1* !pdf.usaid.gov/pdf_docs/pdacw412.pdf · Organization Structure of ULBs ... (ULBs) in India. Municipalities form ... the learnings arising out of the various individual e-governance

National Mission Mode Project for e-Governance in Municipalities (NMMP) – Design Phase Section I – Programme Design

2

Table of Contents I Introduction and Overview .....................................................................4 1. Project Background ..............................................................................4 2. National e-Governance Plan....................................................................5

2.1. Overview .....................................................................................5 2.2 Programme Components....................................................................6 2.3 Implications for Municipalities NMMP ....................................................6

3. NeGP Institutional Structure ...................................................................7 4. Scope of Work ....................................................................................8 5. Report Structure .................................................................................9 II Municipalities – An Overview ................................................................ 11 1. Introduction..................................................................................... 11 2. Policy Framework .............................................................................. 13 3. Overview of Functions of MoUD.............................................................. 14 4. Organization Structure of ULBs .............................................................. 15 III NMMP - Programme Overview .............................................................. 18 1. Vision, Objectives and Ouctcome of NMMP ................................................ 18 2. NMMP - Coverage............................................................................... 21 3. NMMP - Phased Implementation ............................................................. 27 IV NMMP - Design Imperatives and Strategy................................................. 29 1. Design Imperatives............................................................................. 29 2. Design Considerations ......................................................................... 29 3. Design Strategy ................................................................................. 31 V Programme Design – Key Components ..................................................... 34 VI Programme Design – Institutional Structure ............................................. 37 1. Overview ........................................................................................ 37 2. Details of Institutional Structure - Centre ................................................. 38 3. Institutional Structure - State................................................................ 41 4. Institutional Structure - ULBs ................................................................ 44 VII Programme Design – Funding Assessment and Arrangements....................... 47 1. Overview ........................................................................................ 47 2. Fund Assessment ............................................................................... 49 3. Fund Flow ....................................................................................... 52 4. Fund – Rules of Access......................................................................... 53


3

5. Monitoring and Audit Arrangement.......................................................... 54 6. Preperation of Project Proposals (DPR).................................................... 55 VIII Programme Design – Cost Benefit Analysis ............................................. 58 Annexure 1. Scope of Work – National Implementation Consultants...................... 62 Annexure 2. Scope of Work – State Implementation Consultants.......................... 67 Annexure 3. Scope of Work – Applicator Developer.......................................... 70 Annexure 4. Scope of Work – Facilities Management Services ............................. 74 Annexure 5. Detailes of NMMP Costing......................................................... 76 Annexure 6. Draft MoU ........................................................................... 84 List of Abbreviations .............................................................................. 87


4

I Introduction and Overview 1. Project Background The National e-Governance Plan (NeGP) proposed by the Government of India in year 2003 (http://www.mit.gov.in/plan/about.asp) comprises functional components and Mission Mode Projects (MMPs) to be executed over a four year period. These MMPs comprise projects, which are to be implemented by the line ministries/ departments of the Central Government, State Governments and integrated projects spanning across multiple ministries, departments and agencies. The Mission Mode Project for e-Governance in Municipalities is one of the State Mission Mode projects. Municipalities have significant citizen interactions as they provide a large number of basic civic services to millions of citizens living in urban areas. Hence, introduction of e-Governance, on a massive scale, in municipalities would lead to better services and “good governance”. It is also envisaged that the NMMP would also provide a major fillip to the urban reform programme that has been initiated by the Ministry of Urban Development, GoI. MoUD, GoI is the line ministry responsible for framing the broad policies and framework for the working of Urban Local Bodies (ULBs) in India. Municipalities form the third-tier of Government and are mostly run by an elected body under legislations framed by the State Governments. MoUD is the line ministry responsible for the conceptualization, design and overall implementation of the NMMP. The vision for the National Mission Mode Project for e-Governance in Municipalities (NMMP) is to leverage the ICT opportunities for sustained improvement in efficiency and effectiveness of delivery of municipal service to citizens. In order to effectively conceptualize, design and implement the NMMP, MoUD and Department of IT (DIT), GoI wish to put in place an institutional structure that would specifically assist in the implementation of the NMMP under NeGP. USAID, as part of its Indo-USAID FIRE (D) project, has been assisting MoUD in this regard. As part of this process, an assessment study was undertaken to amalgamate the learnings arising out of the various individual e-governance initiatives in seven ULBs spread across four Indian States and provide a guide for the conceptualization of the NMMP. The study also highlighted the need for undertaking a comprehensive design study. With this background and in order to comprehensively conceptualize, design and implement the NMMP, Ministry of Urban Development and Department of IT (DIT), GoI supported by Indo-USAID FIRE (D) had appointed PricewaterhouseCoopers to help


5

define and design the overall framework of implementing NMMP including the scope and institutional mechanism. Assignment Objectives: As Stated above, M/s PricewaterhouseCoopers Pvt. Ltd. (PwC) has been appointed by the Indo-USAID FIRE (D) Project on behalf of MoUD and DIT to carry out an overall programme design for the NMMP. The key role of the Design Phase consultants has been: • To help MoUD prepare a project proposal for implementing the Municipality Mission

Mode Project (MMP) as part of the National e-Governance Plan (NeGP) • To define the scope of the project, • To aid State Governments/ municipalities in developing detailed proposal by

providing guidance on key aspects of implementing e-Governance such as technology, capacity building, implementation strategy, software selection etc

2. National e-Governance Plan 2.1. Overview The National e-Governance Plan (NeGP) proposed by the Government of India comprises 10 functional components and various Mission Mode Projects (MMPs) to be executed over a four to five year period. MMPs comprise of projects which are to be implemented by the line ministries/departments at the central government, State governments and integrated projects spanning across multiple ministries/ departments/agencies. NeGP is envisaged as a centralized initiative with decentralized implementation. Some of the specific aspects of framework of NeGP that impact the overall design of NMMP include: • Core Policies – As part of NeGP, standards and guidelines are being proposed

across key e-Governance areas such as technology, local language, gateways etc. Accordingly, design of NMMP would need to be in line with those proposed under NeGP

• Core Infrastructure – As part of the programme, most State governments are setting up 2mbps connectivity upto the block level, State Data Centre and Common Service Centres (CSCs). This common infrastructure would not only allow implementation of centralized application architecture, but would also have impact in bringing down individual project cost.

• Institutional Structure – Recently, capacity building guidelines have been issued under NeGP that provide for creating institutional structures at State and department level to enable States to participate in NeGP. The institutional arrangements proposed under NMMP cannot be in variance with these arrangements.


6

2.2 Programme Components In its current form, NeGP consists of various components and MMPs, highlighted in Figure 1 below:

Figure 1: National e-Governance Plan: Coverage and Components

As indicated, NeGP in its current form consists of 10 functional components and 25 Mission Mode Projects (MMPs) to be executed over a four year period. An Apex committee under the Cabinet Secretary is already in place for providing the strategic direction and management oversight. A formal structure to support the Apex committee is currently under formulation. MMPs comprise projects that are to be implemented by: • Line ministries/departments at the national level, • State departments, and • Integrated projects, which may span multiple ministries/departments/agencies. A high level committee – Apex committee (constituted under Cabinet Secretary at the Centre) has been constituted to provide policy direction and oversee the NeGP. 2.3 Implications for Municipalities NMMP Implications of the National e-Governance Plan (NeGP) for the NMMP flows from the fact that it is a Mission Mode Project (MMP) under the NeGP. Hence, the NMMP has to adhere to the policies and overall objectives of the NeGP.


7

The policies and objectives of the NeGP were designed and developed primarily as a guiding star and to provide consistency across MMPs. These objectives, thus, have major implications for the design of the NMMP. Some of the most important ones are: • Focus on citizens and service delivery and not on computerization • Leverage on core infrastructure rather than create separate infrastructure thus

bringing down the overall cost • Core standards to be adopted thereby ensuring applications and projects can talk

to each other “interoperable” • Project to be implemented under a mission mode with clearly identified project

champions leading the initiatives • Financial sustainability of the MMP at the project (i.e. ULB) level. Sustainability

implications would require the assessment and implementation of PPP models • Finalization and adherence to service levels. The implications of this would be

seen in the extent of BPR (business process re-engineering) required and the kind of monitoring and evaluation module to be developed.

3. NeGP Institutional Structure NMMP is a State Mission Mode Project to be coordinated by the MoUD and would require the leadership and support of the central ministry. Under the NeGP guidelines, implementation of a comprehensive institutional structure has been proposed to help in the smooth implementation of MMPs. Some of these have important implications for the Design Phase report and these are as described below. All NeGP MMPs to be implemented by State Governments would also require the leadership and support of the Chief Minister of the concerned State. An advisory council could be set up under the Chief Minister, to provide direction to e-Governance in the State. To assist the advisory council, the State Government is required to constitute a high level committee – State NeGP Apex committee to provide policy direction and oversee the State e-Governance program. This committee shall be under the chairpersonship of the Chief Secretary. The Secretary (IT) or any other secretary nominated by the State government and responsible for e-Governance is expected to be the convener member for the committee. State e-Governance Mission Team (SeMT) The SeMT would be responsible for providing an overall direction, standardization and consistency to the program. All interdependencies, overlaps, conflicts etc. across projects as well as core and support infrastructure shared across several projects would fall under the purview of this group. However, only the State level Apex committee would have the power to issue directions to any department. The SeMT


8

would also function as the secretariat for and full time internal advisory body to the State Government/NeGP State Apex Committee in undertaking e-Governance projects. Project e-Governance Mission Team (PeMT) Various departments of the State Government taking up e-Governance projects would require a full time dedicated Project e-Governance Mission Team (PeMT). This team would function as the secretariat reporting to the project leader. This team would oversee project execution and would manage implementation and deal with technology, process and change management related issues. This team would also manage outsourcing tasks like: • Preparation of the project proposals • Management of outsourcing activities such as for Business Process Re-engineering

(BPR), change management, financial Modeling for PPP, system design and architecture etc.

• Project Management/Monitoring etc. • Training • Procurement of Hardware, Software, Networking etc. and • Data entry. As several of these tasks would be undertaken by various projects running in the State, NeGP guidelines suggests that PeMT should work in close coordination with SeMT and that it would be helpful to take advice and support from SeMT time-to-time. 4. Scope of Work The scope of work1 for the project, as defined by Indo-USAID FIRE (D) Project is segregated into four distinct areas relating to the following tasks:

1. Designing the functionality of e-Governance modules and BPR 2. Establishing data standards and conventions 3. Designing e-Governance architecture 4. NMMP program implementation and management.

Highlighted below are some of the important elements of the overall design of the MMP that are part of the scope of work for the Design Phase. • Coverage of the NMMP to include the following nine services:

o Property Tax, o Accounting, o Water Supply and Sewerage, o Birth and Death, o Building Plan Approval, o Health Programmes, o Procurement and Monitoring of projects. o Personnel Management System, and

1 It may be noted, that the mentioned scope of work is a summary prepared by PwC of the original scope of work


9

o Citizens’ Grievances Monitoring. • Development of an overall e-Governance strategy for the NMMP • Development of the functionality requirements to enable e-Governance application

development for municipalities/ULBs across the above nine selected services • Approach for integrating existing e-Governance Initiatives in municipalities with

those proposed under the NMMP • Development of clear objectives/service levels for adoption by States to

effectively monitor implementation through appropriate mechanisms such as MoUs • Suggestions on opportunities for process improvement across the nine identified

areas listed above • Establishing data standards and conventions for data/database, adoption of local

languages, system integration; guidelines for - security, privacy, application architecture, Business Continuity Planning (BCP); recommended technology architecture, etc for the nine service area

• Designing a model architecture including for application software, infrastructure, hardware and connectivity

• Development of appropriate framework for Public-Private-Partnerships for sustainability

• Designing of program implementation and monitoring framework • Designing of appropriate framework for review of project proposals received by

MoUD, model implementation (organization) structure at States, project management tools and mechanisms, change management, monitoring and evaluation framework, knowledge management and capacity building

• Suggest institutional arrangements for scaling up the initial rollout in 35 million plus cities as part of National Mission Mode Project.

It may be noted that the above is not a comprehensive listing of the scope of work, as detailed by Indo-USAID FIRE (D) Project, rather a summary prepared by PricewaterhouseCoopers. 5. Report Structure The report contains recommendation for the Design Phase put together as part of our mandate to provide support to Ministry of Urban Development (MoUD) and Department of Information Technology (DIT) in the development of the design for the National Mission Mode Project for e-Governance in Municipalities (NMMP). The report has been presented in four sections (excluding the executive summary): Executive Summary of the report provides a summary of our recommendations pertaining to all the tasks specified in the terms of reference. The executive summary has been specifically written so that it can be readily be used as a draft for preparing the scheme guidelines of the NMMP.


10

Section 1 of the report includes the background of the project, overview of the functions of municipalities and the programme design Section 2 of the report includes the functional view of the nine modules – approach followed, their coverage, guidelines for BPR (business process re-engineering) etc Section 3 of the report includes the e-governance architecture and recommendations on standards and guidelines. Recommendations cover the areas of – deployment view and architecture, testing framework, data centre requirements, data maintenance procedures, scalability requirements etc Section 4 of the report includes recommendations on the implementation strategy (covering capacity building, change management plan, monitoring and evaluation framework and PPP options) and the way forward.


11

II Municipalities – An Overview

1. Introduction The Ministry of Urban Development (MoUD), is the Apex authority of Government of India (GoI) at the national level, to formulate policies, sponsor and support programmes, coordinate the activities of various Central Ministries, State Governments and other nodal authorities and to monitor the programmes concerning all the issues of ‘urban development and housing’ in the country. The history of urban local self-governing bodies, (commonly called ULBs (ULBs) in India dates back to more than a century. These local bodies are again classified based upon the population (Table 1 and 2 below) into various classes and are also classified as Municipal Corporations, Municipal Council and Nagar Panchayats. The ULBs are governed by the provisions contained in the various State Legislations.

Table1: Urban Agglomerations/Towns by Class/Category: Census of India 2001 Class Population Size No. of UAs/Towns

Class I 1,00,000 and above 393 Class II 50,000 - 99,999 401 Class III 20,000 - 49,999 1,151 Class IV 10,000 - 19,999 1,344 Class V 5,000 - 9,999 888 Class VI Less than 5,000 191 Unclassified 10 All classes 4378

Source: Office of the Registrar General of India. (Population totals for India and States for the census of India – 2001).

The number of metropolitan cities in India as per the last census having million plus population is 35 as per 2001 census. The names of such cities are as follows:

Table 2: Cities having million (+) Population in 2001

Rank Urban Agglomeration/City Population (Lakhs)

1 Greater Mumbai 163.7 2 Kolkata 132.2 3 Delhi 127.9 4 Chennai 64.2 5 Bangalore 56.9 6 Hyderabad 55.3 7 Ahmedabad 45.2 8 Pune 37.5 9 Surat 28.1 10 Kanpur 26.9 11 Jaipur 23.2 12 Lucknow 22.7 13 Nagpur 21.2


12

14 Patna 17.1 15 Indore 16.4 16 Vadodara 14.9 17 Bhopal 14.5 18 Coimbatore 14.5 19 Ludhiana 14.0 20 Kochi 13.5 21 Visakhapatnam 13.3 22 Agra 13.2 23 Varanasi 12.1 24 Madurai 11.9 25 Meerut 11.7 26 Nashik 11.5 27 Jabalpur 11.2 28 Jamshedpur 11.0 29 Asansol 10.9 30 Dhanbad 10.6 31 Faridabad 10.5 32 Allahabad 10.5 33 Amritsar 10.1 34 Vijaywada 10.1 35 Rajkot 10.0

Total 1078.8 Source: Office of the Registrar General of India.

(Population totals for India and States for the census of India – 2001).

Decentralization of powers to these local bodies and empowering them to exercise control over their jurisdiction has led to a consistent demand regarding the integration of affairs of the local bodies with the State. In response to this, the 74th Constitutional Amendment was passed in 1992 and integrated various aspects such as municipal finance in alignment with devolution of powers to ULBs. These amendments provided rural and ULBs with a constitutional status that they had previously lacked and reinforced this status by mandating regular elections to locally elected bodies. Beyond this, the amendments called on—but did not explicitly require—individual States, the highest tier of sub-national government within India’s federal setup, to enact legislation to devolve powers and resources to local bodies so as to enable the latter to function as institutions of self-government—to play a central role in the provision of public services, the creation and maintenance of local public goods, and the planning and implementation of developmental activities and programs to alleviate poverty and promote distributive equity.


