Signpost. EY newsletter for Government and Public Sector. September 2018

Transcription

1 Signpost EY newsletter for Government and Public Sector September 2018

2 Inside: Helping UP Police develop emergency response service, Government of Uttar Pradesh Bihar Skill Development Mission, Government of Bihar Establishing Analytics Centre of Excellence for the Government of Rajasthan Helping Government of Haryana in conceptualizing & deploying integrated solid waste management

3 Dear readers, The 10th edition of Signpost highlights EY s support and interventions across four engagements ranging from providing clean environment, safety and security for citizens to cutting-edge data analytics. In Uttar Pradesh (UP), EY deployed a state-of-the-art technology and contact center, which has helped in improving the state s response time in providing emergency services to its citizens. Earlier, it used to take 45 minutes on an average to reach a distressed caller s location. However, EY redesigned the service delivery mechanism to cut down the response time to 15 minutes in urban and 20 minutes in rural areas and further helped the state to deploy 30,000 people and 4,800 vehicles all within 19 months. In the second featured assignment, EY is working with the Government of Bihar to increase the capacity and capability of the state to deliver quality skills training and professional knowledge to the youth so as to enhance their employability and bridge the skill deficit gap to meet the demand. EY also set up the Analytics Centre of Excellence for the Government of Rajasthan to help increase revenue by minimizing leakages and identifying opportunities for generating more revenue. EY s advanced data analytics solution connects multiple revenue-generating state departments, gathers data and analyzes the same with an objective to increase revenue generation. The last project featured in this edition highlights EY s engagement with the Government of Haryana by offering an integrated solid waste management solution to manage the waste and provide a clean, safe and healthy environment for its citizens. Please continue to share your feedback and ideas with me at gaurav.taneja@in.ey.com. I look forward to hearing from you. Kind regards Gaurav Taneja India Government and Public Sector Leader

4 Helping UP Police develop emergency response service, Government of Uttar Pradesh The UP100 project of the UP Police aimed at providing safety and security to 22 crore people by reaching distressed callers locations anytime, anywhere, in the state. Led by the state government and launched in a record time of 19 months, EY helped UP to develop a state-of-the-art emergency response contact center to drastically improve their response time to emergencies, 15 minutes in urban areas and 20 minutes in rural. EY also helped the state government deploy 30,000 people and 4,800 vehicles to expand their emergency management system. EY s sector knowledge, bid management expertise, program management approach, ability to coordinate with multiple stakeholders and ability to manage score of critical tasks methodically, helped launching the project successfully within the deadlines. Overview and challenges: Before UP100, more than 1,500 police stations spread across 75 districts of the state operated under decentralized control; and had vastly different response times to emergency calls. The state government intended to establish a world-class emergency response facility, where the contact center would respond to calls from across UP, a departure from the age-old system of having district control rooms. For this, UP needed to centralize, modernize and expand its emergency management system. UP100 had to be designed to fundamentally reform the police service delivery at the grass-root level, making the police more accountable and their actions, transparent. The project also aimed to integrate all emergency services such as ambulance, fire, etc. While implementing the project, UP Police and EY faced several challenges. On the technology front, these involved technology integration of wireless network, procurement of hardware in a timely fashion, dispatch of 4,800 vehicles with all in-fleet components in place, integration of digital maps, building readiness with network and hardware installation. During project management, challenges pertaining to training of 30,000 staff across 75 districts, managing resistance during capacity-building exercises, seamless integration between applications, resolving process-related conflicts and management of huge volume of calls and multi-stakeholder co-ordination within a short span of time. Support and intervention: The EY team assisted the client in end-to-end delivery of the project and deployment; from conceptualizing the project, designing the solution framework, to project management. Guidance on preparation of inception and detailed project report; cost estimates and the complete bid management activity to engage vendors; developing standard operating procedures, manpower planning, vehicular distribution, management of capacity-building exercises, monitoring the procurement/ deployment and commissioning of necessary IT and fleet hardware; and finally going live and monitoring was also given. EY team designed the solution framework of each components, namely, technology, people, process, vehicle and branding. The solution plan consisted of all aspects of implementation from development, procurement, delivery, commissioning to go-live management. EY s ability to provide deep domain knowledge, co-ordination skills and project management helped the client to successfully implement the UP100 project a model recommended to all other states in India, by Bureau of Police Research and Development. Result and impact: The graph below depicts the ways response time has improved over the months post the launch of UP100 project. While promoting safety and a better quality of life, the biggest impact of UP100 has been with regard to a stronger public faith in law enforcement and emergency services. On an average, almost 15,000 people are being served daily up from 3,000 before its launch. The project has provided assistance to more than 42 lakh cases within a year. More than 60% of the callers were from rural areas up from less than 10% in the previous years. Approximately, 85% of all the cases are resolved on-the-spot based on action taken reports. Based on an independent feedback call, the project registered a satisfaction level of 89% among citizens. Signpost, EY newsletter for Government and public Sector 4

