UPSC Alert: ₹320 Crore Approved for Kurukshetra ITI Cluster Under PM-SETU Scheme

21 Sep UPSC Alert: ₹320 Crore Approved for Kurukshetra ITI Cluster Under PM-SETU Scheme

✎ PM-SETU is a government-led initiative under Skill India Mission to upgrade ITIs into industry-aligned Centres of Excellence using a hub-and-spoke model and public-private partnerships, with a total sanctioned investment of…

Subject Relevance — Where This Topic Fits

• GS Paper II — Governance, Administration and Challenges (Skill Development and Vocational Training)  |  GS Paper III — Economy (Human Resource Development and Employment Generation)
• Prelims: PM-SETU, National Skill Development Corporation (NSDC), Industrial Training Institutes (ITIs), Skill India Mission, Apprenticeship, Hub-and-Spoke Model, National Skill Development Fund (NSDF)
• Essay: Role of Public-Private Partnerships in Skill Development and Employment Generation, Transforming India’s Workforce: The Interface of Education, Industry, and Technology

Quick Revision: PM-SETU is a government-led initiative under Skill India Mission to upgrade ITIs into industry-aligned Centres of Excellence using a hub-and-spoke model and public-private partnerships, with a total sanctioned investment of ₹2,491 crore across 10 clusters.

Why is this in the news?

This initiative, in partnership with Jindal New Opportunities Limited, marks the expansion of PM-SETU’s total sanctioned investment across 10 ITI clusters to ₹2,491 crore, reinforcing the government’s commitment to modernising vocational training infrastructure to align with emerging industry demands.

Background

• The PM-SETU scheme is a central sector initiative launched under the Skill India Mission to upgrade government Industrial Training Institutes (ITIs) into industry-aligned Centres of Excellence.
• ITIs, established under the Craftsmen Training Scheme (CTS) of the Directorate General of Training (DGT), have historically faced challenges such as outdated infrastructure, limited industry linkages, and mismatches between training curricula and labour market needs.
• The scheme operates on a hub-and-spoke model, where a ‘hub ITI’ serves as the focal point for modernisation, supported by ‘spoke ITIs’ in the cluster, ensuring equitable access to advanced training facilities.
• Public-Private Partnerships (PPPs) are a core component of PM-SETU, with industry partners contributing to curriculum design, infrastructure development, faculty training, apprenticeships, and placement support.
• The scheme is funded through the National Skill Development Fund (NSDF), which pools resources from the government, industry, and multilateral agencies to drive skill development initiatives.
• Jindal New Opportunities Limited, a subsidiary of Jindal Steel and Power Limited, has been designated as the industry partner for the Kurukshetra cluster, building on its prior engagement in the Barbil ITI cluster (Odisha) under the same scheme.

What is the PM-SETU Scheme?

• Launched under the Skill India Mission, PM-SETU aims to transform government ITIs into industry-driven, future-ready Centres of Excellence by integrating modern infrastructure, advanced laboratories, and technology-enabled training facilities.
• The scheme adopts a hub-and-spoke model, where one ITI (hub) is upgraded with state-of-the-art facilities and serves as a training and resource centre for affiliated ITIs (spokes) in the cluster.
• Industry partners play a pivotal role in the scheme, contributing to curriculum development, faculty training, apprenticeship programmes, and placement assistance to ensure alignment with industry requirements.
• The scheme introduces new courses in emerging sectors such as green energy, automation, artificial intelligence, and advanced manufacturing to address evolving labour market demands.
• Funding for PM-SETU is provided through the National Skill Development Fund (NSDF), with contributions from the central government, state governments, and private sector partners.
• The scheme emphasises outcome-based training, with a focus on improving employment outcomes, entrepreneurship, and self-employment opportunities for trainees.
• The scheme is implemented by the National Skill Development Corporation (NSDC) in collaboration with state governments and industry partners.

Key Features

Feature	Significance
Strategic Investment Plan (SIP) under PM-SETU	A ₹320 crore allocation for the Kurukshetra ITI cluster in Haryana, part of a broader ₹2,491 crore investment across 10 ITI clusters, ensuring financial sustainability and scalability for skill ecosystem transformation.
Hub-and-Spoke Model	Designation of one ITI as the ‘Hub’ (Kurukshetra ITI) and six as ‘Spoke’ ITIs, enabling resource optimization, standardized training, and equitable access to modern facilities across the cluster.
Industry Partnership with Jindal New Opportunities Limited	A private sector entity co-leading infrastructure modernization, curriculum alignment, apprenticeship facilitation, and placement support, bridging the gap between vocational training and industry demands.
Modernization of Infrastructure and Facilities	Upgradation of physical infrastructure, advanced laboratories, and digital tools to align with Industry 4.0 standards, enhancing the learning environment for trainees.
Employment-Linked Outcomes	Focus on demand-driven skill development, apprenticeship integration, and placement assistance to ensure trainees are equipped for gainful employment in emerging sectors.

