Budget 2015: Skill development needs more funds, says NSDC CEO Dilip Chenoy
The budget should make an allocation of Rs 1,000 crore towards outcome-based skill development initiatives, Dilip Chenoy tells TimesJobs.
Updated:
By Apeksha Kaushik, TimesJobs.com Bureau
The Union Budget 2015, to be unveiled on February 28, should provide substantial fiscal and non-fiscal support to skill development to help create jobs, says Dilip Chenoy, MD and CEO of National Skill Development Corporation (NSDC).
"Only 18-20 per cent of our youth is employable post their education. They need outcome-based skill training for employability," Chenoy said in an interview to TimesJobs.
Below are some excerpts from the interview:
TimesJobs: What is your wish list from Budget 2015?
Chenoy: "Budgetary support needs to be provided for four kinds of activities in skill development.
First, for the segment that do not have the ability to pay for skills training, grant-based schemes have to be introduced and continued. Second, for advancement and popularisation of different elements of skills training such as advocacy, certification and assessments. Third, for initial support to create sustainable models of skill development and foruth, to create a first loss default guarantee fund for providing skill loan to trainees.
To create empowerment, instead of pure grants, a voucher-based model of skill development may be used. The skill voucher programme aims to enhance the access of marginalised youth to quality training institutes and meaningful employment by providing them with financial instruments thereby offering an end-to-end solution to the issue of employability.
For this, an allocation of Rs 1,000 crore should be made towards outcome-based skill development initiatives to be routed through the Ministry of Skill Development and Entrepreneurship into the National Skill Development Fund (NSDF).
Given the large pool of entrepreneurs created in the skills domain through mechanism of soft loans and to further encourage the activity, Rs 1,500 crore may be allocated to the National Skill Development Fund (NSDF) for NSDC."
TimesJobs: How do you foresee the impact of Budget 2015 on jobs and skills across industries?
Chenoy: "The impact will depend upon how the budget supports schemes such as Make in India, Digital India, Smart Cities, Clean Ganga and Swachh Bharat Mission. To succeed, these five missions will require a lot of skilled workforce. There should also be greater allocation for different ministries such as Ministry of Defence, towards skill development which could be used through Ministry of Skill Development & Entrepreneurship (MSDE) for training the workforce. I believe there is a critical need for substantial fiscal and non-fiscal support to skill development from the Centre and the states."
The Union Budget 2015, to be unveiled on February 28, should provide substantial fiscal and non-fiscal support to skill development to help create jobs, says Dilip Chenoy, MD and CEO of National Skill Development Corporation (NSDC).
"Only 18-20 per cent of our youth is employable post their education. They need outcome-based skill training for employability," Chenoy said in an interview to TimesJobs.
Below are some excerpts from the interview:
TimesJobs: What is your wish list from Budget 2015?
Chenoy: "Budgetary support needs to be provided for four kinds of activities in skill development.
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First, for the segment that do not have the ability to pay for skills training, grant-based schemes have to be introduced and continued. Second, for advancement and popularisation of different elements of skills training such as advocacy, certification and assessments. Third, for initial support to create sustainable models of skill development and foruth, to create a first loss default guarantee fund for providing skill loan to trainees.
To create empowerment, instead of pure grants, a voucher-based model of skill development may be used. The skill voucher programme aims to enhance the access of marginalised youth to quality training institutes and meaningful employment by providing them with financial instruments thereby offering an end-to-end solution to the issue of employability.
For this, an allocation of Rs 1,000 crore should be made towards outcome-based skill development initiatives to be routed through the Ministry of Skill Development and Entrepreneurship into the National Skill Development Fund (NSDF).
Given the large pool of entrepreneurs created in the skills domain through mechanism of soft loans and to further encourage the activity, Rs 1,500 crore may be allocated to the National Skill Development Fund (NSDF) for NSDC."
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TimesJobs: How do you foresee the impact of Budget 2015 on jobs and skills across industries?
Chenoy: "The impact will depend upon how the budget supports schemes such as Make in India, Digital India, Smart Cities, Clean Ganga and Swachh Bharat Mission. To succeed, these five missions will require a lot of skilled workforce. There should also be greater allocation for different ministries such as Ministry of Defence, towards skill development which could be used through Ministry of Skill Development & Entrepreneurship (MSDE) for training the workforce. I believe there is a critical need for substantial fiscal and non-fiscal support to skill development from the Centre and the states."
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TimesJobs: Which industries will get a push from the budget?
Chenoy: "Prime Minister Narendra Modi's 'Make in India' campaign should be one of the big themes. Various measures, including tax breaks and new schemes, could be announced to push manufacturing growth.
If we need to see double digit growth, we have to be liberal towards manufacturing companies or those willing to invest in manufacturing. Automobile, capital goods, defence and steel industries are also likely to see some positive impact in the Budget.
We also expect more incentive towards job creation under Section 80 JJAA of the Income Tax Act, 1961. The threshold of deduction for the additional wage paid to the new employee should be increased and the benefit should be extended to the services sector to provide greater employment opportunities for the youth."
TimesJobs: How will investment/budget interventions in skills boost employment?
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Chenoy: "Recently, the Minister for Skill Development and Entrepreneurship (I/C) and Parliamentary Affairs, Rajiv Pratap Rudy said the government's aim would be to skill 300 million youth by 2020.
He also said that we require an investment of around Rs 4.2 lakh crore for this. Only 18-20 per cent of our youth is employable post their education. They need outcome-based skill training for employability. We have also found that 30 per cent of the learners categories have the ability to pay and government funding is needed for the remaining 70 per cent."
TimesJobs: How impetus on skill will change the manpower landscape?
Chenoy: "Investing in skilling the workforce will benefit organisations across industries. Vocational education and training will not only make the workforce more productive but also profitable."
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