National Policy on Skill Development (2015)

National Policy on Skill Development (2015) TABLE OF CONTENTS 1. Introduction 2. Skills and entrepreneurship landscape 3. Scope of the policy 4. Policy framework for Skill Development 5. Policy Framework for catalyzing entrepreneurship 6. Enabling measures to address the objectives 7. Monitoring and Evaluation Page 1 of 38

Chapter 1: Introduction 1.1 Background 1.1.1 The National Policy on Skill Development was first formulated in 2009, and it has provided the framework for skill development activities in the country. 1.1.2 Over the past five years, changes in the macro environment, and the experience gained through implementation of various skill development programmes in the country have necessitated changes in the policy. The creation of the Ministry of Skill Development & Entrepreneurship as the nodal Ministry for all skill development activities across the country has led to changes in the Allocation of Business Rules that have further necessitated the process. The new policy reflects the tenets of the Skill India programme of the Government, which focuses on outcomes based approach in terms of providing meaningful employment in the form of both wage and self employment. 1.1.3 Accordingly, the National Skill Development Policy, 2015 is being formulated, and it will supercede the Policy of 2009. 2.1 Vision of the National Policy on Skill Development 2.1.1 The overall vision of the policy is an integrated outcomes- based skills development eco- system, which would promote economic, and employment growth and social development through a focus on education, skill training and employment services. The Skill India Programme is a commitment to the overall human resource development of the country. 2.1.2 The basic tenet of the National Policy on Skill Development would be the development of the individual. The emphasis of the policy is to deliver skill development such that it empowers the youth to attain decent standard of living. However, in order to link these two elements measures that adhere to good quality standards of the skill development programmes should be adopted. There is a need to facilitate a general increase in the skills profile of the population, through accredited high quality education and training linked to the National Skills Qualifications Framework (NSQF), a competency based framework. 2.1.3 The NPSD envisages creating a vibrant educational and skill ecosystem which would make our country the skill capital of the world. It seeks to make skill development an integral part of all development schemes and aims to address the employability issue by initiating a multi- skills development programme in a mission mode with focus on job creation and entrepreneurship, in both rural and urban areas covering all socio- economic groups of the population. The policy identifies the strategic interventions required to meet the objectives of skilling the youth of the nation as it has become imperative to India s sustained growth and is no longer a matter of choice. The policy Page 2 of 38

recognizes that the need of the hour is to create a skill eco- system with increased investment. 2.1.4 The skill policy also envisages to harness inclusivity and focus on equity both social and gender equity. There is need for affirmative action in accordance with Constitutional provisions to ensure that persons belonging to the Scheduled Castes, Scheduled Tribes, Minorities, Women, and other disadvantaged groups are provided the opportunity to develop their skills. 2.1.5 The skill policy would also focus on trainings to promote self- employment and focus would also be laid on special training on entrepreneurship. The NPSD would also focus on increasing the relevance with future employment market including promotion of self- employment; soft skills and entrepreneurship skills will be made integral part of skill development. Page 3 of 38

Chapter 2: Skills and Entrepreneurial landscape in India 2.1 Our country is one of the few countries in the world where the working age population will be far in excess of those who will no longer be able to work. In 2020, the average Indian will only be 29 years old, compared with 37 in China and the US, 45 in West Europe and 48 in Japan. Therefore, when developed countries will be struggling with shrinking domestic demands and manpower shortages, India, with its huge demographic dividend, will be well positioned to become the sourcing hub of the world. The National Policy on Skill Development, 2009 recognising this opportunity, had set a target of skilling 500 million people by 2022. The new policy will also aim at achieving the target by focusing more on outcomes. Large- scale skill development and entrepreneurship programme linked to robust quality standards is thus an imminent imperative. 2.2 It is evident that a major challenge of skill development initiatives is to address the needs of huge population by providing skills in order to make them employable and help them secure meaningful livelihood opportunities. This necessitates planned development of skills which is underpinned by a policy, that is both comprehensive as well as national in character. A national policy response is, therefore, needed to guide the skill development strategies and coordinated action by all stakeholders to avoid a piecemeal approach. It is also important that the policies of skill development be linked to policies in the economic, employment and social development arenas. 2.3 The development and articulation of a national policy on skill development must also be cognizant of the socio- economic realities at the implementation level. This will enable the policy document to reflect and articulate measures to address issues in a structured manner. The task of skill development and entrepreneurship has many challenges which include:- a) Mobilising youth to undergo skill development programmes, in the face of the traditional and cultural bias against non- white collar occupations b) Increasing capacity & capability of existing system to ensure equitable access to all- Determination of capacity that exist in the country c) Lack of a robust mechanism for monitoring and measuring outcomes d) Disharmony in the various skill development efforts - Creating effective convergence between school education, various skill development efforts of government and between government and Private Sector initiative. e) In the federal set up, lack of a robust delivery mechanism at the State level f) Capacity building of institutions for planning, quality assurance and involvement of stake holders Page 4 of 38

g) Increasing participation of stakeholders, mobilizing adequate investment for financing skill development, attaining sustainability by strengthening all resources. h) Limited mobility between skill and higher education programs vocational education i) Very low coverage and poorly designed apprenticeship programs j) Narrow and often obsolete skill curricula k) Lack of trainers, inability to attract practioners from industry as faculty l) Paucity of support systems, institutional structures and funding for entrepreneurs m) Pre- dominant non- farm, unorganized sector employment with low productivity but no premium for skilling 2.4 The NPSD also recognizes four categories of skill development- a) For fresh entrants to the job market, including fresh entrants to the job market, including students of vocational courses in secondary and higher secondary educational/training institutions, b) Re- skilling or skill up- gradation of persons already engaged in an occupation c) Formal recognition and certification of skills of persons who have acquired skills through informal, non- formal or experiential training in any vocational trade or craft, and; d) Formal education courses leading to Qualifications of NSQF Level 5 and above (including diplomas, degrees etc.) The new policy would record any form of extension work as an activity distinct from skill development. Page 5 of 38

Chapter 3: Scope of the National Policy on Skill Development 3.1 The issues which the National Policy on Skill Development & Entrepreneurship seeks to address include the following: 3.1.1 Changing the negative perception associated with vocational education and focusing on mobilization of candidates on the same: A major challenge in the skills arena is the mobilization of candidates, partly because of the socio- cultural attitude towards blue- collared jobs. It is also evident that lack of awareness is a major reason for the relatively poor response to skill development opportunities. The skills policy envisages awareness generation and information dissemination on the part of all the implementing agencies be it the Central Government, state government or the private agencies. A major initiative would be made in creating and raising awareness among the target groups about the benefit of skill development, employment and learning opportunities and also about support schemes that enable them to participate in training. 3.1.2 Co- ordination and integration of all skilling efforts in the country: A large number stakeholders- ranging from central and state Governments, ministries, training providers, assessment agencies, industry bodies, and workers- are involved in the skill development space. Co- ordination amongst these various stakeholders often results in shortfall in implementation of skilling initiatives. Furthermore, the lacunae in establishing a clear skills supply- demand paradigm also limit positive impact in the resultant employment and productivity of the markets. Hence the NPSD envisages achieving effective coordination mechanisms at various levels 3.1.3 Outcomes approach focusing on both employment and employability : When viewed from the perspective of a trainee, the ultimate goal of any skilling exercise is to ensure socio- economic mobility. Better employment opportunities for the trainees are an effective way to gauge the effectiveness of any skilling initiatives. This can be measured in terms of a trainee s ability to move from the informal sector to the formal sector and/or a raise in remuneration post, etc. Employability- as demonstrated through skills of an individual- is intrinsically linked to achieving gainful employment. From the perspective of the employer, the prospective trainee/employee must deliver tasks assigned to him/her efficiently. The ability of an employee to perform tasks effectively rest on his mastery over the job role, which may relate to both core and soft skills. Thus, key objective of the policy is to enhancing employability such that it is reflective on employment of trainees. 3.1.4 Improving the capacity and quality of Training Infrastructure, along with geographical and distribution of capacity sector wise and geography wise: Though the capacity that had been created by the private sector in the country is unknown, it is evident that the infrastructure is skewed in terms of both sector and geography. A survey would be Page 6 of 38

