Operational Guidelines for skill development-2017 (In brief)

New Policy on Skill Initiatives:

A structured approach for addressing the skill gap in rural India through demand based, region based and outcome based programmes through the following approaches/Models/Training Partners:

1. NSDC affiliated Training Institutes
2. Government Agencies
4. Corporate Partners
5. NGOs/VAs
6. Skill Loan

Details given below:

The financial support to these training providers will be based on the cost norms fixed by NSDC and notified by 'Ministry of Skill Development and Entrepreneurship' ,GoI vide Gazette Notification dated 15/7/2015 and 20/5/2016

Support for training will be provided in the following sectors/sub sectors,in collaboration with NSDC/Sector Skill Councils and through discussions with NSDC partners in the respective States/Districts. Such proposals are initially to be forwarded by Regional Offices to HO for consideration:

  Textile & Handloom Sector

Hank Dyer, Cone Winder cum Pirn Winder, Warper, Two Shaft Handloom Weaver, Jacquard Weaver-Handloom, Card Puncher (Automatic machine), Textile Designer-Handloom Jacquard, Jacquard Harness Builder, Handloom Entrepreneur.

  Tourism & Hospitality Sector

Assistant Catering Manager, Assistant facility Manager, Bell Boy, Bell Captain, Billing Executive, Boat Jetty Incharge, Bungee Jump Guide, F&B Service Steward, F&B Service Trainee, Front office Executive, Guest House Caretaker, Heritage Tourist Guide, Tour Manager, Tour Vehicle Driver, Street Food Vendor, Room Attendant, Kitchen steward, Laundry Machine Operator, Meet and Greet Officer, Meeting Conference and Event Planner.

  Agriculture Skill Council of India

Agriculture Extension Executive, Agriculture Extension Service Providor, Animal Health Worker, Bamboo Grower, Banana Farmer, Bee keeper, Broiler Farm Worker, Dairy farmer, Dairy worker, Floriculturist, Green House fitter, Mango Grower, Solar Pump Technician, Tractor Operator, Warehouse Worker, Supply Chain Field Assistant.

  Logistics Skill Sector Council

Driver (Commercial Vehicle), Forklift Operator, Sorter in Courier Industry, Warehouse Picker.

  Food industry

Dairy Products Processor, Supervisor: Dairy Products Processing, Quality Assurance Manager, Food Microbiologist, Lab Technician, Store Asst, Fork Lift Operator, Operator - Primary Packaging Machine, Operator - Secondary & Tertiary Packaging Machine, Food Regulatory Affairs Manager, Cold storage Technician.

  Leather Sector Skill Council

Leather Goods and Garments (Cutter, Stitcher, Helper); Footwear (Cutter, Helper, Operator, Product development, CAD-CAM operator, Store Manager).

  Apparels, Made ups & Home Furnishing

Self-employed Tailor, Hand Embroider, Fabric Cutter, Export Assistant, Fashion Designer, Industrial Engineer Executive, Machine maintenance mechanic sewing machine, Garment Cutter, Cutting supervisor, processing supervisor (Dyeing & Printing)..

  Automotive Skill Development Council

Automotive Body Technician, Casting Technician, Commercial Vehicle Driver, Driver Assistant, Machining Technician, Painter, Spares Parts Operation Executive, Welding Technician, Taxi Driver, Showroom Hostess.

ITIs established and managed by State Governments may be partnered with, for providing technical training, provided their byelaws/mandate/rules permit acceptance of financial assistance from agencies like NABARD. Also ITI students may be provided EDP trainings through other training establishments.

Similarly, State handloom/ handicraft corporations and similar State owned corporations/ State Govt. undertakings/ Panchayati Raj Institutions/ DIC/ Government sponsored institutions/ KVKs/ autonomous institutions set up by Govt. etc. would be eligible for NABARDs grant assistance.

(a) Eligibility criteria:

The agencies must have been established or constituted by or under any Central Act or State Act and major share of the paid up capital is held or controlled by the Central /State Government.

(b) Quantum of assistance:

NABARD assistance will be supplementary in nature and in case the agencies have budgetary provision, they may have to utilize the same in the agreed proportion.

NABARD will support Custom made/need based skill training programmes of eligible RUDSETIs/RSETIs

(a) Eligibility criteria for selection of RUDSETI/RSETIs:

i. Institutions rated ‘AA’ by MoRD, GoI.
ii. Institutions rated ‘AA’, ‘AB’, ‘AC’ (Institutions in existence for more than 3 years) & ‘A’, ‘B’,’C’ (Institutions in existence for less than 3 years) in NE States, Andaman & Nicobar Islands, LWE affected/hilly/backward districts having more of SC/ST population.

(b) Eligible Activities:

NABARD would provide grant support to the RUDSETIs/RSETIs to meet the recurring expenditure on the following items, directly related to training:

  Inauguration and valediction
  Expenses on Boarding & Lodging of the trainees
  Raw material for practical/ on the job training
  Stationery/ Course material
  Salary for trainers/ Faculty Members
  Honorarium to Guest Faculty
  Rent for Class Room/ Hostel (Only if rented on commercial lines from other than the sponsors)
Expenses for field visits in respect of such of the programmes.
Monitoring and follow-up

(c) Quantum of Assistance:

NABARD will support 50% of the training cost in respect of the activities specified aboveif the training is sponsored by one bank. If the training is sponsored by two or more banks, the grant assistance will be worked out proportionately.

