Talent Development for City Gas Distribution Business

PETROFED

July 2012

Contents

Overview of City Gas Distribution in India

Potential model for CGD talent development

Way forward

2012 Deloitte Touche Tohmatsu India Private Limited

1. Overview of City Gas Distribution in India

City Gas Distribution
City Gas Distribution (CGD) map is limited to approximately 70 cities. Available transportation network of 13000km and 380+ CNG
stations catering to about 6,00,000 domestic, 25,000 commercial and 700 industrial connections
An estimated investment of Rs.400 billion was planned during XIth five year plan (2007-12) in gas sector, 75% of which is for
transmission pipelines and CGD distribution infrastructure combined. CGD coverage is expected to increase to over 250 cities in
the near future
Key players in CGD include GAIL and its subsidiaries with regional players and other PSUs, Reliance Gas, GSPC Gas Co. Ltd.,
Lanco Infratech Ltd, Adani Energy, GGCL, GEECL, DSM Infratech, LMJ Energy Infralogistics Ltd etc.
Regulatory and policy initiatives are being taken to drive growth of city gas distribution networks

Challenges in City Gas Distribution

Infrastructure
Need for creating vast
CGD network with
accelerated pace,
commensurate to public
demand

Safety
Developing CGD specific
safety standards
Monitoring the
implementation of safety
standards by an
independent agency

Regulatory

People

Gas availability / allocation

to CGD entities which are
not gas producers or
marketers

Developing a talent pool

of skilled manpower to
handle the various
activities in the value
chain of CGD

Gas purchase pricing for

CGD
Pipeline connectivity from
pipeline infrastructure
provider

Source: Edelweiss Securities, August 2011 Report

Designing an
institutional framework
for developing,
certifying and employing
skilled manpower

2012 Deloitte Touche Tohmatsu India Private Limited

2. Potential model for CGD talent development

Talent Requirement for City Gas Distribution
CGD Talent Requirements
Value Chain
Activities

Demand
Assessment

Sourcing

Network Design

Construction

Erection and
Commissioning

O&M

Key Jobs

Market Research
Analyst

Natural Gas
Sourcing Specialist

N/W Simulation
Specialist

Fitter, Rigger,
Plumber, Welder

Electrical &
Instrumentation
Specialist

O&M Technician,
Meter Reader, Bill
Distribution and
Collection

Similarities with Power Distribution Sector

Value Chain
Activities
Key Jobs

Load
Forecasting

Network Planning

Procurement

Construction

Erection and
Commissioning

Commercial
Assistant
Planning
Centralized
Linemen, Assistant Linemen,
Department- Load Corporate
Linemen,
Helpers,
Department
Procurement Team Linemen, Helpers
Management
Testing Team

O&M and
Commercial
Operators, Meter
Reader, Bill
Distribution and
Collection (A/c)

City gas distribution talent management is unstructured and its capacity building experiential. Opportunity to get the
talent development framework on track right from the beginning.
Need for a blue-print for talent development.
Need to learn from skill development interventions in other sectors:
Learning from the interventions by Ministry of Textiles, Ministry of Power, MoRD etc.
Please click for case study of Skill Development in Power Distribution.
4

Deloitte

2012 Deloitte Touche Tohmatsu India Private Limited

2. Push & the Pull Triangular Model for CGD Talent Development
Key Stakeholders in Talent Development for City Gas Distribution
Involvement of the following three key stakeholders viz. Industry/ Employers, Certification Authority and
Master Training / Training Delivery Institute necessary for development of talent.

Association of
CGD Industry
Players

Regulator,
Certification
Authority

Establish Quality & Credibility

Establish Norms for the industry & advise on
curriculum design for courses/ refresher courses
An Independent body appointed by DGET (or any
other body) to design and implement certification
mechanism for Master Trainer and Training
Institutes

Click here for snapshot of Certification

Framework for CGD in Singapore.
5

PULL: Building Respectability for the

profession-Employment Brand
Provide inputs for training course design
Facilitate on-the job training
Placement for trained and certified
candidates monitor supply and demand

Master Training
Institute/ Training
Delivery
Institutes

PUSH: Attract Students for training

programme- employment promise
Design standardized training course
contents for key jobs
Train the Master Trainers
Capacity building of training delivery
institute staff by Master Trainer
Evaluate the candidates post training
Provide placement counseling to
candidates 2012 Deloitte Touche Tohmatsu India Private Limited

