**Executive Summary**
The Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU) is a Centrally Sponsored Scheme announced in Budgets 2024-25 and 2025-26 with a total outlay of ₹60,000 crore. It aims to modernize vocational training infrastructure and curriculum across 1,000 Government ITIs and 5 National Skill Training Institutes (NSTIs) to align with industry standards. Key progress includes the formation of Steering Committees in 32 States/UTs and the initiation of industry partner selection via Strategic Investment Plans.
**Key Points / Main Content**
**Objectives and Components**
* **Modernization:** Upgrade labs, equipment, and training delivery in ITIs and NSTIs to meet industry standards.
* **Curriculum Alignment:** Introduce long-term and short-term courses focused on new and emerging sectors.
* **Hub and Spoke Model:** Upgrade 1,000 Government ITIs, comprising 200 Hub ITIs and 800 Spoke ITIs, featuring smart classrooms and digital content.
* **Centres of Excellence:** Capacity augmentation of five NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana) and the establishment of National Centres of Excellence for advanced trainer training.
**Financial Framework**
* **Budgetary Outlay:** Total funding of ₹60,000 crore, divided into Central Share (₹30,000 cr), State Share (₹20,000 cr), and Industry Share (₹10,000 cr).
* **International Co-financing:** The World Bank and the Asian Development Bank are co-financing 50% of the Central share equally.
**Implementation and Governance**
* **Governance Structure:** Managed by a National Steering Committee (NSC) at the apex level and State Steering Committees (SSCs) led by State Chief Secretaries.
* **Industry Leadership:** Industry-led Special Purpose Vehicles (SPVs) are empowered to lead upgrades, redesign curricula, and propose training delivery models.
* **Global Partnerships:** Collaborative agreements have been signed with Singapore (NSTI Chennai), Germany (NSTI Hyderabad), and France (NSTI Kanpur) to align training with global standards.
**Impact Analysis**
**State/UT Governments**
**Impact**
States are the primary drivers for selecting ITIs and overseeing the scheme's execution at the local level.
**Action Required**
Submit proposals for ITI upgradation and ensure State Steering Committees (SSCs) are active to guide and monitor implementation.
**Industry Partners**
**Impact**
Industry stakeholders gain significant influence over vocational training through SPVs and Institute Management Committees (IMCs).
**Action Required**
Respond to Requests for Proposal (RFP) by submitting Strategic Investment Plans (SIP) and engage with Expressions of Interest (EOI) for leading NSTI management.
**ITIs and NSTIs**
**Impact**
These institutions will receive upgraded infrastructure, modern equipment, and industry-aligned training modules.
**Action Required**
Operationalize new courses and adopt smart classroom technologies as per the modernized curriculum guidelines.
Key Entities Referenced
Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM SETU): A centrally sponsored scheme aimed at upgrading vocational training quality through modernized ITIs, industry-aligned curriculum, and enhanced trainer capacity.
Ministry of Skill Development and Entrepreneurship (MSDE): The primary ministry responsible for the operationalisation, monitoring, and policy direction of the PM-SETU scheme.
National Steering Committee (NSC): The apex body chaired by the Secretary of MSDE, responsible for providing the overall vision, finalizing operational guidelines, and conducting course corrections for the scheme.
Special Purpose Vehicles (SPVs): Industry-led entities empowered to lead infrastructure upgradation, curriculum redesign, and training delivery models in alignment with local industry needs.
National Skill Training Institutes (NSTIs): Institutes focused on capacity augmentation and advanced trainer training, involving international collaborations with Singapore, Germany, and France.
Ministry of Skill Development and Entrepreneurship
OPERATIONALISATION OF PM–SETU
Posted On: 30 MAR 2026 4:02PM 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.
Pradhan Mantri Skilling & Employability Transformation through Upgraded ITIs (PM SETU) is a
Centrally Sponsored Scheme announced under Budget 2024-25 and Budget 2025-26 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.
Under the PM-SETU scheme industry-led Special Purpose Vehicles (SPVs) would lead the upgradation
and be empowered to propose necessary interventions relating to curriculum redesign, training delivery
models, infrastructure upgradation and industry exposure, in alignment with local industry needs and the
Scheme guidelines.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). Further, MSDE has floated Expression of
Interest for inviting industry partner to lead the Institute Management Committee (IMC) for National Skill
Training Institute (NSTI). Further, in respect to the National Centres of Excellence for Skilling in the
selected NSTIs under the PM-SETU scheme, a Memorandum of Understanding has been signed with
Singapore for NSTI Chennai, a Joint Declaration of Intent has been exchanged with Germany for NSTI
Hyderabad, and a Letter of Intent has been exchanged with France for NSTI Kanpur to strengthen
institutional capacity and align training with global standards.
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.
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SH
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