conducted to know the capacity that already exists and how it is being utilized, so that the shortfall in capacity can be gauged and a plan for meeting this shortfall can be formulated and implemented. The objective of enforcing quality and relevance in skill development will also be realized through improving infrastructure, improving quality of trainer and developing National Skill Qualification Framework. 3.1.5 Quality assurance and linkages with the NSQF: Ensuring the quality of training is essential for all stakeholders within the skill ecosystem and the resultant certification is a validation and recognition of the same. Irrespective of source of learning, whether through formal or informal or on- the- job learning, the quality assurance against certain benchmarks will facilitate recognition of learning. The NSQF is an important institutional mechanism that ensures consistency of nationally recognised qualifications both for formal and non- formal skills based education and training. It accommodates experiential life- long learning through mechanisms such as recognition of prior learning, improves the alignment of formal and non- formal training programs with industry requirements; and increases options for students by broadening program and progression for learners through horizontal and vertical pathways. 3.1.6 Working closely with the private sector and the industry: Industry is an essential partner in skill development, and there is need to encourage greater participation from the private sector. The skill initiative in India has largely been a Government driven exercise. However, as a stakeholder, that will eventually absorb all the skilled manpower, the industry has an equal responsibility to participate in the skilling campaign. Successful models across the globe have indicated that inputs from the private sector should be at multiple levels of the skill value- chain, ranging from inputs to market information, to designing of occupational standards, to investment through apprenticeship and re- skilling to ensure trained manpower. Thus, a greater emphasis will be placed on the industry participation in the new policy. 3.1.7 Third party assessments and Certification: For meaningful skill development, there is a need for an independent and good quality third party certification, which would be adopted by institutes imparting skill development programmes as a means to bring accountability and regulation over training and assessments. This would promote professional and personal development of individuals. Apart from the formal sector, a large number of workers in the informal/unorganized sector have acquired skills through experience or other non- formal learning channels that are not able to derive proper market value for their services. The NSQF would facilitate certification to such persons to help them move into the formal sector jobs as long as they are able to perform to the outcome standards. This recognition of prior learning would empower millions of workers through formal recognition of their skills. 3.1.8 Address the special needs of difficult areas NE, Hill States, LWE affected areas: The border, hilly and difficult areas, including the North- Eastern states, J&K, and the hilly Page 7 of 38

forested areas of central and eastern India, face additional challenges arising out of inadequate infrastructure, poor investment and industrial opportunities. Special attention needs to be given to the youth residing in these regions to address their needs for employment and employability. In order to provide more equitable access across the country, special efforts will be mounted to establish training facilities in deficient regions. 3.1.9 Technology interventions in terms of LMIS and monitoring of outcomes: There is a strong necessity to design platforms that facilitate information exchange and mitigate information asymmetries. The labour market information system will be dynamic platform that will enable a range of stakeholders to access reliable information. In line with the national policy, it will retain trainees as the focal point of initiatives, however, it will also cover a range of stakeholders such a training providers, industry/employers, Government agency/policy makers, Assessment agencies, Certifying agencies, Funding agencies, International Agencies, Sector Skill Councils, Labour Market tracking agencies, Govt. &Private agencies. The information generated under such a system would be both quantitative and qualitative in nature. Furthermore, the aim of the system will be to accumulate data through varied sources that will be be analyzed to suggest corrective measures and forecast trends that will be linked to broad national development strategies, so that new and existing employment prospects and their skills requirements can be identified. 3.1.10 International equivalence and mobility of skilled manpower: The objective of the current exercise of skill development is not only to meet the domestic demands but also international markets. In a competitive global economy, trained manpower is an asset for employers, where an individual s skills must be a reflection quality and competitiveness. The policy seeks to create avenues for greater mobility through quality assurance measures that will be at par with international standards. To this end, recognition and portability of skills abroad is an important outcome of the policy. 3.1.11 Create opportunities for all to acquire skills throughout life, and especially for youth, women and disadvantaged groups: High inclusivity is one of the central visions of the NPSD. The NPSD envisages skill development initiatives that will harness inclusivity and reduce divisions such as male/female, rural/urban, organized/unorganized employment and traditional/contemporary workplace. One of its key objectives is to ensure that the skilling needs of the disadvantaged and the marginalized groups like SCs, STs, OBCs, minorities, women and differently abled persons, as well as those living in difficult geographical pockets, are appropriately taken care of. 3.1.12 Develop a high- quality skilled workforce/entrepreneur relevant to current and emerging employment market needs Page 8 of 38

Chapter 4: Policy Framework for Skill Development 4.1 Skill Development Legislation 4.1.1 To actualize the vision of Skill India turn into reality, there is an utmost need to have a legislation that caters these concerns and initiatives spoken about. This directs us towards a Skill Development Act that will mandate every stakeholder to undertake skill development activity judiciously and will ensure maximum outcome. 4.2 Outcome oriented 4.2.1 The National Policy on Skill Development would be outcome oriented. Given the magnitude of the skill development task, it is only prudent that an outcomes- based approach be adopted in achieving targets. 4.2.2 The NSQF would ensure that each level is defined in terms of competencies that would need to be achieved. It has been notified with the objective to integrate general and vocational streams of education, which will facilitate and make transparent, the various pathways of mobility, both within and between general and vocational streams. This will also change the way the country perceives vocational education. 4.2.3 There is also need to empower the trainees so that they are in a position to demand and access quality from training providers. The NPSD will mandate the use of Skills Voucher as one of the means to achieve this same. The skill voucher will be a tool that will enable the students to choose the training provider as per their preferences and it is expected that this will act as an incentive for institutes to improve performance. Voucher system is expected to drive efficiency and effectiveness in the vocational training market overall with active involvement of the institutes. 4.2.4 Moreover, every training programme and provider would be judged on employment being procured by the persons trained, and the salaries. The policy envisages linking the quality of employment, such as through payments, post- training to gauge and monitor outcomes. 4.3 Integrated approach to skill development 4.3.1 A continuous effort in terms of adopting an integrated approach is the need of the hour. To avoid confusion and bring about uniformity at the implementation level, the Government had initiated the process of rationalizing all the schemes of the GOI to bring about standardization to the entire process. A Committee to rationalize all these schemes was set up, and the Committee s report would ensure that the parameters Page 9 of 38

