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IMPACT STUDY OF THE CONSTRUCTION LABOUR INITIATIVE BY IKP STUDY BY B. RAVI SHANKAR PROJECT MANAGER, SERP.

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Presentation on theme: "IMPACT STUDY OF THE CONSTRUCTION LABOUR INITIATIVE BY IKP STUDY BY B. RAVI SHANKAR PROJECT MANAGER, SERP."— Presentation transcript:

1 IMPACT STUDY OF THE CONSTRUCTION LABOUR INITIATIVE BY IKP STUDY BY B. RAVI SHANKAR PROJECT MANAGER, SERP

2 SIZE AND SCOPE OF THE CONSTRUCTION INDUSTRY Next to agriculture construction sector offers livelihood to maximum number of people Next to agriculture construction sector offers livelihood to maximum number of people Around 3.3 cr persons depend on this sector for their livelihood Around 3.3 cr persons depend on this sector for their livelihood 22 lakhs are from AP alone. 22 lakhs are from AP alone. Sector is growing at 16.87% annually Sector is growing at 16.87% annually Top 35 of the 50 contractors are from AP who constantly need trained and skilled manpower. Top 35 of the 50 contractors are from AP who constantly need trained and skilled manpower.

3 OUR INITIATIVE In spite of the demand for skilled workers by the builders, AP had been supplying only wage labour. In spite of the demand for skilled workers by the builders, AP had been supplying only wage labour. A wage labourers wages is only half that of skilled worker. A wage labourers wages is only half that of skilled worker. The demand for skilled workers from AP is 1,35,000. The demand for skilled workers from AP is 1,35,000. The project has decided to work in skilling the people to earn more wages. The project has decided to work in skilling the people to earn more wages. A tie up with National Academy of Construction has enabled the project to select and train people in masonry, bar bending, plumbing, electrical, centring, construction supervision, land survey trades. A tie up with National Academy of Construction has enabled the project to select and train people in masonry, bar bending, plumbing, electrical, centring, construction supervision, land survey trades. Placement is given to every one trained in these trades. Placement is given to every one trained in these trades.

4 PREMISE The training and placement has been initiated a year back. The training and placement has been initiated a year back. The project feels that this initiative has definitely yielded results. The project feels that this initiative has definitely yielded results. It has picked the following 2 premise to prove the point. It has picked the following 2 premise to prove the point. MS/VOs have a say in the selection of the candidates for trainings and they are participating in the process of selection. MS/VOs have a say in the selection of the candidates for trainings and they are participating in the process of selection. Due to the visible benefits of the construction intervention, the MS has been motivated to send more candidates for such trainings. [ by Focus Group Discussion] Due to the visible benefits of the construction intervention, the MS has been motivated to send more candidates for such trainings. [ by Focus Group Discussion] Due to our intervention in the construction sector- identifying the candidates, training them and placing them- the household, village and mandal have benefited financially and socially. [by Individual questionnaire method] Due to our intervention in the construction sector- identifying the candidates, training them and placing them- the household, village and mandal have benefited financially and socially. [by Individual questionnaire method]

5 METHODOLOGY [1] FOCUS GROUP DISCUSSION – at MMS VO level. [1] FOCUS GROUP DISCUSSION – at MMS VO level. Focus Group Discussion- was conducted with Pulivindula Mandal Samakhya and with Veipula Village Organisation members, Kadapa district. Focus Group Discussion- was conducted with Pulivindula Mandal Samakhya and with Veipula Village Organisation members, Kadapa district. [2] INDIVIDUAL QUESTIONNARE- 25 persons from Pulivindula, Vempally, Vemula mandals. [2] INDIVIDUAL QUESTIONNARE- 25 persons from Pulivindula, Vempally, Vemula mandals.

6 FINDINGS- ANALYSIS The group listed 3 causes that motivated candidates to join this profession- as softer job than what they were usually getting, year round employment and avenue for higher education. The group listed 3 causes that motivated candidates to join this profession- as softer job than what they were usually getting, year round employment and avenue for higher education. Inability of the agriculture sector to offer enough income to them was another reason. Inability of the agriculture sector to offer enough income to them was another reason. Non monitory benefits listed were- high level of awareness about health and healthy living, ability to buy food items on monthly basis, children going to school, alternative education to mature adults to enable them to improve incomes. Non monitory benefits listed were- high level of awareness about health and healthy living, ability to buy food items on monthly basis, children going to school, alternative education to mature adults to enable them to improve incomes. Excluded groups participation was above 30% - reasons sited were improvement in social status, work availability and outlet for them to study further than what is taught at village. Excluded groups participation was above 30% - reasons sited were improvement in social status, work availability and outlet for them to study further than what is taught at village. They chose this sector because of lot of work was available and also they could earn respect in society. They chose this sector because of lot of work was available and also they could earn respect in society. Women would like to join such course provided it was done separately and in electrical and painting trades. Women would like to join such course provided it was done separately and in electrical and painting trades. MMS, VO leaders need to be sensitized more often and participate in selection of candidates at least in the initial stages. MMS, VO leaders need to be sensitized more often and participate in selection of candidates at least in the initial stages.

