DIPP in collaboration with World Bank-released the State Rankings for Ease of Doing Business 2017-18 on 10th July. As per the rankings Andhra Pradesh was First, Telangana was second and Haryana was Third.

Telangana and Andhra Pradesh both ranked same on the Ease of Doing Business (EoDB) rankings, as per the sources, who came out with a new calculation wherein both AP and Telangana share 98.30% and allege a calculation error on part of DIPP.

The evaluation is spread over 372 reform action points.

This year, the evaluation has two components:-

1. Implementation
2. Feedback from users (Feedback was taken on 78 action points)

The final score is a combination of the implementation score and feedback score. The DIPP had declared the feedback and evaluation methodology in August, 2017. With computer tools, one would expect that the calculations would be simple and accurate.

However, a closer look at the figures reveals that several mistakes were committed by the Jury while arriving at the final scores and thereby the rankings

For example, take the case of Telangana and Andhra Pradesh. For Telangana, out of 372 questions, 4 were found to be not applicable so the evaluation was on the basis of 368 questions. Telangana implemented all 368 questions and achieved 100% implementation score. On the 78 feedback questions, Telangana got 83.95% feedback score. Each of the 78 questions, 0.5 marks was given for implementation and depending upon the feedback, maximum of 0.5 marks for feedback. For example if out of 5 users from whom response is taken, 4 say that reforms is implemented, then the score on feedback would be ½ * (4/5) = ½ * 0.8 = 0.4.

For questions where no feedback was taken, one mark was awarded if reforms was implemented and zero, if reforms is not implemented.

Thus, in case of Telangana, since they implemented 368 reforms (290 without feedback and 78 with feedback) total marks due to implementation is 290*1 + 0.5*78 (Since in case of feedback question 0.5 marks is for implementation and 0.5 marks for feedback) i.e, 329. For feedback out of maximum 39 marks (78* 0.5) Telangana got 83.95 % or 32.741 (39*0.8395).

Thus, the total works out to 329+32.741 = 361.741. Therefore the final score would be 361.741/368 = 98.30%

Similarly for Andhra Pradesh, 3 questions are found to be not applicable. Thus AP was evaluated on the basis of 369 questions. AP implemented 368 questions and could not implement one and achieved 99.73 % implementation score. On the 78 feedback questions AP got 86.50% as feedback score. Thus, AP scored 290*1 +78*0.5 marks for implementation i.e., 329. For feedback it got 86.50% or 39*0.8650 = 33.735. Thus total score for AP works out to 329 + 33.735 or 362.735 which is 362.735/369 = 98.30 %.

Thus both AP and Telangana should have got 98.30% and thus jointly ranked as 1.

However, due to wrong calculation of score as 98.42% for AP and 98.33 % for Telangana, ranking was given as 1 for AP and 2 for Telangana.

Similarly, no. of mistakes are also reported in case of several other states.

For example, Jharkhand which should have been at number 3 is shown at number 4 and Madhya Pradesh which should have been at number 6 is shown at number 7.

It seems that several states have brought this to the notice of the DIPP and they are expecting that the calculation of final score and rankings will be rectified.
 
EODB 2017-18 Assessment (as declared by DIPP & World Bank on 10-07-2018)

Top 10 States

S. No.	State	Implementation Score	Feedback Score	Final Score
1.	Andhra Pradesh	99.73	86.5	98.42
2.	Telangana	100	83.95	98.33
3.	Haryana	99.73	82.90	98.07
4.	Jharkhand	100	81.67	97.99
5.	Gujarat	99.73	83.64	97.96
6.	Chhattisgarh	99.46	78.44	97.36
7.	Madhya Pradesh	99.46	79.73	97.31
8.	Karnataka	98.64	77.66	96.40
9.	Rajasthan	98.46	64.44	95.68
10.	West Bengal	99.46	53.69	94.70

 
EODB 2017-18 Calculation Sheet for Andhra Pradesh and Telangana

Detail	Telangana	Andhra Pradesh
Total reform points	372	372
Not applicable points	4 (58, 59, 60, 231)	3 (58, 59, 60)
Total applicable points	368	369
Non implemented points	0	1
Approved points	368	368
Implementation score	100%	99.73%
Implemented points ? non feedback	290	290
Implemented points – feedback	78	78
Implementation score ? Marks	= 290*1 + 78*0.5 = 290 + 39 = 329	= 290*1 + 78*0.5 = 290 + 39 = 329
Feedback score	83.95% = 39 * 0.8395 = 32.741	86.50% = 39 * 0.865 = 33.735
Total points (Implementation + Feedback)	= 329 + 32.741 = 361.741	= 329 + 33.735 = 362.735
Final score (rounded to 2 decimal places)	= 361.741/368 = 98.30%	= 362.735/369 = 98.30%

The Actual Rankings should have been as follows:

1.Andhra Pradesh : 98.30
1.Telangana : 98.30 (shown at 2)
3.Jharkand : 98.06 (shown at 4)
3.Haryana : 98.06
5.Gujarat : 98
6.Madhya Pradesh : 97.32(shown at 7)
7.Chattishgarh : 97.31