Parliament Question: Under-utilisation of Funds under PMKVY

GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP LOK SABHA STARRED QUESTION NO. *2 ANSWERED ON – 01/12/2025 UNDER-UTILISATION OF FUNDS UNDER PMKVY *2. SHRI SASIKANTH SENTHIL: Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state:- (a) whether the Government is aware of the persistent under-utilisation of allocated funds under successive phases of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and if so, the reasons identified for the same; (b) the specific measures being taken by the Government under PMKVY 4.0 to ensure timely and full utilisation of funds, particularly at the State and district levels; (c) whether the Government has undertaken any evaluation of the low placement rates reported under earlier rollouts of PMKVY and if so, the details of the corrective steps initiated to improve employment and self-employment outcomes; (d) the manner in which the reforms are being implemented to strengthen the assessment and certification mechanisms to ensure better industry relevance, recognition, and employability of certified candidates; and (e) whether the Government is engaging with industry bodies, Micro, Small and Medium Enterprises (MSMEs), and State skill missions to align training content with real-time job market demands, and if so, the details of such collaborations? ANSWER THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP (SHRI JAYANT CHAUDHARY) (a) to (e) A Statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF LOK SABHA STARRED QUESTION NO. *2 ANSWERED ON 01.12.2025 ASKED BY SHRI SASIKANTH SENTHIL REGARDING UNDER-UTILISATION OF FUNDS UNDER PMKVY (a) Ministry of Skill Development and Entrepreneurship (MSDE) is implementing its flagship scheme Pradhan Mantri Kaushal Vikas Yojana (PMKVY), since 2015, for imparting skill development training through Short-Term Training (STT) and up-skilling and re-skilling through Recognition of Prior Learning (RPL) to youth across the country. The financial performance under successive phases of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) has been tabulated below: (₹ in crore) Financial Progress for PMKVY 1.0 (2015-16), PMKVY 2.0 (2016-20), PMKVY 3.0 (2020-22) & PMKVY 4.0 (2022-26) FY Budget Revised Expenditure/ % Utilized Estimate Estimate Utilized [(c/b)*100] (a) (b) (c) 2015-16 1,500.00 1,500.00 1335.00 89.00% 2016-17 1,100.00 1,249.99 699.99 56.00% 2017-18 1,300.00 1,723.19 1,719.08 99.76% 2018-19 1,984.34 1,946.45 1,909.19 98.09% 2019-20 2,116.00 1,749.22 1,613.26 92.23% 2020-21 1,350.50 1,534.39 1,514.76 98.72% 2021-22 1,438.00 1,438.00 1,043.04 72.53% 2022-23 1,442.00 739.26 233.26 31.55% 2023-24 1,558.00 920.00 510.52 55.49% 2024-25 1,938.30 1,538.00 1,538.00 100.00% Total 15,727.14 14,338.50 12,116.10 84.50% The PMKVY 4.0 scheme was re-oriented to introduce new-age, industry-aligned and integrated courses, requiring fresh design, validation and alignment with emerging sectoral needs. During this transition, the Scheme was implemented in phases and has now been fully rolled out. (b) To ensure timely and full utilisation of funds under PMKVY 4.0, MSDE is implementing a convergence-driven and priority-based strategy for qualitative skilling. MSDE is actively engaging with Central Ministries and Departments to align training with national initiatives such as the Vibrant Village Programme, National Green Hydrogen Mission, and PM Surya Ghar Muft Bijli Yojana. Institutes of National Importance (IITs, IIMs, IIITs, NITs), as well as institutions under Central Ministries such as CIPET and NIELIT, along with reputed industry foundations, are being onboarded to strengthen delivery capacity. The scheme prioritises skilling in new-age and high-growth sectors including Semiconductors, Green Hydrogen, Cybersecurity, Telecom, Automotive, IT and Electronics as well as State-specific sectors such as Tourism, Textile, Food Processing, Marine, and Construction. Further, MSDE is working closely with State Skill Development Missions (SSDMs) for timely submission of State Action Plans and with industry partners for accelerated target allocation to ensure full fund utilisation during FY 2025-26.