Cabinet approves ₹60,000-crore National Scheme for ITI Upgradation and five National Centres of Excellence for Skilling
The Union Cabinet on 7 May 2025 approved the National Scheme for ITI Upgradation and setting up of five National Centres of Excellence for Skilling as a Centrally Sponsored Scheme with an outlay of ₹60,000 crore, covering 1,000 government ITIs.
Summary
The Union Cabinet chaired by Prime Minister Narendra Modi on 7 May 2025 approved the National Scheme for Industrial Training Institute (ITI) Upgradation and setting up of five National Centres of Excellence (NCOE) for Skilling as a Centrally Sponsored Scheme. The outlay is ₹60,000 crore: ₹30,000 crore Central share, ₹20,000 crore State share and ₹10,000 crore industry share, with the Asian Development Bank and the World Bank co-financing 50% of the Central share equally. The scheme will upgrade 1,000 government ITIs in a hub-and-spoke arrangement and augment the capacity of five National Skill Training Institutes (NSTIs) at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana. Over five years, 20 lakh youth are to be skilled and 50,000 trainers given pre-service and in-service training, through an industry-led Special Purpose Vehicle model.
Key facts
- Approved
- 7 May 2025, Union Cabinet
- Outlay
- ₹60,000 crore (Centre ₹30,000 cr, States ₹20,000 cr, industry ₹10,000 cr)
- Co-financing
- 50% of Central share by ADB and World Bank, equally
- ITIs
- 1,000 government ITIs, hub and spoke
- NSTIs
- Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana
- Targets
- 20 lakh youth in 5 years; 50,000 trainers
Practice MCQs 3 questions
What is the total outlay of the National Scheme for ITI Upgradation approved by the Union Cabinet on 7 May 2025?
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Correct answer: C — ₹60,000 crore
The total outlay is ₹60,000 crore, of which ₹30,000 crore is the Central share, ₹20,000 crore the State share and ₹10,000 crore the industry share.
How many government ITIs are to be upgraded in a hub-and-spoke arrangement under the scheme approved on 7 May 2025?
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Correct answer: A — 1,000
The scheme covers upgradation of 1,000 government ITIs; 50,000 is the number of trainers to be trained and 5 the number of NSTIs.
Consider the following statements about the National Scheme for ITI Upgradation: 1. The Asian Development Bank and the World Bank will co-finance 50% of the Central share equally. 2. The National Skill Training Institutes to be augmented include Pune and Kolkata. Which of the statements given above is/are correct?
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Correct answer: A — 1 only
Only 1 is correct. The five NSTIs are at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana.