eGovernance in PDS through Mobile Technology

SUBJECT OF IDEA (150)

Use of mobile technology. Citizen-empowerment, Monitoring and Daily updating of data of PDS in central server.

DESCRIPTION OF IDEA (4000)

To implement PDS effectively with ensuring transparency at every stage of its execution may be a matter of priority for any government. This is a citizen-centric service, and like all other such services, the transparency and citizen-empowerment are the two dominant factors for its success. There are, in Madhya Pradesh, approximately 14000000 ration cards, 17000 PDS shops in rural area, 4000 PDS shops in urban area, thus approximately 660 cards per PDS shop on an average. The figures speak of the vastness of the service delivery mechanisms. With these mammoth figures, it is really difficult to possess one leak-proof MANUAL system of monitoring at all levels right from allotment to distribution. But the technology is one which can be put through in the system to have the desired results. On account of such an enormity of this mechanism, it is difficult - nay - rather impossible to install a total computer network upto the PDS shop in far-flung and non-approachable areas of the State. But even if, it is anyhow implemented, there are so major constraints to hamper the implementation. Some of these are: heavy cost of hardware of arranging computers, printers and UPS at every shop, availability of electricity, Semi-literate incumbents and high expenditure on their trainings, heavy breakdowns in systems, long downtimes in networks, leased lines and maintenance etc. etc. But for the sake of implementation, even if it is outsourced to some private partner, how come the revenue model will be conceptualized implemented and regularized. I think, the disputes and other practical problems are bound to arise, for howsoever stringent the Service Level Agreement (SLA) may be. With so many limitations with implementation of computer networks and thereafter data transfer not taking place in real time, i.e. feeding of data at shop level and transferring it to the central server does not take place at least every evening is rather untenable and unsustainable. Mobile technology (with a small piece of government process re-engineering) offers a plausible, highly cost-effective and easy-to-use solution to all such hindrances. We need just one central server and one GSM modem and as many computers at district / block headquarters as we like. The offices of various departments in district/block level may be linked using SWAN. The system architecture is simple. The entry regarding allotment of PDS commodities district wise will done at the State (Directorate) level through some web-enabled-software having capability of accepting data through SMS also. The users of this software at district/block level will have their own logins and passwords. The entries regarding local allotment to societies or PDS shops at district level will be done at district level through this software. As and when the lead society transfers the PDS commodities to the link society and PDS shop, the lead society manager will send confirmation SMS, the data in the software will get updated. The software will send a SMS to link society manager / shop keeper, who, in turn, will confirm receipt of the same commodities. If any error found in the SMS, the software will send an alert message to sender. Thereafter, every salesman of the district will send an SMS at 18:00 every evening showing disbursed and balance quantity of PDS commodities; and the data at the server will get updated. The sequence of the commodities in such SMS will be predefined. The software will send an alert message in case of any mismatch. Every PDS consumer having a mobile number and registered with the system will be having the ID of his PDS shop and will be informed as early as his PDS shop gets the allotment. Such consumer will get information about the balance quantities of PDS commodities at his PDS shop when he sends an SMS "PDS-space-(ID of PDS shop) to a certain mobile number.

There are various benefits of use of mobile technology. It is a cost-effective system. Data related to various commodities can be sent to server by giving a space after such data and ensuring the sequence of commodities. Various queries can also be retrieved from the server using SMS. Data collection is ensured in real time from whatsoever the inaccessible the PDS shop may be. PDS shops may be inaccessible, not the mobile network. Another advantage is high uptime of data transmission in mobile technology. There is no apprehension of cable cut or power failure in this system. Another very big advantage of this technology is that it can easily cater to / handle with a very big number / volume of transactions / telecommunications. This technology can be used in various other citizen services too.

