PMKVY 4.0 meets just 15% of target, MSDE plans version 5.0 with skill vouchers, outcome bonds, APAAR Id link

PM Kaushal Vikas Yojana: The Ministry of Skill Development and Entrepreneurship (MSDE) is preparing to launch the fifth version of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) soon, even as its current edition – PMKVY 4.0 – has certified barely 15% of its three-year target.

PMKVY 5.0 is likely to have new features such as the option of multiple entry-exit, introduction of tracking of post training outcomes and innovative financing such as skill voucher, skill outcome bond and skill loan to name some, official documents accessed by Careers360 reveal.

There would also be a unique identity for skills integrated with Automated Permanent Academic Account Registry (APAAR) id. A recent audit of the scheme by the Comptroller and Auditor General of India (CAG) flagged numerous irregularities in the operation of the PM Kaushal Vikas Yojana.

PMKVY was launched in 2015 under the Skill India Mission with the goal of skill development through short-term training (STT), upskilling and reskilling, and recognition of prior (RPL) The current version of the scheme – PMKVY 4.0 – started in 2022 and is slated to continue till 2026. National Skill Development Corporation (NSDC) is the implementing agency of PMKVY.

However, out of the physical target of certifying 30 lakh for financial year 2025-26, PMKVY 4.0 was able to train and certify just 2.87 lakh – a shortfall of 27.13 lakh.

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PMKVY 4.0: 15.65% achievement in 3 years

The ministry in its various responses to the parliament stated that it has improved on the scheme following the CAG review, but in reality, it is still far behind achieving its basic targets.

In PMKVY 4.0, placements were also delinked . The parliamentary panel had raised concern over the delinking and had stated that “placement was the real barometer for measuring the success of the scheme”.

Out of the earlier three phases, 24.37 lakh (57%) were placed where placements were tracked under the STT component. Under PMKV 4.0, the ministry stipulated its target completion at 15.65% in the last three financial years.

The total number of candidates trained and certified under PMKVY 4.0 till December 31, 2025, are:

• Enrolled:33,47,294
• Trained: 27,09,984
• Assessed: 19,71,105
• Certified: 18,79,742

The ministry is formulating the next version – PMKVY 5.0 – for consideration and necessary approvals. Once approved the scheme will be launched in the coming financial year itself. It will reportedly prioritise STT more than RPL and strengthen governance of the scheme in partnership with the states.

The scheme along with the other two – Jan Shiksan Sansthan (JSS) and National Apprenticeship Promotion Scheme (NAPS) as part of Skill India Mission has been allocated Rs 2,800 crore in the 2026-27 union budget .

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PMKVY 5.0: Third-party evaluation

Arun Jaitley National Institute of Financial Management (AJNIFM) had conducted the third party evaluation of the PMKVY scheme . The same institute had also studied the JSS one.

The report had made certain recommendations, such as:

• Systematic mapping of assessor availability by job role and geography, followed by formulation of a timeline-linked strategy.
• Differentiated cost norms for advanced courses and high-equipment sectors.
• Training Partners (TP) monitoring, performance-linked evaluation and improved coordination between awarding bodies and TPs .
• Revision in stipends/wage-compensation provided to RPL participants.
• Rigorous tracking of students till one year post-certification completion.
• Enhancing state-level implementation capacity with district support units’ help.
• Establishing state-of-the-art national skilling institutions

How will PMKVY 5.0 be different?

The new features of PMKVY 5.0 include:

• Multiple entry-multiple exit (ME-ME) framework as envisaged under the National Education Policy (NEP) 2020.
• Introducing innovative financing such as skill voucher, skill outcome bond, skill loan.
• Post-Training outcome tracking through integration with existing platforms.
• Tapping international opportunities and training in foreign languages.
• Training through empanelled government and private Centres of Excellence (CoEs).
• Overhauling training process of trainers and assessors.
• Formative assessment in addition to summative assessment for evaluating candidates.
• Unique identity for skills integrated with APAAR ID.