Internship Report NSDC

EVALUATION OF APPLICATIONS FOR GRANTS & LOAN ON DRIVERS
TRAINING INSTITUTE PROJECT
A SUMMER PROJECT STUDY SUBMITTED IN PARTIAL

FULFILLMENT FOR THE REQUIREMENT OF THE TWO YEAR
POST GRADUATE DIPLOMA IN MANAGEMENT (2016-18)
NATIONAL SKILL DEVELOPMENT CORPORATION

SUMMER INTERNSHIP REPORT- NSDC
Table of Contents
1. Certificate of Internship .............................................................................................................. 3

2. Acknowledgement ...................................................................................................................... 3
3. Declaration .................................................................................................................................. 5
4. Objectives of the project ............................................................................................................. 6
Executive Summary ................................................................................................................................ 7
Literature survey ..................................................................................................................................... 7
5. Introduction ................................................................................................................................. 9
5.1 Details of organization ............................................................................................................ 9
VISION ............................................................................................................................................. 11
MISSION .......................................................................................................................................... 11
OBJECTIVE ..................................................................................................................................... 11
MILESTONES.................................................................................................................................. 11
5.1.1 Sector Skill Councils ..................................................................................................... 13
5.1.2 Training Partners ........................................................................................................... 16
5.1.3 Project Management Units ............................................................................................ 17
5.1.4 Industry Research Partners............................................................................................ 17
5.1.5 Due Diligence Partner ................................................................................................... 17
5.1.6 Legal Partners ............................................................................................................... 17
5.2 Departments at NSDC:.......................................................................................................... 17
5.3 Hierarchy............................................................................................................................... 18
5.4 Types of Trainings ................................................................................................................ 19
5.5 Funding Systems: .................................................................................................................. 20
NSDC FUNDED ............................................................................................................................... 20
KEY ELEMENTS OF NSDC FUNDED AFFILIATION ................................................................ 21
NSDC NON-FUNDED ..................................................................................................................... 23
KEY ELEMENTS OF NON-FUNDED AFFILIATION ................................................................. 23
MULTI STAGE SELECTION PROCESS ....................................................................................... 25
PMKK- PRADHAN MANTRI KAUSHAL KENDRA ................................................................... 25
6 Driver Training Institute Project ................................................................................................... 26
6.1 Project Introduction .............................................................................................................. 26
6.1.1 About DTI ..................................................................................................................... 26
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6.1.2 Guidelines ..................................................................................................................... 26

6.1.3 Process of Detailing ...................................................................................................... 28
6.1.4 Methodology/Approach for Project .............................................................................. 28
6.2 Evaluation Of Applicant Profiles Received: ......................................................................... 29
6.2.1 Evaluation Matrix ......................................................................................................... 29
6.2.2 MIS and Data Analysis (Excel Attached) ..................................................................... 31
6.2.3 Dashboard and Analysis: ................................................. Error! Bookmark not defined.
6.2.4 Engagement with Corporates ........................................... Error! Bookmark not defined.
6.3 Financial Analysis ................................................................................................................. 34
6.3.1 Theory for credit (excel Attached) ................................................................................ 34
6.3.2 Analysis of Applicants & Shortlisting .......................................................................... 35
6.3.3 Grant/loan/ VGF ........................................................................................................... 41
6.3.4 Monitoring Trained placed candidates .......................................................................... 41
6.3.5 Skill Development Management System (SDMS) ....................................................... 41
6.3.6 Quarterly Funds Utilization Certificates (UC) .............................................................. 41
6.3.7 Business Functions ........................................................................................................ 42
6.3.8 Support Functions ......................................................................................................... 42
6.3.9 Project Cost. .................................................................................................................. 42
7 Conclusion ..................................................................................................................................... 44
8 Results ........................................................................................................................................... 44
9 Managerial Implications- .............................................................................................................. 45
10 Issues in NSDC and Models: .................................................................................................... 45
11 Data Sources ............................................................................................................................. 46
12 References .................................................................................... Error! Bookmark not defined.
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1. Certificate of Internship
2. Acknowledgement
It gives me great pleasure to express my sincere thanks and gratitude to xxx, Member, MIS
& Monitoring, National Skill Development Corporation for his supervision and
encouragement through the course of this project.
I am indebted to my faculty member, xxx, for the help that he has rendered to me at every
step towards completion of this project.
I also take this opportunity to thank my institute and administration for their help during my
tenure at NSDC.
With Regards
PGDM Finance 2016-18
LBSIM
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3. Declaration
I, , Roll No. /2016 have completed my summer internship at National Skill

Development Corporation, New Delhi and have submitted this project report entitled
Evaluation of Applications for grants and loans for DTI Project, towards partial fulfillment of
the requirement for the award of the Post Graduate Diploma in Management 2016-2018.
This Report is the result of my own work, no part of it has earlier comprised any other report,
monograph, dissertation or book.
__________________
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4. Objectives of the project
To Introduce NSDC, its profile and DTI Project

To define procure for acceptance of applications for DTI project
To form a technique, financial valuation technique for evaluation and shortlisting
Field Work and MIS design
To share result and data analysis
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Executive Summary
As a part of my summer training at National Skill Development Corporation (NSDC), I

worked with the MIS and monitoring team with research and analysis at partner level. During
the course of two months my focus area was the ongoing monitoring & MIS consolidation
activities. The objective of the project was to understand the monitoring process at NSDC,
analyze the data shared by partners to evaluate the best business model based on performance
and identify the gaps & issues to streamline the ongoing monitoring process & activities. It
was observed that the since most of the partners were in their growth stage with some being
in introduction phase, the training numbers received from the partners were low. Considering
the growth shown by big partners who had been operational for over a year, the numbers had
increased substantially.
Literature survey
Process innovation means performing business activities in a new way. Process innovation is
generally a discrete initiative and it also implies the use of specific change tools and
technology for enterprise engineering and transformation of business processes (Davenport,
1993). Process benchmarking and business process re-engineering (BPR) have become two
main methodologies used to implement business process improvement and have attracted
much attention in a current fast-changing environment. Leveraging best practice has become
the important factor of process benchmarking and BPR. Accurate knowledge of the gaps
between best practice processes and a company's business processes is essential for the
redesign of business processes (Juan & Yang 2004). In the existing BPR methodologies there
exists a big division in business analysis techniques due to the black and white approach used
in most cases. In some of them, cost is the central issue, in others generic management or the
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successful use of IT. As a result business analysis techniques are directed towards this central
issue ignoring any other means of analysis.
For process benchmarking, most of the participating companies use self-developed methods
rather than established methodologies to capture and compare process data (Poulson 1996).
By comparing and analyzing the core processes in detail, process benchmarking could
provide an insiders view of another companys operation in a way that identifies distinctions
between the practices of the two companies (Watson 1992).
Since there is no standard for business process model comparison, one possible approach is
first to clarify the semantic relationship between model objects and then to analyses the gaps
in processed data and process logic for compared process models. Considering the wide
variety of objects provided by the framework and the different use and meaning of object
names used by different project teams, the semantic relationship between model objects of
compared process models must be studied closely. To this end, related semantic analysis
methods for various model objects should be developed (Juan & Yang 2004).
In BPR, tacit knowledge plays a very important role. In considering its implication for BPR,
three attributes of tacit knowledge merit particular emphasis. First, tacit knowledge, by
definition, is highly personal. It is created by and sourced within single individuals. Thus,
individuals can be expected to have highly personal perspectives on BPR. Second, tacit
knowledge doesn't happen accidentally: it emanates from and evolves out of each individual's
background, experiences and context. Third, although it is essentially a personal
phenomenon, substantial consistency and concurrence is typically evident across the tacit
knowledge of individuals who have shared similar backgrounds, experiences and contexts. It
is for this reason that it is possible to talk of an organization's tacit knowledge, that is, a group
of individuals who share a broadly similar perspective on the world around them including
the merits and limitations of BPR. (Fahey 1998)
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5. Introduction
5.1 Details of organization
The National Skill Development Corporation (NSDC) is a one-of-its-kind, Public Private

Partnership (PPP) model in India, under the Ministry of Skill Development &
Entrepreneurship (MSDE). It aims to promote skill development by catalyzing creation of
large, quality and for-profit vocational institutions.
It is situated at:
Address: Clarion Collection, Shaheed Jeet Singh Marg, Block A, Qutab Institutional Area,
New Delhi, Delhi 110016
It has around 250 employees apart from consultants from other companies like- McKinsey,
EY, KPMG, Grant Thorton.
A not-for-profit company set up by the Ministry of Finance, under Section 25 of the

Companies Act, it has an equity base of Rs.10 crore, of which the Government of India holds
for 49%, while the private sector has the balance 51%.
A Section 25 company is registered under Section 25 of the Companies Act, 1956. These
companies are those which have interest of the public. These can be made by Government,
RBI or group of individuals. This section provides an alternative to those who want to
promote charity without creating a Trust or a Society for the purpose. It allows the formation
of a company, which will exist as a legal entity in its own right, separate from the person
promoting it. The crucial bit, however, is that any company under this section must
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necessarily re-invest any and all income towards promoting the said object or charity. In
essence, unlike a regular company, where owners and shareholders can make profits or
receive dividends, no money gets out of a Section 25 company.
NSDC strives to:
Develop low-cost, high-quality, innovative business models.
Ensure that its funds are largely re-circulating i.e. loan or equity rather than grant.
Create leverage for itself.
NSDC plays three key roles:
Funding and incentivizing: This involves providing financing either as loans, equity or
VGF, providing grants and supporting financial incentives to select private sector initiatives
to improve financial viability through tax breaks, etc. The exact nature of funding (equity,
loan and grant) will depend on the viability or attractiveness of the segment and, to some
extent, the type of player (for-profit private, non-profit industry association or non-profit
NGO).
Enabling support services: A skills development institute requires a number of inputs or

support services such as curriculum, faculty training standards, quality assurance, technology
platforms, and student placement mechanisms and so on. NSDC plays a significant enabling
role in these support services, most importantly in setting up standards and accreditation
systems in partnership with industry associations.
Shaping/creating: In the near-term, the NSDC will proactively seed and provide momentum
for large-scale participation by private players in skill development. NSDC will identify
critical skill groups, develop models for skill development and attract potential private
players and provide support to these efforts.
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VISION
NSDC was set up as part of a national skill development mission to fulfill the growing need
in India for skilled manpower across sectors and narrow the existing gap between the demand
and supply of skills. The then Union Finance Minister Shri Pranab Mukherjee announced the
formation of the NSDC (2008-09 Budget Speech). "There is a compelling need to launch a
world-class skill development programme in a mission mode that will address the challenge
of imparting the skills required by a growing economy. Both the structure and the leadership
of the mission must be such that the programme can be scaled up quickly to cover the whole
country."
MISSION
Upgrade skills to international standards through significant industry involvement and

develop necessary frameworks for standards, curriculum and quality assurance.
Enhance, support and coordinate private sector initiatives for skill development through
appropriate Public-Private Partnership ( PPP ) models; strive for significant operational and
financial involvement from private sector.
Play the role of a market-maker by bringing funds, particularly in sectors where market
mechanisms are ineffective or missing.
Prioritize initiatives that can have a multiplier or catalytic effect as opposed to one-off
impact.
OBJECTIVE
To contribute significantly ( 40 per cent ) to the overall target of skilling/up-skilling 400

million people in India by 2022, mainly by fostering private sector initiatives in skill
development programmes and to provide funding.
MILESTONES
296 NSDC Training partners Funded + Non Funded
9,292 Operational Centre
66.81 Lakh No of Students trained
21.74 Lakh No of Students Placed
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BALANCE SHEET
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NSDC gets its fund from various government schemes and it basically implements these
schemes using the funds and monitors the Training Partners. Even after being a lending
organization it doesnt have a liquidity based presentation of its financials as it does not come
under Reserve Bank of India.
Associates:
NSDC has various associates for different work:
5.1.1 Sector Skill Councils
Sector Skill Councils are set up as autonomous industry-led bodies by NSDC. They create
Occupational Standards and Qualification bodies, develop competency framework, conduct
Train the Trainer Programs, conduct skill gap studies and Assess and Certify trainees on the
curriculum aligned to National Occupational Standards developed by them.
Till date, the NSDC Board has approved proposals for 38 Sector Skill Councils. There are
approximately 450 Corporate Representatives in the Governing Councils of these SSCs. The
list of SSCs is given below.
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Few Of the SSCs are:
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5.1.2 Training Partners
NSDC Training partners are the Firms, NGOs, companies which take the responsibility to
train individuals through the support of NSDC and their own funds and resources. They are
given training and placement targets. TPs set up training centers at various parts of India and
usually in certain priority strata. Procedure for selection as a TP is given later.
Few of the Known TPs are:
a) IL &FS Skills
b) Vivo Health Care
c) ITIs
d) Daksha Skills
e) Foresight Education
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5.1.3 Project Management Units
EY and KPMG are the known Project Management Units in NSDC. Employees (Consultants)
from these companies (in government policies) are deployed in NSDC to work towards
maintenance and formation of guidelines.
5.1.4 Industry Research Partners
McKinsey works as the Industry Research Partner in NSDC to study requirements, new
sectors and workforce required in the same. They work towards developing schemes for the
government so that skills can be added and schemes be made.
5.1.5 Due Diligence Partner
Grant Thorton, Mazars and CRISIL are awarded projects on which specialists from these
companies do background verifications, credit analysis etc.
5.1.6 Legal Partners
Different legal firms are also deployed to manage legalities related to bring TPs on board and
implementing the schemes.
5.2 Departments at NSDC:
1. Project Development: All the new schemes from the ministry and NSDC are
first worked upon in this department and then shared with DD partners for
further verifications. The list of TPs is maintained by them.
2. Monitoring: This department handles all the issues related to working of TP.
Their placements, Training, regulations etc. Fund utilization certificate.
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3. Scheme management: Individual Schemes are monitored by this department

like Udaan, PMKK, PMKVY
4. Other Departments are Finance and Admin
5. HR is outsourced to People Strong
5.3 Hierarchy
The Board of Directors of NSDC comprise of 13 members - 4 from the government and 9
from the private sector.
Representatives from the Government
Secretary, MSDE, GOI: Dr. Krishnan
Principal Secretary, GOVT OF GUJRAT: Dr. Rajiv Gupta
Nominated by the Government
Chairman Janalakshmi: Mr. Ramesh Ramanathan
Representatives from Industry
MD: Mr. Manish Kumar
ASSOCHAM: Mr. G.P. Srivastave
CII: Mr. Mahalingam
CREDAI: Mr. Jitendra Thakker
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5.4 Types of Trainings
Fresh Trainings
Refresher Trainings
QPNOs List: The Qualification Pack National Occupational Standards (NOS) specify the
standard of performance an individual must achieve when carrying out a function in the
workplace, together with the knowledge and understanding they need to meet a standard
consistently.
Each NOS defines one key function in a job role. Each NOS must be a concise and readable
document, usually consisting of no more than five or six pages (some are only one or two). In
their essential form, NOS describe functions, standards of performance and knowledge /
understanding.
The NOS are laid down by employers (through their SSCs). A Qualification Pack (QP) is a
set of NOS aligned to a job role. A QP is available for every job role in each industry sector.
These drive both the creation of curriculum and assessments. Thus, the National Skills
Qualification Framework (NSQF) theoretically makes it possible to drive competency based
training for every job role in industry. It is possible for all current vocational courses, like
MES, ITI Courses, or similar vocational courses in schools, colleges and polytechnics, to be
aligned to job roles at specific NSQF Levels. An ITI Course in Plumbing would say they are
training for plumbers at NSQF Level 3. Similarly, a polytechnic, training in fashion design,
may say it is training for NSQF Level 5 for Garment Cutters.
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Eg:
SDMS: It is the software used by Consultants and TPs to manage and update
placement and training numbers.
5.5 Funding Systems:
NSDC has the following funding systems:
NSDC FUNDED
Catalyze the creation of sustainable and quality skills training institutions across the country.
Support and coordinate private sector initiatives for skill development through appropriate
Public-Private Partnership ( PPP ) models, strive for significant operational and financial
involvement from the private sector
Play the role of a "market-maker" by bringing financing in sectors where market mechanisms
are weak or missing
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Prioritize initiatives that can have a multiplier or catalytic effect on capacity and quality of
skilling in India
The Funding Guidelines provide for a differentiated approach for for-profit entity and not-
for-profit entity
KEY ELEMENTS OF NSDC FUNDED AFFILIATION
Parameter NSDC Funding Guideline
Eligibility Any legal entity including, but not limited, to Company/ Society
/ Trust as per the process and applicable laws and guidelines
What Gets Funded Total investment requirement towards
Training Infrastructure (excluding the acquisition/creation of

immovable);
Working Capital
Interest Rate 6% p.a.
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Principal Moratorium Up to 3 years

Period
Interest Moratorium NIL

Period
Repayment Period 7 years (including moratorium period)
Promoters Contribution Minimum 15% of the investment requirement ( not-for-profit

entities )
Minimum 25% of the investment requirement ( for-profit entities

)
Training Commitment Standard Proposals Corporates Listed Private

in BSE/NSE for Universities,
more than 3 years Engineering
with a credit rating of Colleges, ITI,
A- or above or Polytechnics
foundations/similar
ventures
Training Commitment Standard Proposals Corporates Listed

Private
in BSE/NSE for Universities,

20,000 persons over
more than 3 years Engineering
7 years
with a credit rating of Colleges, ITI,
A- or above or Polytechnics
foundations/similar
5,000 persons
ventures of such
per centre over 7
organisations
years
5,000 persons per
centre over 7 years
Placement Guarantee At least 70%

Commitment
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Collateral First charge on assets of the project
First charge on cash flows of the project
First charge on IP developed under the project
Personal Guarantee/ Corporate Guarantee/ Put-Option on

another Associate Company
Pledge of shares to the tune of minimum 51% of the equity of

the project implementing entity ( for-profit entities )
Pledge letters to be taken ( not-for-profit entities )
Post Dated Cheque
Hard collateral (including but not limited to bank guarantee/

mortgage of immovable property/ lien on fixed deposits etc.)
covering minimum 30% of the loan amount
NSDC NON-FUNDED
NSDC can co-opt reputed entities with established credentials who wish to be a part of the
Skill India and/or Make in India Mission but do not require funding and want to be a
partner. Proposals submitted should be robust and catering to sectors with high growth,
unmet needs and/or unorganized sector. Proposals must be outcome oriented and should
focus on placement in industry, self-employment, and entrepreneurship.
KEY ELEMENTS OF NON-FUNDED AFFILIATION
Parameter NSDC Funding Guideline
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Eligibility Entity with more than 5 years in operation with sustainable growth.
(corporates)
For Entity listed in BSE/NSE with more than 5 years with sustainable
growth and with a credit rating of A- and above, separate TOR and due-
diligence process may be applicable
Not for profit entity having more than 5 years of sustainable growth.
Eligibility (not-
for-profit)
For not for profit entity previously founded by entities like World Bank,
ADB, MSDF, UNDP etc. or foundation/social ventures of large corporates.
For such entities separate TOR, and due-diligence process may be
applicable
Training Minimum of 2,000 over a period of 3 years with placement commitment of

Outcome 70% ( Corporates )
Minimum of 5,000 over a period of 3 years with a placement commitment

of 70% ( not-for-profit )
Approved projects need to adhere to the tenets of NSDC monitoring

system.
Proposal should focus on linkages with industry for training and placement,
livelihoods, self-employment, entrepreneurship or up skilling.
Courses need to be aligned to specific SSC QP/NOS
In Case of achievement of 70% of the committed target the partnership will

be automatically renewed annually
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MULTI STAGE SELECTION PROCESS
PMKK- PRADHAN MANTRI KAUSHAL KENDRA
Vocational training needs to be made aspirational to transform India into the skill capital of
the world. In line with the same, Ministry of Skill Development and Entrepreneurship
(MSDE) intends to establish visible and aspirational model training centres in every district
of the country. NSDC is the implementation agency for the project. These training centres
will be state of the art Model Training Centre (MTCs), called as Pradhan Mantri Kaushal
Kendra ( PMKK ). The model training centres under the PMKK program aim to:
Create benchmark institutions that demonstrate aspirational value for competency based skill
training
Focus on elements of quality, sustainability and connect with stakeholders in skills delivery
process
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6 Driver Training Institute Project
6.1 Project Introduction
6.1.1 About DTI
Ministry of Skill Development (MSDE), together with the Ministry of Road Transport and
Highways (MoRT&H) intends to establish driver training institutes, helping create a pool of
trained drivers who are technically competent, financially sensitive and socially responsible
to enable fast-track transaction and transportation of goods and services.
A model driver training institute calls for high capital investments (3-10 acre land, KM long
track, simulators, vehicles, etc.) and also should be able to achieve the desired ROI on said
investment.
To address the challenges with respect to viability of such ventures and to cover the low
willingness amongst the target demography to pay for such trainings, institutes established
under this partnership shall be provided capital expenditure support in the form of loan and
grant and operating expenditure through grant under Pradhan Mantri Kaushal Vikas Yojana
(PMKVY).
6.1.2 Guidelines
Guidelines for this project have been formed along with the PMUs to Suffice and support the
TPs.
The type of research used is both primary and secondary.
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Locations for such DTIs have been identified from both demand perspective looking at major
industrial clusters, ports, transport hubs, and from supply perspective, looking at districts with
high poverty incidence for driver training and driver requirement
The boundary conditions of the DTI are broadly as follows
Training infrastructure consisting
Land of 3 acres,
built up centre of 11,500 sq ft. (incl 4000 sq. ft. hostel)
And a track of 800 mts.
Lab Equipment consisting of 2 LMVs, 2 HMVs, 1 heavy machine (excavator/crane)
and 1 static HMV and LMV simulator a piece
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6.1.3 Process of Detailing
DTIs are expected to opt for a course mix which meets the local manpower demand. At least
30% of the training capacity is proposed to be dedicated towards HMV driving and/or
Infrastructure equipment operations and at least 30% training capacity should be dedicated
toward driving courses. The course duration of LMV & HMV driving is taken as per the
proposed modalities of amended Motor Vehicles Act and for other courses, duration is
factored as given in QP-NOS.
The process was supported by
Industry Experts: IDTRs by Maruti, Ashok Leyland

ASDC: Automotive Skill Dev Council
Site Visits to existing centers
6.1.4 Methodology/Approach for Project
Activity Remarks
S.no
Publishing of EoI Updated Version issued
1
on 16-Feb
Clarification on EoI
issued on 12-Mar
Last date of response
17-Mar
Sending the DTI Application Total Responses to EoI
2
Form (Detailed Applicant 265
Profile) along with proposal Deadline date for receipt
format of Applicant Profile
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10-Apr
Desk Evaluation Phase - MIS 171 Applicants in Stage

3
creation and Preliminary 2
Analysis Building trackers
containing a snapshot of
all applicants
TP Engagement Phase Desk Evaluation of
4
Active Engagement with all applicants basis a
interested prospective TPs scorecard approach
Conducting/attending regional Engagement already
workshops underway with existing
NSDC TPs and
Corporates (or their
social arms) to roll out
the project
Handholding of all
qualified applicants for
drafting and submission
6.2 Evaluation Of Applicant Profiles Received:
6.2.1 Evaluation Matrix
S.NO. PARTICULARS WEIGHTAGE MARKS
A Training Experience* 30%
1 Number of candidates trained in last 3 years 50
2 Number of candidates placed/self-employed in the last 3 years 25
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3 Sectoral experience of the applicant 25
B Alignment with DTI Objective* 20%
1 Existing Training Infrastructure (Tech Based or Brick & 50

Mortar)
2 Focus of the proposed project on-
Geographies Covered/ Spread 25
3 Linkage between Job Roles executed in the past vs that 25

proposed (in percentage)
C Financial Strength* 30%
1 Average annual turnover of the applicant in last 3 FY 40
2 Net worth (Paid-Up Capital + Reserves) of the applicant 40

in last 3 FY
3 Revenue of the applicant from skill 20

development/training/ancillary activities in last 3 Fys
D Operational Strength* 20%
1 Placement Support (Based on percentage of unique 70

coverage across all sectors proposed)
2 Number of functional centers out of proposed roll-out 30
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6.2.2 MIS and Data Analysis (Excel Attached)
A tracker consisting of the details of all the organisations which applied was formed. The
details were captured and analyzed for MIS:
Management information system (MIS) refers to the processing of information through

computers to manage and support managerial decisions within an organization.
Glimpse of EOI
Any organization/corporate desi

