Report of the Working Group

on

Information Technology Sector

Twelfth Five Year Plan

(2012 – 17)

Government of IndiaMinistry of Communications & Information Technology

Department of Information Technology

Twelfth Five Year Plan

(2012 – 17)

Information Technology Sector

Government of IndiaMinistry of Communications & Information Technology

Department of Information Technology

Foreword

Information Technology sector has been one of the key drivers for fasterand inclusive growth in the Eleventh Five Year Plan. It has contributedimmensely to the development of Indian economy. India has become a globalpower house in software and software services sector. Over the years variousinitiatives have been taken in the Information Technology sector to fosterinnovation, improve delivery of e-Services to citizens and bring about profoundchange in the way business is conducted and the way Government works.

Information Technology has tremendous potential for the future of India.In view of the overall priorities of the Government in the 12th Five Year Plan afocused and coordinated push in the IT sector during 12th Plan period will helpIndia achieve faster, sustainable and more inclusive growth. Accordingly thevision and mission for IT sector for the Twelfth Plan will be on e-Developmentof India through a multi pronged strategy of e-Infrastructure creation to facilitateand fast track e-governance, promotion of Electronics hardware manufacturing& Information Technology – Information Technology Enabled Services (IT-ITeS)Industry, providing support for creation of Innovation / Research & Development(R&D), building knowledge network and securing India’s cyber space.

In the context of preparation of the Twelfth Five Year Plan (2012-17), theGovernment has constituted a Working Group on Information Technology sectorto make recommendations on the various policy matters to formulate the TwelfthFive Year Plan for Information Technology Sector.

This report is the result of efforts of the Members of the Working Groupdrawn from a cross section of the IT community and seven specialized, subjectspecific Sub-Groups.

I would like to thank all members of the Working Group and Sub-Groupsfor their valuable inputs and officers of Economic Planning Division of DIT forpreparing this Report.

R. Chandrashekhar,Chairman – Twelfth Plan Working Group

on Information Technology &Secretary, Department of Information Technology

Preface

In the context of the formulation of Twelfth Five Year Plan (2012-17) forCommunication and Information Sector, the Planning Commission hadconstituted a Working Group on Information Technology under the Chairmanshipof Secretary, Department of Information Technology vide O. M. No. M-13040/29/2011-CIT&I, WG (DIT), dated 21st June, 2011. The Working Grouphad 37 Members drawn from various Government Departments andOrganizations, Industry Associations, Academia and Industry.

The Terms of Reference of the Working Group are given in the Appendices.For getting a wider participation from different Industry Sectors, IndustryAssociations and Academia, Experts and other Intellectuals, the following sevenSub-Groups were constituted:

1. e-GovernmentChairman – Shri Rajeeva Ratna Shah, Ex-Secretary, Government of India

2. e-LearningChairman – Prof. N. Balakrishnan, Associate Director, IISc, Bangalore

3. e-SecurityChairman – Shri N. Sitaram, Distinguished Scientist & Former CC(R&D), DRDO

4. e-Industry (Electronics Hardware Industry)Chairman – Shri Ajai Chowdhry, Chairman, HCL Infosystems Ltd.

5. e-Industry (IT-ITeS Industry)Chairman – Shri Som Mittal, President, NASSCOM

6. e-Innovation / R&DChairman – Prof. Ashok Jhunjhunwala, IIT-Madras

7. e-InclusionChairman –Shri Kiran Karnik, Ex-President, NASSCOM

The Terms of Reference and Composition of various Sub-Groups aregiven in the Appendices of the Report. The reports of the Sub-Groups areincluded in this Report.

CONTENTS

1. Executive Summary 1

Sub – Group Reports

2. e-Government 8

3. e- Learning 56

4. e-Security 95

5. e-Industry (Electronics Hardware) 109

6. e-Industry (IT-ITeS) 163

7. e-Innovation / R&D 192

8. e-Inclusion 238

9. Appendices 258

Page No.

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Executive Summary

The global Information Technology sector has made a remarkable progress in thelast decade. It has transformed the world, enabling innovation and productivity increases,connecting people and communities, and improving standards of living and opportunitiesacross the globe. While changing the way individuals live, interact, and work, IT has alsoproven to be a key precondition for enhanced competitiveness and economic and societalmodernization, as well as an important instrument for bridging economic and socialdivides and reducing poverty.

The pace of technological advance is accelerating and ICT is increasinglybecoming a ubiquitous and intrinsic part of people’s behaviours and social networks aswell as of business practices and government activities and service provision. Thesetransformations will continue to move human progress forward by further leveraging IT’spositive social, political, and economic impact on government, enterprise, and civil societyalike.

Global sourcing trends

Worldwide technology products and services related spend is estimated to reachUSD 1.6 trillion in 2010 with emerging verticals and emerging geographies, in addition toUS, driving the growth. IT services spend increased by 1.4 per cent in 2010, within whichIT outsourcing grew by 2.4 per cent. Within IT outsourcing, global sourcing grew by 10.4per cent in 2010, validating the industry’s integral position in service delivery chain.

Global Electronic Industry trends

Worldwide, the electronics industry is one of the most flourishing and extremelydiversified sectors, growing at a rapid pace with the invention of innovative technologiesand growing customer inclination towards electronic goods and services. The industry hasbeen experiencing phenomenal and remarkable changes over the years, and is beingdistinguished with other industries by way of technological developments. The keysegments of the electronic industry are electronic components industry, computer andoffice equipments, telecommunications, consumer electronics and industrial electronics.

Production and Exports

World electronics production is estimated to be US $ 1.5 trillion in 2009 andWorld Electronics Exports are estimated at US $ 1.3 trillion in 2009. Telecom and dataprocessing equipments are the two largest segments accounting for 25%, and 21%,respectively, of the total world electronics production in the year 2009. Industrial andmedical electronics accounted for 18% share, and audio-video equipments accounted for15% share in world production of electronics. Automotive (8%), aerospace & defence(7%), and home appliances (6%) are other sub-sectors in electronics production. Until2013, the total word electronics production is expected to grow at a CAGR of 2.7%.

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Indian IT-BPO performance

The Indian IT-BPO sector is estimated to aggregate revenues of USD 88.1 billionin 2010-2011, with the IT software and services sector (excluding hardware) accountingfor USD 76.2 billion of revenues. During this period, direct employment is expected toreach nearly 2.5 million, an addition of 240,000 employees, while indirect job creation isestimated at 8.3 million. As a proportion of national GDP, the sector revenues have grownfrom 1.2 per cent in 1997-1998 to an estimated 6.4 per cent in 2010-2011. Its share of totalIndian exports (merchandise plus services) has increased from less than 4 per cent in1997-1998 to 26 per cent in 2010-2011.

The major findings of the seven Sub- Groups constituted for formulation of 12th

Five Year Plan are as under:

e-Government

The National e-Governance Plan (NeGP) with a vision to make all Governmentservices accessible to the common man in his locality, through common service deliveryoutlets, and ensure efficiency, transparency, and reliability of such services at affordablecosts is an initiative of the Government of India. NeGP is a program where theDepartment of Information Technology plays the role of a catalyst while the actualimplementation of the projects is with the respective Ministries and Departments. Underthe programme robust e-infrastructure is being created to facilitate deployment of ICTsolutions by various Departments and state Governments. Besides, there are a number ofMission Mode Projects (MMPs) which have a high citizen interface. Significant progresshas been made in the implementation of the core infrastructure and also in most of theMission Mode Projects. 27 SWANs and 14 State Data Centres are already operational.The State Service Delivery Gateways (SSDGs) have been implemented in 2 States. Formaking public services available to citizens on anytime, anywhere basis, Department ofInformation Technology (DIT) have established around 96,000 Common Services Centresacross the country as web enabled outlets to access e-Governance services. Under theCapacity Building Scheme, the State e-Mission Teams (SeMTs) have been setup in 30States and over 700 Government officials have been trained in STeP trainings. Standardshave been laid down in the areas of open standards, biometric standards, metadata & datastandards, localization and Language Technology Standards etc. e-District project hasbeen implemented in 20 districts. Significant progress has also been made in delivery ofservices identified under various Mission Mode Projects.

In the twelfth Five Year Plan, Department of Information Technology proposes tostrengthen and extend the existing core infrastructure projects to provide more horizontalconnectivity, build redundancy connectivity, undertaken energy audits of SDCs etc. Thecore infrastructure including fibre optic based connectivity will be leveraged andadditional 150,000 CSCs will be setup to create the right Governance and service deliveryecosystem at the Panchayats. The high penetration of mobiles will be leveraged to deliverboth informational as well as transactional Government services on mobile phones.

In order to deliver all Government services in electronic mode so as to make theGovernment process transparent, citizen centric, efficient and easily accessible, DITproposes to introduce and implement the Electronic Delivery of Services (EDS) Act. In

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order to accelerate adoption of e-Governance and to reduce the “cycle time” of e-Governance project implementation, DIT plans to undertake extensive business process re-engineering, to create an enterprise architecture framework, to create shared platforms andto create a National Application Store.

The wide spread use of ICT requires that Government takes adequate measures topromote ethical use of data and technology and create a safe and secure cyber world. DITalso plans to reduce the social and economic disparities existing due to informationasymmetry, accessibility and ability to utilize the information through the use of ICT. DITintends to assist all Central and State Government Departments in better targeting thedelivery of social welfare schemes to the beneficiaries’ through adoption of ICT inGovernment functioning.

NeGP will also be expanded to include new MMPs in the areas of Health,Education, PDS, Posts, Skill up-gradation, integrated system of crime to adjudication tojail, Safety & Security against crime, RTI etc.

In order to promote innovation in e-Governance and mobile Governance and forlarge scale development of e-Governance applications, DIT proposes to institute an e-Governance innovation fund. DIT also intends to create an open data platform andinstitutional structure that would enable all public entities to share non-classified data forproductive use by the citizens. DIT intends to increase the awareness about e-Governance,assess the impact of e-Governance on citizens and to create mechanisms for a proactivecitizen engagement.

Lastly, DIT plans to augment internal ICT and Capacity Building efforts bycreating appropriate institutional infrastructure, by extending the existing CB scheme tothe Central Government entities and through structured e-Governance training,certification and online courses for Government employees at all levels.

e- Learning

In order to sustain India’s lead in IT-ITES sector and to capture new opportunitiesin the electronics hardware industry, there is a need to address the gaps in the availabilityof skilled and technically trained human resources for meeting present and futurerequirements of the sector.

e-Learning mode and the related tools provide a platform for enhanced learning,cost effective delivery, flexibility of learning at the convenience of the learner. LanguageTechnology offer universal access to information and services to the masses in their ownlanguage. It is imperative that tools for information processing in local languages aredeveloped and made available for wider proliferation of ICT. This would benefit thepeople at large and thus pave the way towards ‘Digital Unite and Knowledge for All’ andbridging the Digital Divide.

Creation of e-infrastructure for e-Learning is a very important aspect, essential topromote this mode of learning that can also supplement the traditional method of learning.In order to work out a road map to generate human resources for the electronics and ICTindustry using ubiquitous learning models. A holistic eco system will be but is for the

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generation of skilled population which can leverage the use of knowledge effectively forthe economic and social development of the country.

There is a need to integrate formal and non-formal system of education by introducing theconcept of Virtual University or Central University with multiple campuses and blendedlearning mode.

As a part of skill development initiatives, the capacities of DOEACC and C-DAC wouldbe enhanced to generate 10 million skilled manpower by the year 2022 starting from thediploma level right up to doctoral level and in line with the emergingindustry/market/society needs. The Central Government scheme for providing financialassistance for setting up of ICT Academy in each State/UT under PPP mode by respectiveState Governments/UTs along with industry/industry associations.

e-Security

Cyber security requirements are dynamic in nature and change with the threatenvironment. The cyber security threats emanate from a wide variety of sources andmanifest themselves in disruptive activities that target individuals, business, nationalinfrastructure and Governments alike. Their effects carry significant risk for public safety,security of nation and the stability of the globally linked economy as a whole. As such,cyber security threats pose one of the most serious economic and national securitychallenges. The initiatives taken by the Government so far have significantly contributedto the creation of a platform that is capable of supporting and sustaining the efforts tosecurity the cyber space. However, due to the dynamic nature of cyber threats, theseactions need to be continued, refined and strengthened consistent with emerging threatsand evolving technology scenario.

Cyber Security strategies proposed to be adopted during the Twelfth Five YearPlan include (a) enhancing the understanding with respect to factor such as dynamicallychanging threat landscape, technical complexity of cyber space and availability of skilledresources in the area of cyber security, (b) focus on proactive and collaborative actions inPublic-Private Partnership, (c) enhancing awareness and upgrading the skills, capabilitiesand infrastructure, (d) improving interaction and engagement with various keystakeholders, (e) carrying out periodic cyber security mock drills to assess thepreparedness of critical sector organizations to resist cyber attacks and improve thesecurity posture and (f) supporting and facilitating basic research, technologydemonstration, proof of concept and test bed projects in thrust areas of cyber securitythrough sponsored projects at recognized R&D institutions. Six focus areas have beenidentified for implementation of the Cyber Security activities. These are: Enabling LegalFramework, Security Policy, compliance and Assurance, Security R&D, Security Incident– Early Warning and Response, Security awareness, skill development and training andCollaboration.

The target deliverables in respect of each of the focus areas have been identified.The major target deliverables include suitable amendments to existing legal framework,enhancement of security audit, assessment and certification infrastructure, enhancement ofIT product technical security assurance mechanism, setting up of Centres of excellence inselect areas.

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DIT will act as a nodal agency to implement the cyber security activities planned for theXII Plan. Public private partnership (PPP) arrangement will be explored in the relevantareas.

e-Industry (Electronic Hardware)

Electronics is a flagship sector of strategic importance. With the demand forelectronics hardware expected to rise rapidly, India has the potential to become anelectronics hardware manufacturing hub and contribute significantly to the increase in ourGDP, employment and exports. Electronics Hardware Manufacturing continues to be athrust area for the Government. The vision is to establish India as a leading globaldestination for electronics system design and manufacturing (ESDM). The objectiveduring the Twelfth Five Year Plan (2012-2017) is to achieve domestic production of aboutUSD 122 Billion by 2017 by creating an industry friendly policy framework andecosystem for the ESDM sector. This is expected to generate exports of about USD 20Billion, direct employment of about 3.5 Million and indirect employment of 6.5 Million.

The aim is to create a level playing field and an enabling environment for theindustry to compete globally. This requires several initiatives including setting up of asemiconductor fab, providing support to manufacturing across the value chain, providingworld class infrastructure through Electronics Manufacturing Clusters, supporting R&Dand innovation by setting up of Electronics Development Fund. Besides, efforts to institutea mechanism for mandating compliance to standards for electronics goods,communications and brand development, marketing of India as an investment destinationand human resource development are some of the other initiatives which need to bepursued. There is a need to set up a National Electronics Mission in the Twelfth Five YearPlan.

e-Industry (IT-ITeS)

Information Technology/Information Technology Enabled Services sector(IT/ITeS) has played a vital role in acquiring a Brand Equity for the nation and hascontributed immensely to the increase in the GDP, employment and exports. The IT/ITeSexports have grown from a mere $ 4.0 billion in 1999-2000 to $ 31.2 billion in 2006-07and to a staggering $59 billion in 2010-11. This sector accounts for over 5% of India’sGDP, and employs 2.5 million professionals directly and another 8.3 million peopleindirectly. A majority of the Fortune 500 and Global 2000 corporations are sourcingIT/ITeS from India. Further most of Capability Maturity Model (SEI-CMM) Level 5 firmsare based in India.

India continues to be a premier destination for the global off-shoring market of IT-ITeS, accounting for almost 55% in 2010 as compared to 49% in 2005. India has emergeda dominant player in global IT services outsourcing with increase in India’s share to 70%in 2010 from 52% in 2005. Although India’s share in BPO sourcing market has declinedfrom 45% in 2005 to 34% in 2010 but continues to be the leader in this space. China,Philippines, Vietnam, Poland, Hungary, Mexico, Brazil, Egypt are emerging ascompetitive locations. Another important factor to be considered is that due to its nature ofbeing less capital intensive and flexibility in operations, IT/ITeS industry can be relocatedin a very short time. This increases to almost 50 locations which present a huge challengeto India’s success story.

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In the Twelfth Five Year Plan it is proposed to sustain IT-ITeS industry’s growthmomentum by building an enabling policy environment, support small and mediumenterprises and provide competitive edge through fiscal benefits, innovation fund andincubation, build world-class infrastructure in identified tier II & tier III cities to createnew hubs for industry development as potential centres of excellence and to address thegap of employability through skill development initiatives.

e-Innovation / R&D

There is a high correlation between investment in innovation in and actual benefitsflowing from it to the society. In India, in the post liberalization era, due to opening up ofthe economy, almost all new technology solutions came either through direct import orthrough assembly with large amount of imported components or modules. However, thecountry is largely dependent on innovations done elsewhere. Some institutions andindustries are doing innovative works which are at nascent stage. These need to be carriedforward and increased manifold. It is imperative that research and innovation initiatives inthe area of Electronics & IT at various institutes are linked to societal and industry needsdirectly. Therefore, the overall objective during the 12th Plan should be to make India ahub of research, development and innovation in the area of IT and electronics leading tocommercialization so as to contribute to the overall socio-economic growth of the country.

Overall achievement in the 11th Plan indicates that reasonable amount of R&Dinfrastructure, technology development and also some industry involvement have beenachieved in various areas like Nanotechnology, Microelectronics, High PerformanceComputing/Grid Computing, Industrial Electronics, Free/Open Source Software,Broadband and Wireless Sensor Network, RF/Microwave Electronics, etc. All theStrategic Departments of the country have also benefited through the R&D work carriedout in some of DIT’s R&D societies. However, during this course some major challengesalso have been faced. These include inadequate R&D spending, inadequate skilledmanpower for R&D, R&D fund management issues, lack of incentives for usingindigenously developed technology etc. Some of these challenges need to be addressedvigorously during the next Plan.

Innovation promotion and nurturing entrepreneurs need to be the major area ofthrust during the 12th Plan. Activities are proposed at all 4 stages of innovation, i.e., ideastage, innovation phase, incubation phase and business acceleration phase. Involvement ofprivate sector in R&D/innovation activities is expected to play a major role during the 12th

Plan to fulfill the objectives of the proposed Electronics Development Fund (EDF).Certain “quick-hit” initiatives, as short-term R&D need to be taken up to identify anddevelop products which may not be futuristic in nature but have immediate applications innext 2 years’ time. This is expected to kick-start a positive reinforcement cycle motivatingindustry, policy makers and the market.

Considering the achievements, the R&D activities undertaken during the 11th Planneeds to be accelerated in the 12th Plan for greater industry involvement andcommercialization and also to include some new areas like initiatives on Next GenerationComputing Systems/India Microprocessor Development Initiatives, Cloud Computing, afew demonstration projects (like Smart Grid, Solar Village, Indian Satellite Phone) andspecial initiatives focused for students in the area of VLSI Design. The report has alsorecommended establishment of a Centre of Excellence on Sensors, specific hardware

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fabrication and design houses/services to help students and SMEs in their developmentendeavor. Thus the main strategy for the 12th Plan would include widening the R&D base,promoting R&D for manufacturing and creation/augmentation of R&D infrastructure.

e-Inclusion

Inclusiveness is a critical element in the strategy of the IT Sector in Twelfth Fiveyear Plan. This is to be achieved by ensuring that growth is broad-based and is combinedwith programmes aimed at overcoming deficiencies in critical areas, which affect largenumbers of the vulnerable sections of our population, particularly the Scheduled Castes(SCs), Scheduled Tribes (STs), women, and the minorities. The strategy is to deal withthese deficiencies through programmes aimed at providing e-accessibility,e-competences, for better access to health, education, and other essential services andprogrammes of livelihood support.

In order to achieve the vision of e-Inclusion in Twelfth Five year Plan an enablingand empowering strategy along with intervention and a focus on specified target groupsand areas is proposed. The target groups identified for e-Inclusion are SC, ST, minorities,Gender, differently abled, senior citizens and BPL households. The target areas are NorthEast Region; SC and ST concentration areas, the backward districts of India, etc. It isproposed to initiate key programmes and projects in identified components of e-Inclusionas part of a major government programme modelled along the lines of NeGP. A studyteam will be constituted to examine and set the monitorable targets in consultation with allthe stakeholders. It will also identify ICT indicators for e-Inclusion and propose policy andprogramme evaluation mechanism for the projects in the 12th Five Year Plan.

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e-Government

1. Introduction

The country has been able to register an extremely impressive economic growth,

however, the benefits of economic growth have not percolated down to each citizen.

This requires structural changes in the way public services are delivered so that

reliability, efficiency, accountability and transparency can be ensured. ICT and

especially e-Governance offers a huge opportunity to bring in these changes without

creating brick and mortar institution at village / Panchayat level

e-Governance provides a sound strategy to strengthen overall governance. It can

not only improve accountability, transparency and efficiency of government processes,

but also facilitate sustainable and inclusive growth. e-Governance also provides a

mechanism of direct delivery of public services to the marginal segments of the society

in the remotest corners, without having to deal with intermediaries. Several successful

models have already demonstrated the power of effective service delivery through e-

Governance, both in India and other parts of the world. These need to be implemented

in a vigorous Mission Mode in a time bound manner.

National e-Governance Plan (NeGP) was approved in 2006 and a lot of area hasbeen covered under various MMPs, however, most of these MMPs were meant toimprove efficiency in those sectors which were dealing with number e.g. land records,transport, passport, corporate affairs etc. Now the time has come when e-Governanceshould be effectively used to provide quality educational service, cost efficient healthservices, skill development, financial services, agriculture related services amongstother at all citizens.

2. Current Status of e-Governance in India (XIth Plan Achievements)

2.1 Overview of the National e-Governance Plan (NeGP)

Over the past decade or so, there have been several e-Governance initiatives inthe country at the National, State, district and even block level. Some of them have beenhighly successful and are ready for replication across other States while some have notproduced the desired results or withstood the test of time. Experiences from successesas well as the failures of the various initiatives played an important role in shaping thee-governance strategy of the country. A need was felt for taking a holistic view towardsthe entire e-Governance initiative across the country. Increasingly , it was perceived thatif e Governance was to be speeded up across the various arms of government at thenational , state and local government level, a programme approach would need to beadopted, which must be guided by a common vision, strategy and approach toobjectives.

With this background, the National e-Governance Plan (NeGP), comprising of27 Mission Mode Projects (MMPs) and 8 components was formulated by theGovernment, for implementation across the country with following vision:

“Make all Government services accessible to the common man in his locality, throughcommon service delivery outlets and ensure efficiency, transparency & reliability ofsuch services at affordable costs to realize the basic needs of the common man.”

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NeGP comprises of 8 core and support components and 27 Mission ModeProjects (MMPs) encompassing nine central MMPs, eleven state MMPs and sevenintegrated MMPs. MMPs are owned and spearheaded by various line ministries. StateGovernments are responsible for implementing State MMPs, under the overall guidanceof respective Line Ministries in cases where Central Assistance is also required.

The emphasis has been to ensure Integrated & enhanced access to government services Clearly defined service levels Services at the doorstep with substantial rural outreach Increased efficiency Enhanced transparency Improved reliability Affordable cost

Considering the complexity of the Programme and the need to look at issuessuch as overall technology architecture, framework, standards, security policy, fundingstrategy, service delivery mechanism, sharing of common infrastructure etc. at aprogram level, the technical appraisal of all NeGP projects is done by DIT, prior to aproject being placed before the EFC/ CNE. For the implementation of NeGP, DIT hasbeen given mandate to create the Common and Support Infrastructure (State Wide AreaNetworks, State Data Centres, and Common Services Centres & Nation/State ServiceDelivery Gateways). DIT also has to evolve/ lay down Standards and Policy Guidelines,provide Technical and Handholding Support, undertake Capacity Building, R&D, etc.,as required, for successful implementation of various e-Governance Projects.

2.2 Current Status of e-Governance related initiatives

Significant progress has been made in the implementation of the core andsupport components under NeGP. Major achievements are highlighted below

2.2.1 State Wide Area Networks (SWANs)

The Government has approved the Scheme for establishing State WideArea Networks (SWANs) across the country, at a total outlay of Rs.3334 croreto be expended by the Department under Grant-in-Aid of Rs. 2,005 crore, over aperiod of five years. Under this Scheme, technical and financial assistance arebeing provided to the States/UTs for establishing SWANs to connect allState/UT Headquarters up to the Block level via District/ sub-DivisionalHeadquarters, in a vertical hierarchical structure with a minimum bandwidthcapacity of 2 Mbps per link. Each of the State / UT can enhance the bandwidthup to 34 Mbps between SHQ and DHQ and upto 8 Mbps between DHQ andBHQ depending upon the utilization.SWAN proposals from 34 States/UTs have been approved, with a sanctionedtotal outlay of Rs. 1972 crore from the Department. The Proposal forimplementation of SWAN in the State of UT of Andaman & Nicobar Islands hasbeen approved by the Empowered committee recently. The State of Goa hasimplemented Networks outside SWAN Scheme.

As of 31st July, 2011, the SWANs in 27 States (Andhra Pradesh,Chandigarh, Chhattisgarh, Delhi, Gujarat, Haryana, Himachal Pradesh,

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Jharkhand, Kerala, Karnataka, Lakshadweep, Maharashtra, Orissa, Punjab,Puducherry, Sikkim, Tamil Nadu, Tripura, Uttar Pradesh, West Bengal, Assam,Bihar, Madhya Pradesh, Uttarakhand, Manipur, Arunachal Pradesh andMeghalaya) have been operational . The SWANs in Mizoram and Nagaland arein advanced stage of implementation. Rajasthan has identified the NetworkOperator and implementation is underway. J&K have initiated the bid process toidentify the Network Operator for implementation. Dadra & Nagar Haveli,Daman & Diu and Andaman and Nicobar are in RFP/BOM finalization stage. Itis expected that all State SWANs would be operational by March 2012.

To monitor the performance of SWANs, the Department has mandatedpositioning Third Party Auditor (TPA) agencies by the States/UTs. As of 31st

July, 2011, 17 States i.e. Haryana, Himachal Pradesh, Punjab, Gujarat,Karnataka, Kerala, Tripura, Orissa, Maharashtra, Arunachal Pradesh, Bihar,Madhya Pradesh , Chhattisgarh, Assam, Tamil Nadu, Jharkhand and WestBengal have empanelled the TPA agencies for monitoring the performance ofthe SWAN in their respective State.

2.2.2 State Data Centres (SDCs)

The State Data Center (SDC) is being implemented across the country toprovide common IT infrastructure to host Government applications. SDC is oneof the three infrastructure pillars structured under NeGP to facilitate web-enabled Anytime, Anywhere access. SDC is conceptualized with the objectiveof providing a common enabling infrastructure to the States / UTs to consolidateservices, applications and infrastructure to provide efficient electronic deliveryof G2G, G2C and G2B services. For better and optimal utilization of the SDCinfrastructure adequate Virtualization Infrastructure, Information SecurityInfrastructure and Disaster Recovery Solutions are being provisioned.

SDC scheme was approved by the Government on 24th January, 2008with a total outlay of Rs. 1623.20 Crore (Grant in aid Rs. 581.37 Crore and ACARs. 1041.83 Crore). States were categorized into three categories Large, Mediumand Small. Within the overall scheme framework, State Specific DPRs wereprepared by the respective States/ UTs. These DPRs were approved by DIT andfunds released to the Implementation Agencies of States / UTs.

Substantial progress has been made in the SDC project. As of 31st July,2011, 13 State Data Centres have been declared operational and more than 3State Data Centres are expected to be Operational within next one month. 28RFPs have already been approved by DIT, 20 states have completed Bid ProcessManagement and DCO identified with the remaining 7 States are in Bid ProcessManagement. It is expected that all the SDCs shall be operational by August,2012.

2.2.3 Common Service Centres (CSCs)

The CSC Scheme as approved by Government of India in September2006 for setting up of 100,000+ (one lakh) internet enabled centres in rural areasunder the National e-Governance plan (NeGP) is being implemented in a PublicPrivate Partnership (PPP) mode. The Common Services Centres (CSC) areproposed to be the delivery points for Government, Private and Social Sector

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services to rural citizens of India at their doorstep. The CSC Scheme isenvisaged to be a bottom-up model for delivery of content, services, informationand knowledge, that can allow like-minded public and private enterprises -through a collaborative framework - to integrate their goals of profit as well associal objectives, into a sustainable business model for achieving rapid socio-economic change in rural India.

As of 31st July, 2011, a total of 96,163 CSCs have been rolled out inthirty two States/UTs. 100% CSCs have been rolled out in 12 (Twelve) States(Chandigarh, Delhi, Goa, Gujarat, Haryana, Jharkhand, Kerala, MadhyaPradesh, Manipur, Puducherry, Sikkim & Tripura). More than 70% of the rollouthas been completed in 13 (Thirteen) States (Assam, Arunachal Pradesh, Bihar,Chhattisgarh, Himachal Pradesh, Maharashtra, Meghalaya, Mizoram, Nagaland,Orissa, Tamil Nadu, Uttaranchal and West Bengal). In about 4 (Four) States(Andhra Pradesh, Jammu & Kashmir, Rajasthan and Uttar Pradesh)implementation of CSCs have crossed half way mark (more than 50%).However, about 4500 CSCs are non operational due to termination of theService Centre Agencies (SCAs) by the concerned State Governments. A totalof about 14,236 CSCs have been affected due to termination/ re-bidding. Due tonaxal affected and difficult areas, rollout of about 3598 CSCs have beendelayed.

The State Governments like Andhra Pradesh, Assam, Bihar, Gujarat,Haryana, Jharkhand, Kerala, Maharashtra, Orissa, Rajasthan, Tamil Nadu, UttarPradesh and West Bengal have issued Government Orders / Notifications to thevarious departmental heads / District Level authorities/ Stakeholders for use ofCSC to deliver various G2C Services. The various G2C Services offered are:Agricultural services, RTI Services, NREGA MIS Data Entry service, PostalProducts, Land Records, Issuance of Birth and Death Certificates, UtilityServices, Electoral Services, Transport Services, Grievances, e-District Servicesetc. Financial Inclusion has started in the States of Jammu & Kashmir, MadhyaPradesh and Meghalaya.

As per the CSC Scheme policy, a Special Purpose Vehicle (SPV) namedas “CSC e-Governance Services India Limited” has been incorporated under theCompanies Act 1956 on 16th of July 2009 with an objective of being the singlepoint of contact for the delivery of citizen centric services.

Connectivity

Connectivity has been provided to 69,574 CSCs out of which 18,554CSCs are connected through BSNL as on 30th June 2011. Out of the totalconnected CSCs, 24,297 are using VSAT Connectivity, 19,116 CSCs are usingBSNL Connectivity, 10,163 CSCs are using Data Card and 15,998 CSCs areusing Connectivity through other technology like WLL and GPRS of variousservice providers such as AirTel, Reliance and Tata Indicom. Only 185 CSCsare using Wimax Ph-1 connectivity. BSNL will connect all the CSCs byDecember 2011.

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Online Monitoring Tool Status

As of 30th June 2011, Online Monitoring Tool (OMT) has beeninstalled/ registered in 57,423 CSCs covering twenty seven States and user IDhas been created/ commissioned for 78,529 CSCs.

Status on G2C services

The State Governments like Andhra Pradesh, Assam, Bihar, Chhatisgarh,Haryana, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Orissa,Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal have issuedGovernment Orders/ Notifications to the various Departmental heads/ Districtlevel authorities/ stakeholders for use of CSC to deliver G2C services. In someStates the CSCs are being utilized to collect data for various governmentschemes for MIS , conduct of survey, digitization of records, collection of utilitybills and other related activities .

Leveraging CSCs for capturing MIS and delivery of various services ofMinistries of Rural Development, Panchayati Raj, Health and Education is underactive consideration of the Government. An Inter-Ministerial Co-ordinationCommittee has been constituted to evolve mechanism and finalize modalities ofexpanding Bharat Nirman CSCs. The Committee has finalized the rates ofservices to be delivered through CSCs.

Leveraging CSCs to capture demographic and biometric details ofcitizens of India for National Population Register (NPR) is also underconsideration of Ministry of Home Affairs.

Status on B2C Services

The B2C Services like e-Learning, Financial services, Telecom – MobileCharging/ DTH Recharge, Utility services, Employment services, Railway -Ticketing, Matrimony Services, UTI-Pan Card Processing etc. are beingoffered/identified through the CSCs. State Bank of India , Punjab National Bankand other commercial banks have started using CSCs for delivery of financialproducts and services including banking and insurance

CSCs are providing the e learning services for all the sections of thecommunity at the village level meeting their specific needs

2.2.4 Electronic Form Application through State Portal, State Service DeliveryGateway (SSDG)

This project entails delivery of the services through Common ServiceCentres (CSCs) by leveraging the common infrastructure (SWAN, SDC etc.).The project also envisages the development of the applications and infrastructurerequired for deployment of State Portal and State Service Delivery Gateway(SSDG) for the State. This will enable citizens to download forms and submittheir applications electronically with help of “electronic forms” hosted on theState Portal (SP) and routed through a common services gateway(SSDG/NSDG). Thus, NSDG/SSDG is a middleware routing mechanism basedon standards which provides seamless interoperability and exchange of data

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across heterogeneous applications. This important initiative facilitatingElectronic Service Delivery will provide significant benefits to the citizensespecially in the form of a single gateway to citizen for service delivery.

The processing at the backend at the department may initially continue ina manual mode. Gradually as the MMPs and other State applications getimplemented and the backend gets computerized, the functionality of theservices provided will get enhanced and eventually all services that can beprovided online could be accessible via State Portal in integrated fashion.

Objective of the e-Form, State Portal & SSDG scheme is to ensure the following Providing easy, anywhere and anytime access to Government Services

(both Informational & Transactional) Reducing number of visits of citizens to a Government office /

department for availing the services Reducing administrative burden and service fulfilment time & costs for

the Government, Citizens & Businesses Reducing direct interaction of citizen with the Government and

encourage ‘e’-interaction and more efficient communication throughportal

Enhancing perception & image of the Government and its constituentDepartments

Promotion of uniform web interface across Government and build insynergies with the National Portal of India (NPI) using the NationalService Delivery Gateway

Delivery of services through Common Service Centres (CSCs) byleveraging the common infrastructure (SWAN, SDC etc.) anddevelopment of the applications and infrastructure required fordeployment of State Portal and State Service Delivery Gateway (SSDG)for the State.

Publishing the static data and all information of the State departments inline with guidelines for necessary integration with NPI

At present project proposals have been approved for 31 States/UTs andrequisite funds have been released. Around 24 States/UTs have floated the RFPfor the selection of the Implementing Agency for the project. Out of these 24RFPs, 17 States/UTs have completed the bid process and are in the process ofissuing/issued the Letter of Intent (LoI) to the selected Agency. 9 States/UTshave already started project implementation and the remaining would shortlystart implementation. Two (2) States (Goa & Tamil Nadu) have gone-Live withfew services to citizens.

2.2.5 Capacity Building

The Capacity Building Scheme under the National e-Governance Plan(NeGP) was approved in Jan, 2008 for 3 years and has been extended for afurther period of 2 years. The CB scheme aims to build adequate capacities inthe Government at all levels right from the decision makers to Panchayat levelsin order to successfully roll out the National e-Governance Plan .

Under the CB Scheme, State e-Mission Teams (SeMTs) have been setupin 30 States. Training and sensitization of the Government officials has been a

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critical focus area and it forms one of the major components of the scheme. Awide range of training programmes like Leadership Meets, Specialized Trainingfor e-Governance Programme (STeP), CIO’s Programme, Orientationworkshops and other training modules have been rolled out to up skill Govtofficials at all levels. At political level Leadership Meets have been conducted in18 States so far and other States are in the pipeline. STeP Trainings have beenrolled out Pan India to upskill officials on various aspects of e-Governance likee-Governance Project Life Cycle, Government Process Reengineering, BusinessModels and PPP for e-Governance project, Change Management, RegulatoryFramework for e-Governance, Information Security Management, EnterpriseApplications and open source for e-Governance, Project Management andAssertiveness, Communication & Presentation skills. Over 700 Govt. Officialshave been trained under STeP Trainings. A CIO plan is also being rolled out tostrengthen and create a cadre of in-house expert resources to lead and implemente-Governance in India at all levels of Government.

2.2.6 Standards

Standards in e-Governance are a high priority area, which will ensuresharing of information and seamless interoperability of data and e-Governanceapplications under NeGP. An Apex body has been constituted under thechairmanship of Secretary, DIT with senior representatives from theGovernment, NASSCOM, and Bureau of Indian Standards (BIS) etc. with amandate to approve, notify and enforce Standards/Guidelines formulated byvarious Working Groups and to oversee that they are in accordance withinternational practices in this regard.

Policy on Open Standards: Government is promoting the usage ofOpen Standards to avoid any technology lock-ins. In this regard, aPolicy on Open Standards has been formulated which would providea framework for the selection of Open Standards to facilitateinteroperability between systems while providing organizations theflexibility to select different hardware, systems software, andapplication software for implementing cost effective e-Governancesolutions.

Biometrics standards: Biometric Standards for Face image,Fingerprint image and Minutiae and Iris have been notified wouldenable the sharing of biometrics data by various e-Governanceapplications

Metadata & Data Standards: These define standards for person andland identification like name, address, which will ensure sharing ofinformation and seamless interoperability of data across applications

Localisation and Language Technology Standards: CharacterEncoding Standard Unicode 5.1.0 and Font Standard ISO/IEC14496-22 Open Font Format

Network and Information Security: 9 guideline documents undere-Governance Security Assurance Framework (eSAFE) forimplementation of ISO 27001

Digital Signature: Digital Signature Certificate (DSC)Interoperability guidelines will enable interoperability of DSC’sissued by various Certifying Authorities (CA). Guidelines for usage

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of Digital Signatures in e-governance applications have also beenpublished.

Quality Assurance: Quality Assurance Framework to ensure qualityin e-Governance. Two documents “Quality Assurance Framework”and “Conformity Assessment requirements” have been published.

Website Design Guidelines compliant to Web Accessibilityguidelines.

2.2.7 E-District

This project aims at providing support to the basic administrative unit i.e.“District Administration” by undertaking backend computerization to enableelectronic delivery of high volume citizen centric government services whichwould optimally leverage and utilize the three infrastructure pillars of SWAN,SDC and CSCs to deliver services to the citizen at his doorstep. Initially certainhigh volume citizen centric services are taken up and thereafter new services canbe added as the demand for more e-enabled services increase. Under this project,a set of 5 service categories are being implemented in all e-District Projects.These include (1) Issue of Certificates including birth, death, domicile, etc., (2)Social Welfare Schemes – including social welfare pensions (3) Services relatedto Revenue Court (4) Ration Card related services (5) RTI (Right toInformation) services including redressal of grievances. In addition to these 5service categories, State Governments based on the demand from citizens canchoose to include additional 5 categories of citizen services which are notcovered under any other MMP.

E-District Pilot Projects are being implemented in 41 districts of 16States of the Country, and there have been many notable successes in servicedelivery to the citizens. To give an example, in the two pilot districts of Kerala,in just over six months since the scheme has been in implementation over 1Lakh services have been delivered. The Government has also approved theScheme for National Rollout of the e-District Pilot Project with an outlay of Rs.1663.08 Crore. The guidelines regarding the National Rollout have beencirculated to the various State Governments. The various states are in theprocess of submitting the DPRs for the national rollout of the e-District MMP intheir states

2.2.8 Awareness and Communication

The success of NeGP hinges not only on accessibility and availability tothe information and various services but also on awareness regarding theProgramme, effective branding of NeGP and communication strategies thataddresses the two. Concerted effort was made to create awareness about theNational e-Governance Plan at national, state and grassroots level.NeGP Awareness and Communication (A&C) activities aim to

Build NeGP as an umbrella/ corporate brand Create awareness about e-Governance services and service delivery

points Expedite ownership/ stake of implementers into e-Governance/ NeGP

The following activities have been undertaken

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Research

a. Communications Needs Assessment exercise was carried out in June-July 2008 to gauge the practices, experiences, expectations and painareas of citizens and government officials regarding Government/ Publicservices. 2000 respondents were contacted across 10 States covering 5geographical zones: North (Haryana & Uttar Pradesh), East (Jharkhand& West Bengal), West (Gujarat & Maharashtra), South (Tamil Nadu &Andhra Pradesh), and North-East (Assam & Tripura).

b. Pre-testing of Content: Creative material for NeGP advertisements (TV,Radio, and Print) was pretested on 1200+ respondents across 5 States(Haryana, Jharkhand, West Bengal, Maharashtra and Tamil Nadu) inlocal languages.

Branding and media library

a. NeGP logo and tagline were developed to facilitate brand building,recall, and connect back to e-Governance initiatives.

b. NeGP-branded material & memorabilia e.g. Brochure, posters, mugs,bags etc. were developed

c. Media library: e-Governance-related films on subjects such asNeGP/CSCs, e-Districts, MCA21, Telemedicine/CSCs, were produced

MASS MEDIA efforts during 2007-09 constituted a single burst ofPrint, TV, and Radio advertisements

a. Print:i. NeGP Ads: Full-page ads in 13 languages were released on 11-

Jan-09 and 14-Jan-09, and a half-page ad in 13 languages wasreleased on 18-Jan-09, in 150+ newspapers each (national andregional dailies) across the Nation.

b. TV: A total of 554 spots constituting 60 second and 40 second versionsof NeGP TV commercials in 13 languages were telecast 5-15 Feb 09 (11days) on 23 TV channels

c. Radio: A total of 1727 spots, 60 seconds each, of NeGP radiocommercials in 13 languages were broadcast 5-15 Feb 09 (11 days) on38 radio stations

Rural outreach pilotRural outreach enabled direct contact with residents in 2400 villagesacross 4 States (Gujarat, Haryana, Tamil Nadu, West Bengal) and 600urban/ semi-urban slum clusters across 4 States (Gujarat, West Bengal,Haryana, Orissa), the total number of unique States being 5.

Advocacy workshops/ eventsOver 30 workshops across the country at national and State level inpartnership with state government, Industry and CSOs

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2.2.9 Citizen Engagement

As more and more projects are getting implemented under NeGP, anincreasing need has been felt for wider and deeper participation of andengagement with all stakeholders especially public at large to ensure that citizencentricity is maintained in all projects. Also, as the government is consideringenacting the Electronic Service Delivery Law, the possibility of e-Governmentprojects becoming pervasive in all domains of public services is increasinglybecoming a reality. It marks a paradigm shift in delivery of public and essentialservices – from human to technology based interfaces. The use of a technologyinterface for delivery of services throws up many challenges especially thoserelated to management of change from human interface to technology interface,adoption of a particular technology, differential access to such services etc.

To enable and support this goal, a Citizen Engagement Framework for e-Governance Projects has been developed for ministries and departments tofacilitate the voice and space for citizen participation in e-governance, especiallyfor the weakest and the most marginalised sections of society for whom the e-Governance projects are created to serve the most.

2.2.10 Assessment

Assessment of e-Governance Projects

The DIT, as part of its overall e-Assessment strategy proposes to list,identify and assess e-Governance and ICT for Development (ICT4D) projectsthat provide any measure of e-Governance services, across India, to understandthe impact, utility, sustainability, scalability and replicability of these projects.Two phases of Assessment studies have been carried out till date.These studieshelp in providing an overview of the areas in which positive or negative impactwas felt by the users (citizens and businesses) after computerization. Abenchmark has been established in key areas of impact indicating the extent ofimprovements realized in the cost of access of Government services, the qualityof delivery of services and the governance dimension in the delivery of servicesthrough computerization. The assessments are done by third parties.

During Phase I of the Assessment, which was conducted between 2007-08, Impact Assessment was carried out for three National projects (MCA 21,Income Tax and Passport Services) and three State level projects (Land Records,Property Registration and Transport) in 11 states. In the case of State levelProjects, 11 market research agencies, each of which was assigned all the threeprojects in a given state, were engaged for the study. The survey for each projectand in each state covered a sample of nearly 800 citizens for identified servicesacross the state. In order to understand degree of change, Citizens’ experience ofusing the manual and computerized modes of delivery for each service wascaptured through surveys.

During Phase II of the Assessment, which was conducted between 2009-10, projects covering four ULBs (JnNURM); collection of commercial taxes infive states and a base line survey for e-district program in five states were takenup in the 2nd phase.

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IIM Ahmedabad was DIT’s knowledge partner for these studies

e-Readiness Assessment of States and Union Territories

The Department of Information Technology and the National Council forApplied Economic Research have collaborated in producing the India e-Readiness Reports since 2003. The focus of these reports has been to evaluatethe ability of the state governments and union territories to pursue value creationopportunities and accompanying inclusive economic development, facilitated byICT. Consequently, the DIT-NCAER reports/methodology, which is specific toIndia, emphasize on application of ICT based services to the served andunderserved section of people and geographical areas.The e-Readiness assessment reports for 2006 and 2008 have been released.

2.2.11 Electronic Delivery of Services (EDS) Act

To speed up the process of enabling electronic delivery of public servicesto the citizens and for overcoming issues like resistance to change, systemicinertia, procedural hurdles, lack of transparency and legal impediments whichhinder electronic delivery of services, it is proposed to enact the ElectronicDelivery of Services (EDS) Act which would mandate provisioning of all publicservices compulsorily through electronic means from a specified date.

The Bill seeks to mandate within a period of five years from the date ofthe Bill coming into force, provisioning of all public services of the Central andState Government Ministries and the field formations and subordinate units ofthese Ministries compulsorily through electronic mode.

The Salient features of the draft Bill are

It shall be applicable to all Central and State Government Ministries,departments and field formations of Central and State Governments.

Every Head of Department or field formations of Central or StateGovernment including all the Secretaries to the Central or StateGovernment, designated as competent authorities, will within aperiod of one hundred and eighty days of the EDS Act coming intoforce, publish all the public services of the department, agency orbody which are to be delivered through electronic mode;

Subsequently these competent authorities will review and re-publishon 1st January every year the following details related to the abovelist of public services to be delivered through electronic modenamely

a. the date by which each such service shall be made availablethrough electronic mode;

b. the manner of delivery of such services and their service levels;c. the Grievance Redressal Mechanism available to any aggrieved

person regarding non availability of Electronic services The competent authority while introducing services in electronic

mode will also provide for assisted access to these electronic services An oversight mechanism has been provided for implementation and

monitoring of this Act in the form of Central Electronic Service

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Delivery Commission (CESDC) at the Central Government level andState Electronic Service Delivery Commission (SESDC) at the StateGovernment level.

The CESDC and SESDC can give directions to the departments ofCentral and State Governments regarding implementation of the EDSAct

The CESDC or SESDC to be consulted by the Central or StateGovernments for any exemption related to non electronic delivery ofany public service or extension of time period from 5 years to 8 yearsfor electronic delivery of all public services.

The various departments of Central and State Government willsubmit details regarding implementation of the EDS Act bill to thedesignated commissions

Contravention of the provisions in this Act or the directions of theCESDC or SESDC shall attract penal provisions of the Act.

Both the Central Government and State Government shall notifyrules to carry out provisions of this Bill.

The first draft of the ESD Bill was uploaded on DIT’s website andcirculated amongst stakeholders for views and suggestions on 7th February2011. Comments received have been reviewed and a second draft was preparedafter extensive discussions and consultations. This revised draft was thereaftercirculated to various Central Government Departments and Ministries and theState Governments. Department of Information Technology also held aconsultative meet on the EDS Bill on 18th July 2011, which was chaired by ShriKapil Sibal, MoC&IT and was attended by Central Government Ministries,State Governments, Industry Associations, Industry, NGOs, Media and CivilSociety Organisations. The draft EDS Bill has also been examined in detail bythe Legislative Department and Department of Legal Affairs of the Ministry ofLaw and Justice of Government of India.

2.2.12 Mobile Governance

Considering the tremendous potential of mobile phones to expand theaccess to and reach of public services in India, DIT has taken an initiative tocreate a Mobile Service Delivery Gateway (MSDG) that will be integrated withthe State Service Delivery Gateways (SSDGs) and the National Service DeliveryGateway (NSDG) and shall utilize the existing e-Governance infrastructure fordelivery of services.

A Draft Consultation Paper on Mobile Governance Policy Frameworkwas released for feedback and comments from all the stakeholders on28.03.2011. DIT has conducted five rounds of public consultation with all therelevant stakeholders to elicit their views and comments on the proposed policyframework. CDAC has been assigned the responsibility of developing theMSDG that will enable delivery of public services through mobile devices. Aspart of MSDG, CDAC has launched the SMS Gateway services in Goa on08.07.2011. Seven services on mobile platform have already been launched.Other components of MSDG, such as USSD, GPRS and IVRS shall bedeveloped and launched by December 2011. A suite of around 25 applicationsfor Government services will be developed by December 2011 and MSDG shall

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be enabled for integration with all the MMPs for delivery of services throughmobile devices by March 2012.

2.2.13 World Bank Funding

The Government of India and the World Bank on May 10, 2011 signedan agreement of US $ 150 million for ‘e-Delivery of Public ServicesDevelopment Policy Loan’ under the National e-Governance Plan. The “e-Delivery of Public Services Development Policy Loan” will support NeGP’scountrywide plans of increasing online services for citizens in their locality, toimprove the quality of basic governance in areas of concern to the common man.While this World Bank loan will not target specific services per se, it willsupport Government of India’s objective of increasing access to online servicesby citizens in their locality. It will do so through supporting policy andinstitutional actions, which place higher emphasis on coordination and increaseoutreach to citizens. The loan from the International Bank for Reconstructionand Development (IBRD) has a 5-year grace period and a maturity of 18 years.

2.2.14 Mission Mode Projects

NeGP comprises of 27 Mission Mode Projects (MMPs) encompassingnine (9) central MMPs, eleven (11) state MMPs and seven (7) integrated MMPs.MMPs are owned and spearheaded by various line ministries. StateGovernments are responsible for implementing State MMPs, under the overallguidance of respective Line Ministries in cases where Central Assistance is alsorequired. DIT acts as the facilitator and catalyst for the implementation of NeGPand provides technical assistance to various Ministries / Departments and StateGovernments.

Of the 27 MMPs, except for 2 projects (Employment Exchange and e-Pri) all other MMPs have been approved. Of the 9 Central MMPs, 4 are in PostImplementation Stage (MCA21, Income Tax, Pensions, and Central Excise) andthe remaining 5 are in implementation stage. Of the 7 Integrated MMPs, 1 MMP(India Portal) is in Post Implementation stage and the remaining 6 MMPs are inimplementation stage. Of the 11 State MMPs, 9 MMPs are in implementationstage and the remaining 2 are in Design and Development stage.

DIT also acts as the Secretariat to the Apex Committee. As part of thisresponsibility DIT is required to present a dashboard view of the entire NeGP tothe relevant authorities like Apex Committee, Planning Commission, and PrimeMinister’s Office etc. In order to facilitate the above, DIT has been collectinginformation on the progress of the various MMPs from the different LineMinistries on a monthly basis which is then consolidated into a “MonthlyProgress Report (MPR)” and submitted to the Cabinet Secretary. Progress onvarious Projects is regularly communicated in the form of a fortnightly report tothe PMO. Considering the complexity of the Monitoring and Evaluationrequirements, DIT conceptualized a Project Management Information System(PMIS). The PMIS ensures that the progress information is availablesystemically without being person dependent. Such a system can provide a realtime status on the progress of any project and therefore for the programme onthe whole.

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In view of the complex requirements, it was decided to implement thePMIS in phases. It was also decided to implement the immediate requirementswhich could assist in simplifying the collection and monitoring of data as part ofthe Phase I of the project. Currently the phase I of the project has been rolled outsince January, 2011.

3. Vision and Objectives of the Twelfth Five Year Plan

The Department of Information Technology has the following vision for theNeGP – 2006:“To make all Government services equally available and accessible to all citizens in asimplified, affordable and time bound manner and to reduce social and economicbarriers by establishing a ubiquitous presence of ICT across all regions of thecountry”

Whereas, some of the envisaged objectives has been achieved in the XIth Plan,but much more needs to be done to realize this vision. The main objectives of theTwelfth Five Year Plan are:

To deliver all Government services in electronic mode so as to make theGovernment process transparent, citizen centric, efficient and easily accessible.

To break information silos and create shareable resources for all Governmententities

To augment internal ICT and e-Governance capacities of Central and StateGovernment Departments

To leverage core infrastructure including optic fibre based connectivity to250,000 Panchayats and the Common Service Centres to create the rightGovernance and service delivery ecosystem at the Panchayats

To leverage the mobile ecosystem, to deliver both informational andtransactional Government services over mobiles and promote innovation inmobile governance

To build Shared Service Platforms to accelerate the adoption of e-Governanceand reduce the “cycle time” of e-Governance project implementation

To strengthen and improve sustainability of the existing projects throughinnovative business models and through continuous infusion of advancedtechnology

To promote ethical use of technology and data and to create a safe and secure e-Governance cyber world

To create an ecosystem that promotes innovation in ICT for Governance and forapplications that can benefit the citizens

To better target the delivery of welfare schemes of the Central and StateGovernments

To reduce asymmetry in information availability, accessibility and ability toutilize the information

To increase the all round awareness and create mechanisms that promotes andencourages citizen engagement.

To make available as much data as possible in the public domain for productiveuse by the citizens

Major Recommendations for the Twelfth Five Year Plan

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3.1 Institutional infrastructure

3.1.1 National Institute for e-Governance (NIG)

If adequate capacities are to be created at all levels of Government and in thesociety to leverage ICTs, an organizational framework at the Central, State and locallevels is a must. Further, ad-hoc arrangements will not be adequate; planned structureswill need to be put in place. Currently, there is no systematic way of imparting e-Governance training to Government employees, identifying relevant course content,developing and updating courses in tune with the changing technologies, ensuringavailability of quality e-Governance trainers and ensuring that the vast knowledgeacquired by individuals in e-Governance domain is disseminated. In order to enablelarge scale training efforts it is also necessary to put in place an organizational structurefor training, content development and research and innovation in e-Governance.

Therefore, DIT proposes to setup a State of the Art National Institute for e-Governance (NIG) as an autonomous Institute in the Twelfth Five Year Plan. Theprimary focus of this institute will be to impart e-Governance related training toGovernment employees all year round. It will also act as the pioneering institute for e-Governance related research. NIG is envisaged to be created as a role model school ofe-Governance which will deploy latest pedagogies to bring about radical change inemployees attitude and acceptance of e-Governance and IT. NIG will be used fortrainings and workshops planned under the capacity building scheme. NIG will alsotrain at least 50 people from Central Government per year on Project ManagementCertification which is very crucial for the success of any e-Governance project.

The trainings would be offered at the Institute in house as well as through e-leaning courses. In order to give a thrust to e-Governance related training, incentivizedcertification programmes could be introduced. The Institute would also facilitateinteraction with the faculty for expert and subject matter advice. NIG would not belimited to imparting e-Governance training only to Government employees. As anInstitute par excellence in e-Governance, it would try to attract both national andinternational students and would impart short term courses in e-Governance. In order topromote e-Governance, NIG would establish partnerships with Post graduateinstitutions like the IIMs and offer electives in e-Governance to students. In order tokeep abreast with the latest in e-Governance, NIG would identify successful and failede-Governance initiatives on an ongoing basis, build a knowledge repository of cases anduse them in the training and course content.

In addition to the training facility, NIG will house the following

Biometric Centre of Excellence

As the cyber world expands, more and more e-Governance applicationswill be faced with the challenge of uniquely identifying and authenticating theserviced individual and protecting every individual’s personal data. Advanced e-Governance applications, worldwide, use biometrics such as finger prints, IRISetc. to uniquely identify and authenticate individuals. However, technologicalchallenges related to accuracy, quality of image, speed and effectiveness persist.In order to ensure that biometric technologies become an enabler rather than adampener, it is necessary to invest in biometric related research, identifyfeasibility of new and existing biometric technologies, create a human database

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of biometric experts, set standards for biometrics, systemically counter ethicalissues associated with biometrics through awareness, better equipments etc. Adedicated centre of excellence within NIG will give the required impetus tothese initiatives and this centre will be responsible for research, promulgation,capture, storage & devices of biometrics for all sectors. It will also specify thebest practices in order to ensure interoperability, vendor independence,conformance to standards and improved performance.

National Institute for Standards (NIS)

In order to promote Standards for interoperability it is required to create aNational Institute for Standards (NIS) which would oversee the creation,promulgation and use of thousands of norms, standards and guidelines thatdirectly impact governments in nearly every sector. This institute would also bemandated to facilitate the testing, assessment & conformance and training to thedepartments for the Standards and guidelines. This institute would have adedicated pool of in house resources and would be responsible for the following

a. Development of Standardsb. Consulting of Standards in various projectsc. Certifying that a product, service or person conforms to the requirements

of a standard.d. Publishing of standards in electronic and other diverse range of mediae. Trainingf. Promoting Standardisationg. Using good regulatory principles and behave legally and ethically;h. Engaging with all stakeholders;i. Ensuring balance on committees and transparency of interests;j. Adhering to consensus and governance processes;k. Accrediting other Standards development organisations; andl. Continuous improvement.

Business Process Re-engineering (BPR) Cell

Business process Reengineering (BPR) is critical for success of e-Governance initiatives. However, BPR is highly complex. It is furthercompounded by the fact that most of the Government Departments lack therequisite will and skill set to carry out the BPR. Hence, it is proposed to create adedicated cell within NIG only for BPR. This dedicated cell would work closelywith the Line Departments as well as External Consultants right from Designphase of the project to handhold and ensure that adequate BPR is done. The BPRcell will assist the Line Departments to identify areas where processes could bere-engineered easily leading to “quick gains”. In other cases, where BPR isdifficult due to varied reasons, the dedicated cell would assist the LineDepartments to put in place a strategy to achieve the end state maturity. This cellwould study national and international best practices and processes both inGovernment and private entities and identify means to introduce the same withinthe e-Governance projects.

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Cyber Security Cell

In order to prevent cyber security breaches, ensure timely response andrapid recovery in the event of a cyber attack and to ensure users andadministrators are given the appropriate training and education in cyber securityrelated best practices, it is proposed to set up a dedicated cyber security cellwithin the NIG which will coordinate all such efforts to assure a secure, resilientand trustworthy ICT infrastructure for e-Governance.

Geographical Information System (GIS) Cell

In order to create the base GIS data, adequate GIS capacity needs to beaugmented within the Government. However, creation of such capacity in eachand every Department is neither practical nor feasible. Therefore, a GIS cellwill be created within NIG.

This GIS cell will be responsible for the following Laying down the roadmap for the identification and adoption of GIS for

each and every MMP being implemented under NeGP Identification of base GIS data, scale and applications needed for each

MMP under NeGP Identification of the owners of base data and collection of the same. Laying down the guidelines and standards with respect to the metadata,

quality and technical standards for data collection and maintenance Creation of a NeGP GIS platform Disseminating and adoption of NeGP GIS platform by the MMPs Capacity building and training of department personnel on GIS Co-ordination and Collaboration with the National GIS organization (as

and when formed) for adoption of common standards, rules andprocedures for seamless integration of NeGP GIS Platform with theNational GIS Platform

3.1.2 State Level Institutions

A comprehensive program of institutional strengthening is needed to address theuneven progress in specific states as well as to re-orient officials to new ways ofinteracting with citizens. Hence, in addition to setting up of the NIG at the NationalLevel, in the Twelfth Five Year Plan it is proposed to setup/ strengthen 25 State levelInstitutions on lines similar to NIG. The State level institutions will be the modelinstitutes in e-Governance at the State level. Necessary infrastructure would be put inplace in these institutes for training and local content development and research in e-Governance. The primary focus of the State institutes will be to impart e-Governancerelated training to State Government employees all year round. These institutes willemploy the same pedagogies as the NIG and will be mentored by the NIG. Theseinstitutes would identify successful and failed e-Governance initiatives at the State levelon an ongoing basis, build a knowledge repository of cases, use them in the training andcourse content and contribute to the NIG repository.

5 Regional GIS Centres on self sustainable model will be established in 5 StateLevel Institutions to adequately cover all the regions to implement and maintainthe GIS/GPS and Remote Sensing application project for the spatial decisionsupport system, service delivery and infrastructure/programme management in

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the country. The centres would essentially address all aspects of end-to-enddomain of GIS viz. GIS data and asset; GIS Apps; GIS Policies; GIS Trainingetc in the country.

5 Regional cyber security cells will be established within these institutions, tocreate greater awareness about cyber security issues, analyse regional cybersecurity needs and issues and create a secure e-Governance environment.

Project Management Certification – Each Institute will train at least 10 peoplefrom State Government per year on Project Management Certification which isvery crucial for the success of e-Governance projects.

3.1.3 Chief Information Officers (CIOs)

The Mission Mode Projects (MMPs) approved under NeGP, are generallyheaded by Joint Secretaries of the Departments with little help by way of specializedresources. DIT had issued guidelines for constituting dedicated project teams consistingof expert resources in the areas of Technology, Project Management, ChangeManagement, Cyber Security and Legal Experts who would be available on full timebasis at the individual Departments/ Line Ministries of the Government of India to assistthe Mission Leaders of the MMP’s. However, this has not been made operational by theMinistries/Departments.

Hence, in the Twelfth Five Year Plan, DIT plans to introduce CIOs in Ministriesand Departments implementing large IT Projects and in the States/UTs methodically.The CIOs would be assisted by composite teams consisting of experienced professionalsfrom the Government as well as from the market with expertise in various areas ofTechnology and management of large ICT/e-Governance projects. These CIOs wouldbe created in a phased manner. Initially, CIOs will be setup in Ministries / Departmentsthat are implementing MMPs under NeGP and Ministries/Departments that are makingsubstantial investment in ICT in a phased manner.3.1.4 International Collaboration

In order to showcase India’s experience as well as success stories in e-Governance and to learn from the experience of the other Countries, greaterinternational collaboration is required. Compared to a few advanced countries, India hasembarked on the e-Governance journey at a much later stage and hence could be greatlybenefitted from the learning and experiences of these countries. Compared to a fewother countries, India has made substantial progress in the e-Governance domain andcan not only help these countries in their endeavour but also facilitate creation ofbusiness opportunities for the Indian ICT Industry in these countries. Hence, DITproposes to give a greater focus to international collaboration both to learn from othersand to share its own experiences with e-Governance with others.

In the Twelfth Five Year Plan, DIT proposes to increase bilateral andmultilateral cooperation through platforms such as SAARC, Commonwealth, and JointWorking Groups and so on. DIT proposes to further enhance

Bilateral development cooperation which is focused on over 25 prioritycountries in Middle East regions, Africa, Asia, Latin America, Europe, NorthAmerica, etc.

Interaction with various multilateral forums like WTO, UN and its Bodies etc.

DIT proposes to organize and participate in Exchange Programmes, JointWorkshops and Trainings periodically. Diversified representation from Central andState Government agencies for these international programmes is envisaged.

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3.2 Enterprise architecture

IT is an enabler to achieve a business or strategic goal. IT cannot be looked at inisolation. The role of IT in e-Governance is also that of an enabler, as the basic goal isto improve delivery of public services. Enterprise architecture (EA) is a conceptualframework that will align IT with the business. It basically combines four perspectives –business, application, data and technology thereby giving an enterprise wide view of thestructure and operation. EA helps to break silos, leads to optimum utilization ofresources, maps business and strategic intent of an organization with the variousinitiatives and makes the organization agile as it is always aware of its assets. E-Governance projects in India lack a uniform EA i.e. a uniform way of identifying thedifferent perspectives and the components that make those perspectives. An EAframework for e-Governance would help in identification and replication of commonprocesses and standards, facilitate BPR in common processes, identification of commontechnology elements and so on.

An integrated and unified e-Governance Service Delivery Framework (eSDF)for the Government will support the information flow between the disparate Systemsmaintained by individual ministries and departments.

eSDF would provide a comprehensive approach for designing, planning,implementation, and governance of an enterprise information architecture. It will alsoprovide a holistic approach to design, which would be modelled at four levels: Business,Application, Data, and Technology. It will give a well-tested overall starting model toinformation architects, which can then be built upon by each project. It will rely heavilyon modularization, standardization and usage of already existing, proven technologiesand products. The four pillars of Enterprise Architecture are described below

Business architecture or business process architecture will define the businessstrategy, governance, organization, and key business processes of theorganization

Applications architecture will provide a blueprint for the individual applicationsystems to be deployed, the interactions between the application systems, andtheir relationships to the core business processes of the organization with theframeworks for services to be exposed as business functions for integration.

Data architecture will describe the structure of an organization's logical andphysical data assets and the associated data management resources which wouldavailable to everyone for use.

Technical architecture or technology architecture will describe the hardware,software and network infrastructure needed to support the deployment of core,mission-critical applications

In the twelfth five year plan, the following is proposed to be created under the eSDF

Overall Framework including that of Data Architecture Platform and tools to optimize the functions of the Departments Dashboard to promote and track sharing and usage of data, process &

infrastructure

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3.3 Open data platform

Data and information are recognized at all levels as valuable resources.Availability and accessibility of data and information in the public domain, leads toanalysis and interpretation of data and information in a wide ranging manner notcomprehended by the collectors of such data and information. Governmentorganizations have large reservoirs of data and information generated through publicfunds. Most of this data is non-sensitive in nature and can be used by public forscientific, economic and developmental purposes.

Section 4(1) of the ‘Right to Information’ Act, 2005 obligates public authoritiesin India (except Jammu & Kashmir) to maintain all its records duly catalogued andindexed in a manner and the form which facilitates the right to information and ensurethat all records that are appropriate to be computerised are, within a reasonable time andsubject to availability of resources, computerised and connected through a network allover the country on different systems so that access to such records is facilitated.Although the RTI Act, 2005 makes it implicit that all appropriate records should becomputerized and made accessible through a network all over the country on differentsystems within a reasonable time and subject to availability of resources, it does notexplicitly or implicitly state that such records should be accessible in a machinereadable form. Hence, the stipulation under the RTI Act, 2005 is inadequate to facilitateanalysis of data unless the data is made available in machine readable form.

With the web 2.0 becoming a latest mode of participative mechanism ofinformation sharing it is essential that the e-Governance infrastructure should also usethe best practices of web 2.0 to make its services delivery more citizen centric andparticipative.

Also, evidence-based Planning of socio-economic development processes relyon quality data. There is a general need to facilitate sharing and utilization of the largeamount of data generated and residing among the entities of the Government of India.This would call for a policy to leverage these data assets which are disparate. However,the current regime of data management does not enable open sharing of Governmentowned data with other arms of the government nor does it expect proactive disclosure ofsharable data available with data owners. Such regimes could lead to duplication ofefforts and loss of efficiency of planning of activities focused on national development.Efficient sharing of data among data owners and inter and intra governmental agenciesand with public calls for data standards and interoperable systems. DST, along withDIT, has been drafting the National Data Sharing and Access Policy (NDSAP) whichaims to provide an enabling provision and platform for providing proactive and openaccess to the data generated through public funds available with various departments /organizations of Government of India.

The objective of NDSAP is to facilitate the access to Government of Indiaowned shareable data and information in both human readable and machine readableforms through a network all over the country in a proactive and periodically updatablemanner, within the framework of various related policies, Acts and rules of Governmentof India, thereby permitting a wider accessibility and use of public data and information.

In the Twelfth Five Year Plan, DIT proposes to create the requisite platform thatwould enable data generated using public funds to be placed in the open domain.Additionally, managing an open data policy entails many activities beyond simply

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creation of a data hosting platform. There will be issues relating to data standards,pricing, privacy, security, national and international concerns etc. This will require awell defined institutional framework at the Central level and also in all the datacontributing departments. DIT will need to take up additional responsibilities as it isalready responsible for e-Governance Standards and it is also coordinating with thecentral and State Government Departments for the implementation of the NeGP.

An Open Data platform benefits all the government departments in the costeffective delivery of the core services that support their programs and missions. Thisplatform will allow departments to participate in the first place, but as importantly italso provides the necessary infrastructure for the efficient, faster delivery of their data toother agencies, citizens and other developers. Open Data as a platform is a win/win: byequipping departments with an Open Data platform they become empowered andenabled to share data, more cost effective delivery of services to their core constituentsin support of their own department programs and missions.

Once the data is available in open platform tools can be created for data miningand business and social data analytics. It is also expected that this facility will allowinnovators, developers and entrepreneurs to create mash-able applications on top of thedata made available and provide applications on mobile phones that will offer variouspublic and business services to citizens.

3.4 Innovation and R&D fund

In the present knowledge era, innovation is a key to a successful economicgrowth. With the creation of the necessary infrastructure for delivery of Governmentservices to the last mile it is important that maximum benefits are realized out of thisinfrastructure. Projects relating to inter alia innovative use of ICTs, delivery of uniqueICT enabled services or innovative use of existing ICT infrastructure to deliver specificG2C and G2B services which otherwise may be difficult to deliver. DIT will beencouraging Central and State Ministries, Line Departments and Agencies, LocalGovernment Administrative bodies, Educational and Research Institutions, Incubatingand Start up companies etc. to submit innovative projects in this regard. Under theTwelfth Five Year Plan, in order to give a boost to such innovation andentrepreneurship in the ICT domain, DIT proposes to create two funds specifically forthe promotion of e-Governance and mobile Governance.

E-Governance Innovation Fund

It has been observed that India lags behind many of the other countries interms of the number of entrepreneurs in the ICT domain. There is a need tosupport entrepreneurs in the development of creative and innovative solutionswhich could be used by the Government of India to deliver better citizenservices across sectors through the use of ICT. Hence, an e-GovernanceInnovation Fund is proposed to be created through initial support by DIT in theform of “Grants-In-Aid”. Gradually, the fund is expected to attract fundsthrough private participation as well as from the returns of earlier investments.This fund will be used to provide entrepreneurs with incubation infrastructure,Seed Money or early stage/ angel funding, venture funding and other necessarysupport.

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A specific percentage of this Fund will be set aside to provide assistanceto incubation and entrepreneurship centres in the Universities / Colleges topromote and advance innovation in the e-Governance domain. DIT wouldidentify and partner with leading graduate and post graduate Public Institutions /Universities and provide them with project based funding.

An independent jury comprising of experts in e-Governance domain bothfrom the Government and the private sector will recommend concepts / solutionsfor funding and for rewarding the successful entrepreneurs.

