Course: e-Governance Project Lifecycle Day 1

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

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

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

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. 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. 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. 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. The Buy-side

9. The Sell-side

10. The ‘e-Procurement system’ side

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

12. Overview of GoAP e-GP System Objectives of GoAP

13. Overview of GoAP e-GP System Project Implementation Calendar

14. Overview of GoAP e-GP System e-Procurement Roll-out: Current Status • 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. Overview of GoAP e-GP System e-Procurement Roll-out: Current Status

16. Overview of GoAP e-GP System Range of Procurements Handled by the System

17. Overview of GoAP e-GP System Impact of e-Procurement Roll-out Illustrative *Source: GoAP Presentations

18. Overview of GoAP e-GP System Cost Savings - Analysis 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. Overview of GoAP e-GP System Comparison between Conventional and e-GP systems Comparison between the two systems for the same year

20. Overview of GoAP e-GP System GoAP e-GP System Business Model - Ownership

21. Introduction to e-Government Procurement Benefits from e-Procurement

22. 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

23. 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 

24. 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

25. MCA21 Benefits • 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 • After MCA21 rollout • Online registration and incorporation of companies • Simplified and easy mode of filing of e-forms / returns • Online registration and verification of changes • Centralized Data repository and online inspection of documents by public

26. MCA21 eServices Status

27. Snapshot of MCA21 implementation (1/3) • 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 Front Office Facilitation centres e-Filing • Automation of processing at RoC offices • Centralised Repository of Company Information Back Office • Processing of filings and Internal functions of MCA computerized • Old records at each RoC digitized and made available online

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

29. 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

30. 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 

31. Why do we need legal amendments? Does the electronic records have the same validity as the paper records The following questions arise… 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?

32. 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

33. 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

34. G2C Projects:

35. 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

36. eSeva - Government of Andhra Pradesh • 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

37. 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

38. 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

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

40. Ambience : Traditional Vs eSeva Conventional e-Seva Centers

41. eSeva: Compared to Conventional System • 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. 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.

42. 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

43. eSeva Coordination - CSF

44. 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

45. 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

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.

47. Bhoomi Project - Karnataka • 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).

48. 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

49. 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.