Why it Matters

Economic and Industrial Development

• Enhances the employability of the workforce by aligning vocational training with the industrial requirements of Haryana, particularly in sectors like manufacturing, engineering, and emerging technologies.
• Supports the ‘Make in India’ and ‘Atmanirbhar Bharat’ initiatives by fostering a skilled labour pool that can drive industrial growth and reduce dependency on imported talent.
• Promotes industrial clusters in Haryana, particularly in Kurukshetra, by creating a skilled workforce that can attract investments and boost local economies.

Governance and Institutional Reforms

• Demonstrates the government’s commitment to reforming public vocational training institutions (ITIs) through industry-led governance models, ensuring relevance and efficiency.
• Establishes a precedent for public-private partnerships (PPPs) in skill development, leveraging private sector expertise for systemic improvements in vocational education.
• Strengthens the National Skill Development Corporation (NSDC) framework by integrating industry partners into the planning and execution of skill development initiatives.

Social and Demographic Impact

• Addresses the challenge of youth unemployment by providing industry-aligned skill training, thereby improving livelihood opportunities for a significant demographic segment.
• Promotes gender inclusivity by modernizing women’s ITIs (e.g., Rajkiya Mahila ITI, Kurukshetra) and ensuring equitable access to advanced training facilities.
• Contributes to reducing regional disparities in skill development by extending modern training infrastructure to tier-2 and tier-3 cities in Haryana.

Technological Advancement in Vocational Training

• Facilitates the adoption of Industry 4.0 technologies such as AI, IoT, and automation in ITI curricula, preparing trainees for future job markets.
• Encourages the development of specialized courses in emerging fields like renewable energy, electric mobility, and digital manufacturing, aligning with national priorities.

Challenges

1. Sustainability of Industry Partnerships

• Risk of private sector disengagement post-implementation due to changing market dynamics or corporate priorities.
• Ensuring long-term commitment from industry partners like Jindal New Opportunities Limited to sustain curriculum updates, apprenticeship programs, and placement support.

UPSC Link: GS3: Skill Development

2. Equitable Access and Regional Disparities

• Ensuring that the benefits of modernization reach all spoke ITIs uniformly, avoiding concentration of resources in the hub ITI.
• Addressing logistical and financial barriers that may prevent trainees from tier-2 and tier-3 cities from accessing advanced training facilities.

UPSC Link: GS2: Inclusive Growth

3. Curriculum Relevance and Rapid Technological Change

• Risk of curriculum obsolescence due to the fast-paced evolution of industry requirements and technological advancements.
• Need for continuous feedback loops between industry and ITIs to ensure training remains aligned with emerging job roles and skill gaps.

UPSC Link: GS3: Employment and Human Resource Development

4. Quality Assurance and Accreditation

• Ensuring that the upgraded ITIs meet national and international standards for vocational training, including faculty competence and infrastructure benchmarks.
• Establishing robust monitoring and evaluation mechanisms to assess the impact of modernization on trainee outcomes and industry satisfaction.

UPSC Link: GS2: Education and Skill Development

5. Funding and Resource Mobilization

• Dependence on central and state government budgets for sustained funding, which may face fiscal constraints in the future.
• Exploring alternative financing models, such as corporate social responsibility (CSR) funds or multilateral partnerships, to augment resources.

UPSC Link: GS3: Public Finance

Challenges — UPSC Perspective

Issue	Concern
Private Sector Engagement	Risk of waning industry interest post-implementation, leading to gaps in curriculum updates and apprenticeship placements.
Geographical Equity	Potential imbalance in resource allocation between the hub and spoke ITIs, exacerbating regional disparities in skill development.
Technological Obsolescence	Rapid advancements in technology may render upgraded facilities and curricula outdated before full utilization.
Quality Assurance	Lack of standardized benchmarks for faculty training, infrastructure, and trainee outcomes across ITIs.
Financial Sustainability	Dependence on government funding may limit scalability and long-term viability of the initiative.
Monitoring and Evaluation	Inadequate systems to track trainee employment outcomes, industry feedback, and overall impact of the modernization.

Government Initiatives — Must-Memorise for Prelims

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
• Skill India Mission
• National Skill Development Mission (NSDM)

Way Forward

• Establish a multi-stakeholder governance body comprising government, industry, and academic representatives to oversee the implementation and continuous improvement of the PM-SETU initiative.
• Develop a dynamic curriculum framework that incorporates real-time industry feedback and emerging technological trends, ensuring relevance and adaptability.
• Strengthen apprenticeship linkages by mandating industry participation in trainee placements and providing incentives for companies that hire from upgraded ITIs.
• Create a digital platform for trainee tracking, industry placements, and skill certification, enabling transparent monitoring of outcomes.
• Expand industry partnerships to include MSMEs and startups, diversifying the skill ecosystem and fostering innovation-driven employment.
• Conduct periodic third-party audits to assess the quality of infrastructure, faculty, and trainee outcomes, ensuring accountability and continuous improvement.
• Promote research and development in vocational training by collaborating with technical universities and industry R&D centres to align training with cutting-edge technologies.
• Facilitate cross-learning and best practice sharing among ITI clusters to replicate successful models and address common challenges.

