The Ministry of Skill Development and Entrepreneurship launched the PM-SETU Scheme on 4th October 2025 with a massive budget of Rs. 60,000 crore. This Centrally Sponsored Scheme aims to transform 1,000 Government Industrial Training Institutes across India through industry partnerships and modern infrastructure development.
This comprehensive guide covers the complete funding structure, eligibility requirements for Anchor Industry Partners, implementation model, and how states can participate in this ambitious skilling initiative.
PM-SETU Scheme Overview
| Particulars | Details |
|---|---|
| Scheme Name | Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs |
| Nodal Ministry | Ministry of Skill Development and Entrepreneurship |
| Launch Date | 4th October 2025 |
| Cabinet Approval | May 2025 |
| Total Budget | Rs. 60,000 Crore |
| Implementation Period | Five Years (2025-2028) |
| ITIs to be Upgraded | 1,000 Government ITIs |
| Model | Hub-and-Spoke (200 Hubs + 800 Spokes) |
| Co-Financing Partners | World Bank & Asian Development Bank |
| Official Website | msde.gov.in |
The scheme operates under a unique governance structure where upgraded ITIs remain government-owned but industry-managed through Special Purpose Vehicles with Anchor Industry Partners holding 51% stake while government retains 49% ownership.
PM-SETU Scheme Funding Structure
The Rs. 60,000 crore investment represents the largest-ever allocation for ITI upgradation in Indian history. The funding flows through multiple channels ensuring adequate resources reach every participating institution.
Government Co-Funding Details
The central government provides up to 83% of the project cost for ITI transformation under PM-SETU. This substantial contribution reduces the financial burden on industry partners while ensuring quality infrastructure development.
State and Union Territory governments contribute their share based on existing cost-sharing arrangements for centrally sponsored schemes. The remaining portion comes from Anchor Industry Partners who manage the upgraded clusters.
International Financial Support
World Bank and Asian Development Bank serve as global co-financing partners for PM-SETU. Their involvement brings international expertise, technical supervision, and global best practices in vocational training design and delivery.
This blended financing model mobilizes adequate resources while preventing the scheme from becoming another bureaucratic exercise without measurable outcomes.
Eligibility Criteria for Anchor Industry Partners
Industries seeking participation in PM-SETU must meet specific qualifications before managing ITI clusters. The Ministry has issued Expression of Interest inviting credible companies to lead the transformation process.
Basic Requirements for Industry Partners
- Demonstrated experience in skill development or vocational training
- Financial capability to invest in infrastructure upgradation
- Commitment to outcome-based training and placement services
- Willingness to form Special Purpose Vehicle with government
- Capacity to design industry-relevant curriculum
- Ability to establish advanced laboratories and digital infrastructure
Responsibilities Under Partnership
Anchor Industry Partners undertake comprehensive responsibilities including:
- Designing job-linked curricula aligned with market demands
- Setting up modern equipment and machinery in ITIs
- Supporting faculty upskilling through industry exposure programs
- Establishing innovation hubs within campus premises
- Ensuring placement support for trained candidates
- Managing day-to-day operations through SPV structure
Hub-and-Spoke Implementation Model
PM-SETU follows a carefully designed hub-and-spoke architecture ensuring maximum geographic coverage while concentrating excellence in strategic locations.
Hub ITI Features
The 200 hub ITIs serve as centres of excellence equipped with:
- Advanced infrastructure and modern workshops
- Innovation and incubation centres
- Production units for practical training
- Training of trainer facilities
- Dedicated placement services
- Digital learning systems
Spoke ITI Benefits
Each hub supports approximately four spoke ITIs in surrounding regions. Spoke institutions gain access to:
- Advanced machinery from hub centres
- Modern equipment and tools
- Standardized curriculum from industry partners
- Placement linkages through hub networks
- Faculty development opportunities
First Phase Implementation Clusters
The Ministry identified 15 hub-and-spoke ITI clusters for initial rollout spanning diverse regions and industrial ecosystems across India.
| State/UT | Cluster Location |
|---|---|
| Bihar | Patna, Darbhanga |
| Haryana | Sonipat |
| Andhra Pradesh | Visakhapatnam |
| Uttar Pradesh | Bijnor, Meerut |
| Uttarakhand | Haridwar |
| Madhya Pradesh | Ujjain |
| Karnataka | Bengaluru Urban |
| Rajasthan | Bharatpur |
| Punjab | Hoshiarpur |
| Telangana | Hyderabad |
| Odisha | Sambalpur |
| Tamil Nadu | Chennai |
| Assam | Guwahati |
States including Karnataka, Gujarat, Assam, and Chandigarh have already issued EOIs inviting industry participation for their ITIs.
