Executive Summary:
The Ministry of Skill Development and Entrepreneurship addresses Lok Sabha question 3578 regarding the National Scheme for Upgradation of Industrial Training Institutes (ITIs) and setting up National Centres of Excellence (NCOEs) for skilling. The scheme, approved by the Cabinet, aims to improve training quality, modernize infrastructure, and enhance industry linkages. It includes upgrading 1,000 ITIs and augmenting five National Skill Training Institutes (NSTIs). State/UT governments are required to submit proposals for ITI upgrades in collaboration with industry partners.
Key Points / Main Content:
* **Scheme Overview:**
* National Scheme for Upgradation of ITIs and setting up NCOEs for skilling has been approved.
* Estimated cost: ₹60,000 crore (Central Share: ₹30,000 crore, State Share: ₹20,000 crore, Industry Share: ₹10,000 crore).
* **Objectives:**
* Improve the quality of training delivery in ITIs.
* Modernize infrastructure and equipment as per industry standards.
* Introduce industry-aligned long-term and short-term courses, especially in new and emerging sectors.
* Strengthen industry linkage for demand-driven skilling and better employment outcomes.
* Enhance the capacity of National Skill Training Institutes (NSTIs) for training of trainers.
* **Components:**
* Component I: Upgradation of 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs). Upgrades include smart classrooms, modern labs, digital content, and new courses aligned to industry needs.
* Component II: Capacity Augmentation of five NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana), including setting up sector-specific National Centres of Excellence for skilling.
* **Implementation:**
* Through Special Purpose Vehicles (SPVs) formed in partnership with Anchor Industry Partners (AIPs).
* **Upgradation Numbers:**
* Proposal to upgrade 1,000 ITIs across the country, including Tamil Nadu.
* Proposal to set up five National Centres of Excellence for skilling within NSTIs, including Chennai.
* **Partnerships:**
* Discussions held with representatives from countries like Australia, Germany, Singapore, France, Republic of Korea, and Japan for cooperation in curriculum improvement, training of trainers, and infrastructure modernization.
* **ITI Selection Criteria:**
* Selection led by State/UT Governments in consultation with industry.
* Alignment with emerging skill needs and local industrial potential.
* Selection depends on proposals received from State/UT Governments, subject to readiness and industry collaboration.
* **Beneficiaries:**
* Scheme aims to improve access to training and employment for all, including students from rural and economically weaker backgrounds.
* State/UTs and industries are encouraged to include ITIs in rural locations.
* Provisions for courses linked to local industry and livelihoods, and student support services.
Impact Analysis:
* **State/UT Governments:**
* *Impact:* Responsible for leading the selection of ITIs for upgradation in consultation with industry and submitting proposals.
* *Action Required:* Collaborate with industry to identify ITIs for upgradation, develop proposals aligned with skill needs and local potential, and submit these proposals to the Ministry.
* **Industry Partners (Anchor Industry Partners - AIPs):**
* *Impact:* Involved in the implementation through SPVs, ensuring skill training relevance and outcome-based delivery.
* *Action Required:* Partner with State/UT Governments in identifying ITIs, collaborate in developing relevant curriculum, and participate in the SPVs for implementation.
* **Students (especially from rural and economically weaker backgrounds):**
* *Impact:* Improved access to better training and employment opportunities through upgraded ITIs and relevant courses.
* *Action Required:* Utilize the enhanced facilities and courses offered by the upgraded ITIs to gain relevant skills and improve employment prospects.
* **National Skill Training Institutes (NSTIs):**
* *Impact:* Capacity augmentation, including setting up sector-specific National Centres of Excellence for skilling, with a focus on advanced training of trainers.
* *Action Required:* Enhance training programs for trainers, establish and manage the National Centres of Excellence, and collaborate with global partners for curriculum improvement and modernization.
Key Entities Referenced
National Scheme for Upgradation of Industrial Training Institutes ITIs: A government scheme approved by the Cabinet for upgrading Industrial Training Institutes (ITIs) and establishing National Centres of Excellence (NCOEs) for skilling.
National Centres of Excellence NCOEs: Centres to be established for skilling as part of the National Scheme for Upgradation of ITIs.
Industrial Training Institutes ITIs: Institutes that are the focus of the upgradation scheme, aiming to transform them into advanced training centers.
Tamil Nadu: A state in India where ITIs are proposed to be upgraded under the scheme.
National Skill Training Institutes NSTIs: Five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana where capacity augmentation will be carried out including setting up sector-specific National Centres of Excellence for skilling.
Bhubaneswar: City in Odisha, India where one of the five NSTIs is located.
Chennai: City in Tamil Nadu, India where one of the five NSTIs is located and where a National Centre of Excellence for Skilling is proposed.
Special Purpose Vehicles SPVs: Entities formed in partnership with Anchor Industry Partners (AIPs) for implementation of the scheme to ensure skill training relevance and outcome-based delivery.
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. 3578
ANSWERED ON 11.08.2025
IMPLEMENTING SCHEME FOR UPGRADATION OF ITIs
3578. SHRI MALAIYARASAN D:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be
pleased to state:
(a) whether the Government is implementing any scheme for the upgradation of
Industrial Training Institutes (ITIs) into advanced training centres or National Centres of
Excellence;
(b) if so, the details of the scheme including objectives, timeline, and funding pattern;
(c) the number of ITIs upgraded or proposed to be upgraded as Centres of Excellence
across the country, State-wise, including Tamil Nadu;
(d) whether any partnership has been initiated with industry or foreign institutions for
curriculum enhancement, infrastructure modernization, or faculty training under this
initiative;
(e) the criteria adopted for selecting ITIs for upgradation and whether the Government
has a plan to consider more ITIs from Tamil Nadu for inclusion; and
(f) the measures taken by the Government to ensure that students from rural and
economically weaker backgrounds benefit from these upgraded institutions?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) & (b): Yes. The Cabinet has approved National Scheme for Upgradation of Industrial
Training Institutes (ITIs) and setting up National Centres of Excellence (NCOEs) for skilling,
at an estimated cost of ₹60,000 crore (Central Share: ₹30,000 crore, State Share: ₹20,000
crore, and Industry Share: ₹10,000 crore).
The key objectives of the scheme are:
i. To improve the quality of training delivery in ITIs;
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. These ITIs will be upgraded with 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.
Implementation of the scheme will be through Special Purpose Vehicles (SPVs) formed in
partnership with Anchor Industry Partners (AIPs) to ensure skill training relevance and
outcome-based delivery.
(c) Through the scheme, it has been proposed to upgrade a total of one-thousand
(1,000) ITIs across the country, including the state of Tamil Nadu. Further, it has also been
proposed to set-up five National Centres of Excellence for skilling within NSTIs, including
Chennai in Tamil Nadu.
(d) Yes. As part of the efforts to set up the National Centres of Excellence for Skilling,
discussions have been held with representatives of countries such as Australia, Germany,
Singapore, France, Republic of Korea, and Japan to explore possible cooperation in areas
like curriculum improvement, training of trainer, and infrastructure modernization.
(e) As per the Cabinet approval, selection of ITIs will be led by the 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. The selection of ITIs will depend on the
proposals received from State/UT Governments, subject to readiness and industry
collaboration.
(f) The scheme is to be implemented across the country, including in rural areas. It aims
to improve access to better training and employment opportunities for all sections of
society, including students from rural and economically weaker backgrounds. State/UTs
and industries are encouraged to take up ITIs in rural locations as well. Provision has been
made for introducing courses linked to local industry and livelihoods, and strengthening
student support services like counselling, remedial learning, and placement assistance.
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