Bhopal DPR

Draft
Draft Detailed
Detailed Project
Project Report
Report
New Technology Centre, Bhopal
(General Engineering)
New Technology Centre, Bhopal
(General Engineering)
Technology Centre Systems Program
(TCSP)
Technology Centre Systems Program
(TCSP)
Report No: 2016-Delhi-0283

July 2016
Submitted
To
The Office of Development Commissioner – MSME

Ministry of MSME, Govt. of India
Maulana Azad Road, New Delhi -110108
Technology Centre Systems Program – Draft DPR for New TC at Bhopal
27 August 2016
Director (Tool Room)
Office of Development Commissioner, MSME
Ministry of MSME
Nirman Bhawan, Maulana Azad Road,
New Delhi -110108
Dear Sir,
As part of our engagement to provide Consulting services for establishment of Program Management
Unit (PMU) for designing the project, undertaking the pre-project activities and providing
implementation support during the course of the Technology Centre Systems Program (TCSP), we
hereby submit the Draft Detailed Project Report for setting up of Technology Centre at Bhopal,
Madhya Pradesh for your kind perusal. The deliverable has been prepared in accordance with our
engagement agreement dated 07 November 2013, and our procedures were limited to those
described in that agreement.
This Detailed Project Report is based on inquiries of and discussions with:
► O/o DC MSME
► PSC
► Industry experts
► World Bank Mission
► Industries and Ancillary units
► Government Institutes and Industry association
► Secondary Research
We have not sought to confirm the accuracy of the data or the information and explanations provided
by the O/o DC MSME. Our work has been limited in scope and time and we stress that more detailed
procedures may reveal other issues not captured here. The procedures summarized in our Draft
Detailed Project Report do not constitute an audit, a review or other form of assurance in accordance
with any generally accepted auditing, review or other assurance standards, and accordingly we do
not express any form of assurance. This Draft Detailed Project Report is intended solely for the
information and use of the Office of DC-MSME and is not intended to be and should not be used by
anyone other than this specified party.
We appreciate the cooperation and assistance provided to us during the preparation of this report. If
you have any questions, please contact the undersigned.
Very truly yours,
Amar Shankar, Partner – Advisory Services
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Disclaimer
This Draft Detailed Project Report for development of technology center at Bhopal as part of
consulting services to establish a Program Management Unit (PMU) for designing the project,
undertaking the pre-project activities and providing implementation support during the course of the
Technology Centre Systems Program (TCSP) has been prepared by Ernst & Young LLP (hereinafter
referred to as ‘EY’ or ‘Ernst & Young’ or ‘Us’) and delivered to the ‘Office of Development
Commissioner - Ministry of Micro, Small & Medium Enterprise (O/o of DC-MSME)’ (hereinafter
referred to as ‘the Client’).
The inferences and analyses made by EY in this report are based on information collated through
primary research, secondary research, discussions with the client personnel and key stakeholders
and our knowledge about the program and its objectives. EY has taken due care to validate the
authenticity and correctness of the information from various sources, however, no representations
or warranty, expressed or implied, is given by EY or any of its respective partners, officers,
employees or agents as to the accuracy or completeness of the information, data or opinions
provided to EY by third parties or secondary sources.
Nothing contained herein, to the contrary and in no event shall EY be liable for any loss of profit or
revenues and any direct, incidental or consequential damages incurred by the Client or any other
user of this report.
In case the report is to be made available or disclosed to any third party, this disclaimer along with
all the limiting factors must be issued to the concerned party. The fact that EY assumes no liability
whatsoever, if for the reason any party is led to incur any loss for acting upon this report, must be
brought to the notice of the concerned party.
© EY, 2016
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Acknowledgement
We would like to express our sincere gratitude to MoMSME and its officials for their involvement and
valuable inputs during the preparation of this DPR. We extend a special thanks to
Shri S N Tripathi, IAS, (AS&DC-MSME) and Shri R.K. Rai (Director-TR, MoMSME) for their proactive
support and guidance during the entire process.
We would like to thank the GMs of existing MSME TCs for their guidance and valuable inputs during
preparation of the DPR.
We would like to convey our sincere thanks to officials of Industries Associations in Bhopal for their
support during the on-site visit for the proposed Technology Centre at Bhopal.
Also, we must extend our sincere thanks to all the stakeholders like large enterprises, OEMs, Tier I &
II suppliers, industry associations, Government Institutes and ancillary units who gave us their
valuable time and insights with respect to various dimensions of the tooling industry and its support
requirements. Without their help, capturing of the industry requirements would not have been
possible.
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Abbreviations
AICTE All India Council for Technical Education

CAD Computer-Aided Design
CAE Computer-Aided Engineering
CAM Computer-Aided Manufacturing
CDGI Centre for Development of Glass Industries
CFTI Central Footwear Training Institute
CIHT Central Institute of Hand Tools
CIPET Central Institute of Plastics Engineering and Technology
CITD Central Institute of Tool Design
CNC Computerized Numerical Control
CNM Cluster Network Manager
CRISP Central for Research and Industrial Staff Performance
CSIR Council Of Scientific And Industrial Research
CTR Commercial Tool Rooms
CTTC Central Tool Room & Training Centre
DC Development Commissioner
ESDM Electronics System Design And Manufacturing
ESTC Electronics Service & Training Centre
FFDC Fragrance & Flavour Development Centre
FRP Fibre Reinforced Plastic
GDP Gross Domestic Product
GIZ Gesellschaft für Internationale Zusammenarbeit
GoI Government of India
IDEMI Institute For Design of Electrical Measuring Instruments
IDTR Indo Danish Tool Room
IGTR Indo German Tool Room
IISc Indian Institute of Science
ITI Industrial Training Institute
ITSP IT Service Provider
KPI Key Performance Indicator
MOU Memorandum of Understanding
MSME Ministry of Micro, Small & Medium Enterprises
NCVT National Council for Vocational Training
OEM Original Equipment Manufacturer
PDO Program Development Objective
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PMC Project Management Consultant

PMU Program Management Unit
PPDC Process and Product Development Centre
RFD Result Framework Document
TAGMA Tool & Gauge Manufacturers Association of India
TCs Technology Centres
TCSP Technology Centres Systems Programme
TDC Technology Development Centre
TP Technology Partner
TR Tool Room
TRTC Tool Room & Training Centre
UNIDO United Nations Industrial Development Organization
VLSI Very Large Scale Integration
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Revision History
Version Issue date Amendment description Prepared by Reviewed by
Devesh
Dr. Milind Mujumdar
Gautam
1.1 First Draft DPR
Dinesh Pradhan
Utkarsh Joshi
1. Incorporated
changes as
discussed with
Second Draft Dr. Milind and Devesh
1.2 Dr. Milind Mujumdar
DPR Dinesh Pradhan Gautam
2. Revised area as
per the latest civil
design.
3. Incorporated
changes based on
the stakeholders
discussion held
Devesh
1.3 Third Draft DPR on 11th August Dr. Milind Mujumdar
Gautam
and subsequent
feedback from
Industry
associations
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Contents
Demographic overview and challenges ............................................................... 16

Recommendations of 12th plan working group & Parliamentary Standing Committee
17
Technology Centers System Program ................................................................ 19
Key TCSP stakeholders ..................................................................................... 20
RFD of TCSP .................................................................................................... 23
4.3.1 Government Bodies ......................................................................................... 45

4.3.2 Industry Associations ...................................................................................... 49
4.3.3 Key Manufacturers and Suppliers ..................................................................... 51
4.3.4 Financial Institutions ........................................................................................ 52
Primary Research ............................................................................................ 59

Challenges faced by MSME TRs ......................................................................... 61
Market in core sectors in the catchment ............................................................. 65

Market in other potential sectors in catchment area ............................................ 74
Market outside catchment area ......................................................................... 77
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15.1.1. Air emissions ................................................................................................. 190

15.1.2. Wastewater and liquid wastes ......................................................................... 191
15.1.3. Waste water management .............................................................................. 193
15.1.4. Solid waste management ................................................................................ 196
15.2.1. Monitoring ..................................................................................................... 198

15.2.2. Monitoring accidents and diseases monitoring .................................................. 199
15.3.1. Construction phase ........................................................................................ 200

15.3.2. Operation and maintenance ............................................................................ 205
15.3.3. Manufacturing ............................................................................................... 206
15.4.1. Fire alarm and firefighting system ................................................................... 209

15.4.2. Rain water harvesting..................................................................................... 212
15.4.3. Water treatment plant .................................................................................... 212
15.4.4. Sewage treatment plant ................................................................................. 213
15.4.5. Ventilation system ......................................................................................... 213
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List of Figures
Figure 1: TCSP eco-system .................................................................................................... 20

Figure 2: Location of existing TCs and New TCs ....................................................................... 26
Figure 3: Weightage assignment ............................................................................................. 37
Figure 4: Location of Bhopal .................................................................................................. 41
Figure 5: Growth of Population in Bhopal District ..................................................................... 44
Figure 6: Stakeholders of Bhopal TC ....................................................................................... 45
Figure 7: Size of the Tooling market in India ............................................................................ 56
Figure 8: Structure of Tooling Market ..................................................................................... 57
Figure 9: Composition of captive segment ............................................................................... 57
Figure 10: Composition of CTPs segment ................................................................................ 57
Figure 11: Composition of imports segment ............................................................................ 58
Figure 12: Absence of competitive advantage .......................................................................... 61
Figure 13: Technology centre catchment area ......................................................................... 64
Figure 14: Target Market Structure of Bhopal TC ..................................................................... 65
Figure 15: Core industrial District in the Catchment area .......................................................... 65
Figure 16: Plastic Park, Tamot ............................................................................................... 75
Figure 17: Food Processing Clusters in Madhya Pradesh ........................................................... 75
Figure 18: Defense Clusters in Madhya Pradesh ....................................................................... 76
Figure 19: Pharmaceutical Cluster in Madhya Pradesh .............................................................. 76
Figure 20: Market outside Catchment Area. ............................................................................. 77
Figure 21: Growth of District GDP of Bhopal ............................................................................ 80
Figure 22: Proposed organisation structure ......................................................................... 101
Figure 23: Suggestive framework for marketing of TC .......................................................... 122
Figure 24: Positioning of marketing mix for proposed TC ...................................................... 123
Figure 25: Support for other training institutions ................................................................... 142
Figure 26: Net working capital requirement ......................................................................... 181
Figure 28: Cash flow closing balance ................................................................................... 181
Figure 29: Net free Cash flows and Cumulative Cash flows ................................................... 187
List of Tables
Table 1: Result indicators of the RFD ...................................................................................... 24

Table 2: Existing TCs & TRs along with their specializations ....................................................... 25
Table 3: Tabulation of Bhopal District ...................................................................................... 42
Table 4: Tabulation of Madhya Pradesh ................................................................................... 42
Table 5: Status of Water, Electricity, Climate, Temperature in the Bhopal District ....................... 43
Table 6: Intake capacity at technical institutions in Madhya Pradesh .......................................... 53
Table 7: Composition of major manufacturing players in the Bhopal catchment .......................... 66
Table 8: Sector wise table spread of MSMEs in key catchment District ........................................ 68
Table 9: Catchment Area Profile ............................................................................................. 69
Table 10: Educational Institutions in the District (2010 – 2011) ................................................ 81
Table 11: Health Infrastructure in Bhopal District ..................................................................... 81
Table 12: Checklist for environmental screening ...................................................................... 84
Table 13: Sample monitoring and reporting template ............................................................... 91
Table 14: Clearances required and respective authorities ....................................................... 93
Table 15: Sanctioned strength of key resources ................................................................... 100
Table 16: Summary of phase wise induction of resources ..................................................... 103
Table 17: Department wise induction of fulltime resources ................................................... 104
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Table 18: Roles and responsibilities of proposed positions .................................................... 106

Table 19: Comparison of Society Registration Act and Companies Act .................................. 116
Table 20: Governing Council of Bhopal TC ............................................................................ 117
Table 21: Suggestive marketing activities, ownership and timeline ....................................... 125
Table 22: Details of specialization, courses, duration and capacity intake ............................. 129
Table 23: Proposed list of machines for training ................................................................... 133
Table 25: Proposed list of machines for production/ manufacturing activities ....................... 135
Table 26: Areas of consulting and estimated revenue ............................................................. 138
Table 27: Proposed areas of consulting ............................................................................... 140
Table 28: Estimated revenue from consulting ...................................................................... 140
Table 29: Indicative certifications of quality systems ........................................................... 152
Table 29: Details of proposed infrastructure ........................................................................ 156
Table 31: Details of proposed infrastructure for hostel and staff quarters ............................. 158
Table 32: Cost for development of campus infrastructures ................................................... 159
Table 33: Details of other infrastructure .............................................................................. 159
Table 34: Capital expenditure ............................................................................................. 163
Table 35: Plant & Machinery ............................................................................................... 163
Table 36: Building cost ....................................................................................................... 164
Table 37: variable cost assumptions ..................................................................................... 165
Table 38: Fixed Operating Cost assumptions ........................................................................ 166
Table 39: Manpower and salary assumptions ....................................................................... 167
Table 40: Key assumptions ................................................................................................. 171
Table 41: Production assumptions ....................................................................................... 171
Table 42: Training revenue assumptions .............................................................................. 173
Table 42: Consultancy revenue assumptions ........................................................................ 177
Table 43: Project cost and financing .................................................................................... 179
Table 45: Working capital schedule ...................................................................................... 182
Table 46: Cash flow statement ............................................................................................ 183
Table 47: Income and expenditure ....................................................................................... 184
Table 48: Balance sheet ...................................................................................................... 186
Table 49: Profitability with investment plant & machinery .................................................... 187
Table 50: Sensitivity of IRR ................................................................................................. 188
Table 51: Activities and anticipated EHS issues during construction phase............................ 200
Table 52: Potential hazards during O & M phase ................................................................... 205
Table 53: Potential hazards during manufacturing phase ...................................................... 206
Table 54: Risks & mitigation ................................................................................................ 216
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Executive
Summary
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Executive Summary
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Introduction
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Introduction
Background and project rationale
India is one of the largest and dynamic emerging markets with vast economic potential. India’s GDP
in 2012 was USD 1,872,000 Million ranking 10th amongst all countries1. The objective of the
Government of India’s, 12th Five-Year Plan (2012-2017) is to return to GDP growth rates in excess
of 8 percent, with strong emphasis on the manufacturing sector. Manufacturing has long been
recognized as an essential driver of economic development for most countries, as it has an important
economic and employment multiplier effect. The manufacturing sector will have to play an important
role to take Indian economy to a high growth rate trajectory and achieve the planned objectives.
MSMEs play an essential role in the overall industrial economy of the country and account for over
45% of India’s manufacturing output2.
Despite strong potential, India’s manufacturing performance has not been encouraging. The share of
manufacturing in India’s GDP has stagnated at around 16 percent 3, compared to more than 30
percent (and growing) in some of the other Asian countries. India’s manufacturing sector has been
facing challenges, such as low value addition, low productivity, and less-than-desirable up scaling.
However, world-class production units that compete in the international market are observed in the
automotive sector.
The major constraints in the growth and competitiveness of India’s manufacturing sector are:
► Difficulties in accessing markets (including within India),
► Difficulties in accessing finance (especially for MSMEs),
► Infrastructure deficiencies and
► Difficulties for MSMEs to access technology and lack of skilled manpower.
These constraints impact the competitiveness of MSMEs operating in both upstream and downstream
manufacturing industries.
Upstream industries, such as the tooling industry, which consists of developing and manufacturing
of dies, moulds, castings, as well as testing and prototyping, serves as an interface between product
design and product manufacturing. The right tools help increase throughputs, reduce material waste,
improve product quality, time to market and thus improve competitiveness. The importance of the
tooling industry increases with accelerating technological developments, product sophistication/
innovation/ customization and reducing time to market. Tooling is a specialized but local industry
1 http://unstats.un.org/unsd/snaama/dnltransfer.asp?fID=2
2 http://www.dnb.co.in/Nashik2013/PDF/MSMEsInIndia.pdf
3 The Manufacturing plan - Strategies for accelerating growth of manufacturing in India in the 12th Five Year
Plan and beyond
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(more than 60 percent of tools in the world are locally produced and consumed – including in India)
dominated by MSMEs (more than 80% of firms in India, Europe, US and Japan). As in other countries,
the private tooling industry in India has grown hand in hand with the manufacturing industry. The
turnover of the Indian tooling industry is approximately INR 13,000 crores, with more than a
thousand firms employing over 120,000 workers (TAGMA Report 2011) [Reference ??]. The
constraints to the growth and competitiveness of the Indian tooling industry mirror the ones affecting
manufacturing as a whole, as articulated above. The scarcity of skilled workers and problems related
to their retention, as well as the lack of access to a high-quality design and prototyping facility has
hurt growth.
In downstream industries such as automotive, electronics, fragrance and flavours, glass, leather,
toys etc., there is shortage of skilled labour and limited access to advanced technologies. These
industries include large numbers of MSMEs, often working as part of supplier networks of larger
enterprises and subject to increase international competition.
Demographic overview and challenges
While India stands to benefit from an immense demographic dividend (with the largest youth
population in the world; around 66 percent of the total population is under the age of 35), it has an
overall employment rate of 4.7 percent (under usual principal status approach) and an overall labour
force participation rate of 50.9 percent 4 . For the country to gain from this demographic dividend,
skilling and up-skilling its youth are key priorities for the Government of India (GoI).
India has a labour force of about 470 million, of which less than 10 percent has received skills
training, either through formal or informal means 5. About 13 million young people enter the labour
force annually. Despite the huge expansion of skills training provision during the 11th Five-year plan,
the country’s skills development system requires massive up scaling. In its 11 th and 12th Five-year
plans, India recognized that skill development is critical to achieve faster, sustainable and inclusive
growth on one hand, and to provide decent employment opportunities to the growing young
population, on the other hand. According to the National Skill Development Policy published in March
2009, India had set a target of skilling 500 million people by 2022 6. This program will play a bigger
role in the country’s plan by setting a target of skilling 150 lakh people within the next 6 years.
Global experience shows that a workforce with higher education and skill levels leads to higher
productivity and personal income. A 2011 study showed that students who attended three-year
vocational training courses at ITIs earned 25 percent more than two-year course students, who
4 Report on the Third-Annual employment & unemployment survey (2012 – 2013) of the Ministry of Labor,
Government of India.
5 11th and 12th Five Year Plan
6 http://labour.nic.in/upload/uploadfiles/files/Policies/NationalSkillDevelopmentPolicyMar09.pdf
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earned 14 percent more than did one-year course students7. These results were confirmed in a 2007
study showing that the returns on vocational training in India have been found to be 8 percent, almost
equivalent to the 8.4 percent related to an additional year of education. The same study showed that
increased educational attainment by one year is associated with 5.8 percent higher firm-level
productivity in India8.
Development of Indian manufacturing sector calls for deepening and recalibrating of economic
reforms that would strengthen the sector and make it grow faster and become an engine of inclusive
growth. To realize the potential of the manufacturing sector, Government of India had announced
National Manufacturing Policy in 2011 with the objective of enhancing the share of manufacturing in
GDP to 25% within a decade and creating 100 million jobs. It also seeks to empower rural youth by
imparting necessary skill sets to make them employable. Sustainable development is integral to the
spirit of the policy and technological value addition in manufacturing has received special focus.
The National Manufacturing Policy has six objectives:
► Improve manufacturing sector growth rate to 12-14% over the medium term to make it the
engine of growth for the economy. The 2 to 4 % differential over the medium term growth
rate of the overall economy will enable manufacturing to contribute at least 25% of the
National GDP by 2022.
► Increase the rate of job creation in manufacturing to create 100 million additional jobs by
2022.
► Creation of appropriate skill sets among the rural migrant and urban poor to make growth
inclusive.
► Increase domestic value addition and technological depth in manufacturing.
► Enhance global competitiveness of Indian manufacturing through appropriate policy support.
► Ensure sustainability of growth, particularly with regard to the environment including energy
efficiency, optimal utilization of natural resources and restoration of damaged/ degraded
eco-systems.
Recommendations of 12th plan working group & Parliamentary Standing
Committee
At present, the Office of Development Commissioner [O/o DC (MSME)], Ministry of Micro, Small and
Medium Enterprises, operates 10 TRs and 8 TDCs (both hereinafter called as TCs) spread across the
country. The TCs have been providing technical and vocational training programmes to more than
1, 00,000 trainees annually including AICTE and NCVT approved certification. They also provide
design and manufacturing support to entrepreneurs alongside technical consultancies. The TCs’
primary focus is to improve access to advanced technologies, provide technical advisory support to
7 Vocational Training in the Private Sector (Goyal 2011)

8 The Knowledge Economy and Education and Training in South Asia (World Bank 2007)
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entrepreneurs and workers, and offer opportunities for technical skill development to the youth at
varying levels. The variance in levels of training itself is demonstrative of a wide spectrum of technical
sophistication in training inputs.
Considering the performance of existing TCs, the Department related Parliamentary Standing
Committee on Industry, in its 235th report submitted to Rajya Sabha on 04th May 2012 have
recommended as follows:
i) “The committee is impressed with the performance of the TRs established by the MSME
Ministry. These enable the youth to improve their skills and get employment opportunities.
The success of such TRs inspires confidence that establishment of more such institutions will
equip the young people with necessary ability useful in the expanding market and
manufacturing sector”.
ii) “The Committee strongly recommends that more funds must be allocated for establishment
of TRs across the country. It is understood that MSME Ministry is also approaching the
concerned organizations within Government to get loan from International Financial
Institutions. If Planning Commission and Finance Ministry cannot allocate more funds for this
purpose, the necessary permission to MSME Ministry to get access to borrowings from
international banks may be given without delay. However, it is strongly recommended that
we must use our own resources for this cause, which is good for the youth of our country and
MSME sector”.
The evaluation of existing ten TRs was undertaken under GIZ–MSME Umbrella Programme during
2011. The experts have appreciated the performance of the existing TCs and have recommended
expansion of skill development activities and introduction of newer technologies in the TCs.
Hon’ble Finance Minister on 28th Feb 2013, in his budget speech 2013-14 has made following
announcement:
Para 75: “TRs and TDCs set up by the Ministry of MSME have done well in extending technology and
design support to small businesses. I propose to provide with World Bank assistance, a sum of
Rs.2200 crores during the 12th Five Year Plan period to set up 15 additional Centres”.
In pursuance of (i) the Finance Minister’s announcement through his Budget speech (2013-14), (ii)
the recommendations of the Department Related Parliamentary Standing Committee on Industry in
its 235th Report submitted to Parliament (Rajya Sabha) on 4th May 2012, and (iii) the
recommendations of the experts after evaluating the performance of existing TCs, it was proposed
to implement “Technology Centre Systems Programme (TCSP)” at an estimated project cost of
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Rs.2,200 crores including World Bank assistance of USD 200 million by setting up 15 new TCs and
to modernize / upgrade existing TCs by introducing latest machinery / technologies.
Technology Centers System Program
The Technology Center System Program, a national program, seeks to develop the technological and
skill base of MSMEs in selected manufacturing industries, via upgraded and new TCs (currently called
TRs and TDCs) has been envisaged. The TCs’ mission would be to improve the competitiveness of
MSMEs across India – with a strong emphasis on low income states.
This will be achieved by providing an integrated suite of services to MSMEs on a fee basis, ranging
from providing them access to technology, access to skills and access to business advisory services.
TCSP will reinforce the technical capability of the TCs as well as their performance, by further
increasing the participation of the private sector in key decisions at both the national and local levels.
The TCs shall support industry clusters across manufacturing value chains, both upstream (tooling
industry) and downstream (key industries exposed to global competition close to the technology
frontier, such as the automotive and electronics sectors, as well as industries evolving through
indigenous innovations, such as fragrance and flavour, glass, leather, toys etc.).
The PDO has been defined to enhance the competitiveness of MSMEs by improving their access to
technology and business advisory services as well as skilled workers through systems of financially
sustainable TCs. The program seeks to establish 15 new TCs and upgrade technological capabilities
of the existing TCs and develop linkages between MSMEs, Indian and international research institutes
and leading manufacturers. The program will connect leading practices that will contribute to
advance technology, knowledge, skilling and innovation that can be transferred to MSMEs served by
each TC.
The competitiveness of MSMEs is impacted by various factors such as entrepreneurial drive of the
leader, market and customer dynamics, their access to technology, finance & business advisory and
availability of skill manpower. The TCs will shape the outcomes of the program by providing MSMEs
access to technology, business advisory and skilled manpower. So it would be possible to measure
the success of this program by measuring the off-take of these paid services of the TCs by MSMEs.
Therefore, the key indicators that will be measured are;
► Number of enterprises paying for the services of the TCs.

► Number of long term trainees employed by industry, including MSMEs, within six months
after being trained at TCs.
► Profit of TCs before depreciation and land.
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In addition, intermediate result indicators are designed to monitor critical progress towards
achievement of the PDO with primary emphasis on market- Figure 1: TCSP eco-system
tested outputs of the TCs supported by TP and CNM. Examples
of such indicators include capacity utilization of machines;
trainees trained access to services by MSMEs, number of
technology strategies / roadmaps developed by TPs and
endorsed by industry associations and value of TCs' businesses
generated with support of CNMs.
This program will help MSMEs in key industries to become more

competitive by acquiring improved technology and employing
better skilled workers. This will be done directly through the
services provided to them by the TCs, as well as indirectly
through their linkages with larger firms (e.g. as part of the supplier network of an OEM), which will
have access to the services of the TCs under the condition that it benefits their suppliers. The TCs
will contribute by providing inputs to MSMEs on manufacturing technology & business advisory and
by improving the skills of workers/ skill seekers who can gain better employment opportunities. The
program will therefore benefit the Indian MSMEs, students and workers and help establish systems
of TCs in the country where each center will gain from the specialization and experience of the other
and improve the competiveness of MSMEs.
Key TCSP stakeholders
TCSP has multiple stakeholders who will need to work together to achieve the objective to enhance
the competitiveness of MSMEs by improving their access to technology and business advisory
services as well as skilled workers through systems of financially sustainable TCs. The key players
who will participate in the program include:
► Beneficiaries
MSME units will be the prime beneficiaries of the program and the overall objective of the program
centers around providing them with access to modern technology, business advisory services and
skilled workforce. Workers, job and skill seekers will also gain from this program with access to short
term and long term training/ skill development courses which will help them in improving their career
prospects and finding livelihood.
► Office of Development Commissioner, Ministry of MSME (DC-MoMSME)
The program would be designed and implemented under the aegis of the O/o Development
Commissioner MSME, Government of India.
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► Technology Centres
The TCs will act as the medium through which the services of the MSMEs - integrated suite of services
on a fee basis, ranging from providing them access to technology, access to skills and access to
business advisory services. The program will focus on upgraded select existing TCs and 15 new TCs
that support or will support industry clusters across manufacturing value chains, both upstream
(tooling industry) and downstream (key industries exposed to global competition close to technology
frontier, such as automotive electronics, as well as industries evolving through indigenous
innovations, such as fragrances and flavours, footwear, glassware, toys etc.).
► Industry associations, academia, applied research institutes and others
Strategic collaborations between TCs and various other organizations will be critical to foster
research and development, idea incubation and strengthen the TCs with regard to manufacturing
services, business advisory and training capabilities. These include:
 Regional / sectorial industry associations representing MSMEs.

 Regional / national level engineering/ academic / vocational training institutions.
 Applied research institutes.
 Local regional colleges.
 Autonomous institutes such as IISc, CSIR.
 Academia.
Leading practices from around the world for similar program suggest and underscore the importance
of establishing such linkages. In the Indian context, there are many research oriented projects and
concepts that can provide competitive advantage to Indian industry once the early state research
emanating from applied research institutes and academia can be validated and implemented at the
TC through such collaborations. The TCs will provide a unique environment of bringing the country’s
leading academics, engineering and industry professionals together to develop and demonstrate new
technologies on an industrial scale. This will allow the clients of TCs to develop new manufacturing
processes in a safe, neutral setting, reducing the associated financial risks.
► Program management unit (PMU)
The PMU will assist the O/o DC MSME in designing and implementing this program. This will include
developing framework for identifying sites/sectors for the new TCs, developing Detailed Project
Report (DPR), support in procurement of services and Environmental Protection and Compliance
(EPC) contracts; developing and implementing environment and social safeguards, monitoring and
evaluation, manage the roll out of the national portal, deployment of subject matter expertise and
overall program management for TCSP over 6 years. EY LLP has been appointed as the PMU for the
TCSP by the O/o DC MSME.
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► Technology partner (TP)
The TP will help enhance the supply side of the TC by augmenting the technologies at the TCs, assist
in their capacity building with respect to the identified technologies and clusters and provide greater
support to the services being offered to the MSMEs by the TCs. These services include being exposed
to the potential impact of new and relevant technologies, learning how to use new
technologies/equipment, providing access to cutting-edge equipment, developing and testing new
products, consultancy, training and deploying efficient techniques and practices that improve the
competitiveness of the MSMEs being served. M/s Steinbeis GmbH & Co. KG für Technologietransfer
has been selected as the TP for ESDM Sector under the TCSP by the O/o DC MSME via competitive
bidding as per World Bank guidelines.
► Cluster network manager (CNM)
The CNM will assist the TCs on the demand side by enhancing the economic development cooperation
of key stakeholders to improve cluster competitiveness. This includes strengthening the market
linkages of the TCs with the MSME cluster it serves, trade and industry associations, the academia,
educational institutions, business development service providers, other government support
institutions, workers and skill seekers.
► IT service provider (ITSP)
The IT Service provider will be responsible for designing, developing, setting up, operating and
maintaining the IT platform for MSMEs. The IT platform will act as a common platform for services
that will be required by an MSME from the start of their business, to successful operations and closure
e.g. access to regulatory services for entrepreneurs, assistance for financing, access to list of
suppliers etc. The platform will extend the reach of the program to its remote beneficiaries well
beyond the TCs’ physical location through access to e-learning solutions, B2B service and product
market place, e-recruitment, assistance for financial services and e-governance services (forum to
address grievances, automation of customer facing operations of the O/o DC MSME) on paid basis.
► National Portal Service Provider (NPSP)
Role of NPSP is to design, develop, set-up, operate and maintain the IT platform for MSMEs. The IT
platform will act as a common platform for services that will be required by an MSME from the start
of their business, to successful operations and closure e.g. access to regulatory services for
entrepreneurs, assistance for financing, access to list of suppliers etc. The platform intends to extend
the reach of the program to its remote beneficiaries well beyond the TCs’ physical location through
access to e-learning solutions, B2B service and product market place, e-recruitment, assistance for
financial services and e-governance services (forum to address grievances, automation of customer
facing operations of the O/o DC MSME) on paid basis.
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► Construction Management Consultant (CMC)
The Construction Management Consultant shall be responsible for design, supervision of work and
final closure of construction works for the TC. CMC will prepare concept plans and subproject
appraisal reports, carry out contract planning and detailed engineering designs, prepare schedules
of quantities and specifications. It will support the PMU in preparation of procurement packages, bid
documents, invitation, receipt and evaluation of bids etc. CMC will supervise the construction,
manage the contract, monitor construction activities and will certify contractor’s progress claims,
carry out quality control, testing, and prepare progress and monitoring reports, and certify bills. Tata
Consulting Engineers Ltd. has been selected as the CMC for the TCSP by the O/o DC MSME via
competitive bidding as per World Bank guidelines.
RFD of TCSP
TCSP’s objective is to enhance the competitiveness of MSMEs by improving their access to

technology, business advisory services as well as skilled workers through systems of financially
sustainable TCs. For monitoring the program outcomes, RFD has been defined; which contains the
results indicators at the PDO level and intermediate outcome level together with the baselines and
targets over the life of the program. Intermediate results indicators are designed to monitor critical
progress toward achievement of the PDO with primary emphasis on market-tested outputs of the TCs
and other stakeholders of the TCSP (viz. TPs, CNMs and ITP service provider).
Active participation of General Manager of TCs will be essential for steering the operationalization of
TCSP in line with the envisioned mandate. The key success parameters of the General Manager
include:
► Revenue earned by respective TC from,

 Production
 Training
 Consultancy and others
 Business given to private tool rooms
 Production/training/consultancy with the help of CNM (territory/sectors to be identified
Jointly by CNM and TCs in advance)
► Recovery ratio--Revenue/ recurring expenditure (cash) in percentage
► Profit before depreciation
► Profit after depreciation
► No. of trainees trained in Long term & Short term training programme
► No. of courses identified which are suitable for women employment & courses designed and
started (CNM to assist the identification of courses and TP to design)
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► No. of units assisted , out of which how many are MSMEs

► Present technical papers showing successes delivered and how it has aided industry
► Technical incubation centre to be started and the long term trainees to be encouraged to
register for starting enterprises
The table below depicts the snapshot of result indicators which form a part of the RFD.
Table 1: Result indicators of the RFD
Number of enterprises paying for the services of TCs
Program development objective Number of long term trainees employed by industry,

indicators including MSMEs, six months after graduating from the
TCs
TCs' gross profit before depreciation (not including

land)
Intermediary Results
Revenue of TCs from access to technology activities

(production support and consultancy)
Access to Capacity utilization of machines in TCs

technology
No. of technology strategies/roadmaps developed by TPs and

endorsed by industry associations and IC
Number of trainees trained (direct program beneficiary)

Component 1-
Technical Access to
assistance to skilled Number of skills development contents (e.g. curricula,
workforce standards, certifications) developed and adopted by
the existing
and new TCs industry associations, and/or certifying agencies
Number of needs assessment and business plans

developed by CNMs and endorsed by Industry Assocs.
Access to
business Value of TCs' businesses generated with support of
advisory Cluster Network Managers
Number of users of IT Platform
Component 2-Investments to
upgrade existing and develop Number of new TCs built
new TCs
The program will have direct and indirect industrial and economic outcomes to the country, such as
enhanced manufacturing competitiveness, improvement in the overall employment rate and
increased GDP growth.
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Existing MSME TCs and feedback on other TRs
Out of the currently operational eighteen TCs & TRs, ten are for the tooling industry and eight are
for other industries such as ESDM (electronics system design and manufacturing), glass, footwear,
and fragrance and flavour industries etc. Half of these eighteen TCs are located in low income states
(Uttar Pradesh, Madhya Pradesh, Odisha, Jharkhand and Assam). The TCs are self-sufficient
institutions that provide training, manufacturing and consulting services to MSMEs and OEMs. They
have created a niche in the market in various fields such as hand tools, plastics, automotive, lean
production etc.
The list of the existing TCs & TRs along with their specializations is given below:
Table 2: Existing TCs & TRs along with their specializations
S. No. Name Specialization

1 Central Tool Room & Training Centre (CTTC), Tooling, precision manufacturing and
Bhubaneswar (Odisha) training
2 Indo Danish Tool Room (IDTR), Jamshedpur Tooling (specialization in automotive)
(Jharkhand) & training
3 Central Tool Room & Training Centre (CTTC), Tooling & training
Kolkata (West Bengal)
4 Tool Room & Training Centre (TRTC), Tooling & training
Guwahati (Assam)
5 Indo German Tool Room (IGTR), Aurangabad Tooling (specialization in automotive)
(Maharashtra) & training
6 Indo German Tool Room (IGTR), Indore Tooling (specialization in automotive
(Madhya Pradesh) and plastics, contributing to medical)
& training
7 Indo German Tool Room (IGTR), Ahmedabad Tooling (specialization in plastics,
(Gujarat) contributing to automotive) & Training
8 Central Tool Room (CTR), Ludhiana (Punjab) Tooling & training
9 Central Institute of Hand Tools (CIHT), Tooling (specialization in hand tools)

Jalandhar (Punjab)
10 Central Institute of Tool Design (CITD), Tooling & training
Hyderabad, (Andhra Pradesh)
11 Institute for Design of Electrical Measuring ESDM, tooling and training
Instruments (IDEMI), Mumbai, (Maharashtra)
12 Electronics Service & Training Centre (ESTC), ESDM and training
Jamnagar (Uttarakhand)
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S. No. Name Specialization

13 Process and Product Development Centre Foundry & forging and training
(PPDC), Agra (Uttar Pradesh)
14 Process cum Product Development Centre Sports goods and training
(PPDC), Meerut (Uttar Pradesh)
15 Central Footwear Training Institute (CFTI), Leather footwear & training
Agra (Uttar Pradesh)
16 Central Footwear Training Institute (CFTI), Leather footwear & training
Chennai (Tamil Nadu)
17 Fragrance & Flavour Development Centre Fragrance & flavours and training
(FFDC), Kanauji (Uttar Pradesh)
18 Centre for Development of Glass Industries Glass and training
(CDGI), Firozabad (Uttar Pradesh)
Figure 2: Location of existing TCs and New TCs
Several of these were set up through support from German and Danish Governments and under
bilateral agreements with the UNIDO. These TCs are largely self-sustaining entities that have been
providing technical and vocational training programs to more than 1, 00,000 trainees annually. Some
of these include certificate training programs certified by the AICTE and NCVT. They also provide
design and manufacturing support to entrepreneurs alongside technical consultancies.
The existing TC’s, were set up between 1967 and 1999, with primarily focus on improving access to
technologies and providing technical advisory support for entrepreneurs in the given industry cluster
they serve. These TCs also serve workers and youth by offering opportunities for hands-on technical
training and skill development in varied trades with a view to improve employability and livelihood
opportunities.
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The key services offered by the TCs mainly include:
a) Design & manufacturing

