1. Slide 1 Course: e-Governance Project Lifecycle Day 1 Session 4 References on e-Gov Project Implementations

2. Slide 2 Agenda  e-Governance Project Reference in G2B Services  e-Governance Project Reference in G2C Services

3. Slide 3 G2B Projects: e-Procurement for efficiency & transparency in Public Procurement

4. Slide 4 Issues in Public Procurement Lack of a common Public Procurement Policy Public Procurement Law and regulations Dedicated Agency Transparency in Procurement Act Lack of model bidding documents and contract documents Complicated procedures for bidding, approvals and payments. Lack of skilled resources No centralized system of registration of suppliers Delays in making payments to suppliers

5. Slide 5 Range of Procurement Services Indent Generation & Approval Procurement Process Tenders, Auctions, Reverse Auctions, Rate Contract, Catalogue Buying Demand Aggregation Bid Evaluation Award & Purchase Order Supply Management Quality Management Inventory Management Payments Management MIS & EIS

6. Slide 6 Categorization of Procurements By Category of Goods & Services Goods Services Civil Contracts By Nature of Procurement Tenders Rate Contract & Catalogue Buying Auctions, Reverse Auctions LCB, NCB, ICB By Size / Volume of procurement High Value, low volume Low value, High Volume By Portfolio of services needed Requisition, Bid Process Evaluation, Award, PO Supply, Quality check, Inventory Management Payment, Accounting, Audit MIS, EIS

7. Slide 7 What is e-Procurement ? It’s a collaborative procurement of goods, works and services using electronic methods in every stage for bringing in efficiency & transparency

8. Slide 8 The Buy-side IssueApproach Complexity of Procurement ProceduresProcurement Reforms Wide Range of items to be procured -Goods -Works -Services Conduct an ABC Analysis Select ‘A’ items initially Organizational ResistanceChange Management Lack of IT Skills among employeesTraining Lack of resources with GovernmentPublic-Private-Partnership

9. Slide 9 The Sell-side IssueApproach Difficulties in changing over to new systems of tendering Supplier adoption Low levels of technological skillsTraining Help Desk Difficulties in access to siteE-Procurement help centres Resistance to changeChange Management

10. Slide 10 The ‘e-Procurement system’ side IssueApproach Difficulties in establishing & maintaining the system By sharing responsibility through PPP Lack of Financial resources for maintenance & transaction handling Designing appropriate business model Levy of service charges Concerns of Confidentiality of bids Authenticity of bids Digital Signature Certificates Varying requirements of Multiple Departments Process Reforms Standards-based system

11. Slide 11 A case Study in e-Procurement - Andhra Pradesh

12. Objectives of GoAP Overview of GoAP e-GP System Better value for money for government Significantly reduced cost and time of doing business for both government and suppliers Level playing field, “fair” competitive platform and single registration for the suppliers Increased transparency, monitoring and control of procurement process Leverage buying power through demand aggregation

13. Project Implementation Calendar Overview of GoAP e-GP System YearMilestone 2000 Cabinet sub committee recommended e-Procurement 2001 e-Procurement included in e-Governance roadmap of A.P (prepared by PwC) 2001 Engaged PwC as Consultant for conceptualizing e-GP system and selection Implementation Partner 2002 Selected Implementation Partner (C1 India) 2003 Pilot launched in 4 departments ( Procurement Value > Rs 10 million) 2005 Scale up for Procurement of above Rs 1 million

14. e-Procurement Roll-out: Current Status Overview of GoAP e-GP System Pilot Roll-Out Pilot Departments Commissionerate of Tenders (CoT) Andhra Pradesh State Road Transport Corporation (APSRTC) Andhra Pradesh Technology Services Ltd (APTS) Andhra Pradesh Health Medical Housing & Infrastructure Development Corporation Roll-out 12 Government Departments 18 Public sector Units 68 Municipalities 4 Universities, 2 Government Aided Agencies

15. e-Procurement Roll-out: Current Status Overview of GoAP e-GP System Pilot Roll-Out Year Number of Tenders Value (Rs billion) 2003-04 9906.33 2004-05 3614127.91 2005-06 773463.98 2006-07 16084271.43 2007-08 22675386.07 2008-09 26237317.71

