Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a government initiative to enhance India's youth's employability by providing skill training. One of the key areas PMKVY significantly impacts is the development of unskilled youth's business acumen. This blog explores how PMKVY is achieving this goal and its impact on the nation's youth.
Even though a business loan gives you quick access to working capital, small business owners can struggle to acquire the necessary soft skills and financial management knowledge. And let's face it, expanding a business requires more than business sense and money. As a result, it may be challenging to create a bright future for our unskilled nation's youth. However, helping them is certainly doable.
The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) program, run by the National Skill Development Corporation and the Ministry of Skill Development & Entrepreneurship (MSDE), was established by the Indian government to make this possible.
Did you know? More than 7.36 lakh candidates have received training under PMKVY 3.0 over the past year.
What is Pradhan Mantri Kaushal Vikas Yojana?
The National Skill Development Execution (NSDE), on behalf of the Ministry of Skill Development and Entrepreneurship, introduced the PMKVY in 2015 to combat youth unemployment.
Its specific goal was to give unemployed individuals, and school dropouts access to industry-level skill training and knowledge that will enable them to upskill and improve their living. This will make it easier for professionals to build prosperous businesses and excel in their fields of endeavour.
In accordance with the recognition of prior learning, individuals will also be evaluated and credentialed based on their previous learning experience and skills.
The PMKVY 4.0 scheme aims to train over eight lakh candidates in the next three years in various skills such as artificial intelligence, data science, robotics, etc. The government has devised ideas like a reward system to encourage employers to hire certified candidates from the PMKVY scheme.
Who is Eligible to Apply for PMKVY?
The programme is open to all Indian citizens who:
- Has an Aadhaar card and a bank account,
- Is unemployed or a school or college dropout,
- Possess a valid ID, such as a voter ID or PAN,
- Any additional requirements as per the SSC's rules for the various applicable job roles,
- College students should refrain from participating in PMKVY because this programme only targets high school and college dropouts. Additionally, candidates are not permitted to be daily wagers or employees when applying for positions at corporations or factories.
What is Pradhan Mantri Kaushal Vikas Yojana 4.0?
Since PMKVY is a crucial component of the Skill India ecosystem, it was essential to revamp the programme with a focus on making the skill ecosystem future-ready. PMKVY 4.0 is the latest version of the scheme, which was launched in 2021 with an allocation of ₹3,000 crore.
With a central objective of making the current skills eco-system more versatile, quick, and geared to address the present challenges and increasing demands through a process overhaul by supporting new financing, digitalisation, etc., PMKVY 4.0 is being realigned to address the difficulties of the past and the aspirations of the future.
What Are the Objectives of PMKVY 4.0?
Between 2022 and 2026, PMKVY 4.0 will be implemented. This will focus on making the programme candidate-centric by building an enabling ecosystem to meet their aspirations and new sectoral needs.
- To support an environment that allows young people to learn skills and select a career path.
- To build a platform for the supply and demand sides by enhancing the current skilling ecosystem's flexibility, speed, and preparedness.
- To restructure processes to balance supply and demand by fostering a technology-driven ecosystem, creative financing, and digitalisation.
Also Read: How to get an MSME loan without collateral?
What Are the Components of PMKVY?
The following is an overview of the components of PMKV:
1. Short-Term Training
You need to look no further than PMKVY to learn skills faster. STT courses typically require between 200 and 600 hours of training (2 to 6 months). The training is provided at accredited and affiliated Training Centers and is aligned with the National Skills Qualification Framework (NSQF).
Dropouts from high school, college, or young Indians without jobs will benefit from the programme. Candidates who are certified successfully will receive help with on-the-job training (OJT).
2. Special Projects
This component is intended for initiatives that necessitate a slight departure from the terms and conditions of short-term training under PMKVY due to unique requirements related to geography, demography, and social groups.
The Special Projects component envisions training in specialised locations and/or facilities of governmental organisations, corporations, or industry bodies. It also trains for specialised job roles not covered by the current National Occupational Standards or Qualification Packs (QPs).
The types of projects to be considered as Special Projects are:
- Initiatives aimed at vulnerable and marginalised groups.
- Targeting challenging geographical regions like tribal areas, Left-wing Extremists (LWE) and aspirational districts.
- Micro business initiatives.
- Educating disadvantaged groups or backward societies.
3. Recognition of Prior Learning
RPL evaluates a person's current skill set, knowledge, and experience acquired through formal or informal learning. Recognition of Prior Learning (RPL), one of the elements of the PMKVY scheme, is where people with prior learning experience or skills are evaluated.
Indian youth can obtain industry-relevant skill certification thanks to RPL. Under the RPL component of the scheme, people with previous educational experiences or skills can register, get evaluated, and receive certification. RPL primarily targets people working in unregulated industries.
Furthermore, RPL with Reskilling and Up-Skilling will be offered as well. RPL training/orientation ranges from 12 to 120 hours, depending on industry needs.
4. Kaushal and Rozgaar Mela
Training Partners hosts the Kaushal and Rozgar Mela every six months, which receives media coverage. Participation of target beneficiaries through a clear mobilisation process is critical to PMKVY. Training Partners must participate in on-ground activities and National Career Service Melas.
5. Placement Assistance
People certified under this programme can find employment opportunities through PMKVY's training partners. Collaborators in training should support entrepreneurs' growth.
If a candidate meets the following requirements, they are placed:
- The candidate receives certification and is positioned within 90 days of certification.
- The applicant has completed three months of regular employment (self- or wage-work).
- According to employment guidelines, candidates hired for wage positions must make at least the state's minimum wage or more.
What Are the Features of RPL?
The following are the features of RPL:
- The RPL program is free of charge.
- Each certified candidate receives ₹500.
- Free three-year accidental insurance for candidates.
- RPL gives applicants a government certification in exchange for their skills.
- People are exposed to the ideas of financial literacy and digital literacy.
How Can PMKVY Assist You in Your Business?
- This program aims to give young people better skills and learning environments. Your expanded skill set will help you launch a highly sought-after business.
- You will receive post-training placement support to aid in starting a new business after successfully completing your course.
- You can apply for a small business loan with the help of the certificate you were given.
- You can apply for a Mudra scheme and receive funding in the range of ₹50,000 to ₹10 lakhs.
PMKVY will help you develop the necessary skill set for today's rapidly evolving world. Students who graduate from high school or college must often be equipped to meet job market demands. Thanks to programmes like PMKVY, young entrepreneurs become more confident, improve their skills, and succeed.
You can even launch your business when you have all the required skills. Then, you would require money to launch your business, and obtaining business loans would enable you to turn your aspirations into reality. Best of luck!