In this article, Leepakshi Rajpaal discusses NGOs that are eligible for funding from NSDC and what is the procedure for getting the fund.
Ever wondered about opening a Non-Governmental Organisation. You must be wondering where to get the funding from? And which kind of a Ngo will be eligible for funding. This blog will tell you more about it and will also explain the sectors in which the funding is available.
The National Skill Development Corporation is a section 8 company of the Companies Act 2013. It has been set up under the programme initiative of the Prime Minister’s National Council on skill development with the primary mandate of enhancing, supporting and coordinating private sector initiatives for skill development. In the national target to skill 500 million people in India by 2022, NSDC, through fostering and motivating the private sectors to initiate, and aims to meet the 30% of the total target. NSDC is an institution which provides for the funding to the NGO’s and provides guidelines as to who will be eligible for the funding.
The basic question that arises is as to what are the objectives that the NSDC funds or what are the types of NGO’s or businesses that are eligible for funding from the NSDC? Let’s have a look at it and boost our knowledge with it.
NSDC Funding Guidelines
These guidelines are those guidelines which can be helpful before approaching the NSDC. These are in existence so that everyone knows the reason for the funding and based on which the funding will be given. These funding guidelines are aligned with the philosophy that the business plans and viabilities thereof will be different for the ‘for-profit’ entity and ‘not for profit’ entities.
- NSDC assistance shall be sanctioned to any form of the legal entity including but not limited to Company/Society/Trust as per the process and the applicable laws and guidelines.
- Such legal entity shall have a positive net worth.
- In case of a newly incorporated entity, the positive net worth and the financial viability for the implementation of the project aimed at skill development shall be duly evaluated by the Due Diligence Partners and the committees and shall be considered by the board of NSDC on a case to case basis.
- The project cost/investment requirement for the purpose of this section shall mean the total funds required for implementing the project in the initial three years.
Procedure For Applying for NSDC Funding
- If you want to apply for NSDC funding, if the applicant proposes to apply as a group of entities, coming together to implement the Proposal under an existing binding agreement in the form of a Consortium Agreement.
- Such agreement should contain all the roles and responsibilities of all the individual members and their inter-se relationship, particularly with reference to the financial, technical and operating obligations of the individual members for the proposal.
- Such agreement should also clearly specify one member as the ‘Lead Member’, who shall be responsible for the execution of the proposal and respective obligations as may be agreed between NSDC and members, who shall issue a power of attorney signed by all the members of the consortium in favour of the Lead member to act for and on behalf of all the members of the consortium.
- Such agreement should be a minimum for a period of five years or till the proposed project is executed, whichever is later
- Such agreement should also mention that all the members shall be jointly and severally liable for the execution of the proposal in accordance with the terms and conditions of the agreement as may be executed by NSDC.
- The lead member of the consortium shall be the single point of contact for NSDC with relation to the project execution, monitoring and any matter connected therewith.
- A copy of the agreement is required to be submitted along with the proposal, failing which the proposal shall be considered incomplete.
- Such members of the consortium may also enter into a joint venture agreement to execute the proposal incorporating the above-mentioned terms and in all circumstances, the members forming the joint venture shall remain jointly and severally liable for the execution of the proposal in accordance with the terms and conditions of the agreement(s) as may be executed with NSDC.
- Such agreement and joint venture shall form an integral part of the transaction documents with NSDC.
- All the proposals that are submitted to NSDC shall become the property of NSDC, which shall not be liable to be returned to the proposer. NSDC would, however, maintain the confidentiality of the information contained in the proposals. NSDC would be entitled to share the proposals and the information contained therein with its advisors, consultants, lawyers etc. and as may otherwise be required to be disclosed under law.
- NSDC also has the power to reject any proposal without giving any reason.
NGO’s that are eligible for Funding from NSDC
Automobile Industry or Auto Component Industry
The NSDC provides that the automobile industry or the auto component industry is eligible for funding but the funding will be available for particularly those areas of the automobile where there is a skill gap. Therefore, machinist, welders, operators, painters, drivers, sales, servicing, repair, financial services sales, insurers/values etc. are the parts of this industry where there is a skill gap and there is a dire need of funding, and that the NSDC will fund. The reason for these parts of the industry to be chosen is that the NSDC funds only where there is a skill gap and these fields are in compliance with the requirements of the NSDC for Funding.
The NSDC provides for funding even for the Electronics hardware sector, why because of parts of electronics such as computers, telecoms, and consumer electronics manufacturing and sales, servicing or after sales and other support goods of electronic goods still lag behind in the skill. Therefore, they become eligible for funding from NSDC.
Textiles and Garments
The NSDC provides for funding even for the textile and the garment NGO’s, therefore, power loom operators, apparel manufacturing, fashion designing and the Q and A’s, the knitwear manufacturing and sewing machine operators are the fields that require a better skill involvement and therefore, NSDC can fulfil the gaps by providing for funding.
