Egov

Citizen Service Centers Under the

National e-Governance Plan

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Case Study: CSC

Background Governments worldwide are striving to deliver more and better services to their citizens through channels that are convenient as well as economical. In this technology has played the most important role and has revolutionized the ways of working. Information and communication technology can be a powerful enabler of developmental goals as its use can dramatically improve communication and exchange of information to strengthen and create new economic and social networks. Technology facilitates disintermediation, as it makes it possible for users to acquire products and services directly from the original provider, reducing the need for intermediaries. It is also transparent it does not differentiate on the basis of economic status, religion or castes of its users. Access to information, backed with relevant infrastructure and services, not only allows rural populace to improve its quality of life but also supports and supplements its existing incomes in a sustainable way. Large number of population in India lives in the rural area which is still living in 18 th century arena. Making the technology available to them is an achievement in itself. Rural consumers are willing to pay for products and services that meet their needs and are offered at affordable prices. Therefore, what Rural India needs is a new social contract in which there will be common access infrastructure, provided at commercial prices rather than given for free. The Government recognizes the role of IT as an effective tool in catalyzing economic activity, in efficient governance and in developing human resource. This policy seeks a deep impact initiative by the Government in encouraging replacement of traditional delivery system of public services by IT driven system of governance that works better, costs less and is capable of serving the citizens’ needs with ease. This meant fundamental changes in the ways of working of the government. The result is the emergence of e-Government, which simply stated, is the use of technology to enhance the access to and delivery of government services for the benefit of citizens of the country. Access to information and services like eGovernment, micro-credit, literacy, education, health, etc., can provide a solid foundation for the economic prosperity of rural India. Traditionally e-Governance has been defined as an IT enabled route to good governance. Basic idea behind e-Governance include enhancing transparency, generating accountability and responsiveness in the system in order to provide faster and quality service to the citizen. This would enable citizens to have the choice of accessing government information and services.

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Case Study: CSC

National e Governance Plan The Government of India has formulated the National e-Governance Plan (NeGP) with the vision of providing all government services in an integrated manner at the doorstep of the citizen, at an affordable cost. The NeGP initiatives consist of 27 Central, State and Integrated Mission Mode Projects (MMPs) along with 8 other support components for rapid introduction of e-governance in the country. The NeGP envisions a three pillar model for delivery of “web-enabled Anytime, Anywhere access” to information and services in rural India. These are: • • •

Connectivity: State Wide Area Networks (SWANs)/NICNET National Data Bank/ State Data Centres ( SDCs) Citizen Service Centers (CSCs)

The National E Governance Plan is a flagship initiative of the Central Government aimed at management of change and re-engineering of Government processes besides establishing the necessary technological infrastructure needed for promoting integrated use of IT in governance. The NeGP is an enormous step towards making the Government accessible to citizens, in ways that can not only save huge costs to the Government but also make it more transparent and efficient in its day-to-day interactions with the common man. To that effect, the role of Citizen Services Centers, envisaged as the front-end delivery network for Government services assumes great significance. The vision of NeGP is to make all Government services accessible to the common man in his locality, through common service delivery outlets and ensure efficiency, transparency & reliability of such services at affordable costs to realise the basic needs of the common man.

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Case Study: CSC

Citizen Service Centers The Department of Information Technology (DIT), Government of India has announced a National Level Scheme to create a network of 100,000 access points termed Citizen Services Centers (CSCs) as outlets for essential services in rural India. The CSCs are ICT-enabled. To be effective, however, Information and Communication Technology (ICT) needs to be woven into existing systems and processes in a localized fashion. The challenge is to build a sustainable business model that emerges out of the developmental needs of the rural population of India. The CSCs would provide high quality and cost-effective video, voice and data content and services, in the areas of e-governance, education, health, telemedicine, entertainment as well as other private services. A highlight of the CSCs is that it will offer web-enabled e-governance services in rural areas, including application forms, certificates, and utility payments such as electricity, telephone and water bills. The CSC Scheme is envisaged to be a bottom-up model for delivery of content, services, information and knowledge, that can allow like-minded public and private enterprises, through a collaborative framework to integrate their goals of profit as well as social objectives, into a sustainable business model for achieving rapid socio-economic change in rural India.

