Established in 2008, National Skills Development Corporation (Which is the NSDC full form) is a not-for-profit public limited company, incorporated under Section 25 of the Companies Act 1956. NSDC was set up by the Ministry of Finance, as an entity named ‘Public-Private Partnership’. NSDC’s primary focus is to promote skill development throughout the country. Funding provided by NSDC can be used for the working capital requirement for skill development activity and is not provided for buying or constructing any type of immovable property that includes land or building, etc.
Not-for-profit public limited company established on July 31, 2008, as a Private Public Partnership (PPP) model by the Ministry of Finance. The Government of India under Ministry of Skill Development and Entrepreneurship (MSDE) is obliged to get 49% of the share capital of NDSC, and private sectors get the remaining 51% share. The organization provides funds to build scalable and profitable vocational training institutions. NSDC acts as a catalyst by rendering funds to enterprises, companies and organizations that provide skill training. Moreover, innovative models have been developed to enhance, support and coordinate private sector initiatives.
Key Functions of NSDC
- Provides funding to build accessible and profitable vocational training centers
- Develop low-cost and high-quality business models
- Enables a support system that emphasizes quality assurance and information systems
- Directly training the trainer academies or via partnerships
- Provides funding support to companies, enterprises, and organizations that promote and provide skill training and development
- Develops suitable models to improve, support, and coordinate private sector initiatives
Objective
The organization contributes significantly to the overall target of skilling up of people across the nation by fostering private sector initiatives through skill development programmes. It enables support system that emphasis on quality assurance, information systems and train academies either directly or through partnerships.
Mission
The mission of NSDC is to
- Upgrade skills to international standards and develop mandatory frameworks for curriculum, standards and quality assurance.
- Enhance, coordinate and support private sector initiatives for skill development through appropriate Public-Private Partnership (PPP) model and strive for significant financial and operational involvement from the private sector.
- Acts as a ‘market-maker’ by bringing funds to sectors where market mechanisms are lacking or ineffective.
- Prioritize initiatives that can provide multiplier or catalytic effect as opposed to one-off impact.
Vision
NSDC was established as part of a National Skill Development Mission to meet the growing requirements in India for skilled human resources and narrow the existing gap between demand and supply of skills.
Key Roles
National Skill Development Corporation plays three key roles that are
- Funding and incentivising
- Enabling support services
- Shaping/creating
Funding and Incentivising
This includes providing loan/equity, grants and supporting financial incentives to select private sector initiatives to improve financial viability through tax breaks. The exact nature of funding (equity, loan and grant) depends on the viability or attractiveness of the segment and to the type of player, for-profit private, non-profit industry association or non-profit NGO. Gradually, NSDC aspires to create strong, viable business models and reduces its grant-making role.
Enabling Support Services
A skill development institute requires several inputs or support services such as curriculum, faculty training standards, quality assurance, technology platforms, student placement mechanisms etc. NSDC contributes to these support services to set up standards and accreditation systems in partnership with industry associations.
Shaping/creating
NSDC proactively provides momentum for large-scale participation by private players in skill development. NSDC identifies critical skill groups, develop models for skill development and attracts potential private players.
NSDC Schemes and Initiatives
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a scheme initiated by Government of India under Ministry of Skill Development & Entrepreneurship (MSDE) and implemented by NSDC. PMKVY enables Indian youth to undertake industry-related skill training that will help them to do job and earn money for better living.
Key components of PMKVY
- Recognition of Prior Learning (RPL)
- Short-term training programs
- Placement assistance for youth
- Special projects and continuous monitoring
- Kaushal and Rozgar Mela
- Standardized branding and communication
Pradhan Mantri Kaushal Kendra (PMKK)
Pradhan Mantri Kaushal Kendra (PMKK) promotes vocational training to develop skills among people of India. Under NSDC, Ministry of Skill Development and Entrepreneurship (MSDE) plans to establish Model Training Centres (MTCs) in almost every city and district of the nation.
Funding Support
NSDC shall offer concessional secured loan funding up to 75% of the project investment for each centre. The corporation offers funding to cover expenditure only concerned with the following:
- Training infrastructure that include purchase of plant, equipment and machinery
- Civil work such as setting up prefabricated structures and retrofit existing structures
- Training aid and associated items
Udaan
Implemented by NSDC and funded by Ministry of Home Affairs, Udaan is a Special Industry Initiative (SII) for the youth of J&K. Udaan program fulfills the requirements of educated unemployed youth of J&K by providing skills and job opportunities. The prime focus lays on graduates, post graduates and 3 year diploma engineers. Udaan program has a target of fulfilling the needs
FAQs
How can NSDC support my organization?
NSDC shall provide a loan depending on the type and nature of the proposal and the loan amount and interest rate will depend after the proposal is read by the corporation.
What is the interest rate offered by NSDC for loans offered to applicants?
The interest rate offered by NSDC is as low as 6% per annum.