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

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1 April 2016 Signpost EY newsletter for the Government and the Public Sector Inside: Transaction Advisory Services for implementation of National Agriculture Market...2 Supporting Jaipur Nagar Nigam in preparing Smart City Proposal under the Smart City Mission of Government of India...4 Project Management Advisory to Ministry of Tourism for their flagship scheme Swadesh Darshan...6 Advisory Services for Civil Identity Management with the Asian Development Bank...8 Hello readers, I am pleased to present the seventh edition of Signpost, EY s newsletter on the Government sector and how we are supporting it in its initiatives. I hope the newsletter makes an interesting reading of four diverse public sector interventions ranging from online portals for agriculture markets, conceptualizing smart city plans, developing theme-based tourism circuits and civil identity management projects in South East Asia, which EY has been supporting. The Government of India has embarked on a transformation project of connecting mandis or agriculture markets through an online platform across the country. This platform is referred to as the National Agriculture Market (NAM) and is one of the initiatives started to facilitate agriculture trade in India. NAM will function as a virtual mandi of mandis. EY has helped in finalizing the structure of NAM and has also assisted in selecting a strategic partner (SP) for fast-track project implementation. NAM provides an opportunity to bring in structured market for development of agriculture sector in India and is expected to play an instrumental role in increasing the share of revenue for farmers from the entire value chain. Under the Smart City Mission, EY has assisted Jaipur Nagar Nigam in preparing the Smart City Proposal according to the Ministry of Urban Development (MoUD) guidelines. EY team s ability to think across sectors, as well as across different scale of implementation at city-wide level, helped our client articulate a strong proposal. Jaipur city was ranked number three in a country-wide smart city competition. EY has also been advising the Ministry of Tourism (MoT) in its flagship project, Swadesh Darshan. The project s mission is to develop theme-based tourist circuits on principles of high tourist value, competitiveness and sustainability. Underpinning these objectives are the aspirations to synergize efforts and focus on enriching tourist experience and enhance employment opportunities. The EY team worked across states and circuits to put forward an optimum solution to the client resulting in changes in the process of evaluating projects and formulating world class products. Till date, EY has supported MoT to achieve its mandate to accord financial sanction for 19 circuits. The last case study in this edition illustrates EY s engagement with the Asian Development Bank (ADB) in its Civil Identity Management project. Strong identity and statistical systems are important enablers to achieving the new sustainable development goals. However, Asia is in varying stages of advancement with some countries being leaders in digital identity management, while others struggle with centuries old paperbased models. The ADB has been fast building its focus on identity management, which is fast becoming an important area when it comes to citizen-centric benefit administering. EY assisted the ADB in providing technical assistance to the governments of Cambodia and the Philippines, and in building an in-house capability in identity management. Based on the reports prepared in this engagement, the Royal Government of Cambodia has engaged EY, via the ADB, to develop an implementation roadmap for the country s citizen ID program. Please 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 the Government and Public Sector 2 Transaction Advisory Services for implementation of National Agriculture Market The Government of India has embarked on a transformation project to connect mandis or agriculture markets (through an online platform) across the country. This platform is referred to as the National Agriculture Market (NAM) and will function as a virtual mandi of mandis. NAM provides an opportunity to bring in a structured market for development of the agriculture sector in India and will play an instrumental role in increasing the share of revenue for farmers from the entire value chain. EY has assisted in finalizing the structure of NAM and has also supported in selection of a strategic partner (SP) for fast-track project implementation of this prestigious project. Overview and challenges Agriculture markets in India are highly fragmented and are under the control of local Agricultural Produce Marketing Committees (APMC). In most of these APMCs, commission agents and other middle men play a crucial role in the sale of produce and there is risk of farmers not receiving actual price fetched by his/her produce. In order to overcome many of the challenges faced by farmers, multiple initiatives have been taken by the Central Government and state governments. National Agriculture Market (NAM) is one such initiative. NAM has been conceived to create an online platform, which will integrate the APMC regulated market yards across states and will create a National Agriculture Market. The Department of Agriculture and Cooperation, Ministry of Agriculture, Government of India has decided to promote NAM through Agriculture Tech Infrastructure Fund (ATIF) by creation of a common electronic platform deployed in selected regulated markets across the country. Small Farmers Agribusiness Consortium (SFAC) has been mandated to roll out the NAM in partnership with a strategic partner (SP) who will be developing, running and maintaining the proposed e-marketing platform. Support and intervention EY played a vital role as the Transaction Advisor for developing the project proposal for NAM. The firm also assisted in the selection of Strategic Partner (SP) for development of NAM portal and software. EY advised SFAC/Ministry of Agriculture on: (a) conceptualization of the NAM project and structuring in close consultation with SFAC, Ministry of Agriculture, experts, market players etc., (b) preparation of bid documents for selection of SP and (c) assistance in the bid process management and signing of agreement with SP. Furthermore, EY supported the Ministry in holding discussions with stakeholders including marketing boards, resulting in wide acceptance of the project, and getting positive interest and responses from interested partners. Result and impact Implementation of NAM will be beneficial for all stakeholders. It offers following benefits: For farmers, NAM promises more options for selling of their produce For local traders, NAM offers the opportunity to access an expanded national market for secondary trading For bulk buyers, processers, exporters, NAM offers direct participation in the local mandi trade thereby, reducing the intermediation costs EY s Public Private Partnership (PPP) services focus on development of infrastructure and provisioning of related services through the participation of the private sector. It aims to facilitate development of efficient assets 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 projects, performing technical and financial viability studies, structuring and implementing optimal risksharing mechanisms, and putting in place bid process managementsystems to select private players. We also advise governments on post-award activities including financial closure and project management. For more details contact: Abhaya Krishna Agarwal Partner- Public Private Partnership (PPP), Transaction Advisory Services, EY Tel: abhaya.agarwal@in.ey.com

