Lok Sabha Question No. 2 (STARRED), answered on 2025-12-01
Subject: Under-utilisation of Funds under PMKVY
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Sasikanth Senthil

## GOVERNMENT OF INDIA

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA STARRED QUESTION NO.  *2

ANSWERED ON -01/12/2025

## UNDER-UTILISATION OF FUNDS UNDER PMKVY

- *2. SHRI SASIKANTH SENTHIL:

Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state:-

- (a) whether the Government is aware of the persistent under-utilisation of allocated funds under successive phases of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and if so, the reasons identified for the same;
- (b) the  specific  measures  being  taken  by  the  Government  under  PMKVY  4.0  to ensure timely and full utilisation of funds, particularly at the State and district levels;
- (c) whether the  Government  has undertaken  any  evaluation  of  the  low  placement rates  reported  under earlier  rollouts  of  PMKVY and  if  so, the  details  of  the  corrective steps initiated to improve employment and self-employment outcomes;
- (d) the  manner  in  which  the  reforms  are  being  implemented  to  strengthen  the assessment and certification mechanisms to ensure better industry relevance, recognition, and employability of certified candidates; and
- (e) whether  the  Government  is  engaging  with  industry  bodies,  Micro,  Small  and Medium  Enterprises  (MSMEs),  and  State  skill  missions  to  align  training  content  with real-time job market demands, and if so, the details of such collaborations?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI JAYANT CHAUDHARY)

- (a) to (e) A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (A) TO (E) OF  LOK  SABHA STARRED  QUESTION  NO.  *2  ANSWERED  ON  01.12.2025  ASKED  BY  SHRI SASIKANTH  SENTHIL  REGARDING  UNDER-UTILISATION  OF  FUNDS  UNDER PMKVY

(a) Ministry of Skill Development and Entrepreneurship (MSDE) is implementing its flagship  scheme  Pradhan  Mantri  Kaushal  Vikas  Yojana  (PMKVY),  since  2015,  for imparting skill development training through Short-Term Training (STT) and up-skilling and re-skilling through Recognition of Prior Learning (RPL) to youth across the country.

The  financial  performance  under  successive  phases  of  the  Pradhan  Mantri  Kaushal Vikas Yojana (PMKVY) has been tabulated below:

( ₹ in crore)

|         | Financial Progress for PMKVY 1.0 (2015-16), PMKVY 2.0 (2016-20), PMKVY 3.0 (2020-22) & PMKVY 4.0 (2022-26)   | Financial Progress for PMKVY 1.0 (2015-16), PMKVY 2.0 (2016-20), PMKVY 3.0 (2020-22) & PMKVY 4.0 (2022-26)   | Financial Progress for PMKVY 1.0 (2015-16), PMKVY 2.0 (2016-20), PMKVY 3.0 (2020-22) & PMKVY 4.0 (2022-26)   | Financial Progress for PMKVY 1.0 (2015-16), PMKVY 2.0 (2016-20), PMKVY 3.0 (2020-22) & PMKVY 4.0 (2022-26)   |
|---------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------|
| FY      | Budget Estimate (a)                                                                                          | Revised Estimate (b)                                                                                         | Expenditure/ Utilized (c)                                                                                    | %Utilized [(c/b)*100]                                                                                        |
| 2015-16 | 1,500.00                                                                                                     | 1,500.00                                                                                                     | 1335.00                                                                                                      | 89.00%                                                                                                       |
| 2016-17 | 1,100.00                                                                                                     | 1,249.99                                                                                                     | 699.99                                                                                                       | 56.00%                                                                                                       |
| 2017-18 | 1,300.00                                                                                                     | 1,723.19                                                                                                     | 1,719.08                                                                                                     | 99.76%                                                                                                       |
| 2018-19 | 1,984.34                                                                                                     | 1,946.45                                                                                                     | 1,909.19                                                                                                     | 98.09%                                                                                                       |
| 2019-20 | 2,116.00                                                                                                     | 1,749.22                                                                                                     | 1,613.26                                                                                                     | 92.23%                                                                                                       |
| 2020-21 | 1,350.50                                                                                                     | 1,534.39                                                                                                     | 1,514.76                                                                                                     | 98.72%                                                                                                       |
| 2021-22 | 1,438.00                                                                                                     | 1,438.00                                                                                                     | 1,043.04                                                                                                     | 72.53%                                                                                                       |
| 2022-23 | 1,442.00                                                                                                     | 739.26                                                                                                       | 233.26                                                                                                       | 31.55%                                                                                                       |
| 2023-24 | 1,558.00                                                                                                     | 920.00                                                                                                       | 510.52                                                                                                       | 55.49%                                                                                                       |
| 2024-25 | 1,938.30                                                                                                     | 1,538.00                                                                                                     | 1,538.00                                                                                                     | 100.00%                                                                                                      |
| Total   | 15,727.14                                                                                                    | 14,338.50                                                                                                    | 12,116.10                                                                                                    | 84.50%                                                                                                       |

