**Executive Summary**
The Cabinet approved the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU) scheme on February 4, 2026. The scheme aims to enhance the quality and relevance of vocational training by upgrading ITIs and NSTIs. States/UTs are required to submit proposals for upgradation in collaboration with industry partners.
**Key Points / Main Content**
* **Scheme Objectives:**
* Improve training delivery quality in ITIs and NSTIs.
* Modernize infrastructure and equipment.
* Introduce industry-aligned courses.
* Strengthen industry linkage for demand-driven skilling.
* Enhance NSTI capacity for training trainers.
* **Scheme Components:**
* **Component I:** Upgrade 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) with smart classrooms, modern labs, digital content, and new courses.
* **Component II:** Augment capacity of five NSTIs in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including sector-specific National Centres of Excellence.
* **Implementation & Governance:**
* PM-SETU focuses on improving employability and supports entrepreneurship.
* Industry-led SPVs will lead upgradation efforts.
* Selection of ITIs will be led by State/UT Governments in consultation with industry.
* MSDE has constituted a National Steering Committee (NSC).
* 25 States/UTs have constituted a State Steering Committee (SSC).
* 10 States/UTs have floated their proposal for inviting the interest of industry.
**Impact Analysis**
**State/UT Governments**
*Impact:* Responsible for leading the selection of ITIs and ensuring alignment with skill needs and local industry.
*Action Required:* Submit proposals for ITI upgradation in collaboration with industry partners.
**Industrial Training Institutes (ITIs)**
*Impact:* To be upgraded with modern facilities and industry-aligned curriculum.
*Action Required:* Participate in the upgradation process.
**National Skill Training Institutes (NSTIs)**
*Impact:* To undergo capacity augmentation and set up sector-specific National Centres of Excellence.
*Action Required:* Participate in the capacity augmentation process.
**Industry Partners**
*Impact:* Collaboration in the selection of ITIs and provision of support for industry-aligned training.
*Action Required:* Collaborate with State/UT Governments and ITIs in the upgradation process.
**Learners**
*Impact:* Improved employability and self-employment opportunities through industry-relevant skills.
*Action Required:* Participate in the upgraded training programs.
Key Entities Referenced
PM-SETU: Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs scheme to enhance vocational training.
Ministry of Skill Development and Entrepreneurship (MSDE): The ministry responsible for the PM-SETU scheme.
Industrial Training Institutes (ITIs): Institutes targeted for upgradation under Component I of the PM-SETU scheme.
National Skill Training Institutes (NSTIs): Institutes targeted for capacity augmentation under Component II of the PM-SETU scheme.
National Steering Committee (NSC): Committee constituted by MSDE to provide overall vision for the PM-SETU scheme.
Ministry of Skill Development and Entrepreneurship
IMPLEMENTATION OF PM-SETU FOR STARTUP
AND ENTREPRENEURIAL SUPPORT
Posted On: 04 FEB 2026 4:48PM by PIB Delhi
The Cabinet has approved the Pradhan Mantri Skilling and Employability Transformation through
Upgraded ITIs (PM SETU) scheme to enhance the overall quality and relevance of vocational training in
the country.
The key objectives of the scheme are:
i. To improve the quality of training delivery in Industrial Training Institutes (ITIs) and NSTIs;
ii. To modernize infrastructure and equipment as per industry standards;
iii. To introduce industry-aligned long-term and short-term courses, especially in new and emerging
sectors;
iv. To strengthen industry linkage for demand-driven skilling and better employment outcomes; and
v. To enhance the capacity of National Skill Training Institutes (NSTIs) for training of trainers.
The scheme comprises of two components:
i. Component I – Upgradation of 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) in a Hub
and Spoke model wherein upgradation includes smart classrooms, modern labs, digital content, and
new courses aligned to industry needs.
ii. Component II – Capacity Augmentation of five NSTIs located in Bhubaneswar, Chennai,
Hyderabad, Kanpur, and Ludhiana, including setting-up sector-specific National Centres of
Excellence for skilling, with focus on advanced training of trainers with global partnership.
PM-SETU focuses on improving employability outcomes through industry-led governance, and indirectly
supports self-employment and entrepreneurship by enabling learners to acquire industry-relevant skills,
gain exposure to real work environments, and access career guidance, placement support, and self-
employment support through strengthened institutional systems and industry linkages. The industry-led
Special Purpose Vehicles (SPVs) under the Scheme would lead the upgradation 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 the Scheme guidelines.
As per the Cabinet approval, the selection of ITIs under PM-SETU will be led by the respective State/UT
Governments in consultation with industry, ensuring alignment with emerging skill needs and local
industrial potential. Accordingly, States/UTs are required to submit proposals for upgradation in
collaboration with industry partners. MSDE has constituted National Steering Committee (NSC) chairedby Secretary, MSDE, an apex body to provide the overall vision for the scheme, facilitate broad policy
direction, finalize operational guidelines, monitor, and conduct course correction. 25 States/UTs have
constituted their State Steering Committee (SSC) led by Chief Secretary of the State/UT, an apex body at
the State/UT level for guiding and overseeing the implementation of scheme. 10 States/UTs have floated
their proposal for inviting the interest of industry.
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 Rajya Sabha today.
***
SH
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