1. I.T for Better Governance & Empowerment of People By Dr T.H.Chowdary * Director, Center for Telecom Management & Studies * Chairman, Pragna Bharati (Intellect India), AP * Former Information Technology Adviser, GOAP Chairman & Managing Director Videsh Sanchar Nigam Ltd., Bombay T: +91 (40) 6667-1191(O)2784-3121(R) F: +91 (40) 6667-1111 (O)‏ Talk @ Andhra Mahila Sabha, Hyd: 10 Oct '09

2. THC_CTMSS425_Oct'092 Why e-governance (1) Government(s) largest handlers of people’s money – (25 to 25)% of GDP & Welfarist Least efficient, economic & transparent –Eg: Projects in progress for 10 to 25 yrs – $ 25 bln unproductively locked up –25 mln homes claimed to have been built for 75 mln people in AP alone! –13 mln. White ration cards for families below poverty line (80 of Pop.)

3. THC_CTMSS425_Oct'093 Rs.229505 cr Rs.314446 cr DIRECT TAX COLLECTION 2009-'10 = 400,000 cr

4. THC_CTMSS425_Oct'094 Sector Budget Allocation in 2003-04 Budget allocation in 2008-09 Agriculture3,26210,075 Education7,02434,400 Health6,98316,534 Rural Development and Land resources 11,32018,972 Road Transport and High Ways 7,23614,066 Sarva Siksha Abhiyan1,95113,100 Midday Meal Scheme1,1758,000 Integrated Child Development Scheme 2,3566,300 Rural Employment Scheme 4,98616,000

5. THC_CTMSS425_Oct'095 Budget allocation 2009-'10 continue..... * Subsidies in 2009-'10 = Rs. 95,579 cr * Total Budgeted Expense = Rs. 9,53,231 cr * Plan Exp. = Rs. 2,85,149 cr * NREG = Rs. 39,000 cr

6. THC_CTMSS425_Oct'096 The Cost of Delay: Rs. 50,000 cr. Total Projects 742 ( 216 hit by cost overrun) RailwaysPower Atomic Energy Urban Developme nt Coal Petroleu m No. of Projects 25662101810030 Projects hit by cost overrun 14992413 Original cost (Rs. crores) 25,1753,527 4,97652924,406 Extent of cost overrun 91.5%87.7% 115.9%52.2%29.6% (Source: Indian Express 31/8/2006)

7. THC_CTMSS425_Oct'097 Why E-Goverannce – “Socialism” at work (2) Subsidies ( $ 6.2 bln. on food, kerosene & sugar and $ 4.5 bln on other items) Apply, Apply – No Reply Government officials: –Labour-lordism; Babu-bossism –Insectification of citizen –Sale of Information –Move from office to office again & again

8. THC_CTMSS425_Oct'098 Why E- Governance (3) Taxes increase; Projects Multiply; so do offices –Poverty Alleviation –Poverty Eradication –Integrated Rural Development –Uplift of Utterly poor (Antyodaya –) –Light to the dark (Velugu) –C.M’s Employment of Youth –Indira Awas ( Housing the poor) –Rajiv Arogya Sri

9. THC_CTMSS425_Oct'099 Why E- Governance- Revenues Rise (4) 52 such programmes in 53 years since 1951. Illiteracy, poverty, large family – vicious circle, 15% of benefit money reaches the poor 25 mln homes claimed to have been built for 75 mln people in AP alone! 100% must be living in Govt Built houses! 13 mln. White ration cards for families below poverty line (80% of Population)

10. THC_CTMSS425_Oct'0910 Why E- Governance- Revenues Rise (5) Garibi Hatao – again after 36 years 2 nd launch of multipoint “Backwardness Eradication” for Minorities. Moslem Fist “Programs 35 Rajiv / Indira XYZ Programs

11. THC_CTMSS425_Oct'0911 Why E- Governance- Revenues Rise (1) Taxes increase; Projects Multiply; so do offices –Poverty Alleviation –Poverty Eradication –Integrated Rural Development –Uplift of Utterly poor (Antyodaya –) –Light to the dark (Velugu) –C.M’s Employment of Youth –Indira Awas ( Housing the poor) –Schemes named after Rajiv Gandhi- 140; Indira Gandhi -32; Jawaharlal Nehru-15 –In A.P, Rajiv Schemes > 40

12. THC_CTMSS425_Oct'0912 Good Governance: Prime Necessity (1) Leadership Vision Conviction Political Will Communication & Evangelism for development Value for taxes collected and votes garnered

13. THC_CTMSS425_Oct'0913 Information & Knowledge Information in power Information is the basis of planning, control, management, efficiency, effectiveness MIS - electronified, stored, updated; accessed; distributed; gathered over telecom network Telecoms, computers, Web-sites, networks

