Setting up a Common Utility Centre for Entrepreneurs. Skill Development Government of Gujarat

Transcription

1 Setting up a Common Utility Centre for Entrepreneurs Skill Development Government of Gujarat

2 Contents Project Concept 3 Market Potential 5 Growth Drivers 6 Gujarat Competitive Advantage 7 Project Information 8 - Location - Infrastructure Availability / Connectivity - Manpower Requirement - Key Players - Potential Collaboration Opportunities Project Financials 10 Approvals & Incentives 11 Key Department Contacts 13 Page 2

3 Project Concept Common Utility Centre Budding entrepreneurs need support to succeed in their respective businesses. A Common Utility Centre offers all support within the same area where a group of industries are located by providing the most commonly needed facilities such as marketing centers, testing laboratory centers, business meeting rooms for business development and collaboration which will motivate entrepreneurs and new entrants to come forward to develop their businesses. These centers help reduce operational costs and investment. Benefits - Common Utility Centre Low Cost Networking Amenities Environment Lower overhead expenses such as rent & utilities Expand personal networks High-speed internet, meeting rooms, conference / videoconference calls Professional for business growth Basic Offerings The Center will offer the following: Fully furnished private offices available on: Reservation basis Monthly basis Weekly basis Conference rooms with: HD monitor White board Projector Different seating capacities to accommodate one-day seminars, business meets and workshops 24/7 high-speed internet connection Information desk Kitchen bar Printing / photocopying area Restrooms Page 3

4 Project Concept Key Highlights Common Utility Centers are essential and much needed for strengthening MSMEs and supporting budding entrepreneurs in any state. To ensure success of any Utility Center, it is imperative that it should be implemented effectively, and this can be achieved through a combination of infrastructural interventions and capacity building. Key Highlights: Individual units would be engaged and suggestions from entrepreneurs would be considered for building a successful framework for delivering desired results Highly talented workforce will be appointed at this center to answer various structural problems related to land, skill and environmental compliances faced by entrepreneurs The Centre will offer the following value-added and plug-and-play facilities: Research labs Design centers Testing labs R&D centers Tie-ups with virtual universities and training academies Shared services like legal, accounting, finance Managerial support to develop businesses / incubators to develop entrepreneurial skills such as building a business around an idea, creating and testing a prototype and understanding the market The above infrastructure will be custom-made as per the requirements of industry. Incubator Zone Startups - Case in Point Incubator Zone Startups is hosted at the Bombay Stock Exchange (BSE). There are currently 42 enterprises at the Dalal Street office. The advantage of the BSE location is that incubatees can easily access good quality mentors because of the network at the Stock Exchange. Startups are, additionally, able to get first orders relatively easily from nearby firms. Zone Startups India offers a collaborative culture strategically designed to propel learning and generate success. Entrepreneurs are from diverse academic disciplines, backgrounds and business stages. It is flexible and inclusive and companies can enter at different stages through a variety of supported pathways. They can remain and grow here until they feel ready to move on. Website: Page 4

5 Market Potential Innovative minds are creating significant growth opportunities for every stakeholder within the ecosystem India ranked 3rd globally with more than 4,200 tech startups Technology Start-ups by Year of Inception ~2,100 ~1,200 ~ (P) Source: NASSCOM (2015). Report: Start-up India Momentous Rise of the Indian Start-up Ecosystem Page 5

6 Growth Drivers High growth of investor ecosystem: 2.3X growth in number of investors since X growth in start-ups funded since 2014 Working Age Population 62% of India s population is in the working age group (15-59 years); more than 54% of the total population is below 25 years of age* Inspiration from successful start-ups in sectors: E-commerce Food delivery marketplace Mobile advertising and discovery platform Cluster based development Industry specific clusters (group of small entities forming cluster) are being set up, which need common utility facilities i.e. Lab, R & D, Product testing facilities etc.) Entrepreneurial environment: A growing platform with a large number of events that help in recognition and networking Favorable government policies such as Startup India will create huge demand for common utility facilities Source * National Policy for Skill Development and Entrepreneurship 2015 Page 6

7 Gujarat Competitive Advantage Strong Fundamentals A strong demographic profile - population of 60 m with more than 60% of the population between the age group of years as per census 2011 One of the highest urbanization levels (as per census 2011) 43% Witnessing a high and growing literacy rate of 79% Male literacy rate is percent Female literacy rate is percent In the state budget , Gujarat government announced plans to invest USD m for renovation, repairing and maintenance of universities. The Gujarat government also announced plans to construct buildings for 12 government engineering colleges in the state by investing USD 3.39 m during Industrial Infrastructure As of July 2015, Gujarat had seventy nine SEZs; of which, eighteen are operational, twenty six are notified, thirty one are formally approved and four have in-principle approval India s first SEZ for global financial services GIFT aspires to catalyze India s large financial services by offering world-class infrastructure to attract top talent in the country The state s manufacturing industry is supported by more than 0.6 m MSMEs employing nearly 3.9 m people in Gujarat Infrastructure plans over next 5-7 years will lead to an increased demand: 7 new industrial cities planned 18,637 kilometer of new expressways 24 cities are currently in various stages of planning metro rail Port sector capacity addition to the tune of 1 b tons is planned in the next 7 years Page 7