► Design & Manufacturing of Tools, dies, moulds and precision tools,
► Process Development,
► Product Development.
b) Skill development
► Long & short term training programs,
► Areas include Too and die making, Computer Aided Design (CAD), Computer Aided
Machining (CAM), CNC (Computer Numerical Control.) ,Robotics and machine shop
automation, Rapid Prototyping (RPT), mechatronics, welding etc.,
► International, modular and customized programs,
► Varies from school drop outs, SSC / HSC / pass outs, ITI pass outs, diploma holders and
graduate engineers.
c) Consultancy
► Inspection & calibration facilities,
► Turn-key assignments,
► Course curriculum developments for ITIs and other institutions
Over the last few years, financial performance of the TCs has markedly improved. Most of them have
experienced strong revenue growth (mostly due to training activities) and have achieved financial
sustainability (before depreciation and land costs).
Some of the preliminary findings from the analysis show:
a) High profitability in recent years: There has been an improvement in recovery ratio of these
TCs, thus allowing them to progress towards their self-sustainability mandate. Each of these
8 MSME TRs has become profitable in the last two years. From our discussions, we
understand that IGTR Indore and CTR Ludhiana were not profitable in recent years; however,
these centres have also corrected their recovery rates in 2012-13. In addition to these
institutes, some of the other institutes are yet to reach the recovery ratio of 100%.
b) Skewed / Tilted towards training: Training and skill developed services have been a key
revenue sources for the TCs. The scope of manufacturing needs to be up-scaled to achieve a
balance in operations and revenues from each TC. Ideally, revenues should be balanced
between the two main sources of income for the TCs. Only IGTR Aurangabad is found to be
closely balanced. CITD Hyderabad and CTTC Kolkata, although profitable, need to perhaps
enhance their production activities.
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c) Focus of production activities is more towards job work or component production: It was
found that the utilisation of machines in the production area was focused on component
production and facilities for designing, die casting or tooling were not being fully utilized.
CTTC Bhubaneswar and IDTR Jamshedpur focus on component production while CTR
Ludhiana on job work and IGTR Indore and CTTC Kolkata on jigs and fixtures. Only IGTR
Aurangabad and CITD Hyderabad were found to focus on specialization in production,
including designing, such as die casting and sheet metal or press tooling.
d) Training capacity is well utilized: As reflected in the sources of revenue generation, the scale
of training activities has been growing. All TCs initially reviewed, demonstrated an increase
in training numbers from 2013-14 to 2014-15. The highest increase was observed at PPDC
Agra while the least was observed in CITD Hyderabad. The staff at these TCs needs to focus
on production and maintain a balance between these two activities, while also up scaling
other activities like consultancy and product testing. The centres should also seek avenues
for taking advantage of government sponsored schemes and subsequently train more
technicians in welding, machining and in automation.
Evaluation study of TCs and recommendations of the experts
A study of selected MSME TRs in India on ‘Strategic Assessment and Recommendations’ has been
submitted under the ‘Micro, Small and Medium Enterprises Umbrella Programme’. The purpose of the
study was to make comparison of the TRs with international TR programmes. An integrated set of
ten recommendations have been made to increase the impact of the TR programme ‐ reducing
constraints to manufacturing MSME growth which are as follows:
► Scale up training to meet market demand - TCs should contribute trainees in greater numbers.
The gap in the supply of advanced manufacturing skills will systematically reduce.
► Support private tooling sector to mature to excellence - Besides 10 government TRs, hundreds
of private TRs contribute to increased manufacturing MSME competitiveness by providing more
complex tools at lower prices.
► Speed up absorption of advanced manufacturing technology - Increased numbers of MSMEs
will be able to access advanced technologies which enables them to secure larger contracts at
better margins.
► Engage in strategic partnerships - Partnerships with large manufacturers can help realise large
scale opportunities for manufacturing MSME. TCs can benefit from large scale and long lasting
demand for services and increased revenue.
► Systematically build and leverage networks of capacities - The TCs should build a network of
collaborating stakeholders to support the TCs to unlock more opportunities. Sub‐contractors
can enable TRs to expand the scale and scope of their services.
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► Re‐organise “business model” of government TRs- the TCs should function as autonomous
business units with increased powers and accountability, increase job enrichment and control
over own wellbeing. These teams are likely to become more motivated, innovative, leaner and
more responsive to customers.
► Map out the TRs role in the local innovation system - TCs can benefit from integration with the
local innovation system. Increased opportunity will result from increased stakeholder awareness
and support.
► Move away from hierarchy to network governance - TCs will benefit from more autonomy which
enables them to respond better to opportunities.
► Establish a strategic framework - TCs should utilise a coherent strategic framework which
clearly articulates programme goals, sound economic development principles and good
practices. Revised KPIs should promote sound strategy that result in greater, sustained
development impact.
► Establish a strategic facilitation capacity - TCs should learn faster to achieve greater
development impact. TCs should be at an international level of competitiveness.
During our discussion with TCs, it was conveyed that several studies have been undertaken by O/o
DC MSME to analyse the technology capabilities and governance framework established at the
existing TCs. The key findings from these studies are summarized as follows;
A study was undertaken to analyse the technology, organization and training at select MSME TRs,
including CTTC Bhubaneswar in November 2012. The key findings of the analysis for CTTC
Bhubaneswar are as follows:
► Technology
 The average milling machine age is a higher compared to the reference groups,
 Multiple machine work is not accomplished limiting the potentials in productivity,
 The number of unproductive machines is significantly lower compared to other MSME TRs,
 The share of set-up times is conspicuously low and is therefore subject to review,
 The technology relevance distribution is different to other TCs, as the turning technology
is an important technology for the component production,
 The grinding technology shows potential for higher performance particularly with regard of
high precision machining for aeronautical components,
► The technology analysis shows machinery characterized by a high machine performance
Organization
 Towards the customer this is compensated by a large portion of products being delivered
early, – 4 out of 5 orders will reach the customer on time,
 Late orders occur infrequently and are in line with the international competitive standard,
 The experience, process quality, and customer focus is also represented by high customer
satisfaction,
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 High manpower in the quality management department ensures the high quality of the
products,
 Quality assurance is also exercised by the departments individually to operate with process
orientation,
 The customer group can be considered focused by the standard of the other MSME TCs,
 A short average job tenure is an indicator for future sustainability and a stable process
structure,
 CTTC Bhubaneswar successfully exploits the benefits of customer focus and product
portfolio – The next step has to be undertaken by adding an electronic planning and control
system
► Training
 The development of further courses on automation and systems should be continued,
 Even though an advanced process understanding is existent in manufacturing it is not
sufficiently transferred to training,
 The analysed courses comprehensively attend to the necessary key know-how of machine
operators, programmers, and designers in the mid-term format.
The key recommendations made in the report were as follows:
► Technology
 Holding the high machinery performance level with the help of machine investments – large
size milling machines and grinding machines,
 Rationalization and standardization of all manufacturing processes,
 Reduction of in-machine set-up times using zero-point clamping systems and pallets,
 Efficiency improvements by reduction of electrode milling and sink-EDM machining time by
shifting to graphite electrodes.
► Organization
 Definition of requirements to improve planning and control of the order fulfilment process
by developing an electronic planning and control system.
► Training
 Development of a link between manufacturing competencies and course offerings by
setting-up of course offerings addressing organizational capabilities and component
manufacturing,
 Establishment of modular course structure for advanced training of industry professionals.
All of the above recommendations are valuable not only for the improvement of the existing
TCs but also it serves as an important input for conceptualizing and planning for the new TCs.
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DPR Objective and

Approach
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DPR objective and approach
Objective
Technology Centre in Bhopal has been proposed with the underlying fact and review of the catchment
area which has multiple industrial areas and also has some of the leading units of automobile, general
engineering like fastener manufacturing, metal fabrication units auto ancillary units etc. Further the
TC can facilitate and support the MSME units coming up across this region. The TC at Bhopal will play
an important role in enhancing the competitiveness of the MSME units in the area. TC will focus on
providing skill up-gradation, improving access to technology, and offering advocacy support to the
MSMEs with high growth potential. The long term vision is to ensure competitiveness of the MSMEs
in the eco-system by strengthening their linkages to the mainstream manufacturing sector in the
region.
The objective of this DPR is to evaluate feasibility of proposed MoMSME TC at Bhopal. This include
the assessment of the market needs in the region, technology and skillset requirement, amount of
investment required, construction needed, its layout subsequent requirements for implementation
of the greenfield TC at Bhopal. This DPR is prepared in the consultation with relevant stakeholders
including O/o DC MSME, Government of Madhya Pradesh, Directorate of industries in Madhya
Pradesh, World Bank, OEMs, Tier I and Tier II suppliers, Industry Associations, Government Institutes
and some ancillary units in the region. This DPR would facilitate the implementation plan of proposed
TC at Bhopal. Also, a workshop at Bhopal was organised on 4th May 2016, which was chaired by PS
Industries, Government of Madhya Pradesh and in the workshop representatives from various
industry associations, industries, MSMEs participated. Their suggestions and views were also taken
into consideration during the preparation of DPR.
Approach
To start with, a comprehensive secondary research was carried out to understand the tooling and
technological requirements of the General Engineering Sector and in particular of the Bhopal region.
To validate the facts, the team conducted a detailed primary research that included meetings with
various key stakeholders including O/o DC-MSME, Industrial Associations and General Engineering
units in the catchment and others as explained below.
Discussions with various stakeholders were carried out to develop better understanding of the
requirements and expectations from the proposed TC. Leading players were met in this region to
discuss and understand the various insights with respect to the tooling, General Engineering & other
technological requirements during the preparation of the DPR. Telephonic discussions with some of
the General Engineering component manufacturers and suppliers across various regions were carried
out. The objective of this primary research was to understand their business requirements, issues,
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challenges, and future requirements to develop a deeper understanding of the requirements that can
be served by the TCSP in future.
Based on the outcomes and the results of the discussions, market opportunity assessment was
undertaken to understand the tooling & technology demand in General engineering sector across
various stages of manufacturing.
Way forward: Post completion of the DPR for the proposed TC at Bhopal under TCSP, the on-boarding
of 3 main partners would be very much required to achieve the envisaged outcome in the defined
time frame.
► Construction Management Consultant - For the development of the new facility, Tata
Consulting Engineering Ltd. has been selected as the CMC for the TCSP.
► Technology Partner – Procurement of machines and adoption of new technologies
► Cluster Network Manager – Marketing the centre and development of cluster with the right
mix of products and services.
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Location/Cluster/
Industry Selection
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Framework for Selection of Industry/ Clusters/ Systems/

Location for New TCs
Location selection framework
With the objective of establishing 15 new TC’s to support industry clusters, there was a need to
prioritize and identify high potential growth industries based upon certain selected parameters.
Hence, one of the most challenging and critical aspect of the TCSP was selection of the
Industry/Clusters/Systems/Locations. This required careful consideration of parameters and
consultation with the stakeholders. Preliminary meetings with the O/o DC-MSME were held to discuss
the concept and approach. Subsequently three distinct approaches were finalised to identify the
locations:
a) Manufacturing Competitiveness approach: Key idea for this approach was to identify location
for TC at a place where it can create the most impact on improving the manufacturing
competitiveness. The steps involved were:
► Listing major manufacturing industries creating value across country

► Identifying the clusters which can be catalyst to the manufacturing competitiveness for
respective industry
One key limitation of this approach is that it will select the clusters which are already established and
are among the most competitive across the country. A TC at such location will further improve the
competitiveness of this location.
b) Inclusive Growth approach: Approach is based on the assumption that the state which has higher
Net State Domestic Product has significant growth and hence the states with lower per capita
state domestic product should be supported. A TC in such states would become a catalyst to
improve the manufacturing growth in the state. Following steps were followed:
► Identification of bottom 15 Low Income states on the basis of per capita Net State Domestic
Product9
► Identification of major manufacturing Industries in the selected states
► Identification of the major clusters for the identified major industries in the state
One of the key drawbacks of this approach is that clusters identified will not be the most competitive
for the industry in the country. It is possible that by investing in a TC at such a location might improve
the competitiveness of that cluster but this may not lead a world class centre TC.
9
2011-12 Current prices
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c) Alignment of Major Economic Projects: Since a TC will create value for many years10 and there
are some mega projects in progress which will be completed in the next 10-15 years. This
approach aims to incorporate the possible future growth areas on the basis of these mega
projects. Considering that such economic growth is based on future development, these areas
may not get covered in the above two approaches. The steps included are:
► Identification of major Economic projects & timelines (which have been ratified by the
Government)
► Listing the States & Industries that are getting impacted
► Identifying the emerging clusters for the top industries
Above three approaches resulted in the first list of locations. It was important to create a common
framework to choose the most appropriate location. In this context “systems approach” was applied.
Systems approach takes in to account the presence of entire ecosystem for a TC in the catchment
area11 and a Location Attractiveness (LA) Index was created.
A Technology Centre will perform better in achieving its objectives if it is established

at a location with better LA Index.
Construct of LA Index:
LA Index Score= Catchment Score * Presence of TC Score
Catchment Score = ƒx (MSME Unit Score * ITI/PT Score * Presence of Major Firms Score* Presence
of Leading Technical Institute Score)
Presence of TC Score= Presence of state/private technology center in the catchment area
Following data prints were captured and analysed:
► Number of MSMEs, Number of ITIs /Polytechnics, Number of Major Firms, Leading

Technology Institutes for R&D
► Existence of TCs in the Catchment area (inclusive of DC-MSME, State Government , and
Private Tool Rooms)
MSME Units: This reflects the concentration of MSME and it is envisaged that larger the number of
units more opportunity for TC to impact the competitiveness.
10
Existing Technology Centers are more than 25 year old.
11
Catchment Area = District of the location and all neighbouring districts (transcending state boundaries) it is assumed that
maximum value creation will be in the immediate surroundings of the Technology Center.
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Number of ITIs/Polytechnics: This reflects the availability of population seeking skill development
courses. It has also been observed that students from ITI and polytechnic form a large group of
students seeking vocational training at TCs due to lack of such facilities at their respective institutes.
Number of Major Firms: It has been observed that often larger firms take the initiatives to go for
technology upgrades and performance improvements. This leads to cascading effect and firm’s
suppliers, competitors follow up these initiatives in order to stay competitive. If a TC has larger
number of such major firms in the vicinity it will have more opportunity to do technology
collaborations and thus impact the entire ecosystem.
Leading Technology Institutes: Each TC can play a vital role to establish an Industry- Academia
partnership. It has been found that while there are researched ideas available at the academia but
they have difficulty in commercializing same. On the other hand the industries are looking for the
fresh ideas to improve upon their competitiveness in the market. Unfortunately this linkage does not
happen as industry has the need for ideas where the proof of concept is ready but unfortunately
academia does not go beyond research. TC can play a role of bridging this gap and create the platform
to link industry and academia.
State/Private TC: TC can play a vital role in mentoring and improving the performance of the state
government or private sector TCs (tool rooms). If there are such opportunities in the vicinity of the
MoMSME TC it can further increase the reach of TC to improve the competitiveness of MSMEs.
The weightages assigned to each parameter were as below:
Figure 3: Weightage assignment
In order to further refine the list of locations arrived using the above approach, following additional
criteria for shortlisting the industries were incorporated:
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► Prior experience: These are the sectors where O/o DC-MSME has experience of operating
TCs, such as General Engineering, Automotive, Electronics/ESDM, Leather & Footwear,
Glassware, Sports Goods, and Fragrance & Flavours
► Concentration of MSME’s: These are sectors where O/o DC-MSME has limited prior
experience of operating TCs, however there exist a large number of MSMEs in these
industries. Such as Food processing, Textiles (including Handlooms & Handicrafts),
Pharmaceuticals, Wood/Paper/Pulp, and Rubber & Plastics.
► Emerging Sectors: These are upcoming sectors that may be at the forming stage, but will
become major sectors in the near future, such as Bio-technology, Nano -technology, etc.
The sector in which DC-MSME has prior experience has been taken on priority. These sectors are:
auto components, ESDM, general engineering, fragrance & flavour, leather & footwear, glass. Later
the scope can be expanded to include other sectors pertaining to ministries other than MoMSME, if
needed. Such sectors include food processing, pharmaceutical, packaging etc. where presence of
MSMEs is considerable.
The list of locations arrived by the above was further refined and finalised with respect to the
following additional considerations;
► State Classification: The states were classified into two categories as unserved states and
served states. All states of the country were distributed between Un-served states where O/o
DC-MSME did not have an operating TC and served states where an operating MoMSME TC
existed.
► At first unserved states were considered for the new TC in order to spread the coverage of
MoMSME TC which would help in supporting more MSMEs across the country. With the
approval of locations for the unserved states, served states would also be considered for the
technologies for which existing TC cannot support.
► On the basis of MSMEs concentration in prior experience sectors, leading clusters were
identified in each unserved state. This resulted in identifying the industry wise potential
locations in each of these states.
► Some of the unserved states took proactive approach and have allocated or identified land
for the purpose of TC. These locations were mapped to the locations identified in the step
above. Accordingly technology focus was selected for these locations.
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Selection of Bhopal location for setting up of new TC
As per the location selection framework and subsequent approval in the 9th PSC meeting held on 22nd
January 2916, Bhopal was selected as the location for setting up of new Technology Centre. Bhopal
region has been found suitable from multiple perspectives:
► Bhopal is the capital of Madhya Pradesh which is one of the fastest growing states of India. A
strategically beneficial location of Bhopal that is in the middle of both the Nation and State makes
various immediate benefits for the district.
► Bhopal has very good connectivity with other key districts in Madhya Pradesh like Indore and also
with the major cities of the country like Delhi and Mumbai. Bhopal offers a well-planned road
network, a strong railway network for convenient inter-state transport, a well-equipped Raja Bhoj
airport to support regular flights to and from major Indian cities such as Delhi, Mumbai, Indore,
Ahmedabad, Raipur and Hyderabad.
► Catchment area of Bhopal has some of the leading manufacturing companies, auto and auto
ancillary units. A TC in Bhopal will help improve manufacturing competitiveness.
► There are six industrial cluster in Bhopal, namely: Engineering, Fabrication, Biotechnology,
Information Technology (IT), and Food Processing. Among these the engineering cluster in
Govindpura is the major one having the highest number of industrial units in the district that is
1143 industrial Units.
There are various clusters around Bhopal such as Electrical Goods and Leather product cluster in
Dewas, Engineering clusters in Raisen (Mandideep), Mineral processing and agriculture implements
cluster in Sagar, Plastic packaging and agarbatti cluster in Ujjain etc. which can be supported by
the TC.
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Location Brief
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Location brief
Regional overview
Bhopal is located at the heart of both Madhya Pradesh and India. It is just north of the upper limit of
the Vindhya mountain range located at 23°15′N 77°25′E. Bhopal is 741 km from Delhi, 789 km from
Mumbai, and about 200 Kms from Indore.
In terms of Infrastructure, Bhopal offers a well-planned road network, a strong railway network for
convenient inter-state transport, a well-equipped Raja Bhoj airport to support regular flights to and
from major Indian cities such as Delhi, Mumbai, Indore, Ahmedabad, Raipur and Hyderabad. Along
with this, there is also easy availability of skilled manpower, fertile land, abundant natural resources
and affordable land which has made Bhopal a home to numerous industries. Its economy is essentially
divided into modern and traditional industries. Some prominent industries in Old city include
Engineering Industries, Power Equipment Electrical Goods, and Jewellery etc. Apart from these, it
also has a number of reputed Insurance Companies, Banks and other Financial Organizations.
One of the most important industries of Bhopal are engaged in producing Yarns, Acrylic fibre, sewing
threads, etc. the group in these industries are presently the largest exporter of cotton in India.
The industry related to the production of electrical goods in Bhopal is ruled by the Bharat Heavy
Electricals Limited. BHEL, Bhopal is engaged mainly in producing industrial machines. BHEL also
produce transportation equipment, hydro turbines, hydro generators and heat exchangers. They
produce varieties of power transmission products like transformers, switchgears and large current
rectifiers. The Bhopal Switchgears Private Limited is among the other important suppliers of
electrical goods in the city of Bhopal.
The other important industries in Bhopal are related to the manufacturing of jute and steel products.
Figure 4: Location of Bhopal
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Table 3: Bhopal District snapshot12
Section Quantity/Value
Area (geographical) 2772.40 sq. km

Administration
Tehsil 2 (Berasia, Huzur)
Villages 538 (Berasia: 306, Huzur: 232)
Population
Total 23,71,061
Male 12,39,378
Female 11,28,767
Literacy Rate
Total 82.3%
Male 87.4%
Female 76.6%
Sex Ratio 921
Infant Mortality Rate 49 per 1,000 live births less than one year
Table 4: Madhya Pradesh snapshot13
Section Quantity/Value
Area (geographical) 308,245 sq. km
Administration
Districts 51
Tehsil 364
Villages 54,903
Population (Approx.)
Total 7,26,27,000
Male 3,76,14,000
Female 3,50,15,000
Literacy Rate
Total 70.60%
Male 76.8%
Female 50.30%
Sex Ratio 930
Infant Mortality Rate 59 per 1,000 live births less than one year
12
Bhopal District Industrial Profile, Ministry of MSME
13
Bhopal District Industrial Profile, Ministry of MSME
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Table 5: Status of Water, Electricity, Climate, Temperature in the Bhopal District
Aspect Status Significance for TC
► Water supply in Bhopal is looked after ► The water is drawn from surface
by Public Health Engineering sources so have to contact the PHED
Department (PHED) as well as Bhopal and Bhopal Municipal Corporation.
Water Availability Municipal Corporation. Little less autonomy on water
supply.
► The water supply for Bhopal is drawn
from surface sources which are Upper ► Rain water harvesting system can
Lake and Kolar Dam. help double the capacity of
consumption.
► Electricity is distributed and supplied ► Power Backup to be designed

by Madhya Pradesh Madhya Kshetra keeping emergency and essential
Electricity Availability Vidyut Vitaran Company Limited services/equipment in mind
(MPMKVVCL)
► The average annual rainfall measured ► Good amount of rainfall signifies that
in the region is about 1,123 mm. there is a high capacity of rain water
Climate
► Humidity is 71% harvesting in the TC campus
► South west Wind flows at 22 km/hour
► Conditions mostly cloudy
► Bhopal witnesses extreme warm ► Due to high temperatures in

summers but pleasant winters. summers, there is a high estimation
► The temperature in Bhopal varies of capacity of AC to be installed for
Temperature from 9 degree Celsius in winters to adequate cooling, designing of
around 46 degree Celsius in summer building.
season.
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Demographic profile of the district
► The population Growth: The total population of Bhopal district is 23.71 Lakhs (census 2011).
The growth of population in Bhopal district was 28.62% during the last decade (year 2001-
11). Out of total population, 52.27% are men and 47.72% are women. Density of population
is 855 persons per sq. km.
Figure 5: Growth of Population in Bhopal District14
► Bhopal district has an urban population of 80.85% and a rural population of 19.15% as per
census 2011. In urban area, males constitute 52% of the population and women constitute
for 48% of the population. In rural area, men constitute around 52.5% of the population and
women constitute 47.5% of the population.
► The Literacy rate of Bhopal district is around 80%. Among male it is 85.5% and for females it
is 75%.
► The sex Ratio at the district level is 931 females per 1000 males (year 2011).
► There are many popular spoken languages in Bhopal, but Hindi is the most commonly used
and official language. People from varied background stay in Bhopal so languages of different
regions are spoken here as well, other commonly used languages are Urdu, Gujarati, Marathi,
Sindhi. There are many people who speak in different dialect of Hindi like Malwi, Bundelkhandi
and Chattisgarhi. In present days, English is also counted among the most widely used
languages in Bhopal.
14
www.censusindia.gov.in/2011census/dchb/2327_PART_B_DCHB_BHOPAL.pdf
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4.3 Regional Stakeholders

Regional industry associations, leading manufacturers, training institutes, applied research
institutes, academia, thought leaders and above all MSMEs would play an important role in providing
the guidance on key aspects including (but not limited) designing capabilities, technological
requirements, skillset requirement and cluster development.
Government Bodies
MPTRIFAC, CEDMAP, MPAKVN,
CRISP, MPLUN, MPSSIO
Financial Institutions Industry Associations

MUDRA scheme, Govindpur Industrial
SIDBI,MPFC, ICICI,IDBI, Association, CII, FMPCCI,
IFCI, IIBI, IDFC, NBFC, Proposed Mandideep Industrial
UTI etc. Bhopal TC Association etc.
Technical Education and Key Manufacturers and Suppliers

Applied Research Institutions BHEL, HEG, Omega, TAFE, M&M,
ITIs, Engineering Colleges, Eicher, P&G, Ranbaxy, Crompton
Polytechnics, etc. greaves, JK tyre etc.
Figure 6: Stakeholders of Bhopal TC
4.3.1 Government Bodies

► Directorate of Industries
The Industries Department also known as department of commerce, Industries and Employment is
responsible for all round industrial development of the State. The department attracts domestic as
well as foreign investment to uplift the industrial and social economy of the State. It acts as a catalyst
to modernize & strengthen the industrial units of the State to make them globally competent. The
State has industrial friendly atmosphere and suitable policies for development of the industries.
Mobilize establishment of Micro, Small & Medium Industries to achieve employment generation and
utilization of local resource. It also provides a forum for entrepreneurs & industrialist through their
association to represent their needs to the Government, which envisages to make industrial friendly
policies.
The key role of this department are:
 Industrialization of the State

 Development of Small, Medium and Large Scale Industries
 Attract investment to uplift the industrial and social economy of the State.
 Modernize and strengthen the industrial units of the State to make them globally competent.
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 Creation of conducive atmosphere for the industries for enabling them to compete at
national/ international levels.
 Help and coordinate between industry and other agencies & act as a facilitator
 Creation of Basic Infrastructure for Industrial Development
 Help industries by providing them single window clearance and hassle free atmosphere at all
possible places.
 Creation of job opportunities through Self Employment Schemes
 Train and develop the entrepreneurship skills among the educated unemployed youth.
► Madhya Pradesh Trade and Investment Facilitation Corporation Limited (MPTRIFAC),
Madhya Pradesh
Madhya Pradesh Trade & Investment Facilitation Corporation Limited (TRIFAC) formerly known as
Madhya Pradesh Export Corporation Limited, is a Company established under Companies Act 1956
and owned by Government of Madhya Pradesh. (Certificate of Incorporation) Since 2004, TRIFAC is
functioning as Single Window Facilitation Centre for Investment promotion in Madhya Pradesh. This
System allows investor to apply online for various services offered by Commerce Industry and
Employment Department like Land Allotment, Land Transfer, Land Booking, Building Permission,
Water Allocation etc.
The Key Role of this department are:
 To facilitate industry, investment and employment generation in Madhya Pradesh.

 To function as a secretariat for implementing the Single window system for project clearance,
implementation and policy formulation.
 To provide effective pre-investment and post investment service by establishing co-
ordination between different agencies and act as on interface between entrepreneurs and
the Government.
 To participate continuously in the development process of creating the right business
environment in the State by advising on policy and regulatory measures.
► MP Audyogik Kendra Vikas Nigam (MPAKVN), Bhopal
MPAKVN, was incorporated on 16th October 1987 under the Indian Companies Act 1956. The Nigam
has been entrusted the responsibility of Industrial promotion through development of Industrial
Growth Centres in selected areas of its jurisdiction in the State of Madhya Pradesh. Authorized Share
Capital of the Corporation is Rs. 700.00 lakhs and Issued, subscribed & paid-up capital of the
corporation is Rs. 285.01 Lakhs. The key role of MPAKVN is:
 Allot land to industrial Units under growth centres.

 Development and maintenance of the allotted industrial units.
 Water supply to the industrial units.
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► The Centre for Entrepreneurship Development (CEDMAP), Madhya Pradesh
The Centre for Entrepreneurship Development Madhya Pradesh widely known as CEDMAP in a span
of over 25 years has achieved enormous success in the field of entrepreneurship development
activities for upliftment of society in the state of Madhya Pradesh. CEDMAP, promoted by the state
government of Madhya Pradesh and Central Financial Institution as well as lead bank of the state, is
an autonomous body and not-for-profit institution set up in the year 1988, registered under the Firms
& Societies Act 1973. CEDMAP, being an ISO 9001:2008 certified institution, today enjoys the status
of a premiere institution for undertaking various entrepreneurship, skill as well as livelihood
development activities in Madhya Pradesh.
► Centre for Research and Industrial Staff Performance (CRISP), Bhopal
Centre for Research and Industrial Staff Performance, (CRISP), Bhopal was established in the year
1997 as a premier service providing institution in Hi-tech areas. The institution has an autonomous
status as Society under the bilateral cooperation between the Government of Madhya Pradesh and
the Federal Republic of Germany under their Indo–German Technical Cooperation agreement therein
the Ministry of SME, Government of India was the line Ministry. The Department of Technical
Education & Skill Development, Government of Madhya Pradesh and German Technical Cooperation
agency (GIZ) were the implementation partners. The Society has representation from the industry,
the academia, Government and the German partners.
The Headquarter of CRISP spreads over 2.5 Acres of Land and is located in Central India, in Bhopal,
the capital of Madhya Pradesh, It has established its centres at several national & international
locations.
Few of its unique features are:
 It is a nodal Centre for the Department of Technical Education & Skill Development
Government of Madhya Pradesh for :
 Technical and management staff capacity building.
 Designing and development of competence based curriculum and supporting
learning material for Employable Vocational Training & Skill Enrichment training.
 Well-developed network of more than 500 delighted clients from Industries, Central & State
Government and Academia & Developmental Organisations.
 Role model of self-sustainability, replicated in Gujarat and Andhra Pradesh.
 Role model for German Technical Co-operation Agency (GIZ) for replicating “CRISP-like”
successful Projects in India and other countries.
 Facilitating applications of e-Governance for the State Govt. of Madhya Pradesh and Gujarat.
 Appointed as consultant for Engineering & Polytechnic Colleges of M.P. for the TEQUIP
(Technical Education and Quality Improvement) Programme, under the World Bank Assisted
Program.
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 Recognised by Central Government Ministry of Labour for Curriculum and Instructional

material development under the “Centre of Excellence” Scheme.
 The only functional State Initiated Design Centre (SIDC) in the State, set-up by the by the
Ministry of Textiles, for offering Design related programmes and consultancy.
 Trained more than 200,000 personnel from all quarters on sophisticated modules, designed
in consultation with International experts & Industries.
► Madhya Pradesh Laghu Udyog Nigam (MPLUN), Madhya Pradesh
M.P. Laghu Udyog Nigam (MPLUN) is a Government of M. P. Undertaking established in the year
1961, with a view to promote the Small Scale Industries of the State and to perform the Store
Purchase functions of the Government of Madhya Pradesh.
With an experience of more than two decades, in the field of marketing, the MPLUN is now a
professional procurement organization. The procurement activity is supported by an independent
technical department equipped with a team of experts in the field of Mechanical, Electrical, Textile,
Chemical, and Pharmaceutical, along with a number of our own Testing labs.
Today, MPLUN's objective is to provide quality products at reasonable rates, to various departments
of the State Government. The MP Government has reserved 149 items, for preferential purchase
from SSI sector of Madhya Pradesh, through MPLUN only, under its Store Purchase Rules. Many
Central Government Departments in the State, are also increasingly procuring their requirements
through MPLUN, obtaining our expert assistance at nominal service charges.
Since its inception in 1961, the Nigam is constantly implementing the State Government's policies
for development of SSI sector. MPLUN today has diversified, expanded and increased its activities -
all aimed to encourage, develop and sustain the SSI sector.
► Madhya Pradesh Small Scale Industries Organisation (MPSSIO), Bhopal
Madhya Pradesh Small Scale Industries Organization was established in 1959-60. Madhya Pradesh
Small Scale Industries Organization is an apex organization for micro, small & medium enterprises
right from its establishment. The organization is working for development, protection & expansion of
MSME sector in Madhya Pradesh. The organization is having representation in almost all the advisory
boards related to trade & industry in the state government as well as at central government. The
organization is also having representation in the Empowered Committee Constituted by the Reserve
Bank of India. Thus the organization is able to present the suggestion, demands & relaxations to the
government for strengthening the MSME.
Marketing is the major area, where micro & small industry require support. The organization came
forward for this cause under the dynamic leadership of organization’s head & the members
participated in various trade fairs in and outside the country. This activity have given enough
confidence to small scale industries that they are having lot of potential & ability to sale their products
on global basis. The govt. of India have also awarded & support the financial assistance to the
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organization for its upliftment. The German organization like ZDH. SEQUA have come forward for
partnership with organization to support the MSME BMO’s of Madhya Pradesh.
Bulletin “UDYAM PRERNA” is the face of the organization. This bulleting has become one of the most
wanted magazine for industry as it contains matter related to trade & industry, Individuals, Govt.
Notifications, state/central govt. policies & many matter related to direct/indirect taxes, excise,
promotional activities & the success story of entrepreneurs. It is lively magazine to go through it. The
magazine is widely circulated to the members, associations, govt. officials & to the other
beneficiaries.
Presently, the organization is having about 1200 members all over in the state including about 20
Dist. Level associations. The organization has got representation almost at all places up to the tehsil
level for its proper working throughout the state.
4.3.2 Industry Associations

► Govindpura Industries Association (GIA), Bhopal
Govindpura Industries Association (GIA) came into existence in 1968. GIA is the oldest industry
association of state of Madhya Pradesh. Govindpura Industries Association is the biggest engineering
cluster of India.
 The main objective of this Association is to give fullest possible support to the member
industries in achieving their business goals and to provide guidance and represent them in
the matter of infrastructure, amenities, taxation and litigation, to the Government.
 Its members are mostly engineering industries engaged in manufacturing equipments mainly
for power sector.
 The association is representative of close to 900 micro, small, medium and large industries
producing various types of components and equipments required for Transformers, Motors,
Generators, Turbines and Switchgear. There are OEM'S also.
 These industries are spread over 700 acres of land known as Govindpura Industrial Area
situated in Bhopal. The combined turnover of the area is more than 2000 crores including
exports.
 Its clientele includes Indian Railways, Defence, Power sector OEM's multinationals,
Government and public sector enterprises.
► Confederation of Indian Industries (CII) , Bhopal
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to
the development of India, partnering industry, Government, and civil society, through advisory and
consultative processes. CII is a non-government, not-for-profit, industry-led and industry-managed
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organization, playing a proactive role in India's development process. Founded in 1895, India's
premier business association has over 8000 members, from the private as well as public sectors,
including SMEs and MNCs, and an indirect membership of over 200,000 enterprises from around 240
national and regional sectoral industry bodies.
CII charts change by working closely with Government on policy issues, interfacing with thought
leaders, and enhancing efficiency, competitiveness and business opportunities for industry through
a range of specialized services and strategic global linkages. It also provides a platform for
consensus-building and networking on key issues.
The CII theme for 2016-17, Building National Competitiveness, emphasizes Industry's role in
partnering Government to accelerate competitiveness across sectors, with sustained global
competitiveness as the goal. The focus is on six key enablers: Human Development; Corporate
Integrity and Good Citizenship; Ease of Doing Business; Innovation and Technical Capability;
Sustainability; and Integration with the World.
With 66 offices, including 9 Centres of Excellence, in India, and 9 overseas offices in Australia,
Bahrain, China, Egypt, France, Germany, Singapore, UK, and USA, as well as institutional
partnerships with 320 counterpart organizations in 106 countries, CII serves as a reference point for
Indian industry and the international business community.
► Federation of Madhya Pradesh Chambers of Commerce and Industry (FMPCCI), Bhopal
Federation of Madhya Pradesh Chambers of Commerce and Industry, Bhopal is a registered society
under the Madhya Pradesh Societies Registrikaran Adhiniyam, 1973 with its registered office at
Bhopal. It is a leading federation in the state of Madhya Pradesh. Presently, the federation is presided
over by Shri Ramesh Chandra Agrawal, who is the chairman of Dainik Bhaskar Group of India.
The core focus areas of the the federation are:
 Innovation and R&D through technology

 Women Entrepreneurship
 Self Employed Entrepreneurship of Madhya Pradesh
 Employment Provider
 Export
 Import
 Rural Enterprise
 Corporate Social Responsibility
► Indo-German Tool Room, Indore
Indo German Tool Room, Indore, established in 1995. One of the leading tool room in Central part of
India. Tool Room was established with assistance from Federal Republic of Germany and Government
of India. We are engaged in designing and manufacturing of Press Tools (Sheet metal dies), Plastics
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Injection Moulds, Die Casting dies, Jigs , Fixtures & Gauges along with other precision job work on
CNC machining centre, CNC EDM and Wire-cut etc.
We also conduct recognized Long, Medium as well as Short-term Technical Training courses for all
types of Industries.
4.3.3 Key Manufacturers and Suppliers

► Bharat Heavy Electricals Limited (BHEL), Bhopal
They are an integrated power plant equipment manufacturer and one of the largest engineering and
manufacturing companies in India in terms of turnover. It was established in 1964. The company has
been earning profits continuously since 1971-72 and paying dividends since 1976-77.
 They are engaged in the design, engineering, manufacture, construction, testing,

commissioning and servicing of a wide range of products and services for the core sectors of
the economy, viz. Power, Transmission, Industry, Transportation (Railway), Renewable
Energy, Oil & Gas and Defence.
 They have 15 manufacturing divisions, two repair units, four regional offices, eight service
centres and 15 regional centres and currently operate at more than 150 project sites across
India and abroad.
 There partners include General Electric Company, Alstom SA, Siemens AG and Mitsubishi
Heavy Industries Ltd.
 They have a share of 59% in India’s total installed generating capacity contributing 69%
(approx.) to the total power generated from utility sets (excluding non-conventional capacity)
as of March 31, 2012.
 The cumulative overseas installed capacity of BHEL manufactured power plants exceeds
9,000 MW across 21 countries including Malaysia, Oman, Iraq, the UAE, Bhutan, Egypt and
New Zealand.
► HEG LTD, Bhopal
HEG Ltd is today India's leading graphite electrode manufacturer. It has one of the largest integrated
Graphite Electrode plants in the world, processing sophisticated UHP (Ultra High Power) Electrodes.
 The company exports over 80% of its production to more than 25 countries of the world.
 The position the company enjoys today in India and abroad is largely due to its commitment
to constant upgradation of its product quality to match international standards and to meet
new challenges to win and excel in all situations.
 In Graphite, they focus on UHP grade electrodes.
 They have a Captive Power Plant generating more than 77 MW.
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► Omega Industries Pvt Ltd. Bhopal
Omega Industries Pvt. Ltd. started in 1960 as an ancillary to BHEL, Bhopal. Since its inception as a
small unit manufacturing Axle Suspension Bearing for Traction Motors, the company graduated to
White Metal Lined Turbine and Generator bearings for 210 MW and 500 MW sets.
Omega Industries is now one of the leading manufacturers of White Metal Lined Brush Bearings and
has supplied as original equipment or spares to all key industries - Government, Public and Private.
OMEGA is now a foreign exchange earner with exports to Germany, Canada etc.; with foreign
exchange worth crores of rupees by providing import substitution.
Some of the other major manufactures and companies in the catchment areas are:
 TAFE Motors
 Eicher Motors
 Hindustan Motors
 MAN Force Trucks Private Limited
 CNH Industrial
 JK Tyre
 Bajaj
 Bharat Petroleum, Bina Refinery
 Crompton Greaves
 Procter & Gamble
 Ranbaxy
 Cadbury
 Daawat food
 Vardhman Fabrication
4.3.4 Financial Institutions

► Pradhan Mantri Mudra Yojana (PMMY)
Under the Micro Units Development and Refinance Agency (MUDRA) Bank, comes a new institution
which was set up by Government of India for development and refinancing activities relating to micro
units. It was announced by the Finance Minister while presenting the Union Budget for FY 2016. The
purpose of MUDRA is to provide funding to the non-corporate small business sector. Loans worth
about Rs 1 lakh crore have been sanctioned to small entrepreneurs under the Pradhan Mantri MUDRA
Yojana
► Bhopal is the capital city of Madhya Pradesh, so it is infused with many private, public and
cooperate banks. Some of the important financial institutes are:
 Small Industries Development Bank of India (SIDBI)
 Madhya Pradesh Financial Corporation (MPFC)
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 Industrial Credit and Investment Corporation of India (ICICI)

 Industrial Credit and Investment Corporation of India Ventures (ICICI Ventures)
 Industrial Development Bank of India (IDBI)
 Industrial Finance Corporation of India (IFCI)
 Industrial Investment Bank of India (IIBI)
 Infrastructure Development Finance Company (IDFC)
 National Small Industries Corporation (NSIC)
 Non-Banking Financial Company (NBFC)
 North Eastern Development Finance Corporation (NEDFC)
 Risk Capital and Technology Finance (RCTF)
 State Financial Corporations (SFCs)
 State Industrial Development Corporations (SIDCs)
 Unit Trust of India (UTI)
4.3.4 Technical and Research Institutes
Bhopal being the capital of the state of Madhya Pradesh and coincidentally situated in the centre of
the state, its catchment area covers most of the whole state. That’s why Bhopal have a strategic
advantage for the intake of man-power from different parts of the state
The details of technical and vocational training institutes supplying skilled man-power in the
catchment have been given as follows:
Table 6: Intake capacity at technical institutions in Madhya Pradesh15

