• What? ADB Approved  Loan to Indian
• Loan Amount: USD 846 Mn
• Purpose: Modernise 650 ITIs across 12 states + upgrade 5 NSTIs
• Beneficiaries: 1.3 million youth (focus on women, disadvantaged groups)
• Sectors: Renewable energy, electric mobility, advanced manufacturing, green jobs
• Co-financier: World Bank

Key Highlights:
Programme overview: The funding supports the “Supporting Pradhan Mantri Skilling and Employability Transformation through Upgraded ITIs Program (PM-SETU)”. It aims to build a future ready workforce for manufacturing and emerging technology sectors, aligned with Skill India and Make in India priorities.
ITI Modernisation Model: The programme aims to modernise 650 Industrial Training Institutes (ITIs) across 12 states using a hub-and-spoke cluster model. It focuses on upgrading infrastructure, training equipment, and digital systems to deliver industry-aligned, demand-driven courses.
NSTI Centres Upgrade:  It proposes to upgrade 5 National Skill Training Institutes (NSTIs) into Centres of Excellence for advanced trainer development, thereby improving the quality and capacity of instructors nationwide.
PPP-Led Governance: The programme introduces governance reforms through Public–Private Partnerships (PPPs), granting ITIs greater institutional autonomy and strengthening industry participation in curriculum design, assessment, and placement activities.
High-Growth Sectors: Training will be expanded in high-growth sectors such as renewable energy, electric mobility, advanced manufacturing, and other green and digital economy areas, aligned with future labour market demand.
Youth-Centric Skilling: The initiative is expected to directly benefit at least 1.3 million youth, with a strong focus on women and disadvantaged groups, by improving employment outcomes and access to modern skilling opportunities.
Green & Inclusive Design: Investments will support energy-efficient buildings, disaster and health preparedness, and green skills, while integrating climate-responsive and sustainability-oriented content into training curricula.
Results-Based Financing: The programme adopts a Results-Based Lending (RBL) modality, linking fund disbursements to measurable outcomes such as higher graduate employment rates and improved institutional performance.
World Bank Support: The initiative will be co-financed with the World Bank, aligning multilateral financial and technical support with India’s large-scale skilling transformation agenda
About Asian Development Bank (ADB):
President – Masato Kanda (Japan)
Headquarters – Manila, the Philippines
Member Nations – 69 (50 member nations are from Asia-Pacific region)
Established – 1966