Funding | National Skill Development Corporation (NSDC)

NSDC Funded Affiliation - Overview

Catalyze the creation of sustainable and quality skills training institutions across the country.
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 in sectors where market mechanisms are weak or missing
Prioritize initiatives that can have a multiplier or catalytic effect on capacity and quality of skilling in India

The Funding Guidelines provide for a differentiated approach for ‘for-profit’ entity and ‘not-for-profit’ entity

Key Elements of NSDC Funded Affiliation

Parameter	NSDC Funding Guideline
Eligibility	Any legal entity including, but not limited, to Company/ Society / Trust as per the process and applicable laws and guidelines
What Gets Funded	Total investment requirement towards – Training Infrastructure (excluding the acquisition/creation of immovables); Working Capital
Interest Rate	6% p.a.
Principal Moratorium Period	Up to 3 years
Interest Moratorium Period	NIL
Repayment Period	7 years (including moratorium period)
Promoters Contribution	Minimum 15% of the investment requirement ( not-for-profit entities ) Minimum 25% of the investment requirement ( for-profit entities )
Training Commitment	Standard Proposals	Corporates – Listed in BSE/NSE for more than 3 years with a credit rating of A- or above or foundations/similar ventures	Private Universities, Engineering Colleges, ITI, Polytechnics
Training Commitment	Standard Proposals 20,000 persons over 7 years	Corporates – Listed in BSE/NSE for more than 3 years with a credit rating of A- or above or foundations/similar ventures of such organisations 5,000 persons per centre over 7 years	Private Universities, Engineering Colleges, ITI, Polytechnics 5,000 persons per centre over 7 years
Placement Guarantee Commitment	At least 70%
Collateral	First charge on assets of the project First charge on cash flows of the project First charge on IP developed under the project Personal Guarantee/ Corporate Guarantee/ Put-Option on another Associate Company Pledge of shares to the tune of minimum 51% of the equity of the project implementing entity ( for-profit entities ) Pledge letters to be taken ( not-for-profit entities ) Post Dated Cheques Hard collateral (including but not limited to bank guarantee/ mortgage of immovable property/ lien on fixed deposits etc.) covering minimum 30% of the loan amount

CORPORATE GREEN CHANNEL ROUTE

NSDC under this partnership model shall closely work with the corporate to develop their model of engagement and provide advisory support. The objective of Corporate Green Channel Route is to provide ease of partnership to corporates who want to be associated with NSDC but do not require funding or grant support from NSDC. It comes with a unique opportunity to provide corporate and NSDC co-branded skill certification to the candidate.

Eligibility Criteria:

Any entity having positive net worth at the end of FY 18-19 (or as applicable) and meeting at least any two of the four conditions mentioned below shall be considered as a Corporate:

Listed on BSE or NSE
The entity should have demonstrated sustainable growth over the years; Average annual turnover of over and above INR 200 crores for last three financial years
Credit rating of ‘BBB’ category or above from an RBI registered credit agency
Number of employees on direct employment with the company (on-roll employees) should be at least 1,000 as on last reporting date of audited financials

The corporate should be the lead applicant for the partnership and its primary business shall not be skill development. The lead applicant should have the ability to exercise management control over the implementing entity which can be an associate/group entity.

Partnership Model:

Salient Features

Details

In-principle Partnership with-in 72 working hours

Proposing entity meeting the eligibility criteria shall be provided with an in-principle partnership, basis the following mandatory documents:
- Letter of Intent to become NSDC partner
- Demand Draft in favor of NSDC for the processing fee
In cases where the proposing corporate entity identifies an implementing entity other than itself for the project the implementing entity to receive NSDC partnership status.

Processing fee

The fee shall be realized in two stages:

Application fee: to be paid at the time of submission of the application
Application Fee per proposal (Non-refundable) INR 75,000

Approval fee: to be paid at the time of signing of agreement
Approval Fee per proposal* INR 1,25,000
* NIL approval fee for corporate with annual CSR contribution/spend towards skill development of INR 2 crore or above

Key Objectives/ KPIs/ Action Plan

Few of the Objectives/ KPIs that could be covered as part of the corporate proposal includes:

Delivery of industry driven trainings through quality infrastructure and trainer capabilities
Creating a Centre of Excellence for Skill Development
Delivering Training of Trainers program for their sector of interest
Progressive approach towards the skill eco-system through disruptive ideas, joint ventures, foreign collaborations etc.

The Project proposal may consider various models available for collaboration to ensure quality and high impact.

Partnership Period

A 2-year partnership is envisaged to execute the identified KPIs or Action Plan

Due-Diligence Process

The due-diligence process for the partnership shall be advisory led.

