The Cabinet has approved the Pradhan Mantri Skilling and Employability Transformation through Upgraded Industrial Training Institutes (PM-SETU) scheme to enhance the quality and relevance of vocational training across India. The Ministry of Skill Development and Entrepreneurship (MSDE) said the scheme aims to improve training delivery in Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs), modernise infrastructure and equipment, introduce industry aligned courses in new sectors, strengthen industry linkage for demand driven skilling and enhance trainer capacity. The programme will support both employment and self employment initiatives by aligning curriculum and delivery with employer needs.

PM-SETU comprises two components. Component I will upgrade 1,000 Government ITIs, including 200 Hub ITIs and 800 Spoke ITIs, under a hub and spoke model with smart classrooms, modern laboratories, digital content and new industry aligned courses. Component II focuses on capacity augmentation of five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana and on establishing sector specific National Centres of Excellence for advanced trainer training in partnership with global institutions.

Implementation will be state led, with respective State and Union Territory Governments selecting ITIs in consultation with industry and submitting proposals in collaboration with industry partners. The MSDE has constituted a National Steering Committee (NSC) chaired by the Secretary of MSDE to provide strategic direction, finalise operational guidelines and monitor implementation, while State Steering Committees (SSC) led by the Chief Secretary will guide state level rollout. Industry led Special Purpose Vehicles (SPVs) under the scheme will be empowered to propose interventions on curriculum redesign, training delivery, infrastructure and placement or self employment facilitation aligned to local industry needs.

To date 25 States and Union Territories have constituted State Steering Committees and 10 have floated proposals to invite industry interest, indicating initial traction in implementation. The scheme is intended to improve employability outcomes through industry governance and by strengthening institutional systems for career guidance, placement and self employment support. The Minister of State (Independent Charge) at MSDE, Jayant Chaudhary, provided this information in a written reply to the Rajya Sabha.