Centre for Overseas Placement in selected cities through private sector participation. Skill development Government of Gujarat
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1 Centre for Overseas Placement in selected cities through private sector participation Skill development Government of Gujarat
2 Contents Project Concept 3 Market Potential 5 Growth Drivers 6 Gujarat Competitive Advantage 7 Project Information 7 - Location - Infrastructure Availability/ Connectivity - Manpower - Key Players - Potential Collaboration Opportunities - Key Considerations Project Financials 10 Approvals & Incentives 11 Key Department Contacts 12 Page 2
3 Project Concept- Overseas placements Overseas placement shall assist the candidates based on their skills and qualification background for employment opportunities in foreign countries,including Gulf, Middle East & Africa For meeting the demands of skilled, semi skilled and minimally skilled labour, technicians, engineers, IT professionals and doctors in foreign countries, Operation & Maintenance of existing centres of overseas placement is proposed Objectives of centre for overseas placement The centre of overseas placements is aimed at creating a hub of international skilled / trained workforce to provide assistance to the candidates who are searching for jobs in MNCs abroad to disseminate information to interested persons regarding overseas employment opportunities, academic courses, passport, visa and immigration rules, regulations etc to make the best fitment between client companies and premium talent O&M Methodology Hire a team of professionals who have good analytical skills Team of professionals Talk to company After understanding the requirement of both the parties, they finally schedule the interview Team of professionals Talk to candidate USP of the project: Government would provide recognition to the placement centre. This will help the centre to have trust of the hiring companies as well as students Page 3
4 Project Concept Project facets: Role of private party Data base of candidates Maintaining the updated database of enrolled students Opportunities Mapping Opportunities mapping for overseas studies and placements Act as a portal where global companies may demand for bulk skilled manpower Tie-up & coordinate with technical institutes Tie-ups with technical institutes (polytechnics/ ITIs) for introducing short duration & demand-driven courses based on the interaction with industries abroad Placement assistance to the candidates on successful completion of course Soft skill trainings, Languages and International Test Impart soft skills trainings such as Business Etiquette, Communication Skills, Writing skills Short Term Foreign Languages courses may be offered May facilitate the requisite test such as Toffel, IELTS etc Post-placements assistance VISA assistance Handling all the intricacies involved in an international recruitment procedure, providing fast and dependable services Medical check-up A thorough check up, complying with the immigration norms as well as regulations of several corporates, ensuring that the candidate is physically fit for the job Travel & consulate formalities Arranging for tickets, accommodation and all the paper work. Obtaining Emigration Clearance from the concerned Government Department for the candidates Orientation session After selection & before final departure, an orientation program is conducted where in candidate is familiarized with the work culture of prospective organization, industrial practices, safety issues, labour laws and other relevant issues Page 4
5 Market Potential Growth Drivers for centre of overseas placements Demographic dividend 66% of the population in India is below 35 years, with the median age of 27 years India has young work force capable of supplying labour to rest of the economies As it is taking up skill development programmes of its young people suitable to the emerging needs of global economy 0-14 years, 31% >34 years, 34% years, 35% Greater urbanization The proportion of the working-age population is expected to rise to 46% by 2020, raising the amount of income per household Government initiatives The Government of India has placed in position a three tiered initiative led by the Skill Development Council of Prime Minister in partnership with industry and state governments: skill 500 million workers by 2022 with the objective of meeting, not only the emerging requirements of Indian industry within aspire to become a hub of supplying trained manpower globally as against 40 million people currently who have received any kind of formal or non-formal training; the vision envisaged creation of a pool of 500 million skilled people by 2022 Abundant & low cost manpower India has abundant low-cost human resource In India there would be up to 58 million surplus low-skill workers in 2020 with a glaring need of up to 45 million medium skill workers i.e. these with secondary and vocational training ** Source: ** India aims at becoming global hub of supply of skilled manpower-sardana Page 5
