Sarkari Yojana
PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) – Component II: Capacity Augmentation of Five National Skill Training Institutes (NSTIs) and Setting up of Five National Centres of Excellence for Skilling
About PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) – Component II: Capacity Augmentation of Five National Skill Training Institutes (NSTIs) and Setting up of Five National Centres of Excellence for Skilling
Run by the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India, the scheme “PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) – Component II: Capacity Augmentation of Five National Skill Training Institutes (NSTIs) and Setting up of Five National Centres of Excellence for Skilling” seeks to transform five National Skill Training Institutes into flagship centres for skilling and trainer development by improving their industry ties and engagement, governance structures, physical facilities, training quality, learning outcomes, and the market relevance of their courses. Through the scheme, the five NSTIs situated at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana — together with their trainees, working professionals, graduates, postgraduates, and ITI instructors — gain access to infrastructure upgrades (modern labs, residential facilities, and renovated or newly built hostels), the introduction of as many as 20 long-term trades (including a Centre of Excellence), 10 short-term trades, the upgrading of 20 existing courses, Diploma and Advanced Diploma-level certifications offering multiple entry and exit points, and pre-service and in-service training for 50,000 instructors in technical and teaching skills. Implementation rests with the Directorate General of Training (DGT), MSDE, carried out through an Institutional Management Committee (IMC) — set up as a registered Society — at each NSTI, under the strategic guidance of the National Steering Committee (NSC) and with operational backing from the National Project Monitoring Unit (NPMU). > Objectives:
- Launch up to 20 long-term trades (including a Centre of Excellence) and 10 short-term trades, and upgrade 20 existing courses, backed by infrastructure improvements such as modern labs, residential facilities, and renovated or newly constructed hostels.
- Pinpoint Global Partners and relevant sectors for setting up National Centres of Excellence in Skilling, assisting with curriculum design, trainer development, skills certification frameworks, and periodic reviews.
- Open up continuous learning pathways for the existing workforce employed in industrial and manufacturing sectors.
- Deliver redesigned, upgraded CITS programmes alongside Diploma and Advanced Diploma-level certifications with multiple entry and exit options, open to Class 10 pass-outs and above.
- Build and sustain a research ecosystem on each campus to continuously track the job market and support evidence-based skill gap analysis.
- Set up strong industry engagement channels, including active apprenticeship programmes and upskilling/re-skilling initiatives for the currently employed workforce.
- Run specialised training programmes for ITI principals, administrators, and vocational trainers, covering pre-service and in-service training for 50,000 instructors.
Scheme Overview
Central Government
Ministry Of Skill Development And Entrepreneurship
Business Entity
Scheme Details
Eligibility Requirements
To qualify for PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) – Component II: Capacity Augmentation of Five National Skill Training Institutes (NSTIs) and Setting up of Five National Centres of Excellence for Skilling, applicants must satisfy the following conditions:
A. For Lead Industry Partner (LIP) / Consortium:
The applicant must be an industry partner applying…
The applicant must be an industry partner applying on its own or as the lead entity within a consortium.
The applicant must record a minimum annual turnover…
The applicant must record a minimum annual turnover of ₹5,00,00,00,000 (₹500 crore).
The applicant must employ at least 500 people
The applicant must employ at least 500 people.
The applicant must pledge a minimum industry contribution…
The applicant must pledge a minimum industry contribution of ₹40,00,00,000 (₹40 crore) per NSTI spread across a five-year period.
Where a consortium applies, the stipulated minimum turnover…
Where a consortium applies, the stipulated minimum turnover and employee-strength criteria must be met solely by the Lead Industry Partner.
The Chairperson put forward by the LIP must…
The Chairperson put forward by the LIP must be a serving employee of the LIP holding a senior leadership position. B. For Trainees / Students of Upgraded NSTI Programmes:
The applicant must have passed Class 10 or…
The applicant must have passed Class 10 or above.
The applicant could be a working professional, graduate,…
The applicant could be a working professional, graduate, or postgraduate looking for higher-level skilling programmes. Course-Specific Eligibility (Annexure III):
CTS (National Trade Certificate)
CTS (National Trade Certificate): The applicant must have cleared Class 8th, 10th, or 12th, depending on the trade concerned.
CITS (National Craft Instructor Certificate)
CITS (National Craft Instructor Certificate): The applicant must have finished CTS (ITI), NAC (National Apprenticeship Certificate), Diploma, or Degree.
Short-term Courses on Advanced Skilling
Short-term Courses on Advanced Skilling: Eligibility is determined by industry requirements.
Diploma
Diploma: The applicant must have cleared Class 10th or its equivalent.
Advanced Diploma (Technical and Work-based)
Advanced Diploma (Technical and Work-based): The applicant must have cleared Class 12th or its equivalent.
