Centre wants states and industry associations to play a bigger role in revamp of ITIs and skills training

The government emphasizes collaboration with industry and states as it finalizes a new outcome-oriented centrally sponsored scheme, announced in the Union Budget 2024-25, for upgrading industrial training institutes (ITIs). The Ministry of Skill Development and Entrepreneurship (MSDE) will soon initiate consultations with states and industry associations across various sectors to shape this scheme, which envisions a total investment of US$ 7.15 billion (Rs. 60,000 crore) over 5 years. The scheme aims to provide skills training to 2 million youth in new-age courses through 1,000 revamped ITIs. It targets sectors such as construction, green energy, textiles, advanced manufacturing, heavy engineering, automobiles, process industry, electronics, and telecom, focusing on creating a skilled workforce. States will ensure adequately trained instructors, with grant-in-aid from the Centre directly linked to instructor recruitment and state budget provisions. At the same time, industry involvement will be crucial for course design, trainer involvement, and machinery provision.

The scheme will develop 200 hubs ITIs and 800 spoke ITIs through a challenge-based selection process, with hub ITIs focusing on short-term courses tailored to industry needs and spoke ITIs providing relevant infrastructure. Additionally, it includes capacity augmentation of the 5 National Skill Training Institutes, which will support the training of ITI trainers, along with pre-service and in-service training for 50,000 individuals. Of the US$ 7.15 billion (Rs. 60,000 crore) investment, US$ 3.57 billion (Rs. 30,000 crore) will be provided by the Centre, US$ 2.38 billion (Rs. 20,000 crore) by states for trainer training, and US$ 1.19 billion (Rs. 10,000 crore) by the industry for infrastructure. This initiative addresses previous financial shortfalls in ITI upgradation, ensuring comprehensive infrastructure improvements, capacity expansion, and the introduction of new-age trades.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.