Signpost - EY newsletter for Government and the Public sector

EY newsletter for Government and the Public sector

SignposttInside:

Smart ticketing to improve transport infrastructure and enable increased efficiency in order to enhance commuter experience

Megha Health Insurance Scheme

Infrastructure planning and investment promotion in Chhattisgarh

Development of National Occupational Standards for supporting skill in India

It gives me great pleasure to present the fourth edition of Signpost, EY’s newsletter on the Government and how we are supporting it in its initiatives.

Like with previous editions, this edition also contains four case studies on ongoing and completed projects. These case studies will give you an insight into our capabilities and the success we have achieved in managing large and complex government projects in a time-bound way.

This edition aims to bring to you new approach to smart ticketing for improving accessibility to integrated transport network, health insurance with private sector participation, industrial infrastructure and investment promotion to improve quality of life of citizens and enabling efficient framework toward development of National Occupational Standards (NOS) for various sectors such as beauty and wellness, food processing etc. We hope you like the fresh outlook and approach on some of the significant government programs in India.

To increase patronage, reduce fraud and increase accessibility to an integrated transport network for the commuters, Kochi Metro Rail Limited (KMRL) along with Kochi Unified Metropolitan Transport Authority (UMTA) introduced the smart ticketing system for fare collection. It is combined with flexible ticket purchasing methods and the smart card is integrated with other smart-enabled utilities such as retail, banking, entertainment etc.

In order to combat increased health care expenditure, Government of Meghalaya (GoM) implemented the Megha Health Insurance Scheme (MHIS) with the help of International Finance Corporation (IFC) and World Bank to create a sustainable and practical health insurance scheme for all the residents of the State , including existing categories of RSBY beneficiaries but excluding State and Central Government employees.

The last two initiatives are a step toward improving the overall quality of life of the people. Government of Chhattisgarh (GoC) planned and developed industrial infrastructure in the state along with a better investment ecosystem to create jobs and improve public services. EY helped in planning infrastructure development and bringing in investments in emerging sectors such as defense, IT, textiles etc. To boost the skill initiative in India, it was essential for National Occupational Standards (NOS) to come up with standards to act as an input to training curriculum and help in assessment of the potential job candidates employed by the respective industry.

Do continue to share your feedback and ideas with me at [email protected] I look forward to hearing you.

Kind regards

Gaurav Taneja India Government and Public Sector Leader

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Overview and challenges:

Kochi Metro Rail Limited (KMRL), along with Kochi Unified Metropolitan Transport Authority (UMTA), envisioned introduction of Common Mobility Card (CMC) across all identified modes of public transport in Kochi while keeping the convenience and experience of the commuter as the key objective. KMRL wanted to introduce a common mobility card, which would be a transit-cum-EMV (Europay, MasterCard and Visa)-based prepaid/debit/credit card. It could be used for transit and merchant payments. This card can be implemented through a close integration between transit operators, card technology providers and financial institutions (FI). EY was selected by KMRL to design a business strategy and financial model for on-boarding of financial institutions.

Support and intervention:

EY assisted KMRL in designing a smart ticketing service using open payment standards, which converts the metro travel smart card into a general purpose payment card using EMV-based payment standards. EY has designed a new model that attracts financial institutions along with their technology partners to invest and deliver the smart ticketing service. The model has resulted in capital expenditure (Capex) savings of around US$45million (estimated) for KMRL. It has also garnered additional benefits in the form of annual royalty amounting to US$34 million for more than 10 years from FIs for giving them access to the commuter base with exclusive co-branding rights, and additionally a share of non-fare FI revenue from conventional merchant commissions on card transactions, outside transit. EY assisted KMRL to create a business strategy, financial modelling, and bid management and vendor selection.

