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Talent Projections & Skills Gap Analysis for the Infrastructure Sector (2022)

This report has been prepared on the basis of information obtained from key industry players, trade associations, government agencies, trade publications and various industry sources specifically mentioned in the report. While due care has been taken to ensure the accuracy of the information contained in the report no warranty, express or implied, is being made or will be made, by NSDC or Aon Hewitt as regards the accuracy and adequacy of the information contained in the report. NSDC holds all copyrights to this report, and no part thereof may be reproduced or replicated without prior explicit and written permission of NSDC Any questions or queries may please be addressed to: Neil.Shastri@aonhewitt.com

About

National

Skills

Development

About Aon Hewitt

Corporation The National Skill Development Corporation Aon Hewitt is the global leader in human capital consulting and outsourcing solutions. The company partners with organizations to solve their most complex benefits, talent and related financial

(NSDC) is a Public Private Partnership in India, set up in 2009. Its primary objective is of enhancing, supporting and coordinating private

sector initiatives for skill development. NSDC aims


to skill / up-skill 150 Mn people in India by 2022, mainly through private sector initiatives and providing viability gap funding.

challenges, and improve business performance.


An Aon Hewitt design implements, communicates and administers a wide range of human capital, retirement, investment management, health care, compensation and talent management strategies. With more than 29,000 professionals in 90 countries, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit

www.AonHewitt.com

Acknowledgements

We would like to thank Mr. Deepak Sikand (Sikand and Associates) and Construction Federation of India for their valuable inputs which went into the completion of this project.

About This Document

This document has been prepared by Aon Hewitt for the project titled Talent Projections & Skills Gap Analysis for the Infrastructure Sector (2022). The document contains the research findings of Aon Hewitt while estimating the total manpower required by the infrastructure sector till the year 2022. A detailed description of the approach and methodology followed by Aon Hewitt while conducting this study has been provided. Further, the report analyses the supply and demand side of manpower numbers across various job categories and infrastructure sub sectors required for construction and maintenance of infrastructure till the year 2022. A list of Job categories and the infrastructure sub sectors covered is provided in the accompanying table:

Category Roads and bridges Ports Transport Inland Waterways Airports

Sub-Sector

Railway Track, tunnels, viaducts, bridges Electricity Transmission Electricity Distribution Electricity Generation Energy Oil & Gas pipelines Oil/Gas/Liquefied Natural Gas (LNG) storage facility Petrol Stations Refineries Solid Waste Management Water supply pipelines Water & Sanitation Water treatment plants Sewerage pipelines Irrigation (dams, channels, embankments etc.) Storm Water Drainage System Communication Telecommunications (Broadband and Towers) Education Institutions (capital stock) Hospitals (capital stock) Social and Commercial Infrastructure Common infrastructure for industrial parks, SEZ and tourism facilities. Fertilizer (Capital investment) Post-harvest storage infrastructure for agriculture and horticultural produce including cold storage Cold chain

Executive Summary

The Indian Infrastructure industry has been growing impressively, with an average real growth rate of 12.28%, annually - for the years 2004-09. This reflects the countrys continued need for investment in transport infrastructure, electricity generating capacity and other supporting infrastructure, as well as build-up of industrial capacity. Investments in this sector are critical, and key to achieving an 8% GDP growth rate for years to come. The government of India, has recognized the need of active investments in this sector, and is looking at investing US$ 1 Trillion in its 12th year plan (2013-17)1. Further, these investments are fueled by involvement of private sector through Private Public Partnerships and Build Operate Transfer projects. The sector is labour intensive, thus to sustain investments and infrastructural capacity building, it is important to aggressively train and up skill manpower for this sector. According to Aon Hewitt analysis carried out for this report, the Indian construction industry employs more than 40 Mn workforce 2, only for blue collared jobs. Out of this, about 80% or 32 Mn workforce are employed with the infrastructure construction sector alone. The industry is highly unorganized and unregulated with ad-hoc sourcing of manpower, and ad hoc training techniques. As per CIDC (Construction Industry Development Council), it is estimated that only 3%-5% of the total blue collared workforce employed by the sector has some formal training or are certified. Skills training initiatives - both public and private including ITI (Industrial Training Institute), ITC (Industrial Training Institute) and VTI ((Vocational Training Institute), among others, do not currently cater adequately to the skills demands of the industry. Out of 1.2 Mn seats offered by ITI / ITCs 0.74 Mn seats are for trades that cater to the construction industry 3. However, these trades are not exclusive for construction and most of them like electricians, foremen and the like can be employed in the light engineering and manufacturing sectors also. Moreover, the curriculum offered does not provide training in essential job trades critical to construction, such as skilled construction supervisors, bar binders, drivers and building machine operators.

It was also found that all sectors are moving towards higher technology platforms hence would need specialized skills across trades, such as, machine operators, welders, supervisors, technical/ engineers among others. As the industry increasingly moves towards the adoption of technology and global best practices, the need for skilled talent will also increase proportionally.

Analyzing the demand side, it was observed that 87.02 Mn of blue collared workforce would be needed by the construction related activities of the infrastructure sector, for FY 2022. This includes workforce for infrastructure maintenance of existing as well as new infrastructure, till FY 2022. The infrastructure sectors under study, would require 37.6 Mn skilled workforce (includes Skilled & semiSkilled*), for construction and maintenance in 2022 and the demand of unskilled workforce approximately 49.42 Mn in 2022. would be

Through the implementation of these initiatives it is hoped that the Indian infrastructure industry would be able to be to generate effective employment, improve labour working conditions and other source quality labour. Further, from the labour perspective, the talent pool will be more employable, better remunerated, and will achieve better working conditions. In addition to the construction and maintenance of infrastructure sector, operations forms a critical aspect . To ensure continuous delivery of service and optimal utilization of resources efficient operations is necessary. The report, in addition to the construction and maintenance incorporates operational aspects of infrastructure. 9 sub-sectors of infrastructure have already been covered under various NSDC reports. The report covers 15 sub- sectors of infrastructure, which have not been covered yet. In estimating the manpower required for infrastructure operation, Aon Hewitt's internal databases and primary research have been made use of. According to the analysis it is estimated that for the 15 sub-sectors covered the manpower required is 16 Mn for operations. This includes white collared and blue collared workforce.

Social & commercial Infrastructures as a sector will generate the maximum demand, the sector is expected to employ the largest number (36.4 Mn) of blue collared workforce by 2022. This followed by Water & Sanitation and Transport catering to about 90% of the total demand side. On analyzing demand side numbers it was found that Masons, Carpenters, Electricians, Bar Binders and Machine Operators are the top five job trades that the industry needs by FY 2022. Hence, it is important that NSDC drives skill development initiatives specifically for these trades. Apart from skill related training, the industry recommends trainings on safety and quality for the blue collared workforce employed by the industry. The report further proposes active involvement of NSDC in organizing and consolidating the sourcing process in the industry. In order to achieve the same, specific initiatives such as creating common industry certifications, labour self-help groups, awareness programs and labour databases have been outlined in the report.

Contents

I. Introduction II. Approach and Methodology

Pg
Pg

1 4

Construction and Maintenance III. Supply Side Analysis IV. Consolidated Demand Across Job Categories (FY 2022) V. Category 1: Transport Infrastructure Pg 7

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VI. Category 2: Energy Infrastructure


VII. Category 3: Communication Infrastructure VIII. Category 4:Water and Sanitation Infrastructure

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IX. Category 5: Social and Commercial Infrastructure


X. Supply Demand Gap Analysis XI. Industry Speak Operations XII. Operations

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Pg 113

Construction Maintenance & Operations Conclusion & Pg 134 Recommendations Annexure Pg 141

List of Figures
Figure No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 Infrastructure Industry Value (In Bn USD) Construction Value as a % of GDP Break-up of Infrastructure Investment by the Public and Private Sector Current industry Split Current Trained Manpower Scenario ITI / ITC Seat Distribution Seats at ITI and ITC that cater to Construction Polytechnics: Skills applicable to Construction Manpower Requirements for Infrastructure sector Manpower Distribution 2022 Critical skills requirement in Infrastructure Sector Total Road Construction based on Km constructed per day Number of passengers handled per day Flights and Cargo handled per day Electrification and Route Km added in Railways 2022 Traffic and Capacity Projection for Indian Ports Manpower Requirements for Transport Sector Power required by generation type Transmission Lines required y-o-y Additional Oil and Gas Pipelines to be constructed Required Oil and Gas Storage Manpower requirement for Energy Sector Telecom Connections Manpower Requirements for Transport Sector Water Pipeline Requirement y-o-y and Maintenance (km) Amount of Water to be Treated y-o-y to Meet Requirements Sewage Pipeline Requirement at end of each year (km) Storm Water Drainage Construction Solid Waste and Sewage generated y-o-y Length of Canals required by end of each year (km) Number of Check Dams required every year Manpower Requirements For Water and Sanitation Sector Primary Enrollment Secondary Enrollment Tertiary Enrollment Higher Education Enrollment Beds Created Vs Beds Required Fertilizer: Demand vs Production Current and Projected Storage Requirements Gap between required Cold Storage facilities and constructed at growth rate of 15% Manpower Requirements For Social and Commercial Infrastructure Consolidated Manpower Demand Toll Operations Manpower Split for Operations in Roads Manpower requirement for Operations in Roads across levels Figure Description Page No. 2 2 3 7 7 7 8 8 10 11 12 17 21 21 25 29 33 37 38 44 45 51 55 58 63 66 69 73 77 81 82 85 89 90 90 91 94 99 103 104 106 117 117 117

List of Figures
Figure No. 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 Figure Description Consolidated Manpower Demand Power Operations Manpower Split for Operations in Power Sector Manpower requirement for Operations in Power Sector across levels Consolidated Manpower Demand - Oil & Gas Operations Manpower Split for Operations in Oil & Gas Sector Manpower requirement for Operations in Oil & Gas Sector across levels Consolidated Manpower Demand Telecommunication Operations Manpower Split for Operations in Telecommunication Sector Manpower requirement for Operations in Telecommunication Sector across levels Consolidated Manpower Demand Water Treatment Operations Manpower Split for Operations in Water Treatment Sector Manpower requirement for Operations in Water Treatment Sector across levels Consolidated Manpower Demand Solid Waste Management Operations Manpower Split for Operations in Solid Waste Management Sector Manpower requirement for Operations in Solid Waste Management Sector across levels Consolidated Manpower Demand Hospital Operations Manpower Split for Operations in Hospital Sector Manpower requirement for Operations in Hospital Sector across levels Consolidated Manpower Demand Fertilizer Operations Manpower Split for Operations in Fertilizer Sector Manpower requirement for Operations in Fertilizer Sector across levels Consolidated Manpower Demand SEZ and Industrial Operations Manpower Split for Operations in SEZ and Industrial Sector Manpower requirement for Operations in SEZ and Industrial Sector across levels Recommendations for NSDC Proposed Linkages between recommendations and NSDC Page No. 119 119 119 121 121 121 123 123 123 125 125 125 127 127 127 129 129 129 131 131 131 133 133 133 135 135

List of Tables
Figure No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 Infrastructure Industry Value (In Bn USD) Construction Value as a % of GDP Break-up of Infrastructure Investment by the Public and Private Sector Current industry Split Current Trained Manpower Scenario ITI / ITC Seat Distribution Seats at ITI and ITC that cater to Construction Polytechnics: Skills applicable to Construction Manpower Requirements for Infrastructure sector Manpower Distribution 2022 Critical skills requirement in Infrastructure Sector Total Road Construction based on Km constructed per day Number of passengers handled per day Flights and Cargo handled per day Electrification and Route Km added in Railways 2022 Traffic and Capacity Projection for Indian Ports Manpower Requirements for Transport Sector Power required by generation type Transmission Lines required y-o-y Additional Oil and Gas Pipelines to be constructed Required Oil and Gas Storage Manpower requirement for Energy Sector Telecom Connections Manpower Requirements for Communication Sector Water Pipeline Requirement y-o-y and Maintenance (km) Amount of Water to be Treated y-o-y to Meet Requirements Sewage Pipeline Requirement at end of each year (km) Storm Water Drainage Construction Solid Waste and Sewage generated y-o-y Length of Canals required by end of each year (km) Number of Check Dams required to be constructed every year Manpower Requirements For Water and Sanitation Sector Primary Enrollment Secondary Enrollment Tertiary Enrollment Higher Education Enrollment Beds Created Vs Beds Required Fertilizer: Demand vs Production Gap between required Cold Storage facilities and constructed at growth rate of 15% Manpower Requirements For Social and Commercial Infrastructure Supply Side Manpower distribution across sectors for 2010 (32 Mn) based on 2022 manpower distribution projections Supply Side Manpower distribution for 2022 Consolidated Manpower Demand Toll Operations Manpower Split for Operations in Roads Manpower requirement for Operations in Roads across levels Figure Description Page No. 2 2 3 7 7 7 8 8 10 11 12 17 21 21 25 29 33 37 38 44 45 51 55 58 63 66 69 73 77 81 82 85 89 90 90 91 94 99 104 106 108 108 117 117 117

List of Tables
Figure No. 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 Figure Description Consolidated Manpower Demand Power Operations Manpower Split for Operations in Power Sector Manpower requirement for Operations in Power Sector across levels Consolidated Manpower Demand - Oil & Gas Operations Manpower Split for Operations in Oil & Gas Sector Manpower requirement for Operations in Oil & Gas Sector across levels Consolidated Manpower Demand Telecommunication Operations Manpower Split for Operations in Telecommunication Sector Manpower requirement for Operations in Telecommunication Sector across levels Consolidated Manpower Demand Water Treatment Operations Manpower Split for Operations in Water Treatment Sector Manpower requirement for Operations in Water Treatment Sector across levels Consolidated Manpower Demand Solid Waste Management Operations Manpower Split for Operations in Solid Waste Management Sector Manpower requirement for Operations in Solid Waste Management Sector across levels Consolidated Manpower Demand Hospital Operations Manpower Split for Operations in Hospital Sector Manpower requirement for Operations in Hospital Sector across levels Consolidated Manpower Demand Fertilizer Operations Manpower Split for Operations in Fertilizer Sector Manpower requirement for Operations in Fertilizer Sector across levels Consolidated Manpower Demand SEZ and Industrial Operations Manpower Split for Operations in SEZ and Industrial Sector Manpower requirement for Operations in SEZ and Industrial Sector across levels Recommendations for NSDC Proposed Linkages between recommendations and NSDC Page No. 119 119 119 121 121 121 123 123 123 125 125 125 127 127 127 129 129 129 131 131 131 133 133 133 135 135

Introduction

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Introduction

Objective of the Study


NSDC has been mandated to train 150 Mn people by 2022, therefore it is imperative for it to map the current terrain of the Indian labor force, trade wise. Through this study, NSDC would be able to prioritize and focus more on infrastructure sectors which require skilled manpower and thereby initiate appropriate skills development initiatives. In order to achieve the same NSDC has mandated Aon Hewitt to estimate and forecast the Skill needs of the Infrastructure Development Sectors in India till the year 2022.

Infrastructure growth in India


India has been maintaining a real growth forecast of 7.7% for the financial year FY 2010 [1], based on industrial and agricultural growth. However, the sustenance of such a high growth rate is dependent upon the development of infrastructural capabilities. With India lagging behind in the development of Infrastructure compared to other developing nations, high growth in this sector is inevitable in the years to come. Analyzing the last few years data on the Indian Infrastructure industry it was established by the Reserve Bank of India (RBI) that between FY 2004 to FY 2009 the average real growth has been an impressive 12.28% (y-o-y) [1]. This reflects the countrys continued need for investing in transport infrastructure, electricity generating capacity and housing, as well as build-up of industrial capacity, also reflected in the charts on the following page.

However, the sector was hit by risk aversion post FY 2009 with growth dropping to its lowest levels since the early years of the decade. Over this period private sector investment dropped substantially in tandem with the global economic slowdown. Conversely, due to the governments investment in infrastructure and large number of local players, investment continued in the sector, growth remained robust, although somewhat reduced from previous double-digit highs. Now as the macroeconomic environment improves, private investors have stepped back on the scene, from construction companies to private equity firms, all are drawn in by strong population and economic fundamentals driving demand for infrastructure. In the 11th Five Year Plan India targets an investment of US$ 427.453 Bn for infrastructure, including utilities and transport infrastructure as well as telecom and irrigation. Even amidst a difficult economic environment, investments were up to expectation and during the mid year review of the 11th five year plan, India still targeted an investment of US$ 453.856 Bn with a marginal difference of US$ 453 Mn. [1] [2]

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Introduction

Figure 1: Infrastructure Industry Value (In Bn USD)


400 300 200 100 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 36.6 44.7 48.1 60.5 72.5 93.1 123.4 156.3 186.5 217.8 249.5 284.9 371.1 324.8

Infrastructure Industry Value ( In Bn USD)

Infrastructure Industry Value ( In Bn USD)


Source: Aon Hewitt Analysis, BMI

Private Sector Participation


One of the essential elements of the burgeoning Indian infrastructure is the ever increasing private sector participation and investments in building infrastructure. The government has appreciated and understood the role of private players in building and developing infrastructural space. To accommodate the private players, the government has embarked upon deregularizing the sector. This has encouraged FDI inflow and has led to a number of PPP (Public Private Partnership) as well as BOT (Build Operate Transfer) projects. With opportunities aplenty, the sectors which are envisaged to fuel the infrastructure sectors growth are Airports, Telecom and Ports. These sectors are where the majority of private investment is being channeled .

Figure 2: Construction Value as a % of GDP

Construction Value as a % of GDP

9.5 9 8.5 8 7.5 7 2008 2009 2010 2011 2012 2013 2014 7.7 8.1 8.2 7.9 8.4 8.8 8.9

9.1

9.1

2015

2016

Construction Value as a % of GDP


Source: Aon Hewitt Analysis, BMI

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Introduction
Figure 3: Break-up of Infrastructure Investment by the Public and Private Sector Infrastructure Investment
100% 100% 80% 80% 60% 40% 26% 20% 20% 0% 0% Pow er Roads Railw ays Irrigation Water Sectors Ports Airports Storage Gas Telecom 3% 36% 26% 39% 32% 28% 74% 64% 97% 82% 74% 68% 61% 50% 50%

Investment Break-Up

Source: Aon Hewitt Analysis, BMI


Public Private

Future Outlook
Major impetus for Indias GDP growth in the near future is from the infrastructure sector and to support this, the finance minister, along with the planning commission, has announced a target for US$ 1 Trillion of investments during the 12th Five Year Plan. [1] Doubling the investment from the 11th Five Year Plan, the abrupt increase in investment is for the envisioned sustained GDP growth rate of 10% per year between FY 2012 and FY 2018. However, in the 12th Five Year Plan, the government is targeting that 50% of investment will come from the private sector, which amounts to US$ 500 Bn. [1]

potential for growth in the infrastructure sector.

With demand secured and set to continue growing, access to finance is presenting one of the greatest obstacles to infrastructure development. This is set to improve as the government tries to incorporate innovative and diverse funding methods for the sector, such as PPP, BOT among others. Finally, continued demand growth from a rapidly expanding population and strong economic growth will continue to fuel investment opportunities and in turn drive construction activity.

Construction industry as a whole is expected to continue to grow at 7.5% , between FY 2011 and FY 2015 [1]. Infrastructure sector being a part of the construction industry will follow the same trend. The growth in the industry would be driven by continued improvements in the countrys business environment. This would lead to disbursal of funds into the sector, facilitate private sector investment, and ensure that investment targets are met at an improved rate.

Currently, one of the biggest concern for the Indian infrastructure players is and will be access to finance. Local bank capacity is not really up to providing the sort of long-term financing needed to support infrastructure projects. Due to the long-term nature of most projects, loans have a term of more than 10 years. However, due to underdeveloped nature of Indian capital markets, a lack of precedent for long-term loans, limited liquidity and the fact that banks' funds mature over the medium term, local banks are unable to provide this type of financing. Due to obstacles in Indias business environment, the country is failing to unlock the full

The above scenario reflects the growth at which the Indian Infrastructure industry is expected to perform in years to come. If these expectations are true, the industry would require trained manpower across various job trades to execute large scale projects.

Approach and Methodology

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Approach and Methodology

Module 1: Input
As a first phase of the project, i.e. manpower demand-supply gap projection, Aon Hewitt undertook an exercise to study and understand the requirements for the identified sub-sectors in terms of the skills required and the quantity of manpower for these sectors. In order to calculate the manpower demand, a two-pronged approach was incorporated, encompassing: 1. Understanding the process for infrastructure development and maintenance in the identified sectors / sub-sectors, and the manning norms that are followed in India for the same 2. Projecting the infrastructure development and maintenance requirements for each of the sub-sectors till the year 2022

Phase 1: Defining Processes and Manning Norms


In defining the processes and manning norms, the construction processes were delineated. These processes were integral to the infrastructure development and maintenance for the sub-sectors identified as a part of the scope of this project. Associated manpower requirements both in terms of trades and numbers for each trade were derived in consultation with industry experts and prominent industry players in the sectors / subsectors. The derived manpower numbers are against a defined unit of measurement that can be extrapolated. The units of measurement defined, differ by sub-sector. If in any particular sub-sector manning was in the form of man-days , manpower numbers are achieved by assuming that a worker works for 210 days in a year removing annual vacations, sick leaves and weakly offs. Moreover, to substantiate our findings and gain further our insights into the industry, interactions with industry / sector subject matter were conducted.

Phase

2:

Projecting

Infrastructure

Development

And

Maintenance Requirements
The second phase involved collection of data to forecast the infrastructure development and maintenance requirement for each of the sub-sectors identified as a part of this study We could expect it by 2022.

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Approach and Methodology

Module 1: Input (Continued)


The developmental Ministries, relevant goals (as defined by industry bodies, donor

Module 2: Supply Side Estimation


For defining the supply side manpower output, we undertook information collection form various sources, which included primary and secondary sources. Through these we have tried defining the current trends and projections for 2022..

agencies, among others) and funds being granted for the development of a sector formed one critical input on which projections are based.

Further, the current infrastructure data for each sector was collected and used as a base over which the projection calculations were done. The net increase (based on the policy measures and investments foreseen) projections have been made, and it shows that growth in the sector might not follow a linear path.

Key Steps: Manpower Output


The first step involved, identifying areas from where manpower is currently being employed, trends and qualitative inputs about the manpower. We captured information on the key skill sets that major organizations in the infrastructure sector focus on, and foresee a requirement in the future.

Data Sources used were Industry reports, and other secondary data sources ( websites of the relevant ministries, development funding organizations etc ) to capture and analyze the existing infrastructure landscape across sectors. Reference to all documents and reports have been included and provided in the reference section of the report.

As a second step of this module a study of the current trends in vocational training institutes was carried out. This included understanding the major skill sets in demand, and capturing insights from training institutes and the relevant government bodies (ministries etc.) around the planned increases (if any) in the intake of student and addition of new courses for newer skill sets. Acoordimg to the above inputs we have developed projections for skills and manpower requirements for 2022 for the infrastructure industry. These projections focus on the number of skilled workers as well as the major skill sets that would be available by 2022.

Phase

3:

Projecting

Manpower

Requirements
Final manpower numbers are a combination of the outputs from Phase I and Phase II of this module. The manning norms for all processes across sub-sectors were extrapolated in accordance with the projections made for each sub-sector, keeping the current existing state of infrastructure as the base.

Data Sources used were Secondary data sources to gather current output of vocationally trained manpower and trends cited. Primary data resources were used for analyzing key trends and projections for 2022, i.e. interactions with industrial firms.

The final output provides the skills required for each sub-sector, and the projected numbers that would be required to bring about the projected development and maintenance.

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Approach and Methodology

Module 3: Skill Gap Analysis


This is the final module of the project and aims at analyzing the outputs derived from the previous modules and presenting a detailed analysis of findings. The final output is centered on the following aspects:

The module analyzes the demand for various types of skills in the market and the availability of the same in the current system. We also analyzed the expected growth these skills could witness. The estimations account for certain skills falling out of demand or showing an increased demand from the market perspective. Finally, the analysis includes our analysis into the expected manpower requirement (in terms of absolute numbers) in 2022 based on the requirements and infrastructure development plans that the various sub-sectors would witness.

In conclusion, skills sets across all sectors have been aggregated and compared against the proposed supply needed based on the projections. Furthermore, recommendations on the basis of gaps foreseen for the various sub sectors for the year 2022 have been made. These recommendations center on the theme of skills and talent development to meet the needs for the year 2022 and initiatives NSDC can launch. A roadmap is suggested to define the path that NSDC and other government bodies need to undertake for realizing the targets in terms of skills required.

Supply Side Analysis

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Supply Side Analysis


As per Aon Hewitts primary research it is established that the construction industry employs around 40 Mn people, of which 80% are involved in infrastructure construction and maintenance, i.e. 32 Mn. Further, basis Aon Hewitt research and analysis only 3%-5% of the 32 Mn have received any formal training or certification in the necessary trades. (Figure. 4) Figure 4: Construction Industry Split
100% 8 Mn 80% 60% 40% 20% 0% Construction Industry
Infrastructure Construction Residential and other construction

1.6 Mn Trained or formally certified

32 Mn

Source: Aon Hewitt Analysis

The industry operates on a norm of 1:4 skilled to unskilled ratio. Thus the number of trained and certified workforce required is 6.4 Mn. However, with only 3-5% of 32 Mn formally trained or certified, a gap of 5.12 Mn trained personnel exists in the current workforce (Figure 5)

Figure 5: Current Trained Manpower Scenario


7 6 6.40

Manpower

5 4 3 2 1 0 Formally Trained / Certified (Mn) Actual Requirement Mn) 1.28

Figure 6: ITI / ITC Seat Distribution


1 0.46 M n

Number of Seats

0.74 M n

0 ITI / ITC Seat Split (M n)


Seats suitable for Construction Others

Source: Aon Hewitt Analysis, Directorate General of Employment & Training and CIDC

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Supply Side Analysis

A study of the supply side reveals that ITIs and ITCs as Figure 7: Seats at ITI and ITC that cater to Construction
Electrician

on April 2011 had 1.2 Mn seats catering to various skill sets, however, only 0.74 Mn seats were identified as suitable for construction industry (Figure 7). Of the 0.74 Mn majority of the seats are concentrated towards electricians and foremen (Figure 7). Our primary data insights also indicate that even for the 0.74 Mn persons graduating from ITIs/ITCs, construction is not an industry of choice, given its unorganized nature. Thus electricians, and other such tradesmen would rather seek employment in industries such as automotive components, than join a construction firm. Polytechnics form another source of personnel for the

3% 5% 5% 4% 43%

Fitter Welder Wireman Draughtsman (Civil) Welder (Gas & Electric) Carpenter Building Constructor Architectural Assistant Mason (Building Constructor) Painter (General) Sanitary Hardware Fitter Surveyor

37%

construction industry. According to the Aon Hewitt analysis it was established that only 0.05 Mn people are trained / certified through them, who are suitable for the construction industry. However, the output hardly caters to the need of the construction industry. (Figure.8) Further, with increasing time constraints in the industry, moving forward technology adoption for construction would gain pace. This would result in requirement of skilled certified personnel. With majority of workforce

Source: Directorate General of Employment & Training

Figure 8: Polytechnics: Skills applicable to Construction


Polytechnics -Skills applicable to Construction 3% 4%
Civil Engg

Mech. Engg.

27%
Electrical Engg.

