Assistance to Training Institutions (ATI) Scheme

Assistance to Training Institutions (ATI) Scheme: The Definitive Guide for 2025-26

The Bedrock of ‘Viksit Bharat’ – Why MSMEs and Skill Development are Crucial

Introduction: The Unsung Heroes of the Indian Economy

In the grand narrative of India’s journey towards becoming a developed nation—a ‘Viksit Bharat’ by 2047—the Micro, Small, and Medium Enterprises (MSME) sector stands as a formidable protagonist. Often hailed as the “backbone of the Indian economy,” this sector is not just a collection of businesses; it is a dynamic, sprawling ecosystem that fuels job creation, nurtures entrepreneurial dreams, and drives innovation from the bustling industrial estates of our cities to the quiet corners of our villages.

Contributing nearly a third of the country’s GDP and almost half of its exports, the true power of MSMEs lies in their ability to democratize economic growth. They are the primary job creators, absorbing millions into the workforce and offering a ladder of upward mobility. For India to realize its ambitious economic goals in 2025-26 and beyond, the health, vibrancy, and competitiveness of its MSME sector are non-negotiable.

However, the global landscape is changing at an unprecedented pace. The dawn of Industry 4.0, the global push towards a green economy, and the relentless march of digital transformation present both a challenge and an opportunity. To navigate this new world, our workforce needs more than just degrees; it needs skills. Relevant, cutting-edge, and practical skills are the currency of the new economy. This is where the critical role of skill development comes into play. A skilled workforce is the engine that will power our MSMEs, enabling them to enhance productivity, adopt new technologies, and compete on the global stage.

Recognizing this vital link, the Indian government, through the Ministry of MSME, has implemented a suite of policies under the umbrella of MSME Schemes 2025-26. Among these, the Assistance to Training Institutions (ATI) Scheme emerges as a foundational pillar, a strategic intervention designed to build the very infrastructure where skills are forged and entrepreneurs are born.

The MSME Landscape in 2025-26: The Power of Udyam Registration

To understand the context of the ATI Scheme, one must first appreciate the modern definition of an MSME. The formalization drive, spearheaded by the Udyam Registration portal, has been a game-changer. It provides a single, paperless registration that confers an identity and a host of benefits upon enterprises. For the 2025-26 outlook, Udyam is more than a certificate; it’s a gateway for MSMEs to access priority sector lending, government tenders, and a plethora of schemes, including those focused on skill development.

As we look towards 2025-26, the focus is not just on increasing the number of MSMEs but on enhancing their quality, productivity, and resilience. This requires a robust support system, and at the heart of this system are the training institutions that equip individuals with the capabilities to run these enterprises successfully.

Decoding the Assistance to Training Institutions (ATI) Scheme

What is the ATI Scheme? A Strategic Investment in India’s Future

The Assistance to Training Institutions (ATI) Scheme is a targeted, high-impact program implemented by the Ministry of MSME. In simple terms, its core purpose is to provide financial support to the premier national and state-level institutions responsible for imparting entrepreneurship and skill development training.

Think of it this way: if skilled entrepreneurs are the “crop,” then the training institutions are the “farms.” The ATI scheme provides the essential “fertilizer and modern equipment” for these farms. It is not a direct subsidy to individuals but a strategic capital investment to enhance the capacity and quality of the trainers themselves. The assistance comes primarily in the form of a capital grant, which is used for creating new infrastructure and strengthening existing facilities.

