The Jallianwala Bagh National Memorial (Amendment) Bill, 2018 was passed in Lok Sabha on February 13, 2019. This Bill will lapse following the end of the 16th Lok Sabha. The Bill amends the Jallianwala Bagh National Memorial Act, 1951. The Act provides for the construction of a National Memorial in tribute to individuals killed or wounded on April 13, 1919 in Jallianwala Bagh, Amritsar. The Act also establishes a Trust to manage the National Memorial.

As per the 1951 Act, the Trustees of the Memorial would include, (i) the Prime Minister, as Chairperson, (ii) the President of the Indian National Congress, (iii) the Minister in-charge of Culture, (iv) the Leader of Opposition in Lok Sabha, (v) the Governor of Punjab, (vi) the Chief Minister of Punjab, and (vii) three eminent persons nominated by the central government. The Bill amends this provision to remove the President of the Indian National Congress as a Trustee. Further, it clarifies that when there is no Leader of Opposition in Lok Sabha, then the leader of the single largest opposition party in the Lok Sabha will be the Trustee.

Additionally, the Act provides that the three eminent persons nominated by the central government will have a term of five years and will be eligible for re-nomination. The Bill adds a proviso to allow the central government to terminate the term of a nominated trustee before the expiry of his term without assigning any reason.

The Select Committee of Rajya Sabha to examine the Ancient Monuments and Archaeological Sites and Remains (Amendment) Bill, 2018 (Chairperson: Dr. Vinay P. Sahasrabuddhe) submitted its report.[53] The Bill amends the Ancient Monuments and Archaeological Sites and Remains Act, 1958. The Bill was introduced in Lok Sabha on July 18, 2017 and was passed by the House on January 2, 2018. It was referred to the Rajya Sabha Select Committee on July 26, 2018. The Committee recommended that the Bill be passed by Parliament. Key observations and recommendations of the Committee include:

Prohibited area: A protected monument is defined as an ancient monument which is declared to be of national importance under the Act. Construction is not permitted in the prohibited area (area of 100 metre) around a protected monument, except under certain conditions. The Bill seeks to permit construction of public works in prohibited areas for public purposes. The Ministry of Culture stated to the Committee that it has found no specific reasoning behind the 100 metre limit for prohibited areas.

The Committee noted that in case of certain monuments, the 100 metre prohibition may not be required, and in certain other cases, it may not be sufficient to protect the monument. It recommended that a systematic study should be conducted by experts to determine a rational area limit for prohibiting construction around a monument to ensure its preservation. Further, instead of prescribing a blanket limit, construction around a protected monument should be allowed on a case-by-case basis.

Public works: The Bill defines ‘public works’ as construction of any infrastructure that is financed and carried out by the central government for public purposes. Such infrastructure must be necessary for public safety and security, and must be based on a specific instance of danger to public safety. The Committee noted that this definition does not cover public utility projects that are not critical for public safety and security at large. It also questioned why the definition of public works does not include works that are essential for providing convenience to the public, as long as they do not affect the monument.

An Expert Committee (Chair: Dr. Anoop Satpathy) submitted its report on recommending a methodology for fixing the national minimum wage. This will become the minimum wage in India covering all workers irrespective of their skills, sectors, occupations and rural-urban locations.[54] Key features of the report include:

The Committee recommended that the national minimum wage should be able to meet a working family’s minimum required expenditure on food and non-food (such as clothing, fuel and medical expenses), which should be adequate to preserve the efficiency of workers at their job and the health of their families. The Committee recommended setting the minimum wage at a level that would allow for a minimum recommended intake (per adult per day) of 2,400 calories, 50 grams of protein, and 30 grams of fats.

Based on the above, the Committee recommended a national minimum wage for India at Rs 375 per day (or Rs 9,750 per month) as of July 2018, for a family comprising of 3.6 consumption units. It also recommended introduction of a house rent allowance (city compensatory allowance), averaging up to Rs 55 per day (or Rs 1,430 per month) for urban workers over and above the national minimum wage. This may vary with the type of city and town.

As an alternate to a single national minimum wage, the Committee recommended different national minimum wages for different regions of the country in view of their diverse socio-economic and labour market situations. The Committee grouped all states into five regions based on a composite index and recommended region-specific national minimum wages, varying from Rs 342 per day in one region to Rs 447 per day in another (as of July 2018).

Since the level of minimum wages is linked to the consumption basket, the Committee recommended that an expert committee should review the consumption basket every five years, subject to the availability of NSSO (National Sample Survey Office) data. However, it recommended that during the interim period, the basic minimum wage should be updated in line with the Consumer Price Index every six months, to reflect changes in the cost of living.

Pradhan Mantri Shram Yogi Maan-dhan launched The Ministry of Labour and Employment notified a voluntary pension scheme called the Pradhan Mantri Shram Yogi Maan-dhan, 2019.[55] It intends to provide a minimum assured pension to workers in the unorganized sector. Key features of the scheme include:

Eligibility: The Scheme will apply to unorganised workers between the ages of 18 and 40 years with monthly income of up to Rs 15,000. In order to enrol, the subscriber must have a savings bank account and Aadhar number. Further, the subscriber should not be covered under the National Pension Scheme, Employees’ State Insurance Corporation Scheme or Employees’ Provident Fund Scheme. Unorganised workers include persons engaged as home-based workers, street vendors, or domestic workers.

