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Andhra Pradesh Becomes First State to Operationalise PM-SETU with Industry-Led ITI Transformation

S. Divya Sree by S. Divya Sree
June 8, 2026
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In a significant 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. The proposal was submitted by ArcelorMittal Nippon Steel India (AM/NS India) along with its academic partner, New Age Makers Institute of Technology (NAMTECH).

The approval marks the first-ever Strategic Investment Plan cleared under PM-SETU and makes Andhra Pradesh the first State to operationalise an industry partnership under the scheme.

Andhra Pradesh Becomes First State to Operationalise PM-SETU with Industry-Led ITI Transformation

First major milestone under PM-SETU

The approval was granted during the 3rd National Steering Committee Meeting convened by the Ministry of Skill Development and Entrepreneurship (MSDE) at Kaushal Bhawan, New Delhi.

Chaired by Smt. Debashree Mukherjee, Secretary, MSDE, the meeting was attended by Shri Dilip Kumar, Director General of Training (DGT), members of the National Steering Committee, representatives from various Ministries and Departments, participating State Governments, industry leaders, and development partners including the Asian Development Bank (ADB) and the World Bank.

A key outcome of the meeting was the approval of the Strategic Investment Plan for the Visakhapatnam ITI Cluster. With this approval, Andhra Pradesh becomes the first State under PM-SETU to onboard an Anchor Industry Partner (AIP), marking an important milestone in the implementation of the industry-led Hub-and-Spoke model envisioned under the scheme.

Transforming ITIs through industry partnerships

The approval of the Visakhapatnam Cluster represents a significant step towards transforming Industrial Training Institutes into industry-managed, outcome-oriented institutions capable of responding to evolving workforce requirements.

The project is expected to serve as a model for other States seeking to strengthen industry participation in vocational education and training while accelerating the implementation of PM-SETU interventions.

During the meeting, the National Steering Committee reviewed the overall progress of PM-SETU implementation across participating States and discussed measures aimed at:

  • Strengthening industry participation in ITI governance
  • Improving institutional management and accountability
  • Enhancing the financial sustainability of Special Purpose Vehicles (SPVs)
  • Accelerating project implementation under the scheme
  • Promoting outcome-based skilling aligned with industry needs

The discussions also focused on strengthening partnerships between industry, State Governments and training institutions to ensure that India’s vocational education and training ecosystem remains responsive to emerging sectoral demands and future workforce requirements.

PM-SETU: Driving large-scale ITI modernisation

PM-SETU is a flagship initiative of the Government of India with an outlay of ₹60,000 crore. The scheme aims to transform 1,000 Government ITIs through an industry-led Hub-and-Spoke model.

Its key objectives include:

  • Modernising ITI infrastructure
  • Strengthening industry engagement
  • Improving employability outcomes
  • Establishing National Centres of Excellence (NCoEs) in high-growth sectors
  • Creating a future-ready workforce for advanced manufacturing and emerging technologies

Growing momentum across states

PM-SETU continues to gather momentum across the country. So far, 32 States and Union Territories have constituted their State Steering Committees, while 12 States/UTs have floated Requests for Proposals (RFPs) to invite industry participation and select Anchor Industry Partners.

With multiple State-industry consultations already completed and several more underway, the scheme is moving towards a full-fledged industry-led implementation phase.

The approval of the Visakhapatnam ITI Cluster marks an important step in this journey and is expected to pave the way for further Strategic Investment Plan approvals in the coming months, supporting the transformation of India’s vocational education and training ecosystem in line with the vision of Viksit Bharat 2047.

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S. Divya Sree

S. Divya Sree

S. Divya Sree is a Content Developer at National Skills Network (NSN), covering topics related to education, technology, work-integrated learning, and skill development. She is passionate about creating digital content, fond of research and analysis, and believes in the role of education and skilling in shaping the future of work.

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