The correct answer is Option 3: e-governance.

MCA-21 (Ministry of Corporate Affairs 21st Century) is a major initiative taken by the Government of India to bring about digital transformation and improve governance in the corporate sector. It is an e-governance project that aims to modernize the processes and procedures related to the functioning of companies and their compliance with regulations.

Here`s a detailed reasoning for why Option 3 is the correct answer:

1. MCA-21 and e-governance: MCA-21 is specifically related to the Ministry of Corporate Affairs (MCA), which is responsible for regulating corporate affairs in India. The primary objective of MCA-21 is to introduce e-governance in the functioning of the MCA and the corporate sector. It leverages information technology and digital platforms to streamline and automate various processes, making them more efficient and transparent.

2. Digitalization of corporate processes: Under MCA-21, several services and processes related to companies, such as company registration, filing of annual returns, and compliance with regulations, have been digitized. This digitalization has made it easier for businesses to interact with the government and has reduced paperwork and bureaucratic inefficiencies.

3. Online portal and services: As part of MCA-21, the Ministry of Corporate Affairs has launched an online portal called the "MCA Portal." This portal provides various services to businesses, company directors, professionals, and shareholders, including online company registration, filing of statutory documents, accessing company information, and making online payments. The MCA Portal has significantly simplified and accelerated these processes, eliminating the need for physical submission of documents in many cases.

4. Benefits of e-governance in corporate sector: The implementation of MCA-21 has brought several benefits to the corporate sector in India. It has improved transparency, reduced corruption, and enhanced ease of doing business. The digitization of processes has also made it easier for companies to comply with legal requirements, reducing the time and effort involved in fulfilling statutory obligations. Moreover, stakeholders can access relevant information and services online, promoting better corporate governance practices.

In summary, MCA-21 is a major initiative taken by the Government of India in the area of e-governance. It aims to modernize and digitize the processes and procedures related to corporate affairs, improving efficiency, transparency, and ease of doing business in the corporate sector.