The NSDC provides for the funding in the leather industry as well especially in the fields of tanning, cutting, clicking, stitching, lasting, finishing of leather etc.Therefore, for our country to prosper and hone skills in these fields, the NSDC gives an opportunity to these sectors through their funding scheme.
Chemicals and Pharmaceuticals
Medicines and other chemicals are the need of the hour for the betterment of the pharmaceutical industry. Therefore, certain specific fields that require more of skill engagement are the Industrial and chemical manufacturing, process attendant, manufacturing assistant, lab attendant, equipment operator, sales, pharmaceutical operators and sales. Therefore NSDC specifically focusses on providing skills to these sectors.
Gems and Jewellery
One of the most obvious requirements of skills is involved in the gems and the jewellery industry. Therefore NSDC says that the jewellery fabrication, grading, faceting, polishing, cutting etc. are the few fields that require the improvisation of skills and therefore funds them.
Building and Construction
Another upcoming services of the building and construction industry are the ones that require the presence of the skill in its best form, because people prefer luxurious stay and therefore the NSDC focusses on the skill development in the field of crane operators, electricians, welders, masons, plumbers, carpenters, painters etc. who require the skill to be implanted so as to better and efficient outcome of the same.
Food processing is the industry, which is blooming dominantly and therefore, the quality of the food should be up to the mark with the FSSI standards. NSDC for the enhancement in the sector provides funding for the operators/workers, packaging and assembly line workers, skill specific to food grain milling, bakery, dairy products, meat and poultry processing, fish processing, fruit and vegetables and edible oils. So, these fields, in particular, have to be good without an option and for them to be of an upgraded quality, the skill management, and the skill escalation is necessary, therefore NSDC motivates funding in this sector.
Handlooms and Handicrafts
This sector particularly focusses on the manufacturing and weaving of the handlooms and the handicraft products. India has been famous for its handicrafts and handlooms ever since the time immemorial, and therefore, to maintain the piousness of the sector, the NSDC provides for funding for the resident skill artisans, who produce beautifully handcrafted material.
Building Hardware and Construction Material
When we talk about the present generation, what is the most expensive and precious thing that one may possess, it is a home. Today, I personally crave and work for a house that fulfills the need of my family. So, in a case where the youth works to achieve realistically high standards of living, skill is required in building the hardware and construction material, specifically in the cement mining, blending, OHS, process compliance, machine operation, PLC etc, and also the steel mining, process compliance, crane operation, machine operation, and maintenance. Apart from this certain construction material such as manufacturing equipment operation, maintenance, after-sales support, crane or aerial ropeway operation requires skill for which the NSDC extends its funding to.
IT or Software Services
One of the most basic needs of today also include internet and other IT related things, and one of the most important facts related to these services is that not everyone is skilled enough to operate them, therefore in order to produce skill in the people interested, NSDC provides for funding in the field of software engineering, maintenance and application development, end to end solutions, infrastructure management, testing etc.
ITES or BPO Services
One of the most rising industry that the youth is bending towards is the BPO industry, and people are going haywire over it. NSDC funds an NGO if it is an ITES-BPO, KPO in nature and specific legal, medical, STM, analytics and research field because they cannot be performed without skill.
Tourism Hospitality and Travel
When it comes to tourism and travel industry, any NGO or a business dealing with the skill specialization of the front office staff, F&B services and kitchen and housekeeping staff, ticketing and sales department, tour guides of the aforementioned industry is eligible for funding from NSDC.
Transportation and Logistics
Another important sector of the country is the transportation and logistics because anywhere you want to go, you require a transportation and logistics facility and therefore skill involvement in this industry is of utmost importance. Trained truck drivers, warehousing operations such as the loading supervisors, warehouse managers, warehouse supervisors, pilots, aircraft maintenance, air traffic control, instructors, safety, and security staff, are the people who are required to be efficient and strong in their skills, therefore NSDC funds the businesses where the business is of engaging people in a skill-based job.
Organised retail and wholesale is one of the fastest growing industry because of so many reasons of industrialization, globalization, privatization, and westernization. In such a situation our people may not have the skill of shop floor executives, back store operations and merchandising, therefore NSDC looks into this matter and ensures that there is skill involved in these functions as well.
Real estate Services
Real estate services also require skill training and skill management especially in the fields of the front office coordinator and the client management techniques etc. Therefore NSDC funds these businesses which are engaged in the boom of the skill production from the real estate sector.
The field of media and entertainment is at its peak right now, like who does not want to go for a movie or a show. The point is that these movies and the entertainment shows cannot be created without the skill that is required in its production and other skill management teams. Therefore, in cases of Cinematographers, Editing, Scriptwriters, Artists, sound designers/ Editors Animation Pre Production, Animators, game designers, game developers, radio jockeys, digital camera photography and videography, they require skill to be efficient and qualified, therefore NSDC promotes the funding of such an industry.
This sector is one of the most important as far as the requirement of the skill is concerned. This is because no one can treat you and give you medicines just like that without being a doctor. Therefore NSDC provides funding for the doctors, nurses, technician and paramedics which help in the efficient and able functioning of this industry.