identified during the rationalization exercise would have greater degree of convergence of norms across the various central schemes for skill development. The policy while recognizing the special needs of all the North Eastern States, the hill States, and other geographies that pose challenging situations for skill development, will ensure that certain incentives are provided for citizens living in these areas are not deprived of the benefits of skill development. 4.4 Making Skill Development an Integral Part of all Skill Development Programmes 4.4.1 The policy will ensure that skill development become an integral part of all GOI schemes. Instead of having only a few schemes of the Govt. of India, which are meant for skill development, this would be made an integral part of all schemes. For instance, a scheme to build roads and highway should earmark a certain minimum percentage of the funds available to skill persons to use the road (as drivers), maintain the road (as maintenance workers) etc. This will be applied to all schemes 4.5 National Skills Qualification Framework (NSQF) 4.5.1 National Skills Qualifications Framework (NSQF), a competency- based framework will establish links between general education and vocational & technical education, so that there is free movement from one to the other. The policy envisages introducing a stream of career education from Class XI onwards, so that in addition to choosing among science, arts and commerce streams, students will also be able to opt for career education, which will prepare them for the workplace in various sectors. The NSQF will also provide avenues for recognition of prior learning of individuals who have acquired skills through informal sources. 4.6 Statutory Body for implementing the NSQF 4.6.1 For effectively maintaining and implementing a National Qualification Framework, many countries have statutory bodies in place. There is an urgent need for a statutory body for this and as the secretariat of the NSQC, NSDA will be made an statutory body so that the functions of the NSQC could be effectively carried out. 4.7 Trickle down approach 4.7.1 The NPSD recognizes the vital role that the State Government plays in the skills eco system as the State is the ultimate authority in implementing them. The State Skill Development Missions (SSDMs) would be advised to operate as nodal bodies to anchor the skill development agenda in the State. Each State should ensure a coherent and well- integrated skill development structure. There should be regular interaction of the States with the Central authorities to synchronise the efforts of skill development in the Page 10 of 38

federal set up. 4.7.2 In addition, a district level / divisional level plan for skill development would also be prepared based on the following principles: PM s Skill Development Fellows would be posted at the district level Skill development targets for the State will be allocated to different districts pro- rata to their population Cluster approach would be adopted for the areas where there is a need to focus on traditional skills Districts, to which region- specific schemes apply, such as districts in border areas, backward regions, districts with significant minority populations, districts with urban concentrations etc., will first be provided funds under these region specific schemes. Any shortfall to enable each of these districts to meet their respective skill development targets will be topped up from the schemes applicable to all areas The remaining districts would then be mapped under each scheme and the objective will be that as far as possible, each district is implementing no more than 4 or 5 skill development schemes. This will enable the district administration and the to focus their energy on a limited number of schemes. Moreover, all SSDMs would submit the state skill action plan to the Ministry of Skill Development & Entrepreneurship. 4.8 Ensuring equal opportunity to all 4.8.1 The Government would also advocate for equal access to skill development for all social groups particularly women and disadvantaged section of society, to help them in securing decent employment and moving out of poverty. 4.9 Industry linkage 4.9.1 The industry is an essential partner and there is need to encourage greater participation from the private sector in the skill development sphere. Shortage of labour poses a three- fold challenge for the industry, in terms of quality, delivery and costs. Firms have to cut back on delivery targets, scale down expansion plans and reduce capacity due to shortage of adequately trained labour. Moreover, project costs rise as low- quality output has to be re- worked or scrapped. Therefore, the NPSD will engage more closely with the private sector and encourage greater participation from them. 4.10 Focus on Trainers 4.10.1 The expectation of knowledge economy and changing views about the nature of knowledge must be integrated in education and training, particularly in TVET, to be Page 11 of 38

relevant for learners of the twenty- first century. Quality standards and certification system for trainers should be established along with provision of opportunities for them to meet such standards A national system of training and certification for instructors and trainers should be introduced to deliver a more strategic approach to the development of the training workforce. This should be supplemented by a national pool of certified national Master Trainers to implement the new instructor training programs, Current guidelines for instructors and trainers should be reviewed to ensure that all instructors will have technical qualifications or industrial experience Ensure professional mobility for trainers as well within the system. Priority would be given to the preparation of adequate number of well- qualified teachers, instructors/trainers, training administrators and guidance staff The government would work closely with the industry to ensure that mechanisms are put in place to support a return to industry program that allows current instructors and trainers to update their technical skills in the workplace. As many training institutions face severe shortages of instructors, the government will also develop a strategy to increase the recruitment of instructors so that vacant posts are filled. A system of recognition and rewards will be established to encourage excellence in the profession, and a coordinated program of professional international exchange will be developed to give exposure trainers and instructors to quality skills development systems in other countries. 4.11 Central Repository of Information 4.11.1 A robust information system is required to fully appreciate the issues and to find solutions. The policy will ensure that a robust national database on skill development is created where relevant information is available freely available to citizens. The LMIS would be used as a monitoring system and shall be used by all the Ministries and other stakeholders. This would not only ensure that the entire skill development efforts are available at one place, it would also help reduce considerably the situation of one individual being benefitted under different schemes. Access would be provided to the database to external stakeholders, such as employers, so that they are able to find suitable candidates for employment from this database. 4.12 Skilling to international standards export skilled manpower 4.12.1 In view of the very large number of youth entering the job market every year, it is essential that we also equip the youth of our country to become members of the global workforce. Hence efforts would be made to establish equivalence between the Page 12 of 38

NSQF and the European Qualification Framework, so that persons who have been certified against the NSQF will be able to seek skilled job opportunities in the countries that adopt the EQF. Page 13 of 38

Chapter 5: Policy Framework for catalyzing entrepreneurship Ministry of SD and E to prepare this portion Page 14 of 38

Chapter 6: Enabling measures to address the objectives 6.1 Measure 1: Outreach and Advocacy 6.1.1 While even a senior professional/ executive in most of the developed countries would do most of their basic repair and maintenance work such as electrical/ plumbing/ carpentry etc. themselves and not rely on external help, in India this is not the case. What are vocational skills for Indians are actually among basic life- skills for citizens of developed countries. Imparting basic hand skills to all our children during their school education itself in all private and government schools would be an essential starting point. That s where the young will start developing love for them and this will slowly remove the taboo associated with such skills. 6.1.2 Presently, vocational stream is not considered as a career of choice in India. That is why hardly 7% of students opt for it and hardly 2.5 % of the workforce has received formal technical training. The Policy should aim at making vocational stream a career of choice. This will require the following:- 6.1.3 A number of steps would be adopted for advocacy purpose- a) Establishing and demonstrating career pathways for upward mobility leading to higher level qualifications. This would involve: o Vocational qualifications should incorporate (in addition to hand- on- skills) adequate professional knowledge of the trade field of study and, also academic learning in terms of knowledge of IT, communication ability, quantitative abilities etc. o Experience based learning should be given due credit while prescribing entry level requirements for higher level qualifications. o Designing bridge courses and making available guidance and facilities for taking up such courses. This should be an integral part of the design of Recognition of Prior Learning. o To promote up- skilling of existing workforce, training courses for higher qualifications should be designed in a manner so that it enables continuing vocational education and training while being in job, through evening / weekend classes and project work. Public financial support to the needy should also be made available. b) Providing opportunities for leveraging experience based learning and for continuing vocational training to enable one to achieve higher level qualifications during his career progression. c) Enhancing employability (both wage employment and self employment). d) Adequate financial support to needy, in the manner similar to being provided for pursuing general academic / higher technical courses. Page 15 of 38

