Electronic Toll Collection Electronic Toll Collection - National ...

Electronic Toll Collection Electronic Toll Collection - National ... Electronic Toll Collection Electronic Toll Collection - National ...

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ETC – Apex Committee Report The SPV may also undertake investigations or detailed study for any of the above purposes. If necessary, the SPV may appoint an independent agency for the same. 5. Concept marketing – The SPV may market the ETC concept through various modes of communication in the interest of public. 6. Record management & Reporting – The SPV shall be required to maintain complete records of the entire ETC system, including the records relating to the above roles & responsibilities. All public documents should be made available on the ETC web-portal. The SPV will be covered under the RTI Act and at the same time it will have to produce an annual report to the MoRT&H on its state of affairs. 7. Maintain a Management Information System to monitor & evaluate ETC project performance and propose suitable policy amendments to the MoRT&H. 8. Hold strategic control, including lifecycle management (development, testing, integration, implementation, maintenance, operation) over ETC technology, software and all other components. Entire data collected or any information processed from any data in the ETC system will also be the under the complete control cum ownership of this SPV. 9. Any other activity, required to make ETC system achieve the primary objectives of convenience, transparency and cost saving, or as assigned to this SPV. The SPV may decide to outsource/ procure any of the above services, which will require the SPV to select the vendors and manage the contracts. Contract management shall primarily include monitoring service level agreements. 4.2 Service procurement At least for the initial phase of the ETC project, since it will take considerable time to develop in-house expertise, it has been assumed that certain expert services will be procured by the SPV from the market. These services could include Clearing house operations, Helpdesk operations, Tag distribution and the System development or integration. While the SPV will procure these services, it will create enough in-house capability and capacity to hold strategic control of the technical solutions deployed within the SPV. The procurement could be undertaken in the following three different ways: ► Managed Service Provider (MSP) – A single service provider would be providing all the services to the central ETC agency. 20 | P a g e September 2011

ETC – Apex Committee Report ► Separate expert agencies – Under this option, separate agencies are appointed in accordance with the skill sets required for each ETC component, like Clearing House, Distribution Agency and System Integrator. ► Hybrid services – The central ETC agency can adopt the hybrid service model, wherein certain skill sets are combined to enable hiring of not many vendors and at the same time avoiding monopolistic situation, as under MSP option. The following factors may be considered for deciding on the procurement arrangement for services: 1. Multiple Service Providers vs. Single Service Provider with contractual Monopoly – Multiple Service Providers will encourage healthy competition while selection of single service provider might lead to monopoly power to extract unfair benefits. 2. In house capability development vs. procurement – It may not possible/ difficult / too expensive to develop all the in technical solutions in-house. On the other hand dependence on external service providers for critical functions may lead to vendor lockin. 3. Project expansion – In case the plan is to extend the services of ETC project in other areas like parking charges collection, the diversity of skills needed could be high which supports buying of services. Considering the above with respect to ETC operations, Hybrid services model seems to be the most suitable for ETC implementation. Following two categories of service providers may be hired. ► Central ETC System Provider (CESP) – Scope of work for this vendor will include, a. Design, development, deployment and maintenance of Central ETC System application which has web access rights to Users, Manufacturers, Distributors, POS, Concessionaires, SPV and general public b. Processing and settling financial transactions (toll, tag purchase, recharge) c. Account support services, which basically comprises operating a call centre for any update or queries As there would be only one central system holding together the total ETC operation here will be only one such service provider at one point in time. However, there may be no contractual exclusivity. For this purpose, the contract should provide for termination clause and exit management clause in a fashion that will allow the SPV to seamlessly move to a new service provider without disrupting the operation. ► Distribution Agency/ Coordinator – This agency is responsible to coordinate between self-appointed/ nominated Manufacturers and Point Of Sale outlets to ensure that RFID tags are available at user’s convenience. There will be multiple such vendors at one point in time. 21 | P a g e September 2011

ETC – Apex Committee Report<br />

The SPV may also undertake investigations or detailed study for any of the above<br />

purposes. If necessary, the SPV may appoint an independent agency for the same.<br />

5. Concept marketing – The SPV may market the ETC concept through various modes of<br />

communication in the interest of public.<br />

6. Record management & Reporting – The SPV shall be required to maintain complete<br />

records of the entire ETC system, including the records relating to the above roles &<br />

responsibilities. All public documents should be made available on the ETC web-portal.<br />

The SPV will be covered under the RTI Act and at the same time it will have to produce<br />

an annual report to the MoRT&H on its state of affairs.<br />

7. Maintain a Management Information System to monitor & evaluate ETC project<br />

performance and propose suitable policy amendments to the MoRT&H.<br />

8. Hold strategic control, including lifecycle management (development, testing,<br />

integration, implementation, maintenance, operation) over ETC technology, software<br />

and all other components. Entire data collected or any information processed from any<br />

data in the ETC system will also be the under the complete control cum ownership of<br />

this SPV.<br />

9. Any other activity, required to make ETC system achieve the primary objectives of<br />

convenience, transparency and cost saving, or as assigned to this SPV.<br />

The SPV may decide to outsource/ procure any of the above services, which will require the<br />

SPV to select the vendors and manage the contracts. Contract management shall primarily<br />

include monitoring service level agreements.<br />

4.2 Service procurement<br />

At least for the initial phase of the ETC project, since it will take considerable time to develop<br />

in-house expertise, it has been assumed that certain expert services will be procured by the<br />

SPV from the market. These services could include Clearing house operations, Helpdesk<br />

operations, Tag distribution and the System development or integration. While the SPV will<br />

procure these services, it will create enough in-house capability and capacity to hold strategic<br />

control of the technical solutions deployed within the SPV. The procurement could be<br />

undertaken in the following three different ways:<br />

► Managed Service Provider (MSP) – A single service provider would be providing all the<br />

services to the central ETC agency.<br />

20 | P a g e September 2011

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