Private sector to drive skills training at 1,000 upgraded ITIs

Time of India

24-06-2025

The
private sector
will take the lead in imparting
skills training
to two million youths over a five year period through its own curriculum, which will be developed as per industry requirements, in a major shift in skills training in the country.
The skill development and entrepreneurship ministry will set up industry-led special purpose vehicles to drive skills training at the 1,000
industrial training
institutes (ITIs) which are being upgraded, said officials.
A strict multi-layered monitoring mechanism will be put in place to assess the progress at each
ITI
, they said.
While the Centre will continue to fund half the cost, or Rs 30,000 crore, over the next five years, it will step back from day-to-day operations and management of these ITIs, which will be run jointly by the states and the private sector, a senior government official told ET.
'The Ministry of Skill Development and Entrepreneurship plans to give financial and managerial autonomy to the private sector to manage them while states will be responsible for identifying industrial clusters for development of these ITIs and for monitoring,' said the official, who did not wish to be identified.
Besides, the industry will be responsible for admission, training and placement of candidates in the respective sectors. An escrow account will be created for funding the skills training with contribution from the Centre, states and industry in the 3:2:1 ratio.
According to the official, the industry is expected to devise a strategic investment plan for each ITI which will be evaluated and approved by the state committee and the Centre before the skills training is launched.
The ministry plans to hire an agency to quarterly monitor progress on skills training based on the learning outcome management system, followed by annual or biannual assessment by the states to ensure desired outcomes are achieved.
The Union cabinet had in May approved the Rs 60,000 crore national scheme for ITI upgradation.
The scheme, announced in the budget for 2024-25, will see the states contributing Rs 20,000 crore and industry contributing Rs 10,000 crore, with the Asian Development Bank and the World Bank equally co-financing to the extent of half the central share.
India has 14,615 ITIs across the country, with 1.44 million candidates enrolled.