National Skill Development Corporation (NSDC)
National Skill Development Corporation (NSDC) is not-for-profit organization set up by the Government of India to facilitate the development and upgrading of the skills of the growing Indian workforce through skill training programs.
NSDC, a body under the Ministry of Finance, is one of its kind public private partnership endeavour, with 51 per cent equity held by private sector and 49 per cent by the Union Government.
Formed in 2010, NSDC is a professionally run not-for-profit company that includes 22 Sector Skill Councils and 87 training partners with over 2500 training centres spread across 352 districts in the country.
The Finance Minister announced the formation of the National Skill Development Corporation (NSDC) in his Budget Speech (2008-09).
The objective of NSDC is to fulfill the growing need for skilled manpower in the country, mainly by fostering private sector initiatives in skill development.
The salient features of the mandate assigned to NSDC are:
- Upgrade skills to international standards through significant industry involvement and develop necessary frameworks for standards, curriculum and quality assurance
- Enhance, support and coordinate private sector initiatives for skill development through appropriate Public-Private Partnership (PPP) models; strive for significant operational and financial involvement from the private sector
- Focus on underprivileged sections of society and backward regions of the country thereby enabling a move out of poverty; similarly, focus significantly on the unorganized or informal sector workforce.
- Play the role of a "market-maker" by bringing financing, particularly in sectors where market mechanisms are ineffective or missing
- Prioritize initiatives that can have a multiplier or catalytic effect as opposed to one-off impact
It is beginning of the endeavour of Government to take through the vision of skilling 500 million by 2022.
NSDC will play three key roles: Funding and incentivising: This involves providing financing either as loans or equity, providing grants and supporting financial incentives to select private sector initiatives, to improve financial viability through tax breaks etc. The exact nature of funding (equity, loan, grant) will depend 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). Over time, the NSDC aspires to create strong viable business models and reduce its grant-making role.
Enabling support services: A skills development institute requires a number of inputs or support services such as curriculum, faculty and their training, standards and quality assurance, technology platforms, student placement mechanisms and so on. The NSDC will play a significant enabling role in some of these support services, most importantly, setting up standards and accreditation systems in partnership with industry associations.
Shaping/creating: NSDC will proactively seed and provide 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.
The National Skill Certification and Monetary Reward Scheme launched by the Finance Minister on 16th August 2013 is implemented by NSDC
As on 31st March, 2015, the 209 NSDC approved partners, have 3611 operational training centres, including 843 mobile centres with coverage across 28 states and 5 UTs in 497 districts across India. The NSDC has approved 37 industry led bodies called Sector Skill Councils (SSCs) to promote industry/employer participation. Various kinds of training is imparted by NSDC training providers based on the 1319 Qualification Packs (QPs) and 6625 National Occupation Standards (NOSs) developed by the respective Sector Skill Councils.