PM-SETU Steering Committee approves Rs 735.7 cr investment to transform ITIs
The 5th National Steering Committee meeting of PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) approved Strategic Investment Plans worth Rs 735.70 crore for ITI clusters in Rajasthan, Uttar Pradesh, and Telangana
This approval takes cumulative PM-SETU investment approved so far to Rs 2,171 crore across nine ITI clusters nationwide
The scheme follows a hub-and-spoke model, with each cluster's Hub ITI receiving advanced infrastructure and coordinating with linked Spoke ITIs to widen access to upgraded training
The initiative is positioned as a flagship skilling reform aimed at making Industrial Training Institutes more industry-aligned and employment-ready
PM-SETU Scheme: Design and Institutional Structure
PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) is a Central Sector Scheme approved by the Union Cabinet to modernise India's Industrial Training Institute (ITI) ecosystem through industry partnership, upgraded infrastructure, and outcome-linked funding, administered by the Ministry of Skill Development and Entrepreneurship (MSDE).
Key Details
- Launched 4 October 2025; outlay of approximately Rs 60,000 crore over the scheme period
- Structured as a hub-and-spoke model: about 200 "Hub" ITIs (upgraded to National Centres of Excellence-type facilities) supported by roughly 800 "Spoke" ITIs, aiming to eventually cover around 1,000 government ITIs
- Funding to each cluster is disbursed through a Strategic Investment Plan (SIP) approved by the National Steering Committee, based on industry partnership and skill-gap assessment for that region
- Implemented as a Centrally Sponsored Scheme with state and industry co-contribution, distinguishing it from a purely central-sector programme
The Rs 735.7 crore approval for Rajasthan, UP, and Telangana clusters is a routine operational step under this SIP-based funding architecture, and the cumulative figure of Rs 2,171 crore across nine clusters indicates the scheme's phased national rollout is underway roughly a year after launch.
Directorate General of Training, NCVT, and the NSQF Framework
Vocational training in ITIs operates under India's National Council for Vocational Training (NCVT) and the Directorate General of Training (DGT, under MSDE), which certify courses and conduct the All India Trade Test (AITT). Course design is increasingly aligned to the National Skills Qualifications Framework (NSQF), introduced in 2013, which organises competency levels from school to higher education for comparability across vocational and academic streams.
Key Details
- NCVT designs and certifies ITI trade courses; AITT graduates receive National Trade Certificates recognised for government employment
- NSQF (notified 2013) defines competency-based levels (typically Level 1 to Level 10) enabling credit transfer between vocational and mainstream education
- The Apprentices Act, 1961 (administered by DGT/MSDE) mandates industry engagement in practical training — the same "on-the-job" logic PM-SETU's industry-partnership model extends to ITI upgradation
- ITI pass-outs from NSQF-aligned Short Term Training courses are exempt from Basic Training requirements under the Apprentices Act
PM-SETU's stated goal of making ITIs "industry-led and future-ready" builds directly on this pre-existing NCVT-NSQF-DGT regulatory scaffolding, using targeted capital investment (like the newly approved Rs 735.7 crore) to modernise infrastructure within a framework the government already certifies and standardises.
NEP 2020 Vocational Education Target and the Skilling Push
The National Education Policy (NEP), 2020 set a target that at least 50% of learners in the school and higher education system should have exposure to vocational education by 2025, up from under 5% previously, as part of a broader push to mainstream skilling rather than treat it as a separate, lower-status track.
Key Details
- NEP 2020 recommends phased integration of vocational education into all secondary schools, in partnership with ITIs, polytechnics, and local industry
- Vocational curricula from Grades 9-12 are to be aligned with NSQF levels for standardisation and credit portability between vocational and general education
- PM-SETU's ITI upgradation is a downstream implementation lever for this target, since ITIs are among the principal vocational training providers NEP 2020 envisages schools partnering with
- Skill India Mission (2015) and predecessor schemes (e.g., the erstwhile Upgradation of 1396 Government ITIs scheme, World Bank-supported) preceded PM-SETU as earlier phases of ITI modernisation
The steering committee's cluster-wise SIP approvals are the operational mechanism translating NEP 2020's headline vocational-education target and the broader Skill India push into ground-level ITI infrastructure spending.
- Rs 735.70 crore approved for ITI clusters in Rajasthan, Uttar Pradesh, and Telangana (5th National Steering Committee meeting)
- Cumulative PM-SETU investment approved so far: Rs 2,171 crore across nine ITI clusters nationally
- PM-SETU launched: 4 October 2025; total scheme outlay: approximately Rs 60,000 crore
- Hub-and-spoke design: ~200 Hub ITIs + ~800 Spoke ITIs, covering ~1,000 government ITIs
- Nodal ministry: Ministry of Skill Development and Entrepreneurship (MSDE)
- NEP 2020 target: 50% of learners exposed to vocational education by 2025 (from under 5% baseline)
- NSQF (2013): competency framework enabling credit transfer across vocational and academic education