28%
Architectural Assistantship Civil Engg & Planning Instrum entation

unskilled, the skill gap is bound to increase, and the skilled to unskilled assured to decrease. After establishing the fact that only 4% of the current workforce employed in the construction industry is actually skilled, it can be inferred that out of the 32 Mn people involved in the infrastructure sector 30.72 Mn have the potential to be either up-skilled or get some formal training. Moreover, with a skill requirement of 6.4 Mn in construction of infrastructure as of today and the demand expect to grow in the coming years; supply of skilled labor remains a primary concern, or else India might end up facing labor shortage in a nation with a population of 1.15 Bn. For the past eight years the ITIs / ITCs have had a CAGR of 7.63%. If current trends are continued, the projected output for 2022 would be 1.63 Mn trained personnel suitable for working in construction.

38%

Consolidated Demand across Job Categories (FY 2022)

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Consolidated Demand across Job Categories (FY 2022)


In analyzing the demand for various skills, across the five infrastructure sectors, 22 number of trades were studied. This section synthesizes the skills needs across various sectors, and also highlights the key skills requirements for each sector.

Currently with an employee base of 32 Mn, the Infrastructure sector is representative of 2.8% of the population. With the growth projected in the infrastructure sectors, the projected manpower requirement for the sector is 87.02 Mn in 2022, an additional manpower of 55 Mn over 2010. The table below shows the critical skills as well as manpower requirements for these skills in 2022. These skills are segmented by each sector to provide greater insight into specific skills to be developed by each sector. Table 1: Critical Skills across Sectors
Manpower Requirements in 2022 657,000 370,000 450,000 517,000 2,368,000 1,485,000 1,266,000 2,936,000 1,223,000 303,000 304,000 174,000 1,246,000 1,672,000 1,561,000 746,000 806,000

Sector Mason Energy Infrastructure

Critical Skills

Electrical Welder Supervisor / Foreman Mason

Social and Commercial Infrastructure

Carpenter Electrical Supervisor / Foreman Painter Mason

Transport Infrastructure Communication Infrastructure

Machine Operator Machine Driver Supervisor / Foreman Machine Operator

Water and Sanitation Infrastructure

Supervisor / Foreman Bar Binder / Bender Technical / Engineer

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Consolidated Demand across Job Categories (FY 2022)

Figure 9 : Manpower Requirements For Infrastructure Sector

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36.43 30.57 25.93 21.11

Manpower (Million)

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14.80 10.90 9.46 10.6211.40 4.57 6.66 1.73 9.71 4.45 8.38

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0 Social & Commercial Infra Water & sanitation Transport Energy Telecommunication

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2017

2022

Social & Commercial Manpower Requirements 26 Mn (2012) 36.4 Mn (2022) Critical Skills Mason, Electrician and Carpenter

Water & Sanitation Manpower Requirements 10.9 Mn (2012) 21 Mn (2022) Critical Skills Machine Operator, Supervisor / Foreman and Bar Binder / Bender

Transport Manpower Requirements 9.46 Mn (2012) 11.4 Mn (2022) Critical Skills Supervisor/ Foreman, Machine Operator and Technical / Engineer

Energy Manpower Requirements 4.57 Mn (2012) 9.71 Mn (2022) Critical Skills Mason, Electrician and Welder

Telecommunication Manpower Requirements 1.73 Mn (2012) 8.4 Mn (2022) Critical Skills Supervisor / Foreman, Machine, Operator and Electrician

Based on the chart above, Social and Commercial Infrastructure is expected to generate the largest demand for blue collared workforce.

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Consolidated Demand across Job Categories (FY 2022)


Figure 10: Manpower Distribution 2022
Millions

100 80 60 40 20 0 Manpower Distribution 2022 Unskilled Semi Skilled Skilled Executive 48.23 17.05 18.49 7.169

The above chart titled depicts the manpower distribution as it will be required in 2022 at various levels, that is unskilled,

semi-skilled, skilled and. executive. The definition for each level have been provided in the table below.

Table 2: Manpower Level Definition


Level Definition This level requires formal training and higher education. Their tasks would include designing , supervising and basic engineering. The trades included are Architects, Draftsmen, Supervisor / Foreman, Technical / Entry level engineer and Surveyor

Executive

Skilled

The skilled category would be a skilled tradesman with 4-5 years of industry experience. The trades included are Mason, Carpenter, Plumber, Electrician, Bar Binder/ Bender, Blacksmith, Welder, Machine Operator, Machine Driver, Painter, Glazier, Fitter, Erection Gang, and Radiographer

Semi Skilled

Semi skilled tradesman would also be involved in similar work as that of a skilled labor such as a mason, carpenter etc. but will be in an apprenticeship position and would be learning the craft as an assistant to a senior/skilled craftsman such as a mason or a carpenter

Unskilled

An unskilled laborer is one of the construction trades which generally does mechanical/manual work and does not require any specific skill set. These laborers are generally assistants to the skilled craftsmen, and are deployed to assist and accompany them during construction and maintenance activities

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Consolidated Demand across Job Categories (FY 2022)

Furthermore, the report brings forth the critical job trades which require focused attention. Out of the 22 job trades analyzed, there are eighteen job trades that are of critical importance going forward (Chart below). The top five skilled trades that would be in highest in terms of demand are Masons, Carpenter, Electrician, Painter and Machine operators . Taking into account the Executive level, the critical skills generating the maximum demand are Supervisor/Foreman and Technical/Engineer. The manpower estimates have been based on the assumption that each person would be working 210 days in a year. This aspect takes into account all the leaves and other exigencies that might arise through the year.

It was also observed that the demand of these job trades varied regionally (state-wise) within India. Analyzing this sector variance, especially for roads, SEZ (industrial area) and energy projects, top five skills of each state were found ( refer table below). Further, as one can see, that masons and machine operators are the top two trades that are in demand for every state (Table 4).

Figure 11: Critical Skills Requirement in the Infrastructure Sector (Millions) Skilled Labor
Erection Gang, 0.03 Mason, 4.2

Executive
Architect / Designer, 0.10 Draftsman, 0.04 Technical / Engineer, 2.47

Fitter, 0.86 Glazier, 1.34

Painter, 1.94

Machine Driver, 0.34

Surveyor, 0.31
Machine Operator, 2.16 Carpenter, 2.31

Welder, 0.88 Blacksmith, 0.03 Bar Binder/ Bender, 1.65

Plumber, 1.04 Electrician, 1.71

Supervisor/ Foreman 6.44

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Consolidated Demand across Job Categories (FY 2022): Demand Break-Up


Table 3: Consolidated Manpower Estimations for Infrastructure Sector
Electricity Generation Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 64,000 29,000 3,342,000 216,000 2,487,000 1,499,000 772,000 1,136,000 1,208,000 36,000 491,000 1,172,000 222,000 1,133,000 940,000 502,000 17,000 21,000 1,473,000 842,000 693,000 840,000 252,000 169,000 176,000 193,000 300,000 752,000 177,000 171,000 1,451,000 11,000 1,000 68,000 8,000 5,000 29,697,000 52,570,000 2017 77,000 35,000 4,593,000 258,000 3,119,000 1,809,000 941,000 1,436,000 1,466,000 46,000 646,000 1,659,000 270,000 1,385,000 1,136,000 662,000 26,000 40,000 1,857,000 1,066,000 864,000 1,039,000 318,000 214,000 219,000 248,000 373,000 912,000 229,000 227,000 1,888,000 17,000 1,000 99,000 12,000 6,000 37,893,000 67,090,000 2022 95,000 42,000 6,445,000 309,000 3,947,000 2,229,000 1,155,000 1,842,000 1,839,000 26,000 855,000 2,422,000 336,000 1,711,000 1,384,000 874,000 33,000 44,000 2,275,000 1,352,000 1,069,000 1,287,000 381,000 254,000 269,000 306,000 456,000 1,105,000 300,000 294,000 2,471,000 23,000 1,000 143,000 18,000 9,000 49,423,000 87,020,000

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Consolidated Demand Analysis (FY 2022): Regional Demand Break-Up


Table 4: Regional Manpower Estimations for Infrastructure Sector*

States

Top Five Skills

Masons

Electrical

Carpenter

Plumber

Welder

Bar Binder

Painter

Fitter

Machine operator

Glazier

Andhra Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal Chandigarh Dadra and Nagar Haveli Daman and Diu Lakshadweep National Capital Territory of Delhi *Refer to Annexure 2

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Category 1: Transport Infrastructure

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Category 1: Transport Infrastructure

Transport Infrastructure
The Indian transport sector being large and diverse, caters to the needs of 1.15 Bn people. Since the early 1990s, India's growing economy has witnessed a rise in demand for transport infrastructure and services. In 2007, the sector contributed about 5.5% to the nations GDP, with road transportation contributing majority of the share [4] [5] .

India is home to 40 Mn passenger vehicles. More than 3.7 Mn automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second fastest growing automobile market in the world[5]. However, public transport still remains the primary mode of transport for most of the population, and India's public transport systems are among the most heavily utilised in the world. Indian rail network is the longest and the fourth most heavily used system in the world transporting over 6 Bn passengers and over 350 Mn tons of freight annually[4]. Indias external trade, as a proportion of gross domestic product (GDP) has more than doubled in the last 10 years and is close to 40%. Bulk of this international trade is carried through shipping. Around 95% of Indias foreign trade by volume and 70% by value is transported through sea [6].

With a booming population, growing economy and a demanding import and export sector Indias transport infrastructure is under immense strain. The sector has not been able to keep pace with rising demand and is proving to be a drag on the economy. While some modes of transport are experiencing boom in investments, others are falling short of targets.

It was observed that high level of bureaucratic procedures and inefficient planning regulations have lead to stalling of project approvals, and hence the project itself. The bottlenecks in transport infrastructure investment have meant that investment has fallen short of targets under the 11th five year plan. The demand for transport infrastructure and services has been rising by around 10% a year with the current infrastructure being unable to meet these growing demands. According to recent estimates by Goldman Sachs, India will need to spend US$ 1.7 Trillion on infrastructure projects over the next decade to boost economic growth of which US$ 500 Bn is budgeted to be spent during the Eleventh Five-Year Plan [7].

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Roads and Bridges

Indias

strong

population

growth

and

emergent

economy are fueling demand for infrastructure. One of the critical factors driving the Indian infrastructure market is transportation. Ferrying 90% of the countrys passengers and 65% of the total cargo, roads serve as an important medium of transportation . Indias road infrastructure as on 2008-09 was 3.32 Mn km, of which 1.6 Mn km was paved. With growing economy and standards of living, car ownership has also seen an increase [1]. For 2009, 6.7% of the population owned a car, with projection of 11.1% for 2014, with the increasing car ownership; India would need to invest in expanding the road network to avoid congestion in urban areas [1]. National Highways, which constitutes just 2.12% (70,548 km) of the total road infrastructure layout in the country, caters to 40 % of the traffic movement. With freight projected to grow by 13% per year to fuel Indias economic growth, there is an urgent need to construct more roads [8] [9].

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Transport Infrastructure: Roads and Bridges


Table 5: Current and Projected Road Construction and maintenance across Road Categories
Roads Current situation New Construction Current construction rate 12.5 km/day 4% 13.5 (2012) to 20 (2022) km/day State Highways Maintenance Total Km to be Maintained is 128,000 5% 6400 km / year District Roads Maintenance Total Km to be Maintained is 470,0000 5% 23,500 km / year Rural Roads Maintenance Total Km to be Maintained is 2,650,000 3% 79,500 km / year

Projections

Source: Ministry of Road transport and Highways of India; Aon Hewitt Analysis

Total road construction based on Km constructed per day


Figure 12: Total Road Construction based on Km constructed per day

Total Kilometers Constructed

8000 7000 6000 5000 4000 3000 2000 1000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Total added per year Kilometers added per day

25 20 15 10 5 0

Source: Aon Hewitt Analysis

Roads have been an underperformer in the 11th year plan, in terms of driving investments from private sources and in terms of growth. With a target of 50 % investment from private sources, only 16% has flowed in. A number of issues have hindered investment in this sector: issues with land rights, complex and convoluted bureaucracy is slowing down planning and tendering processes[1]. Due to obstacles in Indias business environment, the country is failing to unlock the full scale of potential for growth in the infrastructure sector.

Roads infrastructure construction for 2010 was at 12.5 km per day (table 5). However, moving forward and envisaging bottlenecks constraining the development of roads to be removed a growth rate of 4% YoY has been projected. Basis this growth rate, by 2022, average road constructed per day would be 20 km. In India, three categories of roads exist apart from the National Highways : State Highways, District Roads and Rural Roads. Moving forward, it has been assumed according to annual reports of Ministry of Road Transport

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Kilometers constructed per day

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Transport Infrastructure: Roads and Bridges

Highways that new construction would mainly be focused on National Highways. Moreover, the total length of State Highways, District Roads and Rural Roads has remained constant for the past four years. Hence, it is assumed that the total length of the network would follow the same trend in the future. Furthermore, for maintenance of roads basis table 1, it is projected that in any year 5% of state highways (6,400 km) and district roads (23,500 km) would be under maintenance. As for rural roads, due to the vast coverage and difficultly of access, it is projected that 3% (79,500 km) of the total length would be under maintenance every year. Therefore, in order to ensure a balanced development of the total road network in the country, merely constructing a strong road infrastructure is not sufficient. The carrying capacity of the existing road network as well as quality of the riding surface also need to be improved substantially. Manpower calculations for construction and maintenance of new roads is based on inputs received from SMEs (subject matter experts). The projections and maintenance numbers have been drawn in consultation with industry experts and organizations.

For maintenance manpower calculations, not all steps involved in new road construction are considered. Certain steps get omitted due to the existence of basic road infrastructure . Given the new road construction and maintenance projections, 7.5Mn workforce would be required in 2022 an addition of 86,000 workforce over 2012. Furthermore, in 2012, based on primary research skilled to unskilled ratio has been assumed to be at 1:5. However, moving forward it is assumed that adoption of technology and improving productivity would reduce the ratio to 1:3 in 2022. The manpower required for road construction and maintenance based on Aon Hewitts analysis and SME inputs is shown on the following page( table 6).

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Transport Infrastructure: Roads and Bridges


Table 6: Manpower Estimations for Roads and Bridges
Roads and Bridges Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrical Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 2,600 5,100 79,500 148,000 122,000 1,400 4,900 25,800 1,400 199,000 104,000 68,000 25,800 185,000 2,000 14,700 38,800 14,700 14,900 113,000 68,000 38,800 6,125,000 7,400,000 2017 2,900 5,700 88,500 165,000 149,000 1,600 5,400 33,500 1,600 222,000 116,000 79,900 33,500 227,000 2,400 16,300 50,200 16,300 16,600 125,000 79,900 50,200 5,935,000 7,420,000 2022 3,200 6,400 97,900 182,000 184,000 1,900 6,000 43,200 1,900 247,000 128,000 93,800 43,200 278,000 2,800 18,000 64,800 18,000 18,400 138,000 93,800 64,800 5,752,000 7,490,000

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Airports

India is currently the 9th largest aviation market in the world, supported by 136 airports, of which 14 are international airports. Further, operated under Airports Authority of India (AAI) are 128 airports of which 14 international airports handle 80% of aircraft movement in the country, 87% of passenger traffic and 97% of freight traffic. With India witnessing substantial growth in international and domestic trade over the past few years, this has resulted in a significant increase in the freight traffic handled by airports in the country. Indian Airports handle about 30% of the countrys total trade in terms of value. [10]

The other aspect of airports is tourism, which has registered a growth rate of 8%. With increase in disposable income in India, which has grown by 10.11% annually from 2001-2006, much of it has been spent on travel [11]. These factors coupled with increase in trade have seen aircraft movement at Indian airports increase at a CAGR of 15.4% between 200304 and 200809 [11].

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Transport Infrastructure: Airports

With steady GDP growth and a flourishing trade & tourism industry, the aviation sector is projected to be a clear outperformer in the transport sector, with annual average growth of 12.9% forecast for the sector between FY 2010/11 and FY 2014/15 [1]. This growth would be supported by a healthy growth in passenger

and cargo traffic per day (Figure 13 and 14) both domestically and internationally [11]. As per Finance departments report on the Aviation sector (2009), the passenger growth for the sector is expected to be 8.44% and cargo growth is expected to be 8.14%. This translates into flight handled growth rate of 10%.

Figure 13: Number of passengers handled per day

Thousands 1000 900 800 700 600 500 400 300 200 100 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Number of Passengers handled per day

Source: Department of Economic Affairs, Ministry of Finance, Government of India; Aon Hewitt Analysis

Flights Handled and Cargo Handled per day


Figure 14: Flights and Cargo handled per day

16000 14000
Number of Flights

16000 14000 12000 10000 8000 6000 4000 2000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Cargo Handled (tons)

12000 10000 8000 6000 4000 2000 0

Flights handled per day

Cargo Handled per day

Source: Department of Economic Affairs, Ministry of Finance, Government of India; Aon Hewitt Analysis

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Transport Infrastructure: Airports


Table 7: Projected Airport Area Construction and Maintenance
Airports Area addition at 10% Flight handled growth, 8.5% Passenger growth and 8% cargo growth (sq ft) Airport Maintenance of 5% of the total area for Airports (sq ft) 2012 2017 2022

6,921,000

10,785,000

16,814,000

4,135,000

6,368,000

9,915,000

Source: Department of Economic Affairs, Ministry of Finance, Government of India; Aon Hewitt Analysis

Manpower

calculations

for

construction

and

omitted and discounting of manpower made in certain steps, as the basic infrastructure would exist and only minor repair / maintenance would be required. Based on the norms, Aon Hewitt analysis and SME inputs, it has been projected that a total workforce of 98,300 ( an addition of 58,000 over 2012) would be required for construction and maintenance of Airport Infrastructure in 2022. The manpower required for Airport construction and maintenance is shown on the following page.

maintenance of Airports are based on the inputs received from SMEs (Subject Matter Experts). The norms for facilities within the airport building are defined in terms of area. In order to derive the norms for construction of airports and associated infrastructure, a national airport having international standards has been considered and calculations of total area to be constructed have been accordingly carried out. The norms considered for the purpose of all the calculations are, an area requirement of 51 sq.ft / passenger, cargo area of 437 sq.ft / ton and 10,632.61 sq.ft / flight. For the manpower calculations for maintenance of Airport infrastructure, it has been assumed that the area to be under maintenance would be 5% of the total built up area. Not all steps involved in new Airport construction are considered. Certain steps have been

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Table 8: Manpower Estimations for Airports
Airport Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 30 10 580 1,200 850 430 830 290 580 610 310 800 630 330 600 70 100 70 130 100 360 180 110 600 30,500 40,300 2017 60 20 1010 2,090 1,470 750 1,440 510 1,010 1,070 550 1,410 1,100 580 1,060 120 170 120 230 180 630 310 190 1,050 45,900 63,000 2022 80 40 1750 3,600 2,540 1280 2,480 880 1,750 1,840 950 2,440 1,900 1,010 1,810 220 290 220 400 300 1,080 540 320 1,800 68,800 98,300

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Railway & Urban Public Transport

Indian Railways along with National highways and Ports forms the backbone of Indias transport Infrastructure. It is estimated that more than 35% of the total freight movement of the country moves by railways [12]. However, freight movement registered a dismal scenario of less than 4% growth in both tonnage and net ton kilometer for the year 2010. Faced with a fundamental challenge of accelerating freight traffic growth to 8-9 %, for catering to the economic growth (GDP elasticity of 1.25), major initiatives are needed to plug the gap [13].

Moreover, India inherited 53,996 route km of rail network, which today stands at 64,099 km, an achievement of merely 10,000 km in 62 years[12]. With ambitious plans an increase on route kilometers at 1000 km per year has been envisioned, but only 206 km was covered during the April-December, 2010, period [14].

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Transport Infrastructure: Railways


Table 9: Projected Port Construction and Maintenance
Railways New Tracks constructed @ 4.5 % growth (km) Track maintenance at 10% of the total track length (km) 2012 6,300 7,150 2017 6,300 9,000 2022 6,300 10,850

Source: Railways Vision 2020; Aon Hewitt Analysis

Figure 15: Electrification and Route Km added in Railways


120000 100000

Railw ays: Electrification and Route Kms added

Kilometers

80000 60000 40000 20000 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Total Kms of Route Kms

Electrified kms

Source: Railways Vision 2020; Aon Hewitt Analysis

Furthermore,

to

drive

advancement

of

railways,

during the same time. The 6,300 km includes addition of 2,500 km of new lines, 1,400 km of electrification of existing lines, 1,200 km lines for Direct freight corridor and 1,200 km of conversion to broad gauge. As per the Vision, the projected growth rate for the Railways Infrastructure is 4.5% (table 9). Furthermore, urban rail projects have moved to the

electrification has seen major investment. Total track length was 113,617 km as on 2009, of which 48,639 km has been electrified [12]. However, for the 11th year plan electrification of 4,500 km has been envisaged, but only 2,416 km has been electrified in the first three years of the plan[14]. Projections for railway construction are based on Railways Vision 2020. Taking railways vision 2020, work has been projected on 6,300 km of railways track to be constructed year on year till 2022. Moreover, 50 world class railway station will also be constructed

forefront of transport investment due to inner city congestion. With increased urbanization, concentration on improving public transport system has been in focus. Hence, a major development in urban centers of India is envisaged in this sub-sector of railways.

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Transport Infrastructure: Railways

As for metro construction, based on Aon Hewitts primary research findings, for metro construction it is projected that year on year 50 km of metro railway line and associated 100 stations would be commissioned till 2022. The norms have been derived through Aon Hewitts primary research. The norms for railway station construction are based on statistics for New Delhi Railway Station, i.e. Footfall per day is 500,000 and Average area per passenger is 0.1937 Sq.ft. Maintenance of tracks and railway stations (also takes into account metros) is assumed at 10% of the total track length and the stations.

Based on these projections and SME inputs the total manpower requirement for construction and maintenance of Railways has been projected to be 1.01Mn in the year 2022 ( an addition of 284,000 over the year 2012). Based on SME inputs, the manpower requirements for Railway and Urban Public Transport is as follows:

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Table 10: Manpower Estimations for Railways and Metro
Railways & Metro Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrical Bar Binder/ Bender Blacksmith Welder Machine Operator Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrical Bar Binder/ Bender Blacksmith Welder Machine Operator Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 80 110 5,100 1,200 700 4,600 17 22 4,800 500 2,800 700 9,600 200 20 200 21,200 13,300 7,500 11,300 3,100 3,100 1,600 3,700 3,500 7,700 3,100 2,200 19,000 14,500 573,500 720,000 2017 90 120 6,300 1,500 800 5,800 30 43 6,000 700 3,500 900 12,000 300 30 300 40,000 26,300 14,800 22,200 5,900 6,200 3,100 7,400 6,800 15,100 6,200 4,100 26,400 16,100 650,700 890,000 2022 100 130 7,710 1,770 940 7,110 33 50 7,360 820 4,240 1,060 14,560 310 40 290 43,640 28,640 16,180 24,270 6,480 6,740 3,380 8,090 7,430 16,450 6,740 4,460 34,570 17,700 731,000 1,000,000

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Ports & Inland Waterways

Being one of the critical elements forming the backbone of the nations transportation system, ports handle 95% external trade by volume and 70% by value [6] [15]. While the total number of berths appears to be adequate to deal with current cargo turnover, the use of mechanized equipment for loading and unloading operations is limited, meaning that turnaround times are quite high and handling costs for general cargo and for containers are also high [1].

Furthermore, with coastline stretching, 7,517 km, India houses 13 major ports and 176 non-major ports [16]. However, of the 176 non-major ports, only 60 handle cargo [16]. Sustenance of Indias growth is dependent upon it increasing its share in world trade, which needs to be supported by its ports infrastructure. India's rapidly expanding trade requirements are expected to put immense strain on the country's existing port infrastructure, keeping in mind the expanding trade, the Planning Commission has planned to increase the tonnage throughput at the 13 major ports, i.e. to double it to 1Bn tons by 2012[1].

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Transport Infrastructure: Ports and Inland Waterways


Table 11: Projected Port Construction and Maintenance
Ports Capacity addition at 11% CAGR (Million Tons) Ports Maintained at 10% of the total Capacity (Million Tons) 2012 234 148 2017 169 276 2022 114 348

Source: Maritime Agenda 2010-2020, Ministry of Shipping, Government of India; Aon Hewitt Analysis

From 2003 to 2010, traffic through major ports grew at a Compounded Annual Growth Rate (CAGR) of 8.45% [16]. Traffic volumes at major ports increased from 345 Mn tons per annum to 561 Mn tons per annum, an increase of 63% [15]. The Shipping Ministry expects that traffic at major ports is likely to grow at a CAGR of 8.03% from 561 Mn tons in 2009-10 to 1,215 Mn tons by 2019-20, whereas the traffic at non-major ports is expected to grow at a CAGR of 16% from the present level of 289 Mn tons to 1,270 Mn tons [15]. Manpower calculations for construction and

As per the Maritime Agenda, the overall traffic at Indian ports is expected to grow at a CAGR of 11% ( Table 11). Furthermore, due to heavy volume handling and large wear and tear, it is assumed that Indian ports would require manpower similar to refurbishment, after every 10 years. Based on this assumption, it has been inferred that the Indian ports would have to be maintained at a rate of 10% of the total capacity ( Table 11). Maintenance of ports and inland waterways constitutes dredging and structural maintenance. The maintenance figures in Table 11 also include the structural maintenance statistics of the Inland waterways. Based on SME inputs and Aon Hewitt analysis, the total workforce requirement for port infrastructure construction and maintenance is expected to be 2.3 million ( an addition of 1.2 million over 2012).

maintenance of ports are based on the projections available in the Maritime Agenda 2010 - 2020 set by Ministry of shipping. The norms for port construction are based on the land distribution of Mumbai Port, i.e. Roads constitute 25%, Warehouses 40% and Industrial Infrastructure 35%.

Figure 16: 2022 Traffic and Capacity Projection for Indian Ports .
2000 1800 1600 1400 1200 1000 800 600 400 200 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Million Tons

Capacity -Major Ports

Traffic - Major Ports

Capacity - Non Major Ports

Traffic - Non Major Ports

Source: Ministry of Shipping, Government of India; Aon Hewitt Analysis

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Transport Infrastructure: Ports and Inland Waterways


Table 12: Projected Inland Waterways Construction and Maintenance
Inland Waterways Capacity addition at 10% growth (Million Tons) Inland Waterways Dredging Maintenance (Million Tons) 2012 7 2017 13 2022 18

0.3

0.3

0.3

Source: Inland Waterways Authority of India ; Aon Hewitt Analysis

Another, form of transport infrastructure is Inland Waterways and is highly popular in India for the movement of bulk cargo like coal, steel, cement, POL, fertilizers, food grains, stone chips, project cargo, edible oil etc. Currently, India has 14,500 km of navigable inland waterways of which 2,800 km has been developed for ferrying bulk cargo. These waterways have been catering to 55.82 Mn Tons in 2007-08 from 32.48 Mn Tons in 2003-04. Further, these waterways are divided as five national waterways namely NW 1/2/3/4/5 are spread over rivers of Ganga, Brahmaputra, Godavari and Krishna among others. [17] Two important activities that have been identified for infrastructure development in this sector namely construction of berths and jetties (terminal infrastructure) and deepening of trenches ( dredging). In order to calculate manpower for construction of Inland Waterways, projections made by the Inland

Waterways Authority of India have been considered. Going forward, Inland Waterways Authority of India plans to develop 1,700 km of Inland waterways in the country. Inland waterways have been projected to grow at 10% in terms of the volume of traffic ( Capacity in Mn Tons) that they cater to. For calculation of maintenance manpower, it has been assumed that the Inland waterways would require dredging of approximately 0.3 million tons of sediments every year. The construction of ports for inland waterways has been considered in port construction. Given the new inland waterways construction and maintenance projections, 0.54 Mn workforce would be required in 2022. This would require an additional manpower of 0.36 Mn over 2012. Based on SME inputs, the manpower projections for Ports and Inland Waterways are detailed on the next page.

