PAC pulls up govt. for slow implementation of SANKALP scheme

UPSC Study Note: PAC Pulls Up Govt. for Slow Implementation of SANKALP Scheme

1. At a Glance

• SANKALP = Skill Acquisition and Knowledge Awareness for Livelihood Promotion — a flagship scheme of the Ministry of Skill Development and Entrepreneurship (MSDE), co-financed by the World Bank. [S1]
• Focuses on three pillars: institutional strengthening, quality assurance of skill training, and inclusion of marginalised communities. [S1]
• Critical for UPSC because it sits at the intersection of GS-II (government schemes, accountability) and GS-III (inclusive growth, skill development), and tests knowledge of Parliamentary oversight mechanisms (PAC + CAG interplay).
• The February 2026 PAC censure makes it a live Mains/Prelims target for 2026 cycle.

2. Why in the News

• February 21, 2026: The Public Accounts Committee (PAC) of Parliament, chaired by senior Congress leader K.C. Venugopal, criticised the government for "lackadaisical" implementation of SANKALP. [S5]
• The PAC was examining a CAG (Comptroller and Auditor General) report that found: only 44% of the budgeted provision for SANKALP was actually disbursed during 2017-18 to 2023-24 (position as of October 2023). [S5]
• Specific concerns raised: absence of a central monitoring mechanism, gaps in due diligence, weak adherence to implementation guidelines, and sluggish pace across all scheme components. [S5]

3. Background & Evolution

Predecessors / Related Initiatives: - Pradhan Mantri Kaushal Vikas Yojana (PMKVY) — parallel short-term skill training scheme under MSDE. - STRIVE (Skills Strengthening for Industrial Value Enhancement) — approved alongside SANKALP in October 2017 for ITI strengthening. [S2] - Skill India Mission (2015) — the overarching umbrella under which SANKALP operates. [S1]

4. Core Static Facts

5. Multi-Dimensional Analysis

Economic

• SANKALP targets short-term skilling for livelihood generation, directly impacting employability of unskilled/semi-skilled workforce. [S1]
• Under-utilisation of 56% of budgeted funds represents a significant fiscal drag — World Bank loan costs accrue regardless of absorption. [S5]
• Industry leverage component (₹495 crore) was designed to foster PPP (public-private partnership) in skill delivery; its under-realisation weakens the PPP model. [S5]

Social

• Explicitly designed for marginalised communities — SC, ST, women, minorities, differently-abled persons. [S1]
• Slow implementation directly delays social mobility outcomes for vulnerable beneficiaries.
• Strengthening of district-level skilling ecosystems was intended to bridge rural-urban skilling divide. [S2]

Administrative / Governance

• PAC noted absence of a central monitoring mechanism — a structural gap in scheme design/execution. [S5]
• CAG flagged weak adherence to implementation guidelines and gaps in due diligence at implementing agencies. [S5]
• Three-tier financing (Centre + State + Industry) creates coordination complexity, increasing risk of inter-agency buck-passing.
• The scheme's extended timeline (beyond original March 2023 deadline) indicates systemic implementation failure. [S5]

Legal / Constitutional

• PAC operates under Articles 148–151 of the Constitution (CAG mandate) and Parliamentary Rules; it examines CAG reports post-facto.
• CAG audit of SANKALP is under provisions of the CAG (Duties, Powers and Conditions of Service) Act, 1971.
• PAC's findings are tabled in Parliament; government is required to submit Action Taken Reports (ATRs).

Ethical / Accountability

• "Lackadaisical" tag by PAC signals failure of programme ownership within MSDE bureaucracy. [S5]
• Absence of monitoring mechanism raises questions about transparency in World Bank-funded projects, which carry strict disbursement-linked indicators (DLIs).
• Disbursal gaps expose risk of unutilised loan liability — India pays commitment charges on undisbursed tranches.

6. Recent Developments (Last 12–18 Months)

• February 21, 2026: PAC (chaired by K.C. Venugopal) formally criticises Ministry of Skill Development and Entrepreneurship for slow implementation; describes the approach as "lackadaisical." [S5]
• October 2023 (CAG position date): CAG audit finds only 44% disbursement of SANKALP funds over six years; flags sluggish physical and financial progress. [S5]
• Ongoing post-2023: Scheme remains active beyond original March 2023 deadline; no publicly confirmed new end-date or revised outlay found in Tier 1 searches.

