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Saturday, April 21, 2012

CORE to sell Rs. 225 cr in vocational training

The CORE Education and Technologies Ltd have plans to make investments in vocational education stream. Under the plan the CORE will invest around Rs. 225 crore to open a chain of vocational education institutes across India. Nearly three million people shall receive vocational training in next five years.

The Chairman and Executive Director Sanjeev Mansotra of CORE believe that India has vast potential in vocational education category and he is keen to cash on this opportunity. His expectation is to raise nearly 600 Crore from him vocational education program. India needs approximately 1.5 million work foce to work in different industrial segments and providing vocational training seems goldmine field to Mansota.

Vocational training in India is a $20 billion business opportunity per year, according to a July 2011 report by Kotak Securities Ltd. around 475 million people will need training by fiscal 2022, it said. Prime Minister Manmohan Singh has set a target of training 500 million people by 2022 and the central government has already allocated Rs. 2,500 crore to the national skill development fund since 2009-10. Besides, several ministries are also deploying resources for skilling India’s workforce.

Mansotra added Core Education will raise funds from three main sources—internal accruals, public-private tie-ups with government agencies and a possible loan from the National Skill Development Corporation (NSDC). “We will follow the source, train, place model by working closely with industry and government bodies,”  “Skill is a huge challenge and this needs to be tackled on a mass scale without hampering quality,” said Rituparna Chakraborty, co-founder and vice-president of staffing firm Teamlease Services Pvt. Ltd. “Currently, we struggle to get enough right candidates. Our rejection rate is quite high.”

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