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Analyzing the Recent CAG Audit of Kaushal Vikas Yojana

Key Insights and Government Reforms in Skill Development

Analyzing the Recent CAG Audit of Kaushal Vikas Yojana

  • 20 Dec, 2025
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Overview of Kaushal Vikas Yojana

The Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is a flagship skill development initiative launched by the Government of India in July 2015 under the Skill India Mission. This scheme aims to enhance the employability of Indian youth by equipping them with industry-relevant skills.

Implemented by the Ministry of Skill Development and Entrepreneurship (MSDE), PMKVY focuses on short-term training, Recognition of Prior Learning (RPL), certification, and placement support. The scheme has been executed in three phases: PMKVY 1.0 (2015-16), PMKVY 2.0 (2016-20), and PMKVY 3.0 (2021-22).

Key Features of PMKVY

One of the hallmark features of PMKVY is that it offers free skill training to eligible youth across various sectors, including construction, manufacturing, healthcare, electronics, retail, and services. Training is conducted through approved Training Centres and Industry Partners.

  • Outcome-Based Funding: Payments to training partners are linked to successful certification and placement of candidates.
  • Monetary Rewards: Each certified candidate is eligible for a monetary reward of Rs. 500, transferred through Direct Benefit Transfer (DBT).
  • Digital Monitoring: The scheme emphasizes digital monitoring via the Skill India Portal (SIP) and Aadhaar-based authentication.

Achievements of the Scheme

Since its inception, PMKVY has evolved into one of the largest skill development programs globally. Between 2015 and 2022, it had a cumulative financial outlay of approximately Rs. 14,450 crore. Official data indicates that around 1.32 crore candidates were targeted for training, with about 1.1 crore successfully certified.

PMKVY has significantly contributed to expanding India's skill ecosystem by:

  • Creating a nationwide network of training centres.
  • Standardizing skill certification through the National Skills Qualification Framework (NSQF).
  • Promoting Recognition of Prior Learning for informal workers.
  • Integrating skill development with Digital India and DBT initiatives.

Recent Findings from the CAG Audit

A recent audit report by the Comptroller and Auditor General (CAG) has raised alarms regarding the implementation of PMKVY. The report, presented in the Lok Sabha, identified significant deficiencies in the scheme's operation from 2015 to 2022.

Key findings included:

  • Over 94% of candidate records lacked valid bank account details, raising concerns about beneficiary identification.
  • Payouts to more than 34 lakh certified candidates were pending long after training completion.
  • Only 18.44% of candidates received successful DBT payments under PMKVY 2.0 and 3.0.
  • Instances of shut training centres being reported as active and reused photographs for multiple beneficiaries across states.

Government Response and Reforms

In response to the CAG's findings, the Ministry of Skill Development and Entrepreneurship has pledged to strengthen the scheme. Key reforms include:

  • Aadhaar-authenticated e-KYC and face authentication.
  • Geo-tagged attendance and QR-coded digital certificates.
  • Enhanced inspections through Kaushal Samiksha Kendras.
  • A penalty framework for non-compliant entities.

These measures are aimed at ensuring transparency, accountability, and better tracking of beneficiaries.

Frequently Asked Questions (FAQs)

Q1. What is the main objective of the Kaushal Vikas Yojana?
Answer: The primary objective of the Kaushal Vikas Yojana is to improve the employability of Indian youth by providing them with industry-relevant skills through various training programs.

Q2. How many phases has PMKVY undergone?
Answer: PMKVY has been implemented in three phases: PMKVY 1.0 (2015-16), PMKVY 2.0 (2016-20), and PMKVY 3.0 (2021-22).

Q3. What are the key features of PMKVY?
Answer: Key features of PMKVY include free skill training, outcome-based funding, monetary rewards for certified candidates, and digital monitoring through the Skill India Portal.

Q4. What did the CAG report reveal about PMKVY?
Answer: The CAG report highlighted serious implementation gaps, including invalid bank account numbers and pending payouts for certified candidates, indicating significant deficiencies in the scheme.

Q5. What reforms has the government introduced in PMKVY?
Answer: The government has introduced reforms such as Aadhaar-authenticated e-KYC, geo-tagged attendance, QR-coded certificates, and enhanced inspections to improve transparency and accountability.

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