Motivating youth to

voluntarily join skill development

1. Objectives

The objective of this Scheme is to encourage skill development for youth by providing monetary rewards for successful completion of approved training programs. Specifically, the Scheme aims to:
  • encourage standardization in the certification process and initiate a process of creating a registry of skills; and
  • increase productivity of the existing workforce and align the training and certification to the needs of the country.
  • provide Monetary Awards for Skill Certification to boost employability and productivity of youth by incentivizing them for skill trainings
  • reward candidates undergoing skill training by authorized institutions at an average monetary reward of ₹ 10,000 (Rupees Ten Thousand) per candidate.
  • benefit 10 lakh youth at an approximate total cost of ₹ 1,000 Crores.

2. Background

The Finance Minister in his Budget Speech of 2013 proposed a scheme to encourage skill development for youth by providing monetary rewards for successful completion of approved training programs.

3. Key Features

  • This Scheme shall be implemented through Public-Private and Public-Public partnerships.
  • NSDC will be the implementing agency for this Scheme and NSDF shall monitor the implementation of the Scheme, using mutually agreed criteria with NSDC.
  • The Scheme will provide monetary incentives for successful completion of, market-driven skill training to approximately ten lakh youth in in a span of one year from the date of implementation of the scheme.
  • All trainings will be specifically oriented for developing skills in specific growth sectors.
  • Assessment and training bodies for all purposes of the Scheme will be separate and no overlap of roles will be allowed to maintain transparency and objectivity.
  • The monetary reward will be wholly funded by the Ministry of Finance, Government of India, and will be affected through direct bank transfer to the beneficiaries’ accounts.
  • Appropriate consideration will be provided to the economically backward sections.

4. Strategy & Approach

4.1 Eligible Sectors and Job Roles

  • a) While the Scheme is intended to cover all job roles in all sectors, it will initially cover only a limited number of high-market-demand Job Roles in specified economic sectors from Levels I to IV in the NVEQF/NSQF.
  • b) NOSs and QPs for these roles will be prepared by the respective SSCs, and will constitute 80% of the entry-level workforce in priority sectors.

4.2 Training Content and Eligible Providers

  • a) To ensure that benefit is extended only to the trainees taking courses which are aligned to NOSs and QPs for eligible Sectors and Job Roles, a select list of training institutions to offer these courses will be approved for the purposes of this Scheme.
  • b) All institutions, government or private (who, during the last two years, have been selected by any State Government or any Ministry of the Government of India to implement any Government funded or sponsored Scheme), or are NSDC partners, shall be deemed to be part of the approved list of training providers under this Scheme. All such deemed approved training providers will need to get each training course they propose to offer, aligned to NOS and QPs of various eligible job roles corresponding to Levels I to IV of the NVEQF/NSQF.
  • c) Those training providers, who have no prior affiliation with any government institution or NSDC, will go through a pre-screening process of the SSCs according to an Affiliation Protocol prepared by NSDC/SSC.
  • d) The willingness of a training provider to permit trainees to pay part of their fees after the monetary reward has been received, shall be considered while approval is granted for such training provider to be part of the Scheme.
  • e) No fees shall be charged by the SSCs for the approval process of training providers at Para 4.2 (b) above, for each Courseware aligned to a job role. Charges will be applicable only for training of trainers and their assessments.
  • f) The list of all the training providers in the skill development space that have been associated with any government institution shall be available on the NSDA website.
  • g) The list of all the training providers in the skill development space that are NSDC partners, and those that are pre-screened as per Para 4.2 (c) above shall be available on the NSDC website in addition to the QPs, NOS, Approved Sectors and Job Roles.
  • h) Training programs will be for a minimum of 30 days duration and will include training on social skills like health, hygiene, communication skills etc. It will be ensured that assessments are planned by SSCs only after 30 days of commencement of the training. The 30 days duration of training may also include On the Job training, Internships etc. if required.

4.3 Assessment and Certification

  • a) No entity that is engaged in providing training under this Scheme shall be eligible to be approved as an assessment and certification agency.
  • b) All assessment agencies will be pre-screened and approved by the SSCs and their details updated on the SDMS.
  • c) Initially a select set of assessment agencies with pan national presence, and having demonstrated ability to assess the eligible training content w.r.t NOS and QPs, will be selected. Later the Scheme would be made open to all eligible assessment agencies.
  • d) In due course, any institution or body offering assessment services can apply to work with specific SSCs, for designated NOS and QPs for eligible sectors and job roles.
  • e) All assessments will conform to assessment guidelines laid down by the concerned SSC for each QP. Any candidate can undergo assessment any number of times for qualifying for a particular job role, at any approved assessment agency. A candidate has to undergo formal training as a prerequisite for assessment.
  • f) Assessment Fees charged to candidates for each assessment will be capped as follows:
  • Assessment Fees charged to candidates for each assessment will be capped as follows:
    • i. Courses aligned to shop floor job roles in manufacturing – maximum ₹ 1,500
    • ii. All other Courses – maximum ₹ 1,000

4.4 Eligible Beneficiaries

In line with the objectives stated above, this Scheme is applicable to any candidate of Indian nationality who:
  • a) undergoes a skill development training in an eligible sector by an eligible training provider as defined above;
  • b) is certified during the span of one year from the date of launch of the scheme by approved assessment agencies as defined above;
  • c) is availing of this monetary award for the first and only time during the operation of this Scheme.
The Scheme is currently meant only for candidates availing themselves of skill development trainings from eligible providers. Recognition of Prior Learning may be covered later during the currency of the Scheme.

