Transcript Slide 1

Establishment of Common Services
Centers in Nagaland
CSC Concept and Business Model
Presentation to
His Excellency The Governor of Nagaland
December 18, 2006
Presentation Outline
• CSC Concept
• Stakeholders &Implementation Framework
• Business Plan
• Decisions from the State Government
CSC
Conce
CONCEPT
Common Services Centers
• NeGP envisions “web-enabled Anytime, Anywhere access”
to information and services in rural India, through three
infrastructure pillars
- State Wide Area Network
- National Data Bank/ State Data Centres
- Common Service Centres (CSC)

CSC is the front-end delivery points for Government, private
and social sector services to rural citizens of India
Common Services Centers
• CSC is more than just service delivery points
- Positioned as a Change Agent
- Promote rural entrepreneurship
- Build rural capacities and livelihoods
- Enable community participation
• CSC requires interaction and coordination between
no. of stakeholders
- PPP model proposed to ensure effective
implementation
Common Services Centers
• CSC Scheme provides a framework to enable setting
up of 100,000+ ICT enabled access points across rural
India
- Targeting all the 638,000+ villages
- 1 CSC for a catchment of 6000 - 7000 citizens
- Managed by trained manpower
- Equipped with state of the art technology
- Supported by Government of India/ State Govt
Existing Kiosks
-- ITC e-Choupal
-- n-Logue
-- Drishtee
-- AISCET
-- DA-TaraHaat
-- Datamation
-- Others
: 5300 Kiosks
: 1700 Kiosks
: 700 Kiosks
: 4000 Kiosks
: 40 Kiosks.
: 35 Kiosks.
: 500 Kiosks
Limitations:
-
Lack of sufficient variety of services
Lack of economies of scale to capture & cater to mass population
No aggregation of content & services
Lack of awareness of potential of rural markets among other private
investors
- Top down delivery of services, hence not catering to citizen specific
requirements
Example: Drishtee started of with 52 services. Only 8 survived
Non-integration of private and government initiatives
The CSC Scheme: Elevating Rural India
• Three essential resources necessary for rural development viz.,
Information, Infrastructure and Services
Low Income
Lack of Info/
Knowledge/ Goods/
Services
Lack of Skills
Lack of Income
Generating
Opportunities
Poverty
• Access to information, with relevant infrastructure, end-to-end
services allow rural population to enhance their quality of life
• By enabling access to a large number of e-gov services like,
education, health, credit, etc. CSCs offer a solid foundation for
economic prosperity of rural India
The Service Model
Value-adds
Data
Collection,
Rural BPOs, etc.
Quality of Life
Entertainment
Social Development
Create Income
Opportunities
Education, Healthcare, Agricultural
Extension, etc
Market Linkages
Save Costs
E-Government Services
The power of the CSC would lie in its focus on content customization and
multi-lingual delivery of End-to-End Services
Restructuring the Delivery of Services
• Radical change in communication by all Government
Departments
- eg. A simple AIDS Awareness poster could be
delivered to 100,000 villages in a matter of seconds by
using the CSC network
• E-enabling of socio-economic services such as Rural
Development can improve quality & reduce cost
• Business process re-engineering through managerial
and financial resources
Enabling Transformation
E-Government
Education
Tele-medicine
CSCs would be the platform for fundamental transformation of the ways in
which development challenges would be met in rural India
Social Inclusion
Agriculture
Entertainment
The CSC Impact
Over 400,000
new employment
opportunities
in rural India
Timely delivery
of critical
Information &
Services
Closer links
between
Government &
Citizens
CSC
Structured
system to manage
issues of health,
education,
etc.