6 Growth Drivers Foreign exchange remittances Overseas employment generates foreign exchange remittances that serve as a growth driver in the domestic economy because they boost consumption and spur economic growth Policies of immigrantdestination countries Policy makers apply skilled labour gap projections to their immigration policies They design programs to actively attract immigrants with specific skills to specific occupations 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 Ease the pressure of unemployment Overseas employment would ease the burden of unemployment within the country Preference for Skill development Current Government has a lot of emphasis on skill development, which could be achieved by setting up specialized universities, vocational training institutes and develop skill base Incentivising the skilling sector Page 6
7 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 Project Information: Location Ahmedabad & Surat Ahmedabad Surat Gujarat has 786-Industrial Training Institutes Apprentice training schemes 500- Kaushalya Vardhan Kendras 200,000-E-Mpower (electronic manpower) 790- Vocational training providers 6.65 lakh- Training Capacity Possible locations could be Ahmedabad, Surat and so on. Infrastructure Availability / Connectivity Gujarat is well connected to all major locations such as Delhi, Mumbai and other nearby states from where Broad gauge railway line passes through. Gujarat is well connected to all major locations such as Delhi and Mumbai through Delhi- Mumbai Industrial Corridor ( DMIC) and neighbouring states Gujarat has an international airport in Ahmedabad. 8 domestic airports in Surat Vadodara, Rajkot, Bhavnagar, Junagadh, Jamnagar, Porbandar & Kachchh which is well connected with metro cities in India Gujarat has a major seaport in Kandla and around 40 non major seaports Page 7
8 Project Information Manpower Availability:- For operation & maintenance of the existing Centres of overseas placement Ahmedabad Surat Centre of overseas placements will be a hub of international skilled / trained workforce. It will cater to candidates who are searching for jobs in the foreign countries. It will also cater to international organizations looking for qualified candidates for overseas placement. Tentative manpower requirement Position & Responsibility Number Managing Director 1 Executive Officer 1 Head (Operations, HR, Administration, IT) 4 Industry specific experts 10 Negotiators 2 Pre-departure associates 2 Clerical Staff (admin, accounts etc.) 5 Other Staff (peon, security) 3 Total 28 Page 8
9 Project Information Key Players Placement Consultants, Agency, Firm, Company, Ahmedabad Konnect overseas placements, Vadodara Overseas placement service, Bharuch Victory international, Ahmedabad Sunrise placement consultant, Rajkot Y-Axis, Ahmedabad United HR solutions private limited, Ahmedabad Potential Collaboration Opportunities Overseas Placement Bureau, Haryana G.Gheewala Manpower Consultants, Mumbai Randstad India Limited, Chennai Kelly Services, Mumbai ABC Consultants, New Delhi Asia Power Overseas Employment Services, Mumbai Creation Softech Technologies Private Ltd, Delhi Head Hunters India, Bangalore Perfman HR Consultants Pvt Ltd, Mumbai Key Considerations Irregular workers in the middle east There could be two target segments of candidates: highly skilled and semi skilled After BREXIT new potential has been created for overseas placements Better links between industry and research to stimulate innovation Connecting institutions through networks, alliances and consortia Page 9
10 Project Financials Estimated Project Cost The estimated project cost has been calculated based on capital investment of a centre. However, it may vary by individual project. Project cost Project components & specifications Re-furbishing: existing infrastructure Built-up area: 500 sq. meter Average rate: INR per sq. meter Cost (INR crore) 0.5 Training Classroom (400 sqm) 1.0 Computer Centre 0.5 Furniture % 0.22 Indicative Project cost per location 2.42 Indicative Project Cost for both locations 4.84 Note: The figures presented here are indicative. However, the actual cost may vary depending upon the scale and requirement of the project at the time of developing the facility Page 10
11 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 Page 11
12 Directorate of Employment & Training, Labour & Employment Department, Gujarat State Gujarat Council of Vocational Training Ministry of Overseas Indian Affairs National Skill Development Corporation, Gujarat Industrial Extension Bureau Ministry of External Affairs 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
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