Building Sustainable Common Services Centres in Rural India 1 Building Sustainable Common Services Centres in rural India Ashis Sanyal, Senior Director

11Building Sustainable Common Services Centres in Rural India

Building Sustainable Common Building Sustainable Common Services Centres in rural IndiaServices Centres in rural India

Ashis Sanyal,Ashis Sanyal,Senior Director (e-Governance)Senior Director (e-Governance)

Department of Information Department of Information Technology,Technology,

Govt. of India, New Delhi – 110 003Govt. of India, New Delhi – 110 003


DisclaimerDisclaimer

The content in this presentation are The content in this presentation are comments and observations of the comments and observations of the

Presenter and do not reflect the Presenter and do not reflect the views of Government of Indiaviews of Government of India


Presently in IndiaPresently in India

Proliferation of Information Proliferation of Information and Communication and Communication

Technologies (ICT) have Technologies (ICT) have been perceived as an been perceived as an

important Key Performance important Key Performance Indicator (KPI) for Economic Indicator (KPI) for Economic Development of the regions Development of the regions hitherto unreached by ICThitherto unreached by ICT


Government has also taken a considered Government has also taken a considered decision on ICT interventions in all walks decision on ICT interventions in all walks

of Governance (e-Governance)of Governance (e-Governance)To provide a new face to the Government To provide a new face to the Government

leading to changing the entire gamut of leading to changing the entire gamut of relationship between Government and relationship between Government and CitizenCitizen

For fast, responsive and transparent For fast, responsive and transparent governancegovernance

For more effectively reaching the huge un-For more effectively reaching the huge un-reached population in remote rural areasreached population in remote rural areas

For significant reduction in cost of delivery For significant reduction in cost of delivery of government servicesof government services


Common Services Centre Common Services Centre SchemeScheme

In September 2006, Govt of India In September 2006, Govt of India approved a flagship Scheme to approved a flagship Scheme to establish 100,000 Common establish 100,000 Common Services Centres (CSC) across Services Centres (CSC) across rural India, with an estimated rural India, with an estimated total outlay of 1.44 bn USD to be total outlay of 1.44 bn USD to be expended over 4 yearsexpended over 4 years

-- One CSC per approx 6 villages.One CSC per approx 6 villages.


Some Important Features of Some Important Features of CSC SchemeCSC Scheme

A high-level programmatic approach in A high-level programmatic approach in implementation by outsourcing a National implementation by outsourcing a National Level Program ManagerLevel Program Manager

- National Level Service Agency (NLSA)- National Level Service Agency (NLSA) Single window service delivery for both G2C Single window service delivery for both G2C

and B2C services.and B2C services. Implementation through Public-Private-Implementation through Public-Private-

Partnership modelPartnership model Financial Support for a handholding period Financial Support for a handholding period

of four yearsof four years


Some Important Some Important Features of CSC Scheme Features of CSC Scheme

…contd…contd Three-tier Implementation / OperationThree-tier Implementation / Operation

– At the top level, the At the top level, the State Designated State Designated Agency (SDA)Agency (SDA) in 29 states in 29 states

– At the middle-level, the At the middle-level, the Service Center Service Center Agency (SCA)Agency (SCA), identified by each State , identified by each State through a bidding process (lowest bid through a bidding process (lowest bid for government support sought per CSC for government support sought per CSC per month for 4 years)per month for 4 years)

– At the bottom level, the actual Operator At the bottom level, the actual Operator of the CSC, the of the CSC, the Village Level Village Level Entrepreneur (VLE)Entrepreneur (VLE)


Current Scenario: Common Services Centres

Many ICT-enabled e-Community Centres by some Many ICT-enabled e-Community Centres by some States Govts. Civil Society entities, NGOs & Local States Govts. Civil Society entities, NGOs & Local EntrepreneursEntrepreneurs

– About 10, 000+ Centres currently functional About 10, 000+ Centres currently functional Models now available for Need Assessment Survey Models now available for Need Assessment Survey

Procedures, Demand Estimation, Impact Analysis, Procedures, Demand Estimation, Impact Analysis, Value Proposition for Services etc.Value Proposition for Services etc.

