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NSFDC: Skill Development Training Policy 2016

 NSFDC: Skill Development Training Policy 2016

1.     Background
1.1    Today, India is one of the youngest nations in  the world  with  more  than 62% of its population in the working age group (15-59 years), and  more  than  54% of its total population  below 25 years  of  age. The  labour  force  in  the industrialized  world is  expected to decline by 4% during  the  next  20  years, whereas in India it  is likely to  increase by around 32%. This poses a formidable challenge as well as a huge opportunity for skilling youth in India. As per the Census 2011, the Scheduled Castes population of the country constitutes 16.60% of the total population.  The Socio Economic and Caste Census 2011 data reveals that about 54.71% of SC (Rural) households are landless, deriving major part of their income from manual casual labour, while only 7.30% are in Govt./Public/Private and the monthly income of highest earning member of 83.50% of SC families is less than Rs.5000/-. Therefore, for socio-economic upliftment of SCs, the skilling needs of the target group need to be fulfilled and this would continue to be one of the key objectives of the NSFDC.
1.2    The NSFDC Skill Development Training Policy was last revised in 2011, and since then it has provided the framework for skill development activities of the Corporation, with modifications from time to time.
1.3    The National Policy for Skill Development and Entrepreneurship 2015 reflects the tenets of the Skill India programme of the Government, which focuses on outcome based approach in terms of providing meaningful employment in the form of wage and self-employment. The Ministry of Skill Development & Entrepreneurship (MSD&E) has also notified Common Norms for Skill Development Schemes being implemented by various agencies of the Government of India, which are effective from 1st April 2016. The common norms pertain to post training placement, standards for inputs/output, funding/cost norms, third party certification and assessment cost, etc.
1.4    The common norms have been incorporated in the NSFDC Skill Development Training Policy 2016, and it will supercede the Policy of 2011.
2.      Aims and Objectives
2.1    The core objective of the policy is to adopt an integrated outcome-based approach for fulfilling skilling needs of the target group and enhance their employability. Further, measures would be taken to continuously improve the quality of the skill development programs and gradually adopt National Skills Qualifications Framework (NSQF)- a competency based framework.
2.2    Mobilize additional financial resources for skill training from CPSEs/Private Sector out of their Corporate Social Responsibility (CSR) funds.
2.4    Promote “learn, earn and pay” model of skill training as outlined in the National Policy for Skill Development and Entrepreneurship 2015 through implementation of the Vocational Education & Training Loan Scheme (VETLS) of NSFDC.
3       Policy Framework for Skill Development
The framework outlines paradigms and enablers to achieve the objectives:
3.1    Quality
The following parameters have been identified by the NSFDC for improving the quality of skill development training and to ensure that the national standards are met:
3.1.1 Adoption of Common Norms for Skill Development Schemes implemented by Government of India
The provisions of the Common Norms for Skill Development Schemes implemented by Government of India are effective from 1st April 2016.The norms include standards for inputs/output, funding/cost norms, third party certification and assessment cost, etc. NSFDC shall adopt the major provisions of the Common Norms subject to applicability of norms and availability of resources for implementation of skill development training programs.
3.1.2 Alignment with the National Skills Qualifications Framework (NSQF)
As per provisions of the gazette notification on NSQF, all formal and vocational education including skill training will have to align themselves with NSQF by December 2018. All skill training providers will have to organize their courses/programs to ensure alignment with NSQF levels by December, 2016 failing which no Govt. funding would be provided. Accordingly, steps would be taken by NSFDC for alignment of skill training programs with the NSQF.
3.1.3 Curriculum Alignment 
To ensure  that  the curricula  is  in  sync  with emerging market demands and aligned to latest National Occupational Standards (NOS) and Qualification Packs (QPs) for various job roles, NSFDC would be implementing only Sector Skill Councils (SSCs) approved courses so that persons are accordingly trained.
3.1.4 Placements
The most critical outcome of skill training is employment, whether self or wage employment. To assess quality of skill training, this critical outcome will need to be monitored objectively. For this, NSFDC would be following the placement norms as prescribed in the Common Norms. Tracking of trainees for at least one year, post completion of training, will be made mandatory under all skill programs of NSFDC.
3.2    Quantum of Assistance
Under the grant based model, NSFDC would provide financial assistance in the form of grants to cover the entire operational expenses of the training programs. In addition to this, stipend @ Rs.1,500/- per month per candidate would be provided during the training programme to meet their incidental expenses, subject to 90% attendance in each month. The minimum and maximum age criteria for selection of trainees are 18 years and 50 years respectively.
Under loan based ‘Learn, Earn & Pay’ model, loans upto Rs.1.50 lakh for courses  up to 2 years duration shall be provided at 4% p.a. (3.5% p.a. for girls) through the channelizing agencies. The loans shall cover course fees and lodging/boarding expenses.  No stipend would be provided in this model. 
3.3    Training Providers & Courses
NSFDC would continue to give preference to Government /Semi-Government /Autonomous Institutions and Universities/Deemed Universities for conducting its sponsored skill development training programmes. NSFDC may also consider proposals received from SSCs/SSC affiliated training providers for training, preferably for cluster development, especially in areas where NSFDC would be channelising funds through Non-Banking Financial Company-Micro Finance Institutions (NBFC-MFIs). Further, those training institutes with whom NSFDC has signed Memorandum of Agreement (MoA) to promote “learn, earn and pay” model of skill training through VETLS would be given preference in sponsoring training programmes.
Only courses approved by the concerned SSCs shall be considered for sponsoring by the NSFDC. Further, skill gap analysis conducted by National Skill Development Corporation shall also be factored for selection of the courses.
3.4    State Channelizing Agencies
State Channelizing Agencies (SCAs) of NSFDC will continue to play an important and effective role in proper selection of the trainees. Further, post training, the SCAs can also support the trainees by providing them access to financial assistance under NSFDC schemes for setting up micro enterprise level start-ups.
3.6    Promotion of skilling amongst women
NSFDC prescribes coverage of 40% women candidates in all its sponsored skill development training programmes for the target group.
4       Financing
At present, funds for sponsoring Skill training programs are received  from three sources – i) Grant in aid from the Ministry of Social Justice & Empowerment ii) Own resources, and iii) CSR funds. NSFDC, considering its limited resources available for skill training, shall continue to make efforts to avail the CSR funds from CPSEs and private sector enterprises. NSFDC may collaborate with the reputed SSC affiliated Training Providers to increase the coverage of trainees under the VETLS scheme of NSFDC. NSFDC shall try to mobilise CSR fund to be used as subsidy in convergence with the VETLS so that loan burden on the trainees could be reduced.
5       Monitoring & Evaluation
Training programs will be monitored by the staff/officers of the NSFDC by visiting the training centers and using video conferencing. Third party evaluation studies will be commissioned every year for ascertaining the relevance and outcome of skill training programs.

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