PM-SETU Scheme 2026: ₹60,000 Crore ITI Upgrade Plan, Latest Approvals and Student Guide
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The government’s PM-SETU scheme is designed to change how students learn practical skills at Industrial Training Institutes (ITIs) across India. Instead of relying only on traditional workshops and outdated equipment, the programme aims to connect government ITIs with industry partners, modern laboratories and training linked to actual job requirements.
The scheme returned to the headlines on 16 October 2026, when the National Steering Committee approved five Strategic Investment Plans worth ₹1,194.92 crore for ITI clusters in Odisha, Maharashtra and Jammu and Kashmir. The Ministry of Skill Development and Entrepreneurship (MSDE) reported that cumulative approved investment under PM-SETU had reached ₹3,687 crore.
For students and parents, the important question is what these approvals mean in practice. Will ITI courses change? Can students apply online? Which institutes are included? And when can learners expect better training and employment opportunities?
This guide explains the PM-SETU scheme, its funding structure, implementation progress, latest cluster approvals and the steps students should take to check opportunities at their local ITI.
PM-SETU Scheme 2026: Overview
| Detail | Information |
|---|---|
| Full form | Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs |
| Ministry | Ministry of Skill Development and Entrepreneurship (MSDE) |
| Launch date | 4 October 2025 |
| Total scheme outlay | ₹60,000 crore |
| Central share | ₹30,000 crore |
| State share | ₹20,000 crore |
| Industry contribution | ₹10,000 crore |
| Government ITIs targeted | 1,000 |
| Hub ITIs | 200 |
| Spoke ITIs | 800 |
| NSTIs covered | 5 |
| Implementation model | Hub-and-Spoke with industry-led governance |
| Latest reported approvals | Five ITI cluster plans worth ₹1,194.92 crore on 16 October 2026 |
| Official portal | pm-setu.skillindiadigital.gov.in |
Official references: Prime Minister’s Office.
What Is the PM-SETU Scheme?
PM-SETU is a Centrally Sponsored Scheme that aims to upgrade government Industrial Training Institutes and make vocational training more relevant to the needs of employers.
The Union Cabinet approved the scheme on 7 May 2025. Prime Minister Narendra Modi launched it on 4 October 2025 in New Delhi.
The central idea is straightforward: students should learn using modern equipment, relevant training programmes and practical methods that reflect the technology used in workplaces.
Under PM-SETU, government ITIs are being organised into clusters. An industry partner works with the government to develop and manage the cluster, while students gain access to improved training facilities and industry connections.
The scheme has a total outlay of ₹60,000 crore, shared between the Centre, State Governments and industry. The World Bank and Asian Development Bank also provide co-financing support for the programme.
One point is especially important for students: PM-SETU is an institutional upgradation scheme, not a direct cash-benefit programme. It does not provide a separate personal registration process through which students can claim money simply by applying online.
Official details are available on the PM-SETU portal (pm-setu.skillindiadigital.gov.in).
Why Does India Need PM-SETU?
Industrial Training Institutes provide vocational education in trades such as electrical work, fitting, machining, electronics, computer operations and other technical fields.
These skills can help students prepare for employment, apprenticeships and further technical training. However, the quality of training depends on more than the availability of a course.
Students also need functioning machinery, updated laboratories, trained instructors and opportunities to understand how their trade is used in real workplaces.
The government’s October 2026 backgrounder reports that the total number of government and private ITIs increased from 9,776 in 2014 to 13,888 in 2026. Enrolment rose from 9.51 lakh in the 2014–15 academic session to 14.70 lakh in 2025–26.
These figures show the expansion of the ITI network. They do not, by themselves, establish that training quality or placement outcomes have improved at every institute.
PM-SETU aims to address that challenge through infrastructure upgrades, industry participation, modern courses and stronger links between training and employment.
Earlier government initiatives also attempted to upgrade ITIs. What distinguishes PM-SETU is its planned combination of large-scale investment, cluster-based infrastructure and formal industry participation in governance.
What Are the Two Components of PM-SETU?
The scheme has two main components.
Component 1: Upgradation of 1,000 Government ITIs
The first component covers 1,000 government ITIs across India.
