Creating Self Employment

opportunities under PPP

NSIC’s model of Incubation

A beginning…

Presented by: Pralay Dey, General Manager NSIC, India

• Enterprise building is one of the critical Enterprise building is one of the critical areas of development of any country. areas of development of any country. This not only builds economy of the This not only builds economy of the country but also creates employment country but also creates employment opportunities.opportunities.

• This can be achieved by way of This can be achieved by way of providing handholding support to the providing handholding support to the first generation entrepreneurs by first generation entrepreneurs by helping them to set up their own micro helping them to set up their own micro & small enterprises.& small enterprises.

• The Training cum Incubation aims to The Training cum Incubation aims to impart training in the manufacturing as impart training in the manufacturing as well as services sectors for well as services sectors for employability and entrepreneurial skill employability and entrepreneurial skill development.development.

WHY INCUBATION

• Inadequately skilled labour force.Inadequately skilled labour force.

• Most of the job seekers without Most of the job seekers without any professional skills.any professional skills.

• Creation of new small businesses Creation of new small businesses for providing self-employment for providing self-employment opportunities to alleviate poverty.opportunities to alleviate poverty.

WHY INCUBATION

NSIC’s Model of Incubation

Innovative model Innovative model of Incubationof Incubation

• Employment generation Employment generation using flexible, cost effective using flexible, cost effective and replicable model.and replicable model.

• Optimal use of locally Optimal use of locally available resources.available resources.

• Integrated support by way of Integrated support by way of providing hands-on training providing hands-on training on working projectson working projects

• To boost the development of To boost the development of small enterprises small enterprises

Innovative Innovative model of model of

IncubationIncubation• Practical on-the-job Practical on-the-job

training on low cost training on low cost machines & equipments machines & equipments which are:-which are:-

– Easy to understandEasy to understand

– Easy to operateEasy to operate

– Easy to transferEasy to transfer

– Easy to maintainEasy to maintain

Activities Duration (week) 

1 Counseling  

1

2 Entrepreneurship Orientation  

2

3 Hands on Practical Training in Incubation Centres 

4

4 Market survey  

1

5 Project report preparation 

1

6 Approval and Registration with DIC  

1

7 Loan processing  

1

8 Monitoring and Follow up  

1

  Total  

12

Training Methodology

Persons (%)

1983 1993– 94 1999–2000 2004–05

Self-Employed 58.84 57.31 55.19 58.83

Regular Employees

17.14 16.35 17.52 18.13

Casual Labour 24.03 26.34 27.29 23.03

All 100.00 100.00 100.00 100.00

Estimated Numberof Workers (’000)

239488 313931 338194 384909

Percentage Distribution of Employed Persons by Category of Employment

As per published report of Planning Commission, Govt. of India

Population, Labour Force, Employment Projections

(’000)

Basis 1993–94* 2004–05* 2006–07 2011–12 2016–17

Population (age 0+) 893676 1092830 1128313 1207971 1283242

Population (age 15–59)

501760 652940 687120 760110 820570

Labour Force CDS 334197 419647 438948 483659 524057

Employment Opportunities

CDS 313931 384909 402238 460310 51820

Unemployed (’000) CDS 20266 34738 36710 23348 5853

Unemployment Rate (%)

CDS 6.06 8.28 8.36 4.83 1.12

As per published report of Planning Commission, Govt. of India

NSIC’s Model of Incubation through Public-Private-Partnership

Training to be provided by private Training to be provided by private service providers under PPP service providers under PPP mode. mode.

Demand driven training courses Demand driven training courses based on employable skills based on employable skills

Flexible delivery mechanism (Full Flexible delivery mechanism (Full time/ part time/ weekends)time/ part time/ weekends)

Public-Private-Partnership

• Approval of layout plan of NSIC-TICsApproval of layout plan of NSIC-TICs

• Facilitation for availability of credit/finance Facilitation for availability of credit/finance for setting up TICsfor setting up TICs

• Training of faculty for TICsTraining of faculty for TICs

• Training Modules & Contents provided by Training Modules & Contents provided by NSIC.NSIC.

• Publicity at National levelPublicity at National level

• Arrangement for sponsorships for training Arrangement for sponsorships for training programmes.programmes.

ROLE OF NSIC

• Help in access to credit by way of Help in access to credit by way of Tie-up arrangements.Tie-up arrangements.

