Power of PPP for Technology driven markets in Maharashtra

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Power of PPP for Technology driven markets in
Maharashtra
Mr Dewang Neralla Director Chief Technology
Architect
Financial Technologies India Ltd (FTIL)
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Public Private Partnership (PPP /P3)

•  
• A system in which a government service or
  private business venture is funded and operated
  through a partnership of government and one or
  more private sector companies. (Source
  Wikipedia)
• A Brief
• PPP was established by the German Federal
  Ministry of Economic Cooperation and Development
  in 1999
• PPP has entered its second phase, Worldwide
• India not only tops the list among Asian
  countries but also in whole of the world in
  Public Private Partnership Projects

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Why PPP???

• Private sector participation could bring in -
• -    Quality human resources
• -     Large scale injection of capital private
  finance
• -     Technical and managerial expertise
• -     Efficiency in management of capital
• -     Innovations
• -    Better responsiveness to consumers needs
  and satisfaction
• -     Advanced Technology

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The Result .

• Overall increase in the Quality of Public
  Service
• Enhanced Work Quality - Combined with Social
  Responsibility

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PPP Options

• - PPP opens a spectrum of possible
  relationships between public and private actors
  for the cooperative provision of infrastructure
  services
• BOO Build Own Operate, Supplier-Supplier
  relationship
• BOT Build Operate Transfer, Purchaser-Supplier
  relationship

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Possible Areas of PPP Projects

• Banking Sector Warehousing, Credit, etc.
• Agriculture Sector
• Spot market (NSEAP), Logistics (NBHC)
• Transportation Sector
• BPO KPO
• Brokering, Demat other Financial Services
• Consultancies
• Hospitality industry
• Telecommunication
• Media Broadcasting

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Some Indian Examples Joining Hands
(1) Picture of Mumbai Pune Express Highway
(2) Traditional Bill Collection Versus eSeva (an
example from Andhra Pradesh)
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Maharashtra Ctrl Select Enter

• Advantage Maharashtra
• Largest economy in the country, with high per
  capita income
• Highly urbanized (42) literate population
  (77)
• Large FDI inflows Favorite investment
  destination
• Industry friendly supportive environment
• Mumbai, Capital of Maharashtra is the Commercial
  Capital of India.
• A forward step towards IT Revolution
• IT and ITES policy 2003
• (The main objective of the IT and ITES
  Policy, 2003 is to make Maharashtra the most
  favored destination for investments in the IT and
  ITES industry.)

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Need of the Hour - Green e-Revolution???

• Maharashtra Economic Growth in the Information
  Age
• MYTH e-Governance is the only IT enablement as
  far as PPP is concerned
• Strategic Innovation, and not Tactical
  Automation, is the key
• Growth driving through enabling the rural sector
  to access markets
• Bridging the digital divide by the proper use of
  ICT

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Excerpt from President Dr A.P.J Abdul Kalams
address to the joint session of Parliament

• A key element of "Vision 2020" would be
  "Providing Urban amenities in Rural Areas
  (PURA)". More than two-thirds of Indias
  population lives in rural areas. We need to give
  a new thrust to their all-round development
  through a mega mission for their empowerment.
  This is best achieved through provision of four
  critical connectivities Physical Connectivity by
  providing good roads, transport services and
  quality power Electronic Connectivity by
  providing reliable communication networks
  Knowledge Connectivity by establishing more
  professional institutions and vocational training
  centres, schools with high quality
  infrastructure, teachers who are devoted to
  teaching, production centres for rural artisans,
  primary health centres, recreation centres, etc
  and Market Connectivity that will help realize
  the best value for the products and services of
  rural people, and constantly expand and enrich
  employment opportunities for them. The model
  envisaged is a holistic habitat that would
  improve the quality of life in rural areas and
  also help in de-congestion of urban areas.

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Issue of Certificates and Licenses
Supply of inputs
Procurement of Produce
Supply of consumer produce services
Development info projects, programs, schemes
feedback
Rural Citizen
Access to Markets
Knowledge info useful for economic activities
Education, training to enhance employment
economic opportunity
Entertainment info for social needs
Delivery of health educational services
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Critical Success Factors

• Access Reasonable ICT infrastructure
• Applications Content providers and application
  providers for services such as
• Buying/Selling
• Weather Information
• Research information on land tillage etc
• General education for seeds etc.
• E-Procurement for other essentials

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Exchanges

• New generation exchanges such as MCX, NSE, BSE
  are best example of technology driven markets
• Major elements
• Trading On-line matching of incoming orders
• Clearing Funds and Stock Settlement in T2 days
• Networking Inter-connect through a wide array of
  technologies VSAT, leased line, Internet,
  wireless
• Advantages
• Common aggregation of demand and supply
• Real-time price discovery
• Increased participation

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Examples of PPP

• NSEAP Interconnecting and providing price feeds
  to 290 Mandis across Maharashtra
• eSevaOnline, AP Providing services to the
  citizens
• Gyandoot, Madhya Pradesh Creation of a village
  level intranet for information access
• Akashganga, Gujarat and Maharashtra Automation
  of milk collection centres

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FTIL Groups Contribution MCXs IT Initiatives

• FTIL
• Software solutions for Service sectors Banking,
  Equity Commodity markets, Forex, etc.
• Establishment of DGCX in Dubai
• Web IT Services to Tokyo Commodity Exchange
  TOCOM)
• Pioneer in introducing market-wide STP service
  utility STP Gate TM, for Fund Houses,
  Custodians Brokerage Houses
• Powered 70,000 live trading engines (FT
  Engines TM)
• MCX
• Leading commodity exchanges offering wide basket
  of agriculture and other commodities
• Commodity Suchana Kendras Mumbai, Pune, etc.
• BSNL, MTNL Network SMS service for real time
  data, and more.

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Summarizing

• A PPP model for technology driven markets can
  become a catalyst to ensuring economic prosperity
  in the region
• Maharashtra uniquely positioned to take advantage
  of this because of Better Infrastructure,
  Skilled man-power, Ease in Technology absorption

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