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In a major step towards aligning skill development with industry requirements, the Government of India has approved the Surat ITI Cluster in Gujarat under the Prime Minister’s Scheme for Upgradation of Industrial Training Institutes (PM-SETU). The industry-led project, with an investment of approximately INR 240 crore, will be led by ArcelorMittal Nippon Steel India (AM/NS India), with NAMTECH serving as the academic partner. It is among the first major PM-SETU projects approved in Gujarat.
The announcement was made by Jayant Chaudhary, Minister of State (Independent Charge) for Skill Development & Entrepreneurship and Minister of State for Education, during his visit to ITI Surat. He said the government’s objective is not only to train young people but also to prepare them for the jobs of the future. According to him, industries will no longer remain mere employers but will also play an active role in developing skilled talent.
'Classrooms Must Evolve for Future Jobs'
Speaking on the occasion, Jayant Chaudhary said, “India is witnessing the emergence of a new skill development model where industry is not just a job provider but also a creator of talent. The approval of the Surat Cluster under PM-SETU reinforces our belief that today’s classrooms must be designed for the jobs of the future. Such partnerships between the government, industry and educational institutions are laying the foundation for world-class institutions that will strengthen India’s manufacturing and innovation ecosystem in the years to come.”
Government ITIs to Become Industry-Driven Centres of Excellence
PM-SETU aims to transform government Industrial Training Institutes (ITIs) into modern, industry-driven Centres of Excellence equipped with future-ready skills. The Surat project reflects a strong partnership between the state government, industry and academic institutions. It received national approval after undergoing technical evaluation and clearance by the Gujarat State Steering Committee.
Hub and Spoke Model for Skill Development
The project will be implemented under a hub-and-spoke model, with ITI Surat serving as the hub institution, supported by ITI Surat (Women), ITI Hazira, ITI Bardoli and ITI Sachin as spoke institutions. The cluster is designed to build a modern skill ecosystem aligned with Gujarat’s rapidly growing industrial sectors, including advanced manufacturing, steel, engineering, process industries, textiles and Industry 4.0 technologies.
AM/NS India to Play a Key Role
One of India’s leading integrated steel producers, AM/NS India will contribute its industrial expertise, operational capabilities and advanced training experience to the initiative.
The company already operates industry-integrated learning systems, apprenticeship programmes, Industry 4.0 skill initiatives, digital learning platforms and academic collaborations through NAMTECH. This experience will now support the development of the Surat ITI Cluster.
INR 240 Crore Investment Over Five Years
The project envisages an investment of around INR 240 crore over the next five years. The funds will be used to modernise ITI infrastructure, establish advanced laboratories and workshops, introduce smart classrooms and digital learning systems, upgrade curricula, train faculty members and strengthen industry-led governance.
The government's vision is to transform ITIs into modern skilling hubs where students receive training that directly matches industry requirements.
Over 25,000 Youth to Benefit
The project aims to train around 25,000 trainees over the next five years, while creating 3,528 additional training seats.
Existing trades will be upgraded, new long-term programmes in emerging technologies will be introduced, and short-term industry-oriented courses will be launched to improve employability and expand apprenticeship opportunities for young people.
A New Boost to Industry-Academia Collaboration
Welcoming the approval, AM/NS India and its academic partner NAMTECH said the initiative would significantly strengthen India's skill development mission.
Santosh Mundhada, Executive Director and Deputy CTO, AM/NS India, said the project will help empower local communities, create better employment opportunities for youth and build a future-ready talent pipeline aligned with evolving industry needs.
India Moves Towards a New Skill Development Model
Experts believe the approval of the Surat ITI Cluster represents more than just another infrastructure project it signals a transformation in India’s skill development approach. Through PM-SETU, the government is creating a collaborative model where industry, government and educational institutions work together to connect education directly with employment and evolving industrial demands.
If successfully implemented, the Surat model could become a benchmark for other states, supporting India's manufacturing ambitions, the 'Make in India' initiative, the 'Viksit Bharat 2047' vision, and the creation of a globally competitive skilled workforce for the industries of the future.