UPSC Value Addition

Prelims Practice Questions

Q1. Consider the following statements regarding the PM-SETU scheme:
1. PM-SETU is a government initiative aimed at modernizing Industrial Training Institutes (ITIs) across India.
2. The scheme involves a hub-and-spoke model where one ITI serves as the hub and others as spokes.
3. The scheme mandates that industry partners must contribute at least 50% of the total investment.
4. The scheme has been approved for 10 ITI clusters with a total investment of ₹2,491 crore.

How many of the above statements are correct?

1. Only one
2. Only two
3. Only three
4. All

Answer: Only three — Statements 1, 2, and 4 are correct. Statement 3 is incorrect as the scheme does not mandate a fixed industry contribution percentage; industry partners contribute based on the Strategic Investment Plan (SIP) for each cluster.

Q2. Assertion (A): The PM-SETU scheme aims to transform ITIs into Centres of Excellence aligned with industry needs.
Reason (R): The scheme involves industry partners in curriculum development, infrastructure upgrades, and apprenticeship facilitation.

Options:
A. Both A and R are true, and R is the correct explanation of A.
B. Both A and R are true, but R is not the correct explanation of A.
C. A is true, but R is false.
D. A is false, but R is true.

Answer: ? — Both Assertion (A) and Reason (R) are true, and Reason (R) correctly explains Assertion (A). The scheme’s objective of transforming ITIs into Centres of Excellence is achieved through industry-led interventions such as curriculum alignment and infrastructure upgrades.

Q3. Match the following ITI clusters approved under the PM-SETU scheme with their respective states:

Column I (ITI Cluster) | Column II (State)
——————————————-|——————-
1. Kurukshetra ITI Cluster | A. Odisha
2. Barbil ITI Cluster | B. Haryana
3. (Example of another cluster if needed) | C. (Example state)

Options:
A. 1-B, 2-A, 3-C
B. 1-A, 2-B, 3-C
C. 1-B, 2-C, 3-A
D. 1-C, 2-A, 3-B

1. A
2. B
3. C
4. D

Answer: A — The Kurukshetra ITI Cluster is in Haryana (1-B), and the Barbil ITI Cluster is in Odisha (2-A). The third pair is not provided in the given context and is hypothetical.

Mains Practice Question

✍ The PM-SETU scheme represents a paradigm shift in India’s vocational education landscape by fostering industry-led transformation of Industrial Training Institutes (ITIs). Critically examine the scheme’s objectives, institutional mechanisms, and potential challenges in achieving its goals. Also, assess its alignment with the broader objectives of the National Education Policy (NEP) 2020. (15 Marks)

Approach: MODEL-ANSWER SKELETON:
1. **Introduction (2 Marks)**: Define PM-SETU, its launch context (Ministry of Skill Development and Entrepreneurship), and primary objective of transforming ITIs into Centres of Excellence.

2. **Scheme Objectives and Institutional Mechanisms (5 Marks)**:
– Objectives: Modernize ITI infrastructure, align curricula with industry needs, enhance employability via apprenticeships, and establish hub-and-spoke models.
– Institutional mechanisms: Role of NSDC (National Skill Development Corporation), industry partners (e.g., Jindal Stainless Limited), and state governments. Highlight the hub-and-spoke model (e.g., Kurukshetra cluster with one hub ITI and six spoke ITIs).
– Funding: ₹320 crore for Kurukshetra cluster; total investment of ₹2,491 crore across 10 clusters.

3. **Alignment with NEP 2020 (4 Marks)**:
– NEP 2020 emphasizes vocational education integration, industry-academia collaboration, and skill development for employability.
– PM-SETU aligns with NEP’s vision of making education more practical, industry-relevant, and future-ready. Cite NEP’s emphasis on ‘vocational education from school level’ and ‘internships/apprenticeships’.

4. **Challenges and Critique (4 Marks)**:
– Implementation hurdles: Ensuring equitable access across states, sustaining industry interest post-partnership, and balancing regional disparities in ITI quality.
– Quality assurance: Need for standardized assessment mechanisms for industry-aligned curricula.
– Sustainability: Long-term funding models beyond government budgets; ensuring industry partners derive tangible benefits (e.g., talent pipeline).

5. **Conclusion (1 Mark)**: Summarize the scheme’s transformative potential while acknowledging the need for continuous monitoring and adaptive policy measures.

Source: PIB (Press Information Bureau)

Haryana PCS (HPSC / HCS) — State PCS Practice

Prelims: Under the PM-SETU initiative, the National Skill Development Corporation (NSDC) has approved ₹320 crore for modernizing the ITI cluster in Kurukshetra, Haryana. Which of the following organizations is collaborating with NSDC for this modernization project?

1. A. Jindal Steel & Power Limited
2. B. Jindal Stainless Limited
3. C. Jindal Power Limited
4. D. Jindal Innovative Opportunities Limited

Answer: D. Jindal Innovative Opportunities Limited — The project is being implemented in collaboration with Jindal Innovative Opportunities Limited (JNOL).

Mains: Analyze the significance of the PM-SETU initiative in the context of Haryana’s skill development ecosystem. Discuss how the modernization of ITI clusters, such as the one in Kurukshetra, can contribute to the state’s industrial growth and employment generation.

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