8 Project Information Location Ahmedabad Industrially Developed 12 Industrial Estates 12 SEZs 10 Industrial Parks Business conglomerates present Adani Group, Reliance Industries, Arvind Mills, Shell & more Centrally located with good accessibility Witnesses inward migration as a result of being commercially developed Centre for Innovation, Incubation and Entrepreneurship was setup at the Indian Institute of Management Ahmedabad Infrastructure Availability / Connectivity Ahmedabad has an extensive outlay of existing infrastructure - rail, road and air - which make it an excellent investment destination. Ahmedabad is connected via rail broad gauge to Delhi and Mumbai The Government is also developing a Ahmedabad Vadodara rail link In October 2014, a metro project was approved for Ahmedabad and Gandhinagar The city is connected to Delhi Mumbai Industrial Corridor (DMIC). DMIC is intended to be the manufacturing hub serviced with world class infrastructure. It also has a very good connectivity with other cities of the state such as Vadodara (182 km) and Surat (278 km). Ahmedabad has an international airport with cargo handling capacity of ~50,000 tonnes per year. A new international airport at Dholera is under development which is expected to become operational by Ahmedabad is also in close vicinity of other domestic airports such as Surat and Vadodara. The city is also connected to several leading sea ports such as Dahej, Kandala, Mundra and Nhava Sheva sea port. Most of the sea ports are within 300 km from Ahmedabad. Page 8

9 Project Information Manpower Requirement 5 Business Strategy Persons 8 Technical Advisors (legal, finance, operations, accountant) 5 Workshop Advisors 10 Mentors 3 Operations Persons (HR, finance, accounts) 3 Steering Committee Members TOTAL 34 persons Existing Players Centre for Innovation, Incubation and Entrepreneurship, IIM Ahmedabad Entrepreneurship Development Cell, IIT Roorkee SIDBI Innovation and Incubation Center, IIT Kanpur Potential Collaboration Opportunities Education Institutes Indian Institute of Management, Ahmedabad Mudra Institute of Communications Institute of Rural Management Corporates The Centre will partner with industry leaders to develop, strengthen and provide visibility to the ecosystem Page 9

10 Project Financials Project Cost Assumptions: Land area: 8,000 sq meters Fixed assets: 150 laptops 15 projectors 10 printers Furniture Plant and machinery has not been included as this will be custom-made as per the requirements of industry Project components & specifications Building (office, computer labs, conference / seminar rooms) (Land area: 8,100 sq meter, Built-up area: 5,600 sq meter, Average rate: INR 25,000 per sq meter) Cost (INR crore) Site Development (internal roads, water drainage system, lighting) (Average rate: INR 1,200 per sq meter) 0.96 Miscellaneous fixed assets (Furniture and fixtures, office equipment - laptops, projectors) 1.06 Indicative Project Cost Note : Indicative Project Cost may vary subject to the scale and requirement of the Project Page 10

11 Approvals & Incentives Incentives from Government of India Modified Industrial Upgradation Scheme (MIIUS) Contribute up to 75% each of the project cost subject to a ceiling of INR 50 Crore Central grant for Physical infrastructure will be upto 25% of the central grant subject to a ceiling to INR 12.5 crore 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 One time assistance up to 80 % of the total expenditure limited to INR 10 Crore for the cost of Plant & Machinery testing equipment, electrification, installation shall be considered Scheme Name Assistance in Setting up of Common Facilities Assistance will be considered up-to 60% of project cost or INR 25 Crore per project whichever is less Assistance for Industrial Infrastructure Interest 5% of term loan for Machinery & Equipment with Maximum limit of INR 25 lakh per annum for period of 5 years The assistance will be available to enterprise set up any where in the State with permission from appropriate local authority Maximum quantum of interest subsidy shall not exceed 7% Assistance for Micro, Small and Medium Enterprises (MSMEs) Assistance for Interest Subsidy to Service Enterprise Note: A private investor would be able to avail Government schemes subject to approval by the concerned Ministries / Departments Scheme applicability will also depend on the industry type manufacturing or service industry Page 11

12 Approvals & Incentives Approvals Required Registration of business organization Local body clearances Acquisition of land from concerned office / owner Arrangement of power with zonal distribution company Arrangement of water with concerned municipal corporations Any other clearances required Possible Project Implementation Model Role of Stakeholders Government Monitor Financial assistance (subject to approval) Approvals, clearances Industry Setting up of Common Utility Centre Operate, Maintain and Finance Capital Investment and Operating Cost Collect Facility User charges Page 12

13 Directorate of Employment & Training Ministry of Skill Development And Entrepreneurship Gujarat State Portal Gujarat Industrial Development Corporation National Skill Development Corporation Industries Commissionerate 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