Project Execution Details

  1. The Siemens Centers of Excellence were aimed at bridging the skill gap between industry and academia. Siemens centers are also operating in other states like Gujarat, Tamil Nadu, Jharkhand, Karnataka, and Chattisgarh under the same model.
  2.  10% of the project cost is to be contributed by the Govt of Andhra Pradesh, while the rest 90% is borne by Siemens.
  3.  The cost of the project per cluster is Rs. 559.33 crores (exclusive of taxes), out of which the government of AP is to bear Rs. 55 crores. While the overall project cost is Rs. 3355.98 crores (exclusive of taxes), the cost to the government of Andhra Pradesh for all 6 clusters is Rs. 330 crores (exclusive of taxes). 
  4. By May 2018, 6 clusters were established to form 6 Centers of Excellence (COE) and 34 Technical Skill Development Institutes (T-SDI) in 40 identified engineering and polytechnic colleges. By March 2020, over 2,13,000 candidates were trained.
  5. Colleges with Siemens Centers issued acknowledgment letters about the implementation of the project and transfer of assets after the agreement period of 3 years (extended due to COVID) was done by August 2021.
  6.  Among the states that implemented this project, Andhra Pradesh established one of the highest numbers of clusters and trained the highest number of candidates. After AP started the project, other states started emulating the hub and spoke model of training centers.
  7.  Andhra Pradesh ranked first in the country in the India Skills Report 2018 and 2019 because of the efforts of the then TDP government
  8.  DesignTech MD Vikas Khanvelkar clarified in detail how the project is executed with the coordination of the government of Andhra Pradesh, APSSDC, Siemens, and the colleges shortlisted.
  9. Dr. Arja Srikanth (MD, APSSDC) issued a letter of appreciation to DesignTech for the successful implementation of the project.
Project AspectAndhra PradeshGujaratJharkhandTamil NaduKarnataka
Project inception20152013201620172017
Government contribution10%15%10%10%10%
ModelTotal of 40 institutes arranged in 6 clusters in a Hub and Spoke model where each cluster is with 1 CoE and 5 tSDIs approxTotal of 11 training institutes3 clusters in a Hub and Spoke model where each cluster is with 1 CoE and 5 tSDIs approx1 cluster with 1 CoE and 5 tSDIsTotal of 4 training institutes
ReferencesSiemens-DesignTech Proposal
CITD Valuation
Economic Times
Desh Gujarat
Siemens Press Release
MoU with Anna University
Economic Times
Deccan Herald
S. NoTimeline Events
110th September
The state government issued G.O.Ms.No.47, Higher Education Department 10-09-2014 initiating the process for the establishment of the Andhra Pradesh State Skill Development Corporation (APSSDC).

226th September
On 26-09-2014, G.O.Ms.No.48, Higher Education Department was issued approving Articles of Association and Memorandum of Association for incorporation of Andhra Pradesh State Skill Development Corporation (APSSDC) under Section 8, Companies Act, 2013.

December 2014A team has visited the Siemens centers already established in Gujarat, conducted a detailed study of centers, and submitted a report.
49th February 2015
A comprehensive presentation was made to the Govt. of AP about Skill development and training activities by Siemens and their intent to collaborate with the Govt. of AP as was done in Gujarat.
516th February 2015In its 1196th meeting, the Council of Ministers approved in principle the establishment of six clusters of Siemens centres in AP.