e) The PM s Skill Development Fellows will be introduced who will work with the district administration to spread awareness about skill development, coordinate the skill development effort, and to identify the local needs of the region. f) Strategies for 'behavioural change' including counselling of students, sensitization of parents, documentation and dissemination of success stories and institutionalizing work education work education in the curriculum at the upper primary stage would be used to alter negative perception about vocational education. g) In order to make skill development aspirational, the Rashtriya Kaushal Puraskar Evam Udyamshilta Puraskar, would be instituted which would provide national recognition to outstanding contributions of institutions in the field of Skill Development and entreprenuership, thereby creating a positive image around skill development, and making it aspirational. h) Youth Centers /Clubs at village and block level will be promoted to provide skill development opportunity as well as to act as one- stop kiosks with information on the local labour market/employment, vocational learning opportunities and support schemes. i) Industry would be mandated/encouraged to pay the differential wages to skilled and semi- skilled workers. The negative perception in regard to vocational education is perhaps due to the perception that industry is not yet willing to pay premium in the form of higher wages for skilled labour. The large unorganised sector dominated by contract labour is also a factor. The differential of minimum wages between unskilled and semi- skilled manpower, as well as between semi- skilled and skilled manpower has to be sufficient to act as a necessary incentive for people to undergo skill development. j) Innovative approaches will be adopted to mobilise candidates that will project skill development as an attractive stream k) Technology would be leveraged in the form of social media and an app would also be developed that would enable potential candidates to access information related to skill development courses. l) Tie up media houses like FM Radio and other TV programmes who will act as evangelists of the cause and further it through their own network technology 6.2 Measure 2: Co- ordination and integration of all skilling efforts in the country 6.2.1 A large number stakeholders- ranging from central and state Governments, Ministries, training providers, assessment agencies, industry bodies, and workers- are involved in the skill development space. Lack of co- ordination amongst these various stakeholders often results in shortfall in implementation of skilling initiatives. Furthermore, the lacunae in establishing a clear skills supply- demand paradigm also hinder the employment of trainees and productivity of the markets. Hence the NPSD envisages achieving effective coordination mechanisms at various levels such as: Page 16 of 38

National level: Promoting inter- ministerial coordination, policy coherence and information dissemination through the Ministry of Skill Development and Entrepreneurship. State level: Strengthening institutional structures for effective delivery of skills policy. This would involve empowering the State Skill Development Missions so that these become effective bodies for coordinating the skill development efforts in the State. If necessary, states may be advised to set up Departments of Skill Development and Entrepreneurship. Sector level: Determining the market requirements for planning and delivery of training Local level: Aligning training to the needs to the market for effective delivering of trainings. Individual level: Empowering trainees with skills that result in economic and social mobility. 6.2.2 To achieve this, the key agencies involved in skill development will be entrusted with specific responsibilities: o The Ministry for Skill Development & Entrepreneurship Policy and monitoring of overall skills framework Coordination of work between various ministries involved in skills development o NSDC under the umbrella of the Ministry Technically evaluating proposals put forward for funding and fund disbursements for capacity building (private sector and NGOs) Funding Training Providers Funding technology and innovation Developing and Proposing fund disbursement guidelines and schemes as per regulatory guidelines o Independent Regulator under umbrella of Ministry NSDT can perform this role: Technical Quality and Audit check on NSDC, SSCs and Assessing Bodies Providing direction for funding and approving case put forward for it by NSDC/SSC Grievance addressing Integrating, verifying integrity and publishing data for demand and supply of skilled manpower. o Qualifications Authority under the umbrella of the Ministry NSDA can take this role Page 17 of 38

Anchor the NSQF and operationalize it Licensing SSCs and reviewing case for creation of an SSC or closing it down Approve qualifications put forth by SSC Drawing equivalences, approving credits and integration with the general and higher education streams Marketing the value of the certification nationally and internationally Approve funding for new or review of qualifications after evaluating the case for it Ensuring the standards are translating into the correct curriculum that is approved for delivery o Sector Skills Councils (under the umbrella of the Regulator/NSDT) Responsible for Industry Engagement in the Sector and grass root quality assurance system. Developing NOS and Qualification Packs Implementing the LMIS for their sector uncovering demand and supply Registry and approval of assessors and training providers for their qualifications Sectoral studies Industry/academia workshops Producing learner counseling materials and communicate industry offerings (jobs, career paths, etc.) Training of trainers and assessors 6.3 Measure 3: Outcomes approach focusing on both employment and employability 6.3.1 Enhancing Employability and Employment will be the main outcome of the Policy. This will be achieved through the following interventions and appoaches: Due to accelerated technological changes and economic growth, time horizon of jobs is going to be short. It would lead to significant change of jobs in one s career. Therefore, vocational qualifications will be adequately broad based to ensure intra- sectoral, inter- sectoral mobility and international mobility. Narrow QPs for a particular industry and for immediate job roles will be eschewed. The approach will be to ensure that an individual s mobility across jobs is not hindered by narrow QPs and industrial classification. Training courses shall incorporate adequate coverage of core skills in addition to professional knowledge and professional skills. Abilities for problem solving, team work, adaptation, entrepreneurship should be integral part of QPs. Soft Skills shall also be integral part of each vocational training course. To ensure the above mentioned, curricula design would need to be an institutionalized and continuous process with participation of multiple stakeholders. SSCs would give their inputs for required competencies for job roles in a particular industry which should be fed in to curricula design process while Page 18 of 38

ensuring that qualification are adequately durable by being broad based and also incorporate necessary core skills and soft skills. The following stakeholders should participate in curricula design. a. Industry b. Academia c. Workers representatives d. Training providers / Experts Quality assurance of the training delivered needs to be another focus area to ensure that pass outs have high employability, and acceptability to industry. The following interventions are required in this regard:- a. Accreditation of training providers with periodic review within a robust and transparent regulatory framework. b. Competent and accredited trainers in adequate numbers. To ensure that talented persons take up the job of vocational trainers, a national framework consisting of: i. Qualifications at various levels ii. Adequate TOT infrastructure iii. Obligation for training providers to engage only accredited trainers iv. Financial support to needy for pursuing trainers qualifications as their job prospects are uncertain v. Calibrating the demand and supply of accredited trainers to ensure that they are able to earn decent wages. c. A national framework for competent and accredited assessors similar to (b) above. There shall be pathways for enabling experienced trainers to become accredited assessors. d. Accredited assessors and trainers shall be categorized broadly enough to ensure their employability. e. A nationally recognized credible certification of qualifications which would facilitate inter- sectoral and international mobility. SSCs should give their inputs and participate in assessment of professional skills but certificate should be of national brand for broad based occupations / trade and should follow, in addition, the assessment of professional knowledge of the whole field as well as that of core skills. Establishing guidelines to ensure that training courses are linked to performance based criteria. For example, under the NSQF all training providers have been mandated to demonstrate outcomes achievement through monitoring of placements, job- retention, and salaries post- training. Mandatory delisting of non- performing training centres/assessment bodies that are Page 19 of 38

unable to meet performance criteria s laid down by relevant regulatory body. Periodic review of the performance of the Sector Skills Councils, especially through the NOSs and QPs designed, to gauge its relevance to the job market. Access to information linked to job requirements, job placement services and job search techniques to be made available to candidates. Encouraging on- the- job learning, re- skilling and lifelong learning within enterprises. Incentives should be provided to workers promote continuing education and training. To raise the employability employees content could focus more on actual workplace contexts, group work and other generic skills in addition to entrepreneurship and other aspects of employability. Government linked schemes should integrate skills upgradation including the recognition of prior learning (RPL) and re- skilling of staff to on a periodic basis. While a placement of at least 70% of persons trained shall be mandatory for all training providers to achieve, additional incentives to Training Providers shall be provided for: a. any placement exceeding 70% placement in a project. b. retention in job @ Rs.3000 per person, i.e. in case placed candidate is able to remain employed in a job for 305 days in first 360 days of placement. c. career progression @ Rs. 5000/- per person, in case a skilled candidate is given a job with a salary of more than Rs.15000 per month within 12 months of placement. d. foreign placement @ Rs. 10000/- per person, provided if salary at placement is more than Rs. 25000 per month in such foreign placement. 6.4 Measure 4: Capacity creation and ensuring quality thereof 6.4.1 Existing infrastructure in the country is skewed in terms of both sector and geography. A survey would be conducted to know the capacity that already exists and how it is being utilized, so that the shortfall in capacity can be gauged and a plan for meeting this shortfall can be formulated and implemented. 6.4.2 The objective of enforcing quality and relevance in skill development will also be realized through improving infrastructure, improving quality of trainer and developing National Skill Qualification Framework. a) In view of the limited training infrastructure, a range of government infrastructure facilities including schools, Panchayat Bhawans, community centres and local government buildings, will be utilized as training venues where the private partner would set up the infrastructure and impart training. Expanding the capacity of existing institutions could also be achieved with support of PSU's under CSR Schemes for skill development. Page 20 of 38