Partnership with CSR Trusts, reputed corporates for taking up skill development activities in non-farm sectorwhere settlement rate of atleast 60% is assured or where the corporates can absorb them.

Good working NGOs,Voluntary organisations and similar such agencies may be provided grant assistance for providing training through training institutes set up by them for organising training for SHG groups/rural youth/school drop outs etc.

The support, in the form ofgrant (towards recurring expenditure only ) will be provided only if the organization has established/set up training institute with good infrastructural facilities and assurance of placement/settlement rate of atleast 60% is assured.

(a) Eligibility criteria for NGOs/Trusts/Voluntary Agencies:

(i) Voluntary agencies, NGOs, trusts with proven track record.
(ii) Should be a legal entity.
(iii) The agency should have been working in rural areas/semi urban areas for atleast three years.
(iv) It should not discriminate on the basis of religion, caste, sex, race etc.
(v) Its office bearers should not be the office bearers of any political party and /or elected member of any legislative body.
(vi) NGOs debarred by State/Central Government and other agencies will not be eligible for support from NABARD.
(vii) The grant exposure norms as prescribed by NABARD will be followed.
(viii) Rating of NGOs as prescribed NABARD.NGOs scoring less than 60% marks will not be eligible for grant support. In case of North East region, the NGOs scoring less than 50% will not be eligible for grant support.

NABARD will associate with Tier I (having good infrastructural facilities)partners identified by Regional Officesin emerging areas of skilling viz. hospitality, women drivers,housekeeping, day-care etc.

NABARD had piloted a loan based project through PARFI (PANIIT Alumni Reach for India ) for providing training to 5659 rural youth in LWE areas with 100% placement.

Financial assistance will be given for similar models if implemented through competent agencies. In such cases NABARD would provide grant assistance to one of the subsidiaries of NABARD which in turn would provide loan to trainees, to be recovered after they get employed .

The details of the pilot project are given below:


A loan based project of Rs.4.76 crore was sanctioned to “PANIIT Alumni Reach for India”(PARFI), a not for profit, section 25 social enterprise for setting up 20 gurukuls, aimed at skill building and assured placement for the school dropouts from very poor rural households in 9 states in the construction activities like masonary, bar bending, fork lifting, plumbing, air conditioning, electrical wiring, heavy vehicle driving, catering etc.

The project has been assisted through grant assistance of Rs.60.00 lakh towards organizational cost, Rs. 60.00 lakh towards start-up expenses for setting up 20 Gurukuls and Revolving Fund Assistance of Rs. 356.00 lakh). RFA of Rs. 193.00 lakh has been released so far.

The agency has already set-up 20 gurukul units as part of the pilot, 7 in Jharkhand, 5 in Tamil Nadu, 2 each in Rajasthan and Bihar, and one each in Chhattisgarh, Odisha, West Bengal and Maharashtraall of which are targeted to school drop-outs, poor youth from naxalite affected areas.

As part of the pilot project, 5659 trainees have been trained in 237 batches with 100% placement rate (including self-employment especially in driving, catering).

Based on the success of the PANIIT model, it was decided during 2015-16 to institutionalize the project through sanction of grant assistance of Rs.5 crore to NABFINS (a subsidiary of NABARD) for extending skill loans through Gurukuls set up by PARFI. Grant assistance of Rs. 20 lakhs has been sanctioned to PANIIT to meet their management expenses and opening of new Gurukul Centres.

II.Sanction/Release of funds-General Instructions

Sanction of proposals may be made at RO level, by Project Sanctioning Committee set up at RO and within the existing delegation of powers. In case of release of funds for claims made by RUDSETIs/RSETIs, the amount will be released only after completion of the programme on quarterly basis. In case of other agencies, the amount may be released based on the terms and conditions of the sanction letter.

All releases will be made against receipt of proper documents from the concerned agencies/Institute.

Micro Enterprise Development Programme (MEDPs)

  • NABARD since 2006 has been supporting need-based skill development programmes (MEDPs) for matured SHGs
  • MEDPs are on-location skill development training programmes which attempt to bridge the skill deficits or facilitates optimization of production activities already pursued by the SHG members
  • Grant is provided to eligible training institutions and SHPIs to provide skill development training in farm/off-farm/service sector activities leading to establishment of micro enterprises either on individual basis or on group basis
  • Over the years around 4.68 Lakh SHG members have been covered through 16,406 MEDPs

Livelihood and Enterprise Development Programmes (LEDPs)

  • Livelihood and Enterprise Development Programme (LEDP) was launched in December 2015 to Skill create opportunities of sustainable livelihoods among SHG members attain optimum benefit out of skill upgradation
  • It envisages conduct of livelihood promotion programmes in clusters.
  • There is provision for intensive training for skill building, refresher training, backward-forward linkages and handholding & escort supports.
  • It also encompasses the complete value chain and offers end-to-end solution to the SHG members. It is to be implemented on a project basis covering 15 to 30 SHGs in a cluster of contiguous villages where from SHG members may be selected.
  • The skill upgradation training is provided in batches of 25-30 members and covers agri & allied activities as well as rural off-farm sector activities.
  • NABARD will provide grant support for skill upgradation programmes, establishment of demonstration unit and need based critical infrastructure.
  • LEDP has been mainstreamed in May 2017. Cummulatively 15,382 SHG members has been supported through 324 LEDPs upto 31 March 2018.
MEDP Checklist   Master Circular on Skill and Livelihood Development & Enhancement Programme for SHG members