• Help in sourcing of machinery & Help in sourcing of machinery & equipmentsequipments

• Monitoring operations of TICsMonitoring operations of TICs

• Issuance of completion certificatesIssuance of completion certificates

• Monitoring developments Monitoring developments continuouslycontinuously

ROLE OF NSIC

ROLE OF PRIVATE PARTNER

• Arrangement of :-Arrangement of :-

– Built-up Infrastructure for setting up Built-up Infrastructure for setting up TICsTICs

– Machinery & equipments.Machinery & equipments.– Faculty. Faculty. – Local publicityLocal publicity– Selection & Registration of trainees Selection & Registration of trainees – Operation of the TIC as per guidelines Operation of the TIC as per guidelines

approved by NSIC approved by NSIC

• Helping in preparation of project reports & Helping in preparation of project reports & loan proposals of traineesloan proposals of trainees

Suggestive Projects for TICsSuggestive Projects for TICs

Conventional TradesConventional Trades like, Plumbing, like, Plumbing, Electrician, Sheet metal works, Welding, Electrician, Sheet metal works, Welding, Fitter, Machinist, Turner, Draftsman, Fitter, Machinist, Turner, Draftsman, Diesel mechanic, Tools & die maker, Diesel mechanic, Tools & die maker, Motor vehicle Mechanic, Book binder, Motor vehicle Mechanic, Book binder, Carpenter, Candle making, Spray Carpenter, Candle making, Spray Painting etc.Painting etc.

Suggestive Projects for TICsSuggestive Projects for TICs

• Electronics Courses Electronics Courses like Mobile repairing, like Mobile repairing, Radio and TV repair, Repairing of electrical Radio and TV repair, Repairing of electrical gadgets, Repair of refrigerator & AC, Electrical gadgets, Repair of refrigerator & AC, Electrical appliances repairing etc.appliances repairing etc.

• Other Courses Other Courses like Beauty parlour, Soft toys like Beauty parlour, Soft toys making, Fashion designing, Embroidery & needle making, Fashion designing, Embroidery & needle work, Boutique, Health & fitness centre, Watch & work, Boutique, Health & fitness centre, Watch & clock mechanic, Cookery etc.clock mechanic, Cookery etc.

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Target GroupTarget Group : : Aspiring Entrepreneurs Aspiring Entrepreneurs Unemployed youthUnemployed youth

Unskilled manpower Unskilled manpower

QualificationQualification : : 1010thth standard(High School) standard(High School)

DurationDuration : : 3 Months3 Months

NSIC-TICs under PPP

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– Advertisement in print & electronic media

– General Enterprise Tendency (GET) test using psychometric tools

– Interview and selection.

Identification of Candidates

1919

Assistance in :Assistance in :

Preparation of project reportsPreparation of project reports

Filing of Memorandum for start up enterprises for Filing of Memorandum for start up enterprises for registrationregistration

Obtaining approvals from Government authorities Obtaining approvals from Government authorities such as pollution etc.such as pollution etc.

Credit facilitation through tie up with commercial Credit facilitation through tie up with commercial banksbanks

Other Incubation Support Services

2020

Assistance in:Assistance in:

Procurement of Machinery & equipments for selected Procurement of Machinery & equipments for selected projectproject

Installation & Commissioning of Machinery & Installation & Commissioning of Machinery & EquipmentEquipment

Sourcing of raw materials Sourcing of raw materials

Marketing support through Government supply, Marketing support through Government supply, participation in domestic as well as International participation in domestic as well as International Exhibitions.Exhibitions.

Contd…Contd…

Other Incubation Support Services

2121

• Loans given to start-up enterprises Loans given to start-up enterprises

are covered under the scheme of are covered under the scheme of

Credit Guarantee Fund Trust of Credit Guarantee Fund Trust of

Government of India upto INR 5 Government of India upto INR 5

million (apprx. US$ 120,000)million (apprx. US$ 120,000)

Collateral Free Credit

2222

• Nominal cost of training (non-residential) in Incubation is Nominal cost of training (non-residential) in Incubation is INR 5000 (approx. US$ 110 for a course of 3 months INR 5000 (approx. US$ 110 for a course of 3 months duration)duration)

• Training Programme to be self-sustaining in futureTraining Programme to be self-sustaining in future

• 15% of the total fee to be shared by NSIC and the 15% of the total fee to be shared by NSIC and the balance 85% to be retained by the private partner.balance 85% to be retained by the private partner.

• Wherever possible, training costs to be partly or fully Wherever possible, training costs to be partly or fully subsidised for candidates from under-privileged sections subsidised for candidates from under-privileged sections of society or women candidates.of society or women candidates.