b) Institutes for entrepreneurship training such as Rural Self- Employment Training Institutes (RSETI) and Indian Institute of Entrepreneurship (IIE) would be promoted. c) Skill Development Centers (SDCs) will be set up to serve the needs of local communities in the unserved and under- served areas. A mechanism to employ the local youth also would be devised and marketing linkages would be established within the State itself. d) Rural Haats may be created in each village and there is a need to create provision of basic infrastructural facilities along with adequate and timely credit. The District Administration would be made responsible for the Rural haats for products of artisans, SHGs, village level and Cottage industry units and micro enterprises and also traditional products (both consumable and non- consumable). To give fillip to industrial activity, the pre requisite of basic transport and power infrastructure is a must and non- farm activities need to be identified on a cluster basis by emphasizing on local resource base industries. e) Skill development for self- employment will be an important component in these skill development efforts in rural areas. The Entrepreneurship Development Institutes of the Government in the countries would be assigned additional responsibilities of not only conducting trainings on entrepreneurship development but would also be responsible for facilitating adequate and timely credits to the entrepreneurs. f) A targeted approach of preferential empanelment, approval and funding of training providers will be immediately put into place for the sectors and geographies where training capacity is clearly inadequate g) In the areas facing additional challenges, such as those affected by left- wing extremism, the North- Eastern States and the hill states, special drives will be launched for the empanelment and funding of training providers. Similarly, special efforts will be made for training providers who train persons with disabilities, as special equipment and facility would be required for such trainings. h) Sectors that provide significant opportunities for women will be taken up on a preferential basis such as Hospitality, Food Processing & Preservation, Allied Healthcare and Beauty & Wellness. Women will also be encouraged to equally participate in all the other trades like manufacturing and other service sector. Specific provisions for women will be created to incentivize a large population of women to participate in skill development. i) Adequate post placement support will also be facilitated so that candidates who are placed after successful completion of skill development programmes can sustain through the initial hurdles after being placed. It has been observed that a Page 21 of 38

large number of youth who are placed in areas outside of their own districts move back to their native villages due to lack of financial support. Post placement support will prevent such an out flux of placed candidates. j) To ensure quality of training, as well as to empower the trainees with choice of the training providers and programmes they want to take up, the new policy will introduce Skills Vouchers. The vouchers will be distributed to the youth who have enlisted for training, and they will be free to pay with these vouchers for undergoing training at any empanelled training provider and in any programme of their choice. This will enable the learners to choose the training provider as per their needs and preferences and it is expected that this will act as an incentive for institutes to improve performance. k) Apprenticeship Scheme: It has huge potential for practical oriented vocational training in a cost effective manner by utilizing the infrastructure available in establishments. Many countries have utilized this opportunity very successfully. The Apprenticeship Act had been amended make it more effective and outcome oriented by enhancing the stipend by indexing it to minimum wages of semi- skilled workers. The training modules are also being re- structured by international expertise. The policy should fully recognize these measures to promote apprenticeship as an important vehicle of vocational training and further support to it should be included as key policy intervention. l) The policy shall also ensure easily accessible financial support and other necessary infrastructure to enable trained persons in taking up entrepreneurial ventures should be included as a key intervention in the Policy. 6.5 Measure 5: Quality Assurance and linkages with the NSQF 6.5.1 Ensuring the quality of training is essential for all stakeholders within the skill ecosystem and the resultant certification is a validation and recognition of the same. Irrespective of source of learning, whether through formal or informal or on- the- job learning, the quality assurance against certain benchmarks will facilitate recognition of learning. 6.5.2 The NSQF is an important institutional mechanism that ensures consistency of nationally recognised qualifications both for formal and non- formal skills based education and training. It accommodates experiential life- long learning through mechanisms such as recognition of prior learning, improves the alignment of formal and non- formal training programs with industry requirements; and increases options for students by broadening program and progression for learners through horizontal and vertical pathways. 6.5.3 Some pathways through which quality assurance can be ensured within the NSQF are as follows: Page 22 of 38

a) Developing national standards through wide- stakeholder participation that results in development of NOS/QP for important aspects of skill development such as- for all aspects of skills development: occupational qualifications, curricula, and assessment and certification system. b) Standards should periodically reviewed, in cooperation with employers, concerned ministries, workers organisations. c) Ensuring portability and recognition of skills (certifications) across sectors, industries, enterprises and educational institutions through initiatives such recognition of prior (RPL) under the NSQF. All skills training delivered by government training institutions should eventually incorporate RPL within existing schemes. Employers must also explore the potential for introducing assessment centers for RPL, this process should be regulated by quality standards applicable to accredited training institutions. 6.5.4 In line with implementation pathway for the NSQF, all government agencies that deliver skills training will review their curriculum so it aligns with the framework. (NSDA would be responsible for implementation of NSQF). 6.5.5 Furthermore, quality assurance is integral not only to the NSQF, but also towards ensuring effectiveness of skilling initiatives that are in tandem with the changing demands from industry. Therefore, ensuring quality will extend beyond the purview of the NSQF. The following initiatives are indicative of the additional mechanisms that will be adopted to achieve the same: a) Rationalization of Government of India Schemes: The Government of India constituted a Committee on Dovetailing/ Rationalization of Central Government Schemes on Skill development implemented by various Ministries of the Government of India. The main objective of the exercise was to coordinate and integrate the skill development efforts of all the departments of the State Government. Previously, different norms as regards the eligibility criteria, duration of training, maximum amount that would be available for the training of each individual, outcomes, monitoring and tracking mechanisms etc. Additionally, for the implementing agencies the multiplicity of norms and parameters resulted in unnecessary difficulties. Thus, rationalization exercise is one such initiative towards quality assurance in Government of India Schemes b) Accreditation of Training Providers (and assessors): The accreditation of public and private training providers is to ensure that training providers (assessors) meet minimum standards related operational Page 23 of 38

