New Delhi: In a significant move to modernize India's vocational education landscape, the Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the National Scheme for Industrial Training Institute (ITI) Upgradation and the establishment of five National Centres of Excellence (NCOEs) for Skilling.

Announced under the Union Budgets of 2024-25 and 2025-26, the scheme will be implemented as a Centrally Sponsored Scheme with a total outlay of ₹60,000 crore. This includes ₹30,000 crore from the Centre, ₹20,000 crore from State governments, and ₹10,000 crore from industry. Additionally, the Asian Development Bank and World Bank will jointly co-finance 50% of the Centre's share.

The initiative aims to transform 1,000 government ITIs into aspirational, industry-managed institutions under a hub-and-spoke model. It also includes capacity augmentation of five National Skill Training Institutes (NSTIs) in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana, where the NCOEs will be set up.

Aiming to skill 20 lakh youth over the next five years, the scheme seeks to bridge the gap between industry demand and workforce supply, particularly benefiting MSMEs. Key focus areas include infrastructure overhaul, revamped course content, and capital-intensive, new-age trade training aligned with sectors such as electronics, automotive, and renewable energy.

For the first time, an industry-led Special Purpose Vehicle (SPV) model will oversee implementation, marking a shift from past efforts. Around 50,000 trainers will also receive pre-service and in-service training, with improved Training of Trainers (ToT) infrastructure.

By repositioning ITIs as skill hubs and enhancing employability, the scheme is expected to play a pivotal role in realizing the Prime Minister's vision of a 'Viksit Bharat' by 2047.