June 2015
Signpostt
EY newsletter for Government and the Public sector
Inside:
Smart ticketing to improve
transport infrastructure
and enable increased
efficiency in order to enhance
commuter experience
2
Megha Health
Insurance Scheme
4
Infrastructure planning
and investment promotion
in Chhattisgarh
6
Development of National
Occupational Standards for
supporting skill in India
8
It gives me great pleasure to present the fourth edition of Signpost, EY’s newsletter on the
Government and how we are supporting it in its initiatives.
Like with previous editions, this edition also contains four case studies on ongoing and completed
projects. These case studies will give you an insight into our capabilities and the success we have
achieved in managing large and complex government projects in a time-bound way.
This edition aims to bring to you new approach to smart ticketing for improving accessibility
to integrated transport network, health insurance with private sector participation, industrial
infrastructure and investment promotion to improve quality of life of citizens and enabling efficient
framework toward development of National Occupational Standards (NOS) for various sectors such
as beauty and wellness, food processing etc. We hope you like the fresh outlook and approach on
some of the significant government programs in India.
To increase patronage, reduce fraud and increase accessibility to an integrated transport network
for the commuters, Kochi Metro Rail Limited (KMRL) along with Kochi Unified Metropolitan
Transport Authority (UMTA) introduced the smart ticketing system for fare collection. It is combined
with flexible ticket purchasing methods and the smart card is integrated with other smart-enabled
utilities such as retail, banking, entertainment etc.
In order to combat increased health care expenditure, Government of Meghalaya (GoM)
implemented the Megha Health Insurance Scheme (MHIS) with the help of International Finance
Corporation (IFC) and World Bank to create a sustainable and practical health insurance scheme
for all the residents of the State , including existing categories of RSBY beneficiaries but excluding
State and Central Government employees.
The last two initiatives are a step toward improving the overall quality of life of the people.
Government of Chhattisgarh (GoC) planned and developed industrial infrastructure in the
state along with a better investment ecosystem to create jobs and improve public services. EY
helped in planning infrastructure development and bringing in investments in emerging sectors
such as defense, IT, textiles etc. To boost the skill initiative in India, it was essential for National
Occupational Standards (NOS) to come up with standards to act as an input to training curriculum
and help in assessment of the potential job candidates employed by the respective industry.
Do continue to share your feedback and ideas with me at gaurav.taneja@in.ey.com I look forward to
hearing you.
Kind regards
Gaurav Taneja
India Government and Public Sector Leader
Signpost, EY newsletter for Government and public Sector
2
Smart ticketing to improve transport infrastructure and enable
increased efficiency in order to enhance commuter experience
Implementation of the smart ticketing project will help the transit operator to increase
patronage, reduce fraud, reduce operating cost, have rapid cash collections and increase
accessibility to an integrated transport network for commuters.
•
For KMRL increased customer patronage, improved
product validation, smart card acting as e-Wallet
(electronic Wallet), access through digital channels
— all this will translate into improved customer
interaction and increased revenue augmentation.
The financial institution will offset the investment
required by KMRL toward capital and revenue
expenditure of smart ticketing program, pay royalty
for customer access and share non-fare FI revenue
with KMRL.
•
For FI will lead to harness big data collected from
millions of customer’s journey, form a more accurate
customer demand forecast and design and deliver
seamless and integrated customer experience. KMRL
would also share 4% of ticketing transactions with FI.
•
For commuter who is central to this transformational
project will be assured of a holistic, integrated,
personalized experience and result in the business
culture of “Customer First” along with bringing
loyalty benefits. Beyond public transportation,
improved city design and increased citizen
participation will mean a smart environment and
living.
Overview and challenges:
Kochi Metro Rail Limited (KMRL), along with Kochi Unified
Metropolitan Transport Authority (UMTA), envisioned
introduction of Common Mobility Card (CMC) across all
identified modes of public transport in Kochi while keeping
the convenience and experience of the commuter as
the key objective. KMRL wanted to introduce a common
mobility card, which would be a transit-cum-EMV (Europay,
MasterCard and Visa)-based prepaid/debit/credit card. It
could be used for transit and merchant payments. This
card can be implemented through a close integration
between transit operators, card technology providers
and financial institutions (FI). EY was selected by KMRL
to design a business strategy and financial model for onboarding of financial institutions.