604th March 2015In its 1197th meeting, the Council of Ministers sanctioned the budget corresponding to the government's share of the investment to establish the centres. An amount of Rs.360 crores was budgeted for the department for the Siemens project. The same was split as Rs.25 crores under TSP, Rs. 42 crores under SCSP, and Rs. 293 crores under general head.
712th March 2015Estimates are approved by the State Legislature under Annual Financial Statement 2015-16.
830th June 2015Government sanctioned the establishment of 6 clusters and permitted the MD&CEO of APSSDC to enter in to an agreement to carryout the project, Vide G.O M.S 4 dt 30.06.2015
95th October 2015GoAP decided the formation of Two committees to monitor the Siemens Project and for scrutinizing and identifying the Skill Development Centres for imparting training under Siemens Project Vide G.O Ms. No. 8 dt. 05-10-2015
1021st October 2015Mr. L Prem Chandra Reddy takes charge as the Secretary and MD AP Skill Development corporation and he continued till 31st March 2016.
115th November 2015A team visited Siemens centers stablished in Gujarat on 5th & 6th November 2015, conducted a detailed study of centers and submitted a report ( Team members : Sri L Premchandra Reddy IAS, Secretary Skill Development Dept., Smt. K Sunitha IAS, Secretary Finance Dept. K Lakshminarayana, Director APSSDC, Dr. Ghanta Subbarao, Spl Secretary Skill Development)
127th November 2015Submission of report by the team to the GoAP. Recommendation for release of amount to APSSDC.
134th December 2015Additional agreement for payment modalities by Mr. L Premchandra Reddy, as Secretary (Skill Development), mentioning the government of Andhra Pradesh to contribute 10 percent of the project cost with 55 cr per cluster (excluding taxes), and the overall project cost as 330 crores.
1418 Dec 2015

Letter from APSSDC to Central Institute of Tool Design(CITD) established by Govt. of India, a pioneering Institution in the field of Tool Engineering in the Country and conducting similar training facilities for more than three decades for the valuation of the Siemens Project of Skill Development, to validate the valuation of the project as proposed by DesignTech and Siemens.
1518th March 2016CITD submitted a valuation report stating that the project costing of Rs. 559.33 cr per cluster was justified.
1631st March 2016APSSDC released the final tranche of payment of amount of Rs. 34.30 Crores to DesignTech towards project implementation. All funds (total of 371.25 crores) to DesignTech were released by Mr. Premchandra Reddy as the Secretary of Skill Development Department and the MD of Skill Development Corporation.
1725th April 2016GoAP issued orders on the selection of institutions for establishment of Siemens centres vide Go.MS.No. 05 SDE&I(SKILLS) Department dt.25.04.2016.
1831st May 2017
Two Siemens centres are established with all laboratories and ready for training by May 2017. V.R Siddhartha Engineering College Vijayawada and VVIT Guntur).
1931st December 2017Establishment of 19 Siemens centres out of 40 centres by DesignTech is completed.
2031st May 2018Establishment of all 40 Siemens centres by DesignTech is completed.
Project continues after the YCP government comes to power
21Feb 2020Dr. Arja Srikanth (MD, APSSDC) gives a letter acknowledging and appreciating the efforts of DesignTech in running 40 (CoEs & tSDIs) centers across the state and training more than a lakh students
2231st March 2020A total of 2,13,000 candidates were trained in Siemens centers.
23August 2021Handover of assets related to Siemens centres by DesignTech to the Joint Operational control of APSSDC and the hosting institution.
Cluster Name Approx No. of Students Trained
East Godavari34,000
Grand Total2,13,000
No.of students placed70,000

Relevant documents for the section:

Siemens trained data

Year-wise Students trained in Siemens centres up to Feb 2021.

Krishna Cluster

Vishakapatnam Cluster

Anantapur Cluster

Guntur Cluster

East Godavari Cluster

Chittoor Cluster

1The Hindu :Siemens Centre of Excellence to make students industry-ready
The State government has partnered with the German multinational Siemens to start a ‘Siemens Centre of Excellence’ at Andhra University College of Engineering (AUCOE) which is soon expected to be formally inaugurated by the Chief Minister soon.
2The Hindu :Big push to skill development training
Labour and Employment Minister K. Atchannaidu expects the skill development centers, funded by Siemens with a total investment of Rs. 3,300 crores (state’s share of Rs.330 crores), to begin operating on May 1.
3The Hindu :Students to be made globally competitive
Rahul Sehgal from Siemens emphasized the global demand for skilled professionals surpassing 47 million by 2020. Ghanta Subbarao, Managing Director and CEO of APSSDC mentioned the selection process for running a COE or t-SDI will be based on specific criteria and audits.
4The Hindu:Skill Development Corporation to set up six Centers of Excellence
Commissioner of Collegiate and Technical Education B. Udaya Lakshmi on thursday said that the A.P State Skill Development Corporation (APSSDC), in collaboration with its industrial partner Siemens, will set up six Centers of Excellence (COE) in the next few months.
5The Hindu :AU to set up two skill development centers
Work is underway, with Siemens supplying heavy equipment currently stored in various engineering labs. This year, we plan to construct a dedicated block to house all the equipment officially naming it the Siemens Centre, said Prof. Umamaheswar, Registrar, Andhra University.

