E-governance: Why and How By Dr T.H. CHOWDARY* * Director: Center for Telecom Management and Studies Chairman: Pragna Bharati (intellect India ) Former: Chairman & Managing Director Videsh Sanchar Nigam Limited & Information Technology Advisor, Government of Andhra Pradesh T: +91(40) / (O) ® F: +91 (40) , OU Staff College

THC_CTMS S338 _Feb072 Why e- Governance (1/2) Governments (Union & State) are collecting and spending 30% of our GDP There are schemes on which upto Rs. 100,000 crores were spent but not completed even after 5 to 10 years Comptroller & Accountant General of India is writing history after history of waste and non-productive outlays Computerised MIS on nation-wide telecom network

THC_CTMS S338 _Feb073 Why e-governance (2/2) Least efficient, economic & transparent Eg: Projects in progress for 10 to 25 yrs – $ 25 bln unproductively locked up 25 mln homes claimed to have been built for 75 mln people in AP alone! 100% must be living in Govt Built houses! 13 mln. White ration cards for families below poverty line (80% of Population)

THC_CTMS S338 _Feb074 The Cost of Delay: Rs. 50,000 cr. Total Projects 742 ( 216 hit by cost overrun) RailwaysPowerAtomic Energy Urban Developme nt CoalPetroleu m No. of Projects Projects hit by cost overrun Original cost (Rs. crores) 25,1753,527 4, ,406 Extent of cost overrun 91.5%87.7% 115.9%52.2%29.6% (Source: Indian Express 31/8/2006)

THC_CTMS S338 _Feb075 Why E-Goverannce – “Socialism” at work Subsidies ( $ 6.2 bln. on food, kerosene & sugar and $ 4.5 bln on other items) Telephones: Apply, Apply – No Reply Government officials: Labour-lordism; Babu-bossism Insectification of citizen Sale of Information Move from office to office again & again

THC_CTMS S338 _Feb076 Why E- Governance- Revenues Rise (1) Taxes increase; Projects Multiply; so do offices Poverty Alleviation Poverty Eradication Integrated Rural Development Uplift of Utterly poor (Antyodaya –) Light to the dark (Velugu) C.M’s Employment of Youth Indira Awas ( Housing the poor)

THC_CTMS S338 _Feb077 Why E- Governance- Revenues Rise (2) 52 such programmes in 53 years since Illiteracy, poverty, large family – vicious circle, 15% of benefit money reaches the poor Garibi Hatao – again after 36 years 2 nd launch of multipoint “Backwardness Eradication” for Minorities.

THC_CTMS S338 _Feb078 ICTs in Governance Union & state governments are investing about Rs cr/year on various e- governance projects Eventually we must have e-elections Registration ( no enrollment) Electioneering ( TV & Radio channels, Toll free interrogation) Balloting (i) 80% saving on (ii) & reduction of need for black money

THC_CTMS S338 _Feb079 ICTs in Vision 2020 for Andhra Pradesh (then, India) ICTs as engines for economy, efficiency, development & growth e-MIS e-education e-Governance e-procurement e-Seva ( service) e-cops Tele-medicine Jobs for the educated

THC_CTMS S338 _Feb0710 e-Governance: G2B, C, G Since 1997 Pioneered by GOs of AP, KN and TN, all governments have programs of ICT use in government work. G2C: eg: e-Sevas, Land records, CARD G2B: eg: e-procurement G2G: eg: Filing tax returns, jail reservations G2G: eg: e-MIS; Treasuries, video conferencing G2B: eg: banking, purchases

THC_CTMS S338 _Feb0711 What E-Governance Can Deliver (2) Responsiveness & Accountability Dial the Chief Minister, Commissioner (Police, Municipal Corpn), Collector… Economy & Effectiveness E-Procurement e- Cops Better planning ( MPHS; GIS; Data Bank; Oversight, Speedy Correction ) Video in jails –prisoners not physically brought to courts – escapes prevented

THC_CTMS S338 _Feb0712 What E-Governance Can Deliver (3) Interviews from video- enabled Internet Kiosks # e-ways of SIFY (saving time & money) In courts – original documents scanned, stored on floppy/ CD; document theft avoided Land records, titles, encumbrances easily accessed by farmers (BHOOMI in Karnataka) E-Chaupal (ITC procurement & farmer education; market information); multi-services Rural Service Delivery Points ( for e-Seva of Andhra Pradesh )

THC_CTMS S338 _Feb0713 Some Spectacular Outcomes (1/5)  E-Procurement Award time reduced from 150 to 20 days On 52 e-tenders (Rs. 3.5 bln), 23% saving 1500 e-tenders in progress (Rs bln) in Procurement would cross Rs. 30,000 cr in 2007-’ % of tender value as commission (reduced to 0.05% in 2005)

