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KSPH&IDCL has been awarded CIDC Vishwakarma Award 2017 for Achivement Award for Best Professionally Managed Company in Category III - Turnover INR 100-500 Crores.
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KSPH&IDCL has been awarded CIDC Vishwakarma Award 2017 for Achivement Award for Best Construction Project for Fast Track Construction Technology for Mysore Project.
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KSPH&IDCL has been awarded the 4th CIDC Vishwakarma Award 2012 under the category 'Achievement for Best Project' for 'Police Model Flats built in just 15 days' using EPS based pre-fab fast track construction technology.
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KSPH&IDCL is certified to ISO 9001-2008 for its Quality Management System.
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      Highlights                     
    Transformation in KSPH&IDCL Highlights



  ABOUT US: Karnataka State Police Housing and Infrastructure Development Corporation Limited (KSPH&IDCL) is a fully owned undertaking of the State Government of Karnataka, headquartered in Bangalore, India. Set up in 1985, the Company was mandated to build residential and non-residential buildings for the Police, Fire and other auxiliary services in the State. Project costs and the administrative expenses were being met by the Government and the Company had no income generating activity of its own. In the year 2006-07, KSPH&IDCL has undergone a transformation. The process of transformation began in 2001 and has taken six years to complete.


  THE TRANSFORMATION: KSPH&IDCL's Web based Project Management System (WBPMS) is one of the transformation initiatives started in 2001, along with computerization of all its activities in a phased manner. The other transformation initiatives include transparency, accountability, stakeholder involvement, Right to Information, professional approach to management, etc. KSPH&IDCL's transformation is a continuous process of self-improvement, imbibing all principles of good governance including e-governance, with an objective to achieve world-class standards in all its endeavours. The transformation promotes total transparency in all its operations, and makes possible cost effective and timely delivery of quality buildings constructed innovatively to enhance the functioning of the essential public services like the Police, Fire forces, Home Guards and Prisons. The transformation initiative helped KSPH&IDCL to come to grips with the myriad problems associated with increased workload and project execution in remote locations in Karnataka. 

The transformation helps tackle the emerging issues in executing projects efficiently and in a better manner than ever before. From a computer located anywhere, the status of the projects can now be reviewed 24X7 by any of the stakeholders and this helps to initiate appropriate and timely intervention strategies that are necessary to improve project implementation. The system enables KSPH&IDCL to cope with the challenges of distance, time pressures, inadequate resources, lack of knowledge and skills and facilitates collaborative workflow, information sharing and good governance. When non-compliances occur or are noticed, alerts are generated either automatically or manually, and remedial measures can then be initiated and accountability fixed. 


 BETTER SYSTEM THAN RTI: Though the recently promulgated Right to Information Act (RTI) is very progressive, procedural requirements are required to be satisfied before the information is made available. All such bureaucratic procedures are removed with the implementation of WBPMS and any information pertaining to any project at any stage is just a mouse-click away for any interested party. Equally importantly, the WBPMS has an inbuilt mechanism to receive and register feedback and complaints. A regularly updated Complaints Register helps the public/customer to find the status of their complaint in real-time. In many instances, this also helps the Project-in-Charge to initiate proper, timely corrective action. 


 THE REJUVENATOR: This is a remarkable transformation for an organization that was slated to be closed as per the recommendations of a State Legislative committee on Administrative Reforms citing redundancy of construction agencies in the Government. In its report submitted by Sh. Harnahalli Ramaswami, a legislative committee set up by Government of Karnataka on Administrative Reforms recommended closure of KSPH&IDCL on account of multiplicity of agencies in the Government engaged in construction activities. To justify its establishment, continued existence and provide its personnel job security, KSPH&IDCL redoubled its efforts to transform itself and to build innovatively for better police-community relations by adhering to professionalism, total transparency and right to information. 


 THE CHALLENGES: This critical period coincided with the boom in the nation's economy and in the construction activities. But the competition was fierce and KSPH&IDCL realized that it had to provide a qualitative shift in the kind of services that were on the offer. Determination to embrace emerging technologies, implementation of top notch quality assurance measures, continuous monitoring of the progress of the project, and assurance of implementing a quick and prompt complaint redressal mechanism were essential components to make a difference and add value to the service. The task was daunting because the Company had to make do with personnel of its own and those received on deputation from other departments, who had little or no background in Information Technology. They were technically competent, but not technology savvy. Massive motivational campaigns and technical training sessions had to be planned and executed. KSPH&IDCL rose to the occasion by deploying a web based Project Management System developed in-house and proved itself superior to the competition. 


