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Volume 18, No. 1, February 2008


Table of Contents

 

Village Knowledge Centers / Common Service Centers

A boon for the rural community

 

G. K. Agrawal

Ex-Executive Director, NABARD, Rural and Micro-finance Consultant and Advocate

gka2004@yahoo.com

 

[This article discusses setting up of Village Knowledge Centers as propagated by the MS Swaminathan Research Foundation, Chennai. One lakh Common Service Centers are being set up in rural and semi-urban areas under the auspices of Department of Information Technology (DIT), Government of India and state government to provide a wide range of government and private e-services, based on local community needs and requirements. These services are classified as free and fee-based services through convergence of modern and traditional dissemination techniques, so as to provide knowledge based livelihoods and income generation opportunities for poor and disadvantaged rural people. The program also envisages a public-private partnership and NGOs can play a decisive and visibly effective role in grounding the whole programme provided a supportive and conducive atmosphere is available and adequate promotional and capacity building support is provided to them. The process for providing the software support and network support is on in various states but the CSCs have yet to start functioning effectively and learning lessons are not yet available. The article also highlights the problems faced by Panchayat Raj Institutions in deployment of the necessary IT systems.]

 

Introduction

 

In the context of globalization, the world getting flattened, and knowledge becoming a major tool of power, Information and Communication Technology (ICT) is proving to be a boon in bringing economic prosperity and social empowerment. India is emerging as a major supplier of IT professionals to leading IT companies the world over. IT and outsourcing constitute a major component of the service sector. However, the rural and semi-urban areas in India where more than 70% of the population resides have not benefited from the IT boom to any significant extent. The need of the hour is to bring this segment of the population within the doorstep reach of e-services and e-education.

 

Framework

 

The framework brought out by the Department of Information Technology (DIT), Government of India, in October 2006 and circulated to State Governments outlines the policy framework, strategy and contours of financial support of Government for rapid proliferation of Common Service Centers (CSCs) across the country. It is intended that this framework would create an enabling environment for establishment of 100,000 Common Service Centers in the rural areas and 10,000 centers in urban areas to provide all possible government and private ‘e’ and other services at the door step of eventual users. The programme is a part of the ambitious National e-Governance Plan (NeGP). The centers will cater to six hundred thousand villages i.e. at least one CSC in a cluster of six villages.

 

The scheme, as approved by the Government of India, envisions CSCs as the front-end delivery points for Government, private and social sector services to rural citizens of India, in an integrated manner. The objective is to develop a platform that can enable Government, private and social sector organizations to align their social and commercial goals for the benefit of the rural population in the remotest corners of the country through a combination of IT-based as well as non-IT-based services. The project is expected to substantially extend the reach of digital services and economic opportunities into the rural and remote areas of the country.

 

The scheme would be rolled out across the country by March 2008, with an equitable geographical spread to the extent feasible, through a three-tier structure for the states. At the first (CSC) level would be the local Village Level Entrepreneur (VLE - loosely analogous to a franchisee). At the second/middle level would be an entity termed the Service Centre Agency (SCA - loosely analogous to a franchiser). At the third level would be the agency designated by the state to facilitate implementation of the scheme within the state. These three tiers would function in accordance with this framework and the further guidelines issued from time to time by the DIT, Government of India, either directly or through the designated National Level Service Agency which would be responsible for the overall planning and management of the project at the national and state level in close co-ordination with the DIT and the state governments.

 

The Infrastructure Leasing & Financial Services Ltd., (IL&FS)   has since been appointed as the National Level Service Agency (NLSA) by the DIT to initiate various project level activities as per the provisions of the above framework and the SCAs are to be appointed by the NLSA / State-level designated agency to identify the VLEs, arrange for their training, orientation and operationalizing the CSCs.

 

CSCs will provide a wide range of governement and private e-services, based on local community needs and requirements. These services are classified as free and fee-based services through convergence of modern and traditional dissemination techniques, so as to provide knowledge based livelihoods and income generation opportunities for poor and disadvantaged rural people. The program also envisages a public-private partnership (PPP) and NGOs can play a decisive and visibly effective role in grounding the whole programme provided a supportive and conducive atmosphere is available, and adequate promotional and capacity building support is provided to them.

