Skip to main content

Govt of India report: Skill development centres promoted crony capitalism, wasted away Rs 2,500 crore

By Jag Jivan* 
A recent Government of India report  has said that its skill development programmes have actually promoted “hotbed of crony capitalism”, with what were supposed to be “industry-run” centres having actually extracted “maximum benefit from public funds.”
The report regrets that an amount of Rs 2,500 crore of public funds was spent to benefit the private sector without serving the twin purposes of meeting the exact skill needs of the industry and providing employment to youth at decent wages.
It says, many of its initial loans of around Rs 1,500 crore – nearly equivalent to the cost of setting up an Indian Institute of Technology (Rs 1,748 crore) – were not paid back, even as providing a list of 15 defaulting skill training centres set up under public-private partnership.
Prepared by the Committee for Rationalization & Optimization of the Functioning of the Sector Skill Councils (SSCs) constituted by the Ministry of Skill Development and Entrepreneurship, Government of India, and submitted April this year, the report says, the Sector Skill Councils (SSCs), started setting up in 2010-11, were actually supposed to be “industry-led and industry-governed.”
Mandated to ensure that skill development is in accordance with “the actual needs of the industry”, the report, however, says, SSCs “are neither ‘of’ the industry, nor ‘by’ the industry and nor ‘for’ the industry”, as the direct involvement of the industry in the SSCs has remained “quite peripheral.”
“Most of them have been sponsored/promoted by various industry associations, which is not the same thing as being promoted by employers”, the report says, adding, in majority of cases SSCs are not owned by employers.
Workers with formal skills in different countries
Observing “huge shortage of qualified trainers”, the report says, “SSCs made a mockery of trainers training by giving fresh diploma and engineering graduates 2-5 day training to become a qualified trainer. The instructor training is of one year duration but despite the efforts of the government, the training capacity of the trainers still stands at 8,268 per annum while we require at least 20,000 trainers per annum.”
Based on the report, www.indiaspend.com, a well-known data analysis site, says, India’s goal of skilling 400 million people under the National Skills Development Programme 2015 is “too large, unnecessary and unattainable”.
The 2015 National Policy for Skill Development and Entrepreneurship has estimated the need to skill 402 million people over the next seven years – to train 104 million fresh entrants and re-skill/up-skill the existing 298 million farm and non-farm sector workforce, the site says, adding, however, “The government has been unable to meet its annual targets set by various ministries and departments for any but one of the last five years, 2013-14.”
Accusing the government’s skill training programmes have set “wrong targets and wasted public funds”, the site says, SSCs proposed “huge physical targets” of training and certifying institutions and people – both trainees and trainers–on an “arbitrary basis,” without formulating a sectoral labour market information system and sectoral skill development plan.
Quoting a media report, the site says, nearly 40% of the enrolled trainees in skill development centres in three states – Uttar Pradesh, Haryana and Rajasthan – were found to be “ghost entries” following which the ministry was forced to suspend allocation of new centres in these states.
---
*Freelance writer

Comments

Uma said…
Will we ever hear of a government scheme run honestly and without bias?

TRENDING

When democracy becomes a performance: The Tibetan exile experience

By Tseten Lhundup*  I was born in Bylakuppe, one of the largest Tibetan settlements in southern India. From childhood, I grew up in simple barracks, along muddy roads, and in fields with limited resources. Over the years, I have watched our democratic system slowly erode. Observing the recent budget session of the 17th Tibetan Parliament-in-Exile, these “democratic procedures” appear grand and orderly on the surface, yet in reality they amount to little more than empty formalities. The parliamentarians seem largely disconnected from the everyday struggles faced by ordinary exiled Tibetans like us.

