Information and Communication Technology Based Rural Business Project Subodh Kumar Gupta December 1, 2001.

Information and Information and Communication Communication

Technology Based Technology Based Rural Business ProjectRural Business Project

Subodh Kumar Gupta

December 1, 2001

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Outline

Objective STEMS not Branches Services by STEMS How would it work? User Segments Business Model Schedule Budget Benefits

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Objective

To develop models for Information and

Communication Technology based

service enterprises in rural areas

e.g. PCO-ATMs

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STEMS not Branches!

In the old days, (even now) banks and companies did business through

Branches. Now, we propose to do it through STEMS - Synergetic Terminals offering

Electronic Multiple Services

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Services by STEMS Collection of electricity bills, revenue, etc. Application, disbursement and repayment of loans Deposit and withdrawal of savings Insurance Services Agricultural information – clinic, weather, prices Land records, other documents All these are already being done by projects like AP e-Seva, BASIX-POT, NFCL iKisan.com, ITC Soya

Choupal and MP Gyandoot. Our proposal is to integrate these at the village retail

level with a business model.

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How Would It Work?

Market and Technical Information Companies such as ITC and Dhanuka will own and operate– Market and Technical Information Servers (MaTIS)

Financial Services Companies like ICICI and BASIX will own and operate– Financial Services Servers (FINeSS)

STEMS will act as retail outlets for both – market + technical information and – financial services transactions

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STEMS

MaTIS

Registration

Relevant Information

Uploading local dataDownloading

As needed

Response

STEMS

ResponseResponse

Request for InformationSTEMS

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STEMS

Customer

RegistrationE-Passbook

RequestResponse

Financial Transaction

Updated e-passbookPrinted Receipt

E-receipt

STEMS

FINeSS,

STEMS

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User Segments Farmers Traders Micro-entrepreneurs

Service would be designed to ensure access to Small and Marginal Farmers Small and petty traders Women Illiterate people

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Business Model Village level services by micro-e-ntrepreneurs Backbone provided by specialist agencies

– Micro-finance institutions (e.g. BASIX) – Agri-business companies/associations (e.g. SOPA)– Government agencies (e.g. Agri extension dept) – NGOs (e.g. PRADAN)

MaTIS and FINeSS owned and managed by specialist agencies on profit sharing basis.

STEMS operated by the micro-e-ntrepreneurs on revenue sharing model

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Schedule

3 months to Study and Consultation with potential MaTIS and FINeSS owner/operating companies/agencies

3 months prototype testing in lab condition 3 months field trial of the model 1 months for fine tuning & review 2 months for roll-out in the field

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Budget in Rs Lakhs

1. Study and Consultations 52. Prototype Development 10 3. Field Trial 10 4. Fine Tuning & Roll out 5 5. Total 30 (Plus an office to operate in Bhopal and

fellowship to the proposer)

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Benefits

The assignment will produce scalable models for ICT based service micro-enterprises. If replicated,

These will facilitate the transactions and increase productivity of lakhs of farmers and other rural producers

Thousands of STEMS micro-e-ntrepreneurs will get employment and sustainable incomes

Hundreds of Companies’ rural operation will become commercially viable

Thank YouThank You

Suggestions welcome to [email protected]