These institutes are organised into:
- 200 Hub ITIs
- 800 Spoke ITIs
The plan is to connect each Hub with approximately four Spokes. This arrangement allows participating institutes to share selected facilities, training resources and industry connections.
The proposed improvements include modern laboratories, smart classrooms, digital learning resources, new-age training facilities and better links with employers.
Component 2: Strengthening Five National Skill Training Institutes
The second component focuses on five National Skill Training Institutes (NSTIs), located in:
- Bhubaneswar
- Chennai
- Hyderabad
- Kanpur
- Ludhiana
These institutes are being strengthened as National Centres of Excellence, with a focus on advanced training and instructor development.
According to the Ministry of Skill Development and Entrepreneurship’s 16 October 2026 announcement, 3,744 trainers had been trained through NSTIs under the scheme by October 2026.
This component matters because modern equipment alone cannot improve training if instructors do not have the knowledge and experience to use it effectively.
How Does the Hub-and-Spoke Model Work?
The Hub-and-Spoke model is one of the central features of the PM-SETU scheme.
A Hub ITI acts as the main centre for a cluster. It is expected to provide stronger infrastructure, specialised training facilities and resources that can support the surrounding Spoke ITIs.
Spoke ITIs extend access to these resources without requiring every institute to independently develop all the same facilities.
For example, a cluster may have one Hub ITI with specialised laboratories and several Spoke ITIs that connect students and instructors to the cluster’s training resources.
The planned arrangements may include:
- Modern laboratories and equipment
- Innovation centres
- Training-of-trainers facilities
- Production units
- Digital learning systems
- Industry-oriented courses
- Placement and employer engagement services
The exact facilities and courses will depend on the approved investment plan and its implementation at each cluster.
Being part of a selected cluster does not automatically mean every new facility is already operational. Students should check the current status directly with their institute.
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Who Manages a PM-SETU ITI Cluster?
PM-SETU introduces an industry-led governance structure through a Special Purpose Vehicle (SPV).
An SPV is a separate entity established to manage a defined project or group of institutions. Under the proposed PM-SETU ownership structure, the Anchor Industry Partner holds 51% of the shares, while the Centre and State Government hold 24.5% each.
The industry partner is expected to help align training with regional employment requirements and industry practices.
The general implementation process involves the following stages:
- Cluster identification: The State Government identifies participating ITIs and the proposed cluster.
- Industry participation: The State invites potential industry partners through the applicable selection process.
- Investment proposal: The prospective Anchor Industry Partner submits a Strategic Investment Plan (SIP).
- Plan approval: The National Steering Committee reviews and approves the investment plan.
- Implementation: The partners proceed with the approved arrangements, including SPV formation and campus upgrades.
An approved SIP is an important milestone, but it should not be confused with the completion of construction, installation of equipment or commencement of every proposed course.
PM-SETU Progress After One Year
The government’s 3 October 2026 backgrounder provides a snapshot of implementation during the scheme’s first year.
| Progress indicator | Officially reported position |
|---|---|
| ITIs identified | 850 |
| Hub ITIs identified | 172 |
| Spoke ITIs identified | 678 |
| States and UTs that identified clusters and created dedicated budget heads | 36 |
| States and UTs with State Steering Committees | 35 |
| States and UTs that initiated industry participation | 26 |
| Clusters covered by the nationwide rollout decision | 200 |
| SIPs listed in the 3 October backgrounder | 14 |
| Investment listed in that backgrounder | ₹3,446 crore |
These are reported implementation indicators, not proof that all identified institutes have completed their upgrades.
The distinction matters. Identifying an ITI, inviting industry bids, approving a plan and making new facilities available to students are separate stages.
What Changed on 16 October 2026?
At its sixth meeting, the National Steering Committee approved five Strategic Investment Plans worth ₹1,194.92 crore.
The official release reported cumulative approved investment of ₹3,687 crore following those approvals.
There is an important reporting issue here. The 3 October backgrounder lists ₹3,446 crore across 14 clusters, while the 16 October release reports ₹3,687 crore cumulatively. Some cluster names also appear in both published lists.