Mobile Governance Innovation Fund

Providing adequate financial and institutional support to various agenciesto foster creativity and innovation in developing appropriate applications formobile based delivery of public services is very important. It is proposed thatDIT shall take the initiative in creating a Mobile Governance Innovation Fund tosupport the development of suitable applications by Government departmentsand agencies and also by third party developers. The Fund shall be created andmanaged by DIT for a minimum period of three years. The objective of this fundwill be to accelerate the development and the mainstreaming of mobileapplications across the entire spectrum of public services. To achieve thisobjective, the scheme will recognise and reward innovations in mobileapplications and support the development and rapid deployment of applicationsthat address specific challenges in the delivery of public services and effectivemanagement of Government programs through mobile devices.

Various Government departments and agencies shall communicate theirpriorities based upon which proposals shall be invited for innovativeapplications to address specific needs and priorities of those departments andagencies. The financial support under this Fund shall be provided by DITthrough a transparent evaluation of the proposals received in this regard. Theappropriate institutional mechanisms for implementing this scheme shall beformulated by DIT.

3.5 Business Process Re-Engineering

Business process re-engineering (BPR) has provided a powerful impetus forinnovation in the public sector and has served as a tool for radically improving thequality of public services provision in a number of countries. BPR can be instrumentalin attaining the objectives of administrative reform, with its focus on results-orientedgovernance, streamlining the range of government services, increasing inter-agencyinteraction and raising the government’s accountability. Carefully implemented BPRhas been an integral part of e-government programs on the national and local levels,especially of those involving the transition to single-window electronic services’delivery based on integration of information systems operated by multiple agencies. Ithas been a best practice internationally to undertake a careful analysis and redesign ofbusiness processes before committing any major investments into ICT in a governmentagency or department.

BPR involves redefining / simplifying the existing processing by weeding outthe redundant steps or by adding new steps or through innovative changes. Technologycould be a major enabler in BPR. In e-Governance Projects, significant opportunity forBPR exists in the ways in which citizens approach the Government for services,

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backend processing is done and the services are ultimately delivered. New andinnovative ways in which services (application forms) are made accessible and finallydelivered to the citizens can be a small but powerful change in the process. Similarly,opportunity for BPR exists in redefining the application forms to collect onlyincremental information from citizens at least for repeat services with the Departmentsthemselves accessing the earlier collected information from their database rather thanrequiring the citizen to produce that information again and again. Internal process canbe optimized and made efficient through BPR. GPS devices etc. can be used forcollection of data at the last mile. All this can significantly improve data infrastructureto get early and accurate data for real time decision making. However, most of thedepartments find it difficult to undertake BPR because of non availability of commontechnology platforms.

Hence, in the Twelfth Five Year Plan, DIT proposes to identify commonprocesses, conduct BPR studies and create common platforms for sharing of theprocesses. Opportunity for BPR in domains such as skill matching by creating aninventory of skill sets and jobs available etc. will be explored.DIT also proposes to create institutional structure in the form a BPR cell under theNational Institute for e-Governance (as already mentioned in Section 3.1.) forsupporting Central and State Departments in BPR and help them implementing the re-engineered Processes.

3.6 Electronic Delivery of Services (EDS) Act

One reason for the slow adoption of electronic services has been that currently,there is no legislation that makes electronic delivery mandatory for priority publicservices or any mandatory timeline for transforming public services. Key institutionalaspects of the introduction of e-service delivery have not been set out in formallegislation such as the role, functions and responsibilities of different governmentorganizations, the mechanism for coordination across government, the definition of anoversight mechanism, and the relevant financial arrangements. There are also a range ofpolicy issues that could be appropriately laid out in legislation such as strategic controlfor statutory and sovereign functions of government, digital security, and dataprotection. The IT Act of 2000 has already established the use of electronic records,signatures, and communications, and the Indian Penal Code and the Evidence Act havebeen amended to make these enforceable. The Right to Information Act, 2005 has madegovernment departments responsible to create, store and retrieve government documentsin electronic form. But there needs to be a stronger legislative foundation for the majortransformation of service delivery anticipated through NeGP to commit governmentagencies to the necessary reforms and to establish a common framework for the entireinitiative. Since e-governance goes far beyond technology, cooperation from otherministries and State governments will be necessary for implementing the provisions ofany act.

Accordingly, as has already been indicated under Section 2.2.11, that to speedup the process of enabling electronic delivery of public services to the citizens and forovercoming issues like resistance to change, systemic inertia, procedural hurdles, lackof transparency and legal impediments which hinder electronic delivery of services, it isproposed to enact the Electronic Delivery of Services (EDS) Act. The Bill seeks tomandate within a period of five years from the date of the Bill coming into force,provisioning of all public services of the Central and State Government Ministries andthe field formations and subordinate units of these Ministries compulsorily throughelectronic mode.

This Bill will get implemented in the Twelfth Five Year Plan. Success inimplementation of this Bill lies in creating an adequate oversight mechanism and

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providing hand holding and application development support to both Central and StateLine Ministries in automating their service delivery. Hence, for the effectiveimplementation of this Bill in the Twelfth Five Year Plan funding is required as

An appellate authority in the form of the Central Electronic Service DeliveryCommission (CESDC) at the Central Government level and State ElectronicService Delivery Commission (SESDC) at the State Government level tomonitor implementation, prescribe penalties for non-compliance, and adjudicatedisputes and resolve complaints needs to be setup.

The Electronic Delivery of Public Services Act will lay the basis for a gradual,nationwide improvement in computerization and online delivery of governmentservices in all States and UTs. The common timetable set by the act willencourage less advanced agencies to implement their MMPs. It will makepublic officials accountable for achieving benchmarks of e-service availabilityand quality. It will empower citizens to demand and receive quality services andto hold officials accountable for not doing so. In order to achieve theseobjectives it is envisaged that DIT will support State Governments andMinistries/departments for implementation of e-Governance projects. Assistancewill be given to every Central Government Department in delivering at least oneService in electronic mode and every State Government in delivering at leastthree Services in electronic mode apart from the services which are alreadyidentified in the MMPs under NeGP.

3.7 Shared Services Platform

It is important to integrate Government services with inter-operable standardswith convergence across departments breaking the silos and duplication of meta-dataand processes and divisions between the technical /operational side and between fieldand secretariat. The concept of networking of organizations and information systems,with public administration functioning on a networked horizontal structural base,marking a departure from hierarchical command structures is the future administrativeroadmap. Advanced and virgin technologies like cloud computing etc. which hastremendous potential of integrating services for single window delivery needs to beexplored.

Technologies like Cloud Computing etc. offer a new paradigm of sharedservices infrastructure that has potential to create new generation data centres throughconsolidation of compute, network and storage power. Shared services result in savingof computer resources and their procurement time and lead to faster delivery of e-governance services to citizens. Under the Twelfth Five Year Plan, shared servicesinfrastructure would be created at national and state levels. National ImplementationUtilities (NIUs) will be setup to provide services on demand.

National Shared Services Platform

National Shared services infrastructure will be used for Hosting m-governance infrastructure and gateway which will route the

mobile requests to the departments providing back end services. Hosting e-payment gateway as a common service which can be used by

the various government departments for collection of service andtransaction charges in their e-Governance applications.

Creating a common Call centres for e-Governance; a single number canbe given to citizens to get information of public services. Depending

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upon the state from where the service is available, the call can be routedthere. Thus for a citizen a single interface can be provided.

Software development environments, as a shared service, can be offered todifferent government departments allowing them to develop and test theirapplications on them, thereby, resulting in time and cost savings.

National Grid of States

SDCs are being setup in all the States. The resources at the SDCs couldbe combined for usage of various Departments of the States. It is also very likelythat the computing and storage resources of some of the SDCs are heavilyutilized whereas in case of some others they are sparsely utilized. The computeand storage resources of all the SDCs can be combined to create a National Gridof compute and storage resources. Depending upon the actual utilization, theapplication of one State can be deployed in SDC of other State.

Such a National grid of shared resources will enable one SDC to hostapplications of several other states, thereby laying the foundation of multitenancy architecture. It will result in better utilization of computeresources at a national level.

Testing tools of different types which are used for testing e-governanceapplications can be hosted on National grid for testing of State levelapplications.

Disaster Recovery

Creating multiple and passive disaster recovery does not make sense inthe new technology area. The compute resources at the Disaster recovery siteslie largely idle except when there is a disaster. A massive shared infrastructurefor disaster would lie mostly idle as disaster is very unlikely to strike all primarysites at the same time. Hence, possibility of using the compute infrastructure atthese disaster recovery sites needs to be explored. Innovative applications andmonitoring devices need to be developed that can assist in optimally usingresources of the disaster site through probabilistic models.

Since shared services technologies are still largely new and unexplored, there areconcerns related to Security and Identity Management, Privacy and Trust,Interoperability and Portability, Data Management, Governance and Standards.However, giving a push to such new technologies is likely to open new areas ofopportunities for next generation of IT professionals and India to become aglobal leader.

National GIS Platform for e-Governance

In the current times, decision makers need large volumes of data to bereadily available, tools to analyse the data quickly and accurately and the abilityto overlay data on a set of co-related parameters. Traditional means of collectingand storing data makes them highly inaccessible, takes a lot of time for retrieval,leads to limited and inaccurate analysis and most importantly makes itimpossible to overlay related factors thereby severely affecting the quality of thedecisions and actions. GIS is the foolproof tool available for extracting,managing, and analysing spatial data in juxtaposition with attributes for solvingcomplex managerial problems, thereby enabling better decisions on the critical

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issues. GIS can accommodate data from various sources such as GPS, RemoteSensing, Total Station based survey data, etc.

Spatial Decision Support System (SDSS) essentially integrates map andtabular data in GIS environment. Alpha-Numeric Decision Support System hasslowly shifted to Spatial Decision Support System (SDSS) since the availabilityof Remote Sensing data, which has the capability of providing up-to-date dataon the area of study. Spatial Decision Support has matured to another dimensionto capture spatial data through GPS Survey.

A number of countries have realized the potential of GIS as a decisionsupport system. These countries have realized that the collection of similar GISdata independently by multiple agencies has huge cost and time implications.Also, GIS data is not a static data. It is highly dynamic and maintenance ofsimilar copies of data by multiple agencies adds up to the overall cost. Inaddition to this, there are operational issues in updating the data on a periodicbasis. Even when these organizations are able to setup mechanisms to updatedata and define periodicity of updating the data, the trust on these systems is lowbecause of multiple agencies having similar data, which is time-different.

Despite the above mentioned roadblocks, GIS has a very important roleto play in improving delivery of Public Services. It will not be long beforedecision makers will need the potential of GIS to help them in delivering publicservices. Hence, under the Twelfth Five Year Plan, DIT is planning to createEnterprise GIS Framework and a GIS platform for MMPs under NeGP.

3.8 National APPS Store

The iPhone Apps Store is a wonderful example of how a platform could promotethe development of thousands of applications by individuals / third parties. Many atime, developers lack a platform to reach the consumers and the consumers are unableto find the applications which are useful to them. In order to facilitate both thedevelopers of e-Governance products and its consumers including Government,business and citizens to discover each other, it is proposed to create a National Appsstore in the form of a portal. The purpose of this National Apps Store will be two fold

To be a download repository of software tools. Commonly used proprietary andopen source applications will be available for download from this Store byGovernment employees. In the case of licensed applications, adequate securitymechanisms will be put in place to ensure that license agreements are notviolated.

To provide a platform that encourages individual developers to develop theirown products – proprietary or open source for community good and needs. Suchproducts could be priced or provided free of cost from this platform dependingupon the purpose and the business model of the developer. This portal will

a. Assist developers to market their applications to Government, businessand citizens

b. Assist Government Departments to search applications that meet theirspecific requirements, to test the applications for a limited period toevaluate its suitability to their business objectives, evaluate total cost ofownership (TCO) for an application or multiple applications availablewithin the store for a specific requirement etc.

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c. Reduce the time taken by the Government Departments to deliver aservice electronically to the citizens as third party developers couldassess the business opportunity and create futuristic applications. TheStore will be one of biggest boosters in the implementation of the EDSAct.

d. Enable developers to assess the demand for a particular application –mostly value added applications and create such applications.

e. Open up an entire market of downstream applications in e-Governance.Government only needs to create upstream applications

This National Apps Store will host both web based and mobile based applications.

E-Governance Apps Store

The e-Governance Apps Store will host web based e-Governanceapplications. Such applications can be downloaded by Government, businessand citizens and installed on the servers / client machines or executed throughtheir browsers. In order to populate the Store initially the Government wouldprovide funding support for the development of a few applications. One exampleof such application could be development of software to track administration ofpolio drops. Once developed, this application will be made available on the appsstore. The CSCs can then download the application from the apps store andinstall it on their local machines. The Health workers responsible foradministering the Polio drops could also download and install the application ifthey have the requisite infrastructure. The actual information of the infants whohave been administered the polio drops in a particular polio drive could berecorded either by the Health workers themselves or through the CSCs. Nexttime onwards the list of earlier administered infants could be generated andmade sure that none of the earlier ones are missed out. The availability of aninitial database would then create the enabling environment for the developmentof value added applications such as those for providing the overall status of theinfants vaccinated, for gauging the success and improving the effectiveness ofsuch drives, for identification of locations which need extra efforts, and forplanning the future drives.

Mobile Apps Store

It is proposed that a mobile applications (m-apps) store be created tofacilitate the process of development of suitable applications for delivery ofpublic services through mobile devices. The m-apps store shall be integratedwith the MSDG and shall use the MSDG infrastructure for deployment of suchapplications. It is proposed that the store will be developed based upon serviceoriented architecture and cloud based technologies using open standards as far aspracticable. The applications themselves can be developed and deployed byGovernment departments and agencies or by third party developers through anappropriate PPP model. The m-apps store shall be created, owned, and managedby DIT or an agency nominated by it.

3.9 Mobile Governance

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Mobile governance holds tremendous potential for improving the access to anddelivery of public services in India. The huge potential of m-Governance in the countryarises from a number of factors:

The rapidly expanding subscriber base of mobile phone users in India can helpin accelerating the use of modern information and communication technologies(ICTs) for improving governance and ushering in inclusive development. As on31st May 2011, the number of mobile phone subscribers in India stood at 840.28million and the mobile teledensity was 70.23%. Out of the total subscribers, theshare of rural subscribers was 33.98%. The total subscriber base of mobilephone users is projected to grow to one billion by 2012.

The relevance of mobile devices as a medium for delivery of public services isalso evident when we compare the subscriber base of mobile phones to that ofthe internet. The total number of broadband subscribers (with minimumconnection speeds of 256 Kbps) was only 12.12 million as on 31 May 2011.Wide access to mobile phones in the country has made it an ideal platform forGovernment to citizen interface, especially in the rural areas.

Though most of the handsets currently available in the country are low-end withonly text and SMS capability, handset vendors in India are increasinglyproducing low-cost handsets with GPRS and other similar technologies and, insome cases, even 3G featured in them. This has helped in expanding the reach ofmodern mobile technologies such as GPRS and 3G to a large number of peopleopting for these handsets. This has also made it possible to deliver publicservices using these technologies in addition to the SMS-based services.

In the Twelfth Five Year Plan, the mission that is envisaged to be achievedthrough m-Governance is to make public services available to all the residents of Indiathrough a mobile platform that is available 24x7 on anytime anywhere basis. In order toleverage the potential of mobile devices as the main service delivery platform,following policy initiatives are proposed:

Making all Government Web Sites Mobile Compliant

The Government of India will support a “One Web” approach toGovernment web sites. “One Web” means making, as far as possible, the sameinformation and services available to users, irrespective of the device or thebrowser they are using. This means that the mobile device compatibility of allthe Government web sites should be ensured. It is proposed that standards formobile-based accessibility of central and state Government web sites beestablished and best practice guidelines for enabling mobile access to these sitesbe followed. Some of the guidelines that may be adopted in this regard areprovided below:

a) Central and State Government websites should consistently enable mobilesite access as new sites are designed and implemented. Mobile Web BestPractices 1.0 from the World Wide Web Consortium (W3C) athttp://www.w3.org/TR/2008/REC-mobile-bp-20080729 may be referred towhile formulating standards for enabling mobile web access.

b) All Government agencies should use mobile optimized content as a primarymethod for device support, with device specific style sheets as appropriate. Itmay be noted that in some smartphones not much effort may be required torender a usable web site on the device.

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c) Mobile web site access should be supported by CSS specific files for majorsmartphone devices using any of several device detection methods such asthe Wireless Universal Resource File (WURFL) athttp://wurfl.sourceforge.net to redirect to specific mobile implementations.Other types of web enabled mobile devices, when detected, should degradegracefully to text based CSS implementations for less capable devices.

d) Specialized website addresses for mobile sites should be avoided inpreference to using standard web addresses. As an example, a single URLaddress “www.india.gov.in” should render the website on a computerbrowser or a mobile device through a dedicated script that is capable ofdetecting the device used and redirect to the corresponding content structure.

e) The Government websites should take into consideration constrainedresources for bandwidth, screen size, colour, and resolution peculiar tomobile devices.

f) The Government websites, before being made live for public use, should betested for mobile website implementations in as many targeted devices andsimulators as is practicable.

Creation of Mobile Service Delivery Gateway (MSDG)

The mobile applications for Government services envisaged under theproposed policy framework will offer an opportunity for “anytime, anywhere”service delivery to support the range of programs implemented by variousGovernment departments, e.g. in health, education, agriculture, ruraldevelopment, etc. It is therefore recommended that a Mobile Service DeliveryGateway (MSDG) be developed and maintained by a suitable agency under DIT.

The Proposed MSDG will act as a managed technical infrastructure toaccelerate rapid and low-cost development, testing, deployment, provisioning,and maintenance of various m-Governance applications. The objective ofcreating MSDG is to create a Government-wide shared infrastructure andservices to enable the rapid and inexpensive development, mainstreaming anddeployment of m-Gov services. It will enhance the interoperability amongvarious government services as well as reduce the total cost of operation of m-Gov services by providing a common pool of resources, aggregating demand forcommunication and e-Gov services, and act as a platform for variousGovernment departments and agencies to test, rapidly deploy, and easilymaintain m-Gov applications and provide mobile based services across thecountry. Provided below is a list of key, but not exhaustive, functionalities of theproposed MSDG:

a) MSDG will serve as the managed technical infrastructure to support m-Govapplications across the Government departments and agencies in India. Itwould include facilities such as hardware and software needed to test anddeploy m-Gov applications, the connectivity options for the residents toapply for and receive Government services through the mobile devicesirrespective of the mobile operator they are subscribed to.

b) MSDG will also have an integrated channel for delivering IVR basedservices to the residents who wish to access e-Government services throughvoice mode.

c) The facility to use MSDG will be available for use to any Governmentministry, department or agency that wishes to provide mobile based e-Gov

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services to its users, thus eliminating the need for individual Governmentagencies to develop their own mobile governance infrastructure.

d) MSDG infrastructure will support the delivery of both voice and dataservices and content in a network and device independent manner, reachingthe largest number of potential users. In addition, MSDG will offer sharedtools (data collection, helpdesk services, APIs, SDKs) to the Governmentdepartments and agencies that wish to deploy mobile applications for publicservices.

e) The MSDG architecture will be modular and will have capabilities for secureservice provision, controlled access and scalability. Special modules anddevelopment tools will be made available so that various Governmentagencies can add or remove their services, test new applications through aseparate interface thus ensuring that the overall functionality of MSDG is notaffected.

f) The MSDG will have a provision for metered access so that the variousagencies and partners of MSDG can account for the ‘for fee’ services basedupon the actual delivery of services.

g) The MSDG will be developed in such a manner that it readily connects toand integrates with the National Service Directory, NSDG, SSDGs and otherexisting IT systems and infrastructures deployed under NeGP, and haveAPIs to permit connection with the users’ IT systems in the future.

h) MSDG will be integrated with the existing mobile payment systemscurrently prevailing in the country. Additionally, the feasibility of having adedicated payment gateway to receive payments through mobile devices forGovernment services shall be examined for integration in the subsequentphase.

i) The MSDG will be primarily owned by DIT, its agencies or any otherorganization as may be decided by DIT.

Development and Notification of Standards for Mobile Applications

The standards for mobile applications will be developed and notified byDIT. The standards shall aim at ensuring the interoperability of applicationsacross various operating systems and devices to the extent possible. Theapplication providers will be encouraged to adopt these standards.

Notification of Long Codes, Short codes and m-Gov Number for MobileGovernance

It is proposed to have pre-designated numbers, long and short codes thatwill be uniform across the telecom operators and states. All the telecomoperators will be required to allow the delivery of government services throughthese pre-designated numbers, long codes and short codes. Interactive IVR andSMS based interfaces will be made available through the MSDG for serving thediversified needs of residents irrespective of the language they use or theirliteracy levels.

Development of Knowledge Portal and Knowledge ManagementFramework for Mobile Governance

Mobile Government is in a nascent stage in India. In order to enhance theabsorptive as well as the service provision capacities of various stakeholders in

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mobile governance, it is proposed that a state of the art knowledge portal andknowledge management framework shall be developed and deployed that acts asa platform for awareness generation and dissemination.

3.10 Social Inclusion

India is already amongst the world’s fastest growing democracy with the Indianeconomy growing at an unprecedented rate of 8.5% in these past seven years1.However, the question still remains whether the growth has been and will be sociallyinclusive2 whereby it benefits the have-nots and reduces disparities.

A recent OECD report3 suggesting that income inequality is increasing in mostindustrialized countries as a result of globalization and technological progress thatrequires greater skills from workers may have a lesson in point.

Though the said report deals with statistics and challenges faced in far moredeveloped economics, many underlying issues are common with India. Since India isrelatively new to the knowledge economy, but has the advantage of the possibleleapfrogging some of the challenges, we may seek to learn from the OECD experienceand initiate action to ensure social inclusion. The solution to the growing inequality hasbeen suggested as training and education for the low-skilled. “Policies that invest inhuman capital of the work force are needed”, the report concludes.

In fact, the endogenous growth economists believe that improvements inproductivity can be linked directly to a faster pace of innovation and extra investment inhuman capital. Human capital is the formal education, training and on-the-job learningembodied in the workforce. The concept of human capital4 differs from that of thematerial capital in the sense that it cannot be bought or procured the same way materialcapital can be. It can be developed only by way of research, education, the technicalworkforce, scientific discovery and innovation.

Thus in the Twelfth Five Year Plan improving education and training at thelowest levels of economy, which would include imparting improved vocational training,would be an important component of the initiatives towards social inclusion. It is alsonecessary to improve targeting and implementation of social welfare schemes such asMGNREGA, PDS and Pensions. While the former would require facing challenges ofvisibility and awareness, the latter have issues linked with leakages.

Modern technological tools including Information and CommunicationTechnologies (ICT) could be used to great advantage for addressing both these aspects.

To enable social inclusion, in the Twelfth Five Year Plan, the followinginitiatives will be undertaken

1PM’s remarks at the Second Anniversary of UPA-II Government on May 22, 2011, available at

http://pmindia.nic.in/speech/content4print.asp?id=10572

“Social inclusion” broadly refers to the policies aimed at strengthening the capacities of individuals and entirecommunities of people by improving their access to rights, opportunities and resources (e.g. education, employment,healthcare, civic engagement, democratic participation and due process) that are easily available to more privilegedmembers of society and which are key to social integration.3

OECD (2008), Growing Unequal? : Income Distribution and Poverty in OECD Countries; As per the report, inequalities

of income (in terms of Gini coefficient) in OECD countries were higher in mid-2000s than in mid-1980s.4

Ministry of Labour, Finland [http://www.mol.fi/english/information-society1.html]

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E-Learning opportunities and skill development

a. Most e-Learning courses being incubated by Universities and institutionslike C-DAC are not tailored to the needs of rural community, who faceschallenges due to language, awareness as well as absence of such learningopportunities tailored to their needs. AICTE and Ministry of HumanResources Development should actively focus on content creation andstructuring courses to address the aspirations of rural youth. As a channel ofoutreach to such communities, CSC network could be used. However, thecapacity of CSCs will need adequate enhancement – by way of bothsufficient connectivity/bandwidth availability at the Panchayat level andtraining/availability of trainers – to undertake such course/contentdissemination.

b. It is also important to enhance and strengthen the infrastructure and capacityof existing institutions (e.g. schools) to undertake e-learning activities.Efforts would be made to ensure that every school going child has access toInternet. A Portal may also be developed along with awareness andcommunication campaign in respect of such content and delivery channels.

c. Besides content and course creation, it is also important to encouragedevelopment and distribution of innovative and appropriate low cost devices(e.g. low cost ipads) which would enable improvement in e-Literacy andempowerment of citizens/students across the country including rural areas.Government may provide funding support for such innovation.

d. The National Skill Development Corporation (NSDC) is to skill/upskill 150million people in India including persons from rural areas by the year 2022,mainly by fostering private sector initiatives in skill developmentprogrammes and providing viability gap funding. NSDC would cover skillsfrom the organized as well as from the un-organized sector. However, it isimportant to identify and develop databank of the skill gaps taking intoaccount the trends in demand, both in the organized and un-organisedsectors, through standardized survey formats wherein ICT and CSCs couldbe very effective; and modular employable skills are identified for thepurposes of content creation and for delivery through e-learning mode.

e. Basic IT training may be targeted to at least one person per family acrossthe country. At least 50% of the families may be targeted for such trainingin the XII Plan period. In particular, DOEACC as a training agency maylaunch IT based skill development initiatives aimed at hilly States anddifficult terrains of Jammu & Kashmir, Uttarakhand and north easternstates.

Financial inclusion

a. The RBI roadmap for financial inclusion aims to reach about 72,800 villagesof above 2000 population by March 2012. The Pension Fund Regulatory andDevelopment Authority (PFRDA), the apex body to regulate and develop thepension sector, has introduced NPS-Lite which specifically targets theeconomically disadvantaged sections of society and promotes small savingsduring their productive life.

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b. The Government and the Regulatory Agencies should considerincorporation of the Common Services Centres (CSC) network establishedin the rural areas across India, under the National e-Governance Plan(NeGP) into their planning for financial inclusion. It may inter alia bemandated that all the CSCs shall act as Banking Correspondents (BCs).

c. ICT solutions may also incorporate interoperability across banking andother financial channels as an integral component.

d. All Government fund transfers under the social sector schemes such asMGNREGA5 may be carried out to the intended ultimate beneficiariesthrough use of IT and mobile technology.

Health

a. The high cost of tele-medicine equipment has been a hindrance in scaling uptele-medicine initiatives at grassroots level. The Government may enablesuitable business models, including viability gap funding, which improveviability of tele-medicine solutions and enable leveraging ICT for improvingdiagnostic and remote health access to village level. This holds enormousopportunities for rural and remote areas including hill states where thegeographical terrain poses challenges in expanding health care access.

Localized content

a. In our country, English Language is the primary medium used forinformation technology and telecommunication including internet, mobiles,etc. Majority of our population remain excluded thereby. It is important thatthe local language is given due importance and the entire IT eco-systemmade citizen-friendly. Voice based research/facilities may also beencouraged in a significant way. A repository of knowledge and services bylocal people may be created through CSCs along the lines of the EnteGramam model6 of Kerala.

e-Infrastructure

a. The entire ICT infrastructure should seek to synergize and leverage on thecommon e-infrastructure created under NeGP for social inclusion throughboth online and offline means.

3.11 Citizen Engagement

As the government is incorporating ICTs into the delivery of G2C services, thereare limited embedded mechanisms to facilitate the voice and space for participation ine-governance. This is especially true for the weakest and the most marginalised sectionsof society for whom the e-Governance projects are created to serve the most.

5Ref. to the Interim Report of the task Force on Direct Transfer of Subsidies on LPG, Petroleum and Kerosene

Submitted to Finance Minister which recommends an Implementable Solution in a phased manner as well as a Core

Subsidy management platform (CSMS), available at http://finmin.nic.in/reports/Interim_report_Task_Force_DTS.pdf6

For details ref http://www.facebook.com/entegramam or http://entegramam.blogspot.com/

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The problem is compounded by High Rural Population – making outreach and determination of service access

point difficult Low Literacy Rates – necessitating Assisted Access model of service delivery Low Rural Tele-density – lowering the outreach of services in rural areas Multi-Lingual Population – necessitating delivery of services in local languages,

however, there is limited support available for Indian languages in ICT domain

However, a variety of mechanism may be adopted to incorporate and promotestakeholder engagement in e-Governance Projects.

Information sharing: In order to generate awareness and to prepare thecitizens, elected representatives and other stakeholders, wide range ofinformation should disseminated. It includes display of citizen’s Charter withListing services and service levels, roles and responsibilities of officials andescalation mechanism, roles & responsibilities of citizens etc. In addition,regular meetings and interfaces may also used to share information. For manydepartments and services, mobile based voice or text services and web basedpresence also serves as an additional channel for information sharing.

Consultation: Consultative meetings with the stakeholders are to be undertakenat different stages of project cycle at regular intervals. Each intervention shouldbe discussed with the citizens, elected representatives, local civil society groupsand other stakeholders to get their perspectives included in the designing of theinterventions, and thereby increasing the chances of ownership among variousstakeholders. Such consultations may be undertaken both online as well as faceto face.

Joint assessment: Participatory assessment and monitoring with thestakeholders, particularly the identified service seekers, are used as tools forenhancing citizen engagement. These include use of a variety of techniques suchas joint citizen monitoring, meetings with the elected representatives etc.

Shared decision-making and collaboration: A range of participatory planningtechniques including participatory urban planning at the ward level,comprehensive zonal planning as well sectoral plans like Solid WasteManagement (SWM) at the city level may be used for collaborative or shareddecision making. It involves engagement of various stakeholders at every stageof the planning process. The most often quoted example of this technique isfrom Porto Allegre, Brazil.

It is increasingly felt that creating institutional mechanisms for stakeholderengagement is necessary. While the government has already taken many steps such asRTI, proposed ESD Bill to ensure greater transparency and more efficient delivery ofpublic services, it is essential to create an environment which will lead to greaterownership of these projects, create demand driven atmosphere for continuousimprovement of public service delivery, build internal and external readiness forabsorption and usage of ICTs and encourage independent as well as joint assessments ofprojects.

Therefore, a three-pronged strategy of Awareness Creation, e-ReadinessDevelopment and Assessment is being proposed in the Twelfth Five Year Plan. Whilethese may seem like disparate elements, they are closely inter-twined and form averitable virtuous circle.

The policy interventions for each Component of the strategy, Expected Outcomeand the proposed funding required to achieve the said outcome are placed in the tablebelow:

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SNo

StrategyComponent

PolicyIntervention

Action Required Expected Outcome

1 AwarenessCreation &DemandGeneration

MandatoryCitizenEngagement

Proactive andtime-boundconformance toSec 4 of RTI Act

Large ScaleAwareness aboutElectronicDelivery of PublicServices

Framework for CitizenEngagementFramework and Guidelinesfor Social Media UseMandatory Baseline Surveysof all proposed e-ServicesSpecific allocation fordigitalisation of legacydocuments andestablishment of ElectronicGazetteSpecific allocation of fundsfor building capacities to useICT enabled RTI processesSpecific allocation of fundsfor creation of ITinfrastructure for RTIprocessesAllocation of funds forcreation of applications forRTI ProcessesMulti-channel filing of RTIApplication - Use of CSCsto collect applications (to actas APIO, as per Section5(2)) and facilitate citizensin filing RTI applications;Use of RTI Call Centres fortaking RTI application &Use of RTI Portal forrequest for information withlinks to allMinistry/Departmentwebsites of the appropriateGovernmentMulti-channel payment ofRTI fee including telephonebill, online payment, bankdraft, postal order etc.Intensive Mass-MediaCampaign for NeGP, ESDBill as well for individualprojectsIntegration andintensification of grassrootslevels awarenessprogrammes includingdemos, hands on usage etc.Extensive usage of NewMedia – Web and Mobilebased interactions includingsocial networking etc.

Institutionalisation of CEin project formulation,implementation leading togreater ownership andhigher sustainability of e-Gov projects

Wider and fasterdissemination ofinformation

Ease of filing RTIapplications

Increased Uptake ofexisting e-ServicesDemand Generation fornew services

2 e-ReadinessDevelopment

e-ReadinessDevelopment ofGovernmentEmployees

e-ReadinessDevelopment ofCitizens with

Intensive Capacity Buildingwrt basic ICT skills, specificICT and management skillsFocussed Changemanagement programme

Large scale e-Learningprogramme in PPP mode

Skilled GovernmentworkforceFaster& more effectiveimplementationEnhanced projectsustainability

Better uptake of e-ServicesMore effective

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special focus onpeople residing inrural areas,women,SC/ST/OBC,elderly and youth

participation in Knowledgesociety

3 Assessment &Feedback

National e-Readiness Index

Mandatory 3rd

Party ImpactAssessment of alle-GovernanceProjects

Social Audit

Assessment of e-Readinessof all States & UTS andCentral Line Ministries &DepartmentsUse of e-Readiness rankingfor allocation of funds

Use of AssessmentFramework by all Govtstates/ministries/departments

Incorporate Social Audit ine-Gov projects

Informed allocation ofFundsImproved ranking inInternational e-ReadinessIndicesInstitutionalise service userfeedback into the systemImproved projectimplementation

More ownership, bettermonitoring and greatertransparency

3.12 Cyber Security

Cyber Space works through an interdependent network of critical informationinfrastructure, which makes it prone to various vulnerabilities, failures, intrusions anddisruptions. It has revolutionised the way in which Government can deliver its servicesto the citizens, and has made the critical information infrastructure requirement of thecurrent e-Governance applications. With the interconnected infrastructure, thecommon link may lead to new vulnerabilities, other systems may propagate failure,unexpected threats may be possible from intrusion and disruption in other infrastructure.

It has signification impact on the public if these applications fail to meet theexpected service levels. These applications are interconnected, with the informationand communication technologies playing a pivotal role.

To realize the full benefits of the digital revolution, users need to haveconfidence that sensitive information is secure, not compromised, and the infrastructureis not infiltrated. Government also need confidence that the networks are safeand resilient. Achieving a trusted communications and information infrastructure willensure that the e-Governance achieves the full potential of the information technologyrevolution.

With the increase in online transactions, especially in the case of online moneytransfer and other financial transactions, it has become necessary to provide securedcyber space to keep confidence of the service provider, i.e. government and serviceuser. For e-Governance applications, protection of ICT infrastructure is critical and itrequires continuous efforts to secure communication and information infrastructure, andensure trustworthiness of the e-Governance services. To provide trusted e-Governanceservices, secured communications and information technology infrastructure is criticaland it requires continuous efforts to:

Secure e-Governance information systems for critical infrastructure, includingemergency preparedness communications, and the physical assets that supportsuch systems to prevent, deter, neutralize, or mitigate the effects of deliberateefforts to destroy, incapacitate, or illegal access of information.

Strengthen national preparedness, timely response, and rapid recovery in theevent of an attack, natural disaster, or other emergency

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Ensure trustworthy e-Governance services wherein the citizen has complete faithin every electronic transaction with the GovernmentCyber Security is dependent on both technological and human factors. The

Technological solutions are relatively easier to design and implement. The Humanfactors, on the other hand, are much more complex. This requires adopting a ‘holisticapproach’, with equal emphasis on both the above aspects of cyber security. To ensurecyber security, following recommendations may be considered for implementation:

Technological Measures

a. Cyber Security standards for e-Governance applications need to beformulated in collaboration with Industry experts and Academia. Thestandards need to keep in with international standards, with appropriatevetting from the cyber security experts from the industry and academia.These standards could be Generic, as well as, Sector Specific and need to beevolving and dynamic in nature.

b. A common set of e-Governance specific minimum hardware and softwarerequirements related standards needs to be formulated and mandated.

c. Auditing and Certification Mechanisms need to be formalised and mandatedfor e-Governance infrastructure. Periodic audits of cyber securityinfrastructure need to be conducted by a competent authority to ensure thatthe security set-up is up-to-date and all the known threats are neutralized.

d. These standards are required to be reviewed periodically to incorporatelatest leanings and R&D.

e. Identity Management and e-Authentication processes need to beinstitutionalised for various groups of users. Identity thefts need to beprevented by employing the appropriate combination of authenticationfactors based on Knowledge (password, PIN etc.), Possession (hard token,digital certificate, etc.) and Biometrics (fingerprint, iris scan, etc.). In thisregard, DIT has prepared and released a comprehensive Draft National e-Authentication Framework (NeAF) for comments and suggestions from allGovernment departments and all the other interested stakeholders. The draftNeAF covers both web-based and mobile-based authentication approachesfor e-authentication and identity management of all users of Governmentservices.

f. Trustworthiness of the e-Governance transactions needs to be ensuredthrough implementing adequate security measures. A mechanism to certifythe authenticity of Government websites needs to be devised andimplemented.

g. Much higher level of trust needs to be provided in case of MobileGovernance initiatives by employing adequate security measures. Theexisting Security policies at National and State levels need to be reviewed inorder to ensure that they encompass the use of mobile based devices nowconnecting very large number of citizens. Everyone on the network must beuniquely identified and monitored, ensuring the privacy of individual.

h. Security and administration of the various Government domains need to bestrengthened to prevent cyber attacks and data theft. It has been widelyobserved that Government domains (e.g. nic) are frequently andsuccessfully breached due to lack of proper cyber safeguards and securityadministration.

i. Crisis Management, Disaster recovery processes and Business ContinuityPlanning need to be formalised, implemented and mandated for critical andsensitive e-Governance infrastructure. All data centres and critical facilities

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should have a workable Business Continuity/ Disaster Recovery Plan toensure uninterrupted services in the event of any calamity, natural or man-made.

j. To assist research and development of Cyber Security solutions, the relevantdata on cyber attacks need to be shared with designated agencies. This willallow the R&D teams to work on real-time data thus improving the chancesof coming up with solutions for real-life threats and problems.

k. Government should work with groups in academic institutions and theindustry to proactively identify the issues and problems related to cybersecurity and possible mitigation measures.

l. Proper, real-time monitoring mechanism should be established to detectincidences of cyber attack, as it is noted that in many cases, agencies are noteven aware that they are under cyber attack.

m. To evaluate the performance of Security measures, e-Governance specificsecurity metrics are required to be defined.

n. To fulfil the requirement of the continued growth of the internet anddevelopment of new applications leveraging mobile internet connectivity,transition to IPv6 is a long-term solution. This transition should be donemethodically with full consideration of the required security measures todetect and block malicious attacks.

o. Framework for Effective information Sharing and Incident Response isneeded to facilitate coordinated responses by government and otherstakeholders to a significant cyber attack. This will help in not onlyresponding to cyber incidences, but also in pre-empting, predicting andpreventing such incidences in future. Government may work with industryto provide such a framework to improve the planning and placing requiredresources to effectively handle a significant cyber security incident.

Human Factors

a. A national education campaign may be initiated targeting different segmentsof stakeholders to create awareness regarding cyber threats and securitymeasures. As part of this campaign, the best practices should be highlightedin preventing cyber threats and, for those cases where the security has beenalready breached, the process of reporting such incidents should beformalised and made mandatory.

b. In addition to the external threats, focus needs to be laid on how to preventinternal data thefts. Adequate checks and balances need to be incorporatedat critical installations so that data thefts may be prevented. Agenciesentrusted with ensuring the security of such installations need to besensitized about the importance of Cyber Security and various avenues ofdata theft and corresponding prevention mechanisms. Security personneland network administrators need to be trained adequately to prevent internaldata thefts.

c. A capacity building program should be launched for incorporating CyberSecurity related thinking and design. The academia and the industry shouldbe engaged to proactively come up with solutions to mitigate cyber securityrisks through appropriate practices.

d. A Cyber Command may be created within the country’s Defence Services tostart preparing for Cyber Warfare in future.

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Regulatory Measures

a. Data regulation is critical in ensuring cyber security. A competent DataRegulator should be established to ensure that all data originating inside thecountry remains within its limits.

b. A Cyber Monitoring Agency should be established under CERT-In tomonitor all traffic on internet to ensure that undesirable activities arecontrolled.

c. International cooperation in the field of cyber security is critical since inmany cases the data servers are physically located outside the country andthus, getting access to the relevant information becomes extremely difficult.This risk may be mitigated by formalizing treaties/ pacts with other nationson jointly tackling cyber threats.

d. Steps should be taken to create a specific privacy related regulation in Indiafor handling sensitive personal data or information in electronic form.Rules and guidelines should be formulated to deal with sensitiveinformation and give directions to all the concerned agencies to incorporateappropriate security practices and procedures.

An outlay of Rs. 825 Cr. has been sought for this purpose.

3.13 UID Based e-Governance

The Unique Identification project (Aadhaar) has been conceived as an initiativethat would provide identification for each resident across the country and would be usedprimarily as the basis for effective delivery of welfare services to the residents. It wouldalso act as a tool for effective monitoring of various programs and schemes of theGovernment.

The concept of unique identification was worked upon in 2006 whenadministrative approval for the project – “Unique ID for BPL families” was given onMarch 3rd, 2006 by the Department of Information Technology. Project was to beimplemented by NIC over a period of 12 months. On the recommendation of theEmpowered Group of Ministers (EGoM) for collation of the two schemes – the NationalPopulation Register (NPR)/MNIC under the Citizenship Act, 1955 and the UniqueIdentification Number (UID) of the Department of Information Technology, the UniqueIdentification Authority of India (UIDAI) was constituted and notified by the PlanningCommission on 28th January, 2009 as an attached office under the aegis of PlanningCommission. The UIDAI was given the responsibility of laying down the plan andpolicies to implement the UID scheme, to own and operate the UID database and beresponsible for its update and maintenance on an ongoing basis.

Unique Identification Number, now called Aadhaar, would help in bettertargeting of beneficiaries oriented schemes like NREGA, Sarvashiksha Abhiyan, IndiaAwaas Yojana and various state specific beneficiaries oriented schemes by uniquelyidentifying the residents/beneficiaries. It would significantly reduce identity frauds andthereby help in efficient utilization of funds allocated to these schemes. Over a period oftime, this may help in reducing the outlay under these schemes by preventing duplicatesboth under the same scheme and across various schemes.

The project was launched on 29th September, 2010 and over 24 million Aadhaarnumber has been issued till August 2011. Project implementation would be completed

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in mid of 12th plan by providing Aadhaar number (UID) to all eligible residents and willbe in position to offer basic authentication service envisaged under the project.

Aadhaar number should be used to link various records, databases related toresidents to enable offering of various services in an integrated manner. Citizen DataRepositories at the Central and State levels should be used to augment the Aadhaar-based authentication mechanisms and significantly enhance citizen service experience -especially by not repeatedly asking for the information already available with thegovernment. While consolidation of such repositories is desirable, steps would be takenat least to constantly reconcile and redistribute available citizen data in such a manner asto keep such repositories complete and up to date. Interlinking of databases shouldenable a single sign-on platform to create a resident account with government usingwhich residents can access all government services through single window (account).This account should enable resident to update information at one place only which maybe replicated to all interlinked databases. In order to facilitate the above, Guidelines andFramework for this purpose will be framed and issued by DIT

At present lack of identity is one of the main obstacles in financial inclusion ofrural and semi-urban residents. High penetration of mobile phones in India along withAadhaar should be leveraged for financial inclusion of the residents even in remotestarea of the country to provide financial services (such as saving account, loan,insurance, investments and cash transactions etc.). Aadhaar based online authenticationcould be done even through a mobile phone and banks could have businesscorrespondents (BCs) in villages, equipped with a mobile phone, a finger print readerand an ATM kind of software, to enable financial transactions in the village itself. DITproposes to carry out pilot projects in the field of financial inclusion leveraging Aadhaarbased online authentication and mobile technology.

3.14 Existing e-Governance Schemes

3.14.1 State Wide Area Networks (SWANs)

The existing scheme envisages establishing SWAN across the country. Althoughconsiderable progress has been made in the implementation of the Scheme,the rollout to all the States is expected to extend into the Twelfth Five YearPlan.

The Operation of the SWAN in the States / UTs suggests that bandwidth earlierprovisioned for the States (up to 4 Mbps) is not adequate in view of increasein number of applications and its usage. Resultantly there is a functionalrequirement to enhance it in a phased manner keeping in line with the actualrequirement.

In the ongoing scheme Infrastructural Requirement for horizontal connectivitywas not provisioned under the Central funding and the States were expectedto Plan and cater for CAPEX and OPEX.

Accordingly, in the Twelfth Five Year Plan it is proposed to strengthen andUpgrade the networks necessitated by technology enhancements and higherrequirement of utilization for the following tasks/activities :a. Improving network performance optimizationb. Provide more horizontal connectivityc. Interconnect schools, PHCs etc.d. Build redundant connectivity up to Block level

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3.14.2 State Data Centres (SDCs)

The existing scheme envisages establishing SDCs across the country.Although considerable progress has been made in the implementation of theScheme, the rollout to all the States is expected to extend into the TwelfthFive Year Plan.

It is felt that undertaking energy audits of SDCs would be beneficial and mayserve as guidance for ideal roadmap for yet to be setup SDCs to ensure andpromote optimum benefits.

3.14.3 Central Review and Monitoring Mechanism for Core InfrastructureProjects

Presently there is no monitoring mechanism to assess the utilization of theSWANs at the Central level and the one available at the States’ level iselementary. Effective, efficient monitoring tool mechanism needs to beplaced to assess usage of existing infrastructure, plan for futuristicinfrastructure & bandwidth requirement in view of demands from the Statesas a result of expansion in type and number of applications with time.

A Central Monitoring mechanism tool needs to be in place to assess thepattern & extent of utilization of SDCs in the State. This information / datawould aid in Planning and utilization of resources available and theirreallocation for optimum utilization.

3.14.4 Common Service Centres (CSCs)

The existing scheme envisages establishing 100000+ CSCs across thecountry. More than 96,000 CSCs have been rolled out till date. In order toincrease outreach to citizens and to enable access to more citizens in therural areas it is planned to ensure that all CSCs of the first phase are madeoperational and they stabilize in their operations.

In pursuance of the address of Hon’ble President to the Joint Session of theParliament on 4th June 2009 – “The scheme for Common Services Centresor eKiosks will be suitably repositioned to be a network of Panchayat-levelBharat Nirman Common Service Centres to provide government services tocitizens in rural areas”, it is proposed, to reposition the existing scheme ofCommon Services Centres as a network of Panchayat level Bharat NirmanCommon Services Centres and setup additional 150000 CSCs to cover everyPanchayat.

These Bharat Nirman Common Services Centres will function in closecoordination with the Panchayats and will complement the Panchayats indelivering those services of Panchayats which can be out sourced. It ispossible for Panchayats, to use outsourced systems in the village for servicesthat can be outsourced to private sector players (a village entrepreneur)without any distortion to the full public service requirements of suchdelivery of services. Since, in the case of delivery of most services, it is onlysome parts of the service that can be digitised and rendered amenable toprivate sector based delivery, Panchayats can deal with the non-outsource-able parts of services directly, in conjunction with private delivery. The core

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sovereign functions of the Panchayats and those that cannot be outsourcedwill continue to be dealt by the Panchayats themselves. On the other hand,application filing, tracking status, making payment and perhaps alsoreceiving them are examples of parts of services that can be outsourced, butwith close public interest supervision. Such supervision should be done byPanchayats as the institutions closest to people as well to points of privatedelivery of services. The point of decision will remain with the Panchayatswhile the point of delivery can be outsourced to Panchayats.

The strategy and approach for the same have been finalized after intenseconsultations with all stakeholders. The new policy proposes to providefinancial support for broadband connection for CSCs where cheapbroadband is not yet available; and CSCs that do not have a reliable sourceof electricity will be provided with a monthly subsidy to recover aninvestment in solar energy to ensure that CSCs remains operational evenwhen power connection is down.

In order to ensure reach of Banking and Financial Services to all CSCs, it isplanned to enable all CSCs as Business Correspondents in the Twelfth FiveYear Plan Period.

3.14.5 E-District

The e-District Mission Mode Project will be implemented across all the districtsof the country which will enable electronic delivery of high volume citizen centricservices at the district level by undertaking back end computerization of all district, subdistrict and tehsil offices.

3.14.6 SSDG/NSDG

The tasks relating to NSDG has almost been completed. But with theadvancement of technologies there will be a need to revisit the architecture.

The SSDG project had been initiated only about 2 years back and it has beenimplemented in only 2 States so far. It is in an advanced stage of implementation in 3other States. The rollout of SSDG to all the States is expected to extend into the TwelfthFive Year Plan.

3.14.7 India Portal

It is proposed to undertake the Phase – II of India Portal in the Twelfth Five Year Plan.The following major activities are proposed to be carried out in the Phase II of theproject

Government guideline compliant web design templates Reusable Web components Research & Development on Mobile Web, Participative Web, Semantic Web

and Development of Proof of Concepts Maintenance of National Portal of India

a. Widget based UIb. Open Data Setsc. Development of service directory of all e-Government services available

across India.d. Promotion of National Portal

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Consultation, reviews, advisory support and capacity building

3.14.8 Standards

Standards in e-Governance will continue to be accorded high priority in theTwelfth Five Year Plan, to ensure sharing of information and seamless interoperabilityof data and e-Governance applications under NeGP. Under standards, the followingactivities are proposed to be undertaken in the Twelfth Five Year Plan

Formulation of Standards and Taxonomy for various components and in newareas like digital preservation, cloud, GIS, Mobile standards, open source,cyber security etc.

Formulation of new standards for seamless interoperability of services acrossservice providers, departments/ agencies

DIT seeks to make available standardized RFP templates, covering the varioustypes of procurements for e-Governance projects including NeGP, alongwith toolkit and guidance notes, to act as both reference and guidancedocuments to the Line Departments and State Governments in procurementsrelating to e-Governance Projects and to bring about uniformity in approachin respect of common issues and minimize contractual disputes. DIT willsetup an appropriate institutional mechanism to review and vet the e-Governance RFPs as well as to create quality trained personnel on e-Governance procurement on a continuous basis.

3.14.9 Capacity Building (CB)

There is an increased awareness today that e-Government is not abouttechnology but is concerned with the transformation of people and processes,adoption of the best management principles and establishing appropriatepartnerships to ensure sustainability and cost effectiveness. Department of IT(DIT), Government of India has taken up the onerous responsibility ofintroducing e-Governance across departments and across the country, in aphased manner as part of the National e-Governance Plan. Given thediversity of the country with respect to its e-readiness and experience inimplementing projects of such nature in the country, there are significantdifferences in capacities of the States/UTs to undertake such initiatives. It isin this background that DIT felt that it is necessary to adopt appropriatestrategies that involve Capacity Building, to achieve the goals of NeGP.

The Electronic Delivery of Services Act necessitates significant capacities tobe built/upgraded

Capacity Building efforts need to encompass all levels viz. Individual,organisational and society. Developing the vision and strategy and an overallconceptual framework, establishing the organizational structure, acquiringskills and resources, training for enhancing knowledge and skills andchanging habits and attitudes are critical components of a CB effort of such amagnitude and complexity.

The Capacity Building Scheme approved by the Cabinet in Jan. 2008 aims toprovide technical support and specialized skills for e-governance to Statelevel policy & decision-making bodies. It envisages establishment of aninstitutional framework for State Level Strategic decision making andsetting-up of State e-Governance Mission Teams (SeMTs) to provideprofessional support to the States in the areas of Technology, programmemanagement, finance and capacity building. These professional resources are

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to be taken both from Government and from the open market. The Schemealso envisages sensitizing the leadership and senior decision makers,imparting specialized training, Orientation programs for SeMTs and Projecte-Governance Mission Teams, knowledge sharing and bringing ininternational best practices.

While the present scheme of Capacity Building is laudable in that it is a pathbreaking scheme, it was planned only for a period of 3 years after which itwas envisaged that the States/UTs would carry the scheme forward. Further,the Central Line Ministries are not a part of the Scheme. Capacity buildingefforts need to be made more comprehensive and encompass the entire ecosystem.

Knowledge is a strategic resource. Today, knowledge on e-Governance, inthe form of successful e-Governance projects, novel initiatives, reengineeredprocesses, legal changes, PPP models, Project reports, bid documents, etc arescattered all over the country. If this knowledge can be gathered, classifiedand made available, it can be leveraged by others. This would result intoenormous savings in time, money and effort by avoiding duplication ofefforts and reinventing the wheel.

Accordingly, the following are proposed in the Twelfth Five Year Plana. Extend the existing Capacity Building (CB) Scheme for entire

Twelfth Plan Period. Extend the Capacity Building Scheme to theCentral Government Departments through assistance in the creationof the Dedicated Project Teams with a tenure of 5 years.

b. The existing National e-Governance Division (NeGD) under DITwill be further strengthened in order to meet the challenges of abigger NeGP and new initiatives planned to be undertaken in theTwelfth Five Year Plan

c. Sensitization and training for all levels of Government employeesi. Basic IT Skills – Basic Skill Development would aim at

mandating Basic IT literacy/ imparting e-Governanceknowledge (including inculcating the right attitude) for allGovt. Employees. Basic Skill Development will bemethodically imparted to all currently in-service Governmentemployees. This training will also be systematicallyintroduced for all new entrants into Government service.

ii. Advanced Skills - Advanced skills would aim at developingfunctionaries with skills in basic hardware networking,database, trouble shooting, contract and SLA managementetc.

iii. Specialized Skills - Specialized skills for creating CIOs / e-champions, experts in technology, change management,process reengineering etc.

d. Incentivized Certification programmes would be planned and rolledout for Government Employees at all levels

e. An information and knowledge repository will be created andmanaged to address needs of all stakeholders in the e-Governancespace. This repository would include the following:

i. An enterprise-wide Collaboration framework with socialnetworking

ii. A forum for e-Governance practitioners – cutting acrossStates & Departments

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iii. A centralized Document Repository for sharing of DPRs,RFPs

iv. Case Study Repositoryv. Network of experts to guide implementers

vi. Training contentvii. Rich multi-media content for IT literacy for citizens, skill

development, etc

3.14.10 Project Appraisal and Programme Management

NeGP presently comprises of 27 Mission Mode Projects (MMPs). There are stilla large number of sectors which deliver high volume citizen services where ICThas not been systematically introduced. In the Twelfth Five Year Plan, focuswould be on critical projects like e-office to digitize Government information, e-Courts to reduce pendency in the judicial system and new MMPs will beidentified and included under NeGP in sectors such as Education, Health, PDS,Posts, Skill up-gradation, integrated system of crime to adjudication to jail,Safety & Security against crime etc. A mission mode project for IT enablingRTI can be taken up by which would require developing backend processes,including a common RTI portal, for proper information collation andpresentation. The Common Services Centres can evolve as RTI points ofpresence, by having close linkages with community based organisations.

Considering the complexity of the Monitoring and Evaluation requirements, DIThas conceptualized a Project Management Information System (PMIS). ThePhase I of the PMIS with basic functionalities has been rolled out in theEleventh Five Year Plan period. In the Twelfth Five Year Plan, the Phase II ofthe PMIS project is proposed to be implemented which will provide

a. Collection and Monitoring up to the last level of implementation i.e.District, Panchayat, Municipality etc as the case may be.

b. Integration with the various assessment indicesc. An objective view of the health of the project based on specific

indices such as demand take off, quality of service, accessibility ofservice and so on

d. An objective view of the health of NeGP as a whole.

3.14.11 Citizen Call Centres (CCCs)

In concurrence with the NeGP vision of delivering services to the citizens in afast, efficient and timely manner, in the Twelfth Five Year Plan DIT proposes to set upCitizen Contact Centres to help provide informational and transactional, non-emergencyGovernment to Citizen (G2C) services for various departments as identified under theMMPs. It is envisaged that due to the higher penetration of telecom services in the ruralparts of India and the ease of usage of such technology especially for the old,handicapped and women, service delivery through state level contact centres can bevery effective.

4. Summary recommendations

The brick and mortar models of development have limitations with respect to reachingthe last mile of our population. Information Communication Technology offers an

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efficient and speedier solution to deliver public services in a transparent and reliablemanner to every citizen through ICT needs to be leveraged in every aspect ofgovernance. DIT has been able to build the core E-Governance infrastructure (DataCenters, State Wide Area Networks, Common Services Centres (CSCs), Mobile ServiceDelivery Platform) across the country during the 11th Plan which will continue in theXII Plan so as to bring it to its logical conclusion. Also, the focus of the XII Plan will beon leveraging to catapult India in the top quartile of HDI ranking through quantumimprovements in the delivery of Public Services. This will also bring in processefficiency, accountability and transparency. The following actions may be taken up onpriority in this regard:

Quality of Education – Primary, Secondary and Higher: Every child has a rightto get best quality education in his/her local language which is easily achievablewith ICT.

Cost efficient and good quality Health Services: Telemedicine, ElectronicHuman Resource, Surveillance etc.

Skill upgradation through simulated ICT based self-learning modules for betterLivelihoods / Employment

Targetting of social welfare schemes – PDS, NREGA, IAY etc. Safety and security against crime and natural disaster Financial Inclusion.

5. Summary Targets

The following are the targets of the Twelfth Five Year Plan A National Institute for e-Governance (NIG) would be setup as an autonomous

State of the Art National Institute. NIG will also train at least 50 employees fromCentral Government per year on Project Management Certification. Thisinstitute will house

– A Biometric Centre of Excellence– A National Institute of Standards– A Business Process Re-engineering (BPR) cell– A Cyber Security Cell

25 State Level Institutions will be setup/strengthened on lines similar to NIG. In5 of these Institutes, Regional GIS Centres on self sustainable model will beestablished. In another 5 Institutes, cyber security cells will be established. EachInstitute will train 10 employees from State Government per year on ProjectManagement Certification.

CIOs will be setup in Ministries / Departments that are implementing MMPsunder NeGP and Ministries/Departments that are making substantial investmentin ICT in a phased manner.

An Enterprise Architecture (EA) Framework including Data Architecture toprovide a holistic approach in e-Governance project designs would be laiddown.

DIT would create the requisite platform that would enable data generated usingpublic funds to be placed in the open domain.

An e-Governance Innovation and R&D Fund will be created to give adequateimpetus to innovation in e-Governance and m-Governance

DIT proposes to identify common processes, conduct BPR studies and createcommon platforms for sharing of the processes.

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Electronic Delivery of Services (EDS) Bill will be implemented. Assistance willbe given to every Central Government Department in delivering at least oneService in electronic mode and every State Government in delivering at leastthree Services in electronic mode apart from the services which are alreadyidentified in the MMPs under NeGP.

Shared Services Platforms for e-Payment, GIS, call centre, etc. will be created.National Implementation Utilities (NIUs) will be setup to provide services ondemand.

An apps store will be created to promote development of large scale e-Governance and m-Governance applications

M-Governance platforms and frameworks will be created to enable delivery ofpublic services through mobile devices

At least one person per family in 50% of the families will be targeted to providebasic IT training in the XII Plan period. Existing institutions, CSCs, last mileconnectivity etc. will be strengthened and augmented to provide e-education ande-health services. Development and distribution of innovative low cost deviceswill be promoted.

Repository of Localized content will be created through CSCs and voice basedresearch/facilities will be encouraged in a major way

Cyber Security will a major focus area during the Twelfth Five Year Plan Period Existing SWAN, SDC, NSDG/SSDG, India Portal, CSC Schemes will be rolled

out and maintained in all States/UTs. These schemes would be furtheraugmented and technologically upgraded.

The existing CSC Scheme will be repositioned as a network of Panchayat levelBharat Nirman Common Services Centres and additional 150000 CSCs will besetup to cover every Panchayat.

The e-District MMP will be implemented in all districts. Training on Basic IT Skills will be introduced systematically for the existing and

all new entrants into Government service. Advanced skills for developingfunctionaries in basic hardware networking, database etc. and specialized skillsfor creating CIOs / e-Champions etc. will be started. Incentivized certificationprogrammes should be planned and rolled out for all Government employees.

The existing Capacity Building (CB) Scheme will be extended for entire TwelfthPlan Period. The Capacity Building Scheme will be extended to the CentralGovernment Departments.

6. Funds Required in the Twelfth Five Year Plan

S. No. Recommendation Amount (in Rs. Crore)

1 Institutional Infrastructure 432.50

2 Enterprise Architecture 30.00

3 Open Data Platform 25.00

4 Innovation & R&D Fund 550.00

5 Business Process Re-engineering 250.00

6 EDS Act 1150.00

7 Shared Services Platform 500.00

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8 National Apps Store 200.00

9 Mobile Service Delivery Gateway 200.00

10 Social Inclusion 10200.00

11 Citizen Engagement 652.40

12 Cyber Security 975.00

13 UID based e-Governance 125.00

14 Existing e-Governance Schemes 14575.20

Total (in Rs. Crore) 29965.00

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e-Learning

1. Introduction

Information, Electronics, and Communication Technology (IECT) is one of thelargest and fastest growing industries. An impressive economic growth coupled with alarge young workforce with increasing purchasing power has resulted in stimulating ademand for electronic-gadgets and electronic-hardware. The domestic demand forhardware is estimated at US$ 400 billion by 2020(source: Department of InformationTechnology Task Force Report on ESDM). This provides the right opportunity for Indiato become an electronics hardware manufacturing hub to meet its domestic demands aswell as to cater to the demands of the global market. In the past the nationdemonstrated its ability to cater to the global demand for services in the IT-ITESdomain. To sustain its lead in IT-ITES sector and to further capture new opportunities,especially with reference to the electronics hardware industry, there is a need to addressthe gaps in the availability of skilled and technically trained human resources meetingpresent and future requirement, both domestic and global.

Market requirements and characteristics are continuously modified based onboth emerging technologies and changes in customer needs. Thus the existing ITmanpower has to periodically upgrade their skills in order to keep pace with theindustry’s needs. Advancements in IECT have made possible the availability of qualityeducation, 24x7, to millions of people in a cost effective manner. The use of IECT ineducation has opened the doors for “anytime anywhere” learning. Supplementing theformal way of education with E-Learning tools/content and use of IECT in formaleducation is important to facilitate enhanced learning environment; especially whenthere is large gap in demand and supply of quality content and educators.

E-learning mode and the related tools provide a platform for enhanced learning,cost effective delivery, flexibility of learning at the convenience of the learner, uniformquality content delivery, reach ability only limited by the penetration of IECT,promotion of collaborative learning among distributed learners, re-usability of thecontent etc.

Advances in Human Language Technology will offer universal access toinformation and services to the masses in their own language. India is a multilingualcountry with 22 official languages and 10 scripts. It is imperative that tools forinformation processing in local languages are developed and made available for widerproliferation of ICT. This would benefit the people at large and thus pave the waytowards ‘Digital Unite and Knowledge for All’ and bridging the Digital Divide. Thiswould have a spin off effect on the deployment of e-governance applications and boostto the domestic ICT industry.

Creation of e-infrastructure for e-Learning is a very important aspect, essentialto promote this mode of learning, that can also supplement the traditional method oflearning. The Government of India had come up with various programs like NPTEL(for content), NKN (for infrastructure) and National Mission in Education through ICT(NMEICT) for Higher Education, and ICT in Schools for school education. Creation ofcontent in Indian languages; availability of technologies, tools, and standards for Indianlanguages are important and a necessary element. To meet this need, and to build acomplete eco system, DIT is working with various organisations. The e-infrastructure so

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created would be available for use by other sectors such as MSME and Social Sector forinclusive growth.

Due to the improved infrastructure and the higher penetration of mobileservices, and the availability of open source operating systems for mobile; the currenttrend of pervasiveness of availability of video/audio, mobile based learning would bevery useful in reaching out to students all over the country. Augmented Reality (AR) isone of the most disruptive applications for mobile learners. Sophisticated virtualauthoring software and augmented reality are the areas of importance.

Social media technologies are having exponential growth, providing an array ofofferings for online learning. The use of social media as an additional aid in theclassroom can make students learn in new dynamic ways, like studying Geography,connecting with other classrooms and planning field trips etc. Social media outlets offera convenient way to enhance communication among students and teachers, like creatinggroups, exchange of messages and updates, schedule events and have asynchronousclass conversations. Assigning class projects using social media will enable students toparticipate in dynamic learning activities, share book reviews, follow news stories, docommunity service etc.

Thus the vision of the e-learning sub group of Working Group on IT for TwelfthPlan is to work out a road map to generate human resources for the electronics and ICTindustry using ubiquitous learning models in an inclusive manner.

The e-infrastructure, Internet Governance, Human Centric Computing, e-learning and HRD divisions of DIT provide a holistic eco system needed for thegeneration of skilled population which can leverage the use of knowledge effectively forthe economic and social development of the country.

The e-learning sub group has been constituted with three study teams as under:1. HRD Study team to cover HRD, Skill Development, IT Mass Literacy and e-

Learning Technologies including activities of DOEACC Society.2. Language Technology Study Team to cover Technology Development in Indian

Languages.3. e-Infra Study Team to cover e-Infrastructure, National Knowledge Network,

Internet Governance, Digital Library initiatives and Activities of ERNETSociety and NIXI.

This document consists of reports of each study team as mentioned above.

I. HRD & e- learning Study Team Report

1. Background

Human Resources Development activities of DIT are aimed at generation of -trained HR for the manufacturing & service sectors of electronics and ICT industry.Initiatives include identifying gaps emerging from the formal sector and planningprogrammes in non-formal and formal sectors for meeting these gaps. In pursuance ofprojects initiated during the 10th Plan for generation of quality manpower in the area ofInformation Security, VLSI Design; setting up of a Regional Institute for e-Learningand Information Technology (RIELIT) at Kohima, Nagaland for creating skilled

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manpower in the area of Computer Science/IT were continued during the 11th Planperiod.

A ‘Scheme for Manpower Development for the Software Export Industry’ wasevolved which is being implemented by DIT, as a follow up to thediscussions/interactions with various state governments, industry association, academiaand industry representatives. This scheme is aimed at creating course contents,generating mentors & quality faculties and skilled graduates in the InformationTechnology Sector at various locations across India with a view to increasing theemployability of the students.

A Working Group on Human Resource Development in InformationTechnology was set-up to evolve long-term HR strategies and a suitable approach forthe implementation of these strategies for significantly increasing the number of well-trained professionals in line with economic projections, for various IECT and relatedareas. Based on the recommendations of the Working Group, new projects wereinitiated in the area of capacity building for meeting the HR needs of the IECT. Havinggained significant leadership position in the global IT/ITES sector there is a need tomove up the value chain and maintain the leadership position in R&D, Productdevelopment, Electronics and Hardware manufacturing sectors as well.

Government of India is laying special emphasis on Electronics, HardwareManufacturing, R&D and Innovation. There is a need to chalk out special manpowerdevelopment programmes in these areas. DIT through MAIT had undertaken a study onmapping the manpower skills in the IT Hardware and Electronics ManufacturingIndustry. With the envisaged growth of this industry several manpower issues wouldneed to be addressed during the XII Plan period.

Some of these new project initiatives taken in the XI Plan period need to beconsolidated and nurtured into full fledged programmes during the XII Plan period. Inthe context of the National Skill Development Policy which assigned a specified targetof 10 million IT manpower by 2022 to DIT, a special programme needs to be drafted toaddress this issue.

1.1 Manpower Forecasting during XII Plan period

a) NASSCOM's Report Perspective 2020: NASSCOM collaborated with McKinsey &Co. to develop an extensive research report ‘Perspective 2020: Transform Business,Transform India’ in 2009. The objective of this report is to identify opportunities thatindustry can penetrate and provide strategic insights for the industry to reinventbusiness models and offerings that can transform global business through a well-definedcustomer value proposition.

As per the NASSCOM's Report Perspective 2020 global manpower projections by2020 are as follows:

Total manpower requirement – 12.3 million by 2020 (from the current level of2.5 million of the employment).

Projected shortage of 2.3 million by 2020 (0.8 million for domestic outsourcingand 1.5 for global sourcing market).

Additional 1.2 million requirements for innovation-driven scenario (shortage ofhigh caliber talent pool of 3 million by 2020): 3 lakh Ph.Ds required.

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The report does not cover manpower requirement arising out of e-Governanceintroduction.

b) National Skill Development Corporation’s (NSDC) Report- HR & Skill Requirementin Electronics & IT Hardware Sector (2022): Government of India announced theNational Skill Development policy in 2009 and National Skill DevelopmentCorporation (NSDC) was set up. Under this policy a target of 10 million manpower tobe skilled by the 2022 was assigned to DIT. NSDC has recently conducted a survey ofmanpower requirements.

The consumption of Electronics in India was US $ 28 billion in 2005. It isestimated that the demand for electronics (consumption) in India will be US $ 125billion in 2014 and US $ 400 billion in 2020. Out of this, the Indian Electronics and ITHardware sector production amounted to Rs. 947 billion in 2009 and has grown at aCAGR of 16.4% since 2002. The human resource directly employed in the industry isestimated to be approximately 770,000 in 2007. This was about 0.9 million in FY 2009.

The Indian Electronics and IT Hardware sector has 6 key segments, namelyConsumer Electronics, Industrial Electronics, IT Hardware, TelecommunicationEquipment, Electronic Components, and Strategic Electronics. Consumer Electronicsand Telecom Equipments are the largest segments with about 27% share each in totalproduction.

It has been estimated that as demand would continue to grow, there would be anincremental requirement of Human Resource as presented in following tables.

Table1: Incremental Human Resource Requirement –education-wise till 2022 (in‘000s)Incremental HumanResourceRequirement

Ph.DandResearchscholar

Engineers

Diplomaandotherequallycertifiedskills

ITIandothervocationalcourses

Othergraduates suchas B.Sc.

MBA/CA/CWA

10th /12th

Consumer Electronics 14 43 48 35 130 106 105Other (IndustrialElectronics)

14 184 46 30 14 25 147

Computer 25 123 154 62 117 37 99Telecom Equipment 29 230 115 38 86 32 45Strategic Electronics 24 150 89 40 41 19 42Components 38 192 89 110 23 13 220Total 144 922 541 315 412 232 658

source: IMaCS analysis

Table2: Incremental HR Requirement in the Electronics and IT Hardware Industry (in‘000s)Projected human resource requirement2008-2022 (in ‘000s)

2008 2012 2018 2022 Incremental

Electronics and IT Hardware Industry inIndia

906 1446 2870 4129 3223

Consumer Electronics 204 298 532 686 482Other (Industrial Electronics) 107 168 334 567 461

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Computers 193 273 689 810 617Telecom Equipment 184 400 880 759 575Strategic Electronics 69 128 271 474 405Components 149 179 164 834 685source: IMaCS analysis

The Electronics and IT Hardware industry has the potential to grow at aCompounded Annual Growth Rate (CAGR) of about 17% till 2022 and even thereafterconsidering the fact that the GDP is expected to grow at a rate of 7.5% to 8% over thisperiod. Therefore, we expect the production of Electronics and IT Hardware to increasefrom Rs. 844 billion in 2008 to Rs. 7,520 billion by 2022. Consumer Electronics,Computers, Telecom Equipment, and Industrial Electronics would contribute to a largeportion of the size of the industry. This would translate to the overall employment inthe industry increasing from the current level of 0.9 million to over 4 million by 2022.This would translate to an incremental human resource requirement of about 3 millionto 3.2 million.

