Signpost. EY newsletter for the Government and the Public sector. Inside:

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1 February 2016 Signpost EY newsletter for the Government and the Public sector Inside: Assistance to Jharkhand for World Bank/DIPP ranking of States on Ease of Doing Business...2 Green Energy Corridor...4 Advisory Servies for development of port-based SEZ - Phase I at Jawaharlal Nehru Port Trust...6 Changing Lives through skill development: employability enhancement and IT/ITES sector development in Bangaladesh...8 Signpost, EY s newsletter on the Government and how we are supporting it in its initiatives. In line with previous editions, this edition also contains four case studies of projects we have been supporting. These case studies will give you an insight into our capabilities and the success our clients have achieved with our support in implementing large and complex government projects. As the Indian economy moves up in rank in the World Bank s Ease of Doing Business index, which indicates to you in this edition our success in developing single window portal for Jharkhand. EY has been supporting the Government of Jharkhand to streamline regulatory processes to improve Ease of Doing Business and improve the overall investment climate in the state. Thus it aims to contribute to the Make in India campaign an initiative to transform India into a global design and manufacturing hub. We hope you will appreciate EY s holistic approach that helped Jharkhand propel to the third-ranked state in the country by World Bank and Department of Industrial Policy & Promotion (DIPP), much ahead of other industrialized states in the country. In order to keep pace with the increasing demand for electricity, EY is leading an Indo-German consortium appointed by Deutsche Gesellschaft für Internationale Zusammenarbeit GmbH (GIZ) within the bilateral cooperation between Germany and India in the Green Energy Corridor project for large scale grid integration of renewable energy. The assignment is expected to provide the Central as well as State Government organizations/institutions a concise set of decision making recommendations for extension and operation of the electricity transmission grid in the light of increased share of Renewable Energy (RE) in the grid. development of a port-based Special Economic Zone (SEZ); thereby, laying the foundation of a state-ofthe-art logistics and manufacturing node at JNPT. EY s advisory services helped the Trust avail the Ministry of Shipping s clearance and fast-track the project implementation, thanks to a robust framework and methodology introduced by EY. The last case study in this edition is an initiative that EY is engaged in, that is helping change the lives of many in Bangladesh. EY is advising the Bangladesh Computer Council (BCC) the nodal agency for IT/ ITES sector human resource development in Bangladesh, on large scale employability enhancement in IT/ ITES Sector. Through enhanced IT Training and foundation skills training, the project aims to achieve better opportunities for more than 30,000 graduates over the next three to four years. As of December 2015, more than 3,000 students from 15 educational institutes have undergone this training in the pilot phase. The assignment brings to forefront how governments around the world can address challenges of youth unemployment, lack of skills and sector growth. The assignment is among the largest World Bank supported integrated skill development IT/ITES sector project in the world. Do continue to share your feedback and ideas with me at gaurav.taneja@in.ey.com. I look forward to hearing from you. Kind regards Gaurav Taneja India Government and Public Sector Leader

