NSDC Plans to Mobilise Rs 200 Crore by Tapping Corporates CSR Funds

National Skill Development Corporation (NSDC) is planning to mobilise around Rs 200 crore by tapping CSR funds of corporate houses. The money will be utilised to fund some of the skill development programmes and to set up training centres across the country. Jayant Krishna, CEO, National skill Development Corporation (NSDC), said to boost skill development programmes in the country, besides government support, he will also be tapping corporate houses. Krishna was principal consultant of Tata Consultancy Services (TCS) earlier.

Formed in 2010, NSDC acts as a catalyst in skill development by providing funding to enterprises,companies and organisations that provide such training. NSDC is a public private partnership (PPP), mandated to involve the private sector in skilling 150 million Indians by 2022. Besides, using these corporate houses for training programmes and to set up training centres, NSDC is also planning to tap CSR funds of India Inc.

The first CSR project under the modified Companies Act, 2013, was signed between NSDF, NSDC and Power Grid Corporation of India in January 2015. Krishna said that the public sectors, including ONGC, NTPC, Coal India and others have contributed funds to the tune of around Rs 50-60 crore last fiscal. “We want the private sector to support our programmes and we are planning to tap their CSR funds,” he said.

He noted, under the new Companies Act, companies need to spend atleast 2% on CSR and it can be used for skill development also. Besides its own programmes, NSDC is also responsible for implementing some of the government-run skill development programmes. For instance, Pradhan Mantri Kaushal Vikas Yojana. For Pradhan Mantri Kaushal Vikas Yojana, around Rs 1,000 crore has been allocated to set up model centres in each district of the country. Till now, around 19 lakh people have enrolled and the target is to reach one crore in the next three years.

Krisha said the government’s Skill Development Programme is one of the largest in the world and and the target is to train one crore people through this programme alone. However, there are challenges. According to Krishna, skills are not considered as aspirational and it is imperative that we build respect for skills and that is exactly the idea behind our new campaign.

The government has roped in Sachin Tendulkar to endorse the ‘I Support Skill India’ campaign, in an attempt to reach out to the youth and build awareness on the importance of skill development.

NSDC has also roped in actor and social activist Shabana Azmi and a few more celebrities to speak about the necessity of skill development. The CSR funds will also be used to set up model training centres. NSDC wants to set up 500 centres and each would cost around Rs 70 lakh, which will be given as soft loan by NSDC.

These will be modern/ aspirational centres, said Krishna. Recently, NSDC and Dalmia Bharat Foundation signed an agreement to impart vocational and skill training to 60,000 unemployed youth over the next 10 years across the country. Overall, the project cost is around Rs 4.65 crore, of which Dalmia has committed Rs 1.40 crore and the rest is the NSDC soft loan. Last year, NSDC trained nearly 35 lakh people and this year it expects to touch 40 lakh. Under the programme, 70% of the candidates will be assured employment in sectors and job roles in which they get trained.

For all training that happens through NSDC’s partners, it is mandatory that atleast 70% of the people, who get certified, have to be employed or self-employed. Then only NSDC gives soft loans to people who make this commitment.

Krishna said that there is an agreement with training partners that after successful completion of a course, at least 70% of the students have to be employed, but he confessed that the actual number is a little less. The Corporation is taking steps to increase the percentage. A National Skill Certification Board will be set up for quality assessment of skill courses. (Business Standard)