Tuesday, February 12, 2008

Quote

Most of the important things in the world have been
accomplished by people who have kept on trying when
there seemed to be no hope at all." -- Dale Carnegie

CII Skill Development Initiative in Southern Region

Skill development is the quintessential factor to maintain the current economic growth and if this is not addressed at the earliest it will have a debilitating effect on the Indian economy. Realizing this important aspect CII in Southern Region has formed a Taskforce on Skills, Employability and Affirmative Action. This task force is mandated with the mission to facilitate a multi-partnership approach for the development of skills in the southern Region. This approach envisages cooperation among Government, Policy makers, Industry, Researchers, Skill training providers and educators and development specialists.

Under this platform CII has evolved two major initiatives one with respect to the Soft Skill Training programme and the other a large Scale skill Development initiative called Grassroot Level Skill Development Initiative (GLSDI). GLSDI propounded by CII represents a key instrument in facilitating the social and economic integration of excluded groups and disadvantaged segments of the population like the rural unemployed youth and School drop outs.
Under the GLSDI programme CII has been working with MARG Constructions to train 5000 unemployed rural youth at the Special Economic Zone (SEZ) in Kanchepuram district in Tamil Nadu. CII has created a consortium of experts drawn from the Industry to monitor the project during the different phases. This is a paradigm model with both Forward and Backward Linkages with the NGO’s providing the backward linkage and the Industry the forward linkage. The project has met with huge success in terms of enhancing the livelihood options of these youth and also enhancing the skill sets which will enable the youth to join the segment of productive workforce in the country. CII is now trying to replicate the entire model in other states in the Southern Region.

CII is also rolling out a Soft Skills Training programme for the Post Graduate students under 61 colleges of the Madras University. CII has formed a consortium comprising of CII member companies and University of Madras to advise and oversee the implementation of the Soft skill training programme.

CII also has brought out a series of training modules like Manual on Soft Skills - Train the Trainers, an Introduction to the World of Work -Module for GLSDI - Instructor Manual and GLSDI Workbook.

Skill Development is a key strategy for the overall economic and social development of the country. It also gives an opportunity for both the Public and the private sector in India to join hands and to ensure that there in an inclusive economic development in the country and the development is sustainable and equitable. It is also important to note that the catalytic role played by CII for been an active facilitator in this process and thereby creating a platform for the stakeholders for sharing of information and expertise in the area of Skill Development. The road ahead for CII in the area of Skill Development is challenging but CII with its inherent strength of a vision and leadership will able to make a huge impact in improving the lives of Indians left untouched by the economic growth that the country is currently witnessing.

Friday, February 1, 2008

Suggested talking points for Mr. Gopal Srinivasan, Chairman, CII Tamil Nadu State Council and Director TVS Electronics

Respected Dr. A P J Abdul Kalam, Former President of India
Mr. T T Ashok, Chairman, CSR Sub Committee, CII (SR)
Mr. P K Mohapatra, Chairman, CII (SR)
Representatives from the Teaching Fraternity,
Respected Dignitaries,
Friends from the media and
My dear young friends,

It is my honor to be with you today to deliver the concluding remarks of the Imagine and Innovate Contest. We had a thought provoking and Insightful session with Dr. Kalam where he shared his views on the various developments in the country. I am taking this opportunity to highlight on some of the initiatives taken by CII to promote an Inclusive Economic Development in the country. The first one is creating an Innovation led Economic Growth and second one Skill Development Programme.

India is fast turning into an innovation led economy where innovations are leading to better growth and productivity. Young Innovations presented today is a gateway for the development of our country

Innovation is critical to our nation for many reasons. First and foremost, Innovation fuels sustainable economic expansion - creating high-wage jobs, world-class exports and productivity growth so critical to our long-term global competitiveness. Innovations also improve our quality of life. from new drugs and cures that help people live longer and healthier lives, to agricultural advances that permit more bountiful harvests with less herbicides and pesticides. Innovations are also vital in our efforts to protect our homeland by hardening our infrastructure, detecting dangers and empowering our defenders. Energy innovations are the key to meeting our future power needs while protecting our environment, and Innovation holds extraordinary promise for the future of education. By exporting our Innovative technology around the world we help improve the standard of living of the other 6 billion people on the planet.

