PAC observation on SANKALP Scheme

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Context:

Recent findings of CAG and PAC on SANKALP Scheme, indicates a under utilisation of fund and implementation gaps.

SANKALP Scheme (Skill Acquisition and Knowledge Awareness for Livelihood Promotion):

SANKALP is a flagship initiative of the Ministry of Skill Development and Entrepreneurship (MSDE) designed to strengthen India’s short-term skill training ecosystem. The programme is supported through financial assistance from the World Bank and focuses on improving both the scale and quality of skill development.

Its broader aim is to build a robust institutional framework, improve industry alignment, and ensure that vulnerable and disadvantaged groups benefit from skill training opportunities.

Objectives of SANKALP:

The scheme seeks to:

• Improve the quality and outcomes of short-term skill training.
• Strengthen institutional capacity at different levels of governance.
• Enhance industry linkage and labour market relevance.
• Promote equitable access for women, socially disadvantaged groups, and other marginalised sections.

Framework:

The programme follows a Results-Based Financing approach, where fund releases are linked to measurable achievements. Progress is tracked through:

• A Results Framework agreed between MSDE and the World Bank.
• Disbursement Linked Indicators (DLIs), which ensure accountability and outcome-oriented implementation.
• Independent verification protocols to confirm performance against each indicator

Types of interventions:

SANKALP interventions are organised into:

• Institutional strengthening initiatives
• Quality improvement and industry linkage measures
• Inclusion and access programmes for marginalised populations
• Projects that address multiple result areas simultaneously

Key outcomes of SANKALP:

Institutional strengthening: This component focuses on building a strong and coordinated governance framework for skill development across the Central, State, and District levels. It aims to enhance the administrative and functional capacity of institutions involved in skilling by improving planning processes, strengthening monitoring and evaluation systems, and ensuring effective implementation of training programmes. The initiative also supports the development of robust coordination mechanisms among various stakeholders to create a more efficient and accountable skill ecosystem.

Enhancing market relevance and quality: Under this result area, the emphasis is on making skill training industry-oriented and outcome-driven. Training programmes are aligned with labour market needs to improve employability. The scheme promotes courses that conform to the National Skills Qualifications Framework (NSQF) to ensure standardisation and national recognition. It also supports the development of model curricula, learning materials, and reliable assessment systems. In addition, special attention is given to improving the quality of human resources by training and re-skilling trainers and assessors, thereby enhancing the overall effectiveness of skill delivery.

Inclusion and access for marginalised groups: This component aims to make skill development more equitable and inclusive by increasing the participation of women, socially disadvantaged groups, and economically weaker sections. Efforts are directed towards expanding outreach in rural, remote, and underserved regions. The scheme also promotes local-level institutional mechanisms, such as Panchayats and district bodies, to connect unemployed youth with training opportunities and link them to sustainable employment and livelihood options, ensuring that the benefits of skilling reach those who need them the most.

CAG Findings on SANKALP Scheme:

Financial progress: The audit observed that the scheme suffered from persistent underutilisation of funds, indicating weak financial planning and execution capacity. Only about 44% of the total budgeted allocation was utilised between 2017–18 and October 2023.

Although a substantial portion of the World Bank loan was released, the actual expenditure by the implementing ministry remained low. For instance, out of the funds disbursed under the first tranche, only a limited share was used, reflecting delays in project initiation, slow approval processes, and limited absorption capacity at different administrative levels.

Physical progress: In addition to financial gaps, the CAG noted that physical implementation lagged behind targets across several components of the scheme. Many planned activities were delayed or progressed at a slower pace due to:

• Inadequate preparatory work before the commencement of the project period
• Weak adherence to operational guidelines
• Delays in setting up institutional structures and systems
• Limited coordination between the Centre, States, and implementing agencies

The audit also pointed to the absence of a strong monitoring mechanism to track real-time progress and address implementation bottlenecks.

Key Observations of the Public Accounts Committee (PAC):

Lack of effective planning and preparedness: The PAC observed that the scheme was launched without adequate institutional readiness. Insufficient preparatory work before the commencement of the project period led to delays in utilisation of funds and slowed the pace of implementation. The Committee emphasised that large externally funded programmes require proper due diligence and advance planning to ensure timely execution.

