Title : Delhi Excise

Description

Delhi Excise

Client Name : Department of Excise, GNCTD

Client Type : Case Studies

Start Date : 15th February, 2014

End Date : 14th March, 2014

Description

Excise Department is the major revenue-earning department. Apart from fulfilling its primary responsibility of revenue collection, the department controls and regulates the liquor intoxicants and narcotics trade and discharges the responsibility of making available the same in safe quality to the consumers. For regulation and monitoring the functions, the statutory powers for discharging the responsibilities are taken from Delhi Excise Act, 2009 and Medicinal & Toilet Preparation Act, 1955 and rules made there under. The department had a challenging objective to automate the alcohol supply chain management system in Delhi in real time mode and to increase the revenue collection for the department. Also, interfaces to all the stakeholders of department shall be automated to expedite the service delivery to citizen & business. Excise Supply Chain Information Management System (ESCIMS) project was envisaged to address aforementioned key concerns. This case study is an attempt to present the success story of the department in a manner where key learning/s can be easily identified and emulated.
 
Client Name : Department of Excise, GNCTD

Client Type : Case Studies
 
 
Project Abstract

Excise Department is the major revenue-earning department. Apart from fulfilling its primary responsibility of revenue collection, the department controls and regulates the liquor intoxicants and narcotics trade and discharges the responsibility of making available the same in safe quality to the consumers. For regulation and monitoring the functions, the statutory powers for discharging the responsibilities are taken from Delhi Excise Act, 2009 and Medicinal & Toilet Preparation Act, 1955 and rules made there under. The department had a challenging objective to automate the alcohol supply chain management system in Delhi in real time mode and to increase the revenue collection for the department. Also, interfaces to all the stakeholders of department shall be automated to expedite the service delivery to citizen & business. Excise Supply Chain Information Management System (ESCIMS) project was envisaged to address aforementioned key concerns. This case study is an attempt to present the success story of the department in a manner where key learning/s can be easily identified and emulated.

Project Description
 
Background
 
The ‘Excise Supply Chain Information Management System for Liquor Sale in Delhi’, has been initiated by the Excise Department with the objective to make the system more transparent, efficient, effective and accountable with the help of Information & Communication Technology (ICT).

 The project covers the Excise services at Department and Corporations, Bonded Warehouses, Vends and Distilleries. It includes the interaction of Central and State with Export Permit and Import Licenses. The Proposed Solution is an internet based software application that will act as the single point of communication for Department users, all other stakeholders and Citizen to view the relevant information of various functionalities based on user permissions.
 
Objectives
 
The Commissionerate is committed towards consumer convenience and revenue mobilization through Computerization. The Excise, Entertainment and Luxury Tax Commissionerate of NCT of Delhi have two major objectives:

 
a. To enforce and regulate the liquor trade in Delhi without promoting it.

b. To mobilize revenue generation under the multiple heads of taxation that it administers. The department has realized that the increasing workload under the manual system affects efficiency and also hampers department's revenue collection capacity. Hence the remedy lies in extremely smooth operating infrastructures and effective communication systems. This requires an integrated information technology network with an inbuilt facility to collect revenue electronically from liquor vending, corporations, hotels, cinemas, liquor shops and it will be connected at one end with the Commissionerate and other with participatory banks.
 
Scope of Project

The scope of the project is to Design, Develop, Test, Deploy, Operate and Maintain the proposed Supply Chain Information Management System and the Department’s functional areas using serialized 2D Barcode in Design Build Own Operate Model (DBOOT). The Operations and Maintenance for 7 yrs after Go-Live.
 
The Implementing agency shall act as System Integrator of all the Department Functional Areas as detailed below; integrated with Excise Supply Chain Information Management System as a component to the department portal.
 
The detailed the broad areas of scope of work of the Implementing Agency (IA) is enclosed in the Case study.

 Stakeholders

One of the most challenging aspects of the ESCIMS is the diversity and number of the stakeholders:
 
Project Sponsor / Excise Department, GNCTD,

 ·         DTTDC - Delhi Tourism and Transportation Development Corporation

·         DSIIDC - Delhi State Industrial & Infrastructure Development Corporation

·         DSCSC - Delhi State Civil Supplies Corporation

·         DCCWSL - Delhi Consumer Cooperative Wholesale Store Limited

·         Project Monitoring Unit (PMU)

·         Implementing Agency

·         Other stakeholders

o   Distilleries

o   Bonded Warehouses

o   Private Vends/ Vends

o   Hotels

o   Clubs

o   Restaurant

 
Benefits and Beneficiaries
 
The major benefits expected from the system would be:

 For Citizens

·         Automation of Issuance of Transport Permits

·         Automation of import permits

·         Automation of No Objection Certificates
 

For Government:

·         Reduction in smuggling and brand pushing of liquor which help in better revenue mobilization.

