Version 2.

0 of E-Governance in Karnataka: A case of Sustainable Rural CSC: A PPP Pilot Project

Gopal Naik and K P Basavaraj Center for Public Policy

Version 1:Nemmadi, one-stop shop.

Objective: create efficient and smart virtual offices of state government To enhance the accountability, transparency and responsiveness of the government to citizens needs by providing around 42 services The service was launched in 800 centers in the year 2007 through PPP model The Backdrop to conduct to Research Study: The initiative was accepted very well by Citizen and Government in the beginning After the commercial launch from one year many problem start coming and was discussed in media as well in state assembly.... The problems areService level problem at Nemmadi due to Power, Connectivity and technical problem at SDC and sometimes at Nemmadi

IIM-B study on Version 1 of E-governance : Public Value Creation through Private Partnership: Lessons from Public Service Delivery in Karnataka, India Conceptual Framework, Methodology and Data Collection We used Diffusion of Innovation theory framework developed by Rogers, the attributes are: Relative advantage - degree to which an innovation is subjectively perceived as better Compatibility - degree to which an innovation is perceived as being consistent with the existing values, past experiences, and needs of potential adopters Simplicity and ease of use - degree to which an innovation is perceived as easy to understand and use; Trialability - degree to which an innovation may be experimented with, with lesser uncertainty Observable results - easily observable results of an innovation enhance adoption

Public Private Partnership- a Value Model

Partners Investments Organization Beneficiary Outcomes
G2C & B2C quality services at door step

Space and Others Governm ent Connectivity Ne mm adi

Citizens

IT Investment

Govt. agencies

Reduced investments and manpower, focus on core functions, increased revenues

SW/HW Private Partner Personnel Society Private partner

Profit, New Business opportunities

Overall developme nt

To test the model, we have adopted the following methodology: Focus group discussions with Government, Private partner and Citizen Collected Secondary Data from Government and Private partner Structured questioner for citizen- study conducted in two district, covering four Nemmadi Centers with 300 respondents from 5 villages6 page questioner around 20 main sections with many sub section questions on various issues Also we have looked into Power, Connectivity and SDC down-time issues

Time-efficiency gains in the post-Nemmadi scenario

Items RTC Category Immediate Within 15 minutes 15-30 minutes 30-60 minutes More than a day Not Availed Within 3 days 4 to 7 days 8-11days More than 11 days Not availed Within 3 days 4 to 7 days 8-11days More than 11 days Not Availed Within 15 minutes 15-30 minutes 30-60 minutes Half day Ramanagara (n=149) Post PreNemmadi Nemmadi 44.30* 13.42 20.13* 3.36* 0.00* 0.00 32.21 0.00 2.01* 16.78* 0.00 81.21 0.00* 10.74* 54.36* 1.34 33.56 0.00 0.00 0.00 1.34 11.41 11.41 21.48 0.00 32.89 0.67 12.75 4.03 1.31 81.21 12.75 40.27 9.40 4.03 33.56 0.00 24.83 34.23 3.36 Chamarajanagara (n=151) Post PreNemmadi Nemmadi 50.99* 21.85 1.99 1.99 1.32 0.00 43.71 0.00 0.66* 5.30 9.27 84.77 3.31* 5.30* 28.48* 24.50* 38.41 0.00* 0.00* 0.00* 0.66 4.64 4.64 25.17 5.96 43.71 0.00 6.62 1.32 7.28 84.77 15.23 33.77 1.99 7.28 41.72 18.54 27.15 33.77 3.31

Land Holding Certificate

Income and caste certificate

Pay utility bills

Reliability in service delivery in the post-Nemmadi scenario

Reliability Factors Category Ramanagara (n=149) Post Nemmadi Service problem No Yes Errors in documents No Yes Speed of service delivery process Very Fast Fast Moderate Slow 53.69* 46.31* 95.30* 4.70* 82.55* 12.75* 4.70* 0.00 Pre-Nemmadi Chamarajanagara (n=151) Post Nemmadi 11.92* 88.08* 97.35* 2.65* 11.92* 61.59 6.62 5.30 Pre-Nemmadi

