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Manu P. Toms

Mumbai, Aug. 14 The public private partnership (PPP) model for skill development in industrial training institutes (ITI) announced in the Union Budget turns into an opportunity for automobile manufacturers to fight the shortage of trained manpower.

Companies including Tata Motors, Mahindra, Eicher, Honda and Hyundai have already tied up with some of the ITIs near their manufacturing plants as they foresee a big demand-supply gap in skilled workforce in the backdrop of an estimated 16 per cent CAGR growth for the industry by 2016.

The industry body, Society of Indian Automobile Manufacturers (SIAM), has set a target of tying up with 100 ITIs in a year’s time as the Government’s Automotive Mission Plan (AMP) aims at creating additional 25 million jobs in the automotive sector by 2016. The original equipment manufacturers (OEMs) have already signed MoUs with at least 15 such institutes in different parts of the country.

In July alone, four MoUs were signed between automobile companies and various State Governments. General Motors and Eicher signed MoUs with the Gujarat Government to train students of Tarsali ITI in Vadodara and ITI Kuber Nagar, Ahmedabad respectively.

Mahindra & Mahindra signed MoUs to upgrade ITIs in Ghodegaon and Manikdoh. Mahindra plans to adopt more ITIs in view of its huge manpower requirement for its new large greenfield plant in Chakan.

“However, equally important will be the provision of skilled manpower for our suppliers. This initiative will certainly go a long way in assisting us, our suppliers and the industry in generating manpower with the required skill sets for its future needs,” said Mr Pawan Goenka, President (Automotive), Mahindra & Mahindra.

“This is a win-win model. We get trained manpower while the employability of the youth in the country is enhanced by the industry-academy collaboration,” said Mr Manoj Khattar, General Manager (Training), Honda Seil Cars India, who is a technical member of SIAM.

Honda tied up with an ITI in Bhiwadi near its upcoming plant in Rajasthan. “Ours is a manpower-oriented business and this is an effective way to fight scarcity in human resource,” he said.

Partnership between OEMs and ITIs involve training for the instructors within the plant on the latest technology, study visit of ITI instructors and trainees to the plants, support in the development of curriculum, books and literature, donation of automobile cut section models, equipment and visuals, on-the-job training for ITI students and placement opportunities.

Some companies including Tata Motors have been working closely with ITIs much before the implementation of the PPP model. “The company has decided to carry forward its earlier experience with ITI Pimpri-Chinchwad and Aundh in Pune to some more ITIs in the country. As of now, we have chosen to associate with ITIs, adjacent to our manufacturing locations in Jharkhand, Uttar Pradesh, Uttarakhand and West Bengal,” said the Tata Motors spokesperson.

Hyundai, which adopted an ITI Guwahati , is planning to adopt half a dozen ITIs including some in the vicinity of its Chennai plant, said the company spokesperson.

“If the growth of 16 per cent CAGR in turnover terms as set out in AMP 2016 is delivered, 25 million new jobs would be created. If the proportion between direct and indirect remains the same, 12.5 lakh new jobs would be created directly against the current 5 lakh employed,” said Mr Pawan Goenka of Mahindra.

More Stories on : Human Resources | Alliances & Joint Ventures | IT Training | Automobile Components

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