Direct Benefit Transfer (DBT) in NAPS

July 4, 2022

According to Ministry of Skill Development & Entrepreneurship (MSDE), the National Apprenticeship Promotion Scheme (NAPS) will now be a part of Direct Benefit Transfer (DBT) scheme.

Key Facts

With the inclusion, the NAPS will provide direct government benefits to all apprentices.
Earlier, companies used to pay entire amount to apprentices and then seek reimbursement from the government.
With the launch of DBT scheme, government will transfer the contribution of apprentices, directly to their bank accounts through National Skill Development Corporation (NSDC).
Government will pay 25% of the stipend, which is payable up to Rs. 1500/- per month.

National Apprenticeship Promotion Scheme (NAPS)

The National Apprenticeship Promotion Scheme was launched on August 19, 2016 for promoting apprenticeship training across India. Under the scheme, financial support is also provided to establishments undertaking apprenticeship. It is aimed at motivating employers to hire apprentices and aiding them in discovering right job roles, besides maximising their potential through in-depth skill development. Over 12 lakh apprentices have been engaged with several industries, as of now.

Significance of the scheme

The National Apprenticeship Promotion Scheme is helping India in becoming the ‘Skill Capital of the World’, by introducing various apprenticeship reforms which aims to build a skilled manpower.

National Skill Development Corporation (NSDC)

NSDC is a not-for-profit public limited company. It was incorporated on July 31, 2008. It was set up by Ministry of Finance in a Public Private Partnership (PPP) model. Government of India holds 49% share capital of NSDC, while private sector holds the balance 51% share capital.

Direct Benefit Transfer (DBT)

DBT is an attempt for changing the mechanism of transferring subsidies. Under the scheme, subsidies are directly transferred to people through their linked bank accounts.

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