Government and Public Sector: Building a better working world

India is at the cusp of a major transformation, and development is at the forefront of the governments’ agenda. Whether it is the social sector, rural infrastructure or the railways, governments at various levels are attempting to modernize, improve and build, and many of these activities are ongoing simultaneously. The size and scale of what is being attempted in India is unique given the size of its population. The citizens of this country too are demanding more from the governments, and clearly good governance is being repaid by multiple term mandates.

EY, simply put, supports the Government in delivering its charter to the citizens of this country. We want to be the catalyst in the difference you are making in this country.

Doing so requires a deep understanding of the issues and challenges unique to each sector, diverse functional capabilities and a track record of having successfully helped the Government meet its mandate. We believe that our strong capabilities across sectors, experienced and diverse talent pool, and ability to leverage experiences from across our global network makes us an ideal partner for the Government, in working together to build a better working world and a better life for people across the country.

This publication highlights the broad range of our capabilities. We welcome an opportunity to dialogue on how we could support you in delivering to your charter and in building a better working world.

With warm regards, Gaurav Taneja Gaurav.Taneja@in.ey.com

Foreword

EY

4Service lines 3Es

Brand for professional services

3Es of CSREmployment,

Education,Enviornment

citiesPresence in

12

#1

EY

4Service lines 3Es

Brand for professional services

3Es of CSREmployment,

Education,Enviornment

citiesPresence in

12

#1

As the country evolves, impacted by constant change on the economic, demographic and social fronts, the challenges facing the Government continue to evolve as well, creating a need for solutions that can address such challenges conclusively.

Our Government and Public Sector practice has the experience and the depth to help policy makers quickly develop innovative solutions that help resolve the most pressing strategic, management and operational challenges faced by governments.

Our team includes a network of highly skilled professionals from our Assurance, Tax, Transaction and Advisory service lines, dedicated to government and public sector organizations and institutions, with the ability to:

• Provide sustainable solutions that deliver results and not just a diagnosis of problems

• Demonstrate deep understanding of issues by offering timely insights on the most pressing public sector challenges

• Fulfilourcommitmenttoconsistent,high-qualityservice

Government & Public Sector Advisory Services

ValuesOur

makes us different

We are

People who demonstrate

People with People who energy, enthusiasm, and the courage to lead

build relationships based on doing the right thing

integrity, respect, and teaming

Industrial & UrbanWater, waste and Sanitation

Economic Development Advisory

PFM

Health

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Power and Utilities

Smart Cities

Skill and Training

Climate Change & Sustainability

Transport

Digital Government

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Sectorswhere we operate

Industrial & UrbanWater, waste and Sanitation

Economic Development Advisory

PFM

Health

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Power and Utilities

Smart Cities

Skill and Training

Climate Change & Sustainability

Transport

Digital Government

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Industrial and urban

The growth potential of our country hinges to a certain extent on a transformation across our urban areas and industrial infrastructure development. Our support to Government entities at the national, state and city levels is focused on such transformative development, from a strategic level to operational program management. Our work helps drive a sharper focus and convergence of multiple national missions and programs, such as Smart Cities, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Pradhan Mantri Awas Yojna (PMAY), the Ministry of Tourism’s Swadesh Darshan, regional industrial corridors, and Swachh Bharat Abhiyan.

We help drive sharper focus and

convergence of multiple national

missions and programs

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EY undertakes strategic spatial planning; visioning andlong-termplanningforcities;area-developmentinitiatives for new cities/growth centers; municipal infrastructure provision; industrial estates/zones; special economic zones (SEZs); planning for logistics hubs; port-basedcities;privatelydevelopedtownships;andinfrastructure projects.

Our services cover the entire lifecycle of urban transformation and industrial infrastructure development. They include demand assessment and projectformulation;capitalandlong-termfinancialplanning; viability analysis; business models, commercial structuring and project transactions; service delivery

improvement plans; program monitoring, evaluation impact and analysis; and enhancing the role of the private sector in such developments.

We create value by helping cities implement projects that attractprivateinvestment,yieldenergyefficiencyandpromote sustainability, e.g., the street lighting projects in the capital city of a state in north India. We also help the Governmentmanagelargemulti-cityprogramsaimedat creating an improved tourism infrastructure and destination development, e.g., Swadesh Darshan.

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Water, waste and sanitation

Many people in the country still do not have access to safe drinking water and basic sanitation, which is recognized as a basic human right. Innovative and sustainable water and wastewater management solutions, apart from being an imperative for a country, are also a fairly good indicator of a city’s governance. Ensuring effective delivery and management of these resources requires the right strategy and policy framework, regulatory guidance and effective execution of plans and projects.

Our solutions to the Government, industries and multilateral donor agencies include policy and strategy development, performance improvement of the

We work closely with several state

agencies in developing solutions, monitoring

programs and providing program

management support

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sector, project conceptualization, feasibility analysis, monitoringandverificationdevelopment,projectimpactassessment, transaction services and capacity building.

Our deep understanding and experience on the sector enable us to plan, implement and evaluate such projects, as also to advise government entities on social and environmental impacts, provide policy support and assist in the implementation of programs focused on water, waste (solid and liquid) management, sanitation and hygiene. As trusted advisors to the Government, we work closely with several state agencies in developing solutions, monitoring programs and providing program

management support under the Government of India’s flagshipprogram,SwachhBharatAbhiyan(SBA).Wehave also delivered innovative and economically viable solutions addressing challenges around solid waste acrossastateinnorthIndiathroughacluster-basedapproach to integrated waste management.