14. THC_CTMSS425_Oct'0914 I.T in Vision 2020 for Andhra Pradesh (then, India) ICTs as engines for development & growth e-education e-Governance e-procurement e-Seva ( service) e-cops Tele-medicine Jobs for the educated e-Consulting e-money transfer e-Income tax filing EMRI E-Counselling I.T in High Courts

15. THC_CTMSS425_Oct'0915 What E-Governance Can Deliver (1) ICT – based MIS eg: Story of Weaker Section Housing Delivery of government services – One stop – Many Services Speed Up Process –Corruption decreases –Dissatisfaction decreases –Time & fuel economy –Reduced Transaction costs

16. THC_CTMSS425_Oct'0916 What E-Governance Can Deliver (2) Responsiveness & Accountability – Dial the Chief Minister, Commissioner (Police, Municipal Corpn), Collector… Economy & Effectiveness –E-Procurement –e- Cops –Better planning ( MPHS; GIS; Data Bank; Oversight, Speedy Correction ) –Video in jails –prisoners not physically brought to courts – escapes prevented

17. THC_CTMSS425_Oct'0917 What E-Governance Can Deliver (3) –Interviews from video- enabled Internet Kiosks # e-ways of SIFY (saving time & money) –In courts – original documents scanned, stored on floppy/ CD; document theft avoided –Land records, titles, encumbrances easily accessed by farmers (BHOOMI in Karnataka) –E-Chaupal (ITC procurement & farmer education; market information); multi-services –Rural Service Delivery Points ( for e-Seva of Andhra Pradesh )

18. THC_CTMSS425_Oct'0918 What E-Governance Can Deliver (4) –Job search by Internet Browsing –Students write Project Reports –Computer Education in High Schools –All teachers to become computer literature –STD/ISD PTs upgrade to Internet Kiosks – e-mail in Indian Languages –Public libraries computerised more titles, subscription to foreign “electronic” form journals

19. THC_CTMSS425_Oct'0919 Major EG Projects in Andhra Pradesh: MPHS.. Building the citizen’s & land data base CARD.. Registration of legal & sale deeds FHIMS..IT in Primary Health Sector FAST.. Transport services through IT Compact..Streamlining commercial taxes e-COPS.. IT in Police SmartGov..Knowledge-led governance (Secretariat) e-Procurement.. eSeva.. Redefining citizen services APOnline..Convergence of info, forms & services Kiosks..Network of internet kiosks in villages OLTP.. Online Transaction Processing Treasury.. Receipts& Payments (there are over 50 other e-governance projects)

20. THC_CTMSS425_Oct'0920 Some Spectacular Outcomes (1)  E-Procurement Award time reduced from 150 to 20 days On 52 e-tenders (Rs. 3.5 bln), 23% saving 1500 e-tenders in progress (Rs. 16.4 bln) in 2003-04 Procurement would cross Rs. 15,000 cr in 2004- 05 0.24% of tender value as commission (reduced to 0.05% in 2005)

21. THC_CTMSS425_Oct'0921 Some Spectacular Outcomes (2)  E-Seva in Andhra Pradesh Multiple services offered at each counter Utility / Tax Payments –Electricity, Water, Property Tax, Telephone bills –Filing Sales Tax and Income Tax Returns Certificates –Birth / death certificates –Encumbrance certificates for property Passport and Licenses –Filing applications for passports –Municipal trade licenses, Learner’s License, Vehicle registration … Bus tickets … train tickets, airline tickets, travel bookings Rail Reservations E-Payments on internet ( www.esevaonline.com)

22. THC_CTMSS425_Oct'0922 Some Spectacular Outcomes (3)  E-Seva in Andhra Pradesh One-stop-Shop for G2C services 31 service centres, 6 bank branches, 81 ATMs (in Hyderabad) Volume of Transactions increasing 0.8 mil in April 2001 8.5 mil since Aug 03; 12 mln, Dec ‘04 46 services across any of 290 counters Extending to all urban areas by Dec 03 232 more eSeva Centres in 116 cities & towns & 2500 villages by March 2004 5000 villages by Dec 2004

23. THC_CTMSS425_Oct'0923 Some Spectacular Outcomes (4)  CARD In-house execution of the Project More than 240 registration offices Old documents scanned and indexed 20 year title search in less than 15 mnts. Certified copies of registration deeds Encumbrance certificates Valuation slips for properties Registration deeds like sale, mortgage, lease& gift

24. THC_CTMSS425_Oct'0924 E-Communication with People Video-conferencing Face to face with Chief Minister Transportable VSATs and Discussion with Village Assemblies

25. THC_CTMSS425_Oct'0925 IT based Elections Registration Canvassing Voting Results

26. THC_CTMSS425_Oct'0926 Infrastructure for e-governance/commerce Broadband electronic/ photonic telecom network Microwave Radio – Terrestrial Satellite Wireless Access: Cellular Mobile System with Internet Access Optical Fiber Cables – underground & undersea Communication devices – cell phones, Laptops, i-phone, PCs

