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Context

• The Common Services Centres Special Purpose Vehicle (CSC SPV) celebrated its establishment day in New Delhi.
• Common Services Centres Special Purpose Vehicle completes 15 glorious years of its establishment.

About Common Services Centres (CSCs)- a Special Purpose Vehicle (SPV)

• Common Service Centres (CSC) are physical facilities/ internet enabled access points designed to deliver Government of India e-Services to rural and remote locations where computer and Internet access was previously limited or non-existent.
• These centers operate on a multiple-services-single-point model, allowing for a variety of transactions at a single geographical location.
• They serve as access points for essential public utility services, social welfare schemes, healthcare, financial, education, and agriculture services, as well as numerous B2C services to citizens in rural and remote areas.
• The pan-India network of CSCs addresses the country's regional, geographic, linguistic, and cultural diversity, supporting the Government's goal of a socially, financially, and digitally inclusive society.

History

• The CSC project is a strategic element of the National eGovernance Plan, approved in September 2006.
• It is part of the Integrated Mission Mode Projects under this plan. The initiative, known as "CSC e-Governance Services India Limited," was incorporated on 16 July 2009.
• The implementation of the CSC project follows a Public–Private Partnership (PPP) model, with a total project cost of ₹5742 crores over four years, shared between the Government (30% or ₹1649 crores) and private finances (70% or ₹4093 crores).
• The central and state governments' contributions are ₹856 crore and ₹793 crore, respectively. By 31 January 2011, 88,689 CSCs had been established across thirty-one States and Union Territories, with full rollout in eleven states and substantial progress in others. The goal was to complete the rollout of 1,00,000 CSCs by March 2011.

Objectives

The CSC's objectives are:

• Access to Information: Provide information to remote and rural citizens.
• Delivery of Public Services: Facilitate both Government to Consumer (G2C) and Business to Consumer (B2C) services.
• ICT for Rural Empowerment: Empower socially disadvantaged people for inclusive growth through information and communication technology.
• Access to Quality Education and Skill Upgradation: Offer educational and training opportunities.
• Access to Cost-Efficient and Quality Health Services: Provide healthcare services.
• CSC as a Change Agent: Promote rural entrepreneurship, community participation, and collective action for social improvement.

The CSC model aims to integrate profit-making with social services into a sustainable business model to drive rapid socio-economic change.

Functions

CSC services include:

• G2C Communication: Health, education, agriculture, HR development, employment, rights, disaster warnings, RTI, etc.
• Information Dissemination: Interactive kiosks, voice and local language interfaces, web browsing.
• Edutainment: Group interaction, entertainment, training, and empowerment spaces.
• eGovernance & eServices: Market information (eKrishi), banking, insurance, travel, post, eForms for government services.
• C2G Kiosk: Grievances, complaints, requests, and suggestions.
• Financial Inclusion: Payments for schemes like NREGA.
• Healthcare: Telemedicine and remote health camps.
• Agriculture and Rural BPO: Various support services.
• IRCTC Ticket Booking and Online Bill Payments: Ticketing and bill payment services.
• Telelaw: Legal services via telecommunication.

CSC 2.0 Scheme

• Launched in 2015, the CSC 2.0 scheme aimed to expand the outreach of CSCs to all Gram Panchayats across India.
• By 2019, the scheme targeted setting up at least one CSC in each of the 2.5 lakh Gram Panchayats and strengthening existing CSCs.
• The scheme focused on consolidating service delivery through a universal technology platform, enhancing access to e-services, particularly G2C services.
• The CSC Grameen eStore App, powered by MiGrocer, was developed under this scheme.

Key Features of CSC 2.3 Scheme:

• A self-sustaining network of 2.5 lakh CSCs in Gram Panchayats.
• A large bouquet of e-services through a single delivery platform.
• Standardization of services and capacity building of stakeholders.
• Localized help desk support.
• Sustainability of VLEs through maximum commission sharing.
• Encouragement of women as VLEs.

Project Components

The project components of CSC include:

• Content & Services: Various e-services and content offerings.
• Technology: Infrastructure and technological support.
• Connectivity: Ensuring reliable internet and communication connections.
• Capacity Building: Training and empowering stakeholders.
• Business Model: Developing a sustainable business model for CSC operations.

Required CSC Infrastructure:

• Room/building of 100-150 sq. ft.
• Two PCs with UPS and battery backup or portable generator.
• Licensed Operating System (Windows 7 or above).
• Two printers (Inkjet + Laser).
• Minimum 2 GB RAM and 250 GB Hard Disc Drive.
• Digital camera/webcam.
• Wired/wireless/V-SAT connectivity.
• Biometric/IRIS authentication scanner.
• CD/DVD drive and UPS integration.

Revenue Support

• To support the operational phase of CSCs, the Government provides revenue support under the "Guaranteed Provision of Revenue from Governmental Services" scheme.
• This support amounts to ₹3304 per CSC per month, shared equally by the Union and State Governments.
• The exact amount of support is determined through a price discovery mechanism, with a cap set at 50% of the normative value.

