The Cabinet has approved the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM SETU) scheme to enhance the overall quality and relevance of vocational training in the country.

The key objectives of the scheme are:

1. To improve the quality of training delivery in Industrial Training Institutes (ITIs) and NSTIs;
2. To modernize infrastructure and equipment as per industry standards;
3. To introduce industry-aligned long-term and short-term courses, especially in new and emerging sectors;
4. To strengthen industry linkage for demand-driven skilling and better employment outcomes; and
5. To enhance the capacity of National Skill Training Institutes (NSTIs) for training of trainers.

The scheme comprises of two components:

1. 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.
2. 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.

PM-SETU focuses on improving employability outcomes through industry-led governance, and indirectly supports self-employment and entrepreneurship by enabling 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. However, a mandatory 120 hours of Employability Skills training (for one-year courses) has been included in the syllabus for all ITI trainees, which covers modules on entrepreneurship, financial literacy and digital literacy, thereby supporting trainees, including rural women, in exploring self-employment opportunities.

The industry-led Special Purpose Vehicles (SPVs) under the Scheme would lead the upgradation and be empowered to propose necessary interventions relating to curriculum redesign, training delivery models, infrastructure upgradation, industry exposure, and placement or self-employment facilitation, in alignment with local industry needs and the Scheme guidelines.

Implementation of the scheme will be overseen by a National Steering Committee (NSC) comprising representatives of the Central Government, State Governments and industry partners, which will provide overall policy guidance. In addition, State Steering Committees (SSCs) chaired by the Chief Secretary of the respective State/UT will monitor progress at the State level. The scheme also provides for periodic monitoring, performance reviews, and third-party impact assessment to ensure effective implementation and achievement of intended outcomes.

This information was given by the Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship (MSDE), Shri Jayant Chaudhary in a written reply in the Lok Sabha today.

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