(c) Under PMKVY scheme, placements were tracked in the Short-Term Training (STT) component in the first three versions of the Scheme - PMKVY 1.0, PMKVY 2.0 and PMKVY 3.0, implemented from FY 2015-16 to FY 2021-22. In these versions of PMKVY, out of 56.89 lakh candidates that have been certified in STT, 24.3 lakh candidates have been reported placed which makes the overall placement rate at 42.8%. Under PMKVY 4.0 which is under implementation since FY 2022-23, the focus is to empower our trained candidates to choose their varied career path through On-job Training and they are suitably oriented for the same. Further, MSDE’s flagship scheme PMKVY was evaluated by NITI Aayog in October 2020 across several states. As per the study, about 94 percent of the employers surveyed reported they would hire more candidates trained under PMKVY. Further, 52 percent of the candidates who were placed in full time/part time employment and oriented under the RPL component received higher salary or felt that they will get higher salary compared to their un-certified peers. A third-party impact evaluation of PMKVY was also conducted by the Indian Institute of Public Administration (IIPA). As per the evaluation, about 70.5% surveyed candidates received placement in their desired skill sector. The government has been taking several steps to improve employment and self- employment outcomes. This include: i. Focus on New Age Skills like Industry 4.0, Web 3.0, AR/VR, Climate Change, Circular Economy, Green Economy, and Energy Transition. ii. Emphasis on Re-skilling, and Up-skilling under Recognition of Prior Learning (RPL) through innovations in assessment, better monitoring. iii. Greater reliance on On-Job-Training (OJT) for better practical exposure to candidates. iv. Flexibility in course curriculums by introducing courses in partnership with industry. v. Cross utilisation of available infrastructure with the educational institutions viz. ITIs/Schools/Colleges/Universities/Central and State Government Institutions etc. vi. Training aligned to National Priorities and Policy Announcements focusing on clusters in sectors like semiconductor, 5G, AI, Green Hydrogen, EV, Solar Mission, Care, Tourism. (d) Under PMKVY 4.0, a Standard Operating Procedure (SOP) has been created for Assessment and Certification to ensure a structured, transparent, and accountable process, enhancing efficiency and credibility. By integrating clear timelines, automated workflows, and compliance mechanisms through Skill India Digital Hub (SIDH), the SOP streamlines operations while aligning with industry needs. These standardized procedures improve candidate experience and strengthen quality assurance. Regular monitoring and updates will ensure adaptability to best practices, reinforcing PMKVY 4.0’s commitment to high-quality skill development and employability Further, to ensure credibility and industry relevance of certifications, PMKVY follows a rigorous process involving orientation, standardised assessments by third-party assessors, and digital certificate issuance aligned with National Skill Qualification Framework (NSQF) levels. Certificates are embedded with QR codes and issued via theSkill India Digital platform, enabling real-time verification by employers. The curriculum and assessments are developed in consultation with Awarding Bodies and Industry bodies. Continuous Monitoring and Evaluation (M&E) systems are in place to assess implementation quality. These steps collectively ensure that the certifications are trusted by employers and meet industry-accepted standards. Further, to improve the implementation of the Scheme qualitatively, MSDE has established a comprehensive, technology-driven and multi-layered monitoring system to ensure transparent, accountable and high-quality implementation of PMKVY 4.0. A strong digital backbone - anchored in eKYC and Aadhaar-based authentication - enables secure onboarding of all stakeholders, while Aadhaar-enabled biometric attendance, including face authentication and geo-tagged records, ensures real-time validation of training activities. The SIDH platform tracks the complete candidate lifecycle from enrolment to post-training outcomes and provides integrated dashboards for data-driven decisions. To further strengthen oversight, the Ministry has established the Kaushal Samiksha Kendra, which conducts continuous virtual reviews. Additionally, physical inspections are conducted through MSDE-directed state and district coordinators and geo-tagged Monitoring App inspections by National Skill Development Corporation (NSDC). (e) The Government is committed to align training content with real-time job market demands and improve employability linkages under PMKVY by fostering demand-driven skilling and close collaboration with the industries, MSME clusters, business associations, private sector employers, and State/UT skill missions. These include demand mapping through skill gap studies, District Skill Development Plans (DSDPs), and active collaboration with Sector Skill Councils (SSCs) to design industry-relevant training. Key efforts include organizing industry consultations to gain deeper insights into sector-specific demands and challenges, identifying high-demand and emerging/New Age skill areas, and involving industries as Awarding Bodies. Various industries/ industry bodies and Sector Skill Councils are being engaged under PMKVY 4.0. for aligning training content with real-time job market demands. *****