Lok Sabha Question No. 3578 (UNSTARRED), answered on 2025-08-11
Subject: Implementing Scheme for Upgradation of ITIs
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Malaiyarasan D

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 3578

ANSWERED ON 11.08.2025

## IMPLEMENTING SCHEME FOR UPGRADATION OF ITIs

3578.  SHRI MALAIYARASAN D:

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

- (a) whether  the  Government  is  implementing  any  scheme  for  the  upgradation  of Industrial Training Institutes (ITIs) into advanced training centres or National Centres of Excellence;
- (b) if so, the details of the scheme including objectives, timeline, and funding pattern;
- (c) the number of ITIs upgraded or proposed to be upgraded as Centres of Excellence across the country, State-wise, including Tamil Nadu;
- (d) whether any partnership has been initiated with industry or foreign institutions for curriculum  enhancement,  infrastructure  modernization,  or  faculty  training  under  this initiative;
- (e) the criteria adopted for selecting ITIs for upgradation and whether the Government has a plan to consider more ITIs from Tamil Nadu for inclusion; and
- (f) the  measures  taken  by  the  Government  to  ensure  that  students  from  rural  and economically weaker backgrounds benefit from these upgraded institutions?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

- (a) & (b):   Yes. The Cabinet has approved National Scheme for Upgradation of Industrial Training Institutes (ITIs) and setting up National Centres of Excellence (NCOEs) for skilling, at an estimated cost of ₹60,000 crore (Central Share: ₹30,000 crore, State Share: ₹20,00 0 crore, and Industry Share: ₹10,000 crore).

The key objectives of the scheme are:

- i.  To improve the quality of training delivery in ITIs;
- 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 outcome-based delivery.

(c) Through  the  scheme,  it  has  been  proposed  to  upgrade  a  total  of  one-thousand (1,000) ITIs across the country, including the state of Tamil Nadu. Further, it has also been proposed to set-up five National Centres of Excellence for skilling within NSTIs, including Chennai in Tamil Nadu.

(d) Yes. As part of the efforts to set up the National Centres of Excellence for Skilling, discussions have been held with representatives of countries such as Australia, Germany, Singapore, France, Republic of Korea, and Japan to explore possible cooperation in areas like curriculum improvement, training of trainer, and infrastructure modernization.

(e) As  per  the  Cabinet  approval,  selection  of  ITIs  will  be  led  by  the  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. The selection of ITIs will depend on the proposals  received  from  State/UT  Governments,  subject  to  readiness  and  industry collaboration.

(f) The scheme is to be implemented across the country, including in rural areas. It aims to  improve  access  to  better  training  and  employment  opportunities  for  all  sections  of society, including students from rural and economically weaker backgrounds. State/UTs and industries are encouraged to take up ITIs in rural locations as well. Provision has been made for introducing courses linked to local industry and livelihoods, and strengthening student support services like counselling, remedial learning, and placement assistance.

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