Division as the default method of voting will not only catalyze more debates within political parties but will also encourage MPs to actively engage in lawmaking in Parliament.
Divisions also provide insights into the participation of MPs in the legislative process. When a Bill is passed by a voice vote there is no record of how many MPs were present in the House during the passage of a law.
Last Friday, the government introduced the Triple Talaq Bill in the Lok Sabha. During its introduction, Member of Parliament Asaduddin Owaisi demanded a division on the motion of introduction of the Bill. A motion is a binary question raised in Parliament for a decision to be taken by MPs. A division is a type of voting which records how each MP voted on a motion. The question that the Minister for Law and Justice raised was whether the Triple Talaq Bill could be introduced. 185 MPs voted to support the introduction of the Bill and 74 voted against it. Since the majority vote was in favour, the Bill was introduced in Lok Sabha.
Considering the volume of decisions taken by Parliament divisions or recorded voting is infrequent in the two houses. For example, between 2004 and 2009, only 20 divisions were called for in Lok Sabha. The preferred method for making decisions in Parliament is through a voice vote. In this method, MPs orally convey their agreement or disagreement to a motion. It clubs the individual decisions of MPs in one loud chorus of “Ayes” or “Noes”. Being an oral vote, it does not put on parliamentary record the stand of political parties and individual MPs on contentious political issues.
Division, on the other hand, records how each MP voted on a particular motion. For example, during the passage of the Land Acquisition Act in 2013, Left party MPs moved amendments to the government’s bill and asked for a division on their amendments. Parliamentary record indicates that they lost the vote and the Bill was passed without incorporating their amendments. The same record also reflects for posterity their stand on the contentious issues in the Bill. Often, political parties have defined positions only on contentions Bills. Bills of a technical nature might not be discussed in detail within the political party. Since division gives MPs three choices to vote on an issue (agree, disagree or abstain), it forces political parties to discuss all Bills internally and then take a public stand on it. Political parties also change their stand on issues depending on whether they are in power or not. Data on divisions keeps them accountable on their shifting stands.
Divisions also provide insights into the participation of MPs in the legislative process. When a Bill is passed by a voice vote there is no record of how many MPs were present in the House during the passage of a law. For example, there are currently 542 MPs in the 17th Lok Sabha. However, division data on the Triple Talaq Bill indicates that less than half of them were in the House to take part in the voting on the Bill. Many of the missing MPs were from the treasury benches as 185 votes were cast in favour of introduction of the Bill as against the ruling party’s strength of 303 in Lok Sabha. Publicly available information about how MPs voted in Parliament incentivises them to participate in legislative proceedings.
In many democracies, voting records of MPs are raised in public discussion to analyse their work as a legislator. When Barack Obama was running for his first term as President, the American media pointed out that during his four years as a senator from Illinois, he had missed 24% of his votes. They also highlighted that during his time in the Senate, the median for missed votes was 2%.
In spite of the advantages offered by division, it is not the default method of voting in Parliament. Division is only mandated for a set of motions which require a special majority of the house to be passed. For example, constitutional amendment bills have to be passed by a majority of the total membership of that House and by a majority of not less than two-thirds of the members of the House “present and voting”. To ensure that this condition is fulfilled, a division is called for. On other occasions, individual MPs have to ask for a division. During the term of the last Lok Sabha (2014-19), voting by division was held only on 108 occasions. Only half of these were asked for by MPs, the other half related to constitutional amendment bills.
Our system is not designed to encourage MPs to express their opinion on issues in Parliament. The anti-defection law disenfranchises them of their voting rights and gives political party the tool to bypass intra-party deliberation on issues. Making division/recorded voting as the default method of voting will not only catalyze more debates within political parties but will also encourage MPs to actively engage in lawmaking in Parliament.
Voice voting is the preferred method of decision making by Indian Parliament. MPs in favour of a decision call out “Ayes” and those opposed say “Noes”.
All decisions in Parliament are taken by voting by MPs, whether it relates to extending working hours or passing a Bill. Last week, Speaker Om Birla presided over the first recorded vote in the 17th Lok Sabha. MPs needed to decide whether to allow the introduction of the triple talaq Bill; Minister for Law and Justice Ravi Shankar Prasad wanted permission of the House to introduce the Bill while N K Premachandran (RSP), Shashi Tharoor (Congress) and Asaduddin Owaisi (AIMIM) were opposed to its introduction.
Voice vote & division Voice voting is the preferred method of decision making by Indian Parliament. MPs in favour of a decision call out “Ayes” and those opposed say “Noes”. The Speaker then takes a call on which voices were louder and conveys the decision of the House. The rules of procedure of Lok Sabha do not mandate recording of votes of MPs for every decision taken. Voice voting does not reveal the individual positions taken by MPs.
That is not, however, the only way voting takes place. MPs also have the right to ask for the vote of every MP to be recorded. This is called a division. MPs can vote in favour, oppose or abstain from the vote. Recording of votes is also mandated when there is a constitutional requirement for a special majority of Parliament (for example a constitutional amendment), or after a no-confidence motion. However, MPs do not exercise their right for asking for recoding of votes very frequently. In each of the last three Lok Sabhas, there have been less than 50 occasions when votes of MPs have been recorded.
Last week, Owaisi exercised his right and called for a division on the introduction of the triple talaq Bill. Lok Sabha decided to allow the introduction with 185 votes in favour and 74 opposed; 6 MPs abstained from the vote. As the seating plan for Lok Sabha was not finalised, the voting was done by paper voting slips. MPs signed their names on green paper slips to record that they were in favour, red slips to record opposition and yellow to declare that they were abstaining.
The first recorded vote (division) in Lok Sabha took place on the second day of its sitting in 1952. The House had to decide on the election of the Speaker. In the running were G V Mavalankar and S S More. Mavalankar won with 394 votes in his favour. Voting records indicate that one of the votes cast in favour of Mavalankar was that of More, who voted for his opponent upholding the best traditions of parliamentary democracy. The division took place by counting of voting slips signed by MPs and took some time.
Manual & electronic The manual process of voting was inefficient and consumed a lot of time of the legislature. The West Bengal Legislative Assembly was the first to tackle this problem, by installing an electronic vote recording machine. The Speaker held the controls to the entire process, and the results were visible almost instantaneously on a display board. The system required 17 km of lead-covered cabling and 19,500 junction points.
In 1957, at the beginning of the second Lok Sabha, Parliament adopted a similar electronic vote counting system. Because of the proximity in the seating of MPs in Parliament, the system was designed in such a way that MPs had to use both their hands while voting. The idea being that MPs should not be able to press the voting buttons of their colleagues who might not be present for the vote.
In May 1957, the system was put into use for the first time. A demonstration of the new system took place after the swearing-in of MPs on the first day. Five days later, amendments were moved to the motion of thanks to the President’s address (delivered by Dr Rajendra Prasad), and a division was called on them.
Before the new voting machine could be put to use, a problem was highlighted to the Speaker. One of the MPs was differently-abled and had only one hand, and the machine required use of both hands. The solution provided by the Speaker was that an officer of the House would help the MP vote. In this instance, much to Speaker’s displeasure, rather than wait for the officer’s assistance, fellow legislators helped the MP cast his vote.
In most mature democracies, recorded voting is the preferred mechanism for decision making by Parliament. In India, the anti-defection law has led to limiting the use of recorded voting in Parliament. (The writer is with PRS Legislative Research)
Highlights of this Issue First Session of 17th Lok Sabha begins During the session, 40 new Bills, including Bills to replace Ordinances, have been listed for introduction, consideration and passage. Further, two pending Bills have been listed for consideration and passage.
