IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-80290) ON A LOAN IN THE AMOUNT OF USD 150 MILLION TO THE REPUBLIC OF INDIA FOR

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of The World Bank Report No: ICR2541 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IBRD-80290) ON A LOAN IN THE AMOUNT OF USD 150 MILLION TO THE REPUBLIC OF INDIA FOR E-DELIVERY OF PUBLIC SERVICES DEVELOPMENT POLICY LOAN March 25, 2013 Poverty Reduction and Economic Management Sector Unit India Country Management Unit South Asia Region

2 CURRENCY EQUIVALENTS (Exchange Rate Effective as of March 20, 2013) Currency Unit = Indian Rupees Rs = US $1 INDIA GOVERNMENT FISCAL YEAR 1 April to 31 March ABBREVIATIONS AND ACRONYMS BPR Business Process Reengineering ISR Implementation Status and Results CAS Country Strategy IT Information Technology CPS Country Partnership Strategy MPR Monthly Progress Report CSCs Common Service Centers MMPs Mission Mode Projects DEA Department of Economic Affairs M&E Monitoring and Evaluation DeitY Department of Electronics and NeGP National e-governance Plan Information Technology NeGD National e-governance Division DIT Department of Information OPCS Operations Policy and Country Services Technology PDO Program Development Objectives DPL Development Policy Loan PMIS Program Management Information System DPR Detailed Project Report PPP Public Private Partnership ESD Electronic Service Delivery RBI Reserve Bank of India FY Fiscal Year RTI Right To Information GoI Government of India RTPS Right To Public Services GDP Gross Domestic Product SDCs State Data Centers IBRD International Bank for Reconstruction SeMTs State e-governance Mission Teams and Development SIL Specific Investment Loan ICR Implementation Completion and SWANs State Wide Area Networks Results Report TA Technical Assistance ICT Information and Communication UID Unique Identification Technology UT Union Territory Vice President: Isabel Guerrero, SARVP Country Director: Onno Ruhl, SACIN Sector Manager: Antonius Verheijen, SASGP Task Team Leaders: Grace Morgan, SASGP and Shashank Ojha, TWICT ICR Team Leader: Suresh Gummalam, EASPI Erwin Ariadharma, EASPI; Farah Zahir, SASGP ICR Team Members: Satyendra Prasad, SASGP; Sapna John, SASGP

3 INDIA E-DELIVERY OF PUBLIC SERVICES DEVELOPMENT POLICY LOAN CONTENTS Data Sheet A. Basic Information B. Key Dates C. Ratings Summary D. Sector and Theme Codes E. Bank Staff F. Results Framework Analysis G. Ratings of Program Performance in ISRs H. Restructuring 1. Program Context, Development Objectives and Design Key Factors Affecting Implementation and Outcomes Assessment of Outcomes Assessment of Risk to Development Outcome Assessment of Bank and Borrower Performance Lessons Learned Comments on Issues Raised by Borrower/Implementing Agencies/Partners Annex 1: Bank Lending and Implementation Support/Supervision Processes Annex 2: Examples of State Government MMPs Annex 3: Policy Matrix Annex 4: Single Tranche DPL Prior Actions/Conditions and Status Annex 5: NeGP Monitoring Reports Annex 6: Results at a Glance Annex 7: Overall Program Outcome Achievement Annex 8: Summary of Findings Annex 9: Policy and Technical Support Annex 10: Summary of Borrower's ICR and/or Comments on Draft ICR... 43

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5 A. Basic Information Country: India Program Name: e-delivery of Public Services Program ID: P L/C/TF Number(s): IBRD ICR Date: 03/28/2013 ICR Type: Core ICR Lending Instrument: DPL Borrower: Original Total Commitment: Revised Amount: USD M GOVERNMENT OF INDIA USD M Disbursed Amount: USD M Implementing Agencies: Department of Electronics and Information Technology Cofinanciers and Other External Partners: B. Key Dates Process Date Process Original Date Concept Review: 01/19/2011 Effectiveness: Appraisal: 02/22/2011 Restructuring(s): Approval: 03/31/2011 Mid-term Review: Revised / Actual Date(s) Closing: 06/30/ /30/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Risk to Development Outcome: Bank Performance: Borrower Performance: Moderately Satisfactory Moderate Moderately Satisfactory Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Quality at Entry: Moderately Satisfactory Government: Moderately Satisfactory Quality of Supervision: Moderately Satisfactory Implementing Agency/Agencies: Satisfactory Overall Bank Overall Borrower Moderately Satisfactory Performance: Performance: Moderately Satisfactory C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Performance (if any) Potential Problem No Quality at Entry None Rating: i

6 Program at any time (Yes/No): (QEA): Problem Program at any time (Yes/No): No Quality of Supervision (QSA): None DO rating before Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as % of total Bank financing) Banking 7 7 Central government administration Information technology Sub-national government administration Theme Code (as % of total Bank financing) Managing for development results Other accountability/anti-corruption Other public sector governance E. Bank Staff Positions At ICR At Approval Vice President: Isabel M. Guerrero Isabel M. Guerrero Country Director: Onno Ruhl N. Roberto Zagha Sector Manager: Antonius Verheijen Joel Hellman Program Team Leader: Grace Porter Morgan Ranjana Mukherjee ICR Team Leader: ICR Primary Author: Suresh Gummalam Grace Porter Morgan Suresh Gummalam F. Results Framework Analysis Program Development Objectives (from Project Appraisal Document) The India e-delivery of Public Services DPL supports the government's objective of increasing access to online services by citizens in their locality. It will do this through supporting policy and institutional actions that place higher emphasis on coordination and increase outreach to citizens. ii

7 Revised Program Development Objectives (if any, as approved by original approving authority) There were no revised Program Development Objectives. (a) PDO Indicator(s) Indicator Indicator 1 : Value (quantitative or Qualitative) Baseline Value Original Target Values (from approval documents) Strengthen state level institutions in e-governance 1000 services ( e-services at state e-services in less level (0 e-services in advanced states) less advanced states) (130 e-services (11 e-services through through PPP PPP mode) mode) Formally Revised Target Values Actual Value Achieved at Completion or Target Years 1776 e-services at state level and 225 e-services through PPP mode Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) Indicator 2 : Development of technical standards for e-governance Value 0 e-services from 75 e-services from 143 e-services from (quantitative or certified systems certified systems certified systems Qualitative) Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) Indicator 3 : Improve inter-agency coordination and monitoring e-governance Value (quantitative or Qualitative) 0 e-services monitored 124 e-services monitored 246 e-services monitored Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) Indicator 4 : Improve access to services by using the mobile platform while increasing the pace of internet penetration million broadband 15 million subscription (Sept 8.77 million (end broadband 2012); 95,649 Value March 2010); 80,000 connections; Common Services (quantitative or Service Access Points; 125,000 Service Center (CSC) rolled Qualitative) 0 services on mobile Acces Points; 50 out with 80,733 platform services on mobile connected CSCs platform (Sept 2012); 113 e- services operational iii

8 under the PULL Services; 126 dep. integrated, services operational under PUSH SMS channel Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) Indicator 5 : Facilitate increased participation of users in design and evaluation of e- governance projects Value (quantitative or Qualitative) 0 e-services 100 e-services 50 services under 5 projects would have incorporated user participation in design and impact assessment in the financial year Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) Indicator 6 : Improve service orientation of government processes and officials Value (quantitative or Qualitative) 380 e-services delivered through 8 e-services delivered re-engineered through re-engineered processes; 10 processes; 0 states states whose whose officials have officials have completed reorientation completed or leadership program reorientation or leadership program 246 e-services delivered through re-engineered process; 200 more e-services to be accomplished by the end of the FY; Number of states participated in the Specialized Training on e- Governance program is 20 Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) Indicator 7 : E-services Delivery Law Value (quantitative or Qualitative) Second Administrative Reform Commission recommends developing full legal framework for e- governance A draft ESD Bill has been formulated and submitted to the Union Cabinet EDS Bill was introduced in the Lok Sabha on 27th December The Bill was referred to the Parliament iv

9 Standing Committee on IT on 5th January The Committee has tabled its Report to Lok Shaba (laid in Rajya Sabha) on 30th August 2012 Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) Indicator 8 : Uniform and predictable verification of e-service users Value (quantitative or Qualitative) 0 e-services verifying users 25 e-services verifying users 18 e-services Date achieved 02/22/ /30/ /30/2012 Comments (incl. % For details, please refer to Annexes 3, 6, and 7. achievement) (b) Intermediate Outcome Indicator(s) Indicator Indicator 1 : Value (quantitative or Qualitative) Date achieved Comments (incl. % achievement) Baseline Value Original Target Values (from approval documents) Formally Revised Target Values Actual Value Achieved at Completion or Target Years There were no Intermediate Outcome Indicators in the Operation Policy Matrix for e-delivery of Public Services DPL. G. Ratings of Program Performance in ISRs No. Date ISR Archived DO IP Actual Disbursements (USD millions) v

10 H. Restructuring (if any) Not Applicable vi

11 1. Program Context, Development Objectives and Design 1.1 Context at Appraisal 1. Globally, rapid economic growth over the past decade has been slowing down in the context of a weak external environment and structural constraints. However, India grew faster than 92 percent of the world s nations. Real GDP expanded at an average annual rate of 7.6 percent between FY2000/01 and FY2010/11, helping the country reduce poverty (at the official poverty line) by 1.5 percentage points per year between 2004 and India also weathered the global crisis relatively well, with GDP growth slowing somewhat to 6.7 percent in FY2008/09 and rebounding strongly to 8.4 percent in the two subsequent years. However, in FY2011/12 growth fell to a nine-year low of 6.5 percent, with the slowdown most pronounced in mining and manufacturing sectors amid a deceleration in the pace of investment activity. On the external side, the trade deficit in FY2011/12 widened to a historic high of 6.8 percent of GDP as continued weakness in the Euro zone translated into weak demand from India s main export markets. As a result, and despite continued strong growth in remittances, the current account deficit also worsened to a record 4.2 percent of GDP in FY2011/12. Meanwhile, inflation remained persistently high at 8.9 percent in FY2011/12 (after averaging 5.6 percent during the previous decade) despite monetary tightening by the Reserve Bank of India (RBI). 2. Electronics and Information Technology (IT) has been the fastest growing segment of Indian industry and has consistently contributed to economic growth in India. The sector grew ten-fold in revenue terms from USD 4.8 billion in 1997/1998, to USD 47.8 billion in 2006/2007. Its contribution to GDP is estimated to have grown from 1.2 percent to 5.4 percent over the same period. The Indian IT and IT-enabled service industry continues to grow five times as fast as the global IT services industry. The industry is supported by a large skilled manpower base across the country and there is active and healthy competition amongst states to attract investments in infrastructure as well as to establish software parks. 3. Against this backdrop of a largely private sector-led expanding IT sector, the Bank made an investment of $150 million in the Government of India s $9 billion National e-governance Plan ( NeGP ) aimed at strengthening and deploying IT capacity to remedy deep-seated service delivery failures. The NeGP initiative was, in fact, one of many central and state government strategies to improve the quality and efficiency of public service delivery. Other initiatives included: the Right to Information ( RTI ), the Right to Public Services ( RTPS ), Grievance Redress, Performance Management (through the use of Results Framework Documents), and other sectorspecific initiatives. Underpinning many of these efforts was an interest in using e-governance platforms to create a more citizen-centered approach to public service delivery, to decrease leakages and corruption, and to address concerns of disaffection and disempowerment. The Government strengthened its commitment to this goal in mid-2012 by investing an additional $3.6 billion in the establishment of broadband connectivity to 250,000 villages. (NeGP funding only goes to the block level.) Currently, implementation of these efforts is converging at the state level. 4. The push for service delivery improvement has been spurred by India s weak performance on key human development indicators. This underperformance is attributed to a variety of factors including weaknesses in public management systems and capacities, rent-seeking, and a variety of other institutional constraints. Generally, it is the poor who suffer the most from poor quality service delivery. These core problems underscore the Bank s commitment to improving service delivery, as reflected in both its Country Assistance Strategy ( CAS ) and the Country Partnership Strategy (CPS) for under preparation which focuses on poverty reduction and shared prosperity. 1

