The programme aims to harness the energy and innovative ideas of the youth pursuing graduation and post-graduation of India, which will be …
Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM‑SETU) : Component I
Ministry: Ministry Of Skill Development And Entrepreneurship
The scheme aims to upgrade ITIs into industry-led institutions. Through this scheme, infrastructure, training, and employment-oriented benefits are provided to trainees.
About This Scheme
Benefits
₹60000.0 Cr · annual
The total outlay of the scheme is ₹60,000/- crore over five years. This cost is shared among
the Central Government, State Governments, and Industry, as shown below:
| Particulars | Total (₹ Crore) | Central (₹ Crore) | State (₹ Crore) | Industry (₹ Crore) |
| Total Scheme Outlay (5 years) | 60,000/- | 30,000/- | 20,000/- | 10,000/- |
This corresponds to a funding pattern of approximately 50% Central: 33% State: 17% Industry. Each Hub-and-Spoke cluster will maintain this cost-sharing ratio in its funding plan as indicated in the Strategic Investment Plan (SIP).
Indicative Investment per ITI and Cluster:- Under the Scheme, support will be provided for the upgradation of Hub ITIs with an outlay not exceeding ₹81 crore (over five years) and for Spoke ITIs with an outlay not exceeding ₹40 crore.
- In cases where the overall cost of upgradation exceeds the prescribed outlay, the contribution of the Central Government shall be capped at 50% of the above ceiling amounts and limited strictly to capital expenditure (exceptions apply for North-Eastern and Hilly States and Union Territories without legislature).
- One Hub + Four Spokes (cluster total): ₹241 crore per cluster
- Annual cost for one cluster (5-year average): ~₹48.2 crore per year
- Upgradation of 200 Hub ITIs: ₹20,220 crore
- Upgradation of 800 Spoke ITIs: ₹36,680 crore
- Subtotal – ITI Upgradation (Component I): ₹56,900 crore
- ₹1,600 crore is earmarked for governance, project management, and capacity-building activities over five years, including:
- Capacity building of central and state agencies: ₹200 crore
- Office expenditure: ₹100 crore
- IT and digital infrastructure (including LOMS): ₹600 crore
- Technical assistance: ₹100 crore
- Media, awareness, and advocacy: ₹100 crore
- Evaluations, studies, and research: ₹100 crore
- Project Management Unit (PMU) support: ₹400 crore
- Each approved cluster SPV will operate an escrow bank account to collect funds from all sources. All contributions – Central, State, and Industry – are deposited into this escrow account, and funds become available only after all three parties have contributed their respective shares.
- Initial Advance (Year 1):
- An advance of up to 10% of the total project outlay shall be released upon approval of the Strategic Investment Plan (SIP).
- Annual Instalments (Years 2–5):
- The remaining funds are disbursed in annual instalments in two tranches of 50% each, subject to:
- Utilisation of at least 75% of previous funds
- Approval of Annual Operational Plan (AOP)
- Achievement of at least 80% of Key Performance Indicators (KPIs)
Eligibility
- •
> For Government ITIs:
- •
The ITIs should be Government Industrial Training Institutes.
- •
The selection of ITIs shall be carried out by the respective State or Union Territory.
- •
The selection should be based on factors such as emerging skill requirements, local industry demand, and potential for industry participation.
- •
> For Anchor Industry Partner (AIP) / Industry Partner:
- •
The applicant should be a credible company or manufacturer with established operations in India.
- •
The applicant may be an industry association, consortium, industry-led foundation, or an academic institution promoted by industry.
- •
The applicant should have the capability to participate in governance, curriculum design, and training delivery.
- •
> Minimum Eligibility Conditions (As Defined by State/UT):
- •
The applicant should meet the minimum eligibility criteria such as turnover, number of employees, and sectoral experience, as defined by the State or Union Territory.
- •
The applicant should demonstrate the ability to ensure meaningful industry participation.
- •
The applicant should not be a small or non-serious operator.
Required Documents
- ✦Expression of Interest (EOI) Document
- ✦Request for Proposal (RFP) Response
- ✦Strategic Investment Plan (SIP) as per the prescribed template
- ✦Company Registration/Incorporation Documents (for industry partner)
- ✦Financial Statements showing turnover (as per State criteria)
- ✦Number of Employees Documentation
- ✦Debarment Declaration Certificate (declaring not debarred by any government agency)
- ✦Commitment Letters from State Government for staffing, scheme funding, and regulatory reforms
- ✦Letters of Collaboration from partner industries (if applicable)
- ✦Baseline Characteristics Document of Hub and Spoke ITIs (Template 1)
- ✦Budget Allocation Documents of Last Three Financial Years (Template 2)
- ✦Five-Year Investment Plan Budget (Template 3)
- ✦Performance Indicators Documentation (Template 4)
- ✦Implementation Gantt Chart (Template 5)
- ✦MoUs with Industries for Employment, Apprenticeships, and Funding (if applicable)
- ✦HR Plan Document including Managerial Capacity Details
- ✦Credentials of Proposed SPV CEO and Management
- ✦Shareholders' Agreement (SHA)
- ✦License Agreement (LA)
- ✦Performance Security (Bank Guarantee from Scheduled Bank)
- ✦Annual Operational Plan (AOP)
- ✦Asset Register
- ✦Utilization Certificates Certified by Chartered Accountant
✦ Required ◦ Optional
How to Apply
Step 1: The State or Union Territory identifies Government Industrial Training Institutes (ITIs) for upgradation and prepares the Request for Proposal (RFP) along with defined eligibility criteria.
Step 2: The State or Union Territory issues the RFP to invite proposals from eligible Anchor Industry Partners (AIP) or industry partners.
Step 3: The applicant submits the proposal along with the Strategic Investment Plan (SIP), including details of infrastructure, courses, human resources, financials, and implementation strategy.
Step 4: The submitted proposals are evaluated through pre-qualification, technical assessment of the SIP, and financial evaluation.
Step 5: The State Government selects suitable proposals and forwards them to the National Steering Committee (NSC) for final approval.
Step 6: Upon approval, a Special Purpose Vehicle (SPV) is formed for each cluster, and agreements such as the Shareholder Agreement (SHA) and License Agreement (LA) are executed.
Step 7: An escrow account is established for the SPV, and contributions from the Central Government, State Government, and Industry are deposited into it.
Step 8: The SPV prepares the Annual Operational Plan (AOP) aligned with the approved Strategic Investment Plan (SIP).
Step 9: Funds are released in stages, starting with an initial advance and followed by instalments based on utilisation, performance, and approval of the AOP.
Step 10: The SPV undertakes the implementation of ITI upgradation, including infrastructure development, course delivery, and provision of training and student services.
Quick Info
- Level
- Central Government
- Max benefit
- ₹60000.0 Cr
Categories
Data Sources
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 6 days ago
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 14 days ago
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 14 days ago
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 22 days ago
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 1 months ago
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 1 months ago
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 1 months ago
- https://www.myscheme.gov.in/schemes/pmsetuiti1 ↗Accessed 1 months ago
