Paper 2 3

7/7/2014
Evernote Export
Economic Development
Created: 5/30/2013 1:38 PM
Source: file:///
Inclusive Growth
PPP - Issues & Recommendations
1. Centre - State coordination
1. The Centre and the State have different levels of jurisdiction in different things needed for the success of PPP projects. Land acquisition, power,
water supply is the responsibility of the State Government without which no project can function. Similarly the ability of the State Government to
develop a port can be substantially jeopardized by ineffective decision making regarding security or custom arrangements at the Central level.
2. Obtaining of clearances related to defence, airspace and environment.
2. Enhancing viability of the projects
1. VGF from government.
2. Structuring them to make them bankable.
3. Deepening of the debt market and facilitating long term debt.
3. Selection of land, acquisition thereof and resettlement and rehabilitation of displaced persons
1. Creation of land pools/land banks. The States should identify the lands available for infrastructure development. All such identified land could be
pooled together and offered to prospective project developers. The creation of such land pools would significantly reduce the cost of acquisition and
also lead to faster implementation of the projects.
2. Displaced people must get a meaningful share of the rise in land prices due to development.
4. Capacity building at various levels
1. Proper structuring of PPPs contracts and documentation is essential.
2. Establishment of SPV for project execution.
Inclusive Growth
Need
1. Sustainable growth requires high human capital. It needs skilled, educated, healthy workers.
2. Politically and socially non inclusive growth is not sustainable. LWE, terrorism, communalism, caste wars can be the issues. So inclusive growth flows
directly from the Preamble, DPSP.
3. Moral considerations.
4. Human rights considerations.
Challenges
1.
2.
3.
4.
5.
6.
Political commitment is lacking.

Laws and policies need to be aligned.
Governance challenges.
Crony capitalism.
Physical and social infrastructure needs to be built up.
Inequality.
Amritsar-Delhi-Kolk ata Industrial Corridor (ADKIC) Project

1. Set on of DMIC, the ADKIC will boost industrial development along the Eastern Dedicated Freight Corridor (DFC) that connects Ludhiana in Punjab with
Dankuni near Kolkata.
2. The ADKIC not only has a wider spread but also touches the more densely populated and less developed States like UP, Uttarakhand, Bihar and
Jharkhand.
3. The region accounts for about 40 per cent of the countrys population and has been crying for development.
4. The eastern industrial corridor will also enhance the importance of the inland waterway system by navigating the Ganga.
Q. Manishank ar Aiyyar Report on PRIs
1. Direct transfers to PRIs.
2. Untied grants.
3. Grants to go into capacity building of PRIs.
Q. BRGF
Q. Higher Education Cooperation Initiative Between India and US
Q. Good economics, bad politics etc. explore all combinations.
Investment Models for Funding Infrastructure in 12th Plan
file:///C:/Users/user/Documents/paper%202%203.html
1/97
7/7/2014
Evernote Export
FIPB vs CCEA vs CCI

1. If project worth is < Rs. 1200 crore, FIPB approval is sufficient. If project is worth more, then after FIPB approval, CCEA approval is also needed. CCI is a
high level coordinating body.
SEZ
1. This year in the Public Trade Policy, the minimum land requirement for multi product SEZs has been reduced to 500 ha (from 1000 ha), single product
SEZ to 50 ha and no minimum limit for IT based SEZs.
2. MAT and dividend distribution tax will be levied back on SEZ.
NIMZ vs SEZ
1.
2.
3.
4.
5.
Minimum size is 5000 ha.

No tax benefits in NIMZ except SMEs.
Focus is manufacturing in NIMZ, focus is exports in SEZ.
NIMZ has a separate municipal setup of its own.
NIMZ is executive decision, SEZ has statutory backing.
Q Since 1991 what is the relevance of land reforms / New dimensions of land reforms?
1. Focus of 12th FYP is on tenancy reforms and group farming.
2. Pool land and then lease it out to small and marginal farmer, women.
3. Kerela model: make SHGs of poor farmers and then lease.
Issues Arising
Special Category States

Criteria for Special Category Status
1. The rationale for special status is that certain states, because of inherent features, have a low resource base and cannot mobilize resources for
development.
2. Some of the features required for special status are:
1. Hilly and difficult terrain.
2. Low population density or sizeable share of tribal population.
3. Strategic location along borders.
4. Economic and infrastructural backwardness.
5. Non-viable nature of state finances.
Benefits of Special Category Status
1. PC allocates funds to states through central assistance for state plans. Central assistance can be broadly split into three components:
1. Normal Central Assistance (NCA) ~ 20% of total central plan assistance to states i.e. 5-6% of the total transfers.
2. Additional Central Assistance (ACA).
3. Special Central Assistance.
2. NCA, the main assistance for state plans, is split to favor special category states: the 11 states get 30% of the total assistance while the other states
share the remaining 70%. It is split into 90% grants and 10% loans for special category states, while the ratio between grants and loans is 30:70 for other
states.
3. For allocation among special category states, there are no explicit criteria for distribution and funds are allocated on the basis of the states plan size and
previous plan expenditures. Allocation between non special category states is determined by the Gadgil-Mukherjee formula which gives weight to
population (60%), per capita income (25%), fiscal performance (7.5%) and special problems (7.5%).
1. But what benefits would Bihar actually get if it is made into a special category state? During the Eleventh Plan, under the Gadgil-Mukherjee formula, the
Bihars share in total NPA was 11%, 2nd highest among all non-special category states.
2. Besides the higher assistance to special category states, tax breaks for excise duty as well as income tax exemptions are also available for setting up of
industries within their territories.
2/97
7/7/2014
Evernote Export
3. Even though the number of special category states has increased from only three to 11 between 1969 and now, the kitty of 30% of the central Plan funds
has remained unchanged. As a result, the share of individual states within the category had declined.
4. As per the 2013-14 budget, the total central assistance to states is Rs 1.3 lakh crore, of which the NPA is only Rs 27,636 crore, and about a third of this
money would only go to the special category states.
Raghuram Rajan Committee to Determine Back wardness.Criteria
1. Chidambaram argued for inclusion of HDI indicators in determining whether a state is backward or not.
2. Backward states will also benefit from BRGF.
Employment
Planning
Growth and Development
Effect of Liberalization
Industrial Policy
Investment Models
Mobilization of Resources
FDI Restrictiveness Index (FRI)
1. Despite successive moves to liberalize the FDI regime, India is ranked fourth on FRI compiled by OECD.
2. FRI gauges the restrictiveness of a country's FDI rules by looking at the four main types of restrictions:
1. Foreign equity limitations.
2. Screening or approval mechanism.
3. Restrictions on the employment of foreigners as key personnel.
4. Operational restrictions.
3. A score of 1 indicates a closed economy and 0 indicates openness. FRI for India in 2012 was 0.273 (it was 0.450 in 2006 and 0.297 in 2010) as against
OECD average of 0.081.
4. China is the most restrictive country as it is ranked number one with the score of 0.407 in 2012 indicating that it has more restriction than India.
Government Budgeting
Budgeting Techniques
The Line Item Budget
1. Here individual items are grouped by cost centers or departments.
2. It also shows the comparison between the data for the past budgeting periods and estimated figures for the current period.
3. These line items include detailed ceilings on the amount a unit would spend on salaries, traveling allowances, office expenses, etc. The focus is on
ensuring that the agencies or units do not exceed the ceilings prescribed.
4. A central authority or the Ministry of Finance keeps a watch on the spending of various units to ensure that the ceilings are not violated.
Performance Budgeting
1. Concept
1. A Performance Budget gives an indication of how the funds spent are expected to give outputs and ultimately the outcomes.
2. A performance budget reflects the goals of the organization and spells out performance targets.
3. These targets are sought to be achieved through a strategy(s).
4. Unit costs are associated with the strategy and allocations are accordingly made.
2. Issues in implementation
1. It is difficult to arrive at the unit costs while relating them to the objective in social programmes.
2. Its scope is limited to plan programmes and hence utility severely curtailed.
3. Performance budgets were presented on a supplementary basis. The departments continued the practice of preparing performance budgets
annually in addition to their regular budget. The preparation of performance budget has become a routine affair without any discernible influence on
expenditure management.
4. It is not sufficient to have the performance budget document as a supplementary one, as in that case it will not have any impact whatsoever on the
existing system. For one, the performance budget is being evolved to overcome the deficiencies in the existing budgetary process. The idea of a
supplementary document would inevitably mean the continuation of the existing process.
Zero-based Budgeting (ZBB)
1. Concept
1. Unlike the earlier systems where only incremental changes were made in the allocation, under zero-based budgeting every activity is evaluated
each time a budget is made and only if it is established that the activity is necessary, are funds allocated to it.
2. The basic purpose of ZBB is phasing out of programmes/ activities which do not have relevance anymore.
2. Issues in implementation
1. Because of the efforts involved in preparing a zero-based budget and institutional resistance related to personnel issues, no government ever
implemented a full zero-based budget.
2. Ideally, prioritisation should be done among all items of expenditure whether on-going or new, Non-Plan or Plan. But the system in which Plan and
Non-Plan expenditure are treated differently and assigned varying priorities, ZBB would have to be applied separately to Plan and Non-Plan
3/97
7/7/2014
Evernote Export
expenditures and hence efficacy limited.
Outcome Budget
1. Performance budgets lack of clear estimation of unit costs and inadequate target-setting. Hence there was a need for tracking outcomes and not the
outputs.
2. However, the outcome budget experience shows that in many cases the measurement of outputs and outcomes seems to have been mixed up.
Measuring outcomes is difficult given the fact that they could be influenced by many other extraneous factors.
3. It is also seen that in some cases Departments have merely reproduced the outputs targets as outcomes and, in many other places, general intents of
the programmes are described as outcomes.
4. Outcome Budget cannot be prepared for all Ministries/Departments simply by way of declaration.
Programme Budgeting and Result Oriented Budgets
1. The basic building block of the system was classification of expenditure into programmes. Programmes with common objectives are considered together.
2. The question is how well have the reforms worked in introducing result-orientation into the budgeting process? Not well for the following three reasons:
1. Firstly, even though performance targets are being developed, they are actually kept separate from the budget.
2. When they are included in the budget, often outputs are confused with inputs and outcomes remain unconsidered. Targets / objectives are not
identified effectively.
3. Thirdly, and the most important point is that even when effective targets are provided, the budgets fail to specify who should be accountable for the
results.
3. So programme budgeting by itself may not bring the outcome orientation. Unless there are institutional reforms, like bringing in the agency concept,
where the heads of the agencies are made accountable for delivery of services in an efficient and effective manner, the reform in budgeting process would
be difficult to implement.
Top-down budgeting techniques
1. Bottom up budgeting
1. Budgeting has traditionally operated on a bottom-up principle. This means that all agencies and all ministries send requests for funding to the
finance ministry.
2. These requests greatly exceed what they realistically believe they will get.
3. Budgeting then consists of the Finance Ministry negotiating with these ministries and agencies until some common point is found.
2. Disadvantages of bottom up budgeting
1. It is very time consuming and it is essentially a game; all participants know that the initial requests are not realistic.
2. This process has an inherent bias for increasing expenditures; all new programmes or expansions are financed by new requests; there is no
system for reallocation within spending ministries.
3. Difficult to reflect political priorities in this system as the budget emerges from the bottom at the end of this process.
3. Top down budgeting
1. This has been of great assistance in achieving fiscal consolidation.
2. The starting point is the government making a binding political decision as to the total level of expenditure and then dividing them among individual
spending ministries.
3. This decision is made possible by the medium-term expenditure frameworks which contain baseline expenditure information, i.e. what the budget
would look like if no new policy decisions were made.
4. The political decision is whether to increase expenditures for a high-priority area, for example education, and to reduce expenditures, for example
defence programs.
5. Once this decision is taken, the Finance Ministry largely withdraws from the details of budgetary allocations for each ministry. The Finance
Ministry concerns itself only with the level of aggregate expenditure for each ministry; not the internal allocations.
6. Each minister becomes his own Finance Minister. Each ministry has a total amount and it can freely reallocate that money among its various
programmes.
7. Advantages
1. It serves to hamper creeping increases in expenditures as new policies are funded by reallocations within the ministry.
2. It creates ownership in the respective ministries.
3. Decisions are also better informed as spending ministries are in the best position to judge the relative merits of their programmes.
Budgeting Reforms
Medium-Term Framework Statements
1. They clearly state the governments medium term fiscal objectives in terms of high-level targets such as the level of aggregate revenue, expenditure,
deficit/surplus, and debt.
2. They then operationalize these high-level targets by establishing hard budget constraints for individual ministries and programmes over a number of years.
3. They contain baseline expenditure information, i.e. what the budget would look like if no new policy decisions were made.
4. Utility / need: Budgets are however enacted for a time period of one year, and are notorious for their short-term focus. This short-term time horizon is often
criticised for ineffective expenditure management; decisions on resource allocation are said to be made on an ad hoc basis. Medium-term budget
frameworks bridge this gap.
5. They generally mirror the format of the budget. These are rolling frameworks that are presented with the budget each year-3 is added.
6. These frameworks are not, however, enacted into legislation; they are planning documents that reflect the political commitment to fiscal discipline.
Prudent Economic Assumptions
1. Deviations from the forecast of the key economic assumptions are a key fiscal risk.
2. Sensitivity analysis should be made.
3. A comparison should be made between the economic assumptions used in the budget and what private sector forecasters are applying for the same time
period where practicable.
4. The establishment of an independent body to recommend the economic assumptions to be used in the budget may be considered as well.
4/97
7/7/2014
Evernote Export
Top-Down Budgeting Techniques

1. This has been of great assistance in achieving fiscal consolidation.
2. The starting point is the government making a binding political decision as to the total level of expenditure and then dividing them among individual
spending ministries.
3. This decision is made possible by the medium-term expenditure frameworks which contain baseline expenditure information, i.e. what the budget would
look like if no new policy decisions were made.
4. The political decision is whether to increase expenditures for a high-priority area, for example education, and to reduce expenditures, for example defence
programs.
5. Once this decision is taken, the Finance Ministry largely withdraws from the details of budgetary allocations for each ministry. The Finance Ministry
concerns itself only with the level of aggregate expenditure for each ministry; not the internal allocations.
6. Each minister becomes his own Finance Minister. Each ministry has a total amount and it can freely reallocate that money among its various
programmes.
7. Advantages
1. It serves to hamper creeping increases in expenditures as new policies are funded by reallocations within the ministry.
2. It creates ownership in the respective ministries.
3. Decisions are also better informed as spending ministries are in the best position to judge the relative merits of their programmes.
Relaxing Central Input Controls
1. This is based on the premise that the heads of individual agencies are in the best position to choose the most efficient mix of inputs to carry out the
agencys activities.
2. The end-result is that an agency can produce the same services at less cost, or more services at the same cost. This greatly facilitates fiscal
consolidation.
3. It operates at 3 levels:
1. First, the consolidation of various budget lines into a single appropriation for all operating costs (salaries, travel, supplies, etc.).
2. Second, the decentralisation of the personnel management function. The above may not enough to generate managerial flexibility as various central
management rules inhibit this flexibility. It is in the area of human resource management where most of the central management rules exist.
3. Third, the decentralisation of other common service provisions, notably accommodations (buildings).
An Increased Focus on Results
1. An increased focus on results is a direct quid pro quo for relaxing input controls as described above. Accountability in the public sector has traditionally
been based on compliance with rules and procedures. A new results-based system is needed to hold managers accountable.
2. This is a fundamental change: holding managers accountable for what they do, not how they do it.
3. Difficulties in implementation
1. Results measurement may be much more difficult in some activities than in others. Various social services are the outstanding example.
2. From an accountability point of view, the question arises whether you hold managers responsible for outputs or outcomes. An example highlights
this.
A government may wish to reduce the number of fatalities on highways caused by drunk drivers. This would be the outcome. In order to
achieve this, it may launch a series of advertisements which is the output.
Lets, however, assume that at the same time the number of fatalities went up, not down. The link between the advertisements and this
outcome is very unclear, since many other factors than the advertisements would impact on the outcome.
Alternatively, do we want an accountability regime based on outputs even though the outputs may not be contributing to the desired
outcome?
Finding the right balance between the outputs and outcomes is a difficult choice to implement.
Budget Transparency & Citizen Participation
1. When the governments need to institute large fiscal consolidation programmes, it is often painful and getting the publics understanding of the problems is
necessary. The most effective manner for achieving that was simply to throw open the books and say to the public: Look, things are really as bad as we
told you, were not hiding anything.
2. This is also in consonance with the principles of good governance.
3. The steps involve:
1. The first is the release of budget data - systematic and timely release of all relevant fiscal information.
2. The second element is an effective role for the legislature. It must scrutinize the budget reports and independently review them. It must debate and
influence policy and effectively hold the government to account.
3. The third element is an effective role for civil society, through the media and NGOs. Citizens must be in a position to influence budget policy and
must be in a position to hold the government to account.
Modern Financial Management Practices
1. Accrual based budgeting
1. Drawbacks of Cash Accounting
1. Cash accounting does not provide a full picture of the governments financial position at any given point and the changes that take place over
time as a result of government policy.
2. It fails to reflect accrued liabilities.
3. It is unable to track current assets as well as capital assets. It does not provide information on the assets held by the government at all.
4. It provides room for fiscal opportunism, as tax revenues can be collected in excess during a period followed by high incidence of refunds,
payments can easily be deferred. It takes no note of state guarantees.
2. Issues in Implementation of Accrual Accounting
1. There is a high cost of transition from cash to accrual accounting as it requires higher training, identification and evaluation of assets and
setting up the technological infrastructure.
2. The transition period takes a fairly long time to settle, sometimes even more than a decade.
3. A number of activities associated with the accrual-based accounting system involve high level of subjectivity for example valuations and risk
assessment.
4. Many countries have attempted to move towards accrual accounting but success has not been widespread.
5. Even in countries where it has been implemented, it is not being used in decision making.
6. A gradual approach is thus recommended. Focus could be first on implementing methods to better recognize financial liabilities and assets
and their capital costs.
5/97
7/7/2014
Evernote Export
1. Capital charges
1. Capital has tended to be viewed as a free good in the public sector. This involves putting a cost on the balance sheet.
2. The government decides to levy a charge on the cost of capital tied up in all assets in an agency. For example, if an agency has $10 million in
assets, the government will levy a charge (often equivalent to the long-term government bond rate), of 10%. This means that the agency will have to
pay the finance ministry 1 million dollars annually.
3. When the system is first introduced, the appropriations to all agencies will be increased by the amount of their capital charge, so theres no net
impact on agencies. However, agencies will in future be allowed to dispose of the assets and thus relieving themselves of the capital charge.
4. This saves a lot of government balance sheet.
2. Carry-overs
1. Currently all appropriations lapse at the end of the fiscal year. This creates a great and irrational rush to spend moneys before the end of the fiscal
year.
2. Not only because they would otherwise lose the money this year, but also because future years appropriations would take account of this
underspending as well.
3. Hence the need of carryovers. Only in cases where an agency continuously, year after year, builds up carry-overs does the Ministry of Finance
intervene.
3. Interest-bearing accounts
1. This means that the appropriation of an agency is divided into twelfths (representing each month) and deposited into an agencys account. If an
agency spends at less than this rate, they will receive interest on the difference. If they spend at a faster rate, they will pay interest on the
difference.
2. This makes them much more aware of cash management practices.
Budgetary Process
Preparation of the Budget
1. It follows both the top-down and bottom-up approaches. While guidelines and instructions are issued by the Ministry of Finance and Planning
Commission, the spending Ministries/Departments make requests for budgetary allocations based on their own estimates.
2. The Ministry of Finance issues a Budget Circular which contains the guidelines and instructions in the month of September.
3. This Circular is issued for the guidance of Ministries/Departments in framing the Revised Estimates for the current year and the Budget Estimates for the
ensuing year.
4. The departmental estimates are examined and analyzed by the Financial Adviser and then forwarded to the Budget Division in the Finance Ministry. This
is followed by pre-budget meetings with the Secretary (Expenditure).
5. Once this stage is over, the expenditure ceilings are communicated (which include ceilings on both revenue and capital expenditure). The Departments
then prepare the Statement of Budget Estimates (Final).
Issues in Budgetary Process and Recommendations
1. Emphasis on expenditure targets, not results
1. At present, government departments often measure their performance in relation to the expenditure targets laid down in the budget without
adequate regard to outputs and even less to outcomes.
2. Unrealistic budget estimates
1. Weakness in preparing proper estimates leads to frequent revisions and supplementaries.
2. Despite having such an elaborate and time consuming system of making budgetary estimates, large amounts of unspent money have been
surrendered every year. This indicates lack of efficiency in estimation at the departmental level. It shows that proper forecasting methods are not
used to estimate expenditure. The concerned Ministries/Departments have not made any serious attempts to apply effective corrective measures
as per PAC.
3. The root cause of the problem lies in the prevalent method of formulation of the annual budget by getting details from different organizations and
fitting them into a pre-determined aggregate amount. This method should be given up along with the method of budgeting on the basis of analysis
of trends. Top-down budgeting techniques along with a medium-term expenditure framework should be followed.
4. Budget Estimates and Revised Estimates should be prepared with reference to the measurable commitments made in the Outcome Budget.
5. Ministries/Departments may review each major scheme at regular intervals and apply the result at the time of budget formulation.
3. Delay in Implementation of Projects
1. In many cases, such delays are due to token provisions made on account of poorly conceived projects. Not only this, they also tie down resources
and hence delay other good projects as well.
2. Budgetary provisions should be made only when administrative and technical sanctions have been obtained and a detailed feasibility report and
cost-benefit analysis have been made.
4. Skewed Expenditure Pattern
1. The major portion is spent in the last quarter of the financial year, especially in the last month.
2. A Monthly Expenditure Plan should be worked out for each Demand for Grant. Savings should not be available for automatic carry forward to the
next quarter.
5. Inadequate Adherence to the Multi-year Perspective and Missing Line of Sight between Plan and Budget
1. Ad hoc deviations distort the long-term plan objectives. Major projects and schemes are launched by government which are not provided for in the
plan.
2. Another weakness of the current budget exercise is the absence of a clear link between the plan and the budget. While preparing the budget
estimates, the allocations indicated by the Planning Commission get dispersed over various heads and sub-heads of expenditure. Further, while the
plans are formulated scheme-wise and sector-wise, the budgets are formulated under different heads and sub-heads. Thus a clear line of sight is
not present.
3. Consequently, even the final accounts reflect the expenditure only under various heads. This makes it difficult to link the expenditure under various
heads to the objectives sought to be achieved by the different developmental schemes/projects. Thereby the accounting process loses its potential
as a measuring tool for achievement of objectives.
6. No Correlation between Expenditure and Actual Implementation
1. The expenditure figures do not reflect actual expenditure. At present, the release of funds from any head of account is deemed as an expenditure.
In a large number of cases, especially in CSS, such releases cannot be construed as expenditure because funds lie in the pipeline.
2. The present system of release of funds to project authorities outside the government often leads to parking of funds which is often resorted to in
6/97
7/7/2014
Evernote Export
order to prevent lapsing of funds. This leads to idle funds being maintained outside government accounts and thus portrays an incorrect picture of
government funds besides causing loss of interest to government.
7. Irrational Plan Non-Plan Distinction
1. It has led to ever increasing tendency to start new schemes/projects to the utter neglect of existing ones.
2. The distinction also often leads to the misperception that non-plan expenditure is inherently wasteful and should be avoided.
3. The problem is assuming greater significance with higher priority to social sectors where salary constitutes an important element of the
programme. The embargo imposed on recruitment for nonplan posts have caused serious problems of service delivery in health and education
sectors.
Security and Risks

Created: 5/30/2013 2:11 PM
Source: http://www.thehindu.com/news/national/other-states/court-directs-gram-sabhas-to-take-a-call-on-vedantas-mining-project/article4629659.ece
Disaster Management
Uttarakhand Failure
Violation of Nature as the Cause
1. There is ample scientific evidence that the Himalayan watersheds have witnessed unprecedented deforestation. Vegetative cover slows the speed of falling
rain and prevents soil erosion and gully formation. Besides forests and soil soak water from the rain, release it slowly and prevent water flowing as run-off.
2. There is mounting evidence that global warming is fast catching up with the Himalaya.
3. While it is important to appreciate the aspirations of locals and economic activities, there cannot be a lack of enforcement of land use laws. Such laws were
violated with impunity in Uttarakhand as construction activity came up on the river banks.
4. Hydel activities cause slope weakening and destabilisation. Similarly sand mining and stone industries also weaken the river system.
Role of Ecological Neglect by the State
1. It is not as if the state government wasn't unaware of the looming threat. Government reports had warned of the unchecked dangers of urbanisation and from
hydel projects. The authorities have always treated environment with scant regard.
2. The Centre had declared a stretch of 100 km between Gomukh and Uttarkashi along the Bhagirathi river as an eco-sensitive zone. However, the state
government is opposing the move, saying this would adversely affect the development in the region.
3. The fact is that the dams, barrages and embankments on one hand, magnify the enormity of high floods when they come and on the other, instil a false
sense of security in minds of those who come to occupy the erstwhile k hadar lands that all is well. The truth is the opposite. Only normal and periodic
climatic events have been converted into man-made disasters, with man coming to colonise k hadar land.
Role of Dams
1. Big dams, like the one at Tehri, disturb the highly fragile Himalayan tectonic system.
2. But this time the dam managed to protect big towns like Rishikesh and Haridwar through regulation of the Bhagirathi river waters, most of which were held
back in the 42-km long reservoir. Experts have now recommended a big dam across the Alaknanda river also to further manage the flow of water.
3. Being a hill state, Uttarakhand is ecologically sensitive but its two main sources of income are tourism and hydel energy. The state cannot look away from
these two sources.
4. Construction of hydel dams require rivers to be diverted through tunnels to generate power. The construction of these tunnels unsettles the mountainous
terrain and contributes to a greater quantity of rocks and sediment crashing down.
CAG Report on Uttarak hand's Preparedness
1. It pointed out that the SDMA had remained virtually non-functional.
2. The state had also failed to incorporate disaster prevention into the development planning.
1. No thought was given to the fragile ecosystem of the state in the developmental planning process.
2. Buildings were permitted on floodplains of the rivers.
3. Such unsafe construction is linked to the religious tourism. Why can't we adopt policies of Bhutan where tourism is regulated to bring it in harmony
with the environment?
4. Construction of hydel dams require rivers to be diverted through tunnels to generate power. The construction of these tunnels unsettles the
mountainous terrain and contributes to a greater quantity of rocks and sediment crashing down.
3. Vulnerability assessment at local level and identification of necessary mitigative action had not been done. Buildings were permitted on floodplains of the
rivers.
4. The disaster management plan was in place but its implementation was absolutely poor.
1. The communication system was also inadequate, with the delay in sharing of disaster information.
2. Absence of any guidelines meant the preparedness was almost nil. The disaster struck on June 16 and rescue and relief operations could begin only
on June 24 when the Army was called in.
3. Until then the government had no clue. It had no idea about the magnitude of what had struck the state.
5. Restoration work undertaken under the Calamity Relief Fund were delayed and violated the guidelines.
6. Some warning system had been in place, such as radars and climate prediction.
1. The reports of IMD have always been very imprecise like "heave to very heavy rainfall in some areas in Uttarakhand". No one has any idea of what
7/97
7/7/2014
Evernote Export
heavy to very heavy means.
2. The prediction accuracy and forewarning capabilities of IMD need to be increased. Apart from quantifying the amount of rainfall, spatial distribution
information should also be given.
3. World over such systems are in place and even in our country such systems are in place for cyclones.
National Oil Spill Contingency Plan (NOSDCP)

The idea is to mitigate the impact of all oil spills on the environment by Setting specific standards for oil spill equipment stockpiles
Establishing time frames for oil spill response
Increasing collaboration among partner agencies.
Types of Crises
1. Crises caused by acts of nature. These can further be divided into the following sub-categories:
1. Climatic events: cyclones and storms (associated sea erosion), floods and drought
2. Geological events: earthquakes, tsunamis, landslides and avalanches;
2. Crises caused by environmental degradation and disturbance of the ecological balance;
3. Crises caused by accidents. These, again, can be further classified into: industrial and nuclear mishaps and fire related accidents;
4. Crises caused by biological activities: public health crises, epidemics etc;
5. Crises caused by hostile elements: war, terrorism, extremism, insurgency etc;
6. Crises caused by disruption/failure of major infrastructure facilities including communication systems, large-scale strikes etc; and
7. Crises caused by large crowds getting out of control.
Life Cycle Approach to Crisis Management
1. A crisis does not emerge suddenly; it has a life cycle, which may take days, months or even decades to develop. A crisis, therefore, needs to be examined
in terms of its management cycle. This life cycle of crisis management may be divided broadly in three phases - pre-crisis, during crisis and post crisis.
World Conference on Natural Disaster Reduction, Yokohama, 1994
1.
2.
3.
4.
5.
6.
7.
8.
9.
Risk assessment is an important initial step.

Disaster prevention and preparedness are next important steps and should be included at the planning level itself.
Capacity development is next important step.
Early warning systems should be installed and steps taken for fast and wide warning information dissemination.
Local community involvement is important.
Education and training to the whole community is important.
International sharing of technology is important.
Environmental protection is important and poverty alleviation is imperative.
Needs of developing countries should be kept in mind in disaster management efforts.
Yogyakarta Declaration
1. Hoyogo Framework for Action: This is the agreement reached in 2005 between countries on disaster management. It runs form 2005 to 2015. It was a
roadmap for the government and other players.
2. Yogyakarta declaration includes calls to integrated local knowledge and climate change into disaster management plans, political commitment,
accountability, awareness and education, and to build local capacity.
Disaster Risk Reduction Framework
1. A policy framework has to be drawn up backed by the legal and institutional mechanisms that focuses on risk reduction as the major priority in disaster
management.
2. Assessment of risk including hazard analysis and community vulnerability.
3. Risk Awareness and Preparation of Plans for Risk Mitigation.
4. Implementation of the Plan.
5. Early Warning Systems.
6. Development of systems for processing and sharing of disaster related information.
INDIAS KEY HAZARDS, VULNERABILITIES AND THE CRISIS RESPONSE MECHANISM
1. Almost 85% of the country is vulnerable to single or multiple disasters and about 57% of its area lies in high seismic zones. Approximately 40 million
hectares of the countrys land area is prone to flood, about 8% of the total land mass is vulnerable to cyclone and 68% of the area is susceptible to drought.
2. There is no reason why so much loss happens in India whereas earthquakes of similar measurements in USA or Japan have had relatively little impact.
3. Post monsoon cyclones are usually more intense both in numbers and intensity.
Cyclone Shelters
1. In densely populated coastal areas, where large scale evacuations are not always feasible, public buildings can be used as cyclone shelters.
2. These buildings can be so designed, so as to provide a blank face with a minimum number of apertures in the direction of the prevailing winds. The
shorter side of the building should face the storm, so as to impart least wind resistance.
3. Green belts can be used in front of these buildings to reduce the impact of the storm.
Traditional Knowledge for Disaster Management
1. If tribals in the Andamans could survive the tsunami, it was because their existing warning systems worked well in comparison to our non-existent
modern systems.
2. The fact that traditional houses of wood and stone survived the Uttarkashi earthquake not so long ago while modern buildings collapsed offered a similar
lesson.
3. In the flood-prone rural North-East, one can find houses on bamboo stilts that allow flood waters to flow under them rather than through or over!
8/97
7/7/2014
Evernote Export
Flood Control and Management

1. There should be a master plan for flood control and management for each flood prone basin.
2. Adequate flood-cushion should be provided in water storage projects. In highly flood prone areas, flood control should be given overriding consideration
in reservoir policy even at the cost of sacrificing some irrigation or power benefits.
3. While physical flood protection works like embankments and dykes will continue to be necessary, increased emphasis should be laid on nonstructural measures such as flood forecasting, flood plain zoning and flood proofing.
4. There should be strict regulation of settlements in the flood plain zones along with flood proofing.
Landslides and Avalanches
1. The Himalayas comprise of tectonically unstable younger formations and often the slides are huge, and in most cases, the overburden along with the
underlying lithology is displaced during sliding. In contrast, the Western Ghats are geologically stable and the slides are usually confined to the over
burden without affecting the bedrock beneath.
2. Structural measures:
1. Planting (Avalanche Prevention Forest)
2. Stepped Terraces
3. Avalanche Control Fence
4. Other protection structures
3. Non-structural measures - removing snow deposits on slopes by blasting, predicting avalanches and evacuating people from vulnerable areas.
Industrial Disasters
1. In the pre-Bhopal Gas Tragedy era, industrial safety was governed by legislations like the Factories Act, 1948 and the Explosives Act, 1884. These laws
proved to be inadequate to provide safety to workers as well as to the people living in the surrounding areas. After the Bhopal Gas Tragedy, a new chapter
was inserted in the Factories Act, 1948 dealing with hazardous processes. The Environment Protection Act, 1986 was enacted. More importantly, several
Rules were promulgated under the Act.
Rail Disaster Management
It is an integral part of railway safety. However, earlier the disaster management was confined to reacting to the railway accidents. After the NDMA, 2005 the
Railway ministry has developed an integrated disaster management plan. As per this plan,
1. The railway zones and railway divisions have been made the nodal agencies for planning, mitigation and relief within their zones.
2. The Plan is not focused towards reacting to the accidents only, but it also includes, terrorist attacks, natural disasters affecting the railways, crowd
management during festivals or natural calamities. It heavily relies on modern technology like CCTVs, ACDs, satellite communications, upgraded
signaling systems, self propelled accident relief vans, modern cranes, luggage scanners.
3. It emphasizes in relief during golden hours (first hour of the accident) i.e. reach the spot within 1 hour. Training is done at Bangalore in the disaster
relief operations.
4. The Railway Protection Force is developing a rapid action team to be trained by NSG to respond to the terrorist attacks on railway trains and assets.
5. Railway officials to maintain contact with the general administrative authorities in their areas for prompt relief in case of the disasters.
Creeping Emergencies
1. Disasters can also be classified as slow onset disasters and rapid onset disasters. Earthquakes, cyclones, floods, tsunamis would fall under the
category of rapid onset disasters; climate change (global warming), desertification, soil degradation, and droughts, would fall under the category of slow
onset disasters. Slow onset disasters are also termed as Creeping Emergencies.
Sea Erosion
1. The landward displacement of the shoreline caused by the forces of waves and currents is termed as erosion.
2. The impact of the event is not always seen immediately, but it is equally important when we consider loss of property that it causes. It takes months or
years to note the impact. So, this is generally classified as a long term coastal hazard.
3. Anthropological effects that trigger beach erosion are: construction of artificial structures, mining of beach sand, offshore dredging, or building of dams.
Traditional Disaster Management Architecture in India
The Response Mechanism
1. Field level response
1. The community is the first responder in a disaster. Field level response in rural areas is by the nearest police station and the revenue functionary; in
urban areas the response is by agencies like the civic authorities, the fire brigade and the local police station.
2. At present, panchayats do not have the capacity to react in any effective manner and it is the district administration with the Collector playing a
pivotal role. He has the authority to mobilize the response machinery and has been given financial powers to draw money.
3. All departments including the police, fire services, public works, irrigation etc. work under the leadership of the Collector during a disaster, except in
metropolitan areas where the municipal body plays a major role.
4. The District Collector also enjoys the authority to request for assistance from the Armed Forces if circumstances so demand.
2. Role of state government
1. The basic responsibility to undertake response measures rests with the State Governments.
2. The entire structure of crisis administration in the State Governments has been oriented towards post disaster relief and rehabilitation.
3. Most of the states have Relief Commissioners. The Relief Commissionerate is usually an adjunct of the Revenue Department. In some states, the
Revenue Secretary is also the ex-officio Relief Commissioner.
4. This has the advantage of providing a direct chain of command to the district Collectors and the Tehsildars, but the focus on crisis prevention and
mitigation or even of preparedness is missing.
5. Every state has a Crisis Management Committee under the Chief Secretary, consisting of secretaries of concerned departments, which
reviews crisis situations on a day-to-day basis, coordinates the activities of all departments and provides support to the district administration.
6. At the ministers level, a Cabinet Committee on Natural Calamities under the Chief Minister takes stock of situations and is responsible for all
important policy decisions.
3. Role of Union Government
1. It plays a key supportive role with resources and providing complementary measures such as early warning and co-ordination of efforts of all Union
ministries, departments and organizations.
9/97
7/7/2014
Evernote Export
2. At the apex level, a Cabinet Committee on Natural Calamities reviews the crisis situations.
3. A High Level Committee of Ministers under the chairmanship of Minister of Agriculture deals with the issue of financial support to be provided to
the State Governments.
4. Matters relating to nuclear, biological and chemical emergencies are looked after by the Cabinet Committee on Security.
5. The Cabinet Secretary heads the National Crisis Management Committee. Secretaries of ministries and departments concerned and heads of other
organizations are members, which reviews and monitors crisis situations on a regular basis and gives directions to the Crisis Management Group.
6. The Central Relief Commissioner in the Ministry of Home Affairs is the Chairman of the Crisis Management Group (CMG) consisting of nodal officers
from various concerned ministries. The CMGs functions are to review annual contingency plans formulated by various ministries, measures required
for dealing with a natural disaster, coordinate the activities of the Union Ministries and State Governments. In the event of a disaster, the CMG meets
frequently to review relief operations and extends assistance required by the affected states.
The Finance Mechanism

1. Schemes for financing expenditure on disaster management are governed by the recommendations of the Finance Commission.
2. Under the existing scheme, each state has a Calamity Relief Fund (CRF) administered by the Chief Secretary. The size of the corpus is determined with
reference to the expenditure normally incurred by the state on relief and rehabilitation over the past ten years.
3. In case the funds under CRF are not sufficient, State Governments can seek assistance from the National Calamity Contingency Fund (NCCF) - the
approval for which is granted by the High Level Committee of Ministers.
4. Both these funds, as the names suggest, are meant for relief and rehabilitation and do not cover either mitigation or reconstruction works, which have to
be funded separately.
Evolution of Disaster Management Architecture
Following the Gujarat earthquake, the Government of India took important policy steps for revamping the disaster management system in the country. These
1. Disaster management with reference to rapid onset disasters was moved from the purview of the Ministry of Agriculture to the Ministry of Home Affairs. The
Ministry of Agriculture retains the responsibility for droughts, pest attacks and hailstorms.
2. State Governments were advised to reorganize their Relief & Rehabilitation Department into a separate Disaster Management Department.
3. State Governments were further advised to constitute State Disaster Management Authority under the Chairmanship of State Chief Ministers and the
District Disaster Management Committee under the Chairmanship of District Collectors.
4. National Disaster Response Force to be constituted.
5. A fail-proof disaster communication network to be set up.
6. The National Institute of Disaster Management was set up for training, capacity building, research and documentation.
7. Disaster management to be included in education system at all levels starting from schools.
The Disaster Management Act, 2005
The National Disaster Management Authority (PM Level Body)
1.
2.
3.
4.
5.
6.
7.
To lay down policies on disaster management.

Lay down guidelines to be followed by the states in drawing up the State Plan and the union ministries to draw up their plans.
Approve the National Plan and plans prepared by various union ministries.
Coordinate the implementation of the plans for disaster management.
Recommend provision of funds for the purpose of mitigation.
Provide support to other countries.
Lay down broad policies and guidelines for the functioning of the National Institute of Disaster Management.
The National Executive Committee (Secretary Level Body)

1. Act as the national level coordinating and monitoring body for disaster management.
2. Prepare the National Plan to be approved by the NDMA.
3. Monitor and evaluate the preparedness level, the implementation of the national policy, guidelines laid down by NDMA, national plan, plans of various union
ministries.
4. Provide necessary technical assistance to the states for preparing their disaster management plans and carry out other functions under this Act.
5. Promote general education and organize special training programmes in relation to disaster management.
6. Coordinate response in the event of any disaster. Require any department or agency to make available men or material resources for emergency response.
7. Lay down guidelines for, or give directions to union ministries and states regarding measures to be taken by them in response to any threatening disaster
situation or disaster.
The State Disaster Management Authority (CM Level Body)
1.
2.
3.
4.
5.
Lay down the State disaster management policy.

Lay down guidelines to be followed by the state ministries.
Approve the State Plan and plans prepared by various state ministries.
Coordinate the implementation of the state plan and other state ministries' plans.
Recommend provision of funds for mitigation and preparedness measures.
The State Executive Committee (Chief Secretary Level Body)

1. Lay down guidelines for preparation of plans by the various state ministries and the DDMAs.
2. Monitor the implementation of the national policy, the national plan, the state plan and the plans prepared by various state ministries and the DDMAs. Also
monitor the implementation of guidelines laid down by the SDMA and evaluate the level of preparedness.
3. Provide necessary technical assistance or give advice to DDMAs and state ministries.
4. Coordinate response in the event of any disaster. Give directions to any Department or agency regarding response actions to be taken.
5. Promote general education and community training.
6. Advise the State Government regarding all financial matters in relation to disaster management.
7. Examine the vulnerability of different parts of the state and specify measures to be taken.
8. Examine the construction in any area and if it is of the opinion that the standards for the prevention of disaster have not been followed, may direct the
DDMA to take needed action.
9. Ensure that communication systems are in order and the disaster management drills are carried out periodically.
10/97
7/7/2014
Evernote Export
The District Disaster Management Authority (Collector Level Body)

1. Collector as ex officio Chairperson, elected representative of the local authority as the ex officio co-Chairperson, the Superintendent of Police, Chief Medical
Officer and maximum two other district level officers to be appointed by the State Government, as members.
2. It acts as the district planning, coordinating and implementing body for disaster management and takes all measures according to the guidelines laid down
by the NDMA and the SDMA.
The National Disaster Management Plan (Prepared by NEC and approved by NDMA)
1.
2.
3.
4.
Measures to be taken for the prevention and mitigation.

Measures to be taken for integration of mitigation measures in the development plans.
Measures to be taken for preparedness and capacity building to effectively respond.
Roles and responsibilities of different ministries.
The State Disaster Management Plan (Prepared by SEC and approved by SDMA)
1.
2.
3.
4.
5.
The vulnerability of different parts of the State to different forms of disasters.

