About this skills scheme
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.
Benefits at a glance
| Scheme name | 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 (PMSETU2) |
|---|---|
| Launched by | Ministry Of Skill Development And Entrepreneurship |
| Benefit type | Cash (money paid to your bank account) |
| Category | Skills |
| Level / State | Central · All India |
| Official portal | msde.gov.in (see References at the end) |
Key facts
| Scheme type | Central Sector Scheme |
|---|---|
| Scheme for | Infra |
| Application mode | Offline |
| Last date | Not given in the official listing |
| DBT (direct bank transfer) | No |
| Age | 5 to 80 years |
Who can apply (quick check)
- 👤All genders
- 🎂Age 5 to 80 years
- 📝Offline
Quick check from official data. Full conditions are in the Eligibility section.
What you receive
- Infrastructure Upgradation of 5 NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana — Estimated Total Cost Rs. 1,00,00,00,00,000 (Rs. 1,000 crore), i.e., Rs. 2,00,00,00,000 (Rs. 200 crore per NSTI), including civil infrastructure, equipment, and support facilities.
- Operational and Workforce Cost — Rs. 1,00,00,00,000 (Rs. 100 crore) total (Rs. 20,00,00,000 / Rs. 20 crore per NSTI).
- Dedicated Training of Trainers (ToT) Provision — Rs. 4,00,00,00,000 (Rs. 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.
Who qualifies
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 Rs. 5,00,00,00,000 (Rs. 500 crore).
- The applicant should have a minimum employee strength of 500.
- The applicant should commit a minimum industry contribution of Rs. 40,00,00,000 (Rs. 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.
Who is not eligible
<br>
Papers to keep ready
A. For Lead Industry Partner (LIP) Application:
- Expression of Interest (EoI) Submission
- Request for Proposal (RFP) Response Document
- Annual Turnover Certificate (to demonstrate minimum Rs. 5,00,00,00,000 / Rs. 500 crore turnover)
- Employee Strength Documentation (to demonstrate a minimum of 500 employees)
- Financial Contribution Commitment Letter (for Rs. 40,00,00,000 / Rs. 40 crore per NSTI)
- Strategic Investment Plan (SIP) Proposal (as per Template in Annexure V.
- Technical Proposal (demonstrating technical expertise and long-term commitment)
- Financial Proposal (for Quality and Cost-Based Selection evaluation)
- Scheduling of Interventions Document
- Consortium Agreement (in case applying as a consortium)
- Memorandum of Understanding (MoU) / Agreement for collaboration and upgradation of NSTI.
- Declaration of No Conflict of Interest (for nominated Governing Body members).
B. For Trainees Applying to NSTI Programmes (as per course eligibility):
- Class 8th / 10th / 12th Mark Sheet / Pass Certificate (as per course requirement)
- Graduation / Post-Graduation Certificate (for PG Certificate courses)
- CTS (ITI) Certificate / National Apprenticeship Certificate (NAC) / Diploma / Degree Certificate (for CITS programmes)
- Identity Proof
- Address Proof
- Recent Passport-Size Photographs
Note: Specific application documents for trainees will be defined by individual NSTIs as per the courses offered under the upgraded scheme.
Registration walkthrough
Offline
A. For Lead Industry Partner (LIP):
Step 1: The Directorate General of Training (DGT), MSDE, initiates the process for selecting a Lead Industry Partner (LIP) for each NSTI through a transparent and competitive bidding process.
Step 2: DGT issues an Expression of Interest (EoI) inviting industry to express interest and submit preliminary proposals for participation in the scheme. (Onboarding through EoI to commence within T+60 days of guidelines approval by NSC)
Step 3: Based on the responses received, DGT prepares and floats a detailed Request for Proposal (RFP) after seeking due approvals from the National Steering Committee (NSC).
Step 4: The selection process follows the Quality and Cost-Based Selection (QCBS) methodology. DGT finalises the pre-qualification requirements and technical and financial evaluation criteria.
