Key Details
The notification operationalises PM-SETU’s industry-led Hub-and-Spoke model, combining shared infrastructure, industry partnerships and targeted investments to strengthen advanced manufacturing skills.
Project cost | ₹240 crore over five years |
Implementation model | Industry-led Hub-and-Spoke cluster |
Hub | ITI Surat |
Spokes | ITI Surat (Women), Hajira, Bardoli and Sachin |
Industry partner | ArcelorMittal Nippon Steel India with NAMTECH |
Additional capacity | 3,528 training seats |
Training target | Around 25,000 youth over five years |
Priority sectors | Advanced manufacturing, metallurgy, process engineering, automation, smart textiles |
PM-SETU Moves Beyond Upgrading Individual ITIs
The Ministry of Skill Development and Entrepreneurship has approved the Surat ITI Cluster under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU), making it one of the early examples of the programme’s new industry-led institutional model. Rather than upgrading individual Industrial Training Institutes in isolation, PM-SETU creates clusters where multiple ITIs share advanced infrastructure, industry-designed curricula and apprenticeship networks through a common governance framework.
The Surat cluster will be implemented through a five-year investment of approximately ₹240 crore, with ITI Suratserving as the central hub supporting four connected institutes across the region.
Industry Becomes a Partner in Skill Development
A defining feature of the project is the participation of ArcelorMittal Nippon Steel India (AM/NS India) as the Anchor Industry Partner, working with NAMTECH to support curriculum design, practical training and industry exposure.
This represents a broader shift in vocational education policy. Instead of governments alone determining course content, employers participate directly in designing training aligned with evolving manufacturing technologies and workplace requirements. The objective is to reduce the gap between classroom instruction and industrial employment.
Shared Infrastructure Expands Access to Advanced Manufacturing Skills
The Hub-and-Spoke architecture concentrates expensive equipment and specialised laboratories at ITI Surat, while students from the connected institutes access these facilities through the cluster.
Over the five-year implementation period, the project aims to:
create 3,528 additional training seats;
train approximately 25,000 young people;
modernise workshops and classrooms;
introduce new programmes in advanced manufacturing, metallurgy, process engineering, automation and smart textiles; and
strengthen apprenticeship pathways with industry.
By sharing infrastructure rather than duplicating it across multiple institutes, the model seeks to expand access to modern vocational training at lower capital cost.
PM-SETU Links Skills Policy with Industrial Strategy
The Surat project illustrates the broader objectives of PM-SETU, announced in the Union Budget as part of a ₹60,000 crore national programme to modernise Industrial Training Institutes.
Rather than viewing skilling as a standalone social programme, PM-SETU connects vocational education with industrial competitiveness, manufacturing expansion and regional economic development. The emphasis on industry participation, shared infrastructure and apprenticeship integration reflects a shift towards creating training ecosystems aligned with India’s ambitions in advanced manufacturing and Industry 4.0.
What is the Hub-and-Spoke Model?
The Hub-and-Spoke model establishes one upgraded ITI as a central facility equipped with advanced machinery and specialised training infrastructure. Nearby ITIs function as spokes, sharing access to these facilities, industry partnerships and placement networks. The approach seeks to improve training quality while avoiding the cost of replicating high-end infrastructure across every institute.
Policy Relevance
PM-SETU shifts ITI modernisation from isolated infrastructure upgrades towards industry-led skilling ecosystems.
The Hub-and-Spoke approach enables multiple institutes to share advanced laboratories and equipment, improving capital efficiency while expanding access to modern training.
Direct participation by industry in curriculum design and apprenticeship pathways can help reduce skill mismatches between vocational education and manufacturing employment.
The Surat model illustrates how vocational education is increasingly being linked with broader industrial priorities, including advanced manufacturing, automation and Industry 4.0.
If replicated effectively, similar clusters could strengthen regional manufacturing ecosystems by aligning skilling investments with local industrial strengths.
The project also demonstrates an emerging governance model in which government, industry and technical institutions jointly shape vocational education rather than operating through separate systems.
Relevant Question for Policy Stakeholders: How should PM-SETU evaluate industry-led ITI clusters to ensure that employer participation improves long-term employability and learning outcomes rather than simply meeting immediate workforce requirements?
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