Multiskilling & Certification Centre for Chemical Sector

Transcription

1 Multiskilling & Certification Centre for Chemical Sector Skill development Government of Gujarat

2 Contents Project Concept 3 Market Potential 5 Growth Drivers 6 Gujarat Competitive Advantage 7 Project Information 7 - Location/ Size - Infrastructure Availability/ Connectivity - Raw Material/ Manpower - Key Players/ Machinery Suppliers - Potential Collaboration Opportunities - Key Considerations Project Financials 11 Approvals & Incentives 12 Key Department Contacts 13 Page 2

3 Project Concept- Hub and Spoke Model The Indian chemical industry is worth $136 b approximately in 2015 and is likely to grow at a CAGR of percent over next five years.** As per IBEF, the incremental human resource requirement by 2022 in chemical & pharmaceutical industry is estimated to be 1.9 m from 1.7 m in 2008 at a CAGR of 5.5% Gujarat has the highest concentration of chemical manufacturing industry & accounts for 51% of total chemical production Industrial profile of Vadodara* Repairs & Services unit Textile Metal works Chemicals Equipment / machinery Rubber Food products Under MGNISDE for chemical sector specific skill training, spoke training institutes will be set up. The institute is to be set up on PPP mode partnering with industries pertaining to chemical sector to impart world class advance technological training, research cum certification. The courses are modular, market-driven and of long and short duration. Chemical Industry- an overview Miscellaneous units Miscellaneous units Food products Rubber Equipment / machinery Chemicals Metal works Textile Repairs & Services unit Vadodara is famous as a Gateway to the Golden Corridor, because both the rail and road route connecting Delhi-Ahmedabad- Mumbai passes through Vadodara, including Delhi-Mumbai Industrial Corridor (DMIC) Focus industries in Vadodara are Chemicals & Petrochemicals, Pharmaceuticals and Biotechnology Source: * Brief Industrial profile of Vadodara, MSME- development Institute, Government of India,-2012 Page 3 ** Frost & Sullivan, Indian chemical Industry and mega trends impacting the industry -2014

4 Project Concept Project facets Objectives of the CoE The Centre will prepare the beneficiaries to work at various chemical manufacturing industries, laboratories, research centres and so on To impart entrepreneurial skills to enable trainees to set up their own testing laboratories, startups in chemical space in future The Centre will additionally train students in personality, communication skills, customer service, financing and business management skills The skill courses offered will empower young people and create employability, thus bridging the skill gap that India faces Levels of skill development in chemical sector LEVEL 4 LEVEL 1 basic skills that are aimed at increasing the employability of people with minimal education with a short term course LEVEL 2 skills that require technical training inputs like Vocational Training on "Chemical Plant Operators & knowledge of plant O&M LEVEL 3 skills that require degrees in chemical sector and involve highly technical or commercial operations skills that involve research and design Key skill in chemical sector- in demand Industrial and chemical manufacturing attendants, process attendants, manufacturing assistants, lab attendants, equipment operators, sales personnel The Institute will partner with the training partners (recognized training organizations in chemical sector), strategic partners (chemical industry) and the mobilization partner (to mobilize the candidates for various levels of skilling Page 4

5 Project Concept Functions of the CoE The scope may include the following activities: Project Report: Will formulate a comprehensive report for proposed skill development activities, stating the targets, availability of sufficient number of trainers, forward and backward linkages for the purpose of placement, training methodology, and other relevant details Content and Detailed Syllabus: Will help adopt courses in accordance in line with the sector requirements and Directorate General of Training. Use of multimedia content and information technology applications will be encouraged Trainer Availability: Will identify suitable training partners and ensure highest quality training; will also collaborate with technical agencies and work on keeping the trainers updated Centralized Web-based MIS: An online tracking system of training will be developed by the Implementation cum Assignment Partner. They shall enter all requisite information in the MIS system. MIS data will be the only source of information and payment to these partners Training and Skilling: The Partners shall conduct skill development trainings in line with the overall objectives and framework that will be agreed upon with the industry Assessment and Certification: The Partners shall arrange for assessment and certification of each trainee, as per National Council of Vocational Training and Gujarat Council of Vocational Training Certification Other facilities at CoE will include: Computer laboratory Library Conference and meeting rooms Hostel Cafeteria Page 5

