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84                                                                                                                                                        
10. GOVERNMENT SCHEMES IN NEWS 
10.1. PRADHAN MANTRI KAUSHAL VIKAS YOJANA (PMKVY 3.0) 
Why in news? 
The third phase of Pradhan Mantri Kaushal Vikas Yojana (PMKVY 3.0) was launched by Ministry of Skill 
Development and Entrepreneurship (MSDE) 
Background 
• The first version PMKVY scheme was launched in 2015 to encourage and promote skill development in the 
country by providing free short duration skill training and incentivizing this by providing monetary rewards to 
youth for skill certification. The overall idea was to boost employability of youth corresponding to the industrial 
demand. 
o It aimed at training 24 lakh people with monetary reward of INR 8000 for each successful trainee. 
o It was successful in training 19.85 lakh candidates. 
• PMKVY 2.0 (2016-20) was launched by scaling up sectors, geographies and by greater alignment with other 
missions / programs of Government of India such as ‘Make in India’, ‘Digital India’ and ‘Swachh Bharat 
Mission’. 
o The scheme has been extended for one year for skilling of migrant workers 
Objectives Key Features 
• Create an ecosystem 
for the youth to 
make informed 
choices on the 
available skilling 
avenues. 
• Provide support to 
youth for skill 
training and 
certification. 
• Promote 
sustainable Skill 
Centres for greater 
participation of 
private sector. 
• Benefit 8 lakh youth 
over the scheme 
period (2020-21). 
• The basic premise for the scheme is to create skilled and certified workforce, who not 
only contribute towards the growth of India but also drive the country into becoming 
the global skills capital. 
• Core principles of the scheme 
o Major focus on up-skilling / re-skilling with a focus on future skills (industry 4.0) 
courses to increase productivity of existing workforce. 
o Provision of add-on bridge courses and language courses for making scheme 
compatible internationally, to provide international employment opportunities to the 
Indian youth. 
o Focus on Online / Digital mode of Training for wider coverage. 
o Planning from below, with District-level plans being the fundamental instruments for 
implementation 
o Skill gap survey and analysis on a continuous basis to address the industry needs and 
contemporary market demand. 
o Private sector participation in the PMKVY 3.0 to be further encouraged with a greater 
focus on training in industries. 
o Greater cross utilization of available infrastructure with Universities / Colleges / ITIs 
/Polytechnics / Schools. 
o Preferential target allocation shall be done for Aspirational, Left-wing Extremism 
(LWE), North Eastern Regions (NER), Hilly Regions and any other focused districts / 
regions as identified by the Government of India 
o Providing monetary reward to youth post skill certification 
o PMKVY 3.0 shall also aim for phase-wise introduction of vocational courses in school 
curriculum in coordination with Ministry of Education (MoE) through technical 
support under the scheme. 
• Training Target: PMKVY 3.0, being a demand-driven scheme, training target may be 
dynamically fixed as per recommendations of Steering Committee. 
o A Steering Committee shall be constituted by MSDE, at the apex level, for broad policy 
direction. 
• Implementation Structure: This scheme will have two components:  
o Centrally Sponsored Centrally Managed (CSCM) known as the Central Component to 
be implemented by the National Skill Development Corporation (NSDC).  
o Centrally Sponsored State Managed (CSSM) known as the State Component to be 
implemented by the State Skill Development Missions (SSDMs) / respective 
Departments of the States / UTs. 
Page 2


 
84                                                                                                                                                        
10. GOVERNMENT SCHEMES IN NEWS 
10.1. PRADHAN MANTRI KAUSHAL VIKAS YOJANA (PMKVY 3.0) 
Why in news? 
The third phase of Pradhan Mantri Kaushal Vikas Yojana (PMKVY 3.0) was launched by Ministry of Skill 
Development and Entrepreneurship (MSDE) 
Background 
• The first version PMKVY scheme was launched in 2015 to encourage and promote skill development in the 
country by providing free short duration skill training and incentivizing this by providing monetary rewards to 
youth for skill certification. The overall idea was to boost employability of youth corresponding to the industrial 
demand. 
o It aimed at training 24 lakh people with monetary reward of INR 8000 for each successful trainee. 
o It was successful in training 19.85 lakh candidates. 
• PMKVY 2.0 (2016-20) was launched by scaling up sectors, geographies and by greater alignment with other 
missions / programs of Government of India such as ‘Make in India’, ‘Digital India’ and ‘Swachh Bharat 
Mission’. 
o The scheme has been extended for one year for skilling of migrant workers 
Objectives Key Features 
• Create an ecosystem 
for the youth to 
make informed 
choices on the 
available skilling 
avenues. 
• Provide support to 
youth for skill 
training and 
certification. 
• Promote 
sustainable Skill 
Centres for greater 
participation of 
private sector. 
• Benefit 8 lakh youth 
over the scheme 
period (2020-21). 
• The basic premise for the scheme is to create skilled and certified workforce, who not 
only contribute towards the growth of India but also drive the country into becoming 
the global skills capital. 
• Core principles of the scheme 
o Major focus on up-skilling / re-skilling with a focus on future skills (industry 4.0) 
courses to increase productivity of existing workforce. 
o Provision of add-on bridge courses and language courses for making scheme 
compatible internationally, to provide international employment opportunities to the 
Indian youth. 
o Focus on Online / Digital mode of Training for wider coverage. 
o Planning from below, with District-level plans being the fundamental instruments for 
implementation 
o Skill gap survey and analysis on a continuous basis to address the industry needs and 
contemporary market demand. 
o Private sector participation in the PMKVY 3.0 to be further encouraged with a greater 
focus on training in industries. 
o Greater cross utilization of available infrastructure with Universities / Colleges / ITIs 
/Polytechnics / Schools. 
o Preferential target allocation shall be done for Aspirational, Left-wing Extremism 
(LWE), North Eastern Regions (NER), Hilly Regions and any other focused districts / 
regions as identified by the Government of India 
o Providing monetary reward to youth post skill certification 
o PMKVY 3.0 shall also aim for phase-wise introduction of vocational courses in school 
curriculum in coordination with Ministry of Education (MoE) through technical 
support under the scheme. 
• Training Target: PMKVY 3.0, being a demand-driven scheme, training target may be 
dynamically fixed as per recommendations of Steering Committee. 
o A Steering Committee shall be constituted by MSDE, at the apex level, for broad policy 
direction. 
• Implementation Structure: This scheme will have two components:  
o Centrally Sponsored Centrally Managed (CSCM) known as the Central Component to 
be implemented by the National Skill Development Corporation (NSDC).  
o Centrally Sponsored State Managed (CSSM) known as the State Component to be 
implemented by the State Skill Development Missions (SSDMs) / respective 
Departments of the States / UTs. 
 