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Economic Development Advisory

Creatinganeffectiveandself-sustainingecosystemrequires careful and detailed planning at strategic and operational levels, a periodic review of policy framework, building the right infrastructure for skill development and, more importantly, undertaking reforms for improving the appeal of the region that can attract investments and create jobs. We assist governments, both at central and state levels, in preparing the requisite blueprint and implementing programs for economic development.

Our core competency lies in helping governments design and augment vision plans for states and sectors and development plans for the region. We often act as project managers to facilitate the promotion and development

Our core competency lies in helping

governments design and augment vision

plans for states and sectors and

development plans for the region

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ofSEZs,industrialparksandcorridors;supportsector-specificclusters;andenhancetheoveralleaseofdoingbusiness in the regions as targeted.

AsperarecentWorldBankandDIPPstate-levelassessment of the multiple action plans to improve the regulatory framework for business nationwide, four states, which are in the central and western region ofIndiafigureinthetopsixstates.Anotherstateweadvised, that is in North India, was ranked at number 10. EY worked with the Government of a state in central India to implement a detailed plan focused on achieving holistic and sustained development across the state.

This included initiating reforms in the area of business climate; developing skills and infrastructure in the state; effectively rolling out the Make in India initiative at the state level; supporting micro, small and medium enterprises; enhancing the livelihood of farmers; and increasing the overall attractiveness of the state. As a result, the state witnessed 11.1% growth in its GDP in 2013–14 and attracted investment intents worth US$95b during the Global Investor Summit 2014.

Our engagement on these projects further strengthens our vision of building a better working world through improving the ease of doing business.

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Power & Utilities

Power and utilities play an integral role in the progress of a country, as access to affordable and reliable energy is crucial for economic growth. Therefore, it necessitates a seamless integration between policy makers, companies involved in the value chain and the private sector to ensure a sustainable model that can drive growth in this sector. Several initiatives exemplify this integration, e.g., Uday and IPDS/DDGVY for discoms, impacting generation and transmission at the same time; phased rollout of the Smart Grid; the targeted addition of 175 GW from renewable sources; access to 24X7 power; the rationalization of coal supply chain; and increased production, apart from unlocking the value of the generation assets that are in a stranded state.

We offer end-to-end solutions for power projects in generation, transmission,

distribution and fuel sourcing

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EYoffersend-to-endsolutionsforpowerprojectsin generation (including renewable), transmission, distribution and fuel sourcing. Some of the key solutions include assistance for smart grid rollout; load forecasting and demand response; regulatory interventions; strategy, policy, transactions and grid integration for renewables; integrated fuel planning; and bidding for distribution franchisee. EY also provides managed services to ensure that utilities leverage the investments made thus far with interventions around process, technology and people.

We assist a government ministry in the development of investment requirements in Distribution sector under the XIIth plan. Apart from that, we are also currently supporting another ministry and various policy makers in creating a conceptual design of a renewable energy monitoring center and the development of the renewable energy capacity market. Another example includes our assistance to a government power utility authorityregardingtheMoUforitsfirst“SmartGridPilot rollout in Puducherry.”

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Transport

In any economy, the transport sector plays a crucial part in creating and leading an enabling framework to succeed. New transportation assets need to be created and at the same time existing assets need to be upgraded for optimal utilization. Globally, governments and public transportation agencies face challenges in the development of a robust transportation network across their geographies, which necessitates the requirement oftherightpolicyframework,identificationoftherightpartners and arrangement of adequate funds for such projects.

EYoffersend-to-endprojectdevelopmentandmanagement that includes conceptualization, feasibility, monitoring,andidentificationandmanagementofrisks, documentation and service level agreements, commercial due diligence, investor facilitation and knowledge assistance to governments to help them build

Our services extend across various modes

of transportation, including railways,

roads and highways, shipping, aviation and urban transportation

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the adequate infrastructure for transportation. We also help bring enterprises from the public and private sectors together to form the right partnerships. Our services extend across various modes of transportation, including railways, roads and highways, shipping (inclusive of ports), logistic hubs, aviation and urban transportation such as elevated corridors, urbanmobilityplans,cityroads,multi-modalrapidtransportation systems and inland waterways.

We are advising a leading Port Trust and a state government in identifying and developing dry ports/container freight stations in the states of Maharashtra and Telangana, respectively. For India’s premier authority for highways, we successfully undertook a World Bank–funded study for reviewing existing PPP contract modalities and recommended new PPP

contracts such as Hybrid Annuity and Toll Operate Transfer. We are currently providing advisory services forthedevelopmentofahigh-speedrailwaylinkbetween Mumbai and Chennai and the development/redevelopment of four railway stations across central, western and north India.

We helped the metro rail services in a city in Kerala, introduceCommonMobilityCards,transit-cum-EMV (Europay, MasterCard and Visa) prepaid/debit/credit cards for commuters across all modes of public transport in the city. The model resulted in an estimated savings of US$45m and annual royalty amounting to US$34m for more than 10 years from FIs for giving them access to the commuter base with exclusive cobranding rights.