Result and impact:

FI-led consortium model offers truly a win-win for transit operator, FI and commuters. The transit-cum-EMV-based smart card will have all the capabilities of being a CMC for multiple modes of transport in Kochi and also enable the usage of co-branded smart cards on any merchant terminal to accept retail EMV cards according to the standards of the Reserve Bank of India (RBI).

• For KMRL increased customer patronage, improved product validation, smart card acting as e-Wallet (electronic Wallet), access through digital channels — all this will translate into improved customer interaction and increased revenue augmentation. The financial institution will offset the investment required by KMRL toward capital and revenue expenditure of smart ticketing program, pay royalty for customer access and share non-fare FI revenue with KMRL.

• For FI will lead to harness big data collected from millions of customer’s journey, form a more accurate customer demand forecast and design and deliver seamless and integrated customer experience. KMRL would also share 4% of ticketing transactions with FI.

• For commuter who is central to this transformational project will be assured of a holistic, integrated, personalized experience and result in the business culture of “Customer First” along with bringing loyalty benefits. Beyond public transportation, improved city design and increased citizen participation will mean a smart environment and living.

EY’s services


Implementation of the smart ticketing project will help the transit operator to increase patronage, reduce fraud, reduce operating cost, have rapid cash collections and increase accessibility to an integrated transport network for commuters.

EY’s IT Risk and Assurance Services practice maintains an exclusive focus on government clients and their individual needs through our Government Advisory business unit. The focused Government Advisory Group provides advisory and consulting services in e-Governance, IT Governance, Information Security and Risk Management, Third-Party Audit, Nationwide contingency planning along with budget planning process and review. For more details contact:

Rahul Rishi Partner – IT Risk and Assurance, EY Tel: +91 11 43633183 Email: [email protected]

3 Signpost, EY newsletter for Government and public Sector


“EY has closely worked with KMRL in developing the innovative and unique model of Smart Card

Ticketing. EY did a great job in designing this business model which offers great advantages

to KMRL as well as commuters who will have access to co-branded smart cards to meet

their transport requirements and also other mercantile and internet transactions”

Ved Mani Tiwari Director (Systems), KMRL


Overview and challenge

Over the years, health care expenditure has increased manifold. It has also become one of the reasons, which is driving already poor people toward abject poverty. The Government of Meghalaya wanted to address this concern while creating a solution on the back of RSBY framework. The prevailing RSBY scheme in the state had the following feature:

• Coverage only to Below Poverty Line (BPL) families

• Cover limited to INR30,000 per family per year

• Cover for hospitalization care; catering to diseases treated in the secondary care settings.

Government of Meghalaya (GoM) intended to implement the Megha Health Insurance Scheme (MHIS) with the help of IFC and World Bank to create a sustainable and practical health insurance scheme for all the residents of the State. The MHIS is conceived to leverage on the funding available under RSBY from the Ministry of Labour and Employment, Government of India for BPL and other specified categories.

Support and Intervention

The Government of Meghalaya appointed IFC as the Lead Transaction Advisor to design the Megha Health Insurance Scheme (the Scheme) and to conduct the bid process for appointment of the insurer pursuant to the Scheme (the Project). IFC engaged EY as the Consultant for the project.

EY assisted the IFC and GoM in structuring the MHIS project and also to carry out the transaction process. It focused on assisting in conceiving the new scheme, defining the package and pricing for the newly introduced packages. EY also helped in defining the State Nodal Agency organizational structure, carrying out the transaction, preparing a framework for monitoring and evaluation, and evolving mechanism for improving enrolment, empanelment and utilization.

Result and Impact

Under the scheme, beneficiary families (five members) are entitled up to INR160,000 coverage at the time of hospitalization on a floater basis.

The number of identified packages (medical and surgical procedures) increased from 1,036 to 1,697. The enrolment increased to 63.1% of the data touched. The number of hospitals empaneled under the scheme increased from 65 (in RSBY) to 170 in MHIS including 10 out of 11 private hospitals in the State. Utilization also increased several times during the year demonstrating the usefulness of the scheme.

