Slide 1

Course: e-Governance Project Lifecycle Day 1

Session 4References on e-Gov Project Implementations

Slide 2

Agenda

e-Governance Project Reference in G2B Services

e-Governance Project Reference in G2C Services

Slide 3

G2B Projects:

e-Procurement for efficiency & transparency in Public Procurement

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

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

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

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

Slide 8

The Buy-side

Issue Approach

Complexity of Procurement Procedures

Procurement Reforms

Wide Range of items to be procured -Goods-Works-Services

•Conduct an ABC Analysis

•Select ‘A’ items initially

Organizational Resistance Change Management

Lack of IT Skills among employees Training

Lack of resources with Government Public-Private-Partnership

Slide 9

The Sell-side

Issue Approach

Difficulties in changing over to new systems of tendering

Supplier adoption

Low levels of technological skills •Training•Help Desk

Difficulties in access to site E-Procurement help centres

Resistance to change Change Management

Slide 10

The ‘e-Procurement system’ side

Issue Approach

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

Slide 11

A case Study in e-Procurement - Andhra Pradesh

Objectives of GoAP

Overview of GoAP e-GP System

Project Implementation Calendar

Overview of GoAP e-GP System

Year Milestone

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

e-Procurement Roll-out: Current Status

Overview of GoAP e-GP System

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 CorporationRoll-out• 12 Government Departments• 18 Public sector Units• 68 Municipalities • 4 Universities, 2 Government Aided Agencies

e-Procurement Roll-out: Current Status

Overview of GoAP e-GP System

YearNumber of

TendersValue (Rs

billion)

2003-04 990 6.33

2004-05 3614 127.91

2005-06 7734 63.98

2006-07 16084 271.43

2007-08 22675 386.07

2008-09 26237 317.71

Range of Procurements Handled by the System

Overview of GoAP e-GP System

Impact of e-Procurement Roll-out

Overview of GoAP e-GP System

*Source: GoAP Presentations

Illustrative

Cost Savings - AnalysisOverview of GoAP e-GP System

Year No. of tenders

ECV (Rs. million)

TCV (Rs. million)

% below ECV

Manual2001-02 188 7552.9 7355.7 (-)2.65

2002-03 125 5583.6 5100.7 (-) 8.65

System Based

2003-04 160 11016.9 8842.1 (-) 19.74

2004-05 94 7555.6 6670.9 (-) 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

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) 107 7335.5 5499.3 (-)25

Conventional (2003-04) 53 3681.4 3347.8 (-) 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

GoAP e-GP System Business Model - Ownership

Overview of GoAP e-GP System

Benefits from e-Procurement

Introduction to e-Government Procurement

S No. ParameterPaper based

SystemE-procurement

1 Procurement Cycle time Months Weeks

2 Procurement Cost HighBetter value for money

3 Transaction Cost High Low

4 Competition Limited High

5 Demand aggregation Ministry level Country level

6 Spend Visibility Low High, Real time

7 Process Visibility Low, Restricted Online

8 Access to Information LimitedFaster, Cheaper & Accurate

9 Auditability Low High

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

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 

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

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

MCA21 eServices Status

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

Snapshot of MCA21 implementation (2/3)

Source: MCA21 Process Handbook, Ministry of Company Affairs

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

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 

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?

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

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

G2C Projects:

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

• 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

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

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

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

Ambience : Traditional Vs eSeva

Conventional e-Seva Centers

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.

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

eSeva Coordination - CSF

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

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

Bhoomi Project - Karnataka

• Bhoomi (meaning land) is the project of on-line delivery and management of landrecords 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.

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

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

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