6The Hindu :SACET to host APT-SDI center
The SACET is one of the two colleges in the Prakasam district selected for improving the skills of engineering students by APT-SDI in collaboration with Siemens, according to St.Ann’s group of colleges members.

7The Hans India :Siemens SDI offers all courses of APSSDCThe Siemens Technical Skill Development Institute at St. Ann’s College of Engineering & Technology now provides all courses available with APSSDC, revealed APSSDC project director Dr. B Nageshwara Rao.
8The Hans India :Training course in welding begins
A two-week expert-level course in welding trade kicked off on Tuesday for a batch of 23 trainees at the Sri City-Siemens Technical Skill Development Institute (SST-SDI).
9The Hans India :SACET imparts skill development training in Chirala
St Ann’s College of Engineering and Technology in Chirala has conducted the skill development training for the students from Bapatla Polytechnic College in association with the Andhra Pradesh State Skill Development Corporation.
10The Hans India :Students told to utilize technical resources
The Prakasam Engineering College in Kandukur has started the 10-day Siemens Training Programme for 75 selected girls in association with the APSSDC and Siemens Skill Development Centers.
S. NoAgencyLink to Document
1Planning Department, Uttar PradeshAnalysis of skill development interventions in Andhra Pradesh
2Development, Monitoring and Evaluation officeCase Study
3KPMG'India Soars Higher' Report
Siemens Project featuring in the reports of training colleges
4Andhra UniversitySummer Internship Letter
5Sree Vidya NikethanSiemens skill development programme brochure
6Andhra UniversityYearly report
7Vemu Institute of TechnologySix days workshop on "Solid Edge"
8Annamacharya Institute of Technology and sciencesWorkshop Report
9Rajiv Gandhi University of Knowledge Technologies - RK valleyAnnual Report
10Anil Neerukonda Institute of Technology & SciencesInternship certificates
11Gayatri Vidya Prasad engeneering collegeAPSSDC SIEMENS labs
12DNR college of Engineering and technologyAPSSDC SIEMENS labs
14Jawaharlal Nehru Technological university, KakinadaCircular

Yes. Council of Ministers evaluated the project proposal and accordingly budgeted the amount as part of the Annual Financial Statement of 2015-16 and the amount was passed by the state assembly.

APSSDC conducted a field study on SIEMENS centres in Gujarat and submitted a report and subsequently GO.MS.NO.4 30/06/2015 (Publicly Available on under Skill Development Entrepreneurship and Innovation Department) was released detailing the costs and cluster model to be implemented.

Relevant Documents:



Establishing SIEMENS Centers of Excellence_GOO

G.O.Ms.No. 4 – Skill Development, Entrepreneurship and Innovation Department – Clearance of project. Establishing SIEMENS Centers of Excellence (COEs) and Technical Skill Development Institutions (TSDIs) and Skill Development Centers (SDCs) in the State of Andhra Pradesh – Approval of Memorandum of Understanding (MoU) – Orders – Issued.

Monitor Committee on Siemens

G.O.Ms.No.8 Skill Development, Entrepreneurship and Innovation Department – Formation of committees to monitor the SIEMENS Project programme – Order–Issued.

Cabinet Resolution

Council of Ministers Resolution no.33/2015 – Establishment of Siemens centre of excellence.

Yes, a detailed evaluation was done by the Central Institute of Tool Design that concluded that the project cost indicated by Siemens and DesignTech is reasonable. A total of 559.33 crores indicated by Siemens for each cluster was certified as acceptable by the Central Institute of Tool Design.