12 5. The National e-governance Program is one key element of the Government of India s efforts to improve service delivery. Approved by the central government in May 2006, the National e-governance Plan ( NeGP ) was introduced to replace an ad hoc array of e-governance initiatives across individual agencies and states that had developed throughout the 1980s and 1990s. The ambitious goal of the government-wide NeGP initiative is to make all government services accessible to the common citizen in his/her locality, through common service delivery outlets. In essence, the NeGP sought to increase the geographic reach of government service delivery and make it more accessible to citizens of all socio-economic strata. The initiative focused on increased efficiency, equity and transparency of services in order to promote a more citizen-friendly service environment specifically by reducing the burden of physical visits to separate agencies for citizens, providing ready access to information about the availability of services, and reducing the discretion of officials in the delivery of public services. 6. More specifically, the NeGP has sought to transform service delivery across the country through the following activities: The introduction of a massive new IT infrastructure (including State Data Centers in all states / Union Territories ( UT ) and State Wide Area Networks (SWANs) which connect all levels of government down to the block level). Under NeGP, it is proposed to create State Data Centers for the States to consolidate services, applications and infrastructure to provide efficient electronic delivery of Government to Government, Government to Citizen, and Government to Business services. The creation of IT-enabled Common Service Centers (CSCs) which provide one-stop access to e-services at the doorstep of many Indian villages. Use of the mobile phone network to expand the access of citizens to various e-services. Sectoral and other priority projects (Mission Mode Projects, MMPs ) to be transformed using e-delivery of services. "Mission Mode" projects are owned and spearheaded by various line Ministries concerned for Central, State, and Integrated MMPs. A full listing of MMPs can be found at: Selected state MMPs are listed in Annex 2. The establishment of common standards, specifications, and policies to ensure that individual e-services function effectively as part of a broader government-wide system, allowing sharing and cross-referencing of information across services. A targeting of key points of interaction between citizens and the state including birth and death registration, tax filing, land records, driver s licenses and vehicle registration, passports and visas, agricultural extension services, and a wide range of municipal and panchayat services. In addition, the NeGP has aimed to enable much wider access to a number of critical private sector services such as banking, insurance, and trade. The establishment of State e-governance Mission Teams (SeMTs) and central NeGD staff to provide the required capacity to implement the NeGP across the country. 7. While headway has been made in a number of these areas, other areas (particularly the MMPs and low-income states) have exhibited weaker performance. The implementation of the MMPs is the primary responsibility of line ministries and departments, yet, many of the state departments, in particular, have not made NeGP a high priority. Furthermore, low-income states have been slower to build the necessary capacity to implement the NeGP, creating a noticeable gap 2

13 between these states and more advanced states which have pursued a more aggressive implementation strategy. The obstacles related to MMPs and low-income states were evident in the early phases of the NeGP program, and laid the foundation for the Bank engagement in In 2010, the Government recognized that the uneven progress of NeGP was not the result of funding constraints or the absence of specific investments, but rather challenges associated with cross-cutting policy and coordination at the program level. Some of the critical issues included underperformance of the MMPs, the lack of a clear policy framework to guide the disparate IT initiatives, and a growing gap between more advanced states and those with substantially lower capacity. Government policies were needed to provide a framework for the program and institutional actions in key areas such as government process re-engineering, the use of mobile phones in accessing services, citizen engagement in the design of e-services, and the framework for Public Private Partnerships in public service delivery. A comprehensive national program of capacity building and institutional strengthening was called for to address the uneven progress in specific states and agencies as well as to re-orient officials to new ways of interacting with citizens. A stronger methodology and implementation framework for monitoring and impact assessment was required to track progress, to ensure coordination, and to focus central assistance in areas requiring additional support including in states where e-governance has been much slower to take off. 8. In order to address these implementation constraints, GOI requested programmatic support from the World Bank for NeGP in Given the background of its six year technical assistance engagement with the Department of Information Technology (DIT, subsequently renamed Department of Electronics and Information Technology or DeitY), the Bank was well positioned to respond to this request speedily. The request created a new opportunity for the Bank to restructure its e-governance engagement with the Government of India from a SIL to a DPL, and to ensure that citizen service delivery was placed at the center of the e-governance program. This approach was more consistent with both Bank and GoI priorities, and it recognized the findings of the 2008 Administrative Reforms Commission report which emphasized that governance reforms rather than ICT investments should be the focus to achieve maximum outcomes and benefits from NeGP. A programmatic DPL provided a focal point for the Government to convene departments and levels of government around a service delivery reform agenda that could leverage the efficiencies and access opportunities of IT. 9. The adopted programmatic Development Policy Loan (DPL) aligned well with the Country Assistance Strategy (CAS). The DPL contributed to the CAS third pillar in which the World Bank commits to support improvements in the organization and delivery of publicly-financed services and its cross cutting focus on enhancing governance as a pre-requisite for inclusive growth and poverty reduction. 10. The investment was structured as a programmatic DPL so that the Bank could leverage a longer-term engagement with the government. While the DPL had a 2-year programmatic design (as reflected in the policy matrix), the funding amount of $150 million was only for the first year. The second year of the operation, which was also intended to be for $150 million, required a separate negotiation. The program design provided some flexibility to the Government given potential complications related to the Single Borrower Limit (SBL). The concern about reaching the SBL developed as a result of the rapid commitment of IBRD resources to manage the impact of a global financial crisis. 1.2 Original Program Development Objectives (PDO) and Key Indicators (as approved) 11. The overarching development objective of the DPL series was to increase access to online services by citizens in their localities. The DPL aimed to do this through supporting policy and institutional actions in two pillars: 3

14 Pillar I: Higher Emphasis on Coordination (involving 3 Reform Areas), and Pillar II: Increased Reach Out to Citizens (involving 5 Reform Areas). The diagram below shows all 8 reform areas and their related indicators associated with measuring performance. 1.3 Revised PDO (as approved by original approving authority) and Key Indicators, and Reasons/Justification 12. The PDOs were not revised. 1.4 Original Policy Areas Supported by the Program 13. Each of the eight reform areas supported by the DPL is described below, accompanied by its expected results. Pillar 1. Higher emphasis on coordination 14. Policy Area 1.1: Strengthen states institutions in e-governance. The institutional strengthening program aimed to support more robust implementation of the NeGP in low-income states by: increasing state capacity to prepare and implement e-governance initiatives, and laying the foundation for greater private sector participation through PPPs in e-governance efforts (as private partners, financial institutions, and investors will be better informed about the business potential of e-services). State-level institutional strengthening was intended to result in the implementation of a larger number of NeGP project proposals from states, decreasing the gap between the more and the low- 4

15 income states as well as enhancing e-service delivered through the PPP mode. Ultimately, the state level institutional strengthening aimed to increase the number of available services being offered online. 15. Policy Area 1.2: Development of technical standards. Standards for e-governance (including those related to hardware, software and websites) were critical to promote sharing of information and seamless interoperability of data across e-governance applications. Technical standards needed to be developed to ensure the transparency, efficiency, reliability and interoperability of all of government systems. Open standards would protect systems from becoming vendor locked-in and allow technology neutrality. To track progress towards interoperability and reliability of services, compliance of e-services with technical standards for e- governance would be measured. 16. Policy Area 1.3: Improve Inter-Agency Coordination and Monitoring of e-governance. The success of NeGP depended on the actions of many ministries and agencies at different levels of government, requiring an unusually high degree of coordination. A strong monitoring system was particularly important to generate accurate and up-to-date performance information on all Mission Mode Projects (MMPs). The DPL involved the systematic collection of information to contribute to improved decision making at the level of the Apex Committee. Better coordination would lead to faster implementation, less duplication and a more optimal allocation of resources. This in turn would lead to greater access and better quality of e-services. Pillar 2. Increased outreach to citizens. 17. Policy Area 2.1: Improve access to services by using mobile platforms and increasing the pace of internet penetration. The government's aim of providing web-enabled, anytime, anywhere access to information and e-services was constrained by limited access to broadband services, especially in rural areas. This limitation adversely affected the success of Common Services Center Scheme. Providing broadband to rural areas, setting up Common Services Centers, and making services available on the mobile platform aimed to increase citizen access to online services. 18. Policy Area 2.2: Facilitate increased participation of users in design and evaluation of e- governance projects. The government sought to make e-services user-centric by altering the asymmetry in power between users and public officials in determining the design and evaluation of Mission Mode Projects (MMPs). To this end, guidelines would be developed to define how MMPs would: (i) conduct needs assessments, (ii) involve stakeholders, and (iii) measure performance on the basis of user satisfaction. The objective was to improve service delivery as a result of enhanced user feedback. 19. Policy Area 2.3: Improve service orientation of government processes and officials. User surveys revealed that computerization of existing manual processes through e-services was not having a substantial impact on customer convenience, cost reduction, waiting time, and corruption. Re-engineering of existing business processes was needed to make significant service delivery improvement. This would require mapping of existing processes, determination and elimination of duplicate and unnecessary steps, and monitoring of results. In addition, the successful design and implementation of e-governance would require a new orientation of public officials emphasizing customer service instead of control, knowledge sharing instead of knowledge hoarding, cooperation instead of competition, and transformation instead of computerization of processes. This policy area would focus on both business process e-engineering and re-orientation or leadership programs for officials. 5

16 20. Policy Area 2.4: Electronic Service Delivery law. The DPL aimed to support the adoption of legislation that made electronic delivery mandatory for priority public services, establishing a mandatory timeline for transforming public policies. Such legislation would define the institutional framework for e-service delivery and would address the role, functions and responsibilities of different government organizations, the mechanism for coordination across government, the definition of an oversight mechanism, and the relevant financial arrangements. The law would provide the legal framework for a gradual, nationwide improvement in computerization and online delivery of government services in all states and UTs. The common timetable set by the act would encourage low-income agencies to implement their MMPs. It would make public officials accountable for achieving benchmarks of e-service availability and quality. It would empower citizens to demand and receive quality services and to hold officials accountable for not doing so. 21. Policy Reform 2.5: Uniform and predictable verification of e-service users. To deliver electronic services, various types of identification need to be automated. Several electronic services have already developed systems to verify these identifications. A national verification framework is required to make sure of the identity of the online service user and to manage identity related risks. Verification is commonly done by providing a username and a password. The DPL aimed to put in place systems of verification which could be accessed anytime, anywhere associated with e-services. 1.5 Revised Policy Areas (if applicable) N/A 1.6 Other significant changes 22. The design of the original DPL reflected the request by the GoI for a series of two single tranche DPLs, in IBRD s FY11 ( ) and FY 13 ( ). FY12, or year , would allow for first year results to take hold and to prepare the second DPL. The DPL which is the focus of this ICR was the first operation of a broader programmatic series. In the Project Document the first operation is referred to as E-delivery of Public Services DPL I. The project design assumed that the first year operation would be accompanied by a second year operation, referred to as E-delivery of Public Services DPL II. Funding for DPL II would be secured through a separate funding process, culminating in FY13. Evidence of the programmatic design can be seen in the policy matrix, which includes policy action triggers and targets for 2 individual years, and In the middle of the first year operation of DPL I, the Government of India expressed reluctance about a second year operation. The GoI indicated it was considering whether other types of non-dpl Bank financing would be more appropriate than the originally designed DPL. The government also mentioned the possibility of refocusing the 2 nd year operation to more state-oriented activities. The government s deliberations were fundamentally linked to the IBRD Single Borrower Limit ( SBL ). 24. After months of discussion, these communications culminated in a formal communication (dated May 4, 2012) from the Government of India DEA to DeitY stating that it would not proceed with E-delivery of Public Services DPL II. The government later indicated that the World Bank should refocus its e-governance efforts to provide TA and capacity building. (Two months from closing, an Office Memorandum dated May 4, 2012 issued by the Ministry of Finance/DEA to the Ministry of Communications and IT stated that "while reviewing IBRD/IDA pipeline projects" the Government of India would "not go ahead with E-Delivery of Public Services DPL II" and, instead, 6

