Udyog Setu Product Snapshots
Development Commissioner of Industries (DCI) of GoM had taken initiative to set up Udyog Setu i.e. "Bridge of Facilitation between entrepreneurs and GoM” to retain and sustain the position of Maharashtra as the No.1 industrialised state in India. The GoM first came out with a white paper on this subject. To transform this vision into reality, ABM Knowledgeware Ltd. Was asked to convert the idea in to a comprehensive project proposal. Consequently GoM decided to implement only a small part of that proposal as a pilot which can be scaled up after seeing its results. ABM has successfully designed, developed and implemented the first pilot of this project at DIC, Thane.
The objective of this Business Case is to showcase the Udyog Setu pilot project in a well-organized manner. This business case will also provide inputs which will help others to implement similar concept at any other place.
This document starts with the project background, which is required to know the original concept and the necessity of the project. Then the project is described in terms of the vision and objectives, scope of work and limitations. The key stakeholders who played instrumental role in the successful implementation are listed and benefits for them are briefly described. The current project status with the help of some statistical data is shown in the next section. The summary of lessons learnt from this project is also added in the project status section to share our learning experience. Then the critical success factors, which were very important for successful implementation of this project, are described. The last but not least “The Road Ahead” section provides glimpses of the scalability of the current implementation.
 Project Background
Maharashtra is the No.1 Industrialized State in India. As per the FICCI Survey on FDI - March 2002, Maharashtra is the first choice of Investors and the rate of industrial development in this state is also higher as compared to other states in India.
To retain and strengthen this position, Government of Maharashtra (GoM) wanted to take some proactive steps. As the world is moving towards e-Commerce and e-Governance in 21st Century, the GoM decided to increase use of Information and Communication Technology (ICT) effectively to improve the quality and productivity of services rendered by the Government. One of the objectives was to make functioning of the Government more transparent to Industries and new Entrepreneurs by providing a computerized interface between them and Government. It was expected that this initiative, coupled with vast potential for economic development and "best industrial climate", would further strengthen the position of Maharashtra as the leading State in India .
Development Commissioner of Industries of GoM (DCI) decided to set up Fee Based Business Facilitation Portal (BFP). The primary objective of this exercise was to provide Single Window or “One Stop Government” facility for new entrepreneurs as well as existing industries. While pursuing this overall objective of creating better environment for industries in Maharashtra, ABM was invited to submit a proposal by studying the basic concept paper prepared by the DCI and FICCI. This concept paper had suggested phase-wise approach towards creating single window facilitation for the new industries coming up in the State of Maharashtra by implementing a web site for the DCI. This paper had initially considered around 9 different agencies, which collaborate with DCI in facilitating various procedures related to the industries.
Based on this, ABM Knowledgeware Ltd. prepared a road map for such phase-wise Business Facilitation Portal and presented it to the Secretary – Industries, Development Commissioner, CEO-MIDC and Secretary - Information Technology in 2003. It was opined in the meeting that instead of phase-wise approach covering only 9 important agencies like MIDC, MSEB etc. it would be desirable to launch the Business Facilitation Portal in a single phase only. Hence, ABM was asked to conduct further discussions with Development Commissioner for drawing the road map for launching Business Facilitation Portal in a more comprehensive manner
Subsequently, series of meetings were conducted by Development Commissioner along with ABM and Joint Director of Industries as well as Superintending Industries Officer.
During the meetings with the DCI, broad objectives were worked out for conceptualizing and implementing Business Facilitation Portal (BFP) based on the business process re-engineering being undertaken by the office of DCI. During the discussions, it was realized that the key stakeholders in this initiative would be the various District Offices of DCI and the industry. Hence, it was felt essential to have meaningful inter-action with these key stakeholders to validate the vision evolved by the DCI.
After this encouraging response at Aurangabad similar elaborate presentation was made to the Office-bearers of Thane-Belapur Association of Industries,(TBAI) which was, attended by the office-bearers of TBAI, various entrepreneurs and IT Managers of large industries. The vision was well received during this presentation and vital suggestions were made during this extremely inter-active session. The TBAI also agreed to provide seed funding for a small pilot.
However, when ABM presented a comprehensive proposal, which also involved high degree of BPRs and new methods of inter-departmental collaborations for over 20 departments and agencies of GoM, DCI again decided to revert back to the phase wise approach and implement a small pilot with the help of TBAI.
GoM issued work order to ABM to setup a Fee Based Business Facilitation Center, in the office of DIC-Thane. This center was named as “Udyog Setu”.
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Initial Vision and Objectives of BFP
Vision: “To provide a fast track Single Window Transparent Mechanism for Promoting Industrial Growth of Maharashtra.”
