Pradhan Mantri Kaushal Vikas Yojana 2.0

2016 – 2020 New Guidelines:

1.Background

1.1 Currently, only a very small proportion of India’s workforce has any formal skill training. Not surprisingly therefore several sectors of the country’s economy face shortage of skilled people and are mired with low productivity levels due to poor quality of workforce. At the same time, large sections of the country’s youth are looking for economic and livelihood opportunities. In this context, skill development has become a key priority area for the country. This is not only essential for economic development but would help to fulfill youth aspirations for good quality, better paid jobs and self-employment opportunities. This would also enable the country to take advantage of its favorable demographic profile. With a large pool of skilled people, India has an opportunity to become a skill provider for the world, particularly the ageing developed world.

1.2 Pradhan Mantri Kaushal Vikas Yojana (2016 – 2020) is a modified and an improved version of “PMKVY 2015 – 2016”. It is the flagship outcome-based Skill Training Scheme of the Ministry of Skill Development & Entrepreneurship (MSDE). This Skill Certification Scheme aims to enable and mobilize a large number of Indian youth to take up skill training and become employable and earn their livelihood.

1.3 The Scheme shall be aligned to the “Common Norms” approved by the Common Norm Committee and notified by MSDE. It will ensure an equitable spread of opportunities in Skill Training so that the youth in all parts of the country can be benefitted. This will boost the productivity of the country’s workforce by enabling them to acquire high quality skill training across a range of sectors. It also seeks to significantly scale up skill training activities at a faster pace without compromising on quality.

1.4 Institutions comprising of the National Skill Development Corporation (NSDC), Sector Skill Councils (SSCs), Assessment Agencies (AAs) and Training Partners (TPs) are already in place for implementation of the Scheme and more may be added during the course of the Scheme.

2.Objectives

The objective of this Scheme is to encourage and promote Skill Development for the youth throughout the country by aligning itself with the “Common Norms” guidelines. The scheme also needs to be aligned to complement all other Missions of the Government like Make in India, Digital India, Swachh Bharat, and Smart Cities. Specifically, the Scheme aims to:

  • Enable and mobilize a large number youth to take up industry designed quality skill training, become employable and earn their livelihood.
  • Increase productivity of the existing workforce, and align skill training with the actual needs of the country.
  • Encourage standardization of the Certification process and put in place the foundation for creating a registry of skills.
  • Benefit 10 million youth over the period of 4 years (2016 – 2020).

3.Strategy & Approach

  1. a) The Scheme will provide pay-outs to the Training Partners (TPs) in alignment with the Common Norms for successful completion of skill training and certification to approximately 10 million youth in a span of four years from the date of implementation of the Scheme.
  2. b) This Scheme shall be implemented through Public-Private and Public-Public partnerships.
  3. c) NSDC will be the implementing agency for this Scheme. It is proposed to also involve the State Governments through a project-based approach under PMKVY 2.0. The same will have separate guideline document.
  4. d) Assessment Agencies and Training Partners for all purposes of the Scheme will be separate and no overlap of roles will be permitted to maintain transparency and objectivity.
  5. e) Trainings shall be provided only at the approved Centres as defined in clause 4.3 with exception for Special areas.
  6. f) Centres will ensure standardized and approved branding norms as defined in the Branding Guidelines of the scheme.
  7. g) Biometric Devices for capturing student and trainers’ attendance (Aadhaar enabled) shall be mandatory at the PMKVY Centres.
  8. h) The pay-outs will be affected through bank transfer to the Beneficiaries’ and Training Partners’ accounts as applicable under the Common Norms.
  9. i) Definitions of terms and expansions of acronyms used in this document are listed in Annexure 1

4.Franchising Arrangements

Each training partner would be responsible for its entire franchisee network and the infrastructure of training centres. PMKVY aspires to build quality centres and thus discourage franchising arrangements.

Only first level of franchising is permitted under PMKVY however Franchisee centres are subject to approval from Centre Accreditation and Affiliation Committee. The first level of franchising is defined as an agreement between a Franchisee and a Franchisor where a Franchisee does not enter into an arrangement with another party to sublet its training targets. Suitable amount of due diligence must be done by Franchisee & Franchisor before entering into any arrangement. A legal agreement must govern Franchise and Franchisor arrangement. NSDC shall not interfere in operational or personal disputes arising as a result of conflict between the two parties however Training Partner is supposed to produce the legal agreement with relevant supporting to NSDC in the specified format as and when requested for.

4.2 Training Centres

To conduct trainings under PMKVY, centres have to be accredited and affiliated as per guidelines defined in SOP Document – Centre Accreditation and Affiliation Guidelines.

Training centre has to ensure the attendance records are maintained and are filed for review purposes at all times. Assessor will verify the attendance records before conducting the assessments for the batch.

5.Target Beneficiaries

In line with the objectives stated above, this Scheme is applicable to any candidate of Indian nationality who:

  1. a) Unemployed youth, school/college dropouts, and
  2. b) Possesses an Aadhaar Card and a Bank account.
  3. c) Verifiable Alternate ID like PAN or Voter ID (applicable only for the states of North East Region and J&K – Additional IDs may be added from time to time).
  4. d) Any other criteria as defined by the Sector Skill Councils for the respective job roles.
  5. e) In case of corporates or factory premises, candidates cannot be their own employees or daily wagers.

Training Centre shall also have to facilitate opening of Jan Dhan Bank accounts for the candidates who do not have the bank accounts.

6.Monetary Pay-outs

PMKVY will follow complete transparent funding of skill training without any intermediaries and pay-outs directly transferred to the stakeholders’ account.

Pay-outs will be directly transferred to the Training Partner’s bank account as per the below milestones:

  • On Commencement of Training Batch against validated candidates- 30%
  •  On successful certification of the trainees- 50%
  •  Outcome based on placements- 20%

6.1 Base Costs

The per candidate base costs for different Sectors will be either Rs. 28.9 or Rs. 34.7 or Rs. 40.4 as per the trainings in various job roles/sectors defined in 3 different categories. These 3 categories would be defined in the SOP Document – Per hour Base Costs for trades/sectors.

Costs will be updated as per the Common Norms in case of any changes.

The amount disbursed to the Training Partner against a dropped or failed candidate in first tranche shall be adjusted in subsequent tranches. Candidates may enrol second time in the same/different course in the Scheme but the pay-out for such candidates shall only be given for a maximum of two courses provided that there is a six-month gap between the certification date of the first course and batch start date of the subsequent course. Annual reconciliation of pay-outs disbursed against each candidate certified and placed by Training Partner shall be undertaken before disbursal of the final tranche. Any excessive payment shall be adjusted and released or recovered from the Training Partner. Special provision for concession in the placement conditions under Agriculture sector, Handicraft sector and related job roles would be made under PMKVY.

The Union Cabinet has approved the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) to provide skills training to youth across the country. Decision in this regard was taken in the Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.