17 "may consider a small TA/Capacity Building project as a fresh project". The comment reflects an interest of the GoI in receiving TA, not additional financing as of May 2012.) 25. The cancellation of E-delivery of Public Services DPL II altered the program design of the originally-approved programmatic E-delivery of Public Services DPL. Instead of supporting a programmatic DPL (one DPL with a series of two operations), the World Bank found itself supporting a single-tranche, single-year DPL. The rest of this ICR evaluates the single-tranche, single-year DPL, but acknowledges that the original design was a multi-year programmatic DPL. 2. Key Factors Affecting Implementation and Outcomes 2.1 Program Performance 26. Actual performance data by indicator and reform area can be seen in the policy operation matrix, which is provided in Annex 3. In addition, the tables in Annex 4 provide a list of each reform area and the prior actions/conditions required for release of funding, and a comment on the status of the reform area. As is reflected in these tables, all 7 first-year prior actions were met, and 6 of 7 second year triggers were achieved. Of the first year prior actions, all 7 prior actions were verified by the project team and confirmed by legal counsel prior to Board approval. As it relates to the second operation triggers, all were met and the remaining trigger is in process of being met. 27. While loan disbursement was delayed, the delay does not appear to have affected program performance. The delay in disbursement was the result of SBL constraints and DEA efforts to ensure that DeitY was well-prepared to manage and spend the DPL funds. While it took some time for the Government to manage through these problems (six months in total), there is no indication that these financial problems had any relationship to the Government s commitment to the NeGP. The table below provides information related to the amount and release date of funding, which reflects late disbursement of the loan. Single Tranche DPL - Amount and Release Date Tranche # Amount (USD) Expected Released Actual Released Release Date Date Tranche 1 149,625,000 September 1, 2011 December 20, 2011 Regular Front-end Fee 375, days after loan effectiveness date (July 1, 2011) 2.2 Major Factors Affecting Implementation 28. Despite the disbursement delay, the major factors affecting implementation have mostly been positive, contributing to the progress of NeGP implementation. These include the following: Extensive technical assistance and consultations provided by the Bank to the GoI prior to DPL preparation and throughout the implementation of the loan. This technical assistance strengthened the program management and institutional framework of the NeGP. In addition, the Bank played an important role of convener by pulling together relevant departments and ministries to develop a needed consensus within the Government of India for the policy reform framework. Awareness and commitment of the Government of India to build a positive enabling environment for the NeGP. The success of the NeGP program was predicated on highlevel commitment of central and state governments. Senior officials recognized that India s 7

18 strong private sector IT capacity was a resource to be leveraged. Many of these visionary leaders provided stalwart support of the NeGP, helping the center and state governments to overcome major challenges related to cross-agency coordination, policy and institutional frameworks, budget support and PPP arrangements, and legal matters related to privacy and data security. Well defined roles and responsibilities of central and state entities to support NeGP implementation. In accordance with the NeGP, new institutions have been created, such as Apex Committees and SeMTs, which have resulted in central and state e-governance capacity that has depth and sustainability. A description of various organizations involved in NeGP implementation is available on the following websites: and There have been challenges affecting program implementation. They include: Insufficient user participation in the design and evaluation of projects, and weak MMP performance. Both of these aspects of the NeGP were recognized as implementation challenges before and during the DPL, and they remain so today. Ineffective coordination between DIT and line ministries rests at the heart of the poor MMP performance. The Bank, as convener, lost an opportunity to support efforts to overcome these organizational barriers to move forward the MMP reforms. Performance gaps between more advanced and low-income states continued to be a challenge. The Program Document clearly recognized the NeGP performance gaps between various states in India. In fact, parts of the NeGP were designed to address these gaps, particularly in areas where performance was attributed to capacity issues. While progress is being made in this area, performance gaps between states continues to be an issue, reflected in the request that the Bank shift its focus to low-income states. 2.3 Monitoring and Evaluation (M&E) Design, Implementation and Utilization: 30. A stronger institutional framework was established to monitor the implementation of NeGP. At the center, the Prime Minister s Committee on NeGP was developed to provide leadership, prescribe deliverables and milestones, and monitor the overall implementation of NeGP. The Prime Minister s Committee on NeGP included representation drawn from relevant ministries/departments, planning commission, industry experts, and others. The Department of Electronics and Information Technology as the implementing agency of NeGP, was tasked with the oversight function associated with monitoring and evaluation of NeGP implementation at state and central levels; this included infrastructure and technical components. In the states, an Apex Committee headed by Chief Secretary would provide implementation oversight and interdepartmental coordination. 31. The World Bank provided extensive input and technical assistance to the Government of India to support the development of a Monitoring and Evaluation (M&E) framework for the NeGP. This was an important contribution to the program management of NeGP, reflected in the government s adoption of the M & E framework to provide a base for a more extensive M&E system. The system has been further enhanced using an IT-based application called the Program Management Information System (PMIS). This monitoring system is now being used routinely to track performance of Mission Mode Projects, infrastructure development, and other critical aspects of the NeGP. Currently, there have been around 22 operational projects actively tracked through the system. PMIS can be viewed at Monthly Progress Reports (MPR) include review and analysis of MMP performance using standardized templates. Similarly, the status of core 8

19 infrastructure is also reported through the MPR. The Prime Minister has appointed a NeGP Expert Group which reviews each of the MMPs in order to identify critical operational, legal, financial and institutional issues and bottlenecks. See Annex 5 for examples of routine monitoring reports and evaluations. 32. The Department of Electronics and IT also monitors a number of electronic transactions related to service delivery by states and UTs. Currently, there are more than 80 million electronic service transactions per month conducted under the NeGP by states/uts. 2.4 Expected Next Phase/Follow-up Operation (if any): 33. While the Bank engagement with NeGP formally ended with the DPL, the Government of India supports ongoing Bank engagement at the state level to facilitate NeGP implementation. In a May 2012 Office Memorandum from the Ministry of Finance/Department of Economic Affairs (DEA) to DeitY, the DEA suggests that the DeitY focus its e-governance efforts with the Bank in the areas of technical assistance and capacity building. Later the GoI clarified that it prefers that the Bank focus its e-governance efforts on NeGP implementation in low-income states. This suggestion is consistent with the Bank s re-enforced emphasis on low-income states as reflected in the Country Partnership Strategy (CPS) for under preparation. To this end, the Bank has engaged with several state governments including the states of Assam, Mizoram and Madhya Pradesh to support e-governance service delivery improvement. Non-lending technical assistance in this area is being provided to both Assam and Mizoram, and requests for investment lending are underway for all three. 3. Assessment of Outcomes 3.1 Relevance of Objectives, Design and Implementation 34. The objective of the E-delivery of Public Services Development Policy Loan was to support the GoI in implementation of its National e-governance Plan through supporting policy and institutional actions that placed higher emphasis on coordination and increased outreach to citizens. The goal of this government-wide initiative was to make all government services accessible to the citizen in his/her locality, through common service delivery outlets and to ensure efficiency, transparency and reliability of such services to realize basic needs at affordable costs. 35. The program objective was relevant to the Country Assistance Strategy (CAS) for India covering Fiscal Years 2009 to The loan objective was pertinent to the CAS third pillar in which the Bank committed to support improvements in the organization and delivery of publiclyfinanced services as a means of addressing India s weak performance on key human development indicators. The loan objective also contributed to the CAS cross cutting focus on enhancing governance as a pre-requisite for inclusive growth and poverty reduction. By making affordable public services available to citizens, the DPL was intended to contribute to the CAS first pillar of making growth inclusive. 36. DPL1 outcomes are highly relevant to the new CPS (Engagement Area 3 Inclusion ) and its focus on working in low-income states. Towards the end of DPL I, at the request of the GoI, the Bank refocused its e-governance efforts on low-income state implementation. This request is highly consistent with the Bank s new strategy for engagement in India. The engagements with Assam, Mizoram, and Madhya Pradesh support this new direction. 37. The program objective complemented other Bank Operations in India specifically the 19 e-governance initiatives in different sectors such as education, health, urban and rural 9

20 development, irrigation, and social welfare. These efforts and the NeGP initiative would benefit from common service delivery policies, a supporting legislative framework, citizen and stakeholder consultations, shared ICT infrastructure, technology standards, technical assistance, monitoring and organized knowledge sharing networks. 38. The objectives of the DPL were developed based on an assessment of policy constraints and the overall progress of the implementation of e-governance at the central and state levels of government. Prior to the introduction of the DPL, the NeGP lacked a broad national policy framework to support coordination between central ministries as well as between the center and state-level institutions. This was particularly problematic due to the large scale nature and complexity of the NeGP initiative. To this effect, a programmatic DPL was chosen and introduced as the appropriate lending instrument to support upstream, cross-cutting policy actions designed to leverage impact and improve results in delivery of public services. Given the need for a NeGP policy framework, the DPL appeared to be well-suited to supporting the needs of the Government of India. 39. The DPL supported the Government s overall reform effort by developing a policy framework which included the following components: policy standards and technical frameworks; improving citizen participation; improving monitoring and evaluation; and supporting broadband and mobile platforms for improving the reach, quality and transparency of public services. 40. Despite the positive performance of the DPL, the GoI cancelled DPL II mainly because of changing government priorities related to the Single Borrower Limit (SBL). A letter dated February 7, 2011 from the Ministry of Finance to the World Bank provided an early indication that the Government preferred to maintain flexibility as it relates to the second operation of the DPL, mainly because of the SBL issue. The letter stated The triggers for the 2 nd DPL will be flexible so that there may be easy exit option for the recipient in case GOI does not agree for the 2 nd DPL. Therefore, it was not a complete surprise when, early in the period of DPL effectiveness, the Government indicated it was near to reaching the IBRD SBL. This realization facilitated DPL II cancellation, shifting the Bank s e-governance reform strategy away from central policy to one focused on implementation at state level, in particular in low-income states. As of January 2013, the Bank s non-sectoral e-governance efforts reflect this shift, evidenced by e-governance engagements and discussions with Assam, Mizoram, and Madhya Pradesh. 3.2 Achievement of Program Development Objectives 41. The Program Document describes the Program Development Objectives as follows: DPL I supports the government s objective of increasing access to online services by citizens in their locality. It will do this through supporting policy and institutional actions that place higher emphasis on coordination and increase outreach to citizens. To this end, the policy matrix was developed to provide a framework for assessing achievement of objectives. The policy matrix defined the targeted reform areas, targets and outcomes to be achieved. Utilizing this policy matrix, and the related guidance in the Program Document, the ICR team assessed performance in achieving objectives. As it relates to the policy matrix, the team used the following assumptions in its assessment: Status column reflects the status as of when the DPL was submitted to the board of the World Bank. Target column reflects the targets to be used to measure the performance of the first year operation of the DPL. The intent was to have the first year of the DPL operation 10