13

2. Policy Framework The working of the various municipalities adheres to the various acts of individual State legislatures. However, the structure and basic functioning of all ULBs are guided by the basic tenets in the 74th Constitutional Amendment Act, which are as follows: • Urban local bodies, to be known as municipal corporations, municipal councils and

Nagar Panchayat depending on the population shall be constituted through universal adult franchise in each notified urban area of the country

• These shall be constituted for a period of five years and if dissolved earlier, an election to reconstitute it shall be completed before the expiration of a period of six months from the date of its dissolution

• Not less than one-third of total number of seats in each urban local body shall be reserved for women

• The Legislature of a State may by law entrust on these bodies such power and authority as may be necessary to enable them to function as institution of local self government, including those listed in the Twelfth Schedule

• The Twelfth Schedule of the Constitution lists the functions of the ULBs • In order that the ULBs can perform the functions assigned to them, the Legislature

of a State shall assign them specific taxes, duties, tolls and levies and authorize them to impose, collect and appropriate the same

• Each State shall also constitute a finance commission, which shall review the financial position of the ULBs and recommend the principles, which should govern the devolution of resources, including grant-in-aid from the consolidated fund of the State of these bodies

• The superintendence, direction and control of the preparation of electoral rolls for, and the conduct of, all elections to the ULBs shall vest in the State Election Commission

• In each district, a district planning committee shall be constituted to consolidate the plan prepared by the urban and rural local bodies

• Similarly, for each metropolitan area, a metropolitan planning committee shall be constituted to prepare a development plan for the metropolitan area as a whole.

All State Governments have either enacted new municipal laws or amended their existing laws to conform to the 74th Amendment Act, 1992. All the States (except Arunachal Pradesh) have constituted State finance commissions and most of the commissions have submitted their reports to the State Governments, recommending significant devolution of resources to the ULBs. The national Eleventh Finance Commission has also recommended grant-in-aid from the central Government to the ULBs. In addition to this, the MoUD is attempting to reform and modernize the working of the various Municipalities across India. In this regard, it issued the ‘Model Municipal Law’ – a concept paper outlining a set of policy postulates that offer guidelines for State Governments to adapt to their specific conditions. The major focus areas of this


14

initiative have been accounting reforms, resource mobilization and Private Sector Partnership. This initiative is expected not only to improve the capabilities of ULBs to leverage public funds for development of urban sector but also will aid in creating an environment in which, municipalities can play their role more effectively and ensure better service - delivery. In addition to this, the following model legislation have been prepared and circulated to all the State Governments to help them formulate their respective legislation to bring about uniformity in various State laws and also to simplify the regulations: • model rent control legislation • model apartment ownership legislation • model property regulation legislation • model urban and regional planning and development legislation • model legislation regarding housing cooperatives and • model chapter on property tax for inclusion in the State municipal laws. The MoUD has also envisaged a series of reforms in order to create an enabling legal environment for speedier implementation of development schemes and for attracting larger participation of private sector. Some of these proposals include: • Amendment of Land Acquisition Act, 1894 to speed up the process of acquisition

and to delink the process of taking over possession of land from the process of determining compensation,

• Amendment of the Transfer of Property act, 1882 to bring the concept of categorization of mortgages in line with recent practices of housing and financial institutions, in particular English mortgage and equitable mortgage, lay down uniform mortgage documents; introduce speedy and predictable system of foreclosure of mortgages and to give legal shape to rights of owners in multi storied apartments, and

• Amendment of the Indian Stamp Act, 1899 and the Indian Registration Act, 1908 to delink the process of registration from the payment of stamp duty, to liberate the registration process from the requirement of various no objection certificates and to rationalize stamp duties on various instruments.

3. Overview of Functions of MoUD Broad functions allocated to MoUD are listed below: • Managing properties of the Union, whether lands or buildings • All Government civil works and buildings including those of Union Territories,

excluding roads and excluding works executed by or buildings belonging to the Railways, Postal & Telegraph and the Department of Atomic Energy (Parmanu Oorja Vibhag), and the Department of Space (Antariksh Vibhag)

• Horticulture operations • Central Public Works Organization


15

• Administration of Government eStates including Government hostels under the control of the Ministry. Location or dispersal of offices in or from the metropolitan cities

• Administration of the Requisitioning and Acquisition of Immovable Property Act, 1952 (30 of 1952)

• The Public Premises (Eviction of Unauthorized Occupants) Act, 71 • Stationery and printing for the Government of India including official publications • Planning and coordination of urban transport systems, with technical planning and

road based systems being subject to items 22 and 23 under the Ministry of Surface Transport (Jal-Bhootal Pariwahan Mantralalya) and technical planning of rail based systems being subject to item 1 and 2 under the Ministry of Railways ( Rail Mantralaya), Railway Board ( Rail Board)

• Town and country planning: matters relating to the planning and development of metropolitan areas. International Cooperation and Technical Assistance in this field

• Development of Government colonies • Water supply (subject to overall national perspective of water planning and

coordination assigned to the Ministry of Water Resources), sewage, drainage and sanitation relating to urban areas and linkage from allocated water resources. International cooperation and technical assistance in this field

• The Central Council of Local Self Government • Public sector projects falling under the subject including in this list, except such

projects as are specifically allotted to any other Department • The Urban Land (Ceiling and Regulation) Act, 1976 (33 of 1976) • All matters relating to planning and development of the National Capital Region

and Administration of the National Capital Region Planning Board Act, 1985(2 of 1985)

• Matters relating to the Indian National Trust of Art and Culture Heritage (INTACH) and

• Matters of the Housing and Urban Development Corporation (HUDCO) relating to urban infrastructure.

4. Organization Structure of ULBs Civic governance in many States comes under the Ministry of Municipal Administration and Urban Development. It is the governing body comprising of following line departments: • Municipal Administration and Urban Development Department (MA&UD) • Directorate of the Municipal Administration (DMA) • Public Health Engineering Department (PHED) • Town and Country Planning Department (TCP) • Urban Finance and Infrastructure Development Corporation • Municipal Corporations • Urban Development Authorities and • Metropolitan Water Supply and Sewerage Board (MWS&SB).


16

While the overall policy making for the ULBs is with the State Ministry, the regulation and developmental functions lie with the DMA. The ULBs can be categorized into Municipal Corporations, Municipal Councils and Nagar Panchayats. A typical organizational structure of MA & UD department is depicted in Figure 2 below

Figure 2: A Typical Organizational structure of MA&UD

Illustrative only: May vary from State to State

The ULBs consist of deliberative wing and the executive wing. While the deliberative wing of the ULB consists of elected members, the executive wing is headed by the Commissioner. The role of deliberative wing is mainly confined to governance of the ULB and laying down of policies, guidelines, according approvals etc. for the various developmental programmes. It is the executive wing, which is mainly responsible for the administration, regulatory and developmental activities being carried out by the civic body. Figure 3 given overleaf is a typical organizational structure of the executive body in an ULB. However the levels of hierarchy and sections may vary depending on the grade of the ULB as some functions may be clubbed for operational convenience and may be discharged by a single functionary/section.

(This space has been intentionally left blank)


17

Figure 3: Typical Organization Structure of ULB

Above figure 3 indicates the ULB sections and the organization structure of the ULB shaded in different colors.



18

III NMMP - Programme Overview 1. Vision, Objectives and Ouctcome of NMMP The key objective of defining the vision, objectives and goals is to build a common vision of success amongst all stakeholders and ensure the institutional and implementation arrangements support that strategy. Taking the broad requirements prepared by MoUD for the NMMP as the base, mentioned below are the key objectives that may be considered as part of the NMMP design. • Citizens: to get timely services and correct information about the performance of

the ULB, ability to provide feedback on the quality of services received and methods to participate in matters concerning them;

• Executives/Staff of ULB: to have proper operating guidelines, appropriate technology/infrastructure, efficient processes, quality training mechanisms, effective supervision to carry out responsibilities and correct and complete information for decision making;

• Service providers/suppliers: to have a clear-cut and quality service delivery mechanism and payment arrangements;

• Funding agencies/NGOs/Partners/Media: to have correct, updated and reliable information on the performance of the ULB; and

• Policy makers: to have adequate and appropriate information to take decisions related to appropriate policies, guidelines, institutional mechanisms, technology, infrastructure, and resources, including finance for achieving the objectives of various plans and programmes.

To measure the success of NMMP, detailed outcome analysis for the NMMP has been undertaken using the logical framework approach. The table below provides a summary of the same.

Programme Outcome Analysis Vision: To leverage the ICT opportunities for sustained improvement in efficiency and effectiveness of delivery of municipal service to citizens The NMMP would assist the municipal bodies across India to improve service delivery mechanism, achieve better information management & transparency and ensure utmost citizen’s involvement in participative governance

Key Objectives Key Goals Verifiable Indicators Means of Verification 1. Financial

Sustainability

Revenue enhancement

Use of PPP

Growth in municipality own revenues by at least 25% on a year to year basis for first three years

Financial statements of the municipality

2. Enhanced

Transparency

Effective citizen

redressal system

80% resolution of

grievances received

Government order


19

and Accountability

Operational right

to information

through the Grievances Redressal Model within the defined service level

Deployment of a system for meeting the requirements contained in the Right to Information Act

Banning of manual records.

System audit.

Key Objectives Key Goals Verifiable Indicators Means of Verification

3. Process Reform

Online financial and management information system

Implementation of

standards and guidelines suggested in the design document.

Accrual based accounting system

Legislative changes.

System audit Government order

4. Clearly Defined Citizen Services and Service Levels

Web Site / Common State wide portal for municipalities

Availability of

forms, citizen charters etc

Online submission

of forms Birth and death

registration - Registered Hospitals - Others Calculation and

payment of property tax

Payment of utility

bills – water supply and sewerage

Updated at least every 15 days, time stamp

Online, updated

within 24 hours of changes in forms, rules etc, if any

Online, immediate

acknowledgement Online and through

service points (< 15 minutes)

< 5 days Online tax calculator < 15 minutes through

identified service points

Online through e-Biz portal

e-Bills to be available

online; Payment online < 15 minutes through

identified service points

Time stamp monitoring and SLA with hosting agency

SLA with hosting

agency System audit

System audit –

monitoring and evaluation framework

System audit –


System audit –



20

Building approvals

-Residential -Commercial and others Health programme

- License (New) - Renewal

Financial Accounting System

Development

projects - Approved projects and fund allocations by wards - Physical and financial progress - Request for public comments before closure e-Procurement

Grievances

handling -Acknowledgement - Resolution monitoring.

<7 days <15 days

< 5 days <30 minutes

Double accounting,

finalization of A/Cs within 3 months

Online & at service

centres , within 1 day of project approvals

Online & at service centres, updated within 15 days

Online & at service centres, 7 days after completion

Integration with State

e-procurement module Immediate (through

service points or online)

Online (<7 days for all other than specified for which it would be <1 month.

System audit –


System Audit –


Date of finalization

of accounts System Audit –

Monitoring and evaluation framework

Online

System audit –

monitoring and evaluation framework.


21

2. NMMP - Coverage 2.1 Coverage of Cities NMMP, in its current form, envisages covering all ULBs in class 1 cities (423 in total). MoUD will eventually expand the coverage beyond the class 1 cities over a period of time in different stages. As a first step (Stage 1), 423 class I cities in the country are proposed to be covered over a period of five years. These cities cover over 55% of urban population of the country. The rationale for choosing 423 class I cities (as first stage) for introducing e-Governance in municipalities include the following: • There are over 4000 urban centres in the country and covering all of them within a

period of 5 years (NeGP timeframe) would pose major technical, financial and managerial challenges

• Including larger ULBs would allow maximum coverage within a shorter time span • Larger ULBs would allow designing and implementation of new approaches with

respect to Public-Private-Partnership (PPP), capacity building, training etc. The focus of the first phase (year 1) of implementation within NMMP would be to cover 35 cities, having population of over 1 million, spread across 17 Indian States. The scheme envisages support to other States not within the above 17 within the universe of 423 schemes within first phase based upon specific request and commitment shown by the State. 2.2 Coverage of Modules In order to achieve its vision and objectives, NMMP envisages implementation of various application modules2 (refer table overleaf) covering the following services/management functions within ULBs: • Payment of property tax, • Building plan approvals • Water supply and other utilities • Registration and issue of birth and death certificate • Procurement and monitoring of projects • Heath programme • Accounting system • Grievances and suggestions and • Personnel Information System.

2 The services mentioned are based upon the scheme finalized by MoUD in its note to the Planning Commission highlighting its coverage of the Municipalities NMMP


22

Module

Property Tax Property tax is one of the main sources of revenue for the ULB. This module covers all the aspects of assessing the property for tax. Residential and commercial properties, situated within the limits of ULB, are to be assessed for tax. Based on such assessments, all the assesses are expected to pay the property tax. The information regarding all the new constructions, existing construction and other extensions/ modifications, if any, will be provided by the Town Planning Department for tax assessment. The main features of the property tax module include

• Assessment of the building for property tax based on the parameter such as residential status, annual rental value, rates of taxes, depreciation and the age of the building

• Serving of the demand notices for assessments and collection of taxes • Acceptance, disposal and monitoring of the revision petitions received • Monitoring of the appeals filed • Collection of the taxes and maintenance of appropriate records etc

Building Permissions

In the local bodies, the town planning section issues permission for construction of buildings, based on specific set of rules and regulations. The building permission module facilitates quick processing, disposal of building plan permissions, standardization of collection of building fee & other charges, to automate the technical scrutiny, effective monitoring of file processing and have transparency, accountability and accessibility to the information and status of the building applications, retrieval of data at any future date The main features of the building permissions module are

• Approval of building proposals of various types and nature of buildings • Approval of layout proposal • Processing and disposal of Government references, court cases, Chief Minister

cell reference, Lok Ayukta references etc. • Planning and implementation of developmental activity such as road widening,

junction improvements, development of parks, play grounds, subways, parking lots, bus bays etc

• Calculation of various fees such as admission fee, developmental charges, regularization charges, building license fees, scrutiny fees, demolition charges etc

• Collection of the fees and maintenance of appropriate records

Water Utility and Tax

The water utility module deals with • Receipt of application, inspection, processing and issue of water tap connection • Levy of tax for the water used based on the type of connection • Issue of demand notices • Collection and monitoring of taxes and regularization charges • Disconnection in cases of non-payment and illegal connections

Births and Deaths

The registration of birth and deaths is one of the major functions of public health section. The births and deaths, which take place in the hospital are recorded and reported to the municipalities. For non-hospital events, the concerned parties can make necessary applications to the municipalities. Delay in registration of the events requires clearances from various authorities. Once the event is registered, ULB issues the necessary certificate. In the case of non-hospital event, the certificate is issued after necessary scrutiny and inspection.


23

Module

At any given point of time, corrections to birth/death details can only be done by the Registrar of births & deaths. Necessary records are maintained by the health section

Projects and works

The municipalities execute various maintenance and developmental work through the engineering wing. All civil engineering works such as building of roads, bridges, culvert, storm water drains, buildings, parks and playgrounds etc. are carried out with proper planning, authorizations and allocation of the funds. The main features of this module are

• Preparation of cost estimation for the projects • Assist in preparation of tender document • Monitor the tendering process and award of work • Monitor the progress of work in term of measurements, material issues,

execution time etc. • Monitor the budget allocation and perform a variance analysis • Assist in preparation of the bills • Monitor the bill payments and release of EMDs/Security Deposits

Projects The municipalities assist various departments of the State Government in implementing the departmental schemes for the welfare of the people in the municipalities. The schemes need to be monitored to achieve the desired objective and the fund allocated are utilized for the said purpose The main features of the module are

• Recording and accounting of the grants/funds received for implementation of the schemes

• Preparing of budget for the implementation of the schemes • Allocation of work and fund required for implementation • Recording and accounting for the expenditure incurred for the implementation

of the project • Generating necessary reports needed for monitor the implementation of the

schemes E-procurement

E-Procurement combines the use of Internet technology with procurement best practices to streamline the purchasing processes of the ULBs and reduce costs. The e-procurement module aims to automate the activities related to the procurement of works as well as goods. Under the works procurement the module aims to automate the following functions of the ULBs:

• Creation and approval of indent • Internet enabling of the competitive bidding (tendering) process • Internet enabling of the dynamic pricing (Auction) process • Digital contract management • Supplier registration

Under the goods procurement scenario, the module aims to automate the following functions in addition to those listed above:

• Rate contract management • Online RC catalogue based procurement


24

Module

• Order fulfilment cycle

Trade Licenses

The establishment, such as shops, mills, factories, hotels intending to commence trade, should obtain a trade license from their respective municipalities The main features of trade licenses module are

• Receipt of application for trade license, inspection of the business premises, processing and issue of the licenses.