The State Nodal Agency had 18 full-time employees (FTEs) as compared to 0.5 FTE in the previous year. Therefore, the interventions suggested that as a part of MHIS made substantial changes in the scheme.

Partner identified – ICICI Lombard General Insurance.

Megha Health Insurance Scheme(MHIS) has been rolled out as a universal health insurance scheme (UHIS) in Meghalaya, utilizing the prevailing RSBY framework to provide health insurance to residents of the State, including existing categories of RSBY beneficiaries but excluding State and Central Government employees.

Megha Health Insurance Scheme

EY’s Public Private Partnership Services focus on development of infrastructure and provisioning of related services through private sector participation. It aims to develop efficient assets and effective service delivery systems by leveraging the potential of the private sector. As part of our service, we advise government bodies on conceiving relevant projects, performing technical and financial viability studies, structuring and implementing optimal risk-sharing mechanisms and putting in place bid process management systems to select private players. We also advise governments on post-award activities including financial closure and project management.

For more details contact:

Abhaya Krishna Agarwal Partner and Leader, Commercial and Infrastructure, Government Services, EY Tel: +91 11 43633060 Email: [email protected]




The program was initiated with an aim to deliver increase in the State’s gross state domestic product (GSDP), job creation and improved public services to improve the quality of life of the people of Chhattisgarh. To achieve this objective, the GoC wanted to develop industrial infrastructure in the state along with a better investment ecosystem. The Government also wanted to attract private investment for the development of industrial infrastructure through public private partnership (PPP). As Chhattisgarh has been front runner in attracting investment in the State only in core sectors such as power, coal, cement, and steel, bringing investment in non-core sector and creating “enabling industrial infrastructure” for the same was one of the key challenges of the assignment.


The project is being implemented strategically with two components — industrial infrastructure development and investment facilitation/promotion working in tandem with each other. The first component involved physical, strategic, investment and process packing of projects, covering feasibility studies, project structuring, financial modeling and bid process management. The second component focused on identifying the priority sectors, suggesting regulatory and non-regulatory reforms to make investor-friendly ecosphere and attract investments.

Result and Impact

Industrial infrastructure plan was developed with identification of new regions of growth; special projects were detailed and transaction executed for Electronic Manufacturing Cluster, Food Park, and Textile Park. Investment proposition for newly identified sector were modeled. The team worked cohesively to improve “Ease of doing business” status of the state by simplifying the approval processes and developing best in class policies such as Industrial, IT, and Innovation policy. IT/ITeS sector investment roadmap was developed with strong focus on making the State as innovation hub of the country.

The GoC successfully connected with top-hundred and several medium-term investors, which helped create a strong brand for the state as the next potential investment destination.

Government of Chhattisgarh (GoC) wanted to plan, prioritize and develop “enabling industrial infrastructure” in the state and promote investments in emerging sectors. The EY team helped the State Government in planning infrastructure development and bringing in investments in emerging sectors such as defense, textile, IT, electronics, food processing, etc.

Infrastructure planning and investment promotion in Chhattisgarh

EY’s Commercial Infrastructure services focus on development of infrastructure and provisioning of related services through the participation of the private sector and regulatory/non-regulatory measures. It aims to facilitate development of state by efficient management of assets and effective service delivery systems by leveraging the potential of the private sector. As part of our service, we advise government bodies on developing models of sector development, designing relevant projects, performing technical and financial viability studies, and putting in place investment promotion and facilitation mechanism to engage private players in state growth. We also advise governments on post-project selection activities including financial closure and project management.


Siddhartha Das Executive Director Tel: +91 124 464 4202 Email: [email protected]


“Siddhartha, Sonia and team, on this most prestigious assignment in the state, have displayed

strong commitment and are committed to driving innovation and ensuring global experience

reaching out to us which helped us attain our objective more effectively and in much lesser time. The meticulous delivery of the EY team

reflected professional and timely approach towards the program. Working closely with the

team, I look forward to achieving many major milestones in private sector growth in our state.”

