Lok Sabha Question No. 1308 (UNSTARRED), answered on 2025-12-08
Subject: Coordination with Punjab Skill Development Mission
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Malvinder Singh Kang

## GOVERNMENT OF INDIA

## MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION NO. 1308

ANSWERED ON 08.12.2025

## COORDINATION WITH PUNJAB SKILL DEVELOPMENT MISSION

1308.  SHRI MALVINDER SINGH KANG:

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

- (a) whether  it  is  a  fact  that  the  Government  has  taken  specific  initiatives  to  upgrade Government ITIs into Centres of Excellence in Punjab under the national schemes, if so, the details thereof;
- (b) the  details  of  progress  made  in  establishing  industry-led  Special  Purpose  Vehicles (SPVs) for this transformation;
- (c) the  steps  taken  by  the  Government  to  integrate  the  revised  National  Apprenticeship Promotion  Scheme  with  regional  industry  demands  in  Punjab  and  the  manner  in  which  this integration has influenced apprenticeship engagement and employment outcomes;
- (d) whether it is a fact that Punjab has participated in the Entrepreneurship Skill Development Programme (ESDP), especially for marginalized groups such as SC/ST, women and differently-abled person; and
- (e) the measures taken by the Government in coordination with Punjab's Skill Development Mission  to  promote  innovative  financing  mechanisms  such  as  the  Skill  Impact  Bond  and restructured Model Skill Loan Scheme for enabling youth entrepreneurship?

## ANSWER

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

(SHRI JAYANT CHAUDHARY)

- (a)        Yes  Sir,  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 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 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. As per Cabinet approval, the scheme is proposed to be implemented pan-India,  including  in  the  state  of  Punjab,  based  on  proposals  received  from States/UTs.

- (b) The guidelines for roll-out of scheme have been issued after approval of National Steering Committee under PM-SETU scheme. As per the guidelines, States/UT are required to form the  State  Steering  Committee  and  float  Expression  of  Interest/  Request  for  proposal  for receiving proposals from Industry Partners. As on date, as per the communication received 11 States/UTs (Andhra  Pradesh,  Assam,  Chandigarh,  Delhi,  Karnataka,  Ladakh,  Madhya

Pradesh,  Meghalaya,  Sikkim,  Telangana,  Uttar  Pradesh)  have  notified  their  State  Steering Committee. However, no industry proposal has  yet been forwarded by SSC for approval of National Steering Committee.

(c)   The National Apprenticeship Promotion Scheme (NAPS) aims to promote apprenticeship training throughout the country, including Punjab. The scheme is currently in its second phase (NAPS-2). The steps taken to integrate with regional industry demands are as follow:

- i. The Apprentices Act (amended in 2014) allows industries to run their own programs as "Optional Trades," utilizing their available facilities to provide training that meets specific local  skill  demands.  There  are  currently  260+  designated  trades  and  750+  optional trades available to cater to the requirements of local industries.
- ii. Under NAPS-2, the Government provides partial stipend support (25% of the minimum stipend, up to ₹1,500 per month) paid directly to apprentices via Direct Benefit Transfer (DBT).
- iii. This flexibility and financial support have influenced engagement significantly. The total apprenticeship engagement in the State of Punjab under NAPS-2 is 57,885 (up to 31st October 2025).

(d) Yes, Sir. The  Government  has  participated  in initiatives to create an inclusive entrepreneurial ecosystem. The Ministry of Skill Development and Entrepreneurship (MSDE), through the National Institute for Entrepreneurship  and  Small  Business  Development (NIESBUD),  is  implementing  the  Entrepreneurship-based  Skill  Development  Programme (ESDP) on Solar Entrepreneurship under the PM -Surya Ghar Muft Bijli Yojana in Punjab.

This  programme  targets  marginalized  groups  including  SC/ST  communities,  women,  and Persons with Disabilities (PwD), providing mentorship, handholding, and market linkages. The participation details for Punjab are as follows:

| Project Period             |   Total No. of Participants Trained |   No. of Women Participants Trained |   No. of SC Participants Trained |   No. of ST Participants Trained |   No. of PwD Participants Trained |
|----------------------------|-------------------------------------|-------------------------------------|----------------------------------|----------------------------------|-----------------------------------|
| 2024 - 25 to November 2025 |                                1757 |                                 190 |                              489 |                                2 |                                 3 |

Note -The  above  programme  has  both  entrepreneurship  and  skilling  components  related  to  solar technologies.

(e) The Government has introduced innovative financing mechanisms such as the Skill Impact Bond and the Model Skill Loans to enable youth skilling and entrepreneurship. However, there is  currently  no  specific  coordination  with  the  Punjab  Skill  Development  Mission  regarding these initiatives.

The details of the central schemes aimed at enabling access to finance are as follows:

- Restructured Model Skill Loan Scheme: This scheme is anchored by the Ministry of Skill Development  &  Entrepreneurship  to  enable  access  to  unsecured,  collateral-free  skill loans from financial institutions for candidates undergoing demand-led skill courses. The scheme has been restructured to facilitate easier  access  to  finance.  As  of  August  31, 2025,  a  total  of  31  lending  institutions  are  registered  under  the  scheme,  including  12 NBFCs and 2 Private Sector Banks which registered following the recent modifications.
- Skill  Impact  Bond:  This  is  an  innovative  outcomes-based  financing  tool  that  utilizes private  sector  capital  and  expertise.  It  focuses  on  job  placement  and  retention  rather than  merely  on  training  and  certification.  The  bond  is  dedicated  to  benefiting  50,000 young Indians, with a target of 60% women beneficiaries, through skills training and job placement.

*****