Proposals submission guidelines

Applicable for Firm or Consortium

2012
National Skill Development Corporation

National Skill Development Corporation
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A: D-4, Clarion Collection (Qutab Hotel)
Shaheed Jeet Singh Marg,
New Delhi 110 016

Sub: Proposal Submission, Guidelines and Template
The National Skill Development Corporation (NSDC) has been set up under the PMs National
Council on Skill Development with the primary mandate of enhancing, supporting and coordinating
private sector initiatives for skill development. To fulfill its objectives, NSDC is looking for
proposals to create training institutes that are innovative in operating model and can have a
multiplier effect for skill development (Proposal(s)).
May we request you to carefully study the Proposal template (enclosed) to understand NSDCs
evaluating guidelines. The proposals, among other parameters, will be evaluated through the
following guidelines:
1. Sustainability of Business models in the medium-long term
2. Partnerships with prospective employers, state governments and financial institutions
3. Proposals that target skill sets or student populations with huge unmet needs and focus on
large scale, high quality training institutes.
The NSDC will adopt a phased and detailed due-diligence process to select proposals. The detailed
evaluation will be done across six set of criteria as below:
1. Employer view of demand for the specific skills
2. Alignment with the NSDCs mission
3. Robustness of overall plan and operating model
4. Ability to leverage partnerships
5. Ability to leverage financial requirements
6. Ability to leverage management capability
You may submit your proposal to the following address.
Yours sincerely,

Dilip Chenoy
Chief Executive Officer & Managing Director,
National Skill Development Corporation
Tel: (011) 4656 0412-416
Email: [email protected]

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Table of Contents

1. Objectives of NSDC ..................................................................................................... 4
2. Instructions to applicant ............................................................................................. 6
3. Nature of Likely Impact ............................................................................................. 7
4. Project Description - Target sectors/skills/population ............................................ 8
5. Overall plan / operating model .................................................................................. 9
6. Proposed / Existing Partnership .............................................................................. 12
7. Financial Plan ............................................................................................................ 13
8. Organization details/ Profile of Management Team .............................................. 15
9. Key documents to be attached with proposal ......................................................... 16




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1. Objectives of NSDC
Contribute significantly to the overall skill development target of the country (500 million skilled
people by 2022) through market making initiatives that act like a catalyst in increasing private
sector involvement in equitable skills development.
To fulfill its objective, NSDC is looking for Proposals that are innovative and can have a
multiplier effect / ripple effect in the skill development space, and are targeted at the sectors/
segments with huge unmet needs (e.g. unorganized sector, training of trainers). The Proposal should
preferably be focused on utilizing the funds from NSDC for bridging any operational viability gaps
rather than for building infrastructure. NSDC will prefer Proposals that ensure sustainability in the
long run and include partnerships with employers, state governments, and financial institutions for
providing loans to the trainees to fund the course fees and/or self-employment opportunities.
Criteria for consideration of proposals
1.1. Proposals should preferably be in the following priority sectors identified by the Planning
Commission
Industry Services
1. Automobile/auto component
2. Electronics hardware
3. Textiles and garments
4. Leather and leather goods
5. Chemicals and pharmaceuticals
6. Gem and jewellery
7. Building and construction
8. Food processing
9. Handlooms and handicrafts
10. Building hardware and home
furnishings
11. ITs or software services
12. ITES BPO services
13. Tourism hospitality and travel trade
14. Transportation/ logistics/ warehousing and
packaging
15. Organized retail
16. Real estate services
17. Media, entertainment, broadcasting, content
creation, animation
18. Healthcare services
19. Banking/insurance and finance
20. Education/skill development services
1.2. Proposals should preferably identify and target the most important gap in skill development in
a sector/ region
1.3. Proposals should target to cover a significant portion of the priority target segment
(unorganized sector, trainers)
1.4. Proposals should focus on sustainability of the project
1.5. Proposals should focus on scalability in terms of scope, reach and scale of operations.
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1.6. Proposals should clearly outline the funding requirement from NSDC and should be as per the
NSDC funding guidelines (refer www.nsdcindia.org for funding guidelines)
1.7. NSDC will not fund any land and physical infrastructure (like building etc) requirement of
proposals and the NSDC funding is to be used for core skill development purpose only.
1.8. NSDC will fund proposals in the form of either loan or equity participation and proposals
should not expect any grant funding from NSDC.
1.9. The company submitting the Proposal should preferably have prior experience of working in
the field of skill development and within the segment it will target.
1.10. Proposals should clearly outline the legal structure of the firm/consortium for the proposed
fund utilization.

