Nine government Industrial Training Institutes (ITIs) in Surat and Visakhapatnam are set for a complete makeover after the Centre, the Gujarat and Andhra Pradesh governments and steelmaker ArcelorMittal Nippon Steel India (AM/NS India) signed shareholder agreements under the PM-SETU scheme. The Ministry of Skill Development and Entrepreneurship announced on Monday (October 12) that about Rs 440 crore has been sanctioned for the two clusters.
For students in Andhra Pradesh, the headline number is Rs 200 crore – the amount earmarked for upgrading four government ITIs in Visakhapatnam with modern workshops, new-age trades and industry-designed courses.
What is PM-SETU?
PM-SETU, short for Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs, is a central scheme with a total outlay of Rs 60,000 crore. It aims to rebuild India's vocational training system through strong industry partnerships and institutional reform. The scheme covers the upgrade of 1,000 government ITIs across the country and the strengthening of five National Skill Training Institutes (NSTIs).
The model is built around "clusters" – groups of ITIs adopted by an anchor industry partner that helps design what is taught and how. Each cluster works under an approved Strategic Investment Plan (SIP).
Key details of the Surat and Visakhapatnam deal
The agreements were signed between the Directorate General of Training (DGT) under the skills ministry, the two state governments and AM/NS India. They clear the way to implement the approved SIPs in both states.
| Scheme | PM-SETU (total outlay Rs 60,000 crore) |
| Industry partner | ArcelorMittal Nippon Steel India (AM/NS India) |
| Academic partner | New Age Makers Institute of Technology (NAMTECH) |
| Surat cluster (Gujarat) | 5 government ITIs, Rs 240 crore |
| Visakhapatnam cluster (AP) | 4 government ITIs, Rs 200 crore |
| Total sanctioned | About Rs 440 crore for 9 ITIs |
| SPV shareholding | AM/NS India 51%; Centre and state 24.5% each |
| Announced | October 12, 2026 |
Dedicated special purpose vehicles (SPVs) will be set up to manage the upgrade and day-to-day running of each cluster. AM/NS India will hold a 51 per cent stake, with the Government of India and the respective state government holding 24.5 per cent each.
According to the ministry, the AM/NS India-led projects are among the largest industry commitments approved so far under PM-SETU. The first 14 SIPs cleared under the scheme together carry approved investments of Rs 3,446 crore. Earlier this year, the Visakhapatnam cluster's plan became the first SIP to be approved under the scheme.
What will change inside these ITIs
AM/NS India will bring its manufacturing experience and industry insight, while NAMTECH will work on curriculum, teaching quality, faculty development and academic innovation. The planned upgrades include:
- Modernising training infrastructure, workshops and laboratories.
- Introducing new-age, industry-relevant trades and technologies.
- Updating existing courses to match what employers now need.
- Stronger training-of-trainers and capacity building for instructors.
- More hands-on, practical learning opportunities for trainees.
The goal, the ministry says, is to significantly improve training quality, employability and job-readiness among ITI graduates.
"The beginning of a transformational journey"
Skills ministry Secretary Debashree Mukherjee said signing the agreements was not the finish line but the start of a transformational journey for the country's ITIs. Pointing to India's place among the top 10 nations at the recent WorldSkills competition in Shanghai, she said PM-SETU and aspirational institutes should now aim to become centres of excellence that produce future WorldSkills champions. The aim, she added, is not just to upgrade buildings but to raise aspirations, quality and outcomes across the skilling system.
What it means for students in Andhra Pradesh and Gujarat
ITIs are the first stop for lakhs of young people who want a trade – fitter, electrician, welder, machinist and more – and a job soon after Class 10 or 12. A common complaint has been that equipment and syllabi lag far behind what factories actually use. With a steel major directly running the upgrade, trainees in Visakhapatnam and Surat stand to learn on machines and processes closer to real industry, and could find a clearer path to apprenticeships and placements in the region's steel, port and manufacturing belt.
What happens next
With the shareholder agreements signed, the SPVs will be formed and the upgrade work under the approved plans can begin. Admission seekers should watch for announcements from the state employment and training departments on new trades and courses at the cluster ITIs. More clusters are expected to sign up as other states push ahead with PM-SETU.
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