Government Schemes★ Must Know

Centre Approves Nationwide Rollout of PM-SETU Across 200 ITI Clusters

By TestNeeti Editorial Team 3 min readSource: CA - PM SchemesArticle 7 of 21

The Centre on Tuesday approved the nationwide rollout of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) across all 200 identified Industrial Training Institute (ITI) clusters, expanding its flagship skill development programme from the pilot phase. The decision was taken at the fourth meeting of the National Steering Committee (NSC), chaired by Secretary, Ministry of Skill Development and Entrepreneurship (MSDE), Debashree Mukherjee. The committee also cleared Strategic Investment Plans (SIPs) worth ₹1,237.58 crore for five ITI clusters in Odisha, Gujarat and Telangana. PM-SETU, a Centrally Sponsored Scheme approved by the Union Cabinet in 2025, aims to upgrade 1,000 ITIs into state-of-the-art skilling institutions, with a total outlay of ₹60,000 crore over five years.

Key Facts & Details

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    The Centre approved the nationwide rollout of PM-SETU across all 200 identified ITI clusters, transitioning the scheme from its pilot phase to full implementation.
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    The decision was taken at the fourth meeting of the National Steering Committee (NSC), chaired by MSDE Secretary Debashree Mukherjee.
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    Strategic Investment Plans (SIPs) worth ₹1,237.58 crore were approved for five ITI clusters in Odisha, Gujarat and Telangana.
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    In Odisha, Government ITI Barbil is the hub institute, with Jindal Naveen Awasar Limited as the Anchor Industry Partner investing ₹240.21 crore.
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    In Gujarat, Government ITI Surat serves as the hub, with ArcelorMittal Nippon Steel India as the Anchor Industry Partner investing ₹240.18 crore.
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    Telangana received three clusters, hubbed at Government ITI Old City, Patancheru and Sangareddy, with anchor investments of ₹241.01 crore, ₹275.24 crore and ₹240.94 crore respectively.

Deep Dive

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    PM-SETU is a flagship Centrally Sponsored Scheme approved by the Union Cabinet in 2025 to upgrade 1,000 ITIs into state-of-the-art skilling institutions aligned with industry needs.
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    The scheme has a total outlay of ₹60,000 crore over five years, with the Centre contributing ₹30,000 crore, states ₹20,000 crore and industry ₹10,000 crore.
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    The NSC also approved measures to simplify implementation, strengthen industry participation, encourage greater involvement of public sector undertakings (PSUs), and expand the institutional ecosystem supporting the scheme.
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    The transition from pilot to nationwide rollout lets states and Union Territories implement PM-SETU based on industry readiness and institutional capacity, using a hub-and-spoke model of ITIs.
Q

Exam Focus

Examiners may ask the full form of PM-SETU, its total outlay (₹60,000 crore), the Centre-state-industry funding split, the number of ITIs it targets to upgrade (1,000), the number of identified clusters (200), or the ministry that runs it (MSDE).

Related Topics

PM-SETUSkill DevelopmentITI upgradationMSDECentrally Sponsored Scheme

Exam Relevance & Angle

PM-SETU is a flagship skilling scheme under the Ministry of Skill Development and Entrepreneurship, and its ₹60,000 crore outlay, 1,000-ITI target and hub-and-spoke, industry-anchored model make its figures and structure high-frequency material for banking, SSC and UPSC general awareness sections.

Target Exams

SBI POIBPS POSSC CGLSSC CHSLRRB NTPCUPSC CSEState PCS

Background & Context

Industrial Training Institutes (ITIs) are post-secondary vocational training centres in India that provide trade-specific skills, historically governed by the Directorate General of Training under the Ministry of Skill Development and Entrepreneurship (MSDE), which was created in 2014 to consolidate India's skilling efforts. A Centrally Sponsored Scheme is one where funding is shared between the Centre and the states, unlike a Central Sector Scheme funded fully by the Union. PM-SETU uses a hub-and-spoke model in which a lead ITI (the hub) supports several linked spoke ITIs, and an Anchor Industry Partner co-invests and aligns training with real employer demand. This public-private-state financing structure reflects India's broader push to make its large young workforce more employable through demand-driven vocational training.

Related GK Concepts

Must Know
Ministry of Skill Development and Entrepreneurship (MSDE)Industrial Training Institutes (ITIs)Centrally Sponsored SchemeSkill India MissionPublic-private partnership in skilling

Test Yourself

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What is the total outlay of the PM-SETU scheme approved by the Union Cabinet in 2025?

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Centre Approves Nationwide Rollout of PM-SETU Across 200 ITI Clusters — Current Affairs 2026-07-07