FY2018 Study on Business Opportunity of High-Quality
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FY2018 Study on business opportunity of High-quality Infrastructure to Overseas Feasibility Study of Common Mobility Card Business in Gujarat, India February, 2019 Ministry of Economy, Trade and Industry (METI) Entrustee: NEC Corporation Table of contents 1. Project overview 1-1. Background and objective 1-2. Target area of the study 1-3. Methodology of the study 1-4. Project structure 2. Results of the project 2-1. Local needs and issues towards Common Mobility Card expansion 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state 2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion 2-1-3. Survey for trends of local players which provide transportation IC card payment service 2-1-4. Survey for trends of introduction status for payment service besides transportation use 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI 2-2. Business feasibility 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues 2-2-2. Examination of issue and solution related to localization of proposed technology for making business model 2-2-3. Examination of strategic issues and countermeasures 2-2-4 Business model development and its elaboration 2-3. Implementation of reporting seminar 2-3-1. Reporting seminar in Gujarat Table of contents 1. Project overview 1-1. Background and objective 1-2. Target area of the study 1-3. Methodology of the study 1-4. Project structure 2. Results of the project 2-1. Local needs and issues towards Common Mobility Card expansion 2-1-1. Survey for transportation IC cards in Ahmedabad, Surat cities in Gujarat state 2-1-2. Survey for transportation IC cards in other states, Indian Railways (IR) and National High Speed Railway Corporation Limited (NHSRCL) which would be candidate for business expansion 2-1-3. Survey for trends of local players which provide transportation IC card payment service 2-1-4. Survey for trends of introduction status for payment service besides transportation use 2-1-5. Examination on potential utilization of big data accumulated in transportation common card business using AI 2-2. Business feasibility 2-2-1. Examination of proposed technology for Common Mobility Card, reflecting local needs and issues 2-2-2. Examination of issue and solution related to localization of proposed technology for making business model 2-2-3. Examination of strategic issues and countermeasures 2-2-4 Business model development and its elaboration 2-3. Implementation of reporting seminar 2-3-1. Reporting seminar in Gujarat 1-1. Background and objective ▌ In India, the concept of “National Common Mobility Card” exists as the country promotes cashless, and smart city. However, each city is implementing different technologies due to lack of national standard. ▌ As an ICT solution provider for 2 major cities in Gujarat (Ahmedabad and Surat), NEC conducted this Feasibility Study of Common Mobility Card Business in Gujarat, India. Background and objective (Excerpted and translated from NEC’s specification sheet): In Republic of India, soon after the launch of the present government of Narendra Modi in May, 2014, “Digital India Program” has been formulated as national policy. In this program, the government aim to promote the digitalization of financial deals and cashless system. As a fact, the government has suddenly abolished high-value banknote to eliminate the corruption in November, 2016 for example, to realize the cashless society establishment with diffusion of Fin Tech. According to the above national policy, Ministry of Housings and Urban Affairs (MoHUA) as main role has formulated “Smart Cities Mission Statement & Guidelines” in June, 2015. This, as one of the most important policy of the government, aims to transform 100 target cities to Smart City by utilizing ICT (Pan City Development). As of now, around 90 cities have been selected and 11 of them listed “Common Card” as the expected smart solution to be introduced (Round1: 7 cities, Fast Track: 1 city, Round2: 3 cities). Among them, Ahmedabad and Surat cities have been selected as smart city which will be the main target site of this feasibility study already implemented the contactless smart card based on RuPay (Rupee Payment) specification formulated by National Payments Corporation of India (NPCI). In Ahmedabad, his RuPay based smart card is already available for transportation use like Bus/BRT, and the integration with Metro Express for Gandhinagar - Ahmedabad (MEGA) is being reviewed. Despite the situation with such grand idea, NPCI and MoHUA who have been formulating “National Common Mobility Card - Submission of Minimum Standards” (inaugurated