The PM SETU Scheme 2026 Latest Update is important for ITI students, vocational training aspirants and industries looking for skilled workers. The Government of India’s flagship ITI modernisation programme has completed one year, with significant progress in identifying institutions and developing industry-led training clusters.
PM-SETU stands for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs. The scheme was launched on October 4, 2025, with the objective of transforming Government Industrial Training Institutes (ITIs) into modern, industry-aligned training institutions.
According to the latest official update released by the Press Information Bureau, 850 ITIs have now been identified under the scheme, including 172 Hub ITIs and 678 Spoke ITIs.
PM SETU Scheme 2026 Latest Update
The latest progress shows that PM-SETU has moved from the planning stage toward implementation.
As of the one-year update:
- 850 Government ITIs identified
- 172 Hub ITIs
- 678 Spoke ITIs
- 14 ITI clusters approved
- 36 States and Union Territories have identified clusters and created dedicated State budget heads
- 35 States/UTs have constituted State Steering Committees
- 26 States/UTs have started the process of inviting industry participation.
The scheme ultimately aims to transform 1,000 Government ITIs through a Hub-and-Spoke model.
What Is PM SETU Scheme?
PM-SETU is designed to improve the quality and relevance of vocational education in Government ITIs. Instead of focusing only on traditional classroom training, the programme aims to connect ITI training more closely with actual industry requirements.
The scheme has a total financial outlay of ₹60,000 crore, consisting of:
- ₹30,000 crore from the Central Government
- ₹20,000 crore from State Governments
- ₹10,000 crore from industry.
The initiative focuses on modern infrastructure, industry participation, new-age courses and improved employment-oriented training.
1,000 ITIs Under Hub-and-Spoke Model
The main component of PM-SETU targets 1,000 Government ITIs.
These are planned as:
- 200 Hub ITIs
- 800 Spoke ITIs
A Hub ITI can support several Spoke ITIs by sharing advanced infrastructure, training resources, modern equipment and other facilities.
The model is intended to make high-quality vocational training more accessible while creating stronger connections between ITIs and industries.
What Benefits Will ITI Students Get?
The PM SETU Scheme can significantly change the training environment for students in selected Government ITIs.
Modern Equipment and Laboratories
Selected ITIs are expected to receive upgraded workshops, laboratories, classrooms and modern training equipment.
Industry-Aligned Courses
Training programmes will increasingly reflect emerging workforce requirements. The scheme promotes new-age skills and occupations so that students can develop skills relevant to changing industries.
Better Industry Exposure
Industry participation is a major feature of PM-SETU. Industry partners can contribute to curriculum development, training delivery, infrastructure and industry exposure.
Improved Employment Pathways
The objective is to make students more employable by reducing the gap between ITI training and workplace requirements. However, PM-SETU does not mean that every student will automatically receive a government job.
Industry-Led PM SETU Model
One of the major changes under PM-SETU is the proposed industry-led governance structure.
For upgraded ITI clusters, Special Purpose Vehicles (SPVs) are planned with 51% ownership for the Anchor Industry Partner, while the Central and State Governments hold 24.5% each.
These SPVs can work on areas such as curriculum, infrastructure, training delivery and industry exposure according to local industry requirements.
This public-private partnership approach is intended to make ITI training more responsive to actual employment demand.
PM SETU and New-Age Skills
PM-SETU also supports the introduction of training related to emerging technologies and occupations. This is important because industries are increasingly demanding workers with digital and advanced technical skills.
Depending on the upgraded ITI and local industry demand, students may get exposure to modern technologies alongside traditional vocational trades.
The scheme also includes capacity augmentation of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana, including National Centres of Excellence and advanced trainer development.
Is PM SETU a Direct Money Scheme for Students?
No. This is an important point.
PM-SETU is primarily an ITI upgradation and skill-development scheme. It is not a scheme under which every ITI student receives a fixed cash payment.
Its main focus is:
- Modern ITI infrastructure
- Better equipment
- Industry-aligned training
- New-age courses
- Industry partnerships
- Better vocational training
- Improved employability
Students should therefore check whether their particular Government ITI is included in a PM-SETU cluster rather than assuming that every ITI receives the same benefits.
PM SETU Scheme 2026: What Happens Next?
The latest progress indicates that the government is continuing the identification of ITIs, cluster development and industry participation. The official PM-SETU portal is also publishing State/UT cluster information, RFPs and implementation updates.
The long-term target remains the transformation of 1,000 Government ITIs, so the programme is expected to continue expanding after its first year.
Conclusion
The PM SETU Scheme 2026 Latest Update shows substantial progress after one year of implementation. The government has identified 850 ITIs—172 Hubs and 678 Spokes—and approved 14 ITI clusters.
With a ₹60,000 crore outlay, PM-SETU aims to modernize Government ITIs, introduce industry-relevant training and strengthen connections between vocational education and employment.
For ITI students, the most important potential benefits are modern laboratories, better equipment, industry exposure, updated courses and stronger employment-oriented training. Candidates should follow official PM-SETU and State ITI updates to find out whether their institute is included in the programme.