CII is laying a strong emphasis on Skill Building and the thrust on this is being stressed through the theme ‘Building People: Building India’. We have created a movement to address the skill deficit. A project is being piloted in Tamil Nadu at a Special Economic Zone and this Skill Development Initiative has both the forward and the backward linkages for the employment of the rural youth. CII is planning to replicate the entire Skill development model in other states and scaling it up at the National level. CII is also concerned with the employability of University graduates and have tied up with the University of Madras to launch a soft skill training programme to train the college professors and lecturers on key aspects of soft skills. The curriculum for this soft skill training module has been developed by the CII led Industry consortium. CII aims to strengthen the Skill Development initiative in the country to develop a workforce that can compete at all levels at the global level.

This particular contest has created an enabling environment for young minds to showcase their innovative ideas. Forums of CII are an ideal platform for these ideas to be converted into products or solutions which will surely enhance the quality of life and also contribute to sustainable economic growth.

CII has been in the forefront as a catalyst to identify and scale up innovative ideas for the benefit of the Industry, the Society and the nation at large. Many of the projects presented today have Industrial significance and also social significance. The projects have shown local solutions are more sustainable in implementing resource management projects.
I take this opportunity to thank all the students who have actively participated in this event. I thank Dr. Kalam for taking time out of his busy schedule to be with us to present the awards and also to be with us sharing his perspectives on the different developmental challenges the country faces. His presence here has added immense value to the entire contest and we look forward to his valuable association in the near future.

Thank You
Suggested talking points for Mr. N Kumar. Past President, CII and Vice Chairman, The Sanmar Group during a confererence on Corporate Governance and CSR in Mumbai organised by US-India Business Council


Corporate Social Responsibility promotes a vision of business accountability to a wide range of stakeholders besides shareholders and investors. Corporate social Responsibility is the commitment of business to contribute to sustainable economic development working with employees, their families, the local community and society at large. It is an expression used to describe a company's obligation to be sensitive to the needs of all its stake holders in its business operations. .CSR is a part of the multi dimensional process which assumes that the community interests and stability is part of the long term business sustainability. Key areas of concern are environmental protection and the well being of employees, the community and civil society in general. Many Corporates are looking at CSR as a business strategy which can provide long term leverage over the competitors. For example some consumers have become increasingly sensitive to the CSR performance of the companies from which they buy their goods and services. And also some investors and investment fund managers have begun to take account of a corporation’s CSR policy in making investment decisions. As part of the CSR policy many companies are now encouraging their employees to volunteer and take part in community work. Ultimately such actions enhance the company’s reputation and strengthen the brand.
The role of business in Society has been debated in economic literature for a long time. The modern debate on the Social side of business gained momentum in 1953 with the publishing of the book Social Responsibilities of Businessman by Howard .R.Bowen. Bowen reasoned that there would be general Social and economic benefits that would accrue to Society, if business recognized broader social goals in its decisions.In India, many companies believe in CSR has an idea to give back something to the community and also to empower them so that they can lead a life devoid of poverty. Many firms especially from the Manufacturing and Services Industry have shown the way how Indian companies in their own way contribute their part in the nation building process. Many firms are looking at CSR as a strategy for the economic upliftment of the poor and the needy. Many believe the fruits of the Indian economic resurgence should be benefited by all and there is an opportunity which is to be tapped.
Tata Group was the front runner in taking care of the needs of the community. The stupendous economic growth seen in India poses a constraint on the resources and the effective way is to manage this is to work out a sustainable method where the environment is protected, the needs of the community is taken care off, employing the disabled and the school drop outs by enhancing their Skills, using Information and Communication Technology (ICT) to improve the standard of living of the community etc.
A strong case for the CSR activity is a company’s commitment to sound labor practices, environmental stewardship and good community relations plays an influential role in how it is perceived by the public. In a survey conducted in 20 developed countries, CSR related factors collectively accounted for 49% of company’s image compared with 35% for brand image and just 10% for financial management.