Table 3: Incremental human resource requirement – function-wise till 2022 (in ‘000s)Incremental human resourcerequirement

R&D Manufacturing

Sales ServiceSupport

Administration

Consumer Electronics 19 241 130 67 24Others (Industrial Electronics) 14 334 69 23 21Computers 19 130 154 253 62Telecom Equipment 23 172 172 172 34Strategic Electronics 49 188 32 83 53Components 111 427 55 38 53Total requirement in the Industry 234 1,492 613 637 248Incremental HR requirement 3,223

source: IMaCS analysis

1.2 Gist recommendations of MAIT for narrowing HR-availability gaps:(a) The IT Hardware and Electronics Manufacturing Industry accordingly address thefollowing issues: Roles and responsibilities of various stakeholders, viz. Government,Industry and Educational institutions, to improve the employability of the humanresources; funding and the implementation mechanism to drive the skill developmentinitiatives.

b) Supply creation – Creation of additional infrastructure to provide human resource tothe industry.

(c) Proposed recommendations for skill development in the Industry:(i) Introducing short term courses and opening training institutes in after-sales

service support.(ii) Introducing short term courses to train people in sales.(iii)Inculcating simple assembly/related skills and shop floor ethics at grass roots

level: Grass root level training initiative should be aimed at imparting basic andadvanced training to unskilled workers to enable them to take up jobs inindustries in a structured manner. The target group includes school drop-outs,10th/12th pass-outs/drop-outs, and casual labourers in key production clusters.This group is engaged in simple assembly/related activities such as helper levelfunctions.

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d) Incremental requirement of 3.2 Million by 2022 – Existing (0.9 Million – FY 2009)(Target refers to helper (+2) level to R&D/Design(Doctorate) level in Electronics,Electrical, EPD, Communications, etc)

e) High calibre Talent pool of 0.14 Million (Ph.D/ Res. Scholars)

The above projections don’t cover additional Manpower requirement arising out ofe-Governance spread, Other than IT industry segment deploying IECT (Information,Electronics and Communication Technology), changes in technology-emergence ofdisruptive technology, social sector, etc This implies that there is a considerabledemand for Skilled manpower across all the levels in the IECT Sector. It can thereforebe inferred that there is justification for this proposal of Skill Development for 10Million in IECT Sector.

2. Targets & achievements and Review Performance of XIth Plan

During the XIth Plan period, the DIT’s initiatives for HRD include identifying gapsemerging from the formal sector, planning programmes in non-formal and formalsectors for meeting these gaps. E-learning initiatives supplement the traditional mode oflearning. These efforts are also intended to promote proliferation of usage IECT inlearning across the full range of academic disciplines with intention to enhance thelearning outcome, and providing platform for collaborations.

2.1 XIth Plan Major Recommendations

2.1.1 To spread the concept of Finishing Schools/Bridge Courses in variouseducational institutions across the country, a programme for capacity building has to beinitiated.

2.1.2 Evolving technologies for new paradigm in pedagogy, utilizing the potentialsof ICT, broadcasting, Digital Library, etc., need to be introduced to provide wideraccess to high quality education, to overcome the shortage of teachers and to increasecapacity.

2.1.3 To set up Centres of Excellence for different domains of ICT viz., EmbeddedSystems and VLSI design, Grid Computing, Web Servers, System Software, GIS, ERP,Mainframes, Nanoscale Design and Fabrication etc., and in other identified areas on acontinuous basis.

2.1.4 Provide adequate budgetary support for significant increase in the number andvalue of scholarships offered to encourage a far greater number of graduates to pursueMasters and Doctoral programmes.

2.1.5 There is a need to ensure that deserving candidates are not deprived of accessto quality education due to economic disadvantages. This should be done by evolving asuitable “Assistance-ship Programme” for the needy and deserving students.

2.1.6 In order to spread IT education as well as to be concurrent with changingneeds of the industry, there is a need to promote education as a whole to be one of theactivities under SEZ. IT is to be given special preference and IT education should bepermitted in the SEZs as one of the activities.

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2.2 Achievements and Review of XI Plan Performance

2.2.1 Human Resource Development in IECT Sector:

In pursuance of the recommendations of the XI plan, projects have been initiatedfor generation of quality manpower in the areas of Information Security and VLSIDesign; and setting up of Regional Institutes of e-Learning and Information Technology(RIELIT) at Kohima-Nagaland, Agartala-Tripura and Ajmer-Rajasthan for creatingskilled manpower in the area of Computer Science/IT. A Scheme for ManpowerDevelopment for the Software Export Industry had been initiated under which variousprojects are being implemented. The Department had also set up a Working Group onHuman Resource Development in Information Technology. The main objective of theWorking Group is to evolve long-term HR strategies and suitable approach for theimplementation of these strategies for significantly increasing the number of well-trained professionals in line with economic projections, for various IECT and relatedareas. A Working Group on IT Mass literacy was formed for spreading IT literacy,evolving an implementation strategy for IT mass Literacy. Accordingly about 18projects were initiated during the XI Plan which are aimed at imparting training atvarious levels in different disciplines of IECT.

2.2.2 Information Security Education and Awareness (ISEA) Project:

The ISEA Project is aimed at the development of human resource in the area ofInformation Security at various levels (Certificate Level to B.Tech, M.Tech & Ph.DLevel). This activity is presently being implemented through 6 Resource Centres (RC)as mentoring institutions and 33 Participating Institutes (PI). The project also has acomponent on awareness creation and imparting training to the Central and StateGovernment Officers on issues related to Information Security. A National CertificationScheme for Information Systems Security professionals at 3 levels has been evolved byDOEACC Society in consultation with academia, NASSCOM, etc.

2.2.3 Scheme of Manpower Development for the Software Export Industry:

A Scheme for Manpower Development for the Software Export Industry whichcovers Training of the Trainer’s Program, Enhancement of quality of IT education incolleges, Virtualization of Technical Education, conducting specialized short termcourses in IT/ITES sector, setting up of National On-line Test System for GraduateEngineers in Information Technology, etc. Accordingly, various projects under thescheme at C-DAC-Noida, IIIT-Allahabad, IIITM-Gwalior, IIIT-Bangalore, IIIT-Hyderabad, State Government of Tamil Nadu, and UP Technical University. Theprojects at C-DAC-Pune, C-DAC-Hyderabad under this scheme have been completedsuccessfully. Till 15th July 2011, 27,618 faculties and students have beentrained/undergoing training under various projects. An ‘Online Examination Software’has been developed by C-DAC, Noida and is at present under advanced level of testing.

2.2.4 IT Mass Literacy

There is a need to empower everyone with basic IT literacy skills so that theyare able to reap the benefits of the spread of Information Technology. IT Literacy wouldact as a vehicle for improved quality of life, accessibility to information, transparency ingovernance and an overall improved socio-economic growth.

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The Parliamentary Standing Committee on IT in it’s 7th report on InformationTechnology (2009-10) on “Demands of Grants (2010-11)” of the Ministry ofCommunications and Information Technology (Department of Information Technology)had recommended that there is a need to maintain data regarding the computer literacyrate in our country.

Keeping the above recommendation in view, Government of India has initiated apolicy level intervention for spreading IT Mass Literacy in the country. For spreadingIT literacy, a Working Group on IT Mass Literacy has been constituted under thechairmanship of Vice Chancellor, IGNOU and members from Ministry of HumanResource and Development, Ministry of Labour and Employment, Ministry of SocialJustice & Empowerment, Ministry of Rural Development, NASSCOM and variousState Governments etc. The objective of the working to evolve a implementationstrategy/Roadmap for IT mass Literacy, eliciting suggestions on various aspects of ITliteracy viz. definitions & standards, approach for development of course material,methodologies for spreading of IT literacy etc.

2.2.5 In addition the following projects are also being implemented

(a)‘Setting up of ICT Academy Kerala (ICTACK)’ with the primary objective to trainfaculties in Engineering, Arts, Science, Polytechnic and ITI’s and support roll out ofHR programme for graduates.

(b) Training Programmes on ‘IT Enabled Soft Skill Enhancement to ImproveEmployability of Engineering and Management Students’ by Anna Universities ofCoimbatore and Chennai have been initiated. As of July 2011, a total of 5,165students from 91 colleges affiliated to Anna University of Coimbatore and 5,610students from 52 engineering colleges affiliated to Anna University Chennai weretrained under these projects. More than 80% of the trained students have beensuccessfully placed in the industry.

(c) 5 DOEACC Centres were set up in 2010-11 at Chennai, Patna, Shillong, Gangtok,and Itanagar.

2.2.6 Development of North-Eastern Region

The Department of Information Technology through DOEACC Society hasinitiated projects for setting up Regional Institutes for e-Learning and InformationTechnology (RIELIT) at Kohima (Nagaland), Agartala (Tripura); and DOEACCCentres at Shillong (Meghalaya), Gangtok (Sikkim) and Itanagar (Arunachal Pradesh).These institutes/centers are aimed to create skilled manpower in the area of ComputerScience and Information Technology and related disciplines for making availableindustry ready professionals and also cater to the needs of the respective states and inthe North-Eastern region. Each RIELIT would have an integrated campus with state ofthe art infrastructure and hostels for students and residential accommodation.

2.2.7 New Initiatives during XI Plan

a) Local Capacity and Capability Building for the Union Territory of Puducherry

The objective of the project is to provide capacity building through training of Teachersand Students in the ICT domain thereby making the students industry ready and

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employable. The project duration is three years. A total of 3150 faculty & students areproposed to be trained in various ICT areas across Puducherry.

b) Three projects in the area of ‘IT Skill development for the disadvantagedsegments of the society’

The main challenge is to reach IT education to remote corners of the country,including rural as well as disadvantaged segments of population such as SC/ST, OBC,disabled persons, minorities, economically weaker sections, etc. Keeping this in view,the following projects have been approved recently to be implemented by DOEACCSociety:

Training in IT Skills to improve the employability of the rural youth belonging toSC/ST & Minority Communities

Training program on ITES-BPO (Customer Care and Banking) to improve theemployability of the rural youth belonging to Women, SC/ST & MinorityCommunities

Training in Electronics Equipment Repair & Maintenance to improve theemployability of the rural youth belonging to SC/ST & Minority Communities

c) Advanced Faculty Training in Emerging Trends of Hardware, EmbeddedSystems and Information Technology - C-DAC Hyderabad.

The project proposal aims to impart advanced training through innovative andparticipative learning-teaching approaches within a project based training framework tothe faculty of engineering colleges in the niche areas of IECT such as UbiquitousComputing, Cloud Computing, Multi-core Programming, Virtualization, ScientificComputing etc. It also aims at orienting faculty in research in the area of Electronics,Computer Science and Information Technology.

d) Development of North - Eastern Region by enhancing the Training/ Educationcapacity in the IECT Area

The presence of DOEACC Society though significant in the North Eastern Regionas compared to rest of the country, most of the centres here are quite small in size andare located in temporary/ rented premises with inadequate infrastructure. Up-gradationwith enhanced capacity is thus felt urgently to create industry ready professionals forthe IT industries. The main objective of the project is to carry out capacity building inthe area of IECT training/education by:

Setting up 6 RIELITs by upgrading 6 existing DOEACC Centres in the Northeastern region. These Centres are at- Guwahati, Imphal, Shillong, Itanagar,Gangtok & Aizawl.

Setting up 12 Extension Centres to reach most of the remote locations within theNE region.

Increasing the training capacity from 3080 per year to 14400 per year from the 5thyear onwards.

2.2.8 E-Learning initiatives

a) Under e-learning tools and technology development, various projects have beeninitiated in the following broad areas:

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Real time video compression and decompression techniques Quality Assurance of e-learning tools and content Content Management and Delivery System (Brihaspati) Personalized learning Interactive simulation environment: Online Labs (Olabs) for School Lab

Experiments. Content generation, adaptation and distribution in m-learning environment for

Mobile phone applications Adaptable e-Learning Accessibility Model for the disabled.

b) An effort has been made towards making these available for wider dissemination: Data Compression Techniques (Image Compression Module and Video

Compression Module) - made available in public domain. Content on Animation & Multimedia (The Certificate Course in Digital

Media Creation is being conducted for 120 candidates sponsored byDONER). E-Learning Contents for e-Security Solutions Developers for PostGraduate/Engg. Students/System Administrators & Scientists has beendeveloped and is available in e-Learning mode.

Quality Assurance of e-Learning tools and content Content Management and Delivery System (Brihaspati) was developed which

acts as platform for deploying content in traditional format as well asSCORM format. This is being used by about 85 institutions.

Content Based Streaming and Real Time Regional LanguageCaptioning of E- Learning Video Data was developed and put in publicdomain

Training of Teachers in E – Learning by DOEACC Society - Imphal,Calicut and Gorakhpur.

c) The following new projects were initiated during the XI Plan and are undervarious stages of implementation :

Design and Development of Service Oriented Architecture based StandardsCompliant e- Learning Framework with Personalized learning Features.

Design and Development of a framework for Adaptive Instruction Video Compression and Decompression techniques “Online Labs (Olabs) for School Lab Experiments” Adaptable e-Learning Accessibility Model for the disabled. Content generation, adaptation and distribution in m-learning environment for

mobile phone applications

2.2.9 Special Manpower Development Program in the area of VLSI Design andrelated software (SMDP-II)

The primary objective of this programme is to train special manpower in thearea of VLSI Design and related software at M.E./M.Tech level (Type-II manpower). Inaddition to this, generation of Type-III manpower i.e. M.E./M.Tech in other areas ofelectronics etc. with at least two courses on VLSI design were also undertaken.

There are 7 Resource centres (RCs) and 25 Participating Institutes (PIs) whichwere involved in implementation of this program. The main elements of this programwere establishment of VLSI Design Laboratories with State-of-the art Hardware

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platform and Electronics Design Automation (EDA) software environment in all PIsand RCs; generation of specialized manpower, conduct Instruction Enhanced programfor training faculty of PIs; India chip program; conduct workshop involvingInternational guest faculty: creation of VLSI Design web sites at the 7 RCs witheducational resource. A total of about 28,403 students have been trained/are undergoingtraining at UG/PG levels. A total of 447 faculty/ Lab Engineers of PIs have been trainedthrough the Instruction Enhancement Programme. Support has been provided to studentand faculty for presentation of papers and International conferences. Twelve Integratedcircuit designs in Multi-Project Chip (MPC) or Multi-Project Wafer (MPW) wereundertaken through the India chip program for siliconization of analog/digital andmixed signal designs done by students of RCs and PIs. Four workshops involvingInternational guest faculty will have been conducted by the end of the 11th plan period.14 publications have resulted from the students & faculty involved in the program. Thecentral web-site for this program can be seen at URL: http://www.smdp2vlsi.gov.in

2.2.10 DOEACC Society

DOEACC Society is an Autonomous Scientific Society under the administrativecontrol of Department of Information Technology, Ministry of Communications andInformation Technology, Govt. of India that was set up to carry out Human ResourceDevelopment and related activities in the area of Information & CommunicationTechnology. The Society has 15 Centres at Agartala, Aizawl, Aurangabad, Calicut (withSouthern regional office at Pudukkottai), Chennai, Chandigarh (with 3 branches atShimla, Lucknow & New Delhi) Gorakhpur (Eastern Regional Office at Patna, Bihar),Gangtok, Itanagar, Imphal, Srinagar/Jammu, Shillong, Kohima/chuchuyimlang, Kolkataand Tezpur/Guwahati with its Headquarters at New Delhi. One more Centre at Ajmerhas been approved recently by DIT.

The Society is engaged both in the formal & the non formal education in thearea of IECT including the development of Industry oriented quality education andtraining in the state-of-the-art areas, and to establish standards and to be the country’spremier institution for Examination and Certification in the field of IECT. It is also aNational Examination Body, which accredits institutes/organizations for conductingcourses particularly in the non-formal sector of IT Education & Training.In the non formal sector, the Society is implementing the DOEACC Scheme onComputer Courses, a joint Scheme of the then Department of Electronics (DOE), nowDepartment of Information Technology (DIT), in the area of Information Technology atthe national level by utilizing the facilities and infrastructure available with theinstitutions/organizations. Under this Scheme, ‘O’ Level (equivalent to foundationlevel), ‘A’ Level (equivalent to Advance diploma), ‘B’ Level (equivalent to MCALevel), ‘C’ Level are being offered. O/A/B/level courses are recognized by MHRD forthe purpose of employment. Since inception of the Society more than 8.3 lakhscandidates have been registered, and about 1.61 lakhs candidates have qualified thevarious DOEACC Computer Courses at O/A/B & C Level.

The following is the gist of the major achievements regarding manpower development.

Activities Achievements1 Information Security

Education andAwareness Project

As of August 2011, more than 35,000 students havebeen trained/ undergoing training in various long-term/ short-term courses at 6 RCs and 33 PIs. Thisincludes: 2000 New M. Tech in IS and M. Tech in

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Cdc-IS; 6500 M. Tech (Retrofit); 2200 B Tech(Retrofit), 3250 Short-term Courses.269 Information Security awareness workshops

have been organized across the country covering 44cities in 23 states and 5 UTs. About 9685 Teachers/Parents/ NGOs, etc. 24,250 school children, and5100 college students participated in the aboveworkshop.

2 Scheme of ManpowerDevelopment for theSoftware Export Industry

As of July 2011, about 16000 students and 11500faculty have been trained/undergoing training undervarious projectsAn ‘Online Examination Software’ has been

developed and is under advanced level of testing.3 Development of North-

Eastern Region (NER)In RIELIT, Kohima, Nagaland so far, 2967 students

have been trained/enrolled. The construction of themain campus at Mereima, Nagaland is underprogress. Construction of Academic Block,Administrative Block and Girls Hostel have beencompleted.In RIELIT, Agartala so far 925 candidates have

been enrolled in various courses. Action for theconstruction of the main campus is initiated.In DOEACC Centre, Shillong 440 students have

been enrolled for various courses.5 DOEACC Centers were Set up in 2010-11 at

Chennai, Patna, Shillong, Gangtok, and Itanagar.An integrated and holistic programme on

Development of NER through Capacity Building inIECT has been worked out

4 E-Learning initiatives The R&D projects initiated in the following areas: Online Labs, Video Compression and

Decompression Techniques; Service OrientedArchitecture e-Learning Accessibility Model for thedisabled; Content generation, adaptation anddistribution in m-learning environment. ContentManagement and Delivery System (Brihaspati) wasdeveloped through IIT Kanpur

5 Special ManpowerDevelopment Program inthe area of VLSI Designand related software(SMDP-II)

Establishing State–of-the art VLSI DesignLaboratory with State-of-the art Hardware platformand Electronics Design Automation (EDA)software environment in all PIs and RCs. A total of 28403 skilled manpower [Ph.D:266; ME/M.Tech (VLSI): 2641, ME/ M.Tech.(elective - VLSI): 4209, BE/B.Tech (elective-VLSI): 21287] were trained/being trained. A total of 447 faculties/ Lab Engineer of PIshave been trained through Instruction EnhancementProgram (IEP).

6 DOEACC Society Since inception of the Society more than 8.3 lakhscandidates have been registered, and about 1.61lakhs candidates have been qualified as of March

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2011 the various DOEACC Computer Courses atO/A/B/C Level.During the XI Plan period about 6500 students were

trained in the formal courses; about 47000 studentswere trained in short term courses; and 3.14 lakhstudents were trained in CCC course.

3. XII Five Year Plan (2012-17)

3.1 Objectives, Targets and Strategies

Objectives To evolve strategies to become world leaders in providing highly skilled

manpower for Information, Electronics, and Communication Technology(IECT) sector.

Plan, assess and prepare a framework for manpower development by assessingthe present and future needs of the industry including emerging areas in IECTrelated disciplines.

To examine the existing infrastructure and constraints for developing highquality manpower and to recommend measures to meet the needs of theindustry in the global perspective including strategies for continuing educationfor professionals.

To study the role of new educational technologies and to recommend modalitiesfor their integration in to the present educational/training system. To suggestmeasures necessary to improve teaching of non- IECT subjects by usingcomputers and the internet for all students.

To assess the impact of IECT sector and suggest measures to improve use ofIECT in various fields for increasing productivity, bringing in socio-economicdevelopment and services like e-medicine, e-education, e-entertainmentespecially to the rural areas.

E-learning initiatives to supplement the traditional mode of learning. Promoteproliferation of usage of IECT in learning across the full range of academicdisciplines with intention to enhance the learning outcome, and providingplatform for one to one, one to many, and many to many collaboration.

Identification of Indian needs and accordingly development of relevant tools,standards and technologies for e-content. Localization of available IECTtechnology for e-learning to suite Indian needs in terms of language, culture andlearning requirement of differently able as well as disadvantaged segments forinclusive education.

To scale capacity building with foundation and life skills being integrated bothin formal and non-formal programmes of learning at all levels.

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3.2 Targets & Strategies

The ongoing schemes would be consolidated and enhanced in its scope to meetthe objectives. The following are the directions in which activities/projects/schemescould be initiated and pursued in the next five years which could also provide continuitybetween XI and XII Plan Periods; learning from the experiences gained so far:

(a) The Information Security Education and Awareness Project which is aimed atgeneration of quality human resource in the area of information security at variouslevels viz. from certificate level to doctoral level, training of faculty, creatingawareness on information security in the country, etc. is scheduled to becompleted by March 2012. DIT is in the process of working out a strategy forfurther carrying this project and its benefits in an integrated fashion, and also toinstitutionalize the mechanism so that the system continues beyond the projectduration, and also to evolve future strategies based on the emerging needs of theacademia, industry and the masses at large. Such a mechanism is proposed to beevolved and the implementation of the same would be carried out during this fiveyears period.

(b) There are several cutting-edge technology areas which are emerging. The marketrequirement and characteristics are continuously modified based on bothemerging technology and change in customer needs. The NASSCOM Reportentitled ‘NASSCOM PERSPECTIVE 2020: Transform Business, Transform India’has identified a set of emerging technology areas which would transform thebusiness. This inter-alia include Artificial Intelligence, Multi-core programming,Cloud Computing, Biometric Identification, Ubiquitous Computing, collaborativeonline interaction, Pervasive IT Security, intelligent information gathering andprocessing, flexible IT and Green IT etc. This list could be taken as a startingpoint for identifying potential emerging areas and launching HR initiativesassociating all the stakeholders’ viz. academia, industry/industry associations.

(c) One of the key issues that would emerge is handling e-Waste in the coming years.We would need to train human resource to develop systems to handle disposal ofe-Waste through a reverse supply change.

(d) DOEACC as a part of skill development initiatives in the area of IECT woulddevelop a suitable skill testing and certification framework which would beclosely linked with the industry requirement and industry associations.Government of India has a plan to set up National Qualification Framework underNational Skill Development Policy evolving standards, testing and certification ofvarious skill levels. DOEACC initiatives could be a part of this national effort incollaboration with relevant Sector Skill Councils .

(e) The Government of India is laying emphasis on promotion of IT Hardware andElectronics Manufacturing Industry. A study on the manpower requirement onthis segment has made several recommendations regarding the manpowerinitiatives that are to be taken up. In line with these, it is proposed to launchvarious short term and long term courses in the emerging areas like ElectronicsProducts Design & Production Technology covering various branches ofElectronics viz. consumer electronics, medical electronics, communications, etc.There is also need to address the requirement of quality faculty in this area as thisis an inter disciplinary programme.

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(f) Requirement of trained human resource for application of IT in other sectors like:Automobiles, Construction, etc. this will not only increase the usage of IT in othertraditional sectors but also help those sectors to grow further with the increasedefficiency of resource management due to use of IT and sector specific ITapplications.

(g) Requirement of evolving technologies for a new paradigm in pedagogy,assessment and evaluation, utilizing the potentials of IECT, through a nationalfaculty development programme (FDP), empowering faculty to be learner–centricand to use enabling technologies as support, leading to a professional certification.

3.3 DIT’s Skill Development initiatives in IECT

The National Skill Development Policy announced by the Government of Indiato take advantage of the demographic dividends (viz. 55% of the Indian are expected tobe under the age of 25 while in the developed world 60% of the population is expectedto be old) and spur in all inclusive growth has set a target of creating 500 million skilledpersons by 2022 win an emphasis on inclusivity so as to deal with the divides of gender,rural/urban, organized/unorganized, employment and traditional/contemporaryworkplace. The DIT has been listed as a part of these skill development initiatives andhas been given a target to train 10 million persons by the year 2022. In line with this,detailed project proposals are being worked out to obtain the approval of the CompetentAuthority. The proposal involves the following components:

As a part of skill development initiatives, the capacities of DOEACC and C-DAC would be enhanced to generate 10 million skilled manpower by the year 2022starting from diploma level right up to doctoral level and in line with the emergingindustry/market/society needs. The Central Government scheme for providing financialassistance for setting up of ICT Academy in each State/UT under PPP mode byrespective State Governments/UTs along with industry/industry associations has beenproposed. These IT Academies would help in improving the quality of the faculty invarious colleges in Tier II and Tier III cities.

3.4 E-Learning initiatives

a) Content adaptation (including personalized learning). Creation of high qualityinteractive simulation environment like (i) Impact of plastic on environment inlong span (iii) simulation for Indian environment, culture and language (iv) Globalwarming (v) Effect of population increase (vi) Online Labs (Olabs) for School LabExperiments etc. M-Learning has to be made de-facto part of e-Learning, bringing inmobile as part of e-Learning environment to increase the reach and penetration of e-Learning.

b) Cloud solutions for e-Learning to enhance the use of advanced web based tools ataffordable cost for scheduling, project management, documentation, multimediaproduction tools in different stages of e-Learning environment is becomingimportant. Accessible Learning model through e-Learning for “Differently AbleChildren” (Work could be carried out closely with domain experts in the instituteslike NIMHANS, Bangalore, NIMH, Hyderabad) etc. Design and Development ofService Oriented Architecture based Standards Compliant e- Learning Frameworkwith Personalized Learning Features to support Peer-to-Peer Learning.

c) Open Educational Resources (OER) – use of ICT for locating right content. Focusshould be set towards quality, standards, accreditation of e-Learning courses and

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industry acceptance to enable the learner to gain employment opportunities.Extensive Groups working in the area of open source and open content will play acrucial role in e-Learning in the future.

d) Content Authoring Tool for Indian languages as well as for the creation of Contentfor the differently abled. Creation and formation of e-Learning ontology withArtificial Intelligence.

e) U-Learning framework utilizing power of wireless technologies and cloudcomputing. Build effective game environment for learning for specific target groups.ICT and DTH services can play a vital role in bringing services accessible to learnersat any locations. Building a content creation framework and structure to enable highdegree of personalization and adaptation. Standards would be worked out forachieving unification of content & platform and to take care of various availablebandwidths along with their limitations.

f) The efficacy of e-Learning, virtual class, & virtualization of Learning has not yetbeen fully understood and the potential of these has not been fully emphasised andexploited. Collaborative e- learning technologies need to be explored in detail.There is a need to setup virtual university for IT/Computer Science by effectivelyleveraging the potential of e-Learning methodology. The tools/technologybuilt/developed now will find immediate use when looked at along with the NationalMission in Education through ICT and the ICT@schools programmes of MHRD.

g) For effective private participation, Government could help by establishing qualitystandards, establishing accreditation arrangements and wide dissemination ofinformation.

4. Implementation Plan

The technological advancements in Electronics and ICT sectors are verydynamic. Therefore, there is a need to regularly monitor and identify the niche areas,estimate the manpower demand and supply gaps which need to be developed in thecountry along with potential institutions. In order to identify, evolve and implementspecific projects as per the above strategy Working Groups (WGs) would beconstituted/re-constituted.

i. Working Group on HRD in IT – To identify the gaps from the demand andsupply of human resources emerging from the formal sector. Planningprogrammes in the non-formal and formal sector for meeting the demand.

ii. Working Group on E-learning: To evolve projects for e-learning tools andtechnologies

These Working Groups would have members from Industry, Academic / ResearchInstitutions, Government Organizations / Societies and Industry AssociationsThe Working Groups in particular would

Identify thrust areas and assessing the skilled human resource requirements alongwith the institutions to carryout training and education programmes in these niche-areas

Work-out details of the capacity building programme in identified thrust areas

Identify the state-of-the-art infrastructure required for setting up labs for trainingin emerging areas

Identify the academic institutions with appropriate expertise where the training thetrainers programmes could be launched

Identify the areas for setting up the Centres of Excellence

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Work out details to strengthen linkages between R&D / academic institutions andIndustry

Identify the R&D societies and academic institutions with similar expertise in theidentify areas and link the two to carry out joint R&D initiatives.

Identify steps needed for linking IT & Electronics industry with academicinstitutions

Activities like - identification of thrust areas, institutions and working out of otherdetails of infrastructure etc. would be carried out by end of June 2012. This would befollowed with initiation of appropriate activities / projects in the identified areas in theremaining 4 years and in the consolidation of the achievements and workout a roadmapfor the XIII Plan would be carried out in the 5th year.

The working Group would meet about twice in a year. The Working Group willalso review the on-going activities in the identified thrust areas and suggest mid-coursecorrection wherever required.

Sub-Groups may also support these Working Groups, wherever needed, to workout in-depth details of the activities mentioned above.

To facilitate usage of infrastructure created under the government support in theidentified institutions and identified areas, wider publicity would be given by providingdetails of the infrastructure & institution on DIT web site; publishing in the leadingNews Papers; and publicizing in seminars etc.

5. Recommendations for XII Plan

Existing Manpower Development Schemes be reviewed for this utility. Thecontinuation of the schemes be linked to the its outcome being positive.

Specific manpower development programmes need to be initiated in the frontierareas based on the immediate requirements of the Industry. These inter-aliainclude Multi-core Programming, Cloud Computing, Biometrics, UbiquitousComputing, pervasive IT security, intelligent information gathering, processingand Services, flexible IT and Green IT.

Phase II for the Information Security Education and Awareness (ISEA) projectneeds to be launched in a structured manner at a large scale and in an integratedfashion with various kinds of courses ranging from short-term to long-termcovering both formal (certificate level to doctoral level) as well as non-formaleducation with a focus on operation, design, research & development. Thisprogramme would also need to cover various sector specific requirements fortraining specialized manpower aiming at high-end product design & development.Further, there is a need to create cyber security awareness at a large scale to coverthe schools, colleges, SMEs, Industry segments (other than IT) which uses ITextensively, general public at large, government employees, e-Governance (bothusers as well as implementers), law enforcement agencies, detective agencies,judiciary along with hands on training etc. Hence, there is a need to work out aholistic programme in an integrated fashion and also to institutionalize themechanism so that the system continues beyond the project duration and also toevolve future strategies based on the emerging needs of the academia, industryand the masses at large.

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In order to effectively harness the benefits arising out of our demographicadvantage, it is essential to create capacity building infrastructure for generationof skilled human resource. (a) Close Industry-Academia-Govt. inter-relationshipis advocated. Curricula be designed and updated on a periodic basis in order tomatch the industry requirements. Faculty upgradation programme be undertakenin order that skill sets of faculty keeps pace with the changing requirements of theindustry. The infrastructure of the National Knowledge Network (NKN) beleveraged to achieve the stated objectives of improvement in the deliverymechanism, quality of students and faculty. (b) DIT to liaise with MHRD andother institutions to effect course curricula revisions/updations.

Further, there is a need to shift our focus from ‘operation/maintenance of IECTsystems’ to the ‘next generation design and development’. Creation of specializedCentres/institutions for the programmes to focus on emerging areas such asCryptology, Cryptanalysis, Crypto-design, Algorithm design and development,Hardware realization of VLSI, FPGA, Boards, and systems, and Policy Research,etc. to create compatible and contemporary eco-system nationally andinternationally.

Initiation of specific programmes for IT Management courses like e-Waste, GreenIT, Change Management, Software Product Development, Media and contentmanagement with small form factor devices, Managing Collaborativeenvironments, Packaging and documentation etc.

R&D projects would be initiated in the area of e-learning tools,technologies and pedagogy inter-alia content adaptation, personalized learning,creation of high quality interactive simulation environment, Open EducationalResources (OER), Adaptable e-Learning, Accessibility Models for the disabled,Ubiquitous Learning, Augmented Reality, , gaming environment for learning forspecific target groups etc. Use of Cloud Computing, social media and socialnetworking for e-learning need to be explored.

There is a need to integrate formal and non-formal system of education byintroducing the concept of Virtual University or Central University with multiplecampuses and blended learning mode. The credits earned in the non-formalsystem to be recognized for award of certificates in formal system.

There is a need to collaborate with the IT-ITeS Sector Skill Council under NSDCto establish National Occupational Standards(NOS) across levels with an aim toscale quality capacity for IECT industry.

Redefine and establish standards related to ICT Literacy for the masses. Launch anational programme to create and empower ICT awareness to use as a tool andto increase employability.

Formalize international (mutual) recognition of academic degrees andcertifications, and encourage internationally renowned academic institutions toestablish campuses in the country.

An integrated and holistic project for the development of North eastern regionthrough capacity building in the IECT sectors need to be taken up.

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As a part of skill development initiatives, the capacities of DOEACC and C-DACwould be enhanced to generate 10 million skilled manpower by the year 2022starting from the diploma level right up to doctoral level and in line with theemerging industry/market/society needs. The Central Government scheme forproviding financial assistance for setting up of ICT Academy in each State/UTunder PPP mode by respective State Governments/UTs along withindustry/industry associations has been proposed.

Use of disruptive technologies like Augmented Reality, 3D Virtual Environments,Using of “clickers” to Engage Students and Enhance Learning abilities

Initiatives so that all the engineering colleges offering Computer Science/ ITprograms to necessarily have industry attachment/collaboration on the model ofmedical college-hospital tie up.

Mandate may be given for all IT/ Software companies with a turn over beyond alevel to necessarily adopt an engineering college/ research institution forpromoting research/ innovation and provide test beds/ markets for the research/innovation taking place in academic/ research institutions. Collaboration of theabove nature would be encouraged.

With the emergence of country-wide high bandwidth broadband networks likeNational Knowledge Network, NMEICT, etc there is a need to build HR centricapplications such as Virtual Labs, country wide Virtual Classrooms, etc. to ride onthese platforms for improving the quality of students, faculty as well research, etc.

Need to bring in an ‘IT Mass Literacy’ movement for inclusion of all the citizensof India (especially the rural and the far flung areas) in the IT revolution. There isa need to create the benchmarks for functional literacy for various segments,design course-ware in multi-lingual format for multi-modal delivery (includingthrough mobiles, Common Service Centres (CSCs), State Resource Centres(SRCs), Adult Literacy Centres, etc).

Continuation of SMDP in VLSI Design and related software in Twelfth Plan withenhanced scope and coverage in terms of number of Institutions as well as targetselected disciplines like: Biomedical, Signal processing, Communications,Embedded system, etc. in order to bridge the talent demand supply gap by 2022,in an integrated fashion, and also workout an Institutional mechanism. The focusshould be at post graduate and doctoral level program.

There is a need launch an integrated and holistic capacity building programme forElectronics Product Design and Manufacturing Technology covering entire layerof human resources development (including faculty development) starting fromcertificate level upto PG/Doctoral level covering the areas of right frommanufacturing/production floor upto product Design and Development as well asapplied research. Short term skill oriented courses in Sales/after sales support,assembly operations, packaging etc. would also be launched. Such programmescould be designed on similar lines and based on the experience gained inimplementing projects like ISEA and SMDP.

Setup specialized institutes for semiconductor design with Government andindustry players as key stakeholders to achieve rural inclusion in the

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semiconductor revolution in India by replicating “the KarMic kind of model andaid” in enabling such set ups in tier-III cities and rural areas to encourage seniorsecondary and higher secondary graduates to take up a career in semiconductordesign industry. Faculty can be encouraged to take up part-time/weekend coursesin these setups. Create a pool of skilled labor for the semiconductor designindustry

Initiatives for the proliferation of IECT uses in important sectors/resources critical(Sectoral-Electronics) for sustainable growth (in terms of preservation ofenvironment, as well as cost) like: Construction, Automobile, Textile, Mining,Agriculture, Food Processing, Preservation and Storage, InfrastructureMaintenance, Management of forests and water resources etc. and creating aleadership position for India in these sectors. To take it forward specialization ofeducation focused on Sectoral-Electronics at Graduate, Post-graduate andDoctoral level with right blend of academia and industry participation are need tobe explored.

Colleges/Academic Institutes/Government Bodies can provide sabbaticals to theirfaculty-members/experts/specialist for higher education or to work on industryprojects. Companies-consortium can attract research-oriented talent by providingbenefits such as sponsoring higher technical education (M. Tech, M.S., Ph.D etc.).

Companies-consortium should take initiatives such as organizingfaculty/expert/specialist development programs by inviting faculty-members/expert/specialist to work on live industry projects with a view to fosterdesign skills and latest technology know-how.

Expenditure incurred by the students/professionals towards skillenhancement/continuing education is to be made 100% deductible from theincome for income tax purposes. In the case of students who have taken aneducational loan for regular programmes in IT education, similar tax benefits areto be given to their parents/guardians. A portion of the education cess may beearmarked for higher education.

II. Language Technology Study Team

Technology Development for Indian Language (Human Cantered Computing)

1. Background

The 10th Plan research efforts were directed during the 11th Plan to reach-out tothe citizen through language software CDs launch in 22 Indian languages.

Standards in the Natural Language Processing (NLP) and Development oflanguage resources are the key components of the advanced language technologies.TDIL Programme is taking initiatives in this direction by working with the internationalorganizations such as Unicode Consortium, World Wide Web Consortium (W3C),ELRA etc. Many initiatives are being taken to develop linguistic resources and tools.

The programme is also playing a catalytic role for wider proliferation of Indianlanguage technology products and solutions by making them available to common

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people through Data Centre in addition to the resources for research for the languagetechnology researchers.

2. Objectives, Targets & Achievements of 11th Plan:

2.1 Objectives: TDIL Programme supports activities related to Research &development, Proliferation and standardization of Language Technologies for Indianlanguages so that advantages of ICT reach to the common people in their ownlanguages.

2.2 Targets & Achievements: Following projects / activities were initiated to meet theabove objectives.

2.2.1 National Roll-Out Plan: Software tools and fonts for 22 Indian languages namelyAssamese, Bengali, Bodo, Dogri, Gujarati, Hindi, Kannada, Kashmiri, Konkani,Maithili, Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Santhali,Sindhi, Tamil, Telugu and Urdu languages have been released in public domain. Thesesoftware and tools are also freely-downloadable from the website www.tdil-dc.in andhttp://www.ildc.gov.in.

2.2.2 Consortium Mode Projects: A number of Consortium projects were initiated inmission mode to develop various technologies as detailed below:

Development of English to Indian Languages Machine Translation System - In thePhase-1 of the project Machine Translation Systems for 8 Language Pairs: English toHindi, Bengali, Malayalam, Marathi, Oriya, Punjabi, Tamil and Urdu in the tourismdomain with varying efficiency have been completed. These MT systems have beenmade available on the TDIL Data Centre Website http://www.tdil-dc.in.

Development of Indian Languages to Indian Languages Machine TranslationSystem - In the Phase-I of the project Machine Translation Systems for 9 BidirectionalLanguage Pairs: Telugu-Hindi, Hindi-Tamil, Urdu-Hindi, Kannada-Hindi, Punjabi-Hindi, Marathi-Hindi, Bengali-Hindi, Tamil-Telugu, Malayalam-Tamil with varyingefficiency have been developed. These MT systems have been made available on theTDIL Data Centre Website http://www.tdil-dc.in.

Development of Cross-Lingual Information Access system (CLIA): In the Phase-I,CLIA System for 6 Languages: Hindi, Bengali, Tamil, Marathi, Telugu and Punjabihave been developed for Tourism domain. Some of the resources developed underthe CLIA consortium mode project has been made available at TDIL Data Centrehttp://tdil-dc.in

Development of Optical Character Recognition System (OCR): In the first phasealpha version of OCR System for 9 Scripts: Bengali, Devanagari, Malayalam, Gujarati,Tamil, Telugu, Kannada, Oriya, Gurumukhi have been completed.

Development of On-line Handwriting recognition system (OHWR): In the Phase-Iof the project which was exploratory phase technology has been tested for 6 Scripts:Hindi, Bengali, Tamil, Telugu, Kannada and Malayalam.

Development of Text to Speech (TTS) and Automatic Speech Recognition (ASR)Systems: Alpha versions of TTS systems in 6 Indian Languages namely Hindi,Marathi, Bengali, Tamil, Telugu and Malayalam languages have been developed under

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Phase-I. Project for development of Automatic Speech Recognition (ASR) Systems foragricultural domain has been initiated for six Indian Languages namely Hindi, Bengali,Assamese, Tamil, Telugu and Marathi.2.2.3 Development of Language Technology ResourcesAnnotated Text Corpora and Speech Corpora: Annotated Text Corpora for 11Indian languages i.e. Hindi, English, Gujarati, Punjabi, Oriya, Bengali, Telugu,Malayalam, Marathi, Urdu, Konkani and Tamil languages has been developed.Annotated Bodo Speech Corpora of 50 hrs has also been developed.

WordNet: Wordnet for eleven Indian languages i.e. Assames, Bodo, Bengali, Gujarati,Kashmiri, Konkani, Manipuri, Nepali, Oriya, Punjabi and Urdu is being generated.

Development of Open-Type fonts in Indian Languages: Sakal-Bharti’ multilingualfont with matching characteristics of font-size, height and width supporting 22 IndianLanguages has been developed. This unique font is being made available free for E-Governance application development in Indian languages.

2.2.4 StandardizationUnicode for Indian Scripts: 12 Indian scripts used for representing 22 official languagesof India including Vedic Sanskrit characters and symbols have been represented in theUnicode Standard. Newly adopted Indian Rupee Sign has also been encoded in theUnicode and ISO Standard. It has also been incorporated in the INSCRIPT andQWERTY KeyBoard layout as per BIS notification.

2.2.5 Human Resource Development in Indian LanguagesUnder this initiative M. Tech. in Computational Linguistics/ Knowledge Engineering/Language technology and PG Diploma in Language Technology courses were initiatedat premier universities/ institutions to fulfil increasing demand of trained manpower inthe area of Natural Language Processing. About 30 students are passing out each year towork in NLP area.

3.0 Review of Performance of 11th PlanThe programme played a catalytic role for wider proliferation of Indian languagetechnology products and solution by making them available to common people throughData Centre in addition to the resources for the research for the language technologyresearchers. DIT has released the Language-CDs, containing software tools and fontsfor all the 22 constitutionally recognized Indian Languages, viz., Assamese, Bengali,Bodo, Dogri, Gujarati, Hindi, Kannada, Kashmiri, Konkani, Maithili, Marathi,Malayalam, Manipuri, Nepali, Oriya, Punjabi, Sanskrit, Santali, Sindhi, Tamil, Telugu& Urdu. These Language-CDs are being shipped to the users on formal request and canalso be downloaded from the website http://www.ildc.in. Machine Translation facilityfor English- Indian Languages (8 language pairs) and Indian Languages- Indianlanguages (4 language pairs) has been made available through TDIL Data centrehttp://www.tdil-dc.in.

4.0 12th Five Year Plan:

4.1 Objectives, Targets & Strategies

In the 12th Plan period the strategy of development of language independent coreengines will be pursued further for improving the efficiencies of the engine for thelanguages worked upon during 12th Plan and also extend it to more languages. Thesetechnologies will also be supported by speech interface and accessibility from mobile

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platform. The greater thrust needs to be laid on development of linguistic resources tosupport these research efforts. The work will be continued on evolving standards ofW3C.4.2 Continuing Activities:

4.2.1Technology Development: The implementation of the various technologydevelopment projects initiated during last phase of the XI Plan in the areas of MachineTranslation, Cross Lingual Information Access, Optical Characters Recognition system,Optical Hand Writing Recognition system will continue up to middle of the 12th Planperiod.

4.2.2 Language Resources Development: Development of the Language TechnologyResources such as wordnet, annotated text & speech corpora, fonts will be continued forall the Indian languages. Annotated Speech Corpora for Mobile, Wireless and In-vehicleEnvironments; Reference Phoneme set; Speech Recognition Grammar andPronunciation Lexicon for 22 Indian Languages will also be continued. Development ofthe Language Technology resources Tree Bank, Morphological Analyzers etc for all theIndian languages would also be taken up.

4.2.3 Human Resource Development in Indian Languages: In order to foster theLanguage Technology Research in India trained manpower in the form of Masters andDoctorates need to be generated during the Twelfth plan period. This will augment theinnovations in terms product development in Language Technology area and fulfilincreasing demand of trained manpower in the area of Natural Language Processing.

4.3 New Developments to be taken up during the 12th Five Year Plan

4.3.1 Lab to Land

Already developed, Machine Translation (MT) Systems & Optical CharactersRecognition (OCR) Systems will be improved in terms of efficacy and domaincoverage. New language/ pairs would be undertaken. The MT & OCR systems wouldbe deployed in real life user application/ organizations in their workflow. Text-to-Speech in Indian Languages (TTS) integrated with screen reader.

Appropriate measures are required to be taken for software engineering andsystem integration of the technology. Hence a policy for converting IP to Product isproposed to be evolved.

4.3.2 Research & Development:

Speech: Projects for Development of Domain specific Low and Medium VocabularyAutomatic Speech Recognition in Indic Languages; Development of Continuous SpeechRecognition (CSR) in Indic Languages to develop dictation systems; Phonetic searchengine in Indian Languages; Experimental Study of Emotion Recognition andDevelopment of Speaker Recognition Systems would be undertaken.

4.3.3 Mobile: Initiatives would be taken for enabling mobile and wireless devices forIndian languages application. Technologies for Distributed Speech Recognition forNext generation Mobile and Wireless Systems for Indic languages would be developed.

4.3.4 Machine Translation, OCR, OHWR & CLIA: Next Steps

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Cloud computing approach will be utilized for development and deployment of MTSystems. OCR System for Handwritten Documents & Manuscripts will be explored.OHWR System will be improved in terms of efficacy for deployed in real life userapplication/ organizations in their workflow and new languages would be undertaken.Cross Lingual Information Access technology will be improved and would be tried forgeneral domain to make it a general purpose Indic language search engine.

4.3.5 Indian Languages to English Machine Translation:There is an urgent need to develop Indian Languages to English Machine TranslationSystem as there are many applications which need translation from regional languagesto English. One such application could be the judicial system, which provides allproceedings in the lower courts in local languages, whereas at the higher courts wherethe proceedings are in English. Many cases are pending for the want of translation fromregional languages to English. However the efficiency of such a system needs to be veryhigh. The project will be initiated to develop Indian Languages to English MachineTranslation system.

4.3.6 Compilers in Indian Languages:Development of compilers for a programming language based on Indian languageswould be initiated so that a non-English speaking person can also write software.

4.3.7 Small & Medium Enterprise Language Technology Innovation Programme:During the 12th Plan period, SME sector proposing to work in the Indian LanguageTechnology programme, would be promoted for development of innovative LTsolutions, by providing active technological mentoring, training and hand-holding andmaking available language technology, resources and tools at minimal cost/ free of cost.

4.4. Standards:

The development standards is a dynamic process, DIT will continue to participate in theUnicode Consortium, World Wide Web Consortium (W3C), and ELRA etc to representIndian scripts/ languages in the futuristic standards / web technologies andrecommendations. Standardization of International Phonetic Alphabet (IPA) for Indiclanguages; Internationalization of various W3C Standards; Standards for voice browserneed to be evolved

4.5 Localization - National Localization Research & Resource Center(NLRRC): The objective of the proposed National Localization Research and ResourceCentre (NLRRC) is to spur the Localization activities in India. With the availability oflanguage CDs in 22 constitutionally recognized Indian Languages has created thenecessary environment wherein now localization activities in all sectors especially theMSME sector is poised for takeoff. The major activities planned to be covered toachieve above objectives are Indian Languages e-content, Localization of IT & Non ITProduct, Entrepreneurship and Incubation, Making Available Localization Platform,Identification of Glitches and formulation of Standards, Localized ProgrammingLanguages, Tools (IDE), Course curriculum, Localized applications for MobileDevices, Localization Certification, Localization Tools & Technology DemonstrationLab, Technology Support to Application provider and Joint PhD Program with worldrecognized Universities under NLRRC Project.

4.6 Dissemination - TDIL Data Centre setup for providing language technologyservices and resources would be further strengthened. Apart from acting as a single

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source of Indian language resources, it will also check the quality of data, fix errors ifany, and proactively identify gaps in the data, and efforts will be made to makeavailable good quality linguistic resources.

5.0 ChallengesNatural Language Processing is a complex technology area. It is also inter-

disciplinary area of research in which Computer Scientists, Language experts/ Linguistshave to work together. Building any language technology product requires a largenumber of language resources, hence there is need to tap existing e-data from othersources in addition to developing through funded effort which are under development.There are very few researchers working in the NLP area and constant effort are requiredto expand the team all over India to address requirement of all 22 constitutionallylanguages.

6.0 Implementation Plan:Development projects are being implemented in consortium approach.

Depending upon the available expertise, the whole task is divided into horizontal andvertical tasks. Basic core modules of the necessary technology are being developed as ageneric horizontal part (applicable across the languages) of the engine and language partas a vertical, under which different languages can be embedded. Mechanism will beevolved to seed new research groups by initiating the new researchers & new languagesin the existing consortium.

7.0 Institutional Framework:Various research organizations like C-DAC, premier academic institutions like

IITs, IIITs, IISc., Universities and standardization bodies such as ISO, Unicode, W3Cetc. are already involved however, private universities/ institutions are also proposed tobe funded wherever competence is available since the involvement of the computerscientists, computational linguists, language experts from each region is very essentialto complete the mandate of research in this complex area. There may be a need tocreate a separate entity to drive this national agenda.

8.0 Recommendations:8.1 Technology Development Projects in mission mode to continue for development of

language technologies, which is a complex inter-disciplinary area of research. Inaddition human resource development in Localization/Language technology alsoneeds to be addressed. Projects may be executed in consortium mode so that theexpertise of language experts, linguists, computational linguists & computerscientists from all regions can be pooled towards extending the researchmethodologies to cover more Indian languages. Modern project implementationtechniques be adopted in order to have impact of these projects in promotinginternet in the regional languages.

8.2 A National Localization Research & Resource Centre (NLRRC) to be set up tofocus on the development of software tools, standards, linguistic resources,localization of e-governance services, creating awareness and providing training andconsultancy. This will be followed by setting up of Regional/State level centres tospread the localization activity in all domains across India.

8.3 Standards play very vital role in the development of technology. There is a need toevolve standards for Language resources, evaluation methodologies, Phonemeinventories & Localization standards so that these resources can be used seamlessly

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for the development of the language technologies. The standards for multilingualweb to be evolved in close coordination with W3C India/W3C, ICANN, IETF, IPA,GALA, ISO, Unicode, ELRA etc.

8.4 Projects for the development of linguistic resources will be undertaken as goodquality linguistic data is crucial for the development of language technology.

8.5 Technologies and components for voice browser in Indian languages would bedeveloped.

8.6 Mobile phone is emerging as an access device, and hence initiatives would be takenfor enabling mobile and wireless devices for Indian languages.

8.7 The Intellectual Property generated under TDIL needs to be productized throughTechnology Incubation/MSME innovation Programmes involving ICT Industry.Suitable policy measures need to be evolved as the laboratory technologies need tobe augmented in terms of re-writing the code using software engineering practices,training the language technology engines with more linguistic data, customize thetechnology for a particular domain, integrate the technology in work flow of theclient as per their requirements or package the technology as a product depending onthe nature of technology being commercialized & whether it has to be web based orstand-alone. The market needs to seeded in the language technology area throughproactive engagement with domestic ICT Industry.

8.8 Suitable online/offline models need to be evolved for enhancing the multilingualweb-content.

III. e-Infra Study Team Report

1.0 Background:

World economy is increasingly dependent on the Information CommunicationTechnologies. ICT acts as the vehicle for knowledge creation, diffusion, productivity,economic growth and improved quality of life. The World Summit on Informationsociety (WSIS) recognized the need for an inclusive, human centred and geared todevelopment. IT is the key enabler for today’s innovations and improvements in livesand society. ICTs proliferation drives improved Quality of life in wide array of areasand benefits of a digital society.

E-Infrastructure comprises network connectivities, digital infrastructure, tools,facilities and resources that are needed for advanced collaboration and includesintegration of various technologies such as Internet and broadband technologies,computing power, bandwidth provisioning, data storage, grid based resource sharing,cloud computing, digital technology and its storage. It deals with issues, policies,projects, programmes and schemes related to e-infrastructural facilities in the country.Though the core areas like telecom, Internet are being dealt with by other Departmentsand Ministries, the Division continues to work for the gap areas, and act as supplementto the requirements of an overall, comprehensive and world class e-infrastructure in thecountry.

The ubiquity and pervasiveness of the Internet or the World Wide Web has theattention of economies and stakeholders. Formulation of public policy on aspects of

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access, openness, security and privacy therefore is increasingly becoming global andinclusive in its processes and structure. Every Stakeholder is well aware of the need foractive participation in the processes of formulation of governing principles forallocation, management and sharing of the three Critical Internet Resources viz., RootServers, Internet Protocol addresses and Domain Names. Critical infrastructure plays animportant role in the country’s financial and governance systems.

Internet Governance encompasses all activities pertaining to the managementof the Critical Internet resources and other Internet Protocol related technologies,applications, resources and services. This implies formulation of regulatory andgoverning policies of shared principles, norms, rules, decision making procedures andprogrammes’ that shape the evolution and use of the Internet by Governments incooperation/consultation with the private sector and civil society concerning theirrespective roles.

The Internet Proliferation and Governance aims at the enhancement of theNational Information Infrastructure and to establish the principles and guidelines forproliferation of Internet in the country. This entails formulation of governing policies,programmes and processes for establishment of a stable and robust InternetInfrastructure; development of next generation networking protocols and technologies;development of traffic engineering and monitoring principles; development of standardsand framework and applications and service management models and most importantlygeneration of skilled manpower resource pool. All of these inline with global policiesand best practices and technology standards while garnering the active and fullparticipation of all stakeholders from the government, private sector and civil societyboth domestic and international level.

2.0 Objectives

The main objectives has been to formulate and support programs, schemes andprojects to sustain the growth of Information & Communication Technologies (ICT)and to meet the challenges of free market due to proliferation of new and diverse marketentrants leading to highly competitive markets, there is a continuing need to invest inquality infrastructure, promote R&D efforts, create intellectual property incommunications, Internet and broadband technologies, and address the related policyissues.

2.0.1 Enhancement of requisite infrastructure and resources to provision low cost andgood quality Internet access to citizen of India;

2.0.2 Removing barriers of cost, language and accessibility to provision equitableaccess to Internet and its benefits to all citizen

2.0.3 Promotion of Research and Development in areas of intelligent or self regulatingnetworks, applications and services

2.0.4 Evolution of framework and standards on Internet Technology and services suchas to facilitate e-Governance in the country

2.0.5 Formulation of governing principles for allocation, management and sharing ofCritical Internet resources namely Internet Protocol addresses and Domain Names

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2.0.6 Bring out Best Practices and Public Policy on Internet openness, security, privacyin cyberspace

2.0.7 Evolution of dynamic and quality assured online applications and services for thecitizenry

Presenting India’s position on Public Policy issues of Internet and its Governance in theinternational forums and Internet management and governing bodies.

2.0.8 To help promote Internet and its associated critical infrastructure such as InternetExchange points, robust domain industry and National Internet Registry etc.

2.0.9 To establish an ultra high speed National Information network connecting allmajor knowledge institutions ( both academic and research ) for creation of knowledge,collation and dissemination and bring out a collaborative network with other globalnetworks for sharing of research, knowledge and application on network technologies.

2.0.10 Digitize, preserve and web enablement of the vast data available in physical form(old manuscripts. books in the libraries etc.).

2.1 Targets

2.1.1 Establishment of effective and resilient Internet Exchange Point to facilitatepeering among Internet Service Providers and keeping the domestic traffic within thecountry and provide cost effective internet access to citizen of India;

2.1.2 Support R&D in network technologies, Internet Traffic monitoring principles tomake the country’s network resilient and self-regulating;

2.1.3 Promoting web Hosting services, Introduction of URLs and proliferation ofcontent in Indian Languages on Internet;

2.1.4 Promote use of the country code Top Level Domain Name (ccTLD) .in and

Internationalized Domain Name (IDN) ccTLDs .भारत;

2.2 Achievements of 11th Five year plan and ongoing activities

E-infrastructure development projects in technology frontier and high priorityareas, societal areas were taken up and supported. Some of the policy matterspertaining to the IT investment regions, Universal electronic accessibility aspects werealso addressed. Projects on Research, Development, Standards and Policy formulationand implementation for Proliferation and Governance of Internet in India supported.Department actively engaged with international bodies like ICANN, APNIC and IGFwhich are responsible for allocation and management of Critical Internet Resourcessuch as IP Addresses and Domain Names and management of the Internet.

Seven Internet Exchange Points (IXP) by NIXI under DIT, NIXI nodes locatedat Bengaluru, Chennai, Mumbai and Noida are IPv6 ready.

Disaster Recovery Management - Two Data Centers have been established inDelhi and Chennai towards disaster management with an uptime of maximum 5minutes.

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2.2.3 3 Root Servers (I, F & K - Any cast)

2.2.4 Registry Operations for the Top Level Domain Names .IN Registry(www.registry.in). Presently, 80 Registrars have been accredited to offer .IN domainname registration worldwide to customers. It has helped in proliferation of Web hostingin the country and enhancement of Indian. language content in the Internet. Approx. 10lakhs .IN Domain Names registered by mid 2011

2.2.5 Formulation of Policy resolution for setting up Information TechnologyInvestment Regions (ITIR) in States/UTs to promote investment in theIT/ITES/Electronic Hardware Manufacturing (EHM) units, the Government has decidedto attract major investment by providing a transparent and an investment friendly policyto set up Information Technology Investment Regions (ITIRs).

2.2.6 To provide Universal Electronic Access to the Physically Challenged, a policyhas been formulated by the Department for providing a framework to benefit them interms of availability of technology, tools, products (hardware and software), standardsand guidelines and to promote research & development.

2.2.7 Created a world class Bio IT research and Training facility in India

2.2.8 Establishment of 100 ICT Vocational Centers for Skill Creation for the Childrenwith Disabilities in the area of Information Technology

2.2.9 Establishment of 100 Centers for helping mentally retarded children and theirparents and teachers. in the country.

2.2.10 Establishment of Knowledge Data Center at Anna University, Chennai to host e-content developed in the engineering courseware and deliver the same for the benefit ofstudents of the affiliated colleges in the tier II and tier III cities.

2.2.11 Establishment of 250 ICT centers in schools in rural areas of Rajasthan in theDistrict of Ajmer and Jaipur.

2.2.12 Data repository of 80 million pages have been created through digitization of oldmanuscripts and books and made it available through web portal.

2.2.13 Development of Next Generation Internet Design Technologies indigenously forInternet Proliferation. Indigenous development of ultra-fast Ethernet Router.Development of an adaptive, self-configuring network solution EDGE (Enterprise WideSelf-Managed Network Solution) has been developed which works with the TCP/IPprotocol, applicable to LAN, WAN, Intranet, Extranet and Internet networks.

2.2.14 Development of transport layer technology for Cloud Computing through theintegration of Light Trails technology for optical layer multicasting, dynamic bandwidthallocation and sub-wavelength granular support at low price points.2.2.15 Establishment of traffic engineering principles and models for establishment ofan MPLS based QoS assured network.2.2.16 Development of networking principles, protocols and tools for self managednetworks including an IDS (Intrusion Detection System) called N@G.

2.2.17 DIT has supported IPv6 dual stack architectural setup of existing IPv4 networksto make the backbone networks of Education Research Network (ERNET), NationalInternet Exchange of India (NIXI) and other organizations under the DIT.

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2.2.18 DIT is also leading the IPV6 deployment Pilot Projects initiative under theNational IPv6 Roll out plan of the Ministry of Communications and InformationTechnology.

2.2.19 Promotion of Multi-lingualisation of Internet – Domain Names, User Interface

tools and Content in Indian Languages - .भारत top-level domain called

Internationalized Domain Name (IDN) in 7 Indian Languages and Scripts namelyHindi-Devanagari, Bengali- Bengali, Gujarati – Gujarati, Punjabi – Gurumukhi, Tamil –Tamil, Telugu - Telugu and Urdu – Perso Arabic. ICANN has already delegated countrycode Top Level Domains (IDN ccTLDs) in these seven Indian languages.

3.0 Review of Performance of XI Plan

The programmes, policies and projects under E-Infra and internet Governance haveresulted into the following tangible outcomes during the 11th Five Year Plan 2007 -2011:

- Establishment of effective and resilient Internet Exchange Point in the country.

- Development of Next Generation Internet Design Technologies indigenously forInternet Proliferation

- Development of Network engineering and traffic monitoring principles,

- Establishment of Information Technology investment regions,

- Formulation of policy on Universal electronic accessibility

- IPv6 deployment and readiness

- Promotion of Multi-lingualisation of Internet;

- Promoting web Hosting services, Introduction of URLs and proliferation of contentin Indian Languages on Internet;

- Establishment and effective adherence to web based applications and servicesguidelines by the government departments;

- Establish principles of Internet Based communication and governance to help createa transparent and paperless governance mechanism in the country,

- Status of NKN as on 31st July 2011: 18 Points of Presence (PoPs) have beenestablished. 252 institutions have been connected and 29 virtual class rooms havebeen set up.

4.0 Objectives /Targets of 12th Plan for 2012-17

4.1 Objectives

To integrate various e-infrastructure development elements such as Broadband,Telemedicine, telecommuting, tele-cottages, Overlay networks for education health,Rural communications, community business centers etc. under a commonprogram/scheme in DIT

To formulate projects, schemes, programs to create world-class infrastructure fortraining and research in the emerging technological fields such as genomic,space sciences, environmental research etc.

To create necessary interfaces so that the e-infrastucure in industry, business,commerce is UID compliant and integrated nation wide.

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o To set up wherever required to Internet exchange points and Peeringpoints.

o To implement Internationalized domain names in country code top leveldomains in Indian languages.

o Setting up of National Internet Registry (NIR).

o Policy formulation for making Data Warehousing and Data Storage andmanagement viable to attract Web Hosting Services within the country;

Establishment of resilient and continuous network backbone such as to redefinebroadband as 5 Mbp/Sec and ensure outreach of Internet and its

benefits beyond the barriers of cost, language and literacy to the most unreachedsection of the Indian diaspora;

o Development of applications and services for promoting IPv6 usage anddemand;

o Development of modes and mechanisms for usage computer and Internetby the non-English literate populace of the country;

o Development of voice based tools for Internet based applications andservices such as the vertical domains of Health, Education andAgriculture for the common people in Indian Languages;

o Development and ease of access and availability of - Indian languageinterface tools, contextual and local language content;

o Roll-out and promotion of URLs IDN TLDs and other Internet BasedServices and content in all Indian Languages;

o Development of an Indian Search Engine supporting English and IndianLanguage web content;

o Establishment of standards for Interoperability of tools and technologiesindependent of platform and language;

o Digitize,preserve and web enable the data available in physical form.

o Development of mechanisms and policies to promote secure financialtransaction, secure Internet based communication and services;

o Development of mechanisms to promote cloud based models of datatransaction, storage and services beyond geographical boundaries;

o Establishment of policies and regulatory mechanisms for mitigation ofcyber crime such as identity theft, phising, cyber squatting, etc.

5. Strategies for 12th Plan

5.1 Fund projects for development of tools and technologies for proliferation of ICTinfrastructure in unreached areas localization of Internet, fund research projects foridentifying evolution of next generation networks.

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5.2 Incentivize Technology, tool, content and other resource development includingsupport in local languages.

5.3 Establish multi stakeholder expert panels to identify the gaps and implementationhurdles at the last mile and to formulate the annual and five year thrust areas forproliferation of Internet and internet based applications and services as also theprinciples of sharing and governance of the Internet itself;

5.4 Establish Interest Groups to establish vision and mission and national action plansand programmes

5.5 Evolve and fund cutting edge and futuristic projects for evolution of next generationnetworks, tools and technologies for proliferation of Internet and its benefits to theunreached

5.6 Increase awareness about the use and benefits of ICT infrastructure for socialdevelopment, quality of life, and economic growth and over all national development;

5.7 Examine and extend the Indian IT Act (Cyber Laws of India) to promulgate lawsand regulations to mitigate cyber crimes and to promote cyber transactions whether dataor financial

5.8 Ensure India’s active role in global forums for public policy formulation ofgoverning principle for the sharing and management of the three critical internetresources namely; Root Servers, IP Address and Domain Name allocation.

6.0 National Knowledge Network6.1 Background: The Government’s decision to set up National Knowledge Networkwas announced in the Budget Speech, 2008-09. A High Level Committee (HLC) wasset up under the Chairmanship of Principal Scientific Adviser to the Government ofIndia to coordinate and monitor the establishment of the NKN. An initial phase wasinitiated by upgrading all the 17 PoPs NICNet to handle gigabit capacities; a corebackbone with 2.5 G was set up and 19 institutions were connected to demonstrate thefeasibility of applications such as country-wide class rooms and collaborative research.This initial phase was inaugurated by Hon’ble President of India in April 2009.

In March 2010 the Government approved the establishment of the NationalKnowledge Network (NKN) at an outlay of Rs.5990 crore, to be implemented by NICover a period of 10 years.

6.2 Objectives:

The Objective of the NKN is to inter-connect all knowledge institutions acrossthe country with a high speed data communication network to encourage sharing ofresources and collaborative research. These would cover over 1500 Institutescomprising of all Universities, and Research Institutions. The core and associated linksto about 1500 institutions are likely to be established in a span of 2-3 years.

The Network will consist of an ultra-high speed Core (multiples of 10Gbps andupwards), and over 1500 nodes. It is scalable to higher speed and more nodes also. TheCore shall be complemented with a distribution layer at appropriate speeds. The

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participating institutions can directly or through distribution layer connect to the NKNat speeds of 100 Mbps /1 Gbps.

The application areas envisaged under the NKN include Agriculture, Education,Health, e-governance, Grid Computing (High Performance Computing).

NKN would facilitate creation, acquisition and sharing of Knowledge resourcesamong the large participating Institutions; collaborative research; countrywideclassrooms (CWCR) etc. and help the country to evolve as Knowledge Society.

MHRD launched in February 2009 a National Mission on Education throughInformation and Communication Technologies (NMEICT) which aims at providinghigh quality personalized and interactive knowledge modules over the internet/intranetfor all the learners in Higher Education Institutions in any time anywhere mode. TheMission has two major components viz., (a) content generation and (b) connectivityalong with provision for access devices for institutions and learners. The Mission aimsto create high quality e-content for the target groups and on the other, it wouldsimultaneously extend computer infrastructure and connectivity to over 18000 collegesin the country including each of the departments of 400+ universities/deemeduniversities and institutions of national importance on a single point rental basis throughthe Department of Telecommunications (DoT), in a manner that would permit theirseamless integration with the National Knowledge Network (NKN). NMEICT wasapproved by CCEA with an outlay of Rs.4612 crores in January 2009.

6.3 Strategy for XII Plan

There is a need for creation of side-way-networks so that benefits of NKN cantrickle-down to smaller institutions. Also there is a need to initiate sectoral networks forreaping the applications in the key sectors like Agriculture, Health etc.

There is a need to promote research and innovation in the last mile connectivityto reach the connectivity to the institutions and schools at remote locations. There is aneed to explore the possibilities for data centric instruments and devices that could beplugged into NKN to get the benefits of high speed and low latency networks.

7.0 ERNET India

ERNET (A scientific Society under DIT) is providing state-of-the-art Networkservices, such as, Internet/Intranet, web hosting, domain name registration, mail hostingand data hosting to academic and research institutions of the country in various domainsviz,. health, agriculture, schools, higher education, science & technology.

R& D projects in networking like connectivity to Global Research Networks, IndianGrids and other e-infrastructures world wide.

Research and development in the area of data communications and its applications,such as, mobile IPv6, 6lowPAN, Cloud computing, IPv6 network and QoS, MPLS.

Human resource development in the area of ICT and related applications for skillcreation, with focus on Networking.

Consultancy and implementation of ICT projects on turnkey basis, theirmanagement and monitoring. ERNET has executed projects like establishment ofICT Vocational centres for skill creation for the children with disabilities in the areaof Information Technology, Citizen centric community centres in the remote areasof the country, e-linkage to the farmers of the country, connectivity to schools, datacentres, digital repositories, campus-wide LAN, etc.

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New Value added services, such as, Data Centre services, co-locatedservers/services, Disaster Recovery services, Managed Security services,Video/voice conferencing, Web/Multicast services.

Expertise and exposure of ERNET in varied domains would be immenselybeneficial / suitable for establishing, managing and monitoring the various country widee-infrastructure projects on turnkey basis as well as integration of various e-infrastructure elements, overlay of networks for education, rural communication,community business centres, and creation of necessary interfaces for UID.

ERNET is working in the areas of networking and IT research and applicationdevelopment; training to use IT infrastructure and applications; establishment of ITinfrastructure in the country like for academic/educational sector in the schools,engineering institutes, farmers, community centres, research institutes, physicallychallenged school children, teachers, etc; project implementations like knowledge datacentre, cloud computing, video conferencing, MIS,; network test beds; etc. These arebeing operated, managed and monitored by ERNET. Services and exposure of ERNETmay be used for creating, uploading, updating, operating, managing and monitoring ofdata banks/ MIS with cloud computing, help line system; etc.

