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National Skill Certification and Monetary Reward Scheme (STAR)

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The National Skill Certification and Monetary Reward Scheme, that is branded as STAR (Standard Training Assessment and Reward) for promotional purposes, is a scheme launched by the Government in 2013 to motivate the youth of India to acquire a vocational skills andenvisages a monetary reward that will in essence financially help those who wish to acquire a new skill or upgrade their skills to a higher level.


The National Skill Certification and Monetary Reward Scheme launched by the Finance Minister on 16th August 2013 is the culmination of the Finance Minister's 2013-14 Budget Speech (para 113) as given below

“A large number of youth must be motivated to voluntarily join skill development programmes. I propose to ask the National Skill Development Corporation to set the curriculum and standards for training in different skills. Any institution or body may offer training courses. At the end of the training, the candidate will be required to take a test conducted by authorized certification bodies. Upon passing the test, the candidate will be given a certificate as well as a monetary reward of an average of 10,000 per candidate. Skill-trained youth will give an enormous boost to employability and productivity. On the assumption that 10,00,000 youth can be motivated, I propose to set apart 1,000 crore for this ambitious Scheme. I hope that this will be the trigger to extend skill development to all the youth of the country.”

Salient Features of the Scheme

All trainings will be specifically oriented for developing skills in specific growth sectors. The Scheme will provide monetary incentives [in the range of Rs. 7500 to Rs. 15,000 each trainee depending on the nature and duration of training] on successful completion of market-driven skill training to approximately ten lakh( 1 million) youth in a span of one year from the date of implementation of the Scheme.

The entire fund [of Rs. 1000 crore] will be shouldered by the Ministry of Finance, Government of India, and will be affected through direct bank transfer to the beneficiaries’ accounts linked through AADHAR. Appropriate consideration will be provided to the economically backward sections.

The monetary reward is strictly dependent on obtaining a certificate that will be issued by qualified assessors after necessary tests have been passed. The skills are also benchmarked to National Occupational Standards that have been developed by NSDC with the support of the Sector Skill Councils.

The raison d’eter for the Scheme is to meet the increasing demand of domestic industry as well as to provide meaningful employment to the unemployed youth. The Scheme aims to mobilize youth to take up Vocational Education as an opportunity for becoming employable; encourage standardization in the certification process and initiate a process of creating a registry of skills; and increase productivity of the existing workforce and align the training and certification to the needs of the country.


The Scheme will be implemented through a Public Public Partnership mode. National Skill Development Corporation (NSDC), a PPP institution, will be the implementing agency for this Scheme. National Skill Development Fund (NSDF) -a 100% government-owned trust, which work in sync to fulfill the NSDC’s strategic objectives- will do the oversight and monitor the implementation of the Scheme.

Ministry of Rural Development is contemplating to utilise this platform to skill at least one youth from each family which had availed of 100 day employment under the under the rural job guarantee scheme - MGNREGA


It is beginning of the endeavour of Government to take through the vision of skilling 500 million by 2022.While 150 million are expected to be contributed by the private sector working under National Skill Development Corporation (NSDC), 350 million will be contributed by 18-odd ministries at the Centre.

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