CAG Findings on Pradhan Mantri Kaushal Vikas Yojana

Kaushal Vikas Yojana Latest News

• The Comptroller and Auditor General (CAG) has flagged serious implementation gaps in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) in an audit report tabled in Parliament.

Pradhan Mantri Kaushal Vikas Yojana: An Overview

• The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is the flagship skill development scheme of the Government of India, launched in July 2015 under the Skill India Mission. 
• The scheme is implemented by the Ministry of Skill Development and Entrepreneurship (MSDE) through the National Skill Development Corporation (NSDC).
• The core objective of PMKVY is to enable Indian youth to acquire industry-relevant skills, improve employability, and address the problem of educated unemployment. 
• The scheme focuses on short-term training, Recognition of Prior Learning (RPL), certification, and placement support.
• PMKVY has been implemented in three phases:
  • PMKVY 1.0 (2015-16)
  • PMKVY 2.0 (2016-20)
  • PMKVY 3.0 (2021-22)
• Across these phases, the scheme aimed to provide skill training and certification aligned with the National Skills Qualification Framework (NSQF).

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Key Features of PMKVY

• PMKVY provides free skill training to eligible youth across a wide range of sectors such as construction, manufacturing, healthcare, electronics, retail, and services. 
• Training is conducted through approved Training Centres and Industry Partners.
• A distinctive feature of the scheme is outcome-based funding, where payments to training partners are linked to certification and placement. 
• Each certified candidate is eligible for a monetary reward of Rs. 500, transferred through Direct Benefit Transfer (DBT).
• The scheme also emphasises digital monitoring through the Skill India Portal (SIP), Aadhaar-based authentication, and third-party assessments to ensure transparency.

Achievements of the Scheme

• Since its launch, PMKVY has emerged as one of the largest skill development programmes in the world. 
• Between 2015 and 2022, the scheme had a cumulative financial outlay of approximately Rs. 14,450 crore.
• According to official data, around 1.32 crore candidates were targeted for training and certification, out of which about 1.1 crore candidates were certified across the three phases. 
• PMKVY has helped expand the skill ecosystem by:
  • Creating a nationwide network of training centres
  • Standardising skill certification through NSQF
  • Promoting Recognition of Prior Learning for informal workers
  • Integrating skill development with Digital India and DBT mechanisms
• The scheme plays a crucial role in India’s demographic dividend strategy, especially when youth unemployment in the 15-29 age group remains high.

News Summary: CAG Findings on PMKVY

• A recent CAG audit report, tabled in the Lok Sabha, has highlighted serious deficiencies in the implementation of PMKVY between 2015 and 2022.
• One of the most glaring findings was the use of invalid bank account numbers, including entries such as “11111111111”, blank fields, or repeated account numbers for multiple beneficiaries. 
• The audit found that over 94% of candidate records lacked reliable bank account details, raising concerns about beneficiary identification.
• The CAG also flagged that payouts to more than 34 lakh certified candidates were pending, even years after completion of training. 
• Despite the ministry’s claim that Aadhaar-linked DBT would resolve payment issues, only 18.44% of candidates received successful DBT payments under PMKVY 2.0 and 3.0.
• Additionally, the audit revealed shut training centres, instances where training was shown as ongoing even when centres were physically closed, and the reuse of identical photographs for multiple beneficiaries across states such as Bihar, Uttar Pradesh, Maharashtra, and Rajasthan.
• The CAG also questioned the credibility of “Best-in-Class” employers involved in skill certification and highlighted weak monitoring of training quality and outcomes.

Government Response and Corrective Measures

• In response to the audit, the Ministry of Skill Development and Entrepreneurship stated that the scheme has since been significantly strengthened. Measures include:
  • Aadhaar-authenticated e-KYC
  • Face authentication and geo-tagged attendance
  • QR-coded digital certificates
  • Enhanced inspections through Kaushal Samiksha Kendras
  • Penalty framework, blacklisting, and recovery from non-compliant entities
• The government claims that these reforms aim to ensure transparency, accountability, and better beneficiary tracking.

Source: IE