NSDC Irregularities Undermine Modi’s Skill India Vision
New Delhi: India’s ambition to become the global skills capital, a key pillar of Prime Minister Narendra Modi’s vision, hinges on the National Skill Development Corporation (NSDC), a public-private partnership under the Ministry of Skill Development and Entrepreneurship (MSDE). Established in 2008, NSDC funds training programmes to equip millions of young Indians with skills for jobs in sectors like plumbing, coding, and nursing. Fuelled by taxpayer money and international loans, it drives the Skill India campaign to create jobs and position India as a leader in skilled labour.
However, a ₹1,082-crore financial irregularity, uncovered by a forensic audit, has cast a shadow over this mission, raising allegations of mismanagement and potential cover-ups. The whistleblower who exposed these issues, Ved Mani Tiwari, recovered ₹214 crore and revitalised NSDC but was unexpectedly removed from his role, while questions swirl about efforts to reinstate a key figure linked to the irregularities. This report examines the financial discrepancies, the audit findings, media narratives, and the systemic challenges threatening India’s skilling dream while carefully navigating unverified claims.
The financial irregularities at NSDC are both straightforward and alarming. A whistleblower dossier, titled “1000 Crore Scam in NSDC – MSDE,” alleges that during 2016–2021, certain NSDC officials approved large loans and CSR funds to training partners despite repayment rates as low as 12% by 2021. A forensic audit by KPMG, a globally recognised firm, conducted in 2023, identified a ₹1,082-crore loss, citing 23 procedural lapses: loan approvals with repetitive justifications lacking due diligence, new funds allocated to cover defaults, 58 training centres listed for loans that could not be verified, and discrepancies in partner signatures. The dossier suggests MSDE officials may have endorsed guarantees despite internal concerns, exacerbating the losses. While these findings point to significant mismanagement, specific allegations against individuals remain under investigation and have not been conclusively proven.
Ved Mani Tiwari, a turnaround specialist, joined NSDC as COO in July 2021 and later served as Interim CEO. Noticing irregular loan patterns, he commissioned the KPMG audit, which confirmed the extent of financial mismanagement. Through his “Project Welsher” initiative, Tiwari halted questionable loans, recovered ₹214 crore from defaulters between FY22- 24, implemented a GPS-based system to verify training centres, and certified 1.5 lakh youth in IT, healthcare, and logistics, according to NSDC’s FY23 report. His partnerships with the World Bank and the ILO bolstered NSDC’s global standing. However, Tiwari faced resistance. Emails from anonymous sources, alleging misuse of NSDC International funds, surfaced between November 2024 and January 2025. By April 2025, the NSDC board, reportedly under MSDE influence, terminated Tiwari’s tenure. The KPMG report was deferred twice on “legal advice” and withheld from Parliament, raising concerns about transparency.
Media coverage has sometimes obscured the full picture. A September 2024 Indian Express article on an Israel job scheme quoted Tiwari defending NSDC but suggested “skill mismatches” in worker selection. Tiwari refuted this as “factually incorrect,” asserting workers were deployed as per their trades. Such reports, while highlighting operational issues, often sideline the broader ₹1,082-crore financial irregularities and Tiwari’s exit, presenting a partial view. A dossier sent to the Skill Development Minister, Finance Minister, and PMO in late 2024, outlining the audit findings and recoveries, has reportedly received no response. Queries by this reporter to NSDC officials for this report went unanswered, fueling speculation of efforts to suppress scrutiny.
Further evidence deepens concerns. Internal “Project Welsher” records, per sources, indicate requests for facilitation fees tied to loan disbursals, flagged by KPMG as potential irregularities, though not pursued by the board. Audits in 2023 found 40% of training certificates lacked proper trainee verification, inflating loan justifications. These findings were allegedly downplayed to maintain NSDC’s image before global summits. A separate FIR (No. 112/22, Economic Offences Wing) and an earlier 2014 case (FIR No. 737/2014, Okhla Industrial Area PS) involving financial misconduct are under review, but sources suggest progress has stalled, possibly due to external pressures.
This crisis highlights governance challenges. Despite Modi’s “Na Khaunga, Na Khane Doonga” pledge, the NSDC irregularities suggest oversight failures. The suppressed KPMG report, lack of action on the dossier, and Tiwari’s removal raise questions about accountability. Unresolved issues include: Why was Tiwari, who recovered ₹214 crore, removed? What delays the KPMG report’s disclosure? How were unverified training centres funded? These lapses risk eroding public trust and deterring international partners, threatening India’s global skilling goals. The NSDC case is not just a financial setback but a challenge to the aspirations of millions of young Indians, demanding urgent, transparent action to restore faith in Modi’s vision.
*Onkareshwar Pandey, Executive Fellow at Woxsen University, was Senior Group Editor of Rashtriya Sahara, Managing Editor of The Sunday Indian magazine in 14 Languages, Editor of ANI – India’s largest TV News Agency, Opening Anchor of Sahara TV, to name a few. He has also authored and edited 10 Books. Currently, he is the CEO & Editor in Chief of Observer Global Media Group, New Delhi. The article published does not necessarily reflect the views of Global Bihari. He can be contacted at editoronkar@gmail.com