In India CSR has moved from the model of standalone projects to collaborations among public organizations, private firms, and civil society in addressing the developmental bottlenecks. These results-oriented interactions potentially improve the efficiency and effectiveness of the delivery mechanism by leveraging the expertise and technical excellence of the Indian Private sector. The concept of Public Private Partnership in Development projects is fastly gaining ground in India. CII have also been in the forefront of this unique partnership model.
Public sector organizations and Government Institutions in India are becoming increasingly reliant on collaboration with the private sector and civil society to strengthen innovative capacity and respond to the needs of the rural poor. New collaborative modalities include public-private partnerships, knowledge exchange networks, research consortia, technology joint ventures, public-private-non-governmental extension services and other partnership-based approaches.
Results have been encouraging and suggest that such collaborations are an important step in helping achieve the Millennium Development Goals, particularly the goals of eradicating extreme poverty and hunger and developing a global partnership for development.
The relation between CSR and Good Governance is closely related to the building up of economic competitiveness at the firm. Corporate Governance and CSR are two pillars which is the long run create a Sustainable and Ethical organization. Corporate Governance is a tool to add to the shareholder value while CSR adds value to the Stakeholders. The fundamentals of a strong organization is laid by sound Corporate Governance practices which invariably promotes fundamental values of Market economy and sustainable business practices which ultimately benefits the community. Institutions like CII have the task in hand to see corporate Governance becomes an Instrument for closer stakeholder engagement, greater transparency, equity and social responsibility. Sound Corporate Governance practices leads to Sustainable wealth.

Using these two strategies of CSR and Corporate Governance , the Private sector in India has a responsibility to create an enabling environment conducive for Inclusive growth by creating a high and a sustainable economic growth that would create employment opportunities and create an Inclusive society where the benefits of the economy growth reaches all section of the society.

Monday, December 10, 2007

Speech

Speech prepared for Mr. N Kumar, Vice-Chairman, Sanmar Group

Prof P Satyanarayanan, Vice- Chairman, SRM University

Mr. Pachamuthu, Chairman, SRM University

Mr Kathirvelu , Deputy Director, Employment and Training, Government of Tamil Nadu.

Respected Dignitaries, participants, media friends and Ladies and gentlemen

It a great moment for me to do the welcome address and the theme note for the Inaugural session of 20th CII Regional World Skills Competition. Skill Development is a topic dearer to my heart and I feel Skill Development as an imperative factor to maintain the competitiveness of the Indian Economy.

Realizing the importance of Skills in ensuring a sustainable and equitable growth, CII is working with the Central and the state governments on Skill Development to help release the latent entrepreneurial energies of the people in this country

Sustainability of India's growth story would critically depend on how the country addressed the shortages of skills and the need for skill enhancement and challenges in Skill Development were bigger and needed faster execution as the country was growing at a rapid pace. India needs to re-engineer its educational institutions and strengthen their infrastructure for effective Skill Development. Mapping of skill gaps, identifying training needs and investing wisely in Skills is an agenda for action for all the key stakeholders closely involved with the Skill Development initiative in the country. Developing the skills of the youth in the country also ensures the participation of people in the economic growth which will ultimately lead to inclusiveness in the growth.

This year the competition is being organized by the Confederation of Indian Industry (CII) in partnership with the Directorate General of Employment & Training, Ministry of Labour, Government of India. This year CII is organizing the competition with the objective to promote skill development programmes in the Industry and to Benchmark and scale up Indian Skills at the Global Level. The regional level competition will give an opportunity for the companies to compete at the regional level and also an opportunity to take part in the world skills competition in Canada in 2009. CII has been actively facilitating the skill development imitative in the country and this year CII took the lead in enrolling the country as a member of the World Skills International, the organizers of the world Skills competition. CII also took a delegation comprising of the Government officials and senior Industry leaders to Japan for this year’s World Skills competition. In Japan Indian companies participated in some of the trades and were able to showcase the Indian Skills to a Global Audience. In Japan India was able to develop strategic partnerships with selected corporate, government and non-government organisations to further understand and learn about the Global benchmarks in Skill Development. Over the coming years ,I feel India will be dominating the World Skills competition and will be able to standardise and benchmark Indian skills at these competitions.

CII has been actively working with the central and the state Government in rolling out long term Skill Development strategies. CII took upon itself the task of "Making India the Skills Capital of the World". CII conceived and launched the Skills Development Initiative in 2004, to become a catalyst in creating a skills movement in the country. The objective is to generate social inclusiveness and provide the socially and economically vulnerable population a chance to be part of the mainstream economy. Skills Development Initiative aims at harnessing India's 'Demographic Dividend' to make the people employable for employment/self employment in India or abroad. For tangible benefits, the training provided is necessarily benchmarked on international standards. CII views skills as a 'global currency'. CII has registered a Skills Development Trust with a Skills Development Fund and created an over arching CII Skills and Knowledge Mission to guide the functioning of the Skills Development Initiative.