• Issue of notices for renewal of licenses • Renewal of licenses • Collection of license fee • Closure of licenses • Maintenance of appropriate records

Solid Waste Management

ULB’s employ various methods for removal of garbage and debris under the supervision of health wing. The solid waste is collected and transported to the dumping grounds. As solid waste management involves cleaning, transporting and dumping, this module deals with the following Solid waste Management covering

• Allocation of manpower for sweeping and garbage removal, monitoring and recording of the work executed

• Allocation of the vehicles for garbage removal, monitoring and recording of the movement of vehicles.

• Planning of the resource for effective utilization of manpower and vehicles • Monitoring and recording of the garbage collection and dumping at the dumping

grounds

Vehicle Management covering The transport wing of the municipalities plays a major role in solid waste management apart from providing service to department/ administration. More than 60% of transport activity is allocated for garbage removal. The activity of transport department includes maintenance of the vehicles, allocation of the vehicles, monitoring of the performance of vehicles, procurement of spares, etc. The main features of the sub Module are • Maintenance of the vehicle history • Maintenance of vehicle repair history including third party repairs • Maintenance of supply of fuel, oils and spares • Monitoring of procurement of vehicles, spares and auction of the vehicles.


25

Module

Financial Accounting

The accounting system being followed in Municipalities is different from the normal accounting systems followed in commercial practice. The accounting system is designed to seamlessly record all the financial transactions taking place in various departments of the municipalities The main features of the financial accounting module are:

• Accrual accounting • Assets/Liability recording • To record all receipts from different modes of payment • To record all payments • To generate all records required under the law • To generate statements required by various authorities for budgeting and

decision making • To maintain accounts required under the law

Grievance Redressal

As municipalities provide various public utility services, they receive a large number of complaints / suggestions pertaining to its services. Grievance redressal module is basically meant for redressing the grievances of citizens in a “timely and effectively” manner The main features of the module are

• Registration of the complaint / suggestion • Issuance of acknowledgement • Capturing of status of the complaint till it is resolved • Generation of necessary reports for proper monitoring

Personnel Information System

The employees form a major asset base of all state departments including the municipalities. Efficient and effective utilization of this asset viz. the available human resources, is important to ensure effective administration of these departments. The state Governments, being the single largest employers in most states, recognize the need for an integrated information technology solution to address the needs and streamline its complex and dispersed payroll and human resource management system. The key functions under proposed human resources management system module are

• Recruitments/Appointments • Promotions of non-gazetted staff • Regularization of staff • Department promotional committee meetings • Increments • Seniority matters • Processing of annual confidential reports • Processing of transfer of charge • Probation • Deputations (Foreign/Others) • Compulsory waits • Processing of Leave Travel Concession (LTC) requests • Medical reimbursements • Travel & tour management • Leave Management


26

Module

• Retirements • Resignations • Government provident fund • Processing of bills • Service Register


27

3. NMMP - Phased Implementation The entire Stage 1 implementation under NMMP is to be completed within a period of five years coupled with the need to cover as much population as possible and as early as possible. In the First Phase (Year 1) 35 municipalities have been included. The 35 municipalities have been selected as they have more than 1 million populations and cover a large proportion (approximately 20%) of India’s urban population. The entire NMMP is proposed to be rolled out in five phases/waves as presented below (Table 6). This phasing is largely indicative in nature and has been designed taking into account the following: • The time taken for implementing the various e-Governance modules proposed

under NMMP in ULBs during the initial years would be longer • Managing implementation of larger number of ULBs in the initial years would be

difficult • Implementation during the initial years would provide significant lessons that need

to be replicated as the implementation reaches balance ULBs and thus in the initial years limited number of ULBs should be taken up

• High visibility should be achieved so that enough demand pull for the programme can be achieved

• Year 1: Cities with population more than 10 lakhs • Year 2: Cities with population more than 5 Lakhs and 10% of the balance 354 and • Year 3 to 5: 33% each year of the balance 319.

Table 6: Implementation Phasing Phases ULBs Covered Phase I – 1st Year 35 Phase II – 2nd Year 69 Phase III – 3rd Year 106 Phase IV – 4th Year 106 Phase V – 5th Year 107 Total 423

Table 7 provides an overview of the geographical coverage (in terms of States covered) of the NMMP. The figure below gives a State-wise breakup of the Urban Local Bodies in Class 1 towns (423 in total) covered under the MMP. The NMMP covers all 423 ULBs in the Class 1 towns. Given that the total urban population of India is around 310 million, the MMP, thus, envisages covering almost 56% (around 172 million) of the total urban population of India. MoUD will eventually expand the coverage beyond the Class 1 towns after the completion of the NMMP.


28

Table 7: Break-up of Class I towns across State’s



29

IV NMMP - Design Imperatives and Strategy 1. Design Imperatives It is extremely important that a programme of this magnitude is properly managed. The programme design is based upon the principle hypothesis that MoUD is not the “implementing agency” but a “facilitating agency”. This is because of the fact that each project (implementation at ULBs) within the programme is unique and should develop its own implementation framework suitable for the scope/length of the project and work to be performed. However, MoUD needs to ensure that: • Project aims and objectives and project outcomes are achieved in line with the

overall design at the programme level • Initiatives adhere to a common philosophy, approach to achieving objectives,

schedule & standards • Project work is done within the allocated budget and through leveraging of

institutional and private capital • Project partners and members of the project team have well-defined roles and

responsibilities • There exist effective methods for planning, communicating, and decision making. • Assistance is offered at a national level for capacity building of departments for

sustainability of initiatives • A coordinated and cost-effective implementation is enabled by optimizing overlaps

and development of common infrastructure to the extent possible • A mechanism for reviewing project progress and resolving issues is institutionalized • A forum for different stakeholders is established to continuously share knowledge

and learnings. 2. Design Considerations In recommending the programme design for NMMP, the following key considerations have been taken into account: 1. Implementation Framework of the National e-Governance Plan (NeGP) – The

NMMP is being undertaken under the overall NeGP of GoI. NeGP programme has a number of programme components that have bearing on the overall programme design of NMMP. While, there are many components of NeGP that impinge on the overall NMMP design, the key elements are as below. • Core Policies – As part of NeGP, standards and guidelines have been proposed

across key e-Governance areas such as technology, local language, gateways etc. Accordingly, design of NMMP would need to be in line with those proposed under NeGP

• Core Infrastructure – As part of NeGP, most State governments are setting up 2mbps connectivity upto the block level and data centre at the State level.


30

This common infrastructure would not only allow implementation of centralized application architecture it would also have impact in bringing down individual project cost

• Institutional Structure – Recently capacity building guidelines have been issued under NeGP that provide for creating institutional structures at State and department level to enable State to participate within NeGP. The institutional arrangements proposed under NMMP cannot be in variance with these arrangements.

2. Urban Development Responsibilities in India and Implications of 74th

Constitutional Amendment Act – After the passing of the 74th Constitutional Amendment Act the administrative structure of India is divided to a 3-tier setup. The constitution of India has assigned the subjects pertaining to the urban areas to the various State legislatures. Therefore, the complete administration of the Municipalities lies with the various State legislatures. However, the central Ministry of Urban Development has administrative power of legislations such as the 74th Amendment Act. This has important implication for design and include: • The programme ownership would have to rest with State Governments and

ULBs • MoUD to play the role of strategic advisor – formulation of strategy and

monitoring of benefits and • The programme should be run on a philosophy of “centralized planning and

decentralized implementation”. 3. Sustainability – Very often a number of very well designed project fail because of

issues of sustainability. These issues need to be understood and defined at three levels – institutional, financial and managerial. Special attention has therefore been taken in defining an institutional response to the issue of sustainability.

4. “Outcome” oriented approach - In recent times, GoI has laid considerable stress

on designing programmes that focus on outcomes and not on outlays. This is in line with widely acceptable programme design principles for development projects. This approach has particular significance for NMMP. By clearly defining and monitoring outcomes MoUD can hope to achieve the objectives of the programme, even though it has limited control over the implementation.

5. Linkage to National Urban Information System (NUIS) – MoUD has recently

initiated a holistic proposal to develop National Urban Information System (NUIS), which seeks to develop a comprehensive information system in ULBs. NUIS has linkages to the NMMP, especially with respect to information system proposed to be created under the e-Governance programme.

The implications of the above are reflected in the strategic elements of the programme design detailed in the next section.


31

3. Design Strategy Based upon the design considerations discussed and the draft scheme prepared by MoUD, highlighted below are strategic element of the overall NMMP. These elements in turn define the recommendations contained in the design report. The elements include: • State roadmap for e-Governance in municipalities – As part of the NeGP

initiatives almost all States and UTs in the country are currently in the process of preparing a comprehensive e-Governance Roadmap3. It is important to ensure that the NMMP is integrated in the State e-Governance roadmap in terms of strategy, priority, institutional arrangements and technology. Accordingly, the Design Phase report recommends State to prepare a State e-Governance roadmap for Municipality as the first step towards implementing the NMMP. The roadmap to be defined taking into account the guidance provided in this design document would help bring all ULBs in the State to a common understanding with respect to the key elements of the programme i.e. technology, portal strategy, business process reengineering, funding requirements, capacity building requirements, legislative changes, etc

• Emphasis on project appraisal and project report preparation – Given the fact

that NMMP needs to be implemented in a decentralized mode, MoUD needs to ensure that project proposals are scrutinized in detail so as to ensure that the objectives of the programme and recommendations contained in this design document are adequately addressed and detailed in the project proposal. Towards this end a Municipalities Programme Management Unit (MPMU) has been proposed that can be supported by the implementation phase consultants

• State Wide Approach to Implementation – While, the NMMP provides for e-

Governance in Municipalities, State Governments have a key role to play. State Government support in undertaking legislative reforms, project proposal review, project monitoring, financial support etc are important for effective implementation. Further, the design document recommends an important role of the State in identifying and implementing common application software so as to minimize cost and reduce implementation time frame. It is in this background that the Design Phase report recommends a strong institutional structure at the State re-enforced by a tripartite agreement/MoU between State, ULBs and MoUD. It has

3 It may be noted that under NeGP most Indian States and UTs have already initiated the process of preparing a State e-Governance Roadmap that is likely to address issues relating to State IT architecture, portal strategy, capacity building, prioritization, standardization etc. The development of the State e-Governance Roadmap is being coordinated by the State IT Department. The State e-Governance Roadmap for Municipality would be driven by the State Urban Administration Department through the State Implementation Consultant / PeMT and would ensure that the implementation of the NMMP in the State takes into account the requirement of the Design Phase Report (MoUD Scheme) and is in line with the State wide e-Governance roadmap already initiated.


32

been suggested that while MoUD can enter into a single agreement with the concerned States, the State Government needs to enter into a back to back agreement with the ULBs desirous of participating in the scheme before funding under NMMP can be agreed to.

• Lifecycle approach to costing – There are umpteen examples of projects failing

because operation and maintenance cost have not been considered. This is especially true for IT projects, which have short life cycle (5 years) and wherein operation and maintenance cost over a five year period can be more than the capital cost. Accordingly, the Design Phase report recommends that project costing and funding arrangement be agreed for a cost consisting of capital cost and 5 year operation and maintenance cost

• Performance based release - Focus and adherence to outcomes can only be

achieved in case funds allocation and release are linked to specific and measurable milestones. To address this, Design Phase report recommends a strong monitoring and evaluation framework to be monitored by the Municipalities Programme Management Unit

• Competition for funds – As significant funds are proposed under NMMP, MoUD can

consider creating competition between participating States and ULBs based upon interest shown by States for pursuing reforms in the urban sector. The Design Phase report recommends that the fund allocation to State/ULBs should not be earmarked or automatic, but should be based upon initiative shown by State Governments, e-readiness of the State/ULBs, preparation of a comprehensive project proposal, agreement to initiate urban reforms, etc

• Independent assessment – To effectively implement a result based monitoring and

evaluation framework, it is important to develop a system for independent evaluation of the project progress and impact assessment. The Design Phase report recommends that this be one of the important responsibilities of the MPMU through the implementation consultants

• Implementation in waves – Most ULBs and State Governments have had limited

success in implementing large and complex e-Governance Initiatives because of lack of managerial and technical capacities. Accordingly, the Design Phase report recommends that modules proposed under NMMP be implemented in waves rather than all in one go. This is likely to significantly improve the chances of successful implementation

• Capacity building and training – The need and importance for capacity building

cannot be emphasized enough. This is not only required for implementing the project but more importantly for sustaining the initiative. The Design Phase report endorses the recommendations presented by National Institute of Smart


33

Government (NISG) and Centre for Good Governance (CGG) with respect to the strategy proposed for building capacity and training under NMMP

• Public awareness and communication – One of the important strategies for

ensuring long term success of projects and for ensuring the project success is not dependent upon “key champions” is to create enough demand pull that forces institutional support. The Design Phase report stresses on the need for having a comprehensive awareness and communication strategy aimed at the citizen conveying the benefits of the programme.

Note: There can be a situation wherein, a State may have already initiate a Statewide rollout of e-Governance initiative in ULBS across the State and may want assistance (funding) under NMMP. In this situation, the State and MoUD would need to take a joint decision with respect to the extent of funding that can be provided to the State, give the fact that implementation arrangement (relating to the application vendor, State Implementation Consultant, module functionality etc.) are likely to be at variance with the overall programme design of the NMMP. In such a situation, it is recommended that in any decision that is taken on a case to case basis the following should be ensured: • MoUD funding should not be towards reimbursement of expenses already incurred • The existing institutional arrangements should be allowed to continue as long as

the roles envisaged in the NMMP programme design are being met by the existing arrangement

• The State / ULBs agree to meet the overall outcomes and service levels of the NMMP


34

V Programme Design – Key Components

There is no “one size fits all” when it comes to design and implementing a program. Table 8 summarizes the key components of the programme design that have been considered in arriving at the recommendations contained in this Design Phase report. Addressing these components is important for implementation of a programme of this magnitude and complexity. The objective of identifying these components is to ensure that the project implementation and management framework suggested as part of Design Phase report adequately addresses these components. These components have been grouped and presented into four areas relating to: • Strategic • Tactical • Organizational • Technology.

Table 8: Programme Design – Description of Key Components

Area Component Key Recommendation

Sustained Government and political support – especially at the State and ULBs

The institutional structure proposed at centre/State and ULBs envisages role of elected and administrative leadership associated with municipalities at the strategic decision making level

Effective organizational change management

A large amount of funds have been allocated towards this area through the creation of permanent/long term additional capacities within the existing set-up. It is proposed that activities associated with capacity building and change management should be initiated even before formal project approvals are provided

Adequate project team composition

Capacities at all levels of project organizations – programme, sub-programme and project have been strengthened by the creation of external support teams

Good scope management

A strong project monitoring and evaluation framework is proposed, which is supplemented through clear definition of programme and project goals and targets

Strategic

Comprehensive business re-engineering

Guidelines for undertaking reform and process reengineering have been suggested as part of the Design Phase document. In addition, a reward and


35

punishment mechanism has been suggested to encourage project owners to meet the objective of the NMMP

Adequate project champion role/dedicated staff

At each level of Governance –centre, State and ULB a nodal “champion” is proposed to be identified. It has also been suggested that the stability of tenure be provided to the champion to ensure smooth implementation of the project

Trust between stakeholders; User involvement and participation

All units in the institutional structure (irrespective of the level) mandated to provide leadership and vision including representation of stakeholder that are most affected by the decision of the committee. This approach would ensure that views of all stakeholders are taken into account and appropriately addressed

Area Component Key Recommendation

Dedicated and appropriate usage of consultants/experts

Selective and appropriate use of external consultants has been proposed to address capacity constraints without adding long term staff costs.

