Union Cabinet For Upgrading ITIs, Setting Up Centres Of Excellence

New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, on Wednesday approved the 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, in a major step towards transforming vocational education in the country.

The announcement for implementing the scheme was made under Budget 2024-25 and Budget 2025-26, with an outlay of Rs 60,000 crore, comprising a Central share of Rs 30,000 crore, state share to the tune of Rs 20,000 crore and industry share of Rs10,000 crore. A co-financing to the extent of 50 per cent of the Central share will be done equally by the Asian Development Bank and the World Bank.

The scheme will focus on upgradation of 1,000 Government ITIs in hub and spoke arrangement with industry aligned revamped 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, according to an official statement.

The scheme aims to position existing ITIs as government-owned, industry-managed aspirational institutes for skills, in collaboration with state governments and industry. Over a five-year period, 20 lakh youth will be skilled through courses that address the human capital needs of industries. The scheme will focus on ensuring alignment between local workforce supply and industry demand, thereby facilitating industries, including MSMEs, in accessing employment-ready workers, the statement explained.