NSDC launches Scheme for Market-led fee based services

National Skill Development Corporation (“NSDC”), a Section 25 Company under the Companies Act, 1956 (corresponding to Section 8 of the Companies Act, 2013), was initially set up under the Prime Minister’s National Council on Skill Development with the primary mandate of enhancing and supporting private sector initiatives for Skill Development in India through appropriate Public-Private Partnership (“PPP”) models and striving for significant operational and financial involvement from the private sector. At present, NSDC functions under the aegis of the Ministry of Skill Development & Entrepreneurship (“MSDE”).

To foster skill development across the country, NSDC provides funding and non-funding support to enterprises, companies, and organizations across India to build capacity by providing technical assistance, financial support, branding support, thought leadership, knowledge management, and other support appropriate for the sector. Playing the role of a market-maker, NSDC is responsible for enhancing and strengthening skill development initiatives and ensuring long-term stability and growth of the sector.

NSDC through this Scheme endeavors to create a sustainable and enabling skill training ecosystem by promoting the provision of market-led Fee-based Services which are funded under the following models – (i) self-financed by the candidate, (ii) financed by the candidate or Partner through a loan or under an income-sharing arrangement with the Partner, (iii) financed by an employer, (iv) financed by a company or other corporate body under a program or as part of its CSR obligation, (v) financed by any charitable organization, or (vi) a combination of any of the above.

This Scheme also intends to establish a framework for aggregate and standardized training in high growth sectors by engaging ‘for-profit’ entities, ‘not for-profit’ entities, corporates, start-ups, trusts, societies, foundations, etc., as Partners on a service-to-service basis and provide joint certification with the Partner to the candidates, wherever such joint certification is desirable and feasible. The Scheme will help in creating a verifiable repository of data of all the candidates being trained by the Partners under the Scheme.

Objectives of the Scheme

The Scheme aims to

1. support Fee-based Services in high growth sectors and emerging technologies thereby creating a large pool of skilled and certified workforce for these sectors;
2. design, support and enable innovations in the fee-based training ecosystem;
3. scale outcome-oriented and successful fee-based training programs by providing financial and/or technical assistance, including concessional skill loans, industry partnerships, apprenticeship, access to Skill India Portal (“SIP”) and training networks and other enabling support;
4. create a large pool of skilling, re-skilling, and upskilling Fee-based Services to enable lifelong learning and improved productivity of working professionals
5. aggregate data of certified trainees on a single digital platform for creating a repository and reporting and monitoring through SIP.

Features of the Scheme

At the time of submitting the Proposal, the Applicant shall be required to provide details of the prospective Services it intends to offer in association with NSDC under this Scheme. A Partner whose Service has already been approved under the Scheme may also submit a Proposal for including additional Services as part of the Scheme by submitting the details of the Service. In such cases, ordinarily, the Service alone may be assessed and approved without going through a detailed assessment of the Applicant, unless NSDC determines that such assessment is required on a case-to-case basis.

NSDC at its discretion may prescribe variable assessment criteria and processes for different classes of Applicants, such as Applicants already registered for one Service applying for another Service, Applicants who are already registered as a training partner with NSDC, and Applicants who are not registered with NSDC at all.

The Eligible Entity that intends to register with NSDC for organizing certain Services under this Scheme at the time of submitting the Proposal or at the time of submitting a request for approval of a specific Service should preferably aim for the following–

1. The Services introduced by the Applicant should include courses, programs, or services for skilling, up-skilling, and re-skilling the candidates intended to get trained in different sectors.
2. The Services offered by the Applicant are designed in a way to develop necessary skills in a candidate from an employability perspective and/ or shall be able to generate appropriate employment opportunities for the said candidates including setting up of a registered enterprise.
3. If the Services include courses or programs organized by Applicant, then such courses or programs shall preferably meet the QP NOS standards and be aligned with NSQF. NSDC may however on a case-to-case basis relax this requirement subject to the Applicant demonstrating that there is demand for the non-NSQF mapped courses, programs, or services in the market with suitable employment opportunities for the trainees. NSDC reserves its right to further relax the aforesaid requirement if the sole satisfaction and judgment of NSDC, the Services organized by the Applicant intend to cater to the vulnerable segments of the society including but not limited to gig workforce, women, and un-catered geographies and sectors.
4. The minimum annual pay scale offered to the candidates post-completion and certification of a specified course or program forming part of the Service approved under the Scheme shall comply with the minimum wages legislation for a particular state where the Partner is operating.
5. The Services are preferably organized in an online mode or hybrid mode to maximize their reach unless the nature of the Service demands otherwise.

6. The Services are designed to address the need of the high-growth sectors identified by the Government of India such as IT, electronics, entrepreneurship, etc.

