**Executive Summary**
The document summarizes the objectives and components of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, approved by the Cabinet to enhance vocational training quality and relevance in India. The scheme focuses on upgrading Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs). States/UTs are required to submit proposals for ITI upgrades in collaboration with industry partners. The response addresses questions raised in Lok Sabha Unstarred Question No. †236, answered on February 2, 2026.
**Key Points / Main Content**
* **Scheme Overview:**
* PM-SETU aims to strengthen the ITI & NSTI ecosystem through industry-led governance, modern infrastructure, and improved training delivery.
* The scheme primarily focuses on vocational education and training upgradation, not direct startup support.
* **Scheme Objectives:**
* Improve training quality in ITIs and NSTIs.
* Modernize infrastructure and equipment to industry standards.
* Introduce industry-aligned courses (long-term and short-term), especially in new sectors.
* Strengthen industry linkages for demand-driven skilling and better employment.
* Enhance NSTI capacity for trainer training.
* **Scheme Components:**
* **Component I:** Upgrade 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) with smart classrooms, modern labs, digital content, and industry-aligned courses.
* **Component II:** Augment capacity of five NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana) by establishing sector-specific National Centres of Excellence and advanced trainer training with global partnership.
* **Implementation and Governance:**
* ITI selection is led by State/UT governments in consultation with industry, aligning with skill needs and industrial potential.
* States/UTs must submit proposals for upgrades with industry partners.
* MSDE's National Steering Committee (NSC), chaired by the Secretary, MSDE, provides overall vision, policy direction, monitors, and conducts course corrections.
* 25 States/UTs have State Steering Committees (SSC), led by the Chief Secretary, to guide implementation at the State/UT level.
* 10 States/UTs have floated proposals for industry interest.
* **Pilot Phase Status:**
* Maharashtra: Three clusters (Pune, Nagpur, Chhatrapati Sambhajinagar) identified for the pilot phase; no proposal received from Palghar.
* Bihar: Two clusters (Patna, Darbhanga) identified for the pilot phase; a Request for Proposal (RFP) is to be issued by the State.
**Impact Analysis**
**State/UT Governments**
* **Impact:** Responsible for leading the selection of ITIs for upgradation under PM-SETU, aligning with emerging skill needs and local industrial potential.
* **Action Required:** Submit proposals for ITI upgradation in collaboration with industry partners.
**Industrial Training Institutes (ITIs)**
* **Impact:** Selected ITIs will undergo significant upgrades to infrastructure, equipment, and curriculum.
* **Action Required:** Partner with State/UT governments and industry stakeholders to prepare for and implement the upgrade process.
**National Skill Training Institutes (NSTIs)**
* **Impact:** Five NSTIs will undergo capacity augmentation, establishing sector-specific National Centres of Excellence and enhancing trainer training capabilities.
* **Action Required:** Participate in the capacity augmentation process and collaborate to enhance the quality of trainer training programs.
**Secretary, MSDE (National Steering Committee Chair)**
* **Impact:** As the chair of the NSC, the Secretary, MSDE plays a pivotal role in providing overall vision, policy direction, monitoring, and course correction for the PM-SETU scheme.
* **Action Required:** Spearhead the NSC's efforts to guide and oversee the effective implementation of the PM-SETU scheme, ensuring alignment with national skill development objectives.
**Industry Partners**
* **Impact:** They are expected to collaborate with State/UT governments in the selection of ITIs and in the design and delivery of industry-aligned training programs.
* **Action Required:** Actively engage with State/UT governments and ITIs to provide guidance and support in the upgradation process, ensuring that training programs meet industry needs and standards.
Key Entities Referenced
PM-SETU Scheme: Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs scheme to enhance vocational training quality and relevance, focusing on improving employability outcomes through industry-led governance, and indirectly supports self-employment and entrepreneurship.
Industrial Training Institutes (ITIs): Government-run vocational training centers that will be upgraded under the PM-SETU scheme, with 1000 Government ITIs being upgraded in a Hub and Spoke model.
National Skill Training Institutes (NSTIs): Training institutes for trainers that will be capacity augmented under the PM-SETU scheme, located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
Ministry of Skill Development and Entrepreneurship: The central ministry responsible for implementing the PM-SETU scheme.
National Steering Committee (NSC): Committee constituted by MSDE, chaired by Secretary, MSDE, to provide overall vision, policy direction, and monitoring for the PM-SETU scheme.
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. †236
ANSWERED ON 02.02.2026
OBJECTIVES OF PM-SETU SCHEME
†236 SHRI PRAVEEN PATEL:
SHRI LUMBARAM CHOUDHARY:
SHRI BHARTRUHARIMAHTAB:
DR. HEMANT VISHNU SAVARA:
SHRI DILIPSAIKIA:
SMT. KAMLESH JANGDE:
SHRI PRADEEP KUMAR SINGH:
SHRI BHOJRAJ NAG:
SHRI VIJAY BAGHEL:
SHRI GOPAL JEE THAKUR:
SHRI DINESHBHAI MAKWANA:
SHRI JANARDAN MISHRA:
SHRI SURESH KUMAR KASHYAP:
SHRI ANIL FIROJIYA:
SHRI AVIMANYUSETHI:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be
pleased to state:
(a) the objectives and key components of the Prime Minister Skilling and
EmployabilityTransformation through Upgraded ITIs (PM-SETU) scheme to
strengthen the startup andentrepreneurship ecosystem, especially for early-stage
enterprises and first-time entrepreneurs;
(b) the details of progress made so far in the implementation of PM-SETU in
respect ofinstitutional systems, stakeholder participation (onboarding) and
coordination withimplementingagencies;
(c) the manner in which the scheme seeks to integrate skilling, mentorship, credit
facilitationand market access for startups and aspiring entrepreneurs and the
initiatives taken by theGovernment for skill development of startups and
entrepreneurs in Madhya Pradesh andChhattisgarh;
(d) whether the Government has any plan to promote the PM-SETU scheme for
startups andentrepreneurship in tribal district like Palghar in Maharashtra and if so,
the details thereof; and
(e) the current status of the implementation of said schemes and the details of
the progressreported thereunder particularly in Darbhanga district of Bihar?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF
SKILL DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a)to (e) 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 (including early-stage enterprises and first-time entrepreneurs) 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.
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
policydirection, 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 forguiding andoverseeing the implementation of scheme. 10 States/UTs have floated
their proposal for inviting the interest of industry.
PM-SETU is primarily a vocational education and training upgradation scheme
aimed at strengthening the ITI & NSTI ecosystem through industry-led governance,
modern infrastructure and improved training delivery and outcomes. The scheme
does not provide any support for startups/early-stage enterprises as a dedicated
startup programme.
As per the details received from Government of Maharashtra, three (3) clusters in
the districts of Pune, Nagpur and Chhatrapati Sambhajinagar have been identified
in Maharashtra in the pilot phase. No proposal for ITI/cluster from Palghardistrict
has been received in the pilot phase.
As per the details received from Government of Bihar, two (2) clusters in the districts
of Patna and Darbhanga have been identified for pilot phase. Request For Proposal
(RFP) is to be issued by State to invite the interest of industry.
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