► Technical Education:
No. of Intake Capacity
Type of institute
There are 9 universities, 18 national level Institute (2013-14)
institutions, 78 engineering colleges (including ITI 886 1,15,920
5 university institutions, 4 government Polytechnic 99 8,479
declared autonomous colleges, 1 self- Engineering 299 1,50,660
financing institution and 64 private Total 1,284 2,75,059
institutions), and 47 polytechnics. Renowned
educational institutes and other apex institutions like Indian Institute of Management (IIM), Indore;
Maulana Azad National Institute of Technology (MANIT), Bhopal; ABV Indian Institute of Information
Technology and Management, Gwalior; Central Institute of Agricultural Engineering, Bhopal; Indian
Institute of Soil Science, Bhopal; National Technical Teacher’s Training Institute (NTTTI), Bhopal;
Central Farm Machinery Training and Testing Institute, Budni; PSS Central Institute of Vocational
15
Madhya Pradesh Development Report by Planning commission, Government of India,
http://dget.nic.in/content/institute/key-statistics.php
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Education (PSSCIVE), Bhopal; Central Institute of Plastic Engineering and Technology (CIPET),
Bhopal; Centre for Advanced Technology (CAT), Indore are already functional in and around Bhopal.
► Vocational Training:
There are 163 vocational training institute in Bhopal District. And there are 446 more vocational
training institutes in the catchment area, summing up to the total of 609 institutes.
Madhya Pradesh Council for Vocational Education & Training (MPCVET) is the apex body for
monitoring, coordination, convergence and providing overall policy direction for skill development
activities in Madhya Pradesh.
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Opportunity and
Need Assessment
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Opportunity and need assessment
Overall Market size
The tooling industry, that consists of developing and manufacturing dies, moulds, casts, as well as
testing and prototyping serves as the interface between product design and product manufacturing.
Growth of these manufacturing related industries, therefore, drives the growth in demand for tooling.
The constraints to the growth and competitiveness of the Indian tooling industry mirror the ones
affecting manufacturing as a whole. The scarcity of skilled workers and problems related to their
retention, as well as the lack of access to a high-quality design and prototyping facility, has hurt
growth.
The trend of growing demand for tooling market is illustrated in the figure below:
Size of the tooling market in India

300.00
254
250.00
220
INR (100 Crores)
200.00 191
160.80
150.00 132.80
110.25
100.00 91.90
80.00
70.00
61.00
53.00
50.00 38.44 42.54 46.74
30.50 33.53
0.00
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Financial Year
Figure 7: Size of the Tooling market in India
Indian Tool Room industry size is estimated at ~INR 13,000 Cr. (2010-11)16 which can be divided
into two key segments - domestic (captive and commercial) and imports. Domestic Tool Rooms
market is estimated at INR 9,284 Cr out of which INR 3,129 crores is generated from captive tool
rooms and commercial tool rooms (CTRs) account for INR 5,955 crores. Imports are to the tune of
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INR 4,150 Cr. In order to arrive at the addressable market for MSME TCs, a further analysis of the
above three segments has been carried out.
Estimated tooling demand as per TAGMA

(INR ~ 13,000 Cr)
Domestic Imports
(INR ~ 9,000 Cr) (INR ~ 4,000 Cr)
Captive Commercial TRs

(INR ~ 3,000 Cr) (INR ~ 6,000 Cr)
Figure 8: Structure of Tooling Market
In-house (Captive) Tool Rooms: Captive Figure 9: Composition of captive segment
Tool Rooms mainly belong to the large and

medium scale companies that develop
tools for in house requirement, e.g. auto
component, plastic, packaging etc. Such
Tool Rooms have state of the art
equipment to meet the internal
requirements. Auto components and
OEMs constitute around 70% of this
segment. Quality tooling is critical to produce high quality finished components and such companies
perceive that quality of the components can be maintained only by developing tools in house or
through imports from their foreign counterparts which also ensures steady supply as per
requirement. Another major reason for captive tool making is that these companies don’t want to
share their designs of tools to safeguard intellectual property of the company. Nearly 70% of auto
and auto component companies except
Figure 10: Composition of CTPs segment
from Indian manufacturers, primarily
import their tooling or have a captive Tool
Room mainly due to lack of raw material
quality and IP content. Indian Commercial
Tool Rooms suffer from capacity
constraint causing an increase in the lead
time for manufacturing the tools to meet
the demand of the end users. Thus, captive
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segment does not present a significant opportunity that can be targeted by MSME tool rooms.
Commercial Tool Rooms (CTRs): Commercial Tool Rooms account for ~ 46% of the total tooling
market. Commercial Tool Rooms supply tooling on a commercial basis to a variety of industries and
operate as independent companies. Besides manufacturing tooling, some Commercial Tool Rooms
also undertake precision machining and component manufacturing. This segment with an estimated
market size of the 6,000 crores (in year 2011) is the immediate low hanging fruit which can be
addressed by MSME TCs by supporting Commercial Tool Rooms. It has been observed that
Commercial Tool Rooms have insufficient capacity that leads to an increase in lead time for
manufacturing of tools.
Imports: Imports account for 31% of the Figure 11: Composition of imports segment
total tooling market which is around INR
4,000 crores. As per TAGMA report and our
discussions with some of the Private Tool
Rooms, key reasons for tooling imports are;
► Quality: Better surface finish, lower

turnaround time and higher degree of
accuracy by ability to meet the
tolerance range.
► Capacity: Insufficient capacity of Indian tool rooms to meet domestic demand and lack of
infrastructure to make certain types of tools also results into imports.
► Cost: Higher price, non-availability of materials at par with the international standards, use of
out dated technology due to absence of advance machinery compromises the quality of
commercial tool rooms leading to demand for imports. In Countries like China and Taiwan, the
tooling cost is lower than India.
► Design: International companies based in India prefer procurement of their tooling from their
parent company to maintain design standards across the globe e.g. LG & Samsung import most
of their tooling from Korea.
Auto OEMs and components segment account for around 75% of the total imports in tooling.
International companies like Volkswagen, General Motors and Siemens etc. still prefer international
tool makers for superior quality. The rest 25 % i.e. accounts for tooling requirements from other
sectors which can be addressed by MSME Tool Rooms. This pushes the customers to look outward to
fulfil their requirements.
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Total addressable market for MSME Tool Rooms is about INR 7,000 crores (6,000 for Commercial
Tool Rooms + 1,000 crores imports, especially those imports which take place as a result of
insufficient capacity of domestic Commercial Tool Rooms.
To start with, the primary focus could be addressing the capacity constraint in the domestic tool room
industry in the short run. However, a focused approach towards specialised tool production in the
long run can help capture a part of imports which is being replaced by domestic supply from
Commercial Tool Rooms. This would require additional support to Tool rooms just more than financial
support and assistance. In the long run – MSME TCs can address rest of the market by,
► Increase in specialisation,
► Process standardisation,
► Safeguards to protect IP,
► Sharpen focus on quality and reduction in lead times
Primary Research
As a part of preparing the DPR, discussions with some OEMs, MSMEs, industry associations, and other
stakeholders in the Bhopal region were carried out. The objective of the primary research was to
understand the business requirements, issues, challenges, and future requirements of the industry
to develop a deeper appreciation of the requirements that the Technology Centre Systems Program
of the O/o DC MSME can serve. The research also included the support requirements of players with
respect to designing, training, manufacturing and consultancy.
Stakeholders workshop was held at Bhopal on 4th May 2016 with members of industry associations,
MSMEs and State Government. 17. Meetings and detailed discussions were held with large OEMs and
institutes in the vicinity like BHEL, TAFE, CRISP, CIPET etc. to understand their needs and potential
areas of support.
Key inferences drawn from the primary research are as follows:
► The main items produced are die cast products including use of moulds. Other important
products include sheet metal products, rubber products and plastic parts.
► The main manufacturing processes in use were moulding, welding, die casting, forging,
hydraulic pressing processes, CNC (Computer Numerical Control) such as VMC.
► There is scope for MSME’s in making moulds, dies and sheet metal tools.
► The main managerial manpower requirements of these companies are engineering (B. Tech
engineering/ diploma engineering and tooling engineering) with project management skills
and manpower handling skills. The machine operators are generally ITI graduates in the
respective field of manufacturing.
17
Details about stakeholders workshop in Annexure 18.2
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► Approximately 20% of the companies face human resource problems w.r.t. project
management skills, leadership and motivational skills, manpower management skills, less
availability of workforce, disciplinary issues and industrial training.
► MSMEs and OEMs required trained manpower for
o CNC Machine Operation
o CAD / CAM design
o Plant maintenance
o Heat treatment process
o Industrial Automation
Further similar kinds of inferences were also observed during telephonic discussion with 19
players across the country in Hyderabad, Karnataka, Chennai, Aurangabad and Ahmedabad w.r.t.
support requirements of these players for designing, training, manufacturing and consultancy carried
on. There is a need to position the MSME tool rooms to support the commercial tool rooms to
strengthen their design capabilities and capacity to manufacture complex tools. Further, there is also
a need to create more awareness of new technologies and opportunities among private tool rooms
to enable them to serve that market.
Summary of challenges faced by players based on primary research:
a. At the industry level

► Absence of or limited automation in the manufacturing process in India;
 Leads to low machine utilisation of around 50-55% on an average (best in India is
around 70-75%) compared to 95-99% abroad in China where a single operator
manages multiple machines
 Main reason is lack of knowledge/ awareness of low cost automation technologies
► Lack of standardisation
 Limited or very small number of standardised components for mould design in India
cause delay in the production process. For every mould to be developed, designing is
done from scratch to finish. In China & Malaysia the standardised component usage is
very high and therefore concentration is more on core & cavity design of the mould
resulting in better quality and faster production
 Use of Standardised components helps to deliver moulds in 6 week in China compared
to 16 weeks required in India
► Lack of availability of skilled workers& high attrition/ job hopping, shortage of trained
manpower at machine operator
► Low capacity and lack of capability to develop heavy and precision machines requiring a
high proportion of the CNC machines to be imported (2/3rd of the total CNC machines)
mainly because of the capital intensive nature of investment
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► Others
 Limited/ slow adaptability of technology by domestic TRs due to perception of
quality about domestically developed products
 Dispersed/ unorganised industry structure
 High cost of inputs makes Indian machines costly to users as compared to those
imported
b. Other macroeconomic factors
► High interest rates of borrowing (~14%) which discourage investments by compromising
viability
► Lower customs duty making imports more attractive and does not encourage domestic
transfer of technology and local manufacturing and / or value addition
► Export efforts constrained by high cost of maintaining a presence in overseas markets
Challenges faced by MSME TRs
An analysis of the existing MSME TRs in India reveals that limited efficiency in production has caused
loss of some of its clients to private Tool Rooms or cheaper options from other countries. One of the
Figure 12: Absence of competitive advantage
key reasons identified has been the generic
nature of tool development by MSME Tool
Rooms rather than catering to a specialised
category.
Generalised Tool Rooms are the norm in India

due to;
► High capital investment requirement,

► To cater to a larger market,
► Low volumes in specific categories,
► Better risk management and
► Absence of specialisation
Whereas these Tool Rooms produce a variety of

tools, they lack competitive advantage in any of the categories due to lower efficiencies mainly due
to the technology used. Time taken for delivery of the product is longer due to;
► Technology set ups and bottle necks in the manufacturing processes,

► High cost of inputs due to fragmented and unplanned procurement,
► Lower design capabilities due to lack of specialisation
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All these factors result in escalated costs and a further loss of competitive advantage. This reflects
in the low volumes of tool production orders, which prevents the industry in tapping into the
advantages of large scale production and economies of scale.
If MSME Tool Rooms specialise in a particular tool or tool production for a specialized sector, chances
of developing competitive advantage become high. In Germany, a TR of Zitzmann Inc. specialises in
particular type of mould development required for manufacturing glass bottles. It has got substantial
competitive advantage in the production of such tools. Similarly, in China a TR of China Taoshi Mould
has more than 120 machines ranging between 40,000 – 75,000 rpm that specialises in a particular
type of moulds whereas for the Indian counterpart the machines range between 12,000 to 20,000
rpm. This results in on an average, procurement of a certain type of mould from China takes one
third of the time it takes to be procured from within India. This is mainly due to low productivity and
non-standardised use of tooling components in India.
Specialisation in the production process leads to some degree of standardisation enabling the Tool
Room to maintain inventory levels which subsequently reduce the turnaround time for procurement.
Absence of design facilities/ good designers in the MSME TRs is another important issue. Further,
non-alignment of the compensation structure for designers as per that of the market makes it difficult
to retain the designers in the long term.
Case study 1: Specialised tool rooms in the world - Zitzmann GmbH & Co.KG, Germany
► Zitzmann glass mould is a large supplier of high quality moulds for the leading glass
companies in Germany
► Specializes in manufacturing of moulds for complex container designs such as;
 High quality perfume flacons
 Medicine bottles, tins, jars
 Shaped bottles 3ml – 4250ml
 Block moulds, solid blank mould
► Its production portfolio includes complete mould sets, semi-finished parts, accessories in
normal casting, special casting steel or bronze, vacuum full profile coating as well as flame
spraying full profile coating
► It’s in house facilities include latest technologies and production methods like;
 CAD/CAM design using Catia V5
 The latest CNC machines in the turning and milling sector
 Full profile welded moulds
 Induction heat treatment and additional plasma welding
► It has around 120 highly skilled technicians producing more than 30,000 moulds per year
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Case study 2: Specialised tool rooms in the world - China Taoshi Mould, China
► A well-known and one of the biggest plastic mould designing and manufacturing enterprise
► Manufacturer of moulds, specializing in plastic moulds for automobiles, house electric
equipment, electronic products, motorcycle, and other daily-used pieces etc.
► In house facilities include;
 Large-size CNC equipment including high speed CNC and EDM machines etc.
 Advanced CAD/CAM/CAE system
 Workstation and software of Pro-E, FFCAE, CIMATRON, etc.
► It has more than 600 employees including middle/high administrators and around 180
technicians
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Market opportunity
The fastener and auto ancillary segment has seen large scale investments in and around Bhopal. It
has become a prominent base for auto manufacturing, Railway repairing and Defense Vehicle
manufacturing with the establishment of a growing auto cluster in Bhopal and its catchment area.
Madhya Pradesh is also known as the land of diamonds, there are big diamond mines at panna district
in Madhya Pradesh. Tools required for the mining of diamonds are also produced by the MSME
industries. New TC at Bhopal will boost the tool manufacturing of equipment required for the
extraction of diamond.
► Bhopal region is spread over approximately 2772 sq. km and have three industrial areas
within 56km: Mandideep (22.3 km), Govindpur industrial area (6km), Pilukhedi (56km).
► The Industrial area of Govindpur and Mandideep consist a good amount of companies in there
bouquet. Some of the companies are, TAFE, Eicher motors, HEG, P&G and many more
renowned names.
Bhopal is situated in the heart of both Madhya Pradesh and India, this strategically advantageous
position make Bhopal very accessible district almost from most of the country. Bhopal offers a well-
planned road network, a strong railway network for convenient inter-state transport, a well-equipped
Raja Bhoj airport to support regular flights to and from major Indian cities such as Delhi, Mumbai,
Indore, Ahmedabad, Raipur and Hyderabad.
Figure 13: Technology centre catchment area
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Bhopal TC Target Market
Core sectors
(General Engineering, Requirements from other Market outside the
Fasteners, Auto & auto potential sectors in the catchment area (Core and
components, Electrical catchment area. new sectors)
engg. goods etc.)
Figure 14: Target Market Structure of Bhopal TC
Market in core sectors in the catchment
After 2005 Madhya Pradesh has registered consistent growth rate and has reached India’s top most
state in terms of GDP growth, with a rate of 13.36% GDP for annual year 2014-15. The state has
seven central Public Sector Undertakings. Some of the names are Bharat Heavy Electrical Ltd in
Bhopal, GAIL India Ltd in Guna, National Thermal Power Corporation (NTPC) in Singhroli Etc. The
state also have 12 Central Government Ministerial Undertakings which include 3 Ordinance Factories,
a Defense vehicle Factory, a Gun Carriage Factory, a Heavy Vehicle Factory, Rail coach repair
workshop and a railway zone and few more undertakings.
There are 19,454 micro units, 435 small units and 14 medium units in the state of Madhya Pradesh.
Totalling to 19,903 MSME units in the state, out of these 10,982 MSME units are in Bhopal district.
These units in Bhopal operate in the areas of Engineering units (fasteners, turned components,
Hinges, pipes and steel furniture), metal sheets fabrication, repairing and services, wood based
furniture, readymade garments and embroidery etc.
Figure 15: Core industrial District in the Catchment area
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The district of Raisen comprises of the Mandideep industrial area which is just 25kms from the city
of Bhopal. Industrial units are concentrated only in Mandideep Industrial Area and have achieved a
significant industrial growth, availing the comparative advantage of transport facility, capital city in
vicinity etc. There are 63 Large/Medium scale units which are established in the district. Mandideep
industrial area contributes more than Rs. 6500 crore of industrial production, Rs. 1700 crore of
Export and more than 45000 number of employment. Many companies like Eicher tractor Ltd,
Crompton greaves, Procter and Gamble, HEG ltd, Lupin Laboratories, Amtek auto Parle agro and
many more are operating in this region.
In Chhindwara which is 280 Kms from Bhopal have 6 industrial areas and 1 Food Park. Total
registered industrial units in Chhindwara district is 6209. By the end of 2011, employment in the
registered industrial units was 24,439. The major type of industries in Chhindwara are metal based
(steel fabrication), manufacturing of engineering units, agro based, Rubber plastic and petro based,
chemical based, wood and wooden based furniture etc. There are two large scale industry/Public
sector undertaking: M/s Hindustan Lever Limited and M/s Raymond Limited.
In Vidisha which is 60 Kms from Bhopal have 3 industrial areas. Total registered industrial units in
Vidisha district is 8688. By the end of 2011, employment in the registered industrial units was 8,
02,101. The major type of industries in Vidisha are Engineering and its services, Technical repairing,
Steel fabrication chemical based industries, ready-made garments and embroidery etc.
Dewas, which is 154 Kms away from Bhopal have 4 industrial areas. Total registered industrial units
in Dewas district is 10,643. Employment in Medium and Large industries is 15,680. Major type of
industries in Dewas are Steel fabrication, Rubber plastic and Petro based industries, cotton textile
industries etc. There are 50 Large scale Industries/Public Sector Undertaking in Dewas. Few of them
are: Barlocher India Additives, British Motor Car company, Tata Precision Industries, Ranbaxy
Laboratories, Steel Tubes of India, Tata Internationals, Prestige fabricator, Allianz Steel etc.
The following table enlists the prominent players in and around Bhopal in general engineering,
automotives and other major sectors,
Table 7: Composition of major manufacturing players in the Bhopal catchment
Type Key players18

► Bharat Heavy Electricals Limited, Bhopal
► Rail Coach Repair Workshop, Bhopal
General and Auto
► Omega Renk Bearings Pvt Ltd, Bhopal
Engineering
► TVS, Bhopal
Industries
► Security Paper Mill, Hoshangabad
► Ordinance Factory, Hoshangabad
18
Source : mpinvest.com, mpkvn.com
Page 66 of 242
Type Key players18

► GAIL, Guna
► Amtek Auto Ltd, Mandideep, Raisen
► Eicher Tractor Ltd, Mandideep, Raisen
► HEG Ltd, Mandideep, Raisen
► TAFE Motors and Tractor, Mandideep, Raisen
► Mahindra Steel Service, Mandideep, Raisen
► Bhopal Alloy Casting Pvt Ltd, Rajgarh
► British Motor Car Co Ltd, Dewas
► Tata Precision Industries, Dewas
► Prestige Fabricators, Dewas
► Allianz Steel, Dewas
► John Deere Tractors, Dewas
► Deepak Fasteners, Sehore
► Ramco Industries, Shajapur
► Proctor and Gamble Ltd, Mandideep, Raisen
► Parle Agro Pvt Ltd, Mandideep, Raisen
FMCG ► Godrej Foods Ltd, Mandideep, Raisen
► Hindustan Lever Ltd, Chhindwara
► Hindustan Coca Cola beverages Pvt Ltd, Rajgarh
► Lupin Laboratories, Mandideep, Raisen
Pharma
► Ranbaxy Laboratories, Rajgarh
► Bharat Heavy Electricals Limited, Bhopal
Electricals, ► Crompton Greaves, Mandideep, Raisen
Electronics and ► Optel Telecommunication Ltd, Mandideep, Raisen
Telecommunication ► Fujitsu Optel, Mandideep, Raisen
► IFB Industries, Mandideep, Raisen
► Bharat Oman Refinery Ltd, Sagar
► Surya Agro Oil Ltd, Mandideep, Raisen
Others ► Raymond Ltd, Chhindwara
► Central India Paper and Board Mill Pvt Ltd, Chhindwara
► Madhya Bharat Agro Products Ltd, Sagar
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The demand for General and Auto engineering in the key catchment districts of Bhopal are as follows:
Table 8: Sector wise table spread of MSMEs in key catchment District
Distance General Metal Electrical Wood, Rubber, Repairing

District from Engineering Based and Plastic, Mineral and Grand
proposed Units Units Electronics based units Servicing Total
TC (Kms)
Bhopal 0 626 90 22 920 1472 3,130
Chhindwara 280 05 62 - 69 22 158
Sagar 168 107 118 03 829 509 1,566
Vidisha 55 2480 827 - 578 1820 5,705
Shajapur 200 150 698 - 870 1530 3,248
Ujjain 190 - 216 - 440 202 858
Indore 194 101 430 106 500 920 2,057
Total 3,521 2,525 155 4,457 7,509 18,167
Source: DIP Data, Ministry of MSME
Core Industrial Districts in the catchment area of the Bhopal district include Raisen, Sagar,
Chhindwara, Vidisha, Shajapur, Ujjain, Indore will be expecting to get most out of the new proposed
TC in Bhopal. Key Highlights of the Catchment Area have been presented in the table below:
Page 68 of 242
Table 9: Catchment Area Profile
District (total Units in General and Auto

District Profile Key highlights
MSMEs) Engineering
► There are 4 Industrial areas in

► Bhopal district have more
► Bhopal District have the
the district namely
than 3000 MSMEs in
capital of the state.
Govindpura, Kaliparad, Press
general and Auto
Complex, Bandikhedi.
Engineering sectors apart ► In terms of Infrastructure,
from other sectors. Bhopal offers a well-planned
► There are 3 on-going projects
road network, a strong railway
namely Industrial area of
► In the district of Bhopal,
network for convenient inter-
Bagroda, MSME Acharpura,
Govindpura Industrial
state transport, a well-
and Special Education Zone
Cluster is a General
equipped Raja Bhoj airport to
Acharpura.
Bhopal Engineering Cluster
support regular flights to and
(10,889) majoring in fabrication
► Existing clusters of MSMEs in from major Indian cities such
and machining with the
the district mainly as Delhi, Mumbai, Indore,
turnover of around INR
concentrate on Ahmedabad, Raipur and
2500 crore and providing
manufacturing of Engineering Hyderabad.
direct employment to
Products, Fabrication and
around 20,000 people. ► Tooling requirement arises
Machining. There is a good
majorly from the engineering
amount of manufacturing in
units in the district.
Electrical machinery, and
Wood, rubber, plastic based
manufacturing.
► Mandideep Industrial Area

► Mandideep Industrial Area ► Mandideep Industrial area
is the major Growth center
contributes more than is 25 Kms just south of
for both district and the
6500 crore of Industrial Bhopal. It is capitalising on
state.
Production, Rs. 1700 the proximity to Bhopal.
► Mandideep has more than crore of Export and more

► General Engineering and
Mandideep- 600 factories. Some of the than 45000 number of
Tooling requirement arises
Raisen (751) largest names of Indian employment.
majorly from the large
industry have their units in
► Mandideep houses more OEMs and tier 1 players in
Mandideep.
than 400 industrial units the district.
► A Plastic park is set to open belonging to reputed
in the district of Raisen. companies including that ► The industrial area boasts
of Proctor and Gamble, of an export turnover of Rs
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MSMEs) Engineering
HEG, LUPIN Laboratories, 1,700 crore and revenue of

TAFE Tractors, Godrej Rs 1,400 crore in form of
Foods, Insulator and central excise, commercial
Electrical etc. It boasts of tax, income-tax, property
a total investment of Rs tax, etc.
4,000 crore.
► There are 3 industrial area in ► Vidisha District have 8688 ► The district of Vidisha is
the district namely, Vidisha, registered industrial units located close to the state
Kurwai, Kampana. with 17886 number of capital Bhopal and has seen
employment. substantial investment in
► There is one on-going project
industry over the years.
named Industrial Area, ► The industries in Vidisha
Jambar Bagri, Distt. Vidisha. boost a total investment of ► General Engineering and
Rs. 81.63 crore. tooling requirement arises
Vidisha ► The Industrial sector in the
because of a significant
(8,688) district mainly concentrate on
demand in the Engineering
manufacturing of Engineering
unit production, Metal based
Products, Metal based
fabrication, and repairing
Fabrication and Machining.
sector.
There is a good amount of
manufacturing in Wood and
chemical based
manufacturing.
► Ordinance Factories are the ► Jabalpur have 19,610

► In addition to the ordnance
main employer and registered industrial units
factories, army formations
contributors to Jabalpur’s with 54,597 number of
and organisations include
economy. Vehicle Factory, employment.
HQ Madhya Bharat Area,
Jabalpur Grey Iron Foundry, Gun
the Jammu & Kashmir Rifles
► Major industries in
(19,610) Carriage Factory and
Regimental Centre, the
Jabalpur are garment
ordinance Factory Khamaria
Grenadiers Regimental
manufacturing, IT,
are the main manufacturer
Centre, 1 Signal Training
education, electrical
Centre, College of Material
► There are 5 industrial areas in goods, limestone
Management, Central
the district namely, Adhartal, products, building
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MSMEs) Engineering
Ricchai, Lemagarden in materials, glassware, Ordnance Depot, 506 Army

Gohalpur, Hargarh, Umaria- telephone parts, Base Workshop, Military
Dungaria. furniture, foodstuffs, Hospital, HQ Chief Engineer
steel structures, cement, Jabalpur Zone, Military
► The industrial sector mainly
tobacco products, Dairy Farm and HQ
concentrate on Steel and
industrial-safety goods, Recruiting Zone.
other metal fabrications,
mechanical engineering
Ready-Made Garments and
and cinema.
Embroidery, Mineral based
industries. ► The industries boost a
total investment of Rs.
545.32 crore.
► The district of Shajapur is

► There are 7 Industrial Areas ► Shajapur have 12.129
located 157 Kms away from
namely Gadroli, Shujalpur, registered industrial units
the state capital Bhopal and
Agar, Londiya, semi-urban with 28,919 number of
has seen substantial
industrial estate-shajapur. employment.
investment in industry over
► The industrial sector mainly ► The industries in Shajapur the years.

Shajapur
concentrate on Metal based boost a total investment of
(12,129) ► Tooling requirement arises
fabrication, wood based Rs. 42.37 crore.
because of a significant
manufacturing, repairing and
demand in the Metal based
servicing, ready-made
fabrication, and repairing
garments and embroidery.
sector.
► There are 7 industrial area ► The district of Chhindwara is

namely Emlikhera, Sukul ► Chhindwara have 6209 located 280 Kms away from
Dhana, Pandurna, khajari, registered industrial units the state capital Bhopal and
Chhindwara Kalamgaon, Food park- with 24439 number of has seen substantial
(6209) Bargaon, Idustrial Growth employment. investment in industry over
Centre- Bargaon. the years.
► The industries in
► The industrial sector mainly Chhindwara boost a total ► Tooling requirement arises
concentrate on Metal Based because of a significant
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MSMEs) Engineering
fabrications, Agro based investment of Rs. 114.47 demand in the Metal based
production. Crore. fabrication.
► There are 8 industrial areas ► The district of Sagar is located

namely Subhash nagar, Semi- 168 Kms away from the state
urban industrial area in Bina, capital Bhopal and has seen
Rural Work Shed in Rehli, substantial investment in
► Sagar have 12,886
Soirai in banda, Chhevla in industry over the years.
registered industrial units
Deori, Karampur in Khurai,
with 30,886 number of ► Tooling requirement arises
Dalpatpur raiyatwari in
employment. because of a significant
khurai, Belai in Bina.
demand in the General
Sagar ► The industries in Sagar
► The industrial sector mainly Engineering units
(12,886) boost a total investment of
concentrates on manufacturing and Metal
Rs. 54.45 Crore.
manufacturing of Engineering based fabrication.
units, metal based
fabrications, mineral based
industries. Repairing and
servicing and agro based
industries.
► There are 8 Industrial Areas ► Ujjain have 12,276
namely Maxi road, dewas registered industrial units ► The district of Ujjain is located
road, Nal khedi, Bandaka, with 11,054 number of 190 Kms away from the state
Mahidpur, Badanagar, Nagda, employment. capital Bhopal and has seen
Padliyakala. substantial investment in

Ujjain ► The industries in Sagar
industry over the years.
(12,276) boost a total investment of
Rs. 304.79 Crore. ► Tooling requirement arises
► The industrial sector mainly because of a significant
concentrates on demand in the General
manufacturing of paper and Engineering units
paper products, Metal based
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MSMEs) Engineering
fabrication, Repairing and manufacturing and Metal

Servicing, wood based based fabrication.
production and agro based
production.
► Pithampur industrial area is

► Indore is a commercial ► Indore is going through a
one of the largest hubs of
center for goods and high Information
vehicle and automobile
services. Indore had GDP of Technology growth. IT
industries in India.
$14,000,000,000 as of majors like TCS and Infosys
Prominent big auto
2011. The city also hosts a have made their entry in the
aompanies are Force
Global Investors' Summit city, making a remarkable
Motors, Volvo Eicher
which attract investors betterment in employment
commercial, Avtec,
from several countries. opportunities and Lifestyle.
Mahindra 2 wheelers Ltd,
Kinetic Honda, Bajaj Tempo, ► Airport Development
► Major industrial areas
Bridgestone, Hindustan Authority is developing full-
surrounding the city
Motors fledged air cargo facility at
include Pithampur (phase
I,II,III - alone host 1500 Indore Airport. At present
► Pithampura industrial area
Large, Medium and Small the total volume of air cargo
also houses many
Indore Industrial Set-up), Indore handled by CONCOR is
production plants of various
(14,075) Special Economic Zone, nearly by 3000 tons per
Pharmaceutical companies
Sanwer Industrial belt, annum. An international
like Ipca Laboratories, Cipla,
LaxmiBai Nagar IA, Rau IA, airport at Indore is expected
Lupin, Glenmark, Unichem.
Bhagirathpura IA, Kali to complete very soon.
Billod IA, Ranmal Billod IA, ► Indore have 14,075

► The district of Indore is
Shivaji nagar Bhindikho IA, registered industrial units
located 194 Kms away from
Hatod IA, IT Parks - Crystal with 56,601 number of
the state capital Bhopal and
IT Park, IT Park employment.
has seen substantial
Pardeshipura, Electronic
► There is a brownfield investment in industry over
Complex, Individual SEZ
Technology Centre in Indore the years.
such as TCS SEZ, Infosys
named Indo-German Tool
SEZ, Impetus SEZ, etc., ► Tooling requirement arises
Room. It provide production
Diamond Park, Gems and because of a significant
services in Design and
Jewellery Park, Food Park, demand in the Automobile,
Manufacturing of Press Tool,
Apparel Park, Namkeen General Engineering units
Moulds, Die Casting, Jigs,
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MSMEs) Engineering
Cluster and Pharma Fixtures and Gauges. It has manufacturing and Metal
Cluster. also helped pharmaceutical based fabrication.
companies by facilitating
► The industrial sector mainly ► Pune-based Indian
packaging of liquid
concentrates on multinational Bharat Forge
medicine. The Indore TC also
Automobile, Ready-made Limited (BFL) Company
conduct recognised Long,
garments and embroidery, eyeing customers based in
Medium as well as short term
Cotton textile, Chemical Pithampur, is all set to open
Technical training courses
based manufacturing, its unit in Indore region. The
for all type of industries.
Rubber Plastic and petro company plans to start first
based manufacturing, phase of its manufacturing
Paper and paper based unit in Betma with an
manufacturing, Metal estimated cost of Rs. 150
based fabrication, Mineral crore on 68 acre of land.
based manufacturing, They envisage to increase
Leather based the investment to Rs. 1000
manufacturing, crore by 2016
Engineering Units,
manufacturing of Electrical
Machinery and transport
equipment, Repairing and
Servicing.
Market in other potential sectors in catchment area

Going forward, in addition to the MSMEs in existing sectors (auto, fasteners, general engineering
etc.), Bhopal TC can also focus on plastic, Food processing, chemicals etc. Typical opportunities for
TC within the catchment in existing and new sectors would be amplified due to existing and proposed
major projects in the area like;
a) Plastic Park: A plastic park of 138 acres is being setup at Tamot in Raisen District. It is just
40 Kms away from Bhopal. This park will give an exclusive infrastructure for Polymer based
Industries. About 150 industrial units will be set up in the park giving jobs to about 25
thousand persons directly and indirectly.
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Figure 16: Plastic Park, Tamot
b) Food Processing Clusters: Food processing has developed as one of the key sectors in the
state as agro and allied activities contribute over 20% of GSDP. There are currently 6 food
parks, spread over more than 200 hectares of land and 185 industrial areas for food
processing in the state. Major anchor units of the sector operating in the state are Godrej,
Dabur, Coca-Cola, and Cadbury etc. State contributes 40% of organic farm produce of the
country.
Figure 17: Food Processing Clusters in Madhya Pradesh
c) Defence: The defence cluster of Madhya Pradesh is located at Jabalpur and Itarsi. Main
anchor units present in the cluster are Gun Carriage Factory, Grey Iron Foundry, Vehicle
Factory, Ordinance Factory, Telecom Factory etc. There are 45 industrial units in this
defence cluster but only few are catering to the anchor units. Main products produced in this
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cluster are Chassis, Vehicle body, Gear boxes, Thrasher etc. There are total 6 Ordnance
Factories in Madhya Pradesh.
Figure 18: Defense Clusters in Madhya Pradesh
The Government of India has announced a defence production policy which encourages joint
ventures between Indian private sector and foreign companies with foreign direct investment
of up to 49%. In view of the high presence of public enterprises in and around Katni, Itarsi &
Jabalpur and the potential for involvement of private sector units in these and other areas
of MP, in consonance with the Government of India policy, the State Government of Madhya
Pradesh has developed this policy to boost investments in defence production sector in the
state.
d) Pharmaceutical Cluster: The pharmaceutical sector is spread at Bhopal, Dewas, Ujjain, Dhar
and Pithampur - Indore. It is housing around 300 manufacturing units of the pharmaceutical
sector and providing Employment to around 20,000 personnel. Cipla, Novartis, Ranbaxy
Limited, IPCA, Lupin are the major anchor units of the sector in state.
The Pharmaceutical industry in Madhya Pradesh has an annual turnover of about USD 1.5
billion. It provides direct and indirect employment to more than 45,000 people
Figure 19: Pharmaceutical Cluster in Madhya Pradesh
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Market outside catchment area

a) Diamond extraction: A large group of diamond deposits extends North-East on a branch of the
Vindhya Range, and is known as the Panna group. Mines are situated in the interior of Panna
district. Diamond mines in Panna are managed under the Diamond Mining Project of National
Mineral Development Corporation (NMDC Ltd) of Government of India. In other mines the land is
leased to prospective miners by the government agency. The diamonds unearthed are all
collected by the district administration of Panna and are auctioned.
Figure 20: Market outside Catchment Area.
b) Industrial Area: Madhya Pradesh Audyogik Kendra Vikas Nigam (MPAKVN) have 5 centres
namely at Bhopal, Indore, Rewa, Jabalpur and Sagar. Each of these Centres have Industrial
Areas, Industrial parks, SEZs, Industrial Corridors etc. under them. In the above figure you can
see different Industrial areas under MPAKVN which are outside the Bhopal TC catchment area.
c) Food Park: Madhya Pradesh have highest agricultural growth (averaging 20%) in the country, for
the last three years. It is the leading domestic producer of agricultural resources like Gram,
Soybean, Pulses, Wheat, Onion and Green Peas. With the presence of 6 government owned
modern food parks and 2 private food parks, Madhya Pradesh provides plug and play facility for
food processing companies. There are many Key food processing players operating in the state
includes Coca-Cola, Pepsico, Parle Agro, LT foods, Cadbury, Ruchi Group, Britannia Industries
and Balaji Wafers.
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Opportunities associated with other proposed mega projects in Madhya

Pradesh
Following are some additional upcoming mega projects planned in the near future in Madhya Pradesh.
► Industrial Area at Bagroda, Bhopal: It will be a multi-product industrial area near the capital.
Its close vicinity to Bhopal makes it attractive for the industrial setup. The industrial area will
have a total area of 130.06 Acres. One of the perks of this area will guaranteed availability of
cheap labour.
► Indore Bhopal Industrial Corridor: It is in progress, will hugely benefit both the big industrial
cities of Madhya Pradesh. It is a step forward in the state’s transition from agrarian economy
towards a path of industrial development.
► Bhopal Bina Industrial Corridor: Bhopal-Bina is a 136 km long investment corridor having an
influence region spread over four districts covering an area of 2600 sqkm. The industrial corridor
will be covering Bhopal-Vidisha-Ganj basoda-Kurwai-Bina area. The strength of the corridor lies
in its central location. Bhopal has a mature industrial and infrastructure base. In Bina, on the
other hand industrial activity as yet only centres on Bharat Oman Refineries Limited (BORL) and
there is great scope for such development. The corridor passes through Sanchi and Vidisha which
have two world heritage sites- Sanchi Stupa and Udaygiri Caves respectively. It has a strong
agricultural base which can be further enhanced by better infrastructure facilities.
► World’s Biggest Solar Power Station: The world's biggest 750 megawatt (mw) solar power
station will come up in Rewa district's Gudh area, Madhya Pradesh. The state already have Asia’s
largest solar power plant of 135 MW at Neemuch.
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Social and
Environmental
Safeguards
Page 79 of 242
6. Social and Environmental Safeguards.
6.1 Socio-economic profile of district
► Composition of workforce: The sectorial composition of the workforce in the district of Bhopal
has been 5.47% in primary sector, 25.02% in the secondary sector and 69.51% in the tertiary
sector during year 2011-12.
► Sector composition: Bhopal has a Gross District Domestic Product (GDDP)19 of INR 9160 crore
which amounts to 5.67% of the Total State GDP. The per capita income of Bhopal for 2012 – 13
was valued at INR 49,979; which is higher than the state per capita income of INR 25,46320.
Growth of district GDP of Bhopal

10000 9160
9000 8032
8000 7044
District GDP (INR Crores)
7000 6462
5805
6000 5101
5000
4000
3000
2000
1000
0
2002-03 2003-04 2004-05 2005-06 2006-07 2007-08
Years
Figure 21: Growth of District GDP of Bhopal21
Primary Sector: The total land under cultivation is 277,200 hectare (2010-2011) and 35,695
hectare (2010-2011) of the agricultural land is not being cultivated. The land use for agriculture is
more or less optimum due to the availability of plenty of water in the region. The major crops and
vegetables are Soya beans, wheat, chickpea, Maize, Sorghum, Tomato, Coriander, and Tomato. The
average land holding in the District is large; with 20% of the farmers holding land between 1-2
hectares, which has led to mechanized farming and also introduction of innovative farming
techniques like poly houses floriculture and herb farming.
19 Statistical Diary, Government of Madhya Pradesh