The measures to be adopted for prevention and mitigation of disasters.
Measures to be taken for integration of mitigation measures in the development plans.
Measures to be taken for preparedness and capacity building to effectively respond.
The roles and responsibilities of different state ministries.
The District Disaster Management Plan (Prepared by DDMA)

1. Every office of the government having office at district level shall prepare a disaster management plan in accordance with the district plan and submit a copy
of the plan to the DDMA.
2. The areas in the district vulnerable to different forms of disasters.
3. The measures to be taken, for prevention and mitigation of disaster.
4. The capacity-building and preparedness measures to effectively respond.
5. The response plans and procedures, in the event of a disaster, providing for1. Allocation of responsibilities to the departments and the local authorities in the district.
2. Prompt response to disaster and relief.
3. Procurement of essential resources.
4. Establishment of communication links.
5. Dissemination of information to the public.
The National Institute of Disaster Management (NIDM)
1.
2.
3.
4.
It
It
It
It
will
will
will
will
function within the broad policies and guidelines laid down by the NDMA.
be responsible for promoting research in the area of disaster management.
be responsible for documentation of the disasters and their management cases.
be responsible for the development of a national level information base.
The National Disaster Response Force

1. The general superintendence, direction and control of the Force shall vest in the NDMA
The National Disaster Response Fund & The National Disaster Mitigation Fund
1. The response fund will be made available to the NEC and the mitigation fund to the NDMA.
2. Besides, every ministry shall make provisions in its annual budget, for funds for actions set out in its disaster management plans.
Other Salient Features of the Act
1. The Central Government can issue directions to any authority (union or state) to assist in disaster management.
2. Any officer or authority shall have to make available such manpower as requested by NEC, SEC or DDMA.
3. If it appears to the NEC, SEC or DDMA that provisions of any rule regulation etc. need to be made or amended for purposes of prevention and mitigation of
disasters, it may require to do so.
4. The NDMA, the SDMA or a DDMA may recommend to the Government to give direction to any person in control of any media or means of communication
to carry out any warnings or advisories regarding disasters.
5. The NDMA shall prepare an annual report to the Central Government which shall cause it to be laid before Parliament.
6. Actions taken under this law will be immune from court challenges.
India's Disaster Preparedness
11/97
7/7/2014
Evernote Export
12/97
7/7/2014
Evernote Export
13/97
7/7/2014
Evernote Export
14/97
7/7/2014
Evernote Export
Analytical Issues in Disaster Management in India

Constitutional Provision - is there need for a separate entry for Disaster Management in the 3 Lists?
1. Disaster management doesn't figure in any of the 3 lists. So the parliament has the competence to legislate on this subject. However, by practice and
convention the primary responsibility for managing disasters rests with the State Governments
2. The Disaster Management Act, 2005 was enacted by invoking entry 23 namely Social security and social insurance, employment and unemployment in
the Concurrent List even though all aspects of crisis management cannot be said to be covered by this entry.
3. There are already various entries in the three lists, which deal with some aspect or other of disaster management. Public order finds a place in the State
List, as does Public Health. Entries 14 and 17 in the State List deal with Agriculture and Water respectively. Environment and Social Security are included
in the Concurrent List. Atomic energy and Railways are part of the Union List.
4. Due to the cross cutting nature of activities that constitute disaster management and linkages required which involve coordination between the Union, State
and local governments on the one hand and a host of government departments and agencies on the other; setting up of a broadly uniform institutional
framework at all levels is of paramount importance.
5. There is need to ensure congruence and coherence with regard to the division of labor among the agencies at the Union, State and other levels. This could
best be achieved if the subject of Disaster Management is placed in the Concurrent List of the Constitution.
What should a law on crisis management provide?
1. Centralization versus decentralization
1. A totally centralized or totally decentralized mechanism would be ineffective because while the response should be made from the local level, the
level of coordination required necessitates involvement of the central government. It is best if certain functions of disaster management are
centralized while others are decentralized down to the lowest level.
2. Immediate rescue, relief and then rehabilitation should be the responsibility of the level of government closest to the affected population. This
logically has to be the district administration and the local self-governments.
3. The district administration is part of the State Government and the primary responsibility for managing any disaster is with the State Governments.
4. The resources of states being limited they seek and get assistance from the Union Government. This arrangement of bottom-up responsibilities
regarding implementation is appropriate and has worked well in the past and should not be disturbed.
5. On the other hand, disaster management planning requires wider perspective and expertise. Developments in science and technology, specialized
manpower and equipment, repository of best practices, early warning systems, standard capacity building and awareness generation programmes
call for an agency to coordinate efforts at the state and the national levels.
6. Thus, the legislation needs to create agencies at all levels. The responsibility and the authority assigned to each one of these have to be distinct.
National level planning, research, analysis and adoption of best practices, development of standard operating procedures (national level),
development of training and capacity building programmes, administration of early warning systems and formulating policy on disaster management
are best entrusted to a national body. Local planning and the actual work of implementation are better left with State Governments, local
governments and the district administration with support from the Union Governments implementing agencies.
2. Mobilization of resources: The law needs to empower authorities handling disasters to requisition such resources for specified periods and the issue of
compensation should not be a hindrance in crisis management efforts.
3. Information dissemination: Even with good early warning technologies, the human element involved in the transmission process is crucial. Prompt
transmission of information should be made a statutory duty of each concerned functionary and SoPs devised. Responsibilities of citizens should also be
defined in the process.
4. Misutilization of funds: Funds meant for disaster relief often tend to get misused as normal procedures are not followed because of urgency. While
enforcing stringent procurement procedures may become a hurdle in the disaster management effort, the penalty for misutilization of funds meant for
disaster relief should be stringent and could form part of the law itself.
Analysis of the Disaster Management Act, 2005
1. It defines disaster as natural or man made event that causes substantial loss to life, property and environment. The scope of this definition does not cover a
variety of other crisis situations that may or may not culminate in a disaster.
2. It concentrates very comprehensive powers at the national level for dealing with disasters.
1. The NDMA as well as the NEC have been given the role not just of planning, coordinating, monitoring and providing assistance during a disaster but
also executive functions related to implementation of the emergency relief and disaster response.
2. What, in fact, is however needed is further empowerment and delegation to the front-end functionaries. In any crisis situation the field functionaries
and the State Governments being aware of the field situation would be in the best position to provide timely and effective response.
3. International practices also do not normally involve setting up centralized authorities with command and control functions to deal with disasters.
3. The integration of the institutional structure prescribed under the Act with the existing administrative framework of the country may pose several problems.
15/97
7/7/2014
Evernote Export
1. The NDMA and the NEC will also lay down guidelines for the state authorities, coordinate the enforcement and implementation of these policies and
ensure timely response.
2. All these functions traditionally have been performed by State Governments.
4. Cabinet Secretary at the union level is more appropriate authority for the coordination of disaster management efforts rather than the NEC under department
secretary.
Recommendations on the DMA, 2005
1. Disaster Management should continue to be the primary responsibility of the State Governments and the Union Government should play a supportive role.
1. The functions of the NDMA should be: to recommend policies, to lay down guidelines, to promote research, to advise on parameters of
categorization of disasters, documentation and dissemination of knowledge, capacity building, early warning systems, to deploy resources
in support of local/State Governments, and to give recommendations to the government.
2. The task of implementation of mitigation/prevention and response measures may be left to the State Governments and the district and
local authorities with the line ministries of the union playing a supportive role.
3. The role of the local governments should be brought to the forefront for disaster management.
2. The Act should provide categorization of disasters (say, local, district, state or national level). This categorization along with intensity of each type
of disaster will help in determining the level of authority primarily responsible for dealing with the disaster as well as the scale of response.
3. The law should cast a duty on every public functionary, to promptly inform the concerned authority about any crisis.
4. The law should make provisions for stringent punishment for misutilization of funds meant for disaster management.
5. The NEC as stipulated under the Disaster Management Act need not be constituted, and the NCMC should continue to be the apex coordination body. At
the state level, the existing coordination mechanism under the Chief Secretary should continue.
Is There a Case for a Separate Ministry/Department of Disaster/Crisis Management?
1. The functions expected of the ministry were networking and coordination of national resources while the concerned functional ministries would continue to
discharge their responsibilities and functions in accordance with their respective disaster management plans.
2. Given the multi-disciplinary nature of activities in crisis management, creation of a separate ministry is likely to lead to conflict and delays rather than
coordination. For planning, research, capacity building and coordination of national resources; such a coordination mechanism is now available with the
formation of the NDMA. And for the purposes of implementation, a coordination mechanism headed by the Cabinet Secretary would be more effective.
NCMC vs NEC
1. The National Crisis Management Committee (NCMC) headed by the Cabinet Secretary coordinates and guides the work of different departments of
Government of India in times of crisis. The NEC would be duplicating the role of NCMC to a great extent.
2. The NCMC has inherent advantages of ensuring quick decisions and immediate implementation. If parallel bodies are created the possibility of the preexisting and newly formed committees trespassing on each other and creating confusion cannot be ruled out.
NDRF vs Army
1. NDRF would be a highly trained quick response agency to respond to the needs of disaster response. To a large extent, this role has been filled by the
Army.
2. The lessons learnt from the devastating disasters around the world is that extraordinarily severe disasters could overwhelm specialized agencies and that in
such situations the Armed Forces remain the measure of last resort.
3. It is imperative that even after the NDRF becomes fully functional, the enabling role of the Armed Forces in assisting the civil authorities be retained and
the Armed Forces continue to maintain capabilities.
Role of Local Self-Governments
1. Local bodies are closest to the people but too small in their reach and capabilities to lead the response operations on their own. They thus need to play an
important role in crisis management under the overall leadership of the District Administration.
2. State Governments may examine the need to incorporate provisions in the state disaster management law and also the state laws governing local bodies to
provide for a well defined role to the PRIs.
3. In major cities, Municipal Corporations have a large administrative system including departments like engineering, public health and revenue, and
sometimes fire services. These should provide a good response.
Need for Holistic Water Management to Reduce Water Disasters
1. Water related disasters can't be addressed unless larger issues like water management through a National Water Policy are properly addressed.
2. Central Water Commission
1. A major impediment is the segmented policy attention from a number of departments and there are multiple union departments involved with
different aspects of water management. This leads to time-consuming repeated consultations, constant inter-departmental references and meetings
and weak coordination and lack of a holistic approach.
2. So the CWC should be restructured into a statutory autonomous inter-disciplinary Commission, with maximum powers, in order to deal with policy
and reforms, center - state and inter-state issues.
3. Using powers under Entry 56 in the Union List, a Law may be enacted to set up mechanisms for collection of data, managing flow in rivers and release of
water from reservoirs, so as to prevent disasters, with interstate ramifications.
Steps to Improve Education and Awareness in Disaster Management
1. Strengthening of National Institute of Disaster Management.
2. Disaster Management should be introduced as a subject in Management and Public Administration.
3. Professionalisation of disaster management is a desirable objective.
Improving Disaster Management Plans by Better Information and Practices
1. It has been noticed that the district plans are usually not based on proper hazard and vulnerability analysis of the district.
2. Preparing Seismic Micro Maps
1. The seismic zone based categorization of the entire country on 1:1.25 million scale is a good indication of the seismic hazards at a macro level, but
is inadequate for undertaking seismic activities at the city level. This requires advanced micro maps in 1:1000 scale, based on local geological, soil
and ground water surveys.
2. The preparation of such maps was taken up on a pilot basis for the selected cities, but none of the studies has been completed with common
16/97
7/7/2014
Evernote Export
standards and protocols that can be accepted at national level.

3. Use of GIS and GPS: It is also possible to use GIS tools to integrate various spatial data such as topography, hydrology, land use, land cover, settlement
pattern, built up structures etc and non-spatial data such as demography, socio-economic conditions and infrastructure like road, rail network,
communication system, hospital etc. on a common platform. This can be further integrated with GPS for real time monitoring of crisis.
4. Enforcement of Plans
1. Normally, it is understood that plans incorporate only developmental measures such as construction of shelters, construction of embankments etc.
2. But disaster mitigation plans should also incorporate a schedule of enforcement measures and the functionaries who will be held responsible for
these.
3. Such enforcement measures being unpleasant and unpopular are very often not contemplated leave aside acted upon.
4. These measures could include enforcement of building regulations in urban areas, removal of encroachments from natural watercourses or
environmentally fragile areas, and strict enforcement of environmental, safety and public health regulations.
5. Integration of Disaster and Developmental Planning
1. The activities in the disaster management plans should be included in the development plans of the line agencies and local bodies.
2. The supervisory level of each agency should ensure that the annual plan of that agency incorporates the activities listed out in the
disaster management plan.
3. Incorporation of disaster mitigation plans into the development plans should be specially monitored at the five year and annual plan discussions at
State and Planning Commission levels.
6. Environment management should be made an integral part of all plans.
7. National Building Code of India 2005
1.
2.
3.
4.
1.
2.
3.
4.
5.
Its guidelines are seldom used. The main reason for this is ignorance about them and escalation of the costs if they are followed.
A balance has to be struck between safety and cost.
As a pre-requisite, it should be in public domain and freely available on Internet.
Simplified versions should be made available. The BIS should convert the norms (at least for small dwelling units) into commonly understood
principles, which could be followed and enforced even by village panchayats.
The approach of drafting model rules and circulating them to the states for incorporation by the local bodies has not produced the desired results. Adoption
of these model regulations would require periodic monitoring. Targets should be fixed each year and financial incentives should be used.
For retrofitting old buildings, a suitable financial package may be worked out by the state governments along with banks and insurance agencies. Even nonfinancial incentives like relaxation on extent of built up areas could act as an incentive to motivate private owners to take up retrofitting.
Zoning regulations
1. They could be used to prevent settlements in hazard prone areas like the riverbanks or areas near coasts or ecologically sensitive areas. They could
also be used to spread out the population so that impact of any hazard is limited.
2. However, at present zoning regulations exist only in big cities. In small towns and rural areas the concept of zoning regulations is almost nonexistent.
3. Even in bigger cities, they are often not prepared with an intention to mitigate hazards.
4. Another weakness of these zoning regulations is their poor enforcement.
Communications networks, with sufficient redundancies should be established.
Undertaking location specific training programmes for the community should be a part of the disaster management plan right from the PRI level.
Emergency Plan at the District Level

1. Emergency Response Plans should be up-to-date and should lay down the trigger points in unambiguous terms.
2. The district emergency response plan should be prepared in consultation with all concerned. The plan should be known and accepted by all the role
players.
3. SoPs should be developed. Handbooks, checklists, manuals etc should be developed and disseminated.
4. Unity of command should be the underlying principle.
5. Mock drills and capability building efforts must be regularly carried out.
6. It must be remembered that plans are no substitute for sound judgement at the time of crisis.
7. Handling of crisis should be made a parameter for evaluating the performance of officers.
8. Institutions such as civil defense, home guards must be revived and integrated with disaster response at field level.
Gender Issues in Disaster Management
1. More women are affected in disasters they have little say in decision making, are comparatively less literate, have lesser mobility and are dependent on
men folk. This disadvantaged situation obviously gets aggravated in crisis situation. So the special needs and concerns of women need to be kept in mind.
2. The vulnerability analysis should bring out the specific vulnerabilities of women and these should be addressed in any mitigation effort. Disaster mitigation
plans should be prepared, in consultation with womens groups.
3. Rescue and relief operations should focus on the most vulnerable groups - women, children, the elderly and the physically challenged.
4. In the recovery phase, efforts should focus on making women economically independent.
5. Camp managing committees should have adequate number of women representatives.
Epidemics
1. The complex nature of control of epidemics is evident from the fact that in the Constitution of India all the three legislative lists of the Seventh Schedule
enumerate some aspects of the matter as follows: List-I; entry 28 quarantine and entry 81 inter-State quarantine; List-II; entry 6 Public health and
sanitation; List-III; entry 29 prevention of the extension from one State to another of infectious or contagious diseases.
2. The Epidemic Diseases Act, 1897 continues to deal with management of epidemic related diseases. It is an omnibus legislation which essentially
supercedes all laws in force in the event of outbreak or a threatened outbreak of a dangerous epidemic disease and authorizes the Union and State
Governments (when authorized by the Union), to resort to all necessary measures to deal with the emergency. The Act also empowers search of vessels
and other means of transport and detention and segregation of any persons suspected to be suffering from an epidemic disease.
3. The Public Health Emergency Bill
1. It enables the Union or State Governments to declare a particular area as epidemic or bio-terrorism affected.
2. Upon such declaration, action can be initiated which apart from measures like inspection and quarantine etc., also empowers government to prohibit
activities which lead to or are likely to lead to epidemics or bio-terrorism.
4. The manner in which the Disaster Management Act, 2005 defines the term disaster leaves no doubt that an epidemic of extraordinary severity spreading
rapidly is covered by it. The Act also overrides the provision of any other law (Section 72). As such, it is clear that management of epidemics-related crisis
would also fall within the jurisdiction of the NDMA. NDRF needs to be equipped to handle the cases of bio-terrorism.
Civil Defence in Disaster Management
17/97
7/7/2014
Evernote Export
Civil Defence (Amendment) Act, 2010

1. It was amended to cater to the needs of disaster management so as to utilize the Civil Defence volunteers effectively for greater public participation in
disaster management related activities.
2. The CD organisation is raised only in such areas which are considered vulnerable. This is reviewed periodically.
3. CD Setup at national level: Three tier structure as given below has been created to formulate and implement CD policy.
1. Civil Defence Advisory Committee under the Chairmanship of Union Home Minister.
2. Civil Defence Committee under the Chairmanship of Home Secretary.
3. Civil Defence Joint Planning Staff Committee under the Chairmanship of Director General Civil Defence.
4. Civil Defence Setup in the States: The state government appoints a Director of Civil Defence and also may constitute, for any area within the state a
body of a person to be called the Civil Defence Corps.
1. However, often such organizations remain deactivated. Out of 225 towns from 35 states notified as CD towns, currently the CD organisations at only
130 towns have been activated.
5. Civil defence setup at district level: Each town has nucleus of four Permanent Staff along with 400 CD Volunteers for a two lakh population.
1. But current strength is < 50% of the target.
6. CD Training: It is expected that each state will have one CD Training Institute.
Home Guard
1. Role: The role of Home Guards is to serve as an auxiliary to the police in the maintenance of law and order, internal security and help the community in
any kind of emergency.
2. Statutory Mechanisms and Service Condition: They are recruited from a cross section of the population such as doctors, engineers, lawyers, private
sector organisations, college and university students, agricultural and industrial workers, etc. Home Guards are provided free uniform, duty allowances and
awards for gallantry, distinguished and meritorious services. Members of Home Guards with three year service in the organisation are trained to assist
police.
National Cyclone Risk Mitigation Project (NCRMP)ox 4.2: National Cyclone Risk Mitigation Project
Aim: The scheme aims to upgrade cyclone forecasting, tracking and warning systems, build capacity in multi-hazard risk management and to construct major
infrastructures including multi-purpose cyclone shelters and embankments.
Execution Authority: The National Disaster Management Authority (NDMA) has been designated the implementing agency. The scheme is regularly monitored by NDMA
and MHA.
Principal Components: The major components under the scheme are as follows;
Community mobilisation and training,
Cyclone Risk Mitigation Infrastructure (construction of cyclone shelters, roads/missing links and construction/repair of Saline Embankments etc.),
Technical assistance for capacity building on Disaster Risk Management (risk assessment, damage and need assessment),
Capacity Building and knowledge creation along with project management and implementation support.
Security Challenges - Role of Media

Security Challenges - Role of Social Media
Mumbai Police's Social Media Laboratory
1. In December 2012, as television sets beamed images of outrage from the streets of Delhi, one could see that the crowd was young, the emotions displayed
were "real", and, most importantly, the police couldn't control the crowd. The crowd had first gathered on the social media. They came to the streets much
later.
2. The youth of the country are not reading the papers or watching the panel discussions on television. They are on the Internetreading, forming opinions,
tweeting, sharing. A tweet is open to the whole world.
3. Special Branch officers trawl through social media sites, looking for hints of trouble. An officer begins with surfing for important news feeds and coding the
reactions into positive, negative and neutral. On days the intelligence officers fear that a particular subject that is trending on a social media site could lead
to public tension, the tweets are saved and revisited to track the number of times these have traveled and places where the information has reached. Data
mining techniques are used and concern is just with numbers.
4. Apart from traditional intelligence briefs, a new file now reaches the table of the Police Commissioner, revealing the day's top five trends on social media.
On crucial days, the file is updated every two hours.
5. This does not intrude upon people's privacy. Activities include "befriending" rogue elements through social networks and routinely looking for those who
boast online after an episode. Tools like geotagging are used to understand the geographical location of online troublemakers.
Security Challenges - Role of Communication Networks
PRISM
1. NSA has obtained direct access to the systems of Google, Facebook, Apple and other U.S. internet giants. The NSA access is part a programme called
PRISM, which allows officials to collect material including search history, the content of emails, file transfers and live chats. Unlike the collection of those
call records, this surveillance can include the content of communications and not just the metadata.
2. The NSA access was enabled by a US surveillance law which allows for the targeting of any customers of participating firms who live outside the US, or
those Americans whose communications include people outside the US. The law indemnifies internet companies against any actions arising as a result of
cooperating with authorities requests.
3. The PRISM programme allows the NSA to obtain targeted communications without having to request them from the service providers and without having to
obtain individual court orders.
4. US has a home-field advantage due to housing much of the internets architecture.
5. Iran was where the highest amount of data was gathered and India was fifth in the leaked list.
6. Metadata is enough to construct behavioral and interest patterns among internet users, so claims that the metadata does not carry much informational
value are spurious. Unlike in the telephone era, meta-data in the Internet age makes it possible to construct a detailed profile of a person, including not
only information on their network of contacts and details on the length of their conversations or their locations during those conversations, but also, for
example, their sexual orientation, medical history or information that might be relevant to insurance claims
7. The claims that the programme has been used only for surveillance of foreign subjects makes a mockery of the trust shown by consumers across the world
who sign up for services offered by the internet companies (which claim to operate on the basis of elaborate privacy policies) and shows scant regard for the
sovereignty of foreign nations.
18/97
7/7/2014
Evernote Export
Central Monitoring System (CMS)

1. It is an Indian government move to implement blanket eavesdropping of online activities, telephone calls and text messages. The Central Monitoring
System is a so-called single window allowing Indian state bodies to monitor communications.
2. In April 2013, the India began rolling out the CMS which will enable the government to monitor all phone and the internet communications. The CMS will
facilitate direct monitoring of phone calls, text messages, and the internet use by government agencies, bypassing service providers.
3. It draws its legislative backing from the IT (Amendment) Act, 2008 which allows the government to snoop any information in the interest of "sovereignty or
integrity of India, defence of India, security of the state, friendly relations with foreign states, or public order or for preventing incitement to the commission
of any cognizable offence or for investigation of any offence.
National Cyber Coordination Centre (NCCC)
1. It would carry out real-time assessment of cyber security threats and generate actionable reports for proactive actions by law enforcement agencies.
This will give law enforcement agencies direct access to all Internet accounts.
Principles Guiding Surveillance in a Democracy

1. Surveillance should be targeted as narrowly as possible and only carried out if it is both necessary and proportionate to the crime under investigation.
2. The surveillance regime should be transparent. This does not mean that every order should be made public the moment it is issued. However, it does
mean that there should be basic clarity, no arbitrariness and that decisions are made public as soon as circumstances allow, so that they can be subject
to public scrutiny.
3. An appropriate system of checks and balances is in place to avoid misuse of surveillance powers. A strong privacy bill is not in place. In addition,
intelligence agencies in India are not under parliamentary oversight.
International Internet Governance

Current Governing Structure
1. Currently it is done by a US NGO called ICANN. The 2 main resources of internet control are root zone servers and DNS servers. ICANN controls both and
is governed by US law.
2. All important databases and servers are in USA.
3. All nations use the same internet but its service is monopolized by USA only.
4. Barriers to entry and exit in using the internet are very low. Language is no barrier.
India's Proposal
1. India has proposed creation of a UN Committee on Internet Related Policies (CIRP) accountable to the General Assembly to govern internet.
Weak nesses in Current Governing Structure
1. Issues of unilateral control and accountability
1. Unilateral control of the root zone systems and lack of accountability of root zone operators.
2. Inconsistent application of privacy and data-protection rights and freedom of expression.
3. Lack of multilateral mechanisms.
2. Issues of intellectual property
1. Concerns over allocation policies for IP addresses and domain names.
2. Confusion about application of intellectual property rights in cyberspace.
3. Developing countries
1. Substantially higher connectivity costs in developing countries.
2. Insufficient capacity building efforts in such countries.
3. Insufficient progress towards multilingualism.
4. Consumer rights
1. Absence of global standards for consumer rights.
Indian Interests
19/97
7/7/2014
Evernote Export
1. India is asked to ratify the Budapest Convention on Cybercrime, in the negotiation of which India played no part, in order for us to be eligible to be qualified
as a data-secure country.
2. Warning that Indian IT companies are heavily dependent on global internet majors and that they will suffer by Indias championing of the cause of
democratisation of internet governance. However this fear is misleading for the following reasons:
1. First, there has been no evidence of any such impact.
2. Second, independent of Indias proposal, Indian IT companies have more or less reached the maximum of the current models of their growth.
3. Third, we need next generation of googles and facebooks from India which cannot come under the present architecture.
International Telecommunications Union (ITU) Conference in Dubai
1. It has been called to decide on internet governance issues. US doesn't want to give it any extra authority.
2. Another issue is whether the telecom companies (the ISPs) should be able to charge some users differentially (so as to get a share of the huge profits
made by leading web firms). If they don't pay up, their access can be slowed down.
Security Challenges - Cyber Security Basics

Role of the IT Act in Cyber Security
Weak nesses of the IT Act
1. Most of the cyber crimes have been made bailable offences which make the law weak.
2. The implementation of the Act is feeble in tier-two cities as awareness of the law by enforcement agencies remains a big challenge
3. Controversies surrounding Section 66A.
Strengthening the IT Act
1. The 2008 amendments reduced the quantum of punishment for a majority of cyber crimes. This needs to be rectified. More cyber crimes
need to be made non-bailable offences.
2. Cyber war needs to be made an offence under the Act.
3. The Act does not cover a majority of crimes committed through mobiles. This needs to be rectified.
4. The Act should have a comprehensive data protection regime defined in it.
5. The Act should have a comprehensive privacy regime defined in it.
6. Section 66A should be amended to bring it in consonance with the reasonable restrictions mentioned in the Constitution.
IT Guidelines, 2011
1. IT (Amendment) Act provides immunity to intermediaries for the content they provide because it recognizes that they don't have
editorial power over it. However such an immunity is subject to due diligence and observing government guidelines.
Intermediaries are ISPs, search engines, DNS providers, facebook, twitter etc.
2. As per new guidelines, once the intermediary has knowledge that a content it hosts violates the guidelines it has to remove it
within 36 hours. The aggrieved person will not be heard and this gives the power of a court to the ISP.
3. The guidelines have ambiguous terms like "grossly harmful" and "blasphemous" to include acts of violation.
20/97
7/7/2014
Evernote Export
IT Act Section 66A

1. It provides for imprisonment and a fine, for any person who sends information that is offensive, has a menacing character or
causes annoyance, inconvenience, insults or promotes hatred or ill-will.
2. Critics argue this Section is beyond the scope of reasonable restrictions on the exercise of free speech, provided under Article 19(2).
3. Another criticism is that it criminalises conduct, in excess of what constitutes an offence under the Indian Penal Code. It's argued that a verbal
insult or annoyance is not an offence, then why should the same thing, if done using an electronic medium, be deemed a crime?
4. Actions such as spreading blasphemous content is not a crime in print media. Then why internet?
National Cyber Security Policy, 2013

Salient Features
1.
2.
3.
4.
5.
6.
7.
It ropes in the private sector and envisages an investment of $1 billion from it. Their help will be sought in research and training of manpower.
It will also lay grounds for international cooperation with countries such as the US and Israel.
It clarifies the role of various government agencies engaged in cyber security. CERT-In will function as an umbrella organization.
The policy proposes an agency and a contingency plan to handle cyber attacks on vital installations and critical infrastructure.
It provides for government monitoring of internet communications.
It calls to promote awareness, information sharing and capacity building.
Cyber security policy 2013 sets up National Critical Information Infrastructure Protection Agency.
Weaknesses in India's Cyber Security Architecture

1. Lack of Human Resources
1. India's trained manpower involved in cyber security is a minuscule 500 compared to over 1 lakh in countries such as China and USA.
2. The biggest reason for this is non involvement of private sector in the government's cyber security architecture.
3. The National Cyber Security Policy, 2013 aims to increase private sector participation and thus address this.
4. Special courses need to be included in the university curriculum as well.
Security Challenges - Money Laundering

Money Laundering vs Terror Funding
1. 2 features distinguish money laundering from terror funding. These are:
1. In money laundering, the activity begins with the generation of proceeds from unlawful activities and ends with conversion into legal assets. On the
other hand, terror funding could be from legal or illegal funds and it culminates when it reaches the perpetrators of a terrorist act. Even if it involves
money laundering in between, the money trail has to continue to its final destination. This widens the scope of investigation in cases involving
terrorist finance.
2. In the case of money laundering, even if the proceeds of unlawful activities get laundered, enforcement authorities could undo the effect on the
basis of post-facto investigation. In case of terrorist finance, once the finance chain is completed and an act of terrorism has taken place, post facto
investigation is limited; loss of life and damage to property and public confidence is already done.
2. It follows from the above that the law enforcement and investigation regime has to be wider in scope while dealing with terrorist finance as compared to
money laundering operations. Further, in terror funding, the emphasis has to be more on obstructing such activities while in progress.
Prevention of Money-Laundering (Amendment) Bill, 2011
1. It links the provisions of Indian law with the laws of foreign countries and provides for harsher punishment.
2. It expands the definition of offence under money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime.
3. It provides for attachment and confiscation of property for a period not exceeding 180 days if the authority has reason to believe that the offense of money
laundering has taken place.
4. It proposes to confer powers upon the directors of financial intermediaries to call for records of transactions or any additional information.
5. It seeks to make the financial intermediary, its designated directors and employees responsible for omissions or commissions in relation to the reporting
obligations.
6. In the proceedings relating to money laundering, the funds shall be presumed to be involved in the offence, unless proven otherwise.
7. It provides for appeal against the orders of the Appellate Tribunal directly to the Supreme Court.
Security - Role of External States and Non State Actors
Emerging Threats
1. Global cooperation amongst terrorist networks
1. Terrorist networks have taken advantage of the communications revolution to develop transnational links, making terrorism a global threat.
2. Al Quaeda is a global terror network which is a loose federation of terror-cells spread across the world but operating autonomously with very little
operational linkages among them other than adherence to a particular form of extremist ideology.
3. Another feature is the ability of many terrorist outfits to cooperate with each other and build operational links in the form of supply of arms, logistical
and even operational support without necessarily sharing ideological bonds.
4. Such networks are also able to obtain support from organized crime outfits to further their destructive objective.
2. The existence of a large migrant population and porous borders in an increasingly multi-cultural world has increased sleeper cells.
21/97
7/7/2014
3.
4.
5.
6.
Evernote Export
Terrorists are using money laundering and banking networks for movement of money across borders fund their activities easily.
Piracy threat from non state actors.
Tribal chiefs in Pakistan and Afghanistan posing a threat.
Crime syndicates like Dawood also pose a threat.
United Jehad Council

1. It is an umbrella organisation of 14 militant groups led by the Hizbul Mujahideen along with the Lashkar-e-Tayyaba and the Jaish-e-Mohammed.
Strategy to Counter Terrorism
1. Socio-economic development: Much of the discourse has been based on the premise that security can be achieved by ensuring protection of life and
property for all. However, it needs to be understood that socio-economic development has to go hand-in hand. So eradication of poverty is essential for
tackling terrorism. Vulnerable sections should not fall prey to the propaganda of terrorists.
2. Political consensus: Political parties must arrive at a national consensus on the need for the broad contours of the anti-terror strategy. Parties should
rise above their sectarian and petty electoral compulsions.
3. Respect for rule of law: Governmental agencies must not be allowed to transgress law even in dealing with critical situations since it only creates more ill
will.
4. Countering the subversive activities of terrorists: The emphasis should be on civil as opposed to military measures to counter terrorism and insurgency.
Psychological warfare or management of information services and the media, in conjunction with the intelligence wing of the police, can play an important
role in achieving this objective.
5. Providing the appropriate legal framework: Terrorism is an extraordinary crime. The ordinary laws of the land may not be adequate to book a terrorist. This
may require special laws and effective enforcement mechanisms, but with sufficient safeguards to prevent its misuse.
6. Building capacity: The capacity building exercise should extend to the intelligence gathering machinery, security agencies, civil administration and the
society at large.
7. Proactive approach: Any form of extremism with faith in a dogma ending in violence has the potential of escalating from hate campaign, violent hooliganism
and murders of perceived enemies to terrorist activities.
Definition
1. While the laws of other countries speak of the intention behind the terrorist act being for the purpose of advancing a political, religious or ideological cause,
the Indian laws have avoided any such intention or purpose being incorporated to define or describe a terrorist act.
Balancing Counter-Terrorism Efforts and Human Rights
1. The conflict stems from entrusting the law-enforcement agencies with extraordinary powers to meet an extraordinary situation.
2. The irony is that the first and foremost impact of such measures is felt by law-abiding citizens on account of inroads they make into individual liberties.
3. But human rights violation cannot be tolerated because such a violation by security forces reduces the public support for the state and leads to more
terrorism.
Role of Civil Society in Combatting Terrorism
1. NGOs have been instrumental highlighting the human rights violations by the security forces. But this should not be seen as adversary because rights
violations by security forces cannot be allowed and will only fuel terrorism in the first place.
2. Given the proximity of these groups to the grassroots, they could also be used in providing local intelligence, fostering social inclusion (to undercut the
roots of terrorism), act as interlocutors, spreading awareness of the basic precautions to be taken and being the first responders in any crisis.
Role of Media in Combatting Terrorism
1. Misuse of media by terrorists
1. Terrorists want to use media to spread their propaganda. Terrorists thrive on publicity. The media does not intend to promote terrorism, but it can be
exploited by the terrorists as the news coverage may serve the expectations of the terrorists.
2. Government wants the media to depend on the official version. In fact, when it comes to acts of terrorism, both the media and the government have a
common interest. Therefore government should work towards harnessing the power of the media as a part of its strategy to defeat terrorism.
3. Induction of media professionals from outside and imparting of media education should should be encouraged through the governmental apparatus.
2. Reporting without verification of facts.
3. Reporting in a manner which hampers counter terrorist operations.
National Counter Terrorism Centre (NCTC)
Provisions
1. Its aim will be to collect, analyze and disseminate intelligence data, coordinate between various national and state counter terrorism bodies, to plan and
carry out counter terrorist operations. It can search, seize property, arrest, demand information from any other agency while carrying out its tasks. The legal
basis for its powers is UAPA provision where the central government can permit an officer to make arrest etc. if he has got a "reason to believe" that a
person committed an unlawful activity.
New Consensus
1. DGPs of states to be on NCTC board.
2. Arrest / search / seizure to be done by state police only except in exceptional circumstances with approval of director. Thus effectively, the operations part
has been taken out of NCTC.
3. NCTC will not be located under IB.
Advantages
1. Currently India has RAW, IB, NTRO, Defence Research Agency and Aviation Research Centre etc. working on terrorism. There is no coordination between
them.
2. NCTC is unavoidable because, at present, the Union Government cannot deploy its military and para-military forces suo motu to deal with internal
security problems in the States and often the States are unwilling to accept these Central forces due to dubious political compulsions.
3. State police forces are not professional and lack capabilities to deal with terror. State forces are also used to serve political ends. Unfortunately, the record
of the Union Government is equally questionable.
22/97
7/7/2014
Evernote Export
Limitations
1. Unlike the American NCTC which deals only with planning and integration of intelligence without any operational involvement, the Indian agency will have not
only intelligence functions but also powers to conduct operations. It is this concentration of powers that has had the states objecting to the NCTC .
2. Current agencies are not willing to submit their autonomy. Different agencies also report to different ministries which are not willing to part with them.
3. NCTC is also an arm of IB which doesn't have arrest / search powers right now. But NCTC has been given such powers.
1. Being an IB wing, there is a likelihood of these powers being misused for political gains. Also with such powers, IB would be busy defending its
arrests in courts and this would compromise its efficacy.
2. NCTC would also get embroiled in IBs running battle with the Research and Analysis Wing (R&AW), which is responsible for external intelligence.
Terrorism has both international and national aspects; hence, the NCTC must be separated from the IB to maintain equidistance from the IB and the
R&AW.
4. Instead of NCTC, the law and order machinery in the States should be fully assisted by the Centre with equipment, technology and training. This would be
more relevant to meeting the threat since they have local knowledge of the terrain, language and culture.
5. Inadequate consultations with the states and a top-heavy attitude of the central government is what brought about its downfall. It tried to put it under IB,
outside parliamentary oversight. It also was trying to create NCTC via an executive order and not a legislation.
Multi Agency Centre
1. Its the nodal centre in IB for all intelligence activities related to terrorism. It collects, analyses and then disseminates such information to all parties
including state administrations. Subsidiaries of MAC (S-MACs) are established in every state capital.
2. It was setup on the recommendations of the GoM after the Kargil War (same GoM also suggested NatGrid and National Memory Bank).
NatGrid
1. NatGrid
links
databases
from
21
departments
and
ministries
like
registration
of records, bank transactions, insurance, tax, driver license, internet and phone logs etc. This way security agencies can have virtually all information about
any person in India.
2. This project was put on hold due to privacy issues but with CCS approval in place, it would be established by 2014.
National Investigation Agency (NIA)
1. It is the agency setup after the Mumbai terror attacks to probe and investigate forensics of terror attacks without taking state permission.
2. Apart
from terror strikes, it is empowered to investigate hijacking, attack on nuclear installation, weapon of mass destruction attacks, organized crime, human traf
ficking etc.
3. The staff would be derived from existing local staff on permanent deputation.
4. But so far it has played second fiddle to local police forces in terror case investigations. It has never directly investigated a case, it gets cases only by
referral from state police and then too it assists only in an informal way. NIA is suffering from massive staff shortage and hence is unable to discharge its
duties properly.
Issues Surrounding an Anti Terrorist Legislation
Need for a Comprehensive Anti Terrorist Legislation
1. Law Commission of India had recommended in 2000 a separate legislation to deal with the menace of terrorism. The draft bill as recommended by the Law
Commission of India included provisions such as definition of terrorist acts, enhanced punishment for such acts, possession of certain unauthorized arms,
special powers of investigating officers regarding seizure and attachment of property representing proceeds of terrorism, constitution of special courts,
protection of witnesses, confessions made to police officers to be taken into consideration, enhanced police custody, constitution of review committees,
protection of action taken in good faith.
2. The IPC was not designed to fight or to check organised crime of the nature we are faced with now. It is difficult to get any witnesses because people are
afraid of their own safety and safety of their families. It is well known that during the worst days in Punjab, even the judges and prosecutors were gripped
with such fear and terror that they were not prepared to try or prosecute the cases against the terrorists. There is enormous delay in going on with the trials
against the terrorists.
3. In such a situation, insisting upon independent evidence or applying the normal peace-time standards of criminal prosecution, may be impracticable. It is
necessary to have a special law to deal with a special situation.
4. It is one thing to say that we must create and provide internal structures and safeguards against possible abuse and misuse of the Act and altogether a
different thing to say that because the law is liable to be misused, we should not have such an Act at all. The Supreme Court has repeatedly held that mere
possibility of abuse cannot be a ground for denying the vesting of powers or for declaring a statute unconstitutional.
Which is a Better Place for the Anti Terror Law - UAPA or National Security Act, 1980?
1. The UAPA deals primarily with the prevention of certain unlawful activities of individuals and associations, whereas the National Security Act deals with
prevention of those activities which are prejudicial to national security and also contains provisions for preventive detention which do not find place in normal
laws. Hence the National Security Act is a more appropriate place.
Bail Provisions
1. Pro-bail lobbies have argued that even in the most heinous cases, the general position is bail but not jail, which should also be the case in terrorism
related matters. POTA had the stipulation that the court has to be satisfied that the accused has not committed any offence before granting the bail. One
of the main reasons cited for the repeal of POTA was the prolonged periods of detention as the accused were not able to get bail.
2. Investigation agencies have put forward the argument that persons accused of terrorism are not ordinary criminals and witnesses are afraid to depose
against such persons. Therefore gathering evidence against them is difficult and time consuming, and if such persons are let out on bail they are bound to
adversely influence the investigation.
3. A pragmatic approach would be to classify the cases on the basis of the gravity of the involvement of the undertrial, nature of case against him and the
period already served in jail.
Confession before a Police Officer
1. All confessions made to a police officer are inadmissible in a court of law.
2. Law Commission recommended that confessions made before the police could be admissible in case of grave offences like terrorism. The inadmissibility of
23/97
7/7/2014
3.
4.
5.
6.
Evernote Export
evidence of a confession made to a police officer remains a weak link, the logic being that given the widespread reluctance of witnesses to tender evidence
in terrorist cases, this will remain a major handicap for the prosecution.
Those opposing the admissibility of confessions before the police have argued that if an accused is willing to make a voluntary confession, then he could
easily be produced before a Magistrate rather than being produced before a senior police officer. It is also argued that police may resort to coercive methods
in order to extract confessions.
Confessions made before the police should be admissible. All such statements should be video-recorded and the tapes produced before the court. The
witness/accused should be warned on video tape that any statement he makes is liable to be used against him in a court of law, and he is entitled to the
presence of his lawyer or a family member while making such a statement.
The accused should be produced before a magistrate immediately thereafter, who shall confirm by examining the accused whether the confession was
obtained voluntarily or under duress.
Such statements can be made admissible if proper police reforms are carried out and an independent complaints authority against the police is setup.
Presumptions under the Law

1. According to one school of thought, shifting the burden of proof to the accused is violative of the basic principles of jurisprudence. Another viewpoint is that
there are certain facts which are only within the knowledge of the accused and establishing such facts by the prosecution becomes difficult and the benefit
generally passes on to the accused.
2. But because of the nature of the crime and the potential it has to threaten the security and integrity of the country, it is necessary that the person who has
indulged in the terrorist act is not able to make use of the protection which is provided to an accused person under the normal laws.
Witness Protection
1. Implementing a US type witness protection program in India may not be feasible because an individual Indians identity is so inextricably linked with his
social milieu and place of origin that it may be practically impossible to extricate him from the same and relocate him with a fresh identity somewhere else
in the country. It is also extremely costly. It can be made available if the witness himself requests for it.
2. Measures such as holding of proceedings in camera, empowering the Court to take appropriate measures for keeping the identity of the witness secret,
disallowing the accused to see and cross examine the witness (the court can itself cross examine the witness on the request of the accused instead of
allowing him to directly do so) can still go a long way in witness protection.
Unlawful Activities (Prevention) (Amendment) Bill, 2011
1. This Bill has been brought to comply with the requirements of India signing FATF (against money laundering and terrorism finance activities) and to
strengthen anti terror provisions.
2. Definition of terror
1. It includes terrorist acts to include counterfeit currency, demanding bombs and other weapons, violent acts with the intention of compelling the
government.
3. Terror property
1. It also clarifies that the proceeds of terrorism include property intended to be used for terrorism (even if derived from legitimate sources) and by an
individual terrorist as well (earlier it had only gangs and organizations).
2. Under the Bill, raising funds likely to be used (in full or in part) to commit a terrorist act or for the benefit of terrorists shall be punishable irrespective
of whether the funds have been raised from legitimate or illegitimate sources.
3. It also states that participating, organising or directing fund raising activities shall constitute an offence.
4. The property of the accused can be attached merely on suspicion. If the person "dies" at any stage before trial is over (including custodial death), the
property will be permanently confiscated.
4. Scope of legislation
1. The earlier Act was applicable against individuals and group associations, the Bill is applicable against NGOs, HUF, companies also.
5. The sweep of the Bill criminalizes association with suspected organization. In case of association, the burden of proof for showing "innocence / lack of
knowledge" falls on the accused. He can be arrested for 180 days merely on suspicion. To seek extension of the arrest period, the police merely needs to
show that investigation is proceeding as against showing evidence against the accused.
6. It extends the period of banning organizations from 2 to 5 years before a judicial review.
1. Even those organizations working lawfully for human rights can be labeled as Naxalites by the government and banned for 5 years.
Security Challenges - Management in Border Areas
1. International border is a line which separates two sovereign nations and both the nations have agreed that this is the line separating them. Maps are
exchanged and features are marked on the ground.
2. The rule is that no armed forces shall be posted on the international borders. So the police forces from either sides are posted. Police forces come under
MIA and thus maintaining the tranquility along the international borders is the sole responsibility of MIA and not MoD.
Complexity in Indian Borders

