Centre asks SEZ developers to set up training facilities

To make special economic zones (SEZs) more inviting, the government has asked developers to set up skill development facilities, including hostels for those undergoing training.

Commerce department officials told Business Standard that the development commissioners in these zones are being asked to work with the developers in identifying activities where skill development work can be undertaken. For instance, the developer of an information technology zone can help train people in facility management or construction activity.

“It is not necessary that the training facility caters only to the requirement of the SEZ. In fact, it should have the capacity to train manpower for supply to those outside the zone,” an official said.

The developers are being asked to set up not-for-profit companies, referred to as Section 25 companies, and approach the National Skill Development Corporation (NSDC) with their proposal to train people in the identified 21 sectors. An official said the developers would also be entitled to grants and loans from NSDC. Apart from NSDC — a not-for-profit company — other technical partners can also be roped in.

Several of the proposed special economic zones that were planned across the country have run into trouble due to opposition from local residents who would have to give up their land for the development of the duty-free enclaves. By training and helping in skill development, the commerce department is trying to create an environment where the displaced population can find employment within the SEZs.

“SEZs require skilled manpower for its development, operations and maintenance of facilities within the zone as well as for the units that come up. It will be a win-win deal for people living around the zone to get training. It would also be beneficial for developers as they would not have to spend significant amount of money and effort in getting people to work in the zones,” said an official.