3 The EY Team has been involved in a very prestigious project undertaken by the Ministry of Agriculture & Farmer Welfare, Government of India (GoI) namely National Agriculture Market (NAM). I have been associated with the project as the Joint Secretary of the Ministry of Agriculture & Farmer Welfare since its conceptualisation. The EY team has demonstrated deep understanding of the subject and deployed a strong and effective team for the project. Their professional, analytical and timely approach to the delivery is well appreciated. Shri Sasidhar K Srinivas Joint Secretary Ministry of Agriculture & Farmer Welfare Government of India 3 Signpost, EY newsletter for the Government and Public Sector

4 Signpost, EY newsletter for the Government and Public Sector 4 Supporting Jaipur Nagar Nigam in preparing Smart City Proposal under the Smart City Mission of Government of India Conceptualizing a Smart City plan across different scales of implementation with detailed interventions across domains in a relatively small area of the city (Area Based Development) and also providing one digital solution benefitting the entire city (Pan City Solution), was a challenge. EY s ability to think across domains, adapt technology capability to challenges typical to the city, and fuse domain understanding with digital systems helped the client in preparing a winning proposal, which was adjudged as the third-best city proposal among 97 other cities. Overview and challenges The Smart City Mission of Ministry of Urban Development (MoUD), Government of India is an ambitious program focused on India s rapid urbanization. The key objective of the mission is to promote economic growth, strengthen governance and improve quality of life of urban residents by enabling local development and harnessing technology as means to create smart outcomes. For the first time, MoUD is using a challenge or competition method to select cities for funding under the Smart City Mission, which is a paradigm shift from the conventional Detailed Project Report (DPR) driven approach. The MoUD, along with administration of all states and UTs identified 98 cities, which were to compete among each other and get funding from the Government of India and start implementation of Smart City projects in the first round this year. The Smart City Proposal, comprised preparing detailed plans for two levels of interventions, i.e., (a) Overhaul/upgrade of core infrastructure elements in a relatively smaller area within the city Area Based Development and (b) Intervention mostly using technology to benefit the entire city Pan City Solution. The cities had freedom to adapt strategy of retrofitting, redevelopment or greenfield or any combination arsing between them. The Smart City Proposal had to be prepared depending on the level of development, willingness to change and reform, available resources and aspirations of the city residents. The cities were given a tight deadline of 100 days to prepare a Smart City Proposal. Support and intervention EY along with its consortium member assisted Jaipur Nagar Nigam in preparing the Smart City Proposal according to the Ministry of Urban Development (MoUD) guidelines under the Smart City Mission. Our scope involved helping the city formulate a vision, identify key areas of intervention, frame solutions, define key performance indicators for measuring outcomes of the targeted interventions. The EY consortium formulated a proposal with extensive inputs from citizen consultation with plans focusing on (a) improving quality of life for Jaipur s citizens, (b) revitalizing inner-city economy and (c) elevating the city s position as a best-in-class tourist destination. The strategy adopted was to transform the inner-city core of the Walled City area as a Smart Heritage/Tourism district with focus on enhancing overall experience of tourists through adaptive reuse of its heritage buildings, improved urban design, multi-modal connectivity and effective last mile access to basic infrastructure. At a city-wide level, it was proposed to integrate all modes of public transport; recommended common fare smart card for transport and tourist entry, journey planning mobile apps, operations integration and intermediate public transport integration. Furthermore it was proposed to assist the aim of being a zero waste city, smart solutions were conceptualized and incorporated to improve operational efficacy of waste collection, transportation and disposal; apart from engaging citizens and incentivising recycling of waste using digital tools. Result and impact According to the format laid out by the MoUD, the proposals submitted by all the 97 cities were assessed by independent evaluation committee comprising experts from various domains of urban development, governance, technology, finance etc. This evaluation committee ranked Jaipur Smart City Proposal as 3rd best (3rd rank) among the 97 cities. EY s Smart City Services provides a full range of services to city administration / private sector developers on urban domain, financial and ICT consultancy services right from project ideation stage through project implementation to post implementation support. For more details contact: Shrinivas Kowligi Partner Transaction Advisory Services, EY Tel: shrinivas.kowligi@in.ey.com

