RFP for Selection of LIP for NSTI Hyderabad under PM-SETU

The Regional Directorate of Skill Development & Entrepreneurship, Telangana Government of India invites RFP proposals for selection of a Lead Industry Partner (LIP) for capacity augmentation, upgradation, operation, and management of the National Skill Training Institute (NSTI) and for establishment of a National Centre of Excellence (NCoE) at Hyderabad, under Component II of PM SETU.

Objective of the Assignment

The objective of this assignment is to engage a technically competent and credible Lead Industry Partner (LIP) to support the transformation of the identified NSTI into a modern, industry-aligned institution for vocational and instructor training.

The assignment also includes the establishment of a National Centre of Excellence (NCoE) as a key and distinct pillar of institutional transformation. The selected LIP shall be responsible for conceptualizing, establishing, and operationalizing the NCoE in collaboration with the IMC and relevant stakeholders, with a focus on advanced skills, global standards, innovation, and sector-specific specialization, thereby strengthening industry alignment, enabling global partnerships, and positioning the NSTI as a world-class hub for skill development.

Scope of Work / Roles and Responsibilities of Lead Industry Partner (LIP)

The selected Lead Industry Partner (LIP) shall constitute the Institutional Management Committee (IMC) and lead the comprehensive transformation of the NSTI into a globally benchmarked institute for advanced vocational training and instructor development under PM-SETU, ensuring achievement of the scheme’s objectives

The LIP is expected to bring strategic leadership, co-investment, technical expertise, industry linkages, and long-term commitment toward upgrading NSTIs and establishing National Centres of Excellence (NCoE) for vocational education and instructor training. The responsibilities of the LIP shall include, but not be limited to, the following:

Institutional Governance and Strategic Leadership
The LIP shall actively participate in the governance and strategic development of the NSTI through the Institutional Management Committee (IMC). The responsibilities shall include:
- Participation as a Lead as Chairperson of the Institutional Management Committee (IMC)/Society/Governing Body of the NSTI.
- Providing strategic guidance for institutional transformation, modernization and long term sustainability.
- Contributing to key policy decisions related to academic programs, infrastructure development, industry collaboration, and institutional partnerships.
- Supporting industry-led governance practices and transparent decision-making within the IMC.
- Serving on relevant IMC sub-committees such as Curriculum, Infrastructure, Placement, or Industry Collaboration Committees, as required.
Preparation of Strategic Investment Plan (SIP)
The draft SIP prepared by the LIP shall be reviewed and endorsed by the IMC to ensure alignment with the vision of the NSTI and to incorporate inputs from the Global Partner. During the endorsement process, the IMC shall ensure that the core framework, objectives, and approved interventions outlined in the draft SIP remain unchanged. However, the IMC may incorporate minor corrective measures and rationalization of activities to address implementation challenges, align with evolving industry requirements and technological advancements, and enhance the overall effectiveness and outcome-oriented execution of the PM-SETU Scheme.
Subsequently, the IMC shall submit the endorsed SIP to the National Steering Committee (NSC) for approval. The approved SIP shall guide the implementation of project activities over the entire duration of the Scheme.
Annual Operational Planning and Implementation Support
The Lead Industry Partner (LIP) through IMC shall be responsible for leading the preparation of Annual Operational Plans (AOPs) for the entire 5-year implementation period under PM-SETU for upgradation of NSTIs. While preparing the Annual Operational Plans (AOPs), the LIP shall ensure that the core framework, objectives, and approved interventions outlined in the SIP remain unchanged; however, the LIP may incorporate minor corrective measures, rationalization of activities, and year-wise reallocation of tasks, as may be required, to address implementation challenges, align with evolving industry requirements and technological advancements, and enhance the overall effectiveness and outcome-oriented execution of the PM-SETU scheme.
Financial Contribution and Revenue Models
The LIP shall contribute towards the financial sustainability and development of the NSTI. Responsibilities include:
- Contributing a minimum of twenty percent (20%) of the total project outlay, covering both (i) upgradation of NSTIs including civil infrastructure, equipment, and support facilities, and (ii) operational and workforce costs, in accordance with the PM-SETU Scheme Guidelines.
- The contribution shall be made through direct financial transfer to the designated escrow account, and in-kind contributions shall not be considered for meeting the mandatory financial commitment.
- Supporting additional investments for innovation labs, incubation centres, or specialized training facilities.
- Participation in revenue generation models such as:
  (i) Paid training programs and consulting services
  (ii) Industry training and upskilling programs
  (iii) Industry-paid certifications or micro-credentials
  (iv) Utilization of shared infrastructure for skill development programs
Development of Centres of Excellence, Innovation, and Research Collaboration
The LIP through IMC shall support in establishing and operationalizing specialized academic and innovation centres to strengthen the NSTI ecosystem. In addition, the LIP shall foster the promotion of innovation, incubation, and research collaboration within NSTI.
Infrastructure Development and Lab Setup
The LIP shall lead the capacity augmentation of NSTI through upgrading infrastructure and training facilities.
Curriculum Modernization and Training Delivery
The LIP shall lead the modernization and development of industry-aligned training programs. Responsibilities include:
- Curriculum review and gap analysis of existing CTS and CITS programs.
- Development of 20 long-term and 10 short-term training and upgradation of 20 existing training programs aligned with industry needs.
- Integration of modern technologies, digital learning tools and advanced manufacturing practices.
- Alignment of training programs with NSQF/QP-NOS frameworks.
- Development of modular, blended and job-linked training formats.
- Integration of On-the-Job Training (OJT), apprenticeships, and industry exposure.
Human Resource Development and Faculty Capacity Building
The LIP through IMC shall be responsible for supporting faculty development and strengthening human resource capabilities for effective implementation of the SIP for upgradation of NSTI. This shall include deployment and engagement of appropriate human resources to ensure efficient execution of envisaged interventions. The LIP, through the IMC, shall have the necessary autonomy for engagement of manpower and re-alignment of roles of existing personnel, in line with institutional requirements and scheme objectives.
Industry Collaboration and Employment Linkages
The LIP shall facilitate strong industry linkages to improve employability outcomes. Activities may include:
- Establishing partnerships with industries, sector skill councils and industry associations.
- Facilitating internships, apprenticeships and on-the-job training opportunities.
- Supporting placement of NSTI graduates in relevant industries.
- Organizing industry workshops, seminars and collaborative training initiatives.
Monitoring, Reporting and Compliance
The LIP is responsible for fulfilling monitoring and reporting requirements under the scheme.
Global Partnerships and International Collaboration
The LIP, through the IMC, will promote collaboration with global partners and their agencies to strengthen the NSTI ecosystem and support the development of the National Centre of Excellence (NCoE). Renewable Energy has been identified as a priority area for NSTI Hyderabad. A Joint Declaration of Intent (JDI) was signed with The Federal Ministry for Economic Cooperation and Development of the Republic of Germany, on 10th January 2026 for the establishment of a National Centre of Excellence in Skilling. The LIP will actively leverage these partnerships to build sector-specific capabilities and enhance global integration.
The LIP and the Global Partner shall jointly ensure that the NCoE is developed as a globally competitive, industry-driven centre for advanced skilling under the Scheme.
Outreach, Branding and Inclusion
The LIP shall be responsible for strengthening the visibility and outreach of the NSTI, in coordination with the IMC. Activities may include:
- Co-developing branding and outreach strategies.
- Organizing job fairs, skill fairs and employer engagement programs.
- Promoting participation of women, rural youth, persons with disabilities and underserved communities.
- Supporting awareness campaigns for vocational training programs.