Readers should therefore use the latest official release for the current cumulative figure rather than adding the two totals together. The published figures should not be combined unless the Ministry provides a reconciled account of the cluster-level amounts.
Latest PM-SETU Cluster Approvals: 16 October 2026
The sixth National Steering Committee meeting approved the following five investment plans.
| State/UT | Cluster | Anchor Industry Partner | Approved investment |
|---|---|---|---|
| Odisha | Kataka | Tata Steel Foundation | ₹240.50 crore |
| Maharashtra | Pune | BVG India Limited, in consortium with BVG Foundation | ₹241 crore |
| Maharashtra | Chhatrapati Sambhajinagar | Belrise Industries Limited | ₹238.01 crore |
| Jammu and Kashmir | Jammu | Eagle Infra India Limited | ₹240 crore |
| Jammu and Kashmir | Srinagar | Inderdeep Infra India Limited | ₹235.41 crore |
| Total | 5 clusters | ₹1,194.92 crore |
These amounts are the approved Strategic Investment Plan values reported in the 16 October release. They should not be interpreted as money already spent or as a direct payment to students.
The plans focus on modernising infrastructure, introducing industry-aligned training, strengthening instructor capacity and improving links between ITIs and employers.
Which ITIs Are Included in the Latest Approvals?
The official release identifies the Hub and Spoke institutes for each of the five clusters.
Odisha — Kataka cluster
- Hub: Government ITI Kataka
- Spokes: Madhusudan Government ITI Choudwar, Government ITI Paradeep, Government ITI Jajpur and Government ITI Dhenkanal
Maharashtra — Pune cluster
- Hub: Government ITI Aundh, Pune
- Spokes: Government ITI Aundh (Women), Government ITI Pimpri Chinchwad, Government ITI Khed (Rajgurunagar) and Government ITI Mulshi
Maharashtra — Chhatrapati Sambhajinagar cluster
- Hub: Government ITI Chhatrapati Sambhajinagar
- Spokes: Government ITI Paithan, Government ITI Khultabad, Government ITI Phulambri and Government ITI Gangapur
Jammu cluster
- Hub: Government ITI Jammu
- Spokes: Government ITI R.S. Pura, Government ITI Nowshera, Government ITI Samba and Government ITI Kathua
Srinagar cluster
- Hub: Government ITI Srinagar
- Spokes: Government ITI Ganderbal, Government ITI Kangan, Government ITI Budgam and Government ITI Charar-i-Sharief
What Does PM-SETU Mean for Odisha Students?
The Kataka ITI cluster is the most relevant of the latest approvals for students in Odisha.
Tata Steel Foundation is the partner for the cluster, with Government ITI Kataka serving as the Hub. Four other government ITIs are included as Spokes: Choudwar, Paradeep, Jajpur and Dhenkanal.
The approved plan aims to strengthen infrastructure, introduce new-age training programmes and improve industry connections in the region.
For students, these changes could create better opportunities to learn practical skills and become familiar with current workplace requirements. However, the actual benefit will depend on implementation, the trades offered at each campus and the availability of training facilities.
If you are already studying at one of these institutes, ask your principal or training officer:
- Which PM-SETU upgrades have been approved for the institute?
- When will new equipment or laboratories become available?
- Will any new trades be introduced?
- Are apprenticeships or industry training opportunities planned?
- How will placements and employer engagement be organised?
Students outside the latest approved clusters should not assume that their ITI is excluded from every future development. The scheme targets 1,000 government ITIs, and the official portal provides state-wise ITI information.
Which New-Age Courses May Be Available Under PM-SETU?
PM-SETU supports the broader goal of aligning vocational training with emerging technologies and changing employer requirements.
The government has highlighted areas such as:
- Artificial Intelligence
- Cybersecurity
- Electric Vehicles
- Robotics
- Semiconductor Technology
- Additive Manufacturing and 3D Printing
- Internet of Things (IoT)
- Drone technology
- Solar energy
- Green Hydrogen
- 5G technologies
- Software testing
The availability of a particular trade depends on the institute, its approvals, infrastructure and the applicable State-level arrangements.
