The Centre has approved five major skill development projects worth Rs 1,194.92 crore under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, targeting Industrial Training Institute (ITI) clusters in Maharashtra, Odisha and Jammu and Kashmir.
The approvals were granted by the National Steering Committee (NSC) during its sixth meeting on Friday. With the latest decisions, the cumulative investment sanctioned under PM-SETU has reached Rs 3,687 crore, marking another step towards upgrading government ITIs and aligning vocational training with the changing requirements of industry.
The projects will focus on modernising training infrastructure, introducing industry-relevant courses, improving the capabilities of instructors and strengthening partnerships between educational institutions and employers.
The meeting was chaired by Debashree Mukherjee, Secretary of the Ministry of Skill Development and Entrepreneurship (MSDE). The Committee also reviewed the progress of the scheme and discussed measures to improve training quality and employment outcomes.
Senior officials from the Ministry, including Additional Secretary Niranjan Kumar Sudhanshu and Joint Secretary Manasi Sahay Thakur, attended the meeting along with representatives of the Directorate General of Training, State Governments, Union Territories, industry partners, multilateral development banks and other stakeholders.
Five ITI clusters receive investment approval
The five approved Strategic Investment Plans cover clusters in Cuttack, Pune, Chhatrapati Sambhajinagar, Jammu and Srinagar. Each project will be implemented in partnership with an industry organisation.
The approved investments are as follows:
1. Cuttack, Odisha: Rs 240.50 crore in partnership with Tata Steel Foundation.
2. Pune, Maharashtra: Rs 241 crore in partnership with BVG India Limited, in consortium with BVG Foundation.
3. Chhatrapati Sambhajinagar, Maharashtra: Rs 238.01 crore in partnership with Belrise Industries Limited.
4. Jammu: Rs 240 crore in partnership with Eagle Infra India Limited.
5. Srinagar: Rs 235.41 crore in partnership with Inderdeep Infra India Limited.
The five projects are intended to strengthen vocational training infrastructure and create closer links between ITIs and industry. The partnerships are expected to help institutions identify emerging skill requirements and incorporate them into training programmes.
The proposed investments will support the modernisation of workshops and training facilities, the introduction of industry-aligned courses, instructor development and greater participation by employers in vocational education.
The objective is to make ITIs more responsive to the needs of the labour market and improve the prospects of young people seeking technical employment.
Hub and spoke model to connect ITIs
Each approved cluster will operate through a hub-and-spoke model, with one lead government ITI supported by four associated ITIs.
Under this structure, the lead institution is expected to anchor the cluster’s development, while the associated institutes will benefit from coordinated training initiatives and industry engagement.
The model is designed to strengthen collaboration between institutions rather than upgrade individual ITIs in isolation. It can also provide a framework for sharing training resources, improving instructional practices and aligning course delivery with industry requirements.
The focus on industry partnerships is particularly important for vocational education, where the relevance of courses and the availability of practical training can influence graduates’ employment prospects.
The projects will seek to improve the quality of technical education by combining infrastructure upgrades with curriculum development and stronger engagement with employers.
The scheme’s emphasis on industry alignment is intended to help trainees acquire skills that are relevant to actual workplace requirements. The extent to which this translates into better employment outcomes will depend on implementation, the quality of training and the availability of suitable jobs.
Centre emphasises training quality and industry participation
Addressing the meeting, MSDE Secretary Debashree Mukherjee said the approvals would help strengthen ITIs, improve the quality of training and increase industry participation in skill development.
She encouraged the approved clusters to work towards ISO certification and include at least one WorldSkills-aligned trade or competency area in their Approved Implementation Plans.
ISO certification can provide a framework for improving institutional processes and maintaining standards, while WorldSkills-aligned training can help institutions benchmark selected competencies against recognised skill standards.
The emphasis on these measures reflects the broader objective of developing ITIs that combine technical training with quality assurance and contemporary industry practices.
Mukherjee also highlighted the progress made by Jammu and Kashmir in strengthening skill development opportunities for young people.
The inclusion of two clusters in Jammu and Srinagar gives the Union Territory a significant share of the latest approvals. Together, the projects are expected to support the modernisation of local vocational training facilities and improve access to industry-linked technical education.
Training of trainers remains a key priority
The National Steering Committee also reviewed progress under Component II of PM-SETU, which focuses on Training of Trainers (ToT).
The component aims to equip ITI instructors with updated technical knowledge and modern teaching competencies. This is an important part of vocational education reform because upgraded equipment and revised courses need to be supported by instructors who can deliver practical, industry-relevant training.
According to the Ministry’s update, 3,744 trainers had been trained under the programme as of October 2026 through National Skill Training Institutes (NSTIs).
The initiative seeks to strengthen the ability of instructors to teach contemporary technical skills and respond to changing workplace requirements.
Trainer development is particularly relevant as industries adopt new technologies and production methods. Instructors need to be familiar with current equipment, technical standards and practical applications to prepare trainees for the workplace.
The ToT component complements the infrastructure investments approved for the five clusters. While the Strategic Investment Plans focus on institutional upgrades and industry partnerships, instructor training addresses the human resource capabilities required to deliver effective vocational education.
PM-SETU targets modern, industry-ready vocational institutions
The latest approvals form part of the Centre’s wider effort to strengthen India’s vocational education system and improve the employability of young people.
Industrial Training Institutes play an important role in providing technical and trade-based training for people seeking employment across manufacturing, services, infrastructure and other sectors. However, the relevance of their courses depends on the quality of facilities, the skills of instructors and the extent to which training reflects industry requirements.
Through PM-SETU, the government aims to modernise ITIs and strengthen their engagement with employers. The cluster-based approach is intended to bring multiple institutions together under a coordinated development plan, supported by industry partners.
The newly approved investments will cover five clusters across three states and Union Territories, adding to the Rs 3,687 crore sanctioned cumulatively under the scheme.
The focus will be on improving infrastructure, introducing contemporary training programmes, strengthening instructor capabilities and increasing industry participation.
The impact of the investments will ultimately depend on the timely implementation of approved plans, the quality of training delivered and the ability of participating institutions to connect trainees with employment opportunities.
With the latest approvals and the ongoing Training of Trainers programme, PM-SETU is seeking to establish a stronger link between vocational education and the skills required by India’s changing economy.
