1. Building Sustainable Common Services Centres in Rural India 1 Building Sustainable Common Services Centres in rural India Ashis Sanyal, Senior Director (e-Governance) Department of Information Technology, Govt. of India, New Delhi – 110 003

2. Building Sustainable Common Services Centres in Rural India 2 Disclaimer The content in this presentation are comments and observations of the Presenter and do not reflect the views of Government of India The content in this presentation are comments and observations of the Presenter and do not reflect the views of Government of India

3. Building Sustainable Common Services Centres in Rural India 3 Presently in India Proliferation of Information and Communication Technologies (ICT) have been perceived as an important Key Performance Indicator (KPI) for Economic Development of the regions hitherto unreached by ICT Proliferation of Information and Communication Technologies (ICT) have been perceived as an important Key Performance Indicator (KPI) for Economic Development of the regions hitherto unreached by ICT

4. Building Sustainable Common Services Centres in Rural India 4 Government has also taken a considered decision on ICT interventions in all walks of Governance (e-Governance) Government has also taken a considered decision on ICT interventions in all walks of Governance (e-Governance) To provide a new face to the Government leading to changing the entire gamut of relationship between Government and Citizen To provide a new face to the Government leading to changing the entire gamut of relationship between Government and Citizen For fast, responsive and transparent governance For fast, responsive and transparent governance For more effectively reaching the huge un- reached population in remote rural areas For more effectively reaching the huge un- reached population in remote rural areas For significant reduction in cost of delivery of government services For significant reduction in cost of delivery of government services

5. Building Sustainable Common Services Centres in Rural India 5 Common Services Centre Scheme In September 2006, Govt of India approved a flagship Scheme to establish 100,000 Common Services Centres (CSC) across rural India, with an estimated total outlay of 1.44 bn USD to be expended over 4 years In September 2006, Govt of India approved a flagship Scheme to establish 100,000 Common Services Centres (CSC) across rural India, with an estimated total outlay of 1.44 bn USD to be expended over 4 years - One CSC per approx 6 villages.

6. Building Sustainable Common Services Centres in Rural India 6 Some Important Features of CSC Scheme A high-level programmatic approach in implementation by outsourcing a National Level Program Manager A high-level programmatic approach in implementation by outsourcing a National Level Program Manager - National Level Service Agency (NLSA) Single window service delivery for both G2C and B2C services. Single window service delivery for both G2C and B2C services. Implementation through Public-Private- Partnership model Implementation through Public-Private- Partnership model Financial Support for a handholding period of four years Financial Support for a handholding period of four years

7. Building Sustainable Common Services Centres in Rural India 7 Some Important Features of CSC Scheme …contd Three-tier Implementation / Operation Three-tier Implementation / Operation –At the top level, the State Designated Agency (SDA) in 29 states –At the middle-level, the Service Center Agency (SCA), identified by each State through a bidding process (lowest bid for government support sought per CSC per month for 4 years) –At the bottom level, the actual Operator of the CSC, the Village Level Entrepreneur (VLE)

8. Building Sustainable Common Services Centres in Rural India 8 Current Scenario: Common Services Centres Many ICT-enabled e-Community Centres by some States Govts. Civil Society entities, NGOs & Local Entrepreneurs Many ICT-enabled e-Community Centres by some States Govts. Civil Society entities, NGOs & Local Entrepreneurs – About 10, 000+ Centres currently functional Models now available for Need Assessment Survey Procedures, Demand Estimation, Impact Analysis, Value Proposition for Services etc. Models now available for Need Assessment Survey Procedures, Demand Estimation, Impact Analysis, Value Proposition for Services etc. Still these are isolated efforts and Growth / Expansion / Replication rate is far from desirable Still these are isolated efforts and Growth / Expansion / Replication rate is far from desirable Dept. of IT, Govt. of India launched the Scheme of CSC for calibrated interventions in Policy & Funding support to create enabling environment for faster roll-out of such centres Dept. of IT, Govt. of India launched the Scheme of CSC for calibrated interventions in Policy & Funding support to create enabling environment for faster roll-out of such centres

9. Building Sustainable Common Services Centres in Rural India 9 Perceived Objectives: Common Services Centres To create a low cost vehicle for government institutions so that easy, direct and cost-effective delivery of e-governance services to the rural citizen be possible To create a low cost vehicle for government institutions so that easy, direct and cost-effective delivery of e-governance services to the rural citizen be possible To develop, test and demonstrate, portfolio of products and services which can be delivered through these Centres To develop, test and demonstrate, portfolio of products and services which can be delivered through these Centres To customize and deliver standard products and services as per local needs To customize and deliver standard products and services as per local needs To build capacity for support system for new enterprise and infrastructure for such delivery outlets To build capacity for support system for new enterprise and infrastructure for such delivery outlets To provide a platform to Civil Society Organizations and NGOs to reach and communicate with remote and isolated communities To provide a platform to Civil Society Organizations and NGOs to reach and communicate with remote and isolated communities Contd…

10. Building Sustainable Common Services Centres in Rural India 10 Perceived Objectives: Common Services Centres To demonstrate that to bring sustainable economic and social growth in underserved rural India by using the benefits ICT, one has to take sustainable business approach and not merely a philanthropic approach To demonstrate that to bring sustainable economic and social growth in underserved rural India by using the benefits ICT, one has to take sustainable business approach and not merely a philanthropic approach (By meeting all these objectives above) to create significant and lasting impact on rural livelihood in the areas of empowerment, equal opportunity, gender equity, social inclusion, better governance, employment generation and human development (By meeting all these objectives above) to create significant and lasting impact on rural livelihood in the areas of empowerment, equal opportunity, gender equity, social inclusion, better governance, employment generation and human development …Contd

