PM Modi-led Cabinet clears key reforms in skilling, IIT expansion, and coal allocation

In a major push to enhance India’s human capital and energy security, the Union Cabinet chaired by Prime Minister Narendra Modi on Wednesday approved three key policy decisions focused on skilling, higher education, and coal allocation.

ITI Upgradation and National Skill Centres
The Cabinet approved the National Scheme for Industrial Training Institute (ITI) Upgradation along with the establishment of five National Centres of Excellence for Skilling. With a total outlay of Rs 60,000 crore, the centrally sponsored scheme will be co-financed by the Asian Development Bank and the World Bank, contributing 50% of the central share.

The scheme targets the upgradation of 1,000 government ITIs and capacity building of five National Skill Training Institutes (NSTIs) located in Bhubaneswar, Chennai, Hyderabad, Kanpur, and Ludhiana. These will house new centres of excellence and modern training facilities. Over five years, the program aims to skill 20 lakh youth and train 50,000 instructors, aligning courses with modern industry demands through a hub-and-spoke model involving industry collaboration and flexible, need-based funding.

Expansion of Five IITs

The Cabinet also approved the Phase-B expansion of five Indian Institutes of Technology (IITs)—Tirupati, Bhilai, Jammu, Dharwad, and Palakkad. With an investment of Rs 11,828.79 crore over four years, the move will enhance academic and research capacity, create 130 new faculty positions, and add 6,576 student seats across UG, PG, and PhD programs.

This expansion is expected to increase total student capacity in these IITs from 7,111 to 13,687, and includes the establishment of five state-of-the-art research parks to strengthen academia-industry linkages. It is expected to significantly boost local economies, employment, and innovation ecosystems.

Revised SHAKTI Policy for Coal Allocation
In the energy sector, the Cabinet approved a Revised SHAKTI Policy to simplify coal allocation to power plants. The policy introduces two streamlined windows:

Window-I: Coal linkage to central and state power producers at notified prices.
Window-II: Auction-based linkage for all producers, including private and imported coal-based plants, with no PPA requirement, offering flexibility in electricity sale.

This reform enables long- and short-term coal procurement, promotes import substitution, and supports setting up of new pithead thermal power plants, reducing transport costs and tariffs. It also encourages fuel supply rationalization, market flexibility, and greater participation in power exchanges. The policy ensures ease of doing business and fosters investment in thermal capacity.