Need for Structural Reforms in India’s Skilling Ecosystem

Syllabus: GS3/ Economy

Context

• The Ministry of Skill Development and Entrepreneurship (MSDE) has blacklisted 178 Training Partners (TPs) and Training Centres (TCs) under Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0, citing non-adherence to operational norms.

Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• PMKVY is the flagship skill certification scheme launched under the Skill India Mission to enhance employability among youth.
• The scheme is implemented by the National Skill Development Corporation (NSDC) under the Ministry of Skill Development and Entrepreneurship.
• It seeks to provide industry-relevant short-term training, Recognition of Prior Learning (RPL), and special projects.
  • Training programmes generally range between 300 to 600 hours, depending on sectoral requirements.
• PMKVY 4.0, launched in 2022, aims to integrate emerging sectors such as green jobs, drones, AI, robotics, and digital skills while strengthening monitoring systems.

Nature of Irregularities Identified

• Several training centres were found to be closed during official working hours even though attendance had been recorded through the biometric system
• There were alleged manipulations of Aadhaar-based biometric attendance systems.
• Certain centres were found to have operational irregularities, including the unauthorised merging of two or more training centres within a single premises, which was in violation of prescribed guidelines.
• There were failures to adhere to infrastructure and training norms prescribed under PMKVY guidelines.

Impacts of the Identified Irregularities

• Erosion of Institutional Credibility: The detection of biometric manipulation, undermines the credibility of PMKVY and weakens public trust in government-funded skilling initiatives. 
• Misallocation of Public Funds: Fraudulent attendance marking and non-compliance with norms leads to improper release of funds, resulting in direct financial losses to the exchequer. 
• Reduced Youth Confidence in Skill Certification: Youth may become reluctant to enrol in short-term training programmes if employment outcomes remain uncertain.
• Impact on India’s Demographic Dividend: Governance lapses and structural inefficiencies reduce the ability of skilling programmes to convert demographic advantage into productive economic output.

Technological and Policy Measures to Improve the System

• AI-Based Attendance Analytics tools can be deployed to detect abnormal attendance patterns, such as sudden spikes in biometric entries or repeated clustering of attendance at unusual hours.
• Mandatory CCTV recording with secure cloud storage during training hours can provide visual verification during random audits.
• Blockchain-Based Certification: Blockchain technology can be used to issue tamper-proof digital certificates that can be verified by employers, ensuring credibility and reducing duplication.

Way Ahead

• Shift Towards Outcome-Based Evaluation: Evaluation metrics should prioritise sustained employment, wage progression, and employer satisfaction rather than enrolment numbers alone.
• Establish Robust Grievance Redressal Mechanisms: A transparent appellate mechanism should be institutionalised to address disputes related to inspections, penalties, and blacklisting decisions.
• Enhance Capacity Building: Regular trainer certification, digital infrastructure support, and quality audits should accompany compliance monitoring.
• Differentiate Between Fraud and Procedural Lapses: Policy responses must proportionately distinguish between deliberate financial misconduct and minor procedural deviations to maintain fairness.

Source: IE