PM-SETU is a major centrally sponsored scheme launched to transform 1,000 Government Industrial Training Institutes (ITIs) across India into modern, industry-aligned training centers. The initiative is backed by an investment of ₹60,000 crore and seeks to bridge the gap between vocational training and evolving industry requirements, fostering a future-ready, employable workforce in line with the National Education Policy (NEP) 2020. The PM-SETU scheme was approved by the Union Cabinet in May 2025. It was officially launched on October 4, 2025 for a period of five years. Core Objectives Improve the quality of training delivery in ITIs and National Skill Training Institutes (NSTIs). Modernize infrastructure (smart classrooms, modern labs) to meet global industry standards. Introduce demand-driven, industry-aligned long-term and short-term courses in emerging sectors. Strengthen industry-academia linkage to ensure outcome-based training. Enhance the capacity of NSTIs specifically for "Training of Trainers." Scheme components The scheme comprises of two components: Component I – Upgradation of 1,000 Government ITIs (200 Hub ITIs and 800 Spoke ITIs) in a Hub and Spoke model wherein upgradation includes smart classrooms, modern labs, digital content, and new courses aligned to industry needs. Component II – Capacity Augmentation of five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, including setting-up sector-specific National Centres of Excellence for skilling, with focus on advanced training of trainers with global partnership. Key Features Hub-and-Spoke Model: The scheme functions through 200 "Hub" ITIs (central centers) linked to 800 "Spoke" ITIs (outreach centers). Hubs are equipped with innovation/incubation centers and dedicated placement services. Industry-Led Governance: A shift from government-managed to an industry-managed model. Each cluster is governed by a Special Purpose Vehicle (SPV) where industry partners hold 51% ownership to ensure curriculum relevance. Centres of Excellence: Five specific NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana) are being upgraded into global Centres of Excellence. Collaborative Financing: The project is supported by co-financing from the World Bank and the Asian Development Bank (ADB). Scheme guidelines PM SETU Guidelines Component I Upgradation of ITIs. PM SETU Guidelines Component II Capacity Augmentation of NSTI FAQs on the scheme 1. What is the primary objective of PM-SETU? A: To modernize 1,000 government ITIs into industry-aligned Centres of Excellence, ensuring vocational training meets the demands of the modern job market. 2.How does the "Hub-and-Spoke" model work? A: 200 "Hub" ITIs act as centralized, high-tech training centers supporting a network of "Spoke" ITIs, extending high-quality training and industry exposure to more students. 3. Who manages these upgraded ITIs? A: They follow an "Industry-Led" model governed by a Special Purpose Vehicle (SPV), where industry partners hold 51% ownership. 4.: Will students get better placement opportunities? A: Yes. By partnering with major industries for curriculum design, students gain skills directly required by the workforce, significantly improving employability. 5. Which Ministry is implementing this scheme? A: The Ministry of Skill Development and Entrepreneurship (MSDE), Government of India. 6. Does the scheme offer training for teachers? A: Yes. NSTIs are being upgraded to serve as hubs for the "Training of Trainers," ensuring instructors are proficient in the latest technologies. Source : Directorate General of Training