 

A PPP framework would enable CSCs to provide world class IT infrastructure with last mile connectivity, focusing on rural entrepreneurship and a market mechanism with no capital subsidy but with assured revenue for central / state governments. The CSCs will be broadband Internet enabled and would offer a basket of Government-to-Citizen (G2C) and Business-to-Customer (B2C) services. The CSCs will provide high quality and cost-effective video, voice and date content and services, in the areas of e-governance, education, health, tele-medicine, entertainment, and other private services. The CSCs will offer well-enabled e-government services, including application forms, certificates and utility payments, remote consulting for health care, e-enabled educational training, market and supply chain linkages, rural BPOs, agricultural price and weather information. The CSCs are thus envisaged to act as change agents in accelerating integration of the rural masses into the economic mainstream of the country.

 

The National Commission on Farmers had earlier also recommended establishment of Village Knowledge Centers (VKCs) all over the country using modern Information and Communication Technology (ICT) and the Mission 2007 for setting up knowledge centers in every village by the 60th anniversary of India’s Independence. The Union budget of 2005-06 had allocated a sum of Rs. 1 billion to be made available to the then Mission 2007’s VKCs through NABARD under the Rural Infrastructure Development Fund scheme (RIDF)[1]. Considering the similarity between the services proposed to be provided by the VKCs and the CSCs, the above guidelines on CSCs also provide that the state Governments may avail the loan to be provided by NABARD for establishing such centers.

 

Typical CSC Infrastructure

The estimated cost of setting up a CSC is Rs. 125,000 to 150,000 which would include the cost of two PCs, two printers (Inkjet and DOT Matrix), digital / web camera, broadband connectivity, generator set / inverter, mobile phone, furniture and fixtures, operating system and other software.

Functions and Activities of VKCs / CSCs

 

The access center would also have local servers that would be able to host content useful to the local area. This content will be updated periodically. The project envisages strategic alliances with various rural content providers for tailor-made content specific to the area, in local language. The VKCs / CSCs will segregate the services based on local community needs by subject as well as classify them as free and fee-based services. Services that could be provided include:

  • Dissemination of information on agricultural prices in home and external markets, local agro-ecological and socio-cultural conditions of each village, various farming methods and techniques, health status of livestock and poultry, genetically modified farm products, IPR and farmers’ and breeders’ rights.

  • Providing expertise in reducing farming costs, increasing crop yield, animal husbandry, watershed management, wasteland development, agro and social forestry, post harvest management, and on-farm and off-farm livelihoods such as market-led entrepreneurship opportunities for the poor and the marginalized

  • Improved healthcare by providing access to information on health and sanitation, medical assistance, medical insurance, medical diagnostics plans and disease prevention.

  • Financial assistance opportunities and enabling better credit options and facilities by making available brochures and online information on various government development and bank financial schemes and checklist thereof and making available application forms for various purposes.

  • Distant education to villagers about new upcoming developments through satellite and online studio programs

  • Periodic awareness, exhibition of documentaries on general / sector specific developments.

  • Enhancing employment opportunities by promoting functional literacy among the adult illiterate through free and fee based computer training on various computer languages, software programs, conduct of examination and certification and liaising with software companies for employment of trained personnel; providing “Spoken English” training to job seeking youth; conducting job fairs and career counseling for village youth; dissemination of information on benefits of IT education; and making learning joyful for the young through interactive pedagogic methodologies like computer-aided learning facility through 3D multimedia software,

  • Empowerment of women and girls in the rural area   

  • Dissemination of information on Rights to Information Act and other civil rights and obligations.

VKCs / CSCs and Panchayati Raj Institutions

 

Panchayati Raj Institutions (PRIs) are the pillars of the Indian democracy to empower local populace. Article 40 of the Constitution enshrines one of the Directive Principles of State Policy which lays down that the State shall take steps to organize village Panchayats and endow them with such powers and authority as may be necessary to enable them to function as units of self-government. The 73rd Amendment to the Constitution is a revolutionary step towards decentralization of powers, grassroots governance, demand driven development, bottom up and participative planning for economic development and social justice through the Panchayati Raj comprising Gram Sabhas, panchayats, and state governments. To mobilize people and enhance the capacity of local body leaders, panchayats have been placed in an effective position to create a knowledge society at the grassroots level. The Chennai Consultation held on 9th June 2005 also adopted the Chennai Platform for Action for involving the PRIs in implementing Mission 2007 in a structured manner.

