Lok Sabha Question No. 151 (UNSTARRED), answered on 2025-12-01
Subject: Governance Issues in NSDC
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri K Sudhakaran

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 151

ANSWERED ON 01.12.2025

## GOVERNANCE ISSUES IN NSDC

## 151. SHRI K SUDHAKARAN:

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

- (a)   whether  the  Government  has  taken  cognizance  of  the  governance  crisis  in  the National Skill Development Corporation (NSDC) including the police complaint filed in August 2025 against senior NSDC officials for alleged misappropriation of public funds and, if so, the details thereof;
- (b)   whether  the  Chief  Executive  Officer  (CEO)  of  NSDC  was  removed  in  May  2025 following complaints of irregular appointments made without ministerial consultation, and if so, the reasons recorded for such action;
- (c)   whether multiple FIRs have been registered against training partners for falsifying attendance  records  under  the  Pradhan  Mantri  Kaushal  Vikas  Yojana  resulting  in  the blacklisting of about 40 entities; and
- (d)  if  so,  the  comprehensive  measures  taken  by  the  Government  for  recovery  of misappropriated  funds,  initiation  of  criminal  prosecutions,  structural  and  institutional reforms within NSDC,  and  any  proposal  for  an  independent  inquiry  to restore transparency, credibility and efficiency in the skilling ecosystem?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

(a) & (b):  National Skill Development Corporation (NSDC) is established as a not-forprofit  public  limited  company  under  section  25  of  the  Companies  Act,  1956  (now corresponding to section 8 of the Companies Act, 2013). It operates as a unique Public Private Partnership (PPP) model under the Ministry of Skill Development & Entrepreneurship (MSDE), with 49% of the share capital held by the government and 51% by the private sector. The apex authority for any administrative decisions of NSDC is the Board of Directors of NSDC. The Central Government appoints up to six Directors, while  private  sector  shareholders  appoint  up  to  nine  Directors.  NSDC  Board,  in  its meeting held on 15th May, 2025, took a decision to remove the then-officiating CEO of NSDC, in  accordance  with  the  organization's  governance  framework  and  established procedures , which doesn't fall under the administrative control of MSDE .

(c) & (d):  To enhance the quality, transparency, and uniformity in the implementation of PMKVY, the Government has undertaken several measures from time to time. Oversight mechanisms  have  been  strengthened  through  technology-enabled  systems  such  as Direct Benefit Transfer, registration process on Skill India Digital Hub (SIDH) ensures eKYC compliance, Aadhaar based authentication of candidate credentials, mobile number authentication, attendance through Face-Authentication and Aadhaar Enabled Biometric Attendance System (AEBAS), maintaining of all Management Information System (MIS) through  SIDH  portal  to  check  duplication  of  candidates,  etc.  A  structured  grievance redressal framework, performance audits, impact assessments, and third-party evaluations  have  been  institutionalized  to  curb  malpractices,  including  falsification  of attendance records. Further, CAG has to conduct the Audit of NSDC, the implementing agency of PMKVY scheme for the year 2017-18 onwards.

Under PMKVY 4.0, training is being  conducted only  through  accredited and  affiliated Training Centres (TCs). These centres are monitored through both physical and virtual modes.  Strict  legal  and  administrative  actions  including  filing  of  FIRs,  blacklisting, suspension, and financial recovery are initiated against non-compliant TCs involved in activities such as falsification of attendance records.  As on 31.10.2025, a total of 178 Training Centres have been blacklisted under PMKVY 4.0 for non-adherence to scheme guidelines. Further, 41 FIRs have already been registered in matters involving serious irregularities, including falsification of attendance records.

Additional  reforms  such  as  real-time  call  validations,  surprise  centre  visits,  virtual verification with geotagged evidence, and candidate feedback through the NIC-developed Central Communication Layer (CCL) have also been implemented.

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