Significance of Common Services Centres (CSCs) and Digital Governance

Enhancing Digital Inclusivity:

• Common Services Centres (CSCs) play a pivotal role in democratizing e-government services.
• They bridge the gap for individuals lacking digital literacy or internet access, particularly in rural areas.
• By providing essential services such as banking, balance checks, deposits, and crop insurance, CSCs promote financial inclusion and ensure that even those in remote locales benefit from government schemes and services.

Empowering Women Entrepreneurs:

• CSCs have been instrumental in fostering micro-entrepreneurship among women.
• These centres enable women to start and manage businesses from home, navigating socio-cultural barriers that might otherwise limit their opportunities.
• As of 2023, India has over 5 lakh CSCs, with a significant number being operated by women.
• This empowerment is crucial in light of the low and decreasing labour force participation of women in India.
• According to CMIE data from April 2022, 31% of Indian women aged 25-29 were unemployed compared to 11% of men in the same age group. The economic opportunities provided by CSCs help address this disparity, offering women profitable self-employment and improving their socio-economic status.

Boosting Income and Social Networks:

• Research conducted in Karnataka by Azim Premji University revealed that female CSC entrepreneurs earn an average income of Rs 18,500, slightly more than their male counterparts.
• Additionally, starting a CSC often leads to increased social interaction, expanding women's social networks and enhancing their decision-making power both at home and in their communities. This increased engagement contributes to their overall well-being and social standing.

Challenges and Solutions

Despite their benefits, CSCs face several challenges.

Viability  and Unethical Practices

• Intense competition can threaten their viability, and some centres have resorted to unethical practices to increase revenue. This has led to the suspension of CSC licences in some states, affecting both revenue and access to services.
• Effective oversight and grievance redressal mechanisms are essential to address these issues and ensure the program's success. Kerala’s Akshaya Kendras provide a model for effective monitoring and management.

Financial Barriers and Digital Literacy:

• Starting a CSC requires a substantial investment, averaging around Rs 1.2 lakh for essential equipment.
• Many entrepreneurs self-finance this investment, which can be a barrier for those without savings or credit access.
• While government schemes like Jan Dhan Yojana and MUDRA Yojana aim to improve financial inclusion, credit access remains a challenge.
• Furthermore, digital literacy is a significant concern; many women CSC operators rely on male family members for technical support, limiting their independence.
• Training programs to enhance digital skills are vital for boosting women’s entrepreneurial prospects.

Bridging the Digital Divide:

• India's digital divide is marked by disparities in internet access, quality of service, and content availability.
• While urban areas and younger generations have largely embraced digital technology, rural areas often lag behind due to infrastructure limitations, financial constraints, and lack of digital literacy.
• The digital divide impacts education, healthcare, and economic opportunities, disadvantaging those in disconnected regions.

Future Directions:

• To address these issues, a collaborative effort between the government and private sector is crucial.
• Initiatives like the Digital India programme have made progress, but there is more work to be done.
• Efforts should focus on developing infrastructure, enhancing digital literacy across all demographics, and providing content in regional languages.
• Innovations that cater to the unique challenges of rural India, such as low-cost devices and offline content solutions, will further help narrow the digital divide.
• Ensuring equitable digital access is essential for India’s holistic national progress and its aspiration to become a global digital leader.

SUMMARY CSC e-Governance Services India Limited The Common Services Centres (CSCs) a Special Purpose Vehicle (SPV), are internet enabled access points that provide last mile access to various e-governance services through digital connectivity to translate the dream of Digital India into a reality. CSCs offer access to e-services, delivering essential government and public utility services, social welfare schemes, financial inclusion services, health care and agriculture services, apart from a host of B2C services. CSCs have also been trying to bridge the gaps in digital literacy and skills of rural citizens through a range of literacy initiatives focused on digital, financial and legal literacy and e-learning and skill development courses. CSCs contribute to Government’s mandate of a digitally, socially and financially inclusive society by improving access to governance and services in rural and remote areas. The growing bouquet of services offered have transformed CSCs into hubs of economic activity, encouraging rural entrepreneurship and empowering communities in rural areas. Through collaborative framework, the objective of CSC is to integrate the twin goals of entrepreneurship and social services, into a sustainable business model for achieving rapid socio-economic change in rural India. Vision of CSC SPV To develop CSCs as a reliable and ubiquitous IT-enabled network of citizen service points connecting local population with government departments, business establishments, banks, insurance companies and educational institutions, with an impact on primary, secondary and tertiary sectors of the country’s economy. Service Through CSC At present, 32 central Government services are offered to the citizens through the CSC network. A large number of State G2C services, varying from 10 to 174, are also delivered through CSCs in collaboration with various State Governments and State Government organisations. Services of statutory entities like UIDAI and Election Commission are also delivered through CSC. Apart from this, other services include Digital Literacy and other educational services; Skill Development initiatives, Financial Inclusion services like Banking, Digi Pay, Insurance, Pension; Healthcare services; etc. A wide range of B2C services are also available like Utility Bill Collection, IRCTC ticketing, Utility Bill Payment, ECommerce, E-Recharge, Tours & Travels, etc.

PRACTICE QUESTION Q. Discuss the role of Common Services Centres (CSCs) in promoting digital inclusion and socio-economic empowerment in rural India. Highlight the key challenges faced by CSCs and suggest measures to address these challenges to enhance their effectiveness in delivering government services and fostering entrepreneurship.

SOURCE: PIB