Regional Policy Dialogue Sustainable Urbanization in South Asia

Promise of Information Technology (IT) and IT-enabled

Services for Improving Urban Governance

Dr. Anupam Khanna

New Delhi, December 18, 2014

New Emerging Centres

23-Dec-14 8

Ahmedabad

Surat

Bhopal

Bhubaneswar

Chandigarh

Indore

Jaipur Lucknow

Madurai

Mangalore

Nagpur

Thiruvananthapuram

Vadodara

Visakhapatnam

Gwalior

Kanpur

Dehradun

Ranchi

Shimla

Srinagar

Goa

Gangtok

Raipur

Guwahati Allahabad

Varanasi

Siliguri

Pondicherry

Nashik

Aurangabad

Mysore

Salem Coimbatore

Kochi Tiruchirapalli

Hubli-Dharwar

Vijayawada

Ludhiana

Durgapur

Patna

Tier-2 Cities

Tier-3 Cities

Advantages offered by Tier–2/3 Cities

Tier–2/3 cities in India

• Availability of Knowledge Pool

• Lower Operating Cost

• Government Support and regulation

• Developing Infrastructure

Source: NASSCOM; SEZ, India; KPMG Analysis; ITP Division, MoEA, Govt. of India

IT–BPM SEZ Unit Growth*

*Formal Approvals

303

532 589

2008 2010 2012

Tier–2/3 cities account for around

30 per cent of all operational IT SEZs

Cities as engines of growth

TALENT POOL

COST COMPETITIVENESS INFRASTRUCTURE BUSINESS

ENVIRONMENT GOVERNMENT POLICIES REAL ESTATE

MOTIVATING FACTOR

MOTIVATING FACTOR MOTIVATING FACTOR HYGIENE FACTOR HYGIENE FACTOR HYGIENE FACTOR

RANK - 1 RANK – 1 RANK - 3 RANK - 4 RANK - 5 RANK - 6

23-Dec-14

TALENT POOL

COST COMPETITIVENESS INFRASTRUCTURE GOVERNMENT POLICIES REAL ESTATE BUSINESS

ENVIRONMENT

MOTIVATING FACTOR

HYEGINE FACTOR HYEGINE FACTOR HYGIENE FACTOR HYGIENE FACTOR HYGIENE FACTOR

RANK - 1 RANK – 2 RANK - 2 RANK - 2 RANK - 3 RANK - 4

Domestic IT-BPM Firms

International IT-BPM Firms

4 23-Dec-14

Technology can transform India’s ability to provide basic services

Basic services Potential technology and services’ solutions

Healthcare 50% of Indians do not have access to primary healthcare –

technology can provide it at half the cost

Financial

services

80% of Indian households are unbanked – technology can

enable access for 200 million families

Education

India faces a 3-fold shortage in teachers – technology can

address this through remote solutions (e.g., virtual

classrooms, recorded lectures by senior faculty, modular

multimedia content)

Public

services

India suffers from a leakage of 40-50% in public food

distribution – technology can ensure transparency

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Public Services and E-Governance Projects

• Elimination of ineffeciencies

• Reduction in redundancies and increase in collaboration among different departments

• Reduction in corruption, improvement in citizen’s experiences

Innovative Products and Services

• Increase in accessibility of essential amenties such as health care and education

• Increase in affordability of products while maintaining quality

• Elimination of structural inefficiencies

Some key eGovernance projects are :

• Online registration of companies

• E-Filing of Income tax returns

• Online application of passports

• Aadhar/UID

Some key technology solutions are:

• E-Learning and knowledge portals

• Telemedicine solutions such as e-Sanjeevani

• Online banking

E-Governance : Harnessing technology to increase access, affordability and accountability for essential services

5 23-Dec-14

6

Delivering government services at citizens’ doorstep

Focus on increasing transparency

Focus on reducing administrative and commercial

losses

• Banking

• Land records

• Healthcare

• Education

• Food and civil supplies

• Employment

• Right to Information

• Complaint registration

• Public grievance redressal

• Taxation

• Audits

• Efficient utilization of resources/grants

• Interoperability/integration

• Electronic transactions

Source: Zinnov Analysis

Focus on better service delivery & increasing transparency is the key demand driver for IT adoption

23-Dec-14

Aadhar - What will it do?

• The Unique Identification : 12 digit number for every individual, including infants.

• Linked to Biometric and Demographic information

• Will enable 'anytime, anywhere, anyhow' authentication.

• Creation of the world’s largest database – 1.2 bn people.

geography

Source: www.uidai.gov.in

Benefits and usage • Empowering poor & underprivileged

residents to access public services including banking, public distribution system, education, healthcare, direct benefit transfers, etc.

• Aadhaar provided migrants mobility of

identity.