Still these are isolated efforts and Growth / Still these are isolated efforts and Growth / Expansion / Replication rate is far from desirableExpansion / Replication rate is far from desirable

Dept. of IT, Govt. of India launched the Scheme of Dept. of IT, Govt. of India launched the Scheme of CSC for calibrated interventions in Policy & CSC for calibrated interventions in Policy & Funding support to create enabling environment Funding support to create enabling environment for faster roll-out of such centresfor faster roll-out of such centres


Perceived Objectives: Common Services Centres

To create a To create a low cost vehiclelow cost vehicle for government for government institutions so that easy, direct and cost-effective institutions so that easy, direct and cost-effective delivery of e-governance services to the rural citizen delivery of e-governance services to the rural citizen be possiblebe possible

To develop, test and demonstrate, To develop, test and demonstrate, portfolio of portfolio of products and servicesproducts and services which can be delivered through which can be delivered through these Centresthese Centres

To customize and deliver To customize and deliver standard products and standard products and servicesservices as per local needs as per local needs

To To build capacitybuild capacity for support system for new for support system for new enterprise and infrastructure for such delivery outletsenterprise and infrastructure for such delivery outlets

To provide To provide a platforma platform to Civil Society Organizations to Civil Society Organizations and NGOs to reach and communicate with remote and and NGOs to reach and communicate with remote and isolated communitiesisolated communities Contd…


Perceived Objectives: Common Services Centres

To demonstrate that to bring To demonstrate that to bring sustainable sustainable economic and social growtheconomic and social growth in underserved rural in underserved rural India by using the benefits ICT, one has to take India by using the benefits ICT, one has to take sustainable business approach and not merely a sustainable business approach and not merely a philanthropic approachphilanthropic approach

(By meeting all these objectives above) to create (By meeting all these objectives above) to create significant and lasting impact on rural livelihoodsignificant and lasting impact on rural livelihood in the areas of empowerment, equal opportunity, in the areas of empowerment, equal opportunity, gender equity, social inclusion, better gender equity, social inclusion, better governance, employment generation and human governance, employment generation and human developmentdevelopment

…Contd


The Services ModelThe Services Model

E-Government Services

Market Linkages

Education, Healthcare, Agricultural Extension,

etc

Entertainment

Data Collection,

Rural BPOs, etc.

Save Costs

Quality of Life

Social Development

Create Income Opportunities

Value-adds

The power of the CSC would lie in its focus on content customization and multi-lingual delivery of End-to-End

Services


RURAL SERVICE DELIVERY

High income, upper caste, large land holding group with High income, upper caste, large land holding group with adequate literacy, health and Housingadequate literacy, health and Housing– Market prices, Land records, News, Entertainment, E-mail, Market prices, Land records, News, Entertainment, E-mail,

HealthHealth Low income, small land holding, small traders, poor Low income, small land holding, small traders, poor

literacy, health and housingliteracy, health and housing– Education, Health, Market Prices, Government LoanEducation, Health, Market Prices, Government Loan

Low/No income, no fixed employment, backward class, Low/No income, no fixed employment, backward class, poor literacy, health and dwelling, no land holdingpoor literacy, health and dwelling, no land holding– Eligibility Certificates for Anti-poverty Schemes, Health, Eligibility Certificates for Anti-poverty Schemes, Health,

EducationEducation

Rural Society & Service Requirements

Contd…


RURAL SERVICE DELIVERY

Key Parameters to be considered

Rural DynamicsRural Dynamics– Expected to play a major role as it defines the volume of Expected to play a major role as it defines the volume of

transaction and kind of service mix. transaction and kind of service mix.

– Population is the major factor which indicates volume as Population is the major factor which indicates volume as

well as revenue generationwell as revenue generation Rural EconomicsRural Economics

– BPL & APL data would determine the impactBPL & APL data would determine the impact Rural InfrastructureRural Infrastructure

– Geographic dispersion, power, road, telephone etc. play Geographic dispersion, power, road, telephone etc. play

major rolemajor role Contd…

…Contd


Rural Service Delivery

Not sustainable sustainable Viable Profitable

1 2 3 4 5 6 7 8 9 10

Segment value of a village = Rural Dynamics (7) + Rural Economics (1.5) + Rural Infrastructure (1.5)

Framework Segmentation of Villages

Contd…

…Contd


GovernmentGovernment– Certificates, Licenses, Grievance RedressalCertificates, Licenses, Grievance Redressal– Law & Order, Govt. Welfare SchemesLaw & Order, Govt. Welfare Schemes

PrivatePrivate– Market prices, Education, News, Entertainment, Market prices, Education, News, Entertainment,

CommunicationCommunication Govt. – PrivateGovt. – Private

– Mixed ServicesMixed Services

Rural Service Delivery

Most of the current initiatives targeting services in a particular market segment, not quite achieving self-sustainability

Contd…

…Contd


Finance

Government

Infrastructure providers

Corporates operating in rural areas

e-Service providers

Communities/markets

Government NGOs

Business

Delivery network

Network orchestrator

Villagekiosk

Regionalhub

Agro-business

Consumer products

Info

rmati

on,

serv

ices,

money

,

good

s?