5 5 Signpost, EY newsletter for the Government and Public Sector

6 Signpost, EY newsletter for the Government and Public Sector 6 Project Management Advisory to Ministry of Tourism for their flagship scheme Swadesh Darshan Swadesh Darshan scheme is a flagship scheme of the Ministry of Tourism, Government of India for integrated development of tourism circuits around specific themes to enrich tourist experience and enhance employment opportunities. A team from EY has been supporting the Ministry of Tourism in this endeavour to develop theme based tourist circuits across all the 30 States and 6 Union Territories. Overview and challenges Having recognized India s rich natural, cultural, historical and religious heritage, which holds immense potential for tourism, in 2015 the Government of India launched Swadesh Darshan, a scheme that promotes development of theme-based tourist circuits across the country. This scheme is aimed at establishing theme-based tourist circuits on the principles of high tourist value, competitiveness and sustainability across all 30 states and 6 Union Territories (UTs). Under this scheme integrated and synergised efforts of all stakeholders are mobilised to conceptualize circuits, create detailed perspective plans, facilitate approvals and monitor the sanctioned circuits. The total budget outlay for this scheme for is INR7 billion. The Ministry of Tourism has appointed EY as the Programme Management Consultants for the Swadesh Darshan Scheme. As part of this mandate, EY has supported the convergence of various government schemes, coordinated with international funding institutions and has developed a robust monitoring and evaluation framework articulating KPIs/responsibilities of multiple stakeholders involved in delivering the expected outcomes of this scheme. The EY team has successfully developed an inclusive approach to ensure maximum engagement of multiple stakeholders both at the Centre and state level. Support and intervention The EY team has played a pivotal role in formulating plans for 39 theme-based circuits across the country of which 19 projects have received financial sanction and the balance 20 projects are in the pipeline. EY has deployed a multidisciplinary team that has been advising the Ministry of Tourism on identification and conceptualizing of theme-based tourism circuits. The team has been developing detailed plans that include identification of gaps in infrastructure amenities and related skills, articulation of strategy to address these gaps, coordination and consultation among central, state and local agencies, project structuring, financial closure for PPP and other projects. The team has developed templates for formulation of detailed projects reports (DPRs), design manuals and monitoring framework to put these projects on fast track under the Swadesh Darshan scheme. EY, being the knowledge partner to the Ministry, has been conducting sensitization workshops with state governments across the country, to create awareness of the approval Result and impact Till date EY has supported the Ministry to achieve its mandate to accord financial sanction for 19 projects under seven categories averaging around INR0.85 billion for a circuit in FY These projects are located across 19 states. Each proposed circuit will ensure equitable development across the country especially in the low income states/ UTs. Developing these 19 projects will result in creating more than 25,000 direct/indirect jobs in these states/ UTs over the project implementation period of three to four years along with an enhanced investment potential of approximately INR50 billion for the private sector. EY s Urban Development Services provides a full range of services in the urban infrastructure development domain, financial and consultancy services right from project conceptualization stage through project implementation to post implementation and transaction advisory services. For more details contact: Umar F Khan Director Transaction Advisory Services, EY Tel: umar1.khan@in.ey.com

