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Report No. 45 of 2015 - Complaince Audit on National Skill Development Fund and National Skill Development Corporation for the year ended March 2014,Union Government Ministry of Finance and Ministry of Skill Development and Entrepreneurship
Overview
Introduction
National Skill Development Fund (NSDF) and National Skill Development Corporation (NSDC) were created after approval of the Union Cabinet to stimulate and coordinate private sector initiative in the skill development sector. NSDC was formed (31 July 2008) as a “not for profit” public company with limited liability under Section 25 of the Companies Act, 1956 with an equity capital of Rs. 10 crore, of which 51 per cent (Rs. 5.10 crore) and 49 per cent (Rs. 4.90 crore) were subscribed by the private sector and Government of India respectively. It was conceived as a Public Private Partnership (PPP) in the skill development sector. NSDF was incorporated (23 December 2008) as a trust, under the Indian Trusts Act, 1882, by the Department of Economic Affairs (DEA), Ministry of Finance, to act as the receptacle of funds from Government sources, bilateral/ multilateral and other agencies. NSDF received Rs. 3,300.74 crore, as on 31 March 2015, from the government sources.
NSDF was to examine the Annual Work Plan of NSDC and sanction funds against the work plan. Since inception, NSDC had received funds of Rs. 2,362.90 crore upto 31 March 2015 from NSDF for execution of schemes and programmes for skill development.
Government of India vide notification dated 31 July 2014 transferred the work of NSDF and NSDC from DEA to the Ministry of Skill Development, Entrepreneurship, Youth Affairs & Sports and subsequently to a newly created Ministry of Skill Development and Entrepreneurship (MSDE).