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Transport Infrastructure: Ports


Table 13: Manpower Estimations for Ports
Port Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 1,200 600 12,800 1,800 44,700 15,600 8,000 13,400 13,200 2,900 4,500 1,600 14,000 11,000 10,200 40,800 10,100 6,800 9,700 10,000 2,500 6,400 3,300 4,000 9,600 2,300 9,500 12,600 801,000 1,080,000 2017 2,400 1,100 24,400 3,500 85,700 29,900 15,400 25,600 25,300 5,500 8,200 2,800 26,800 21,100 19,400 78,100 19,400 13,000 18,500 19,200 4,800 12,100 6,300 7,700 18,400 4,400 18,100 24,100 1,322,000 1,860,000 2022 3,200 1,500 32,800 4,700 115,200 40,200 20,700 34,400 34,000 7,400 10,900 3,700 36,000 28,400 26,100 105,000 26,100 17,400 24,900 25,800 6,500 16,300 8,500 10,400 24,700 5,900 24,400 32,400 1,543,000 2,270,000

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Transport Infrastructure: Inland Waterways


Table 14: Manpower Estimations for Inland Waterways
Inland Waterways Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 0 0 17,900 0 0 0 0 0 0 0 0 0 17,900 10,800 0 0 17,900 0 0 0 0 0 0 0 0 17,900 7,200 0 0 0 17,900 108,000 220,000 2017 0 0 31,600 0 0 0 0 0 0 0 0 0 31,600 18,900 0 0 31,600 0 0 0 0 0 0 0 0 31,600 12,600 0 0 0 31,600 189,000 380,000 2022 0 0 45,200 0 0 0 0 0 0 0 0 0 45,200 27,100 0 0 45,200 0 0 0 0 0 0 0 0 45,200 18,100 0 0 0 45,200 271,000 540,000

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Transport Infrastructure: Consolidated Manpower across Job Categories


Figure 17: Manpower Requirements For Transport Sector*
Millions

8 7 6

7.40 7.42

7.49

Manpower

5 4 3 2 1 0 Roads Railways
2012

1.86 0.89 1.01 0.72 Ports 1.08

2.27 0.38 0.54

0.18

0.04 0.06 0.10 Airports

Inland Waterways
2022

2017

Roads Manpower Requirements 7.4 Mn (2012) 7.5 Mn (2022) Critical Skills Mason, Machine Operator and Machine Driver

Railways Manpower Requirements 0.72 Mn (2012) 1.01 Mn (2022) Critical Skills Mason, Carpenter, Electrician and Machine Driver

Ports Manpower Requirements 1.1 Mn (2012) 2.3 Mn (2022) Critical Skills Mason, Carpenter, Bar Binder / Bender and Painter

Inland Waterways Manpower Requirements 0.2 Mn (2012) 0.54 Mn (2022) Critical Skills Supervisor / Foreman, Machine Operator, Technical / Engineer and Machine Driver

Airports Manpower Requirements 0.04 Mn (2012) 0.1 Mn (2022) Critical Skills Mason, Carpenter and Electrician

Total Manpower requirement for the sector is 11.4 Mn in 2022, an additional manpower of 2 Mn over requirements of 2012 The Manpower in Roads remains constant as skilled to unskilled ratio for 2012 is assumed to be 1:5 for construction and maintenance. Moving forward it has

been assumed that due to better technology adoption and productivity enhancement the ratio would fall to 1:3 Critical Skills for the sector are Machine Operator, Mason and Machine Driver

*Refer to Annexure 3 for manpower distribution across levels

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Transport Infrastructure: Consolidated Manpower


Table 15: Consolidated Manpower Estimations for Transport Infrastructure
Transport Infrastructure Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 4,000 6,000 116,000 151,000 168,000 21,000 10,000 19,000 44,000 1,000 7,000 222,000 126,000 83,000 12,000 54,000 21,000 240,000 18,000 20,000 28,000 52,000 4,000 25,000 40,000 132,000 81,000 5,000 67,000 46,000 7,637,000 9,460,000 2017 5,000 7,000 152,000 170,000 238,000 37,000 18,000 32,000 65,000 1,000 11,000 263,000 150,000 108,000 22,000 85,000 40,000 332,000 35,000 38,000 42,000 76,000 8,000 36,000 62,000 161,000 105,000 9,000 95,000 73,000 8,143,000 10,620,000 2022 7,000 8,000 185,000 189,000 303,000 50,000 24,000 43,000 85,000 1,000 14,000 304,000 174,000 132,000 30,000 116,000 44,000 414,000 44,000 46,000 51,000 98,000 10,000 43,000 80,000 184,000 126,000 11,000 124,000 97,000 8,366,000 11,403,000

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Category 2: Energy Infrastructure

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Category 2: Energy Infrastructure

Energy Infrastructure
Given the rapid pace of growth of the Indian Economy, the energy requirements of the country have grown exponentially. Energy generation, transmission and distribution must keep pace in terms of capacity. This has put immense pressure on the existing power infrastructure . Looking at the gravity of the situation, Indian government has taken initiatives at all ends of the power generation supply chain. Hence, initiatives have been taken for better availability of raw material (Oil and Gas), and converting this raw material into power units (electricity generation).

Further, a key part of the overall power reform strategy is to transmit and distribute power effectively and efficiently from regions of surplus to deficit areas and load centers. The government is pushing ahead aggressively with its plans to build a national power grid. This is expected to ease peak-time shortages and make better use of available generating capacity. It was also observed that more than 50% of Indias commercial energy demand is met through the country's significant coal reserves [20]. In order to protect countrys coal reserves and environmental concerns, the government is investing heavily in renewable energy utilization, especially wind energy.

Another concern for the power sector in India, are the high transmission and distribution losses. Indias electricity grid has the highest transmission and distribution losses in the world - 27% [18], which is attributed to technical losses (grids inefficiencies) and theft.

For Oil and Gas infrastructure, it was observed that most of the oil and gas pipeline infrastructure is concentrated in west and north. With south and east largely ignored, the government is now planning to develop oil and gas infrastructure for these regions. The pipeline development for the region is of importance as it would ensure ease of transportation of fuel necessary for the sustainability and development of the region.

As per Aon Hewitt analysis, the country would need to achieve 365,000 MW of power generation facilities by 2022. Further, to improve transmission infrastructure, it will have to increase the number of 400 KV substations by 55.8%, and 220 KV substations by 35.8%. In the case of gas pipelines, it is envisaged that the length of these pipelines will need to grow at a rate of 8%, and add 20,000 km by 2022.

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Electricity Generation, Transmission and Distribution

India is the world's 6th largest energy consumer which accounts for 3.4% of global energy consumption. In FY 2009-10 energy and utilities infrastructure accounted for 60% of total infrastructure industry value, amounting to INR 1.36 Trillion (US$ 28.8Bn) [1].

About 64.75% of the electricity consumed in India is generated by thermal power plants, 21.73% by hydroelectric power plants, 2.78% by nuclear power plants. and 10.73% by Renewable Energy Sources [21]. Further, more than 50% of India's commercial energy demand is met through the country's significant coal reserves. The country has also invested heavily in recent years in renewable energy utilization, especially wind energy.

Due to the fast-paced growth of India's economy, the country's energy demand has been growing on an average of 3.6% per annum over the past 30 years [20].

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Energy Infrastructure: Electricity Generation, Transmission and Distribution


Table 16: Projected Power Generation Infrastructure Construction and Capacity Maintenance
Generation Power Generation capacity to be added at 7.16% growth (MW) Power capacity maintenance at 5% (MW) 2012 12,690 9,500 2017 17,930 13,416 2022 25,300 19,000

Source: Central Electricity Authority; Aon Hewitt Analysis

In December 2010, the installed power generation capacity of India stood at 165,000 MW and per capita energy consumption stood at 612 kWh [22]. The total demand for electricity in India is expected to cross 950,000 MW by 2030. Looking at these estimates it is inevitable for the government to expand and add capacity in this sector [23]. Expanding electricity generating capacity will be the main driver of growth in the wider energy and utilities infrastructure sector. In order to realize economic growth potential and meet demand from an ever expanding demand base, a reliable electricity supply is crucial. This has led to ambitious targets for electricity generation, aiming at 470GW of nuclear power by 2050, 20GW of solar power by 2022 and 20GW of wind capacity by 2020. There is also a substantial build up of coal and gas fired power plants [1]. Briefly looking at the increase in power generation capacities across different five year plans, the cumulative financial year growth rate comes to be around 33%, going by the same standards the addition

capacity needed to be generated in the 13th five year plan would be about 365,000 MW [1]. The projections and overall growth rate for power

generation are based on historical analysis of Central Electricity Authority (CEA) and secondary sources. These projections and growth rate take into account the varying growths of different sources of power generation, namely, Thermal, Hydro, Nuclear and Renewable. Additionally, for calculating manpower requirements for power infrastructure construction, area norms have also been considered for each of these different sources of generation. As far as construction norms are concerned, thermal and solar power plants require similar infrastructure to be created. This aspect has been established and ratified based on Aon Hewitts primary research findings. Furthermore, for generation, it is assumed that 5% of the overall capacity would be under maintenance at any point of time. With respect to refurbishment of power plants, manpower has been discounted in certain steps, since maintenance of infrastructure would not require any major overhauls as the basic infrastructure would still exist.

Power Required by Generation type


Thousands 200 180 160 140 120

Figure 18: Power required by Generation Type

Megawatts

100 80 60 40 20 2011 2012 2013 2014 Thermal 2015 2016 Hydro 2017 2018 2019 2020 2021 2022

Nuclear

Renew able

Source: Central Electricity Authority, IBEF, Aon Hewitt Analysis

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Energy Infrastructure: Electricity Generation, Transmission and Distribution


Table 17: Current and Projected Power Transmission Infrastructure Construction and Maintenance
Transmission New Transmission lines and towers to be erected at 7% CAGR (Number of towers) Transmission line and tower maintenance @ 10% (Number of towers) 2012 45,623 65,315 2017 63,380 89,910 2022 66,550 123,176

Source: Central Electricity Authority; Aon Hewitt Analysis

Basis

these

projections,

the

total

manpower

and towers is based on historical analysis of Central Electricity Authority (CEA)(2011) . For the purpose of calculation of manpower requirements for construction of transmission infrastructure, one of the important industry norms pertains to the installation of transmission towers, which on an average would need to installed at every 400 meters. This norm has been identified based on inputs of SMEs and Industry Experts. Additionally, to account for contingencies associated with transmission equipment failure and damage, it is projected that transmission systems would have to be maintained at a rate of 10 percent ( table 17). Based on the norms, historical analysis of CEA and SME inputs, it has been projected that a total workforce of 0.16 Mn ( an addition of 60,000 over 2012) would be required for construction and Infrastructure in 2022. maintenance of Transmission

requirement for construction and maintenance of power generation infrastructure would be around 8 million in 2022 ( an addition of 4.25 million over 2012). Apart from power generation one of the other important concerns for India are the transmission and distribution losses, with an overall length of Indias power grid of about 6.5 Mn Further, as per the World Resources Institute (WRI), Indias electricity grid has the highest transmission and distribution losses in the world a 27% [18]. This is attributed to technical losses (grids inefficiencies) and theft. The other infrastructure aspect of transmission of power is the availability of step down or step up sub stations, as per our estimations the 400 kV substations would grow at cumulative growth rate of 55.8% every five years, while as 220 kV substations would grow at approximately 39.8%. The projections and growth rate for transmission lines km[1].

Figure 19: Transmission Lines required y-o-y


Transmission lines Y-o-Y Thousands 300 250

Circuit Kilometers

200 150 100 50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

400 kV (ckm)

220kV (ckm)

765 kV (ckm)

Source: Central Electricity Authority, IBEF, Aon Hewitt Analysis

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Energy Infrastructure: Electricity Generation, Transmission and Distribution


Table 18: Current and Projected Power Distribution Infrastructure Construction and Maintenance
Distribution New distribution 33kV stations to be added at 7.5% growth (Number of stations) Distribution stations to be Maintained at10% (Numbers) 2012 382,277 2017 693,423 2022 959,210

759,574

1,043,254

1,430,679

Source: Central Electricity Authority; Aon Hewitt Analysis

In the case of physical infrastructure to support distribution of power, it is assumed that all power would be distributed through 33 kV sub-stations (added at 7.5 percent growth rate). Therefore, by 2022 around 960,000, 33kV sub-stations would have to be installed to meet the distribution requirement The projections used for calculation of manpower requirements for power distribution are based on the rate of increase of generation. It has been assumed that the bigger distribution points can be broken down into smaller values, i.e. 750 kV, 400 kV and 220 kV. The total power that would be distributed takes into account transmission and other losses incurred while transmission. Maintenance of distribution systems is assumed to be 10 percent based on transmission line maintenance . This suggests that 10 percent of the total sub-stations would be under maintenance at any point of time. (table 18)

Based on these assumptions and projections, it has been calculated that the total workforce required for installation and maintenance of power distribution systems would be 88,000 in the year 2022. Over 2012, an additional manpower of 52,000 would be required to reach this figure.

As already highlighted, the manpower projections for construction of power generation plants, transmission line and distribution sub-stations have been arrived at using inputs from subject matter experts, and are as follows:

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Energy Infrastructure: Electricity Generation, Transmission and Distribution


Table 19: Manpower Estimations for Electricity Generation
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 7,000 3,000 136,000 291,000 49,000 88,000 162,000 67,000 201,000 48,000 25,000 120,000 83,000 76,000 176,000 116,000 72,000 120,000 17,000 24,000 17,000 8,000 40,000 45,000 33,000 22,000 133,000 4,000 59,000 7,000 4,000 1,436,000 3,690,000 Electricity Generation Manpower Estimations 2017 10,000 4,000 200,000 428,000 72,000 129,000 238,000 98,000 296,000 71,000 37,000 177,000 123,000 112,000 259,000 171,000 106,000 176,000 24,000 35,000 25,000 12,000 59,000 66,000 49,000 32,000 196,000 6,000 86,000 11,000 5,000 2,110,000 5,420,000 2022 14,000 6,000 293,000 625,000 104,000 189,000 348,000 143,000 434,000 104,000 54,000 259,000 180,000 164,000 379,000 250,000 155,000 258,000 36,000 51,000 36,000 17,000 86,000 97,000 72,000 47,000 287,000 9,000 126,000 16,000 8,000 3,083,000 7,930,000

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Energy Infrastructure: Electricity Generation, Transmission and Distribution


Table 20: Manpower Estimations for Electricity Transmission
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 2,200 16,800 500 81,100 101,000 Electricity Transmission Manpower Estimations 2017 3,400 25,500 800 106,500 136,000 2022 3,900 32,900 1,100 122,600 161,000

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Energy Infrastructure: Electricity Generation, Transmission and Distribution


Table 21: Manpower Estimations for Electricity Distribution
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrical Bar Binder/ Bender Blacksmith Welder Machine Operator Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrical Bar Binder/ Bender Blacksmith Welder Machine Operator Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 700 2,200 2,900 5,200 3,900 20,600 36,000 Electricity Distribution Manpower Estimations 2017 1,300 4,000 5,200 9,200 7,000 36,800 64,000 2022 1,800 5,500 7,200 12,800 9,700 50,900 88,000

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Oil & Gas Infrastructure

Over

the

period

2009-10

petroleum

product

consumption were 138.196 MMT, an increase of 3.60% over consumption of 133.4 MMT during 2008-09, according to the Ministry of Petroleum. Gas consumption on the other hand is set to rise from an estimated 63 BCM in 2010 to 110 BCM, with domestic supply up from around 45 BCM in 2010 to at least 70 BCM by 2014.[24] Over the period 20002009, oil and gas consumption grew at a 5% CAGR to reach 184 MMT. Petroleum products and natural gas together contributed 2.8% (US$ 30.8 Bn) to the countrys total gross domestic product (GDP (US$ 1089.3 Bn) in 200809. Domestic gas supplies are projected to increase from 163 Mn metric standard cubic meters per day (MMSCMD) in 200910 to 285.4 MMSCMD by 2012. Refining capacity is projected to increase from 184.4 Mn metric tons per annum (MMTPA) in 200910 to 241 MMTPA by 2012.
[24]

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Energy Infrastructure: Oil and Gas Infrastructure


Table 22: Projected Oil and Gas Pipeline Construction and Maintenance
Oil & Gas Pipelines New Pipelines to be laid (km) growth of 7.5% (Gas), 9% (Product) & 3% (Crude) Oil * gas pipelines maintained at 10% of total length (km) 2012 3221 3,393 2017 3,232 4,790 2022 4,739 6,834

Source: Aon Hewitt Analysis

Gas Pipeline
Gas consumption in India has outpaced that in Asia, at current domestic prices, gas is an economical fuel compared to its substitutes. The balance need to be produced by alternatives like coal and gas. Furthermore, fertilizer industry, which plays a pivotal role in determining the output of the agricultural sector, is also gas dependent for production.

Years. The next expansion phase of gas pipelines has been envisaged in the South and North-East to drive Indias growth.

Oil Pipeline
Oil pipelines can be classified into two, i.e. product and crude pipelines. According to the economic survey of India (2010) Product and crude pipelines in India for 2010 currently stands at 11159 and 7648 km

Natural gas transportation infrastructure in India is 10,800 km as in 2010, capable of carrying 270 MMSCD [25]. However, most of the gas pipeline infrastructure is concentrated in west and north while the south and east have largely been left untouched, hence regional imbalances in gas supply are there across the country. The challenge for an emerging market like India is to develop gas pipeline infrastructure in all parts of the country, including in remote areas, in tandem with increasing supplies and demand. Based on Aon Hewitts primary research, it was ascertained that gas pipeline is projected to grow at 8% till 2022, i.e. an addition of 16,000 km in the next 10

respectively [24]. Product pipelines have capacities of 65.9 MMTPA as against the demand of 138.2 MMTPA for 2010 [25]. The deficit between the demand and the pipeline capacities provides the potential for development of pipelines in the near future. Currently the deficit in transportation is being catered to by the railways, which is an inefficient and less cost effective alternative. However, for crude pipelines, the projected growth in the near future is much slower ( table 22), as more refineries are coming up in costal region, based on Aon Hewitts primary research. Hence, demand for laying crude oil pipeline for transportation from source to refineries would be much lower.

Figure 20: Additional Oil and Gas Pipelines tocons be tructed constructed Additional Pipeline to be
3000

2500

2000

Kilometers

1500

1000

500

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Gas pipeline

P roduct P ipeline

Crude P ipeline

44

Source: Central Electricity Authority, IBEF, Aon Hewitt Analysis

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Energy Infrastructure: Oil and Gas Infrastructure


Table 23: Projected Oil and Gas Storage Construction and Maintenance
Oil & Gas Storage New Oil & Gas Storage at 5.5% Oil and 5% gas consumption growth (Tons) Oil & Gas Storage maintained at 10% (Tons) 2012 3,150,000 4,446,000 2017 4,060,000 5,734,000 2022 5,250,000 7,400,000

Source: Aon Hewitt Analysis

Oil & Gas Storage


Furthermore, for Oil and Gas storage capacities, it was established through primary research that 60 days of supply is always maintained by companies. Hence, growth in consumption directly impacts the increase in storage capacities.

growth rates have been ascertained on the basis of primary research ( inputs of SMEs and Industry Experts). Additionally, to account for contingencies associated with oil and gas infrastructure ( both pipelines and storage facilities) damage, it is projected that infrastructure would have to be maintained at a rate of 10 percent of those laid out ( table 22 and 23). Based on primary research and Aon Hewitt Analysis, it has been projected that a total workforce of 0.43 Mn ( an addition of 0.18 Mn over 2012) would be required for construction and maintenance of Oil and Gas Pipeline Infrastructure in 2022. Furthermore, the construction and maintenance of Storage Infrastructure would require a total workforce of 28,000 in the year 2022 an additional manpower of 11,000 over 2012..

With 5.5% growth envisaged for oil and 5% for gas consumption, 23 MMT of oil storage and 26 MMT of Gas storage would be required by FY 2022 ( table 23). With an average tank having a capacity of 0,07 MMT, 320 storage tanks for oil storage and 370 gas storage would be required to be constructed by FY 2022 to cater to the growing demand of the Indian economy. For calculation of manpower requirements for oil and gas infrastructure construction, the projections and

Required Oil and Gas Storage


3.00 2.50 2.00
Million Tons

Figure 21: Required Oil and Gas Storage

1.50 1.00 0.50 0.00 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Required Oil Storage

Required Gas Stroage

Source: Aon Hewitt Analysis

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Energy Infrastructure: Oil and Gas Infrastructure


Table 24: Projected Petrol Station Construction and Maintenance
Petrol Stations New Petrol Station construction at 7% (Number) Petrol Pumps to be maintained at 10% (Number) 2012 2,800 4,280 2017 3,930 6,005 2022 5,510 8,420

Source: Town and Country Planning Organization ; Aon Hewitt Analysis

Apart from pipelines and storage, one of the other important elements of Oil and Gas Industry are the Fuel (Petrol) Stations. Petrol Stations , in India, are expected to grow at a rate of 7 percent. At this rate, around 5500 Petrol Stations would need to be constructed in 2022. These projections and growth rates are based on the current planned petrol stations addition on the existing base, and statistics from Ministry of Petroleum & Natural Gas (2011). For calculation of manpower requirements for petrol stations, the norms have been established based on secondary sources (Indias Town and Country Planning organization ) . Based on secondary research findings, one petrol station would be required for a population of 15,000 people (urban / rural) . Quite in line with the construction and maintenance of Oil and Gas Infrastructure, the maintenance of petrol station is also assumed to be 10 percent of the total stations that exist. Based on the derived norms and Aon Hewitt Analysis, it has been projected that a total workforce of 86,000 ( an addition of 42,000 over 2012) would be required for construction and maintenance of petrol stations in 2022. During the analysis, it was specifically found that Radiographers is a key job trade used in the Oil and Gas industry only. They are responsible for detecting cracks in the pipeline and storage tanks using radiographer techniques.

product demand over recent years. As highlighted earlier, in order to meet the increasing demand of energy, specifically of petroleum products, a strong need has been felt to increase the refining capacity of the country. The refinery industry for the past six years has registered a CAGR of 8%. Hence, it has been assumed that the same growth rate would be sustained going forward and projections have been made accordingly. As of June, 2011 there are a total of 21 refineries in the country comprising 17 (seventeen) in the Public Sector, 3 (three) in the Private Sector and 1 (one) as a joint venture of BPCL & Oman Oil Company. The country is not only self sufficient in refining capacity for its domestic consumption but also exports petroleum products substantially. The total refining capacity in the country as in 2011 is 193.386 MMTPA [54]. Based on the projections, the refining throughput for 2022 would be 516 MMTPA with an average capacity of 9.7 MMTPA per refinery. The construction and maintenance aspect takes into account all the infrastructural requirements associated with refineries. Additionally, to account for contingencies associated with infrastructural damage, it is projected that refineries would have to be maintained at a rate of 10 percent of those set up. Based on the projections and inputs from SMEs and Industry experts, the total manpower required for construction and maintenance would be 0.97 Mn in 2022 ( an addition requirement of 0.53 Mn over 2012 ). Required manpower to construct the infrastructure based on SME inputs is as follows.

Refineries
India has experienced significant growth in petroleum

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Energy Infrastructure: Oil and Gas Infrastructure


Table 25: Manpower Estimations for Oil and Gas Pipeline
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 36,000 2,000 44,000 10,000 4,000 22,000 133,000 251,000 Oil & Gas Pipeline Manpower Estimations 2017 41,000 2,000 54,000 12,000 5,000 25,000 162,000 301,000 2022 60,000 3,000 78,000 17,000 7,000 36,000 233,000 434,000

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Energy Infrastructure: Oil and Gas Infrastructure


Table 26: Manpower Estimations for Oil and Gas Storage
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 600 600 1,800 1,200 1,800 2,900 1,800 600 5,900 17,200 Oil & Gas Storage Manpower Estimations 2017 700 700 2,300 1,500 2,300 3,700 2,300 800 7,600 21,900 2022 900 900 2,900 2,000 2,900 4,800 2,900 1,000 9,800 28,100

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Energy Infrastructure: Oil & Gas Infrastructure


Table 27: Manpower Estimations for Petrol Station
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 100 100 1,800 5,000 2,600 1,300 2,100 1,400 100 2,800 2,300 800 2,400 1,700 1,000 1,500 300 400 200 500 400 1,000 400 300 2,100 100 50 21,000 53,800 Petrol Station Manpower Estimations 2017 200 100 2,500 7,000 3,600 1,800 3,000 2,000 200 4,000 3,200 1,100 3,400 2,400 1,400 2,000 500 500 300 700 600 1,400 600 400 3,000 200 70 29,500 75,700 2022 300 100 3,500 9,800 5,000 2,500 4,200 2,800 300 5,600 4,400 1,500 4,800 3,300 1,900 2,900 600 800 400 900 800 2,000 800 500 4,200 300 100 41,300 105,600

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Energy Infrastructure: Oil and Gas Infrastructure


Table 28: Manpower Estimations for Refineries
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 134 54 68999 4634 1588 1264 2150 1335 4182 62237 260 15425 1497 6183 2438 1639 987 1471 332 393 202 257 460 731 403 262 42147 31 435 54 26 206529 430753 Refineries Manpower Estimations 2017 202 81 103494 6950 2382 1896 3225 2002 6272 93352 390 23137 2246 9274 3657 2458 1481 2206 499 589 302 385 690 1096 605 393 63219 47 653 81 40 309780 645103 2022 302 121 155235 10425 3574 2844 4837 3003 9408 140022 585 34704 3369 13911 5486 3687 2222 3310 748 884 453 578 1036 1644 907 589 94824 70 979 121 59 464652 966612

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Figure 22 : Manpower Requirements For Energy Sector*
1.2 0.97

Manpower (Millions)

1.0 0.8 0.65 0.6 0.43 0.4 0.2 0.0 Refineries Oil & Gas Pipelines
2012

0.43 0.25 0.30 0.16 0.10 0.14 0.04 0.06 0.09 0.04 0.09 0.06 0.02 0.02 0.03

Transmission

Distribution
2017

Petrol Stations
2022

Storage

9.0 8.0

7.94

Manpower (Millions)

7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Generation 3.69 5.43

Refineries Manpower Requirements 0.43 Mn (2012) 0.97 Mn (2022) Critical Skills Supervisor/Foreman, Machine Operator and Technical / Engineer

Oil & Gas Pipelines Manpower Requirements 0.26 Mn (2012) 0.43 Mn (2022) Critical Skills Supervisor/ Foreman, Machine Operator and Technical / Engineer

Oil & Gas Storage Manpower Requirements 0.02 Mn (2012) 0.03 Mn (2022) Critical Skills Welder, Machine Operator, Technical / Engineer and Grinder

Transmission Manpower Requirements 0.1 Mn (2012) 0.16 Mn (2022) Critical Skills Mason and Erection Gang

Distribution Manpower Requirements 0.04 Mn (2012) 0.09 Mn (2022) Critical Skills Mason, Electrician, Supervisor / Foreman and Technical / Engineer

Generation Manpower Requirements 3.7 Mn (2012) 7.9 Mn (2022) Critical Skills Mason, Electrician, Welder and Painter

Petrol Station Manpower Requirements 0.04 Mn (2012) 0.09 Mn (2022) Critical Skills Mason, Carpenter, Painter and Electrician The overall critical skills for the sector are Supervisor / Foreman, Electrician, Welder, Technical / Engineer and Mason . The unique skill to the sector is the Radiographer uses in Oil & Gas sector and erection gang in transmission lines.

