Corruption in the Governance of Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

pmkvy corruption

Syllabus: GS2/Governance; GS4/ Ethics 

In News

  • The Ministry of Skill Development and Entrepreneurship (MSDE) recently blacklisted 178 Training Partners (TPs) and Training Centres (TCs) for large-scale irregularities under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
    • The issues included fake documentation, absentee students, inflated bills, and non-existent centres.

About PMKVY

  • Launched: 2015 under the Ministry of Skill Development and Entrepreneurship (MSDE).
  • Implementing Agency: National Skill Development Corporation (NSDC).
  • Objective: To provide skill training and certification to youth to enhance employability.
  • Beneficiaries (till June 2025): Over 1.64 crore youth trained.
  • Budget (FY 2024–25): ₹1,538 crore.
  • Latest Phase: PMKVY 4.0 (2022–2026) – focuses on industry-linked courses, digital monitoring, and local-level skill hubs.

Example

  • Similar corruption patterns were seen earlier in Sarva Shiksha Abhiyan ghost schools and MGNREGA fake job cards — showing a broader structural problem in scheme governance.

Governance and Ethical/Administrative Concern

  • Integrity & Accountability: Public funds meant for youth empowerment were diverted for private gain, breaching fiduciary trust.
  • Transparency: Denial of information under RTI citing “confidentiality” reflects opacity in public administration.
  • Public Interest vs Private Profit: The PPP model turned exploitative without adequate checks, violating the principle of public service orientation.
  • Professional Ethics: Officials and partners ignored due diligence, honesty, and fairness—core civil service values.
  • Justice and Equity: Genuine trainees were deprived of opportunities due to diversion of resources to fake beneficiaries.
  • Moral Hazard: Weak punishment mechanisms encouraged repetition of misconduct.

Implications

  • Economic: Wastage of taxpayer money; failure to bridge India’s skill gap.
  • Social: Erosion of trust among youth and employers in government certifications.
  • Administrative: Freeze on training activities in several districts; disruption of employment pipeline.
  • Reputational: Weakens India’s Skill India Mission and undermines the Viksit Bharat 2047 vision.

Way Forward

  • Strengthening Monitoring and Evaluation: 
    • Introduce Aadhaar-based biometric attendance and geo-tagging of trainees.
    • Third-party audits of TCs by independent agencies like CAG-empanelled firms.
  • Reforming the NSDC Governance Structure:
    • Separate implementation and regulation wings to avoid conflict of interest.
    • Ensure parliamentary oversight and annual performance audits.
  • Promoting Transparency: 
    • Make public disclosure of blacklisted entities, inspection reports, and fund recovery status.
    • Strengthen RTI compliance and digital dashboards.
  • Linking Funds to Outcomes:
    • Adopt an Outcome-Based Funding Model – release payments only after verified placement and skill certification.

Source: TH

 

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