MSDE to Pay Stipend to Apprentices Directly through New DBT Scheme

MSDE has introduced a Direct Beneficiary Transfer (DBT) scheme to provide a stipend of Rs 1500 directly to apprentices

The Ministry of Skill Development and Entrepreneurship (MSDE) announced that National Apprenticeship Promotion Scheme (NAPS) will be a part of Direct Beneficiary Transfer (DBT) scheme, providing direct government benefits to all apprentices. 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.

The Regional Directorates of Skill Development and Entrepreneurship (RDESE) under Directorate General of Training (DGT) are the implementing agencies in their regions in respect of all “Designated Trades” under the Act for all establishments falling under the Central Government jurisdiction. National Skill Development Corporation (NSDC) and CEOs of the Sector Skill Councils are the implementing agencies in their sectors in respect of “Optional Trades” for the establishment under the Central Government jurisdiction.

The MSDE scheme has the following two components

1. Sharing of 25% of prescribed stipend subject to a maximum of Rs 1500/- per month per apprentice with the employers.

2. Sharing of basic training cost up to a maximum of Rs 7,500 per apprentice.

Dharmendra Pradhan, Union Minister of Skill Development and Entrepreneurship, and Education, said that apprenticeship is getting a big boost under Skill India. He said the first set of apprentices have received stipend subsidy in their accounts through DBT under the National Apprenticeship Promotion Scheme. This is not only a boost to apprenticeship but also takes us closer to realising the potential of Skill India, he added.

National Apprenticeship Promotion Scheme (NAPS) was launched on 19 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. As of today, more than 12 lakh apprentices have been engaged with various industries, says a statement from the Government of India.