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2. Instructions to applicant
2.1. In case the Applicant (Proposal owner) proposes to apply as a group of entities (the
Consortium), coming together to implement the Proposal under an existing binding
agreement in the form of a Consortium Agreement.
a. Such Consortium Agreement should clearly define the roles and responsibilities of
individual members and their inter-se relationship, particularly with reference to
financial, technical and operating obligations of the individual members for the Proposal.
b. Such Consortium Agreement should 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 such Consortium on behalf of the members of such
Consortium, 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.
c. Such Consortium Agreement should be for a minimum period of 5 (five) years or till the
proposed project is executed, whichever is later
d. Such Consortium should clearly specify that all Consortium members shall be 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.
e. The Lead Member of the Consortium shall be the single point of contact for NSDC with
relation to project execution, monitoring and any matter connected therewith.
f. A copy of the Consortium Agreement is required to be submitted along with the
Proposal, failing which the Proposal shall be considered incomplete.
g. Such members of the Consortium may also enter into a joint venture agreement to
execute the Proposal incorporating the above terms, however in all circumstances, the
members forming such a joint venture shall remain jointly and severely liable for the
execution of the Proposal in accordance with the terms and conditions of the
agreement(s) as may be executed with NSDC.
2.2. Such Consortium Agreement and/or joint venture agreement as per Clause 2.1 above shall
form an integral part of the transaction documents with NSDC.
2.3. All proposals submitted to NSDC shall become the property of NSDC, which shall not be
liable to be returned to the proposer. NSDC would, however, maintain confidentiality of the
information contained within 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.
2.4. Furthermore, NSDC would have the absolute discretion to reject any proposal without
assigning any reason whatsoever.
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3. Nature of Likely Impact
Since impact is the key metric to focus on in the skill development area, please provide a brief
outline of the outcome of the benefits of the proposed proposal along the following dimensions
Number of people trained in the next 10 years
Likely increment in the package after training/
upskilling (% or absolute)

In case of self-employment, likely increase in
monthly earnings after training (Rs./month)

Guaranteed placement percentage (including self-
employment)

The information provided here will be used to track the performance of the company and the yearly
funding support will be given based on this performance.

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4. Project Description - Target sectors/skills/population
4.1. Project Name/ Objective (word limit of 50 words)




4.2. Project Coverage: (It will be beneficial to indicate how the proposal is in line with NSDCs
mandate of reducing the skill gap in the target sectors ; word limit of 50 words)
a. Sector / skills targeted (kindly indicate the most important sectors/skills)
# Sector Function (role in
the value chain)
Gaps identified /
addressed
Potential benefit to sector




b. Segment targeted in terms of trainee (kindly indicate the specific population segment that
the plan is trying to address/mix of students e.g. 60% school dropouts in every batch)
# Sector Function
(role in
the value
chain )
Type of trainees (current
student pool, drop-outs, up
skilling of human resources,
national identity etc.,)
Total no. of
trainees
targeted
No. of trainees per
annum (mention
for every year, if
numbers are
different)






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5. Overall plan / operating model
Please indicate the details of the overall plan for addressing the gap that the proposal has identified.
It will be helpful to indicate how NSDC funding will be used in fulfilling the requirements and in
achieving sustainability for the proposed plan. Please adhere to the word limit. Any supporting
documents should be attached as Annexures.
5.1. Overall plan details (kindly articulate the overall plan including the number of unskilled
manpower and upskilled manpower trained, rollout plan, location, type of training, role of
various partners, new or existing infrastructure required; word limit of 100 words)






5.2. Nature of deployment of training program (centralised/decentralised/hybrid), proposed list of
courses to be offered along with its fee structure and duration, past turnout from the existing
institute in each course, if any, and proposed turnout in each course being offered (please
specify in a word limit of 100 words).