21 end in June 2012, and then to give a second year for reforms to take effect before measuring performance of the first operation in June End of Series Outcome and Indicator reflects the outcome and targets for the end of the DPL programmatic series. The series would have ended in June 2014, and performance of the programmatic DPL would have been measured at this time. Given the DPL closing date of June 2012, data reflecting June 2012 performance was considered to reflect actual program performance. (While the data provided by the GoI for the ICR analysis were dated September 2012, the GOI indicated that the September data were not significantly different than June 2012 data.) 42. Based upon an analysis of performance indicators included in the policy operation matrix, the DPL operation has demonstrated positive program performance in terms of achieving objectives. Of the twelve performance targets, half met or exceeded the End of Series Outcome and Indicator 2013/2014 targets, while the remaining six reflect a consistent and positive movement in the direction of outcome achievement and are related mainly to the scaling up of the activities started under the first year of the DPL. The positive results are particularly impressive given that these targets were designed to measure performance in June 2014, not See Results at a Glance Performance against End of Series in Annex 6 for an overview of this performance. 43. Of the six end of series outcomes and targets which are not fully met, positive progress is evident in all areas as reflected below: Broadband: The first year target of 15 million reflects the number of subscribers eligible to receive Internet-based connectivity. This target has been met. The second year target of 40 million subscribers assumes an expansion of e-services using mobile-based 3G services. Given India s 76% mobile penetration rate, relative to its 10% internet penetration rate, mobile-based Internet provides an enormous opportunity to connect directly with citizens. The 3G expansion was delayed due to irregularities in India s 3G spectrum auction process. However, these problems have been addressed, allowing 3G services to be expanded across the country over the next 2 years. This expansion will provide the infrastructure for a massive increase in mobile-based e-services, which will result in meeting the 40 million target. Service Access Points: In accordance with the National Telecom Policy, the Government of India has changed its approach to providing village-level access to public services for citizens. The policy aims to provide high speed and high quality broadband access to all village panchayats through a combination of technologies by the year 2014 and progressively to all villages and habitations by Instead of continuing to expand Service Access Points, the Government has decided to establish 150,000 Government Access Points (GAP) in panchayats in every village. To this end, the procurement of cabling connectivity to the panchayats is underway. Both SAPs and GAPs will provide citizen access to public services at the village level, meeting the anticipated 250,000 target of SAP/GAPs. User Participation: DIT has announced a new citizen engagement policy, and has recruited consultants to assess program impact in order to ensure that NeGP is having a positive impact on citizens. BPR: DeitY has issued a new policy on Business Process Re-engineering which will increase substantially the number of BPRs conducted under the NeGP. The policy (i) 11

22 requires all implementing agencies which are requesting NeGP funding to conduct BPRs for their e-services processes, and (ii) establishes a BPR cell to provide TA and guidance to central and state departments which are conducting BPRs as a part of NeGP modernization. The policy makes a critical link between funding and BPRs, and this will undoubtedly increase BPR activity associated with NeGP implementation. Reorientation program: State e-governance Mission Teams (SeMTs) have been established in all states and one of the priorities of these teams is to plan and implement reorientation programs for public officials. In addition, DeitY has strengthened its efforts to coordinate and monitor state training efforts related to this objective. Number of e-services verifying users: Two factors will dramatically increase the number of e-services verifying users: (i) a National e-authentication Framework which has now been approved and put in place, and (ii) the UID and NPR initiatives which are being roll-out across the country. The increase in the number of e-services verifying users is expected to be evident over the next year or two. 44. The positive performance reveals that the Government of India is highly engaged in managing the growth of a complex national program which is broadening citizen access to public services at the village level. The ICR Team believes that the achievement of half of the end of series outcome targets, and the positive direction toward achieving the remaining targets, reflects a strong performance of the government to manage and implement the NeGP. See Annex 7 for a diagram displaying outcome achievement. 45. Performance is even stronger relative to first year 2012/2013 targets. In this case, nine of the twelve performance targets were exceeded and three were partially met. Since the effective target date is June 2013, and the actual program performance data provided by the government reflects a date of June 2012, it is quite possible that the three partially unmet targets will be met by June 2013, resulting in all first-year targets being met. 46. As is reflected in Results at a Glance for in Annex 6, the 2012/2013 targets were met in five of the eight reform areas by the time of loan closing in June It is possible that additional reform areas will meet the 2012/2013 target by June 2013 (the appropriate date of measurement). All reform areas under Pillar I (reform areas 1.1, 1.2, and 1.3) reflected strong performance in terms of achievement of the targets. In fact, most of Pillar I reform areas have exceeded targets, which were designed to measure performance at the end of the series in June Concerning reform areas under Pillar II (reform areas 2.1 to 2.5), over half of the reform areas exceeded the targets, and the possibility remains that others will be added to this as the program continues to progress up to June The ICR Team believes that an appropriate assessment of performance would focus on both End of Series Outcomes and first year targets for two reasons: The first year indicators ( Target ) were designed to measure progress of the first operation in June Given that the operation had only one year of effectiveness, use of the first year indicators would maintain consistency between actual operation and evaluation. The cancellation of DPL II was not the result of a lack of commitment of the Government of India to governance or the National e-governance Plan. Instead, DPL II was cancelled because of financial constraints related to the Single Borrower Limit, and the resulting decision by the Government to fund the NeGP on its own. In fact, after DPL II was 12

23 cancelled, the Government launched a massive initiative to strengthen the NeGP by accelerating the delivery of government services in villages a $3.6 billion program to provide broadband connectivity to 250,000 villages. The investment clearly indicates that the GoI has a high level of commitment to the NeGP and the objectives of the DPL. In sum, the DPL II cancellation related to SBL complexities and Government decisions to manage this problem. In no way or form did the cancellation reflect weak government commitment to the e-governance national agenda. 3.3 Justification of Overall Outcome Rating Rating: Moderately Satisfactory 48. Outcome measurement was challenging as the outcome targets were designed for a 2014 DPL closing. The challenge related to the discontinuation of the programmatic DPL series. The DPL closed in June 2012 after the first operation a full two years ahead of the originally designed end of series. To address this complexity, the ICR team assessed performance against targets for both end of series and To secure a better understanding of NeGP outcomes, the ICR team also examined findings of third party impact assessments of NeGP. 49. While the entire program was not completed in a manner that was envisioned in the Program Document, the evidence collected by the ICR team suggests that the direction in which the reform areas are progressing for achieving the end of series outcomes is positive. An assessment of end of series outcomes and targets and the first year 2012/13 performance targets reflects significant, ongoing achievement. Half of the performance indicators have exceeded the targets almost two years earlier than expected and the remaining indicators reflect positive progress. Relative to the indicators, nine of the twelve indicators have exceeded the target, and likelihood of all targets being achieved by the June 2013 measurement date remains a strong possibility. Performance is particularly strong under Pillar I, which relates to institutional and policy coordination. 50. The decision of the Government to fund the NeGP without the Bank s second phase of financing should not jeopardize the positive performance of the first year operation. While the Bank often views program cancellation as a lack of government commitment to a given development agenda, this is not the case with this DPL. In this case, the Government was managing Single Borrower Limit challenges. 51. It is important to recognize that the Government s decision to cancel DPL II was accompanied by a major government investment of $3.6 billion to expand the effectiveness and reach of the NeGP. This investment is an important sign of the depth of government support for the NeGP. 52. Third party impact evaluations were sought to obtain additional evidence of the degree to which the NeGP is achieving outcomes similar to those in the policy matrix; the evaluations indicate that the NeGP is contributing to significant improvements in service quality. These evaluations provide objective evidence about the outcome performance of the NeGP. Based upon the national level Impact Assessment on e-governance Projects, the evaluation found that significant improvements in service quality were evident with NeGP programs which have undertaken a thorough business process reengineering and automation reform. For the state level assessment, improvement in service quality was evident in a number of areas including the number of trips required to secure service, waiting time, frequency of bribe payments, amount of bribe, and citizen perception of service quality. While the evidence indicated that program outcomes vary between states, there was clear evidence related to service quality improvement in numerous states. 13

24 Improvement in service quality is a critical outcome of the policy matrix. See Annex 8 for a summary of findings of the Impact Assessment. (The Impact Assessment on e-governance Projects dated 2008 was conducted by the Indian Institute of Management for the DeitY. A synopsis of the assessment can be found at: The DeitY is currently finalizing a more recent impact assessment and e-readiness study of the NeGP. To our knowledge, these are the only comprehensive impact assessments which have been conducted on the NeGP.) 53. In overall terms, based upon the positive performance related to achievement of targets for both end of series and , and third party evidence of outcome achievement in the impact evaluations, a Moderately Satisfactory rating seems appropriate. 3.4 Overarching Themes, Other Outcomes and Impacts (a) Poverty Impacts, Gender Aspects, and Social Development 54. The implementation of e-services at the state level appears to be resulting in cost savings and efficiency improvement, and the village level focus of the NeGP attempts to ensure that the poor benefit from the program. Numerous examples were provided in a workshop with NeGP officials from Rajasthan, Assam, and Mizoram. A strong state example is the e-governance program in Madhya Pradesh (MP), one of the low-income states. The MP government has implemented an e-procurement system for all government departments and state public service units. This system has engaged 90 departments and involved more than 38,812 online procurements totaling Rs. 7,645,600,000. The government of MP has documented the reduction in the number of procurement transactions, administrative processing, and other inefficiencies and leakages which were linked to manual processes often involving personal discretion. The system has improved transparency and governance processes, benefiting small business players. MP has also established Common Service Centers, called MP Online and Lok Seva Kendra, which are providing public services (related to social protection, pension, birth and caste, and others) and private financial services. CSCs aim to reduce costs of citizens associated with securing public services. These costs include transport costs as well as unofficial payments which may accompany service requests. A final example of MP s e-governance program is the computerization of service delivery associated with the Food and Supplies Department. MP s e-upaarjan (computerization of wheat procurement) provides farmers with a number of services like procurement forecasting, real time alerts, and other information tailored to specific needs of farmers. This system has resulted in economic and social improvements to registered farmers. (b) Institutional Change/Strengthening 55. The NeGP has built significant capacity at the central and state levels of government to coordinate and implement the e-governance initiative. The NeGP has created new organizations and strengthened existing ones, at both central and state levels. The Apex Committees, both at the central and state levels, have been strengthened to enhance their role in policy-making and crossgovernment coordination required to make NeGP sustainable and successful. State e-governance Mission Teams (SeMTs) have been developed in all states, creating a capable and qualified group of e-governance professionals in the public workforce. The National e-governance Division (NeGD) has been established to provide the program management of NeGP. In addition, the CIO program is 14

