Continuation of Plan scheme "Skill Development Initiative" during XII Plan Period

The Cabinet Committee on Skill Development (CCSD) today approved the proposal for continuation of the Skill Development Initiative Scheme during the XII Plan Period with certain changes as given below:-

i. Per hour per trainee expenditure allowed under the scheme is increased from Rs.15/- to Rs.20/- and Rs.25/- depending upon the cost involved in running the training modules.

ii. 10 percent additional expenditure over and above would be allowed for training modules run in the North Eastern States, Left Wing Extremism (LWE) affected districts, special category States, the Andaman & Nicobar Islands and Lakshadweep.

iii. Expenditure at the rate Rs.300/- per day per candidate for boarding and lodging and upto Rs.5,000/- per candidate for to and fro transportation would be allowed for trainee living in the areas mentioned in para (ii) above while undergoing training outside these areas.

iv. Incentive at the rate Rs.3,000/- would be paid to Vocational Training Providers (VTPs) for ensuring placement of atleast 70 percent per batch at a minimum salary of Rs.6,000/- per month.

v. States would be allowed to utilise upto 4 percent of the expenditure every year towards administrative expenses.

It is hoped that with these changes, it would be possible to train around 25 lakh youth under the scheme during the XII Plan period. This would improve their employability and help industries get a skilled work force. An outlay of Rs.2000 crore has already been kept for this Scheme for the XII Plan period.

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SC/SK