Lok Sabha Question No. 1542 (UNSTARRED), answered on 2026-02-09
Subject: Upgradation of ITIs
Ministry: LABOUR AND EMPLOYMENT
Asked by: Shri Eatala Rajender

## GOVERNMENT OF INDIA MINISTRY OF LABOUR AND EMPLOYMENT LOK SABHA

## UNSTARRED QUESTION NO. 1542

TO BE ANSWERED ON 09 TH  FEBRUARY, 2026

## UPGRADATION OF ITIs

## 1542.     SHRI EATALA RAJENDER :

Will the Minister of LABOUR AND EMPLOYMENT be pleased to state:

- whether the plan to upgrade Industrial Training Institutes (ITIs) by the Government is a pivotal step toward enhancing the skill-sets of  our  future  workforce  and  implementing  a  new  scheme  to support  the  skilling  of  20  lakh  youth  during  the  next  five  years ensuring that young population is equipped for the challenges of
- (a) tomorrow; and
- (b) if  so,  the  details  thereof  along  with  the  funds  sanctioned  and utilized in the country, State/UT-wise, particularly in Telangana till date?

## ANSWER

## MINISTER OF STATE FOR LABOUR AND EMPLOYMENT (SUSHRI SHOBHA KARANDLAJE)

(a)  to  (b):    The  Cabinet  has  approved  the  Pradhan  Mantri  Skilling  and Employability 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 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.

As  per  the  Cabinet  approval  20  lakh  youth  are  proposed  to  be trained  over  a  five-year  period  through  new  demand-driven  courses, revamped  existing  trades,  industry-aligned  training,  thereby  equipping young people for the challenges of tomorrow's industry and job markets.

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.

The  selection  of  ITIs  under  the  PM-SETU  Scheme  is  led  by  the respective 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 of identified ITI cluster in collaboration with industry partners.

At  present,  no  proposal  has  been  forwarded  by  the  State/UT Governments. Funds shall be disbursed once the proposals are received from the State/UT Governments, including Telangana for upgradation of ITIs as per the scheme guidelines.

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