Adequate training program

It is suggested that 5% of time of key stakeholders under NMMP is spent on training

Strong communication inwards and outwards

Responsibility for awareness and communication through knowledge management has been clearly identified in the institutional structure proposed

Organizational

Formalized programme plan/schedule

Formal monitoring and evaluation framework for NMMP has been recommended on the basis of a formalized programme and project plan and schedule

Reduce overall and individual trouble shooting

A detailed guidance note has been prepared as part of the Design Phase report to aid State/ULBs in taking decision with respect to various elements of implementing e-Governance solutions

Adequate software configuration

Designing of FRS guidelines for all the core modules is carried out centrally for all the States to follow with requisite changes/customization to be undertaken by State

Technological

Adequate legacy systems knowledge

A dedicated staff comprising technical and functional personnel has been


36

proposed under the IS organization structure at ULBs to take care of these requirements

Tactical Adequate application implementation strategy

Deployment of application by the application developers with the support of ULBs User Acceptance Testing is recommended as one of the high priority activities



37

VI Programme Design – Institutional Structure 1. Overview Figure 4, below presents the proposed institutional structure, which is based upon the following considerations:

• The structure should facilitate taking empowerment decisions and instill autonomy across the organization to fulfill their roles.

• The structure should be able to address the differing roles required to be played with respect to the implementation of projects.

Figure 4: Proposed Institutional Structure for NMMP

SeMT: State e-Governance Mission Team – as defined under NeGP PeMT: Project e-Governance Mission Team – as defined under NeGP

Central

State

ULB (Individual PIU’s)

Apex Committee

Implementation Committee

Municipalities Programme

Management Unit

State Level Sanctioning CommitteeSeMT / Nodal

Agency

PeMT

Project Manager

Functional Team Technical Team


38

The under mentioned institutional committees/teams/units constitute the institutional structure. At the Central (Programme) Level • Implementation Committee (IC) would be responsible for the time bound

implementation of the NMMP and adherence to NeGP objectives and • Municipalities Programme Management Unit would act as the Technical Secretariat

to the Implementation Committee. At the State (Sub-programme) Level • State level Sanctioning Committee would be responsible for the Implementation of

the NMMP in the State and • PeMT (State Implementation Consultants) would serve as the technical secretariat

to the State Municipalities Mission Implementation Committee and serve as a source of internal capacity for implementing the NMMP in the State.

At the ULB (Project) Level • Project Implementation Unit (Project Manager) would be responsible for the

project implementation at the ULB • A Functional Team would be responsible for implementation assistance and

ownership of the new system and MIS requirements at the ULB level and • A Technical Team would be responsible for application development for the core

nine modules. Note: As per NeGP implementation guidelines to States/UTs – an advisory council headed by the Chief Minister is to be created – which is not shown in the institutional arrangements as this council is for guiding e-Governance initiative at the State Level. It may also be noted that the NeGP guidelines to State require constitution of a State NeGP Apex Committee headed by the Chief Secretary for monitoring multiple projects in the State. Given the constitution and role of this committee – this committee can also serve as the State Level Sanctioning Committee, thereby reducing the requirement of creating multiple committees. 2. Details of Institutional Structure - Centre

Table 9 below summarizes the roles and responsibilities of the various units of the institutional structure at the Centre.

Table 9: Roles and responsibilities at the programme level Unit Constituents

(Recommended - Minimum) Key Role(s) Key Activities

Apex Committee

• As defined under NeGP

• Headed by Cabinet Secretary

NeGP policy, strategy and implementation monitoring including defining of service levels

NeGP program approval including process for program implementation

Approve changes to NeGP program components

Finalize funding strategy and fund management principles for NeGP

Monitor program progress


39

Resolve inter-ministerial issues

Facilitate legal changes for effective implementation, if required.

Unit Constituents (Recommended - Minimum)

Key Role(s) Key Activities

Implementation Committee

Ideally headed by Secretary (UD) or Minister (UD)

At least four State UD Secretaries

Representative of DIT (PMU) - GoI,

Representative of DARPG-GoI

Representative of Planning Commission

NISG/CGG 2 Municipal Commissioners Mission leader – NMMP

(Convener).

Time bound implementation of NMMP and adherence to NeGP objectives The committee should meet at least once every quarter

Policy setting Guidelines approval Fund allocation Project approval to

States/ULBs based upon NMMP Design

Programme monitoring Issue resolution Impact assessment Benefits management.

Municipality Programme Management Unit

Headed by the mission leader for NMMP

Director (UD) Nominated MoUD officials Implementation

consultants.

Technical secretariat to the Implementation Committee

Programme coordination Implementation of policy,

leadership and institutional development programme

Independent progress monitoring and standard setting role

Financial management Assistance in procurement

and contract management at the national level

Monitoring and evaluation Knowledge and project

Management Quality assurance and

oversight Policy and strategic

direction to States and ULBs 2.1 Municipality Programme Management Unit (MPMU) –National Implementation

Consultant MPMU, located within MoUD, would be the nerve centre for monitoring the implementation of the NMMP. The centre would work directly under the supervision of the implementation committee and would be headed by the NMMP Mission Leader. The functional structure and role of the centre is detailed through the Figure 5 overleaf. The design of the MPMU as presented above has been driven by the following considerations/principles: • MPMU should serve as a secretariat to IC in achieving the overall strategic vision of

the NMMP


40

• The proposed organization structure should be efficient –and not be so large that it becomes difficult to manage

• The organization structure should try to leverage resources from within MoUD as far as possible, so as to reduce the overall cost of creating and operating the MPMU and

• MPMU would appoint and work through a national implementation consultant thus leveraging outside experts in areas which are critical to the overall success of the programme, rather than attempt to build capacity and incur long term costs. National implementation consultant is to be housed within the MPMU.

Figure 5

Key Functions

of the MPMU

Mission Leader - NMMPMission Leader - NMMP

Programme coordination Programme Coordination

Financial Management

Financial Management

Knowledge Management

Knowledge Management

Monitoring and

Evaluation Monitoring

and Evaluation

Project Appraisal

Project Appraisal

• Review Project Proposals and e-Governance strategy for municipalities for various States and ULBs for adherence to NMMP design

Justification for the staff function

• Focus on implementation of the component projects including standards, training, capacity building, outcomes etc.

• Meet the information needs of monitoring the programme progress

• Coordinate with multiple States for monitoring

• Utilize funds efficiently and ensure project progress is not hampered due to lack of funds.

• Ability to effectively address capacity constraints would help in sustaining e-governance initiatives through knowledge management

• Prepare template for project reports

• Clarify Implementation guidelines

Key Job Responsibilities

• Develope and implement a comprehensive programme management information system;

• Provide training to various implementation agencies in sub programme monitoring; tracking project progress with respect to the desired outcomes and outputs;

• Periodic reporting on programme / project progress to present a comprehensive picture of NMMP

• Monitor release of funds and expenses

• Provide inputs on procurements and assist in bid process management

• Accounting and audit of expenditure

• Maintain all project delivery repository

• Assess Best practices and its dissemination

• Coordinate and organize knowledge sharing workshops

• Disseminate success stories amongst the implementation organizations

• Coordinatewith the component implementation units

• Develope policy frameworks for the key components such as core policies, etc.

• Work with implementation units to prepare transition plans for departments


41

Based upon the envisaged role of the MPMU, a draft scope of work for the national implementation consultants is provided as Annexure 1 to this report. 3. Institutional Structure - State Table 10 below summarizes the roles and responsibilities of the various units of the institutional structure at the State.

Table 10: Roles and responsibilities at the sub-programme level Unit Constituents

(Recommended - Minimum) Key Role(s) Key Activities

State Level Sanctioning Committee

• Headed by Secretary –UD/ Minister - UD

• Secretary – IT/e-Governance

• Secretary – Finance

• Secretary – Administrative Reforms

• Secretary - Planning

• Representative from Select ULBs

• Select Mayors

• Representative from MoUD

• Representative of the SeMT

• Director – Urban Administration (Convener and head of PeMT).

Implementation of the NMMP in the State

Finalization of a State e-Governance roadmap for municipalities

Project approval (received from ULBs) for funding by MoUD under NMMP

Finalization of the State rollout plan

Progress monitoring Issue resolution and conflict

management Facilitating legislative

changes for process reforms Approval of State-wide PPP

projects under NMMP Finalization of the

procurement strategy Finalization of the

application developer for implementing the e-Governance modules under NMMP.

The committee should meet at least once in two months

State e-Governance Mission Team / Nodal Agency

• As defined under the Capacity Building Guidelines of DIT under NeGP.

Review of the project proposal prepared by the PeMT for adherence to the State e-Governance Roadmap under NeGP

Review of the project proposal for adherence to NeGP standards and guidelines

Assistance with the preparation of project proposals, if required (prior to setting up of PeMT).

Unit Constituents (Recommended - Minimum


PeMT • As defined under the Serve as the technical

Preparation of the State e-Governance strategy for


42

(Supported by State Implementation Consultants)

capacity building guidelines of DIT under NeGP

secretariat to the State level sanctioning committee Serve as a source of internal capacity for implementing the NMMP in the State

municipalities (roadmap) Finalization of project

proposals (detailed project reports) for approval of the State level sanctioning committee

Development of financial sustainability model including analysis of PPP options

Assistance in the finalization of the FRS for application development

Finalization of the procurement strategy

Finalization of H/w requirements

RFP preparation and bid process management for appointment of application vendor and data digitization vendor

Guidance note on issues such as legislative changes, technology standards

User acceptance testing Project monitoring across

ULBs Finalization of the capacity

building and change management plan for the State.

3.1 Project e-Governance Mission Team (State Implementation Consultant) The nodal agency (which, in most cases, would be the Urban Administration Department) identified by the State Government for implementing the NMMP in the State would require a full-time and dedicated Project e-Governance Mission Team (PeMT). This team would be at the State level and would manage the process of tasking (i.e. outsourcing) to appropriate agencies (i.e. to undertake preparation of the project proposals, business process re-engineering, change management, financial structuring for sustainability, design & architecture, bid process management, etc.) with the help of and in accordance with the overall advice of the SeMT. It would also be primarily responsible for managing the implementation, dealing with technology, process and change management related issues internally as well as quality assurance etc. It is expected that the PeMT would typically consist of 2-3 core people from the department, supported by a team of State implementation consultants providing a well-balanced mix of domain expertise (having detailed


43

knowledge about the department and its processes and functions) and technical expertise (i.e. technology, process re-engineering, change management, project management). Detailed scope of work for the State implementation consultant is provided as Annexure 2 to this report. It is also suggested that the appointment of the State implementation consultant be undertaken by the PeMT/SeMT. However, to standardize and reduce the time taken for the selection of consultant, MoUD can prepare a panel of 6-8 consultants with national and regional reach that can be engaged by PeMT/SeMT. As projects in a State would be taken up in phases, initially the department may take necessary support from SeMT for handling early stages of project i.e. project proposal formulation and early stage of bid process. Formation of PeMT may follow at the appropriate stage, the earlier the better. The detailed role of PeMT would include: • management of the work and outputs of the State implementation consultants • Preparation and finalization of project proposals which would be submitted to the

Government of India (MoUD-IC) for subsequent approval and funding under the NMMP.

• Finalization of project details including top level functional requirements, level of government support, investment requirements, revenue estimates, capacity building requirement in the department etc

• Support the design and implementation of the project management processes within the department to carry out effective project monitoring

• Explore alternative solutions/strategies in reference to high level system architecture in terms of broad parameters for hardware, operating system and system software, software tools, networking and carry out cost-benefit analysis as well as recommend suitable platform required

• Finalization of Request for Proposals (RFP) for the design, development and implementation of the required IT solution as well as for the hardware and system software and networking based on conceptual System Requirement Specification (SRS)

• Assist in techno-financial evaluation of vendors and recommend suitable vendors • Provide support to the departments in dealing with various facets of development

and implementation of projects including: o Developing technology strategy and high level system architecture o Aligning efforts, activities and deliverables o Keeping focus on critical factors o Managing and coordinating with multiple parties (software development

and implementation vendor, hardware vendor, network vendor and other service providers;

o Managing timelines for the projects to achieve common objectives.


44

• Identifying e-Governance training requirement of the department and coordinating with SeMT if required for arranging the training.

• Provide any other project management and implementation support as required by the department.

Based upon the envisaged role of the PeMT, a draft scope of work for the State implementation consultants is provided as Annexure 2 to this report. 4. Institutional Structure - ULBs Table 11 below summarizes the roles and responsibilities of the various units of the institutional structure at the Project (ULBs) level.

Table 11: Roles and responsibilities at the project level Governance Unit Constituents

(Recommended - Minimum)


Project Implementation Unit (Project Manager)

• Headed by the project champion (preferably either the Mayor or the Administrative head)

Heads of Department – Administration, engineering, planning, revenue and accounts

• Nominated Chief Information Officer (Convener)

Project Implementation at the ULB

Design and finalize the system requirement specification

Prepare project proposal Overall project

implementation at the ULB level

Monitoring the project activities

Reporting on project progress to SLSC

Capacity Building and Change Management.

Functional Team • Nominated officers from the ULB

• Representative of the State implementation consultant

• Implementation assistance and ownership of the new system

• MIS requirements at the ULB level.

User requirement analysis Business process

reengineering Functionality gap

assessment User acceptance testing.

Technical Team • Application development and implementation team

• Facilities Management Team

• Nominated officers from the ULB.

Application development for the core modules

Day to day support.

Technical Training at ULB Level

Design and finalize the MIS requirements

Coordination with Vendors for H/W Procurement, Software, Networking, facility management

Ensure technical implementation according to project design.


45

Note: It may be noted that it has been recommended that a single application vendor be responsible for development of application and providing handholding support to all the ULBs within a State. Some considerations might be raised about the capacity of application vendors in providing requisite handholding support for a large State. However, we believe that a single application vendor (a single entity or consortium) should be responsible for the same - although the single application vendor may outsource part of the work. It is also felt that implementation within a State would be limited to a few Municipalities at any given point of time. 4.1 ULB Information System Organization

Figure 6 The salient features of the proposed ULB IS Organization, as depicted in Figure 6 are as mentioned below. • There is a need for a project champion (sponsor/manager) at the ULB for driving

the implementation and ensuring meeting of the time lines and resolving conflicts that are likely to be inevitable for a programme of this magnitude. Thus, it is suggested that the project champion should ideally be the head of the administrative branch or the elected representative. This is also necessary to ensure pushing forward of urban reforms, an important objective of NMMP

• Other than the Project Manager (Champion), who would bring in the desired level of top level commitment, there is also a need for a dedicated person responsible for day to day monitoring of the project and being a point’s person for carrying forward the e-Governance initiative in the ULBs. Such a person needs to be from a permanent cadre of the ULBs relatively unaffected by regular transfers

• A core group of 4-5 officers also needs to be identified in the ULB, who would champion the respective modules (functional) for ensuring smooth implementation and training. These officers would also serve as the trainers (under the train the trainer concept) for the larger sustainability of the training programme

Project Manager (Champion)(Mayor / Municipal Commissioner)

Chief Information Officer(Possibly Dy. Commissioner / Head of Finance and

Accounts)

Technical Team (Application Vendor

and Facilities Management Team)

Functional Team

Long Term Contractual Employees (Operators)


46

• In order to effectively address the need and complexity of an integrated application together with networking arrangement, it would be important that ULB have a small team of technical manpower having expertise in the areas of:

o Database Management o Technology Management o System Integration/Administration o Training o Financial Management and o Programming etc.

• To reduce the cost of the above resources, it is suggested that these external resources be taken on long term contracts rather than hire them on permanent basis. The number of such resources can be higher during the project implementation stage; to be reduced as the system stabilizes

• The technical team is expected to be met by the long term contracts with the application developer and facilities management services providers. An indicative scope of work for the same is enclosed as Annexure 3 and 4 respectively

• To ensure that the above hiring is not affected by any outside influence, especially at the local level, it is suggested that the PeMT at the State level, through the State implementation consultant, create a panel of such resources that can then be deployed throughout the State on the long term basis.

• It may be noted that the description of competencies and number of people indicated above is illustrative. The final composition would need to be worked out by the State as part of the detailed project report and that would vary for different classes of ULBs (largely based upon population coverage).


47

VII Programme Design – Funding Assessment and Arrangements

1. Overview Funding arrangement recommended is aimed at building commitment to NMMP and also ensuring adherence to the Design principles. Thus, funding arrangements would need to ensure that: • Funds are available on time • Funds are earmarked and yet fungible • Incentives for undertaking projects are provided and • Operations are transparent. The key aspects of the funding arrangements relate to the following: • Fund assessment and allocation • Admissible components under the proposed funding • Fund flow • Rules of access and • Monitoring and audit arrangements. However, before discussing the Design Phase recommendations with respect to the above, key issues that the current framework for funding of e-government projects faces and how these have been addressed through the proposed funding arrangements are highlighted in Table 12 below.

Table 12: Funding Design Parameters Sl. No.

Key Concerns in Funding Arrangements

Suggested Design Recommendations

1 Project funding may be effected through different schemes with plan, non-plan, finance commission funds, State Government resources, etc. There are issues of cost inefficiencies on account of duplication of infrastructure and resources in the provision of citizen/business services across many e-Governance Projects.