 

A number of states have taken steps to invest money and resources for IT implementation in governance and citizen services. Achievements have already been made in the policy, infrastructure, application development, data-warehousing areas and endeavors are on to achieve more in the areas of industry, networking, content creation and information management.

 

ICT can be harnessed for better delivery of Citizen Services in the villages through computerization of the various functions as well as functional computer literacy of the Gram Panchayat members, such as:

  • Training on effective role and functions of elected members: To provide computer awareness to the PRI members for harnessing of Communication Technology in every day life, VKCs / CSCs can be used as Resource Centers. There should be a convivial atmosphere of learning and acceptance in panchayat members, to welcome the new technology that is going to help, manage and assist their lives in more than just one way.

  • Orientation to the elected members on the use of computers and its importance for the panchayats’ development.

  • Computerization of the gamut of activities of panchayats: The second phase of computer training programs, after awareness of computers, could be to use effectively use the computerized data in policy planning and implementation at local level.

Present Status

 

The Cabinet approval for the CSC scheme was received in September 2006 and the guidelines issued to state governments in October 2006. Eleven states are since reported to have undertaken implementation of the scheme with 44000+ CSCs - five states have since issued Expressions-of-Interest (EOIs) to shortlist SCAs, while six others are in an advanced stage of discussions. A number of corporates, banks / financial institutions, and other agencies in private, government and social sectors have shown keen interest to participate in the scheme. The IL&FS has also been in consultation with IIM, Ahmedabad to draw a training programme for training of VLEs. However, considering the target of 100,000 CSCs to be set up within a given time frame of eighteen months or so, the progress would appear to be some what tardy.

 

Emerging Issues

  • Because of the stringent conditions for tendering such as - minimum number of years in business, large number of centers to be covered in each operational zone, high value of net owned funds for corporates and turnover requirements for NGOs, high earnest money requirements for tenders, bank performance guarantee stipulations, which may be otherwise necessary for award of contract to financially capable and professionally equipped agencies for successful execution of the project - contracts in most states are reported to have been awarded to big software companies but having no grass root linkages and experiences and the middle level agencies, while NGOs having grass root feel, touch and linkages are not able to bid  for the tenders and participate in the PPP in any real way.

  • Finding suitable premises, non-availability of power and last-mile connectivity and trained entrepreneur VLEs are other problem areas.

  • Availability and compatibility of SWAN and soft ware of other service providers and updating of websites of various agencies.

  • Need for convergence between various programmes and models.

  • A financially sustainable model for general adoption with changes as per local needs and potential is yet to emerge. As there is no capital subsidy and the government funding will be for free government e-services, there is a problem of funding infrastructure cost and meeting the operation deficits during the gestation period.

  • State governments are reportedly reluctant to borrow from NABARD under RIDF to support setting up CSCs. NABARD should de-link its exclusive support from RIDF and come forward in a major way to formulate a well designed and inclusive policy for supporting setting up of CSCs with the assistance and active involvement of grass root NGOs and other agencies through preparation of model projects, training, capacity building support to NGOs and other agencies, VLEs participating in the programme and refinance support to banks financing setting up of CSCs.

  • Effective system for close monitoring and finding expeditious solutions to grass root issues and problems has to be placed in motion on priority at the state, district and sub-district levels. Also, it is important to evolve a suitable mechanism for co-ordination among various Departments and unified command and redressal system for issues / complaints / pending applications with government departments, banks etc.

References

 

Websites of DIT, GOI, NABARD, IL&FS and other concerned agencies.



[1] The RIDF was set up by the Government in 1995-96 for financing ongoing rural infrastructure projects. The fund is maintained by the National Bank for Agriculture and Rural Development (NABARD). Domestic commercial banks contribute to the fund to the extent of their shortfall in stipulated priority sector lending to agriculture. The main objective of the Fund is to provide loans to state governments and state-owned corporations to enable them to complete ongoing rural infrastructure projects