Lok Sabha Question No. 301 (UNSTARRED), answered on 2026-02-02
Subject: Misappropriation of Funds in Skill Development Schemes
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Rajesh Ranjan

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. †301

ANSWERED ON 02.02.2026

## MISAPPROPRIATION OF FUNDS IN SKILL DEVELOPMENT SCHEMES

†301. SHRI RAJESH RANJAN:

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

- (a) whether  it  is  a  fact  that  schemes  are  being  operated  in  the  name  of  skill development  through  the  Pradhan  Mantri  Kaushal  Vikas  Yojana,  DDU-GKY  and NSDC, using private training partners;
- (b) whether it  is  also  a  fact  that  approximately  10,000  crore  rupees  have  been misappropriated in the above schemes due to fake training, fake placements, nominal operation of training centres and a commission system; and
- (c) if  so,  whether  the  Government  is  considering  CBI  investigation  in  the  said matter?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

- (a) Under  the  Government  of  India ' s  Skill  India  Mission,  the  Ministry  of  Skill Development  and  Entrepreneurship  (MSDE)  conducts skilling,  re-skilling  and  upskilling programs through an extensive network of skill development centres/ institutes etc. under various schemes, viz. Pradhan Mantri Kaushal Vikas Yojana (PMKVY), Jan Shikshan  Sansthan,  National  Apprenticeship  Promotion  Scheme  and  Craftsman Training Scheme through Industrial Training Institutes (ITIs), to all the sections of the society across the country.

The MSDE is implementing its flagship Scheme Pradhan Mantri Kaushal Vikas Yojana (PMKVY) since 2015. Under PMKVY, skill training is imparted through Short Term Training (STT) and Re-skilling and Up-skilling through Recognition of Prior Learning (RPL) to youth across the country. As per PMKVY 4.0 guidelines, the training providers may  be  Pradhan  Mantri  Kaushal  Kendras  (PMKKs),  PMKVY  Training  Centres, Industrial  Training  Institutes  (ITIs),  Schools,  colleges,  Higher  Education  Institutes, training centres of other Ministries/Department, training centres of industry partners and  private  training  providers,  etc.  The  National  Skill  Development  Corporation (NSDC) is the implementing arm of the MSDE.

The Ministry of Rural Development implements the Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY), a placement-linked skill development programme for rural poor youth aged 15-35 years. It empowers the rural poor youth with employable skills and facilitates their participation in regular labour markets, thus providing them with jobs having regular monthly wages at or above the minimum wages. DDUGKY is implemented in project mode through Project Implementing Agencies (PIAs), which may include eligible government or semi-government bodies, NGOs registered with NITI Aayog, registered trusts/societies/companies/LLPs/cooperatives/SHGs and their federations,  and  other  entities  with  a  minimum  three-year  operational  experience, except start-ups.

(b) & (c) The Comptroller and Auditor General (CAG) conducted a Performance Audit of PMKVY covering its initial phases up to 2022 and flagged certain deficiencies in legacy systems relating to data validation, beneficiary details, assessor information, eligibility verification, and monitoring processes, largely attributable to limitations in IT controls and decentralized implementation prevalent at that time.

Taking  cognizance  of  these  observations,  the  Government  has  since  undertaken comprehensive corrective measures under PMKVY 4.0, including Aadhaar-based eKYC, face authentication and geo-tagged attendance, QR-coded digital certificates, real-time dashboards on the Skill India Digital Hub, strengthened assessor and training centre accreditation through NCVET, independent monitoring via Kaushal Samiksha Kendra,  revised  monitoring  guidelines  with  clear  KPIs,  and  a  robust  penalty  and recovery framework.

Disciplinary actions, including suspension, blacklisting, recovery of funds, and drastic steps have been taken wherever non-compliance was established, thereby institutionalising stronger accountability, verification, and oversight mechanisms under the scheme.

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