4.5 Placement and Awards

  • a) The banking network will be used for direct transfer of the funds to the candidates / training provider. The reward corpus will be placed with a nodal bank in each District in consultation with the Indian Banks Association that will then create a consortium to ensure disbursement of the amount into the account of the beneficiary/ies. Details of such Banks in each district would be given wide publicity on relevant websites.
  • b) Monetary Award for Certification is as follows:
  • Sectors NSQF Levels 1 & 2 NSQF Levels 3 & 4
    Manufacturing Courses Rs. 10,000 Rs. 15,000
    Service & Other Sectors Rs. 7500 Rs. 10,000
  • c) Each category would have pre-defined number of awards. Once the number for a particular category gets exhausted, only proposals for the remaining categories would be entertained. The numbers for each category would be mentioned in the NSDA and NSDC’s website and would be subject to a periodic review. The numbers for each category would be mentioned in the NSDA and NSDC’s website and would be subject to a periodic review.
  • d) In order to enable the financially disadvantaged to use the award money to fund a part of the training cost, the training providers will allow candidates to pay part of the course fee (minimum 25% of the prescribed fee) and the balance will be paid to the training provider from the monetary award whenever the candidate is eligible for its receipt. However this amount shall not exceed the total amount that the candidate is eligible for. At the time of enrollment for the course, the trainee will have to pay some part of the course fee (minimum 25% of the prescribed fee), so that the candidate has a sustained interest in the completion of the course.
  • e) A Complaints / Grievance cell for this Scheme would be set up which shall include representatives of the SSCs, the NSDC and the NSDA. The first level of redress would be the Governing Council of the relevant SSC and a second level would be the NSDA.

4.6 Evaluation and Monitoring

  • a) SDMS will have the central repository of data which can be utilized by various stake holders to monitor this Scheme.
  • b) All agencies, like SSCs, training institutions, assessment agencies etc. will have access to SDMS to maintain a central repository of training data.
  • c) Independent evaluation of the Scheme will be done by the NSDA based on agreed criteria with NSDC.

5. Process for availing the benefits of the Scheme

  • 5.1 The candidate can enroll in any course from the list of registered courses in specified high demand sectors. The candidate can pursue the course with any of the approved training providers.
  • 5.2 The candidate needs to intimate the training providers that he/she intends to participate in the Scheme. The details of the student shall then be entered in to the SDMS database along with the UID/NPR number (or if neither is available, the mobile number of the candidate), and contact details. The training provider will facilitate the enrolment of the candidate in UIDAI/NPR Scheme and update the mobile number with the UID/NPR number.
  • 5.3 Candidates from economically disadvantaged sections will be allowed to pay initial fees equal to the difference between the training cost and the reward money they are eligible for. In such cases the candidate can authorize payment of the reward money to be directly transferred to the training provider after the candidate successfully passes the assessment. Bank details of such candidates shall be mandatorily taken at the time of registration, or opening of account.
  • 5.4 After completion of the training, the candidate may get assessed by any of the approved assessment agencies as specified in 4.3 above.
  • 5.5 The details of the assessments are captured on SDMS and forwarded to the concerned SSC electronically.
  • 5.6 The assessment agency, in association with SSCs, will award a secure certificate with a QR bar code for successful completion and assessment of a course through the SDMS. The certificate will be electronically verified using a CAM device and linked to UID/NPR number of the candidate.
  • 5.7 If the candidate has successfully completed a course which is already being certified by agencies other than SSCs in the existing market scenario, such as universities, school boards, NCVT, SCVT, internationally recognized certification agencies etc., SSCs shall work with these institutions for award of dual certification for the course.
  • 5.8 The certification fees shall be paid by the candidate to the assessment agencies as defined in 4.3 (f) above.
  • 5.9 The award and issue of the certificate will be captured in SDMS.
  • 5.10 After successfully meeting all eligibility criteria as specified in 4.4 above, the candidate shall be eligible for the monetary reward.
  • 5.11 After verification of the secure certificate by the approved training provider and updation of SDMS, NSDC will instruct the bank to credit the candidate’s bank account directly. Alternately the award money may also be paid as bank draft in the name of the beneficiary.
  • 5.12 Where the fees have been paid in part, the training provider will be paid by NSDC through a direct bank transfer.
  • 5.13 Once the monetary reward is given under the Scheme and the candidates’ record has been updated on SDMS, no further payment will be made using the secure certificate.