PMSETU2

The schemes aims to develop 5 NSTIs as premier National Centres of Excellence for Skilling. Through this scheme, infrastructure upgradation, new trades, and trainer development are provided to the 5 NSTIs and their stakeholders.

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" by the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India, aims to develop five (5) National Skill Training Institutes as premier institutions for skilling and trainer development by strengthening their industry alignment and engagement, institutional governance, physical infrastructure, quality of training, learning outcomes, and market relevance of courses. Through this scheme, upgradation of infrastructure (modern labs, residential facilities, renovated or newly constructed hostels), introduction of up to 20 long-term trades (including a Centre of Excellence), 10 short-term trades, upgradation of 20 existing courses, Diploma and Advanced Diploma-level certifications with multiple entry and exit options, and pre-service and in-service training of 50,000 instructors in technical and pedagogical skills are provided to the five NSTIs located at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, along with their trainees, working professionals, graduates, postgraduates, and ITI instructors. The scheme is implemented by the Directorate General of Training (DGT), MSDE, through an Institutional Management Committee (IMC) – constituted as a registered Society – at each NSTI, with strategic oversight from the National Steering Committee (NSC) and operational support from the National Project Monitoring Unit (NPMU).

> Objectives:

• Introduce up to 20 long-term trades (including a Centre of Excellence), 10 short-term trades, and upgrade 20 existing courses, supported by the upgradation of infrastructure, including modern labs, residential facilities, and renovated or newly constructed hostels.
• Identify Global Partners and sectors for the establishment of National Centres of Excellence in Skilling, supporting curriculum design, training of trainers, skills certification frameworks, and periodic reviews.
• Provide avenues for continuous learning opportunities for the existing workforce engaged in industrial and manufacturing sectors.
• Offer redesigned and upgraded CITS programmes along with Diploma and Advanced Diploma-level certifications with multiple entry and exit options for Class 10 pass-outs and above.
• Create and anchor a research ecosystem within each campus for continuous mapping of the job market, enabling evidence-based skill gap analysis.
• Establish robust industry engagement mechanisms, including dynamic apprenticeship programmes and upskilling/re-skilling programmes for the in-employment workforce.
• Deliver specialised training programs for ITI principals, administrators, and vocational trainers, with pre-service and in-service training of 50,000 instructors.

> A. For Lead Industry Partner (LIP) / Consortium:

• The applicant should be an industry partner applying individually or as the lead member of a consortium.
• The applicant should have a minimum annual turnover of ₹5,00,00,00,000 (₹500 crore).
• The applicant should have a minimum employee strength of 500.
• The applicant should commit a minimum industry contribution of ₹40,00,00,000 (₹40 crore) per NSTI over a five-year period.
• In the case of a consortium, the prescribed minimum requirements of annual turnover and employee strength shall be fulfilled exclusively by the Lead Industry Partner.
• The Chairperson nominated by the LIP must be an active employee of the LIP and should be at a senior leadership level.

> B. For Trainees / Students of Upgraded NSTI Programmes:

• The applicant should be a Class 10 pass-out and above.
• The applicant may be a working professional, graduate, or postgraduate seeking higher-level skilling programmes.

> Course-Specific Eligibility (Annexure III):

• CTS (National Trade Certificate): The applicant should have passed Class 8th, 10th, or 12th, depending on the trade.
• CITS (National Craft Instructor Certificate): The applicant should have completed CTS (ITI), NAC (National Apprenticeship Certificate), Diploma, or Degree.
• Short-term Courses on Advanced Skilling: Eligibility depends on industry requirements.
• Diploma: The applicant should have passed Class 10th or equivalent.
• Advanced Diploma (Technical and Work-based): The applicant should have passed Class 12th or equivalent.
• PG Certificate: The applicant should be a Graduate or Post-Graduate.

> Reservation / Inclusion:

• The Governing Body of each IMC shall include at least one female member to ensure diversity and inclusivity.
• The Strategic Investment Plan (SIP) shall include specific activities related to inclusion and accessibility, enhancing participation of women, SC, ST, and PwD (Persons with Disabilities).
• Female enrolment target: 30% of enrolled students by end of 5th year.

• Infrastructure Upgradation of 5 NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana – Estimated Total Cost ₹1,00,00,00,00,000 (₹1,000 crore), i.e., ₹2,00,00,00,000 (₹200 crore per NSTI), including civil infrastructure, equipment, and support facilities.
• Operational and Workforce Cost – ₹1,00,00,00,000 (₹100 crore) total (₹20,00,00,000 / ₹20 crore per NSTI).
• Dedicated Training of Trainers (ToT) Provision – ₹4,00,00,00,000 (₹400 crore) for pre-service and in-service training of ITI trainers across all 5 NSTIs, including foreign training, shared equally between the Central Government and Industry Partners in a 50:50 ratio.
• Introduction of up to 20 long-term trades (including a Centre of Excellence), 10 short-term trades, and upgradation of 20 existing courses.
• Modern Labs, Residential Facilities, and Renovated or Newly Constructed Hostels at each NSTI.
• Diploma and Advanced Diploma-level certifications with multiple entry and exit options for Class 10 pass-outs and above, including working professionals, graduates, and postgraduates.
• Establishment of Specialised Academic Centres at each 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)

• Pre-service and In-service Training of 50,000 instructors in technical and pedagogical skills.
• CSR Exemption for funds contributed by the industry under the scheme.
• Autonomy to Determine and Charge Student Fees for newly developed courses (excluding government-funded schemes such as CTS, CITS).
• Revenue-Generating Services, including production centres, incubation centres, and maker spaces on a chargeable basis, with revenue reinvested into skill development.

> Mode of Disbursement:

• All fund releases are made to the NSTI-IMC's escrow bank account opened in Scheduled Commercial Banks.
• Industry contributions are deposited directly into Escrow Accounts.
• Central Government funds are released to the Escrow Accounts as per extant rules.
• Escrow accounts opened by IMC are mapped with the Public Financial Management System (PFMS) portal.

> Frequency of Disbursement:

• Year 1: Initial advance of up to 10% of the total approved project outlay (including industry share) released upon Strategic Investment Plan (SIP) approval by NSC. Additional 10% released upon the onboarding of Global Partner. No second instalment in Year 1.- Years 2 to 5: Remaining 80% disbursed in annual tranches, released in two equal instalments (50% each) every year, contingent on specific milestones:
• First Instalment: ≥75% utilisation of previous year's funds, AOP approved, ≥80% of previous year's KPI targets achieved. - Second Instalment: ≥50% of current year's KPI targets achieved, industry's 20% share deposited in escrow, reporting compliance.

> Validity: Five-year period from FY 2025-26 to FY 2029-30.