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Health

An effective public health delivery system is essential to ensuring a healthy and productive population, which is crucialforthecountry’soverallwell-beinganddevelopment.However, improvements on a continuous basis are required to adequately prepare the system to cater to the needs of continuously changing demographics.

These evolving needs necessitate innovative, affordable and readily accessible quality solutions around sustainable infrastructure development and funding, along with effective workforce management. Creating an enabling environment for all the stakeholders through an ethical and transparent governancemechanismanddeliveringoperationalefficienciesthrough optimized use of limited resources that can help universalize care, are crucial to the success of a robust public health delivery system.

We work with governments — both at federal and state levels —donorpartnersandthecivilsocietytoinfluencethehealthsector and the society at large to positively impact healthcare for people. It includes developing solutions that address nutritional and environmental safety, sanitation and hygiene, trauma and disaster, lifestyle diseases and health issues related to women.

We work with governments to

influence the health sector and the

society at large with a view to significantly improving the health

of people

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Our support spans across policy reforms and strategy, infrastructure development, planning and designing, institutional strengthening (including training andcapacitybuilding),scaling-uplargeprogramimplementation, and performance improvement (clinical and administrative processes). By optimizing technology, we enable big data analytics to support real-timedecisionmaking,systematizeprogramreviewsto facilitate requisite course correction and generate evidence for expansion and advocacy.

We are working with a multilateral funding agency and the Government of a state in north east India in structuring a universal health insurance scheme for residents of the state. We conceptualized the scheme anditscommercialaspects,definedtheorganizationalstructure of the State Nodal Agency, and developed the mechanism for improving enrolment of residents, empanelment of hospitals and effective utilization of the scheme.

EY is also engaged with another multilateral agency to provide technical support to the nodal Central Government Ministry in implementing an Electronic

Vaccine Intelligence Network (eVIN) across three states in North, Western and Central India. As part of this transformation supply chain exercise, EY is helpingcloselywithanIT-enabledvaccinesupplychain(cold chain). We are also helping enhance the service provider’s capacity at the last mile for successful implementation of the Governments Universal Immunisation Programme.

The procurement capacity building exercise of a public health department in a North Indian state is another example of a multilateral funded project where EY has helped enhance the capacity of a central medical services department to procure equipment, drugs and services. Our mandate involves providing support toward strengthening capacity by developing the standard bidding documents and training manuals, training the staff and handholding the procurement department, including procurement for establishing 150 mobile medicalunitsand73ten-beddeddialysiscentersacrossthe state.

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Public Finance Management

Public Finance Management : Our specialists support government efforts to apply clear, consistent and transparent policies, controls and procedures with regardtopublicfinancemanagement.Theimportanceofastrongpublicfinancemanagementframeworkcannot be emphasized enough because of the critical role it plays in ensuring an effective and sustainable management of public service delivery. Programs are effective and accountable when they are underpinned by good institutions and systems.

Public finance management (revenue): Our complete gamut of services covering policy, process and technology helps the revenue authorities modernize and strengthen tax administration. These services include revenue gap analysis, development of strategies

A strong public finance management

framework is critical in ensuring

an effective and sustainable

management of public service delivery

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and action plan for revenue augmentation, business processre-engineering,adoptionofICTforimprovingbothadministrativeefficiencyandtaxpayerservices,and training and capacity building in the revenue departments to help them cope with the new challenges and emerging technologies. We give special focus to the adoption of analytics for better enforcement and better planning, as well as a smooth transition to the Goods & Service Tax, among other aspects.

Public finance management (expenditure): Our professionals help governments and public sector organizationsimproveplanning,budgetaryandfinancialperformance,andfinancialmanagementprocesses,aswell as to meet public transparency and accountability requirements.Ourdomainexpertiseandsectorknow-

how, combined with our experience of working with various governments at the central and state levels, have accorded us deep experience in helping develop vision documents/strategy papers for states/sectors, undertake fiscalprojectionsandanalysis,assistinplanningandbudgeting, and leverage IT solutions for effective budget estimation, execution and monitoring. Additionally, our broad range of services include strengthening the internal audit functions of public sector undertakings, conducting public expenditure tracking surveys, ensuring capacity building — from design and implementation to monitoring and evaluations — and supporting accounting and audit reforms.

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Climate Change & Sustainability

Climate change is a looming and serious threat facing the world today. According to the Stern Review on the Economics of Climate Change, without adequate action the overall costs of climate change will be equivalent to losing at least 5% of global gross domestic product (GDP) each year, from today till the foreseeable future. Governments and corporations around the world are waking up to this risk, engaging in relevant dialogue and taking appropriate steps in this direction. With fast growing energy needs like those of India, governments are faced with the challenging task of encouraging the use of clean energy, while ensuring energy security. Thereisalsoaneedtodraftaneffectivelow-carbonpolicy to address issues related to sustainable growth and degradation in the quality of environment as also the creation of jobs in this domain.

We work with governments on improving energy

efficiency by offering support through our technical and

operational expertise

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EY offers a multitude of services in the climate change and sustainability space. We work with governments on improvingenergyefficiency,increasingtheharnessingof renewable energy by offering support through our technicalandoperationalexpertise,draftinglow-carbonpolicies for the central and state administrations, and helping them implement adaptation techniques to reduce the impact of climate change. We also help in definingamacro-economic,socialandenvironmentalimpact assessment of climate change and support states in developing and implementing climate mitigation and adaption activities mentioned under the State Action Plan for Climate Change.