20 http://planningcommission.nic.in/plans/stateplan/present/madhyapradesh.pdf
21
Reference: http://planningcommission.nic.in/plans/stateplan/present/madhyapradesh.pdf
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► Education: Bhopal’s literacy rate is 82.3%, significantly higher than that of the rest of the
country. At the Intermediate college level, courses are available in the area of science, arts
and commerce. The famous colleges in the region include Maulana Azad National Institute of
Technology (MANIT), Indian Institute of Science Education and Research (IISER), National
Institute of Fashion Technology, Bhopal (NIFT Bhopal) etc. The following table gives
information regarding the number of educational institutions present in Bhopal district during
2010-11;
Table 10: Educational Institutions in the District (2010 – 2011)22
Education Number
Primary schools 1108
Middle Schools 1295
Secondary / senior secondary schools 575
Colleges 106
Technical Universities 2
► Health: The status of health delivery system in the Bhopal has been widely appreciated. The
following table gives an overview of health infrastructure in the district during 2010-11:
Table 11: Health Infrastructure in Bhopal District23
SN Type Numbers
1. Allopathic hospitals 41
2. Beds in allopathic hospitals 568
3. Ayurvedic hospitals 10
4. Beds in ayurvedic hospitals 0
5. Community health centres 9
6. Primary health Centres 27
7. Sub health centres 63
8. Private hospitals 96
22
Bhopal District Profile, Ministry of MSME
23
Bhopal District Profile, Ministry of MSME
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6.2 Social and environmental screening
Environmental and social screening enables the envisaged risks to be addressed at the very beginning
of designing and conceptualizing the implementation of the expansion or the green-field
development. The two main objectives of environmental and social screening are to:
► Enhance the environmental and social sustainability of a proposed project. This aspect of
screening focuses on the environmental and social benefits of a project.
► Identify and manage environmental and social risks that could be associated with a proposed
project. This aspect of screening focuses on the possible environmental and social costs of an
intervention and may point to the need for environmental and social review and management.
6.2.1 Social screening
As per World Bank guidelines TCSP has a two-tier approach24 to Social Screening Process (SSP) as
defined by World Bank which is as follows;
► No Social Screening Process (NSSP) is applicable if,

 Expansion/modernization of an existing TC takes place within its existing complex/campus
and/or within an established and operational sites such industrial estates, industrial parks,
export promotion zones etc.
 New TC is to be established within established and operational sites such as industrial estates,
industrial parks, export promotion zones etc.
► Full Social Screening Process (FSSP) is applicable if a new TC is to be established on land

acquired from private title holders and/or on Government land under different tenure systems
provided by the Government to establish a new Centre
► Indigenous People’s Social Screening Process (IPSSP) will be undertaken

 If a new TC is to be established in an area with high indigenous population comprising tribal
populace and
 If the area is covered by Govt. Policies and Plans such as Tribal Sub Plans and Panchayati Raj
Extension to Scheduled Areas
Further, Resettlement Policy Framework (RPF) applies to all components of Technology Centre
Systems Program that requires acquisition of private land and transfer of Government/public land
and that are likely to have adverse social impact including involuntary resettlement.
24
As per TCSP Environmental management framework - Draft (9 December 2013), MoMSME
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In context of Bhopal TC;
► The identified site for the proposed TC at Bhopal;
 Land has been allocated by the State Government to O/o DC-MSME for the development
of the TC by O/o DC-MSME.
 Declaration has been received from the state government to go ahead with the TC
development.
 Clearances received from the department for being free from any kind of
encumbrances and squatter settlements. Further site visit by PMU consultants has
resulted the same verification (Non-Incumbency certificate in respect of land is
attached in Annexure).
► The allocated site for the proposed new TC at Bhopal is in an SEZ area industrial area. So,
FSSP would not be applicable as ‘the land for the establishment of the TC is not acquired from
any private title holders and/or on Government land under different tenure systems’.
► Hence, in this case NSSP will be applicable since the new TC is to be established within an
established and operational site of the industrial estate.
Also, the proposed location of the TC is not established in an area with high indigenous
population comprising tribal populace and the area is not even covered by any Govt. Policies
and Plans such as Tribal Sub Plans and Panchayati Raj Extension to Scheduled Areas. Hence,
this rules out the undertaking of IPSSP.
The responsibilities related to social management will ultimately reside with the respective TC. The
PMU will facilitate, support the implementation of the Social Management Plans and prepare a six-
monthly report on all aspects of Resettlement Policy Framework and Process.
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6.2.2 Environmental screening

Environmental safeguards are an integral component of the TCSP project. TCs are like mini
industries; hence planning, development and management of the TCs involve several critical
environmental, health and safety obligations. Incorporation of best environmental practices and
processes are an integral part of any expansion or development of any green-field TC. The
Environmental Management Framework (“EMF”) of the project outlines and details of the
environmental aspects to be considered in each phase of the project.
The foremost and most essential stage of environment management is to conduct an

environmental screening. The primary objective of the environmental screening is to identify the
environmental issues, concerns and environmental risks associated with the use(s) of the Site.
Environmental screening enables the envisaged risks to be addressed at the very beginning of
designing and conceptualizing the implementation of the expansion or the green-field
development. Further, the screening analyses the environmental setting, surrounding land use,
historical land use and related issues concerning the respective environmental context. As a
consequence, the outcome of the screening process will be categorization of the project into one
or more of the following categories:
► No further action is needed, either because no significant environmental impact and risks
were identified, or because sufficient environmental review has already been conducted
and environmental management recommendations have been incorporated into the
project;
► Environmental sustainability elements need to be integrated into project design because
there are possible environmental and social benefits, impact, and/or risks associated with
the project (or a project component) but these are limited in nature, predominantly
indirect or very long-term and so extremely difficult or impossible to directly identify and
assess; and
► Further environmental and social review and management is needed because potential
environmental and social impact or risks are associated with the project (or a project
component) and it is possible to identify these with a reasonable degree of certainty. In
some cases, determining the significance of these impact or risks will require
environmental and social assessment which, in turn, will lead to the identification of
specific environmental and social management measures that need to be incorporated
into the project.
As a requirement Initial Environment Screening is conducted at all these sites to ascertain the
potential environment impact of these developments, if any. Based on the observations,
appropriate measures shall be planned in the Environment Management Plan (EMP) of the
proposed Site.
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The methodology for environment screening includes desk study, site visit, interview with relevant
stakeholders and study of available literature and analysis of data/information.
► Desk study involves collection and review of the secondary data available in the public
domain. This may involve analysing the geo-physical location and seismic activity of the
site historical aerial photographs (Google Earth), soil type, land use pattern and readily
available historical information; and
► Site visit/s is/are conducted to collect first hand data/information about the new/existing
site. Physical assessment and verification of the site features, topography, existing
structures etc. and other major environmental observation to evaluate any possible
environmental impact. Interviews are conducted with relevant stakeholders including the
site officials for understanding site specific information. The field visit helps to confirm
the observations made through secondary data review and identification of additional
environmental concerns (if any). Following aspects are analysed and assessed during
environmental assessment:
o Associated change in land use pattern

o Level of land clearance associated with the development
o Protected area/ Biodiversity sensitive area in the vicinity
o Cultural heritage in the vicinity of the site
o Indigenous people in and around the site
o Effect on surrounding features due to construction/operations
o Water source available at site for operations and envisaging the additional
pressure on water sources
o Sources of air/ noise emissions on the site and associated concerns
o Concerns associated with use of chemicals, handling, storage and disposal of
hazardous waste on site
o Risk of natural calamities on site
To assess the potential environment impact of TCSP, the sites were visited and stakeholders were
consulted to gather the relevant information. Stakeholders including MSME officials,
representatives of industrial development and other Government officials were consulted during
the site visit. Based on this preliminary review, the potential environment impacts of envisaged
expansion/new TRTCs were gauged as per the current scenario and anticipated activities during
construction and operation phase of the TRTCs.
Site description and environmental setting

The Site is located within Acharpura Industrial Area. The Site has a relatively flat terrain (highest
site elevation 517 m in the northern portion of the Site and sloping towards south) and was vacant
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during the Site visit. The Site primarily had basaltic rocks overlain by a thin layer black soil. No
structures were observed on the Site during the visit. Based on the discussion with the Site. As
per the discussion with the Site Representatives, the Site was historically an unused land and has
remained vacant throughout. The Site is within the Acharpura Industrial Area of Bhopal. The land
use type of the vicinity area was predominantly vacant during the Site visit. The project does not
involve land acquisition from private players. The Site is owned by Government of Madhya Pradesh
and has been allocated to MSME.
As per the Site representatives, ground water will be used for the operations within the industrial
area. As per the District Groundwater Information Booklet, 2013 the ground water level ranges
between 5-18 meter below ground level (bgl). Considering that the operations are not water
intensive, additional water requirement is not envisaged to put additional pressure on the water
sources. Plans are being made for linking the area with the Narmada pipe line system in future
which is sourced from Harali dam in Bhopal. No sources of air emissions, noise were identified on
the site. The site did not involve handling hazardous waste or chemicals. No biological sensitive
area, cultural heritage structure were observed in the vicinity of the Site. There are no records of
natural calamity in the region. Construction and operation of the Tool room is not envisaged to
have any impact of the surrounding area.
The initial environmental screening was conducted to identify the environmental issues, concerns
and environmental risks associated with the use(s) of the Site. Further, the screening analyses the
environmental setting, surrounding land use, historical land use and related issues concerning the
respective environmental context. EY conducted a site visit during the study phase and held
discussions with Site Representatives. During the study phase the team conducted a site visit and
held discussions with Site Representatives. Based on the discussion, the checklist used to conduct
environment screening at the selected site is given below:
Table 12: Checklist for environmental screening
SN Issues Yes/No Remarks

1 Will the expansion or new No The allotted land is in a designated industrial
tool room affect the land use area earmarked for industrial operations
pattern?
2 Will the development include No The land is clear from vegetation and there
significant land disturbance are no trees.
or site clearance?
3 Will the project involve No The land has been allotted to MSME and is
acquisition of land from an earmarked industrial zone. Therefore,
private players? does not involve acquisition of land from
private players.
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4 The selected site is defined Yes Industrial zone

as industrial / commercial /
residential?
5 Is there any protected area No No biodiversity sensitive areas are present
or biodiversity sensitive area near the site.
in the vicinity which is likely
to be affected by the
operations of the tool room?
6 Is there any archaeological No There is no archaeological or
or cultural/heritage cultural/heritage structure in the vicinity of
structure in the vicinity of the site.
the site?
7 Is there any group of Yes There are no indigenous people in and
indigenous people in and around the selected site.
around the selected site?
8 Will the construction activity Yes The construction and operation of the Tool
affect the surrounding room is not envisaged to have any impact of
around the tool room? the surrounding area.
9 What is the source of water No As per the Site representatives, ground
available at the site (Ground water will be used for the operations within
water, surface water, the industrial area. As per the District
municipal supply, etc.)? Is Groundwater Information Booklet, 2013 the
the water requirement ground water level ranges between 5-18
envisaged to put additional meter below ground level (bgl). Considering
pressure on the water that the operations are not water intensive,
sources? additional water requirement is not
envisaged to put additional pressure on the
water sources.
Plans are being made for linking the area

with the Narmada pipe line system in future
which is sourced from Harali dam in Bhopal.
10 Were any sources of air Yes No sources of air emission were observed
emissions observed on the during the site visit.
Site?
11 Were any sources of noise No No sources of noise were observed on the
identified on the Site? site.
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12 Were any chemicals used on No No chemicals were being used on the Site
or in the vicinity of the Site? during the Site visit.
13 Does the Site involve No As the Site did not involve any operations,
handling, storage and no chemicals were handled on the Site.
disposal of hazardous
waste? If yes, what are the
different types of waste
envisaged from the TC?
14 Is the project located in the No The TC location falls in the Seismic zone - II
area of seismic faults? In and these may be designed to be capable of
case yes, in which seismic handling an earthquake in case there is one
does the location lie? in the future.
15 Is there any record of natural No There is no record of natural calamity in the
calamity in the area in the region.
past? If yes, what is the
probability of the same
effecting the operations of
TC in the future?
Based on the discussions with the Site representative and site visit conducted, no evident
environmental concerns were identified on/ near the Site. However, it is advised that water
conservation methods are planned to be executed for the Site considering its reliance on ground
water resource for operations.
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6.3 Gender equity and social inclusion strategy
Gender, Equity and Social Inclusion Plan (GESIP) is an important aspect of the social management
framework. TCSP also aims to create more choices for young people entering labour force (including
women and those who belong to vulnerable sections of society) in terms of providing opportunities
for hands-on-technical skills development at varying levels and types through TCs. This is in
accordance with Government of India’s focus on inclusive growth focusing on poverty reduction and
group equality and also with World Bank’s Country Partnership Strategy with emphasis on
engagement, transformation and inclusion.
GESIP will be formulated for the proposed Bhopal TC, during its operational phase which would not
only be an outcome of the participatory process but also be rooted in the national and state policies
for gender and social inclusion. Areas to be considered while preparing GESIP will also be in line with
the RFD of the programme and would comprise the following (but not limited to):
► Criteria for admission into vocational education and training for skills development
► Increased opportunities for employment to women trainees
► Timings of training
► Ease of Location of TC
► User friendly campus infrastructure esp. for differently abled sections
► No. of women rest rooms
► Training Aids and infrastructure
► Any other component
The PMU will prepare and monitor the strategy to help with the preparation and implementation of a
GESIP with particular emphasis on inclusion of young women as well as those who belong to weaker
and underprivileged sections of society. For example, those who belong to SC/STs, backward castes,
minorities and those who are differently abled. Good practices coming out of the GESIP will be
documented and replicated/scaled up further in new TCs.
GESIP Strategy roadmap (Suggestive)
► Develop a module/ guidance notes for preparing TC specific GESIPs covering the following
aspects:
 Gender gaps
 Importance of gender
 Identification of gender specific issues and constraints that hinder the implementation
of GESIP (human capital, access to information, access to finance, institutional
factors, socio-cultural norms, structural factors, political/ legal)
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 Use of gender-disaggregated data to analyse the business environment

 Identify communication channels to reach intended program beneficiaries
 Useful links and tools
 Case studies/ best practices
 Core questions and indicators
► Capacity building of TC focal points identified to work on GESIP. Analysis of existing pool
of potential trainees and their eligibility in terms of gender and social inclusion and in terms
of eligibility criteria as set out in national and State policies
► Hand holding support for planning and implementing GESIP
► Setting up institutional arrangements at TC level for transparent and accountable

implementation and monitoring of GESIP based, among others, on specific and measurable
indicators. Develop reporting and monitoring formats to assess progress every 6 months
► Organize and facilitate monthly meetings (for 6 months) for GESIP coordinators to identify
issues and best practices and synthesize learning’s’ within and across sectors
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6.4 Sample monitoring and reporting template
The monitoring of environmental parameters would be undertaken on quarterly basis. The

responsibility of the same would lie with the concerned TC and a copy of the consolidated
performance will be sent to the O/o DC MSME for their records and recommendations. The suggestive
template for monitoring and reporting for the same to be adopted by the TC’s is given below. Further,
during operation and maintenance of the TC, a number of potential EHS impact may be expected
based on the kind of activities undertaken. These possible aspects are delineated in the EHS section
of this DPR.
Table 13: Sample monitoring and reporting template
Frequency of monitoring and

SN Parameter
reporting
1 Water consumption Quarterly
2 Water Cess Report Quarterly
3 Energy consumption Quarterly
4 Waste generation and disposal Quarterly
- Municipal Solid Waste
- Hazardous waste
- Non-hazardous waste
- Other categories
5 Safety records Quarterly
Near Misses
First Aid cases
6 Training Quarterly
No of students and other trained
7 Air pollution and Noise pollution 6-monthly
8 Internal audit report Quarterly
9 Update of legal register 6-monthly
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Regulatory Approvals
required
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7. Clearances required and respective authorities
The proposed TC at Bhopal is one of the Greenfield projects proposed under TCSP. This would include
development of physical infrastructure including facilities like production, training, administration,
hostel, canteen, utilities etc. keeping in view the long-term sustainability. The same would require
clearances at different levels during construction such as approval of layout plan, environmental
clearance, electricity and water supply connection, health and safety clearance and other associated
clearances. Obtaining these clearances would be crucial for timely completion of the project and
therefore needs to be planned well in advance. The following table gives indicative details of the
various clearances along with the respective approving authorities and the tentative time required.
However, considering that land has already been allotted to O/o DC-MSME for development of TC,
some of these regulations may not be applicable.
Table 14: Clearances required and respective authorities
Required
Tentative time limit for approval
S. No clearance/ Department /agency
(days)
approvals25
Registration under Commercial Taxes
1. 24 hours
VAT Act Department
Registration under Commercial Taxes

2. 24 hours
CST Act Department
Tax Clearance Commercial Taxes 1 day in case of non-default of tax

3.
Certificate Department payment
Land conversion -
30 days for up to 10 hectares
4. Conversion of land Revenue Department
60 days for above 10 hectares
use
30 days if allotment is to be made at

the District Level
5. Land Allotment Revenue Department
60 days in case Government's
approval is required
Allotment of plots in MPTRAFIC/ State

6. 30 days
Industrial Areas department
25
Indicative list of clearances/ approvals
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Required
(days)
approvals25
Issue of NOC to the MPTRAFIC/ State
authority concerned department
7. regarding 15 days
conversion of land
use
Site/environment clearance: 90
Environmental days,
Ministry of
Clearance (Consent
8. Environment and NOC to establish: 45 days,
of Air and Water
Forests
Pollution) NOC to operate: 30 days, Renewal of
consent: 30 days
Loads up to 60 HP: 66 days, Loads

above 60 HP and up to 300 KW: 90
days,
Electricity MPTRAFIC/ State
9. Loads above 300 HP and up to 3000
Connection department
KW: 180 days,
Load above 3000 KW and up to

33KV: 375 days
MPTRAFIC / State
10. Water connection NA
department
MPTRAFIC / State
11. Fire safety NA
department
Approval of place
and for permission
MPTRAFIC / State
12. to construct NA
department
building under the
Factories Act)
Labour and
Approval of factory Employment
13. layout plan under Department – 30 days
factories Act, 1948 Factories and Boilers
Inspectorate
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Required
(days)
approvals25
Labour and
License for running
14. Employment 45 days
the factory
Department
Registration of Labour and

shops and Employment
15. 10 days
commercial Department - Labour
establishments Department
Permission to
establishments Labour and
having more than Employment
16. 45 days
50 labours under Department - Labour
Industrial Department
Employment
17. Lift State department NA
Central Ground Water

18. Borewell NA
Authority
Indian societies
19. Society registration NA
registration act 1860
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Manpower and
Human Resource
requirement
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8. Manpower and Human Resource development
The success of an institute or an organization majorly depends upon the skill set and experienced
human resource available with them. Hence, it’s planning, recruitment and development is one of the
most important aspects while designing a new Technology Centre. As a part of the study we have
analysed organizational structures of some of the existing Technology Centres to understand the
major functional areas, number and level of employees, contractual staff and other related aspects.
In continuation, we have also discussed the same with O/o DC-MSME and some of the heads/GMs of
the existing TRs.
As per the existing structure, there are following functional areas/streams in a TR:
► Production
► Design
► Training
► Consultancy and Marketing
► Administration and Accounting
The level of employee heading a particular Functional area/stream/department varies in some of the
TCs. In an Indo German TC Administration and Accounting is headed by a Manager while in Indo
Danish TCs this is being headed by a Senior Manager. Sanctioned employee strength in these existing
TCs typically varies from 110-120. Proposed organization structure
While analysing the existing organizational structures and designing the new one, we have taken
some considerations into account which have been discussed and validated with the O/o DC-MSME.
Some of the key considerations are as below:
► As per the decision taken in the Empowered Finance Committee, the total sanctioned strength
for any new TC would be 60 in contrary to the existing ones which have total sanctioned strength
of 110-120.
► In the proposed organizational structure for Bhopal TC, the main revenue streams are Training,
Production and Design & consultancy. These departments will be headed by Senior Managers
who would directly report to GM/DGM.
► In contrary to the existing structures and target of sanctioned employee strength of not more
than 60, we have proposed only 7 levels as compares to the existing structures which have 9
levels in the hierarchy. Below these levels, the resources will be hired as contractual employees
on need basis.
► In the existing structure consultancy and marketing department were clubbed into one, but in the
proposed structure for Bhopal TC it has been proposed to have marketing as a separate
department and consultancy be clubbed with the design department. This has been done after
having discussions with some heads/GMs of the existing MSME TCs and understanding the
customer requirements to meet the technical experts while pitching for any consulting
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assignment. Moreover, production projects’ catering to component manufacturing or tool

designing requires consulting. Most of these projects are mutually exclusive with less replicability
across designs.
► The other two departments namely, Marketing and Administration and Accounting are proposed
to be headed by Manager level position and they will directly report to GM/DGM. This has been
done as the administration and accounts department is lean and a manager level employee would
be able to manage the same. Also, as stated above, the total sanctioned strength cannot exceed
60.
► Consistent efforts will have to be made to optimize the revenue from training, production and
business advisory. With this is in mind, the design and consulting department have been
strengthened with a sanctioned strength of 7 experts which will mainly work in the areas of
Design support, Quality systems support, Product development and engineering solutions,
Project consultancy in setting up of TR, training centre and others. These experts will be
supported by internal production team and external experts on need basis.
► In contrary to the sanctioned strength (4-5 employees) in marketing department of many existing
TCs, the sanctioned employee strength in the proposed structure has been reduced to 2 only (1
Manager and 1 officer sales). This has been proposed keeping in mind that the GM or Deputy
General Manager will devote his/her significant time in marketing and sales. Also, the respective
departmental heads (Senior Managers) will be responsible for the sales and marketing efforts of
their departments. Moreover, above all TCSP aims to hire Cluster Network Manager to facilitate
all the market linkages for the proposed TC. The role of CNM for marketing would be very crucial
and it will act as an additional arm of the marketing wing of the proposed TC. Considering all the
above factors into account, a lean marketing department has been proposed for the proposed
Bhopal TC.
► The maintenance manager though will be a part of the production department but will have an
added responsibility to support the maintenance of machines in the training department as well.
He/she will be supported by 1 Senior Engineer and 2 Senior Technicians.
► Based on our discussions with the O/o DC-MSME and heads of the existing MSME TCs, there was
a need for dedicated manager for the short term trainings. In the structure for Bhopal TC, we
have proposed separate manager for mechanical, electronics and short term trainings. Keeping
in mind the scale and the number of trainees in the short term courses (both mechanical and
electronics), the manager short term would mainly be responsible for administration, planning,
quality control, issue of certificate to trainees, fee collection and others. Even one of the
managers (from mechanical and electronics) would be additionally responsible for placement of
students which will include industry interaction, managing training and placement, delivering
presentations etc.
► While estimating the numbers we have considered the following considerations:
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 The final semester trainees of Tool Design and Manufacturing course would also work with
the design and consultancy department. This will help them in getting the hands-on
experience and will also provide support the department
 In continuation to the above, even the final semester trainees of Diploma in Tool & Die
making, Post Diploma in Tool Design, Post diploma in Tool Manufacturing and CNC Machinist
would work in the production department depending upon the skill set and interest area.
 In addition to the regular employees, the training department will have the maximum
number of contractual faculty in the form of guest faculty and full time contractual faculty.
The figure for number of contractual faculty have been arrived at by taking various factors
into account namely – existing employees in training and production, the number of courses
vis-à-vis the number of trainees, trainee to teacher ratio, projected revenue numbers over
the years, number of shifts in production vis-à-vis the utilization and others. The TC will sub-
contract the assistants in the administration, accounts and stores department for providing
the support to the departmental team on day to day basis.
 The requirement of staff for the house-keeping and security will be outsourced to a third
party agency on yearly contract basis
Based on the considerations stated above, the organisational chart in figure 19 demonstrates the
target organizational structure to be achieved in 5 years (by 2021-22) from inception. Though, we
have provided the figures till 2026-27 since we are estimating the revenue and expenditures for next
10 years.
As highlighted above, the proposed Technology Centre at Bhopal will be divided into five functional
areas/departments. These are:
► Production
► Training
► Design and consultancy
► Marketing
► Admin and Accounting
It is recommended that the GM and the DGM divide these five areas/departments between them,
depending on competency, work-load and previous experience. Overall GM would be responsible for
the management and financial health of the TC.
The chart consists of 5 levels in addition to the General Manager (GM) and the Deputy General
Manager (DGM).
► The third level consists of Senior Managers as the departmental heads of design and consulting,
production and training. They will report directly to either the GM or the DGM, depending upon
the division of departments within them.
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► The fourth level will consist of Managers who will be supporting Senior Managers in their
respective domains. But for marketing and admin and accounting department, as explained
above manager will head this department and directly reporting to GM or DGM.
► The fifth level consists of senior engineers (Sr. Engg.) and Sr. Officers. Level six consists of
engineers (Engg.) and officer / foreman.
► The final level consists of senior technicians with requisite operational level expertise.
The responsibilities of each position and qualifications required to fulfil roles are covered in the
following section. Hence, the recommended final organisational structure for the proposed TC is
based on experience from established MSME Technology Centres, discussions with O/o DC-MSME and
heads of some of the existing TCs, expert opinion and knowledge and experience with organisational
planning.
Table 15: Sanctioned strength of key resources
S. No. Designation Proposed Sanctioned Strength
1. General Manager 1
2. Deputy General Manager 1
Department
3. Administration and accounting 7
4. Design and consultancy 7
5. Production 18
6. Training 22
7. Incubation Centre 2
8. Marketing 2
Total 6026
In addition to the above sanctioned strength, we have recommended additional employees as

contractual employees. Based on the requirement, we have estimated around 140 contractual
employees (128 in training & 12 in production) by end of FY 2026. The figure for number of
contractual employees have been arrived at by taking various factors into account namely – existing
employees in training and production, the number of courses vis-à-vis the number of trainees, trainee
to teacher ratio, projected revenue numbers over the years, number of shifts in production vis-à-vis
the utilization and others.
26
The details and basis of number of employees is provided in the next section
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While considering the ratio for trainee to teacher, we have used the following assumptions after
discussion with existing GMs and O/o DC-MSME.
 Trainee to teacher ratio for theory classes – 60:1; with theory classes conducted for 20% of
time
 Trainee to teacher ratio for practical classes – 20:1; with practical classes conducted for
80% of time
After calculating the weighted average of the above ratios we got the overall trainee to teacher ratio
of 28:1. Post discussions, we have considered trainee to teacher ratio of 25:1 for calculating the
number of employees in the training department (regular and contractual faculty) keeping in mind
the employees who will be on leave at any given point of time.
Figure 22: Proposed organisation structure
8.2 Phase wise induction of human resources

As discussed in the above sections, the proposed TC will have 60 employee as sanctioned strength
and the target structure will be achieved within 5 years from 2016-17. Therefore due care has been
taken during the study to phase the recruitment of employees. On the same lines, initially some
positions have been proposed to be vacant when establishing the organizational structure of the TC.
This has been proposed keeping in mind the time it will take to be fully operational. Vacant positions
will also create incentives for high performers to obtain higher positions when the time comes for
fulfilling these.
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The phase wise estimated staffing over next few years as part of human resource planning has been
done through the identification and analysis of the various types of activities and skill sets required
for smooth and efficient functioning of the proposed TC. Multiple rounds of discussions with industry
experts, World Bank, O/o DC-MSME and heads of some of the existing MSME TCs have been
undertaken to arrive at the requirement of human resources needed to meet the business objectives
in the short and long term of the proposed TC.
The following provides the details of recruitment in various phases over next few years. This phasing
is suggestive and can be modified based on the need and revenue generating capabilities of the TC
during operations. Some of the considerations which have been taken into account while
recommending the phasing of employees are as below:
► Year 2016-17: 2 staff members

 GM will be involved in project implementation and work out the strategy for marketing,
training, production and consultancy with the help of CNM and TP. GM will also monitor the
progress of construction and procurement of machines etc. GM will also be responsible for
planning of recruitment of required manpower.
 Manager – Administration & Accounts will be responsible to get statutory registrations like
sales tax and PF, opening of TC’s bank account, getting power and water connection etc.
Manger will also support GM in recruitment of people in the coming years.
► Year 2017-18: 20 staff-members

 Three senior managers will be recruited to further recruit staffs in respective departments.
These would also be responsible for orientation and training of respective staff members.
 Senior officer - administration & HR will be recruited to support the GM and manager -
administration and accounts for further recruitment of staff and forming of systems to
conduct day to day administrative activities
 The first long term training programme will commence this year and one senior engineer,
one engineer and one senior technician will be recruited for installation of machines and
conducting theory and practical training
 By second half of this year, production and design staff will be recruited. The respective
senior managers would be responsible for orientation and training of these staff members.
These staff will undergo training (preferably at another Tool room at Aurangabad and/or
Ahmedabad) for a period of 3-6 months to make them fully trained before start of the
operations of the proposed TC
 Manager - maintenance and senior technicians will be recruited to install and commission
machines for production and training. They will also be responsible for installing the power
supply system
 Stores and accounts officers will be recruited to maintain statutory records and support the
operations
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► Year 2018-19: 42 staff- member

 Production will commence during this phase and hence more engineers and senior engineers
will be recruited. The number of staff has been decided based on estimated number of
machines commissioned during this phase and number of shifts in production
 This year some short term training courses will commence along with the starting of the
second year of the long term course.
 Officer sales will be recruited to support manager marketing for preparation of detailed
marketing plan of the TC. The staff would be engaged in various marketing activities for wider
reach of the proposed TC across the region. This would be crucial for promotion of the TC
and would help departments increase their revenue
 The Design and Consultancy department has been planned to commence its commercial
services during this year and hence manager and senior engineers will be recruited to meet
the requirement.
► Year 2019-20: 52 staff members
The proposed TC would be fully operational by this period with activities in production, training,
design and consultancy etc. Additional staff will be recruited for smooth undertaking of the gradual
increase in the activities across all the departments.
It is recommended to leave the position of the DGM vacant initially. The position of the DGM can be
filled by a high performing senior manager within design and consulting, production or training
depending upon the requirement, skill set and experience.
Rest of the positions will be filled gradually as TC activity escalates and the manpower requirements
increase. The tables below summarize the phasing of the organizational completion within each area;
Administration and Accounting, Design and Consulting, Production, Training and Sales and
Marketing, in addition to the positions of the GM and DGM. The numbers represent the numbers of
employees within the specific position at a given point in time. The timeline spans from 2017 to 2026.
Table 16: Summary of phase wise induction of resources
Year 16-17 17-18 18-19 19-20 20-21 21-22 22-23 23-24 24-25 25-26 26-27
Full time employees

Total 2 20 42 52 57 60 60 60 60 60 60
Contractual employees
Total - 3 25 44 65 78 97 112 126 140 140
Below tables depicts the hiring of number resources in every department every year starting from
2016-17 to 2025-26. In the year 2021-22, the TC is recommended to hire the complete sanctioned
strength of 60 employees.
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Table 17: Department wise induction of fulltime resources

General Manager
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27

General Manager 1 1 1 1 1 1 1
Total 1 1 1 1 1 1 1
Deputy General Manager
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27
Deputy GM - - - - - 1 1
Total 0 0 0 0 0 1 1
Administration and Accounting
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27
Manager Admin.
1 1 1 1 1 1 1
and Accounting
Sr. Officer HR - - - - - 1 1
Sr. Officer
- 1 1 1 1 1 1
Accounting
Officer
- - 1 1 1 1 1
Procurement
Officer Store - 1 1 2 2 2 2
Officer Admin - 1 1 1 1 1 1
Total 1 4 5 6 6 7 7
Design and Consulting
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27
Senior manager 1 1 1 1 1 1
Manager 2 2 3 3 3
Sr. Engg. 2 3 3 3 3
Total 0 1 5 6 7 7 7
Production
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27
Senior Manager - 1 1 1 1 1 1
Manager Prod/
- - 1 2 2 2 2
Planning
Manager
- - 1 1 1 1 1
Metrology
Manager
- 1 1 1 1 1 1
Maintenance
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Sr Engg.
- - - 1 1 1 1
Maintenance
Sr Engg. Prodn - 3 3 3 3 3 3
Engg. / Foreman - 2 5 5 5 5 5
Senior Technician - 1 2 2 2 2 2
Senior Technician
Maintenance - 1 1 2 2 2 2
(Mech + Elect)
Total 0 9 15 18 18 18 18
Training
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27
Senior Manager - 1 1 1 1 1 1
Manager
- - 1 1 1 1 1
Mechanical
Manager
- - 1 1 1 1 1
Electronics
Manager Short
- - - - - 1 1
term
Sr. Engg. - 1 5 6 6 6 6
Engg. - 1 4 8 10 10 10
Senior Technician - 1 2 2 2 2 2
Total 0 4 14 19 21 22 22
Incubation Centre
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27
Manager - 1 1 1 1 1 1
Officer - - 1 1 1 1 1
Total 0 1 2 2 2 2 2
Sales and Marketing
Year 16-17 17-18 18-19 19-20 20-21 25-26 26-27
Manager Marketing - 1 1 1 1 1 1
Officer Sales - - 1 1 1 1 1
Total 0 1 2 2 2 2 2
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8.3 Roles and responsibilities
While conducting the study, we had series of discussions with the O/o DC-MSME and some heads/GMs of existing MSME TRs on the prospective roles
and responsibilities of the employees for the Bhopal TC. Below is summary of the suggestive roles and responsibilities (including the minimum
qualification levels) of the individual employees which can be referred to while recruiting .
Table 18: Roles and responsibilities of proposed positions
Profile/ Minimum Minimum

Other Skill set/ requirements Key Responsibilities
Designation Qualification Experience
► Over all responsible for the administration

and financial health of the TC
B.Tech ► Tool Manufacturing/Design/ Product ► Key responsibility areas include (but not
15 Years with 8
General (Mechanical) development/ Training. limited to); Marketing, Administration, HR,
years in similar
Manager with MBA or ► Experience in Project Implementation will Accounts, Production, Design & consultancy
role
M.Tech be preferred etc.
► Responsibility for achieving the target KPIs
set by the GC
B.Tech ► Tool Manufacturing/Design/ Product
12 Years with 5
Deputy General (Mechanical) development/Training. Head of Production, Design, Consultancy and
years in similar
Manager with MBA or ► Experience in Project Implementation will Training
role
M.Tech be preferred
Manager - CA/ICWA or 8 Years with 3

► Experience in the area of Administration, Head of Accounts, Administration and HR:
Admin. and MBA with years in similar
HR and Accounting ► General housekeeping of TC
Accounting bachelor’s role
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degree in ► The Manager must also have basic ► Bookkeeping, accounting and finance
Commerce/ knowledge of government laws, including financial analysis
Accounting / regulations and state specific compliances ► TC security
Finance ► Familiarity with ERP/accounting software ► Payroll
► Procurement management and store keeping
► Experience in the area of HR and ► Housekeeping of TC
Sr. Officer - MBA or Administration ► Security systems operation
5 Years
Admin. & HR Equivalent ► Familiarity with Industrial laws and ► Transport System and management
compliances ► Payroll
Bachelor’s
degree in
► Experience in accounting and Tax
Sr. Officer - commerce/Acco ► Bookkeeping and accounting
► Should be familiar with latest accounting
Accounting unting / Finance 5 Years ► Financial analysis
software
with M.Com. or
MBA
M. Com. or MBA ► Experience in accounting and Tax.

