration through the transfer of skills, technology, and knowledge among the participating countries. This will ultimately contribute towards human resource development. Under the scheme, workers are trained for a specific period (3 – 5 years) in Japan’s industrial society. NSDC will select the Sending Organizations (SOs) through Request for Proposal (RFP). The Sending Organization will then identify eligible candidates as per the defined eligibility criterion. The SO will also conduct a Pre-Departure Training of their candidates to ensure that the candidates are trained on different aspects of the visiting country.

What are the benefits to the Training Partners through NSDC?

The Training Partners are given funding assistance to set up relevant training centres. These financial assistance come with attractive terms. They are also given operational support in the form of minimum guaranteed placements.

Key Elements of NSDC Funded Affiliation

Eligibility

Any legal entity including, but not limited, to Company/ Society / Trust as per the process and applicable laws and guidelines

Nature of Funding

Total investment requirement towards –

  • Training Infrastructure (excluding the acquisition/creation of immovable)
  • Working Capital

Interest Rate

6% p.a.

Principal Moratorium Period

Up to 3 years

Interest Moratorium Period

NIL

Repayment Period

7 years (including moratorium period)

Promoters Contribution

  • Minimum 15% of the investment requirement (not-for-profit entities)
  • Minimum 25% of the investment requirement (for-profit entities)

Placement Guarantee Commitment

At least 70%

Collateral

  • First charge on assets of the project
  • First charge on cash flows of the project
  • First charge on IP developed under the project
  • Personal Guarantee/ Corporate Guarantee/ Put-Option on another Associate Company
  • Pledge of shares to the tune of minimum 51% of the equity of the project implementing entity (for-profit entities)
  • Pledge letters to be taken (not-for-profit entities)
  • Post Dated Cheques
  • Hard collateral (including but not limited to bank guarantee/ mortgage of immovable property/ lien on fixed deposits etc.) covering minimum 30% of the loan amount

Skill Loans for Students

NSDC's Vidya Kaushal offers various loan options for students looking to enrol in a skill development course. Aspiring students can access loan information on the Vidya Kaushal portal.

It offers - 

  • A wide range of financial options
  • Easy online application
  • No physical paperwork
  • Relaxed payback scheme

NSDC FAQs

1. What courses are available through NSDC?

Skill Development courses from NSDC are offered through the PMKVY - Pradhan Mantri Kaushal Vikas Yojana. Around 160 different courses from various sectors are available under the PMKVY Scheme.

2. How can I apply to become a training partner in the NSDC programme?

Private enterprises / Corporates / NGOs are encouraged to submit proposals to partner with NSDC to set up a Training Centre. You can login to the official NSDC website and apply for the programme with your proposal.

3. How much funding support can I expect to set up a Training Centre?

NSDC will provide concessional loan funding per centre, up to 75% of the project investment.

4. What are the different schemes & initiatives undertaken by the NSDC?

NSDC offers the following schemes and initiatives:

  • Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
  • Pradhan Mantri Kaushal Kendra
  • Udaan
  • International Skill Training
  • Technical Intern Training Program (TITP)

5. How do I find the nearest NSDC Training Centre to my place?

You can use the ‘Find a NSDC Training Centre’ option from the Menu to find the nearest centre. It lists the training centre’s name, the contact details and the course offered in brief details.

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