**Executive Summary**
The document is a response to an unstarred question in Lok Sabha concerning the PM-SETU scheme aimed at modernizing Government Industrial Training Institutes (ITIs) in Tamil Nadu. The response outlines the scheme's objectives, the selection process, and the measures being taken to improve employability and entrepreneurship outcomes. It also mentions the Strategic Advisory and Reforms Taskforce for Holistic ITI Transformation (SARTHI).
**Key Points / Main Content**
* **PM-SETU Scheme Overview:**
* The PM-SETU scheme aims to enhance vocational training quality and relevance through upgraded labs, machines, and industry-aligned curriculum.
* Key objectives include improving training quality, modernizing infrastructure, introducing industry-aligned courses, strengthening industry linkage, and enhancing NSTI capacity for trainer training.
* **ITI Selection Process in Tamil Nadu:**
* State/UT governments, in consultation with industry, lead the ITI selection process to align with skill needs and industrial potential.
* Tamil Nadu has identified 34 government ITIs (6 Hub and 28 Spoke) for the PM-SETU scheme's pilot phase.
* Hub-and-Spoke ITI clusters will be finalized based on industry partners' response to proposed clusters.
* **Employability and Entrepreneurship Focus:**
* PM-SETU focuses on improving employability via industry-led governance, industry-relevant skills, real-work exposure, and career/placement support.
* Industry partner selection requires submitting a Strategic Investment Plan (SIP).
* **Financial Aspects:**
* No SIP proposals have been approved yet; therefore, no funds have been released under PM-SETU.
* ₹49.50 lakh was released during FY 2023–24 for ITI Coimbatore's upgradation under the Model ITIs scheme, from a total financial assistance of ₹3.99 crore.
* **Measures for Improved Outcomes:**
* The government ensures improved outcomes through industry-led Special Purpose Vehicles (SPVs), which will lead the ITI upgradation.
* These SPVs are empowered to redesign curriculum, improve training delivery, upgrade infrastructure, and enhance placement/self-employment facilitation.
* The Strategic Advisory and Reforms Taskforce for Holistic ITI Transformation (SARTHI) provides advisory inputs on various aspects of ITI transformation.
**Impact Analysis**
* **State/UT Governments**
**Impact:** Responsible for the selection of ITIs under the PM-SETU Scheme in consultation with industry.
**Action Required:** Required to submit proposals for the upgradation of identified ITI clusters in collaboration with industry partners.
* **Industry Partners**
**Impact:** Expected to collaborate in the upgradation of ITIs, contributing to industry-aligned training.
**Action Required:** Required to submit a Strategic Investment Plan (SIP) to be selected as an industry partner.
* **ITI Students**
**Impact:** Expected to benefit from improved training quality, industry-relevant skills, and better employment opportunities.
**Action Required:** Engage in the updated programs and leverage the industry linkages provided.
* **Ministry of Skill Development and Entrepreneurship**
**Impact:** Responsible for the overall implementation and monitoring of the PM-SETU scheme.
**Action Required:** Continue to provide guidance and support to States/UTs and industry partners in the implementation of the scheme.
Key Entities Referenced
PM-SETU: Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM SETU) scheme to enhance the overall quality and relevance of vocational training with upgraded labs, machines, and industry-aligned curriculum in the country.
Ministry of Skill Development and Entrepreneurship: The central government ministry responsible for the PM-SETU scheme and related initiatives.
Industrial Training Institutes (ITIs): The institutions targeted for modernization and upgrade under the PM-SETU scheme.
Strategic Advisory and Reforms Taskforce for Holistic ITI Transformation (SARTHI): A taskforce constituted under the chairmanship of the Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship, to provide advisory inputs on curriculum development and standardisation, trade testing and certification reforms, accreditation and regulatory norms for ITIs, strengthening of industry-institute linkages, and facilitation of inter-ministerial and institutional coordination under the Craftsmen Training Scheme (CTS).
Tamil Nadu: The state specifically mentioned as participating in the PM-SETU scheme.
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. 1411
ANSWERED ON 09.02.2026
PM-SETU TO MODERNISE GOVERNMENT ITIs IN TAMIL NADU
1411. SHRI SELVAM G:
SHRI CN ANNADURAI:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to
state:
(a) whether the Government has launched PM-SETU to modernize 1,000 Government
Industrial Training Institutes (ITIs) with upgraded labs, machines, and industry-aligned curriculum.
(b) the details of the number of Government ITIs in Tamil Nadu selected under PM-SETU for
upgradation;
(c) whether students from the State are receiving improved placement opportunities and
industry linkages as a result of the modernisation efforts, if so, the details thereof;
(d) the details of the funds allocated, released, and utilised for upgrading ITIs in Tamil Nadu
during the last three years under the said and other related schemes; and
(e) the steps taken/being taken by the Government to ensure that modernised training
translates into higher employability and entrepreneurship outcomes for youth in semi-urban and
rural districts of the State?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) The Cabinet has approved the Pradhan Mantri Skilling and Employability through
Upgraded ITIs (PM SETU) scheme to enhance the overall quality and relevance of vocational
training with upgraded labs, machines, and industry-aligned curriculum 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.
(b) The selection of ITIs under the PM-SETU Scheme is 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 of
identified ITI cluster in collaboration with industry partners. The Tamil Nadu state has identified
34 government ITIs (6 Hub ITIs and 28 Spoke ITIs) under the PM-SETU Scheme in pilot phase.However, the Hub-and-Spoke ITI clusters would be finalized for financial assistance on the basis
of the response of industry partners for the proposed clusters.
(c) & (d) PM-SETU focuses on improving employability outcomes through industry-led
governance, and propose to enable 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. For selection of the
industry partner, a Strategic Investment Plan (SIP) is required to be submitted in response to the
Request for Proposal (RFP). So, far twelve (12) States/UTs have floated the Expression of
Interest/RFP for inviting industry interest. So far, no SIP proposal have been submitted for the
approval of National Steering Committee (NSC).
As no SIP has been approved so far, no funds have been released for ITI upgradation under the
PM-SETU Scheme. However, out of the total Central financial assistance of ₹3.99 crore for ITI
Coimbatore under the upgradation of existing Government ITIs into Model ITIs scheme, an
amount of ₹49.50 lakh was released during FY 2023–24.
(e) The Government is ensuring that modernised training translates into improved employability
and entrepreneurship outcomes, including in semi-urban and rural districts, through the industry-
led Special Purpose Vehicles (SPVs) under the Scheme. These SPVs are proposed to lead the
upgradation and would be empowered to undertake interventions such as curriculum redesign,
improved training delivery models, infrastructure upgradation, industry exposure, and
strengthened placement or self-employment facilitation, in alignment with local industry needs
and the Scheme guidelines.
In addition, the Strategic Advisory and Reforms Taskforce for Holistic ITI Transformation
(SARTHI) has been constituted under the chairmanship of the Minister of State (Independent
Charge), Ministry of Skill Development and Entrepreneurship, to provide advisory inputs on
curriculum development and standardisation, trade testing and certification reforms, accreditation
and regulatory norms for ITIs, strengthening of industry–institute linkages, and facilitation of inter-
ministerial and institutional coordination under the Craftsmen Training Scheme (CTS).
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