Lok Sabha Question No. 2099 (UNSTARRED), answered on 2017-03-15
Subject: Financing of Vocational Education and Training
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: BOORA NARSAIAH GOUD

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## UNSTARRED QUESTION NO.2099 TO BE ANSWERED ON 15.03.2017

## FINANCING OF VOCATIONAL EDUCATION AND TRAINING

## 2099. DR. BOORA NARSAIAH GOUD:

## Will  the  Minister  of  SKILL  DEVELOPMENT  AND  ENTREPRENEURSHIP  be pleased to state:

- (a) the  details  of  ways  in  which  technical  vocational  education  and  training  is  being financed in the country;
- (b) whether Corporate Social Responsibility (CSR) is permitted in Skill Development and Training and if so, the details of funds so far flown into this by PSUs and private companies during the last three years, company-wise and State-wise;
- (c) the quantum of funds of CSR that have been spent on Skill Development during the last three years and the quantum of job opportunities provided thereunder;
- (d) whether  with  the  raising  skilled  labour  costs,  large  and  medium  companies  are investing in machinery instead of labour; and
- (e) if so, the steps taken by the Government to arrest this trend?

## ANSWER

## MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP (SHRI RAJIV PRATAP RUDY)

- (a) There are two broad financing models for technical/vocational education and training:
- i.  Fee based model where the cost of training is met by the trainees and
- ii.  Grant based model where the cost of training is fully/partially met through grant in aid by the Government.

(b) & (c) Skill development is listed as an activity under Section 135 of the Companies Act, 2013 for Corporate Social Responsibility (CSR) projects. The National Skill Development Fund (NSDF)  is  a  public  Trust  set  up  by  the  Government  of  India  for  raising  funds  both  from Government and Non Government sectors for skill development in the  country.  The Fund is contributed  to  by  various  Government  sources,  and  other  donors/contributors  to  enhance, stimulate and develop the skills of Indian youth by various sector specific programs. National Skill Development Fund (NSDF) has signed 17 Memorandam of Understandings (MoUs) with several PSUs and Corporates to promote skill development initiatives under Corporate Social Responsibility (CSR) with a total Financial Commitment of Rs. 84.81 crore. Details of the MoUs signed are at  Annexure-I.  So far  53,462  participants  have  been trained  under the project  of MoUs.

- (d) & (e) It is a fact that industries are moving towards automation and new technologies to reduce costs and increase production and competitiveness. This is a global phenomenon and the Government is closely analyzing this trend. The Government has taken steps to develop alternate  employment  opportunities  for  the  labour  that  might  get  affected  due  to  automation. The  Pradhan  Mantri  Kaushal  Vikas  Yojana  (PMKVY)  aims  to  provide  candidates  soft  skills, financial literacy and digital learning in addition to the domain knowledge. The scheme aims to provide broader learning to the candidate making him more employable in the job market. The Ministry of Skill Development and Entrepreneurship (MSDE) through its Pradhan Mantri Yuva Yojana  (PMYY)  aims  to  create  an  alternate  path  through  creation  of  new  enterprises  by candidates.

## Details of the MoUs signed is as follows:

| S.No.   | Agency with which MoU was signed                             | MoU Start Date   | Duration (Months)   | Total Funds Committed (in Rs.)   |
|---------|--------------------------------------------------------------|------------------|---------------------|----------------------------------|
| 1       | Powergrid                                                    | 14.01.2015       | 30                  | 65,296,875                       |
| 2       | National Thermal Power Corporation Limited (NTPC I)          | 08.05.2015       | 23                  | 65,008,125                       |
| 3       | National Thermal Power Corporation Limited (NTPC II)         | 26.06.2015       | 57                  | 300,000,000                      |
| 4       | Rural Electrification Corporation Limited (RECL)             | 22.08.2015       | 27                  | 100,000,000                      |
| 5       | Mineral Exploration Corporation Limited (MECL)               | 01.10.2015       | 24                  | 2,670,000                        |
| 6       | Hindustan Computers Limited (HCL)                            | 14.09.2015       | 18                  | 4,818,000                        |
| 7       | National Mineral Development Corporation (NMDC)              | 29.02.2016       | 36                  | 12,000,000                       |
| 8       | National Aluminium Company Limited (NALCO)                   | 19.11.2015       | 34                  | 13,120,045                       |
| 9       | Department of Public Enterprises (DPE)                       | 29.09.2016       | 6                   | 37,300,000                       |
| 10      | Coal India Limited (CIL)                                     | 03.05.2015       | 23                  | 150,000,000                      |
| 11      | Computer Age Management Services (CAMS)                      | 07.09.2015       | 7                   | 2,400,000                        |
| 12      | Cholamandalam Investment and Finance Company Limited (CIFCL) | 31.03.2015       | 12                  | 5,000,000                        |
| 13      | Airports Authority of India                                  | 08.06.2016       | 36                  | 52,500,000                       |
| 14      | GE Power                                                     | 22.12.2016       | 8                   | 50,31,000                        |
| 15      | Ingersoll Rand                                               | 13.02.2017       | 6                   | 3,234,854                        |
| 16      | National Hydroelectric Power Corporation (NHPC)              | 09.01.2017       | 14                  | 30,186,000                       |
| 17      | Indian Oil Corporation Limited (IOCL)                        | 08.02.2017       | 12                  | 4,628,064                        |
|         |                                                              |                  | TOTAL               | 848,161,963                      |

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## Annexure-I