Minimum assured pension: Each subscriber under the scheme shall receive a minimum assured pension of Rs 3000 per month after attaining the age of 60 years. The central government will match the contribution made by the beneficiary. The government has notified different monthly contribution amounts depending upon the age of joining. For example, a person entering the scheme at 29 years of age will be required to contribute Rs 100 per month.

Family pension: If the subscriber dies while receiving the pension, his spouse will be entitled to receive 50% of the pension as family pension. If he dies before the pension accrues (i.e. before the age of 60 years), his spouse may either join the scheme by paying the contribution or may exit the scheme. If they choose to exit, the spouse will receive the beneficiary’s contribution along with accumulated interest earned by the fund or at the savings bank interest rate, whichever is higher. If both the subscriber and spouse die, the entire corpus will be credited back to the fund.

If the beneficiary becomes disabled prior to completing 60 years of age, his spouse may continue the scheme or exit the scheme. On exiting, the spouse will receive the beneficiary’s contribution with interest as actually earned by fund or at the savings bank interest rate, whichever is higher.

Exit and withdrawal: Any person may exit the scheme under the following conditions: (i) if he exits within 10 years, his share of contribution will be returned to him along with savings bank interest, and (ii) if he exits the scheme after 10 years but prior to completing 60 years of age, he will get his share along with the accumulated interest earned by the fund or at savings bank interest rate, whichever is higher.

Standing Committee submits report on compliance with provisions on deduction and deposit of PF, ESI and Income Tax The Standing Committee on Labour (Chair: Mr. Kirit Somaiya) submitted its report on ‘Compliance with the prescribed provisions of deduction and deposit of PF, ESI and TDS (of Income Tax, etc) by the Employers’.[56] Key observations and recommendations of the Committee include:

Deductions: The Committee was informed by the Ministry that the employer has been authorised by the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 to deduct contribution from the salary of the employee and deposit it into the fund. However, the Committee noted that there were instances where the employer deducted the contribution amount from the employee's salary but failed to deposit it with the concerned authorities. As a result, the employee was made to suffer, despite the fact that statutory deductions from his/her salary had been made. Therefore, it recommended that the Ministry should consider appropriate amendments to the Act to protect the interest of employees.

Notification of default: The Committee noted that employers file electronic challan-cum-return in respect of PF deducted by them with the EPFO on monthly basis. In turn, EPFO sends an SMS to the employee regarding the amount remitted by his employers. The Committee was informed by the Ministry of Labour and Employment that the EPFO is going to institute a system under which an SMS will also be sent to an employee whose PF has not been remitted by his employer. The Committee stressed that the mechanism be put into place at the earliest.

Tax deducted at source (TDS): The Committee was informed by the Central Board of Direct Taxation (CBDT) that it has taken certain steps to help employees whose tax deductions have not been deposited by the employer. It referred to a circular stating that assessing officers can reduce the tax demand of employees by up to Rs 1,00,000 after verifying the relevant documents and by obtaining an indemnity bond (in some cases). The Committee recommended the Ministry of Finance should consider raising the one lakh rupee limit in the interest of welfare of the workers. It further stated that the condition of indemnity bond may be reviewed to bring relief to employees whose TDS has already been deducted from their salary.

The Standing Committee on Labour (Chair: Mr. Kirit Somaiya) submitted its report on ‘Guidelines, Monitoring, Rating and Regulatory System, Status of Investment in Bonds and such Instruments - [Example of Infrastructure Leasing and Financial Services (IL&FS) by PF Funds, Pension Funds]’.[57] Key observations and recommendations of the Committee include:

The Committee noted that the inherent principle of EPF is social security for the vulnerable working class of society. As its basic objective is social security rather than returns on investments, the Committee noted that the amounts should not be deployed in risky investments. The Committee observed that the EPF Organisation (EPFO) is the custodian of the EPF and is required to ensure a balance between security of this fund and returns on investment.

Monitoring Mechanism: The Committee stressed on the need to ensure that the employees’ PF contributions in the EPF are insulated from any bad investments. Towards this, the Committee recommended strengthening the monitoring mechanisms by exercising tighter control over their designated portfolio managers and ensuring impartial external concurrent audit of the investments.

Credit Rating Agencies: The Committee noted that the EPFO makes investments as per the pattern of investment notified by the Ministry of Labour and Employment. As per the current guidelines, investments in corporate bonds is limited to ‘AA’ in case of PSU bonds and ‘AA+’ bonds in case of private sector bonds. These bonds are rated by Credit Rating Agencies (CRAs). CRAs are registered with and regulated by the Securities and Exchange Board of India (SEBI). Further, the CRAs are accredited by RBI as ‘External Credit Assessment Institutions’ for rating banks loans.

The Committee examined the process adopted by Credit Rating Agencies (CRAs) for determining the credit rating of any financial institution. The Committee was of the view that CRAs are not discharging their functions adequately and in a transparent manner. It attributed this to a weak monitoring mechanism by the Ministry of Finance, SEBI, and RBI. The Committee emphasised the need for a healthy monitoring mechanism, rating mechanism and a forewarning system in case of falling credit rating.

