1. Information and Communication Technology Based Rural Business Project Subodh Kumar Gupta December 1, 2001

2. 2 Outline Objective STEMS not Branches Services by STEMS How would it work? User Segments Business Model Schedule Budget Benefits

3. 3 Objective To develop models for Information and Communication Technology based service enterprises in rural areas e.g. PCO-ATMs

4. 4 STEMS not Branches! In the old days, (even now) banks and companies did business through Branches. Now, we propose to do it through STEMS - Synergetic Terminals offering Electronic Multiple Services

5. 5 Services by STEMS Collection of electricity bills, revenue, etc. Application, disbursement and repayment of loans Deposit and withdrawal of savings Insurance Services Agricultural information – clinic, weather, prices Land records, other documents All these are already being done by projects like AP e-Seva, BASIX-POT, NFCL iKisan.com, ITC Soya Choupal and MP Gyandoot. Our proposal is to integrate these at the village retail level with a business model.

6. 6 How Would It Work? Market and Technical Information Companies such as ITC and Dhanuka will own and operate – Market and Technical Information Servers (MaTIS) Financial Services Companies like ICICI and BASIX will own and operate – Financial Services Servers (FINeSS) STEMS will act as retail outlets for both – market + technical information and – financial services transactions

7. 7 STEMS MaTIS Registration Relevant Information Uploading local data Downloading As needed Response STEMS Response Request for Information STEMS

8. 8 Customer Registration E-Passbook Request Response Financial Transaction Updated e-passbook Printed Receipt E-receipt STEMS FINeSS, STEMS

9. 9 User Segments Farmers Traders Micro-entrepreneurs Service would be designed to ensure access to Small and Marginal Farmers Small and petty traders Women Illiterate people

10. 10 Business Model Village level services by micro-e-ntrepreneurs Backbone provided by specialist agencies – Micro-finance institutions (e.g. BASIX) – Agri-business companies/associations (e.g. SOPA) – Government agencies (e.g. Agri extension dept) – NGOs (e.g. PRADAN) MaTIS and FINeSS owned and managed by specialist agencies on profit sharing basis. STEMS operated by the micro-e-ntrepreneurs on revenue sharing model

11. 11 Schedule 3 months to Study and Consultation with potential MaTIS and FINeSS owner/operating companies/agencies 3 months prototype testing in lab condition 3 months field trial of the model 1 months for fine tuning & review 2 months for roll-out in the field

12. 12 Budget in Rs Lakhs 1.Study and Consultations 5 2.Prototype Development 10 3.Field Trial10 4.Fine Tuning & Roll out 5 5.Total30 (Plus an office to operate in Bhopal and fellowship to the proposer)

13. 13 Benefits The assignment will produce scalable models for ICT based service micro-enterprises. If replicated, These will facilitate the transactions and increase productivity of lakhs of farmers and other rural producers Thousands of STEMS micro-e-ntrepreneurs will get employment and sustainable incomes Hundreds of Companies rural operation will become commercially viable

14. Thank You Suggestions welcome to subodh@fulbrightweb.org