25 being implemented and aims to put in place a cadre of professionals who understand the use of IT for governance reforms and transformation across a federal/ state government. Other efforts are underway to expand e-governance capacity at all levels. Some of these initiatives include: a National Skills Development Corporation which has developed a specially designed curriculum for training of government officials on IT, IT competency tests for civil service induction, and the establishment of an IT cadre in the civil services. 56. Many states are developing sustainable institutions needed to improve service delivery using electronic means. Evidence in larger and more advanced states, like Andhra Pradesh, indicates that a number of these institutions are Public-Private Partnerships, designed to leverage private sector skills and entrepreneurial capacity in order to create a technically-savvy, serviceoriented public sector 57. Institutional strengthening has also resulted in the creation of e-governance teams in all 35 states and UTs. These teams are developing the IT infrastructure and change management processes to improve efficiency and access associated with service delivery mechanisms, for sectors and functions. The growth and strengthening of these institutions is likely to continue for another 10 years, as horizontal and vertical connectivity improves, and as each government program at the state level undertakes a reform process associated with digital re-engineering. The NeGP has been a critical part of creating this state-level institutional infrastructure. (c) Other Unintended Outcomes and Impacts (positive or negative, if any) N/A 3.5 Summary of Findings of Beneficiary Survey and/or Stakeholder Workshops N/A 4. Assessment of Risk to Development Outcome Rating: Moderate 58. The risk of not achieving the development outcomes of increased coordination and outreach to citizens is moderate. Multiple factors contribute to this rating. 59. There is substantial political commitment of the GoI to make NeGP implementation a success. The $9 billion in federal funding provided for the program to date reflects the importance of the NeGP in terms of government priorities. The likelihood of a major change in budgetary support does not appear to be significant. (The NeGP budget supports policy development; establishment of IT core infrastructure such as SWAN, NICNET, SDCs, etc.; establishment of support infrastructure (including CSC, e-portal, e-district, and others); provision for technical assistance to support state level implementation; research and development; human resource development; training and change management, in particular in lagging states; and awareness, assessment, monitoring and evaluation of the overall NeGP implementation and e-services delivery programs.) 60. The governance structures which have been established at the central and state levels through the NeGP appear to be firmly rooted, and cannot be dismantled easily. Many states are 15

26 using sophisticated PPP structures to manage various elements of their NeGP. These are evolving to have an extensive and deep-seeded presence in the service delivery landscape. The presence of the PPPs creates new and additional stakeholders which will support ongoing NeGP efforts. These state institutions are likely to continue to play a critical role in connecting the citizen with the state and in overcoming state-specific obstacles for service delivery improvement. 61. The Electronic Service Delivery (ESD) bill will provide an important legal umbrella for the national delivery of e-services throughout the country. As is evident in the policy matrix, the progress of this bill is promising, with most policy experts providing a positive outlook for passage of the legislation in The Electronic Service Delivery bill will put in place more rigorous measures to implement e-services, including establishment of a 6-month timeframe for all departments to define a Citizens Charter which notifies citizens of services to be provided electronically. An additional timeframe is provided which requires that all services are to be provided electronically within 5 years. In sum, the ESD bill increases the requirements and commitment of the Government of India to promote e-governance implementation. 62. Nevertheless, Section F of the Program Document identified two key risk areas which remain pertinent to achievement of outcomes: Actions agreed under Pillar II, particularly related to increased participation of users and service orientation of public officials, could have results below what was expected in initial program design, as citizen-centric service delivery has not yet been mainstreamed in the public service and the benefits are perceived only after a few years. NeGP s decentralized implementation arrangements make it difficult for any one department, such as DeitY, to coordinate across such a wide range of central and state implementing agencies, contributing to the difficulty of MMP implementation, which remains one of the most important, but weakest, areas of NeGP progress. Annex 5 indicates that numerous MMPs are not yet operational, reflecting a continued lag in implementation. Comments provided to the Regional Operations Committee in February 2011 indicate that the 27 Mission Mode Projects were designed to be implemented from yet, in 2011, it was clear that the MMPs were behind schedule. Numerous program stakeholders confirmed that the delays with MMP implementation remain one of the largest challenges of the program. 63. States are now faced with implementing at least five service delivery improvement initiatives, adding to implementation complexity and risk. The wave of service delivery improvement hitting India cannot be understated. Extensive coordination will be needed at central and state levels to manage the integration of these efforts to ensure successful implementation. Additional capacity will be needed, and systems related to intra-government and inter-governmental coordination will require strengthening. Furthermore, the change management element of these initiatives includes long-term behavior change components, increasing rick associated with achieving outcomes. 64. On balance, a rating of Moderate was deemed to be an appropriate rating for the level of risk to achieving outcomes. 5. Assessment of Bank and Borrower Performance 5.1 Bank Performance (a) Bank Performance in Ensuring Quality at Entry 16

27 Rating: Moderately Satisfactory 65. e-delivery of Public Services was one of the first DPLs offered to the GoI for public sector management and institutional reform. Following a six year SIL preparation engagement with GoI for the e-bharat program, the Bank leveraged its relationships, knowledge and expertise to help the GoI design an e-governance investment centered on transforming the way ordinary citizens access public services. During the SIL preparation, extensive and in-depth technical and advisory inputs were provided by the Bank to DeitY. (See Annex 9). The e-delivery of Public Services DPL, that replaced the e-bharat SIL, was prepared with an emphasis on governance reforms addressing issues in service delivery, process re-engineering and citizen participation in design to maximize outcomes and benefits from NeGP. The Bank s prior engagement through the SIL, and its strength of relationships with the GoI, allowed the team to rapidly prepare and execute the DPL. 66. In preparing the DPL, which contributed US$ 150 million to the GoI s US$ 9 billion investment in the National e-governance Plan (NeGP), the Bank brought to the table valuable technical assistance to identify policy reform areas, institutional arrangements and program implementation modalities. These modalities were then employed by the GoI to implement the broader NeGP program. DeitY indicated in a letter that the DPL preparation reflected a quality preparation process which involved the development of the eight policy reform areas which became the focus of assistance from the World Bank. 67. The Bank made important contributions to the NeGP s monitoring and evaluation system, which provides timely information about various aspects of the program. The Bank team elevated the importance of M&E, providing critical technical inputs to support the development of the system. M&E became a key reform area in the policy matrix. (See Annex 5 for reports generated by the M&E system.) 68. The Bank engagement provided an opportunity for the Bank to participate in national policy related to the NeGP. Given that the NeGP s focus is on improving the access, efficiency and quality of service delivery, it was important for the Bank to position itself so that it could contribute to this national initiative. The engagement also created an opportunity for the Bank to learn from India s NeGP experiment and share relevant lessons with other countries which are modernizing their service delivery systems. 69. The Bank developed an in-depth options document for the Government of India to determine the appropriate instrument for engagement. A document titled Choice of Bank Instrument: Response to GoI s Request for Support to India s National e-governance Plan was prepared to serve as a basis for Government decision-making and instrument selection associated with this operation. This document provided a thorough basis for the government s decision to secure Bank financing through a DPL. While most relevant government officials agreed that a DPL was the appropriate instrument for support, a discussion at DEA in January 2013 indicated that certain GoI senior officials continued to have questions about the effectiveness of development impact associated with the DPL instrument. 70. There were limitations with the project design process. The brief preparation period may not have allowed enough time to vet questions and concerns about the suitability of the DPL instrument. While the Bank played an important convening role in terms of framing central e- governance policy, additional efforts could have been made to enhance central coordination 17

28 of state implementation activities related to the numerous service delivery improvement initiatives. Integration of these efforts remains a challenge. Citizen feedback mechanisms could have been used to strengthen the outcome measurement methodology. Citizen feedback is an important means of measuring whether service access, efficiency and quality are being improved, yet this approach was not included in the policy matrix. 71. On balance, while improvement could have been made during the entry process, the overall performance of the Bank at Entry was relatively positive, and merits a rating of Moderately Satisfactory. (b) Quality of Supervision Rating: Moderately Satisfactory 72. The Bank s supervision team managed a highly complex supervisory environment in a manner which paved the way for long-term Bank e-governance engagement in low-income states. The combination of SBL restrictions, late disbursement, and DPL II cancellation created a challenging supervisory climate from the start. The Bank team should be credited with managing through these difficulties in a manner which resulted in a strategic shift from central level support to engagement in low-income states, a key element of the new Country Partnership Strategy. 73. While effort was made to retain DPL II, eventually the team refocused on substantive objectives, laying the foundation for Bank engagements in service delivery reform in Assam, Mizoram, and Madhya Pradesh. Many low-income states needed technical advice and guidance to implement NeGP, along with a range of other service delivery improvement efforts (such as RTPS, Performance Management, Grievance Redress, and RTI). To this end, supervision staff conducted 7 missions to low-income states of Assam, Tripura, Bihar, and Mizoram during the first half of These missions, and related consultations, resulted in the current e-governance in the Northeast NLTA, which is providing an analytical basis for a $49 million investment lending request in Assam. Madhya Pradesh has also submitted a request for NLTA tied to a $55 million investment loan and Mizoram has submitted a $13 million investment lending request which is under review by DEA. 74. A January 2012 supervision mission provided a candid assessment of progress made in meeting Phase 2 prior actions, as well as the challenges encountered during the implementation of the policy reforms. A detailed, full-team supervision was undertaken in January, 2012 (Jan 16-27, 2012) which included visits to multiple states. As part of the supervision, each policy area was reviewed in detail for the current status, and recommendations were provided for corrective actions. The Bank mission identified the problems of implementation at state level and need for additional support. The supervisory mission concluded that two out of eight policy actions required additional attention: (i) facilitation of increased participation of users in design and evaluation of e-governance projects, and (ii) implementation of the process re-engineering guidelines and common platforms for e-governance projects. The mission was conducted at the appropriate six-month mark of the period of effectiveness. 75. Numerous policy inputs and technical supports were provided to the Government of India during DPL effectiveness and many of these were incorporated into the operations of the NeGP. Of the 29 policy and technical inputs, 13 were provided during the DPL period of effectiveness; many played a valuable role in developing the NeGP. DeitY looked to the Bank as a valued development partner, seeking policy advice and technical support to develop the program for 18

29 national implementation. One of the project TTLs played a critical support role to the client, providing ad hoc advice as needed. The policy inputs, which supported directly the DPL objectives, are listed below. Policy Input/Support Reform Area Supported 1 WB's Policy Notes - on all the key policy areas All Reform Areas #1.1 - #2.5 2 Bank's Note on suggestions for ESD Bill Reform Area #2.4 3 Framework for Citizens Engagement Reform Area #2.2 4 Inputs on NeGP M&E Framework Reform Area #1.3 5 WB's workshop on m-governance; first Draft on Mobile Governance Reform Area #2.1 6 Bank's review comments on the Capacity Building Scheme Reform Area #2.3 7 Communication and Awareness Strategy Reform Area # Results Framework All Reform Areas # Review note on Standards for e-government Reform Area# South -South e-gov knowledge sharing All Reform Areas # e-panchayati Raj initiative All Reform Areas # Discussions on the National IT Policy All Reform Areas # Meetings on UID / Aadhaar All Reform Areas # Supervision was affected by broader financial challenges related to the Government of India s portfolio with the World Bank, namely the possibility of reaching the Single Borrower Limit. The SBL issue forced the supervisory dialogue into a concentrated discussion about continuation of DPL II, diminishing Bank attention to more substantive e-governance concerns. While the lack of substantive focus on DPL objectives was weak in this period, it is substantially explained by the complexities of the SBL pressures. 77. While the team made notable effort to supervise the DPL in this challenging environment, the supervision could have been more proactive. Without the complexities of SBL pressures, a number of actions could have been taken to enhance program outcomes. They include: (i) convening DeitY and government ministries to advance MMP implementation and integration of service delivery improvement, (ii) supporting DeitY in the development of a targeted strategy for NeGP advancement in low-income states; and (iii) institutionalizing a system for tracking and reporting progress in achieving DPL targets and outcomes. In addition, while not required, an ISR might have provided additional avenues to engage with Government during this challenging time. 78. The operational environment was further challenged by staffing changes. Staffing changes, which are common procedures at the Bank, added to the complexity of remaining focused on the e-governance content of the DPL. (c) Justification of Rating for Overall Bank Performance Rating: Moderately Satisfactory 79. Given that the Quality at Entry is Moderately Satisfactory and the Quality of Supervision is Moderately Satisfactory, the overall rating for the Bank s Performance is Moderately Satisfactory. 5.2 Borrower Performance (a) Government Performance Rating: Moderately Satisfactory 19

