About CSC Project:-

The idea is to develop a platform that can enable Government, private and social sector
organizations to integrate their social and commercial goals for the benefit of rural
populations in the remotest corners of the country through a combination of IT as well
as non-IT services.
The CSC is a strategic cornerstone of the National e-Governance Plan (NeGP),
approved by the Government in May 2006, as part of its commitment in the National
Common Minimum Programmed to introduce e-governance on a massive scale. The
CSCs would provide high quality and cost-effective video, voice and data content and
services, in the areas of e-governance, education, health, telemedicine, entertainment
as well as other private services.
The Scheme creates a conductive environment for the private sector and NGOs to play
an active role in implementation of the CSC Scheme, thereby becoming a partner of the
government in the development of rural India. The PPP model of the CSC scheme
envisages a 3-tier structure consisting of the CSC operator (called Village Level
Entrepreneur or VLE); the Service Centre Agency (SCA), that will be responsible for a
division of 500-1000 CSCs; and a State Designated Agency (SDA) identified by the
State Government responsible for managing the implementation over the entire State.

Vision Statement: -
Government of India has formulated the National e-Governance Plan (NeGP) with the
vision of providing all government services in an integrated manner at the doorstep of
the citizen at affordable cost. To achieve this larger mission of the NeGP, the
Department of Information & Technology (DIT), Government of Arunachal Pradesh has
planned to start common service centre (CSC) in Arunachal Pradesh Distt. Especially in
rural areas.

Objectives of CSC Plan: -

1. CSC as a Change Agent: -
The CSCs cannot be seen as mere service delivery points in rural India. The CSC has
to be positioned as a Change Agent - that will promote rural entrepreneurship, build
rural capacities and livelihoods, enable community participation and effect collective
action for social change - through a bottom-up model that focuses on the rural citizen.

ICT in isolation cannot undertake such monumental socio-economic change. However,

Rural Entrepreneurship driven by Government, Private and Social sector agencies, and
supported by continuous capacity building and training has the power to undertake
dramatic changes in rural incomes as well as attitudes. The intensity of national goals
fueled by local entrepreneurial vigor can act as a powerful catalyst to empower rural
India.
2. The Development Challenge:-
About two-thirds of India’s predominantly rural population having agriculture as its
primary occupation, account for less than one-third of the National Income leading to
disparity in incomes in rural and urban India. Government agencies, domestic and
international institutions associated with development, and NGOs have been engaged
in addressing this persistent development problem, each in their own space and time,
armed with their respective development ideologies and tools. Traditional rural
development interventions have centered round
a) Rural development programmes and schemes launched either at central, state or
local government level
b) Decentralization of Planning
c) Better enforcement of land reforms and
d) Greater access to credit

The CSCs would focus on content customization and multi- lingual delivery of end-to-
end services for income enhancement in rural areas. These (CSCs) are being designed
as ICT-enabled retail distribution outlets for delivery of Government, Social as well as
Private Sector services in the areas of Telecom, Agriculture, Health, Education,
Entertainment, FMCG products, Banking and Financial services, Utility payments, etc.
Each CSC is expected to serve a cluster of 6-7 villages.
Stakeholders: -
The CSC Structure -
The Framework outlines a 3-tier structure for the CSC Scheme:
a) At the first (CSC) level would be the local Village Level Entrepreneur (VLE- loosely
analogous to a franchisee), to service the rural consumer in a focused cluster of 5-6
villages.
b) At the second/middle level would be an entity termed the Service Centre Agency
(SCA – loosely analogous to a franchiser) to train, manage and build the VLE
businesses
c) At the third level would be the agency designated by the State- the State Designated
Agency (SDA) - to facilitate implementation of the Scheme within the State, to provide
policy, content and financial support to the SCAs
The National Level Service Agency (NLSA):
There are significant challenges in exploiting opportunities to achieve economies of
scale in the identification, customization and implementation of the physical and digital
infrastructure required for the project. Further, many of the potential citizen-centric
services would lend themselves to aggregation at the national level. To enable the
State-specific implementation plans and benefit from such economies of scale,
aggregation of best practices, content providers, etc., it is expected that the PMA extend
its role to a National Level Service Agency (NLSA) – and continue with the project for
another 30 months.