HOW DOES IT BRING POSITIVE CHANGE (1000)

The idea is to empower the citizen with a very short piece of information he requires earnestly. The M2M Technology is a reliable and trustworthy substitute for overall heavy computerization where only a small data has to be entered into in the system, and where the number of users is so high (in fact, all citizens are also users). The positive change I perceive, by implementing this system on a pilot basis first, is ownership of data by the government almost in real time (daily at certain hour), hence doing away with the possibility of tempering or distortion of data at shop or society level. Moreover, since the data will be updated daily, the activities regarding black-marketing of PDS commodities will be curbed. As furtherance to deployment of M2M technology, we may even deploy one PDA at every shop for updating of server at every sale of PDS commodities. This will ensure the data transfer in EXACTLY REAL TIME, leaving no room for shop keeper to tamper with the records.

ROLE OF PACS (Primary Agricultural Co-operative Societies) WITH RULE OF ICT

THIS IS AN eGOVERNANCE MODEL FOR RURAL ECONOMY – A POST VAIDYANATHAN ERA.
The idea is based on a simple thought – Rural India is the back office of corporate India. India’s overall economic growth and development is directly linked to a large extent upon the development of its 700-million strong rural population. Currently, the majority of India’s population lives in about 600,000 small villages with an average population of 1,100, rural villagers and are engaged primarily in agriculture and related activities. The hiatus between India's flourishing cities and bleak rural hinterland is narrowing. There are cases of opening of a new frontier of consumer demand from a large segment of 700 million people which may result in transforming India's role in the global economy from seller to buyer, from a vendor of outsourced skills to a source of consumers for the world's wares. As we find from so many sources of audio-visual media, so many Indian corporate and multinational corporations from almost all fields like Reliance, LG, Samsung, Pepsi, Airtel, Idea, many Insurance Companies, Coca-Cola, Nokia etc. etc. appear increasingly keen to understand Indian villagers. India's 700 million villagers now account for the majority of consumer spending in the country, more than $100 billion a year.

But there is other side also. The source of funds for rural population is not industry, not service sector, not business but agriculture and agriculture related activities. The consumerism and village-shining is possible only through good crop and its timely marketing. A good crop is a function of two parameters. First, weather support, which is not in the territory of man’s inherent capabilities, it lies with almighty God. The second parameter pertains to arrangement of agricultural inputs and availability of cash to bear the brunt of unwarranted happenings and constraints beyond control.

Now, arrangement of funds for rural population through various agencies have long been government’ priorities, with one of the motives to save poor farmer from the clutches of money-lenders iniquitous and exploitative nature. And that has been main driving force behind the evolution of co-operative credit structure in general and of PACS (Primary Agricultural Co-Operative Societies).

The goal should be to create a more citizen-centric, citizen-driven and citizen-supporting services. First, people need access to a wide range of services which allow them to engage in economically productive activities. These services include, at a minimum, market access, educational, health, financial, entertainment, transportation, and communications. It is primarily these services which enhance life and livelihood, and with which any population is concerned with.

Secondly, the provision of services depends on the availability of infrastructure. Without the foundation of affordable infrastructure, affordable services cannot be provided. The strategies employed between marketing grain and marketing perishables are utterly different. The perishables are largely vegetables. No doubt, food chain logistics and market linkages have to play an important role but it is the PACS that have to provide an interface, an interactive platform and accessibility facilitator between the farmer and buyer. It is more so because PACS will have an entire inter-related database regarding which farmer is growing what crop of what variety of what harvesting time. There are big shots like Reliance in the market looking for such a facility. For them, it is the information that matters and for PACS it is dissemination of relevant information that brings them business and revenue. In the arena of publicity, the word-of-mouse has become many times stronger than the word-of-mouth. It opens a new era in the field of communication and getting instant reply.

When we talk of rural economy, we notice so many things, like, Panchayat as the leading institution with presence of many government departments as Agriculture, Co-operative, Animal Husbandry, Health, and Education etc. Now what is the other most important institution as interwoven in rural culture as closely as Panchayats? That is PACS (Primary Agricultural Co-operative Societies). Why? The reasons are not fetched from far ahead. Since long, co-operative credit structure has been the central building block of rural economy, and PACS have played a pivotal role in strengthening rural economy. Hence the article envisages PACS as a for-profit but a wholly Pan-Indian organization to create and implement a sustainable, scalable platform of entrepreneurship for enabling the development of rural economy and society with the use of Information and Communication Technology (ICT). Cooperative credit institutions have been accredited with playing a significant role in the deployment of credit for agriculture and rural sector.

