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Skill Development Training Scheme of NMDFC

Skill Development Training Scheme

Skill Development Training Scheme of NMDFC

The National Minorities Development and Finance Corporation (NMDFC) of India has implemented a Skill Development Training Scheme to promote Minority Communities by providing concessional finance for the upgradation of entrepreneurial skills and income generation activities. The programme’s focus is on skilling and placement in the formal sector and also includes vocational training for the welfare of Minorities. Let us look in detail about the Skill Development Training Scheme of NMDFC in this article.

To know more about the National Skill Development Mission

Objectives of the Scheme

The following are the objectives of the Skill Development Training Scheme of NMDFC.

  • To promote Skill Development for the youths belonging to the minority communities throughout the country.
  • To enable and mobilize a large number of Minority youths including the artisans who are working in the traditional art and craft sector to take up industry designed quality skill training, become employable and earn a respectable livelihood.
  • To provide skill training for generating sustainable livelihood opportunities for the marginalized minority groups and align them towards mainstream job opportunities, with the preference given to the women and to the persons who are involved in the traditional professions.
  • To ensure at least 70% placements of the trained applicants including wage and self-employment.
  • To create self-employment and job opportunities for the Minorities by catalyzing the innovation ecosystem that enhances the productive entrepreneurship germinates, sustains and leads to the betterment of wage and self-employment opportunities for the particular target group.

Eligibility Criteria

To apply for the Skill Development Training Scheme of NMDFC with subject to the specific provisions of the scheme, all the minority youth citizens must be eligible for the grant, who fulfil the following criteria:

  • Members of the notified National Minority Communities such as Muslim, Sikh, Christian, Buddhist, Jain and Parsi shaves are eligible to apply for this scheme.
  • The applicant’s family annual income for the Financial Year immediately preceding the date of scheme application must be less than Rs. 6 Lakhs from all sources including that of the spouse.
  • The preference will be given to the specific skills having local demand and potential towards the growth and development.
  • Individuals and woman applicants who are engaged in occupational groups are eligible under this scheme.
  • The applicant should be enrolled in skill development training.
  • The applicant’s age limit to be above 18 years and below 55 years of age, as on the date of application as per the age criteria that is prescribed in the Qualification Pack (QP) concerned are eligible for the skill development programme of NMDFC.
  • The applicants who are already trained under any other Government training programme of skill development are not eligible under this scheme.
  • The applicant should not be self-employed
  • The applicant must not be a dismissed Government employee.

Trade, Duration and Cost of Training

  • All trades and job roles that are prescribed under the National Skills Qualification Framework (NSQF) are covered under the skill development scheme of NMDFC.
  • The training base cost will be guided as per common norms. It will be based on per hour fee notified by the Ministry of Skill Development and Entrepreneurship, Government of India.

The present per hour fee with all cost inclusive are as follows:

Category I Rs. 42.4 per hour
Category II Rs. 36.4 per hour
Category III Rs. 30.3 per hour
  • The courses duration is between 200 to 250 hours (theory and practical classes) would be considered under this programme. The per-hour fee will be subjected to the revision by MOSD&E, from time to time. The training cost would be inclusive of all cost components such as mobilization of applicants (Advertisement and publicity expenditure), Trainers’ training, Curriculum, Equipment, amortization of Infrastructure costs or Utilities, Salary of trainers, Teaching Aid, Raw material, Placement expenses and Post-placement tracking or monitoring etc.
  • In addition to the training cost, the third party assessments would be undertaken through the Sector skill councils and the assessment fee will also be borne by the NMDFC in respect of only successful applicants.
  • The fee has to be paid as per the scheduled fees notified by the Ministry of Skill Development/ National Skill Development Corporation.
  • 100% of the training cost or course fee for the skill training programme will be provided by the NMDFC.
  • As per the approved scheme of the NMDFC, a stipend of Rs. 1000 per month per trainee will be given for a maximum period of 6 months.

To know more about the Skill Training for Rural Youth (STRY)

Commence of Training Programme

The training programme would commence only after the acceptance of terms and conditions as laid down in the approval that has been issued by the NMDFC and the sanction order is issued by the Special Central Assistance (SCA) to the concerned Project Implementation Agencies (PIAs). The sanction will be valid for a period of one year from the date of sanction order issued by SCA. The programme must commence within 1 month from the date of the sanction letter issued by SCA.

