PM-SETU Scheme

Why in News?

The Ministry of Skill Development and Entrepreneurship has recently invited industry leaders to participate in the PM-SETU scheme, marking a shift towards an industry-led model of vocational training.

• PM-SETU - Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs.
• It is a centrally sponsored initiative launched on October 4, 2025.
• Aim - To modernize India's vocational training system and align it with global industry requirements.
• Nodal Ministry - Ministry of Skill Development and Entrepreneurship (MSDE).
• Key Objectives
  • Upgradation of ITIs - The scheme aims to transform 1,000 Government Industrial Training Institutes (ITIs) into modern institutions.
  • Hub-and-Spoke Model - A cluster approach includes 200 Hub ITIs with advanced facilities and 800 Spoke ITIs connected to provide wider access to training.
  • Global Centres of Excellence - 5 National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana will be upgraded to international standards.
  • Vocational Skill Labs - 1,200 labs will be established in Navodaya Vidyalayas and Eklavya Model Residential Schools to introduce vocational training early.
• Unique Governance Model
  • Industry-Led Management - The scheme uses a "Government-owned, Industry-managed" model.
  • Special Purpose Vehicles (SPV) - Each ITI cluster is managed by an SPV where Anchor Industry Partners (AIPs) hold a 51% stake, and the government holds 49%.
  • Co-funding - Industry partners can receive up to 83% in government co-funding.
• Implementation Status - First Phase - Focus areas include ITIs in Patna and Darbhanga.
• Industry Engagement - Several states have issued Expressions of Interest (EOI) for industry partners.
• Financing - The scheme is co-financed by the World Bank and the Asian Development Bank.

Reference

PIB | PM-SETU Scheme