Total Manpower requirement for the sector is 9.7 Mn in 2022, an additional manpower of 5.1 Mn over requirements of 2012 Electricity generation commands manpower requirements. majority of the

*Refer to Annexure 3 for manpower distribution across levels

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Energy Infrastructure: Consolidated Manpower


Table 29: Manpower Estimations for Energy construction and maintenance
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Erection Gang Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 8,000 3,000 245,000 307,000 53,000 90,000 171,000 71,000 209,000 156,000 25,000 148,000 87,000 89,000 17,000 181,000 119,000 74,000 122,000 17,000 24,000 17,000 9,000 41,000 47,000 34,000 22,000 223,000 10,000 1,000 59,000 7,000 4,000 1,884,000 4,570,000 Energy Manpower Estimations 2017 12,000 4,000 351,000 451,000 78,000 133,000 253,000 103,000 307,000 220,000 37,000 215,000 128,000 129,000 26,000 266,000 175,000 109,000 180,000 25,000 36,000 25,000 13,000 60,000 69,000 50,000 33,000 328,000 16,000 1,000 87,000 11,000 5,000 2,725,000 6,660,000 2022 17,000 6,000 517,000 0 657,000 113,000 194,000 370,000 150,000 450,000 324,000 55,000 316,000 188,000 189,000 33,000 389,000 257,000 159,000 264,000 37,000 52,000 37,000 19,000 88,000 101,000 74,000 48,000 479,000 22,000 1,000 127,000 16,000 8,000 3,955,000 9,710,000

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Category 3: Communication Infrastructure

Telecom Infrastructure

India is the second largest telecom market in the world, and is also among the fastest growing mobile market globally. The total number of telephone connections (both wireless and wired) has increased on a CAGR of 26%, going from 142 Mn (in 2006) to 562 Mn (in 2009)
[26].

The increasing growth rate in number of connections is mainly attributed to the high growth in mobile phone connections which was further enhanced by market competition and lower tariffs. Further, with the advent of new technologies such as 3G and BWA (broadband wireless access) telecom is set to be a key driver for growing Indian GDP.

Low handset costs, commodization of services and low tariffs in mobile telephones have triggered a negative growth in fixed line connections. Therefore, the number of fixed line connections in India has been decreasing at a rate of about 2% [26].

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Table 30: Projected Broadband Infrastructure Construction and Capacity Maintenance
Broadband Broadband Connections (in Millions) Optic Fiber Cable Needed ( in Kilometers) 2012 29 97,520 2017 142 47,3945 2022 354 1,179,326

Source: Department of Telecom; Aon Hewitt Analysis

Table 31: Projected Telecom tower Infrastructure Construction and Capacity Maintenance
Tower Infrastructure 2012 2017 2022

Wireless Subscribers ( Mobile and Wireless)

867,770,000

1,055,677,000

1,154,015,000

Number of Towers Needed

406,885

748,774

964,486

Source: Department of Telecom; Aon Hewitt Analysis

While looking at infrastructure requirements of fixed line telephony in India, it was observed that telecom operators provide fixed lines more to enterprise customers bundled with IP leased lines and broadband services. These leased lines and broadband services need to be supported by a fiber optic backbone. Further, the other major attribute enhancing fixed line telephony is the increase in rural tele density. The Indian broadband consumer base has been increasing at a rate of 66% and is currently pegged at 19.50 Mn connections [26]. It is estimated that for the next 5 years (till FY 2015) these connections will increase at a rate of 50%, and will continue to grow at 20% thereafter till FY 2022 [26]. As per our estimates around 500,000 km of fiber optic is needed to support 160 Mn broadband subscribers . Assuming the same norms, it is estimated that India will have to lay approximately 1.2 Mn km of fiber optic cables to support its forecasted 354 Mn subscribers ( by 2022). Estimating maintenance manpower required for

While estimating the telecom tower infrastructure in India, it was observed that these towers support GSM, CDMA and 3g services in the telecom space. With network sharing and outsourcing of tower operations and construction, it was found that network infrastructure in urban areas has almost saturated. Therefore, the entire focus of building and installing telecom towers would be in the rural space. It was estimated that with growing wireless

connections, the number of towers required to support GSM, 3G and wimax services, would grow from 15% (till 2013), and then continue growing at about 4% (till 2017). The number of towers required are as shown in table ----. Further, looking at the manpower requirement for maintenance of tower infrastructure, it was assumed that a certain number of personnel will be posted by tower companies to maintain civil infrastructure. This deployed staff, per tower was accounted and estimated for. Based on SME inputs, the manpower requirements for the Telecom sector are as follows:

broadband infrastructure, it is assumed that maintenance functions mainly involve, joining and refurbishing of wire joints. Therefore, for maintenance, only certain job trades will be required in smaller numbers.

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Figure 23: Telecom Connections
Telecom Connections

800.00 700.00

1400000 1200000 1000000 800000

Number of Connections

600.00 500.00 400.00

600000 300.00 200.00 100.00 0.00 20072008 2009 20102011 2012 20132014 20152016 2017 20182019 2020 20212022 Wired (Millions) Telephone (Millions)
Source: Aon Hewitt Analysis

400000 200000 0

Optic fibre Cable ( Kms)

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Kilometers

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Communication Infrastructure: Consolidated


Table 32 : Manpower Estimations for Broadband
Broadband Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrical Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 100,400 10,000 2,260 536,000 649,000 2017 482,700 48,100 48,200 2,500,000 3,066,000 2022 1,201,200 119,800 119,800 6,200,000 7,630,000

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Communication Infrastructure: Telecom Infrastructure


Table 33: Manpower Estimations for Towers
Tower Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 1,000 64,000 0 65,000 19,000 3,000 9,000 14,000 35,000 3,000 3,000 59,000 6,000 3,000 7,000 15,000 19,000 3,000 3,000 32,000 715,000 1,077,000 2017 1,000 82,000 0 83,000 25,000 4,000 11,000 17,000 45,000 4,000 4,000 76,000 8,000 4,000 9,000 19,000 25,000 4,000 4,000 41,000 917,000 1,381,000 2022 400 44,500 100 45,300 13,600 2,100 6,200 9,500 24,700 2,100 2,100 41,200 4,100 2,100 4,900 10,300 13,600 2,100 2,100 22,300 499,600 752,700

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Figure 24: Manpower Requirements For Communication sector*
Millions

8 7 6

7.63

Manpower

5 4 3 2 1 0 Tower Infrastructure
2012 2017

3.07

1.08

1.38

0.75

0.65 Broadband
2022

Towers Infrastructure Manpower Requirements 1.07 Mn (2012) 0.75 Mn (2022) Critical Skills Mason, Supervisors and Blacksmith (Mainly for Erection of towers)

Broadband Manpower Requirements 0.64 Mn (2012) 7.6 Mn (2022) Critical Skills Supervisor, Machine Operator and Electrician (Wire Jointers)

Total Manpower requirement for the sector is 8.38 Mn, with the broadband sector governing the majority of the requirements. In the case of tower infrastructure, Blacksmith is a key skill that dominates the construction activity, as they are deeply involved in the tower erection activity.

For broadband infrastructure, a new trade observed was that of wire jointers, who are responsible for making the end connections once the wire is laid. Finally, taking a broader view of the telecom sector, it was found that there is a steep increase in manpower number ranging from 1.7 Mn (in 2012) to 8.38 Mn (in 2022).

*Refer to Annexure 3 for manpower distribution across levels

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Table 34: Manpower Estimations for Communication Infrastructure
Communication Infrastructure Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 600 164,100 100 64,900 19,500 2,900 18,862 13,600 35,400 5,160 2,900 59,000 5,900 2,900 7,100 14,700 19,500 2,900 2,900 31,800 1,250,593 1,725,315 2017 800 564,400 200 83,200 25,000 3,800 59,447 17,400 45,400 51,947 3,800 75,600 7,600 3,800 9,100 18,900 25,000 3,800 3,800 40,800 3,403,782 4,447,576 2022 400 1,245,700 100 45,300 13,600 2,100 126,005 9,500 24,700 121,905 2,100 41,200 4,100 2,100 4,900 10,300 13,600 2,100 2,100 22,300 6,688,255 8,382,365

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Category 4: Water and Sanitation Infrastructure

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Category 4: Water and Sanitation Infrastructure

Water and Sanitation Infrastructure


The state of urban service delivery in Indian cities and towns is far poorer than is desirable for Indias current income level. Indias annual capital spending on urban infrastructure is USD 17 per capita, which is only 14 % of China and less than 6 % of New York. India needs to spend the equivalent of USD 134 per capita per year to improve the quality of urban life [27].

A study by Ministry of Urban Development, Government of India, found that 23 Mn children below the age of 14 in urban India are at risk of diseases borne from poor sanitation [28]. The challenge of sanitation in Indian cities is acute. With poor sewerage networks, a large number of the urban poor still depend on public toilets. Many public toilets have no water supply while the outlets of many others with water supply are not connected to the citys sewerage system. The problem of sanitation is much worse in urban areas than in rural due to increasing congestion and density in cities.

The same study found that 8 Mn children in urban areas at risk from poor water supply [28]. Inadequate coverage, intermittent supplies, low pressure, and poor quality are some of the most prominent features of water supply in the cities of India. Even when water supply is adequate, poor maintenance and inadequate replacement lead to technical losses in the distribution network.

Furthermore, to add to the chaotic management of cities, the management and disposal of solid waste generated in Indian cities leaves a great deal to be desired. Although the generation of solid waste is at much lower rates than in most countries, neither households nor municipalities in India practices segregation of biodegradable waste. Public awareness on the benefits of segregation is low too. The Energy and Resources Institute (TERI) has estimated that by 2047, waste generation in Indian cities will increase five-fold to touch 260 Mn ton per year [28]. A study by the World Bank (2006) puts Indias annual generation of municipal solid waste in the range of 35 to 45 Mn ton, amounting to about 100,000 to 120,000 metric ton every day [29].

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Water Supply Pipelines

In India, public utilities use water pipelines as the primary method of water distribution from water treatment plants. The quality of water distribution services can be determined by the length of pipelines, level of coverage as well as the water carrying capacity of the pipelines. Even though India is dotted with rivers and has adequate rainfall, most of the cities in India do not provide adequate water to the populace as per the norms specified by either JNNURM, the World Bank or the Ministry of Urban Development, Government of India. The latest norms devised by the Manual on Water Supply and Treatment by Central Public Health and Environmental Engineering Organization (CPHEEO), Ministry of Urban Development and Poverty Alleviation in 1999 are provided in the table on the next page. These norms are now outdated due to the high growth rates experienced by major cities in India, and keeping in mind the future growth rate expected in these cities.

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Water and Sanitation Infrastructure: Water Supply Pipelines


Table 35: Norms specified by Ministry of Urban Development for Water Supply to cities (1999)
Service Norms (lpcd) Towns with Piped Water Supply but without Sewerage System Cities with Piped Water Supply and Existing or Planned Sewerage System Metropolitan and Mega Cities with Piped Water Supply and Sewerage 70 135 150

Source: High Powered Expert Committee (HPEC) for Estimating the Investment Requirements for Urban Infrastructure Services

Table 36: Maintenance and Construction of Water Pipeline - Projections


Water Pipeline New water pipelines to be laid @ 6% growth (km) Length of pipeline to be under maintenance @ 5% of total (km) 2012 8,691 7,677 2017 11,630 10,274 2022 15,564 13,750

Source: Aon Hewitt Analysis & JNNURM City Reports

Currently, the water supply is not up to the mark, with small periods of water availability coupled with low pressure at the supply end and poor quality. Another shortcoming is the fact that supply coverage does not cover the entire populace, with most cities unable to provide public water distribution utilities to a significant percentage of the population. In order to draw projections, it has been assumed that 137,000 km of pipelines existed in 2010, based on the growth rates envisaged by JNNURM in its reports on infrastructure state of various cities in India. A sample of 5 cities was drawn for projections out of 47 cities in India with a population greater than 1 Mn in 2010. For these five cities, we have used updated norms specified in JNNURM city reports rather than the norms showcased above. The Ministry of Urban Development, Government of India specifies guidelines for the optimum water supply to be administered to cities of different size in order to meet requirements of the populace in these cities.

Based on these guidelines, Aon Hewitt projected that the length of pipelines should grow at 6% y-o-y till 2022 in order to meet water supply requirements. As for maintenance, it is assumed 5% of the total pipeline length would be under maintenance in any year, this is to account for contingencies associated with water pipeline infrastructure damage. The required manpower in 2022 for the sub-sector is 6.4 Mn including maintenance (2.8 Mn additional manpower required over 2012). The total pipeline required each year is shown in the following graph. Further, based on the norms specified, inputs from SME and the resulting requirements each year, we have projected manpower requirements for water pipeline construction till 2022. These manpower numbers have been detailed skill wise in the table on the following page.

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Figure 25: Water Pipeline Requirement y-o-y and Maintenance (km)


Thousands

300 250
Kilometers

Thousands

16 14 12

200 150 100 50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

10 8 6 4 2 0

Total Pipeline Length

Pipeline to be Maintained

Source: Aon Hewitt Analysis

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Water and Sanitation Infrastructure: Water Supply Pipelines


Table 37: Manpower Estimations for Water Supply Pipelines
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 395,500 34,800 21,800 21,800 418,700 68,200 197,800 2,423,600 3,582,000 Water Supply Pipeline Manpower Estimations 2017 529,300 46,500 29,200 29,200 560,300 91,200 264,700 3,243,300 4,794,000 2022 708,300 62,300 39,100 39,100 749,800 122,100 354,200 4,340,300 6,415,000

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Water Treatment Plants

With 2.3% of worlds land area and 17.5% of world population, as stated earlier, India commands only 4% of the worlds water resources [28]. For 2010, the water demand was estimated to be 710 BCM (Billion cubic meters), and is projected to increase by 1.2% annually
[28].

the

The main drivers behind the projected increase are increase in domestic and industrial water

consumption. Water in India is very unevenly distributed throughout the country, based on this fact per capita water supply also varies widely ranging from 37 lpcd (liters per capita daily) to 298 lpcd for limited duration [28]. The duration of water supply in Indian cities varies from 1-6 hours in a day. Moreover, only 64% of the urban population is covered by individual connections and standposts. In addition to the quantity of water supplied, it has been estimated that 20-40% of water is lost through leakages and wastage in Indian cities [28]. Furthermore tapping of

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Table 38: Maintenance and Construction of Water Treatment Plant - Projections
Water Treatment Plant New plant construction - Area to constructed at growth rate of 6%(sq ft) be 2012 20,607,470 3,512,354 2017 30,773,503 5,129,171 2022 49,080,133 7,937,152

Maintenance of total area under Water Treatment Plant at 10% (sq ft)

Source: Aon Hewitt Analysis & JNNURM City Reports

additional resources has been hampered by the fact that increased developmental activities such as urbanization and industrialization have lead to generation of more and more wastewater which has contaminated the available sources of fresh water. Hence, to ensure availability of consumable water for the masses, water needs to be treated. Water treatment plant serve as a critical bridge in ensuring that water from all the sources is worthy of being used by the countrys population. To draw projection of water treatment plants required in the major cities in the country, Aon Hewitt worked with a sample of 5 cities and extrapolating it for 47 cities with population greater than 1 Mn. Based on the analysis of the 47 cities, the requirement for 2012 is estimated to be 2,000 MLD of treated water, which would more than double by 2022 to 4,100 MLD. Furthermore, the Working Group of the National Commission for integrated Water Resources Development Plan, has suggested the norms for water supply as 220 lpcd for urban areas and 150 lpcd for

rural areas. Based on the analysis, it is assumed that 1800 MLD of water is treated in 2010 and growth rate of 6% is required to meet the demand of the increasing population. For the manpower calculations for maintenance of Water treatment plant infrastructure, it has been assumed that the area to be under maintenance would be 10% of the total built up area. Not all steps involved in new Water treatment plant construction are considered. Certain steps have been omitted and discounting of manpower made in certain steps, as the basic infrastructure would exist and only minor repair / maintenance would be required The manpower requirements have been projected keeping in mind the growing needs of the country leading to increased construction of water treatment plants. Manpower requirement in 2022 is 0.43 Mn (0.24 Mn additional manpower required over 2012). These have been based on input from SMEs and are as follows:

Figure 26: Amount of Water to be Treated y-o-y to Meet Requirements


4500

Water to be treated y-o-y

Total water to be treated (MLD)

4000 3500 3000 2500 2000 1500 1000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Aon Hewitt Analysis

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Table 39: Manpower Estimations for Water Treatment Plants
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 200 100 2,700 6,500 1,500 2,000 3,200 2,000 2,600 700 600 2,400 2,400 1,400 3,600 2,500 1,500 2,200 500 600 300 1,500 600 400 2,800 100 1,000 100 100 142,700 188,800 Water Treatment Plant Manpower Estimations 2017 300 100 4,100 9,700 2,300 3,000 4,700 2,900 3,900 1,000 900 3,600 3,600 2,000 5,400 3,800 2,200 3,200 700 900 400 2,300 900 600 4,100 100 1,600 200 100 202,400 271,000 2022 500 200 7,200 17,000 4,000 5,200 8,300 5,100 6,900 1,800 1,600 6,300 6,400 3,600 9,400 6,600 3,800 5,700 1,300 1,500 800 4,000 1,600 1,000 7,200 200 2,700 300 200 305,700 426,100

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Sewage Pipelines

Sewage treatment is dependant on sewage collection as well as transportation to the treatment plants. However, in India, a significant proportion of the sewage (>50%) is not collected or left untreated, and flows into rivers and other water bodies [28].

A major component of the sewage treatment and disposal are sewage pipelines. These pipelines are used to transfer sewage from homes / industries / commercial establishments to the sewage treatment and disposal systems. Ideally, these pipelines should begin at the sewage creation spots and through multiple transfers, end at sewage treatment plants. However, most of these flow in to open outlets, known as nallahs that eventually empty into water bodies. These nallahs are found in most of the cities in India, and cause many water-borne diseases found to affect the poor that are found living near these.

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Table 40: Maintenance and Construction of Sewage Pipeline - Projections
Sewage Pipeline New water pipelines to be laid @ 7.5% growth (km) Length of pipeline to be under maintenance @ 7% of total (km) 2012 5,932 3,906 2017 8,416 5,826 2022 12,125 8,818

Source: Aon Hewitt Analysis & JNNURM City Reports

The Ministry of Urban Development states that sewer facilities should cover 100% of the population as well as commercial establishments and other sewage generating places. This is required in order to ensure that there is no emptying of sewage into the neighborhood or into the nearby water bodies. Based on these guidelines, Aon Hewitt projected that the length of pipelines should grow at 7.3% y-o-y till 2022 in order to meet sewage pipeline requirements. As for maintenance, it is assumed 10% of the total pipeline length would be under maintenance in any year, this is to account for contingencies associated with sewage pipeline infrastructure damage. In order to achieve these targets, the required pipeline length to be constructed and maintained in the near future can be seen from the graph below:

In order to draw projections, we assumed that 33,400 km of sewage pipelines existed in 47 cities with 1 Mn plus population in 2010, based on the JNNURM reports available for various cities in India. A sample of 5 cities was drawn for projections out of 47 cities in India with a population greater than 1 Mn in 2010. Based on the norms specified, inputs from SME and the resulting requirements each year, we have projected manpower requirements for sewage pipeline construction till 2022 The required manpower in 2022 for the sub-sector is 4.7 Mn including maintenance (2.5 Mn additional manpower required over 2012). These manpower numbers have been detailed skill wise in the table on the following page.

Figure 27: Sewage Pipeline Requirement at end of each year (km)

Thousands 100 80

Kilometers

60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Total Pipeline Length

Pipeline to be Maintained

Source: Aon Hewitt Analysis

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Water and Sanitation Infrastructure: Sewage Pipelines


Table 41: Manpower Estimations for Sewage Pipelines
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 241,500 23,700 7,900 5,200 13,100 257,300 44,800 120,800 1,488,900 2,203,000 Sewage Pipeline Manpower Estimations 2017 348,700 33,700 11,200 7,800 19,000 371,200 63,900 174,400 2,147,500 3,177,000 2022 511,500 48,500 16,200 11,800 27,900 543,800 92,600 255,700 3,146,600 4,655,000

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Storm Water Drainage

Storm water drainage system refers to the natural or artificial removal of surface and sub-surface water from an area. Many agricultural soils need drainage to improve production or to manage water supplies. As per the JNNURM estimates, the budget to improve the condition of storm water drainage systems in India, is to the tune of US$ 42.45 Bn [28]. Improvement of water drainage system would include widening of drains and structures to prevent waste dumping, laying of pipeline with pipe support bridges/culverts, catch pits, manholes, outfall structures with gates, and covers for the drain. A number of problems/issues exist with the current drainage system also including unfinished or uneven lining, uncovered drains, blocked and choked drains. This condition is worst for rural areas where most of these drains, are either absent or inadequate. The respective municipal bodies of various state governments fail to maintain and clean these drains, making the existing infrastructure ineffective.

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Table 42: Maintenance and Construction of Storm Water Drainage - Projections
Storm Water Drainage New Storm Water to be constructed at 4% growth (km) Length of Storm Water drains to be under maintenance at 10% of total required (km) 2012 4,935 2017 6,044 2022 7,305

4,491

11,217

28,923

Source: Aon Hewitt Analysis & JNNURM City Reports

Further,

storm

water

drainage

systems

are

However, the construction would still be inadequate for catering to Indias infrastructural requirements. Therefore, it has been proposed that the maintenance aspect involve construction of new storm water drains. This aspect would aid in filling the vast gap that currently exists.

fundamentally not suitable or designed for carrying sewage or industrial waste, which form a major portion of the drainage material, especially in cities like Mumbai and Delhi. According to the Ministry of Urban Development, less than 20 percent of the Indian road network is covered by storm water drains (in 2010). Further, as per the JNNURM services standards, the country aims to achieve 100% drain network for all roads across all cities in India, by 2031. As per Aon Hewitt analysis, 390,000 km of storm water drains are required to be constructed in India, by 2022 to meet the requirements of 47 cities taken for analysis. For ensuring optimum storm water drain coverage, it is assumed that new road construction would aid in addition of storm water drains. Hence, to moderate the storm water drainage systems growth, it is proposed that storm water drainage be constructed at the same rate as that of new roads (4%).

For 2010, it s assumed that 30,400 km of storm water drains exist, this forms the basis of our projections. Moving forward, it is assumed that new construction would grow at 4% and maintenance at 10%. The required manpower based on the above stated assumption for 2022 is 3.9 Mn (2.7 Mn additional manpower required over 2012). Further, based on the norms specified, inputs from SME and the resulting requirements each year, we have projected manpower requirements for Storm Water Drain construction till 2022. These manpower numbers have been detailed skill wise in the table on the following page.

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Figure 28: Storm Water Drainage Construction


Hundreds 350 300

Kilometers

250 200 150 100 50 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Construction during maintenance

Proposed construction as per road construction


Source: Aon Hewitt Analysis

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Table 43: Manpower Estimations for Storm Water Drainage
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 88,600 6,600 62,800 107,700 6,600 61,000 824,000 1,157,000 Storm Water Drainage Manpower Estimations 2017 153,800 8,000 114,800 184,700 8,000 93,400 1,409,100 1,972,000 2022 309,300 9,700 241,500 367,300 9,700 164,600 2,793,900 3,896,000

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Solid Waste Management

Solid waste management in India leaves a great deal to be desired. Waste collection coverage ranges from 70% to 90% in major metropolitan cities and less than 50% in smaller cities [28]. Of the solid waste collected less than 30% is segregated, scientific disposal / treatment of waste is used minimally [28]. Furthermore, the current disposal practices are highly unsatisfactory, i.e. open dumping at sites and burning. The practice has led to contamination of groundwater and surface water through leachate and pollution of air through unregulated burning of waste. It is estimated that the annual increase in overall quantity of solid waste in Indias cities will be at a rate of 5% per annum. With large part of Indias waste being biodegradable (60%), opportunities for composting and utilizing solid waste for more beneficial use is immense [28].

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Table 44: Maintenance and Construction of Solid Waste Management - Projections
Solid Waste Management New plant construction - Area to be constructed at 20% growth (sq ft) Maintenance of total area under solid waste management at 10% (sq ft) 2012 94,873,626 53,798,524 2017 103,253,419 102,839,236 2022 113,637,426 156,456,181

Source: Aon Hewitt Analysis & JNNURM City Reports

Another avenue that provides immense opportunity is sewage / waste water treatment, with only 46% of urban population having access to sanitation services; there exists a vast gap in municipal services [28]. Moreover, only 12% of rural residents have similar access [28]. The higher percentages for urban sanitation have largely been due to private initiatives at the household level and due to high concentrations of household toilets in the larger urban metropolitan cities. However, the situation in urban areas is of concern as congestion in the cities / towns can make containment of any contagious disease translate into an outbreak or an epidemic as result of poor sanitation. The chaotic mess in urban India is further aggravated due to lack of sewage systems and wastewater management plants sufficient to meet the needs of the growing urban population. In many cities the sewer systems are in very bad condition and need extensive maintenance or replacement. The resultant being, only 21 % of the waste generated is treated [28]. With a sample of 5 cities and extrapolating it for 47 cities with population greater than 1 Mn, the solid waste generated in India is estimated to be 88,000 tons per day for the year 2010. As for sewage generated, for the same sample, it stands at 32,000 MLD for 2010. With dwindling resources, and increasing population, recycling of waste seems to be the only viable option to ensure continued sustenance of urban lifestyle and economic growth. To put things in perspective, 4861

out of 5161 cities / towns do not have even a partial sewage network [28]. Hence, concentration on development of Solid waste management system and Sewage / Waste Water treatment plants should be of prime essence. With increasing sewage and solid waste, requirement of treatment plants is of prime essence. The projected growth rate for plant construction is assumed to be at 20% y-o-y till 2022. The norms for construction are based on actual functioning sewage and solid waste treatment plants in India. Moreover, to ensure smooth operations and proper sanitation for the country maintenance norms of 10% of the total built up area have been applied. For the manpower calculations for maintenance, not all steps involved in new solid waste and sewage treatment plant construction are considered. Certain steps have been omitted and discounting of manpower made in certain steps, as the basic infrastructure would exist and only minor repair / maintenance would be required. The manpower requirement for the sector basis construction and maintenance projection is 0.9 Mn in 2022 (0.37 Mn additional manpower required over 2012). The following table provides the manpower requirements for this sector, projected on the basis of SME inputs.

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Figure 29: Solid Waste Sewage generated y-o-y Solid Wasteand & Sew age Generation Projections
Thousands 180 160 140 Thousands 50 45

Tons (Solid Waste)

120 100

35 30 25

80 20 60 40 20 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Solid w aste Generation Sew age Generation 15 10 5 0

Source: Aon Hewitt Analysis

Million Liters per day (Sewage)

40

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Table 45: Manpower Estimations for Solid Waste Management
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 900 400 16,000 37,900 8,800 13,200 18,500 13,600 18,800 4,900 4,200 17,200 14,300 9,700 20,900 14,700 10,200 12,600 3,200 4,000 2,100 10,800 4,200 2,800 15,800 500 7,500 900 500 223,200 512,000 Solid Waste Management Manpower Estimations 2017 1,000 400 20,200 48,000 11,100 18,200 23,500 18,600 26,100 6,700 5,700 23,800 18,100 13,400 26,500 18,600 14,000 15,900 4,200 5,500 2,900 15,000 5,900 3,800 19,900 700 10,400 1,300 600 307,500 688,000 2022 1,100 400 25,000 59,500 13,700 23,800 29,200 24,200 34,200 8,700 7,400 31,300 22,500 17,600 32,800 23,000 18,200 19,700 5,400 7,200 3,900 19,700 7,700 5,000 24,500 1,000 13,600 1,700 800 401,500 884,000

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Irrigation Infrastructure

Even 60 years after independence, India is still primarily an agriculture based economy. Agriculture is also a major contributor (over 20%) to the GDP, and steady growth in agriculture helped India grow even during the recent global recession (2008-10).

