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

₹10000.0 Cr

1. Infrastructure Upgradation of 5 NSTIs at Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana — Estimated Total Cost ₹1,00,00,00,00,000 (₹1,000 crore), i.e., ₹2,00,00,00,000 (₹200 crore per NSTI), including civil infrastructure, equipment, and support facilities.

₹100.0 Cr

1. Operational and Workforce Cost — ₹1,00,00,00,000 (₹100 crore) total (₹20,00,00,000 / ₹20 crore per NSTI).

₹400.0 Cr

1. Dedicated Training of Trainers (ToT) Provision — ₹4,00,00,00,000 (₹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.

1. Introduction of up to 20 long-term trades (including a Centre of Excellence), 10 short-term trades, and upgradation of 20 existing courses.

1. Modern Labs, Residential Facilities, and Renovated or Newly Constructed Hostels at each NSTI.

1. 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.

1. 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)

1. Pre-service and In-service Training of 50,000 instructors in technical and pedagogical skills.

1. CSR Exemption for funds contributed by the industry under the scheme.

1. Autonomy to Determine and Charge Student Fees for newly developed courses (excluding government-funded schemes such as CTS, CITS).

1. 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.