5 Beyond the numbers, getting an assistance within 15 minutes for services including police, fire and ambulance anywhere in the state has brought in a sense of security and peace. Represents lives saved by police/up100 The above represents a data of 510 days from the launch wherein police assistance was provided to 62 lakh cases. Represents per day activity of UP100 EY team worked with us to understand our needs and offered sound advice in various areas including defining robust and scalable technology, designing processes, capacity building of the staff, fleet management of 4,800 vehicles and branding of UP100. EY s professionalism along with their sound knowledge and expertise in designing, procurement and implementation support made a daunting journey much easier for us. They played a major role in the success of this project. I truly appreciate the services rendered by EY in preparing detailed project report, bid process management and project implementation and monitoring. Anil Agrawal, ADG, ITECCS, UP Police, Government of Uttar Pradesh For more details contact: Represents the Top 10 events reported to UP100 Akshya Singhal Partner, Ernst & Young LLP Telephone: akshya.singhal@in.ey.com 5 Signpost, EY newsletter for Government and public Sector

6 Bihar Skill Development Mission, Government of Bihar Bihar Skill Development Mission (BSDM) was constituted with a vision of working towards increasing the capacity and capability to deliver quality skill training in the state. The mission was unique on account of its scale, reach, complexity and innovation. Supporting this vision involved coordination with 15 different departments of the Government of Bihar, numerous training partners, 23 sectorskill councils, trainees, industry associations and other state and national-level stakeholders. The process entailed understanding the existing ecosystem, skill development needs and requirements of Bihar across the various sectors. It was EY s sector knowledge, program management approach, ability to co-ordinate with multiple stakeholders, creation of processes and frameworks along with management of program conceptualization to the implementation plan that helped in designing and implementation of an efficient skill development ecosystem. Overview and challenge BSDM was constituted for working towards increasing the capacity and capability of the state to deliver quality skills training and professional knowledge to youth. The mission s aimed at enhancing employability and bridging the skill deficit to meet the burgeoning demand for skilled manpower. However, to achieve success there was an immediate need to adopt a transformational paradigm by going beyond the traditional approach of matching the demand and supply of skill development services and multiplication of skill building services. The need of the hour was to create a holistic ecosystem for skill development, facilitated by an integrated effort from various stakeholders, in order to effectively create an impact on the economy, demographics and society at large in Bihar. While working towards this, the BSDM and EY faced multiple challenges. These are: Coordinating with multiple stakeholders; seeking inputs and feedback from all the relevant ones across the phases of the skill development value chain for finalizing the various schemes, processes, guidelines, etc. Ensuring last-mile implementation of the project considering the scale Integration of multiple departments, stakeholders, systems and schemes; and automating the entire skill development ecosystem Support and Intervention EY played a vital role in identifying the skills and the gaps in the skilling ecosystem. EY also offered assistance to BSDM in strategizing and conceptualizing roadmaps to overcome the gaps, realizing BSDM s vision and addressing the skill development-specific problems. These include: Access: EY created a block-level training infrastructure to take skill training to remote corners of Bihar and ensuring last-mile implementation. A district-level unit was also employed in order to reach all the 534 blocks of the state. Periodic orientations and capacity building workshops were held for the district units to ensure clarity at all levels Relevance: EY assisted in developing industry collaborations, sector skill councils, training partners, placement agencies, etc. Course offerings and domainbased skill development were put together to match the industry demands.ey also helped in conceptualizing and implementing the unique Kushal Yuva Program to enhance employability of the youth Livelihood generation: EY implemented recruit traindeploy in coordination with industries, specifically to enhance wage employment among the youth Digital automation: EY, in consultation with the relevant stakeholders, also designed a portal that enables the phases across skill development value chain and assists stakeholders in real-time monitoring and timely decision making. The portal also integrates multiple departments, systems, stakeholders as well as schemes and leads to automation of the ecosystem Signpost, EY newsletter for Government and public Sector 6