5.37 94.63 41.61 58.39 5.37 81.88 12.75 0.00

0.66 99.34 48.34 51.66 3.97 70.86 11.26 1.99

Very Slow Payment of hidden charges Yes

0.00

0.00

14.57

11.26

0*

100

0*

100

Level of citizens satisfaction of various attributes of services at Nemmadi centers (% of respondents)

Attributes Ramanagara (n=149)
Very satisfied Satisfied Not Satisfied Very satisfied

Chamarajanagara (n=151)
Satisfied Not Satisfied No change

Delivery Process and Quality of service Speed of the service Responsiveness and empathy of staff Staff efficiency in handling problems Accuracy in billing and quality of the stationery used Record maintenance accuracy Ambience and facilities

77.18 75.17 53.69 40.94

22.82 23.49 43.62 55.7

0.00 1.34 2.68 3.36

29.8 19.21 15.89 58.28

39.07 45.7 46.36 29.14

21.19 24.5 33.11 12.58

9.93 10.6 4.64 0.00

38.26

60.4

1.34

25.83

59.6

14.57

0.00

38.93 32.21

57.72 60.4

3.36 7.38

28.48 18.54

54.97 59.6

16.56 21.85

0.00 0.00

Programme Acceptance Matrix

Programme Design Rank Good Not so good

Community Preparedness

High Low

Details of revenues and expenses at the Nemmadi Back office and kiosks (Rs.per month)

Expenses Back office Nemmadi Center 43,262 12,535

Revenue 27,411 2,994

GAP -15,851 -9,541

RFP Compliances by GoK

ITEM ISSUE IMPACT

Old Year RTC (2.2.1.3)

2 year delay in implementation

Revenue loss

Signature less RTC (2.2.5)

Awaiting implementation since rollout of Nemmadi

Revenue loss

RFP Compliances by GoK

ITEM ISSUE IMPACT

SSA (2.5.1)

No timelines provided for full rollout

Revenue loss to Nemmadi

ESCOM (2.4)

Awaiting implementation since rollout of Nemmadi

Revenue loss to Nemmadi

RFP Compliances by GoK

ITEM ISSUE IMPACT

Collection of Panchayat Taxes (2.5.4)

No timelines provided for full rollout

Revenue loss to Nemmadi

Data Entry of Other Govt Depts (2.5.5)

Only revenue department services have been allowed to be integrated with Nemmadi

Revenue loss to Nemmadi

Reasons for Non-Profit Centers ( based on TOE analysis) Sl.N o Area Nature of Problem Responsible Partner PPP 1 2 3 4 5 6 7 Technical Technical Technical Technical Power Communication (KSWAN) SDC-SW/H/W/Down-Time Down-Time at Nemmadi Private Govt.? Govt. Private Govt/Pvt Private Private under

Organizational RFP NoncomplianceOrganizational Manpower (quality) Organizational Supply-chain/down-time management

Environment

Regulatory environment (service Private tax etc)

Version 2 of E-governance: CSCs at GP Level A case of CSCs at 15 GPs in Gubbi Taluk, a action research study by IIM-B

Using New Public Service Management (NPSM) Tool- Market-Type Mechanism: Contracting out & Charging Services. Information Theory

Role of Information: Citizen

Access Adequate Timely Accurate Cost effective Reliable User Friendly Better livelihood opportunities

Information

Reduces risk

Enriching living condition

Citizen Expectations/Demand side perspective

Education - Computer training, English, Math, science coaching, Remedial teaching/Tuitions, Information on Universities & colleges, CET/CAT Training and Exams, Publish Results, Online applications, and Registration, competitive examination. Health - Tele Medicine, access to homeopathic, ayurvedic, unani medicine, Information on Facilities & Service available, Providing referrals, Access to hospitals, Preventive care, food safety, etc., Agriculture - Information on various aspects of crop production, harvest and post harvest technology and markets. Employment: information, application, vocational training, finishing school Banking/Livelihood/ Finance - Employment, Loans, Microfinance, Vocational trainings, Insurance, banking operations , Issue of Employment certificate, etc. Social/Cultural: Music, sports, entertainment, travel G2C :RTC and Rural Digital Service B2C : Utility Payments, Mobile recharges, new connections, Ticketing (Railway, Bus, Air etc., .

