₹1,386 Crore K-QUEST Project Announced in Karnataka Budget 2026 to Modernise Technical Education

Karnataka Chief Minister Siddaramaiah announced while unveiling the state budget on March 6 that the government would be launching a new project named K, QUEST (Karnataka, Quality Upgradation for Employment and Skills Transformation) focused on improving the state's skill development ecosystem. The total budget for the project is Rs 1, 386 crore for a period of five years.

"The project will be rolled out in collaboration with Asian Development Bank and seeks to renovate and modernize the physical facilities as well as enhance the quality of training provided in Government Industrial Training Institutes (ITIs), Karnataka German Technical Training Institutes (KGTTIs), Karnataka Skill Development Authority (KSDA), and Junior Training Schools (JTSs) located throughout the state, " he remarked.

While releasing the Budget for 2026, 27, Siddaramaiah mentioned that the advent of the new scheme is to support the growth of the workforce by teaching skills that are in demand by the industry and by making the training system responsive to the changing needs of business.

Upgrading ITIs and industry-linked training

Under the Centre's PM SETU scheme, the state plans to upgrade government ITIs through a hub-and-spoke cluster model in collaboration with the central government and industry partners. Two such clusters will be taken up in 2026-27 at a unit cost of Rs 241 crore.

The government also announced that Schneider Electric Youth Impact Centres will be set up in Mysuru and Kalaburagi at a cost of Rs 16 crore each. The centres are expected to train and facilitate employment for about 2,000 students every year.

To encourage greater participation of women in technical education, the government said female ITI trainees will receive an annual tuition fee waiver of Rs 1,200. Additionally, ITI students will be taught two extra subjects and will be awarded Pre-University certificates, enabling them to pursue higher education alongside vocational training.

New skilling infrastructure and innovation initiatives

A Technology Centre in Precision Tool Engineering will be established at GTTC-MSDC in Koppal in collaboration with Aequs Toy Cluster Industry, with a total project cost of Rs 20 crore, including a Rs 10 crore grant from the Kalyana Karnataka Region Development Board (KKRDB).

The government will also create a State Challenge Fund with an initial corpus of Rs 1 crore to support demand-driven skill development at the district level and address local workforce needs.

Further, the state will set up the Karnataka Skill Intelligence and Strategy Unit (KSISU) under KSDA in collaboration with the Karnataka Digital Economy Mission (KDEM). The unit will work on labour market intelligence and develop global skill partnerships with select countries and institutions.

All existing skill development schemes and services will also be integrated through a Unified Skill Development Portal, to be developed with an outlay of Rs 2 crore.

Focus on youth employment and social sectors

The government said Rs 913 crore has been disbursed under the Yuva Nidhi scheme as unemployment allowance to 3.08 lakh beneficiaries through direct benefit transfers.

So far, 80,086 candidates have been trained under various departmental programmes, while the CMKKY 2.0 scheme has been launched to boost employability and entrepreneurship among youth.

In addition, 11 mega job fairs organised by the government saw participation from 1.16 lakh candidates and 1,946 employers. Of these, 19,863 candidates have been selected, while the appointment process for 35,983 candidates is underway.

The budget also announced care entrepreneurship training for women self-help groups, aimed at meeting the rising demand for elderly care and postnatal care services in rural areas.

Marking 2026 as the International Year of Women Farmers, state will provide agricultural skill development training to 5,000 women farmers to promote sustainable rural livelihoods.

Additionally, Rs 7 crore has been allocated to conduct surveys, issue identity cards and vending certificates, and establish Town Vending Committees to support the economic and social empowerment of street vendors.