EY has partnered with an international organization to assist the Indian government in developing a framework for achieving its targets for renewable energy. We are also working with central government ministries in developing strategies for fostering renewable energy sources and facilitating their integration in the Indian power grid. This would help ensure energy security, promote clean and sustainable source of power, and supportsocio-economicdevelopment.

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Digital Government

Governments across the world are emphatic on digital due to its transformative impact. The need to deliver improved services to customers at a far lower cost impacts everything that governments do. Whether a department is providing access to justice through the courts system, processing tax payments, delivering improved primary school education or facilitating the ease of doing business — the need for better delivery is pushing each and every level within the government tosetthedigitalagendafordefiningbetter,impactfulsolutions.

Today’sfast-growingmixofaccessiblecloudcomputing,ever-smartermobiledevicesandhighly

We help the government drive

digital change across hugely complicated

organizations

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targetedconsumer-orientedapplicationsandtoolsarechanging consumers’ expectations from government services. For governments that get this right, there is the added advantage of enormous savings coupled with dramatically better success rates in delivering a fundamental change.

Our government clients look to us to help them drive a digital change across hugely complicated organizations, by creating a digital strategy, replacing a legacy system withanewtoolset,orre-thinkingtheirservicemodelaround changing customer expectations. We have worked closely with governments and international financinginstitutionstodeliverpath-breakinginitiatives

underlining the digital agenda of the government. For instance, we worked with the central Government in India from an inception stage on the Aadhaar program. In a neighbouring country in the South Asia region, we have supported the Government in creating a “wholeofGovernment”enterprisearchitecture.Weare also supporting a multilateral agency to formulate an implementable common digital agenda for citizens acrossfiveEastAfricancountries.

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Skill and Training

Skilled manpower is a rudimentary imperative for a nation aspiring to become an economic powerhouse. Even more important is that the pace of skill enhancement should match the growth of the economy.

With women accounting for half the population, their role in contributing to the overall growth of the country cannot ever be underestimated. There is an increasing focus on gender diversity that can be achieved by delivering equal opportunities to women. There are multiple challenges confronting women, including a patriarchalmind-setthatdoesnotviewthemasapartof an active workforce, lower literacy levels and other restrictive social factors. With many vocational training courses in formal institutions attracting few girls and other jobs — such as masons, drivers and electricians —

We enable the Government to get access to skilled

manpower, imperative for a nation aspiring

to become an economic powerhouse

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viewedasnon-traditionalforthem,thereisapressingneedtoaddressgenderissuesinallskill-developmentinitiatives.

Weprovideend-to-endsolutions,whichincludeidentifyingskillsgaps,settingskill-specificbenchmarksor standardization of skills, training, helping governmentscreatejobopportunitiesintheidentifiedregions, and ensuring a steady pool of talent is available for such regions.

Government of a north Indian state selected EY to act as the technical consultant and project manager for a Skill Development Mission (UPSDM) — an umbrella body, to manage one of the world’s largest skill development

program. EY operationalized the mission in a record time of six months, ready with an employee base of 200. EY also led the bid process management team, facilitating the engagement of 96 training providers, committed to train 500,000 candidates. We were instrumental in formulating the Annual Action Plan, includingthefinancialmodelfortheorganization,andobtainingsanctionsforfinancesworthUS$160m,besides attracting 4.6m registrations for the state’s skill development program. The program targets to provide employment to over 2m young people in the next three years.

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Smart Cities

The paradigm for managing cities is rapidly changing with the advent of data as a key resource. Emerging technologies such as big data computing and analytics; mobile;socialmedia;andcloud-enabledbusinessanddelivery models are able to help cities leverage data in ways never imagined earlier, and translate that into insights to help them become ‘smart’.

Under the Smart Cities Mission of the Government of India , 100 cities are seeking to leapfrog over many oftheirlegacychallengesandachieve“more”from“less”.Theyaimforatransformationthatharnessesthepower of digital technologies and combines them with innovationsinbusinessandfinancialmodels;industrybest practices in utility and city operations; planning paradigms in new urbanism; private sector enterprise and expertise; and improved institutional processes and citizen engagement.

Our distinguished capabilities include

the ability to calibrate our interventions to challenges that are specific to Indian

cities

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EY is well positioned with a combination of requisite skills sets, competencies and expertise from within India and across the EY global network to help cities along this journey. Our distinguished capabilities include the ability to calibrate our interventions to challenges that arespecifictoIndiancitiesandtakeintoaccounttheprevailing levels of operations and system maturity.

Our services include project conception and prioritization, developing operating and governance models for the smart solution, creating functional and solution architecture, design and program management, process reform, technology selection, implementation support, system integration and change management.

Our smart cities capabilities span across the domains ofmobilityandtrafficmanagement,industrialinfrastructure and large facilities management, public safety and security, energy grid and renewable integration, water and environment, emergency response and disaster resilience, city governance and citizen engagement.

We have helped two cities participate in the Government of India’s Smart City Challenge program. For a water utility in the national capital territory as well as a power generating company in a north Indian state, we have advised on process and technology transformation for efficientimprovementinoperations.

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Holistic economic development in Madhya Pradesh

Case Study 1

Overview and challengesThe Government of MP (GoMP) has been working proactively to create a conducive investment climate by creating infrastructure, reducing regulations and implementing policy reforms to attract investment in the state. As a result, it witnessed an impressive Gross State Domestic Product (GSDP) growth rate 11.1% in 2013–14.