8 Challenges

8.1 The challenges can be seen in terms of lack of a unified networking plan forproviding e- infrastructure to all and reaching the unreached, lack of availability ofresources etc.:

8.2 Lack of bandwidth and Internet service providers in rural and semi-urban areas

8.3 Incompatible and differing network standards and protocols

8.4 Fast technological obsolescence

8.5 Non-availability of trained manpower

8.6 Perception of Internet as an English language based technology among the non-English speaking public

8.7 Low literacy levels;

8.8 Lack of bandwidth and Internet service providers in rural and semi-urban areas;

8.9 Very low accessibility to Internet, prohibitive bandwidth cost; unergonomic designof the Computer8.10 Lack of awareness about the benefits of Internet amongst the public at large;

8.11 Lack of localized content;

8.12 Lack of adequate outreach of Indian Language interface tools and technologies forgarnering Indian language content and services

8.13 Industry and Civil Society inertness in undertaking localization of Internet

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8.14 Incompatible and differing network standards and protocols

8.15 Fast technological obsolescence;

8.16 Non-availability of trained manpower; etc.

9. Implementation plan and methodology:

Identification of thrust areas, gap areas, edge areas, for initiating e-infrastructuredevelopment projects

Establishment of a working Group for proposing, initiating, assessing andmonitoring of national level programmes and schemes.

10. Institutional Framework:

The institutional framework will consist of organizations and stake holders fromGovernment, industry, academia, including ERNET India, C-DAC, NIXI etc.Adoption of PPP model involving a multistakeholder approach.

11. Recommendations for XII Plan

11.1 Initiate key programmes and projects in specific areas of internet technologies andproliferation. (a) DIT to liaise with DoT in order to ensure that broadbandavailability improves and it is economically affordable, in order to foster Internetgrowth. The implementation of proposed National Optical Fibre Network's(NOFN) connectivity to the Panchayats be dovetailed with various e-Governanceinitiatives. (b) DIT to take the initiative for integrating efforts of public andprivate players towards developing a ubiquitous Internet Search Engine;integrating technologies developed in Indian languages. (c) DIT and DoT liaise tointegrate the infrastructure of NKN, NOFN, NMEICT, ICT @ Schools in order tocreate the genesis of a knowledge economy.

11.2 Steps need to be taken to improve the Network Readiness Index.

11.3 Infrastructure for user training and experiential learning methods.

11.4 Infrastructure initiatives with special focus on sectors like: Education, Health, andAgriculture.

11.5 Initiatives for Creation of National Cloud Computing Infrastructure, capacity forits regulation, development of open standards to address interpretability issues,amendments in IT Act keeping in view the challenges and opportunity presentedby this new technology creating paradigm shift across the IECT uses andownership.

11.6 Initiatives for identification of use and application of IECT for productivityenhancement cutting across the various sectors. Exploring the possibility ofestablishment of National Productivity Network (NPN) to facilitate use of IECTfor enhancement of productivity.

11.7 Developing supercomputing capabilities and operating system as well asmodelling capabilities; there is also a need to focus on building next generationdata centres.

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11.8 Initiation of Indigenous active components programme focused on: Transmission,Security, Routing, Threat management, Optical Chain, etc.

11.9 Initiatives for creation of capacity in Specification, Standardization, Certification,and Sanitisation in IECT keeping in view Indian needs for security, and economicstability.

11.10Creation of Centers of Excellence for the Programmes to focus on: Cryptology,Cryptanalysis, Crypto-design, Algorithm design and development, Hardwarerealization of VLSI, FPGA, Boards, and systems, and Policy Research to createcompatible and contemporary eco-system nationally and internationally.

11.11Initiatives for creation of sideway network, so that every school going child tohave access.

11.12Steps towards innovative Last mile connectivity for Data Centres and FacilityVirtualisation through Cloud-Computing.

11.13Creation of unmediated environments / ambiance (like Wikis) for contentdevelopment through participation, and the user will make contribution themselves.

2. Summary Targets / Recommendations for e-learning

Specific manpower development programmes need to be initiated in the frontierareas based on the immediate requirements of the Industry.

Phase II for the Information Security Education and Awareness (ISEA) projectin an integrated fashion and also to institutionalize the mechanism.

In order to effectively harness the benefits arising out of our demographicadvantage, it is essential to create capacity building infrastructure for generationof skilled human resource.

R&D projects would be initiated in the area of e-learning tools,technologies and pedagogy.

There is a need to integrate formal and non-formal system of education byintroducing the concept of Virtual University or Central University withmultiple campuses and blended learning mode.

An integrated and holistic project for the development of North eastern regionthrough capacity building in the IECT sectors need to be taken up.

As a part of skill development initiatives, the capacities of DOEACC and C-DAC would be enhanced to generate 10 million skilled manpower by the year2022 starting from the diploma level right up to doctoral level and in line withthe emerging industry/market/society needs. The Central Government schemefor providing financial assistance for setting up of ICT Academy in eachState/UT under PPP mode by respective State Governments/UTs along withindustry/industry associations.

There is a need to build HR centric applications such as Virtual Labs, countrywide Virtual Classrooms, etc.

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Need to bring in an ‘IT Mass Literacy’ movement for inclusion of all thecitizens of India (especially the rural and the far flung areas) in the ITrevolution. There is a need to create the benchmarks for functional literacy forvarious segments, design course-ware in multi-lingual format for multi-modaldelivery.

Continuation of SMDP in VLSI Design and related software in XIIth plan withenhanced scope and coverage.

There is a need launch an integrated and holistic capacity building programmefor Electronics Product Design and Manufacturing Technology covering entirelayer of human resources development (including faculty development) startingfrom certificate level upto PG/Doctoral level covering the areas of right frommanufacturing/production floor upto product Design and Development as wellas applied research.

Create a pool of skilled labor for the semiconductor design industry.

Technology Development Projects in mission mode to continue for developmentof language technologies, which is a complex inter-disciplinary area of research.

A National Localization Research & Resource Centre (NLRRC) to be set up tofocus on the development of software tools, standards, linguistic resources,localization of e-governance services, creating awareness and providing trainingand consultancy.

Technologies and components for voice browser in Indian languages would bedeveloped.

Mobile phone is emerging as an access device, and hence initiatives would betaken for enabling mobile and wireless devices for Indian languages.

Initiate key programmes and projects in specific areas of internet technologiesand proliferation.

Infrastructure initiatives with special focus on sectors like: Education, Health,and Agriculture.

Initiatives for Creation of National Cloud Computing Infrastructure, capacity forits regulation, development of open standards to address interpretability issues.

Exploring the possibility of establishment of National Productivity Network(NPN) to facilitate use of IECT for enhancement of productivity.

Initiatives for creation of sideway network, so that every school going child tohave access.

Creation of unmediated environments / ambiance (like Wikis) for contentdevelopment through participation, and the user will make contribution themselves.

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3. Projected Financial Requirements for XII Plan(Rs. in Crore)

2012-13 2013-14 2014-15 2015-16 2016-17 Total

1.HRD Study Team

HRD 150 150 200 200 200 900

Skill Development 1500 1500 1000 1000 1000 6000IT Mass Literacy 30 20 20 20 20 110

e-Learning Technologies 50 50 50 50 50 250

DOEACC Society 40 40 50 50 50 230

Sub-total 7490

2.Language TechnologyTechnology Development inIndian Languages

65 75 80 90 90 400

Sub-total 400

3.E-Infrae-Infrastructure 150 150 150 150 150 750NKN (Ongoing)NKN- Phase II & R & D

1000200

800200

800200

700300

700300

40001200

Internet Governance 50 50 50 50 50 250Digital Library initiatives 10 15 15 15 15 70ERNET 10 10 10 10 10 50

NIXI (for setting up of NIR) 5 - - - - 5

Sub-total 6325Total (2012 – 17) 14215

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4. Budget Estimates Head wise:(Rs. in Crores)

Ongoing Schemes2012-13 2013-14 2014-15 2015-16 2016-17 Total

1.Head: ManpowerDevelopmentHRD 150 150 200 200 200 900

e-Learning Technologies 50 50 50 50 50 250e-Infrastructure 150 150 150 150 150 750

Internet Governance 50 50 50 50 50 250

Digital Library initiatives 10 15 15 15 15 70

Sub-total (Manpower Development) 2220

2. Head: TDILLanguage Technology,Technology Developmentin Indian Languages

65 75 80 90 90 400

3. NKN (Head: NKN) 1000 800 800 700 700 4000

4. DOEACC (Head:DOEACC)

40 40 50 50 50 230

5. ERNET (Head: ERNETIndia)

10 10 10 10 10 50

Sub Total (TDIL+NKN+DOEACC+ERNET) 4680

Total Ongoing Schemes 6900

New Schemes

National Skill DevelopmentInitiative in IT

1500 1500 1000 1000 1000 6000

IT Mass Literacy 30 20 20 20 20 110

NKN- Phase II & R & D 200 200 200 300 300 1200

NIXI (for setting up of NIR) 5 - - - - 5

Total New Schemes 7315

Grand Total 14215

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e-Security

1.0 Background

Over the years, Information Technology has transformed the global economyand connected people and markets in ways never imagined. With the InformationTechnology gaining the centre stage, nations across the world are experimenting withinnovative ideas for economic development and inclusive growth. It has also creatednew vulnerabilities and opportunities for disruption. The cyber security threats emanatefrom a wide variety of sources and manifest themselves in disruptive activities thattarget individuals, businesses, national infrastructure and Governments alike. Theireffects carry significant risk for public safety, security of nation and the stability of theglobally linked economy as a whole. The origin of a disruption, the identity of theperpetrator or the motivation for it can be difficult to ascertain and the act can take placefrom virtually anywhere. These attributes facilitate the use of Information Technologyfor disruptive activities. As such, cyber security threats pose one of the most seriouseconomic and national security challenges.

2.0 XI Plan – Objectives, targets and achievements

2.1 Objectives and TargetsThe following primary objectives had been identified in XI Plan in cyber security:

Securing cyber space Preventing cyber attacks Reducing national vulnerability to cyber attacks. Minimizing damage and recovery time from cyber attacks Capacity building

As such, the cyber security initiatives in the XI plan period had the following focus: Enabling Legal Framework Security Policy, Compliance and Assurance Security R&D Security Incident – Early Warning and Response

– National Cyber Alert System– CERT-In and Sectoral CERTs– Information Exchange with International CERTs

Security training– Skill & Competence development– Domain Specific training – Cyber Forensics, Network & System

Security Administration Collaboration

– International– National

2.2 Achievements during XI Plan

A number of activities have been performed in each of the above focus areas.Major achievements are summarised below:

2.2.1 Enabling legal framework

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Information Technology (Amendment) Act, 2008 has been enacted and rules ofimportant sections have been notified. The provisions of the Information TechnologyAct deal with evidentiary value of electronic transactions, digital signatures, cybercrimes, cyber security and data protection.

2.2.2 Security Policy, Compliance and AssuranceComputer Security Guidelines have been circulated to all Departments and

Ministries. Cyber security drills are being conducted to assess preparedness of criticalorganisations. 54 Auditors have been empanelled for audit of IT infrastructure fromcyber security point of view.

Crisis Management Plan for countering cyber attacks and cyber terrorism hasbeen released and is being updated annually. Enabling workshops are being conductedin different sectors and states/UTs. Common Criteria (CC) product testing facility hasbeen set up which caters up to level 4 CC certification.

Draft `National Cyber Security Policy’ has been prepared and posted on DITwebsite for public comments.

Controller of Certifying Authority (CCA) has licensed 7 Certifying Authorities(CA). More than 22 lakhs Digital Signature Certificates have been issued. MajorApplications using Digital Signatures include e-Procurement for Central and StateGovt., e-Tendering, e-Filing of returns (MCA-21), Income Tax filing for corporate andindividuals, Inter bank transactions (RTGS and SFMS), E-Filling of Patent Applicationand NSDL Applications.

2.2.3 Security Incident – Early Warning and Response

A Computer Emergency Response Team –India (CERT-In) has been set up andis operational as the national agency for cyber incidents. It operates a 24x7 IncidentResponse Help Desk to help users in responding to cyber security incidents. It has beenissuing regular alerts on cyber security threats and advises countermeasures to preventattacks. CERT-In has established linkages with international CERTs and securityagencies to facilitate exchange of information on latest cyber security threats andinternational best practices. CERT-In, in collaboration with CII, NASSCOM andMicrosoft, has created a portal “secureyourpc.in” to educate consumers on cybersecurity issues.

2.2.4 Cyber Security R&D

A number of R&D projects have been supported at premier academic and R&Dinstitutions in the identified Thrust Areas, viz., (a) Cryptography and cryptanalysis, (b)Steganography, (c) Network & systems security assurance, (d) Network Monitoring,(e) Cyber Forensics and (f) Capacity Development in the area of cyber security. A hostof Cyber Forensic tools have been developed in the country.

2.2.5 Capacity Development/Training

Training Centres have been set up at CBI, Ghaziabad and Kerala Police tofacilitate advanced training in cyber crime investigation. Computer forensic labs andtraining facilities are being set up in J&K state, North Eastern states. Forensic Centreshave been set up with the help of NASSCOM at Mumbai, Bangalore, Bhopal and

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Kolkata. Virtual training environment based training modules have been prepared.Training has been conducted for Orissa, Delhi, Andhra Pradesh and Karnataka JudicialOfficers on Cyber Crime Investigation. 94 training programmes have been conductedby CERT-In on specialized Cyber Security topics – in which 3392 people have beentrained.

2.2.6 CollaborationAs part of National level Cooperation, Cyber security awareness programmes

were organised in cooperation with industry associations – CII, NASSCOM-DSCI.MoUs were signed with product and security vendors for vulnerability remediation.

Several activities were undertaken under International Cooperation. Internationallevel Cyber security drills were held with Asia –Pacific CERTs. Specific cyber securitycooperation agreements were signed with US, Japan and South Korea. India participatedin cyber security drills of US (Cyber Storm III). CERT-In experts helped inestablishment of CERT-Mauritius. India is participating in Internet traffic scanning inAsia-pacific region. India is a member of UN Committee of Group of Experts as well asin the Council of Security Cooperation in Asia-Pacific (CSCAP) for enhancingcooperation in the area of Cyber Security.

3.0 Current status of Cyber Security preparednessThe initiatives taken by the Government so far have focused on the issues such

as cyber security threat perceptions, threats to critical information infrastructure andnational Security, protection of critical information infrastructure, adoption of relevantsecurity technologies, enabling legal processes, mechanisms for security complianceand enforcement, Information Security awareness, training and research. These actionshave significantly contributed to the creation of a platform that is capable of supportingand sustaining the efforts to securing the cyber space. However, due to the dynamicnature of cyber threat scenario, these actions need to be continued, refined andstrengthened from time to time.

Salient features of the results of actions and the level of cyber security preparednessinclude:

(a) Information Technology (Amendment) Act 2008 has been enacted to cater to theneeds of National Cyber Security by addressing host of issues such astechnology related cyber crimes, critical information infrastructure protection,data security and privacy protection.

(b) Indian Computer Emergency Response Team (CERT-In) has been operational asa national agency for cyber security incident response. It has establishedoperational linkages with overseas CERTs, and cyber security professionalorganisations to enhance its ability to respond to the cyber security incidents andtake steps to prevent recurrence of the same.

(c) PKI infrastructure, set up to support implementation of Information TechnologyAct and promote use of Digital Signatures, has enabled the growth andapplication of digital signature certificates in a number of areas.

(d) National Crisis Management Plan for countering cyber attacks and cyberterrorism has been prepared and is being updated annually. Central Govt.Ministries/Departments and States and UTs as well as organisations in critical

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sectors are making efforts to prepare and implement their own sectoral CrisisManagement Plans.

(e) To enable comprehensive cyber security policy compliance, the Govt. hasmandated implementation of security policy within Govt. in accordance with theInformation Security Management System (ISMS) Standard ISO 27001. Inaddition, Computer security guidelines have been issued for compliance withinGovt. A Common Criteria based IT product security testing facility has been setup at Kolkata, which can test IT products up to EAL4.

(f) A mechanism for audit and assessment of security posture of Govt. and criticalsector organisations has been put in place. Security Auditors have beenempanelled for conducting security audits including vulnerability assessment,penetration testing of computer systems and networks of various organizationsof the government, critical infrastructure organizations and those in other sectorsof the Indian economy. Cyber security drills are being conducted regularly toassess the preparedness of organisations to resist and mitigate cyber attacks.

(g) R&D activities have been supported through premier Academic and R&DInstitutions in the country facilitating creation of R&D infrastructure,development skills and solution oriented development.

(h) Nation-wide Information Security Education and Awareness Program has beenin progress to create necessary cyber security awareness through formal andinformal programmes. Cyber security training facilities have been set up toprovide training to law enforcement agencies and facilitating cyber crimeinvestigation.

4.0 Cyber security – Challenges

The Cyber space is borderless and actions in the cyber space can be anonymous.These features are being exploited by adversaries for perpetration of crime in the cyberspace. The scale and sophistication of the crimes committed in the cyber space iscontinually increasing thereby affecting the citizens, business and Government. As thequantity and value of electronic information has increased so too have the businessmodels and efforts of criminals and other adversaries who have embraced the cyberspace as a more convenient and profitable way of carrying out their activitiesanonymously.

Today adversaries are producing, selling and distributing malicious code withease, maximizing their gains and exploiting the fact that attribution is a challenge.Malware is getting stealthier, more targeted, multi-faceted and extremely difficult toanalyse and defeat even by the experts in the security field. Organised crime is fastgrowing and targeting the exponential growth of on line identities and financialtransactions. There is increasing evidence of espionage, targeted attacks and lack oftraceability in the cyber world as state and non-state actors are compromising, stealing,changing or destroying information and therefore potentially causing risk to nationalsecurity, economic growth, public safety and competitiveness.

5.0 Cyber Security- Strategic Approach for XII PlanCyber Security requirements are quite dynamic that change with the threat

environment. Threat landscape needs to be updated regularly to prevent emergingattacks. Collaboration among various agencies is needed to share information regarding

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emerging threats and vulnerabilities, which would help in effective protection andprevention of cyber attacks.

It is necessary to take a holistic approach to secure Indian Cyber Space. Whilethe cyber security initiatives of the XI plan period will be continued and strengthened,new initiatives will be put in place consistent with emerging threats and evolvingtechnology scenario. The following Cyber Security strategies are proposed to beadopted during the XII Five Year Plan :

Enhancing the understanding with respect to factors such as dynamicallychanging threat landscape, technical complexity of cyber space and availabilityof skilled resources in the area of cyber security.

Focus on proactive and collaborative actions in Public-Private Partnershipaimed at security incidents prevention, prediction, response and recovery actionsand security assurance.

Enhancing awareness and upgrading the skills, capabilities and infrastructure toprotect the country’s cyber space, to provide rapid response to cyber attacks, tominimize damage and recovery time and to reduce national vulnerabilities tocyber attacks.

Improving interaction and engagement with various key stakeholders such asGovt. and critical sector organizations, sectoral CERTs, International CERTs,service providers including ISPs, product and security vendors, security and lawenforcement agencies, academia, media, NGOs and cyber user community.

Carrying out periodic cyber security mock drills to assess the preparedness ofcritical sector organizations to resist cyber attacks and improve the securityposture.

Supporting and facilitating basic research, technology demonstration, proof ofconcept and test bed projects in thrust areas of cyber security through sponsoredprojects at recognized R&D institutions.

6.0 Key Priorities and Target Deliverables for XII Plan

The cyber security initiatives will be implemented with the following six focus areasduring the XII plan period :

Enabling Legal Framework,(a) Security Policy, Compliance and Assurance,(b) Security R&D(c) Security Incident – Early Warning and Response,(d) Security awareness, skill development and training(e) Collaboration

The proposed key priorities for implementation and target deliverables inrespect of each of the focus areas are given below:

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6.1 Enabling Legal Framework

Key Priority

The key priority of this initiative will be upgradation /development of arobust and dynamic legal framework to enable cyber security and address newercyber crimes.

Target deliverables

It is important to undertake research projects on the theme of cyber laws andrelated components like, e-commerce, encryption, IPR issues, privacy etc. Further, itis necessary that a data bank/repository of legal cases be created having details ofcyber law cases decided in India. Such research projects would help in creatingbetter legal framework and understanding about the issues related to cyber lawsincluding cyber security.

There is a need to devise policy and procedure for obtaining authentic datastored and hosted by Indian companies on servers abroad for lawful access purpose. Anencryption/decryption framework is also required keeping in view the concerns of bothindustry and Law Enforcement Agencies.

As the digital world is much more complex, there is a need to train judiciary,law enforcement agencies and legal practitioners about the cyber crimes, collectionof digital evidences and cyber forensics.

With the ever-growing reliance on technology and spurt in newer forms ofcyber crimes, it becomes imperative to introduce courses on cyber law.

In line with the requirements, the target deliverables include: Suitable amendments to existing legal framework Strengthening enforcement mechanism Capacity building for judiciary, law enforcement agencies, legal practitioners

and students

6.2 Security Policy, Compliance and Assurance

Key priorityCyber security policy compliance and assurance initiative needs to focus on

creating an enabling mechanism for achieving conformance with provisions of ITAct, statutes and other policy initiatives of the Government and regulatory bodies.

Target deliverablesWith the growing use of IT, there is an increasing need to generate and sustain

users confidence in the IT systems and transactions. Accordingly, simultaneous effortsare needed on the part of Govt., business and industry in terms of enabling frameworks,mechanisms for compliance and assurance. On its part, the Government is makingefforts to identify the core services that need to be protected from cyber attacks and isseeking to work with organizations responsible for these systems so that their servicesare secured in a way that is proportional to the threat perception. Industry and criticalinfrastructure organizations have started to focus on their ability to gain users

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confidence through improved software development, security engineering practices andthe adoption of strengthened security models and best practices.

Most often, users of IT products depend on inputs from others to know about thesecurity of the product. There is a need to have a mechanism to certify IT products toprovide assurance from security point of view. This in turn requires creation ofstandards for conformance, establishment of acceptable evaluation method and processto certify products and at the same time ensure that privacy is maintained as per theprevailing regulations. This is required both for proprietary and open source products.

With India emerging as a leading outsourcing partner, there is a need to addresscompliance requirements to international standards and best practices on security andprivacy. As such, there is a requirement for a comprehensive assurance framework thatenables compliance within the country and provides assurance on compliance to outsourcing organizations and rest of the world.The target deliverables include:

Annual cyber security studies and surveys related to compliance andassurance

Enhancement of crisis management plan and emergency preparedness Enhancement of security audit, assessment and certification infrastructure

(Third party certification, Self-certification, empanelment and ratings ofauditors, technical security testing, cyber security drills),

Mechanism for generating a national cyber security index leading to nationalrisk management framework

Enhancement of IT product technical security assurance mechanism(Common Criteria security test/evaluation & Crypto Module ValidationProgram )

6.3 Cyber Security Research & Development

Key priorityThe key priority of this initiative will be to carry out innovative R&D with

focus on basic research, technology development and demonstration, setting up test-beds, transition, diffusion and commercialisation leading to widespread deployment.

Target deliverablesIndigenous R&D efforts are essential for facilitating the creation of a sound

S&T environment. Resources like skilled manpower and infrastructure createdthrough pre-competitive public funded projects provide much needed inputs toentrepreneurs to be globally competitive through further R&D. Indigenous R&Defforts will contribute to creation of knowledge and expertise to face new andemerging security challenges and to produce cost-effective, tailor-made indigenoussecurity solutions. Indigenous efforts are also required to develop products whichare not available from outside sources due to export restrictions.

Viable industry-academic/R&D interactions are vital for implementation ofthe activities. Joint R&D programme in specific identified projects in Public PrivatePartnership mode will need to be explored. These joint projects are expected tospeed up the development efforts and make available outcome from such jointprojects for commercial exploitation and deployment in relatively short period oftime. This joint R&D programme also will help in harnessing the technical skillsand capabilities of institutions and organisations in public and private sector.

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The target deliverables include: Setting up of Centres of excellence in Cryptography, Malware Research,

Mobile Security and Cyber Forensics Creation of Centre for technology transfer and facilitating prototype to

production of products Programs to focus on cryptography, cryptanalysis, algorithm design/

development/ hardware realisation Attack detection, protection, response, recovery and prevention systems Security solutions for cloud environment Mobile security solutions Embedded systems security particularly addressing security requirements in

SCADA systems Cyber security assurance framework for Govt sector

6.4 Security Incident - Early Warning and Response

Key priorityThe key priority is strengthening National Cyber Alert System for rapid

identification and response to security incidents and information exchange to all desiredelements that are critical for cyber security, to reduce the risk of cyber threat andresultant effects.

Target deliverablesInformation systems must be able to operate while under attack and also have

the resilience to restore full operations in their wake. Towards this end, rapididentification, information exchange, and remediation are necessary to contain asecurity incident and mitigate the damage caused by malicious cyberspace activity.With the active involvement of critical infrastructure organizations, public and privateinstitutions, a National Cyber Alert System can perform requisite analysis, conductwatch and warning activities, enable information exchange, and facilitate restorationefforts.

CERT-In is operational and is catering to the security needs of Indian Cybercommunity. In line with the emerging requirements, there is a need to further augmentthe facilities at CERT-In in terms of manpower, communication systems, tools, etc. forvulnerability prediction, analysis and mitigation, cyber forensics analysis, cyber spacemonitoring/ interception and critical information infrastructure security. For an effectiveNational Cyber Security Alert System, there is a need to create/upgrade sectoral CERTsto cater to the very specific domain needs of different sectors.Strengthening of Government Cyber Security infrastructure

The Government agencies need to set an example in the development and useof secure computer and communication networks. There is a need for priority actionto strengthen the security of the Government IT infrastructure to facilitate faster andefficient information flow between various user agencies within the Government aswell as effective interface with users outside the Government. In order to meet theupcoming challenges in securing the Government IT infrastructure, adequateattention should be paid to the use of appropriate technology and applications anddevelopment of suitable information security policies and guidelines.

The target deliverables include: Establishment of Threat, Vulnerability and Malware Research Centre

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Expansion of CERT-In Operations Building sensor/honeypot networks at key ICT installations Creation of a central knowledge repository Incident and response mechanism at national gateways Security Information Sharing and Analysis Centres (ISACs)

Cyber Security Operational Centre (CSOC) which will have co-ordinationrole with necessary authority and accountability in respect of cyber securitydefense measures

Establishment of Regional level Cyber Security Help Desks Establishment of Botnet Cleaning Centres in the Govt., critical infrastructure

andpublic sector organizations.

6.5 Security Awareness, Skill Development and Training

Key priorityThe key priority is to establish cyber security capacity building and training

mechanisms for developing a strong and dynamic cyber security skilled work forceand a cyber vigilant society.

Target deliverablesBuilding appropriate human resources is vital to address upcoming security

challenges and threats. There is a need to have trained manpower at different levelsboth in the Government and private sector. It would also be important to createinterest among good IT students by creating opportunities for them. Also those whoare already on the job need to be retrained and their skills upgraded. There is a needto include cyber security curriculum both at school and college levels.

Mass awareness campaign is important to create cyber security awarenessamong citizens. The promotion and publicity campaign could include (a) Seminars,exhibitions, contests etc., (b) Radio and TV programmes, (c) Videos on specifictopics, (d) Web casts, Podcasts, (e) Leaflets and Posters and (f) Suggestion andAward Schemes.

The local law enforcement agencies at the operational level as well as centrallaw enforcement agencies are required to be equipped to deal with cyber crimes.There is a need for creating awareness and impart training to law enforcementagencies and judiciary regarding IT Act provisions, cyber security aspects, cybercrime investigation procedures and cyber forensics. A separate Centre of Excellencemay need to be created for this purpose.

Indigenous certification programmes need to be evolved to enable affordablecertification and generating certified cyber security manpower.

The target deliverables include:

Launch of Security Education, Skill Building and Awareness Programme Sustained awareness campaign through electronic media Establishment of Cyber Security Training Labs/facilities across the country Establishment of examination, accreditation & certification infrastructure

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Establishment of Cyber Security Concept Labs, Digital Cyber ForensicTraining Labs, Cyber Security Auditing of Assurance Labs,SCADA/embedded security labs

Establishment of Centre of Excellence for capacity building for LawEnforcement Agencies and Judiciary

6.6 Collaboration

Key priority

The key priority is to promote shared understanding and leverage relationshipsfor furthering the cause of security of cyber space.

Target Deliverables

The cyber threat sources and attacks span across countries. As such there is aneed to enhance global cooperation among security agencies, CERTs and LawEnforcement agencies of various countries to effectively mitigate cyber threats.Accordingly, it is vital to have well-developed Cyber Security collaborative frameworkestablished through different government agencies in broad collaboration with privatesector, partners and stakeholders in academia, national and international agencies. Inthis context, DIT should coordinate and be a focal point for all cyber security mattersincluding critical sector in the civilian sector for effective collaboration and interfacefor cyber security aspects.Target deliverables include :

Security cooperation arrangements with overseas CERTs and industry Proactive engagement at UN and Asia-Pacific level Enhanced information sharing mechanism within the country Focused and sustained engagement program for law enforcement agencies and

judiciary Creation of a tiered structure for information sharing Establishment of a think tank for cyber security policy inputs, discussion and

deliberations

7.0 Implementation Plan

The activities to be carried out during the course of implementation of XII planunder each of the six focus areas are indicated in the following paragraphs.

7.1 Enabling Legal Framework

Studies will need to be carried out to understand the impact of new technology,crime trends and current policies on the business environment, public safety, nationalsecurity and global competitiveness. Studies are also necessary on international cyberlaws to harmonise Indian cyber laws with laws prevailing internationally. Based on thestudies carried out, amendments required in the existing legal framework will have to beidentified and appropriate means devised to strengthen the enforcement mechanism.Policies and procedures will have to be framed based on appropriate public inputs anddebates. An enabling legal framework will require:

Policy and framework to establish data sovereignty, ownership and control

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Legal framework for encryption in the backdrop of cyber security, privacy andnational security

Framework for lawful access in India with defined checks and balances andredressal mechanism

Legal framework for usage of surveillance technologies for public safety Framework to protect privacy of online users Enabling mechanism / framework for cyber security assistance to law

enforcement agencies (to take care of costs of additional equipment needed forlawful access).

Activities to create awareness about the role of CERT-In, Adjudicating Officers& Cyber Appellate Tribunal as an Authority under the Information Technology Act,2000 will need to be undertaken. Efforts will have to be made to set standards forforensic tools and procedures in India.

7.2 Security Policy, Compliance and Assurance

The activities needed to be pursued include Development of crypto module validation program and operationalisation, Enhancement of technical capability of Common Criteria Test lab in emerging

technology, Implementation of IT product technical security assurance program and

operationalisation, Updation of crisis management plan, Enablement of development and implementation of sectoral crisis management

plans, Carrying out periodic cyber security mock drills to assess the preparedness of

critical sector organizations to resist cyber attacks, Establishing institutional platform for security professionals in the country, Publishing guidelines and mandate for secure development and deployment of

ICT systems, Creating a mechanism for interface between the government and public on

policy compliance and assurance like interactive portal, website, etc., and Establishing a mechanism for incentivising security compliance and assurance.

7.3 Cyber Security R&D

The R&D Programs undertaken have to address all aspects of development:Study of the security properties of existing major systems and components,development of prototypes in selected application and infrastructure domains andsimulation environments, development of deployable systems, testing of the systemsdeveloped and deployment and maintenance of trustworthy systems throughout the lifecycle.

An indicative list of areas of R&D is given below: Indigenous cryptographic algorithms, protocols and systems for securing data at

storage and transmission Quantum Cryptography Research Secure software engineering and development Trusted/trustworthy systems development with end-to-end security Tamper resistant and self healing systems Static and dynamic roots of trust for secure transactions

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Device security System-on-chip security Predicting future resilience of systems Solutions for ensuring trust of electronic transactions Video analytics Analysis and certification of commercial IT Systems Software assurance, code testing and analysis Threat Management systems Active devices with built-in capability for event based monitoring Network penetration and vulnerability assessment tools Interception of encrypted communication Development of national security index leading to national risk management

framework Development of compliance and self-assessment tools, validation and

implementation.

7.4 Security Incident - Early Warning and Response

The activities needed to be pursued under this initiative include Augmenting operating capabilities of CERT-In to address rising scale and scope

of national security incident response management, Adopting and deploying state-of-art tools and techniques, Creating a structured knowledge repository with continuous streaming of

information, Strengthening partnership and cooperation with security technology industry,

international CERTs and security forums, Acquisition of intelligence about vulnerabilities, threats, and security risks

collated from a comprehensive list of sources, Building of framework for engaging external expertise, Establishing a mechanism for technical security posture measurement, Establishing Security knowledge management delivery mechanism, and Establishing a collaboration platform for engaging with security community.

7.5 Security Awareness, Skill Development and Training

The activities needed to be undertaken under this initiative include Building capacity through various training delivery modes and certifications in

network security, forensics, audit, security management and application security, Mandating Certification for security roles including CISO/CSO and those

involved with critical information infrastructure, Enhancing Cyber Security Training and Awareness Programmes in different

States across the country, Conducting Security Training and courses in Public Private Partnership mode, Conducting, supporting and enabling Cyber Security Workshops/Seminars and

Certifications, Conducting security awareness programmes at schools level with suitable cyber

security curriculum, Introducing specific and specialized courses in University, Engineering colleges

and management institutions, Promoting Secure Coding Practices, Creating and updating role relevant standardised courseware contents,

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Establishing Centre of Excellence for capacity development of judiciary and lawenforcement agencies, and

Development of courseware on cyber law and cybercrime investigation andimplementation.

7.6 Collaboration

The activities necessary under this initiative will include Developing bilateral and multi-lateral relationships in the area of cyber security

with other countries, Creating models for collaborations and engagement with all relevant

stakeholders, Enabling private-to-private and private-to-government collaboration and

cooperation in the area of cyber security for sharing information on practices andbreaches,

Actively contributing to the development of international standards, Collaboratively conducting cyber drills and actively participating in

international exercises including promoting global priority group, Engaging in defining controls for managing supply chain risks, Collaborating for bot-net takedowns and increasing consumer trust in ICT, and Seeking international legal cooperation by entering into bilateral/multilateral

Protocols or Conventions on Cyber Crimes and Cyber Security.

8.0 Funds requirement during XII Plan

A tentative assessment of budget requirement for each focus area in cybersecurity is as follows:Enabling Legal Framework : Rs. 50 croresSecurity Policy, Compliance and Assurance : Rs. 125 croresSecurity R&D : Rs. 300 croresSecurity Incident – Early Warning and Response : Rs. 500 croresSecurity awareness, skill development and training : Rs. 475 croresCollaboration : Rs. 50 croresThus the projected outlay/ budgetary support needed to carry out the cyber securityrelated activities during XII Plan is Rs. 1500 crores.

9.0 Institutional arrangement and role of DIT

DIT will act as a nodal agency to implement the cyber security activities planned forthe XII Plan. It will provide funding support to the programs for execution by partneragencies. Public private partnership (PPP) arrangement will need to be explored in therelevant areas like joint funding of select R&D projects, organizing awareness andtraining programs jointly with industry associations, state governments etc.

10.0 Summary of Recommendations

The primary objectives identified in the XI Plan for securing country’s cyberspace, viz. preventing cyber attacks, reducing national vulnerability to cyber attacks,reducing national vulnerability to cyber attacks, and minimizing damage and recoverytime from cyber attacks, continue to be valid for the XII plan period. Accordingly, thecyber security focus areas in the XII plan period will be (a) Enabling Legal Framework,(b) Security Policy, Compliance and Assurance, (c) Security R&D, (d) Security Incident

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– Early Warning and Response, (e) Security awareness, skill development and training,and (f) Collaboration.

New initiatives recommended to be taken up in the XII Plan include: Seamless integration of agencies involved in the area of cyber security Creating Centres of Excellence for research in identified areas of advanced

security. Setting up security threats, vulnerability and malware analysis facility. Setting up a mechanism to certify IT products to provide security assurance

(including creation of standards, establishment of evaluation methods andprocesses and facility to certify products).

Establishing Security Information Sharing and Analysis Centres (ISACs) acrossthe regions and sectors for government-to-private and private-to-privateinformation sharing.

Establishing Sectoral CERTs. Strengthening infrastructure and activities at CERT-In. Strengthening National Cyber Alert System for rapid identification and response

to security incidents and information exchange. Setting up Cyber Security Help Desks at regional levels for general users to

provide first level of guidance and support. Setting up Botnet Cleaning Centres in the Government, Public, and Critical

Infrastructure Sectors. Establishing Cyber Security Training Labs/facilities across the country in

collaboration with State Governments and Private Sector

Some of the major targets/deliverables in the identified focus areas of the XII Plan areas follows:

Enabling Legal Framework - Setting up of think tanks in Public-Private modeto identify gaps in the existing policy and frameworks and take action to addressthem. This includes addressing privacy concerns of on-line users.

Security Policy, Compliance and Assurance- Enhancement of IT productsecurity assurance mechanism (Common Criteria security test/evaluation, ISO15408 & Crypto Module Validation Program), establishing a mechanism fornational cyber security index leading to national risk management framework.

Security R&D - Creation of Centres of Excellence in identified areas ofadvanced Cyber Security R&D and Centre for Technology Transfer to facilitatetransition of R&D prototypes to production, supporting R&D projects in thrustareas.

Security Incident - Early Warning and Response- Comprehensive threatassessment and attack mitigation by means of net traffic analysis anddeployment of honey pots, development of vulnerability database.

Security awareness, skill development and training - Launching formalSecurity Education, Skill Building and Awareness Programmes.

Collaboration - Establishing a collaborative platform/ think-tank for cybersecurity policy inputs, discussion and deliberations, operationalisation ofsecurity cooperation arrangements with overseas CERTs and industry, andseeking legal cooperation of international agencies on cyber crimes and cybersecurity.

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e-Industry (Electronics Hardware)

1. Background

The degree of Information, Communication Technology and Electronics (ICTE)integration has come to be regarded as the index of development, competitiveness andefficient delivery of services in any economy. The competitiveness of various industriesis fashioned by their ability to integrate ICTE in their business processes. World over,ICTE is recognized as a meta-resource.

India has become a global power house in software and software services sector.However, it lags behind in electronics systems design and manufacturing (ESDM)capabilities. The objective should be to transform India into a global destination inelectronics hardware manufacturing, to meet the fast-increasing domestic demand andglobal demand. However, there are multiple challenges such as inadequateinfrastructure, tax structure, supply chain and logistics, inflexible labor laws, limitedR&D focus, funding, limited value addition focus and exports. Moreover, thecompetition in the sector is from China which has achieved high economies of scale andhas highly subsidized operating environment which is largely opaque. Additionally, thesector has great velocity in terms of business and technology obsolescence, requiringreal-time decision making and continuously evolving policies, which the normaldecision-making processes cannot address. Government attaches high priority to thegrowth of electronics hardware manufacturing sector and has taken a number of stepson an on-going basis for promotion of this industry in the country. However, the growthof Indian electronics hardware industry has not been consistent with the marketpotential.

Increasing Supply-Demand Gap for Electronic Hardware: Electronics, reported atUSD 1.75 Trillion is the largest and fastest growing manufacturing industry in theworld. It is expected to reach USD 2.4 Trillion by 2020. The demand in the Indianmarket was USD 45 Billion in 2008-09 and is expected to reach USD 400 Billion by2020. The growth of domestic production at a CAGR of 22% is expected to be drivenby surge in income levels, the aspiration value of electronics goods, the demand fromresurgent corporate sector and the government’s focus on e-governance. The domesticproduction in 2008-09 was about USD 20 Billion. However, the gross ManufacturingValue Addition was very low, anecdotally between 5 to 10 percent. This implies thatout of the demand of USD 45 Billion, between USD 1-2 Billion was value added in thecountry and rest was imported, making it a close second to the country’s oil import.Unless the situation is corrected, it may be that by 2020, the electronics import mayexceed oil imports. This fact goes unnoticed because electronics, as a “meta resource”forms a significant part of all machines and equipment imported, which are classified intheir final sectoral forms, for example, automobiles, aviation, health equipment, mediaand broadcasting, defense armaments, etc. Indian electronics hardware productionconstitutes around 1.31% of the global production. On the other hand, China’s share ofglobal electronic equipment production has increased from 17% in 2004 to 33% in2009. At the current rate of growth, the domestic production can cater to a demand ofUSD 104 Billion in 2020 and the remaining would have to be met by imports. Thisaggregates to a demand supply gap of nearly USD 1200 Billion by 2020.

Drivers of Demand for Electronics Hardware: The main growth drivers ofelectronics hardware demand in India are: (i) growth in per capita income and corporate

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spend on electronics; (ii) government focus on infrastructure; (iii) increasing spend onIT equipment; (iv) growing penetration of Internet including Broadband and Mobilephones and (v) need for innovative products at low cost. Most of the domestic growthby 2020 is likely to be achieved from the main verticals viz mobiles phones (USD 30Billion), PCs (USD 55 Billion), Color TVs (USD 20 Billion), Controls andInstrumentation (USD 10 Billion), Telecom Equipment (USD 10 Billion), MedicalElectronics (USD 4 Billion), Design Industry (USD 80 Billion), Exports (USD 80Billion) and Components (USD 115 Billion). However, with the convergence oftechnologies variety of smart devices supporting multiple applications are expected tomodulate the demand in the future.For sustained growth of GDP and productive employment to younger generation, fastergrowth of manufacturing sector is a National imperative. The share of manufacturingsector is targeted to increase to 25% of the National GDP by 2025. Over the nextdecade, the manufacturing sector is expected to be the main plank for creating largeemployment opportunities for the engineers, skilled, semiskilled and unskilled persons.India has the potential to develop and manufacture electronics hardware for the globalmarkets and gain higher global share besides meeting the country’s future requirementin the converging areas of information, communication and entertainment. There is abig opportunity for stepping up production of Electronics hardware in the country.Moreover, to keep up the growth rate of software and services sector, it is important tohave a strong electronics hardware sector, which is lagging behind.

2. Objective, Targets and Strategies

Vision

The vision is to establish India as a leading global destination for the manufacturing ofelectronics system design and manufacturing.

Objective

The objective is to achieve domestic production of about USD 122 Billion by 2017 bycreating a industry friendly policy framework and ecosystem for the ESDM sector.

The aim is to create a level playing field and an enabling environment, both at theCentral as well as at the State level for the industry to take up electronics system designand manufacturing. The support would be provided across the value chain to begin with,but will be tapered off for those sectors and products which achieve globalcompetitiveness.

Targets and Strategies

To achieve the objective, the targets and strategies are as under:

(i) To create an enabling policy framework and providing suitable financialincentives to create a level playing field for domestic industry so as to achievedomestic production of about USD 122 Billion by 2017 in electronics systemdesign and manufacturing by 2017. This is expected to generate exports of aboutUSD 20 Billion, direct employment of about 3.5 Million and indirectemployment of 6.5 Million

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(ii) To progressively increase the domestic production of the requirements ofstrategic sectors, namely, defense, atomic energy and space through domesticproduction, through appropriate combination of public sector and private sector.

(iii) To ramp up the manufacturing value addition in electronics system design andmanufacturing.

(iv) To set up at least two semiconductor wafer manufacturing facilities in India.

(v) To set up an Electronic Development Fund to support the creation andsustaining a vibrant research and development eco-system, involving both theprivate sector and public sector to enable the electronics system and designindustry to remain at the frontier of technological and business processinnovations.

(vi) To set up electronics manufacturing clusters with state-of-the-art supportinfrastructure to achieve the target of production and value-addition inelectronics system design and manufacturing.

(vii) To provide preferential market access to domestic industry in the electronicssystem design and manufacturing sector.

(viii) To mandate suitable standards for electronic system design and manufacturing,to safeguard the consumers and industry against sub-standard items.

(ix) To develop human resource required for various verticals of electronics systemdesign and manufacturing.

(x) To jointly work with industry to create a global “Brand India” for electronicssystem design and manufacturing.

(xi) To promote Green Electronics and e-Waste management for ensuringsustainable growth and development of the electronics industry in India.

(xii) To promote Semiconductor chip design industry.

(xiii) To promote Electronics Components industry.

(xiv) To promote Vendor Development and Electronics Support Services like repairand maintenance to support the growing demands of electronics products,particularly with fast changing technologies/ features.

(xv) To carry out effective negotiations in World Trade Organisation (WTO) formarket access to Indian industry in foreign countries and for removal of barriersto trade in its forums of Non-Agricultural Market Access (NAMA), GATT,TRIPS, TRIMS etc.

3. Challenges faced by Indian Electronics HardwareManufacturing

Some of the challenges faced by the ESDM sector are:

i. The China Factor: India’s biggest competition in the sector is from Chinawhich has achieved high economies of scale and has highly subsidized operatingenvironment which is largely opaque.

ii. ITA and the WTO: On the other hand, electronics was the first sector to beopened up and which accepted zero duty regime for large number of products.As a signatory to the Information Technology Agreement-1 (ITA-1) of theWorld Trade Organization (WTO), India has implemented zero duty regime on

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217 product lines. Under the Free Trade Agreements (FTAs) and PreferentialTrade Agreements (PTAs) with various countries, the import of electronicshardware from these countries is allowed at a duty which is lower than thenormal duty rate.

iii. Disability Costs in local Manufacturing: The three elements of operatingenvironment which pose significant challenges to Indian manufacturers are:infrastructure, power and finance. Infrastructure challenges arise from poorsupply chain logistics and inadequate ready availability of land. The financecosts in India are typically 5 to 6 points above international rates. Power supplyis, in several parts, inadequate, unreliable and costly. High transaction costs dueto stringent rules and regulations, complex administrative processes also add onto the disability cost to manufacturers. An analysis by the Federation of IndianExport Organizations (FIEO) reveals cost disabilities, including the transactioncosts borne by Indian exporters vary and range from 19-22% as against 2 to 3%in developed countries.

iv. Diversity and Velocity of technology change: Electronics is pervasive andspans all sectors. Therefore, the development of the sector involves domainknowledge of each of the sectors which it serves. The half-life of technologies inthe sector has been continuously reducing. Currently it is estimated to be evenless than six months in certain verticals Convergence between differenttechnologies, devices, software and hardware are also driving technologychanges. Mergers, acquisitions, technological choices are everyday phenomena.

4. SWOT Analysis - ESDM

Strengths Weaknesses

Sustained growth of 15% even duringeconomic slowdown

Domestic demand to grow exponentially Huge Indian consumer market with rising

middle class and young population withdisposable income in their hands

Large pool of manpower Significant presence of MNCs Potential to become one of the factories

of world Conducive Government policies

Zero duty due to ITA-1 Free Trade Agreements (FTAs)

and Preferential TradeAgreements (PTAs)

Disability costs - Cost of power,finance, logistics, fragmentedsupply chain)

Weak componentsmanufacturing base, especiallysemiconductors

Lack of targeted & proactiveR&D in collaboration withindustry

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Opportunities Threats

Global opportunity projected at USD1.75 Trillion by 2014 and 2.4 Trillionby 2020. Export of USD 80 Billionprojected by 2020

Domestic Demand of USD 400 Billionby 2020

Growing Demand - Supply Gap Investors looking for alternative

locations due to concerns of IP andsearch for talented and cost effectivemanpower etc.

FE outgo liability – ICT allpervasive – growing usageinevitable

National/ Business/ Personalsecurity risks

Loss of employment opportunity(Social angle)

Flux of sub-standard goods

5. Core Activities of ESDM

‘Electronics industry’ entails electronic systems design and manufacturing whichcomprises semiconductor design, high-tech manufacturing, electronic components,Electronics manufacturing Services (EMS), and electronic systems design for consumerelectronic products, telecom products and equipments, IT systems and hardware andother segments.

Electronics systems design and manufacturing ecosystem

The domestic industry is presently characterized by high level of imports and lowdomestic content. This will start to change with the Government’s pro-active policyinitiatives to encourage higher domestic value addition and product development.

The performance of Electronics Hardware Manufacturing Sector over the EleventhFive Year Plan period is given at Annexure-1.

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6. Implementation Plan / Recommendations

6.1 Modified Special Incentive Package Scheme for improved value addition

Manufacturing base of electronic products in the country is grossly inadequate incomparison to demand of such goods. Even in cases where products are manufacturedin India, the extent of domestic value addition is low. Semiconductors are at the heart ofany electronic systems and constitute a significant part of the total value of the Bill ofMaterial (BOM). The main impediments in the way of attracting investments formanufacture of semiconductors, components and electronic products are disabilities likehigh cost of power and finance, high transactional costs and poor base of supply chain(components and accessories). Presently, semiconductor wafers, semiconductors andmajority of the hi-tech components are being imported. The manufacturing capabilitiesfor semiconductors are highly capital intensive and have to deal with constantlychanging technology. Development of supply chain is essential for the manufacture ofelectronic products with higher domestic value addition.

Indian electronics industry faces significant challenges like high transactionalcosts as a result of stringent rules and regulations, complex administrative processes andinfrastructural deficiencies. An analysis by the Federation of Indian ExportOrganization (FIEO) reveals that cost disabilities, including the transaction costs borneby Indian exporters vary and range from 19 to 22%. In contrast exporters in developedeconomies pay only 2 to 3% of transactional costs. As per the report of the Task Forceon IT/ITES and Electronics Hardware Manufacturing, the ESDM industry in India lagsbehind its counterparts in other countries despite having basic capabilities to develop thesector due to its strength in software and software services sector. Therefore,Government needs to offer a package of incentives to attract domestic and globalinvestments into the Electronics Systems Design and Manufacturing (ESDM) sectorwithin Electronics Manufacturing Clusters (EMCs) as a means to minimizing thedisabilities.

To eliminate disabilities arising due to higher cost of logistics, power, finance,transportation, transactional costs and fragmented nature of location of industry as wellas attract investment for development of manufacturing eco-system like ElectronicsManufacturing Clusters and encourage manufacturing across the entire value chain,financial incentives need to be provided. Hence, announcement of Modified SpecialIncentive Package Scheme (SIPS) to attract electronics manufacturing investment atvarious levels should be expedited. The incentives under Modified SIPS should beaimed at providing a level-playing field and achieving competitiveness in the globalmarket. The scheme should attempt to partly offset the aforesaid and other difficultiesthrough appropriate incentives.

The scheme should include Electronic Manufacturing Services (EMS) as well. Thescheme needs to be dynamic in nature to remain in tune with latest technologicaldevelopments, so as to carry out modifications to include new technologies like microand nano technologies, including smart systems.

6.2 Promotion of Electronics Manufacturing Clusters

The growth of the electronics hardware manufacturing industry in the country isconstrained by several factors. This was the first sector to face elimination of import

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duty on account of implementation of Information Technology Agreement (ITA-1) ofWTO and suffers from several disability factors which impact its competitiveness. Themajor ones relate to high cost of power, finance & logistics; high transaction costs;inadequate infrastructure and high raw material costs due to cascading taxes andinverted duties on dual use inputs. The impact of disabilities increases in proportionwith value addition. It is estimated that for a value addition of 50%, the incidence ofdisability is about 8%, of which power accounts for 35%, finance 30%, logistics 20%and others 15%. Additionally, absence of a well developed supply chain, supportingecosystems and low scales of production render indigenous electronics hardwaremanufacturing uncompetitive and discourage capital intensive, high value additioninvestments.

Several of the above disabilities can be addressed through organisingmanufacture in the Cluster model. A well developed cluster can give a unit located in ita cost advantage of 5 to 8% because of various reasons such as increased supply chainresponsiveness because of manufacturing consolidation near suppliers, decreased time-to-market, superior access to talent and lower logistics costs. The cluster developmentapproach besides aiding the growth of the sector helps development of entrepreneurialecosystems which drive innovation and catalyze the economic growth of a region byincreasing employment opportunities and tax revenues.

India has created a world class electronics manufacturing ecosystem inSriperumbudur in the state of Tamil Nadu, which is a testimony of India‘s capability asa low cost manufacturing country. It is essential to take this success forward and set upworld class infrastructure. Further, the Government may identify more locations to setup clusters and replicate the success of Sriperumbudur. This will bring in synergies,save costs and improve competitiveness. Therefore, Government should focus onestablishment of “Electronics Manufacturing Clusters (EMCs)” across the country forenhancing the competitiveness of electronics hardware manufacturing sector.

Government needs to promote existing and create new clusters as islands ofexcellence by creating a world class manufacturing ecosystem in association with StateGovernments. Financial support should be provided for setting up of qualityinfrastructure through public-private partnership in order to mitigate disability costs tothe extent possible, for both Greenfield EMCs (new clusters) and Brownfield EMCs(existing clusters). These EMCs would aid the growth of the ESDM sector, helpdevelopment of entrepreneurial ecosystem, drive innovation and catalyze the economicgrowth of the region by increasing employment opportunities and tax revenues. Statesshould be encouraged to create EMCs provided they satisfy certain basic minimum‘hygiene factors‘ to enable creation of end-to-end value chain with up-stream and down-stream industries in close proximity. These are:

State Nodal Agency for single window clearance and inter-departmental co-ordination.

Ready infrastructure, easy access to port/air-port and State-of-the-art logisticsfor fast track clearance and quick turn-around.

Making available land, power and other amenities within state control atconcessional rates

Easy access to Financial Institutions and Commercial bank

Create access to talent - Infrastructure for skilled manpower,Technical/Vocational training institutions

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Infrastructure for collaborative R&D and Testing

Institutional framework for market development - National and International

Soft-Infrastructure and amenities for employees - quality housing, health-care,education facilities, restaurants, entertainment avenues etc.

6.3 Semiconductor Fabs

Semiconductor is at the heart of any electronic system and constitutes at least25% of the total value. In case of high-end equipment and mobile handsets, this contentgoes as high as 60%. Presently, while this is imported, in order to enable manufacturingof electronic equipment and also push up the value addition in India, setting up ofSemiconductor wafer fab is a pre-requisite and critical requirement for enhancingdomestic manufacturing capabilities in India. Government had put in place a SpecialIncentive Package Scheme (SIPS) for attracting Fab to India in the year 2007. However,due to the dramatic downturn of the global economy affecting the demand, it was notsuccessful in attracting investment in Semiconductor wafer fab. The policy needsmodification to meet the current situation.

All out efforts must be made by the Government to set up two fabs:

Fab-1: To be set up as a green field cutting edge state-of-art facility. This wouldrequire provisions for giving equity / grant to an established Integrated DeviceManufacturer to establish its fabrication facility in India. The amount of equity /grant would have to be negotiated or through bids.

Fab-2: To set up a semiconductor fab with established technology to supportfabrication of varieties of chips to meet the requirement of high volume productsas well as the requirement of the fab-less design companies on pay per use basis.This activity may involve acquiring an existing fab abroad and its relocation toIndia, if possible.

Besides the above, setting up of semiconductor fabs and ATMP should also besupported under the Modified SIPS Scheme.

6.4 Preferential Access to Domestic Electronics Goods

Preferential market access in Government Procurement and procurement byGovernment Licensees (without compromising on price and quality) is one feasiblemechanism to induce demand and encourage manufacturing in India as it would work asanchor for the industry. It is felt that unless some assured market is providedmanufacturing will not take root in India. Therefore, it is felt necessary that preferencein Government Procurement and procurement by Govt. Licensees for electronicproducts ‘Manufactured–in–India’ / ‘Indian Products’ is provided. The terminology‘electronic product’ includes ‘telecom products’ for purposes of all theserecommendations. Many countries in the world, including the USA, have such policy inone context or the other.

The process of providing preferential market access entitlement in GovernmentProcurement and procurement by Government Licensees (or Government aidedprocurement) should be to provide 30% preferential market access to

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‘Manufactured–in–India’ / ’Indian Products’ in procurement of ElectronicProducts by the Central, State Government, PSUs and by Government Licenseesby matching of L1 price and on satisfying the technical specifications of thetender.

For Defence related procurements, the “Defence Offset Policy” be amended tospecifically take care of Electronics sector. It is proposed that in case ofprocurement of items with electronics, at least 10% of the procurement price(which should gradually be increased to 15% over the next 5 years), be earmarkedfor ‘Manufactured–in–India’ / ‘Indian Products’ electronic products, which go intomanufacture of that item. In case domestic electronic products relating to aparticular purchase are not available, the supplier must undertake a commitmentfor investment for manufacture in India of any electronic product/any of the inputssuch as components, sub-assemblies, design, embedded systems etc. to meet theoffset obligation (in terms of value).

6.5 Research and DevelopmentThere is an urgent need for intervention to promote and develop innovation,

R&D, Indian IP and manufacturing within the country for electronic products, whichinclude telecom products, especially those having security implications.The R&D strategy should inter-alia address the following issues:

i. Offering research and development grants to companies that generate productrevenues from the country and have substantial value addition done within thecountry.

ii. Providing incentives to encourage innovation by providing higher taxconcessions for R&D expenditure.

iii. Facilitation of patent filing.iv. Providing seed fund to support technology and innovation focused start-ups.v. Encouraging collaborative research between industry and academia through

suitable grants for the purpose.vi. Setting up of Center for Research in Embedded Systems and Semiconductor

technology (CREST).vii. Government should also support pre-competitive electronics collaborative

research in the areas of energy, medical, security, education and agriculture.viii. Promoting developments in a manner that Intellectual Property resides in

India.ix. Promoting development of electronics hardware products/devices suitable for

unique Indian requirementsx. Carrying out effective negotiations for cross licensing and other software

products for development of Indian ICT products

Electronics Development Fund

A dedicated ‘Electronics Development Fund (EDF)’ should be created with aninitial corpus of Rs.3,000 crore for Innovations, R&D, Intellectual Property and productdevelopment and promotion of electronics equipment manufacturing. This fund wouldalso support seed, angel and venture funding. The fund may be leveraged to acquireforeign companies so as to shift the production of products currently imported in largevolumes, into the country. Some of the PSUs which are well positioned may take a leadrole and venture into such acquisitions. The EDF should inter-alia have the followingcomponents:

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- Offer R&D grants and concessions to companies generating product revenues anddoing substantial value addition

- Provide seed fund to support technology and innovation focused start-ups, angeland venture funding

- Encourage collaborative research between industry and academia- Support pre-competitive electronics collaborative research in the areas of

energy, medical, security, education and agriculture- Technology Acquisition Fund- Support setting up of Center for Research in Embedded Systems and

Semiconductor technology (CREST)

The fund should be managed professionally and accessible to both Government andprivate sector.

6.6 Export Promotion of ESDM

ESDM is sunrise sector and therefore, an omnibus scheme of incentives isessential for its growth. Towards this, following export incentives may beprovided/measures may be taken in order to promote export of ESDM Sector:

a) The entire ESDM Sector may be extended the benefits of Focus ProductsScheme (FPS) including Electronic Manufacturing Services (EMS).

b) The benefit of Market Linked Focus Product Scheme (MLFPS) may also beextended to the entire ESDM Sector including Electronic ManufacturingServices (EMS).

c) DEBP Scheme may continue or may be carried out with duty draw back Schemeand entire ESDM Sector be provided this benefit. Today some items areincluded in the scheme but in order to promote export of entire ESDM Sector,the entire sector may be extended this benefit. As IT goods are at Zero duty, anew window has to be carved out.

d) DTA sales of ITA-1/zero duty electronics goods may be treated as physicalexports and extended all the benefit of export schemes.

e) Income Tax exemption on export from ESDM Sector for a period of 10 years.

f) Continue the existing incentive schemes.

g) Ensure stable fiscal regime at least for 10 years.

h) There are a large number of companies in US/ Europe who have closed down orare at the verge of closing down. They would like to migrate their manufacturingto India but retain brand/ marketing in US/ Europe as the case may be. Suchcompanies should be consciously wooed. Specific incentives should be createdfor them. In addition road shows should be conducted in these countries.Industry associations can be engaged with the effort of identifying suchcompanies abroad.

i) Communication and branding should be developed to showcase high techcompanies in electronics/ electronics systems design in India.

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j) Region specific studies be evolved for boosting exports. For example,electronics has tremendous scope of exports in Africa, South America. PTAsmay be developed for countries in these regions.

k) Procedures need to be simplified.

l) Product offerings under various bilateral programs to Africa / Latin Americaetc., should preferably be with domestically produced electronics.

m) Carry out effective negotiations in World Trade Organization (WTO) for marketaccess to Indian industry in foreign countries and for removal of barriers to tradein its forums of Non-Agricultural Market Access (NAMA), GATT, TRIPS,TRIMS etc.

6.7 Policy and Regulatory Framework

The overall manufacturing in the electronics hardware sector would work underthe framework of existing Acts and Rules and the existing FDI policy. The relevantActs include the Industries (Regulation and Development) Act, 1951; Foreign Trade(Development & Regulation) Act, 1992; the Industrial Disputes Act 1947; the FactoriesAct, 1948; various other labor legislations relating to wages, working hours, conditionsof service and employment, the SEZ Act, 2005. Issues in the regulations relating toover-time and contracts need to be addressed to meet the highs and lows of demand.

The review process should also assess the need to update the skill assessment on aperiodic basis. The requirement of having special legal provisions for electronicsmanufacturing clusters needs to be examined.

Indian standards for electronic products should be mandated at the earliest. Thestandards for voltage, frequency, thermal variations as well as EMC/EMI and safetyshould be created for Indian conditions. The need for developing a specific legislationfor the purpose should be examined if the existing provisions of Bureau of IndianStandards Act, 1986 and rules made there under are found to be insufficient. Similarly,standards for energy efficiency for electronics products in harmonization withinternational standards should be developed. Suitable incentives should be provided toencourage companies to adopt such standards.

A dedicated legislation for the management of e-waste, mandating allstakeholders in the electronics value chain to execute their responsibilities and liabilitieswith no adverse impact on the environment should be considered. Producers andmanufacturers should be encouraged through effective take-back programmes to ensurethat e-waste would be recycled in an environmentally sound manner. Similarly,component manufacturers should be encouraged to ensure that the content of hazardouselements is minimized.

Fiscal Incentives: A stable tax structure needs to be put in place in order to encouragelong term Investment by companies. The introduction of Goods and Services Tax (GST)that is expected to bring rationality and transparency to the tax structure needs to beexpedited. However, challenges of Octroi, Surcharge and Entry tax should beeliminated. Availability of financial resources at attractive rates and according priority

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sector lending status to IT purchases are important measures for promotion ofelectronics hardware manufacturing.

Simplification of Procedures: All operations (Import, Export and DTAsales/procurement) may be permitted on self-declaration and post-audit basis so as toreduce transaction time and cost. To start with, following simplification of procedure forimport of goods without payment of duty (Basic & CVD) by DTA units manufacturingITA-1 items and notified zero duty electronic items is suggested, based on the newscheme of self-assessment as per CBEC Circular No.17/2011-Customs dated 8.4.2011:

(i) All imports (in terms of raw materials, components, parts, consumables, sub-assemblies and capital goods) be permitted without payment of any duty/taxesby the units manufacturing electronics items which are importable at zero basiccustoms duty.

(ii) Imports, exports as well as DTA sales by these units be permitted on self-assessment/self-declaration basis by following the procedure laid down inDepartment of Revenue (CBEC) Circular No.17/2011-Customs dated 8th April,2011 regarding “Implementation of ‘Self-Assessment’ in Customs”.

(iii) Duty (Basic customs duty + CVD) as applicable, would be payable only on salesby these units to DTA.

(iv) There would be no export obligation on these units since at zero duty there is nodifference between the goods exported and those which are supplieddomestically in competition with imports at zero duty.

(v) DTA sales of electronics items manufactured by these units which areimportable at zero basic customs duty be accorded the status of physical exports.

(vi) All supplies from the DTA to these unit be treated as deemed exports.

(vii) Scrap generated by the units be allowed for clearance from the premises on self-declaration on payment of applicable duty.

6.8 Human Resource / Skill Development

As per the DIT Taskforce Report 2009, the Indian electronics industry has thepotential to be USD 400 billion by 2020. The Indian electronics hardware sector has 6key verticals, namely Consumer Electronics, IT Hardware, TelecommunicationEquipment, Electronic Components, Strategic Electronics and Industrial Electronics.Consumer Electronics and Telecom Equipments are the largest segments with about27% share each in total production.

According to the Task Force set up by DIT, it is estimated that around 27.8million people will be employed for a production of USD 400 Billion by 2020. Thereneeds to be skill based mapping of this requirement, i.e. the manufacturing segment,sales and support segment, and the research and development segment. A Note onHuman resource requirement in the Electronics Hardware Manufacturing Industry is atAnnexure-2.

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Skill gaps and focus areas for skill development

Skill gaps: The electronics manufacturing sector has a lot of potential for large-scaleemployment of ITI graduates, diploma holders, hardware engineers etc. Semi-skilledpersons with some training can also be employed in this sector.

According to the National Skill Development Corporation (NSDC) report onhuman resources and skill requirements in the electronics and IT hardware sector, thelargest concentration of manpower is in the manufacturing segment followed by aftersales and sales support, and R&D. Regulations relating to over-time and contracts alsoneed to be revamped to meet the highs and lows of demand.

It is observed that while there are certain skill gaps which are common acrossdifferent sectors of the electronics hardware manufacturing industry, there are certainskill requirements and gaps which are unique to each sector. For example, while lack ofmachine handling abilities and knowledge of latest technologies is a common skill gapin the production function, insufficient knowledge about the manufacturing/assembly ofPCB of Flat TVs, LCD TVs, Plasma TVs is unique to the Consumer Electronics sector.

The supply of quality talent from the education system is yet another challengingtask. The stakeholder feedback in the primary survey reveals that the following majorissues are impacting the educational scenario:

Insufficient number of faculty members Inadequate infrastructure Lack of industry interface/practical training Delays in curriculum changes Lack of fluency in English.

Focus areas for skill development: The focus areas for skill development as per theNSDC Report are given below:

Manufacturing

- Basic Manufacturing

Basic Manufacturing skills Safety norms Meeting pollution control laws, etc. Punctuality Reading circuit diagrams and populating boards Awareness of shop floor, concepts of ESD Adherence to cleanliness norms

- Advanced Manufacturing and Contract Manufacturing operations covering:

Quality certifications like Six Sigma Productivity measurement Process control Assembly line scheduling Costing and budgeting

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Basic management program, effective meetings, constructive confrontation etc.

- High-Tech Manufacturing

Chip Mounted Technologies Complex LCD Technologies Semiconductor Technologies Plasma displays Nanotechnology

Servicing Support

L1 and L2 servicing/repair of Mobiles, Telecom Equipment, IT Hardware,Consumer Electronics

Higher order servicing – L3 and L4 repairs

The above two skills sets account for about 70% of the incremental human resourcerequirement between themselves.

In the area of semiconductor design, the skill gaps are as follows:

a) Quality of Talent and fresh talent supply: Difference in expectations betweenindustry and the Indian education system result in low skill-set levels available fromnon-premier institutes implying higher training costs and a considerably large gestationperiod before the engineer is productive.

b) Lack of experience: Companies have cited instances of lack of experienced talent inboth the breadth and the depth of experience, where breadth indicates the knowledge ofall the aspects of a design flow and depth indicates an extensive knowledge of aparticular aspect of the design flow

c) Digital vs. Analog: Although India has good capabilities in the digital technologies;it faces a shortage of talent capable of handling analog technologies

d) Lack of product know-how: There is a lack of talent for product conceptualizationand product management for emerging markets. Systems management still continues tobe driven by overseas headquarters; talent for this need to be nurtured.

Requisite steps shall be required for Human Resource Development in thesector. IITs and premier Engineering Colleges need to be involved to design anddevelop specialized courses in semiconductor design and other high tech verticals withfinancial assistance from Government, if necessary. The Directorate General ofEducation and Training under the Ministry of Labour may be requested to introducetraining modules for course materials for technicians in order to create a verticalsspecific skilled workforce which could service and maintain various electronic products.A Government Fellowship programme to train selected engineers / technologies andscientists in Electronics in world class institutions abroad should be taken up.Fellowships may be at two levels (i) research and (ii) higher degree (M.Tech). This maybe done in consultation with industry to offer employment opportunities. There is apressing need for skill building to increase employability and meet demand across allsectors.

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Following recommendations are made for skill development in the Industry:

• Skill development of workforce at supervisory level and below (Diploma / ITIqualified or below) and engaged in assembly operations, sales and servicesupport- Introducing short-term courses and opening training institutes in after-

sales service support- Introducing short-term courses to train people in sales- Inculcating simple assembly/related skills and shop floor ethics at grass

roots level- Improving skills for contract manufacturing and assembly operations- Creating appropriate infrastructure• Skill development of workforce - technical graduates and above

- Opening engineering finishing schools for technical graduates- Capacity addition and curriculum updation in Technical Education- National/Regional Centres of Excellence for Design and Development

skills- Course on Manufacturing Management Capability- Imparting specialized training for emerging high technology

manufacturing- Improvement of Soft Skill Sets

Skill development in high-tech manufacturing: A three-pronged approachtowards skill development in high-tech manufacturing for the electronicshardware manufacturing industry is proposed:

- 4 Regional High Tech Training Centres well-equipped with state-of-artlaboratory facilities should be set up at the major clusters

- Curriculum updation in engineering colleges: The need for such courses (bothspecific and generic) is highlighted by the fact that while electronics engineerslack skills and exposure to production processes, mechanical engineers lacksufficient exposure to electronics, but the industry/shop floor expects multi-skilling in both these areas. Major areas proposed in the curriculum includeSurface Mounted Technologies (SMT), LCD technologies, semiconductors,nanotechnology, PLC and robots, and quality practices and tools.

- Train the trainer initiatives: It is recommended that large companies which havehigh tech manufacturing equipment and production facilities should trainteachers from select institutes.

Funding for the above schemes has to be sourced through a mix of Government funded,Private funded, and Partnership funded mechanisms.

Talent requirements in semiconductor design segment - Recommendationsa. Setup specialized institutes for semiconductor design with government and industry

players as key stakeholdersb. Cultivate student interestc. Faculty developmentd. Employee advancement

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Funding for the above schemes can be sourced through a mix of Government funded,Private funded, and Partnership funded mechanisms. Funding options available in theNational Skill Development Mission may also be used.

6.9 Compliance Framework for Safety and EMC Standards

Lack of domestic regulations and standards is a potential cause of import of sub-standard goods that may not only put our consumers and environment at risk but alsoleads to an unfair and cut-throat competition for the domestic manufacturing industry.The individual consumer seldom has the means to identify sub-standard / hazardousgoods or deal with related failures at the time of purchase. Instead, the consumer looksto the Government for protection against such failures. Intervention by Government todetermine and control the technical attributes of products can only be in the form of“technical requirements.” It is with that perspective in mind, the need for creating andmandating standards has been very strongly advocated by all the stakeholders, in therecent times.