16. Range of Procurements Handled by the System Overview of GoAP e-GP System Works, Goods and Services contracts Design & Build (Turnkey) contracts Procurement Types Highest value Rs 23.50 billion Irrigation project Lowest value Rs 55,000 by a Municipality Procurement Value 65 bidders for a single tender 347 tenders closed on a single day (26th May’06) 3500 Government users, 17000 suppliers Volumes handled

17. Impact of e-Procurement Roll-out Overview of GoAP e-GP System Saved Rs. 24 billion* of tax payer’s money on account of competitive bids in first 4 years of roll-out Bidder Participation increased* by 25%Reduction* in transaction time from 120 days to 35 days *Source: GoAP Presentations Illustrative

18. Cost Savings - Analysis Overview of GoAP e-GP System Year No. of tenders ECV (Rs. million) TCV (Rs. million) % below ECV Manual 2001-021887552.97355.7(-)2.65 2002-03 1255583.6 5100.7 (-) 8.65 System Based 2003-0416011016.98842.1(-) 19.74 2004-05947555.66670.9(-) 12.02 Source: Presentations from GoAP Reduction in Tendered Contract Value (TCV) from Estimated Contract Value* (ECV) *ECV the estimated cost of the Work which is published as part of the Tender. Bidders are expected to quote a percentage value above or below ECV

19. Comparison between Conventional and e-GP systems Overview of GoAP e-GP System Year No. of tenders ECV (Rs. million*) TCV (Rs. million) % below ECV e-Procurement (2003-04)1077335.55499.3(-)25 Conventional (2003-04)533681.43347.8(-) 9 e-Procurement (2004-05) 90 7255.2 6382.9 (-)12% Conventional (2004-05) 5 300.4 288.0 (-) 4% Comparison between the two systems for the same year

20. GoAP e-GP System Business Model - Ownership Overview of GoAP e-GP System Complete Data Ownership by GoAP Joint System Ownership by GoAP and PPP Partner Option for GoAP to buy the Software Application & Hardware at the end of Contract period (July 2009) at the Residual Value Application Source Code maintained in an Escrow Account PPP partner customizes the solution as per the department requirements and IT readiness of the department

21. Key Learnings from GoAP e-GP Implementation Overview of GoAP e-GP System Support of top political leadershipHigh-powered steering committee led by major line departmentsSingle mode of bid submission (electronic) to be mandatedA participative design process involving all stakeholdersStrong security features to increase credibility and trust of the system Identification and Training of e-GP ChampionsExtensive Change Management initiativesCommitted project teams from both PPP Partner and the Government24X7 help desk and Supplier Adoption programsA rational and affordable Pricing model

22. Benefits from e-Procurement Introduction to e-Government Procurement S No.Parameter Paper based System E-procurement 1Procurement Cycle timeMonthsWeeks 2Procurement CostHigh Better value for money 3Transaction CostHighLow 4CompetitionLimitedHigh 5Demand aggregationMinistry levelCountry level 6Spend VisibilityLowHigh, Real time 7Process VisibilityLow, RestrictedOnline 8Access to InformationLimited Faster, Cheaper & Accurate 9AuditabilityLowHigh

23. MCA21 MCA21 is one of the Central Mission Mode Projects, designed for electronic service delivery by the Ministry of Company Affairs (MCA) The project involved large scale Government Process Re-engineering and IT enablement of processes The Legal framework governing the regulation of corporate sector in India (companies registration, compliance filing etc) was amended to give sufficient legal backing to the e-Governance initiative As on date, all company registrations and compliance filings are mandated to be filed online

24. MCA21 – Background Ministry of Company Affairs’ primary function is the administration of Companies Act, 1956, other allied Acts and rules & regulations framed there-under The following services were proposed to be made online through the MCA21 project: -Registration and incorporation of new companies -Filing of Annual Returns and Balance Sheets -Filing of forms for change of names/address/Director’s details -Registration and verification of charges -Inspection of documents -Applications for various statutory services from MCA -Investor grievance redressal

25. Situation before MCA21 Company incorporation and compliance filing was done manually at Registrar of Companies (RoC) offices in States and Union Territories Each RoC also acted as the registry of records relating to the companies registered with them, which are made available for inspection by members of public on payment of prescribed fee Company data in silos in RoC offices in paper form Time consuming process for filing and inspection Lack of transparency and reduced service levels Investor grievances given low priority Difficulty in doing any quantitative analysis of corporate information