Public Private Partnership (PPP): To undertake such a mammoth task calls for participation of leading thought leaders and agencies involved in rural markets. It is proposed that a Public Private Partnership model can undertake this challenging task in the most effective way. A PPP is a facilitating framework that enables sustainable development by effectively leveraging limited public funds, integrating scale with efficiency; reducing life cycle costs, harnessing national resources and looping best practices, to achieve a social purpose. A PPP provides a format in which all the important stakeholders are incentivized to come together in achieving the community development goals enshrined in the project. To that effect, a PPP framework is more than a Joint Venture.

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Case Study: CSC

Objectives of CSCs

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Provide citizen centric services of the State and Central Government in a convenient and efficient manner through Enhance the accountability, transparency and responsiveness of the Government to citizen’s needs. Provide efficient and cost effective methods of service delivery to departments and agencies Allow private and social sector to collaborate with the Government to offer world-class services in rural India Train village level entrepreneurs in business and IT management skills Empower the rural citizen through information dissemination and market linkages To provide one stop venue for all citizen centric services. Time-bound service delivery has resulted in improving the efficiency of delivery of the services Elimination of corruption and middlemen from the process. Provision of a wide spectrum of services at a single place has helped in saving citizens the trouble of going to various departments Integration of data bases of government departments and organisations. This integration has also forced user departments to carry out process reengineering and standardisation in delivery of services. Creation of jobs in the districts for the local IT-savvy youths. The utility of information technology to be spread among the masses.

CSC can play a role of an effective “change agent” that would provide a structured platform for socially inclusive community participation for collective developmental activities. Such change, it is undertaken through three important components: • • •

A Public Private Partnership (PPP) Framework Rural Entrepreneurship and Market Mechanisms Government policy and support

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Case Study: CSC

Structure of CSC’s The Service Centre Agency (SCA) is the prime driver of the CSC Scheme and the owner of the CSC business. The CSC structure is envisaged as follows: • • • • •

At the first level is the Village Level Entrepreneurs (VLEs). At the second level is the Service Centre Agency (SCA). At the third level is the agency designated by the State- the State Designated Agency (SDA) - to facilitate implementation In addition, the DIT has appointed a National Level Service Agency (NLSA) to support the SDA as well as the SCAs to enable the CSC business in the State In addition, an SPV proposed to undertake the day-to-day monitoring of the CSC Scheme on behalf of the Government.

CSC Structure DIT NLSA

STATE GOVERNMENT

SPV

SDA

SCA

VLE

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Case Study: CSC

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The State Designated Agency (SDA): The CSC Scheme is rolled out in the State through the SDA. The SDA plays three major roles as follows: 1. Facilitator for policy, regulatory and other relevant changes with the State Government 2. Facilitator for enabling e-Government services 3. Enabler for infrastructure and other support to the SCA

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Service Centre Agency (SCA): The SCA is the prime driver of the CSC eco-system. The SCA is the owner of the CSC network in pre-defined areas of operations in the State. The SCA undertakes activities such as identifying the required applications and services, harnessing the State network, identifying and training the VLE, establishing the CSC (either directly or through the VLE), supplying, aggregating and updating content and services and so on. The SCA is supported by the NLSA and the respective State Designated Agency (SDA) to implement the CSC Scheme.

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Village Level Entrepreneur (VLE): The VLE is the key to the success of the CSC operations. A good VLE is one who has good entrepreneurial skills, strong social commitment as well as respect within the community. The VLE manages the CSC business at the ground level. Selection and proper training of the VLE would play a vital role in effective implementation of the CSCs.

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National Level Service Agency (NLSA): A project of this scale poses significant challenges of project management at the national level. Significant economies of scale can be achieved in the identification, customization and implementation of the physical and digital infrastructure required for the project. Further, many of the potential citizen-centric services would lend themselves to aggregation at the national level. To enable the State-specific implementation plans to benefit from such economies of scale, aggregation of best practices, content providers, etc., a National Level Service Agency (NLSA) has been appointed by the DIT for facilitating the rollout process on a Public Private Partnership format.