Role of Information: Government

Better Planning of Government Services/schemes

Information

Adequate Timely Accurate Cost effective Reliable User Friendly

Effective Delivery

Easy Monitoring and Evaluation

Flow of Information at Various Levels of the Government

Departments STATE
1 2 3 4 5 1 2 3 4 5 Revenue Rural Development Health Education Agriculture

DISTRICT

TALUKA

GRAM PANCHAYAT

RURAL CITIZEN

Changes in the Flow of Information Service at Various Levels of the Government

Departments STATE
1 2 3 4 5 1 2 3 4 5 Revenue Rural Development Health Education Agriculture

DISTRICT
1 2 3 4 5

TALUKA

BUSINESS

GRAM PANCHAYAT

CSC

RURAL CITIZEN

Implications
Addresses the last mile problem
Citizen level services strengthened Citizen level information access strengthened

More information at Taluka, District and state level Timely information Accuracy of information Monitoring and Evaluation is easier

Government: Need of Real Time Information

Government Need is to collect, collate and dissemination and deliver
NREGP: Panchayat secretary spends 6 hrs a day in maintaining records, He maintains 60 record books on a daily basis. Enormous redundancies.

Anganwadi: Anganwadi worker has to collect information on health & Nutrition's needs of mother and child, spends considerable amount of time in collection, collation and transfer Crop Updation : Done by village accountants, has been a major source of problem with respect to timeliness and accuracy Public Distribution System: Real time data regarding the allotment and disbursement can be availed by the Kiosks Survey or data collection can be taken by the Kiosks

Problems with existing CSCs

Limited number of services provided: Mostly B2C or G2C services Difficulty in providing G2C services : Lack of back-end support and proper data base, problems with the existing data bases Lack of integration of services
Many private initiatives are single service oriented

Service provided are very basic Technology problems: Proper solutions Infrastructure problems: Space, connectivity and power Manpower problem: Availability of quality personnel Locally relevant content

How this will be addressed in the new design? Design Principles

Provide a cluster of services: provide G2C, G2G and B2C services Provide integrated services: Provide various related services such as crop production and marketing together Provide complete services: Have backend network to provide complete services

Clustering of Services
G2C Services

Integration of services
Harvest & Transport of Produce Facilitation

Health

Emplo yment

Market Information and Linkages

Risk and Insurance: Production Risk Price Risk

Educati on

Kio sk

Agricul ture

Storage informatio n and facilitation

FARMER

Credit Facilitation

Religion, Culture, Entertain ment

Grievanc e & Legal issues

Knowledge and Agri Consultation Soiling Testing Water Testing Irrigation Facilitation

Inputs on: Seeds Fertilizers Pesticides Farming Machineries

G2B Services

Completeness of information: level of service

L1: Select and provide L2: Search and provide L3: Connect and Provide L4: Organize and provide L5: Network and provide

Health Banking and financial Services

Citizen

Education

G2C & G2B

L1 L2 L3 L4 L5

Religion, culture & entertainment, sports

Agriculture

Grievance B2C & Legal issues

Level of Services
Level L1 L2 L3 L4 L5 Select & Provide Information on agri inputs ( seed, fertilizers) Information on Loan Search & Provide Information on cultivation practices. Connect and provide Information, On market Organize and Provide Organize a videocon on a pest problem Net work and provide Marketing of crops.

Service Agriculture

Bank Facilitator/ Bank correspondent

Information on various loans and Banks from where the loan can be availed.

Information, access to loan application, filling up of loan application. Connect to the bank

Collect the loan application, forward it to Bank and process it.

