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PM-Setu Strengthens ITI Transformation

Published on: 08-Sep-2026

Source: PIB

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PM-Setu Strengthens ITI Transformation

Article Summary

Summary of PM-Setu Initiative and National Steering Committee Meeting

Overview of PM-Setu:

  • PM-Setu (Prime Minister Skill Development and Employment Transformation for Advanced ITIs) is a government initiative aimed at transforming Industrial Training Institutes (ITIs) in India to be more industry-oriented and future-ready.
  • The initiative adopts a hub-and-spoke model, connecting a main ITI (hub) with several associated ITIs (spokes) for coordinated investment and modernization.

National Steering Committee Meeting:

  • The 5th National Steering Committee (NSC) meeting was held under the chairmanship of Debashree Mukherjee, Secretary, Ministry of Skill Development and Entrepreneurship (MSDE).
  • Key attendees included representatives from the Directorate General of Training (DGT), industry partners, and officials from state governments.

Investment Approvals:

  • The NSC approved a Strategic Investment Plan (SIP) totaling ₹735.70 crore, enhancing the total investment under PM-Setu to ₹2,171 crore across 9 ITI clusters.
  • Approved SIPs are designated for ITI clusters in:
    • Rajasthan: ₹241 crore for Bhiwadi ITI cluster (Main center: Government ITI Bhiwadi).
    • Telangana: ₹254.30 crore for Medchal ITI cluster (Main center: Government ITI Medchal).
    • Uttar Pradesh: ₹240.40 crore for Meerut ITI cluster (Main center: Government ITI Saket, Meerut).

Significance of SIP Approvals:

  • SIPs are expected to modernize ITI infrastructure, introduce new long-term and short-term courses, and align training programs with industry needs.
  • The initiative aims to enhance the capacity of ITIs, preparing youth for emerging technologies and evolving job markets.

Key Achievements:

  • Signing of a Shareholder Agreement (SHA) between HG Infra Engineering Ltd., the Rajasthan government, and MSDE for the Bhiwadi ITI cluster, marking Rajasthan as the first state to implement SHA under PM-Setu.
  • The collaboration aims to ensure that ITIs can provide skill development in line with industry requirements.

Future Goals:

  • The PM-Setu initiative aims to facilitate the establishment of modern, industry-oriented ITIs across India, thereby improving employment outcomes for graduates.
  • The focus will be on creating a robust partnership between government, state administrations, and the industry to ensure that ITIs can deliver relevant and high-quality training.

Conclusion:

  • The PM-Setu initiative represents a significant commitment from the Indian government to enhance vocational training and skill development, ensuring that the workforce is equipped to meet the demands of a changing economy.

Key Terms & Concepts

PM-SetuSkill development initiative
735.70 crore INRApproved project budget
2,171 crore INRTotal investment in ITIs
National Skill Development Corporation (NSDC)Project proposal presenter
Rajasthan, Uttar Pradesh, TelanganaStates involved in investment
Hub-and-Spoke ModelITIs transformation strategy
Skill Development and Entrepreneurship MinistryImplementing ministry
HG Infra Engineering LimitedProject contractor for Rajasthan
Strategic Investment Plans (SIPs)Approved investment plans
Skill and Employment Department of RajasthanState government department

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1.4 million barrels per day (bpd)
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    Constitutional and Policy Context

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    • Russian Oil Dynamics: India has significantly increased oil imports from Russia to 1.9 million bpd (over 35% of total oil imports in September 2026), influenced by substantial discounts post-Ukraine invasion.

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    • Import Diversification Strategy: India continues to diversify its oil sources in response to market conditions and geopolitical pressures, exploring genuine engagement with alternative suppliers rather than succumbing to external pressures.

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  • Refinery Outputs: Increased to 10.3% in September, indicating reliance on expensive imported oil, with imports up 7% by volume but 47% in value.
  • Global Oil Market:

    • Oil prices escalated to over $112/barrel due to attacks on Saudi Arabia's energy infrastructure, complicating India’s import costs.
    • Continued reliance on imported oil is straining India’s foreign exchange reserves, particularly essential for stabilizing the rupee.
  • Government Role & Infrastructure Spending:

    • Cement and steel are the only sustainable industrial sectors, primarily fueled by government infrastructure expenditure.
    • Shrinking fiscal space indicates an impending challenge for sustained industrial output growth.
  • Constitutional and Policy References

    • Article 21: Addresses the right to life and personal liberty; a focus on maintaining economic stability can be linked to this fundamental right.
    • Fiscal Policy: The need for fiscal prudence becomes critical in light of industrial dips and reliance on expensive imports.

    Government Schemes and Reforms

    • Emphasis on infrastructure spending indicates potential alignment with ongoing government schemes aimed at boosting industrial output and job creation.
    • Encouragement of local production to reduce import reliance is paramount.

    Challenges Ahead

    • Concerns regarding the long-term sustainability of industrial growth amidst rising global oil prices, depleting reserves, and significant reliance on imports.
    • Continued monitoring of the El Niño effect on weather patterns is essential for predicting energy demands and agricultural impacts moving forward.

    Conclusion

    The industrial landscape in India is exhibiting momentary growth, supported largely by government spending and external factors, yet underlying challenges remain in sustaining this growth against a backdrop of rising costs and contractive patterns in major energy sectors.

    1.9 million bpd
    35%

    Economic Considerations:

    • Market Dynamics: The US aims to establish a market for Venezuelan oil, benefitting from Indian refining capacity, while India assesses purchases based on price, quality, and supply reliability.
    • Freight Costs: The freight cost to import Venezuelan crude to India is about $35 per barrel, which can erode the benefits of a $25 discount offered on the Merey grade crude.
    • Economic Rivalries: The competition from other oil supplies, particularly from the Gulf (Iraq), complicates the scenario for Venezuelan oil.

    Challenges:

    • Limitations on Imports: Technical capabilities and commercial viability limit the scale of additional Venezuelan crude imports. Refining capacity and economics play crucial roles.
    • Differing Quality of Crude: Venezuelan crude (Merey) is markedly different from Russian crude (Urals), complicating the substitution of one for the other.

    Strategic Implications:

    • US and Indian Strategies: US interests are to diversify energy sources and reduce global reliance on conflict-prone areas. Conversely, India's strategy considers maintaining a stable supply of crude despite pressures to reduce Russian imports.
    • Geopolitical Pressures: Experts suggest New Delhi should not link its Venezuelan imports to reducing purchases of Russian oil and must approach negotiations from a standpoint of diversification without compromising existing resources.

    Legal & Policy Insights:

    • Washington's Position: The US has waived potential tariffs on Russian oil imports, impacting ongoing negotiations between Washington and New Delhi while prioritizing stable fuel prices amid election pressures domestically.
    • Future Commitments: Experts advocate for India to clarify terms regarding supply reliability, investment obligations, and pricing before committing to increased Venezuelan imports under US pressure.

    Conclusion:

    India's role as an emerging refining powerhouse presents both opportunities and challenges, particularly in balancing international relations regarding oil imports from Venezuela and Russia. The intricate web of price, logistics, and geopolitical strategy defines current discussions, with careful navigation required to optimize India's energy security.