Organizations/corporates having financial and managerial capacity for setting up multiple
DTIs across India within 18 months of commencement of partnership shall be given
ablish the DTIs as Pradhan Mantri
Kaushal Kendra supporting training in multiple related sectors like automotive, heavy
any of the state and central government/ r

funding support provided shall be as per NSDC funding guidelines. Please refer to NSDC
website for NSDC Funding Guidelines
(http://www.nsdcindia.org/sites/default/files/files/NSDCUpdated-Funding-Guidelines.pdf)
Application Procedure:
Documents to be submitted shall include: 1. Applicants Expression of Interest as per

annexure-1 2. A proposal as mentioned in preceding paras. 3. Letter of Registration of the
applicant entity. 4. PAN Copy of applying entity 5. Organizational Contact Details. 6.
Scanned copy of the declaration letter on the correctness of the information provided.
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Applicant Profile Glimpse:
Name:
(Full name as per

Regn/Inc Doc)
Year of Establishment
Applicant Entity
Nature of the Entity
(For eg., Pvt. Ltd.,

Public Ltd., Trust,
Society, etc.)
SECTOR YEARS OF OPERATION IN SECTOR
Operational
Experience Sector 1
Sector 2
Net Worth in the last 3 FYs FY 2016 FY 2015 FY 2014
(as on 31st Mar. in each financial year)
Turnover/Income in the last 3 FYs FY 2016 FY 2015 FY 2014
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(for the period ended 31st Mar. in each FY)
Profit/(Loss) after Tax/Surplus/(Deficit) in FY 2016 FY 2015 FY 2014

the last 3 FYs
(for the period ended 31st Mar. in each FY)
Revenue of the applicant from skill FY 2016 FY 2015 FY 2014

development/training/related activities
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6.3 Financial Analysis
6.3.1 Theory for credit (excel Attached)
The Tandon Committee recommended the introduction of Maximum Permissible Bank

Finance (MPBF) system of lending.
Working Capital Finance:
Norms for Inventory & Receivable:
Main thrust of the system was on assessing the credit needs of a borrower based on holding
of Current Assets.
Suggested inventory norms for various industries (in terms of no. of days) a borrower could
hold inventory of R/M, Stock-in process, FGs and Receivables.
This represented the maximum quantum of Current assets to be taken into account while
determining the permissible bank finance.
Methods of Lending:
Method I:
Current Assets Less Current Liabilities (other than bank borrowings) = Working
Capital Gap 75% Bank Finance 25% Borrowers Funds Minimum
Current Ratio: 1.17: 1
Method II:
Current Assets Less 25% of Current Assets (to be financed from LT funds) Less
Current Liabilities (other than bank borrowings) = Working Capital Gap
Bank Finance Minimum Current Ratio: 1.33: 1
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Method III:
Current Assets Less Core Current Assets (to be financed from LT funds) = Net
Current Assets Less 25% of Net Current Assets (to be financed from LT funds) Less
Current Liabilities (other than bank
Minimum Current Ratio: 1.79: 1
Current Ratio improves as we move from Method I to Method II and then to Method III, while
the MPBF decreases correspondingly.
Turnover Method
Projected Sales for the whole year are assessed - should be reasonable, achievable and falling
in line with the past trend in the industry concerned.
Working Capital requirements to be set at a maximum of 25% of the accepted turnover.

Borrower should contribute 5% of the turnover as his margin. Balance 20% of the Turnover
should be considered as the WC Limit. If the existing margin is more than 5%, then that
margin is to be considered for calculating the credit limit.
Hence, the WC limits may remain underutilized or funds may be diverted if not required by
the business or funds available from banks may fall short of the requirements.
6.3.2 Analysis of Applicants & Shortlisting
The applications are received along with their financial model. This model is studied
according to model prepared by NSDC and then verified:
A snapshot of model:
Page 35
Y1
Key
Category
Parameters
Q1 Q2 Q3 Q4
No. of Centres 1 1 1 1
Operationa
l
Total no. of
Milestones
students trained 240 240 705 705
NSDC Loan
(INR) 25,000,000 - - -
Promoter's
Contribution
(INR) 4,411,765 - - -
Promoter's
Contribution as
% of Total
Funding
Project Cost 15% 0% 0% 0%
Details
Capex Funding
(INR) 16,215,650 - 400,000 580,000
Loss Funding
(INR) (1,177,930) 8,050,930 (5,065,200) 5,037,300
Working
Capital
Funding (INR) 14,374,045 (8,050,930) 4,665,200 (5,617,300)
Page 36
Principal
Moratorium
(No. of years) 3.00
Interest
Moratorium
(No. of years) 0.00
IRR (%) 81%
DSCR ( over
repayment
5.40
period)
Operating
Expenses as %
of Revenue 94% #DIV/0! 51% #DIV/0!
Financial Cumulative
Milestones Cash Balances
(INR) 13,999,045 5,573,115 9,863,315 3,871,015
EBITDA
Margin 6% 0% 49% 0%
EBIT Margin -45% 0% 30% 0%
PAT Margin -52% 0% 26% 0%
ROA -9% -36% 11% -43%
Page 37
ROE -167% 128% -80% 68%
Utilization of Fund:
Y1
Particulars ( All in INR)
Q1 Q2 Q3 Q4
NSDC Loan 25,000,000 - - -
Promoter's Contribution 4,411,765 - - -
Total Sources of Funds 29,411,765 - - -
Capex Funding 16,215,650 - 400,000 580,000
Loss Funding (1,177,930) 8,050,930 (5,065,200) 5,037,300
Working Capital Funding 14,374,045 (8,050,930) 4,665,200 (5,617,300)
Total Uses of Funds 29,411,765 - - -
IRR
Particular
Y1 Y2 Y3 Y4 Y5 Y6 Y7
(INR)
Page 38
(13,144, (4,570,3 27,581, 58,881,9 66,299,3 71,146,4 75,319,3