Officer - ► Bookkeeping and accounting
or Equivalent in 3 Years ► Should be familiar with latest accounting
Accounting ► Handling of Cash, Banking etc.
Accounting software
Diploma in ► Managing store

► Experience in Store keeping, including
Officer Store Mechanical or 3 Years ► Issue of consumable and non-consumable
inventory management
Equivalent stores and keeping records
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► Experience in Computer systems /

software for store keeping operation
► Experience in Procurement processes ► Procurement

Officer M. Com. or MBA
3 Years ► Knowledge of Govt. Procurement rules ► Vendor Development
Procurement or Equivalent
and processes will be desirable
► Experience in product modelling, design, Responsible for designing tools, moulds and die
tool design casting w.r.t.
► Proficiency in one of the areas in Tool
► New product development planning and its
Design, either Sheet metal press tool or
execution
Plastic mould
► Quality systems
Senior manager M.Tech in 10 Years with 5 ► Practical Experience in use of
► Value engineering
- Design & Mechanical years in similar CAD/CAM/CAE in product and tool design
► Tool try outs and proving
Consultancy engineering. role ► Experience of Tool trial
► Consultancy to MSMEs
► Experience of assembly and inspection of
Jigs and Fixtures
In charge of Incubation centre
► Knowledge of Quality systems
► Experience in technical consultancy will be ► Helping members of Incubation centre in
preferred getting orders and execution of the same
► Designing tools, moulds and die casting
Manager- B. Tech in 8 years with 3
► Experience in product modelling, design, ► Product development
Design & Mechanical years in a
tool design ► Quality systems
Consultancy engineering. similar role
► Value engineering
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► Proficiency in one of the areas in Tool ► Tool try outs and proving
Design, either Sheet metal press tool or ► Consultancy to MSMEs: Deliver functional
Plastic mould consulting on assigned areas to ensure
► Practical Experience in use of MSMEs are able to successfully use the
CAD/CAM/CAE in product and tool design solutions
► Knowledge of Tool trial
► Experience of Jigs and Fixtures
► Knowledge of Quality systems
► Experience in technical consultancy will be
preferred
► Experience with designing sheet metal
tools, plastic moulds or die casting ► Designing tools, moulds and die casting
► Knowledge of high end CAD software, ► Product development
Sr. Engineer- B. Tech in
analysis software and metrological ► Quality systems
Design & Mechanical 5 Years
instruments ► Value engineering
Consultancy engineering
► Experience of consultancy in the areas of ► Tool try outs and proving
product development, quality systems and ► Consultancy to MSME
value engineering
► Overall responsible for Production,
M. Tech. in 10 Years with 5 ► Experience with tooling or manufacturing
Sr. Manager production planning and control, including
Mechanical years in similar and at least 3 years of leadership
Production quality assurance of Tools and components,
Engineering role experience
Tool trials etc.
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► The Sr. Manager should have experience ► Overall responsible for relevant software
in metal or plastic mould and/or die CAD/CAM/CNC
casting ► Overall responsible for machine maintenance
► The Sr. Manager should also have hands and upkeep
on experience with CAD and CEM ► Ensuring on-time deliveries
software, and programming of CNC ► Deliver budgeted quantities as per required
machines quality standards
► Experience to debug tool, analyse ► Manpower deployment and controlling
problems, root causes & take corrective manpower costs as per target
improvement actions when tool is not able
to produce as per part specifications
► Experience with tooling or manufacturing
► Knowledge of metal or plastic mould ► Production
and/or die casting ► CAD/CAM/CNC programming and operation
► Hands on experience with CAD and CAM ► Responsible for timely delivery of tools and
B. Tech in 8 Years with 3
Manager- software, and programming of CNC components
Mechanical years in a
Production machines ► Responsible for Tool Trial
Engineering similar role
► Experience to debug tool, analyse ► Responsible for Consultancy to MSMEs
problems, root causes & take corrective ► Should have good knowledge of Quality and
improvement actions when tool is not able inspection
to produce as per part specifications
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► Preparation of stage wise / machine wise

scheduling in co-ordination with head of
► Experience in tooling or manufacturing production team
► Experience in metal or plastic mould ► Production Planning and Control, and further
Manager- B. Tech in 8 Years with 3
and/or die casting. dispatching of jobs
Production Mechanical years in a
► Experience in CAD and CAM software, and ► Estimate & manage to get raw materials and
planning Engineering similar role
programming of CNC machines component requirements
► Knowledge of ERP software ► Responsible from issue of raw materials to
dispatch of final product to customers
including routing
► Practical knowledge and experience of
B. Tech in 8 Years with 3
Manager- handling CMM and measuring Instruments Head of QC and metrology section with in
Mechanical years in a
Metrology ► Knowledge of Quality assurance and production
Engineering similar role
systems
B. Tech in
8 Years with 3
Manager- Heat Metallurgy/Mec Practical Experience in heat treatment of Head of heat treatment section and responsible
years in a
treatment (HT) hanical engineering products including tool steel for heat treatment operation
similar role
Engineering
B. Tech in 8 Years with 3 ► Knowledge of Installation and ► Head of Machinery maintenance including
Manager-
Mechanical/ years in a commissioning of machines and preventive maintenance, repair etc. of
Maintenance
Electrical/ similar role equipment machines and equipment
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Electronic ► Practical experience in preventive and ► Responsible for Power supply, energy
Engineering repair maintenance of machines and conservation water system in the campus
equipment
► Practical experience of maintaining utility
equipment like sub-station, UPS, water
treatment plant, DG set etc.
► Knowledge and experience in tool
► CNC machine programming and supervision
manufacturing, metal cutting through
Senior B. Tech in of machining and assembly of tools
CNC programming and operation
Engineer- Mechanical 5 Years ► Machinery maintenance
► Experience of precision components
Production Engineering ► Quality assurance
► Tool assembly
► Team work
► Tool trial
Diploma in Tool manufacturing, metal cutting through
Engineer- ► CNC machine programming and operation
& Die Making or 3 years CNC programming and operation
Production ► Assembly and trial of Tools
Equivalent ► Tool assembly
► Tool trial
Promotion from manufacturing, metal cutting through
3 years as Sr. ► CNC machine programming and operation
Foreman Senior CNC programming and operation
Technician ► Assembly and trial of Tools
Technician ► Tool assembly
► Tool trial
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Senior
Experience in Maintenance of machines and
Technician
1 year after equipment (electronics or mechanical)/
(Electrical ► CNC machine programming and operation
Diploma/ ITI in Diploma or 5
maintenance / Experience in CNC machine programming and
► Assembly and trial of Tools
respective Years after ITI
Mechanical operation/
► Also work as Maintenance Technician in
areas in respective
maintenance/ Experience in Tool assembly and trial Mechanical/ Electronics
areas
tool assembly &
manufacturing)
► Experience with tooling / manufacturing

► Overall responsible for planning and
and training in metal cutting / tool
executing training activities
engineering / industrial automation
Senior M. Tech. in 10 Years with 5 ► Overall responsible for designing curriculum
systems
Manager- Mechanical years in a and preparing lecture plans and course
► Experience with designing curriculum and
Training engineering similar role material
preparing lecture plans and course
► Responsible for Quality and Certification in
material for long term and short term
training
training and teaching
► Experience with tooling / manufacturing ► Planning and implementing of training
B. Tech. in
Manager and training in metal cutting / tool activities in manufacturing and tooling,
Mechanical or 8 years with 3
Training- engineering / industrial automation Mechatronics, IT etc. including market
Electronics or years in a
mechanical/ systems assessment to discover training demand
Electrical similar role
Electronics ► Experience with designing of curriculum ► Evaluation of training activities and identify
Engineering
and preparing lecture plans and improvements
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development of course material for long ► Curriculum design

term and short term training and teaching ► Lecture plans and course material
► Experience with tooling / manufacturing
and training in metal cutting / tool
engineering / industrial automation
B. Tech.
Senior systems
Mechanical or ► Undertake training courses in manufacturing/
Engineer- 5 Year ► Experience with designing curriculum and
Electronics/ tooling and related courses
Training preparing lecture plans and development
Electrical
of course material for long term and short
term training and teaching experience
► Knowledge of CAD/CAM/CNC
Diploma in Tool ► Experience in tooling / manufacturing and
► Undertake training courses
Engineer- & Die training in metal cutting / tool engineering
3 Years ► Demonstrate practical skills to trainees
Training Making/Electron / industrial automation systems and
► Deliver theory lectures
ics teaching
► Experience in management,
Manager – M. Com. Or administration, and marketing in the
► Helping members of Incubation centre in
Incubation MBA or 8 Years sector
getting orders and execution of the same
Centre Equivalent ► Familiarity with regulations and
compliances
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► Experience in the area of Administration

and Marketing
Officer –
M. Com. or MBA ► Familiarity with Industrial laws and
Incubation 3 Years ► Administration and Promotion
or Equivalent compliances
Centre
► Prior experience of marketing and
promoting in the sector
M. Tech. in ► Marketing of TC product range
► Plan and evaluate marketing activities
Mechanical 10 years with 5 ► Supporting Sr. Managers of respective
Manager- Sales towards all stakeholders
Engineering years in similar departments to acquire orders
& Marketing ► Stakeholder analysis
preferably with role ► Follow up with prospective and existing
► Sales according to targets
MBA customers
► Marketing of TC Products
BE/B. Tech
► Customer Follow-up & Complaints
Mech. with ► Execute marketing and sales activities
Sales Officer 3 years ► Should be familiar with Computerised
MBA or ► Sales invoicing, taxes etc.
accounting procedures
Equivalent
► Feed Back, Dues Collection
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8.4 Governance structure
8.4.1 Governance Model for the new TCs
All the existing 18 TCs have been set up under the Societies Registration Act, 1860. The management
of affairs mainly rest with the Governing Council constituted by MoMSME, Government of India with
the Additional Secretary and Development Commissioner of Ministry of Micro, Small and Medium
scale Enterprises (DC-MSME) acting as the President of the Society and Chairman of the Governing
Council (GC).
This arrangement has proved effective as most TCs have supported local MSMEs well and have
performed financially. Each TC has a separate society and has very decentralized authority and
governance structure. DC, MSME being chairman and other two members Director –Tool Room and
representative of IF-wing of MoMSME are common members in all 18 GCs.
The Bhopal TC will also be set up under the Societies Registration Act, 1860 and will function as the
current TCs are functioning.
The benefits of registering under the Societies Registration Act, 1860 are listed in the table below:
Table 19: Comparison of Society Registration Act and Companies Act
Features Registered Society
Setting up and running cost Nominal
Formation Simple
Jurisdiction Registrar of society
Meetings Annual Meeting As per Law. Governing Body meeting as per

the rules of Society.
Governance Vests with governing body as per the rules framed by them.
Law specifies no rules & regulation
Membership transfer Impossible
Statutory Regulations Limited
Transparency Transparent
(As society act is not so exhaustive requiring statutory

compliance for each and every step of business operation)
Perception commercial Less comfortable

lenders
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Features Registered Society
Interest of commercial Less secured, as Act doesn’t provide any rules regarding how
lenders the interest of lenders can be settled in the case of bankruptcy
Accountability More (Can be established, if the rules, regulation and by-laws

of the Society are framed in manner to fix accountabilities)
Financial Management & Best practices can be adopted through framing regulations.
Disclosures However, Act doesn’t provide anything specific on this
Modification of Objects Easy Legal Procedure
Penalties Lesser
External audits Subject to lesser audit requirement. As Act doesn’t provide for
various kind of audits of the Society. However, generally the
society provide for audit regulations and compliance to audit
observations as part of their bye-laws and rules and
regulations
Basic Document Memorandum of Association

Articles of Association with rules & regulations
The Table above outlines the benefits of registering under the Societies Registration Act, 1860.
8.4.2 Composition of the Governing Council
As mentioned above, the proposed TC will be set up under the Societies Registration Act, 1860. The
management of affairs primarily rest with the Governing Council constituted by MoMSME,
Government of India with the Additional Secretary and Development Commissioner, Ministry of
Micro, Small and Medium Enterprises (DC-MSME) acting as the President of the Society and Chairman
of the Governing Council of each TC.
The Governing Council of TC will comprise four types of members as explained below:
Table 20: Governing Council of Bhopal TC

Representation in the Governing Council Suggestive recommendations
(i) Ex-officio members
Representative from Government of ► Secretary, Industries

India ► Commissioner/Director,
Technical Education &
► Development Commissioner, Ministry of MSME as
Training
Chairman,
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Representation in the Governing Council Suggestive recommendations
► Industrial Advisor or Director of TR or Program

Coordinator,
► Director DI-MSME of the respective States,
► Representative from Integrated Finance Wing of the

Ministry of MSME.
Representative from State Government
► Official from concerned industry department,
► Official from concerned department of technical

education/training.
(ii) Institutional members
► Bhopal/ District MSME

► Representative of state level industrial promotion body
association
► Representative of association of small scale industries
► MP Trade and Investment
► Representative of the local chambers of commerce and
Facilitation Corporation
industries/ Industry Promotion Institution/NSIC.
Limited, MPTRIFAC
(iii) Professional and other members
► One expert representing the fields of finance & accounts/ ► To be nominated by O/o DC-
law/management, MSME
► One representative of small scale tool producers, ► To be decided by O/o DC-
► One representative of OEM, MSME
► One representative of major manufacturers in the region
► Representative of Technical University of the state which
governs engineering colleges
(iv) MD/Executive Director/GM/PD of the Society
On his appointment, the Executive Director or General

Manager of the Society shall automatically become ex-officio
member of the Governing Council during the tenure of his
office, as Member Secretary.
► Role of the governing council
The Governing Council will discharge such duties and responsibilities, exercise such powers and
undertake and carry out such activities as considers essential with a view to attain the aims and
objectives as per the Memorandum of Association of the Society, with particular reference to the
following;
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 To prepare and execute plans and programmes for the establishment of the TC based on
the plan of operation and to carry on its administration and management after such
establishment.
 To prepare, consider and approve the policies and strategies of the Society and to
reconsider and amend the said policies and strategies whenever appropriate.
 To receive grants and contributions and to have custody of the funds of the society.
 To prepare, consider and approve the budget estimates of the society every year.
 To prepare and maintain accounts and other relevant records and annual statement of
accounts including the balance sheet of the society.
 To open, conduct and prescribe courses of study, training and research in tool management
and allied subjects.
 To fix and receive such fees and other charges from persons undergoing training as may be
necessary.
 To prescribe rules and regulation for the admission of candidates to the various courses of
training.
 To lay down standards of proficiency to be demonstrated before the award of diplomas,
certificates and other distinctions to the trainees.
 To institute and award scholarships, prizes and medals.
 To provide for and supervise the residence, health, discipline and the well-being of the
trainees in the Society.
 To create subject to the provisions of Rule 68 supra technical, training, research,
administrative, ministerial and other posts under the Society and to make appointments
thereto on such terms and conditions as deemed appropriate.
 To co-operate with any other organisation in the matters of education, training,
management and allied subjects.
 To enter into arrangements for and on behalf of the society.
 To sue and defend all legal proceedings on behalf of the Society.
 To appoint committee or committees for the disposal of any business of the Society or for
advice in any matter pertaining to the Society.
 To delegate to such extent it may deem necessary any of its power to any officer or
committee of the Governing Council.
 To consider and pass such resolution on the Annual Report, the annual accounts and the
financial estimates of the Society as it thinks fit.
 To make, inform, adopt, amend, vary or rescind from time to time rules and by-laws for the
regulation of and for any purpose connected with the management and administration of
affairs of the Society and for the furtherance of its aims and objectives.
 To make, adopt, amend, vary or rescind from time to time rules and by-laws for
o For the conduct of the business of the Governing Council and the committee(s) to
be appointed by it,
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o For delegation of its powers,

o For fixing quorum.
 To sell, lease, mortgage or exchange and otherwise transfer all or any portion of the
properties of the Society.
 To establish a provident fund for the benefit of the employees of the Society.
 To perform such additional functions and to carry out such duties as may from time to time
be assigned to it by the Society.
 To establish procedure in respect of services and technical advice to be rendered to the
industry by the Society and the levy and collection of charges for the same.
 To delegate its powers as may be deemed fit and appropriate but not the powers for:
o Altering, extending or abridging the purposes of the TC within the meaning of the
Societies Registration Act, 1860.
o Amalgamating the TC either wholly or partially with any other TC having similar aims
and objectives.
o Altering, extending or abridging the Rules and Regulations of the TC within the
meaning of the Societies Registration Act, 1860.
o Shifting the existing location or altering the capacity of the TC.
o Making capital investment exceeding the approved budget.
o Borrowing money except for working capital exceeding the approved budget.
o Transferring by way of mortgage, pledge, hypothecation or otherwise any assets,
moveable or immovable, except as security for working capital.
o Appointing bankers and auditors.
o Generally anything extraordinary and of major importance.
► Roles and responsibilities of the member secretary (GM/PD/MD)

 Plan, direct, co-ordinate, organize and supervise day-to-day work of the society.
 Implement policies, strategies and such programs of the society and attend to all statutory
requirements imposed thereon.
 Prescribe the functions, duties and responsibilities for all officers and staff of the society,
give them appropriate instructions and exercise such supervision and disciplinary control
as may be necessary.
► Roles and responsibilities of the O/o DC-MSME in management of the TCs

 Support DC-MSME in executing the responsibilities as the Chairman of the Governing
Council of all TCs.
 Support in implementation of strategic projects and policies from the central to the TC
levels.
 Act as the nodal point of coordination between the TCs and the DC-MSME.
Page 120 of 242

Marketing Plan
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9. Marketing plan of Bhopal TC
The marketing plan of Bhopal TC would require specific actions to engage with potential customers
and clients in the catchment area. A series of activities is therefore required to be planned for
effective marketing of Bhopal TC to promote its business, product or services. A broad suggestive
framework for marketing of Bhopal TC would include the following;
Figure 23: Suggestive framework for marketing of TC
In line with the above suggestive framework, a detailed Go to Market plan of the proposed TC will be
prepared subsequently by the Cluster Network Manager (CNM) along with the GM and marketing team
of the TC. The role of CNM for marketing would be very crucial and will act as an additional arm of
the marketing wing of the proposed TC. It will further strengthen its market linkages with the MSMEs
in the cluster it serves. CNM will also market the TC within the trade and industry associations,
academia, educational institutions, applied research institutions, service providers, other
government support institutions, workers and skill seekers.
As part of the marketing initiative, CNM would work closely with MSME clusters in the region to
understand their needs and requirements and involve OEMs/ large players in the region. Based on
the observations, the marketing strategy of the TC would be customized targeting various focus
groups including technical and training institutes. Further, the CNM would be part of the consolidation
of the results and recommendations of the diagnostic into a strategic plan for cluster development.
The CNM would also represent the TC in various industry oriented outreach programmes and
workshops. This would help in two ways; promoting the TC and understanding industry perspective
and future areas of focus. The same will help to identify key areas of focus for the TC and align the
future marketing strategies accordingly.
Hence, the CNM would promote the TCs in among the newly developed partnerships for mutual
benefit around identified programmes / initiatives.
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The plan should clearly position the proposed TC’s marketing mix with respect to its four Ps - product,
price, place and promotion. The suggestive points which needs to be taken care while designing the
Go to Market Plan for the Bhopal TC has been highlighted below:
Figure 24: Positioning of marketing mix for proposed TC
Product
Place Bhopal TC
Price
Positioning
Promotion
Product
A General Engineering TC is proposed to be developed at Bhopal based on the presence of large

engineering focused units (in Auto ancillary, Fasteners, Scientific instruments, Metal fabrication,
repair and maintenance etc.), analysis of the industry and market. The product and service
offering of the proposed TC therefore has been carefully derived keeping in view the existing gaps
to address specific requirements of this sector. Further the shortlisted specializations and
respective courses to be offered by the proposed TC have been done keeping in view the shortage
in the availability of required skill sets in the labour force across the industry.
The summary is provided below:
The key offerings of the proposed TC will be; manufacturing of tools, training for skill
development with respect to various specialisations, consultancy services in general engineering.
Focus areas would include:
 Long and short term training programmes in CNC/ CAD/CAM, advance welding, industrial
and process automation etc.
 Manufacturing of moulds, jigs and fixtures etc. for general engineering
 Consultancy services in the field of product and tool design, manufacturing etc. for
improved quality and productivity.
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Price
As per the study and discussions with GMs of some of the existing TCs, the proposed TC should
adopt the cost plus pricing approach for its products and services during its initial years of
operation and thus ensuring operating profit for sustainability. Most of the existing MSME TCs
follow the cost plus pricing approach only for all of their products and services
As a differentiator from the existing MSME TCs, it is proposed that once the TC strengthens its
brand and credibility in the market it should gradually move towards market-based pricing with
defined margin levels (margin based costing). Then, the TC will have to work towards optimisation
of its processes and operations to sustain its margins in the competitive environment.
The above mentioned pricing models are suggestive and will depend on the detailed analysis while
preparing the Go To Market Plan with the support of the CNM.
Promotion
Promotion of TCs products and services is one of the most important components of the Go To
Market Plan for a new set-up. Hence, below are some of the suggestive points which might be
considered while making the final Go To Market Plan for the proposed Bhopal TC.
► Increasing visibility to external audience

 Encourage and execute early communication and promotion of activities by TC which are
relevant to key external audiences including industry, media, technical media etc.
 Producing a steady, reliable stream of quality outbound communications that highlights;
 Research innovations and technology evaluations coming from the TC and its
partnerships.
 Special events and conferences hosted or supported by TC.
 Working with industry partners to identify projects for joint publicity.
 Develop Facebook/ LinkedIn/ Twitter/ YouTube presence to connect to students.
 Ensure current marketing message is being maintained with all social media platforms
administered by these TC.
► Engaging internal stakeholders
 Conduct media and website training on a regular basis for all interested faculty and staff.
 Leverage active partnerships with the industry and community, inviting departmental and
staff participation.
 Ensure department faculty and staff are informed of the progress of the TC with respect
to each goal.
► Other Activities
 Website: Develop a website showcasing all highlights of the TC.
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 TC fast facts: Fast fact can be a two-page information sheets describing the highlights of
TC. It can be made available online and increase the visibility to external audiences.
 TC online email newsletters: Preparation and delivery of high-quality email newsletters
from TC to industrial units, associations and other partners with the latest research
announcements, news and more of engaging and interesting information to these external
audiences.
 High quality print promotions: High quality print promotions coordinated by TC
communications, which maintains the Bhopal TC as a brand to be utilised in outreach
efforts.
 Industry tie-ups: Partner with Industries and other technical education institutes to
increase the visibility of TC. Explore opportunities to participate in publications and other
co-branding opportunities with these partners from time to time.
 Maintain consistent social media presence: Ensuring consistent, exciting messaging is
posted on active social media platforms including the TCs Facebook page, Twitter account,
YouTube channel and others. Promote the presence of TC on these platforms to students,
alumni and supporters while acting as a social media hub for internal departments
Place
Bhopal is strategically located at the centre of Madhya Pradesh has significant advantage of its proximity
with Indore, Delhi, Mumbai. Automobile ancillary, Metal Fabrication, scientific instruments, agriculture
implements, and other engineering firms operate in the region.
As a part of developing the go to market plan GM would work with the CNM, during the final stages
of the construction, to prepare a detailed marketing plan keeping in view the focus areas of the TC.
This team, with support from CNM, would be responsible to conduct the suggestive activities as
mentioned in the promotion component and lead the marketing initiative for the TC.
In view of the above broad framework the following would be undertaken for marketing of the TC
during its inception to start with. It is proposed to keep aside an initial one time marketing budget for
completing most of the below mentioned activities through third party vendors:
Table 21: Suggestive marketing activities, ownership and timeline
Phases Activity Ownership Timeline
 Designing brochure of TC (through

Preparation of Construction
outsourcing) Marketing
promotional and Post
 Short video film of TC infrastructure and team, GM
materials construction
facilities available (through outsourcing- post and CNM
phase
completion of the infrastructure/construction)
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 Development of TC website (through

outsourcing)
 Preparing list of industrial association bodies
in the Bhopal catchment, district and state.
 Preparing list of industries in consultation with
DIC.
CNM and Construction
Pre marketing
 Shortlisting of perspective players’ with
GM phase
activities
respect to product range and process.
 Design a brief questionnaire.
 Preparing list of engineering colleges, ITIs,
polytechnics, in the catchment area.
 Send the brochure along with cover letter and
short questionnaire to the shortlisted
industries.
 Seek time from large industries and industry
body associations to give presentation on the
capability statement of Bhopal TC with respect
to manufacturing of tools etc.
During
 Send representatives to get the filled
GM, installation
Targeting the questionnaire or fill the questionnaire
Manager and
manufacturing circulated earlier.
Marketing, commissioning
units  Analyse the questionnaires received with
CNM and of machines
respect to production, consultancy, training
TP for
requirements of industries.
manufacturing
 Meeting the key industrial units identified in
the analysis to further understand their needs
with respect to tool manufacturing,
production support, training of employees etc.
 Organise as well as participate in industry
oriented outreach programmes/ seminars/
workshops/ boot camps etc.
OEMs are important because they involve many
GM,
industries including MSMEs in the manufacturing During
Manager
of a product. The TC will plan for targeting the installation
Targeting Marketing,
same through the following; and
OEMS CNM and
 Take appointment and meet the OEMs in the commissioning
TP
region to understand their specific needs with
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respect to support required in tool

manufacturing and training of employees etc.
 Presentation on the capability statement of
the TC with respect to manufacturing of tools,
training etc.
 Get their vendor details and understand their
portfolio of product requirement at various
levels
 Plan to Increase product portfolio to cater to
the OEMs and their vendors
 Meet the principle/ HoD of the institutes and
present on the capability statement of Bhopal
TC with respect to training infrastructure,
faculty, real time learning with on job learning During
Targeting
etc. installation
technical and Marketing
 Seeking permission and presenting the same and
vocational team (GM)
to final and pre final year students commissioning
training and CNM
 Getting permission to display the brochure of of machines
institutes and
TC on the notice board of these institutes. for training
high schools
 Organise as well as participate in industry
oriented outreach programmes/ seminars/
workshops/ boot camps etc.
Page 127 of 242

Focus Area for

Bhopal TC
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10. Focus area for Bhopal TC
The proposed TC in Bhopal will be focused on General Engineering with facilities such as; Training,
Production support, Rapid Prototyping Centre, Incubation Centre and Advisory Services. Out of the
three areas, skill development/training will be the key driver of TC’s operations. The details of these
facilities are explained below.
10.1 Training
The TC at Bhopal will provide professional training in various courses with focus on general
engineering. The TC will be able to produce highly skilled technical workforce, with greater career
prospects in the General engineering industry. The duration of courses will be both short and long
term, ranging from 1 month to 48 months in various specializations like; Tool Room & CNC
Manufacturing, CAD/ CAM, Advance Welding , Electronics and IT, Industrial and process Automation,
etc. The batch size; number of batches per annum and respective fee have been decided on the basis
of capacity of existing TCs and NCVT norms. A soft skill lab for training in English language and
communication facilities will also be established in the TC. Soft skill module will be an integral part of
all the medium to short term courses. The TC will start training activity from the first year of its
operation across all specializations. The total capacity intake is expected to reach around 8,400
trainees over 5 years. The detail of courses in various specializations is given below:
Table 22: Details of specialization, courses, duration and capacity intake
No. of
N Duration Batch Annual
Specialization Course name Batch/
o. (months) size intake
year
Advanced Diploma in Tool & Die

making 48 60 1 60
Certificate course in Machinist 24 30 1 30
Post Diploma in Tool Design 18 30 2 60
Post Diploma in Tool

Manufacturing 12 30 2 60
Tool Room
1 Post Diploma in CNC-Prog & Op 12 30 2 60
Post Diploma CAE

(manufacturing) 12 30 2 60
Adv. Certificate Course in Tool

Design & CAD/CAM 12 30 2 60
Contd..
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No. of
year
Adv. Certificate Course Tool &

Die Manufacturing 12 30 2 60
Certificate Course in Tool & Die

Making 12 30 2 60
Master Certificate Course in

Tool Design 12 30 2 60
Certificate Course in Machine

Tool Operations (Conventional
L,M,G) 3 30 2 60
Master of CAD/CAM/CNC 6 30 2 60
Sub Total 690
Machine Maintenance-
mechanical 3 20 4 80
Maintenance Technician 3 20 4 80
mechanical (Part Time) 6 20 2 40
2 Maintenance Certificate Course in Machine

Maintenance 12 30 2 60
Diploma in Design,
Manufacturing & Maintenance 6 30 2 60
Maintenance Technician (Part

Time) 6 20 4 80
Sub Total 400
CNC lathe programming and

operation (Full Time) 2 30 6 180
CNC lathe programming and
CNC operation (Part Time) 4 30 12 360
3 Manufacturing CNC Milling Prog and Operation

, CAD/CAM (Full Time) 2 30 6 180
CNC Milling Prog and Operation

(Part Time) 4 30 12 360
Contd..
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No. of
year
CNC Turning 1 30 6 180
CNC Milling 1 30 6 180
CAD/CAM/CNC ENGINEER (Full

Time) 2 30 6 180
CAD/CAM/CNC ENGINEER (Part

Time) 4 30 12 360
CAD Modelling with different

softwares (Full Time) 1 20 12 240
CAD Modelling with different

softwares (Part Time) 2 30 12 360
Computer Integrated
Manufacturing (CIM) 1 30 12 360
Sub Total 2940
Basic Arc and Gas welding (Full

Time) 3 20 4 80
Basic Arc and Gas welding

(Part Time) 6 20 4 80
TIG welding (Full Time) 1.5 20 4 80

Welding
4 3 20 8 160
Courses TIG welding (Part Time)
MiG welding (Full Time) 1.5 20 8 160
MiG welding (Part Time) 3 20 8 160
Spot Welding (Full Time) 1.5 20 2 40
Spot Welding (Part Time) 3 20 4 80
Sub Total 840
Basic computer and Hardware

(Part Time - 4 hrs) 2 30 12 360
Advanced Hardware &
Electronics Networking (Part Time - 4 hrs) 4 30 6 180
5 and IT VLSI Design 1 30 4 120
Embedded System Design 1 30 4 120
Electronics Maintenance 2 30 4 120
Contd..
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No. of
year
Field Instrumentation &

Controls 2 30 4 120
SCADA 2 30 6 180
Power Electronics and

Industrial Drives 2 30 6 180
Solar energy system technician 3 20 4 80

Sub Total 1560
Industrial Hydraulics 1 30 12 360
Industrial pneumatics 1 30 12 360
PLC Programming 1 30 12 360

Industrial and
Automation Technician 4 30 4 120
process
Industrial automation design 4 30 4 120
6 Automation
Certificate course in Industrial
and Others
Automation (Part Time - 4hrs) 4 30 4 120
Diploma in Mechatronics 36 40 1 40
Certificate Course in Metrology

& QC 6 30 4 120
Principle of Electric Drives
Materials Selection Process for

Engineering Designs These course will be available on
Patent Litigation Risk subscription basis for the students.
Audio Visual
7 Management Toolkit Students can also avail subscription of
Courses
Finite Element Analysis (FEA) publishing houses like Springer etc.
for Design Engineers through Technology Information Centre.
Vehicle Sound Package

Materials
Sub Total 1600
Grand Total 8030
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The TC will have adequate installed infrastructure like machines, software, computers etc. required
to provide training to the proposed number of students under various specializations. The
estimated cost of these machines is approximately INR 26.80 Cr. The following table provides the
details of the same;
Table 23: Proposed list of machines for training
Value
S.No. Training Machines Nos (lakhs) Total
Advanced Machines
CNC-Milling 10 30 300
1.
CNC-Lathe 10 25 250
2.
CNC Turn Mill 1 30 30
3.
CNC Wire Cut EDM Machine 1 35 35
4.
CNC EDM Die Sinking 1 25 25
5.
Conventional Machines
Conventional Milling-V-H-U 15 12 180

6.
Conventional Lathe 15 4 60
7.
Surface Grinding 6 5 30
8.
Cylindrical grinding 4 10 40
9.
Radial / Pedestal Drilling Machine (25 mm) 10 1 10
10.
Labs and Supporting machines
Welding workshop for 24 including simulator 1 150 150

11.
Welding QC Lab 1 50 50
12.
Maintenance Lab 1 50 50
13.
Solar Energy Lab 1 30 30
14.
CNC Milling & Lathe Simulation Modules 30 2.5 75
15.
Computers for Computer Labs 300 0.75 225
16.
Basic Instrumentation Lab 1 50 50
17.
Automation Lab for 20 1 set 200 200
18.
Metrology Lab Equipment 1 100 100
19.
Contd..
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Value
S.No. Training Machines Nos (lakhs) Total
Earth Moving Equipment Maintenance Lab 1 150 150

20.
Chemical and Metallurgical Test Labs 1 200 200
21.
IT Hardware & Networking labs 1 20 20
22.
Teaching aids (Audio Visual) 30 1 30
23.
Teaching aids (Smart Board) 10 1 lot 10
24.
CAD/CAM software License 250 0.3 75
25.
Tooling and Tooling Systems @5% 58
26.
Tool & Cutter Grinder 1 20 20
27.
Work benches and Kits 30 2 60
28.
Furniture for labs 60 0.25 15
29.
Classroom Furniture @ 60 seats 8 3 24
30.
Misc, Unforseen & Contingency 5% 128
Total 2,680
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10.1.1 Production
On the basis of focus sector for the proposed TC, following are the machines identified for
production/ manufacturing activities at the proposed TC. The list will be further validated by
technology partner for finalisation and to initiate procurement. The budgetary cost (landed cost) of
these machines is approximately estimated at around INR 25.57 Cr. The TC will provide various
machining support to MSMEs in the catchment area. The growing concerns related to climate change,
energy security, scarcity of natural resources and increasing environmental regulations is putting
more emphasis on sustainable production activities in manufacturing process. Due care therefore
has been taken during the identification of machines for production systems and associated services,
processes, plants and equipment in the TC. This will make the TC environmental friendly and energy
efficient and would be better equipped to manufacture more products with less material, energy and
waste.
Table 24: Proposed list of machines for production/ manufacturing activities
Numb Value Total

S.N. Machine Size
er (lacs) Cost
Advanced Machines
1 CNC Milling-5axis 1.2m*0.8m*0.8m 1 350 350
2 CNC Milling-3axis 1.5m*1m*1m 1 150 150
3 CNC Milling-3 axis .8m*.6m* .45m 3 75 225
4 CNC Lathe 400*1500 mm 1 35 35
5 Conventional Vertical Milling 1200*300*400 mm 2 25 50
6 Conventional Lathe 400*1200 mm 2 20 40
7 CNC EDM Wire Cut 500*500*400 mm 1 100 100
8 CNC EDM Die Sinking 500*500 mm 1 100 100
9 Tools & Tooling Systems 105
10 Radial drill machine 63mm 1 10 10
11 Surface Grinding 1600x1000 mm 1 60 60
12 Cyl Grinding Dia 200x750mm 1 40 40
13 Hydraulic press 200 T 1 75 75
14 Mechanical Press 250 T 1 60 60
15 Injection Molding Machine 125 T 1 50 50
16 Vacuum Heat Treatment Furnace Dia 600 mm 1 200 200
Heat Treatment Aux Eqp, Toolings &
17 Tooling Systems @ 10% 1 60 60
Work Benches with Bench Vices &
18 Assembly Kits 10 1 10
Contd..
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Numb Value Total

S.N. Machine Size
er (lacs) Cost
Auxiliary Eqpts (Drill m/c, Bench

19 grinder, Surface Plates etc.) 1 lot 20 20
15 Tonne & 2 Tonne

Matl. Handling Eqpt.- EoT crane, Jib
20 Crane, Trollies 1+2 50 50
Compressor (approx. 250 CFM)
21 including piping and accessories 2 15 30
22 Quality Control and Metrology Lab Eqpt. 1 lot 200 200
CAD-CAM Software CATIA,UG etc. and
23 Analysis Software 10 10 100
24 Testing and Certification Lab 1 300 300
25 Scanning/Drafting/Printing 1 5 5
26 CAD-CAM Workstations 10 1 10
27 Misc and Contingency 5% 122
Total Production Machines & Equipt. 2,557
10.2 Rapid Prototyping Centre
The Bhopal Technology Centre would have rapid prototyping centre which will give MSMEs access to
high-capacity rapid prototyping services at reasonable costs. The centre will have latest technologies
and will be able to produce functional prototypes, presentation models, casting patterns and
production parts in a variety of materials. The centre will have the capability to digitize physical
objects through 3D scanning processes and thus will be able to help the MSMEs in reverse engineering
of vital components. The centre will also conduct training programmes for personnel from academia
and industry.
Initially the centre will manufacture prototypes in plastic and metal only, however in future
prototypes in sand can also be introduced depending on the requirements of MSME in the catchment
area. Following machines are proposed to be part of Rapid Prototyping Centre and same can be
reviewed by MTP;
Total Cost
S.N. Machine Number Value (lacs)
(lacs)
1 3D Metal Printer based on SLS/SLM technology 1 300 300

2 3D Printer based on Polyjet/FDM technology 1 75 75
3 3D Scanner 1 85 85
Contingency @ 5% 23
Total Cost 483
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10.3 Consultancy
MSMEs are plagued with bottlenecks and inefficiencies that compromise their competitiveness and
presence in the market. Handholding is required to enable MSMEs to develop competencies in the
areas of product & process development, operation improvement, streamlining and standardisation
of processes through adoption of international norms, new technologies and capacity enhancement.
Quality and technical relevance of products need to be maintained by supporting product
development, component manufacturing, precision engineering, process automation and adherence
to quality norms.
Therefore, the Bhopal TC would have a dedicated professional wing to assist MSMEs by providing
consultancy services in the field of Design Support (incl. Product Design), Engineering Solutions
(Development of Jigs & Fixtures for Machining, Welding etc., Quality System Support, Project
Consultancy (curriculum development, community colleges, trainers etc.), Low cost Automation
Solution support, Productivity Improvement. The support of TP will be taken wherever required.
Consultancy will be provided in the following areas:
► Product development and engineering solutions

► Project consultancy in setting up of private TRs, training centre etc.
► Design support
► Quality systems support
► Productivity improvement through cluster approach
► Curriculum development, Course material development for ITIs, Polytechnic etc.
► Trainers training to ITI, Polytechnic and Community Colleges
► Lean manufacturing
► Business incubation services
► Other consulting projects
► Vendor development for MSMEs
Since providing consulting services requires the expertise in specific domain, the TC would hire the
required resources to increase the in-house capability. Illustrative phasing of the areas/domains
where the TC can provide consulting services has been suggested below. This has been designed
keeping in mind the resource planning and future revenue projections as well.
The designing and consulting department will be equipped with high-end workstations, CAD/ CAM
software, and analysis software. The design and consulting department is recommended to have 7
experts. The consulting team will also be supported by the production and training departments on
need basis. In addition to the above, 30 trainees of final semester tool design course will also work
with design department in shifts on daily basis. It is also proposed to have tie-ups/ collaborations with
other MSME TCs in specialised areas of project consultancy as and when needed. The table below
represents the projected revenue estimates for 10 years, keeping in mind the impetus on the
consulting services for the proposed TC. The revenue estimation has been done using the average
machine hour rate.
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Table 25: Areas of consulting and estimated revenue
S. Consulting Suggestive Suggestive Suggestive Suggestive Suggestive Year 6 Year 7 Year 8 Year 9 Year 10
No Areas Rev Rev Rev Rev Rev
Year 1 Year 2 Year 3 Year 4 Year 5
50% 30% 30% 30% 30% 30%
1. Design
Support
5,00,000 7,50,000 11,25,000 16,87,500 25,31,250 37,96,875 56,95,313 85,42,969 1,28,14,453 1,92,21,680
(incl. Product
Design)
2. Engineering
Solutions
(Developmen
t of Jigs &
- 1,50,000 2,25,000 3,37,500 5,06,250 7,59,375 11,39,063 17,08,594 25,62,891 38,44,336
Fixtures for
Machining,
Welding,
etc.)
3. Quality
System - 1,00,000 1,50,000 2,25,000 3,37,500 5,06,250 7,59,375 11,39,063 17,08,594 25,62,891
Support
4. Project
Consultancy
(curriculum
- 1,00,000 1,50,000 2,25,000 3,37,500 5,06,250 7,59,375 11,39,063 17,08,594 25,62,891
development
, community
colleges,
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trainers,
etc.)
5. Low cost
Automation
3,00,000 4,50,000 6,75,000 10,12,500 15,18,750 22,78,125 34,17,188 51,25,781 76,88,672
Solution
Support
6. Productivity
2,50,000 3,75,000 5,62,500 8,43,750 12,65,625 18,98,438 28,47,656 42,71,484 64,07,227
Improvement
2,50,000 3,75,000 5,62,500 8,43,750 12,65,625 18,98,438 28,47,656 42,71,484 64,07,227
Total 5,00,000 19,00,000 28,50,000 42,75,000 64,12,500 96,18,750 1,44,28,125 2,16,42,188 3,24,63,281 4,86,94,922
*The suggestive revenue from design support during 2018-19 has been estimated on the basis of usage of CAD Software like CATIA, UG or other analysis
software etc. The TC is provisioned to have 5 numbers of such software packages which with an average estimated rate/hour of INR 200. So with installed
capacity @ 70%, the revenue from this stream during one shift of operation is estimated to be around 5*8*70%*200 = INR 5,600. Assuming 30% capacity
utilisation for 300 days during 2nd year (2018-19), the total estimated revenue from CAD Software like CATIA, UG packages is INR 4.9 lakhs. Hence, the total
estimated revenue from design support is around INR 5 lakhs for year 2018-19.
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Table 26: Proposed areas of consulting
Consulting Stream Focus Area (Recommended)
► Tool design in the field of sheet metal, press tool and plastic
moulds.
Design Support (incl.
► Support MSMEs in designing products to be supplied to OEMs.
Product Design)
This will require 3D modelling and may include reverse
engineering etc.
► Designing the machining processes involving jigs and fixtures
Engineering Solutions
design, cutting tool selection, machine selection, cycle time and
(Development of Jigs &
tack time selection and achieving the final shape and quality
Fixtures for Machining,
Welding etc.
► Supporting MSMEs in establishing quality systems, quality

Quality System Support
improvement and acquiring necessary certifications
► Supporting training institutes in curriculum develop,
Project Consultancy
community colleges, trainers etc.
(curriculum develop,
► This may also involve setting up of Tool Rooms and vocational
community colleges,
training centres on turnkey basis for various companies under
trainers etc.)
CSR initiatives and for Government
► To handhold MSMEs in improving productivity on a long term
Productivity Club
basis (1-3 years) on a membership basis
► Solutions to automate process for increasing efficiency at
Low cost Automation
various stages of manufacturing
Solution support
Based on the focus areas recommended above, revenue estimation has been done for the identified
consulting streams. These estimations are purely based on the historical data, prevailing market
rates and discussions with the existing TRs.
Table 27: Estimated revenue from consulting

Consulting Stream Approximated Revenue Estimation
► Revenue estimation from CAD Software like CATIA, UG etc. – 5

Nos. and hourly rate of Rs 200. This is initially estimated to run in
Design Support (incl.
1 shift (8 hrs.) at 25% capacity. The installed capacity assumed to
Product Design)
be 70% running for 300 days a year. Therefore the calculation
would be, 25%*[(10*100*8*300)*80%] = INR 4,20,000 per year
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Consulting Stream Approximated Revenue Estimation
► Revenue from other Engg. Analysis software like ANSYS, mould

flow, auto-form etc. estimated to be INR 48,000
Rate of INR 250/hr with an estimation of minimum requirement 100

Engineering Solutions hours per product. We have estimated initially at least 4 products in
first year. Therefore, 4*250*100 = INR 1,00,000/year
Estimated rate of INR 50,000 per unit. We have estimated serving at

Quality System
least 2 units in the first year. Therefore, 50,000*2 = INR
Support
1,00,000/year
Project Consultancy Revenues from these assignments vary significantly depending upon
(curriculum develop, the nature of the assignment. We have estimated a range of INR 1-4
community colleges, lacs per assignment with 5-6 assignment per year
trainers etc.)
Productivity Club To start with, fee of INR 20,000 per from 5 units per year. Therefore,
5*20,000 = INR 1,00,000
Low cost Automation To start with, fee of INR 1, 00,000 per from 1 units per year.
Solution support Therefore, 1*1,00,000 = INR 1,00,000
10.4 Centre of excellence for manufacturing skill development

