The Ministry of Skill Development and Entrepreneurship is working on the modalities of a policy framework for upgrading 1,000 industrial training institutes (ITIs) and setting up five National Centres of Excellence for Skilling.

According to sources, a pilot scheme will be launched in this regard either later this year or early next year. Based on its results, a full-fledged expansion and upgradation of ITIs will take place. The ministry is also in talks with private sector firms and partner with them to set up hub and scope ITIs that will be based on industry needs and the course module and curriculum will also be designed by the firms.

“We are looking to create an ecosystem where in each of the ITIs set up under the hub and scope model will cater to a specific sector or industry. The institutes will ideally also be set up in an industrial belt or area to ensure that the requirements for skilled manpower are met locally while also creating jobs in the region,” said a person familiar with the development.

Several India Inc firms have evinced interest in the programme and are set to partner with the skill ministry.

As many as 200 ITIs will function as hub institutions and 800 as spokes. A hub ITI will on an average have four spoke ITIs with all upgraded ITIs equipped with state-of-the-art infrastructure, machinery and equipment, as per an official release.

In May, the Union Cabinet approved the National Scheme for Industrial Training Institute (ITI) Upgradation and the setting up of five National Centres of Excellence for Skilling as a Centrally Sponsored Scheme. The scheme has an outlay of Rs 60,000 crore of which Rs 30,000 crore is the Central share, Rs 20,000 crore is the state share and Rs 10,000 crore is the industry share. The Centre’s share will be with co-financed to the extent of 50% of Central share by the Asian Development Bank and the World Bank, equally.

The scheme will focus on upgradation of 1,000 Government ITIs in hub and spoke arrangement with industry aligned revamped trades (courses) and Capacity Augmentation of five National Skill Training Institutes (NSTIs), including setting up of five National Centres of Excellence for Skilling in these institutes. It aims to skill over 20 lakh youth over a five year period.