India is a signatory to World Trade Organisation (WTO) Technical Barriers to Trade(TBT) Agreement. WTO members are not to implement technical requirements thatcreate unnecessary obstacles to international trade. However WTO-TBT Agreementprovides flexibility for member countries to specify the requirements in interest ofnational security, prevention of deceptive practices, protection of human health orsafety, animal or plant life or health, or the environment. WTO members have to ensurethat products imported from another WTO member are accorded the same treatment asproducts produced locally or by any other member state. This means that theGovernment is not allowed to set up measures that would discriminate against anyimported products. While it is felt that there is a pressing need for India to invokestandards, a balance has to be settled by adhering to WTO TBT Principles andproviding impartial treatment to imports vis-a-vis the domestic industry. In the light ofthis background, it is recommended that the following parameters be followed forstandards and test/certification in the country:

• Mandating Standards

- BIS to ensure availability of Indian standards for every finished electronicgood

- Mandating compliance to safety and EMC standards in a phased manner- Mandating compliance to RoHS standards at the earliest

• Adequacy of Infrastructure

- Development of necessary infrastructure for testing and mandating standards includingrecognition of Manufacturers test labs and international agencies on reciprocal basis

• Implementation / Enforcement

- Strengthening DIT to regulate standards / coordinate compliance etc.- Create specialized enforcement wing to handle fake/ spurious /non- complying goods- Bridge skill set gaps with enforcement agencies / border control agencies- Consumer Awareness Campaign

Financial Requirements: A Budget of Rs. 275 crore over the Twelfth Five Year PlanPeriod is proposed for ensuring compliance of consumer, IT and other electro-technicalgoods to standards of Safety and EMC, etc. This shall be utilized towards upgradation

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and set-up of test labs, accreditation cost, mutual recognition schemes and participationin international meetings etc., creation of cell in DIT to manage regulation relatedissues, introduction of promotional training programmes for industries / border controlagencies / QC personnel, upgradation of standards and participation in technicalcommittees, advertisements, campaign etc.

6.9 Developing “Made in India” Brand

A credible “Made in India” brand for electronic items should be developed to addressthe confidence deficit in electronic hardware manufacturing and to bring about a cultureof innovation and product development at cutting edge technology. As part of the effort,a comprehensive communication programme, targeting various stakeholder audiencesshould be developed and implemented. The messaging for each stakeholder groupwould be customized based on their role in the development of the sector. A cell shouldbe set up within National Electronics Mission (NEM) for international and nationalmarketing of investment opportunities in ESDM. The target groups that need to betargeted include: industry - existing and potential, domestic and foreign; financinginstitutions - Banks, VCs, Angel investors, public investors, FIIs; academia, students;government agencies etc.The activities that need to be taken up as part of this campaign should include:

i. Creation of a slogan for “Made in India” brand.ii. Supporting magazines in the area of electronic hardware manufacturing - print

and electronic.iii. Developing blogs for reaching web audiences.iv. Developing Coffee Table Book/brochures and other publicity material.v. Including reference to the same in major speeches of Prime Minister, Finance

Minister and Minister of Communications and Information Technology andother policy thought leaders.

vi. Organizing road shows in India and abroad.vii. Declaring Decade of Electronics hardware.

6.10 Sustainable growth and development - Green electronics & e-WasteManagement

To ensure sustainable growth and development of the electronics industry in India,standards for the energy efficiency for electronics products in harmonization withinternational standards need to be developed urgently for the Indian market. Suitableincentives will need to be offered to encourage companies to adopt such standards.

Electronic Waste (e-Waste) comprises of waste electronic / electrical goods which arenot fit for their originally intended use. These include items such as computers, mobilephones, TVs, stereos, refrigerators, air conditioners, other consumer durables, etc. E-waste is not hazardous waste pre-se but hazardous constituents such as lead,cadmium, mercury, Poly Chlorinated Bi-phenyls (PCB), Brominated Flame Retardant(BFR) present in the e-waste render it hazardous to health and environment if notrecycled properly. As per a study by MAIT-GTZ, e-waste generation in India isexpected to be of the order of 4,70,000 MT by 2011.

Government of India treats e-waste as hazardous waste for purposes of recycling and ispresently included in the hazardous wastes rules. Various regulations that coverdifferent aspects of e-waste are: (i) The Hazardous Waste (Management and Handling)

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Rules, 1989 as amended in 2008 - e-waste categorized as a hazardous waste.Transboundary movement (export and import) of e-waste regulated in accordance withthe Basel Convention and waste categories included in Schedule III of these rules.Registration is mandatory for all e-waste recyclers, as e-waste is listed in Schedule IV;(ii) The Municipal Solid Waste (Management & Handling) Rules, 2000 - for all non-toxic contents; and (iii) The Foreign Trade Policy restricts import of second-handcomputers and does not permit import of e-waste.

The Guidelines for Environmentally Sound Management of e-waste published in March2008 by MOEF and Central Pollution Board (CPCB) are only voluntarily and notmandatory. This is the basic guidance document recognizing fundamental principlesviz., (i) Producer Responsibility (EPR); (ii) RoHS (Restriction on HazardousSubstances); (iii) Best practices and (iv) Insight into technologies for various levels ofrecycling.

The issue of e-waste management needs immediate attention. The government shouldannounce a dedicated legislation for the management of e-waste, mandating allstakeholders in the electronics value chain to execute their responsibilities and liabilitieswith no adverse impact on the environment. Producers/ manufacturers, through effectivetake-back programs, need to ensure that e-waste is recycled in an environmentallysound manner. Similarly, component manufacturers should ensure that the content ofhazardous elements is minimized (RoHS).

6.12 Promotion of Semiconductor Chip Design IndustryThe Goal should be to sustain and nurture high-class semiconductor design manpowerat a growth rate of 20% p.a. to double its current output levels to reach a workforce sizeof 400,000 in the next five years. Following is recommended:

(i) Special Manpower Development Programme (SMDP III) should be enlargedin its scope to reach out and include more institutions as Participating Institutions (PIs).National Knowledge Network (NKN) should be leveraged for SMDP III.

(ii) Set-up specialized institutes for semiconductor design: Four technologyinstitutes specific to semiconductor design with government and industry players as keystakeholders should be set up.(iii) Create a pool of skilled labour for semiconductor design industry: Thegovernment should consider setting up a for-profit organization through PPP on similarlines as NSDC.

(iv) Support dedicated foundries to create devices meeting local demand:i. Create foundries at second-to-last technology nodes which require less

investment

ii. Create foundries for analog and mixed signal technology

(v) Protect and promote IP: Foster innovation - encourage Indian entities to develop IP

Encourage IP ownership by Indian entities

Encourage Indian universities to do international quality research

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(vi) Provision of R&D funding initiatives for academia and industry:For academia: A council should be set up by DIT to identify good individual researchprojects undertaken by M.Tech / Ph.D. scholars and projects undertaken at institutelevel.For industry: Government of India should setup a semiconductor fund of excellence toprovide funds to encourage private companies who undertake R&D activities for India-specific products designed in India.

6.13 Promotion of Electronics Components industry

(i) Financial Measures and Incentives to promote Indigenous manufacturingas well as attract Investments: The government can make amendments/relax a fewmonetary policies to provide required boost for the Indigenous manufacturers to set upmanufacturing plants and help narrow the difference between the imports and localproduction such as expediting introduction of GST, providing freedom to source fundsglobally and lowering interest rates for funds sourced from financial institutions. Thedisabilities need to be compensated and special incentives be provided on investmentsin manufacturing and R&D. A stable policy environment is required to attractinvestments.

(ii) Promote Electronics Manufacturing Clusters for creating a harmonised andcohesive eco‐system which enables higher efficiency and lower costs. Global playersare looking for manufacturing in low cost economies such as India. Relocation ofplants, even of SMEs must be supported in a big way to expand the manufacturing basein the country. For attracting investments and Transfer of Technology (TOT), goodinfrastructure (as in Clusters) must be provided and single window clearances beprovided to reduce project set up time. Procedural simplifications are necessary toreduce turnaround time and for ease of doing business.

(iii) Promote Research & Development of electronics in the country: A strongdemand (both local & global) and a technically inclined set of customers has forced themanufacturers to put on their thinking caps and come out with newer products in orderto sustain in a highly competitive environment. Hence, the area of R&D is an importantaspect for the electronics industry. Currently, India lags behind significantly with mostcompeting economies. Therefore, it is vital that the government promotes R&D in 2-3critical areas of technology development and facilitates the industry and the R&Dcommunity into taking up this activity with specific and focused goals. Monetary andInfrastructure related support should also be offered through grants. The governmentcould explore a Public private partnership model in order to sustain the R&D Center.Some of the areas in which India could start research & development and develop anindigenous manufacturing process are:

Micro Motors and Stepper Motors Flat panel display devices – LCD’s, LED Panels, and Plasma Photosensitive semiconductor devices- Solar PV Cells and Solar Energy Generation Systems including its components / inverters Discrete Semiconductors - Diodes, transistors and similar semiconductor

devices; Passive Chip Components Light Emitting Diodes and LED Based Lighting Systems Components and accessories for Mobile Phones Advanced Sensor technology for multi-sensor devices like Temperature,

humidity, air flow, motion etc.

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Mounted Piezoelectric crystals Lasers

The above find applications in most electronic products and therefore have a hugedemand both locally as well as globally. India could also explore the option of focusingon newer technologies like Nanotechnology, Micro Electro-Mechanical Systems(MEMS) and superconductivity.

(iv) Setting up technical standard for products to be sold in India: Indianmanufacturers have indicated that most competition economies have set up their owntechnical standards to ensure quality products are sold within the country. For example,EU legislation follows the “CE Mark” while China has developed their own standardstitled “CCC mark”. These standards ensure that no manufacturer producessub‐standard products by using cheaper components and violate the existing levelplaying field. It is vital that India develop its own standard which encapsulates thevarious safety and environmental standards that is at par with global standards, so thatthe Indian consumers get quality products, the Indian manufacturers get a level playingfield and the environment is protected. Also, the standard must ensure that importedproducts meet local requirements; warranty, safety, energy consumption, technologystandards.

(v) Provide preferential access to Indian Products well as Manufactured-in-India Products in Government procurement, PSU purchases as well as byGovernment licensees

6.14 Strategic Electronics

India’s defence and aerospace sectors are poised for substantial growth on the back ofeconomic growth and in the interest of national security. Driven by geo-politicalconsiderations, India is expected to be a top-5 market for defence equipment by 2015.Similarly, economic growth and a focus by commercial aircraft manufacturers on low-cost countries are expected to create growth in the aerospace market in emergingmarkets in general and India in particular. Transnational and multi-national co-development and co-production are on the rise and increasingly seen as critical tocompetitiveness. India has an opportunity to play an important role in this globalphenomenon. Following measures are recommended:(i) Accelerating process for private sector and indigenous participation in Strategic

Electronics(ii) Level playing field for private players and(iii) Collaboration with Indian manufacturers.(iv) Amendment of the Defence Offset Policy for enhancing its scope to include

electronics products for meeting the offset obligation should be pursued with theobjective to promote electronics hardware manufacturing.

6.15 Promotion of Vendor Development and Electronics Support Services likerepair and maintenance

Encouraging local eco-system development would require closer interaction betweenthe industry, equipment/ technology suppliers, investors, financial institutions, Banks,Government user Ministries/ Departments and the policy makers etc. Finished goodsmanufacturing companies, jointly or individually, need to engage in a vendor/supplier

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development program. Hence, a programme for Vendor Development needs to beevolved.

Electronics Support Services like repair and maintenance are needed to support thegrowing demands of electronics products, particularly with fast changing technologies/features. Therefore, it is recommended that appropriate programmes be developed tosupport electronics support services.

6.16 International Collaboration

ESDM is recognized as a growth sector worldwide. Strategic internationalcollaborations and partnerships aimed at meeting the priorities set out under theproposed Mission should be developed, along with effective technology transfermechanisms and strong IPR protection. Cooperation should be encouraged at the levelof research organizations along with industry partners and at individual level also togenerate new ideas. Wherever feasible, cooperation through bilateral and multilateralarrangements should be facilitated. Joint research programmes under bilateralcooperation should be taken up as being done in other scientific Ministries.

6.17 Government Procurement Procedure - Need for electronics hardwareprocurement reforms

One of the major procurers of electronics hardware is Government/GovernmentAgencies due to large scale deployment of electronics in major projects like e-governance, National Knowledge Network (NKN), National Broadband Plan, TelecomNetwork Expansion, National Mission on Education through Information andCommunication Technology (NME-ICT). However, traditional e-procurement practicesdo not support the nature of this industry i.e. fast rate of technologicalobsolesce/changes in specifications and dominance of large OEMs with undue influenceon the market, etc.It is recommended that an Inter-Ministerial Group (IMG) comprising of representativesof Ministry of Finance (Department of Expenditure), Ministry of Commerce andIndustry, Ministry of Consumer Affairs, Ministry of Human Resource Development,Department of Information Technology etc. and also involving the Industry/ IndustryAssociations may be set up to examine the recommendations made by MAIT andNASSCOM in this regard.

6.18 Statistics and Systematic Data Collection

It is vital to build a credible and consistent source of information on ElectronicComponents, Raw Materials, and Equipment Industry as well as Market, with thefollowing objectives: Identifying Opportunities for manufacturing where India has an advantage or

existing eco-system

Status of investments and investment needed to meet the targets to ensure strategicstrength and independence for the country

Country-gap scenario – equipment / components not manufactured or notmanufactured to desired specifications by indigenous manufacturers; quantity wisegap

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Profiling of the potential users, especially in case of investors in the components andEMS sectors and Competitors for enabling an informed investment decision

The data would to an extent help in sourcing of inputs from local sources and thushigher added value

Cost advantages and disadvantages for high value add manufacturing and reasonsfor lack of investments

Determine and provide direction to R&D activity to make the nation ready for futurechallenges and opportunities

This would require regular mapping of the electronics Value Chain as well as map theEnd-User Electronics Equipment Market. To arrive at such a credible source ofinformation, the following steps need to be taken and information collected:

Current Status including production and demand for raw materials, components,sub-assemblies (where applicable) and finished products/ equipment

Disaggregated Export and Import data

Projected demand – domestic as well as for accessible export markets

Identify ‘star’ products and components which have potential for rapid growth andobtain global statistics on the same. This will enable assessment of their futurepotential and relevance for Indian market and manufacturers

Reasonably accurate data needs to be collected about the industry as detailed above, toderive useful information about the industry. This may be done by one or more of thefollowing methods / sources:

o Industry Associations can be called upon to conduct annual studies for collectionof data from industry and by direct sampling in the market. A Budget needs tobe provided by Department of Information Technology for this exercise and theformat in which data has to be collected and presented is to be pre-defined sothat each association follows the same format for their respective segments

o This data can then be consolidated with relative ease and verified statisticallyand/or by Input-Output norms etc so that it is validated

o The above exercise needs to be carried on continuously for at least 5 years. Thiswill enable the researcher to reach a fair degree of accuracy and annual updateswill become easier and will cost less. A detailed survey for data can then becarried out say once in every three years with quick updates for the next 2 years

o Once the Central Excise e-filing system is in place throughout the country, dataon domestic production can be obtained and consolidated HS Code-wise.

o Data on import - export is readily available from the DGFT website and can bedownloaded fairly easily. Once the Associations are conducting the exercise ofindustry and market survey annually, they can use this resource and carry out an

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analysis of export and import trends as well as global movement of goods/ mainexporting and importing countries etc.

The Production and Export Targets for Electronics Hardware for the Twelfth Five YearPlan (2017-2017) under High Manufacturing Growth Scenario (Optimistic) and NaturalManufacturing Growth Scenario are given at Annexure-3.The proposed Outlay for the various Schemes / Programmes for promotion of ESDMSector for the Twelfth Five Year Plan is estimated at Rs.33,375 crore, are detailed atAnnexure-4. The sectoral overview of Electronics Hardware Sector is given atAnnexure-5.

7. Institutional Framework

The execution of the strategy would involve announcing setting up of the NationalElectronics Mission (NEM) for achieving the targeted growth of the sector.The vision of development of ESDM should be achieved through two importantenhancements in the governance processes i.e. greater inclusion and greaterempowerment.

Inclusion

Create a governance mechanism which is inclusive of industry in guiding the high levelstrategy and policy making. At the implementation level it should provide inclusion ofrelevant Government Ministries and Departments whose functioning is directly orindirectly connected to the achieving the Mission objectives.

Empowerment

The Mission should act as a single window for all decisions relating to the electronicssystem design and manufacturing sector. Greater powers should be provided forspeedier and more effective decision-making.

The Mission should work closely with State Governments and the Local SelfGovernments so that they provide greater thrust and priority to the sector. The State andthe Local Self Governments should be encouraged to provide supporting qualityinfrastructure, viz., land, power, water and financial incentives for the sector. SomeState Governments have already announced attractive incentives for electronicshardware industry. The Mission should work with all States to have policies conduciveto the development of the industry. Most importantly, they may nominate a State nodalAgency for single window clearances and inter-departmental coordination, so as toreduce red tape and cut transaction costs.

NEM must support international and national marketing of investment opportunities inESDM. The Mission should work closely with the Department of Commerce,Government of India and industry associations in matters relating to India’sinternational commitments relating to the World Trade Organization and other bilateraland multilateral Free or Preferential Trade Agreements.

Single Window Mechanism

The NEM should provide a unique single window mechanism for the ESDM sector. Itshould provide necessary coordination and speedier decision-making.

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8. Summary Recommendations

i. Create enabling policy framework and provide suitable financial incentives fordomestic ESDM Industry for level playing field.

ii. Set-up a National Electronic Mission.iii. Introduce Modified Special Incentive Package Scheme for improved value

addition.iv. Promote setting up of Electronics Manufacturing Clusters.v. Set-up at least two Semiconductor Fabs in India.

vi. Provide preferential market access to domestic industry in the ESDM sector.vii. Promote and develop Innovation, Research & Development and Indian IP by

setting up of Electronics Development Fund.viii. Promote Exports of ESDM by providing appropriate incentives and schemes.

ix. Provide stable fiscal policy framework and simplify procedures and approvalprocesses for ESDM industry.

x. Promote Human Resource / Skill Development for ESDM sector.xi. Mandate Indian standards for ESDM to safeguard against sub-standard items

and institute a mechanism for mandating compliance to standards for electronicsgoods.

xii. Communications and Brand development as well as International and Nationalmarketing of investment opportunities in ESDM.

xiii. Promote sustainable growth and development of ESDM industry and e-WasteManagement.

xiv. Promote Semiconductor Chip Design Industry.xv. Promote of Electronics Components Industry.

xvi. Promote Strategic Electronics Industry.xvii. Promote Vendor Development and Electronics Support Services like repair and

maintenance.xviii. Promote International Collaboration in ESDM.

xix. Introduce reforms in Government Procurement Procedure for ElectronicsHardware.

xx. Promote Systematic Data Collection for ESDM sector.xxi. Carry out effective negotiations in World Trade Organisations for market access

to Indian industry in foreign countries and for removal of barriers to trade.

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Annexure-1

Performance During the Eleventh Five Year Plan (2007-12)

Electronics Production and Export(Rs. crore)

2006-07 2007-08 2008-09 2009-10 2010-11*

Production 66,000 84,410 97,260 1,10,720 1,21,760

Export 12,500 13,200 31,230 25,900 25,900

* Estimated

Compound Annual Growth Rate (CAGR)

Production: 16.5% (10th FYP: 15%)Export: 20% (10th FYP: 16.6%)

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Annexure-2

Human resource requirement in the Electronics Hardware ManufacturingIndustry

As the sector presents a large opportunity and the increasing thrust on higher valueaddition in manufacturing and product development, the employment in the electronicshardware industry is estimated to grow phenomenally. The functional distribution ofemployment (the employment pattern) in the various segments has been profiled in theDIT-MAIT report on skill development as follows:

Distribution of human resource in the electronics hardware industry

Function-wise breakup of manpower across sectors in IT Hardware andElectronics Manufacturing Industry

R&D Manufacturing Sales After-salessupport

Administration

Consumer Electronics 4% 50% 27% 14% 5%

IT related hardware 3% 21% 25% 41% 10%

Telecom Equipment 4% 30% 30% 30% 6%

Strategic Electronics 12% 46% 8% 20% 13%

Components 16% 62% 8% 6% 8%

Manufacturing 0% 78% 8% 7% 7%

Design 81% 0% 8% 0% 11%

Source: Primary survey of leading players across sectors, IMaCS analysis

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The various educational requirements for different sectors are outlined in the followingtable:

Education-wise breakup of manpower across sectors in IT Hardware and ElectronicsManufacturing Industry

Ph. D/Research

Engineers

Diploma orequivalent

certificationby otheragencies

ITI andother

vocationalcourses

Othergraduates

CA/MBA/etc.12th/10thstandard

ConsumerElectronics

3% 9% 10% 7% 27% 22% 22%

IT related hardware 4% 20% 25% 10% 19% 6% 16%

TelecomEquipment

5% 40% 20% 7% 15% 6% 8%

StrategicElectronics

6% 37% 22% 10% 10% 5% 10%

Components 6% 28% 13% 16% 3% 2% 32%

Manufacturing 1% 20% 15% 20% 2% 2% 40%

Design 25% 60% 5% 0% 8% 1% 1%

Source: Primary survey of leading players across sectors, IMaCS analysis

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Annexure-3

Targets for the Twelfth Plan (2017-2017)

Production and Export Targets

A. High Manufacturing Growth Scenario (Optimistic)(All values in USD Billion)

2011-12 (E) 2012-13 2013-14 2014-15 2015-16 2016-17

Total Demand(Growth Rate: 22%)

82 100 121 148 181 221

Total DomesticDemand(Growth Rate: 22%)

75 91 110 135 165 201

Exports(Growth Rate: 22%)

7 9 11 13 16 20

Production(Growth Rate: 30%)

33 43 55 72 94 122

Imports 49 57 66 76 87 99(E): Estimated

B. Natural Manufacturing Growth Scenario(All values in USD Billion)

2011-12 (E) 2012-13 2013-14 2014-15 2015-16 2016-17

Total Demand(Growth Rate: 22%)

82 100 121 148 181 221

Total DomesticDemand(Growth Rate: 22%)

75 91 110 135 165 201

Exports(Growth Rate: 22%)

7 9 11 13 16 20

Production(Growth Rate: 16%)

33 38 44 51 59 69

Imports 49 62 77 97 122 152(E): Estimated

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Annexure-4

Proposed Outlay (2012-2017)

S.No. Programme / Scheme Outlay(Rs. crore)

1. National Electronics Mission(including Marketing and Brand development)

100

2. Infrastructure and Ecosystem(SIPS, Modified SIPS, EMC, CREST etc.)

20,000

3. Semiconductor Wafer Fabs 10,000

4. Electronics Development Fund 3,000

5. Standards /Test Certification(Strengthening testing infrastructure, Administrative set up,Trainings & publicity, etc.)

275

Total 33,375

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Annexure-5

Sectoral Overview

1. Computers and Peripherals Industry

(Source: Manufacturers’ Association for Information Technology (MAIT))

Background

The Computer and related peripherals market in India is growing at a rapid pace andfast assuming global scales. In 2010-11, 9.31 million computers (including Notebooks& Netbooks) were consumed in the country registering an annual growth of 16%, aphenomenon almost consistent all through Eleventh Five Year Plan. The sales ofdesktops stood at 6.03 million (60.3 lakh) units registering a growth of 9%. Notebooksand Netbooks taken together recorded a consumption of 3.28 million (33 lakh) units,growing 31% over 2009-10. Given the rise in disposable income and the stability ofjobs in the country, PC sales are expected to cross 12.60 million (126 lakh) units in FY2011-12, growing about 35%.

The growth in increased sales in computers can be attributed to significant consumptionin telecom, banking and financial sectors, IT and ITES, education, SOHO, retail and e-governance. The computer being the driver pulled the growth in all-round consumptionof peripherals and networking products as well. With sound macro-economic conditionsand signs of a robust growth in the domestic economy, the computer and relatedperipherals market is expected to grow at a comfortable pace of 25-30% for the nextfew years without any government intervention on the policies front. However, shouldthe Government policies be made conducive towards creating a favourable eco-systemfor IT manufacturing and consumption, the annual growth may well exceed 40-50% inthe ensuing years.

With consistent growth in consumption in computers and peripherals, and finally astreamlined duty structure on the excise front, confidence has now been restored in theIT manufacturing industry. Further, there is increased realization in the government thata robust hardware sector is not only essential for reasons of national security,maintaining the competence of the software industry without a strong hardware basewill also be a challenge.

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Computers and Peripherals market: 2009-10 & 2010-11

Total installs Total Revenue (in Rs. Crores)

ProductApril 09 –March 10

April 10 –March 11

%Growth

April 09-March 10

April 10-March 11

%Growth

ComputersDesktop PCs 5,525,992 6,030,418 9% 11,267 13,014 16%Notebooks 2,322,850 2,950,192 27% 8,868 9,440 6%Netbooks 185,714 334,324 80% 260 468 80%Servers 101,827 87,275 -14% 1,836 1,574 -14%

PrintersDot matrix 383,597 384,869 0% 257 258 0%Inkjet 1,142,131 1,355,504 19% 177 203 15%Laser 971,807 1,130,658 16% 660 734 11%Line 4640 4234 -9% 54 50 -7%

Other Peripherals

Key boards# 5,756,923 6,171,191 7%Monitors 5,754,111 6,163,108 7%UPS systems# 2,324,480 2,384,197 3%

Networking ProductsNetwork InterfaceCard# 3,454,721 4,440,666 29%

Hub# 161,602 155,899 -4%

Current Status including production and Exports

As manufacturers seek to reduce costs, there has been a marked shift in electronicsoutput worldwide, including that of computers and peripherals, from high cost to low-cost locations. Although Asia/Pacific-in particular, China has been the main beneficiary,Central and Eastern Europe, Mexico and Brazil have also benefited from significantinward investment. In the longer term, many of today’s low-cost locations will alsooffer significant market opportunities, creating the need for further investment in localmanufacturing. The opportunity is knocking at India’s door as well.

IT Products being manufactured in the country include personal computers, servers,workstations, supercomputers, data processing equipment, Dot-matrix printers,digitizers, networking products such as modems, hubs, etc., and add-on cards. Theproduction in the PC segment is dominated by i3 and i5 Processors. Other processorsare gradually entering the market reflecting, perhaps, the need for low-cost computingsolutions. The IT products manufacturing industry in India is essentially an importintensive one.

The industry has been essentially assembly oriented one with very low value addition.The impact of infrastructural related disabilities are significantly pronounced in thecomponent and the sub-assembly and component manufacturing industry, as a result ofwhich the component base in India is practically nonexistent.

Of the total Desktops market in the country, almost 85% are assembled locally. Allleading global brands including HP, Lenovo, Acer, Dell, etc., have an assembly unit inIndia, Multinational brands account for 35% of the PC market in India. Indian PC

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brands such as HCL, Zenith, Wipro, PCS etc account for 35% of the market. Thereduction in customs and excise tariff over the years has had an adverse impact on thegrey market, the proportion of which has steadily come down.

In the peripherals industry, a very high degree of value addition (to the tune of 65%) hasbeen achieved in the manufacturing of the Dot-matrix printers. TVS electronics andWeP Peripherals, the top two leaders in Dot-matrix printers manufacturing in Indiaaccount for close to seventy per cent of the Dot-matrix market. There is no indigenousmanufacturing of laser or inkjet printers in the country.

Computer Penetration

YearPC Penetrations in SEC A-C

Households (in %)2006-07 192007-08 302008-09 382009-10 412010-11 43

(Source: MAIT-IMRB)

Performance in the Eleventh Plan

The Eleventh five-year plan from 2007 onwards witnessed a significant growth in thecomputer consumption in the country, which grew from 6.34 million units in March2007 to 9.31 million units in March 2011. The computer penetration in the country hasalso witnessed a rapid growth, which stands at 40 per thousand in 2010-11.

2

Total PC (Desktops, Notebooks & Netbooks) sales: 2004-2011

• CAGR (2004-11): 16 %

• Growth over 2009-10: 16 %

U

nit

s

3,809,7245,046,558

6,341,4517,344,306

6,796,1078,034,556

9,314,934

0

2,000,000

4,000,000

6,000,000

8,000,000

10,000,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Technology Status

The Indian IT industry does not lag in technology in comparison to its globalcounterparts. Most products are launched simultaneously across the globe and so in theIndian market. However, very few companies spend resources in designing products forthe Indian market, while those who did take up the challenge have not been successfuldue to their inherent disabilities of scaling up and other deficiencies in the eco-system.The Governments in India both at the centre and state levels have made several effortsto reach the benefits of IT to the Indian populace beyond the urban areas by launchingseveral projects in regional language computing, however, very few have been

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successful. All this is in direct contrast to the fact that several MNCs have set up theirproduct design centres and technology labs in India to harness the inexpensive Indianengineering talent. Further, several Indian entrepreneurs as also Indian companies areengaged in product and technology development meant for exports purposes only.

The linkages between the Industry and the academia in India are poor and there is nomovement of personnel between the two thus limiting innovation and cross pollinationof ideas. Lastly all nations with advancement in IT have scaled heights owing to thecontribution of their governments in R&D and technology development. Government ofIndia’s spend in R&D in IT is insignificant and not readily extended to the privatesector.

Future Trends

The character of the IT industry is global and the industry in India also follows theglobal trends. With convergence of technologies, the distinction between technologies –IT, Consumer electronics and telecom is fast diminishing. Globally the consumption ofmobile PCs (notebooks) exceeds that desktops and India will certainly follow suit overthe next few years.

Tablet PCs since its launch in India in November 2010 are growing very fast, withmajor MNCs and domestic operators eyeing a share of the pie. Given the small formfactor and its utility, the tablets are going be the preferable choice among the end-usersover the coming years.

Further, with mobile industry is rolling out 3G, the mobile phone will become theaccess as well as the computing device. This will lead to a significant increase inpopulation with internet access and with a critical mass, several services could be rolledout increasing the value proposition of IT. The traditional definition of computing willthus undergo a change.

India will be the youngest nation in the world by 2025. A large population of peopleunder thirty will drive the consumption of IT products, the Indian market is thereforegoing to expand rapidly, the challenge will be how to tap our own ready market forpurposes of manufacturing in India rather than creating jobs in other economies bymeeting the demand through imports. Should measures be adopted to convert theopportunity into domestic IT manufacturing, India may well emerge as a strongmanufacturing country.

Thrust Areas: It is evident from the experience of the mobile industry in India that avibrant market attracts investments. The lowering of first the customs duty andsubsequently the excise duty has enabled the organised sector to offer mobile productsto the consumers at the same prices as that of the grey market. The grey market in themobile phones, once over 90% is now totally eradicated. With the consumptionattaining global scales, several global leaders and EMS companies are investing inmobile and related equipment manufacturing in the country. With convergence oftechnologies and with products mimicking each other’s functions, the basic buildingblocks for all IT, Telecom and consumer electronics products are also converging.While most investments in the manufacturing value chain are concentrated towardsassembly operations, the industry faces the challenge of deepening the manufacturingactivity as the component and sub-assembly base is non-existent. This would require

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significant focus from the government and the industry, as component manufacturing ishighly capital intensive.

Status of investments and investment needed to meet the targets

A poor investment climate, and a policy structure non-conducive to manufacturing,failed to attract any significant investments in IT manufacturing. However, with rapidgrowth in consumption in the domestic market in the last few years, especially that ofthe mobile phones, most of the top ten EMS players have set up their operations inIndia.

Therefore the thrust should be on the creation of a vibrant market through mission modeprojects that would enable investments and simultaneous rolling out of measures thatwill help deepen manufacturing by incentivising investments in high capital-intensivecomponents such as ICs, LCDs etc. and subassemblies. Attention will also be needed tostreamline procedures of exports, imports and also that of movement of goods withinthe country, as it is critical to achieve international levels of turnaround time. Delayslead to depreciation/loss in the value of goods, as the rate of obsolescence is very highin the IT industry. Further, thrust is also needed to create products specific to therequirements of the Indian market, suiting the Indian price points.

The core competence of EMS players is manufacturing and their investments inmanufacturing will not remain relegated to mobile products alone. They are activelylooking at diversifying their product profile as several of their international customerssuch as HP, Dell etc., have a strong market presence in India.

The hardware industry has the potential to create several employment opportunities forthe semi-skilled and the blue collared.The Computer and related peripherals market inIndia is growing at a rapid pace. The IT products manufacturing industry in India isessentially an import intensive one. With a non-conducive policy structure and severalinherent infrastructural disabilities, the industry has been essentially assembly orientedone with very low value addition. The disability factors are significantly pronounced inthe component and the sub-assembly and component manufacturing industry, as a resultof which the component base in India is practically non-existent. A rapidly growingmarket provides an opportunity to the IT industry to scale up their manufacturingoperations, however, the policy structure needs to be streamlined to uniform lowtaxation rates across the country. Being an industry operating in a zero duty regime,mitigation of disability factors such as high cost of capital, high rates of electricity, poorturnaround time are essential as these loom large when compared to our globalcompetitors. It is essential for the government to give thrust to domestic consumption sothat the market attains global volumes in consumption and enables industry to operate atglobal scales. Global scale of operation will lead to significant employmentopportunities, not only direct but also indirect including those in research and newproduct development. Issues of revenue loss to the Government due to changes in thetaxation structure are unfounded, as a vibrant industry and market will move that makeup for the revenue shortfall in the short run. The Twelfth Plan provides an excellentopportunity for the Government to enable the hardware manufacturing industry in Indiaand aim for a significant proportion of the global IT manufacturing industry.

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2. Consumer Electronics Industry

(Source: CEAMA)

Current Scenario

In the last decade, the Indian economy changed gears and went through a period of highGDP growth. This translated into larger surplus in the hands of the consumer, morechoices in the market, higher aspirations, more brands entering India and more moneygoing round in the system.

Television is the largest segment of consumer electronics. By the end of the XI FiveYear Plan, Television sales are expected to grow to 17.50 million units, a growth of 7%during the Plan period. CRT TV will have the largest market share of 13 million units,but the growth is almost flat over the five years. LCD Television is the emergingtechnology and is expected to grow to 4.50 million units in 2011-12, a growth rate ofmore than 80%, though on a small base to begin with. With the price of LCD TVsteadily going down, it is only a matter of time before it dominates the market.

Microwave Oven market is currently at 1.25 million units with a growth rate of 5.7%over the XI Five Year Plan period. The most popular is the convection technology,which has a 50% market share and has registered a robust growth of more than 19%during 2007-12.

DVD player market has been impacted by the rapid growth of the DTH industry. Thesuperior audio and video delivery of DTH viewing vis-a-vis cable, Movie-on-Demandoption, carriage of a large number of channels etc. has made in-roads in the DVD playermarket. Sales of DVD players have progressively declined from 7.45 million units in2007-08 to 5 million units in 2011-12, a de-growth of 9.50%.

Home Theatre sales have grown by more than 18% from 1.80 lakh units at thebeginning of XI Five Year Plan to 3.5 lakh units at the end of the plan.

With the rapid growth of the DTH industry, market for set top box has grown rapidly inthe last few years to 11 million units of domestic consumption. Imposition of 5%customs duty on imports in July 2009 has given a boost to domestic production.Competition from cheap Chinese STBs is a major constraint for the domestic units andthe market is split 70:30, in favour of imports.

Technology Status

Technological obsolescence is very rapid in the television industry. CRT television hasdisappeared from the developed markets. In India, LCD, Plasma, 3D, HD have maderapid strides. On the world stage, LCD technology will play the dominant role and willhave 90% of the market share in terms of both units and revenue. Within the LCDtechnology, while currently LED and CCFL have equal share, but going forward LEDwill capture 90% of the market. The share of plasma display will gradually decline,while CRT televisions will be wiped out.

Among emerging technologies, Organic Light-Emitting Diodes (OLED) will find anapplication in television sets. Currently, OLED technology is used in small screendevices like cell phones and digital cameras.

144

Another interesting phenomenon is that over the years, the average size of the televisionscreen is increasing. From 24” in 2004, it is expected to go up to 35” in 2014.Televisions with a screen size in the range of 30” - 39” will have the largest marketshare of 43% in 2014.

WORLD SCENARIO – TV UNITS

CRT LCD PDP OLED RPTV

CAGR -52.10% 15.17% 1.06% 0% 0%

Source : Display Search* Forecast

WORLD SCENARIO – TV SCREEN SIZE

Source : Display Search

Average Size 24.2 24.4 25.6 27.4 29.1 30.9 32.4 33.5 34.1 34.5 34.7(In Inches)

* Forecast

Future Trends

The total number of television households in India is expected to increase from 130million in 2010 to 168 million by 2015. The penetration in India in terms of television

145

household still remains low at around 62% as compared to the developed countrieswhere the penetration is around 90% or more.

The government has mandated a complete switchover from analog to digital cable in aphased manner with a sunset date of December 31, 2014. Digitisation will see a surge indemand for Set Top Box (STB) over the next few years. For digitisation to succeed, theinterest of all stakeholders will have to be reconciled. A similar move to implementCAS in 2003 was subsequently scaled down. Further, DTH will be a major growthdriver for the Set Top Box industry.

The threat of cheap STB imports is a major impediment in the growth of the domesticmanufacturing of STB’s. Consistent policy of import duty on STB’s is essential foradditional investment in capacity build-up and utilisation of existing manufacturingcapacity in the country.

Item-wise sales trend during XI Plan sales targets during XII Plan are depicted below:

TELEVISION – SALES TREND

CRT LCD PLASMA TOTAL

CAGR 0.15% 82.01% 4.66% 7.03%

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TELEVISION – SALES TARGET

CRT LCD TOTAL

CAGR -15.14% 39.98% 13.38%

MICROWAVE– SALES TREND

SOLO GRILL CONVECTION TOTAL

CAGR 2.41% -6.6% 19.36% 5.74%

147

MICROWAVE – SALES TARGET

TOTAL

CAGR 6.33%

DVD– SALES TREND

DVD

CAGR -9.49%

InM

illio

nN

os.

148

DVD – SALES TARGET

TOTAL

CAGR -18.35%

HOME THEATER – SALES TREND

Home Theater

CAGR 18.09%

InTh

ou

san

dN

os.

149

HOME THEATER – SALES TARGET

TOTAL

CAGR 12.91%

SET TOP BOXES – SALES TREND

Production-Domestic Market

Production-ExportMarket

Import Set Top Box

CAGR 29.36% 15.18% 28.51% 25.92%

150

SET TOP BOXES – SALES TARGET

Set Top Box

CAGR 6.4%

Thrust AreaGrowth segments during the XII Five Year Plan period will be the Television and SetTop Box industry. LCD TV is projected to grow at a CAGR of 40% for 5 years. Theexpected exponential growth in Set Top Box is linked to the successful implementationof digitisation in the country. Nevertheless, the rapid increase in DTH subscribers willstill support robust growth in the requirement of STB’s. At its current growth rate, theIndian DTH market is likely to overtake the US in terms of subscribers by 2012.

3. Electronics Components Industry

(Source: Electronic Industries Association of India (ELCINA))One of the key segments driving the investments is the technology segment. A strongelectronic components manufacturing sector is vital for a successful and vibrantElectronics Manufacturing industry. It is envisaged by several experts that thedevelopment of component manufacturing capability in the country could catapult Indiainto the league of large technology manufacturing countries and thereby, increase theinvestments from large OEMs.

The total market for electronic components in India for FY 2009-10 is estimated at USD9.2 Billion. The market has witnessed a growth of 11% CAGR over the last 3 years andis expected to witness a growth of about 15% year-on-year over the next two years. It isexpected to be around USD 12.1 Billion by FY 2011-12 with a CAGR of 12% over the5 year period. This growth is largely expected to be driven by the growth intelecommunication, consumer durable and automotive sector.

However, the contribution of Indian manufacturing to the total available Indianelectronics market is only to an extent of 39%. A large proportion of the demand is metthrough imports from countries like China, Taiwan, South Korea, Japan, and Europe.The contribution of imports is significantly higher at over 60% in more specialized andhi-tech components like ICs, Discrete Semiconductors, PCBs, LEDs, and Chip

151

Components. If we consider the Total Market vis-à-vis the Total Available Market,then the share of imported components would be even higher at close to 80%.

At the same time, India has established a higher degree of self reliance in severalcomponents. This includes components like cables (with only 20% being imported andexpected to reduce to 15%), Speakers (with only 20% being imported), Connectors,CRTs, etc. In case of many of these components, Indian manufacturers are alsoexporting to several countries in Europe, Americas, Middle East etc.

The component industry is generally classified into active, passive, electro-mechanicaland associate components. The figure below provides a breakup of the industry basedon the classification of the components.

Active Components - include components like Integrated circuits, CRT, LED, Diodeand Transistor. Of these, IntegratedCircuits (ICs) have the largest shareof about 52%.The demand for active componentsis estimated at USD 2.2 Billion inFY 2009-10 and is expected togrowth at 9-10% year-on-year. Thegrowth in the Active componentsegment is expected to be largelydriven by LED & IntegratedCircuits with digitization beingintroduced in most products.Passive Components: - Resistors,Capacitor, Piezo-electric Crystals and Crystal oscillators are some of the widely usedPassive components. Wound components contribute about 80% of the total passivecomponents market of India followed by PCBs.The market for Passive component in India is estimated at USD 1.88 Billion in FY2009-10. The market is expected to grow at around 13% year-on-year. This growth islargely expected to driven by wound Components, resistors and Capacitors.Unlike the active components, the share of indigenous production for woundcomponents is relatively higher, with close to 80% being largely produced in India.However, there are a few components like resistor, Capacitor, etc. which continues to belargely imported.

Figure - Classification of Electronic Component Market

Figure : Market Share - Active Components

IC

52%

CRT

36%

Diode

5%

Transistor

4 %

LED3%

Rectifier

0%

Figure : Market Share - Passive Components

Wound

Components

80%

Capacitor

9%

Resistor

5%

Piezo

electricCrystal

3%

Crystalsos cillators

3%

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Electro-MechanicalComponents: PCB, Switches,cables, Speakers, fuses and relaysare some of the widely usedElectro-mechanical Components.Connectors and PCB contribute toabout 50% of the total electro-mechanical components markets ofIndia followed by speakers, cablesand switches.The market for Electro-mechanicalcomponent in India is estimated atUSD 2.46 Billion in FY 2009-10. The market is expected to grow at around 10-12%year-on-year. This growth is largely expected to driven by PCB, Connectors andSwitches.Unlike the active & passive components, the share of indigenous production for a fewelectro-mechanical components like cables, speakers and switches is relatively higher.

Associate Components: These components largely function as aids in electronicequipment and sometimes even forelectronics components. These arelargely used in conjunction with activecomponents and passive components inelectronic circuits. Optical Disc,Magnets, RF Tuners, Heat Sinks,Magnetron, Magnetic Tapes are someof the main associate components.Optical Disc is one of the largestcontributor to this categorycontributing about 15% to the total.The demand for associate componentsis estimated at USD 2.66 Billion in FY2009-10. This is expected to grow by 16%.

Production of Electronics Components - Imports vs. Indigenous

The Indian electronic component market continues to be largely dependent on importswhich have about 61% of the share. Majority of these imports are from East and SouthAsian countries like Taiwan, Korea, Malaysia and China. Despite the increase in theproduction, the country continues to be dependent on imports for meeting the domesticneeds for electronic components because of the rapid increase in the consumption ofelectronic products.

In addition, most manufacturers attribute this huge demand–supply gap to the lack of asupportive ecosystem in the country for indigenous manufacturing. This includes lack ofadequate infrastructure, taxation issues, cost disabilities including high energy andfinance costs which all add up to a 8-12% cost disadvantage against our morecompetitive neighbours in Asia. The figure below indicates that the gap is expected toincrease further in the next couple of years.

Others72%

Optical disc16%

Magnets4%

RF tuners4%

Heat sinks2%

Magnetron2%

Magnetictapes

0%

PCB25%

Connector

25%

Speakers

17%

Switch

15% Cables

15%

Relays

1%

Micro/

Stepper

motors1%

Fuse1%

Figure: Market Share - Associate Components

Figure : Market Share - Electro-mechanical Components

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Over the years, both the government and the manufacturers have realized the potentialthat the country offers and are increasinglyfocusing on promoting indigenousmanufacturing in India.This has led to increase in the production inmany components and exports have increasedfor certain components. The markets includeMiddle Eastern countries, Europe and Africa.However, the export is restricted to a fewcomponents like Optical disc, and electro-mechanical components such as connectors,cables, switches and PCB.

The export market was estimated at USD 1.14 Billion for the financial year FY 2009-10. Most industry experts believe that the export market is expected to increase in thenext few years with most leading manufacturers in the process of obtaining internationalcertifications for the products manufactured.

5. Telecom Sector

(Source: Department of Telecommunications (DOT), Telecom Regulatory Authority ofIndia (TRAI), Planning Commission)

The Indian Telecom revolution is recognized as an international success story. With anoverall subscriber base of 886 million and a teledensity of 73.95, the sector continues togrow from strength to strength. With the urban teledensity reaching more than 150, themarket has been showing signs of maturity. Rural India is the key target market likely todrive the next round of growth, particularly for voice based services. Roll out of 3G andBWA networks is expected to reinvigorate the saturating urban markets and help inbridging digital divide. The impressive growth observed by mobile services needs to bereplicated in case of broadband service, where the subscriber base currently stands justat about 12 million against target of 20 million.

The 11th plan had envisaged target to reach 600 million connections by March 2012.However, during 2007-11 itself, the total telephone connections increased by 640.46

Figure: Market Value - Imports Vs. Indigenous

Connector, 9%

PCB, 5%

Cables, 3%

Switch, 7%

OpticalDisc, 73%

Others, 4%

Figure: Market Share - Exports

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million. The wireless connections have grown from 165.09 million as on 31.3.2007 to851.70 million as on 30.6.2011. Overall teledensity reached to 73.97 as on 30.06.2011where as rural teledensity has surpassed the target of 25 of Eleventh plan and now standat 35.64.

Thus, the major objectives envisaged in the Eleventh plan have been achieved well inadvance. Affordable and effective communication services could be offered as tariffdeclined substantially due to intense competition among the operators. Government hastaken several steps to encourage the participation of private players to createcompetitive environment in telecom sector.

Growth of Telephone Connections

The number of wireline connections decreased from 40.77 million (at the beginning of11th Plan) to 34.29 million in 2011-12 (as on 30.06.2011). However, the total telephonesubscribers during the same period increased from 205.87 million (as on 30.06.2011) to886 million. The tele-density increased from 18.22 (as on 31.3.2007) to 73.97 (as on30.06.2011)

Investments during 11th Plan

The total estimated investments by the public sector and private sector operators during theEleventh Plan (2007-2012) in telecom sector is Rs.3,98,700 crore.

Telecom equipment Manufacturing, R&D, Product Standards and IPR

Telecommunication infrastructure is a critical-asset of any country and it is a keygrowth enabler. Telecom networks are mission-critical elements for secure and timelycommunications. It is the delivery vehicle for a large number of IT and IT-enabledservices including health-care, education, financial services, e-governance etc. both tothe urban as well as rural masses. While telecommunication networks could be set-upwith imported equipment, it becomes a concern when a large network, such as that ofIndia, require continuous large imports, draining the foreign exchange of the country.Besides, a telecom network today is vulnerable to security and espionage threat,compromising the security and independence of a nation. Complete dependence onimported equipment, in which malware could have been designed in and implanted atthe component (IC) level or at the level of hardware or at the level of BIOS (Basic InputOutput System) or Operating System or at the application level, makes the nation highlyvulnerable. The issue of security can be dealt comprehensively only when we havesound manufacturing base, higher order skills in telecom technologies and skills to dealwith security related issues, which can be developed only when we start doing R&D,design and development including manufacturing of the equipment indigenously.

On the other hand, the design, development and manufacturing of its own telecomequipment is a big opportunity for India, creating huge value as well as largeemployment, and it is not that India does not have an option; it certainly has the designcapabilities, as reflected in large amount of telecom design and development work thatis carried out in India for multinational companies. With the right policies to promoteR&D, IPR creation and manufacturing, India can certainly deliver. According to TRAI,the demand for telecom equipment in India was Rs.54,765 crore (US$12 billion) in2009-10 which was about 5.5% of the global demand. This is projected to grow toRs.96,514 crore (US$ 21 billion) in 2015 and Rs.170,091 crore (US$ 37 billion) in2020. This large domestic demand may be a perfect launch pad for Indian Product

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industry. A thriving telecom manufacturing industry would have a large positive impacton many other elements of the electronics manufacturing value chain. This will alsoprovide employment, increased share of manufacturing in GDP and export of equipmentand services. Moreover, technical knowledge and IPR creation will also have spillovereffects for other industries. India has missed having stake in technology standardization,development and commercialization so far and a couple of more years of apathy couldseal the fate of telecom manufacturing in the country forever.

Further, the scenario for telecom equipment design and manufacturing has been fastchanging. The Western companies, which did well in the past, are contracting, withmany of them going out of business. Very few have survived. The void has been filledby the Chinese companies, which have emerged on the scene only in the last ten years,and have already acquired leadership in telecom equipment manufacturing. If India doesnot strengthen its own telecom product industry, it will increasingly depend onimporting equipment from one country. It is imperative that India moves rapidly innurturing and strengthening its telecom R&D, IPR creation and product industry.Despite significant growth of the telecom network and the subscriber base over the lastdecade, the telecom manufacturing sector has not shown corresponding increase. Thecontribution of all domestic products have been 12-13% in the year 2009-10 whileIndian Products could meet just 3% of the Indian demand. It is quite clear that thetelecom equipment manufacturing ecosystem has so far failed to adequately spur themanufacturing segment and as a result, the domestic telecom equipment manufacturingsegment has not been able to meet the demand forcing the telecom operators to importmost of the equipment required for their network.

There are reasons for the Indian manufacturing Industry not being able to meet thedemand through domestic equipment manufacture. It includes weak links in thecomplete chain from basic research to IPR generation, product design and development,product commercialization and achieving economies of scales so that the product cancompete with the imported one. Manufacturing needs support of other components ofthe value chain to flourish. Manufacture of components and sub-assemblies in Indiawould help both the Indian Product companies and Indian manufactured productcompanies. Large global EMS vendors need to be encouraged to set-up competitivelarge scale operations in India. This would not only reduce the input cost but also enablethe same infrastructure to be used across the entire electronics sector. It is veryimportant to have a tax structure that encourages manufacturing. Today, import of somecomponents invites custom duty whereas the finished products attract zero duty. Smallerdomestic players face the problem of not having economies of scale and availability oflong term financing at low interest rates. R&D facilities, access to low cost funds andtesting and certification are other areas which need to be strengthened to make themanufacturing environment more conducive. Several measures need to be taken toincrease domestic production and enhance the value addition to the products beingmanufactured in the country. A robust telecom network needs a strong telecommanufacturing base which will in turn contribute handsomely to the GDP andemployment in the country. There is, therefore, need for a comprehensive TelecomEquipment Manufacturing Policy that would give the country a definite direction andfacilitate it becoming a strong telecom manufacturing hub. We have not been able toleverage our market for spurring manufacturing till date.

Planning Commission has proposed that the strategic objectives for the manufacturingsector in the next 15 years should be to bring about a quantitative and qualitative changevia a set of policy choices with following core objectives:

156

i) Increasing the growth of manufacturing sector to 12-14% over medium term so as tocontribute at least 25% to the National GDP by 2025;

ii) Increasing the rate of job creation in manufacturing to create 100 million additionaljobs by 2025;

iii) Increasing domestic value addition;

iv) Enhance global competitiveness of Indian manufacturing through appropriate policysupport;

v) Ensure sustainability of growth, particularly with regard to environment.

A strategic sector like telecom should give a befitting contribution to this target. Withthe expansion of the manufacturing base, development of ancillaries, support facilitieslike electronic design and manufacturing clusters, there would be employment forhundreds of thousands of skilled, semi-skilled and unskilled workers. SimilarlyDepartment of Industrial Policy and Promotion (DIPP) is in the process of framing aNational Manufacturing Policy (NMP) in which it has been envisaged to create NationalInvestment and Manufacturing Zones (NIMZs) which will be developed as integratedindustrial township with the state-of-the-art infrastructure and favorable export-importpolicies. These Zones can play the role of a facilitator for the entrepreneurs who want toset up their business in the Telecom Sector. India has the capability to create globaltelecom product companies of its own if it can tap the next wave of telecom growth thatwould happen in the areas of broadband, Next Generation Networks and NextGeneration Mobile Networks. Market Preference for domestically designed andproduced telecom goods is being used today by most large nations, where the localindustry is weak. The value lies in design, development, IPR and in system software.Without strengthening these aspects, India’s gains will be limited.

6. Mobile Handsets(Source: Indian Cellular Association (ICA))

Market Estimates (11th Five Year Plan)

INDIAN MARKET ESTIMATES 2007 2008 2009 2010 2011 (E)

Volume In Millions 90 110 130 150 165

Value In Crores 26,000 26,500 30,100 34,500 37,600

Total Volume (In Millions) 2007-2011 645

Total Value (In Crores) 2007-2011 154,700

(E): Estimated

Market Estimates (10th Five Year Plan)The Market performance during the 11th Five Year Plan was significantly higher ascompared to the 10th Five Year Plan. Indian market performance during the 10th FiveYear was as under:

INDIAN MARKET ESTIMATES 2002 2003 2004 2005 2006

Volume In Millions 7 15 20 40 65

Value In Crores 4,200 8,900 10,150 15,350 19,500

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Total Volume (In Millions) 2002-2006 147

Total Value (In Crores) 2002-2006 58,100

Market Estimates (12th Five Year Plan)For the 12th Five Year Plan ICA expects a robust growth trajectory for the Industry, asper following projections:

INDIAN MARKET ESTIMATES 2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E)

Volume In Millions 180 200 220 240 265

Value In Crores 43,200 50,500 58,100 66,800 72,800

Total Volume (In Millions) 2012-2016 1105

Total Value (In Crores) 2012-2016 291,400

ProductionRegarding Production in the sector, the production was limited to only 32 Millionduring the 10th Five Year Plan, for which figures are given in the following Table(Manufacturing facilities started being set up in the last year of the 10th Five Year Plan)

PRODUCTION IN INDIA 2002 2003 2004 2005 2006

Volume In Millions NIL NIL 0.5 1 30

Value In Crores NIL NIL 200 400 6,500

Total Volume (In Millions) 2002-2006 31.5Total Value (In Crores) 2002-2006 7100

In the 11th Five Year Plan, there was a massive growth in Manufacturing, as under:

PRODUCTION IN INDIA 2007 2008 2009 2010 2011 (E)

Volume In Millions 45 120 135 140 150

Value In Crores 8,500 20,000 22,500 24,000 27,000

Total Volume (In Millions) 2007-2011 590Total Value (In Crores) 2007-2011 102,000

In the 12th Five Year Plan, ICA estimates that in a positive scenario manufacturing cancontinue to grow. ICA’s estimates for production for the 12th Five Year Plan are asunder:

PRODUCTION IN INDIA 2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E)

Volume In Millions 180 250 295 339 372

Value In Crores 35,100 48,750 60,950 73,100 80,450

Total Volume (In Millions) 2012-2016 1436

Total Value (In Crores) 2012-2016 298,350

However, the threat from unbranded Chinese phones is very severe for domesticmanufacturing.

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ExportExport was insignificant during the 10th Five Year Plan. Export started happeningduring the year 2006 (the last year of the 10th Five Year Plan):EXPORT FROM INDIA 2002 2003 2004 2005 2006

Volume In Millions NIL NIL NIL NIL 5

Value In Crores NIL NIL NIL NIL 1,450

Total Volume (In Millions) 2002-2006 5Total Value (In Crores) 2002-2006 1450

During the 11th Five Year Plan, exports grew substantially, as given below:

EXPORT FROM INDIA 2007 2008 2009 2010 2011 (E)

Volume In Millions 10 55 70 80 85

Value In Crores 2,400 11,500 12,500 15,300 14,850

Total Volume (In Millions) 2007-2011 300

Total Value (In Crores) 2007-2011 56,550

For the 12th Five Year Plan, ICA’s estimates for exports are as under:

EXPORT FROM INDIA 2012 (E) 2013 (E) 2014 (E) 2015 (E) 2016 (E)

Volume In Millions 100 150 180 220 240

Value In Crores 19,000 30,750 36,900 44,300 48,700

Total Volume (In Millions) 2012-2016 890Total Value (In Crores) 2012-2016 179,650

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7. Semiconductor Industry(Source: India Semiconductor Association (ISA))The first ISA-F&S report was released in 2006. The fourth update of ISA-F&S Report2010 - 2012 provides market estimation and forecasts for different semiconductorproduct markets in India till 2012.The application segments studied include:• Mobile devices• Telecommunications• Information Technology & Office Automation (IT&OA)• Consumer electronics• Industrial electronics• Automotive electronics and• Others (aerospace, defense, medical electronics and smart cards).

Chart 1: Total Indian semiconductor market: TM, TAM revenue forecasts, 2009 - 2012

DefinitionsThe TM volume for a particular end use product (say handsets) represents the total salesunits for a specific year. In other words TM represents the total local consumption of asaid product in that year. It therefore includes imports; basically volume of local salesirrespective of whether it was manufactured in India or not.

TAM volume for an end use product (say handsets), on the other hand, represents thetotal number of units manufactured and/or assembled in the country in the study year. Inother words, TAM represents the locally manufactured (includes EMS activity) +locally assembled Completely Knocked Down (CKD) units and therefore will includeeven export units manufactured in the country.

This TM and TAM volume for a particular end use product (say handsets) are thenmultiplied with the electronic Bill of Materials (eBoM) (semi eBoM per handset) toarrive at the semiconductor TM and TAM revenues for that product (handsets).

The key findings:• The Indian semiconductor market grew by a phenomenal 28.3 percent in 2010;

global semiconductor market’s cyclical trends had minimal impact in India.• Mobile devices, telecommunication and IT&OA contributed 82 percent to

semiconductor TM in 2010.• Local manufacturing of telecom equipment by Original Equipment

Manufacturers (OEMs) and Electronic Manufacturing Services (EMS)

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companies to propel related semiconductor consumption by a massive 50percent during 2010 to 2012.

• Influenced by regulatory norms and sharpening competition, the automotivesegment to account for the highest growth in semiconductor demand at 31percent from 2010 to 2012.

• Sustained gulf between semiconductor Total Market (TM) and Total AvailableMarket (TAM) from 2010-2012 highlight the urgency to promote localmanufacturing to drive higher growth in TAM.

As per the ISA-DIT-E&Y Report 2011, the Indian semiconductor design industry,consisting of Very Large-Scale Integrated (VLSI) design, embedded softwaredevelopment and hardware/board design, was estimated at USD 7.5 billion in 2010. By2012, it will reach USD 10.6 billion. Of that, embedded software development willconstitute USD 8.6 billion, board design USD 0.7 billion and VLSI design USD 1.3billion. In 2010, the Indian design industry employed 160,000 people. It is slated togrow to 234,000 by 2012. The key challenges constraining the growth of the Indiansemiconductor design industry as per this report are talent availability, lack of startupecosystem and competition from Asian countries.

Chart 2: Semiconductor design industry in India, 2009 - 2012

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Table 1: Revenue and workforce of semiconductor design industry in India, 2010 and 2012

Segment2010 2012

Revenue(USD mill.)

Workforce Revenue(USD mill.)

Workforce

VLSI design 944 17200 1333 25200% share 12.6 10.8 12.6 10.8Revenue CAGR (2009-2012): 17.3%Workforce CAGR (2009-2012): 20%Hardware/Board 476 11600 672 17000% share 6.4 7.3 6.4 7.3Revenue CAGR (2009-2012): 17.3%Workforce CAGR (2009-2012): 20%Embedded Software 6076 131000 8579 192000% share 81 81.9 81 81.9Revenue CAGR (2009-2012): 17.3%Workforce CAGR (2009-2012): 20%

TOTAL 7496 159800 10584 234200Source: ISA-DIT-EY report, 2011CAGR: Compounded Annual Growth Rate

Growth drivers India talent scenario: Presence of abundant talent continues to play a major

role in India’s positioning in worldwide semiconductor design, which employedworkforce strength of 1, 60,000 in 2010. It has the presence of a young industryworkforce with close to 78% of the workforce consisting of B.Tech graduatesand close to 60% with less than eight years of work experience.

VLSI design: Almost 50% of the work done in VLSI design is in the gate rangeof 1M – 10M range and more than 50% of work is done in the digital designsegment but mixed signal design work is also rapidly increasing. In terms ofdesign, Intellectual Property (IP) development and module design & verificationgarner the major share of projects. The main growth drivers are:

- Increasing maturity of Indian design ecosystem- Rising global demand for electronics products

Embedded software design: The embedded software industry contributes closeto 80% of the Indian semiconductor industry revenues with the key consumingverticals being the telecom/networking products and consumer electronicsproducts. Factors which provide an impetus to this segment are:- Product customization due to localization & legislative requirements- Lower entry barriers- Adaption to open-source platforms-

Hardware/Board design: The hardware/board segment is the smallestcontributor to the semiconductor design industry in India. More than 50% of thework is done on the sub-10 layers range. Factors which aid in growth of thissegment are:- Increased outsourcing by service providers- Re-engineering opportunities- Captives partnering third-party service providers bringing in increased

business

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With all the top 10 global fabless companies and the top 25 semiconductor companiespresent in India, the ecosystem is gradually orienting towards product/ designinnovation. Both the captives and non-captives are gradually orienting themselvestowards executing projects of higher strategic value (towards spec-to-tape out/ productownership). By 2005, a large number of global semiconductor companies had setupdesign captive units in India.

Key drivers for global semiconductor companies turn to India for growth:1. Globally, India is one of the fastest growing electronics product market; with

semiconductor TM reaching USD 9.86 billion in 2012 with a CAGR of 22.7%(ISA-F&S, 2010-2012).

2. With the large middle class population having purchasing power, the domesticmarket is estimated to be USD 400 billion by 2020. This makes India a keyfocus market for semiconductor companies.

3. India as a hub for embedded design is evidenced by:- Several global electronic product companies in telecom / IT / automotive/

industrial domain setting up large Design Centers in India- Indian design services companies developing electronic products for global

customers from India and- Local companies developing electronic products for Indian market as well as

for exports- Major embedded designs and socket/ architecture decisions are happening in

India which has an impact on global revenues of the semiconductor industry.

4. Proactive Government policies to support local electronic product manufacturingas well as attracting semiconductor manufacturing to India.

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e-Industry : IT-ITeS Industry

Background

1.1 Introduction

India is fundamentally advantaged and uniquely positioned to sustain its globalleadership position, grow its offshore IT-ITES industries at an annual rate of 13-14 percent, sustain nearly 10 million direct jobs, and generate export revenues of about USD175 billion by 2020. This represents an opportunity, capable of catapulting us into ahigh growth orbit. The transformational impact that this industry can achieve has thepotential for India to not only sustain global leadership, but also build a truly inclusivegrowth environment in the country.

The domestic IT-ITES industry in India is at an inflection point today. As Indianconsumers and corporations rapidly adopt mobile phones, and Internet access andbroadband connectivity expand, there is likely to be a significant increase in spend onIT hardware, software and services. Finally, the biggest domestic opportunity in mostsectors (e.g., banking, insurance, retail, telecom and healthcare) lies in tapping theopportunity to serve the billions of underserved at the bottom of the pyramid.

The other big positive is that our knowledge sector is largely driven by youth—theaverage age of employees in the industry is between 25 and 28. The basis of the“demographic dividend” is that in 2020, the average age in India will be only 29 years,compared with 37 in China and the United States, 45 in western Europe, and 48 inJapan. Moreover, 70 percent of Indians will be of working age in 2025, up from 61percent now. According to the Indian Labour Report, 300 million youth would enter thelabour force by 2025, and 25 per cent of the world's workers in the next three yearswould be Indians. This demographic advantage—will become a bigger edge for thecountry. The global demographic composition is increasingly getting skewed towards afew countries having a large working age population and the developed countrieshaving a deficit. The young people need to be properly educated to fully contribute tothe growing economy. India’s young demographic profile, where over 3.5 milliongraduates and postgraduates including over 500,000 IT & Electronics &Communication Engineering graduates are added annually to the talent base, willcontinue to give us an unassailable edge. Today, no other country offers a similar mixand scale of human resources. There is no denying that there are gaps in talentsuitability. The lack of suitability poses challenge and the same needs to be proactivelyaddressed.

On the plus side, the Indian IT-ITES industry has also moved up the value chainof global perception. India is a global partner delivering several mission critical servicesto clients globally. Today, Indian companies are stepping out of India and are goingglobal. Indian companies have set up delivery centres across the world and are actuallyproviding services from different regions. Around 340 delivery centres in 184 citiesacross 48 countries in 2007 have now increased to over 500 centres across 60 countries,and 200 cities.

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IT-ITeS/BPO industry provides employment to people with various skill levels i.e.Engineers, Lawyers, Arts/Science/Commerce/ Literature etc. graduates; High SchoolPass outs etc. This sector is the largest employment provider of women and has about30% of its workforce comprising women. In the ITeS/ BPO segment, womenemployment is about 40%.

The IT-ITeS industry has become one of the most significant growth catalysts forthe Indian economy. In addition to fueling the economy, the industry is also positivelyinfluencing the lives of its people through an active direct and indirect contribution tothe various socio-economic parameters such as employment, standard of living anddiversity, among others.

1.2 Indian IT-ITES Industry Performance

The Indian Information Technology - Information Technology Enabled Services(IT-ITES) industry has continued to perform its role as the consistent growth driver forthe economy. It has built the global brand for India as a knowledge economy. Globalleaders, media and analysts have recognised the potential for India through the brandbuilt by this sector. IT enabled solutions have helped government and industry enhancegovernance and efficiency.

Government of India has played a key role in supporting development of thissector. From providing tax incentives under Section 10A/10B, setting up STPI, creatingcapacity and competition for telecom services, zero import duty on software are some ofthe steps taken for this industry to develop as the leading global sourcing hub of theworld.

While the sector has maintained a CAGR of over 30 percent in the tenth plan, theIT-ITeS industry has continued to sustain growth rate in the Eleventh Plan despite theglobal economic downturn, which has impacted the growth trajectory of the industry, tosingle digits in FY 2009-10. With worldwide technology spending decliningsignificantly in 2009, and being an export led sector with a key thrust on banking andfinancial services, there was single digit growth in exports revenues. Along with thedecline in global demand, many other low-cost countries are building a significant valueproposition to challenge India’s leadership position aided by enabling investmentpolicies.

The industry in this phase (2008-2010) has demonstrated maturity by reducingcosts, focusing on new markets, investing in sales and development, domain expertise,enhancing operational excellence and thrust on customer centricity. However, there hasbeen a marked improvement in FY2010-11, with reduction in recessive conditions,enabling the return of double digit growth for the industry However, all the stakeholders viz, Industry, Industry Associations, Central/State Government would berequired to work together to address the emerging challenges to sustain the growth rateby retaining the competitiveness and build for the next wave of growth.

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Table - 1 : Performance of the industry during the Eleventh Five Year plan

US $ Bn FY07 FY08 FY09 FY10 FY11(E) FY12(P) CAGR

Exports31.2 40.4 47.1 49.7 59.0 69 17.0%

Domestic 8.2 11.7 12.8 14.2 17.2 20.0 19.5%

Total 39.40 52.10 59.9 63.9 76.2 89.0 17.7%

Source: NASSCOM

1.2.1 IT-ITeS ExportsThe exports revenue of Indian IT-ITeS industry has grown from US $ 40.4 billion(

Rs. 164400 crore) in 2007-08 to US $ 59 billion (Rs. 269630 crore) in 2010-11 and areprojected to reach $ 69 billion by 2011-12 with CAGR of 17% in dollar terms. Inview of the severe global economic recession in the developed markets, which accountfor almost 90% of India’s IT-ITeS exports, the exports growth rate during the year2008-09 declined to single digit (5.5%).

The export industry is diversified across three major focus segments – IT Services,BPO and engineering services. While IT Services have been the mainstay of theindustry, BPO and engineering services sector has built upon the India value propositionand today there exist integrated service providers across the three focus areas as well asniche providers.

Table - 2 : Segment-wise IT-ITeS Exports in XI Plan

US$ BnSERVICE LINES 2007-08 2008-09 2009-10 2010-11

(E)2011-12

(P)IT Services 22.2 25.8 27.3 33.5 -

BPO 9.9 11.7 12.4 14.1 -Softwareproducts/engineering

8.3 9.6 10.0 11.4 -

Total 40.4 47.1 49.7 59.0 69 (P)Source : NASSCOM

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1.2.2 IT-ITeS Domestic Market

The domestic revenue of IT-ITeS industry has increased from US $ 11.7 billion(Rs.47000 crores) in the year 2007-08 to US $ 17.2 billion (Rs.78700 crores) in 2010-11and is projected to reach US $ 20 billion (Rs.90000 crores) by 2011-12 with estimatedCAGR of 19.5% in dollar terms. Thus, the growth rate of domestic IT-ITeS revenue hasoutpaced the growth rate of IT-ITeS exports from the country.

The Government is expected to contribute significantly to this growth throughspending for the National e-governance Plan (NeGP). Leading Indian firms,multinationals as well as the SMEs are gearing their products and services to tap intothe e-governance opportunity.

Table - 3 : Segment wise domestic IT-ITES revenue in XI PlanINR Bn

SERVICE LINES 2007-08 2008-09 2009-10 2010-11(E)

2011-12(P)

IT Services 318 378 429 501 574BPO 64 89 109 127 145Software products/ engineering 88 123 140 159 184Total 470 590 678 787 900 (P)

Source : DIT Annual Report and NASSCOM

1.2.3 Employment generatedDirect employment in the IT services and ITeS/BPO segment touched 2.54 million

by the end of FY2010-11, and is expected to reach 2.8 million by the end of the currentfive year plan. This also translates to the creation of about 8.7 million indirect jobopportunities attributed to the growth of this sector in diverse fields such as commercialand residential real estate, retail, hospitality and transportation, etc. Direct employmentgeneration by the IT-ITES sector during the Eleventh Plan is given below:

(In Million numbers)2007-08 2008-09 2009-10 2010-11 2011-12(P)

Direct Employment 1.96 2.20 2.29 2.54 2.80

318 381429 501

6487

109

127145

88

101

140

159

184

0

300

600

900

2007-08 2008-09 2009-10 2010-11(E) 2011-12(P)

IT-ITeS Domestic Revenue

Software products/ engineering

BPO

IT Services

INR Bn

470569

678

787900(P)

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2.0 Objectives, Targets and Achievements of Eleventh Five Year Plan2.1 The main objective of Eleventh Five Year Plan was to evolve strategies to become

world leaders in development of IT software and services including ITES. Indiacontinues to be a premier destination for the global off-shoring market of IT-ITeS,accounting for almost 55% in 2010 as compared to 49% in 2005. India hasemerged a dominant player in global IT services outsourcing with increase inIndia’s share to 70% in 2010 from 52% in 2005. Although India’s share in BPOsourcing market has declined from 45% in 2005 to 34% in 2010 but continues tobe the leader in this space. (See Figures below).

