The Union Cabinet’s decision to amalgamate three schemes under the Skills India Programme (SIP) would drive synergies between the schemes, Ved Mani Tiwari, CEO of National Skill Development Corporation (NSDC) told FE.
He said that if the same team is handling all three schemes, the whole thinking process could change and the outcome would be optimal. “These schemes are currently working in silos.” Tiwari said.
On Friday, the cabinet approved the merger of Pradhan Mantri Kaushal Vikas Yojana 4.0 (PMKVY 4.0), Pradhan Mantri National Apprenticeship Promotion Scheme (PM-NAPS), and Jan Shikshan Sansthan (JSS) scheme into SIP with a total outlay of Rs 8,800 crore over a period of three years – FY23 to FY26. These three schemes are currently operated by the ministry of skill development & entrepreneurship (MSDE) with over 22.7 million beneficiaries till date.
Tiwari said that nearly 70% of the funds have already been utilised, and the institutions like NSDC which are driving these programmes are constantly upgrading courses to meet the industry needs.
“Earlier, the perception around skilling programmes was that they are meant for blue collar jobs such as plumbers, electricians, technicians, etc. In the past 6-7 months, we have introduced a lot of industry-relevant and future skills courses,” Tiwari said on the sidelines of an event organised by edtech startup NxtWave.
In the recent budget, the MSDE was allocated Rs 6,100 crore in FY26, which was 85% higher than the previous financial year. The allocation for SIP was kept at Rs 2,700 crore which was 16% higher than FY25 revised estimates.
Under PMKVY 4.0, the emphasis is on short-term training, including special projects, as well as reskilling and upskilling. Over time, PMKVY has undergone significant change, incorporating on-the-job training (OJT) into short-term skill development programmes to provide trainees with practical exposure and industry experience. At the same time, PM-NAPS has been instrumental in offering OJT training to youth aged 14 to 35.
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