MoUD funds for all other schemes should be managed through the same implementing committee. Additionally, one of the key responsibilities of the PMU would be to identify overlaps in project costing before suggesting for project approval by the IC. It is also proposed that at the State level, where most of the overlaps occur, a sub-committee of the State level Sanctioning Committee be set-up which can be the Project Approval Committee with Secretary – Finance/Planning being the chairman. This is recommended given that Finance is one department that technically is in know of all ongoing schemes/programme and allocation and should be in a position to identify potential overlaps for funding and objectives.

2 If funds flow first to the State government, in view of

It is suggested that the earmarked funds allocated for State wide rollout (after Phase I) can be routed through a State/


48

the tight fiscal situation, they can get diverted to other priorities, there by affecting time lines for implementation. In case there is a delay in implementation or funds are not deployed within an year , they can lapse , further affecting implementation schedules

national nodal agency. The nodal agency can release funds directly to the project based upon the request of the PIU after getting concurrence of the PeMT who would be in-charge of the project monitoring and evaluation. Alternatively, once funds are approved/allocated by MoUD, they can transfer to an identified nodal agency that in turn transfers to a specified bank account of the ULB based upon the recommendations of the PMU, which in turn would be based upon request received from PeMT together with progress reports/milestones.

3 The current administrative procedures that are being deployed, though consistent with requirements as per General Finance Rules of the Government of India, usually result in delays on account of multiplicity of stakeholders involved in the budgeting, approval and disbursement process.

One time approval for the scheme can be received from the EFC for the programme and for budgeted amounts per ULB/State. Thereafter, actual funds can be released based upon the project approval by the IC with MoUD – based upon the project proposals received by ULBs through the respective State Governments within the overall budgeted limits. Since, the IC cannot meet on a very regular period (say 15 days), as part of the NMMP guidelines, States (SeMT/PeMT) should be recommended to prepare a comprehensive proposal on behalf of the participating ULBs only once during the year (in line with the phasing strategy proposed). It is suggested that all proposals can be received and approved 2 months prior to the commencement of the phases, which is normally at the starting of the financial year (in line with the roll out plan proposed under NMMP).

4 It may be possible to levy an e-service charge for some or all the services and to use a variety of PPP approaches to gain efficiencies of private sector involvement – this could accelerate the pace of implementation of the e-governance projects.

While, a decision on PPP options would have to be taken State by State and ULB by ULB, there is a general agreement that some component (the extent of the component is dependent upon a number of factors – discussed later in the section of PPP) of the project cost be met by innovative project structuring. Having said that, it is not possible at the programme design level to suggest a common mechanism. However, it is equally important to include use of PPP at the design stage. It has thus been suggested that the funding allocation within the programme (especially for million plus and cities with over 1 lakh population) should include funding by State Government/ULB/PPP as 25% of the overall budgeted project cost.

5 Sustainability of operations – There have often been situation that while capital costs have got funded, the

To address the issue of sustainability besides creating institutional capacity and stress of PPP, it is being suggested that NMMP design insist that the State earmark a portion of the State devolution to participating ULBs (extent to be


49

asset utilization has been poor due to limited funds available for regular O&M

calculated by the State implementation consultant but a minimum of 3% - as per Planning Commission Recommendation) to the State Nodal Agency/dedicated bank account of the ULBs, which would be used exclusively for the purpose of funding O&M and capacity building costs

6 The fund allocation to the projects is largely driven by the principle of equity between the participating agencies. There is little incentive built for accessing funds faster.

It is suggested that while budgeting for the programme, entire coverage is taken into account. However, at the starting of the year in case funds are left unallocated (after allocating to the project proposals received) the fund can be put together as an incentive funds for participating ULBs. These ULBs can access this funds (on a first come first serve basis) for undertaking additional e-Governance modules (over and above the 9 modules suggested) provided they have completed and met the project objectives of the NMMP

2. Fund Assessment The total fund requirement for undertaking the NMMP for the coverage of 434 cities is expected to be around Rs.1187 crores as summarized in Table 13 below:

Table 13: Funding assessment and allocation

S.No Cost Item Cat – I Cat - II Cat - III Cat - IV

1 Hardware - Network, System and Peripherals 34,746,600 25,926,950 8,820,250 2,935,000

2 System Software 12,810,000 12,390,000 3,205,000 1,180,0003 Data Digitization (Entry) 8,000,000 2,000,000 800,000 200,0004 Capital Cost per Location (1+2+3) 55,556,600 40,316,950 12,825,250 4,315,0005 No. of Locations (423) 6 29 34 354

6 Total Capital Cost per Category of Location (4*5) 333,339,600 1,169,191,550 436,058,500 1,527,510,000

7 Recurring Costs (Annual) 19,136,228 14,472,656 4,701,370 1,786,8008 Maintenance Period 5 5 5 59 No. of Locations 6 29 34 35410 Total Recurring Cost (7*8*9) 574,086,840 2,098,535,120 799,232,900 3,162,636,000 11 Total Project Capital Cost - Sum (6) 3,466,099,650

12 Total Project Recurring Cost - Sum (10) 6,634,490,860

13 Application Software Cost, 29 locations, Per Location Cost = Rs270,000,000 783,000,000

14 Training Cost - as per assumption 250,120,000

15 Consultancy Cost at Programme Level - as per assumption 94,100,000

16 Consultancy Cost at State Level - as per assumption 626,400,000

Total Cost 11,854,210,510


50

Note: Ideally (Scenario 1), • Central funding could include:

o For 35 locations, 90 % of the capital cost and 90 % of annual cost for the first two years and

o For other locations, 100 % of Capital Cost and 90 % of annual cost for the first two years.

• State/ULB funding could include: o For 35 locations, 10 % of capital cost and 10 % of annual cost for the first

two years and 100% for the balance three years and o For other locations, 0 % of capital cost and 10 % of annual cost for the first

two years and 100% for the balance three years. • However, the in-principle approval of the scheme by the planning commission

suggests that that project cost include the following: o Capital cost o Operation and maintenance cost for year 1 and o Operation and maintenance cost for year 2.

• However, (Scenario 2) in line with the NMMP strategy of sustainability and Lifecycle cost, it is proposed that the scheme include O&M cost for five years. In the event, GoI decides to restrict its funding to operation and maintenance to first two year only, it is still recommended that the detailed project report should still cost for five years with the funding arrangements for five years being agreed to and indicated by State/ULBs. This is suggested since many project (especially IT) fail in achieving their objectives because of lack of funding avenues for O&M.

• The scope of project cost indicated above includes cost for: o Deployment of Nine Functions/Modules o Creation of a State Web Portal o Creation of the Citizen Service Centres and o Setting up of Call Centre.

Accordingly, the funds commitment required from MoUD for the Municipalities NMMP and the contribution from the States is as shown in Table 14.

Table 14: Fund commitment required from MoUD and States Programme Cost (in crores)

Year 1 (35 ULBs)

Year 2 (69 ULBs)

Year 3 (106 ULBs)

Year 4 (106 ULBs)

Year 5 (107 ULBs)

Beyond Year 5

Scenario 1: 5 year MoUD Support Central Share

Capital Cost 199 109 63.4 63.8 63.4 - Recurring Cost - 48.1 68.1 85.2 102.4 245

State Share Capital Cost 16.8 1.8 1.8 1.8 1.8 - Recurring Cost - 5.3 7.6 9.5 11.4 27.2

Scenario 2: 2 year MoUD Support Central Share


51

Capital Cost 199 109 63.4 63.4 63.4 Recurring Cost - 48.1 68.1 37.1 34.3 34.3

State Share Capital Cost 16.8 1.8 1.8 1.8 1.8 - Recurring Cost - 5.3 7.6 57.6 79.5 291.7

Table 15: Admissible components under the proposed funding of NMMP

Cost Head Cost Item Capital Cost • Cost of hardware

• Cost of application software • Cost of system software • Networking cost [horizontal connection up to PoP (SWAN)] • Cost of data digitization • Programme level set-up cost. • State Implementation Cost • Training Cost - 1st Year

Operation and Maintenance Cost

• Annual Maintenance Cost – h/w and s/w • Cost of external consultants/Facilities Management Services • Cost of horizontal connectivity • Other communication cost • Cost of dedicated employees – other than external consultants • Stationary/consumable costs • Set-up and administration cost of PeMT/State implementation

consultants. Note: o Cost of State wide Networking or WAN is not to be included in the cost of NMMP as

it is to be funded out of other MMP under NeGP o It is also suggested that, to ensure the project is completed in a time bound

manner, in case ULBs are unable to implement the project within a reasonable period of time (say 18 months from the actual start of the project and 30 months from the date of the administrative approval (IC)), the project should not be supported with O&M costs

o The State implementation consultant is likely to be in place during the entire period of the project implementation in a State. However, it is suggested that the terms and condition (primarily related to person month effort) should be discussed and negotiated by the SeMT/PeMT at the start of the year based upon the envisaged work load in line with the State rollout plan.

While, the detailed fund assessment assumptions are contained in Annexure 5, indicated below are some of the key assumptions. • Application software to be procured at the State-level, with necessary

customizations for development at specific ULBs • State Wide Area Network (SWAN), one of the Mission Mode Project under NeGP

shall be used for interconnecting the municipalities in the State


52

• Programme cost is based upon lifecycle cost approach. Lifecycle has been assumed to be five years

• Each corporation to have its own IT infrastructure (not shared across corporations) • The current infrastructure at the identified 423 municipalities has not been taken

into consideration while budgeting for the computerization costs. Currently, some of these municipalities are at a very advanced State of computerization and actual requirement of computerization at these municipalities will have impact on the project cost estimates shown in this document

• The Infrastructure to be provided at the 423 Locations shall also facilitate provision of the department services for other municipalities in the districts

• The server infrastructure budgeted at Category II, III and IV is higher than what is currently required. With minimal or required hardware upgradation, this infrastructure can be used for the district data center facility to cater to all the municipalities in the respective district

• Site preparation is excluded from the project funding, which shall be borne by the individual States and

• 423 ULBs have been categorized under four categories for the purpose of costing estimates

o Category I - Cities with population over 100 lakhs, 6 Nos. o Category II - Cities with population between 10 and 100 lakhs, 29 Nos. o Category III - Cities with population between 5 and 10 lakhs, 34 Nos. and o Category IV - Cities with population between 1 and 5 lakhs, 354 Nos.

3. Fund Flow The Design Phase report recommends two primary options for managing funds flow to the participating agencies. Option 1: Creation of a State Nodal Agency It has been suggested that the funds earmarked for State wide rollout (after Phase I) can be routed through the State Nodal Agency for e-Governance, established under the NeGP. The nodal agency can release funds directly to the project based upon the request of the PIU and after getting concurrence from the PeMT (who would be in-charge of the Project Monitoring and Evaluation). In this case, a separate bank account in a specified scheduled bank may be maintained by the PIU (to be operated by the designated Project Manager) to receive funds from the State Government and Government of India. Funds would be provided by MoUD to the nodal agency, after review of project progress by MPMU. Option 2: Transfer of Funds to States through a Central Agency: Under this option, money allocated to the NMMP is transferred to an identified National Nodal Agency based upon the project approved. Thereafter, Nodal Agency to transfers funds directly to a specified bank account of the ULB based upon • Recommendations of the MPMU under the MoUD


53

• Request received from PeMT together with progress report milestones. Option 3: Hybrid of the above two options: Option three is a combination of both the above options. Herein, Option 2 can be followed for Municipal Corporations and Option 1, for smaller ULBs. In line with the strategy for the NMMP i.e. creating competition amongst States/ULBs for receipt of funds, it has been suggested that while budgeting for the programme, entire coverage for 423 cities be taken into account. However, at the starting of the year, in case funds are left unallocated (after allocating to the project proposals received) they can be put together as incentive funds for participating ULBs. These ULBs can access these funds (on a first come first serve basis) for undertaking additional e-Governance modules (over and above the 9 modules suggested) provided they have met the project objectives of the NMMP. Table 16 below presents details of the proposed fund release to the programme.

Table 16: Proposed Fund Release Milestone Milestone Amount

Project Development Expenses (Advance)

A token money will be released to the States on EFC approval and on request of the State Level Sanctioning Committee to put in place the institutional structure, preparing of the State e-Governance Municipality strategy and Detailed Project report. The amount of token money will be provided as per the Guidelines

Ist Installment 20% of capital cost on approval of the project by SLSC, signing of the Memorandum of Understanding between the ULB, State Government , MoUD and after the selection of the Application vendor subject to provision of matching state share if applicable

2nd Installment 50% of the capital cost on approval of the hardware specifications to be procured by the ULB and utilization certificate(UC) for 70% of the 1st installment, subject to provision of matching state share if applicable

3rd Installment Balance of the capital cost on installation of Hardware and application at the sites and submission of UC for 70% of grants released so far, subject to provision of matching state share if applicable

Half yearly Installment for the Annual costs

The Central share of annual cost shall be released in four equal half-yearly installments (Scenario 2).

4. Fund – Rules of Access Mentioned below are the key eligibility criteria which ULBs/State Government should agree/comply with before they can be considered for funding under the NMMP. The objective of specifying the rules of access is to ensure that NMMP does not become yet another funding vehicle that does not lead to “outcomes”. These include:


54

• State Governments and ULBs would need to enter into Memorandum of Understanding (MOU) with MoUD, Government of India. A draft of the MoU is enclosed as Annexure 6 to this report

• There should be a commitment of the State Government/ULB to agree to the key objectives and goals of the NMMP and the funding arrangements for meeting the lifecycle costs should be clearly articulated and detailed

• There should be a commitment of the State Government/ULB to achieve the Stated service levels proposed under the NMMP

• Each State Government would be required to clearly indicate State vision, identified road map and milestones through the preparation of the State e-Governance municipal roadmap

• The Strategy should address issues like institutional reforms, capital cost sharing principles, tariff/charges, operation and maintenance of systems to be created, and institutional mechanism for implementation, including legislative action

• In the MOU, stress should be on adherence to the reform principles defined by MoUD through other programme such as MUIS and NURM and its linkages and

• States should have initiated efforts for setting up of a State Wide Area Network. 5. Monitoring and Audit Arrangement The design phase report suggests that the annual audited project accounts shall be submitted to State Government and MoUD (MPMU), Government of India. The PIU would submit the audited accounts along with project progress report. The audit report should cover the following issues: • Number of bank accounts being maintained by the implementing agency (a single

and separate bank account should be maintained for the scheme) • Funds held in fixed deposits, if any (the programme funds are allowed to be kept

only in savings account) • Whether interest accrued in savings account has been taken as receipt and utilized

for the project • Delay, if any, in crediting the accounts of the implementing agency by the

receiving bank - if so, the period of delay • Whether bank reconciliation in respect of cash book balance and pass book balance

is being done fortnightly. The bank reconciliation should also cover interest accruals. The bank reconciliation Statement as on 31st March should be attached to the audit report

• Proper maintenance of cash book by the implementing agency • Actual expenditure against the approved budget head • Inadmissible items of expenditure, if any • Diversion of funds, if any • PIU will submit monthly progress reports to PeMT within 10 days of the succeeding

month; and for every financial year on or before 25th April of the succeeding financial year


55

• PeMT would send a consolidated progress report to MPMU at MoUD before 15th of every month

• Government of India will field multi-disciplinary review mission comprising Officers of Government of India and the respective State / UT Government, subject Matter Specialists / Experts once in 6 months or as often as may be necessary to review the implementation and recommend remedial action. The Mission is to guide the PIUs for faster implementation

• MPMU to undertake review mission and look into physical and financial progress of the project and indicate specifically mid course improvement, if any

• A project in ULB will be considered as completed on fulfillment of the following conditions:

o All the modules proposed to be taken up under the project have been fully completed & go-live achieved

o The audited project accounts for the entire expenditure has been received and taken on record in the Government of India

o Asset register is completed for assets created out of the Grant-in-Aid from MoUD

o The balance Government of India funds have been fully refunded o A Report on completion of project at a ULB under NMMP will be placed

before the implementation committee for observation and comments, which would be duly communicated to the State Government for further action, if any.