However, the GoMP has been facing several challenges in sustaining the path of its industrial progress. The state’s per capita income was half of the national average at around US$318. In India, MP ranks 11th out of 17 states on the World Bank’s Ease of Doing Business Index for 2014. Furthermore, 80% of investments in the state are in the traditional sectors.

Support and interventions EY, in its role as the Project Management Unit (PMU) for Strengthening Performance Management in Government (SPMG), Directorate of Institutional Finance, and the Knowledge Partner for the Global Investor Summits 2012 and 2014, Trade and Investment Facilitation Corporation Limited (TRIFAC) in the GoMP has worked on the following key areas:

1. Reforms in business climate: EY supported the GoMP in developinglegislationfortime-boundapprovalsfor25criticalinvestorservices,simplified32enablingprocessestoimprove“easeofdoingbusiness”andhelpedtosimplifytheInvestmentApplication Form from 52 to 5 pages.

2. Infrastructure development: EY conceptualized projects and assessed the demand of over 100 infrastructure projects (worth more than US$18b) and supported implementation of four nodes intheDelhi-MumbaiIndustrialCorridorinfluencearea(covering772 sq. km).

High-impactprojectshave been designed to bring about reforms for the development of the private sector by the establishment of industrial clusters, focused skill development, enhanced ease of doing business, diagnosis of the state of industrial infrastructure and investment promotion in MP.

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3. Skill development: EY helped the GoMP develop its policy on technical education and skill development — the state is thefirstinthecountrytodevelopsuchapolicy.Inadditiontothis,EYsupporteditinstandardizingcertifications,industryaccreditation and mobilization of candidates. Consequently, the state has received proposals to establish more than 50 technical institutes that will train 192,000 youths to meet industry needs.

4. MSME’s development and access to finance: EY institutionalized a convergence platform between the Government,industryandfinancialinstitutionstoincreasepenetration of credit disbursement to MSMEs from 10% to 30%, and supported development and implementation of seven MSME clusters in focus sectors, thereby facilitating access to markets and upgrading of technology.

5. Enhancement of livelihood: EY helped to increase the technicalknow-howandskilldevelopmentofmorethan48,000farmersthroughthetwo-dayHorti-Expomeet.Ithelpedtocreateafive-yeardevelopmentplanthatfocusedonbackward linkages to facilitate improvement in the quality and quantity of produce.

6. Increasing attractiveness of state: EY conceptualized a marketing plan for MP for investors in India, and supported the Government by helping to implement outreach programs for several investors to promote and build MP’s image to enhance its brand equity.

Result and impactThebenefitsoftheaboveinterventionwerefeltdirectlyattheGlobal Investor Summit held in October 2014 in Indore which witnessed an unprecedented success with the participation of over 500 foreign delegates from 9 partner countries and 32 participating ones, and industry participation of over 6000 business delegates and 200 captains of industry. During the recent event, US$95b worth of intentions to invest were received. In its role as the state’s knowledge partner, EY helped in organizing the event and is now helping the Government implement the investment intentions.

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Overview and challengesWith more than 1,20,000 luminaries of varied kinds and wattage, maintenance of Jaipur’s street lighting system was becoming a challenge for JMC. There was a serious gap in road lighting and maintenance standards, which resulted in poorly lit roads. The State Government’s annual energy expenditure of US$5m (approximately) on street lighting was also becoming a burden to the public exchequer. To overcome these challenges, theJMCenvisagedtheimplementationofenergy-efficientstreetlighting system in the PPP model in Jaipur. The JMC envisioned implementing this project as a pilot, which, if successful could be replicated in other cities in Rajasthan.

One of the key challenges faced while implementing the project wasthatitwasafirst-of-itskindventureofsuchascaleinthecountry, and consequently, there was no success story for it to follow.Techno-commercialduediligenceandstructuringoftheproject required innovation and attention to minute details to make the project technically implementable and commercially viable.

Support and interventionTo give transactional support to the project, the JMC appointed the International Finance Corporation (IFC) as lead advisor. IFC appointed EY as transaction advisor.

As transaction advisor, EY helped the JMC appoint the ESCO byundertakingadetailedduediligenceandproject-structuringexercise. EY also helped it develop concession terms and the modalities of bid process management.

Jaipur street lighting Public Private Partnership project

Saving energy is a matter of global importance and adoption ofenergy-efficientdevelopmentmeasures is critical for its sustainable growth. The Public Private Partnership (PPP) structure developed by EY helped the Jaipur Municipal Corporation (JMC) appoint the Energy Services Company (ESCO) to implementenergy-efficientstreetlighting in Jaipur. The project is expected to reduce energy consumption for street lighting in the city by around 77% and improve the luminosity of the city’s roads to a great extent.

Case Study 2

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The“savings-share”modelwasusedtodesign the project structure. This enabled the ESCO to realize revenue from savings achieved by the implementation of the energy-efficientsystem.

Result and impactThe project was successfully completed in January 2015 with an agreement being signed between JMC and the ESCO. The ESCO is expected to implement the project in a phased manner within 15 months from signing of the agreement and achieve 77.13% energy savings. It will share 30.06% of the savings with JMC. This makes it a win-winsituationforbothJMCandESCO.Successful implementation of the project is a role model for adoption of the PPP model tosetupenergy-efficientprojectsinIndia.These will pave the way for similar projects in other Indian cities. Needless to say, replication of such energy savings in street lighting across cities will result in a reduced carbon footprint, make capital available for other developmental works and eventually facilitate the building of a better working world for us.

