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Role of IT in government innovation


Out of every one rupee spent by the Government, 85 paise leak out and just 15 paise reach the ground. (Rajiv Gandhi)

The contradiction in India is that the country is rightly recognised a global leader in the delivery of IT services, but it suffers from very little internal IT development in the country. Technology leads - in the private sector, by companies, corporations and non-governmental groups. Where it is the weakest and where it can have the greatest impact - is in the government sector.

Per Capita public sector IT spending (in USD)

200 180 160 140 120 100 80 60 40 20 0 New Zealand Australia Singapore Hong Kong Korea Taiwan Malaysia Thailand China India

Source : tcs_government_idealegovernanceindia.pdf

Story So far
Commodity-based approach: counterproductive ,more expensive in the long-run. We are now witnessing a shift from the commodity based IT approach to a mature solution/services based approach. The central and state governments has started procuring IT services rather than procuring hardware, software and services. The solutions are delivered in PPP model. Public Private Partnership models for managed services enables government to concentrate on core-mission critical value-adding activities while moving the technology-related requirements to Private Partners.

Performance Indicators
The Economist Intelligence Units annual e-readiness ranks India at 54 out of the Worlds 69 largest economies along with the Philippines. The NASSCOM report on Information Technology on the Economy of India highlights that, despite India's global IT dominance, internally, the country has a low level of IT investment - only 3.5 per cent of total capital and minimal dispersal of IT capital of 30 countries evaluated. The World Economic Forum (WEF) Global Information Technology Report ranks India at 44 (out of a total of 122 countries). The WEFs Global Competitiveness Report also ranks India at 45 out of a total of 122 countries. The World Banks Doing Business report data positions India at 120 (out of 178 economies) in the overall Ease of Doing Business" ranking.

Government Business models

Government applications for IT innovations can be broadly classified into following 3 categories
G2C (Government to Citizen) Example: Bhoomi, Drishtee etc. G2B (Government to Business) Example: eProcurement G2G (Government to Government) Example: Khajane

Projects Undertaken by Government of India

Project Akshaya UIDAI (Unique Identification Authority of India) Bhoomi Drishtee CRIS Passport, Immigration & Visa MCA21 e-seva Banking , insurance , income tax Khajane

Bhoomi Project
Bhoomi project is an attempt made by Karnataka State Government for Computerisation of Land Records. Under the Bhoomi E-Governance project all 20 million land records of 6.7 million land owners in 176 taluks of Karnataka have been computerised. This system works with the software called "BHOOMI" designed fully in-house by National Informatics Centre, Bangalore.

Benefits of Bhoomi
Farmers can quickly get their land records from Kiosks and are protected from harassment and extortion. Reduction in processing time for mutation. Online tracking of mutation status. Easy access to Farm Credit. Ease in case of legal matters.

Ease of maintenance and updation of land records documents. Quick and easy access to Land records. Quick and easy access to Land records for analysis purpose. Ease of monitoring Government Lands.

For Financial Institutions, Online Farm credit related activities. Information availability for Private Sector. Source: ories_bhoomi.html

Drishtee started in the year 2000 in Dhar(Madhya Pradesh) earlier by the name Gyandoot. Drishtees mission is to facilitate the creation of a rural networking infrastructure . Through a network of village kiosks , Drishtee and its local entrepreneurs deliver ICT services to rural sector . As ICT centre is owned and operated by a local villager , the model supports wealth creation by developing entrepreneurs within the village community .

Drishtee business Model

Source: Drishtee_Brochure.pdf

Computerization of treasuries in Karnataka Delivering three key services: processing of bills presented by Drawing and Disbursing Officers (DDO) processing of pension bills payments to vendors and contractors. In the last three years there has been a steady increase in the volume of transactions. In 2003-04, 3.27 million bills were processed at the treasuries for processing whereas in 2005-06, 3.53 million bills were processed thereby representing an annual growth of 3.86%. The growth in the DDO bills was 3.63% For the pension bills it was 5%.

Khajane Model


Khajane (Cont.)
There has been a considerable reduction in the cases of errors in the bills presented at the treasury. In 2003-04, 6410 cases of error corrections were reported while in 2005-06, 922 cases were reported representing a reduction of 62.07%.

There has also been an increase in the detection of cases of excess payments of family pension. In the year 2002-03, 581 cases of excess payments were reported. In the year 2003-04, 701 cases of excess payments were reported representing an increase of 20%.
There has been a significant decline in the waiting time for availing the services at the computerized treasury. For the DDOs the waiting time has reduced from 63 minutes in the manual system to 22 minutes for the computerized system. For the payees the waiting time has reduced from 60 minutes in the manual system to 25 minutes in the computerized system.

UIDAI is an agency of the Govt. of India responsible for implementing UID card of India. The plan is for each Indian citizen to have a unique identification number with associated identifying biometric data and photographs by 2011. Help address the rigged state elections, widespread embezzlement that affects subsidies and poverty alleviation programs such as NREGA . Addressing illegal immigration into India and terrorist threats is another goal of the program. The UID will link a person's Passport Number, Driving License, PAN card, Bank Accounts, Address, Voter ID etc and all this information will be checked through a database.



UID project is known as AADHAAR meaning 'support', and its logo is a yellow sun with a fingerprint embedded in its centre. One estimate of the cost to completely roll-out National IDs to all Indian residents above the age of 18 has been placed at 150,000 crore. UID has received a huge boost with Dr Pranab Mukherjee allocating Rs 1900 crore to the Unique Identification Authority of India (UIDAI) for 2010-11. MindTree outbidded other software companies in getting one of the component of project which involved developing an application, which will capture and manage data from different sources including biometric details.

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