The Core Philosophy and Objectives: Building a World-Class Skilling Ecosystem

The objectives of the ATI Scheme go far beyond mere construction of buildings. They are deeply rooted in the philosophy of creating a self-sustaining and responsive skilling ecosystem. As we head into 2025-26, these objectives are more relevant than ever:

1. Creation and Strengthening of Physical Infrastructure: To provide financial muscle to premier training institutions for building new campuses, classrooms, workshops, and laboratories, and for modernizing their existing ones. This is crucial for keeping pace with technological advancements.
2. Enhancing Training Quality: To enable these institutions to procure state-of-the-art training equipment, aids, office automation tools, and other support services like modern libraries and digital databases. An institution training students on cybersecurity for 2026 cannot use technology from 2010.
3. Supporting Entrepreneurship and Skill Development Programmes: To provide financial support for the actual conduct of training programs, ensuring that they remain affordable and accessible.
4. Capacity Building of the Entire MSME Ecosystem: The scheme also aims to train the trainers and the staff of government bodies like District Industries Centres (DICs), who are the first point of contact for many aspiring entrepreneurs.

ATI’s Role in the National Skill Framework for 2025-26

The ATI scheme does not operate in a vacuum. For the 2025-26 period, it is intrinsically linked to the larger vision of the Skill India Mission. The government is increasingly focused on a “whole-of-government approach,” integrating various initiatives for maximum impact.

The ATI Scheme is a critical enabler for the newly restructured Skill India Programme, which combines flagship schemes like Pradhan Mantri Kaushal Vikas Yojana (PMKVY) 4.0. While PMKVY 4.0 focuses on delivering training in new-age skills like AI, 5G, Green Hydrogen, and Drone Technology, the ATI scheme provides the foundational support to the institutions that will design and deliver these very courses. It ensures that the Tool Rooms, the NI-MSMEs, and the State EDIs have the physical and technological capacity to run such advanced programs, creating a pipeline of talent ready for the industries of tomorrow.

The Beneficiaries – The Pillars of India’s Skill Ecosystem

The ATI Scheme is highly selective, focusing its resources on institutions with a proven track record and a strategic role in the national skilling mission. Private training institutions and NGOs are not eligible for infrastructure support under this scheme, ensuring that public funds are used to bolster public and quasi-public institutional capacity.

Who Can Apply? A Detailed Look at Eligible Institutions

The beneficiaries of the Training Institutions MSME Scheme are broadly divided into two categories:

A. National Level Institutions: The Central Pillars of Excellence

These are the apex organizations operating directly under the Ministry of MSME. They are the thought leaders, the curriculum setters, and the premier training delivery centres in the country.

• National Institute for Micro, Small and Medium Enterprises (NI-MSME), Hyderabad: The foremost institution in the country for MSME training, research, and consultancy. NI-MSME plays a pivotal role in policy formulation and is often involved in the screening process for the ATI scheme itself, shaping the future trajectory of skill development.
• Khadi and Village Industries Commission (KVIC): With a mandate to promote rural employment, KVIC’s training centres are crucial for empowering artisans and promoting non-farm livelihood opportunities. ATI grants help these centres modernize and expand their reach.
• Coir Board: Dedicated to the development of the coir industry, a traditional, eco-friendly, and employment-intensive sector. The scheme helps its training centres in skill upgradation and product diversification.
• MSME Technology Centres (including Tool Rooms and Technology Development Centres): These are the crucibles of modern manufacturing. With a focus on precision engineering, tooling, and automation, Tool Rooms are vital for making MSMEs competitive. An ATI grant could help a Tool Room procure a new 5-axis CNC machine or set up a robotics lab, directly benefiting local industries.
• National Small Industries Corporation (NSIC): Focused on fostering the growth and competitiveness of MSMEs, NSIC provides integrated support services. Its technical centres benefit from ATI to offer training on the latest technologies.
• Mahatma Gandhi Institute for Rural Industrialisation (MGIRI), Wardha: This institute has a unique mandate to accelerate rural industrialization by blending science and technology with traditional industries.

B. State Level Entrepreneurship Development Institutes (EDIs): The Regional Catalysts

While national institutions set the direction, the State EDIs are the primary agents of change at the grassroots level. They understand the local industrial climate, local resources, and the specific needs of their state’s population.