It further stressed that the Ministry of Labour & Employment voice the concern of the Committee with the Ministry of Finance and other concerned agencies to ensure that credit rating issued by CRAs are transparent. This will ensure that the provident fund of the employee is secure while ensuring an adequate return on investment.

As per a press release, the Employees’ State Insurance Corporation (ESIC) took decisions at a recent meeting with the aim of improving its service delivery mechanism. The ESIC is a statutory body which administers the ESI Scheme.[58] The ESI scheme is a contributory scheme based on monthly contribution from employers and employees at a fixed percentage of wages paid. Key changes approved include:

It has been reported that the government has approved the reduction in the rate of contribution being paid by employers and employees from 4.75% to 4% and 1.75% to 1% of wages, respectively. Note that a draft notification to reduce the rate of contribution has been issued by the government.[59]

The income limit for availing medical benefit for the dependent parents of an insured person covered under the ESI Scheme has been enhanced from the existing Rs 5000 per month to Rs 9000 per month.

Currently, under the ESI scheme, the state governments also bear 1/8th share of the cost of medical benefit, while the ESIC bears the remaining 7/8thshare of expenses. It has been reported that ESIC will also bear the 1/8thshare of expenditure which was earlier borne by states.

ESIC will acquire additional land of 10.6 acres adjoining the already allotted land of 8.6 acre at Sheelanagar, Visakhapatnam. On this land, a 500 bed ESIC Model Hospital with super specialties will be constructed.

Note that the details of these changes have not been released in the public domain.

The Union Cabinet, chaired by Prime Minister Narendra Modi, approved the constitution of a Development and Welfare Board for De-Notified, Nomadic and Semi-Nomadic Communities on February 19, 2019.[60] This Committee will be chaired by the Vice-Chairman, NITI Aayog and will be responsible for completing the process of identification of De-Notified, Nomadic, and Semi-Nomadic Communities that have not yet been formally classified.

Previously, the National Commission for De-Notified, Nomadic, and Semi-Nomadic Communities had recommended that a Permanent Committee should be established for these communities.

Tenure of National Commission for Safai Karmacharis extended for three years The Union Cabinet approved the extension of the term of the National Commission for Safai Karamcharis for a period of three years starting from March 31, 2019.[61] Safai karamcharis refer to persons who are engaged in manually carrying, cleaning or disposing of human excreta or for any sanitation work. The Commission was set up as a statutory body under the National Commission for Safai Karamcharis Act, 1993.

The Act ceased to have effect from February, 2004. However, the tenure of the Commission has been extended as a non-statutory body under the Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013.

The Commission seeks to (i) monitor implementation, (ii) enquire into complaints regarding the contravention of the Act, (iii) advise central and state governments on effective implementation of the Act, and (iv) take suo-motu notice of matters related to non-implementation of the Act.

The Cinematograph (Amendment) Bill, 2019 was introduced in Rajya Sabha.[62] The Bill amends the Cinematograph Act, 1952. The Bill has been referred to the Standing Committee on Information Technology, which is expected to submit its report within two months. The Act provides for certification of films for exhibition. Further, the Act imposes penalties for various offences such as: (i) exhibition of a film that has not been certified for public exhibition, or (ii) tampering with a film after it has been certified. Key features of the Bill include:

The Bill prohibits a person from using a recording device to make a copy or transmit a film, without written authorisation from the producer of the film. Persons who make copies of a film without authorisation, will be punished with imprisonment of up to three years, or fine up to Rs 10 lakh, or both. A PRS summary of the Bill is available here.

Food Processing Suyash Tiwari ([email protected]) The National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019 introduced

The National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019 was introduced in Rajya Sabha and referred to the Standing Committee on Agriculture.[63],[64] The Bill declares certain institutes of food technology, entrepreneurship, and management as institutions of national importance.

These institutes are the National Institute of Food Technology Entrepreneurship and Management Kundli, and the Indian Institute of Food Processing Technology, Thanjavur. The Bill declares these institutes as National Institutes of Food Technology, Entrepreneurship and Management.

The Union Cabinet approved the National Policy on Electronics 2019, proposed by the Ministry of Electronics and Information Technology (MeitY).[65] The Ministry had earlier released a draft policy in October 2018.[66] The policy aims to position India as a global hub for Electronics System Design and Manufacturing (ESDM), by enabling the industry to compete globally. Key features of the approved policy include:

Objectives: Key objectives of the policy include: (i) promoting manufacturing and export in ESDM to achieve a turnover of USD 400 Billion by 2025, (ii) improving ease of doing business for ESDM industry, (iii) encouraging research and innovation in all sub-sectors of electronics, and (iv) facilitating loans to the industry at competitive rates.

Promoting competition: The policy seeks to create a competitive ESDM sector by incentivizing domestic manufacturing and exports. This will be achieved by: (i) providing suitable tax benefits to the ESDM sector, (ii) providing support for micro, small and medium enterprises in the ESDM sector, and (iii) exempting import duty on capital equipment that is not manufactured in India.

Standards: A standards development framework will be set up, based on global benchmarks, for electronics, information technology, and e-governance. Further, an institutional mechanism will be set up for within MEITY for mandating compliance with standards for electronics products.

