Executive Summary:
The Ministry of Skill Development and Entrepreneurship introduced a National Scheme for Industrial Training Institute (ITI) upgradation and the establishment of National Centres of Excellence (NCoEs) to enhance vocational training quality and relevance. The scheme, with a total outlay of ₹60,000 crore, aims to modernize infrastructure, improve training, strengthen industry linkages, and enhance the capacity of trainers. State/UT governments must submit proposals for ITI selection and funding.
Key Points / Main Content:
Objectives:
* Improve training quality in ITIs and NSTIs.
* Modernize infrastructure and equipment to meet industry standards.
* Introduce industry-aligned courses, both long-term and short-term, particularly in emerging sectors.
* Strengthen industry connections for demand-driven skilling and better job placement.
* Enhance the capacity of NSTIs for training trainers.
Components:
* Component I: Upgrading 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) with smart classrooms, modern labs, digital content, and new courses.
* Component II: Enhancing the capacity of five NSTIs in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including establishing sector-specific NCoEs for advanced trainer training with global partnerships.
Implementation:
* Implementation via Special Purpose Vehicles (SPVs) in partnership with Anchor Industry Partners (AIPs).
* State/UT governments will lead ITI selection in consultation with industry.
* Scheme implementation will be pan-India, based on proposals from States/UTs.
Budget and Funding:
* Total estimated outlay: ₹60,000 crore (₹30,000 crore from Central Government, ₹20,000 crore from State Governments, ₹10,000 crore from Industry Partners) over five years.
* State/UT budgetary allocations depend on proposals submitted.
* Fund disbursement is linked to the approval of Strategic Investment Plans (SIPs) submitted by AIPs.
Centres of Excellence:
* Five NCoEs will be established within NSTIs in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
* These centres will focus on advanced training for trainers, industry-led programs, and exposure to global practices.
* Capacity building programs will be conducted for ITI instructors and staff.
* Centres are available to ITIs nationwide, based on proposals and State/UT participation.
Impact Analysis:
State/UT Governments:
* Impact: Responsible for submitting proposals for ITI selection, participating in the scheme, and collaborating with industry partners.
* Action Required: Submit proposals based on interest, readiness, and industry collaboration, including Strategic Investment Plans.
Industrial Training Institutes (ITIs):
* Impact: Potential for infrastructure upgrades, curriculum improvements, and enhanced industry linkages, leading to better training quality and placement rates.
* Action Required: Collaborate with State/UT governments and industry partners to develop proposals for ITI upgrades.
Anchor Industry Partners (AIPs):
* Impact: Play a crucial role in implementing the scheme through SPVs, ensuring skill training relevance and outcome-based delivery.
* Action Required: Partner with State/UT governments and ITIs to develop and implement Strategic Investment Plans.
National Skill Training Institutes (NSTIs):
* Impact: Selected NSTIs will be upgraded with National Centres of Excellence, expanding their capacity for training trainers and offering advanced programs.
* Action Required: Prepare for upgrades and implement advanced training programs.
Trainees/Students:
* Impact: Access to modernized facilities, industry-relevant training, and improved employment opportunities.
* Action Required: Engage in the updated training programs and leverage the improved resources for skill development.
Key Entities Referenced
National Scheme for Upgradation of Industrial Training Institutes: A scheme approved by the Cabinet for upgrading Industrial Training Institutes (ITIs) and setting up National Centres of Excellence (NCoEs) for skilling.
Industrial Training Institutes (ITIs): Institutes intended to be upgraded under the National Scheme, focusing on improving training delivery, infrastructure, and industry linkage.
National Skill Training Institutes (NSTIs): Five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana where National Centres of Excellence for skilling will be set up.
Bhubaneswar, Odisha: One of the locations for the National Skill Training Institutes (NSTIs).
Chennai, Tamil Nadu: One of the locations for the National Skill Training Institutes (NSTIs).
Hyderabad, Telangana: One of the locations for the National Skill Training Institutes (NSTIs).
Kanpur, Uttar Pradesh: One of the locations for the National Skill Training Institutes (NSTIs).
Ludhiana, Punjab: One of the locations for the National Skill Training Institutes (NSTIs).
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
STARRED QUESTION NO. *205
ANSWERED ON 04.08.2025
ITI UPGRADATION SCHEME
*205 Ms. KANGNA RANAUT:
SHRI GODAM NAGESH:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to
state: -
(a) the key objectives and components of the newly approved National Scheme for Industrial
Training Institute (ITI) upgradation along with the proposed areas of improvement in infrastructure,
curriculum and industry linkage across the country, State/UT-wise including Jammu;
(b) the total budgetary allocation for the said Scheme, State/UT-wise, particularly for Jammu
along with the mechanism for fund disbursal to the States and ITIs during the current financial
year;
(c) the list of approved ITIs and their budget allocation, State/UT-wise;
(d) the details of ITIs identified for upgradation in North East Delhi and Sidhi Lok Sabha
Constituency of Madhya Pradesh and Dakshina Kannada district of Karnataka; and
(e) the steps taken by the Government to integrate the Centres of Excellence for skill
development with the existing ITIs in the country including Chhattisgarh and Rajasthan and
especially in Jalore and Sirohi?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) to (e) A Statement is laid on the Table of the House.STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF LOK SABHA
STARRED QUESTION NO. *205 ANSWERED ON 04.08.2025 ASKED BY Ms. KANGNA
RANAUT & SHRI GODAM NAGESH REGARDING “ITI UPGRADATION SCHEME”.
(a) The Cabinet has approved a National Scheme for Upgradation of Industrial Training
Institutes (ITIs) and setting up of five National Centres of Excellence (NCoEs) for skilling 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.
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. Selection of ITIs will be led by State/UT Governments in consultation with
industry. The scheme will be implemented pan-India, including in Union Territories such as
Jammu & Kashmir, based on proposals received from States/UTs.
(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.
States/UTs are required to submit proposals based on interest and readiness, including industry
collaboration. State/UT-wise budgetary allocations will be made accordingly. 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) & (d) The selection of ITIs and corresponding State/UT-wise budget allocations will depend
on the proposals received from State/UT Governments, subject to readiness and industry
collaboration. Specific clusters of ITIs, including in North East Delhi, Sidhi Lok Sabha
Constituency (Madhya Pradesh), and Dakshina Kannada (Karnataka), will be considered based
on proposals received from State/UT Governments in consultation with industry partners.
(e) Under the scheme, five National Centres of Excellence for Skilling are to be setup within
National Skill Training Institutes located at Bhubaneswar, Chennai, Hyderabad, Kanpur, and
Ludhiana. These Centres will 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 States such as Chhattisgarh and Rajasthan, including districts like Jalore and Sirohi,
based on proposals received and in accordance with scheme guidelines and State/UT
participation.
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