I also take this opportunity to thank the host SRM University especially its Chairman, Mr. Pachumauthu and Prof P Satyanaryanan , the Vice chancellor for their proactiveness in partnering with CII in organizing the event. The staff and the Management of this amazing University were very forthcoming when CII first discussed about having the regional competition at SRM University. I should appreciate the leadership of the management for providing world Class infrastructure and serene and a peaceful environment which is a prerequisite for innovation, learning and knowledge transmission.

We have an eminent panel of judges to evaluate the candidates over a panel of 4 days and this competition I believe will help in showcasing the strength of the Indian Industry scaling new global benchmarks. I also take this opportunity to wish the competition a grand success and the participants the very best.

Thank you


Wednesday, December 5, 2007

EU-India Trade and Investment Development Programme

EU-India Trade and Investment Development programme was conceived in 2003 with the objective of fostering trade and investment between the European Union and India. The programme was started in India in 2006 and will be concluded by 2007 December 31st. Under the programme, Investment Facilitation Desks (IFD’s) have been established in Delhi, Mumbai, Kolkata and Chennai to serve as a one point contact for European business desiring to enter India and PricewaterhouseCoopers has been appointed as the consultant by the European Commission for the establishment of the IFD’s

The focus of the entire programme is to improve the economic environment in India and also to facilitate more trade and investment between the two regions. The programme have also a pivotal role in creating better employment opportunities and thereby addressing the core issue of poverty in India. The booming India’s economic Environment have thrown open the door of opportunities to the members of the European Union. With the India Global trade reaching a staggering US$ 305 billion in 2006, the share of the European Union members is abysmally low at US $ 47 billion. Among the European Union members the FDI Investments into India is concentrated among UK, France, Germany, Holland and Denmark. The programme also includes facilitating better FDI flows from the other members of the European Union apart from the members mentioned above.

The meeting in Bangalore was attended by the representatives of the European countries Trade offices, representatives of the Industry and trade consultants

Some of the issues of concern raised by the participants during the meeting are as follows

The investment climate is clouded with issues like infrastructure bottlenecks effecting the flow of investments into India

The STPI Concept has attracted many of the European firms to invest in India mainly in the Software sector.

There is no clarity on Special Economic Zones (SEZ’s )

Acquisition of land for industrial activities have become little problematic in certain states in India which can effect the flow of investment

The caps on FDI in India in certain high performing sectors like telecommunication, aviation etc can effect long term investments.

The desk has to facilitate more of investment into SME sector in India which has the potential to be the center of the investment spectrum.

Renewable Energy and carbon trading has been identified as one of the core sector which can drive the economic cooperation between India and the European Union

The Single Window clearance which facilitates investment is also clouded with delays.

The Education infrastructure in India has to be improved.

One of the statistics in the event showed that compared to 600 Danish companies operating in China only 70 companies are operating in India.

Skill shortages are seen in some sector which can derail the competitiveness.

The sectors identified for strengthening the Economic and Trade relations between India and European Union are
Textiles
Auto components
Pharmaceuticals
Biotechnology
It/ITES
Agriculture
Food Processing
Renewable Energy
Waste water Management

Monday, November 26, 2007

Sustainable Livelihood Enhancement: Laying the Foundation for an Inclusive Economic Development

With the liberalization of the economy, India has become one of the fastest growing nations in the world. The rapid economic growth has also had a significant impact on the social front. Social indicators have improved. Literacy levels have risen, while morbidity and mortality rates have declined. India has improved its rank one notch in the Human Development Index (HDI) value in the United Nations' Development Programme Report for 2006. However, it is widely felt that the rate of social development needs to escalate and economic growth needs to be backed by sustainable development. A number of efforts initiated by government and non government agencies on this front are working towards sustainable development of communities and the environment.

The 1992 the United Nations Conference on Environment and Development (UNCED) moved the concept towards an action agenda, especially in the context of Agenda 21, and advocated the achievement of sustainable livelihoods as a broad goal for poverty eradication focussed on the poor who live in marginalized areas. Agenda 21 stated that sustainable livelihoods could serve as an integrating factor that allows policies to address development, sustainable resource management and poverty eradication simultaneously.