Research and innovation: The policy aims to promote research and innovation in the electronics sector by: (i) creating an ecosystem for promoting design and Intellectual Property, (ii) providing support for generation of patents, and (iii) promoting research and start-ups in technology areas such as 5G and artificial intelligence.

Cyber security: The policy proposes to: (i) enhance understanding of cyber security issues related to electronics products, (ii) promote use of secure chips, and (iii) promote a start-up ecosystem for the development of cyber security products.

Cabinet approves National Policy on Software Products 2019 The Union Cabinet approved the National Policy on Software Products 2019.[67] The policy aims to develop India as the global software product hub, driven by innovation, improved commercialisation, sustainable intellectual property, and promoting technology start-ups.

The policy has the following five Missions: To promote the creation of a sustainable Indian software product industry, driven by intellectual property. To nurture 10,000 technology startups in the software product industry, including 1,000 start-ups in Tier II and III towns. To create a talent pool for software product industry through: (i) up-skilling of 10 lakh IT professionals, (ii) motivating one lakh school and college students, and (iii) generating 10,000 specialised professionals to provide leadership.

To build a cluster-based innovation driven ecosystem by developing 20 sectoral and strategically located software product development clusters. A National Software Products Mission will be set up with participation from government, academia, and industry, to monitor schemes and programmes for the implementation of this policy.

An outlay of Rs 1,500 crore is estimated to implement the programmes and schemes under the policy, over the next seven years. This amount will be divided across two funds- the Software Product Development Fund and the Research and Innovation Fund.

The Standing Committee on Science & Technology, Environment & Forests (Chair: Mr. Anand Sharma) submitted its report on the ‘Status of Forests in India’.[68] Key observations and recommendations of the Committee include:

Definition of Forest: The Committee examined the Draft National Forest Draft Policy 2018 which was circulated for public feedback during April 2018. The Committee noted that the word ‘Forest’ is not defined in the Draft Policy. It noted that the Ministry uses the definition of the term as provided by the Supreme Court. The Court defined forests to include all forests statutorily recognised under the Forest (Conservation) Act, 1980. The Committee noted that certain stakeholders had expressed concerns that that this definition did not include ecosystems which don’t have forest-like attributes, such as wetlands or grasslands. Therefore, it recommended that Ministry of Environment, Forest & Climate Change (MoEF) come out with a comprehensive and clear definition of the term ‘Forest’.

Forest cover: The Committee expressed concern about the decline in the forest cover in the north-eastern states, which constitute 65.3% of its geographical area in comparison to the national forest cover of 21.5%. It recommended that the concerned state governments and MoEF take necessary steps to ensure that the decline in forest cover in these states is curbed at the earliest.

Deforestation: The Committee noted that the budget allocation to National Afforestation Programme has been insufficient. This has affected the achievement of the annual targeted area of afforestation during the last few years. The Committee recommended that the MoEF ensure that adequate allocation is made to the National Afforestation Programme and the targets under the Programme are achieved. Further, the Committee noted that the funding pattern for the Programme changed in 2015-16 from a 100% centrally sponsored scheme to a 60-40 sharing scheme between the centre and state. Therefore, the Committee recommended that the concerned state governments provide their share of the changed funding pattern to ensure the success of the Programme.

Suyash Tiwari ([email protected]) Ministry of Petroleum and Natural Gas issues directions to companies to sell 10% ethanol blended petrol from April 2019 The Ministry of Petroleum and Natural Gas issued directions to oil marketing companies to sell 10% ethanol blended petrol in all states and union territories (except Andaman and Nicobar Islands and Lakshadweep) from April 1, 2019.[69] The central government may modify the areas and the specified percentage of ethanol blending and specify the period for the same. to promote housing finance institutions in India.

The Ethanol Blended Petrol Programme was launched in 2003 to promote the use of alternative and environment friendly fuels.[70] Blending ethanol with petrol helps reduce vehicle exhaust emissions and reduces the import burden for petroleum.to promote housing finance institutions in India.

At present, subject to commercial viability, oil marketing companies are mandated to sell 5% ethanol blended petrol.[71] The directions increase the blending percentage from the existing 5% to 10%. Further, the mandate of selling ethanol blended petrol is being extended to the north-eastern states and Jammu and Kashmir. to promote housing finance institutions in India.

Cabinet approves framework for reforms in the exploration and licensing policy The Union Cabinet approved a policy framework for reforms in the exploration and licensing policy for oil and gas fields for enhancing domestic exploration and production.[72],[73] The objectives of the approved framework are: (i) attracting new investment in exploration and production sectors, (ii) intensifying exploration activities in unexplored areas, and (iii) liberalising the policy in production basins. The reforms focus on the following areas: Increasing exploration in unexplored or unallocated areas: In basins with no commercial production, exploration blocks will be auctioned, without any revenue or production share to the government. Currently, for such blocks, the contractor is required to share revenue with the government. However, in case of an annual revenue of more than USD 2.5 billion, contractors will be required to share their revenue with the government.to promote housing finance institutions in India.

At present, during bidding of unexplored or unallocated areas of production basins, equal weightage is given to exploration work programme and revenue share of the government. In the approved framework, the weightage to work programme is being increased to 70%, with 30% weightage to revenue share. to promote housing finance institutions in India.

