The PAC chaired by K.C. Venugopal has taken a strong view against the flagship skill‑development programme, the PMKVY. Using the audit report of the CAG, the committee said the scheme largely trained candidates for jobs that have little market demand.
Key Developments
- Audit reveals that 40% of trainees were placed in low‑demand sectors such as apparel, electronics and retail.
- High‑growth sectors like food processing received only 0.48% of trainees; tourism only 3.8%.
- Overall placement rate stands at 41%, far below the scheme’s objectives.
- Instances of fraud uncovered, e.g., a non‑existent firm Neelima Moving Pictures received certification for 33,493 participants.
- Government defends implementation by blaming State governments, the designated implementing agencies.
Important Facts
Since its launch in July 2015, PMKVY has gone through three phases with a total outlay of about ₹14,450 crore. Of this, ₹10,194 crore was released and ₹9,261 crore spent. The scheme aimed to certify 1.32 crore candidates; it has so far certified 1.10 crore.
The programme is administered by the MSDE. Despite the large financial outlay, the audit points to poor alignment between training and industry demand.
UPSC Relevance
Understanding the PMKVY episode helps aspirants in several ways:
- It illustrates the role of parliamentary oversight (PAC) in evaluating large‑scale welfare schemes.
- Shows how audit institutions like the CAG can expose systemic flaws and fraud.
- Highlights the challenge of skill training aligning with labour‑mark