The fund has invited expressions of interest from public sector banks to invest around Rs 900 crore in fixed deposits for a period of one year, the ministry of skills development and entrepreneurship said in a notification.
The plan is to prepare a panel of banks for investment of surplus funds in fixed deposits.
As per the notification, the highest bidder (H1) be offered 60% of the funds earmarked for being kept as fixed deposit (FDs). The second highest bidder (H2) will also be given chance to match rate offered by H1 and if agreed, remaining 40% funds will be offered to be kept as FDs with H2.
However, if the rate is not matched by H2, then 100% will be offered to H1, the ministry said.
The investments will be made directly without involvement of any broker or agent and no commission or brokerage will be paid by NSDF. 11. Following the empanelment, NSDF will float bids for competitive Interest rate, for placing surplus funds, from only the empanelled banks. NSDF, which was formed in 2008 as a trust and is fully owned by the government, acts as a receptacle for financial contributions from governmental sources, bilateral or multilateral and other agencies as well as the private sector donors.
Its main objective is to enhance, stimulate and develop the skills of the Indian youth by various sector specific programmes. The NSDF funds are used for facilitating and encouraging skill development of the employable youth in the country by collecting and utilizing the funds of the Trust and to implement programmes through the National Skill Development Corporation (NSDC).