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[pib] PM-SETU Scheme

Why in the News?

PM has launched the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) Scheme to modernize India’s Industrial Training Institutes (ITIs) into industry-aligned centers of excellence.

About the PM-SETU Scheme:

  • Overview: Centrally Sponsored Scheme under the Ministry of Skill Development & Entrepreneurship (MSDE).
  • Objective: Upgrade 1,000 Government ITIs into modern, industry-linked institutions that address evolving global skill demands.
  • Financing: Supported by the World Bank and Asian Development Bank (ADB); co-funded by Centre, States, and Industry.
  • Implementation Model: Operates on a Hub-and-Spoke structure
    • 200 Hub ITIs act as Centres of Excellence.
    • 800 Spoke ITIs extend outreach and training access across districts.
  • Target: Skill 20 lakh youth over five years through new and revamped programs.

Key Features:

  • Industry Partnership: Each cluster managed by a Special Purpose Vehicle (SPV) with an Anchor Industry Partner, ensuring outcome-based, employment-linked training.
  • Curriculum Reform: New demand-driven, industry-aligned courses and flexible pathways — diplomas, short-term modules, and executive programs.
  • Infrastructure Modernization:
    • Advanced machinery, incubation and innovation centres, and production units in hub ITIs.
    • Integration of placement services and trainer-training facilities.
  • Centres of Excellence (NCOEs): Upgradation of 5 National Skill Training Institutes (NSTIs) at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana into global-standard NCOEs with international collaboration.
  • Pilot Phase: Begins with Patna and Darbhanga ITIs (Bihar) as the first upgraded hubs.
  • Youth Empowerment Focus: Links skilling with innovation, startups, and MSMEs to create self-employment opportunities and strengthen India’s human-capital base.

Also in News: National Scheme for ITI Upgradation & NCOEs

  • Cabinet-approved (May 2025) companion initiative with an outlay of ₹60,000 crore:
    • Central Share: ₹30,000 cr;  State: ₹20,000 cr;  Industry: ₹10,000 cr.
    • 50 % of the Central share co-financed by World Bank and ADB.
  • Purpose: Upgrade 1,000 ITIs and establish 5 NCOEs as Government-owned, Industry-managed skill institutions.
  • Features:
    • Need-based investment flexibility for each ITI.
    • Training-of-Trainers (ToT) infrastructure upgrade and training for 50,000 trainers.
    • Enhanced alignment of local workforce supply with MSME and industrial demand.
    • Introduction of an industry-led SPV model for better accountability and course relevance.

 

[UPSC 2018] With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:

1. It is the flagship scheme of the Ministry of Labour and Employment.

2. It, among other things, will also impart training in soft skills, entrepreneurship, financial and digital literacy.

3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.

Which of the statements given above is/are correct?

Options: (a) 1 and 3 only (b) 2 only (c) 2 and 3 only* (d) 1, 2 and 3

 

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