Transcript CSC presentation

Intelligent Village –
Vibrant India
Building Foundations for Rural Entrepreneurship
The Rural Scene
• About 2/3rds of India’s rural
population engaged in
agriculture, accounts for less
than 1/4th of the National
Income
• Of the 135 million Rural
Households, nearly 102 million
have a per-capita income of
Rs. 300 per month
120
Number of HH in millions
• In 600,000+ villages
(about 1000 people per village
with per-capita income of
Rs. 20 per day)
– per capita GDP of Rs 10,000
per year
102.1
135 million rural
households
100
80
60
40
17
20
10
3.9
1.9
1
0.3
0.3
18
26
42
65
112
0
3
9
13
HH Incom e in thousand Rs/m onth
Can we make a Difference?
• Can technologies make a significant
difference?
– Can it bring to them health & Education
– Can it significantly enhance their
incomes?
Remote Eye Care with
Aravind Hospitals
Components of Our Rural Development Strategy
National eGovernance Plan–
enabling ICT as a
tool for development
National Rural
Health Mission with
Rural Sanitation–
improving rural
health & well-being
National Rural
Employment
Guarantee Programme
(NREGP) Act –
targeting lack of
opportunities
Comprehensive
Rural Development
Strategy
Right to Information
Act – enhancing
transparency
Bharat Nirman–
enhancing rural
infrastructure
Strengthening Sarva
Shiksha Abhiyan with
Universalization of
Midday Meal
programme – raising
levels of literacy and
educational attainment
Government of India’s NeG Plan
NeGP Vision
“All Government services available to the common man in his
locality, throughout his life, through a one-stop-shop (integrated
service delivery), ensuring efficiency, transparency, & reliability”
National Action Plan on e-Governance
Citizen
Database
Road
Transport
Central
Excise
Police
Pensions
India
Portal
HRD
CM
Land
Records
Insurance
Networks
Core
Policies
BPR
Banking
Land
Regn
Gateway
Architecture
Passport
Visa
DCA21
Commrl
Taxes
Income
Tax
Agriculture
Treasuries
CSC - A
Network of
Rural
Service Points
across the
length
and breadth of
India
Do ‘CSC Type’ initiatives exist in present times?
What we’ve looked at so far…
Yes! A host of them and Successful too!
The CSC is an attempt to integrate and scale-up
such Initiatives through National eGovernance Plan
The ‘CSC Scheme’ – Rationale, Objective
• CSC - an important component of the NeGP is a network of
service points across the length and breadth of rural India
• CSC aims to provide access to information, backed with
relevant infrastructure and end-to-end services that would
allow rural population, the opportunities to enhance their
quality of life
• By enabling access to a large number of services like
e-Government, education, health, credit, etc. the CSCs
offer a solid foundation for the economic prosperity of
rural India
The ‘CSC Scheme’ – Rationale, Objective
Contd…
• A “CSC” is an internet kiosk in a village with
PC+Internet+Printer, etc.
• A CSC would be serving the people residing in the village where
it is located and also a catchment of population 5-6 villages
surrounding the CSC Village
• Range of CSC Services – B2C(Sale of Agri-Products, IT Training,
Railway Tickets, DTP Services, Digital Photography); G2C (Form
Downloads, Land Records, Certificates, Online Application
Regn., Mandi Rates)
• The CSC Operator (Village Level Entrepreneur) will be selected
from the village and provided training. VLE will be responsible
for running the CSC business and providing services to the villagers.
Who drives the CSC Scheme?
• Government of India
– Department of Information Technology (DIT) - Nodal Agency
for NeGP –CSC Scheme- Implementation
– IL&FS – National Level Service Agency (NLSA) - is currently
managing the massive initiative of setting up CSCs in
1,00,000+ villages in the country
• State Governments
– State Level Agency (SLA) responsible for coordinating
implementation of CSC Scheme
• Grassroots
– Service Centre Agency (SCA) – Promoter of Rural ICT
Initiative – Prime Driver of Business and Service Channel
Manager
– Village Level Entrepreneur (VLE) – CSC (Village Kiosk) Operator
Challenges for the Scheme
Explicit
•
Low levels of educational attainment of the rural populace
•
Lack of awareness of ICT advancements
•
Poor socio-economic status
Implicit
•
Lack of understanding of PPP frameworks
•
Lack of appreciation of alternate viable livelihood opportunities
•
Lack of exposure to innovative practices, technological illiteracy
Opportunities Ahead………..