PG Certificate
PG Certificate: The applicant must be a Graduate or Post-Graduate. Reservation / Inclusion:
Each IMC's Governing Body must include no fewer…
Each IMC's Governing Body must include no fewer than one female member to promote diversity and inclusion.
The Strategic Investment Plan (SIP) must incorporate specific…
The Strategic Investment Plan (SIP) must incorporate specific activities aimed at inclusion and accessibility, boosting participation among women, SC, ST, and PwD (Persons with Disabilities).
Female enrolment target
Female enrolment target: 30% of enrolled students by the end of the 5th year.
Benefits Provided
PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) – Component II: Capacity Augmentation of Five National Skill Training Institutes (NSTIs) and Setting up of Five National Centres of Excellence for Skilling provides the following benefits to eligible applicants:
Upgrading the infrastructure of 5 NSTIs located at…
Upgrading the infrastructure of 5 NSTIs located at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, covering civil infrastructure, equipment, and support facilities — the estimated total cost is ₹1,00,00,00,00,000 (₹1,000 crore), i.e., ₹2,00,00,00,000 (₹200 crore per NSTI).
Costs of operations and workforce — ₹1,00,00,00,000 (₹100…
Costs of operations and workforce — ₹1,00,00,00,000 (₹100 crore) in total, which works out to ₹20,00,00,000 / ₹20 crore per NSTI.
A provision set aside for Training of Trainers…
A provision set aside for Training of Trainers (ToT) — ₹4,00,00,00,000 (₹400 crore) to fund pre-service and in-service training, including foreign training, of ITI trainers at all 5 NSTIs, with the Central Government and Industry Partners sharing the cost equally in a 50:50 ratio.
Launch of up to 20 long-term trades (a…
Launch of up to 20 long-term trades (a Centre of Excellence among them) and 10 short-term trades, along with upgradation of 20 courses already running.
Every NSTI to get modern labs, residential facilities,…
Every NSTI to get modern labs, residential facilities, and hostels that are either renovated or newly built.
Certifications at Diploma and Advanced Diploma level, offering…
Certifications at Diploma and Advanced Diploma level, offering multiple entry and exit options, open to those who have passed Class 10 or higher, including working professionals, graduates, and postgraduates.
Specialised Academic Centres to be set up at…
Specialised Academic Centres to be set up at every NSTI:
Centre for Industrial Collaboration (CIC)
National Centre of Excellence (NCoE) for Skilling
Centre for TVET Practitioners Development
Centre for Research, Innovation and Entrepreneurship (CRIE)
Technical and pedagogical training, both pre-service and in-service,…
Technical and pedagogical training, both pre-service and in-service, for 50,000 instructors.
Funds that industry contributes under the scheme qualify…
Funds that industry contributes under the scheme qualify for CSR Exemption.
Freedom to set and collect student fees for…
Freedom to set and collect student fees for newly developed courses, except for government-funded schemes such as CTS and CITS.
Services that earn revenue, such as production centres,…
Services that earn revenue, such as production centres, incubation centres, and maker spaces offered on a chargeable basis, with the income ploughed back into skill development.
Mode of Disbursement:
Every release of funds goes to the escrow bank account of the NSTI-IMC, held in a Scheduled Commercial Bank.
Contributions from industry are paid straight into the Escrow Accounts.
The Central Government releases its funds to the Escrow Accounts in line with extant rules.
The escrow accounts opened by the IMC are mapped to the Public Financial Management System (PFMS) portal.
Frequency of Disbursement:
Year 1: Once NSC approves the Strategic Investment Plan (SIP), an initial advance of up to 10% of the total approved project outlay (industry share included) is released. A further 10% follows once a Global Partner is onboarded. Year 1 has no second instalment.
Years 2 to 5: The balance of 80% is paid in annual tranches, each year split into two equal instalments (50% each), released only when specific milestones are met:
First Instalment: at least 75% of the previous year's funds utilised, AOP approved, and at least 80% of the previous year's KPI targets met.
Second Instalment: at least 50% of the current year's KPI targets met, the industry's 20% share deposited in escrow, and reporting requirements complied with.
Validity: The scheme covers a five-year period running from FY 2025-26 to FY 2029-30.
