**Executive Summary**
The Ministry of Skill Development and Entrepreneurship announced the proposed upgrading of Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs) under the Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM SETU) scheme. This initiative aims to enhance ITIs through industry-led Special Purpose Vehicles (SPVs), with selection of industry partners requiring a Strategic Investment Plan (SIP) in response to a Request for Proposal (RFP). Twelve States/UTs have already issued Expressions of Interest/RFPs, and fund release is contingent upon SIP approval.
**Key Points / Main Content**
* **PM SETU Scheme Overview:**
* Aims to upgrade ITIs and NSTIs 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).
* Fund release for upgrading ITIs or setting up NCoEs under PM-SETU is subject to SIP approval.
* **Selection and Collaboration:**
* ITIs are selected under PM-SETU by State/UT Governments in consultation with industry.
* Ensures alignment with emerging skill needs and local industrial potential.
* Hub-and-Spoke ITI clusters will be finalized for financial assistance based on industry partner response.
* **Andhra Pradesh Pilot Phase:**
* Andhra Pradesh has identified five Government ITIs under PM-SETU in a pilot phase, comprising one Hub ITI and four Spoke ITIs.
* The Hub ITI is proposed to be located in Visakhapatnam.
* The Spoke ITIs are proposed to be located one each in Visakhapatnam and Vizianagaram districts, and two in Alluri Sitarama Raju district.
* **Implementation and Support:**
* The scheme will be implemented through a State-led selection process, industry participation, and a structured framework.
* The Government supports States/UTs and industry via a model RFP, templates, and regional capacity-building workshops.
**Impact Analysis**
**Stakeholder: States/UTs**
* **Impact:** Responsible for selecting ITIs, consulting with industry, preparing RFPs/SIPs, and implementing the PM SETU scheme.
* **Action Required:** Float the Expression of Interest/RFP for inviting industry interest.
**Stakeholder: Industry Partners**
* **Impact:** Potential to partner with the government to upgrade ITIs and NSTIs through SPVs.
* **Action Required:** Submit a Strategic Investment Plan (SIP) in response to the Request for Proposal (RFP).
**Stakeholder: Students**
* **Impact:** Opportunity for better skills training through upgraded facilities.
* **Action Required:** Opportunity to acquire skills aligned with industry requirements.
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 (MSDE): The ministry responsible for the PM SETU scheme.
Andhra Pradesh: The state where PM-SETU is being piloted.
Ministry of Skill Development and Entrepreneurship
UPGRADATION OF ITIs AND ESTABLISHMENT
OF NCoEs
Posted On: 09 FEB 2026 5:35PM by PIB Delhi
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.
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.
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.
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.
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