After decades of India’s fight against poverty, new ideas about development are emerging .CII and several other institutions in India are revising their development strategies and placing greater emphasis on the elimination of poverty. One of the key strategies which have been unfolded is the Sustainable livelihoods enhancement programme.The Copenhagen World Summit for Social Development and the Fourth World Conference on Women (FWCW) at Beijing underscored the significance of linkages between sustainability, employment, social integration, gender and poverty eradication for policy and development programming

Sustainable Livelihood Enhancement approaches in India stems from concerns about the effectiveness of development activity. Despite stated commitments to poverty reduction, the immediate focus of much government and private effort has been on resources and facilities (water, land, clinics, infrastructure) or on structures that provide services (education ministries, livestock, services, NGOs), rather than people themselves. The new Sustainable Livelihood Enhancement approaches place people firmly at the centre; the benchmark for their success is whether sustainable improvements in people’s livelihood have taken place. It is believed that this approach at refocusing on the poor will make significant difference to the achievement of poverty reduction goals.

The Madhya Pradesh Rural Livelihoods Project (MPRLP) is a classic example of a Sustainable Livelihood Enhancement project in India. This project has brought together the Indian Government, Indian Private Sector, International Donor Agencies and the Community together. The project seeks to encourage the poverty-ridden rural families especially in tribal regions to lead a decisive fight against poverty. The voluntary participation of the poor in decision making process relating to rural livelihoods initiatives has made a desirable impact on rural scenario. The increasing confidence of the poor people to overcome poverty is being harnessed constructively to promote joint actions against long existing rural poverty. The MPRLP has adopted a bottom-up approach to poverty reduction. The MPRLP has unrolled village-specific livelihoods promotion plans with active cooperation and support from the institution of Gram Sabha or Village Assembly, which holds constitutional status.. Close partnerships with targeted rural communities through Gram Sabhas, the administration, management and need-based utilization of Gram Kosh or Village Fund by the Gram Sabha have developed a profound understanding among the rural poor about various dimensions of the rural poverty. Strengthening of Gram Sabhas on all aspects of development planning and management of resources goes on simultaneously. The Project has made well-contemplated attempts to inspire and guide community-driven micro enterprises.

The Private-Public Partnership being promoted by CII for development of backward districts, the initiative being piloted in Dungarpur, Rajasthan is another classic example of the Sustainable Enhancement of Livelihoods. The project calls for pooling of strengths and convergence of business initiatives, development programmes and science and technology inputs. The industry and institutional partners under this initiative are PI Industries, BAIF, PEDO/ Jain Irrigation/Grundfos Pump, RSSC, ITC, ICRISAT, Microsoft, District Education Department, GOR, ITI, Titagarh Bio-Tech Pvt. Ltd, DST & District Administration. Another important aspect of the project is the Development of ICT material for educating farmers on improved agricultural techniques for major crops of the district. The project is aiming for the Integrated Development of the District with a Strong Emphasis on Sustainable Livelihood Enhancement of the community.

Sustainable Livelihood Enhancement is a key strategy for the overall economic and social development of the people below the Poverty Line. It also gives an opportunity for both the Public and the private sector in India to join hands and to ensure that there in an inclusive economic development in the country and the development is sustainable and equitable.

Monday, November 19, 2007

India poised to Emerge as a Global Manufacturing Hub

India is poised to emerge as a global manufacturing hub for Earthmoving and Construction Equipments and a centre for design and R & D for ECE Industry. This was reverberated during the EXCON 2007 Conference on Opportunities and Challenges in the ECE Industry organized by the Confederation of Indian Industry (CII) in association with the Indian Earthmoving & Construction Industry Association Ltd (IECIAL).

In his address, Mr. S. R Subramanian, CEO, L&T-Komatsu Limited said that Indian companies with continuous focus on quality, low process engineering costs, higher asset utilization, low manpower costs and availability of raw materials are better positioned to emerge as a global manufacturing hub of earthmoving and construction equipments.

Highlighting the manufacturing capability of the Construction Equipment industry in India, he said that the major players in construction Equipment market in India have their own R & D centres. Indian companies are investing in R&D and developing technologies that are creating global benchmarks in the International market. He also spoke about the advantages of India as a manufacturing base for the ECE equipments.

Stressing on the emergence of Indian companies in this sector, Mr. Subramanian said that manufacturing in India follows a system process to meet global quality standards and is creating a change through a high performing culture and added that the world is looking at India as a preferred manufacturing destination rather than a market with attractive labour force.

