Digital India is an umbrella programme that covers multiple Government Ministries and Departments. It weaves together a large number of ideas and thoughts into a single, comprehensive vision so that each of them can be implemented as part of a larger goal. Each individual element stands on its own, but is also part of the entire Government. Digital India is implemented by the entire Government and being coordinated by the Department of Electronics & Information Technology (DeitY).
Infrastructure as a Utility to Every Citizen
Governance and Services on Demand
Digital Empowerment of Citizens.
Broadband Highways - This covers three sub components
Universal Access to Mobile Connectivity - The initiative is to focus on network penetration and fill the gaps in connectivity in the country.
Public Internet Access Programme - The two sub components of Public Internet Access Programme are-
e-Governance – Reforming Government through Technology - Government Business Process Re-engineering using IT to improve transactions is the most critical for transformation across government and therefore needs to be implemented by all ministries/ departments.
The guiding principles for reforming government through technology are:
Other aspects of e-Governance include:
e-Kranti (NeGP 2.0) – Electronic delivery of services- Some of the Mission Mode added to e-Kranti by the Apex Committee on National e-Governance Plan (NeGP) headed by the Cabinet Secretary are:
Information for All- Open Data platform and online hosting of information & documents would facilitate open and easy access to information for citizens. Government shall pro-actively engage through social media and web based platforms to inform citizens. MyGov.in has already been launched as a medium to exchange ideas/ suggestions with Government. It will facilitate 2-waycommunication between citizens and government. Online messaging to citizens on special occasions/programs would be facilitated through emails and SMSes.
Electronics Manufacturing – Target NET ZERO Imports
IT for Jobs - 1 Cr students from smaller towns & villages will be trained for IT sector jobs over 5 years. DeitY would be the nodal department for this scheme. BPOs would be set up in every north-eastern state to facilitate ICT enabled growth in these state· 3 lakh service delivery agents would be trained as part of skill development to run viable businesses delivering IT services.
Early Harvest Programmes- These programmes include the following aspects:
A programme management structure would be established for monitoring implementation. Key components of the management structure would consist of the Cabinet Committee on Economic Affairs (CCEA) for according approval to projects, a Monitoring Committee headed by the Prime Minister, a Digital India Advisory Group chaired by the Minister of Communications and IT, an Apex Committee chaired by the Cabinet Secretary and the Expenditure Finance Committee (EFC) / Committee on Non Plan Expenditure (CNE).
The government proposes to set up a Micro Units Development and Refinance Agency (MUDRA) Bank through a statutory enactment. This Bank would be responsible for regulating and refinancing all Micro-Finance Institutions (MFI) which are in the business of lending to micro/small business entities engaged in manufacturing, trading and services activities. The Bank would partner with state level/regional level co-ordinators to provide finance to Last Mile Financer of small/micro business enterprises.
Since the enactment for MUDRA is likely to take some time, it is proposed to initiate MUDRA as a unit of SIDBI to benefit from SIDBI’s initiatives and expertise.
The MUDRA Bank would primarily be responsible for –
1) Laying down policy guidelines for micro/small enterprise financing business
2) Registration of MFI entities
3) Regulation of MFI entities
4) Accreditation /rating of MFI
5) Laying down responsible financing practices to ward off indebtedness and ensure proper client protection principles and methods of recovery
6) Development of standardized set of covenants (agreements) governing last mile lending to micro/small enterprises
7) Promoting right technology solutions for the last mile
8) Formulating and running a Credit Guarantee scheme for providing guarantees to the loans which are being extended to micro enterprises
9) Creating a good architecture of Last Mile Credit Delivery to micro businesses under the scheme of Pradhan Mantri Mudra Yojana
A sum of Rs 20,000 crore would be allocated to the MUDRA Bank from the money available from shortfalls of Priority Sector Lending for creating a Refinance Fund to provide refinance to the Last Mile Financers. Another Rs 3,000 crore would be provided to the MUDRA Bank from the budget to create a Credit Guarantee corpus for guaranteeing loans being provided to the micro enterprises.
Products and Offerings: The primary product of MUDRA will be refinance for lending to micro businesses / units under the aegis of the Pradhan Mantri MUDRA Yojana. The initial products and schemes under this umbrella have already been created and the interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth / development and funding needs of the beneficiary micro unit / entrepreneur as also provide a reference point for the next phase of graduation / growth for the entrepreneur to aspire for:
- Shishu: covering loans upto Rs. 50,000/-
- Kishor: covering loans above Rs. 50,000/- and upto Rs. 5 lakh
- Tarun: covering loans above Rs. 5 lakh and upto Rs. 10 lakh
The products initially being launched are as under:
Credit Plus Approach:
MUDRA would also adopt a credit plus approach and take up interventions for development support across the entire spectrum of beneficiary segments. The highlights of such proposed interventions / initiatives are as under:
Other Proposed Offerings: Going forward, offerings as under are also envisaged:
Recent Developments (Jan,2016):
[Sources: PIB, inbministry, Telegraph India, PM Website, The Indian Express, The Economics Times]