India has had a fair amount of success in improving agricultural output. Most of it was observed during the Green Revolution, where improvement of irrigation systems was given priority. Several dams were constructed and an extensive canal infrastructure was developed to take water to the fields. Large canal systems such as the Upper Ganga Canal and the Indira Gandhi Canal were developed to take spare water from the major rivers to the areas (such as a Rajasthan) where its required.

The following table lists the potential available and currently tapped through different types of projects (dams, canals and check dams):

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Table 46: Irrigation Potential, Infrastructure created and Infrastructure utilized from various types of Irrigation sources (2006-07)
Potential (Mn Hectare) Major and Medium Projects (Dams, Canals etc) Minor Projects (Check Dams etc) Ground Water Total 58.5 17.3 64.1 139.9 Infra. Created (Mn Hectare) 43.3 14.1 66.9 124.3 Infra. Utilized (Mn Hectare) 34.4 8.3 48.4 91.1

Source: Central Water Commission, Aon Hewitt Analysis

Dam Infrastructure
India has the third highest number of dams after the US and China. The primary difference between the three countries is the size of the dams, with very few dams with a height greater than 150m constructed in India as compared to multiple such dams in the US and China [30]. Even other countries that are rich in water resources are constructing mega dams to capture the opportunity provided by these dams. Given these factors, most dams in India are now designed to mitigate these to the greatest extent. As a result, these dams primarily serve irrigation purposes rather than hydro power purposes and their height is therefore limited.

From Table x, we can see that there is potential for ~15.5 Mn hectares to be irrigated through dams and the accompanying canal network. Several hundred dams are already being constructed to tap this potential. However, given the delays mentioned above, the gestation period for these is quite high, and will take at least a decade to materialize.

There are three primary reasons behind our inability to realize the true potential of our water resources. First, most of the dams were designed in the period just after independence. Of the 4300 odd large dams (classified as having a height greater than 15m) in India, only 300 were present before Independence [30]. More than half of these were constructed in the period 1970 90 (aiding Green Revolution and beyond) [30]. In hindsight, given the population explosion and the resulting requirements, these projects had a lower scope than what could have been constructed.

As a result, we believe dam construction will continue but at a slower pace, and the dams constructed will be of a lower height, resulting in greater investment per hectare irrigated and lower irrigated area/dam than what can be achieved.

Second, dam construction itself has slowed down due to environmental concerns and problems in land acquisition.

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Canal Infrastructure
Aon Hewitt analysis foresees that new canals need to developed at the rate of 2.1% per year to meet future requirements, including canal infrastructure built to support upcoming dams. However, this would still leave a significant percentage of the net irrigable area without irrigation facilities, providing future opportunities.

At the same time, canal networks have grown slowly, with many of the older canals falling into disrepair. As a result, the area irrigated by canals has fluctuated quite widely (droughts in different regions have also played a part), and from a high of 17.44 Mn hectares in 1999-00, fell to a low of 14.01 Mn hectares in 2002-03, before rebounding to 16.60 Mn hectares in 2008-09 [30].

As per Aon Hewitt analysis, India needs to focus on new canal construction as well as redevelopment of the older canals. This has to include both the operational canals as well as those that have fallen into disrepair, in order to increase the longevity of the canal systems.

On the basis of the above specified rate and taking a base of 114,000 km of canals in 2008 (Aon Hewitt Analysis), the canal length to be constructed by 2022 would be an additional ~35,000 km.

Canal required y-o-y (km) Figure 30: Length of Length Canals required by end of each year (km)
Thousands 180 160 140

Canal Length (km)

120 100 80 60 40 20 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
Source: Aon Hewitt Analysis

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Check Dam Infrastructure

dangerously. In our opinion, check dams can be used as alternatives by harvesting rain water and ensuring that the water that would normally run-off is used rather than using ground water. We have calculated the number of check dams required to be constructed every year by defining a goal of replacing 20% of ground water use by the use of check dams, as well as irrigating the remaining potential by small projects through check dams. According to Aon Hewitt analysis, a total of 164,000 check dams would be required to be constructed by 2022, and the yearly projection is given in the figure below.

To cater to the gap left by canals and dams, the other infrastructure that can cater to irrigation needs is Check dams. These are permanent or temporary structures constructed by local organizations / citizens coming together to harvest rainwater or surface water runoff. These structures are basically small barriers of cement, concrete and stones constructed across the direction of water flow. The water flowing may be a seasonal river, a shallow stream or even surface water flowing during the rainy season.

Water collected in dams can be used by the means of Lift Irrigation, wherein electrically operated pumps are used to lift water to the nearby farmlands. As per research conducted by the Central Water Commission, ground water usage in India is lowering the water table

Check Dam Construction every year Figure 31: Number of Check Dams required to be constructed every year
20,000

No of check dams constructed

16,000

12,000

8,000

4,000

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Aon Hewitt Analysis

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Table 47: Maintenance and Construction of Irrigation - Projections
Irrigation - Canals New Canal Construction @ 2% growth (km) Canal Maintenance @ 10% of total length (km) Irrigation - Check Dams New Check dams to be constructed at 6% growth (numbers) Check Dams maintenance @ 20% of the total 8,900 30,841 Source: Aon Hewitt Analysis 11,900 81,000 15,940 148,160 2012 2,550 12,400 2017 2,827 13,750 2022 3,137 15,250

Manpower calculations for construction and maintenance of check dams and canals is based on inputs received from SMEs (subject matter experts). The projections and maintenance numbers have been drawn in consultation with industry experts and organizations. The maintenance of the check dams, due to high wear and rear is assumed to be 20% of the total number that would exist. As for canals, it is assumed to be 10% of the total length. For maintenance manpower calculations, not all steps involved in check dam and canal construction

are considered. Certain steps get omitted due to the existence of basic check dam and canal infrastructure . Given the new Check dam and Canal construction and maintenance projections, 4.8Mn workforce would be required in 2022 an addition of 1.6 Mn workforce over 2012. Based on these projections as well as inputs from SME, the manpower requirements for construction of irrigation infrastructure are provided on the following pages.

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Table 48: Manpower Estimations for Irrigation Infrastructure
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 126,100 337,700 450,300 66,300 2,260,700 3,241,000 Irrigation Manpower Estimations 2017 151,500 405,800 541,100 76,700 2,715,900 3,891,000 2022 200,600 537,300 716,400 98,000 3,268,100 4,820,000

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Water & Sanitation Infrastructure: Consolidated Demand across Job Categories


Figure 32: Manpower Requirements For Water and Sanitation Sector*

6.4

Manpower (Millions)

6 5 4 3 2.2 2 1.2 1 0 Water Pipeline Irrigation


2012

4.8 3.6 3.9 3.2

4.8 3.2

4.7 3.9

2.0 0.9 0.5 0.7 Solid Waste Management


2022

0.2

0.3 0.4

Sewage Pipeline

Strom Water Drainage

Water Treatment

2017

Water Pipeline Manpower Requirements 3.6 Mn (2012) 6.4 Mn (2022) Critical Skills Supervisor / Foreman, Machine Operator and Technical / Engineer

Irrigation Manpower Requirements 3.2 Mn (2012) 4.8 Mn (2022) Critical Skills Mason, Carpenter, Bar Binder/ Bender and Machine Driver

Sewage Pipeline Manpower Requirements 2.2 Mn (2012) 4.6 Mn (2022) Critical Skills Supervisor / Foreman, Machine Operator and Technical / Engineer

Storm Water Drainage Manpower Requirements 1.2 Mn (2012) 3.9 Mn (2022) Critical Skills Supervisor / Foreman, Machine Operator and Mason

Solid Waste Manpower Requirements 0.5 Mn (2012) 0.9 Mn (2022) Critical Skills Mason, Electrician, Welder and Painter

Water Treatment Manpower Requirements 0.2 Mn (2012) 0.43 Mn (2022) Critical Skills Mason, Electrician, Carpenter and Painter

Total Manpower requirement for the sector is 21.1 Mn in 2022, an additional manpower of 10.2 Mn over requirements of 2012,

The overall critical skills for the sector are Supervisor / Foreman, Bar Binder / Bender, Machine Operator and Technical / Engineer

Water pipelines, Sewage Pipelines and Irrigation commanding majority of the manpower requirements

*Refer to Annexure 3 for manpower distribution across levels

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Table 49: Consolidated Manpower Estimations for Water and Sanitation Infrastructure
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Grinder Radiographer Rigger Gas Cutter Store Keeper Unskilled Total 1,000 440 744,000 65,000 263,000 353,000 15,000 22,000 466,000 56,000 789,000 71,000 20,000 17,000 131,000 25,000 17,000 12,000 15,000 4,000 5,000 2,000 12,000 5,000 3,000 398,000 1,000 9,000 1,000 1,000 7,363,000 10,886,000 Water & Sanitation Manpower Estimations 2017 1,000 500 1,056,000 88,000 364,000 427,000 21,000 28,000 563,000 78,000 1,124,000 83,000 27,000 22,000 179,000 32,000 22,000 16,000 19,000 5,000 6,000 3,000 17,000 7,000 4,000 556,000 1,000 12,000 1,000 1,000 10,026,000 14,790,000 2022 2,000 600 1,561,000 120,000 574,000 567,000 29,000 37,000 746,000 108,000 1,672,000 107,000 38,000 29,000 246,000 42,000 30,000 22,000 25,000 7,000 9,000 5,000 24,000 9,000 6,000 806,000 1,000 16,000 2,000 1,000 14,256,000 21,098,000

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Category 5: Social and Commercial Infrastructure

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Category 5: Social and Commercial Infrastructure

Social Infrastructure
The 7.7% GDP growth witnessed by India in the last year follows several years of high growth (7 10% growth every year) [1]. This has resulted in sustained investment across industries, with the government investing heavily in infrastructure to aid growth. However, successive governments have overlooked the development of social infrastructure in the country. With population growth expected to be at 1.36% year-on-year, investment in critical social sectors to support the burgeoning economy have been minimal[31]. Education and healthcare, the two important aspects for people development and health to ensure manpower supply for the economy, have seen investments at around 1% of the GDP over the past few years[1]. The impact of overlooking the social infrastructure sector can be judged by the skill shortage being faced and malnutrition coming down by just 1%, adversely impacting the available manpower.

Moreover, after the first green revolution the government seems to have lost the foresight of continuing with the same to support the Indian population. Experiencing drought and fall in production, high food inflation has been the norm for the past year. Investment in agricultural activities to support production has been low. With, cold storage and post harvest warehousing almost being stagnant, wastage of fruits and vegetables and food grains has seen the country lose around 15% of its produce[32]. Fertilizer production too has seen little impact of the economic growth, with production almost stagnating.

However, waking up to the fact that 8% GDP growth, would be difficult to sustain by ignoring the social infrastructure, the government is targeting investing 5% of the GDP in the sector through the PPP model [1].

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Education Institutional Infrastructure

Education Infrastructure is of utmost importance to the growth and development of education in India. The sector has mainly been funded by, the central and state governments.

India has made progress in terms of increasing primary and secondary enrollment rate coupled with expanding literacy to approximately two thirds of the population.

Further, India's education system is often cited as one of the main contributors to the economic rise of India. However quality, penetration and supply of educational institutions remains a concern. Filling the gap for supply is private education, which merely accounts for 5% of market share, but in terms of value was estimated to be worth US$ 40 Bn in 2008 and is estimated to increase to US$ 68 Bn by 2012 [33].

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Table 50: Information Clusters and respective Unit of Measurement
Infrastructure Cluster Primary/Junior Basic Schools Middle/Senior Basic Schools High Schools/ Higher Secondary/ Intermediate/PreDegree/ Junior Colleges Degree and Above Level Universities/Deemed Universities/ Institutions of National Importance Present Numbers (2007-2008) 785950 320354 171862 18482 9653 Unit of Measurement sq. ft. per student sq. ft. per student sq. ft. per student sq. ft. per student sq. ft. per student

To accommodate this school going population, it requires a strong educational infrastructure in order to keep pace with the developing economy and provide it with quality manpower. The table defines the respective infrastructure clusters within the education infrastructure space and the basic unit of measurement used to define the same. The present numbers of respective clusters are also mentioned for your reference.

tertiary and higher education (World Bank Statistics). In the case of primary/junior basic schools, currently we have more than 785,000 schools
[31].

Further, our gross

enrollment ratio for the primary school segment is about 89%[world bank] or 140.3 Mn in absolute terms[31]. Assuming a 1% y-o-y increase in enrollment ratio and 1.36% y-o-y in our total population we estimate the primary enrolment for 2022 to be 193.04 Mn [31]. It was also estimated that about 86 sq. ft. of educational infrastructure space needs to be developed per student. Hence, a total of 16,600 Mn sq. ft. of infrastructure space will be needed to cater the demands of primary students

Cluster Wise Analysis


The projections for education, are calculated on the basis of current enrolment in the primary, secondary,

Figure 33: Primary Enrollment

Primary Enrollment

102% 100% 98% 96% 94% 92% 90% 88% 86% 84% 82% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Enrolment Ratio (Increase @1%) Population (Million)
Source: Aon Hewitt Analysis

1600 1400 1200 1000 800 600 400 200 0 Primary Enrolment at Projected 1% Increase

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Figure 34: Secondary Enrollment

Secondary Enrollment

1600.000 1400.000 1200.000 1000.000 800.000 600.000 400.000 200.000 0.000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Secondary Enrolment Population (Million)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

Enrolment Ratio (Increase @2%)

Source: Aon Hewitt Analysis

Similarly in the case of secondary education the current enrollment ratios is about 57% or 95.30 Mn in absolute terms [31]. Assuming a 2% y-o-y increase in the secondary enrollment rate and taking the same assumption of population increase we have estimated the total secondary enrolment for 2022 to be 178.14 Mn. Further, taking 90 sq. ft. of infrastructure space per secondary student , we estimate the total space for catering to secondary enrollments to be about 16032 Mn sq. ft in 2022.

In the case of tertiary education the current enrollment is about 13.48% or 7.87 Mn in absolute terms which is expected to increase at a rate of 6% per year[31]. Therefore, the total enrollment towards the end of 2022 would be 9.64 Mn. The infrastructure space per student to cater to this segment is estimated at 100 sq. ft. per student. Hence, the total infrastructure space of 964 Mn sq. ft. needs to be available in 2022.

Figure 35: Tertiary Enrollment Tertiary Enrollment


12.0000 10.0000 8.0000
Millions

120.00% 100.00% 80.00% 60.00% 40.00% 20.00% 0.00% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Population For Tertiary enrolment (Million)
Source: Aon Hewitt Analysis

6.0000 4.0000 2.0000 0.0000

Enrolment Ratio (Increase @6%)

Percentage Enrollment

Millions

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Table 51: Projected Enrolments across Education Clusters
Education Enrolment for Primary education (Mn) Enrolment for Secondary education (Mn) Enrolment for Tertiary education (Mn) Enrolment for Higher education (Mn) 2012 158.54 119.85 3.665 18 2017 178.63 147.36 6.626 25.71 2022 193.04 178.14 9.648 41.35

Source: Aon Hewitt Analysis

For Higher education space the current enrollment is 12.40% or 112.90 Mn, which is estimated to increase 30% by FY 2022 [31]. The total enrollment on FY 2022 would be 41 Mn and would require additional infrastructure space of 6201 Mn sq. Ft. Here we assume 150 sq. ft. of infrastructure space to be. developed per student enrolled for higher education. The growth percentages in each of these education verticals is estimated by government predictions and historical analysis. The estimations for required manpower have been done after estimating the total educational infrastructure space required across different segments and taking inputs from SMEs.

Further, in order to estimate education infrastructure to be developed, space needed per sq ft. is considered. For example, 86 sq. ft. for primary student is used in estimating total developed. education infrastructure to be

For calculating workforce required for maintenance of infrastructure, blue collared workforce involved in infrastructure, maintenance of one unit is considered and replicated. Based on the norms, historical analysis and SME inputs, it has been projected that a total workforce of 5.8 Mn ( an addition of 1.54 Mn over 2012) would be required for construction and maintenance of Education Infrastructure in 2022. Required manpower to construct the education infrastructure based on SME inputs is as follows.

Figure 36: Higher Education Enrollment

Higher Population

1600 1400 1200

35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Population (Million) Population For Higher enrolment (Million)
Source: Aon Hewitt Analysis

Millions

1000 800 600 400 200 0

Enrolment Ratio (Ratio to be 30% by 2022)

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Table 52: Manpower Estimations for Educational Institution Infrastructure
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 8,800 3,500 1,287,000 237,500 138,600 105,500 117,600 58,500 23,300 177,100 139,500 30,000 109,800 79,200 65,900 89,700 15,600 17,100 13,600 20,500 18,900 147,300 28,200 10,200 107,000 1,194,400 4,244,500 Educational Institution Manpower Estimations 2017 10,600 4,200 1,534,000 282,000 165,500 126,200 140,100 69,200 27,300 213,100 164,000 35,500 131,600 95,500 78,200 107,300 18,600 20,200 17,500 24,200 22,400 177,000 36,700 12,000 127,300 1,449,200 5,089,700 2022 11,500 4,600 1,796,000 306,800 181,800 142,900 153,700 73,200 31,100 247,000 179,600 37,300 143,800 105,900 86,200 119,400 19,800 21,400 22,300 25,600 23,800 206,400 47,300 12,700 139,600 1,652,300 5,800,000

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Hospital Infrastructure

India has a current population of 1.15 Bn, growing at 1.36% annually [31]. With a burgeoning population, Indias healthcare system ranks low amongst other countries, with just 0.9 beds per thousand people [34]. The current scenario can be attributed to the declining public investments and expenditures in the health sector since 1992, which has weakened the public health sector. With 1.1 Mn beds and 15,000 hospitals, Indias need to add 100,000 beds annually for next 30 years to meet the global WHO standards of at least 3 beds per 1000 people [35].

With rising population and income levels, preference for private health services over public services is augmenting the growth of the healthcare delivery market. The healthcare delivery market in India is at a nascent stage with high demand and growth potential, driven by a surge in the number of treatments and the rise in cost per treatment.

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Table 53: Projected Hospital Infrastructure
Hospitals Number of hospitals to be built Total Beds Average Beds per person 2012 920 1231300 960 2017 1220 1632271 774 2022 1618 2163818 625

Source: Aon Hewitt Analysis

Healthcare is emerging as one of the most progressive and largest service sectors in India with an expected GDP spend of 8% by 2012 from 5.5% in 2009 [36]. As per Aon Hewitts research findings, Indias healthcare infrastructure sector is projected to grow at 5.8% [35]. To meet the WHO standards growth rate of 12% is required. The impact on the varying growth rates can be seen in terms of the bed availability projections as compared to the bed requirement projections for the population, as shown In the below figure. While estimating number of hospitals required, the population growth rate is considered to be around 1.36%, which is further translated into average beds per person. Based on our research, the area required per bed is about 250 sq. ft. In order to calculate the norms for manpower estimation, it is assumed that the hospital

has all the necessary facilities to provide world class healthcare. Hence, calculating the derived norms, takes into account the basic and specialty infrastructure required to deliver healthcare to the Indian population. For estimating maintenance of hospital infrastructure, manpower estimation takes into account activities involved in maintaining building infrastructure. Based on this aspect as well as inputs from SME, the manpower estimations for hospital infrastructure were arrived at. According to Aon Hewitts primary research findings and analysis, it has been projected that a total workforce of around 0.2 Mn ( an addition of 83,000 over 2012) would be required for construction and maintenance of hospital structure in 2022. The detailed manpower estimations are presented as follows :

Figure 37: Beds Created vs. Beds Required Beds created Vs Beds Required
Thousands 4500 4000 3500 3000 Total Beds at 5.8% grow th rate

Nos of Beds

2500 2000 1500 1000 500 0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Years Required Number of Beds as per WHO norms

Source: Aon Hewitt Analysis

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Table 54: Manpower Estimations for Hospital Infrastructure
Hospital Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrical Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 100 6,200 8,300 7,700 7,000 7,700 500 13,600 6,200 600 4,500 4,200 3,700 4,200 100 200 100 200 200 3,700 6,500 3,300 3,600 28,100 120,500 2017 100 7,900 10,600 9,800 8,800 9,700 700 17,100 7,900 800 5,800 5,400 4,700 5,300 200 200 200 300 200 4,700 8,200 4,100 4,600 36,100 153,400 2022 100 10,400 14,100 13,000 11,700 12,900 900 22,700 10,500 1,000 7,700 7,100 6,200 7,100 200 300 200 400 300 6,300 10,900 5,500 6,100 47,900 203,500

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Common Infrastructure for Industrial Parks, SEZ and Tourism Facilities

India has emerged as one of the world's top ten countries in industrial production as per the 'Yearbook of Industrial Statistics 2010 published by UNIDO (United Nations Industrial Development Organization). Surpassing Canada, Brazil and Mexico, India has reached the 9th position from the 12th position it held in 2008 [51]. In April 2010, the Index of Industrial Production (IIP) estimated a growth of 19.4% in the manufacturing sector as compared to April 2009 [51]. Further, according to the Ministry of Statistics and Programme Implementation, cumulative growth for FY 2009-10 over 2008-09 is 10.9% [51]. These statistics clearly outline the need of infrastructure development in this sector. Mostly domestic manufacturing areas would be covered by the DTA (Domestic Tariff Area) and export oriented zones will be enclosed by the SEZs (Special Economic Zones). In India, SEZs were introduced in 2005 and have been an essential contributor to the Indian GDP, even in FY 2010 exports from special economic zones

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Table 55: Projected SEZ Land Utilization Break-Up
SEZ and Industrial Land Under Urban, Industrial and Non Agri Land (in hectares) 2012 2017 2022

1,247,921

1,392,921

1,537,921

Source: Aon Hewitt Analysis

Table 56: Infrastructure Land Utilization Break-Up

Infrastructure Included in SEZs

Industrial Infrastructure

Multipurpose roads and lanes

Supporting Commercial Infra.

Logistics/ Warehousing

Infrastructure Distribution in SEZs

50%

15%

10%

25%

Source: Aon Hewitt Analysis

(SEZs) grew by over 122% to US$ 49.5 Bn as compared to FY 2009[51]. India is fast emerging as a global manufacturing hub with a large number of companies shifting their manufacturing base to the country. In order to accommodate and promote the same, the government is planning to establish National Manufacturing and Investment Zones (NMIZs) to push the manufacturing share in gross domestic price (GDP). Tourism in India is the largest service industry in India. Currently, ranked 12th in the Asia Pacific region and 68th overall in the list of the world's attractive destinations, it is expected to grow at a rate of 8.8 % in the years to come [52]. In 2009, 5.11 Mn foreign tourists visited India. At the same time, ~562 Mn domestic tourism visits were made by Indian citizens [52]. The tourism industry in India generated about US$ 100 Bn in 2008 and that is expected to increase to US$ 275.5 Bn by 2018 at an annual growth rate of 9.4%[52].

industrial and non agricultural use, we have used a study conducted by the Economic Times Intelligence group as the basis of our analysis. This study envisages an addition of 290,000 hectares of land to come under non agricultural industrial land use over next 10 years [51]. Based on this projected industrial growth in the country, Aon Hewitt projected that about 2900 hectares will be developed every year ( till FY 2022) to meet the requirements. This land will comprise industrial infrastructure, inter SEZ roads and lanes, supporting commercial infrastructure and logistics/warehousing. The percentage split is given in Table 28. Estimating an increase of 29,000 hectares every year we have divided total tourism and industrial infrastructure as shown in Table 29. It is assumed that all social infrastructure would include all infrastructure related to tourism facilities. As for estimating maintenance manpower, the manpower requirements for maintenance of roads, warehouses, logistics and industries have been considered. On the basis of the estimations for the total infrastructure that needs to be developed for industrial use, tourism facilities and inputs from SMEs, it has been projected that a total workforce of around 15.9 Mn ( an addition of 1.5 Mn over 2012) would be required for construction and maintenance of Industrial infrastructure in 2022. The manpower requirements for this sector are depicted in the table on the next page.

Infrastructure to be developed
The total land area for India is 331 Mn Hectares, out of which about 8% i.e. 26.48 Mn is under urban, industrial and other non agricultural land [51]. Out of this, about 1.22% is under industrial use. Therefore, the total land under industrial use is 1.22 Mn hectares. While estimating the increase in land to be developed for

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Table 57: Manpower Estimations for Common Infrastructure
Common infrastructure Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 25,000 10,000 465,000 898,000 578,000 379,000 516,000 385,000 179,000 472,000 461,000 115,000 523,000 315,000 318,000 382,000 105,000 54,000 89,000 66,000 59,000 323,000 52,000 35,000 393,000 7,157,000 14,356,000 2017 25,000 10,000 485,000 918,000 599,000 399,000 537,000 406,000 200,000 493,000 482,000 115,000 544,000 325,000 339,000 403,000 112,000 54,000 96,000 66,000 59,000 343,000 52,000 35,000 404,000 7,610,000 15,115,000 2022 25,000 10,000 506,000 939,000 620,000 420,000 558,000 427,000 221,000 513,000 503,000 115,000 565,000 336,000 360,000 424,000 119,000 54,000 103,000 66,000 59,000 364,000 52,000 35,000 414,000 8,064,000 15,873,000

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Fertilizer

India is primarily an agriculture based economy. The agricultural sector and associated spheres provide majority of the population with employment. The fertilizer industry in India has played a pivotal role in ensuring the robustness of the agricultural sector and in the process, has helped India achieve self sufficiency in food grain and achieve rapid growth in the agricultural sector. As of 2010, India is the third largest producer and consumer of fertilizers in the world after China and United States. The growth of the industry has been largely determined by policies pursued by the government. The government has exercised extensive controls on the pricing, distribution and movement of fertilizers. Moreover, the industry is capital intensive and the production process itself is very energy intensive. Thus, the combined cost of feedstock and fuel accounts for approximately 55% to 80% of the cost of production, depending on the type of fertilizer [42].

