Government Approves Rs 60000 Crore National Scheme to Upgrade ITIs and Set Up Skill Excellence Centres

New Delhi May 8
In a landmark move to revamp Indias vocational education system, the Union Cabinet chaired by Prime Minister Narendra Modi has approved a Rs 60000 crore scheme focused on the upgradation of 1000 government Industrial Training Institutes ITIs and the establishment of five National Centres of Excellence for Skilling.
 

Key Highlights of the Scheme

• The scheme will be implemented as a centrally sponsored program as outlined in the Union Budgets of 2024–25 and 2025–26

• The funding will include

  • Rs 30000 crore from the Centre

  • Rs 20000 crore from state governments

  • Rs 10000 crore from industry stakeholders

  • 50 percent of the Centres share will be co-financed by the Asian Development Bank and the World Bank

Vision Industry-Led Aspirational ITIs

The initiative aims to transform existing ITIs into government-owned but industry-managed aspirational training hubs It adopts a hub-and-spoke model with modern industry-aligned trades and enhanced capacity in collaboration with the private sector and state authorities

According to the official statement the scheme targets skilling 20 lakh youth over the next five years addressing the workforce needs of emerging and fast-growing sectors like electronics electric vehicles and renewable energy

National Skill Training Institutes NSTIs to Be Upgraded

Five key NSTIs in Bhubaneswar Chennai Hyderabad Kanpur and Ludhiana will be modernized to function as centres for advanced Training of Trainers ToT Around 50000 trainers are expected to undergo pre-service and in-service training under this plan

Addressing Long-standing Gaps in Vocational Training

Past initiatives were limited in scale and unable to meet the growing demands for capital investment and modern infrastructure This new scheme introduces need-based flexible funding tailored to the unique infrastructure capacity and trade-specific needs of each ITI

It also introduces a robust Special Purpose Vehicle SPV model driven by the industry to ensure outcome-oriented and sustainable execution of the plan

Skilling as a Catalyst for Viksit Bharat

This ambitious scheme aligns with the Prime Ministers vision of Viksit Bharat Developed India by 2047 positioning skilling as a strategic pillar of economic development and industrial competitiveness

Since 2014 the ITI network has grown significantly with a 47 percent increase bringing the total to 14615 ITIs and 1440 lakh student enrolments However challenges in infrastructure outdated course content and limited aspirational value have hindered the full potential of vocational education

This program seeks to reimagine vocational training to make it future-ready relevant and respected ultimately creating a steady pipeline of industry-ready skilled professionals across India