Step 5: Industry partner submits the bid (individually or as lead member of a consortium) with all required documents, including SIP proposal and financial commitment.
Step 6: Bids are evaluated by a committee chaired by the Deputy Director General (DDG) / Joint Secretary (Schemes), with representation from the Regional Directorate of Skill Development and Entrepreneurship (RDSDE) and the concerned NSTI. Evaluation parameters include demonstrated technical expertise, long-term commitment, quality of SIP, scheduling of interventions, and proposed financial contribution.
Step 7: The shortlisted proposal is submitted to the National Steering Committee (NSC) for final approval.
Step 8: Upon approval, the selected industry partner enters into a formal agreement with DGT to lead the IMC. (Final selection and approval of SIP within T+105 days)
Step 9: The LIP forms the Institutional Management Committee (IMC) / Society and submits the initial draft Strategic Investment Plan (SIP) to the NSC. (Within T+90 days)
Step 10: Following NSC approval of the SIP, implementation begins as per the approved SIP and Annual Operational Plans (AOPs).
B. For Trainees:
Eligible candidates (Class 10 pass-outs and above, working professionals, graduates, postgraduates) may apply for CTS, CITS, Short-term courses, Diploma, Advanced Diploma, or PG Certificate programmes offered at the upgraded NSTIs located at:
- NSTI Bhubaneswar
- NSTI Chennai
- NSTI Hyderabad (NSTI-R, NSTI-V, NSTI-W)
- NSTI Kanpur
- NSTI Ludhiana
Application procedures, course schedules, and admission details for trainees will be provided by the respective IMCs of each NSTI as per the courses offered under the upgraded framework.
Frequently asked questions
What is PM SETU Component II and which institutes are covered under this scheme?
PM SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) Component II is a scheme by the Ministry of Skill Development and Entrepreneurship (MSDE), Government of India, for the capacity augmentation of 5 National Skill Training Institutes (NSTIs) and setting up of 5 National Centres of Excellence for Skilling. The 5 NSTIs covered are located at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.
What is the total financial outlay of Component II and how is the cost shared?
The total outlay for Component II is Rs. 1,100 crore (Rs. 1,500 crore as mentioned in scheme overview, with Rs. 1,100 crore detailed in financial outlay and Rs. 400 crore for ToT). The cost sharing follows a 4:1 ratio, with 80% (Rs. 880 crore) contributed by the Central Government and a minimum of 20% (Rs. 220 crore) by the Industry Partner. The ToT (Training of Trainers) provision of Rs. 400 crore is shared equally in a 50:50 ratio between the Central Government and Industry Partners.
Who can apply as a Lead Industry Partner (LIP) and what are the minimum eligibility criteria?
Any industry partner — individually or as the lead member of a consortium — can apply, provided they meet the following minimum eligibility criteria:
- Minimum annual turnover of Rs. 500 crore
- Minimum employee strength of 500
- Minimum committed industry contribution of Rs. 40 crore per NSTI over a 5-year period
In the case of a consortium, the turnover and employee strength requirements must be fulfilled exclusively by the Lead Industry Partner.
How is the Lead Industry Partner selected?
The selection is done through a transparent and competitive bidding process initiated by the Directorate General of Training (DGT). The process begins with the issuance of an Expression of Interest (EoI), followed by a detailed Request for Proposal (RFP). Selection follows the Quality and Cost Based Selection (QCBS) methodology. Bids are evaluated by a committee chaired by the Deputy Director General (DDG) / Joint Secretary (Schemes), and the final selection is subject to approval by the National Steering Committee (NSC).
What types of courses will be offered at the upgraded NSTIs?