THC_CTMS S338 _Feb0714 Some Spectacular Outcomes (1/5)  E-Seva in Andhra Pradesh One-stop-Shop for G2C services  e-filling of tax returns  e-Railway and air-line ticketing  e-Reservations for TTD pujas in Tirupati Multiple services offered at each counter Utility / Tax Payments Electricity, Water, Property Tax, Telephone bills Filing Sales Tax and Income Tax Returns

THC_CTMS S338 _Feb0715 Some Spectacular Outcomes (3/5) Certificates Birth / death certificates Encumbrance certificates for property Passport and Licenses Filing applications for passports Municipal trade licenses, Learner’s License, Vehicle registration … Bus tickets … train tickets, airline tickets, travel bookings Rail Reservations E-Payments on internet (

THC_CTMS S338 _Feb0716 Some Spectacular Outcomes (4/5)  CARD In-house execution of the Project More than 240 registration offices Old documents scanned and indexed 20 year title search in less than 15 mnts. Certified copies of registration deeds Encumbrance certificates Valuation slips for properties Registration deeds like sale, mortgage, lease& gift

THC_CTMS S338 _Feb0717 Some Spectacular Outcomes (5/5)  E-Communication with People Rail reservations Money transfers Filing income- tax returns Preservation of and access to precious documents, records – scanning & digitisation Video conference of government officers, Ministers with people ( portable VSAT & camera…)

THC_CTMS S338 _Feb0718 APNET Use of satellite technology for Distance education Training of Govt employees & SHGs Pilot Project operational for 2 years Expansion at advanced stage Earth Station operational since 4/02 Studio complex to be operational Mana TV Content development – current focus area 2000 remotes operational

THC_CTMS S338 _Feb0719 E-Communication with People Video-conferencing Face to face with Chief Minister Transportable VSATs and Discussion with Village Assemblies

THC_CTMS S338 _Feb0720 ICTs for Wealth and Employment

THC_CTMS S338 _Feb0721 Software Export Industry

THC_CTMS S338 _Feb0722 Employment in Indian IT sector*,’000 (* Years ending March; + break-up: NA)

THC_CTMS S338 _Feb0723 A.P’s Software and ITES Exports Year Volume (in Rs. Cr. ) 17,000 12,521 8,270 5, of Exports Visakhapatnam Units 37; Exports Rs. 70cr Vijayawada Units 13; Exports Rs. 24 Cr Number of direct employees 1,60,000 adding 30,000 to 40,000 per year

THC_CTMS S338 _Feb %1.9%2.82%3.8%5.0%6.5% India’s share in software exports in the over all global market

THC_CTMS S338 _Feb0725 Share of India in Global BPO & KPO Markets Year 2003-’ ’11 BPO 36% 55% KPO 56% 71%

THC_CTMS S338 _Feb0726 Foreign Companies Engaging Indian intellect (1/2) Motorola – 1700 employees 40% of software in its mobiles developed in India The Internet browser and multi-media messaging system conceived and developed for 3G and GSM and engineer The software going into US cars is being developed here in India.

THC_CTMS S338 _Feb0727 Foreign Companies Engaging Indian intellect (2/2) GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai GE put in $ 80 mln in the Bangalore R&D facility GE’s Bangalore R&D field for 260 patents in the USA (37 already approved) Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr) Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr Gorbachev went to USA to recommend Moscow as Bangalore’s rival! An Indian retained does the work of 2 or 3 Europeans; does not take 6 weeks of holidays & costs one-fourth

THC_CTMS S338 _Feb0728 Some foreign companies’ employees in India GE CapsGE DevIBMOracleEDSTexas 16,0001,80010, , IntelJP Morgan HUWAISiemensMotorola 1,7001,2001, ,500

THC_CTMS S338 _Feb0729 ICT-enabled Employment in Rural areas

THC_CTMS S338 _Feb0730 Work taken to Villages: GramIT (1) While US, EU, Oceania outsource to Hyderabad, Hyderabad out-sources to villages. Satyam Computers & Byraju Foundation 200 Resident village graduates ( BA, B.Com, B.Sc) trained in Ameringlish; imparted computer & Internet skills Satyam (Hyderabad HQ) outsourced its own internal work (pay-roll, accounting; travel; training; MIS Satisfied,work from abroad moved to villages

THC_CTMS S338 _Feb0731 Work taken to Villages: GramIT (2) Broad-band telecom (optical fiber) 512 kbps extended from point of presence (POP) to work-site by PMP wireless Called Gram ITs, these offer transaction processing services ( accounting, bulk mlng; records digitisation, reminder and follow-up and travel support. A whole Gram IT can be dedicated to a customer (like twinning of cities across continents; city twinning

THC_CTMS S338 _Feb0732 Work taken to Villages: GramIT (3) Gram IT-team contributed part of profits for village development scheme designed by them – Independent and local initiative Rural Pressure group to demand and get quality infrastructure and services such as roads, retailing, education, health

THC_CTMS S338 _Feb0733 Dhanyawad: Thank You