PM SETU Scheme

• 12 Mar 2026

Source: ET 

The Ministry of Skill Development and Entrepreneurship has constituted a National Steering Committee (NSC) as the apex body to guide the Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM SETU) Scheme, which aims to strengthen skill development by upgrading Industrial Training Institutes (ITIs) and improving employability outcomes. 

• About: PM-SETU is a vocational education and training upgradation scheme approved by the Union Cabinet in 2025 with a budget of Rs 60,000 crore to align skill training with modern industry needs. 
  • The scheme marks a shift from government-driven training to industry-led skilling, where companies play a key role in designing curricula, training methods, and infrastructure. 
• Hub-and-Spoke ITI Upgradation: Under the hub-and-spoke model, 200 “Hub” ITIs will act as central institutes with advanced infrastructure, and each Hub will mentor and support about four nearby “Spoke” ITIs by sharing modern equipment, digital learning resources, and specialized training facilities. 
  • The scheme will also strengthen five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, turning them into global Centres of Excellence. 
• Special Purpose Vehicle (SPV) Governance: Each upgraded ITI will be managed by an industry-government partnership through an SPV, where industry partners hold 51% ownership and the government 49%. 
  • Industry partners can receive up to 83% government funding for infrastructure and training improvements. 
• Industry Participation: The Ministry of Skill Development and Entrepreneurship has invited Anchor Industry Partners (AIPs) through an Expression of Interest (EOI) to collaborate in upgrading training institutes. 
• Modern Training Ecosystem: SPVs can propose curriculum redesign, improved training delivery models, infrastructure upgrades, and industry exposure for trainees. 
  • The Directorate General of Training has introduced 31 new-age courses under the Craftsmen Training Scheme (CTS) to address emerging sector demands. 
    • Training will target sectors like advanced manufacturing, electronics, mobility, and logistics.

Read more: National Scheme for Upgradation of ITIs