President’s address to Parliament on policy priorities of new government The address included achievements in key sectors such as macro-economy, employment, infrastructure, environment, agriculture, and education. It sets a target of reaching a $5 trillion economy in five years.
Policy repo rate reduced to 5.75%; reverse repo rate reduced to 5.5% The Monetary Policy Committee reduced the benchmark repo rate and reverse repo rates by 0.25% each. It also indicated further cuts ahead as it shifted its policy stance from neutral to accommodative.
Current Account Deficit at 0.7% of GDP during the fourth quarter of 2018-19 Current Account Deficit in the fourth quarter (January- March) of 2018-19 decreased to USD 4.6 billion (0.7% of Gross Domestic Product) from USD 13 billion (1.8% of GDP) in the corresponding quarter of 2017-18.
The Special Economic Zones (Amendment) Bill, 2019 passed by Parliament The Bill amends the definition of a “person” who may establish an SEZ. In addition to the existing categories, the Bill adds a trust, or any other entity which may be notified by the central government.
Eight Bills introduced in Lok Sabha; two Bills passed Bills introduced include the Triple Talaq Bill, and the Aadhaar (Amendment) Bill. Further, Bills to amend the Jammu and Kashmir Reservation Act, and the Homoeopathy Central Council Act were passed by Lok Sabha.
High Level Committee submits report to RBI on digital payments in India The Committee has set a target of ten-fold growth in digital transactions per capita, doubling the digital transaction value to GDP ratio and tripling the number of digital payment users in three years.
RBI releases Prudential Framework for Resolution of Stressed Assets RBI has released a circular on resolution of stressed assets. It provides for a review period of 30 days, during which the lenders may decide on a Resolution Plan and an inter-creditor agreement between lenders.
Cabinet approves the Public Premises Amendment Bill, 2019 The Bill will enable an estate officer to evict unauthorised occupants from government residences in a specified manner. The officer may also levy damage charges for the accommodation held during the period of litigation.
GST Council gives two-year extension to the National Anti-Profiteering Authority The National Anti-Profiteering Authority was established in November 2017 to ensure that reductions in GST rates or benefits of input tax credit are passed on to consumers by commensurate reductions in prices.
Ministry issues amendments to the Foreigners Tribunal Order, 1964 The amendments relate to: (i) authorities that can refer matters to the Tribunals, and (ii) the process for dealing with appeals related to the inclusion of names in the National Register of Citizens in Assam.
Government broadens terms of reference of task force drafting new direct tax law The additional terms include: (i) anonymised verification and scrutiny, (ii) reduction in litigation and expeditious disposal of appeals, and (iii) reduction of compliance burden through simplification of procedures.
First Session of 17th Lok Sabha begins Vinayak Krishnan ([email protected]) The first session of the 17th Lok Sabha commenced on June 17, 2019.[1] Lok Sabha will have 30 sitting days and Rajya Sabha will sit for 27 days. Two pending Bills have been listed for consideration and passage in the session. These are the Allied and Healthcare Professionals Bill, 2018, and the Cinematograph (Amendment) Bill, 2019. Further, 40 new Bills have been listed for introduction, consideration and passage. These include Bills to replace Ordinances such as the Aadhaar and Other Laws (Amendment) Bill, 2019, and the Central Educational Institutions (Reservation in Teachers’ Cadre) Bill, 2019.
During the month, Parliament passed the Special Economic Zones (Amendment) Bill, 2019, which allows trusts to establish SEZs. Further, two Bills have been passed by Lok Sabha. These were the Homoeopathy Central Council (Amendment) Bill, 2019, and the Jammu and Kashmir Reservation (Amendment) Bill, 2019.
For details of the legislative agenda during the session, see here. President addresses first joint sitting of Parliament, outlines the agenda of the new government Anya Bharat Ram ([email protected]) The President of India, Mr. Ram Nath Kovind, addressed a joint sitting of both Houses of Parliament on June 20, 2019.[2] He outlined the major policy achievements and objectives of the government in his address. Key highlights of the address include:
Elections: The proposal of ‘One Nation, Simultaneous Elections’ will be considered to reduce the frequency of elections. Economy: By 2024, the government seeks to make India a five trillion dollar economy, and improve its ranking in the Ease of Doing Business Index. Finance and banking: Since 2014, Rs 7.3 lakh crore have been transferred through the Direct Benefit Transfer (DBT) scheme. Further, DBT has plugged leakages and helped reduce ineligible beneficiaries. Further, the Insolvency and Bankruptcy Code, 2016 has helped banks settle loans of more than Rs 3.5 lakh crore.
Agriculture: Income support to farmers has been extended to all farmers in the country. The expected expenditure on this is Rs 90,000 crore per annum. To improve agricultural productivity, Rs 25 lakh crore will be invested in the sector
Education: The government has provided 10% reservation in education and employment for the economically weaker sections of society. In higher education, the government has increased the amount of scholarship provided by 25%, and seeks to increase the number of seats by 1.5 times, by the year 2024.
Employment: Provisions will be made to give entrepreneurs easy access to loans. 50,000 start-ups will be established in the country by 2024. To promote the retail industry, a pension scheme has also been approved for small retailers. A National Traders Welfare Board will be constituted, and a National Retail Trade Policy will be formulated for traders.
Health: The Ayushman Bharat Scheme has been implemented to provide health insurance to 50 crore poor persons. To provide medicines at affordable rates, 5,300 Jan Aushadhi Kendras have been opened. Infrastructure: The government is working to improve infrastructure in 112 aspirational districts in the country. National Highways will be constructed and upgraded. Further, nearly two crore new houses will be built in the next three years.
Environment: The Ministry of Jalshakti has been created to work towards water conservation. To address the challenges of air pollution, the National Clean Air Programme has been started in 102 cities. For a PRS summary of the President’s speech, see here.
Gayatri Mann ([email protected]) Repo and reverse repo rate reduced to 5.75% and 5.5% respectively The Monetary Policy Committee (MPC) released its first Bi-Monthly Monetary Policy Statement of 2019-20.[3] The policy repo rate (the rate at which the RBI lends money to banks) was reduced from 6.25% to 6%. Other decisions of the MPC include:
The reverse repo rate (the rate at which the RBI borrows money from banks) was reduced from 6% to 5.75% The marginal standing facility rate (the rate at which banks can borrow additional money) and the bank rate (the rate at which the RBI buys or rediscounts bills of exchange) were reduced from 6.25% to 6%. Further, it decided to change the monetary policy stance from neutral to accommodative. Current Account Deficit at 0.7% of GDP during the fourth quarter of 2018-19
India’s Current Account Deficit (CAD) in the fourth quarter (January- March) of 2018-19 decreased to USD 4.6 billion (0.7% of Gross Domestic Product) from USD 13 billion (1.8% of GDP) in the corresponding quarter of 2017-18.[4] CAD in the previous quarter, i.e. the third quarter (October- December) of 2018-19 was USD 17.7 billion (2.7% of GDP). The year-on-year decrease in CAD was primarily due to a lower trade deficit (the difference between a country’s exports and imports) of USD 35.2 billion in the fourth quarter of 2018-19, as compared to USD 41.6 billion in the corresponding period of the previous year. Foreign exchange reserves increased by USD 14.2 billion in the fourth quarter of 2018-19, as compared with an increase of USD 13.2 billion in the fourth quarter of 2017-18. In the financial year 2018-19, CAD increased to 2.1% of GDP from 1.8% in 2017-18. India’s trade deficit increased to USD 180.3 billion from USD 160 billion in 2017-18. Table 2 shows the balance of payments in 2018-19.
