PM-SETU Scheme (Prime Minister’s Scheme for Skill and Employment Transformation through Upgraded ITIs)
- Background: Following the expansion of the ITI (Industrial Training Institute) modernization scheme in the states of Odisha, Gujarat, and Telangana, approval has been granted for an investment of ₹1,237.58 crore under the PM-SETU scheme.
About the PM-SETU Scheme
- PM-SETU is a centrally funded scheme aimed at enhancing India’s vocational education and skill training system.
- The scheme focuses on upgrading 1,000 government Industrial Training Institutes (ITIs) into modern, industry-oriented training centers.
- Its objective is to align ITIs with industrial requirements and employment opportunities.
Implementation Model
- The scheme follows a ‘Hub-and-Spoke’ model:
- 200 ‘Hub’ ITIs will function as primary centers.
- 800 ‘Spoke’ ITIs will be linked to these centers.
- ‘Hub’ ITIs will feature:
- Advanced infrastructure.
- Innovation and incubation centers.
- Manufacturing units.
- Training facilities for trainers.
- Placement support services.
- ‘Spoke’ ITIs will help expand training facilities and reach a larger number of students.
Financial Assistance
- Total Budget: ₹60,000 crore.
- Duration: 5 years.
- Nodal Ministry: Ministry of Skill Development and Entrepreneurship. Key features of the PM-SETU scheme:
- Introducing new courses based on industry requirements and updating existing courses with industry support.
- stablishing Special Purpose Vehicles (SPVs) in collaboration with reliable ‘Anchor Industry Partners’ to manage ITI clusters and ensure quality training outcomes.
- Creating opportunities for:
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- Long-term diploma courses.
- Short-term skill training courses.
- Training programs for executives.
- Upgrading 5 National Skill Training Institutes (NSTIs) into ‘Centres of Excellence‘ through international partnerships:
- Bhubaneswar, Odisha
- Chennai, Tamil Nadu
- Hyderabad, Telangana
- Kanpur, Uttar Pradesh
- Ludhiana, Punjab
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- The scheme receives international financial support through the joint funding of the following organizations:
- World Bank
- Asian Development Bank (ADB).
