**Executive Summary**
The document provides answers to questions raised in Lok Sabha regarding the upgradation of Industrial Training Institutes (ITIs) and establishment of National Centres of Excellence (NCoEs) under the Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU) scheme. The scheme is proposed to be done through industry-led Special Purpose Vehicles (SPVs), and the selection of industry partners is based on Strategic Investment Plans (SIPs) submitted in response to the Request for Proposal (RFP). Twelve States/UTs have floated the Expression of Interest/RFP.
**Key Points / Main Content**
* **PM-SETU Scheme Overview:**
* Upgradation of ITIs and National Skill Training Institutes (NSTIs) will be done through industry-led Special Purpose Vehicles (SPVs).
* Selection of industry partners requires submission of a Strategic Investment Plan (SIP) in response to a Request for Proposal (RFP).
* **SIP and Fund Approval:**
* Release of funds for upgradation of ITIs or for setting up NCoE under PM-SETU is subject to the approval of SIP.
* Twelve States/UTs have floated the Expression of Interest/RFP for inviting industry interest.
* **ITI Selection Process:**
* The selection of ITIs under PM-SETU is led by respective State/UT Governments in consultation with industry.
* Selection ensures alignment with emerging skill needs and local industrial potential.
* **Hub-and-Spoke Model:**
* Hub-and-Spoke ITI clusters would be finalized for financial assistance based on the response of industry partners.
* **Andhra Pradesh Pilot Project:**
* Andhra Pradesh has identified five Government ITIs under PM-SETU in pilot phase.
* It comprises one cluster with one Hub ITI in Visakhapatnam and four Spoke ITIs.
* The Spoke ITIs are proposed to be located in Visakhapatnam, Vizianagaram, and Alluri Sitarama Raju districts.
* **Support for States/UTs:**
* The scheme’s benefits will be achieved through a State-led selection process, industry participation, and a structured implementation framework.
* The Government supports States/UTs through consultations, handholding workshops, a model RFP document, detailed templates, and regional capacity-building workshops.
* This is intended to enable timely and quality preparation of proposals/SIPs.
**Impact Analysis**
**States/UTs**
* **Impact:** Responsible for the selection of ITIs under PM-SETU in consultation with industry. Responsible for preparing RFPs/SIPs.
* **Action Required:** Lead the selection process of ITIs, prepare SIPs, seek clarifications and handholding support from the Government, and attend capacity-building workshops.
**Industry Partners**
* **Impact:** Required to submit Strategic Investment Plans (SIPs) in response to the Request for Proposal (RFP) to participate in the PM-SETU scheme.
* **Action Required:** Respond to RFPs by submitting SIPs and collaborate with State/UT Governments for ITI selection.
**Industrial Training Institutes (ITIs)**
* **Impact:** ITIs stand to be upgraded under the PM-SETU scheme and may be selected as Hub or Spoke ITIs in a cluster.
* **Action Required:** Prepare to collaborate with State/UT Governments and industry partners to benefit from the PM-SETU scheme.
Key Entities Referenced
Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM SETU): A scheme for upgrading Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs) through industry-led Special Purpose Vehicles (SPVs).
Ministry of Skill Development and Entrepreneurship: The government ministry responsible for skill development initiatives.
Industrial Training Institutes (ITIs): Vocational training centers that are the subject of the PM SETU scheme for upgradation.
Strategic Investment Plan (SIP): A plan submitted by industry partners for the upgradation of ITIs under the PM SETU scheme.
Andhra Pradesh: One of the States that has Government ITIs under PM-SETU in pilot phase.
GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. 1386
ANSWERED ON 09.02.2026
UPGRADATION OF ITIs AND ESTABLISHMENT OF NCoEs
1386. SHRI APPALANAIDU KALISETTI:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to
state:
(a) the details of the number of Strategic Investment Plans (SIPs) submitted by States/UTs
and Anchor Industry Partners for the upgradation of Industrial Training Institutes (ITIs) and
establishment of National Centres of Excellence (NCoEs);
(b) the details of the number of SIPs approved, pending for approval or returned for revision
along with the reasons for such pendency or revision;
(c) the details of the timelines prescribed for appraisal and approval of SIPs and whether
delays in approval have impacted the fund disbursement and project implementation;
(d) the details of the total funds allocated, released and utilised under Component-I and
Component-II, States/UT-wise;
(e) the details of the number of ITIs selected as Hubs and Spokes, States/UT-wise including
district-wise details for Andhra Pradesh; and
(f) whether any States/UTs, including Andhra Pradesh, have reported difficulties in preparing
SIPs and if so, the steps taken by the Government to provide technical or institutional support?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) to (d) The Upgradation of Industrial Training Institutes (ITIs) and National Skill Training
Institutes (NSTIs) under the Pradhan Mantri Skilling and Employability through Upgraded ITIs
(PM SETU) scheme is proposed to be done through industry-led Special Purpose Vehicles (
SPVs). 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. Release of funds for
upgradation of ITIs or for setting up NCoE under PM-SETU is subject to the approval of SIP.
(e) The selection of ITIs under PM-SETU is led by the respective State/UT Governments in
consultation with industry, ensuring alignment with emerging skill needs and local industrial
potential. 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.
Andhra Pradesh has identified five Government ITIs under PM-SETU in pilot phase, comprising
one cluster with one Hub ITI and four Spoke ITIs. The Hub ITI is proposed to be located in
Visakhapatnam, while the Spoke ITIs are proposed to be located one each in Visakhapatnam
and Vizianagaram districts, and two in Alluri Sitarama Raju district.(f) The benefits of the scheme are proposed to be achieved through the State-led selection
process, industry participation, and structured implementation framework. Consultations have
been held with industry associations and industry players, and multiple handholding workshops
have also been conducted with States/UTs. States/UTs have sought clarifications and
handholding support in relation to preparation of RFPs/SIPs and related templates. The
Government has taken steps to support States/UTs and industry through issuance of a model
RFP document and detailed templates and regional capacity-building workshops to enable
timely and quality preparation of proposals/SIPs.
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