2 Signpost, EY newsletter for Government and Public Sector 2 Assistance to Jharkhand for World Bank/DIPP ranking of States on Ease of Doing Business Amid competition to attract investments into states, the World Bank/DIPP ranking for states is likely to help in mobilizing investments. EY is supporting the Government of Jharkhand in streamlining regulatory processes to improve Ease of Doing Business. This has helped them to become the third-best state in the Ease of Doing Business ranking in the country Overview and challenges Jharkhand was placed in Category 3: low33.33 percentile of states in the Survey on Business Regulatory Environment for Manufacturing - State Level Assessment, by the Planning Commission, Government of India published in March At the same time, various departments in the State Government were in the process of getting familiar with the concept of Ease of Doing Business. Although the Single Window system was present within the Industries Department of the State Government, all approval were not compiled at the single window. Other Government Departments were adhering to their There was a need for information on approval processes to be easily available in the public domain. Support and intervention EY consolidated information pertinent to the DIPP ranking assessment framework and coordinated with various government agencies on the agenda. In the process, EY were brought out and existing laws were amended. EY also helped develop a Single Window portal that provides an inclusive online approval mechanism across all departments. The Single Window portal with single sign on facility was launched by the Chief Minister on 8 September To create awareness about the Single Window portal and popularize the initiative, EY supported multiple interactions with the industry, trade bodies, trade unions as well as other state departments. EY also assisted the State Government in the promotion of various procedures. Result and impact A Jharkhand Government, EY s holistic approach helped Jharkhand beat all odds and achieve the third ranking, much ahead of other industrialized states. The World Bank-DIPP report also cited Jharkhand as the best state on complying with labour regulations and Best state on carrying out inspections. This ranking is likely to help the state in attracting more investments. Regulatory reforms such as Single Window Act, self- and checklist for joint inspection mechanism, combined application form, etc., were put in place. EY also supported based inspection related to labor laws; online allocation of inspectors for inspection under labor laws and online application for felling of trees and grant of transit permit. These reforms enabled the working of government departments to align with Ease of Doing Business agenda. number of processes, as well as capacity building of single window agency. EY s Economic Development Advisory Service, as part of Transaction Advisory Services, helps government agencies to streamline approval processes to attract to invite investments, organize global investors meet, implement investment intents and improve overall investment climate in the State. For more details contact: Adil Zaidi Partner- Transaction Advisory Services, EY Tel: adil.zaidi@in.ey.com

3 Following the completion of DIPP s review on July, 2015, I would like to inform you that your team at Ranchi under the able and committed leadership of Dr. Akhilesh Saurikhia has worked hard and sincerely on the 285 point agenda of DIPP. The hard work put in by EY team is especially noteworthy. I hope that this team will continue to support the word towards fully achieving Ease of Doing Business. Ms. Himani Pande, IAS Secretary, Department of Industries, Government of Jharkhand 3 Signpost, EY newsletter for Government and Public Sector

4 Signpost, EY newsletter for Government and Public Sector 4 Green Energy Corridor year plan period ( ). In order to be able to evacuate electricity of these RE capacities, an expansion and modernization of the intra- and inter-state distribution as well as transmission grid is required. An EY-led consortium is assisting the Government in developing strategies to foster sources of clean energy and integrating them in the Indian power grid. Overview and challenges The Indian electricity system faces a predicament the national demand for energy is expected to grow energy resources are limited. The electricity production needs to be increased to keep pace with the demand. Another objective of the Government of India is the reduction of greenhouse gas emissions. Further development and deployment of RE is one measure to achieve these objectives. In October 2015, 38 GW of grid connected production capacity came from RE sources (excluding large scale hydro power), which accounted for around 13% of the overall 280 GW installed capacity. The Government of India has set aggressive capacity addition targets for 2022). In order to be able to evacuate electricity of these additional RE capacities, an expansion and modernization of the intra- and inter-state distribution as well as transmission grid is required. This is mainly due to the geographical distance between centers of production and consumption as well as due to the intermittent availability of RE sources and their necessary measures for grid stabilization. Aiming to expand their bilateral development cooperation in renewable energy, governments of Germany and India expressed their intention to foster the increased use of RE on the existing experience and knowledge of Germany in share the understanding that technical assistance for realizing the Green Energy Corridors plan including technical assistance for forecasting, balancing, market design and network management in connection with grid integration of RE should be considered under the Indo- German Technical Cooperation and realized through Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH. Support and intervention EY-led consortium played a vital role in (i) designing Renewable Energy Management centers; (ii) grid management areas, i.e., developing methodologies for forecasting, scheduling and assessing and enhancing the renewable balancing capability of each state; (iii) market design with particular emphasis on increased share of RE in the overall power sector (ancillary markets, capacity market etc.) and (iv) analysis and recommendation on the regulatory measures in India that enable larger penetration of variable RE generation into the mainstream power network (grid codes, technical standards etc.). The Project was undertaken at the Central as well as at the State level. Six Indian states, Andhra Pradesh, Gujarat, Himachal Pradesh, Karnataka, Rajasthan and Tamil Nadu, agency and implementation organizations are currently the Ministry for New and Renewable Energy as well as the implementing institutions of the Ministry of Power. Result and impact The assignment is expected to provide the Central as well as State Government organizations/institutions a concise set of decision making recommendations for extension and operation of the electricity transmission grid in the light of increased shares of RE in the grid. EY s Climate Change & Sustainability Services (CCaSS) specializes in providing advisory services related to the diagnosis, development and the implementation of sustainability-focused strategies. The team is well known for its ability to deliver solutions that meet the needs of governments and corporations. For more details contact: Shuvendu Bose Executive Director- Advisory Services, EY Tel: shuvendu.bose@in.ey.com