1. China: We don't have an international border but a LAC. The central zone has been recognized by China but not ratified by them.
1. LAC
Johnson line is the line which was marked as the boundary between the kingdom of J&K and Tibet. Indian maps show Johnson line.
McCartney & McDonald line was drawn between the British and Tibet passing through the Aksai Chin region. After acquisition of Tibet,
China constructed a road connecting Xinjiang to Tibet towards the right of this line.
India wants this line to be the international borders (the road will remain in China). But China doesn't agree to the sanctity of this line since
Tibet had no authority to draw any international line (it was never a free country). China wants the entire Aksai Chin plateau.
Line of Actual Control is towards the left of McCartney line and gives most of the Aksai Chin plateau to the Chinese.
In 1996 it was agreed that none sides will cross the LAC. In 2005, it was reiterated that both the sides will maintain peace and tranquility
along the LAC. If the two patrols meet, they will avoid confrontation.
LAC is maintained jointly by the army and ITBP (doesn't work under army). ITBP is under MIA and it refused to hand over the control to the
army. If we keep ITBP at the border, we send a signal to China that we are willing to accept it as an international border because ITBP is a
police force. A police force mans only internationally agreed borders. Also army is better equipped to maintain the border. China's border
police is also there but functions under the Chinese army command. So ITBP can be maintained there but command given under army.
2. McMahon Line
Runs from Bhutan to end of Arunachal Pradesh (Siang).
24/97
7/7/2014
2.
3.
4.
5.
Evernote Export
Concept of watershed: The watershed area serves as the border i.e. drainage system on either side of the watershed flows to either
directions. This concept is used in the hilly areas to draw the international boundaries between the two nations.
However McMahon line doesn't really follow the watershed concept. It also doesn't define very clearly the geographical locations through
which it passes. GoI's stand is that McMahon line is the guiding principle to draw the international border. The vaguely drawn line needs to
be correctly drawn. India considers the watershed line to be the LAC.
Chinese stand is entire Arunachal Pradesh as its own (extension and part of Tibet). China considers that culturally as well Arunachal
Pradesh is Tibetan. India believes culture alone cannot be the reason for drawing international boundaries. China also cites old historical ties
with the Arunachal to claim it. India's views is old historical claims cannot be the guiding factor in drawing international lines. Asoka and
Cholas cannot be used to draw international boundaries today. Finally China doesn't have any written document to support its historical
claims.
3. Sikkhim Border
When Sikkhim joined India, China didn't recognize it. In 2003, it de facto (not de jure) recognized Sikkhim as a part of India. So Sikkhim is
an international border now. But it is still manned by the army.
To defend the Sikkhim border, the Cabinet Committee on Security, has approved to raise a force called Sikkhim Scouts. They will guard the
Sikkhim - China border. It will be under the army and will be trained and equipped in mountain warfare.
4. Some border agreements with China
Panchsheel.
Sino-Indian Agreement, 1993: Calls for both armies to maintain peace and tranquility at the border.
Sino-Indian Agreement, 1996: Confidence building measures were instituted along LAC - to maintain pace, promote border openings at 2
points (Nathula in Sikkhim and Chusul in Laddakh) for people to people contact and periodical meetings at senior army level.
Sino-Indian Agreement, 2005: Maintaining restraint along the LAC.
Border Defence Cooperation Agreement: Recently India and China have started exchanging documents for border cooperation. Aim is to
develop a new mechanism for border security.
Hand in Hand Agreement: This is for jointly countering terrorism.
Currently there are plans to increase the person to person contact at 2 more points @ Lipulekh and Manna in Uttarakhand.
Pakistan: Sir Creek is disputed. From there till Jammu we have an international border. From Jammu to NJ9842 is the LoC. From NJ9842 to Sia Chin is
the Actual Position Line.
1. Sir Creek
East portion of Sir Creek is called the Green line. Pakistan considers this line to be the international border. Red line is the western border
of the Creek and India claims it to be the international border (?).
India and Pakistan have carried out many joint surveys of the Sir Creek area. These surveys were carried out by the surveyor generals of
both nations. The countries also have a Joint Working Commission on the issue and already have had 4 rounds of talks on it.
At one stage, an agreement appeared imminent when India agreed to the use of the Thalweg Doctrine. Thalweg Doctrine is an internationally
recognized procedure for the demarcation of international borders where a line is drawn through the greatest depth of the water. One of its
biggest shortfalls is that water bodies may change their course. Also the deepest portion may not be the central portion.
Later on India went back and opposed Thalweg Doctrine as it is applicable to water bodies having a flow. India says it is closed from one end
and doesn't have a flow. So Thalweg Doctrine is not applicable.
This area is infested by illegal arms dealers, smugglers and drug traffickers. If given to Pakistan, it may give easy access to India to such
elements from Pakistan. Pressure of smugglers is higher in this area as the international border has been fenced and lighted.
Another importance is the potential oil and gas reserves in the vast additional EEZ as per the UNCLOS if Sir Creek comes to either nation.
Responsibility of defending Rann of Kutch goes to BSF and not the army although it is not an international border. Responsibility to
safeguard the waters along the coast goes to the Coast Guard. Currently BSF is holding complete Sir Creek.
2. International border
This border is also looked after by the BSF and BSF mans all the border outposts along the international border. Army is positioned in
cantonments at least 50 km away from the borders. Border fencing has already been done. Fencing is done 150 meters away from the
border.
Drug trafficking through the international crossings is a major issue.
3. LoC
Since it is not an international border, it is controlled by the army. Major portion has got fencing, lighting, thermo imaging instruments, high
powered telescopes and electronic surveillance.
Currently the status between the two countries is that of a ceasefire. Both have to maintain tranquility and not open fire.
Major issue here is terrorist infiltration.
4. Sia Chin glacier
Its strategic importance is that it goes up to the Karakoram pas and thus overlooks the Karakoram highway.
Bangladesh
1. The major issue is the porosity of the border and the associated illegal migration into India. Other issues are smuggling, cross border crimes, terror
sanctuaries on the other side of the border, drug trafficking.
2. Both countries have come up with a Border Management Plan.
As per this plan, the BSF and the Border Guards of Bangladesh agreed to reduce the killing of people crossing the border.
They have agreed to refrain from firing at civilians. Troops will not fire at each other.
Both sides will periodically exchange information. A Joint Consultation Commission has been formed to increase the cooperation.
In vulnerable points, coordinated patrolling will be carried out.
3. Recently both countries have agreed to develop the following on the border:
1. Land customs stations.
2. Land ports.
3. Integrated check posts.
Bhutan
1. It has been a peaceful and open border. There is a Joint Group to assess the threats to Bhutan and India from various organizations. It also
discusses ways and means to maintain security of the open border. To achieve this, the local officials on both the sides have been directed to
conduct regular meetings.
2. The threat is that because the border is open and the topography of Bhutan is difficult, it was a safe hideout for terrorists. This threat has reduced
considerably after the Bhutanese army with the help of the Indian Army cleared out the terrorist camps in Bhutan (Operation All Clear).
3. This border is maintained by Sashakt Seema Border (along with Indo-Nepal border).
Myanmar
1. This is a completely porous border. The tribes are on both sides of the border like the Nagas, the Mizos, the Kukis. This is also a hilly and thickly
forested area.
2. Assam Rifles does the policing of the border. However the policing is not as effective as the other borders. This is so because of a strong
opposition from all tribal groups in the region on both sides. The policing from the Myanmar side too is very weak. Crime flourishes all along this
25/97
7/7/2014
Evernote Export
border including smuggling, counterfeit currency notes, drug trafficking, insurgency. Although the government has approved border fencing, but
because of the objection from the locals, fencing operations have not made much headway. The opposition is so much that even the border pillars
have been removed by the tribals. But currently some fencing near Moreh and Zawkhatar is coming up.
3. India and Myanmar have a border trade agreement. There are border haats at 2 points - Moreh in Manipur and Zawkhatar in Mizoram. There is also
a border trade committee to facilitate the trade.
4. Because the same tribes stay on both sides, there is an understanding between the two governments to facilitate the movement of such tribes.
This understanding features a permit system instead of the normal visa route and a person with the permit can come up to 16 km inside the other
country's territory and can stay for up to 3 days.
6. Nepal
1. It is an open border. People can cross the border without permit. Nepal became a hub of anti-Indian activities by proxy mainly encouraged by ISI. It
also serves as a transit point for such people. Terrorists, arms, drugs and counterfeit currency notes are smuggled from Nepal into India through
this open border.
2. So to police the border, both countries have developed a joint mechanism which includes meetings up to the home secretary level. There is also a
Border District Coordination Committee which is a coordination mechanism between the district administrations on both sides.
Reasons for Complexity of Indian Borders
1. Past history: Historical colonial era treaties.
2. Geography: Sir Creek issue, Palk Straits with Sri Lanka.
3. Ethnic / cultural relations with our neighbors: People speak speak same language, of same ethnic origins across the borders. There is no well demarcated
distinct cultures across the two sides of the border.
4. Overpopulation near the border: This creates pressures and complications in the border demarcation process. It makes the borders porous.
Challenges in Indian Maritime Security
1.
2.
3.
4.
5.
We have unresolved maritime borders with our neighbors. This leads to issues like fishermen getting imprisoned and clash over fishing rights.
Sometimes spies and terrorists cross the boundaries in the guise of fishermen. Fishing is mostly unorganized and so surveillance becomes very difficult.
Counter the growing influence of radical elements, foreign powers in the other island states like Maldives.
Extra-regional powers like US, Russia, China, France have their naval presence here.
Piracy, terrorism, smuggling, narcotics, human trafficking, unregulated sea traffic. The non state actors acting in the Arabian Sea are technologically
advanced making it an even bigger challenge.
Changes Post 26/11 in Maritime Security

1. Overall responsibility of securing Indian coasts lies with Navy. Before 26/11, coast guard, navy and police were independent of each other and coordination
was poor. Post 26/11 a coherent organizational structure was built. The apex body is navy and all other come under it.
2. Maritime police
1. Territorial waters are to be secured by the maritime police. Maritime police is a new concept post 26/11. Coastal police stations would be setup.
2. The overall work was scheduled to be completed in 2 phases. Phase 1 includes raising the coastal police and setting up 73 coastal police
stations.
3. The coastal police stations are a part of the maritime police (which comes under the state police) and their task has been well defined to include
protection of coastal regions. They are trained by the coast guards.
3. Coast Guard
1. EEZ is to be secured by the coast guard.
4. Sagar Prahri Bal
1. It is a fighting force which has been constituted to look after physical coastal security.
2. All its members come from the navy.
5. Electronic tier
1. The 4th tier of coastal security is the electronic security. This includes the use of satellites such as RISAT, OceanSat 1 and 2, coastal radars.
2. All data from all radars will be processed centrally on a real time basis. These radars can pick up boats 30 - 50 nautical miles away.
3. All merchant ships arriving in Indian waters must give mandatory 96 hours of notice before entering Indian waters.
4. AIDs will be installed even on fishing boats (merchant ships already have them). If any vessel's Automatic Identification System doesn't get
triggered then the vessel will be intercepted by the security forces.
6. Local community involvement
1. Fishermen will be sensitized towards coastal security.
2. Their boats will be equipped with electronic identification systems and they themselves will be given biometric identity cards.
7. The mandate of the department of border management has been extended to include all coastal border regions as well.
8. Phase 2
1. This includes installation of coastal radars, other electronic surveillance systems, setting up of new coast guard stations, creation of NSG hubs in
the coastal metros.
Weak nesses in Current Maritime Security Architecture
1. No port in India has the Container Security Initiative compliance i.e. to see what is there in the container since it is impractical to open all containers and
look in manually. When the containers are transferred from the ship to the port, the CSI system scans them immediately before they are placed on the
inland transport. This is a very big threat to our security.
2. We don't have strict laws to deal with some illegal activities in Indian waters. For instance, India is a big destination of dismantling of old ships - a ship
drifted on to the Juhu beach recently.
3. Currently we don't have procedure to electronically identify every ship.
4. The real time coordination between the navy, the coast guard and the marine police is still weak.
Role of Interlocutors
1. They are people who have no formal position in the government or any formal authority to speak on behalf of the government. Whatever they speak are
their personal views. However, communications via interlocutors are very useful in conveying information and ideas. They generally don't include active
politicians or serving government servants.
2. They try to find out what are the views of the other parties and gives the feedback to the government. Such a feedback is not binding on the government, it
is only an additional information in the decision making.
26/97
7/7/2014
Evernote Export
3. They are people generally on who both the parties have confidence.
4. They are different from the negotiators in the sense that the negotiators have more powers and official backing to make concessions and convey the
official line.
Border Area Development Programme

Evolution
1. It was launched in 1988 initially for the Pakistan border areas. Its aim is integrated development of the border areas. It falls under the Department of
Border management (check website) under the MIA.
2. It includes developing schools, water supply, health, sports. It is 100% centrally funded.
3. If there are any remote border locations and they have any specific needs, then to address those.
4. Funds are provided to the States for development of border areas on the basis of (i) length of international border (ii) population of border blocks and (iii)
area of border blocks. Weightage of 15% over and above the total allocation is also given to States having hilly/desert/Kutchh areas.
The border block will be the spatial unit within which the State
Government shall arrange to utilize the BADP funds only in those villages of
the blocks, which are located within 0-10 km from the international border.
Those villages, which are located nearer to the international border will get first
priority. After saturating these villages with basic infrastructure, the next set of
villages located within 0-15 km and 0-20 km need to be taken up.
Planning and
1
implementation of BADP schemes should be on participatory and decentralized
basis thorough the Panchayati Raj Institutions/Autonomous Councils/Other
Local Bodies/Councils. Projects not
exceeding Rs.5.00 lakh should strictly be implemented through local bodies
such as village committees/panchayats only.
The State Governments may consider creating/nominating a Nodal
Department/Cell with in the existing administrative arrangement for
implementation of the Border Area Development Programme (BADP). The
Nodal Department dealing with the BADP in the State shall hold individual
meetings with line departments of the States such as Power, Rural Development,
Electricity, Roads & Buildings, Water Supply, Social Welfare, Public
Distribution, Civil Supplies etc. in order to ensure the implementation of the
respective State/Central schemes in the identified border blocks. Utilization of
funds under the Centrally Sponsored Schemes/Flagship Schemes of Govt. of
India and the State plan schemes to the maximum possible extent in the border
blocks should be ensured.
A baseline survey shall be carried out in border villages in order to assess
the gaps in basic physical and social infrastructure
State Governments, may keep a provision not exceeding 15% of the
allocation made to the State for the maintenance of assets created under the
BADP subject to the condition that such expenditure can be made only after
three (3) years from the date of issue of completion certificate in respect of the
asset.
The State Governments can reserve 1.5% (one and half percent) of the
2
allocation made to the State subject to a maximum of Rs. 40 lakh for the
purpose of monitoring, training of staff at block level and for the evaluation of
the BADP, administrative expenditure for preparing the perspective plans, if
any, survey, logistic support (excluding purchase of vehicles), media publicity
etc.
The policy matters such as the guidelines of BADP, the geographical
areas within which the BADP is implemented, allocation of funds, modalities of
execution of schemes etc. will be laid down by an Empowered Committee
constituted under the Chairmanship of the Secretary (Border Management) in
the Ministry of Home Affairs.
schemes for each State will be approved by a State
Level Screening Committee chaired by the Chief Secretary of the State.
Each border block should be assigned
to a high-ranking State Government Nodal Officer who should regularly visit
the block and take responsibility for BADP schemes.
27/97
7/7/2014
Evernote Export
Land Ports Authority of India (LPAI) Act

Aims
1. To establish check points in the designated entry and exit points on the international borders.
2. To provide the customs, immigration etc. with infrastructure at these designated points.
Provisions
1. Land Port is a designated entry/exit point located on land borders.
2. Private sector can be hired by LPAI to perform the non-sovereign functions of maintenance and management.
3. The Integrated Check Post will be developed as a sanitized zone with state of art facilities to handle the flow of goods.
The 6th Schedule
Legislative Powers of District and Regional Councils
1. With the assent of the Governor, they can make laws with respect to:
1. Use of land other than a reserved forest.
2. Management of any forest not being a reserved forest.
3. Use of water resources for irrigation.
4. Regulation of shifting cultivation.
5. Establishment of village or town committees or councils and their powers.
6. Any other matter relating to village or town administration, including village or town police and public health and sanitation.
7. Appointment or succession of Chiefs or Headmen.
8. Inheritance of property.
9. Marriage and divorce.
10. Social customs.
11. Control of money-lending and trading by non-tribals.
12. The governor can vest them with additional criminal powers.
13. Any act of state legislature in matters pertaining to councils' affairs will have no effect unless assented to by the councils.
The Governor's and the President's Additional Powers
1. The Governor may declare that a state law is not applicable (or applicable in a modified form) to a tribal area in affairs not under tribal councils' domain.
2. The president may declare that a central law is not applicable (or applicable in a modified form) to a tribal area in affairs not under tribal councils' domain.
Judicial Powers of District and Regional Councils
1. Constitute courts and appoint their personnel for the trial of cases between Scheduled Tribes within such areas.
2. The Regional and District Councils are also empowered to act as Courts of Appeal.
Financial Powers of District and Regional Councils
1. Constitution of District and Regional Funds
1. Each council will have its own fund. All moneys due to such councils from various sources including the state and the central governments shall be
credited to these funds to be used by the councils at their discretion.
2. Estimated receipts and expenditure pertaining to the council by the state shall be first placed before the Council for discussion and then shown
separately in the budget of the state.
3. The accounts are to be maintained as prescribed by the CAG, who is also entrusted with their audit.
2. Powers to Collect Taxes and Fees
1. Councils can collect land revenue and impose taxes within their jurisdictions such as on lands and buildings, on professions, trades, callings and
employments, animals, vehicles and boats, on the entry of goods into a market, tolls on passengers and goods carried in ferries and for the
maintenance of schools, dispensaries or roads.
2. They are entitled to royalties from the extraction of minerals from their area.
Issues with the 6th Schedule (Art 244)
Vesting the Councils with the Executive Powers
1. Due to historical reasons and lack of proper understanding, a notion prevails that the role of the Councils is confined to passing laws, establishing and
administering justice through local courts and generally taking up a few regulatory functions. They are not expected to have any role in development
matters.
2. Even though some subjects stand formally transferred to the Councils under the Sixth Schedule, the State Governments have been slow in transferring
related executive powers and control over the corresponding departments to them.
3. The State Governments have continued to retain parallel development and administrative apparatus under their own command. This has led to functional
overlap and conflicts between the States and the District Councils.
4. The Indian Constitution provides that the executive power of the Union extends to matters with respect to which Parliament has power to make laws
and states have the executive powers in the matters where their legislatures are competent to make laws. The powers given to Autonomous Councils also
need to be interpreted in the same light: the legislative powers of the Councils should also be their executive powers.
Issue of Village Self Governance in the Sixth Schedule Areas
1. When the 6th Schedule was formulated, tribal customs reigned supreme and thus there was no thought of elections at the village level. So the 6th Schedule
doesn't pay any attention to the village self governance.
2. The idea of a two / three tier elected panchayat structure came only with the Mehta Committee Report in 1957. With various rural development schemes
28/97
7/7/2014
Evernote Export
and programmes becoming village centric and with Panchayats increasingly becoming involved in implementation of such programmes, the issue of village
governance in scheduled areas came to the fore.
3. All the Councils should now pass legislation for establishing village self governance with well defined powers and allocate them resources preferably like the
State Finance Commission. Such village self governments should be empowered to implement the various developmental schemes and also local planning.
4. In this they can be encouraged by tying the additional funding with the level of empowerment they do of the village self governance bodies.
5. Apart from the elected members, the traditional village functionaries will also need to be included in these Village self governments as ex-officio members.
However, it needs to be ensured that the majority of the members and the head are elected.
Part IX and 6th Schedule of the Constitution
1. The Councils are at the mercy of the State Governments for budgetary support and elections and are not covered by the State Finance Commissions and
the State Election Commissions. This anomaly needs to be corrected and appropriate parts of the Part IX should be extended to the Schedule 6 areas also.
Currently the part 9 explicitly is not applicable at all to the 6th Schedule areas.
2. Apart from SFC, the release of the council funds should be single window, untied and hassle free.
Governor's Special Powers - Discretion vs Advise of CoM
1. The idea of 6th Schedule was to protect the autonomy of the tribal areas and to save them from the decisions of the overwhelming majority of the state.
2. The Governor enjoys these special powers as a custodian of tribal interests and hence he needs to exercise these on his discretion and not on the advise
of the state council of minister.
Conditions in North East
Poor Economic Conditions
1. Per capita income is increasingly falling significantly behind the rest of the country. At the time of Independence per capita income in the undivided State of
Assam was higher than the national average while today it is lower by almost 40% in Assam. With the economic reforms, the difference in the growth rates
increased still further.
2. Much of the income generated is on account of government spending. The share of income generated by public administration is 10.6% and significantly
higher than in the rest of the country. This underlines the overwhelming dependence of the population on the government and a lack of productive economic
activities.
Issues in Assam
1. Migration
1. Its population more than doubled in the first half of the last century largely due to migrations.
2. Land pressure
1. The dependence of the State on agriculture is given from the fact that the rate of urbanization is way below the national average and even below rest
of NE.
3. Minorities
1. The situation is further compounded by a significant presence of religious and linguistic minorities, approximately 18% and 30% respectively.
4. Rivalry among the 6th Schedule Councils
1. Bodoland Territorial Council has been given greater administrative and financial powers compared to the Karbi Anglong Autonomous Council (KAAC)
and the North Cachar Hills Autonomous Council (NHAC).
2. Its funds are significantly larger than those available to the other councils. Control of line departments in the area have also been transferred to the
Council.
3. However, it is the only Council with a few seats exclusively reserved for non-tribals. Also, it is the only Sixth Schedule Council which does not have
judicial powers. The judiciary as existent in other parts of the country was fully functional in these areas by the time the BTC was born.
4. There is a growing demand that there should be full parity among the three Councils in terms of legislative and executive powers.
5. 6 Tribe Specific Councils (created under State enactment spread over 12 districts)
1. These have fragmented the state administration and also given rise to other issues.
2. In order to cover the largest possible numbers of the relevant tribe, a further innovation has been made to identify satellite areas i.e. isolated pockets
with significant population of the target group.
3. Such areas are kept within the purview of the Council despite the fact that they are cut off from the core areas and may be in other districts.
4. Such districts may be under the purview of the 73rd Constitutional amendment with the regular Panchayat institutions and thus a clash with the
Tribal council.
5. The Constitutional pattern needs to be respected and Panchayats be strengthened in these areas, rather than to create councils on the basis of
ethnic identity.
Issues with North East Council
1. In the wake of the reorganization of the States of the region in 1972, the North East Council was set up to provide a forum for inter-state coordination,
regional planning and integrated development.
2. The Council is chaired by the Union Minister for the Department of North-East with the Governors and Chief Ministers of North-East States and Sikkim as
its Members.
3. The Council has not been able to live up to its expectations. The most important reasons are inadequate availability of funds and absence of professional
planning and implementation capacity.
4. Also, the increasing State Plan outlays along with enhanced central allocations through CSS and ad hoc allocations have resulted in a shift of attention
from the Council to the Planning Commission.
Issues with North East Ministry
1. Ministry of Development of North Eastern Region coordinates with various Ministries/Department primarily. But the respective Ministries/Departments are
responsible in respect of subjects allocated to them.
2. The formation of the DONER Ministry has added to the confusion. Ironically, therefore, a region which requires a focused attention on many key issues has
been made the responsibility of several organizations with blurred responsibilities.
Linkages Between Development and Extremism
6th schedule and 5th schedule
29/97
7/7/2014
Evernote Export
Moving governance of tribal areas in central India from the Fifth to the Sixth Schedule will help address the demand for autonomy
Bastar district in Chhattisgarh is governed by the Fifth Schedule, but it wants to move into the Sixth Schedule. The Fifth Schedule on the other hand fails because
it has never been applied.
PESA was considered the most logical step in the Fifth Schedule areas to ensure tribal welfare and accountability. But, alas, it has not been properly implemented.
Tribal communities have progressively been denied self-government and rights to their communities natural resources that should have been provided under the
legislation.
In its 1997 Samatha decision, the Supreme Court ruled that the Fifth Schedule enjoined Governors to bar purchase of tribal land for mining activity by any entity
that was not state-owned. This judgment however, led to an opposite reaction from the Ministry of Mines, and subsequent appeals from the Andhra Pradesh
government claiming that Samatha would have an adverse effect not only on the mining sector but also on non-agricultural activities especially industrial activity
and hence would impact the economic development throughout the country. In response, the Governors were then given unfettered authority in the transfer of
Scheduled Tribe land to the government and allotment to non-tribals, altering the balance of power and undermining the stated goal of tribal autonomy.
Other examples abound, including the Scheduled Tribes and Other Traditional Forest Rights Act of December 2006, which ostensibly recognises the right of
communities to protect and manage their forests (as does PESA), but only if the state decides whether a certain region is denoted as Village Forest or Reserved
Forest. In this process, many communities are evicted without a proper channel of rehabilitation.
30/97
7/7/2014
Evernote Export
Evolution and Current Status of LWE

1. Various groups of Naxalites started resurfacing in various parts of India during the early 1980s. The naxalites of Andhra Pradesh regrouped as the CPI-ML
(Peoples War Group/ PWG); likewise the Bihar Naxalites rechristened themselves as the Maoist Communist Centre (MCC).
2. PWG of Andhra Pradesh
1. It turned out to be the most active not only in Andhra Pradesh but also in Orissa, in the tribal belt (Bastar-Dandakaranya) of Madhya Pradesh (now
mostly in the State of Chhattisgarh) and Maharashtra, causing considerable violence in these States.
2. It succeeded in mobilising a fairly large section of the rural population in the outlying districts and also in the urban areas. It also succeeded in
enlisting the support of a vocal section of the civil society. It openly started holding Praja Courts in which complaints against land-owners, moneylenders and even against government officials were being entertained and swift justice meted out. Even elected representatives were being given
directives by such courts, which were generally obeyed.
3. When police action started, it created a sense of insecurity among sections of the Maoist cadres which prompted them to resort to brutal murders
and tortures of villagers on the slightest suspicion of being police informers. This created alienation among the local villagers.
4. At a later stage, Greyhounds operations were launched and PWG pushed out of Andhra.
3. Chattisgarh
1. Here they developed expertise in the use of landmines and IEDs which caused significant casualties.
2. Another significant development was the creation of Salwa Judum and its subsequent dismantling.
4. MCC of Bihar
1. Here the naxalites found that their greatest adversary was not so much the administration and the police but the armed gangs (senas ) of the
landlord class - the Ranbir Sena. Here instead of assuming the characteristics of class struggle as propagated by Maoist ideologues, the skirmishes
took the shape of caste warfare.
5. West Bengal
1. Here the Naxalites seem to be repeating some of their tactics of the 1969-72 period. Thus they have started targeting specific CPM party
functionaries at local levels. Their targets are not confined to the known Naxalite affected districts of West Midnapore, Purulia and Bankura only.
A number of CPM party functionaries have been attacked and killed in the districts of Nadia, Burdwan, Birbhum, Murshidabad etc.
6. Consolidation
1. It was completed with the formation of the CPI (Maoist) on 21 September 2004. This was followed by their increasing militarisation and acquisition of
sophisticated firearms and ammunitions.
2. Their arsenal now boasts of self loading rifles (SLRs), AK series of rifles and INSAS rifles. It is believed that currently the Maoists have also gained
31/97
7/7/2014
Evernote Export
access to the technology of fabricating rockets and rocket launchers. The threat from the Maoists has increased on account of their developing
expertise in fabricating and detonating Improvised Explosive Devices (IEDs). Unlike in J&K where landmines are detonated with remote-controlled
device, the Naxalites so far have been using wire-controlled detonations which cannot be neutralised electronically.
Recent Strategy Decisions to Counter Naxalism

1. Security response
1. To enhance the level of central forces and focus on surgical operations to take out the top leadership. State police to continue taking the lead role.
2. Good thing is that LWE is gaining importance in the policy circles and recent years have witnessed more than tripling of the numbers in central
forces deployed in the naxalite areas.
3. To follow the Andhra Pradesh model.
4. To increase inter state cooperation and conduct cross-border raids.
2. Administrative response
1. Development funds are often diverted to the Naxalites. The political parties/ political leaderships too pay protection money to the Naxalites. Poor
governance has led to increase in Naxalite activities. The states delivery mechanism has to be revamped. The state has to penetrate into remote
tribal areas.
2. The only way forward is to build infrastructure and add to the manpower. Teachers, nurses, doctors should want to go there.
The Andhra Model
1. Security response
1. Use of specialized and dedicated police force called the Greyhounds.
2. Strengthening the intelligence gathering and intelligence based operations.
3. Enhancing the role of local police stations in operations.
4. Making efforts to infiltrate the Maoist hierarchy.
5. Effective surrender and rehabilitation policy.
6. Victim reassurance policy including civil and police rehabilitation.
2. Political response
1. The political leadership was initially not sensitive enough to the impending Naxalite challenge. This changed and a consensus had emerged among
the political formations by about 1996-97 that the rebels had to be taken headlong, in all possible ways.
2. Thus a consensus was evolved over the counter naxalism strategy.
3. Developmental response
1. Twice development programmes have been launched in the State with the particular objective of bringing in rapid socio-economic development in
Naxalite-affected areas. The first initiative was known as Remote Areas Development Programme; and the second is known as Remote and Interior
Areas Development Programme.
The Greyhounds
1. They are an elite commando force in Andhra Pradesh created to combat left wing extremists. Only the best policemen make it to the Greyhound squad,
which is one of the highest paid in the country.
2. The force, which numbers around 2,000 in the state, moves around in small bands of 15-25 commandos. They are specially trained for deep forest pursuit
and combat.
3. Greyhounds is maintained as a youthful force by drawing personnel from various departments of AP police for a fixed tenure
Roshni
1. A new skill development scheme for rural youth from 24 most critical LWE affected districts. It aims at skilling and placement of 50,000 youth from these
districts. It will be implemented at a cost of Rs 100 crore over the next three years. At least 50% of the candidates shall be women and special efforts will
be made to proactively cover tribals.
2. Projects shall be funded jointly by the central and state governments in the ratio of 75:25. Training will be imparted through public-private and public-public
partnerships.
3. National level agencies shall be designated to act as monitoring and coordinating agencies.
Factors Behind Worsening of the Situation

1. Fear instilled by Naxalite violence
1. They want to make security situation bad so that no developmental activity takes place, no teacher or doctor works in that area and the villagers will
continue to remain backward. They are not interested in improving the situation as it suits their ends. They will blame their backwardness on the
government and get popular sympathy.
2. They are driving the political parties out. They kill the government officials and politicians. They did it in AP and are doing it in Chattisgarh, Jharkhand
and Odisha.
3. They also kill the tribals on the presumption they were police informers. Thus a situation has emerged that people dont come out against them out
of fear of being killed and intelligence gathering suffers.
2. Harassment of tribals by the state
1. Issue of land rights and forest rights of the tribals. It is very important to properly implement PESA in tribal areas. They must be given rights over
minor forest produce.
2. The retaliatory cases registered by the forest department and the police against the tribals to harass them. Orders passed from the top to drop such
cases are not implemented.
3. Groups such as Salwa Judum.
3. Policing and Security challenges
1. Originally, the Bastar district was much larger than Kerala and still had only 1,000 odd policemen. Even today entire Chattisgarh has only 48,000
32/97
7/7/2014
Evernote Export
policemen compared to Delhi's 95,000. The silver lining is the rapid increase in the deployment of central forces in LWE areas. It takes a lot of time
(over a decade) and money to raise and train a large police force.
2. Whatever little police presence is there is demoralized. In other parts of the country, the role of the beat constable is to look into petty crimes.
However, the policemen in places like Bastar are required to be like commandos.
Genuine Grievances of Tribals

Land Related Factors
1.
2.
3.
4.
5.
6.
Evasion of land ceiling laws.

Existence of special land tenures (enjoying exemptions under ceiling laws).
Encroachment and occupation of Government and Community lands (even the water-bodies) by powerful sections of society.
Lack of title to public land cultivated by the landless poor.
Poor implementation of laws prohibiting transfer of tribal land to non-tribals in the Fifth Schedule areas.
Non-regularization of traditional land rights.
Displacement and Forced Evictions

1. The Forest Act, 1927 and the Forest Conservation Act, 1980 along with stringent Supreme Court orders have turned forests into prohibited areas for
the tribals.
2. Eviction from lands traditionally used by tribals.
3. Displacements caused by irrigation and power projects without adequate arrangements for rehabilitation.
4. Large scale land acquisition for public purposes without appropriate compensation or rehabilitation. Compensation, if paid, is a pity as the 'official' land
values are hopelessly out of touch with reality.
Livelihood Related Causes
1. Lack of food security corruption in the Public Distribution System (which are often non-functional).
2. Disruption of traditional occupations and lack of alternative work opportunities.
3. Deprivation of traditional rights in common property resources.
Social Exclusion
1. Denial of dignity.
2. Continued practice, in some areas, of untouchability in various forms.
3. Poor implementation of special laws on prevention of atrocities, protection of civil rights and abolition of bonded labor.
Governance Related Factors
1.
2.
3.
4.
Corruption and poor provision/non-provision of essential public services including primary health care and education.
Incompetent, ill trained and poorly motivated public personnel who are mostly absent from their place of posting.
Misuse of powers by the police and violations of the norms of law.
Perversion of electoral politics and unsatisfactory working of local government institutions.
What Needs to be Done

1. Police action vs Negotiations
1. They are alienated sections of society rather than perpetrators of high treason they have to be treated as such.
2. Police action over a long period is counter-productive.
3. Negotiations have a definite positive role, this is the experience the world over.
4. But negotiations alone can't succeed. Negotiations are likely to succeed when the good intentions of the State are visible along with its will to
restore order. Thus security forces have an essential role in handling the situation.
5. Security forces also have a role in protecting the development infrastructure in these areas.
2. Police action vs Human Rights
1. Even in the most difficult situations, the operation of security forces must be strictly within the framework of the law. It is necessary that SoPs and
protocols are laid down in specific terms and detail.
2. Training including sensitizing police and paramilitary personnel to the root causes are needed.
3. Police force comprising primarily of local people is of inestimable value. Local police forces have a huge advantage in intelligence gathering capacity.
Local police force is far more cost effective and more viable in the long run than inducting central forces. Scrupulously enforcing the prescribed
reservations from the relevant areas, launching special recruitment drives and raising tribal battalions of the Police are some of the measures that
require urgent attention.
3. Developmental Response
1. Faithful, fair and just implementation of laws and programmes for social justice like MGNREGS.
2. Sustained, professionally sound and sincere development initiatives suitable to local conditions along with democratic methods are needed.
3. Personal safety of senior functionalities needs to be assured so that they can go into the disturbed areas and government machinery returns.
Role of Civil Society
1. Opinions vary about the role of civil society organisations in cases of left extremism because many such organisations are alleged to have a leftist
ideological orientation and, in some cases, the NGO may even be a front for the extremists themselves.
2. Votaries of the law and order approach hold that such associations are no better than proxies for militant extremists with demoralisation of security
forces as their primary aim and that they shift the focus from the violence, killing and extortion by the extremists by highlighting the police violence only.
3. On the other hand, there is a growing realisation that such organisations have a major role to play as interlocutors, and act as a bulwark against abuse of
power by the police and other state functionaries in other words their activities strengthen the rule of law.
4. While there may be some black sheep among these organisations, there is little doubt that they have the potential to act as a bridge and in educating the
people and preventing aggravation of the situation by ventilating public grievances within the legal-democratic framework.
Cutting the Source of Finances for Naxalites
1. One way to ensure that development funds do not reach the extremists is by entrusting developmental works temporarily to organisations like BRO and
33/97
7/7/2014
Evernote Export
other governmental agencies which can execute these works directly instead of going via contractors who then pay extortion money to the naxalites.
2. Activities such as illegal mining and collection of forest produce yield a huge volume of funds for the extremists. This needs to be checked.
The 5th Schedule (Art 244)
SC/ST schedules
1. He may amend the schedules of notified STs in union or any state. If the state list is amended, he has to consult the governor of the state.
Administration
1. Presidential powers: He can declare / modify / delete the list of scheduled areas (5th schedule) subject to laws made by parliament. He can give directions
to the respective states regarding the administration of scheduled areas. All regulations made by the governor of state for the scheduled areas have to be
submitted to the president and failing his assent shall not have any effect. He may ask the governor to submit an annual report on the administration of
scheduled areas and instruct him on administrative manners.
2. Governor's powers: Tribal advisory councils may be constituted by him in scheduled areas to give advice to the governor on such manners as may be
referred to them by the governor. The governor can direct that a particular act (central or state) or a part thereof is not applicable to the scheduled area or
only applicable with certain modifications. The governor can also regulate the transfer of land by or among STs and regulate the business of money lending
in scheduled areas.
3. Parliament's powers: Parliament can amend any provisions in schedule 5 with an ordinary majority.
The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006
1. It vests land rights to each tribal family provided they have been the user of forest land for 3 generations or 75 years. This right is heritable but not
alienable and transferable. Vested land can be used only for livelihood purposes.
2. Rights under this also include access to minor forest produce, community rights to intellectual property and traditional knowledge related to forest
biodiversity and cultural diversity.
3. The dwellers are duty bound to protect the forests, biodiversity and wildlife in the area.
The Act holds promise of realising claims of tribal and other forest dwellers2 over the dwelling and cultivation lands under their occupation. They are also to benefit
from complete ownership rights on non-timber forest produce (NTFP)/minor forest produce (MFP), and management and protection rights over forest resources,
including community rights.
Implementation Process
The process of implementation of this Act begins right from the gram sabha (GS) level, where Forest Rights Committees (FRCs)3 are constituted and authorised
to assist the GS collate, verify and approve claims to rights as required. As per the Act, the GS in the scheduled areas (SAs)4 must be convened at the hamlet
level, while in the traditional villages it has to be at the village level. As per the Act, the FDs have only a negligent role in the implementation process of the FRA.
They are required merely to be present with the FRCs during the verification stage. Even this presence is not mandatory according to the rules, and will not imply
on the decision of the FRC.
However, in total disregard to the Act, the FD is seen to be functioning as veto in denying rights to the people, and by rejecting their claims at the screening
stage itself (CSD 2010; GoI 2010; Writ Petition 2011). Hence, it could be said that though, ostensibly, this Act appears to be people-oriented, the final shots are
called by committees of bureaucrats, elected representatives, and the FD, which incidentally was never in favour of this Act.
With regard to representation of women in the FRCs, there appears to be complete overlooking of their share in most of the states, the usual story being
inadequate or complete absence of women. Moreover, the GSs are also being convened without their attendance (GoI 2010). All this is happening when the fact is
now well-established that women (about 60-70% (Gera 2002)) are the main contributors to the tribal economy through MFP collection and sale
Community rights were expected to be equally in demand as individual rights because these rights would provide secure livelihood avenues to the FDP through
forest resources (Kothari 2011). However, the ground reports suggest otherwise because people failed to take advantage of this provision to the fullest, besides
their fallacy of seeing land first before other rights. he reasons for the poor implementation were: the FD threatened the communities with losing out on Joint
Forest Management (JFM) funds if they claimed rights on forest resources; the FDs indifferent approach in facilitating community claims. More glaringly, the
community also appeared to not own the responsibility for community resources because, in many cases, they have open access to it. Moreover, they saw
management of community resources as the governments responsibility and not theirs
The laws most often overlap with the objectives of the FRA when the national and the state governments use their authority to issue lands for development
projects, overlooking the possible claims on such lands (Kothari 2011). Such overriding authority gains strength because the Act remains subject to the states
eminent domain in the acquisition of lands in the name of development projects (Bose 2010).
Lack of awareness among the main stakeholders of the FRA is now a well-acknowledged fact, especially in the wildlife protection areas where the extremely poor
implementation was obvious because of the vulnerability and poor awareness levels, .
In the case of Other Traditional Forest Dwellers, having to prove their residency for three generations, or their using the forest for 75 years, appears to discourage
them from their rights through this pungent criterion.
Amendment to ST (Recognition of Rights) Rules, 2012

1.
2.
3.
4.
5.
6.
Lay down a procedure for identification or hamlets or settlements and process of consolidation of their lists.
Increase the mandatory tribal membership of Forest Rights Committees from the present one-thirds to two-thirds.
Reduce the present requirement of quorum of two-thirds in the gram sabha meetings to one-half.
Clarify that the term sustenance includes fulfillment of livelihood needs of self and family, including the sale of any produce.
Allow transportation of minor forest produce within and outside forest area.
Lay down process for recognition of rights, including community rights.
34/97
7/7/2014
Evernote Export
Niyamgiri
Affirming the decision-making power of the village councils of Rayagada and Kalahandi under the Forest Rights Act (FRA), the court directed these gram sabhas
to take a decision...within three months on any claims of cultural, religious, community and individual rights that the forest dwellers of the region may have. the
question whether STs [Scheduled Tribes] and other TFDs [traditional forest dwellers], like Dongria Kondh, Kutia Kandha and others, have got any religious rights
i.e. rights of worship over the Niyamgiri hills, known as Nimagiri, near Hundaljali, which is the hill top known as Niyam-Raja, have to be considered by the Gram
Sabha,. Gram Sabha can also examine whether the proposed mining area Niyama Danger, 10 km away from the peak, would in any way affect the abode of
Niyam-Raja. Needless to say, if the BMP [bauxite mining project], in any way, affects their religious rights...that right has to be preserved and protected. Once the
gram sabhas have made their decision, the court gave the Ministry of Environment and Forests (MoEF) a further two months to take a final decision on granting a
forest clearance for the bauxite mining project.
In particular, by sending the matter back to the gram sabha because a key matter has not been placed before it for its active consideration the court is treating
the gram sabha as a statutory, legal authority at the same rank as, say, the forest advisory committee or MoEF. The Bench also made it clear that the FRA
protects a wide range of rights of forest dwellers and STs including the customary rights to use forest land as a community forest resource and not restricted
merely to property rights or to areas of habitation.
The Supreme Court's decision to let gram sabhas decide the fate of Vedanta's Niyamgiri mining project will make it difficult for the government to divert forest land
for industry without the consent of tribals and local population. The apex court's ruling on Thursday puts gram sabhas or village assemblies virtually at par with
statutory and regulatory bodies, and gives a broader prism of rights to indigenous communities by defining the Forest Rights Act as more than just heritable
property rights.
This will make it difficult for the government to move ahead with its plans to limit the say of gram sabhas in diversion of forestland for industrial use. In an effort to
speed up industrial projects, a panel headed by the Prime Minister's Office in December last year had recommended that the rights of gram sabhas under the
Forest Rights Act, making their prior consent mandatory, should be watered down to operate only in cases of exception.
The ruling linked the constitutional provision for the protection of Scheduled Tribes as enshrined in Article 224 with protection of religious rights under Articles 25
and 26 and the Forest Rights Act.
The Panchayats (Extension to the Scheduled Area) Act, 1996
1. It is very important because it seeks to strengthen local self-governing institutions. It brings the Gram Sabha at the centre-stage.
2. Gram Sabha has the power to manage community assets like water bodies, wastelands, and minor forest produce.
3. It vests with the Gram Sabha the power to approve implementation of development plans and to verify their implementation. It gives the Gram Sabhas the
power to ratify the decisions of the Panchayats. The Gram Sabha will have control over institutions and functionaries connected with local area planning.
4. The Gram Sabha is made the custodian of traditions, culture,identity and customary mode of dispute resolution.
5. Reservation for the STs shall not be less than 50% and that all seats of Chairpersons of Panchayats at all levels will be reserved.
6. The powers of the Gram Sabha could be divided into the following three categories:1. Functions and responsibilities where the approval of the Village Gram Sabha is compulsory: (i) Approval of plans, programmes and projects for social
and economic development (before they are taken up for implementation). (ii) Identification/selection of beneficiaries under anti-poverty/other
programmes. (iii) Grant of certification of utilization of funds to Panchayats.
2. Functions and responsibilities which require compulsory consultation with the Gram Sabha: (i) acquisition of land for development projects, (ii)
resettlement/rehabilitation of displaced persons.
3. Functions where prior recommendation of the Gram Sabha is necessary: (i) grant of exploration license and mining lease for minor minerals, (ii) grant
of concession for the exploitation of minor minerals by auction.
7. Gram Sabha has powers with regard to enforcement of prohibition, ownership of minor forest produce, preventing land alienation, management of village
markets, money lending.
8. Provision of any law relating to Panchayats which is inconsistent with PESA will cease to operate after one year of its enactment.
9. The higher level Panchayats in Scheduled Areas in no case should marginalize the Gram Sabhas by assuming their power and authority
Issues with PESA
1. PESA is an indicative legislation.
1. It lays down certain guidelines whose implementation depends on the States which has been generally tardy.
2. The provisions of PESA have been highly diluted in the process of ratification by the States and most of the powers of the Gram Sabha have been
given to the district administration or to the Zilla Parishad.
3. It may be useful to link performance in this regard with allocation of untied grants to the states.
4. If any State does not implement the provisions of PESA in letter and spirit, the GoI should issue specific directions to it under the constitution.
2. Poor awareness.
1. The tribal population is not aware of the provisions of the Act. If they are made aware of the provisions of PESA, it would result in greater
participation.
3. Land related provisions.
1. PESA had specifically provided for prevention of alienation of land. It asked the State Legislatures not to make any law which is inconsistent with the
objective of preventing alienation of tribal land.
2. It had empowered every Gram Sabha to prevent alienation of land in the Scheduled Areas and to take appropriate action to restore any unlawfully
alienated land of the Scheduled Tribe.
3. Paradoxically it has been indiscriminately used to promote industrial development at the expense of tribals via fraudulent gram sabha hearings and
manipulation by local power lobbies.
4. A forum should be established at the central level to monitor its implementation at the ground level.
4. The 5th Schedule requires the Governor of every State to send an annual report, but this requirement is not being met regularly. This should be given due
importance. Such reports should be published and placed in the public domain.
5. PESA required all conflicting laws to become invalid after 1 year of its notification. But in practice these laws are being still followed by the state
government machinery. Similarly there are large number of union legislations and schemes which need to be harmonised with the provision of PESA.
6. In tribal areas, though, the society and economy is closely woven around womenfolk, their involvement at the Gram Sabha level is minimal. There is need to
make suitable provisions in the Rules making it mandatory that the quorum of a Gram Sabha meeting would be acceptable only when out of the members
present, at least 33% are women.
The Tribal Sub-plan (TSP)
1. TSP has been around for many decades but its planning and implementation have been weak.
2. A major reason is that qualified personnel are reluctant to work in tribal areas. For government employees, a posting in these areas is considered to be a
35/97
7/7/2014
Evernote Export
punishment.
3. The situation is further compounded by lack of data; there has been little attempt in the past to have an impact assessment made.
4. Then there is the issue of extremism.
Rehabilitation Issues
New National Rehabilitation and Resettlement (R&R) Policy, 2007
1. Land-for-land, to the extent Government land would be available in the resettlement areas. Preference in land-for-land for STs followed by SCs.
2. Preference for employment in the project to at least one person from each nuclear family, subject to the availability of vacancies and suitability of the
affected persons.
3. Training and capacity building for self-employment.
4. Scholarships for education of eligible persons.
5. Preference to groups of the affected persons in the allotment of contracts and other economic opportunities in or around the project site.
6. Wage employment to the willing in the construction work in the project.
7. Housing benefits.
8. Tribal Development Plan will include a programme for development for alternate fuel and also for minor forest produce resources.
9. Consultations with Gram Sabhas and Tribal Councils.
10. A grievance redressal mechanism to be established.
11. Land acquired for a public purpose cannot be transferred to any other purpose but a public purpose.
Recommendations for Improvement in Rehabilitation in India
1. There is a need to introduce the concept of benefit-sharing in India.
2. The Land Acquisition Act is still based on the concept of cash compensation. The old concept of paying compensation based on the market value of land
should be replaced with assessing the true value of land for all those who depend on it and then compensating them adequately.
3. A new legislation must be brought that apart from laying down norms of fair compensation also incorporates the principles of income-sharing and creation of
a resettlement development fund.
4. Compensation should not be confined only to the title holders of land but should include all those who derived sustenance from the land.
Special Economic Zones
1. SEZs are land grabs only.
1. SEZ policy in India has led to displacement, loss of agricultural land and real estate speculation. It has led to a scramble among developers to grab
cheap agricultural land and little attention has been paid to achieving the real objective of promoting industrial activities.
2. While China had permitted a limited number of very large sized SEZs, in India hundreds of SEZs have been approved including some that are only
10 hectares in size. These are essentially for real estate speculation only.
3. The 25% requirement on processing activity in SEZs has also been criticised as too little since it would lead to speculative real estate activity rather
than job creating manufacturing activities.
4. The tax breaks in SEZs which can continue for 15 years will lead to revenue loss and not create much extra capacity as the existing industries will
simply relocate to the SEZs.
5. Acquiring land for SEZs cannot be termed as a public purpose.
6. Compensation must follow income sharing approach.
Linkages Between Organized Crime and Terrorism
Various Security Forces and Agencies
The Defence Procurement Policy, 2013
1. Lays down the preferred order for defence procurement
1. Buy (Indian): The buy (Indian) mode is the one in which procurement is done directly from a domestic firm and is expected to boost local
production.
2. Buy and make (Indian): Make means making in the public sector. Its procedures have been simplified and cases would be cleared quickly.
3. Make.
4. Buy, make with transfer of technology.
5. Buy (global): This is the hitherto prevalent mode and means purchasing in entirety from a global original equipment manufacturer. It would now be
the least preferred.
2. Level playing field between DPSUs and the private defense companies
1. An advantage that DPSUs have over private sector has been the MoDs nomination of selected DPSUs as the recipients of Maintenance Transfer of
Technology from foreign vendors in major acquisitions.
2. Now this system of nomination will be done away with and the winning vendor will have a free choice to tie up with a firm of its own choice private
or public for the MToT.
3. Clear definition of Indigenous Content: The Indigenous Content has now been defined in more specific terms, providing requisite clarity. Self certification
by vendors will be accepted.
4. Expediting defence procurements: The proposed amendments now stipulate that the SQR will be frozen before the AON has been granted the stage at
which the government gives a service the go ahead to start a procurement project. Further, the validity period of AON has also been reduced from two
years to one year. This has been done to reduce the time gap that large defense procurements generally suffer from. Together, these measures are
expected to expedite the acquisition process and increase transparency.
5. Enhanced delegation of financial powers: The financial powers of the service chiefs and the defence procurement board have been increased.
6. Advance consultations with the industry: Indian defense companies will get access to the militarys long-term equipment road map, providing them with
the time needed for developing the equipment that the military needs in the future. Militarys 15-year Long-Term Integrated Perspective Plan (LTIPP) will be
shared with them.
7. It explicitly defines items which need a defense items. Dual use items will not require license.
36/97
7/7/2014
Evernote Export
SWOT Analysis for Indian Private Sector

