NSDC in JV with Bharti Group to train 1.15 cr youth

The National Skill Development Corporation today entered into an agreement for forming a joint venture with Bharti Enterprises' associate company Centum Learning, which aims to provide training to 1.15 crore youths by 2022.

"We have signed a memorandum of agreement with Centum for training 1.15 crore people in 12 years. The investment agreement was signed today," NSDC Managing Director and Chief Executive Officer Dilip Chenoy told reporters here.

The agreement was signed in the presence of Finance Minister Pranab Mukherjee. The JV, to be christened as Workskill Ltd, will be formalised within 60 days. While NSDC will hold 73 per cent stake in the company, rest 27 per cent will be with Centum.

NSDC will put Rs 13 crore for the project, a combination of equity and loan. The JV expects to open 383 training centres.

"We have fixed target to train over 1.15 crore rural and urban youngsters within next 12 years. In the first phase, Punjab, Orissa, Assam and Madhya Pradesh will be covered," Bharti Enterprises Vice Chairman and Managing Director Rakesh Bharti Mittal said.

He said the JV will tie-up with state governments for undertaking training projects.

"Our focus will be in the services sector including telecom, retail, hospitality, health insurance and automobile," Mittal said.

This is the first JV partnership signed by NSDC since its inception last year.

NSDC, formed in 2009, is a joint venture between the government and industrial associations for developing skilled workers. It seeks to train at least 1.2 lakh people this fiscal, the first full year of its operation.

NSDC has a mandate to train 1.5 million people by 2022 in 21-focus sectors, identified by the government, through funding of training ventures of profit and not-for-profit organisations.

The body was set up under the Centre's 11th Five-Year Plan with the objective of creating a pool of skilled people in line with the requirement of the industry, trade and service sectors.

It had received seed capital of Rs 1,000 crore from the government at the time of formation.

Asked about the progress in the last one year and future plans, Chenoy said: "We have started with little steps and it will take about two years for things to pick up fully. So this year we are looking at around 1.2 lakh youths for training."

NSDC today also released the second tranche of funding for another project-- I-Skill -- which is being conducted in association with Red Hat Investments.

"Our target is to train 7.45 lakh youngsters over 10 years in agriculture related fields, as part of the Rs 18 crore I-Skill project. This will involve opening 150 centres countrywide," Chenoy said.