5.3. Please indicate the training location identified and the reasons for choosing the particular
training locations (please specify in a word limit of 50 words)







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5.4. Please provide details on how students would be identified and selected for the courses
(please specify in a word limit of 50 words)




5.5. Mode of quality assurance and curriculum followed (please indicate the accreditations to be
taken, the assessment methodology and the authority providing the certification, e.g. the
training institute will be accredited with the NCVT; an external jury comprising of industry
will do the assessment and will provide the certification; the curriculum will be developed
using the help of industry associations; word limit of 50 words)




5.6. Qualification of trainers for these courses (please indicate the proposed faculty with respect to
each course offered, qualification and experience of trainers; proposed salary levels of faculty
etc.; word limit of 50 words)





5.7. Please specify a plan for recruiting and retaining faculty at discrete training locations (please
indicate the plan in a word limit of 100 words)










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5.8. Please specify in detail a placement strategy post training for trainees (please indicate in a
word limit of 50 words)




5.9. Plans for scale up (it will be helpful to indicate how the plan addresses the issue of scalability;
e.g. the plan addresses the issue of scalability by developing 20 satellite centers in different
under-developed areas of the state; these satellite centers would be setup in partnership with
the State Government to use existing infrastructure like primary schools; word limit of 50
words)




5.10. Technology usage and innovativeness (ripple effect or multiplier effect) (please indicate how
the program plans to use technology or innovative models to achieve scale / create a ripple
effect in skill development; e.g. video conferencing to provide technical education in various
centers of India or setup train the trainers facility to increase availability of trainers; word
limit of 50 words)




5.11. Outline the monitoring mechanism for successful implementation and smooth running of the
project (in terms of monthly information systems (MIS), or other tracking systems etc., word
limit of 50 words)








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6. Proposed / Existing Partnerships
The Applicant shall indicate the partnerships that the plan envisages for smooth running and
sustainability of the program and how many of them are already in place
6.1 Partnerships with employers/ industry (kindly indicate the partnerships that will be needed
and the partnerships that are already in place; word limit of 50 words.)




6.2 Partnership with financial institutions (e.g. partnerships with microfinance companies to
ensure access to all segments; word limit of 50 words)




6.3 Partnership with other organizations like state governments and NGOs (nature of the
partnership; e.g. MoU with the State govt. to use existing infrastructure of primary schools to
reduce costs for capital expenditure; word limit of 50 words)













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7. Financial Plan
Please indicate the critical financial parameters of the proposal along with sufficient backups
indicated below: All the supporting documents should be attached as Annexures.
7.1 Please provide financial statements including P&L statement, balance sheet and cash flow
statement for at least 10 (ten) years of project operations (please provide soft copies of the
worksheets).
7.2 Details of the Capital Expenditure for the next 10 (ten) years of project operations (kindly
specify in detail the list of existing and proposed equipment, technology etc. with costs and
their key functions)
7.3 Details of the Operating expenses for the project for the next 10 (ten) years of project
operations (kindly specify in detail the list of discrete annual fixed and recurring expenses for
smooth running of the project)
7.4 Details of the Revenue model/ key sources of earning for the project (please indicate the key
revenue streams for the project; e.g. course fees to be paid by the trainees, placement fee from
employers, tie-up with State govt./donor agencies/NGOs for partial funding of course fees etc)
7.5 Financial Internal rate of return (IRR) from the project including the major base assumptions
in the financial model.
7.6 Type and amount of funding required from NSDC like equity investment, soft loan, etc. (it
will be helpful to give a brief rationale around why this funding should be provided by NSDC;
word limit 50 words)