Madhya Pradesh represents a key industrial hub of the country with presence of more than 20% of
total large and medium OEMs. In order to supply skilled manpower to this hub and other states, The
TC is going to play a vital role. It shall work as a nodal skill development centre. It shall not only
provide advanced training in manufacturing technology but also work as a key facilitator for existing
ITIs and polytechnic institutions in the catchment area. The following services shall be provided by
the TC in order to increase competitiveness of ITIs and Polytechnic institutions.
► Curriculum Development Support: The TC shall assess curriculum of these institutions and
provide support in developing modular training program which are latest and high on demand
by the local industry. Based on the assessment of utilization of the existing infrastructure,
the TC shall advise new courses for the institute.
► Mentorship for new institution: The TC shall work as a mentor and provide support in setting
up new ITI and small skill development sector in manufacturing field.
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► Testing and certification of the skill: The TC will work as a nodal organization to provide
common platform to test and certify the skill level of the trainees.
► Training of Trainers: The TC shall provide access to new and advanced technology for the
trainers of these institutions and shall provide necessary training to upgrade their skill set.
Bhopal
TC
Figure 25: Support for other training institutions
10.5 Proposed support system to enable private TRs tap the market
A collaborative approach with private TRs can help to augment capacity to support MSME.
► Productivity and Quality club: To form a productivity and Quality Club where engineering units
in a cluster under MSME may join the club on a reasonable annual fee. The value to the MSMEs
would be as follows; MSME TC needs to earmark one expert (with support from TP if required)
for the cluster for a period of 12 months with minimum 12 assured visits. The expert would
mentor the MSME units individually towards improvement of their system and process to
increase the productivity of the unit and quality of its product. These members may also enjoy
preferential treatment in other services of the Tool Room e.g. designing and testing, CAD/ CAM
etc. The club will facilitate for;
 Partnerships and collaborations:
 Develop better partnerships with corporations located in the state and in the
catchment.
 Collaborations with academic and applied research institutes to commercialise new
technology/ innovations.
 Facility Sharing: Sharing the Tool Room facility like high end design, analysis, intricate
machining etc.
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 New Market: Jointly exploring potential new markets/ programs and execution the
same.
 Innovation: Promote emerging technological and knowledge-based innovative through

seminars and clinics.
► Partnering with small tool rooms and MSMEs to make them competitive: The objective of
the same is to carry out activities with potential to develop competitive advantage over time.
Rather than two or more Tool Rooms in the catchment producing similar kind of products, a
group of Tool Rooms can specialise in selected jobs which would further improve the focus
on factors such as quality, costs and time.
 Case Study – Consortium with MSMEs - CTTC Bhubaneswar
In 2013, CTTC Bhubaneswar has formed a consortium with 15 MSMEs from different industries
in Odisha.
Objective
To obtain jobs/ work orders from customers for the consortium. These jobs, once received will be
executed by different members of the consortium according to their capabilities and capacity.
The majority of the work will be performed by the consortium members. In the initial period,
CTTC will support the MSMEs to undertake final machining and inspection for the products.
Over the period, as MSMEs equip themselves and develop in-house capabilities to independently
execute the jobs, CTTC’s support will reduce. Further, the number of MSMEs in the consortium is
expected to increase, which would in turn strengthen the existing consortium and its capability to
pitch for more specialised jobs.
CTTC has jointly pitched for jobs for consortium with its clients like
 Ordnance factory, Balangir

 HAL Koraput
Key Benefits
 As part of the consortium, the MSMEs can pitch for bigger and long term jobs and plan
their investments in a better way. This will in turn encourage formation of new MSMEs and
strengthening of existing MSMEs in Odisha
 Currently for some of the jobs, CTTC has to reach out to MSMEs outside Odisha. Over the
period as MSMEs in Odisha get better equipped, these jobs can be performed by them.
 Gradually CTTC will move up the technology curve and would provide support mainly for
higher end technologies and so on.
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10.6 Technology collaboration
The TC at Bhopal will venture into multiple new areas and to facilitate technology transfer and
improve market linkages, role of TP and a CNM has been planned under TCSP.
► The TP will help identify and define globally competitive technological capabilities required in
the cluster and assist proposed TC in building this capability through planning and handholding
over a period of six years. The Technology Partner (TP) is required to enhance the capability and
service offerings of TCs such that they transform to become models of manufacturing excellence
for MSME. They need to become a trusted partner for MSMEs to learn how to attain
manufacturing excellence and attain associated excellence in skills development. The services
of the TCs include being exposed to the potential impact of new and relevant technologies,
trainings on use of technologies/equipment, providing access to cutting-edge equipment,
developing and testing new products and patenting. The key objectives of the TP include:
 In conjunction with all stakeholders of the TCSP identify and define the globally
competitive technological capability required by TCs, assist in their execution and
provide handholding during their roll out.
 Supporting the up gradation of the existing TCs and establishment of new TCs for the
manufacturing sector
 Augment services being offered by the TCs with respect to identified technologies and
clusters with respect to training, production assistance (including optimization of
equipment utilization) and technical advisory, resulting in increase in revenues of TCs
focused at the manufacturing sector
 Support TCs to increase productivity and competitiveness of general engineering
focused MSMEs by
 Exposing them to existing and expected future technologies
 Develop skills of the workers and students in the identified technologies and clusters
 Offering advice/recommendations to MSMEs (clients) who directly or indirectly
supply to large players or component manufacturers.
All investment decisions (technological & other) and work prioritization in TCs must be
intrinsically connected with the market place and efficiently translate market needs to products
and services that (satisfy these needs), & will be enabled by technology and enriched by global
knowledge & expertise of the various stakeholders including the TP, empowered by global
networks and people.
► The CNM will be appointed for a period of six years to facilitate cluster and market development
to realise improved competitiveness. The CNM will work closely with the MSME clusters to
understand their needs and requirements and get OEMs/ buyers involved in the program. The
CNM will strengthen market linkages of TC with the MSMEs in the cluster it serves, trade and
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industry associations, academia, educational institutions, applied research institutions, service

providers, other government support institutions, workers and skill seekers. Existing research
institutions which could be potential collaborators for specific technologies etc. The CNM would
work towards the following key objectives:
 Increase of business opportunity for MSMEs through new market linkages.

 Increase competitiveness of supply chains of large firms by enhancing the quality,
reliability and productivity of MSME suppliers.
 Increase the number of MSMEs utilizing the services of TCs resulting in increase in
revenues of TCs
 Enhance competitiveness of the cluster business environment:
 Increase access by MSMEs to a network of business development services (BDS)
which address needs not in the domain of TC expertise
 Increase access by MSMEs to network of financial service providers
 Increase awareness of opportunities in the public sector to contribute to a more
competitive business environment.
 Establish closer cooperation of key innovation stakeholders to enhance product and
process innovation. This would include linking the research agendas of applied research
and education institutes/organizations to industry and market requirements and
promoting joint research and development projects.
 Facilitate closer cooperation amongst skills development and labour market
stakeholders to increase the number of workers/ trainees from TCs finding long term
employment to improve their livelihood.
 Establish a business model which ensures financial self-sustainability of the CNM as
before the end of the TCSP funding window.
All investment decisions (technological and other) and work prioritization in TCs must be
intrinsically connected with the market place and efficiently translate market needs to products
and services that (satisfy these needs), and will be enabled by technology and enriched by global
knowledge and expertise of the various stakeholders including the CNM, empowered by global
networks and people.
10.7 Technology Information Centre

Access to information is important. People need information to develop their potential through
education and training, to succeed in business, to enrich their technological knowledge. Information
is a key contributor for the development of new technology or a product.
The Technology Information Centre (TIC) will provide access to latest books, journals, engineering
standards etc. to the MSMEs and students at an affordable cost. This will help the MSMEs in enhancing
their knowledge and using latest standards for the development of products. Apart from books,
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journals etc., the TIC would also have Audio Visual rooms where students can go and learn about
latest courses available. The TIC will have audio visual courses as per the requirement of industry in
catchment area. The courses will cover areas like principles of electric drives, product design, product
validation etc.27
10.8 Incubation Centre

Promoting emerging technological and knowledge-based innovative ventures that seek to nurture
ideas from professionals is important for development MSMEs. Such entrepreneurial ideas need to
be fostered and developed in a supportive environment before they become financially sustainable
or attractive enough for venture capital. Hence need arises for incubation centres to promote
budding individual innovators and to assist them to become technology based entrepreneurs. Typical
areas of Incubation support include
 Idea conceptualisation & business planning - Technology commercialization,

 Access to infrastructure – networking, office space
 Access to finance - bank loans, loan funds, guarantee programs, investors
 Access to technology – access to machines, designing support
 Access to market – Introduction to strategic partners
 Facilitation of approvals - regulatory compliances, clearances
The incubation centre may also provide support to promote networking and forging of linkages with
other constituents of the innovation chain for commercialization of their developments.
Figure 26: Key areas of incubation support
Typically the incubation support initiatives provide support to new businesses for an initial period of
2-4 years.
Business incubators differ from traditional research and technology parks in terms of scale and
assistance. Research and technology parks are typically large-scale projects that house corporates,
government companies or university labs to very small companies. Typically research and technology
27
Details of Audio Visual Courses is available in Section 10.1, Table 23 – Details of Courses
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parks do not provide business assistance services, which are the hallmark of business incubators.
However, research and technology parks may house incubation programs.
Several initiatives in this direction of incubation have been taken by various departments of Central
Government. Some of them include
► Incubators scheme for MSMEs- A component of National Manufacturing Competitiveness

programme to improve competitiveness of MSMEs (MoMSME)
The term ‘innovation’ covers a very wide domain. According to MoMSME, innovation signifies
any activity and new/ ingenious procedure or product that is likely to be of use to society and
marketable in the long run. The scheme seeks to provide small dose of assistance, to
students/ ex-students of science and technology and entrepreneurs to try out their
innovative ideas (new processes/ products) at the laboratory or workshop stage and beyond
(to the extent possible) with an objective to carry the idea from concept stage to ‘know-how‘
stage and then to ‘do how’ stage.
► Technology Business Incubator (TBI), Department of Science & technology, (MoST)

TBI is a flagship programme of National Science and Technology Entrepreneurship
Development Board (NSTEDB) and focuses on incubation of potential ideas and innovations
through a well-defined venture/ enterprise creation process and by effectively utilizing the
requisite expertise, facilities and other infrastructure available within the host institution and
the adjoining region. The incubation period is expected to be 2-3 years. Key areas of
assistance in the TBI scheme include:
 Market survey/ marketing,

 Business planning and training,
 Organising management/ technical assistance,
 Obtaining statutory approvals,
 Information dissemination on product ideas/technologies,
 Syndicating finances,
 Arranging legal and IPR services,
 Provision of work space, shared service facilities
The proposed MSME technology centre at Bhopal will house incubation facilities to promote new
entrepreneurs and MSMEs in the catchment area.
10.8.1 Incubation Centre at Bhopal TC
Bhopal TC will provide space for new age entrepreneurs and young minds to transform their
innovative ideas into viable business propositions. The major role of TC will be to facilitate a platform
for a budding entrepreneur to start a business venture with minimum risks. Bhopal TC will ensure
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that incubates have access to technological assistance which will be generated through mentors with
multidisciplinary expertise. Young enthusiasts with creative pursuits with an inherent zeal to be
entrepreneurs will be encouraged to take advantage of this novel initiative. Bhopal TC will facilitate
interdisciplinary research with special emphasis on development and innovation of high-growth-
knowledge-based-business and nurtures the indigenous products. Technical support, business
mentoring, space availability and soft loan facility subject to availability will be the key services of
the TC.
The Incubation Centre proposed at the Bhopal TC will offer the basic shell infrastructure with area
ranging from 40-60 square-meter and latest technologies, world class manufacturing plant and
machinery on rental basis for a 2 year period. This Incubation Centre is expected to fuel the growth
of enterprise which has successfully crossed the stage of pilot order and ready to execute larger
orders. The Incubation Centre would support entrepreneurs to develop end products for
commercialization. The Incubation Centre would comprise of the following facilities:
a) Shell infrastructure for setting up an manufacturing facility with space between 20-40 square
meter
b) Support Business facilities like office space, conference rooms, reception area etc.
c) Business Support: Provides assistance in company formation, provides assistance for

Regulatory Clearances, Vetting Business Plans, etc.
d) Technical Support: The incubatee companies are provided with support of machineries,
testing and calibration equipments, product assessment facilities and mentors for technical
support.
e) Financial Support: The MIC will provide financial support to the Incubatee Companies in the
form of Soft Loan with minimum simple interest, from the funding agencies.
f) Legal Support: The Incubatee Companies would also be assisted in filling patent, patent
harnessing as and when required on chargeable basis.
g) Networking: The MIC will provide Networking with Domains Experts, Consultants, Venture
Capitalist and other funding agencies.
h) IT Support services like internet, video conferencing, Wifi etc.
i) Electricity and power connection with sub-meters
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j) Registrations and Clearances for setting of a manufacturing unit such as environmental

clearances, fire safety, license for running a factory, registration for commercial
establishment etc.
No common plant and machinery has been planned for the first phase of the TC. The Technology
Partner will assess the required common equipment than can be purchased by the TC and offered to
MSMEs on rent. This will also be driven by the need of the entrepreneurs and will become a part of
the incubation centre. In the meantime, the entrepreneurs can utilize the common facilities already
available at the TC.
The Incubation Centre would not only provide space, latest technologies but also help in connecting
with suppliers and skilled workers. One of the key points this Incubation Centre aims to achieve is to
ensure focus on quality control from the get-go. Members of the Incubation Centre would be
encouraged to start work in a setup concentrated on following environment, protocols and ethics
from day one. It is therefore expected that when these enterprises come out of the Incubation Centre
they could be examples of world class manufacturing practices.
10.8.2 Proposals & Selection

The success of an Incubation Centre depends on the ideas it gets for ripening. To get an ‘out of the
box’ ideas an interest generation campaign shall be in operation throughout the year. The campaign
can have conferences, seminars, road shows etc. The other processes which can be a part of
robust selection process are listed below;
Interest
Generation Application Shortlisting Presentation Credentials Selection
Campaign
The incubation centre will have robust processes for entry and a systematic strategy for the exit of
incubates. The entry process will involve stages like proposal submission, interview etc. A model
which will be followed for the development of processes is given below;
The key parameter for the exit of incubates can be:
 Completion of incubation period
 Raising substantial investment from VC/angel investor/ Govt. etc.
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 When the number of employees of the company exceeds 10/15 or so
 When annual revenue of the company exceeds substantial amount.
10.8.3 Investments/ Sustainability of incubation centre

There are various government schemes which can be availed to set up an Incubation Centre. Few of
the Govt. Schemes and other ideas which can be used for investments generation and sustainability
of Incubation Centre are listed below:
a) Modified Special Incentive Package Scheme (M-SIPS) - The scheme is promoted by

Department of Electronics & Information Technology (DeitY), Govt. of India. Under this
scheme subsidy is provided for investments in capital expenditure, 20% for investments in
SEZs and 25% in non SEZs. There are other incentives as well which can be availed by state
govt. for setting up Incubation Centre.
b) Atal Incubation Centre (AIC) – The Govt. of India under AIM, intends to establish ‘new’
incubation centres across India by providing them financial support. Under the scheme, the
incubation centre will provide necessary and adequate infrastructure along with high
quality assistance services to start-ups in their early stages of growth. The government will
also provide a financial assistance of Rs 10 Crore under the scheme if the area provided by
the institution is more than 10,000 square feet. Accordingly the area proposed in
Incubation Centre is 950 square meter which is in line with the requirement. The AIC
scheme can be used by TC to set up Incubation Centre.
c) Incubation Centre should have facilities which can provide pay per use support to existing
and upcoming manufacturing facilities that are keen to be competitive in the ESDM sector.
d) The Incubation Centre would provide World Class Manufacturing plant and machinery on
rental basis for 2-3 years with area ranging from 800-900 Square-meter.
e) Few of the facilities within the Incubation Centre can be set up on PPP model in
collaboration with existing reputed companies present in state such as Volvo, BHEL etc.
f) An international investment promotion cell can be set up to encourage foreign investments

and form alliances with trade bodies from Japan, Taiwan, US and other countries to
facilitate technology transfer.
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Quality System
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11. Quality system
The new TC would further aim to obtain various process certificates to enhance its competitiveness
like;
Table 28: Indicative certifications of quality systems

Name of
Area Details
certification
ISO 9001 Quality ► This would help to monitor, control, and improve quality of
Management products and services offered by the TC
System ► It is a series of standards that define, establish, and maintain a
quality assurance system for manufacturing and service
industries
► ISO 9001 deals with the requirements that organizations
wishing to meet the standard must fulfil
ISO 14000 Environmental ► Will help to address various aspects of environmental
Management management of the TC
System ► It provides practical tools to identify and control environmental
impact and constantly improve their environmental
performance
► These standards call for analysis of the entire life cycle of a
product, from raw material to eventual disposal and focus on
awareness of the processes and procedures that can affect the
environment
ISO 29990 Learning ► For quality professional practice, performance and enhance
services for transparency
non-formal ► Allows for comparison on a worldwide basis of learning services,
education and and management standards in the field of non-formal learning
training
ISO 50001 Energy ► Gives requirement for energy management systems

management ► Establishes framework for industrial plants; commercial,
systems institutional and government facilities and entire organisations
to manage energy usage
OHSAS Occupational ► Is an internationally-applied British Standard for occupational
18001 Health and health and safety management systems
Safety ► It provides for the elements of an effective safety management
standard system which can be integrated with other management
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Name of
Area Details
certification
systems and help organizations achieve better occupational

health and safety performance and economic objectives
► The TC will essentially adopt the 5S technique for process improvement to clean and organise its
workspace to improve the workflow. Further trainees will be trained and exposed to 5S process
improvement technique. This would require the TC to do the following;
 Sort: To de-clutter the workspace and prioritise tools and materials used frequently, the TC
will sort everything in the work area so that unnecessary items (tools, parts, equipment,
storage bins, etc.) can be removed and either discarded or stored elsewhere.
 Straighten: This will involve creating storage solutions that would facilitate orderly work flow
of everything in the TC by placing more frequently used items for quick and easy access.
 Shine: This will require efforts in the initial phase involving painting and installing better
lighting to make the workspace clean and tidy. Further during ongoing activities at the TC,
the work space and equipment will be cleaned and restored to their proper place at the end
of each shift. Basic preventative maintenance tasks like tightening, oiling, restocking will also
be part of this. The workstation would then be ready for the next user (or the next day) and
the order created in the first two steps will be preserved.
 Standardize: The objective of the same would be to make everyone in the TC familiar about
the current steps in order to follow and establish expectations. TC would conduct training,
create documented procedures, work instructions, use visual guides, checklists, and/or
photos for easy understanding of any changes made. Standardised ways will increase
efficiency and be user friendly for TC employees and others.
 Sustain: Sustaining the processes would be important to ensure that focus doesn’t drift away
from 5S. TC would adopt strategies like daily meetings, mini-audit and ongoing continuous
improvement efforts to sustain the 5s.
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Infrastructure and
Facilities
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12. Infrastructure and facilities
The infrastructure of the proposed TC at Bhopal has been developed based on the requirements,
recommended norms, capacity data of the existing TCs capacity, discussions with key stakeholders
and the experience of the team in providing professional advice on similar projects. The team has
studied the applicable AICTE/ NCVT norms for development of infrastructure facilities for
engineering and technology institutes and detailing out the infrastructure provisions for the proposed
TC (attached as Annexure 16.4 for reference) in view of the same. Also leading practices form
international training institutes have also been considered. The TC will be built on area of around 20
acres and the layout will have following blocks with required infrastructure.
► Production Block: The highest priority has been given to the allocation of space for installation
of machines for production activities. Depending on the space required by the machines, the
area for manufacturing should be demarcated which would also include other facilities like
toilets, washrooms and change rooms, adequate space for their mobility, clean drinking water
in their vicinity etc. This block will also have metrology section and rapid prototyping centre
which can be accessed by industry directly.
► Training Block: This area will have classrooms, labs, conference hall, faculty rooms, technical
information centre and facilities for training / seminars/ workshops etc. Welding Workshop
shall be separated from other blocks.
► Administrative Block: This block will have GM and DGMs Office and secretariat. It will also
house office and desk space of all management, professional staff, administrative and support
staff, library and other amenities such as conference room with video conferencing facility,
meeting rooms etc.
► Utilities Block: The utilities block comprises of areas that will house main electrical meter,
VCBs, HT panel, distribution panel and power back up DG plant. The utilities block will also
house water pumps, purification plant and chilling plant, water treatment plant etc. The open
areas around the building will also have some utilities provision such as rain water harvesting
pits and panels for the operation of external lighting. Utility will also include sewage treatment
plant at an appropriate location.
► Hostel and staff accommodation: The hostel blocks will comprise of accommodation for the
students (separate for males and females). A few staff quarters (for driver, security officer,
wardens – boys and girls hostel, Maintenance staff etc.) will also be constructed to house some
of the emergency staff or on need basis.
► Open Areas: The open areas comprise of drive way, rain water harvesting pit and landscaped
areas including the facade and main entry of the TC. The size of the open area will depend on
the design strategy adopted by the CMC.
► Others: This will include canteen, parking, security room etc.
Page 155 of 242

► Basic amenities: Apart from the above facilities the campus will have basic amenities with
provision for;
 Drinking water
 Toilets
 Dining room as a hygienic area and place away from the work environment for rest
breaks and the consumption of food
 Change rooms to enable employees to change (e.g. uniforms or dirty work clothing) with
privacy and security. Such facility helps to reduces employee exposure to and potential
spread of contaminating substances used in work processes
 Personal storage for the secure and clean storage of personal belongings or clothing,
lockable where necessary
 Immediate availability of doctors, health supervisors and ambulance and sufficient first
aid kits
 Fire safety with smoke alarms to protect people against death and injury from fires.
Providing fire safety awareness to employees and conduct fire drill from time to time
 Fire assembly area in case of fire or natural calamity
 Dustbins with proper colour coding in green for organic, yellow for glass, white for paper,
grey for metal, blue for plastic, red for hazardous products
Table 29: Details of proposed infrastructure
Details Nos. Total Area (Sq. mt.)

Production Block 4,395
Stores 200
Raw material store 150
Trial Room 400
Heat Treatment 150
Tool Assembly 400
Machine Shop 1600
Metrology & Inspection 100
Production Office (Cabins, Documentation & others) 250
Rapid Prototyping Centre 150
Design Office 225
Entrance Lobby 60
Program Room 50
Meeting Room 50
Circulation and Stairs 500
Toilet Block 110
Training Block 6,738
Sn. Manager/HoD Room 54

1
Training Office
Manager Room 1 25
Reception & Counselling 100
Page 156 of 242


Faculty Room 200
Technical Information Centre 1 350
Multi-purpose hall for examination/drawing/reading
1 200
room
Classrooms 10 750
Labs 14 924
Language Lab 1 50
Workshops 1200
Incubation Centre 950
Placement Cell 25
Conference Room 35
Seminar Hall 250
Tool Store 25
Electrical Panel,House Keeping, Circulation 1500
Toilet 100
Admin Block 455
Director office with secretary 1 30

Board room 1 20
Purchase 1 10
Account 1 10
HR/Admin 1 10
Reception Area 1 50
IT server room 1 10
Sr. Manager 1 15
DGM 1 15
Manager 1 10
Toilet (Male and Female) 1 50
UPS/Electrical 1 10
Pantry 1 10
Examination control office 1 30
Staircase 50
Maintenance 1 10
Housekeeping 1 10
Circulation and wall 105
Canteen 814
Entrance 10
Dining 1 350
Kitchena and its accessories 1 100
Hand wash area 1 15
Preliminary washing 1 10
Dispensary 1 10
Stationary/Printer room 1 10
Boys common room 1 100
Girls common room 1 100
Staircase 25
Page 157 of 242


ATM 1 10
Circulation and wall 1 74
Others 225
Utilities Room - DG Set, Transformer, UPS 200
Security Room (incl toilet) 25
Total 12,627
► Hostel and staff accommodation: The hostel block will comprise of accommodation for
students enrolled under fulltime courses along with the hostel warden. It is proposed to
develop the hostel capacity for around 150 trainees and out of which around 50 will be
reserved for female trainees. The hostel building has been planned to be G + 3 structures
with provision for further vertical expansion depending on future requirements. Part of the
ground floor of the hostel building will be reserved for use as hostel office, other common
facilities etc. The space on rest of the floors will be developed as rooms for accommodation
of students. Also, an executive hostel has been planned for visiting guests, faculties etc. The
details of proposed hostel infrastructure have been given in the following table. Additionally,
six emergency staff quarters will also be constructed to house some of the key management
officials as per requirement. Initially the staff quarters block will be a G+1 structure with a
provision of further expanding it vertically depending on future requirements.
Table 30: Details of proposed infrastructure for hostel and staff quarters
Trainees Area per Total

Number of
Hostel Category Floors per trainees Area
trainees
Room (sq. mt.) (sq. mt.)
Hostel No.1 Boys G+3 4 96 12 1152
Hostel No.2 Girls G+3 4 50 16 800
Total 1.952
Number Area (sq mtrs)

G+2
Staff Qtrs (60sqmt/quarter)
150 8 576
Total 8 576
Note: All viable options will be studied to decide on the design of the proposed block for hostel
and staff quarters. The number of floors for these facility buildings and all other associated
details can be further finalised with the appointment of CMC for development of the campus for
TC.
As per the details of proposed infrastructure given in above two tables, the construction of the Bhopal
TC will include development of 15,155 {12,627+ 2,528 (staff Quarters and hostel)} square meter of
Page 158 of 242

built up area in total. Per square meter cost of construction has been estimated to be INR 29,000.
Further, the tentative cost for development of underground water tank, rain water harvesting
system, storm water drainage network, water treatment plant, sewage treatment plant, street
lighting, development of internal roads, landscaping and grey water treatment plant for entire
campus has been estimated to be around INR 950 lakhs. Towards development of boundary wall an
estimated cost of INR 250 lakhs has been provisioned. The detail for development of campus
infrastructures is as follows;
Table 31: Cost for development of campus infrastructures

Cost (in INR
SN Hostel
lakh)
1. Cost of development of build-up area @ 29,000 per sq. mt. for
4,395
15,155 sq. mt.
2. Underground water tank, rain water harvesting system, storm water
drainage network, water treatment plant, sewage treatment plant,
1200
street lighting, development of internal roads, landscaping and grey
water treatment plant and boundary wall
3. Total 5,595
4. Contingency @ 5% 280
Grand total 5,875
Further provisioning towards establishment of other associated infrastructure will be done for the
planned capacity and is listed in the following table:
Table 32: Details of other infrastructure
Budgeted Cost Total Cost

SN Other Infrastructure Nos.
(INR lakhs) (INR lakhs)
1 Office & Storage Furniture 60 0.5 30
2 Hostel Furniture 160 0.25 40
3 Canteen and Hostel Dining hall furniture 20 0.6 12
4 Kitchen equipment 2 20 40
5 Other Office equipment 50 1 50
6 Laptop 20 0.6 12
7 Desktop 40 0.5 20
8 Photocopier cum printer 6 2 12
9 Vehicle 2 12.5 25
Contd..
Page 159 of 242

Budgeted Cost Total Cost

SN Other Infrastructure Nos.
(INR lakhs) (INR lakhs)
17 Pre-Operative Expenses 258 258
18 Others (Miscellaneous) 1 50 50
Contingency 5% 27.5
Total 576.5
Above all, the development of campus infrastructure will be done keeping the following guidelines
in mind;
► Campus Layout/ Plan: Campus layout is crucial for successful performance of the TC. At least
30% green area will be maintained and landscaping will be done to improve aesthetics of the
surrounding while maintaining habitats conductive to natural fauna. Also, efforts will be made to
conserve existing vegetation and other rich biodiversity in the premises as well as vicinity. Apart
from this, there will be the following considerations while planning the campus layout:
 Site drainage: Existing drainage pattern of the available site will be studied and the drainage
system required for the TC will be constructed in line with the drainage pattern. Storm water
drain will be constructed separately so as avoid mixing of the fresh and the waste water.
 Heat island effect: Site will be planned properly to mitigate the heat island effect (Thermal
gradient difference between developed and undeveloped areas) by following measures:
 At least 40% of the non-roof impervious surfaces on the site (including parking lots and
walkways) will be shaded
 Pavements and walkways should be painted in light colour (solar reflectance index >
0.5)
 Boundary: The campus will be provided with boundary wall in all the directions to avoid
encroachment, theft and safety.
 Trees will be planted in large numbers to provide natural shade in the open areas. This helps
to reduce the temperature on campus in comparison to the vicinity
 Efforts will be made to utilize natural light to the maximum possible extent and provision
should be made for natural ventilation
 Green building codes may be adopted while designing the building layout so as to ensure
following environmental safeguards;
 Renewable energy in terms of solar water heater, solar panels, solar street light may
be used
 LED/CFL lights will be used within the premises to reduce the energy consumption
 Provisioning of water treatment and recycling facility to reduce water consumption
 Water harvesting arrangement to recharge the ground water and/or reduce
dependency on ground water
Page 160 of 242

 Provisioning of waste management including practices to minimize waste generation,

etc.
 Criteria mentioned in the National building code will be followed so as to ensure that all the
safety precaution like escape routes/emergency exits, setting of machinery providing
appropriate working space, etc. is maintained
 Hazardous material like asbestos sheets should be avoided in any part of the structure
 Substitutes to natural resources will be encouraged in appropriate ratio so as to decrease
natural resource consumption while maintaining the required strength (example: Fly ash may
be used in small percentage instead of cement for construction, composite material may be
used construction of doors instead of wood, etc.
 Provision of toilets for both men and women will be made in appropriate number so as to
ensure comfortable and hygienic working conditions
 Energy efficient products like 5 star rated air conditioner, refrigerator, energy efficient
motors, etc. will be used in the TC’s
► Detailed building plan preparation: The building design is crucial for sustainable performance of
the TCs. A number of factors including energy efficiency, materials of construction, natural light
and ventilation, insulating, etc. must be kept in mind in order to maintain eco-friendly operations.
Also, adherence to aspects related to safety like, resistant to earthquakes, proper evacuations,
etc. will ensure successful operations of the TC.
► Construction management: Construction at the site involves a number of activities. These
activities may lead to certain EHS impact on the existing natural settings and therefore,
appropriate mitigation measures will be required to be put in place so as to minimize or avoid this
impact. A snapshot of the issues with the basic principles to be kept in mind during construction
is given in the EHS section of this DPR.
Page 161 of 242

Expenditure pattern
Page 162 of 242

13. Expenditure pattern
13.1 Capital expenditure
Total capital expenditure will be to the tune of around INR 12,171 Lakhs for setting up of new TC at
Bhopal. Summary of the Capital Expenditure is provided as below:
Table 33: Capital expenditure

Capex( Inc. Contingency @5%) Cost (INR Lakhs)
Production Machinery and equipment 3,040
Training machines and equipment 2,680
Other infrastructure including pre-operative expenses 576
Building and construction 5,875
Total Capex including contingency 12,171
13.1.1 Plant and machinery
Total expenditure on machines to the tune of around INR 5,573 lakhs is envisaged for the setting up
of new TC at Bhopal.
Table 34: Plant & Machinery28

Capex INR Lakhs
Production Machinery and equipment 2,895
Training machines and equipment 2,553
Contingency @ 5% 272
Total for Plant and Machinery 5,720
The capital cost estimate for the proposed project has been prepared jointly by O/o DC-MSME and EY
team based on inputs from the following:
► Market opportunity assessment by EY team
► Stakeholders discussion in Bhopal
► Inputs from existing technology centres such as IGTR Indore
► Validation of technology needs by detailed discussions and site visits to key manufacturing
organisations
► Site visits and discussions with local industry and industry associations.
28
Details about plant machinery are in Chapter 10, section 10.1 and 10.2
Page 163 of 242

► Inputs from Office of DC MSME

► Inputs as per the World Bank Environment and Safety requirements
13.1.2 Building cost
Bhopal has around 20 acres of land available for setting up of the facility of the TC.29
Table 35: Building cost30

Cost (in INR
SN Hostel
lakhs)
1. Cost of development of build-up area @ 29,000 per sq. mt. for
4,395
15,155 sq. mt.
2. Underground water tank, rain water harvesting system, storm water
drainage network, water treatment plant, sewage treatment plant,
1200
street lighting, development of internal roads, landscaping and grey
water treatment plant and boundary wall
3. Total 5,595
4. Contingency @ 5% 280
Grand total 5,875
13.2 Operating expenditure
The operating expenditure for the TC has been classified into variable operating expenditure and
fixed operating expenditure.
13.2.1 Variable operating expenditure
Variable operating expenditure has four key heads. Expenditure under each head has been identified
for the key income streams:
a) Raw materials
► Raw materials for finished goods
► Raw materials for training
b) Consumable tools
► Consumable tools for finished goods
► Consumable tools for training
c) Consumable stores
29
Dy. Director of Industries Bhopal
30
Details about infrastructure and other areas are in Chapter 11
Page 164 of 242

► Consumable stores for finished goods

► Consumable stores for training
d) Utilities (electricity and water)
► Utilities for finished goods
► Utilities for training
Table 36: variable cost assumptions
Description Unit Norms

Variable operating cost
Raw material
RM for Finished goods % of FG 20.6%
RM for Training % of Trg 1.0%
Consumable tools - FG % of FG 2.5%
Consumable tools – Trg % of Trg 1.0%
Consumable stores – FG % of FG 2.0%
Consumable stores - Trg % of Trg 0.6%
Utilities
Electricity & water
FG % of FG 6.5%
JW % of JW 6.5%
Training % of Trg 4.9%
13.2.2 Fixed Operating expenditure
Fixed operating expenditure has four key heads. Expenditure under each head has been identified for
the key income streams:
a) Salary and wages/ establishment expenses

The salary expenses include salary for employees of proposed TC at Bhopal. There will be 60
employees on regular contract and ~ 170 will be on temporary contract/honorarium visiting.
b) Repairs and maintenance (R&M)

Cost of repair and maintenance has been calculated for
► Plant and machinery installed
R&M for plant and machinery has been taken as a percentage of the gross block in an
operating year.
► Buildings
R&M for plant and machinery has been taken as a percentage of the gross block in an
operating year,
Page 165 of 242

c) Training expenses
Training expenses primarily comprise of expenses incurred for external faculty visiting to the TC
from time to time as part of Short term and Long term trainings. These expenses typically
include faculty fees, hotel and transportation.
d) Other production and administration expenses

These include expenditure on heads like transportation/entry tax/ freight, Vehicle expenses,
Printing and stationery, traveling and conveyance, audit, consultancy, advertisement, publicity,
marketing, telephone, internet, bank charges, miscellaneous expenses. Expenditure under each
head has been identified for the key income streams- Finished goods and Training
e) Insurance of new plant and machinery

Insurance expense for new plant and machinery includes the insurance cost for the new
machinery to be installed. The same has been calculated as a percentage of the gross block of
new machines.
Table 37: Fixed Operating Cost assumptions
Description Unit Norms
Fixed Operating Cost
Salaries & Wages Detailed assumptions given in a separate table
R&M (Plant & Mach) % of Plant 1.0%
R&M (Building) % of Building 1.7%
Training Expenses 10%
Other Prdnn. & Admin. Exps %of income 8%
Insurance cost (New P&M) % of P&M 0.5%
Marketing expenses (1st year) Rs. Lakhs p.a 25
Marketing expenses (2 year onward) Rs. Lakhs p.a 15
Page 166 of 242

► Manpower and salary cost

Manpower numbers have been designed in line with the expansion plan of the TC and ramp up of the production, training and consultancy. Manpower
salary numbers are in line with the salary structure of existing TCs
Table 38: Manpower and salary assumptions

Monthly
Top Management Designation salary Nos.
(INR)
GM 1,53,861 1 1 1 1 1 1 1 1 1 1 1 1
DGM 1,29,327 1 1 1 1 1 1 1
Sub Total 1 1 1 1 1 2 2 2 2 2 2 2
Management and Support staff
Manager Admin.
69,204 1 1 1 1 1 1 1 1 1 1 1 1
and Accounting
Sr. Officer HR 62,371 1 1 1 1 1 1 1
Administration and
Officer
accounting 35,744 1 1 1 1 1 1 1 1 1 1
Procurement
Officer Store 35,744 1 1 2 2 2 2 2 2 2 2 2
Officer Admin 35,744 1 1 1 1 1 1 1 1 1 1 1
Senior manager 86,857 1 1 1 1 1 1 1 1 1 1 1
Design and consultancy Manager 82,777 2 2 3 3 3 3 3 3 3 3
Sr. Engg. 64,806 2 3 3 3 3 3 3 3 3 3
Senior Manager 86,857 1 1 1 1 1 1 1 1 1 1 1
Production Manager
82,777 1 1 2 2 2 2 2 2 2 2
Prod./Planning
Page 167 of 242

Monthly
(INR)
Manager Metrology 82,777 1 1 1 1 1 1 1 1 1 1
Manager H/T 82,777 1 1 1 1 1 1 1 1 1 1
Manager
82,777 1 1 1 1 1 1 1 1 1 1 1
Maintenance
Sr. engg.
64,806 1 1 1 1 1 1 1 1
Maintenance
Sr. Engg.
64,806 3 3 3 3 3 3 3 3 3 3 3
Production
Engg. / Foreman 34,240 2 4 6 6 6 6 6 6 6 6 6
Senior Technician 29,512 1 2 2 2 2 2 2 2 2 2 2
Senior Technician
Maintenance (Mech 29,512 1 1 2 2 2 2 2 2 2 2 2
+ Elect)
Senior Manager 86,857 1 1 1 1 1 1 1 1 1 1 1

Manager
82,777 1 1 1 1 1 1 1 1 1 1
Mechanical
Training Manager
82,777 1 1 1 1 1 1 1 1 1 1
Electronics
Manager Short
82,777 1 1 1 1 1 1 1
term
Page 168 of 242

Monthly
(INR)
Sr. Engg. 64,806 1 5 6 6 6 6 6 6 6 6 6
Engg. 34,240 1 4 8 10 10 10 10 10 10 10 10
Senior Technician 29,512 1 2 2 2 2 2 2 2 2 2 2
Manager Marketing 82,777 1 1 1 1 1 1 1 1 1 1 1 1
Sales and marketing
Officer Sales 35,744 1 1 1 1 1 1 1 1 1 1
Manager IC 82,777 1 1 1 1 1 1 1 1 1 1 1
Incubation Centre
Officer IC 35,744 1 1 1 1 1 1 1 1 1 1
Total (Mgt & Support
2 19 42 50 56 58 58 58 58 58 58 58
staff)
Number of employees on temporary contract
Training 15,000
- 3 21 34 55 68 85 100 114 128 128 128
Contractual
Employees 10,000 4 10 10 10 12 12 12 12 12 12
(Production)
employees on
3 25 44 65 78 97 112 126 140 140 140
temporary contract
Page 169 of 242

Financial Analysis
Page 170 of 242

14. Financial analysis
14.1 Key assumptions

Project construction and commencement of operations
The project construction is expected to start in the financial year 2016-17. It is assumed that, the
construction period and installation of machines shall be completed in 15 months. Full-scale
operations will commence at the end of the construction period of 15 months.
Table 39: Key assumptions