6 Market Potential Growth Drivers for skilling in chemical sector Demographic dividend 66% of the population in India is below 35 years, with the median age of 27 years driving consumption. Young population forms the potential contributors for the manufacturing and production sector 0-14 years, 31% >34 years, 34% years, 35% Safety preparedness Vadodara is vulnerable to chemical and industrial hazards. Therefore, the place must build capacity for prevention, preparedness, response and recovery from chemical emergencies and disasters Safety provisions and other mitigation measures in the industry may reduce the probability, frequency, or severity of chemical emergencies, but the risk of such emergencies exists. Therefore, skilling in chemical industry is of paramount importance to be prepared at all times Specialty chemicals segment has immense growth potential driven by high growing end-use industries future demand of specialty chemicals, this industry will reach value of $38 b by the end of 2017 Speciality chemical segment Specialty chemical segment in India is poised for substantial growth and offers immense potential for investment as well as employment generation It is estimated that additional investment of $ 7-10 b is feasible in this segment over the XII th plan period which could generate additional direct employment of quarter of a million people and much more indirect employment India will need over 14,000 highly skilled, chemical engineers within the next decade to join the specialty chemical industry alone Manpower requirement A potential short fall of 8,000 to 10,000 chemical engineers is indicated driven by limited talent from Tier 1 universities Lack of attractiveness of the chemical sector for employment Page 6

7 Growth Drivers Low cost, high end products India s expertise in developing low cost yet high end chemical products is the key growth driver for Indian chemical exports. India exports significant volumes of generic agrochemicals and pharmaceuticals. 40% of India s agrochemicals sales as well as 60% of pharmaceuticals sales are through exports Demand-Supply Gap Analysis Chemical industry will require additional 4.5 to 5 m skilled workers by FY17, including 0.25 m professional manpower for the specialty chemicals industry* Increasing Working Age Population The State is expected to experience an increasing working age population that will provide an impetus to the demographic dividend in the future It is estimated that the State would witness a gross addition of more than 32 lakh people and a net addition (excluding the number of retirements from the existing labour force) of more than 15 lakh people to the labour force during the period R&D strengths Indian industry has certain inherent strengths as far as R&D is concerned. Drug discovery costs USD million in the west whereas it costs only USD 10 million in India. There is also a large pool of less expensive, English-speaking, scientific and engineering workers. In spite of this, the market size of patented drugs in India is currently very small Need of the hour is to focus on imparting demand led skill training with effective monitoring mechanisms at various levels of implementation Preference for Employment Government could set up specialized universities, vocational training institutes and develop skill base Page 7 Source: * Indian chemical industry, XIIth five year plan

8 Gujarat Competitive Advantage Key Differentiators of Gujarat The demographic and economic contour of Gujarat provides opportunity for skilled personnel for economic development through skill up gradation The state of Gujarat has been on a high growth path. It has experienced an average growth rate of over 8% annually for the last three years As per National Skill Development Corporation estimates, Gujarat has a significant demographic dividend in the near term, with a rising working age population Gujarat is expected to register a net addition of lakh to the labour force during , and another lakhs during Urgent need to scale up the skill training infrastructure in view of the huge demand- supply gap Location Dumad Village, Vadodara, land has been identified by the Government Dumad, Vadodara Vadodara- Gateway to the golden corridor Located with good accessibility 15 Industrial Areas 1357 chemical units small scale Industry units Several Government Companies like GSFC and GACL have their manufacturing plants in the district Infrastructure Availability / Connectivity Vadodara is also well connected to all major locations such as Delhi, Mumbai and Ahmedabad as well as with other districts of the State from where Broad gauge railway line passes through Vadodara is well connected to all major locations such as Delhi (1,028 km), and Mumbai (448 km) through Delhi-Mumbai Industrial Corridor ( DMIC) and on National Highway No.8 Vadodara has a domestic airport at Harni, which is well connected with major metro cities in India including Delhi, Mumbai, Chennai, Banglore and Ahmedabad Water supply for industrial purposes in the district can be obtained from three main sources, viz. Gujarat Water Supply and Sewerage Board (GWSSB), Irrigation canals and Sardar Sarovar Project Page 8

9 Project Information Land has been identified and shall be available for setting up of the Institute These Skilling centers will create a strong base for manpower serving needs of chemical industry Dumad, Vadodara It will promote research and development to initiate innovate ideas in project financing It will also work towards improving chemical skills of the population of Gujarat State run Gujarat State fertilizers and chemicals limited (GSFC) is spending INR 100 crore in setting up a University on a 25 acre land near IT zone in Dumad village. The proposed skilling center for Chemical sector will be opened in the premises of the GSFC University. Manpower requirement Position & Responsibility Number Managing director 1 Director 1 Deputy director (Training, Apprenticeship, Employment, Admin, cash) 5 Joint Secretary 1 Training officers 15 IT team 5 Librarian 2 Clerical Staff (admin, accounts etc.) 10 Other Staff (peon, security) 5 Maintenance Department 9 Total 54 Page 9