• Role and Importance: State EDIs are the main drivers of entrepreneurship culture within their respective states. They conduct Entrepreneurship Development Programmes (EDPs), offer counseling, and facilitate access to finance and markets.
• Eligibility Criteria: To be eligible for the ATI grant, a State EDI must be an existing institution that is owned and controlled by a State Government or Union Territory (UT) administration. This ensures accountability and alignment with public policy goals. The recommendation for the grant must also come from the respective State Government/UT, ensuring that the assistance is directed towards deserving and capable institutions.

Deconstructing the Financial Assistance – The Core Mechanics of ATI

The financial support under the ATI Scheme is structured, specific, and purpose-driven. It’s not a blank cheque but a well-defined grant meant to achieve tangible outcomes. The assistance can be broken down into three main verticals.

A. Capital Grants for National Institutions’ Infrastructure

For the apex national institutions under the Ministry of MSME, the financial assistance for infrastructure is need-based. The amount of assistance will not exceed the actual amount required for the creation, strengthening, or expansion of their infrastructure. This could involve:

• Civil Works: Construction of new academic blocks, hostels, auditoriums, and workshops.
• Procurement of High-Tech Equipment: Purchasing modern machinery for Tool Rooms, advanced servers and software for IT training, or sophisticated lab equipment for research and development.
• Modernization: Upgrading existing facilities to meet new standards, including making campuses green and energy-efficient, a key focus for 2025-26.

The proposals are evaluated on a case-by-case basis, ensuring that the investment aligns with the institution’s mandate and the government’s strategic priorities.

B. Special Focus: The Grant for State-Level EDIs

For State-Level EDIs, the scheme provides a significant boost with a clear financial ceiling.

• Scale of Assistance: The maximum assistance provided to a single State EDI is capped at ₹3.00 crore (Rupees Three Crore). This is a substantial grant aimed at making a transformative impact on the institution’s capabilities. It’s important to note that this assistance can be availed even if the institute has received a grant under the ATI scheme in the past, allowing for continuous upgradation.
• Permissible Expenses: The ₹3.00 crore grant is specifically earmarked for:
  • Development of Physical Infrastructure: Construction of buildings, classrooms, etc.
  • Procurement of Training Aids & Equipment: This includes everything from projectors and smart boards to computers, furniture, and specialized machinery relevant to the training being offered.
  • Faculty Training and Development: Investing in the skills of the trainers themselves to ensure they are equipped to teach modern curricula.
  • Capability Development: Strengthening the institution’s ability to conduct research, studies, and evaluations on MSME-related issues.
• What is NOT Covered: The grant explicitly excludes the cost of land and the construction of staff quarters, ensuring that the funds are directed purely towards enhancing the core training and academic infrastructure.

Simulated Case Study: How “Rajasthan Udyam Protsahan Kendra” Could Use the ₹3 Crore Grant

Let’s imagine a State EDI in Rajasthan wants to tap into the state’s potential in solar energy and handicrafts e-commerce. Their proposal for the ₹3 crore ATI grant could look like this:

• New Solar Technology Wing (₹1.50 Crore):
  • Construction of a new workshop and two classrooms.
  • Procurement of solar panel installation kits, testing equipment (multimeters, solar analyzers), and inverters for hands-on training.
• Digital Marketing & E-commerce Lab (₹0.75 Crore):
  • Setting up a 40-seater computer lab with high-speed internet.
  • Purchasing licensed software for graphic design, video editing, and digital marketing analytics.
  • Procuring cameras and lighting equipment for product photography, specifically for local artisans.
• Faculty Upgradation & Curriculum Development (₹0.25 Crore):
  • Sending 5 faculty members for an advanced “Training of Trainers” program on renewable energy systems.
  • Hiring consultants to develop a new NSQF-aligned curriculum on “E-commerce for Artisans.”
• Library & Resource Centre Modernization (₹0.50 Crore):
  • Digitizing the library catalogue.
  • Subscribing to international journals and databases on entrepreneurship and technology.
  • Purchasing new furniture and upgrading facilities.