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Figure 58: Current and Projected Fertilizer Manufacturing Requirements
Fertilizer Total Fertilizer Production ( growing @ 1.2%) In Million Total Fertilizer Infrastructure maintained ( in Mn sq ft.) to be 2012 37.44 93 2017 38.49 96 2022 55.62 98

Source: Aon Hewitt Analysis

Determinants of fertilizer demand are rainfall, prices, cropping pattern and government policy. There has been a significant growth in the consumption of fertilizers in the past few years due to overall good monsoon. However, fertilizer production has remained range-bound in the last decade. The surge in fertilizer demand and stagnant to modest increase in production has widened the gap between consumption and production, thereby causing large dependence on imports. With the rapid growth in agriculture, India lost around US$ 17 Bn worth of crops due to non-availability of fertilizers
[37][40].

production at 7.5%[37][40]. Based on the assumed growth rates, the demand and supply match would be achievable by 2022 (Figure 30). For fertilizer plant construction, the average size per plant, is 0.65 Mn ton per annum. This is based on the current average capacities installed across India [41]. It was observed that the area required for a fertilizer manufacturing plant is approximately 1.6 Mn sq.ft. [43] India by 2022 would need 88 such manufacturing facilities to meet its growing demand. In estimating the manpower numbers needed, the blue

In order to estimate manpower requirements, the total number of manufacturing facilities have been projected based on total fertilizer demand. The projection of total fertilizer demand has been made as per the production of fruits, vegetables and food grain ( according to the annual report of Food Corporation of India ). Centered on Aon Hewitts primary and secondary research, fertilizer demand is expected to grow at 5%, y-o-y and

collared workforce, required for refurbishing operations in the fertilizer plants were taken into account. Based on these assumptions, projections and SME inputs, the total workforce required for construction and maintenance of such facilities would be 11.8 Mn ( an addition of 6 Mn over 2012). The manpower requirements associated with the construction of such facilities have been shown on the next page :

Figure 38: Fertilizer: Demand vs Production Fertilizer: Demand Vs Production


100 90 80 70 60 Fertilizer Prouction (Inc @ 7.5%) 50 40 30 20 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Million Tons

Fertilizer Demand (Inc @ 5%)

Source: Aon Hewitt Analysis

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Table 59: Manpower Estimations for Fertilizer Plant
Fertilizer Plant Manpower Estimations Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 15,300 6,100 202,200 500,700 291,900 144,000 244,600 151,500 400 186,100 187,600 80,600 277,300 194,600 112,900 167,800 37,700 44,600 22,900 53,800 48,000 117,100 45,800 30,100 212,900 2,333,900 5,711,000 2017 21,900 8,800 289,700 718,300 418,800 206,500 351,000 217,500 400 266,800 269,300 115,700 397,900 279,300 161,700 240,600 54,200 64,000 32,800 77,200 69,000 167,900 65,700 43,100 305,700 3,348,300 8,192,000 2022 31,400 12,600 415,100 1,030,700 601,000 296,300 503,600 312,300 400 382,700 386,700 166,100 571,100 400,900 231,900 345,000 77,800 91,900 47,200 110,800 99,000 240,900 94,300 61,700 438,800 4,804,600 11,755,000

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Post Harvest & Cold Chain Infrastructure

India is one of the largest agrarian economies, with the agricultural sector contributing approximately 14.6% of India GDP during 2009-10 at 218 MMT [44]. However, with a total land area of 2.3% of the world, India has to support 17.5% of the worlds population. The food basket for 2009-10 accounted for 218 MMT of food grain produce, 133.5 MMT of vegetables and 72.3 MMT of fruits [49]. Still, one in three of the world's malnourished children live in India and over 63% of children in India go to bed hungry. Further, more than five Mn tons of food stocks rot annually without refrigeration or proper storage [45].

The reason for the lost produce, lies with post harvest activities pursued by India. The production of food grain and Fruits & Vegetables is supported by merely 28.84 MMT (with FCI) of food grain storage and 22 MMT of cold storage space[48][50]. With the current post harvest infrastructure, India wastes 10% of its food grain production and around 30-40% of the fruits and vegetable production, primarily due to inadequate infrastructure [45][49]. In 2008, there were agricultural

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Table 60: Current and Projected Storage Requirements
Warehouse Food Grain Production (Mn Tons) Fruits and Vegetable Production (Mn Tons) Required Storage for food grain (Mn Tons) Required Storage for Fruits and Vegetables (Mn Tons) 2012 239.83 247.7 50.36 1400.4 2017 260.37 338.5 54.68 1913.7 2022 282.68 464.5 59.36 2625.5

Source: Aon Hewitt Analysis

produce losses of around US$ 12 Bn owing to the absence or shortage of post-harvesting infrastructure, such as cold storage chains, transportation and storage facilities [45].

analysis that for every ton of food grain produced, 0.21 ton storage is required. As for cold storage, the requirements have been calculated for only fruits and vegetables, which are the main elements of the cold storage space. However,

To meet the growing food demand of its population India has envisaged an addition of 17 Mn tons of food grain storage space in the next five years. However, with agricultural growth envisioned at around 2% annually, a growth rate of 5.6% needs to be achieved to ensure minimal food grain wastage.

with a high factor related to each ton of cold storage, it can be assumed that other perishable items have also been accounted for in the calculation and hence an overall high growth rate is required. Based on Aon Hewitts analysis, it has been assumed that for infrastructure construction of post harvest and cold chain warehouses, 5.92 sq.ft of area per ton is required. For cold storage, it has been assumed that each facility would accommodate 4,500 tons. Projections have been made based on this assumption. The number of facilities required to be constructed by FY 2022 would be 23,000. However, in order to meet the countrys requirement at 28% growth rate, the number of facilities required to be constructed are 100,000.

Moreover, cold chain in India has long been ignored. With government realizing its importance and inviting PPP models for setup, an annualized growth rate of 28% is still required to plug the gap by 2022. Realizing the limitations that can arise for achieving such a high growth rate, 15% growth rate for the sector has been envisaged, based on high private sector participation.

There is a requirement of 30Mn tons of extra storage space by FY 2022. This is based on the Aon Hewitt

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Gap required cold storage facilities and constructed at growth rate of 15% Figure 39:between Gap between required Cold Storage facilities and constructed at growth rate of 15%
120000 Nos of facilities constructed @ 15% grow th rate

100000

Nos of facilities @ 4500 ton storage space

80000

60000

40000

20000

Actual Nos of facilties required to plug the gap

0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Source: Aon Hewitt Analysis

Food Corporation of India being the central authority governing the storage of food grain production, estimations for both food grain and fruits and vegetable storage are taken from annual reports of the FCI. Manpower required for construction of 23,000 facilities of cold storage and 30 Mn tons of food grain storage infrastructure, has been projected on the basis of SME inputs and is provided in the following table. For the purpose of manpower calculations, estimations take into account, all types of storage throughout the value chain, from production to retail. The required storage capacities have been calculated taking into account, wastage, historical growth and current capacities. The number of facilities (warehouses) have been estimated by taking an average of 4500 tons per storage facility.

For estimating maintenance infrastructure, manpower requirements per facility is calculated and then replicated throughout. Based on these assumptions and projections, it has been calculated that the total workforce required for construction and maintenance of 23,000 facilities of cold storage and 30 Mn tons of food grain storage infrastructure would be around 2.8 Mn in the year 2022. Over 2012, an additional manpower of 1.3 Mn would be required to reach this figure. These requirements have been projected on the basis of SME inputs and have been provided in the following table.

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Table 61: Manpower Estimations for Post Harvest and Cold Chain Infrastructure
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 400 200 112,000 39,600 36,100 18,200 19,300 18,000 16,400 30,100 30,100 1,300 53,300 89,300 83,500 24,100 6,000 600 5,900 800 700 18,100 400 300 36,000 848,400 1,489,100 Post Harvest and Cold Chain Manpower Estimations 2017 600 200 151,900 53,800 48,900 24,600 26,200 24,400 22,200 40,800 40,800 1,800 72,400 121,100 113,300 32,700 8,100 800 8,000 1,000 900 24,500 600 500 48,800 1,151,100 2,020,000 2022 1,100 400 209,100 77,800 68,900 34,800 37,600 34,300 30,300 57,400 57,400 3,200 101,400 166,500 155,600 46,100 11,400 1,500 11,200 1,900 1,700 34,500 1,100 900 68,600 1,589,400 2,804,100

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Social and Commercial Infrastructure: Consolidated

Figure 40: Manpower Requirements For Social and Commercial Infrastructure


Millions

18 16 14 12 10 8 6 4 2 0

15.88 15.12 14.36 11.75 8.19 5.71 4.25 1.49 2.02 5.09 5.80 2.80 0.12 0.15 0.20 Hospital

Manpower

SEZ and Industrial

Fertilizer
2012

Education
2017

Warehouse
2022

SEZ and Industrial Manpower Requirements 14.3 Mn (2012) 15.8 Mn (2022) Critical Skills Mason, Electrician, Carpenter and Painter

Fertilizer Manpower Requirements 5.7 Mn (2012) 11.7 Mn (2022) Critical Skills Mason, Electrician, Carpenter and Plumber

Education Manpower Requirements 4.2 Mn (2012) 5.8 Mn (2022) Critical Skills Mason, Electrician, Carpenter and Painter

Post Harvest & Cold Chain Manpower Req. 1.4 Mn (2012) 2.7 Mn (2022) Critical Skills Mason, Electrician, Carpenter and Plumber

Hospitals Manpower Requirements 0.12 Mn (2012) 0.20 Mn (2022) Critical Skills Mason, Electrician, Carpenter and Painter

Total Manpower requirement for the sector is 36.43 Mn ( in 2022), with SEZ and industrial governing majority of manpower requirement

It was also observed that, Mason, Electricians and Carpenters are the three top trades that are prominent across all sub sectors in social infrastructure.

*Refer to Annexure 3 for manpower distribution across levels

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Table 62: Consolidated Manpower Estimations for Social and Commercial Infrastructure
Job Category 2012 Architect / Designer Draftsman Supervisor / Foreman Surveyor Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Semi Skilled Mason Carpenter Plumber Electrician Bar Binder/ Bender Blacksmith Welder Machine Operator Machine Driver Painter Glazier Fitter Technical / Engineer Unskilled Total 50,000 19,800 2,073,000 1,684,000 1,052,000 654,000 905,000 613,500 219,100 878,900 824,400 227,500 968,000 682,300 584,000 668,000 164,400 116,500 131,500 141,300 126,800 609,200 133,000 79,000 752,500 11,562,000 25,920,000 Social and Commercial Manpower Estimations 2017 58,000 23,200 2,470,000 1,983,000 1,242,000 765,100 1,064,000 717,800 249,900 1,030,800 964,000 268,800 1,151,700 826,300 696,900 788,900 193,100 139,200 154,500 168,700 151,500 717,100 163,000 95,000 890,000 13,595,000 30,570,000 2022 69,000 27,600 2,936,000 2,368,000 1,485,000 906,000 1,266,000 848,000 283,000 1,223,000 1,137,000 323,000 1,389,000 1,016,400 839,900 941,600 228,200 169,100 183,900 204,700 183,800 852,100 206,000 116,000 1,067,000 16,158,000 36,430,000

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Supply Demand Gap Analysis

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Supply Demand Gap Analysis


Aon Hewitts primary research reveals that in 2010-11 the manpower employed in the infrastructure sector was 32 Mn. The manpower breakup for the infrastructure sector is assumed to be in the same ration as projected for 2022 excluding telecommunication (Telecom was not identified as an infrastructure sector in 2010), as this is the only probable way of estimating the split of 32 Mn in infrastructure sector for 2010-11. Basis the analysis the manpower split is 2010-11 is as follows (Figure.42):

Figure 41: Supply Side Manpower distribution across sectors for 2010 (32 Mn) based on 2022 manpower distribution projections
Transport 23%

Social and Commercial 46% Energy & Utilities 11%

Water & Sanitation 27%

In comparison to 2010, the manpower distribution for 2022 with the addition of telecommunication is as shown (Figure 44):

Figure 42: Supply Side Manpower distribution for 2022


Telecom 10% Transport 13%

Energy & Utilties 11%

Social and Commercial 42%

Water & Samitation 24%

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Table 63: Manpower Requirements 2010 and 2022
Sectors Transport Energy & Utilities Water & Sanitation Social & Commercial Communication Total 2010 (Aon Hewitt Analysis) 7.4 Mn 3.5 Mn 6.4 Mn 14.7 Mn 32 Mn 2022 (Aon Hewitt Analysis) 11.4 Mn 9.7 Mn 21.1 Mn 36.4 Mn 8.4 Mn 87 Mn

For 2010, basis the construction and maintenance of infrastructure a demand of 43.4 Mn (Does not include communication), blue collared workforce was observed. However, with supply of only 32 Mn, a gap of 11.4 Mn existed in 2010. The social and commercial infrastructure, which serves as the backbone for sustaining Indias population growth and well being, emerges as the largest sector, in terms of blue collared workforce demand. Basis comparisons infrastructure to 2010, Social and commercial sector would need an additional

on the infrastructural requirements of the nation, the manpower requirement for the sector 2022. is 11.4 Mn in

The energy sector, which serves as the driver of the of Indian economy constitutes of, Oil & gas pipelines, storage, power generation, transmission and distribution, would be employing 3.5 Mn blue collared workers in 2010, considering the above assumption. Based on the infrastructure requirement for 2022, the energy sector would need to employ 9.7 Mn blue collared workforce in 2022. Telecommunication sector, historically has not been under infrastructure sector, however, with broadband being the next big thing, infrastructure development in the sector is a requirement. The infrastructure development in the sector majorly involves the laying of the fibre optics cables throughout the country, which mainly involve unskilled workforce accounting for 91% of the manpower requirement. The manpower required by the telecommunication sector in 2022 would be 8.4 Mn. A consolidated manpower requirement of 87.02 Mn blue collared workforce would be required in 2022 by India to sustain its economic growth. An additional manpower of 55.02 Mn over 2010.

manpower of 21.7 Mn in 2022 (Table 63). SEZ and Industrial infrastructure demands the maximum manpower in the sector, i.e. 15.9 Mn in 2022. Furthermore, with rising population demand for water and sanitation is bound to increase. With water and sanitation being the basic amenity requirement, the potential fro growth is immense. This fact is highlighted by the emergence of water and sanitation as the second largest employer of blue collared workforce in 2022, with an additional manpower requirement of 14.7 Mn over 2010. Water pipelines command the maximum blue collard workforce requirements, that is 6.4 Mn in 2022. Transport sector, which forms the backbone of the infrastructure development, employed 7.4 Mn blue collared workers in 2010, based on the assumption stated earlier. The sector constitutes of Roads, Railways, Airports, Ports and Inland waterways. Based

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Industry Speak

The Indian economy has witnessed considerable progress in the past few decades. The infrastructure sector has been a key element in this growth.

The infrastructure sectors has been primarily regulated and funded by the government. It was only post 1991 that the sector was opened to more private and international players. Currently, the sector involves more than 200 companies in the construction sector. In addition to these firms, there are about 1,20,000 class A contractors registered with various government construction bodies. There are thousands of small contractors, which compete for small jobs or work as sub-contractors of prime or other contractors.

It was also observed that the industry is highly unorganized with a series of middlemen/subcontractors between the actual company taking the contract to the main company executing the project. This chain is one of the fundamental reasons leading to labor issues and concerns.

During the course of the study Aon Hewitt met a number of infrastructure companies, industry associations, government bodies and central ministries. Some of the key themes captured during these meetings are as follows :

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Insufficient Safety Training


A common theme that emerged out of our discussion with industry players was that lack of training in safety procedures have caused many accidents on work sites which have further lead to loss of value and lives.

Skill Training a more Lucrative Option than Formal Education


It was observed that for the blue collared workforce, the infrastructure industry compensates candidates which are more skillful and with more on the job experience

One of the key suggestions given by the industry is that though much of the labor learn on the job, their must be specific mandatory courses on safety measures and risk aversion.

Therefore, individuals value on the job training more than formal education. For example, a primary school dropout with past experience will be compensated more than a secondary one as he would have achieved more experience on the job.

Migratory Agro based Unskilled Labor


The industry also recognized that a large part of the labor working in the infrastructure industry is migratory and unskilled.

Need for Short-term Training Courses


During our supply side analysis, it was established that only 2% of the infrastructure industry workforce is formally trained.

It was also observed that most of the labor is agro based and have entered this industry for short term incentives or lack of agro based opportunities. Short term incentives may includes government schemes such as NREGA which greatly affects labor supply and availability.

When the demand of labor is high, a number of industry conglomerates would train unskilled labor by running short term in house training programs. The common courses which conglomerates mostly train in are Safety, Quality and internal systems.

Unorganized Sourcing
In the case of labor sourcing In the infrastructure sector, it is observed that the team executing the project would outsource labor recruitments to individuals called labour thekedars, who would be solely responsible for the sourcing of labor across all job trades.

No Social Benefits
One of the key findings that the industry recognized that as no formal employment was provided by the construction companies to the labor, they were not covered by any social benefits.

Therefore, a number of individuals involved in this sector would be declined of their rights to insurance, health benefits, wages and safe working conditions.

These individuals, which themselves are experienced labor themselves, would then source labor from different work sites and villages without background checks or qualification tests.

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Long Chain of Middlemen


As established earlier that this sector involves a long chain of middlemen during project execution at all stages and activities.

Unavailability of Skilled Labor


During our interviews with the industry, one of the most common concerns raised by all the infrastructure sub sectors was the unavailability of skilled labor across all job trades.

It is due to the existence of such a long chain that the labor wages get down at each level. Many times the labor is completely declined of any wage even after days of service.

This gap is likely to grow in the light of increased funding in the infrastructure sector and no formal skill training programs

Insufficient Career Progression Opportunities


A number of job trades involved in the construction sector are generic and will serve their purpose across all sub sectors.

No Contractual Obligations, only Daily Wagers


The industry suffers from not only a lot of inter city migration but also high intra-city migration.

This is because the industry supports daily wagers As the number of specialized skills are less, there is a high amount of commoditization of labor skills. Due to this commoditization, a skilled labor even after 8-10 years in the industry does not have much options to progress in their career, and is largely compensated the same way too. more than long term contracts for labors. Hence, labor is always on a lookout for opportunities, as no job security exists.

Provident Fund and Welfare Cess

Lack of Hygiene and Health Facilities

Construction companies would provide PF to only those employees for which they have attained labor licenses. In pressure of regulations companies would issue licenses to about 20% of the onsite labor. Thus, only 20% of the labor would actually get PF benefit. Further, the building and construction act of 1996, aimed to establish construction labor welfare boards to levy cess and administer social security schemes[53]. But this has also not resulted in any improvement.

There is an utter lack of hygiene at construction sites. The condition is even deplorable for women workers who live under unbearable unhealthy conditions and handle the double burden of work and family.

This is not only unhygienic for all workers at the site, but also effects the future of the children of the construction workers.

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Operations

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Introduction
Objective of the Module
As the first phase of the project, the manpower requirements for construction and maintenance of various infrastructure sectors was projected. It was also realized that along with the development and maintenance of infrastructure, handling infrastructure operations is extremely vital and requires services of a skilled workforce. The area, therefore, presents a great opportunity in training people in significant numbers so that the right inputs of skilled workforce can be given to the infrastructure operations, as well. Keeping this view in mind, the second phase of the study was conducted to project manpower required in handling operations of various infrastructure sectors till 2022.

Infrastructure Operations in India


The Public Private Partnerships (PPP) are increasingly being seen as instruments for meeting Indias infrastructure operation needs and for provision of infrastructure services. A recent Stanford research on Indian Infrastructure has established that while creation of new infrastructure, entailing substantial early stage risk, is best done by professional entities in the public sector, these new assets can be given out on PPP under the reverse BOT mechanism once commercial operations start. In a lower risk environment such as operations of existing infrastructural assets, involvement of private sector is viable and easier both from execution and financing perspectives [53]. In recent years, several private firms have emerged in the area of infrastructure operations , whether it is operations of physical infrastructure, such as existing highways, power plants and urban infrastructure, or social infrastructure such as health and education. Quite fittingly, some of the norms of infrastructure operations used in this report are also based on the internal structure of certain private entities.

Module Scope
In this report, we examine the manpower demand for infrastructure operations of 14 infrastructure sub-sectors - Hospitals, Fertilizer Plants, Water Treatment Plants, Solid Waste Management, Roads, SEZ and Industrial, Telecommunication, Power ( Generation, Transmission and Distribution) and Oil & Gas Operations (Pipelines, Storage, Refineries and Petrol Pumps) The report does not include the projections of the sub-sectors already covered in previous sectoral studies conducted by NSDC. The following table ( Table 63) encapsulates the scope of the module.

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Table 64: Module Scope Sectors
Roads Transport Railways (Manpower Freeze and on the decline) Broadband Telecom Mobile Towers Electricity Transmission Electricity Distribution Electricity Generation Energy Oil & Gas Pipelines Oil/Gas/Liquefied Natural Gas (LNG) storage facility Includes strategic storage of crude oil Petrol Pumps and Refineries Hospitals Social & Commercial Fertilizer (Capital Investment) Common Infrastructure for industrial parks, SEZ and tourism facilities Water treatment plants and Pipelines Water and Sanitation Storm water Drainage System Solid Waste Management

Sub Sectors

Infrastructure Operations Structural Levels


As per Aon Hewitts repository of organization structures, the workforce involved in infrastructure operations is typically involved at four levels : Supervisor & OM, Junior Management, Middle Management and Senior Management. varies substantially at each of these levels. Therefore, manpower projections have been done for these levels apart projecting the consolidated demand by 2022.

The definitions of all the four levels have been explained in the table below ( Table 64)

The nature and proficiency levels of skill sets required

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Introduction

Table 65: Level Definitions

Senior Management

15+ yrs of experience, having professional and basic qualifications e.g. BE, MBA, CA, among others

Middle Management

8-15 yrs of experience, having professional and basic qualifications e.g. BE, MBA, CA, among others

Junior Management

3-8 yrs of experience, having done higher education and or qualified engineer, technician, Mgmt Trainee

Supervisor & OM

< 2 yrs of experience, having done higher education and or qualified engineer, technician. Experienced workmen with high degree of skill will also be accounted for in this category

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Roads

India, as per the Ministry of Ministry of Road transport and Highways annual reports (2010), has 70,548 km of National highways and 128,000 km of State highways. This vast network of highways needs to be consistently maintained and expanded. The revenue for such activities is generated through toll collection. With requirements of managing the entire National highway and State highway network, toll collection is of prime essence in road operations. For years, toll collection was an activity handled entirely by NHAI and state governments. However, the advent of private-public partnerships (PPP) has changed it all. Today, many road projects are awarded to private developers, who execute them on a build-operatetransfer (BOT) basisnearly 75% of these projects are BOT projects. The developers bag a road contract, raise funds, build the road and collect tolls for 15-20 years to recover their investment and profit from it. A developer has to use this toll revenue to meet all costs, whether it is to service debt or undertake maintenance activity. Given this, efficient toll collection is of paramount importance for developers[54].

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Road - Operations
Figure 43: Consolidated Manpower Demand Toll Operations
Thousands 40 35 30 36.4

Manpower

24.8 25 20 15 10 5 0 2012 2017 2022 16.8

As of August 2011, as per Indian Tollways, there existed 268 toll barriers on National highways generating Rs 55.16 billion in revenue collection for 2010-11. Further, as per Indian Tollways[55], it has been established that for smooth operations of roads, a toll barrier should be present after every 80 km of highway stretch. Furthermore, it has been assumed that number of toll barriers would grow at a rate of 16% over the existing base. Basis this growth rate, by 2022, a total of 1371 toll barriers would be required on Indian roads. Given the operations projections, a total workforce of 36,400 would be required in 2022 - an addition of 17,800 people over 2012 (Figure 42).
Tho usands 40

The current manpower split across operational levels and level definitions are based on Aon Hewitts internal analysis and databases (Figure 43). Furthermore, considering the split across levels ( Figure 44), at senior level, 834 people would be required by 2022. At middle management level, the requirement would be 5000 while at supervisory level, a total of 30,600 people would be required ( an addition of 8,200 over 2012) by 2022.

100%

2%

35 30 25 0.568 3

0.834 5

14%

80% 84%

20 0.386 1 5 1 0 1 4 5 2 21 31

60% Manpow er Split for Roads


Superviso rs M id M gmt Sr M gmt

0 201 2 Superviso rs 201 7 M id M gmt 2022 Sr M gmt

Figure 44: Manpower Split for Operations in Roads

Figure 45 : Manpower requirement for Operations in Roads across levels

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Power Generation, Transmission and Distribution

India has ambitious plans of adding over 180,000 MW of generation capacity as well as associated Power Systems in the 11th and 12th plans, more than the cumulative capacity addition achieved till date[56]. With such an ambitious target, the power sector requires augmentation of capacity across the value chain including manufacturing, construction, fuel and material supplies, project planning and implementation, financial management and operations and maintenance management [57]. Therefore, a great emphasis is being laid on the need to improve the efficiency, output and availability of power generation plants, transmission and distribution stations. The need to enhance plant life has also been strongly felt. This makes it imperative to continuously optimize the operations of power plant and stations. In such a scenario, it is being envisaged that the power sector would require additional skilled manpower to handle capacity addition in generation, transmission and distribution operations.

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Power (Generation, Distribution and Transmission) - Operations


Figure 46: Consolidated Manpower Demand Power Operations
Millions 3 2.1

Manpower

2 1.3 1

1.6

0 2012 2017 2022

At the same time, the improvements in technology and the increasing scale of operations would help reduce the manpower requirement per MW [58]. Basis Institute of Energy Management and Researchs (IEMR) report on the Human Capital Challenges in the Indian Power Sector, it is assumed that manpower required for operation of Power Generation, Transmission and Distribution would grow at 5.3% year on year (y-o-y). The Manpower in the Power sector at the end of 10th plan has been approximated to be 0.95 millions as per the Planning Commissions Working Group on Power for 11th Plan. Considering these manpower operations projections, it has been calculated that a total workforce of 2.1 Mn would be required in 2022 - an addition of around 76,000 personnel over 2012 (Figure 45).
M illions

The current manpower split across operational levels and level definitions are based on Aon Hewitts internal analysis and databases (Figure 46). After taking into account the split across levels ( Figure 47), it has been projected that about 0.21 Mn personnel would be required at the senior level by 2022. At middle management level, workforce requirement of around 0.26 Mn has been estimated. As per our analysis, by 2022, a total of 0.24 Mn people would required at the junior management level while the total supervisor and O&M workforce requirement would be 1.3 M in 2022.

100%

10% 13% 12%


2 0.1 6 0.1 3 0.20 0.1 6 0.1 5 1 .34 1 0.84 1 .03 0.1 9 0.21 0.26 2 0.24

80%

60%

40% 65% 20%

0% Manpow er Split for Pow er Sector


Sup & O&M Wo rkfo rce Jr M gmt M id M gmt Sr M gmt

0 201 2 Sup & O&M Wo rkfo rce 201 7 Jr M gmt M id M gmt 2022 Sr M gmt

Figure 47: Manpower Split for Operations in Power Sector

Figure 48 : Manpower requirement for Operations in Power Sector across levels

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Oil & Gas : Pipelines, Storage, Refineries and Petrol Pump

The latest India Oil & Gas Report from Business Monitor International forecasts that the country will account for 12.4% of Asia Pacific regional oil demand by 2015, while providing 11.2% of supply [59]. In order to bridge this demand-supply gap and to meet countrys rising energy needs, the government is investing heavily in the Oil and Gas sector. While the anticipated growth in the sector implies that the manpower involved in infrastructure creation will witness growth in future, it also means that huge manpower would be required in supporting and sustaining operations of both new and existing Oil & Gas infrastructure. It cannot be undermined that the growth in the sector would be contingent on the availability of skilled manpower in operations. Basis Ernst & Youngs (E&Y) report on the HR Challenges in the Indian Oil and Gas sector, it is assumed that manpower required for operation of Oil & Gas pipelines, storage, refineries and petrol pumps would grow at 9.5% year on year (y-o-y)[60].

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Oil & Gas (Oil & Gas Pipelines, Refineries, Petrol Pumps & Oil & Gas Storage) - Operations
Figure 49: Consolidated Manpower Demand Oil & Gas Operations
300 250 200 150 100 50 0 2012 2017 2022 111.0 178.0 283.0

The manpower in the Oil and Gas sector in 2009-10 has been approximated to be 92,500 based on, Basic Statistics on Indian Petroleum & Natural Gas (200910)[61]. Considering these numbers, it has been projected that a total workforce of 0.28 Mn would be required in 2022 an addition of 0.17 Mn over 2012 (Figure 48). These numbers include operational staff at all levels of infrastructure - upstream , middle stream and downstream. The current manpower split across operational levels is based on Aon Hewitts internal analysis and primary research (Figure 49).

