The Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved the restructuring of National Skill Development Fund (NSDF) and National Skill Development Corporation (NSDC).
The approval has been given to strengthen governance, implementation and monitoring framework.
The restructuring will also ensure better corporate governance, transparency and accountability in operations of NSDC besides strengthening the oversight role of NSDF.
The approval would lead to the restructuring of the composition of Board of NSDF and the NSDC to strengthen governance, implementation and monitoring framework.
The NSDC and NSDF were set up by the Ministry of Finance and registered in July 2008 and January 2009 respectively for implementing coordinated action for skill development.
The NSDF trust was incorporated to act as a receptacle for financial contributions from Governmental sources, bilateral/multilateral and other agencies. Its main objective is to enhance, stimulate and develop the skills of Indian youth force by various sector-specific programmes.
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The NSDF entered into an Investment Management Agreement (IMA) with NSDC for utilization of its corpus to meet the desired objectives of National Skill Development Mission and encourage skill development in the country.
Provision of supervisory role of the NSDF over NSDC's functions is also included in the IMA between the NSDC and NSDF.