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Skill development allowance scheme in Himachal Pradesh

This content provides information about the Skill Development Allowance Scheme in Himachal Pradesh.


Skill Development Allowance to the unemployed youth scheme aims at providing allowance to educated unemployed Himachali youth for their skill upgradation. The objective is to enable such youth to develop their skill so as to take up employment or self-employment in the sector of their choice form training institute of their choice.


Skill Development Allowance of Rs, 1,000 per month is being provided to the youth who undertake skill training to enhance their employability, Youth with disabilities are provided Rs 1,500 per month as Skill Development Allowance. Most of the skill development courses can be completed in three months to two years. This allowance is being given to unemployed youth whose family income is less than Rs 2 lakh per annum.

The unemployed youth are allowed to utilize this allowance for upgrading their skill in any sector where they propose to get employment. After completion of skill training, if an unemployed youth intends to take up self-employment then he could apply for loan to a bank or to the Scheduled Castes, Scheduled Tribe, and Other Backward Classes Corporation. The State Government provides an interest subvention of 4 per cent up to project cost of Rs 1.50 lakh for five years,

To bring maximum youth under the ambit of this scheme, the scheme has been significantly liberalized. Now the 8th pass Himachali youths, who are above 16 years and below 36 years are eligible to avail benefit under this scheme. The condition of registration in the employment exchange for at least two years has been waived off. Further, the minimum educational requirement has also been waived off for training in masonry, carpentry blacksmith, plumbing, etc. The Government has now decided to bring B.Sc Nursing course under the fold of Skill Development Allowance. This would provide relief to thousands of girls studying B.Sc Nursing in several government and private nursing institutions in the state.

The educated unemployed make an application to Employment Exchanges in HP where his/her name is registered or in the Employment Exchange in HP in the jurisdiction the applicant is obtaining training. The Employment Exchange after scrutinizing applications within 45 days issue orders about admissibility or otherwise to the applicant.

Key takeaways

Here, the sole objective of the State Government is consolidation and qualitative improvement of education, capitalization on natural advantages in tourism, socio- economic upliftment of weaker section of the society by providing skilled manpower as per the demand of the industry to meet the future challenges set up by the rapidly changing economy.

To know more about the scheme and for forms and online application, click here.

Source : Skilling for employability - Best Practices

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