Thousands

The manpower requirement for each levels has been projected on the basis of current manpower split across levels (Figure 50). Our calculations project that in 2022, around 6,000 personnel would be required at senior level in the operations of Oil & Gas sector. Also, at middle management level, the requirement would be 34,000 while at junior level, a total of 79,000 personnel would be required. At Supervisor & O&M level, a significant increase in manpower requirement is expected. Our analysis estimates that a workforce of 164,000 would be needed at this level in 2022.

Thousands

100%

2% 12%

300 6 250 200 4 21 15 0 2 10 0 1 3 31 50 65 0 1 03 1 64 50 79 34

80% 28% 60%

40% 58% 20%

0% Manpow er Split for Oil & Gas Sector


Wo rkmen Jr M gmt M id M gmt Sr M gmt

201 2 Sup & O&M Wo rkfo rce

201 7 Jr M gmt M id M gmt

2022 Sr M gmt

Figure 50: Manpower Split for Operations in Oil &

Figure 51 : Manpower requirement for Operations in Oil &

Gas Sector

Gas Sector across levels

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Telecommunication

Indias telephone network is one of the largest in the world and offers a wide range of services such as basic telephony, internet, mobile/cellular, paging and V-SAT. The sector saw a phenomenal growth after the government simplified the policy environment and privatized the sector. It is also worth noting that since 2001, about two thirds of countrys private investment has gone into the telecommunications sector[62]. The entry of private operators has created a healthy competition in the market thereby, presenting enormous opportunities for the sector. However, running the network profitably presents a significant challenge to these telecom operators in a developing country like India. They have to consistently find new ways to reduce the cost of operating the network and serving customers. Telecom operations typically include managing network ( grids, base stations, towers, wireless systems, cables, equipment, maintenance etc.), handling IT operations and provision of customer care and support.

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Communication Infrastructure - Operations


Figure 52: Consolidated Manpower Demand Telecommunication Operations
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0
Thousands

1,581.0 1,256.0 941.0

2012

2017

2022
[63].

In India, a lot of operators share their tower infrastructure or outsource their operations to control costs. However despite these optimization models, the manpower requirement in telecom sector is expected to witness a steep increase - quite inline with sectors anticipated overall growth. The increase in manpower is based on the increase in mobile network and broadband connections, growth rates of which have been projected in infrastructure creation and maintenance module. Given these projections, a total workforce of 1.58 Mn would be required in 2022 in the telecom operations - an addition of 0.64 Mn people over 2012 (Figure 51). Operational and Maintenance manpower required across levels is based on BSNLs norms as published
Tho usands 1,6 0 0 1,4 0 0

in an Economic Times article

The current

manpower split across operational levels is shown in Figure 52. Considering this split across levels, it has been established that Telecommunication Operations would require approximately 24,000 personnel in 2022 at the Senior level. At middle management level, the workforce requirement would be 99,000, while at a junior level, a total of 1.2 Mn people would be required in 2022. Additionally, the total supervisor and O&M workforce requirement in 2022 is expected to be 0.24 Mn (Figure 53).

100%

1% 6%

24 99 1 9

80%
1,2 0 0

79 1 4 59 1 ,21 7 967

60%

1,0 0 0

77%
800 600 724 400

40%

20% 15% 0% Manpow er Split forTelecommunication


Staff & O&M Wo rkfo rce Jr M gmt M id M gmt

200 0 201 2
Sr M gmt

1 44 201 7 Jr M gmt

1 92 2022 M id M gmt

241

Staff & O&M Wo rkfo rce

Sr M gmt

Figure 53: Manpower Split for Operations in

Figure 54 : Manpower requirement for Operations in

Telecommunication Sector

Telecommunication Sector across levels

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Water Treatment

The Planning Commission, Government of India has estimated the water demand increase from 710 BCM (Billion Cubic Meters) in 2010 to almost 1180 BCM in 2050 with domestic and industrial water consumption expected to increase almost 2.5 times. The trend of urbanization in India is exerting stress on civic authorities to provide basic requirement such as safe drinking water and sanitation [64]. In order to guarantee safe drinking water, merely proper design and construction of a plant is not sufficient. In fact, alert and skillful plant operation is also of paramount importance in water treatment. Although Water Treatment Plants are designed and constructed by State Public Health Engineering Departments in India, their operation and maintenance is carried out by local Municipal Corporations. The typical water treatment plant operations include handling equipment or circuit failure, water leakages, process inefficiencies etc. across facilities and

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Water Treatment Plants - Operations


Figure 55: Consolidated Manpower Demand Water Treatment Operations
45 40 35 30 25 20 15 10 5 0
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38.7

26.0 21.0

2012

2017

2022

transmission lines of the plant. Besides these, ensuring water quality, improving efficiency , controlling costs and monitoring MIS ( Management Information System) indicators are also some of the broad operational imperatives. The manpower requirement in operations of plants depends on the increase in water requirements of the population. Growth rates of water needs have been projected in infrastructure creation and maintenance module and are the basis of manpower projections. Based on these norms and projections, it has been estimated that a total workforce of 39,000 would be required in 2022 - an addition of around 18,000 over 2012 (Figure 54). Operational and Maintenance manpower required
Thousands

across levels ( Figure 55) is based on New York City Waste Water Treatment System while the management level of Water treatment plants is based on organizational structure of Helix water district [65][66]. After taking into account the split across levels, it has been projected that about 250 personnel would be required at the senior level in 2022. At middle management level, workforce requirement of 1500 has been estimated. As per our analysis, in 2022, a total of 10,000 personnel would be required at the junior management level while the total supervisor and O&M workforce requirement would be 27,000( Figure 56).

120% 100% 80% 60% 40% 20% 0% Manpow er Split for Water Treatment
Staff & O&M Wo rkfo rce Jr M gmt M id M gmt Sr M gmt

40

0.2

1 .5

1% 4% 27%

35 30 25 0.1 20 5.6 15 0.8 26.6 1 9.5 1 4.5 5 0 201 2 Staff & O&M Wo rkfo rce 201 7 Jr M gmt M id M gmt 2022 Sr M gmt 1 0.3 0.2 7.6 1 .1

69%
10

Figure 56: Manpower Split for Operations in Water

Figure 57 : Manpower requirement for Operations in Water

Treatment Operations Sector

Treatment across levels

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Solid Waste Management

Solid waste management is one of the most pressing issues in urban cities in India since they are facing serious pollution problems due to the generation of huge quantities of solid waste. The annual waste generation has been observed to increase in proportion to the rise in population and urbanization, and issues related to disposal have become challenging as more land is needed for the ultimate disposal of these solid wastes [67]. In order to regulate huge quantities of solid waste, the Government of India has laid down certain mandatory requirements in the form of MSW Rules, 2000. Some of these include : Source segregation and storage at source, Door to door collection, Daily sweeping of the street, Transportation of waste in covered vehicles and Waste processing by composting or energy recovery [68]. This implies that skilled manpower is compulsorily required for operations of each of these aspects. The increase in manpower is based on the increased solid waste management requirements, growth rates of which have been projected in infrastructure creation and maintenance report. The workmen required for

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Solid Waste Management Infrastructure - Operations


Figure 58: Consolidated Manpower Demand Solid Waste Management Operations
Thousands 1,000 822.8 800 645.4 600 400 200 0 2012 2017 2022 505.3

solid waste collection is based on norms for Chennai Corporation, i.e. 10,000 workmen required for collection of 2,000 tons of solid waste [69]. On the basis of these norms, it has been projected that a total workforce of 0.82 Mn would be required in 2022 an addition of 0.32 Mn personnel over 2012 (Figure 57). The operational manpower split across levels (Figure 58) is based on operations of Chennai corporation and Navi Mumbai Municipal corporation [70][71]. The operational staff, i.e. waste collectors and dumpers account for 96% of the manpower required for solid waste management. The manpower split of the remaining 4% has been shown in Figure 59.

Our calculations project that in 2022, the workmen population required would be 0.8 Mn, i..e the 96% of the total operational manpower. The remaining 4% manpower requirements are, for senior level around one thousand personnel would be required in 2022. For middle management level, the requirement is 1900, while at junior level, a total of 3200 personnel would be required in 2022. The requirements for O&M staff and supervisors is projected to be 24,000 in 2022.

T ho usand s

1 .0 1 .9

100%

3% 6% 11%

30 25 1 .5 20 0.6 1 .2 15 1 .9 23.8 10 1 4.6 5 0 1 8.6 2.5 0.7 3.2

80%

60% 80%

40%

20%

0% Manpow er Split forSolid Waste Management

201 2 Staff Jr M gmt


Sr M gmt

201 7 M id M gmt

2022 Sr M gmt

Staff & O&M Wo rkfo rce

Jr M gmt

M id M gmt

Figure 59: Manpower Split for Operations in Solid

Waste Management Operations Sector

Figure 60 : Manpower requirement for Operations in Solid

Waste Management across levels

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Hospitals

With the growing economy, rising incomes, increased willingness among Indian consumers to pay for quality healthcare and to go to institutional providers and comparably lower costs of establishment in India, healthcare is a potentially attractive sector for both foreign and domestic investors[72]. Technological advancements both informational and medical are transforming the healthcare landscape in the country. This leaves huge scope for the provision of healthcare services in India, especially hospitals. Typically hospital operations include Utility Services, Support Services ( Laboratories, Pharmacy, Blood Bank etc.) , Clinical Services, Housekeeping and Dietary, Quality, handling IT and MIS etc. Hospital utility services largely involve functions such as Security, Laundry, Food and Dietary Department, Sterilization and Security. Maintaining hygienic conditions within the hospital premises is of immense importance and requires huge manpower numbers. Other functions also require deployment of skilled manpower for smoother operations.

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Hospital Infrastructure - Operations


Figure 61: Consolidated Manpower Demand Hospital Operations
Millions 4 3 2 1 0 2012 2017 2022 1.94 1.46 2.88

The basis of manpower calculation for hospital operations is the number of beds in a hospital, the norms have been derived from Hospital Infonet [73]. The growth rate in terms of beds added per year is projected to be 5.8%, based on the projections given for infrastructure creation. On the basis of these norms and projections, it has been calculated that a total workforce of 2.8 million would be required in 2022 a 100% increase over 2012 (Figure 60). The manpower distribution across hospital utility services and supporting functions is based on the Aon Hewitts internal analysis and secondary sources and

the distribution is as shown below ( Figure 61). Housekeeping employing the largest number of people while Security employing the lowest. Considering the split across functions, it has been projected that about 2 Mn people would be required for housekeeping in 2022. Also, by 2022, the numbers in Food Department would rise to 0.34 Mn and those in maintenance to about 0.23 Mn and both the functions would see an approximate increase of 0.1 Mn over 2012. As shown in Figure 62, the manpower requirement by 2022 in Laundry, Sterilization and Security would be 0.19 Mn, 0.09 Mn and 0.03 Mn respectively.

1% 3% 7% 8% 12% 60%
3000 26 90 190 2500 20 2000 15 51 108 135 195 143 259 68 179 1500 343 237

100%

80%

40% 69% 20%

1000 1,501 500 1,132

1,990

0% Manpow er Split for Hospitals


Ho usekeeping Fo o d Dept M aintenance Laundary Sterile dept Security

0 2012 Housekeeping Food Department 2017 Maintenance Laundry 2022 Sterilization Dept Security

Figure 62: Manpower Split for Operations in Hospital

Figure 63 : Manpower requirement for Operations in Hospital

Sector

Sector across levels

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Fertilizers

The fertilizer industry in India has played a crucial role in revolutionizing agriculture and sustaining its growth. There has been a significant increase in the demand of fertilizers in last few years. The surge in fertilizers demand and stagnant to modest increase in production has widened the gap between consumption and production causing larger dependence on imports[11]. Such a scenario provides enormous opportunities to fertilizer plants to improve their production capacity and optimize their operations. The fertilizer plants and related utility and off-site facilities operate in high pressure and temperature zones and also handle explosive gases and toxic chemicals. Therefore, maintaining safety and reliability of operation is of utmost importance to avoid any operational disaster[74]. Therefore, a highly skilled workforce is required to handle operations of a fertilizer plant. These operations typically involve aspects such as : Handling equipment, instrumentation and Safety Systems, optimal use of resources, Optimizing inspections and productivity and plant maintenance etc.

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Figure 64: Consolidated Manpower Demand Fertilizer Operations
Thousands 100 85.0 80 60 41.0 40 20 0 2012 2017 2022 59.0

A report by Department of fertilizers pegged the manpower employed in the sector in 2005 at 32,600, and the projections have been done basis these numbers [75]. The growth rate for fertilizers industry is projected to be 7.5%, basis projection for fertilizer in infrastructure construction and maintenance. Given these norms and projections, a total workforce of 85,000 would be required in 2022 (Figure 63). The manpower required across levels for operations and maintenance of fertilizer plants is based on Aon Hewitts internal analysis and secondary sources [76]. The current manpower split across operational levels are shown in Figure 64.

Considering this split, it has been projected that about 850 people would be required at the senior level in 2022. At middle management level, workforce requirement of around 2500 has been estimated as per analysis, a total of 17,000 people would be required in 2022 at the junior management level, while the Staff requirement would be around 20,000. Its has also been calculated that for the operations of fertilizer plants, a total of 44,000 workmen would be required in 2022. (Figure 65)

20% 80% 24%

90 80 70 60 50

60%

40% 52% 20%

40 30 20 10

0% Manpow er Split for Fertilizer Sector


Wo rkmen Staff Jr M gmt M id M gmt Sr M gmt

0 2012 2017 2022

Workmen

Staff

Figure 65: Manpower Split for Operations in Fertilizer

Figure 66 : Manpower requirement for Operations in

Sector

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Tho

100%

1%

d usan

3%
s

3 0.8 17 2 0.6 12 1 0.4 8 10 21 31 14 44

20

Jr Management

Middle Management

Sr Management

Fertilizer Plants across levels

SEZ and Industrial Infrastructure

State Governments in India are taking several initiatives to modernize infrastructure facilities and to create growth centers within the states. Sector-specific and multi-product industrial parks and SEZs (Special Economic Zones) have been recognized as instruments of fostering industrial growth. While such parks are being set up at a rapid pace, their sustainability has become an important area of concern for the states. Therefore, engaging skilled manpower in handling their operations (across both processing and non-processing areas) is being deemed as vital to longterm industrial growth. The average manpower required for operations and maintenance of SEZ and Industrial Infrastructure sector has been estimated on the basis of norms derived from Aon Hewitts primary research ( Interview with an SEZ and Industrial park operator). SEZs and Industrial parks of varying industries have been considered in drawing the norms. Based on this, it has been estimated that a

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SEZ and Industrial Infrastructure - Operations


Figure 67: Consolidated Manpower Demand SEZ and Industrial Operations
9 8 7 6 5 4 3 2 1 0
Millions

8.3 7.5 6.7

2012

2017

2022

total workforce of 8.3 Mn would be required in 2022 by the sector an addition of 1.6 Mn people over 2012 (Figure 66). It must be noted here that in case of SEZ and Industrial Infrastructure sector, Senior Management is typically the only set of employees that are in-house; the remaining workforce required for daily operations is largely outsourced. This aspect has been taken into consideration, and operational manpower accounts for outsourced jobs. The manpower required across levels for SEZ and Industrial operations is based on Aon Hewitts internal analysis. The current manpower split across operational levels is shown in Figure 67.
M illio ns

Based on calculations, it is projected that in 2022, around 0.12 Mn personnel would be required at senior and middle management level in the operations of SEZ and Industrial Infrastructure. The supervisory level, is estimated to employ 0.3 Mn in 2022. The bulk of manpower required for the sub-sector is primarily at the workmen level, i.e. 7.7 Mn in 2022. ( Figure 68)

0.1 0.1 0.3 0.1 0.3

100%

1.5% 1.5% 3.7%

8 7 6 5 4 7.0 0.1 0.1 0.2 0.1

7.7

93.3%

3 2 1

6.2

80% Manpow er Split for SEZs and Industrial Infra


Wo rkmen Superviso rs M id M gmt Sr M gmt

0 201 2 Wo rkmen Superviso r 201 7 M id M gmt 2022 Sr M gmt

Figure 68: Manpower Split for Operations in SEZ and

Industrial Sector

Figure 69 : Manpower requirement for Operations in SEZ and Industrial Sector across levels

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Conclusions and Recommendations

Conclusion and Recommendations

With the current (2010) requirement of 6.4 Mn trained/certified blue collared workers and only 1.28 Mn available in the Infrastructure sector, it is imperative for the government to focus on skill development for the sector. With skill training in the infrastructure sector having being ignored by ITI/ITCs, the skill crunch is already being felt by the industry impacting infrastructure development in India. The requirements for skilled / semi-skilled labour is bound to increase in the future, with a need of 37.6 Mn in 2022,. This demand being almost thirty times the current levels. To approach skill development in India, a strategic approach to the initiative is the need of the hour. NSDC has been setup with a primary objective of enhancing, supporting and coordinating private sector initiatives for skill development for various industries. But, the finding of the report recommend that special focus be given to the infrastructure sector skill development. Due to the unorganized nature of the sector, it is essential to formalize the sector in terms of employment, skills requirements, benefits among other. With NSDC being the primary body for skills development in the country, it needs to establish the Sector Skills Council (SSC) for the infrastructure sector with the involvement of Government, Industry and Academia. Building on the SSC, NSDC must ensure construction skills be benchmarked and critical skills requiring certification and assessment established. With skills mapped and industry requirements known, a central repository to source talent can be created for the industry in the form of National Construction institute. NSDCs role, would not involve day to day operations for any of the entities, instead it would oversee the management of various initiatives, stakeholders and sources of funding.

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Conclusion and Recommendations

Figure 70: Recommendations for NSDC

Recommendations

Figure 71: Proposed Linkages between recommendations and NSDC

Government

NSDC

Industry

Academia Industry Value Proposition

Construction Sector Skills Council

Assessment & Certification

National Construction Institute

Industry Ready Talent

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Conclusion and Recommendations

Recommendations

Setting up of a Sector Skill Council for Construction


To form the Sector Skills Council (SSC) for construction and infrastructure, an integrated effort from the Government, NSDC, Industry and Academia is required. Representation from the four areas and Subject matter Expert on the Advisory Committee of the SSC would aid in effective functioning of the council and provide comprehensive stakeholder participation. SSC for construction and infrastructure should aim to provide employer leadership for strategic targeted action to meet the sector's skills and business needs. The primary focus of the council in the short term should be to prepare an exhaustive skills directory for the sector with a view of measuring and assessing the skills. The long term objective for the council should be: Lead the drive to boost skills and workforce development in the sector and through this to improve productivity, business growth & employment Build unrivalled intelligence & analysis about the skills need of the sector, professionally communicated in a way that leads to a real change in the workplace & supply of skills linked to changing & future requirements Directly influence the planning & funding of education & training across India, working within the distinctive arrangements in each nation Forge strong links between employers, schools, colleges, training providers & higher education to influence the decisions of young people & adults who are not yet part of the workforce Develop convincing evidence and share best practice to promote the business case for skills investment and the more effective use of people in the workforce Be run and owned by employers and draw on the expertise and active involvement of trade unions, professional bodies & other stakeholders in the sector
Source: - http://www.skillset.org/skillset/role/sector_skills_councils/

135

Conclusion and Recommendations

Recommendations

Assessment and Certification


Analyzing the supply of workforce to the Indian infrastructure, it was determined that only 4% of the total workforce employed by this industry today, has any formal training. Further, looking at the government training institutes (ITIs and ITCs) it was established that these institutes lacked capacity and could train only 0.74 Mn candidates suitable for construction, whereas the demand is much higher. Moreover, to cater to the skill gap left by ITI/ITCs, a number of agencies and private companies run ad hoc training programs that lack common ground or training techniques. Also, these training programs are not recognized by the industry or the government, hence hold no value for the candidates who attends them. Based on the analysis carried out the top five trades required by the industry for sustaining its current growth are not trained or licensed. With Supervisors/Foreman and Technical/Engineer in high demand, certification and licensing of trades is necessary. All developed countries (Australia, Canada and UK) encourage licensing of critical trades like Masons, Electricians, Plumbers, Foremen among others. Through the process of assessment and certification, quality and safety of work carried out can also be guaranteed. Moreover, this would encourage such skills being recognized as specialized and help the blue collared labour force earn better wages in the long run. Furthermore, this would provide an opportunity for career development in the construction field. Therefore, there is an urgent need of an industry accepted assessment and certification framework. This curriculum, combined with a robust skills matrix can form the basis of courses and training programs, which are universally accepted and run by government or private bodies. One of the certifications mandatory for all participating tradesman can be of workplace and site safety, this will considerably reduce accidents at construction sites

135

Conclusion and Recommendations

Recommendations

Develop Industry Value Proposition


A value proposition for the construction and infrastructure is necessary for it to attract talent and investment from across the country and overseas. It would also help the sectors differentiate itself as a destination of choice for employment and investment . At the moment, the sector figures as employment by necessity rather than choice. To build a value proposition for the industry, it is imperative to establish the talent landscape, infrastructure, business environment and supporting services. With the talent landscape having being established through the current study, there is need to analyze the current business environment, infrastructure, and support service. A cumulative analysis on the aforesaid areas would help institute a value proposition for the sector outlining the SWOT (Strength, Weakness, Opportunity and Threat) for the sector, thereby assisting in attracting investments in the areas required. The onus for developing a value proposition for the sector would lay with Industry and SSC assisted by NSDC.

Recommendations

Establishing a National Construction Institute


In order to grow, the industry needs access to talent that is job ready talent that needs minimal or no training when recruited for a particular role. There is a need to create this pool of talent across various job levels and across the construction / infrastructure value chain. To meet the demand for talent in the future, all the involved stakeholders corporate, industry associations, government, and academia must work together towards a common strategic objective. The need of the hour is to create a mechanism involving all stakeholders that ensures an ecosystem geared towards a steady pipeline of talent (both quality and quantity) for the construction / infrastructure industry through sustainable initiatives. In order to meet the strategic objective and to implement a talent development roadmap in a coherent manner, it is necessary to have a central nodal agency under purview of NSDC. The nodal agency, called the National Construction Institute (NCI) will be an apex body at the national level for all training, research, skills development programs, including curriculum development and other academic pursuits related to the construction / infrastructure Industry. The NCI will have regional and state level spread, covering not only manpower for construction but for services, logistics, sourcing, driver training and other related activities which have a bearing on the construction / infrastructure industry.

135

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140

Annexure I : Job Trade Definition

Defining Job trades


During the course of the study, Aon Hewitt empanelled a number of experts who helped create manning norms for the 24 infrastructure sub sectors covered in the report. It was observed that most of these job trades, though with different nomenclature had an overlap in terms of work. Therefore, in order to provide structure and organize the report, Aon Hewitt has classified similar job roles under three categories skilled, unskilled and semi skilled. Here the skilled category would be a skilled tradesman with 4-5 years of industry experience while a semi skilled tradesman would also be involved in similar work as that of a skilled labor such as a mason, carpenter etc. but will be in an apprentice and would the learn the craft as an assistant to a senior/skilled craftsman such as a mason or a carpenter.

For the infrastructure industry in India, one of the most common industry standards accepted are the CPWD norms . Many of the job trades mentioned in these norms are differentiated at skill level such as Mason (1st Class, 2nd Class etc.), these have been covered by our report simply in the form of Skilled or Semi Skilled Masons. Further, those job trades which are not classified this way are mapped to our job trades as follows : Table 40: Mapping for Job Trades
Job trade Beldar Mate Mistry Rock Hole Driller Stone Chissler Role/Function Male Unskilled Worker Lower Level (Labor) Supervisor Any skilled labor Some who drills holes in rocks Forms shapes by chiseling stones For horticulture work at gardens and parks Someone who does crude ordinary paint jobs For scaffolding purposes Watering Surfaces For safety and security Unskilled lady worker For showing light at difficult circumstances Mapped to Unskilled Unskilled Skilled job trade Machine operator Unskilled

Sprayer

Unskilled

White Washer

Painter

Bandhani Bhisti Chowkidar Coolie

Unskilled Unskilled Unskilled Unskilled

Torch operator

Unskilled

Store Keeper

One who takes cares of the store

Unskilled

141

Architect/Designer
An architect is a person trained in the planning, design and oversight of the construction of buildings, and is licensed to practice architecture.

Carpenter
A carpenter is a skilled craftsman who performs carpentry. The work would mainly involve working with wood to construct, install and maintain building infrastructure.

Draftsman Plumber
A draftsman translates a designer's ideas into a finished picture using drawing and drafting skills. A plumber is a tradesperson who specializes in installing and maintaining systems used for potable (drinking) water, sewage, and drainage

Supervisor/Foreman
A supervisor/foreman in the infrastructure space is considered a person of trust. He is usually a skilled laborer with 8-10 years of experience and is largely responsible for onsite management of construction. His responsibilities include onsite people management, coordination with business owner and to provide timely updates. He is also responsible for quality cost and safety of construction activities.

Fitter/Rigger

A fitter is a tradesperson, who fits various kinds of pipes and fittings. These fittings may vary from residential washroom fittings to industrial heavy duty pipes.

Electrician
An electrician is a tradesman who specializes in electrical wiring of buildings, stationary machines and related equipment. Electricians may be employed in the installation of new electrical components or the maintenance and repair of existing electrical infrastructure

Surveyor
Surveyors are individuals who use elements of surveying (tools and techniques) to accurately determine the terrestrial or three dimensional position of points. The surveyor provides data of the lay of the land to the architect and the onsite engineer.

Bar Binder / Bender

Mason

A bar binder is a tradesman who is involved in cutting and binding reinforcement steel for RCC work in building and infrastructure, bridges, tower foundations among other civil works.

Masons are individuals who are involved in masonry work i.e. building structures from individual units (bricks) laid in and bound together by mortar.

142

Blacksmith

Painter

A blacksmith is a person who creates objects from iron or steel by forging the metal, by using tools to hammer, bend, and cut. Blacksmiths produce objects such as wrought iron gates, grills, railings, light fixtures, furniture, sculpture, tools, agricultural implements, decorative and religious items, cooking utensils, horseshoes and weapons.

A painter is a tradesman who applies paint, stain, varnish, and other finishes to buildings and other structures. The purpose of employing a painter may be to make buildings look better or for protection from water, rust, corrosion etc.

Glazier

Welder/Gas Cutter

A glazier is a construction professional who selects, cuts, installs, replaces, and removes residential, commercial, and artistic glass. Glaziers also install aluminum storefront frames and entrances, glass handrails and balustrades, shower enclosures, curtain wall framing and glass and mirror walls.

A welder is a tradesman who specializes in welding materials together. The materials to be joined can be metals or varieties of plastic or polymer.

Machine Operator Unskilled


With the advent and advancement of technologies in the infrastructure industry , a number of machines have replaced or added value to manual work done by labor. In order to run the machines specific skills are demanded by the industry. The manpower which caters to this demand which owing to their ability to run these machines will be classified as machine operators. An unskilled laborer generally does mechanical/manual work which does not require any specific skill set. There laborers are generally assistants to the skilled craftsmen, and are deployed on a 4:1 ratio as a rule of thumb.

Technical / Engineer
An engineer is a professional practitioner of engineering, concerned with applying scientific knowledge, mathematics and ingenuity to develop solutions for technical problems. Engineers design materials, structures, machines and systems while considering the limitations imposed by practicality, safety and cost. Other technical staff who are diploma holders or hold non engineering professional degrees employed for onsite execution are also considered in this trade.

