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Union Cabinet Approves ₹60,000 Cr Skilling Scheme, IIT Expansion, and Revised SHAKTI Policy for Coal Allocation.

National | Dated: 10 May 2025

The Union Cabinet, led by Prime Minister Narendra Modi, has approved a major scheme focused on upgrading Industrial Training Institutes (ITIs) and establishing five National Centres of Excellence (NCOEs) for Skilling. The objective is to train over 2 million young individuals with practical, industry-relevant skills over the coming five years, addressing the growing demand for a skilled workforce in various sectors.

🎯 Key Highlights:

  • - This skilling initiative will be implemented as a Centrally Sponsored Scheme (CSS), with a total budgetary outlay of ₹60,000 crore.
  • - The financial backing for this scheme has been outlined in the Union Budgets for the years 2024–25 and 2025–26, reflecting the government’s strong commitment to vocational training and youth empowerment.
  • - In a parallel move to strengthen India’s higher education ecosystem, the Cabinet has approved the expansion of academic and infrastructure facilities at five newly established Indian Institutes of Technology (IITs). These institutions are located in Andhra Pradesh (IIT Tirupati), Kerala (IIT Palakkad), Chhattisgarh (IIT Bhilai), Jammu & Kashmir (IIT Jammu), and Karnataka (IIT Dharwad), and will now be equipped to accommodate greater student intake and advanced research initiatives.

💡 Other Important Facts:

  • (i) Additionally, the Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister, has approved a revised version of the SHAKTI policy — an initiative aimed at improving the coal allocation process for the power sector.
  • (ii) The updated policy focuses on providing both short-term and long-term coal linkages with increased transparency and operational flexibility.
  • (iii) The SHAKTI scheme, first introduced in 2017, was designed to offer a more structured and fair system for coal distribution through auction-based or tariff-based bidding mechanisms. With the revised guidelines now in place, the government aims to ensure a steady coal supply to power producers, supporting energy stability and sectoral efficiency.

📚 Test Your Knowledge:

What is the total outlay for the recently approved Centrally Sponsored Scheme to upgrade ITIs and skill over 2 million youth?

Correct Answer: ₹60,000 crore

🚀 Quick Recap: