PM-SETU
Why in News?
The PM-SETU scheme is completed one-year anniversary on October 4, 2026. The Ministry of Skill Development and Entrepreneurship (MSDE) released comprehensive updates on its progress, which includes the identification of 850 Industrial Training Institutes (ITIs) and the operational approval of 14 distinct ITI clusters across various states.
Basic Overview & Objective
- Full Form: Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs.
- Launch Date: It was officially launched by Prime Minister Narendra Modi on October 4, 2025.
- Nodal Ministry: Managed entirely under the Ministry of Skill Development and Entrepreneurship (MSDE).
- Primary Target: To transform 1,000 Government ITIs into modern, high-tech, and industry-aligned training hubs over a span of 5 years.
- Financial Outlay: A massive budget of ₹60,000 crore, structured as a centrally sponsored scheme with shared funding from the central government, state governments, and industry partners.
Dual-Component Structure
The execution framework of the scheme is divided into two distinct components:
The execution framework of the scheme is divided into two distinct components:
- Component I (Hub-and-Spoke Model for ITIs): Upgrades 1,000 Government ITIs. It sets up 200 Hub ITIs, where each hub acts as a mentor and resource share center for an average of four Spoke ITIs (totalling 800 Spokes). Hubs feature advanced labs, incubation centers, and placement cells.
- Component II (Capacity Augmentation for NSTIs): Upgrades five National Skill Training Institutes (NSTIs) into sector-specific National Centres of Excellence. These are located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
Features & Industry Partnership
- Shift to Industry-Led Training: Moves vocational education away from pure government-driven policy to active corporate management. Upgraded ITIs are governed through Special Purpose Vehicles (SPVs) where corporate entities hold a 51% majority ownership.
- Curriculum Modernization: Introduces 31 new-age courses mapping to emerging sectors like advanced manufacturing, green mobility, electronics, Artificial Intelligence, and logistics.
- Training of Trainers (ToT): Prioritizes the advanced skill refinement of instructors at the NSTI level to match modern economic demands.
International Collaborations
To meet global benchmarks, the Indian government has initiated strategic partnerships for its National Centres of Excellence:
To meet global benchmarks, the Indian government has initiated strategic partnerships for its National Centres of Excellence:
- NSTI Chennai: Partnered with Singapore.
- NSTI Kanpur: Partnered with France.
- NSTI Bhubaneswar: Partnered with Australia.
- NSTI Hyderabad: Bound to a joint intent declaration with Germany.
Implementation Status
- Institutional Mapping: Out of the 1,000-target ITIs, 850 ITIs have been identified for redevelopment.
- Financial Approvals: Strategic Investment Plans worth ₹1,237.58 crore have been approved for physical clusters in states like Odisha, Gujarat, and Telangana.
- State Cooperation: 32 States and Union Territories have successfully established active State Steering Committees to coordinate with local industries.
