Govt launches DBT scheme to support apprenticeship scheme
05 Jul 2022
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The ministry of skill development and entrepreneurship (MSDE) on Saturday announced a Direct Beneficiary Transfer (DBT) scheme, providing direct government benefits to all apprentices under the National Apprenticeship Promotion Scheme (NAPS).
Until now, 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 per cent of the stipend payable up to Rs1,500 per month.
Lauding the initiative, union minister of skill development and entrepreneurship, and education, Dharmendra Pradhan, said the apprenticeship programme 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.
To skill, reskill and upskill young India, increase per capita economic production, and support national missions, it is imperative to turn apprenticeship into a participatory movement. It not only exposes candidates to real-time industrial environments but provides them the opportunity to contribute to the economy even during training. It also gives a boost to the Skill India mission by creating sustainable skill development strategies in association with the government, businesses, and educational systems. MSDE’s objective is to give further boost to youth's employability through such sustainable model of skill development and help realise Prime Minister Narendra Modi’s vision of Aatmanirbhar Bharat.
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 programme 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 1.2 million apprentices have been engaged with various industries.
It is envisioned that these schemes will be further scaled up in the coming years and all contracts will be DBT contracts.
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