About National Skill Development Corporation, India
The National Skill Development Corporation India (NSDC) is a one of its kind, Public Private Partnership in India. It aims to promote skill development by catalyzing creation of large, quality, for-profit vocational institutions. It provides funding to build scalable, for-profit vocational training initiatives. Its mandate is also to enable support systems such as quality assurance, information systems and train the trainer academies either directly or through partnerships.
The NSDC was set up as part of a national skill development mission to fulfill the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skills.
The Finance Minister announced the formation of the National Skill Development Corporation (NSDC) in his Budget Speech (2008-09):
"...There is a compelling need to launch a world class skill development programme in Mission mode that will address the challenge of imparting the skills required by a growing economy. Both the structure and the leadership of the Mission must be such that the programme can be scaled up quickly to cover the whole country."
To contribute significantly (about 30 per cent) to the overall target of skilling / upskilling 500 million people in India by 2022, mainly by fostering private sector initiatives in skill development programmes and providing funding.
- 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
NSDC is a first-of-its-kind Public-Private Partnership (PPP) in India that facilitates skill development. A large part of its efforts are directed at skill development programmes in the unorganised sector.
NSDC acts as a catalyst in skill development by providing funding to enterprises, companies and organisations that provide skill training. It will also develop appropriate models to enhance, support and coordinate private sector initiatives.
The differentiated focus for the 21 sectors under NSDC’s purview and its understanding of their viability will make every sector attractive to private investment.
NSDC is a not- for- profit company set up by the Ministry of Finance, under Section 25 of the Companies Act. It has an equity base of Rs 10 crore, of which the Government of India accounts for 49%, while the private sector has the balance 51%.
To ensure superior decision-making, the NSDC requires a structure and governance model that provides it with autonomy, stature and continuity. Thus, the organisation has a tiered decision-making structure comprising:
- The Board of Directors
- Board Sub Committees
- Executive Council
- National Skill Development Fund (NSDF)
Each has a clear-cut role in the NSDC’s operations, activities and strategy to facilitate the organisation’s mandate of coordinating and stimulating private sector skill development programmes with enhanced flexibility and effectiveness.
The 14-member board has five government nominees, one of whom is the chairman of the corporation (from the private sector) and nine are private sector members. The NSDF is a 100% government-owned trust that invests in the NSDC, and is run by professional fund managers.