Important: A course being listed nationally does not mean that every government ITI offers it. Confirm the current trade list with the institute or the relevant State ITI admission portal before making an admission decision.
International Partnerships for NSTIs
The scheme also includes international collaboration to strengthen instructor development and specialised training.
The government’s first-year backgrounder reports partnerships involving:
- Singapore — NSTI Chennai
- France — NSTI Kanpur
- Australia — NSTI Bhubaneswar
- Germany — NSTI Hyderabad
The backgrounder distinguishes between signed memorandums of understanding and other forms of formal cooperation. Students should not assume that these partnerships automatically provide overseas placements or foreign employment.
PM-SETU Eligibility: Who Can Benefit?
PM-SETU primarily targets the selected government ITIs included in its upgradation programme.
Students may benefit by enrolling in participating institutes, but the scheme does not replace the normal admission process.
For regular ITI admission, eligibility depends on the trade, institute and State admission rules. DGT institute information commonly lists a minimum age of 14 years for relevant Craftsmen Training Scheme courses. Educational requirements vary: many trades require Class 10, while some accept Class 8.
Course duration can also vary, generally from six months to two years under the Craftsmen Training Scheme.
These are general examples, not universal eligibility conditions for every ITI or every trade. Check the admission notice for the specific institute and academic session.
Official information is available through the Directorate General of Training (dgt.gov.in) and the PM-SETU portal.
How to Check Whether Your ITI Is Included in PM-SETU
Students do not need to submit a separate personal application to become a PM-SETU beneficiary. They should first establish whether their institute is participating in the programme.
Follow these steps:
- Visit the official PM-SETU portal.
- Find the state-wise ITI information section.
- Select your State or Union Territory.
- Look for your institute and review the information available for its cluster.
- Contact the ITI administration to confirm the latest implementation status, available trades and admission arrangements.
If your institute is not listed or the information is unclear, contact the relevant State Directorate of Technical Education, Directorate of Training or ITI admission authority.
Do not rely on a third-party article alone to confirm that a campus has received equipment or started a new course.
Can Students Apply Online for the PM-SETU Scheme?
No separate individual PM-SETU application is described in the scheme’s institutional model.
PM-SETU funds and organises the upgrading of selected government ITIs. Students access its potential benefits through regular admission to an institute and the courses available there.
This means there is no general PM-SETU student registration form through which every applicant can claim a cash benefit.
Be careful with websites or social media posts claiming that students must pay a registration fee, submit bank details or provide an Aadhaar number to receive a PM-SETU payment.
Use the official government portal and State admission authorities to verify any claim. Normal ITI admission requirements may still include documents or identity verification, depending on the applicable rules.
PM-SETU Implementation Challenges: What Students Should Know
The scheme has an ambitious funding structure and a clear focus on industry-led training. However, approval of a large investment plan does not guarantee that the intended employment outcomes will follow automatically.
A May 2026 investigation by Careers360 reported that several States had faced difficulties attracting industry partners. It also described challenges involving the formation of Special Purpose Vehicles, participation by public sector companies and the practical responsibility of managing ITIs.
The government’s October progress update shows that the scheme has moved into a broader rollout and that more investment plans have been approved. Even so, several issues will need attention.
1. Finding the Right Industry Partners
Industry partners must be willing and able to participate in cluster management, training development and investment. This can be difficult where there are fewer large employers or where companies have limited experience managing educational institutions.
2. Turning Approved Plans Into Working Facilities
New laboratories, equipment and training programmes take time to implement. Students should distinguish between a cluster that has received approval and an institute where upgrades are already operational.
3. Reaching Students in Smaller Towns and Rural Areas
Some ITIs serve areas with fewer large industries. Creating strong employer connections in these locations may require additional planning and coordination.
4. Measuring Actual Employment Outcomes
Better equipment and updated courses are useful, but students ultimately need relevant skills and access to real employment opportunities.
Placement rates, apprenticeship opportunities, employer feedback and the quality of training will be important measures of the scheme’s success.
5. Making Training Accessible
The implementation process should also consider the training needs of women, disadvantaged communities and persons with disabilities. The availability of a course alone does not guarantee equal access to its benefits.