Applicant entity meeting eligibility to get in-principle NSDC Corporate Partnership with-in 72 working hours of application to NSDC
The final partnership shall be subject to internal approvals post detailed due diligence of the proposal

Certification for Training completed

The Corporate can issue a self-signed certificate or through relevant Sector Skill Council to the candidate towards successful completion of training for students mobilized under the following channels:

Fee-based model with student paying the fees
CSR sponsored fee per trainee
Corporate sponsored training of employees

List of Documents to be submitted

Letter of Intent to become an NSDC partner along with details of eligibility parameters
Resolution assigning Authorised Signatory to execute documents on behalf of the entity
Proposal document (To be jointly developed by NSDC and Corporate)

Applicable Guidelines

NSDC Monitoring Guidelines for Non-Funding partnership under point no. 2
(https://nsdcindia.org/sites/default/files/monitoring-sop.pdf)
NSDC Branding & Communication Guidelines
Any other guidelines specific to the scheme/project undertaken

NSDC Non-Funded Affiliation - Overview

NSDC can co-opt reputed entities with established credentials who wish to be a part of the “Skill India” and/or “Make in India Mission” but do not require funding and want to be a partner. Proposals submitted should be robust and catering to sectors with high growth, unmet needs and/or unorganized sector. Proposals must be outcome oriented and should focus on placement in industry, self-employment, entrepreneurship.

Key Elements of Non-Funded Affiliation

Parameter	NSDC Funding Guideline
Eligibility (corporates)	Entity with more than 5 years in operation with sustainable growth. For Entity listed in BSE/NSE with more than 5 years with sustainable growth and with a credit rating of A- and above, separate TOR and due-diligence process may be apllicable
Eligibility (not-for-profit)	Not for profit entity having more than 5 years of sustainable growth. For not for profit entity previously funded by entities like World Bank, ADB, MSDF, UNDP etc. or foundation/social ventures of large corporates. For such entities separate TOR, and due-diligence process may be applicable
Training Outcome	Minimum of 2,000 over a period of 3 years with placement commitment of 70% ( Corporates ) Minimum of 5,000 over a period of 3 years with a placement commitment of 70% ( not-for-profit ) Approved projects need to adhere to the tenets of NSDC monitoring system. Proposal should focus on linkages with industry for training and placement, livelihoods, self-employment, entrepreneurship or upskilling. Courses need to be aligned to specific SSC QP/NOS In Case of achievement of 70% of the committed target the partnership will be automatically renewed annually

Multi Stage Selection Process

Note:- Active Involvement of Government, Industry Leaders & Leaders from Social Sector for approving projects ensuring interest of all stakeholders.

PMKK- Pradhan Mantri Kaushal Kendra

Vocational training needs to be made aspirational to transform India into the skill capital of the world. In line with the same, Ministry of Skill Development and Entrepreneurship ( MSDE ) intends to establish visible and aspirational model training centres in every district of the country. NSDC is the implementation agency for the project. These training centres will be state of the art Model Training Centres ( MTCs ), called as Pradhan Mantri Kaushal Kendra ( PMKK ). The model training centres under the PMKK program aim to:

Create benchmark institutions that demonstrate aspirational value for competency based skill training
Focus on elements of quality, sustainability and connect with stakeholders in skills delivery process

Funding support under PMKK

Capital Expenditure

NSDC will provide concessional loan funding per centre, up to 75% of the project investment, to cover expenditure related to:

Training infrastructure including purchase of plant, machinery & equipment
Training aid and other associated items
Civil work including setting up prefabricated structures and retrofit existing structures

Operations Support

The sustainability of the centres will be assured against dedicated training numbers under Pradhan Mantri Kaushal Vikas Yojna ( PMKVY ) or its successor schemes (any other scheme under MSDE or NSDC). Each PMKK will be assured a training mandate for three years, under the PMKVY scheme, as per common norms, subject to capacity and utilization of the centre.

Invitation for Proposal

NSDC invite proposals for funding in several sectors. Here you will find documents and guidelines to be followed to be an NSDC affiliated training partner.

Join the Skill India Mission by becoming NSDC training partner. To know more about the same

Workshops are organized from every Monday to Friday, 4.30 to 5.30 pm at NSDC office
Call NSDC training helpline number – 92892-00333, available from Monday to Friday between 9 am to 6 pm

Proposals Submission Guidelines

NSDC Funding Guidelines
Non Funding Proposal Guidelines
Notice-Fee Structure for Affiliation

Proposal Submission Docket

These Technical & Financial templates are required to be submitted with all proposals along with the declaration.

Funding Proposal Docket
Corporate Green Channel Route - Proposal Submission Docket
Non-Funding Proposal Docket
Draft Investment Agreement Template
Draft Revenue Sharing Agreement Template
Draft Loan Template

Draft Agreement Docket

Company
Society & Trust
Non Funding

FAQs

FAQs- Funding, Non Funding, Entrepreneur, Training Institute

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