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 locally
available resources.
• Integrated support by way of
providing hands-on training
on working projects
• To boost the development of
small enterprises
 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 Duration (week)

 
1 Counseling 1
 
Entrepreneurship Orientation
2 2
 
3 Hands on Practical Training in 4
Incubation Centres
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
 
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 17.14 16.35 17.52 18.13
Employees
Casual Labour 24.03 26.34 27.29 23.03
All 100.00 100.00 100.00 100.00
Estimated 239488 313931 338194 384909
Number
of Workers
(’000)

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– 501760 652940 687120 760110 820570

59)
Labour Force CDS 334197 419647 438948 483659 524057
Employment CDS 313931 384909 402238 460310 51820
Opportunities
Unemployed (’000) CDS 20266 34738 36710 23348 5853
Unemployment CDS 6.06 8.28 8.36 4.83 1.12
Rate (%)

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 & Commissioning of Machinery & Equipment

 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

• Each project capable of - 1 to 5 persons

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

• Average investment required - US$ 1000 to

100,000
• Average investment per - US $ 2500
employment

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

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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

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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

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Leather & Footwear Products

 Ladies Purses

 Leather Hand Bags

 Leather Belts

 Gents Purses
 Ladies Sandals

 Shoe upper stitching

 Industrial Gloves

 Leather Garments

 Wrist Watch Straps

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Plastic & Rubber

 Blow Molding

 Plastic Shopping Bags

 Thermoforming

Paper & Paper Products

 Paper Napkin

 Paper Cups and Saucers

 Toilet Rolls

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Services

 Mobile repairing

 Beauty parlour

 Soft toys making

 Fashion designing

 Embroidery

 Boutique

 Health & fitness centre

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Incubating a Stronger, Wealthier and Inclusive India

Thank you