in 2009, NCMC) don’t establish the practical and unified technical specification for transportation use in the card data format yet even after 8-9 years passed after the policy issued. As a result, each state, city government and transport operator is implementing smart card system individually, which consumes time and cost than required. Furthermore, by introducing transport smart card with several specifications, it becomes difficult to realize seamless transfer among multiple transportation modes (Interoperability). On the other hand, Feasibility Study for Infrastructure Provision in Smart City Development in Gujarat state conducted under Ministry of Economics, Technologies and Industries in 2017 implied the possibility to utilize Japanese technology for transport smart card in the final report. 4 1-1. Background and objective National Common Mobility Card (NCMC) ▌ National Common Mobility Card (NCMC) is the concept Government of India is driving forward. ▌ NCMC is a contactless payment card which enables nation-wide interoperability. Major features of NCMC: Card-based payment Applicable both for online payment (contact & contactless), and offline payment (contactless) Capable to have stored value for offline transaction Available not only for bus, metro, parking, and toll gates with contactless payment function, but also for ATM, retail stores, and e-commerce. Issuer of NCMC has to be a member of Reserve Bank of India NCMC can be issued as debit card, prepaid card, and credit card. Can host various services such as commuter pass and seasonal ticket Card Issuing Acquiring Bank Toll gate Metro Bank Retail store Card usage Transaction request P NCMC Bus・BRT Parking Transaction data from Acquiring Bank NPCI National Automated Clearing House (NACH) Settlement between Card Issuing Bank & Acquiring Bank 5 1-2. Target area of the study ▌ This study sets Gujarat State (Ahmedabad and Surat) as a major focus, as NEC have implemented NCMC compliant cards for both cities. Discussion among the central government agencies, other states, and related stakeholders will also be the scope of this study. Major target area of the study:Gujarat State Janmitra Card *1 Gandhinagar Ahmedabad Rajkot Vadodara Surat Gujarat State Money Target areas of study Surat Card outside Gujarat State *2 Discussion among the central government High Speed Railway agencies. Implementation status Population: 60.38M (9th largest in India, in 2011) of smart cards in other th th • Ahmedabad (5.6M 5 largest), Surat (4.46M 8 largest) state. In 2028, its population will reach 71.2M according to 2011 Census of India Major public transportations: Trend of related • Intercity: Western Railway (Central government operation), stakeholders such as Intercity bus (State operation) banks and IT solution • Ahmedabad: Bus / BRT / Metro (Under Construction) providers. Surat: Bus / BRT / Metro (Planning) / High Mobility Corridor (Planning) • Cashless trend other • Rajkot: Bus / BRT • Vadodara: Bus / BRT (Planning) than smart cards. High Speed Railway is planned to start its operation in 2023 Manufacturing industry sector in Gujarat makes up 40.6% of 2019’s national GDP Current Prime Minister, Narendra Modi served as the state’s Chief Minister from 2001 to 2014 *1 Source: MoHUA SMARTNET「COMMON CARD PAYMENT SYSTEM A step towards green travel」 6 *2 Source: Surat Municipal Corporation Web Page Domestic On-site Outsourcing 1-3. Methodology of the study activities activities activities ▌ Reflecting each layer’s (Central / State / City / Private) opinions and activities, NEC made a proposal to the key stakeholders in Gujarat. Study local needs and issues towards Business model development Final report Common Mobility Card expansion (Oct - Jan) (Jan - Feb) (Aug - Dec) 9/2~9/15 9/25~10/12 10/28~11/3 12/9~12/22 1/20~2/3 Wrap upfindings / On Wrap Considering strategic issues / Biz modelelaboration th Desk research / On / research Desk Wrap up findings / 1st visit 2nd visit 3rd visit proposedExamine 4th visit 5 visit Final Reporting on-site survey on-site survey on-site survey on-site survey Seminar (India) Central Govt. City Govt. GJ State Govt. GJ State Govt. GJ State Govt. Hearing survey on Hearing survey on Collect feedbacks Brief direction of City Govt. NCMC discussion Ahmedabad’s and for the proposed the proposal and Make a proposal at status as well as Surat’s NCMC technology, and officially invite for Examine proposedtechnology the reporting event implementation implementation discuss business the Final Reporting - tech & Business model Business & tech in the presence of site survey preparation survey site schedule for key - status, and feasibility. Seminar. site survey preparation