The Special Purpose Vehicle (SPV): -

In addition to the NLSA, an SPV has been proposed for the day-to-day monitoring of the
CSC Scheme, in terms of financial support, content aggregation and SCA enablement.
It is suggested that the SPV would be set up during the initial implementation phase of
the Scheme, but it is essentially an entity created to be an integral part of the CSC
framework in-perpetuity. The SPV would undertake the following key roles and
responsibilities:
CSC Implementation Framework Structure: -
Department of IT (DIT) role: –
➢ Provide policy and regulatory support –
➢ Provide financial support in the form of guaranteed
“sustenance revenue”
✔ Provides necessary support for delivering e-Government service
✔ Facilitate infrastructure support through Sahaja Worldwide Announcement
and News (SWANs)
➢ Combine central and state support for the CSC scheme
➢ Enable approvals at the central & state level for smooth implementation of the
CSC scheme
National Level and Service Agency (NLSA): -
➢ Undertake project Dev work, develop a PPP model
 ➢ Build a partnerships with content and service providers, undertake resource
mobilization
➢ Develop training and capacity building plans
➢ Assist state to manage bid process SCA selection
➢ Share best practices, provide continuous feedback, monitor the CSC eco system
➢ Facilitate achievement of goals and objectives of scheme
State Government:-
➢ Provide policy and budgetary support to SCAs and VLEs
➢ Facilitate role out of e-government services for CSCs
➢ Manage bid process and selection of SCAs and vendors
➢ Support of the CSCs through the sustenance revenue framework – back stopped
by the GoI
➢ Provide local infrastructure – SWANs, SDCs, etc
Service Center Agency (CSC): -
➢ The SCA is the prime drivers of the CSC
➢ Expected to come from divers segments
✔ Corporates like ITC and Tata Chemicals
✔ PSUs like BEL and ECIL
✔ SMEs and entrepreneurs like……………………………
✔ Trailing institutes like AISECT and MITCON
✔ NGOs like Tarahaat and SEWA
✔ SHGs like Dhan foundation
✔ CO-operatives like NDDB, etc
✔ Basically agencies having experience in creating and managing service delivery
in rural area
Role of SCAs
➢ Selection of SCA(Based on financial support sought) by state, through a
transparent process assisted by NLSA
Responsibility of SCA
✔ Develop business plans for CSC implementation, arrange the financing with help
of NLSA if needed
 ✔ Identify, train and manage the VLEs(franchisee)

✔ Co-ordinate with SLA

✔ Regular feedback and monitoring
✔ Build the partnership with content and service provider
✔ Share based practice
➢ State could have between 2 to number of district SCAs

Special features of CSC: -

1. Public Private Partnership Model
2. No capital support
3. Debt service reserve fund

Public private partnership model - A PPP provides a format in which all the important
stakeholders are incentivized to come together in achieving the community
development goals enshrined in the project. To that effect, a PPP framework is more
than a Joint Venture.
The PPP Framework -
Debt service reserve fund – Fund is which money are placed a reserve to be used to
pay debt service if pledged revenues are insufficient to satisfy the debt service
requirement.