Fair prices, fresh produce: Vegetable market opens in Rajasthan tribal village

By Vikas Meshram*  On 18 March 2026, the tribal village of Sajjangarh in southern Rajasthan witnessed the grand and dignified inauguration of a new vegetable market (mandi). Established through the tireless joint efforts of the Krushi Avam Adivasi Swaraj Sangathan (Bhilkuaan) and Vaagdhara, under the active leadership of the Gram Panchayat of Sajjangarh, the market is being hailed as a cornerstone for local self-governance, self-reliance, and a sustainable rural economy. 

Study links sanctions to 500,000 deaths annually leading to rise in global backlash

By Bharat Dogra  International opinion is increasingly turning against the expanding burden of sanctions imposed on a growing number of countries. These measures are contributing to humanitarian crises, intensifying domestic discord, and heightening international tensions, thereby increasing the risks of conflicts and wars. 

Ex-IAS Atanu Chakraborty and a tale of two different Gujarat vision documents

By Rajiv Shah  The likely appointment of Atanu Chakraborty as HDFC Bank chairman interested me for several reasons, but above all because I have interacted with him closely during my more than 14 year stint in Gandhinagar for the “Times of India”. One of the few decent Gujarat cadre bureaucrats, Chakraborty, belonging to the 1985 IAS batch, at least till I covered Sachivalaya was surely above controversies. He loved to remain faceless, never desired publicity, was professional to the core, and never indulged in loose talk. When he neared retirement, which happened in April 2020, first there were rumours in Sachivalaya that he would be appointed SEBI chairman, and then there was talk he would be chairman (or was it CEO?) of Gujarat International Finance Tec (GIFT) City (a dream project of Narendra Modi as Gujarat chief minister, which as Prime Minister Modi wants to promote, come what may). But, for some strange reasons, and I don’t know why, none of this happened, despite the fact...

Weaponised bravery, institutionalised cowardice as the engine of authoritarianism

By Bhabani Shankar Nayak*  The insidious politics of crony capitalism is accelerating at an unprecedented pace, aided by the reckless expansion of artificial intelligence and other technologies designed not to liberate but to dominate, domesticate, and dehumanise societies. Alongside this, an illiberal politics of cowardice is emerging—serving as an accomplice to dehumanisation amid growing imperialist wars and conflicts across the world. Death in distant lands no longer stirs conscience. The push-button culture of digital screens has transformed social media into a disconnected, individualised, Hobbesian space, where the puritan pursuit of self-interest is elevated as the essence of human existence.  

Moon missions and manholes: Development's drumbeat drowns out deaths in sewers

By Vikas Meshram*  We proudly narrate the story of our nation’s progress. On every platform, we speak of the success of Chandrayaan , Digital India , and our rapidly growing economy. But behind this radiant picture lies a darkness—the world of sanitation workers who descend into sewers, risking their lives. This darkness is not confined to the drains alone; it runs deep within the conscience of our society.

Witnessing Iran beyond propaganda: Truth, war, and the path beyond western paradigm

By Naile Manjarrés  On June 23, 2025—marked as the 2nd of Tir, 1404, on the Persian calendar—a ceasefire between Iran and Israel was announced. This "night of the decree" shifted the trajectory of global affairs; although the world may appear unchanged on the surface, we have yet to fully grasp its impact.

​Best left-handed cricket XI of all-time: Could it beat an all-time right-hander XI?

By Harsh Thakor*  ​This is my all-time left-handers Test XI. It could arguably give an all-time right-handers XI a strong run for its money, boasting the likes of Garry Sobers, Brian Lara, Wasim Akram, and Adam Gilchrist.

Dhurandhar: The Revenge — Blurring the line between fiction and political narrative

By Mohd. Ziyaullah Khan*  "Dhurandhar: The Revenge" does not wait to be remembered; it arrives almost on the heels of its predecessor, released on March 19, 2026, just months after the first film’s December 2025 debut. The speed of its arrival feels less like creative urgency and more like calculated timing—cinema responding not to storytelling rhythm but to the emotional climate of its audience. Director Aditya Dhar, along with actor Yami Gautam, appears acutely aware of this moment and how to harness it.