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GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
RAJYA SABHA
UNSTARRED QUESTION NO. 3797
ANSWERED ON 25.03.2026
IMPLEMENTATION OF PM-SETU FOR MODERNIZATION OF ITIs
3797. #SHRI BRIJ LAL:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state:
(a) the current status of the implementation of Pradhan Mantri Skilling and Employability
Transformation through Upgraded ITIs (PM-SETU), including details of the phased implementation and
the coverage of selected Government Industrial Training Institutes (ITIs) under the Hub and Spoke model;
(b) the details of the institutional framework adopted for the establishment and operationalization of
Special Purpose Vehicles (SPVs) with anchor industry partners for the co-management of ITI clusters; and
(c) the methodology adopted for curriculum restructuring and the introduction of new trades in alignment
with labour market demands and the regional potential of the States?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) & (b) The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM
SETU) scheme aims to enhance the overall quality and relevance of vocational training in the country. The
Scheme has a total outlay of Rs. 60,000 crore (Central Share – Rs. 30,000 crore, State Share – Rs. 20,000
crore and Industry Share – Rs. 10,000 crore).
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).
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). Suitable proposals are
forwarded to the National Steering Committee (NSC) for review and approval. 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).
(c) Under the PM-SETU scheme industry-led Special Purpose Vehicles (SPVs) would lead the
upgradation of ITIs 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.
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