EBIT 503) 66) 050 18 19 82 92
Tax - - - - - - -
(13,144, (4,570,3 27,581, 58,881,9 66,299,3 71,146,4 75,319,3

EBIT (1-t) 503) 66) 050 18 19 82 92
Add 8,632,8 10,752, 23,287, 5,161,96 3,798,25 2,852,16 2,425,46

Depreciation 03 526 382 6 5 2 9
Less Increase in
Working 2,333,4 1,907,2 5,477,7 (163,339 (1,024,2 (1,188,1 (1,382,6
Capital 00 80 36 ) 46) 87) 84)
Less Capital 16,055, 11,663, 34,190,

Expenditure 650 650 950 - - - -
(22,900, (7,388,7 11,199, 64,207,2 71,121,8 75,186,8 79,127,5

FCFF 750) 70) 746 23 19 30 45
Terminal Value
FCFF +
Page 39
Terminal Value (22,900, (7,388,7 11,199, 64,207,2 71,121,8 75,186,8 79,127,5

750) 70) 746 23 19 30 45
IRR 81%
Particular (INR) Y1 Y2 Y3 Y4 Y5 Y6 Y7
(13,144, (4,570, 27,581, 58,881,9 66,299,3 71,146,4 75,319,3

EBIT 503) 366) 050 18 19 82 92
11,250,0 11,250,0 11,250,0 11,250,0

Loan Repayment - - - 00 00 00 00
Interest 1,500,0 2,100,0 2,700,0 2,446,87 1,771,87 1,096,87

Repayment 00 00 00 5 5 5 421,875
1,500,0 2,100,0 2,700,0 13,696,8 13,021,8 12,346,8 11,671,8

Total Repayment 00 00 00 75 75 75 75
DSCR N/A N/A N/A 4.30 5.09 5.76 6.45
Average DSCR
over repayment
5.40
period
Page 40
6.3.3 Grant/loan/ VGF
On the basis of the study of financial model, it is decided whether the model has to be given
grant, loan or VGF (Viability Gap Funding)
NSDC gives loan only on Training Material and not on land and building. It should usually
be a part of Working Capital.
Working Capital Gap Loan (as discussed before)
Grant: Grants are non-repayable funds or products disbursed by government department,

corporation, foundation or trust, to a recipient, often a nonprofit entity, educational
institution, business or an individual.
Viability Gap Funding (VGF): Means a grant one-time or deferred, provided to support
infrastructure project that are economically justified but fall short of financial viability. The
lack of financial viability usually arises from long gestation periods and the inability to
increase user charges to commercial levels.
6.3.4 Monitoring Trained placed candidates
The students trainings are monitored using SDMS per month by using the numbers of
students trained, placed etc.
6.3.5 Skill Development Management System (SDMS)
A software that connects NSDC, PMU and TPs. All the numbers have to be periodically
updated on this software. This helps in keeping track of NSDC Partners.
6.3.6 Quarterly Funds Utilization Certificates (UC)
Utilization Certificates are issued by TPs to check how much fund has been utilized by them
out of the fund given as tranche.
Page 41
6.3.7 Business Functions
I. Proposal Management The proposals submitted by various organizations for funding

would be required to be updated in this module and will be operated by NSDC to track the
status of the proposals.
II. Agreement/Contract Management All the organisations/entities funded by NSDC and

their agreement/contracts would be required to be updated in this module and this module
will be operated by NSDC to track deliverables of the contracts it enters into with its funded
organisations/entities.
III. Dashboard and Reporting This function will primarily be used for performance
monitoring by National Skill Council and NSDC.
6.3.8 Support Functions
I. Administration Module This function will take care of the activities like setting up of
users, roles, system data, workflow configuration and audit control.
II. Infrastructure & Systems Management This function will take care of administration of
infrastructure elements.
III. Document Management This function will enable search & retrieval of documents.
IV. Data Integration with external entities
a. Partner Integration Each NSDC Partner will upload the performance data into SDMS.
b. All the entities involved in Skill Development initiatives in India will be mandated to
upload performance data into SDMS.
6.3.9 Project Cost.
Benefits and advantages to society
Page 42
Driver training used to be seen as a cost, often forced upon employers when vehicle accident
rates got too high, however times have changed. More and more organisations are choosing
to implement ongoing driver training programmes because they can quickly see the many
benefits that arise to the organization and society at large from this type of initiative.
Reduced fuel spend as a result of more economical driving behaviours
Savings in servicing costs due to less wear and tear
Insurance premium savings
Fewer accidents means less working time lost
Reduced fleet management costs
Compliance with health & safety requirements
Page 43
7 Conclusion
This is a unique project in setting a state of art Driver Training Institute, sustainable project
for skill training and encouraging youth to take up the driver and other related profession,
meeting the expectations of all stakeholders. The project would result in the addressing the
shortage of skilled drivers to the logistics sector and also having a continued availability of
skill trained drivers that would contribute to enhanced productivity. For the candidates this
would provide lateral and upward mobility. The project would set an example for other
logistics players to set up driver training institutes and by addressing the skill training
projects in Logistics sector.
8 Results
1. The DTI project, Infrastructure requirements were studied to launch
2. Applications were reviewed financially and Experience wise.
3. After various level of shortlisting, corporates and Training Partners were selected.
Page 44
9 Managerial Implications-
My report is for both the company and project

