Union Finance Minister, Smt. Nirmala Sitharaman has announced a new centrally sponsored scheme as the 4^th 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.

Model Skill Loan revision expands government backed trainee financing to improve access to industry aligned vocational training. A new Centrally Sponsored Scheme announced as the fourth scheme under the Prime Minister's package will expand vocational skilling in partnership with State governments and industry, upgrade Industrial Training Institutes in a hub and spoke model oriented to measurable outcomes, and align course content to industry and emerging needs. The Model Skill Loan Scheme will be revised to enable larger trainee loans backed by a government promoted fund guarantee to widen access to skilling finance.