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In the nineties of the last century United Nations ratings for the different regions of the world recorded Kerala as an economic miracle. In several social parameters the State was at par with the developed West. This unbelievable feat was achieved in spite of a lesser per capita income and lack of industrial back up. The great economist –Amarthya Sen attributed this achievement to the spread of education to a wider level in Kerala society. A section of educated among Keralites utilised the services of information technology for further economic development. But the vast majority did not take to this technology for consolidating and furthering the achievements on the social front. A digital divide developed in the State as elsewhere between a minority that could use information technology for development and the majority that could not do so. Planners in the socio-economic front sooner realised that the consolidation of socio economic development in Kerala was possible only by removing the digital divide in the society. The vast majority of the populace have to be equipped with the tools of Information and Communication Technology to achieve tangible progress. The less privileged sections had to be empowered with ICT. Those at the helms in the three-tier panchayat system in the State realized the importance of ICT for socio-economic development and they came forward with plan proposals and programmes to bring information technology to common households. Meanwhile Government constituted the State Information Technology Mission for achieving transparency and speed in administration so as to make it more responsive to the needs of the people and for grass roots level application of information technology as part of social engineering for development.