Govt invites industry to lead upgrade of ITIs under PM-SETU scheme

New Delhi, Dec 24 (PTI) In a major step towards modernising India's workforce, the Ministry of Skill Development and Entrepreneurship (MSDE) on Wednesday said it has officially invited industry leaders to join the PM-SETU (Prime Minister Skilling and Employability Transformation through Upgraded ITIs) scheme.

The ministry has released an Expression of Interest (EOI) to find "anchor industry partners" (AIPs) for the upgrade of National Skill Training Institutes (NSTIs).

Simultaneously, states/UTs have also started releasing EOIs to identify partners who will help transform select industrial training institutes (ITIs). So far, Karnataka, Gujarat, Assam, and Chandigarh have released the EOI.

"This initiative represents a significant change in how vocational training works, moving from government-led policy to a model where the industry takes the lead in managing and executing training," an official statement said.

The PM-SETU scheme was approved by the Union Cabinet in May 2025 with a total budget of Rs 60,000 crore. It was officially launched by the Prime Minister on October 4, 2025, to fill existing gaps in the ITI system by making training more relevant to the modern job market.

The government plans to upgrade 1,000 government ITIs using a "hub-and-spoke" model, where 200 main "hub" ITIs will each support approximately four "spoke" ITIs with high-tech machinery and equipment.

Additionally, the scheme will improve five National Skill Training Institutes (NSTIs) in Bhubaneshwar, Chennai, Hyderabad, Kanpur, and Ludhiana to create global centres of excellence.

A unique feature of PM-SETU is its industry-led governance. Each upgraded ITI will be managed by a special purpose vehicle, which is a partnership where industry leaders hold 51 per cent ownership and the government holds 49 per cent.

This co-investment model allows companies to lead the transformation while receiving up to 83 per cent in government co-funding.

The states/UTs have already started the process, opening doors for participation in sectors like advanced manufacturing, electronics, mobility, and logistics.

As anchor industry partners, companies will play a central role in designing job-linked curricula and building advanced laboratories and digital learning spaces. They will also focus on upskilling teachers through industry experience and creating innovation hubs on campus.

In return, businesses gain a reliable and scalable pipeline of skilled workers and apprentices, directly aligning talent development with their own growth strategies, along with CSR-linked benefits. This structural reform is designed to ensure that India's skilling ecosystem meets the nation's workforce needs. PTI RSN TRB