PM-SETU nationwide rollout approved; ₹1,238 crore to modernise ITIs
Synopsis
The Centre has moved PM-SETU from pilot to pan-India, clearing ₹1,237.58 crore across five ITI clusters in Odisha, Gujarat, and Telangana. With 200 clusters now in scope and PSUs being drawn in as anchor partners, this is the most concrete scaling of India's ITI modernisation push yet — the real test is whether industry co-investment translates into jobs, not just upgraded workshops.
Key Takeaways
The Centre approved the nationwide rollout of PM-SETU on 7 July 2025 , covering all 200 identified ITI clusters .
Five Strategic Investment Plans worth ₹1,237.58 crore were cleared across Odisha , Gujarat , and Telangana .
The Government ITI Patancheru cluster in Telangana received the largest single allocation of ₹275.24 crore .
The approvals were taken at the fourth NSC meeting chaired by MSDE Secretary Debashree Mukherjee .
Greater PSU involvement and simplified implementation procedures were also approved at the meeting.
The Centre on Tuesday, 7 July approved the nationwide rollout of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme and cleared Strategic Investment Plans (SIPs) worth ₹1,237.58 crore to modernise Industrial Training Institutes (ITIs) through industry partnerships. The decisions were announced by the Ministry of Skill Development and Entrepreneurship (MSDE), marking a significant escalation of one of the Centre's flagship skilling programmes.
From Pilot to Pan-India Rollout
The approvals were taken at the fourth meeting of the National Steering Committee (NSC) on PM-SETU, chaired by MSDE Secretary Debashree Mukherjee. The committee greenlit the transition of PM-SETU from its pilot phase to a full-scale deployment across all 200 identified ITI clusters nationwide. States and Union Territories will now implement the scheme based on their industry readiness and execution capacity, according to the ministry.
The meeting also approved measures to simplify implementation procedures, enhance industry participation, encourage greater involvement of public sector undertakings (PSUs), and strengthen the institutional ecosystem underpinning the programme.
Five Strategic Investment Plans Cleared
A key outcome of the meeting was the approval of five Strategic Investment Plans with a combined outlay of ₹1,237.58 crore, backed by leading industry partners across Odisha, Gujarat, and Telangana.
In Odisha, a company was selected as the anchor industry partner for the Government ITI Barbil cluster, with a proposed investment of ₹240.21 crore. In Gujarat, an integrated flat carbon steel manufacturer will anchor the Government ITI Surat cluster with an investment of ₹240.18 crore.
Three ITI clusters in Telangana also received approval. A healthcare education and training organisation will lead the Government ITI Old City cluster with an investment of ₹241.01 crore, while another firm will anchor the Government ITI Patancheru cluster with ₹275.24 crore. The Government ITI Sangareddy cluster will be supported by a company with an investment of ₹240.94 crore.
What the Investment Plans Are Designed to Achieve
The Strategic Investment Plans — recommended by the respective State Steering Committees — are aimed at upgrading ITI infrastructure, introducing industry-aligned training programmes, and improving employability outcomes through closer collaboration between industry and training institutions. Notably, the involvement of PSUs and anchor industry partners signals a shift toward co-ownership of skilling outcomes rather than purely government-driven delivery.
This comes amid a broader national push to bridge the gap between India's vocational training supply and the demands of an evolving industrial economy. PM-SETU focuses on upgraded infrastructure, future-ready curricula, stronger industry partnerships, and improved employment opportunities for students.
What Comes Next
With the nationwide rollout now formally approved, states and Union Territories are expected to begin implementation in phases, calibrated to local industry readiness. The expansion to 200 ITI clusters across the country will be closely watched as a test of whether the scheme can translate infrastructure investment into measurable employment gains — a challenge that has historically dogged India's vocational training ecosystem.
Point of View
At least in theory, is shared. But the scheme's credibility will hinge on one metric it has not yet committed to publicly: placement rates. India has upgraded ITI infrastructure before without moving the needle on graduate employability. The PSU inclusion is a smart hedge, but PSUs have their own hiring constraints. Until the MSDE publishes verifiable employment outcomes cluster by cluster, ₹1,238 crore risks being another infrastructure story dressed as a jobs story.
NationPress
7 Jul 2026
Frequently Asked Questions
What is the PM-SETU scheme?
PM-SETU, or Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, is a Central government initiative to modernise India's Industrial Training Institutes through upgraded infrastructure, industry-aligned curricula, and direct industry partnerships. It is one of the flagship programmes of the Ministry of Skill Development and Entrepreneurship.
Which states received investment approvals under PM-SETU on 7 July 2025?
Five Strategic Investment Plans worth ₹1,237.58 crore were approved for ITI clusters in Odisha (Barbil), Gujarat (Surat), and Telangana (Old City, Patancheru, and Sangareddy). The approvals were backed by leading industry partners in each state.
How many ITI clusters will be covered under the nationwide PM-SETU rollout?
The nationwide rollout covers all 200 identified ITI clusters across India. States and Union Territories will implement the scheme based on their industry readiness and execution capacity.
Who chairs the National Steering Committee on PM-SETU?
The National Steering Committee on PM-SETU is chaired by MSDE Secretary Debashree Mukherjee. The fourth meeting of the committee, held on 7 July 2025, approved both the nationwide rollout and the five Strategic Investment Plans.
What is the purpose of the Strategic Investment Plans under PM-SETU?
The Strategic Investment Plans are designed to upgrade ITI infrastructure, introduce industry-aligned training programmes, and improve student employability through closer collaboration between industry and training institutions. They are recommended by State Steering Committees and backed by anchor industry partners.