Start of Project 1-Dec-16
Construction period (Months) 15
Commencement of operation, date 1-March-18
Number of years, useful life of machines and equipment (as per depreciation
10
rules)
Maximum days of operation in a year 300
14.1.1 Income assumptions
► Production
Table 40: Production assumptions
Estimated Machine
S.N. Machine
Rate/Hour* Shift Hours
Advanced Machines
1800 2 16
1 CNC VMC-5 axis
1500 2 16
2 CNC VMC-3 axis
1000 2 16
3 CNC 3 axis Milling Machine
500 2 16
4 CNC Lathe
1500 3 24
5 CNC Wire Cut EDM Machine
750 3 24
6 CNC EDM Die Sinking Machine
7 Injection Moulding machine 500 2 16
8 Additive Manufacturing/3D printing/RPT 750 2 16
9 3D Scanner 500 2 16
10 CNC Coordinate Measuring Machine 500 2 16
11 Vacuum Heat Treatment Furnace 1000 2 16
Conventional Machines
250 2 16
12 Conventional Milling
Page 171 of 242

Estimated Machine
S.N. Machine
Rate/Hour* Shift Hours
200 2 16
13 Conventional Lathe
150 2 16
14 Radial drill machine
400 2 16
15 Surface Grinding
Supporting machines and Labs
400 2 16
16 Cyclindrical Grinding
800 2 16
17 Hydraulic press
600 2 16
18 Mechanical Press
500 2 16
19 CAD/CAM Softwares CATIA, UG etc
Machine utilisation Year

2nd year of production 2019-20 25%
rd
3 year of production 2020-21 40%
4th year of production 2021-22 50%
5th year of production 2022-23 60%
th
6 year of production 2023-24 70%
year on year increase in machine utilisation and machine hour rate
7th year onwards 2024-25 10%
Page 172 of 242

► Training revenue assumptions

Table 41: Training revenue assumptions
Durati
No. of
N on Batc Annual
Specialisation Course name FEES Batch/
o. (mont h size intake
In ‘000 year
hs)
Advanced Diploma in
Tool & Die making 140 48 60 1 60
Certificate course in
Machinist 40 24 30 1 30

Design 50 18 30 2 60

Manufacturing 50 12 30 2 60
Post Diploma in CNC-

Prog & Op 35 12 30 2 60
Post Diploma CAE

(manufacturing) 60 12 30 2 60
Tool Room Adv. Certificate Course in

1 Tool Design & CAD/CAM 60 12 30 2 60
Adv. Certificate Course

Tool & Die Manufacturing 60 12 30 2 60
Certificate Course in Tool

& Die Making 40 12 30 2 60
Fitter 12 6 20 4 80
Master Certificate Course

in Tool Design 40 12 30 6 180
Certificate Course in
Machine Tool Operations
(Conventional L,M,G) 30 3 30 4 120
Master of CAD/CAM/CNC 20 6 30 6 180
2 Maintenance mechanical 15 3 30 4 120
Maintenance Technician 10 3 30 4 120
Page 173 of 242

Durati
No. of
N on Batc Annual
In ‘000 year
hs)
mechanical (Part Time) 18 6 25 2 50
Machine Maintenance 30 12 30 2 60
Diploma in Design,
Manufacturing &
Maintenance 25 6 30 4 120
Maintenance Technician
(Part Time) 12 6 25 2 50
Adv. Certificate Course

CNC Machining
(L,M,WC,EDM) 60 12 30 2 60
Certificate Course CNC

Machining (Turn &
Milling) 40 12 30 2 60
Metrology & QC 30 12 30 4 120
Master Certificate Course

in Computer Aided Tool
Engineering 40 6 30 6 180
CNC
3 Manufacturing CNC lathe programming
, CAD/CAM and operation (Full Time) 10 2 30 6 180
CNC lathe programming

and operation (Part Time) 10 4 30 6 180
CNC Milling Prog and

Operation (Full Time) 10 2 30 6 180
CNC Milling Prog and

Operation (Part Time) 10 4 30 6 180
CNC Turning 5 1 30 12 360
CNC Milling 5 1 30 12 360
CAD/CAM/CNC
ENGINEER (Full Time) 10 2 20 6 120
Page 174 of 242

Durati
No. of
N on Batc Annual
In ‘000 year
hs)
CAD/CAM/CNC
ENGINEER (Part Time) 12 4 30 6 180
CAD Modelling with

different softwares (Full
Time) 8 1 20 12 240
CAD Modelling with

different softwares (Part
Time) 7 2 30 12 360
Computer Integrated
Manufacturing (CIM) 8 1 30 12 360
Basic Arc and Gas

welding (Full Time) 10 3 25 4 100
Basic Arc and Gas

welding (Part Time) 12 6 20 4 80
TIG welding (Full Time) 6 1.5 25 4 100
TIG welding (Part Time) 6 3 20 8 160
MiG welding (Full Time) 6 1.5 25 8 200
MiG welding (Part Time) 6 3 20 8 160
Spot Welding (Full Time) 8 1.5 25 2 50
Spot Welding (Part Time) 8 3 20 4 80
Basic computer and

Hardware (Part Time - 4
Electronics hrs) 8 2 30 12 360
5 and IT Advanced Hardware &

Networking (Part Time - 4
hrs) 12 4 30 6 180
Page 175 of 242

Durati
No. of
N on Batc Annual
In ‘000 year
hs)
VLSI Design 5 1 30 12 360
Embedded System Design 5 1 30 12 360
Electronics Maintenance 4 2 20 6 120
Field Instrumentation &

Controls 5 2 20 6 120
SCADA 5 2 30 6 180
Power Electronics and

Industrial Drives 5 2 30 6 180
Certificate course in
Industrial Automation
(Part Time - 4hrs) 18 4 30 4 120
Diploma in Industrial
Automation 20 6 30 2 60
Solar energy system
technician 8 3 20 4 80
Industrial Hydraulics 6 1 30 12 360
Industrial pneumatics 6 1 30 12 360
Industrial and
process PLC Programming 6 1 30 12 360
6
Automation
Automation Technician 12 4 30 4 120
Industrial automation
design 15 4 30 4 120
Diploma in Mechatronics 120 36 40 1 40
Page 176 of 242

► Consultancy revenue assumptions

Revenue from consultancy is expected to start from 1st year of operation i.e. 2018-19, however full-fledged revenue will start from the year 2019-2010
when the TC is fully operational and all infrastructures are in place.
Table 42: Consultancy revenue assumptions

S. No Consulting Areas Suggestive Suggestive Suggestive Suggestive Suggestive Suggestive Suggestive Suggestive Suggestive Suggestive
Rev Rev Rev Rev Rev Rev Rev Rev Rev Rev
Year 1 (INR Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
lacs) (INR lacs) (INR lacs) (INR lacs) (INR lacs) (INR lacs) (INR lacs) (INR lacs) (INR lacs) (INR lacs)
1. Design Support
(incl. Product 5 7.5 11.3 16.9 25.3 38.0 57.0 85.4 128.1 192.2
Design)
2. Engineering
Solutions
(Development of
1.5 2.3 3.4 5.1 7.6 11.4 17.1 25.6 38.4
Jigs & Fixtures
for Machining,
Welding, etc.)
3. Quality System
1.0 1.5 2.3 3.4 5.1 7.6 11.4 17.1 25.6
Support
4. Project
Consultancy
(curriculum 1.0 1.5 2.3 3.4 5.1 7.6 11.4 17.1 25.6
development,
community
Page 177 of 242

colleges, trainers,
etc.)
5. Low cost
Automation 3.0 4.5 6.8 10.1 15.2 22.8 34.2 51.3 76.9
Solution Support
6. Productivity
2.5 3.8 5.6 8.4 12.7 19.0 28.5 42.7 64.1
Improvement
7. Other Consulting
2.5 3.8 5.6 8.4 12.7 19.0 28.5 42.7 64.1
assignments
Total 5 19.0 28.5 42.8 64.1 96.2 144.3 216.4 324.6 486.9
Page 178 of 242

14.1.2 Project cost and financing
The project construction will be undertaken in a phased manner. The initial phase will be of about 7
months and final phase will be of about 8 months. Phase 1 is expected to be completed in 2017-18,
while phase 2 is expected to get completed by 2018-19. In the initial phase, construction of
infrastructure for basic training courses is planned along with procurement of basic machines.
Table 43: Project cost and financing

Project cost and phasing In lakhs
Particulars 2016-17 2017-18
Project Cost 1,613 10,558
Total 12,171
14.1.3 Other financial assumptions

Terminal value assumptions:
Discount rate 9.25%
Growth rate in perpetuity 5.0%
Cost of equity 9.25%
Repair & maintenance (of P&M) 1.0%

Repair & maintenance (of Building) 1.7%
Post commissioning Insurance cost of new P&M (of P&M &
0.5%
building)
Working Capital Assumptions

Cash in Hand Days 60
Accounts Receivables Days 90
Suppliers Credit (A/P) Days 30
Finished goods Storage Days 30
Inventories (RM, Consumables)
Finished goods Days 90
Training Days 90
Inflation (Salary etc.) 10%
Page 179 of 242

Depreciation Rates
Max
Asset Class WDV Depreciation
Tangible Assets
Plant and machinery 13.91% 95.00%
Buildings 10.00% 95.00%
Page 180 of 242

Working capital and cash flow statement
Overall net working capital requirement for the TC is expected to grow from about INR 28 lakhs in
year 0 to INR 580 lakhs by year 8.
Figure 26: Net working capital requirement
Net Working Capital Requirement (INR. Lakhs)

700
588
600 504
500 437
382
400 320
262
300
204
200 125
100 28
-
Year 0 Year 1 Year 2 Year 3 Year4 Year 5 Year 6 Year 7 Year 8
Figure 27: Cash flow closing balance
Cash Flow closing balance

4,000
3,365
3,500
3,000
2,603
2,500
1,969
2,000
1,391
1,500
912
1,000
524
500 119 222
49
0
Year 0 Year 1 Year 2 Year 3 Year4 Year 5 Year 6 Year 7 Year 8
Page 181 of 242

Table 44: Working capital schedule

Working Capital Schedule - With TCSP
Year
Years
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 10
INR Lakhs
Raw Material Storages
Finished goods - 3 13 21 26 32 37 41 45 49 54
Training 0.28 1 1 2 3 3 4 4 4 4 5
Consumable tools
Finished goods - 0 2 3 3 4 4 5 5 6 7
Training 0.28 1 1 2 3 3 4 4 4 4 5
Consumable stores
Finished goods - 0 1 2 3 3 4 4 4 5 5
Training 0.16 1 1 1 2 2 2 2 2 2 3
Finished Product Storages
Finished goods - 5 21 34 43 51 60 66 72 80 87
Accounts Receivables 0.25 17 86 145 190 236 284 330 387 459 552
Gross Working Capital 0.96 29 127 210 272 334 398 455 524 610 717
Suppliers Credit 0.24 0 2 7 10 13 16 18 20 22 24
Net Working Capital Requirement 0.72 28 125 204 262 320 382 437 504 588 693
Page 182 of 242

Table 45: Cash flow statement

Cash Flow
Construction
Years
Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
INR Lakhs
Income post
Depreciation -27 -248 -1,691 -1,290 -899 -592 -394 -200 -23 123 334 590
Add: Depreciation 161 1,391 1,226 1,080 953 841 742 655 579 512 453
Inflow from capital fund 1,613 10,558
Capital fund to balance
-ve cash flows, if any 30 160 300 230
Total Cash Inflow 1,616 10,631 1 166 181 361 446 542 632 701 845 1,043
Investment in Assets 1,613 10,558
Net Change in WC 1 28 97 79 58 59 62 55 67 84 105
Total Cash Outflow 1,613 10,558 28 97 79 58 59 62 55 67 84 105
Opening Balance 3 76 49 119 222 524 912 1,391 1,969 2,603 3,365
Surplus/Deficit 3 73 -27 70 103 303 387 480 578 634 762 937
Closing Balance 3 76 49 119 222 524 912 1,391 1,969 2,603 3,365 4,302
Page 183 of 242

14.2 Income & expenditure statement
The focus of Bhopal TC will be skill development for providing skilled worker to MSMEs. The income to the proposed centre from training will start
accruing from second year of construction period with completion of phase 1 (basic training infrastructure and procurement of basic machines) and start
of basic courses. Initially an income of around INR 117 lakhs is expected in second year of construction period . Once the overall construction is complete,
the TC revenue is expected to grow from INR 439 lakhs in Year 1 to INR 3,455 lakhs by Year 10.
Table 46: Income and expenditure
Income and Expenditure

Year Construction Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
INR Lakhs
Income
Training Income 91 287 478 717 957 1,052 1,157 1,273 1,337 1,404 1,474
Sale of Finished goods 53 213 341 427 512 597 657 723 795 875
Sale of Scrap 0.8 4 9 14 18 20 23 25 27 29 32
Consultancy Income - - 64 127 188 253 327 417 539 706 934
Total Income 92 344 765 1,200 1,589 1,838 2,105 2,373 2,626 2,934 3,314
Expenditure
Variable Operating
expenditure
Raw materials 1 14 49 78 98 116 135 148 163 178 195
Finished goods 11 44 70 88 105 123 135 149 164 180
Training 1 3 5 7 10 11 12 13 14 14 15
Consumable tools 1 4 10 16 21 24 27 30 32 35 37
Finished goods 1 5 9 11 13 15 16 18 20 22
Training 1 3 5 8 10 11 12 13 14 15 15
Consumable stores 1 3 7 11 14 16 19 21 22 24 26
Page 184 of 242

Income and Expenditure

Year Construction Period Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Finished goods 1 4 7 9 10 12 13 14 16 17
Training 1 2 3 4 6 6 7 7 8 8 9
Utilities (Electricity &
water) 4 18 37 57 75 85 96 105 113 121 129
Finished goods 3 14 22 28 33 39 43 47 52 57
Training 4 14 24 35 47 52 57 63 66 69 72
Variable Operating
expenditure 7 39 104 162 207 241 276 304 330 358 388
Fixed Operating
Expenditure
Salary & Wages/
Establishment expenses 27 146 336 414 488 599 698 804 921 1,054 1,160 1,276
Repairs and Maintenance 162 162 162 162 162 162 162 162 162 162
P&M 57 57 57 57 57 57 57 57 57 57
Buildings 104 104 104 104 104 104 104 104 104 104
Training Expenses 29 48 72 96 105 116 127 134 140 147
Other Production. &
Admin. Expenditure 27 59 93 123 142 163 184 203 227 257
Marketing expenses 25 25 15 15 15 15 15 15 15 15 15
Insurance of new
machines 27 27 27 27 27 27 27 27 27 27
Fixed Operating
Expenditure 27 171 605 725 856 1,021 1,150 1,287 1,436 1,595 1,731 1,884
Total Expenditure 27 178 643 829 1,019 1,228 1,391 1,563 1,741 1,925 2,089 2,272
Income (Gross income) (27) (86) (299) (64) 181 361 446 542 632 701 845 1,043
Depreciation - 161 1,391 1,226 1,080 953 841 742 655 579 512 453
Income post Depreciation (27) (248) (1,691) (1,290) (899) (592) (394) (200) -23 123 334 590
Page 185 of 242

14.3 Balance sheet
Table 47: Balance sheet

Balance Sheet
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
Construction
Years Period
INR Lakhs
Liabilities
Capital fund 1,613 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170
Capital for -ve 30 190 490 720 720 720 720 720 720 720 720 720
cashflows
Reserves & (27) (274) (1,965) (3,255) (4,154) (4,746) (5,140) (5,341) (5,363) (5,241) (4,907) (4,317)
Surplus
Total 1,616 12,086 10,695 9,636 8,737 8,144 7,750 7,550 7,527 7,650 7,983 8,573
Assets
Fixed Assets 1,613 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170 12,170
Net Block 1,613 12,009 10,618 9,392 8,312 7,359 6,518 5,776 5,121 4,542 4,030 3,578
Cash 3 76 49 119 222 524 912 1,391 1,969 2,603 3,365 4,302
Current Assets - 0.7 28 125 204 262 320 382 437 504 588 693
Total 1,616 12,086 10,695 9,636 8,737 8,144 7,750 7,550 7,527 7,650 7,983 8,573
Page 186 of 242

14.4 Profitability
Overall project profitability has been estimated considering phased investment in plant & machinery
and infrastructure. The full-fledged operations are expected to start from the year 2018-19. Hence
the project IRR for a period of 12 years till 2027-28 is 8.2%.
Table 48: Profitability with investment plant & machinery

Project IRR 8.2%
Payback period >11 years
The project is expected to generate positive net free cash flows starting year 2020-21.
Figure 28: Net free Cash flows and Cumulative Cash flows
Net free Cash flows

2,000
(327) (160) 578 634 762
(1,640) 103 303 387 480
0
Year Year Year Year Year Year Year Year Year Year Year
(2,000) 0 1 2 3 4 5 6 7 8 9 10
(4,000)
(6,000)
(8,000)
(10,000)
(10,645)
(12,000)
0
Year Year Year Year Year Year Year Year Year Year Year
0 1 2 3 4 5 6 7 8 9 10
(2,000)
(4,000)
(6,000)
(8,000)
(10,000)
(12,000)
(14,000) Cummulative Cash flows
Page 187 of 242

14.5 Sensitivity analysis

Sensitivity analysis of Project IRR has been carried out with respect to the key project parameters.
► Project cost
► Revenue from Training
► Revenue from production
► Revenue from Consultancy
The project IRR is most sensitive to changes in training revenue, followed by changes in project cost,
production revenue and consultancy revenue.
Training forms majority of revenue for the TC followed by production and consultancy.
5 percent increase/decrease in training revenue increases / decreases the project IRR by about
0.67%.
5 percent increase/decrease in project cost decreases/ increases the project IRR by about 0.53%
5 percent increase/decrease in consultancy revenue increases / decreases the project IRR by about
0.46%.
Production being the lowest contributor to revenue has the lowest impact on project sensitivity. 5
percent increase/decrease in production revenue increases / decreases the project IRR by about
0.32%.
Table 49: Sensitivity of IRR
Construction Construction
period (15 period (15
Months) Months)10.9%
-5% 8.8% Increase in -5% 7.7%

Increase in Project Consultancy
cost 0% 8.2% revenue 0% 8.2%
5% 7.7% 5% 8.7%
10% 7.2% 10% 9.1%
Increase in -7.5% Increase in -10%

7.0% 7.5%
Training revenue Production
-5% -5%
7.4% revenue 7.9%
0% 0%
8.2% 8.2%
5% 9.0% 5% 8.5%
10% 9.7% 10%
8.8%
Page 188 of 242

Environment, Health and

Safety
Page 189 of 242

15. Environment, health and safety

Effective management of environmental, health, and safety (EHS) issues entails the inclusion of EHS
considerations at various levels during project implementation. It is proposed that World Bank EHS
guidelines will be followed to adhere to the desirable performance levels and measures while
developing the TC.
15.1. Environment
15.1.1. Air emissions
The expected manufacturing processes in the proposed TC with air emissions would be sintering,
metal cutting, grinding and / or forming (including forging, wire drawing, pressing, stamping, among
others), quenching, annealing and other general treatments, abrasive treatments (e.g. shot, sand
blasting), solvent degreasing and emulsion, alkaline, and acid cleaning, welding, anodizing, chemical
conversion coating, electroplating, painting and other metal finishing techniques (Including polishing,
hot dip coating). To counter the problems, the following techniques will be used:
► Volatile Organic Compounds (VOC) emissions management strategies will be used which
include:
 Installation of refrigerator coils (or additional coils) above the degreaser vapour zone
 Application of an air flow over the top of the degreaser that should not typically exceed 40
m / minute
 Rotation of parts before removal from the vapour degreaser, including:
 Installation of thermostatic heating controls on solvent reservoirs and tanks
 Installation of in-line filters to prevent particulate build- up
 Use of solvent recovery to reduce emissions of VOC from curing ovens
 Use of activated carbons to recover solvent vapours

 In order to reduce emissions during welding and coating, metal surfaces would be carefully
cleaned
 Coatings would be removed from the base metal before welding preferably using mechanical
cleaning (for example blasting with CO2-pellets) instead of solvents.  
► Dust: Dust emissions management strategies will be used which include:
 Installation of in-line aspirators with filters or scrubbers. Electrostatic precipitators (ESP) will
also be employed
 Where possible, maintaining wetness on the metal surface in order to prevent or minimize
dust production
► Acid / Metals Content in Mists and Fumes: Management strategies for acid / metal content in
mist and fume emissions will be used which include:
 Use of fume suppressants as additives to electroplating baths to reduce air emissions of
Page 190 of 242

electroplated metals (e.g. chromium) 

 -line aspirators with filters to eliminate acid compounds

metals 

controlled by removing coatings from base metals
15.1.2. Wastewater and liquid wastes
Typical sources of wastewater discharged from product manufacturing process in the proposed TC
would include water-based cleaning and rinsing streams, cooling water, alternative cleaners,
wastewater generated from cutting, blasting, deburring and mass finishing activities and water-based
metalworking fluid operations. To counter the problems, the following techniques will be used:
► Oil-based Effluents
 Effluent separation from wastewater, and special disposal will be done if recycling is not
possible
 Standardization of use of oil types, and efficient scheduling of processes that require use of
varying oil types
 Extension of the life of cooling liquid through use of centrifuges, introduction of periodical
analyses, use of biocides and ultrafiltration, and removal of oils by disk or belt skimmers.
 Appropriate housekeeping techniques to prevent cutting oils from being contaminated with
solvents will be used
 Oil quench baths would be recycled by filtering out metals
 Metal-working fluids would be recovered using collection (or drip) pans under functional
machinery;
 In cold forming or other processes where oil is used,  automatic oilers would be used to
reduce grease accumulation. A stamping lubricant suitable for conditions leading up to
thermal treatment processes would be taken into consideration.
► Solvent and Water-based Effluents
 Solvents would be carefully managed to prevent spills and fugitive emissions 
 petroleum solvents, vegetable cleaning agents, VCA,
supercritical CO2 or alkali washes) would be considered, in addition to the use of counter
current solvent cleaning (two-stage: first cleaning with dirty solvent, followed by fresh
solvent); Aqueous non-VOC-containing alkali washes would be used for metal cleaning
whenever possible. Some of these can be regenerated by microfiltration  
 -degreasing solvents would be recycled on site, reusing batch stills and waste solvents
 Cold cleaning with recycled mineral spirits would be implemented before final vapour
degreasing
Page 191 of 242

 Acids in wastewaters would be recovered through evaporation;

 Rinse contamination would be reduced via drag-out by optimization of part operation, using
surfactants and other wetting agents;
 Mechanical cleaning techniques would be used instead of chemicals where possible (e.g. a
vibrating abrasion apparatus for brass rather than acid pickling; mechanical scraping instead
of acid solution to remove oxides of titanium; and rotating brush machines with pumice to
clean copper sheets);
 Concentrations of dissolved metal ions would be controlled and reduced (e.g. molybdenum
concentration reduction through reverse osmosis / precipitation systems; use of non-
chromate solutions for alkaline etch cleaning of wrought aluminum; use of sulfuric acid /
hydrogen peroxide dip instead of cyanide and chromic acid dip for copper- bright dipping
process)
 Acid or alkaline pickling solutions would be replaced, if possible, with alternative cleaning
agents (e.g. use of caustic wire cleaner with biodegradable detergent and use of linear
alcohols instead of sulfuric acid to pickle copper wire, provided that adequate safety and fire
prevention is implemented)
 Flow restrictors / control meters would be installed and a foot pump (or photo sensor for
automatic lines) would be used to activate rinse
 Process wastewaters would be treated and recycled, using ion exchange, reverse osmosis,
electrolysis, and electro dialysis with ion exchange.
► Surface Treatment / Finishing Wastewater:
 Strong agents and toxic surfactants would be substituted by less hazardous alternatives;
 Anodizing and alkaline silking baths would be regenerated by recuperation of metallic (e.g.
aluminum) salts through use of hydrolysis of sodium aluminate;
 Stocks of finishing material would be limited with short shelf lives;
 Painting jobs (light to dark) and the selection of spraying  techniques would minimize
wastewater production (e.g. use of a spray gun for particular applications, use of an
electrostatic finishing system instead of conventional air spray);
 The use of chlorinated solvents would be avoided and substituted (including carbon
tetrachloride, methylene chloride, 1,1,1- trichloroethane, and perchloroethylene) with non-
toxic or less toxic solvents as cleaning agents;
 Chromic acid and trisodium phosphate would be substituted by less toxic and non-fuming
cleaners (e.g. sulfuric acid and hydrogen peroxide), and cyanide cleaners would be
substituted by ammonia;
 Less toxic bath components would be used (e.g. zinc in place of cadmium in alkaline / saline
solutions; nitric or hydrochloric acids in place of cyanide in certain plating baths; zinc chloride
in place of zinc cyanide);
Page 192 of 242

 Drain boards, drip guards, drip bars, and dedicated drag out tanks would be installed, after
process baths.
► Metals in Wastewater:  
 The management of water consumption is crucial, as it also reduces the usage of raw
materials and their loss to the environment. Good process control and drag-out reduction are
key factors to reduce the consumption of hazardous raw materials;
 Wastewaters with recoverable metals would be separated from other wastewater streams.
Metals would be recovered from solution (e.g. using electrolytic cells or hydroxide
precipitation);
 Used metal pickling baths would be sent to a continuous electrolysis process for regeneration
and metal recovery;
 Metals from bright dipping solutions would be recovered using suitable processes (e.g. ion
exchange system for copper, or segregating phosphates from treatment of aluminum based
alloys);
 Solutions containing cyanide salts (e.g. for hardening processes) would be replaced with
solutions using a fluidized bath of nitrogen and corundum;
 Hexavalent chromium would be substituted for plating. If this is not possible closed loops and
covered vats would serve to minimize emissions.  
► Process Wastewater Treatment: Since general manufacturing operations, including metals,
plastics and rubber products use a myriad of raw materials, chemicals and processes,
wastewater treatment will require the use of unit operations specific to the manufacturing
process in use.  Techniques for treating industrial process wastewater in this sector include
source segregation and pre-treatment of concentrated wastewater streams. Typical wastewater
treatment steps include:
 Greasing of traps, skimmers, dissolved air floatation or oil water separators for separation of
oils and floatable solids
 Filtration for separation of filterable solids
 Flow and load equalization
 Sedimentation for suspended solids reduction using clarifiers
 Biological treatment, typically aerobic treatment, for reduction of soluble organic matter
(BOD)
 Biological nutrient removal for reduction in nitrogen and phosphorus
 Chlorination of effluent when disinfection is required
 Dewatering and disposal of residuals in designated hazardous waste landfills.
15.1.3. Waste water management
Page 193 of 242

Wastewater management would include water conservation, wastewater treatment, storm water
management, and wastewater and water quality monitoring.
► Industrial Wastewater: Industrial wastewater generated from industrial operations includes
process wastewater, wastewater from utility operations, runoff from process and materials
staging areas, and miscellaneous activities including wastewater from laboratories, equipment
maintenance shops, etc.
Process Wastewater: Adequate treatment technology will be used to achieve the desired
discharge quality and to maintain consistent compliance with regulatory requirements. The
design and operation of the selected wastewater treatment technologies will be done to avoid
uncontrolled air emissions of volatile chemicals from wastewaters. Residuals from industrial
wastewater treatment operations will be disposed in compliance with local regulatory
requirements or will be consistent with protection of public health and safety, and conservation
and long term sustainability of water and land resources.
► Wastewater from Utilities Operations: Utility operations such as cooling towers and
demineralization systems in the TC may result in high rates of water consumption, as well as the
potential release of high temperature water containing high dissolved solids, residues of
biocides, residues of other cooling system anti-fouling agents, etc. Water management
strategies for utility operations will be used which include:
 Adoption of water conservation opportunities for facility cooling systems
 Use of heat recovery methods (also energy efficiency improvements) or other cooling
methods to reduce the temperature of heated water prior to discharge to ensure the
discharge water temperature does not result in an increase greater than 3°C of ambient
temperature at the edge of a scientifically established mixing zone which takes into account
ambient water quality, receiving water use, potential receptors and assimilative capacity
among other considerations;
 Minimize use of antifouling and corrosion inhibiting chemicals to ensure appropriate depth of
water intake and use of screens. Least hazardous alternatives would be used with regards to
toxicity, biodegradability, bioavailability, and bioaccumulation potential. Dose applied would
accord with local regulatory requirements and manufacturer recommendations;
 Testing for residual biocides and other pollutants of concern would be conducted to
determine the need for dose adjustments or treatment of cooling water prior to discharge.
► Storm Water Management: Storm water includes any surface runoff and flows resulting from
precipitation, drainage or other sources. Typically, storm water runoff contains suspended
sediments, metals, petroleum hydrocarbons, Polycyclic Aromatic Hydrocarbons (PAHs),
coliform, etc. Rapid runoff, even of uncontaminated storm water, also degrades the quality of
the receiving water by eroding streambeds and banks. In order to reduce the need for storm
water treatment, the following principles would be applied:
 Storm water would be separated from process and sanitary wastewater streams in order to
Page 194 of 242

reduce the volume of wastewater to be treated prior to discharge

 Surface runoff from process areas or potential sources of contamination would be prevented
 Where this approach is not practical, runoff from process and storage areas would be
segregated from potentially less contaminated runoff
 Runoff from areas without potential sources of contamination would be minimized (e.g. by
minimizing the area of impermeable surfaces) and the peak discharge rate would be reduced
(e.g. by using vegetated swales and retention ponds)
 Where storm water treatment is deemed necessary to protect  the quality of receiving water
bodies, priority would be given to manage and treat the first flush of storm water runoff
where the majority of potential contaminants tend to be present;
 When water quality criteria allows, storm water would be managed as a resource, either for
groundwater recharge or for meeting water needs at the facility;
 Oil water separators and grease traps would be installed and maintained as appropriate at
refueling facilities, workshops, parking areas, fuel storage and containment areas.
 Sludge from storm water catchments or collection and treatment systems will contain
elevated levels of pollutants and would be disposed in compliance with local regulatory
requirements, in the absence of which disposal has to be consistent with protection of public
health and safety , and conservation and long term sustainability of water and land resources.
► Sanitary Wastewater: Sanitary wastewater from industrial facilities includes effluents from
domestic sewage, food service, and laundry facilities serving site employees. Miscellaneous
wastewater from laboratories, medical infirmaries, and water softening etc. can also be
discharged to the sanitary wastewater treatment system. Sanitary wastewater management
strategies will be used which include:
 Segregation of wastewater streams to ensure compatibility with selected treatment option
(e.g. septic system which can only accept domestic sewage)
 Segregation and pre-treatment of oil and grease containing effluents (e.g. use of a grease
trap) prior to discharge into sewer systems
 If sewage from the industrial facility is to be discharged to surface water, treatment to meet
national or local standards for sanitary wastewater discharges or, in their absence, the
indicative guideline values applicable to sanitary wastewater would be met
 If sewage from the industrial facility is to be discharged to either a septic system, or where
land is used as part of the treatment system, treatment to meet applicable national or local
standards for sanitary wastewater discharges will be done.
 Sludge from sanitary wastewater treatment systems would be disposed in compliance with
local regulatory requirements, in the absence of which disposal has to be consistent with
protection of public health and safety , and conservation and long term sustainability of water
and land resources.
Page 195 of 242

15.1.4. Solid waste management
The TC will establish waste management priorities at the outset of activities based on the
understanding of potential Environmental, Health, and Safety (EHS) risks and impact and considering
waste generation and its consequences. The TC will do the following with respect to the same;
► Establish a waste management hierarchy that considers prevention, reduction, reuse, recovery,
recycling, removal and finally disposal of wastes.
► Avoid or minimize the generation of waste materials, as far as practicable
► Minimize, recover and reuse waste where waste generation cannot be avoided
► Treat, destroy and dispose waste in an environmentally sound manner where waste cannot be
recovered or reused
The manufacturing and related operations (e.g. wastewater treatments or fume reduction) will
generate solid waste at the TC. Its management measures will include:
► Separating metal dust or scrap by type to promote recovery and recycling

► Reducing and treating slags from welding, forging, machining, and mechanical finishing, which
may contain metal ions
► Proper management of metals removed from wastewaters for recovery or disposal; disposal of
sludge from surface finishing processes (e.g. galvanizing, painting, hot dip)
► If reuse or recycling is not possible, the waste would be disposed of according to industrial waste
management recommendations in the General EHS Guidelines
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15.2. Occupational health and safety
The TC is proposed to implement all reasonable precautions to protect the health and safety of
employees and students as per the World Bank norms. Although the focus will be placed during the
operation of TC, much of the occupational health and safety guidance will also be followed during the
construction and decommissioning activities. Preventive and protective measures will be introduced
according to the following order of priority:
► Eliminating the hazard by removing the activity from the work process e.g. substitution with less
hazardous chemicals, using different manufacturing processes, etc.
► Controlling the hazard at its source through use of engineering controls e.g. local exhaust
ventilation, isolation rooms, machine guarding, acoustic insulating, etc.
► Minimizing the hazard through design of safe work systems and administrative or institutional
control measures e.g. job rotation, training safe work procedures, lock-out and tag-out,
workplace monitoring, limiting exposure or work duration, etc.
► Providing appropriate personal protective equipment (PPE) in conjunction with training, use,
and maintenance of the PPE.
The application of prevention and control measures to occupational hazards will be done based on
comprehensive job safety or job hazard analyses. The results of these analyses should be prioritized
as part of an action plan based on the likelihood and severity of the consequence of exposure to the
identified hazards. The general EHS guidelines: occupational health and safety will be followed with
respect to the following;
► General facility design and operation

 Integrity of workplace structures
 Severe weather and facility shutdown
 Workspace and exit
 Fire precautions
 Lavatories and showers
 Potable water supply
 Clean eating area
 Lighting
 Safe access
 First aid
 Air supply
 Work environment temperature
► Communication and training
 OHS Training
 Visitor Orientation
 New Task Employee and Contractor Training
Page 197 of 242

 Labelling of Equipment
 Area Signage
 Communicate Hazard Codes
► Physical Hazards
 Rotating and Moving Equipment
 Noise
 Vibration
 Electrical
 Eye Hazards
 Welding / Hot Work
 Industrial Vehicle Driving and Site Traffic
 Working Environment Temperature
 Ergonomics, Repetitive Motion, Manual Handling
 Working at Heights
► Chemical Hazards
 Air quality
 Fire and explosions
 Corrosive, oxidizing, and reactive chemicals
 Asbestos Containing Materials (ACM)
► Biological and radiological hazards: Biological agents represent potential for illness or injury
due to single acute exposure or chronic repetitive exposure. Radiation exposure can lead to
potential discomfort, injury or serious illness to workers. Appropriate strategies as per the
guideline will be taken for Prevention and control of such hazards.
► Personal protective equipment (PPE) to provide additional protection to workers exposed to

workplace hazards in conjunction with other facility controls and safety systems.
15.2.1. Monitoring
Occupational health and safety monitoring programs would be undertaken to verify the effectiveness
of prevention and control strategies. The selected indicators should be representative of the most
significant occupational, health, and safety hazards, and the implementation of prevention and
control strategies. The monitoring program would include;
► Safety inspection, testing and calibration

► Surveillance of the working environment
► Surveillance of workers health
► Training
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15.2.2. Monitoring accidents and diseases monitoring
The TC will,
► establish procedures and systems for reporting and recording

 Occupational accidents and diseases
 Dangerous occurrences and incidents
► enable and encourage employees to report management all
 Occupational injuries and near misses
 Suspected cases of occupational disease
 Dangerous occurrences and incidents
► Investigate of all reported incidences with the assistance of a person knowledgeable/ competent
in occupational safety.
Page 199 of 242

15.3. Addressing potential EHS issues
The key possible issues with respect to Environment, Health and Safety (EHS) for establishment of
the new TC at Bhopal during the construction phase, operation and maintenance phase and tool
manufacturing are as follows;
15.3.1. Construction phase
The activities and anticipated EHS issues during the construction phase are highlighted in the
following sections:
Table 50: Activities and anticipated EHS issues during construction phase
Associated
Activity Recommendation for mitigation
impact
Clearing of land Soil erosion ► It would be ensured that the construction activity
(before initiating immediately follows the clearing of land to avoid soil
the construction erosion.
work, clearing of
the shrubs and
bushes shall be
carried out)
Excavation, drilling Air pollution ► Water sprinkling at regular intervals during

and levelling for the excavation and drilling activities would be practiced
construction of to avoid generation of dust.
foundation and ► The excavated soil would not be stored in the
base of building and direction of the wind and covers to be provided for
roads loose construction material.
► Activities like digging and filling will be avoided in
conditions of very high wind.
► Construction machinery will be properly maintained
to minimize exhaust emissions of CO. SPM and
Hydrocarbons.
Soil erosion/ ► Effort would be made to use the overburden within
Loss of Top premises for landscaping.
soil ► During levelling, gradation across the land (If any)
would be reduced to the extent possible.
Noise ► Regular maintenance of plant equipment will be
pollution carried out.
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► Noise prone activities will be undertaken during day

time and shall be avoided, to the extent possible,
during night time.
► Personal protective equipment will be provided for
workers performing drilling at site.
Occupational ► Provision of adequate personal protective equipment
health like safety helmets, face masks, safety shoes, safety
hazards goggles etc. for the safety of workers.
► The excavated area would be provided with a visible
boundary (Usually created using a tape and sticks) to
ensure safety at site.
► Training will be imparted to workers on occupational
safety and technical aspects of job undertaken by
them.
Disposal of ► The waste and debris would be disposed of at an
debris and identified place preferably wasteland and appropriate
other wastes approval should be taken for the same from land
owner or revenue authorities.
► The disposal site would be at least 1000 meters away
from the areas including notified forest land, water
bodies and productive lands.
Establishing labour Health Risks ► Provision of separate mobile toilet facilities for men
camp (Provision of and women will be made.
civic amenities for ► The domestic effluent will be properly disposed of in
construction labour soak pits.
and movement of ► Contractor will provide garbage bins to all workers'
truck drivers for accommodation for dumping wastes regularly in a
transporting hygienic manner in the area.
construction ► First aid box would be provided at every construction
material shall be campsite and under the charge of a qualified person
provided at the site. to provide first aid. Availability of such person should
The labour camps be ensured at all time. The first aid box would contain
at the project site the following in case of less than 50 workers at the
will be temporary in site;
nature) i) Twelve small sterilized dressings.
ii) Six medium size sterilized dressings.
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Associated
impact
iii) Six large size sterilized dressings.

