Published on November 06 , 2025
Delhi, India
In a decisive move to restore integrity to India’s flagship skill development initiative, the Ministry of Skill Development and Entrepreneurship (MSDE) has blacklisted 178 training partners (TPs) and centers under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY). This action, announced via an official letter on October 30, 2025, targets deep-rooted fraud that has plagued the program, threatening its goal of empowering over 1.64 crore youth with job-ready skills. As PMKVY 4.0 faces its toughest scrutiny yet, here’s a breakdown of the scandal, responses, and road ahead.
Background: PMKVY’s Promise and Perils
Launched in 2015 as the cornerstone of the Skill India Mission, PMKVY aims to bridge the employability gap by offering short-term training, certifications, and placements in sectors like IT, healthcare, and manufacturing. With ₹1,538 crore allocated for 2024-25, it has trained millions – but systemic loopholes have bred corruption.
- Scale of the Program: Over 1.64 crore youth skilled since inception, covering 40+ job roles.
- Recent Vulnerabilities: PMKVY 4.0 (2022 onward) saw a surge in irregularities, including absentee students and forged records, eroding public trust.
- Funding at Risk: Billions in reimbursements diverted, starving legitimate centers of resources.
Nature of the Corruption: A Web of Deceit
Audits revealed a pattern of malpractices turning training hubs into “ghost operations,” where funds flowed without delivering value. The blacklist stems from verified cases of manipulation, with fraudsters exploiting lax oversight for quick gains.
- Ghost Trainees and Forged Attendance: Centers claimed reimbursements for non-existent students, tampering records to fake participation.
- Proxy and Fake Identities: 122 TPs mismatched with their centers, indicating shell operations; 56 compliant in name but non-functional in practice.
- Inflated Bills and Phantom Infrastructure: Fake documents and non-existent facilities led to crores in undue payouts.
- Historical Context: Similar scandals in PMKVY 2.0 and 3.0, but this wave exposes deeper, organized rackets.
Government’s Swift Response: Blacklisting and Beyond
The MSDE’s zero-tolerance approach marks a turning point, freezing operations and clawing back funds to safeguard taxpayer money. This isn’t isolated – it’s part of ongoing probes into the National Skill Development Corporation (NSDC), PMKVY’s implementing arm.
- Immediate Blacklisting: 178 entities barred nationwide from PMKVY activities, effective immediately.
- Fund Recovery and Legal Action: Processes underway to reclaim misused funds; FIRs filed against severe offenders for criminal probe.
- Operational Freeze: Training halted in affected districts, with nationwide audits ramping up.
- NSDC Overhaul: Amid internal shake-ups, including CEO ouster in May 2025 and August complaints against officials for fund mishandling.
States Hit Hardest: A Regional Breakdown
The fraud wasn’t uniform – northern and central states bore the brunt, highlighting uneven implementation across India.
- Uttar Pradesh: 59 blacklisted (highest, signaling major hotspots in rural skilling).
- Delhi: 25 entities, urban centers implicated in proxy setups.
- Madhya Pradesh: 24 cases, focused on vocational trades.
- Rajasthan: 20 partners, with issues in attendance fraud.
- Others: Single cases in Jammu & Kashmir, Maharashtra, Chhattisgarh, Mizoram, Telangana, and Tamil Nadu.
Impact: Disruption, Distrust, and a Path to Renewal
This purge has stalled PMKVY in key regions, delaying training for thousands of aspirants and denting Skill India’s credibility. Yet, it paves the way for a robust ecosystem.
- Short-Term Disruptions: Near-halt in operations across districts; genuine trainees urged to verify centers via official portals.
- Long-Term Gains: Cleaner funds could boost ethical TPs, with calls for AI audits and blockchain certifications to prevent recurrence.
- Youth Angle: Millions at risk of missing placements; experts push for faster vetting to resume skilling without delays.
- Broader Reforms: Tighter transparency norms, including real-time monitoring, to rebuild trust in the ₹12,000 crore+ initiative.
