Industry-led upgradation of ITIs and NSTIs under the PM-SETU scheme.

New Delhi, February 9, 2026: The upgradation of Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs) under the Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU) scheme is proposed to be implemented through industry-led Special Purpose Vehicles (SPVs).

For the selection of industry partners, a Strategic Investment Plan (SIP) is required to be submitted in response to a Request for Proposal (RFP).

MoS MSDE shared the information about ITI in the parliament:

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

So far, twelve States and Union Territories have floated Expressions of Interest (EOIs)/RFPs to invite industry participation.

The release of funds for ITI upgradation or for the establishment of National Centres of Excellence (NCoEs) under PM-SETU is subject to the approval of the SIP.

The selection of it is under the scheme and is being carried out by the respective State/UT Governments, in consultation with industry partners, to ensure alignment with emerging skill requirements and local industrial potential.

Financial assistance for Hub-and-Spoke ITI clusters will be finalized based on industry responses to the proposed clusters.

Five ITIs picked for the pilot project:

In Andhra Pradesh, five Government ITIs have been identified under the pilot phase of PM-SETU, forming one cluster consisting of one Hub ITI and four Spoke ITIs. The Hub ITI is proposed to be located in Visakhapatnam, while the Spoke ITIs are proposed to be located in each Vizianagaram district and the Alluri Sitarama Raju district.

The benefits of the scheme are proposed to be realized through a State-led selection process, active industry participation, and a structured implementation framework.

Consultations have been held with industry associations and industry players, and multiple hand-holding workshops have been conducted with States and UTs.

Several States/UTs have sought clarifications and support in the preparation of RFPs, SIPs, and related templates.

To facilitate timely and high-quality proposal submissions, the Government has issued a model RFP document, detailed SIP templates, and conducted regional capacity-building workshops to support both States/UTs and industry partners.

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EOM.