In what officials are calling one of the largest internal crackdowns since the program’s launch, the Ministry of Skill Development and Entrepreneurship (MSDE) has blacklisted 178 training partners (TPs) and training centres (TCs) under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) after uncovering widespread misuse of funds and fake enrolments.
The ministry’s letter to state governments, reviewed by The Indian Express, cites absentee students, falsified attendance records, and non-existent training facilities among the violations. Investigations revealed that some partners claimed government reimbursements for ghost trainees, while others ran “paper-only” institutions without classrooms, trainers, or equipment.
The National Skill Development Corporation (NSDC), which implements PMKVY, has also begun recovering disbursed payments and lodging FIRs against erring entities.
Uttar Pradesh, Delhi, and Madhya Pradesh Lead Default List
Of the 178 blacklisted partners, Uttar Pradesh accounts for 59, the highest in the country, followed by Delhi (25), Madhya Pradesh (24), and Rajasthan (20). Other states, including Jammu & Kashmir, Maharashtra, Chhattisgarh, Telangana, Mizoram, and Tamil Nadu, reported single defaulters.
In 122 cases, the identity of the training partner differed from the training centre—a red flag suggesting proxy operations—while in 56 cases, both were the same entity.
A senior ministry official confirmed that all training activity at these centres has been frozen, pending further investigation.
“Almost the entire PMKVY activity has come to a standstill in several districts,” one regional director said. “We are awaiting instructions on how to proceed.”
Corruption and Oversight Failures at the NSDC
The blacklisting marks another chapter in the troubled history of the National Skill Development Corporation, India’s apex skilling agency. The NSDC has faced a series of controversies in recent months, including the ouster of its CEO, Ved Mani Tewari, in May 2025, and a police complaint in August against two senior officials accused of mishandling government property and funds.
Despite repeated RTI requests, the NSDC has refused to disclose details of defaulting centres, citing “confidentiality” and “ongoing investigations.” However, ministry insiders say the current action followed months of surveillance and audit reports from regional directorates.
Launched in 2015 to equip India’s youth with employable skills, PMKVY 4.0, the current phase of the scheme, had allocated ₹1,538 crore for 2024–25 and claimed to have trained over 1.64 crore people since inception. Yet, the new revelations expose structural weaknesses in its monitoring systems—particularly the reliance on self-reported data and third-party verification by the same agencies now under scrutiny.
A Shadow Over India’s Skilling Ambition
The revelations come at a time when India’s skill development mission is central to its demographic and economic goals. The program, once hailed as a cornerstone of youth empowerment, now faces credibility challenges that could derail public trust and international partnerships.
“The rot lies not in the idea of skilling, but in the accountability chain,” said a former NSDC advisor. “Private partners treated public funds as personal grants, and oversight mechanisms either failed or looked away.”
The ministry’s latest directive has instructed all state missions to re-evaluate pending proposals under any government skilling scheme. Legal proceedings and fund recoveries have begun, but officials acknowledge the task ahead is enormous.
As the government prepares for PMKVY’s next phase, the challenge will be not just training India’s youth—but restoring faith in a system built to empower them.