The  PMKVY 4.0 scheme was re-oriented  to  introduce  new-age,  industry-aligned  and integrated  courses,  requiring  fresh  design,  validation  and  alignment  with  emerging sectoral needs. During this transition, the Scheme was implemented in phases and has now been fully rolled out.

(b) To  ensure  timely  and  full  utilisation  of  funds  under  PMKVY  4.0,  MSDE  is implementing  a  convergence-driven  and  priority-based  strategy  for  qualitative  skilling. MSDE is actively engaging with Central Ministries and Departments to align training with national  initiatives  such  as  the  Vibrant  Village  Programme,  National  Green  Hydrogen Mission, and PM Surya Ghar Muft Bijli Yojana. Institutes of National Importance (IITs, IIMs,  IIITs,  NITs),  as  well  as  institutions  under  Central  Ministries  such  as  CIPET  and NIELIT,  along  with  reputed  industry  foundations,  are  being  onboarded  to  strengthen delivery  capacity.  The  scheme  prioritises  skilling  in  new-age  and  high-growth  sectors including  Semiconductors,  Green  Hydrogen,  Cybersecurity,  Telecom,  Automotive,  IT and  Electronics  as  well  as  State-specific  sectors  such  as  Tourism,  Textile,  Food Processing, Marine, and Construction. Further, MSDE is working closely with State Skill Development Missions (SSDMs) for timely submission of State Action Plans and with industry partners for accelerated target allocation to ensure full fund utilisation during FY 2025-26.

(c) Under  PMKVY  scheme,  placements  were  tracked  in  the  Short-Term  Training (STT) component in the first three versions of the Scheme - PMKVY 1.0, PMKVY 2.0 and PMKVY 3.0, implemented from FY 2015-16 to FY 2021-22. In these versions of PMKVY,  out  of  56.89  lakh  candidates  that  have  been  certified  in  STT,  24.3  lakh candidates  have  been  reported  placed  which  makes  the  overall  placement  rate  at 42.8%. Under PMKVY 4.0 which is under implementation since FY 2022-23, the focus is to empower our trained candidates to choose their varied career path through On-job Training and they are suitably oriented for the same.

Further, MSDE's  flagship  scheme  PMKVY was  evaluated  by  NITI  Aayog  in  October 2020  across  several  states.  As  per  the  study,  about  94  percent  of  the  employers surveyed reported they would hire more candidates trained under PMKVY. Further, 52 percent  of  the  candidates  who  were  placed  in  full  time/part  time  employment  and oriented under the RPL component received higher salary or felt that they will get higher salary compared to their un-certified peers.

A third-party impact evaluation of PMKVY was also conducted by the Indian Institute of Public Administration (IIPA). As per the evaluation, about 70.5% surveyed candidates received placement in their desired skill sector.