Finance High Level Committee submits its report on deepening of digital payments Anurag Vaishnav ([email protected]) The High Level Committee (Chair: Nandan Nilekani) on Deepening of Digital Payments submitted its report to the RBI.[5] The terms of reference of the Committee included: (i) reviewing the existing status of digital payments in India, (ii) identifying gaps and recommending measures to bridge them, (iii) assessing the current levels of digital payments in financial inclusion, and (iv) suggesting a medium-term strategy for deepening of digital payments. Key recommendations of the Committee include:[6]
Targets: The Committee has set the following targets to be achieved in 3 years: (i) ten-fold increase in per capita digital transactions (from current 22.4 to 220 per annum), (ii) doubling the value of digital transactions as a proportion of GDP (from 769% currently to 1500%), and (iii) tripling the number of digital payment users (from estimated 10 crore currently to 30 crore).
Specific payment mechanisms: Currently, merchants pay a Merchant Discount Rate (MDR) to banks for accepting payments from customers through debit (or credit) cards. The Committee recommended that the MDR should be subsidised by the government and interchange fee on card payments should be reduced by 15 basis points to incentivise digital payments. It also recommended that RBI setup a committee to review the MDR on a periodic basis.
Direct Benefit Transfer (DBT): Government departments and banks must provide a dedicated grievance redressal mechanism particularly in vernacular language, for processing connectivity and authentication errors in DBT transfer. Further, validation services such as Public Financial Management System and National Payments Corporation of India should be used to reduce the incidence of transaction failure because of wrong account or Aadhaar details.
Government payments: The Committee recommended that the all government departments must ensure that all pay-outs are through digital means, including payments for goods and services procured, Direct Benefit Transfer, salaries and pensions. Financial Inclusion: The Committee recommended that the RBI should develop a quantitative Financial Inclusion Index to compare different areas in financial inclusion.
RBI releases Prudential Framework for Resolution of Stressed Assets Anurag Vaishnav ([email protected]) Reserve Bank of India has released a prudential framework for resolution of stressed assets by banks.[7] The prudential framework revises an earlier circular of RBI (issued in February 2018) on resolution of stressed assets. The 2018 circular was struck down by the Supreme Court in April 2019. It held that the circular issued by RBI was outside the scope of the power given to it under Article 35AA of the Banking Regulation (Amendment) Act, 2017.[8] The prudential framework states that lenders should recognise stress in loan accounts immediately on default, by classifying such assets as special mention accounts (SMA) in the following categories:
The revised circular also allows lenders to categorise revolving credit facilities like cash credit into two SMA categories. The prudential framework provides for a review period of 30 days from the day a borrower is reported to be in default. During this period, lenders may decide on a Resolution Plan or may choose to initiate legal proceedings for insolvency or recovery of the debt. Resolution Plan refers to a plan put forth to revive an entity from insolvency.
Further, all lenders should enter into an inter-creditor agreement (ICA) during this Review Period in all cases where a RP is to be implemented. Any decision agreed by the ICA by: (a) lenders representing 75% of the total outstanding credit, and (b) 60% of total lenders, shall be binding upon all lenders.
The Resolution Plan shall be implemented within 180 days from the end of the Review Period. The Review Period should not commence later than: (i) the reference date (if the account is in default on the reference date), or (ii) the date of first default after the reference date. The reference date for this purpose, for different amount of total exposure is noted in Table 4.
RBI constitutes Committee to review the ATM interchange fee structure Anurag Vaishnav ([email protected]) Reserve Bank of India has constituted a Committee to examine ATM charges and fees with a view to give a boost to deployment of ATMs in unbanked areas.[9]
The terms of reference of the Committee include (a) reviewing existing costs, charges and interchange fees for ATM transactions, (b) reviewing pattern of usage of ATMs by cardholders, (c) assessing costs associated with the ATM ecosystem, and (d) making recommendations on optimal interchange fee. The chairperson of the Committee will be Mr. V.G. Kannan (Chief Executive of the Indian Banks’ Association).
Ministry of Finance broadens the terms of reference of the task force set up to draft new direct tax law Suyash Tiwari ([email protected]) The Ministry of Finance has broadened the terms of reference of the task force set up to draft a new direct tax law.[10] The task force was constituted in November 2017 to review the Income Tax Act, 1961 and draft a new direct tax law keeping in view: (i) direct tax system prevalent in various countries, (ii) international best practices, (iii) economic needs of India, and (iv) any other connected matters.
The Ministry has added the following terms for consideration by the task force: (i) anonymised verification and scrutiny, (ii) reduction in litigation and expeditious disposal of appeals, (iii) reduction of compliance burden through simplification of procedures, (iv) mechanism for system based cross verification of financial transactions, and (v) sharing of information among the departments responsible for GST, customs and direct taxes, and the Financial Intelligence Unit.
The task force is required to submit its report by July 31, 2019. GST Council approves extension of tenure of the National Anti-Profiteering Authority by two years Suyash Tiwari ([email protected]) The GST Council approved extension of tenure of the National Anti-Profiteering Authority by two years.[11] The National Anti-Profiteering Authority was established in November 2017 to ensure that reductions in GST rates or benefits of input tax credit are passed on to consumers by commensurate reductions in the prices of goods and services.[12],[13] In case the Authority finds a violation of this provision by a taxpayer, it may order (i) a refund of the excess amount charged, (ii) reduction in prices, (iii) imposition of penalty, or (iv) cancellation of GST registration of the taxpayer.[14]
The Central Goods and Services Tax Rules, 2017 specify that the Authority will cease to exist two years after the date its Chairman takes charge, unless the GST Council recommends otherwise. The tenure of Authority has been extended by two years (till November 2021).
CBDT issues revised guidelines for compounding of tax-related offences Suyash Tiwari ([email protected]) The Central Board of Direct Taxes (CBDT) issued revised guidelines for compounding of offences under direct tax laws.[15] Compounding of an offence refers to settlement of prosecution case against the offender in lieu of payment of due taxes and other charges by the offender. Other charges include penalties, interest on the amount due, and compounding charges (charges required to be paid for settlement of cases).
The revised guidelines make certain offences under the Income Tax Act, 1961 (which were compoundable earlier) non-compoundable in nature, i.e. prosecution cases filed under these offences cannot be settled by payment of due taxes and other charges. These offences are: (i) removal of or dealing with books of account (or other such evidences marked for seizure) against orders of the authorised officers (Section 275A of the Act), (ii) refusal to give the authorised officers access to books of account or other documents which are stored in electronic form (Section 275B of the Act), and (iii) removal, concealment, transfer, or delivery of property to thwart tax recovery (Section 276 of the Act).
Further, the revised guidelines make the following offences non-compoundable (in general): (i) offences against persons who have enabled others in tax evasion, (ii) offences related to undisclosed foreign bank account or assets, (iii) offences related to the Benami Transactions (Prohibition) Act, 1988, and (iv) offences related to the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015. The revised guidelines came into effect on June 17, 2019. Applications for compounding made before this date will continue to be dealt with in accordance with the previous guidelines.
Law and Justice Roshni Sinha ([email protected]) Muslim Women (Protection of Rights on Marriage) Bill, 2019 introduced in Lok Sabha The Muslim Women (Protection of Rights on Marriage) Bill, 2019 was introduced in Lok Sabha.[16] It replaces an Ordinance promulgated on February 21, 2019.[17] Key features of the Bill are as follows:
The Bill makes all declaration of talaq, including in written or electronic form, to be void (i.e. not enforceable in law) and illegal. It defines talaq as talaq-e-biddat or any other similar form of talaq pronounced by a Muslim man resulting in instant and irrevocable divorce. Talaq-e-biddat refers to the practice under Muslim personal laws where pronouncement of ‘talaq’ thrice in one sitting by a Muslim man to his wife results in an instant and irrevocable divorce.