6. Preperation of Project Proposals (DPR) The Design Phase report recommends preparation and approval of project proposals in a two stage process: Stage1 Stage 1 would follow immediately on formal announcement of the scheme by MoUD. At this stage, in line with the fund release milestone, State Governments desirous of participating in the programme would need to undertake the following tasks: • Initiate preparation of a State roadmap for e-Governance in municipality that

would specifically: • Deal with issues in integrating e-Governance initiative in the sector with the

overall State e-Governance Strategy, which has been mandated by Department of IT, GoI as part of the NeGP

• Build commitment to the project amongst the participating ULBs • Allow a mechanism for generating discussions within the State for the project

and build consensus on the approach • Allow a basis for projecting cost estimates for State-wide rollout including

phasing ensuring project leverages all common infrastructure costs – State Wide Area Network, State Data Centre etc

• Bring in focus the legislative and business process changes that are required to achieve service level goals defined as part of the project design.


56

• Help finalize and put in place the governance structure required to implement a project of this magnitude and

• Initiate capacity building measures. The State e-Governance roadmap for the State would be submitted to MPMU which would look into the report for adherence to the design principles contained in this document. Note: The responsibility for preparing of the DPR would be that of the ULBs. However, the State implementation consultants / PeMT can assist the State in finalizing the DPR. The process of preparing the DPR and approval by the State should not take more than three to four months Stage 2 Approval of the State e-Governance roadmap for municipality and initiation of project preparatory activity would lead to stage 2. At stage 2, ULB would prepare a Detailed Project Report (DPR), in line with the format indicated in this Design Phase Document. The report would be prepared by the ULB with the assistance of PeMT (who in turn would be assisted by the State Implementation Consultants. After approval of the DPR by the Municipal Commissioner/Project manager (PIU), the proposals would be forwarded through the PeMT to SeMT, who would put it up to the State level sanctioning committee together with their comments on whether the DPR conforms to the State e-Governance roadmap and State e-Governance Municipal roadmap respectively. Once approved by SLSC, their approval and recommendations would be send to MoUD (MPMU) accompanied by: • Approved DPR • Commitment of the State Government to support the implementation of the NMMP

in the concerned ULB, from a technical, legislative and financial perceptive and • A duly approved and signed MoU between the concerned ULB and State

Government in line with the draft format suggested in the Design Phase report. At the central level (MoUD), the project proposals received from the State Governments would be appraised by MPMU on whether the proposal conforms to the programme (scheme) guidelines. Based upon the project appraisal report, MoUD would accord financial and administrative approval which can then be sent to SLSC for formal acceptance.

MPMU will communicate the clearance of the proposals to the State Government. It may, however, be noted that clearance by the Ministry does not imply administrative or technical sanction of the proposals. The procedures of the State Government/ULB in this regard would be followed.

Note: It may be noted that the preparation of detailed as-is and to-be process maps for an ULB would be prepared by the application vendor. However, for the purpose of


57

finalizing the application vendor and state wide functionality requirements high level process maps would be prepared by the State Implementation Consultant.

(This pace has been intentionally left blank)


58

VIII Programme Design – Cost Benefit Analysis

1. Overview The purpose of a Cost Benefit Analysis (CBA) is to support better decision-making to ensure that resources are effectively allocated. CBAs include comprehensive estimates of the projected benefits and costs. Benefits to which a rupee value cannot be assigned (i.e. intangible benefits) are included along with tangible benefits and costs. Intangible benefits are evaluated and assigned relative numeric values for comparison purposes. CBAs should be explicit about the underlying assumptions used to arrive at estimates of future benefits and costs. The vision of the Municipalities NMMP is to improve service delivery mechanisms, achieve better information management and transparency and ensure utmost citizen’s involvement in participative governance. In this regard, the NMMP envisages provision of services at better service levels and through better service channels. To achieve the aforementioned objectives, an estimated outlay of Rs. 1,187 crores has been budgeted. 2. Benefits Envisaged To carry out an effective Cost Benefits Analysis, it is essential to evaluate and assign relative numeric values to the tangible and intangible benefits, for comparison purposes. The first step, however, is to identify these benefits. Some of the benefits that would flow out of the NMMP for the citizens include the following: • Improved service levels (i.e. reduction in time taken to provide services) • Reduced in waiting time (using FIFO, “Customer Flow Management Systems” etc.) • Increase in service channels (e.g. Online services through the internet) • Decrease in dependence on intermediaries • Provision of better quality documents (fewer errors in documents, clearer print,

better quality paper etc.) and • Provision of better ambience at service counters/centres. The benefits mentioned above have to be quantified using a scale (like time, money etc.), which would then be assigned numeric values in rupee terms so as to carry out an effective cost benefit analysis.


59

3. Assumptions To quantify the savings in terms of time into savings in rupee terms, we have taken certain assumptions, which are detailed in this section. Assumption 1 Savings in Time: To calculate the savings in time in rupee terms we calculate the opportunity cost of time, for which the following assumptions are used: per capita income of India = Rs. 23,308 working days (average) = 270 days working hours (average) = 9 hours opportunity cost of time = per capita income/ (working hours × days) = Rs. 9.60 per hour Assumption 2 Coverage: To calculate the coverage of the Municipalities MMP, the affected population needs to be calculated. A benchmark figure has been calculated below but the coverage will vary from service to service and has been accounted for. Number of ULBs covered = 423 Population of these cities = 172 million % of people availing services = 40 %4 coverage = 68.82 million Assumption 3 For the purposes of calculating the coverage of services that mainly affect families (e.g. property tax), the number of people per family is assumed to be 3. Assumption 4 It is assumed that of all the people availing of the services of ULBs, a fair percentage would avail of the online services. For simplification sake we have assumed that an additional 10% of total savings from time can be attributed to savings from provision of online services. Assumption 5 It is difficult to quantify the savings from the reduction of dependence on intermediaries. However, for simplification sake we have assumed that an additional 5% of total savings from time can be attributed to savings from reduction of dependence on intermediaries.

4 based on number of people between the age group 20-60 years and an assumption that 60% of these people avail of the services provided by ULBs


60

Assumption 6 Cost benefit Analysis is carried out over the lifecycle of a project or the system. It is being assumed that the life cycle period of the NMMP is 10 years. This period of 10 years is beyond the completion of the NMMP and it is for this period that we have quantified the benefits and carried out CBA. Benefits accruing during the period of implementation of the NMMP have not been considered because: • Functional Coverage: the nine modules are developed and go-live at different time

periods • Geographical Coverage: implementation at the 423 ULBs are undertaken in a

phased manner • Application Stabilization: the applications developed as part of the NMMP would

need time to stabilize and it can be safely assumed that the applications for all the modules would require 5 years to stabilize in all the 423 ULBs.

• In other words, we assume that the benefits accruing in the implementation phase would be negated by the stabilization issues and deficiencies in coverage (both functional and geographical).

4. Quantification of Benefits Quantification of per annum savings in time has been calculated as the product of time saved {in hours} (difference between proposed and current service levels), coverage of population (whether all, per family or G2B), usage (services used per year) and opportunity cost of time.

Table 17: Cost Benefit Analysis Sl. No.

Services Time Saved

Coverage Usage (times per year)

Savings (in Rs. crores)

1. Information 15 mins All 4 6.88

2. Birth and Death Registration

5 days Per Family 1 103.23

3. Property Tax 45 mins Per Family 1 1.724. Utility Bills 30 mins Per Family 12 13.765. G2B Services 7 days 5% 12 260.146. Grievance Handling 3 days All 1 185.817. Waiting Time 15 mins All 4 6.88Total Savings 578.43After considerations for additional time savings due to Online services 636.28After considerations for reduction in dependence on intermediaries 668.09After considerations for provision of better quality documents and ambience 701.49

Present Value of savings (discounted @ 10%) 3,215.00 Present value of costs (discounted @ 10%) is calculated as per the figures in table 14. The present values of costs turn out to be around Rs. 1,048 crores.


61

5. Summary As per the calculations indicated above, the total per annum savings (in rupee terms) due to savings in time is around Rs. 636 crores. If we add a 5% component for reduction in dependence on intermediaries, the savings is around Rs. 668 crores. If we add another 5% component for provision of better quality documents and ambience, the savings turn out to be Rs. 701 crores. Using a 10% discount rate and a life cycle period of 10 years, the present value of total savings (in rupee terms) turns out to be around Rs. 3,215 crores. In comparison to the total present value of estimated costs of around Rs. 1,048 crores, it is safe to say that the benefits envisaged for the citizens certainly outweigh the costs of implementing the Municipalities NMMP.


62

Annexure 1. Scope of Work – National Implementation Consultants Objective The role of the Implementation Phase Consultants will be to facilitate the Programme Management Unit (PMU) in achieving the overall objectives of the NMMP. Implementation Phase as part of the PMU will have the overall responsibility for programme monitoring at all levels. Given the project intricacies with regard to project reach and level of detailing, the Center will imbibe the standards of excellence required to fulfill such an ambitious task. More specifically, the Center will overarch State Level Implementation Consultants and work as a team. Scope of Work The role of the implementation consultant at the national Level can largely be described under five broad areas, each of which have been described in detail: Setting up of a Programme Office Support Implementation of the NMMP Design Programme Monitoring and Coordination Knowledge Management and Impact Assessment and Project Closure.

Setting up of a Programme Office Define the governance structure of the programme office

• Definition of roles, responsibilities and authorities of program office • How the project office can complement existing governance structures and • Governance model for program office, resource levels and skill sets.

Design Delivery Model and Implementation Approach • Review current programme delivery capabilities of MoUD/PMU • Gather information on previous projects from lessons learnt perspective • Determine and agree detailed project delivery model • Determine and agree program office implementation strategy and • Communicate model and approach to State/ULBs.

Detailed Planning and Tailoring • Tailor processes, templates and project management framework • Review and agree processes, templates and framework and • Review options for programme monitoring tool.

Implement • Communication pack designed to suit the project requirements • Software tool implemented for the program management • Impart training to MoUD team on project processes, templates and Software

tools to be used and • Finalize project management methods and tools.


63

Support Implementation of the NMMP Design Supporting State Government/ULBs through preparation of guidance

notes/circulars/ best practices, model templates for finalizing municipal e-gov plans

Provide clarification/support to State Governments to the various Design Phase outputs i.e. Functionality, Standards and Guideline, Fund Management etc

Support MOUD in examining and evaluating proposals received from different State/ULBs e-governance projects

Finalize the national procurement strategy for acquisition of products and services under the NMMP

Support in designing of the techno-financial evaluation criteria for the selection of vendors

Assist in the process of preparing a short list (empanelled) of consultants in line with the NMMP strategy. This would include: RFP preparation, Bid Process Management and Evaluation

Assist in the process of preparing a short list (empanelled) list of application developers with STQC

Draft service level agreements and MoU’s for the establishing PPP Models Assistance in procurement and contract management at the national Level Assessment of potential partners for implementation, development of solution(s),

maintenance and also for financing the project(s) Closely support the project implementation team at the State level in terms of

responding to queries and providing guidance notes from time to time Review on an ongoing basis Work out the estimates of total cost, including

hardware, software, networking and manpower cost for scaling up at State and national level

Developing a structure for project scope change control Providing a framework for quality control Ensure uniformity of basic design and implementation approaches across States.

Programme Monitoring and Coordination Review and Monitor of the rollout plan in accordance with NeGP guidelines to

initiate the roll-out in 423 ULBs as part of National Mission Mode Project in municipalities

Setting up a project library containing the project documentation templates and the documentation of current and future projects

Monitor and evaluate the project progress. Preparation of the templates for project progress

Monitoring the release of funds and its utilization Implementing a Comprehensive Programme Management Information System


64

Coordination between the project stakeholders (e.g., steering committee, project management, internal resources, integrators/contractors, application service providers, etc.)

Maintaining a log of all sub-project plans and generation of summary plans showing project status and progress

Provide operational support to the department in day to day monitoring and management of the program

Set-up and administer of processes for communicating interdependencies between sub project plans across the project and highlight deviations

Document project risks and track progress of planned mitigation measures Set up and administer issue and escalation management process Maintain the financials and accounting and audit of expenditure Prepare and circulate periodic program status reports Coordinate with State implementation consultants.

Knowledge Management Distribute (electronically or manually) documents as required for information to

the State project teams Obtain requested resources necessary for the State project team to complete their

tasks Identify the best practices from different States and disseminate the knowledge to

other States Coordinate and organizing knowledge sharing workshops Address capacity building and change management issues Coordinate preparation of advocacy films and reports.

Impact Assessment and Project Closure Finalize the monitoring and evaluation framework for the NMMP Finalize an impact assessment format Provide guidance note on base information collection Analyze the base level information and track progress Prepare a plan for regular field visit to verify impact of NMMP Prepare and share project closure reports Participate in the project closure meeting at the State/ULB level.

Deliverables The applicable deliverables of the national level project consultants would consist of the following:

1. High level Implementation Model design consisting of: Definition of roles, responsibilities and authorities of “Programme

Management Unit” Governance model for Program Office, resource levels and skill sets, giving:


65

• Organization structure and • High level processes e.g. for change management, dependency

management etc. Ongoing resource requirements and skill description Project management processes (e.g. change management, communication,

dependency management etc.) A detailed specification of the roles and responsibilities of the project staff The context and mode of operation of the project library including storage,

access, change management and reporting Implementation strategy giving details of overall approach, training

approach, training plan etc Techno-Financial evaluation criteria for selection of consultants Tailored project office processes and templates including: -

• Change Management Process • Issue and Risk Management Process • Dependency Management Process • Templates for – Status Reports, Project Plans, Functional

Requirements, Process Documentation etc. and • Communication Procedures.

Developing and implementing a Comprehensive Programme Management Information System

Preparation of template for project reports and Developing policy frameworks for the key components such as core

policies, etc.

2. Implementation plan that will include detailed training plan, resource requirements and timing, processes required for populating the program library Training material designed to suit the project requirements Software tool implemented for monitoring the project Knowledge transfer to key stakeholders and Impart training to project team members on; -

• Project Processes • Templates and • Software tools to be used.

3. Carry out the project induction activity for each of the projects initiated 4. Project Monitoring Activities including the following:

Updating the project management framework and tools on a regular basis Support for the program manager on software tools to be used Program Progress and Status Reports for:-

• Program Manager • Steering Committee • Adhoc reports as and when required.

Providing guidance on planning,


66

Helping to highlight and manage risks and issues, Service level agreements and MoUs for PPP Vendors Assisting with third party management, Maintenance of logs and reporting on: -

• Change Management • Issues • Risks • Dependencies • Updating Project Library on an ongoing basis and

Maintaining a consolidated project plan for the program in the program library.


67

Annexure 2. Scope of Work – State Implementation Consultants Objective To facilitate implementation at the State/ULB Level, the program would be supported by project (Urban Development Department) e-Governance Mission team (PeMT). The State implementation consultant will serve to strengthen the delivery capability of the PeMT and serve as the technical secretariat to the State Municipalities Mission Implementation Committee. The consultant would be responsible for managing the implementation, dealing with technology, process and change management related issues internally as well as quality assurance at the State etc. Scope of Work The implementation consultant at the State Level would undertake the following tasks: Assisting the State in preparing/finalizing the State e-Governance Municipal

Strategy. This should include estimated project budget, timelines and responsibilities, technology architecture, requirements for site preparation, the application architecture, the organization and administrative and legislative changes expected from the State

Finalization of the web strategy for municipalities in line with the overall web strategy (portal) for the State

Assist the State Government/ULBs prepare/review project proposals Work with the “Programme Management Unit” at the national level for ensuring

adherence to overall project objectives Finalizing the pilot district/locations/rollout plan. The Key Performance Indicators,

which the State authorities would expect to achieve out of the project would possibly, set direction to this effort

Advice State governments in the selection of core processes for subsequent BPR including suggesting opportunities for re-engineering administrative processes to suit IT implementation

Provide a roll-out plan along with the target envisioning to the State. The plan should include the estimated cost and budget for resource requirements to roll-out including hardware, software, data preparation and other resource requirements

Finalize the procurement rules (taking into account the recommendation of MoUD) and advise the State Government/ULB on issues relating to procurement of hardware, software and operation and maintenance

Analyze the Integration requirements between the application and the web portal Prepare the plan to focus on prioritization of project opportunities, identification

of key personnel for the rollout, development of a sourcing RFP for hardware and software, if required. Migration and implementation plan including timelines and milestones


68

Prepare request for proposals (RFP) for the design, development and implementation of the required IT solution as well as for the hardware and system software and networking based on conceptual System Requirement Specification (SRS)

Assistance to the application developers in finalizing the functionality requirement specifications, including assistance in selection of the software developer, finalizing service level agreements with software providers

Document project best practices and facilitate cross learning between projects. Monitor quality of service of service providers including assistance in setting up of

institutional mechanism for reviewing and monitoring Provide support to the departments in dealing with various facets of development

and implementation of projects including: • Developing technology strategy and high level system architecture • Aligning efforts, activities and deliverables • Managing and coordinating with multiple parties (software development and

implementation vendor, hardware vendor, network vendor and other service providers;

• Managing timelines for the projects to achieve common objectives. Design change management program at the State level and help the State

Government in finalizing and implementing the capacity building plan Specify details of parallel run of the systems and phase out of the old system after

a cut-off period Define troubleshooting approaches and processes with regard to both technical and

non-technical issues Identify the milestones/indicators for monitoring success and Undertake independent evaluation from time to time.