management and learning outcomes for students. Verification training providers for accreditation will be processed against quality standards. Over time, all government agencies delivering skills training will become accredited against the new quality standards. c) Employers: As stakeholders play a key role in providing training to employees. Quality assurance must be delivered through on- the- job training and certification of skills Employers should strive to train their workforce as part of business development and CSR initiatives- specifically low- skilled workers. Providing apprenticeships and internships, upgrading the quality of learning and recognizing the skills acquired by apprentices against industry benchmarks. 6.6 Measure 6: Industry linkages 6.6.1 Industry is an essential partner in skill development, and there is need to encourage greater participation from the private sector. a) Sector Skill Councils (SSCs) need to act as the effective bridge between industry on the one hand and the government/academia on the other. SSCs need to strengthen their role so that the needs of industry are accurately reflected in the skill development programmes of the Government, and the curriculum of academic institutions. b) Industries will be encouraged to create more apprenticeship opportunities and would be encouraged to start funding part of the training cost as an investment for its own developed manpower. This will help reduce the disconnect between industry and vocational training centres as well as school education and vocational training, which has led to the training being less relevant to industry s needs, resulting in further alienating students from the vocational stream. c) A certain percentage of the CSR funds would be mandated for skill development d) Industries would be encouraged to provide differential wages to skilled workers and also incentivizing unskilled persons to acquire skills. e) Create a strong academia - industry linkage to ensure that the youth of the country are being provided with skills that are relevant in the workplace, and the inefficiencies arising from having to re- skill and re- train persons who have passed out from academic institutions can be avoided. This industry- academia linkage is also important to establish global competitiveness in the local market as Page 24 of 38

interaction between the two can help identify the core strengths and weaknesses in terms of manpower available in the economy. f) Industries would be incentivized to create infrastructure in the difficult areas particularly in rural, border, hilly and difficult areas, including the North Eastern States, J & K the districts affected by Left wing extremism, etc where the private sector may find it difficult to invest. A vibrantly productive population would only promote economic and social progress in these areas g) Since MSME sector continues to employ a very large part of our non- farm workforce, the policy envisages that such skills would be identified and accordingly design programmes would be designed to meet these multi- skilling requirements. h) Clusters across the sectors will be promoted to generate more jobs in the economy. 6.7 Measure 7: Independent assessment and certification 6.7.1 For meaningful skill development, there is a need for an independent and good quality third party certification, which would be adopted by institutes imparting skill development programmes as a means to bring accountability and regulation over training and certification. This would promote professional and personal development of individuals. 6.7.2 Apart from the formal sector, a large number of workers in the informal/unorganized sector have acquired skills through experience or other non- formal learning channels who are not able to derive proper market value for their services. The NSQF would facilitate certification to such persons to help them move into the formal sector jobs as long as they are able to perform to the outcome standards. This recognition of prior learning would empower millions of workers through formal recognition of their skills. In this direction, the NPSD will also ensure the following Under the NSQF, the NSQC will ensure that assessment and certification norms developed by the concerned regulatory bodies, SSC/Industry would conform to the appropriate NSQF level. Certificates issued post assessment will mention that the level of the NSQF at which it lies. Develop potential solutions for delivering high quality skill assessments which would be based on national standards (competencies) which would be valid and reliable Adopt a standard empanelment process for assessment bodies A national regulatory body would be set up to improve the accreditation/affiliation process for training providers Page 25 of 38

6.7.3 Establishing standards for assessment of candidates to maintain the quality and authenticity of the resultant certification 6.8 Measure 8: Special focus for difficult areas NE, Hill States, LWE affected areas 6.8.1 The border, hilly and difficult areas, including the North- Eastern states, J&K, and the hilly forested areas of central and eastern India, face additional challenges arising out of inadequate infrastructure, poor investment and industrial opportunities. Special attention needs to be given to the youth residing in these regions to address their needs for employment and employability. In order to provide more equitable access across the country, special efforts will be mounted to establish training facilities in deficient regions. The policy would also adopt the following a) Incentivize the private sector in the form of a policy to increase the investment rate in these areas in order to create jobs, which will facilitate job creation in a geographically balanced area. b) States would be encouraged to develop a more pro- employer labour laws to have greater share of organized sector non- farm jobs in the State c) Investment policies would comprise a skill development component d) Additional Tax/Interest subvention benefits would be provided for setting up training capacity in the remote and unserviced areas e) Training programmes for the youth in these areas need to be devised both for wage employment in the local area, as well as for employment in other parts of the country. f) Training providers shall be encouraged to set up centres in these areas by extending support in various forms, including higher costs of training, use of unutilised/under- utilised space in government premises etc. g) Schemes designed for the rehabilitation of misguided youth shall include components to help such individuals select the proper trade, based both on the candidate s inclination and aptitude h) It will be mandated that at least 10% (ten percent) of the funds earmarked for the development of these regions, such as the Border Area Development Fund, the Non- Lapsable Central Pool of Resources for the North Eastern States, the funds of the North Eastern Council, etc. would have to be used for the providing skill development trainings to individual beneficiaries of the concerned regions. i) All the RFPs of large Government projects will have a component in the proposal, which will be projecting the manpower requirement of the region 6.9. Measure 9: Inclusive approach 6.9.1 Equal access to skill development is essential for all social groups particularly women and disadvantaged section of society, to help them in securing decent employment and Page 26 of 38

moving out of poverty. Removing barriers to access and addressing their specific needs are key elements in achieving inclusive growth. 6.9.2 The NPSD will ensure that the reservations applicable to the various disadvantaged groups like SC, ST, OBCs, minorities, women and differently abled persons are enforced with appropriate gender composition. The existing schemes for benefiting these groups will be reviewed, strengthened and made more effective. New innovative schemes and measures will also be devised to ensure full and effective participation by these groups, as well as the accrual of real benefits from skill development initiatives. To achieve this, efforts will be made to mobilize capabilities and expertise of civil society organizations. 6.9.3 Skill development for women : Skill development for employability will be used as an agent of change in promoting women s employment. Women face a multitude of barriers in accessing skills and productive employment, remaining on the job due to effect of globalization or otherwise and advancing to higher level jobs, as well as returning to the labour market after a period of absence spent, for example, in raising children. a) A policy of non- discrimination will be pursued vigorously to provide equal access for women to skill development and employment. b) This Policy will aim to raise women s participation to at least 30% by the end of the 12th Plan. c) Proactive measures that overcome barriers and facilitate participation, such as hostels for women, scholarships, transport, training materials and loans, will be made available on a large scale. d) The Women s Vocational Training Programme will be expanded and the institutional network providing training facilities exclusively for women, so that they can obtain skills with high wage and self- employment potential, will be greatly expanded. e) In order to promote skills and employability of women, the sectors which employ a large number of women will be identified. These may include construction, home- based traditional crafts or piece rate work, financial and health service as well as agricultural sectors. f) Gender stereotyping in vocational courses will be eliminated to encourage women s participation in non- traditional occupations, including existing and emerging technological fields. 6.9.4 Persons with Disabilities Page 27 of 38

a) The current level of participation of persons with disabilities in skill programmes is very low, despite guidelines of reserving 3% of the seats for them. The guidelines apply only to the government sector. b) People with varying degrees of physical and mental disabilities will be provided with appropriate adjustment training and skills training to bring them in the economic mainstream and make them productive citizens. c) This Policy aims to expand the facilities for people with disabilities and to provide reasonable accommodation that enables them to access the facilities through suitable transport and building designs. d) The number of Vocational Rehabilitation Centres will be doubled in the 12th Plan and expanded further in subsequent Plans. Similar efforts will also be made at the State level to improve access and outreach. e) Training will be integrated with efforts to secure appropriate employment opportunities. Programmes of public awareness and community participation will be strengthened to promote demand for vocational training by people with disabilities as well as to facilitate their inclusion in the labour market. 6.10. Measure 10: Technology interventions in terms of LMIS and monitoring of outcomes 6.10.1 The planning of pre- employment education and training should align with future employment opportunities. Such exercise facilitates the processes to design and deliver competencies that meet the job- market requirements. Accurate skills and labour market data is also important for assessing new opportunities for workers whose skills sets may be affected by change. While keeping the trainees as the focal point of initiatives, labour market information (systems) also cover a range of stakeholders such a training providers, industry/employers, Government agency/policy makers, Assessment agencies, Certifying agencies, Funding agencies, International Agencies, Sector Skill Councils, Labour Market tracking agencies, Govt. &Private agencies. 6.10.2 The information generated under such a system should be both quantitative and qualitative in nature. The aim for LMIS is to generate forecasting trends that will be linked to broad national development strategies, so that new and existing employment prospects and their skills requirements can be identified. 6.10.3 Creation of National Labour Market Information System, an internet based information system, shall provide timely and accurate information to in both the public and private sector stakeholders by: Forecasting domestic data needs related to the supply of skills the demand for Page 28 of 38

