New Delhi: The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the establishment of five National Centres of Excellence for Skilling at select National Skill Training Institutes (NSTIs), including one in Bhubaneswar.

The Cabinet has also approved a national scheme for the upgradation of Industrial Training Institutes (ITIs), aimed at enhancing training infrastructure and improving the overall quality of skill development across the country.

Per an official statement, the NSTIs in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana will undergo infrastructure upgrades to strengthen Training of Trainers (ToT) capabilities. The initiative will provide pre-service and in-service training to 50,000 trainers.

Announced as part of the Union Budgets for 2024–25 and 2025–26, the scheme will be implemented with a total outlay of ₹60,000 crore. This includes ₹30,000 crore from the Central Government, ₹20,000 crore from State Governments, and ₹10,000 crore from industry partners. Notably, 50% of the Centre’s contribution will be co-financed equally by the Asian Development Bank and the World Bank.

The scheme will facilitate the upgradation of 1,000 government ITIs using a hub-and-spoke model aligned with industry needs, while also boosting the capacity of the five NSTIs. It aims to transform existing ITIs into Government-owned, industry-managed aspirational institutes, in collaboration with State Governments and industry stakeholders.

Over a five-year period, the scheme is expected to skill 20 lakh youth through revamped courses tailored to meet the evolving human capital demands of various industries.

By aligning local workforce supply with industry demand, the initiative also seeks to support industries—including MSMEs—in accessing job-ready talent. An industry-led Special Purpose Vehicle (SPV) model will be adopted for implementation, ensuring an outcome-oriented approach distinct from earlier efforts to revamp the ITI ecosystem.