Nearly a year after the cabinet approved the Rs 60,000-crore scheme to upgrade 1,000 governmen-run Industrial Training Institutes (ITIs), states have identified 822 institutes for upgradation with the remaining 178 yet to be brought under the programme.
According to a reply by the ministry of skill development and entrepreneurship in the Rajya Sabha, states and union territories (UTs) have so far identified 166 hub ITIs and 656 spoke ITIs, taking the total to 822 institutions.
The latest status report also shows that while the institutional framework for the scheme has largely been put in place, implementation is still at an early stage. Of the 36 states and UTs, 34 have constituted State Steering Committees to oversee the scheme, while just 23 have floated proposals inviting industry participation for the identified clusters.
The central government has this far approved only 6 strategic investment plans (SIPs) submitted by industry partners under the programme. These include three clusters in Telangana and one each in Andhra Pradesh, Gujarat and Odisha.
Implementation Progress
Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) was approved by the cabinet in May 2025. The scheme was official launched by the prime minister in October 2025 followed by its nationwide rollout in July 2026. It aims to overhaul India’s vocational training ecosystem by upgrading ITIs with smart classrooms, modern labs, digital learning infrastructure and industry-aligned courses. The scheme has envisaged upgrading 200 hub ITIs and 800 spoke ITIs through industry-led special purpose vehicles, besides strengthening five National Skill Training Institutes (NSTIs).
The ministry said the selection of ITIs is being undertaken by state governments in consultation with industry so that the upgraded institutes reflect local industrial demand and emerging skill requirements. Industry partners are expected to play a key role in redesigning curriculum, modernising infrastructure, improving training delivery and facilitating placements.
“The scheme also provides for periodic monitoring, performance reviews, and third-party impact assessment to ensure effective implementation and achievement of intended outcomes,” the ministry said.
To support the rollout, the ministry has organised regional consultations with industry and disbursed money to states for industry outreach, workshops and stakeholder consultations.
The parliamentary reply also said the Directorate General of Training (DGT) has already introduced 32 new-age trades, including artificial intelligence (AI), semiconductor technology, electric vehicles, drones, industrial robotics, green hydrogen and 5G network technology, which can be operationalised in upgraded ITIs as industry partners come on board.
Earlier this month, the ministry approved SIPs worth Rs 1,238 crore for select ITI clusters, marking the first set of projects cleared under the nationwide rollout of the scheme.