PM-SETU: Nine ITIs to be modernised in Gujarat, Andhra Pradesh with ₹440 crore investment
Synopsis
Nine government ITIs in Surat and Visakhapatnam are set for a ₹440 crore overhaul under PM-SETU, backed by steelmaker AM/NS India in one of the scheme's largest single industry commitments yet — a signal that private capital is beginning to flow meaningfully into India's long-neglected vocational training infrastructure.
Key Takeaways
Nine government ITIs — five in Surat, Gujarat and four in Visakhapatnam, Andhra Pradesh — will be modernised under the PM-SETU scheme.
ArcelorMittal Nippon Steel India (AM/NS India) is the industry partner, with an approved combined investment of approximately ₹440 crore .
Dedicated SPVs will be set up; AM/NS India holds a 51% stake , with central and state governments each holding 24.5% .
NAMTECH will serve as the academic and technical partner, supporting curriculum reform and faculty development.
The first 14 Strategic Investment Plans under PM-SETU collectively represent a proposed investment of ₹3,446 crore .
Skill Development Secretary Debashree Mukherjee called this 'the beginning of a transformative journey for ITIs.'
Shareholders' Agreements (SHAs) have been signed under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme to modernise nine government Industrial Training Institutes (ITIs) across Gujarat and Andhra Pradesh, the Ministry of Skill Development and Entrepreneurship (MSDE) announced on Monday, 12 October 2026. The pacts, executed in partnership with ArcelorMittal Nippon Steel India (AM/NS India), cover a combined approved investment of approximately ₹440 crore and represent one of the largest industry commitments approved under PM-SETU to date.
Key Details of the Agreement
The SHAs were signed between the Directorate General of Training (DGT) under MSDE, the respective state governments of Gujarat and Andhra Pradesh, and AM/NS India. The partnership covers a cluster of five government ITIs in Surat, Gujarat and four government ITIs in Visakhapatnam, Andhra Pradesh, enabling the rollout of approved Strategic Investment Plans (SIPs) in both states.
Dedicated Special Purpose Vehicles (SPVs) will be established to oversee implementation and operations of the ITI clusters. Under the equity structure, AM/NS India will hold a 51% stake in each SPV, while the central government and the respective state governments will each retain a 24.5% equity share.
What the Modernisation Covers
The proposed interventions are wide-ranging. They include modernisation of training infrastructure, workshops, and laboratories; introduction of industry-relevant and emerging technology trades; revision of curricula to align with evolving industry requirements; strengthening of instructor training; and expansion of hands-on learning opportunities for trainees.
AM/NS India will execute the programme in collaboration with the New Age Makers' Institute of Technology (NAMTECH), which will serve as its academic and technical partner. The steelmaker will contribute industry expertise and manufacturing insights, while NAMTECH will support curriculum reforms, faculty development, academic innovation, and improvements in training delivery, according to the ministry.
What the Government Said
Speaking at the signing ceremony, Skill Development and Entrepreneurship Secretary Debashree Mukherjee described the agreements as 'the beginning of a transformative journey for ITIs.' She emphasised the need to develop PM-SETU institutions into centres of excellence capable of nurturing future WorldSkills champions.
The ministry noted that the measures are expected to improve training quality, enhance employability outcomes, and better prepare ITI graduates for industry requirements.
Broader PM-SETU Context
The AM/NS India projects are among the most significant commitments made under PM-SETU so far. Notably, the first 14 Strategic Investment Plans cleared under the scheme collectively account for a proposed investment of ₹3,446 crore. This signals accelerating private-sector engagement in India's vocational training overhaul — a segment that has historically struggled with poor infrastructure and weak industry linkages.
This comes amid a broader national push to align ITI graduates with the demands of advanced manufacturing, green energy, and semiconductor supply chains. As more SIPs are cleared, the scale of industry participation under PM-SETU is expected to grow further in the months ahead.
Point of View
With government as a minority equity partner — is a structurally different bet from past ITI reform cycles, which relied almost entirely on public capital and produced uneven results. The real test is whether industry stakeholders like AM/NS India follow through with curriculum alignment that reflects actual shop-floor needs, or whether the upgrade remains largely infrastructural. India's ITI system has long suffered from a mismatch between what is taught and what employers want; modernised labs alone will not close that gap. The involvement of NAMTECH as an academic partner is promising, but its track record at scale remains to be proven.
NationPress
12 Oct 2026
Frequently Asked Questions
What is the PM-SETU scheme?
PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs. It is a government initiative to modernise Industrial Training Institutes across India by bringing in private-sector partners through Special Purpose Vehicles, with industry holding a majority stake to drive curriculum and infrastructure reforms.
Which ITIs are being modernised under this agreement?
The agreement covers nine government ITIs — five in Surat, Gujarat and four in Visakhapatnam, Andhra Pradesh. These form two clusters that will be developed under approved Strategic Investment Plans executed with AM/NS India.
How much is being invested in the ITI upgrade?
The Surat and Visakhapatnam clusters together involve an approved investment of approximately ₹440 crore. Across the first 14 Strategic Investment Plans cleared under PM-SETU, the total proposed investment stands at ₹3,446 crore.
What role will AM/NS India and NAMTECH play?
AM/NS India will lead the programme, contributing industry expertise and manufacturing insights while holding a 51% stake in the SPVs. NAMTECH will act as its academic and technical partner, supporting curriculum reforms, faculty development, and improvements in training delivery.
How is the equity in the SPVs structured?
Each Special Purpose Vehicle will be majority-owned by AM/NS India at 51%, with the central government and the respective state government each holding a 24.5% equity share. This structure is designed to ensure industry-led governance while retaining public accountability.