The Evolution Path
• CSC to evolve into a full-fledged catalyst for a two-way
exchange of goods and services between rural India and the
world
–
–
–
–
CSC as a Focal Point
Value Sourcing from Rural India
Value-added Products/Services
Achieving the Service Pyramid
Aiming at the Services ‘Pyramid’
Building Livelihoods
Quality of Life
Social Development
Income Opportunities
Save Costs
Data
Collection,
Rural BPOs
Entertainment &
Community Radio
Education, Healthcare,
Agricultural Extension, etc.
E-Commerce / Online
Marketplace/Market linkages
E-Government Services/Utility Services
Opportunities for Saving Costs
Government Services
• Land records
• Registrations
• Government certificates and forms
• Electricity bill payment
• Grievances redressal mechanism
Commercial Services
• Data entry (affidavits, estimates, resumes, etc.)
• Printing, photocopy, bill payments, online ticketing, digital
photography, document scanning, etc.
Banking and Finance
• Extension counters for lead banks and micro-finance
institutions
Income Opportunities, Quality of Life
Income-Building
•
Agri-Procurement – e.g. ITC-IBD, Godrej Agrovet, Tata Chemicals,
Chambal Fertlizers, IFFCO…lately…Reliance and Bharti
• Data Collection
• Vocational Training and Entrepreneurship – e.g. MICO Bosch
• eCommerce – national/international handicrafts procurement
agencies, trade portals such as e-Bay
• Bill Collection, Public Grievance Handling
Developmental Services
• Education and health services – Apollo Hospitals, Aravind Eye
Care, AISECT, NIIT
Quality of Life Services
•
FMCG Goods – e.g. toothpaste, nail-cutters, soaps, baby food, OTC Medicines,
• Community radio
• Cable Service Providers –community television
• Astrology, matrimonial services, employment services, etc.
Example: A VLE through CSC will offer a Farmer….
MARKET INFO,
Price Info &
Linkage
facilitation
HARVEST & TRANSPORT
OF PRODUCE facilitation
STORAGE
facilitation
KNOWLEDGE /
Extension Services
Facilitation/ Alternate
farming
PRODUCTION RISK
COVERAGE &
PRICE RISK
COVERAGE
CREDIT
facilitation
INPUT facilitation
IRRIGATION
facilitation
Seeds, Fertilisers,
Pesticides, Farm Machinery,
Soil Testing
Example: IETS Partnership with ITC
ITC-IBD and IETS
working together on promoting
e-Education
(Pilot in 11 villages in Yavatmal)
Value Proposition
– Sanchalak: Round the year revenue potential and social standing
– Student end: Access to education solutions, which help improves
their quality of education and their academic performance
– Teacher: Access to programs which helps improve their ability to
deliver quality education and increase their revenue potential
Government Support….Viability of Rural Kiosk
•
Government has underscored the need for support to achieve
sustainability around e-Government services in rural kiosks
•
Emphasis is on achieving ‘optimum support level’ that neither
discourages or over-incentivizes the SCA/VLE, leading to underperformance
•
Over the first phase of the project (i.e. first four years of operation) the
‘minimum’ Opex is nearly 2.5 times of the initial infrastructure cost
•
Clearly, the bigger challenge is to cover the revenue gaps and associated
risks which arise in rural markets
•
To that effect, Government of India (DIT) has proposed a revenue-based
governmental intervention and support, rather than a capital subsidy.
•
Essentially the Government support will take the form of:
– Guaranteed Provision of Government Services:Viability Funding
– Debt Service Reserve Fund : Liquidity Support
Government Support…Technology & Connectivity
• Technology Architecture framework being drafted for hardware,
software, connectivity options at
• CSC Level
• SCA Level
• SPV Level
• The framework would be made available to the SCAs as well as
States
• Initiated discussions with BSNL and other telecom operators for
leveraging their rural footprint
• Assessing various options on Language Interface for providing
multi-lingual capabilities
• Interacting with State Governments to assess their SWAN
implementation status
Business Model for the CSC Scheme
• The SCA will drive the CSC business. Headquartered at a
District or Taluk, the SCA will manage the CSCs set up in
select villages, manned by VLEs
• SCA and the selected VLE will enter into a business
agreement
• SCA will invest in physical infrastructure, develop portfolio of
B2C, G2C services, tie-up with Technology Service Providers
(TSPs), facilitate bank linkages for the VLE-CSC, train the
VLE on new contents, mentor the VLE
• VLE using his clout in the village needs to assess the felt
need for ICT-based services, build social capital and
business opportunities, make CSC the one-stop-shop for the
villagers
Business Model for the CSC Scheme
Contd…
VLE Business Model
•
•
•
VLE will invest an amount ranging between Rs. 15,000/- and Rs.
30,000/- as ‘Deposit’ with the SCA.