27. THC_CTMSS425_Oct'0927 PCI A X TSP Time (a) Affordability A PCI/ Tele-Service Price - PCI: Per Capita Income - TSP: Telephone Service Price - A: Affordability Bring down price to increase affordability

28. THC_CTMSS425_Oct'0928 Affordability of Telephone 195119942007 Revenue/Line * at current exchange parity $ 125$250$125 Rev. as% of PCI 2.51.00.12 Affordability PCI Tel. Svce.Price

29. THC_CTMSS425_Oct'0929 E-GOVERNANCE STRATEGY (1) Governments on the Band Wagon Almost all (except a few dishonorable exceptions) States and Union Governments are enthused and committed to e-governance. All have launched many and implemented some programs All are Government-centric May falter and flounder like PSU disinvestment and telecom demonopolisation

30. THC_CTMSS425_Oct'0930 E-GOVERNANCE STRATEGY (2) TECHNOLOGY’S ROLE Technologies are Enablers, Promotive of Efficiency, Speed, Effectiveness & Economy Offices/Officials need not be technology-savy but skilled to use To make a difference, move to E-Governance should be swift (>5 Years), not graduated; otherwise old absorbs, assimilates, disfigures the New

31. THC_CTMSS425_Oct'0931 E-GOVERNANCE STRATEGY (3) TECHNOLOGY’S ROLE Information Infrastructure (Electronic) Photonic Highways) is Available; Improving; Extending Thro’ Multiple Enterprises.

32. THC_CTMSS425_Oct'0932 E-GOVERNANCE STRATEGY (4) Implementation A vision and master-mind Best Instrument - Government Department or Society (eg STP) or Mission

33. THC_CTMSS425_Oct'0933 Opposition Carps (1) Does I.T give water, medicine, house –sites World Bank, Multi-nationals want to exploit India MNC’s exploiting Indian “labour” (ignore that there are millions unemployed graduates; I.T professional gets (3 to 10) times a non-IT Engineer) Reduces Employment Benefits only the elite Has not reduced corruption (true but cut delays)

34. THC_CTMSS425_Oct'0934 Opposition Carps (2) English language destroys Indian languages (true; but every such politician sends children to “convent schools” & exports to USA Neglects agriculture; irrigation Power to IT companies; darkness for farmers & poor Tax concessions to I.T companies hurt us No reservations for back-ward and lower castes in jobs

35. THC_CTMSS425_Oct'0935 Peoples’ Perception Derogation of ICTs by opposition parties as elitist &wasteful Hitec, Hitex, IIIT, IBS, Roads,Fly-overs, Corporate Hospitals/ Schools as negligent of rural areas/ people Telephone's Acceptability –Public telephones in villages –Mobile phones PCs & I.T & Internet –Unaffordable, too sophisticated –Not relevant for voter masses

36. THC_CTMSS425_Oct'0936 E-governance & I.T All-Party Agenda Criticised but embraced by “opposition” partis when come to power ( A P; UP; Kerala…) Consultative & involvement in program planning Vision Document: Peoples/ not party’s Get into Manifestos – Professionals to write & “sell” Get parties to go High-tech ( eg: TDP in Andhra Pradesh ) Self-help Groups ( 350,000 in A P) given mobile telephones (Internet-enabled) Talk not jargon; develop popular style Extend reliable power to the entire territory

37. THC_CTMSS425_Oct'0937 ICT-enabled Employment in Rural areas

38. THC_CTMSS425_Oct'0938 Work taken to Villages: GramIT (1) While US, EU, Oceania outsource to Hyderabad, Hyderabad out-sources to villages. Satyam Computers & Byraju Foundation 200 Resident village graduates ( BA, B.Com, B.Sc) trained in Ameringlish; imparted computer & Internet skills Satyam (Hyderabad HQ) outsourced its own internal work (pay-roll, accounting; travel; training; MIS Satisfied,work from abroad moved to villages

39. THC_CTMSS425_Oct'0939 Work taken to Villages: GramIT (2) Broad-band telecom (optical fiber) 512 kbps extended from point of presence (POP) to work- site by PMP wireless Called Gram ITs, these offer transaction processing services ( accounting, bulk mlng; records digitisation, reminder and follow-up and travel support. A whole Gram IT can be dedicated to a customer (like twinning of cities across continents; city com@Gram.IT twinning

40. THC_CTMSS425_Oct'0940 Work taken to Villages: GramIT (3) Gram IT-team contributed part of profits for village development scheme designed by them – Independent and local initiative Rural Pressure group to demand and get quality infrastructure and services such as roads, retailing, education, health

