Government links payments to skill centres with jobs

New Delhi: The Skill Development and Entrepreneurship Ministry has linked payments to skill training providers to placement and retention of candidates, a shift aimed at ensuring employment generation and enhanced incomes for the candidates.

The ministry will launch a ₹530-crore Skills Outcome Fund to incentivise skill training providers while increasing their accountability towards each trained candidate, said officials. The move is expected to help about 200,000 youths from low-income households secure quality employment opportunities and improved incomes, a senior government official said, adding, "The initiative represents a significant evolution in the skilling ecosystem by shifting the focus of financing from training activities to verified livelihood outcomes."

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The National Skill Development Corporation, under the ministry, will set up a public-private financing platform that will aggregate grant capital from government, philanthropic organisations, corporate social responsibility contributors and development partners into a common outcomes-focused fund.

Under the programme, candidates aged 18-40 years from low-income households, particularly those who are not in employment, education or training, including school and college dropouts, youths with undergraduate education or below, and individuals from marginalised communities, aspirational districts and priority states, will be given priority, with a target of about 50% female participation.

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The plan is to focus on high-demand sectors and occupations that offer sustainable livelihoods and career progression with at least 40% of training focused on future-oriented and emerging job roles, while the remaining will target sectors with strong employer demand and potential for aspirational wages.

The government believes institutionalising outcome-based financing will help prepare a workforce equipped for emerging economic opportunities, prioritise job roles that offer strong employment prospects and career progression, and improve the earning potential of the candidates.

Besides, it will encourage deeper collaboration between employers and training providers to ensure curricula, skill standards and training delivery are aligned with evolving labour market requirements.