New Delhi, May 7
The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the national scheme for Industrial Training Institute (ITI) upgradation and the setting up of five National Centres of Excellence for Skilling as a centrally-sponsored scheme, in a major step towards transforming vocational education in the country.
The announcement for implementing the scheme was made under Budget 2024-25 and Budget 2025-26, with an outlay of Rs 60,000 crore, comprising a Central share of Rs 30,000 crore, state share to the tune of Rs 20,000 crore and industry share of Rs10,000 crore. A co-financing to the extent of 50 per cent of the Central share will be done equally by the Asian Development Bank and the World Bank.
The scheme will focus on upgradation of 1,000 Government ITIs in hub and spoke arrangement with industry aligned revamped courses and capacity augmentation of five National Skill Training Institutes (NSTIs), including setting up of five National Centres of Excellence for Skilling in these institutes, according to an official statement.
The scheme aims to position existing ITIs as government-owned, industry-managed aspirational institutes for skills, in collaboration with state governments and industry. Over a five-year period, 20 lakh youth will be skilled through courses that address the human capital needs of industries. The scheme will focus on ensuring alignment between local workforce supply and industry demand, thereby facilitating industries, including MSMEs, in accessing employment-ready workers, the statement explained.
The financial assistance provided under various schemes in the past was suboptimal to meet the full upgradation needs of ITIs, particularly in addressing growing investment requirements for infrastructure upkeep, capacity expansion, and the introduction of capital-intensive, new-age trades.
To overcome this, a need-based investment provision has been kept under the proposed scheme, allowing flexibility in fund allocation based on the specific infrastructure, capacity, and trade-related requirements of each institution.
For the first time, the scheme seeks to establish deep industry connect in planning and management of ITI upgradation on a sustained basis. The scheme will adopt an industry-led Special Purpose Vehicle (SPV) model for an outcome-driven implementation strategy, making it distinct from previous efforts to improve the ITI ecosystem.
Under the scheme, infrastructure upgradation for improved Training of Trainers (ToT) facilities will be undertaken in five NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana. Additionally, pre-service and in-service training will be provided to 50,000 trainers.
By addressing long-standing challenges in infrastructure, course relevance, employability, and the perception of vocational training, the scheme aims to position ITIs at the forefront to cater to skilled manpower requirement, aligned to the nation’s journey to becoming a global manufacturing and innovation powerhouse.
It will create a pipeline of skilled workers aligned with industry demand, thereby addressing skill shortages in high-growth sectors such as electronics, automotive, and renewable energy. In sum, the proposed scheme aligns with Prime Minister Narendra Modi’s vision of 'Viksit Bharat', with skilling as a key enabler to meet both current and future industry needs, the statement added.
