A recent audit by the Comptroller and Auditor General of India (CAG) has uncovered significant irregularities in the implementation of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), the government's flagship skill development scheme. The findings, tabled in the Lok Sabha, are crucial for UPSC aspirants as they touch upon governance, policy implementation, and accountability.
Glaring Gaps in Skill Development Scheme
The CAG report, covering PMKVY phases from 2015 to 2022, identified several alarming issues. Auditors found instances where the bank account number field was populated with "11111111111". More strikingly, the same photograph was used for multiple beneficiaries in states like Bihar, Uttar Pradesh, Maharashtra, and Rajasthan, raising serious questions about the authenticity of training records.
Other problems included payouts pending for over 34 lakh candidates and the existence of numerous shuttered training centres. The CAG noted that these anomalies in the Skill India Portal data did not provide adequate assurance about the true identity of scheme participants.
In response, the Ministry of Skill Development stated that face-authentication, geo-tagged attendance, and a live dashboard have now been operationalised to address these gaps.
MGNREGA Overhaul: Empowerment or Weakening?
Another critical topic for UPSC is the proposed transformation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). The Viksit Bharat-Guarantee for Rozgar and Ajeevika Mission (Gramin) Bill, 2025, has sparked debate.
Economist Jean Drèze argues the Bill disempowers workers and demotivates states by introducing a central "switch-off clause" and changing the funding pattern to a 60/40 cost-sharing model between the Centre and states. He contends this removes the open-ended funding guarantee that was the scheme's cornerstone.
Conversely, Union Minister Shivraj Singh Chouhan writes that the Bill strengthens entitlements by increasing guaranteed employment to 125 days, removing disentitlement provisions, and linking work to creating durable assets like water security infrastructure.
Nuclear Power Sector Opens to Private Players
In a landmark shift, Parliament passed the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India (SHANTI) Bill, 2025. This new law allows private sector participation in building and operating nuclear power plants, a domain previously restricted to public sector entities.
The Bill replaces the Atomic Energy Act, 1962, and the Civil Liability for Nuclear Damage Act, 2010. It introduces graded liability caps for operators based on plant size and grants statutory status to the Atomic Energy Regulatory Board (AERB). A key and contentious change is the removal of the "right of recourse" clause, which earlier allowed plant operators to claim compensation from equipment suppliers after an accident.
Transparency Concerns with the SHANTI Bill
The SHANTI Bill has also raised alarms regarding transparency. Its Section 39 explicitly overrides the Right to Information (RTI) Act, 2005. It empowers the Centre to declare information on nuclear substance locations, plant design, and regulatory submissions as "restricted." Once notified, such information is completely barred from disclosure under the RTI Act, removing the public interest override and appeals process available under the existing transparency law.
Understanding the Rupee's Depreciation
For the economy section, the ongoing weakness of the Indian rupee against the US dollar is a vital issue. Despite India's strong growth and controlled inflation, the rupee has depreciated by almost 6% over the past year.
Analysts point to trade headwinds, including higher US tariffs on Indian goods, and reduced foreign portfolio investments as key reasons. While the Reserve Bank of India (RBI) intervenes by selling dollars to stabilise the currency, its actions in the forward market are found to be more impactful than spot interventions.
For UPSC aspirants, these interconnected issues—governance flaws in PMKVY, the MGNREGA reform debate, the strategic opening of the nuclear sector, associated transparency concerns, and macroeconomic challenges—provide rich fodder for both Preliminary and Mains examinations, especially in GS-II and GS-III.