skills, and the matching of supply and demand Allow for the identification of both current skills shortages and potential future demands for skills Increase the use of tracer studies to track the employability of graduates Identify and allocate responsibilities to institutions, bodies and agencies covering the collection, processing, management and reporting of skills data Detailed information on the courses and programs offered by all public and private training providers Provide for timely and broad dissemination of data so as to inform skills policy, program development and the choices of individuals 6.10.4 Data collected and generated will be disaggregated to reflect trends for different socio- economic disadvantaged groups and women. This should generated in such manner should be used to design subsequent policies. 6.10.5 The outcome of skills policies and systems will be measured based on performance indicators under the system, to monitor and improve their effectiveness and relevance. Key elements of evaluation process may include: Placements opportunities for trainees post- training Feedback from employers and trainees on the outcome of training Market information on current and future skills demand and channeling it for use of training and employment services providers. Employment services should include career counseling, and in providing job- matching services, information and access to labour market programmes (for example, skills training or retraining, self- employment and starting a business 6.11 Measure 11: Faculty and Trainers a) To ensure the quality of the trainers Model Teacher Training Institute will be established in every state either in the government or the PPP mode. An advisory board will be established to create an ideal operational model. b) Innovative ways of recruiting trainers will be adopted including the employment of former trainees who have gained workplace experience and of practitioners of a craft, trained as master craft persons. c) Innovative skill development schemes, in which trainees acquire theoretical learning at the institution while obtaining practical skills in the workplace, will be devised. d) Retired employees, including from defence forces will be retrained to meet the requirement of trainers and a searchable database of such volunteers will be Page 29 of 38

maintained. e) Award and incentive mechanisms, including reward and career progression systems, will be reviewed and institutionalized to improve the status of trainers. f) Mechanisms for development of Masters Trainers for Skill Development in different sectors so as to continuously upgrade the training skills of trainers. An inventory of the master trainers, sector wise, would be maintained by the concerned SSCs, and also with the NSDA. g) A system of granting Accredited Trainer Status for a limited period, to all vocational trainers of programmes, leading to National Skills Qualifications will be developed. h) Special efforts will be made to improve the gender balance among trainers. i) Industry as part of its HR policies will be encouraged to offer sabbaticals to its employees to teach. j) Scope of the existing teachers training courses like B.Ed. will be extended to include the alternate training mechanisms that include teacher cadre for vocational education. 6.12. Measure 12: Innovations in skill development 6.12.1 Currently, innovations in skill development are working in silos and hence there is a need to identify and propagate/replicate such ideas to wider stakeholders for implementation at a larger scale. 6.13. Measure 13: International equivalence and mobility of skilled manpower 6.13.1 Recognition and portability of skills abroad is an important outcome of the policy. Promoting skilled labour- force from India will therefore be an amalgamation of the following factors: a) Identification of key mobility corridors of international migration for Indian workers across varied spectrum of job roles. b) Establishing reliable information regarding labour requirements (in key sectors) in such countries of destination c) Facilitating mobility by leveraging skills as a tool for the same. This can be undertaken through institutional mechanisms such as: Referencing of Skills Qualification Frameworks between India and country of destination. Ensuring quality and uniformity in training through coordinated efforts- including capacity building of training providers to meet the set standards. Page 30 of 38

Facilitating pre- departure training for workers and up- skilling of return migrants to assess and certify skills, specifically through recognition of prior learning. Devising such frameworks to ensure that workers have their skills certified and remunerated accordingly. Establish institutional mechanisms for regular exchange of knowledge, experiences, research findings, training standards, qualifications, curricula, teaching and learning materials and innovations in skills development and in other areas. Exchange and outreach programme for teachers, administrators, specialists and students, as well as the cooperation between similar institutions in different countries. 6.14. Financing Skill Development and entrepreneurship 6.14.1 It would be the responsibility of all the stakeholders to mobilize financial resources for skill development. Moreover, a centralized financial database of expenditure on skill development would be created for timely review of the same. The policy recognizes the need to enhance the budgetary layout in the skill development space. a) Skill development would be made an integral part of all development schemes of the GOI by mandating a certain percentage of funds for skill development. The government will Identify and work closely with the various Ministries which do not have any specific skill development schemes but huge potential for jobs like mining, power, railways, coal etc b) The policy also envisages removing tax anamolies in tax administration that hinder skilling c) To fulfill the mandate envisaged in this policy apart from adequate central outlay, the private sector would be encouraged to invest in skill development through innovative methods like the self- financing models to name one. The private sector would also be encouraged to leverage the resources of the private sector by mandating a certain percentage of CSR funds for funding per trainee costs. d) The National Skill Development Agency (NSDA) has also been mandated to raise extra- budgetary resources for skill development from various sources such as international agencies, including multi- lateral agencies, and the private sector. e) Various banks have adopted the model scheme for Loans for Vocational Education and Training of the IBA, and to facilitate maximum credit reaching the needy under the Scheme, a Credit Guarantee Fund for Skill Development has been set up. Page 31 of 38

f) Revamped National Skill Development Fund. Through the NSDC, soft loans are provided to private sector partners so that additional skill development capacity can be created in the country. g) Innovation fund for entrepreneurship development 6.15 Governance of Skill Development System : Institutional Arrangements 6.15.1 Ministry of Skill Development & Entrepreneurship: The Ministry of Skill Development & Entrepreneurship has been created to coordinate the skill development efforts of Central Ministries/Departments and States and the National Skill Development Corporation (NSDC), a Public Private Partnership, set up to catalyze the setting- up of large scale, for- profit sustainable vocational institutions in the country, by encouraging private sector participation through providing low- cost funding for creation of training capacity. The mandate of the Ministry of Skill Development & Entrepreneurship are: Coordination with all concerned for evolving an appropriate skill development framework, removal of disconnect between the demand for and supply of skilled manpower through vocational and technical training, skill up- gradation, building of new skills, innovative thinking and talents not only for the existing jobs but also the jobs that are to be created Mapping of existing skills and their certification Expansion of youth entrepreneurship education and capacity through forging strong partnership between educational institutions, business and other community organizations and set national standards for it Role of coordination relating to skill development Industry- Institute linkage Bringing Public Private Partnership element in this activity - partnership with the industry who need the skilled manpower Making broad policies for all other Ministries/Departments with regard to market requirements and skill development To frame policies for soft skills Computer Education Academic equivalence of skill sets Work relating to Industrial Training Institutes National Skill Development Corporation National Skill Development Agency National Skill Development Trust 6.15.2 National Skill Development Agency (NSDA) : The National Skill Development Agency (NSDA), an autonomous body that was created with the mandate to co- ordinate and Page 32 of 38