The Indian private sector needs to work a lot to achieve the desirable quality and scale. But there exist many obstacles for it.
1. Adverse policy and regulatory environment.
2. Lack of level playing field with DPSUs.
3. Lack of a manufacturing ecosystem.
4. Distorted monopsonistic defence market.
5. An ambiguous defence offset policy.
6. Poor investment in R&D.
7. Large capex requirements coupled with long gestation periods.
A positive for the private sector is the large market size available to it.
Next Steps for Government
1. Encouraging defence production ecosystems within the upcoming NIMZ, especially for dual use technologies.
2. Using the defence offset policy to encourage joint ventures by offering additional multipliers on their discharge of offset obligations.
FDI in Defence
1. Opposing the FDI
1. Defence sector must be the monopoly of the defence public sector undertakings.
2. Relaxing the ceiling would make the Indian defence sector hostage to foreign companies, jeopardising our national security.
2. Supporting the FDI
1. No large nation is so dependent on imports as India is. The so called indigenous defence industry is non existent, has been non existent for the
past 60 years. Any continuation of the same policies based on above arguments given by FDI opposition will keep our country perpetually
dependent on imports.
2. Higher imports hurt our security more than higher foreign equity of some defence companies may.
3. To develop even the indigenous private sector capabilities an ecosystem needs to be created. The technology and competition accompanying the
higher FDI will only help in creating such ecosystem. The JVs will give requisite experience to the domestic players to develop their own
capabilities as well. Brazil has done this successfully through liberalization of its defence sector.
4. 26% FDI is too small to attract major players. 26% equity holding only lets them block special resolutions. It does not give them the freedom to
appoint directors. It also limits the profit of such companies. Why then should a company transfer technology and create competition for the parent
companies?
3. What needs to be done?
1. Have no limit on FDI. Vary the limit on a case-to-case basis depending on what a company may be proposing to establish in India. If the
technology is necessary to fill critical gaps in Indian technology, allow even 100% and impose conditions such as the hiring of Indian engineers and
sourcing components indigenously. This would help the development of ancillary industries.
2. Assure continuing orders for a decade or so in the form of repeat orders. Impose conditions necessitating technology upgradation when they are
available with the parent company.
3. Encourage the firms to gradually transfer their holdings to Indian firms.
Aircraft Carriers Launch Technologies

Short Tak e Off and Vertical Landing (STOVL)
1. It uses aircrafts which are capable of landing and taking off just like helicopters. Currently being used in INS Virat and an old technology.
Short Tak e Off But Arrested Recovery (STOBAR)
1. Used in Admiral Gorshkov and INS Vikrant (planned 1st indigenous aircraft carrier). Aircrafts will fly off an inclined ramp and land with the help of arrester
wires like a hook on the fighters tail.
Catapult Assisted Tak e Off But Arrested Recovery (CATOBAR)
1. To be used in INS Vishal (which will follow the Vikrant). This has a steam-driven piston system catapulting the aircraft to get airborne. With greater steam
pressure, significantly heavier aircraft can be launched.
Electro-Magnetic Aircraft Launch System (EMALS)
1. It uses a new-generation catapult which has a powerful electro-magnetic field instead of steam. It can launch still heavier aircrafts, AEWs and
37/97
7/7/2014
Evernote Export
drones. EMALS causes less wear and tear on carrier-launched aircraft since electric power can be delivered more accurately than steam.
2. It also launches aircraft quicker; requires less personnel to operate; and its high acceleration allows launches in still conditions, when STOBAR aircraft
carriers must sail at 20-30 knots to generate wind-over-deck, needed to create the lift required for take off.
Cabinet Committee on Security

1. It is chaired by the PM and the members are ministers of defence, home, finance and external affairs.
National Security Council (created in 1998)
1.
2.
3.
4.
It is the highest body that deals with country's political, economic, energy and strategic security.
It has the National Security Advisor (NSA) who is its functional head. He directly reports to the PM and advises on internal and external security issues.
RAW and IB give their reports to the NSA who then briefs the PM.
Its other members are defence minister, external affairs minister, internal affairs minister, finance minister, deputy chairman of PC and any other minister
as per the requirement is called.
5. It is divided into 3 parts
1. Strategic Policy Group: It has a large number of members and is the main nucleus of those who deliberate and develop the policies on security
matters. Cabinet Secretary, Chairman of CBDT, chief of the 3 forces, home secretary, defence secretary, governor RBI, heads of all intelligence
agencies are all members of it.
2. National Security Advisory Board: These are the people who are experts in various fields. They may not be government servants but can analyze
various threats and provide input to the NSA.
3. Joint Intelligence Committee: It receives all information inputs from IB, RAW and the 3 armed forces intelligence.
Army Structure
1. Command (based on geographical regions) --> Corps --> Division --> Brigade --> Battalion --> Company --> Platoon (30 soldiers) --> Sections.
Naval Structure
1. Vizag is an important naval base because our submarines are located there.
Strategic Force Command
1. Nuclear assets and delivery mechanisms are managed by the Nuclear Command Authority under which the Strategic Force Command comes under.
2. Nuclear Command Authority is the policy directive arm (civil authorities) of the SFC.
3. SFC is headed by an Airforce officer but may come under rotation system.
Space Command
Cyber Command
Special Force Command
Civilian Control on Defence Forces
1.
2.
3.
4.
5.
Top structure is civilian.

All the ordnance depots are manned and controlled by the civilians.
DRDO is controlled by civilians.
Defence production is also headed by civilian authorities.
Defence budget is also decided by the civilian authorities. Defence accounts are also headed by the civilian authorities. Defence land is also controlled by the
civilian authorities (Defence Forces Estates Services). Armed Forces Headquarters Service is also a civilian bureaucracy.
6. The highest level where the 3 defence chiefs meet without any civilian representation is the CoSC level. Beyond this all committees have civilian
representation.
7. Power of the civil authorities to call defence forces for help under certain circumstances.
Role of Defence Forces in Aid to Civil Power
1. This is a statutory power given to civilian authorities (to call defence forces for help). But once called in, all operations are commanded by the defence
forces only.
2. Civilian authority can seek any help from the troops under following circumstances:
1. To maintain law and order.
2. To maintain essential services.
3. To assist the civilian authority during natural calamities.
4. Any other assistance that may be asked for by the competent civilian authority.
3. Principles governing calling the defence forces by the civilian authorities:
1. Principle of necessity. The necessity should be such that it demands calling of the armed forces.
2. Principle of minimal force. In case there is a threat and a force has to be applied, then minimum sufficient force should be used.
3. Principle of impartiality. When the troops are called in, they shall function in an impartial manner. Can't be called to quell political protests as the
Egyptian army demonstrated.
4. Principle of good faith. No malafide intention in calling the defence forces.
Role of Defence Forces in UN Peace Keeping Force
Role of Defence Forces in Internal Security
AFSPA, 1958
Provisions
1. AFSPA provides armed forces extensive powers including:
1. Shooting to kill merely on grounds of suspicion and search and arrest without warrant on suspicion only.
38/97
7/7/2014
Evernote Export
2. Destroying the arms stores, hideouts, shelters, training camps on suspicion only.
3. Any person arrested and taken into custody shall be handed over to the officer in-charge of the nearest police station at the soonest.
2. It was intended to give immunity to armed forces during their operations against any genuine mistakes. However it has been misused extensively in Kashmir
even outside their duty.
3. Criminal proceedings against Armed Forces personnel can only be carried out on the permission of Defence Ministry and that against the para-military
personnel can be carried out on the permission of the Home Ministry.
Disturbed Areas Act (DAA)
1. Only the parliament has the power to declare any territory as "disturbed" though in Kashmir both the Governor and the President have this power. The
constitutionality of the act was challenged before the SC in a Nagaland case. SC rejected the contention of arbitrariness by saying that for declaring any area
as "disturbed area", there must exist a grave situation of law and order. The other conditions under which it is invoked are:
1. The scale of unrest is to big and the local administration and the police force must have failed to tackle the issue.
2. A withdrawal of the central forces from the disturbed area will lead to the return of the miscreants.
2. Disturbed
Areas
Act
(DAA)
was
enacted
in
1990 was initially extended to Kashmir valley. AFSPA was also extended to fight militancy. Later various districts of Jammu were brought under it too.
3. The extension of this Act is subject to judicial review. But the acts done by Army under the AFSPA remain immune even if DAA is revoked.
Proposed Amendments
1. Establishing a proper grievance redressal mechanism to investigate genuine complaints.
2. Power to arrest without warrant to be taken away.
3. Immunity can't be invoked if death was due to armed forces opening fire first.
SC Judgement on AFSPA
1. It addressed the issue of need for sanction to prosecute Army officers under AFSPA. CBI claimed that the people who were killed were indeed victims of
fake encounters. The CBI moved the court to initiate prosecution against the accused Army officers. The officers claimed that they could only be prosecuted
with the prior sanction (permission) of the central government. It must be noted that Army officers can be tried either before criminal courts or through
court-martial. The Army officers had appealed that both procedures require prior sanction of the government.
2. The judgment reiterated an earlier ruling. It held that sanction would not be required in all cases to prosecute an official. The officer only enjoys immunity
from prosecution in cases when he has acted in exercise of powers conferred under the Act. There should be reasonable nexus between the action and
the duties of the official. The Court cited the following example to highlight this point: If in a raid, an officer is attacked and he retaliates, his actions can be
linked to a lawful discharge of duty. Even if there were some miscalculations in the retaliation, his actions cannot be labeled to have some personal
motive. The Court held that the AFSPA empowers the central government to ascertain if an action is reasonably connected with the discharge of official
duty and is not a misuse of authority.
3. At what stage is sanction required? The Court ruled that under the AFSPA sanction is mandatory. But, the need to seek sanction would only arise at the
time of cognizance of the offence. Cognizance is the stage when the prosecution begins. Sanction is therefore not required during investigation.
4. The Court ruled that there is no requirement of sanction for court-martial. If the Army decides on proceedings before the criminal court, the government will
have three months to determine to grant or withhold sanction.
Para-military Forces
The Assam Rifles
1. It is under the MoIA but functionally it is under the Indian Army. Its headquarters is in Shillong.
2. Their mandate is to manage the border in Myanmar, anti - drug trafficking and intelligence gathering.
Special Frontier Force
1. It was created after the Chinese aggression in 1962. It is a special force based in Uttarakhand (HQ at Chakrata). It was earlier under IB and later on shifted
under RAW. For day to day functioning, it is a part of the army.
2. The complete SFF is specialized in para-trooping activities. Their area of specialization is parachutes, jungle warfare, unconventional warfare, mountain and
arctic warfare, amphibious warfare. The entire force is airborne.
3. Its mandate is:
1. Spatial reconnaissance i.e. going deep behind the enemy lines to gather intelligence.
2. They can fight directly against aggression.
3. They are trained in rescue operations and hostage situations.
4. Counter terrorism.
Indian Coast Guard
1. Although it falls under MIA, it functions under the Indian Navy. It is tasked with safety of the coasts, guarding our EEZ, controlling marine pollution, illegal
immigration, human and narcotics trafficking, controlling illegal movement of foreign vessels. It is commanded by a naval officer.
Central Police Forces
NSA
Few Terms
Few Current Topics
Mandate
Issues
Governance and Polity

Created: 5/30/2013 1:16 PM
39/97
7/7/2014
Evernote Export
Source: file:///
Separation of Powers Between Various Organs
40/97
7/7/2014
Evernote Export
Electoral Reforms
Party Funding
41/97
7/7/2014
Evernote Export
1. Allow open contributions to individual candidates. Currently, our laws allow people to contribute to parties and not individual candidates. This only results in
centralising the control of party funds and weakening the connection between citizen and candidate.
2. Low limits ignore the numerous legitimate expenses associated with campaigning.
1. In the private sector, a marketing campaign aiming to reach 20 lakh people may cost at least Rs 100 per person. But to reach 20 lakh voters,
politicians cannot spend more than Rs 2 per voter!
2. Therefore, across the board, parties have tried to cope by favouring candidates with black money and the networks and capability to expend those
resources.
CBI Autonomy Affidavit

1. Executive interference
1. Accountability Commission: A 3-member Accountability Commission of retired Supreme Court judges to act as an independent ombudsman to
examine complaints against it. CVC will be its ex-officio member. It will insulate the CBIs probe from external influence and may also oversee its
investigation in certain circumstances. It will be mandated to inquire into allegations of misbehavior, impropriety against CBI officers including the
director.
2. Director of Prosecution: The director of prosecution, who reports to the law minister, will continue to have the powers to scrutinize CBI chargesheet
once the investigation is over. He will be responsible for prosecution of CBI cases and will continue to be appointed by the Centre on the
recommendation of a selection committee headed by the CVC. The other members of the committee will be the DoPT secretary, home secretary
and law secretary. The CBI director will be the member-convener of the committee.
3. CVC would have the power of superintendence and administration over the CBI for cases to be probed under the PoCA. The Centre would be vested
with the power in other matters.
2. Sanction
1. Proposal
1. It would be examined only by a committee of secretaries, including Secretary (Personnel), CVC, Secretary of the ministry concerned. It will
give a decision within 90 days post which sanction would be deemed given.
2. The order regarding sanction would also contain in detail the reasons behind the decision as well.
2. Current practice
1. The matter is first examined by the minister concerned and, after his refusal, comes to the committee of secretaries (not including the CVC).
Now ministers will be kept out of it.
2. There is no time limit for the grant / rejection of sanctions.
3. CBI director
1. Proposal
1. He would be appointed through a collegium consisting of the Prime Minister, the Leader of the Opposition in the Lok Sabha and the Chief
Justice of India.
2. His tenure would be a minimum of 2 years and he will not be transfered without the consent of this collegium.
3. Only the President would have the authority to remove or suspend the director, on a reference by the CVC for misbehavior or incapacity.
2. Current practice
1. A committee comprising the CVC, VCs, MIA secretary, and Public Grievances secretary takes into consideration the views of the outgoing
director and then recommends a panel of eligible IPS officers. The centre then picks one of the names.
4. Financial powers of the CBI Director
1. They would be increased at par with those of the head of the CRPF director general.
Separation of Powers: Legislature vs Executive

Office of Profit
1. Constitutional scheme
1. Legislators can't hold any office of profit under the government other than an office declared by the legislature by law not to disqualify its holder.
2. The underlying idea was to obviate a conflict of interest between executive duties and legislative functions. The principle is that such a person
cannot exercise his functions independently of the executive.
2. Misuse in India
1. In countries like Britain, such fusion of executive and legislature is not, by and large, leading to corruption or patronage. That is because such a
political culture has been evolved there.
2. In our case, public office is perceived to be an extension of ones property. That is why, sometimes, public offices are a source of huge corruption
and a means of extending patronage.
3. Constitutional provisions relating to office of profit have been violated in spirit over the years even when the letter is adhered to. Legislatures kept
on expanding the list of exemptions from disqualification only to protect holders of certain offices from time to time.
3. Recommendations
1. Often, the crude criterion applied is whether or not the office carries a remuneration. But the real criteria should be whether executive authority is
exercised by the office or not.
2. Committees of a purely advisory nature can be constituted with legislators irrespective of the remuneration and perks associated with such an
office.
3. But appointment in statutory or non-statutory executive authorities including positions on the governing boards of public undertakings with direct
decision making powers undoubtedly violate separation of powers.
4. If a serving Minister, by virtue of office, is a member of certain organizations like the Planning Commission, where close coordination and integration
with the executive is vital, it shall not be treated as office of profit.
MPLADS Scheme
1. The argument advanced that legislators do not directly handle public funds under these schemes, as these are under the control of the District Magistrate
is flawed. In fact, no Minister directly handles public money. Even the officials do not personally handle cash, except the treasury officials and disbursing
officers.
2. Making day-to-day decisions on expenditure after the legislature has approved the budget, is a key executive function.
42/97
7/7/2014
Evernote Export
3. These funds should have actually gone to the PRIs.
Dispute Resolution Mechanisms and Instiutions

Judiciary
Structure and Organization
Functioning
Judicial Reforms
Audio Recording of Court Proceedings
1.
2.
3.
4.
Argument is it could lead to swifter dispensation of justice.

If the government is able to provide the necessary infrastructure, then there is no problem. But doing so would be a big challenge.
Sometimes arguments in a single case go on for days. Recording such lengthy arguments, will it help?
Quality of audio recording is also an issue. So perhaps it should serve as a secondary tool and primary should remain the stenos.
Gag on Judges' Observations in the Judicial (Standards and Accountability) Bill

1. Sometimes, in order to elicit a good answer from the counsel, the judge may pose several questions. That does not mean that the judge is casting
aspersions. The effort is only to get the correct answer from the counsel.
2. The SC is trying to convey to the subordinate judiciary that the judge has to be interactive. Such a gag order goes against the spirit.
3. Unless a judge expresses his views, how will the arguing counsel know whether or not the judge is accepting his arguments.
4. The interaction between the judge and the counsel is not the decision of the judge. There is no need to flash news on the basis of what the judge observes
in court. What is needed is media code of conduct.
Issue of Judicial Overreach
1. When Parliament passes a law, somebody may approach a court and then the court has to see if the law is constitutional.
2. If there is no legislation on a particular subject, the court can suggest certain guidelines (for example, Vishakha guidelines).
3. This perception is growing because of the cases of alleged scams that are coming before the courts.
On the Collegium
1. Names of kith and kin of sitting and retired judges are routinely recommended.
1. Once the collegium makes its recommendation, the matter goes to the government, which can question any name and seek reconsideration. The
only thing is such objection must not be due to politics.
2. Extraneous considerations such as caste, religion, political considerations, personal quid pro quo have crept into the system.
3. The system is opaque, no one outside knows what criteria are there for selection.
4. The real issue is not who appoints the judges but how they are appointed. Irrespective of whether it is the executive, the judiciary or a commission, as
long as the process is opaque and appointments are made on personal considerations, we will continue to have variations of the same problems. The
crucial need is to evolve objective criteria and usher in transparency in the process.
5. Data relating to members of the judiciary seeking elevation to higher judiciary should be available online, available to the public.
6. We can follow a version of the UK system where all assessment criteria are well defined and assessment is evidence based. If there is not enough
evidence to support a person's candidature, he/she is not considered.
The Judicial Appointments Commission Bill, 2013
Establishment and composition of Commission
1. The Commission shall be chaired by the CJI and shall comprise of two other senior most Judges of the Supreme Court, the Union Minister for Law, and
two eminent persons to be nominated by the collegium.
2. The collegium comprises the Prime Minister, the CJI and Leader of Opposition of the Lok Sabha. The eminent members will retain membership for a three
year period and are not eligible for re nomination.
Functions of Commission
1. Its mandate includes recommending persons for appointment as Chief Justice of India and transfers of all judges.
2. The procedure for recommendation with respect to appointment of High Court Judges includes eliciting views of the Governor, Chief Minister and Chief
Justice of High Court of the concerned state, in writing.
Reference to Commission for filling up of vacancies
1. Upon the arising of a vacancy in the High Court and Supreme Court, references to the Commission shall be made by the Central Government.
1. In the case of vacancy due to the completion of term, reference shall be made two months prior to the date of occurrence of vacancy.
2. In the case of vacancy due to the death, resignation, reference shall be made within a period of two months from the date of occurrence of vacancy.
The Constitution (One Hundred and Twentieth
Amendment) Bill, 2013
1. The Bill seeks to enable equal participation of Judiciary and Executive, make the appointment process more accountable and ensure greater transparency
and objectivity in the appointments to the higher judiciary.
2. Amendment of 124 (2)
1. Providing for appointment of Judges to the higher judiciary, by the President, after consultation with Judges of the Supreme Court and High Courts
in the states.
3. Insertion of new article 124A to provide for
1. Parliament to make a law that provides the manner of appointment to higher judiciary.
43/97
7/7/2014
Evernote Export
2. Judicial Appointments Commission to be setup.
3. JAC law to lay down the following features of the Commission: (i) the composition, (ii) the appointment, qualifications, conditions of service and
tenure of the Chairperson and Members, (iii) the functions, (iv) procedure to be followed, (v) other necessary matters.
Ministries and Departments of Government

Structure and Organization
Governance Reforms
Strengths of the Existing System
1. Time tested system: Adherence to rules and established norms, well developed institutions.
2. Stability: Permanent civil service has provided continuity and stability during the transfer of power from one elected government to the other. This has
contributed to the maturing of our democracy.
3. Political neutrality: Many important institutions which are politically neutral have evolved.
4. National integration: Public servants working in Government of India as well as its attached and subordinate offices have developed a national outlook
transcending parochial boundaries. This has contributed to strengthening national integration.
Weak nesses of the Existing System
1. Undue emphasis on routine functions: The Ministries are often unable to focus on their policy analysis and policy making functions due to the large volume
of routine work. This leads to national priorities not receiving due attention.
2. Procedures and not outcomes are important.
3. Lack of separation of policy making, implementation and regulatory functions.
4. Proliferation of Ministries/Departments: The creation of a large number of Ministries and Departments has led to illogical division of work and lack of an
integrated approach even on closely related subjects. Ministries often carve out exclusive turfs and tend to work in isolated silos.
5. An extended hierarchy with too many levels: It leads to examination of issues at many levels causing delays, corruption and lack of accountability.
6. Risk avoidance.
7. Absence of coordination.
8. Fragmentation of functions: There has been a general trend to divide and subdivide functions making delivery of services inefficient and time-consuming.
Core Principles of Reforming Government Structure
1.
2.
3.
4.
5.
6.
7.
8.
Government should only focus on its core areas.

Decentralization based on the principle of subsidiarity.
Integration of functions and subjects. Subjects which are closely inter related should be dealt with together.
Separation of policy making from implementation: Ministries should concentrate on policy making while delegating the implementation to specialized
agencies.
Agency based system: Improved coordination. Agency based system should be created.
Reducing hierarchies. This will improve efficiency and accountability.
Flatter organizational structure for enhanced team work.
Increasing inter-ministerial coordination: It would also be unrealistic to expect for curtailment in the size of the Council of Ministers in an era of coalition
politics. Instead, a more pragmatic approach would be to retain the existing size but increase the level of coordination among the departments by providing
for a senior Cabinet Minister to head each of the 20-25 closely related Departments. Individual departments or any combination of these could be headed
as required by the Coordinating/First Minister, other Cabinet Minister(s)/Minister(s) of State.
Functioning
Pressure Groups and Formal / Informal Associations
Their Role in Polity
Media Reforms
TRAI Regulations
1. It plans to recommend the creation of an institutional buffer between corporate owners and newspaper management. This is to ensure that corporate
ownership of media must be separated from editorial management as the media serves public interest. There is no problem with corporates investing in or
owning media houses for profits. But the problem arises when the corporate wants to abuse the media it controls to project a colored point of view for
vested interests. There is conflict of interest here.
2. TRAI will also suggest ways to restrict cross-media ownership in line with practices in most other democracies. Certain media houses have interests in all
forms television, print, and radio which led to horizontal integration. TRAI is contemplating a two out of three rule, whereby a media house could
have interests in two of three mediums among print, TV or radio.
Statutory Bodies
Issues With Functioning of Statutory Commissions
Should Different Commissions be Merged with NHRC?
1. Idea is to merge all Commissions into a comprehensive Human Rights Commission with separate Divisions for Scheduled Castes, Scheduled Tribes,
Women and Children. Chairpersons of the NCM, NCSC, NCST and NCW are members of NHRC for the discharge of various functions except inquiring into
a complaint.
44/97
7/7/2014
Evernote Export
2. Yes - merge them

1. Overlapping jurisdictions and duplication
Multiplicity of commissions leads problems of overlapping jurisdictions and even duplication of efforts in dealing with complaints. Sometimes
different commissions may even contradict each other. Example is the clash between NCM and NHRC on Assam riots.
To prevent overlapping jurisdictions and duplication, laws are there. For example, NHRC cannot inquire into any matter which is pending
before a State Commission or any other Commission duly constituted under any law for the time being in force.
But in the absence of networking and regular interaction between different commissions, implementation of the law is difficult and duplication
exists especially at the preliminary stage.
There is a need to provide a more meaningful and continuous mode of interaction between the various commissions - both at the national
and the state levels. Common electronic databases and networks should be created. Common standards need to be defined.
3. No - don't merge
1. The existence of a different dedicated Commissions should enable each one of them to look into specific complaints and areas thereby ensuring
speedy action.
2. Merger in larger States and at the national level is impracticable and would fail to adequately address the special problems of different
disadvantaged groups. However, such a merger may be possible in case of some of the smaller States.
Limited Capacity of the Commissions
1. These institutions are handicapped because they receive a very large number of complaints while their capacity to deal with them is very limited.
2. These commissions have to depend upon the government to provide them with staff and funds. The secretariat of these commissions is not under their
control but under the executive's.
3. These commissions do not have adequate field staff, and mainly depends on temporary hires on contract basis for their work.
Lack of Institutionalization
1. The chairpersons role has been crucial in deciding the focus of each successive commission. Their functioning reflects the perception of the chairperson
about their role.
2. No mechanisms have been developed to institutionalise the body and each successive commission seems to be working more or less independent of the
previous one.
1. For example, in NCW the work on the Domestic Violence Bill was started in 1992-93; nothing was heard of it till the Annual Report of 19992000, which demanded a comprehensive legislation on domestic violence without reference to earlier processes.
3. Their recommendations have been more protective and rehabilitative in nature with little emphasis on the structural aspects. Any analysis of budgetary
allocations has been sadly lacking.
Process of Appointment
1. Clear and objective criteria are not laid down for the appointments to these commissions. Also the appointments are solely the prerogative of the executive
(except for NHRC and CVC where a selection committee is there but it is dominated by the executive) with nobody outside knowing on what basis such
appointments were made.
2. Over time, it has been observed that most of the appointments are politically motivated. There have also been issues like appointments of people with
serious corruption allegations against them. Activists with long track record of social work are not appointed while active politicians are. This compromises
on the autonomy.
Lack of Adequate Followup Mechanism on Recommendations
1. Lack of implementation powers
1. These Commissions can only make recommendations in their reports which are to be laid before Parliament.
2. Naturally their effectiveness depends on the action taken on such recommendations.
2. Long delays in laying down the reports in the parliament
1. The recommendations of the report are circulated to the concerned offices by the nodal ministry of the commission.
2. The comments furnished by them are included in the Action Taken Report, which is placed before the Parliament indicating whether the
recommendation is accepted or not accepted and, if accepted, what action is being taken. If no final decision has been taken on a particular
recommendation, the comment inserted is that it is under consideration.
3. Thus there is time lag between submission of the reports by the Commissions and their placement before the Parliament and quite sometime is
taken in collecting comments of concerned government agencies. The time lag in case of National Commission for SCs and STs is as long as
three years.
3. Government apathy towards the recommendations
1. Usually on the recommendations radically divergent from status quo, the bureaucratic tendency is to deflect or reject it. They don't even mention
the grounds for rejection in detail.
4. Parliamentary apathy towards the reports
1. By getting the reports laid down in the parliament, the idea was that during the discussion on the report, some MPs may raise the question of nonacceptance of important recommendations. The matter may even be picked up by the Media or civil society which may also build up public opinion
for its acceptance.
2. But the reality is that reports do not come up for discussion at all. This is partly because by the time reports are submitted with ATRs, they are
dated and at times lose their contextual relevance.
3. There is need for creating a separate Parliamentary Standing Committee for deliberating on the reports of these Commissions.
The National Human Rights Commission

Powers & Functions
1. Inquiry powers
1. To inquire, suo motu or on the basis of a petition or on a direction of a court, into a complaint of human rights violation.
2. With regard to inquiries into complaints, it has similar powers of a civil court i.e. summon attendance, require production of any document and ask
for oaths. Proceedings before it are deemed to be judicial proceedings.
3. Additionally, it can require any person to furnish information in relation to the inquiry.
4. It has search and seizure powers.
5. It can take aid of any government agency for its investigations upon their concurrence.
45/97
7/7/2014
2.
3.
4.
5.
6.
7.
8.
9.
Evernote Export
6. As an outcome of its investigation, it can recommend to the concerned government to pay compensation to the victim and/or to initiate prosecution
proceedings against the offender.
To intervene in any human rights case pending before a court. It may also approach the SC and the HCs for relief.
To visit any jail or any other state institutions to see the living conditions of the inmates and make recommendations.
To review the constitutional and legal safeguards for human rights and make recommendations.
To review the factors that inhibit human rights and make recommendations.
To study international treaties on human rights and make recommendations.
To promote human rights research.
To spread human rights awareness.
To encourage NGOs working for human rights.
Composition
1. The members are selected by a selection committee comprising of PM, speaker and deputy chairman, home minister, leaders of opposition in HoP and
CoS.
2. It consists of a retired CJI as chairman, a serving or retired judge of SC as member, one serving or retired chief justice of a high court, 2 eminent people
having knowledge and experience in human rights, chairpersons of minorities commission, SC commission, ST commission and women commission.
3. A NHRC chairman or a member can't be removed unless the president dismisses them on grounds of proved misbehavior ascertained by SC after the
president asks it to conduct an enquiry.
Positive Points of NHRC
1. Easy accessibility to the Commission. Anyone can approach NHRC through telephone, letter, application, mobile phone or internet. All the documents,
reports, newsletters, speeches, etc. of the Commission are also available on this website.
2. NHRC has worked immensely to create awareness among public through seminars, workshops, lectures, literature, NGOs. The rising number of complaints
on human rights violations only proves the fact that awareness is growing about NHRC.
3. The Commission has succeeded in getting the human rights education included in the curriculum.
4. Many recommendations made by NHRC have been implemented by the public authorities. These include bonded and child labor, narco analysis, mental
health, manual scavenging, endosulfan, rights of physically challenged etc.
5. The Commission has been instrumental in persuading states to set up Human Rights Commissions and twenty states have set up the State Human Rights
Commissions.
Negative Points of NHRC (UN Panel)
1. The lack of pluralism in its composition: There is dominance of the judiciary in its composition. The UN panel rejected the suggestion that such
restrictions were justified because of the quasi judicial functions performed by the NHRC. Pointing out that this is "but one of the 10 functions" enumerated
in the NHRC law.
2. Lack of independent investigation: 2 key posts in the NHRC secretary general and director general of investigations would have to be filled by those
who come on deputation from within the government. Complaints given to the NHRC were entrusted to the police which either didn't investigate at all or
investigated after substantial delay and in a biased manner.
3. Little engagement with human rights defenders.
4. Lack of independence: The NHRC is currently required to report to the Ministry of Home Affairs. There are serious question marks over the selection
process.
The National Minorities Commission
Composition
1. It consists of a Chairperson, a Vice Chairperson and five Members to be nominated by the Central Government from amongst persons of eminence;
provided that five Members including the Chairperson shall be from amongst the minority communities.
Powers and Functions
1. To review the constitutional and legal safeguards for minorities and make recommendations.
2. Inquiry powers
1. To inquire, suo motu or on the basis of a petition or on a direction of a court, into a complaint of human rights violation.
2. With regard to inquiries into complaints, it has similar powers of a civil court i.e. summon attendance, require production of any document and ask
for oaths. Proceedings before it are deemed to be judicial proceedings.
3. Additionally, it can require any person to furnish information in relation to the inquiry.
4. It has search and seizure powers.
5. It can take aid of any government agency for its investigations upon their concurrence.
6. As an outcome of its investigation, it can recommend to the concerned government to pay compensation to the victim and/or to initiate prosecution
proceedings against the offender.
Specific Constitutional Safeguards for Minorities
1. Art 29 (1): Right of any section of the citizens to conserve its distinct language, script or culture.
2. Art 29 (2): Restriction on denial of admission to any citizen, to any educational institution maintained or aided by the State, on grounds only of religion,
race, caste, language or any of them.
3. Art 30 (1): Right of all minorities, whether based on religion or language, to establish and administer educational institutions of their choice.
1. They are exempted from the admission policies of the state even if aided.
2. They are exempted from RTE.
4. Art 30 (2): Freedom from discrimination on the ground that any educational institution is under the management of a minority, in the matter of receiving aid
from the State.
5. Art 31: If any land is taken from a minority institution, then full compensation is payable.
6. Art 347: Special provision relating to the language spoken by a section of the population of any State.
7. Art 350 A: Provision for facilities for instruction in the mother-tongue at primary stage.
8. Art 350 B: Special Officer for Linguistic Minorities.
46/97
7/7/2014
Evernote Export
National Commission for Women

Composition
1. It consists of a chairperson and 5 members of eminence (all appointed by government) and at least one will be from SC and one from ST.
Powers & Functions
1. It monitors working of safeguards and laws for women and make recommendations.
2. It investigates complaints (including suo moto). While investigating it has all the powers of a civil court i.e. summoning presence, requiring production of
evidence, ask for oaths and affidavits.
3. It inspects jail and other state institutions to see the condition of women inmates and make recommendations.
4. It funds litigation in issues involving large number of women.
5. Its reports are laid down before parliament (state legislature if a state is concerned) along with explanation on action taken and reasons of non-acceptance.
6. To promote awareness on women issues.
7. To promote research on women issues.
8. To encourage NGOs working on women issues.
9. The NCW is to be consulted by the government on all important policy issues concerning women. It is to participate and advise in the planning process on
issues concerning women.
Report Card of NCW Functioning (apart from the common issues)
1.
2.
3.
4.
5.
The denial of the scale and nature of sexual violence in Gujarat 2002.
The statement of a member of the commission on the Mangalore pub attack case.
The statement that being called sexy should be taken as a compliment.
The statement asking girls not to ape the west blindly after a girl was publicly molested in Guwahati.
On AFSPA and police violence, all commissions have been sadly silent.
CIC
47/97
7/7/2014
Evernote Export
Issues with CIC

1. A high number of cases are pending before the CIC. Information sought through RTI applications is often most relevant at a particular time. If an appeal
before the CIC routinely takes more than a year to be heard, citizens may not find it imperative to turn to it.
2. Another problem is the CICs inability to ensure compliance with its orders. The CIC does not have contempt powers and the only way in which it can
ensure compliance is to use its power to impose a penalty.
Bringing Political Parties Under RTI

The Order
1.
2.
3.
4.
It ruled that political parties are public authorities under RTI.

The national parties should appoint mandatory information authorities.
They should also disclose information under relevant sections of RTI.
The decision would definitely have been encouraged by the trust deficit the general public has with politicians and the political parties.
The Rationale Behind the Order

1. Political parties perform public duty.
2. Public funding
1. The act states that a non-government organisation substantially financed, directly or indirectly by funds provided by the appropriate government, is
also included in the definition of a public authority.
2. They receive substantial public funding in the form of subsidised land and building, income tax exemptions, free airtime on radio and TV.
3. Established by Election Commission
1. The Act of states that any institution can be declared a public authority if it is established through the Constitution, legislative action or by
notification by an appropriate government.
2. CIC interpreted the term appropriate government as the Election Commission whose registration is needed for a political party to be recognized as
such.
Order is Good
1. Transparency will increase the confidence of the people in public institutions. Citizens should have a right to know about the political parties which run
their government.
2. It will also strengthen intra party democracy.
3. It has been argued that political parties will now have to be accountable to the commission. The RTI is a citizen empowerment tool, not a commission
empowerment one.
Order is Bad
1. Issues in enforcement
1. There is limited scope for the enforcement of the penalty clauses.
2. The person who would be appointed as PIO would hardly be dependent upon monthly salary and his work as PIO will not determine his career
progression in politics.
3. Therefore, a maximum penalty of Rs 25,000 would hardly act as a deterrent. Nor will there be any fear of jeopardising his career in politics.
4. If persons with criminal records are appointed PIOs, who will dare approach them for accessing information.
2. Counter action by parliament
1. Parties may bring an ordinance or pass an act to overturn this order.
48/97
7/7/2014
Evernote Export
3. Impractical
1. RTI makes extensive demands on public authorities for not just financial transparency but also transparency of decision-making and exercise of
authority. In the case of political parties, financial transparency must be separated from decision-making and other processes of a political party.
2. RTI, without accompanying electoral reforms, will adversely affect cash contributions or will further discourage parties from reporting them.
RTI Ruling as a Window of Opportunity for Electoral Reforms
1. RTI, without accompanying electoral reforms, will adversely affect cash contributions or will further discourage parties from reporting them.
2. If political parties are so vital to India's democratic functioning that they can be considered public authorities, then it is only logical that the state should
fund them in a befitting manner.
3. State funding will strengthen less wealthy but more worthy activists when they demand party tickets.
4. With regards to costs, state funding cost estimates have ranged from only Rs. 5,000 crores to Rs. 10,000 crores.
5. Further, parties should only be able to receive state funding if they meet some criteria of transparency and accountability this will spur them to improve
their internal processes including record-keeping and disclosure.
6. Germany provides parties matching grants, to the extent of the amount they raise from private sources. It does not limit contributions or expenditure, and
requires disclosure of only large donors. Over time, this has resulted in parties raising private funds mostly through small contributions and membership
dues.
National Commission for Protection of Child Rights (2007)

Functions and Powers
1.
2.
3.
4.
To review the safeguards for protection of children and make recommendations.

To inquire into complaints (suo moto also) and make recommendations.
To visit any juvenile home or other state / NGO institutions meant for children to see the condition of inmates and make recommendations.
Its other powers are same as NCW.
National Consumer Disputes Redressal Commission

CVC
Appointment
1. The selection committee consists of the Prime Minister, the Home Minister and the Leader of the Opposition in the Lok Sabha.
Power, Functions and Responsibilities
1. The CVC advises the union government on all matters pertaining to the maintenance of integrity in administration.
2. It exercises superintendence over the working of the CBI in cases referred to it.
Regulatory Bodies
Indian Medical Council
Appointment
Quasi-Judicial Bodies
The Press Council of India functions under
the Press Council Act, 1978. It is a statutory, quasi-judicial body
Appointment
Important Aspects of Governance
Transparency and Accountability
Citizen Charters
E-Governance
m-Governance
49/97
7/7/2014
Evernote Export
Applications
E-Governance is Not About 'e', its About Governance
Computerisation of Land Records
Land Records
This issue is back on the agenda now because of two main reasons. First, land markets in several parts of the country have exploded. Land prices in these
regional markets all of urban India and large rural areas like Punjab and Haryana are the highest in the world. Generating revenue from this market is now a
serious concern again. Second, the old process of land acquisition has broken down. The state has been forced to develop a new land acquisition bill (circulating
for two years now). Private sector players are demanding ever larger quantities of land for purchase or acquisition. The entire process of land conversion from
agricultural to other use is held up if land titles are unclear or disputed.
There is a real possibility that a process that tries to formalise land title claims may unleash disputes and litigation on a massive scale. Many conflicting claims of
land ownership remain simmering. Rivals often work out informal arrangements, avoiding full-scale legal disputes. But if the situation changes if the claims
have to be settled one way or another because they have to be inscribed for good on maps and cadastres that represent finality, a permanent settlement so to
speak, then every simmering and "adjusted" dispute has to come out in the open. Because anyone who does not stake a claim then will for ever lose her claim.
1. Project
1. Torrens system is based on 4 principles:
1. Principle of a single window to handle land records.
2. The mirror principle, which states that, at any given time, land records mirror the ground reality.
3. The curtain principle, which refers to the fact that the record of title is a true depiction of the ownership status, mutation is automatic
following registration and title is a conclusive proof of ownership.
4. Principle of title insurance - the title is guaranteed for its correctness and the party concerned is indemnified against any loss arising
because of inaccuracy in this regard.
2. The aim was complete digitization with extensive surveys by the end of 12th FYP and Torrens system by the end of 13th FYP.
2. 2 major problems remain. Firstly, the maps in use are totally outdated and secondly, the titles indicated in relation to the land are not up-to-date.
3. Several departments are involved in managing land records in most of the States, and the citizen has to approach more than one agency for complete land
records, e.g., Revenue Department for textual records and mutations; Survey & Settlement (or Consolidation) Department for the maps; Registration
Department for verification of encumbrances and registration of transfer, mortgage, etc. These departments work in a stand-alone manner, and updating of
records by any one of them makes the records of the others outdated.
4. The programme includes two CSS:
1. Strengthening of Revenue Administration & Updating of Land Records
2. Computerization of Land Records.
3. The major components of the programme are computerization of all land records including textual and spatial records and mutations, survey/resurvey and updation of all survey & settlement records.
Status
1. In most States, land record computerization has been limited to the issue of Records of Rights (RoR). Mutation, which is a more complex process,
has been computerized in only a handful of states. No State in India has reached a stage which integrates the functioning of the 3 departments.
2. Outdated records were being computerized and scanned.
3. Even basic computerized delivery has not reached the entire population. It is restricted to taluka level and many districts continue in manual mode.
Analysis of failure
1. The scheme failed to address the main problem in case of land records i.e. the land records do not reflect the factual ground reality.
50/97
7/7/2014
Evernote Export
2. The most important activity for updation of land records, i.e., survey was neglected by most of the States.
3. Modern technology can be of assistance in quickly carrying out the measurements of land. But, unless mechanisms are put in place to ensure that
any change in titles is quickly captured by the land records, any amount of ICT would not provide optimal solutions. Therefore, the existing
mechanism for updating land records which includes multiplicity of departments and obsolete processes would need to be reformed.
4. There are bound to be disputes where land titles are concerned. All state land records laws provide for a dispute resolution mechanism the
revenue courts. Over time, the functioning of this mechanism has left much to be desired. There is urgent need to build the capability of this
mechanism.
5. In many cases, even basic process reforms like simplification and rationalizing of forms, and putting in place an appointment and queue
management system have not been undertaken.
6. Computerisation of existing land records without corroborating it with the actual field position only led to perpetuation of existing loopholes and
errors and hence more litigation. So the scheme failed to even take off.
7. Funds were thinly spread.
8. There was no time frame to finish the scheme.
9. System of monitoring and evaluation was not provided for.
10. In case of urban lands, the situation is graver as records are virtually non-existent. The NLRMP does not cover urban lands. Growth in urbanization
would result in continuous conversion of rural land into urban land. Thus, there cannot be two systems for management of rural and urban lands.
Passport & Visa MMP
1. In the case of passports, the reduction in the waiting time is very marginal as only submission of application was partially computerized leaving
most of the back-end process in their old inefficient form.
2. Passport Seva Project: It contracts private service providers for digitisation of the entire passport services. It is expected that the process for issue
of a new passport would be expedited to three working days subject to police verification. Passports applied under the tatk al scheme would be
dispatched the same day, subject to address and police verification. While the Ministry of External Affairs (MEA) would continue to perform the
sovereign function such as verification and grant of passport, all peripheral activities would be done by the private service provider.
National E-Governance Plan
1. Role of local governments
1. There is no role for the local governments in the implementation of the plan and not even at kiosk level.
2. Monitoring bodies of elected local body representatives should be set up to monitor the implementation of the plan.
3. PRIs should also spread awareness among the people about the services being offered and encourage them to utilize them.
2. Business process restructuring and capacity building issues
1. The MMPs have the potential of creating a direct impact on citizens since they provide high volume G2C services. Unfortunately, these are
the very sectors where progress in implementation is lagging.
2. The most critical bottleneck is delay in business process restructuring and insufficient capacity building.
3. The large scale of the transactions involved, prevalence of outdated and cumbersome procedures, inertia and resistance to change, the
overhang of old and outdated records are other issues.
3. Project management issues
1. There is lack of clear demarcation of responsibility among the project authorities
2. Most of the State level e-Governance projects are still at the conceptual stage.
1. Many of the projects have pre-maturely gone ahead with the ICT component without first prioritizing the governance reforms that are a
pre-requisite. This would result in automation of the existing inefficiencies in the system .
Core Principles for a Successful E-Governance Project

1. Public trust
1. Clarity of Purpose
It should be based on what citizens need rather than what the technology can achieve.
2. It must deliver substantial visible benefits, specially single window grievance redressal as in LokVani in UP, Gyandoot in MP or single window
facility to pay taxes and bills, to the end users.
3. Benchmarks for service delivery need to be created and communicated to the users.
4. It must have mechanisms to win public trust like giving them a chance to review the computerized records, having a screen facing them, use of local
language.
2. Accountability
1. People must be held accountable for their actions.
2. Proper security mechanisms, including digital signature, biometrics as in the Bhoomi Project in Karnataka, should be there at each layer so as to fix
accountability.
3. Scope of the project
1. Fearing that new systems may not deliver, managers tend to continue manual systems in parallel, and thus there is no incentive for staff to switch
over to the new system. But it must not run as a secondary system, along with the paper based system. Rather focus must be to make it the only
system as soon as possible.
2. Scaling up should be attempted only after the success of pilot projects. Systems should have the flexibility to incorporate changes mid-way
3. The user charges should not be high so as to deter the users. Still self-sustainable projects have a higher chance of success.
4. Project management
1. Implementation
The project management team must have an empowered leader with a dedicated team. Such a team must be given sufficient time to finish
its work.
2. Planning
E-preparedness of the organization must be kept in mind while planning for projects and fixing time frames.
Reinventing the wheel should be prevented. Projects must learn from the success and failures of the previous e-governance processes.
At present various projects are ad hoc and unrelated to each other. Many are vendor driven and not scalable. So common standards and
platforms should be evolved.
3. Evaluation
There should be a precise definition of the parameters against which any future evaluation would be done.
Periodic evaluations against such parameters should be conducted.
5. Process re-engineering
1. Environment building
Assessment of changes to be made in the legal framework needs to be done in advance.
As the task involves redesigning of governmental processes at various levels, it would require strong political support at all levels.
51/97
7/7/2014
Evernote Export
Government personnel would have to be incentivised to change old habits and acquire new skills. Ownership by the staff is essential and
adequate stress should be laid on generating interest among the staff members.
Organizational capacity building is absolutely essential. It includes reforms in recruitment and personnel policies, out-sourcing, re-engineering
internal processes, delegation of authority, creation of enabling legal framework, developing MIS and proper incentive systems.
In the public, awareness needs to be created so that there is a constant demand for reforms.
Effective grievance redressal mechanism needs to be built in the process.
2. There should be end to end computerization. But in projects such as payment of bills, filing of returns, e-procurement, waiting for computerization
in government departments is not needed to start the project.
3. G2B projects
Entire e-procurement processes must be designed to avoid human interface i.e., supplier and buyer interaction.
They must provide anonymity and level playing field to all vendors.
There should be automatic bid evaluation based on the evaluation parameters given to the system to eliminate subjectivity.
Tender documents containing all details are hosted on the website and be freely downloadable by all.
They don't require extensive back end computerization and hence can be easily taken up.
6. Supporting infrastructure
1. Power supply, literacy, connectivity, and backend support are the essential pre-requisites.
2. Adequate redundancy and backups should be provided specially to meet with disaster challenges.
Personnel Issues in Implementation of E-Governance Projects
1.
2.
3.
4.
5.
Threats of job losses increase resistance.