Creating Eoi, RFP were learnt
Government Implementation agency working was studied.
Different skills acquired such as Excel, financial modelling and evaluation, MIS etc.
10 Issues in NSDC and Models:
1. Grant based therefore no revenue
2. Many Ghost Branches so the grant/ loan are unutilized
3. Wrong data is shared
4. Issues like Wage loss
5. NPA- many as non- performing assets
Page 45
11 Data Sources
[1] Juan, Y. C., & Ou-Yang, C. C. (2004). Systematic approach for the gap analysis of business
processes. International Journal Of Production Research, 42(7), 13251364.
[2] POULSON, B., (1996), Process benchmarking in retail financial services. Management
Services,June, 1996, 1214.
[3] WATSON, G. H., 1992, The Benchmarking Workbook: Adapting Best Practices for Performance
Improvement (Oregon: Productivity).
[4] Fahey, L. (1998). Business Process Redesign: The Implications of Tacit Knowledge. Knowledge &
Process Management, 5(2), 110-117.
12 Sources
NSDC website
MORTH
MSDE
Page 46

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EVALUATION OF APPLICATIONS FOR GRANTS & LOAN ON DRIVERS

TRAINING INSTITUTE PROJECT

A SUMMER PROJECT STUDY SUBMITTED IN PARTIAL

NATIONAL SKILL DEVELOPMENT CORPORATION

1. Certificate of Internship .............................................................................................................. 3

6.1.2 Guidelines ..................................................................................................................... 26

PGDM Finance 2016-18

I, , Roll No. /2016 have completed my summer internship at National Skill

4. Objectives of the project

To Introduce NSDC, its profile and DTI Project

As a part of my summer training at National Skill Development Corporation (NSDC), I

5.1 Details of organization

The National Skill Development Corporation (NSDC) is a one-of-its-kind, Public Private

A not-for-profit company set up by the Ministry of Finance, under Section 25 of the

NSDC strives to:

Develop low-cost, high-quality, innovative business models.

Create leverage for itself.

NSDC plays three key roles:

Enabling support services: A skills development institute requires a number of inputs or

Upgrade skills to international standards through significant industry involvement and

To contribute significantly ( 40 per cent ) to the overall target of skilling/up-skilling 400

296 NSDC Training partners Funded + Non Funded

9,292 Operational Centre

66.81 Lakh No of Students trained

21.74 Lakh No of Students Placed

NSDC has various associates for different work:

5.1.1 Sector Skill Councils

Few Of the SSCs are:

5.1.2 Training Partners

Few of the Known TPs are:

5.1.3 Project Management Units

5.1.4 Industry Research Partners

5.1.5 Due Diligence Partner

5.1.6 Legal Partners

5.2 Departments at NSDC:

3. Scheme management: Individual Schemes are monitored by this department

4. Other Departments are Finance and Admin

5. HR is outsourced to People Strong

Representatives from the Government

Secretary, MSDE, GOI: Dr. Krishnan

Principal Secretary, GOVT OF GUJRAT: Dr. Rajiv Gupta

Nominated by the Government

Chairman Janalakshmi: Mr. Ramesh Ramanathan

Representatives from Industry

MD: Mr. Manish Kumar

ASSOCHAM: Mr. G.P. Srivastave

CII: Mr. Mahalingam

CREDAI: Mr. Jitendra Thakker

5.4 Types of Trainings

5.5 Funding Systems:

NSDC has the following funding systems:

KEY ELEMENTS OF NSDC FUNDED AFFILIATION

Parameter NSDC Funding Guideline

What Gets Funded Total investment requirement towards

Training Infrastructure (excluding the acquisition/creation of

Interest Rate 6% p.a.

Principal Moratorium Up to 3 years

Interest Moratorium NIL

Repayment Period 7 years (including moratorium period)

Promoters Contribution Minimum 15% of the investment requirement ( not-for-profit

Minimum 25% of the investment requirement ( for-profit entities

Training Commitment Standard Proposals Corporates Listed Private

Training Commitment Standard Proposals Corporates Listed

in BSE/NSE for Universities,