PM-SETU Scheme: Modernizing Government ITIs for Skill Development

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Key takeaways

The government launched the PM-SETU scheme with a 5-year budget of Rs 60,000 crore to upgrade 1,000 government ITIs nationwide.
The scheme uses a Hub-and-Spoke model where one Hub ITI guides four Spoke ITIs with shared resources and industry partners.
The National Steering Committee recently approved Rs 1,194.92 crore to modernize five ITI clusters across Maharashtra, Odisha, and Jammu & Kashmir.
The program requires ITI clusters to gain ISO certification and adopt global trade standards set by WorldSkills.

The National Steering Committee of the PM-SETU scheme recently approved five Strategic Investment Plans worth Rs 1,194.92 crore.
This funding will modernize Industrial Training Institute (ITI) clusters across Maharashtra, Odisha, and Jammu & Kashmir.

The PM-SETU scheme is a national flagship program designed to upgrade government ITIs with modern infrastructure and industry-relevant training.
The Central Government formally launched this scheme on October 4, 2025, following Union Cabinet approval on May 7, 2025, with a 5-year budget of Rs 60,000 crore.
The Ministry of Skill Development and Entrepreneurship (MSDE) is the main nodal ministry managing this national initiative.
The program aims to transform 1,000 Government ITIs across India using a collaborative Hub-and-Spoke model.

The scheme groups ITIs into clusters where one lead Hub ITI shares modern tools and expertise with four Spoke ITIs.
Private companies co-invest in these clusters, design course material, manage operations through Special Purpose Vehicles (SPVs), and help students get jobs.
The curriculum focuses on emerging industry fields by adding artificial intelligence tools, simulation equipment, and digital learning platforms.
Funding comes from a joint financial model supported by Central and State governments, industry partners, and multilateral development banks.
Component II focuses on instructor training through National Skill Training Institutes (NSTIs), which trained 3,744 trainers by October 2026.

The 6th National Steering Committee meeting, chaired by MSDE Secretary Debashree Mukherjee, sanctioned Rs 1,194.92 crore for five ITI clusters.
The Kataka cluster in Odisha received Rs 240.50 crore in partnership with the Tata Steel Foundation.
The Pune cluster in Maharashtra received Rs 241.00 crore in partnership with BVG India Limited.
The Chhatrapati Sambhajinagar cluster in Maharashtra received Rs 238.01 crore in partnership with Belrise Industries Limited.
The Jammu cluster in Jammu & Kashmir received Rs 240.00 crore in partnership with Eagle Infra India Limited.
The Srinagar cluster in Jammu & Kashmir received Rs 235.41 crore in partnership with Inderdeep Infra India Limited.
The committee asked all clusters to get ISO certification and include at least one trade standard from the WorldSkills competition framework.