What Should Students and Parents Watch Next?
The next stage of PM-SETU will be important because the programme’s long-term value depends on how effectively approved plans are implemented.
Students and parents should look for:
- Updates on the formation and operation of cluster SPVs.
- Confirmation of when modern laboratories and equipment become available.
- Official announcements of new trades at individual ITIs.
- Opportunities for industry visits, apprenticeships and practical training.
- Published information about placements and employment outcomes.
- Updated cluster lists and implementation notices on official portals.
Rather than choosing an institute based only on the scheme’s name, compare the actual trades offered, the quality of workshops, instructor availability and the institute’s recent placement record.
Frequently Asked Questions About PM-SETU Scheme 2026
1. What is the full form of PM-SETU?
PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs.
2. When was the PM-SETU scheme launched?
The Union Cabinet approved the scheme on 7 May 2025. Prime Minister Narendra Modi launched it on 4 October 2025.
3. What is the total budget of PM-SETU?
The total outlay is ₹60,000 crore, comprising ₹30,000 crore from the Centre, ₹20,000 crore from States and ₹10,000 crore from industry.
4. How many ITIs will be upgraded under PM-SETU?
The scheme targets 1,000 government ITIs: 200 Hub ITIs and 800 Spoke ITIs. It also includes strengthening five National Skill Training Institutes.
5. Which ministry implements PM-SETU?
The Ministry of Skill Development and Entrepreneurship implements the scheme, with the Directorate General of Training playing a key role in vocational training and ITI coordination.
6. Can I apply for PM-SETU online?
There is no separate general student application for a PM-SETU cash benefit. Students should use normal ITI admission procedures and check whether their institute participates in the scheme.
7. Is PM-SETU a scholarship scheme?
No. PM-SETU is an institutional scheme to upgrade government ITIs and strengthen vocational training. It should not be confused with a scholarship or direct cash-transfer programme.
8. What is an Anchor Industry Partner?
An Anchor Industry Partner is the industry organisation that participates in developing and managing an ITI cluster under the scheme’s governance framework.
9. What is a Strategic Investment Plan?
A Strategic Investment Plan, or SIP, is a proposal for upgrading an ITI cluster. It sets out planned investments and interventions and is reviewed through the scheme’s approval process.
10. Which ITI clusters were approved on 16 October 2026?
The five clusters were Kataka in Odisha; Pune and Chhatrapati Sambhajinagar in Maharashtra; and Jammu and Srinagar in Jammu and Kashmir.
11. Which ITIs are included in the latest Odisha approval?
The Kataka cluster includes Government ITI Kataka as the Hub and government ITIs at Choudwar, Paradeep, Jajpur and Dhenkanal as Spokes.
12. Will every government ITI offer AI, robotics or EV courses?
No. The courses available depend on the institute’s approved trade list, infrastructure and implementation arrangements. Students should confirm availability locally.
13. Does PM-SETU guarantee a government job?
No. The scheme aims to improve vocational training and employability. It does not guarantee a government job, private-sector job or overseas placement.
14. Where can I find official PM-SETU updates?
Visit the official PM-SETU portal (pm-setu.skillindiadigital.gov.in), the Press Information Bureau (pib.gov.in/)and the Ministry of Skill Development and Entrepreneurship (https://www.msde.gov.in).
Final Takeaway
PM-SETU is an important effort to modernise India’s government ITIs through better infrastructure, industry participation and training that reflects changing employment needs.
The first year brought progress in identifying institutes, organising clusters and approving investment plans. The five plans announced on 16 October 2026 add another milestone, including a new cluster covering five government ITIs in Odisha.
But the scheme’s real success will depend on what happens inside the institutes: whether equipment becomes available, instructors receive effective training, new courses meet local demand and students gain stronger employment opportunities.
If you are planning to join an ITI, check the institute’s current courses and facilities before making a decision. If you are already enrolled, ask your administration about the cluster’s implementation schedule and the practical benefits expected for students.
Disclaimer: This is an independent informational article and is not affiliated with any government department. Scheme details and implementation status may change. Verify current information through official government sources before making admission or career decisions.
