Financial Direct Assistance to Apprentices Through DBT

• 04 Jul 2022

Why in News?

Recently, the Ministry of Skill Development and Entrepreneurship (MSDE) announced that the National Apprenticeship Promotion Plan (NAPS) would be a component of the Direct Benefit Transfer (DBT) scheme, providing all apprentices with direct government benefits.

What is National Apprenticeship Promotion Plan (NAPS)?

• NAPS was introduced in 2016, to promote apprenticeship training nationwide and provide financial support to organisations that offer apprenticeships.
• This helps apprenticeship programmes and brings Skill India's promise closer to realisation.
• The programme aims to encourage employers to take on apprentices and assist them in finding the proper work responsibilities while maximising their potential through in-depth skill development.
• Over 12 lakh apprentices are working in various industries as of right now.
• In the past, employers would pay apprentices the whole fee before requesting reimbursement from the government.
• With the introduction of the DBT programme, the government would immediately deposit its contribution—25 percent of the stipend payable up to Rs. 1500 per month—to apprentices' bank accounts through the National Skill Development Corporation (NSDC).

What are the Initiatives to Promote Apprenticeships?

• Scheme for Higher Education Youth in Apprenticeship and Skills (SHREYAS)
• Skills Strengthening for Industrial Value Enhancement Scheme
• YuWaah Youth Skilling Initiative
• Pradhan Mantri Kaushal Vikas Yojana

What is Direct Benefit Transfer?

• DBT was introduced on 1^st January 2013 with the main aim of improving the Government’s delivery system and redesigning the current procedure in welfare schemes by making the flow of funds and information faster, secure, and reduce the number of frauds.
• It's the process of directly transferring the subsidy amount and making other transfers directly into the account of beneficiaries rather than providing it to government offices.
• JAM i.e. Jan Dhan, Aadhaar and Mobile are DBT enablers and as on date more than 22 crore Jan Dhan Account, more than 100 crore Aadhaar and about 100 crore Mobile connections provide a unique opportunity to implement DBT in all welfare schemes across country including States & UTs.
• DBT will bring efficiency, effectiveness, transparency and accountability in the Government system and infuse confidence of citizen in the governance.
• Use of modern technology and IT tools will realize the dream of Maximum Governance Minimum Government.

UPSC Civil Services Examination Previous Year Question (PYQ)

Q. With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements: (2018)

1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

Which of the statements given above is/are correct?

(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only 
(d) 1, 2 and 3

Ans: (c)

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a flagship scheme for skill training of youth implemented by the Ministry of Skill Development and Entrepreneurship through the National Skill Development Corporation (NSDC). Hence, statement 1 is not correct.
• The individuals with prior learning experience or skills shall be assessed and certified under the Recognition of Prior Learning (RPL) component of the Scheme. RPL aims to align the competencies of the unregulated workforce of the country to the NSQF. Skill training would be based on the National Skill Qualification Framework (NSQF) and industry-led standards. Hence, statement 3 is correct.
• Apart from providing training according to the NSQF, training centers shall also impart training in soft skills, entrepreneurship, financial and digital literacy. Hence, statement 2 is correct. Therefore, option (c) is the correct answer

Source: PIB