Banking, Insurance and Finance Industry
In an industry of the banking, finance, and insurance, where the economy of the country is based, skilled and efficient functioning of the staff is of utmost importance. Therefore, in case of financial intermediaries including the direct selling agents, banking and insurance including the agents, NBFC and mutual funds are the fields where the NSDC grants the funding.
Educational and Skill Development Services
As a very basic point all of these requirements of the above will not be possible without the education at the basic level, therefore all the professionals involved in the skill development practice, i.e. the school teachers, teachers in the higher education, trainers for technical and vocational training especially modular skills training are the ones which are eligible for the funding from the NSDC.
Unorganised Informal Sector and Unorganised Informal Employment
This is another field of utmost importance and the unorganized sector consists of all the unincorporated private enterprises owned by the individuals or households engaged in the sale and production of goods and services operated on the proprietary or partnership basis and with less than ten total workers. Whereas in the unorganized employment, unorganized workers consist of those working in the unorganized enterprises or households, executing regular workers with social benefits, and the workers in the formal sector without any employment or social security benefits provided by the employers.
It is another sector of primary importance and the skill requirement in this field is of grave nature, therefore NSDC funds the business which require the skilled architect designers, draftsman, supervisor, foreman, surveyor, mason, carpenter, plumber, electrician, bar bender or binder, blacksmith, welder, machine operator, machine driver, painter, glazier, fitter, erection gang, engineer, grinder, radiographer, rigger, gas cutter, storekeeper etc. where the involvement of skill is required.
Other Sources of Funding Available for the Non-Governmental Organisation In India
Apart from the NSDC funding, there are other sources too from which the various NGO’s of our country can get funding. They are mentioned below:-
- Arghyam Foundation for groundwater and Sanitation Projects in India
This is one of the five organizations that offer to fund to the NGO’s and scholarships in addition to the funding. It provides funding to those who work for the betterment of the groundwater facilities and supports the sustainable water management towards meeting the basic water needs of the citizens, especially those from the vulnerable communities. Its activities are contextualized around the broader issues of the water sector, i.e. the availability water, agricultural requirements, industrial and environmental aspects with a focus on the domestic water. The mission of this funding is to improve the access to clean water and sanitation by fostering partnership and networks of practice that includes individuals, non-governmental organizations, governments, and research and academic organizations.
- Paul Hamlyn Foundation’s India Open Grants Fund to NGOs Working in India
This organization is a UK based grant-making organization and supports NGOs all over the world with disadvantaged communities, helping them access the basic needs such as health, education, clothing, food and shelter needs. Grants are generally given to NGOs who find it difficult to raise funds from other sources. So, their main area of focus becomes the basic requirements of day to day life including food, clothing, shelter, and education.
- Asian foundation Grants: Funding Various Issues Across Asia
This organization is a non-profit international development organization committed to improving lives across a dynamic and developing Asia. the foundation educates the women to raise themselves for their rights, safety, and personal health and protects the basic rights of women to counter the human trafficking, fight gender-based violence, increase political participation and strengthen legal systems. It also reduces violence through peace and building efforts in some of the most entrenched conflict zones by conducting empirical surveys.
The foundation’s peace programs support local initiatives in the following areas
- Peacebuilding in Asia
- Governance in Fragile Conditions
- Security and Conflict Mitigation
- Aid Policy and Practice in Fragile and Conflict-Affected Areas
- Narotam Sekhsaria Foundation Grants to NGOs working on Various Issues in India
This organization is committed to supporting worthy initiatives that drive constructive social and individual development. With a focus on the quality of life for those at the edge of the society, the foundation works with philanthropic and charitable organizations, as well as government and private enterprises. the main areas on which it works is health, education, livelihood, art and culture and governance.
- The Coca-Cola India Foundation Grants For Sustainable Development
This foundation actually works towards achieving the development goal of the sustainable development or the one which is sustainable in nature. The coca cola India foundation through its grants contributes to a strong and resolute India enabling the common man to better his or her life. the foundation is committed to sustainable development and inclusive growth by focussing on issues relating to water, the environment, healthy living and social advance. The foundation seeks to ensure project execution, maintenance, and sustainability through the active involvement and direct participation of the beneficiary community at a grass-roots level. The areas of focus are water sustainability, climate control, environment, healthy living and inclusive social development.
- The Vijay Amritraj Foundation: Funding Smaller charities of India
This organization works to bring hope and healing to the defenseless and innocent victims of disease, tragedy, and circumstances in India. the foundation works to make a real difference for those who really need it and for the people who are unable to help themselves. The main area of the work is HIV/AIDS and other diseases of such grave nature.
Now that you know, where all the funding is provided by the NSDC or who all are eligible for the internship in NSDC, think and invest in the area where the skill requirement is of the utmost importance and the NSDC will fund you because these 22 sectors that have been mentioned above almost cover everything and opening a business or an NGO in these sectors will not only be helpful for the public but will also help you expand your business and NGO to another level of growth.