Hardware,software,connectivity

Policy,funding schemes

Policy,funding

e-Gov

ernan

ce

initi

ative

s

Information

services

New business

services

...with Delivery Network at the Coreof a Network of Stakeholders


Government Service Delivery Government Service Delivery StrategyStrategy

In course of time, all services would be In course of time, all services would be web-based, any-time, any where basisweb-based, any-time, any where basis– At present limited information-based services are on the At present limited information-based services are on the

net net – Multiple channel Service delivery to continue for some Multiple channel Service delivery to continue for some

time to cometime to come

Capacity Building program for the HR to Capacity Building program for the HR to cope up with the situationcope up with the situation– Wide level training for the Govt. officials on software Wide level training for the Govt. officials on software

applications, infrastructure handling, change applications, infrastructure handling, change management and Government process re-engineeringmanagement and Government process re-engineering

Back-end automation and readiness for net-Back-end automation and readiness for net-based service deliverybased service delivery


Government-on-line is a very complex issueGovernment-on-line is a very complex issue– Many Technical, Financial, Management & Risk issuesMany Technical, Financial, Management & Risk issues

Single window e-Service Delivery through Single window e-Service Delivery through Common Services Centres at remote place Common Services Centres at remote place warrants appropriate dis-aggregationwarrants appropriate dis-aggregation– Structuring of Front EndStructuring of Front End

– Structuring of Back EndStructuring of Back End

– Middleware for all Technical, Financial and Middleware for all Technical, Financial and

Management parametersManagement parameters

Building Rural Common Services Centres

Macro Issues


Organisational Support to deliver Organisational Support to deliver G2C servicesG2C services

Different levels of authorisation Different levels of authorisation for the SCA/ VLE for delivery of for the SCA/ VLE for delivery of G2C servicesG2C services

Authorisation for revenue sharing Authorisation for revenue sharing for revenue-based G2C servicesfor revenue-based G2C services

Nominal fees to be levied from Nominal fees to be levied from citizen for information-based G2C citizen for information-based G2C services services


Other Key Parameters for Sustainability

Viable Business modelViable Business model Min Range of ServicesMin Range of Services Partnership: Entrepreneur, Industry, Partnership: Entrepreneur, Industry,

GovtGovt Role of the Local GovtRole of the Local Govt Aligning existing Govt programsAligning existing Govt programs Eligibility of EntrepreneursEligibility of Entrepreneurs Aggregation: Recommended Reach / Aggregation: Recommended Reach /

Geographical SpreadGeographical Spread


Good GovernanceGood Governance

EmpowermentEmpowerment

Equal OpportunityEqual Opportunity

Human DevelopmentHuman Development

Income / Employment GenerationIncome / Employment Generation

Common Services Centres : Common Services Centres : ConclusionsConclusions

Impact On Rural Livelihood


Ministry of Environment & Forests,Government of India

Common Services CentresCommon Services Centres

““No power can stop an No power can stop an idea whose time has idea whose time has

come”come”

- Victor Hugo- Victor Hugo


““The dreams of the digital empowerment The dreams of the digital empowerment of rural India aren’t dreams any more. of rural India aren’t dreams any more. They are slowly taking real shapes in the They are slowly taking real shapes in the hands of the rural poor, who with luck hands of the rural poor, who with luck and IT on their side, will not remain and IT on their side, will not remain impoverished much longer”impoverished much longer”

- - DATA QUEST, Sept.30DATA QUEST, Sept.30thth, 2004, 2004A leading fortnightly IT Magazine of IndiaA leading fortnightly IT Magazine of India


Thank YouThank You

For For

Your Kind AttentionYour Kind [email protected]@mit.gov.in

Documents

Building Sustainable Common Services Centres in Rural India 1 Building Sustainable Common Services Centres in rural India Ashis Sanyal, Senior Director