In news– The Ministry of Skill Development and Entrepreneurship (MSDE) has recently announced that NAPS will be a part of Direct Beneficiary Transfer (DBT) scheme, providing direct government benefits to all apprentices.
Key features of the new scheme-
- Earlier companies used to pay apprentices the entire amount and then seek reimbursement from the government.
- With the launch of the DBT scheme, the government will directly transfer its contribution to bank accounts of apprentices through National Skill Development Corporation (NSDC), 25% of the stipend payable up to Rs. 1500/- per month.
- It also gives a boost to the Skill India Mission by creating sustainable skill development strategies in association with the government, businesses, and educational systems.
- It was launched in August 2016 to promote apprenticeship training in the country and to provide financial support to establishments undertaking apprenticeship.
- The program aims to motivate employers to hire apprentices and aid them in discovering the right job roles while maximising their potential through in-depth skill development.
- The scheme has the following two components-
- Sharing of 25% of prescribed stipend subject to a maximum of Rs. 1500/- per month per apprentice with the employers. The stipend support would not be given during the basic training period for fresher apprentices.
- Sharing of basic training cost in respect of apprentices who come directly to apprenticeship training without any formal trade training. Basic training cost will be limited to Rs. 7500/- for a maximum of 500 hours/3 months.
- This scheme covers all categories of apprentices except the Graduate, Technician and Technician (Vocational) apprentices which are covered by the scheme administered by Ministry of Human Resource Development (now Ministry of Education).
- As of today, more than 12 lakh apprentices have been engaged with various industries.
- Regional Directorates of Apprenticeship Training (RDATs) under the control of Directorate General of Training are implementing agencies in their regions for Central Public Sector Undertaking and establishments operating their business in 4 or more States.