Disbursement of Loan, collection of EMI, Opening of bank account, Advice on Insurance, Facilitation for Repayment of the loan,

Services
Agricultural services Agricultural information and consulting Crop updation Educational Services Primary school educational services High school educational services Community developmental education services Telemedicine Primary health care consulting from a renowned doctor. Secondary advice from experts at district/higher level B2C and B2B Services Rail, air and bus tickets Mobile recharges and new connections DTH recharges and sale Marketing intelligence and space advertisement.

Agri-consulting
Planning & Preparation Financial Linkages. Seeds, Fertilizers & other inputs linkages Identification markets. Crop Selection & Management Training, Pre-Harvesting Advice and Monitoring Post Harvesting Support Market Linkages. Value-addition & Income Generation Programmes.

Educational services
Interactive CDs and videos. Online sessions from accomplished and expert teachers. Connectivity to be provided to school level by using WAN/Long distance Wi-FI connectivity for the schools. Two way interactions between students and expert teachers.

Benefits
Government citizen Business

Government:
Able to reach information to citizen: about employment, crop production, markets, government schemes, advisory (health, food safety) Provide various services: Land records, certificates, etc Organize data on government services at GP level and transfer
Helps in reducing burden on government employees Reduces need to have IT trained people at the local office

 Quick transfer of data access to data at taluka, district and state level instantaneously Helps in monitoring and evaluation of projects and programmes Helps in better and timely planning due to easy availability of data Timely execution of projects and programmes Easy availability of information at all levels and agencies for example availability of information at Planning Board and CMs office

 Integration of various data at various level Reduces redundancies in data collection, database management and saves costs

Overall improvement in the government delivery of services in the rural areas.

Citizen
Better service delivery Easier access to information Clarity in information Reduction in the cost of information Reliability of the information will be high Integrated services will reduce uncertainty and therefore willing to adopt technology, and newer services

 Better delivery of welfare schemes Improvement in production and profitability from enterprises Enrichment of rural life through entertaining avenues

Market Creation for Goods and Services S1

S2 S3 P1 P2 D3

D2 D1 Q1 Q2

Markets for insurance Markets for commodities Market for educational services Market for microfinance

Business
Can provide various B2C services such as
Labour exchange and employment services Microfinance Insurance Tution and educational services Health services telemedicine Travel, telecom services Market and production information

Improvement in revenue model Scale up of CSCs will expand business

What is suggested?
A pilot CSC to test whether the benefits listed can be achieved. The proposed pilot consist of setting up of CSC in 15 GPs of one taluka and simultaneously conduct action research to provide feedback on an ongoing basis to continuously improve the design so that appropriate design for rural CSC is developed. This will also help in assessing the financial sustainability of the CSC which will aid in determining scaling up challenges. The pilot will run for a period of 6 months.

Who conducts the Pilot?

A consortium consisting of Karnataka Government, CPP, BSNL, a Bank and various business enterprises interested in rural CSC. The business will provide equipment, existing as well as required solutions, manpower including managerial support. The business will organize to provide B2C services. CPP will do the action research and provide feedback on a continuous basis to improve the design as well as method of resolving problems, and monitoring and evaluation of the pilot

 The Karnataka government will be the major partner providing leadership, infrastructure such as space related facilities, connectivity (BSNL), power, involvement of various departments, facilitation through process changes, effectively addressing any problems related to government services.

Government as a major partner: G2G Services

All relevant departments revenue, rural development, agriculture, horticulture, animal husbandry, education, health and family welfare, planning and food and civil supplies participate These departments make use of the CSCs for delivering service and collecting data Payment to CSC will be based on the extent of service provided Process simplifications required for efficient working of CSC need to be addressed

 Creation of data bases for efficient delivery of services Improvement in accessibility of data bases Implementation of operational systems such as FIFO Timely payment of government dues Provide adequate space in Panchayats and making Panchayat office as nodal office Provide adequate internet bandwidth

Ensure proper power supply

 Technology solutions hardware and software Power saving and generation devices atom computers and solar panel Networking and backend support

Challenges in making Pilot Successful

Involvement of Government single critical factor, extent of involvement will determine the success. Connectivity and Power Process changes studies and solutions Technology and software Manpower Cooperation of local offices, leaders and citizen Effective working of consortium

