**Executive Summary**
This document contains the response to Unstarred Question No. †301 in Lok Sabha, answered on February 2, 2026, regarding alleged misappropriation of funds in skill development schemes, specifically under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), DDU-GKY, and NSDC. It outlines the government's initiatives in skill development and addresses concerns raised about financial irregularities. The document also mentions corrective measures implemented under PMKVY 4.0.
**Key Points / Main Content**
* **Government Skill Development Initiatives:**
* The Ministry of Skill Development and Entrepreneurship (MSDE) conducts skilling, re-skilling, and up-skilling programs through various schemes, including Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan Sansthan, National Apprenticeship Promotion Scheme, and Craftsman Training Scheme through Industrial Training Institutes (ITIs).
* The MSDE implements PMKVY, which provides skill training through Short Term Training (STT) and Re-skilling and Up-skilling through Recognition of Prior Learning (RPL).
* The National Skill Development Corporation (NSDC) is the implementing arm of the MSDE.
* The Ministry of Rural Development implements the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), a placement-linked skill development programme for rural poor youth aged 15–35 years.
* **Alleged Misappropriation and Government Response:**
* The Comptroller and Auditor General (CAG) conducted a Performance Audit of PMKVY, flagging deficiencies in legacy systems related to data validation, beneficiary details, assessor information, eligibility verification, and monitoring.
* The government has since implemented comprehensive corrective measures under PMKVY 4.0, including Aadhaar-based e-KYC, face authentication, geo-tagged attendance, QR-coded digital certificates, strengthened assessor and training centre accreditation, independent monitoring, revised monitoring guidelines, and a robust penalty and recovery framework.
* Disciplinary actions, including suspension, blacklisting, and recovery of funds, have been taken where non-compliance was established.
**Impact Analysis**
**Stakeholder: Ministry of Skill Development and Entrepreneurship (MSDE)**
* **Impact:** The MSDE is responsible for overseeing and implementing skill development schemes. The audit findings necessitate stronger accountability, verification, and oversight mechanisms within the schemes.
* **Action Required:** Ensure adherence to the corrective measures implemented under PMKVY 4.0 and maintain rigorous monitoring and evaluation processes.
**Stakeholder: Training Providers (Pradhan Mantri Kaushal Kendras (PMKKs), PMKVY Training Centres, Industrial Training Institutes (ITIs), etc.)**
* **Impact:** Training providers are subject to stricter accreditation, monitoring, and potential penalties for non-compliance.
* **Action Required:** Adhere to the revised monitoring guidelines, ensure compliance with PMKVY 4.0, and maintain accurate and verifiable records.
**Stakeholder: Beneficiaries (Youth participating in skill development programs)**
* **Impact:** Beneficiaries should experience more robust training programs with improved quality and accountability, enhanced by the corrective measures and enhanced oversight.
* **Action Required:** Participate actively in the training programs and provide feedback on the quality of training received.
**Stakeholder: Comptroller and Auditor General (CAG)**
* **Impact:** Their audit findings prompted corrective actions in skill development schemes.
* **Action Required:** Continue to monitor the effectiveness of the implemented corrective measures through subsequent audits.
Key Entities Referenced
Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Flagship scheme of the Ministry of Skill Development and Entrepreneurship for skill development. This scheme is the primary focus of the investigation into misappropriation of funds.
Ministry of Skill Development and Entrepreneurship (MSDE): The central ministry responsible for skill development and entrepreneurship initiatives and the main subject of the parliamentary question.
Comptroller and Auditor General (CAG): The independent authority that conducted the Performance Audit of PMKVY, revealing deficiencies that form the basis of the questions about misappropriation.
Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY): A placement-linked skill development programme for rural poor youth, mentioned alongside PMKVY as a scheme under scrutiny.
National Skill Development Corporation (NSDC): The implementing arm of the MSDE, responsible for the practical execution of the skill development schemes.
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. †301
ANSWERED ON 02.02.2026
MISAPPROPRIATION OF FUNDS IN SKILL DEVELOPMENT SCHEMES
†301. SHRI RAJESH RANJAN:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be
pleased to state:
(a) whether it is a fact that schemes are being operated in the name of skill
development through the Pradhan Mantri Kaushal Vikas Yojana, DDU-GKY and
NSDC, using private training partners;
(b) whether it is also a fact that approximately 10,000 crore rupees have been
misappropriated in the above schemes due to fake training, fake placements, nominal
operation of training centres and a commission system; and
(c) if so, whether the Government is considering CBI investigation in the said
matter?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) Under the Government of India’s Skill India Mission, the Ministry of Skill
Development and Entrepreneurship (MSDE) conducts skilling, re-skilling and up-
skilling programs through an extensive network of skill development centres/ institutes
etc. under various schemes, viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan
Shikshan Sansthan, National Apprenticeship Promotion Scheme and Craftsman
Training Scheme through Industrial Training Institutes (ITIs), to all the sections of the
society across the country.
The MSDE is implementing its flagship Scheme Pradhan Mantri Kaushal Vikas Yojana
(PMKVY) since 2015. Under PMKVY, skill training is imparted through Short Term
Training (STT) and Re-skilling and Up-skilling through Recognition of Prior Learning
(RPL) to youth across the country. As per PMKVY 4.0 guidelines, the training providers
may be Pradhan Mantri Kaushal Kendras (PMKKs), PMKVY Training Centres,
Industrial Training Institutes (ITIs), Schools, colleges, Higher Education Institutes,
training centres of other Ministries/Department, training centres of industry partners
and private training providers, etc. The National Skill Development Corporation
(NSDC) is the implementing arm of the MSDE.The Ministry of Rural Development implements the Deen Dayal Upadhyaya Grameen
Kaushalya Yojana (DDU-GKY), a placement-linked skill development programme for
rural poor youth aged 15–35 years. It empowers the rural poor youth with employable
skills and facilitates their participation in regular labour markets, thus providing them
with jobs having regular monthly wages at or above the minimum wages. DDUGKY is
implemented in project mode through Project Implementing Agencies (PIAs), which
may include eligible government or semi-government bodies, NGOs registered with
NITI Aayog, registered trusts/societies/companies/LLPs/cooperatives/SHGs and their
federations, and other entities with a minimum three-year operational experience,
except start-ups.
(b) & (c) The Comptroller and Auditor General (CAG) conducted a Performance
Audit of PMKVY covering its initial phases up to 2022 and flagged certain deficiencies
in legacy systems relating to data validation, beneficiary details, assessor information,
eligibility verification, and monitoring processes, largely attributable to limitations in IT
controls and decentralized implementation prevalent at that time.
Taking cognizance of these observations, the Government has since undertaken
comprehensive corrective measures under PMKVY 4.0, including Aadhaar-based e-
KYC, face authentication and geo-tagged attendance, QR-coded digital certificates,
real-time dashboards on the Skill India Digital Hub, strengthened assessor and training
centre accreditation through NCVET, independent monitoring via Kaushal Samiksha
Kendra, revised monitoring guidelines with clear KPIs, and a robust penalty and
recovery framework.
Disciplinary actions, including suspension, blacklisting, recovery of funds, and drastic
steps have been taken wherever non-compliance was established, thereby
institutionalising stronger accountability, verification, and oversight mechanisms under
the scheme.
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