The PM SETU 850 ITIs Transformation 2026 is a major development in India’s vocational education and skill-development sector. The Government of India is transforming selected Government Industrial Training Institutes (ITIs) into modern, industry-aligned institutions through the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme.
PM-SETU was launched on October 4, 2025, with a total financial outlay of ₹60,000 crore. The scheme aims to improve ITI infrastructure, introduce industry-relevant courses, strengthen industry participation and improve employment-oriented vocational training.
850 ITIs Identified for Transformation
The biggest latest development is that 850 Government ITIs have been identified for transformation under PM-SETU.
These 850 institutions include:
- 172 Hub ITIs
- 678 Spoke ITIs
The overall target of the scheme remains 1,000 Government ITIs, comprising 200 Hub ITIs and 800 Spoke ITIs. The latest progress therefore represents a major step toward the scheme’s full target.
The government has also approved Strategic Investment Plans (SIPs) for 14 ITI clusters, involving an investment of approximately ₹3,446 crore.
What Is PM SETU ITI Transformation?
PM-SETU is designed to move Government ITIs toward a more modern and industry-oriented training system.
Under the programme, selected ITIs can receive improvements such as:
- Modern laboratories
- Smart classrooms
- Updated training equipment
- Digital learning systems
- Modern trades
- Innovation and incubation facilities
- Industry exposure
- Placement support
- Industry-aligned curriculum
The objective is to make vocational training more relevant to the skills demanded by India’s changing industrial and technology sectors.
How Does the 850 ITI Hub-and-Spoke Model Work?
The transformation is based on a Hub-and-Spoke model.
Under the planned structure, 200 Hub ITIs will be connected with 800 Spoke ITIs. On average, each Hub can support about four Spoke ITIs.
Hub institutions are expected to provide advanced facilities such as innovation centres, trainer-development infrastructure, production units and placement services. Spoke ITIs can expand access to these resources within their respective clusters.
This model is intended to reduce duplication of expensive infrastructure while allowing students across connected ITIs to access modern training resources.
₹60,000 Crore PM SETU Investment
PM-SETU has a total outlay of ₹60,000 crore, with the funding structure divided among the Centre, States and industry:
| Funding Source | Amount |
|---|---|
| Central Government | ₹30,000 crore |
| State Governments | ₹20,000 crore |
| Industry | ₹10,000 crore |
| Total | ₹60,000 crore |
This large investment reflects the government’s focus on upgrading vocational training infrastructure and making ITI education more closely connected with industry needs.
Industry Will Play a Major Role
One of the important features of PM-SETU is industry-led governance.
For upgraded ITI clusters, Special Purpose Vehicles (SPVs) are planned with 51% ownership for the Anchor Industry Partner, while the Centre and State Governments hold 24.5% each.
These industry-led structures can participate in curriculum development, training delivery, infrastructure development and industry exposure.
This approach is intended to ensure that students learn skills that are actually relevant to available and emerging jobs.
What Will ITI Students Gain?
Students studying in selected Government ITIs could benefit from better practical training and modern facilities.
The transformation can be particularly useful for students in technical trades because modern machinery, digital tools and industry-specific processes can improve practical exposure.
PM-SETU also supports demand-driven courses and new-age occupations linked to changing workforce requirements. The programme additionally includes capacity augmentation of five National Skill Training Institutes (NSTIs) through National Centres of Excellence.
However, students should understand that PM-SETU does not guarantee a government job or automatic employment. Its purpose is to improve the quality and industry relevance of vocational training.
PM SETU 850 ITIs: Nationwide Rollout
Another important development is that the National Steering Committee has approved the transition of PM-SETU from its pilot phase to a nationwide rollout across all 200 identified ITI clusters.
Implementation will depend on factors including industry readiness and the implementation capacity of individual States and Union Territories.
As of the latest update, 36 States and Union Territories have identified clusters and created dedicated State budget heads, while 35 States/UTs have constituted State Steering Committees. 26 States/UTs have also initiated the process of inviting industry participation.
PM SETU 850 ITIs Transformation: What Happens Next?
The next phase will focus on converting the identified ITIs and approved clusters into functioning modern training centres.
The government will continue working with State Governments, industry partners and other stakeholders to implement infrastructure upgrades, modern courses and industry-led training programmes.
For ITI students, the most important development to watch is whether their particular institute appears in the officially identified Hub or Spoke cluster and what upgrades are approved for that cluster.
Conclusion
The PM SETU 850 ITIs Transformation 2026 marks a significant step in the modernization of India’s Government ITI system. So far, 850 ITIs have been identified, consisting of 172 Hub ITIs and 678 Spoke ITIs, while the overall target is 1,000 ITIs.
With a ₹60,000 crore total outlay, industry participation and a Hub-and-Spoke structure, PM-SETU aims to create more modern, practical and employment-oriented vocational training.
For ITI students, the programme could mean better equipment, modern laboratories, updated courses, stronger industry exposure and improved employability as implementation expands across India.