Deliverables The applicable deliverables of the State Implementation consultants would consist of the following: State Municipality e-Governance Strategy and Roadmap “As-is” Assessment report of the ULBs “To-be” assessment report for the ULBs Roll out Plan for ULB/State Designing of a RFP for selection of the application developer. RFP document

detailing the roles and responsibilities of the Application developer and the State , scope of work for the application developer, evaluation criteria ,terms and conditions, SLA Guidelines etc.

Support in evaluation and selection of the application developer. Define the technical evaluation criteria for selection

Designing the Web Portal Strategy and its integration requirements with the Application


69

Designing of a RFP for selection of the data entry agencies. RFP document detailing the roles and responsibilities of the data entry agencies and the State, Scope of work for the application developer, evaluation criteria , terms and conditions, SLA Guidelines etc.

Support in evaluation and selection of the data entry agencies. Define the technical evaluation criteria for selection

PPP Option analysis - A document detailing the types of PPP Models applicable in the ULB context with different scenarios, depending on the amount of investments to be made by the private or Govt. party. The document will also detail the feasibility of each of the PPP options

Designing the Service level Agreements and MoUs for the vendors Status reports: The consultants would be expected to keep the senior management

informed of all the activities on a regular basis apart from bringing issues of urgent nature to their notice expeditiously and

Training programs and plan for training of users on the new system and processes Coordination with National implementation consultants.


70

Annexure 3. Scope of Work – Applicator Developer Objective The objective is to develop a comprehensive and integrated solution that meets the requirement of the ULBs across the State and thereby provide an opportunity for an “integrated view” of the data. Integrated view offers a better scope for management information and decision-making. While achievement of process standardization and operational efficiency gains are reflected as a product of integration it also helps in uniform structuring of base information such as property taxpayers code. The specific objectives of the Application development is to Develop a single and integrated view of ULB information across all ULBs in the

State Higher utilization of existing Infrastructure and Technology investments. Provide timely and reliable management information relating to municipal

administration for effective decision making Integration with other related applications Provide ‘single window’ services to citizen Provides user-friendly environment accessible over browser Provide anytime, anywhere payment of taxes and Increase the efficiency and productivity of the employees.

The application design requirements should meet the Functional requirement specifications provided by MoUD in the Design Phase document. Scope of Work The Application Vendor at the State Level would undertake the following tasks: Functional and Systems Study Study of existing systems and procedures, ULBs functional requirements, business processes, Design Phase Functional requirements, user requirements and finalize the baseline requirement. The systems study needs to be carried out at the identified ULBs as well as the office of State Municipal Directorate, and identified Regional Offices Design • Designs of the application software should meet the required functionality • Design of the application, database structures, security architecture and interfaces • The design to be in tune with design phase report with necessary modifications for

local conditions.


71

Security Architecture Design of the Security Architecture, preparation and implementation of a Security Administration Plan for the entire System Development Development of the application software based on the system specifications frozen during systems study using modular approach. Implementation The Application vendor shall deploy the application software at the selected Pilot locations initially and at all the locations subsequently The implementation at all locations should be completed in ____ months from the ‘Go live’ date at the pilot location. Operational Support and Maintenance The Application vendor shall provide operational support and maintenance service for period of _____ years from the ‘Go-Live’ date for overall system stabilization, application maintenance, system administration, database administration and end-user problem resolution. The operational support will be to ensure that the application system is functioning as intended and attending to all problems associated in operation of the application system The Application vendor shall carry out all changes in functionality on account of changes in applicable legislations/statutes, Rules and notifications (Government Orders) resulting in modification to the baseline requirements for a period of _____ years from the ‘Go-Live’ date. The changes include all modification or alterations, which may require the changes to the systems design of the application software Warranty • The Application vendor warrants that the systems supplied to State shall have no

defects arising from design or workmanship or any act or omission of the Application vendor.

• The warranty shall remain in valid for period of three years from the ‘Go live’ date Data Migration • Data migration from manual and legacy system to the new System with reasonably

error free conversion including preparation of data and uploading. • Data migration to be preceded by an appropriate data migration strategy. • Conversion of data from manual to electronic form is not in the scope of work Comprehensive Training For each module installed, the Application vendor is required to train the designated Department’s technical and end-user staff to enable them to effectively operate the total system. The Application vendor shall also be responsible for re-training the operators whenever changes are made in the software.


72

Documentation Preparation of documents including that of Systems requirement Specification, Detailed Design, User Manuals, Operational Manual, Maintenance Manuals, etc. as per acceptable standards. Infrastructure Requirements study Study of existing infrastructure (hardware and networking infrastructure) available at all the ULBs, Regional, Ward offices etc. Analyze and recommend the requirements of the infrastructure with specifications needed for successful implementation of System. The recommendations to include a detailed Bill of Materials Deliverables The applicable deliverables of the Application Vendor would consist of the following: Functional Requirements Document Software Requirement Specification Data Migration Strategy Hardware and Network Capacity planning and sizing

(including a detailed Bill of Materials) System Design Document Integrated Application software for State Municipal department and ULBs Web Portal for the State Data Digitization Application Source Code for all the modules vis-à-vis the entire application Systems Administration Manuals User manuals Installation Manuals Operational Manuals Maintenance Manuals Training and training material and Security architecture.

Key Requirements of the Solution The solution should have the capability to: Function on internet/intranet. The Application will be integrated with the Web-

Portal Integrate applications across various locations, platforms and databases (for e.g.

Integration of the application with Citizen Service Counters application for enabling the collection of the taxes through the proposed Citizen’s Service Centres)

The modules shall be interlinked and interdependent and work seamlessly Maintain standard data definitions (Metadata) for data elements as defined by

MoUD/DIT


73

Maintain an audit trail of all the transactions Monitor the flow of information with ease; provide load balancing in case of heavy

volume of requests The security services used to protect the information infrastructure shall include:

Identification, Authentication, Access Control, Administration and Audit The architecture of the solution will be based on open, inter-operable standards

and shall not be based on any proprietary systems or packages. The architecture will be proven to be highly scaleable and capable of delivering high-performance in varied conditions

The architectural and design features shall enable adoption of multiple delivery channels, i.e. at the departments, on the Internet, kiosks, Call Centres, Mobile computing etc. and

Ensure integration of the departmental information systems both horizontally and vertically in a manner that reflects the efficiency and economy of the entire architecture.

The solution shall aim at Compatibility with the existing application software of the departments Should be scaleable and secure Should be cost-effective and Defining, standardizing and migrating the existing municipal processes resulting in

streamlined and efficient processes.


74

Annexure 4. Scope of Work – Facilities Management Services Objective The purpose is to maintain the integrated set of Network and System Hardware for functioning in a distributed environment for State Municipal Department. To support the operations and maintenance at the ULBs for ___ Years. Scope of Work The successful bidder would undertake the following tasks: Overall management and administration of Servers, PC’s, Printers, peripherals,

Networking, leased lines, UPS and Peripherals of ULBs Tracking the Network Status, Availability and attend to all related issues Monitoring security and intrusions into the system, which include taking necessary

preventive and corrective actions. Monitor, record server and network performance and take corrective actions to

ensure performance optimization on a daily basis Escalation and co-ordination with other vendors for problem resolution wherever

required. System administration tasks such as managing the access control system, creating

and managing users, taking backups etc. Attend to user request for assistance, which may be made telephonically, or

through e-mail Ensure that daily back-up copies of the data are created and maintained safely Maintain adequate stocks of spares to achieve Key Performance Indicators

Department reserves the right to verify the stocks at any time Whenever a component has to be replaced because of technical, functional,

manufacturing or any other problem, it shall be replaced with a component of the same make and configuration. In case the component of same make and configuration is not available, the replacement shall conform to open standards and shall be of a higher configuration specifically approved by ULB

Carrying out other important activities which includes but not limited to: • Daily maintenance of system configuration • Implementation of system security features • Overall security of the network • Day to day disk space management • Tracking the servers performance and take the remedial and preventive

actions in case of problems • Proper upkeep of storage media for taking backups

Provide Network services which includes but not limited to: • Configuration, management and tuning Network devices for optimum

performance


75

• Network fault isolation • Monitoring of network performance and escalation of performance

deterioration to concerned authorities and take remedial actions to resolve such issues

• Implementation/modification of network routing policies, IP addressing policy as required

• Real time monitoring and deployment of network security measures 24*7*365 • Maintenance of network configuration, routing, IP –addressing documentation

etc. and • Bandwidth monitoring and trending for the network.

Manage the entire solution through enterprise management system which shall include but not limited to:

• Maintenance and tuning of servers and network management setup for ULB • Fault isolation in all locations • Formulation and implementation of network and systems management

policies • Monitoring of network and systems, generation of reports and analysis of data

and • Enabling problem reporting through web.

Information Security Services • Implementation of security measures to ensure that the confidentiality is

maintained of production account passwords used by the administrators. The person shall monitor production systems for events or activities, which might compromise (fraudulently or accidentally) the confidentiality, integrity or availability of the services

• The incident response process will seek to limit damage, which includes investigation of the incident and notification of the appropriate authorities. A summary of all security incidents shall be made available to State Municipal department on a monthly basis. Significant security incidents will be reported immediately

• The person shall produce and maintain system audit logs on the system for a period agreed with the State municipal department. On expiry of the said period the audit logs should be archived and stored off-site. He shall also regularly review the audit logs for relevant security lapses

• The person shall review security advisories (such as bulletins generally available in the industry) on a regular basis to determine vulnerabilities relevant to the equipment and take necessary preventive steps and

Supply the consumables required for ULBs daily operations. These consumables include but not limited to Floppy disks, CD Media, Printer cartridges, printed chalans/forms etc. Details of the consumables required for DMA shall be provided during the pre-bid conference.


76

Annexure 5. Detailes of NMMP Costing Overall Project Cost

S.No Price Item Cat - I Cat - II Cat - III Cat - IV1 Hardware - Network, System and Peripherials 34,746,600 25,926,950 8,820,250 2,935,0002 System Software 12,810,000 12,390,000 3,205,000 1,180,0003 Data Digitization (Entry) 8,000,000 2,000,000 800,000 200,000

4 Capital Cost per Location (1+2+3) 55,556,600 40,316,950 12,825,250 4,315,0005 No. of Locations (423) 6 29 34 3546 Total Capital Cost per Category of Location (4*5) 333,339,600 1,169,191,550 436,058,500 1,527,510,000

7 Recurring Costs (Annual) 19,136,228 14,472,656 4,701,370 1,786,8008 Maintenance Period 5 5 5 59 No. of Locations 6 29 34 35410 Total Recurring Cost (7*8*9) 574,086,840 2,098,535,120 799,232,900 3,162,636,000

11 3,466,099,65012 6,634,490,860

13 783,000,00014 250,120,00015 94,100,00016 626,400,000

11,854,210,510Consultancy Cost at State Level - as per assumption

Total Cost

Total Project Capital Cost - Sum (6)Total Project Recurring Cost - Sum (10)

Training Cost - as per assumptionConsultancy Cost at Programme Level - as per assumption

Application Software Cost, 29 locations, Per Location Cost = Rs270,000,000


77

Key Assumptions S.No Key Assumptions

1

The current infrastructure at the identified 423 municipalites has not been taken into consideration while budgeting the computerization costs. Currently, some of these municipaliites are at a very advanced state of computerization and actual requirement of computerization at these municipalities will have impact on the project cost estimates shown in this document.

2The Infrastructure to be provided at the 423 Locations, shall also facilitate provision of the department services for other municipalities in the districts.

3 Number of Zones assumed at each location is based on the information provided by Fire Consultants.

4The server infrastructure budgeted at Category II, III and IV is higher than what is currently required. With minimal or required hardware upgradation, this infrastructure can be used for the district data center facility to cater to all the municipalites in the respective district.

5For 35 Locations, Centre shall fund 90 % of Capital cost and 90 % of recurring cost. Remaining costs shall be borne by the state.

6 For remaining locations, centre shall fund 100 % of capital cost and 90 % of recurring cost.

7 Site preparation is excluded from the project funding, which shall be borne by the individual states.

8 423 ULBs have been categorized under four categories for the purpose of costing estimatesCategory I - Cities with population over 100 lakh, 6 NosCategory II - Cities with population between 10 lakh to 100 lakh, 29 NosCategory III - Cities with population between 5 lakh to 10 lakh, 34 NosCategory IV - Cities with population between 1 lakhs to 5 laks, 354 Nos

9 Training Cost is based upon the followingNo. of Employees to be trained

Category IV 50

Category III 75

Category II 100

Category I 150Average No. of Training in a Year

264 Total No. of Working days

5% %age No. of Days for Training

13 No. of Training Days, assuming 22 working days in a monthTraining Cost Per Day, including cost of preperation of training material (Rs.)800

10Cost of the H/w, S/w and Other Ecurring Cost is based upon a comparison of actual cost for e-Governance initiatives for State wide rollout in Andhra Pradesh, Kalyan and KMC.

11 Consultancy Cost at Centre 94,100,000

6 Resources Proposed

5 Time Period (yrs)

225,000 Average Per Month Rate

600,000 Contingency, Travel, Seminar, Awareness, etc., Rs.12 lakh per annum

12,500,000 Set-up Cost, Programme Management Software

12 Consultancy Cost at State 626,400,000

4 Resources Proposed

3 Time Period (yrs)

150000 Average Per Month Rate

29 No. of State


78

• The cost of the Infrastructure at Category I, II, III & IV type ULBs is varying based

on size, population and transactions occurring in the ULB • The total volume of the transactions and data, which shall be processed across

these categories of ULB varies due to size of the ULB i.e. geography and population. Category I ULB have more than 1 crore population with category II, III & IV ULBs relatively with lower population leading to lesser volume of transactions and data. Based on this assumption, the cost of the server infrastructure, network & security infrastructure has decreased from Category I ULBs to Category IV type of ULBs

• The availability of the Information System deployed for the ULBs is essential in providing effective services to the citizens. To ensure the continuity of the ULB services, appropriate redundancy is required in the Infrastructure at server, networking and security levels. The cost of such redundancy in the infrastructure has been factored into the overall cost of the solution.

• In addition, in order to ensure the continuity of the operations in case of data center/site outage, a disaster recovery site is proposed at the State level hosting the required server infrastructure and data backup facilities. The cost of the DR solution is also factored into the overall cost of the solution

• The change management is an important factor in the overall success of any e-Governance initiative. This has been appropriately addressed in the design phase of the MMP project of Municipalities. While it is important to provide the functional & technical training to the municipalities, the requirement of deploying the operators with the appropriate technical skills and functional knowledge of the solution has been foreseen by the MoUD. During this transition phase towards implementing and usage of information systems, these operators are expected to play a pivotal role in ensuring successful rollout and utilization of the system till the department employees are completely trained and comfortable with usage of the system. In addition, one of the requirements of the project was to establish the citizen service centers for the ULBs to provide easy access to the department services to the citizens. In order to operate and manage these service centers, skilled personnel with the IT skills and the knowledge of department processes and procedures is required. The operators proposed for the project shall be used for manning and operating these Citizen Service Centers. The proposed cost of the solution also includes the cost of the operators required at ULB and the Citizen Service Centers.

Infrastructure

Component Reasons for variation in the cost between various categories.

Web Servers The dedicated web servers are proposed for Category I and II type of locations, which are also expected to host the portal solution for the external users. Due to the lower number of system users and transaction volumes, the web server and application server are proposed to be installed on the on the same server along with application same server for Category III and IV type of locations.

Application For Category I & II type of location, similar server configuration is


79

Servers proposed as the infrastructure at these locations are expected to cater to the internal users of the ULB and external users i.e. citizens through external portal solution. For category III and IV lower cost/configuration servers are proposed lower number of system users and transaction volumes, the web server and application server are proposed to be installed on the on the same server along with application same server for Category III and IV type of locations. The variance in the cost in Category III and IV type of locations is due to less number of processors, lower RAM and scalability features.