The framework also provides for shorter exploration periods and royalty concessions for early commencement of production. Further, the contractor will be given marketing and pricing freedom for sale of crude oil and natural gas in certain cases.to promote housing finance institutions in India.

Enhancing gas production: Marketing and pricing freedom will be provided to certain new gas discoveries. A 10% reduction in royalty will be provided for additional gas production from domestic fields over and above the normal production.to promote housing finance institutions in India.

Enhancing production from existing nomination fields: In order to enhance production, detailed plans will be prepared by ONGC and Oil India Limited for the blocks granted to them on nomination basis. Also, they will be allowed to collaborate with private sector for bringing capital and new technology, and increasing production. Ease of doing business: Measures will be taken for improving ease of doing business by setting up a coordination mechanism, simplifying approval processes, creating an alternate dispute resolution mechanism, and strengthening DGH, among other measures.to promote housing finance institutions in India.

CCEA approves PM JI-VAN Yojana for increasing ethanol supply The Cabinet Committee on Economic Affairs (CCEA) has approved the Pradhan Mantri JI-VAN (Jaiv Indhan - Vatavaran Anukool fasal awashesh Nivaran) Yojana.[74] Under the scheme, financial support in the form of viability gap funding (VGF) will be provided to integrated bioethanol projects which produce ethanol using dry plant biomass and other renewable feedstock. The scheme aims to incentivise the production of ethanol through these sources, and increase the supply of ethanol. to promote housing finance institutions in India.

The VGF support will be provided to 12 commercial projects and 10 demonstration projects in two phases: (i) half of the projects in 2018-19 to 2022-23, and (ii) the other half in 2020-21 to 2023-24. to promote housing finance institutions in India.

An outlay of Rs 1,970 crore has been approved for the scheme for the period 2018-19 to 2023-24. Of this, Rs 1,800 crore has been allocated for supporting the 12 commercial projects, and Rs 150 crore has been allocated for supporting the 10 demonstration projects. to promote housing finance institutions in India.

The Ministry of Petroleum and Natural Gas seeks to achieve 10% ethanol blending in petrol by 2022 under the Ethanol Blended Petrol (EBP) programme. The ethanol supply in 2017-18, i.e. 150 crore litres, (highest supply ever) was sufficient for 4.2% ethanol blending. The Ministry aims to bridge the supply gap for the EBP programme through the production of ethanol from biomass and other waste. The ethanol produced by the scheme beneficiaries will be mandatorily supplied to oil marketing companies to increase the blending percentage.

Prachee Mishra ([email protected]) Kisan Urja Suraksha evam Utthaan Mahabhiyan approved The Cabinet Committee on Economic Affairs approved the launch of Kisan Urja Suraksha evam Utthaan Mahabhiyan (KUSUM).[75] The scheme seeks to provide financial and water security to farmers. The scheme aims to add solar capacity of 25,750 MW by 2022. The total central financial support provided under the scheme would be Rs 34,422 crore. to promote housing finance institutions in India.

The proposed scheme consists of three components: Component-A: 10,000 MW of decentralised ground mounted grid connected renewable power plants. Under this component, renewable power plants of capacity 500 kW to 2 MW will be setup by individual farmers/ cooperatives/ panchayats/ farmer producer organisations on their barren or cultivable lands. The power generated will be purchased by the distribution companies. to promote housing finance institutions in India.

Component-B: Installation of 17.5 lakh standalone solar powered agriculture pumps. Under this component, individual farmers will be supported to install standalone solar pumps of up to 7.5 HP capacity. Component-C: Solarisation of 10 lakh grid-connected solar powered agriculture pumps. Under this component, individual farmers will be supported to solarise pumps of up to 7.5 HP capacity.to promote housing finance institutions in India.

12,000 MW of solar power projects approved The Cabinet Committee on Economic Affairs approved the setting up of 12,000 MW grid-connected solar photovoltaic (PV) power projects.[76] These projects will be set up by government producers, who will be provided with a viability gap funding (VGF) support of Rs 8,580 crore. The VGF support could also be used by government or government entities at both the central and state levels. The projects will be set up in a time period of four years, from 2019-20 to 2022-23. to promote housing finance institutions in India.

Phase-II of Grid Connected Rooftop Solar Programme approved The Cabinet Committee on Economic Affairs approved Phase-II of the Grid Connected Rooftop Solar Programme.[77] This seeks to achieve the cumulative capacity of 40,000 MW from rooftop solar (RTS) projects by 2022. The programme will be implemented with total central financial support of Rs 11,814 crore. to promote housing finance institutions in India.

Under Phase-II, central financial assistance will be provided as follows: Residential sector: 40% assistance will be provided for RTS systems with up to 3 kW capacity, and 20% for capacity between 3 and 20 kW. Group Housing Societies/Residential Welfare Associations: The assistance will be limited to 20% for RTS plants for supply of power to common facilities. No assistance will be provided to other categories such as institutional, educational, social, government, commercial, and industrial sectors. In addition, performance based incentives will be provided to distribution companies based on the RTS capacity achieved in a financial year (over and above the base capacity). to promote housing finance institutions in India.

Coal and Mining Suyash Tiwari ([email protected]) Cabinet approves the National Mineral Policy, 2019 The Union Cabinet has approved the National Mineral Policy, 2019.[78] It replaces the National Mineral Policy, 2008. The 2019 policy aims to bring in further transparency, better regulation and enforcement, balanced social and economic growth in the sector, and sustainable mining practices. Key features of the policy include: to promote housing finance institutions in India.