5 5 Signpost, EY newsletter for Government and Public Sector

6 Signpost, EY newsletter for Government and Public Sector 6 Advisory Services for development of port-based SEZ Phase I at Jawaharlal Nehru Port Trust EY s pragmatic advisory services helped it avail the Ministry of Shipping s clearance and fast-track project implementation. Overview and challenges With its strong commitment to provide seamless service to its customers as India s prime facilitator of international trade, Jawaharlal Nehru Port Trust (JNPT) strives to be the undisputed leader for container handling in the South Asian region in future. JNPT has charted a planned capacity augmentation program to increase the port s cargo-handling capacity to around 10 million TEUs and pursue its ambitious targets. Therefore, JNPT engaged EY as advisors to facilitate the development of a portbased Special Economic Zone, which would provide the necessary thrust to port development. One of the key kind project in the country, and consequently, there is no established framework and methodology to establish the proposed structure in the public sector. Support and intervention EY played a vital role in coordinating between the Ministry of Shipping, Ministry of Commerce and Industry and other stakeholders on the project structure and laying the foundation of a state-of-the-art logistics and manufacturing node at Jawaharlal Nehru Port. EY advised JNPT on project structuring, assistance in master planning of the project, tendering for selection of various agencies and stakeholder coordination with the Central Government, State Government and private sector players. EY also assisted JNPT in the process of applying for the environmental clearance, validating sector demand, requesting expense approval from the Ministry of Shipping, recommending a launch price for the plot allotment and obtaining approvals from competent authorities. Result and impact Till now, the detailed master planning of the project is complete. Moreover, the much needed environmental Commerce have been accorded. The bidding process for the selection of the EPC contractor has been concluded and the EPC contractor will be on board soon. The project costs for manufacturing units. The project is expected to attract private sector investment of nearly INR30 billion. Furthermore, the project is expected to provide direct and indirect employment to around 100,000 people. EY s Public Private Partnership (PPP) services focus on development of infrastructure and provisioning of related services through the participation of the private and effective service delivery systems by leveraging the potential of the private sector. As part of our mandates, we advise government bodies on designing relevant studies, structuring and implementing optimal risk-sharing mechanisms, and putting in place bid process management systems to select private players. We also advise governments on post- award activities For more details contact: Abhaya Krishna Agarwal Partner Public Private Partnership (PPP), Transaction Advisory Services, EY Tel: abhaya.agarwal@in.ey.com Furthermore, EY has launched a plethora of marketing activities, leading to the global visibility of the project and ascertaining positive investor interest.

7 The EY Team has been deputed on a very prestigious project undertaken by the port under Ministry of Shipping, Government of India (GoI) namely Development of port based SEZ Phase I at JN Port. I have been associated with the project as the nodal person in the capacity of Asst. Manager (Estate/PPD) since The EY team has demonstrated a strong and effective work for the project. Their professional, analytical and timely approach to the delivery has been well appreciated. R B Joshi Assistant Manager (PPD/Estate) JNPT 7 Signpost, EY newsletter for Government and Public Sector

