The government has proposed upgrading Industrial Training Institutes (ITIs) and National Skill Training Institutes (NSTIs) under the Pradhan Mantri Skilling and Employability through Upgraded ITIs (PM-SETU) scheme. The plan will be carried out through industry-led Special Purpose Vehicles (SPVs). To select industry partners, companies must submit a Strategic Investment Plan (SIP) in response to Requests for Proposals (RFPs). So far, 12 States and Union Territories have issued RFPs to invite industry participation. Funds for upgrading ITIs or setting up National Centres of Excellence (NCoEs) will only be released after SIP approval.
As per information shared in the Lok Sabha by Jayant Chaudhary, Minister of State (Independent Charge), Ministry of Skill Development and Entrepreneurship, the selection of ITIs under PM-SETU is led by State or UT governments in consultation with industry. This ensures that training aligns with emerging skill needs and local industrial potential. Financial assistance will be given to ITI clusters based on industry responses. Andhra Pradesh has already identified five government ITIs for the pilot phase. These include one ‘Hub ITI’ in Visakhapatnam and four ‘Spoke it is’—one each in Visakhapatnam and Vizianagaram districts, and two in Alluri Sitarama Raju district.
The scheme aims to deliver benefits through state-led selection, industry involvement, and a structured implementation framework. To support this, consultations have been held with industry associations, and workshops have been conducted with states and UTs. Many states have sought guidance on preparing RFPs and SIPs. In response, the government has issued a model RFP document, detailed templates, and organised regional capacity-building workshops to help ensure timely and high-quality proposals.