Machine Driver
The process of infrastructure development requires large machines to be deployed and managed across different construction sites. A machine operator is well versed in running the machine but a machine driver is required to actually drive and control some large level controls.

143

Sub-Sector Skill Definition -Transport


Sub-sector
Mason Mason in road construction would primarily be focused on bridge building and cementing of roads Blacksmith Carpenter Plumber Electrician Bar Binder/ Bender Create the basic steel structure for construction of cemented roads and bridges. Painter

N.A

To provide provision for water drainage in bridges and flyovers

Provide provisions for lighting and wiring

Welder

Machine Operator Operate the machines required for road and bridge construction e.g. Cranes, excavators, road rollers Erection Gang N.A

Machine Driver Equipment Drivers, e.g. Cement mixers, transportation of raw material and waste Grinder N.A

Roads and Bridges

N.A

Primarily used in bridges for welding of joints and steel structure

Painting of roads, bridges, sidewalks and signs

Glazier N.A Rigger N.A

Fitter Alignment and installation of bridge structures Gas Cutter N.A

Radiographer N.A

144

Sub-Sector Skill Definition - Transport


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender Will be involved in basic metal binding, moulding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more Painter

Mason will be involved in construction of terminal infrastructure like, Warehouses, Jetties etc.

N.A

Providing basic plumbing facilities for all building infrastructure. Specialized plumbing for constant water drainage from ports and inland waterways Machine Operator

For all electric fittings and wiring in the building infrastructure. Also Installation of equipment

Blacksmith

Welder Used for welding of beams and joints, where required in buildings. Weld equipment, pipes and other associated infrastructure fittings Fitter Carry out sanitary fittings for the infrastructure and other equipment fittings Gas Cutter N.A

Machine Driver

Ports & Inland Waterways

N.A

Operate machines for building construction, i.e. cranes, excavators etc

Equipment Drivers, e.g. Cement mixers, transportation of raw material and waste

Paint infrastructure constructed and maintained

Glazier

Erection Gang

Grinder

Radiographer

N.A

N.A

N.A

N.A

Rigger N.A

145

Sub-Sector Skill Definition - Transport


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender Will be involved in basic metal binding, moulding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more Painter

Manson will carry out masonry work, i.e. brick laying, plastering, cementing etc for construction of buildings

For basic shuttering to support building infra as well as skilled carpenters for construction of building doors and windows

Providing basic plumbing facilities for all building infrastructure, i.e. installation water inlet and outlets, sewage outlet etc.

For all electric fittings and wiring in the building infrastructure. Also Installation of equipment

Blacksmith

Welder Used for welding of beams and joints, where required in buildings. Weld equipment, pipes and other associated infrastructure fittings Fitter

Machine Operator

Machine Driver

Airports

N.A

Operate machines for building construction, i.e. cranes, excavators etc

Equipment Drivers, e.g. Cement mixers, transportation of raw material and waste

Paint infrastructure constructed and maintained

Glazier Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass Rigger N.A

Erection Gang

Grinder

Radiographer

Carry out sanitary fittings for the infrastructure and other equipment fittings

N.A

N.A

N.A

Gas Cutter N.A

146

Sub-Sector Skill Definition - Transport


Sub-sector
Mason Carpenter Plumber Electrician Specialized Railway Electricians for electrification of railway tracks. Also provide electrical wiring for building and associated infrastructure. Installation of equipment Machine Driver Equipment Drivers, e.g. Cement mixers, transportation of raw material and waste Grinder Bar Binder/ Bender Will be involved in basic metal binding, moulding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more Painter

Manson will carry out masonry work, i.e. brick laying, plastering, cementing etc for construction of buildings Blacksmith

For basic shuttering to support building infra as well as skilled carpenters for construction of building doors and windows Welder Used for welding of beams and joints, where required in buildings. Weld tracks and other associated infrastructure Fitter Align and install metro and railway tracks, equipment, and structures . Carry out sanitary fittings for the infrastructure and other equipment fittings Gas Cutter N.A

Providing basic plumbing facilities for all building infrastructure, i.e. installation of water inlet and outlets, sewage outlet etc. Machine Operator Operate machines for building, railway and metro construction, i.e. cranes, excavators, etc Erection Gang

Railway Track, tunnels, and Metro

Laying of track lines as per requirements Glazier Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass Rigger N.A

Paint infrastructure constructed and maintained Radiographer

N.A

N.A

N.A

147

Sub-Sector Skill Definition - Energy


Sub-sector
Mason Carry out masonry work, i.e. brick laying plastering and cementing for the base of the towers Blacksmith N.A Carpenter Plumber Electrician Bar Binder/ Bender

N.A

N.A

N.A

N.A

Welder N.A Fitter

Machine Operator N.A Erection Gang A team of 15, responsible for construction of the steel tower and laying and connecting the transmission lines

Machine Driver N.A Grinder

Painter N.A Radiographer

Electricity Transmission

Glazier

N.A

N.A

N.A

N.A

Rigger N.A

Gas Cutter N.A

Sub-sector

Mason Carry out masonry work, i.e. brick laying, plastering and cementing etc for the construction of buildings

Carpenter

Plumber

Electrician Specialized electricians for installation of transformers, jumpers, circuit breakers etc. at sub-station Machine Driver N.A Grinder N.A

Bar Binder/ Bender

N.A

N.A

N.A

Electricity Distribution

Blacksmith N.A Glazier N.A Rigger N.A

Welder N.A Fitter N.A Gas Cutter N.A

Machine Operator N.A Erection Gang N.A

Painter N.A Radiographer N.A

148

Sub-Sector Skill Definition - Energy


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender Will be involved in basic metal binding, moulding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more Painter

Carry out masonry work, i.e. brick laying plastering etc for the construction of buildings

For basic shuttering to support building infra as well as skilled carpenters for construction of building doors and windows

Specialized Plumbing experienced in power generation plumbing. Provide extensive water circulation mechanisms and controls

Specialized electricians for installation of transformers, jumpers, circuit breakers etc. at the plant

Blacksmith

Welder Used for welding of beams and joints, where required in buildings. Weld equipment, pipes and other associated infrastructure fittings Fitter Align and install power generation equipment, and structures . Carry out sanitary fittings for the infrastructure and other equipment fittings Gas Cutter Cut through equipment using gas cutting with precision and ensure proper installation and functioning

Machine Operator

Machine Driver

N.A

Electricity Generation
Glazier Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass Rigger help operate machines that move heavy objects and the heavy construction equipment used to build and take down steel structures.

Operate machines for building construction and equipment installation, i.e. cranes, excavators etc

Equipment Drivers, e.g. Cement mixers, transportation of raw material and waste

Paint equipment and infrastructure as per industry norms

Erection Gang

Grinder

Radiographer

N.A

Carry out grinding of machines and equipment to ensure proper installation and fitting

N.A

149

Sub-Sector Skill Definition - Energy


Sub-sector
Mason N.A Blacksmith Carpenter N.A Welder Specialist welder for welding pipeline joints with precision Fitter Alignment and installation of pipelines Gas Cutter Plumber N.A Machine Operator Operate machines for lifting of pipes and excavation (where required) Erection Gang Electrician N.A Machine Driver Bar Binder/ Bender N.A Painter

N.A

N.A

Painting of Pipelines

Oil & Gas Pipeline

Glazier

Grinder

Radiographer

N.A

N.A

N.A

N.A

Rigger

N.A

N.A

Sub-sector

Mason Carry out masonry work, i.e. brick laying plastering etc for the construction of storage tanks Blacksmith

Carpenter

Plumber

Electrician

Bar Binder/ Bender Create steel structure of storage tanks as per design norms for stability Painter

NAN

N.A

N.A

Welder Specialist welder for welding metal plate joints with precision Fitter

Machine Operator Operate machines for lifting of heavy material and excavation (where required) Erection Gang

Machine Driver

Oil / Gas / Liquefied Natural gas Storage Facility

N.A

N.A

N.A

Glazier

Grinder Carry out grinding of equipment / metal plates to ensure proper installation and fitting

Radiographer Scan storage tanks using x-ray based machines for micro cracks in the structure

N.A

Alignment and installation of equipment

N.A

Rigger N.A

Gas Cutter N.A

150

Sub-Sector Skill Definition - Energy


Sub-sector
Mason Carpenter For basic shuttering to support building infra as well as skilled carpenters for construction of building doors and windows Welder Weld beams and joints, where required in buildings. Specialist welder for welding metal plate joints with precision for storage tanks Fitter Plumber Electrician Bar Binder/ Bender

Carry out masonry work, i.e. brick laying plastering etc for the construction of buildings

Providing basic plumbing facilities for all building infrastructure, i.e. installation of water inlet and outlets, sewage outlet etc. Machine Operator

For all electric fittings and wiring in the building infrastructure. Also Installation of equipment

N.A

Blacksmith

Machine Driver

Painter

N.A

Petrol Stations
Glazier Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass Rigger

Operate machines for building construction and equipment installation, i.e. cranes, excavators etc

Equipment Drivers, ,e.g. Cement mixers, transportation of raw material and waste

Painting of Pipelines

Erection Gang

Grinder

Radiographer

Carry out sanitary fittings for the infrastructure and other equipment fittings

N.A

Carry out grinding of equipment / metal plates to ensure proper installation and fitting

N.A

Gas Cutter

N.A

N.A

151

Sub-Sector Skill Definition - Water & Sanitation


Sub-sector
Mason Carpenter Plumber Specialized Plumbing experienced in sewage treatment plumbing. Provide extensive water transfer mechanisms and controls for treatment of sewage Machine Operator Electrician Bar Binder/ Bender Will be involved in basic metal binding, moulding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more Painter

Carry out masonry work, i.e. brick laying plastering etc for the construction of buildings

For basic shuttering to support building infra as well as skilled carpenters for construction of building doors and windows

For all electric fittings and wiring in the building infrastructure . Electrical fixtures and cables for heavy machinery

Blacksmith

Welder Used for welding of beams and joints, where required in buildings. Weld equipment, pipes and other associated infrastructure fittings Fitter Align and install Waste treatment plant equipment, and structures . Carry out sanitary fittings for the infrastructure and other equipment fittings Gas Cutter

Machine Driver

N.A

Operate machines for building construction and equipment installation, i.e. cranes, excavators etc

Equipment Drivers, ,e.g. Cement mixers, transportation of raw material and waste

Paint equipment and infrastructure as per industry norms

Solid Waste Management

Glazier Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass Rigger Help operate machines that move heavy objects and the heavy construction equipment used to build and take down steel structures.

Erection Gang

Grinder

Radiographer

N.A

Carry out grinding of machines and equipment to ensure proper installation and fitting

N.A

Cut through equipment using gas cutting with precision and ensure proper installation and functioning

152

Sub-Sector Skill Definition - Water and Sanitation


Sub-sector
Mason Carry out masonry work, for erection of pipes, i.e. pillar erection and surface preparation to install pipeline Blacksmith Carpenter Plumber Electrician Bar Binder/ Bender

N.A

N.A

N.A

N.A

Welder Specialist welder for welding pipeline joints with precision Fitter Alignment and installation of pipelines Gas Cutter N.A

Machine Operator Operate machines for lifting of pipes and excavation (where required) Erection Gang N.A

Machine Driver

Painter

Water Supply Pipelines

N.A

N.A

N.A

Glazier N.A Rigger N.A

Grinder N.A

Radiographer N.A

Sub-sector

Mason Carry out masonry work, for erection of pipes, i.e. pillar erection and surface preparation to install pipeline Blacksmith

Carpenter

Plumber

Electrician

Bar Binder/ Bender

N.A

N.A

N.A

N.A

Welder Specialist welder for welding pipeline joints with precision Fitter Alignment and installation of pipelines Gas Cutter N.A

Machine Operator Operate machines for lifting of pipes and excavation (where required) Erection Gang N.A

Machine Driver

Painter

Sewerage Pipelines

N.A

N.A

N.A

Glazier N.A Rigger N.A

Grinder N.A

Radiographer N.A

153

Sub-Sector Skill Definition - Water and Sanitation


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender Will be involved in basic metal binding, moulding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more Painter

Carry out masonry work, i.e. brick laying plastering etc for the construction of buildings

For basic shuttering to support building infra as well as skilled carpenters for construction of building doors and windows

Specialized Plumbing experienced in water treatment plumbing. Provide extensive water circulation, transfer mechanisms and controls

For all electric fittings and wiring in the building infrastructure . Electrical fixtures and cables for heavy machinery

Blacksmith

Welder Used for welding of beams and joints, where required in buildings. Weld equipment, pipes and other associated infrastructure fittings Fitter Align and install power generation equipment, and structures . Carry out sanitary fittings for the infrastructure and other equipment fittings Gas Cutter Cut through equipment using gas cutting with precision and ensure proper installation and functioning

Machine Operator

Machine Driver

N.A

Water Treatment Plant

Operate machines for building construction and equipment installation, i.e. cranes, excavators etc

Equipment Drivers, e.g. Cement mixers, transportation of raw material and waste

Paint equipment and infrastructure as per industry norms

Glazier Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass Rigger help operate machines that move heavy objects and the heavy construction equipment used to build and take down steel structures.

Erection Gang

Grinder

Radiographer

N.A

Carry out grinding of machines and equipment to ensure proper installation and fitting

N.A

154

Sub-Sector Skill Definition - Water and Sanitation


Sub-sector
Mason Carry out masonry work, i.e. brick laying plastering etc for canal systems and check dams Blacksmith Carpenter For basic shuttering to support building infra. Around canals and check dams Welder Plumber Electrician Bar Binder/ Bender

N.A

N.A

N.A

Irrigation (dams, channels, embankments etc.)

Machine Operator

Machine Driver Equipment Drivers, e.g. Cement mixers, transportation of raw material and waste Grinder N.A

Painter

N.A

N.A

N.A

N.A

Glazier N.A Rigger N.A

Fitter N.A Gas Cutter N.A

Erection Gang N.A

Radiographer N.A

Sub-sector

Mason Carry out masonry work, i.e. brick laying plastering etc for the construction of storm water drains or prepare surface to lay prefabricated slabs and ensure their alignment and joining Blacksmith

Carpenter

Plumber

Electrician

Bar Binder/ Bender

N.A

N.A

N.A

N.A

Storm Water Drainage System

Welder

Machine Operator Operate machines for lifting of prefabricated slabs and excavation (where required) Erection Gang

Machine Driver

Painter

N.A

N.A

N.A

N.A

Glazier

Fitter Alignment and installation of slabs along with mason Gas Cutter N.A

Grinder

Radiographer

N.A

N.A

N.A

N.A

Rigger N.A

155

Sub-Sector Skill Definition - Social and Commercial Infrastructure


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender

Mason would be involved in all brick and cement work, for constructing buildings of schools., educational institutes etc.

For basic shuttering and scaffolding work during construction . Further, making of doors, windows, chairs etc.

Providing basic plumbing facilities for all building infrastructure

For all electric fittings and wiring in the building infrastructure

Will be involved in basic metal binding, mouilding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more
Painter

Blacksmith

Welder

Machine Operator

Machine Driver

Education Institutions (capital stock)

N.A

N.A

Operating heavy machinery for construction purposes. For example excavation machinery and cranes for digging basements
Erection Gang

Equipment Drivers,eg Cement mixers, transportation of raw material and waste

Painting of walls, windows and doors of the buildings. Polishing and painting of chairs, carpenters etc

Glazier

Fitter

Grinder

Radiographer

Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass
Rigger N.A

Alignment and installation of plumbing pipes

N.A

N.A

N.A

Gas Cutter N.A

156

Sub-Sector Skill Definition - Social and Commercial Infrastructure


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender

Mason would be involved in all brick and cement work, for constructing buildings of hospitals etc

For basic shuttering and scaffolding work during construction . Further, making of doors, windows, chairs etc.

Providing basic plumbing facilities for all building infrastructure

For all electric fittings and wiring in the building infrastructure

Will be involved in basic metal binding, mouilding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more
Painter

Blacksmith

Welder

Machine Operator

Machine Driver

Hospitals (capital stock)

N.A

N.A

Operating heavy machinery for construction purposes. For example excavation machinery and cranes for digging basements
Erection Gang

Equipment Drivers,eg Cement mixers, transportation of raw material and waste

Painting of walls, windows and doors of the buildings. Polishing and painting of chairs, carpenters etc

Glazier

Fitter

Grinder

Radiographer

Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass
Rigger N.A

Alignment and installation of plumbing pipes. Also fitting pipes for waste disposal

N.A

N.A

N.A

Gas Cutter N.A

157

Sub-Sector Skill Definition - Social and Commercial Infrastructure


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender

Mason would be involved in all brick and cement work, for all industrial infrastructure. Also, in tourism, mason would be involved in artistic masonry work on walls, tourism destination etc.
Blacksmith

For basic shuttering and scaffolding work during construction . Further, making of doors, windows, chairs etc.

Providing basic plumbing facilities for all building infrastructure . Also provide plumbing for water drainage etc. within the SEZ roads

For all electric fittings and wiring in the building infrastructure. Further, look at inter SEZ electrical connections for transmission etc.

Will be involved in basic metal binding, mouilding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more
Painter

Welder

Machine Operator

Machine Driver

Common infrastructure for industrial parks, SEZ and tourism facilities

N.A

The use of welding will be limited to fixing and installing heavy machinery

Operating heavy machinery for construction purposes of all building infrastructure. Machine used in constructing internal roads and lanes etc. Finally, any machines used in handling and installing heavy machinery
Erection Gang

Equipment Drivers,eg Cement mixers, transportation of raw material and waste

Painting of walls, windows and doors of the buildings. Using rust protective paint wherever needed. Painting Internal signs for navigation within the SEZ area

Glazier

Fitter

Grinder

Radiographer

Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass
Rigger N.A

Alignment and installation of plumbing pipes.

N.A

N.A

N.A

Gas Cutter N.A

158

Sub-Sector Skill Definition - Social and Commercial Infrastructure


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender

Mason would be involved in all brick and cement work for construction of factories, inventory structures etc

For basic shuttering and scaffolding work during construction . Further, making of doors, windows, chairs etc.

Providing basic plumbing facilities for all building infrastructure. Further, providing pipes and drainage facilities within the buildings as per the supply chain plan

For all electric fittings and wiring in the building infrastructure

Will be involved in basic metal binding, mouilding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement strcuture to strengthen it even more
Painter

Blacksmith

Welder

Machine Operator

Machine Driver

Fertilizer (Capital investment)

N.A

The use of welding will be limited to fixing and installing heavy machinery

Operating heavy machinery for construction purposes of all building infrastructure. Machine used in constructing internal roads and lanes etc. Finally, any machines used in handling and installing heavy machinery
Erection Gang

Equipment Drivers,eg Cement mixers, transportation of raw material and waste

Painting of walls, windows and doors of the buildings. Using rust protective paint wherever needed.

Glazier

Fitter

Grinder

Radiographer

Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass
Rigger N.A

Alignment and installation of plumbing pipes. Also, installing any pipes needed as part of the supply chain infrastructure

N.A

N.A

N.A

Gas Cutter N.A

159

Sub-Sector Skill Definition - Social and Commercial Infrastructure


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender

Masons would be involved in brick and cement work for construction of warehouse and cold chain infrastructure

For basic shuttering and scaffolding work during construction . Further, making of doors, windows, chairs etc.

Providing basic plumbing facilities for all building infrastructure. Further, provide drainage for waste water dripping out of stored and washed food grains, fruits and vegetables
Machine Operator

For all electric fittings and wiring in the building infrastructure . Electrical fixtures and cables for heavy machinery

Will be involved in basic metal binding, mouilding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more
Painter

Blacksmith

Welder

Machine Driver

Post-harvest storage infrastructure for agriculture and horticultural produce including cold storage

N.A

The use of welding will be limited to fixing and installing heavy machinery

Operating heavy machinery for construction purposes of all building infrastructure. Machine used in constructing internal roads and lanes etc. Finally, any machines used in handling and installing heavy machinery
Erection Gang

Equipment Drivers,eg Cement mixers, transportation of raw material and waste

Painting of walls, windows and doors of the buildings. Using rust protective paint wherever needed.

Glazier

Fitter

Grinder

Radiographer

Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass
Rigger N.A

Alignment and installation of plumbing pipes. Also, installing any pipes needed as part of the supply chain infrastructure

N.A

N.A

N.A

Gas Cutter N.A

160

Sub-Sector Skill Definition - Social and Commercial Infrastructure


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender

Masons would be involved in brick and cement work for construction of warehouse and cold chain infrastructure

For basic shuttering and scaffolding work during construction . Further, making of doors, windows, chairs etc.

Providing basic plumbing facilities for all building infrastructure . Also provide plumbing for inter building processing of fruits and vegetables, waste water disposal etc
Machine Operator

For all electric fittings and wiring in the building infrastructure . Electrical fixtures and cables for heavy machinery

Will be involved in basic metal binding, mouilding etc. to support the brick and cement work internally. The metal/ Iron rods are inserted within the cement structure to strengthen it even more
Painter

Blacksmith

Welder

Machine Driver

Cold chain

N.A

The use of welding will be limited to fixing and installing heavy machinery

Operating heavy machinery for construction purposes of all building infrastructure. Machine used in constructing internal roads and lanes etc. Finally, any machines used in handling and installing heavy machinery
Erection Gang

Equipment Drivers,eg Cement mixers, transportation of raw material and waste

Painting of walls, windows and doors of the buildings. Using rust protective paint wherever needed. Signage within the cold chain/ storage area

Glazier

Fitter

Grinder

Radiographer

Glazier selects, cuts, installs glass screens in building infrastructure. They also install aluminum storefront frames and entrances, glass
Rigger N.A

Alignment and installation of plumbing pipes. Also, installing any pipes needed as part of the supply chain infrastructure

N.A

N.A

N.A

Gas Cutter N.A

161

Sub-Sector Skill Definition - Communication Infrastructure


Sub-sector
Mason Carpenter Plumber Electrician Bar Binder/ Bender

Mason in this sector will primarily be involved in constructing cement base for towers

For basic shuttering and scaffolding, to support building infra. Around the tower

For lavatory facilities around the supporting infrastructure for telecom towers . Also used for managing plumbing lines during cable laying
Machine Operator

To make the final electrical connection after a communication tower has been erected

Will work with the mason dominantly, to create the basic steel structure for the tower base

Blacksmith

Welder

Machine Driver

Painter

Telecommunicat ions (Broadband and Towers)

Alternatively, used as tower erectors. Pre dominantly involved in creating the steel framework for erection of towers

N.A

Operating heavy machines, mainly in digging/excavati ng for cable laying and erecting towers. Eg. Rock breaking and excavating machines
Erection Gang N.A

Machine drivers primarily utilized for lifting waste/broken rocks in cable laying

To paint signs for cable laying. Further, used to paint the tower base with protective paints etc.

Glazier N.A Rigger N.A

Fitter N.A Gas Cutter N.A

Grinder N.A

Radiographer N.A

162

Regional Imbalances
One of the primary aims, for the government today, is to encourage inclusive growth across all states. In order to accomplish the same, it is important to keep in mind the supply and demand of labor across different regions. Therefore, skill development initiatives should be designed, keeping in account the regional imbalances.

Aon Hewitt, in its analysis discovered that informally, most of the blue collared labor gets sourced from the states of Bihar, Rajasthan, UP, and Chattisgarh in the northern sub continent. Andhra Pradesh occupies the same position in south.

The labor demand estimates, especially for roads, SEZs (industrial area) and energy projects, were analyzed. The analysis helped us shortlist the top five skills required for all the Indian states (refer table below). Also, It was observed that masons and machine operators are the top two trades that are in demand for every state.

It has been already established, that the only source of formal training, for the infrastructure industry, is through ITIs and in-house industry training programs. Analyzing the share of blue collared workforce catering to the construction sector (refer table below ), it was observed that Andhra Pradesh, Rajasthan, Uttarakhand, and Madhya Prasesh train the maximum workforce for this sector.

163

Demand Side Analysis

States

Top Five Skills

Masons

Electrical

Carpenter

Plumber

Welder

Bar Binder

Painter

Fitter

Machine operator

Glazier

Andhra Pradesh Assam Bihar Chhattisgarh Goa Gujarat Haryana Jammu and Kashmir Jharkhand Karnataka Kerala Madhya Pradesh Maharashtra Orissa Punjab Rajasthan Tamil Nadu Tripura Uttar Pradesh Uttarakhand West Bengal Chandigarh Dadra and Nagar Haveli Daman and Diu Lakshadweep National Capital Territory of Delhi

164

Supply Side Analysis


6% 2% 2% 1% 14%

10%

1% 2%

3% 10% 4% 5% 3% 1% 1% 1% 13% 3% 8% 9%

Andhra Pradesh Chhattisgarh Him achal Pradesh Karnataka Maharashtra Rajasthan Uttarakhand

Assam Gujarat Jam m u and Kashm ir Kerala Orissa Tam il Nadu West Bengal

Bihar Haryana Jharkhand Madhya Pradesh Punjab Uttar Pradesh National Capital Territory of Delhi

During our study it was observed that apart from the ITI/ITC, a number of companies, have started training blue collared workforce internally * . For example, L&T has set up Construction Skill Training Institute at Chennai to brush up the skills of field workers such as masons, plumbers, bar-benders, carpenters, fitters, welders, turners, wiremen and electricians**. It was observed, that percentage share of labor workforce trained by a state, is influenced by the size of the state and the respective state government, and is not in sync with the labor demand of that state. Further, it was also observed that the skill development initiatives run on ad hoc basis also have no relation with the regional demand of the state. In order to sustain Indias aim of achieving inclusive growth, it is imperative that skill development initiatives for training of manpower, be aimed to satisfy regional demand.

* The Economic Times, 2011, Companies take steps to woo blue-collar workforce ** The Hindu ( Business Line), 2011, Cos setting up institutes to train blue-collar workers

165

Annexure 3 : Skill Pyramids

Skill Pyramids for various sectors


While estimating the manpower numbers for various sectors, it was observed that with the advent of new technology and improved methods of construction, the number and ratios of executive, skilled, semi skilled, and unskilled workers, will change across years to come. The numbers for each of the infrastructure sector are expressed in the form of skill pyramids which have been highlighted in this section.

Social and Commercial Infrastructure

Millions 40 35 30 25 20 15 10 5 0 2012 Unskilled 2017 Semi- Skilled Skilled Executive 2022 11.6 2.9 7.1 5.2 4.4 13.6 16.2 3.4 8.3 6.3 4.1 9.8

Transport Infrastructure

Millions 12 0.41 10 0.8 8 6 7.6 4 2 0 2012 Unskilled 2017 Semi- Skilled Skilled Executive 2022 8.1 8.4 0.7 0.32 1.0 1.0 1.3 1.3 0.49

166

Skill Pyramids for various sectors


Energy Infrastructure
Millions

10 1.02 8 3.2 6 0.70 2.2 4 0.48 1.5 2 0.7 2.7 1.9 0 2012 Unskilled 2017 Semi- Skilled Skilled Executive 2022 1.0 4.0 1.5

Communication Infrastructure

Millions 8 1.27 0.08 6 0.35

0.61 0.29 0.15 6.7

0.20 0.11 1.3 0.16

3.4

0 2012 2017 2022

Unskilled

Semi- Skilled

Skilled

Executive

167

Skill Pyramids for various sectors


Water and Sanitation Infrastructure

20

2.5 4.2 1.7 0.2 2.9 1.2 0.1 2.2 0.1 10.0 7.4 14.3

16

12

0 2012 Unskilled 2017 Semi- Skilled Skilled Executive 2022

168

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