JOIN USKeen to create a skilled manpower of 34 crore by 2022, the government is likely to set up a fund for extending loans for vocational programmes with a subsidised interest and the announcement could be made in the next budget.
The proposal for Credit Guarantee Fund was discussed at a recent meeting of National Skill Development Council chaired by Prime Minister Manmohan Singh, sources said.
The fund will be used for extending loans for vocational courses with suitable interest subsidy, they said.
The move is aimed at encouraging skill development in the country with the government projecting the requirement to be to the tune of 26 crore by 2018 and 34 crore by 2022. Among other proposals discussed was doing away with service tax on skill development bodies. The exemption will help students enrolling in courses like software, retail and fashion pay lesser fee.
Sources said the council also discussed a strong a robust mechanism system to monitor and track trainees at least for a year after they are skilled so as to get a correct feedback about the “appropriateness” of the training imparted.