The Ministry of Skill Development and Entrepreneurship has filed a complaint with Delhi Police against NSDC officials alleging financial misappropriation, raising concerns over governance lapses in India’s premier skilling agency.

About National Skill Development Corporation (NSDC)

• Establishment: Incorporated on 31 July 2008 as a not-for-profit public limited company under Section 25 of the Companies Act, 1956 (now Section 8 of the Companies Act, 2013).
• Model: Set up as a Public–Private Partnership (PPP) under the aegis of the Ministry of Finance.
  • Government of India (through MSDE) holds 49% whereas the Private sector holds 51%
• Goal: The original goal was to skill/upskill 150 million by 2022, which has been extended to 2030. 

Role in India’s Skill Ecosystem

• Funding support: Provides loans, equity, and grants to private training partners.
• Programme design: “Designs and frames curriculum and certification standards.”
• Industry partnerships: Collaborates with companies to align training with labour market needs.
• Implementation: Executes flagship schemes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) and the Standard Training Assessment and Reward Scheme (STAR).

Concerns

• CAG Report (2015): Highlighted serious issues in governance and accountability in both NSDC and NSDF.
• Track record: Out of 1.13 crore certified under PMKVY & STAR till March 2024, only 24.4 lakh were placed – reflecting poor “training-to-employment conversion ratio.”

About Pradhan Mantri Kaushal Vikas Yojana (PMKVY)

• Launch & Management: Launched in 2015, PMKVY is managed by the Ministry of Skill Development & Entrepreneurship and implemented by NSDC under the Skill India Mission.
• Objective: Provides short-term, certification-based training with monetary rewards and Recognition of Prior Learning (RPL).
• Target Group: Focused on Indian youth (15–45 years), particularly school and college dropouts.
• Goal: Enhance employability and skill readiness through industry-relevant training programmes.

About Standard Training Assessment & Reward Scheme

• Objective: Encourage skill development among youth by offering monetary rewards for successful completion of approved training programmes.
• Implementation: Operated through Public–Private and Public–Public partnerships.
• Coverage: Aims to benefit around 10 lakh youth within one year of its launch through market-driven skill training.
• Incentives: Provides financial incentives upon successful completion of training.
• Certification: Participants receive a STAR (Standard Training Assessment & Reward) certificate, jointly issued by the Government of India, NSDC, RASCI (Retailers Association’s Skill Council of India) and GJSCI (Gujarat State Skill Council of India) and recognized nationwide.

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