India’s Share of Global Sourcing Market in US$ Billion

49%52%

45%55%

70%

34%

0%

25%

50%

75%

Global IT-ITES IT Services Market BPO Market

India's Share in Global Offshore Market (%)

2005 2010

1.962.2

2.292.54 2.8

0

1

2

3

2007-08 2008-09 2009-10 2010-11 2011-12(P)

Direct Employment

Direct Employment

Million Nos

49% 55% 52% 70% 45% 34%

India Share of Global

Offshoring Market

18

5919

47

2005 2010

Others

India

37

106

India Share IT Service

Export

13

4512

19

2005 2010

Others

India

25

64

India's BPO Exports

5147

28

2005 2010

Others

India

12

42

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2.2 Targets and Achievements of Eleventh Five Year Plan

The exports target for IT-ITES industry in 11th Five Year Plan has been $ 86.6billion by the FY 2011-12 with CAGR of about 24%. The industry is expected togenerate export revenues in the range of USD 68-69 Billion by 2011-12, with a CAGRgrowth rate of 17 per cent over five year period.

Table - 4 : Achievement of IT-ITES Export Target in XI Plan(US$ Bn)

2007-08 2008-09 2009-10 2010-11 2011-12

Target 37.6 47.5 60.0 72.1 86.6

Revised in MTA 50 60 72

Achievements (Exports) 40.4 47.1 49.7 59.0(E) 68-69(P)

MTA = Mid Term Appraisal(E) = Esitmated (P) = ProjectedNASSCOM has projected IT/ITES exports to grow 15-17 % in 2011-12.

37.6

47.5

60

72.1

86.6

40.4

47.149.7

59

69

0

30

60

90

2007-08 2008-09 2009-10 2010-11(E) 2011-12(P)

Targets vs Achievement

Target

Achievement

US $ Bn

The growth of the sector has also led to tremendous pay-offs in terms of wealthcreation and generation of high quality employment. Over the last five years, net directemployment creation by the IT-ITeS sector is estimated at 1.2 million professionals andindirect job creation is over 4 million.

3.0 Performance of Plan Scheme in XI Plan

Software Technology Parks of India

Software Technology Parks of India (STPI) was established and registered as anautonomous Society under the Societies Registration Act 1860, under the Department ofInformation Technology, Ministry of Communications and Information Technology,Government of India on 5th June 1991 with an objective to implement STP scheme, set-up and manage infrastructure facilities and provide other services like technologyassessment and professional training.

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The Software Technology Park (STP) scheme, a 100% Export Oriented scheme, ismeant for undertaking of Software Development for Export using data communicationlinks. The STP scheme is a strategic policy initiative by Government of India, whichallows software companies to set up operations in the most convenient and cheapestlocations and plan their investment and growth driven by business needs. STPI hasfacilitated regional development by uniform dispersal of STP units across secondarycities and thereby increasing employment opportunities in these areas.

STPI has created basic infrastructural support in the form of Business Incubatorswith state of art facilities with Plug & Play facilities for start-up companies. Theseincubation services enable small and medium enterprises to set up operations at minimalfixed costs with low start-up investment, thereby encouraging entrepreneurship andcreating jobs.

The number of unit registration with STPI has been decreasing in the past twoyears. The number of operating STP units as on 31-03-2011 stood at 6588 as out ofwhich 5532 STP units have been exporting with estimated exports of ` 207375.84crores during the year 2010-11. In the year 2009-10, around 250 units have de-bondedfrom STP/EHTP. In the year 2010-11 (Upto Dec, 2010) around 214 more units de-bonded from STP/EHTP. The exports by STP units have been over the last three yearhave remained almost stagnant.

During the 11th Plan period, number of exporting units have reduced from 6842 to5532. About 85% of the exports by STP units is contributed by less than 15% of totalnumber of STPI units. It can be seen from the table below that , more than 4000 unitswhich are in SME category (85% of the total STP units) are contributing about 15% ofthe total exports by STP units.

Table - 5 : Exports Revenue by STP Units

Exports Revenue by STP unitsNo. of

units (till2008-09)

Exports (inRs. Crores)(FY 2008-

09)

PercentageShare of the

Total Exportsby STP units(%)

Percentage ofUnits of the TotalNo. of Exporting

STP units (%)

Below Rs. 10 Crores 3828 11220.71 5.41 66.82

Between Rs. 10-50 Crores 1166 21850.42 10.54 20.35

Between Rs. 50-100 Crores 320 18847.48 9.09 5.59

Between Rs. 100-500 Crores 350 73204.54 35.30 6.11

Above Rs. 500 Crores 65 82252.59 39.66 1.13

Total 5729 207375.75 100.00 100.00

Source : STPI

Number of Operating STP units

75438188 8455

7007 6588

0

4000

8000

2006-07 2007-08 2008-09 2009-10 2010-11(E)

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During the Eleventh Five Year Plan, four new STPI centres have already becomeoperational and few more centres including centres in the North-East region are indifferent stages of development. STPI is working closely with the respective StateGovernments/local authorities for creation of more incubation space, equipped withstate-of–the-art infrastructure facilities, for development of the software industry andincreasing exports.

Today, STPI has 52 centres spread across the country and over 6588 units areoperating under STP Scheme. Majority of the STP units are Small and Mediumentreprises (SMEs) , which contribute about 15% in the total exports of IT-ITES sectorfrom the country. Besides deployment of STP/EHTP Scheme, STPI has been supportingthe smaller units and budding entrepreneurs to graduate up in the value chain. Many ofthe STPI centres are not yet scaled up and lack in providing the much needed support tothe start ups, incubation, plug and play facilities which are available in the JurisdictionalSTPI Centres. Such STPI centres need to be appropriately upgraded in the XII FiveYear Plan and work closely with the industry and local engineering institutes.

Income Tax benefit on exports by STP units were to initially expire on 31st March2009 which was further extended twice, once to 31st March 2010 and then again to 31stMarch, 2011. With the withdrawal of Income Tax benefits beyond 31-03-2011, thenumber of new STP units registeration has declined as new IT-ITES units are comingup in the IT-ITES specific SEZs. About 236 IT-ITES SEZs have been notified. Out ofthis, over 75 IT-ITES SEZS have already become operational. As per the proposedDTC Bill, the IT-ITES SEZs units , which become operational upto 31-03-2014 wouldbe eligible for the benefits for a period of 15 years as per the SEZ Act 2005. It ispertinent to mention that STP scheme provides an alternative channel for unrestrictedgrowth, if the current impediments are removed.

In the XII Plan , STPI needs to play more dynamic and proactive role forsustaining the growth of SME STP units and may be required to administer someschemes for extending benefits to STP units especially in Tier II & Tier III locations.

4.0 Twelfth Five year Plan (2012-2017) : Objectives, Targets & Strategies

4.1 Objectives

The main aim is to harness the potential of the software and services sector tocontribute to the country’s development and growth, particularly in terms of investment,exports, employment generation and contribution to GDP. Keeping in view the growingcongestion in Metros(90% of the IT-ITES revenue is from 7 Metros), the IT-ITESindustry needs to look beyond the Metro cities for balanced regional development. Thekey objectives for the twelfth plan are as under:

1. To retain India’s leadership position as a global IT-BPO destination, consolidateand grow in both mature and emerging markets.

2. Enhance innovation and build India as the hub for global design, IP and productdevelopment.

3. To harness ICT technology for inclusive growth, promote gender inclusivity andensure balanced regional growth.

4. To nurture and accelerate the growth for the SMEs and start-up enterprises in thecountry.

5. Build India centric software industry, drive domestic market IT adoption, andenhance SMB competitiveness in the country.

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6. To focus on development of IT- ITES/ BPO industry beyond the current 7Metros including NCR.

4.2 Targets for the Twelfth Five Year Plan

Over the next decade, several global megatrends will shape the technology andITES/BPO industry as they reshape the global economy. Hence with increased GDPgrowth of emerging markets, and shrinking working age populations, these megatrendswill present a new set of hitherto untapped opportunities that will include emergence ofnew verticals, service lines, geographic and customer segments. On the back of thesetrends, the addressable market opportunity for the IT-ITES/BPO sector is likely toexpand from the current USD 500 billion to USD 1.5 trillion by 2020.

Given the backdrop of large untapped demand potential and strong fundamentals,India is uniquely positioned to secure global leadership, grow its IT-BPO exports at acompounded annual rate of 13.8 percent, and generate export revenues of USD 130billion, and domestic revenues of USD 40 billion by FY 2017. Direct employmentgeneration is expected to increase by 65% from FY 2011 levels, to 4.2 million, whileindirect employment is expected to touch 10.6 million by FY 2017. This translates toincremental direct employment of about 1.4 million people and incremental indirectemployment of 2.3 million.

Further, establishing India’s leadership in the global IT-BPO sector will meanmore than achieving a targeted growth in exports. Following are a proposed set ofindicators that may be used as targets to be achieved during the 12th plan. Attainingthese ambitious outcomes will require breakthrough collaboration amongst, central andstate governments, industry players and industry associations – to ensure thatappropriate actions required to maximize the global sourcing market potential andsustain India’s superiority as the preferred sourcing destination are executed in a timelymanner.

The goals identified to achieve the aspirations are as under:Description Current (FY2010-11) Target FY 2016-17

IT-ITES Exports USD 59 Billion USD 130 Billion

IT-ITES Domestic

revenueUSD 17.2 Billion USD 40 Billion

Direct Employment 2.54 million 4.2 million

4.3 Strategies1. Build an enabling policy environment for India to sustain and grow its

leadership in the global sourcing sector in developed and emerging markets.2. To support small and medium enterprises and provide competitive edge through

fiscal benefits, innovation fund and incubation.3. To build world class infrastructure in identified tier II & tier III cities to create

new hubs for industry development as potential centres of excellence.4. To address the gap of employability through skill development initiatives.

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5.0 Institutional Framework

5.1 Inter- Ministerial Group: The industry currently faces a number of issues thatare inter-ministerial in nature and do not get resolved. There is a need to have anInter Ministerial Group having representation from the concernedMinistries/Departments and determine bottlenecks and recommend solutions. TheGroup would meet quarterly. The Inter Ministerial Group will also review the on-going activities and suggest mid-course correction wherever required.

5.2 Software Technology Parks of India (STPI): In view of the withdrawal of thetax benefits for STP units, STPI is working out a road map to facilitate the ITsector in the changed scenario. Some of the salient steps in this direction are givenbelow: A non-profit linked incentive schemes for STP registered units is being

formulated to ensure accelerated growth of IT/ITES exports and the dispersalof IT/ITES industry to the Tier II and Tier III cities across the country.Based on the format of the scheme, requirement of funds would be workedout.

The present incubation programme of STPI would be further strengthenedfor innovation led Business Incubation and entrepreneurial development forstart up units. This programme would be designed to provide venture,infrastructural and mentoring support to the entrepreneurs. In addition to theexisting infrastructure available at 52 STPI centers, STPI is in process ofcreating additional incubation space at Gurgaon, Mohali and Bengaluru as ofnow. STPI would explore creating more and more incubation space in Tier IIand Tier III cities across the country. Proposal for above initiative is underpreparation at this stage.

STPI is working with DIT for establishment of a National ProductivityNetwork, which would create capacity and necessary IT infrastructure acrossSTPI centers to provide support primarily to SMEs across the country. Forthis, the data centres at major STPI centers having excellent datacommunication and cloud computing resources would be created.

MSMEs in India are facing unprecedented challenges necessitating the needfor ICT adoption in their business processes and integrating into globalizedeconomic environment. With ICT tools, the MSME sector can improve uponthe way it is doing businesses currently and become more vigilant in thefiner details in its day-to-day operations thereby increasing its owncompetiveness. The ICT adoption in manufacturing sector can change theway the organizations conduct their business which will enable them tocompete in the national and international markets. The major objective ofICT application is the cost-effective and efficient improvement in businessactivities.

STPI would promote and assist the start-up companies ininnovation/research & development. Further, STPI would also createawareness & encourage the start-up companies to register the IPR of theirinnovative products.

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6.0 Key Constraints and Challenges

While India continues to be the dominant player in the global sourcing sector, itsfuture will depend on how challenges to its continued competitiveness are tackled. Theprimary sources of risk are low employability, infrastructure constraints, rising costs,discontinuation of fiscal incentives and a supportive policy framework and lack of aninnovation ecosystem. In addition, the competition is intensifying and many countriesare now positioning themselves as global sourcing destinations providing a plethora ofincentives.

(i) Competition and strong pull from other countries : China, Philippines,Vietnam, Poland, Hungary, Mexico, Brazil, Egypt are an indicative list ofcountries that are emerging as competitive locations with this increasing to almost50 locations which present a huge challenge to India’s success story. Many ofthese countries are offering a host of incentives (income tax holiday, deductionfrom taxable income upto 40% of the salary of additional skilled and unskilledworkers, reduced rentals, subsidy on trainings, access to government contracts) toattract global players to set-up operations in their countries. Various Governmentsprovide attractive incentives through fiscal, indirect and ICT sector-specificschemes.

There is real danger that some of these locations will move from being smallsecond-source alternatives to primary sources. Already, many MNCs and Indiancompanies are setting up centres in these countries. As an example, Philippines isalready half the size of the Indian ITES/BPO industry and is expected to grow atrapid pace.China is intent on transforming its economy from a manufacturing engine into aservices hub, and the Chinese Government has been pushing the growth of thecountry’s service outsourcing market. Though the total offshoring market in Indiais much higher compared to China, R&D offshoring has a different story. India’saccounts for 20-25% of the global R&D offshoring market with China closebehind at 15-20% market share. There are about 920 MNCs with about 1,200subsidiary centres carrying out R&D related work in China. However, there areonly about 400 R&D centers in India. Chinese government has initiated severalpolicies & programs to promote R&D activities in the country. The financial andtax incentives and other preferential treatments have been able to save 15-20% ofthe operations cost and has also helped reduce the set up costs significantly forMNCs. China is pushing talent development and its’ strategy is to increasespending on education and provide monetary incentives to companies developingtalent pool.Another important factor to be considered is that due to its nature of being lesscapital intensive and flexibility in operations, IT/ITES industry can be relocated ina very short time. If India is not able to retain its competitiveness and the status ofbeing most preferred destination for outsourcing, not only the foreign companieswould move to other destinations that are more attractive but Indian companiesmay also prefer to set up operations in those countries due to the same reasons.

(ii) Reduced competitiveness of the industry : India’s competitiveness is decliningdue to a diminishing employable talent pool, high cost of doing business due toinefficiencies of power, transport, security, concentration in metros due to

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inadequate infrastructure in other towns etc. Currently, over 90 per cent of totalrevenues are generated from 7 Tier 1 locations which are nearing peak capacitiesin terms of infrastructure support. And hence there is a pressing need to fast-trackthe development of alternate delivery locations in Tier 2/3 cities. The companiesin India have invested in world class facilities, extensive talent developmentinitiatives, disaster recovery and business continuity, high cost of transport,enhanced security, captive power generation, UPS and other equipments whichhave over all created a cost disadvantage of 10 – 15% as compared to otheremerging markets. Thus, India will be hard pressed to manage its competitivenessin the wake of rising costs and increasing competition.

(iii) Improving the Supply and Capacity of Suitable Talent: Though India accountsfor over 28% of the total suitable talent pool available to work in the IT-ITES/BPO sector across all the potential global sourcing low-cost locations, theproportion of graduates found suitable for employment is fairly low (quotedestimates range 10-20 percent). As a result the effective pool of employablegraduates is far lower than the overall pool of people entering the working-agepopulation.

Currently, any graduate who is hired, irrespective of the institute he comes from orhis skill levels, is put through the 16-week training (in areas such as technicalskills, soft skills, company orientation and process-specific domain skills) when hejoins the firm. Research shows that the industry spends over 1.5% of its revenueson training activities alone. This incremental training post education completionof students is a clearly a drag, and recruiting a trainable pool is not a sustainableoption going forward. Inadequate English-language proficiency and lack of soft-skills are the key gaps in the current graduate pool, reported by the industry.Further, as highly skilled talent enters the workforce, the gestation period beforenew employees can generate revenues (up to six months for some players) willdiminish and there will be a much greater focus on ongoing development ofspecialised skills and capabilities. There are many initiatives being run by theindustry to partner with the universities to enhance the employability of the talentpool.

(iv) Lack of early stage/angel funding : While venture capital availability has grownstrongly in India, most of it is concentrated towards later stage (Stage 2 onwards)and private equity funding. There continues to be a severe shortfall in seed stagefunding / angel funding. Even the available seed funding is skewed towardsentrepreneurs focussed on services business as it has a relatively short gestationperiod. This results in the IP focused entrepreneurs facing a severe ‘access tocapital’ challenge as IP development requires a long time horizon and hencepatient investment.

VC funds are reluctant to invest in early stage start-ups as they do not have accessto low cost capital.Government (CSIR, DST, DBT etc) have several schemes for providing seedcapital to entrepreneurs but the amounts are low and none of these schemes is ITfocussed.

(v) Global economic recovery : The Indian IT-ITES/BPO sector has been an exportled industry with USA and UK accounting for almost 75-80 percent of theindustry’s export revenues. The global recession of 2009 had a great impact on the

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growth trajectory, with growth beginning to decline FY2008-09 inwards, to singledigit levels in FY2009-10. While the situation improved in FY2010-11 withdouble digit revenue and employment growth, major global economies have notyet fully recovered.

(vi) Direct and indirect protectionism in key markets : US, UK, Australia are someof the key markets wherein there is increasing movement on direct and indirectprotectionism. This is being manifested through introduction of legislations onvisas, taxation, TARP (Troubled Asset Relief Program) regulations etc. Some ofthe suggested measures have the potential of severely impacting the businessmodels that the industry has developed and pioneered over the last decade.

(vii) Transparent and stable policy framework with defined implementation:Multinational companies today account for over 30 percent of the industryrevenues and employment creation. Lack of clarity in approach to transfer pricingis leading to inflated tax demands and enhanced litigation with theseorganizations, some of whom are choosing to relocate their APAC headquartersand hence decision making to other countries like Malaysia, Singapore etc. Therealso continues to be uncertainty on policies, changes in announced programs MAT(Minimum Alternate Tax), labour laws. It is imperative that a harmonious policystructure is created which is implemented uniformly across the country.

(viii) ‘Made in India’ procurement : The combined spend on IT (hardware, software,services and network) related procurement by the Government in India is huge andGovernment is the largest procurer of IT in India. Apart from services, asignificant proportion of the IT assets deployed in projects (hardware, softwareproducts ) are imported.

Indian firms particularly the SME firms who develop products find it difficult tosell to the Government as they lack the sales capacity or they fail to meet thequalifying procurement criteria e.g. annual revenue, number of customer etc. As aresult the ‘Made in India’ IT products find it difficult to scale up.

(ix) Lack of research capacity : A key weakness of the Indian IT industry includingGovernment agencies is the lack of original technology development. Majority ofIT deployed in India is either imported or IPR resides with non Indian entities.

Innovation ecosystems who lead in technology development e.g. Silicon Valley,have demonstrated that a key lever for technology development is the maturity ofthe post-graduate and doctoral research program. In India, the number of computerscience doctoral research programs is very low – both qualitatively andquantitatively.

(x) Declining Global ITES/BPO share : India’s share in global BPO off shoringmarket has declined due to competition from other emerging countries.Development of the BPO industry in Tier-II and Tier-II cities, which is feasibleunder the STP scheme, is important for ensuring long term competitiveness asTier I locations would gradually loose their competitive edge over the otheremerging nations due to high infrastructure cost. Lack of skilled manpower andsustainable supply of talent pool remains a major hurdle especially in tier 2 and 3cities.

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7. RECOMMENDATIONS FOR ACHIEVING THE 12th PLAN VISIONFOR THE IT- ITES INDUSTRY

Based on the assessment of the key challenges and constraints, it was suggested todrive domestic domestic growth, address issues of talent and skill building, ensureIndia’s competitiveness, incentivise the SMEs and need to play a proactive role by theState Governments so as to provide ease of doing business.

The 12th plan policy approach will centre on a five-pronged strategy that willinclude:

(i) Building new markets and expanding the core markets - Access and Outreach(ii) Accelerating the ecosystem and initiatives for small and start-up companies

(iii) To strengthen infrastructure & eco-system in other cities for regional balanceddevelopment of IT-ITES/BPO sector.

(iv) Enabling policy environment that encourages innovation, employment creation,skill development and domestic IT adoption for inclusive growth

(v) Leveraging India’s demographic dividend through skill development

Some of the recommendations relating to IT-ITES industry would cut across theother sub-groups of DIT for the twelfth plan and also come under the purview of otherMinistries/departments (viz, MHRD, DOC, MEA, MSME).

Each of these recommendations and fund required for the respectiveProgram/Scheme are given below:

1. Building new markets and expanding the core markets – Access and Outreach

1.1. Market Creation and awareness

RecommendationBrief

It is recommended to launch a `Communication and OutreachCampaign’ to promote the facts of India as a value added partner creatingjobs, fuelling innovation and contributing to source markets.This campaign will have a multi-fold strategy that spans across -Participation in focused trade shows, B2B custom events, Creating relevantcollaterals, CSR initiatives, Advertising and academia partnerships. Theobjective would be to demonstrate the capabilities of India andopportunities for partnership.

Stakeholdersinvolved

DIT MEA Department of Commerce IT Industry Associations

Components offunding

Rs 50 crore over the 12th Plan period

Implementation The global economic downturn has created an environment forprotectionism in key markets with perceptions being created that jobs arebeing lost to India. It is important that DIT in partnership with NASSCOMlaunches a `Campaign’ to promote the facts of India as a value addedpartner creating jobs, fuelling innovation and contributing to these markets.This campaign can also highlight the opportunities in the Indian market andhow multinational companies are leveraging these opportunities and

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contributing to their economies.

The implementation of the campaign will be undertaken through pre-defined agencies approved by a multi-stakeholder Steering Committee.

1.2 Market Expansion and diversification in non-English speaking geographies

RecommendationBrief

Start a special program for non-English speaking markets. This can includelanguage training, student exchange program, bilateral delegations andshowcases, multi-lingual website etc. The focus areas to start with could beJapanese, German and Spanish.

Stakeholdersinvolved

DIT MEA MHRD IT Industry Association

Components offunding

Rs 10 crore over the plan period

Implementation The industry’s exports are largely targeted at the English speaking marketsin US and Europe. However, data indicates that the future opportunity forthe industry will lie across non-traditional markets wherein key capabilitieswill include language skills and cultural affinity.

For the 12th Plan period, it is recommended that DIT should supportdiversification and market expansion in Non-English speaking markets byfacilitating creation of manpower for foreign language training of ITprofessionals in Japanese, German and Spanish.

DIT will prepare scheme for specialised language training institutes forimplementing training on foreign languages. The industry interaction andcontent development can be done in partnership with MHRD and theindustry association.

1.3 To promote SME IT companies in accessing the markets in newgeographies through bilateral programmes

RecommendationBrief

In countries that are of strategic interest to India, DIT, in partnership withindustry associations can create a bouquet of offerings which can beleveraged by the government as it creates MOUs, and trade agreements.These offerings could include e-governance solutions, talent development,IT policies, setting up technology parks etc. These services could be offeredon a commercial basis and will help India to take leadership in thetechnology sector and benefit other markets also.

Stakeholdersinvolved

DIT MEA Ministry of Commerce & Industry IT Industry Association

Implementation DIT needs to work with different ministries to identify countries that are ofstrategic interest to India because of their natural resources, geographicalposition etc. DIT also has signed a number of MOUs in different marketsthat are not being leveraged enough.

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DIT in partnership with industry can identify and create a bouquet of best inclass, relevant offerings from the industry which will be of benefit to theabove countries, and market them to the same.

For example- In countries like Africa, India has recently committedUSD5.7 billion to enhance support for institutional capacity building,technical assistance and training programmes for human resourcedevelopment. The Government can ensure that these programs leverage useof Indian IT products and services.

1.4 Studies on Competitiveness Measure

RecommendationBrief

Countries like China, Philippines are emerging as significant competitorsfor India supported by an enabling policy framework and investment ininfrastructure and education.It is recommended that DIT should support in conducting studies, whichcan engage global consultants, think tanks and policy makers to evaluatespecific measures being taken by these countries and recommend specificinitiatives for India to retain and enhance its competitiveness in this sector.Activities could include tracking messaging related to India, unfairpractices that can give countries an edge over India, customer surveys,visits and reports on emerging competition.

Stakeholdersinvolved

DIT IT Industry Association Third party consultants

Components offunding

Rs 20 crore over the plan period

Implementation DIT in consultation with the industry association would engage third partyconsultants for periodic studies - wherein select countries andissues/policies will be tracked.

1.5 Facilitate free trade, mobility for skilled workforce in key markets andcounter protectionist sentiments

RecommendationBrief

Labour mobility across borders has become a key concern area for theindustry and increasingly emerging as a non-tariff trade barrier.Protectionist bills are being introduced and implemented in key markets.A concerted effort by government and industry is required to fight theseprotectionist sentiments by providing factual information on the industry,engage with different advocacy groups etc.

Stakeholdersinvolved

Department of Information Technology Ministry of External Affairs Ministry of Commerce and Industry

Components offunding

Rs 20 crore across the plan period

Implementation IT Industry, Industry Associations and DIT to strengthen the currentinitiative.

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Department of Information Technology to work with Ministry of ExternalAffairs and Ministry of Commerce and Industry to develop and promote theconcept and creation of a Non Resident Services Visa for technologyprofessionals.

2. Accelerating the ecosystem for Emerging Companies and start-ups

2.1 Non profit linked incentives to promote small companies

RecommendationBrief

The Software Technology Park scheme has played a stellar role in thegrowth story of the IT-ITES/BPO sector in the country and helpedemerging companies of the past emerge as global leaders. To providecompetitive edge to small and start-up companies and to attract investmentsbeyond Metro cities (i.e Tier II & Tier III cities), there is a need for similarenabling environment.In other competing countries incentives & benefits are extended both atFederal level and the State/Province level to attract investment andemployment generation in IT-ITES sector. Hence, it is pertinent for theState Governments to provide incentives (Specimen list of incentivescurrently being offered by some State Governments to attract investment inthis sector is attached as Annexure I) to IT-ITES companies for creatingeco system and a level playing field to compete globally. At the Central Government level, it is recommended that DIT

introduces a non profit linked scheme for small companies, especiallyin Tier II & Tier III cities (All cities beyond 7 Metros including NCR),which would be linked to investments and employment creationespecially in Tier II & Tier III locations, subject to a ceiling.

Stakeholdersinvolved

DIT STPI

Components offunding

Rs. 5000 crores – estimates will depend on the scope of the Scheme

Implementation DIT in partnership with STPI can be the facilitator for disbursement offunds and define processes for small organisations that submit audited taxreturns and balance sheets can get the necessary reimbursements.

2.2 Seed Capital / Start-up Funding

RecommendationBrief

While the country has a healthy ecosystem of venture capital and privateequity firms, there is lack of seed capital for start-ups in the country. It isrecommended that DIT may establish a corpus of Rs 250 crore to energiseseed stage / angel funding for IT start-ups in India. As investing directly instart up firms and managing a portfolio requires competencies and skills,the corpus established by DIT should act as a ‘fund of funds’.

Stakeholdersinvolved

DIT STPI State Government Financial institutions

Components offunding

Rs 1000 crore over the Plan period

Implementation As a ‘fund of funds’, DIT should provide funds to VC funds which arefocussed on early stage funding. The funds which take money from DIT

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should agree to reserve a certain percentage of their corpus for angelfunding in start-ups focussed on IP development. Other conditions could bethat the VC funds who receive funds from DIT should raise matching fundsfrom non-Government sources

A TePP for IT scheme can also be looked at to encourage software productinnovation.

2.3 Market development initiatives

RecommendationBrief

Branding and market development are key areas wherein small and start-upcompanies are lacking capabilities, funds and channels.It is recommended that DIT should enable a market development schemefor small and start-up companies that will provide grants for participating ininternational events, research reports that identify white spaces for smallcompanies, facilitating an SMB collaboration program globally, annualawards that recognise the best small companies etc.This would be relevant for both product and start-up companies.

Stakeholdersinvolved

DIT Ministry Commerce & Industry IT Industry Association

Implementation DIT in partnership with IT Industry Association can look to set up can setup a focused cell that will enable small companies to leverage and partnerin this scheme.

2.4 Cluster Development / Affordable infrastructure

RecommendationBrief

As cost of real estate increases in the key cities, small companies are unableto find affordable infrastructure. In tier 2 cities, there does not exist clustersof office infrastructure. Similarly for start-ups, there is a need to establishincubators.It is recommended that DIT in partnership with state government shoulduse the current Software Technology Parks infrastructure to provideaffordable infrastructure for small companies; establish ‘thematic‘incubators either directly or through a PPP with firms specializing inmanaging incubators.

Stakeholdersinvolved

DIT STPI State Governments

Implementation DIT in partnership with industry can conduct a survey to determineinfrastructure requirements for small companies and then determineappropriate changes to the current STPI locations.

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2.5 Government Procurement

RecommendationBrief

All Government related procurement must have a preference for IP assets(software and hardware) which have been ‘made in India’ and IP is ownedby Indian registered entities. Large IT firms who execute the largecontracts, should be encouraged to use IP owned by Indian registeredentities without diluting quality. Special preference or credits should begiven if the IP owner is an Indian SME.

Stakeholdersinvolved

DIT( E-Gov) Industry Ministry of Finance

Components offunding

NIL

Implementation The tendering process for the government will need to be modified so thatfirms that collaborate with small companies for IP development are givensome credit during evaluation. Large IT firms which bid for e-governanceprojects and have small Indian firms with IP as their partners in the biddingprocess should be given extra weight age without compromising on quality.

2.6 Internet, Content and Mobile Value Added Services(VAS) start-upinitiative

RecommendationBrief

Establishing an Internet, Content and Mobile VAS Start-up Initiative- DITto bring together a coalition of mentors, advisors, funders, majorcorporations and service providers to deliver strategic and substantiveresources to help entrepreneurs start and scale companies. Suggested initialareas of focus areas could be Mobile VAS and Internet focused companies.

Stakeholdersinvolved

DIT DIT’s autonomous bodies IT Industry Associations Industry players

Implementation DIT in collaboration with IT Industry Association will lead, evangelize, andpromote the development of an Internet, Content and MVAS Start-upinitiative where all stakeholders within the system viz. mentors, advisors,funders, companies and service providers will come together to promoteentrepreneurship, provide handholding and guidance to buddingentrepreneurs.

3. To strengthen infrastructure & eco-system in other cities for regionalbalanced development of IT-ITES/BPO sector

3.1. New Delivery Centre Development

RecommendationBrief

It is recommended that a priority plan be built to strengthen infrastructureand ecosystem in 10 cities wherein some initial activity has started and canemerge as significant locations for the industry. An end to end citydevelopment plan will need to be undertaken for these cities.

Stakeholdersinvolved

DIT Ministry of Commerce & Industry (DIPP and DOC) State Government

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Implementation Plan development from various aspects, such as macro policy plan anddesign, skill development, investment and comprehensive coordination,etc.

An integrated physical and social infrastructure plan is funded bycentral and state government.

Policy support of single windows clearance Fast track SEZ development in these states Marketing and investment campaign to attract companies Provide capital subsidy on all capital investments for organizations

setting up in these cities subject to a ceiling

3.2. Support for the Information Technology Investment Regions(ITIRs)

RecommendationBrief

ITIR (Information technology Investment region) is envisaged as a selfcontained integrated knowledge cluster dedicated to establishment andgrowth of IT, ITES, EHM units. While the scheme has been notified by thecentral government, the onus of implementation is on the states and lack offunds, land etc has resulted in the scheme not moving forward.It is recommended that a dual structure of funding be looked at partially byCentral government and partially by the state to enable ITIR development.

Stakeholdersinvolved

DIT(E-Infra) State Government

Implementation While, the internal infrastructure cost can be met by the state government,external infrastructure support from Government of India needs to beprovided under Viability Gap Funding (VGF) Scheme,

3.3. Access and connectivity across the country

RecommendationBrief

Providing connectivity, along with provision for access devices, toinstitutions and learners.Extend computer infrastructure and connectivity across the country.

Provide access to basic entry-level computer and communication resourcesfor all students and teachers, regardless of location or socioeconomic status

Stakeholdersinvolved

DIT (E-GOV) State Governments

Implementation Broadband plan of connecting 250,000 villages to be completed in theplan period.

CSCs/Post office to be set up in all 600,000 villages; connect panchayatsto national broadband infrastructure

Provide incentives for developing low-cost computing platforms thatfacilitate technology adoption in rural areas

In smaller industrial clusters where firms cannot afford anything but basicIT, the local Government agencies in collaboration with clusterassociations and technology providers can establish common facilities atthe cluster levels under the shared information management servicesapproach. The common infrastructure of the shared service centre can beused by the cluster firms and paid on a usage basis.

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4. Enabling policy environment that encourages innovation, employmentcreation, skill development and domestic IT adoption for inclusive growth

4.1. Build innovation infrastructure

RecommendationBrief

Create MSTQ infrastructure: There is need for Measurement,Standardization, Testing and Quality centers across the country requiringsubstantial capital investment.Government should also enable industry to partner with government runtest labs to ensure product testing and standardization.

Stakeholdersinvolved

DIT MSME Central / State Government

Implementation DIT should invest in creating a MSTQ infrastructure for softwareproducts across India. While DIT can provide the initial CAPEX forestablishing these facilities, they should be self sustainable over a periodof time.

DIT should also provide financial support to SME for achievingaccreditation and certifications as these are required to do business ininternational markets especially in sectors like financial services. Thiscan be capped at 50 percent of the actual cost of the certification.

For specific clusters like automotive, aerospace, embedded software,test lab infrastructure should be set up in PPP basis.

Government test labs should be encouraged to partner with industry forco-creation and product development.

4.2. Promote Indigenous Innovation

RecommendationBrief

Build a strategy on indigenous innovation that should focus on key areasthat are of strategic importance to India. In areas where technology productsare already being commercially developed, look at a localization and multi-lingual strategy.

Stakeholdersinvolved

DIT(R&D IT) Industry Ministry of Science and Technology

Implementation DIT to empanel agencies that can identify and create roadmap forbuilding indigenous technology solutions that is of strategic importanceto the country

Review regulations for IP rights, trademark registration and patents Incentivize the development of low cost solutions/products for the

Indian market Develop SMEs for frugal engineering

4.3. Non profit linked incentives (Also covered under Rec. No. 2.1)

RecommendationBrief

As the Direct Tax Code will come into play from 2012, it envisages aregime of investment-linked incentives. The industry which is services

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centric and investment in plant and machinery is limited will not benefitfrom this. It is recommended that non-profit linked incentives thatsupport the services sector are introduced.

Stakeholdersinvolved

DIT Ministry of Finance

Implementation To implement the above schemes, DIT will need to create a corpus(which is a certain percentage of the tax paid by the industry). Detailedguidelines and online forms can help the industry to submit necessarydocuments for reimbursements that are made within a 90 day period.

4.4. Incentivise R&D in Services

RecommendationBrief

Given the contribution of research and development (R&D) to productivitygrowth, economic performance and the achievement of social objectives, itis generally agreed that governments have a role in encouraging appropriateR&D levels and expenditures. Considering the changing composition of theIndian economy, there should be schemes/measures in place to define andincentivize R&D in the context of services companies. The schemes caninclude:Definition of qualifying R&D - There is need for a clear definition of

what constitutes research and development costs qualifying for the taxincentive. DIT to define various levels/intensity of R&D in the IT/ITESindustry in collaboration with the industry

Review the fiscal incentives offered by OECD countries and introduceprovisions for tax credits and tax allowances in line with the same

Introduce an SME tax credit for R&D, which includes externalpurchases of R&D services (from universities and public researchinstitutes) as well as research conducted by the firm itself

Stakeholdersinvolved

DIT(R&D Group) IndustryMinistry of Science and Technology

Implementation DIT in partnership with industry should look at R&D in IT/ITES sector –build clear guidelines and how the industry can leverage the benefits thatexist already, as well as implement schemes defined above.

4.5. Inter-Ministerial Collaboration

RecommendationBrief

The industry currently faces a number of issues that are inter-ministerial innature and do not get resolved. It is recommended that DIT creates a specialcell that is responsible for inter-ministerial collaboration and facilitatesclosure/ recommendations on specific challenges faced by the industry

Stakeholdersinvolved

DITMinistry of FinanceMinistry of Commerce and IndustryMinistry of External Affairs IT Industry Association

Components offunding

Nil

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Implementation The Inter Ministerial Group will review all industry issues on a quarterelybasis and determine bottlenecks and recommend solutions.

4.6. India as an easy place to do business in

RecommendationBrief

Ensure ease of doing business in India

Stakeholdersinvolved

DIT Ministry of FinanceMinistry of Commerce & IndustryMEAMoL&E

Components offunding

Nil

Implementation Create a regulatory environment that is relevant from a service economypoint of view (e.g., rationalization of labor laws, liberalization ofemployment visa rules, transfer pricing, taxation)

Investment and FinancingHarmonious policy structure implemented uniformly across the country in

a defined time-frame

4.7. Human capital development in Tier II & Tier III Cities

RecommendationBrief

As IT adoption proliferates in India, there will be a huge demand for IToperational skills by first time IT users across market segments.Therefore, there is an urgent need to develop human capital skilled in ITespecially in Tier 2 and Tier 3 towns and rural locations.

Opening vocation training institutes in these cities for basic skillsdevelopment i.e. Spoken English, typing and computer education.

Tie up with institutes and colleges to run specialized courses forprocesses in which Indian BPO industry is engaged.

Stakeholdersinvolved

DIT Ministry of Human Resource Development MSME

Implementation The existing schemes of DOEACC need to be scaled up rapidly throughtechnology interventions.

DIT should also consider participation in the Modular EmploymentScheme (MES) of the Ministry of Labor to provide a strong thrust on ITskill development.

4.8. Localised and simplified software solutions

RecommendationBrief

The workforce deployed in small and medium businesses largely belongs toa socio-economic background where familiarity with the English languageis low. The local language initiatives of the Government have been sporadicin nature and there is a strong need for a clear and unequivocal policy onlocal language IT applications. Cloud computing has created an

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infrastructure of anytime access. It is recommended that key applicationslike basic ERP, accounting solutions and document management areenabled in local languages for adoption by SMBs.

Stakeholdersinvolved

DIT(R&D Group) MSME

Implementation DIT should incentivize SME technology solution providers to developsoftware solutions with versions that have local language interfaces andpossess intuitive interfaces that reduce the dependency on language byproviding graphical representations and pictorial features.

The incentives for technology start-ups could include technologydevelopment grants on the TDB model of DST.

DIT can also provide market access to SME technology providers byaccrediting products developed by them

4.9. SMB Cluster Outreach

RecommendationBrief

It is recommended that DIT in partnership with MSME looks atestablishment of Resident Software Consultants at each Cluster, responsiblefor the following activities

o Software Awareness Seminars for sensitization of MSME clusters tothe value of software use in various parts of their businesso Software Need Assessment survey of MSME clusters for

developing appropriate software implementation strategieso Addressing specific software needs of a Cluster-based MSME

through Software Consultancy Projects by the Resident SoftwareConsultant.

Stakeholdersinvolved

DITSTPIMSME

Implementation Identify pilot clusters wherein technology adoption through residentsoftware consultant can be taken forward and implement the scheme over a12-month period.

5. Leveraging India’s demographic dividend through skill development

5.1. Soft Skills and Quality Enhancement

RecommendationBrief

The country has an adequate number of capacity intake in graduation andengineering colleges in the country. However, lack of soft-skills has beenidentified as a key gap across the workforce. Recommendations foraddressing this gap include: To improve employability and quality quotients, educational institutions

need to Introduce soft-skills and life/work skills programs. Engineering Colleges need to assess each student of his/her soft skills,

and life/work skills deficiencies after the first 2 semesters so as to takeremedial measures, in case of skill deficiencies.

DIT in collaboration with IGNOU to launch a Certificate Course inCommunicative Skills for BPO / ITeS services personnel, through theOpen & Distance Learning (ODL) system across India;

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English Communication skill - Every student enrolled in a DegreeCourse in the General Stream should have an opportunity to improvehis/her English Communication skill. Some Degree Colleges haveavailed funding from the University Grants Commission to finance suchcourses in their colleges. However the number of such colleges islimited. A concerted strategy needs to be worked out with the HRDMinistry to see that during the 12th Plan period large number of suchinstitutes can operate similar courses.

IT-ITES BPO industry associations to encourage IT-ITES companies toprovide Apprenticeship/Internship to the young engineers during theirgraduation.

In the present system of Accreditation of educational institutions,feedback from the industry must be an integral part of the Accreditationprocess.

Stakeholdersinvolved

DIT (HRD) Ministry of Human Resource Development

Implementation Draw out a detailed plan on soft skills enhancement by DIT and MHRDand implement in PPP mode.

5.2. National Standard on employability assessment

RecommendationBrief

Given the varying standards of numerous institutes, accreditation oftechnical educational institutions offering Computer Science/Engg,Information Technology graduation courses, need to be made mandatory.

Stakeholdersinvolved

DIT (HRD) Ministry of Human Resource Development IT Industry Association State Governments

Implementation National Board of Accreditation (NBA) would be required to takenecessary steps for accreditation of the prorammes.

5.3. Focus on specialised skills

RecommendationBrief

The next phase of growth for the IT-BPO sector will require specializedskills, domain. The education system in India currently focuses ongeneralist skills and industry has been meeting this skill gap throughspecialized training and learning on the job. However, for India to retainand enhance its competiveness, it is important that a system of electives onspecialized skills be introduced across the university system in the country.

Stakeholdersinvolved

DIT(HRD) Ministry of Human Resource Development

Implementation Define key specializations wherein electives can be introduced in the12th Plan through an industry research survey.

IT industry and industry Association to partner with government tocreate necessary curriculum and enable faculty development.

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5.4. Leverage technology for education

RecommendationBrief

A series of productivity challenges exist in the typical model of teachingand learning in the primary and secondary level of education. Technologyenabled learning can overcome current challenges and significantlyimprove productivity. Suggested technology initiatives below can addresskey challenges. Integrated IT solutions for in-classrooms instruction Efficient document on-boarding and platform hosting services for

teachers/students Innovative technology enabled ‘model’ schools Technology enabled testing and assessment solutions Technology enabled teacher training State-run online/ virtual schools for mainstream and vocational

education

Stakeholdersinvolved

DIT(HRD) Ministry of Human Resource Development

Implementation Funding support by the government for procuring of equipment-Initially to follow BOOT model for operational purposes. To enhanceTechnology adoption for the following:

Innovative technology enabled ‘model’ schools - Managed by thegovernment operationally; PPP with network and infrastructure players;content prescribed by the govt

Technology enabled testing and assessment solutions - Dedicatedfunding sanction centrally for CBSE and state level for State boards;content prescribed by the govt

Technology enabled teacher training - PPP with training institutes;Content decided by government in partnership with private vendors

8. Summary Recommendations:The 12th plan policy approach will centre on a five-pronged strategy that will include:

Building new markets and expanding the core markets - Access and Outreach. Accelerating the ecosystem and initiatives for small and start-up companies. To strengthen infrastructure & eco-system in other cities/ tier II & tier III cities

so as to create new hubs for industry development as potential centres ofexcellence.

Enabling policy environment that encourages innovation, employment creationand domestic IT adoption for inclusive growth.

Leveraging India’s demographic dividend through skill development.

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9. Plan Schemes and Estimated Fund Requirements In XII Plan

Reco.No.

INITIATIVE/PROGRAMME Amount(INR Crore)

1. Expanding the Market – Access and Outreach

1.1 Market Creation and Awareness 50

1.2 Foreign Language Training of IT Professionals 10

1.4 Study on Competitiveness Measures 20

1.5 Campaign against Protecionist Sentiments 20

2. Accelerating the ecosystem for Emerging Companies and start-ups

2.1Non Profit Linked Incentives based on Investments andemployment creation

5000

2.2 Seed Capital/Start up Funding 1000

Ongoing STPI related Programmes in the Plan scheme 15

TOTAL 6,115

Note : Funds for the Schemes /Programmes related to the other SubGroups/Ministries not included in this outlay.

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ANNEXURE – IIncentives Given by Various State Governments

to Promote the IT/ITeS Industry Capital Subsidy:(i) High Tech Parks are eligible to financial assistance @50% of fixed capital

investment in land, buildings & infrastructure facilities upto a maximum ofRs.25 millions.

(ii) New IT/ITES as well as expansion units investing between Rs.5 crores andRs 50 crores and employing more than 100 direct workers would be eligiblefor a capital subsidy of Rs.30 lakhs;

(iii) Higher capital subsidy would be eligible on investment in the range of Rs.50 crores to Rs. 200 crores and above.

Stamp Duty, Transfer Duty and Registration Fees

100% reimbursement of stamp duty, transfer duty and Registration fee paid by ITIndustry & Communication technology industry companies including start-ups onsale/lease deeds on the first transaction and 50% reimbursement on the 2nd transaction. Power Tariff

For the purpose of power tariff, IT maintenance and servicing units and hardware unitswill be treated as Industrial and not Commercial consumers and electricity tariff asapplicable to Industry consumers will be charged. IT/ITES unit will be consideredeligible for exemption from statutory power cuts.

Waiver of NOC from Pollution Control Board

IT/ITES units engaged in provision and production of “IT services and IT Software”will be exempted from seeking no-objection certificate from Pollution Control Board.

Simplification of Labour Laws:

The regulatory regime of labour laws has been simplified to suit the needs of IT/ITEScompanies. General Permission is granted to all IT/ITES companies to have 24x7operations/to run in three shifts. The barriers pertaining to employment of women atnight have been removed.In particular, the IT/ITES companies will be permitted to self certify compliance oflabour laws, maintaining the registers and forms as contemplated under the differentRules and Acts administered by the Department of Labour.

Floor Space Index (FSI):

In order to facilitate adequate availability of floor space to IT/ITES units in the urbanarea, State Governments would permit more than permissible FSI to IT Parks.

Venture Fund for IT/ITES Companies:

The State Governments have set up venture capital fund for IT/ITES companies whichis meant for development of IT services, IT software and IT products.

Patent Filing Costs:

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To encourage the filing of patents by IT/ITES companies, costs of filing patent arereimburse up to a maximum of Rs.2 Lakhs per patent awarded per year.

Special incentives to the Start up companies

Provide support to Start-up companies, which are promoted by budding entrepreneurswith creative ideas such as subsidy on lease rental, power bills, recruitment assistanceetc.

25% subsidy on lease rentals upto Rs.5 lakhs per annum maximum upto aperiod of three years, for the plug-and-play built up office space rangingfrom 1000 sft to 5000 sft, leased by Start Ups in STPI, IT/multi-purposeSEZs/IT Parks(both Public & Private promoted).

100% reimbursement of stamp duty, transfer duty and Registration fee paidby start up IT Industry & Communication technology industry companies onsale/lease deeds on the first transaction.

I50% reimbursement of stamp duty, transfer duty and Registration fee paidby start up IT Industry & Communication technology industry companies onsale/lease deeds on the 2nd transaction.

Admissibility of Industrial Power category tariff. 25% power subsidy on power bills for a period of 3 years or Rs.30 lakhs

which ever is earlier, from the date of commencement of commercialoperations.

Recruitment Assistance of Rs.2.5 lakhs for recruitment made upto 50 ITprofessionals within a period of one year.

Reimbursement of patent filing cost to a maximum of Rs.2 Lakhs per patentawarded per annum

50% Exhibition stall rental cost will be reimbursed for participating in thenotified national/international exhibitions limited to 9 sq.mts of space.

Special Incentives for setting up IT-ITES Industries in Tier II and Tier IIIlocations

Definition: State Governments have specified Tier II and Tier III locations in theirrespective States for the purpose of availing these incentives.

A subsidy of Rs. 10 lakhs to the first five anchor IT/ITES companies, asidentified by the State Government, employing more than 250 employees in ITor 500 employees in ITES in any Tier-II/Tier-III location.

Rs. 15 lakhs as recruitment assistance for employing minimum 100 employeeswithin two/three years of commencement of commercial operations in the Tier-II/Tier-III city respectively.

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e-Innovation/ R&D

1. Background

Technological change and innovation, driven by research and development havebeen found to be the most important sources of increased productivity, highergrowth and better welfare. As a result, there is a high correlation between thosecountries that have shown significant economic improvement in the past andthose countries that have made substantial investment in R&D. According to a2011 global R&D funding forecast, India’s investment in the crucial area ofR&D is 0.9% of GDP (on purchasing power parity (PPP)), which is quite low ascompared to other countries (Table below). It may also be noted that the ICT&Esector would account for a further small part of this investment, and majority ofthis R&D funding comes out of public funded R&D projects.

Table: 2011 Global Forecast (excerpts) – Gross Domestic Expenditure on R&D(GERD)

Rank Country GERD PPP (Billions,US$)

R&D as % ofGDP

1 United States 405.3 2.7

2 China 153.7 1.4

3 Japan 144.1 3.3

4 Germany 69.5 2.3

5 South Korea 44.8 3.0

6 France 42.2 1.9

7 United Kingdom 38.4 1.7

8 India 36.1 0.9

9 Canada 24.3 1.8

10 Russia 23.1 1.0

Source: 2011 Global R&D Funding Forecast, Featured article,December 2010, www.rdmag.com

It is believed that economic leadership in the 21st century will be achieved bynations who possess the ability to convert internal or external scientificdiscoveries into commercial solutions in an economical and efficient manner.Therefore, it is imperative for our country to enhance R&D capacities so as tomove higher up on the development ladder, develop and enhance indigenoustechnologies, and increase its share in global innovations and theircommercialisation. Furthermore, increased R&D capability and capacity alsoplays a significant role in enhancing country’s security.

In the above background, Government of India has constituted a Sub Group one-Innovation/ R&D under the Working Group on Information Technologysector for the formulation of the 12th Five Year Plan.

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2. Objectives, Targets and Achievement during 11th Five Year Plan(2007-12)

2.1 Objectives and Targets set for 11th Plan

The Study Team on R&D constituted for 11th Plan with a view to make India aglobal R&D hub had made following recommendations:

(1) To significantly energize and strengthen the R&D efforts and also restoreElectronics to its appropriate place, it was suggested that an IT andElectronics Commission may be created with administrative and financialpowers in line with Space and Atomic Commissions.

(2) To strengthen the mechanism to take the technologies developed throughDIT funding at academic/R&D institutes and labs to market forcommercialization, it was suggested to:

(i) Show case the technologies developed by DIT funding in differentcities,

(ii) Bring in changes in IPR policy defining the IPR and royalty sharingmechanism between developing institutions, inventors and theindustry. Also bring in Transfer of Technology (TOT) policy so as totake spot decisions on TOT and terms of TOT should also be put inplace,

(iii) Funding may be provided to all development oriented projects whereprototype units to be developed and deployed in the field and areupgraded based on feedback on field testing,

(iv) DIT should work out a detailed scheme for young entrepreneurs forsupporting technology innovations/incubation including providinginfrastructure, legal, marketing, mentoring, grant in aid support forproject, fiscal incentives and tax rebates,

(v) DIT may take an integrated view through a Technology InnovationPromotion Scheme (TIPS) and work out details of the scheme inconsultation with the stakeholders after reviewing the existingnational innovation system and successful models adopted in someleading countries to draw parallel,

(vi) Set up ICTE Clusters to create enabling environments to bringsynergies in research and development amongst local industry,academics and research institutions after examining different modelsfor adoption in India,

(vii) To facilitate Design led Manufacturing in the country a suitable taxcredit scheme may be evolved based on R&D investment,

(viii) Government should develop replicable and sustainable models ofdeployment of technologies and products by taking up fielddeployment beyond threshold levels,

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(ix) R&D policy of Government should facilitate outsourcing and R&Dorganizations must concentrate on the areas of their core competenceand outsource other jobs to become global leader with internalexpertise in all areas of ICT.

(3) To take care of talent crunch for DIT labs and universities and create moremanpower for research and to offset attrition, the following was suggested:

(i) To enhance pay scales of technical manpower in academics,Government and R&D labs to enable attracting/retention ofqualified manpower,

(ii) To attract more students to go for PhD, DIT should create aprestigious research fellow ship at enhanced rates, with a provisionfor participation of the scholar in national and internationalconferences for presentation of papers,

(iii) DIT should involve faculty of tier II institutions in research bysupporting a large number of small projects based on the strengthsand interest of concerned faculty.

(iv) For DIT autonomous societies earlier CDOT/CDAC model ofcontract manpower may be adopted in which higher level ofcompensation package and incentivization is possible. As otheralternative the IIT kind of system could be followed where onekind of people are provided tenure position yet with number ofincentives like consulting, sabbatical etc supported bycontract/project manpower as mentioned above.

(4) The contribution of private sector R&D in ICT has been a small portionproportion of country’s R&D expenditure and it should be increased to thelevel of 50 percent in next five years.

(5) Direct rewards may be created for the researchers and inventors whogenerate the patent able Intellectual Property. A Centre for global tradingof Intellectual Property may be created.

(6) Government should sponsor R&D Corporation of India (RDCI) with aninitial corpus of Rs. 1000 crores to help in creating, enabling environmentand ecosystem for attraction of funds for R&D including private sector.R&DCI will be empowered to work with all government agencies toprovide conducive regulatory and synergic environment.

2.2 Achievements made during 11th Plan

In accordance with the recommendation of the Study Group on R&D constitutedfor 11th Plan, a number of new initiatives were taken up by DIT, which havebeen described in the this report. However, some of the policy decisions couldnot be taken, such as creation of IT and Electronics Commission, bringing inchanges in IPR Policy, putting in place terms of TOT, creation of R&DCorporation of India etc.

As per the thrust areas identified in the 11th Plan, new projects/programmes weretaken for promoting R&D activities in different areas of IT, electronics, andcommunications. Some of the important achievements are summarized below:

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Initiatives on Nano-technology: The Centres of Excellence at IIT Bombay andIISc, Bangalore has been made operational. Major Centres are being created atIIT Kharagpur, IIT Delhi and IIT Madras. About 800 researchers across thecountry benefited through INUP programme. More than 30 patents have beenfilled, 600 technical papers published and about 300 PhDs students registered.A Nanoelectronics Innovation Council has been set-up recently.

Microelectronics development: Centres for analogue and mixed design havebeen created. Digital Programmable Hearing Aid developed and field trials arebeing conducted. 6 patents and 2 copyrights have been filed.

Industrial Electronics: Collaborative R&D focussed programmes on NationalMission on Power Electronics Technology (NaMPET), Automation SystemsTechnology Centre (ASTeC), Intelligent Transportation System (ITS) andElectronics Applications for Agriculture & Environment (e-AGRIEN) wereundertaken. NaMPET programme already completed and ASTeC is likely to becompleted by March, 2012. Commercialisation of successful technologiesdeveloped has started. Some examples are: Grid Interactive Solar Inverter,Railway Application, H/w & S/w automation technology modules, etc. FourTOT done and four copyrights/patents filed.

Medical Electronics/ Telemedicine: LINAC 6 MV machine developed undercollaborative programme & deployed successfully at hospitals. Also being usedby ISRO. TOT being processed. Pilot deployment of telemedicine technologiesdone in 6 States.

Electronics Materials & Components: Hafnium Sponge, SiC & High powermicrowave substrates developed first time in country for ISRO, DRDO & DAErespectively. Pilot production facilities are being created. E-waste recyclingtechnology (1MT Pilot facility) developed. NABL accredited Testing &Certification facility for RoHS created as the only Government facility.

RF/ Microwave Electronics: State-of-the-art facilities for Millimeter Wavetechnologies, compact antenna test range facility and batch fabrication facilityfor LINAC tube established. Being used by strategic Departments. Technologiesfor atmospheric instrumentation, communication systems for strategicapplications & microwave disinfections systems, RF driers for agriculturalapplications developed and demonstrated.

High Performance Computing: PARAM Yuva (sustained performance of 37.8Teraflops & peak performance of 54 Teraflops) with 200 Terabytes storagecommissioned. Application developed include weather forecasting, drugdesigning, bio-informatics, seismic modelling.

Grid Computing: Garuda grid has been deployed on National KnowledgeNetwork. Interoperability achieved with European grid.

IT Emerging Areas: National Ubiquitous Computing Research ResourceCentres made operational in Hyderabad, Chennai and Bangalore. Perceptionengineering Programme initiated. Under National RFID Programme ParcelTracking System has been implemented for Department of Posts in six metroscovering 140 post offices.

Free / Open Source Software: Open Source Software (NRCFOSS) established.Bharat Operating System Solutions (BOSS) Desktop developed with Indianlanguages support. BOSS Advanced Server developed with enhanced security.27 pan-India BOSS Support centres established for providing support. BOSS

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deployments in education and government sectors have been taken up. R&Defforts have been undertaken in areas of mobile technologies & applications,service oriented architecture, software as a service, GNU compiler construction(GCC), FOSS lab server, enhancing accessibility of FOSS desktops and e-learning tools.

Bio informatics: Tools/ databases developed for applications in Drug Delivery.Agri-Bio informatics Promotion Research Program initiated. Bio informaticsResource and Application Facility (BRAF) is an infrastructure being provided toindustry and academia wherein grid enabled Bioinformatics Applications andDatabases are made available to research community.

Innovation Promotion/ IPR support: Under Technology Incubation andDevelopment of Entrepreneurs (TIDE) Scheme, 17 TIDE centres have beensupported at institutions of higher learning to promote technology incubationactivities and nurture the technology start-up companies in ICTE sector. SupportInternational Patent Protection in Electronics & IT (SIP-EIT) scheme initiated,42 SMEs applications supported. Two prior art search centres established. Morethan 400 IPRs that include 60 Patents have been filed, 200 obtained.

Digital Preservation: A centre of excellence for Digital Preservation has beeninitiated (e-District, e-Courts, Govt. Archives etc.)

E-Commerce: Standards for inter-operability of mobile payments developedbased on which RBI issued guidelines for mobile payments. Mobile PaymentsCertification Lab established at IIT Madras.

Communication: TErrestrial Trunked Radio (TETRA) based Digital MobileRadio, Software Defined Radio, Wireless LAN Manager, 4G Wireless standardsand simulator, Smart Antenna for Wireless Applications, Resilient Packet Ring(IEEE802.17) Technology developed.

Broadband: Efficient spectrum sensing algorithms for Cognitive Radiodeveloped for Wireless Broadband Access, Wi-Max Test Bed & Quality ofService (QOS), Broadband on Power Line/ on Cable, Ultra Wide BandTransceiver with Antenna developed.

Wireless Sensor Network: Intra and Inter Vehicular Communication, Real-Time Monitoring for agriculture, Tracking and Monitoring system using RFIDtags for disaster management in mines and Wireless Body Area Networkdeveloped for health monitoring.

Lab to Land (Media Lab Asia): ICTs for Livelihood Enhancement, HealthCare, Education, Agriculture and Empowerment of Differently abled have beendeveloped and demonstrated.

Information Technology Research Academy: A Programme for capacity andcapability Building of R&D in ICT&E has been initiated.

The detailed achievements made under each of the above mentionedareas/programme are given in the Annexure-1.

3. Review of Performance of Plan Schemes during 11th Plan Period

During the 11th Plan period, the major R&D activities carried out by DIT wereby the three R&D Groups, i.e., R&D in IT, R&D in Electronics and R&D inConvergence Communication & Broadband Technologies Group. Among thesethree Groups, there are eight Plan-Schemes under which annual budgets are

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allocated. The following table gives yearly allocation from 20007-08 to 2011-12for each of the eight Plan Schemes undertaken during the 11th Plan period:

Plan Scheme Allocations (RE) made in 11th Plan (Figures in Rs. crores)

Scheme AllocationTotal2007-08 2008-09 2009-10 2010-11 2011-12

Micro-electronics& Nano-technologyDevelopmentProgramme

29.00 35.00 79.50 100.00 100.00 343.50

TechnologyDevelopmentCouncil(incl. ITRA)

35.00 32.00 33.80 79.00 79.00 258.80

Convergence,Comm. &StrategicElectronics

25.00 22.00 22.00 25.00 25.00 119.00

Electronics inHealth &Telemedicine

18.00 13.33 13.33 11.70 11.50 67.86

Components &MaterialDevelopmentProgrammeincluding C-MET

15.00 12.50 18.50 25.00 25.00 96.00

SAMEER 25.00 27.50 38.00 38.00 42.94 171.44

C-DAC 75.00 115.00 142.00 180.00 203.40 715.40Media Lab Asia 0.00 1.00 5.00 14.30 11.30 31.60Total 222.00 258.33 352.13 473.00 498.14 1803.60

It may be mentioned that the R&D allocation during the 11th Plan was enhancedto Rs. 1803.60 Crores as compared to the figure of Rs. 824.00 Crores allocatedin the 10th Plan.

The allocation indicated above has been utilized in the various projects andprogrammes of DIT which are carried out by its own R&D societies, namelySAMEER, C-DAC & C-MET and also by various academic institutes and otherR&D labs.

The achievements against this allocation have been both highlighted anddetailed elsewhere in this report.

During the 11th Plan period, nano-technology initiatives of the Department hasbeen one of the major additions and Centres of Excellence at IIT-B and IISc arealready operational with 3 other major centers at 3 IITs are being establishedunder this funding.

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In addition, several new projects/programme were taken up in identified thrustareas of research in IT, Electronics and Convergence, Communication andBroadcasting Technologies.

During the 11th Plan period, the Technology Incubation and Development ofEntrepreneurs (TIDE) Scheme was launched for strengthening the technologyincubation activities at the academic institutions and nurturing the youngentrepreneurs. Also Multiplier Grant Scheme (MGS) was initiated to encouragecollaborative R&D between private industry and academic/R&D institutions fordevelopment of products and packages.

During the last one year, another major initiated called IT Research Academy(ITRA) has been undertaken for which the grant under TechnologyDevelopment Council has been substantially increased. Other than ITRA, theTDC budget-head also takes care of various researches funding in the areas ofindustrial electronics bio-informatics, IT emerging areas, etc.

4. 12th Five Year Plan for e- Innovation/ Research and Development

4.1 Objectives and Goals for 12th Plan

The objective of the 12th Plan is to make India a hub of Research, Developmentand Innovation in the area of IT and Electronics leading to commercialization soas to contribute in overall socio-economic growth of the country.

The goals to be achieved in 12th Plan are promoting R&D for development,commercialisation and manufacturing of products, packages and services, widenthe R&D base in the country, and creation/ utilization of R&D infrastructurewith special emphasis on innovation promotion and development ofentrepreneurs.

4.2 State of ICT in India and Challenges faced for Promoting R&D

The Indian IT industry is continuing to do very well and going up in the valuechain. The Indian telecom industry is also growing rapidly and there are about900 millions phones users in the country. But excepting for a few banking andinsurance products, India has not developed any great software product. There isvery little success in developing indigenous telecom products excepting theefforts made by companies like Tejas. Similarly, we have some companies instrategic sector but they have not developed any significant Indian products forthis sector. The electronic component and material industry is very weak, thoughwith a few exception in strategic sector. Though efforts have made in designingand developing products but excepting a few products in strategic and transportsector, filing of number of patents in nano-technology, microelectronics, andCEWiT - Centre of Excellence in Wireless Technology- (a public-privateinitiative to develop indigenous world-class Next Generation wirelesstechnology in India) leading to take over 10 percent patents in 4G wireless, mostdesigns have stayed as prototype and there is limited success in theircommercialization. Thus India has made limited impact in Research andDevelopment and continues to import all its Hardware. There are a few ITsystems companies who are mostly involved in trading and deployment.According to the recent report of Task Force on IT/ITES and ElectronicsHardware, the import bill of this sector, unless domestic manufacturing is

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enhanced, will surpass the import bill of the oil sector by 2020. According tothis report, the demand for electronics in India is expected to be US $ 400 billionby 2020. Against this, the domestic production is projected to be only US $ 100billion. Further, entrepreneurship promotion has just started in the country.Inspite of creating a few lab set up, the security knowledge and practice remainweak. Despite setting up of NIXI, India’s broadband network also remainsweak. The ICT education in the country has attained quantity and equity but thequality of education is poor.

In the above scenario, to make India a hub for research, development andinnovation in the area of IT and Electronics, there is an urgent need to appreciatethe existence of a number of other challenges, which need to be appreciatedwhile making a meaningful and practical plan for the next 5 years. These arebriefly described below.

(a) Inadequate expenditure on R&D by Government

The rate of obsolescence and emergence of newer technologies in the field ofIT/ Electronics is one of the fastest in the world. However, this also requiresa higher amount of investment in R&D. There is inadequate expenditure onR&D in the country. As per available statistics the overall R&D expenditurein the country is only 0.88% of the GDP. There has been nearly ten-foldincrease in the national expenditure on R&D at current prices from theperiod 1990-91 to 2007-08. However, this increase is only about three and ahalf times when one considers this at constant price with base as 1999-2000in the country.

(b) Inadequate spending on R&D by industry and lack of long termstrategy & high risk taking attitude by the Industry

The ratio of R&D funding by Government to that by private sector industrywas approximately 86:14 in 1990-91, which has improved to 71:29 by 2007-08. These figures are for the entire R&D funding scenario in the country.The improvement in the R&D funding by industry appears to be largely dueto higher spending in the areas like pharmaceuticals, transportation industry,defence industries, etc. R&D expenditure by IT/Electronics industry needs tobe increased further. The Report of the Task Force for Stimulating Growthof Electronics Hardware Manufacturing submitted in December, 2009 hadalso highlighted this point as a major challenge. Increasing R&D expenditureby industry with a long-term strategy and higher risk-taking attitude is agreat challenge.

(c) Inadequate skilled Manpower for R&D

Even though the availability of engineering graduates annually has increasedmanifold over the last two decades, lack of quality of a major portion ofthese graduates is a concern, which is being expressed very regularly atdifferent forums. In this situation, the problem of the R&D sector in ICTindustry is far more acute. The number of graduates going into M.Tech/Ph.Dprogrammes is quite low and, therefore, the availability of manpower fordoing meaningful research is becoming very difficult. On top of this, R&Dengineers to a large extent, do not find it a remunerating career because ofgreat differential between their career prospects vis-à-vis the managers in theindustry. If India has to become a source of new technologies/innovations,we need to produce higher number of post-graduates or PhDs in

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engineering/applied sciences and then their career path has to be charted atpar with the best paid in the industry. This is indeed a big challenge.

(d) Inadequate Infrastructure for Incubation of Technology

Unless R&D infrastructure is created for incubation of technologies, itsdeployment and pilot demonstration its commercialisation and massdeployment will not take place. Though some beginning has been made inthis direction during 11th Plan period but R&D infrastructure needs to befurther strengthened at other institutes also in 12th Plan.

(e) Collaboration between R&D and Academic Institutions and Industry

There is no institutional mechanism available for taking up collaborativeR&D projects by the R&D/academic institutions and industry. However,during 11th Plan some beginning has been made and DIT has supported largecollaborative research projects involving all the stakeholders in some of theareas e.g. Power Electronics, Automation Technologies, IntelligentTransportation System, Agriculture, Indian Languages etc. These projectshave helped in creating R&D infrastructure at identified academic andresearch institutes, skilled manpower development and establishing anational network of experts in specific fields in the country. Such endeavoursare to be encouraged during 12th Plan periods also.

(f) IPR and TOT Issues

There is need to bring in changes in IPR policy defining the IPR and royaltysharing mechanism between developing institutions, inventors and theindustry. Also the Transfer of Technology (TOT) policy should also be putin place defining clearly the terms of TOT so that technology developedthrough DIT funding is transferred to interested industry well in timeavoiding obsolescence.

(g) Inadequate manpower/infrastructure in DIT

With superannuating of large number of senior S&T officers over last fiveyears, there is acute shortage of S&T manpower both in number and domainexpertise. But there has not been fresh induction of S&T officers in DIT forseveral years now. This has adversely affected the R&D activities in DIT.Considering the present manpower and infrastructure availability with DIT,even the management of a large Electronics Development Fund (EDF) isseen to be a challenge in itself. For this purpose, creation of a separateorganization/Special Purpose Vehicle (SPV) needs to be created which cantake care of the entire work of disbursement, management and reviewing ofthe R&D fund under the guidelines provided by the Government. This willbe a challenging task for the Department during the 12th Plan period.

(h) R&D Fund Management Change required in Rules for Private Funding

If India has to emerge a dominant player in some areas of its strength, thenprivate sector industry needs to be part and parcel of the entire R&Denvironment. Even in the present R&D funding practices by the Department,mostly the entire fund goes to government organizations. An acceptablesolution is required which takes care of safety of the public money that isdisbursed for R&D to various agencies including private sector industry. Therelevant financial rules and audit mechanism in this regard may have to bere-looked by the Government and the fact that R&D is a risky job needs tobe suitably factored in the relevant rules and regulations while drawing out

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safety checks for public funding. This indeed is a big challenge, which has tobe addressed.

(i) Development & establishment of standards for emerging technologies

Deployment of technologies in field or its commercial exploitation verymuch depends on creation of standard(s). One such example case in point isthat of cloud computing. In this area though isolated development/deployment has taken place, the issue of creating a standard remains openwhich if addressed will open door for its deployment in various applications.

(j) Lack of mandatory standards for import of electronics/IT products

Indian industry has been rightly complaining about the presence of variousElectronics/IT items in the market with questionable quality at a reducedprice. This puts undue competition on the genuine manufacturers in thecountry. So there is need for bringing in mandatory standards for some of themajor items in this field and also establishing adequate test houses as perthese standards. These mandatory standards are to be evolved in consultationwith industry. For enforcement of these standards new testing centres may berequired to be created or enhancement in the capabilities of existing testingcentres in this regard is a challenge that must be met.

(k) Incentives for using indigenously developed technology

Government should consider giving incentives for deployment of solutionscreated using domestic technology. Most of the large-scale technologyconsumers of India including Indian defense, tend to procure technologyfrom outside India through technology transfers. Apart from discouragingdomestic R&D, these technology transfers are expensive and have veryrestrictive contractual conditions. This is not to say that we adopt axenophobic mindset to technology but a more balanced evaluation ofdomestic versus imported technology is definitely required. There areinstances when genuine technologies produced in the country are made toface undue competition as the tenders are drafted demanding products testedas per some non-Indian standards.