This targeted investment, funded by the ATI scheme, would directly equip the youth of Rajasthan with skills for high-growth sectors, fostering local entrepreneurship.

C. Assistance for Conducting Training Programmes

Beyond bricks and mortar, the ATI scheme also supports the very act of training. It provides funding based on prescribed rates to make the training programs financially viable for the institutions and affordable for the participants. For 2025-26, these rates are crucial for planning training calendars.

The assistance is calculated on a per-trainee, per-hour basis.

• Category I Courses: ₹38.50 per head per hour. This rate applies to higher-level, more intensive, or technologically advanced courses. These would typically be programmes in areas like advanced manufacturing, IT/ITeS, cybersecurity, or specialized management programmes.
• Category II Courses: ₹33.00 per head per hour. This would cover most intermediate-level skill development programmes (ESDPs) that offer a blend of theoretical knowledge and practical skills in conventional trades.
• Category III Courses: ₹27.50 per head per hour. This rate is for foundational or shorter-duration programmes, such as basic entrepreneurship awareness programmes (EAPs).
• Training of Trainers (ToT): ₹60.00 per head per hour. Recognizing the immense multiplier effect of training the trainers, the scheme offers the highest rate for ToT programmes. This ensures that faculty at these institutions remain at the cutting edge of their fields.

This tiered structure allows institutions to receive appropriate financial support based on the complexity and resource intensity of the courses they offer, all aligned with the National Skill Qualification Framework (NSQF) which standardizes skills and qualifications across the country.

The Application Process – A Step-by-Step Guide for 2025-26

Applying for the ATI Scheme is a formal process that requires meticulous planning and documentation. For any eligible institution wishing to avail the grant, following the correct procedure is key to a successful outcome.

Step 1: Groundwork and Proposal Formulation

This is the most critical phase. The success of the application hinges on a well-researched and convincingly written proposal, commonly known as a Detailed Project Report (DPR).

Key Components of a Strong DPR:

1. Institutional Profile: A brief history of the institution, its mission, past achievements, and existing infrastructure.
2. Justification for Assistance: A clear explanation of why the grant is needed. This should link the proposed project to state/national priorities, local industry demands, and future job market trends for 2025-26 and beyond.
3. Detailed Infrastructure Plan: Precise details of the proposed civil works, including architectural drawings and cost estimates certified by a competent authority (like the State PWD).
4. Equipment Specification: A detailed list of all machinery, equipment, and software to be procured, including specifications and estimated costs with quotations where possible.
5. Projected Outcomes & Impact Analysis: This is crucial. The DPR must quantify the expected benefits. For example:
   • “The new lab will enable us to train 500 students annually in drone technology, with a projected placement rate of 70% in the first three years.”
   • “The grant will increase our total training capacity by 40%, allowing us to reach an additional 2,000 aspiring entrepreneurs annually.”
6. Financial Projections: A clear budget outlining how every rupee of the grant will be spent.
7. Implementation Timeline: A realistic, phased timeline for project completion, from procurement to the commencement of new training batches.

Step 2: Assembling the Documentation

Alongside the DPR, the application must be supported by a set of official documents:

• A formal covering letter from the head of the institution.
• For State EDIs, a recommendation letter from the concerned State/UT Government is mandatory.
• A copy of the institution’s registration and bylaws.
• Annual reports and audited financial statements for the last three years.
• A formal resolution from the institution’s Board of Governors or equivalent managing body authorizing the application.
• The institution’s Bank Account details and PAN Card.

Step 3: Submission and The Evaluation Pathway

Once the proposal is complete, it must be formally submitted to the designated authority in New Delhi.