Offence and penalty: The Bill makes declaration of talaq a cognizable offence, attracting up to three years imprisonment with a fine. (A cognizable offence is one for which a police officer may arrest an accused person without warrant.) The offence will be cognizable only if information relating to the offence is given by: (i) the married woman (against whom talaq has been declared), or (ii) any person related to her by blood or marriage.
The Bill provides that the Magistrate may grant bail to the accused. The bail may be granted only after hearing the woman (against whom talaq has been pronounced), and if the Magistrate is satisfied that there are reasonable grounds for granting bail.
The offence may be compounded by the Magistrate upon the request of the woman (against whom talaq has been declared). Compounding refers to the procedure where the two sides agree to stop legal proceedings, and settle the dispute. The terms and conditions of the compounding will be determined by the Magistrate.
Allowance and custody: A Muslim woman against whom talaq is declared is entitled to seek subsistence allowance from her husband for herself and for her dependent children. She is also entitled to seek custody of her minor children. The amount of the allowance and manner of custody will be determined by the Magistrate.
The Aadhaar and Other Laws (Amendment) Bill, 2019 introduced in Lok Sabha The Aadhaar and Other Laws (Amendment) Bill, 2019 was introduced in Lok Sabha.[18] It replaces an Ordinance promulgated on March 2, 2019.[19] The Bill amends the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, the Indian Telegraph Act, 1885, and the Prevention of Money Laundering Act, 2002. The Aadhaar Act provides targeted delivery of subsidies and benefits to individuals residing in India by assigning them unique identity numbers, called Aadhaar numbers.
Offline verification: Under the Aadhaar Act, an individual’s identity may be verified by Aadhaar ‘authentication’. Authentication involves submitting the Aadhaar number, and their biometric and demographic information to the Central Identities Data Repository for verification. The Bill additionally allows ‘offline verification’ of an individual’s identity, without authentication, through modes specified by the Unique Identification Authority of India (UIDAI) by regulations.
Voluntary use: The Act provides for the use of Aadhaar number as proof of identity of a person, subject to authentication. The Bill replaces this provision to state that an individual may voluntarily use his Aadhaar number to establish his identity, by authentication or offline verification. The Bill states that authentication of an individual’s identity via Aadhaar, for the provision of any service, may be made mandatory only by a law of Parliament.
The Bill amends the Telegraph Act, 1885 and the Prevention of Money Laundering Act, 2002 to state that telecom companies, banks and financial institutions may verify the identity of their clients by: (i) authentication or offline verification of Aadhaar, or (ii) passport, or (iii) any other documents notified by the central government. The person has the choice to use either mode to verify his identity and no person shall be denied any service for not having an Aadhaar number.
UIDAI Fund: Under the Act, all fees and revenue collected by the UIDAI shall be credited to the Consolidated Fund of India. The Bill removes this provision, and creates the Unique Identification Authority of India Fund. All fees, grants, and charges received by the UIDAI shall be credited to this fund. The fund shall be used for expenses of the UIDAI, including salaries and allowances of its employees.
Health and Family Welfare Gayatri Mann ([email protected]) The Indian Medical Council (Amendment) Bill, 2019 introduced in Lok Sabha The Indian Medical Council (Amendment) Bill, 2019 was introduced in Lok Sabha.[20] The Bill amends the Indian Medical Council Act, 1956 and replaces the Indian Medical Council (Second Amendment) Ordinance, 2019 that was promulgated on February 21, 2019. The Act sets up the Medical Council of India (MCI), which regulates medical education and practice. Key features of the Bill include:
Supersession of the MCI: The 1956 Act provides for supersession of the MCI and its reconstitution within a period of three years from the date of its supersession. In the interim period, the Act requires the central government to constitute a Board of Governors, to exercise the powers of the MCI. The Bill amends the Act to reduce the time period for supersession of the MCI from three years to two years.
The Act provides for the Board of Governors to consist of up to seven members including persons of eminence in medical education, appointed by the central government. The Bill amends this provision to increase the strength of the Board from seven members to 12 members. Further, it allows for persons with proven administrative capacity an experience to be selected in the Board. The Bill provides for the Board of Governors to be assisted by a Secretary General who will be appointed by the central government.
The Homoeopathy Central Council (Amendment) Bill, 2019 passed by Lok Sabha The Homoeopathy Central Council (Amendment) Bill, 2019 was introduced and passed by Lok Sabha.[21] It amends the Homoeopathy Central Council Act, 1973 and replaces the Homoeopathy Central Council (Amendment) Ordinance, 2019 that was promulgated on March 2, 2019. The Act sets up the Central Council of Homoeopathy which regulates homoeopathic education and practice.
Time period for supersession of the Central Council: The 1973 Act was amended in 2018 to provide for the supersession of the Central Council. The Central Council was required to be reconstituted within one year from the date of its supersession. In the interim period, the central government constituted a Board of Governors, to exercise the powers of the Central Council. The Bill seeks to increase the time period for supersession of the Central Council from one year to two years.
The Dentist (Amendment) Bill, 2019 introduced in Lok Sabha The Dentists (Amendment) Bill, 2019 was introduced in Lok Sabha.[22] The Bill amends the Dentists Act, 1948. The Act regulates the profession of dentistry and constitutes: (i) the Dental Council of India, (ii) State Dental Councils, and (iii) Joint State Dental Councils.
A register of dentists is maintained under the Act in two parts, Part A and Part B. Persons possessing recognised dental qualifications are registered in Part A and persons not possessing such qualifications are registered in Part B. The persons in Part B are Indian citizens who have been practicing as dentists for at least five years prior to a registration date notified by the state government.
Composition of the dental councils: According to the Act, composition of the Dental Council of India, State Dental Councils, and Joint State Dental Councils includes representation from dentists registered in Part B. The Bill seeks to remove the mandatory requirement of the representation of dentists registered in Part B in these Councils.
Education Gayatri Mann ([email protected]) The Central Educational Institutions (Reservation in Teacher’s Cadre) Bill, 2019 introduced in Lok Sabha The Central Educational Institutions (Reservation in Teachers’ Cadre) Bill, 2019 was introduced in Lok Sabha.[23] It replaces an Ordinance promulgated on March 7, 2019. The Bill provides for reservation of teaching positions in central educational institutions for persons belonging to: (i) Scheduled Castes, (ii) Scheduled Tribes, (iii) socially and educationally backward classes, and (iv) economically weaker sections. The key features of the Bill include:
Reservation of posts: The Bill provides for reservation of posts in direct recruitment of teachers (out of the sanctioned strength) in central educational institutions. For the purpose of such reservation, a central educational institution will be regarded as one unit. This implies that the allocation of teaching posts for reserved categories would be done on the basis of all positions of the same level (such as assistant professor) across departments. Note that, under previous guidelines, each department was regarded as an individual unit for the purpose of reservation.
Coverage and exceptions: The Bill will apply to ‘central educational institutions’ which include universities set up by Acts of Parliament, institutions deemed to be a university, institutions of national importance, and institutions receiving aid from the central government.
However, it excludes certain institutions of excellence, research institutions, and institutions of national and strategic importance which have been specified in the Schedule to the Bill. It also excludes minority education institutions.