7.7 Amount to be funded by NSDC per person trained per week (please indicate the amount that
NSDC has to provide per person trained per week, e.g. Rs. 200 per person per week is to be
provided by NSDC as soft loan to lower the cost of training for the students; word limit of 50
words)






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7.8 Amount raised from other sources (including own contribution) (Provide list of the breakup
and funds raised from other sources like banks / financial institutions, State govt., donor
agencies, ; word limit 50 words)




7.9 Financial independence (please indicate how the Proposal/ program envisaged by you will
become self sustainable after the first few years of funding support from NSDC; word limit of
50 words)




7.10 Key risks associated with project and mitigation strategy (market, technical, organization and
financial risks; word limit of 100 words)

















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8. Organization details/ Profile of Management Team
Please indicate the organization details and the prior experience and the qualification of the
management team identified. All the supporting documents should be attached as Annexure
8.1 Detail of the company applying for the proposal (please indicate organization name/ country
and year of incorporation/ registered office/ contact details/ key activities of the organization/
sector expertise and provide relevant legal documents as Annexures)



8.2 Proposed organization structure (SBU, SPV, subsidiary company etc; word limit of 50 words)



8.3 Prior experience in skill development space (word limit of 50 words)



8.4 Educational qualification and experience of the management team (team member wise; word
limit of 50 words)



8.5 Please provide details of key achievements of management/ project team in the area of skill
development (word limit of 50 words)



8.6 Experience of Project Execution Team (please provide detailed CV of the project execution
team)





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9. Key documents to be attached with proposal
a. Documents evidencing legal existence of your entity (s) e.g. Certificate of Incorporation /
Registration / License under Section 25 of the (Indian) Companies Act, 1956 etc.
b. Full details of shareholders/ members/ trustees along with documentary evidence supporting
the same like register of members / returns submitted with the authorities etc.
c. Full details of the governing council members / board of directors/ management team
looking after day to day affairs of your entity(s) along with documentary evidence
supporting the same like register of directors / return submitted with the authorities etc.
d. Details of registration with tax/other authorities for the purpose of exemptions, if any
e. Address of the registered office/ corporate / branch offices along with documentary evidence
like copy of the registration certificate of the company, lease deeds, property papers etc.
f. Provide tax and/ or other applicable statutory returns / reportings filed/ made with the
government authorities for the last three years or since existence whichever is later along
with relevant corporate progress and financial reporting documents like Balance Sheet/
Profit and Loss Account/ Statement of Expense etc
g. Confirmation certificate in original signed by the head of the applicant entity such as
Managing Director/ Chief Executive Officer/ Chairman confirming compliance with all
applicable laws including but not limited to labor laws, environmental laws, tax laws,
industrial laws, along with applicable supporting documents.
h. Copies of minutes books of the meetings of the governing council / board of directors/
trustees/ shareholders/ members for the last three years or since inception whichever is later
i. Details of all secured and unsecured loans / financial assistance availed by your entity(s)
from banks / financial institutions / government institutions along with details of any
mortgage, charge, hypothecation and pledge created on any property of your entity(s)
j. Details and documents pertaining to all major contracts / agreements executed by your
entity(s) imposing obligation/ liability and/ or special right on your entity(s) including and
not limited to employment contracts with key employees.
k. An Applicant shall provide details regarding pending or threatened litigation / quasi judicial
proceedings, notices / orders etc. (if any) in relation to or in manner affecting the rights of
your entity (s) to any movable / immovable asset / liability along with relevant documents.
l. A consortium agreement, if applicable
m. CVs of project execution team
n. Soft copies of technical and financial proposal (including excel sheets) in CD