NSDC crackdown continues: Current, ex-staffers get notices for PMKVY 'lapses', Pg1

Key Highlights:

• The National Skill Development Corporation (NSDC) has issued show-cause notices to approximately 20 current and former employees over alleged irregularities in the Pradhan Mantri Kaushal Vikas Yojana (PMKVY).
• These irregularities were flagged by the Comptroller & Auditor General (CAG) in its report, which was tabled in Parliament in December 2025.
• The CAG audited three phases of PMKVY from 2015 to 2022, covering an outlay of Rs 14,450 crore and a target of training 1.32 crore candidates.
• The notices warn of referral to investigating agencies if financial misconduct and criminal culpability are found.

Detailed Insights:

• The NSDC, which implements PMKVY on behalf of the Ministry of Skill Development and Entrepreneurship (MSDE), initiated this crackdown following systemic failures.
• Charges against employees include failure to align job roles with market demand, verify accreditation of training centers, ensure Aadhaar-based attendance, and maintain data integrity on the Skill India Portal.
• The CAG report highlighted issues such as fake bank accounts, duplicate identification details for beneficiaries, and non-payment to training partners for 34 lakh candidates.
• The audit also criticized the "unreliable" monitoring mechanisms of NSDC and "poor monitoring and oversight" by the MSDE.
• This action follows the abrupt removal of NSDC's then-CEO in May 2025 and a police complaint filed by the MSDE in August 2025 regarding alleged "misappropriation" of funds within NSDC.
• Current NSDC CEO Arunkumar Pillai stated that corrective and accountability measures are being implemented in response to the CAG observations.

Key Concepts Involved:

• National Skill Development Corporation (NSDC): A not-for-profit public limited company established as a Public Private Partnership (PPP) under the Ministry of Skill Development and Entrepreneurship (MSDE) to promote skill development by funding and catalyzing vocational training initiatives.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): A flagship skill certification scheme of the Government of India, launched in 2015 by the MSDE, aiming to provide free, industry-relevant skill training to Indian youth to enhance employability.
• Comptroller & Auditor General (CAG): A constitutional authority under Article 148 of the Indian Constitution, responsible for auditing the accounts of the Union and State Governments and reporting financial irregularities to Parliament and State Legislatures.
• Ministry of Skill Development and Entrepreneurship (MSDE): A nodal ministry of the Government of India established in 2014 to coordinate all skill development efforts, bridge the demand-supply gap in skilled manpower, and foster entrepreneurship.
• Aadhaar: A 12-digit unique identification number issued by the Unique Identification Authority of India (UIDAI), used for biometric authentication in systems like attendance to ensure transparency and prevent manipulation.
• Recognition of Prior Learning (RPL): An initiative under PMKVY that aims to certify skills acquired through informal learning or work experience, providing formal recognition to the uncertified workforce.