Union Finance Minister Smt. Nirmala Sitharaman has unveiled a new centrally sponsored scheme as part of the Prime Minister’s package for skill development. Over the next five years, the scheme aims to skill 20 lakh youth through the upgrading of 1,000 Industrial Training Institutes (ITIs) and the introduction of industry-aligned courses. Additionally, the Model Skill Loan Scheme will be revised to offer loans up to ₹7.5 lakh, supported by a government-promoted fund, to assist 25,000 students annually. This initiative seeks to enhance vocational training, address emerging industry needs, and provide financial support to facilitate access to skill development opportunities.
Ministry of Finance
Union Finance Minister, Smt. Nirmala Sitharaman has announced a new centrally sponsored scheme as the 4th scheme under the Prime Minister’s package, for skilling in collaboration with State governments and industry. While presenting the Union Budget 2024-25 in Parliament today, the Finance Minister said that 20 lakh youth will be skilled over a 5-year period and 1,000 Industrial Training Institutes will be upgraded in hub and spoke arrangements with outcome orientation. The Finance Minister stated that course content and design will be aligned to the skill needs of industry and new courses will be introduced for emerging needs.
With regard to skilling loans, the Finance Minister announced that the Model Skill Loan Scheme will be revised to facilitate loans up to ` 7.5 lakh with a guarantee from a government promoted Fund. This measure is expected to help 25,000 students every year.
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