National Skill Development Corporation NSDC

On October 20, 2009, India’s Finance Minister Pranab Mukherjee has launched National Skill Development Corporation.
  • The NSDC is a unique Public-Private Partnership (PPP) Enterprise.
  • As against 40 million people currently who have received any kind of formal or non-formal training, the new vision envisages creation of a pool of 500 million skilled people by 2022
  • NSDC has been incorporated as a not-for-profit organization under Section 25 of the Companies Act, 1956 by the Ministry of Finance.
  • It has been formed as 51:49 shareholding of private and government.
  • The company as a public-private initiative will help to hone the talent of India’s workforce in 21 high-growth industries.
  • Besides Ministry of Finance, all prominent industry bodies have contributed to the initial capital of this venture.
  • It will primarily focus on tackling 30 percent of the total skill gap of India’s workforce over the next decade.
  • Two areas which can be taken up for immediate consideration are adoption of a few ITI’s by the corporation on a management contract, so that models for better management of the existing infrastructure can be evolved.

Background: PM’s National Council on Skill Development

  1. The Prime Minister’s National Council on Skill Development was constituted on 1st July 2008 in pursuance of the decision of the Cabinet at its meeting held on 15th May 2008 on “Coordinated Action for Skill Development and setting up of the National Skill Development Corporation“,
  2. This Council is at the apex of a three-tier structure and is concerned with vision setting and laying down core strategies.
  3. To promote private sector action for skill development, an institutional arrangement in the form of a non-profit corporation called the National Skill Development Corporation was proposed to be set up by the Ministry of Finance.
  4. The 3 pronged structure for skill development under Prime Minister’s National Mission on Skill Development comprises of the Prime Minister’s National Council on Skill Development, the National Skill Development Coordination Board and the NSDC.
  5. The major Functions of the Council are to set the basic principles, which will govern the overall strategy of skill development.
  6. The function of the Board would be to integrate the efforts being made by various Government Ministries and Departments in the area of skill development.
  7. The role assigned to NSDC consists of harnessing the energies of the private sector in supplementing the efforts being made by various Government entities.

The specific mandate of the NSDC is to stimulate and co-ordinate private sector initiatives in the skill development sector, with a view to realising the core vision of the Prime Minister’s Skill Development Council.

The Vision:

  • The vision outlined by the Prime Minister’s Council calls for serious up-scaling of the skill development targets.
  • Hence, as against 40 million people currently, who have received any kind of formal or non-formal training, the vision envisages creation of a pool of 500 million skilled people by 2022.
  • This translates into a rapid escalation of the training and skill development capacity, and, a quantum leap in the number of trades, wherein training is currently being imparted through existing institutes.
  • The vision also emphasis, a high degree of inclusivity, which shall effectively deal with the current, divides prevailing in our society, such as gender, rural and urban, organized and un-organized employment, and, traditional and contemporary work places.
  • In order to achieve the mission outlined in the vision, it has become imperative for Government to engage with the private sector, through long term partnerships to achieve synergy in delivery and implementation.
  • The NSDC, therefore, is the important component of the overall roadmap for radically transforming India’s skill landscape.
  • Typical ‘market failure’ segments, comprising backward areas, under-privileged sections of the society and non-organized sectors occupy primacy in NSDC agenda.

Skill Development Programmes in India:

  • Skill development programmes are being run by 17 Ministries/Departments in the Government of India. Large budgetary outlays are being earmarked for these programmes.

Other Functions:

  • It will make periodic as well as an annual report of its plans and activities and put them inthe public domain.
  • There may also be a National Skill Development Trust which can receive funds to be managed by the National Skill Development Corporation.
  • The corporation/trust will be a flexible institutional arrangement to be able to deliver on jobs required by the market, related to its skill deficit, through training programmes operated or partnered by it.

With inputs from Finance Ministers Speech, Planning Commission


  1. Anonymous

    October 21, 2009 at 7:38 pm

    Great collection sir

  2. Anonymous

    October 21, 2009 at 10:17 pm

    really of great help……….

  3. Anonymous

    October 23, 2009 at 5:40 am

    its very nice blog bt could you plz post all the committees set up by govt.

  4. Anonymous

    October 23, 2009 at 6:06 am

    crisp data abt NSDC…… nyc one….


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