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Overview and challengesDepartment of Ports and the Government of Kerala (GoK), through its wholly owned subsidiary, undertook the development ofadeepwatermultipurposegreenfieldportatVizhinjaminKerala,onPPPbasis.Thestrategicandmacro-economicimpactof the project for Kerala as well as for India, in view of hinterland development,isofsignificantnationalinterest.Currently,dueto draught limitation at most of the Indian ports and relatively long distance of Indian ports from international shipping lines, ports of Colombo, Dubai, Salalah, Port Klang and Singapore act as transhipment hubs for almost 80% of Indian bound container cargo. Vizhinjam Port has the essential parameters — i.e., natural depth and close proximity to the international trade route — to win back the Indian cargo being handled in other neighboring ports. The GoK appointed EY as a transaction advisor to help it avail the VGF and select a private developer for the project. One of the key challenges in the assignment was that it is the first-of-itskindgreenfieldportprojectinthecountry,whichhad witnessed previous failed attempts to bid out the project. Moreover, there were no regulatory framework and awareness of the proposed structure in the public sector. The GoK faced several challenges in coordination with the Ministry of Finance onissuespertainingtoprojectstructureandtarifffixation.

Support and interventionEY played a vital role in resolving differences between the Ministry of Finance and the Planning Commission on the new PPP structure and in laying the foundation of a regulatory framework.

PPP transaction in development of an international deepwater multi-purposeportinKerala

Fundingthefirstgreenfieldmulti-purposeportatVizhinjamupfront was a challenge for the GoK. EY helped it avail the Central Government’s Viability Gap Funding (VGF) and leverage private sector’s capabilities to developamulti-purposeport.

Case Study 3

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EY’s PPP Transaction Advisory Services team advised the GoK on project structuring, bid documentation, process management in bids and stakeholder coordination in the Central Government, State Government and the private sector. EY helped in preparation ofadetailedfinancialappraisalreporttoestablish the requirement of the VGF and obtained approval from the Empowered Committee chaired by the Finance Secretary and Secretary, Department of Economic Affairs.

Furthermore, EY undertook various project marketing activities, leading to the successful closure of this PPP transaction.

Result and impactDevelopment of the Vizhinjam Port is envisaged to enhance Southern India’s capabilities to consolidate the logistics services required to partner in India’s relatively fast and sustainable growth story over the next 30 years by reducing our reliance on foreign ports. Vizhinjam Port can handleupto4mtwenty-footequivalentunits(TEU) when fully developed. The project has attracted private sector investment of nearly INR24.54b. Furthermore, the GoK will receive around INR8.18b in VGF from the Central Government and will itself contribute INR8.17b. The GoK has issued the Letter of Award to the selected bidder in July 2015 and will execute the concession agreement in August 2015. The selected private partner is expected to commence construction by November 2015.

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Overview and challengesThe absence of a mechanism to uniquely identify an individual resulted in multiple challenges in India, viz:

i. Inclusive Growth: Many residents, especially those coming from the weaker sections of the society were excluded fromreceivingvariousrightsandbenefits.Problemwasexacerbated in case of migrant labour

ii. Fraud reduction / Prevention: There are large number of instanceswherethedifficultyinverifyingthegenuinenessofidentify documents are misused by unscrupulous elements toenrollfakeusersforbenefits,claimbenefitsbelongingtosomebody else, etc.

iii. ProcessImprovement:Thedifficultyinverifyingtheidentitynecessitates introduction of laborious processes for identity verification.

iv. Subsidy Management: Government through its variety of schemes provides a variety of subsidies, pension and other benefitstodeservingsegmentsofthesocietywhichin2015costed the Government around Rs. 2.5 Trillion forming 4.24% ofGDP.However,thelastmileforreachingthisbenefitisalwaysachallengeonaccountofthedifficultyintrackingthebeneficiary.

UIDAI was set up by Government of India with a view to addressing these challenges, EY worked with UIDAI to establish theprojecttoissueauniqueidentificationnumberchristenedAadhaar based on biometric to each resident of India. As of April 2016 one bullion residents have already been enrolled in the Aadhaar system

Aadhaar Case Study

The Government of India spends over Rs. 2.5 Trillion annually in providing welfare benefitstocitizensthroughmultiple centrally sponsored schemes and programs, which for instance, costed the exchequer about 4.24% of GDP in FY 15.

Case Study 4

AADHAAR

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Support and interventionIn addition to helping UIDAI in managing the project to set up the Central Id Repository (CIDR), EY worked in close collaboration with union ministries, state governments and donor agencies across various sectors – banking, pension schemes, and supply of cooking gas amongst others, to drive Aadhaar enabled service delivery. Some of the key projects in this area are as under

CatalyzingAadhaar-basedDirectBenefitTransfer(DBT):EYpartneredwith the Ministry of Rural Development (MoRD) to accelerate the rate at which Aadhaar numbers were seeded in scheme database and bank accounts,inordertoexpediteDirectBenefitTransfer(DBT)forNationalRural Employment Guarantee Scheme (NREGS). By enabling electronic deliveryofNREGSwagepayments,millionsofhitherto-unbankedwageseekershavegainedaccesstomainstreamfinancialservices.

