**Executive Summary**
This document is the official response to Unstarred Question No. 148 in Lok Sabha, answered on December 1, 2025, regarding Industrial Training Institutes (ITIs) schemes. It outlines the objectives and components of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU) scheme. The scheme aims to enhance the quality and relevance of vocational training with a total estimated outlay of ₹60,000 crore over a five-year period.
**Key Points / Main Content**
* **PM SETU Scheme Objectives:**
* Improve the quality of training delivery in ITIs and NSTIs.
* Modernize infrastructure and equipment to industry standards.
* Introduce industry-aligned long-term and short-term courses, especially in new 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.
* **Scheme Components:**
* Component I: Upgrade 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) in a Hub and Spoke model with smart classrooms, modern labs, digital content, and new courses.
* Component II: Capacity Augmentation of five NSTIs in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including setting up sector-specific National Centers of Excellence for skilling, with a focus on advanced training of trainers with global partnership.
* **Financial Outlay:**
* Total estimated outlay is ₹60,000 crore, contributed by the Central Government (₹30,000 crore), State Governments (₹20,000 crore), and Industry Partners (₹10,000 crore) over five years.
* Budgetary allocations for each State/UT are based on proposals reflecting interest, readiness, and industry collaboration potential.
* Fund disbursement is linked to the approval of Strategic Investment Plans (SIPs).
* **National Centers of Excellence:**
* Establish five National Centres of Excellence for Skilling within NSTIs in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
* Focus on advanced training of trainers, industry-led skilling programs, and exposure to global practices.
* Conduct capacity building programs for ITI instructors and staff; States/UTs may depute faculty.
* These centres are available to ITIs across the country, and may also cater to institutions in the States/UTs.
**Impact Analysis**
**States/UTs (including Tripura):**
* **Impact:** Budgetary allocations depend on proposals submitted reflecting their readiness and industry collaboration potential. They may also depute faculty to National Centres of Excellence.
* **Action Required:** Submit Strategic Investment Plans (SIPs) for approval to receive funds, participate in capacity building programs by deputing faculty to National Centers of Excellence, and comply with scheme guidelines and State/UT participation rules.
**Industrial Training Institutes (ITIs):**
* **Impact:** Upgrade of infrastructure and training programs, access to new courses and digital content, and potential for faculty to participate in capacity building programs.
* **Action Required:** Implement upgrades to infrastructure and training programs, align curriculum with industry needs, and potentially participate in capacity building programs.
**National Skill Training Institutes (NSTIs):**
* **Impact:** Capacity augmentation, including setting up sector-specific National Centres of Excellence.
* **Action Required:** Participate in capacity building programs, contribute to advanced training of trainers, and engage in industry-led skilling programs.
Key Entities Referenced
Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU): A scheme to enhance the overall quality and relevance of vocational training in the country by upgrading Industrial Training Institutes (ITIs).
Industrial Training Institutes (ITIs): The primary institutions targeted for upgrade and development under the discussed schemes.
National Skill Training Institutes (NSTIs): Institutes being augmented for capacity and quality, especially for training trainers.
Ministry of Skill Development and Entrepreneurship: The ministry responsible for administering the mentioned skill development schemes.
Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana: Locations of the five NSTIs where capacity augmentation and National Centres of Excellence will be established.
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. 148
ANSWERED ON 01.12.2025
INDUSTRIAL TRAINING INSTITUTES SCHEMES
†148 SHRI DARSHAN SINGH CHOUDHARY :
SHRI BIPLAB KUMAR DEB :
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to
state:
(a) the main objectives of newly sanctioned Industrial Training Institutes (ITIs)
upgradation scheme;
(b) the total budget allocation made for the national scheme of upgradation of ITIs
including in the State of Tripura; and
(c) the manner in which the existing ITIs along with National Centres of Excellence
are to be integrated for skill development?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) Sir, 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 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. 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.
(b) The total estimated outlay of the scheme is ₹60,000 crore, with contributions
from the Central Government (₹30,000 crore), State Governments (₹20,000 crore), and
Industry Partners (₹10,000 crore) over a five-year period.
The Budgetary allocations for each State/UT (including Tripura) are based on the
proposals submitted by the States/UTs, reflecting their interest, readiness, and potential
for industry collaboration. The disbursement of funds will be linked to approval of
Strategic Investment Plans (SIPs) submitted by the AIP for each cluster, detailing
infrastructure, equipment, course alignment and training outcomes.
(c) The scheme provides for the establishment of five National Centres of
Excellence for Skilling within National Skill Training Institutes located at Bhubaneswar,
Chennai, Hyderabad, Kanpur, and Ludhiana with focus on advanced training of trainers,
industry-led skilling programmes, and exposure to global practices. They will also
conduct capacity building programmes for instructors and staff of ITIs, for which
States/UTs may depute faculty from time to time. These Centres will be available to ITIs
across the country, and may also cater to institutions in the States/UTs, based on
proposals received and in accordance with scheme guidelines and State/UT
participation.
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