• Whom to Contact/Apply: The complete application package should be sent to: The Director/Deputy Secretary (EDI), Ministry of Micro, Small and Medium Enterprises, Udyog Bhawan, Rafi Marg, New Delhi – 110011.
• The Screening Committee: The proposal is not approved by a single individual. It is placed before a Screening Committee within the Ministry. This committee is composed of senior officials and experts. Recent proceedings have shown that representatives from key institutions like NI-MSME are also part of these meetings, bringing their technical expertise to the evaluation process. The committee scrutinizes the proposal for its viability, alignment with scheme objectives, and potential impact.
• Approval: Based on the positive recommendation of the Screening Committee, the proposal is forwarded for final approval from the competent authority within the Ministry, typically the Secretary (MSME).
• Sanction and Disbursement: Upon approval, a formal sanction order is issued. The funds are typically released in installments, linked to the physical and financial progress of the project. For example, the first installment might be released to start the civil works, with subsequent installments released upon the submission of progress reports and Utilization Certificates (UCs) for the funds already spent.

From Grant to Ground Reality – Impact and the Road Ahead

The true measure of the Assistance to Training Institutions Scheme is not in the crores sanctioned but in the lives transformed and the businesses built. The impact is a powerful ripple effect.

• Better Infrastructure leads to…
• Higher Quality Training which creates a…
• More Skilled Workforce that can establish…
• Competitive MSMEs which in turn generate…
• More Jobs and Economic Growth.

Real-World Use Cases (Illustrative)

• Use Case 1: A Tool Room in Ludhiana, Punjab. Using an ATI grant, the centre procured advanced laser cutting and 3D printing machines. It now offers a specialized course for the local bicycle and auto parts industry on rapid prototyping, helping MSMEs reduce their design-to-market time significantly.
• Use Case 2: A State EDI in Kerala. With support from the ATI scheme, the EDI established a state-of-the-art food processing and packaging lab. It now trains entrepreneurs on creating value-added products from local spices and seafood, with a special module on meeting international export and hygiene standards.

Challenges and the Road Ahead for 2025-26

While the scheme is powerful, its effectiveness depends on overcoming certain challenges:

• Timely Fund Flow: Ensuring that sanctioned funds reach the institutions without bureaucratic delays is crucial to maintain project momentum.
• Measuring Real-World Impact: Moving beyond just the number of people trained to tracking how many successfully started enterprises or secured better-paying jobs.
• Keeping Curricula Relevant: The pace of technological change is relentless. Institutions must be agile in updating their courses to meet the dynamic needs of the industry.

Looking ahead, the ATI scheme will continue to be a cornerstone of the Indian government MSME policy. The focus for 2025-26 and beyond will be to leverage this scheme to build capacity in future-ready areas: Green Skills, Digital Economy, Advanced Manufacturing, and AI. The goal is to ensure that India’s demographic dividend is equipped with the skills needed to build a prosperous and resilient nation.

Comprehensive FAQ (Frequently Asked Questions)

Conclusion: Powering ‘Viksit Bharat’ Through Skill and Enterprise

The Assistance to Training Institutions (ATI) Scheme stands as a testament to the Indian government’s foresight and unwavering commitment to nurturing the twin engines of economic growth: the MSME sector and a highly skilled workforce. As India strides towards its ambitious goal of ‘Viksit Bharat’ by 2047, the foundational support provided by schemes like ATI becomes not just beneficial, but indispensable.

In 2025-26 and beyond, the ATI scheme will continue to play a pivotal role in equipping national and state-level training institutions with the cutting-edge infrastructure and resources necessary to meet the evolving demands of Industry 4.0 and the global economy. By investing in the “farms” of skill development, the scheme ensures a steady harvest of skilled professionals and dynamic entrepreneurs, capable of navigating technological shifts and competing on the global stage.

The ATI Scheme is more than a financial grant; it’s a strategic enabler, fostering a robust ecosystem where innovation flourishes, jobs are created, and economic empowerment reaches every corner of the nation. Its continued success will be instrumental in transforming India’s demographic dividend into a powerhouse of productivity, securing a prosperous and resilient future for all.