Support and intervention:
EY assisted KMRL in designing a smart ticketing service
using open payment standards, which converts the metro
travel smart card into a general purpose payment card
using EMV-based payment standards. EY has designed
a new model that attracts financial institutions along
with their technology partners to invest and deliver the
smart ticketing service. The model has resulted in capital
expenditure (Capex) savings of around US$45million
(estimated) for KMRL. It has also garnered additional
benefits in the form of annual royalty amounting to US$34
million for more than 10 years from FIs for giving them
access to the commuter base with exclusive co-branding
rights, and additionally a share of non-fare FI revenue from
conventional merchant commissions on card transactions,
outside transit. EY assisted KMRL to create a business
strategy, financial modelling, and bid management and
vendor selection.
Result and impact:
FI-led consortium model offers truly a win-win for transit
operator, FI and commuters. The transit-cum-EMV-based
smart card will have all the capabilities of being a CMC
for multiple modes of transport in Kochi and also enable
the usage of co-branded smart cards on any merchant
terminal to accept retail EMV cards according to the
standards of the Reserve Bank of India (RBI).
EY’s services
EY’s IT Risk and Assurance Services practice
maintains an exclusive focus on government clients
and their individual needs through our Government
Advisory business unit. The focused Government
Advisory Group provides advisory and consulting
services in e-Governance, IT Governance, Information
Security and Risk Management, Third-Party Audit,
Nationwide contingency planning along with budget
planning process and review.
For more details contact:
Rahul Rishi
Partner – IT Risk and Assurance, EY
Tel: +91 11 43633183
Email: rahul.rishi@in.ey.com
“EY has closely worked with KMRL in developing
the innovative and unique model of Smart Card
Ticketing. EY did a great job in designing this
business model which offers great advantages
to KMRL as well as commuters who will have
access to co-branded smart cards to meet
their transport requirements and also other
mercantile and internet transactions”
Ved Mani Tiwari
Director (Systems), KMRL
3
Signpost, EY newsletter for Government and public Sector
Signpost, EY newsletter for Government and public Sector
4
Megha Health Insurance Scheme
Megha Health Insurance Scheme(MHIS) has been rolled out as a universal health insurance scheme
(UHIS) in Meghalaya, utilizing the prevailing RSBY framework to provide health insurance to
residents of the State, including existing categories of RSBY beneficiaries but excluding State and
Central Government employees.
Overview and challenge
Result and Impact
Over the years, health care expenditure has increased
manifold. It has also become one of the reasons, which
is driving already poor people toward abject poverty. The
Government of Meghalaya wanted to address this concern
while creating a solution on the back of RSBY framework.
The prevailing RSBY scheme in the state had the following
feature:
Under the scheme, beneficiary families (five members)
are entitled up to INR160,000 coverage at the time of
hospitalization on a floater basis.
•
Coverage only to Below Poverty Line (BPL) families
•
Cover limited to INR30,000 per family per year
•
Cover for hospitalization care; catering to diseases
treated in the secondary care settings.
Government of Meghalaya (GoM) intended to implement
the Megha Health Insurance Scheme (MHIS) with the
help of IFC and World Bank to create a sustainable and
practical health insurance scheme for all the residents
of the State. The MHIS is conceived to leverage on the
funding available under RSBY from the Ministry of Labour
and Employment, Government of India for BPL and other
specified categories.
Support and Intervention
The Government of Meghalaya appointed IFC as the
Lead Transaction Advisor to design the Megha Health
Insurance Scheme (the Scheme) and to conduct the bid
process for appointment of the insurer pursuant to the
Scheme (the Project). IFC engaged EY as the Consultant
for the project.
EY assisted the IFC and GoM in structuring the MHIS
project and also to carry out the transaction process.
It focused on assisting in conceiving the new scheme,
defining the package and pricing for the newly
introduced packages. EY also helped in defining the
State Nodal Agency organizational structure, carrying
out the transaction, preparing a framework for
monitoring and evaluation, and evolving mechanism for
improving enrolment, empanelment and utilization.
The number of identified packages (medical and
surgical procedures) increased from 1,036 to 1,697.
The enrolment increased to 63.1% of the data touched.
The number of hospitals empaneled under the scheme
increased from 65 (in RSBY) to 170 in MHIS including 10
out of 11 private hospitals in the State. Utilization also
increased several times during the year demonstrating the
usefulness of the scheme.
The State Nodal Agency had 18 full-time employees (FTEs)
as compared to 0.5 FTE in the previous year. Therefore,
the interventions suggested that as a part of MHIS made
substantial changes in the scheme.
Partner identified – ICICI Lombard General Insurance.
EY’s Public Private Partnership Services focus on
development of infrastructure and provisioning of
related services through private sector participation.
It aims to develop efficient assets and effective
service delivery systems by leveraging the potential
of the private sector. As part of our service, we
advise government bodies on conceiving relevant
projects, performing technical and financial viability
studies, structuring and implementing optimal risksharing mechanisms and putting in place bid process
management systems to select private players. We
also advise governments on post-award activities
including financial closure and project management.
For more details contact:
Abhaya Krishna Agarwal
Partner and Leader, Commercial and
Infrastructure, Government Services, EY
Tel: +91 11 43633060
Email: abhaya.agarwal@in.ey.com
5
Signpost, EY newsletter for Government and public Sector
Signpost, EY newsletter for Government and public Sector
6
Infrastructure planning and investment promotion in
Chhattisgarh
Government of Chhattisgarh (GoC) wanted to plan, prioritize and develop “enabling industrial
infrastructure” in the state and promote investments in emerging sectors. The EY team helped the
State Government in planning infrastructure development and bringing in investments in emerging
sectors such as defense, textile, IT, electronics, food processing, etc.
Overview and challenge
Result and Impact
The program was initiated with an aim to deliver increase
in the State’s gross state domestic product (GSDP), job
creation and improved public services to improve the
quality of life of the people of Chhattisgarh. To achieve
this objective, the GoC wanted to develop industrial
infrastructure in the state along with a better investment
ecosystem. The Government also wanted to attract private
investment for the development of industrial infrastructure
through public private partnership (PPP). As Chhattisgarh
has been front runner in attracting investment in the State
only in core sectors such as power, coal, cement, and
steel, bringing investment in non-core sector and creating
“enabling industrial infrastructure” for the same was one
of the key challenges of the assignment.
Industrial infrastructure plan was developed with
identification of new regions of growth; special projects
were detailed and transaction executed for Electronic
Manufacturing Cluster, Food Park, and Textile Park.
Investment proposition for newly identified sector were
modeled. The team worked cohesively to improve “Ease
of doing business” status of the state by simplifying the
approval processes and developing best in class policies
such as Industrial, IT, and Innovation policy. IT/ITeS sector
investment roadmap was developed with strong focus on
making the State as innovation hub of the country.
Support and Intervention
The project is being implemented strategically with two
components — industrial infrastructure development
and investment facilitation/promotion working in
tandem with each other. The first component involved
physical, strategic, investment and process packing
of projects, covering feasibility studies, project
structuring, financial modeling and bid process
management. The second component focused on
identifying the priority sectors, suggesting regulatory
and non-regulatory reforms to make investor-friendly
ecosphere and attract investments.
The GoC successfully connected with top-hundred and
several medium-term investors, which helped create a
strong brand for the state as the next potential investment
destination.
EY’s Commercial Infrastructure services focus on
development of infrastructure and provisioning of
related services through the participation of the private
sector and regulatory/non-regulatory measures. It
aims to facilitate development of state by efficient
management of assets and effective service delivery
systems by leveraging the potential of the private
sector. As part of our service, we advise government
bodies on developing models of sector development,
designing relevant projects, performing technical
and financial viability studies, and putting in place
investment promotion and facilitation mechanism
to engage private players in state growth. We also
advise governments on post-project selection activities
including financial closure and project management.
For more details contact:
Siddhartha Das
Executive Director
Tel: +91 124 464 4202
Email: siddhartha.das@in.ey.com
“Siddhartha, Sonia and team, on this most
prestigious assignment in the state, have displayed
strong commitment and are committed to driving
innovation and ensuring global experience
reaching out to us which helped us attain our
objective more effectively and in much lesser
time. The meticulous delivery of the EY team
reflected professional and timely approach
towards the program. Working closely with the
team, I look forward to achieving many major
milestones in private sector growth in our state.”
