National Skill Development Corporation (NSDC) is a not-for-profit public limited company incorporated on July 31, 2008 under section 25 of the Companies Act, 1956 (corresponding to section 8 of the Companies Act, 2013). NSDC was set up by Ministry of Finance as Public Private Partnership (PPP) model. The Government of India through Ministry of Skill Development & Entrepreneurship (MSDE) holds 49% of the share capital of NSDC, while the private sector has the balance 51% of the share capital.
NSDC aims to promote skill development by catalyzing creation of large, quality and for-profit vocational institutions. Further, the organisation provides funding to build scalable and profitable vocational training initiatives. Its mandate is also to enable support system which focuses on quality assurance, information systems and train the trainer academies either directly or through partnerships. 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. The differentiated focus on 21 sectors under NSDC’s purview and its understanding of their viability will make every sector attractive to private investment.

Vision & Mission








Vision

NSDC was set up as part of a national skill development mission to fulfil the growing need in India for skilled manpower across sectors and narrow the existing gap between the demand and supply of skills. The then Union Finance Minister Shri P. Chidambaram announced the formation of the NSDC in his 2008-09 Budget Speech. "There is a compelling need to launch a world-class skill development programme in a 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."

Mission

  • 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 private sector.
  • Play the role of a ‘market-maker’ by bringing funds, particularly in sectors where market mechanisms are ineffective or missing.
  • Prioritise initiatives that can have a multiplier or catalytic effect as opposed to one-off impact.

Objective

To contribute significantly to the overall target of skilling up of people in India, mainly by fostering private sector initiatives in skill development programmes and to provide funding. 

Overview








The NSDC facilitates initiatives that can potentially have a multiplier effect as opposed to being an actual operator in this space. In doing so, it strives to involve the industry in all aspects of skill development.
The approach is to develop partnerships with multiple stakeholders and build on current efforts, rather than undertaking too many initiatives directly, or duplicating efforts currently underway. To scale up efforts necessary to achieve the objective of skilling / up-skilling 150 million people, the NSDC strives to:
  • Develop ultra low-cost, high-quality, innovative business models.
  • Attract significant private investment.
  • Ensure that its funds are largely “re-circulating” i.e. loan or equity rather than grant.
  • Create leverage for itself.
  • Build a strong corpus.
Keeping this in mind, the NSDC plays three key roles:
  • Funding and incentivising : In the near term this is a key role. This involves providing financing either as loans or equity, providing grants and supporting financial incentives to select private sector initiatives to improve financial viability through tax breaks, etc. The exact nature of funding ( equity, loan and grant ) will depend on the viability or attractiveness of the segment and, to some extent, the type of player (for-profit private, non-profit industry association or non-profit NGO). Over time, the NSDC aspires to create strong viable business models and reduce its grant-making role.
  • Enabling support services : A skills development institute requires a number of inputs or support services such as curriculum, faculty training standards, quality assurance, technology platforms, student placement mechanisms and so on. NSDC plays a significant enabling role in these support services, most importantly in setting up standards and accreditation systems in partnership with industry associations.
  • Shaping/creating : In the near-term, the NSDC will proactively seed and provide momentum for large-scale participation by private players in skill development. NSDC will identify critical skill groups, develop models for skill development and attract potential private players and provide support to these efforts.