  1. For Services, a total of 13.31 crores per cluster indicated by Siemens was evaluated to be acceptable.
  2. For Digital courses, 249.75 crores per cluster indicated by Siemens to offer 476 courses is certified to be acceptable.
  3. For software, a total of 247.78 crores per cluster indicated by Siemens was certified to be acceptable.
  4. For Hardware, a total of 48.48 crores per cluster indicated by Siemens was certified acceptable.

A total cost of 559.33 crores per cluster was certified to be reasonable by the CITD per cluster.

Relevant Documents:



CITD Evaluation

Details of Valuation made on the proposal.

APSSDC, Siemens, DesignTech are the vital stakeholders in the project.

S No





Identification of the COEs and T-SDIs, communication to COEs and T-SDIs, allocation of Lab spaces.



SISW is the Technology Partner to provide software and also be the Program Adviser to DesignTech. Responsibilities include conducting Industry interactive sessions, and student contests, training and certifying DesignTech faculty, and conducting certification programs.



System Integrator and Implementor for the whole project as in other states like Gujarat, Tamil Nadu and Jharkhand. Responsibilities include Installation of software and hardware, setting up labs, enrolling students, training teachers and students, and conducting industry interactive sessions, student contests, and certification programs.


Institutes identified for skill development 

Allocation of Lab spaces and operating the project for a minimum duration of 10 years.

Yes, Design Tech is Siemens’ implementation partner as in other states like Gujarat, Tamil Nadu and Jharkhand. Design Tech is the implementer and system integrator for the overall project in active collaboration with Siemens Industry Software, India.

Yes, all 40 centers were established by 31st May 2018 and approximately 2.13 lakh students were trained in these centers by Mar 2020. Assets after the 3 year project completion period are also handed over to APPSDC and the hosting institute.

No. The centres are established in a mix of government and government-aided colleges.

  1. 1 in every 4 institutes where SIEMENS has set up Skill Development centres are government institutes. Others are government-aided institutions.
  2. A total of 2.13 lakh students have been trained through the skill development centres and 70,000 of these trained students have obtained employment.
  1. Siemens COE and t-SDI aim to train Engineering, Diploma students, and Faculty on world-class Siemens Equipment & Software. The COE and T-SDI provide training by Siemens-certified partners. COE and T-SDI benefit the student community immensely as they are trained on the same Equipment/Software that is used by Industry. Participants acquire industry best practices through this training. The globally valid Siemens Certification, after completion of training, increases employability.
  2. Siemens develops software for various industry segments like Automotive, Industrial Machinery, Industrial automation, Aerospace and Defence, Shipbuilding, etc.
  3. For all these sectors to use their software they need trained manpower. That’s the reason why they support skill development centers across the globe by providing their software free so that people can get trained on it and be ready to take up jobs on their software.
  4. It’s a Win-Win situation for both Siemens and the state implementing it. Siemens would get their required manpower and the state would generate jobs for unemployed youth.
  5. In 90:10 Private Public Technology partnership scenarios usually it is an MOU and Grants process that is followed by IT Companies and Govts. This kind of engagement does not generally involve floating float Tenders, as aptly followed by Siemens/DesignTech & previous Govt of AP.
  6. The same approach was followed Globally and in India by Siemens in partnership with several Colleges, Universities and State Govts like Gujarat, Karnataka, Telangana, A.P. etc and Universities/Colleges like Cincinnati, Washington, NIT Warangal, MIT (Manipal Institute of Technology)

Allegation 1: Nothing on the ground, No money spent


  •   In reality, 34 t-SDIs (Technical skill development institutes) and 6 COEs (Centre of Excellence) are grounded and functioning.
  • This was substantiated by a Senior officer in the Jagan Reddy govt Dr. Arja Srikanth who had given an appreciation letter to DesignTech (partner of Siemens) for the successful implementation of the project in AP.
  •  The handover of all these skill development institutes to the respective colleges from Siemens-DesignTech after the hand-holding period also happened during Jagan Reddy’s tenure from August 2021.
  • All those institutes which includes IIIT Idupulapaya have given letters in writing that all the equipment and software were properly supplied and are in complete working condition. These have even signed the stock registers too.
  • The founder of DesignTech said ‘So right from scratch to what our labs which you see today, we started very ordinary from the standard rooms of the institutes and a total 286 labs spread over 2,50,000 sqft across 40 locations have been set up… All these have been provided and the site has been approved by us,it is a huge task and once the site is ready they started getting the equipment. For that we needed 50 trucks fully loaded of material that were delivered across locations under our supervision boxes were unpacked and put at proper places and finally the installation process was done, look at the labs with current setup.’ 