7. The Applicant shall provide various payment options for the fee to the candidates, including online and digital payment options. While approving a Service under the Scheme, NSDC reserves the right to set out additional criteria for assessment of learning outcomes and/ or other tangible deliverables or outcomes that the Service must achieve including for Services that are specifically for up-skilling or re-skilling of the candidates/ service recipients.

Benefits available to partners under the Scheme

The Partner will be eligible for the following benefits under the Scheme concerning the Services approved under the Scheme subject to the approval of the Partner and the Services under the Scheme:

1. Soft loans in the form of concessional term loans to Partners.
2. Leverage training delivery ecosystem and branding for mass outreach and awareness.
3. Uniformity in certifications vide system-generated joint certification with NSDC, wherever desirable and feasible.
4. Opportunity to use the name and brand logo of NSDC in relation to the promotion of the approved Service, on terms and conditions set out by NSDC.
5. Opportunity to participate in new initiatives or opportunities offered by NSDC, subject to the eligibility and other conditions of such initiatives or opportunities.
6. Opportunity to participate in programs of NSDC designed in partnership with corporates under their CSR for skilling and livelihood generation.
7. Subscription to digital/ e-SkillIndia, the e-learning aggregator platform of NSDC. The Partner may also be able to place the details of its Services approved under the Scheme on a national portal of repute to enhance visibility and business with associated marketing as a separate service for an additional cost.
8. Opportunity to participate in the apprenticeship and industry partnerships of NSDC.
9. Opportunity to participate in Skill Loan Scheme of NSDC in partnership with NBFI partners of NSDC.
10. Opportunity to work with NSDC and Sector Skill Councils for NCVET accreditation of Non-NSQF aligned training programs.

It is clarified that NSDC may provide additional criteria or conditions for a Partner being eligible to obtain the benefits or services set out above. Mere registration as a Partner shall not entitle such Partner to the benefits set out above automatically.

Affiliation as Partner

Any Eligible Entity having relevant experience in skill development may submit a Proposal to become a Partner of NSDC. The Proposal shall be in the prescribed format and shall include details of the Services proposed to be offered by the Partner under the Scheme. The Services forming part of the Proposals must be robust and cater to sectors with high growth, unmet needs, and/ or unorganized sector.

The Services must be outcome-oriented and should focus on placement in industry, self-employment opportunities or entrepreneurship, and upskilling.

The Proposal submitted to NSDC in the prescribed format will go through the process of test of responsiveness, legal, technical and financial due diligence, as may be required by NSDC in its sole discretion, followed by consideration by appropriate authority/ committees. As part of the appraisal process, the credentials of the Applicant and its promoters and sponsors, past track record, the robustness of training implementation model, current and past financials, management team, nature of the Service, pedagogy, business plans, skilling outcome, employability, and industry linkages are some key aspects that may be evaluated by NSDC. NSDC may also ask for additional information as deemed fit during proposal evaluation and the same shall be provided by the Applicant.

For the purpose of screening and approval of the Proposals, if it is deemed fit by NSDC for one or more Proposals or a class of Proposals, NSDC may set up Proposal Evaluation Committee (“PEC”) and Proposal Approval Committee (“PAC”). The approval of the Proposal and grant of ‘Partner’ status to the Applicant shall be subject to the sole satisfaction of NSDC as per the partnership guidelines, the viability of the Proposal submitted, and expected outcomes from the Partner. At the time of approval of a Proposal, NSDC may prescribe such terms and conditions as it may deem fit, and the Partner shall comply with such terms and conditions, as prescribed.

An Applicant may submit a Proposal under the following categories:

