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Economy
Mahesh

02/07/22 22:21 PM IST

MSDE launches DBT scheme

In News 
  • 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.
New Change 
  • 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.
NAPS Scheme 
  • National Apprenticeship Promotion Scheme (NAPS) was launched on August 19, 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.
  • 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 allows them the opportunity to contribute to the economy even during training. 
Significance 
  • The dream of India becoming the ‘Skill Capital of the World’ seems to be on the path to fruition with the introduction of various apprenticeship reforms aimed at building a skilled manpower.
  • It is envisioned that these schemes will be further scaled up in the coming years and all contracts will be DBT contracts.
Source- PIB 

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