Parliamentary Panel Pulls Up Government Over Delays in SANKALP Rollout

Why in the News?

The Public Accounts Committee (PAC) has criticised the government for the slow and poorly planned implementation of the SANKALP scheme, based on findings of a report by the Comptroller and Auditor General of India (CAG).

The PAC flagged underutilisation of funds, weak monitoring, and lack of preparedness in executing the scheme.

Background and Context

India’s demographic profile—with one of the world’s largest youth populations—makes skill development central to employment generation and economic growth. Recognising this, the government launched the Skill Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) scheme to strengthen institutional frameworks and improve quality of short-term skill training.

However, persistent challenges such as fragmented implementation, weak industry alignment, and limited monitoring have affected outcomes in India’s skilling ecosystem.

The recent audit review highlights systemic issues in the design and execution of externally aided flagship programmes.

Overview of the SANKALP Scheme

SANKALP (Skill Acquisition and Knowledge Awareness for Livelihood Promotion) is a flagship programme of the Ministry of Skill Development and Entrepreneurship.

• Approved by the Cabinet Committee on Economic Affairs (CCEA) in October 2017.
• Total outlay: ₹4,455 crore.
• Launched in January 2018.
• Originally scheduled to conclude by March 2023; later extended to March 2024.

Objectives

• Strengthening institutional mechanisms for skill development.
• Improving industry linkages.
• Enhancing inclusion of marginalised communities.
• Introducing better monitoring and governance frameworks.
• Promoting outcome-based and demand-driven skilling aligned with industry needs.

The scheme sought to improve employability outcomes and create a sustainable skilling ecosystem.

Funding Pattern of the Scheme

The financial structure combined domestic and external funding:

• ₹3,300 crore through a World Bank loan.
• ₹660 crore through State contributions.
• ₹495 crore through industry participation.

The scheme incorporated performance-based financing and incentives to promote accountability at national and State levels.

CAG Findings: Financial and Physical Progress

The CAG report, examined by the PAC, revealed significant gaps:

• Only 44% of the total budgeted allocation was disbursed between 2017–18 and 2023–24.
• Against the first tranche of the World Bank loan of $250 million:
• ₹1,606.15 crore (86%) was disbursed by the World Bank.
• Only ₹850.71 crore was utilised by the Ministry as of December 2023.

Key Audit Observations

• Weak adherence to scheme guidelines.
• Sluggish pace of implementation.
• Lack of institutional preparedness before commencement of the loan period.
• Absence of a robust monitoring framework.

The CAG attributed delays largely to administrative non-preparedness.

Observations of the Public Accounts Committee

The PAC described implementation as “lackadaisical” and raised the following concerns:

1. Absence of Central Monitoring Mechanism

Skill development requires coordination among the Centre, States, and private stakeholders. The PAC questioned the absence of a strong centralised monitoring system to track progress across States.

2. Inadequate Due Diligence

The Committee highlighted insufficient assessment of institutional readiness before scheme rollout, indicating gaps in planning and administrative capacity.

3. Missing Roadmap for School-Level Integration

Members noted the absence of a clear roadmap to integrate vocational education into school curricula from primary to higher secondary levels.

This is significant in light of the National Education Policy 2020 (NEP 2020), which emphasises vocational exposure at early stages to improve long-term employability.

Broader Context of Skill Development in India

India’s demographic dividend presents both opportunity and risk:

• A large working-age population can boost economic growth.
• However, skill gaps may result in unemployment or underemployment.

Other initiatives like the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) aim to enhance training quality and coverage, yet systemic challenges persist:

• Fragmented implementation.
• Weak industry participation.
• Inadequate monitoring and evaluation.
• Underutilisation of funds.

The SANKALP case illustrates the need for institutional preparedness, inter-ministerial coordination, and data-driven evaluation in large-scale social sector schemes.

Significance of the Issue

Parliamentary Oversight

The PAC’s intervention reinforces Parliament’s role in financial accountability and oversight of public expenditure.

Fiscal Prudence

Underutilisation of externally aided loans increases fiscal inefficiency and opportunity costs.

Employment and Growth

Effective skill development is essential for:

• Enhancing labour productivity.
• Supporting manufacturing and services growth.
• Leveraging India’s demographic advantage.

Weak implementation undermines long-term economic competitiveness.