Encouraging private sector: The policy aims to encourage the private sector to take up exploration through measures including: (i) long term trade policies, (ii) harmonising taxes, levies, and royalty with global benchmarks, (iii) rationalisation of reserved areas which have been given to public sector companies, and have not been used, (iv) auction of such reserved areas with more opportunities for private sector participation, and (v) transfer of mining leases.to promote housing finance institutions in India.

Mining licence: The policy provides for: (i) auction of unexplored areas with a composite licence (reconnaissance permit cum prospecting licence cum mining licence) on revenue share basis, and (ii) right of first refusal to holders of reconnaissance permit and prospecting licence when granting mining licences.to promote housing finance institutions in India.

Transportation: The new policy focuses on use of coastal waterways and inland shipping for transportation of minerals. It also provides for creation of dedicated mineral corridors to facilitate the transportation of minerals. Sustainable mining: The policy seeks to utilise the District Mineral Fund for equitable development of project affected persons and areas. It also introduces the concept of inter-generational equity and proposes to constitute an inter-ministerial body to institutionalise this mechanism. Inter-generational equity means that future generations should have as much access to natural resources as the current generation.to promote housing finance institutions in India.

Industry status: The policy proposes to grant mining the status of industry. Currently, it is accounted as an economic activity under the primary (agriculture) sector. This would help increase financing for: (i) mining activities for the private sector, and (ii) acquisition of mineral assets in other countries by the private sector. Technology: The policy provides for an online public portal with provision for generating triggers at higher levels in the event of delay of clearances. It also provides for maintenance of a database of mineral resources and licenses granted.to promote housing finance institutions in India.

A copy of the policy document is not available in the public domain yet. CCEA permits allottees of captive mines or mines with specified end use to sell up to 25% of coal production in open market The Cabinet Committee on Economic Affairs (CCEA) has permitted the allottees of captive mines or mines with specified end use to sell up to 25% of their coal production in open market.[79] to promote housing finance institutions in India.

Currently, allottees of certain coal mines which had been earmarked for specified end use (i.e. for usage by a particular sector) or for captive use (i.e. their own consumption) were not permitted to sell coal in open market. Any coal produced in excess of the allottee’s requirement was mandated to be supplied to Coal India Limited at their notified price, minus handling charges. Such sale was required to be limited to 50% of the annual production from the mine. to promote housing finance institutions in India.

The new guidelines allow allottees to sell up to 25% of their production on ROM basis (run-of-mine production calculated without removing the impurities). The allottees are required to utilise at least 75% of production (ROM basis) of their coal mines for the specified purposes. For open market sale, the allottees are required to pay an additional premium equivalent to 15% of the final price agreed upon during the auction or allotment. This additional premium will be payable over and above the final price. to promote housing finance institutions in India.

CCEA approves continuation of central scheme for Exploration of Coal and Lignite for the period 2017-18 to 2019-20 The Cabinet Committee on Economic Affairs (CCEA) has approved continuation of the central scheme for ‘Exploration of Coal and Lignite’ for the period 2017-18 to 2019-20.[80] Rs 1,875 crore of outlay has been approved for the scheme. to promote housing finance institutions in India.

The approved scheme aims to carry out 2,441.5 km of drilling and 3,575 line km of surface geophysical survey during the three-year period. Under the scheme, regional exploration and detailed drilling will be carried out in blocks not owned by the Coal India Limited. In regional exploration, possible deposits are categorised based on the increasing order of their geological feasibility. Subsequently, detailed drilling is carried out for some of them to assess their economic viability and identify reserves.

Prachee Mishra ([email protected]) Cabinet approves payment of the subscribed share capital in NHB The Union Cabinet approved payment of the face value of the subscribed share capital of Rs 1,450 crore in the National Housing Bank (NHB) to the Reserve Bank of India (RBl).[81] This is consequent to the amendments made in 2018 to the NHB Act, 1987. Under the Finance Act, 2018, the 1987 Act was amended to transfer the equity shares held by the RBI in the National Housing Bank (of Rs 1,450 crore) to the central government. NHB is the principal agency to promote housing finance institutions in India.

Lighthouse projects challenge launched The Ministry of Housing and Urban Affairs has launched a challenge for states and union territories (UTs) to select six sites across the country for the construction of lighthouse projects under Global Housing Technology Challenge-India (GHTC) -India.[82] These selected sites will be used as an ‘open laboratory’ for live demonstration of housing technology. The winning states/UTs will receive central assistance to construct these lighthouse projects as per guidelines under the Pradhan Manti Awas Yojana - Urban. In addition, a Technology Innovation Grant will be provided to the states/UTs to offset the impact of any additional cost implication due to the use of new technology and to provide for any other issues.