Higher
administrative
efficiency
& reduced
red tape
Cost-effective
access to
Government
Services
Some MoU Negotiations
ITC
BANKS
Stakeholder and Implementation
Framework
The Stakeholders
IT Services &
Content
Providers
DIT
State
Governments
NLSA
SDAs
Rural
Citizen
VLEs
SCAs
State Government
Agencies
Private
Service
Providers
Central Ministries
and Departments
DIT FRAMEWORK
Implementation Framework :
A Snapshot
DIT
NLSA
STATE GOVERNMENT
SPV
SDA
SCA
VLE
Business Plan
Business Plan
• Business Model is a synthesis of various interactions with potential
stakeholders, especially SCAs
• Financial stake of every stakeholder is recommended to maintain
financial integrity and long term sustainability
• Revenue Share between VLE, SCA and SPV
Stakeholder
VLE
Financial Stake
Margin money as a deposit with SCA
Benefit
Income from Services
Revenue Sharing
Cost of Training
SCA
SPV
Capex & Working Capital
Revenue share with VLE
Equity Participation in SPV
Royalty from network
Resource Mobilization
Revenue share with VLE
Backend Monitoring
Business Support
Identify other Strategic Investors
Government
Revenue Support
Socio-Economic Change
Decisions from the State
Nagaland - A Snapshot
•11 Districts
•16 ADC HQs
•22 SDO HQs
•52 EAC Circles
•52 Blocks
•1317 Villages
•220 Potential
CSCs
Nagaland – Special Issues
•Perceived Instability
•Fear of Insurgency
•Geography
•Population
•Lack of industrial base
•Churches as welfare
fountainhead
•Big BPO opportunity
•Big Agri Procurement
Base potential
Nagaland – Making it Happen
CONSIDERING THE UNIQUENESS OF THE STATE, THE PROPOSAL IS TO
ROUTE THE PROJECT TO THE CHURCHES COLLEGIUM WHERE
PEOPLE FROM ALL WALKS OF LIFE WILL BE A STAKEHOLDER
Nagaland – Making It Happen
•Issue RFP for State Wide Area Network
•Finalise RFP for the Common Services Centres
•Open Discussions with the Churches Alliance
•Identify list of services that are citizen friendly and need-driven
•Start work on Departmental Digitization
Connectivity
• CSCs to have Broadband internet enabled connectivity
• CSCs to ride on SWAN connectivity
• State can propose alternative to SWAN for CSC
- Needs to formalize the same before launching CSC
- SWAN to provide connectivity up to Block level
- From Block to the CSCs would be wireless
• State to decide whether SWAN connectivity to be
provided without charges for 4 years for delivery of egovernment services
SWAN STATUS
Concept of Government Support
• No Capital Subsidy envisaged under CSC Scheme
• Framework for ‘optimum level’ of Govt support
- SCA/VLE is neither discouraged nor ‘over-incentivized’
• Support provided as “Guaranteed Provision of
Revenue from Governmental Services”
• Quantum of support to be determined through bid
process
• Support to be shared equally between GOI and State
(ACA)
- ACA provided by Planning Commission for NeGP
Revenue Support
• Support to be provided after all CSCs are rolled out
• Revenue earned from e-gov services to be offset
- Savings can be used for back-end computerisation
• Notional allocation of support
- 33% of normative value (CSC/month) on 1:6 criterion
• If total bid amount is lower than total notional allocation,
State may increase no. of CSCs without exceeding the
allocation
• At SCA level support not to exceed 50% of the normative
value
Concept of Government Support
• No Capital Subsidy envisaged under CSC Scheme
• Framework for ‘optimum level’ of Govt support
- SCA/VLE is neither discouraged nor ‘over-incentivized’
• Support provided as “Guaranteed Provision of
Revenue from Governmental Services”
• Quantum of support to be determined through bid
process
• Support to be shared equally between GOI and State
(ACA)
- ACA provided by Planning Commission for NeGP
Revenue Support…
• If bid exceeds this value, State may adopt any of the
following courses of action
- Negotiate with bidder to bring down the bid to within 50%
- Meet the additional cost from the States own resources
(ACA will not be available)
- Reduce no. of CSCs to bring down the bid within 50%
• States accordingly to formulate appropriate bid
packages
- Regions with lower revenue potential may be clubbed
with regions having a higher revenue potential
Revenue Support…
• In special cases States may award bids exceeding 50%
with prior approval of GoI
- Increase is due to special conditions prevailing in the area/
SCA unit
- Bid amount although above 50%, it is still within 50% of
the actual operating cost of CSCs
• If State invites bids for more CSCs, revenue support
would be restricted to 33% of the normative value
• State needs to obtain financial sanction from DIT, prior to
issue of award to SCA
- Sanction for a State to be based on the finalized amount of
the total bids, subject to the norms
Pricing for e-gov services (Indicative)
SCA/VLE’s
Share
State’s
Share
Type of transaction
(per page or per
transaction as the
case may be)
Charge to
citizen
Utility
Provider to
pay
E-Government
Rs. 10
Rs. 10
Rs. 0
Rs. 0
Utility Collection
Rs. 0
Rs. 4
Rs. 0
Rs. 4
Land Record
Rs. 25
Rs. 15
Rs. 10
Rs. 0
Extent of Revenue Offsetting
• The revenue support is proposed to be set off against:
- revenue generated from e-gov transaction charges
• The actual extent of set off need to be decided by the
State Government based on:
- level of incentive to be provided to the SCA to deliver egovernment services
Revenue Sharing and Offsetting Mechanism
• Revenue sharing and offsetting mechanism is illustrated
below:
- Revenue support sought by SCA and accepted by the State
= Rs.3000/month/CSC
- SCA’s Share from revenue generated from e-governance
services and land record service at a particular CSC in a month
= Rs.1000
- Offsetting = 70% (say) of Rs 1000 = Rs.700
- Revenue support the SCA is eligible for = Rs.3000 – Rs.700
= Rs.2300 payment to SCA will be on quarterly basis (revenue
support) upon completion of setting up of all the CSCs by the
SCA.
