Financial Assistance for Skill & Entrepreneurial Development

Financial Assistance for Skill & Entrepreneurial Development

Financial Assistance for Skill & Entrepreneurial Development

As a measure to provide training to the disabled persons and to make them capable, self-dependent via proper technical training in the field of traditional and entrepreneurship, the Government of India has initiated the Scheme for Financial Assistance for Skill & Entrepreneurial Development. The task of administering and implementing this scheme is entrusted with the National Handicapped Finance and Development Corporation (NHFDC). Under this scheme, the Government provides financial assistance in the form of a grant to conduct the training. In this article, we will look at the Scheme for Financial Assistance for Skill & Entrepreneurial Development in detail.

Financial Assistance for Training

The Government of India offers financial assistance in the form of a grant for sponsoring the training to disabled persons. The Training will be conducted through the following agencies

  • Through the State Channelizing Agencies, where such Agency sponsors the training
  • Through the Bank implementing NHFDC scheme, where the training is sponsored by such bank
  • Though the training institute/organisation, where NHFDC conducts the training by hiring the services of reputed national/state level institution directly

Scope of the Scheme

The scope of the Scheme for Financial Assistance for Skill & Entrepreneurial Development is to provide training for the following beneficiaries:

  • To provide training to beneficiaries who have received a loan from NHFDC through the SCA or Bank implementing NHFDC scheme and are successfully pursuing their income generating activity.
  • Technical training for beneficiaries who have been sanctioned loan and are waiting to receive a loan
  • The potential beneficiary who wish to avail loan from NHFDC and fulfil the eligibility criteria for availing the loan

Eligibility Criteria

The applicant should fulfil the following eligibility criteria for availing loan from NHFDC under the Scheme for Financial Assistance for Skill & Entrepreneurial Development, and:

The beneficiaries should be in the age between 15-50 years

  • Any Indian Citizen with forty percentage or more disability
  • Relevant educational, technical, vocational qualification or experience and background
  • For persons with mental retardation, the age relaxation is to 14 years in place of 15 years

Duration of Training

Under Scheme for Financial Assistance for Skill & Entrepreneurial Development NHFDC is conducting entrepreneurial development training for one year.

Amount of Grant

As per this Financial Assistance for Skill & Entrepreneurial Development, NHDC provides 100% of the total recurring cost of the training programme to eligible displaced person.

Stipend Details

The recurring training cost will include a stipend of Rs. Five hundred per week per trainee (Rs 2000 per month to the trainee) to cover the cost of transportation and other incidental expenses.

Note: The training institute/SCA shall release the stipend in favour of the trainee through A/c payee cheque only.

Training Institute and Document Required

The detail of training institute and documents required for getting financial assistance under Scheme for Financial Assistance for Skill & Entrepreneurial Development is explained below:

Training through Government training Institutes

In the case of training, proposal anticipates the training to be conducted by Government Training Institutes brief information about such organisation and training facilities available with them should be submitted to NHFDC. Eligible Government Training Institutes are given here:

  • Industrial Training Institute (ITI)
  • Polytechnic College
  • Engineering College
  • Agriculture University
  • National Institute for the Entrepreneurship and Small Business Development (ESBD)

Training through Reputed Private training Institutes

If the training proposal foresees involving the reputed private training institutes; a profile of the institute, its record particularly training conducted for the disadvantaged section of the society should be submitted to NHFDC. For conducting training for visually and speech and hearing impaired, the facilities of the institute should be examined and have to be indicated in the training proposal.

Note: No document is required for NHFDC directly hire the services of the training institutes for conducting the training.

Details of Inclusive Training

The disabled person can also be included in regular batches of scheduled training along with non-disabled persons. In such a case, the number of persons with disabilities and the nature of their disability should be indicated in the proposal.

Procedure for Obtaining Financial Assistance

The entrepreneur has to submit the training proposal to National Handicapped Finance and Development Corporation by the State Channelizing Agency or Bank implementing NHFDC schemes.

Note: Reputed National or State level training organisations may also directly approach the NHFDC with the training proposal.

The training proposal has to be prepared in accordance with the guidelines of Scheme for Financial Assistance for Skill & Entrepreneurial Development.

Proposal for Training

Proposal for imparting training to Disabled Person under Financial Assistance for Skill & Entrepreneurial Development” Scheme can be made by any of the following agencies:

  • Reputed National or State level training institutes
  • The State Channelizing Agencies implementing NHFDC schemes for the benefit of Disabled Persons
  • Banks implementing the NHFDC schemes for the benefit of Disabled Persons

Identifying the Trade and Training Institute

Trade in which training is to be granted needs to be carefully identified. Where the training proposal is made, the trade is to be identified in consultation with the training institute. The identified trade should have the potential for employment or self-employment for Persons with Disabilities.

Awareness Programme

An awareness and motivation programme has to be conducted in the locality where the training is to be organised in order to draw an adequate number of Persons with Disabilities.

Proposal for Conducting Training

Proposal for conducting the training need to be furnished with NHFDC in the prescribed format. The application form for proposal is given here:

Skill_training

Sanction of Proposal

NHFDC would consider the proposal, and after the verification, the intimation will be sent to the applicant regarding the sanction/rejection of the proposal. The training programme should be started only after formal sanction of NHFDC is conveyed.

  • The training programme will commence only after obtaining formal sanction from NHFDC.
  • The training programme should commence within three months from the date of issue of sanction letter.
  • In the event of non-commencement of training programme within the prescribed period, the sanction will expire, and in such cases, renewal of sanction letter from NHFDC will be essential before commencing the training.

The Release of Financial Assistance

Fifty Percentage of Financial Assistance sanctioned will be released as advance by NHFDC to the proposer. To get the initial financial assistance, the proposer needs to submit following documents

  • List of trainees
  • Minutes or proceedings of the selection committee for selection of trainees
  • Copy of the advertisements certified under the signature of CE, Head, Course Co-coordinator of the Training Institute, M.D.of the SCA
  • Acceptance of terms and conditions of sanction

Note: List of trainees needs to be submitted in a prescribed format. We have here with attached the application form for furnishing list of trainees.

Skill_training- C

Final Release of Financial Assistance

The balance 50% of the sanctioned amount will be released after the completion of training and subject to submitting the following:

  • Attendance Records Copy
  • Copy of certificate issued on successful completion of training
  • Details of expenditure sustained on the training programme duly certified by a Chartered Accountant in practice and counter-signed by CEO, Head, and Course coordinator of the Training Institute or proposer.
  • Copy of money receipt against the stipend amount paid to disabled trainees against stipend paid. (You can submit a certified copy by the CEO, Head, and Course coordinator of the Training Institute or proposer)

Inspection

The representative of NHFDC has the right to inspect, be present during the training.

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Post by Renu Suresh

Renu is experience content writer specialised in compliances and company rules.