Out Comes of the Action Research

Progress-RTC\RDS, RDPR ,Tele-education and B2C

Monthly Average Expenses and Revenue for Pilot CSCs in Karnataka Average Monthly Expenses per CSC (INR) Equipment (laptop, printer, webcam, biometric and UPS)a Power Connectivity (Standard schemes of BSNLb) Spacec Salaryd Supervisory and related expenses Training of personnel (amortized) Stationary Total
aEMI

Monthly Revenue per CSC (INR) RTC (G2C)e RDS(G2C)e Panchayat Admin (G2G)f NREGA(G2G)f Oxigen (B2C)g Tele-Education (G2C)h 860 790 5000 5000 500 3200

3050 200 1100 500 6000 3750 120 600 15320

15350

calculated for a lifespan of 18 months and 12% interest rate on total cost of Rs. 50,000. bBSNL is a public sector telecom company having extensive network in rural areas.

Few indicators of success:

Total GPs Covered-15 Total Household Covered-24750 Total Population Covered- 106688 Total Agriculture Labour Families Coverd-9302 Total Services Delivered- (G2G*, G2C**) Weather data collection for 7 parameters on hourly basis PoC is completed and full-scale product is ready to use (Crop data model, asset mapping model for- RDPR, NREGA and many other use) Ongoing PoC- Seed & Fertilizer inventory model, connecting panchayth administration package to last-mile, MCTS...etc...

Transaction Data of 15 Pragathi Centers

Total RDS

Total RTC

Nos 903 1088 2071 1744 2087

Amt. 13517 16320 31049 26160 31295

Nos 4747 2430 2732 3745 2781

Amt 47470 24300 27320 37450 27810

7893

118341

16435

164350

Total Revenue Generated- Rs. 282691

Progress- Tele-education

Sl No Gram Panchayat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Peedanahalli M N Kote Allilughatta Thyagatur Bidire Marashetty Halli

School Name Govt High School, K Mattighatta Sri Sharada High School,M N Kote. Govt High School, Alliughatta Govt High School, Thyagatur. Shri Kalidasa High School,Bidare.

No Students 111 132 145 107 207 159

Shri Shankareshwara High School, Attikatte Koppa Kallur Doddagunni Hoskere Mavinahalli Chellur Kanakuppa Kunnala Shree Gnanaganga Rural High School. Sri Siddaganga High School,Kalluru. Sri Mallikarjuna Rura High School,Doddaguni. Sri Basaveshwara High School,Hosakere S P V High School,Mavinahalli. Govt.High School,Cheluru. Govt High School, Kanakuppa. Govt High School, K G Temple. Total 66 301 132 205 326 190 201 407 2689

PoC : Technology and Process are Tested and waiting for GoK approval to Implement
NREGA: Project Monitoringwork measurement, Place & Time Stamp through geo-spatial information using the concept Spatial Decision Support System (VSDSS) Crop Estimation: Area & Crop with Place & Time Stamp through geo-spatial information using the concept Spatial Decision Support System (VSDSS) Village Asset Mapping (Roads, House, Education and Household etc.)- Using geo-spatial information for Maping Agriculture: Seed and Fertilizer Inventory Management, Training & Extension Services, weather advisor services using Davangere KVK Health: Telemedicine, MCTS automation for health adminstartion

Village Spatial Decision Support System (VSDSS)for Administrators of Karnataka Govt.

Layer1
Land holding ,Crop area, Household data, water & Sanitation, Health & Educational Institutions and many other assets & Data

Requirements Technology 1 (HW or SW) Base Map/Earth from GOOGLE (image of 2.5 mtr to 0.5 mtr ) Technology 2 (HW or SW) Data Standards, Data Structure for Layer 1& 2 Technology 3 (HW or SW) Periodical Interval Remote Sensing Images for Layer 3 by NRRS/KSRSUC ? Data

Layer2

Geo-physical and Village Resources data

Periodical data collection by GoK/CSC

Layer3

Reality

User Depts.: RDPR NREGA HEALTH EDUCATION AGRICULTURE OTHERS GIS Map of Village

Crop Updation

NREGS Works
-Geo-stamp -Time-stamp

Nallur Village Infrastructure/ Assets

Illustration of Crop Advisory Provided Based on Forecast of Weather Conditions (weather advisor services using Davangere KVK) Observed weather condition at Nallur Hatti village Forecasting of disease or pest or physiological changes Symptoms of observation Control measures

1) Mild cloudy weather 2) Low temperature prevailing throughout the week.

