ITI National Scheme Approved: Cabinet Approves Upgradation and Establishment of 5 Centres of Excellence

The Cabinet has approved the National Scheme for the upgradation of Industrial Training Institutes (ITIs) and the establishment of five National Centres of Excellence for Skilling.

ITI National Scheme Approved

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Scheme for the upgradation of Industrial Training Institutes (ITIs) and the establishment of five National Centres of Excellence (NCOE) for Skilling. This scheme, announced in the 2024-25 and 2025-26 Budgets, will be implemented as a Centrally Sponsored Scheme with a total outlay of INR 60,000 crore.

The funding will be shared as follows: INR 30,000 crore from the central government, INR 20,000 crore from the states, and INR 10,000 crore from the industry. Additionally, 50% of the central share will be co-financed equally by the Asian Development Bank and the World Bank.

Revamping ITIs: Upgradation of 1,000 Government Institutes Aligned with Industry Needs

The scheme will focus on upgrading 1,000 Government ITIs in a hub-and-spoke model, with industry-aligned, revamped courses. It will also enhance the capacity of five National Skill Training Institutes (NSTIs), including the establishment of five National Centres of Excellence for Skilling within these institutes. The initiative aims to transform existing ITIs into government-owned, industry-managed institutions of excellence, in partnership with State Governments and industry stakeholders.

Over the next five years, the scheme plans to skill 20 lakh youth through courses tailored to meet the human capital needs of various industries. It will also ensure better alignment between the local workforce and industry demands, helping industries, including MSMEs, access a pool of employment-ready workers.

Previous financial assistance for ITI upgradation was insufficient to meet growing needs, especially for infrastructure, capacity expansion, and new-age trades. The proposed scheme introduces a need-based investment model, allowing flexible fund allocation tailored to each ITI’s specific requirements. For the first time, it emphasises deep industry involvement in the planning and management of ITI upgradation. An industry-led Special Purpose Vehicle (SPV) model will drive outcome-based implementation, setting this scheme apart from past efforts.

The scheme will upgrade infrastructure for enhanced Training of Trainers (ToT) facilities at five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. It will also provide pre-service and in-service training to 50,000 trainers. By addressing long-standing challenges in infrastructure, course relevance, employability, and the perception of vocational training, the scheme aims to position ITIs as key players in meeting the nation's skilled workforce needs, supporting India’s goal of becoming a global manufacturing and innovation hub.

Read More

• Sona College of Technology Reports 82% Placement in Core Engineering Disciplines
• IIT Roorkee Hosts National Dialogue on Natural Hazards and Resilience in the Himalayas