Illustrative Example
Expenditure Assessment
per district
CAPEX
OPEX
Revenue Assessment
per district
Government
Non-Government
Services
Services
Revenue Support Required per year over 4 years
Charge per Government
Transaction
Balance 50%
Government Share per
Transaction 50%
SCA to
determine
Offset
50%
VLE Share
SCA Share
For 0 support and/or after 4 years State will determine sharing in transaction
cost
SCA Selection Process
• States to prepare RFP for selection of SCAs
• NLSA to provide support to States in managing the bid
process
• States to provide all required support to NLSA in
collecting information about:
- Existing physical infrastructure & telecom network, IT
policy, Ongoing process of government service delivery,
E-readiness of States etc.
• RFP template has been developed in four parts & will be
provided to the States
Tentative EOI-Pre Qualification Criteria
• Bidder should have been in existence for at least 3 yrs
• Bidder, if a company, should have a minimum average
net worth of Rs.5 Crs over last 3 financial yrs
• Bidder, if a society/trust/NGO, should have a minimum
average fund flow of Rs.1.5 Crs over last 3 financial yrs
• In case of a consortium the cumulative minimum average
net worth/ fund flow of the bidders would be considered,
however, the prime bidder should satisfy at least 50% of
the financial criteria
• If a bidder has established more than 100 ICT enabled
kiosks, the above criteria is applicable to only to the
extent of 50%
Issuance of RFP
• RFP for CSC Scheme to be issued after RFP for SWAN
• State to issue advertisements in all major newspapers in
the State and one National Newspaper
• RFP to be hosted on the State’s website for downloading
• RFP to mention that the SCA to be an entity (company,
society, trust, etc.) with capabilities for undertaking such
projects
• State may prescribe pre-qualification criterion keeping in
view local requirements
Technical Bid Evaluation/ Financial Bid Opening
• Technical Bid Evaluation
- State to set up Evaluation Committee for bids submitted
- Committee to include nominees from NLSA & DIT, GOI
• Financial Bid Opening
- Financial bids to be opened only for those bidders
meeting the minimum prescribed technical score
• Service Level Agreements (SLA)
- Upon selection of bidder, State to finalize SLA with SCA
- Draft SLA to be a part of the RFP
Timelines
Activities
Submission of Draft RFP to State
Timelines
T=0
Circulation of Draft RFP among stakeholder Departments and revert with T + 1 month
comments
Incorporation of comments and final approval of RFP
T + 1.5 months
Issuance of RFP
T + 2 months
Pre-Bid Meeting
T + 2.5 months
Issuance of Amendments & Minutes of Pre-Bid Meeting
T + 2.75 months
Submission of Bids & Opening of Bid covers
T+ 3.75 months
Technical Presentations
T + 4.25 months
Submission of Evaluation Report by Evaluation Committee
T + 4.5 months
Approval of Evaluation Report by State
T + 4.75 months
Opening of Financial Bids
T + 5.0 months
Finalization of Service Level Agreements with preferred bidder
T + 5.75 months
Issuance of Letter of Intent
T + 6.0 months
Commencement of Roll –out of CSCs
T + 7.0 months
Completion of roll-out of CSCs & Operationalizing of 100% CSCs
T + 19.0 months
Support from State Departments
• High Powered Committee
• Evaluation Committee
• Backend Computerization
• Capacity building
• Process re-engineering
• Setting up a platform for delivery
• Pricing of government services
• Sharing of revenue
• Outsourcing of works to CSCs (Rural BPOs)
Support from State Government Departments
• Designate one Officer from each Department
- Setup a mechanism for regular monitoring
- Integrate the existing schemes on computerisation etc.
