Relevance for UPSC: GS-II (Governance, Accountability) | GS-III (Human Capital)
Source: Indian Express ; CAG Audit Report; Parliamentary proceedings

Context

The Comptroller and Auditor General of India (CAG) has highlighted serious shortcomings in the implementation of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) during 2015–2022. PMKVY is India’s flagship skill development scheme aimed at improving youth employability through short-term training and certification.

Key Gaps Flagged by CAG

• Financial and data irregularities: Use of dummy bank accounts, duplicate beneficiary records, and pending payments to over 34 lakh candidates.
• Weak monitoring: Funds released to non-functional training centres; inadequate verification of training quality and placements.
• Poor outcomes: High certification numbers but limited job placement, reflecting weak linkage with labour market demand.

Why It Matters

• Governance: Raises concerns about leakage and accountability in DBT-based welfare schemes.
• Employment: Questions the effectiveness of certification-driven skilling in addressing youth unemployment.
• Public finance: Highlights the need for outcome-based evaluation of large social sector schemes.

Way Forward

• Shift from certification-focused to outcome-based skilling.
• Strengthen industry linkage and placement tracking.
• Enforce strict accountability for training partners through audits and penalties.

Q. With reference to PMKVY, consider the following statements:

1. It is implemented by the Ministry of Skill Development and Entrepreneurship.
   
2. The CAG audits its financial and performance aspects.
   
3. Recognition of Prior Learning is a component of the scheme.

Which of the statements are correct?
A. 1, 2 and 3
B. 1 and 3 only
C. 2 only
D. 1 and 2 only