The Centre today approved a Rs 1,000 crore special package for imparting training to 8,000 youth annually in Jammu and Kashmir with the help of the corporate sector.

As many 40,000 graduates, post-graduates and professional degree holders from all districts of the state will be covered in the next five years.

"The estimated expenditure on the special industry initiative (SII) scheme is Rs 2.5 lakh per trainee," an official statement said after a meeting of the Cabinet Committee on Economic Affairs (CCEA), which cleared the proposal.

The cost of travel, boarding and lodging and stipends under the scheme will be borne by the central government.

To be funded entirely by the Centre, it will be implemented in partnership with the National Skill Development Corporation (NSDC) and other institutions identified for the purpose.

The statement said the corporate sector would also be involved in the initiative, which will involve an expenditure of Rs 500 crore over the next five years, beginning from the current fiscal. The corporate sector would be incentivised to absorb the youth trained under the project.

"The training cost will be initially borne by the corporates. As an incentive to the corporate, 50 per cent of the training cost would be reimbursed if the trained youth are given employment in the company," the statement added.

Under the scheme, identified companies would screen and select students from the state and after assessing the skill gap and the need of the corporate, the youth would be suitably trained.

The SII is based on the recommendations of an expert group set up by the Prime Minister's Office in August, 2010, under the chairmanship of C Rangarajan. Rangarajan is the chairman of the Prime Minister's Economic Advisory Council (PMEAC).

The scheme has been launched to enhance employment opportunities in Jammu and Kashmir and to formulate a jobs plan involving both the public and private sectors, especially for the youth.