30 80. Through the execution of the NeGP, the Government of India has set a benchmark for other similarly large, diverse and populous emerging central governments seeking to deliver decentralized public services to citizens in the digital era of governance. The GoI has marshaled unprecedented financial and institutional resources totaling $9 billion to scale up and implement the NeGP across the sub-continent, putting in place a critical enabling environment for rolling out reforms. Taking into account the additional $3.6 billion effort of the Government to establish broadband connectivity to 250,000 villages, the overall investment in creating a citizen-centered service delivery system exceeds $12.6 billion. The India experience, particularly related to NeGP governance arrangements, would be valuable to share with other countries, through knowledge exchanges and lessons learned. Due to the compelling progress of the NeGP, members of the ICR Team have already shared this experience with their respective counterparts in Indonesia, Pakistan, and Nepal. The NeGP governance structures ensure a remarkable level of quality and guidance to the project, as they are staffed by seasoned and knowledgeable officers. 81. Acting together, a host of central and local government institutions have given wings to a fledgling national e-governance system, enabling a beneficial environment for achieving the outcome of citizen centered e-delivery of public services. Numerous central and state entities have been created or expanded to support the commitment to achieve a citizen-centered service delivery system. With the Prime Minister s office in the lead, APEX Committees, High Powered Committees, and Project Standing Committees all support a central decision-making structure which oversees policy for the initiative. The Planning Commission allocates funds for NeGP through Plan and Nonplan budgetary provisions. The Department of Administrative Reforms & Public Grievances (DAR&PG) is responsible for process re-engineering, change management and promoting initiatives for human resource development, as well as training and awareness building. Line ministries/departments have taken ownership of the MMP, conceptualizing and implementing the project. At the state level, the APEX structure has also been replicated, headed by the Chief Secretary. SeMTs have been created to provide tech-savvy skills and capacity to implementation. PPP partners and other stakeholders are playing a key role in ensuring that the NeGP model benefits from private sector entrepreneurialism and sustainability. 82. Nevertheless, the success of the NeGP lies in integrating service delivery improvement initiatives across the country and in quickly bringing MMPs online. Integration to other reform initiatives such as RTI, RTPS, Grievance Redress, and Results Framework Documents will be a critical part of establishing an effective citizen centered e-delivery of public services. While efforts have been made to integrate NeGP with Grievance Redress and RTI, the integration effort needs enforcement and coordination at the state level. The central government is in a key position to provide guidance and support for this integration, but this would require a well-coordinated approach crossing multiple departments and functions, and an ambitious engagement across 35 states and UTs. In addition, MMP implementation continues to lag, requiring a reenergized effort to determine what is needed to make progress in this important area. On its own, the implementing agency (DeitY) cannot convene and coordinate institutions at such levels to resolve issues in a timely manner as the program matures. 20

31 (b) Implementing Agency or Agencies Performance Rating: Satisfactory 83. The implementing agency s performance is rated as Satisfactory. DeitY has played a consistent and critical role as an enabler of change and in pressing for completion of actions in the DPL policy matrix. To reach its targets, DeitY deployed dedicated and competent staff to design, develop and accelerate the implementation of NeGP at the central level (including NeGD and NeGP consultants from the private sector) and the state level (SeMT). 84. Elevated commitment and the capacity of DeitY (at the center) and SeMT (at the state) provided much needed impetus for service delivery transformation across the Indian subcontinent. Although these institutions are relatively new, having been in existence a little over five years, they have introduced a new wave of talent and skills to the public sector across India. SeMTs are typically staffed by tech savvy and reform-minded professionals who are adept at managing the complexities of IT and governance reform. DeitY and the SeMTs have stepped up to the enormous challenge of modernizing government processes and they are doing so in a manner which puts citizens at the heart of service delivery. Over the next ten years, these institutions are likely to play a critical role in supply side efforts to ensure that the government meets citizen needs. 85. DeitY has established an adequate system for NeGP Monitoring and Evaluation (M/E). This system monitors the implementation progress of State Data Centers, State Wide area Networks, Common Service Centers, National Service Delivery Gateway, E-District and Capacity Building at the State Level. Also, the system tracks the progress of MMP implementation at the central, state, and integrated levels (see Annex 5). While the ICR Team does not have information about whether the M&E reports have improved decision-making by the central government or DeitY, the reporting has provided DeitY with comprehensive and beneficial information about the status of NeGP implementation. (c) Justification of Rating for Overall Borrower Performance Rating: Moderately Satisfactory 86. Borrower s performance is rated Moderately Satisfactory. The rating reflects: (i) a relatively good performance of the GoI in providing a supportive enabling environment and resources to enhance NeGP policy and implementation, and (ii) a positive performance of DeitY to ensure progress of DPL objectives, despite a slow disbursement of funds. 6. Lessons Learned 87. India s NeGP is a useful governance-oriented model for countries modernizing their service delivery processes. The citizen-centered approach of the NeGP is a vibrant and relevant model for countries or sub-national governments which are designing or implementing ICT reform programs. The approach is particularly valuable for governments also aiming to improve transparency and accountability and reduce corruption. India s approach goes far beyond a narrow ICT orientation by placing citizen access and service delivery efficiency at the heart of the reform. This governance-oriented approach to ICT modernization is a strong model to share with other countries. In fact, almost all members of the ICR Team were so impressed by India s NeGP that they have shared the model with other country counterparts in Indonesia, Pakistan, and Nepal. 88. An innovative and creative approach is needed for engaging with a sophisticated client like the central Government of India. Traditional Bank instruments may not work well with a 21

32 highly advanced client which is managing enormous policy and programmatic complexity. Throughout the eight year engagement related to this DPL, there is evidence that all Bank instruments (SIL, DPL, and TA) were of limited interest to the central Government of India. One explanation for the extensive volatility of the 8-year engagement is the limited compatibility between Bank instruments and the complexity of the GoI operating environment. Some consideration should be given to alternative, more creative approaches and instruments for engaging with the central Government of India, particularly in sectors which evidence volatility with engagements. 89. Low-income state engagement is well-aligned with the Bank s poverty and shared prosperity mission; in the area of e-governance, it is also a strategy which reflects a good fit between client needs and the Bank s traditional products and services. The 8-year volatility associated with SIL and DPL engagements with the central GoI have led the Bank to shift its e- governance strategy to low-income states a strategy which seems to be working given the smoothness in development of the e-governance in the Northeast NLTA and the progression of multiple financing requests from Assam, Mizoram, and Madhya Pradesh. This new strategy recognizes the evident compatibility between the needs and practices of low-income state clients and traditional Bank practices and products. 90. Engagement with the Government is most beneficial when it remains focused on substance and flexibility. In the context of this DPL, the Bank s dialogue with Government was affected by SBL pressures, diminishing focus on the substance of the governance program. This resulted in a lost opportunity to leverage fully the one year DPL. Eventually, the Bank re-engaged appropriately with Government, shifting its governance strategy to one characterized by low-income state implementation. The Bank s current e-governance engagements in low-income states reflect the benefits of remaining focused on substance and being adaptable in terms of strategy. 91. Due to the critical linkage between governance and citizens (in particular poor and marginalized citizens), governance projects should adopt a standard practice of using outcome indicators which are based on user/citizen feedback mechanisms to gauge progress. Design of strong outcome indicators for a DPL is challenging because of the long-term, conceptual nature of outcomes. Design of central level indicators is also complicated by long results chains and time lags. Nevertheless, in service delivery projects, citizens and users are often the best gauge of progress. E-governance projects which utilize ICT as a means of implementing reforms should be in the forefront of showcasing low-cost accessible technology usage to measure user satisfaction related to service delivery. 92. A structured and strategic approach to risk management should be considered when programmatic interruption is a significant possibility. In the case of the DPL, the evident risk of program interruption could have been managed in a more comprehensive, timely, and strategic manner by both the project team and the CMU. In such cases, an intensive supervision process could be established to maintain focus on program content, to systematize dialogue with Government, and to promote flexibility as the engagement evolves. 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners (a) Borrower/Implementing agencies 93. Comments received from DeitY. An updated policy matrix, which reflects reform area performance as of June 2012, and a narrative update for each reform area has been provided by DeitY. This information is included in Annex 10. No changes have been made to these documents. 22

33 (b) Cofinanciers N/A (c) Other partners and stakeholders (e.g. NGOs/private sector/civil society) N/A 23

34 Annex 1: Bank Lending and Implementation Support/Supervision Processes (a) Task Team members Names Title Unit Responsibility/ Specialty Lending Ranjana Mukherjee Senior Public Sector Specialist SASGP TTL Shashank Ojha Senior e-government Specialist TWICT Co-TTL Mohan Gopalakrishnan Senior Financial Management Specialist SARFM Team Member Muthukumara Mani Senior Environmental Economist SASDI Team Member Tenzin Norbhu Senior ICT Policy Specialist TWICT Team Member Ananya Basu Senior Economist SASEP Team Member Ulrich Bartsch Senior Economist SASEP Team Member Vikram Raghavan Senior Counsel LEGES Team Member Preeti Arora Senior Economist SARDE Team Member Guy Janssen Consultant SASGP Team Member Eduardo Talero Consultant SASGP Team Member Muhammad Shafiq Program Assistant SASGP Team Member Sapna John Program Assistant SASGP Team Member Supervision Junghun Cho Senior Public Sector Specialist SASGP TTL Shashank Ojha Senior e-government Specialist TWICT Co-TTL Tenzin Norbhu Senior ICT Policy Specialist TWICT Team Member Guy Janssen Consultant SASGP Team Member Eduardo Talero Consultant SASGP Team Member Sapna John Program Assistant SASGP Team Member (b) Staff Time and Cost Staff Time and Cost (Bank Budget Only) Stage USD Thousands (including No. of staff weeks travel and consultant costs) Lending Supervision/ICR Total:

35 Annex 2: Examples of State Government MMPs STATE MMPS ANDHRA PRADESH National Land Record Management Program Road Transport Authority Crime and Criminal Tracking Network System Treasury Municipality E-District Commercial Taxes Gram Panchayat Employment Exchange RAJASTHAN E-District E-Job Application E-Mitra E-Procurement Commercial Taxes Municipality National Land Record Management Program Registration and Stamps Treasury Crime and Criminal Tracking Network System Road Transport Arogya Online E-Sugam E-Sanchar RSRTC online web based ticket LITES Monitoring of Government Court Cases MADHYA PRADESH E-District E-Court MP Online E-Procurement/Tender Land record E-Upaarjan Crime and Criminal Tracking Network System E-Treasury E-Jan Sunvai and E-Shiksha E-Governance and Service Delivery E-Correspondence and Management System 25

36 Reform Area DPL 1 Supported Reforms (Prior Actions are bolded) DPL 2 Supported Reforms and Indicative Triggers (2012/13) Annex 3: Policy Matrix Indicator Baseline Status Target Achievement or Status End-of-Series Outcome and Indicator Strengthen state level institutions in e-governance The government has developed a comprehensive policy for institutional strengthening program and has commenced its implementation by assisting state governments in preparing and implementing e- governance projects. Guidelines for PPPs in e-governance projects drafted and circulated for comments DIT establishes project development support fund and Expert Cell on PPPs for e- governance projects. The government has approved a policy for PPPs in e-governance projects and issued templates for model concession agreements Pillar I. Higher emphasis on coordination Number of e- 200 e-services at 500 e-services services at state level (0 e- (0 services in implementation services in less less advanced stage at state level advanced states) states) (56 e- (including number (11 e-services services through of e-services under through PPP PPP mode) implementation in mode) less advanced states and e-services in PPP mode at implementations stage) 1000 services (90 e-services in less advanced states) (130 e-services through PPP mode) 1776 e-services at state level and 225 e-services through PPP mode Outcome: Gap between leading and less advanced states reduced 1 Indicator: 1500 e- services (180 e-services in less advanced states) (227 e- services through PPP mode) 1.2 Development of technical standards for e-governance Government has adopted a policy for the use of open standards in e- governance. In consultation with relevant stakeholders, the government is developing appropriate technical Government has adopted technology standards including for interoperability and security. Government has adopted a framework for certifying systems compliance with Number of e- services offered through systems certified compliant with standards 0 e-services from certified systems 0 e-services from certified systems 75 e-services from certified systems 143 e-services from certified systems Outcome: Raised reliability and interoperability of government systems as a result of certified compliance with technical standards for e- 1 At the time of the creation of the Policy matrix, the term "less advance states" was used. At the time of the ICR, both the Government of India and the Bank use the term "low-income states". 26

