National Skill Development Scheme was announced by
the Union Finance Minister in his Budget Speech of
2013. The scheme titled ‘National Skill
Certification & Monetary Reward Scheme’ encourages
skill development for youth by providing monetary
reward for successful completion of approved
training programs. The scheme is to be implemented
by the National Skill Development Corporation (NSDC)
through Public-Private and Public-Public
objectives of the scheme were delineated by the
Union Finance Minister Shri P.
Chidambaram when he announced the scheme at a
function held recently in Vigyan Bhawan,
New Delhi. He said “A large number of youth must be
motivated to voluntarily join skill development programmes.
I propose to ask the National Skill Development
Corporation to set the curriculum and standards for
training courses. At the end of the training, the
candidate will be required to take a test conducted
by authorized certification bodies. Upon passing the
test, the candidate will be given a certificate as
well as a monetary reward of an average of 10,000
per candidate. Skill-trained youth will give an
enormous boost to employability and productivity. On
the assumption that ten lakh youth
can be motivated, I propose to set apart Rs.1, 000 crore for
this ambitious scheme. I hope that this will be the
trigger to extend skill development to all the youth
of the country.”
Specifically, the Scheme aims to:
standardization in the certification process and
initiate a process of creating a registry of skills;
productivity of the existing workforce and align the
training and certification to the needs of the
Monetary Awards for Skill Certification to boost
employability and productivity of youth byincentivizing them
for skill trainings.
Key Features of the Scheme
The Scheme will provide monetary reward on
successful completion of, market-driven skill
training to approximately ten lakh (10,
00,000) youth 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. Assessing 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. Appropriate
consideration will be provided to the economically
Eligible Sectors and Job Roles
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
Occupational Standards (NOS) and Quality Packs (QP)
for these roles will be prepared by the respective Sector
Skill Councils (SSCs), and
will constitute 80% of the entry-level workforce in
Training Content and Eligible Providers
order to ensure that the benefit is extended only to
the trainees taking courses which are aligned to NOSsand 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.
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 QPsof
various eligible job roles corresponding to Levels 1
to 4 as designed by SSCs.
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.
list of all the training providers in the skill
development space that are NSDC partners shall be
available on the NSDC
website i.e. www.nsdcindia.org in
addition to the QPs,
NOS, Approved Sectors and Job Roles.
programs will be for a minimum of 30 days duration.
It will be ensured that assessments are planned bySSCs only
after completion of the training. The duration of
training may also include on the job training,
Internships etc. if required.
The NSDC provides services for the following sectors
/ Auto components
and leather goods
hardware and home furnishings
hospitality and travel
logistics/ warehousing and packaging
entertainment, broadcasting, content creation,
insurance and finance
Assessment and Certification
No entity that is engaged in providing training
under this Scheme shall be eligible to be approved
as an assessment and certification agency.
assessment agencies will be pre-screened and
approved by the SSCs and
their details updated on the Skill Development
Management System (SDMS).
a select set of assessment agencies with national
presence and having demonstrated ability to assess
the eligible training content w.r.t.
NOS and QPs,
will be selected by SSCs.
Later the Scheme would be made open to all eligible
assessment agencies. 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. All assessments will
conform to assessment guidelines laid down by the
concerned SSC for each QP.
Fees charged to candidates by the assessment
agencies for each assessment will be capped as
aligned to shop floor job roles in manufacturing –
other Courses – maximum Rs.
In line with the objectives stated above, this
Scheme is applicable to any candidate of Indian
Undergoes skill development training in an eligible
sector by an eligible training provider as defined
Is certified during the span of one year from the
date of launch of the scheme by approved assessment
agencies as defined above; and
Is availing of this monetary award for the first and
only time during the operation of this Scheme.
scheme is currently meant only for candidates
availing themselves of skill development training
from eligible providers.
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 Bank
Association. Monetary Reward for certification is as
NSQF Level 1 & 2
NSQF Level 3 & 4
Service & other Sectors
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.
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.
Evaluation and Monitoring
Development Management System will have the central
repository of data which can be utilized by various
stake holders to monitor this Scheme.
All agencies like SSCs,
training institutions, assessment agencies etc. will
have access to SDMS to maintain a central,
repository of training data.
Independent evaluation of the Scheme will be done by
the NSDA based on agreed criteria with NSDC.
Process for Availing the Benefits of the Scheme
candidate can enrol 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.
candidate needs to intimate the training providers
that he/she intends to participate in the Scheme.
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.
completion of the training, the candidate may get
assessed by any of the approved assessment agencies
as specified above.
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 aCAM device and
linked to Unique
Identity Number (UID)/ National Population Register
of the candidate
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.
DG (M&C), Finance, PIB