**Executive Summary**
The Cabinet has approved the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU) scheme, aimed at enhancing the quality and relevance of vocational training. Key objectives include improving training delivery, modernizing infrastructure, introducing industry-aligned courses, strengthening industry linkages, and enhancing trainer capacity. Implementation will be overseen by a National Steering Committee, with State Steering Committees monitoring progress at the state level.
**Key Points / Main Content**
* **Scheme Objectives:**
* Improve the quality of training delivery in Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs).
* Modernize infrastructure and equipment to meet industry standards.
* Introduce industry-aligned long-term and short-term courses, particularly in new and emerging sectors.
* Strengthen industry linkages to support demand-driven skilling and improve employment outcomes.
* Enhance the capacity of NSTIs for training trainers.
* **Scheme Components:**
* **Component I:** Upgradation of 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) through a Hub and Spoke model, including smart classrooms, modern labs, digital content, and new industry-aligned courses.
* **Component II:** Capacity augmentation of five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, establishing sector-specific National Centres of Excellence for advanced trainer training with global partnerships.
* **Focus and Support:**
* PM-SETU emphasizes improving employability outcomes through industry-led governance.
* It indirectly supports self-employment and entrepreneurship by providing learners with industry-relevant skills, real work environment exposure, career guidance, placement support, and self-employment support.
* A mandatory 120 hours of Employability Skills training (for one-year courses) is included for all ITI trainees, covering entrepreneurship, financial literacy, and digital literacy.
* **Implementation Mechanism:**
* Industry-led Special Purpose Vehicles (SPVs) will manage upgradation and propose interventions in curriculum redesign, training delivery, infrastructure, industry exposure, and placement facilitation, aligned with local industry needs.
* A National Steering Committee (NSC) comprising Central Government, State Governments, and industry representatives will provide overall policy guidance.
* State Steering Committees (SSCs), chaired by the Chief Secretary of the respective State/UT, will monitor progress at the state level.
* The scheme includes provisions for periodic monitoring, performance reviews, and third-party impact assessments.
**Impact Analysis**
* **Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs)**
* **Impact:** These institutions will undergo upgradation of infrastructure, equipment, and training delivery to align with industry standards and emerging sectors. Their capacity for trainer training will also be enhanced.
* **Action Required:** Participate in the upgradation process as per the scheme's design, including the adoption of new courses and training methodologies.
* **Trainees (including Young, Women, and Rural Individuals)**
* **Impact:** Trainees will benefit from improved quality of vocational training, enhanced employability skills, greater exposure to industry needs, and improved access to placement and self-employment opportunities. Rural women will be specifically supported in exploring self-employment.
* **Action Required:** Engage with the updated training programs and mandatory employability skills modules to acquire relevant skills and explore career and entrepreneurial pathways.
* **Industry Partners**
* **Impact:** Industry partners will play a key role in the scheme's governance, curriculum design, and placement facilitation, ensuring training is demand-driven and relevant to their needs. They will be involved through SPVs and steering committees.
* **Action Required:** Actively participate in the National and State Steering Committees and Special Purpose Vehicles to provide policy guidance, shape curriculum, and facilitate industry exposure and placement.
* **Central and State Governments**
* **Impact:** Governments will oversee the implementation of the scheme, provide policy guidance, and monitor its progress to ensure effective achievement of objectives.
* **Action Required:** Provide representation on the National and State Steering Committees, ensure alignment of state-level activities with the scheme guidelines, and monitor progress at the state level.
Key Entities Referenced
Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU): A scheme approved by the Cabinet to enhance the quality and relevance of vocational training.
National Steering Committee (NSC): A committee overseeing the implementation of the scheme, comprising representatives of the Central Government, State Governments, and industry partners.
Ministry of Skill Development and Entrepreneurship (MSDE): The ministry responsible for the scheme, represented by the Minister of State (Independent Charge).
Industrial Training Institutes (ITIs): Institutions involved in vocational training that will be upgraded and utilized under the scheme.
National Skill Training Institutes (NSTIs): Institutions whose capacity will be augmented under the scheme for trainer training.
Ministry of Skill Development and Entrepreneurship
SPECIAL SUPPORT FOR YOUNG, WOMEN AND
RURAL ENTREPRENEURS
Posted On: 09 MAR 2026 4:01PM by PIB Delhi
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 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. However, a
mandatory 120 hours of Employability Skills training (for one-year courses) has been included in the
syllabus for all ITI trainees, which covers modules on entrepreneurship, financial literacy and digital
literacy, thereby supporting trainees, including rural women, in exploring self-employment opportunities.
The industry-led Special Purpose Vehicles (SPVs) under the Scheme would lead the upgradation and be
empowered to propose necessary interventions relating to curriculum redesign, training delivery models,
infrastructure upgradation, industry exposure, and placement or self-employment facilitation, in alignment
with local industry needs and the Scheme guidelines.
Implementation of the scheme will be overseen by a National Steering Committee (NSC) comprising
representatives of the Central Government, State Governments and industry partners, which will provide
overall policy guidance. In addition, State Steering Committees (SSCs) chaired by the Chief Secretary ofthe respective State/UT will monitor progress at the State level. The scheme also provides for periodic
monitoring, performance reviews, and third-party impact assessment to ensure effective implementation
and achievement of intended outcomes.
This information was given by the Minister of State (Independent Charge), Ministry of Skill Development
and Entrepreneurship (MSDE), Shri Jayant Chaudhary in a written reply in the Lok Sabha today.
***
SH
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