Mr. S K Das, Executive Director, Bharat Earth Movers Limited said that Indian Manufacturing sector clocked decade highest growth rate of 14% in March 2007 because of the focus on best practices and innovation. Mr. Das further added that the Growth in the ECE is in the range of 25% to 30% for the past few years and it will be continue to be so in the coming decade.

Mr. Kevin Thieneman, Managing Director (Asia Pacific), Caterpillar, in his address spoke about the supply chain Management challenges and solutions and added that better supply chain management is the need of the hour in the Industry because supply chain strategy and design reduces cost and improves the service to the Customers. He also spoke about the Third Party Logistics (3PL) penetrating into the Indian markets.

Mr. Rajendra Khoda, Director – Sales (South Asia & The Middle East), Terex Pegson Ltd spoke about the technological developments in the Crushing and screening equipments. He emphasized the advantages of Tracked (Mobile) Plants such as easy mobility, no land acquisition cost, Low assembly cost, planning of the cost and budgeting.

Mr K. Kimura, Director, Telcon gave an insight about the technology trends in the world with respect to construction equipments and emphasized on the need for environmental friendly equipments. He quoted by an example of a product based on the concept of the Global e-service machines. These machines can be monitored and controlled through satellite and are GPS enabled. This technology helps in ascertaining the exact location of the equipment and thus results in easy and faster supply of raw material or providing the repair or maintenance at the earliest hence reducing the average completion cost and time.

Mr. Arjun Mirdha, Executive Vice President, JCB India Ltd spoke extensively on India being an export hub in manufacturing components and machines. He stressed on the fact that India would become the 3rd largest economy by 2050 and hence offered immense potential in the Infrastructure Development front.

In his opening remarks Mr. S. Raghavan, Executive Vice president, Machinery Sector, Larsen & Toubro Limited said, India is a market that has a huge potential for growth and it is also the right time for the companies to tap the opportunities.

Thursday, November 1, 2007

CII Skill conclave deliberates on the need for Skill Development


CII Skill Conclave deliberates on the need for skill development to sustain the Economic Growth

Skill development is the quintessential factor to maintain the current economic growth and if this is not addressed at the earliest it will have a debilitating effect on the Indian economy. This was reverberated at the Conclave on Building Skills: Building India organized by the Confederation of Indian Industry (CII) here today. Delivering the Inaugural address at the conclave Dr. J Geeta Reddy, Hon’ble Minister for Sugar, Industries & Commerce, Export Promotion, Government of Andhra Pradesh dwelt on the need for skill development to maintain the competitiveness of the Indian Economy and added that issue of skill shortage has received due diligence from the central and the state Governments. Addressing the criticality of Skills in India , Dr Reddy said that the Government cannot work independently and need to work with the Indian Industry to develop Industry vertical skills and this is utmost important to meet the need for skilled workforce across all sectors, she said.

In his special address, Mr. G Vinod, Hon’ble Minister for Labour, Employment, Factories and Boilers, Government of Andhra Pradesh said that the efficiency of an individual grows as he build skills and this in turn increases his productivity to perform the job. Mr. Vinod also added that the Government of Andhra Pradesh supports all such initiatives and offered all help from the Government in the area of Skill Development. In his Keynote address, Mr. Ashok Soota, Past President, CII and Chairman and Managing Director, Mindtree Consulting Pvt. Ltd. said that India is facing a difficult task of having strong economic fundamentals but with an environment where the rate of Unemployment is high compounded with the lack of availability of skilled people.

Mr. Soota said there is a perception in India that “only higher education leads to higher personal growth and employment” and this needs to be corrected. It is the knowledge of skills that is important to have higher personal growth and Employment and added that stakeholders need to decide their roles and responsibilities in skill development, the funding requirements and the funding mechanism. In his theme address, Mr. B Santhanam, Chairman, Taskforce on Skills, Employability and Affirmative Action, CII (SR) said that as the share of agriculture in the economy has reduced over the years, more and more people are moving into manufacturing and service sectors as the country develops and Skill building is needed for these people to build for a lucrative employment. Quoting a CII -IMacs Study, Mr. Santhanam said that there are large manpower requirements in several sectors in Andhra Pradesh and the state needs 7.5 to 8 million additional workforce by 2015.