·         Automation of the issue of Transport Permits, import permits, No Objection Certificates will obviate the necessity of people coming to department.

·         Generation of timely, intelligent reports and comparisons will help managerial control, inventory management, improve efficiency and enable revenue record reconciliation on daily basis. Also bringing departments float to zero simultaneously. This will also help flattening of tax cycle.

·         Ease of tax rates or regulatory changes being put in force immediately and also providing transparency to department and its business with it's clients.

·         Control data e.g. occupancy rates for hotels, ordering patterns for corporation and bookings for entertainment can be monitored effectively.

 
For Corporation:

·         The corporations dealing with liquor will see savings in cost of transfer of funds, reduction of floats, better stock management improving revenues and less time spent in chasing paper.

·         The Corporation shops will see savings in space and reduction of overstocking/stock out situations. They will be able to serve customers with speed and with brand of choice along with accuracy in billing and payment resulting in enhanced satisfaction. Similar benefits will also accrue to bonded warehouses.

 
For Hotels and Entertainment entities

·         As regards hotels and entertainment entities with respect to Luxury Tax and Entertainment Tax the system in course of time will build value for them primarily by increasing convenience and reducing cost of money transfer, possibly doing away with manual filing of periodic returns and effective reconciliation, thus reducing accounting load.
 
Implementation Strategy
 
In ESCIMS project, Open group recommended framework (also known as TOGAF – The Open Group Architecture Framework) has been adopted in order to

a. To have Open Architecture

b. To ensure a robust system design without any vendor and technology lock-in as

c. To design the reference architecture across the country

d. To envisage that reference architecture may be adopted with great flexibility to accommodate the variations without bypassing the well-established framework
 
Challenges during implementation phase
 
The few of key challenges of during the project implementation phase are highlighted below:
 
·         Diverse Stakeholders with varying Skill & Knowledge Levels

·         Real time Transition to new System ESCIMS (with no effect on the current business operations)

·         Skill level of the stakeholders is NOT in PMU's/SI's control as majority of stakeholders were outsiders with No Education and also Lowest Skill Level

·         Yearly changes in policies and regulations of Excise Department such as Issuance of the new licence,          change in the amount of taxes and others
 
Key Lessons/Achievements
 
·         Innovative Model Of 2d Barcodes
 ·         Revenue reconciliation
 ·         ESCIMS' dashboards
·         Transparency
 ·         Improvement in Purchase Management Process
·         Reduction in the Manual Paper Work
·         Automation Leading to Simplification
·         Adaption to Dynamic Changes
 ·         Implementation of electronic Service Level Agreement (eSLA)
·         Capacity Building and Change Management

 The initiative brought-in great amount of changes in the way processes were being implemented. The initiative resulted in some sub-initiatives which had far reaching impact on the government and created a role model on how the entire supply chain through ESCIMS has enhanced better services to citizens and bring in greater efficiency in citizen services delivery.
 
ESCIMS Business Statistics (15Feb’13 – 31Mar’14):

•       Rs. 3583cr. of business has taken place [Rs. 466cr.(15Feb’13-31 Mar’13)  + Rs.3117 cr. (1April’13  till    31Mar’14)]

•       38.14 thousand Import Permits and 11.1 Lac Transport Permits have been issued

•       2.98 cr. cases and  61.28 cr. Bottles have been transacted

Status as on date

ESCIMS is in operation since 15th February 2013, initially with pilot phase and then subsequent roll out of modules. It has been declared Final Go-Live by Excise Department on 1st December 2013 and is running successfully across the entire supply chain.
 
Recently, Shri. Najeeb Jung, Lt. Governor of Delhi had shared his views about ESCIMS- “While reviewing the functioning of the Excise Department, Jung instructed the Excise Commissioner to ensure 100% implementation of the Excise Supply Chain Information Management System (ESCIMS) at all levels and take strict action against tax evaders”.
 
Replication – ESCIMS can be considered as a replicable model for other state’s Excise Entertainment and Tax departments
 
References
 
[1] http://delhi.gov.in/wps/wcm/connect/doit_excise/Excise/Home/Achievements

[2]  Case Study- Delhi Excise pdf 706.67 kb

 

 

Published On : 5th January, 2015