Union cabinet approves Rs 60,000 crore ITI upgradation scheme
Prime Minister Narendra Modi-led cabinet, on Wednesday, also gave its go ahead to the setting up of five National Centres of Excellence for Skilling as a centrally sponsored scheme to be funded by Centre, states and the private sector. The scheme will focus on upgradation of 1,000 government ITIs in hub and spoke arrangement with industry aligned revamped trades and is expected to impart skills training to two million youth over the next five years.
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The union cabinet, on Wednesday, gave its go ahead to the Rs 60,000 crore 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 to be funded by Centre, states and the private sector.Under the scheme, the government expects to impart skills training to two million youth over a five-year period through courses that address the human capital needs of industries.The scheme is aimed at creating a pipeline of skilled workers aligned with industry demand, thereby addressing skill shortages in high-growth sectors such as electronics, automotive, and renewable energy, aligning with the Prime Minister's vision of Viksit Bharat , with skilling as a key enabler to meet both current and future industry needs.The scheme, announced in Budget 2024-25 and Budget 2025-26, will see the central government contributing Rs 30,000 crore, states contributing Rs 20,000 crore and industry contributing Rs 10,000 crore, with co-financing to the extent of 50% of central share by the Asian Development Bank and the World Bank, equally, the government said in a statement.As per the statement, the scheme will focus on upgradation of 1,000 government ITIs in hub and spoke arrangement with industry aligned revamped trades (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.'The Scheme aims to position existing ITIs as government-owned, industry-managed aspirational institutes of skills, in collaboration with state governments and industry,' it said.'The scheme will focus on ensuring alignment between local workforce supply and industry demand, thereby facilitating industries, including MSMEs, in accessing employment-ready workers,' it added.India has 14,615 ITIs across the country with 1.44 million candidates enrolled.According to the statement, 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,' it said.'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,' it added.Under the scheme, infrastructure upgradation for improved training of trainers (ToT) facilities will be undertaken in five National Skills Training Institutes (NSTIs) at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana.Additionally, pre-service and in-service training will be provided to 50,000 trainers, it added.
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