New Delhi, October 13, 2026: Nine government Industrial Training Institutes (ITIs) in Gujarat and Andhra Pradesh are set to be upgraded at an estimated cost of ₹440 crore under a partnership involving the Centre, the two state governments and steelmaker ArcelorMittal Nippon Steel India (AM/NS India). The initiative aims to modernise training facilities, introduce courses aligned with industry requirements and improve employment prospects for students pursuing technical and vocational education.
The Ministry of Skill Development and Entrepreneurship announced on October 12 that shareholders’ agreements had been signed to upgrade five government ITIs in Surat, Gujarat, and four in Visakhapatnam, Andhra Pradesh, under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme.
The approved investment includes around ₹240 crore for the Surat cluster and ₹200 crore for the Visakhapatnam cluster. The agreements establish a framework for implementing the projects, although the proposed upgrades have not yet been completed.
A key feature of the partnership is AM/NS India’s majority stake in the entities that will oversee the modernisation and management of the institutes. Dedicated Special Purpose Vehicles (SPVs), or organisations established to manage specific projects, will be created for the two ITI clusters.
Under the agreed structure, AM/NS India will hold 51% equity in each management entity, while the Government of India and the respective state government will each hold 24.5%. The arrangement gives the steelmaker a majority stake in the project entities but does not mean that the government ITIs themselves have been transferred to private ownership.
According to the ministry, the projects will focus on upgrading workshops and laboratories, introducing trades that reflect industry demand, updating training courses and strengthening practical learning opportunities. Instructor training and capacity-building programmes will also be improved to help students develop skills relevant to changing workplace requirements.
The shareholders’ agreements were signed by the Directorate General of Training, under the Ministry of Skill Development and Entrepreneurship, the governments of Gujarat and Andhra Pradesh, and AM/NS India.
The steelmaker will implement the projects with support from its academic and technical partner, New Age Makers’ Institute of Technology (NAMTECH). The institute will contribute to course development, teaching methods, faculty training and other academic improvements intended to align vocational education with industry requirements.
For students, the proposed upgrades are expected to provide access to modern equipment, more practical training and courses focused on skills sought by employers. The ministry expects these improvements to strengthen the quality of vocational education and better prepare graduates for employment in industrial sectors.
Debashree Mukherjee, Secretary of the Ministry of Skill Development and Entrepreneurship, described the signing of the agreements as the beginning of a longer process to transform the institutes. The ministry said the partnership would help align vocational education more closely with industry requirements by involving employers in training and institutional management.
The Surat and Visakhapatnam projects are among the major industry commitments approved under PM-SETU so far. According to the ministry, the first 14 approved Strategic Investment Plans under the scheme involve proposed investments totalling approximately ₹3,446 crore.
PM-SETU is a national programme with a total outlay of ₹60,000 crore. It aims to upgrade 1,000 government ITIs across India and strengthen five National Skill Training Institutes through industry partnerships, improved training infrastructure and changes in institutional management.
The October 12 agreements mark a milestone in implementing the Surat and Visakhapatnam projects. The next step will be to establish the dedicated management entities and begin carrying out the approved upgrades. The government has not specified when the modernisation of all nine institutes will be completed or when the proposed courses and facilities will become available to students.