7 EY s deep domain knowledge and ability to co-ordinate with multiple stakeholders to conceptualize innovative programs and processes helped the client in implementing the skills program in the state. Result and Impact Over 2,400 skill development centers across 530 blocks have been created to generate the required skilling capacity. Fifteen large industry players have been on-boarded to boost national and overseas wage employment. Within 18 months of roll-out, almost 8.5 lakh candidates have registered for various programs and over 4.25 lakh candidates have either been trained or are undergoing training. More than 600 candidates have currently received overseas/national placements under the RTD model. A single-window web portal is in place to effectively integrate all the skill development endeavors in Bihar, enhancing quality of delivery, standardization and real-time monitoring of the project. EY have been committed in their approach to deliver high-quality services within stipulated deadlines along with consistently adding value to the project by leveraging their robust experience. As a Project Management Unit, their approach has been worthwhile, focused and strategic for the implementation of skill development agenda in Bihar. They have a diversified team with sectoral/thematic approach to meet the demographically/culturally/sartorially differing skill-development needs of the state. Sanjay Kumar Mission Director Bihar Skill Development Mission Labour Resource Department For more details contact: Arunkumar Pillai Partner, Skill Development Telephone: arunkumar.pillai@in.ey.com 7 Signpost, EY newsletter for Government and public Sector

8 Establishing Analytics Centre of Excellence for the Government of Rajasthan The Analytics Centre of Excellence (CoE) led by the Government of Rajasthan is a first-of-its-kind implementation in India. The solution brings under its ambit multiple revenue-generating state departments such as commercial tax, excise, transport, mining, stamps and registration; gathers data from these departments and analyzes this data with an objective of increasing the state revenue by identifying opportunities for revenue generation and minimizing leakages. The goal of the Analytics CoE is to augment intelligent data-based policy formulation and decision making by the government. Analytics CoE cuts across multiple technology streams such as data integration, data quality, statistical analysis, network analysis, alert management, advanced analytics, text analytics, social media analytics and big data technology. The project involved understanding the inherent information needs of various departments; constructing the ability to gather and interpret information available from disparate systems; foreseeing the impact of policy decisions; coordinating with a host of stakeholders and thereby running an effective program management; and ability to harness the cross-functional processes and information garnered using analytics. Overview and challenge Prior to the implementation of Analytics CoE, information and data analysis by the government departments of Rajasthan was managed within department-level silos, on heterogeneous systems, assisted by department-centric IT applications and teams. While implementation is also possible by individual departments having their own infrastructure, the departmentspecific approach brought the following challenges to the fore: Limited information exchange across the departments, and thereby limited cross-functional synergies High cost of implementation of Analytics, as compared to a centralized platform approach High operating cost of department-specific applications Proliferation of non-standardized technology EY played a critical role in establishing and driving the analytics agenda for the government of Rajasthan. It was a particularly difficult task to engage with the departments and bring them on board as there was no precedence establishing the success of a centralized analytics capability at a state level. The departments were also apprehensive about the sensitivity of citizen data and department-specific metrics being made available on a centralized platform. Support and Intervention EY deployed a team of 15 technical and functional experts. There were multiple levels of workshops/brainstorming sessions with the department policy makers and the IT support teams to detail out the requirements and outlining a high-level solution. The EY team brought industry expertise and best practices to the table, and set up an integrated data platform for the state. Focus was dedicated on developing a culture around analytics in the state, and in propelling the departments towards continuous improvement through indicator-based performance monitoring and analysis. The team developed the overall solution framework addressing the people, processes and technology components for designing the CoE. Help was offered in setting up the infrastructure incorporating departmentspecific requirements, and in procurement of the analytics or data management applications. Besides this, the client was also helped in customization and rollout of the analytics application across the state departments, including training and competency development for the participating departments. Signpost, EY newsletter for Government and public Sector 8