harmonise the skill development activities in the country, has also been made a part of the Ministry of Skill Development and Entrepreneurship, along with the National Skill Development Corporation and the National Skill Development Trust. 6.15.3 The NSDA is an autonomous body which will coordinate and harmonize the skill development efforts of the Government and the private sector to achieve the skilling targets of the 12 th Plan and beyond and endeavour to bridge the social, regional, gender and economic divide (i) by ensuring that the skilling needs of the disadvantaged and marginalized groups like SCs, STs, OBCs, minorities, women and differently- abled persons are taken care of through the various skill development programmes and (ii) by taking affirmative actions as part of advocacy by the NSDA. The Central Ministries and NSDC will continue to implement schemes in their remit. The NSDA will anchor the National Skills Qualifications Framework (NSQF) and facilitate the setting up of professional certifying bodies in addition to the existing ones. 6.15.4 The NSDA will discharge the following functions: Take all possible steps to meet skilling targets as envisaged in the 12th Five Year Plan and beyond; Coordinate and harmonize the approach to skill development among various Central Ministries/Departments, State Governments, the NSDC and the private sector; Anchor and operationalize the NSQF to ensure that quality and standards meet sector specific requirements; Be the nodal agency for State Skill Development Missions; Raise extra- budgetary resources for skill development from various sources such as international agencies, including multi- lateral agencies, and the private sector; Evaluate existing skill development schemes with a view to assessing their efficacy and suggest corrective action to make them more effective; Create and maintain a national data base related to skill development including development of a dynamic Labour Market Information System (LMIS); Take affirmative action for advocacy; Ensure that the skilling needs of the disadvantaged and the marginalized groups like SCs, STs, OBCs, minorities, women and differently abled persons are taken care of; and Discharge any other function as may be assigned to it by the Government of India. Page 33 of 38

6.15.5 National Skill Development Corporation (NSDC): The National Skill Development Corporation is a non- profit company under the Companies Act 1956 set up for coordinating and stimulating private sector initiatives in skill development. Since the NSDC is to be private sector led, 51% of its equity is held by the private sector and 49% equity by the Government. NSDC is managed by a Board of Directors, whose number shall not be less than three and not more than 15. It is stipulated that the Government shall not nominate more than six directors (including the Chairman) and the private sector shall not nominate more than nine Directors. The key objectives of the NSDC are as under: To involve the private sector and create capacity for skill development in various sectors including the high growth sectors, through appropriate mechanisms. To play the role of market maker correlating and bridging demand supply asymmetries, and creating a viable skill development chain, including in sectors where the market mechanism is ineffective or missing such as, domestic service, construction, facility management etc in the unorganized sector. To perform the role of a multiplier organization, by engaging with the best and most innovative entities on the ground as source of both innovation and practice enablement and dissemination. To incubate and facilitate the setting up Sector Skill Councils 6.15.6 The National Skill Development Fund (NSDF): The National Skill Development Fund was set up as a Trust under the Indian Trusts Act, 1882, with an initial corpus of Rs 995.10 crores received from the Government of India.The Trustees of the NSDF are the Secretary, Department of Economic Affairs, Secretary, Planning Commission and Chairman NSDC. The objectives of the NSDF include Facilitation and encouragement of skill development among the work force in the country Custody of funds, and to act as a receptacle for financial contributions by the Government/ Government entities, multilateral and bilateral donors, as well as other private sector donors who wish to route their donations for skill development through the government. Supervision of the activities of the NSDC, and Overseeing the employment of the funds for the purposes mentioned in agreements signed with contributors as well as in the Investment Management Agreement signed with the NSDC 6.15.7 The NSDF has entered into an Investment Management Agreement with the NSDC, under which the latter is appointed as an Investment Manager to utilize and manage the funds transferred by the NSDF to the NSDC. NSDC is required to use the funds for achieving the objectives for which NSDC has been set up. Page 34 of 38

6.15.8 Sector Skill Councils: In order to ensure that the skill development efforts being made by all the stakeholders in the system are in accordance with the actual needs of industry, Sector Skill Councils (SSCs) are being set up, and NSDC has been facilitating the same. Sector Skills Councils are industry- led bodies and industry- governed bodies, and will complement the existing vocational education system for the Industry Sector in meeting the entire value chain s requirements of appropriately trained manpower in quantity and quality across all levels on a sustained and evolving basis. 6.15.9 SSCs will discharge the following functions: a) Identification of skill development needs including preparing a catalogue of types of skills, range and depth of skills to facilitate individuals to choose from them. b) Development of a sector skill development plan and maintain skill inventory. c) Determining skills/competency standards and qualifications and getting them notified as per the NSQF. d) Standardization of affiliation, accreditation, examination and certification process in accordance with the NSQF as determined by the NSDA. e) Participation in the setting up of Affiliation, accreditation, examination and certification norms for their respective sectors. f) Plan and facilitate the execution of Training of Trainers. g) Promotion of academies of excellence. h) Sector Skill Councils pertaining to sectors that are relevant for ST/SC and minority populations will take concrete steps to bridge the gap between general population and these socially disadvantaged groups in the fields of employment and employability, including by ensuring availability of trainers for the same. 6.15.10 As industry- led bodies, who have been empowered to determine the qualitative and quantitative aspects of the skills required for each level, as well as the training and certification norms, the SSCs shall ensure that the persons trained and skilled in accordance with the norms laid down by them are assured of the necessary outcomes in terms of percentage of persons finding employment at decent wages. 6.15.11 Other stakeholders in Skill Development: Partnerships will be consciously promoted between Government, industry, trade unions, local governments, civil society institutions and all skill providers. It will also include, training providers, professional societies, Self Help Groups, Cooperatives and NGOs/civil society institutions. Creation of an institutional mechanism and regular consultation with stake holders will form the corner stone of Skill Page 35 of 38

Development Initiative. Page 36 of 38

Chapter 7: Monitoring and Evaluation 7.1 A robust monitoring and evaluation mechanism shall be integrated into the National Policy on Skill Development. Every skill development activity will be monitored along with the various agencies involved in the implementation of the skill development programmes to ensure that the outcomes are achieved. 7.2 Monitoring & Evaluation would play a critical role in the Skill Development of workforce in the country. This becomes even more relevant considering the fact that the skill development program would need to be scaled up sizably to cover entire country. In such a scenario, IT- based Monitoring & Evaluation is the only feasible way for effective monitoring. The ERP platforms of all Government of India Skill Development programs shall be integrated so that the data interaction is possible. For candidate and trainer level data, integration should be done using attendance and placement authentication (of beneficiaries and trainers) services of UIDAI. The development of such a Labour Market Information System (LMIS) for capturing the details of skill trained persons and getting self/wage employment shall be necessary for the same. It will also facilitate the creation of a national data- base. This data- base will be inter- linked with related sites for effective monitoring of skill development efforts to achieve the desired outcome. 7.3 The NSDA shall be the central repository of MIS, as an aggregator from the ERP/MIS solutions of various Ministries/Departments. This Agency may then set in place a system for pulling in information from different data structures and provide necessary technical support to the ministries for the required exchange of information. 7.4 Government (Both Central and State Government): Every scheme of the government must also ensure that training module and training provider would be judged on the results in terms of the employment being procured by the persons trained, and the salaries being paid for these jobs. Decent salaries for a significant percentage of the persons trained would happen only if the training were such as to meet the needs of the employers. 7.5 Transparency will be the cornerstone of the monitoring and evaluation system. All information regarding the persons trained under various schemes, and their placement position, shall be made available online, to facilitate social audit. Monitoring and evaluation shall be made very broad- based, involving the participation of all sections of society, and it will not be a closed door affair. Page 37 of 38

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