This visa is a pathway to settled on permenent basis in Australia if you have a skille and qualification, which is in shortage list of Austrlia and have accepted English language Skills.
This visa is for Overseas student who are not able to pass the point test for Onshore GSM (General skilled migration - Visa subclass 885/886) then, this provisional visa of 3 years of period will help you out to get Permenent residency after you have lived at least for 2 years and worked at least for 12 month in specific regional area of Australia.
Pathway to Permanent Residency
To get this visa you have to get 100 points . You can get this points with your skill, age, english language ability, work experience, Community Language ability, Nomination of participating State/ Territory Government Agency or sponsored by an eligible relative and few other option.