11. Building Sustainable Common Services Centres in Rural India 11 The 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

12. Building Sustainable Common Services Centres in Rural India 12 RURAL SERVICE DELIVERY High income, upper caste, large land holding group with adequate literacy, health and Housing High income, upper caste, large land holding group with adequate literacy, health and Housing – Market prices, Land records, News, Entertainment, E-mail, Health Low income, small land holding, small traders, poor literacy, health and housing Low income, small land holding, small traders, poor literacy, health and housing – Education, Health, Market Prices, Government Loan Low/No income, no fixed employment, backward class, poor literacy, health and dwelling, no land holding Low/No income, no fixed employment, backward class, poor literacy, health and dwelling, no land holding – Eligibility Certificates for Anti-poverty Schemes, Health, Education Rural Society & Service Requirements Contd…

13. Building Sustainable Common Services Centres in Rural India 13 RURAL SERVICE DELIVERY Key Parameters to be considered Rural Dynamics Rural Dynamics – Expected to play a major role as it defines the volume of transaction and kind of service mix. – Population is the major factor which indicates volume as well as revenue generation Rural Economics Rural Economics – BPL & APL data would determine the impact Rural Infrastructure Rural Infrastructure – Geographic dispersion, power, road, telephone etc. play major role Contd… …Contd

14. Building Sustainable Common Services Centres in Rural India 14 Rural Service Delivery Not sustainablesustainableViableProfitable 12345678910 Segment value of a village = Rural Dynamics (7) + Rural Economics (1.5) + Rural Infrastructure (1.5) Framework Segmentation of Villages Contd… …Contd

15. Building Sustainable Common Services Centres in Rural India 15 Government Government –Certificates, Licenses, Grievance Redressal –Law & Order, Govt. Welfare Schemes Private Private –Market prices, Education, News, Entertainment, Communication Govt. – Private Govt. – Private –Mixed Services Rural Service Delivery Most of the current initiatives targeting services in a particular market segment, not quite achieving self-sustainability Contd… …Contd

16. Building Sustainable Common Services Centres in Rural India 16 Finance Government Infrastructure providers Corporates operating in rural areas e-Service providers Communities/m arkets Govern ment NGOs Business Delivery network Network orchestrator Village kiosk Regional hub Agro- business Consumer products Information, services, money, goods? Hardware, software, connectivity Policy, funding schemes Policy, funding e-Governance initiatives Information services New business services...with Delivery Network at the Core of a Network of Stakeholders

17. Building Sustainable Common Services Centres in Rural India 17 Government Service Delivery Strategy In course of time, all services would be web- based, any-time, any where basis In course of time, all services would be web- based, any-time, any where basis –At present limited information-based services are on the net –Multiple channel Service delivery to continue for some time to come Capacity Building program for the HR to cope up with the situation Capacity Building program for the HR to cope up with the situation –Wide level training for the Govt. officials on software applications, infrastructure handling, change management and Government process re-engineering Back-end automation and readiness for net-based service delivery Back-end automation and readiness for net-based service delivery

18. Building Sustainable Common Services Centres in Rural India 18 Government-on-line is a very complex issue Government-on-line is a very complex issue – Many Technical, Financial, Management & Risk issues Single window e-Service Delivery through Common Services Centres at remote place warrants appropriate dis-aggregation Single window e-Service Delivery through Common Services Centres at remote place warrants appropriate dis-aggregation – Structuring of Front End – Structuring of Back End – Middleware for all Technical, Financial and Management parameters Building Rural Common Services Centres Macro Issues

19. Building Sustainable Common Services Centres in Rural India 19 Organisational Support to deliver G2C services Different levels of authorisation for the SCA/ VLE for delivery of G2C services Different levels of authorisation for the SCA/ VLE for delivery of G2C services Authorisation for revenue sharing for revenue-based G2C services Authorisation for revenue sharing for revenue-based G2C services Nominal fees to be levied from citizen for information-based G2C services Nominal fees to be levied from citizen for information-based G2C services

20. Building Sustainable Common Services Centres in Rural India 20 Other Key Parameters for Sustainability Viable Business model Viable Business model Min Range of Services Min Range of Services Partnership: Entrepreneur, Industry, Govt Partnership: Entrepreneur, Industry, Govt Role of the Local Govt Role of the Local Govt Aligning existing Govt programs Aligning existing Govt programs Eligibility of Entrepreneurs Eligibility of Entrepreneurs Aggregation: Recommended Reach / Geographical Spread Aggregation: Recommended Reach / Geographical Spread

21. Building Sustainable Common Services Centres in Rural India 21 Good Governance Good Governance Empowerment Empowerment Equal Opportunity Equal Opportunity Human Development Human Development Income / Employment Generation Income / Employment Generation Common Services Centres : Conclusions Impact On Rural Livelihood

22. Building Sustainable Common Services Centres in Rural India 22 Ministry of Environment & Forests, Government of India Common Services Centres No power can stop an idea whose time has come - Victor Hugo

23. Building Sustainable Common Services Centres in Rural India 23 The dreams of the digital empowerment of rural India arent dreams any more. They are slowly taking real shapes in the hands of the rural poor, who with luck and IT on their side, will not remain impoverished much longer - DATA QUEST, Sept.30 th, 2004 A leading fortnightly IT Magazine of India

24. Building Sustainable Common Services Centres in Rural India 24 Thank You For Your Kind Attention asanyal@mit.gov.in