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EY newsletter for Government and the public sector

SignposttInside:

E- Governance 2

OMEGA 4

Aadhaar (UID program) 6

Public Private Partnership 8

Welcome to the first edition of Signpost, EY’s newsletter on the Government’s initiatives and projects. This newsletter aims to bring to you new ideas and approaches to large-scale capacity-building, social development projects and project management. We hope to present a fresh outlook on some significant government programs to be or already implemented in the country.

India’s recent election results amply demonstrated why it is the largest and most vibrant democracy in the world. It is clear that the new Government has its task cut out with numerous challenges faced in the Indian and global economies. The country faces some of the most complex issues ever encountered — from job creation and implementation of efficient service delivery systems to social security — to which solutions are not easy to come by. It is clear that what is needed is diversity of thought, experience and approach to overcome these challenges.

While social imbalances continue to remain a challenge, the lack of proper distribution channels for essential services has put India at a distinct disadvantage. This issue elaborates on a government e-District project relating to dissemination of high-volume citizen-centric services through an electronic service delivery mechanism.

The Central and state governments need to address myriad challenges, ranging from providing the underprivileged section of society respectable living options to ensuring their inclusive growth and economic development. While there may be various contrary points of views on the Government’s strategic choices, there is a consensus on there being an urgent need to eliminate inequalities. The much talked about Aadhar project is an effort in this direction. In this report, we also share the success of the unique governance modernization (OMEGA) project implemented by the Odisha Government and driven by it and the Department of International Development (DFID).

Today, proliferation of technology is viewed as a means to achieve growth, efficiency and a competitive advantage. Industry and policymakers need to work together to increase and accelerate their use of technology in every aspect of social development in the country. To illustrate this, we have provided details of a remarkable Public Private Partnership (PPP) project undertaken in Uttar Pradesh on a critical technology skill development program for employable youth in tier-II cities.

Do share your feedback and ideas with me at [email protected] I look forward to hearing you.

Kind regards

Gaurav Taneja India Government and Public Sector Leader, Ernst & Young

December 2014

2Signpost, EY newsletter for Government and public Sector

Overview and challenges:

The Government of India has introduced a Mission Mode Project (MMP), e-District, realizing the need to deliver high-volume citizen centric services at the district and sub-district levels. e-District provides a one-stop solution to citizens for most district-level government services, including issue of certificates, pension as well as on revenue and public distribution systems. It is one of the 31 MMPs under the National e-Governance Action Plan (NeGP), with the Department of Electronics and Information Technology (DeitY) being the nodal department. The project is implemented by state governments or their designated agencies. However, large and high-impact projects can pose a significant challenge in terms of operational control and their execution.

Support and intervention:

EY has been selected as the State Project Management Unit (SPMU) to provide program management services for rollout of e-District MMP in various districts and sub-districts in seven states. As the SPMU, EY has helped in business process re-engineering as well as in selection of a system integrator for this marquee program. EY is also responsible for monitoring deployment and commissioning required hardware as well as networking equipment for connectivity at the district and state levels. As part of this project, EY provides support to ensure that the concerned departments are able to manage these activities independently in the future.

Result and impact:

The project management role played by EY helps to coordinate the activities of various departments in implementing solutions that significantly improve G2C services in districts served by e-District. The project enables enhancement of monitoring systems, facilitates faster decision-making and reduces the number of public complaints. The various customer interface mechanisms increase the satisfaction of project personnel. e-District is expected to lead to an increase in accountability, efficiency and transparency in the operations of district administrations such that the public is benefited significantly.

Enabling effective implementation of e-District

High impact projects designed to create a distinct social advantage are often more time and cost consuming than originally planned. EY is supporting state governments on implementation of Project Management Units (PMUs) and initiation of e-District projects in seven states. This significantly contributes to improving the experience of citizens and the operational efficiency of the district-level operations of various government departments.

For more details contact:

T Koshy Partner — Advisory Services, EY Tel: +91 22 6192 3135 Email: [email protected]

EY’s e-Governance Services help government agencies implement various e-Governance solutions including fine-tuning of the vision, mission and objective of such projects. In addition, it enables them to develop strategies to translate their vision into reality, taking into account their key objectives, target groups and services, and prepare detailed e-Governance blueprints that clearly depict the requirements and outcomes of their planning processes.

3 Signpost, EY newsletter for Government and public Sector

“EY’s SPMU team in Uttar Pradesh has been continuously supporting us in various activities. SPMU consultants are not only supporting us in existing e-District activities, but are also taking initiatives and working hard in making project implementation successful in the state.”