1) Flowering and fruit set decreases when light intensity and duration of sunshine hours are less 2) Possibility of powdery mildew incidence

White powdery patches on the leaf petioles and panicles

Spraying of wettable sulphur3g/L or hexacanazole 1.0 ml/L can prevent the occurrence of powdery mildew disease in mango

S.No. 1 2 3
Date Time

Date&Time 4/15/2011 0:00 4/15/2011 1:00 4/15/2011 2:00

Wind Directi Local Temperature MSLP( miliba Humidity( Rainfall( mm Wind Speed( on( from no Pressure( mil ( C ) r) ) ) kmph ) rth ) ibar ) 22.11 21.84 20.45
Description Widely scattered tstorms. Passing clouds. Mild. Passing clouds. Mild. Temp (C) Humidity (%)

1008.38 1008.5 1008.46

74.4 73.61 75.84

0 0 0

0 1.18 0

264.1 64.4 77.6

Sky Cover

918.44 918.47 918.03

Wind Speed Wind Direction (m/s)

Dew Point (C) Rainfall (mm.) Rain Chance

0:00 4/17/2011 1:00 4/17/2011

25.16 24.61

57 59

16.2 16.15*

0.02

44Passing clouds 38Passing clouds

4.86S 4.61S

Appendix : Potential Services of various Departments, Present Status of Technology, Readiness and Estimated Revenue per CSC.
Estimate d revenue/ CSC (Rs./mon th) Pricing is to be decided

Areas Education Admission and progress report registers digitization (Class 1 to 10)

Role of CSC

Readines s in Pilot Present Centres Status

Data digitization and build central depositary

HW/SWa is ready

Sarva Siksha Data collection from Abhiyan & mid- the source and sink it day meal data into central server Facilitate school and service provider by providing necessary technology and Interactive class manpower

HW/SW is ready

Waiting for order from Dept (state govt) Waiting for 900 order from 2000 Dept (central govt) 3200

HW/SW is ready

Approved by local govt

Areas
Health Tele-Medicine (state & central funding through Insurance) HMIS MCTS Integrated Child Development Scheme (relevant under education, health and SW) Agriculture (state & central) Agriculture inputs inventory building & distribution Scheme management (application process and end-end service delivery) Extension, training and advisory

Role of CSC
Facilitate PHC and service provider by providing necessary technology and manpower Data collection from the source and sink it into Central Server Data collection from the source and sink it into Central Server

Readiness in Pilot Centres Present Status

Estimated revenue/C SC (Rs./mont h)

HW/SW is ready HW/SW yet finalize HW/SW is ready

Under trial (state govt) Pricing to be Order given by Dept (central govt) decided Pricing to be Order given by Dept (central govt) decided Waiting for order from Dept (central govt) Pricing is to be decided

Data collection from the source and sink it into central server

HW/SW is ready

13000

Data collection from the source and sink it into central server Facilitate agri and allied dept by providing necessary front-office support using CSC Facilitate farmer and service provider by providing necessary technology and manpower

HW/SW is ready

Order given by Dept

HW/SW yet to Order given by be finalized Dept HW/SW is ready Order given by Dept

Areas

Role of CSC

Readiness in Pilot Centres Present Status

Estimated revenue/C SC (Rs./mont h)

Revenue Dept RTCb/RDSc

Facilitate front office services for RTC/RDS

1650 HW/SW is ready Working Waiting for order from Dept (state govt) 16500 Some modules already working

Crop data collection RDPRd: GP schemes, admin & NREGS data entry

Data collection from the source and sink it into central server

HW/SW is ready

BPO

HW/SW is ready