**Executive Summary**
The Ministry of Skill Development and Entrepreneurship (MSDE) has announced a significant budget increase to Rs. 9,540.50 Crore for FY 2026-27, primarily to fund the modernization of 1,000 ITIs under the PM-SETU scheme. The document outlines the expansion of vocational training into emerging sectors like AVGC, Semiconductors, and Green Hydrogen, with a focus on infrastructure upgrades and industry-aligned curricula. Key deadlines include the ongoing formation of Special Purpose Vehicles (SPVs) by States to facilitate the release of funds for scheme roll-out.
**Key Points / Main Content**
* **Budgetary Allocations**
* The total budget estimate for MSDE schemes has risen by approximately 66% compared to FY 2025-26.
* The PM-SETU scheme received the highest allocation of Rs. 6,140.50 Crore for FY 2026-27.
* The Skill India Programme (including PMKVY, JSS, and PM-NAPS) is allocated Rs. 2,800 Crore.
* **PM-SETU Scheme Structure**
* **Component I:** Upgradation of 1,000 Government ITIs using a "Hub and Spoke" model (200 Hubs and 800 Spokes) to establish smart classrooms and modern laboratories.
* **Component II:** Capacity augmentation of five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
* Establishment of sector-specific National Centres of Excellence for advanced trainer training through global partnerships.
* **AVGC Sector Expansion**
* Proposal to establish 15,000 Content Creator Labs in secondary schools and 500 colleges.
* The Indian Institute of Creative Technologies (IICT), Mumbai, is designated as the nodal institution for these labs.
* **Emerging Industry Training (Semiconductor and Green Hydrogen)**
* Launch of two new NSQF-aligned courses: Semiconductor Technician (12th Science entry, Level 4.5) and Green Hydrogen Production Technician (10th entry, Level 3.5).
* PMKVY 4.0 focus on Industry 4.0 roles, including AI/ML, Drone Technology, VLSI Design, and various Green Hydrogen technical and supervisory roles.
**Impact Analysis**
**Ministry of Skill Development and Entrepreneurship (MSDE)**
**Impact:** Acts as the primary funding and monitoring body through the National Steering Committee (NSC).
**Action Required:** Provide consultations and handholding support to States/UTs for scheme roll-out and approve proposals submitted by State Steering Committees.
**State and Union Territory Governments**
**Impact:** Responsible for local implementation and cluster identification (35 States/UTs have already identified clusters).
**Action Required:** Form Special Purpose Vehicles (SPVs) as a prerequisite for fund release and submit formal proposals for ITI upgradation to the NSC.
**Government ITIs and NSTIs**
**Impact:** Targeted for massive infrastructure overhauls, including digital content integration and the creation of smart classrooms.
**Action Required:** Align curricula with new industry needs and implement the "Hub and Spoke" operational model.
**Students and Aspiring Technicians**
**Impact:** Gain access to specialized, high-demand training in future-ready sectors like Semiconductors and Green Hydrogen.
**Action Required:** Must meet specific educational prerequisites (e.g., 12th Science for Semiconductor Technician) to enroll in new NSQF-aligned courses.
Key Entities Referenced
PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs): A centrally sponsored scheme focused on upgrading 1,000 Government ITIs and augmenting capacity in National Skill Training Institutes (NSTIs) to modernize skilling infrastructure.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0: A flagship scheme under the Skill India Program aimed at imparting Industry 4.0-aligned training in new-age sectors like Semiconductors, Green Hydrogen, and AI/ML.
Ministry of Skill Development and Entrepreneurship (MSDE): The primary ministry responsible for policy direction, budget allocation, and the implementation of national skilling initiatives and programs.
National Skills Qualification Framework (NSQF): The technical framework used to align and standardize vocational training courses with industry requirements, particularly for emerging technology sectors.
Indian Institute of Creative Technologies (IICT), Mumbai: The nodal institution designated to support the establishment of 15,000 Content Creator Labs in secondary schools and colleges to promote the AVGC sector.
Ministry of Skill Development and Entrepreneurship
MODERNIZATION OF ITI UNDER PM-SETU AND
AVGC SKILLING
Posted On: 01 APR 2026 4:14PM by PIB Delhi
The total Budget Estimate (BE) allocation for schemes under the Ministry of Skill Development and
Entrepreneurship (MSDE) for FY 2026-27 is Rs. 9,540.50 Crore, as compared to Rs. 5,749.90 Crore in
FY 2025-26. This substantial increase is primarily on account of the increased outlay for the Pradhan
Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme. The
scheme-wise BE for FY 2025-26 and FY 2026-27 is as under:
Sl. Scheme Budget Estimate
No. (Rs. in Crore)
2025-26 2026-27
A. Central Sector Schemes
1. Skill India Programme [Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 2,700.00 2,800.00
+ Jan Shikshan Sansthan (JSS) + Pradhan Mantri National
Apprenticeship Promotion Scheme (PM-NAPS)]
2. Integrated Scheme in Skilling Architecture â 600.00
B. Centrally Sponsored Schemes
3. Strengthening of Infrastructure for Institutional Training (SIIT) 49.90 0.00
4. PM-SETU (Pradhan Mantri Skilling and Employability Transformation 3,000.00 6,140.50
through Upgraded ITIs)
Total (Schemes) 5,749.90 9,540.50
The PM-SETU scheme comprises two components:
i. Component I â Upgradation of 1,000 Government Industrial Training Institutes (ITIs) (200 Hub
ITIs and 800 Spoke ITIs) in a Hub and Spoke model, covering establishment of smart classrooms,modern laboratories, digital content, and new courses aligned to industry needs.
ii. Component II â Capacity Augmentation of five National Skill Training Institutes (NSTIs) located at
Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including setting-up of sector-specific
National Centres of Excellence for skilling with a focus on advanced training of trainers through
global partnerships.
