The scheme has been designed with a clear focus on improving training delivery and relevance. One of its primary objectives is to upgrade infrastructure and equipment in ITIs and NSTIs to meet contemporary industry standards.
PM-SETU also aims to introduce long-term and short-term courses aligned with industry needs, particularly in emerging sectors. Strengthening industry linkages to ensure demand-driven skilling and better placement outcomes forms another core pillar of the initiative.
In addition, the scheme places strong emphasis on enhancing the capacity of NSTIs for advanced training of trainers, ensuring that instructors are equipped with modern pedagogical and technical competencies.
Two-Component Structure for Nationwide Impact
The PM-SETU scheme comprises two major components. Component I focuses on the upgradation of 1,000 government ITIs through a Hub and Spoke model. This includes 200 Hub ITIs and 800 Spoke ITIs across States and Union Territories.
Upgradation under this component will include smart classrooms, modern laboratories, digital learning content, and the introduction of new courses aligned with local and national industry requirements.
Component II focuses on capacity augmentation of five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. These institutions will host sector-specific National Centres of Excellence, with an emphasis on advanced trainer education and global partnerships.
Industry-Led Governance and Entrepreneurial Support
A defining feature of PM-SETU is its industry-led governance framework. Special Purpose Vehicles (SPVs), led by industry stakeholders, will play a central role in overseeing ITI upgradation and programme implementation.
These SPVs will be empowered to propose curriculum redesigns, innovative training delivery models, infrastructure upgrades, and enhanced industry exposure. The approach ensures that skilling interventions remain aligned with real-world workforce demands.
While the scheme primarily focuses on wage employment, it also indirectly supports entrepreneurship by enabling learners to access career guidance, placement services, and self-employment facilitation through strengthened institutional systems.
Role of States and Oversight Mechanism
The selection of ITIs under PM-SETU will be led by respective State and Union Territory governments in consultation with industry partners. States are required to submit detailed proposals for upgradation aligned with local industrial potential.
The Ministry of Skill Development and Entrepreneurship (MSDE) has constituted a National Steering Committee chaired by the Secretary, MSDE, to provide overall vision, policy direction, and operational oversight.
At the state level, 25 States and Union Territories have already constituted State Steering Committees led by their Chief Secretaries. Ten States and UTs have floated proposals inviting industry participation.