Mr. Sunil Mishra,
Managing Director,
Chhattisgarh State Industrial Development
Corporation, Government of Chhattisgarh
7
Signpost, EY newsletter for Government and public Sector
Signpost, EY newsletter for Government and public Sector
8
Development of National Occupational Standards for supporting
skill in India
EY has been awarded multiple mandates in the last few months to develop National Occupational
Standards (NOS), which are key steps in the skill development journey in India. The work is delivered
across various sectors such as automotive, iron and steel, mining, media and entertainment,
handicrafts and carpets, beauty and wellness and food processing. This involves multi-stakeholder
interactions in close coordination with the respective Sector Skill Councils (SSCs) and National Skill
Development Council (NSDC).
Overview and challenge
Development of NOS is the stepping stone to the skill
initiative, since the standards act as inputs to developing
training curriculum and assessment as well as certification
of trainees. This contributes to the standardization in
the skill development domain, enhancing employability
and increasing skill mobility for the trained manpower.
The standards play an important role in bridging the gap
between vocational training and industry requirements.
EY has been supporting NSDC and SSCs for many years.
Some of the key aspects in developing the NOS and
Qualification Packs (QP) are close collaboration and
involvement of industry at each stage of the project. These
are first of their kind of projects in the country.
Support and Intervention
To ensure effective delivery, the project team deployed
a robust achievable approach. It identified various
key players (across small, medium and large scale
industries) in the respective sectors and collaborated
with key industry professionals to bring in domain
expertise and build buy-in for the initiative.
Furthermore, the team rolled out surveys to understand
the sector growth, key roles and anticipated manpower
requirements. This provided the database of key roles
constituting around 80% of entry-level jobs in each of
the sectors.
The team developed the occupational map for each
of the sectors and sub-sectors highlighting key
occupations and career progressions (horizontal,
vertical and diagonal) within these occupations across
National Skills Qualification Framework (NSQF) levels
1 to 10. It conducted a detailed functional analysis
of identified functions articulating key roles within
each of the functions, role-related specifications (i.e.,
qualification, experience and training requirements),
key activities and key skills applicable to various
identified roles.
For the identified role, the team developed QPs and
NOSs detailing the job requirements, activities, skills
and assessment criteria. The project team also applied
benchmark practices from various countries such as the UK,
Canada, Germany, Japan, New Zealand, and the US, which
have undertaken similar initiatives in the past.
Furthermore, the team conducted workshops and one-on-one
interactions to ensure industry endorsement for finalized
occupational standards. The standards were then presented
at NSDC’s Qualifications Review Committee (QRC) for
approval leading to the publication for national deployment.
Result and Impact
EY has provided extensive support and deployed robust
methodology to successfully conclude work with various
sectors such as automobile, media and entertainment, iron
and steel and mining and is currently working with handicrafts
and carpets, food processing and beauty and wellness sectors.
Various SSCs are now using the QPs and NOSs for developing
training content and empanelling training and assessment
agencies. With these steps undertaken, the SSCs will be ready to
roll out large-scale skilling programs.
With the contribution in development of QP and NOSs, EY is well
positioned in creating significant impact through downstream
activities. This is a key strategic part of our endeavor to being a
significant player in the entire skill development value chain.
EY’s Skill Development services focus on providing
services that bridge the skill demand and supply gap across
various sectors to serve the national skills agenda. The
team is currently undertaking some of the largest integrated
skills projects in the world.
For more details contact:
Anurag Malik
Partner, People & Organization,
Business Advisory Services, EY
Tel: +91 124 6714017
Email: anurag.malik@in.ey.com
“The content of the Qualification Packs
created by EY was detailed and exhaustive.
The quality of the QP NOS was appreciated
by the industry and relevant stakeholders.”
Anaam Sharma,
CEO,
Food Industry Capacity and Skill Initiative (FICSI)
“The QP NOS for each job profile presented by
EY were very detailed yet crisp and exhaustive
and appreciated by all the Industry Players
present.”
Annu Wadhwa,
COO,
Beauty and Wellness Sector Skill Council
(BWSSC)
9
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EYIN1507-070
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intended for general guidance only. It is not intended to be a substitute
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Ernst & Young LLP nor any other member of the global Ernst & Young
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