37 Reform Area DPL 1 Supported Reforms (Prior Actions are bolded) DPL 2 Supported Reforms and Indicative Triggers (2012/13) Indicator Baseline Status Target Achievement or Status End-of-Series Outcome and Indicator Improve inter agency coordination and monitoring e- governance 2.1 Improve access to services by using the mobile platform while increasing the pace of internet penetration standards to implement the above-mentioned policy Inter-ministerial committee of senior officials has adopted a comprehensive framework for monitoring the implementation of the National e- Governance Plan The Telecom Regulatory Authority of India has submitted recommendations on National Broadband Plan to the government The government has formulated a policy to facilitate setting-up of 150,000 additional broadband-enabled service access points in panchayats The Government has approved technical standards. The government has begun utilizing the framework to improve monitoring and coordination of e- governance The government has approved the National Broadband Plan to establish broadband in all panchayats The government has adopted a policy to facilitate the setting up of additional 150,000 broadbandenabled service access points in panchayats The government has Number of e- services from projects with updated information in the Project Monitoring Information System 0 e-services monitored Pillar II. Increased reach out to citizens 8.77 million (end March 2010) Number of broadband connections Number of Service Access Points 80,000 0 e-services monitored 9.47 million (end of June 2010) 90, e-services monitored 15 million broadband connections 125, e-services monitored million broadband subscription (Sept 2012) 95,649 Common Services Center (CSC) rolled out with 80,733 connected CSCs (Sept 2012) governance. Indicator: 150 e-services from certified systems. Outcome: Enhanced decision making as a result of systematic monitoring Indicator: 250 e-services monitored. Outcome: Broadbandenabled service access points available in all panchayats and mobile platform used for effective delivery of e- services Indicator: 40 million broadbandenabled connections nationwide 27

38 Reform Area DPL 1 Supported Reforms (Prior Actions are bolded) DPL 2 Supported Reforms and Indicative Triggers (2012/13) Indicator Baseline Status Target Achievement or Status End-of-Series Outcome and Indicator Facilitate increased participation of users in design and evaluation of e- governance projects 2.3 Improve service orientation of government processes and officials adopted a policy framework for the delivery of basic financial services using mobile phones Government has strengthened its e- governance impact assessment strategy and has begun its implementation The government has circulated guidelines for social audit for e- governance projects to central government ministries/ departments, state governments, and DIT The government has finalized process reengineering guidelines, and identified common platforms and components for enabling uniformity in delivery of public adopted a policy for delivery of services on the mobile platform The government has adopted administrative guidelines that incorporate comprehensive stakeholder involvement and performance measurement. The government has begun project level implementation of the process reengineering guidelines and common platforms and components. Number of services delivered using mobile platform Number of e- services that have incorporated user participation in design and impact assessments Number of e- services delivered through reengineered processes 0 services on mobile platform 25 service on mobile platform 50 services on mobile platform 113 e-services operational under the PULL Services; 126 departments integrated and their services operational under the PUSH SMS channel 0 e-services 6 e-services 100 e-services 50 services under 5 projects would have incorporated user participation in design and impact assessment in the financial year 8 e-services 83 e-services 380 e-services 246 e-services delivered through re-engineered process; 200 more e-services to be accomplished by the end of the FY 250,000 broadbandenabled service access points established in panchayats 100 services are delivered using the mobile platform Outcome: Services improved in response to users feedback Indicator: 200 e-services Outcome: Many government processes reengineered, and appointed and elected officials 28

39 Reform Area DPL 1 Supported Reforms (Prior Actions are bolded) DPL 2 Supported Reforms and Indicative Triggers (2012/13) Indicator Baseline Status Target Achievement or Status End-of-Series Outcome and Indicator services. behavior oriented towards service delivery. The government has developed and begun implementation of a reorientation program for state government policy makers and officials in e- governance Empowered committee has approved an e- governance leadership program for State Government and Central Government CIOs Number of state whose officials have completed reorientation or leadership program None 3 States 10 states Number of states participated in the Specialized Training on e- Governance program is 20 Indicator: 752 e-services Outcome: Users can be verified by service delivery systems anywhere and anytime 2.4 E-services Delivery Law 2.5 Uniform and predictable Pursuant to Apex Committee s instructions, the DIT has begun formulating a draft ESD Bill and undertaken preliminary consultations with stakeholders The government has issued guidelines for A draft ESD Bill has been formulated and submitted to the Union Cabinet Government has begun verifying users of e- Stages toward approval of ESD Bill Number of e- services verifying Second Administrative Reform Commission recommends developing full legal framework for e-governance Apex Committee of NeGP approves preparation of legal framework and tasks DIT with this responsibility A draft ESD Bill has been formulated and submitted to the Union Cabinet EDS Bill was introduced in the Lok Sabha on 27 th December The Bill was referred to the Parliament Standing Committee on IT on 5 th January The Committee has tabled its Report to Lok Shaba (laid in Rajya Sabha) on 30 th August 2012 Indicator: 35 States/UTs None 13 e-services 25 e-services 18 services Outcome: Users can be 29

40 Reform Area DPL 1 Supported Reforms (Prior Actions are bolded) DPL 2 Supported Reforms and Indicative Triggers (2012/13) Indicator Baseline Status Target Achievement or Status End-of-Series Outcome and Indicator verification of e- service users use of digital signature in e-governance services users verified by service delivery systems anywhere and anytime Indicator: 50 e-services are verifying users. 30

41 Annex 4: Single Tranche DPL Prior Actions/Conditions and Status (1st Operation) Reform Area Prior Actions/Conditions Status Reform Area #1.1 Strengthen state level institutions in e- governance addressed: Reform Area #1.2 Development of technical standards for e-governance Reform Area #1.3 Improve Inter-agency coordination and monitoring of e- governance Reform Area #2.1 Improve access to services by using mobile platforms and increasing the pace of internet penetration Reform Area #2.2 Facilitate increased participation of users in design and evaluation of e-governance projects Reform Area #2.3 Improve service orientation of government processes and officials Reform Area #2.5 Uniform and predictable verification of e-service users The government has developed a comprehensive policy for institutional strengthening program and has commenced its implementation by assisting state governments in preparing and implementing e- governance projects Government has adopted a policy for the use of open standards in e-governance Inter-ministerial committee of senior officials has adopted a comprehensive framework for monitoring the implementation of the National e-governance Plan The Government has adopted a policy framework for the delivery of basic financial services using mobile phones Government has strengthened its e-governance impact assessment strategy and has begun its implementation The government has developed and begun implementation of a reorientation program for state government policy makers and officials in e-governance The government has issued guidelines for use of digital signature in e-governance The Government has developed a comprehensive policy for institutional strengthening program. As part of the initiative, three core areas have been Establishment of an Institutional Framework for State Level Strategic decision- making including setting-up of State e-governance Mission Teams (SeMT) Specialized Training Orientation Program for SeMTs and decision makers Establishment of a Central Capacity Building Management Cell for coordination and implementation of the Capacity Building Scheme Policy on Open Standards in e-governance has been adopted The Government has begun utilizing the M&E framework to improve monitoring and coordination of e-governance. This is being done through the following initiatives: Program Management Information System (PMIS); Monthly Progress Report; and Prime Minister Appointed Expert Group on NeGP A Framework for Mobile Governance ( has been developed and notified in the Gazette of India to facilitate use of the reach of mobile phones and related mobile-applications for easier and anytime access to public services, especially in rural areas DeitY has commissioned impact assessment studies of nearly 50 mature e- Governance projects. These studies underscore the importance of conducting baseline surveys of users of the existing system before conceptualising a new system to replace it. The impact is assessed on the following parameters: Service Outreach Cost of Accessing the Service Quality of service rendered; and Overall impact on governance Reorientation for State Government Policy Makers and Officials in e-governance: Chief Information Officer (CIO) training program for State Governments and Central Government ministries and departments e-governance champions - Two Pilot batches with 46 programmes completed and a National roll out with 8 batches has been proposed. A roadmap for future capacity building scheme has been initiated HR Policy: Prime Minister s Committee on NeGP approved the preparation of an HR Policy for taking NeGP forward which could become a part of the NeGP DeitY has conceptualized the e-pramaan: Framework for e-authentication that is intended to serve as the guiding document for all central and state ministries and departments for implementing an appropriate authentication model for delivery of their services while maintaining uniformity and consistency across various authentication mechanisms 31

42 Annex 4: Single Tranche DPL Triggers and Status (2 nd Operation) Reform Area Prior Actions/Conditions Status Reform Area #1.1 Strengthen state level institutions in e- governance The government has approved a policy for PPPs in e- governance projects and issued templates for model concession The government has issued a PPP policy in e-governance project. The policy has been approved. Templates for model concession agreements have also been issued and are available on the DeitY website. Reform Area #1.2 Development of technical standards for e-governance Reform Area #2.1 Improve access to services by using mobile platforms and increasing the pace of internet penetration Reform Area #2.2 Facilitate increased participation of users in design and evaluation of e-governance projects Reform Area #2.3 Improve service orientation of government processes and officials agreements Government has adopted technology standards including for interoperability and security. The government has approved the National Broadband Plan to establish broadband in all panchayats The government has adopted a policy to facilitate the setting up of additional 150,000 broadband-enabled service access points in panchayats The government has adopted administrative guidelines that incorporate comprehensive stakeholder involvement and performance measurement. The government has begun project level implementation of the process re-engineering guidelines and common platforms and components. Policy on interoperability and security in e-governance is in DeitY s Action Plan which is in the process of being adopted. The National Telecom Policy 2012 was issued in 2012 which promotes broadband connectivity to all panchayats by 2014 and to all villages and habitations by In addition, the Prime Minister s office has set up a $3.6 billion US project to provide broadband connectivity to 250,000 villages. The government has adopted administrative guidelines that incorporate comprehensive stakeholder involvement and performance measurement. These guidelines have been issued and are available on DeitY s website. The government has issued BPR It has been started and been included in the operational Guidelines, and is under implementation. Reform Area #2.4 E- service Delivery Law A draft ESD Bill has been formulated and submitted to the Union Cabinet The bill has been approved by the Cabinet and has gone to Parliament for discussion and passage. It is currently under revision in Parliament. 32

