20% of PMKVY funds unutilised, CAG finds

The Comptroller and Auditor General (CAG) examined the implementation of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) under the Ministry of Skill Development and Entrepreneurship to assess how effectively the scheme provided skill training and certification to youth between 2015 and 2022.

Who it concerns: Ministry of Skill Development and Entrepreneurship; candidates enrolled for skill training and certification (including youth, school/college dropouts, and unemployed individuals); state and district governments responsible for planning and fund utilization.

What the committee found

• CAG observed that training under PMKVY was not aligned with sector-specific skill-gap requirements, leading to low placement rates (41% of 56 lakh certified candidates).
• CAG noted that the national skill development plan was not prepared, with only two out of eight selected states having prepared state plans; it recommended expediting the national plan and adopting a long-term strategic plan.
• CAG found that candidates were enrolled while ignoring age, education, and work experience criteria, and recommended integrating with the UDISE database to verify beneficiaries.
• CAG reported that nearly 20% of funds allocated to states for 2016-24 remained unutilised as of March 2024, and approximately 36% of candidates had not received the Rs 500 direct benefit transfer due to insufficient bank account information.
• CAG identified irregularities in monitoring, including only 13% of batches complying with Aadhaar-based attendance requirements, use of unreliable or edited photo evidence, and instances of inspectors visiting multiple locations on the same day.
• CAG recommended that the Ministry ensure mapping of all skill training initiatives across central and state governments and prepare a roadmap for convergence and data integration.

Also in the document

• Nearly 20% of funds allocated to states for the 2016-24 period remained unutilised as of March 2024.
• Around 36% of candidates certified under the scheme had not received the Rs 500 payout due to insufficient bank account information.
• In 84% of on-spot physical inspection cases, geotagging was not available.
• Only 13% of batches under short-term training and special project components since 2018 were compliant with the Aadhaar-based attendance system requirement.