7 INDIVIDUAL QUESTIONNARES -25 beneficiaries ANALYSIS the poor joined this livelihood for steady income and movement in social ladder the poor joined this livelihood for steady income and movement in social ladder the pop joined because they had no other option in the village. the pop joined because they had no other option in the village. the new addition to the family asset was phone after the employment, most had fans, TV sets, cycle, sewing machine etc. before hand the new addition to the family asset was phone after the employment, most had fans, TV sets, cycle, sewing machine etc. before hand The pop families increased their incomes by 3.28 to 4.75 times after employment The pop families increased their incomes by 3.28 to 4.75 times after employment the poor families increased their incomes by 2.6 to 4 times. the poor families increased their incomes by 2.6 to 4 times. The middle income families income increase between 1.38 to 3.28 times. The middle income families income increase between 1.38 to 3.28 times. The beneficiaries were 38% wage labour, 30% students, 23% farmers and rest petty traders or employed. The beneficiaries were 38% wage labour, 30% students, 23% farmers and rest petty traders or employed. Around 15% started on their own. Around 15% started on their own. Work needs to be done improving the monitoring system of the placed candidates as 11% indicated they receive lower than promised wages, Work needs to be done improving the monitoring system of the placed candidates as 11% indicated they receive lower than promised wages,

8 CONCLUSION The candidates reported enhanced awareness, respect in society, improvement in self-discipline and 2- 4 times improvement in incomes. The candidates reported enhanced awareness, respect in society, improvement in self-discipline and 2- 4 times improvement in incomes. This initiative needs to be broadened to include women to take up skilled labour category and also pick up small contracts. This initiative needs to be broadened to include women to take up skilled labour category and also pick up small contracts. THANK YOU

9 Rational for continuing the program till Dec 2008 and beyond

10 Return over investment Assumptions Assumptions Cost for training and placement = Rs 13,000/- Cost for training and placement = Rs 13,000/- Earnings in the first year = Rs 30,000/- Earnings in the first year = Rs 30,000/- Earning as Wage labourer(40 years) = Rs 11,66,000/- Earning as Wage labourer(40 years) = Rs 11,66,000/- Life time earning as skilled tradesman = Rs 46,00,000/- Life time earning as skilled tradesman = Rs 46,00,000/- (40 years at only 6% annual increment) (40 years at only 6% annual increment) Tax earned from that person = Rs 7, 80,000/- Tax earned from that person = Rs 7, 80,000/- (After 25 years till 40 years) (After 25 years till 40 years) Net present value of the tax earned = Rs 4234/- Net present value of the tax earned = Rs 4234/- Actual cost of training (13000-4234) = Rs 8766/- Actual cost of training (13000-4234) = Rs 8766/- Opportunity cost = Rs 4500/- Opportunity cost = Rs 4500/- (Lost 75 days of wage labour@60/-) (Lost 75 days of wage labour@60/-)

11 ROI-Other benefits Standard of living of the family improves. Standard of living of the family improves. Regular income inflow prompts savings. Regular income inflow prompts savings. Expenditure on health and childrens education. Expenditure on health and childrens education. Village benefits due to money flow. Village benefits due to money flow. Mandal benefits as it gets trained manpower. Mandal benefits as it gets trained manpower. Local skilled labour is cheaper than from outside, MMS/VO can pick up works of their own. Local skilled labour is cheaper than from outside, MMS/VO can pick up works of their own. Disadvantaged groups over a period of time will have higher incomes than others who stick to primary occupation. Disadvantaged groups over a period of time will have higher incomes than others who stick to primary occupation. Unlike other trainings this is a competency training & the control is with the beneficiary. Unlike other trainings this is a competency training & the control is with the beneficiary.

12 Budgets for the extended period Acti vity April 06- March 07 March07 April-08 Ap 08-Dec 08 NumberAmountNumberAmount Numb er Amount Full training 15462,00,98,00025003,25,00,00012501,62,50,000 Skill upgrade 300090,00,000300090,00,000150045,00,000 NewInitiatives15,00,00065,00,00050,00,000 Special initiatives tribal area 60,00,000 3,65,98,0004,80,00,0002,57,50,000

13 Expected revenues for the country & family Type of TrainingTotalTrained By Dec08 Expected Income to each @ each @ each @.46cr.46cr/.23cr.46cr (40yr life span) Expected Benefits in form of Tax (25 th to 40 th year) @.078cr Total to be spent on training & placement (2004- 2008) Full Trg 7496 3448 cr 584.68 cr 9.7 cr Skill Upgrade 9000 2070 cr 702 cr 2.7 cr TOTAL 5518 cr 1286.68 cr 12.4 cr

14 Micro Enterprises-Bricks Frames, Rafters making ActivityUnitCostBenefits Profit due to unit - 10 y 48 units 1100 units AllMandals Days Gener ated WagesProfit Micro enterpr ises.5-1Lakh20002Lakhs 1 lakh 30 lakh 14.4 cr 330 cr 2.2.cr mand ays.

15 LEASING OF CENTERING EQUIPMENT ActivityUnitCost 1 unit / 1 yr 48 units/ 10 yr 400 units 10yr wages Perso n day ProfitProfit Perso n days Lease miller & other equip. 1 lakh 1.8 lakh 1800 3 lakhs 14.4 cr 120 cr 72 lakhs


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