Home Affairs Vinayak Krishnan ([email protected]) The Jammu and Kashmir Reservation (Amendment) Bill, 2019 passed by Lok Sabha The Jammu and Kashmir Reservation (Amendment) Bill, 2019 was introduced and passed by Lok Sabha.[24] The Bill amends the Jammu and Kashmir Reservation Act, 2004 and replaces an Ordinance promulgated on March 1, 2019. The Act provides for reservation in appointment and promotions in state government posts, and admission to professional institutions for certain reserved categories. Professional institutions include government medical colleges, dental colleges, and polytechnics. Key features of the Bill include:
Extension of reservation: The Act provides for reservation in appointment and promotions in certain state government posts to persons belonging to socially and educationally backward classes. It defines socially and educationally backward classes to include persons living in areas adjoining the Actual Line of Control. The Bill amends this to include those persons living in areas adjoining the International Border, within the ambit of this reservation.
Further, the Act states that any person who has been appointed on the basis of residence in an area adjoining the Line of Control, must serve in such areas for at least seven years. The Bill extends this condition to persons living in areas adjoining the International Border as well.
Exclusion from reservation: The Act states that any person whose annual income exceeds three lakh rupees or other amount as notified by the state government, would not be included within socially and educationally backward classes. However, this exclusion does not apply to persons living in areas adjoining the Actual Line of Control. The Bill states that this exclusion will not apply to persons living in areas adjoining the International Border also.
Ministry issues amendment to the Foreigners (Tribunals) Order, 1964 The Ministry of Home Affairs issued amendments to the Foreigners (Tribunal) Order, 1964.[25] The Order provides for the creation of Tribunals to adjudicate on whether an individual is a foreigner. A foreigner is anyone who is not a citizen of India. They key amendments are:
Reference of matters to Tribunals: Under the 1964 Order, the central government could refer the question of whether an individual is a foreigner, to the Tribunal. The amendment states that in addition to the central government, a (i) state government, (ii) union territory administration, or (ii) district magistrate may also refer such matters to the Tribunal.
Appeal process for National Register of Citizens: Any person whose name has been excluded or incorrectly included in the National Register of Citizens (NRC) in Assam can register a complaint with the Local Registrar of Citizen Registration.[26] Appeals against decisions of the Registrar can be made to the Tribunals constituted under the Order, within sixty days. The amendments provide the process for dealing with such appeals.
The amendments state that an individual who files an appeal must provide a copy of the rejection order received from the NRC authorities. Following this, the Tribunal must issue a notice to the District Magistrate to produce NRC records within thirty days of the notice. The final order of the Tribunal, which will determine whether the individual is eligible for inclusion in the NRC, must be given within 120 days of the production of records. In case the individual does not appeal within 60 days, the central/state government, union territory administration, or district magistrate, may refer the question of whether the individual is a foreigner, to the Tribunal.
Agriculture Suyash Tiwari ([email protected]) Third advance estimates of production of major crops for 2018-19 released The Ministry of Agriculture and Farmers Welfare released the third advance estimates of production of major foodgrains and commercial crops for the year 2018-19.[27] Table 5 gives a comparison of the third advance estimates for 2018-19 with the final estimates for 2017-18. Following are some of the highlights:
Foodgrain production in 2018-19 is estimated to marginally decrease by 0.6% as compared to the final estimates for 2017-18. The decrease is due to a 7.7% decline in the production of coarse cereals and an 8.7% decline in the production of pulses. The production of cereals is estimated to marginally increase by 0.2% in 2018-19. Rice production in 2018-19 is estimated to increase by 2.5% as compared to the final estimates for 2017-18. Wheat production is estimated to increase by 1.3% in 2018-19.
The production of oilseeds is estimated to marginally decrease by 0.1% in 2018-19 as compared to 2017-18. During this period, while groundnut production is estimated to decrease by 29.7%, the production of soyabean is estimated to increase by 25.7%. Production of cotton is estimated to fall by 15.9%, while production of sugarcane is estimated to increase by 5.4% to 400.4 million tonnes in 2018-19.
Commerce and Industry The Special Economic Zones (Amendment) Bill, 2019 passed by Parliament Gayatri Mann ([email protected]) The Special Economic Zones (Amendment) Bill, 2019 was introduced and passed by Parliament.[28] It amends the Special Economic Zones Act, 2005 and replaces an Ordinance that was promulgated on March 2, 2019. The Act provides for the establishment, development, and management of Special Economic Zones for the promotion of exports.
Definition of person: The Act allows a “person” to establish an SEZ. The definition of a person includes an individual, a Hindu undivided family, a company, a co-operative society, a firm, or an association of persons. The Bill adds two more categories to this definition by including a trust, or any other entity which may be notified by the central government.
Ministry releases draft amendments to the Copyright Rules, 2013 Vinayak Krishnan ([email protected]) The Ministry of Commerce and Industry released draft amendments to the Copyright Rules, 2013, for public feedback.[29] The Copyright Rules, 2013, were notified under the Copyright Act, 1957. The Act defines the rights of authors of creative works such as books, plays, music, films and other works of art, and computer software. Key changes proposed in the draft amendments are as follows:
Appellate Board: The Copyright Act, 1957 provided for a Copyright Board to adjudicate disputes under the Act, such as those related to assignment of copyright, and the term of a copyright. In 2017, the functions of the Copyright Board were subsumed by the Intellectual Property Appellate Board, which was set up under the Trade Marks Act, 1999. The draft amendments seek to replace references to the Copyright Board with the Intellectual Property Appellate Board.
Public broadcasting: The Copyright Act allows public broadcast of literary or musical works, and sound recordings, without the consent of the owner of the copyright. In case of a public broadcast, a broadcaster is required to: (i) give prior notice to the owner of the work of its intent to publicly broadcast their work, and (ii) pay certain royalties as determined by the Appellate Board. The 2013 Rules state that separate notices must be provided for radio or television broadcast, and that the Appellate Board must determine separate royalties for radio and television. The draft amendments seek to remove references to radio and television, and state that separate notices must be provided and royalties determined for each mode of broadcast.
Copyright Societies: The Copyright Act provides for copyright societies, which issue licences for copyrighted works, and collect and distribute license fees to authors. The draft amendments state that every copyright society must publish an Annual Transparency Report on its website. The Report must include, information on: (i) activities in the financial year, and (ii) revenue for each category of rights administered by the society.
Housing and Urban Affairs Prachee Mishra ([email protected]) Cabinet approves the Public Premises (Eviction of Unauthorised Occupants) Amendment Bill, 2019 The Union Cabinet approved introduction of the Public Premises (Eviction of Unauthorised Occupants) Amendment Bill, 2019.[30] The 2019 Bill seeks to replace the Public Premises (Eviction of Unauthorised Occupants) Amendment Bill, 2017, which lapsed with the dissolution of the 16th Lok Sabha.
The Bill seeks to ensure speedy eviction of unauthorised occupants from government residences, and increase the availability of such accommodation for eligible persons. The Bill will enable an estate officer to evict unauthorised occupants from government residences in a specified manner. The officer may also levy damage charges for the accommodation held during the period of litigation.
Energy Prachee Mishra ([email protected]) Dispute resolution mechanism for wind/solar sector approved The Ministry of New and Renewable Energy approved the setting up of a dispute resolution mechanism for disputes between solar/ wind power developers, and the Solar Energy Corporation of India (SECI)/ National Thermal Power Corporation (NTPC).[31] Under the mechanism, a three member Dispute Resolution Committee will be set up. The Committee members will be eminent persons located in the NCR of Delhi. This mechanism will be applicable for all solar/ wind schemes and projects being implemented by the SECI/NTPC.
The Committee will consider the following type of cases: (i) all cases of appeals against decisions given by SECI on extension of time requests based on the terms of contract, and (ii) all requests for extension not covered under the terms of contract. The recommendations of the Committee and the Ministry’s observations will be placed before the Minister for New and Renewable Energy for final decision.
Expert group constituted to review Indian Electricity Grid Code The Central Electricity Regulatory Commission (CERC) has constituted an expert group to review the Indian Electricity Grid Code.[32] The group is chaired by Mr. Rakesh Nath, ex-chairperson of the Central Electricity Authority and ex-member (tech) of the appellate tribunal for electricity. Comments on the Code are invited till July 12, 2019.[33]
The Code lays down the rules, and standards to be followed by the various agencies and participants in the system to plan, develop, maintain and operate the power system. The system must be operated in the most efficient, reliable, economic and secure manner, while facilitating healthy competition in the generation and supply of electricity.
Road Transport and Highways Prachee Mishra ([email protected]) Disinvestment of Air India approved The Cabinet Committee on Economic Affairs (CCEA) had given in-principle approval to the strategic disinvestment of Air India and its five subsidiaries on June 28, 2017.[34] Following this, the CCEA set up an Air India Specific Alternative Mechanism (AISAM).
On March 28, 2018, the AISAM decided to not proceed with the disinvestment due to issues like volatile crude oil prices and adverse fluctuations in exchange rates. Since then, there has been an improvement in the financial and operational performance of Air India. Therefore, the central government has decided to go ahead with the disinvestment of the company, as per the recommendations of AISAM.
Ministry of Road Transport releases draft amendments to the Central Motor Vehicles Rules, 1989 The Ministry of Road Transport and Highways released two draft notifications amending the Central Motor Vehicles Rules, 1989.[35],[36],[37],[38] These Rules provide details on licensing of drivers, construction, maintenance, and registration of motor vehicles, permits for vehicles, and control of traffic.
Exemption to battery operated vehicles: The first draft notification seeks to amend the Rules to exempt battery operated vehicles (electric vehicles) from payment of fees in certain cases. These include issue or renewal of registration certificate, or assignment of new registration mark (or number).
Minimum educational qualification for transport vehicle drivers: Currently, under the Rules, a transport vehicle driver must have passed class eight for obtaining a driving licence. The second draft notification seeks to remove this requirement. As per the Motor Vehicles Act, 1988, a transport vehicle means a public service vehicle, a goods carriage, an educational institution bus, or a private service vehicle. Comments on both the draft Rules are invited within 30 days from the date of publication (that is, July 18, 2019).
Jal Shakti Anurag Vaishnav ([email protected]) Jal Shakti Abhiyan to be launched from July 2019 The Department of Drinking Water and Sanitation will launch the Jal Shakti Abhiyan, a campaign aimed at rainwater harvesting and water conservation in 255 water-stressed districts in the country.[39] For the purpose of this campaign, districts with blocks where groundwater levels are critical or over-exploited are to be considered as water-stressed districts.
The ground water resources are assessed in units, that is, blocks/talukas/mandals/watersheds. These assessment units are categorised for ground water development based on two criteria: (a) stage of ground water development, and (b) long-term (generally for a period of 10 years) trend of pre and post monsoon water levels.
Units with stage of ground water development over 100% are categorised as over-exploited. Units with stage of ground-water development over 90% and a significant long-term water-level decline (both pre-monsoon and post-monsoon) are categorised as critical.
The campaign will be launched in two phases. The first phase would include all states in the country and would be operational from July 1 to September 15, 2019. The second phase would focus on states receiving retreating monsoon, and would be operational from October 1 to November 30, 2019.
External Affairs Vinayak Krishnan ([email protected]) Prime Minister visits Kyrgyz Republic and Maldives The Prime Minister, Mr. Narendra Modi, visited Maldives and the Kyrgyz Republic.[40],[41] Key agreements signed with the countries are:
Maldives: India and Maldives signed six agreements. These include agreements related to: (i) health, (ii) hydrography (the measurement of seas and coastal areas), and (iii) capacity building programme for Maldivian civil servants.[42]
Kyrgyz Republic: India and the Kyrgyz Republic signed 15 agreements for cooperation in various areas including: (i) trade and investment, (ii) health, and (iii) information technology
High Level Committee (Chair: Nandan Nilekani) on Deepening of Digital Payments submitted its report to the RBI on May 17, 2019. The Committee was setup with the vision of encouraging digitisation of payments and enhancing financial inclusion through digitisation.
The terms of reference of the Committee included: (i) reviewing the existing status of digital payments in India, (ii) identifying gaps and recommending measures to bridge them, (iii) assessing the current levels of digital payments in financial inclusion and (iv) suggesting a medium-term strategy for deepening of digital payments. Key recommendations of the Committee include:
Targets for digital payments: The Committee highlighted the growing trend of digital payments in the country. The number of digital payments per capita has risen 10 fold from 2.4 in March’14 to 22.4 in March’19. However, India is still behind many other nations in digital payments per capita (96.7 for China and 148.5 for Brazil). In this context, the Committee has set the following targets to be achieved in 3 years: (i) ten-fold increase in per capita digital transactions (from 22.4 currently to 220), (ii) doubling the value of digital transactions as a % of GDP (from 769% currently to 1500%), and (iii) tripling the number of digital payment users (from estimated 10 crore currently to 30 crore).
Specific payment mechanisms: Currently, merchants pay a Merchant Discount Rate (MDR) to banks for accepting payments from customers through debit (or credit) cards. The Committee recommended that the MDR should be subsidised by the government and interchange fee on card payments should be reduced by 15 basis points to incentivise digital payments. It also recommended that RBI setup a committee to review the MDR on a periodic basis. Further, it noted that high value payment systems are currently not available round the clock, which should be addressed.
To improve the acceptance of digital payments, the Committee recommended removal of import duties from point-of-sale (POS) devices and waiving GST on Immediate Payment Service (for transaction charges upto Rs 5000). Further, it recommended that use of high-volume, low-cost usage cards such as the National Common Mobility Card, be permitted at POS devices.
Government payments: The Committee recommended that the government departments must ensure that all pay-outs are through digital means, including payments for goods and services procured, Direct Benefit Transfer, salaries and pensions. A e-wallets can be issued for crediting small value payments, refunds, rebates or loyalty bonus for digital transactions. Further, citizens and businesses should have choices of digital pay instruments for government payments.
Direct Benefit Transfer (DBT): The Committee observed certain challenges with the DBT mechanism. These include lack of returns management i.e. DBT not being successfully credited to beneficiary, processing errors, connectivity and authentication failures in Aadhaar payment. Further, lack of a dedicated grievance redressal mechanism and lack of awareness remain major impediments.
It recommended government agencies should ensure the use of validation services such as Public Financial Management System and National Payments Corporation of India to reduce the incidence of transaction failure because of wrong account / Aadhaar details. Further, government departments and banks must provide a dedicated grievance redressal mechanism, particularly in vernacular language to process connectivity and authentication errors in DBT.
Financial Inclusion: The Committee recommended measures to promote financial inclusion in the country. RBI should develop a Financial Inclusion Index to compare different areas. The index should include parameters such as: (i) fraction of population that has a bank account, (ii) fraction of women owned accounts, and (iii) fraction of accounts which have enabled mobile banking. Regional Rural Banks should be brought under digital payment ecosystem to further inclusion. The Committee also recommended that a digital payment subcommittee should be setup at state level to map financial institutions and identify gaps.