with the objective of delivery of service to the Citizens
• Media Campaign for Awareness
- Deciding on brand name for the CSC
- Deciding on the logo for the CSC
- Making a documentary film
- Making posters
- Youth awareness campaign
Timelines
Quarter
Ending
PHASE I
PHASE II
PHASE III
Phase 1
Phase II
Phase III
Project
Development
Put operational
variables in
place
Set up physical,
digital and
technology
infrastructure
MAR’06
JUN’06
SEPT’06
DEC’06
Ongoing
support
MAR’07
DEC’07
THANK YOU!
Roles… : DIT, GOI
• Provide Policy & Regulatory support
• Coalesce Central & State support for the CSC Scheme
• Undertake necessary approvals at the Central and State
level for smooth implementation of the CSC Scheme
• Provide necessary support for delivering e-Government
Services
• Facilitate infrastructure support through SWANs
Roles… : State Government
•
Set up a High Level Committee for overseeing implementation
of the CSC Scheme including selection of SCAs
•
Driver for policy, regulatory and other relevant changes
•
Providing Financial Support
•
Service provider for e-Government services
•
Infrastructure and other support to SDA/SCA
•
Decide on Integration of CSCs with existing physical/digital
infrastructure:
- Government Agencies/ Departments / Schools, GPs/PHC and
Post Offices (in consultation with GOI).
•
Decide on Integration with schemes in Education, Health, etc
Roles…: State Designated Agency (SDA)
•
Must be an agency controlled by State Govt:
- Facilitate e-readiness of the State
- Provide policy, regulatory and other support at State level
- Facilitate integration of the existing ICT enabled and other
Government Schemes into the CSC Scheme.
- Help identify CSC locations
- Coordinate and facilitate interactions with various State
Government Departments
- Select SCA under the guidance of the High Level Committee
- Facilitate training, capacity building awareness campaigns
- Facilitate the SWAN interface
Roles…: NLSA
•
Provide program management support to DIT for rolling out CSC
Scheme
•
Program Management: Provide right strategy, framework and
guidance to all stakeholders for effectively managing the Scheme
across the country
•
Monitoring of the Program: To enable DIT to review its progress and
to take appropriate timely corrective measures
•
Assistance to States/SDA: In development of RFP, managing the bid
process, finalizing the Service Level Agreement
Roles…: Service Centre Agency (SCA)
•
SCA is Prime Driver of CSC implementation in a PPP mode
•
Success or failure of Scheme depends on quality of the SCA
•
SCAs are expected to come from diverse segments:
- Corporates, PSUs, SMEs, Training Institutes, NGOs , SHGs, Cooperatives etc.
•
SCA would be supported by NLSA and SDA
•
SCA to identify applications and services, harness SWAN
•
SCA to identify, select and train VLEs, establish the CSC,
supply, aggregate and update content
•
Selection of SCAs should be undertaken with care &
appropriate support from NLSA & DIT as required
Village Level Entrepreneur (VLE)
•
VLEs entrepreneurial ability critical for viability &
profitability of CSC
•
Should have some financial strength entrepreneurial
ability, social commitment & respect within the
community
•
VLE would need to :
- Market Services of CSCs
- Skill upgradation
- Undertake Local level publicity
- Coordinate with local players
- Draw the local community to enable sustained viability
Roles : Special Purpose Vehicle (SPV)
•
SPV is to be set up during the initial implementation phase:
- Will be created as part of CSC framework in-perpetuity
•
SPV would:
- Lay down operating & financial discipline within CSC system
- Provide a framework for collaborative decision making
- Catalyze content aggregation on an on-going basis
- Build a common “Identity” like a common logo, etc.
THANKS