 THE RESULT: Government programs are generally beset with delays, cost escalations and lack of accountability. The web-enabled Project Management System of KSPH&IDCL brings in total transparency in public spending, facilitating stakeholder involvement, team effort and information sharing. Many of the best practices advocated by professional bodies like the Project Management Institute, International Standards Organization and Institute of Chartered Accountants of India are integrated in the WBPMS developed by KSPH&IDCL. By adopting this tool for better planning, control and executing its projects with decreasing time and cost overruns, KSPH&IDCL has demonstrated that its transformation model can create value and wealth for the Government. 


 RECOGNITIONS GALORE: On World Habitat Day (3 Oct 2006), the Government of India selected KSPH&IDCL to receive the First Prize and Best Practices Award in recognition of the pioneering work done in the field of Quality Management and e-governance. Other awards conferred during the last year include Golden Peacock Awards for Corporate Social Responsibility, Eco Innovation and Innovative Management and GOLD rating under LEED certification process from the US Green Building Council.

The transformation has helped KSPH&IDCL win the trust and confidence of all its customers and to become a self-reliant professionally run company working on commercial lines in a competitive environ from its earlier status of being dependent on Government funds.
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 SOME INDICATORS OF MEASUREMENT OF TRANSFORMATION:
Indicators During 16 years prior to transformation During 5 years post-transformation
Average work done /year INR74.02 M INR875.03 M 
Average administrative expenses / year INR9.67 M  INR74.61 M 
Average annual income INR1.40 M INR33.79 M 
Administrative expenses as % of work done 13.06  8.52

M = million; INR = Indian Rupee

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ACHIEVEMENTS

The single most important achievement of the WBPMS is that it aims to provide accountability for public money invested in Government projects. Any member of the public can visit the website, open the WBPMS and check how well the money is being spent. With a complaint mechanism built into the tool, the WBPMS proves better than the Right to Information Act. The WBPMS has enabled KSPH&IDCL to imbibe professionalism while executing publicly funded projects, from conception to completion. Consciousness about several important focus areas of project management has been brought home in a dramatic manner by the WBPMS and this has facilitated a gradual assimilation in KSPH&IDCL of the best practices in project management prevalent across the world. 

e-procurement process was first introduced in KSPH&IDCL directly as a result of the WBPMS. At that time, the Karnataka Transparency in Public Procurement Act, 2000, and the Right to Information Act, 2001, were legislated. These Acts imposed a legal requirement to bring in greater transparency and accountability in the functioning of the Government and all its agencies, which required several fundamental changes in the functioning, systems, processes and attitudes of KSPH&IDCL and all its stakeholders. The requirements of the two legislations, when applied to the hitherto employed manual tendering process at KSPH&IDCL, made the procurement process very cumbersome. 

When KSPH&IDCL had to find a suitable partner for the hosting services, it opted to identify the agency through e-tendering. This initial foray into a totally transparent procurement process of e-tendering with reverse auction saw incredible savings to the Corporation. The hosting service provider was selected from among seven topnotch hosting service providers in the country. The e-tendering witnessed a fierce competitive bidding process in which the prices fell from INR3.2 M to INR0.54 M. The phenomenal savings achieved in the process prompted introduction of e-tendering process with reverse auction for award of all Government contracts in KSPH&IDCL thenceforth. Initially there was resistance from vested interests, but the savings to the exchequer made e-procurement a regular procurement process within KSPH&IDCL. News about the credibility of the e-tendering process spread and soon other departments approached KSPH&IDCL to extend the service to them. KSPH&IDCL started offering e-tendering as a separate service to other Government departments and agencies, which helped KSPH&IDCL earn about INR10 M in revenues during 2006-2007. Thus, Web based PMS showed that a very transparent procurement process can be managed with no legal hassles and risks, and this can prevent cartel formation among contractors. Not only did it show the status of all the projects, but it also helped to focus on processes that effected huge cost savings and highlighted time delays. The WBPMS prompted prioritizing of problem areas and focusing of attention on many other critical areas such as quality aspects. It has prompted supervisors to concentrate on potential problem areas with the maximum damage potential to be attended to on priority.
TARGET POPULATION

The target groups served by the initiative are the Corporation and its personnel, its clients, the contractors short-listed for executing the work, and the public, who in this case happen to be the real financial stakeholders. As soon as a project is accepted, a product realization plan is prepared taking into account all necessary Quality System Procedures, customer specifications, design considerations, statutory requirements and other local conditions. An estimate is prepared and sanctioned as per in-house procedures; human resource and budgetary allocations are made for successful implementation of the project. Based on this, the designated KSPH&IDCL employee entrusted with the execution of the project proceeds to register the project on WBPMS; all project initiation steps up to identification of land and project executing agency are published on the WBPMS. During the tendering phase, all intending bidders are required to comply with the conditions of tendering which include registration and participation in e-tendering mode. The conditions are framed in such a manner as to prevent ganging up or forming a cartel, and care is taken to ensure that the system is fair to all concerned. The bidders have an option not to participate in the reverse auction, during which the desirous participants try to better other competing offers. But, when a participating contractor finds that the contract is likely to slip out of his hand, the reverse auction provides the opportunity to get back into reckoning with a revised offer. This ensures that the Corporation benefits by obtaining the best prices and the whole exercise is carried out in the most transparent manner in real-time, which removes any possibility of adoption of any unethical means to win favors and the contract. 

