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GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
RAJYA SABHA
UNSTARRED QUESTION NO. 600
ANSWERED ON 04.02.2026
IMPLEMENTATION OF PM-SETU FOR STARTUP AND ENTREPRENEURIAL SUPPORT
600#. SHRI MITHLES KUMAR:
SHRI RYAGA KRISHNAIAH:
SHRI KESRI DEVSINH JHALA:
SHRI LAHAR SINGH SIROYA:
SHRI UJJWAL DEORAONIKAM:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to
state:
(a) the objectives and key components of the Pradhan Mantri Skilling and Employability
Transformation through Upgraded ITIs (PM-SETU) scheme to strengthen the startup and
entrepreneurship ecosystem, particularly for early-stage enterprises and first-time entrepreneurs;
(b) the progress made in operationalizing PM-SETU, including institutional arrangements,
stakeholder onboarding and coordination with implementing agencies; and
(c) the manner in which the scheme seeks to integrate skilling, mentorship, credit facilitation and
market access for startups and aspiring entrepreneurs?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) & (c) The Cabinet has approved the Pradhan Mantri Skilling and Employability Transformation
through Upgraded ITIs (PM SETU) scheme to enhance the overall quality and relevance of
vocational training in the country.
The key objectives of the scheme are:
i. To improve the quality of training delivery in Industrial Training Institutes (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 focuses on improving employability outcomes through industry-led governance, and
indirectly supports self-employment and entrepreneurship by enabling learners to acquire industry-
relevant skills, gain exposure to real work environments, and access career guidance, placement
support, and self-employment support through strengthened institutional systems and industry
linkages. The industry-led Special Purpose Vehicles (SPVs) under the Scheme would lead the
upgradation and be empowered to propose necessary interventions relating to curriculum redesign,
training delivery models, infrastructure upgradation, industry exposure, and placement or self-
employment facilitation, in alignment with local industry needs and the Scheme guidelines.
(b) As per the Cabinet approval, the selection of ITIs under PM-SETU will be 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. 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. 25 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. 10 States/UTs
have floated their proposal for inviting the interest of industry.
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