MSDE Launches DBT Scheme to Provide Direct Monetary Assistance to Apprentices

Ministry of Skill Development and Entrepreneurship (MSDE) announced today that the National Apprenticeship Promotion Scheme (NAPS) will be included in the Direct Beneficiary Transfer (DBT) scheme, which will provide direct government benefits to all apprentices. Previously, companies would pay apprentices the full amount and then seek reimbursement from the government.

With the launch of the DBT scheme, the government will directly transfer 25% of the stipend payable up to Rs. 1500/- per month to apprentices' bank accounts via the National Skill Development Corporation (NSDC).

Union Minister of Skill Development and Entrepreneurship, and Education, Dharmendra Pradhan, lauded the initiative, saying that apprenticeship is getting a big boost under Skill India. He stated that the first batch of apprentices had stipend subsidies deposited into their accounts through DBT under the National Apprenticeship Promotion Scheme. This not only strengthens apprenticeship but also brings us closer to realizing the full potential of Skill India.

It is critical to turn an apprenticeship into a participatory movement in order to skill, reskill, and upskill young India, increase per capita economic production, and support national missions. It not only exposes candidates to real-world industrial environments but also allows them to contribute to the economy while still in training. It also helps the Skill India Mission by developing long-term skill development strategies in collaboration with the government, businesses, and educational systems.

MSDE's goal is to help realize Prime Minister Narendra Modi's vision of Aatmanirbhar Bharat by boosting youth employability through such a sustainable model of skill development.

On August 19, 2016, the National Apprenticeship Promotion Scheme (NAPS) was launched to promote apprenticeship training in the country and to provide financial support to establishments pursuing apprenticeships. The program's goal is to encourage employers to hire apprentices and help them find the right job roles while also maximizing their potential through in-depth skill development. More than 12 lakh apprentices are currently working in various industries.

The dream of India becoming the "Skill Capital of the World" appears to be coming true with the implementation of various apprenticeship reforms aimed at developing skilled labour. These schemes are expected to be expanded in the coming years, with all contracts being DBT contracts.