The Federation of Indian Chambers of Commerce and Industry (FICCI) is planning to ask the government for allocating a share of the e-governance projects to SMEs in India. Arun, convener, IT and Communications Panel for FICCI, in conversation with V. Sudhakshina of CyberMedia News, reveals the details of this proposal as well as the role of SMEs in the UID Project.

What percentage of e-governance projects FICCI is proposing to the government to be given for SMEs?

It is important to recognize that e-Governance projects are not small in nature. This, hence, necessitates that companies with the financial capabilities are given a bigger size of the pie, especially during the initial stages. At the same time, it is also important to carve out opportunities for the benefit of SMEs.

For starters, SMEs can be allocated 10 per cent of the e-Governance projects. A major share would be done by State-owned NIC and major IT providers.

The key here becomes identifying and miniaturizing contracts such that it is viable for SMEs to participate. Once this initial process has matured, a stake higher than the 10 per cent can possibly be explored.

Based on the nature and scope of the project, there could also be possibilities of major IT providers made to outsource parts of the projects to SMEs while remaining focused on their core domains.

Which are the states in India where the projects would be allocated initially?

E-Governance projects have been initiated in a good number of states across India. With governments thrust on developing Tier 2 and 3 cities, every state will therefore want to initiate and implement these projects starting from the smaller cities.

For example, many of the e-Governance initiatives in Tamil Nadu began in Krishnagiri and Trichy districts and are now being implemented in other cities.

What role can SMEs play in the government’s UID Project ?

SMEs can share the load in any of the areas of the project such as data collection, data retrieval / conversion, data management and processing (including verification), manufacturing of UIDs, managing the distribution process, citizen support.

Are SMEs gaining any share from the government’s unique identity project , if yes the how much?

Not sure at this stage. It's too early to comment. But a 10 per cent share for starters would be appreciable.

How would this proposal benefit the SMEs?

Involving SMEs in the biggest e-Governance project of the Government of India would send the right signals to SMEs within as well as outside of the IT industry. It will certainly encourage SMEs, while making sure that the IT majors are not getting undue advantage.