The National Steering Committee (NSC) has approved the Strategic Investment Plan (SIP) for the Visakhapatnam ITI Cluster in Andhra Pradesh, making it the first proposal to receive clearance under the Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs (PM-SETU) scheme, the government said on Saturday.

The proposal was submitted by ArcelorMittal Nippon Steel India (AM/NS India), making Andhra Pradesh the first state to operationalise an industry partnership under PM-SETU by onboarding an Anchor Industry Partner (AIP), according to the Ministry of Skill Development and Entrepreneurship (MSDE).

The approval was accorded during the third meeting of the National Steering Committee convened by the ministry.

The approval marks the first concrete step towards implementing PM-SETU’s vision of transforming government-run Industrial Training Institutes (ITIs) into industry-managed, outcome-oriented institutions through partnerships between state governments and leading industry players.

The meeting was chaired by MSDE Secretary Debashree Mukherjee and attended by Director General of Training (DGT) Dilip Kumar, senior representatives from central ministries, participating state governments, industry bodies and development partners.

Officials said the approval of the Visakhapatnam cluster represents a significant milestone in operationalising the industry-led Hub-and-Spoke model envisaged under PM-SETU and is expected to serve as a template for other states seeking to deepen industry participation in vocational education and training.

In addition, the NSC reviewed the overall progress of PM-SETU implementation across participating states and deliberated on measures aimed at strengthening industry participation, improving governance structures, enhancing financial sustainability of special purpose vehicles (SPVs) and accelerating project execution.

PM-SETU -- a flagship government initiative with an outlay of Rs 60,000 crore -- aims to transform 1,000 government ITIs through an industry-led Hub-and-Spoke model focused on infrastructure modernisation, stronger industry engagement and improved employability outcomes, according to the government.

A total of 32 states and Union Territories have already constituted State Steering Committees, while 12 states and UTs have floated Requests for Proposals (RFPs) to invite industry participation for selecting anchor industry partners, it added.