In a landmark development under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, the National Steering Committee (NSC) has approved the Strategic Investment Plan (SIP) for the Visakhapatnam ITI Cluster in Andhra Pradesh, submitted by ArcelorMittal Nippon Steel India (AM/NS India) along with their academic partner New Age Makers Institute of Technology (NAMTECH).
First step towards industry-managed ITIs
The approval was granted during the third meeting of the National Steering Committee convened by the Ministry of Skill Development and Entrepreneurship (MSDE).
The development represents the first concrete implementation milestone under PM-SETU, which aims to transform government Industrial Training Institutes (ITIs) into industry-managed, outcome-oriented institutions through deep collaboration between state governments and leading industry players.
The meeting was chaired by Debashree Mukherjee, Secretary, Ministry of Skill Development and Entrepreneurship, and attended by Dilip Kumar, Director General of the Directorate General of Training (DGT), along with members of the National Steering Committee.
Industry and government come together
The deliberations brought together senior representatives from key government bodies, including the Capacity Building Commission (CBC), National Council for Vocational Education and Training (NCVET), Ministry of Commerce and Industry, Ministry of Heavy Industries, and Ministry of Labour and Employment.
Industry leaders from organisations such as Hindustan Aeronautics Limited, Hero MotoCorp, Bajaj Auto, ITC Limited and ArcelorMittal Nippon Steel India also participated, alongside development partners including the Asian Development Bank and the World Bank.
Visakhapatnam cluster sets the benchmark
A key outcome of the meeting was the approval of the Visakhapatnam ITI Cluster proposal submitted by AM/NS India.
With this approval, Andhra Pradesh becomes the first state under PM-SETU to onboard an Anchor Industry Partner (AIP), a crucial component of the scheme’s industry-led hub-and-spoke model.
The move is expected to serve as a blueprint for other states seeking to deepen industry participation in vocational education and accelerate the transformation of ITIs into centres of excellence aligned with evolving industry needs.
Driving outcome-based skilling
The National Steering Committee also reviewed the overall progress of PM-SETU implementation across participating states and discussed policy measures aimed at strengthening industry participation, enhancing institutional governance and improving the financial sustainability of Special Purpose Vehicles (SPVs).
Discussions focused on advancing industry-led governance frameworks, promoting outcome-based skilling models and strengthening collaboration among industry, state governments and training institutions to ensure India’s workforce remains aligned with emerging technologies and future industrial requirements.
₹60,000 crore vision for workforce transformation
PM-SETU is one of the Government of India’s most ambitious skill development initiatives, with an outlay of ₹60,000 crore.
The programme aims to transform 1,000 government ITIs through an industry-led hub-and-spoke model that modernises infrastructure, strengthens industry engagement and improves employability outcomes. The scheme also envisages the establishment of National Centres of Excellence (NCoEs) in high-growth sectors to create a future-ready workforce equipped for advanced manufacturing and emerging technologies.
Momentum builds across states
Implementation momentum is gathering pace across the country. So far, 32 states and Union Territories have constituted their State Steering Committees, while 12 states and UTs have floated Requests for Proposals (RFPs) to invite industry participation in the selection of Anchor Industry Partners.
Several of these processes are nearing completion, supported by an expanding pipeline of state-industry consultations that reflects growing convergence between industry interest and state readiness.