**Executive Summary**
The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme seeks to modernize 1,000 Government ITIs using an industry-led model to enhance vocational training and placement. Currently in the pre-implementation stage, the initiative involves creating Special Purpose Vehicles (SPVs) to manage curriculum and infrastructure upgrades. Key immediate actions include the selection of industry partners through Requests for Proposals (RFPs) and the subsequent submission of Strategic Investment Plans (SIPs) for national approval.
**Key Points / Main Content**
**Scheme Objectives and Structure**
* Aims to upgrade 1,000 Government ITIs to improve skill development and wage potential for youth.
* Utilizes an industry-led model where Special Purpose Vehicles (SPVs) lead implementation.
* Focuses on both upgrading existing courses and introducing new-age courses to align with industry demand.
* Establishes a "Hub and Spoke" model, adding an average of four new courses in Hub ITIs and two in Spoke ITIs.
**Operational Mandates**
* SPVs are empowered to manage curriculum redesign, training delivery models, infrastructure upgrades, and placement facilitation.
* Selection of ITIs is performed by State/UT governments in consultation with industry to ensure alignment with local industrial potential.
* Anchor Industry Partners (AIP) are responsible for proposing Strategic Investment Plans (SIP).
**Implementation Status and Pilot Phase**
* The scheme is currently in the pre-implementation stage, with States/UTs undertaking industry partner selection via RFPs.
* Punjab has identified a pilot cluster featuring Govt ITI Hoshiarpur as the Hub, supported by Spokes in Gurdaspur, Pathankot, Nawanshahr, and Amritsar.
* Final operationalization and training commencement will occur in a phased manner following National Steering Committee (NSC) approval.
**Impact Analysis**
**State/UT Governments**
**Impact**
Responsible for the localized alignment of the scheme and the initial selection of ITI clusters.
**Action Required**
Identify ITI clusters in consultation with industry and manage the Request for Proposal (RFP) process to select industry partners.
**Anchor Industry Partners (AIP)**
**Impact**
Acts as the primary driver for industrial alignment within the ITIs through the SPV framework.
**Action Required**
Prepare and propose a Strategic Investment Plan (SIP) covering curriculum, infrastructure, and delivery interventions.
**National Steering Committee (NSC)**
**Impact**
Serves as the central authority ensuring the viability and quality of proposed upgrades.
**Action Required**
Review and provide approval for the Strategic Investment Plans (SIP) prepared by the SPVs.
**Students and Youth**
**Impact**
Beneficiaries of modernized training infrastructure, new-age courses, and improved industry linkages.
**Action Required**
Engage with the upgraded training programs to improve placement outcomes and wage potential once training commences.
Key Entities Referenced
Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU): A scheme aiming to upgrade 1,000 Government ITIs through an industry-led model to enhance vocational training and employability.
Ministry of Skill Development and Entrepreneurship (MSDE): The primary governing ministry responsible for the implementation and oversight of the PM-SETU scheme.
National Steering Committee (NSC): The apex body chaired by the Secretary of MSDE responsible for approving Strategic Investment Plans (SIP) for ITI upgradation.
Punjab: The state identified for the pilot phase of the scheme, featuring an ITI cluster hub in the Hoshiarpur district.
Special Purpose Vehicles (SPVs): Industry-led entities empowered to implement ITI upgrades, redesign curriculum, and manage training delivery models.
Ministry of Skill Development and Entrepreneurship
IMPACT OF CREATION OF ADDITIONAL SEATS
IN ITIs
Posted On: 23 MAR 2026 4:45PM by PIB Delhi
The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU)
scheme aims to upgrade 1,000 Government ITIs through an industry-led model. The scheme envisages
upgradation of existing courses as well as introduction of new courses in these upgraded ITIs. The scheme
proposes the upgradation of ITIs through industry-led Special Purpose Vehicles (SPVs), which will lead
implementation and be empowered to propose necessary interventions relating to curriculum redesign,
training delivery models, infrastructure upgradation. The scheme envisages both upgradation of existing
courses and introduction of new courses, with an average of four new courses in Hub ITIs and two new
courses in Spoke it is through a Strategic Investment Plan (SIP) proposed by the Anchor Industry Partner
(AIP), leading to the creation of additional training seats.
The selection of ITIs under the PM-SETU Scheme is undertaken by the respective State/UT Governments
in consultation with industry to ensure alignment with local industrial potential and emerging skill
requirements. Accordingly, States/UTs submit proposals for upgradation of identified ITI clusters in
partnership with industry stakeholders. The State Government of Punjab has identified one cluster for the
pilot phase under the PM-SETU Scheme, with Hub ITI located in the district of Hoshiarpur. The details of
ITIs proposed for upgradation in pilot phase in the state of Punjab is provided in the table below.
District Hub/Spoke Name of ITI
Hoshiarpur district Hub Govt ITI Hoshiarpur
Gurdaspur district Spoke Govt ITI Gurdaspur
Pathankot Spoke Govt ITI Pathankot
Nawanshahr Spoke Govt ITI Nawanshahr
Amritsar Spoke Govt ITI Amritsar (Ranjit Avenue)
The PM-SETU scheme is presently in the pre-implementation stage, wherein States/UTs are undertaking
industry partner selection through Request for proposals (RFPs). Following this, a Special Purpose Vehicle
(SPV) is to be constituted, which will prepare a Strategic Investment Plan (SIP) for approval by the
National Steering Committee (NSC), chaired by Secretary, MSDE. Accordingly, operationalization of
upgraded ITIs and commencement of training is proposed to take place in a phased manner.The scheme proposes the upgradation of ITIs through industry-led Special Purpose Vehicles (SPVs),
which will lead to implementation and be empowered to propose necessary interventions relating to
curriculum redesign, training delivery models, infrastructure upgradation, industry exposure, and
placement or self-employment facilitation, in alignment with local industry needs and scheme guidelines.
It is expected to significantly strengthen skill development and employment opportunities by aligning
training with industry demand, improving placement outcomes, and enhancing the wage potential of
youth. The upgradation of ITIs in the state of Punjab particularly the inclusion of Government ITI
Hoshiarpur as hub is expected to facilitate access to modern infrastructure, introduction of new-age
courses, and strengthened industry linkages, thereby supporting local industrial growth through a better-
skilled workforce aligned with industry requirements.
This information was given by the Minister of State (Independent Charge), Ministry of Skill Development
and Entrepreneurship (MSDE), Shri Jayant Chaudhary in a written reply in the Lok Sabha today.
***
SH
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