GS 2: GovernanceGS 3: Economy

Meanwhile, flux in agency behind PMKVY: CEO exit, police complaint, Pg15

PMKVY faces turbulence: CEO ousted, police complaint filed over misappropriation, and CAG indicts scheme's functioning, raising governance concerns.

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Key Highlights:

  • Arun Kumar Pillai was appointed as the new CEO of NSDC in January 2026, following the abrupt removal of Ved Mani Tewari in May 2025.
  • In October 2025, the Centre blacklisted 178 skilling centers accredited under PMKVY, advising states to be cautious of proposals from these entities.
  • The Skill Development Ministry filed a police complaint on August 1, 2025, alleging misappropriation of funds by senior NSDC officials.
  • A CAG audit of PMKVY from 2015-2022, covering an outlay of Rs 14,450 crore, revealed irregularities including fake bank accounts and non-payment to training partners.

Detailed Insights:

  • The removal of the previous CEO was communicated through a public notice, and a committee of senior officials oversaw NSDC until the new appointment.
  • The police complaint alleged illegal appointments and extensions made without board approval, raising concerns about potential misuse of government funds.
  • The CAG report highlighted ineffective coordination between central and state departments and unreliable monitoring mechanisms within NSDC.
  • The audit cited poor oversight by the Ministry and deficiencies in skill center inspections, including non-functional biometric attendance devices.
  • 178 training partners were blacklisted across 18 states, with the highest numbers in Uttar Pradesh, Delhi, Madhya Pradesh, and Rajasthan.
  • An internal audit into financial irregularities within NSDC has been initiated following the former CEO’s exit, in addition to 41 FIRs filed by the police in states.

Key Concepts Involved:

  • NSDC (National Skill Development Corporation): An organization under the Ministry of Skill Development responsible for implementing skill development programs.
  • PMKVY (Pradhan Mantri Kaushal Vikas Yojana): A flagship skill development scheme of the Indian government aimed at providing vocational training and certification.
  • CAG (Comptroller and Auditor General): The constitutional authority in India responsible for auditing the accounts of the Union and State governments.
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