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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.

What is the National Skill Development Corporation?

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).

History of National Skill Development Corporation

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.   

What are the Objectives of the National Skill Development Corporation?

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

What Does the NSDC Do?

The National Skill Development Corporation (NSDC) works to boost upskilling of the workforce under the e-skill India initiative. For this purpose, the organisation sets up large and quality vocational training institutions.

Moreover, they also provide funding to the private sector to promote them to build scalable training initiatives. Its responsibilities also include the creation of Skill India courses and modules based on which the training is imparted.

 

On successfully completing NSDC courses, the organisation also provides trainees with an NSDC certificate. This certifies that the trainee has completed vocational training in any one of the particular fields.

In addition, an autonomous body named National Skill Development Agency (NSDA) has been set up under the Ministry of Skill Development and Entrepreneurship. 

It anchors the National Skills Qualifications Framework (NSQF) and ensures the quality of the training initiatives. 

The NSDC model is created on three pillars which include the following: 

  • Create: Creation of large quality vocational training institutions

  • Fund: Provide these institutions with capital, grants, and equity for their seamless functioning

  • Enable: Form a support system for skilling landscape in the country

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Partners in the NSDC Skill Development Initiative

From the time of its inception in 2008, the National Skill Development Corporation has entered into several partnerships with different sectors. Here are a few details of these partnerships:

1. Private Partnership

The NSDC has partnered with several private sector entities focusing on the following factors:

  • Generating awareness

  • Providing financing options

  • Enhancing capacity

  • Assessing the skilling process 

  • Providing trainees with NSDC certificates

  • Channelizing corporate social responsibility (CSR)

2. Engagement with International Entities

The NSDC company has also engaged with international organisations to partner in the following areas:

  • Investment in training programs

  • Technical support 

  • International standardisation of the e-Skill India program

  • Overseas jobs

3. Ministries of the Central Government

The National Skill Development Corporation has also partnered with Central Government ministries. It runs the NSDC courses aligned with the flagship programs of the government like Make in India, Smart City project, Namami Ganga initiative, etc. 

4. State Governments 

Just like the Central Government, the NSDC also works in tandem with programs and schemes initiated by various state governments. 

5. Educational Institutions

This organisation also works in association with educational institutions like universities and schools to impart vocational training to the youth. The NSDC company addresses the following areas when working with the educational system:

  • Starting specific training programs

  • Evolving credit framework

  • Developing entrepreneurship

6. Non-profit Organisations

The NSDC Skill India program is also associated with various non-profit organisations that help in upskilling marginalised sections by working on the following:

  • Enhancing capacity

  • Developing livelihood

  • Evolving entrepreneurship

7. Early-Stage Businesses

The NSDC also provides assistance to start-ups facing the skill gap in the current business ecosystem. The organisation also offers training programs for persons with disability.

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Schemes Under National Skill Development Corporation

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.  

What are the Benefits to the Training Partners Through NSDC?

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.

Achievements of National Skill Development Corporation

The following are some achievements of the National Skill Development Corporation: 

  • To date, the NSDC company has provided training to 5.2 million trainees.

  • It has partnered with 235 institutions in the private sector, with each institution having the capacity to train 50,000 people in 10 years.

  • The organisation has also opened 38 Sector Skill Councils (SSC) focused on agriculture, manufacturing, and services. These SSCs span 19 of the total 20 high-priority sectors and 25 sectors under the Make in India initiative.

  • NSDC company has also created 1386 Qualification Packs with 6,744 unique National Occupational Standards (NOS).

  • The NSDC has introduced skill training in 10 states, spanning over 2,400 schools and two boards.

  • NSDC has also partnered with 21 universities, Community Colleges under UGC/AICTE with an aim to align education and training to NSQF

  • It has also created a Skill Development Management System (SDMS) with the hosting infrastructure certified by ISO with the following facilities:

  1. 1400 training partners

  2. 28179 training centres

  3. 16479 trainers

  4. 20 job portals

  5. 77 assessment agencies 

  6. 4983 impanelled assessors

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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.

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