Skill Development Mission

AN INITIATIVE OF SHIVNANDANI INDUSTRIES PVT LTD AND JAGDAMB JANAKI NAWAL JANAKI
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Skill Development Mission
CompiledbyCol Mukteshwar Prasad(Retd), MTech,CE(I),FIE(I),FIETE,FISLE,FInstOD,AMCSI
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7/12/2015

Skill Development Mission
Prime Minister Narendra Modi on 15 Jul 2015 launched his pet project Skill India Campaign in
New Delhi on the occasion of the first ever World Youth Skills Day which included the launch
of the National Skill Development Mission and unveiling of the new National Policy for Skill
Development and Entrepreneurship 2015.
"Through a policy driven approach we have waged a war against poverty and we have to win this
war. India's youth is not happy simply asking for things. He or she wants to live with pride and
dignity. I believe Indian youth has immense talent, they just want opportunities," Modi said.
The Prime Minister said that each poor, underprivileged youth was a soldier in this war. "This
mission is not limited to skill, we have linked entrepreneurship to it," the prime minister said.
He said over the next decade India will have a surplus manpower of 4-5 crore and emphasised
the need to provide this youthful manpower with skills and ability to tackle global challenges.
Modi warned that the demographic dividend would otherwise become a challenge in itself.
"And the demographic dividend India is proud of, it's guarantee lies with skill and trained
manpower," he said.
The Prime Minister said that while in the 20th century the IITs made a name for themselves
globally, now in the 21st century ITIs (Industrial Training Institutes) should acquire global
recognition for producing quality skilled manpower.
He also called for constant updating of training programmes and syllabi to ensure that the youth
are exposed to the latest technology and industry environment. Linking the necessity to promote
both apprenticeship and entrepreneurs, the prime minister said that it was important to predict the
possibilities of the future and prepare for them today itself.
The launch of the mission assumes significance as "India currently faces a severe shortage of
well-trained, skilled workers. It is estimated that only 2.3% of the workforce in India has
undergone formal skill training as compared to 68% in the UK, 75% in Germany, 52% in USA,
80% in Japan and 96% in South Korea. Large sections of the educated workforce have little or
no job skills, making them largely unemployable. Therefore, India must focus on scaling up skill
training efforts to meet the demands of employers and drive economic growth", the document on
the framework of implementation of the National Mission for Skill Development said.
According to the note of implementation, more than 54 percent of the country's population is
below the age of 25 allowing it with an opportunity to provide a skilled workforce to fill the
expected shortfall in the ageing developed world.
"The country’s population pyramid is expected to bulge across the 15–59 age group over the next
decade. This demographic advantage is predicted to last only until 2040. India therefore has a
very narrow time frame to harness its demographic dividend and to overcome its skill shortages,"
the document said.

Ministry of Skill Development and entrepreneurship
The Ministry is responsible for co-ordination of all skill development efforts across the country,
removal of disconnect between demand and supply of skilled manpower, building the vocational
and technical training framework, skill up-gradation, building of new skills, and innovative
thinking not only for existing jobs but also jobs that are to be created.
The Ministry aims to Skill on a large Scale with Speed and high Standards in order to achieve its
vision of a 'Skilled India'.
It is aided in these initiatives by its functional arms – National Skill Development Agency
(NSDA), National Skill Development Corporation (NSDC), National Skill Development Fund
(NSDF) and 33 Sector Skill Councils (SSCs) as well as 187 training partners registered with
NSDC. The Ministry also intends to work with the existing network of skill development centres,
universities and other alliances in the field. Further, collaborations with relevant Central
Ministries, State governments, international organizations, industry and NGOs have been
initiated for multi-level engagement and more impactful implementation of skill development
efforts.
National Policy on Skill Development and Entrepreneurship 2015
 Ministry is an integral part of the government policy on "Sabka Saath, Sabka Vikaas" and its
commitment to overall human resource development to take advantage of the demographic
profile of our country's population in the coming years. Developing a comprehensive and
holistic policy document is an integral part of the process. This requires a fresh look at the
already existing National Policy on Skill Development (NPSD), 2009.
 The objective of the National Policy on Skill Development and Entrepreneurship, 2015
will be to meet the challenge of skilling at scale with speedand standard (quality). It will
aim to provide an umbrella framework to all skilling activities being carried out within the
country, to align them to common standards and link the skilling with demand centres. In
addition to laying down the objectives and expected outcomes, the effort will also be to
identify the various institutional frameworks which can act as the vehicle to reach the
expected outcomes. The national policy will also provide clarity and coherence on how skill
development efforts across the country can be aligned within the existing institutional
arrangements.This policy will link skills development to improved employability and
productivity.
National Skill Development Corporation(NSDC)
The National Skill Development Corporation India (NSDC) was setup as a one of its kind, Public
Private Partnership Company with the primary mandate of catalysing the skills landscape in

