SANKALP Scheme Implementation Concerns (Completely Explained)

Context

The Public Accounts Committee (PAC) has criticised the implementation of the SANKALP Scheme, citing findings of the Comptroller and Auditor General (CAG). The audit points to underutilisation of funds, weak monitoring, and administrative non-preparedness, raising broader questions about India’s skill development framework.

Q1. What is the SANKALP Scheme?

1. Full form: Skill Acquisition and Knowledge Awareness for Livelihood Promotion.
2. Launched by the Ministry of Skill Development and Entrepreneurship.
3. Approved in October 2017 by the Cabinet Committee on Economic Affairs.
4. Total outlay: ₹4,455 crore.
5. Operational period: January 2018 – March 2024 (extended).
6. The scheme aimed to strengthen short-term skill training institutions and improve employability.

Q2. What were the core objectives of the scheme?

1. Improve institutional frameworks for skilling.
2. Strengthen industry linkages.
3. Promote inclusion of marginalised communities.
4. Introduce performance–based funding mechanisms.
5. Enhance monitoring and governance systems.
6. The broader goal was a demand-driven skill ecosystem.

Q3. What was the funding structure of SANKALP?

1. ₹3,300 crore through World Bank loan.
2. ₹660 crore through State contribution.
3. ₹495 crore through industry participation.
4. The scheme adopted outcome-based financing.

Q4. What were the key findings of the CAG report?

1. How much of the allocated budget was utilised: Only 44% of the total provision disbursed between 2017–18 and 2023–24.
2. What was the status of World Bank loan utilisation?
   1. First tranche: $250 million.
   2. ₹1,606.15 crore disbursed by World Bank (86%).
   3. The Ministry utilised only ₹850.71 crore as of December 2023.
3. What systemic weaknesses were identified?
   1. Weak adherence to implementation guidelines.
   2. Slow pace of execution.
   3. Administrative non-preparedness at launch stage.

Q5. What concerns did the Public Accounts Committee raise?

1. Why was the implementation termed “lackadaisical”?
   1. Delayed fund
   2. Weak central monitoring
   3. Absence of institutional preparedness.
2. What monitoring gaps were highlighted?
   1. No strong central tracking system across States.
   2. Weak coordination between Centre, States, and industry.
3. What due diligence concerns were raised?
   1. Inadequate assessment of administrative readiness.
   2. Loan period began without operational clarity.
4. Why is lack of school-level integration significant?
   1. No roadmap for vocational integration from primary to higher secondary levels.
   2. Weak alignment with National Education Policy 2020, which emphasises early vocational exposure.

Q6. How does SANKALP fit into India’s broader skill development framework?

1. Complements Pradhan Mantri Kaushal Vikas Yojana.
2. Aims to institutionalise skilling governance.
3. Seeks to leverage demographic dividend.
4. India’s large youth workforce requires scalable and efficient skill development.

Q7. What structural challenges persist in skill development?

1. Fragmented implementation across states.
2. Weak industry-academia
3. Insufficient labour market mapping.
4. Underutilisation of allocated funds.
5. Monitoring and data deficiencies.

Q8. What are the administrative and federal dimensions involved?

1. Skill development operates across Centre and States.
2. Requires coordination with education, labour, and industry ministries.
3. World Bank-linked funding introduces international reporting obligations.
4. State capacity differences affect uniform implementation.

Q9. What economic implications arise from implementation delays?

1. Reduced employment absorption potential.
2. Wastage of demographic dividend window.
3. Lower productivity gains.
4. Credibility issues in multilateral loan utilisation.

Q10. What governance benefits would effective implementation provide?

1. Better employability outcomes.
2. Industry-ready workforce.
3. Increased MSME productivity.
4. Stronger institutional accountability.
5. Improved return on public investment.

Q11. What safeguards and reforms are necessary?

1. Robust central monitoring dashboard.
2. Periodic third-party evaluation.
3. Labour market demand mapping.
4. Greater industry participation in curriculum design.
5. Alignment with NEP vocational integration goals.
6. Timely utilisation of externally funded components.

Conclusion

The SANKALP Scheme reflects India’s ambition to create a demand-driven, industry-aligned skill ecosystem. However, the PAC and CAG findings highlight systemic implementation gaps, underutilisation of funds, and weak monitoring. Strengthening institutional capacity, improving inter-governmental coordination, and ensuring outcome-based accountability are essential to convert demographic potential into economic productivity.