Context:
Recently, the Comptroller and Auditor General of India (CAG), in an audit report tabled in the Lok Sabha, highlighted multiple irregularities in the implementation of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the flagship skill development programme of the Government of India.
About Pradhan Mantri Kaushal Vikas Yojana (PMKVY):
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- Launched in 2015 by the Ministry of Skill Development and Entrepreneurship (MSDE), PMKVY aims to empower India’s youth with industry-relevant skills, enhance employability, and promote entrepreneurship through free, outcome-based training and certification.
- The scheme has been implemented in three phases, PMKVY 1.0 (2015–16), PMKVY 2.0 (2016–20), and PMKVY 3.0 (2021–22) with a cumulative outlay of ₹14,450 crore. It seeks to address youth unemployment, which stood at around 15% for the 15–29 age group in May 2025.
- Launched in 2015 by the Ministry of Skill Development and Entrepreneurship (MSDE), PMKVY aims to empower India’s youth with industry-relevant skills, enhance employability, and promote entrepreneurship through free, outcome-based training and certification.
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Key Highlights of the CAG Report:
In its December 2025 audit, the CAG identified serious systemic and operational deficiencies across PMKVY 2.0 and 3.0:
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- Bank account irregularities: Use of invalid or dummy account numbers (e.g., “11111111111”), repeated accounts, and nonsensical entries for thousands of beneficiaries.
- Photographic discrepancies: Identical photographs used for multiple candidates across states such as Bihar, Uttar Pradesh, Maharashtra, and Rajasthan.
- Inactive training centres: Several centres were found to be non-operational, despite portal data falsely indicating ongoing training.
- Delayed payouts: Over 34 lakh certified candidates had not received their Direct Benefit Transfers (DBT).
- Quality concerns: Certifications issued by employers not classified as “Best-in-Class”, raising questions over skill credibility.
- Weak communication mechanisms: High email delivery failure rates (36.51%) and negligible response from candidates.
- Bank account irregularities: Use of invalid or dummy account numbers (e.g., “11111111111”), repeated accounts, and nonsensical entries for thousands of beneficiaries.
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Major Implications:
The CAG report exposes a significant disconnect between policy intent and ground-level execution:
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- Technology–Governance Gap: Despite reliance on digital platforms such as the Skill India Portal (SIP), weak data validation and poor oversight undermined effectiveness.
- Monitoring Failures: Shuttered training centres and repeated certifications point to inadequate inspections and weak audit mechanisms.
- Equity and Inclusion Concerns: Delayed DBT payments and communication lapses disproportionately affected marginalised beneficiaries, diluting the scheme’s inclusive intent.
- Reactive Accountability: Measures such as Aadhaar-based e-KYC, geo-tagging, QR-coded certificates, and Kaushal Samiksha Kendra inspections were introduced only after systemic lapses became evident.
- Technology–Governance Gap: Despite reliance on digital platforms such as the Skill India Portal (SIP), weak data validation and poor oversight undermined effectiveness.
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Conclusion:
The CAG audit highlights persistent weaknesses in design, data integrity, and monitoring within India’s flagship skill development programme, affecting millions of youth beneficiaries. While PMKVY remains central to India’s employment and human capital strategy, the findings underline the urgent need for stronger institutional oversight, seamless technological integration, and strict compliance enforcement to ensure that skill development translates into meaningful employability outcomes.