Documents Required
Applicants should keep the following documents ready before starting the application:
A. For Lead Industry Partner (LIP) Application:
Expression of Interest (EoI) submission
Expression of Interest (EoI) submission
Response document for the Request for Proposal (RFP)
Response document for the Request for Proposal (RFP)
Annual Turnover Certificate (evidencing a minimum turnover of…
Annual Turnover Certificate (evidencing a minimum turnover of ₹5,00,00,00,000 / ₹500 crore)
Employee Strength Documentation (evidencing a minimum headcount of…
Employee Strength Documentation (evidencing a minimum headcount of 500)
Financial Contribution Commitment Letter (for ₹40,00,00,000 / ₹40…
Financial Contribution Commitment Letter (for ₹40,00,00,000 / ₹40 crore per NSTI)
Strategic Investment Plan (SIP) Proposal (following the Template…
Strategic Investment Plan (SIP) Proposal (following the Template in Annexure V)
Technical Proposal (showcasing technical expertise and long-term commitment)
Technical Proposal (showcasing technical expertise and long-term commitment)
Financial Proposal (for evaluation under Quality and Cost-Based…
Financial Proposal (for evaluation under Quality and Cost-Based Selection)
Scheduling of Interventions Document
Scheduling of Interventions Document
Consortium Agreement (where applying as a consortium)
Consortium Agreement (where applying as a consortium)
Memorandum of Understanding (MoU) / Agreement covering collaboration…
Memorandum of Understanding (MoU) / Agreement covering collaboration and upgradation of the NSTI
Declaration of No Conflict of Interest (for the…
Declaration of No Conflict of Interest (for the nominated Governing Body members) B. For Trainees Applying to NSTI Programmes (as per course eligibility):
Class 8th / 10th / 12th Mark Sheet…
Class 8th / 10th / 12th Mark Sheet / Pass Certificate (depending on course requirement)
Graduation / Post-Graduation Certificate (for PG Certificate courses)
Graduation / Post-Graduation Certificate (for PG Certificate courses)
CTS (ITI) Certificate / National Apprenticeship Certificate (NAC)…
CTS (ITI) Certificate / National Apprenticeship Certificate (NAC) / Diploma / Degree Certificate (for CITS programmes)
Identity Proof
Identity Proof
Address Proof
Address Proof
Recent Passport-Size Photographs Note
Recent Passport-Size Photographs Note: The exact application documents for trainees will be laid down by each NSTI according to the courses offered under the upgraded scheme.
How to Apply
Offline Application
Applicants can apply for PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) – Component II: Capacity Augmentation of Five National Skill Training Institutes (NSTIs) and Setting up of Five National Centres of Excellence for Skilling through the offline application process outlined below.
A. For Lead Industry Partner (LIP):
The Directorate General of Training (DGT), MSDE, sets…
The Directorate General of Training (DGT), MSDE, sets the process in motion to select a Lead Industry Partner (LIP) for each NSTI via a transparent, competitive bidding route.
DGT floats an Expression of Interest (EoI) calling…
DGT floats an Expression of Interest (EoI) calling on industry players to express interest and submit preliminary proposals for taking part in the scheme. (Onboarding through the EoI is to begin within T+60 days of the NSC approving the guidelines.)
On the basis of responses received, DGT drafts…
On the basis of responses received, DGT drafts and issues a detailed Request for Proposal (RFP) after obtaining the necessary approvals from the National Steering Committee (NSC).
Selection follows the Quality and Cost-Based Selection (QCBS)…
Selection follows the Quality and Cost-Based Selection (QCBS) approach, with DGT settling the pre-qualification norms and the technical and financial evaluation criteria.
The industry partner files its bid (either alone…
The industry partner files its bid (either alone or as the lead member of a consortium) along with all necessary documents, including the SIP proposal and its financial commitment.
A committee headed by the Deputy Director General…
A committee headed by the Deputy Director General (DDG) / Joint Secretary (Schemes), with representatives from the Regional Directorate of Skill Development and Entrepreneurship (RDSDE) and the concerned NSTI, evaluates the bids on parameters such as demonstrated technical expertise, long-term commitment, quality of the SIP, scheduling of interventions, and the financial contribution proposed.
The shortlisted proposal goes to the National Steering…
The shortlisted proposal goes to the National Steering Committee (NSC) for final sign-off.
Once approved, the selected industry partner signs a…
Once approved, the selected industry partner signs a formal agreement with DGT to head the IMC. (Final selection and SIP approval to be completed within T+105 days.)
The LIP sets up the Institutional Management Committee…
The LIP sets up the Institutional Management Committee (IMC) / Society and files the initial draft Strategic Investment Plan (SIP) with the NSC. (Within T+90 days.)
Once the NSC approves the SIP, implementation proceeds…
Once the NSC approves the SIP, implementation proceeds as per the approved SIP and the Annual Operational Plans (AOPs).
B. For Trainees:
Eligible candidates (Class 10 pass-outs and above, working professionals, graduates, postgraduates) can apply for the CTS, CITS, Short-term courses, Diploma, Advanced Diploma, or PG Certificate programmes on offer at the upgraded NSTIs situated at:
NSTI Bhubaneswar
NSTI Chennai
NSTI Hyderabad (NSTI-R, NSTI-V, NSTI-W)
NSTI Kanpur
NSTI Ludhiana
Application steps, course timetables, and admission particulars for trainees will be issued by the respective IMCs of each NSTI in line with the courses offered under the upgraded framework.
Objectives
**
Official Application & Website
Verify the latest eligibility, dates and instructions before applying.