NSDC in Crisis: CEO Ouster, Police Complaint, and CAG Audit Highlight PMKVY Woes
The turbulent trajectory of the National Skill Development Corporation (NSDC), the agency overseeing India's flagship Pradhan Mantri Kaushal Vikas Yojana (PMKVY), starkly illustrates the deep-seated challenges plaguing the nation's skilling mission. Recent developments, including the sudden exit of its CEO, a police complaint alleging financial misappropriation, and a scathing audit by the Comptroller and Auditor General (CAG), have cast a shadow over the organization's operations and governance.
Leadership Flux and Governance Concerns
In a significant shake-up, NSDC appointed Arun Kumar Pillai as its new Chief Executive Officer last month, following the abrupt ouster of former CEO Ved Mani Tewari in May 2025. Tewari's removal was communicated through an unusual public notice, stating he was no longer associated with NSDC, and a committee of senior officials was tasked with interim oversight. This leadership vacuum coincided with heightened scrutiny, as the Ministry of Skill Development filed a police complaint in August 2025, alleging that certain senior officials had made illegal appointments and extensions without board approval, raising fears of potential misappropriation of government funds.
CAG Audit Uncovers Widespread Irregularities
The CAG's comprehensive audit of three PMKVY phases from 2015 to 2022, covering an outlay of Rs 14,450 crore and targeting 1.32 crore candidates, revealed alarming deficiencies. Key findings included:
- Fake bank account numbers linked to beneficiaries, undermining financial integrity.
- Duplication of identification details across candidates, suggesting data manipulation.
- Non-payment to training partners for 34 lakh candidates, disrupting skilling efforts.
- Poor coordination between Central and State departments, described as "not effective."
- Unreliable monitoring mechanisms, with 36% of emails to beneficiaries undelivered in a sample survey.
The audit also highlighted inadequate inspection of skill centers, including non-functional biometric attendance devices, and criticized the Ministry's oversight as "poor."
Blacklisting and Ongoing Investigations
In October 2025, the Centre blacklisted 178 skilling centers accredited under PMKVY, advising states to exercise caution with these entities. Uttar Pradesh recorded the highest number of blacklisted centers, followed by Delhi, Madhya Pradesh, and Rajasthan. Alongside 41 FIRs filed by police in various states, an internal audit into financial irregularities within NSDC has been initiated post the former CEO's exit, indicating ongoing investigations into governance lapses.
NSDC has not responded to requests for comment, leaving many questions unanswered about the future of India's skilling initiatives. As the organization navigates this period of uncertainty, the need for robust reforms and transparent governance has never been more critical to ensure the success of PMKVY and the empowerment of millions of Indian youth.