Jiwesh Nandan Principal Secretary, Department of IT &

Electronics, Government of Uttar Pradesh


EY’s Social Infra and Economic Development Services provide a wide range of services and have specific competencies to promote the development of the private sector. This includes support on promoting investments; implementing an industrial policy; simplifying business-related regulations, developing the MSME sector, infrastructure and skills, and improving livelihood options and Public Private Participation (PPP) in the state’s social sector in the areas of education and health care through effective support provided to Central and State Government agencies.

Overview and Challenge

The Odisha Modernizing Economy, Governance and Administration Program (OMEGA) is one of the Department of International Development’s (DFID’s) flagship economic development programs in South Asia. Its sole objective is to address dire poverty in the state of Odisha. Implemented in 2011, its focus is to enable sustainable livelihood for the state’s citizens by strengthening the private sector, modernizing the Government and strongly targeting outcomes and results to achieve economic development in it.

Support and Intervention

EY has been engaged by the DFID to help the Government of Odisha focus on people below the poverty line. The objective of the project is to achieve economic development and inclusive sustainable growth that is aimed at facilitating private sector investments and strengthening institutional capacity-building in government departments. This can be achieved by enabling development of skills as well as by designing and implementing infrastructure and the future roadmap for the state in an investment-friendly climate with policy reforms.

Result and Impact

EY has helped to develop the traditional and emerging segments in Odisha’s private sector by helping the state attract investments to improve livelihood opportunities in urban and rural areas. Our team has helped the State Government initiate and implement reforms in the areas of governance, administration and operations by designing and delivering innovative technologies and people-related processes by leveraging its business-related experience. In addition, it has also assisted the Government in developing a monitoring and review framework for the state.

Our team has helped to identify poor and marginalized farmers, weavers, artisans and jobless rural youth and provided the required assistance in developing and upgrading their skills. It has also actively supported the creation of self-help groups (SHGs) and producer companies to provide people with means of livelihood and employment by linking up with various corporate organizations and providers of training/employment. This has helped in their integration into the corporate value chain. Around 14 Program Implementing Agencies (PIAs) have been empanelled to train more than 100,000 rural youth in a year. In addition, the team helped to establish sustainable linkages to develop agricultural products including onions, mangoes and other agricultural crops, thereby creating livelihood opportunities for around 150,000 beneficiaries across the state.

Achievement of overall development and inclusive growth in Odisha by setting up of strong technologies and people-oriented processes

Sound infrastructure and capacity-building in areas including governance, administration and operations are enabling factors for a growing economy. The OMEGA project has ensured long-term sustainable development in Odisha by including all sections of society within its ambit.


Siddhartha Das Executive Director — Advisory Services, EY Tel: +91 124 464 4202 Email: [email protected]


“It gives me immense pleasure to inform you that the EY OMEGA team in Odisha has been continually supporting us in various investment promotion activities at Industrial Promotion & Investment Corporation of Odisha Limited (IPICOL). OMEGA consultants are not only supporting us in existing IPICOL activities, but are also taking initiatives to suggest and spearhead a number of activities to augment the state’s investment promotion agenda. We appreciate the impeccable quality and punctual delivery your team has delivered.”

Mr B K Dash Chief General Manager,

Industrial Promotion & Investment Corporation of Odisha Limited


EY’s e-Governance Services help government agencies implement the e-Governance initiative by defining its vision, mission and objectives. The firm’s wide experience in working with the UIDAI and the National Population Register (NPR) enables it to provide its Advisory services for national ID programs run by the ministries of different countries. Its services include strategic planning to identify clients’ management, business design, technology architecture, biometric solution designing, procurement and program management processes.

Overview and challenges

The Government has realized that one barriers preventing poor people from accessing financial services is their lack of formal identification documents. To address this, it initiated and implemented the Aadhar program, which seeks to eliminate this obstacle by easing identification of residents whose credentials can be verified electronically. Initially, this feature of Aadhar was not leveraged to enable customers to open bank accounts and access financial services. However, roll-out of Direct Benefit Transfer (DBT) in select G2P schemes will enable beneficiaries of the initiative to avail of benefits in their Aadhar-enabled bank accounts.

Support and intervention

EY’s work on this project entailed conducting a detailed diagnosis of DBT in five districts to identify barriers in the path of Aadhar-enabled financial service delivery and designing strategic interventions to facilitate rollout of DBT for implementation of G2P schemes. The interventions were aimed at addressing various challenges such as limited awareness of beneficiaries, the inconvenience faced by residents in completing the requisite procedures, lack of suitable ICT applications to reduce the effort made by district administration, etc.

EY is currently working with the Unique Identification Authority of India (UIDAI), Ministry of Rural Development (MoRD), the National Payments Corporation of India (NPCI) and CSC-SPV to incubate the proposed interventions. Our team is coordinating with the MoRD to implement DBT in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for its around 90 million beneficiaries.

