Schemes for Upgradation of ITIs

Infrastructure of ITIs has been modernized by upgradation of ITIs through the following schemes:

A. Upgradation of 400 Government ITIs - Externally Aided Project (EAP) - World Bank assisted Vocational Training Improvement Project (VTIP):

The Vocational Training Improvement Project (VTIP) envisages upgradation of 400 Government ITIs. 34 State Governments/UTs are participating under the project. About Rs. 2 to 3.5 cr. has been allocated to the ITIs for upgradation depending on the industrial sector identified by the ITI. The scheme objective also includes enhancement of knowledge and skills of ITI instructors, strengthening facilities in 14 central institutes, strengthening curriculum development, capacity building etc.

Key institutional reforms introduced under the project are constitution of Institute Management Committee (IMC) at ITI level with a chairperson from the industry. Physical component consisted of setting up of new classrooms and workshops, training of trainers, modernization of tools, equipment, machinery and ensuring a congenial environment.

The project started in Dec. 2007 and closed in September 2018. An amount of Rs. 1812 cr. has been released to the States/UTs and centrally funded institutes against which about Rs. 1754 cr. has been utilized till date.

B. Upgradation of 1396 Government ITIs through PPP

Under the scheme of Upgradation of 1396 Government ITIs through PPP, 1227 Government ITIs have been covered and an Industry Partner (IP) is associated with every ITI covered under the scheme. Institute Management Committee (IMC), registered as a society, has been constituted in each ITI and is headed by the Industry Partner. Interest free loan of Rs. 2.50 crore per ITI was released by the Central Government directly to the IMC Society of the ITI. Financial and academic autonomy has been given to the IMC society. The interest free loan is repayable by the IMC with a moratorium of 10 years and thereafter in equal annual instalments over a period of 20 years. 31 States/UTs have been covered under the scheme and Rs. 3067.50 crore has been released to 1227 Government ITIs throughout the country during the XI Plan period. Letter has been issued by DGT for all State Governments for repayment of the interest free loan to the Government of India through online portal “”.

C. Upgradation of Government ITIs into Model ITI

Under this Scheme, an existing ITI in a State is being upgraded as Model ITI which will be evolved as an institution showcasing the best practices, efficient and high quality training delivery and sustainable and effective industry relationship by:

  • Becoming a demand centre for local industries for its expertise and best performance in training.
  • Better engagement with local industries
  • Signing flexi MoU with industry to conduct training program to meet specific skill requirement of the Industry. For such approved courses, examination / assessment and certification will be done by NCVT
  • Training of unorganized sector workers.
  • Training of existing industrial workforce

Institute Management Committee (IMC) society is to be formed for each ITI with chairperson from Industry. All major trades are to be covered by the representatives of industry in IMC. IMC is to be empowered for its efficient functioning.

The scheme was approved in Dec. 2014 for a total cost of Rs 300 crore. Implementation period for the Scheme was 3 years i.e., till FY 2016-17. The scheme has now been extended by the Standing Finance Committee (SFC) for a total cost of Rs. 300 crore, in its meeting held on 09.08.2018 under the chairpersonship of Secretary (MSDE) till March 2020. So far, an amount of Rs. 245.30 crore (including State Share) has been allocated to 27 States for upgradation of 29 ITIs into Model ITIs and Rs. 119.46 crore (including State Share) has been released, so far.