The Ministry of Rural Development has organised a meeting of senior industry leaders in Jaipur to increase corporate participation in the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) 2.0, a scheme that trains rural youth for employment. The Captive Employer CXO Meet brought together over 50 major employers, industry associations and government officials to align skill training with hiring needs of companies that have committed to absorb trained workers.
DDU-GKY 2.0 is the central government’s flagship programme to provide vocational training to unemployed rural youth aged 18 to 35, combining technical skills, soft skills and language training to make them job-ready. Companies that agree to hire a fixed percentage of trainees are called captive employers. The scheme has trained 18.49 lakh youth so far, with 12.44 lakh successfully placed in jobs.
Key facts
- Total youth trained under DDU-GKY to date: 18.49 lakh
- Total youth placed in jobs: 12.44 lakh
- National target for captive employment component: 1.83 lakh candidates
- Allocation for captive employers in DDU-GKY 2.0 targets: 20 per cent
- Minimum placement or self-employment outcome target: 70 per cent of trained candidates
- Payment structure to training agencies: four instalments in 30:20:20:30 ratio
- Location of employer meet: Rajasthan International Centre, Jaipur
- Participants: Over 50 employers, State Rural Livelihood Missions, State Skill Development Missions, Sector Skill Councils
What is captive employment under DDU-GKY 2.0
In the captive employment model, large companies or corporate groups commit in advance to hire a specific number of trained workers from the scheme. This creates a direct link between training and job placement. Rather than trainees competing in the open job market, employers guarantee employment for those who complete training and meet their quality standards. The ministry has set aside one-fifth of all DDU-GKY 2.0 targets for this captive model, aiming to place 1.83 lakh youth through this route.
Payment and incentive structure
Project Implementing Agencies, which include eligible captive employers, receive training grants in four stages. They receive 30 per cent of the total payment upfront, followed by 20 per cent after the first set of trainees begin their courses. Another 20 per cent comes when trainees complete training. The final 30 per cent payment is conditional on trainees completing six months of continuous employment and meeting verification requirements. This structure ensures employers maintain training quality and retain workers for the mandatory employment period.
How companies can participate
Interested industry partners must respond to Expressions of Interest (EoIs) issued by State Implementing Agencies. These agencies work under state governments to co-ordinate all training and placement activities. Companies specify their skill requirements, the number of workers they will hire, and their capacity to provide on-the-job training and supervision. The scheme covers all sectors, from manufacturing to services.
Training and employment outcomes
DDU-GKY-trained workers receive domain-specific technical skills matched to their assigned employer, along with soft skills such as communication, teamwork and professional conduct. Language training is also provided to enhance their ability to work in diverse environments. The scheme mandates that at least 70 per cent of trained candidates either secure employment or establish self-employment ventures within six months of course completion. For captive placements, this means employers must hire and retain 70 per cent of graduates from their assigned training batches.
What this means for you
If you are a rural youth aged 18 to 35 seeking skill training and stable employment, DDU-GKY 2.0 offers free training in trades linked directly to hiring companies. Captive employment paths reduce uncertainty in job placement because companies have already committed to hiring trained graduates. If you run an industry or represent an employer group, the scheme offers access to pre-trained workers without recruitment costs, with central government funding covering most training expenses. State governments benefit from reduced rural unemployment and faster economic growth in rural areas.
What happens next
Companies interested in becoming captive employers under DDU-GKY 2.0 must file Expressions of Interest with State Implementing Agencies in their respective states. State governments and the Ministry of Rural Development will review applications, finalise partnerships and launch training batches aligned with employer hiring schedules. The six-month employment verification period will be monitored to ensure both training quality and job sustainability.