Database Servers For Category I & II type of location, similar server configuration is proposed as the infrastructure at these locations are expected to cater to the internal users of the ULB and external users i.e. citizens through external portal solution. The variance in the cost for the database servers in Category III and IV type of locations is due to less number of processors, lower RAM and scalability features.

End User Systems The proposed end user system configuration includes a processor with 3 Ghz speed, 128 MB RAM, 36 GB hard disk, standard key board & mouse, 15 inch color monitor.

Routers - Aggregation

The variance in the cost of aggregation routers is due to the variance in the number of locations connected to these routers. The aggregation routers proposed for category I type location is expected to connect about 20 locations, where as in category IV it is 2 locations. The number of locations has a direct impact on the size of the router in terms of number of interfaces, memory, speed etc.

Database Server Software

The enterprise edition software is proposed for the database server at Category I & II type of locations, where the expected number of system users, including ULB employees and citizens is high. The standard edition software is proposed for the database server in Category III & IV with per user license due to the lower number system of users in these locations. In addition, the infrastructure in Category III and IV type of locations does not interface with citizens directly and it servers the ULB employees only.

Storage Solution The variance in the cost of the storage solution among Category I, II, III and IV type of locations is due to the amount of data generated and processed in these locations. Higher capacity storage solution is proposed at Category I & II type locations, where as relative lower storage capacity solution is proposed for category III and IV type of locations.

Data Digitization The cost of variance in the data digitization is due to the variance in the number of records existing in these categories of locations.

Note: Minimum configuration for the various components is provided in Section 3 of the report.


80


81


82


83


84

Annexure 6. Draft MoU

MEMORANDUM OF UNDERSTANDING BETWEEN THE STATE GOVERNMENT OF -------------- AND PARTICIPATING ULBs (AS PER ANNEXURE) AND THE MINISTRY OF URBAN

DEVELOPMENT, GOVERNMENT OF INDIA

This Memorandum of Understanding (MoU) is drawn on the ------------ day of ---------------, 200* between the State Government of ------------- and the Department of Urban Development, Ministry of Urban Development, Government of India.

Whereas State Government of ---------------- (also representing the various ULBs in the State as per mutual agreement described in Annexure) both the parties have carefully gone through the contents of the Memorandum of Understanding (MoU) and both have signed and put their seals on the aforesaid MoU and agreed to abide by the terms and conditions as laid down therein in totality.

The State Government and the Urban Local Bodies realize their Constitutional obligation to provide various mandatory and obligatory civic services to the citizens.

Government investments in e-Governance in Municipalities aims assist the Municipal Bodies across India to improve service delivery mechanism, achieve better information management and transparency and ensure utmost citizen’s involvement in participative governance

The role of Ministry of Urban Development, Government of India would be to provide necessary support to the State Government and Urban Local Bodies in their effort in this regard.

Commitment to National Mission Mode Project for e-Governance in Municipalities principles

The State Government/Urban Local Bodies commit itself to the following reform principles as part of the National Mission Mode Project for e-Governance in Municipalities principles :-

To Be Documented after we finalize the Draft Report

State e-Governance Policy for Municipalities

Based on the Design Document for NMMP and State’s own e-Governance Strategy, the State Government/Urban Local Bodies would formulate a comprehensive policy for e-Governance in Municipalities with a clear road map for implementation of the NMMP.

The comprehensive policy would address, inter alia, the following issues:-


85

Vesting of Urban Local Bodies/identified institutions with functions and finances, to implement NMMP

Enaction and implementation of changes to law required to implement the NMMP; Institutional strengthening and capacity development of the State and ULB level

institutions Evolving Capital cost sharing principles between the stake holders Delineation of the role of the State Government/Urban Local Bodies in respect of

sustainability issues and providing technical, administrative and financial support to implement NMMP

Detailing of the operational procedures for implementing NMMP and Identification of the Nodal Agency for implementing NMMP in the State.

The comprehensive policy of the State Government/Urban Local Bodies shall be adopted by the State Cabinet.

Action Plan

Based on the State Vision Statement and the comprehensive strategy, the State Government/Urban Local Bodies would formulate an Annual Action Plan through an interactive process with ULBs, with clearly set qualitative, quantitative and financial targets, reflecting participative planning and implementation.

It shall incorporate specific time frame for initiation and conclusion of all activities necessary for attainment of the objectives laid down in the Design Document of the NMMP and the State Strategy for Municipalities.

Financing the requirements of the sector


The State Government/Urban Local Bodies would carefully make an estimate of the fund requirements for the sector for the attainment of the goals outlined in the Design Document of the NMMP and the State e-Governance Strategy for Municipality

The State Government/Urban Local Bodies would take into account funds receivable from all sources for e-Governance in Municipalities. This would include funds expected to be received from Government of India, State Government, External Funding Agencies, funds raised by the Panchayati Raj Institutions, contributions, if any, from any other source.

The State Government/Urban Local Bodies shall set up the following Funds management system at the State level/ULB Level for the purposes specified against each of them:



86

Institutional Arrangements


The State Government/Urban Local Bodies commits to take active steps to enable the Urban Local Bodies of the appropriate level to plan, design, execute, operate, maintain and monitor the e-Governace Project.

Towards this end, the State Government commits to transfer, in a phased manner, adequate funds, functions and functionaries to the ULBs.

If, following any decision of the State Government, there is any increase in the

Role of the Nodal Department


Independent Monitoring Arrangements


Implementation of the MoU


Incentives


Disincentives


Basis for action

The MoU will form the base for undertaking all activities in the NMMP by the Government of India, State Government and ULBs.

The MoU shall be approved by the State Cabinet and shall be signed by the State Chief Secretary on behalf of the State Government and the Secretary to Government of India, Ministry of Urban Development.


87

List of Abbreviations Abbreviation Description ATI Administrative Training Institute AUWSP Accelerated Urban Water Supply Programme BCP Business Continuity Planning BOO Build Operate Own BOOT Build Operate Own Transfer BOT Build Operate Transfer BPR Business Process Reengineering BPR Business Process Reengineering CAG Controller and Auditor General CBA Cost Benefit Analysis CoE Center of Excellence CPHEEO Central Public Health and Environmental Engineering Organization CSC Common Service Centres DIT Department of Information Technology, GoI DMA Directorate of the Municipal Administration DPR Detailed Project Report DWSC District Water and Sanitation Committee DWSM District Water and Sanitation Mission FIFO First In First Out FIRE Financial Institution Reform and Expansion FRS Functional Requirement Specifications G2C Government to Consumer G2G Government to Government GIS Geographic Information System GoI Government of India GP Gram Panchayat GPR Government Process Reengineering HSD High Speed Diesel HUDCO Housing and Urban Development Corporation IC Implementation Committee ICT Information and Communication Technologies ICT Information and Communications Technology INTACH Indian National Trust of Art and Culture Heritage IOL Interactive Onsite Learning JV Joint Venture MA&UD Municipal Administration and Urban Development Department M&E Monitoring and Evaluation MIO Municipal Information Officer MMP Mission Mode Project MoU Memorandum of understanding MoUD Ministry of Urban Development MPMU Municipality Programme Management Unit MWS&SB Metropolitan Water Supply and Sewerage Board NeGP National e-Governance Programme NGO Non-Government Organization NISG National Institute for Smart Government


88

NMMP National Mission Mode Project for e-Governance in Municipalities NUIS National Urban Information System NURM National Urban Renewal Mission PC Project Champion PeMT Project e-Governance Mission Team PHE Public Health Engineering PIU Project Implementation Unit PMF Project Management Framework PMGSY Pradhan Mantri Gram Sadak Yojana PMT Programme Monitoring Tool PoP Point of Presence PPP Public Private Partnerships PR Panchayat Raj RD Rural Development RFP Request for Proposals SD Swajal Dhara SDC State Data Centres SeMT State e-Governance Mission Team SIRD State Institute of Rural Development SLA Service Level Agreement SPV Special Purpose Vehicle SRRDA State Rural Roads Development Agency SRS System Requirement Specifications SSA Sarva Sinkshya Abhiyan SUIO State Urban Information Officer SWAN State Wide Area Network SWSM State Water and Sanitation Mission TCP Town and Country Planning TSC Total Sanitation Campaign UD Urban Development UDD Urban Development Department ULB Urban Local Body ULR Computerization of Urban Land Records UT union territory VWSC Village Water and Sanitation Committee


89

89

Annexure 6. Draft MoU

MEMORANDUM OF UNDERSTANDING BETWEEN THE STATE GOVERNMENT OF --------------

AND PARTICIPATING ULBs (AS PER ANNEXURE) AND THE MINISTRY OF URBAN

DEVELOPMENT, GOVERNMENT OF INDIA

This Memorandum of Understanding (MoU) is drawn on the ------------ day of -------------

--, 200* between the State Government of ------------- and the Department of Urban

Development, Ministry of Urban Development, Government of India.

Whereas State Government of ---------------- (also representing the various ULBs in the

state as per mutual agreement described in Annexure I) both the parties have

carefully gone through the contents of the Memorandum of Understanding (MoU) and

both have signed and put their seals on the aforesaid MoU and agreed to abide by the

terms and conditions as laid down therein in totality. The list of ULBs represented by

the state is also attached in Annexure II

The State Government and the Urban Local Bodies realize their Constitutional

obligation to provide various mandatory and obligatory civic services to the citizens.

Government investments in e-Governance in Municipalities aims assist the Municipal

Bodies across India to improve service delivery mechanism, achieve better information

management and transparency and ensure utmost citizen’s involvement in

participative governance

The role of Ministry of Urban Development, Government of India would be to provide

necessary support to the State Government and Urban Local Bodies in their effort in

this regard.

Commitment to National Mission Mode Project for e-Governance in Municipalities

principles

The State Government/Urban Local Bodies commit itself to the following outcomes as

part of the National Mission Mode Project for e-Governance in Municipalities principles


1. Financial

Sustainability

� Revenue enhancement

� Use of PPP

� Growth in municipality own revenues by at least 25% on a year to year basis for first three years

� Financial statements of the municipality

2. Enhanced

Transparency

� Effective citizen

redressal system

� 80% resolution of

grievances received through the

� Government order � System audit.


90

90

and

Accountability

� Operational right to information

Grievances Redressal Model within the defined service level

� Deployment of a system for meeting the requirements contained in the Right to Information Act

� Banning of manual records.


3. Process

Reform

• Online financial and management information system

• Implementation of standards and guidelines suggested in the design document.

• Accrual based accounting system

• Legislative changes.

� System audit � Government order

4. Clearly

Defined

Citizen

Services and

Service Levels

• Web Site / Common state wide portal for municipalities

• Availability of forms, citizen charters etc

• Online submission of forms

• Birth and death registration

- Registered Hospitals - Others

• Calculation and payment of property tax

• Payment of utility bills – water supply and sewerage

• Updated at least every 15 days, time stamp

• Online, updated within 24 hours of changes in forms, rules etc, if any

• Online, immediate acknowledgement

• Online and through service points (< 15 minutes)

• < 5 days

• Online tax calculator

• < 15 minutes through identified service points

• Online through e-Biz portal

• e-Bills to be available online;

• Payment online

• < 15 minutes through identified service

� Time stamp monitoring and SLA with hosting agency

� SLA with hosting

agency � System audit � System audit –


� System audit –





91

91

• Building approvals -Residential -Commercial and others

• Health programme - License (New) - Renewal

• Financial Accounting System

• Development projects

- Approved projects and fund allocations by wards - Physical and financial progress - Request for public comments before closure

• e-Procurement

• Grievances handling

-Acknowledgement - Resolution monitoring.

points

• <7 days

• <15 days

• < 5 days

• <30 minutes

• Double accounting, finalization of A/Cs within 3 months

• Online & at service centres , within 1 day of project approvals

• Online & at service centres, updated within 15 days

• Online & at service centres, 7 days after completion

• Integration with state e-procurement module

• Immediate (through service points or online)

• Online (<7 days for all other than specified for which it would be <1 month.



� System Audit –


� Date of finalization

of accounts � System Audit –

Monitoring and evaluation framework

• Online � System audit –

monitoring and evaluation framework.

State e-Governance Policy for Municipalities

Based on the Design Document for NMMP and state’s own e-Governance Strategy, the

State Government/Urban Local Bodies would formulate a comprehensive policy for e-

Governance in Municipalities with a clear road map for implementation of the NMMP.

The comprehensive policy would address, inter alia, the following issues:-


92

92

� Vesting of Urban Local Bodies/identified institutions with functions and finances,

to implement NMMP

� Enaction and implementation of changes to law required to implement the NMMP;

� Institutional strengthening and capacity development of the State and ULB level

institutions

� Evolving Capital cost sharing principles between the stake holders

� Delineation of the role of the State Government/Urban Local Bodies in respect of

sustainability issues and providing technical, administrative and financial support

to implement NMMP

� Detailing of the operational procedures for implementing NMMP and

� Identification of the Nodal Agency for implementing NMMP in the State.

The comprehensive policy of the State Government/Urban Local Bodies shall be

adopted by the State Cabinet.

Action Plan

Based on the State Vision Statement and the comprehensive strategy, the State

Government/Urban Local Bodies would formulate an Annual Action Plan through an

interactive process with ULBs, with clearly set qualitative, quantitative and financial

targets, reflecting participative planning and implementation.

It shall incorporate specific time frame for initiation and conclusion of all activities

necessary for attainment of the objectives laid down in the Design Document of the

NMMP and the State Strategy for Municipalities.

The State Government/Urban Local Bodies would carefully make an estimate of the

fund requirements for the sector for the attainment of the goals outlined in the Design

Document of the NMMP and the State e-Governance Strategy for Municipality

The State Government/Urban Local Bodies would take into account funds receivable

from all sources for e-Governance in Municipalities. This would include funds expected

to be received from Government of India, State Government, External Funding

Agencies, funds raised by the Panchayati Raj Institutions, contributions, if any, from

any other source.

The State Government/Urban Local Bodies shall set up the following Funds

management system at the State level/ULB Level:

It has been suggested that the funds earmarked for state wide rollout (after Phase I)

can be routed through the State Nodal Agency for e-Governance, established under

the NeGP. The nodal agency can release funds directly to the project based upon the

request of the PIU and after getting concurrence from the PeMT (who would be in-

charge of the Project Monitoring and Evaluation). In this case, a separate bank account

in a specified scheduled bank may be maintained by the PIU (to be operated by the


93

93

designated Project Manager) to receive funds from the state Government and

Government of India. Funds would be provided by MoUD to the nodal agency, after

review of project progress by MPMU.

Institutional Arrangements

Proposed Institutional Structure for NMMP

SeMT: State e-Governance Mission Team – as defined under NeGP

PeMT: Project e-Governance Mission Team – as defined under NeGP


94

94

The under mentioned institutional committees/teams/units constitute the

institutional structure.

At the Central (Programme) Level

• Implementation Committee (IC) would be responsible for the time bound

implementation of the NMMP and adherence to NeGP objectives and

• Municipalities Programme Management Unit would act as the Technical Secretariat

to the Apex Committee headed by the Programme Champion.

At the State (Sub-programme) Level

• State level Sanctioning Committee would be responsible for the Implementation of

the NMMP in the state and

• SeMT( State e-Governance management Team) will be responsible of appraisal of

the projects and monitoring the activities

• PeMT (State Implementation Consultants) would serve as the technical secretariat

to the State Municipalities Mission Implementation Committee and serve as a

source of internal capacity for implementing the NMMP in the State.

At the ULB (Project) Level

• Project Implementation Unit (Project Manager) would be responsible for the

project implementation at the ULB

• A Functional Team would be responsible for implementation assistance and

ownership of the new system and MIS requirements at the ULB level and

• A Technical Team would be responsible for application development for the core

nine modules.

The State Government/Urban Local Bodies commits to take active steps to enable the

Urban Local Bodies of the appropriate level to plan, design, execute, operate,

maintain and monitor the e-Governace Project.

Towards this end, the State Government commits to transfer, in a phased manner,

adequate funds, functions and functionaries to the ULBs.

Basis for action

The MoU will form the base for undertaking all activities in the NMMP by the

Government of India, State Government and ULBs.

The MoU shall be approved by the State Cabinet and shall be signed by the State Chief

Secretary on behalf of the State Government and the Secretary to Government of

India, Ministry of Urban Development.

Documents

1* !pdf.usaid.gov/pdf_docs/pdacw412.pdf · Organization Structure of ULBs ... (ULBs) in India. Municipalities form ... the learnings arising out of the various individual e-governance