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Home > Business > PTI > Report

E-gov spend seen at Rs 15,000 cr in 5 yrs

April 12, 2004 14:26 IST

State governments will spend close to a staggering Rs 15,000 crore (Rs 150 billion) on computing their operations over the next five years, a Nasscom study has predicted.

The government accounted for 9 per cent of the total IT spend in India in 2002, which is estimated to go up to 15 per cent of the total IT spend in the next five years, the study said.

In 2003, the central government proposed a total outlay of Rs 2,550 crore (Rs 25.50 billion) for the national plan of e-governance. While Rs 1,485 crore (Rs 14.85 billion) had been allocated for the Centre, Rs 800 crore (Rs 8 billion) was earmarked for financial institutions and Rs 265 crore (Rs 2.65 billion) for state governments, Nasscom said.

According to Gartner estimates the Indian government has spent around $1 billion on IT in 2002. This includes the expenditure of the state and central governments on hardware, software, telecom equipment and services and IT.

Though e-governance is still in infancy, over 20 states and Union Territories already have an IT policy in place. In terms of basic computerisation, police departments, treasury, land records, irrigation, and justice are seen as having the maximum potential, Nasscom stated.

The launch of e-governance projects has resulted in an increase in the overall IT budget of state governments, sometimes by an order of almost 100 per cent.

In terms of states' progress in e-governance, Andhra Pradesh takes the lead with projects like e-Seva, CARD, VOICE, MPHS, AP Online One-Stop-Shop on the Internet, Saukkaryam, Online Transaction Processing.

In Bihar, the key e-governance project is sales tax administration management information while Chhattisgarh has Infotech Promotion Society, treasury office, e-linking among the projects aimed at infusing technology in administration.

Automatic vehicle tracking system, electronic clearance system, management information system for education are some of the e-governance projects of Delhi government.

Goa, Gujarat, Haryana, Himachal Pradesh, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu and north-eastern states have embarked on larger e-governance projects.

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