• Funded Affiliation
  • NSDC’s Funded Affiliation is an affiliation where an Applicant submits a Proposal for availing financial assistance from NSDC for Services approved under the Scheme. The proposed Services must be fee-based and outcome-oriented and should focus on placement in industry, self-employment opportunities or entrepreneurship, and up-skilling/ re-skilling.
    The funding limits, the requirement for promoter contribution (and evidence of such promoter contribution as may be required), and end-use of the funding provided as part of Funded Affiliation shall be as per the Funding Guidelines.
    The tenure of Funded Affiliation shall be such as may be prescribed in the Funding Guidelines. It is clarified that any Proposal for Funded Affiliation approved under the Scheme during the Scheme Period shall continue for its tenure notwithstanding that the Scheme Period has expired. Proposals need to be submitted in the prescribed format and they shall be evaluated following the concerned Funding Guidelines and procedures determined by NSDC in its sole discretion, including the ‘Financial Management & Procurement Manual’, as amended from time to time and available at the website of NSDC.
    The Services forming part of the Proposals submitted for grant of Funded Affiliation should be robust and should preferably cater to geographies and/or sectors with unmet needs. Ideally, the business model should serve high growth sectors, unorganized sectors, or training to develop the skill ecosystem. The Proposal submitted must be outcome-oriented and should focus on employability through placement in industry and/ or self-employment opportunities.
    The Funded Affiliation is further aligned to the philosophy that the business plans and viabilities thereof will be different for a ‘for-profit’ entity and a ‘not-for-profit’ entity.
    NSDC shall evaluate the financial viability of the Service(s) forming part of the Proposal. For Applicants who are ‘not-for-profit’ entities, NSDC may on a case-to-case basis approve financial assistance on such terms and conditions as it may deem fit.
    The approval for Funded Affiliation shall be in accordance with the Funding Guidelines of the NSDC, as amended from time to time, and made available on the website of NSDC. It is clarified that the decision to provide funding shall be at the sole discretion of NSDC and its decision shall be final and binding upon the Applicant.
    Without prejudice to the Funding Guidelines, NSDC shall execute appropriate agreements with the Applicant whose Proposal has been approved for a grant of the financial assistance, in the formats made available at the website of NSDC.
• Non-Funded Affiliation
  • NSDC’s Non-Funded Affiliation is an affiliation where an Applicant submits a Proposal to become part of the ‘Skill India’ Mission and not for obtaining any financial assistance from NSDC.
    The Services under the Non-Funded Affiliation must be outcome-oriented and should focus on placement in industry, self-employment opportunities, or entrepreneurship and upskilling and such Services may be eligible for co-branding opportunities with NSDC for approved Services under the Scheme.
    The eligibility conditions for an Applicant to apply under the Scheme for Non-Funded Affiliation shall be as per the Non-Funding Guidelines available on the website of NSDC. Upon receipt of the Proposal for Non-Funded Affiliation, the Proposal shall go through the process of test of responsiveness, legal, financial, and technical due diligence and shall follow such evaluation procedure as determined by NSDC, including evaluation by PEC and PAC, if it is so deemed for specific Proposals or a class of them. As a part of the evaluation process, NSDC may, at any point in time, call for details and documents not limited to the credentials of the promoter, past track record, the robustness of the model, current and past financials, management team, outcome linkages, and any other additional information as may be required.
    NSDC shall execute appropriate agreements with the Applicant whose Proposal has been approved for a grant of the Non-Funded Affiliation. It is clarified that any Proposal for Non-Funded Affiliation approved under the Scheme during the Scheme Period shall continue for its tenure notwithstanding that the Scheme Period has expired. The performance of the Partner under Non-Funded Affiliation shall be subject to periodic review and NSDC will issue a certificate to the Partner on yearly basis subject to the Partner having fulfilled the performance parameters for Non-Funded Affiliation as may be specified by  NSDC from time to time. The approved Non-Funded Partner may be eligible for such benefits as approved under the Scheme and Non-Funding Guidelines, on such terms and conditions as may be prescribed by NSDC from time to time.
    It is clarified that the decision to provide Non-Funded Affiliation shall be at the sole discretion of NSDC and its decision shall be final and binding upon the Applicant.
    The approval for Non-Funded Affiliation shall be in accordance with the Non-Funding Guidelines of the NSDC, which are available on the website of NSDC.

Submission of Proposal by the Applicant

Any Eligible Entity that intends to get affiliated (whether Funded Affiliation or Non-Funded Affiliation) with the NSDC under this Scheme shall submit a Proposal under a prescribed format(s) for Funded Affiliation and Non-Funded Affiliation along with relevant documents. The prescribed format is available on the website of NSDC and may be downloaded from the same. The said proposal shall be accompanied by a processing fee set out in Part-I to Annexure-A. It is clarified that the processing fee shall be subject to revisions made by NSDC from time to time.

NSDC may provide certain services to the Partners on such terms and conditions and on payment of fee as may be prescribed by NSDC. Out of the services offered by NSDC, the Partner may avail of one or more services that it may require. The fee for such services shall be such as may be agreed between NSDC and the Partner.

The Applicant shall further provide the following details at the time of submission of the Proposal or at the time of submitting a request for approval of a specific Service in the prescribed format:

• Details of the Service offered including the fee charged, eligibility criteria, duration of the service, curriculum offered, mode of training, and the quality assurance.
• The objectives of the Service, the competencies, skilling outcomes, and capabilities the Service intends to inculcate in a candidate.
• Details of resources, infrastructure, and trainers required and it’s/their availability with the Applicant, and resource planning and funding plan.
• Details of the pedagogy, and assessment mechanism or evaluation format or criteria.
• Industry linkage and placement commitment offered by the Partner to the candidate.
• Minimum yearly remuneration that the candidate shall be able to command after receiving the Service, in case of a skilling Service.
• The Applicant shall along with the Proposal, provide details regarding its past performance and experience in skill training along with past placement records, wherever applicable.
• Any other information as may be required by NSDC from time to time