Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2.0 (2016 – 2020):

Background

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.

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.

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.

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)
Strategy and Approach
  1. The Scheme will provide payouts 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. This Scheme shall be implemented through Public-Private and Public-Public partnerships
  3. 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. 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. Trainings shall be provided only at the approved Centres as defined in clause 4.3 with exception for Special areas
  6. Centres will ensure standardized and approved branding norms as defined in the Branding Guidelines of the scheme
  7. Biometric Devices for capturing student and trainers’ attendance (Aadhaar enabled) shall be mandatory at the PMKVY Centres
  8. The payouts will be affected through bank transfer to the Beneficiaries’ and Training Partners’ accounts as applicable under the Common Norms
  9. Definitions of terms and expansions of acronyms used in this document are listed in Annexure 1
Target Beneficiaries

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

  • Unemployed youth, school/college dropouts, and Possesses an Aadhaar Card and a Bank account
  • 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)
  • Any other criteria as defined by the Sector Skill Councils for the respective job roles
  • In case of corporates or factory premises, candidates cannot be their own employees or daily wagers
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 candidates in first tranche shall be adjusted in subsequent tranches. Candidates may enroll second time in the same/different course in the Scheme but the payout 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.

PMKVY 1.0
  • The PMKVY Scheme will be implemented by the Union Ministry of Skill Development and Entrepreneurship through the National Skill Development Corporation (NSDC).
  • It will provide skills training to youth, including class 10 and 12 drop outs and aims to cover about 24 lakh people.
  • The target for skilling under the scheme will be associated with Union Government’s flagship programmes such as Make in India, Digital India, Swachh Bharat Abhiyan and National Solar Mission.
  • The skill training will involve soft skills, good work ethics, personal grooming, behavioral change for cleanliness etc.
  • Inspection of training under PMKVY will be done by Sector Skill Councils and the respective State Governments.
  • The skill training will be undertaken on the basis of demand assessed on the basis of skill gap studies conducted by the NSDC for the period 2013-17.
  • FUND Allocation- The scheme will be implemented with an outlay of 1, 500 crore rupees.
  • Of the total 1,500 crore rupees, about 1,120 crore rupees will be spent on skill training of 14 lakh youth.