National Skill Training Institutes Upgradation
Five NSTIs receive special focus under PM-SETU for transformation into global Centres of Excellence with international partnerships.
| NSTI Location | State |
|---|---|
| Bhubaneswar | Odisha |
| Chennai | Tamil Nadu |
| Hyderabad | Telangana |
| Kanpur | Uttar Pradesh |
| Ludhiana | Punjab |
These institutes will benchmark against international standards and provide advanced training programs beyond regular ITI courses.
New-Age Trades and Courses
PM-SETU introduces demand-driven courses covering emerging sectors where skilled manpower requirements are growing rapidly.
The scheme focuses on trades including:
- Artificial Intelligence applications
- Renewable energy systems
- Robotics and automation
- Advanced manufacturing techniques
- Digital services and IT
- Electronics and hardware
- Logistics and supply chain
- Electric vehicle technology
Currently, ITIs impart training in 169 trades with approximately 9 lakh students achieving National Trade Certificate annually.
How States Can Participate in PM-SETU
State governments play a crucial role in PM-SETU implementation. The process for state participation involves systematic steps.
Step 1: States identify eligible ITIs based on selection criteria developed in consultation with industry partners.
Step 2: Priority given to ITIs from aspirational districts and areas with strong industrial potential.
Step 3: States issue Expression of Interest inviting Anchor Industry Partners.
Step 4: Selection of credible industry partners through transparent evaluation.
Step 5: Formation of Special Purpose Vehicle with 51-49 ownership structure.
Step 6: Infrastructure upgradation and curriculum development begins.
Step 7: Training programs launched with outcome-based monitoring.
Selection Criteria for ITI Upgradation
The Directorate General of Training coordinates with states for ITI selection. Key criteria include:
- Representation from aspirational districts
- Local industrial potential and employment opportunities
- Existing infrastructure readiness
- Industry collaboration possibilities
- Alignment with emerging skill requirements
- Geographic distribution ensuring regional balance
Benefits for ITI Students Under PM-SETU
Students enrolled in upgraded ITIs gain significant advantages through this transformation.
Enhanced Training Quality
- Access to modern equipment and advanced machinery
- Industry-designed curriculum matching job requirements
- Hands-on practical training in production units
- Exposure to new-age trades and technologies
Improved Employment Outcomes
- Direct placement linkages through Anchor Industry Partners
- Internship opportunities during training period
- Industry certification alongside NTC
- Pathways to long-term diplomas and executive programs
Important Dates for PM-SETU
| Event | Date |
|---|---|
| Cabinet Approval | May 2025 |
| Scheme Launch | 4th October 2025 |
| Implementation Period | 2025-2028 (Five Years) |
| First Phase Focus | Patna & Darbhanga ITIs |
Important Links
| Description | Link |
|---|---|
| Official MSDE Portal | https://msde.gov.in |
| DGT Portal | https://dgt.gov.in |
Frequently Asked Questions
What is the total budget for PM-SETU Scheme?
The scheme has an allocated budget of Rs. 60,000 crore for the five-year implementation period from 2025 to 2028.
How many ITIs will be upgraded under PM-SETU?
A total of 1,000 Government ITIs across India will be transformed through the hub-and-spoke model comprising 200 hubs and 800 spokes.
Who are the co-financing partners for PM-SETU?
World Bank and Asian Development Bank provide global co-financing support along with central and state government contributions.
What is the ownership structure under PM-SETU?
Each upgraded ITI operates through a Special Purpose Vehicle where industry partners hold 51% stake while government retains 49% ownership.
Which states have issued EOIs for PM-SETU?
Karnataka, Gujarat, Assam, and Chandigarh have already issued Expression of Interest inviting industry participation as of late 2025.
What percentage does government co-fund under PM-SETU?
The government provides up to 83% of the project cost for ITI transformation under this scheme.
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