CAG Finds PM Skill Scheme Riddled With Gaps, Low Job Outcomes

A performance audit carried out by the Comptroller and Auditor General (CAG) has raised serious concerns regarding the implementation of the Centre’s flagship skilling programme, the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), pointing to widespread data flaws, weak monitoring, low placement outcomes and significant underutilisation of funds.

The audit, which examined multiple phases of the scheme, found that critical beneficiary details—including bank accounts, mobile numbers and email addresses—were either missing, invalid or repeatedly duplicated in large numbers, casting doubts over both transparency and the integrity of financial transfers.

According to the CAG report, in more than 94 per cent of cases, bank account fields of beneficiaries were recorded as zero, left blank or marked “null”. Even among the remaining records, thousands of account numbers were found to be repeated across multiple candidates, while others contained obviously incorrect entries such as strings of identical digits, placeholder numbers or even plain text. The audit observed that this made it impossible to reliably verify the identity of beneficiaries or track benefit transfers.

While the Ministry of Skill Development and Entrepreneurship (MSDE) told auditors that Aadhaar-linked payments had reduced the need to record bank details, the report noted that as recently as 2023, direct benefit transfers were processed for barely a quarter of candidates and were successful for less than one-fifth. By October 2024, only around two-thirds of beneficiaries had reportedly received payments through DBT.

Digital Records in Disarray

The audit also exposed serious weaknesses in digital records. Thousands of email addresses were found to be fabricated or generic—ranging from simple placeholders such as “[email protected]
” to numeric strings—while many entries were marked merely as “migrated data”. Mobile numbers, too, were frequently invalid, with large volumes either shorter than the mandated ten digits or following repetitive patterns such as “1111111111”. Even in the most recent dataset examined, hundreds of mobile numbers remained invalid and thousands were duplicated.

“These deficiencies indicate that the promised IT controls have not been effectively implemented,” the CAG noted, adding that such systemic lapses undermined the credibility of beneficiary databases.

Duplicated Images, Questionable Certifications

Equally troubling were findings related to the scheme’s certification processes. While guidelines require high-resolution images and video documentation of training and assessments, the audit discovered repeated use of identical photographs across different batches and even across states.

In one instance, a private entity—Neelima Moving Pictures—was found to have certified more than 33,000 participants across eight states within a span of less than a year for 21 job roles. During the audit, the firm was reportedly no longer operational. Examination of batch records revealed that the same photographic evidence had been reused to support certifications in multiple locations. Subsequent data furnished by the ministry still showed missing Aadhaar details and repeated images for dozens of candidates.

Auditors also found that several registered training centres were not functional. Inspections across selected states revealed closed facilities even as they continued to appear in official records as active centres delivering skill programmes.

Low Placements, Weak Market Linkages

The report questioned the scheme’s ability to deliver meaningful employment outcomes. Despite certifying over 56 lakh candidates across more than 700 job roles, overall placement stood at only 41 per cent. Training was heavily concentrated in a narrow set of occupations, with nearly 40 per cent of certifications limited to just ten job roles across a few sectors.

The audit noted that market demand assessments were either absent or poorly executed. In states such as Assam, job roles that had shown strong placement results in earlier phases were not continued in later iterations of the scheme. In Bihar, prescribed strategies such as employer mapping, industry tie-ups and employment planning were largely ignored. Odisha, too, was found to have prepared employment plans without evaluating their real placement potential.

While the ministry cited post-COVID economic disruptions as a factor, the CAG observed that structural weaknesses in planning and execution predated the pandemic.

Funds Lying Idle

The audit further flagged substantial underutilisation of funds. Of over Rs 1,380 crore released to states under PMKVY during 2016–24, more than Rs 277 crore remained unspent as of March 2024. Alarmingly, even before the pandemic, utilisation was poor: between 2016 and 2019, barely Rs 150 crore was spent out of nearly Rs 758 crore released.

The findings raise questions about financial planning, monitoring and the actual reach of a scheme that was launched in 2015 with the stated goal of making India’s workforce “industry-ready”. Over three phases, PMKVY has been allotted around Rs 4,450 crore to train or certify more than 1.3 crore candidates.

ALSO READ: CAG Flags Massive Budget Misuse; Congress Accuses Assam CM of ‘Fiscal Anarchy’