Enabling and incentivising digital payments: The Committee recommended that existing rules need to be modified to recognise valid documents that are digitally signed by the customer to simplify KYC process. Users should be allowed to withdraw small amounts of cash at POS devices at a low, ad valorem cost. GST of amount upto Rs 10,000 can be received in cash currently, which should be brought down. Further, to increase customer confidence, technical and business declines in digital payments must be reduced by 25% each year.
The Central Government has an undertaking known as “ECGC Limited” under the control of Department of Commerce, Ministry of Commerce & Industry, to support the Indian exporters and bankers by providing cost-effective insurance and trade related services against the risk of non-realisation of export proceeds.
Additionally, the Government has set up the National Export Insurance Account (NEIA) operated by ECGC to provide adequate credit insurance cover to protect long and medium term exporters against both, political and commercial risks of the overseas country and the buyer/bank concerned. The NEIA trust also provides covers to banks for Buyer’s Credit transactions, which facilitates foreign buyer to pay for project exports from India.
ECGC provides the following services: Credit insurance schemes (popularly known as ‘Policies’) to exporters to protect them against losses due to non-payment of export dues by overseas buyers due to political and/ or commercial risks on short-term basis. Export Credit Insurance covers for Banks (ECIB) to cover the banks’ lending risks involved in extending ‘pre-shipment’ and ‘post-shipment’ finance to exporters on short-term basis.
ECGC also provides Policy and ECIB covers to promote medium and long term exports (MLT), otherwise called Project exports, that are made on credit period exceeding 360 days.
The Government has recently approved ₹2000 crore towards the capital infusion of ECGC during Financial Year FY 2017-18 to FY 2019-20 to enhance its capital base to augment its underwriting capacity. Additionally, this will support in boosting India's exports to emerging markets like Africa, CIS and Latin American countries.
As export and import of agricultural products depend on several factors such as international and domestic demand & supply situation, international & domestic prices, quality concerns and food security concerns no targets for exports or imports are fixed.
The share of agriculture sector in the country’s total exports, during the last three years, is given below:
State/Union Territory-wise data is not published by the Directorate General of Commercial Intelligence & Statistics (DGCI&S). Overall exports of agricultural products grew by 2.64% in 2016-17 as compared to the previous year. The exports of tea, spices and manufactured tobacco grew by 1.56%, 12.22% and 2.41% respectively while the exports of unmanufactured tobacco declined by 4.65%. Some of the major commodities, which registered a decline in exports were buffalo meat (-4.07%), basmati rice (-7.75%) and cotton (-16.38%). There are several reasons for the decline viz. lower prices and demand in the international market, unfavorable currency movements and international developments like sanctions against Iran and Russia.
No study has been conducted to assess the long term impact of exports on the agricultural and horticultural sector by the Department of Commerce. However, it is expected that exports not only provide better market opportunities to the growers but also generally help in increasing their income.
To promote the agricultural exports, The Government has introduced a comprehensive Agriculture Export Policy with the following vision: “Harness export potential of Indian agriculture, through suitable policy instruments, to make India a global power in agriculture, and raise farmers’ income.”
Inter-alia, the objectives of the Agriculture Export policy are: To diversify our export basket, destinations and boost high value and value added agricultural exports, including focus on perishables. To promote novel, indigenous, organic, ethnic, traditional and non-traditional Agri products exports.
To provide an institutional mechanism for pursuing market access, tackling barriers and dealing with sanitary and phytosanitary issues. To strive to double India’s share in world agri exports by integrating with global value chains.
Enable farmers to get benefit of export opportunities in overseas market. The Government has also brought out a new Central Sector Scheme – ‘Transport and Marketing Assistance for Specified Agriculture Products’ - for providing assistance for the international component of freight, to mitigate the freight disadvantage for the export of agriculture products, and marketing of agricultural products.
The Department of Commerce also has several schemes to promote exports, including exports of agricultural products, viz. Trade Infrastructure for Export Scheme (TIES), Market Access Initiatives (MAI) Scheme, Merchandise Exports from India Scheme (MEIS) etc. In addition, assistance to the exporters of agricultural products is also available under the Export Promotion Schemes of Agricultural & Processed Food Products Export Development Authority (APEDA), Marine Products Export Development Authority (MPEDA), Tobacco Board, Tea Board, Coffee Board, Rubber Board and Spices Board.
About Paramparagat Krishi Vikas Yojana (PKVY): Paramparagat Krishi Vikas Yojana is an elaborated component of Soil Health Management (SHM) of major project National Mission of Sustainable Agriculture (NMSA).
Implementation: Under PKVY Organic farming is promoted through the adoption of the organic village by cluster approach and PGS certification. Fifty or more farmers will form a cluster having 50-acre land to take up the organic farming under the scheme. The produce will be pesticide residue free and will contribute to improving the health of the consumer.
Organic farming and its significance: Organic cultivation doesn’t involve the use of chemical pesticides and fertilizers and thus helps to maintain a harmonious balance among the various complex ecosystems. Also it improves the quality of the soil which further improves the standards of the crops produced there. In the long term, organic farming leads in subsistence of agriculture, bio-diversity conservation and environmental protection. It will also help in building the soil health resulting in sustainable increased crop production.
Kisan Credit Card Scheme: The Kisan Credit Card (KCC) scheme was announced in the Budget speech of 1998-99 to fulfil the financial requirements of the farmers at various stages of farming through institutional credit.
The model scheme was prepared by the National Bank for Agriculture and Rural Development (NABARD) on the recommendation of V Gupta committee.
The KCC scheme is being implemented by the all Co-operative banks, Regional Rural Banks and Public Sector Banks throughout the country. Scheme covers risk of KCC holders against death or permanent disability resulting from accidents.
Objectives: To provide adequate and timely credit support from the banking system to the farmers at the cheap rate of interest. To provide credit at the time of requirement. To support post-harvest expenses. To provide Working capital for maintenance of farm assets and activities allied to agriculture.
Investment credit requirement for agriculture and allied activities (land development, pump sets, plantation, drip irrigation etc.) Consumption requirements of farmers.
Other Salient features of the Scheme: Revolving cash credit facility involving any number of drawals and repayments within the limit. Limit to be fixed on the basis of operational land holding, cropping pattern and scale of finance.
Entire production credit needs for full year plus ancillary activities related to crop production to be considered while fixing limit. Card valid for 5 years subject to annual review. As incentive for good performance, credit limits could be enhanced to take care of increase in costs, change in cropping pattern, etc.
Conversion/reschedulement of loans also permissible in case of damage to crops due to natural calamities. Operations may be through issuing branch (and also PACS in the case of Cooperative Banks) through other designated branches at the discretion of bank. Crop loans disbursed under KCC Scheme for notified crops are covered under Crop Insurance Scheme, to protect the interest of the farmer against loss of crop yield caused by natural calamities, pest attacks etc.
In the States of Kerala, Goa and Tamil Nadu, due to epidemiological transition, fewer deaths are recorded for Communicable, maternal, neonatal and nutritional diseases, thereby raising share of NCDs in total deaths.
Risk factors for NCDs inter alia include ageing, unhealthy diet, lack of physical activity, high blood pressure, , high blood sugar, high cholesterol and overweight.
What are NCDs? Noncommunicable diseases (NCDs), also known as chronic diseases, tend to be of long duration and are the result of a combination of genetic, physiological, environmental and behaviours factors. The main types of NCDs are cardiovascular diseases (like heart attacks and stroke), cancers, chronic respiratory diseases (such as chronic obstructive pulmonary disease and asthma) and diabetes.