4.3 Implementation Plan and Institutional Framework for 12th PlanIn order to ensure that there is significant change in R&D scenario in thecountry, the Sub Group on e-Innovation/R&D deliberated on the various aspectsand recommended the following implementing plan and institutional frameworkfor 12th Plan:

(a) Strengthen/ Create schemes

The collaborative research involving academic/R&D institutions, industryand end users is to be further strengthened. Also innovation in productdesign, development of value added products to be encouraged. The supportto incubating start-ups and SMEs is required to be further strengthenedduring 12th Plan. The funding for these activities to be further increased.

(b) Strengthen Linkages

Government support for pre-competitive research with academics-industry,enhancement of commercialisation of technologies, specific linkages ofDIT’s R&D Societies with academics and industries is also to be

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strengthened. There is need to figure out a way for Government funding ofprivate companies for R&D.

(c) Capacity Building

There is a need for creation of enabling R&D environment in Tier-II andTier-III institutions and setting up of centres of excellence in identified areasin the country

(d) Infrastructure creation

New R&D infrastructure at Tier-II and III institutions needs to be created,wider utilization of already existing centres and setting up of design studiosis to be taken up during 12th Plan.

(e) Centres of Excellence

DIT should strengthen and support R&D Centres of Excellence with IPRand translational R&D focus and Government should provide funds forglobal patenting

(f) Support Entrepreneurship

Although beginning has been made by DIT with launching of TechnologyIncubation and Development of Entrepreneurs (TIDE) Scheme. But it isrequired to set up focused program to provide seed and start up capital forventures undertaking product development. Also setting up of Venturefunds to fund start-ups beyond seed stage is required.

(g) Encourage Made in India Goods

There is need to encourage use of Made in India goods in the countryagainst the imported products. For this Government should have some short-term hit objectives by giving procurement preference and including made inIndia products as part of bilateral trade agreements with other countries.

4.4 Proposed Major programme for 12th Plan

During its deliberations, the Sub Group discussed and identified key thrust areas andmajor programmes to be pursued during the 12th plan period. The key thrust areas arelisted in Annexure-2. The major programmes proposed are outlined below.

(i) Innovation Promotion and Nurturing Entrepreneurs

To devise strategies to support technology start-up companies and topromote innovation in academic and R&D institutes leading to ecosystemfor product development, the existing Technology Incubation &Development of Entrepreneurs scheme will be scaled up in terms of thenumber of incubation centres and scope of funding at academic institutesand other scientific/R&D organizations with active involvement at all fourstages of Innovation i.e. idea stage, innovation phase, incubation phase andBusiness acceleration phase. The broad objectives of the proposed schemewill be as follows:

Specific thrust will be on facilitating out-of-box thinking andcultivating Risk-taking attitude in academic institutes

To nurture technology innovation and enable local development ofElectronics and ICT products and packages in the long run

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Provide financial support for nurturing the techno-entrepreneurs as wellas for strengthening the technology incubation activity at theinstitutions

Attract risk capital and create jobs

The broad contours of the proposed scheme will target the following:

To provide support to 50 centres for selection of 20 new studentinnovative ideas by competition per centre.

To provide support to 40 centres each with a grant of Rs 10 crore forsupporting 20 innovations each. This is aimed towards creation of about800 IPs.

To provide support to 30-40 centres with a grant of Rs 10 crores forgrooming 10 IP based ventures at each centre. The aim is to have 300-400 IP based ventures.

To provide support to 10 centres with a grant of Rs 50 crores forgrooming 10 IP based ventures. This aims at creation of about 100global ventures.

Promotion of Virtual Incubation Centres

Setting up National/regional facilitation centres for training ofIncubates and Incubation Managers

Setting up innovator Laboratories

Multiplier Grants Scheme

Multiplier Grant Scheme is to encourage collaborative R&D betweenindustry and academics/ R&D institutions for development of products andpackages. The scheme aims to strengthen industry/ institute-linkages,encourage and accelerate development of indigenous products/ packages andbridge the gap between R&D and commercialisation.

The objectives of the MGS scheme are:

Establish, nurture and strengthen the linkages between the Industry andInstitutes;

To promote industry oriented R&D at institutes;

To promote R&D for design led manufacturing of products, packagesand services; and

Bridge the gap between R&D / Proof-of-concept andcommercialisation.

(ii) IPR Promotion Programme

To fully realize the benefits of the concentrated effort on R&D it is essentialthat it be translated into IPRs. Also, it is very essential that these be furtherleveraged to realize economic benefits out of the same. The followinginitiatives are envisaged:

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A comprehensive IPR promotion programme covering education,awareness creation, related technology development and support toSMEs & start-ups may be taken up.

Also, a suitable mechanism to provide funds for global patenting toResearchers, SMEs and Start-ups may be taken-up for implementation.

IP Exchange: A robust framework to trade, buy and cross license IPRson a reasonable valuation model at a global platform be initiated

Workout IPR Policy measures, facilitation and framework to nurturetechnology incubation.

(iii) Next Generation Computing Systems

Computer hardware is changing & diversifying faster than system software.Availability of Multi-core processors (100+ cores per chip) will mark a majorqualitative change in future computer system design. The architecturalchanges in multi-core processors will require major changes in the way thesoftware is developed. Upcoming Cloud environments will be primarily builton top of multi-core technologies. High performance computational clustersbuilt on multi-core microprocessors will offer unprecedented quantities ofcomputational resources. Keeping this in view the development of thefollowing is proposed:

(a) India Microprocessor Development Initiative

Computer hardware is changing and diversifying faster than systemsoftware. The era of programming with single processors has ended andprocessors’ clocks have stopped getting faster. Including multiple coreson a single chip has become the dominant mechanism for scalingprocessor performance. The number of processor cores which fit into asingle chip microprocessor is rapidly increasing. This decade will bringsingle chip microprocessors containing hundreds or even thousands ofcomputing cores. Tighter interaction between software and underlyingmulti-core hardware is required to build scalable and portableapplications with predictable performance and higher power-efficiency.

The development of India Microprocessor architecture, right fromscratch, is very essential for India to gain technological leadership inhardware in the long term. Currently, the IT infrastructure, computingand communication systems are based on devices/chipsets designed anddeveloped by companies outside India. The need for India to possessindigenously designed and developed microprocessor architecture andplatforms with zero encumbrances has stemmed from the fact of possibleselective denial of technology, long-term technology sustenance andobsolescence, customization, security risks, secrecy and commercialaspects. Over the past three decades, the usage of microprocessors havebeen growing rapidly in every field and the development activity needs toconsider this wide spectrum of requirements ranging from low-endembedded processor to a high performance processor. It is very crucialfor India to have its own state-of-the art design for India Microprocessorconsidering the size and volume, and the business expected to grow inthe years to come.

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Detailed processor technical requirements will have to be prepared basedon the association with probable end users in the form of requirements,recent research trends, technological advancements and sustenance. Inparallel with the design and development of the hardware architecture forthe India Microprocessor, the software tool chain viz. operating system,compiler, assembler and debuggers will have to be designed anddeveloped for the platform.

(b)Operating System Development Initiative

System software will have to change to manage resources effectively onmultoicore systems while decomposing and rationalizing the systemsoftware function to provide more reliability and manageability. Makingoperating systems scale, designing scalable internal operating systemdata structures, and managing these growing resources will be atremendous challenge. Contemporary Operating Systems designed to runon a small number of reliable cores are not equipped to scale up tohundreds of cores. The way that an operating system manages hundredsor more processors is so fundamentally different than the manner inwhich it manages one or two processors that the entire design of anoperating system must be rethought. How to distribute computationsacross multiple cores is a hard problem.

The advent of multicore microprocessors marks a major qualitativechange in computer system design, and one for which operating systemswill have to undergo major restructuring. General-purpose computeroperating systems that have not fundamentally changed since system andapplication software separated with the advent of time shared computersin the 1950s will change as much as development tools. Multi-processorsystems have been in use for many years, but have been constrained tolow numbers of processors, with the bulk being two or four processorsystems. One of the major differences between desktop and servermultiprocessor systems of the past and multicore microprocessors is thatin the past the number of processors has stayed constant, in the 2-8processor range, from generation to generation. In order to address theexponential increase in cores, multicore operating systems will have toscale in all aspects.

The newest classes of computing hardware, multi-core and cloudcomputers, need new operating systems to take advantage of theincreased computational capacity and simplify user’s access to elastichardware resources. The challenges of designing an operating system formulti-core processors are shared with those for designing OperatingSystems for current-day cloud computers. The common challengesinclude scalability, managing elasticity of demand, managing faults, andthe challenge of large system programming.

Cyberattacks are increasing in frequency and impact. Adversariesseeking to disrupt the nation’s critical infrastructures are driven bydifferent motives and view cyberspace as a possible means to have muchgreater impact, such as causing harm to people or widespread economic

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damage. There is a need for increasing the security of systems, whetherthey are used in defense, government, critical national infrastructure, orcommerce. We must strive to defend our current systems and networksand at the same time attempt to get ahead of our adversaries and ensurethat future generations of technology will position us to better protect ourcritical infrastructures and respond to attacks from our adversaries.Government-funded research and development (R&D) must play anincreasing role to enable us to accomplish this goal of national andeconomic security.

Application-space access control and cryptography cannot providemeaningful security without a secure operating system. Frontier researchactivities are essential for such fundamental redesign of the operatingsystem to make it more robust and secure. High robustness implies themost confidence that is realistic for a real system, even when exposed toa motivated attacker that can devote considerable resources toward asuccessful compromise. For this, the prototype must be subjected toheavy fault-injection and penetration testing to see how it stands upagainst vulnerability attacks. Nowadays many security attacks arelaunched against the vulnerabilities in the implementation of securityfunctionalities. It is important that the developers perform vulnerabilityanalysis, conduct risk-based testing and penetration testing, and thensubmit the reports to the evaluators as evidence. The omission of certainrisks or threats may lead to incomplete coverage of vulnerabilities.

(c)HPC Initiative

HPC plays an important role in both scientific advancement andeconomic competitiveness of a nation because it is a powerful tool foraccelerating a nation’s R&D programs by increasing the productivity ofscientists and researchers. It enables scientists and researchers to producescientific and industrial solutions faster, less expensively, and with higherquality than traditional theory and experimentation alone. It isextensively used in designing vehicles and airplanes; designing massivestructures like high-rise buildings and bridges; discovery of new life-saving drugs; discovery and extraction of new energy sources like oil andnatural gas; producing the weather forecasts for daily activities and severweather conditions like tsunami and cyclones; and many more. HPC,therefore, is seen as a powerful tool of a nation to compete with othernations. This is exactly the reason why today many nations are vying forHPC leadership in-spite of the fact that HPC initiatives of a nation stillneed to be fully government supported.

International scenario of HPC systems and technologies is well depictedby the various technology roadmaps towards achieving Exaflop computepower by 2018 made by the countries like US, Japan, China and fewmore from Europe. This is reflected in Top500 list of supercomputers ofthe world announced every six months. It is evident from the analysisthat India’s HPC share is merely 0.8% compared to 54% of US, 8% ofChina and around 5% each of Japan, France and Germany. This yearChina has leapfrogged and produced a No.1 system in the world. This

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progress of China is attributed to meticulous national planning at thehighest level with committed national funding of several billion dollars.

It is a well-established fact now that countries that do not pursue HPCseriously may continue to miss out on its benefits for driving innovationsand competitiveness, and will continue to lag behind those that pursueHPC. Hence, India should continue to build higher and higher computingpower systems to keep India active in the International HPC community.The world supercomputing scenario has briskly marched from GigaFlopto TeraFlop to PetaFlop systems. Major players in HPC are now workingtowards Next Generation ExaFlop systems (computers that can perform1000,000,000,000,000,000 mathematical operations per second). Thecurrent major players in the Exascale supercomputing race are US, Chinaand Europe.

India requires state-of-the-art supercomputing systems and facilities to docutting edge R&D in their respective domains. These domain areasinclude - Atmospheric and Environmental Science, Bioinformatics,Earthquake Engineering, Computational Fluid Dynamics, GeophysicalApplications, Computational Materials Science, Signal, Image and VideoProcessing (SIVP), and many new challenging areas that may come-upwith time.

Before embarking on Exascale research, India will have to build amachine and facility that can provide a sustained petaflop performance inbenchmarks and applications. The petaflop system will act as a test-bedfor carrying out advanced research for building Exascale systemhardware, software and applications. It will also serve as a training test-bed to support industrial and academic users in the petascaling andexascaling of their HPC applications.

Simultaneously with building the petascale system and facility on anational knowledge network, India needs to launch its Exascalesupercomputing mission as early as possible to reap the followingbenefits: Attain global leadership in scientific and engineering research for

India’s scientific advancement and economic competitiveness.

With India’s proven expertise in software, pursue global leadership inrewriting software codes required for petascaling and exascaling ofHPC applications codes. This is a major business opportunity forIndian ICT industry.

With developed R&D expertise in future HPC technologies, pursueglobal leadership in providing HPC training and education. Theworld will badly need this type of service in near future and this canbecome a major business opportunity for India.

Pursue global leadership in providing future HPC solutions as HPCmarket is increasing and undergoing major transformation.

The Exascale mission will provide a sound foundation to India forbuilding several disruptive innovations in the 21st century and gain

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global leadership position. It will also seamlessly integrate allnational ICT mission programs.

(d) Cloud Computing Initiative

Cloud computing refers to both the applications delivered as servicesover the Internet and the hardware and systems software in the datacenters that provide those services. If cloud computing is to deliver onits promise, the ease of using a cloud computer must match that of acurrent-day multiprocessor system. Upcoming cloud environmentswill be primarily built on top of multi-core technologies. Future cloudcomputing data centers using multi-core platforms will benefit fromincreased computing power, reduced rack space and energyrequirement and will be highly resilient to failure.

Cloud computing offers the government an opportunity to be moreefficient, agile, and innovative through more effective use of ITinvestments, and by applying innovations developed in the privatesector. If an agency wants to launch a new innovative program, it canquickly do so by leveraging cloud infrastructure without having toacquire significant hardware, lowering both time and cost barriers todeployment. Government organizations will be able to measure andpay for only the IT resources they consume, increase or decrease theirusage to match requirements and budget constraints, and leverage theshared underlying capacity of IT resources via a network. Resourcesneeded to support mission critical capabilities can be provisionedmore rapidly and with minimal overhead and routine providerinteraction. The shift to cloud computing for e-governance can help tomitigate the fragmented data, application, and infrastructure hostingissues associated with federated organizational and funding models byfocusing on IT services as a utility.

Standards will be critical for the successful adoption and delivery ofcloud computing. Standards are also critical to ensure clouds have aninteroperable platform so that services provided by different providerscan work together, regardless of whether they are provided usingpublic, private, community, or a hybrid delivery model. IEEEWorking Groups P2301 and P2302 are developing comprehensivestandards that will address migration, management, andinteroperability among cloud-computing platforms. Data migration isa major problem in cloud computing and customers cannot easilyextract their data and programs from one site to run on another.

Although, cloud computing is revolutionizing how informationtechnology resources and services are used and managed, therevolution comes with new security problems. Existing processes andmethods for incident handling are geared towards infrastructures andoperational models that will be increasingly outdated by cloudcomputing. Cloud infrastructure commonly relies on virtualization.

While a large amount of research has focused on improving thesecurity of virtualized environments, existing security techniques donot necessarily apply to the cloud because of the mismatch in securityrequirements and threat models. The cloud users do not want to trust

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their essential data to be stored on a machine on which they have nocontrol.

Cloud computers and multicore processors are two emerging classesof computational hardware that have the potential to provideunprecedented computing capacity to the average user. Highperformance computing (HPC) clusters will also benefit frommulticore computing. A cluster of multicore computers will becommonly used as an efficient computational platform in the nearfuture. Microprocessor design is a very challenging task and also astrategic technology for the country. Considering the challenges ofmulticore processors, cloud computing and security requirements ofthe systems it is being proposed to initiate frontier research activitiesto develop tomorrow’s computing systems from ground up. A veryimportant part of this research project is first building a realisticworking prototype to show that the research ideas developed work inpractice and demonstrate its utilities. The multicore architectureprocessor design will be a part of the India Microprocessor initiativeand will be implemented on FPGA initially. Once the design isfinalized, the fabrication part of the chip will be undertaken. Thetarget for the XIIth Five Year Plan product will be to develop anindigenous trusted server/workstation for cloud computing data centreapplications which will help in strengthening national criticalinfrastructure against cyberattacks from potential adversaries.

(iv) Free and Open Source Software InitiativeThe Department has taken major initiatives through R&D, setting upof resource centres, support & training for development of an eco-system for promotion & adoption of Free & Open Source Software inthe country. India’s strength in Information Technology can beutilized to develop products using FOSS which will help in bridgingthe digital divide with significant cost savings and facilitating thecreation of a knowledge society. Indian industry/SMEs can benefitfrom the liberal licensing norms of FOSS which enables softwares tobe freely modified and distributed. During XII Plan, Research anddevelopment will be taken up in the area of FOSS based architecturesand applications in various sectors alongwith capacity building,human resource development, expanding the support network andtaking measures for incresaing FOSS adoption in various states/UTs.Bharat Operating System Solutions (BOSS) will be upgraded withnew features and technologies and efforts will be made for itsdeployment in various sectors including education, government and e-governance services based on open standards.

(v)BioinformaticsKeeping in view the global trends and the global opportunities, it isproposed to strengthen Country position in the field of Bioinformaticsby investing in specific infrastructure, human resources, and fosteringstate-of-art research in the 12th plan period. Multi institutional(Academic) , multi disciplinary advanced centres for Bioinformaticsare planned to be set up to foster collaborative research inBioinformatics by integrating the isolated competence available acrossvarious academic institutes. The Advanced Centres would have

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specific goals to be met collectively by the Institutes with focus ondeveloping and applying computationally intensive techniques e.g.,pattern recognition, data mining, machine learning algorithms, to fieldof sequence alignment, gene finding, genome assembly, drug design,drug discovery, protein structure alignment, protein structureprediction, etc. Also HRD in Bioinformatics is planned for skillinculcation efforts in areas such as (i)Application of parallelcomputing ito Bioinformatics applcations(ii)Analysis of NextGeneration Sequencing data using computational methods(iii)Application of cloud computing to Bioinformatics applicationsetc. It is planned to support various research projects employingICT methodologies like Statistical Machine learning tools, Geneticalgorithm, artificial intelligence etc. to problems of protein folding,gene expression data analysis etc. ands also to provide infratructurefor Bioinformatics Research

(vi) Digital Preservation

The second decade of the 21st century dawns, predictions of globalinternet digital transactions reach as high as 667 Exabyte per year by2013. Based on this prediction, traffic levels might easily exceedmany zetabytes (1021 bytes, or 1,000 exabytes) by the end of decade.There is a need to consider the nature of information being transferred,how it is encoded, whether it is stored for future use and if it will bealways possible to interpret as intended. The long tern usability ofdigital information throughout the changing technologies and storagemedia is the main challenge. Following activities are proposed in thisarea:

Establish the National Digital Preservation Infrastructure Digital Preservation Audit and Certification Long Term Usability of Digital Data and Sustainability

(vii)Ubiquitous Computing Programme

After the success of Ubiquitous Computing Programme in the 10th

Plan, the next phase of this programme in the 12th Plan would lead toadvanced research and applications development, publishing ofresearch papers, development of prototypes, models for understandingthe complexity, development of utilities and tools for softwaresystems and patenting of products / systems. The following would bethe objectives of this national programme:

Up scaling Ubiquitous Agriculture Applications

Investigation of potential applications in agriculture, byintegrating Wireless Sensor Network (WSN) data with RemoteSensing (RS) data from Satellites

Integrating the Internet and Mobile Networks with Low powerSensor

Research in Origin – Destination (OD) for Urban TransportationEnhancements (ROUTE)

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Building Secured Cloud based Intelligent Campus EnvironmentUtilizing Ubiquitous Technologies

Distributed Context Reasoning and Management in Large ScaleEnvironment

Context Aware Services for Mobile

Recognition of Human Activities in Video Sequences

Ubiquitous Healthcare ( to be jointly developed with C-DAC andother collaborating institutes)

Wireless Multimedia Sensor Network

Indoor Location Tracking using Ultra-wide band

Development of Aware Home Technologies

Design and Development of Wireless Modules for Body AreaNetworks (BAN) and Ubiquitous Computing

Wireless Systems for Body parameters monitoring

The National initiatives already taken up by DIT’s C-DAC centresand other academic and R&D institutions in the field of UbiquitousComputing had led to development of subsystems and components forUbiquitous Computing systems and applications. Further the effortstowards this technology development in the 12th Plan would result inimplementation of different application areas such as: WSNArchitecture and Decision Support Suite for Agriculture, NationalLevel 6LoWPAN Knowledge Centre, Correlation between WSNweather data and Remote Sensing data, Origin Destination Matricesfor Urban Transportation, Intelligent University Campus, Devices andSystems for Wireless Body Area Networks and sensor networks,WSN Platform using 802.11 b/g/n, Aware Home comprising numberof Smart artefacts like Smart Bed, Smart Kitchen, Activity BasedLighting and Interactive Mirror, Context Aware Services for mobileetc.

(viii) National Programme of Perception EngineeringPerception engineering is an emerging field of research wheretechnology developments are motivated by the human perception andcognition based models and algorithms. Various psycho-acoustical,psycho-physiological, neuron-physiological observations can be usedfor the development of engineering systems, which can meet humanrequirements in most efficient way. The following could be theobjectives of this national initiative:

To initiate research programmes with multi-institutionalcollaboration integrating complimentary expertise

Generate know-how for new information & communicationtechnologies motivated by the models of perceptual & cognitiveprocesses

Multi-disciplinary investigations into the fundamental issues ofPerception and Cognition

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Development of models of perceptual and cognitive processes fortechnology generation–Establishment of a Centre for PerceptionEngineering and Cognitive Sciences

Develop products based on Cognition and Perception

The initiatives in the inter-disciplinary field of Perception Engineeringcan lead to technology break-through in different application areassuch as - Education, Medical, Surveillance-Security and Strategic,Societal applications, Entertainment, Environment and QualityControl, Reconnaissance and Disaster Management etc. In addition tothis, it could also lead to significant development in Assisted andEnhanced Living encompassing the areas like Vision, Audio &Speech, Taste & Smell, Hap tics, Sensor motor, Sensory Integration,and Cognitive Robotics. Further, multi modal rendering and multimodal interaction can open-up a new world experiential environmentwhich can play a critical role in tele teaching, tele-medicine as well asentertainment.

(ix) Information Technology Research Academy (ITRA): ITRA programmehas been initiated to Build Competitive Advantage for the Country in thearea of IT and Electronics, attract high quality academics/professionals tolead research activities, Build IT R&D groups, network them and connectthem to industry and society and produce high quality Ph.Ds for industry,R&D labs & academic institutions

(x) Media Lab Asia: Media Lab Asia will continue pursuing certain highorder research areas in social sector such as Health Care, LivelihoodGeneration, Education and Empowerment of differently abled as well as e-Governance. Projects that will be pursued include the following:• Large scale deployment of CAD for craft

• Deployment of Punarjjani- Integrated assessment tool for MR children

• Enhancement & Deployment of eGalla –Retail Management Systemand ERP solution

• Development & deployment of District Level Integrated e-Solutionsfor Healthcare (Telemedicine + HMIS +EHR)

• Deployment of Shikshan™ - An intelligent tutoring system

• Deployment of Pre-primary Teachers Resource Kit

• Deployment of Sanyog- An iconic interface system for speech andneuro motor disorder

• Development & pilot deployment of rural content creation system

• Development & pilot deployment of life skill development of tribalcommunity

• Development & deployment of eWaste management portal

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(xi) Smart Grid

Smart Grid is a type of electrical grid is cconsidered to be an EnergyInternet with increased efficiency, availability, response and security.Salient features of the Smart Grid include:

Dynamic optimization of grid operations and resources with full cybersecurity

Deployment and integration of distributed resources and generationincluding renewable resources

Deployment of smart technologies (real-time, automated, interactivetechnologies) for metering, communications for grid operation/ statusand Distribution Automation

Integration of smart appliances/ consumer devices

Deployment and integration of advanced electricity storagetechnologies

Major impact is in reduction of peak demand

The following would be the important technology components of SmartGrid:

Renewable – solar to smart grid, wind to smart grid

Energy storage and retrieval

Power line carrier communication

Smart metering system

Substation automation: IEDs, SCADA

Wide area monitoring system: PMUs, PDCs

Home Automation: Home Area NetworkSoftware Components: Middleware, Cloud enabled data analysis, self-aware systems, power system analytics and simulations

Sub-Group, however, suggested that it is important that potential impact ofsmart-grid projects be fully worked out prior to funding and evaluationcarried out based on impact made.

(xii) Electronics R&D

a) Nano-technology Development

The Department in the 11th Plan has taken steps to build institutionalcapacity and infrastructure for R&D in the field of nano-technology. Thefocus had been on human resource development in the area of nano-electronics for making India a front-runner in this revolutionary area withall pervasive applications. Towards this, the Department had initiatedmajor projects at leading academic / research institutes in the country.However, there is a further need to give impetus to this programme. In 12th

Plan the following may be undertaken:

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– Centres of Excellences created at IISC Bangalore & IIT Bombay to befurther augmented through a phase-2 programme.

– Emphasis on product development, high-end research on processdevelopment and incubating start-up companies

– Support to other on-going major Centres (IIT Kgp, IIT D and IIT M).Creation of few more major Centres in some of the new IITs or someTier 2 institutions.

– Enhancement of Indian Nano-electronics User’s Programme

b) Microelectronics Development Programme

RF and analog mixed signal technologies

– Embedded systems

– EDA tools and related software

– VLSI, Processors (Micro, RISC, ASP etc.)- Design/Fabrication, Characterization, Testing and modeling etc.

VLSI, Processor (Micro, RISC, ASP etc.) and Device

– Design & Fabrication, Measurements of parameters,Characterization, Testing, Modelling etc.

• Development of RF and Analog Mixed Signal Technologies

• Development of EDA Tools and related software

• Embedded Systems

• Development of microstructures including Micro-ElectroMechanical Structures (MEMS) – Micro sensors, Detectorsetc.

• Integrated MEMS and VLSI designs solutions

Process Technologies including development of related semiconductormaterials

c) Electronics Materials & Component Programme

Components and materials are the backbone of Electronics andInformation Technology (IT) Hardware Sector. Electronic materialsare at the core of design, development of electronic componentmanufacturing, while electronic components are the heart of electronicequipment hardware. Realising the importance of this area, there is aneed to initiate programmes in the following areas:

– Integrated Electronics and 3D nano-scale packaging

– Nano-scale materials and composites.

– Ultra-high purity materials and compound semi-conductors

– Materials for renewable energy,

– Actuators, Sensors

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– Photonics Applications (Solid State lighting, Bio-Photonics, etc.)

– Technologies for electronics waste management

– Testing and certification facilities for RoHS etc.

d) Industrial Electronics

After successful completion of National Mission on Power ElectronicsTechnology (NaMPET) Phase-I, there is a need to continue thisprogramme in Phase-2. In Phase-2 emphasis may be on addressingmajor applications like Solar Inverters (from roof-top to 1MWinstallation), Smart Controllers for High power applications, HV solidstate cross bar system required by Strategic Departments, Centre ofExcellence for simulations of Power Electronics/ Power Systems andMicro-integration/ packaging techniques.

Further, the building block technologies developed under AutomationSystems Technology Center (ASTeC) project during 11th Plan needs tobe deployed in the field with collaboration with industry. Also,technologies developed on Intelligent Transportation Systems (ITS)and Agri-electronics to be further augmented and demonstrated infield.

e) Medical Electronics & Health Informatics

There is a need to continue with the programme on development ofssuitable technology/ products for mass applications in medicalelectronics, Decision Support Systems (DSS) for hospitals, On-linecourseware for health-informatics etc. In addition to this, deploymentof Electronics Health Records technology in consultation with Ministryof Health and Family welfare also needs to be taken up. DIT shouldinitiate programmes on Futuristic technologies like Neuro-technologyetc

f) RF/ Microwave Electronics

The RF / Microwave Electronics is an important area particularly forstrategic sector, where there is a pressing requirement to initiate /continue on-going programmes. There is, thus, a need to continue /initiate following programmes:

– High power systems for applications in medical/ industrial sectors,food processing, high power transmitters.

– Computational electromagnetic, Antenna/ Circuit Applications,Atmospheric instrumentation.

– Millimeter wave (MMW) RADAR for security applications, MMWimaging systems and MMW components for strategic applications.

– Terahertz (100 GHz- 10THz) Technology (security applications).

– High energy LINAC Technology with electronic portal imagingsystem.

– Applied research in EMI/EMC etc.

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(xiii) Convergence, Communication and Broadband TechnologiesProgramme

The R&D projects proposed to be undertaken in 12th Plan will include thefollowing areas:

Next Generation Communication & Convergence technologies(Software Defined Radio, Cognitive Radio including White spaces,Cooperative Communication, Cloud Computing/Communication overCellular Network, Mobile Adhoc Network, Research in ‘5G’)

Wireless Broadband Access, Femto Cell, 60 GHz Wireless Networkand UWB

Green communication and scavenging energy from ambient EMradiation.

Wireless Sensor Networks- Communication algorithms, protocols,RFID applications Wireless Body Area Network

Convergence of wired/wireless networks, fixed mobile convergenceconsumer premises equipment (CPE) and converged access devices.

Wireless Technology deployments for rural connectivity (LTE-A,WiFi, WiMax, Amateur radio)

Development of IP based products/services & Low Cost BroadbandInternet access devices and net appliances, IP Multimedia subsystem,Digital Video Broadcast, IP Broadcast

ICT applications in strategic/ mission mode activities with focus onsafety, security, surveillance and navigational aids weather forecast

Internet of things

(xiv) Leveraging Mobile Infrastructure

With the proliferation of mobile communication, two-way communicationhas been made possible for masses. It is estimated that more than 500million people have mobile phones. However, for effective and efficientuse of this technology there is a need to promote development of wholehost of applications using mobiles form financial services, e-governanceservices, health services, Agri-services, education, job-search etc. Inaddition to this, there is a need to promote voice-based authentication andtransactions for inclusive development thereby enabling illiterate and semi-literate people to have access to this service may. Also, Local LanguageStandards for mobile phone need to be evolved and to be made mandatoryfor all mobile phones in India

(xv) System on Chips

System-on-a-chip or system on chip (SoC or SOC) refers to integrating allcomponents of a computer or other electronic system into a singleintegrated circuit (IC) chip. It may contain digital, analog, mixed signal,and radio frequency – all on a single chip substrate. A typical application isin the area of embedded systems. Realizing India’s strength in Embeddedsystems and IC design a programme to promote devices and technologies

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in the area of SOC will be pursued keeping in mind the focus of promotingelectronics manufacturing.

(xvi) Initiative Focussed for students

To ensure that a large resource of employable technical manpower in thearea of hardware design is available in the country, new initiatives’particularly targeted to student community in the following areas need tobe initiated:

Hardware board fabrication

Under this programme grants for students could be provided to get theirdesigns converted into boards on turnkey basis. Also, appropriate tax-incentive may be given to such companies, which source allcomponents and fabricate prototype boards.

Open Hardware

There is a need to initiate this programme, under which hardwareboards may be standardized and made available to educational institutes/startup companies on demand.

Shared IC fabrication

To encourage IC designing in the country, there is a need to initiate“Shared IC Fabrication” programme under which ICs designed by thestudents could be fabricated with support from DIT. This programmecould be extended to start-up companies, SME (at subsidized cost) andalso to large companies (at cost).

Promote FPGA design at institutes

To widen the IC Design / hardware development base in the country,there is a need to set up Field Programmable Gate Array (FPGAs) Labsat Tier-II & III institutes where students will be encouraged to takeprojects in ICs designing using FPGAs.

(xvii)Quick Hit Initiatives-Short Term R&D

To demonstrate success and commercialization in the short term to kick-start a positive reinforcement cycle that motivates industry, policy makersand the market for taking greater strides the following initiatives need to betaken:

– Identify products, where India could attain self-sustaining position inabout 2 years. Need not be futuristic, but have immediate applications.

– Should be primarily led by industry with proven track record inproduct commercialization

– Identify 3 to 4 Research Labs and industry with proven credentials todevelop such products and commercialization on a Mission Modeapproach

– DIT could take a lead role to ensure handholding and support foradoption of new products

– Ear-mark R&D funds for Quick-hit Initiatives

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(xviii) Electronics Development Fund

As per the report of the Task Force on IT/ITES and electronic hardware,the import bill of this sector, unless domestic manufacturing is enhanced,will surpass the import bill of the oil sector by 2020. Thus there is a needfor promoting and developing electronics and telecom R&D, IndianIntellectual Property Rights (IPR) and manufacturing within the country.This could be done through a dedicated ‘Electronic Development Fund’with a corpus of Rs. 5,000 crores for Innovations in Electronics &Telecom R&D, IPR and Product development. Though the finer detailsof this scheme would need to be worked out but the ElectronicDevelopment Fund could include Innovation fund, R&D fund, Seedmoney fund etc. A body having representatives of government, academiaand industry may manage the fund. There will be a need to set up aninstitutional mechanism for management of this fund. The followingcould be the Institutional Framework of EDF:

(xix) Facilities and Programmes

Following facilities and programme are needed during 12th Plan:

Create some Microwave and micro-sensor fabrication facility

Create / promote setting up of public / private test centres aroundacademic institutions

Promote Open patents: so that ideas are registered.

Promote Fabless companies from India.

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(xx) Launch Big Projects

DIT may launch big demonstration projects in the following areas:

• Use of white spaces for Communications: A demo project on use ofwhite spaces (the frequencies allocated to a broadcasting service but notused locally) for Communications may be taken up.

• Solar Village: A big project on Solar Village with advanced electronicstechnology components may be launched to demonstrate the benefits in thecountry, as renewable energy is the way of the future. It's inherentlyefficient, with no losses in long-distance transmission. It taps into sourcesof energy that are already there and will never run out. And solar, wind andmicro-hydro technologies are vastly less polluting than any other availablesources of energy.

• Indian Satellite phone (complete Indian design): There is need forinitiating a national project on design and development of India’s SatellitePhone, which could be used by all users who travel, work or live inmountains, oceans, forests, rural areas, or even in cities.

• Full-fledged smart grid pilot with a utility: In India the electrical gridstoday account for around 27% of transmission and distribution losses. Thisinadequacy could possibly become an obstacle to the country’s progress inthe years to come. Therefore there is urgent need for introducing smartcomponents in the Indian power grid. This may be done through a largepilot project on full-fledged Smart Grid with a utility so that benefit of theadvanced technology could be demonstrated.

4.5 Overall Recommendations

The recommendations of the Sub Group on e- Innovation/R&D are given in twoparts- one concerning technology and other is related to policy issues to belooked into by the Government.

Recommendations on Technical Issues

1. Primary strength of Indian R&D organizations is in developing systems.Therefore R&D activities need to be directed primarily towards design andIPR creation for various systems in the field of Electronics/IT. Governmentmay also provide support to core R&D in a few niche areas.

2. In the field of components, our strength seems to be in IC design area. Thisstrength must be leveraged further for creating specific application orientedICs for applications such as telecom, industrial electronics, security etc.DIT should support procurement of FPGA design systems in tier – 2institutions, so that students can be trained in the area.

3. To enable a culture of hardware design from the college level itself, DITmay support at least 5 suitable hardware fabrication houses (private orpublic) at major cities. The students at the nearby academic institutes andstart-up companies/SMEs around the place can avail this facility for gettingtheir small fabrication requirements done at low costs.

4. Similar to the above, there is also need for encouraging setting up of thestandard design houses, who could supply standard boards which arerequired in modern day hardware design.

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5. DIT should support projects / start-ups working on developing applicationson mobile phones/ tablets and and enable commercializing them.

6. DIT may set up a suitable council comprising of members from R&Dinstitutes, strategic departments and industries to review the current statusand recommend future activities to be taken in the field of RF/ Microwaveincluding all aspects like teaching, R&D and commercialization. Thisshould include exploration for the need for creation of a specific Centre forMicrowave Semiconductor Devices.

7. DIT may establish a centralized arrangement for fabrication of chip designsmade by various SMEs/ Start-up companies or students (Prototypingservice).

8. Special programme may be undertaken to develop certain products requiredfor sectors like Telecom, Industrial Electronics, Medical Electronics etc. asshort term R&D to be ‘quick hits’ in commercialization to motivate theindustry, policy makers & the markets for greater strides.

9. The special manpower development programme in VLSI design needs to becontinued with enhanced scope & broader objective to include Chips toSystem design capability in certain chosen application domains.

10. R&D in Sensor Technology has wide applications. This needs to bepromoted and specifically by setting up a Centre of Excellence.

11. DIT may take a catalytic role to synergies various initiates in MEMsdevelopment by various agencies in the country to assist the researchers forrealizing their prototypes and building systems around these.

12. Considering the achievements of the various R&D schemes of DIT duringthe 11th plan, it is recommended that all these schemes be continued during

the 12th plan also in addition to a few more new schemes arising out of the

12th plan proposals.

Recommendations on Policy related Issues

13. A separate Electronics Development Fund may be created to incentivizeR&D where Govt. and Industry bodies are the stakeholders.

14. A comprehensive IPR promotion programme covering education, awarenesscreation, IP exchange, related technology development and support to SMEs& start-ups may be taken up.

15. Primary thrust to be given for innovation promotion by providing financialsupport to start up companies.

16. Government may put in place a preferential procurement policy toencourage manufacturing of electronic/IT products with Indian intellectualproperty to provide necessary market pull.

17. To develop a holistic approach for funding socially relevant R&D projectsin Public Private Partnership (PPP) modes with the participation of privatesector R&D, a certain percentage of R&D allocation may be reservedexclusively for R&D in PPP modes. DIT may set up a committee to studyand recommend R&D in PPP mode for undertaking socially relevantprograms.

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18. There is need to define ‘R&D in Services’ specially, R&D in ICT Servicesto be broad based. The present definition of R&D as accepted by DSIR andIncome Tax Department appears weak to accept R&D in Services. DITneeds to setup a committee to examine the various facets involved in theR&D in services and come out with suitable definitions of R&D.

19. Terms of reference on structure of DIT and Societies associated with DITneeds a more in depth look by the Government. It is therefore suggested thatDIT may set up a Committee to examine this so as to optimize delivery onprogrammes/policies.

4.6 Plan schemes and Fund requirementsConsidering the requirement of funds for ongoing and new programmes, anoutlay of Rs.8850.0 crore has been recommended by the Sub Group one-Innovation/R&D as per the following details.

(Figures in Rs. Crores)Project/Programme Proposed OutlayNext Generation Computing Systems 4000Innovation Promotion and Nurturing Entrepreneurs 1000National Programme on Perception Engineering 200Programme on Chips to Systems 150IPR Promotion Programme 50Ubiquitous Computing 100Smart Grid 600Nano-technology & Microelectronics Development Programme 750Industrial Electronics & Medical Electronics Programme 150Electronics Components & Materials Programme 155RF/Microwave Electronics 620Convergence, Communication & Broadcasting TechnologiesProgramme

500

IT in Emerging Areas including Media Lab Asia (MLA) andInformation Technology Research Academy (ITRA) etc.

575

Total 8850

The above budget requirements have been mapped in the ongoing schemes and

proposed new schemes as follows:

Project/Programme Proposed OutlayMicro-electronics & Nano-technology DevelopmentProgramme (including SICLDR)

750

Technology Development Council (incl. ITRA) 1495Convergence, Comm. & Strategic Electronics 500Electronics in Health & Telemedicine 50Components & Material Development Programme includingC-MET

155

SAMEER 620C-DAC 4000Media Lab Asia 280Sub Total 7850Proposed New Scheme: Innovation Promotion and NurturingEntrepreneurs (part of EDF)

1000

Total 8850

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Annexure-1

Major Achievements made in the 11th Plan through R&D Support by DIT

1. Achievements made in R&D in Information Technology

(i) High Performance Computing

PARAM Yuva (sustained performance of 37.8 TFs & peak performance of 54TFs)with 200TB storage commissioned. Application developed include weather forecasting,drug designing, bio-informatics, seismic modelling.

(ii) Grid Computing

Garuda grid deployed on NKN. Interoperability achieved with European grid.

(iii) IT Emerging Areas

• Ubiquitous Computing ProgrammeSome of the developments are in agricultural crop yield monitoring and homeappliances like - intelligent mirror, smart kitchen etc. Ubiquitous Smart Parking got anaward. Five patents have been applied with Patent Authority in DIT. Smart parkingsystem has been deployed in Hyderabad Municipal Corporation parking area andawards have been received in e-India 2010 exhibition etc. This is a Multi-institutionalProgramme – other institutions involved are - Amrita University, Kerala; IISc-Bangalore; IIT-Kharagpur in addition to the main agencies involved, which are C-DACCentres at Hyderabad, Chennai, and Bangalore.

• Perception Engineering ProgrammeThis is a Multi-institutional Project, by – IIT-Bombay, IIT-Delhi, Jadavpur University,C-DAC, Kolkata, CEERI-Pilani, IIIT-Hyderabad. Some of the Perceptual models havebeen developed and being tested. Satisfactory results have been obtained. Severalworkshops were organised by all the agencies involved, inviting participants fromeducational institutions and R&D organisations. Development of Perceptual systems formultimedia / video conferencing are being progressed with collaborative researchamong the participating institutes. Video mediated conferencing and perceptual roboticssubsystems and components have been developed. E-nose and e-tongue have beendeveloped by CDAC-Kolkata and are being tested with standards for calibration. NBRCGurgaon has joined as the 7th participating institute recently with 4 part projects onhuman brain perception and sensory behaviour including performance assessment.

• Weather Research and Forecasting (WRF)500 GFs, 64 processor PARAM Padma Super computer with Linux cluster was madeoperational at National Centre for Medium Range Weather Forecasting (NCMRWF).Software for scheduling and managing parallel computer applications was used. Storageof vast data was important issue. Several weather/ ocean models were ported on themachine for carrying out research in weather and climatic applications. This project hasbeen completed successfully during this year and the second phase of this as acontinuous project is under process for approval after being recommended by theWorking Group.

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• Virtual Observatory IndiaDeveloped by Inter-University Centre for Astronomy and Astrophysics (IUCAA), Puneand Persistent Systems, Pune is in operation. Data visualization and Data miningsoftware tools will address many terabytes of data for making astronomical estimationsand study on their co-relations. Mirrors or very large Astronomical data have beencreated. Software for plotting and statistics etc. has been made and these are usednationally and internationally. There is close collaboration with related foreignorganisations in this work. 3D Visualisation, Grid computing will be integrated.Advanced data mining will be emphasised in the currently ongoing phase II of theproject. Phase I of this project have been completed earlier with some of the softwaretools as mentioned above. In the phase II part, 3D data mining and visualization, Gridcomputing, other special applications, refinement of earlier software are beingprogressed.

• National RFID Programme

National RFID Programme with an outlay of Rs. 489.60 lakhs was being implementedjointly by IIT Kanpur, C-DAC, Noida and SAMEER Mumbai. Under National RFIDProgramme Phase I, Parcel Tracking System has been implemented for Department ofPosts in six cities i.e. Delhi, Mumbai, Chennai, Kolkata, Hyderabad and Bangalorecovering 140 post offices. Under the programme CDAC Noida has also implementedin-house people attendance system and Bio Medical Waste Management system. Theproposals under second phase are already considered by the Working Group.

SAMEER has carried out RF testing and characterization of the RFID system procuredby C-DAC Noida. SAMEER participated in the field trials for the Parcel Trackingsystem Project, which were carried out at Speed Post Centre, Mumbai. Various planarand helical antennas have been developed at UHF range of 866 MHz, which can be usedas interrogator antenna.

IIT, Kanpur carried out research on the effects of intervening, interfacing, andenclosing material on the RFID performance in the RFID environment The efforts weremade to analyse and gain a comprehensive understanding of the dielectric constant(electrical permittivity), the magnetic susceptibility (magnetic permeability), theelectrical conductivity, the absorption coefficient, their complex conjugates, and therelated constants, and their dependences on the variable parameters, and have tried toobtain a comprehensive set of the values of the material constants for a diverse set ofmaterials

The project has been successfully completed by CDAC, Noida and SAMEER, Mumbai.The project has been extended at IIT Kanpur to pursue the R&D activities and trainingof faculties in the area of RFID technologies.

• Self Recording Image Surveillance System (SRISS):

Self Recording Image Surveillance System (SRISS) is being designed and developed byCDAC, Thiruvananthapuram. The standalone embedded system for surveillance can beused in many areas, where image processing can be applied. The system whenintegrated with bio-metric devices and connected to the back end system can be used forapplications like preventions of frauds in ATMs and intrusion detection in restricted,high security and strategic areas.

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(iv) Free / Open Source Software

The National Resource Centre for Free/Open Source Software (NRCFOSS) has beenestablished to provide design, development and support services to the FOSScommunity in the country and also strengthen the global FOSS ecosystem bycontributing to the open source pool. Several milestones have been achieved includingindigenised GNU/Linux Operating system distribution “Bharat Operating SystemSolutions (BOSS)” with Indian languages support, National Help-Desk for FOSS,National FOSS portal, BOSS support centres and HR development in FOSS.

BOSS has been released under GPL (General Public License) and is available onhttp://bosslinux.in for free download. BOSS GNU/Linux has been certified for LSB(Linux Standard Base) compliance by Linux Foundation. BOSS Desktop ver 4.0supports all 22 Indian languages. BOSS Advanced Server 1.0 with enhanced securityfeatures, EduBOSS ver 2.0, educational variant for Schools have also been brought out.Data centre with capacity of 2 Terabytes stores BOSS repository for access by users. 27pan-India BOSS support centres have been established to provide technical support tousers.

BOSS deployments have been made in Indian Navy, NIC, BSNL, Punjab, Haryana,Chattisgarh, Tripura, Kerala and Tamilnadu in e-governance, education, productivityand office applications domains. BOSS has been installed in over one lakh Desktops inschools in Punjab and Haryana under Sarva Siksha Abhiyaan programme. Over Rs.100crores have been estimated to be saved by using BOSS in place of proprietary software.80000 BOSS CD/DVDs have been distributed and 143000 downloads have beenreported from the BOSS website.

NRCFOSS Phase II projects are being implemented in consortium mode at C-DAC(Chennai, Mumbai, Hyderabad, Delhi), AU-KBC Research Centre, Chennai, IITBombay and IIT Madras, (Ref http://www.nrcfoss.org.in), where development work isgoing on in areas of GNU compiler construction, software as an architecture, e-learning,mobile platforms/ applications and FOSS knowledge banks.

Regular awareness and training programs have been organised in major cities forgovernment and academic users. FOSS elective courses have been introduced as part ofM Sc, CS and IT courses in around 20 Engg. Colleges in Rajasthan, Punjab,Maharashtra and Tamilnadu benefiting over 4000 students so far.

Draft Device Driver Policy for procurement of hardware in e-Governance has beendeveloped along with NRCFOSS, NIC, OTC and e-Gov division. The draft policy hasbeen put up on DIT web site for public review.

A project titled “CBSE Trainers Training & Students Talent Transformation” has beeninitiated jointly with CBSE for FOSS based education in schools, content developmentand training 5000 CBSE teachers.

(v) Bio informatics

• Software Tools & Data Bases: 31 projects initiated in various institutes under thiscategory with total outlay of about Rs. 31.0 crores in 11th plan period. Some majoroutput of these projects are:

- Research publications in national and international journals- 20 nos.- Novel Software tools / algorithms generated/databases generated -10 nos.- No. Copyright taken for 3 software's rest hosted as open source AT

Supercomputing facility of CDAC, Pune for free access by whole national bio

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informatics community (researches, academicians, industry).- Novel Drug molecules in process in-silico for malaria, cancer, Leishmania

Some example of softtwares , Databases, Algorithms developed are (I)Prediction of 3Dstructures of viral proteins (ii)Development of immune epitopes Database for Viralproteins(iii)An integrated drug target database developed which is designed to includeall the information regarding the targets found in Plasmodium Falciparum ( malaria)(iv) Small molecular inhibitors against three therapeutic targets involved in cancer(WWP1,Stat3, Stat5 ) identified in- silico etc

• Agri Bio-informatics: 5 Centres set up for Agri Bio informatics Promotion withtotal outlay Rs 11.45 crores. Some major Databases and Software tools developedunder this programme are:- Development of Database on Indian Wheat Genotype Analysis of genomic and

proteomic data of pathogen of coconut and araecanut for root wilt and yellowleaf disease

- Database development in progress for molecular characterization and annotationof pigeon pea using comparative and structural genomics

- Insilco characterization and classification of endangered and rare medicinalplants used by tribal in Gujarat

- Analysis, Identification of Resistant/Antivirulance gene in crop genome withpotential role in increasing their disease resistance

• Bio-informatics Infrastructure: Bio informatics Resource and Application Facility(BRAF phase II) set up at CDAC, Pune wherein Bio informatics applications utilize theGaruda grid infrastructure and a grid-enabled Bio informatics Resources (ComputingPower, Databases and the Software) provided to industry, academia. Usage Statistics:There is a sizeable no. of users of BRAF both national and international. The usagepercentage of machine is about 95%.

(vi)Innovation Promotion/ IPR support

• Technology Incubation and Development of Entrepreneurs (TIDE) scheme

Department of Information Technology has also launched a scheme for TechnologyIncubation and Development of Entrepreneurs (TIDE) in the area of Electronics & ICTto strengthen the technology incubation centers at the institutions of higher learning.The Scheme was initiated in 2008 with an outlay of ` 23.40 Crores for a duration of 4years. Further the scheme was expanded to additional 12 TIDE Centres and 2 virtualincubation Centres in year 2009 with an outlay of ` 25.934 crores for a duration of 3years. Under the scheme 27 TIDE Centres will be set up with total outlay of ` 49.334crores. Each TIDE center will be given ` 155.00 lakhs as grant-in-aid over the schemeduration. The scheme aims to nurture technology innovation and enable localdevelopment of Electronics and ICT products and packages in the long run. Thescheme provides financial support for nurturing the techno-entrepreneurs as well as forstrengthening the technology incubation activity at the institutions.

The proposals were invited from the premier institutions having a strong potential totake up Technology Incubation activities. Institutions located in North Eastern regionand Jammu& Kashmir are also requested to submit the applications for TIDE centres.

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Under the Scheme, first installment of grant-in-aid has been released to 17 TIDECenters.

• Multiplier Grant Scheme (MGS)

MGS is to encourage collaborative R&D between industry and academics/ R&Dinstitutions for development of products and packages. The scheme aims to strengthenindustry/ institute-linkages, encourage and accelerate development of indigenousproducts/ packages and bridge the gap between R&D and commercialization. Under thescheme, if industry supports R&D for development of commercializiable products at aninstitution, the Government may provide financial support up to twice the amountprovided by industry. The proposals for providing financial support under the schemewere to be submitted jointly by the industry and institutions. The total scheme outlay is` 36.0 crore including the government contribution in the form of grants-in-aid of` 24.0 crore. The 6 proposals as received under the MGS were examined and consideredby Working Group, however could not be recommended.

A study was conducted on “Collaborative R&D between Industry and academic /R&Dinstitutions”. The MGS was reviewed based on the recommendations made in the studyreport and extended for two years.

• IPR Promotion

Patent & IPR division of DIT has been continuously trying to address the ICT specificIPR issues. The main objective and target of the division is to develop requisitetechnologies, tools, utilities, processes, mechanisms and infrastructure so as to facilitateindustry, R&D organizations as well as individual(s)/ professional(s) in acquiring,protecting, and globally commercialising Intellectual Property Rights (IPRs) in theE&IT sector. The major activities include facilitate technology development, providefacilitation services, and create awareness. Major achievements in the various ongoingactivities in the XIth are highlighted below.

- A Scheme to Support International Patent Protection in Electronics & IT by SMEsand Technology Start-Ups so as to encourage indigenous innovation and to recognizethe value and capabilities of global IP and capture growth opportunities in the area ofinformation technology and electronics has been initiated. Under this scheme, 50%of the total costs towards filing international patent by SMEs / Start Ups will bereimbursed by DIT. Till date 42 ICT based international patents from variouscompanies have been supported;

- Facilitation services are being provided by filing Patents (including InternationalPatents), Copyrights, Designs and Trademarks in respect of creations / innovations ofDIT scientific societies and institutions which are implementing R&D projectsfunded by DIT. More than 400 IPRs that include 60 Patents have been filed by DITin the XIth plan and 200 obtained.

- Various technology development projects, which can augment IPR infrastructure,add efficiency to the IPR process, reduce piracy and help the IPR implementingagencies have been initiated/completed. The completed projects include: IPRmanagement System-CDC New Delhi, Development of Electronics Resource forOptimal Choice of base S/w and tools for computers S/w developers particularly incategory of small and medium Enterprise – IISc. Bangalore, Software IPR Protectiontool –Punjab university Chandigarh, Text Plagiarism detection S/w tool- AmritaUniv. Coimbatore. Further Deployment and commercialisation of these is beingexplored. Projects on Web Based Patent Analysis and management- CDAC, Pune,Development of Semantic Web Portal for TKDL-MNNIT, Allahabad andDevelopment of web based plagiarism detection tool for source code-Amrita

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University, Coimbatore are being implemented. A Prior Art Search Centre have beenset-up at DIT Delhi and CDAC Pune and started giving services to ICT innovatorsand researchers.

- Towards creating awareness to enable the country to absorb modern IPR Culture andits benefits around 50 IPR clinics were organized. . A comprehensive programme forcreating IPR awareness in the ICT sector has been initiated by the department. Underthis programme department will support 60 IPR awareness workshops targetedtowards academia. Researchers and SMEs. Also, under this programme CDAC Pune,in collaboration with World Intellectual Property Organization will be customizingWIPO’s IP panorama for Indian ICT Sector. IP Panorama is a 10 module awarenesscreation animation tool targeting SME sector developed by Korean Intellectualproperty office for WIPO. Rajiv Gandhi School of Intellectual Property Law, IITKharagpur has also been supported for developing a multimedia IP teaching tool forstudents and academia under this programme.

2. Achievements made in R&D in Electronics

(i) Initiatives on Nano-technology:

During 11th Plan Indian Nano-electronics Users Programme (INUP) was initiated at IITBombay and IISc Bangalore. As part of this project two Nano-electronics Centres havebeen created at IISc Bangalore and IIT-Bombay. The facilities created at these Centreshave helped in generation of expertise and knowledge in nano-electronics throughparticipation and utilization by external users. This Programme has supported more than50 R&D projects at more than 40 organizations across the country, which has led togeneration of more than 800-trained manpower from more than 200 organizationsacross India. Three more Centres of Excellence are being established at IIT Kharagpur,IIT Delhi, and IIT Madras on different aspects of Nano-electronics.

Another infrastructure project has been supported at National Physical Laboratory, NewDelhi to facilitate development of Nano-technology Standards, and establishment of anano-metrology lab.

Some of the Nano-technologies developed under DIT’s sponsored projects are (i) R.F.Oscillator for mobile communications, (ii) Molecular Rectifiers based on Organic ThinFilms, (iii) Microwave ring resonator using Ferro electric materials, (iv) A chip hasbeen developed to carry out Polymerise Chain Reaction (PCR chip) for DNAamplification. The chip consists of a small reservoir for DNA containing fluid reaction.The rest of the system supplements the chip by micro-heaters, control electronics, andfluorescence detection to serve as a diagnostic kit, (v) Micro-stereo lithography system,Pulsed Laser Deposition system, Dual Ion Beam Sputtering system and Electro-opticscharacterization systems have been developed, (vi) A novel multi ferroic system(Bi0.7Dy0.3FeO3 or BDFO) which exhibits magnetism and ferro electricity at roomtemperature with a coupling between these two phenomenon has been developed and(viii) Piezoelectric MEMS devices with a novel SU8/ZnO polymer composite have beendeveloped which are low cost and promising candidate for sensor & energy harvestingapplications.

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(ii) Microelectronics Development Programme

During the 11th Five-year Plan, 19 new projects were taken up in the areas of research,technology development, human resource development & infrastructure development.The notable achievements are listed below:

A Digital Programmable Hearing Aid has been designed and fabricatedusing130 nano-meter technology by CDAC, Thiruvananthapuram. Aftersuccessful testing for its functionality, the hearing aid has been given to AIISHMysore, AIIMS, Delhi and AYJNIHH, Mumbai for field trials. Two patentapplications are being filed for this technology.

A Facility for Low Temperature Co-fired Ceramics has been created at CMET,Pune with joint funding by NPMASS-DRDO and DIT. Using this facility itwould be possible to handle the advanced applications such as high densityinterconnects, micro fluidics and micro-sensor packaging.

Centre of excellence for R&D of analog and mixed signal integrated circuits hasbeen created at IIT Madras to focus on development of ultra high-speed datacommunication and data conversion. Five ICs have been designed & fabricated.Two national patents and an international patent have been filed.

Another Centre of excellence has been created at IISc Bangalore to focus onwireless systems. Four ICs have been designed and fabricated. Two internationalpatents have been filed for Low noise amplifying mixer and Adaptive digitalbase band.

Design of Mixed Signal circuits at CEERI Pilani: This project focuses on lowand medium speed (up to 5 MHz) medium resolution (10 to 12 bit) dataconverters required in low power instrumentation applications. . 2 ICs - 10 bitSAR based ADC operating at 5 MHz sampling frequency and 10 bit DAC forconversion time less than equal to 1 microsecond have been designed.

DIT has supported a project on Feasibility Report on development of IndianMicroprocessor at CDAC Bangalore. A sub-Group consisting of members fromAcademic & Research Institutes, Industry (including private industry), Strategicusers, Societies etc. was constituted to carry out this feasibility report. Adetailed report has been submitted to DIT.

A general purpose FPGA based 8 bit secure micro controller with 32 KB flashmemory has been successfully designed by BEL Bangalore. Patent has beenfiled for the design developed.

An Embedded Processor for Smart Camera Systems has been designed at IITDelhi and CEERI Pilani for object detection and tracking. This can be used forapplications like surveillance and traffic monitoring. The processor has thecapability to facilitate intelligent processing of captured images and purposivemovement of the camera based upon visual feedback. Advertisement in leadingnewspaper has been given seeking expression of interest for Transfer ofTechnology from interested industry.

MEMS based Gas sensor has been designed and developed by, BEL Bangalorealong with control circuitry for sensing LPG. BEL has assembled 3200 sensorsand sold to M/s Eureka Forbes.

In Synthetic Jet Based Cooling for High Heat Flux Electronics Componentsproject at IIT Bombay, a synthetic jet based assembly has been designed,fabricated and successfully tested for removal of hotspots from electronics ICs.

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Air has been used as a medium for the synthetic jet. IIT Bombay has filed patenton the technique developed under the project.

Semiconductor Integrated Circuits layout-Design Registry was made operationalfor protection of Intellectual Property of Integrated Circuits by bringing intoforce relevant Sections of Semiconductor Integrated Circuits layout-Design Act.The IC designers can protect their IPR by registering their Layout-Design ofintegrated circuits at the Registry

Two projects on development of database for layout-Design at CADC, Noidaand Pune University will be completed in 2011.

Specialized Human Resource Development in IC Layout-Design at PuneUniversity is on going.

(iii) Industrial Electronics:

Through National Mission on Power Electronics Technology (NaMPET) programmeinfrastructure required for carrying out research in Power Electronics have been createdat 11 leading academic institutes including IITs/IISc and at nodal Centre CDAC,Thiruvananthapuram. As part of collaborative endeavour to develop design capability inpower electronics in the country, twenty projects were jointly taken up for research andtechnology development by the nodal agency CDAC, Thiruvananthapuram with otheracademic institutions. NaMPET had supported ten projects, while five projects werejointly funded with other agencies and five projects were fully funded by externalagencies like Railways, Ministry of Power etc. Technologies such as IGBT Gate Driver,Hall effect Current Sensor etc. have been commercialised. Technology of Grid TieInverter for Solar PV Power Plant has been offered for TOT to seven identifiedindustries. Project was completed in August, 2010

ASTeC as an umbrella project was started in April, 2007 with a broad vision ofundertaking R&D in Automation Technology area to strengthen indigenous capabilityand skill with particular emphasis on Hardware development contributing to design ledAutomation System development in the country. A number of cost effectivetechnologies such as Colour Sensing System, Multiloop Controller, General PurposeController, Low Power Controller, Common Communication Gateway, Wireless SensorNodes, Open Flexible SCADA/HMI Software, Phaser Measurement Unit, ProcessSimulation Platform, Real time Expert System etc. have been developed and field-tested. These technologies are now ready for transfer to industry. The developments aregeneric in nature and can be implemented in all the process industries at an affordablecost with less maintenance problem. The above technology modules from ASTeC arebeing deployed in two demonstration projects being implemented at two industrial sitesto demonstrate the deliverables to the end users. ASTeC is likely to be completed inMarch, 2012.

A Collaborative Intelligent Transportation System Endeavour for Indian Cities (ITS)was initiated in October, 2009 with 3 years duration for development of eight differenttechnology modules of ITS. Prototypes of Wireless Traffic Control System, IntelligentParking Lot Management System and Red light Violation System have been developedand going through field trials. Another project on Application of Electronics forAgriculture & Environment (e-AGRIEN) was initiated in March, 2010 to strengthenlocal base for carrying out research and promoting application of electronics and IT inthe field of Agriculture and environment.

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(iv) Medical Electronics/ Telemedicine:

Under the Jai Vigyan phase I programme which was undertaken during the 10th Plan, two 6 MVmedical LINnear ACcelerator (LINAC) have been developed and commissioned by SAMEER,Mumbai at MGIMS, Wardha and RCC Adyar. These two machines are being used fortreatment of cancer patients. In phase-II of this project initiated during the 11th plan,deployment of four more LINAC machines at four hospitals has been undertaken. The fourmachines are under various stages of development and would be installed when the hospitalsare ready. A facility for batch fabrication of LINAC tube and LINAC machines is beingestablished at Kharghar, Navi Mumbai. Using the infrastructure created at this facility it wouldbe possible to assemble, test and evaluate the complete medical LINAC machine. Also

Development of dual photon energy and multiple electron energy LINAC system for cancertreatment was initiated at SAMEER Mumbai. DIT has also initiated projects to developLINAC-related equipment like Radiation Field Analyzer, Multi Leaf Collinator, ElectronicsPortal Imaging Device and 2.6 MW S-Band Tunable Pulse Magnetron. Development ofRadiation Field Analyzer for Quality Assurance has been completed at the Variable EnergyCyclotron Centre (VECC), Department of Atomic Energy, Kolkata and field-tested in thehospitals having Medical LINAC. The system has been transferred to SAMEER, Bombay forfinal trials and technology transfer.

Pulse Oximeter, a non–invasive device to measure oxygen saturation, which is the percentageof hemoglobin saturated with oxygen, has been developed and the technology has beentransferred to M/s Rajasthan Electronics Instruments Ltd., Jaipur for commercialization.

Under Telemedicine pilot projects, Telemedicine Centres have been established in Punjab,Tamil Nadu, West Bengal and Tripura and patient consultations are being undertaken throughthese Centres. The Telemedicine Centres in Punjab, Tamilnadu and West Bengal have beentaken over by the respective State Governments. A Mobile Tele-Oncology system wasimplemented for extending the coverage of ONCONET- Kerala to the rural masses. Using thesystem, 43 medical camps have been conducted so far covering a population of about 87000over three districts. A new project for deployment of telemedicine at remote CHC/PHC inTripura was also initiated.

A Decision Support System (DSS) for Oncology has been developed after comprehensiveconsultations with doctors and the system enables the clinicians to access the complete medicalrecord of patients at their desktop.

CDAC, Pune has developed software libraries, which can be used to make any software orequipment compliant to DICOM and HL7 standards. These libraries are being used by C-DACin the development of several healthcare applications.

National Resource Centre (NRC) for Telemedicine and Biomedical Informatics has beenestablished at Sanjay Gandhi Post Graduate Institute of Medical Sciences. Lucknow Under thisproject, short-term training programmes in Telemedicine has been conducted for various StateGovernments staff and candidates from abroad. The NRC has also been made the NationalResource Centres for the National Medical College Network (NMCN) being set up by Ministryof Health and Family Welfare, Government of India.

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(v) Electronics Materials & Components Programme :

This programme has following three elements:

(a) Electronics Materials Development Council (EMDC)(b) Photonics Development Programme(c) Centre for Materials for Electronics Technology

• Electronics Materials Development Council (EMDC)

New technologies used for miniaturization of electronic hardware are driven byinnovations in new materials and associated process technologies. Understanding ofphysics and chemistry of new materials is vital for these developments. ElectronicMaterials Development Programme is aimed at sponsoring R&D programmes at leadingacademic institutions such as IITs, IISc, CSIR labs. etc. for realizing this objective.

Several initiatives on the emerging areas of components and materials had been pursuedat research organizations with active participations of industries. Few successfulcollaborative projects included (i) Tuneable microwave dielectric devices, (ii) organiclight emitting diodes, (iii) magnesium oxide coatings for Plasma display device, (iv)multi-layer coatings for high density optical storage devices, (v) optically activepolymers to replacing polycarbonate data storage applications, (vi) oxide films nano-structures based energy systems, (vii) nano NTC material based chip in glass thermalsensors etc.

A cost effective electronics waste recycling processing technology had been developed.NABL accredited testing and certification facilities have been established for thehazardous substances as per European Union (EU) Directive of Restricting the use ofhazardous substances (RoHS).

• Photonics Development Programme

Several initiatives on Photonics had been successfully implemented at researchinstitutes and industry participations. The successful projects included fibre bragggrating, a matlab-based software, Optical fibres, biophotonics for health care centre,installation of fluorescence correlation spectrometers, photonics based fibre optic sensorcable, Mid-stage access optical amplifier (EDFA), packaging centre facility for photonicdevices etc. A base for photonic manpower has been created and photonic researchfellowship had been introduced.

• Centre for Materials for Electronics Technology

Various projects initiated in 11th Plan had successfully been completed. Few suchachievements were packages for Micro Electro Mechanical Systems based explosivesdetection sensors, LTCC based four layer microwave communication circuits, highdielectric PTFE/ceramic substrates, chip in glass fast response thermal sensors,prototype apron with nano-composite coating for efficient X-ray absorption, 7 N purityZinc, Cadmium, Tellurium and Gallium etc. MoU had been signed with DMRL,Hyderabad, for establishing infrastructure to grow single crystal SiC, and also forestablishing facilities for extended pilot plant production of Hafnium.

(vi) RF/ Microwave Electronics

State-of-art facilities for millimeter wave technologies, compact antenna test rangefacility and batch fabrication facility for LINAC tube established. Being used bystrategic Dept. Technologies for atmospheric instrumentation, communication systems

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for strategic applications & microwave disinfections systems, RF driers for agriculturalapplications developed and demonstrated

3. Achievements in R&D in Convergence, Communication & BroadcastingTechnologies

A number of technology development projects successfully completed. Some of theseare:

TETRA based Digital Mobile Radio, Vehicle mount compact Tetra base-station forwhich demos were given to NDMA, NDRF, MHA, NIC, BSNL, TacticalCommunication System , Defence Expo. Developed terminal, gateways for externalcommunication. Dual standard base station and terminal for TETRA and WiMAXdeveloped to support high data rate Technology transferred to TATA Power SEDand ADTL.

4G Wireless standards and simulator were developed. Contributions were made tothe features of IEEE 802.16m and to LTE-A standards, developed Indoor PersonalRelays for 4G system and 4G LTE Test Bed at IITM campus with industryparticipation, 10-12 companies are participating with one third contribution, severalpatents were initiated in 4G technologies)

Wireless LAN manager system was developed and Indian Patent filed

Developed underground mines communication systems. Patents were filed and alsoauthored a book.

A Prototype of Software Defined Radio was developed for multiple channelsrunning legacy waveforms. Prototype demonstrated to various customers andbackpack version development is in progress. Indian Navy has recognized DITefforts – Naval version of SDR being developed with funding from Navy.

A test bed for Wi-Max QoS developed.

Test beds were set up to demonstrate the feasibility of monitoring through wirelesssensor access network for agriculture & transportation and applications.

Tracking and Monitoring system using RFID tags was developed for disastermanagement in underground mines .

Ultra Wide Band Transceiver with Antenna was developed and demonstrated withWireless links.

Smart Antena for Wireless Applications was designed and tested 4x4 array.

On-going Projects: Following are some of the on-going projects in progress:

High Performance Cognitive Radio Networks

Cyber-Physical Systems (CPS)

Rapidly deployable Wi-Max Wireless Mesh Network

Fiber to the Home

Vehicular Sensor & Mesh Network based Intelligent Transportation System

Building Delay Tolerant Peer to Peer Network

Amateur Radio Advanced Digital Communication Network

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Landslide Monitoring System for NE region using WSN

Low-cost WSN Monitoring System for Detection of Harmful Gases

WSN for underwater detection system

Android based application for Geo Profile

Multiple Language subtitles on DTH

Ultra-low Cost Microwave Imaging System using active RFID

Wireless Body Area Network for health monitoring

Relays for Fourth Generation Broadband Wireless Networks

Interference Mitigation methods through Base Station cooperation in 4G, IMT-A and LTE-A

Front-end for wireless data link at 60 GHz

Broadband and dual band antennas for modern wireless communication system

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Annexure-2

Thrust Areas identified by the Sub Group on e-Innovation/R&D for 12th Plan

A broad indicative list of thrust areas identified for promotion of e-Innovation/R&Dactivities during 12th Plan period (2012-17) are given below:

1. R&D in Information Technology

• Innovation Promotion and Nurturing Entrepreneurs

• IPR Promotion

• Next Generation Computing Systems- India Microprocessor Development Initiative- Operating System Development Initiative- High Performance Computing- Cloud Computing

• Electronics Development Fund

• National Programme on Perception Engineering

• Ubiquitous Computing

• Bio informatics

o Next Generation Sequencing applications

o SVM /Machine learning tools based algorithm development

o Cloud computing based Bioinformatics Applications

o Multiple sequence Alignments using AI methods.

o Databases on protein structures and protein structure prediction

o In silico target identification

o Protein folding in silico

• Information Technology Research Academy

2. R&D in Electronics

• Nano-technology

- Strengthen existing facilities and create facilities at other organizations,

- Innovations, application development and incubation facilities forproduct development,

- Facilities for enhancing the activities on computation Nano-electronics,

- Enhancement of Indian Nano-electronics Users Programme.