Model Building Byelaws, 2016 amended to provide for electric vehicle charging infrastructure The Ministry of Housing and Urban Affairs has amended the Model Building Byelaws, 2016 and the Urban Regional Development Plans Formulation and Implementation Guidelines, 2014 to facilitate the availability of electric vehicle (EV) charging infrastructure.[83] The amended guidelines will act as a guiding document for states and union territories to incorporate the norms and standards of EV charging infrastructure in their respective building byelaws. The central government aims to have 25% of all vehicles on roads to be electric by 2020. Note that in December 2018, the Ministry of Power had released guidelines and standards for charging infrastructure for electric vehicles.[84]

Model Building Byelaws: Based on the occupancy pattern and the total parking provisions in the premises of various building types, charging infrastructure will be provided only for EVs. Currently, the required occupancy is assumed to be 20% of all vehicle holding capacity/ parking capacity at the premises. Urban Regional Development Plans Formulation and Implementation Guidelines: The norms for distribution of public charging stations across a city have been specified. For example, standalone public charging stations must be placed every 25 km on both sides of the highways.

Water Resources Zarka Shabir ([email protected]) Projects worth Rs 1388 crores approved under Namami Gange The Ministry of Water Resources, River Development and Ganga Rejuvenation has approved projects worth Rs 1388 crore focusing on towns along river Yamuna.[85] These projects involve the construction and renovation of sewage treatment plants, online monitoring systems, and other infrastructure projects. Thus far, projects have been approved in Etawah, Firozabad, Agra, Meerat, Baghpat, and Chunar.

In addition to projects focused on the development of infrastructure, the Ministry has also approved projects to revive aquatic biodiversity. Thus far, the Committee has approved conservation projects to be undertaken by the Wildlife Institute of India, the Uttar Pradesh Forest Department, and the National Institute of Urban Affairs.

Zarka Shabir ([email protected]) Cabinet approves continuation of Pradhan Mantri Awas Yojana – Gramin The Union Cabinet has approved the continuation of Pradhan Mantri Awas Yojana – Gramin beyond March 2019 upto 2021-22.[86] For Phase II of the scheme, a target 1.95 crore houses are set to be constructed in this period. For 2019-20, the scheme aims to build 60 lakh houses. For this, the Cabinet has allocated Rs 76,500 crore. At the end of this year, further continuation will be based on third-party evaluation. Administrative expenses associated with the scheme have also been reduced from 4% to 2% of programme funds.

Industries Prachee Mishra ([email protected]) Cabinet approves Phase II of FAME India The Union Cabinet approved Phase II of the scheme Faster Adoption and Manufacturing of Electric Vehicles in India (FAME India Phase II), for promotion of electric mobility in India.[87] The scheme seeks to encourage faster adoption of electric and hybrid vehicle by: (i) offering upfront incentives on purchase of electric vehicles, and (ii) by establishing the necessary charging infrastructure for electric vehicles.

Phase II of the scheme will be implemented from April 1, 2019. It will have a total outlay of Rs 10,000 crore over a period of three years, from 2019 to 2022. Under this phase, benefits of incentives will be extended to only those vehicles which are fitted with advance batteries such as Lithium Ion batteries and other new technology batteries. Phase II will also focus on electrification of public transport including shared transport. Further, the scheme proposes the establishment of charging infrastructure such that there is at least one charging station in a grid of 3 km x 3 km. Around 2,700 charging stations will be established in metros, other million plus cities, smart cities and cities of hilly states across the country. Charging stations are also proposed on major highways connecting major city clusters.

Transport Prachee Mishra ([email protected]) Cabinet approves setting up of SPV for disinvestment of Air India The Union Cabinet has given ex-post facto approval for the creation of the Special Purpose Vehicle (SPV) and associated activities for the disinvestment of Air India and its subsidiaries.[88] The new SPV, Air India Assets Holding Ltd., was created on January 22, 2018, based on an order issued by the Ministry of Civil Aviation.

The following will be transferred to the SPV: Debt of Air India Ltd. amounting to Rs 29,464 crore; The subsidiaries which are not part of Air India strategic disinvestment such as Air India Air Transport Services Ltd., Airline Allied Services Ltd., and Air India Engineering Services Ltd.; and Non-core assets, paintings and artefacts, and other non-operational assets of Air India.

CCEA approves strategic disinvestment of 100% equity shares of government in Kamarajar Port Limited The Cabinet Committee on Economic Affairs has given ‘in principle’ approval for strategic disinvestment of 100% equity shares of the central government in Kamarajar Port Limited (KPL) to the Chennai Port Trust.[89] Currently, the central government and Chennai Port Trust hold 67% and 33% of shares respectively in KPL. The disinvestment will be done in a single stage process, by following ‘arm’s length’ principles. The disinvestment seeks to avoid duplication of capacity creation in the ports and improve efficiency of both ports by facilitating better human resource management.

Cabinet approves new Railway Zone at Vishakhapatnam The Union Cabinet approved setting up of a new Railway Zone at Vishakhapatnam, Andhra Pradesh and a new division with headquarter at Rayagada, Odisha by reorganizing the existing South Central Railway and East Coast Railway.[90] This increases the number of Railway Zones from 17 to 18.

Ministry of Shipping revises guidelines for chartering of ships The Ministry of Shipping has revised its guidelines for chartering (or hiring) of ships by providing Right of First Refusal to ships built in India.[91] This implies that whenever a chartering tender process is undertaken, a bidder offering a ship built in India will be given the first priority to match the lowest bidder quote. A copy of the revised guidelines is not available in the public domain yet.