The upgraded NSTIs will offer the following programmes [Annexure III]:
- CTS (National Trade Certificate): 1-2 years, NSQF Level 3.5/4
- CITS (National Craft Instructor Certificate): 1 year, NSQF Level 4/4.5
- Short-term Courses on Advanced Skilling: Up to 6 months
- Diploma: 2-3 years, NSQF Level 4.5
- Advanced Diploma (Technical and Work-based): 2-3 years, NSQF Level 5.5/6
- PG Certificate: 6 months to 1 year
Additionally, up to 20 long-term trades (including a Centre of Excellence), 10 short-term trades, and upgradation of 20 existing courses will be introduced.
What specialized academic centres will be established at each upgraded NSTI?
Each upgraded NSTI will house the following specialized academic centres [Annexure II]:
- Center for Industrial Collaboration (CIC) — Industry-led training facilities and placement support
- National Centre of Excellence (NCoE) for Skilling — State-of-the-art training centre with global partnership focusing on emerging sectors
- Centre for TVET Practitioners Development — Trainer upskilling and pedagogical development
- Centre for Research, Innovation and Entrepreneurship (CRIE) — Entrepreneurship development, market research, and incubation support
How is the fund disbursement structured under the scheme?
The disbursement is performance-linked and milestone-based:
- Year 1: Up to 10% of total outlay (including industry share) as initial advance upon SIP approval by NSC; additional 10% upon onboarding of Global Partner.
- Years 2 to 5: Remaining 80% disbursed in annual tranches, released in two equal instalments (50% each):
- First Instalment released upon ≥75% utilisation of previous year's funds, AOP approval, and ≥80% of previous year's KPI targets achieved.
- Second Instalment released upon ≥50% of current year's KPI targets achieved, industry's 20% share deposited in escrow, and reporting compliance.
All fund releases are made to NSTI-IMC's escrow accounts mapped with the Public Financial Management System (PFMS) portal.
Who manages the implementation of the scheme at the institute level?
An Institutional Management Committee (IMC), constituted as a registered Society, is established at each NSTI. The IMC is the primary implementing body at the institute level and operates through a designated Governing Body. The Governing Body comprises 9 to 15 members including:
- A Chairperson nominated by the Lead Industry Partner
- 2 or more Central Government nominees (by DGT/MSDE)
- 1 or more State Government nominee
- 2 or more Industry persons with technical expertise
- Director of the Institute (Ex-officio Member Secretary)
- Industry Association representatives (FICCI, CII, Sector Skills Councils, etc.)
- Academia representatives
At the national level, the National Steering Committee (NSC), chaired by the Secretary, MSDE, provides overall governance, supported by the National Project Monitoring Unit (NPMU).
What is the role of the Global Partner in the scheme?
The Global Partner is onboarded by the IMC of each NSTI with strategic guidance from the NSC to support the establishment of the National Centre of Excellence (NCoE). The Global Partner's responsibilities include:
- Advanced curriculum design aligned with international benchmarks and global standards
- Aligning ITI certification frameworks with internationally recognised standards
- Designing and delivering international training programmes for trainers and officials
- Establishment of robust skills certification frameworks and assessment systems
- Periodic review and evaluation of training programmes
- Introduction of global best practices, tools, and operational benchmarks
- Support for foreign language training programmes based on sectoral and regional demand
A dedicated 10% of the total project cost is released upon successful onboarding of a Global Partner.
Are industry contributions eligible for CSR exemption, and who owns the assets created under the scheme?
Yes, funds contributed by industry under the scheme are eligible for CSR (Corporate Social Responsibility) exemption. The industry's 20% contribution must be made in cash and deposited directly into the NSTI's dedicated escrow account — in-kind support is welcome but does not count towards fulfilling the minimum required share. The ownership of all assets, both existing and those procured or established by the IMC during the scheme, shall remain with the respective NSTI, thereby ensuring continuity and sustained availability of training infrastructure.
References and official sources
Apply only on the official portal. Nothing is applied for on this site, and applying is free.
- Guidelines (PDF) msde.gov.in
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