National Scheme for Industrial Training Institute (ITI) Upgradation

National Scheme for Industrial Training Institute (ITI) Upgradation and Setting up of five National Centres of Excellence for Skilling approved

  • Implementation: Centrally Sponsored Scheme.
  • Objective: Transform existing ITIs into government-owned, industry-managed institutes of skill development.
  • Financial Outlay: ₹60,000 crore over 5 years.
  • Funding Breakdown: Central Government: ₹30,000 crore, State Governments: ₹20,000 crore, Industry Contribution: ₹10,000 crore
  • Co-financing: 50% of the central share to be equally funded by the Asian Development Bank (ADB) and the World Bank.
  • Key Focus Areas
    • Upgradation – 1,000 Government ITIs to be modernized under the hub-and-spoke model with industry-aligned courses.
    • Capacity Enhancement – Expansion of five National Skill Training Institutes (NSTIs); Establishment of five National Centres of Excellence for Skilling.
    • Implementation Approach – Industry-led Special Purpose Vehicle (SPV) model for better execution and measurable outcomes.
  • Structure: Operate under State Governments and serve as the backbone of Vocational Education and Training (VET) since the 1950s.
  • Accreditation: Managed by Directorate General of Training (DGT) under Ministry of Skill Development & Entrepreneurship.
  • Current Status
    • Total ITIs: ~15,034 across India.
    • Private Ownership: 78% of ITIs are privately managed.
  • Existing Skill Development Schemes
    • STRIVE (Skills Strengthening for Industrial Value Enhancement).
    • Model ITI initiative.
    • Enhancing Skill Development Infrastructure in North-Eastern States (ESDI).

Source: PIB


Previous Year Question

With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements:
1. It is the flagship scheme of the Ministry of Labour and Employment.
2. It, among other things will also impart training in soft skills, entrepreneurship, financial and digital literacy.
3. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework.
Which of the statements given above is/are correct?

[UPSC Civil Services Exam – 2018 Prelims]

(a) 1 and 3 only
(b) 2 only
(c) 2 and 3 only
(d) 1, 2, and 3

Answer: (c)
Explanation:
It is the flagship scheme of the Ministry of Skill Development & Entrepreneurship (MSDE). Hence, statement 1 is not correct.


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