9 Result and Impact Leveraging a combination of automated business rules and advanced analytics, the EY team identified 2,786 cases of possible revenue evasion across the multiple revenue departments. Of the cases of potential fraudulent behavior identified, 28% were established as correct inferences, whereas 62% are still being investigated by the appellate authority. The data analytics capabilities enabled the Commercial Tax Department to analyze complex patterns such as circular trade, reverse linear trade, etc. Key benefits derived by the departments are: Reporting under-declaration of taxes Identification of fraudulent claims An analysis of the dealer networks has been carried out to establish the network relationships within dealers, and how each dealer is linked to other dealers involved in circular trade. A 360-degree dealer profile is created, capturing the details of the returns filed by the dealer, gross turnover, I/O taxes paid, total sales/purchases made, and the total tax due/deposited by the dealer. Tax evasion analysis captures dealers information holding multiple Taxpayer Identification Number (TIN) on the same PAN, the taxable turnover of the TIN registered under PAN, and the total amount due to the tax department from the particular PAN holder. Econometric models for assessment of taxpayer s liability Models to assess impact of macroeconomic trends on tax collection Dealer risk scoring and creation of dealer 360-degree profile Analysis based on regions, business types, revenue bands, income bands, etc. Figure 2 Transport dashboard 1 The above dashboard for example, displays the RTO/district wise, vehicle-type wise total vehicle registrations, and revenue head wise revenue collected. A drill down is made available to analyze the revenue trends across RTOs/DTOs of the state. Figure 1 Analytics CoE framework 1 All data and illustrations used in the case study are for reference purpose, and do not reflect the actual data 9 Signpost, EY newsletter for Government and public Sector

10 Figure 3 Vehicles with fitness expiry Identification of vehicles with fitness expiry/nearing fitness expiry is illustrated above, the owner details are captured for such vehicles. An estimate of the pending fitness assessment fee provides an opportunity for revenue collection. Going forward, the Department of IT expects EY to integrate the data from additional departments and make the system more intelligent and proactive by using machine learning and predictive analytics capabilities. I want to take this opportunity to congratulate the entire analytics team who are responsible for setting-up of Economic Intelligence Unit for Commercial Tax Department. I along with my team appreciate the project team s commitment and enthusiasm to initiate, manage and achieve the objective of this project within the timelines. I also appreciate the team s professionalism and dedication of the team to ensure quality work in the project. The evasion cases identified by the project team is not only helping the Commercial Tax Department but also helping to increase the overall revenue for the state. Bhagwati Prasad IAS, Addl. Commissioner (Anti-Evasion) Commercial Tax Department Government of Rajasthan For more details contact: Rahul Rishi Partner- Advisory Services, Ernst & Young LLP Telephone: rahul.rishi@in.ey.com Signpost, EY newsletter for Government and public Sector 10

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12 ptualizing & deploying Helping Government of Haryana in conceptualizing & deploying integrated solid waste management The Integrated Solid Waste Management Project in Haryana was undertaken by the state government, and is aimed at providing a safe, clean and healthy environment for its people. Haryana houses a population of 2.76 crore people and generates about 4,514 tons of waste per day. The project aimed to leverage state-of-the-art technologies to provide 100% service delivery for wastemanagement activities throughout the state, thereby improving the living standards and health of its citizens. The project involved conceptualization, project structuring, technical feasibility studies, complete bid process management and finally selecting a credible private player for a successful partnership with the government in order to develop integrated solid waste management facilities throughout the state. Overview and challenge Rapidly increasing quantities of waste and the associated environmental and public health impacts are critical issues faced by state governments in India. Treatment of waste and its scientific disposal is a top priority for state governments and funds have been allocated to install solid waste management projects across the country. The Government of Haryana took this up on priority in order to provide a safe, clean and healthy environment for its people. Haryana engaged EY to create a unique model of waste management for the state, which would serve as an example to the entire country. The Haryana Government faced several challenges. They lacked the technical expertise, accessibility to funds and the manpower required to implement the project at this scale. The government involved EY to advise the Directorate of Urban Local Bodies on the entire process, including planning, preparation and management of Integrated Solid Waste Management (ISWM) projects covering all 80 urban local bodies (ULBs) in public private partnership (PPP) mode. The major challenges faced by EY included selection of promising and experience bidders who could implement the projects successfully. India s experience in PPP projects in municipal solid waste management has had a limited success, especially in treatment of waste. The problem is further compounded due to fly-by-night operators, who lack seriousness in operating projects and merely want to make upfront profits. Hence EY needed to engage with the right partners and incentive module for the success of the project. Support and Intervention EY brought together highly-skilled and experienced professionals who recommended technological models and incorporated international best practices to create the solution framework. In this aim, prospective developers were consulted to understand their needs and concerns, and were integrated with the government s requirements for the effective implementation of the project. EY ensured that regular interactions with the Department of ULB took place and a continuous feedback mechanism was established to meet the client s expectations of deliverables. EY also assisted the Haryana Government in conceptualization, project structuring and management, preparation of inception report, cluster formation report, state-level master plans, stakeholder consultations, technical feasibility reports and bid documents for all 15 clusters, comprising all 80 ULBs in the state. For development of these projects, regional planning was undertaken and 80 ULBs were broadly grouped into 15 clusters, out of which four include waste-to-energy (WtE) facilities and 11 have facilities that process waste through composting/processing of refuse derived fuel (RDF). A combination of technologies were recommended for processing the waste in ISWM clusters, namely waste-toenergy (incineration), RDF processing, composting and biomethanation, and the finalization of the technology was left open for the bidders. The recommendations were based on the segregation of clusters, wherein, clusters with more than 500 TPD waste would be suitable for waste-to-energy plants, whereas those with less waste would include composting or RDF processing. Signpost, EY newsletter for Government and public Sector 12

