Creating Self Employment
opportunities under PPP
NSIC’s model of
Incubation
A beginning…
Presented by: Pralay Dey, General Manager
NSIC, India
WHY INCUBATION
• Enterprise building is one of the critical
areas of development of any country.
This not only builds economy of the
country but also creates employment
opportunities.
• This can be achieved by way of
providing handholding support to the
first generation
entrepreneurs by
helping them to set up their own micro
& small enterprises.
• The Training cum Incubation aims to
impart training in the manufacturing as
well
as
services
sectors
for
employability and entrepreneurial skill
development.
WHY INCUBATION
• Inadequately skilled labour force.
• Most of the job seekers without
any professional skills.
• Creation of new small businesses
for providing self-employment
opportunities to alleviate poverty.
NSIC’s Model of Incubation
Innovative
model of
Incubation
•
Employment
generation
using flexible, cost effective
and replicable model.
•
Optimal use of
available resources.
•
Integrated support by way of
providing hands-on training
on working projects
•
To boost the development of
small enterprises
locally
Innovative
model of
Incubation
• Practical on-the-job
training on low cost
machines & equipments
which are:-
– Easy to understand
– Easy to operate
– Easy to transfer
– Easy to maintain
Training Methodology
Activities
1
2
3
Counseling
Entrepreneurship Orientation
Duration (week)
1
2
4
4
Hands on Practical Training in
Incubation Centres
Market survey
5
Project report preparation
1
6
Approval and Registration with DIC
1
7
Loan processing
1
8
Monitoring and Follow up
1
Total
12
1
Percentage Distribution of Employed Persons by Category of Employment
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
Number
of Workers
(’000)
239488
313931
338194
384909
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
Public-Private-Partnership
Training to be provided by private
service providers under PPP
mode.
Demand driven training courses
based on employable skills
Flexible delivery mechanism (Full
time/ part time/ weekends)
ROLE OF NSIC
• Approval of layout plan of NSIC-TICs
• Facilitation for availability of credit/finance
for setting up TICs
• Training of faculty for TICs
• Training Modules & Contents provided by
NSIC.
• Publicity at National level
• Arrangement for sponsorships for training
programmes.
ROLE OF NSIC
•
Help in access to credit by way of
Tie-up arrangements.
•
Help in sourcing of machinery &
equipments
•
Monitoring operations of TICs
•
Issuance of completion certificates
•
Monitoring developments
continuously
ROLE OF PRIVATE PARTNER
•
Arrangement of :–
–
–
–
–
–
•
Built-up Infrastructure for setting up
TICs
Machinery & equipments.
Faculty.
Local publicity
Selection & Registration of trainees
Operation of the TIC as per guidelines
approved by NSIC
Helping in preparation of project reports &
loan proposals of trainees
Suggestive Projects for TICs
Conventional Trades like, Plumbing,
Electrician, Sheet metal works, Welding,
Fitter, Machinist, Turner, Draftsman,
Diesel mechanic, Tools & die maker,
Motor vehicle Mechanic, Book binder,
Carpenter, Candle making, Spray Painting
etc.
Suggestive Projects for TICs
•
Electronics Courses like Mobile repairing,
Radio and TV repair, Repairing of electrical
gadgets, Repair of refrigerator & AC, Electrical
appliances repairing etc.
•
Other Courses like Beauty parlour, Soft toys
making, Fashion designing, Embroidery & needle
work, Boutique, Health & fitness centre, Watch &
clock mechanic, Cookery etc.
NSIC-TICs under PPP
Target Group :
Aspiring Entrepreneurs
Unemployed youth
Unskilled manpower
Qualification :
10th standard(High School)
Duration
3 Months
:
17
Identification of Candidates
– Advertisement in print & electronic
media
– General Enterprise Tendency (GET) test
using psychometric tools
– Interview and selection.
18
Other Incubation Support Services
Assistance in :
 Preparation of project reports
 Filing of Memorandum for start up enterprises for
registration
 Obtaining approvals from Government authorities
such as pollution etc.
 Credit facilitation through tie up with commercial
banks
19
Other Incubation Support Services
Contd…
Assistance in:
 Procurement of Machinery & equipments for selected
project
 Installation
Equipment
&
Commissioning
of
Machinery
&
 Sourcing of raw materials
 Marketing support through Government supply,
participation in domestic as well as International
Exhibitions.
20
Collateral Free Credit
• Loans given to start-up enterprises are covered
under the scheme of Credit Guarantee Fund
Trust of Government of India upto INR 5 million
(apprx. US$ 120,000)
21
Sharing Training Cost of Incubation
• Nominal cost of training (non-residential) in Incubation is
INR 5000 (approx. US$ 110 for a course of 3 months
duration)
• Training Programme to be self-sustaining in future
• 15% of the total fee to be shared by NSIC and the
balance 85% to be retained by the private partner.
• Wherever possible, training costs to be partly or fully
subsidised for candidates from under-privileged sections
of society or women candidates.
22
Other salient feaures of Projects selected for
Incubators
•
-
1 to 5 persons
•
Each project capable of
employing
Average space required
-
100 to 2000 sqr.ft.
•
Average investment required
-
US$ 1000 to
100,000
•
Average investment per
employment
-
US $ 2500
23
Benefits of Technology Incubators
A. Unemployed
• Better employability & mobility
• Higher productivity, wages and less exploitation
• Identity, improved social status & pride
• Easier to get loans for self-employment from
various Banks/Micro Finance Institutions
24
Benefits of Technology Incubators
Contd…
B. Employers
• Improved Quality & Productivity
• Less downtime
• Compliance with Quality Assurance systems like
ISO
• Availability of skilled workforce helps in getting
export orders
25
Some examples
of Projects
Light Engineering

Barbed Wire Machine

Book Binding

File Fasteners

M.S. Wire Drawing

Paper Pins/Gem clips/
Staple Pins manufacture
 Wood Screws & Rivets

Wire Nails

Welded Wire Mesh
26
Agro & Food Processing

Biscuit

Bakery Plant

Corn Flakes

Confectionery

Food & vegetable
dehydration





Flour Mill
Ginger Garlic Paste
Making
Ice Cream Cone
Jam/Jelly Making
Noodles
27
Agro & Food
Processing

Oil Extraction

Potato/Banana Wafers

Pop Corn Making

Rice Milling

Soya Milk


Spice Grinding
Tomato Puree/Paste
28
Pharmaceutical
& Chemicals
Pharmaceuticals
Tablets
Detergent
Powder
Wax Candle
29
Textiles and Garments
Elastic Tape
Socks Manufacturing
Men Shirts
Shirts & Trousers
\
Men Trousers
Track Suits
Handkerchiefs & Under Garments
Pillow Cover
Cotton Bags
Luggage Hand Bags
30
Leather & Footwear Products

Ladies Purses

Leather Hand Bags

Leather Belts


Gents Purses
Ladies Sandals

Shoe upper stitching

Industrial Gloves

Leather Garments

Wrist Watch Straps
31
Plastic & Rubber

Blow Molding

Plastic Shopping Bags

Thermoforming
Paper & Paper Products

Paper Napkin

Paper Cups and Saucers

Toilet Rolls
32
Services

Mobile repairing

Beauty parlour

Soft toys making

Fashion designing

Embroidery

Boutique

Health & fitness centre
33
Incubating a Stronger, Wealthier and Inclusive India
Thank you