Sharing Training Cost of Incubation

2323

• Each project capable of Each project capable of employing employing

-- 1 to 5 persons1 to 5 persons

• Average space requiredAverage space required -- 100 to 2000 sqr.ft.100 to 2000 sqr.ft.

• Average investment requiredAverage investment required -- US$ 1000 to US$ 1000 to 100,000100,000

• Average investment per Average investment per employmentemployment

-- US $ 2500US $ 2500

Other salient feaures of Projects selected for Other salient feaures of Projects selected for IncubatorsIncubators

2424

• Better employability & mobilityBetter employability & mobility

• Higher productivity, wages and less exploitationHigher productivity, wages and less exploitation

• Identity, improved social status & prideIdentity, improved social status & pride

• Easier to get loans for self-employment from Easier to get loans for self-employment from various Banks/Micro Finance Institutionsvarious Banks/Micro Finance Institutions

A. Unemployed

Benefits of Technology Incubators

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• Improved Quality & ProductivityImproved Quality & Productivity

• Less downtimeLess downtime

• Compliance with Quality Assurance systems like Compliance with Quality Assurance systems like ISOISO

• Availability of skilled workforce helps in getting Availability of skilled workforce helps in getting export ordersexport orders

B. Employers

Contd…

Benefits of Technology Incubators

2626

Some examples Some examples of Projectsof Projects

Light EngineeringLight Engineering

Barbed Wire MachineBarbed Wire Machine

Book Binding Book Binding

File FastenersFile Fasteners

M.S. Wire Drawing M.S. Wire Drawing

Paper Pins/Gem clips/Paper Pins/Gem clips/ Staple Pins manufactureStaple Pins manufacture Wood Screws & RivetsWood Screws & Rivets

Wire NailsWire Nails

Welded Wire MeshWelded Wire Mesh

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Agro & Food ProcessingAgro & Food Processing

BiscuitBiscuit

Bakery PlantBakery Plant

Corn FlakesCorn Flakes

ConfectioneryConfectionery

Food & vegetable dehydrationFood & vegetable dehydration

Flour Mill Flour Mill

Ginger Garlic Paste Ginger Garlic Paste

Making Making Ice Cream Cone Ice Cream Cone Jam/Jelly MakingJam/Jelly Making NoodlesNoodles

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Oil ExtractionOil Extraction

Potato/Banana Potato/Banana Wafers Wafers

Pop Corn MakingPop Corn Making

Rice MillingRice Milling

Soya MilkSoya Milk

Spice GrindingSpice Grinding Tomato Puree/PasteTomato Puree/Paste

Agro & Food Agro & Food ProcessingProcessing

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Pharmaceutical Pharmaceutical & Chemicals& Chemicals

Pharmaceuticals Pharmaceuticals TabletsTablets

Detergent Detergent PowderPowderWax CandleWax Candle

3030

Textiles and GarmentsTextiles and Garments

Elastic TapeElastic Tape

Socks Manufacturing Socks Manufacturing

Men Shirts Men Shirts

ShirtsShirts & Trousers & Trousers\\

Men Trousers Men Trousers

Track SuitsTrack Suits

Handkerchiefs & Under GarmentsHandkerchiefs & Under Garments

Pillow CoverPillow Cover

Cotton BagsCotton Bags

Luggage Hand BagsLuggage Hand Bags

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Leather & Footwear ProductsLeather & Footwear Products

Ladies PursesLadies Purses

Leather Hand BagsLeather Hand Bags

Leather BeltsLeather Belts

Gents PursesGents Purses Ladies SandalsLadies Sandals

Shoe upper stitching Shoe upper stitching

Industrial GlovesIndustrial Gloves

Leather GarmentsLeather Garments

Wrist Watch StrapsWrist Watch Straps

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Plastic & RubberPlastic & Rubber

Blow MoldingBlow Molding

Plastic Shopping BagsPlastic Shopping Bags

ThermoformingThermoforming

Paper & Paper ProductsPaper & Paper Products

Paper Napkin Paper Napkin

Paper Cups and Paper Cups and SaucersSaucers

Toilet RollsToilet Rolls

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ServicesServices

Mobile repairingMobile repairing

Beauty parlourBeauty parlour

Soft toys makingSoft toys making

Fashion designingFashion designing

EmbroideryEmbroidery

BoutiqueBoutique

Health & fitness Health & fitness centre centre

Incubating a Stronger, Wealthier and Inclusive India

Thank you