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NSDC funded affiliation - overview

Funding
NSDC Funded Affiliation - Overview
Key elements of NSDC funded
Catalyze the creation of sustainable and quality skills training institutions across the country.
affiliation
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
NSDC Non-Funded Affiliation -
Overview Play the role of a "market-maker" by bringing financing in sectors where market mechanisms are weak or missing

Prioritize initiatives that can have a multiplier or catalytic effect on capacity and quality of skilling in India

Key Elements of Non-Funded The Funding Guidelines provide for a differentiated approach for ‘for-profit’ entity and ‘not-for-profit’ entity
Affiliation

Multi Stage Selection Process

PMKK- Pradhan Mantri Kaushal
Kendra

Funding support under PMKK

Operations Support

Invitation for Proposal

Key Elements of NSDC Funded Affiliation

Parameter NSDC Funding Guideline

Any legal entity including, but not limited, to Company/ Society / Trust as per the process and
Eligibility
applicable laws and guidelines

Total investment requirement towards –

What Gets Funded Training Infrastructure (excluding the acquisition/creation of immovables);

Working Capital

Interest Rate 6% p.a.

Principal Moratorium Period Up to 3 years

 Parameter
Interest Moratorium Period
Repayment Period
Promoters Contribution
Training Commitment
Training Commitment
Placement Guarantee Commitment
NSDC Funding Guideline
NIL
7 years (including moratorium period)
Minimum 15% of the investment requirement ( not-for-profit entities )
Minimum 25% of the investment requirement ( for-profit entities )
Corporates – Listed in BSE/NSE
Private Universities,
for more than 3 years with a
Standard Proposals Engineering Colleges, ITI,
credit rating of A- or above or
Polytechnics
foundations/similar ventures
Corporates – Listed in
BSE/NSE for more than 3
Private Universities,
years with a credit rating of A-
Engineering Colleges,
Standard Proposals or above or
ITI, Polytechnics
foundations/similar ventures
20,000 persons over 7 years
of such organisations 5,000 persons per
centre over 7 years
5,000 persons per centre over
7 years
At least 70%
 Parameter NSDC Funding Guideline

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 (
Collateral
for-profit entities )

Pledge letters to be taken ( not-for-profit entities )

Post Dated Cheques

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

CORPORATE GREEN CHANNEL ROUTE

NSDC under this partnership model shall closely work with the corporate to develop their model of engagement and provide advisory support. The
objective of Corporate Green Channel Route is to provide ease of partnership to corporates who want to be associated with NSDC but do not require
funding or grant support from NSDC. It comes with a unique opportunity to provide corporate and NSDC co-branded skill certification to the
candidate.

Eligibility Criteria:

Any entity having positive net worth at the end of FY 18-19 (or as applicable) and meeting at least any two of the four conditions mentioned below
shall be considered as a Corporate:

Listed on BSE or NSE

The entity should have demonstrated sustainable growth over the years; Average annual turnover of over and above INR 200 crores for last three
financial years

Credit rating of ‘BBB’ category or above from an RBI registered credit agency

Number of employees on direct employment with the company (on-roll employees) should be at least 1,000 as on last reporting date of audited
financials
The corporate should be the lead applicant for the partnership and its primary business shall not be skill development. The lead applicant should have
the ability to exercise management control over the implementing entity which can be an associate/group entity.

Partnership Model:
Salient Features Details

Proposing entity meeting the eligibility criteria shall be provided with an in-principle partnership, basis the
following mandatory documents:
Letter of Intent to become NSDC partner
In-principle Partnership
with-in 72 working hours Demand Draft in favor of NSDC for the processing fee

In cases where the proposing corporate entity identifies an implementing entity other than itself for the project
the implementing entity to receive NSDC partnership status.

The fee shall be realized in two stages:

Application fee: to be paid at the time of submission of the application

Application Fee per proposal (Non-refundable) INR 75,000

Processing fee Approval fee: to be paid at the time of signing of agreement

Approval Fee per proposal* INR 1,25,000

* NIL approval fee for corporate with annual CSR contribution/spend towards skill development of INR 2 crore
or above

Few of the Objectives/ KPIs that could be covered as part of the corporate proposal includes:
Delivery of industry driven trainings through quality infrastructure and trainer capabilities

Creating a Centre of Excellence for Skill Development

Key Objectives/ KPIs/ Delivering Training of Trainers program for their sector of interest
Action Plan
Progressive approach towards the skill eco-system through disruptive ideas, joint ventures, foreign
collaborations etc.

