Andhra Pradesh Set to Operationalise PM-SETU Partnership as Visakhapatnam ITI Cluster Plan Wins Approval

The PM-SETU scheme seeks to fundamentally reshape India’s vocational education landscape by placing industry at the centre of training and workforce development.

India's ambitious effort to transform vocational education and create an industry-driven workforce has achieved a major milestone with the approval of the first-ever Strategic Investment Plan (SIP) under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme. The National Steering Committee (NSC) has approved the Strategic Investment Plan for the Visakhapatnam ITI Cluster in Andhra Pradesh, making the state the first in the country to operationalize an industry partnership under the flagship skilling initiative.

The proposal was submitted by ArcelorMittal Nippon Steel India (AM/NS India) in partnership with the New Age Makers Institute of Technology (NAMTECH), marking a significant step toward implementing the Government of India's vision of transforming Industrial Training Institutes (ITIs) into modern, industry-managed centres of excellence. The approval represents the first concrete outcome under PM-SETU and is expected to serve as a model for future industry-led vocational education reforms across the country.

Landmark Approval Under PM-SETU

The approval was granted during the third meeting of the National Steering Committee convened by the Ministry of Skill Development and Entrepreneurship (MSDE) at Kaushal Bhawan in New Delhi. The meeting was chaired by Debashree Mukherjee, Secretary of the Ministry of Skill Development and Entrepreneurship, and attended by senior officials from the Directorate General of Training (DGT), representatives of multiple ministries, state governments, industry leaders, and development partners.

The decision marks a historic moment for India's skill development ecosystem, as it is the first Strategic Investment Plan approved since the launch of the PM-SETU scheme. More importantly, it establishes Andhra Pradesh as the first state to successfully onboard an Anchor Industry Partner (AIP), paving the way for deeper collaboration between industry and vocational training institutions.

Transforming ITIs Through Industry Leadership

The PM-SETU scheme seeks to fundamentally reshape India's vocational education landscape by placing industry at the centre of training and workforce development. Through a Hub-and-Spoke model, industries will work closely with government ITIs to modernize infrastructure, update curricula, introduce advanced technologies, and improve employability outcomes.

Under this framework, institutions will become more responsive to industry requirements, ensuring that students acquire skills aligned with current and future labour market demands. The Visakhapatnam ITI Cluster is expected to demonstrate how strong industry participation can improve training quality and strengthen the connection between education and employment.

The initiative also aims to address a longstanding challenge in vocational education—bridging the gap between classroom learning and real-world industrial requirements. By integrating industry expertise directly into institutional governance and training delivery, the model seeks to produce a workforce equipped for advanced manufacturing, automation, and emerging technologies.

Role of ArcelorMittal Nippon Steel India and NAMTECH

The approval of the Visakhapatnam cluster highlights the growing role of the private sector in workforce development.

ArcelorMittal Nippon Steel India, one of the country's leading steel manufacturers, partnered with NAMTECH to develop and submit the Strategic Investment Plan. Their involvement is expected to bring industry best practices, technological expertise, and practical training opportunities into the vocational education system.

As an Anchor Industry Partner, AM/NS India will play a crucial role in shaping training programmes, identifying future workforce needs, facilitating industry exposure, and supporting employment-linked outcomes. The collaboration demonstrates how industries can contribute directly to developing a skilled workforce while addressing their own talent requirements.

Broad Participation from Government and Industry

The National Steering Committee meeting brought together stakeholders from across the skilling ecosystem. Representatives from the Capacity Building Commission (CBC), National Council for Vocational Education and Training (NCVET), Ministry of Commerce and Industry, Ministry of Heavy Industries, and Ministry of Labour and Employment participated in discussions.

Leading industry players such as Hindustan Aeronautics Limited (HAL), Hero MotoCorp, Bajaj Auto, ITC Limited, and ArcelorMittal Nippon Steel India were also part of the deliberations. International development institutions including the Asian Development Bank (ADB) and the World Bank contributed to discussions on strengthening implementation and ensuring long-term sustainability.

This broad participation underscores the collaborative nature of PM-SETU and highlights the importance of partnerships in transforming India's vocational training ecosystem.

Focus on Governance and Sustainability

During the meeting, the National Steering Committee reviewed overall implementation progress and discussed measures aimed at strengthening industry participation, improving governance structures, and enhancing the financial sustainability of Special Purpose Vehicles (SPVs) established under the scheme.

Participants emphasized the importance of outcome-based skilling models, stronger institutional management, and mechanisms that ensure training programmes remain aligned with evolving industry needs. Discussions also focused on accelerating project implementation and creating frameworks that encourage greater private-sector investment in skill development.

PM-SETU: A ₹60,000 Crore Transformation Initiative

PM-SETU is one of the largest vocational education reform programmes undertaken in India. With a total outlay of ₹60,000 crore, the scheme aims to transform 1,000 Government Industrial Training Institutes through industry-led partnerships.

The initiative seeks to modernize training infrastructure, improve employability outcomes, strengthen industry engagement, and establish National Centres of Excellence (NCoEs) in high-growth sectors. By creating stronger links between government institutions and industry, PM-SETU aims to build a future-ready workforce capable of supporting India's industrial and technological ambitions.

The programme aligns with broader national goals of enhancing manufacturing competitiveness, promoting innovation, and preparing young people for careers in emerging industries.

Growing Momentum Across States

The approval of the Visakhapatnam ITI Cluster comes at a time when PM-SETU is gaining momentum nationwide.

According to the Ministry, 32 States and Union Territories have already constituted their State Steering Committees, while 12 States and Union Territories have issued Requests for Proposals (RFPs) to attract industry participation in selecting Anchor Industry Partners. Several of these processes are nearing completion, indicating strong interest from both governments and industries.

Multiple rounds of consultations between state governments and industry stakeholders have also been conducted, reflecting increasing convergence between industry demand and state-level preparedness for implementation.

Building a Skilled Workforce for Viksit Bharat 2047

The Government views PM-SETU as a critical component of its long-term vision for Viksit Bharat 2047. As India seeks to become a global manufacturing hub and a leader in advanced technologies, the availability of a highly skilled workforce will be essential.

The approval of the first Strategic Investment Plan signals the beginning of large-scale implementation and demonstrates that industry-led vocational education reform is moving from planning to execution. More Strategic Investment Plans are expected to receive approval in the coming months, accelerating the transformation of ITIs across the country.

By combining government support, industry expertise, and institutional reform, PM-SETU aims to create a modern vocational education system capable of meeting future workforce demands while enhancing employment opportunities for millions of young Indians.

The approval of the Visakhapatnam ITI Cluster is therefore more than a regional achievement—it marks the start of a nationwide effort to redefine skill development, strengthen industry participation, and build a workforce prepared for the opportunities and challenges of a rapidly changing global economy.