Needless to say, in the time to come, the PACS has play a pivotal role in building up of rural economy through out the country and when we think of rural economy, we find intervention of two important components to play a crucial role, a vibrant system of PACS and two, use of ICT. And here comes the concept of 'PPPP', i.e. PACS, Public, and Private Partnership, in the post Vaidyanathan (Committee Report) era.

Hence, in line with the Vaidyanathan Committee recommendations for the 'Revival Package', a ONE TIME ASSISTANCE TO PACS, the idea envisions, as an integration model, the transformation of PACS into a technology based RURAL (BUSINESS) HUB and thus makes it a self-sustained unit by application and integration of two models; wiz Service Delivery Model and Business Model, and to transform the PACS into (Information and Communication) technology based Rural HUB to make it the focal point for driving the rural economy, and thus make PACS instrumental in providing farmers various services with citizen empowerment, with an aim to provide Business Models to PACS offering sustenance, profitability and growth of the PACS, and turn the PACS ultimately in a self-sustained unit.

This way the idea brings the farmer into the Financial Inclusion paradigm also by enabling PACS as rural HUB at the grass root / village level. These rural hubs will be the ideal candidates for transforming themselves into Micro-enterprises at the village level through appropriate technology interventions over and above the proposed financial re-engineering (wherever necessary) and sector reforms. In fact, the total service offering of e-Sahakarita is based on visualization of the world of PACS eVolving into ePACS. It conceptualizes PACS's transformation in Rural Hub offering various services to villagers situated at a reasonable distance from their homes though PPP. It includes a variety of G2C services offered to citizens by the State Government. A list of such services is given below, though it is not exhaustive.
These hubs provide to farmers electronically –

Credit Delivery: Multiple Credit delivery channels both from Cooperatives and Commercial Banking structures
Agricultural Marketing: Integrate into markets for buying and selling, be an enabler in arranging for farmers a marketing system for their agricultural produce.
Financial Inclusion: Multiple Financial products in the form of Insurance, Mutual Funds & Deposits
Supply Chain: Integrate into supply chain of fertilizers, seeds, pesticide, farm implements etc.
Knowledge Hub: Provide Extensive leaning for best practices of agriculture and Animal Husbandry.
Service Hub: Various other G2G, G2G, CTC, B2B, G2B services like collection of utility bills, taxes, railway reservation, linkages with other markets etc. etc. and many more.

This enablement must bring a significant change in the quality and standard of living of the farmer. The article not only addresses the recommendations made by the task force (Vaidyanathan Committee) but also goes further to build sustainable, profitable micro-enterprises that bring about a turn around in the cooperative sector through transaction based service delivery business models. PACS is one of the most institutionally strong and committed intermediaries between government and rural population, and this article envisions a four P's, i.e. PPPP (Public-Private-PACS-Partnership) initiative to establish Rural (Business) Hub in the States.

The role of the cooperatives as an appropriate agency for purveyance of agricultural credit to the vast rural population cannot be undermined. But simultaneously, it is a fact that on one hand the cooperative credit structure in India is yet to adequately and appropriately transform itself into a viable and self-sustaining system, and on the other there are vulnerabilities galore debilitating the system and still continuing to abound. Instead of moving forward and stabilizing, the financial strength of the cooperative banking system has, over the years, displayed signs of deterioration. Such a scenario is highly inconsistent with the objective of enabling the cooperative banks to be effective partners in the emerging economic scenario and marching together with other financial institutions.

The only thing, that too in line with Vaidyanathan Committee recommendations to do is to integrate into the PACS the service – cum – business model in order to finally convert the PACS in a self-reliant, self-sustained and a self-sufficient co-operative, nay, corporate entity.