Reducing pilferages and leakages in LPG delivery: EY assisted oil marketingcompaniesindesigningabiometric-basedsystemforthedistribution of domestic Liquid Petroleum Gas (LPG).The objective was to curtail pilferage by ensuring authenticated delivery of domestic LPG to a customer base of over 100 million.

Driving Financial Inclusion in Jharkhand: EY assisted the Government of Jharkhand in streamlining the roll out of Government to Person (G2P) paymentsdirectlyintoAadhaarlinkedbankaccountofbeneficiaries.

Result and impactAadhaar-ledtransformationhashelpedharmonizationofgovernmentsectors and functions and addressed issues of transparency, access to finance,andthedeliveryofbenefits.

, Aadhaar seeding in NREGA database increased by more than 7 times to touch 45 million.5 crore records in one year with EY’s support to the Ministry of Rural Development (MoRD)

Around 30 million bogus LPG connections were detected and weeded out by Oil Marketing Companies using Aadhar as a platform, with program management support from EY.

TheDirectBenefitTransfer(DBT)ofG2Ppaymentshasbeenimplemented for pension payments to almost 0.55 million Lakh beneficiariesinJharkhandandisexpectedtobenefit4millionmoresuchbeneficiaries.

With enactment of Aadhaar Act in March 2106 giving a legal backing to Aadhaar,significanttransformationofservicedeliveryisexpectedinthenear future.

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Overview and challengesMicro, small and medium enterprises (MSMEs) play an important role in the industrial economy of the country and account for more than 45% of India’s manufacturing output. Despite its strong potential, India’s manufacturing performance has not been encouraging. Major constraints in the growth and competitivenessofMSMEsareaccesstofinance,technology,skilledmanpower,marketsandinfrastructuredeficiencies.Withan eye on addressing these challenges, EY has been assisting MoMSME, Government of India, in designing and executing Technology Centre Systems Program (TCSP), which will design and establish 15 new TCs for supporting MSMEs and also upgrade existing facilities. As one of the largest consulting assignments in the country, the project spans across several industries and sectors and encompasses multiple components.

Support and interventionEY is playing the role of Program Management Unit (PMU) in EY is playing the role of Program Management Unit (PMU) in executing this US$400m World Bank funded program. EY’s mandate consists of two phases.

Phase 1: This involved designing the program including activities tobecompletedoverasix-yearperiodtoachievetheoutcomesand results framework envisaged during program planning. It involved preparation of an inception plan and development of criteria for prioritization of sectors and technologies to be evangelizedbynewTCs,in-depthassessmentoftechnologyandskilldevelopmentneedsofselectedsectors,identificationandevaluation of leading practices, and development of a monitoring and evaluation framework for the program.

Technology Centre Systems Program to enhance technology and skill base of MSMEs

Eighteen Technology Centres across the country support micro, small and medium enterprises (MSMEs) by providing access to technology, skilled manpower and technical advisory services. EY has been assisting the Ministry of MSME to upgrade existing TCs and establish 15 new TCs across the country

Case Study 5

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Phase 2: Execution of the program includingprocurementoflong-termtechnology partners, cluster network managers, construction management consultant, national portal service providers, construction works contractors and equipment for the new and upgraded TCs. It also entails coordination, contract management, monitoring and evaluation, as well as capacity building.

Result and impactThe project is currently in its second phase, with EY having successfully completed the design phase of the project. TCSP will strengthen the current organizational model and performance management of TCs to achieve substantial transformational impact. Through this program an ecosystem of competitiveness will be established around the network of TCs which will improve access to technology, skills and markets for MSMEs in India. Performance indicators such as number of people trained, services to MSMEs, improvement in wages of trainees etc. are monitored through a strong M&E rigor and are likely to see a manifold increase at the end of this program.

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Overview and challengesEY is assisting the Government of Bangladesh (GoB) in designing, developing, deploying and using the National Enterprise Architecture (NEA) and Electronic Government InteroperabilityFramework(e-GIF),whichwillhelpindesigningbetter strategies, processes, plans, structures, technologies and systems across the Government. NEA and eGIF will be used to better tailor information systems for government agencies to achieve key objectives and outcomes, increase interoperability, improve asset management, reduce risk and lower costs of procurement. One of the key imperatives of this assignment is to establishacommonfoundationalplatformtoachieveaWhole-of-GovernmentapproachalignedwiththestrategicDigitalBangladesh vision.

Support and interventionBased on the NEA and eGIF structures as envisaged, each Government agency will be required to spell out its strategic goals and prepare a transformation plan to migrate from its current state in terms of business processes, technology and information, to its desired future state.

For a digital migration consistent with the Digital Bangladesh vision, EY will be assisting three ministries (ICT, Education and Food) to establish the enterprise architecture roadmap and developdemonstrablee-services.

