CAG Audit Exposes PMKVY Irregularities

Summary Notes on Pradhan Mantri Kaushal Vikas Yojana (PMKVY) Audit Findings

Introduction to PMKVY:

• Launch Date: July 2015.
• Objective: To provide skills training and certification to combat youth unemployment.
• Outlay: Approximately ₹14,450 crore over three phases (2015-2022).
• Targets: To skill 1.32 crore candidates.
• Unemployment Rate: As of May 2025, 15% among youth aged 15-29.

Audit Findings by CAG (Comptroller and Auditor General of India):

1. Implementation Issues:

   • Bank Account Irregularities:
     • 94.53% (90,66,264) of participants had issues with bank account details (i.e., fields were zero, null, or blank).
     • 12,122 unique bank account numbers were reused across 52,381 participants.
     • Instances of nonsensical account numbers like “11111111111” were identified.
   • Pending Payouts: More than 34 lakh certified candidates are still awaiting payments after completing their training.

2. Data Processing:

   • Direct Benefit Transfer (DBT):
     • Processed for only 25.58% of certified candidates.
     • Successful payouts were processed for only 18.44% of candidates.
     • As of October 2024, 63.75% of total participants (61.14 lakh) have received payouts.

3. Training Centre Operations:

   • Many training centres reported closures, impacting the provision of skills training.

4. Verification and Accountability:

   • Email Feedback Issues: A significant 36.51% email delivery failure rate was noted with only a 3.95% response rate from participants.
   • Cases of multiple beneficiaries using the same photographs for training certification were reported.

PMKVY Guidelines:

• Candidates required to submit valid contact details, including bank account information, during the registration process.
• The ministry was expected to facilitate the opening of bank accounts if candidates lacked them to ensure accurate data capture.

Government Response:

• The ministry stated it has made significant improvements to the scheme:
  • Introduced technology-enabled monitoring and Aadhaar-authenticated e-KYC.
  • Mandated geo-tagged attendance and the use of QR-coded digital certificates.
  • Implemented a robust penalty framework and strict verification for financial disbursals.
  • Enhanced oversight through the Skill India Digital Hub for better data integrity and beneficiary tracking.

Future Steps:

• Continuous monitoring through large-scale inspections.
• Strengthened accountability measures to prevent recurrence of issues reported in the audit.

Importance of Findings:

• Highlights critical gaps in the execution of a flagship government initiative aimed at alleviating youth unemployment.
• Underlines the necessity for robust data management and verification processes in government schemes to ensure efficiency and transparency.

Conclusion:

• The CAG report emphasizes the need for rectification and more stringent governance in implementing PMKVY to meet its objectives effectively and transparently.