The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval for restructuring of National Skill Development Fund (NSDF) and National Skill Development Corporation (NSDC) to strengthen governance, implementation and monitoring framework.
The restructuring will also ensure better corporate governance, transparency and accountability in operations of NSDC besides strengthening the oversight role of NSDF. The approval would lead to the restructuring of the composition of Board of NSDF and the NSDC to strengthen governance, implementation and monitoring framework.
NSDC and NSDF were set up by the Ministry of Finance and registered in July 2008 and January 2009 respectively for implementing coordinated action for skill development. NSDF trust was incorporated to act as a receptacle for financial contributions from Governmental sources, bilateral/multilateral and other agencies. Its main objective is to enhance, stimulate and develop the skills of Indian youth force by various sector-specific programmes.
NSDF entered into an Investment Management Agreement (IMA) with NSDC for utilization of its corpus to meet the desired objectives of National Skill Development Mission and encourage skill development in the country. Provision of supervisory role of NSDF over NSDC’s functions is also included in the IMA between NSDC and NSDF.
National Skill Development Corporation India (NSDC), established in 2009, is a not- for- profit company set up by the Ministry of Finance.
The present equity base of NSDC is Rs.10 crore, of which the Government of India through Ministry of Skill Development & Entrepreneurship (MSDE) holds 49%, while the private sector has the balance 51%.
NSDC aims to promote skill development by catalyzing the creation of large, quality and for-profit vocational institutions.
It also 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.
It also develops appropriate models to enhance, support and coordinate private sector initiatives.
About National Skill Development Fund:
The National Skill Development Fund was set up in 2009 by the Government of India for raising funds both from Government and Non-Government sectors for skill development in the country.
A public Trust set up by the Government of India is the custodian of the Fund. The Trust accepts the donation, contribution in cash or kind from the Contributors for the furtherance of objectives of the Fund.
The Fund meets its objectives through National Skill Development Corporation (NSDC).