The Project proposal may consider various models available for collaboration to ensure quality and high impact.
 Partnership Period A 2-year partnership is envisaged to execute the identified KPIs or Action Plan

The due-diligence process for the partnership shall be advisory led.

Applicant entity meeting eligibility to get in-principle NSDC Corporate Partnership with-in 72 working hours of
Due-Diligence Process application to NSDC

The final partnership shall be subject to internal approvals post detailed due diligence of the proposal

The Corporate can issue a self-signed certificate or through relevant Sector Skill Council to the candidate towards
successful completion of training for students mobilized under the following channels:

Certification for Training Fee-based model with student paying the fees

completed CSR sponsored fee per trainee

Corporate sponsored training of employees

Letter of Intent to become an NSDC partner along with details of eligibility parameters

List of Documents to be Resolution assigning Authorised Signatory to execute documents on behalf of the entity
submitted
Proposal document (To be jointly developed by NSDC and Corporate)

NSDC Monitoring Guidelines for Non-Funding partnership under point no. 2

(https://nsdcindia.org/sites/default/files/monitoring-sop.pdf)

Applicable Guidelines NSDC Branding & Communication Guidelines

Any other guidelines specific to the scheme/project undertaken

NSDC Non-Funded Affiliation - Overview

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, entrepreneurship.

Key Elements of Non-Funded Affiliation

Parameter NSDC Funding Guideline
 Parameter NSDC Funding Guideline

Entity with more than 5 years in operation with sustainable growth.

Eligibility (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 apllicable

Not for profit entity having more than 5 years of sustainable growth.

For not for profit entity previously funded by entities like World Bank, ADB, MSDF, UNDP etc. or
Eligibility (not-for-profit)
foundation/social ventures of large corporates. For such entities separate TOR, and due-diligence
process may be applicable

Minimum of 2,000 over a period of 3 years with placement commitment of 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-
Training Outcome
employment, entrepreneurship or upskilling.

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

Multi Stage Selection Process

Note:- Active Involvement of Government, Industry Leaders & Leaders from Social Sector for approving projects ensuring interest
of all stakeholders.

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 Centres ( 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

Funding support under PMKK

Capital Expenditure

NSDC will provide concessional loan funding per centre, up to 75% of the project investment, to cover expenditure related to:

Training infrastructure including purchase of plant, machinery & equipment

Training aid and other associated items

Civil work including setting up prefabricated structures and retrofit existing structures

Operations Support

The sustainability of the centres will be assured against dedicated training numbers under Pradhan Mantri Kaushal Vikas Yojna ( PMKVY ) or its
successor schemes (any other scheme under MSDE or NSDC). Each PMKK will be assured a training mandate for three years, under the PMKVY
scheme, as per common norms, subject to capacity and utilization of the centre.

Invitation for Proposal

NSDC invite proposals for funding in several sectors. Here you will find documents and guidelines to be followed to be an NSDC affiliated training
partner.

Join the Skill India Mission by becoming NSDC training partner. To know more about the same

Workshops are organized from every Monday to Friday, 4.30 to 5.30 pm at NSDC office

Call NSDC training helpline number – 92892-00333, available from Monday to Friday between 9 am to 6 pm

Proposals Submission Guidelines

NSDC Funding Guidelines

Non Funding Proposal Guidelines

Notice-Fee Structure for Affiliation

Proposal Submission Docket

 These Technical & Financial templates are required to be submitted with all proposals along with the declaration.

Funding Proposal Docket

Corporate Green Channel Route - Proposal Submission Docket

Non-Funding Proposal Docket

Draft Investment Agreement Template

Draft Revenue Sharing Agreement Template

Draft Loan Template

Draft Agreement Docket

Company

Society & Trust

Non Funding

FAQs

FAQs- Funding, Non Funding, Entrepreneur, Training Institute

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