Mr. T T Ashok Chairman, CSR Sub committee , CII (SR) delivered the welcome address and Mr. Pradeep Dhobale, Chairman, CII – Andhra Pradesh delivered the concluding remarks.

The conclave has brought the different stakeholders together to discuss in depth on topics like Strategic challenges and Policy Initiatives in Skill Development, the global scenario in Skill Development and the Employers involvement.

Coinciding with the conclave, Dr. J Geeta Reddy, Hon’ble Minister for Sugar, Industries & Commerce, Export Promotion, Government of Andhra Pradesh and Mr. G Vinod, Hon’ble Minister for Labour, Employment, Factories and Boilers, Government of Andhra Pradesh released the CII Study on Mapping of Human Resources and Skills in Andhra Pradesh -2015

Monday, October 29, 2007

CII releases Study on Mapping of Human Resources and Skills in

Confederation of Indian Industry today released a study on the Mapping of Human Resources and Skills in Andhra Pradesh to showcase the potential of the state to emerge as the leader in Skills. The study envisages that by 2015, Andhra Pradesh will have 7.5-8 million new (incremental) jobs to offer. The employment opportunities are likely to emanate mainly from the IT & ITES, textiles, engineering, construction, pharma and biotech, tourism, health care and financial services sectors. The break-up for such job opportunities in terms of skill level is about 4.5 million skilled and highly skilled professionals and 3 to 3.5 million unskilled human resources.

Considering “employability” of these resources, it is required to create educational infrastructure/support systems (mechanisms such as training programmes, vocational courses) capable of training 3.2 million students till 2015.The study further points out that new employment opportunities in the state would not only call for enhanced functional and to an extent sector-specific competencies across levels, but also several “soft” skills to address deficiencies viz Self Esteem, ability to relate with co-workers, time management skills and communication skills such as time management skills, communication skills and ability to relate with co-workers and work as a team.

The study reveals that out of the total engineering graduates and diploma holders passing out from AP every year, over 40% remain unemployed even after two years of pass-out. The primary reasons cited for the “unemployability” of students are disconnect between academic curricula and industry requirements resulting in deficiencies in specific functional skills besides lack of practical training, market orientation., “soft” skills of students and shortfall in appropriately trained faculty to impart soft skills and this is a concern assuming increasing proportions.

The study have set out recommendations to the Government of Andhra Pradesh and suggested the need to conceptualize and roll out a Sustenance Training and Employability Program (STEP) targeted at the large pool of minimally educated but skillable workforce. This has to be a large-scale skill-development initiative, covering around 0.3 million people annually and seeking to impart basic training to unskilled labour (primarily agricultural workforce) so that they can take up jobs in the organized sector. This initiative would cover areas such as workplace culture, safety habits & specific skill training and Advanced training program aimed at people already working in the industry with a view to upgrade their skill.

In order to address skill gaps of trained human resources, the CII Study suggested that the Government of Andhra Pradesh needs to formulate and implement a Employability based skill development initiative that would seek to develop the competencies of the State’s skilled human resources to meet industry requirements. This would focus on establishing industry based skill development centres to facilitate focused skill development, strengthening employment market information to provide labour market information to stakeholders. The objective is to bridge the information gap between the educational institutions and the employers in order to facilitate quick employment for Students.

Other initiatives are aimed at improving the course curriculum to make it more relevant to industry needs and at improving ITIs by introducing more industry / job oriented courses. Improving the effectiveness of IMCs in ITIs will help the state to develop a skill talent pool.

The study recommends the Government to establish a Skill Development Fund (SDF) to ensure adequate resource availability for the promotion of Skill Development Initiatives in the state. The annual funding requirements to support the initiatives outlined above would be of the order of Rs. 650 crore.

CII suggests that the State Government nominate a nodal agency to manage the disbursement of funds that would support the various training initiatives envisaged. The key roles of the nodal agency would include establishing guidelines for funding skill development initiatives, monitoring & tracking fund utilisation and assessing the effectiveness of the programmes.

In this study CII concludes that several measures as suggested needs to be implemented by the various stakeholders—State Government, educational institutions and industry—so that human resources requirements of the State of Andhra Pradesh are met. Once implemented CII believes these measures would contribute significantly to ensure that Andhra Pradesh realise its economic and industrial growth potential. ICRA Management Consulting Agency (IMACS ) was the Knowledge partner for CII in conducting the study.