Irregularities in Modi-initiated NSDC raise questions about the future of Skill India

By Onkareshwar Pandey

Prime Minister Narendra Modi’s Skill India initiative was conceived as a bold national effort—to equip India’s vast young population with industry-ready skills and transform the country into the “skills capital of the world.” At the heart of this mission lies the National Skill Development Corporation (NSDC), a public-private partnership under the Ministry of Skill Development and Entrepreneurship (MSDE). But recent revelations of large-scale financial irregularities within NSDC threaten to undermine not just the institution, but the very promise of Skill India.

A forensic audit by global firm KPMG has brought to light serious lapses in the financial operations of NSDC—amounting to a loss of ₹1,082 crore. These are not trivial accounting errors. According to a whistleblower dossier titled “1000 Crore Scam in NSDC – MSDE”, the period between 2016 and 2021 saw questionable loans and CSR disbursements approved by NSDC officials to training partners, despite repayment rates dropping as low as 12%. The audit flagged 23 types of procedural failures—ranging from repetitive justifications for risky loans to unverifiable training centres and even inconsistencies in partner signatures. Such glaring red flags suggest not just poor oversight, but the potential misuse of public funds.

Amid this, the role of Ved Mani Tiwari becomes central. Appointed as Chief Operating Officer in 2021 and later Interim CEO, Tiwari appeared to steer the NSDC toward reform. He initiated the very forensic audit that exposed the financial mismanagement. His "Project Welsher" led to the recovery of ₹214 crore from defaulters, introduced GPS-verification for training centres, and helped certify over 1.5 lakh youth in sectors like IT, healthcare, and logistics. Under his leadership, NSDC also built global partnerships with the World Bank and ILO. Yet, in a paradox that has sparked national concern, Tiwari was abruptly removed from his position in April 2025. This despite his role in revealing the financial rot and reviving the corporation’s credibility.

Why was the whistleblower removed while those linked to the irregularities reportedly sought reappointment? The KPMG report, which should have sparked swift corrective action, was instead delayed twice under the pretext of "legal advice" and has not been tabled in Parliament to date. This suppression of key audit findings raises disturbing questions about institutional accountability.

Media reports, too, have at times diverted attention. For instance, a Indian Express report from September 2024, which critiqued worker deployment under an Israel job scheme, indirectly questioned NSDC’s effectiveness. Tiwari rebutted the article as factually incorrect, highlighting that such partial narratives risk obscuring the larger issue: the ₹1,082-crore irregularities and systemic failures in NSDC’s governance.

The silence from authorities is equally telling. A detailed dossier on the financial mismanagement and audit findings was reportedly submitted to the Minister for Skill Development, Finance Minister, and Prime Minister’s Office late last year. No official response has followed. Internal documents suggest facilitation fees were sought during loan disbursals, and nearly 40% of training certificates issued in recent years lacked proper verification—factors which may have inflated justifications for public funds. Still, little has been done to publicly address or rectify these issues.

Moreover, older FIRs related to NSDC—like the one lodged in 2014 at Okhla Industrial Area Police Station and another by the Economic Offences Wing—remain unresolved. Investigations seem to have stalled, possibly due to external pressures. This inertia chips away at the integrity of the very system that was supposed to uplift the aspirations of young Indians.

The NSDC case must serve as a wake-up call. Prime Minister Modi’s pledge of “Na Khaunga, Na Khane Doonga” is now being tested by the very institutions entrusted with delivering his vision. It is not merely a question of lost funds—it is a crisis of public trust and governance. Why was a reformist like Tiwari dismissed? Why hasn’t the KPMG report been made public? And why do training centres with no verifiable existence continue to receive funds?

India cannot afford such opacity. With youth unemployment high and global partners watching closely, restoring transparency at NSDC is not just desirable—it is imperative. If India truly aims to lead the world in skilled labour, it must first ensure that its own house is in order.

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A version of this article was first published in Global Bihari. Onkareshwar Pandey is Executive Fellow at Woxsen University and CEO & Editor-in-Chief of Observer Global Media Group. He has served in senior editorial roles with Rashtriya Sahara, The Sunday Indian, ANI, and Sahara TV, and is the author/editor of ten books

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