8 Signpost, EY newsletter for Government and Public Sector 8 Changing lives through skill development: employability enhancement and IT/ITES sector development in Bangladesh Governments around the world are struggling with youth unemployment, lack of skills and sector growth challenges. Large scale employment oriented, skill development programs in terminal university years as planned in this project may have an answer to address these challenges. Overview and challenges Bangladesh s GDP is largely dependent on exports of readymade garments and manpower supply to the Middle East. In recent years, the Government of Bangladesh has embarked on a vision to build a robust IT/ITES sector. The focus is on strengthening the nascent IT/ITES industry by skilling the human resource base to support this aspiration. In early 2015, with the support of the World Bank, and in partnership with EY India, the Bangladesh Computer Council (BCC) started an ambitious program to create a large pool of 10,000 IT and 20,000 ITES industryready graduates. Through this program, the BCC aims to address the challenges of skilling the youth, generating employment and building sector competency in IT & ITES sectors. On successful completion of this program, BCC seeks to realize the Government s Vision 2021 of increasing the share of IT/ITES in the national GDP. Support and intervention EY India is working closely with BCC in conducting a detailed skill gap analysis, which would set the tone for training of youth. Prior to full roll out, 3,000 students will be trained on a pilot basis and corrections in the pedagogy, curriculum and training aids will be made so that the training is aligned to available employment opportunities. Some of the important projects activities included: Skill gap analysis for the IT/ITES sector Proxor (a Carnegie Mellon University spin off ) Development of an online monitoring and evaluation tool, which also serves as the skills industry integrator platform for the IT/ITES sector in Bangladesh Connects with multiple corporate organizations Result and impact As on December 2015, 3,000 students across 15 educational institutes are undergoing training in around 100 batches. Some of the distinctive initiatives rolled out by EY in this project with the aim to improve employability of students include: English Hackathon: Quick spoken English training (40 hours over a week) in large numbers ( ) Embedding the training in university curriculum in the The projects target to achieve the following outcomes: 1. Contributing to creating an environment where local companies can expand their IT/ITES businesses 2. and employment/ freelancing/ entrepreneurship opportunities to more than 30,000 graduates 3. Building a pool of local trainers and capability in local institutions for program sustainability Partnership with the universities and colleges Content and curriculum developed in technical and behavioural skills Alliances with leading global organizations in content development and design, E-learning, training (Info Pro Learning), training services (multiple organizations to provide trainers)

9 EY s Performance Improvement (PI) Skills and Training Team focuses on large-scale skill development,training and capacity building in India, Bangladesh and otherneighboring countries in partnership with governments, multilateral and bilateral agencies and corporate entities. It aims to facilitate skill development through a multi-stakeholder approach to integrated skill development initiatives. For more details contact: Anurag Malik Partner Advisory Services, EY Tel: anurag.malik@in.ey.com The training program we are doing with Ernst & Young is helping us to create skilled human resource for our IT and ITES Industry S M Ashraful Islam Additional Secretary to the Government of Bangladesh & ED, Bangladesh Computer Council. The need for large-scale IT/ITES HR development is very important for the Bangladesh IT/ITES industry. And this particular project caters to that need where the industry will get readily employable resources Md. Rezaul Karim Project Director, Leveraging ICT for Growth, Development & Governance Project, Government of Bangladesh Our IT and ITES sectors are developing now but we aim to change that by providing market leading skills to more than 30,000 youth in the next 3-4 years. Many of them are from families living below the poverty line. Our aim is to attract the IT/ITES and to create the jobs. But it will not only create the jobs, but it will be a great enabler for poverty reduction Shyam Sundar Sikder, Secretary, ICT Division, Government of Bangladesh. 9 Signpost, EY newsletter for Government and Public Sector

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11 Ahmedabad Near. C.N Vidhyalaya Ambawadi Ahmedabad Tel: Bengaluru U B City Canberra Block No.24, Vittal Mallya Road Bengaluru Tel: No.4, Madras Bank Road Bengaluru India Tel: Chandigarh SCO: Sector 9-C, Madhya Marg Chandigarh Tel: Chennai Tidel Park A Block (Module 601, ) No.4, Rajiv Gandhi Salai Taramani Chennai Tel: Delhi NCR Golf View Corporate Tower B Sector 42, Sector Road Gurgaon Tel: Hyderabad Hitech City, Madhapur Hyderabad Tel: Kochi NH-49, Maradu PO Kochi Tel: Kolkata 22, Camac Street Kolkata Tel: Mumbai 29 Senapati Bapat Marg Dadar (west) Mumbai , India Tel: Nirlon Knowledge Park Goregaon (E) Mumbai , India Tel: Pune Panchshil Tech Park Yerwada (Near Don Bosco School) Pune Tel: IGI Airport Hospitality District Aerocity New Delhi , India Tel: Tower 2, Sector 126 NOIDA Gautam Budh Nagar, U.P. India Tel:

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