Cabinet approves continuation of the Khadi Vikas Yojana and Gramodyog Vikas Yojanaa from 2017-18 to 2019-20 The Cabinet Committee on Economic Affairs approved the continuation of eight schemes launched by the Khadi and Village Industries Commission, from 2017-18 to 2019-20, at a cost of Rs 2800 crore.[92] These schemes include the Khadi Grant, the Village Industries Grant, and the Market Promotion and Development Assistance Scheme. Further, these eight schemes have been merged under two heads. These are the Khadi Vikas Yojana and the Gramodyog Vikas Yojanaa.

The Cabinet also approved the Rozgar Yukta Gaon scheme. The scheme aims to introduce enterprise-based business models in the khadi sector through partnerships among artisans, business partners, and Khadi institutions (receiving assistance under the Khadi Reform and Development Programme). The scheme will be implemented in 50 villages. Another key component includes the creation of incentives in production based on an objective scorecard. While the Khadi institutions would automatically be given financial assistance of 30%, they must strive for efficiency, optimal utilization of resources, and reduction of waste to become eligible for additional assistance.

Ministry of Textiles launches scheme for development of knitting and knitwear Roshni Sinha ([email protected]) The Ministry of Textiles launched a new scheme for development of knitting and knitwear sector.[93] The main components of the scheme include: (i) creation of new service centers on Public Private Partnership (PPP) model by industry and associations in the knitting and knitwear clusters, (ii) modernization and upgradation of existing power loom service centres and institution run by Textile Research Associations and Export Promotion Councils Association in knitting and knitwear clusters, and (iii) facilitation, awareness, studies, surveys, market development, and publicity for knitting and knitwear units.

Cabinet approves continuation of the Credit Linked Capital Subsidy and Technology Upgradation Scheme for the period of 2017-18 to 2019-20 The Cabinet Committee on Economic Affairs, approved the continuation of the Credit Linked Capital Subsidy and Technology Upgradation Scheme for the period of 2017-18 to 2019-20 with an outlay of Rs 2,900 crore.[94] The objective of the scheme is to facilitate technology upgradation in Micro, Small and Medium Enterprises (MSMEs) by providing an upfront capital subsidy of 15% (on institutional finance of upto one crore rupees) for induction of well-established and improved technology. In addition, the scheme aims at improving the competitiveness of MSMEs by integrating various ongoing schematic interventions aimed at upgrading technology through: (i) zero defect zero effect manufacturing, and (ii) increasing productivity through waste reduction, design intervention, and cloud computing.

Cabinet approves continuation of the Swadesh Darshan Scheme The Union Cabinet approved the continuation of the Swadesh Darshan Scheme.[95] Launched in 2015, the scheme is a central sector scheme aimed at integrated development of tourism infrastructure in the country. The objectives of the scheme include: (i) developing theme based tourist circuits such as the Buddhist Circuit and the Himalayan Circuit, and (ii) developing public facilities like last mile connectivity and tourist reception centres. The Cabinet has approved Rs 2,056 crore for 60 ongoing projects which are expected to be completed in December 2019. Further Rs 324 crore has been allocated for six projects which are expected to be completed by September 2020. Note that, since 2015, the Ministry of Tourism has sanctioned 77 projects worth Rs 6,122 crore.

Cabinet approves setting up of a new company under Department of Space The Union Cabinet approved the setting up of a company for commercial usage of the research and development work carried out by the Indian Space Research Organization (ISRO) and the Department of Space.[96]

Opportunities for commercial usage of ISRO’s work include: (i) transfer of small satellite technology to industries, (ii) manufacturing small satellite launch vehicles (SLV) in collaboration with the private sector, (iii) mass production of polar SLV through industry, (iv) mass production and marketing of space-based products and services, including launch and applications, (v) transfer of technologies developed and marketing of some associated technologies and products, and (vi) any other avenue deemed fit by the central government.

Home Affairs The Standing Committee on Finance (Chairperson: Dr. M. Veerappa Moily) submitted its report on “Central Assistance for Disaster Management and Relief”.[97] Under the Disaster Management Act 2005, financial assistance is provided to disaster-affected states from the State Disaster Response Fund (SDRF) and the National Disaster Response Fund (NDRF). Key observations and recommendations made by the Committee include the following:

Disaster Mitigation Fund: The Committee recommended that a separate Disaster Mitigation Fund should be operationalised for undertaking permanent mitigation measures in disaster-prone states. It stated that any investment on mitigation and prevention of disaster risk will go a long way in significantly reducing expenditure on relief and disaster response. Further, the Committee recommended that comprehensive insurance coverage should be provided to all properties located in disaster-prone areas.

Funding mechanism: The Committee made various recommendations related to the funding mechanism for disaster relief. It recommended that an additional 10% of the allocation of the centrally sponsored schemes may be specially earmarked for permanent restoration of damaged structures. Further, in order to bring greater flexibility to the funding mechanism, the Committee recommended that borrowing powers of affected states may be enhanced in the event of a disaster.

The Committee noted that 10% of the annual fund allocation of the SDRF may be used for localized state-specific natural calamities. It recommended that this 10% limit should be done away with and all expenditure towards state-specific disasters should be charged to the SDRF. The Committee recommended a 10% increase to the corpus of the SDRF to accommodate this expenditure.