The Haryana Government has taken a major step towards skill development and connecting young people with employment opportunities. At an important meeting of the Standing Finance Committee chaired by Chief Minister Sh. Nayab Singh Saini, the implementation and budgetary provisions for the PM-SETU (Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs) scheme, being launched in the state for the first time, were approved.
The primary objective of the scheme is to ensure maximum employment opportunities for skilled youth graduating from upgraded ITIs in the state and help them secure better salary packages in line with industry requirements.
At the meeting, the Chief Minister also approved the Kurukshetra Cluster project, estimated to cost approximately ₹320.44 crore.
A National Vision Worth ₹60,000 Crore
The centrally sponsored PM-SETU scheme was announced in the Union Budget 2024-25 and further expanded in the Union Budget 2025-26. The scheme has a total national budget of ₹60,000 crore, comprising ₹30,000 crore from the Central Government, ₹20,000 crore from state governments and ₹10,000 crore from the industry.
Additionally, the Asian Development Bank (ADB) and the World Bank will provide co-financing support of up to 50 per cent of the Central Government’s share through results-based lending. Under the scheme, 1,000 government ITIs and five National Skill Training Institutes (NSTIs) across the country are being developed as National Centres of Excellence equipped with state-of-the-art facilities.
Hub-and-Spoke Model to Transform it is
Under the scheme, ITIs will be developed through a hub-and-spoke cluster model. The first component will be implemented by Haryana’s Skill Development and Industrial Training Department, while the second component will be directly managed by the Union Ministry of Skill Development and Entrepreneurship. Each hub ITI will be linked to approximately four spoke ITIs, which will be equipped with modern infrastructure, machinery and digital learning facilities.
For administrative and financial management, a Special Purpose Vehicle (SPV), in the form of a Section 8 company, will be established. The Anchor Industry Partner (AIP) will hold 51 per cent of the shareholding, while the remaining 49 per cent will be equally divided between the Central and State Governments, with each holding 24.5 per cent. The SPV’s board will include representatives from industry, the Central Government, the State Government and ITI leadership, with an industry representative serving as its chairperson.
Estimated Outlay of ₹2,892 Crore for 12 Clusters in Haryana
Haryana plans to establish 12 clusters under the scheme, covering approximately 60 government ITIs across the state. The total estimated expenditure is ₹2,892 crore, of which the State Government’s share will be approximately ₹954 crore.
At present, seven clusters have been identified in the state. The Strategic Investment Plan (SIP) for the Kurukshetra cluster has received approval from the National Steering Committee (NSC), while the plan for the Kalayat cluster will be taken up after January 2027. Requests for Proposals (RFPs) have been issued for the Palwal, Sonipat and Chhara clusters, while RFPs for Panipat and Rewari are scheduled to be issued in December. Separate budgetary provisions will be made for the remaining clusters after their final approval.
At the meeting, the financial allocation for the Kurukshetra ITI cluster was approved in detail. The project will cost ₹320.44 crore, with the Central Government contributing ₹160.22 crore (50 per cent), the State Government ₹105.75 crore (33 per cent), and the Anchor Industry Partner (AIP) ₹54.47 crore (17 per cent).
The implementation contract for the Kurukshetra cluster has been awarded to M/s Jindal Naveen Avsar Limited. The cluster will comprise one hub ITI—Government ITI, Kurukshetra—and six spoke ITIs: Women’s ITI, Kurukshetra; ITI Kaithal; ITI Pehowa; ITI Pabnawa; Women’s ITI, Ambala City; and Women’s ITI, Kaithal.
According to the financial details, ₹163.06 crore of the total project cost will be allocated towards capital expenditure (CAPEX) for upgrading infrastructure and laboratories. Of this amount, 98 per cent, or ₹160.22 crore, will be borne by the Central Government. The remaining ₹157.38 crore will be allocated towards operational expenditure (OPEX), to be shared by the State Government and the industry partner in the ratio of 65:35, respectively.
Budgetary Allocation and Further Action
The committee approved the creation of a new budget head for the PM-SETU scheme and sanctioned a provision of ₹105.75 crore towards the State Government’s share for the Kurukshetra cluster during the financial years 2026-27 to 2030-31. It also authorised the release of 10 per cent of the State Government’s share as an advance payment, amounting to ₹10.50 crore, for the operation of the Kurukshetra cluster during the current financial year 2026-27.
This landmark decision by the Haryana Government will equip the state’s ITI infrastructure with world-class facilities, enabling young people to receive training in modern technologies and opening up new employment opportunities for them in leading companies in India and abroad.
Minister of State for Youth Empowerment and Entrepreneurship Sh. Gaurav Gautam, Additional Chief Secretary, Finance and Planning Department, Sh. Sudhir Rajpal; Additional Chief Secretary, Youth Empowerment and Entrepreneurship Department, Smt. G. Anupama; Deputy Principal Secretary to the Chief Minister, Dr. Yashpal; Commissioner, Finance Department, Sh. C.G. Rajinikanthan; Director, Skill Development and Industrial Training Department, Sh. Parth Gupta; and other senior officers were present at the meeting.
