Information and Communication Technology Based Rural Business Project

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

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

3. Objective To develop models for Information and Communication Technology based service enterprises in rural areas e.g. PCO-ATMs

4. 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

5. 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.

6. 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

7. MaTIS Uploading local data Downloading As needed STEMS Response Relevant Information STEMS STEMS Request for Information Registration Response Market & Technical Information Response

8. FINeSS, Response E-receipt Request STEMS STEMS E-Passbook Registration Updated e-passbook Printed Receipt Customer Financial Transaction Credit, Savings and Insurance Services STEMS

9. 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

10. 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

11. 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

12. Budget in Rs Lakhs • Study and Consultations 5 • Prototype Development 10 • Field Trial 10 • Fine Tuning & Roll out 5 • Total 30 (Plus an office to operate in Bhopal and fellowship to the proposer)

13. 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

14. Thank You Suggestions welcome to subodh@fulbrightweb.org