What are the socioeconomic impacts of NCDs? NCDs threaten progress towards the 2030 Agenda for Sustainable Development, which includes a target of reducing premature deaths from NCDs by one-third by 2030.
Poverty is closely linked with NCDs. The rapid rise in NCDs is predicted to impede poverty reduction initiatives in low-income countries, particularly by increasing household costs associated with health care. Vulnerable and socially disadvantaged people get sicker and die sooner than people of higher social positions, especially because they are at greater risk of being exposed to harmful products, such as tobacco, or unhealthy dietary practices, and have limited access to health services.
In low-resource settings, health-care costs for NCDs quickly drain household resources. The exorbitant costs of NCDs, including often lengthy and expensive treatment and loss of breadwinners, force millions of people into poverty annually and stifle development.
mKisan: mKisan SMS Portal for farmers enables all Central and State government organizations in agriculture and allied sectors to give information/services/advisories to farmers by SMS in their language, preference of agricultural practices and location.
The National Defense Authorization Act or NDAA for fiscal 2020, that contained the proposal was passed by the US Senate recently.
What it contains? The legislative provision provides for increased US-India defence cooperation in the Indian Ocean in areas of humanitarian assistance, counterterrorism, counter-piracy, and maritime security.
Significance: The US has already recognized India as a “major defence partner” in 2016. This allows India to buy more advanced and sensitive technologies from America on par with that of the closest allies and partners of the US, and ensures enduring cooperation in this sphere. The passage of the NDAA clarifies in greater detail what the closer defence cooperation actually means and entails.
Background: The National Defense Authorization Act (NDAA) is the name for each of a series of United States federal laws specifying the annual budget and expenditures of the U.S. Department of Defense. The first NDAA was passed in 1961.
About North Atlantic Treaty Organization (North Atlantic Alliance): It is an intergovernmental military alliance. Treaty that was signed on 4 April 1949.
Headquarters — Brussels, Belgium. Headquarters of Allied Command Operations — Mons, Belgium. Significance: It constitutes a system of collective defence whereby its independent member states agree to mutual defence in response to an attack by any external party.
Objectives: Political – NATO promotes democratic values and enables members to consult and cooperate on defence and security-related issues to solve problems, build trust and, in the long run, prevent conflict.
Military – NATO is committed to the peaceful resolution of disputes. If diplomatic efforts fail, it has the military power to undertake crisis-management operations. These are carried out under the collective defence clause of NATO’s founding treaty – Article 5 of the Washington Treaty or under a United Nations mandate, alone or in cooperation with other countries and international organisations.
What is BEPS? Base erosion and profit shifting refers to the phenomenon where companies shift their profits to other tax jurisdictions, which usually have lower rates, thereby eroding the tax base in India.
About the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting: The Convention is an outcome of the OECD / G20 BEPS Project to tackle base erosion and profit shifting through tax planning strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations where there is little or no economic activity, resulting in little or no overall corporate tax being paid.
The Convention implements two minimum standards relating to prevention of treaty abuse and dispute resolution through Mutual Agreement Procedure. The Convention will not function in the same way as an Amending Protocol to a single existing treaty, which would directly amend the text of the Covered Tax Agreements. Instead, it will be applied alongside existing tax treaties, modifying their application in order to implement the BEPS measures.
The Convention ensures consistency and certainty in the implementation of the BEPS Project in a multilateral context. The Convention also provides flexibility to exclude a specific tax treaty and to opt out of provisions or parts of provisions through making of reservations. A list of Covered Tax Agreements as well as a list of reservations and options chosen by a country are required to be made at the time of signature or when depositing the instrument of ratification.
Benefits for India: The Multilateral Convention will enable the application of BEPS outcomes through modification of existing tax treaties of India in a swift manner. It is also in India’s interest to ensure that all its treaty partners adopt the BEPS anti-abuse outcomes.
The Convention will enable curbing of revenue loss through treaty abuse and base erosion and profit shifting strategies by ensuring that profits are taxed where substantive economic activities generating the profits are carried out and where value is created.
Background: BEPS is of major significance for developing countries due to their heavy reliance on corporate income tax, particularly from multinational enterprises. Estimates since 2013 conservatively indicate annual losses of anywhere from 4 to10 per cent of global corporate income tax revenues, or $100-$240 billion annually.
Who is the Leader of Opposition? The LOP is leader of the largest party that has not less than one-tenth of the total strength of the house. It is a statutory post defined in the Salaries and Allowances of Leaders of Opposition in Parliament Act, 1977.
Significance of the office: LoP is referred to as the ‘shadow Prime Minister’. She/he is expected to be ready to take over if the government falls. The LoP also plays an important role in bringing cohesiveness and effectiveness to the opposition’s functioning in policy and legislative work. LoP plays a crucial role in bringing bipartisanship and neutrality to the appointments in institutions of accountability and transparency – CVC, CBI, CIC, Lokpal etc.
What reforms are needed? There arises a problem when no party in opposition secures 55 or more seats. In such situations, the numerically largest party in the opposition should have the right to have a leader recognised as leader of the opposition by the speaker.
Besides, the 10% formulation is inconsistent with the law ‘the salary and allowances of leaders of opposition in Parliament Act, 1977’ which only says that the largest opposition party should get the post.
What is it? It is a bilateral air exercise between Indian Air Force and French air force. The latest edition is being held in France.
It is aimed at enhancing interoperability level of French and Indian crews in air defence and ground attack missions.
Popularly known as the ‘Festival of Chariots’, Rath Yatra festival in honour of Puri’s Lord Jagannath is grand celebration.
The festival is dedicated to Lord Jagannath, his sister Goddess Subhadra and elder brother Balabhadra. All the three deities of the temple – Jagannath, Subhadra and Balabhadra – travel in three different chariots during this festival. The chariots are called Nandighosha, Taladhwaja, and Devadalana respectively.
New chariots for all the three deities are constructed every year using wood even if the architect of the chariots remain similar. Four wooden horses are attached to each chariot.
Context: The report, ‘Working on a warmer planet: The impact of heat stress on labour productivity and decent work’ anticipates an increase in “heat stress” resulting from global warming. It projects global productivity losses equivalent to 80 million full-time jobs in 2030, and the projection of 34 million jobs would make India the worst affected.
How global warming impacts jobs? Effects: Excess heat during work is an occupational health risk and restricts workers’ physical functions and capabilities, work capacity and thus, productivity. Loss in jobs: In 2030, 2.2% of total working hours worldwide will be lost because of higher temperatures, a loss equivalent to 80 million full-time jobs. This is equivalent to global economic losses of US$2,400 billion.
Concerns for India: Asia: The region projected to lose the most working hours is southern Asia, at 5% in 2030, corresponding to around 43 million jobs, respectively. A third of the southern Asian countries have already incurred losses greater than 4%. India, which lost 4.3% of working hours in 1995 because of heat stress, is projected to lose 5.8% of its working hours in 2030, which corresponds to 34 million jobs.
Sector- wise Impact: The report projects losses in working hours as 9.04% in agriculture (in shade), 5.29% in manufacturing, 9.04% in construction, and 1.48% in services. Although most of the impact in India will be felt in the agricultural sector, more and more working hours are expected to be lost in the construction sector, where heat stress affects both male and female workers.
Global scenario: Globally, the two sectors projected to be hit worst are agriculture and construction, with agriculture worse affected. The ILO says 940 million people around the world work in the agricultural sector, which is projected to account for 60% of working hours lost due to heat stress by 2030. In construction, an estimated 19% of global working hours is likely to be lost.