Lok Sabha Question No. 1411 (UNSTARRED), answered on 2026-02-09
Subject: PM-SETU to Modernise Government ITIs in Tamil Nadu
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Selvam G, Shri C N Annadurai

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 1411 ANSWERED ON 09.02.2026

## PM-SETU TO MODERNISE GOVERNMENT ITIs IN TAMIL NADU

## 1411.  SHRI SELVAM G:

SHRI CN ANNADURAI:

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

- (a) whether  the  Government  has  launched  PM-SETU  to  modernize  1,000  Government Industrial Training Institutes (ITIs) with upgraded labs, machines, and industry-aligned curriculum.
- (b) the details of the number of Government ITIs in Tamil Nadu selected under PM-SETU for upgradation;
- (c) whether  students  from  the  State  are  receiving  improved  placement  opportunities  and industry linkages as a result of the modernisation efforts, if so, the details thereof;
- (d) the details of the funds allocated, released, and utilised for upgrading ITIs in Tamil Nadu during the last three years under the said and other related schemes; and
- (e) the  steps  taken/being  taken  by  the  Government  to  ensure  that  modernised  training translates into higher employability and entrepreneurship outcomes for youth in semi-urban and rural districts of the State?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

- (a) 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 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.
6. (b)  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. The Tamil Nadu state has identified 34 government ITIs (6 Hub ITIs and 28 Spoke ITIs) under the PM-SETU Scheme in pilot phase.

However, the Hub-and-Spoke ITI clusters would be finalized for financial assistance on the basis of the response of industry partners for the proposed clusters.

(c)  &  (d)        PM-SETU  focuses  on  improving  employability  outcomes  through  industry-led governance, and propose to enable learners 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.  For selection of the industry partner, a Strategic Investment Plan (SIP) is required to be submitted in response to the Request  for  Proposal  (RFP).  So,  far  twelve  (12)  States/UTs  have  floated  the  Expression  of Interest/RFP for inviting industry interest. So far, no SIP proposal have been submitted for the approval of National Steering Committee (NSC).

As no SIP has been approved so far, no funds have been released for ITI upgradation under the PMSETU Scheme. However, out of the total Central financial assistance of ₹3.99 crore for ITI Coimbatore  under  the  upgradation  of  existing  Government  ITIs  into  Model  ITIs  scheme,  an amount of ₹49.50 lakh was released during FY 202324.

(e) The Government is ensuring that modernised training translates into improved employability and entrepreneurship outcomes, including in semi-urban and rural districts, through the industryled Special Purpose Vehicles (SPVs) under the Scheme. These SPVs are proposed to lead the upgradation and would be empowered to undertake interventions such as curriculum redesign, improved training delivery models, infrastructure upgradation, industry exposure, and strengthened placement or self-employment facilitation, in alignment with local industry needs and the Scheme guidelines.

In  addition,  the  Strategic  Advisory  and  Reforms  Taskforce  for  Holistic  ITI  Transformation (SARTHI) has been constituted under the chairmanship of the Minister of State (Independent Charge),  Ministry  of  Skill  Development  and  Entrepreneurship,  to  provide  advisory  inputs  on curriculum development and standardisation, trade testing and certification reforms, accreditation and regulatory norms for ITIs, strengthening of industry -institute linkages, and facilitation of interministerial and institutional coordination under the Craftsmen Training Scheme (CTS).

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