PM-SETU Scheme

Context

Ministry of Skill Development and Entrepreneurship (MSDE), in collaboration with the Government of Uttar Pradesh, organised the PM-SETU Industry Conclave in Lucknow to promote modern, industry-aligned and employment-oriented Industrial Training Institutes (ITIs).

 About PM-SETU

1. PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) is a Centrally Sponsored Scheme to modernise India’s vocational training ecosystem by upgrading 1,000 government ITIs with industry-relevant training.
2. Nodal Ministry: Ministry of Skill Development and Entrepreneurship (MSDE).
3. Outlay: ₹60,000 crore over 5 years.

 Key Features

1. Hub-and-Spoke Model: 200 Hub ITIs will support 800 Spoke ITIs through advanced infrastructure, innovation/incubation centres, production units, trainer training and placement services.
2. Industry-aligned courses: Existing courses will be upgraded and new courses introduced based on labour-market demand, especially in emerging sectors.
3. Industry participation: Special Purpose Vehicles (SPVs) with Anchor Industry Partners will manage ITI clusters and promote outcome-based training, including diploma, short-term and executive programmes.
4. National Skill Training Institutes (NSTIs) strengthening: Five NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana will be developed as Centres of Excellence with global partnerships.
5. Global support: Co-financing is provided by the World Bank and Asian Development Bank (ADB).

 Significance

1. Better Training: Improves the quality and industry relevance of vocational education.
2. Skill–Job Match: Reduces the skill gap by aligning training with industry needs.
3. Employment: Promotes demand-driven skilling and better job opportunities.
4. Institutional Capacity: Strengthens ITIs and NSTIs through modern infrastructure and training.
5. Emerging Sectors: Builds a skilled workforce for new and growing industries.

FAQs

Q1. What is PM-SETU?
Ans. PM-SETU is a Centrally Sponsored Scheme for upgrading government ITIs and strengthening India’s vocational training ecosystem.

Q2. What is the hub-and-spoke model under PM-SETU?
Ans. It involves 200 Hub ITIs and 800 Spoke ITIs. Hubs provide advanced infrastructure and specialised services, while spokes extend training access.

Q3. What is the role of SPVs under PM-SETU?
Ans. Special Purpose Vehicles (SPVs) involving industry partners will help manage ITI clusters and promote outcome-based training.

Q4. Which institutions are providing international co-financing?
Ans. The World Bank and Asian Development Bank (ADB) are providing global co-financing support to the initiative.