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PM-SETU Completes One Year: 850 ITIs Identified for Upgrade

PM-SETU, the ₹60,000 crore scheme to rebuild 1,000 government ITIs, completes a year on 4 October 2026 with 850 institutes identified and 14 clusters cleared.

By Published · 3 min read
PM-SETU Completes One Year: 850 ITIs Identified for Upgrade

Why in News

A PIB backgrounder issued on 3 October 2026 reviewed the first year of PM-SETU ahead of its anniversary on 4 October 2026, setting out the ₹60,000 crore outlay, the identification of 850 ITIs and approval of 14 ITI clusters worth ₹3,446 crore.

PM-SETU, short for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, completes one year on 4 October 2026. The scheme was launched on 4 October 2025 to turn government Industrial Training Institutes into modern, industry-aligned centres, with industry sitting inside the governance of each cluster rather than outside it.

The money and the design

The scheme carries an outlay of ₹60,000 crore. Of this the Centre puts in ₹30,000 crore, the States ₹20,000 crore and industry ₹10,000 crore. Component I covers 1,000 government ITIs, made up of 200 Hub ITIs and 800 Spoke ITIs; on average four spokes hang off each hub and share its advanced workshops, digital learning systems and incubation space. Hubs also house innovation centres, training-of-trainers facilities, production units and placement services. Component II adds capacity at five National Skill Training Institutes — Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana — through sector-specific National Centres of Excellence.

Where it stands after a year

ITIs identified850, of which 172 are Hubs and 678 are Spokes
States and UTs with clusters and budget heads36
States and UTs with Steering Committees35
States and UTs inviting industry26
Strategic Investment Plans approved14 clusters worth ₹3,446 crore
New-age courses added32 under the Craftsmen Training Scheme

The National Steering Committee, chaired by the Secretary of the Ministry of Skill Development and Entrepreneurship, has cleared the move from a pilot to a nationwide rollout across all 200 identified clusters. The 14 approved Strategic Investment Plans are spread over eight States and one Union Territory, and the anchor partners behind them range from steel and pharmaceutical firms to defence electronics, healthcare and infrastructure companies.

Industry in the driving seat

Each upgraded cluster is run through a special purpose vehicle in which the Anchor Industry Partner holds 51% and the Centre and the State hold 24.5% each. A firm that wants in must file a Strategic Investment Plan first. The vehicle then shapes the curriculum, the way training is delivered, the infrastructure and the exposure students get on factory floors.

Courses and foreign partners

The Directorate General of Training has introduced 32 new-age courses under the Craftsmen Training Scheme, covering artificial intelligence, cyber security, additive manufacturing, electric vehicles, semiconductor technology, robotics, green hydrogen, drones, the internet of things, solar energy, 5G and software testing. For advanced skilling, India has signed memoranda with Singapore for NSTI Chennai, France for NSTI Kanpur and Australia for NSTI Bhubaneswar, and exchanged a joint declaration of intent with Germany for NSTI Hyderabad.

The base the scheme builds on

ITIs, government and private together, have grown from 9,776 in 2014 to 13,888 in 2026, a rise of 42%. Enrolment has gone from 9.51 lakh in the 2014-15 session to 14.70 lakh in 2025-26, up 54%. Training under the Craftsmen Training Scheme runs from six months to two years depending on the trade, and ITIs remain under the administrative and financial control of State governments, while the Directorate General of Training frames policy, curriculum, affiliation norms, instructor training and trade testing.

Important Facts

SchemePM-SETU, Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs
Launched4 October 2025; completes one year on 4 October 2026
MinistrySkill Development and Entrepreneurship, through the Directorate General of Training
Outlay₹60,000 crore: Centre ₹30,000 crore, States ₹20,000 crore, industry ₹10,000 crore
Component I1,000 government ITIs as 200 Hub ITIs and 800 Spoke ITIs
Component IIFive NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana
Year-one progress850 ITIs identified, 172 Hubs and 678 Spokes
Investment plans cleared14 clusters worth ₹3,446 crore in eight States and one UT
SPV shareholdingAnchor Industry Partner 51%, Centre 24.5%, State 24.5%
New-age courses32 under the Craftsmen Training Scheme
Foreign partnersSingapore for Chennai, France for Kanpur, Australia for Bhubaneswar, Germany for Hyderabad
ITI growth9,776 in 2014 to 13,888 in 2026; enrolment 9.51 lakh to 14.70 lakh