Integrated service model: -

State assessment of Arunachal Pradesh: -

The State of Arunachal Pradesh is situated in the north-eastern part of India and
attained its Statehood on 20th February, 1987. It has a population of 1,091,117 as per
the 2001 census and an area of 83,743 sq. kms. It has a long international border with
Bhutan to the west, China to the north and north-east and Myanmar to the east.
According to its area, Arunachal is the largest State in the north-east region. It forms a
complex hill system of Shivalik and Himalayan origin and is criss-crossed by numerous
rivers and streams. The State has the lowest population density of 13 persons per sq.
km. Total literacy of the State rose to 54.3% in 2001 from 41.59% in 1991. The presence
of difficult hilly terrain and remoteness present a major challenge for the development of
the State. The lack of a strong communication infrastructure is also a drawback. Rural
population in state is 870,087 and urban population is 227,881. Sex ratio females per
thousand males are 901.
Arunachal Pradesh is yet to draft its IT policy. It is also ranked low in terms of the level
of computerization of the State Departments. It has however, taken up the Community
Information Centres (CIC) Project in order to enhance service delivery to its citizens
There are 16 dist. In Arunachal Pradesh: -
1. Anajaw District
2. Changlang District
3. East Siang District
4. Kurung kumey District
5. Lohit District
6. Lower diabang valley
7. Lower sudansir District
8. Papumara District
9. East kameng District
10. Tawang District
11. Tirap District
12. Uper tiwang valley
13. Uper subansiri District
14. Uper siang District
15. West kameng
16. West siang District
According to the survey of Arunachal Pradesh government –
• Villages = 4065
• Gram panchayat no. = 1747
• Zillaparishad wards no. = 15
• Census town no. = 16
• No. of circles = 149
We got some data about these districts than after analyzing hose data we start our CSC
project in these districts. Districts are –
➢ Upper siang district
➢ East cameng district
➢ Papum para district
➢ Tawang district
 ➢ Tirap district
➢ Lohit district
➢ Changlang district
Share of Transaction Charges: - For facilitating the G2C transactions, the State
Government / SDA will share the following amounts with the SCA:
• E-Government Services: The State Government would share Rs. 5 per
transaction out of the Rs. 15 charged to the citizen per transaction.
• Utility Transactions: The utility company will pay the SCA / VLE Rs.5 per
transaction for collecting bills on their behalf. State Government will Charge Rs. 1
out of this.
• Land Records: The State Government would share Rs.15 out of the Rs.25
charged to the citizen per land record transaction.
Financial planning – Before implementing CSC project the committee members have
to analyze about Average tangible networth/Debt equity ratio/current ratio.
CSC project proposal – Execution:
• Business plan – offerings and sources of revenue
• Tie-up with content and service providers
• Organization structure
• Project implementation plan and schedule
• Operational details – selection of VLE/VCE and training
• Fund mobilization and financial commitments
• CSC transaction monitoring mechanism
• Payment mechanism
If we segment the population of Arunachal Pradesh than we divide the population
according to rural urban segment. The purpose of starting common service center is to
provide better facilities in rural area to promote them.
As concerns to the population of Arunachal Pradesh there are 4065 villages but we can
not implement our project in whole villages, than we have to concerns on highly
populated villages as well as district. According to survey the average population of
Arunachal Pradesh is approx ten lakhs. Then we divide these populations in approx two
lacks families.
If we consider approx 1,000 families as a population of a village. Than we are going to
start 1 common service center in a village than we have to start approx 200 CSCs to
cover the whole families as well as population.
In implementation of the plan have to take 1 year than in first 2 months we only plan
about the proposal than accordingly implement the plan and successively start the
common service center in rural areas.

