Skills and knowledge form the bedrock of the socioeconomic growth of a country. Various studies have pointed out the skill gap prevalent among the Indian workforce, and bridging this gap can help impede productivity rates in the economy.
For instance, a recent report states that vocational training can increase wages by 4.7%. Hence, to tackle challenges arising due to this skill gap and help people increase their efficiency, the Indian government established National Skill Development Corporation (NSDC) in 2008.
Read on to learn more about the NSDC and its various functions.
The National Skill Development Corporation (NSDC) was established by the Government of India as a public-private partnership (PPP) company. This organisation was established with the sole objective of boosting skill development in India.
This organisation works in alignment with the National Skill Development Mission (NSDM) and National Skill Quality Framework (NSQF).
The National Skill Development Corporation (NSDC) was formed by the Indian government as a non-profit company. This organisation was catalysed under Section 25 of the Companies Act of 1956 on July 31, 2008.
The Ministry of Finance set it up as a PPP model company, where 49% of the company’s shares are held by the Ministry of Skill Development and Entrepreneurship (MSDE). The remaining 51% of the shares of the company are held by the private sector.
Later when GST Rules were notified in 2017, the NSDC collaborated with the Institute of Company Secretaries of India to train 1 Lakh accountants. The objective of the NSDC Skill India was to make these professionals well-versed in the GST process.
To date, the NSDC company has upskilled 5.2 million individuals, entered into 235 partnerships with the private sector, and initiated 38 sector skill councils.
The National Skill Development Corporation (NSDC) under e-skill India was formed to execute the following objectives:
One of the main objectives of NSDC was to fill the skill gap prevalent among the Indian workforce and meet international standards
Provide a support system to private sector institutions by imparting vocational training through a PPP model
Act as a ‘market-maker’ for those sectors that lack market mechanisms
Enhance those initiatives that can have a multiplier effect on the economic growth and skilling of the workforce
The following are some schemes included in the National Skill Development Corporation:
Pradhan Mantri Kaushal Kendra: These ‘Kendras’ are model training centres that are equipped with industry-driven Skill India courses to provide employability to trainees.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): This Pradhan Mantri Kaushal Vikas Yojana is an initiative to enable workers to pursue industry-relevant skill training to improve their livelihood.
India International Skill Centre (IISC) Network: The NSDC company has set up 14 such centres that impart training pertaining to international standards across 9 job fields.
SWADES: SWADES, or Skilled Workers Arrival Database for Employment Support, is a joint program by MSDE, the Ministry of Civil Aviation and the Ministry of External Affairs. It aims to create a data set of skills for citizens returning from abroad.
Seekho Aur Kamao: This initiative was started in 2013-14 to upgrade the skills of minority youth in modern and traditional industries.
Technical Intern Training: The Technical Intern Training Program (TITP) was initiated in 1993 in Japan. It aims to promote skilling through on-the-job training in Japan.
If a company or other organisation decides to function as a training partner, they can avail a loan from NSDC. These loans are available at a lower interest rate of 6% p.a. For this purpose, they will have to first apply for it, and the NSDC will disburse the loan after assessing the essential parameters.
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FAQs for National Skill Development Corporation
What type of company is NSDC?
The NSDC (National Skill Development Corporation) is a not-for-profit company based on the public-private partnership (PPP) model.
How will our organisation benefit from NSDC?
If your organisation decides to enrol as a training partner, you can avail loans from NSDC for your working capital. These loans are available at a lower interest rate of 6% p.a.
Can an organisation be a non-funding partner?
Yes, an organisation can be a non-funding partner if it has been in existence for more than 5 years with a decent record of growth.
Who can be NSDC partners?
Entrepreneurs, training institutes, partnerships, and non-funded partnerships can become NSDC partners.
How to apply for accreditation?
To apply for accreditation, first fill out the Centre Accreditation Application Form or CAAF with the necessary information on infrastructure, jobs, equipment, etc. In the next step, upload the supporting evidence, like photos of the machinery and equipment.
Lastly, submit the annual accreditation fee to complete the process.
Can any training centre apply for accreditation?
To be eligible for the accreditation, a training centre needs to complete the National Skill Development Corporation registration and pay the annual accreditation fee.
What are the eligibility criteria to apply for a non-funding partnership?
To become a non-funding partner, the organisation must be in existence for more than 5 years with decent growth.
What is the interest rate offered by NSDC for loans offered to applicants?
The interest rate offered by NSDC to training partners is 6% p.a.
Are the training centres inspected?
Yes, for quality assurance, inspection agencies periodically visit and inspect the training centres.