Exam Point of View

Remember the full form of PM-SETU, the launch date (4 October 2025), the outlay of ₹60,000 crore and its three-way split, Component I (1,000 ITIs as 200 Hubs and 800 Spokes), Component II (five NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana), the SPV shareholding of 51% and 24.5% each, the 850 ITIs identified and the 14 clusters worth ₹3,446 crore.

Practice Questions

Q1.Government SchemesEasy

What is the total outlay of the PM-SETU scheme for upgrading government ITIs?

  1. A.₹40,000 crore
  2. B.₹50,000 crore
  3. C.₹60,000 crore
  4. D.₹75,000 crore
Show answer

Correct answer: C. ₹60,000 crore

Explanation

The correct answer is ₹60,000 crore. The scheme is funded three ways: the Centre contributes ₹30,000 crore, the State governments ₹20,000 crore and industry ₹10,000 crore, which together make up the full outlay. This money pays for the Hub-and-Spoke upgradation of government Industrial Training Institutes under Component I and the strengthening of the five National Skill Training Institutes under Component II. Options A, B and D name figures that do not match any part of the scheme's financing pattern; none of ₹40,000 crore, ₹50,000 crore or ₹75,000 crore corresponds to the Centre's share, the States' share, industry's share or the total. Note also the separate figure of ₹3,446 crore, which is the investment covered by the 14 Strategic Investment Plans approved in the first year, not the outlay of the scheme itself.

Q2.Government SchemesMedium

Under Component I of PM-SETU, how many of the 1,000 government ITIs are Hub ITIs?

  1. A.100
  2. B.200
  3. C.400
  4. D.800
Show answer

Correct answer: B. 200

Explanation

The correct answer is 200. Component I covers a thousand government Industrial Training Institutes, split into 200 Hub ITIs and 800 Spoke ITIs, so option D names the number of spokes rather than hubs. On average four spokes are attached to each hub, which is why the hub count is a fifth of the total; the arrangement lets spoke institutes share the hub's modern laboratories, digital content, incubation facilities and placement services. Options A and C do not match the design: a hundred hubs would leave nine spokes to a hub, and four hundred would leave fewer than two, neither of which fits the model described. The same figure returns in the rollout decision, where the National Steering Committee approved implementation across all 200 identified ITI clusters, one cluster for each hub.

Q3.Government SchemesMedium

In the special purpose vehicle formed for an upgraded ITI cluster under PM-SETU, what share does the Anchor Industry Partner hold?

  1. A.24.5%
  2. B.26%
  3. C.49%
  4. D.51%
Show answer

Correct answer: D. 51%

Explanation

The correct answer is 51%. PM-SETU puts industry in charge of cluster governance: the anchor industry partner takes a majority holding of fifty-one per cent in the special purpose vehicle, while the Union government and the State government hold the rest in equal parts. Option A names the share of the Centre and of the State separately, each of which is 24.5%, and together they come to just under half. Options B and C do not appear in the shareholding pattern at all. A company that wishes to become an anchor partner must first submit a Strategic Investment Plan, and once the vehicle is formed it leads cluster development and operations, proposing changes to curriculum, training delivery, infrastructure and industry exposure that suit the industries of that region.

Frequently Asked Questions

What does PM-SETU stand for and when was it launched?

Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs. It was launched on 4 October 2025 and completes one year on 4 October 2026, with an outlay of ₹60,000 crore.

How are ITIs organised under PM-SETU?

Component I covers 1,000 government ITIs as 200 Hub ITIs and 800 Spoke ITIs, with about four spokes to each hub sharing advanced infrastructure, modern trades and digital learning.

Who controls the special purpose vehicle of an ITI cluster?

The Anchor Industry Partner holds 51%, and the Centre and the State government hold 24.5% each. The vehicle decides curriculum, training delivery, infrastructure and industry exposure.

Sources