EOI Invited For Capacity Augmentation of five NSTIs Under PM-SETU

Directorate General of Training, Ministry of Skill Development and Entrepreneurship Expression of Interest (EoI) For Onboarding of Lead Industry Partner (LIP) for Capacity Augmentation of five National Skill Training Institutes located at Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana under Component II of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU)

Background:

The Directorate General of Training (DGT) under MSDE, is the principal agency responsible for policy formulation, regulation and implementation of vocational training programs, including institutional capacity building. Through DGT, the Ministry administers two key schemes:

  • The Craftsmen Training Scheme (CTS), delivered through Industrial Training Institutes (ITIs) to equip youth with foundational vocational skills.
  • The Craft Instructor Training Scheme (CITS), implemented through National Skill Training Institutes (NSTIs), which are specialized institutions that train instructors and vocational educators in pedagogy, domain-specific skills, and training methodology.

These institutes are under the administrative control of the Central Government.

Presently NSTIs offer a range of programs including:

  • CITS (for instructor training)
  • AVTS (Advanced Vocational Training Scheme) for in-service industry professionals
  • Short-Term Training of Trainers
  • CTS courses in new-age trades such as Artificial Intelligence, Semiconductors and Renewable Energy

With rapid technological advancements, there is a continuous need to upgrade these institutions to ensure that the skilling and training of trainers remains aligned with current and future industry needs. It is envisaged to strengthen linkages with industry and include industry’s participation in the governance of these institutes, including participation in trainer training, course content development, and curriculum design based on changing market demands.

The Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) (earlier name as National Scheme for ITI Upgradation and Setting Up of National Centres of Excellence for Skilling (NCoE) ) comprises two components:

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Component I: Upgradation of 1,000 government ITIs in a hub-and-spoke arrangement, and

Component II: Capacity augmentation of five (5) NSTIs and setting up of 5 National Centres of Excellence (NCoEs) for skilling. 

This EoI is issued in furtherance of Component II of the PM SETU Scheme, which focuses on capacity augmentation of five NSTIs located in Bhubaneswar, Chennai, Hyderabad, Kanpur and Ludhiana, into state-of-the-art training institutions.

The purpose of this EOI is to gather information, feedback and inputs of the interested and eligible entities (“Interested Party”) on the various aspects of the project, namely, capacity augmentation of (i) National Skill Training Institute, Bhubaneswar, (ii) National Skill Training Institute, Kanpur, (iii) National Skill Training Institute, Chennai, (iv) National Skill Training Institute, Ludhiana, and (v) National Skill Training Institute, Hyderabad, (collectively referred to as “NSTIs” and individually referred to as “NSTI”) through industry partnership under Component II of the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PMSETU) (“Project”).

The Scheme envisages upgradation and capacity augmentation of five NSTIs and setting up five (5) ‘National Centers of Excellence’ for skilling people in partnership with Interested Parties. As part of the Project, the curriculum will be updated to align with industry demands, and new courses will be introduced to address evolving skill needs. The primary model for implementing the scheme will be industry led, wherein a not-for-profit society-IMC(under the Society Registration Act, 1960 or relevant state laws, as applicable) will be formed to implement the scheme at the NSTI level by the Interested Party.

The Institutional Management Committee (IMC) shall be responsible for the overall management and upgradation of the NSTI in accordance with Annexure VIII hereto. IMC shall be responsible for the development and management of the Project and performance of related obligations including but not limited to, delivery of the specified training and placement. IMC will have full autonomy over course offerings (e.g., introduction of new programs, curriculum and pedagogy design), trainer management, financial operations (e.g., expenditure, revenue generation). The transformation of NSTI shall be based on three key pillars:

Upgradation of NSTI infrastructure: Enhancing both soft and hard infrastructure to provide a more favorable learning environment.

Decentralization and deregulation: Aligning NSTI operations with industry requirements and local economic needs to meet current and future workforce needs.

A new governance structure: Creating a systemized approach to leverage operational effectiveness of Lead Industry Partner (LIP).

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Purpose

In furtherance to the objective of the scheme (as set out at Annexure X hereof) and driving strategic industry participation through co-investment, co-design and co-governance, this EoI is intended to obtain inputs/suggestions from the Interested Party that may be relevant for structuring of the Project and determination of related specifications including key/focus areas. In light of the above, the Interested Party(ies) are invited to provide their inputs/suggestion regarding the phased development and operation of the NSTIs. Interested Party(ies) must submit relevant and sufficient information demonstrating their eligibility and qualifications to be considered for shortlisting in the development and operation of these NSTIs. The Interested Party is required to provide their inputs for each NSTI separately and individually. 