26. MCA21 Benefits After MCA21 rollout Online registration and incorporation of companies Simplified and easy mode of fi ling of e-forms / returns Online registration and verification of changes Centralized Data repository and online inspection of documents by public Key Benefits Anytime / anywhere service to corporate Corporate centric approach Increased transparency Enhanced service levels MCA employees and devote more time to doing value added tasks including data analysis Timely grievance redressal

27. MCA21 eServices Status

28. Snapshot of MCA21 implementation (1/3) Automation of processing at RoC offices Centralised Repository of Company Information e-Filing Facilitation centres Front Office Back Office MCA21 portal as the single window for filing of information online Facilitation centres set up at select location to ease transition from manual to e- filing Processing of filings and Internal functions of MCA computerized Old records at each RoC digitized and made available online

29. Snapshot of MCA21 implementation (2/3) Source: MCA21 Process Handbook, Ministry of Company Affairs

30. Snapshot of MCA21 implementation (3/3) e-filing made mandatory, with Digital Signature Certificates All payments to be made through e-Payments (Online banking / credit cards / payment at designated bank branches) e-Stamping mandated wherever stamp duty is to be paid Unique Company Identification Numbers (CIN) assigned to each registered company Directors of Companies to obtain Director Identification Number (DIN) Facilitation counters gradually being phased out in favour of filing at customer’s premises

31. Legal Framework for the MCA21 project The processes of Company Registration and Compliance filing were based on the Companies Act, 1956 (and the Rules made there-under) and the Monopolies and Restrictive Trade Practices Act 1969 The other relevant Acts included: - The Competition Act, 2002 - The Chartered Accountants Act, 1949 - The Costs and Works Accounts Act, 1959 - The Company Secretaries Act, 1980 - The Partnership Act, 1932 - The Societies Registration Act, 1860 - The Companies (Donation to National Fund) Act, 1951

32. Why do we need legal amendments? The following questions arise… Does the electronic records have the same validity as the paper records How do I make it legally mandatory to file company information online? The Companies Act does not talk about CIN / DIN.. What if a company goes to court insisting on its right to file returns in paper form?

33. Providing Legal Framework for the MCA21 project Some of these legal questions are answered by IT Act: - Digital Signature signing and submission of e-forms - Equivalence of electronic and paper records… But the domain legislation needs to be amended to reflect the new processes and procedures.. Laws to be amended to incorporate enabling provisions, leaving procedural issues to be handled in subordinate legislation Subordinate legislation to be amended, detailing the new process regime

34. Amendment to Companies Act, 1956 Amendments to mandate Director Identification Number: Amendments to sections 253 & 266 A to 266F to mandate every Director to obtain a DIN. No Director to be re-appointed without obtaining a DIN Insertion of provisions 610B to 610E to mandate electronic filing: 610B: Filing of inspections, documents, applications etc through e-forms, as prescribed in the Rules RoC to maintain such documents in electronic form 610C: Powers to central government to modify Act in relation to electronic records (including manner and form of filing) 610D: Provision for providing value added services 610E: Provisions of IT Act to apply in items relating to electronic records Specifics of e-Filing, Payments, Inspection etc incorporated in Companies General Rules and Forms, 1956

35. G2C Projects:

36. eSeva - Government of Andhra Pradesh One-stop-shop for citizen/ business services Extended Service Delivery Hours > 8 AM to 8 PM, Open on holidays for half a day More than 1,60,000 Transactions per day Any service at any centre, any counter G2C (utility bill payment, register birth/deaths, passport), G2B (sales tax), B2C services Investment of Rs 537 million by private partner. Operating expenses of Rs 169 million/year

37. Centers were established by AP Government in partnership with private sector Services delivered through these center include tax payments, issue of certificates, application for documents from different agencies of state, local, central government and private sector under one roof. Each center has a number of counters operated by private contract staff. eSeva centers provided with good infrastructure and facilities to cater to the good quality service needs eSeva - Government of Andhra Pradesh

38. eSeva Evolution Adding services to grow transaction volume-Government departments, private service providers Adding service centers to enhance convenience and increase volumes eSeva counters in Banks-assisted by operator AP online kiosks-assisted by operator Access portal directly via Internet Cutting costs- contract staff at centers paid by the Banks in return for business Expanding into district towns and rural areas Enhancing revenues through advertisement Increasing use of private contract staff