13 To engage the right vendor, the project documents were carefully structured keeping these concerns in mind. During the bidding process for the selection of a private player, the bidders also had numerous concerns regarding the financial viability of their projects and were skeptical to submit their bids. The team realized that there was a need to incentivize the operators on the output of the project, so as to motivate the bidders to participate. Thus, the project team devised the Output Based Incentive (OBI) model. In this model it was decided that: The selected operators would be responsible for carrying out door-to-door collection of solid waste, transporting it to the processing site, carrying out pre-processing of the mixed waste and producing RDF, setting up a treatment facility for organic waste and using RDF in the WtE plant The operators would establish these integrated facilities by reclaiming existing dumpsites. They would also be responsible for designing, constructing and operating a sanitary landfill facility for disposal of inerts and processing rejects Cost of all these services would be quoted by the bidders in terms of KWh for exported power, in the case of waste-toenergy plants. This is known as OBI and is the bid variable A generic tariff was notified by the Haryana Government for WtE at INR7.05/KWh A power purchase agreement (PPA) was drafted at this rate and included with the bid documents. The difference between the OBI rate and the generic tariff would be paid by the ULB During the construction phase, a fixed tipping fee of INR1,000 per tonne would be paid to the operator by the ULB After commissioning of the project, the operator would be paid INR333 per tonne of waste as a tipping fee, with a 4% year-on-year increase in the same This upfront financial support, technically-sound project structure and government s support assuaged the bidders concerns and ensured their participation. Result and Impact The project design provided highly effective, practical and scientific framework for waste management by setting up integrated solid waste management facilities in Haryana. At present, two project developers have successfully been selected through a competitive bidding process. In the Gurgaon-Faridabad cluster, collection and transportation activities have commenced and the construction of the facility is in progress. In the Sonipat cluster, collection and transportation as well as construction activities will begin soon. The rest 13 projects are underway. The EY team is working very diligently and with high levels of professionalism. They have been instrumental in assisting the urban local bodies of Haryana to structure technically and financially viable integrated solid waste management projects The OBI module developed by the team will ensure proper scientific processing of waste with maximum reduction in volume and compliance with the relevant environmental norms. We are certain that their efforts will help us achieve our vision of Swachh Haryana and set an example for the rest of the country. We wish them all the very best for the future. Anand Mohan Sharan (IAS) Principal Resident Commissioner-cum- Principal Secretary, Urban Local Bodies, Government of Haryana For more details contact: Abhaya K. Agarwal Partner - Government & Transaction Advisory Services Ernst & Young LLP Telephone: abhaya.agarwal@in.ey.com 13 Signpost, EY newsletter for Government and public Sector

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16 Ernst & Young LLP EY Assurance Tax Transactions Advisory About EY EY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. Ernst & Young LLP is one of the Indian client serving member firms of EYGM Limited. For more information about our organization, please visit Ernst & Young LLP is a Limited Liability Partnership, registered under the Limited Liability Partnership Act, 2008 in India, having its registered office at 22 Camac Street, 3rd Floor, Block C, Kolkata Ernst & Young LLP. Published in India. All Rights Reserved. EYIN ED None This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research or the exercise of professional judgment. Neither Ernst & Young LLP nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor. RG EY LinkedIn EY India EY India careers ey_indiacareers