Result and impact

While the challenge of countering financial inequality and underlying forces is an ongoing struggle, EY’s engagement in rollout of the Aadhar program helped to set guidelines for smooth scaling up of this landmark project. Our team helped the MoRD put in place processes to move toward Aadhar-based payments for beneficiaries. Its work with CSC-SPV and NPCI benefitted residents significantly. EY’s aim is to achieve a mature state in each intervention area so that the learning from this can be used by government and non-government agencies to accelerate the rate at which beneficiaries become “DBT ready.”

Roll-out of Aadhar aimed to reduce inequality and improve poor and marginalized citizens’ access to financial services

Aadhar complements provision of financial services to poor people and advances their financial inclusion. EY has been working with the Bill and Melinda Gates Foundation’s Financial Services for the Poor (FSP) team to improve the reach of digital payment platforms and expand the range of financial services offered to the poor in India.


Guru Malladi Partner & Leader — Government Advisory Service, EY Tel: + 91 124 464 4188 Email: [email protected]


“The Foundation’s Financial Services for the Poor (FSP) team has worked closely with EY on a complex, multi-faceted effort to accelerate the rate at which Aadhar numbers are mapped to bank accounts and seeded in the government scheme database. During Phase I of this project, EY did a great job distilling this problem into several concrete interventions. During Phase II, they worked closely with the UIDAI, the Ministry of Rural Development, and other partners to implement each of the proposed recommendations. I have heard universally positive feedback from these government partners in EY’s ability to move the needle on these fronts.”

Daniel Radcliffe Senior Program Officer,

Bill & Melinda Gates Foundation


EY’s PPP Services focus on development of infrastructure and provisioning of related services through participation of the private sector. It aims to promote development of efficient management of assets and effective service delivery systems by leveraging the potential of the sector. As part of our solution, we advise government bodies on initiating and implementing relevant projects, performing technical and financial viability studies, structuring and putting in place optimal risk-sharing mechanisms and establishing bid process management systems for selected private players. We also advise governments on post-award activities including financial closure and project management.

Overview and challenges

The UP Government has embarked on a unique PPP project, realizing that shifting the emphasis from mere job creation to increasing employability of the youth could lead to additional recruitment and better quality jobs in the state’s organized and unorganized sectors. Uttar Pradesh Electronics Corporation Limited, a Government of Uttar Pradesh undertaking, selected EY to draft guidelines for development of IT cities in tier II cities and IT/ITeS parks in tier II and tier III cities to generate much-needed employable skills in the state. EY’s guidelines were approved by the Government and the team helped the department draft standard bidding documents to select private developers and technical consultants. The guidelines and standard bidding documents will play an important role in establishment of IT/ITeS infrastructure in Uttar Pradesh.

Support and intervention

EY initiated and implemented its PPP solution to help the Government of Uttar Pradesh meet the urgent need to generate employment for youth in the state. Under this project, the Government wants to develop more than 20 IT/ITeS parks during the first phase. The guidelines and standard bidding documents are expected to play a vital role in establishment of IT/ITeS infrastructure in the state. Most importantly, these will be followed by all development agencies that develop IT/ITeS parks and cities in the state by engaging private sector partners/entering joint ventures with development agencies and private partners for this purpose. EY has designed models for creation of infrastructure to provide related services with the participation of the private sector. The firm also advises the Government on post-award activities including financial closure and project management.

Result and impact

As part of this initiative, EY has successfully closed the first project of its kind, IT City-SEZ, in the PPP mode at Lucknow by selecting and working with a private partner on it. The firm conceptualized the IT City-SEZ project, performed technical and financial due diligence, structured the project appropriately, developed a risk-sharing mechanism, organized road shows and helped in the process of inviting and evaluating bids. The project is expected to generate direct employment opportunities for more than 25,000 people and indirect employment for more than 50,000 citizens, and attract private sector investment of INR15 billion to the state.

Unique Skill Development program powered by EY’s PPP solution for generation of significant employment opportunities for youth in Uttar Pradesh

Generating employment for the youth is a challenging task for the Government and the private sector. EY’s PPP services aim to create around 75, 000 IT employment opportunities in Uttar Pradesh.


Abhaya Krishna Agarwal Partner & Leader — PPP Government & Transaction Advisory Services, EY Tel: + 91 11 4363 3060 Email: [email protected]


“Your (EY) team is working exceptionally well for preparation of guidelines for setting up of IT City & IT park in the state of Uttar Pradesh. Our corporation is pleased to work with your Mr Adil Zaidi (and team), who has played a vital role in preparing the guidelines.”

Prabhat Mittal Managing Director

U. P Electronics Corporation Limited

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