Lok Sabha Question No. 4939 (UNSTARRED), answered on 2026-03-23
Subject: ITI Upgradation under PM SETU
Ministry: SKILL DEVELOPMENT AND ENTREPRENEURSHIP
Asked by: Shri Tejasvi Surya

## GOVERNMENT OF INDIA MINISTRY OF SKILL DEVELOPMENT AND ENTREPRENEURSHIP

## LOK SABHA UNSTARRED QUESTION No. 4939 ANSWERED ON 23.03.2026

## ITI UPGRADATION UNDER PM SETU

## 4939.  SHRI TEJASVI SURYA:

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

- (a)         the  details  of  PM  SETU  scheme  approved  by  the  Union  Cabinet  in  2025,  including  its objectives,  total  outlay  of  Rs.  60,000  crore  and  the  respective  contributions  of  the  Central Government, State Governments and industry;
- (b)         the  total  number  of  Industrial  Training  Institutes  (ITIs)  proposed  to  be  upgraded,  along with the current status of implementation and funds released so far, State/UT-wise;
- (c)       the details of outcome-based milestones agreed upon with the Asian Development Bank and the World Bank as co-financiers of the scheme along with the mechanism in place by the Government to measure and independently verify results under the said scheme;
- (d)         the  steps  taken  by  the  Government  to  ensure  that  ITIs  located  in  educationally  and industrially backward districts are prioritised for upgradation under PM SETU, including districts in Karnataka along with the proposed timeline for completion; and
- (e)         the  specific  details  of  ITIs  identified  for  upgradation  in  Bengaluru  Urban  and  Bengaluru Rural districts?

## 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.

PMSETU is  a  Centrally  Sponsored  Scheme  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.

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).

Progress under the scheme is monitored through Six (6) Disbursement Linked Indicators (DLIs), which  are  periodically  reviewed  through  independent  third-party  verification.  Indian  Institute  of Management Indore has been engaged to carry out this verification.

## The DLIs are as follows:

- I. DLI #1: Employment outcomes for graduates of supported ITIs improved.
- II. DLI #2: Access to better quality training programs of supported ITIs increased.
- III. DLI #3: Governance and management of supported ITIs strengthened.
- IV. DLI #4: State governance and leadership for enabling environment for ITI ecosystem strengthened.
- V. DLI #5: Quality of training at NSTIs increased.
- VI. DLI #6: National governance and leadership strengthened.

(e)         The  State  Government  of  Karnataka  has  identified  two  clusters  under  the  PM-SETU Scheme,  with  Hub  ITIs  located  in  the  districts  of  Bengaluru  and  Kalaburagi.  The  State  of Karnataka has floated Expression of Interest (EOI) for inviting industry proposal.  At present, no proposal  or  Strategic  Investment  Plan  (SIP)  from  the  State  is  pending  for  consideration  or approval  before  the  National  Steering  Committee  (NSC).  The  details  of  the  ITIs  selected  in Bengaluru Urban and Bengaluru Rural are provided in table below:

| State     | District                 | Hub/Spoke   | Name of ITI                                |
|-----------|--------------------------|-------------|--------------------------------------------|
| Karnataka | Bengaluru                | Hub         | Govt. ITI Peenya, Tumkur Road              |
| Karnataka | Bengaluru                | Spoke       | Govt. ITI, B.T. Center,Tumkur Rd,Bangalore |
| Karnataka | Bengaluru                | Spoke       | Govt. ITI, Domlur,Bangalore                |
| Karnataka | Bengaluru                | Spoke       | Govt. ITI, Hosur Road,Bangalore            |
| Karnataka | Bangalore Rural district | Spoke       | Govt. ITI, Devanahalli                     |

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