Key Facts and Data Points

  • Scheme Name: Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM‑SETU)
  • Cabinet Approval: 2025
  • Budget: Rs 60,000 crore
  • Governance: National Steering Committee (NSC) under Ministry of Skill Development & Entrepreneurship
  • Model: Hub‑and‑Spoke ITI upgradation (200 Hub ITIs each mentoring ~4 Spoke ITIs)
  • National Skill Training Institutes (NSTIs) upgraded: 5 (Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana) – to become Centres of Excellence
  • SPV Structure: Industry partner 51% equity, Government 49%; industry can receive up to 83% of funding for infrastructure & training
  • New Courses: 31 new‑age courses under Craftsmen Training Scheme (CTS)
  • Target Sectors: Advanced manufacturing, electronics, mobility, logistics

Background and Context

  • ITIs have been the backbone of India's vocational training but face challenges of outdated curricula, inadequate infrastructure, and weak industry linkage.
  • The Skill Development Mission (2015) highlighted the need for a ‘industry‑led’ approach to bridge the skill gap.
  • PM‑SETU builds on earlier initiatives like Skill India and Pradhan Mantri Kaushal Vikas Yojana (PMKVY), shifting focus from government‑centric to industry‑government partnership.

Significance for India / Governance / Policy

  • Employment Generation: By modernising training, the scheme aims to improve placement rates, directly supporting the government's goal of creating 10 million jobs by 2030.
  • Economic Competitiveness: Aligning skills with sectors such as advanced manufacturing positions India favourably in global value chains.
  • Public‑Private Partnership (PPP) Model: The SPV framework serves as a template for future PPPs in education and skill development.
  • Regional Balance: Hub‑and‑Spoke model ensures skill infrastructure reaches semi‑urban and rural areas, reducing regional disparities.

Related Constitutional / Legal Provisions

  • Article 41 (Directive Principles) – Right to work, education and public assistance.
  • National Skill Development Mission (2015) – statutory backing for skill initiatives.
  • Industrial Training (IT) Act, 1948 – governs ITIs; PM‑SETU amendments will be made under this act.

Implementation Highlights

  • National Steering Committee (NSC): Provides strategic direction and monitors progress.
  • Expression of Interest (EOI): Invited Anchor Industry Partners (AIPs) to form SPVs.
  • Curriculum Redesign: Industry partners can propose new curricula, ensuring relevance.
  • Digital Learning: Integration of digital labs, VR/AR tools for hands‑on training.
  • Funding Mechanism: Up to 83% of project cost can be funded by the central government, with industry contributing the balance.

Challenges & Way Forward

  • Ensuring Quality of Industry Partners: Need robust selection criteria to avoid token participation.
  • Monitoring & Evaluation: Establish clear KPIs (placement rate, skill gap reduction) and periodic audits.
  • Scalability: Replicating the hub‑spoke model in remote regions may require additional logistical support.
  • Skill‑Job Mapping: Continuous liaison with sectoral bodies to keep curricula updated.

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