Pvt firms to use RAJiv to tap rural potential

Technological developments are on an upswing and so is the digital divide. At a time when various companies, ranging from telecom operators to insurance entities, are churning out services on the Web, the rural customer still travels to a distant brick-and-mortar store to make payments or collect information.

However, some private companies like ICICI Bank, HCL InfiNet (that will be marketing Nokia products), Naukri.com and Hutch have found an easy way out to bridge the digital gap.

These companies will now be expanding their reach to rural consumers in Andhra Pradesh through Rajiv Internet Village (RAJiv) that aims at delivery of government services through Internet, broadband connectivity in rural areas and computer literacy among the rural people.

The government plans to implement the RAJiv programme in 8,618 villages. The state government has awarded a part of the project to a consortium of Bharath Electronics Limited and Radiant Infosystems Pvt Ltd, and supported by IBM and BSNL. While this consortium will set up 5,550 RAJiv centres in the state, the remaining centres will be taken up by a consortium led by TIMES, a non-governmental organisation.

Speaking to Business Standard, Venu Myneni, president and chief executive officer of Radiant Systems, Inc, said, "Companies like Western Union, ICICI Bank, Hutch, HCL InfiNet have tied-up with us for RAJiv programme. This means that they will use our kiosks to transact their business."

This means that the people living in villages will now be able to avail themselves of loans from ICICI Bank, pay mobile bills to Hutch, collect information on job openings in the vicinity and even buy Nokia phones at such kiosks.

"There are around 20 other companies, including seeds and fertiliser companies, that are looking at expanding their reach through Internet as well as physically through our kiosks," Myneni said. This apart, there are some organisations that are looking at tying up with the consortium to provide weather information, etc, to farmers as well.

Myneni refused to divulge the exact monetary benefit that the RAJiv centres would accrue from the private parties for this purpose.

"In some cases, it will be a fixed percentage of the sales made by the company concerned through such kiosks," he added. This apart, companies will also be able to use such centres for advertising their products and services through point-of-purchase material, thus facilitating an additional revenue inlet for the centres.

The consortium will be setting up its first 100 centres by the end of this month in Chittoor, Kadapa, West Godavari and Karimnagar and plans to touch the 2,000-mark by March 2006. "All the 5,500 centres will become functional by the end of 2006," he added.

Apart from the above commercial services, the RAJiv programme will also enable users to make payment of electricity and telephone bills, and get copies of land records, birth certificate, etc.