Lok Sabha Question No. 205 (STARRED), answered on 2025-08-04
Subject: ITI Upgradation Scheme
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Godam Nagesh, Ms Kangna Ranaut

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA

## STARRED QUESTION NO. *205

ANSWERED ON 04.08.2025

## ITI UPGRADATION SCHEME

*205 Ms. KANGNA RANAUT: SHRI GODAM NAGESH:

Will the Minister of SKILL DEVELOPMENT AND ENTREPRENEURSHIP be pleased to state: -

- (a) the key objectives and components of the newly approved National Scheme for Industrial Training Institute (ITI) upgradation along with the proposed areas of improvement in infrastructure, curriculum and industry linkage across the country, State/UT-wise including Jammu;
- (b) the total budgetary allocation for the said Scheme, State/UT-wise, particularly for Jammu along with the mechanism for fund disbursal to the States and ITIs during the current financial year;
- (c) the list of approved ITIs and their budget allocation, State/UT-wise;
- (d) the  details  of  ITIs  identified  for  upgradation  in  North  East  Delhi  and  Sidhi  Lok  Sabha Constituency of Madhya Pradesh and Dakshina Kannada district of Karnataka; and
- (e) the  steps  taken  by  the  Government  to  integrate  the  Centres  of  Excellence  for  skill development  with  the  existing  ITIs  in  the  country  including  Chhattisgarh  and  Rajasthan  and especially in Jalore and Sirohi?

## ANSWER

THE  MINISTER  OF  STATE  (INDEPENDENT  CHARGE)  IN  THE  MINISTRY  OF  SKILL DEVELOPMENT AND ENTREPRENEURSHIP

(SHRI JAYANT CHAUDHARY)

- (a) to (e) A Statement is laid on the Table of the House.

## STATEMENT  REFERRED  TO  IN  REPLY  TO  PARTS  (a)  TO  (e)  OF  LOK  SABHA STARRED QUESTION  NO.  *205  ANSWERED  ON  04.08.2025  ASKED  BY  Ms.  KANGNA RANAUT & SHRI GODAM NAGESH REGARDING ' ITI UPGRADATION SCHEME ' .

(a)  The  Cabinet  has  approved  a  National  Scheme  for  Upgradation  of  Industrial  Training Institutes  (ITIs) and setting up of five National Centres of Excellence (NCoEs) for skilling 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 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. These ITIs will be upgraded with 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.

Implementation  of  the  scheme  will  be  through  Special  Purpose  Vehicles  (SPVs)  formed  in partnership with Anchor Industry Partners (AIPs) to ensure skill training relevance and outcomebased  delivery.  Selection  of  ITIs  will  be  led  by  State/UT  Governments  in  consultation  with industry.  The  scheme  will  be  implemented  pan-India,  including  in  Union  Territories  such  as Jammu & Kashmir, based on proposals received from States/UTs.

(b) The total estimated outlay of  the  scheme is  ₹60,000 crore, with contributions from the Central Government (₹30,000 crore), State Governments (₹20,000 crore), and Industry Partners (₹10,000 crore) over a five-year period.

States/UTs are required to submit proposals based on interest and readiness, including industry collaboration.  State/UT-wise budgetary allocations will be made accordingly.  Disbursement of funds will be linked to approval of Strategic Investment Plans (SIPs) submitted by the AIP for each cluster, detailing infrastructure, equipment, course alignment and training outcomes.

(c) & (d) The selection of ITIs and corresponding State/UT-wise budget allocations will depend on  the  proposals  received  from  State/UT  Governments,  subject  to  readiness  and  industry collaboration.  Specific  clusters  of  ITIs,  including  in  North  East  Delhi,  Sidhi  Lok  Sabha Constituency (Madhya Pradesh), and Dakshina Kannada (Karnataka), will be considered based on proposals received from State/UT Governments in consultation with industry partners.

(e) Under the scheme, five National Centres of Excellence for Skilling are to be setup within National  Skill  Training  Institutes  located  at  Bhubaneswar,  Chennai,  Hyderabad,  Kanpur,  and Ludhiana.  These  Centres  will  focus  on  advanced  training  of  trainers,  industry-led  skilling programmes,  and  exposure  to  global  practices.  They  will  also  conduct  capacity  building programmes for instructors and staff of ITIs, for which States/UTs may depute faculty from time to  time.  These  Centres  will  be  available  to  ITIs  across  the  country,  and  may  also  cater  to institutions in States such as Chhattisgarh and Rajasthan, including districts like Jalore and Sirohi, based  on  proposals  received  and  in  accordance  with  scheme  guidelines  and  State/UT participation.