Objectives:
- Scalable in Size and Scope
- Single window Guidance and Clearance system for Industrial and Business Ventures providing required information
- Enable interlinking of data available with responsible State Government Departments/Agencies
- Provide Facilities for Online application submissions, registrations and monetary transactions
- To reduce the multiple touch points for industrial units with GoM.
- To provide Single Window or “one stop Government” facility for new entrepreneurs as well as existing industries
- To reduce the time required for delivering the identified Pre-establishment & Post establishment services
- To reduce the transaction cost for the industry
- To increase the transparency in the service delivery
- To improve the adherence to post establishment compliances by the industry with lesser need for enforcement activities.
- To Increase in the industrial activities in the state in medium term
- To Evaluate viability of BOOT/PPP Model
- All the new Industries establishing in the State of Maharashtra should be empowered to co-ordinate for all the necessary permissions, NOCs etc. only with DIC; and majority of the interactions should be carried out through the Business Facilitation Portal, electronically.
- Business Facilitation Portal should facilitate for simplifying compliance of various procedures by the existing units, including renewals, periodical returns, payments to multiple agencies etc. For this purpose DIC shall define & implement the necessary Administrative Reforms leading to simplification and reduction of forms, procedures & required compliances.
- The Business Facilitation Portal (BFP) should have all the necessary information like rules, regulations procedures etc. for convenience of new and existing units.
- The BFP should provide end-to-end transactions & services delivery, including payment gateways.
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Key Stakeholder Benefits
Following were the envisaged key stakeholders in this project and their envisaged benefits:
- New Entrepreneurs
- Existing Industries
- Development Commissioner of Industries
- All other related Government Departments & Agencies
1. New Entrepreneurs
- Comprehensive, well organized Information.
- Single Windows interface to GoM.
- Simplification of Procedures.
- Electronic interface- Elimination of multiple touches points.
- Direct access with Government.
- “Time bound service delivery Charter.”
- “Fast Track Service.”
- Total Transparency
2. Existing Industries
- Comprehensive, well organized Information
- Single Windows interface to GoM
- Total Transparency
- Interaction with Government, and/or other organizations
3. Development Commissioner of Industries
- Knowledge Management.
- New sources of Revenue.
- Fast Payment realization.
- State of the Art, World Class image, for the department & for State Government.
- Enhanced Potential for attracting new industries and retaining existing industries.
- Staying ahead of & other states, in today’s competitive world.
- Opportunity to implement bold and Long overdue Administrative Reforms, leading to simplification, standardization & eliminations of red tape syndromes.
- Saving in transaction cost.
4. All Other related Government Department and Agencies
- Better Coordination.
- Elimination of enormous duplication of efforts & record keeping.
- Fast Payment realization.
- Can now concentrate on their core competencies.
- Opportunity to provide Time Bound Services delivery to the Industry & Improvement in their image.
- Saving in transaction cost.
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Scope & Limitations
Scope:
The scope of the first pilot was limited to following:
- Designing and Development of Application Software for Udyog SETU front office (services counter) activities.
- Designing & installing of additional interfaces on the designated Web Site for displaying Udyog SETU application status and home page.
- Installation of the Software and Web Site interface on the infrastructure provided by DIC.
- Training and Implementation Assistance to Users allocated by DIC for successful implementation of Udyog SETU Project at DIC Thane.
- Defect Warranty Services for the Software and Web Site interface after successful implementation, at DIC Thane.
- Supply hard copy & soft copy of User Manual.
Limitations:
The first pilot had following limitations:
- Only front-end is implemented i.e. the service execution is limited to receiving and verifying the applications at Single Window and executing and delivering the final outputs manually.
- The front end application is not integrated with any legacy back end applications or databases
- Only three Government Agencies are involved in delivering their services through “Single Window”
- No administrative reforms are implemented
- Only few services, limited to the three agencies are being delivered after implementation
Project Status
The application software is designed, developed and implemented successfully at DIC Thane. Training is also imparted to 24 end users of DIC, Thane. DIC Thane is using the application software to deliver the services from three agencies as listed below
- 17 Services of DIC (District Industries Commissioner)
- 12 Services of MIDC (Maharashtra Industries Development Corporation)
- 2 Services of MPCB (Maharashtra Pollution Control Board)
Lessons Learnt
The current implementation has shown that:
- Even with the current limitations, the Udyog Setu is fulfilling the basic expectations of industries and Government.
- It is sustainable.
- DIC is planning to replicate it at other Districts.
- However the real benefits shall come only with back end workflow automations, BPRs, and new systems of interdepartmental collaborations.
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Critical Success Factors
The Critical Success Factors for successful implementation of Udyog Setu are listed below:
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