2. Blue Print for CGD talent development

Study for the CGD Industry
Identification of
key jobs from
CGD value
chain

Demand side
assessment
Supply-side
assessment

Good practices of
other Western and
Asian countries

Training course design based on

PNGRB
Requirements

Industry Needs

Key input providers: DGET, Certifying

training institutes of CGD

Training delivery process

Identification of
Master Training
Institutes

Training of Master
Trainers

Identification of ITIs
in key cities

Training of ITI Staff

Training of candidates as
part of ITI curriculum

Vocational Finishing/ Refresher Certification Programme

Post Training Processes

Evaluation and
Evaluation and
Certification of
Certification of
trainees post
trainees as part of
Vocational training
ITI curriculum

Placement Counseling

Assessment of overall training delivery framework by independent Certification/ Assessment agency

2012 Deloitte Touche Tohmatsu India Private Limited

3. Way ForwardCreation of a Blue Print for CGD Talent

Assessment:
Demand Side: involve key stakeholders in Gas industry such as PNGRB, GAIL, GSPL, RIL, etc. to gather information about:
The key jobs that will be required at various levels of the CGD value chain
Quality of workforce required for key jobs in various activities of city gas distribution value chain
The employers perspective on the technical skills and behavioural skills possessed by the current workforce
The technical skills and the behavioural skills required for the execution of the job
Frequency of training/ Refresher Programmes
Supply side: Evaluate Institutional framework as well as the Vocational Education and Training (VET) system . Assessment of
existing government policies and regulations that impact skill development in the identified CGD states
Skill development initiatives of other countries: Vocational Education and Training system in developed countries in Asia,
Europe and North America where there is robust CGD network.
Building the Blue Print:
Define the Role of the Triangle and the Institutional Framework- The Push & the Pull: Employers-CGD Association,
Certification Agency, ITI and Training Institutions

Outline the course content of the training & refresher programmes for key field level positions and develop a methodology for
delivery of the programs.
Define certification and talent supply regulation
Build a financially viable model. Examine training costs and fees
Build the employment Brand for the Sector

Success is dependent on the coordinated effort of the three players- Employers, Certification
and Training Institutions to build respectability & attract talent to the CGD profession!
7

2012 Deloitte Touche Tohmatsu India Private Limited

Ajit Mathai
Director
Deloitte Touche Tohmatsu India Private Limited
9th Floor, ASV N Ramana Tower, 52, Venkatarayana Road, T.Nagar, Chennai 600 017, Tamil Nadu, India
Tel: +91 (44) 6688 5000 / Fax: +91 (44) 6688 5400 / Mobile: +91 97899 81495
Email: ajitmathai@deloitte.com
Website: www.deloitte.com

Prakash Tripathi
Senior Advisor
Deloitte Touche Tohmatsu India Private Limited
7th Floor, Building No. 10-B, DLF Cyber City Complex, DLF City Phase II, Gurgaon - 122002, Haryana, India
Tel: +91 (124) 679 2000 / Fax: +91 (124) 679 2012 / Mobile: +98912 37809
Email: ptripathi@deloitte.com
Website: www.deloitte.com

Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and
independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
This material and the information contained herein prepared by Deloitte Touche Tohmatsu India Private Limited (DTTIPL) is intended to provide general information on a particular subject or
subjects and is not an exhaustive treatment of such subject(s) and accordingly is not intended to constitute professional advice or services. The information is not intended to be relied upon as the
sole basis for any decision which may affect you or your business. Before making any decision or taking any action that might affect your personal finances or business, you should consult a
qualified professional adviser. None of DTTIPL, Deloitte Touche Tohmatsu Limited, its member firms, or its and their affiliates shall be responsible for any loss whatsoever sustained by any person
who relies on this material.
2012 Deloitte Touche Tohmatsu India Private Limited.

Case Study : Talent Challenges in Power Distribution (1 of 3)

Talent Requirement in Power Distribution Sector

Value Chain
Activities
Key Jobs

Load
Forecasting

Network Planning

Procurement

Construction

Erection and
Commissioning

Commercial
Assistant
Planning
Centralized
Linemen, Assistant Linemen,
Department- Load Corporate
Linemen,
Helpers,
Department
Procurement Team Linemen, Helpers
Management
Testing Team

O&M and
Commercial
Operators, Meter
Reader, Bill
Distribution and
Collection (A/c)

Data from Working Group of the 12th plan proposes an increase in Technical Employees in the Distribution Sector to be 3,28,100.
The approximate requirement of staff at Grade A, B & C cities for Construction, Erection and Commissioning, O&M, Commercial
Activities (C&D Employees) is as shown below:

Cities
Category

Cities

Bangalore, Chennai, Delhi, Hyderabad,

Kolkata, Mumbai

60,00,000 (Delhi)

Ahmedabad, Jaipur, Kanpur, Nagpur,

Lucknow, Bhopal, Patna, Pune, Surat,
Visakhapatnam, Vijayawada, Kochi,
Bhopal, Vadodara, etc.

