The Ministry of Skill Development and Entrepreneurship has signed shareholders’ agreements to upgrade nine government Industrial Training Institutes (ITIs) in Surat, Gujarat and Visakhapatnam, Andhra Pradesh. The partnership is between the Directorate General of Training, the two state governments, and ArcelorMittal Nippon Steel India (AM/NS India), with an approved investment of approximately ₹440 crore. This development marks a key milestone in the implementation of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme.
Key facts
- Five government ITIs in Surat, Gujarat will be upgraded with ₹240 crore investment
- Four government ITIs in Visakhapatnam, Andhra Pradesh will be upgraded with ₹200 crore investment
- Total approved investment across both clusters: ₹440 crore
- AM/NS India will hold 51% equity stake in Special Purpose Vehicles managing the clusters
- Government of India and respective state governments will each hold 24.5% equity participation
- This represents one of the largest industry commitments under PM-SETU from a total approved investment of ₹3,446 crore across 14 Strategic Investment Plans
- Academic partner: New Age Makers’ Institute of Technology (NAMTECH)
What is PM-SETU?
The Pradhan Mustri Skilling and Employability Transformation through Upgraded ITIs is a flagship government scheme with a total outlay of ₹60,000 crore. It aims to transform India’s vocational education system by building partnerships with industries and carrying out institutional reforms. The scheme targets the upgradation of 1,000 government ITIs across the country and strengthening of five National Skill Training Institutes.
How the partnership will work
Special Purpose Vehicles (SPVs) will be established as separate entities to manage the upgradation and ongoing operations of the ITI clusters in each location. These SPVs will oversee the implementation of approved Strategic Investment Plans. AM/NS India, a major steel manufacturer, will provide its manufacturing expertise and industry knowledge, while its academic partner NAMTECH will handle curriculum development, training reforms, faculty training and academic innovation.
Planned improvements to ITIs
The upgradation will include modernisation of training workshops and laboratories with new equipment and technology. New trades aligned with current industry demands will be introduced, and existing courses will be updated to match emerging sectoral requirements. The scheme also focuses on strengthening instructor capabilities through dedicated training programmes and expanding practical, hands-on learning for trainees. These changes aim to improve the quality of training, make graduates more employable, and ensure they are ready for industrial roles.
Why this matters for vocational education
India recently secured a place among the top 10 countries at the WorldSkills Competition held in Shanghai, a global benchmark for vocational training quality. The Ministry views upgraded ITIs under PM-SETU as potential centres of excellence that can nurture future world-class skilled workers. By combining government funding with private sector expertise, the scheme aims to bridge the gap between training imparted in ITIs and actual industry requirements, improving outcomes for thousands of trainees annually.
What this means for you
If you are a student seeking vocational training in Surat or Visakhapatnam, your ITI will gain access to modern facilities, updated courses in emerging technologies, and better-trained instructors. This should improve your chances of finding employment after completing your course. If you work in manufacturing or related sectors in these cities, the scheme may help create a pipeline of better-skilled workers for local industries. If you are studying at other government ITIs, this partnership model demonstrates how the scheme intends to improve vocational education quality nationwide.