Skill Development Funding FAQs
Funding FAQs

Skill Development Funding FAQs

1. How do I obtain funding from NSDC for skill development initiatives?

NSDC calls for proposals in select areas (sectors/ utilities) from time to time. To receive funding, an organisation needs to submit a proposal in response to the call for a proposal. Proposals are invited from private players, industry bodies, entrepreneurs and NGOs in a prescribed template.

Once the organisation receives a proposal, it will be evaluated thoroughly. It will be accepted for funding based on the organisation’s evaluation and subject to clearance by the NSDC Board.

After the funding is granted, the NSDC will continuously monitor the use of  funds, the progress of the project and impact on skill development. To know more about the proposal evaluation process, click here.

2. What is the proposal evaluation process?

On receiving a proposal, the NSDC will adopt a phased and detailed due-diligence process. Detailed evaluation will be done across pre-defined sets of criteria. To know more about the process, click here.

Among other things, proposals are evaluated based on the following guidelines:

  • Sustainability of the business model in the medium to long term
  • Partnerships with prospective employers, state governments and financial institutions

To know more about the criteria for evaluating proposals, click here.

3. What are the criteria for consideration of proposals?

The NSDC seeks proposals that target scarce skill sets or student populations with huge unmet needs and focuses on large-scale, high-quality training institutes.

Technology and Innovation

NSDC is keen on promoting development of innovative models in the skill development space. Hence, proposals that include a pioneering business plan and can have a “multiplier” effect in skill development and/or engage unique technology to transfer skill development to trainees are actively sought. E.g. simulation technology pedagogy.

Use of Existing Infrastructure

Proposals that deploy operating plans which leverage use of existing infrastructure are encouraged. Hence, proposals that intend partnerships with any existing training centers e.g. ITI s and ITCs will be looked at with special interest.

Besides, the organisation takes into consideration the following guidelines while evaluating proposals:

  • The proposal should preferably identify and target the most important skill development gap in a sector / region
  • It should aim to cover a significant portion of the priority target segment
  • The proposal should not expect the NSDC to fund 100% of the total project cost
  • It should preferably not expect the NSDC to fund the entire amount as a grant
  • The proposal should preferably be in the following priority sectors identified by the Planning Commission:


  • Automobile / auto component
  • Electronics hardware
  • Textiles and garments
  • Leather and leather goods
  • Chemicals and pharmaceuticals
  • Gem and jewellery
  • Building and construction
  • Food processing
  • Handlooms and handicrafts
  • Building hardware and home furnishings


  • IT or software services
  • Tourism, hospitality and travel
  • Transportation/ logistics/ warehousing, and packaging
  • Organised retail
  • Real estate services
  • Media, entertainment, broadcasting, content creation, animation
  • Healthcare
  • Banking/ insurance and finance
  • Education/ skill development


4. What entities are eligible for funding?

The following is an indicative list of entities that are eligible for funding:
  1. Industry
  2. Training & Skill Development organisations
  3. Non Governmental Organisations (NGOs)
  4. Business Associations
  5. Social Entrepreneurs

5. Where should funds obtained from NSDC be utilized?

The funds obtained from NSDC cannot be utilized for land acquisition and / or for the construction of buildings. NSDC promotes the use of existing infrastructure and would like the funds provided to be used solely to meet expenses related to training and skill development.


  • Financing either as loans or equity
  • Supporting incentives to private sector initiatives