Employees resist retraining.
Government staff may resent external staff. It helps a great deal if external staff have the time and patience to talk to employees.
High level support doesn't ensure staff buy in. Staff can come in only when they see benefits from moving to a new system.
Staff are unenthusiastic when credit is not shared: A common perception is that an e-government project is an IT department project and if the project is
successful, the IT department will get all the credit.
6. Fearing that new systems may not deliver, managers tend to continue manual systems in parallel, and thus there is no incentive for staff to switch over to
the new system.
E-Mitra Project in Rajasthan

1. There are two major components back office processing and service counters. Back office processing includes computerization of participating
departments and establishing a mini data centre at the district level. Private partners (Local Service Providers) run the kiosks/ service counters.
2. It is in PPP mode. In case of collection of bills, the Local Service Provider does not charge the citizen, but gets reimbursement from the concerned
organization.
National e-Governance Plan

Project
1. It comprises of 31 Mission Mode Projects (MMPs) and 10 components. Various MMPs are owned and spearheaded by the concerned ministries.
2. Physical Architecture
1. Data Centers
2. NoFN - 2Mbps network connectivity to each Panchayat.
3. Kiosks at the front end. 1 for each 6 village cluster following honey comb structure. Kiosks to have a PC along with basic support equipment like
printer, scanner and UPS.
3. G2C Services to be Offered
1. Land records
2. Registration of vehicles
3. Issue of certificates
4. Employment exchange
5. Ration cards
6. Electoral services
7. Pension schemes
8. Issue of licenses
9. Public grievance
10. Payment of bills
Mission Mode Projects
1. MCA 21: The MMP is in its post-implementation stage and is providing electronic services to the Companies for their related activities such as allocation
and change of name, incorporation, online payment of registration charges, change in address of registered office, viewing of public records and other
related services. It also makes public the company related data.
2. Pension: A website provides updated information on government pension rules and regulations; helps facilitating registration of grievances; enables
monitoring timely sanction of pension; maintains a database of pensioners.
3. Income Tax: It offers services including facility for downloading of various forms, online submission of applications for PAN, tracking the applications, efiling of Income Tax Returns, e-filing of TDS returns, online payment of taxes, issue of refunds.
4. Passport, Visa and Immigration: The e-services being offered under the MMP include re-issue of Passport, issue of duplicate Passport, issue of Tatkal
Passport, change in name, address, ECNR/ ECR suspensions, passport status enquiry etc.
5. Central Excise: The important e-services being offered include e-filing of Import and Export documentation, electronic processing of declarations, facilities
for e-filing of Central Excise and Service Tax returns, e-registration services, digital signatures, e-payment of Customs Duties.
6. Banking: It includes Electronic Central Registry and One India One Account for Public Sector Banks.
7. UID.
8. e-Office: The functioning of government offices would be computerized.
9. Insurance: The MMP is an industry initiative (by public sector insurance companies). The MMP aims at facilitating customer services, automating
52/97
7/7/2014
Evernote Export
grievance redressal mechanism and, creating a database.
Integrated MMPs
1. e-Courts: The first phase includes building computer infrastructure in the lower courts and upgrading it at High Courts and the Supreme Court. The second
phase of the MMP includes providing services like availability of copies of judgments, e-filing of cases, video conferencing of outstation witnesses, issue of
notices to clients through e-mail.
2. Electronic Data Interchange/e-Trade (EDI): It aims at facilitating electronic data interchange amongst various agencies involved in the process of imports
and exports. It offers services like electronic filing and clearance of EXIM documents and e-Payments of duties.
3. India Portal: It provides a single window access to information about governments at all levels, in a multilingual form.
4. e-Procurement: This MMP of the Ministry of Commerce aims at rolling-out IT-enabled procurement by government departments.
5. Road Transport: This MMP proposes to offer many e-Services like vehicle registration, driving licenses and Smart Card based registration certificates to
citizens.
6. Agriculture: The MMP aims at providing information regarding farm practices, market trends, agricultural and technical know-how. It has two components
i.e. AGRISNET and AGMARKNET. AGMARKNET aims at creating an information network which will capture/update information at various
mandis. AGRISNET aims at back-end computerization of State Agriculture departments
7. e-District: This MMP aims at delivery of high volume, citizen-centric services through kiosks. These would primarily be services not covered by other
specific MMPs. A minimum of 7 services will be delivered in every State.
Analysis of NeGP
1. The Institutional Structure
1. It has become essential to ensure that the numerous projects being implemented by the different governments and departments are consistent with
a broad policy and adhere to common standards.
2. This requires empowered institutional arrangements to oversee the projects.
2. Role of local governments
1. There is no role for the local governments in the implementation of the plan and not even at kiosk level.
2. Monitoring bodies of elected local body representatives should be set up to monitor the implementation of the plan.
3. PRIs should also spread awareness among the people about the services being offered and encourage them to utilize them.
3. Business process restructuring and capacity building issues
1. The MMPs have the potential of creating a direct impact on citizens since they provide high volume G2C services. Unfortunately, these are the very
sectors where progress in implementation is lagging.
2. The most critical bottleneck is delay in business process restructuring and insufficient capacity building.
3. The large scale of the transactions involved, prevalence of outdated and cumbersome procedures, inertia and resistance to change, the overhang of
old and outdated records are other issues.
4. Project management issues
1. There is lack of clear demarcation of responsibility among the project authorities
2. Most of the State level e-Governance projects are still at the conceptual stage.
3. Many of the projects have pre-maturely gone ahead with the ICT component without first prioritizing the governance reforms that are a pre-requisite.
This would result in automation of the existing inefficiencies in the system .
Status of Implementation
1. Status of MMPs: Out of the 31 MMPs, 14 MMPs are delivering the full range of services while 9 have started delivering some services to the citizens.
2. e-TAAL: It is a web portal which aggregates and analyses the statistics of e-governance projects including MMPs on a real time basis. It is expected to
enhance the outcome focus of e-Governance programs.
3. Mobile Seva: It is a unique countrywide initiative on mobile governance to provide public services to the citizens through mobile phones. As on date, 444
departments are on it offering over 200 services. A mobile AppStore has also been launched with 153 applications.
4. NoFN: Pilot has been conducted and rollout is in progress.
5. e-Gov AppStore: It will host successful e-governance applications which can be replicated by all government departments intending to implement e-Gov
initiatives, thereby saving immense time and costs.
6. e-Procurement: All departments have been directed to switch over to it.
7. Meghraj: This is the new Government of India cloud (GI Cloud) computing environment to be created at the national level. It will bring the benefits of cloud
computing.
8. National e-Governance Academy: To promote research, documentation, training, this academy will be opened.
53/97
7/7/2014
Evernote Export
Models
Successes, Potential and Limitations
Civil Services
Role in a Democracy
PRAKASH SINGH CASE
54/97
7/7/2014
Evernote Export
Relationship with the Political Leadership

Constitutionally Envisioned Scheme
1. The secretary has to advise the minister impartially and fearlessly and tell him about the legality of his orders and suggest that either such orders not be
given or that they be suitably modified.
2. The minister may have the mandate of the people to govern, but the secretary has an equivalent constitutional mandate to advise the Minister.
3. Once his advice has been suitably considered, unless the minister passes an illegal order, the secretary is bound to implement it without bias and fear or
favor. The minister, on his part, is required to support the secretary who is implementing his order.
Status
1. Loss of political neutrality
1. In the initial years after Independence, relations between Ministers and civil servants were characterized by mutual respect and understanding of
each others respective roles, with neither encroaching upon the others domain.
2. However, in subsequent years, matters started changing for the worse. While some civil servants did not render objective and impartial advice to
their Ministers, often some Ministers began to resent advice that did not fit in with short-term political interests.
3. There was also a tendency for some Ministers to focus more on routine administrative matters such as transfers in preference to policy making.
4. As a result, political neutrality which was the hallmark of the civil service in the pre-Independence era as well as in the period right after
Independence, was gradually eroded.
2. Discharge of delegated functions
1. There is an increasing tendency in government departments to centralize authority and also after having first delegated authority downwards, to
interfere in decision making of the subordinate functionaries.
2. There is a perception that downward delegation of responsibilities will lead to abuse and more corruption. But the correct way is to institute
mechanisms to prevent that.
Challenges
1. Defining accountability
1. Civil servants in India are accountable to the ministers, but in practice, the accountability is vague and of a generalised nature. Since there is no
system of ex ante specification of accountability, the relationship between the minister and the civil servants is essentially issue-sensitive and civil
servants deal with the ministers as the issues present themselves.
2. The accountability relationship can be anything from all pervasive to minimalistic and it is left to the incumbent minister to interpret it in a manner
that is most convenient to him/her. This leads to either collusive relationship or to discord, both of which can adversely affect the administration.
3. Thus there is an urgent need to codify this relationship preferably by enacting a law.
4. Accountability can be defined in the relationship only in an output - outcome framework. Outputs are specific services that the civil servants deliver,
and therefore, the civil servants should be held accountable for the delivery of key results, which becomes the basis for evaluation of their
performance. This can be achieved through agreements with the minister specifying the performance targets. These performance agreements
should be put in the public domain. They should have clearly spelt out objective and measurable goals.
5. Outcome is the success in achieving social goals and the political executive decides what outputs should be included so that the desired
outcomes can be achieved. In such a scheme, the political executive becomes accountable to the people for the outcome.
2. Transfers and postings
1. Arbitrary transfers and postings of civil servants by the ministers in utter disregard of the tenure policies, concern about disruption of public services
delivery, concern about implementation of developmental programmes. Such transfers are made on the basis of caste, religion, money,
favoritism. This leads to splitting up of bureaucracy and its demoralization.
2. Transfer and tenure policies must be developed in an independent manner and any premature transfer should be based on publicly disclosed sound
administrative grounds which should be spelt out in the transfer order itself.
55/97
7/7/2014
Evernote Export
3. An officer should be given a fixed tenure of at least three years and given annual performance targets.
4. Civil Services Authorities should be made statutory and autonomous. If the government does not agree with the recommendations of the Authority,
he will have to record his reasons in writing.
5. An officer transferred before his normal tenure can agitate the matter before an Ombudsman.
3. Ministerial interference in operations
1. Ministers issue instructions, formal or informal, to influence the decisions of the bureaucracy often intruding in their domains.
2. It has also been observed that officers, instead of taking decisions on their own, look up to the ministers for informal instructions.
3. Several states have created an institution of District Incharge Minister to review the development activities in the district who routinely exceed their
mandate intrude in the officers domain. These practices are unhealthy.
1. Appointments/Recruitment to the Civil Services
1. While the UPSC enjoys an untarnished reputation for having developed a fair and transparent recruitment system, the same cannot be said for
most of the SPSCs.
2. In addition, large number of recruitments is done by departments under their control of the government directly. It is essential to lay down certain
principles/norms for such recruitments.
Advantages of a Permanent Civil Service
1. The spoils system has the propensity to degenerate into a system of patronage, nepotism and corruption.
2. Public policy is a complex exercise requiring in-depth knowledge and expertise in public affairs. A permanent civil service develops expertise as well as
institutional memory for effective policy making.
3. A permanent and impartial civil service is more likely to assess the long-term social payoffs of any policy.
4. A permanent civil service helps to ensure uniformity in public administration and also acts as a unifying force particularly in vast and culturally
diverse nations.
Prosecution of Civil Servants

Article 311
1. No civil servant shall be dismissed by an authority subordinate to that by which he was appointed.
2. No such person shall be dismissed or removed or reduced in rank except after an inquiry in which he has been informed of the charges against him and
given a reasonable opportunity of being heard.
3. Provided further that this clause shall not apply
1. where a person is dismissed or removed or reduced in rank on the ground of conduct which has led to his conviction on a criminal charge; or
2. where the authority empowered is satisfied that for some reason, to be recorded by that authority in writing, it is not reasonably practicable to hold
such inquiry; or
3. where the President or the Governor, as the case may be, is satisfied that in the interest of the security of the State, it is not expedient to hold
such inquiry.
Art 309 and Art 310
1. Article 309: Legislature may regulate the recruitment and conditions of service of civil services.
2. Article 310: Civil servants hold office during the pleasure of the President / Governor.
Other Protections
1. CBI can not conduct any investigation except with the previous approval of the Central Government where such allegation relates to the employees of the
Central Government of the level of Joint Secretary and above or equivalent position in CPSUs.
2. Sanction for prosecution of a public servant is required from an authority not lower than that competent to remove him.
3. A case under the PoCA can only be registered by the CBI or the anti-corruption agency of a state and not by the civil police.
4. Only a special judge is competent to take cognizance of an offence of corruption.
Debate - Remove Art 311
1. Complicated procedures have arisen out of this article which have in practice shielded the guilty. These complicated safeguards also lead to inordinate
delays and render even most well meant legislations and institutions like CVC ineffective.
2. Judicial decisions too have crowded out the real intent of Article 311 and shielded the guilty. Procedure has become more important than the substance.
Removing the article would render such judgments void.
3. Such a provision is not available in any of the democratic countries including the UK.
4. This article was drafted at a time when due to post-colonial administrative upheavals, it was felt necessary to prescribe certain guarantees to the
bureaucracy. In the present scenario, this is not necessary. Government is no longer the only significant source of employment. Indeed, in the present
debate of even providing outcome oriented contractual appointments puts a question mark on the desirability of the permanency in the civil services. The
role of Government as a model employer cannot override public good.
5. When Sardar Patel argued for protection of civil servants, the intention was clearly to embolden senior civil servants to render impartial and frank advice to
the political executive without fear of retribution. But the compulsions of equal treatment of all public servants and judicial pronouncements have made
such a protection applicable to everybody and this has crated a climate of excessive security hampering efficiency and work culture.
Debate - Do not Remove Art 311
1. It subjects the doctrine of pleasure contained in the preceding Article 310 to certain safeguards and checks arbitrary action on executive's part. India
doesn't have a spoils system.
2. Safeguard of an opportunity of being heard has been held to be a fundamental principle of natural justice. It is argued that even if Art 311 is not there,
natural justice cannot be compromised and the aggrieved party can get relief from the courts. But experience of past 6 decades shows that executive has
scant regard for the spirit of the law and inordinate delays and large number of cases may arise out of the confusing situation.
3. The requirement that only an authority which is the appointing authority or superior can impose a punishment also appears reasonable as the government
follows a hierarchical structure.
4. It is the rules governing disciplinary enquiries, and not Article 311 itself, that are responsible for the delays.
56/97
7/7/2014
Evernote Export
The Balanced Approach

1. Article 311 of the Constitution should be repealed. Simultaneously, Article 310 of the Constitution should also be repealed. Suitable legislation to protect
civil servants from arbitrary actions of the executive should be provided under Article 309.
Debate - Need for Sanctions
1. Officers at senior levels have important decision making roles. While taking these decisions they should be able to do so without any fear. Exposing them
could have a demoralizing effect and encourage them most of the time to be risk averse.
2. It can be argued that if at all the sanction protection is to be given, the power should vest with an independent body like the CVC, which can take an
objective stand. So the government has decided to create a committee of secretaries involving the CVC to grant sanctions within 90 days beyond which
the sanction would be deemed to have been granted.
Removal from Service: Criminality vs Incompetence
1. The standard for probity in public life should be not only conviction in a criminal court but propriety as determined by suitable independent institutions
specifically constituted for the purpose .
2. It may not always be possible to establish the criminal offence in a court (for lowering service delivery standards in return of personal favors) but the
government servant can still be removed from service on grounds of incompetence.
Removal from Service: Criminality vs Administrative Action
1. Criminal conviction requires "beyond reasonable doubt". Administrative action does not require 'beyond reasonable doubt'. It requires "the preponderance
of probability." (A fair probability of corruption by the official is sufficient.)
Disciplinary Proceedings
1. Issues
1. "Inquiry" as prescribed under Article 311 which often tends to become like a full fledged court proceeding should be replaced by a meeting or
interview to discuss the charges made out against him.
2. Minor penalty can be imposed after calling for and considering the explanation of the accused employee. Major Penalties can be imposed only after
a detailed inquiry.
2. Recommendations
1. The new Civil Services Law should set out only the minimum statutary disciplinary and dismissal procedures required to satisfy the criteria of
natural justice leaving the details of the procedure to be followed to the respective departments.
2. The penalty of dismissal or removal of a public servant should only be imposed by an authority three levels higher than the present post held by that
public servant whereas all other penalties may be imposed by an authority who is two levels higher.
3. The charges against the government servant should be communicated to him in writing.
4. The inquiry process should be based to the maximum extent possible on documentary rather than oral evidence.
5. Fixed and brief time limits should be prescribed for admission and denial of documents from both sides followed by a meeting / interview to give the
government servant a chance to respond to the charges.
6. Preponderance of probabilities rather than beyond reasonable doubt would be the standard of evidence required for the inquiry authority to reach
his/her conclusions.
7. Imposition of major penalties should be recommended by a committee in order to ensure objectivity.
Issues in Civil Services Reforms

Attitudinal Issues
1. Issues
1. Civil servants still believe in the Hegelian prescription that they represent the universal interest of the society. Hegel argued that the most important
institution in the state was the bureaucracy which represented the absolutely universal interests of the state. The exercise of power by the
bureaucracy was a mission sanctioned by God.
2. It believes that its authority is derived not from the mandate of the people but from an immutable corpus of rules that it has prescribed for itself. It has
no need to give due regards to the aspirations of the people and rule of law.
3. With reforms, the role of private sector and civil society has increased immensely. So the civil servants need to view them as partners instead of
asserting their own pre-eminence.
Result Orientation
1. Issues
1. Civil Service in India is more concerned with the internal processes than with results.
2. There is too much focus on amount of inputs used - whether the full budget is used or not. As a result outcomes get neglected and civil servants are
not held accountable for the results.
3. The structures are based on hierarchies and there are a large number of veto points.
4. To compound it, the size and the number of ministries and departments have proliferated and diminished the capacities of the individual civil servants
to fulfill their responsibilities.
2. Recommendations
1. Devolution: Achievement of results would require substantial devolution of managerial authority to the implementing levels. This would require giving
civil servants in the implementing agencies greater flexibility and incentives to achieve results as well as relaxing the existing central controls.
2. Accountability: The counterpart of devolution should be more accountability. This can be achieved through agreements with the minister specifying
the performance targets. These performance agreements should be put in the public domain. They should have clearly spelt out objective and
measurable goals.
Resistance to Change
1. Issues
1. The perception is that they resist change as they are wedded to their privileges and prospects. Thus they have prevented us from realizing the full
57/97
7/7/2014
Evernote Export
benefits of the 73rd and 74th Amendments since it clashes with their own authority.
2. They also resist simplification of procedures which is a pre-requisite for introduction of e-governance since it would undermine their importance.
Accountability
1. Accountability mechanisms can be horizontal which refer to those located within the government and vertical which are those outside it and include the
media, civil society and citizens.
2. Disciplinary action against non performing officers is a rarity and is a long process.
3. The life-long job security further leads to distorted incentive structure.
4. While the performance of government organizations and their sub-units are periodically subjected to in-depth reviews, seldom are efforts made to link
organizational performance to the performance of an individual civil servant.
Exit Mechanisms
1. Issues
1. At present, rarely does a civil servant get dismissed from service or is punished on grounds of incompetence.
2. Recommendations
1. It is necessary that all civil servants undergo a rigorous assessment of performance, at regular intervals, and on the basis of such evaluation a civil
servant can be retired compulsorily. The compulsory retirement can happen say after 20 years.
2. New appointments should be made only for a fixed period, say 20 years, after which if the performance is not satisfactory, he can be removed. Such
provisions are there in armed forces.
Separation of Policy Mak ing and Implementation Task s
1. Issues
1. The policy formulation function of senior civil servants needs to be distinguished from the policy implementation function. Currently due to diverse
workload, their most important function, of tendering policy advice to the ministers, often gets neglected.
2. Recommendations
1. There is a need for a separation of policy formulation and implementation responsibilities by extensive restructuring.
2. Flatter structures and outcome oriented agencies need to be created and powers delegated downwards.
Field Postings of Officers during the Initial Part of Their Career
1. There have been instances where state governments have posted the officers during his early career to the Secretariat instead of the field. This is not in the
public interest since it is necessary for an officer to have adequate experience in the field. So no secretariat postings should be given for first 10 years at
least.
Domain Competency
1. Issues
1. The increasingly complexity of challenges today demand higher levels of knowledge and deeper insights from public servants. This would mean that
civil servants - especially in policy making positions - should possesses in-depth knowledge of the sector.
2. Domain competence is distinct from specialised technical knowledge in that it refers to a broad understanding of the relevant field and more
importantly managerial abilities derived from practical experience in that field.
3. There is considerable confusion about the concept of domain competence. It is generally discussed in the context of the ministry an officer may be
best suited for. Domain competence actually refers to functions and not Ministries.
2. Recommendations
1. Assigning specific domains to civil servants early in their career and retaining them in the assigned domain is an important reform.
2. Steps need to be taken to assign civil servants at the start of their mid-career to specific domains. Domain assignment at this stage of the career
would also be appropriate because when the officer is eligible to be at the level of Joint Secretary he/she would have had at least three to four years
exposure to a domain.
3. These domains should strike a right balance between flexibility and needs for specialized expertise and need to be defined suitably. Some domains
could be: general administration, urban development, rural development, security, financial management, infrastructure, human resource
development, natural resource management.
Deputation of Public Servants Into Private Sector
1. Conflict of interest possible even after retirement.
2. Quid pro quo assignments in private sector mean only a small number of civil servants holding assignments in certain sought after sectors will benefit. A
vast majority of civil servants, especially those working in the social sector and sectors like rural development, will perhaps not be affected by such a policy.
This could result in an increasing reluctance by government servants to work in these crucial social sectors.
3. In India, civil servants have created a number of post-retirement jobs, including those in regulators, which they can conveniently latch on to once they retire
from their jobs. This seems preferable to civil servants moving into the private sector.
Motivating Civil Servants
1. Issues
1. Civil servants today adopt a minimalist approach in their functioning, and confine their work to disposing of files making no special effort at resolving
problems. They rarely walk that extra mile.
2. There is hardly any performance for pay incentive available to them. Natural increases in salary are very much guaranteed to government employees.
This leads to a situation where employees do not exert themselves.
3. There is no external motivation for risk-taking and delivering a higher level of performance, because though the risk-taking is punished if things go
wrong, it is not rewarded if things improve.
4. Poor working conditions.
5. Unfair personnel policies.
6. Excess supervision.
7. Absence of fair-play and transparency in the government system.
8. Lack of opportunity for self-expression.
9. Political interference into officers' jurisdiction.
58/97
7/7/2014
Evernote Export
2. Recommendations
1. Performance based monetary incentives.
2. Recognition: Though national awards are given to those civil servants who have made outstanding contributions to public service but the criteria and
process are opaque and frequently misused. Padma awards should be given more frequently to serving civil servants. Selection for such awards is
made through an objective and transparent mechanism because the value of such awards should not get compromised by either subjectivity or lack
of transparency. Other awards should be instituted.
3. Job enrichment: Delegation should be made a part of the performance appraisal at each suitable level.
4. Linking career prospects with performance: Arbitrary political actions must stop.
Civil Services Bill

Draft Public Services Bill, 2007
1. Appointment to public services to be based on the principle of merit.
2. Transfers before the specified tenure should be for valid reasons to be recorded in writing. The normal tenure of all public servants shall not be less than
two years.
3. It proposes the constitution of a Civil Services Authority.
1. It shall aid and advise the Central Government in all matters concerning the management of civil servants.
2. Review the adoption, adherence to and implementation of the Civil Service Values and send reports to the Central Government.
3. Assign domains to all officers of the All India Services and the Central Civil Services on completion of 13 years of service.
4. Formulate norms and guidelines for appointments at Senior Management Level in Government of India.
5. Evaluate and recommend names of officers for posting at the Senior Management Level in Government of India.
6. Identify the posts at Senior Management Level in Government of India which could be thrown open for recruitment from all sources.
7. Fix the tenure for posts at the Senior Management Level in Government of India.
8. Submit an annual report to Parliament.
4. It includes public service values and the Code of Ethics.
5. The Bill enjoins government to prepare a Public Service Management Code with the aim to develop civil services into a professional, merit-based
institution, maintain high levels of excellence. It provides for ACRs to be made public. It provides for periodic pay and incentives review, training, guidelines
for promotions.
6. It enjoins the government to define the relationship between the political executive and civil services.
Desired Qualities of a Civil Services Bill
1.
2.
3.
4.
5.
6.
7.
It
It
It
It
It
It
It
acts as a legal basis for the legislature to express the important values and culture it wants in the civil service.
has a mechanism by which government decisions can be implemented.
has a framework for setting out the role and powers of the heads of the agencies and departments.
spells out the relationship between civil services and political leadership in a clear and transparent way.
lets civil servants know clearly what is expected of them.
deals with important aspects like transfers, performance management, civil services authority, postings, entry to senior executive service.
contains public service standards and ethical values and how they should be applied.
Analysis of the Draft Public Services Bill, 2007

1. Name: The term public servant has a much wider connotation. So the name of the Bill should be changed to Civil Services Bill.
2. Appointment to Public Services: It makes the principle of merit (subject to reservations), fair and transparent competition as the guiding principles for
appointments. It would be better to prescribe that all appointments including in PSUs, various boards, whether permanent or short-term or contractual
should be made on this basis.
3. Public service values and Code: The Bill can list down an exhaustive set of values clearly, currently it doesn't.
4. Performance management system: The Bill can lay down the guidelines and principles to be followed while devising performance management systems.
5. Functions of the Central Civil Services Authority: Its recommendations should be made binding. If the government rejects it, written reasons should be
given and made public.
6. Creation of executive agencies in government: Government should be authorized to create executive agencies. The role of the ministries should primarily
be on policy formulation while implementation should be left to the executive agencies.
Civil Services Authority
1. There should be an independent authority to deal with matters of assignment of domains, empanelment of officers, fixing tenures for various posts,
appointments and transfers, deciding on posts which could be advertised for lateral entry.
2. It should be given a statutory backing and clear objective criterion should be laid down for its membership. Serving government servants or politicians
should not be appointed to it.
3. The members should be appointed by a collegium in a transparent manner.
4. The authority should be given personnel and financial autonomy as well.
Placement at the Top Management Level

Senior Executive Service
1.
2.
3.
4.
5.
It
It
It
It
It
comprises of a group of civil servants who are appointed to top-level positions across ministries, departments and agencies.
usually occupies policy-making positions or heads major operating agencies or line departments.
works closely with the political executive.
constitutes a very small fraction of the civil service.
is bound by a distinctive set of ethical standards such as values and code of conduct.
Position Based SES

1. The position-based SES as in Australia, New Zealand, UK is more open because appointments to senior positions are made from a wider pool comprising
all civil servants as well as those applicants from the private sector. Its openness is its basic strength.
59/97
7/7/2014
Evernote Export
SES in India
1. Present system
1. India has a career-based SES system where SES consists solely of civil servants. At the early middle stage of their careers, the appointments to
the level of Joint Secretary in GoI are made based on the process of empanelment.
2. Weaknesses in the present system
1. It depends solely on the ACRs of the officers. It is widely known that there is a tendency for the reporting officers to adopt a soft approach in their
assessments with the deficiencies often going unreported.
2. By relying only on the ACRs, it overlooks the future potential of an officer.
3. Selection is made without either interviewing the officers or testing them formally.
4. Those who are not empanelled are not given any reasons and have no right of formal appeal.
5. An officer not empanelled as Joint Secretary normally spends the rest of his/her career in the state government and is not usually empanelled later
for Additional Secretary or a Secretary in the Government of India. By implication, the process suggests that officers who are not considered
suitable for working in senior positions in Government of India are considered good enough to work in the state governments. Promotions to senior
positions in the state governments are largely on the basis of seniority, and there is often insufficient consideration of merit or performance.
3. Advantages of a career based system in general
1. Its closed nature develops a common value system and camaraderie which facilitates excellent communication across the
2.
governmental spectrum.
Senior positions require a unique mix of specialized knowledge, general administration and field level experience in
implementation. While making policies, their implementation issues must be kept in mind. Career based SES provides this
unique mix.
4. Weaknesses of a career based system in general

1. The assurance of a secure career path has been held to be the career-based systems biggest lacuna.
2. It has discouraged initiative by reducing competition in the higher echelons of government.
5. Reforms suggested
1. It has been argued that lateral entry from the market should also be encouraged at the higher management levels as this would bring in corporate
exposure as well as specialized knowledge which may not always be available with career civil servants.
2. Domain competence should also be considered for postings at the joint secretary level.
6. Weaknesses of a progress based SES in general
1. Lack of sufficient and suitable talent in the private sector.
2. Operational difficulties of fresh recruitment for SES and consequent demoralization of the civil services.
3. Potential conflict of interest between the private sector and the public sector.
Performance Management System

Present System of Performance Management in Government
1. Focus on inputs
1. Systems in government are oriented towards input usage- how much resources, staff and facilities are deployed and whether such deployment is in
accordance with rules and regulations. The main performance measure thus is the amount of money spent and the success of the schemes,
programmes and projects is generally evaluated in terms of the inputs consumed.
2. This fails to take into account the results obtained. Civil servants are rarely held accountable for the outcomes.
2. Conventional closed system of ACR
1. The significant feature of this method is the complete secrecy of the exercise, both in process and results and only adverse remarks are
communicated to the officer.
2. It lacks in quantification of targets and evaluation against achievement of targets.
3. Unclear performance standards, possible bias, political influence mean a state of confusion. Performance appraisal forms are generic.
4. It becomes meaningless in cases where postings are decided on other factors and there are frequent transfers.
5. No attempt is made to align personal goals with the departmental goals.
6. Large span of supervision of government officers means writing the ACRs of so many officers who they may not even personally recognize.
7. Since the present system shares only an adverse grading, a civil servant remains unaware about how he/she is rated in his/her work.
8. Many reporting officers pay little attention to distinguish good and average workers while grading them. Consequently, most Government officials
end up getting very good/outstanding grading which is considered good for promotion and hence there is no motivation for real performers.
9. The system of deciding on representations against an adverse entry sometimes take so long that reporting officers avoid giving an adverse entry.
Many a time, for want of evidence against the reported civil servant, the reporting officer is in a defensive position and thus unable to justify his/her
adverse remarks.
Reforming the Existing Personnel Performance Appraisal System
1. Making appraisal more consultative and transparent.
1. Consultations while goal setting in the beginning of the year.
2. Quarterly / mid year reviews and path correction.
3. Full annual performance appraisal report including the overall grade and assessment of integrity should be disclosed.
2. Performance appraisal formats to be job specific
1. The performance appraisal format should have three sections - (i) a generic section that meets the requirements of a particular service to which the
officer belongs, (ii) another section based on the requirements of the department in which he is working, and (iii) a final section which captures the
specific requirements and targets relating to the post that the officer is holding.
3. Formulating guidelines for assigning numerical rating
1. The present system follows a grading system that rated officers in categories ranging from average, good and very good to outstanding.
2. The new PAR format for All India Service Officers replaces this with an improved rating system wherein officers are assigned a numerical grade from
0 to 10 for different parameters.
3. While this is an improvement on the old system, the numerical gradings secured by the officers still depend on the subjective evaluation made by
the reporting and reviewing officers. It is quite possible that officers of similar competence and performance may be assigned different numerical
grades depending on the reporting officer.
4. DoPT should formulate detailed guidelines to guide assigning numerical ratings process. Necessary training should be given to the reporting
officers.
60/97
7/7/2014
Evernote Export
4. 360 degree evaluation

1. This should be incorporated in the performance management system.
District Administration
Current Mandate
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Head of Land and Revenue Administration, including responsibility for district finance.
Overall supervision of law and order and security and some say in the police matters.
Licensing and Regulatory Authority in respect of the various special laws such as Arms in the district.
Conduct of elections for Parliament, State Legislature and Local Bodies.
Officer-in-charge of Disaster Management.
Chief Information and Grievance Redressal Officer of the district.
Guardian of public lands with the responsibility to prevent and remove encroachments.
Public service delivery by acting as Chairman for parastatals and various standing and inter-departmental committees.
Facilitation of interaction between civil society and the State Government;
Handling issues of local cadre management such as recruitment, in-service training and promotion.
Institution used by the state governments to control the PRIs.
View: Restrict the Role of Collector

1. With the establishment of PRIs and Municipal bodies it is imperative that the devolution of decision making to local levels should be carried out in true
spirit. The collector should be ultimately made responsible to the local bodies.
2. Strong traditions linked with this institution and its recognition in the public mind as the prime mover of governance at the district level would tend to
impede growth of any other authority at that level.
3. The office currently has widespread functions without well defined roles. This results in lack of clarity and diffusion of the Collectors responsibilities.
4. There is no need to assign any role to the Collector in respect of activities which are transferred to the PRIs.
View: Preserving the Role of Collector
1. It is equally imperative that the unique administrative experience, expertise and credibility of the office of the District Collector built up over a period of two
hundred years is properly utilized.
Recommendations
1. There is a need to redefine clearly his job. It should consist of:
1. A well defined set of exclusive activities as a functionary of the State Government.
2. The general work of coordination with various departments / agencies of the State and the Union Governments at the district level.
3. In the interim period till the time the local elected Institutions mature - as the CEO of the proposed District Council. Each district would ultimately
have a District Council comprising of representatives of both rural and urban bodies. The District Collector-cum-Chief Officer would have dual
responsibility and would be fully accountable to the elected District Government on all local matters, and to the State Government on all regulatory
matters not delegated to the District Government.
2. Grievance redressal, vigilance and implementation of citizen charters should be his responsibility. He should be given strong MIS and IT based tools for
monitoring various programmes.
3. E-governance initiatives in the district should be his responsibility.
4. Tour inspection notes and district gazetteers should be his responsibility.
5. Interaction with the civil society groups should be his responsibility.
6. Disaster response should be his responsibility.
7. Line departments which don't fall under the domain of PRIs should be his responsibility.
Public Order in a Democracy

Established Order vs Public Order
1. In a liberal democracy every citizen has a right to dissent and the expression of such dissent need not in itself breach public order.
2. In a democratic society, a situation viewed as a public disorder by one stakeholder may not be disorder for another stakeholder. For example, if a
dominant section of society indulges in degrading forms of exploitation of the underprivileged sections, the resultant protests by the latter are often
perceived by law enforcement agencies as public disorder.
3. This brings us to the distinction between established order and public order. Established order may not always be as per the tenets of the rule of law.
Perpetuating established order does not necessarily constitute public order in a society governed by democratic norms and the rule of law.
4. The law enforcement machinery often tends to concentrate on maintaining status quo, since, for them, public order means absence of any disturbance.
Law and Order vs Public Order vs Security of State Issues
1. Every situation in which the security of the State is threatened is a public order problem. Similarly, all situations which lead to public disorder, are
necessarily law and order problems also. But all law and order problems are not public order problems.
2. Thus, petty clashes between two individual are minor in nature with no impact on public order. But widespread violent clashes between two or more
groups, such as communal riots, would pose grave threats to public order. A major terrorist activity could be classified as a public order problem impinging
on the security of the State.
Tolerance to Breach of Laws
1. When it comes to ending a practice such as, say, animal sacrifice, persuasion and education and not use of force against strong public sentiment, are
called for.
2. The problem in such cases is where to draw the line. If a law is violated with impunity, even if it is a minor law, should the State remain a mute spectator
and condone violations promoting a culture of lawlessness? Or, should the State risk triggering a major public order crisis in its effort to enforce a law
whose gains are minimal and risks are huge?
61/97
7/7/2014
Evernote Export
3. The answer lies in two broad approaches.

