**Executive Summary**
The Ministry of Skill Development and Entrepreneurship (MSDE) has invited industry leaders to participate in the PM-SETU scheme to upgrade Industrial Training Institutes (ITIs), shifting vocational training towards an industry-led model. The scheme, approved in May 2025 and launched on October 4, 2025, aims to modernize India's workforce and address gaps in the ITI system. States/UTs are releasing Expressions of Interest (EOIs) to identify partners.
**Key Points / Main Content**
* **Scheme Overview:**
* PM-SETU (Prime Minister Skilling and Employability Transformation through Upgraded ITIs) aims to transform vocational training.
* Shifts from government-led to industry-led management and execution.
* Approved in May 2025 with a total budget of ₹60,000 crore.
* Launched on October 4, 2025, to fill gaps in the ITI system.
* **Upgradation Strategy:**
* Upgrade 1,000 Government ITIs using a "hub-and-spoke" model.
* 200 main "hub" ITIs support four "spoke" ITIs with high-tech equipment.
* Improve five National Skill Training Institutes (NSTIs) in Bhubaneshwar, Chennai, Hyderabad, Kanpur, and Ludhiana into Centres of Excellence.
* **Industry Partnership:**
* Requires "Anchor Industry Partners" (AIPs) to upgrade National Skill Training Institutes (NSTIs).
* Upgraded ITIs managed by a Special Purpose Vehicle (SPV) with industry holding 51% ownership and government 49%.
* Co-investment model offering up to 83% government co-funding.
* States/UTs have started the process for sectors like manufacturing, electronics, mobility, and logistics.
* **Industry Role:**
* Design job-linked curricula and build advanced labs/digital learning spaces.
* Upskill teachers and create innovation hubs.
* Businesses gain a skilled worker pipeline and CSR-linked benefits.
* **Current Status**
* Karnataka, Gujarat, Assam, and Chandigarh have released the EOI.
**Impact Analysis**
**State/UT Governments**
* **Impact:** Expected to facilitate and oversee the participation of industry partners in upgrading ITIs within their jurisdiction.
* **Action Required:** Release EOIs to identify suitable partners to transform ITIs.
**Industry Leaders (Anchor Industry Partners)**
* **Impact:** Opportunity to lead vocational training, design curriculum, and access a reliable pipeline of skilled workers.
* **Action Required:** Respond to the EOI to participate in upgrading NSTIs and ITIs and form Special Purpose Vehicles (SPVs) to manage upgraded ITIs.
**Students/Trainees**
* **Impact:** Access to upgraded ITIs with modern equipment, industry-relevant curricula, and better job prospects.
* **Action Required:** N/A
**Teachers/Instructors**
* **Impact:** Opportunities for upskilling and industry experience, enhancing their teaching capabilities.
* **Action Required:** N/A
Key Entities Referenced
PM-SETU (Prime Minister Skilling and Employability Transformation through Upgraded ITIs) scheme: A scheme focused on upgrading Industrial Training Institutes (ITIs) with industry involvement.
Ministry of Skill Development and Entrepreneurship (MSDE): The ministry responsible for implementing the PM-SETU scheme.
Industrial Training Institutes (ITIs): The vocational training centers that are being upgraded under the PM-SETU scheme.
National Skill Training Institutes (NSTIs): These institutions will be improved to create global Centres of Excellence under PM-SETU.
Directorate General of Training (DGT): An organization working with the MSDE to implement the PM-SETU scheme.
Ministry of Skill Development and Entrepreneurship
Ministry of Skill Development and
Entrepreneurship invites Industry to lead
Upgradation of ITIs under PM-SETU Scheme
प्रव तथ: 24 DEC 2025 5:26PM by PIB Delhi
In a major step toward modernizing India’s workforce, the Ministry of Skill Development and
Entrepreneurship (MSDE)-through the State/UT governments and the Directorate General of Training
(DGT) has officially invited industry leaders to join the PM-SETU (Prime Minister Skilling and
Employability Transformation through Upgraded ITIs) scheme. This initiative represents a significant
change in how vocational training works, moving from government-led policy to a model where the
industry takes the lead in managing and executing training.
The Ministry has released an Expression of Interest (EOI) to find "Anchor Industry Partners" (AIPs) for
the upgradation of National Skill Training Institutes (NSTIs). Simultaneously, States/UTs have also started
releasing EOIs to identify partners who will help transform select Industrial Training Institutes (ITIs). So
far, Karnataka, Gujarat, Assam, and Chandigarh have released the EOI.
The PM-SETU scheme was approved by the Union Cabinet in May 2025 with a total budget of ₹60,000
crore. It was officially launched by the Prime Minister on October 4, 2025, to fill existing gaps in the ITI
system by making training more relevant to the modern job market. The government plans to upgrade
1,000 Government ITIs using a "hub-and-spoke" model, where 200 main "hub" ITIs will each support
approximately four "spoke" ITIs with high-tech machinery and equipment. Additionally, the scheme will
improve five National Skill Training Institutes (NSTIs) located in Bhubaneshwar, Chennai, Hyderabad,
Kanpur, and Ludhiana to create global Centres of Excellence.
A unique feature of PM-SETU is its industry-led governance. Each upgraded ITI will be managed by a
Special Purpose Vehicle (SPV), which is a partnership where industry leaders hold 51% ownership and the
government holds 49%. This co-investment model allows companies to lead the transformation while
receiving up to 83% in government co-funding. The States/UTs have already started the process, opening
doors for participation in sectors like advanced manufacturing, electronics, mobility, and logistics.
As Anchor Industry Partners, companies will play a central role in designing job-linked curricula and
building advanced laboratories and digital learning spaces. They will also focus on upskilling teachers
through industry experience and creating innovation hubs on campus. In return, businesses gain a reliable
and scalable pipeline of skilled workers and apprentices, directly aligning talent development with their
own growth strategies along with CSR-linked benefits. This structural reform is designed to ensure that
India’s skilling ecosystem meets the nation’s workforce needs.
Link to Apply :https://linktr.ee/Skill_India
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