10 Project Information Key Players INDUSTRY PRODUCTS Reliance Industries limited (RIL) Oil & gas exploration, refinery, polymer Gas Authority of India Limited (GAIL) Petrochemicals Tata Chemicals Alkali chemicals, fertilizers Ciba Textile dyes, additives, polymers Rallis Pesticides, fertilizers Hindustan Organic Chemicals Organic chemicals Gujarat Narmada Valley Fertilizers Corporation Fertilizers, Organic chemicals Key Considerations Supporting chemical skills is integral to the transition to safe and efficient chemical production. Optimizing public policy coordination is key to the transition Fostering portable skills and lifelong learning Matching market development to regulatory activity Focusing on transparency around policy action Developing strategic capacity within micro small and medium firms. Page 10

11 Project Information Potential Collaboration Opportunities Industry Partner State/ State Institution Reliance Ciba Rallis Tata chemicals Cadila healthcare limited Hindustan organic chemical Indian society for training & development Sardar Patel institute of public administration Industrial Training Institute Government ITI Gorwa Vakal Industrial Training Institute Government ITI Tarsali Ebrahim Bawani ITI Key Considerations Involvement of Industry and employers in the skill training structures (such as ITIs) needs to be increased Private funding in vocational education is required to ensure quality and making industryready manpower Number of skilling centres are limited and do not have the state of the art technologies and therefore there is a need to align the training with the prevailing industry requirements The condition of private industrial employments and self employment needs to be worked upon to make India a hub of skilled manpower Page 11

12 Project Financials Estimated Project Cost The estimated project cost has been calculated based on capital investment of a Skill development centre. However, it may vary by individual project. Project components & specifications Cost (INR crore) Civil Works: Classroom, laboratory, Library, Admin area, Auditorium, Canteen, Cafeteria, Toilet blocks, etc 15.3 Site development ( including but not restricted to Under ground water tank, rain water harvesting system, storm water drainage network, water treatment plant, sewage treatment plant, street lighting, development of internal roads, landscaping and grey water treatment plant and boundary walls) 2.43 Residential Staff Quarter (For fifty percent strength) 3.73 Hostel 6.12 Computer Centre 0.28 Furniture 0.3 Equipment 4.00 Indicative Project Cost Note : Indicative Project Cost may vary subject to the scale and requirement of the Project Page 12

13 Approvals & Incentives Approvals Required Registration of business organization (Local body clearances) Arrangement of power with zonal distribution company Any other clearances required Incentives from Government of India National Skill Development Corporation (NSDC) Funding Provides assistance for creation of skills infrastructure and / or working capital requirement for skill development activity for first 3 years Funding would be up to a maximum of 75% of the investment requirement Promoter Contribution shall be to the tune of minimum 25% of the investment requirement NSDC may provide funding in the form of loan, equity, preference shares, debentures and grant. However, NSDC will prefer to provide funding in form of loan Incentives from Government of Gujarat Assistance Scheme Name Marketing/publicity assistance of up to INR 10 lakh will be provided for the introduction of innovated product in the market Up to INR 10 lakh assistance will be provided for Cost of Raw Material / Components & other related equipment required for the innovative process Assistance for Startups / Innovation Govt. will support selected innovator to get free access to University / Libraries / Govt. Laboratories / PSUs to have more clarity on his innovative ideas / concept Assistance shall be 70% of total expenditure, including recurring expenditure for three years, limited to INR 20 Crore in case of national level CoE; Assistance shall be 70% of total expenditure, including recurring expenditure for three years, limited to INR 30 Crore in case of international level CoE Assistance for Centre of Excellence Page 13

14 Directorate of Employment & Training Gujarat council of vocational training Gujarat state fertilizer & chemicals limited, India National skill development corporation, Gujarat Industrial Extension Bureau Director Industrial safety & health Ministry of Skill Development and Entrepreneurship This project profile is based on preliminary study to facilitate prospective entrepreneurs to assess a prima facie scope. It is, however, advisable to get a detailed feasibility study prepared before taking a final investment decision. Directorate of Employment & Training Phone: director-det@gujarat.gov.in