Release of Financial Assistance

The sanctioned Grant-in-aid is released by the NMDFC in 3 instalments are as follows:

  • First Instalment: In the first instalment, 30% of the total sanctioned amount on commencement of training batch against validated applicants will be released. In addition, 50% of the stipend amount will also be granted to the applicants.
  • Second Instalment: Upon successful completion and certification of the trainees, 50% of the total sanctioned amount will be released as the second instalment.
  • Third Instalment: On outcomes based on placements, 20% of the total sanctioned amount would be released along with the 50% of balance stipend amount in the third instalment.

The payments to the PIAs would be based on the number of outcomes achieved. The payment schedule mentioned above is subject to the following:

  • This applies only for the fresh/ new training.
  • The sanctioned amount for the first instalment of 30% will be released by the NMDFC to the SCA, as soon as the demand of advance is received with trainees list and acceptance of the sanction letter. The stipend amount would be directly transferred in the bank accounts of the selected applicants.
  • The dropouts will not be taken for the 2nd and 3rd instalments. The agency will be allowed to replace 10% of maximum applicants against the drop out applicants within one month of commencement of training.
  • The 1st instalment of payment in respect of the dropouts will be adjusted in the next tranche to be disbursed in respect of the continuing applicants.
  • The 2nd instalment of 50% of the sanctioned amount is released on the acknowledgement of the following certificates from the Training Institute duly verified and forwarded by the SCA:
    • Trainees list along with complete details
    • Details of assessment and certification by Independent Agency produced by PIA/ SCA after the completion of the training programme
    • Utilization Certificate on GFR 19-A for earlier released funds
    • Proof of Minutes of the Selection Committee Meeting comprising of the representative of SCA & PIA,
    • Copies of Advertisements along with the details of News Papers and dates.
    • Details of disbursement of stipend through DBT
    • Photographs of each training programme
  • The 3rd instalment of 20% of the amount sanctioned amount and 50% of the stipend amount is released on an acknowledgement of the following from the Training Institute.
    • Proof of placement of a minimum of 70% of the candidates in wage/ self-employment.
    • Copies of bank passbooks of the trainees (proof for transfer of stipend)

Click here to know about Maulana Azad National Academy for Skills (MANAS)

Procedure for Selection of Trainees

Kindly follow the below steps to get registered under the skill development training programme.

Approach PIAs

Step 1: All eligible entrepreneurs can approach the nearest PIAs (Project Implementing Agencies) to apply for the Skill Development Training Scheme of NMDFC.

Step 2: The PIA would invite applications through advertisements in local newspapers and take help of the State Channelizing Agency and District Administration officials for mobilizing the target groups.

Selection Process

Step 3: A selection committee must be constituted for the selection of suitable candidates as well as monitoring of the current course with a nominee from the SCA and PIA.

Step 4: The selection committee must draw the minutes that should be signed by all the members.

Placements Session

Step 5: The SCA and PIA have to ensure the placement for at least 70% of trainees in wage employment and self-employment.

Step 6: The placement must be within 3 months of the completion of course training with at least 50% of the trainees passing out being placed in wage employment.

Step 7: The SCA must encourage and give preference to trainees by extending the loan for starting self-employment venture.

Inspection Process

Step 8: The representative of the NMDFC or SCA will have the right to inspect the accounts books, records, interact with each trainee as well as with the trainer and officials of the PIA.

Third-party Certification

To ensure independent, unbiased assessment and certification of trained candidates, costs for the certification would be payable by the NMDFC to an independent third party including an institute that is authorized for conducting assessments and certifications. The certification fee present being Rs. 600 to 1500 per candidate, will be regulated as per the guidelines issued by the Ministry of Skill Development and Entrepreneurship, Government of India, from time to time.

Monitoring and Tracking

All the trainees trained under the Project should be tracked for a period of one year from the date of certification. The PIA must track the trainees as per the Government guidelines of Ministry of Skill Development and Entrepreneurship from the date of certification with respect to their career progression, retention and other parameters. Each applicant must be tracked at least once every month for a period of one year.