VLE will spend on Selection and Training expenses ~ Rs. 2500/VLE will have to part with a Revenue Share + Fixed Monthly service
Charge to SCA
In return…VLE will have
•
•
•
•
•
Income from CSC Services
Infrastructure Support for CSC – PC, Internet, Printer, etc.
Access to Training and Mentoring
Bank-linkage – Handholding support from SCA Field Staff for
Loaning Process from Banks
Revenue-Shortfall Support from Government through the SCA
Business Model for the CSC Scheme
Contd…
SCA Business Model
• SCA will invest in Physical Infrastructure, CSC Hardware
and Software
• SCA will incur Operational Costs
In return…SCA will receive
• Revenue-Share + Fixed Monthly Service Charge from VLE
• Revenue-Shortfall Support from Government
Critical Enabling Factor ...Rural Entrepreneurship
• To carry out all the activities outlined before…a single
critical factor stands out …i.e., “Rural Entrepreneurship”
• Rural entrepreneurship, is community based, has strong
extended family linkages and a relatively large impact on a
rural community.
• A rural entrepreneur is someone who is prepared to stay
in the rural area and contribute to the creation of local
wealth.
• The economic goals of a rural entrepreneur and the social
goals of rural development are strongly inter-linked.
Rural Entrepreneurship - A Novel Approach
•
How does a Rural Entrepreneur or Village Level Entrepreneur (VLE)
get Created?
Usually, Personal Characteristics +
Socio-Economic Aspects make a…VLE..
•
However, VLE can also be created through a set of supporting
institutions and through deliberate innovative action…. And this is
where IETS steps in….
Deliberate Innovative Action … in terms of Education and Training.
Rural Entrepreneurship Training greatly affects supply of rural
entrepreneurs….thus is indirectly an important source of rural
entrepreneurship.
Who can be a VLE?
Geography-wise
Candidate belonging to a Rural Location – Village, Gram
Panchayat, etc.
Occupation-wise
Any Occupation….One who is running a small business in village,
educated unemployed youth, retired government functionaries, ExServicemen, farmer, etc.
Socio-Economic Condition
Not relevant…
Personal Traits
Self-disciplined, willing to serve the community, willing to learn and
earn by put learning to practice
CSC – An Opportunity for Army Personnel
to Build the Rural Foundation
• The CSC Scheme presents a good opportunity for the Army
to retrain and redeploy its strong workforce in peace-time
grassroots initiatives
• CSC provides a unique opportunity for Post-retirement
pursuits. Every year around 20,000 army personnel of
various ranks, retire from their Commissions.
• CSC Scheme is all about Nation Building and Social
Entrepreneurship which is all about serving Village
Communities through Rural Entrepreneurship
• Army recruitment drive could be further decentralized using
CSC as Centres for Awareness Building, Promotion and
Receiving Applications
• CSC can provide a unique platform to forge a win-win
partnership [Advanced Technology + Disciplined Workforce
at Grassroots] aimed at Rural Prosperity
How to participate in CSC?
Contd…
• IL&FS-IETS is exploring the possibility of associating with
the Indian Army in bringing the ex-servicemen and retired
army personnel irrespective of their ranks into the CSC
fold.
IETS believes…
• The Indian Army provides a rich resource-base of
disciplined, capable and determined human force to
reckon with for peace-time nation building activities
• A large number of Army personnel serving across the
country in different ranks complete their commission term
every year and return to the civilian fold – in most cases
settle in rural areas
About
IL&FS - IETS
IETS Activities
•
IL&FS Education and Technology Services Limited (IETS) is promoted by
IL&FS
•
Key Objectives - Making learning experience-led, interactive, insight-based
and stimulating thereby improving the overall quality of education delivery
•
IETS is also engaged in undertaking capacity building initiatives for
government employees, village level entrepreneurs, NGOs, etc. in the realm of
governance and rural entrepreneurship.
•
Some of our Initiatives:
Initiative
V-Governance Program, Government of Gujarat
No. Trained
2,25,000
V-Governance Program, Government of Rajasthan
16,000
Teacher Training Programs across 1000 schools
25,000
Computer Education Program
1,35,000
IETS Team
•
200 professionals with
over
90
percent
working
in
the
operative
divisions
and the core support
functions
•
Academicians,
administrators,
social scientists,
policy formulators,
consultants and
technocrats form part
of IETS’s team. Such
diversity adds to the
overall vibrancy and
strength of the team
Partnering for Change.…
• IL&FS being the national level coordinating
agency, seeks partnerships with like-minded
organizations and individuals who share their
commitment and passion to enhance the
economic landscape of rural India through
training and capacity building
• We would be more than glad to guide and assist
interested Parties in their endeavours
Thank You!