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Case Study: CSC

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Special Purpose Vehicle (SPV): In addition to the NLSA, an SPV has been proposed to undertake the day-to-day monitoring of the CSC Scheme on behalf of the Government. The SPV would undertake the following key roles and responsibilities: 1. Lay down operating and financial guidelines within the CSC system 2. Providing a framework for collaborative decision making process 3. Catalyzing and maintaining content aggregation on an on-going basis 4. Build a common “Identity” The SPV will have equity partners who would invest in the SPV, like DIT, NLSA, Strategic Investors. The Equity Capital of the SPV, in part, may also be subscribed to by the SCAs. The exact amount of investment would be determined at a subsequent juncture. The SPV may also be made responsible for channelizing the Government support to the SCAs. The SCAs are expected to pay a fee to the SPV for all the above assistance / services.

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Case Study: CSC

Determining the CSC locations The aim of the CSC scheme is to establish 100,000 rural kiosks across the country with an equitable distribution, 1 CSC for every 6 census villages. The SCA is free to locate the CSCs anywhere within a Block within the overall ceiling prescribed by the govt. The SCA however, needs to ensure that, not more than one (1) CSC is established in one Gram Panchayat, unless the number of Gram Panchayats in a Block is less than the number worked out as per 1:6 criteria. In case the SCA decides to establish more CSCs than defined, those additional CSCs would not be entitled for any revenue support. The State may at its discretion ask the SCA to increase the number of CSCs in its divisons on mutually acceptable terms and conditions

Government Support 1. No Capital Subsidy is envisaged under the CSC Scheme 2. However, the track record of rural projects, underscores the need and essentiality for financial support. It is therefore proposed to cover the revenue gaps and associated risks, which arise in rural markets. 3. To ensure sustainability, the SCAs would be provided support in the form of a “Minimum Revenue Assistance / Guarantee against Governmental services”. 4. The state govt. would support the SCA in setting up the centers and tackling the issues pertaining to law and order and help from district administration.

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Case Study: CSC

Connectivity As part of the National e-Governance Plan (NeGP) of the Government of India (GOI), a State Wide area Network (SWAN) has been established to provide reliable broadband connectivity across the State up to the block level. SWAN has been identified as the core connectivity option for supporting the CSCs. The SWAN Scheme has established 2 Mbps connectivity bandwidth up to the block level. It is envisaged that SWAN would be set up before the CSCs are operational. The State/DIT will work with the SCA to determine the appropriate last mile connectivity options available. Connectivity requirements of the SCA may be divided in two parts: •

Connectivity between the CSC and the Data Centre where the G2C eGovernment services are to be delivered from;

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Connectivity for the other private services (B2C) to be delivered through CSCs. Over and above, SCA needs to work out the connectivity required to centrally manage the CSCs under its establishment. SCA may have various options to meet the above connectivity requirements.

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Case Study: CSC

CSC Service Profile The CSCs offer a multitude of services ranging in the areas of e-Government, education, health, agriculture, commercial, retail, etc. To that effect, possible service areas are listed below: 1. Key Government Services i Land records ii Registration iii Issue of certificates/ Government schemes iv Employment exchange services v Ration cards vi Electoral services vii Pension schemes viii Road transport ix Public grievance x Utility/Telephone Bills 2. Business to Consumer (B2C) services i Commercial Services ii e-Commerce/online services iii Education Services iv Entertainment v Agriculture Services vi Business-to-Business services (B2B) • Advertising & Promotion Services • Data Collection Services • Distribution Services • Financial Services

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Case Study: CSC

CSC Status

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Case Study: CSC

Challenges Faced •

Non availability of IT infrastructure at most of the states.

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Digitisation of govt. departments not done.

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District administrations in various states not aware of the central govt. initiative.

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Initial pilot project not done by the central govt.

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Large capital expenditure involved.

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At the same pace break even cannot be reached.

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No ownership of the project from state governments.

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Being a partner to the government in the project, citizens still do not have confidence on private companies.

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State govt. and district administrations not appraised that SCA are the partners to the govt. and not just vendors.

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Non availability of G2C services, which are most important for footfall.

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Sustainability of the centers difficult due to less footfall of public.

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Lack of publicity by the central and state govt.

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Pressure from local administration to vacate center premises due to non availability of G2C services.

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No timelines in place from the state govt. for starting various services.

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No uniformity in working of different state governments.

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Operation of centers difficult due to lack of electricity as well as connectivity in rural areas.

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Problems in identifying suitable operators and VLEs for centers.

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Due to operational costs, it is not possible to keep security guards at all the centers; hence possibility of theft remains a major issue.

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Non availability of funding to the VLEs.

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Case Study: CSC