The  government  has  been  taking  several  steps  to  improve  employment  and  selfemployment outcomes. This include:

- i. Focus on New Age Skills like Industry 4.0, Web 3.0, AR/VR, Climate Change, Circular Economy, Green Economy, and Energy Transition.
- ii. Emphasis  on  Re-skilling,  and  Up-skilling  under  Recognition  of  Prior  Learning (RPL) through innovations in assessment, better monitoring.
- iii. Greater reliance on On-Job-Training (OJT) for better practical exposure to candidates.
- iv. Flexibility in course curriculums by introducing courses in partnership with industry.
- v. Cross  utilisation  of  available  infrastructure  with  the  educational  institutions  viz. ITIs/Schools/Colleges/Universities/Central and State Government  Institutions etc.
- vi. Training  aligned  to  National  Priorities  and  Policy  Announcements  focusing  on clusters  in  sectors  like  semiconductor,  5G,  AI,  Green  Hydrogen,  EV,  Solar Mission, Care, Tourism.

(d) Under PMKVY 4.0, a Standard Operating Procedure (SOP) has been created for Assessment  and  Certification  to  ensure  a  structured,  transparent,  and  accountable process, enhancing efficiency and credibility. By integrating clear timelines, automated workflows, and compliance mechanisms through Skill India Digital Hub (SIDH), the SOP streamlines operations while aligning with industry needs. These standardized procedures  improve  candidate  experience  and  strengthen  quality  assurance.  Regular monitoring  and  updates  will  ensure  adaptability  to  best  practices,  reinforcing  PMKVY 4.0's commitment to high -quality skill development and employability

Further, to ensure credibility and industry relevance of certifications, PMKVY follows a rigorous process involving orientation, standardised assessments by third-party assessors,  and  digital  certificate  issuance  aligned  with  National  Skill  Qualification Framework (NSQF) levels. Certificates are embedded with QR codes and issued via the

Skill India Digital platform, enabling real-time verification by employers. The curriculum and  assessments  are  developed  in  consultation  with  Awarding  Bodies  and  Industry bodies. Continuous Monitoring and Evaluation (M&E) systems are in place to assess implementation quality. These steps collectively ensure that the certifications are trusted by employers and meet industry-accepted standards.

Further,  to  improve  the  implementation  of  the  Scheme  qualitatively,  MSDE  has established a comprehensive, technology-driven and multi-layered monitoring system to ensure  transparent,  accountable  and  high-quality  implementation  of  PMKVY  4.0.  A strong  digital  backbone  -  anchored  in  eKYC  and  Aadhaar-based  authentication  enables  secure  onboarding  of  all  stakeholders,  while  Aadhaar-enabled  biometric attendance,  including  face  authentication  and  geo-tagged  records,  ensures  real-time validation  of  training  activities.  The  SIDH  platform  tracks  the  complete  candidate lifecycle from enrolment to post-training outcomes and provides integrated dashboards for data-driven decisions. To further strengthen oversight, the Ministry has established the Kaushal Samiksha Kendra, which conducts continuous virtual reviews. Additionally, physical inspections are conducted through MSDE-directed state and district coordinators and geo-tagged Monitoring App inspections by National Skill Development Corporation (NSDC).

(e) The Government is committed to align training content with real-time job market demands and improve employability linkages under PMKVY by fostering demand-driven skilling and close collaboration with the industries, MSME  clusters, business associations,  private  sector  employers,  and  State/UT  skill  missions.  These  include demand mapping through skill gap studies, District Skill Development Plans (DSDPs), and active  collaboration  with  Sector  Skill  Councils  (SSCs)  to  design  industry-relevant training.  Key  efforts  include  organizing  industry  consultations  to  gain  deeper  insights into sector-specific demands and challenges, identifying high-demand and emerging/New  Age  skill  areas,  and  involving  industries  as  Awarding  Bodies.  Various industries/ industry bodies and Sector Skill Councils are being engaged under PMKVY 4.0. for aligning training content with real-time job market demands.

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