In News:

SANKALP (?4,455 crore outlay) is a World Bank-assisted skill reform programme launched in 2018, but only 44% of its budget was disbursed between 2017–18 and 2023–24, raising concerns over weak monitoring and slow implementation.

About SANKALP Scheme

SANKALP stands for Skill Acquisition and Knowledge Awareness for Livelihood Promotion.

• Launched: 19 January 2018
• Implementing Ministry: Ministry of Skill Development and Entrepreneurship (MSDE)
• Approval: Cabinet Committee on Economic Affairs (October 2017)
• Initial Duration: Till March 2023 (extended to March 2024)
• Total Outlay: ?4,455 crore

Funding Pattern

• World Bank Loan: ?3,300 crore
• State Contribution: ?660 crore
• Industry Leverage: ?495 crore

Objectives of SANKALP

• Strengthen short-term skill training
• Improve institutional capacity at Central, State and District levels
• Enhance industry linkage for demand-driven training
• Promote inclusion of marginalised and disadvantaged groups
• Establish quality assurance and monitoring mechanisms

The scheme aims at systemic reforms rather than direct training delivery.

Key Features

1. Institutional Strengthening

• Capacity building of skill development institutions
• Improved coordination between Centre, States and districts

2. Industry Linkage

• Partnerships with industries
• Demand-driven curriculum and improved placement outcomes

3. Inclusion Focus

• Targeted support to marginalised communities
• Greater equity in access to skill development

4. Performance-Based Funding

• Uses Results Framework
• Disbursement Linked Indicators (DLIs) to track measurable outcomes

Issues Flagged by Audit and Parliamentary Oversight

CAG Observations

The Comptroller and Auditor General (CAG) highlighted:

• Only 44% of budgeted funds disbursed between 2017–18 and 2023–24 (as of October 2023)
• Delays in financial and physical progress
• Weak adherence to implementation guidelines
• Non-preparedness before commencement of World Bank loan period

Loan Utilisation

• Against first tranche of $250 million, ?1,606.15 crore (86%) was disbursed by World Bank
• Ministry utilised only ?850.71 crore (as of December 2023)

Public Accounts Committee (PAC) Concerns

Public Accounts Committee criticised slow implementation and:

• Absence of a central monitoring mechanism
• Gaps in due diligence
• Sluggish pace of execution across components

The PAC was examining the CAG report on SANKALP’s performance.

Significance for Skill Development

SANKALP is important because:

• India has a large youth population requiring employable skills
• Short-term skilling is key to employment generation
• Industry-aligned training enhances productivity and job readiness
• Effective implementation is crucial for achieving skill ecosystem reforms

However, delayed fund utilisation and weak monitoring undermine intended outcomes.