Absence of a robust central monitoring mechanism: One of the major concerns raised was the lack of a strong centralised monitoring system to track progress across States and implementing agencies. The Committee pointed out that weak oversight limited the government’s ability to identify bottlenecks, ensure accountability, and take timely corrective measures.

Poor financial and physical performance: The PAC criticised the slow pace of fund utilisation and implementation, describing the approach as lackadaisical. It noted that delays in both financial expenditure and physical achievements had reduced the overall effectiveness of the scheme.

Gaps in coordination and accountability: Members highlighted the need for better coordination between the Centre, States, and other stakeholders. The absence of clearly defined responsibility and performance tracking mechanisms affected the delivery of intended outcomes.

No clear roadmap for school-level skilling: The Committee also expressed concern over the absence of a concrete plan to integrate vocational education into the school system from primary to higher secondary levels. It stressed that early exposure to skills is essential for improving employability and aligning with long-term workforce needs.

Importance of PAC observation:

• Addressing India’s skill gap: According to the National Skill Development Corporation (NSDC), India requires a skilled workforce of nearly 29 crore people by 2030 across key sectors. However, various estimates suggest that only about 4–5% of India’s workforce has received formal skill training, compared to 52% in the United States, 68% in the United Kingdom, and over 75% in Germany and Japan.
• Demographic Dividend at Risk: India’s working-age population (15–59 years) is expected to remain above 60% of the total population until 2040 (Economic Survey). Without effective skilling and employment linkages, this demographic advantage could translate into higher unemployment and informal employment, rather than economic growth. The Periodic Labour Force Survey (PLFS) 2022–23 reported an overall unemployment rate of 3.2%, but unemployment among youth remains relatively high, reflecting a mismatch between education, skills, and labour market demand.
• Underutilisation of financial resources: The Comptroller and Auditor General of India (CAG) found that only 44% of the allocated funds under SANKALP were utilised between 2017–18 and October 2023. Out of ₹1,606.15 crore released by the World Bank under the first tranche, only ₹850.71 crore had been spent by December 2023. These figures indicate that the key challenge lies in implementation capacity rather than availability of funds.
• Weak training-to-employment outcomes: Data from the Ministry of Skill Development and Entrepreneurship indicate that placement rates under short-term training programmes have often remained around 30–40%. The Economic Survey 2023–24 also stressed the need to move beyond counting training numbers and focus on employment-linked outcomes, as low placement rates reduce the effectiveness of skill initiatives.
• Need for early vocational integration in education: The Ministry of Education under NEP 2020 has set a target of providing vocational exposure to 50% of learners by 2025. However, the Public Accounts Committee noted the absence of a clear roadmap for integrating skill education into the school system, which is essential for building long-term employability and reducing future skill gaps.

Way Forward:

• Strengthening project planning and readiness: Future skill development programmes should begin only after ensuring administrative preparedness, institutional capacity, and clear operational guidelines. Proper project readiness, including timely approval of action plans and staffing at Central and State levels, will help avoid delays in fund utilisation and implementation.
• Establishing a robust monitoring and evaluation system: There is a need to create a strong centralised digital monitoring framework that tracks financial progress, training quality, and employment outcomes in real time. Regular performance reviews, third-party evaluations, and public disclosure of progress can improve accountability and transparency.
• Shifting to outcome-based skilling: Skill initiatives should focus not merely on the number of candidates trained but on measurable outcomes such as placement rates, wage levels, and retention. Linking fund releases to employment outcomes and industry certification will improve the effectiveness and credibility of training programmes.
• Strengthening industry linkages: Greater participation of industry is essential to ensure market-relevant training. Expanding apprenticeship programmes, sector skill partnerships, and employer-led curriculum design will help align skills with labour market demand and improve employability.
• Integrating vocational education with schooling: In line with NEP 2020, a time-bound roadmap should be developed to introduce vocational exposure from the middle school level and expand it up to higher secondary. Early skill orientation will reduce dropouts, improve career awareness, and build a future-ready workforce.

Conclusion:

The concerns raised over SANKALP highlight that the challenge in India’s skill ecosystem lies not in resource availability but in effective planning, monitoring, and outcome-oriented implementation. Strengthening institutional capacity, improving industry alignment, and ensuring better fund utilisation are essential to enhance employability and fully realise India’s demographic potential.

Source: The Hindu