Scope of Work

Selected partners are expected to bring strategic leadership, co-investment, technical know-how and long-term commitment (5 years) toward upgrading NSTIs and setting up National Centres of Excellence for vocational education and instructor training. The responsibilities and activities expected from the Lead Industry Partner include, but are not limited to:

  • Governance and Strategic Leadership
    • Participation as a member of the Institutional Management Committee (IMC)/ Society/ Governing Body of the NSTI.
    • Prepare the Strategic Investment Plan (SIP), HR and training roadmap, infrastructure blueprint, and annual work plans.
    • Serve on sub-committees (e.g., Curriculum, Infrastructure, Placement) as required. (Refer to the guidelines to seek more information about the governing structure of implementation of NSTI)
  • Financial Contribution and Revenue Models
    • Contribution of a minimum of 20% of the infrastructure cost for the capacity augmentation of the NSTI.
    • Contribution towards training programs, innovation labs or incubation centres.
    • Participation in revenue generation models, including: o Paid training and consulting services o Use of shared infrastructure/labs for upskilling o Industry-paid assessment, certifications, or micro-credentials
  • Co-Design and Delivery of Training
    • Co-develop long-term and short-term training programs based on:
      • Industry-aligned curriculum
      • NSQF/QP-NOS frameworks
      • Modular, blended and job-linked formats
    • Integrate on-the-job training (OJT), apprenticeships alignment with local demand for jobs.
  • Infrastructure Design and Lab Setup
    • Support, Advise and assist in developing
      • Sector-specific labs, tools, simulators, digital classrooms
      • Workshop design and layout plans
      • Lab upgradation roadmap
    • Provide access to industry training facilities for practical exposure, assessment, and internships.
  • Human Resource and Faculty Development
    Collaborate with DGT and NSTI to design and deliver Training of Trainers (ToT) programs (pre-service and in-service)
    • Faculty immersion/sabbatical in industry
    • Pedagogy enhancement sessions
  • Employment and Placement, Support Facilitate in Employment and Placement through:
    • Job placements for NSTI graduates
    • Internships and apprenticeships with participating companies
  • Facilitate in Incubation support through
    • Startup and enterprise mentoring, particularly through the Centre of Innovation and Entrepreneurship (COIE)
    • Innovation and Research Collaboration o Support innovation challenges and idea-stage incubation
      • Enable market access and funding linkages
      • Technology roadmaps and R&D priorities
      • Establishing shared production unit
  • Certification, Accreditation and Quality Assurance Align training with standards set by NSQF, NCVET, and other regulators
    • Lead development of new course with a view to introduce up to 20 new long-term trades, up to 10 short-term trades and upgrade upto 20 existing courses in each selected NSTI
    • Certification co-branding (if applicable)
    • Institutional quality audits and reviews
  • Establishment of National Centre of Excellence (CoE)
    • Lead the design and implementation of a National Centre of Excellence at the NSTI in an identified high-growth/emerging sector (e.g., EVs, AI/ML, semiconductors, green energy, etc.).
    • Ensure global benchmarking* and workforce readiness for domestic and international markets.
  • Outreach and Branding
    • Inclusive design- Open and accessible to all demographics, including women, rural youth, PwDs and underserved groups.
    • Co-create branding and outreach strategies for the NSTI, including:
      • Participation in skill fairs and summits
      • Job/Placement Fairs,
      • Employer and youth engagement campaigns
      • Branding of labs or training programmes
  • Institutional Sustainability and Long-Term Engagement
    • Commit to multi-year partnership (minimum 5 years) with annual review mechanisms.
    • Participate in resource mobilization, capacity building and long-term planning for sustainability of the model
  • Land and Location: Details of the five selected NSTIs (Bhubaneswar, Chennai, Hyderabad, Kanpur, Ludhiana) are provided in the Scheme.
  • Government Support: DGT under MSDE will provide:
    • A maximum of 80% of the capital expenditure shall be borne by the Government.
    • Policy and administrative support through DGT, including, leveraging the infrastructure, managerial support, teacher and training resources on mutually defined terms and conditions.
    • Handholding for regulatory approvals and curriculum alignment.
    • Autonomy provided to the IMC (lead by Industries) for running NSTI as per the scheme guidelines

* About Global Partners: Lead Partners are expected to play a proactive and catalytic role in enabling global partnerships (be it global industries or academia) that strengthen the NSTI ecosystem. Key Expectations from Lead Partner in Forging Global Partnerships:

  1. Leverage Global Networks
    • Utilize existing international linkages, joint ventures, and business alliances to identify potential Global Partners.
    • Act as a conduit to connect the IMC with credible global institutions, industries, academia, training agencies and technology providers.
  2. Facilitate Partnership Negotiations
    • Support the IMC in negotiating and structuring MoUs or formal agreements with global industries, academia, training institutions or certification bodies.
    • Ensure that the partnership aligns with both global standards and local skilling needs.

Area of work for Global Partners: The Global Partner shall advise the Governing Body in the establishment of the National Centre of Excellence (NCoE) and support the implementation of key initiatives, including but not limited to the following:

  1. Advanced curriculum design aligned with international benchmarks and global standards.
  2. Support in aligning certification frameworks of ITIs with internationally recognised standards.
  3. Design and deliver international training programmes for trainers and officials to build institutional capacity
  4. Establishment of robust skills certification frameworks and assessment systems
  5. Periodic review and evaluation of training programmes to ensure quality, relevance, and industry alignment
  6. Introduction of global best practices, tools, and operational benchmarks to improve institutional performance
  7. Support in organising foreign language training programmes, wherever required, based on sectoral and regional demand

Last Date for Submission: 11 December 2025, 11:59 PM