**Executive Summary**
The Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU) scheme, announced on March 23, 2026, aims to modernize vocational training through a ₹60,000 crore investment. The scheme focuses on upgrading 1,000 Government ITIs and five National Skill Training Institutes (NSTIs) to align with industry standards. States and Union Territories are currently required to submit upgradation proposals and Strategic Investment Plans in collaboration with industry partners to facilitate implementation.
**Key Points / Main Content**
**Scheme Objectives and Components**
* **Quality Enhancement:** Modernize infrastructure, labs, and equipment to meet industry standards and improve training delivery.
* **Curriculum Alignment:** Introduce long-term and short-term courses focused on emerging sectors and demand-driven skilling.
* **Hub and Spoke Model:** Component I involves upgrading 1,000 ITIs (200 Hub ITIs and 800 Spoke ITIs) with smart classrooms and digital content.
* **Capacity Augmentation:** Component II focuses on five NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana) to establish National Centres of Excellence for advanced trainer training.
**Financial Framework**
* **Total Outlay:** ₹60,000 crore, distributed between the Centre (₹30,000 crore), States (₹20,000 crore), and Industry (₹10,000 crore).
* **External Financing:** The World Bank and the Asian Development Bank are co-financing 50% of the Central share equally.
**Governance and Implementation**
* **National Oversight:** A National Steering Committee (NSC), chaired by the Secretary of the Ministry of Skill Development and Entrepreneurship (MSDE), provides policy direction and monitoring.
* **State Leadership:** State Steering Committees (SSC), led by Chief Secretaries, oversee implementation; 32 States/UTs have already constituted these committees.
* **Selection Process:** ITIs are selected by State/UT governments in consultation with industry partners based on local industrial potential.
**Monitoring and Evaluation**
* **Performance Indicators:** Progress is monitored via six Disbursement Linked Indicators (DLIs) covering employment outcomes, training quality, and governance.
* **Third-Party Verification:** The Indian Institute of Management (IIM) Indore has been engaged to verify progress against the DLIs.
**Impact Analysis**
**State and UT Governments**
**Impact**
States are the primary drivers of ITI selection and regional implementation, ensuring alignment with local industrial needs.
**Action Required**
Must constitute State Steering Committees (SSC), float proposals to invite industry interest, and submit Strategic Investment Plans (SIPs) to the National Steering Committee.
**Industry Partners**
**Impact**
Industry stakeholders contribute ₹10,000 crore to the scheme and collaborate through Special Purpose Vehicles (SPVs) to ensure training relevance.
**Action Required**
Respond to Requests for Proposal (RFP) by submitting Strategic Investment Plans (SIP) to partner with ITIs for upgradation.
**ITIs and NSTIs**
**Impact**
These institutes will receive upgraded infrastructure, modern labs, and new industry-aligned digital content to improve student employability.
**Action Required**
Adopt the modernized curriculum and operational guidelines finalized by the National Steering Committee.
**IIM Indore**
**Impact**
Acts as the independent third-party verifier for the scheme’s progress.
**Action Required**
Conduct periodic reviews and verification of the six Disbursement Linked Indicators (DLIs) to facilitate fund release.
Key Entities Referenced
Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU): A centrally sponsored scheme with an outlay of ₹60,000 crore designed to upgrade vocational training infrastructure and curriculum in ITIs and NSTIs.
Ministry of Skill Development and Entrepreneurship (MSDE): The central ministry responsible for the overall implementation, policy direction, and constitution of the National Steering Committee for the PM-SETU scheme.
National Steering Committee (NSC): The apex body chaired by the Secretary of MSDE that provides the vision, finalizes operational guidelines, and monitors the scheme's progress.
National Skill Training Institutes (NSTIs): Key institutes targeted for capacity augmentation and the establishment of sector-specific National Centres of Excellence for advanced trainer training.
State Steering Committee (SSC): State/UT level apex bodies led by Chief Secretaries to guide and oversee the ground-level implementation and industry collaboration for ITI upgradation.
Ministry of Skill Development and Entrepreneurship
ITI UPGRADATION UNDER PM SETU
Posted On: 23 MAR 2026 4:46PM by PIB Delhi
The Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU) scheme envisages to
enhance the overall quality and relevance of vocational training with upgraded labs, machines, and
industry-aligned curriculum in the country.
The key objectives of the scheme are:
i. To improve the quality of training delivery in 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 is a Centrally Sponsored Scheme with an outlay of ₹60,000 crore (Central Share: ₹30,000
crore, State Share: ₹20,000 crore and Industry Share: ₹10,000 crore), with co-financing to the extent of
50% of Central share by the Asian Development Bank and the World Bank, equally.
The selection of ITIs under PM-SETU scheme is 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. Ministry of Skill Development and Entrepreneurship (MSDE) has constituted National Steering
Committee (NSC) chaired by 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.
32 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. 19
States/UTs have floated their proposal for inviting the interest of industry. For selection of the industry
partner to form Special Purpose Vehicle (SPV), a Strategic Investment Plan (SIP) by industry is required
to be submitted in response to the Request for Proposal (RFP).Progress under the scheme is monitored through Six (6) Disbursement Linked Indicators (DLIs), which
are periodically reviewed through independent third-party verification. Indian Institute of Management
Indore has been engaged to carry out this verification.
The DLIs are as follows:
I. DLI #1: Employment outcomes for graduates of supported ITIs improved.
II. DLI #2: Access to better quality training programs of supported ITIs increased.
III. DLI #3: Governance and management of supported ITIs strengthened.
IV. DLI #4: State governance and leadership for enabling environment for ITI ecosystem
strengthened.
V. DLI #5: Quality of training at NSTIs increased.
VI. DLI #6: National governance and leadership strengthened.
The State Government of Karnataka has identified two clusters under the PM-SETU Scheme, with Hub
ITIs located in the districts of Bengaluru and Kalaburagi. The State of Karnataka has floated Expression of
Interest (EOI) for inviting industry proposal. At present, no proposal or Strategic Investment Plan (SIP)
from the State is pending for consideration or approval before the National Steering Committee (NSC).
The details of the ITIs selected in Bengaluru Urban and Bengaluru Rural are provided in table below:
State District Hub/Spoke Name of ITI
Karnataka Bengaluru Hub Govt. ITI Peenya, Tumkur Road
Karnataka Bengaluru Spoke Govt. ITI, B.T. Center,Tumkur Rd,Bangalore
Karnataka Bengaluru Spoke Govt. ITI, Domlur,Bangalore
Karnataka Bengaluru Spoke Govt. ITI, Hosur Road,Bangalore
Karnataka Bangalore Rural district Spoke Govt. ITI, Devanahalli
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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