85                                                                                                                                                        
• Components of the Scheme: 
o Short Term Training (STT): STT is imparted to school/college dropouts or 
unemployed. 
? Training is carried out according to the National Skills Qualification Framework 
(NSQF). 
? Successfully certified candidates shall be provided placement /entrepreneurship 
/ apprenticeship assistance. 
o Recognition of Prior Learning (RPL): Individuals with prior learning experience or 
skills are assessed and certified under this component  
? It aims to align the competencies of the unregulated workforce of the country 
to the NSQF. 
o Special Projects: This component is meant for projects that require some deviation 
from the terms and conditions of Short-Term Training under PMKVY depending on 
special needs in terms of geography, demography and social groups. 
• Branding: It aims to ensure greater visibility and accurate communication of scheme. 
• A candidate may enroll not more than twice for training under PMKVY in the same sector 
(the second time to be for a higher NSQF aligned job role only), or, for a fresh training of a 
different course in the scheme. 
• Unspent balance of PMKVY2.0, may be utilized for PMKVY3.0. 
 
 
 
 
 
 
 
 
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FAQs on Government Schemes in News: January 2021 Current Affairs - Additional Study Material for UPSC

1. What are some government schemes that were in the news in January 2021?
Ans. Some government schemes that were in the news in January 2021 include: - Pradhan Mantri Kaushal Vikas Yojana (PMKVY): This scheme aims to provide skill development training to the youth across the country to enhance their employability. - Pradhan Mantri Fasal Bima Yojana (PMFBY): It is an agricultural insurance scheme that provides financial support to farmers in case of crop loss or damage due to natural calamities. - Atal Pension Yojana (APY): This scheme promotes social security among the working class by providing a guaranteed minimum pension after retirement. - Pradhan Mantri Kisan Samman Nidhi (PM-KISAN): It is an income support scheme for farmers, where they receive direct cash transfers of Rs. 6,000 per year in their bank accounts. - Pradhan Mantri Awas Yojana (PMAY): This scheme aims to provide affordable housing to the urban poor by offering financial assistance for the construction or purchase of houses.
2. What is the objective of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY)?
Ans. The objective of the Pradhan Mantri Kaushal Vikas Yojana (PMKVY) is to provide skill development training to the youth across the country. The scheme aims to enhance the employability of the youth and create a skilled workforce that meets the needs of various industries and sectors. It offers training programs in various sectors such as construction, automotive, healthcare, tourism, and hospitality, among others. The training is provided through affiliated training centers, and upon successful completion, candidates receive a skill certificate and assistance in finding suitable employment opportunities.
3. How does the Pradhan Mantri Fasal Bima Yojana (PMFBY) benefit farmers?
Ans. The Pradhan Mantri Fasal Bima Yojana (PMFBY) is an agricultural insurance scheme that provides financial support to farmers in case of crop loss or damage due to natural calamities. Under this scheme, farmers pay a nominal premium, and in case of any loss, they receive compensation for the damage suffered. The scheme aims to protect farmers from financial distress caused by crop failure or damage and encourage them to adopt modern agricultural practices without the fear of losing their investment. It provides a safety net for farmers and ensures their livelihood sustainability.
4. What are the key features of the Atal Pension Yojana (APY)?
Ans. The key features of the Atal Pension Yojana (APY) are as follows: - It is a voluntary pension scheme for workers in the unorganized sector. - The scheme provides a guaranteed minimum pension after retirement, ranging from Rs. 1,000 to Rs. 5,000 per month, depending on the contribution and age at entry. - The pension amount is fixed and differs based on the contribution period and amount. - The scheme is administered by the Pension Fund Regulatory and Development Authority (PFRDA) and operated through authorized banks and post offices. - The contributions made by the subscribers are invested in pension funds managed by professional fund managers. - The scheme offers tax benefits to the subscribers under the provisions of the Income Tax Act, 1961.
5. How does the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme work?
Ans. The Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme provides income support to farmers in the form of direct cash transfers. Under this scheme, eligible farmers receive Rs. 6,000 per year in three equal installments of Rs. 2,000 each directly into their bank accounts. The scheme aims to provide financial assistance to small and marginal farmers for their agricultural needs and help them lead a dignified life. The funds are transferred electronically through the Direct Benefit Transfer (DBT) system, ensuring transparency and reducing leakages. The scheme is implemented by the Ministry of Agriculture and Farmers Welfare.
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