Once the successful executing agency is identified, and the work order is awarded as per the contract conditions, the agency official is required to formulate the detailed project implementation program, the Quality Plan, in consultation with the site engineers (Project Managers) of KSPH&IDCL and then the project plan is published on the web. Close supervision of the project implementation by the sub-divisional and divisional supervisors, all the concerned head office personnel, and the contracted agency is made possible through WBPMS. For the Corporation, this ensures a strict control on time and cost overruns, while for the client it provides real-time updates and assurance of a satisfactory product-in-the-making.

Stipulations regarding the maximum number of days for settlement of bills, and the duration of every stage of running and final bills raised by the contractor, together with the provision to view the status of every bill through WBPMS, ensure total transparency. 

Public can view the project status and fund deployment at their own convenience, register complaints, view its status, and provide feedback and suggestions for improvement. This provides for the most important of all stake holders, the public, the joy of participatory decision making and the confidence that finances and project implementation are in safe hands.
THE STAKEHOLDERS

KSPH&IDCL has identified the following stakeholders and their chief concerns: The Government, the de facto owner of the Corporation, is concerned about budgetary utilization and cost overrun of projects entrusted. The client departments are concerned about the product quality and its timely delivery. End users of the buildings are concerned about how well the construction meets their requirements. If the project happens to be a work area, the user department is concerned about the work place conveniences provided. If the project involves housing, the end user's family is concerned about how well it would meet the family's requirement. The public is concerned about how public funds are utilized. The contractors are concerned about transparency in award of contracts and immediate payment of their bills. 

THE OBJECTIVES 

The goal of the transformation is to satisfy as many of these concerns as possible. In this direction, KSPH&IDCL has designed the WBPMS and computerization of its activities, and the integration of its activities in WBPMS to deliver satisfactory resolution of the concerns of its stakeholders. The goal of the transformation is to be able to show measurable improvements capable of independent evaluation. Financial institutions desire proper fund utilization; remote monitoring of project progress and cost / sq ft of construction data available in the WBPMS meets the requirement. e-tendering, e-billing and ability for remote monitoring of status of bill satisfies the Contractors' needs. KSPH&IDCL employees are concerned about their work environment the betterment of which increases their productivity; this is measured by productivity/employee. Auditors are concerned about traceability, fund flow details and data security; e-billing capabilities, accounting and WBPMS integration, job progress monitoring, and log sheet meet their requirements. Password protection, firewalls, backup facility, and server farms allay their security concerns. Process integrity, a constant concern of management, is assured by the internal and surveillance audits carried out as part of ISO 9001 requirements, which has incorporated Project Management features of ISO 10006. Environmental concerns are being addressed by planning of implementation of ISO 14001 during 2007. Information Security Management in line with BS 7799 will be initiated soon after.
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OBSTACLES 

Availability of reliable data and validated information at one source has been one of the main obstacles. Awareness regarding the number of projects to be handled and the sequence of activities to be undertaken was lacking among officers of the Corporation. Slow pace of technology absorption has been the other biggest handicap, so far. Connectivity issues, capacity building of staff, and excessive workload at all levels have also contributed in no small measure for the slow growth of Project Management skills in the organization. The level of attrition of employees has been very high, especially among the brighter employees; being a Government concern, recruitment is dictated by many social equity considerations other than merit. These obstacles were sought to be dealt with by organizing capacity building programmes repeatedly. Centralised data updation was undertaken to overcome local connectivity problems. Now, a Wide Area Network is being put in place, so that Project Managers can upload data from their workplaces. Since payment authorizations are dependent on up-to-date data updation, this has helped speed up the transformation process. Participation of all contractors in WBPMS is ensured by making suitable insertions in the contract clauses. More capacity building programs and capability maturity measurement and improvement modules need to be integrated. Context sensitive online Help feature also needs to be included. Local language capability is an important feature and requirement, which is yet to be addressed.
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THE ORIGINS OF TRANSFORMATION