600,000
(Bhopal)

Deloitte

Approximate number of
registered consumers

Approximate Requirement of
C&D Category Technical
Employees per city
8700
937
(1 employee for 640 consumers)

2012 Deloitte Touche Tohmatsu India Private Limited

Case Study : Talent Challenges in Power Distribution (2 of 3)

Target audience of training programs identified at three levels and included utility employees and franchisees.
Training of
Franchisee C
Owner

O&M

Commercial

Line
Maintenance

Other
Maintenance

New Service
Conn.

Disconnections

Meter
Replacement

Meter
Reading

Bill
Distribution

Collection

Training of C&D Employees and Franchisee who function as extension of C&D Employees

Training Delivery Process

Central Agency for coordinating training delivery process. Training delivery through
tie-up with regional institutes and ITIs.
Support in designing standard training curriculum, training of ITI staff and training of
candidates
Vocational training to candidates.
Evaluation of Creation of Certification Programs post vocational or ITI training.
Placement Counseling

10

Training of Franchisee
Operator covering a
geography

2012 Deloitte Touche Tohmatsu India Private Limited

Case Study : Talent Challenges in Power Distribution (3 of 3)

Value Chain
Activities
Key Jobs

Load
Forecasting

Network Planning

Procurement

Construction

Erection and
Commissioning

Commercial
Assistant
Planning
Centralized
Linemen, Assistant Linemen,
Department- Load Corporate
Linemen,
Helpers,
Department
Procurement Team Linemen, Helpers
Management
Testing Team

O&M
Line
Maintenance

Other
Maintenance

O&M and
Commercial
Operators, Meter
Reader, Bill
Distribution and
Collection (A/c)

Commercial

New Service
Conn.

Disconnections

Meter
Reading

Meter
Replacement

Bill
Distribution

Collection

Training
Modules

Objective of the
training modules

Target Participants

Core focus areas of the Training

Meter Reader
Training

Persons who have completed

10th standard

Meter Reading, Bill Distribution,

Revenue Collection etc.

Persons who have passed ITI

(preferably electrical)

Line Construction, LT Network

Maintenance etc.

Persons who have passed ITI

(preferably electrical)

Operation of 33/11 KV Sub-station

etc.

Linemen
Training
Sub Station
Operator
Training

To create talent
pool at field
operational level

Back
11

Deloitte

2012 Deloitte Touche Tohmatsu India Private Limited

Snapshot of the Skill Development Initiatives for CGD in

Singapore (1 of 2)
Training Programs for City Gas Distribution in Singapore
Workplace Safety & Health Courses

Gas Basic Course

12

Non-certificate Courses

Gas Pipe Fitter Course

Laws, Acts and Regulations

Pipe and pipe fittings

Code of practice for

Manufactured Gas Pipe
Installation

Pipe laying and installation

practices

Gas Domestic Utilization

Handling gas escapes, gas

hazards

Introduction to Natural Gas

Safety precautions

Polyethylene Systems

Pressure testing

Gas pipe Construction and

Maintenance

Purging and charging in

Deloitte

Practical Training

Gas Service Worker License Program

Gas Supply Registration & Practices

Basic knowledge of
manufactured and natural gas
Composition and
characteristics
Safety precautions on use of
Town Gas
Gas (Supply) Regulations and
Code of Practice
Installation
Commercial: Metering, billing &
collection

2012 Deloitte Touche Tohmatsu India Private Limited

Snapshot of the Skill Development Initiatives for CGD in

Singapore (2 of 2)
Training Programs for City Gas Distribution in Singapore
Workplace Safety & Health Courses

Eligibility
Criteria

Non-certificate Courses

Gas Service Worker License Program

Water Service Plumber License with at

least 2 years experience; or

Builder Certificate in Plumbing/

Pipefitting issued by BCA Academy or
equivalent with at least 2 years
relevant experience; or

NTC-3 Certificate in Plumbing /

Pipefitting (Practical part only) or
equivalent with at least 10 years
relevant experience

Gas Basic Course,

Gas Supply
Registration and
Practices and Gas
Service Workers
Course

Licensed Gas
Service
Worker

Refresher Course
for Licensed Gas
Service Workers

Back
13

Deloitte

2012 Deloitte Touche Tohmatsu India Private Limited