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GOVERNMENT OF INDIA
MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP
LOK SABHA
UNSTARRED QUESTION NO. 3835
ANSWERED ON 16.03.2026
UPGRADATION OF ITIs (PM-SETU) SCHEME
3835. SHRI B Y RAGHAVENDRA:
Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to
state:
(a) whether the Government has operationalised the Pradhan Mantri Skilling and
Employability through Upgraded ITIs (PM-SETU scheme) for modernization of Government
Industrial Training Institutes (ITIs) across the country and if so, the present status of
implementation of the scheme, including the number of States/UTs from which proposals have
been received and approved;
(b) whether the State Governments are required to identify ITI clusters and submit proposals
under the said scheme and if so, the details thereof;
(c) whether the State Government of Karnataka has submitted proposals for upgradation of
said ITIs under PM-SETU and if so, the details thereof including the number of ITIs/clusters
identified and their present stage of consideration; and
(d) whether any proposal or Strategic Investment Plan pertaining to Karnataka is pending for
approval before the National Steering Committee and if so, the details thereof?
ANSWER
THE MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF SKILL
DEVELOPMENT AND ENTREPRENEURSHIP
(SHRI JAYANT CHAUDHARY)
(a) to (d) The Pradhan Mantri Skilling and Employability Transformation through Upgraded
ITIs (PM SETU) scheme aims to enhance the overall quality and relevance of vocational
training in the country. The Scheme has a total outlay of Rs. 60,000 crore (Central Share –
Rs. 30,000 crore, State Share – Rs. 20,000 crore and Industry Share – Rs. 10,000 crore).
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.
The selection of ITIs under 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 in
collaboration with industry partners. Ministry of Skill Development and Entrepreneurship
(MSDE) has constituted National Steering Committee (NSC) chaired by Secretary, MSDE, anapex body to provide the overall vision for the scheme, facilitate broad policy direction, finalize
operational guidelines, monitor, and conduct course correction. 32 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 for guiding and overseeing the implementation of scheme. 15
States/UTs have floated their proposal for inviting the interest of industry. For selection of the
industry partner to form Special Purpose Vehicle (SPV), a Strategic Investment Plan (SIP) by
industry is required to be submitted in response to the Request for Proposal (RFP).
The Government of Karnataka has identified two clusters with hub ITI in districts of Bengaluru
and Kalburgi. Currently, there is no proposal or Strategic Investment Plan pending for approval
of National Steering Committee.
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