New Delhi: The Comptroller and Auditor General of India (CAG) has highlighted serious shortcomings in the Prime Minister’s Skill Development Scheme (PMKVY). In its performance audit tabled in Parliament, the CAG reviewed the scheme’s first three phases from 2015 to 2022 and found major problems in data control, beneficiary verification, monitoring of training centres and financial management.
The audit revealed that beneficiary records were often inaccurate. In several cases, the same bank account number, such as '11111111111', was linked to multiple beneficiaries. The CAG also found that photographs uploaded as proof of training at different centres were identical, raising doubts about whether training actually took place.
Training Centres Found Closed
During physical inspections in some states, the CAG found many training centres either locked or non-functional at the time of audit visits. In several centres, Aadhaar-enabled biometric attendance systems were not installed or were not working, even though these systems are mandatory under the scheme’s monitoring framework.
Poor Data Storage and Missing Records
The report pointed out that there was no clear policy for storing PMKVY data. As a result, important records such as photos and videos of training sessions, as well as documents related to beneficiaries’ education and work experience, were not properly maintained. Details like electronic identity information and bank account data of candidates, trainers and assessors were also incomplete or missing.
Questions Over Beneficiary Selection
CAG also raised concerns about how beneficiaries were selected. In many cases, candidates were enrolled without properly checking eligibility criteria such as age, education level and prior experience. The audit found no reliable system to confirm whether beneficiaries actually belonged to the scheme’s target groups, such as unemployed youth or school dropouts.
Weak Employment Outcomes
According to the report, only about 41 percent of candidates certified under short-term training and special projects managed to get jobs. Several training partners submitted incorrect documents as proof of placement. The audit also found problems in Recognition of Prior Learning (RPL) projects, including weak proposal checks, poor monitoring and submission of false documents by implementing agencies.
Financial Management Under Scanner
The audit highlighted delays in fund releases, underutilisation of funds at the state level and incorrect estimation of financial needs. In some cases, funds were withheld or transferred in violation of rules, and recoveries had to be made after audit objections.
Government’s Response
Responding to the findings, the Ministry of Skill Development and Entrepreneurship told the CAG that corrective steps were taken in later phases of the scheme. These include Aadhaar-based e-KYC, improved system validation and stronger digital monitoring through the Skill India Digital Hub. However, the CAG stressed that strict monitoring, stronger data controls and training aligned with labour market demand are still essential for effective implementation.
