Lok Sabha Question No. 236 (UNSTARRED), answered on 2026-02-02
Subject: Objectives of PM-SETU Scheme
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Bhartruhari Mahtab, Shri Bhojraj Nag, Dr. Hemant Vishnu Savara, Shri Avimanyu Sethi, Shri Pradeep Kumar Singh, Smt. Kamlesh Jangde, Shri Anil Firojiya, Shri Vijay Baghel, Shri Praveen Patel, Shri Dilip Saikia, Shri Lumbaram Choudhary, Shri Janardan Mishra, Shri Gopal Jee Thakur, Shri Suresh Kumar Kashyap, Shri Dineshbhai Makwana

## GOVERNMENT OF INDIA

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. † 236

ANSWERED ON 02.02.2026

## OBJECTIVES OF PM-SETU SCHEME

†236 SHRI PRAVEEN PATEL:

SHRI LUMBARAM CHOUDHARY:

SHRI BHARTRUHARIMAHTAB:

DR. HEMANT VISHNU SAVARA:

SHRI DILIPSAIKIA:

SMT. KAMLESH JANGDE:

SHRI PRADEEP KUMAR SINGH:

SHRI BHOJRAJ NAG:

SHRI VIJAY BAGHEL:

SHRI GOPAL JEE THAKUR:

SHRI DINESHBHAI MAKWANA:

SHRI JANARDAN MISHRA:

SHRI SURESH KUMAR KASHYAP:

SHRI ANIL FIROJIYA:

SHRI AVIMANYUSETHI:

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

- (a) the  objectives  and  key  components  of  the  Prime  Minister  Skilling  and EmployabilityTransformation through Upgraded ITIs (PM-SETU) scheme to strengthen  the  startup  andentrepreneurship  ecosystem,  especially  for  early-stage enterprises and first-time entrepreneurs;
- (b) the  details  of  progress  made  so  far  in  the  implementation  of  PM-SETU  in respect ofinstitutional systems, stakeholder participation (onboarding) and coordination withimplementingagencies;
- (c) the manner in which the scheme seeks to integrate skilling, mentorship, credit facilitationand  market  access  for  startups  and  aspiring  entrepreneurs  and  the initiatives taken by theGovernment for skill development of startups and entrepreneurs in Madhya Pradesh andChhattisgarh;
- (d) whether the Government has any plan to promote the PM-SETU scheme for startups andentrepreneurship in tribal district like Palghar in Maharashtra and if so, the details thereof; and
- (e) the  current  status  of  the  implementation  of  said  schemes and  the  details  of the progressreported thereunder particularly in Darbhanga district of Bihar?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

(a)to (e) The Cabinet has approved the Pradhan Mantri Skilling and Employability Transformation 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  Industrial  Training  Institutes (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.

PM-SETU  focuses  on  improving  employability  outcomes  through  industry-led governance,  and  indirectly  supports  self-employment  and  entrepreneurship  by enabling learners (including early-stage enterprises and first-time entrepreneurs) to acquire  industry-relevant  skills,  gain  exposure  to  real  work  environments,  and access career guidance, placement support, and self-employment support through strengthened institutional systems and industry linkages.

As per the Cabinet approval, the selection of ITIs under PM-SETU will be 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. MSDE  has  constituted  National  Steering  Committee  (NSC)  chaired  by  Secretary, MSDE, an apex body to provide the overall vision for the scheme, facilitate broad policydirection, finalize operational guidelines, monitor, and conduct course correction.    25  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 andoverseeing the implementation of scheme. 10 States/UTs have floated their proposal for inviting the interest of industry.

PM-SETU  is  primarily  a  vocational  education  and  training  upgradation  scheme aimed at strengthening the ITI & NSTI ecosystem through industry-led governance, modern  infrastructure  and  improved  training  delivery  and  outcomes.  The  scheme does  not  provide  any  support  for  startups/early-stage  enterprises  as  a  dedicated startup programme.

As per the details received from Government of Maharashtra, three (3) clusters in the districts of Pune, Nagpur and Chhatrapati Sambhajinagar have been identified in  Maharashtra  in  the  pilot  phase.  No  proposal  for  ITI/cluster  from  Palghardistrict has been received in the pilot phase.

As per the details received from Government of Bihar, two (2) clusters in the districts of Patna and Darbhanga have been identified for pilot phase.  Request For Proposal (RFP) is to be issued by State to invite the interest of industry.

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