1. First, the State should resist the temptation to over-legislate except in crucial areas which constitute the essence of constitutional values or prevent
significant public loss or promote vital public good. Persuasion, public education and social movements are the desirable routes to social change in
such cases.
2. Second, if such laws do exist, effective enforcement on case-to-case basis through prosecution of offenders is the better route and not the
thoughtless precipitation of a public confrontation. If indeed a confrontation is called for, there must be adequate preparation, sufficient deployment
of security forces, massive public campaign and preventive action in order to avert major rioting and loss of life.
History of IPS
1. IPS was earlier called Indian Imperial Police.
Issues in implementing Prakash Singh Reforms

1. Appointment of DGP
1. Implementation of the Directive to involve UPSC in the empanelment process (for the post of DGP) is beyond the scope and authority of the state
governments.
2. Fixed tenor for DGP
1. Regarding the direction to provide a minimum tenure of two years to DGP, irrespective of the date of superannuation, the state governments
projected their inability in its implementation on the ground that the said subject belongs to the domain of the All India Service Rules, which are
framed by the Union Government.
3. Police Complaints Authority
1. Practical difficulties were expressed by some of the states of smaller size for establishing separate district level Police Complaints Authorities.
2. Some States, particularly Uttar Pradesh, put forward the view that the existing multiplicity of authorities for Police accountability (such as National
Human Rights Commission, State Human Rights Commission, SC/ST Commission, Womens Commission and Minorities Commission etc.)
obviates the necessity of having one more separate mechanism for police accountability, in the form of Police Complaints Authority.
3. The civil society representatives, on the other hand, expressed the view that all those multiple authorities did not have binding powers and also that
there was need to have a body solely focusing on police misconduct, as envisaged in the Supreme Court directive.
State
State Security
Commission
DGP Selection and Tenure
Tenure Separation of
Police Establishment
of Other Law and Order
Board
Officers and Investigation
Police Complaint
Authority
Supreme 1. Binding.
Court
2. Headed by CM/HM,
Guidelines DGP secretary, other
members independent.
3. Lay down broad
guidelines.
4. Evaluate police
performance.
5. Prepare report to be
laid down in Legass.
5. Idea is to prevent
unwarranted political
interference.
1. From amongst 3 seniormost officers

empaneled by UPSC.
2. Min tenor of 2 years irrespective of
retirement.
3. To be removed before period only
upon consultation with SSC and on
certain clearly defined grounds only.
1.
Separation of the
Minimum two.
2 years
tenor.
1. PEB to decide on
transfers / postings / service
matters of DySP and below.
2. Recommend for SP and
above.
3. Departmental body only
with DGP and four other
seniormost officers.
4. Govt. to normally accept
recos. else explain in
writing.
5. To act as appeal against
arbitrary transfers.
6. Review police functioning.
1. Setup at district
level and state level.
2. Headed by judges
whose name would be
forwarded by CJ.
Rajasthan Constituted, but only

(Act)
advisory.
Done, but
1. No UPSC.
2. No need to consult SSC before
removing.
Done.
Constitued, but
Created, but no
1. Can only form guidelines independence.
for DySP and below.
2. Nothing for SP and above.
Special
Investigation units
to be created at
PS level.
62/97
7/7/2014
Evernote Export
3. No appeals.
2nd ARC Police Recommendations

1. Too many functions assigned
1. One of the major problems is clubbing a variety of disparate functions in a single police force and concentrating all authority at one level. A single,
monolithic force now discharges several functions.
2. As a result, the core functions are often neglected. Second, accountability is greatly diluted. Third, the skills and resources required for each
function are unique and a combination of often unrelated functions undermines both morale and professional competence.
2. Self-esteem of Policemen
1. A constable can generally expect only one promotion in a life time and normally retires as a head constable. Constables have become machines
carrying out the directions of their superiors with little application of mind or initiative. Constant political interference in transfers, placements and
crime investigation, long and difficult working hours, the menial duties they are often forced to perform as orderlies to senior officers.
2. Recruitment in most states is at several levels constabulary, sub-inspector, deputy superintendent of police, and the Indian Police Service. Several
tiers of recruitment have diminished opportunities for promotion.
3. Further, the removal of the orderly system would also help the constabulary focus on their prime duty, policing. The orderly system should also be
immediately abolished.
3. State Security Commission
1. Constitution of a statutory Commission in each state to be called the State Security Commission. This Commission was to lay down broad policy
guidelines, evaluate performance of state police and function as a forum for appeal from police officers and also review the functioning of the police in
the state
Local Governance
Created: 5/30/2013 1:15 PM
Evolution of Local Governance

Before the Amendments
1. Second Five Year Plan
1. It recommended that the Village Panchayats should be organically linked with popular organisations at higher levels and in stages the democratic
body should take over the entire general administration.
2. Balwant Rai Mehta Committee
1. To operationalize this initiative, Government appointed a committee under the Mehta Committee in 1957.
2. It offered two broad directional thrusts:
1. There should be administrative decentralisation for effective implementation of the development programmes and the decentralised
administrative system should be placed under the control of local bodies.
2. It recommended that the CD blocks should be designed as administrative units with an elected Panchayat.
3. This Panchayat would need guidance of technical personnel in many matters; hence it should have line department officers of suitable competence
under its control.
4. The Panchayat Samiti was also to be equipped with sources of income.
5. Certain powers of control were retained by the government; like supersession of Panchayat Samiti in public interest, suspension of a resolution of a
Panchayat Samiti by the Collector.
6. The recommendations also suggested reservation for SC/ST and women.
7. It also recommended formation of a Zila Parishad at the district level consisting of all the Presidents of the Panchayat Samitis, MLAs and MP with
district level officers of some line departments as members and the Collector as the chairman. It should just as an advisory body for the
Panchayats.
3. Followup to Mehta Committee
1. Although a number of Panchayats were set up in different States, they had limited powers and resources and the essential idea that all
developmental activity should flow only through the Panchayat Samitis lost ground.
2. Subsequently Panchayati Raj elections were postponed indefinitely and flow of funds for Block Development were reduced to a trickle. By the
1970s, these bodies remained in existence without adequate functions and authority.
3. The position of these institutions was further weakened due to the creation of a large number of parastatals, which were assigned many of the
functions legitimately envisaged in the domain of PRIs, for example water supply, slum improvement boards, etc. on the perception that these
functions were too complex and resource dependent to be handled by local governments.
4. 1st ARC
1. It recommended that the main executive organ of the Panchayati Raj system should be located at the district level in the form of Zila Parishad and
not at the Block level as Panchayat Samiti. It was of the view that the Zila Parishad would be in a better position to take a composite view and be
able to formulate a plan for the area.
2. It also believed that due to paucity of resources, it was difficult to sustain a well equipped administrative and development machinery at the level of
a Block.
5. Ashok Mehta Committee
1. It chose the district as the first point of decentralisation below the State level.
2. The next level was the Mandal Panchayat which was to cover a population of around 10,000 to 15,000.
3. As an ad hoc arrangement, the Committee recommended continuation of the Panchayat Samiti at the Block level, not as a unit of self government
but as a nominated middle level support body working as an executing arm of the Zila Parishad.
4. Similarly, at the village level it thought of a nominated village level committee consisting of local member elected to Mandal Panchayat, local
member elected to the Zila Parishad and a representative of small and marginal farmers.
5. The Zila Parishad was recommended to take up planning for the district and to coordinate and guide the lower PRI tiers.
6. It also called for creation of a body of professionally qualified experts for drawing up the district plan. The plan thus prepared had to be placed before
63/97
7/7/2014
Evernote Export
the Zila Parishad.
7. It called for transfer of all development functions and related government staff to the control of the Zila Parishad.
8. To assist the Zila Parishad, it recommended creating a senior post known as the CEO manned by an officer senior in rank to the Collector.
9. It recommended a constitutional backing for PRIs.
Core Principles for Local Governance Reforms

Democratic Decentralisation
1. Local democracy vs decentralization
1. Local democracy is sometimes treated as synonymous with decentralisation, but the two are in fact quite distinct. Sometimes decentralisation
may not be conducive to local democracy.
2. In situations of sharp local inequalities, decentralisation sometimes heightens the concentration of power, and discourages rather than fosters
participation among the underprivileged. To illustrate, in some tribal areas where upper caste landlords and traders dominate village affairs, the
devolution of power associated has consolidated their hold.
2. Advantages
1. Decentralisation tends to promote fiscal responsibility when there is a clear link between resource generation and outcomes. People will be
encouraged to raise more resources only when there is a greater link between the taxes and user fees levied and the services that are delivered to
them.
2. In centralised structures, citizen participation and ownership are illusory despite national citizen sovereignty.
Principle of Subsidiarity
1. Definition
1. It means that what can best be done at the lower levels of government should not be centralised at higher levels. It is based on the idea that
citizens are sovereigns and the final decision makers.
2. The citizen must exercise as much authority as practicable, and delegate upward the rest of the functions which require economies of scale and
can be done more efficiently at a higher level only.
2. Advantages
1. Local decision-making improves efficiency, promotes self-reliance, encourages competition and nurtures innovation.
2. There will also be greater ownership by the local communities.
3. Democracy is based on the fundamental assumptions that citizen is the ultimate sovereign and has the capacity to decide what is in his best
interest. Subsidiarity is the concrete expression of this assumption.
4. Once decision-making is delegated lower, people can better appreciate that hard choices need to be made.
Clear Delineation of Functions vis-a-vis State Governments and Among Different Tiers of Local Governments
1. PRIs vs State Governments
1. Since all local government subjects by definition are also state subjects, there should be clear delineation of roles of the two otherwise needless
confusion and undue interference by the state will be inevitable.
2. An activity mapping must be done. For instance, while managing local schools should be a subject of PRIs, the framing of the curriculum, setting of
standards and conduct of common examinations should fall within the states purview. Similarly, in healthcare, development of protocol,
accreditation of hospitals and enforcing professional standards should necessarily fall within the States purview.
2. Intra-PRI Delineation
1. Within the local governments there is a need for clear functional delineation amongst the various tiers. Here again an activity mapping is essential.
2. For example, while school management can be entrusted to the Panchayat, most academic matters would fall within the purview of the higher tiers
of local government. Similarly, while a health sub-centre may be looked after by the Village Panchayat, the Primary Health Centre should be
managed by the Intermediate Panchayat, and the Community Health Centres and hospitals by the District Panchayat.
Effective Devolution in Financial and Personnel Terms Accompanied by Capacity Building and Accountability
1. Even legislated empowerment remains illusory unless public servants entrusted with the discharge of responsibilities under the local governments sphere
are fully under local government control.
2. The principles behind fiscal devolution should be:
1. PRIs must be able to effectively fulfill its obligation.
2. There must be sufficient room for flexibility through untied resources.
3. There must be both opportunity and incentive to mobilize local resources.
3. The Upper House functions as the voice of constituent states. On similar grounds, Legislative Councils should be created in all states to be elected by the
PRIs exclusively.
4. Equally important is the building of capacity. Revision of all laws impeding their functioning, bringing all institutions like parastatals and line department
which are necessary for their functioning under their control, strengthening management capacity, training, ability to attract expertise available outside
government are needed.
Integrated View of Local Services and Development Through Convergence of Programmes and Agencies
1. Rural-Urban Divide
1. The rural urban divide in the higher tiers of local governments is a colonial legacy.
2. At the primary level the needs of the rural population and the approaches required are different from those of urban people. So it makes sense to
have Panchayats for rural areas and municipal bodies for urban areas at the lowest level.
3. However, with rapid urbanisation and peri-urban areas, such a distinction at higher level is artificial. Instead of a Zila Parishad, we should have a
District Council for the integrated development of the district.
2. Integrating parastatals
1. The local functions of all the parastatals need to devolve on local governments, even as institutional mechanisms need to be devised to benefit from
expert guidance.
3. Stakeholders vs Local Bodies
1. Wherever a group of stake-holders can be clearly identified, for instance, the parents of children of a school, they should be directly empowered to
the extent possible.
64/97
7/7/2014
Evernote Export
2. However, stake-holder empowerment should not be seen as antithetical to local government empowerment. Just as the tiers of local government
have to function in close coordination, local government and empowered stake-holders groups should work in concert.
Citizen Centric Governance

1. The citizen must be enabled to interact with all service providers through a single window.
2. Mechanisms should be there to measure citizens satisfaction. Citizen report cards, feedback at delivery and service counters, call centres needs to be
institutionalised.
3. In addition, social audit and strong grievance redressal system should be there.
Structure of PRIs
Number of Tiers
1. Article 243 B makes it mandatory for every State with a population exceeding 20 lakhs to have three tiers of Panchayats at the Village, Intermediate and
District levels.
2. In a vast and complex country, it is not feasible to prescribe nationally any specific pattern of local governments. In Kerala, there are only about 999
Village Panchayats in 14 districts. Clearly a mandatory intermediate tier Panchayat would be redundant in Kerala. Even larger States, with generally
smaller habitats mostly want to treat a group of villages as the unit of local government. In such a case again, Intermediate Panchayats may be
redundant.
3. Also, the states should have freedom to experiment and improve the design from time to time.
4. If the States wish to have three tiers, they should be free to adopt them. So the tiers of local government should be left for the State legislature to decide.
Inclusion of MPs and MLAs in Local Bodies
1. Article 243 C stipulates that the State Legislature may by law provide for the representation of the MPs and MLAs at local government levels other than
the village level.
2. But the imposing presence of MPs and MLAs in the Panchayats would subdue the emergence of local leadership. So they should not become members
of local bodies.
District Council
1. The sheer accident of elected urban local governments coming into being first during the colonial era led to parallel and disjointed development of
panchayats and municipalities.
2. Its negatives are as follows:
1. There is an artificial divide between the rural and urban populations even in matters relating to common needs and aspirations. For instance, health
care and education. A district hospital does not cater to only the urban population in the district town.
2. In a rapidly urbanising society, the boundaries between rural and urban territories keep shifting. It is absurd in an expanding city to have the
peripheral areas managed by Panchayats. The need for coordination between rural and urban local governments at the district level gave rise to
institutions like DPCs. But they have proved to be too weak and non-starters in many states.
3. Finally, in the public eye there is no single, undivided local government at the district level. Not surprisingly, the office of collector continues to
remain the real symbol of authority in the district. But this is not healthy for the growth of local self government bodies.
3. Planning is an essential function of government. Creating a separate authority in the form of DPC with no governmental authority has no logic.
4. So there must be a single elected District Council with representatives from all rural and urban areas, that will function as a true local government for the
entire district.
Size of the Gram Panchayat
1. The Constitution does not stipulate any size for Panchayats, either in terms of population or in area. Larger panchayats mean greater efficiency of scale in
delivery of services. Their negative is lower citizen participation in the Gram Sabhas.
2. There is a historical idealised notion that there should be one Panchayat for each village. But this leaves many Gram Panchayats too small to function
meaningfully.
3. Option of ward sabhas can be explored.
Ward Sabha in Rural Areas
1. Larger panchayats mean lower citizen participation. Hence the creation of an intermediate body-Ward Sabha - is desirable as it would facilitate greater
people participation and at the same time ensure administrative viability of the Gram Panchayat. It already exists in Karnataka.
2. A Ward Sabha should articulate the needs of the ward as a whole. They should be assigned the function of identification of beneficiaries. The list thus
prepared should be placed before the Gram Sabha for its approval. They should also be given a role in prioritisation of schemes pertaining to their area.
Structure of Urban Bodies
Ward Sabhas in Urban Areas
1. Issues
1. In rural areas, the proximity and small size of the Village Panchayat facilitates greater participation by the citizens, whereas in urban areas, such
participation becomes difficult.
2. The Constitution makes creation of such Ward Committees mandatory in all cities exceeding a population of 3 lakhs. Still they have not yet been
constituted in some States.
3. In most States, the membership of the Ward Committee is by nomination. This is partly because of the propensity of the State Government to gain
partisan advantage in nomination, and partly because of the genuine difficulty in identifying legitimate citizen representatives within the ward.
4. They have an ambiguous mandate. No clear activities have been devolved on them. This further limits citizen participation.
5. In many large cities, there are Ward Committees combining several wards leading to each ward sabha covering a large population exceeding 5
lakhs in some cases. This undermines the very intent behind creating the Ward Committees.
2. Recommendations
1. The three tiers of urban local body governance should be as follows:
65/97
7/7/2014
Evernote Export
2.
3.
4.
5.
6.
7.
8.
1. Municipal Council/Corporation (by whatever name it is called).

2. Ward Committees.
3. Area Committees or Sabhas.
Ward Sabhas should be constituted by the chairpersons of the Area Sabhas. There should be direct election of the Ward Councilor who would be
the Chairperson of the Ward Committee who would represent the ward in the municipal body.
In smaller towns also, with populations of less than 3 lakhs, we should have the above structure of Area Sabhas and Ward Sabhas.
Ward Sabhas must be given legitimate functions in clear terms like street lighting, sanitation, water supply, drainage, road maintenance,
maintenance of school buildings, maintenance of local hospitals/dispensaries, local markets, parks, playgrounds.
It should have supervision over the employees involved in the functions entrusted to it. It should be able to determine the salaries of all such people
on the basis of their performance.
It should have separate funds allocated to it. Its budget should be taken into account while formulating the overall municipal budget.
Meetings of Ward Sabhas must be regular.
Because non residential stakeholders like business are also interested in an area, they should be given some representation in the Ward Sabha
preferably through their business associations.
Area Sabhas
1. An Area Sabha would preferably not cover more than, say, 2500 voters.
2. Role of the Area Sabhas: It should be the functional equivalent of the Gram Sabha in villages. It should not be merely a political space for opinion
formation. It should be a formal space, and given explicitly defined functions like prioritising developmental activities and identifying beneficiaries under
various schemes. It should have separate budget for the discharge of its functions and meet regularly.
3. Members of the Area Sabha: Each Area Sabha should elect a small Committee of Representatives. The Committee of Representatives would elect one
person who would chair the meetings of the Area Sabha and would represent the Area Sabha in the relevant Ward Committee. The election of the
Committee of Representatives should be held by the SEC.
Office of the Mayor
1. Mayor vs state government
1. In most states, the Commissioner, appointed by the State Government, has all the executive powers. This leads to a dilution in the role of the
elected Mayor and is violative of the spirit of self-governance and local empowerment.
2. Directly elected mayor
1. One concern in such a case is that abuse of authority by the Mayor with a fixed tenure cannot be easily checked. However, in such a case, the
council, public opinion and media will act as a check. An independent local body Ombudsman will always act as an effective check against abuse
of authority at all levels.
2. When a Mayor is elected by popular vote and the Council members are elected by a separate ballot, it is possible that the Mayor and a majority in
the Council may belong to two different parties. This may lead to problems. However a clean separation of powers will prevent such tensions. On
the other hand, it may improve accountability as each acts as a check against the other, but cannot stop legitimate exercise of power.
3. When a Councillor elected to represent a ward is elected as the Mayor indirectly, often it is difficult to enlarge his/her vision for the whole city.
4. Also, the direct popular mandate gives the Mayor the legitimacy to represent and speak for the whole city.
5. If the Mayor is directly elected, the party will have to put up its best candidate in the city from that category and there is likely to be better
leadership that emerges.
6. Role of the Mayor
1. Should there be a separate Chairperson to chair the meetings of the Council and a Mayor to head the executive branch of the city
government?
This is in keeping with separation of powers and is somewhat similar to the way our National and State Legislatures have their own
presiding officers, while the executive government is headed by the Prime Minister/ Chief Minister.
However, such separation of the functions of Chairperson and Mayor at the local level is unnecessary and cumbersome. In all rural
local governments, the Chairperson is also the executive authority.
2. Who should be the Chief Executive - the elected Mayor or the appointed Commissioner?
Clearly the elected Mayor because basic democratic legitimacy demands that power is exercised by the elected executive.
3. In large cities, how should the Mayors executive authority be exercised?
As cities grow larger, the Mayor needs the support and help of a group of persons to exercise executive authority under his overall
control and direction. Therefore, some form of cabinet system is desirable.
In systems where the chief executive is directly elected, and separation of powers is practised, the cabinet is often drawn
from outside the legislature.
But in a city government, the imperatives of separation of powers should be tempered by the need for greater harmony between the
elected council and the Mayor. It is therefore desirable to draw the Mayors cabinet or committee to discharge executive functions
from the elected council.
Other Issues with PRIs

Revision of 11th and 12th Schedules
1. Subjects like non-conventional energy, poverty alleviation programmes, education including primary and secondary education, adult education, technical
training and vocational education, women and child welfare, family welfare, the public distribution system, libraries, cultural activities which figure in the
11th schedule but not in the 12th can surely be functions for municipalities too.
2. Maybe the two schedules need not be revised, but that the fact that they are not exhaustive and are only illustrative should be recognised.
Strengthening the Voice of Local Bodies
1. Apart from constituting Legislative Councils (where they do not exist), the existing Legislative Councils may be recast as a council for local governments.
Growth of parastatals
1. They are the development authorities, housing boards, slum development agencies and water and sanitation boards. This has also led to a fragmented
approach, with a large number of bodies working in isolation.
2. For example,
66/97
7/7/2014
Evernote Export
1. The most important parastatal at the district level is the District Rural Development Authority (DRDA). The funds for most of the CSS are routed
through it. There is no justification for having DRDA.
2. A district also has a District Health Society (DHS) to look after the programmes of the NRHM. DHS has to be responsible to the PRIs. However,
management of district hospitals and regulation of private nursing homes are some of the functions which need high level professional and technical
competence. To that extent, the DHS will need functional autonomy.
Capacity Building in Local Bodies

1. Capacity building doesn't mean only training. It also includes organizational development. It means development of supportive institutional and legal
framework. It also includes designing appropriate structures, re-engineering internal processes, developing MIS, developing suitable incentive systems and
adopting sound HR practices.
2. There is a strong case to indicate separate training funds in various schemes to be implemented by the PRIs.
Accountability and Transparency in PRIs
1. Audit is essential for accountability but it is not sufficient because of the large time lag between the decision making and its scrutiny by audit. Also a large
number of audit observations remain unattended due to lack of proper monitoring and follow up.
2. PRIs should be accountable to the state legislature and a separate Committee on Local Bodies can be formed just like the PAC.
3. There should be a local body Ombudsman (independent etc.) functioning under the overall guidance and superintendence of the Lokayukta.
4. Other usual methods are citizen report cards, grievance redressal mechanism, social audits.
Space Technology in PRIs
1.
2.
3.
4.
5.
6.
Creating resource centres.

Tele-education.
Tele-medicine.
Single window delivery mechanism for a variety of space-enabled services and products, such as education, vocational training, skill development.
Weather and Climate.
Disaster management: During the period of natural disasters, it facilitates video- conferencing and real-time information exchange. Space technology is
also utilised in flood mapping and damage assessment.
7. Natural resources management: The areas of importance are rural land management, rural infrastructure, conservation of water bodies, groundwater
mapping and providing drinking water, wasteland mapping, watershed development.
8. Urban land use data: Remote sensing has provided an important source of data for urban land use mapping. ISROs CARTOSAT-2 satellite has the
capacity to provide imagery with one metre spatial resolution.
9. National Urban Information System: The Ministry of Urban Development (MUD) has taken initiative to establish a National Urban Information System
(NUIS). The major objectives of NUIS are to: (a) develop attribute as well as spatial information database for urban planning; (b) develop standards; (c)
develop urban indices to determine and monitor the health of the towns and cities.
Resource Centre at the Village Level
1. It will contain information about local resources and local traditional knowledge and will be ICT and Space technology based.
2. It should utilize the potential of educated local youths in documenting and mapping local resources; soil types; drainage pattern; cropping and animal
husbandry practices; water resources; land and farm holding; susceptibility to natural disasters, infrastructure. Then it could be suitably incorporated in
the national plans.
3. They should also document local traditional knowledge, especially about medicine, natural resource management and agricultural practices; local arts and
crafts; folk memories.
Issues With Local Body Elections

Delimitation of Constituencies
1. Article 243 C of the Constitution provides that the ratio between the population of the territorial area of a Panchayat at any level and the number of seats
in such Panchayat to be filled by election shall be the same throughout the State.
2. While such an explicit provision has not been made in respect of municipalities, basic principles of equity and democratic participation demand that a
similar practice should be followed in urban local governments.
3. But in many States, the powers of delimitation of local government constituencies have been retained by the Governments.
4. As a result, in many cases, particularly in urban areas, the SECs have to wait until a delimitation exercise is completed by the State Governments. He is
helpless when the delimitation exercise is not completed in time and so the elections are delayed.
Rotation of Reserved Constituencies
1. Rotation Necessary
1. Given the complexity of reservations in local government and the high proportion of seats reserved (70% and more in certain states), periodic
rotation of seats becomes necessary.
2. Rotation not Necessary
1. Frequent rotation denies to the elected representatives, an opportunity to gain experience and grow in stature.
2. This is particularly damaging for disadvantaged sections of voters. As a result, while reservations lead to numerical representation, empowerment is
sometimes illusory because very often, entrenched local elites tend to nominate proxy candidates in reserved seats in anticipation of its rotation
after a term.
3. Balanced Approach
1. The rotation can be after at least two terms of five years so that there is possibility of longevity of leadership and nurturing of constituencies.
However, with multiple reservations this may lead to large sections being denied the opportunity of reservation for a long time.
2. Second, instead of single-member constituencies, elections can be held to multi-member constituencies. Several seats can be combined in a
territorial constituency in a manner that the number of seats allocation for each disadvantaged section remains the same in each election in that
constituency.
4. Delays in Reservation Exercise
1. Many States undertake the exercise of enumeration of OBCs in the eleventh hour, delaying reservation and therefore the conduct of elections. So
the reservation of constituencies should also be entrusted to SECs.
67/97
7/7/2014
Evernote Export
Separate Electoral Rolls for PRI Elections

1. Preparation of separate electoral rolls for local governments is redundant and can only lead to confusion.
2. Electoral rolls prepared by the Election Commission of India should be adopted for elections to local governments also.
Bringing SECs under ECI
1. Yes - Bring It
1. Bringing SEC under the control of ECI will give it the required independence from state governments.
2. This would also ensure a commonality of approach in the electoral process.
2. No - Repeal Art 243K and Amend Art 324
1. However, one independent constitutional authority cannot function under another constitutional authority.
2. The only alternative would be to repeal Article 243K and amend Article 324 entrusting local elections to the Election Commission of India.
3. Article 324 provides for appointment of Regional Election Commissioners. A Regional Commissioner could then be appointed for each State under
this provision and it could function as the SEC for local elections.
3. No - Only Strengthen SEC
1. Against this it has also been argued that, as the number of local bodies is so large, the ECI would hardly have the time to attend to election related
matters in respect of local governments.
2. Now that every State has constituted its SEC, repealing Article 243K and abolishing these offices would be impractical.
3. So the focus should be on strengthening the independence of the SEC.
SEC should be appointed by a collegium comprising the Chief Minister, the Chief Justice of the High Court and the Leader of Opposition.
Serving officers should not be appointed. Uniform criteria need to be evolved and institutionalised regarding the qualifications, tenure and age
of retirement. Post retirement jobs should not be allowed.
SECs should be accorded the status of a Judge of a High Court in the same manner as ECs in the Election Commission of India are
accorded the status of Judge of the Supreme Court.
Devolution of Powers
Constitutional Scheme for Devolution
1. The Constitution provides for devolution for the twin purposes of:
1. Making plans for economic development and social justice.
2. Implementing programmes of economic development and social justice.
Current Issues in Devolution
1. Constitution and elections
1. Despite the mandatory constitutional injunctions, it took years, and in some cases a decade, to even constitute local governments and hold
elections.
2. Even when local governments are constituted and elections are held, states often postponed or distorted the subsequent elections on some pretext
or other. Recent West Bengal issue is there.
2. Devolution of functions
1. State governments and civil servants are in general reluctant to effectively empower local governments. Only the bare minimum required to
implement the strict letter of the Constitution prevails in many States and the spirit is ignored.
2. Only minor civic functions have been exclusively assigned to the local self government bodies. All the other so-called development functions
assigned to the different tiers of Panchayats are actually dealt with by the line departments of State Governments or parastatals.
3. Resources as well as staff also remain under the control of the State Government.
4. Even mandatory provisions like the constitution of DPCs and MPCs have been ignored in many States.
5. Progress in delineation of functions of the different tiers of local governments in a given subject matter has been very slow.
6. The exercise of activity mapping continues to be partial and delayed. State governments have generally not approved the activity mapping lists.
7. Even where activity mapping has been approved, parallel action to enable local governments to exercise the functions has not been taken.
8. The existing government departments and parastatals prevent the local governments from exercising the so called transferred functions.
9. All laws which are inconsistent with the provisions of PRIs have to be suitably amended to bring them in conformity with the PRI system or
repealed or will expire after one year from the 73rd and 74th Amendments. Despite the passage of 15 years since then, most States have not even
identified such laws.
3. Interference of state governments
1. State governments retain their right to supersede a PRI or to veto its resolutions.
2. Almost all the States have chosen to assign functions to the PRI not through statute, but by delegated legislation in the form of rules or executive
orders.
3. Political interference in intervening in transfers, sanctioning of local bodies contracts and tenders.
Recommendations for Devolution
1. While devolution must eventually comprise the entire range of subjects, States may plan their own devolution programme keeping in mind the ground
realities.
2. Identification of activities via activity mapping is essential and each activity needs to be assigned at appropriate level in the PRI system.
3. Principle of subsidiarity should be strictly followed in the activity mapping process.
4. Devolution must be by legislative action and not statutory.
Devolving Regulatory Functions to the Panchayats
1. There are many areas where the rationale for devolving regulatory powers to the local governments is very strong. To begin with tasks like issuing birth,
death, caste and residence certificates, enforcing building regulations, issuing of voter identity cards would be better performed by local governments.
2. The Gram Panchayats can play an effective role in community policing. In most of the developed countries, policing is a municipal job and there is no
reason why it should not be so in India.
PRIs and the State Government
68/97
7/7/2014
Evernote Export
1. In most states, the state governments retain significant control over PRIs. This includes:
1. power to suspend a resolution.
2. Power to inquire into the affairs of the Panchayat.
3. Power to remove elected Panchayat representatives.
4. Power to inspect and issue directives.
5. Withdrawal of powers from the Panchayat.
6. Approval of the budget of a Panchayat.
2. In some States the higher tier of Panchayat is given the authority to exercise control over the lower tier. This is inappropriate because all the tiers of
Panchayats are institutions of self government and there cannot be any hierarchic relationship between them.
3. Maladministration, irregularities, abuse of power are some of the situations which may warrant action against the PRIs. The state government needs such
powers in these cases to ensure PRI administration is carried out within the contours of the law. But it is also necessary to ensure that this responsibility
does not translate into micromanagement of PRIs.
4. So to prevent actions motivated by narrow political considerations, the State Government should place the case before the local bodies Ombudsman and
take action based on his recommendations only. If it decides otherwise, all the reasons must be given in writing and made public.
5. The provisions in some State Acts regarding approval of the budget of a Panchayat by the higher tier or any other State authority should be abolished.
6. Election related complaints should only be decided upon by the SEC.
Need for a Constitutional Directive for Effective Empowerment of PRIs
1. Needed
1. When it comes to actual devolution, most states have been reluctant. Given this backdrop a strong constitutional provision seems necessary.
2. The use of the phrase shall by law vest as against the existing may by law endow by a constitution amendment.
2. Not Needed
1. The autonomy of states must be respected.
2. The situation varies from state to state and the uniform approach [one size fits all] could be detrimental.
3. The matters listed in the Eleventh and Twelfth Schedules could not be fully handled by the local governments and activity mapping is needed
because there are several activities in these subjects which are more appropriately done at the state level than the local level. Such detailed
prescription is not possible in the Constitution and the states must have the freedom in devolving specific functions to local governments.
3. Balanced Approach
1. While the constitutional provisions need to be strengthened, it is desirable to lay down general principles of empowerment without unduly restricting
the states freedom of action.
2. These principles can be principle of subsidiarity and activity mapping.
Devolution or Delegation?
1. Delegation is the transfer of power for specifically defined functions, without ceding the authority and responsibility in respect of that function. There is
discretion on the part of the transferor government in deciding whether or not to delegate power, which powers to delegate, to curtail or withdraw it later.
Devolution is the full and permanent transfer of power.
2. If Art 243G and 243W are read to mean delegation, there would be no difference between the pre-amendment and post-amendment position. Such an
interpretation defeats the whole purpose of the constitutional amendments.
3. PRIs are defined as 'institutions of self-government', and their constitution is made mandatory. A self government must derive powers from its own
authority and the principle of subsidiarity.
4. 'Self Government' and Art 243G and 243W
1. The term 'self-government' is not defined or explained in the Constitution. States have exploited this constitutional silence, and the use of the word
'may' in Articles 243G and 243W to grant themselves discretion.
2. These articles are made "subject to the provisions of the Constitution", which could be read to imply that
1. It cannot be used to curtail the authority of the State to legislate on matters within its competence. But it also means states cannot use
their power to erode the purpose of Article 243G/ 243W, namely devolution.
3. One possible way could be to use the expression "as may be necessary to enable them [Panchayats/Municipalities] to function as institutions of
self-government".
Union Oversight Over PRIs
1. Increase Union Oversight
1. Many activities of a large municipal body today impact the nation as a whole and may even have international ramifications, such as with
international airports.
2. Funding for district development comes largely from the Centre due to states lack of resources. CSS have made PRIs even more dependent upon
center.
3. One approach could be that the subject of local governments or certain functions which are directly relevant to all three tiers of government be
placed in the Concurrent List.
4. Indian Constitution vs SAF Constitution on Local Bodies in Concurrent List:
1. In South Africa, functions listed for concurrent legislation include a vast part of municipal governance matters whereas in the Indian
Constitution, this is specifically a State subject.
2. The South African Parliament can pass a framework law in any matter to provide for structures and institutions of local government system.
2. Don't Place Local Bodies Under Concurrent List
1. Constitution places all activities related to PRIs within states' domain. The governance of local bodies cannot be controlled by the Union.
2. A Framework Law may be passed by Parliament under Article 252 (power of Parliament to legislate for two or more States by consent and
adoption of such legislation by other States).
3. The remaining States may then be persuaded to adopt this law.
4. This Law should lay down the broad principles of devolution of powers, responsibilities and functions to the local governments and communities,
based on the following:
1. Principle of Subsidiarity.
2. Democratic Decentralisation.
3. Delineation of Functions.
4. Devolution in Real Terms.
5. Convergence.
6. Citizen Centricity.
69/97
7/7/2014
Evernote Export
Issues With Local Body Finances

FC 13 on Local Bodies
1. As the Constitutional provisions do not permit sharing of the divisible pool with the local bodies, FC-XIII recommended grants equivalent to a percentage
share of the divisible pool (under Art 275). It has supported local bodies through a predictable and buoyant source of revenue by giving them a share in the
divisible pool. The Commission has recommended grants equivalent to 2.28% of the divisible pool or Rs. 87, 500 crore. For the first time, FC-XIII has linked
grants to local bodies to the divisible pool of Central taxes.
2. The grant recommended by FC-XIII has two components - a basic component and a performance based component.
1. The basic grant which is equivalent to 1.50% of the pool is available to all the States put together without any conditions.
2. The performance grant effective from 2011-12 will be 0.50% of the divisible pool for the year 2011-12 and 1% thereafter. The main stipulations are,
putting in place a supplement to budget documents listing out the budget allocations separately for local bodies, audit system for local bodies,
appointment of an independent ombudsman for local bodies, prescribing through an Act qualification of persons eligible for appointment to SFCs
and enabling all local bodies to levy property tax.
Tax Base
1. Issues
1. PRIs lack elastic revenue sources and their taxation bases are meager.
2. So they are heavily dependent on grants from Union and State Governments. A major portion of the grants both from Union as well as the State
Governments is scheme specific.
3. In view of their own tight fiscal position, State Governments are not keen to devolve funds to Panchayats.
2. Recommendations
1. In recent years, PPP infrastructure projects have gone up significantly. PRIs should be given a share out of the collections from such projects.
2. They should also get a share in the minerals royalty. Because in both the cases, local communities are the ones who contribute the most.
3. CFC and SFC grants should be based on their own revenue generation efforts so that PRIs are incentivised to generate their own revenue.
State's Control over PRI Funding
1. Issues
1. States retain discretionary control over PRI budgets and often ignore SFC recommendations.
2. Transfer of funds to PRIs is made under a number of budget heads, often in packets of small allotments. Such a complicated procedure for
allocation leads to delays and makes the accounting confusing. This should be simplified.
3. The state governments do not adhere to a time frame for release of funds to PRIs. Often the allotment is released towards the close of the financial
year, leaving very little time to the local bodies to carry out actual work. As a result, often the funds remain undrawn which leads to smaller
allocations in subsequent years.
2. Recommendations
1. The approximate quantum of funds to be transferred for a block of five years should be indicated to the local bodies in advance so that the
Panchayats plan accordingly. States should follow SFC recommendations. Funding should be made as rule based as possible.
2. PRIs should also be allowed to borrow funds.
70/97
7/7/2014
Evernote Export
The State Finance Commission (SFC)

1. Issues
1. Lack of clarity on SFC's part in respect of role of the local bodies.
2. Absence of uniform standards and format in various SFC reports.
3. Absence of a time frame within which the state governments are required to take action on the recommendations of the SFCs.
4. State governments cherry pick from the SFC's recommendations and don't accept the inconvenient ones.
5. While estimating the resource gap, SFCs normally just make forecasts based on the historical trends.
6. Serious issues with SFC composition.
2. Recommendations
1. SFCs should be constituted at least 2 years before the required date of submission of their recommendations, and the deadline should be so
decided as to allow the State Government at least 6 months time for tabling the ATR. SFC reports should be readily available to the CFC when the
latter is constituted so that an assessment of the States need could be made.
2. The healthy precedent established by the Union Government in generally accepting the devolution proposals made by the CFC should also be
followed by the State Government.
3. The SFCs follow the procedures and guidelines adopted by the CFC.
4. SFCs should follow a normative approach in estimating resource gaps. They should link the devolution of funds to the level/quality of civic amenities
that the citizens could expect consistent with some uniform standards of service delivery.
5. SFCs should have people of eminence and competence.They should follow the requirements as for the CFC. Serving bureaucrats should not be
appointed.
6. There should be a permanent SFC cell in the finance department.
Back ward Regions Grant Fund
1. It covers 250 backward districts. The fund is intended to provide financial resources for (i) filling of critical gaps as identified by local bodies, (ii) capacity
building of PRIs, and (iii) for enlisting professional support by the local bodies.
2. The Panchayats have flexibility in selection of programmes, identification of beneficiaries and monitoring. In all these activities, the Gram Sabha has to be
fully involved.
Urban Finances
Property Tax Reforms
1. Issues in Coverage: Only a fraction of the properties in urban areas are assessed for this tax.
1. The main reason is that the boundaries of municipal bodies are not expanded to keep pace with the urban sprawl.
2. State laws often provide for exemption to a number of categories of buildings.
3. Unauthorised settlements are not normally taxed by the municipal authorities for fear that levy of property tax would strengthen the demand for
regularisation.
4. A large number of properties belonging to the Union and State Governments are not taxed. Local Governments provide services to the occupants of
such properties and there are costs. Therefore, they should be empowered to collect service charges from such properties.
5. Similarly, properties belonging to the municipal government which have been given on lease are not taxed.
6. Records of title of property lead to poor tax collection.
2. Issues in Assessment
1. Collusion between the assessing authorities and property owners.
2. Annual Rental Value (ARV) method was used for this tax. It had many drawbacks the manner of assessment was opaque and gave a lot of
discretion to assessing officials.
3. Another major drawback of ARV was that it was non-buoyant. The tax fixed for a property would remain unchanged till such time an overall revision
in the property tax was undertaken. Such revisions did not take place for decades.
4. Now the municipal bodies are switching over from the traditional ARV based assessment to the Unit area or the Capital value methods. The Unit
Area Method overcomes buoyancy problem to some extent as the various parameters for assessment can be changed periodically.
5. Property tax based on capital value are supposed to overcome this problem totally, as taxes are self-assessed by the property owner every year
and while doing so the market value prescribed for that year are taken into account. This is a fraud in India for obvious reasons.
User Charges
1. Issues
1. There has been a tendency to charge for various services at rates that are much lower than the actual cost. This is because of the reluctance to
charge fair rates for fear of becoming unpopular.
2. Lack of availability of required expertise at the local level prevents them from arriving at correct rates for the utilities.
3. The power to impose fines is not given to the municipal authorities and proceedings in the court have to be instituted. Thus even for imposition of a
small fine, prosecution has to be launched in a criminal court.
4. Another reason for poor compliance of civic laws is the relatively non-deterrent nature of penalties prescribed.
2. Recommendations
1. State Finance Commissions should link the grants to the user charges efforts of the municipal bodies. They can also lay down guidelines to arrive
at the optimum tariff rates.
2. Technology must be used to avoid theft and pilferage. Bill payments must be enabled online.
Leveraging Land as a Resource
1. Sale of public urban land is dominated by development authorities. Proceeds from the sale of such land must be given to the municipal bodies as done in
Rajasthan where 15% share is given to the municipal bodies.
2. But proceeds from land sales must not be used for covering their recurring costs (and delaying politically difficult decisions on users charges). They must
use the proceeds of land sales mainly to finance investment and capital works.
3. Most municipal bodies have a large number of properties given on rents or lease. However, the earnings out of these properties are quite low due to
obvious reasons.
Issues in Decentralised Planning
71/97
7/7/2014
Evernote Export
1. Issues
1. Decentralised planning has not been institutionalized yet.
1. A big reason is that many state acts do not contain provisions for preparing development plans at the panchayat level.
2. Even in States which have such provision, the task is not taken seriously because of the following reasons:
1. Real devolution of functions has not taken place. In the absence of meaningful devolution, the local bodies cannot be expected to be
motivated to take up planning seriously for they would not have control over the implementation.
2. Lack of untied funds means panchayats have very little money left for their own activities which they may want to include in the plan.
3. Even the PC had not taken much interest in PRI level planning. The State Planning Boards also failed to encourage it.
3. Currently, separate district plans are required to be prepared for each of the major CSS.
2. Recommendations
1. Effective devolution.
2. Increasing untied funds and reducing tied funds in CSS.
3. Some CSS are sector specific, such as health or education. It should be made mandatory to include sectoral plans into overall development
planning at the local level.
Role of the District Planning Committee
1. Issues
1. One type of confusion relates to its nature: is it a collection of the Panchayat and Municipal plans? Or a macro-view for realizing synergies is
needed? What are the activities which require a macro perspective?
2. The other type of confusion relates to the domain of planning. Will the district plans consist of only those functions which have been devolved to the
local bodies? How should planning be made for the CSS encroaching upon their domain?
3. Planning is an essential function of government. Creating a separate authority with no governmental authority has no logic.
4. DPC has up to one-fifth of the total members can be nominated. A nominated member can also be the Chairperson of the DPC. Nomination could
be used as a convenient tool available to the ruling party for narrow political considerations. Some States have the system of nominating a minister
as head of the Committee, thus converting the DPC into a power centre. This renders DPC weak.
2. Recommendations
1. Currently, separate district plans are required to be prepared for each of the major CSS. CSS guidelines that entrust the task of district level of
planning to parastatals need to be modified to include DPC.
2. The PC should inform the states that the DPC will be the sole body to plan at the district level. A time frame must be specified for this transition.
3. Professional support from parastatals, line departments, expert support from outside should be provided to the DPC.
4. System of nomination in DPCs should be done away with.
MPC vs DPC
1. Metro areas are under MPCs but also include many areas under DPCs. The peri-urban areas under the DPCs are all likely to be urbanised in few years
and become closely integrated with the metro area.
2. There are also issues of externalities. Some of the urban facilities have a larger clientele outside its area or a source which is outside its jurisdiction. For
example, transportation, source of water supply, areas of landfills.
3. One solution could be that all urban / peri-urban regions falling within metro area would come under one MPC and no DPC for such districts/portions of
districts would be constituted. It may also be necessary to have Chairpersons of Panchayats and of the local bodies in the MPCs.
Urban Planning
Specific Issues in Urban Planning
1. Outdated laws: Laws should not be static and must be updated keeping in mind the current realities. So the restrictive laws need to be done away with so
that new lands can come on the market at rates commensurate with demand. Currently, outdated and complex laws restrict rather than encourage new
land to come under development. This leads to prolification of unauthorized colonies and illegal construction.
2. Issue of parastatals: Parastatals should be merged into local governments eliminating the present conflict between them and local bodies.
3. Lack of plan enforcement: Town Planning is a holistic concept. But in most cities town planning ends with preparation of zoning regulations. The
enforcement of these regulations is ignored completely.
4. Corruption: Changes to and waivers from the city development plan are rampant due to corruption. Once the plan is finalised, no authority should have any
discretion to grant any exemption or waiver. It should have a thirty-year perspective to be revised after every ten years through a participative and
transparent process.
Peri-urban Areas
1. They are the outskirts of a large urban area, more accurately areas which are outside urban jurisdiction but are in the process of urbanisation and have
certain characteristics of urban areas.
2. Such areas are created partly by the influx from the deeper countryside, but also from those in the cities seeking to move out some migrating from
congested areas to larger residences or new industries and some shifting away from expensive city living.
3. Their issues are:
1. Land use change, from agricultural to residential or industrial.
2. Changes in the use of natural resources such as water and forestry.
3. New forms of pollution and waste management.
4. Creation of infrastructure.
5. Managing a new cultural ethos.
4. Further, to be able to control untidy sprawls, it is necessary to ensure, that the planning laws applicable to a present city area are also applicable to future
areas of the city. It cannot be that a village Panchayat gives permission for a certain type of land use which a few years later would go against the citys
land use when that area is absorbed into the city.
Regional Planning Focussing on Corridors and not Cities
1. Corridor based development should be followed to improve access to arterial transport systems, and promote balanced urbanisation and development.
DMIC is an example.
72/97
7/7/2014
Evernote Export
Federalism
Created: 5/30/2013 1:14 PM
Source: http://interstatecouncil.nic.in/Green_Federalism.html
73/97
7/7/2014
Evernote Export
Federalism and Innovation

1. Culturally, India was always one country through all of history. Politically however, we were, more often than not, divided. And that political division was our
competitive strength, for it encouraged innovation.
2. Our political divisions allowed our innovators and free thinkers to have options. If the Palas didn't like your ideas, you could go to the Cholas. If the Tuluvas
of Vijaynagar didn't like your thoughts, you could go to the Bahmani Sultans. Since we were culturally one country, travel was easy.
3. So can we argue the opposite? Does centralisation harm innovation? More often than not, yes, it does. A Chinese emperor, who ruled all of China with an
iron hand, banned maritime activities. Nobody in China dared to rebel against the anti-innovation decision of the emperor. The long-term impact was that it
wasn't Chinese ships that colonised the world, but European ones. Rejection of the Gutenberg press by Emperor Akbar is another example.
4. But decentralization brings about wars and chaos. Thankfully due to our democratic model today, we have learnt to manage it. Hence decentralization is
the direction we should move in.
Cooperative Federalism in India

Different Concepts of Federalism
1. Unilateral Federalism: Federal government, by and large directs provincial policy, usually through conditional funding. Thus, the models major weakness
is that it infringes upon jurisdictional autonomy. On the other hand, the model is considered the most effective for national programs, better coordination,
minimum overlap between policies, and advantages of economies of scale.
2. Collaborative Federalism: Here the federal and provincial governments work collaboratively to attain policy goals, and there is no coercion on part of the
federal government.
3. Cooperative Federalism: It describes a system of federalism where there needs to be cooperation between levels of government to get things done in the
system. The Federal Government does not deliver health services but does provide the regulatory framework within which the regional governments
provide health care.
Concept
1. It is the practice of administrative co-operation between general and regional governments, the partial dependence of regional governments upon
payments from the general governments, and the fact that general governments, by the use of conditional grants, frequently promote developments in
matters which are constitutionally assigned to the regions. It is characterized by increasing interdependence of federal and regional governments, a
development that does not destroy the federal principle.
2. Center state balance: Article 3 of the Constitution, the exclusive power to form federal units. However, any legislative proposal in this regard cannot be
introduced without obtaining prior Presidential (i.e., Central Government) sanction, which, in turn, must ascertain the views of the affected States before
approving the introduction of such a bill in the Parliament. In practice it is rarely possible for the Parliament to ignore the views of the States.
Constitutional Provisions
74/97
7/7/2014
1.
2.
3.
4.
Evernote Export
Intergovernmental delegation of powers (Articles 258, 258A).
Directives given by the Centre to the States (Articles 256, 257).
All India Services (Article 312).
Inter-State Council (Article 263
Evolution in India
However, political
developments, particularly in the post-1967 period somewhat belied these expectations. States allege that
systematic maneuvers were being put to practice by the Union Government for centralization, which caused political distortions and
federal tensions.
2. With the Congress obtaining near two-thirds majority in the 1972 Parliamentary Elections, reaping on the success of the
Bangladesh liberation war, the federal government started arguing the case for a strong centre not only to serve the interests of
balanced development but also to safeguard the unity and integrity of the country. The Central government adopted increasingly
1. It was expected that, over a period, cooperative federalism will take roots in India given our constitutional machinery setup.
interventionist practices in the States. Office of the Governor and Emergency provisions provided in the Constitution, particularly those of Article 356, were
used to keep and maintain Unions pre-eminence.
3. The imposition of emergency and the passage of 42nd Amendment only added to the demand by the States for greater devolution of powers. There were,
therefore, concerted efforts during this period by non Congress parties to demand for State autonomy vigorously.
Present Situation
1. Security
1. There is a clear need to further strengthen the Union when it comes to the security question including internal.
2. However the tilt in favor of the Union has increasingly accentuated over the years even outside the security needs and it is felt in legislative,
administrative and financial matters.
2. Administrative
1. A large number of regulatory bodies (UGC, AICTE, NCERT, ICSSR, ICAR etc.) have in effect restricted state governments' powers on education.
They are often justified by the need for co-ordinated and planned development of education, but this claim can apply to practically every field of
governance.
2. In NREGA, the Parliament has prescribed the role to be played by the PRIs and not left it open to the State Governments to determine the nature
and scope of that role.
3. Financial
1. The problem today is significant transfers are taking place through mechanisms not envisaged by the Constitution. Allegations of political
considerations have vitiated Centre-State relations.
2. The available scheme of fiscal transfers, though asymmetric, does provide a just and equitable framework for fiscal federalism. The problem is when
distortions occur in fiscal arrangements due to politics in devolution, particularly through non-Constitutional channels. The challenge of placing
fiscal transfers in a transparent and rule-based framework is indeed of great priority.
3. Perhaps there is a case to make the Finance Commission to be a permanent body with a regular Secretariat and allow State participation in its
Constitution and in formulation of terms of reference.
Legislative Supremacy of Union
1.
2.
3.
4.
5.
6.
Power of Parliament to legislate in national interest under a Resolution of the Upper House (Article 249).
Power of Parliament to legislate during operation of Emergency (Article 250).
Parliament's power to legislate with the consent of States (Article 252).
Legislation for giving effect to international treaties and agreements (Article 253).
Power to legislate in case of failure of Constitutional machinery in States(Article 356).
Power of Governor to reserve any Bill passed by the State Assembly for consideration of the President, sometimes for an indefinite period!
Executive Supremacy of the Union

1. Article 257(1) says that the executive power of the State shall be so exercised as not to impede the executive power of the Union. The Centre is
empowered to give directions to States in this regard. If directions are not complied, emergency provisions may be invoked by the Centre.
Federal Conflict Management Bodies
1. Art 263: The Inter-State Council is supposed to be a body for intergovernmental consultation and co-operation. But it has not been given the powers to
inquire and advise on disputes between States. It can only discuss subjects of common interest and make recommendations. It meets rarely and has not
been able to work to its full potential.
2. Art 262: It provides for the resolution of inter-state water disputes which also failed to contain many disputes which reached it despite repeated hearings
and decisions.
Coalition Politics - Is it a Problem?
1. Coalition politics has emerged as the product of conscious electoral choices made by the people. It would be incorrect to assert that such conscious
democratic choices have been entirely without logic or reason.
2. It indicates that the existing political parties must have been perceived to have failed in addressing the unique problems of several regions of the country.
These electoral choices actually go some way towards making the Central and State Governments more accountable.
3. Very often these regional parties have been resorting to sectarian identities and appeals as the means of mobilization. This development may appear to be
a threat.
1. But unity in diversity actually calls for the preservation and celebration of diverse identities.
2. As long as all political parties express full faith in the Constitution of India, the danger of the unity of the nation being called into question does not
really exist.
3. True, at times it may appear that some political parties or forces are stretching the political fabric a bit too much. This is an inevitable part of the
political growth process. The solution to the problems ultimately lies in the political realm, rather than legal or constitutional systems.
75/97
7/7/2014
Evernote Export
Sarkaria Commission
Recommendations
1. Constitution of Inter- State Council (Art 263).
2. Strengthening of the Local-self Governing Bodies.
3. Governor
1. It laid down guiding principles for the Governors in choosing Chief Ministers.
2. The Commission recommended that in order to ensure effective consultation with the State Chief Minister in selection of a person to be appointed
as Governor, the procedure of consultation should be prescribed in the Constitution itself by suitably amending Article 155. The government has not
agreed to it and merely said it can be adopted as a convention.
4. Prior consultation with the States, individually and collectively, in respect of overlapping and concurrent jurisdictions, should be adhered to, except in rare
and exceptional cases.
5. Ordinarily, the Union should occupy only that much field of a concurrent subject on which uniformity of policy and action is essential in the larger interest
of the Nation, leaving the rest and the details for action by the States within the broader framework of the policy laid down in the Union law.
6. Article 356 should be used very sparingly, in extreme cases and only as a matter of last resort.
7. Net proceeds of corporation tax may be made shareable with the States.
Puncchi Commission
Needs to Review Central - State Relations Since Sark aria Commission
1.
2.
3.
4.
5.
Coalition governments at centre.

