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Last Updated On: 14/10/2013  
  • Union Finance Minister in his  Budget Speech 2004-05 had announced measures for upgradation of 500 ITIs in the country. Subsequently, as per the advice of M/o Finance, action has been initiated for upgradation of 100 ITIs from domestic resources and 400 ITIs through  World Bank assistance.

  • Said 100 ITIs to be funded from domestic resources have been distributed in 26 States/UTs(other than J&K, Sikkim and NE States) in proportion to the number of Government ITIs in these States.

  • The total cost of the scheme is Rs 160 crores, Central share being Rs 120 crores, in view of ratio of 75:25 as advised by M/o Finance.

  • The competent authority has approved the scheme.  

  • The objective of the scheme is to upgrade the existing 100 ITIs into “Centers of Excellence (COE)” for producing multi skilled workforce of world standard.

  • The highlights of the scheme are introduction of  multiskilling courses(BBBT- Broad Based Basic Training ) of one year duration, followed by advanced/specialized modular courses subsequently by adopting industry wise cluster approach,  multi entry and multi exit provisions, and Public-Private-Partnership in the form of Institue Managament Committees(IMCs)  to ensure greater & active involvement of industry in all aspects of training.

Criteria of selection of ITI

The identification of ITIs within a State/UT is to be done by the State/UT Government, keeping in view the following guidelines:
  1. cluster of specific category of industry like automobile, electronics, chemical, Information Technology etc should preferably be available in the surrounding areas of the selected  ITIs   

  2. Academic, administrative, financial and management autonomy will have to be provided to the selected ITIs for upgradation as Centres of Excellence.

  3. The selected ITI should have constituted/ constitute Institute Management Committees in order to create a public-private partnership model for implementing the scheme.

  4. The selected ITI should have proper surroundings, sufficient area for landscaping, well constructed buildings with adequate space for additions/alterations and other infrastructural facilities. The institute should be well connected by road / railway station.
The release of Central share and State share of funds will be on pro rata basis in the ratio  of 75:25.

Funds are available for the following components:

  • Civil works(Rs 40 lakh /CoE) 

  • Procurement of equipment (Rs 75 lakh /CoE)

  • Other expenditure(Rs 45 lakh/CoE)

  • Honorarium for contract/guest  faculty, as well as payment of Honorarium to existing staff wherever required

  • Technical assistance for training of trainers and management personnel

  • Misc. expenditure towards curriculum development, development/ procurement of training material, Office expenses.

States are required to sign an MOU  with Central Government before funds are released.

Release of Funds

The central share of funds shall be released  to the States/UTs  as per details given below :

(a) For construction works:-

(i) Ist Instalment: 25% of central share of sanctioned amount on submission of  estimates and drawings after clearance by the IMC;

(ii) IInd Instalment: Upto 50% of central share of sanctioned amount based on the documentary evidence/photographs indicating progress of work/sample survey  by DGE&T); and,    

(iii) IIIrd Instalment: 25% of central share of sanctioned amount based on actual expenditure.

(b) For procurement of Equipment

(i)Ist Instalment:10% on submission of the equipment list after clearance  by the IMC;

(ii) IInd Instalment:  40% on documentary evidence of placement of supply order; and,

(iii) IIIrd Instalment: 50% on proof of supply & installation / commissioning of the equipment.

  IMCs  The IMC comprises of upto 11 members where one member will  be nominated by Central Government  and  not more than five members by States/UTs and not more than five members including the Chairman by the Industry Associations namely CII/FICCI/ASSOCHAM.

Roles & Responsibilities of IMCs

The IMC will have the following roles and responsibilities:

(a)  Generation of revenue through various means such as projects and financial contribution from industry including donation of equipment and using of such funds/ equipment as decided by them;

(b)  Forecasting of new emerging training areas;

(c)  Development of curriculum;

(d)  Selection of trainees;

(e)  Training of faculty;

(f)   Appointment of Contract faculty/Guest faculty;

(g)  Facilitating on the job training to the trainees;

(h)  Testing and certification; and,

(i)    Facilitating placement of passing out trainees.

State Project Implementation Unit is established with additional charge to already appointed officers at Directorate:-


State Project Director

Joint Director

Officer In-charge Environment

Deputy Director (Training)

Officer In-charge Procurement


Finance Officer

Assistant Director (Training)

Officer in-charge Institutional Development and Training

Technical Officer

Officer In-charge (Civil Works)

10 ITIs namely Solan, Una, Rampur, Shamshi, Shahpur, Nahan, Mandi, Naduan(Rail), Shimla and Chamba have been upgraded as Centres of Excellence and 4 ITIs namely ITI(W) Recong-peo, ITI Rong Tong, ITI(W) Shimla and ITI(W) Mandi have been upgraded as a whole institute under Vocational Training Improvement Project(VTIP). Out of above mentioned 10 ITI’s first three ITIs namely Solan, Una and Rampur have been covered under Centrally Sponsored Scheme (Domestic Funded) with an approved outlay of Rs. 4.80 Crore @ Rs. 1.60 Crores per ITI  and other 7 ITIs have been covered under World Bank Assistance with an approved outlay of Rs. 24.50 Crore @ Rs. 3.50 Crore per ITI and remaining 4 ITIs have been upgraded as a whole @ Rs. 2.00 Crore per ITI the funding pattern  75% Central Share and 25% State share. The Financial and Physical progress is as under:-

Sr. No

Name of Scheme

Funds Received from Centre upto 30.9.2010

Expenditure incurred Centre and State Share

Physical Progress


Centre of Excellence under Domestic funded 3 ITIs i.e. Solan. Rampur and Una (Scheme has been closed on 31.3.2011)

3.37 Crore

4.80 Crore

380 candidates are being trained every year in Electronics and Automobile Sectors.


Centre of Excellence under World Bank Assistance for 11 ITIs

20.38 Crore

27.67 Crore


880 candidates are being trained every year in  Fabrication/ Electrical/  Refrigeration & Air Conditioning and IT   Sectors.

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