Union Government signed Financing Agreement with World Bank to fund education of minorities

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Who: Union Government
What: Signed Financing Agreement with World Bank
When: 1 January 2016

The Union Government on 1 January 2016 signed a Financing Agreement of 50 million US dollars with the World Bank for Nai Manzil Scheme- Education and Skills Training for Minorities.

The Financing Agreement was signed by Raj Kumar, Joint Secretary, Department of Economic Affair (DEA) on behalf of the Union Government and by Michael Haney, World Bank’s Operations Adviser in India.

Highlights of the agreement

• Under this agreement, the credit will be facilitated by the International Development Association (IDA), World Bank’s concessionary lending arm.
• The credit facilitated by IDA will be in the form of loan which carries a maturity of 25 years, including a 5-year grace period.
• The loan funds will be used for interventions under this scheme to improve the employability and performance of minority youth in the labour market.
• The total project size is 100 million US dollars, out of which 50 million US dollars will be available as IDA credit and the remaining balance as funding from the Union Budget.
• The closing date of the project is 31 October 2021.

About Nai Manzil Scheme

• The scheme was launched on 8 August 2015 in Patna.
• This central scheme is designed to address educational and livelihood needs of minority communities lagging behind in terms of educational attainments.
• It aims to provide educational intervention by giving the bridge courses to the trainees and getting them Certificates for Class XII and X from distance medium educational system.
• It seeks to provide trade basis skill training in four courses at the same time of formal education, in field of (i) Manufacturing (ii) Engineering (iii) Services (iv) Soft skills.
• It intends to cover people in between 17 to 35 age group from all minority communities as well as Madrasa students.
• Minority BPL (below poverty line) youth in the age group of 17-35 years will be the main beneficiaries of the scheme.