Economic reforms have changed centre - state relations.
Internal security challenges.
PRIs.
Sarkaria Commission did not consider the issue of international treaties in detail as treaties played a minimal role in law making at that time.
Subsequently, however, with the advent of the World Trade Organization, and Indo-US Nuclear Deal, questions arise as to whether the power to enter into
treaties and create international law should vest entirely with the Union without any necessary approval from either Parliament or the States.
Inter State Council (Art 263)

Composition
1. It consists of 6 union ministers (PM + HM + law + roadways + railways + agriculture + finance) and CMs of all states/UTs.
Important Recommendations of the Council
1.
2.
3.
4.
5.
6.
7.
8.
9.
Transfer of residuary powers from the Union to the Concurrent List (Not Accepted).
Prior consultation with States, except in cases of urgency, for legislations under List-III. (Accepted in principle).
Enactment of a central legislation to allow urban local bodies to tax Union Government properties. (Under consideration).
Articles 200 and 201 of the Constitution should be amended laying down time limits of 1 month for Governor and 4 months for the President respectively
for assenting to Bills, failing which the Bill would be deemed to have been passed. (Not accepted).
Obligatory consultations with State Chief Ministers before appointing Governors. (Not accepted).
Governors not returning to active politics except seeking election as President or Vice President. (Not accepted).
While choosing a Chief Minister, the leader of the party having an absolute majority in the Assembly should automatically be asked to become the Chief
Minister and if there is no such party, the Governor must select a Chief Minister from among the parties or groups in the following order of preference:
1. An alliance of parties that was formed prior to the elections.
2. The largest single party staking its claim with the support of others, including independents.
3. A post-electoral coalition of parties, with the partners joining government.
4. A post-electoral alliance of parties with some of the alliance-parties joining the government and the remaining parties including
independents supporting the government from outside. (Accepted).
80th Amendment Act, 2000.
Early revision of the royalty rates on coal. (Implemented).
Issues
1. The Council is supposed to be a body for intergovernmental consultation and co-operation. But it has not been given the powers to inquire and advise
on disputes between States. It can only discuss subjects of common interest and make recommendations.
2. It meets rarely and has not been able to work to its full potential. It was created in 1988 but met for the first time in 1996.
Recommendations
1. Centre - state relations
1. All major non-financial issues involving Centre-State relations must be placed before it.
2. It should also be given the power to inquire and advise upon the disputes between States.
2. Concurrent / overlapping jurisdictions
1. It should be given a continuing auditing role in such matters.
2. Comments of the Inter-State Council should accompany a concurrent list Bill when it is introduced in Parliament.
3. Any matters of transferring subjects out of List 2 into List 3 should be referred to the Council for its recommendations.
3. Functioning
1. The Council may use a mechanism like a Committee of State Ministers to thrash out contentious issues.
2. Meetings must be convened at least twice a year. The agenda of the meetings should be specific instead of general addresses by CMs. The
agenda of the meeting should be prepared in consultation with the States and circulated well in advance. Pre-meeting exchange of notes should
76/97
7/7/2014
Evernote Export
also take place.
3. The Secretariat of the council should have better representation from the States.
4. The Council should have expert advisory bodies and quasi - judicial support.
Importance of Council - Primary Education Issue

1. The conferences of Chief Ministers and Education Ministers were found to be an inadequate mechanism. Even the NDC couldn't work out a cohesive
policy acceptable to all states. The strategy of an Empowered Committee of States Ministers was not invoked in this case.
2. The issue was not merely sharing of financial burden, though that was an important one. The main issue was that though the principal actors are to be the
state governments, the way the process is perceived gives the impression that it is the Union's baby. This reduces the ownership and willingness of the
states.
3. It is in such issues that the Inter-State Council can play a very important role and can lead to make or break of vital national programmes.
Should the decisions of the Inter-State Council be made legally binding?
1. It is not in consonance with the constitutional scheme of the separation of powers. Whatever powers are within the respective domains of the Centre and
State Governments are - constitutionally speaking - theirs to exercise as they deem fit.
2. Furthermore, both the Central Government as well as State Governments are elected democratically, and are ultimately responsible for their
decisions through the electoral process.
3. Utility of the council
1. The Council is an extremely useful mechanism for consensus-building and voluntary settlement of disputes. Co-operative federalism is easily
endorsed but difficult to practice without adequate means of consultation at all levels of government.
The Zonal Councils
1. They were established after 1956 to look into:
1. Any matter of common interest in the field of planning.
2. Any matter concerning border disputes, linguistic minorities or inter-State transport.
3. Any matter connected with, or arising out of, the re-organisation of States.
2. These Councils consist of a Union Minister nominated by the President who acts as the Chairman and the Chief Ministers of States in the region along
with two Ministers each from the member-States, nominated by the Governor as members.
3. The Council is aided by a number of Advisers i.e Chief Secretary and one Officer of each of the member-States and an official nominated by the Planning
Commission.
4. In the years immediately following the States reorganisation, the Zonal Councils were very active and helped resolve many issues. Over time however, the
Zonal Councils met only occasionally. The Secretariats have ceased to be operational.
5. They should be abolished now as they have served the purpose.
NDC and Planning Commission
1. Frequent meetings of NDC should be held (at least two meetings in a year).
2. These bodies have functioned almost as an extension of the Union Government or its agencies. They are created through an executive or administrative
order of the Union Government and therefore perceive themselves as Union appointees.
3. At present the Members and Experts of the Planning Commission are all nominated by the Union Government. Representation needs to be given to states
in the Planning Commission.
Legislative Issues in Centre - State Relations

Transfer More Subjects to State List
1. The case for centralization which existed at the time of framing the Constitution does not exist anymore and what is needed now is a conscious policy for
strengthening the States by enriching the State List and following the principle of "Subsidiarity".
2. Sarkaria Commission recommended
1. In matters of concurrent or overlapping jurisdiction, a process of mutual consultation should be followed. It must be evolved as a convention.
2. Ordinarily, the Union should occupy only that much field of a concurrent subject on which uniformity of policy and action is essential in the
larger interest of the nation leaving the rest for State action within the broad framework of the policy laid down by the Union Law.
3. Whenever the Union proposes to legislate on a matter in the Concurrent List, there should be prior consultation. A summary of the views of the
State Governments and the comments of the Inter-State Council should accompany the Bill when it is introduced in Parliament.
4. Residuary powers excepting matters relating to taxation, should be placed in the Concurrent List.
Transfer of Subjects from States List to Concurrent List
1. Once a subject has been transferred so, there should be a joint institutional mechanism to review its administration under the Central law to see whether it
has achieved its objectives and whether it is desirable to continue the arrangement.
2. If the findings are not positive it should be restored to its original position in State List.
Equal Representation of States in the Rajya Sabha
1. Yes
1. Since the Lok Sabha is directly linked to the population, delinking the relation between population and number of seats in the Rajya Sabha would
only create a balance of power between states.
2. A Resolution under Article 249 which lacks the support of almost two-thirds of the total number of states can possibly get passed with the support
of nominated members if it is pushed by the larger states. This seems more so in the case of growing regional parties and coalition politics. A
coalition of parties ruling the major states can dominate RS.
2. No
1. The Sarkaria Commission was not in favor as:
1. The Rajya Sabha doesn't exclusively represent the federal principle except when exercising the special powers under Articles 249 and 312.
77/97
7/7/2014
Evernote Export
2. The purpose of having nominated members also made it clear that the Rajya Sabha was not envisaged to function like a federal chamber
only.
3. It also has legislative function to prevent hasty legislation.
4. It also has the function to bring elders who would not be interested in active politics. The object of RS as envisaged was to
hold dignified debates and to share the experience of seasoned persons.
2. The greatest opponents of such a change would be those states that enjoy larger number of representatives in the Rajya Sabha. This would defeat
the amendment bill.
3. States of the Indian Union were not independent entities having pre-existing rights or powers anterior to or apart from the Constitution like in US.
4. The 2/3rd majority argument seems weak in practice because members in RS vote along party lines. Second Chambers are increasingly becoming
'national' institutions rather than representing states. However, this is weakened by the growing regional parties and coalition politics.
Domicile Requirement in Rajya Sabha

1. The law as it stood before The Representation of People (Amendment) Act, 2003, had prescribed that one of the qualifications to become the
representative of a particular state in the Rajya Sabha was being an elector of a Parliamentary constituency in that State.
2. However, the court observed that the Upper House already includes nominated members who have no state linkages.
3. The object of RS as envisaged was to hold dignified debates and to share the experience of seasoned persons. From this premise the Court concluded
that residence was never a constitutional requirement.
Bills Reserved for President's Consideration (Art 200, Art 201)
1. The Governor is supposed to act as soon as possible after a bill is presented to him. In case he refers it to the president, however, the president is under
no compulsion to "act as soon as possible after presentation". This means that a state bill can be blocked indefinitely.
2. Allowing the democratic will of the State Legislature to be thwarted by Executive fiat is questionable in the context of 'basic features' of the Constitution.
Therefore the President should be given 6 months to decide and Art 201 needs to be amended.
3. If the President, for any reason, is unable to give his assent, it may be desirable for the President to make a reference to the Supreme Court under Article
143 for an opinion before finally making up his mind on the issue.
Treaty Making Power of the Union

Should Parliament's Ratification be Made Mandatory?
1. Constitutional position
1. Art 73 allows the executive to enter into international treaties.
2. Art 253 provides that notwithstanding any distribution of legislative power, the Parliament has the power to enact legislations to give effect to
treaties and international agreements.
3. Though the Parliament is vested with the power to enact laws in relation to the entering into and negotiation of treaties, no law in this regard has
been enacted till date. Therefore, Parliamentary approval for every treaty is not the norm.
2. Court judgments
1. The power to enter into treaties and implement them is comprehensive and unqualified, but courts can impose restrictions on this power. A treaty,
for instance, cannot make provisions which would, in effect, amend the basic features of the Constitution, for it could not have been intended that a
power conferred by the Constitution would, without an amendment to the Constitution, destroy the Constitution.
2. Supreme Court declared in Vishakha that citizens can seek relief in courts on the basis of international treaties if the country has ratified them and
they are not inconsistent with the law and constitutional provisions.
3. No, not needed
1. Where parliamentary approval is required, it has led to certain complications. e.g. US Senate and Treaty of Versailles. In Indian case, treaties
between India and Nepal on harnessing water resources of Mahakali and other rivers and the other with Bangladesh on sharing of the Ganga waters
would not have been possible had these agreements been submitted to Parliament for ratification - particularly the treaty with Bangladesh as it
would have been extremely difficult to obtain such ratification. One of the reasons for the success of European Union and ASEAN is that the
decision makers were by and large free to take decisions.
2. At the same time, the Parliament should not be kept in dark or that the authority of the Parliament should be denied. Thus any WTO Agreements,
signed and ratified by the GoI can be implemented only by Parliament by making a law.
3. In view of the fact that treaties may relate to all types of issues within or outside the States' concern, there cannot be a uniform procedure for
exercise of the power. Furthermore, since treaty making involves complex, prolonged, multi-level negotiations wherein adjustments, compromises
and give and take arrangements, it is not possible to bind down the negotiating team with all the details.
4. Under our system of parliamentary government, executive has to render continuous accountability to Parliament anyways.
4. Yes, needed
1. It is well within the competence of parliament to regulate treaty making power of GoI.
2. In a democracy like ours, there is no room for non-accountability.
3. Fundamentals of democracy
1. Article 73 states that,'---the executive power of the Union shall extend to the matters with respect to which Parliament has powers to make
laws.
2. It also means that the Union Government cannot exercise its executive powers beyond the legislative powers of the Union.
3. Under this Art, there is an underlying assumption that, before the Union Government exercises its executive power, there is a law enacted
by Parliament on the subject concerned.
4. Some argue that the provisions of Article 73 give power to the Executive to act on subjects within the jurisdiction of Parliament, even if
Parliament does not make a law on those subjects.
5. But this is a distortion of Parliament's supreme control over the Executive. If this interpretation is accepted then the Union Executive can act
on all subjects on which Parliament has to make law, without there being any law made by Parliament. You can thus do away with
Parliament and Parliament's duties to make laws. We will then have an autocratic government.
6. Democracy presumes there should be a rule of law and all Executive actions will be supported by law and that there shall be no arbitrary
action by any authority, including the Union Executive.
5. Recommendations
1. Parliament should make a law to regulate the treaty-making power of the GoI.
1. The law must clearly delineate the exercise of this power. In particular, it must provide for clear and meaningful involvement of Parliament in
78/97
7/7/2014
Evernote Export
treaty-making.
2. There can be a committee of parliament which must decide within 4 weeks whether the treaty should be allowed to be signed by the
Executive without referring the matter for consideration to Parliament or whether it should be referred to Parliament for consideration.
3. It should categorize the treaties into: (a) those that the executive can negotiate and conclude on its own and then place before Parliament
by way of information. In this category may be included simple bilateral treaties and agreements which do not affect the economy or the
rights of the citizens. (b) those treaties which the executive can negotiate and sign but shall not ratify until they are approved by the
Parliament. (c) important, multi-lateral treaties concerning trade, services, investment, etc. (e.g. WTO, Indo-US nuclear deal), where the
Parliament must be involved even at the stage of negotiation.
4. If necessary, a time frame could be prescribed for Parliament to take a decision on the treaties, failing which it would
be deemed to have been ratified.

Should States be Consulted in Treaties Which Affect Them?
1. Present mechanisms
1. The States can consult through the Inter-State Council on all issues including treaties as it has a mandate which includes investigating and
discussing subjects in which some or all of the States or the Union and one or more of the States, have a common interest.
2. With regard to WTO negotiations, presently the Department of Commerce does have periodic meetings with state governments both to sensitize
them on the progress of the negotiations and the issues under consideration as also to take on board their suggestions. These meetings have to be
made more explicit and formal.
2. Issues
1. The area of legislative competence of States is being eroded indirectly by the centre entering into treaties with other countries. Hence effective
consultation with states is needed before adopting an international convention in respect of matters in the State List.
2. If a treaty entered into by the Union Government casts obligations on the State Government, then under such circumstances, the Union
Government should provide the necessary funds and other assistance to implement the treaty.
3. Recommendations
1. Treaties which affect the rights and obligations of citizens as well as affect subjects in State List should be negotiated with greater involvement of
States. This can assume a twofold procedure. Firstly, a note on the subject of the proposed treaty and the national interests involved may be
prepared by the concerned Union Ministry and circulated to States for their views and suggestions to brief the negotiating team. Secondly, an
"Empowered Committee" of concerned Ministers of States and the Centre be asked to study the provisions of the agreement and recommend to
Government to ratify the treaty in whole or conditionally with reservations on certain provisions.
2. There may be treaties or agreements which, when implemented, put obligations on particular States affecting its financial and administrative
capacities. In such situations, the Centre should compensate the states. Financial implications on State finances arising out of treaties should be
a permanent term of reference to the Finance Commissions.
Governor and Centre - State Relations

Governor's Immunity
1. Article 361 states that neither the President nor the Governor can be sued for executive actions. Even where the Governor's bonafide is in question while
exercising his discretionary powers, he cannot be called to enter upon defense. This should be done away with in discretionary cases.
Politicization of Governors - Appointment and Removal
1. The Union Government's stand however is that if a party came to power with a social and economic agenda and if it was found that the Governor was not
in sync with it but would rather be antithetical to its policies, then the Governor could be removed. This is the basis of the 'pleasure doctrine'.
2. The Sarkaria Commission recommended that a person to be appointed as a Governor should satisfy the following criteria:1. He should be eminent in some walk of life.
2. He should be a person from outside the State.
3. He should be a person who has not taken too great a part in politics generally and particularly in the recent past
3. The words and phrases like "eminent", "detached figure", "not taken active part in politics" are susceptible to varying interpretations and parties in power
at the Centre seem to have given scant attention to such criteria. The result has been politicization of Governorship and sometimes people unworthy of
holding such high Constitutional positions are getting appointed.
4. The Centre should adopt strict guidelines as recommended in the Sarkaria report and follow its mandate in letter and spirit. Appointment of the Governor
should be entrusted to a committee.
5. The Governor, on demitting his office, should not be eligible for any other appointment except for a second term as Governor, or Vice-President or
President. Such a convention should also require that after quitting or laying down his office, the Governor shall not return to active partisan politics.
Should Governor be Impeached lik e Judges?
1. No. Because the Governor's role has a heavy political content and discretion and it is not possible to lay down a set of concrete standards and norms with
reference to which a specific charge against a Governor may be examined.
2. Governors should be given a fixed tenure of 5 years and their removal should not be at the sweet will of the centre. Only in exceptional circumstances, he
may be removed after being given a reasonable opportunity.
3. In case of such termination or resignation, the Government should lay before Parliament a statement explaining the circumstances leading to the removal.
Discretionary Powers of the Governor - Consideration of a Bill
1. Prescribe a time-limit - say a period of 3 months - within which the Governor should take a decision whether to grant assent or to reserve it for
the consideration of the President.
2. Delete the words "or that he withholds assent therefrom". In other words, the power to withhold assent, conferred upon the Governor, by Article 200
should be done away with.
3. If the Bill is reserved for the consideration of the President, there should be a time-limit, say of three months, within which the President should take
a decision whether to accord his assent or to direct the Governor to return it to the State Legislature or to seek the opinion of the Supreme Court
regarding the constitutionality of the Act under Article 143.
4. When the State Legislature reconsiders and passes the Bill (with or without amendments) after it is returned by the Governor pursuant to the direction
79/97
7/7/2014
Evernote Export
of the President, the President should be bound to grant his assent.

5. To provide that a "Money Bill" cannot be reserved by the Governor for the consideration of the President.
6. It may be more advisable to delete altogether the words in Article 200 empowering the Governor to reserve a Bill for the consideration of the President
except in the case where the Constitution requires him to do so.
Coalition Government and Defections of Parties
1. A pre-election coalition should be treated as one political party for the purpose of the Tenth Schedule to the Constitution of India (law relating to
defections).
Sanction of the Governor for Prosecution of Ministers
1. The question which arises is whether a Governor can act in his discretion and against the advice of the Council of Ministers in a matter of grant of sanction
for prosecution of Ministers for offences under the Prevention of Corruption Act.
2. In such situation there bias is inherent in the advice of the Council of Ministers. If the Governor doesn't act in his own discretion there would be a complete
breakdown of the rule of law.
Ad Hoc Reports from the Governor to the President
1. Fortnightly report
1. Each Governor sends to the President every fortnight a report on important developments that have taken place in the administration of the State.
2. The practice generally followed is to send a copy of this report to the Chief Minister. These reports should create mutual trust between the Governor
and the Chief Minister. It should therefore be made obligatory for the Governor to make a copy of the fortnightly report available to the Chief
Minister.
2. Ad Hoc Reports
1. The Governor may be obliged to report to the President some important developments together with his own assessment of them.
2. He may consider it inadvisable to endorse a copy of such a report to the Chief Minister. For the same reason above, while sending these ah-hoc or
fortnightly reports the Governor should normally take his Chief Minister into confidence, unless there are over-riding reasons to the contrary.
Emergency Provisions and Centre - State Relations

Art 355
1. Article 355 imposes an obligation upon the Union "to protect every State against external aggression and internal disturbance and to ensure that the
government of every State is carried on in accordance with the provisions of this Constitution".
2. The Constitution does not further elaborate on how this duty of the Union is to be discharged. This is left to the discretion and judgment of the Union. Thus
Article 355 not only imposes a duty on the Union but also grants it, by necessary implication, the power of doing all such acts and employing such means
as are essentially and reasonably necessary for the effective performance of that duty.
3. However, it may be noted that the Constitution does not, under Article 355, permit suspension of fundamental rights or change in the scheme of
distribution of mutually exclusive powers with respect to matters in List I and List II. Except to the extent of the use of the forces of the Union in a situation
of violent upheaval or disturbance in a State, the other constitutional provisions governing Union-State relationships continue as before.
4. Unless a National Emergency is proclaimed under Article 352, or powers of the State Government are suspended under Article 356, the Union
Government cannot assume sole responsibility for quelling such an internal disturbance in a State to the exclusion of the State authorities charged with
the maintenance of public order.
Local Emergency
1. It can be imposed within the territory of a state in cases of widespread violence, or a large scale natural disaster and which, in the opinion of the Union, a)
is beyond the means of the State to control and/or; b) the State is unwilling to control or react to.
2. Needed
1. State Government can continue to function and the Legislative Assembly would not have to be dissolved.
2. Response of the Central Government would be issue specific and the Central Government would have to exit the moment the situation is back
under control. Examples are Gujarat riots, Kosi floods.
3. It would also reduce the temptation of the Centre to misuse the emergency provisions in Article 352 and Article 356.
4. Art 355 casts specific duty on the Union. This will simply be codifying how the duty can be discharged. Given the strict parameters now set for
invoking the emergency provisions under Articles 352 and 356, exercise of duty under Article 355 should be codified.
3. Not needed
1. There are other existing provisions like the Disturbed Areas Act.
2. It will lead to undermining of federal system.
Framework Law for Exercise of Power Under Article 355
1. Parameters which constitute 'internal disturbance' should be objectively defined.
2. Paramount Responsibility with the State: It must entrust the first and paramount responsibility of tackling any such situation to the State Government.
3. Situations in which the Union can Intervene: The Union can intervene only when the crisis is occurring to an extent that the State is incapable of or
unwilling to tackle the situation. Parliamentary approval must be sought.
4. Other usual safeguards should apply.
Power of Union to give Direction to States

80/97
7/7/2014
Evernote Export
1. Art 256: The executive power of every State shall be so exercised as to ensure compliance with the laws made by Parliament and the executive power of
the Union shall extend to the giving of such directions to a State as necessary for that purpose.
2. Art 257(1): The executive power of every State shall be so exercised as not to impede or prejudice the exercise of the executive power of the Union, and
the executive power of the Union shall extend to the giving of such directions to a State as necessary for that purpose.
Issues
1. It is axiomatic that the power to enact legislation would be entirely meaningless without the power to enforce such valid law, and that is the mandate of
Article 256. As such, it is difficult to accept the argument of states that Article 256 is destructive of the principles of federalism.
Judiciary and Centre - State Relations

Do we need an All-India Judicial Service?
1. India has a unified judiciary. Central and State laws are enforced and interpreted by the same set of Courts. This makes the constitution of an All India
Judicial Service, as envisaged under Article 312 itself, a very natural phenomenon.
2. The judicial responsibilities that would be performed by a Judge in one State would be substantially the same as in any other State. There would,
evidently, be laws enacted in a given State that do not exist in other States, and it is possible that certain types of legal disputes tend to arise more in one
State than another for historical, geographical or cultural reasons. Nevertheless, the bulk of the civil and criminal litigation that would be adjudicated would
be very similar in any part of the country.
3. Creation of such an All India judicial service, if accompanied by at least reasonably good remuneration being offered to recruits, would go at least some
way towards attracting the best legal talent in the country to the Judiciary, at a young age.
Subordinate Courts
1. In 1976, the subject of subordinate courts was brought into the Concurrent List. But practically, nothing has been done by the Union Government by way
of financial support to the Subordinate Courts.
2. Art 247 provides that Parliament may by law, provide for the establishment of any additional courts. The parliament has not made any law so far on it.
3. Art 73 states that the Executive power of the Union will not extend to a subject in the Concurrent List unless such executive power is conferred by the
Constitution or by law made by the Parliament. And the parliament has not made any law on the matter so far.
4. So the States blame the Centre for not providing adequate funds and the Centre seem to think it is not part of its responsibility to support the subordinate
courts.
1. The Central Government has not established sufficient number of courts for administering Central Laws and the entire burden of administering the
central laws has been thrown upon the courts established by the State Governments.
2. The present practice on the part of Union Ministries while presenting any Bills is to say that the expenditure on the Courts will be borne by the
State Governments.
5. If the scheme of division of powers is analyzed, it becomes obvious that the expenditure on the Subordinate Courts where Parliament legislates on
subjects in List I should be borne by the Union Government, whereas for laws made by the State Legislature on subjects in List II, such expenditure
should be borne by the State Government. On legislation in respect of subjects in List III is concerned the natural conclusion would be that if the
legislation is brought in by the Parliament such expenditure must be borne by the Union Government and where such legislation is brought in by the State
legislature, such expenditure must be borne by the State Governments.
6. As a general principle, it is argued, that under the doctrine of separation of powers, it is not open to any one of the three branches to underestimate the
legitimate needs of the other branches so as to make it difficult for those branches to discharge their Constitutional obligations satisfactorily.
Financial Issues and Centre - State Relations

1. All the taxes in the Union List for a part of the sharable pool with the exception of:
1. Those referred to in Articles 268 and 269. Article 268 refers to duties levied by the Union but collected and appropriated by the States. Under
Article 269, taxes on the sale of goods and taxes on the consignment of goods shall be collected by the Government of India but shall be assigned
to States.
2. Surcharges referred to in Article 271.
3. Any cesses levied for specific purposes.
2. Article 275 (1) provides for grants-in-aid as Parliament may determine. These grants can be dispense only on the recommendations of the FC.
3. Under Article 282, the Union can make any grants. Unlike the grants under Article 275 which need FC recommendation, grants under Article 282 can be
made with no such restriction.
4. Clause (2) of Article 293 imposes the condition that a State may not raise any loan if any part of the loan extended by the Government of India remains
outstanding. In such cases, the permission of the Government of India is required for a State to raise a loan.
Sark aria Commission / NCRWC / Puncchi Commission Recommendations
1. Revenues
1. Art 268 and Art 269 should be periodically revised jointly by centre and states.
2. The monetary limit on tax on professions should be revised. Parliament may be vested with powers to do so instead of amending the constitution
each time.
3. Surcharges and cesses should not be levied by the Union Government except for a specific purpose and for a strictly limited period.
4. The review of royalty rates on major minerals, petroleum and natural gas should be done every two years.
5. Interstate Trade and Commerce Commission under Article 307 should be established to ensure removal of barriers to inter-State trade and
commerce;
2. Expenditure Reforms
1. Central and State governments should take into account the high opportunity cost of populist measures.
2. It is necessary that an annual paper on subsidies is prepared by the PC.
3. Planning
81/97
7/7/2014
Evernote Export
1.
2.
3.
4.
State Planning Boards should be strengthened.

Close and full involvement of the States at all stages of plan formulation is very essential.
The practice of States submitting inflated plan proposals should be firmly discouraged.
Besides the general reviews contained in the States' Annual Plan and the mid-term appraisal, a quinquennial review should be done which should
help in the next Five-Year Plan.
5. Consultation with District Planning Boards should be made obligatory for formulating plans at higher levels.
4. CSS
1. The number of CSS should be kept to the minimum.
2. The need for the Union Government initiating pilot projects even in regard to subjects in the States sphere carrying high national priority is
recognized. But these should be formulated in prior consultation with the States. Once a programme has passed the pilot stage and has been
accepted as desirable for implementation on a larger scale, it should appropriately form part of the State Plan.
3. State Governments should be fully involved in determining the contents and coverage of the CSS so that local variations are taken care of.
5. State Borrowings
1. The Union Government should give its consent freely to States for borrowing for periods less than one year.
2. The system of tax-free municipal bonds should be introduced in the country.
Issues in Centre - State Financial Relations in Past 2 Decades
1. Changes due to economic reforms
1. States have a greater role now in economic development. They can now differentiate themselves by creating necessary enabling conditions.
2. Increasing inequalities and imbalances across States.
The strategy consisting of area specific programmes and the area specific tax exemptions have so far failed. So there should be higher
central transfers to backward States.
Poor governance in such backward states acts as deterrents to private investments. So there should be greater focus on the issues of
governance in such states and additional grants should be made conditional on administrative reforms.
3. Large scale migration from poorer States to richer States and a faster pace of urban growth stretching the already inadequate civic amenities in
urban areas.
2. Changes due to 73rd and 74th Constitutional Amendments
1. States now have to allocate resources to PRIs.
3. Changes due to Tax Reforms
1. 80th Amendment. Growing importance of Service tax after 80th Amendment which has been placed under Art 268.
2. Need to revise the ceiling of Rs. 2500 on profession tax and assign it to local bodies.
3. Growing importance of cesses and surcharges. The share of cesses and surcharges witnessed a sharp increase from 4.9% of the gross tax
revenue of the Centre in FC-8 to 11.34% in the award period of FC-12. In the years 2008-09 and 2009-10, the share of cesses and surcharges
increased further to over 13 per cent of the gross tax revenue.
4. The proposal to include aviation turbine fuel in the list of declared goods.
5. GST.
4. Changes due to FRBMA
1. 12th FC recommended a Debt Consolidation and Relief Facility with debt write-offs linked to the enactment of state FRBMAs, elimination of
revenue deficit and containment of fiscal deficit. West Bengal and Sikkim are yet to enact the legislation.
2. One of the methods of circumventing the FRBM targets is through off-budget liabilities. The Government of India has been issuing bonds to oil
marketing and fertilizer companies which are off-budget and do not add to the fiscal deficit. But these are nevertheless liabilities of the Central
Government. It is therefore necessary to bring all the off-budget liabilities of both the Central and State Governments into fiscal accounting.
3. Some of the State fiscal responsibility legislations provide for an independent evaluation of adherence to the legislation. In
most cases this has not been operationalised. The Central Legislation does not provide for an independent evaluation.
5. Changes in central lending to states
1. Prior to 2005-06, the Centre was dispensing normal plan assistance in the grant-loan ratio of 30:70 in the case of General Category States and in
the ratio of 90:10 in the case of Special Category States.
2. 12th FC recommended termination of direct central lending to States on account Central Plan assistance. States are now allocated additional
market borrowings in lieu of loan component of normal Central assistance.
3. This has cast a burden on the States in terms shorter duration and higher costs of the market borrowings. The Central loans had a repayment
period spread over 25 years with a moratorium of five years in repayment. In contrast, the market loans have a repayment period of 10 years with a
bullet repayment at the end of the tenth year.
6. Changes in loans against small savings
1. Till 1998-99, small saving collections were being credited to the CFI and the Centre was extending loans to a State against small saving
collections in that State.
2. In April 1999, the National Small Savings Fund (NSSF) was created with Central guarantee.
3. The collections under NSSF are invested in state government securities (100% till 2007 and 80% since then).
4. States borrowings against net small saving collections are no more treated as loans from the Centre following the setting up of NSSF.
5. So FC has been excluding small saving loans from the purview of DCRF. Besides, loans from the NSSF carry a high interest rate of 9.5% per
annum.
7. Changing Pattern of Plan Assistance to States
1. First change is the reduced central budgetary support to the State Plan. Centre's GBS to the Central Plan and the State Plans used to be 1:2
earlier. Now it has become more than 2:1.
2. Second is the significant change in the pattern of plan assistance. The share of normal plan assistance in the total budgetary support to the State
Plan has come down drastically and that of CSS and special plan assistance has gone up considerably.
8. Vertical Imbalance
1. The share of Central transfers in the aggregate revenue receipts of States has remained stable at around 40% of their own revenue receipts. For the
high-income States, it varies from 16 - 25% of their revenue receipts. In respect of the middle-income States, it varies from 25 - 33%. The
dependence of low income States is much higher and that of SCS is almost 90%.
2. The states are anyways not compensated for the compliance and enforcement costs of many central legislations like EPA, FCA.
9. Changes due to Inclusive Growth
1. As most areas contributing to inclusive growth like agriculture, education, skill development, provision of health services, welfare of
weaker sections, etc., are in the realm of States, there is a clear need to realign the resources in favor of States.
10. Mining and environment protection
1. Extraction of minerals involves huge costs in terms of environmental protection and rehabilitation of people. At present these costs are borne mainly
by the States and only partly by the leaseholders. As the extraction of mineral wealth serves national interests, states should be compensated by
the Union. Centre also derives substantial revenue from export duties on minerals.
82/97
7/7/2014
Evernote Export
2. The power to fix royalty on major minerals is vested with the Central Government. Under the provisions of the MMRDA, royalty can't be revised
more than once in 3 years. One of the main grievances of the States is that there are undue delays even beyond 3 years. Another issue is the
conversion of specific rates of royalties into ad valorem rates based on mineral prices.
3. Currently proceeds from off shore oil and gas production and sale of spectrum don't form a part of the sharable pool.
11. Non-Plan and Plan Conundrum
1. Finance Commissions have been criticised often for restricting their assessment to the non-plan accounts only. In the Constitution, there is no
distinction between the plan and non-plan accounts.
2. There are a number of linkages between the plan and non-plan expenditure.
1. Firstly, the expenditure on completed plan schemes becomes committed expenditure on the non-plan account.
2. Secondly, borrowings for financing the plan give rise to debt servicing burden which adds to the non-plan expenditure.
3. Thirdly, personnel employed for the implementation of plan schemes are transferred to non-plan.
CSS (Art 282) Issues and Recommendations
1. Both the central government and the state governments share the responsibility towards fulfillment of DPSP. But the capacities of central government are
vastly more than those of state governments. So the Central Government cannot disown its responsibility to provide funds for healthcare (a DPSP) on the
pretext that healthcare falls within the domain of the States. The enactment of legislation and the implementation of the same might primarily fall within
the domain of the States, but the constitutional responsibility of all levels of government remains joint and several.
2. With the introduction of new CSS, central transfers to states under CSS have gone up considerably while those under normal central assistance have
fallen. Growing discretionary transfers from the Centre have severely constrained the States in drawing and implementing schemes according to their
priorities.
3. The resources for CSS are acquired through taxes which should be a part of the common pool and not left to the sole discretion and use by the Centre.
4. The compliance and implementation cost of these CSS are also borne by the States. The RTE model should be followed there i.e. the additional cost
imposed on states due to such schemes and central legislations should be made a part of the FC ToRs.
5. The centre also increases the states' share arbitrarily without consulting them as in the case of SSA.
6. Over the years, a number of district level agencies have been created for the implementation of CSS. The Central Ministries are directly transferring
substantial amounts of money to these implementing agencies bypassing the State Governments.
1. This system put in place to address the problem of delays in releasing funds.
2. But it has eroded accountability. Implementing agencies are part of the State Government but are not accountable to it.
3. Large sums are reportedly lying unspent in the bank accounts maintained by the implementing agencies.
4. There is no proper accounting of these funds.
5. It should be ensured that the State Governments pay interest in case of delays in the transfer of funds beyond 15 days of their receipt from the
Central Ministries.
7. One size fit all approach.
8. Growth of parastatals.
9. The conditionalities frequently encroach upon the legislative autonomy of the States. A case in point is the JNNURM, which requires the State to reduce
Stamp Duty rates to at most 5%, a rate which can only be prescribed by the Legislative Assembly.
Bypassing States in Transfer of Funds to Local Bodies
1. Many of the areas in respect of which funds are allocated are actually the domain of States.
2. Additionally, it may so happen that the Central Government allocates funds for a certain period of time, but it afterwards unable or unwilling to continue
disbursing funds. In such a situation, unless State Governments and the Central Government are in close coordination, certain welfare programmes could
languish altogether, with grave consequences for general public interest.
3. Such funds are invariably carved out of the sharable pool which was going to states.
Finance Commission Issues and Recommendations
1. Attempts must be made to synchronize the periods of FC and FYP, CFC and SFCs.
2. Strengthening FC
1. One of the criticisms against the working of the FC is that the transfers recommended by them are based on past indicators and not on forward
indicators. Undoubtedly, forward indicators are preferable.
2. Permanent FC division should be setup. It will ensure proper monitoring of the recommendations of the Commissions and even pave the way for the
adoption of forward looking indicators.
3. Strengthening ToRs
1. Liability of states arising out on account of DA and Pay commission recommendations should be a part of its ToR.
2. Additional liabilities of states arising out of compliance and enforcement of central laws, their share in CSS, compensation for mining and
environment protection should be a part of FC ToRs.
4. Reports of FC
1. Information gathered by the FC as well as the detailed methodology followed should be published within six months of the publication of the Report.
2. It will be a healthy practice if the observations and suggestions made by the FC on matters other than the ToR are also considered by the
Government and a statement placed in Parliament.
5. Tax devolution vs Grants
1. States have been seeking predominance of tax devolution because of its inherent buoyancy as compared with the grants which are fixed in nature.
2. Another issue is the conditionalities attached to grants.
3. Compared with tax devolution, grants have a greater redistributive role.
4. The proportion of grants in total Finance Commission increased from 9% in the award period of FC-X to 19% in the period of FC-12. This is a
welcome development.
5. Recent FCs have recommended grants to address special problems and to bridge the gap in the provision of services like education and health.
This is a welcome development.
6. Performance - linked incentive grants are should be more effective in addressing the problems of backward States and hence adopted by FC.
Planning Commission Issues and Recommendations
1. PC micromanagement
1. PC insists on Central Ministries seeking its approval for any changes in the approved projects. This needs to be dispensed with so long as sectoral
allocations are adhered to. That will achieve the desired macro coordination goals of PC instead of micro managing.
2. Planning commission has encroached upon the autonomy of the states as it can accept, modify or reject the states
proposals for development programmes, for which central assistance is sought and which can be granted only on the
83/97
7/7/2014
Evernote Export
acceptance of PC. Such detailed exercise of approving States annual plans may not be necessary. The States should be given freedom to plan
according to their own needs and priorities within the framework of nationally accepted priorities.
3. Over the years, the share of Gadgil formula normal plan assistance has fallen to just 19% of the total PC assistance while those through CSS and
special plans have increased. An issue with the adgil formula is that it gives higher weightage to population and hence is not as progressive as FC
transfers.
2. Issues in states' annual plans
1. Annual Plans are decided several months after the presentation of the State Budget. This reduces the efficacy and sincerity in the planning effort.
2. The mismatch between the Annual Plans and the Five-Year Plans remains a problem. A case for multi-year budgeting with a firm budget for the first
year and provisional for the second and third years assumes importance in this context.
3. There is a tendency on the part of States to seek higher plan outlays and the PC approving them based on unrealisable estimates of own
resources. When the estimated resources do not materialise, non-plan expenditure takes the cut. Thus, the very purpose of a higher plan outlay is
not served.
4. The share of State Plan outlays in total Plan outlays has witnessed a steep decline from 60% in 1st FYP to 40% now. This was mainly due to the
reduced budgetary support to the State Plan.
Unified and Integrated Market

Part 13 of (Art 301 - 307) - Inter-state (+ Intra-state) Trade and Commerce
1. Art 301: Subject to other provisions in this part, trade throughout the territory of India shall be free.
2. Art 302: Non discriminatory restrictions may be imposed by the parliament in public interest. ESMA, 1955 was enacted according to this exception.
3. Art 303: (a) Art 303(1): Neither the parliament nor any state legislature may make any law giving preference to any state over any other in trade and
commerce within India (e.g. states can't resort to domestic treatment). (b) Art 303(2): But in times of scarcity in any part of India, parliament may make
discriminatory provisions.
4. Art 304: (a) Art 304(a): Non-discriminatory taxes may be imposed by states on goods imported from other states. This means a state can only impose
those taxes on goods coming from other states as it imposes on goods produced within the state. (b) Art 304(b): However in "public interest", a state may
impose reasonable restrictions.
Current Situation
1. Essential Commodities Act (ECA), 1955 imposes a number of restrictions on storage, movement and pricing of goods.
2. APMC Acts enacted by States empower State governments to notify commodities and designate markets and market areas where the regulated trade
should take place. They do not allow direct buying of agricultural produce by processing industries or exporters thus preventing the farmers from realizing
better prices for their produce which was the main purpose of such legislation.
3. Major tax impediments
1. CST: The CST is levied on inter state movement of goods. It is an origin based tax and this allows states of origin to shift the tax burden to the
residents of other States. CST also denies input credit on inter-State sales creating distortions.
2. The system of VAT is segmented between CENVAT, State VAT, Central Service Tax and a number of levies by the States and local bodies and the
Central sales tax.
3. Octroi/entry tax. While inter-State sales tax is on the export of goods, Octroi is similar to import duty. These lead to inordinate delays and
harassment at the numerous check posts.
Recent Reforms
1. ECA
1. The number of commodities coming under the purview of ECA has been substantially brought down.
2. But most of the agricultural commodities still continue to remain under the purview of the Act.
3. ECA should be amended to provide for restrictions only during exceptional situations.
2. APMC
1. The Central Government brought out a model APMC Act in 2003 allowing private agents to set up a market or buy products directly from the
market.
84/97
7/7/2014
Evernote Export
2. But the adoption of the Act by the States is voluntary.