Extra fund allotments made from State and Central Governments for modernization of Police, Prison and Fire Protection called for improved efficiency. To improve the efficiency of KSPH&IDCL and to overcome the threat of closure due to redundancy, the transformation was conceived after the Chairman and Managing Director took charge in July 2001. With the help and recommendations of experts in the field of IT, the scheme details for the Project Monitoring System were finalized. A tendering process was initiated and from amongst 30- odd competitors, the system integrator (M/s Condor Labs) and the developer (Microsoft certified partner M/s Cal-info) were selected for the implementation of the system, as these two contenders emerged as the lowest bidders. The first Beta version was tested on 19 January 2002. The project was formally commissioned in March 2002. After closure of M/s Condor Labs, M/s Bharat Sanchar Nigam Limited, a Government of India concern, won a keenly contested e-tendering-cum-reverse auction process for the co-location contract which was conducted by Wipro's 01 Markets Division. Microsoft published a case study of the project in February 2003 and this gave an impetus to continue with further development and enhancement in the application software. In 2005, integration of PMS with Tally accounting package was planned and the services of M/s Tally Solutions were contracted to do this job along with M/s Cal info. The board of directors and the Government of Karnataka gave full support to the endeavours right through the transformation.
THE FORCE BEHIND 

Mr. R SRI KUMAR, CMD, KSPH&IDCL, conceived this initiative to transform KSPH&IDCL. The board of directors approved the Transformation Initiative on 30 August 2001 with an authorized outlay of INR4.5 M. To start with, all activities had to be computerized and advice from Consultant Mr Prahalada Rao was taken. Through competitive bidding system, M/s Condor Infotech was selected as integrator and hosting service provider and M/s Cal-info as application developers. Later, Bharat Sanchar Nigam Ltd (BSNL) provided co-hosting services. All who come to know about the details of the WBPMS want the system to be implemented for all public funded projects as it fulfills their aspirations of transparency, etc. Certain vested interests opposing total transparency are critical of the initiative. Some reservations have been expressed about the high cost of implementation in view of license fees required for using proprietary software. The client departments by showing a strong preference for getting their building works executed by KSPH&IDCL as against other similar agencies, enthused KSPH&IDCL employees to do better. Other service providers like WIPRO's 01 markets division, Matexnet, etc helped in the e-tendering activities. State Government's Rural development and Panchayati Raj department, Chamarajanagar District Administration have reposed confidence in KSPH&IDCL by utilizing its services of e-tendering and WBPMS in addition to construction activities. State and Central Government Departments allotted new contracts to KSPH&IDCL, with greater confidence about its ability to track project progress and ensure timely completion at best prices.
MILESTONES

The Karnataka Transparency in Public Procurement Act and the Right to Information Act were promulgated during July 2002. In June 2002, a legislative committee on Administrative Reforms recommended winding up of this Company on grounds of redundancy. Amidst such tumultuous conditions, Mr. R Sri Kumar joined as CMD in July 2001. To avert closure, a Transformation Initiative was formulated and Board approval was obtained on 30 August 2001 to implement a computerisation plan with the help of Mr. KV Prahalada Rao as an external technical consultant. The Board initially authorized a budget of INR4.5 M from internal accruals and later realizing the potential, progressively increased the allocation to INR30 M. The Web Based Project Management System went live with the launch of a portal www.ksphc.org on March 15, 2002 when 136 projects could be monitored from desktops from any where. Currently, the WBPMS encompasses over 2000 project sites. The initiative received a set back when the System Integrator and Hosting Service Provider decided to close shop in January 2003. However, this set back required that a new Hosting Service Provider be identified, for which the Corporation opted for e-tendering and this helped usher in e-procurement. From March 2003 e-tendering, a totally transparent mode of award of Government contracts, became a regular feature. After ISO certification in June 2005, KSPH&IDCL is offering both WBPMS and e-tendering as paid services to other clients.
SHORTCOMING

The WBPMS is a Transformation Initiative that is driven by champions and helped by continuity of the change agents. Since it promises good governance to the common man, it is necessary to make it sustainable. At this crucial last stage of its evolution, strategic interventions and reinforcements are needed not for its expansion to the larger societal arena, but for assured sustenance in the crucible of its evolution. In the immediate surroundings of the innovating organization, all the stakeholders are aware of the need for such a change initiative in society. The personnel willingly participate in supporting the transformation, despite having to grapple with the intense pace of technology changes and the handicaps of skills, capacities and abilities to absorb technologies. However, freezing of this change will require periodical reinforcements and intervention strategies. The initiative will gain momentum with 'independent evaluation and readjustment' and scale greater heights of achievements. In this era of Information, Knowledge Management, and emerging opportunities, this change process can and should succeed with strategies that promise more rewards for adherence and compliance. In any conflict between change and status quo, the result is the same - synthesis of ideas. Resulting paradigm shift will then start a new conflict with other emerging threats while consolidation of the presently acquired gains takes the transformation beyond the point of no return. The Corporation proposes to develop Version II of WBPMS based on open source codes, to free it of dependence on proprietary software and make it cheaper

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