39. eSeva Journey Pilot in HYD – Dec 1999 Launch (HYD & RR) – Aug 2001 116 Municipal towns – June 2003 >263 Centres spread over in 116 towns 150 + Services under one roof Electricity Bill, Water bills Motor vehicle tax, House tax Passport, Bus passes And B2C services like telephone bills, Money transfer etc Slide 39

40. Transactions Twin Cities of Hyderabad & Rangareddy > 60,000 per day > INR 8 Crores per day Municipal towns >1,00,000 per day > INR 12 Crores per day Over 1,60,000 citizens served everyday Slide 40

41. Ambience : Traditional Vs eSeva Conventionale-Seva Centers

42. eSeva: Compared to Conventional System Conventional System Citizen goes to designated departments for different services Stands outside counter without shelter A manual receipt will be issued No online verification of payments Works only on working days in office hours. eSeva Centers Citizen goes to any counter in any center for any service Many services from state, central, local govt./ private sector under one roof Centers have seating capacity in a waiting hall and in front of the counters. There is a token system for managing queues. Computer generated receipt is issued Online verification of payments Works outside office hours and on weekends and holidays too.

43. Indicators of Success Limited formal evaluation by an independent agency IIMA study- annual travel cost savıng of 6.0 mıl dollars. Avoıd wage loss of 13.0 mıl dollars. Saves 11.5 mıl hrs Growing transaction volume – Currently 3.1 million per month Requests for opening centers in specific areas by legislators and associations Recognition and awards 97% citizen’s prefer eSeva over departmental counters. Private sector (banks) keen to partner in providing additional channels

44. eSeva Coordination - CSF

45. Business Model of eSeva 5-year BOOT Model Government’s role Site preparation Cost of counter operators (outsourced) Coordination Partner’s role Software development & maintenance Hardware, networking, security Consumables, power Service deliver Revenue realization for the implementation partner through transaction fee paid for each transaction delivered at eseva centers

46. eSeva – Study by World Bank “eSeva is close to VERY GOOD” – World Bank Significant improvement over the manual system Lowered the cost of travel by Rs.9.30/Txn Waiting time halved – 32.9 min to 14.6 min Overall score (1 point scale) – 0.597 to 0.914 eSeva system was preferred over departmental system by 96.84% of respondents Slide 46

47. Bhoomi Project - Karnataka Bhoomi (meaning land) is the project of on-line delivery and management of land records in Karnataka. Provides transparency in land records management with better citizen services and takes discretion away from civil servants at operating levels. e-Governance project for the computerized delivery of 20 million rural land records to 6.7 million farmers through 177 Government-owned kiosks in the State of Karnataka. This system works with the software called “BHOOMI” designed fully in-house by National Informatics Center, Bangalore.

48. Objectives of Bhoomi project Facilitate easy maintenance and prompt updatation of land records. Make land records tamper proof. Provide farmers easy access to their land records. Create and construct databases of land revenue, cropping pattern, land use, etc. Utilize the data for planning and formulating development programmes. Enable usage of this database by courts, banks, private organizations and Internet Service Providers (ISPs). Bhoomi Project - Karnataka

49. The system features the following: Fully computerised system to carry out mutations on land records data Finger print biometrics authentication to ensure fool proof authentication system and to enforce the concept of non- repudiation. Facility to scan the field mutation order passed by revenue authorities and the notice served on the public Synchronizes with the regular field work done by Village Accountants and Revenue Inspector Bhoomi Project - Karnataka

50. Benefits of Bhoomi project: Farmers can quickly get their land records from Kiosks and are protected from harassment and extortion. Farmers can lodge application for mutation to their land records at the mutation kiosks, get acknowledgement for the same and can monitor the progress using touch screen kiosks Support for development programs, based on valuable land records data like various crops grown in a village or a sub district Easy maintenance and updation of land records documents. Courts would be able to make use of land record database for adjudicating various civil disputes related to ownership, possession and cultivation Accurate and timely preparation of annual records like land revenue etc. Online connectivity to financial institutions would help banks in planning for their farm credit related activities. Bhoomi Project - Karnataka