India. NSDC is a unique model created with a well thought through underlying philosophy based
on the following pillars:
 1. Create: Proactively catalyse creation of large, quality vocational training institutions.
 2. Fund: Reduce risk by providing patient capital. Including grants and equity.
 3. Enable: the creation and sustainability of support systems required for skill
development. This includes the Industry led Sector Skill Councils.
The main objectives of the NSDC are to:
 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
 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.
Partnerships
NSDC operates through partnerships with multiple stakeholders in catalysing and evolving the
skilling ecosystem.
 Private Sector – Areas of partnerships include awareness building, capacity creation,
loan financing, creation and operations of Sector Skill Councils, assessment leading to
certification, employment generation, Corporate Social Responsibility, World Skills
competitions and participation in Special Initiatives like Udaan focused on J&K.
 International Engagement – Investments, technical assistance, transnational standards,
overseas jobs and other areas.
 Central Ministries – Participation in flagship programmes like Make in India, Swachh
Bharat, Pradhan Mantri Jan Dhan Yojana, Smart City, Digital India and Namami Ganga,
among many others.

 State Governments – Development of programs and schemes, alignment to NSQF and
capacity building, operationalization of program, capacity building efforts among others.
 University/School systems – Vocationalisation of education through specific training
programs, evolution of credit framework, entrepreneur development, etc.
 Non-profit organizations – Capacity building of marginalized and special groups,
development of livelihood, self-employment and entrepreneurship programs.
 Innovation – Support to early-stage social entrepreneurs working on innovative
business models to address gaps in the skilling ecosystem, including programs for
persons with disability.
National Skill Development Agency (NSDA)
The National Skill Development Agency (NSDA), an autonomous body, (registered as a Society
under the Society's Registration Act 1860) was created with the mandate to co-ordinate and
harmonise the skill development activities in the country, is part of the Ministry of Skill
Development & Entrepreneurship (MSDE).
Functions : Gazette Notification of NSDA
 Take all possible steps to meet skilling targets as envisaged in the 12th Five Year Plan
and beyond.
 Coordinate and harmonize the approach to skill development among various Central
Ministries/Department. State Governments, the NSDC and the Private sector.
 Anchor and operationalize the NSQF to ensure that quality and standards meet sector
specific requirements
 Be the nodal agency for State Skill Development Missions
 Raise extra-budgetary resources for skill development from various sources such as
international agencies, including multi-lateral agencies, and the private sector.
 Evaluate existing skill development schemes with a view to assessing their efficacy and
suggest corrective action to make them more effective.
 Create and maintain a national data base related to skill development including
development of a dynamic Labour Market Information System (LMIS).
 Take affirmative action for advocacy.
 Ensure that the skilling needs of the disadvantaged and the marginalized groups like SCs,
STs, OBCs, minorities, women and differently abled persons are taken care of and.
 Discharge any other function as may be assigned to it by the Government of India.
Activities undertaken by the NSDA
Besides anchoring and implementation, the National Skills Qualifications Framework (NSQF),
some of the other actions taken by the NSDA are as under:
1. Rationalization of the Skill Development Schemes of the Government of India