7. Prelims Hooks

1. SANKALP stands for Skill Acquisition and Knowledge Awareness for Livelihood Promotion. [S1]
2. SANKALP is a scheme under the Ministry of Skill Development and Entrepreneurship, not Ministry of Labour. [S1]
3. Approved by Cabinet Committee on Economic Affairs (CCEA) in October 2017. [S2]
4. Total project outlay: ₹4,455 crore. [S5]
5. World Bank (IBRD) contribution: ₹3,300 crore (largest single component — ~74% of total). [S5]
6. Loan agreement signed on December 13, 2017; effective January 19, 2018. [S4]
7. World Bank assistance structured in two tranches of US$ 250 million each (total US$ 500 million). [S4]
8. SANKALP was approved alongside STRIVE (Skills Strengthening for Industrial Value Enhancement) in the same CCEA meeting. [S2]
9. CAG found only 44% of budgeted provision disbursed between 2017-18 and 2023-24. [S5]
10. The Public Accounts Committee (PAC) — not PAC-equivalent body — examined the CAG report on SANKALP. [S5]
11. PAC chairman at the time of censure: K.C. Venugopal (Congress). [S5]
12. SANKALP has three Result Areas: institutional strengthening, quality assurance, inclusion of marginalised communities. [S1]
13. State leverage component of SANKALP: ₹660 crore; Industry leverage: ₹495 crore. [S5]
14. Implementing unit focus: district-level skilling ecosystem — a distinguishing feature from central-level schemes. [S2]

8. Mains Relevance

GS Paper Mapping: | Paper | Syllabus Heading | |-------|-----------------| | GS-II | Government Policies and Interventions; Parliament and Executive Accountability; Role of CAG/PAC | | GS-III | Inclusive Growth; Human Resource Development; Skill Development |

Plausible Mains Question Stems: 1. "The Public Accounts Committee's censure of SANKALP implementation reveals structural weaknesses in India's skill development governance. Critically analyse." (GS-II, 15 marks) 2. "Examine the role of World Bank-assisted projects in India's skilling ecosystem, with reference to SANKALP. What challenges arise from externally-funded flagship schemes?" (GS-III, 15 marks) 3. "Discuss how the interplay between CAG audits and the Public Accounts Committee strengthens legislative oversight of executive action, using a recent example." (GS-II, 10 marks)

9. Related Topics to Study Next

10. Common Errors / Trap Areas

1. Wrong Ministry: SANKALP is under Ministry of Skill Development and Entrepreneurship — NOT Ministry of Labour & Employment (which handles EPFO, ESI, labour codes). This is a frequent MCQ trap.
2. Confusing SANKALP with STRIVE: Both approved October 2017, both under MSDE, both World Bank-assisted — but STRIVE targets ITI ecosystem (long-term vocational training infrastructure) while SANKALP targets short-term skill training and district-level ecosystems.
3. World Bank Loan Quantum: The commonly quoted figures are US$ 250 million (first tranche), US$ 500 million (total IBRD loan), and US$ 675 million (total project cost including government contribution). Mixing these up is a classic error.
4. PAC vs. Estimates Committee: PAC examines past expenditure (post-facto, based on CAG reports); Estimates Committee examines future estimates. SANKALP was reviewed by PAC — not the Estimates Committee.
5. CCEA vs. Cabinet: SANKALP was approved by the Cabinet Committee on Economic Affairs (CCEA), a specific sub-committee — not the full Union Cabinet. Exam options often offer both.

11. Sources

• [S1] Sankalp Scheme — PIB Press Release — https://www.pib.gov.in/Pressreleaseshare.aspx?PRID=1780914 — (Tier 1)
• [S2] Cabinet approves SANKALP & STRIVE Schemes to boost Skill India Mission — PIB Press Release — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1506070 — (Tier 1)
• [S3] Skill India's SANKALP Scheme to focus on district level skilling ecosystem — PIB Press Release — https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=192464 — (Tier 1)
• [S4] India Signs Loan Agreement with World Bank for US$ 250 Million for SANKALP Project — PIB Press Release — https://www.pib.gov.in/PressReleasePage.aspx?PRID=1513206 — (Tier 1)
• [S5] PAC pulls up govt. for slow implementation of SANKALP scheme — The Hindu, February 21, 2026 — https://www.thehindu.com/todays-paper/2026-02-21/th_international/articleGBFFK9PS5-13597102.ece — (Tier 4 / Article supplied by user)