iv) Six large size sterilized burn dressings.
v) Six (1/2 oz.) packets sterilized cotton wool.
vi) One (2 oz.) bottle containing a 2 per cent
alcoholic solution of iodine.
vii) One (2 oz.) bottle containing sal-volatile having
the dose and mode of administration indicated
on the label.
viii) One roll of adhesive plaster.
ix) One snake-bite lancet.
x) One (1 oz) bottle of potassium permanganate
crystals.
xi) One pair of scissors.
xii) One copy of the first-aid leaflet approved by
the Chief Inspector of Factories.
Chances of ► Awareness programmes will be conducted regularly
spread of for workers on AIDS, and other health related issues.
sexually ► Health check-up facilities for employees and contract
transmittable workers.
diseases like
AIDS
Water ► Separate mobile toilet facilities will be made available

pollution for male and female workers. The domestic effluent
will be properly disposed of in soak pits.
► Adequate drinking water facilities, sanitary facilities
and drainage in the temporary sheds of the
construction workers would be provided to avoid the
surface water pollution.
Land ► Basic sanitary facilities will be provided for the
contamination workers staying at the labour camp and at the project
site.
► Dustbins will be provided at the camp by the
contractor.
Movement of Air pollution ► All the vehicles entering the site will be asked to have
vehicles (Vehicle updated PUC (Pollution under control) certificate.
movement shall ► Vehicle speed will be restricted to 15km/hour at site.
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Associated
impact
prevail at the site to ► Trucks/dumpers will be covered by tarpaulin sheets

transfer the during off site transportation of friable construction
material and materials and spoil.
workers at site. ► Maintenance of vehicles will be carried out regularly.
Apart from this, ► Sprinkling of water will be practiced at the site.
third party vehicles Soil ► Proper maintenance of vehicle will be carried out to
delivering the contamination avoid any leakage of oil or grease.
material and Water ► Proper maintenance of vehicle will be carried out to
equipment shall contamination avoid any leakage of oil or grease.
also be there.)
Safety risks ► Vehicle speed will be restricted to 15km/hour at site.
► Necessary safety trainings will be provided to the
drivers of construction vehicles for speed restrictions
and dos’ and don’ts will be followed during movement
of construction vehicles.
Use of D.G set (D.G Air pollution ► D.G will be optimally used with proper orientation and
sets shall be used adequate stack height.
at site to provide ► Stack monitoring will be carried out on regular basis.
electricity to labour ► Proper maintenance of the DG will be carried out on
camps in the night regular basis.
time. Also, in case Noise ► Acoustic enclosures will be provided with the D.G sets
of non-availability pollution to minimize the noise levels.
of power from grid,
D.G sets shall be
used to provide
electricity at the
site for
construction
activity)
Storage of diesel Soil ► A covered area will be defined for storage of HSD
(Diesel shall be contamination with concrete flooring
stored on-site so as Safety risks ► The diesel storage area will not be in proximity of the
to ensure labour camps.
availability for D.G ► Inflammable substance will not be allowed at the
sets) project site.
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Associated
impact
Handling of waste Land ► Waste will be stored at designated place after

(During contamination segregation on the basis of category (hazardous and
construction phase and Water non-hazardous).
there may be contamination ► Hazardous waste will be disposed of to the authorized
generation of both vendors only.
hazardous and non- ► A waste management plan will be chalked out to
hazardous waste properly dispose the debris generated from the site.
which needs to be Safety risks ► Adequate PPE’s will be identified and provided to the
carefully handled workers at site.
to ensure
environment
safeguard)
Installation and Noise ► Noise shielding will be used where practicable and
operation of pollution fixed noise sources will be acoustically treated for
concrete mix plants example with silencers, acoustic louvers and
and batching plants enclosures.
(In case, these are ► Provision of make shift noise barriers near high noise
installed on generating equipment will be made to minimize
temporary basis at horizontal propagation of noise in case of residential
the project site) area in the vicinity.
Construction Child labour ► Provision of clause in contractor’s agreement will be

labour and forced made that bans child labour and forced labour at
management labour project site.
► Adequate procedures to avoid or prevent
hiring/entry of child labour at the project site will be
undertaken;
► Random check will be undertaken at the site.
Health and ► Temporary crèche facility will be provided in case of
safety risks migrant labourers children residing in the camps to
for children of ensure safety.
workers
Water ► Emphasis will be given on optimization of water usage

wastage and supply of potable drinking water for labour
camps.
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Pressure on ► Fuel will be made available to construction workers so

forest produce as to reduce pressure on forest produce or local fuel
wood resources.
15.3.2. Operation and maintenance
There are a number of environment aspects and health and safety hazards which may arise during
operations and due to negligence towards appropriate maintenance work in a TC. A snapshot of
potential aspects and hazards are as follows:
Table 51: Potential hazards during O & M phase

Potential Recommendation for mitigation
impact
Deterioration ► Maintenance and repair work would be carried out on regular basis to slow
of the down/mitigate the deterioration of the structure.
structure over ► A structural stability certificate would be taken from a chartered engineer
the period of every 5 years.
time ► Any change in the layout of the equipment, bringing heavier machinery in
place of a small one or putting more number of machinery in a particular
place, would be approved by the chartered engineer to ensure that the
modification in layout is not going to impact the stability of the structure.
Water ► Cleaning of the terrace of the building would be practiced so as to ensure
contamination that the rain water collected through water harvesting is not contaminated.
Alternatively, first rain harvest would be washed through the storm water
drain in case of rain abundant area.
Fire risk ► Fire extinguishers will be checked for pressure on annual basis.
► Fire hydrant system would be checked once in six months to ensure it is
operational.
► Electrical wiring in the premises would be regularly checked and repair
should be undertaken wherever required.
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15.3.3. Manufacturing
Table 52: Potential hazards during manufacturing phase

Associated
impact
Hand tool
manufacturing
Hammering Noise ► Ear plugs/muffs would be provided to the employees and

during forging pollution and students working in the hammering process.
process hear loss over ► Level of noise would be monitored on regular basis so as
longer period to ensure that the noise level is within specified limits.
of time ► Hammering would not be carried out during night time.
► Regular audiometric test of employees would be carried
out in order to understand if any person is susceptible to
hearing loss and in case such situation is encountered
the person would be shifted to other department and
provided with medical facility.
High ► Monitoring of the vibration will be conducted on regular
vibrations basis.
Heat treatment Air pollution ► Ventilation would be provided in work shop to avoid
concentration of the fumes.
Burn injury ► Employees would be provided with Apron while working
in the workshop.
► Workplace safety training will be provided on regular
basis.
► Eye wash and shower facility would be provided in the
facility.
► Appropriate PPE including, gloves, safety shoes,
goggles, etc. would be provided to employees and the
students.
Heat stress ► Heat stress monitoring of the employees will be
conducted once a year to ensure safe and appropriate
working conditions.
Non- Injury due to ► Cleaning schedule will be developed for the site.
maintenance of trips ► Proper demarcation of the storage area for waste
clean premises material will be done according to the different type of
waste material.
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Associated
impact
Handling of Land ► Waste will be stored at designated place after

waste contamination segregation on the basis of category (hazardous and
(Hazardous and and Water non-hazardous).
non-hazardous contamination ► Hazardous waste will be disposed of to the authorized
waste generated vendors only.
during day to ► A waste management plan will be chalked out to
day operations properly dispose the debris generated from the site.
to be carefully Safety risks ► Adequate PPE’s will be identified and provided to the
handled to workers at site.
ensure
environment
safeguard)
Use of D.G set Air pollution ► D.G set will be optimally used with proper orientation
(D.G sets shall and adequate stack height.
be used at site ► Stack monitoring to be carried out on regular basis.
to provide ► Proper maintenance of the D.G set to be carried out on
electricity in regular basis.
case of power Noise ► Acoustic enclosures will be provided with the D.G sets to
failure) pollution minimize the noise levels.
Storage of diesel Soil ► A covered area will be defined for storage of HSD with
(Diesel shall be contamination concrete flooring.
stored on-site so Safety risks ► Inflammable substance will not be allowed in the
as to ensure premises.
availability for
D.G sets)
Specialised Tool
manufacturing
Designing of Depletion of ► Paper would be recycled for rough work.

components natural
resource
(paper)
Machining Land ► SOP would be formulated for handling and storage of

activities contamination waste oil and coolant.
due to waste
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Associated
impact
oil and waste ► A designated area would be identified to store these

coolant wastes under the shed.
Water ► The hazardous waste will be disposed of to an authorised
contamination recycler and shall not be used internally for any purpose
due to waste until prior permission is sought from SPCB.
oil and waste

coolant
Noise pollution ► Ear muffs / Ear plugs will be provided to officials working
due to on these activities.
pressing and
shearing
activities
Land ► The metal scrap would be collected appropriately and

contamination stored in a designated area before being disposed
due to metal of/sold to a third party.
scrap
Cut/injury due
to metal scrap
lying
unmanaged
Use of D.G sets Noise ► Acoustic enclosures would be provided to avoid noise
pollution pollution.
Land ► Diesel would be poured in D.G set using funnel.

contamination ► Concrete flooring would be made near the D.G set.
Air pollution ► Chimney with appropriate height would be provided to

minimize air pollution and compliance with the
legislation.
Storage of Land and ► The storage area of the hazardous waste will be
hazardous waste water cemented in order to avoid land contamination.
like empty contamination ► Proper demarcation of storage area for hazardous waste
printer cartage, due to leakage will be done to avoid chances of spill over during
waste coolant, and/or spill handling.
oil soaked cotton over ► All the waste will be stored under a shed so as to avoid
waste, etc. contamination and washing away of waste in nearby
water stream or ground water in case of rain
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Associated
impact
Water ► All the waste will be stored under a shed so as to avoid

contamination contamination and washing away of waste in nearby
due to leakage water stream or ground water in case of rain.
and/or spill
over
The protection of public health, safety and general welfare will also be ensured through adherence
to the building codes since these are related to the construction and occupancy of buildings and
structures.
15.4. Provisioning of site services
The following section outlines the details of the essential measures to be designed as per regulatory
requirements relating to maintenance such as;
► Fire alarm and firefighting system,
► Rain water harvesting,
► Water treatment and sewage treatment,
► Ventilation system.
15.4.1. Fire alarm and firefighting system
a) Fire alarm system
► Automatic Fire alarm system will be provided in all buildings of the campus excluding student
hostels and emergency staff quarters.
► The system will have appropriate provisioning of smoke detectors and beam detectors with
respect to the sensitivity and probability of fire.
► Fire alarm panels will be provided at appropriate locations with easy and convenient
accessibility for manual activation of alarm in case failure of automatic system.
► A control panel will be provided at control station with a repeater panel in security cabin to
activate, deactivate and reset the fire alarm system.
► The instrumentation, panels, sensors and equipment used will be of certified make confirming
to relevant standards.
► Smoke detectors and beam detectors will be installed above and below false ceiling as
applicable.
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b) Firefighting system – overview
► Firefighting system comprising of sprinklers, yard hydrants and pumping station will be
provided.
► Sprinklers system will be provided in the production area (above and below the false ceiling),
training block, administrative building (all floors) and other buildings etc.
► Yard/ field hydrant system will be provided throughout campus with hydrant posts at
appropriate locations having operating valve and hose reel provided in hose reel boxes as per
standards.
► Staircases in all buildings will be provided with wet risers.
► The piping network will have suitable size/ diameter MS pipes welded at joints or connected
with socket and threaded joints as per the regulations.
► All pipes will be painted in red colour as per the standards.
► The hydrant and sprinkler system will be connected to piping network and will be continuously
charged with water at appropriate pressure as per applicable standards.
► All equipment and items used in firefighting system will conform to relevant codes of
practice, standards, rules and regulations applicable.
► Fire water tank of minimum 2000 cum capacity/ one hour supply will be provided.
► The tank will be placed overhead/ above ground so that the pumps operate in negative
suction and with required level of water even when they are off.
c) Pump room
► The pumping station will be located near the fire water tank to store adequate volume of
water for firefighting as per rules and regulations set by local fire authority and guidelines by
NBC.
► Both the sprinkler system and hydrant system will be fed with common electrically driven
pump, backed with a diesel engine driven pump of adequate capacity to maintain required
pressure in the pipe line.
► Electrically driven jockey pump of adequate capacity will be provided in the pumping station,
which will be positioned and programmed in such a way that jokey pump starts first in case
there is any loss of pressure in the fire pipe line.
► The pumps will be automatically operated and control panels with required switchgear, logic
will be provided to control the pumps.
► Necessary arrangements for power supply will be done for the fire pumps.
► The power and control cables used for fire pumps will be fire rated and conforming to relevant
applicable standards.
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► The pumps will be placed on adequate foundations/ pedestals with adequate support to the
piping.
► The pump room will be covered with canopy roof in steel structure and pre-coated sheets.
► All electrical fittings and accessories in pump room will be of weatherproof category IP55.
d) Sprinkler system
► The sprinkler pendants/ heads provided will be of appropriate category as per the hazard
category and water required to extinguish fire. This will be governed by appropriate design
standards and regulations of local fire authority.
► At least one test sprinkler will be provided in each area for periodic testing of the system.
► The density of sprinklers will be as per applicable regulations.
e) Hydrant system
► The hydrant system will comprise of ring main and other circuits around all buildings in the
campus, thus making it possible to reach to any corner in case of fire.
► Hydrant system will have hydrant posts at appropriate locations.
► The hydrant post will have hose reel box with hose reel of appropriate length with nozzle as
per applicable regulations.
► The hydrant posts and the hose reels will be easily accessible.
► Appropriate valves will be provided on the hydrant posts to operate the hydrant and connect
hose reel whenever required.
► Sufficient valves will be provided in each loop of the hydrant system to enable maintenance
of any portion of line without draining the firefighting system and releasing pressure in
remaining portion.
► 4 way valves will be provided at appropriate places allowing connection with external fire
tenders mounted on truck.
► Wet risers will be provided in every staircase of each building with suitable reel drum having
rubber hose of adequate length fit with suitable nozzles.
► The hydrant network pipes will be placed above ground and only the crossings will be
underground wherever required.
f) Fire water tank
► Water tank with adequate capacity will be provided to store water for firefighting purpose.
► Arrangement will be done in such a way that the water sourced will first be filled in the
primary fire water tank and the excess overflow from this tank will be put in to domestic and
other water tanks.
► The tank will be site assembled with FRP or other panels using appropriate technology and
will be placed above ground.
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15.4.2. Rain water harvesting
► The campus will be divided in to 4 or 5 areas and the storm water from the roof top of each
building in each area will be collected in the specified area.
► The storm water outlets on building roofs will be checked for adequacy with respect to size
considering maximum rainfall intensity in past 100 years.
► Additional outlets will be provided to the building roof, in case the existing outlets are found
to be insufficient.
► The outlets will be provided with vertical down take pipes, which will be connected to the
existing underground storm water lines through nearby chambers.
► Suitable locations for ground water recharge pit will be identified in each area as mentioned
above.
► Considering geology, ground water tables, applicable rules and regulations and available
space, ground water recharge pits with bore holes and pipes will be designed with adequate
capacity.
► The ground water recharge pits will be connected to the storm water line through nearest
chamber to fetch storm water (collected on roof) to the pit.
► Overflow will be provided to the ground water recharge pit at suitable level, to take off excess
water back to the storm water network and discharge off.
► The ground water recharge pits will be protected with fence around to prevent ingress of
people, animals etc.
► Suitable provision will be made to cut off and on the flow to the ground water recharge pits.
15.4.3. Water treatment plant
► Water treatment plant with 2 types of treatment will be provided on campus;

 Water softening (1, 50,000 litres/Day).
 Water purification with suitable RO and UV (25,000 Litres/Day).
► The water treated with softening plant will be used for general domestic purpose except for
drinking.
► The drinking water will be treated using water purification plant with RO and UV technology.
► Adequate piping network conforming to applicable rules, regulations and standards will be
provided for supply of drinking water at various locations within the facility.
► The softened water will be supplied through existing water supply network to various
locations in the premises.
► The existing water supply network will be inspected for leakages, damages for appropriate
repairing.
► The equipment provided for water treatment will be standard and approved/ certified by
appropriate government bodies certifying such equipment.
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► Arrangements for power connection including laying cables and necessary switch gears at
both ends at main supply point and machine point will be provided.
► Adequate drainage will be provided for regeneration of both treatment plants, while
connecting the same to primary and secondary effluent treatment.
15.4.4. Sewage treatment plant
► Sewage Treatment plant with integral effluent treatment will be provided for primary and
secondary treatment with capacity of 60 cum/day.
► The primary treatment will be through the use of septic tanks of adequate capacity, located
at various places near the toilet blocks on campus.
► The septic tanks will have adequate manholes for cleaning and maintenance purpose and will
also have gas vents rising above the highest level of the buildings to avoid foul smell.
► Overflow outlets of the septic tanks will be connected to secondary treatment achieved
through properly designed constructed wet land system with sub-surface flow.
► The constructed wetland will consist of locally available species of wetland trees, bushes and
shrubs.
► Collection tank of adequate capacity will be provided on the upstream of the constructed
wetland to take care of incidental heavy flows.
► The constructed wetland will be located suitably in the premises allowing adequate sunlight
for growth of plants throughout the day.
► Provision will be made to allow rejection and regeneration discharge from water treatment
plant by dissolving high TDS water suitably.
► Necessary de-odour and chemical dosing will be provided at the end of wetland before the
water obtained is reused.
► All equipment used and the design, arrangement will be in compliance with applicable rules
and regulations as laid down by town planning authority, central pollution control board and
other local authorities.
15.4.5. Ventilation system
a) Internal buildings
► The TC premises will have provision for sufficient ventilation. This will be done keeping in
view the amount of space in the TC, number of people expected to occupy the space, type
and amount of machines/equipment, and overall size of the space. The designing will be done
keeping in view proper distribution of air for ventilation throughout all occupied spaces
across the TC.
► Natural ventilation - The premises will have adequate openings, such as doors, windows
and/or vent opening to clean environment. Roof vents would be placed wherever applicable
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to reduce the reliance on air conditioning systems and also reduce CO2 emission in the
building.
► Mechanical ventilation – Mechanical parts would be installed to provide air to building
occupants at a comfortable temperature and humidity that would be free of harmful
concentrations of air pollutants.
► Provision for adequate supply of outdoor air in the indoor environment will be provided to
dilute pollutants released by equipment, building materials, furnishings, products, and
people. The building’s ventilation system will be properly installed with filters to trap such
particles.
► Air input, smoke exhaust will also be installed and maintained for proper ventilation.
► Hybrid ventilation systems are popular in industrial buildings which predominantly use
natural ventilation along with mechanically driven fans to improve predictability of
performance over a wider range of weather conditions. Provisioning of the same will be taken
into account wherever applicable during designing the ventilation system.
b) Manufacturing/ Production area
► Precision machining and QC areas will be provided with central air conditioning.
► Air quality in production area will be checked for vital parameters such as concentration of
CO2, CO and other relevant gases during operations.
► In case the parameters above are not acceptable as per relevant standards, adequate
capacity fresh air system will be designed and provided for production area to improve quality
of air.
► The fresh air supply system will consist of an external air handling unit of adequate capacity
with suitable grade filters on inlet side.
► The outlet of the air handling unit will be connected with duct system supplying air inside the
production area at various places.
► The fresh air will be discharged in the production area by providing suitable diffusers.
c) UPS room
► Appropriately designed ventilation system will be provided to the UPS room.

► The ventilation system will mainly comprise of air conditioning units providing cold air at
lower temperature and exhaust system taking out hot air coming out of the UPS.
► The system will be designed to maintain adequate temperature around the UPS equipment
as per manufacturer’s requirements/ specifications.
► Humidity will be controlled to the desired level as directed by the UPS manufacturer by
controlling inflow of fresh air.
Proper ventilation will be provided to battery racks with adequate number of air changes as per
applicable rules and regulations.
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Key risks and mitigation
Page 215 of 242

16. Key risks and mitigation
The key risks associated with implementation of the project along with possible mitigation measures are summarized in this section. It must be noted that
risks universe is dynamic and is likely to change periodically. It is recommended that frequent analysis is carried out and mitigation plans are drawn. Below
are risks that may impact this project;
Table 53: Risks & mitigation

Impact on
Key broad area Risk Mitigation
Cost Time Resources
Project Planning Risk of inadequate planning of time, effort ► Adequate time and cost buffer to be kept to
and resources required to complete the deal with contingencies.
  
project ► Appointment of CMC for detail design and
project management during construction of
the TC
Approvals and Risk of delay in clearances from local ► Appointment of PMC firm.
Clearances authorities like ► Timely application of approvals for relevant
► Plan Sanction – Town Planning Authority/ authorities by CMC
Local Body ► Monitoring of status of Approvals.
► Commencement Certificate – Town 
Planning Authority/ Local Body

► Fire NOC – Provisional and Occupancy –
Local Fire Authority
► Plinth Checking Certificate – Town
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Impact on
Cost Time Resources
► Building Completion Certificate – Town

► Consent to Establish and Operate –
Pollution Control Board
► MAP Approval and Factory License –
Directorate of Industrial Health and
Safety
► Labour License – Labour Commissioner
► Fuel Storage – Chief Controller of
Explosives
► Tools, Tackles, Pressure Vessels, Hoists –
Competent Engineer
► Electrical Systems – Electrical Inspector
Environmental risk Loss of top soil ► Top soil excavated from the site should be
carefully handled. It should be collected
separately and stored as a heap which is
appropriately covered. The heap should not be  
put in the direction of wind to avoid dust

generation
► Maximum effort should be made to utilize the
top soil for landscaping within the site
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Impact on
Cost Time Resources
Air pollution due to digging and levelling ► Water sprinkling shall be practiced
activities ► Construction machinery shall be properly
maintained to minimize exhaust emissions of
 
CO, SPM and Hydrocarbons
► These activities shall be avoided in very high
wind and cover should be provided for loose
construction material
Water contamination and health risks ► Toilet shall be earmarked for both men and
associated with setting labour camp for women contractual workers
construction ► Adequate drinking facilities shall be provided
 
at the construction site;
► Temporary crèche facility may be provided in
case of migrant labourers children residing in
the camps to ensure safety
Land and water contamination due to waste ► Waste shall be stored at designated place after
generated at site segregation on the basis of category
 
(hazardous and non-hazardous)
► Hazardous waste shall be disposed of to the
authorized vendors only
Air pollution due to use of D.G set. ► D.G set to be optimally used with proper
orientation and adequate stack height 
► Stack monitoring carried out on regular basis
Page 218 of 242

Impact on
Cost Time Resources
► Proper maintenance of the DG Set should be

carried out on regular basis
► Acoustic enclosures are to be provided with
the D.G sets to minimize the noise levels
Construction Delay in construction due to cost overrun, ► Appoint a PMC for a design and build contract
management of building contractors. for managing construction.
► Strict timeline will be made and agreed with
 
PMC.
► Regular M&E, Built in mechanism for penalty
for delays and incentive for timely completion,
ensuring timely payment based on milestones.
Deviation in project Change in project scope ► Clear buy in on project plan and execution
scope ► initiated by MoMSME, planning.
  
► Machinery supplier constraints ► Identification of Machinery suppliers based on
► Product discontinuation the top current suppliers and technology

available.
Maintaining World Construction quality may not be up to the ► Appointment of third party Government
Class Construction mark. quality assurance agency.  
quality
On-boarding of Key Delay in on boarding of key project ► Clearly defined scope and incentives for
 
players stakeholders stakeholders.
 Technology Partner
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Impact on
Cost Time Resources
 Construction Network Manager ► Timely contracts with the project

 Construction Management Consultant stakeholders.
Quality Assurance
Procurement of Delay in procurement of machines and goods ► Machines and equipment chosen should be
machinery due to high Lead time and time taken for standard and popular models available in
clearances market. Early release of order confirmation
and advance if any. 
► Appointment of efficient and pre-approved

Clearing & Handling Agency (CHA) to ensure
timely clearances and transportation of
machines.
Variation in Equipment required and finally ► Neutral specifications to be drafted based on
procured. Too stringent specs may lead to thorough research on TC requirements and  
high price and low competition, loose specs current models available.
may lead to low price but low quality
Trained resource Availability of trained manpower for ► Machine specific training programmes to be

availability operation of new machines conducted for training of key personnel and
knowledge sharing.
Market ► Change in product mix ► Expansion of product base.
► Change in customer mix ► Increase in customer base.
 
► Change in technology ► Develop a backup plan for retiring of obsolete
► Change in product pricing machines.
Page 220 of 242

Impact on
Cost Time Resources
► Competition from Govt./Public tool rooms

► Lack of cluster development in the target
region
Policy Change in Government Policy/ Schemes for ► Increase existing customer base.
► Training ► Diversify into new sectors.
► key sectors  
E.g. Change in Government space

programme, increase in imports may
affect orders from major clients
Taxation Change in service tax policy on training may ► Institute should keep abreast with policy

adversely affect training revenue changes and the same should be considered
while designing the course and fee structure.
Human resource ► Labour availability ► Planning for holidays and lean periods.
► Retention of key employees (Flight of key ► Good incentive scheme and career  
talented people can make it difficult to development plans.

achieve centre’s growth plans)
Management risk Lack of capable management to run the TC ► Leadership training. 
► Succession planning.
Maintenance risk/ Delay in availability of spares and service ► Procure models that are likely to continue for
spares - Availability support at a reasonable cost at least next 5 yrs. to ensure better 
of spares & services availability of spares and services.
Page 221 of 242

Impact on
Cost Time Resources
Performance of key Poor performance of Outsourced agencies ► Establishment of KPIs


stakeholders like TP, CNM and PMC ► Periodic review of performance. Suitable
penalty clauses to be added in the ToRs.
Weather Delay in construction due to monsoon season ► Planning for lean periods and periods of low  
construction activity.
Page 222 of 242

Conclusion
Page 223 of 242

17. Conclusion
The proposed TC at Bhopal will focus on General Engineering. The proposed TC will aim to support
and strengthen MSMEs and help them improve competitiveness through training, production support
and advocacy. Training, Tool manufacturing and consultancy / advisory streams would be the
prominent activities to be undertaken by the TC. Besides providing training to students, the TC will
also provide support to other training institutions. It shall provide services like curriculum
development, initial setup support, certification services and training of trainers to these institutions.
The TC will also have a documentation centre which consist of latest publication standards,
engineering standards and other technical books. TC shall also support MSME clusters in technology
and engineering solutions and for improvement of their quality systems and productivity. The TC will
make a concerted effort in reaching out to MSMEs for these works. For improvement in productivity,
TC would initiate design clinics, training in lean manufacturing and project based consultancy. The
TC would further put greater emphasis to equip itself to provide consultancy services to MSMEs in
the field of product design and development, tool design, manufacturing and innovations in process
and productivity.
TC will contribute towards skilling youth to make them employable in industry by designing courses
relevant to them. The focus areas for the proposed TC are in line with objectives of the program. This
will be further be complemented by the proposed initiatives like;
► TC shall work as a key skill development centre. It shall not only provide advanced training in
manufacturing technology but also work as a key facilitator for existing ITIs and polytechnic
institutions in the catchment area. It will provide curriculum development support, training for
trainers, mentoring to new institutions, and testing and certification services to increase
competitiveness of ITIs and Polytechnic institutions.
► The new TC will take steps to form consortium with MSMEs including TCs to jointly cater to the
focus sectors. Once formed, the TC would further formalise and institutionalise the consortium.
The TC should provide handholding/ support and special machining & testing facility to members
of this consortium and prepare a road map for the next 3-5 years to ensure that these MSME can
develop the required expertise and become more competitive.
► The TC will form Productivity and Quality club for cluster of engineering industry and support
them for a period of 12 months in which each cluster club of about 10 MSMEs will be assigned a
mentor (Sr. Engineer Production/ Design/ Training and above). The mentor will make periodic
visits to the MSMEs. He will plan and handhold in the execution of the plan at the MSMEs so as to
have a visible improvement at the end of 12 months period. Membership can be for a nominal fee.
Quality club and Productivity club may be formed separate and the KPI of mentors will be decided
based on the results achieved by MSME units.
Page 224 of 242

► Incubation Centre: The Incubation Centre is proposed at Bhopal TC with the basic shell
infrastructure and world class manufacturing plant and machinery on rental basis for a 2 year
period (as part of Phase 2). This Incubation Centre is expected to fuel the growth of enterprises
which have successfully crossed the stage of pilot order and are ready to execute larger orders.
The Incubation Centre would provide shell infrastructure, latest technologies, support business
facilities, provide IT support, provide electricity and power connection, and assist with registration
and clearances for setting up a manufacturing unit. In addition to this, the Incubation Centre would
help entrepreneurs to connect with suppliers and skilled workers.
All these initiatives of the TC would not only strengthen the expertise of MSMEs in manufacturing but
also help to develop a sustainable ecosystem for MSMEs in the region in the long run. On the same
line, even investments have been proposed keeping the focus area and adherence to EHS guidelines
in mind.
Above all, TCSP program will enable TC to showcase the best practices not only in the adoption of
new technologies and skilling the youth but also managing all the associated environmental and social
aspects.
Page 225 of 242

Annexure
Page 226 of 242

18. Annexure
18.1. Key questions asked in the Need Assessment Survey
1. What are the key types of tools/ products manufactured?
a.
b.
c.
d.
2. What are the key sectors catered?

a.
b.
c.
d.
3. Have you ever taken any support from MSME Tool room? If yes, in which field?
a. tool design
b. tool manufacturing
c. Training
d. Consultancy
4. Would you be interested to take support from MSME Tool room? If yes, in which field?
a. tool design
b. tool manufacturing
c. Training
d. Consultancy
5. If expansion is planned by your firm which will the capabilities/resources required

additionally?
a.
b.
c.
d.
6. Which are major raw materials for your firm? If needed extra space please use additional
pages.
Page 227 of 242

S.N. Raw Material Imported (%)
7. Manpower requirement of your firm :
S. No Option Area 1 Area 2 Area 3

(a) Skilled Workers
(b) Engineers & Technicians
(c) Managerial
(d) Unskilled/Others
Area e.g. Design, Tool making,
8. What are the top three manufacturing process trends in your sector?
a.
b.
c.
9. How are you acquiring new technology trends in your company?
a.
b.
c.
10. Which are the top three requirements of your firm with respect to improvement in
Manufacturing Technology that will improve firm’s competitiveness? If needed extra space
please use additional pages.
a.
b.
c.
11. Can you mention key areas/ products you plan to venture in future, where MSME tool rooms
can support?
12. Would you be open to formation of consortium with MSME Tool Rooms and for
manufacturing?
13. What are the key manufacturing technologies/ processes currently in use?
Page 228 of 242

14. What are the key issues and challenges faced in current processes/ technologies to cater to
current requirements?
15. What are key technologies that are required but currently not available?
16. What are key skills required for managerial manpower and machine operators?
17. Existing gaps in skills required for Managerial manpower and Machine operator level?
18. Additional skills required to cater to new requirements
Page 229 of 242

18.2 Minute of stakeholders meeting at Bhopal
Date 04 May 2016
Time 1000 - 1230 hrs
Location Conference Room – MPLNU, Bhopal
Name Designation/Organization
Chaired By V.L. Kanta Rao PS Industries, Govt. of MP
State Govt. Dr. B.M Singh Chief General Manager, MPLUN
MoMSME Pramod Joshi GM, IGTR Indore
Pradeep Kumar Director, MSME-DI Indore
Vijay Garge Asst. Director, MSME-DI Indore
V.P. Sharma Dy. Director, MSME-DI Indore
Alok Sahu Manager, CIPET
Satyanayaran GM – Logistics, BHEL
V.K Beohar Secretary, FMPCCI
K.S Nanda Vice Chairman, CII
Director, Govindpura Engineering

S.K. Pali
Cluster
V.K Porwal VP, MPSSIO
Others Mohan Chaturvedi
Anant Toppo BHEL, Bhopal
A.K Bhatt BHEL, Bhopal
Kailash Bhargava DTIC, Mandideep
Sanjay Pathak DTIC, Bhopal
J.N. Vyas AKVN, Bhopal
Kailash Agarwal MPSSIO
Vipin . K Jain MPSSIO
Page 230 of 242

Vijay Goyal MPSSIO
Ashok Patel Lahu Udyog Sangh
Shripad Dhupand Lahu Udyog Sangh
K.S. Nanda CII, Bhopal
Anirudh Chauhan CII, Bhopal
Nitin Sharma CII, Bhopal
V.K Porwal MPSSIO
V.K Beohar FMPCCI
Mukesh Sachdeva Govindpura Industrial Association
Pankaj Bindra Govindpura Industrial Association
Nandlal Gupta Govindpura Industrial Association
S.K Pali Govindpura Industrial Association
Surendra Mittal Govindpura Industrial Association
Shirish Parendhar Laghu Udyog Bharti
Manmohan Sharma Laghu Udyog Bharti
EY Personnel Dinesh Pradhan Sr. Advisor
Dr. Milind Mujumdar Team Leader
Jayant Prakash Manager
Devesh Gautam Consultant
Agenda Stakeholder workshop in Bhopal
► Overview of MSME Sector in Bhopal region

► Challenges faced by MSMEs
► Potential for Bhopal TC
► Emerging business opportunities for Indian MSME
► Overview of ecosystem and the need of MSME players in the
region.
Page 231 of 242

Key Points ► Meeting was chaired by Shri. V.L. Kanta Rao, PS Industries, Govt.
Discussed of MP and following inputs were given by the members for Bhopal
TC:
► It was conveyed that there should be a full-fledged incubation
centre with all modern facilities. It was also suggested that
incubation centre should consist of alloy materials development
centre.
► It was also suggested that Vendor development should be part of
incubation centre
► It was also suggested that there should be a service level
agreement between TC and its clients for the facilities/services
provided of Bhopal TC
► MSMSEs informed that there is dearth of labs which can provide
NABL accreditation and other similar accreditations for it
products. It was suggested to have a testing labs which can
provide accreditations to products developed by MSMEs.
► It was suggested that TC must have a documentation centre
which consists of latest publication standards, engineering
standards and other technical books
► It was suggested that training programs should be in line with
international trade practices
► MSMEs suggested to have following labs in the TC:
o CMM Lab / QC Lab
o Mechatronics Lab
o Metallurgy Lab
o Advance welding lab with under water welding facility
► It was suggested that Bhopal TC facilities should not be
duplication of facilities at CRISP, Bhopal, Mini Tool Room coming
up in Govindpura Industrial Area (GIA) and IGTR Indore. In this
regard representatives of GIA agreed to share the DPR of mini
tool room. Further, CIPET invited PMU team to visit its facilities
so that duplication of CIPET facilities didn’t take place and CIPET
also informed that its tool and die/mould making facilities aren’t
strong and would like to partner with Bhopal TC for transfer of
technology and knowledge.
► It was also suggested that PMU (EY) to conduct a survey among
MSMEs so that wider and more number of MSMEs can provide
there inputs for Bhopal TC
Page 232 of 242

► Bhopal TC should have facilities to enable MSMEs to work with

Defence and Space organizations.
► It was also conveyed by PS to have one more seminar during the
preparation of DPR wherein views and initial findings of DPR can
be discussed with stakeholders.
► PS conveyed that PMU should submit its DPR by 15th June 2016
and TC should start functioning by Dec 2017.
Date 05 May 2016
Time 10:00 – 19:00
Location Various
Name Designation/Organization
C.K Sharma Sr. Manager, IGTR - Indore
Vijay Garge Asst. Director, MSME-DI Indore
V.P. Sharma Dy. Director, MSME-DI Indore
Assistant Manager, DTIC-

Arun Pandey
Mandideep
Vinod Mam VP, Eicher Motors
Lt. Cdr. Deepash Singh Katal Sr. Manager, Eicher Motors
Dilip Kumar GM, Aristo Pharma
Others K.C Sharma VP, Lupin Pharma
Mukesh Sharma CEO, CRISP
Dr. Shrikant Bansal COO, CRISP
M.S. Waikar Sr. Manager, CRISP
Sandeep Jain Sr. Manager, CRISP
Alok Sahu Manager, CIPET
Page 233 of 242

President, Mandideep Industrial

Sanjay Khandelwal
Association
EY Personnel Dinesh Pradhan Sr. Advisor
Dr. Milind Mujumdar Team Leader
Devesh Gautam Consultant
Agenda Stakeholder workshop in Bhopal
► Overview of MSME Sector in Bhopal region

► Challenges faced by MSMEs
► Potential for Bhopal TC
► Emerging business opportunities for Indian MSME
► Overview of ecosystem and the need of MSME players in the
region.
Key Points Discussed Discussions with Lupin Pharma & Aristo Pharma at Mandideep
► Lupin informed that it does most of the works in-house.

► Aristo Pharma informed that outsourced items like cartons,
labels, packing, bottles etc. are being procured from Bombay or
Gujarat and it would be of great help for them if similar kind of
industries can be developed in the vicinity with the help of TC.
Discussions with Mr. Sanjay Khandelwal (MIA) at Aristo Pharma
► Mr Sanjay informed that there is a big facility coming up of Eicher-

Volvo in Bagroda Industrial area.
► He also informed that Bagroda Industrial area will focus on light
machinery and engineering units
► It was also informed that there are currently 20-25 and 15-20
ancillary units of Eicher Motors (TAFE) and Crompton Greaves
respectively and if facilities are provided than more ancillary units
will come up.
► It was informed that there are around 150 engineering units in
Mandideep and out of which around 25 use hi-tech machines such
as CNC machines etc.
Discussion with Eicher Motors (TAFE) at Mandideep
► It was informed that TC should have casting & forging facilities to

support MSMEs
Page 234 of 242

► It was also informed that TC can focus on Aluminium/Pressure Die

casting facilities
► It was also conveyed that TC should have facilities for making
plastic moulds.
► It was suggested that TC should procure 5 Axis laser cutting
machine as currently there are only 4-5 locations where this
machine is available across India.
Discussions with CRISP at CRISP, Bhopal
► It was informed that TC should procure Jig Boring machine as

same is not available in the vicinity and there is a demand from
MSMEs for such kind of machine
► It was also informed that TC should have Heat Treatment facility
considering the needs of MSMEs
► It was conveyed that Mechanical press facility is also not available
and TC can procure machine to overcome the needs of MSMEs
► It was also informed that a plastic park has been proposed to be
set up in Bhopal and TC can focus on Die and Mould
preparation/design to cater to the industries proposed in plastic
park
Page 235 of 242

18.3 Social Screening Certificate
Page 236 of 242

Page 237 of 242

Page 238 of 242

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Draft

Report No: 2016-Delhi-0283

The Office of Development Commissioner – MSME

This Detailed Project Report is based on inquiries of and discussions with:

► World Bank Mission

► Industries and Ancillary units

► Government Institutes and Industry association

Very truly yours,

Amar Shankar, Partner – Advisory Services

AICTE All India Council for Technical Education

PMC Project Management Consultant

Version Issue date Amendment description Prepared by Reviewed by

Demographic overview and challenges ............................................................... 16

4.3.1 Government Bodies ......................................................................................... 45

Primary Research ............................................................................................ 59

Market in core sectors in the catchment ............................................................. 65

15.1.1. Air emissions ................................................................................................. 190

15.2.1. Monitoring ..................................................................................................... 198

15.3.1. Construction phase ........................................................................................ 200

15.4.1. Fire alarm and firefighting system ................................................................... 209

Figure 1: TCSP eco-system .................................................................................................... 20

Table 1: Result indicators of the RFD ...................................................................................... 24

Table 18: Roles and responsibilities of proposed positions .................................................... 106

Background and project rationale

Plan and beyond

Demographic overview and challenges

The National Manufacturing Policy has six objectives:

7 Vocational Training in the Private Sector (Goyal 2011)

Technology Centers System Program

► Number of enterprises paying for the services of the TCs.

This program will help MSMEs in key industries to become more

Key TCSP stakeholders

► Office of Development Commissioner, Ministry of MSME (DC-MoMSME)

► Industry associations, academia, applied research institutes and others

 Regional / sectorial industry associations representing MSMEs.

► Program management unit (PMU)

► Technology partner (TP)

► Cluster network manager (CNM)

► IT service provider (ITSP)

► National Portal Service Provider (NPSP)

► Construction Management Consultant (CMC)

TCSP’s objective is to enhance the competitiveness of MSMEs by improving their access to

► Revenue earned by respective TC from,

► No. of units assisted , out of which how many are MSMEs

Table 1: Result indicators of the RFD

Number of enterprises paying for the services of TCs

Program development objective Number of long term trainees employed by industry,

TCs' gross profit before depreciation (not including

Revenue of TCs from access to technology activities

Access to Capacity utilization of machines in TCs

No. of technology strategies/roadmaps developed by TPs and

Number of trainees trained (direct program beneficiary)

Number of needs assessment and business plans

Number of users of IT Platform

Existing MSME TCs and feedback on other TRs

Table 2: Existing TCs & TRs along with their specializations

S. No. Name Specialization

9 Central Institute of Hand Tools (CIHT), Tooling (specialization in hand tools)

S. No. Name Specialization

Figure 2: Location of existing TCs and New TCs