Project phases –

Phase 2

Phase 3
Project development – In this phase we plan and define the project and make
accordingly various team such as –
➢ Project management team
➢ Software development team
➢ CSC role out team
➢Phase
Hardware team
1
➢ Communications team
➢ Accounting team
➢ Marketing team
➢ Recruiting analysis team
To perform these activities it takes 1-3 weeks during the project through these activities
we can make software development plan registration of CSC, marketing plan document
recruitment analysis document etc.
Put operational variable in place – In this phase we decide the operational variables
that is what are the variable of the project and at which place it has going to be
implemented it take 5-14 weeks of project during these weeks we analysis or review
team meeting through this we review document initiate marketing of CSC project at
centers, initiate liasoning with 25-50% service provider develop training and support
planning identifies kiosk operators plan software testing plan CSC portal for testing. This
phase is an ongoing phase during the project. To implement CSC plan at this stage we
take loan from banks and other financial institution and pays interest accordingly.
Set up physical, digital and technology infrastructure – In this phase we set up the
infrastructure for CSC projects and provides customers service and facilities through
latest technology. This phase has taken 15-onwards weeks for project improvement.
During implementation of the plan in 20-24 weeks our team meeting reviews CSC portal
development document complete training of government development personnels.
Deploy support personal at 100% centers.
Building the rural hubs- This is a task for integration of commercial goals of private
sector with the large development goals of the Arunachal Pradesh hence, the CSC
scheme is being deliberately position as a multi-dimensional initiative, not just e-
governance; not just information; not just digital services but all that and more based on
the community needs.
The CSC scheme is not about rolling out IT Kiosks but building more and more rural
businesses and also linking rural India to a basket of information, goods and services
through end-to-end demonstrable models.
Role of the NLSA - The main and initial role of NLSA are as follows-
➢ Program management support at national level
➢ Creation offer sustainable business model
➢ Formulating a CSC Roadmap for implementation
➢ Developing a transparent procurement and monitoring process
➢ Coalesce partnership and assist state government in selecting the services
centre agency(SCAs)
➢ Facilitate to mobilize resources from various sources as need felt at the state
level
➢ Develop training and capacity building plan
➢ Knowledge exchange, integration of best practices
CSC Infrastructure- For infrastructure of one Common Service Centre(CSC) we
have to require following-
➢ 100-150 sq.ft space
➢ 2 PCs with UPS
➢ 2 Printers(Inkjet+Dotmatrix)
 ➢ Digital or Web Camera
➢ Wired / wireless connectivity as per availability
➢ Genset / Inverter, mobile phone, furniture
➢ OS and other software
For having all these equipments to construct the CSC Project, the total estimated cost
INR 2.00-2.50 lacs (Excluding land and building).

The services- Government to citizen-

Government provides many facilities or services for rural public through support
them to establish common service centre in their areas with their health to
promote them and makes their life easy. The govt. provides services like:-
➢ Land records
➢ Birth/Death certificate
➢ Grievances
➢ Form downloads and submissions
➢ Bill payments-water, electricity, telecom, etc.
➢ Licenses,permits,subsidies
➢ Property ,tax and registrations
➢ Bus pass, Railway tickets, Passport etc.

Business to Consumer -
Business to Consumer services is as follows:-
➢ IT services (printing, scanning, DTP, Web surfing etc.)
➢ Agri business services (Conculting, testing, information, input sales procurement,
etc.)
➢ Banking and Financial services (Loans, deposits, microfinance etc.)
➢ Telecom services(PCO,Post paid/Pre paid connections, mobile phone sales)
➢ Commercial services (Matrimonial, Astrology, Biodata etc.)
➢ Retail sales and referrals (FMCG, Consumer goods, Durables, Vehicles, etc.)
➢ Education services (IT training, English speaking, etc.)
 ➢ Health (Tele-medicine, OTC medicine etc.)
➢ E-Commerce
➢ Business to Business-
➢ Market research
➢ Rural BPO services (Data collection, Data digitalization etc.)
➢ Advertising,Branding,Promotions

Operational details – selection of VLE/VCE and training- The VLE is the key to the
success of the CSC operations. A good VLE would be the one who has good
entrepreneurial skills, strong social commitment as well as respect within the
community. The VLE would manage the CSC business at the ground level. Selection
and proper training of the VLE would play a vital role in effective implementation of the
CSC.
The Village Level Entrepreneur (VLE)
Required Skills
➢ Proximity to customer & understanding of consumer needs
➢ Trusted by consumer
➢ Willingness and ability to learn computers and products
➢ Initiative to tap local revenue generation potential

Provided by the following

➢ Resident of kiosk village
➢ Part investment by kiosk owner
➢ Educated
➢ Support from NLSA with training, content development, linking with other
potential service providers