Key interventions include:• DevelopmentofanNEAande-GIFframework,tobe

leveraged by the Government of Bangladesh• Establishing enterprise architecture for three select

Government organizations: ICT Division, Ministry of Primary and Mass Education and Ministry of Food

Digital Government Case Study

Establishing Enterprise Architecture and Interoperability Framework for Government of a South Asian nation

Case Study 6

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• Demonstrationofthreee-servicesforcitizen service delivery

• Implementation of NEA Bus (a Government middleware platform)

• Proposal of the Bangladesh National Enterprise Architecture Committee

• Governmental capacity building to ensure sustainability and uptake

Result and impactDevelopmentofNEAande-GIFwillassistthe GoB to unlock the true vision of Digital Bangladesh by improving collaboration between Government entities, promoting shared use of digital assets and improving the outreach of service delivery to the citizens. The standards, principles and recommendations were demonstrated throughthreee-serviceslaunchedontheNEA Bus. The NEA Bus is envisaged to consolidate critical Government services on a common standardized platform.

This will impact millions of citizens in Bangladesh by bringing Government services closer to their doorsteps. With the Bangladesh National Enterprise Architecture Committee structure in place, the“Whole-of-Government”thoughtprocess for conceptualizing, designing and developing critical initiatives would be institutionalized.

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Overview and challengesThe Chhattisgarh Infotech Promotion Society (CHiPS) is the IT nerve centerforthestate.Itisresponsibleforthee-governanceandITinitiatives across the state, with a view to enhance accountability, accessibility and transparency in the functioning of all departments of the state administration. EY is assisting CHiPS in many critical initiatives which include working on a CM Dashboard and providing advisory services to the CM’s Secretariat.

TheCMofficewasfacingachallengeinaccessingfact-based,conciseand insightful performance data of various departments and schemes fromacrossthestate.Thismadeitdifficultandtime-consumingforthe CM and his team to timely inspect and periodically review the state’s progress. The key factors underpinning EY’s engagement with the government were the need for a review mechanism that could help assess the impact of the key citizen improvement initiatives — leading to better allocation of program resources and budgetary support—andtheinstitutionofanadvancedlevelofe-governancethat, through a culture of digital focus, could deliver enhanced efficiencyandaccountabilityinthedeliveryofservicestocitizens.

Support and interventionEY is engaged with the government for this project at two broad levels:

• It functions as an independent think tank for providing advisory inputs on state governance policies, Cabinet Ministry guidelines/notes and department/schemes.

• It helps develop an automated set of dashboards that capture and present to the Chief Minister, key performance indicators (KPIs) of the state departments, schemes and districts. These KPIs are reviewed by the CM and the Secretariat to bring continuous improvement in state governance capabilities.

• The EY team has structured the CM Dashboard and advisory to the CM’s Secretariat in the following four areas:

Supporting good governance in Chhattisgarh

Case Study 7

The Chhattisgarh Infotech Promotion Society (CHiPS) is the IT nerve center for the state. It is responsibleforthee-governanceand IT initiatives across the state, with a view to enhance accountability, accessibility and transparency in the functioning of all departments of the state administration. EY is assisting CHiPS in many critical initiatives, which include working on a CM Dashboard and providing advisory services to the CM’s Secretariat.

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• Stateataglance:forprovidinganoverallviewofthecurrentscenariovis-à-vis the vision and mission of the state

• Initiative view: for depicting the overall condition of the initiatives, challenges, KPIs etc.

• Decisionsupportsystem:forprovidingparametersanddatafortakingdecisions and actions

District scorecard: for creating the district scorecard, which monitors and tracks the performance of districts on the basis of various KPIs and sectors such as healthcare, education and agriculture

As part of the project, EY executed key activities that formed the core methodology of the project. The activities included identifying critical KPIs for important state departments, schemes, and initiatives; developing an analytical framework (including visual interpretation, target and benchmarks) for KPIs that brings aspirational and actionable insights; implementing the KPI framework on an automated SAS visual analytics dashboard technology platform (for data loading, KPI calculation and KPI graphical visualization); and preparing a structureforgo-live,reviewandreportKPIs,datavariations,aberrationsandexceptions, and discuss these with key stakeholders as part of a continuous governance improvement process. The EY team selected nine departments, nine state schemes, PMO schemes, and critical state projects/initiatives for the creation of this dashboard. After workshops and discussions with key stakeholders,around180KPIswereidentifiedforgraphicalandanalyticalvisualization.

Result and impactThe CM Dashboard and advisory by EY to the CM’s Secretariat have helped in addressing and mitigating several challenges related to the state’s governance. These include:

• Embedding independent, innovative and leading practice perspectives in Government policies, guidelines, cabinet notes and department/scheme functioning

• MakingavailabledefinedKPIsandbusinessmetricsfordepartments,schemes and districts, which have high impact on the performance during execution

• Making the monitoring central and scheme deployments easy by assessing critical performance measures

• Mitigating data challenges in the state related to data collection, data quality, analysis, department data usage, and effective governance and data silos.

The CM Dashboard provides a comprehensive platform in which the data for the selected departments, schemes/projects and key performance areas for the state is seamlessly captured and available for interpretation with a click anytime, anywhere. This has led to higher involvement in progress review, quick showcase offact-baseddecisionmakingandenhancede-governanceinthestate.

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NCRGolf View Corporate Tower BNear DLF Golf CourseSector 42Gurgaon — 122 002Tel: +91 124 464 4000Fax: +91 124 464 4050

10th Floor, Tower D&E CyberGreen,DLFPhase-3,Gurgaon — 122 002Tel: +91 124 671 4400

3rd & 6th Floor, WorldMark-1,Asset–11, IGI Airport Hospitality District, Aerocity, New Delhi — 110 078 Tel: +91 11 6671 8000

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