Lok Sabha Question No. 5920 (UNSTARRED), answered on 2026-03-30
Subject: Operationalisation of PM–SETU
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Jashubhai Bhilubhai Rathva

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION No. 5920

ANSWERED ON 30.03.2026

## OPERATIONALISATION OF PM -SETU

## 5920.    SHRI JASHUBHAI BHILUBHAI RATHVA:

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

- (a)          the  details  and  current  status  of  implementation  of  Pradhan  Mantri  Skilling  and Employability Transformation through Upgraded ITIs (PM -SETU), including phasing and coverage of Government ITIs identified under the hub-and-spoke model;
- (b)        the details of institutional framework adopted for establishment and functioning of Special Purpose Vehicles (SPVs) with Anchor Industry Partners for co-management of ITI clusters;
- (c)        the methodology followed for course redesign and introduction of new trades aligned with labour market demand and State-specific sectoral strengths; and
- (d)          the  details  of  capacity  augmentation  measures  undertaken  under  PM-SETU,  including upgradation of National Skill Training Institutes as Centres of Excellence?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

- (a) to (d)       The Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM SETU) scheme  envisages  to  enhance  the  overall  quality  and  relevance  of  vocational  training  with upgraded labs, machines, and industry-aligned curriculum 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 wherein upgradation includes 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.

Pradhan Mantri Skilling & Employability Transformation through Upgraded ITIs (PM SETU) is a Centrally  Sponsored  Scheme  announced  under  Budget  2024-25  and  Budget  2025-26  with  an outlay of ₹60,000 crore (Central Share: ₹30,000 crore, State Share: ₹20,000 crore and Industry Share:  ₹10,000  crore),  with  co -financing  to  the  extent  of  50%  of  Central  share  by  the  Asian Development Bank and the World Bank, equally.

Under  the  PM-SETU  scheme  industry-led  Special  Purpose  Vehicles  (SPVs)  would  lead  the upgradation and be empowered to propose necessary interventions relating to curriculum redesign, training delivery models, infrastructure upgradation and industry exposure, in alignment with local industry needs and the Scheme guidelines.

The selection of ITIs under 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 in collaboration with industry partners. Ministry of Skill Development and Entrepreneurship (MSDE) has constituted National Steering Committee (NSC) chaired by Secretary, MSDE, an apex body to provide the overall  vision  for  the  scheme,  facilitate  broad  policy  direction,  finalize  operational  guidelines, monitor,  and  conduct  course  correction.   32  States/UTs  have  constituted  their  State  Steering Committee (SSC) led by Chief Secretary of the State/UT, an apex body at the State/UT level for guiding and overseeing the implementation of scheme. 19 States/UTs have floated their proposal for inviting the interest of industry. For selection of the industry partner to form Special Purpose Vehicle  (SPV),  a  Strategic  Investment  Plan  (SIP)  by  industry  is  required  to  be  submitted  in response to the Request for Proposal (RFP). Further, MSDE has floated Expression of Interest for inviting  industry  partner  to  lead  the  Institute  Management  Committee  (IMC)  for  National  Skill Training Institute (NSTI). Further, in respect to the National Centres of Excellence for Skilling in the selected NSTIs under the PM-SETU scheme, a Memorandum of Understanding has been signed with Singapore for NSTI Chennai, a Joint Declaration of Intent has been exchanged with Germany for NSTI Hyderabad, and a Letter of Intent has been exchanged with France for NSTI Kanpur to strengthen institutional capacity and align training with global standards.

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