NSDA has worked with the concerned ministries and stakeholders to achieve convergence of
norms across the various central schemes for skill development, while at the same time
recognizingthe special needs of the North Eastern States, the hill States, and other geographies
that pose challenging situations for skill development.
2. Creation of an integrated Labour Market Information System
A national database on all major aspects of skill development is being created in partnership with
all other Ministries of the Government of India and the State Governments. This would be a one-
shop stop where all the relevant information is freely available to citizens. The government has
created a National Steering Committee for setting up the Labour Market Information System
(LMIS). The LMIS would bring in operational efficiencies, would be transparent and available to
all, and would help reduce considerably the situation of one individual being benefitted under
different schemes.
3. Engagement with States
The NSDA is newactively engaged with the various State governments to plan out their skill
development action plan, help them develop their skill development policies, and set up suitable
administrative mechanisms. Through Technical Assistance programmes with the Asian
Development bank (ADB), European Union (EU) and DFID (Department for International
Development of the Government of UK), NSDA is helping the State Skill Development
Missions of eleven states build their respective capacities.
4. Skills Innovation Initiative
A committee has been set up under the Skills Innovation Initiative housed under the NSDA. The
NSDA invites innovative ideas, concepts and practices on skill development. The Committee
reviews all the proposals of innovations to facilitate their application on a wider scale. Selected
innovative practices will be facilitated and propagated for wider application. Five innovative
approaches and solutions have already been identified for wider propagation.
National Skill Development Fund
The National Skill Development Fund was set up in 2009 by the Government of India for raising
funds both from Government and Non Government sectors for skill development in the country.
The Fund is contributed by various Government sources, and other donors/ contributors to
enhance, stimulate and develop the skills of Indian youth by various sector specific programs. A
public Trust set up by the Government of India is the custodian of the Fund. The Trust accepts
donation, contribution in cash or kind from the Contributors for furtherance of objectives of the
Fund. The Fund is operated and managed by the Board of Trustees. The Chief Executive Officer
of the Trust is responsible for day-to-day administration and management of the Trust.
The Fund meets its objectives through National Skill Development Corporation (NSDC) which
is an industry led ‘Not For Profit Company’ set up for building skill development capacity and

forging strong linkages with the market. NSDC acts as a catalyst in skill development by
providing funding to enterprises, companies and organizations that provide skill training. It also
develops appropriate models to enhance, support and coordinate private sector initiatives. Till
31st March 2015, NSDF has released Rs. 2333 crore to NSDC towards skill development
programmes including National Skill Certification and Monetary Reward Scheme (STAR) and
UDAAN Scheme (J&K oriented). NSDC with 160 training partners and 1722 training centres
has so far trained around 35 lakh persons across India.
Accounts of the Trust are subject to CAG Audit and are also audited by a Chartered Accountant
for every financial year and in such manner as may be directed by GOI. The Trust has engaged
IL&FS Trust Company Ltd (ITCL), one of the largest Corporate Trustees in India, for providing
micro prudential oversight on the implementing partner and monitoring the interests of Trust.
Sector Skill Councils (SSC)
Sector Skill Councils are set up as autonomous industry-led bodies by NSDC. They create
Occupational Standards and Qualification bodies, develop competency framework, conduct
Train the Trainer Programs, conduct skill gap studies and Assess and Certify trainees on the
curriculum aligned to National Occupational Standards developed by them.
Till date, the NSDC Board has approved proposals for 37 Sector Skill Councils. There are
approximately 450 Corporate Representatives in the Governing Councils of these SSCs. The list
of SSCs is given below.

The Ministry has been actively engaging with these SSCs.
 Ministry of Skill Development & Entrepreneurship under the Chairmanship of the
Hon'ble MoS (I/C) held meetings with all the Sector Skill Council (SSC) in the months of
December, 2014 and January, 2015 to integrate them into the National Agenda on
Skilling.
 The Hon'ble MoS was also part of the Governing Councils meeting of 6 Sector Skill
Councils viz. Beauty & Wellness, IT & ITeS, Telecom, Aviation & Aerospace, Rubber and
Hospitality & Tourism Sector Skill Councils which were held over the last 3 months.
 The Ministry also organized meetings at the Joint Secretary level with the line Ministries
of Sector Skill Councils like Capital Goods, Telecom, Mining, Shipping to align the
activities of the SSC completely with these Ministries.
 The Ministry, along with NSDC and Sector Skill Councils, organized sectoral workshops
on National Occupational Standards in February 2015.
 The Ministry has issued a notification that enables SSCs to join the list of non-statutory
bodies which issue nationally recognised skills certificates

Skill Development Mission

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