3. Only a few states, and none of the major states, have amended their APMC Acts allowing direct marketing, contract farming and markets in private
and cooperative sectors.
4. Even among these, many are yet to notify the relevant rules to make the amendments fully operational.
3. Inter-State Trade and Commerce Commission under Article 307
1. This Commission should be vested with both advisory and executive roles with decision making powers. As a Constitutional body, the decisions of
the Commission should be final and binding on all States as well as the Union of India. Any party aggrieved with the decision of the Commission
may prefer an appeal to the Supreme Court.
Inter-State Water Conflicts

Constitutional and Legal Framework
1. 7th Schedule, state list has water in it. But the Union List has regulation and development of inter-state rivers valleys in it. But this has to be regulated by
a law made by the parliament.
2. The Constitution contains a specific Article - Article 262 which deals with adjudication of disputes relating to inter-state river valleys. It reads:
1. Article 262(1): Parliament may make a law to provide for the adjudication on any dispute regarding any inter-state river valley.
2. Art 262(2): Parliament in its law may provide that no court, including the SC, will have jurisdiction in respect of any such dispute.
3. The River Boards Act, 1956: It was enacted under the entry 56 of List 1 with the objective of enabling the Union Government to create, in consultation with
the State Governments, boards to advise on the integrated development of inter-State basins. These Boards were supposed to prevent conflicts by
preparing developmental schemes in consultation with states.
1. No water board, however, has so far been notified under the Act.
4. The Inter-State Water Disputes Act, 1956: It was enacted under the Art 262 and provides for an aggrieved State to ask the Union Government to refer a
dispute to a tribunal. A water disputes tribunal is appointed by the Chief Justice of India and consists of a sitting judge of the Supreme Court and two
other judges chosen from the Supreme Court or High Courts. The tribunal, so appointed, can choose assessors and experts to advise it and the Award is
beyond the jurisdiction of courts.
Sark aria Commission Observations and Recommendations
1. Constituting the tribunals
1. Centre used to take inordinate amount of time to constitute and notify the tribunal even if a complaint was received from a state. So it
recommended that once an application under the Inter-State River Water Disputes Act is received from a State, it should be mandatory on the
Union Government to constitute a tribunal within a period of 1 year.
2. Centre should also be empowered to appoint a tribunal, suo-moto, if necessary.
2. Support to the tribunals
1. There should be a database and an information system at the national level.
2. States used to refuse sharing data with the tribunals. They should be compelled by law to share all the data as needed by the tribunals.
3. Adequate staff and machinery should be given to the tribunals.
3. Inordinate delays in working of the tribunals
1. The commission recommended that the tribunal must pronounce its award and such an award should become effective within 5 years from the date
of constitution of the Tribunal.
4. Binding nature of the award
1. The government initially had the flexibility not to accept the award. A tribunals award should have the same force and sanction behind it as an order
or decree of the Supreme Court.
Inter-State Water Disputes (Amendment) Act, 2002
1. Accepting Sarkaria commission's recommendation, the centre would establish a Tribunal within one year on a request by a State Government.
2. The Tribunal would investigate the matters referred to it and give its report within 3 years (Government of India may extend the period by another two
years).
3. The decision of the Tribunal, after their notification by the centre, shall have the same force as an order or decree of the Supreme Court.
Ravi Beas Case
1. The matter was referred to the Tribunal in 1986. A report was given in January 1987. Political differences led to further references being made to the
Tribunal and the matter is still before it.
2. Meanwhile Punjab has through legislative enactment terminated all agreements. The legality of this action is the subject matter of a Presidential reference
to the Supreme Court in 2005. The matter is still awaiting the Courts opinion.
Cauvery Dispute
1. In 1970 TN applied to the Central Government for constituting a Tribunal. No action was taken and only on the directions of the Supreme Court the Centre
set up a Tribunal in June 1990.
2. Disputes were raised on whether the Tribunal was endowed with powers to give interim awards.
3. Orders of the Tribunal were nullified by Ordinances promulgated by Karnataka. Advisory opinion was sought by the Centre on the legality of the Karnataka
Ordinance.
4. Riots broke out on the publication of the interim award and PILs on compensation issues were filed in the Supreme Court.
5. The final order of the Tribunal was given in 2007 but these have been referred back to the Tribunal through clarificatory petitions and challenged in the
Supreme Court through Special Leave Petitions under Article 136.
Lessons from Tribunal Experience
1. Enforcement issues
1. Increasingly, States are becoming resistant in complying in spite of express provisions in the Constitution regarding the finality of
such awards. States have passed laws in their legislatures canceling water sharing agreements or nullifying tribunal orders. SC is still to rule on the
85/97
7/7/2014
Evernote Export
legality of such legislations.

2. Enforcing the award and ensuring compliance depends on centre's political will which is found to be lacking in most cases. Coalition politics, where
regional parties have a major say in the Central Government makes such interventions by the Centre difficult.
3. Control over water is considered a right which has to be jealously guarded. Compromise is considered a weakness which can prove politically fatal.
Although a scientific and dispassionate approach may lead to solutions which could be mutually beneficial, they are not attempted as it would
mean giving up established rights.
2. Challenge in SC
1. Although awards can't be challenged in the SC as per the Constitution, they are still taken to the court in the name of interpretation and
implementation.
2. Special leave petitions under Art 136 are filed by the parties before the court. Thus the 2002 amendment which explicitly states that the decision of
a Tribunal shall have the same force as an order or decree of the Supreme Court has been found to be ineffective.
3. Interim awards are taken to the court.
4. Several points involving an interpretation of the Constitution are raised in the Supreme Court.
5. Activists have raised the issues of environmental damage, rehabilitation and alternate livelihood in front of the court. These are matters which are
outside the purview of Water Tribunals.
3. Weaknesses in law
1. There is no time limit for the centre to notify the tribunal's award. Thus centre can practically veto it for an indefinite period.
2. The decisions of the tribunal are questioned for errors and omissions.
3. Parties seek explanation/guidance of the Tribunal on points referred, and even on points not originally referred.
4. The 2002 Act provides for conclusion of proceedings in 3 years extendable for a further period not exceeding 2 years. However, there is a provision
to extend indefinitely time for a clarificatory or supplementary order. This needs to be rectified and time limit for clarificatory / supplementary orders
needs to be prescribed.
5. River boards should be setup. This would encourage resolution of disputes within the Board and in the event the matter does go before a Tribunal
then the Tribunal would have before it the records and deliberations before the Board.
4. Weaknesses in procedure
1. Tribunals should focus mainly on technical issues. Technical and legal issues should be dealt with separately. Issues need to
be spelt out on practical considerations and optimal solutions found.
2. They should deviate from the strict procedures and format of judicial hearings. More participatory and conciliatory approach as adopted in board
rooms rather than in court rooms should be followed. The success of the Krishna Water Disputes Tribunal (1969-1978) has been ascribed to
adoption of participatory rather than adversarial procedures.
3. Tribunals should include people from multiple disciplines from all relevant fields and presided over by a judge. This would also bring about the
attitudinal change.
Inter State Water Disputes (Amendment) Bill, 2011
1.
2.
3.
4.
A National Water Tribunal to be setup merging all individual tribunals.

Each case to be decided by a bench of 2 judges.
Each dispute to be decided in maximum of 2 years extendable maximum for 1 year under extreme circumstances.
Its orders to have same force as SC orders.
Should Water be Shifted Under Concurrent List or Inter-State Rivers be Nationalised?

1. No need, since constitutional provisions already don't preclude central management.
2. Doing so will lead to similar demands in other subjects like say land.
River Basin Management Bill, 2013
1.
2.
3.
4.
5.
6.
It seeks to set up a river basin authority each for the management of 12 major river basins in the country.
It seeks to amend the defunct Rivers Board Act of 1956, provides for integrated planning, and development and management of water resources.
It proposes a two-tier structure for a River Basin Authority comprising a political Governing Council and an official-level Executive Board.
The Council will not only make River Master Plans but will also enable basin states to come to an agreement for implementation of the Plans.
If a dispute cannot not be settled, then it will be referred to a tribunal under the Inter State Water Disputes Act, 1956 for adjudication.
It also mandates protection of "ecological integrity necessary to sustain ecosystems dependent on water", that may include restrictions on water usage to
maintain minimum natural flow in rivers to meet the ecological needs and regulated groundwater use.
National Water Framework Bill, 2013

1. It provides for a minimum quantity of 25 litres per capita per day potable water, preservations of water quality in all rivers and a mechanism for principles for
fixation of water prices.
2. It mandates that governments should specify the "quality standards" of water supply for various uses like drinking, livestock, irrigation and industries
among others.
3. While noting that the government remains the trustee of water resources, it gives it the flexibility of roping in a "private agency" for "some of the functions
of the state". In this context, it stipulates that "allocation and pricing" should be based "on economic principles to ensure its development costs.
4. For this purpose, an independent statutory water regulatory authority shall be established by every state for ensuring equitable access and its fair
pricing. It would work on a "principle of differential pricing for water".
Environment and Centre - State Relations

Constitutional Framework
1. The original Constitution had no direct reference to the environment.
2. Art 47, however, commands the State to improve the standard of living and public health and this necessarily includes environment.
86/97
7/7/2014
Evernote Export
3. 42nd Amendment Act

1. DPSP Article 48 A The State shall endeavor to protect and improve the environment and to safeguard the forest and wildlife of the country.
2. Fundamental Duty: Article 51-A (g) It shall be the duty of every citizen of India to protect and improve the natural environment.
3. Forests was moved out of state list to the concurrent list. Subjects such as protection of wildlife, population control and family planning were
introduced in the concurrent list.
4. 73rd and 74th Amendment Acts
1. 11th and 12th schedules provide for environmental protection and conservation, soil conservation, water management, social and form forestry,
drinking water, fuel and fodder by the PRIs.
5. Article 21 has been repeatedly interpreted by the Court as right for clean environment'.
6. Individual subjects having direct impact on environment are scattered along all the 3 lists:
1. Union list: Industries, oil, mines, inter state river valleys, fishing beyond territorial waters.
2. State list: Public health and sanitation, agriculture, water, land, fishing, Industries (subject to above), mining (subject to above).
3. Concurrent list: Forests, wildlife, planing, population control.
Development and Environment Role of Centre, States and Local Bodies
1. Distribution of powers
1. Issues relating to conservation; research; earmarking areas as biospheres; and protection of endangered species are best looked after by the
Central Government. This is because:
Livelihood issues and commercial pressures are more keenly felt in the States and they would be prone to letting conservation issues
remain in the background.
Parliament can debate somewhat dispassionately keeping an All-India perspective and Indias international responsibilities in mind.
2. Livelihood and social justice concerns are best addressed by the involvement of PRIs. So far there has been this gap and the activist organizations
have stepped in.
2. Stronger constitutional statement
1. Constitutions of Ecuador and Columbia give fundamental rights to nature. Many other constitutions also make such strong statements. We too
need to make a strong statement regarding environment in our constitution. This will enable a sharper focus on environmental issues while carrying
out any planning.
2. Scope of Entry 20 (Economic and Social Planning) in the Concurrent List can be extended to include Environment and Ecological Planning at all
governmental levels.
Wildlife (Protection) Act, 1972
1. It used the term habitat which includes land, water or vegetation which is the natural home of any wild animal. This is why land under the Act also
includes water bodies.
2. It also gave powers to the authorities to declare any area considered necessary as a Protected Area (PA).
3. It limits the right to live inside PAs. The initial Act did not provide for any settlement of the rights of PA inhabitants but this was rectified by a 1992
Amendment. A further amendment in 1993 however again put restriction on the exercise of the rights.
Forest (Conservation) Act, 1980
1. States can notify any land as a Reserved or Protected Forest or a Wild Life Sanctuary or a National Park. But the Act mandates they have to obtain the
Centres clearance before diverting any forest land for non-forestry use.
2. The FCA envisages equal amount of nonforest land to be mutated in favor of forest department in lieu of the forest area so diverted.
3. In the process, certain good forest area that was diverted was being denuded and the loss could not be compensated. So the SC in 2002 created the
CAMPA Funds.
4. It is seen as a restrictive legislation. This has led to a conflict between conservation and some of the developmental programmes.
National Forest Policy, 1988
1. It emphasized that the existing forest and forestland should be fully protected.
2. The forestland or land with tree cover should not be treated merely as a resource readily available and therefore to be utilized for various projects but to
be viewed as a national asset.
3. Diversion of forestland for any non-forest purpose should be subject to the most careful examinations by specialists from the standpoint of social and
environmental costs and benefits.
Biological Diversity Act 2002
1. CBD has three goals which are conservation of the biodiversity; the sustainable use of its components and fair and equitable sharing.
2. Prior approval of the National Biodiversity Authority is mandatory for accessing the biological resources.
3. Provision of the Act shall be in addition to, and not in derogation of any law for the time being in force, relating to forests or wildlife.
Livelihood Issues and Legislative Framework
1. India wanted to increase 'forest area'. So vast amounts of land were declared as forest without following a due process of law or even ecological rationale.
Thus even lands earlier used for common purposes (fuel and fodder) were also declared as forests. Diverse categories of non-private land of ex-princely
States were declared without proper survey as forests.
2. SC mandated that the FCA be extended to the dictionary definition of forest irrespective of ownership. Other orders of SC prohibiting removal of dead,
diseased, dying or wind fallen trees, drift wood and grasses from the National Parks/Wild Life Sanctuaries has further tightened the Act.
3. The position in the Schedule V and VI Areas is the worst, since they hold most of the forests. The rights of the tribals were never recorded. All this has
deprived the people. The issues with PESA and FRA are well known.
4. Legislations had ignored Indias tradition of community conservation. Local users and their institutions, who had the maximum stake in sustainable
management of common lands were divested of the authority to manage them. JFMC was a step in right direction, but here too undue influence of the
forest department limits its efficacy. Forest dwellers continue to be classed as encroachers.
Compensation for Eco-System Preservation
1. It should cater to:
1. Price to be paid for maintenance of the eco-system.
2. For foregoing the opportunities of infrastructure and economic development.
3. For loss of revenues arising out of non-exploitation of forest resources.
87/97
7/7/2014
Evernote Export
4. For investment in alternate, sustainable development models.

5. For appropriate rehabilitation packages for the displaced.
2. Suggestions have been made to include per capita dense forest area in the modified Gadgil formula.
3. Uttarakhand Formula: Uttarakhand gave a valuation of the Eco-System Services (ESS) and compensated accordingly.
4. REDD: The quantity of carbon which is prevented from entering the earths atmosphere because they have been sequestered by the conserved forests is
estimated. These savings are converted into carbon credits and then sold to developed countries. The revenue is then invested back into protecting the
forest and improving life of communities.It can also be used internally to compensate States through Centre-State financial transfers.
Mineral Issues and Centre - State Relations
Case for Mining Compensation
1. Mining causes great environmental and livelihood damage.
2. Mining activities involve large machineries, not many jobs were created. Whatever little job opportunities are provided, they are extremely hazardous and
low paying.
3. Urbanization cannot take place near mines.
4. Mining leads to displacement of people which has its costs.
5. Centre gains export tax. Minerals are national wealth.
The Constitutional Provisions
1. The constitution confers powers on the States to regulate mines and mineral development subject to the provisions of the Union list.
2. The Union list provides for regulation of mines and mineral development by the centre as per a law made by the parliament. The Parliament made the
MMRDA, 1957 which:
1. Introduces the concept of the major minerals and the minor minerals.
2. Confers rule making power on the Central Government for the grant of reconnaissance permits, prospecting licences and mining leases. It makes it
mandatory for the State Government to obtain the approval of the Central Government before any reconnaissance permit, prospecting licence or
mining lease is given in major minerals.
3. The centre can also specify and revise from time to time the royalty rates from the major minerals.
4. The State Government has the power to make rules for regulating the grant of quarry leases, mining leases or other mineral concessions in respect
of minor minerals.
3. Thus the entire field of minerals development has been occupied by the Central Government.
4. Royalty rate issue
1. Even after Sarkaria recommendations, the minimum period for revising royalties has been brought down to three years and not two. This too is not
followed and their are longer delays.
2. States feel that this is a denial of their legitimate share of revenue.
3. The responsibility of fixing royalties should be delegated to States after laying down the floor and ceiling limits and issuing guidelines.
4. States would also prefer an ad valorem basis for royalty calculations.
5. Central Government does not share with the States the export duty it receives from mineral exports. Similarly an excise duty is levied on extracted
coal is not shared with the States.
Constitution
Created: 5/30/2013 1:11 PM
Historical Underpinnings
Evolution
Features
Amendments
Significant Provisions
Basic Structure
Comparison With Other Countries
Presidential System vs Parliamentary System
1. We opted for parliamentary system because of a very important reason.
1. The leaders of the INM were in a hurry to ensure quick social transformation and rapid economic development of the whole country and society which
had suffered for long at the hand of the British.
2. And they thought that the cabinet system of government which is responsible to the elected legislature and holds a majority there. So when we want
quick legislations passed like say land reforms, the executive can get the bills quickly passed as they possess a majority in the legislature.
3. America didn't want a strong executive, they wanted checks and balance. They had seen the tyranny of a parliamentary form of government and so
wanted to secure individual liberty. So they wanted a weak government.
2. The demand for the change is based on the wrong reason. The problem is some of the parliamentary practices, not the parliamentary system itself. It is not
the parliamentary system which is weak, our parliamentary system has become weak.
1. Rules are not followed. We have borrowed certain rules only in letter, not in spirit. Inconvenient conventions and rules have simply not been borrowed.
2. Titular head: This is a necessary requirement of the parliamentary system. Look at governors in India.
Due Process of Law (Art 21)
1. Due process includes equality, justice, good conscience.
2. We nearly adopted it but then ditched it. In US, in their enthusiasm for preserving individual liberty from majority tyranny, this has virtually given judiciary
supremacy. The judiciary has over the time interpreted it to accord themselves primacy in determining the fate of any and every law. So judiciary has
become very powerful there. "The US constitution is what the supreme court says what it is." Thus it has surrendered the system to a minority tyranny of
judges.
88/97
7/7/2014
Evernote Export
Q. Distortion to British Parliamentary practices has led to the poor state of Indian politics today?
Q. Is a multi party system incompatible with the parliamentary form of government?
1. India follows first past the post system. So a person getting even a minority votes can win and then he will represent the entire constituency. This problem
is definitely aggravated in a multi party system - the more the number of parties, the less the number of votes the winner is likely to need to win. Thus even
the most crucial decisions in India have been taken by a minority. No government in India has been elected by a majority of popular vote. But this can be
overcome by a 2 stage voting.
Q. Utility of Rajya Sabha in comparison to Britain
1. Britain has higher number of nominated members from specialized fields.
Parliament and State Legislatures
Structure
Functioning
Conduct of Business
Powers and Privileges
Constitutional Bodies
CAG
Independence
1. Though he is appointed by president, he can be removed only by parliament (like judges) on grounds of - (a) proven misbehavior, and (b) incapacity.
2. His salary is charged on CFI and is statutory (can't be voted by parliament adversely during his tenure).
3. He can't hold any public office post his retirement (but can join a political party). He submits resignation to president.
Duties
1. Apart from auditing government accounts of states and center, he also audits accounts for any institution substantially funded by public funds. Thus it
includes PSUs.
2. His job is to check if all expenditures are as per laid down by the law. This means its his duty to check for corruption in expenditure of public funds.
Similarly all taxes have been collected as per law.
CAG's Jurisdiction
1. Art 149 of states that CAG "shall perform such duties and exercise such powers in relation to the accounts ... as may be prescribed under law."
2. Parliament made a law CAG (Duties, Powers & Control) Act wherein it stated that CAG's duty is to 'audit' all expenditure from the CFI and states.
3. But the word 'audit' has not been defined anywhere. When audit is viewed as a partner in good governance, allegations of trespass into the executive
territory lose their relevance. Another way is to look at international experience and conventions.
4. CAG has a responsibility to evaluate whether the collection and allocation of revenue was optimized or if the 'rules and procedures' fail to secure an
effective check on the collection and allocation of the revenue. To this extent it can subject the policy to scrutiny but can't make recommendations on its
efficacy or implementation. So it can merely highlight the collection and allocation inefficiencies in its report to the parliament (which is exactly what CAG
has done i.e. the delays in implementing a competitive bidding has led to a potential loss).
5. CAG can't question policy matters. But if in the making of the policy its financial implications were not considered at all or faulty assumptions were used,
there is no record of a considered policy decision, or if the policy benefits some groups or individuals to the exclusion of public, or the implementation of
the policy defeats the policy itself then CAG has a mandate to report it under the performance audit.
Shortcoming in CAG Appointment Process
1. The present selection process for the CAG is entirely internal to the Government machinery; no one outside has any knowledge of what criteria are
applied, how names are shortlisted and how a final selection is made.
2. In most of the other countries there is no scope for the head of the Supreme Audit Institution to be chosen at the discretion of the Government.
3. Another related issue is that of the appointment of IAS officers as the CAG. This has had a demoralising effect on the IAAS cadre.
4. ICAI Code of Ethics states that an auditors independence has two aspects- independence in fact and independence in appearance. The appointment of
former secretaries as CAG may compromise the independence of this institution because of apparent/perceived conflict of interest.
Issues With CAG
1. Issues with the audit process
1. CAGs reports are not timely because there is substantial time gap between occurrence of an irregularity and its audit. It reviews programmes after
these have run for a few years.
2. Audit findings are based exclusively on documents and files. The situation on the ground is quite different from what is reflected in the papers.
There is practically no verification to validate the audit findings.
3. CAG reports tend to be unduly negative and their focus is on irregularities and faultfinding. They do not recognize the practical constraints under
which the departments function.
4. They do not give due credit for good performance.
5. They do not discriminate between errors arising out of bonafide/malafide intentions. Audit as such could act as a dampener against new initiatives
and risk taking.
6. They do not delve into the root causes of the problems and how to address them.
7. Reporting each year a large number of problems which are already known does not add value. Audit must therefore identify systemic problems.
8. The relationship between the auditor and auditee is not always harmonious. Generally interaction is confined mainly to the lower levels. Audit is
viewed as a policing. There is poor response to external audit which seriously reduces the effectiveness of audit.
9. There is inadequate coordination between external audit and internal audit.
2. Issues with post audit process
1. There is hardly any accountability for not taking timely action on audit observations. Thousands of reports containing a huge number of observations
89/97
7/7/2014
Evernote Export
2.
3.
4.
5.
6.
are lying unattended in the departments. Audit Committees comprising representatives of audit and government agencies have been set up to
review the departmental action taken on inspection reports but their functioning is not satisfactory.
Detailed examination of paras included in the Audit Reports by PAC is barely about 15-20 against the total number of 1000 - 1500 paras in the
CAG reports.
The Ministries take only those audit paras seriously which come up for discussions in the PAC.
PAC and CoPU must form sub-committees and consider more paras this way. Other paras should be assigned to the respective Departmental
Standing Committees.
Ministries are supposed to submit Action Taken Notes on the paras not discussed. But such Action taken Notes are largely formal rather than
substantive.
In the State Legislatures, there is a huge pendency of Audit Paras to be examined by State PACs. Some of the pending paras are 10 to 20 years
old.
National Backward Classes Commission

1. It has been given the mandate of examining requests for inclusion of any class of citizens as a backward class and hear complaints of over-inclusion or
under-inclusion in such lists and tender advice to the Government.
National Commission for Scheduled Castes
Mandate
1. To monitor the safeguards provided for the SCs and to evaluate the working of such safeguards.
2. To inquire into specific complaints.
3. To advise on the planning process for SC development and to evaluate the progress of their development.
Powers
1. While investigating into matters, it has the powers of a civil court trying a suit. Such powers include:
1. Summoning and enforcing the attendance and examine him under oath.
2. Requiring the discovery and production of any documents.
3. Receiving evidence on affidavits.
2. The Commission has offices in 12 States/UTs, which enables it to have a wide perspective.
3. The Commission is organized around four wings which look after administration, safeguards, atrocities and rights violations, and economic and social
development respectively.
National Commission for Scheduled Tribes
1. The NCST functions through units which look after administration, coordination, socio-economic development, safeguards and atrocities. It has six regional
offices which provide it with a regional perspective.
Election Commission
Powers
1. Its powers are plenary i.e. uncontrolled by the executive. But EC's powers apply only where and laws are silent. EC can't override any law already made.
2. Its actions are subject to judicial review.
Composition
1. The number of ECs may be varied by president from time to time as per the law made by parliament. Currently the limit is CEC + 4 ECs.
2. CEC and ECs are appointed by the president and while appointing them the president just consults the CoM.
3. CEC and ECs are appointed for 6 years or 65 years of age. ECs if promoted to CEC can hold office only till there combined tenure as EC + CEC is 6
years. EC can't be reappointed as EC and CEC can't be reappointed as CEC.
4. ECs can be removed by president only on the recommendation of CEC and the president is not bound by such a recommendation. CEC cannot be removed
except in a manner like SC judge.
Reforms suggested by EC
1. While appointing CEC and ECs, the president should consult a high level panel comprising of PM + law minister + leader of opposition in HoP. Such
recommendation shall be binding.
2. ECs should be removed only in a manner like SC judge. Upon retirement the CEC and ECs shouldn't be allowed to hold any office of profit under the state
(currently they are allowed to) neither be allowed to join any political party for 10 years from retirement.
3. While appointing CEC seniority principle should be followed.
Regional Election Commissioner
1. He is appointed by the president on recommendation of EC on the eve of an election to HoP or Legass or Legco to assist the EC in discharging its duties.
So far none have been appointed and his functions have largely been taken care of by chief electoral officer who is a permanent officer.
90/97
7/7/2014
Evernote Export
Representation of People's Act

Salient Features
Issues in Political Reforms
Funding Reforms Attempts

1. Dinesh Goswami Committee in 1990 and later Indrajit Gupta Committee recommended limited support in kind while simultaneously recommending a ban
on company donations.
2. Subsequent developments include parties being forced to file tax returns.
3. SC decision in 1996 clubbed expenditure by third party(s) as well as by the political party under the expenditure ceiling limits prescribed under the
Representation of People Act.
4. Election and Other Related Laws (Amendment) Act
1. Full tax exemption to individuals and corporates on all contributions to political parties.
2. Repeal of Explanation I under Section 77 of the RPA. Expenditure by third parties and political parties now comes under ceiling limits, and only
travel expenditure of leaders of parties is exempt.
3. Disclosure of party finances and contributions over Rs. 20,000.
4. Equitable sharing of time by the recognized political parties on the cable television network and other electronic media.
5. The 2002 amendment to RPA stipulates that every elected candidate shall, within ninety days file the details of his/her assets/liabilities.
Tightening of Anti-Defection law
1. The Election Commission has recommended that the question of disqualification of members on the ground of defection should also be decided by the
President/Governor on the advice of the Election Commission. Such an amendment to the law seems to be necessary in the light of the long delays seen in
some recent cases of obvious defection.
Disqualification
1. In cases of persons facing grave criminal / corruption charges framed by a trial court after a preliminary enquiry, disallowing them to represent the people in
legislatures until they are cleared of charges seems to be a fair and prudent course. As a precaution against motivated cases, it may be provided that
only cases filed six months before an election would lead to such disqualification.
False Declarations
1. The Election Commission has recommended that all false declarations before the Election Commission should be made an electoral offence. Government
is opposing it in court!
Publication of Accounts by Political Parties:
1. Political parties have a responsibility to maintain proper accounts of their income and expenditure and get them audited annually. The Election Commission
has reiterated this proposal. This needs to be acted upon early. The audited accounts should be available for information of the public.
Expediting Disposal of Election Petitions
1. Election petitions in India are at present to be filed in the High Court. Under the Representation of the People Act, such petitions should be disposed of
within a period of 6 months. In actual practice however, such petitions remain pending for years.
2. Special election benches should be constituted in the High Courts earmarked exclusively for the disposal of election petitions.
3. Special Election Tribunals should be constituted. Each Tribunal should comprise a High Court Judge and a senior civil servant. Its mandate should be to
ensure that all election petitions are decided within a period of six months.
Grounds of Disqualification for Membership
1. Article 102 provides for disqualification for membership of either House of Parliament under certain specific circumstances, which are as follows:
1. If he holds any office of profit.
2. If he is of unsound mind declared by a competent court.
3. If he is an undischarged insolvent.
4. If he is not a citizen of India.
5. If he is so disqualified by or under any law made by Parliament. So far, no such law has been enacted.
Social Welfare and Development

Created: 5/30/2013 1:27 PM
Source: http://www.financialexpress.com/news/even-lpg-cash-transfer-faces-aadhaar-problem/1122587?utm_source=feedly
Government Policies and Intervention
Centrally Sponsored Schemes (CSS) Reforms
91/97
7/7/2014
Evernote Export
Issues with CSS

1. Poor performance
1. Most of the schemes exist in silos planned without any horizontal or vertical integration, resulting in multiple sectoral district plans, unrelated to
each other, often mutually conflicting.
2. The schemes are often rigid and do not provide flexibility required for adaptation to local needs.
3. Professional support is quite weak as not much attention is paid to this aspect.
4. Most of the CSS remain expenditure oriented.
5. No mechanism for tracking funds. Funds released from ministry is treated as expenditure even if it may be lying in bank accounts of the
implementing agency.
2. Panchayat issues
1. Most of CSS deal with matters earmarked for Panchayats and yet PRIs are not integrated well into the schemes.
2. Sector specific works planned under CSS are not reflected in the Panchayat plans.
3. Often independent structures are created for each scheme resulting in a multiplicity of delivery structures. No attempt is made to leverage PRIs or
previous structures. Line departments controlling the implementation process with no accountability or monitoring.
Recommendations
1. Performance issues
1. Schemes should not be over structured with rigid guidelines and should leave enough flexibility in decision making at the implementational level.
2. Social audit, focus on measurable outputs and outcomes.
3. Monitoring mechanisms for flow of funds.
2. Panchayat issues
1. Each Ministry of the Government of India should undertake activity mapping with regard to its CSSs and identify the levels where activities need to
be located; at the ministry level, at the State Government level or at the Panchayat level.
2. Sector specific works planned under CSS need to find place in the overall development plan prepared by the Panchayat. Enough scope should be
given to the Panchayats so that they could integrate such schemes within the framework of their areas holistic development plans.
3. At the stage of conceptualisation, care needs to be taken to ensure that the Panchayats feel assured that the scheme has been designed for local
welfare.
4. Panchayats should have an important role in implementation. Parallel bodies should be wound up and merged with standing committees of the
PRIs. Some of them may need to have organic linkage with the PRIs.
National Right to Homestead Bill, 2013

Features
1. SC has also said that the issue of a roof over one's head needs to be seen as a basic human right under Art 21. It is also in consonance with the DPSP to
eliminate inequalities in status.
2. It will give every one poor shelter less family a right to home and 1/100th of an acre or 10 cents of land area to also carry out supplementary livelihood
activities. Families who own land, persons who are paying income tax, government employees, employees from the private sector who earn Rs 84,000 a
year will be ineligible.
3. Plans must be formulated at the state and district level for the time bound (within 5 years) implementation of this right. Centre will bear 75% of the cost.
4. The right to homestead can be inherited but cannot be transferred to a new ownership.
5. The title to the homestead shall be granted in the name of an adult woman member of the eligible family.
6. State governments will identify the land for allotment, allot and provide titles, develop the allotted homesteads, provide basic civic amenities, establish a
grievance redressal mechanism, monitoring system and ensure transparency and accountability by means such as social auditing.
Analysis
1. About 2 crores poor shelterless families will get home and land. The poorest and most vulnerable among the rural families are those who are landless and
shelter less. The Bill will affect them.
2. It will also enable them to take up livelihood activities such as backyard poultry, goat-rearing, horticulture and vegetable cultivation.
3. Where is the government going to get the land from? From all the surplus land that state governments have acquired under various land reform legislations
or donated under the Bhoodan movement? But the track record of such land being redistributed has been very poor. 5 mha has been pledged as part of
the Bhoodan movement but only 50% has actually been distributed. There is a big scam there.
4. Track record of land reforms has also been poor.
5. How to ensure that people who get land will not have it taken away, either forcibly or by fraud?
Agra Agreement with Jansatyagrah, October 2012
1.
2.
3.
4.
5.
Formulation of a National Land Reforms Policy with inputs from the draft prepared by Jansatyagrah and involvement of civil society organisations.
Advise the states to provide amend their laws backing for provision of agricultural land and shelter right to the landless and shelter less poor of rural areas.
Guarantee 10 cents of land.
Advise the states to take up time bound land reforms. To set up a task force on land reforms headed by the MoRD.
Establish fast track courts to dispose cases pending and extend legal aid to all the persons belonging to socially deprived sections in matters of land
litigation.
6. Effective implementation of PESA and Forest Rights Act.
7. Resolution of forest boundary disputes by keeping Gram Sabhas fully involved.
8. Support the States to carry out survey of common property resources with the direct involvement of the Gram Sabha.
National Land Policy, 2013
1. To enable nomadic tribes to shift to agriculture, it allots 5 acres of agricultural land to every family belonging to nomadic and denotified nomadic tribes,
provided they are willing to settle.
2. Religious institutions occupy large tracts of land. Such institutions should not be allowed to use more than "one unit of 15 acres". Exemptions to religious,
educational, research and industrial organisations as well as plantations and aqua farms should be strictly discontinued.
92/97
7/7/2014
Evernote Export
3. It takes care of women rights by distributing land only to the woman member of the family. Even in matters of inheritance equal rights to women will be
ensured.
4. Property owners holding more than a specified number of residential plots or land beyond ceiling should pay extra tax.
5. Only farmers will be allowed to buy land categorized as agricultural land. But it does nothing to prevent arbitrary change of land use.
93/97
7/7/2014
Evernote Export
Issues Arising out of Design and Implementation

Development Processes
Development Industry
Social Capital
1. It refers to those institutions, relationships, and norms that shape social interactions. It binds together the community and make cooperative action
possible. The basic premise is that such interaction enables people to build communities, to commit themselves to each other, and to knit the social
fabric.
2. In many cases it provides a cogent explanation for the failure of economic policies.
Role of NGOs
Role of SHGs
Kudumbashree Mission in Kerala

Features
1. Development of Grass Roots Level Community Based Organisation (CBO)
1. Kudumbashree emphasizes that all developmental programmes relating to nutrition, poverty alleviation, SC/ST development should be run by
community based organisations with support of PRIs.
2. The women are organised into Neighborhood Groups, (NHGs) consisting of 20-40 women with 5 functional volunteers including the secretary and
the president.
3. The group meets once a week in the house of a member.
4. Many NHGs have come through a mentor Body (either government or an NGO) which provided initial information and guidance to them. Such
support often consists of training people.
2. PRI Linkages
1. These groups are coordinated at the Ward level through Area Development Society (ADS), by federating 8-10 NHGs.
2. The coordinating Apex Body at the Panchayat level is the Community Development Society (CDS).
3. Planning Process
1. The aspirations and genuine demands voiced in the NHG meetings form the micro-plans, and are scrutinized and prioritized to form a mini-plan at
the level of ADS.
2. A judicious prioritization process at the level of CDS leads to finalisation of a CDS Plan. It is the anti-poverty sub-plan of the Local-Self
Government.
4. Financial Integration
1. Groups which are mature enough to avail loans are linked with banks under the Bank-linkage programme of the NABARD.
2. Thrift and Credit Societies are set up at NHG level to encourage the poor to save and to avail easy credits. These facilities have gradually grown into
informal Doorstep Banks for NHG members.
3. It promotes the concept of group accountability ensuring that the loans are paid back.
4. It provides mutual support to the participants in saving money, preparing a common plan for additional income generation and opening bank
accounts. This supports them in setting up micro-enterprises.
Current Challenges in SHG Movement

1. Maintaining the participatory character of SHGs
1. Its primary strength is its solidarity-based participatory character, and in its ability to survive without any significant external support or
involvement.
2. Government interventions and subsidies have already started showing negative results. The patronage and subsidies often lead to their
politicization.
3. SHG movement should be recognized as a peoples movement and the role of government should be only to facilitate and create a supportive
environment, rather than manage the movement directly.
2. Expansion in northern states
1. This is possible only by rapid expansion of financial infrastructure (like NABARD) and capacity building measures in these States.
3. Extension to peri-urban and urban areas
1. Migrants in such areas don't have any documentary proofs and hence do not have access to organised financial services.
2. NABARDs mandate is to cater only to rural and semi-urban areas. In Bangladesh, the Grameen Bank does not make any distinction between
urban and rural borrowers. NABARD Act should be amended.
3. In AP, there are many Self Help Promoting Institutions (SHPIs) / mentor organizations. Providing them financial access and creating enabling
environment for them is an essential to spread the movement.
4. Issues in financial linkages
1. Currently, four distinct models of financial intermediation are in operation in various parts of the country namely:
1. SHG-Bank linkage promoted by a mentor institute
2. SHG-Bank direct linkage
3. SHG-Mentor Institution linkage
4. SHG-Federation model
2. Linking SHGs to banks is the most effective model which allows an SHG to obtain funds or a credit limit, without giving any collateral, from a local
bank often in multiples of its own savings. The tranche of credit given to a SHG starts initially at a low ratio to savings and gradually increases to
a much higher level. In India, this form of credit interaction, where the banks deal directly with individual SHGs has been one of the most successful
models.
94/97
7/7/2014
Evernote Export
3. However, the total outflow from this channel has been rather low because it is inherently linked with the magnitude of the SHGs own savings. In
some cases, in order to obtain economic sustainability a cluster of SHGs have gathered together to form a federation. This scales up their activities
and also enables them to have access to increased resources from funding institutions.
5. Issues of sustainability, capacity building and use of technology
1. Many of the activities undertaken by the SHGs are still based on primitive skills related mostly to primary sector. This is
characterized by poor value addition per worker and subsistence wages.

2. Creating SHGs is not an end in itself. They have to be made sustainable. Even after many years of existence, by and large, most SHGs are heavily
dependent on their promoter NGOs or government agencies. The withdrawal of NGOs / government agencies even from areas where SHGs have
been federated, has often led to their collapse.
3. Capacity building of government agencies and banks is equally essential to create sustainable relationship and there is a positive correlation
between the training received by government functionaries/Bank personnel and their overall attitude towards local organisations.
4. There is lack of qualified resource personnel in the rural areas who could help in skill upgradation / acquisition of new skills
5.
by group members.
Currently, many public sector banks and micro-finance institutions are unwilling to provide financial services to the poor as
the cost of servicing remains high. Use of appropriate technology can reduce it.
6. Role of MFIs
1. This has come under cloud. The sector needs to be regulated although care must be taken that legitimate activities are not hampered.
Cooperatives
Current Challenges
1. Bureaucratisation and government control: There is a post of the omnipotent Registrar of Cooperative Societies who has the final say in almost all
cooperative matters. Existence of such a government controlled cooperative infrastructure has gone against the very logic of the cooperative movement.
2. Politicisation of cooperative leadership: The Boards of a majority of cooperative Bodies are dominated by politicians. Politicians joining cooperatives
introduces decay in the system.
3. Failure to inculcate self help principle: Self-help is the basic tenet of cooperatives. In its very genesis the movement is opposed to both Market as well as
State. Governments have generally been eager to provide financial support to cooperatives and the sector has very often fallen prey to this temptation. The
government thus, succeeds in establishing its dominance over them.
4. Failure to inculcate member centrality principle: Cooperatives by their very nature are inward looking organisations. They are meant to serve the member
community. The focus of the activities of a cooperative organisation needs to be on its members. Its business is to be developed around their needs,
policies are to be designed according to their views and administration is to be carried out through member participation. But, in practice, cooperatives in
India have not adhered to the above norms.
The Constitution (One Hundred and Eleventh Amendment) Bill, 2009 / 97th CA Act, 2011
1.
2.
3.
4.
5.
6.
The Bill seeks to develop professionally managed and autonomous cooperatives.

The state legislature may fix the number of board members but <21. At least 1 would be SC/ST and 2 women and term of the board will be 5 years.
A maximum of 2 people with experience in the field can be "co-opted" in the Board.
The elections of the new board will take place before the end of term of the previous.
The Board can be superseded or suspended for its failure but within 6 months elections will have to be conducted.
Independent audit, professional management.
Role of Donors, Charities, Institutions, Other Stakeholders
Issues with Legal Framework for Societies / Charities

1. Excessive state control
1. While the original Act (Societies Registration Act, 1860) was remarkably clear in not introducing any form of state interference, except routine
matters of filing annual statements, many of the legislations (through post-Independence amendments) went for widespread governmental controls.
The legal measures include:
1. Power of enquiry and investigation.
2. Cancellation of registration and consequent dissolution.
3. Modify / annul a decision of the governing body and even its supersession.
4. Appointment of administrator.
2. Multiplicity of laws and jurisdictions
1. The multiplicity of laws even within a state has prevented growth of a proper institutional framework in this sector.
2. Diversity of laws across the States has given rise to emergence of nonuniform practices. If an institution registered in one State desires to expand
its activities to any other area, it needs to comply with a different set of legal requirements.
3. Issue of giving priority attention to larger organisations
1. India has a large number of voluntary sector organisations, a majority of whom are very small in terms of their scale of operations. Currently, the
overseeing authorities spend a disproportionately large amount of time and staff on routine matters relating to smaller charities and the attention
given to larger organisations is inadequate and ineffective. Thus, many important and urgent matters of such institutions remain unattended or take
inordinately long to get settled.
95/97
7/7/2014
Evernote Export
NGO Issues
Promoting Accountability and Transparency - Accreditation
1. A large number receive grants from government. These organisations vary greatly in their capability and credibility. In the absence of any system of
accreditation, the government has found it extremely difficult to distinguish between good organisations and those which have been set up almost solely
for the purpose of receiving government grants.
2. Thus there is need to have a system of accreditation and certification for NGOs, which would facilitate and bring transparency in the Government-NGO
partnership.
3. The procedure adopted for accreditation should not be so complex as to lead to harassment, delay and corruption.
4. Accountability and transparency is essential; therefore, there is a need for accreditation through an independent agency like the National Accreditation
Council.
Exemption from IT Act
1. There are inordinate delays in getting the approval for exemption from Section 80G of IT Act. In fact, there have been many instances where, by the time a
certificate is made available, the case becomes due for seeking renewal.
2. Such an exemption should be granted to a charity in perpetuity; there should be no need for its renewal. The tax authorities in any case have the powers
to cancel the registration if any misuse is detected. A time limit of say 90 days should be fixed for grant / rejection of approval.
FCRA, 2010
Prior Regulations of Foreign Contribution
1.
2.
3.
4.
NGO has to register itself.

It can receive foreign contribution only through a particular branch of one bank only as specified in the application for registration.
The funds can be used only through that intimidated bank branch.
It has to disclose to the government the amount of each foreign contribution received, the source, and the manner in which such foreign contributions is to
be utilized.
5. The Government may require it to obtain its prior permission before accepting any foreign contribution.
6. Government has the power to inspect, seize and audit.
Features and Issues
1. It expands the list of prohibited organisations to those of political nature (not being a political party) and electronic media from receiving foreign
contribution.
1. No guidelines have been given to define 'organizations of political nature not being a political party' leaving ample scope for subjectivity and
harassment.
2. Contributions shall be utilised only for the purpose for which the same have been received. It prohibits the use of foreign contributions in any speculative
business, 'activities detrimental to national interest'.
1. Such terms have not been defined and leave ample scope for subjectivity and harassment.
2. Incidentally IT Act allows the voluntary sector to invest funds in government securities and mutual funds.
3. It caps administrative expenses at 50% of the receipt of foreign contribution.
1. The Union Government has been authorized to prescribe the element which shall be included in the administrative expenses. This
gives considerable discretionary powers to the government.
2. It may be difficult to differentiate between the administrative and project related expenses. For example, health care.
4. It makes provision for intimating grounds for refusal of registration or prior permission under the Bill.
5. It provides arrangement for sharing of information on receipt of foreign remittances by the concerned agencies to strengthen monitoring.
6. It makes registration valid for five years and renewal / cancellation after that.
1. The Government can refuse to grant registration or permission to an organisation on grounds of indulging into conversion.
2. A necessary condition for securing registration is that the applicant organisation should have undertaken meaningful activity in its chosen field or
should have a meaningful project for the benefit of the people for whom the foreign contribution is proposed to be utilized. This again is a matter
of subjective satisfaction and is open to misinterpretation.
3. There are several grounds on which a certificate of registration could be refused. The words like likelihood of diversion of funds for undesirable
purposes admit subjectivity.
4. No time limit has been prescribed in the proposed Bill for grant or refusal of a certificate of registration or its renewal. This limit was 90 days in the
previous Act.
7. It allows the recipient to open more accounts in other Banks for utilizing the foreign contribution.
8. No appellate provisions are there over governments powers to prohibit receipt of foreign contribution, to grant registration, or to order suspension /
cancellation / renewal of certificate etc.
9. The powers of inspection, search and seizures may be tools for causing harassment to NGOs and puts them virtually in a position of subordination to the
authorities.
Mechanisms, Laws, Institutions and Bodies for Vulnerable Sections
96/97
7/7/2014
Evernote Export
97/97

Paper 2 3

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Paper 2 3

Uploaded by

Copyright:

Available Formats

7/7/2014

Political commitment is lacking.

Amritsar-Delhi-Kolk ata Industrial Corridor (ADKIC) Project

FIPB vs CCEA vs CCI

Minimum size is 5000 ha.

Special Category States

Top-Down Budgeting Techniques

Security and Risks

National Oil Spill Contingency Plan (NOSDCP)

Risk assessment is an important initial step.

Flood Control and Management

The Finance Mechanism

To lay down policies on disaster management.

The National Executive Committee (Secretary Level Body)

Lay down the State disaster management policy.

The State Executive Committee (Chief Secretary Level Body)

The District Disaster Management Authority (Collector Level Body)

Measures to be taken for the prevention and mitigation.

The vulnerability of different parts of the State to different forms of disasters.

The District Disaster Management Plan (Prepared by DDMA)

The National Disaster Response Force

Analytical Issues in Disaster Management in India

standards and protocols that can be accepted at national level.

Emergency Plan at the District Level

Civil Defence (Amendment) Act, 2010

Security Challenges - Role of Media

Central Monitoring System (CMS)

Principles Guiding Surveillance in a Democracy

International Internet Governance

Security Challenges - Cyber Security Basics

IT Act Section 66A

causes annoyance, inconvenience, insults or promotes hatred or ill-will.

National Cyber Security Policy, 2013

Weaknesses in India's Cyber Security Architecture

Security Challenges - Money Laundering

United Jehad Council

Presumptions under the Law

Complexity in Indian Borders

Changes Post 26/11 in Maritime Security

Border Area Development Programme

Land Ports Authority of India (LPAI) Act

Evolution and Current Status of LWE

Recent Strategy Decisions to Counter Naxalism

Factors Behind Worsening of the Situation

Genuine Grievances of Tribals

Evasion of land ceiling laws.

Displacement and Forced Evictions

What Needs to be Done

Amendment to ST (Recognition of Rights) Rules, 2012

SWOT Analysis for Indian Private Sector

Aircraft Carriers Launch Technologies

Cabinet Committee on Security

Top structure is civilian.

Governance and Polity

CBI Autonomy Affidavit

Separation of Powers: Legislature vs Executive

3. These funds should have actually gone to the PRIs.

Dispute Resolution Mechanisms and Instiutions

Argument is it could lead to swifter dispensation of justice.

Gag on Judges' Observations in the Judicial (Standards and Accountability) Bill

Ministries and Departments of Government

Government should only focus on its core areas.