Lok Sabha Question No. 3853 (UNSTARRED), answered on 2026-03-16
Subject: PM-SETU Pilot Project in Andhra Pradesh
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Appalanaidu Kalisetti

## GOVERNMENT OF INDIA

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 3853

ANSWERED ON 16.03.2026

## PM-SETU PILOT PROJECT IN ANDHRA PRADESH

3853.  SHRI APPALANAIDU KALISETTI:

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

- (a) the current status of the PM-SETU pilot project approved during the Financial year 2025 -26,  including  the  number  of  hubs  and  spoke  centres  sanctioned,  constructed  and  made operational;
- (b) the details of the pilot project implemented along with the centres covered, State/UT-wise and district-wise in Andhra Pradesh;
- (c) the number of beneficiaries trained under the pilot project, State/UT, district and course wise in Andhra Pradesh;
- (d) the details of total funds allocated, released and utilised for the said project during the said period, along with the reasons for any under utilisation of funds;
- (e) the details of any shortfalls or gaps observed during implementation of the said project, including  reasons  for  delays,  infrastructure  challenges  or  inadequate  enrolment  and  the corrective measures taken thereon; and
- (f) the details of key learnings and challenges identified from the said project and the steps taken/being taken by the Government to scale up PM-SETU nationally in subsequent years, including  any  proposed  modifications  in  design  or  implementation  strategy  based  on  pilot outcomes?

## 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 Transformation through Upgraded ITIs  (PM  SETU)  scheme  aims  to  enhance  the  overall  quality  and  relevance  of  vocational training in the country. The Scheme has a total outlay of Rs. 60,000 crore (Central Share -Rs. 30,000 crore, State Share -Rs. 20,000 crore and Industry Share -Rs. 10,000 crore).

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.

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. 15 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).

An  amount  of  Rs.  50  lakhs  have  been  released  to  the  State  of  Andhra  Pradesh  towards engagement  of  Project  Management  Consultants  under  PM-SETU.  Release  of  funds  for Upgradation of ITIs is contingent upon the formation of SPV. MSDE is carrying out necessary consultations to support and handhold States/UTs across various aspects of scheme roll-out.

(e) & (f) The benefits of the scheme are proposed to be achieved through a State-led selection process, active industry participation, and a structured implementation framework. Consultations have been held with industry associations and individual industry players, and multiple  handholding  workshops  have  been  conducted  with  States/UTs.  States/UTs  have sought  clarifications  and  support  in  relation  to  the  preparation  of  RFPs,  SIPs,  and  related templates.

To address these challenges, the Government has taken proactive steps, including issuance of a model RFP document, detailed templates, and organisation of regional capacity-building workshops to enable timely and quality preparation of proposals and SIPs.

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