The focus resident segments are: Below Poverty Line (BPL) families Marginalized and the deprived Landless labourers Daily wage earners Minorities (by caste, religion, etc.) Migrants Women Children, especially 6-14 age group

7 23-Dec-14

• Transactions normally require verification of identity

• Aadhaar online authentication will provide a common platform which can be used across all transactions and other applications.

• Entitlements should reach the intended beneficiary – non-transferability can be ensured

• This can be effectively done by authentication at the point of service delivery

• Many sectors will be able to use as a proof of presence for the beneficiary

Service Delivery potential due to Authentication

Aadhaar Applications in States

Jharkhand

MG-NREGA,

Scholarships

Andhra Pradesh

PDS

Maharashtra

Social Security Pensions

Karnataka

LPG Subsidy

Sikkim

Employee Salary

Tripura

Old Age Pension

Aadhaar based government application pilots – Country wide spread

Mobile connections Bank A/Cs, Insurance, etc.

State Government Services

Aadhaar accepted as KYC for various services

1 2

4

LPG Connections 3

Train Travel 5

? Many other services…

6

10

Micro-ATM transactions

1. Handheld device and battery powered

2. Online connectivity through mobile network

3. Micro-ATM standards set by RBI and IBA (manufactured by multiple vendors)

4. Biometric scanners are certified

5. Interoperable devices and can work for any bank and any BC

Total online transaction time less than 15 seconds –

Verified on the ground from Tripura, Jharkhand, Maharashtra, and Andhra Pradesh

The impact…

Digital Identity

Local Language Content

Credit Registries

Digital / Online

Payment

Mobile Commerce

Insurance, banking

Govt. Services

Social Networks

Aadhaar identity platform

and Aadhaar enabled

applications can help a billion people

to participate

in digital economy and avail services tailored to

them!

Snapshot of E-Governance Programs in Bihar

NeGP INITIATIVES • BSWAN (Bihar State Wide Area Network) • CSC (CSC -Vasudha Kendra) • e-District • e-Procurement • State Portal (BiharOnline) • SSDG (State Service Delivery Gateway) • SDC (State Data Centre) • CCTNS (Crime & Criminal Tracking Network System)

STATE IT INITIATIVES • BRAIN - DC

(Bihar Revenue Administration Intranet Data Centre)

• SecLAN (Secretariat Local Area Network)

• CTMIS

(Comprehensive Treasury Mgt Information System)

• VATMIS (Value Added Tax Mgt Information System)

• iWDMS (Integrated Work Flow & DMS)

• ICT @ School

• e-Shakti

• BKC (Bihar Knowledge Centre)

• MoP (Modernization of Prison)

• Sec ID (Secretariat Identification)

• Jaankari I (RTI Call Centre) &

• Jaankari II (RTI online)

• BHSWAN (Bihar Horizontal State Wide Area Network)

• High Court Digitization: Digitization and Microfilming of 100 years records of High Court. This involves building up a dedicated data center for HC

• City Surveillance and DIAL 100: Enhancement of city security by placing IP-Based CCTV Camera at sensitive locations. This is to be integrated with modern Control room connected to GPS based police tracking vehicles

• Monitoring of ASHA workers thru M-Governance: Monitoring of ASHA health workers using Mobile Technology.

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Other Initiatives

• E-Awaas: To strengthen the monitoring and evaluation (M&E) of IAY through Global Positioning System (GPS) and Time Stamped Photography enabled program

• eMMGS: The Electronic Muster, Measurement & Gram Sabha System (eMMGS) is a technology solution for achieving complete transparency in MGNREGS

• Modernization of PACS: Using Technology to enhance efficiency of Procurement of food grains by cooperative societies. Farmers would get right amount in their bank accounts and would not have to wait long for getting paid.

• Modernization of PDS: Improving the efficiency and effectiveness of supply chain management in food grain distribution through Fair Price Shop

Other Initiatives

NASSCOM Support for Smart Cities Initiative

• Consultation workshops with MoUD for members in August and September on 100 Smart Cities initiative

• NASSCOM requested to take the lead in defining the IT Roadmap for Smart Cities

• NASSCOM entrusted with responsibility to develop Reference Model on technology architecture framework for Safe City, GIS and ICT

• NASSCOM partnering with distinct knowledge partners

• Involving members of industry and a cross-section of state govts

Case: E-Procurement for Public Works in India and Indonesia Source: Lewis-Faupel, et al (2014) NBER Working Paper

• Construction Quality & Quantity of Infrastructure Often Low • Limited Supply of Competent Contractors

• Collusion in Bidding …and more

• Corruption among Public Officials

• E-Procurement meant to address these, esp Lack of Information

• Improvements Expected • Lower Prices

• Higher Quality

• Timely and Efficient Execution

• Findings (from Reviewing Thousands of Roadworks Contracts) • Price Impact Statistically Insignificant

• Better Construction Quality in India; Reduced Completion Delays in Indonesia

• Implications • Political Economy Challenges