Allegation 2: Money was routed through various shell companies and looted


  •  It is entirely an issue of GST tax evasion, whatever has been routed to a few companies from Skillar is to generate some fake invoices and claim GST tax credit.
  •   How is AP govt responsible if some company doesn’t pay tax? From our side, we have released the amount of 371 cr which includes the required GST tax component also, so our tax obligation ends there.
  •  Even in the remand report of CBN, they have not produced evidence of any money trail linking CBN or any of his family members or companies. 
  •  They have even written on page 21 para 10 “The End monies which were apparently drawn out as cash and parked with Vikas Khanvilkar etc are required to be ascertained”. 
  •   This shows that they themselves have stated that the money trail is not ascertained to date, so how can they link anything to CBN.

Allegation 3: Contract with Siemens without inviting tender.


  •  Siemens’s skill development project is based on a 90% grant in kind from Siemens, hence it is not required to float tenders when we are receiving something as a grant
  •   We should also understand that this software is a patented software of Siemens, no other company in the market would have this, It is exclusive to Siemens, so where is the question of Tender here? 
  •  Did Jagan Reddy call for tenders when he signed an agreement with Byjus? He was complimenting Byjus Ravindran for his large heart and generosity for providing his content, now we all know that Byjus is bankrupt and facing Allegations.
  •  The TDP government signed an agreement with Siemens only after a team of IAS officers from AP examined the agreement and the project operational in Gujarat.
  •  All the 9 states that implemented this project in India including Gujarat, Tamilnadu, Karnataka, Jharkhand, etc. have not floated any tenders for this project and have directly signed agreements
  •  Even Narendra Modi when he was chief minister of Gujarat did not call any tenders when he signed an agreement with Siemens, Can Mr Jagan Reddy dare to question the Prime minister on this?
  • Many international institutes like Washington state university, Cincinati State Technical and Community College, and Southern Virginia highier education center (SVHEC) have all received millions of dollars as grant from Siemens and benefitted, Why not Andhra Pradesh?

Allegation 4: Why was there such a rush to implement this project?


  •  There was absolutely no rush when this project was implemented in AP, due diligence was carried out before taking every step.
  • G.O M.S 4 dt 30.06.2015 was released on 30-06-2015 and the first payment of 185 crores was released on 5-12-2015, It was only after 5 months after signing the agreement that the first payment was released.
  •  So where is the alleged rush? Teams were sent to Gujarat to study the project being implemented there, CITD (Central Institute of Tool Design) was approached to evaluate the entire project, so all the required steps to ensure transparency have been taken while implementing this project.

Allegation 5: There is a corruption of Rs. 371 crores in the project


  The Forensic Auditor’s report did not have the details of how much money was exactly misappropriated. Different figures are circulating in the media as there is no clarity about the amount being cited. Forensic auditor’s conclusion of not engaging a professional evaluator to evaluate project cost is incorrect as a central government agency, the Central Institute of Tool Design was engaged for the same.   Physical audit was eliminated from the scope of work of forensic auditor suspiciously in a pre-bid meeting though it was initially included. The investigation was based on inadequate information and faulty methodology to directly make any allegations of misappropriation.     

  •   Server IP address of the forensic auditor appointed by the government, Sarath and Associates, and the auditor of Jagan’s own companies, IVS and Associates, is the same. Domain of Sarat and associates: Domain of IVS and associates:

                                               IP Address comparison:


                           Closeness between the websites of both these agencies suggests there is a reason to doubt a potential link between forensic auditor and the government.