41. THC_CTMSS425_Oct'0941 In Summary E-governance & ICTs – beneficial but pubic acceptability & appreciation to be built up Education for all and skills for many to be evangelised Digital Divide: Reduce by Public Internet Kiosks Haath-heath mein telephone; Gaon-Gaon mein Internet Kiosk

42. THC_CTMSS425_Oct'0942 “Those who claim to lead the masses must resolutely refuse to be led by them, if we want to avoid mob law and desire ordered progress for the country. I believe that mere protestation of one’s opinion and surrender to the mass opinion is not only not enough, but in matters of vital importance leaders must act contrary to the mass of opinions if it does not commend itself to their reason.” -Mahatma Gandhi

43. THC_CTMSS425_Oct'0943 Those who carry on great public schemes must be proof against the most fatiguing delays, the most mortifying disappointments, the most shocking insults. And what is most of all the presumptuous judgment of the ignorant. – Edmund Burke

44. THC_CTMSS425_Oct'0944 We keep on tackling 50-year problem with 5-year plans, staffed by 2-year officials, working with one year appropriations, fondly hoping that somehow the laws of economics will be suspended because we are Indians.

45. THC_CTMSS425_Oct'0945 1. Indian liberalisation encounters formidable opposition from three quarters. a) The top heavy bureaucracy reluctant to shed its enormous powers b) Influential politicians who prefer to let socialism remain the opium of the people and of whom it can be truly said that if ignorance is bliss, they should be the happiest men alive. c) Quite a few Indian businessmen men who are much interested in their own personal prosperity than in the future of the country and who preferred to flourish in the non competitive environment. 2. India continues to remain the only significant country in the free world to hold aloft the tainted and tattered flag of socialism. 3. “ We shut our eyes to the fact that socialism is to social justice, what ritual is to religion and dogma is to truth”.

46. THC_CTMSS425_Oct'0946 THANK YOU: DHANYAWAD (Some more after this If you like)

47. THC_CTMSS425_Oct'0947 Indian Software Industry Exports ( $ mln )

48. THC_CTMSS425_Oct'0948 Employment in Indian IT sector*,’000 (* Years ending March; + Estimate @ break-up: NA) 2.0 m 2.5 m 2008

49. THC_CTMSS425_Oct'0949 Hyderabad’s & A P’s Surge (1) Software companies in Hyderabad 1248 Software companies in rest of A P 30 Exports from HYD: Rs. 18,294 Cr Exports from Visakhapatnam: Rs.245 Cr Exports from Vijayawada: Rs. 42 Cr Exports from Tirupati: Rs. 1 Cr

50. THC_CTMSS425_Oct'0950 Hyderabad’s & A P’s Surge (2) 2008 Exports: Rs.24,000 cr Employees 187,450 (31.3.2007) – 200,000 Dec 2007 –BPO & Call center companies in HYD 410; –Employees 72,000 –Revenue Rs.6,500 cr

51. THC_CTMSS425_Oct'0951 A.P’s Software and ITES Exports Year 2007 2006 2005 2004 1996 Volume (in Rs. Cr. ) 17,000 12,521 8,270 5,025 65 of Exports Visakhapatnam Units 37; Exports Rs. 70cr Vijayawada Units 13; Exports Rs. 24 Cr Number of direct employees 1,60,000 adding 30,000 to 40,000 per year

52. THC_CTMSS425_Oct'0952 2001200220032005200620072008 1.5%1.9%2.82%3.8%5.0%6.5%8% India’s share in software exports in the over all global market

53. THC_CTMSS425_Oct'0953 Share of India in Global BPO & KPO Markets Year 2003-’04 2010-’11 BPO 36% 55% KPO 56% 71%

54. THC_CTMSS425_Oct'0954 Foreign Companies Engaging Indian intellect (1/2) Motorola – 1700 employees 40% of software in its mobiles developed in India The Internet browser and multi-media messaging system conceived and developed for 3G and GSM and engineer The software going into US cars is being developed here in India.

55. THC_CTMSS425_Oct'0955 Foreign Companies Engaging Indian intellect (2/2) GE – Largest R&D center outside USA is in India in Bangalore with 2300 researchers, double that in Shanghai GE put in $ 80 mln in the Bangalore R&D facility GE’s Bangalore R&D field for 260 patents in the USA (37 already approved) Boeing USA is outsourcing Aircraft design to Russia ( $ 120/ Hr) Russians are outsourcing parts of the design to HAL (BG) at $ 30/Hr Gorbachev went to USA to recommend Moscow as Bangalore’s rival! An Indian retained does the work of 2 or 3 Europeans; does not take 6 weeks of holidays & costs one-fourth

56. THC_CTMSS425_Oct'0956 Some foreign companies’ employees in India GE CapsGE DevIBMOracleEDSTexas 16,0001,80010,00060003,500900 Intel JP Morgan HUWAISiemensMotorola 1,7001,2001,50020001,500