43 Annex 5: NeGP Monitoring Reports 33

44 Evaluation Table MCA 21 Income Tax Central Excise & Banking Insurance Passport, Immigration & Visa NPR UID Pensions India Post e-office (Pilot) e-trade (EDI) e-courts India Portal NSDG MMPs ----> Evaluation Criteria Central Integrated 1 Conformity Stake holder Consultation Services &SL e-biz(pilot) e-procurement Police CCTNS Commercial Taxes e-district (Pilot) e-municipality BPR NR NR Negp Guidelines (Dedicated Project Team, Strategic Control, Business Continuity etc.) NR NA Integration, Scope Business Model NR NR NR NR NR NR NR NR Continous enhancement NR NR NR NR NR NR NR NR Common Infrastucture NA NA NA NA NA NR NR NA NA NA NA NR NA NR NR 2 Timelines Milestone planning & Monitoring Physical Targets NR NR Financial Targets NR NR NR NR NR 3 Operations Services %age online Coverage/Accessibility Off-take Satisfaction Index NR NR NA NR Feedback Mechanism NA NR Extent of Transformation Industry Initiative Industry Initiative NA Not Operational - NR Interoperability NR NR NR NR NR Sustainability NR NR NR NR NR NR NR NR Not Operational - NR NR NR Not Operational - NR NA NR Not Operational - NR NR NA Not Operational - NR Road Transport Treasuries NLRMP State Reports not received Adequate information is not avalable - NR Land Records (Ph-I) NR Agriculture e-panchayat Not Operational - NR Employment Exchange NA Overall NR Legend Post Implementation A - Good Implementation B - Satisfactory Design & Development Needs Attention NR Not Rated NA Not Applicable *Three new MMPs (PDS, Health and Education) and Land Records (NLRMP) have not been categorized. ** Core Infrastructure Projects (SDC, SWAN and CSC) have not been categorized. 34

45 MMP Name Project Status Timelines Approval Status Approved Start Date Approved Amount Approving Authority Cabinet Approval Date Financial Progress ( INR Crores) Conformity to NeGP Budgeted Amount ( ) 2.82 Dedicated Project Team Quality/Security Audit Yes Yes Central MMP Project Phase Post Implementation Target Date Project Status Operational Time Period 2 Years No of Services G2C G2B G2G Total No of Operational Services Released Amount ( ) 0.26 Strategic Control Financial Provision in XI Five Year Plan Business Continuity Yes e-governance Standards Integration with NSDG/SSDG No Not at present KEY OBJECTIVES The MMP aims at improving tax-payer services, transparency, accountability and efficiency in the indirect tax administration in India. The project has automated all major processes in Central Excise and Service Tax through a web-based and workflow-based system. Facilitating the process of indirect taxation for the industry and service providers PRESENT STATUS (May 31, 2012) Wef all registrations are mandatorily to be done through ACES. Wef all Service tax and Excise returns are to mandatorily be filed through ACES. Data pertaining to the use of registration and return module in ACES is as under: o Central Excise Registration Applications o Central Excise Returns o Service Tax Registration Applications o Service Tax Returns o Claims and Intimations The usage of ACES website ( as on are as under o Number of Unique visitors to ACES Website 1.13 Crores 35

46 o No. of visits to ACES website 1.79 Crores o No. of Pages opened in ACES Website Crores o No. of hits to ACES Website Crores Approx. 20 lakhs Registered assesses and approx. 24,000 Departmental officers are covered by these services. SERVICES Service Type Delivery Mode Status 1. e- Registration of Service Tax and Central Excise Assesses G2B Online Operational 2. Facility for e-filing of all Returns (including Central Excise Returns and Service Tax Returns) G2B Online Operational 3. Risk Management System to reduce turnaround time and cost for Cargo handling G2B Online Operational 4. Electronic messaging with custodians and other agencies concerned with cargo clearance G2B Online Operational 5. Electronic messaging with banks for collection of duties and disbursal of duty drawbacks G2B Online Operational 6. Electronic Processing of Declarations (ON FCFS Basis) G2B Online Operational 7. Automated Clearance of Courier Consignments G2B Online Operational 8. e-payment of Customs Duties G2B Online Operational 36

47 Annex 6: Results at a Glance Performance against End of Series 37

48 Annex 6: Results at a Glance Performance against First Year Targets (2012/2013) 38

49 Annex 7: Overall Program Outcome Achievement REFORM AREA 1.1: REDUCE THE GAP BETWEEN LEADING AND LESS ADVANCED STATES ACHIEVEMENT OF OUTCOME: With 1776 total e-services, 237 of which are in less advanced states, targets for 2012/2013 and End of Series 2013/2014 have been met. Good progress is being made in reducing the gap between advanced and less advanced states. REFORM AREA 1.2: RAISE RELIABILITY & INTEROPERABILITY OF GOVT SYSTEMS AS A RESULT OF CERTIFIED COMPLIANCE ACHIEVEMENT OF OUTCOME: Actual performance data for June 2012 indicated that over 143 e-services were provided using certified systems, exceeding targets ( 75 eservices) and End of Series 2013/2014 targets (159 eservices), reflecting a marked improvement in achieving the outcome of raising reliability and interoperability of government systems. REFORM AREA 1.3: ENHANCE DECISION- MAKING AS A RESULT OF SYSTEMATIC MONITORING ACHIEVEMENT OF OUTCOME: The number of monitored systems increased dramatically from baseline to June 2012, from 0 to 246 monitored services, exceeding the target of 124 services monitored and essentially meeting the End of Series 2013/2014 target of 250 services. REFORM AREA 2.1: BROADBAND ACCESS SERVICE POINTS IN ALL PANCHAYATS & MOBILE PLATFORM FOR E-SERVICES DEL. ACHIEVEMENT OF OUTCOME: Broadband subscriptions exceeded targets and partially met 2013/14 targets, number of service access points have partially met both 2012/13 and 2013/14 targets, and the number of services delivered using mobile platforms has exceeded both. REFORM AREA 2.2: SERVICES IMPROVED IN RESPONSE TO CITIZEN FEEDBACK ACHIEVEMENT OF OUTCOME: 50 services have incorporated user participation in the design and impact assessment, partially meeting the target of 100 e-services and the End of Series 2013/2014 target of 200 e-services. It is possible this number may increase by June 2013, the appropriate date of measuring performance using the target. REFORM AREA 2.3: BPR PROCESSES, IMPROVE BEHAVIOR OF OFFICIALS RE: SERVICE DELIVERY, RAISE SERVICE QUALITY ACHIEVEMENT OF OUTCOME: Actual performance for BPR will exceed targets for 2012/13 and partially meet targets for 2013/14. In addition, the number of states which have implemented targeted governance training (20) is twice that of the target, and partially meets 2013/14 target of 35 states. REFORM AREA 2.4: THE ESD BILL IS BEING CONSULTED AND DEBATED IN PARLIAMENT ACHIEVEMENT OF OUTCOME: The ESD bill has been referred to the appropriate Standing Committee in Parliament and third party policy experts indicate that the ESD bill is likely to become law by the end of calendar year Targets for 2012/13 and 2013/14 have been met. REFORM AREA 2.5: USERS CAN BE VERIFIED BY SERVICE DELIVERY SYSTEMS ANYWHERE, ANYTIME ACHIEVEMENT OF OUTCOME: By June 2012, 18 e-services were verifying users. This level of performance is positive, and partially meets the target of 25 e-services. It is quite possible that the targets will be met by June 2013, but an additional verification would be needed to make this determination. This does not meet the 2013/14 target of 50 e-services 39

50 Annex 8: Summary of Findings from Impact Assessment of NeGP State and National Level Projects The impact assessment study results indicate an abysmal state of delivery of services in the earlier or in some cases, existing manual system in all the three types of projects (land records, property registration and transport). Users need to make 3-4 trips (and up to seven trips in some cases) to government offices on an average, wait for two hours or more (and up to 6 hours in some cases) in each trip, and pay bribes frequently (20 to 50 percent of all transactions) to get services. Even a simple service such as obtaining a copy of land record can take as many as 21 days (although it takes six or less days in seven states), while property registration and issue of a driver s license take an average of 33 and 24 days respectively. In some states, the elapsed time (days elapsed from application to final registration) for the latter two services can be as high as 2-3 months. Citizens indicated an overwhelming preference for computerized service delivery. Their preference was supported by specific areas where concrete benefits have accrued to them. For instance, in all three services, the number of trips to offices reduced by 1-2 trips after computerization whereas waiting time has been reduced by percent. Direct cost savings to citizens averaged rupees across all states. Although the outcome in reducing corruption is mixed, e-government seems to have the potential for significant reduction in corruption. This is indicated by the fact that bribes have either been eliminated or significantly reduced in five out of the ten states after land record computerization. In property registration and transport, there has hardly been any impact on bribery and a large number of users continue to go through agents to get the service. Amongst the three projects, land record computerization seems to have resulted in the most positive impact. A significant reduction was seen in the number trips and waiting time in all states. However, in most states users reported an increase in travel costs (in spite of a reduction in number of trips) because in the computerized mode, delivery of Record of Rights (RoRs) has been centralized to taluka level from the village level. Perception on quality of service and quality of governance showed an improvement in all projects. In overall citizen perception, Himachal Pradesh (HP), Rajasthan, Uttarakhand and Tamil Nadu rank high while Haryana, Orissa and West Bengal rank low based on a composite score (computed on the basis of improvements on twenty dimensions of service delivery) in all three projects. The study reveals that there is a great deal of difference in the performance of the best and the worst state in case of each of the three computerized applications. Given the fact that the processing steps in the delivery of the three services can be very similar across states, there is no explanation for the variation in performance, other than the varying quality of process reform and design of these systems. This indicates that each state has chosen to design its application without learning from best practices elsewhere. Among the three central government projects, MCA21 appears to have had the most positive impact on the users on key dimensions covered in this study. The passport project has had virtually no impact. Results of the Income Tax survey indicate that whereas corporate users, individual users have not benefitted significantly. 40

51 In order for a system to deliver significant value to all stakeholders, it is important to involve them in the design of the application. In the case of MCA21, design and implementation was done through a consultative approach with internal and external stakeholders participating at every stage. Corruption level, accuracy of transactions and cost of availing service as the three most important attributes. Other important attributes are the queuing system, Accessibility to data, Speed and efficiency of query handling, Clarity and simplicity of processes and procedures and Time and effort required to avail services. 41

52 Annex 9: Policy and Technical Support * Policy and Technical Support Provided by the World Bank for NeGP Development 1 WB's Policy Notes - on all the key policy areas 2 Bank's Note on suggestions for ESD Bill 3 Framework for Citizens Engagement 4 Inputs on NeGP M&E Framework 5 WB's workshop on m-governance and Ist Draft paper on Mobile Governance 6 Guidelines on Strategic Control of Outsourced e-governance projects * 7 Bank's review comments on the Capacity Building Scheme 8 Communication and Awareness Strategy 9 Grant in Aid Template * 10 Results Framework 11 DPR Template * 12 DPR Appraisal framework * 13 WB's Impact assessment report of e-government projects in India and Chile * 14 Program Management Manual * 15 Program Financial Management Manual * 16 Program Procurement Manual * 17 Targeting Criteria * 18 Review note on Standards for e-government 19 Model RFP Toolkit and Guidance Note for preparation of RFPs * 20 MOUs Template for support to states * 21 Review of State and Central MMP proposals * 22 Capacity assessment of NICSI, NISG and NeGD * 23 Review of Rate Contract procedures for NICSI * 24 Review of Enterprise Architecture Framework * 25 DPR Cost Tables * 26 South-South egov knowledge sharing 27 e-panchayati Raj initiative 28 Discussions on the National IT Policy 29 Meetings on UID / Aadhaar Connotes policy and technical support provided during e-bharat SIL preparation, prior to e-delivery of Public Services DPL 42

53 Annex 10: Summary of Borrower's ICR and/or Comments on Draft ICR The Borrower s ICR consists of the following documents: 1. A cover letter from the Ministry of Communications and Information Technology 2. An updated policy matrix providing actual data as noted in the column labeled Status as of 30 th June, An update of each reform area under the e-delivery of Public Services DPL ( Action Taken Update ). 4. Comments on the draft ICR 43

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