7 The Swadesh Darshan Division in the Ministry of Tourism, Government of India has been associated with the EY team under the leadership of Umar Farooq Khan, Team Leader since July The team has demonstrated a strong and effective work environment for the implementation of scheme and their professional,analytical and timely approach to the delivery has been very well appreciated. Bharti Sharma Assistant Director General Swadesh Darshan Ministry of Tourism, Government of India 7 Signpost, EY newsletter for the Government and Public Sector

8 Signpost, EY newsletter for the Government and Public Sector 8 Advisory Services for Civil Identity Management with the Asian Development Bank With civil identity systems becoming integral to the global development agenda, the Asian Development Bank engaged EY to provide strategic direction to take the ID for development agenda forward in the Asia-Pacific region. With multiple initiatives underway, this partnership has a significant impact on the region. Overview and challenges The transformational potential of digital identification for development is gaining significance globally because of its ability to enable a wide range of development outcomes tracking service delivery, enabling a digital economy and financial inclusion, delivering disaster relief, empowering women. Identity for Development (ID4D) is gaining prominence in the global development agenda, with a dedicated initiative by the World Bank and a stated UN Sustainable Development Goal. With the growing importance of the promised development outcomes in the Asia-Pacific region, EY was engaged by the Asian Development Bank (ADB) to provide strategic direction for taking the ID4D agenda forward in Asia. Support and intervention The ADB engaged EY in multiple initiatives to augment its capabilities toward the ID4D agenda. In order to develop an understanding of ID systems in the region, EY conducted a first-of-its-kind pan-asia benchmarking assessment of ID Maturity. Additionally, as part of this assessment, EY helped the ADB structure a strategic roadmap for providing technical assistance on ID in the region. EY also played a vital role in supporting the ADB with technical assistance to specific governments in the region. In partnership with the ADB, EY guided the Royal Government of Cambodia in evaluating ID Management systems for their newly formed Ministry of Identity. EY also assessed a newly proposed ID Management system in the Philippines, providing the government valuable insights before they invested in passing legislation to fund the system. Result and impact The Technical Assistance provided by EY has received high praise from the client. The Royal Government of Cambodia found the inputs to be of great value and has engaged EY in a separate engagement to plan the roll-out and implementation roadmap of their new ID system. Similar talks are underway with other governments in the region. The ADB has also extended its engagement with EY to deepen the integration of ID into ADB s ongoing projects and strengthen its capabilities on ID Management. EY s Identity Management Services (IDM) Services comprise end-to-end solutions ranging from planning and visioning of national ID programs, developing program management strategies, preparing implementation roadmaps, developing business models and revenue streams and service landscaping for adoption and usage of ID-linked services. For more details contact: Thampy Koshy Partner- Advisory Services, EY Tel: t.koshy@in.ey.com Furthermore, in order to promote the ID4D agenda with relevant stakeholders, EY and the ADB organized workshops and conferences in the region to assist specific governments and enable knowledge-sharing on the benefits of ID in various sectors of development.

9 The EY team was associated with the ADB for the regional study of ID for Development in Asia and the Pacific. The team demonstrated an excellent understanding of the topic, deep sense of commitment and a high quality delivery. We are happy with our association with EY. Seok Yong Yoon Senior Public Management Specialist Asian Development Bank 9 Signpost, EY newsletter for the Government and Public Sector

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