• Microelectronics

- RF and analog mixed signal technologies

- Embedded systems

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- EDA tools and related software,

- VLSI, Processors (Micro, RISC, ASP etc.)- Design/ Fabrication,Characterization, Testing and modeling etc.

- Micro sensors, Detectors etc.

- Integrated MEMS and VLSI designs solutions

- Process Technologies including development of related semiconductormaterials

• Electronics Materials and Components

- Integrated Electronics and 3D nano scale packaging

- Nano scale materials and composites

- Ultra high purity materials and compound semi conductors,

- Materials for renewable energy,

- Actuators, Sensors

- Photonics Applications (Solid State Lighting, Bio- Photonics)

- Technologies for electronics waste management

- Testing and certification facilities for RoHS.

• Industrial Electronics & Automation Technologies

- NaMPET Phase-2 to be continued to address major applications: SolarInverter, Smart Controllers for high power applications, High VoltageSolid State Cross Bar System for Strategic Departments, Centre ofExcellence for Simulations in Power Electronics/Power System at IITBombay and Micro Integration/ packaging Techniques.

- Field applications of Automation Technology modules,

- Technologies developed on Intelligent Transportation System (ITS) andAgri-electronics to be further augmented and demonstrated in field.

• Smart Grid

Following technology components of Smart Grid:

- Renewable – solar to smart grid, wind to smart grid

- Energy storage and retrieval

- Power line carrier communication

- Smart metering system

- Substation automation: IEDs, SCADA,

- Wide area monitoring system: PMUs, PDCs,

- Home Automation: Home Area Network,

- Software Components: Middleware, Cloud enabled data analysis, self-aware systems, power system analytics and simulations

• RF/Microwave Electronics,

- High power systems for applications in medical/ industrial sectors, foodprocessing, high power transmitters,

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- Computational electromagnetic, Antenna/ Circuit Applications,Atmospheric instrumentation,

- Millimeter wave (MMW) Radar for security applications, MMW imagingsystems and MMW components for strategic applications.

- Terahertz (100 GHz- 10THz) Technology for security applications

- High energy LINAC Technology with electronic portal imaging system

- Applied research in EMI/EMC etc.

• Medical Electronics & Health Informatics

- Medical and Imaging equipments

- Online courseware in Health Informatics

- Deployment of Electronic Health Records ensuring data security

and privacy

- Decision Support System (DSS) for hospitals using advancedtechnologies

- Futuristic R&D projects using new generation technologies

3. R&D in Convergence, Communication & Broadband Technologies

- Next Generation Communication & Convergence technologies (SoftwareDefined radio, Cognitive Radio including White Spaces, 60 GHZ WirelessNetwork, Research in 5 G etc),

- Green Communication and Scavenging energy from ambient EMradiation,

- Wireless Sensor Network (e.g. Communication algorithms, protocols,RFID applications, Vibration Imaging and applications),

- Convergence of wired/wireless and cloud communication networks, fixedmobile convergence Consumer Premises Equipment (CPE) and convergedaccess devices,

- Wireless Technology deployments for rural connectivity (LTE-A, Wi-Fi,WiMax, Amateur Radio)

- Satcom products for use in distance education, telemedicine and other e-government applications as most of these are being imported.

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e-Inclusion

1. Background

1.1 E-Inclusion: The Concept and Objectives

The accumulation transformation and distribution of information with the help of

ICTs is a central element of the structure of the information society. Thus, the danger of

social exclusion in the information society, and of exclusion from its resources, should

not be underestimated. As the gap between the information-rich and the information-

poor widens, the digital divides between them and within societies grow. ‘E-Inclusion’

has been identified as a concept that can be used to counter this development and to

support, in the words of the Global E-Inclusion Movement, “the realization of the full

potential of the digital opportunities”.

A 2004 Working Group on E-Inclusion, which was established within the e-

Europe Advisory Group, defined the notion as follows:

“E-Inclusion refers to the effective participation of individuals and communities

in all dimensions of the knowledge-based society and economy through their access to

ICT, made possible by the removal of access and accessibility barriers and effectively

enabled by the willingness and ability to reap social benefits from such access”.

Further, ‘e-Inclusion refers to the degree to which ICT contribute to equalizing

and promoting participation in society at all levels’.

Thus the objective of e-Inclusion is to achieve a truly inclusive Information

Society. E-Inclusion policies are aimed at:

Removing barriers that prevent access to tools and services of the InformationSociety for people who cannot afford ICT, people with functional restrictionsand people who lack required skills,

Avoiding exclusion, forms of which can be directly linked to ICT, includingrisks of social and economic deprivation among people who do not use ICT asmore e-Services are established,

Harnessing opportunities offered through ICT in order to support exclusion-prone communities in terms of better access to education and employment, and

Exploiting ICT for the purposes of empowerment, motivation and networkingamong individuals and utilizing technologies that contribute towards thedevelopment of social capital.

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1.2 Early Initiatives

India has long recognized the inequities that a digital divide can cause, as also

the potential of ICT to bridge the many divides – rural/urban, literate/illiterate, rich/poor

– in our society. In the early days of the arrival of this technology in India, Prime

Minister Rajiv Gandhi initiated a programme of using computers in education right at

the school level (through the CLASS project), as also to provide better governance

through the introduction of computers in government.

This thrust on using ICT as a tool for inclusion has continued through the subsequent

years. For example, the Working Group for the 10th Five Year Plan (2002-07) on IT

sector constituted seven study teams. The study team in its Report on “Application

Development” suggested various measures. *

In the measures to address issue of Digital Divide and taking the benefits of IT

to the Masses, it was mentioned that it is necessary to keep in mind that the new

technology only reflects the situation of society of today; the digital divide is only a

reflection of the divides that exist in society be they social, economic, educational, etc.

The Ministry of IT had commissioned a Working Group IT for Masses on the subject.

The Working Group has classified issue related to spread of IT to masses into the

following categories:

Infrastructure and Services Electronic Governance Education Mass Campaign for I T Awareness

The thrust on inclusion was taken further forward in the 11th Five Year Plan (2007-12),

as outlined below.

2. Objectives, Target & Achievements of Eleventh Five Year Plan

2.1 Inclusion Agenda

The Eleventh Plan (2007-08 to 2011-12) sought to build on the gains achieved in

the Tenth Plan and shift the economy to a path of faster and more inclusive growth.

Inclusiveness, a critical element in the strategy was to be achieved by ensuring that

growth is broad-based and is combined with programmes aimed at overcoming

deficiencies in critical areas which affect large number of the vulnerable sections of our

population, particularly the Scheduled Castes (SCs) and Scheduled Tribes (STs), the

Other Backward Classes (OBCs), women and the minorities. The Plan sought to deal

with these deficiencies through programmes aimed at providing access to health,

education and other essential services and programmes of livelihood support.

It was recognized that ICT could play an important role in the “inclusion”

agenda, and the Working Group Report of the 11th Five Year Plan identified many

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thrust areas. Some of the e-Inclusion related thrust areas are: Increase IT adoption in the

small and medium business segment, Education and Skill Development, Increase PC

and internet penetration, Increase development and deployment of multilingual

products, Enhancing usage of Free/Open Source Software, etc. It made the following

key recommendations:

* Working Group report on 10th Five Year Plan (2002-07) for IT sector, page 72.

Education: IT enabled teaching and IT teaching in education IT Enabled Energising of Rural India Telemedicine Towards Affordable Computing for Home IT for Small and Medium Businesses (SMB) and Social Sector E-governance Internet Penetration : A key to PC penetration and domestic IT growth Multilingual Software, Applications and Content

2.2 Target and Achievements: Performance of XI Plan Schemes

The Department of Information Technology is implementing various Plan

Schemes for creation of e-infrastructure, Innovation, R&D and Human Resource

Development in the electronics and IT sector. These plan schemes directly and

indirectly impact e-Inclusion. A brief description of these schemes and their

achievements are as follows :-

2.2.1 Electronic Governance

A major initiative of the Government for ushering in e-Governance on national scale,

called National e-Governance Plan (NeGP) was approved on 16th May, 2006. Vision of

National e-Governance Plan is “Make all Government services accessible to the

common man in his locality, through common service delivery outlets and ensure

efficiency, transparency & reliability of such services at affordable costs to realize

the basic needs of the common man.”

2.2.2 Common Services Centres (CSC) Implementation Status

The Government has approved the Common Services Centres (CSC) Scheme in

September 2006 for providing support for establishing 100,000 Common

Services Centres in 600,000 villages of India.

As on 31st July 2011, a total of 96,163 CSCs have been rolled out in thirty three

States/UTs.

100% CSCs have been rolled out in 12 (Twelve) States (Chandigarh, Delhi,

Goa, Gujarat, Haryana, Jharkhand, Kerala, Madhya Pradesh, Manipur,

Puducherry, Sikkim and Tripura).

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The various G2C Services offered are: Agricultural services, RTI Services,

NREGA MIS Data Entry service, Postal Products, Land Records, Issuance of

Birth and Death Certificates, Utility Services, Electoral Services, Transport

Services, Grievances, e-District Services, etc. Financial Inclusion has started in

the States of Jammu & Kashmir, Madhya Pradesh and Meghalaya.

2.2.3 India Portal

India Portal is a Mission Mode Project in the integrated service category under

the NeGP. This Portal is envisaged to be a unified portal that will provide ‘single

window access’ to information and services to be electronically delivered from all state

sector institutions and organizations.

2.2.4 Open Technology Centres (OTC)

The overall vision of OTC is to facilitate adoption of Open Technologies in e-

Governance for strategic applications and services and also to offer various knowledge-

based Services & Products effectively. It enables e-Governance Services to reach vast

majority of Citizens effectively, even if they live in remote rural areas.

2.2.5 India Development Gateway

India Development Gateway (InDG) is a nation-wide initiative, supported by

DIT and executed by C-DAC, Hyderabad. InDG facilitates rural empowerment through

provision of credible information products and services in local languages that respond

to the real and strategic needs of the unreached especially women and poor. InDG is

currently offering the following content related services and products.

Region specific content in 6 sectors, viz., Agriculture, Health, Primary

Education, Social Welfare, Rural Energy and e-Governance in 8 regional

languages.

Value added Services like Ask an Expert, Dynamic Market Information, Buyer

Seller Platform, Real Time Weather Forecast, E-Learning courses, etc.

Multilingual Multimedia products, training for kiosk operators, etc.

2.2.6 National Knowledge Network

On 25th March 2010 the Government approved the establishment of the NationalKnowledge Network (NKN) at an outlay of 5990 crore, to be implemented byNIC over a period of 10 years.

The objective of the National Knowledge Network is to bring together all thestakeholders in Science, Technology, Higher Education, Research &Development, and Governance.

A total of 384 links have been allocated to the Institutions. Out of this, a total of252 connections to the Institutions are operational. A total of 78 Core links havebeen allocated, out of which 65 core links have been commissioned andoperational. NKN Point of Presence (POPs) at Mumbai and Bangaluru areoperational.

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2.2.7 Technology Development in Indian Languages

To enable wide proliferation of ICT in Indian languages, the Department has

taken a major initiative to make available Software tools & fonts in various Indian

languages freely to the general public. Software tools & fonts for 22 constitutionally

recognized Indian Languages have been released in public domain for free mass usage.

2.2.8 STPI: Incubation services

Department of Information Technology has been promoting growth of small and

medium entrepreneurs by creating a conducive environment for software exports.

Towards this end Software Technology Parks of India (STPI) has been promoting

SMEs and their cause by offering Incubation services, Organizing events,

Sponsoring/Co-sponsoring events, Participation in events, human resource development

and exports promotion efforts. STPI has been providing incubation facilities to start-up

units at its various centers. This has been of immense help to start up companies and

entrepreneurs.

2.2.9 Digital Library

The Department has taken the Digital Library Initiatives and as part of this,

copyright free books, manuscripts, and theses, etc., have been digitized. Around 160

Million pages of data have been digitized under Digital Library Initiatives of DIT. Most

of the digitized data has been web enabled on Digital Library of India web site -

http://www.dli.ernet.in/

2.2.10 IT for Masses

“IT for Masses” is a Plan Scheme of DIT. It was introduced in the Tenth Five

Year Plan and continuing in the Eleventh Five Year Plan. Under this scheme, project

proposals of various States Govt. / UTs and autonomous societies of the Department

were considered for financial assistance. Projects are provided grant-in-aid for Training,

Infrastructure creation and Entrepreneurship development in the field of IT for

empowering Women and SC/ST communities. Approximately 2.5 lakh women and

30,000 SC/ST have benefited so far from this scheme and 51 Projects have been

implemented in 25 States/UTs.

2.2.11 Human Resource Development

The Department of Information Technology through DOEACC Society has

initiated projects for setting up Regional Institutes for e-Learning and Information

Technology (RIELIT) at Kohima (Nagaland), Agartala (Tripura); and DOEACC

Centres at Shillong (Meghalaya), Gangtok (Sikkim) and Itanagar (Arunachal Pradesh).

These institutes/centers are aimed to create skilled manpower in the area of Computer

Science and Information Technology and related disciplines for making available

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industry ready professionals and also cater to the needs of the respective states and in

the North-Eastern region. A Scheme for Manpower Development for the Software

Export Industry had been initiated under which various projects are being implemented.

As per the National Skill Development Policy, a target of 10 million manpower to be

skilled in ICTE sector out of the over all target of 500 million skilled manpower to be

trained by 2022 was assigned to DIT. It was felt that ICT basic skills are required in all

the sectors and this skilled population may also require IT literacy. Hence IT Mass

literacy activity has been initiated.

Vocational Centers for Skill Creation for the Children with Disabilities: 20 ICT

Vocational Centers in National Capital Region (NCR) and TamilNadu for training the

physically challenged children were set up in Phase-I (2008-09). The less privileged

children in the proximity of these centers have learnt ICT skills enabling them to seek

employment and earn livelihood.

2.2.12 DOEACC Society

The Society has 15 Centres and is engaged both in the Formal & Non- Formal

Education courses ranging from M. Tech to short-term in the area of IECT besides

development of Industry oriented quality education and training.

2.2.13 C-DAC

C-DAC has been at the forefront of IT revolution, constantly building capacities

in emerging/enabling technologies and innovating and leveraging its expertise, caliber

and skill-sets to develop and deploy IT products and solutions for different sectors.

Software Technologies including FOSS: The agenda of developing eco-system for

Free and Open Source Software (FOSS) was progressed. Deployment of BOSS at

schools across the country was initiated.

Health Informatics: Network of leading hospitals established with ‘Sanjeevani’ (e.g.

PGI, AIIMS,SGPGI, IGMC, PGI Rohtak, SCB Cuttak). Telemedicine Networks

established in Punjab (19 sites), Himachal (21 sites). ‘e-Sanjeevani’ application

launched on CSC on June 2009. Deployment of Telemedicine solutions for eight

hospitals and Cancer Institute (WIA) Adyar, Chennai has been completed. The network

is currently being used for Tele-consultation and Tele-Education activities.

2.2.14 Media Lab Asia

Media Lab Asia works on the paradigm of collaborative research in the task of

developing relevant and sustainable technologies and bringing them to the daily lives of

people. Media Lab Asia’s application development is focused on use of ICT for

healthcare, education, livelihood generation, empowerment of the disabled and

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providing rural connectivity. Many of these products and solutions have been deployed

in the field.

2.2.15 Development of North-Eastern Region

In view of the Government focus on development of North-Eastern Region, it

has been requested by the Planning Commission to earmark at least 10 per cent of the

Gross Budgetary Support (GBS) for the North-Eastern States. In the Annual Plan 2011-

12 (BE) of DIT, the earmarked Outlay for North-East States is Rs. 300 Crore.

2.2.16 SCSP and TSP

Planning Commission has earmarked Plan outlay under SCSP/TSP for 2011-12

as below:-

For SCSP: 2 % of Annual Plan outlay of DIT.

For TSP: 6.7% of Annual Plan outlay of DIT.

As per these recommendations, the Scheme wise earmarking under SCSP & TSP are as

below:-

Sl.

No.

Scheme SCSP

BE 2011-2012

(Rupees in crores)

TSP

BE 2011-2012

(Rupees in crores)

1 National Informatics Centre (NIC) 22.62 67.86

2 E-Governance 21.75 92.42

3 National Knowledge Network 7.50 22.50

4 IT for Masses (Gender, SC/ST) 5.58 7.37

5

Manpower Development (Incl. Skill

Development in IT)2.55 10.85

6 Total 60.00 201.00

3. Private Sector Initiatives

The private sector and community based organizations (CBOs) have taken many

initiates for promotion of e-Inclusion in the areas of computer literacy, internet

proliferation, rural BPOs, agri-marketing, etc. Various studies / reports have

documented the contribution of private sector and CBOs.

4. The Global Scenario

4.1 The Lisbon Strategy

In March 2000 and in response to new challenges of globalization and

technology, the EU set out a strategy based on a consensus among Member States to

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become by 2010 the most competitive and dynamic knowledge-based economy in the

world, capable of sustainable growth with more and better jobs and greater social

cohesion.

The Lisbon Strategy covered a range of policies that promote direct action

through scientific research, education, vocational training, ICT accessibility, jobs

improvement and environmental sustainability.

4.2 i2010: A European Information Society for Growth and Employment

The i2010 policy framework was launched by the European Commission in June

2005 to address the progression and development of the Information Society and the

media. Adopted under the renewed Lisbon Strategy, the i2010 initiative promotes an

open and competitive digital economy which emphasizes ICT as a driver of inclusion

and better quality of life.

4.3 Riga Declaration

At the 2006 Riga Ministerial Conference the Riga Declaration was issued,

proposing to halve the digital divide by 2010. EU Ministers adopted a Declaration on e-

Inclusion in response to the challenges experienced as ICT services are increasingly

accessed by electronic means.

The Riga Declaration places a strong emphasis on 'cross-cutting' issues such as

current enforcement, standard development and implementation of the Web

Accessibility Initiative guidelines.

For e-Inclusion development, the Riga Declaration identifies disabled people,

less developed regions, lower education groups, older people, unemployed people and

women.

In November 2007, the European Commission adopted the European i2010

Initiative on e-Inclusion Communication to raise awareness, demonstrate progress and

reinforce commitment to the Riga Declaration through a strategic framework for action.

4.4 European e-inclusion policy

e-inclusion features prominently in the Digital Agenda for Europe adopted by

the European Commission in May 2010. Under Pillar 6 (Enhancing digital literacy,

skills and inclusion) of the Digital Agenda, the Commission proposes a series of

measures to promote take-up of digital technologies by potentially disadvantaged

groups, such as elderly, less-literate, low-income persons. Improving access for people

with disability is another policy action set by the Digital Agenda.

An important part of the e-inclusion agenda is also tacking demographic ageing

with the help of ICT. Under Pillar 7 (ICT-enabled benefits for EU society) the

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Commission will reinforce the Ambient Assisted Living (AAL) Joint Programme to

allow older people and persons with disabilities to live independently and be active in

society. e-Inclusion is closely related to European policies on social inclusion, education

and culture, regional development, innovation, industry and internal market.

4.5 Millennium Development Goals

The UN Summit on the Millennium Development Goals (MDG), from 20-22

September 2010, concluded with the adoption of a global action plan to achieve the

eight anti-poverty goals by the year 2015. Target 18 of goal 8 mentions the following:

In cooperation with the private sector, make available the benefits of new technologies,

especially information and communications technologies. In addition, ICT can play an

important role in facilitating and accelerating the achievement of other MDGs too.

Various countries in the World have taken initiatives on e-Inclusion. Examples

of two countries, namely Mauritius and Lithuania, are given in Annexure-I.

5. Current State of Digital Divide in India

ICT infrastructure is the backbone of modern society. It is the biggest enabler of

change and process reforms with minimum resistance. India is one of the countries

where telecommunication development activities have gained momentum in the past

decade or so. However, internet penetration has been more modest, though it has been

growing steadily and the magnitude of digital divide is significant between rural and

urban India.

5.1 Teledensity

Far from being a lifestyle product, Mobiles have now become a

necessity. It has penetrated even to the rural areas of India to a good extent. Over and

above with the STD rates and the call rates reducing day-by-day and new competitors

entering, the mobile market has flung open high growth prospects. Globally in terms of

mobile subscriptions, India is the world's second largest wireless market after China. It

is the fastest growing, and has amongst the lowest tariffs in the world.

This growth of the sector can be clearly attributed to the favourable and

improved regulatory structure, declining handset prices and innovative pre paid tariff

structure.

The total telephone subscribers in India as on June, 2011 is 885.99 million,

which translates to a teledensity of 73.97. Out of the total telephone subscribers, wire

line subscribers are 34.29 million (teledensity of 2.86) and wireless subscribers are

851.70 million (teledensity of 71.11). These huge numbers, however, disguise a

disturbing reality, which is the enormous variation within India. The rural telephone

subscribers are 298.05 million which reflects teledensity of 35.60. However, the urban

telephone subscribers are 587.94 million which indicates a teledensity of 163.13. Many

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of the less developed states have state-wise average penetration rates of below 20 per

cent.

Clearly, there is huge divide between mobile phone users in urban and rural

areas, with the overall rural penetration remaining far below the mobile density in urban

areas.

5.2 Internet

As per the Internet World Stats data source, the Internet Penetration in Asia by

31st March 2011 is 23.8% population. The world average is 30.2% and the rest of world

is 38.4%. The Internet World Stats places India in 2nd position among 35 countries and

regions in Asia with Internet user base of 100 million of users. The Internet users in

China are 477 million. The broadband subscribers as on June 2011 are 12.32 million.

5.3 e-Readiness Assessment of the States/UTs

e-Readiness is a multidimensional concept that measures a State’s ability to

participate in an increasingly networked world. It can be viewed as the ability of the

States/UTs to pursue value creation opportunities facilitated by ICT and their readiness

to use technology skillfully at the level of the individual, business and Government.

In the ranking of States/UTs by their e-Readiness, the Report “India: e-Readiness

Assessment Report 2008 for States/Union Territories” differentiates between different

levels:

Leaders-Karnataka, Chandigarh, Maharashtra, Tamil Nadu, Delhi, Andhra

Pradesh

Aspiring Leaders –West Bengal, Kerala, Haryana, Gujarat, Punjab.

Expectants – Andaman and Nicobar, Madhya Pradesh, Goa, Orissa, Assam,

Himachal Pradesh, Uttar Pradesh, Bihar.

Average Achievers – Chhattisgarh, Uttarakhand, Jharkhand, Sikkim, Rajasthan.

Below Average Achievers – Tripura, Nagaland, Puducherry, Meghalaya.

Least Achievers – Manipur, Mizoram, Jammu and Kashmir, Arunachal Pradesh,

Lakshadweep, Dadra and Nagar Haveli, Daman and Diu.

5.4 Digital Divide

From the above, it is clear that while India has made good progress and many of

the numbers – in absolute terms – are impressive, there is a serious divide between rural

and urban, as also amongst States. These divides are further exacerbated if one looks at

digital access on the basis of income and gender.

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6. Constraints

There are some serious constraints which inhibit the use of ICT in the country.

Amongst these are the following:

6.1 e-Access

Connectivity is a serious problem in rural India. Even with the expansion ofthe mobile telephony network, many areas have poor or no connectivity.This is particularly so in more remote and hilly regions of the country,especially in the North East.

Limited Internet accessibility: In rural India, it is almost non-existent, withonly 1.2 per cent people having Internet access. The picture in urban areas isbetter only in comparison, with access available to a paltry 12 per cent.

Limited Bandwidth: There is a growing need for more bandwidth to supportthe spectacular growth in cellular telephony. Besides, catering to the sheerincrease in the number of subscribers, greater bandwidth is also needed forvalue added and better quality service. In this context, broadband is yet tomake a mark in India. The lack of broadband severely constrains a host ofpossible services, including health, education and training.

6.2 Infrastructure

Infrastructure barriers: Electricity is the most basic condition for using ICTs and

many studies have established the relationship between the level of electrification and

digital divide. Rural India has low electricity coverage. Almost 10 per cent villages of

India have no electricity. In “electrified” villages too, actual availability is often limited

to a few hours a day.

6.3 Skill

Literacy & skill barriers: Improved training and skill development has to be a

critical part of an employment strategy. Both Tenth and Eleventh Plan noted the large

gap between the number of new entrants to the labour force and inadequate availability

of seats in vocational and professional training institutes. Basic computer literacy must,

in today’s world, be regarded as an essential skill for all. Unfortunately, its absence adds

one more barrier to ICT access and use.

6.4 Price Barriers

Economic barriers: As per ITU Report “Measuring the Information society2010”, India ranks 81 in ICT Price Basket in the year 2009. High costs,relative to income, make this a very serious constraint.

Content barriers: Relevant content and its availability in local language areboth major barriers. For example, as per the MTA Document of TheEleventh Five Year Plan by Planning Commission, the scheme which have

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not picked up after initiation during Eleventh Five Year Plan is e-health(including tele-medicine)

External Factors: Technological Developments such as Cloud Computingand Open Source Software, Indian language software tools and contents aresome times barriers, though these also present positive opportunities..

7. Important Stakeholders

State Governments/ UTs. SC, ST, gender and other weaker sections. Differently-abled persons. People who are deprived from ICT opportunities. State Governments/ UTs in the North East. Projects Implementing Agencies. Ministries/ Departments in Infrastructure and Social Sector including –

Department of Telecommunication, Woman and Child Empowerment,Tribal Affairs, Rural Development, Panchayati Raj, Minority Affairs,DONER etc.

Community Based Organizations (CBOs)

8. SWOT Analysis

8.1 Strength

e-Infrastructure and e-Services under NeGP, NIC and NKN; and plannedbroadband programs of DOT and those of MHRD through NMICTE..

Indian IT-ITES Industry. Availability of IT Skilled human Resource. High wireless teledensity

­ World’s lowest call rates (1-2 US Cents)­ Fastest growth in wireless phone subscribers (about 14mn per month)­ Total wireless subscribers as on June 2011 is 851.70 million which means

71.11 wireless teledensity. Growing number of e-Services such as Banking, Travel, job portals etc. Plan Schemes such as Electronics in Health and Telemedicine, Technology

development for Indian Languages, IT for masses, E-Governance, DOEACC,Manpower Development, STPI, CDAC and other R&D organizations.

8.2 Weaknesses

Lack of focus on e-Inclusion in IT Policy policies of State Governments/ UTs Lack of legal policy framework for remote healthcare and consultation and

electronic health records Lack of standards for Information Systems, Data management, security,

software localization and interoperability Poor availability of e-Content Poor availability of e-Services

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9. Challenges and Opportunities

Today, India has 11 million citizens in the high-income segment, 58 million inthe middle-income segment and 1,090 million in the low-income group*. If India‘sGDP continues to grow at 7 per cent a year, in 2020 the number of citizens in the high-income segment will rise to 52 million and in the middle-income segment to 372million. The number of households in the low-income group will drop to 933 million.As a result, India has the potential to add around 4 million citizens every year to thehigh-income segment and 26 million citizens every year to the middle-income segmentup to 2020.

ICT-enabled solutions in healthcare, education, financial services and publicservices can drive socio-economic inclusion faster, cheaper and more effectively thantraditional models. To achieve growth, India needs to address demand supply gaps infour key areas - Healthcare, Financial Services, Education & Skill development andPublic Services.

* ‘Report of Task Force to suggest measures to stimulate the growth of IT, IITES andElectronics Hardware manufacturing industry in India’, pages 35-38.

9.1 Challenges and Opportunity for ICT enabled Solutions – Financial

Inclusion

ICT enabled solutions can overcome challenges faced by traditional solutions in

financial

Services.

Challenges ICT-enabled solutions

Higher credit risk and

fraud Unique ID for all citizens to track information at

individual level Database on credit history of citizens with payment

based sharing of data and subscription based access. ICT-enabled warehousing and supply chain

management systems enabling use of warehousereceipts as collateral and securitization of loan

Prohibitive

distribution cost Mobile banking and remittance Internet kiosks for distribution of selected financial

products Low-cost ATM

Inadequate operational

scale economies Standardized MIS Shared services back-office infrastructure Mobile payment solutions to reduce cash and manual

effort between MFIs and SHGs and lendersStructural

inefficiencies in

industry

ICT solutions, such as an effective MIS, can reducecosts and increase transparency

Source: NASSCOM-McKinsey Perspective 2020

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9.2 Challenges and Opportunity for ICT enabled Solutions –Educational

Inclusion

India has made significant progress in education with respect to access and enrolment in

the past decade, largely driven by the government flagship programme in elementary

education - the Sarva Shiksha Abhiyan (SSA). The number of schools increased by 40

per cent between 2002-2003 and 2006-2007, approximately 98 per cent of habitations

have access to a primary school and 86 per cent have access to an upper primary school.

The Net Enrolment Ratio (NER) at the primary level stood at 92.75 per cent in 2006-

2007 compared to 84.5 per cent in 2005-2006. Approximately 1.5 million teachers have

been added to the system between 2002-2003 and 2006-2007.

Five challenges remain in education in India: performance, teacher capacity, teacher

quality, administration and private participation. ICT-enabled solutions can address four

of these five challenges.

Performance: Standardized online performance assessment of students will helpin monitoring and assessing the performance of students. Graded questions ofprogressively increasing complexity and a focus on understanding and analyticalthinking rather than on memorizing facts can be created centrally andadministered at rural school level.

Teacher capacity: Virtual classroom settings in which a teacher delivers onlinecoaching to students in an individual or group setting can help increase teachercapacity. Students can be given access to CDs containing recorded lectures byfaculty.

Quality: Teacher training by a master teacher through interactive and instructor-led methodology will help increase the quality of teachers. The quality ofcontent can be improved by providing interactive, multimedia-based content.

Administration: An effective MIS can help improve school administration. Also,information availability at the country level will help in planning access toeducation for all.

9.3 Role of ICT for inclusive growth in the area of Healthcare

ICT solutions can enable scaling up of public health services without thenecessary investments in physical infrastructure and medical staff, especially inrural areas. A McKinsey analysis suggests that less than 10 percent of demandfor outpatient visits in rural India requires face-to-face interactions with a doctor.More than 90 percent can be addressed through a combination of trainedparamedics and ICT enabled intelligent solutions. This will also reduce the costof consultation and the direct and indirect cost for the patient to visit the doctor.

Telemedicine: Local paramedics capture the images including X-rays of thepatient and transmit them to a central hub where the specialists analyze theinformation and prescribe treatment through interactive video-conferencing.

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Preventive disease surveillance: Local health-workers can use mobile phones tocollect and transmit data on local disease conditions regularly and enablereduced cycle time for epidemic monitoring and prevention.

Electronic health records.

Call centre to provide advisory services.

9.4 Challenges and Opportunity for ICT enabled Solutions – Public

distribution system, Government to citizen services and Citizen Identification

ICT can overcome challenges faced by traditional models.

Area Challenge ICT-enabled solution

Public distribution

system Ineffective distribution

system leading to leakage(only 42% of totaldisbursement reaches poorhouseholds)

Targeted distribution offood using properidentification

Automatedwarehousing andinventory management

Government to

citizen services

Significant time taken forprocesses such as taxpayment, land registration

Lack of transparency

E-governmentsolutions, e.g., onlineland registration, filingof tax return

Community servicecentres with broadbandconnectivity to provideall government tocitizen services

Citizen

Identification No single identification card

currently – multiple idswidely differing in qualityand purpose exist today (e.g.,ration card, PAN card)

Unique ID for allcitizens

Source: NASSCOM-McKinsey Perspective 2020

India has already experienced multiple ICT-enabled solutions across all the four areas,

most of which have been successful in the geographies in which they are implemented.

These solutions need to be scaled up to the national level.

Mobile and broadband and Internet connectivity are critical to increase the reach of ICT

enabled solutions. Mobile connectivity will allow the rural population to access call

centres and use telemedicine, mobile banking and public services. Broadband and

Internet connectivity will enable kiosk-based delivery of healthcare, education and

public services.

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10. 12th Five Year Plan

The Approach to Twelfth Five Year Plan has set the goal “Faster, Sustainable and

More Inclusive Growth”. Going by this broad objective of the Twelfth Five Year Plan,

the strategic plan on e-Inclusion aims at more Inclusive Growth enabled by e-Inclusion

to ensure – social justice and alleviation of poverty to the extent possible with the help

of ICT during the Twelfth Five Year Plan.

10.1 Vision

“Towards an e-inclusive society – Charting inclusive progress, breaking

barriers”

10.2 Mission

Using ICT as a driver of inclusive development, with a strong focus ondisadvantaged groups and less-developed regions.

Promotion of equal access to ICT, digital content and services, and the use ofthese by all.

Promoting technical and content-related skills for using ICT. Promoting pluralism, cultural identity and linguistic diversity in the digital

environment in order to integrate everyone. Promoting quality of life through ICT.

10.3 Objectives

E-inclusive services – providing, through ICT, critical health, livelihood,training, education and citizen services to create a more inclusive society

e-Accessibility - make ICT accessible to all, meeting a wide sections ofpeople's needs, in particular any special needs.

e-Competences - equip citizens with the knowledge, skills and lifelonglearning approach needed to increase social inclusion, employability andenrich their lives.

Socio-Cultural e-Inclusion - enable minorities, migrants and marginalisedyoung people to fully integrate into communities and participate in societyby using ICT.

Differently-abled - Differently-abled people to fully participate in theeconomy and society, continue independent lifestyles and enhance theirquality of life.

Geographical e-Inclusion - increase the social and economic well being ofpeople in rural, remote and economically disadvantaged areas with the helpof ICT.

10.4 Strategy

The Strategy for the 12th Plan is to be an enabling and empowering strategy,

with key interventions as necessary, and a focus on disadvantaged groups and identified

backward areas.

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10.5 Components of e-Inclusion

During the 12th Plan, e-Inclusion will focus on implementing the following

components:

Using ICT for skill development Training for IT Skill Development IT infrastructure creation primarily at schools/colleges Development of entrepreneurial skills in the identified target group Capacity Building Development of electronic products, software tools and e-services. Creation of e-Inclusion centres for development and deployment of IT

products and solutions for differently-abled persons. Conducting studies and advocacy of e-Inclusion initiatives. Content creation in Indian languages. Application development by NIC and others for various schemes of Central

and State Governments targeting BPL households such as NREGA, PDS,IGNOAP, etc.

Develop appropriate systems and software for applications in areas likehealth, education, training and governance, which will facilitate inclusivedevelopment.

10.6 Target Groups

In order to create the maximum impact, there is need to focus on specific target

groups for e-Inclusion. The identified ones are SC, ST, minorities, gender, differently-

abled, Senior Citizens and BPL households.

10.7 Target Areas

Like focussed target groups, there is need to concentrate efforts in a few selected

geographical areas so as to bring about greater equity and inclusivity. The identified

areas are:

North East Region SC and ST concentration areas i.e. in the villages, blocks and districts having

more than 40% of SC/ST population respectively. The backward districts.

11.8 Monitorable Targets and Evaluation

A study team will be constituted to examine and set specific, outcome-realted,

monitorable targets in consultation with all the stakeholders. It will also identify ICT

indicators for e-Inclusion and propose policy and programme evaluation mechanism for

the projects in the 12th Five Year Plan.

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11. Institutional Framework

The institutional framework for implementation of e-Inclusion initiatives willconsist of organizations and stake holders from Government, Industry andacademia and research labs. Consultations meetings will be held with all thestake holders to assess the needs and opportunities for e-Inclusion.

Institutional framework for initiation, appraisal and monitoring of specificprojects under e-Inclusion will be as per existing guidelines of DIT suchas Working Group & PRSGs.

Involvement of State Governments, civil society organisations and PrivateSector will also be targeted for effective promotion of e-Inclusion.

To create the maximum impact and to have an appropriate institutionalframework, it is recommended that e-Inclusion be made a major programme,with specific projects to be executed in mission mode (by concerned Ministriesor State government/Local authorities. The NeGP framework could serve as themodel for this.

12. Funding

Earmarking of allocations in Plan Schemes of DIT for various target groups andareas will be done as per the guidelines of Planning Commission.

As per the guidelines of Planning Commission.

­ For SCSP: 2 % of Annual Plan outlay of DIT for various schemes.

­ For TSP: 6.7% of Annual Plan outlay of DIT for various schemes.

­ For NE Region: 10% of Annual Plan outlay of DIT for various schemes.

Under the Plan Scheme - IT for Masses, fund requirement during the 12th FiveYear Plan period is estimated to be Rs. 160 Crore.

13. Summary Recommendations

The Strategy for the 12th Plan is to be an enabling and empowering strategy,

with key interventions as necessary, and a focus on disadvantaged groups and

identified backward areas.

In order to create the maximum impact, there is need to focus on specific target

groups for e-Inclusion. The identified ones are SC, ST, minorities, gender,

differently-abled, Senior Citizens and BPL households.

The target areas identified for implementation of e-Inclusion initiatives are

North East Region; SC and ST concentration areas i.e. in the villages, blocks

and districts having more than 40% of SC/ST population respectively; and the

backward districts.

Initiate key programmes and projects in identified components of e-Inclusion as

part of a major government programme modelled along the lines of NeGP..

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A study team will be constituted to examine and set the monitorable targets in

consultation with all the stakeholders. It will also identify ICT indicators for e-

Inclusion and propose policy and programme evaluation mechanism for the

projects in the 12th Five Year Plan.

Identify schemes of DIT for earmarking plan allocations under SCSP and TSP

and for NE Region as per guidelines of Planning Commission.

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Annexure-I

Country Initiatives

e-Inclusion in Mauritius

The Government of Mauritius (GoM) recognized early that its Information and

Communication Technology (ICT) sector is important to future development of the

country. GoM sees ICT as a tool to support business processes and information flow

within and across economic activities, leading to increase in value added at the national

level.

The budget 2008-09 provided for the setting-up of a National e-InclusionFoundation on a joint public private partnership. The object of the Foundation is tofacilitate access to ICT tools and raise awareness on their economic and social benefits,train users and trainers, and collaborate with NGOs to reach the poor and those at themargin of the digital society. To achieve the above objectives, the Foundation willdonate refurbished PCs pre-installed with Microsoft free licences to 20,000 poorfamilies within the next five years. Another 10,000 PCs will be given to NGOs for thesetting-up of IT classes for the poor. The Foundation will also operate an NGO ITAcademy with the help of Microsoft for free classes in IT to be delivered specifically toIT teachers willing to acquire more precise knowledge, as well as to the staff of NGOsand to trainers.

Other budgetary measures regarding ICT comprise:

Lowering of telecommunications tariffs; Extension of DBM computer loan scheme to include Net PCs from Mauritius

Telecom for inexpensive computers costing Rs 7,000 through concessionaryloans over 5 years for the full cost of the equipment and three year's worth ofinternet; and

Development of hotspots for educational institutions and public places andexpansion of IT school programme by the Ministry of Education in collaborationwith Mauritius Telecom.

e-Inclusion in Lithuania

There is a certain interest from the government bodies to promote e-inclusion in

Lithuania. The specific body of the Government of the Republic of Lithuania –

Information Society Development Committee – is engaged in this sphere.

E-inclusion covers the programs related to training and education. The main goal is to

ensure that people can use information technologies and telecommunication, be more

flexible, and adjust to changing circumstances. The programs of training include

computerization of schools and libraries, creation of public internet access spots, digital

community projects, raising the qualification of information technologies educators, use

of open code, promotion of remote studies, and development of qualification of the

unemployed people through the use of ICT. Public administration area also includes

several e-inclusion oriented programs: development of computer literacy of civil

servants, integration of disabled persons in information society. The main target of the

latter program is fulfillment of Web Accessibility Initiative.

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APPENDICES

Working Group on Information Technology for the Twelfth Plan(2012-2017)

Terms of reference

1. To review existing policies and evolve an approach for the Information Technologysector for the Twelfth Plan keeping in view the Strategic Plan of DIT for next 5 years.

2. To examine the organizational structure under the Department of InformationTechnology and suggest measures to make it more relevant to the emerging needs.

3. To evolve a pan India Enterprise Framework for services delivery on the basis ofmatured projects of NeGP and MMPs and to leverage the emerging technology trendsin Cloud Computing and linking up with the UIDAI for on line ID services.

4. To extend the accessibility of e-enable services by linking the Banking correspondentsand financial institutions to the citizens through mobile and to reposition CSCs asBharat Nirman Common Services Center in order to cover all Panchayats of theCountry.

5. To drive the National e-Governance Programme with all stake holders for implementingthe Mission Mode Projects in a time bound manner and put in place the requisiteinfrastructure for providing web enabled e-governance services before 2017.

6. To assess and project year wise capacity, export and production potential for thedifferent sub-sectors of electronics and IT industry taking into account domestic andinternational markets.

7. To identify gaps in existing skill sets in different ITES – BPO/KPO verticals andsuggest programs for bridging them through formal and non-formal sectors.

8. To evolve a policy and make specific recommendations for achieving the followingduring the Plan period

a. Create one million jobs in the sector.b. Establish ten world class manufacturing facilities in collaboration with MNCs in

the country.9. To promote the domestic manufacturing in electronic hardware sector and formulate

Special Incentive Package scheme II (SIPS II) in order to provide competitive edge toIT-ITeS and electronics industry by pursuing the recommendations of the Task Force2009.

10. To make India as a leading hub of innovation in cost-effective technology, services andprocess reinvention by collaboratively transforming the eco-system and creatingenablers of innovation.

11. To enhance collaborative research between academics, industry and R&D institutionsand enhance the research capabilities in electronics, information technology and IT.

12. To develop programs to facilitate software product development through activeparticipation of industry and academia with adequate incentive framework.

13. To implement the initiative of Prime Minister’s National Skill Development Policy byskilling 10 million youth in IT sector and launching courses/training programmes inorder to address the dynamism of market needs, initiative for faculty/master trainerdevelopment etc., through PPP.

14. To interconnect all Universities, Libraries, Laboratories, Hospitals and Agriculturalinstitutions on National Knowledge Network and leverage NKN to connect everyvillage on OFC to facilitate GIS based location specific planning and e-governance.

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15. To promote the development of country-specific applications and facilitation of contentdevelopment specific for rural and semi-urban areas for the broadband access inrealizing its positive impact on infrastructure and economic development.

16. To follow a holistic approach in order to secure Indian Cyber Space by including legalframework, R&D in different aspects of cyber security, security practices complianceand assurance, international cooperation and training.

17. To assess the impact of IT sector and suggest measures to improve use of IT in variousfields for increasing productivity, bringing in socioeconomic development and serviceslike e-medicine, e-education, e-entertainment especially to the rural areas.

18. To define deliverables as National goals for the sector for Twelfth Five Year Planperiod as well as Annual Plans, and formulate guidelines for deployment of resourcesoptimally for relating outlays to the specified outcomes.

19. To evolve monitorable targets, implementation mechanism (including financialresources) and suggest mechanism to measure and track the targets.

20. Any other item that the Working Group deems necessary to be included for makingrecommendations useful.

Composition

1. Secretary, Department of Information Technology -Chairman

Members

2. Secretary, Department of Telecommunication

3. Secretary, Department of Industrial Policy & Promotion

4. Secretary, Department of Commerce

5. Secretary, Ministry of Science & Technology

6. Secretary, Department of Secondary & Higher Education

7. Secretary, Department of Legal Affairs

8. AS & FA /Director (Finance), Department of Information Technology

9. GC (e-Gov), Department of Information Technology

10. DG NIC, Department of Information Technology

11. DG CERT-In, Department of Information Technology

12. Group Coordinator (IC& IP), Department of Information Technology

13. Group Coordinator (E-learning & E-Infrastructure), Department of InformationTechnology

14. Group Coordinator (R&D in IT), Department of Information Technology

15. Group Coordinator (R&D in Electronics), Department of Information Technology

16. Group Coordinator (CC&BT), Department of Information Technology

17. Adviser (Industry) Planning Commission

18. Senior Adviser, CIT&I, Planning Commission

19. Economic Adviser, Department of Information Technology Member Secretary

20. Dr. D N Reddy, Vice Chancellor, JNTU, Hyderabad

21. CEO, NISG, Hyderabad

22. Prof. Sadagopan, IIIT, Bangalore

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23. Dr. Gautam Barua, Director, IIT, Guwahati

24. Shri Sameer Kochhar, SKOCH Consultancy, Gurgaon

25. Shri Saurabh Srivastava, President TiE, New Delhi

26. President, MAIT

27. President, ELCINA

28. President, NASSCOM

29. President, TEMA

30. Director General, CII

31. Director General, FICCI

32. President, ISA, Bangalore

33. President, CETMA

34. Chairman, ESC, New Delhi

35. Secretary General, ASSOCHAM

36. President, Internet and Mobile Association of India (IAMAI), Mumbai

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e-Government

Terms of Reference:

(i) To review existing policies and evolve an approach for e-Governance keeping

in view the Strategic Plan of DIT for next 5 years.

(ii) To examine the organizational structure under the Department of Information

Technology and suggest measures to make it more relevant to the emerging

needs

To examine the organizational structure under the e-Governance Division

of Department of Information Technology and suggest measures to make it

more relevant to the emerging needs.

(iii) To evolve a pan India Enterprise Framework for services delivery on the basis

of matured projects of NeGP and MMPs and to leverage the emerging

technology trends in Cloud Computing and linking up with UIDAI for online

ID services

To suggest strategies to reduce duplicate effort for building similar e-

Governance applications by different Departments and States by

leveraging the advancement in technologies such as cloud based platform,

GIS and enterprise architecture for integrating services across departments

in order to be able to create a unified Government.

To put in place a policy framework and fiscal incentives for promotion of

innovation and for project preparation fund in e-Governance

To create a framework for putting data in public domain

To create a framework for data management and analytics with the

objective to provide strategies for leveraging value of date through data

archiving , data mining, data privacy, data de-duplication

To make specific recommendations to promote adoption of common

standards for reference by the administrative units

To make specific recommendations to create an institutional mechanism to

lay down and enforce adherence to laid down standards

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(iv) To extend the accessibility of e-enable services by linking the Banking

correspondents and financial institutions to the citizens through mobile and to

reposition CSCs as Bharat Nirman Common Service Centre in order to cover

all Panchayats of the Country

To assess the status of availability and adoption of e-services and suggest

measures for increasing the same by promoting mobile based technologies

To suggest measures to consolidate and converge the front end kiosks

being setup by multiple Departments

To suggest measures to improve the viability of service delivery access

points

(v) To drive the National e-Governance Programme with all stakeholders for

implementing MMPs in a time-bound manner and put in place the requisite

infrastructure for providing web enabled services before 2017

To suggest new Mission Mode Projects (MMPs) that can be added to the

NeGP Umbrella in sectors such as Health, Education etc.

To review the availability and utilization of the core infrastructure created

under NeGP and to work out the modalities for technological upgradation

and capacity enhancement, based on the needs and the Twelve Strategic

challenges identified for the Twelfth Plan

To suggest measures for sustainability and continuation of completed/on

the verge of completion infrastructure projects

(vi) To follow a holistic approach in order to secure Indian Cyber Space by

including legal framework, R&D in different aspects of cyber security,

security practices compliance and assurance, international cooperation and

training

To suggest measures to create a safe cyber world and to make e-

governance applications safe and secure

To make specific recommendation on effective anti-piracy, data protection,

IPR, copyright laws

(vii) To assess the impact of IT sector and Suggest measure to improve use of IT in

various fields for increasing productivity, bringing in socioeconomic

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development and services like e-medicine, e-education, e-entertainment

especially to the rural areas.

To suggest ways to use ICT for citizen engagement and empowerment

with emphasis in the areas of health, education, food security, and allied

areas, financial inclusion and skills upgradation

To preserve and utilize knowledge in areas of traditional medicine, culture,

arts and sciences

To review penetration of IT across sectors, identify sectors where the full

potential of IT is not being leveraged and suggest measures to increase the

penetration of IT in such sectors

To review the adequacy of the capacity development efforts (including

those of Government officials) and to identify areas to augment the same

including strategies to improve the capacity of the citizens to leverage IT

in their day to day lives.

To benchmark Indian e-Governance practices with the rest of the World

and suggest strategies to improve India’s e-Government ranking

To suggest ways to promote international cooperation in the areas of e-

Governance with a view to leverage India’s software capabilities for

greater global footprint in the sector.

To suggest measures to promote knowledge based society through the use

of ICT

(viii) To define deliverables as National Goals for Twelfth Five Year Plan period as

well as Annual Plans, and formulate guidelines for deployment of resources

optimally for relating outlays to the specified outcomes

To define deliverables of e-Governance project and make specific

recommendation on guidelines for linking funding to achievement of

outcomes.

To define DIT's role in IT project deliverables and outcome based funding

(ix) To evolve monitorable targets, implementation mechanism (including

financial resources) and suggest mechanism to measure and track targets

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(x) Any other item that the Study Team deems necessary to be included for

making recommendations useful

Composition

1 Sh. Rajeev Ratna Shah -Chairman

2

Members

Sh. R. S. Sharma, DG & Mission Director, UIDAI

3 Sh. S. R. Rao, Addl. Secretary, DOT

4 Dr. C. Chandramouli, RG & Census Commissioner

5 Sh. B. K. Gairola, DG, NIC

6 Dr. Amitabh Rajan, Addl. Secretary, DAR&PG

7 Sh. Shankar Aggarwal, Addl. Secretary, DIT

8 Dr. N. Vijayaditya, Controller of Certifying Authority

9 Sh. D. P. Dash, Addl. DG (S&DM), CBEC

10 Ms. Lekha Kumar, Commissioner, Income Tax

11 Sh. A. K. Dash, Dy. DG (PMU), Dept of Posts

12 Sh. Sanjeev Gupta, JS, Dept of Agriculture & Cooperation

13 Sh. J. Satyanarayana Rao, Special Chief Secretary to CM, Andhra Pradesh

14 Sh. P. K. Jena, Comm.-cum-Secretary(IT), Orissa

15 Sh. Santosh Babu, MD, ELCOT, Tamil Nadu

16 Sh. D.P. Wahlang, Mission Director, NRHM & Commr/Secy.(IT), Meghalaya

17 Sh. Sanjay Malhotra, Secry (IT&C), Rajasthan

18 Sh. Rajeev Chawla, MD, Mysore Sales Intl.Ltd., Karnataka

Non-Official Members

19 Sh. Som Mittal, President, NASSCOM

20 Sh. Sanjeev Mittal, CEO, NISG

21 Sh. Sandeep Nair, President, MAIT

22 Sh. Arvind Rao, Chairman/CEO, On Mobile

23 Sh. Kiran Karnik, Chairman, Satyam Computer Services

24 Sh. Mohandas Pai, Ex-Director, Infosys Technologies

25 Sh. Saurabh Srivastava, Chairman, CA Technologies

26 Sh. Anand Parthasarathy, Editor, IndiaTechOnline.com

27 Sh. S Gurumurthy, IT for Change

28 Sh. Ravi Gupta, CSDMS

29 Sh. Sameer Kochar, Skoch Foundation

30 Sh. Pankaj Pachauri, NDTV Special

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31 Sh. Sandeep Pandey, ASHA Parivar

32 Sh. Narendra Ahuja, IT Research Academy, Media Labs Asia

33 Prof. Ashok Agarwal, CSI

34 Prof. S. Sadogopan, IIT, Bangalore

35 Sh. Ravi Pandit, Chairman, KPIT Cummins

36 Representative, ISA

37 Representative ASSOCHAM

38 Dr. Ajay Kumar, Joint Secretary, DIT - Member Convener

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e-Learning

Terms of Reference

1. The e-Learning sub-group will cover the topics of HRD and Skill Development,Technology Development in Indian Languages, e-Learning Technologies and DigitalLibrary Initiatives, e-Infrastructure, Internet Governance, National KnowledgeNetwork, Activities of DOEACC, ERNET and NIXI.

2. To evolve strategies to become world leaders in providing highly skilled manpowerfor Information, Electronics, and Communication Technology (IECT) sectors.

3. Plan, assess and prepare a framework for manpower development by assessing thepresent and future needs of the industry including emerging areas in IECT relateddisciplines.

4. Strategy for collaboration between the industry and the academia would be workedout; this collaboration would not only look into the changing needs of the industry butalso focus on R&D by harnessing the possibilities of the synergy between resourcesof industry and academia. The possibilities of Public Private Partnership (PPP) wouldbe explored in detail.

5. To examine the existing infrastructure and constraints for developing high qualitymanpower and to recommend measures to meet the needs of the industry in the globalperspective including strategies for continuing education for professionals.

6. To study the role of new educational technologies, e.g., Distance Education,Multimedia etc. and to recommend modalities for their integration in the presenteducational/training system. To suggest measures necessary to improve teaching ofnon- IECT subjects by using computers and the Internet for all students.

7. To make recommendations regarding the modalities for achieving mutually beneficialcooperation between educational institutions in IECT in the formal sector and those inthe private sector.

8. To assess the impact of IECT sector and suggest measures to improve use of IECT invarious fields for increasing productivity, bringing in socio-economic developmentand services like e-medicine, e-education, e-entertainment especially to the ruralareas.

9. To assess the need of IECT infrastructure to fulfil the above goals including forinclusive growth, web accessibility for disadvantaged, Internet Governance etc.

10. Development of Technology for Indian Languages to enable the reach of e-governance services to the masses.

11. A Sub-sub-group for Electronics Hardware would be formed under the e-LearningSub-group to suggest measures and formulate strategies in order to help India to grabthe opportunity to become electronics hardware manufacturing hub to meet itsdomestic demands as well as to cater to the global market.

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Composition

1. Prof. N. Balakrishnan, Associate Director, IISc., Bangalore - Chairman2. Prof. S.V. Raghavan, Scientific Secretary to PSA - Co-Chairman

Members

3. Prof. D.N. Reddy, VC, JNTU, Hyderabad4. Prof. Ashok Jhunjhunwala, IIT, Madras5. Shri Ajit Balakrishnan, Chairman, Rediff.6. Prof. Rajeev Sanghal, IIIT Hyderabad7. Prof. S. Sadagopan, Director, IIIT Bangalore8. Prof. Pushpak Bhattacharya, IIT Bombay9. Prof. Santanu Chaudhury, IIT Delhi10. Prof. Mangala Sunder Krishnan, IIT Madras11. Prof. N.J. Rao (Retd. IISc., Bangalore) presently IIIT Bangalore12. Dr. H.K. Kaul, Director, Delnet13. President ISPAI14. Dr. Subho Ray, President IAMAI15. Dr. Sandhya Chintala, NASSCOM16. Shri Sandeep Nair, President MAIT17. Shri Rajeev Malhotra, President TEMA18. Dr. Y V Verma, President CETMA19. Shri Pankaj Mahindroo, President ICA20. President ISA21. President ASSOCHAM22. Shri Y S Mayya, CMD, ECIL23. Shri Ashwani Kumar Datt, CMD, BEL24. Dr B. K Gairola, DG, NIC25. DG, CERT-IN26. Shri N RaviShanker, GC (e-Learning/e-Infra & HCC)27. Dr. Debasheesh Dutta, GC (R&D in IT)28. Dr. Ajay Kumar GC (Hardware Manufacturing)29. Shri T.K. Sarkar, R&D in Electronics30. Prof. Rajat Moona, DG, CDAC, Pune31. Shri N Mohan Ram, DG, ERNET, New Delhi32. Dr. N. Valiwadekar, ED, DOEACC33. Dr Govind, HOD (e-Infra & IG), DIT34. Ms. Swarn Lata, HOD (HCC)35. Shri A. K. Arora, HOD (EL)36. Dr. B. K. Murthy, HOD (NKN, HRD & PEG) Member Convener

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e-Security

Terms of Reference

1. Deliberate on current status of cyber security preparedness in the country and varioussecurity measures in place

2. Define the scope of cyber security initiatives3. Review the policies as per the Strategy Plan.4. Identify potential strategies and initiatives (Action Plan) to address cyber security

issues in a holistic manner to become Global leader (Legal framework, R&D, Securitypractices compliance and assurance, international cooperation, awareness, skilldevelopment and training).

5. Identify key priorities for implementation of action plan and deliverables during 12th

plan.6. Implementation plan7. Institutional arrangement and Role of DIT

Composition

1. Shri N. Sitaram, DS & Former CC(R&D), DRDO - Chairman2. Dr. Gulshan Rai, GC, DIT - Co-Chairman

Members

3. Representative of Principal Scientific Advisor to Govt. of India4. Controller of Certifying Authorities (CCA)5. Director, CAIR, DRDO, Bangalore6. Representative of Integrated Defense Services (IDS)7. Representative of Department of Telecom8. Representative of National Security Council Secretariat (NSCS)9. Representative of National Informatics Centre (NIC)10. Director, Institute for Development & Research in Banking Technology (IDBRT),

Hyderabad11. Representative of Ministry of Railways12. DG CDAC13. ED CDoT14. Representative of NATGRID15. Representative of CMD, ECIL16. Prof. C E Veni Madhavan, IISc., Bangalore17. Shri Vakul Sharma, Advocate, Supreme Court of India18. Dr. K K Bajaj, DSCI19, Representative of CII20.Representative of ASSOCHAM21. Representative of IAMAI22. Representative of Symantec23. Representative of Mcaffe24. Representative of MAIT25. Shri Sanjay Bahl, Microsoft26. Representative of Asian School of Cyber Laws27. Dr. P.S. Nageswara Rao, Director, DIT - Member Convener

Co-opted Member

28. Representative of NTRO

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e-Industry –Electronics Hardware

Terms of Reference

1. To review existing policies and evolve an approach for the electronics sector for theTwelfth Plan keeping in view the Strategic Plan of DIT for next 5 years.

2. To evolve a policy and make specific recommendations for establishing ten world classmanufacturing facilities in collaboration with MNCs in the country during Twelfth Planperiod.

3. To assess and project year wise capacity, export and production potential for thedifferent sub-sectors of electronics taking into account domestic and internationalmarkets.

4. To promote the domestic manufacturing in electronic hardware sector and formulateSpecial Incentive Package Scheme II (SIPS II) in order to provide competitive edge toIT-ITeS and electronics industry by pursuing the recommendations of the Task Force2009.

5. To develop strategies to achieve progressively increasing value addition in domesticelectronics hardware manufacturing.

6. To examine and put in place the policy package and incentives for setting up ofsemiconductor wafer fabs in the country and work out the implementation strategy.

7. To assess the adequacy of data on domestic production, consumption, import/export ofelectronics hardware sector.

8. To assess the requirement of mandating standards and adequacy of infrastructure forvarious electronics products and providing for their implementation/enforcement.

9. To suggest measures for creating a world class eco system and infrastructure forElectronics System Design and Manufacturing (ESDM) Sector.

10. To assess and suggest specific measures required to create sustainable ecosystem forpromotion of innovation, R&D and Indian IP in collaboration with industry, academiaand Government, including providing support for start-ups and other innovations.

11. To suggest a coordinated, simplified and speedy decision making process for all issuesrelating to electronics hardware manufacturing.

12. To assess the requirement of human resources for achieving targeted growth of ESDMand developing strategies for creating the requisite skill base for the sector.

13. To suggest ways to create a globally recognisable “Made in India” brand for ESDM andcommunication strategies aligned with overall sectoral priorities.

14. To suggest ways to enhance export of electronics hardware and to study the impact ofFree Trade Agreements/ Preferential Trade Agreements on the sector.

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15. To suggest measures to promote the growth of semiconductor design and embeddedsoftware industry.

16. To suggest ways and measures to promote development of electronics hardwareproducts/devices suitable for unique Indian requirements (low cost, local languagesupport, low power consumption, ruggedized and suitable for prevailing climaticconditions).

17. To suggest ways and measures for mobilization of funding requirement of the ESDMSector during the Twelfth Five Year Plan.

18. To suggest measures for promoting manufacture of energy efficient Electronic Productsand management of e-waste.

19. To suggest measures to leverage international collaboration for technology acquisitionand attracting investments in high tech areas and leverage the Indian Diaspora in thisregard.

20. To suggest ways and measures to engage public sector facilities and capabilities forstrategic electronics.

Composition

1. Shri Ajai Chowdhry - ChairmanChairman, HCL Infosystems Ltd.

Members

2. Dr. Ajay Kumar, Joint Secretary, DIT3. Shri T.K. Sarkar, GC (R&D in Electronics), DIT4. Dr. Debashis Dutta, GC (R&D in IT), DIT5. Shri B.M. Baweja, GC (R&D in CC&BT), DIT6. Shri Inderdeep Singh, MD, Continental Device India Ltd. (CDIL) and Chairman, CII

National Committee on ICTE Hardware Manufacturing7. Dr. Pradip K. Dutta, Chairman, Indian Semiconductor Association (ISA)8. Dr. R.C. Chopra, Senior Advisor, Confederation of Indian Industry (CII)9. Shri S.S. Raman, CEO, TVS Electronics Limited10. Shri Sanjay Nayak, CEO & MD, Tejas Networks Ltd.11. Shri B.V. Naidu, Chairman & CEO, Sagitaur Ventures12. Shri Robert D. John, President, Electronic Industries Association of India (ELCINA)13. Shri Vinod Sharma, MD, Deki Electronics Ltd. and Past President, ELCINA14. Shri Sanjeev Narayan, MD, SGS Tekniks Manufacturing Pvt. Ltd. and Past President,

ELCINA15. Shri T. Vasu, Director, Tandon Group, Mumbai and Past Chairman, Export Promotion

Council for EOUs and SEZs16. Shri Pradeep Kumar, Vice President, ST Microelectronics Pvt. Ltd.17. Shri Sandeep Nair, President, Manufacturers’ Association for Information Technology

(MAIT)18. Shri Rajendra Kumar, Executive Vice President, HCL Infosystems Ltd. and Past

President, MAIT

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19. Shri Rajiv Mehrotra, President, Telecom Equipment Manufacturers Association ofIndia (TEMA)

20. Shri Pankaj Mohindroo, National President, Indian Cellular Association (ICA)21. Shri Amitabh, Secretary General, Consumer Electronics and Appliances

Manufacturers Association (CEAMA)22. Shri Rajoo Goel, Secretary General, ELCINA23. Shri Rajiv Jain, Associate Director (Government Affairs), India Semiconductor

Association (ISA)24. Shri Ravi Pandit, Chairman & Group CEO, KPIT Cummins Infosystems Ltd.25. Representative of ASSOCHAM26. Representative of CII (Health Sector)27. Shri P.S. Narotra, Senior Director & HOD(IPHW), DIT - Member-Convener

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e-Industry – IT-ITeS

Terms of Reference

1. To review existing policies and evolve an approach for the IT sector to enhance globalcompetitiveness and stimulate domestic growth for the next five years keeping inview the strategic plan of DIT.

2. To assess and project year wise export and domestic revenues for the IT-ITESindustry taking into account domestic and international markets.

3. To create one million jobs for the entire sector including Software.

4. To make India as a leading hub of innovation in cost effective technology andservices.

5. To suggest steps required fostering enabling IT ecosystems relevant to the domesticsector including e-Services, e-Health and e-Commerce.

6. To review competitiveness of the IT-ITES industry and suggest appropriate strategies

for ensuring sustenance of SMEs.

7. To review and suggest strategy to encourage growth of IT-ITES industry in existing

locations and to other urban areas for ensuring balanced regional growth.

8. To review the existing institutional system in the light of current and emerging

scenario.

Composition

1. Shri Som Mittal, President, NASSCOM - Chairperson

2. Dr. Anita Bhatnagar Jain, Joint Secretary, DIT - Co-Chairperson

Members

3. Representative, Department of Commerce (DOC)

4. Representative, Ministry of Small & Medium Enterprises (MSME)

5. DG, National Informatics Centre (NIC)

6. DG, Software Technology Parks of India (STPI)

7. Representative of Planning Commission

8. Shri P.S. Narotra, Sr. Director, DIT

9. Secretary IT, Govt. of Karnataka

10. Secretary IT, Govt. of Andhra Pradesh

11. Secretary IT, Govt. of NCT of Delhi

12. Secretary IT, Govt. of West Bengal

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13. Secretary IT, Govt. of UP

14. Secretary IT, Govt. of Gujrat

15. Secretary IT, Govt. of Rajasthan

16. Secretary IT, Govt. of Uttarakhand

17. Chairman, Electronics and Computer Software Export Promotion Council (ESC)

18. Representative, Manufacturers’ Association of Information Technology (MAIT)

19. Representative, Indian Semiconductor Association (ISA)

20. Representative, Business Process Industry Association of India (BPIAI)

21. Representative, Tata Consultancy Services (TCS)

22. Representative, Wipro

23. Shri S.S. Garg, Director, DIT – Member Convener

Co-opted Members

24. Shri Vishnu R Dusad, Nucleus Software Exports Ltd.

25. Shri Nitin Seth, MD & Country Head, Fidelity International

26. Dr. Subho Ray, President, Internet & Mobile Association of India (IAMAI)

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e-Innovation/ R&D

Terms of Reference

1. Review of 11th Plan with respect to R&D in Electronics and IT

2. To consolidate objectives/aims and expected achievements during the 12th Plan.

3. To identify future technological areas for contributing to overall socio-economicgrowth of the country.

4. To identify specific thrust areas in electronics and information technology and possibleidentification of a few Centres of Excellence in niche areas.

5. To suggest mechanism/strategies to promote R&D for design led manufacturing ofproducts, packages and services; and also to suggest mechanisms to widen the R&Dbase in the country.

6. To devise strategies to support technology start-up companies and to promoteinnovation in academic and R&D institutes leading to eco-system for productdevelopment.

7. To suggest incentives and mechanism for enhancing creation and protection ofintellectual property.

8. To identify possible mechanism to increase contribution of R&D exercises carried outin the civilian sector towards specific applications in defense, atomic energy and space.

9. To identify a few user-specific large technology development/demonstration projects inthe country during the 12th Plan period to establish and demonstrate the country’s realtechnological capabilities.

10. To arrive at an estimate of R&D funds required in the Electronics and IT Sector withbreak-ups under major technology areas.

Composition

1) Prof. Ashok Jhunjhunwala, IIT Madras Chairman

2) Prof. U.B. Desai, Director, IIT, Hyderabad Co-Chairman

Members

3) Dr. Chandra Sekhar, Director, CEERI, Pilani

4) Prof. Rajeev Sangal, Director, IIIT, Hyderabad

5) Dr. A.S. Rao, Director-Innovations, CIIE, IIM, Ahemdabad

6) Prof. Madhav Desai, IIT, Bombay

7) Prof. D.N. Reddy, VC, JNT University, Hyderabad

8) Shri Pradeep Kumar, Vice President, ST Microelectronics

9) Rep DSIR

10) Rep. of BHEL, EDN, Bangalore

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11) Member (Tech.), DoT

12) Shri V. Sridhar, M/s. Sasken Communication Technologies

13) Rep. of NASSCOM

14) Rep. of CEHA / ISA

15) Rep of TEMA

16) Rep. of ASSOCHAM Member

17) Rep. of CII

18) DG, C-DAC

19) Director, SAMEER

20) ED, C-MET

21) Shri V.V.R. Sastry, ED, C-DoT

22) Rep UGC

23) Rep. of DRDO

24) Rep. of Department of Atomic Energy

25) Rep. of Department of Space

26) Rep. of Railways

27) Rep. of Department of Power

28) Rep. of Society of Indian Automobile Manufacturers (SIAM)

29) GC, R&D in IT, DIT

30) GC, R&D in Electronics, DIT

31) GC, CC&BT, DIT

32) Shri Ashok K. Sharma, Scientist ‘G’, DIT Member-Convener

Co-opted Member

33) President, IAMAI

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e-InclusionTerms of Reference

1. To review schemes, strategy and achievements towards e-inclusion in the 11th FiveYear Plan.

2. To identify challenges for e-inclusion in 12th Five Year Plan & propose a strategy for12th Plan.

3. To suggest measures for digital literacy of target groups.

4. To suggest a broad outline for National Policy on e-Inclusion for the identified targetgroups namely SCs, STs, Minorities, Women, differently abled, etc.

5. To identify various schemes of DIT which are suitable for implementing SCSP, TSPand gender budgeting.

6. To identify, develop and deploy appropriate technologies, products and e-Servicesincluding financial & health services as a part of e-Inclusive initiative.

7. To promote the development of applications and facilitation of content developmentin Indian languages specific for rural and semi-urban areas.

8. To identify the institutions and domain areas to establish R&D centres for e-Inclusion.

9. To suggest modalities for international cooperation and training to promote e-Inclusion.

10. To suggest institutional framework to implement policy and programmes undere-inclusion during 12th Five Year Plan.

11. To estimate the outlays for the national programmes of e-Inclusion for the TwelfthFive Year Plan period as well as Annual Plans.

12. To evolve monitorable targets, implementation mechanism (including financialresources) and suggest mechanism to measure and track the targets.

13. Any other item that the Sub Group deems necessary to be included for makingrecommendations useful.

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Composition

1. Shri Kiran Karnik - Chairperson2. Shri B. N. Satpathy, EA, DIT -Co-Chairperson

Members

3. Prof. Rekha Jain, IIM, Ahmedabad4. Joint Secretary (e-Governance), DIT5. Secretary, Department of Information Technology, Orissa6. Secretary, Department of Information Technology, Tamilnadu7. Representative of Ministry of Women & Child Development8. Representative of Ministry of Social Justice& Empowerment9. Representative of Ministry of Tribal Affairs10. Representative of Department of Telecom11. Representative of Department of North Eastern Region12. Representative of Ministry of Minority Affairs13. Representative, Indian Institute of Public Administration, Delhi14. Prof. Aradhna Aggarwal, University of Delhi15. Shri Sameer Kochhar, CEO, Skoch Foundation16. Representative of NASSCOM17. Mr. Sandeep Nair, President , MAIT, Thane18. Dr. Rajeev Kumar, Secretary General, FICCI, New Delhi19. Shri Chandrajit Banerjee, Director General, CII, New Delhi20. Representative of ASSOCHAM21. Shri S. Sivakumar, Chief Executive, ITC-Agri Business Division, Secunderabad22. Shri Rajendra S.Pawar, Chairman & Managing Director, NIIT, Gurgaon23. Shri Amit Sircar , General Manager, Microsoft Global Services, India24. DG (NIC)25. MD, Media Lab Asia26. DG, C-DAC27. ED, DOEACC28. HOD (HRD), DIT29. HOD (EPD), DIT - Member Convener