The audit report evaluated the first three phases of PMKVY (from 2015-22), highlighting significant operational and financial challenges.

Key Issues highlighted by CAG audit report

• Skill-Gap Discrepancies: Training is not consistently aligned with the skill requirements identified in the National Policy for Skill Development and Entrepreneurship (NPSDE).
• Underutilization of Funds: approximately 20% of released funds for the State components remained unspent as of March 2024.
• Data Integrity: Serious lapses in the Skill India Portal (SIP), where approx. 95% candidate information (email id, bank account, etc.) was often invalid or missing.

• Technical Qualification Lapses: In roles requiring prior technical education, 85.40% of certified candidates possessed only basic literacy.
• Fictitious Agencies: Certifications were awarded through agencies that were either non-existent or ineligible.
• Other: Low Placement Rates (Only 41%), Duplicate Records (bank accounts or identical photographs), Educational Deficiencies, Poor centre-state coordination, etc.

Recommendations by CAG

• Align its skill trainings with skill-gaps identified in job-roles across sectors and States in line with market demand. 
• Strengthen the  PMKVY process by expediting the preparation of the envisaged National Skill Development Plan (NSDP).
• Strict enforcement of the IT controls prescribed under PMKVY 4.0 and consider putting in place a data retention policy.
• Strengthen oversight mechanism and ensure strict enforcement of system validation checks.
• Expedite the mechanism for integration of Unified District Information System for Education (UDISE) data with PMKVY.