Skill Development

Capital Good Skill Council

In the near future ,India will be the largest individual contributor to the global demographic transition. A 2011 International Monetary Fund Working Paper found that substantial portion of the growth experienced by India since the 1980s is attributable to the country’s age structure and changing demographics. The U.S. Census Bureau predicts that India will surpass China as the world’s largest country by 2025, with a large proportion of those in the working age category. Over the next two decades the continuing demographic dividend in India could add about two percentage points per annum to India’s per capita GDP growth. As per Population Reference Bureau, India’s population in 2050 is projected to be 1.692 billion people. During the course of the demographic dividend, there are four mechanisms through which the benefits are delivered : The first is the increased labor supply . However, the magnitude of the benefit appears to be dependent on the ability of the economy to absorb and productively employ the extra workers rather than be a pure demographic gift. The second mechanism is the increase in savings. As the number dependents decreases individuals can save more. This increase in national savings rates increases the stock of capital in developing countries already facing shortages of capital and leads to higher productivity as the accumulated capital is invested. The third mechanism is human capital. Decreases in fertility rates in healthier women and fewer economic pressures at home. This also allows parents to invest more resources per child, leading to better health and educational outcomes. The fourth mechanism for growth is the increasing domestic demand brought about by the increasing GDP per capita and the decreasing dependency ratio. In line with this vision National Skill Development Corporation (NSDC) was established in 2008/09 under PM’s National Council on Skill Development with the primary mandate of enhancing, supplying and coordinating industry’s initiatives for development of skills required by them through setting up of Sector Specific Skill Councils.

Capital Goods Skill Council (CGSC) :

Capital Goods Council (CGSC) WAS formed in June ,2013 post NSDC APPROVAL IN October, 2012 as registered society. CGSC headed by Mr. K. Venkataramanan, Chairman is a joint initiative of FICCI and Dept. of Heavy Industries ,GOI. Mr. Inder S Gahlaut is the CEO of CGSC and lead member organizations are :

• L & T , Thermax , Bharat Forge, BHEL and Alstom.
• Process Plant & Machinery Association of India (PPMAI)
• Textile Machinery Manufactures Association ( TMMA)
• Indian Machine Tool Manufactures Association ( IMTMA)
• Tool & Gauge Manufacturers Association ( TAGMA India)
• Plastic Machinery Manufacturers Association (PMMA)

Objective :

To build a World Class Skill Council meeting diverse skill requirements of the Capital goods sector, enhancing employ- ability and opportunities, both locally and Globally.

Mission :

• Creating a pool of skilled manpower for Capital Goods
• Benchmarking new skills and up-skilling National Occupational Standards (NOS)
• Promoting inclusive growth through economic and social equity
• Improve productivity and sector competitiveness

Process : 4 Major action points constitute the Process :

A. National Occupational Standards ( NOS)/Skill Gap Analysis (SGA)/Labour Market Information System ( LMIS)

• Identification of critical skills with identification of areas for up-skilling, re-skilling and new skilling followed by undertaking skill gap analysis.
• LMIS to be designed based on above studies. LMIS to be put in place as a shared information from industry members.
• From beginning, benchmark with international standards for seamless integration of Indian and Global man-power skill-set.
• Formation of sub-committee to prepare NOS, SGA and LMIS with the assistance of a service provider/consultant.

B. Training partners/Trainers/assessors and Assessment Process :

• Development of certification process for master trainers, assessors and training institutes , as per international standards and complying fully with the National Standards.
• Assessment of technical skills to include both theory & trade terst. In addition, inputs on English language and soft skills also to be impaerted. Modules may be in various vernaculars.
• Map existing training infrastructure within the industry – both in Pricvate & Public Sector, in addition to Central Govt. & State Govt. infrastructure.Indentify a few institutions as Centrs of Excellence . avoid creation of new facilities.
• Indentify subject matter experts and master Trainers and assesors.
• Formation of subcommittee to prepare standards , with involvement of industry personnel.

C. Training & Certification :

• Industry recognition to Capital Goods Sector Skill (CSGC)
• Stream-wise skilling targets for up-skilling , re-skilling and new skilling.
• Define educational qualification of prospective trainees as per levels of skills.
• Identify different demographic base for different skill trainings.

D. Revenue Model/Marketing

• Robust revenue model and funding mechanisms to ensure sustainability of CGSC.
• Part –Funding by Beneficiaries i.e Industry members.
• Support from NSDC
• Create buzz about CGSC through strong marketing strategy