The scheme was launched on 4th October 2025. In FY 2025-26 the scheme has undergone preparatory
phase. MSDE has constituted a National Steering Committee (NSC) chaired by the Secretary, MSDE, as
the apex body for providing overall vision, broad policy direction, finalization of operational guidelines,
and monitoring of the scheme. Under the scheme release of funds for Upgradation of ITIs is contingent
upon the formation of SPV. MSDE is carrying out necessary consultations to support and handhold
States/UTs across various aspects of scheme roll-out. At present, proposals regarding upgradation of ITIs
is yet to be received from State Steering Committee for consideration or approval of National Steering
Committee (NSC).
It is pertinent to mention that the Ministry has made significant progress in enabling States/UTs to move
forward. 35 States/UTs have identified clusters, 32 have formed State Steering Committees, 25 have
created State Budget Heads, 19 have floated EOIs for AIPs, and 12 have floated RFPs for inviting interest
of industry.
The proposal to establish 15,000 Content Creator Labs in secondary schools to promote the Animation,
Visual Effects, Gaming and Comic (AVGC) sector was announced in the Union Budget 2026-27 under
Para 60. The Indian Institute of Creative Technologies (IICT), Mumbai has been identified as the nodal
institution for supporting the establishment of these labs across secondary schools and 500 colleges.
The following measures have been taken to align the National Skills Qualification Framework (NSQF)
with the emerging requirements of the Semiconductor and Green Hydrogen industries:
i. The Directorate General of Training (DGT), under MSDE, has developed two NSQF-aligned
courses under the Craftsmen Training Scheme (CTS) for imparting training through ITIs and
National Skill Training Institutes (NSTIs) to meet the emerging requirements of Semiconductor and
Green Hydrogen industries. The details are as under:
Sr. Name of Course Entry Qualification Duration NSQF Level
No.
1. Semiconductor Passed 12th class examination with One Year 4.5
Technician Science (Physics & Mathematics) or
equivalent
2. Green Hydrogen Passed 10th class examination One Year 3.5
Production Technician
ii. Ministry of Skill Development and Entrepreneurship (MSDE) is implementing its flagship scheme,
Pradhan Mantri Kaushal Vikas Yojana 4.0, since FY 22-23 as a part of Skill India Program for
imparting skill development training through Short-Term Training (STT) and up-skilling and re-
skilling through Recognition of Prior Learning (RPL) to youth across the country. The objective ofthe scheme is to enhance the employability of youth by equipping them with industry-relevant skills
including those related to Semiconductor and Green Hydrogen. Under Pradhan Mantri Kaushal
Vikas Yojana (PMKVY) 4.0, training is imparted in NSQ aligned courses developed by NCVET in
consultation with line Ministries and relevant industries to ensure market relevance. The scheme
focuses on new-age and future skills job roles aligned with Industry 4.0 requirements in areas such
as AI/ML, Drone Technology, Green Hydrogen etc., catering to emerging market demand and
industry needs.
Details of job roles under PMKVY 4.0 in courses related to Semiconductor and Green Hydrogen sectors
are given at Annexure-I.
ANNEXURE-I
Details of job roles under PMKVY 4.0 in courses related to Semiconductor and Green Hydrogen
sectors (as on 31.12.2025):
Scheme Sector Job Role Name
PMKVY Electronics and Hardware VLSI Design Engineer
4.0
PMKVY Electronics and Hardware Embedded Full-Stack IoT Analyst
4.0
PMKVY Electronics and Hardware Embedded Product Design Engineer â Technical Lead
4.0
PMKVY Electronics and Hardware Embedded Software Engineer
4.0
PMKVY Green Jobs Green Hydrogen Plant Entrepreneur
4.0
PMKVY Green Jobs Green Hydrogen Plant Junior Technician â Power
4.0 Sources
PMKVY Green Jobs Green Hydrogen Plant Junior Technician (Desalination)
4.0
PMKVY Green Jobs Green Hydrogen Plant Junior Technician â Storage
4.0
PMKVY Green Jobs Green Hydrogen Plant Junior Technician â Electrolyzer
4.0PMKVY Green Jobs Green Hydrogen Plant Technician
4.0
PMKVY Hydrocarbon Advance Course on Green Hydrogen
4.0
PMKVY Hydrocarbon Concepts of Green Hydrogen
4.0
PMKVY Hydrocarbon Green Hydrogen Plant Supervisor
4.0
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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