Cabinet Approves ₹60,000 Crore Scheme to Transform ITIs and Establish Five National Centres of Excellence

In a landmark move to revolutionize vocational education and bridge the industry-skill gap, the Union Cabinet chaired by Prime Minister Narendra Modi has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and Setting up of Five National Centres of Excellence (NCOEs) as a Centrally Sponsored Scheme.

Announced in line with the Union Budgets for 2024–25 and 2025–26, the scheme carries a massive outlay of ₹60,000 crore, jointly funded by the Central Government (₹30,000 crore), State Governments (₹20,000 crore), and Industry (₹10,000 crore). Notably, half of the Centre’s contribution will be co-financed by the Asian Development Bank and the World Bank, further underlining the global confidence in India’s skilling push.

Under the scheme, 1,000 Government ITIs will be upgraded in a hub-and-spoke model with revamped, industry-aligned courses. Additionally, five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana will see significant capacity augmentation and house five National Centres of Excellence for Skilling.

Aimed at transforming existing ITIs into government-owned, industry-managed aspirational institutions, the scheme targets to skill 20 lakh youth over five years, in collaboration with State Governments and industry partners. It introduces, for the first time, an industry-led Special Purpose Vehicle (SPV) model to ensure outcome-driven implementation and sustained industry involvement.

The scheme will also invest in training 50,000 trainers, enhancing both pre-service and in-service capacity, and significantly improving Training of Trainers (ToT) infrastructure across the five key NSTIs.

Addressing long-standing gaps in infrastructure, course relevance, and employability, the initiative promises to modernize vocational education to align closely with emerging industry demands—particularly in high-growth sectors such as electronics, automotive, and renewable energy.

By creating a future-ready workforce and rebranding vocational training as a viable, aspirational career path, the scheme supports the Prime Minister’s vision of Viksit Bharat, positioning skilling at the heart of India’s economic and industrial growth strategy.

Latest news

Lt. Gen Syed Ata Hasnain (Retd.) Appointed Governor of Bihar

Lt. Gen Syed Ata Hasnain (Retd.) has been appointed as the Governor of Bihar, marking the transition of the...

Sanjay Agarwal Reappointed as MD & CEO of AU Small Finance Bank

AU Small Finance Bank has reappointed Sanjay Agarwal as its Managing Director & Chief Executive Officer, reaffirming leadership continuity...

Odisha IAS Reshuffle: Key Changes Across MSME, Industry and Governance Sectors

The Government of Odisha has issued a fresh round of administrative adjustments among senior IAS officers, as per a...

Haryana Govt Transfers 3 IAS Officers; Raja Sekhar Vundru Posted as ACS (Food & Civil Supplies)

The Government of Haryana has ordered the transfer and posting of three Indian Administrative Service (IAS) officers with immediate...

You might also likeRELATED
Recommended to you