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Union Budget 2012-13: National Skill Development Fund doubled

In order to strengthen skill development initiative in the
country, the Budget for 2012-13 has doubled allocation under the National Skill
Development Fund (NSDF) and launched a credit guarantee fund for skills
development.

Rs 1, 000 crore has been infused into NSDF raising the
corpus of the fund to Rs 2,500 crore.

“This will allow NSDC to fund more sustainable skills
training initiatives that can benefit millions of youth nationwide,” said
NSDC Chief Executive Officer and Managing Director Dilip Chenoy.

Finance Minister Pranab Mukherjee has also exempted
vocational training institutions from service tax and provided tax benefits to manufacturers
for costs incurred in talent development.

In 2011-12, NSDC approved 26 new projects, doubling the
number of sanctioned projects since 2009 to 52, with a total funding commitment
of Rs 1,205 crore. At the end of 10 years, these projects are expected to train
62 million people.

The Budget has also proposed to provide weighted deduction
of 150% of expenditure incurred on skills development in manufacturing.

“The thrust on skill development in traditional
sectors, including handloom, will ensure that these sectors can improve their
way of operations significantly,” Chenoy said.

“Since skills development is a building block for the
economy, the budget proposal reflects the government’s commitment. This is
vital since in a year almost 12 million people join the country’s labour
market, many of whom are semi-skilled workers who would now get meaningful
work,” said E Balaji, MD & CEO of HR and placement firm Ma Foi
Randstad.

[Source: Economic Times]

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