Mr. Sunil Mishra,

Managing Director, Chhattisgarh State Industrial Development Corporation, Government of Chhattisgarh



Development of NOS is the stepping stone to the skill initiative, since the standards act as inputs to developing training curriculum and assessment as well as certification of trainees. This contributes to the standardization in the skill development domain, enhancing employability and increasing skill mobility for the trained manpower. The standards play an important role in bridging the gap between vocational training and industry requirements. EY has been supporting NSDC and SSCs for many years. Some of the key aspects in developing the NOS and Qualification Packs (QP) are close collaboration and involvement of industry at each stage of the project. These are first of their kind of projects in the country.


To ensure effective delivery, the project team deployed a robust achievable approach. It identified various key players (across small, medium and large scale industries) in the respective sectors and collaborated with key industry professionals to bring in domain expertise and build buy-in for the initiative.

Furthermore, the team rolled out surveys to understand the sector growth, key roles and anticipated manpower requirements. This provided the database of key roles constituting around 80% of entry-level jobs in each of the sectors.

The team developed the occupational map for each of the sectors and sub-sectors highlighting key occupations and career progressions (horizontal, vertical and diagonal) within these occupations across National Skills Qualification Framework (NSQF) levels 1 to 10. It conducted a detailed functional analysis of identified functions articulating key roles within each of the functions, role-related specifications (i.e., qualification, experience and training requirements), key activities and key skills applicable to various identified roles.

For the identified role, the team developed QPs and NOSs detailing the job requirements, activities, skills and assessment criteria. The project team also applied benchmark practices from various countries such as the UK, Canada, Germany, Japan, New Zealand, and the US, which have undertaken similar initiatives in the past.

Furthermore, the team conducted workshops and one-on-one interactions to ensure industry endorsement for finalized occupational standards. The standards were then presented at NSDC’s Qualifications Review Committee (QRC) for approval leading to the publication for national deployment.

Result and Impact

EY has provided extensive support and deployed robust methodology to successfully conclude work with various sectors such as automobile, media and entertainment, iron and steel and mining and is currently working with handicrafts and carpets, food processing and beauty and wellness sectors. Various SSCs are now using the QPs and NOSs for developing training content and empanelling training and assessment agencies. With these steps undertaken, the SSCs will be ready to roll out large-scale skilling programs.

With the contribution in development of QP and NOSs, EY is well positioned in creating significant impact through downstream activities. This is a key strategic part of our endeavor to being a significant player in the entire skill development value chain.

EY has been awarded multiple mandates in the last few months to develop National Occupational Standards (NOS), which are key steps in the skill development journey in India. The work is delivered across various sectors such as automotive, iron and steel, mining, media and entertainment, handicrafts and carpets, beauty and wellness and food processing. This involves multi-stakeholder interactions in close coordination with the respective Sector Skill Councils (SSCs) and National Skill Development Council (NSDC).

Development of National Occupational Standards for supporting skill in India

EY’s Skill Development services focus on providing services that bridge the skill demand and supply gap across various sectors to serve the national skills agenda. The team is currently undertaking some of the largest integrated skills projects in the world.


Anurag Malik Partner, People & Organization, Business Advisory Services, EY Tel: +91 124 6714017 Email: [email protected]


“The content of the Qualification Packs created by EY was detailed and exhaustive. The quality of the QP NOS was appreciated by the industry and relevant stakeholders.”

Anaam Sharma, CEO,

Food Industry Capacity and Skill Initiative (FICSI) “The QP NOS for each job profile presented by EY were very detailed yet crisp and exhaustive and appreciated by all the Industry Players present.”

Annu Wadhwa, COO, Beauty and Wellness Sector Skill Council (BWSSC)

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Signpost - EY newsletter for Government and the Public sector