FG HFG HFDG Hfhgfs Hjhsjaj Jdy

INSIGHTS into EDITORIAL
DECEMBER
2016
INSIGHTS into EDITORIAL | DECEMBER 2016
INSIGHTS into EDITORIAL ___________________________________________________________ 2

01/12: Indias missing girl children ____________________________________________________________________ 2
02/12: The message from Amritsar ____________________________________________________________________ 4
03/12: Making of a legislative court (National Anthem Issue) ______________________________________________ 7
06/12: CBI Role of Director, Reforms in its Functions ____________________________________________________ 9
07/12: Jagjit Singh Case Contract Workers vs Permanent Workers ________________________________________ 11
08/12: Demonetization, Election Commission and Electoral Reforms _______________________________________ 14
09/12: India and Oil Prices __________________________________________________________________________ 16
10/12: Regulating the digital payment industry_________________________________________________________ 18
12/12: Can only love for our postman ensure success for India Post Payments Bank? _________________________ 20
13/12: Cyclone Vardah _____________________________________________________________________________ 23
14/12: Revamping the Income Tax Appellate Tribunal ___________________________________________________ 27
15/12: Indias UNSC Bid: Is it different this time? _______________________________________________________ 29
16/12: The Forest Rights Act (FRA), its Dilution and Tribals _______________________________________________ 32
17/12: The Rights of Persons with Disabilities Bill Rights Issue ___________________________________________ 35
19/12: Agriculture a fertile ground for digitization ______________________________________________________ 37
20/12: The unmaking of Parliament __________________________________________________________________ 39
21/12: Iron jet stream detected in Earths outer core ___________________________________________________ 42
22/12: Ending the Manipur blockade _________________________________________________________________ 44
23/12: Boosting Indian software products _____________________________________________________________ 46
24/12: Chinas First Cyber Security Law _______________________________________________________________ 49
26/12: Karnatakas dangerous new reservation policy ___________________________________________________ 52
27/12: Addressing Indias water dispute problem _______________________________________________________ 54
29/12: A fair tax for long-term capital gains____________________________________________________________ 57
30/12: Comment on the Proposed National Water Commission ___________________________________________ 59
31/12: Why more than note-ban, India needs a Big Bad Bank _____________________________________________ 61
Insights into Issues _______________________________________________________________ 64

1. Surrogacy (Regulation) Bill, 2016________________________________________________________________ 64
2. Waste Management __________________________________________________________________________ 67
3. Antimicrobial resistance ______________________________________________________________________ 72
4. Merger of Railway Budget into the General Budget ________________________________________________ 76
www.insightsonindia.com 1 Insights IAS

INSIGHTS into EDITORIAL
01/12: Indias missing girl children

Summary:
The demographic transition in India has brought along an ugly unintended consequence a historically
strong preference for sons over daughters in these societies has strengthened with the decline in
fertility, thus worsening the female-male sex ratio at birth. New data from the Civil Registration
System of the Registrar General of India point to the hardening of the pattern, with a fall in sex ratio
at birth from 898 girls to 1,000 boys in 2013, to 887 a year 2014. This depressing trend is consistent
with evidence from the Census figures of 2001 and 2011.
The low child sex ratio in India arises from two distinct but inter-related phenomena:
Sex-selective abortions and excess female infant mortality, both of which are the result of a strong
cultural preference for sons over daughters. Some estimates have put the number of missing females
(unborn girls) in India as high as 37 million.
Why worry about this trend?
The low and falling child sex ratio in the country is a matter of policy concern, not only because it
violates the human rights of unborn and infant girls but also because it deprives the country of the
potential economic and social contribution of these missing women.
In addition, there may be longer-run adverse impacts from a marriage market squeeze caused by an
excess supply of male relative to female youth. Already, states like Haryana and Punjab, where the sex
ratio has been extremely distorted for several decades, have been experiencing bride trafficking.
What has the government done to arrest this trend?
After abortion was legalised in India in 1971, and technologies to diagnose the sex of the fetus became
widely available, the practice of sex-selective abortions became widespread. As the prices for sex-
selection diagnostic tests fell during the 1980s and 1990s, the practice became even more rampant.
The Indian government finally responded to this problem by passing the Pre-Conception and Pre-
Natal Diagnostics Techniques (PNDT) (Prohibition of Sex Selection) Act in 1994.
The Act prohibited the use of diagnostic methods to diagnose the sex of an unborn child.
However, there is a general perception that the Act has not been effective, as the child sex ratio
has continued to fall.
What needs to be taken care of?
There are many loopholes in the implementation of the PCNDT Act, namely, under-utilization of funds,
non-renewal of registration leading to automatic renewal of registration, non-maintenance of
patients details and diagnostic records, non-maintenance of records by the authorities, absence of
regular inspection of ultrasonography (USG) centres, lack of documentation of inspection report, lack
of mapping and regulation of USG equipment, and so on. They need to be addressed at the earliest.

Indias efforts to combat sex selection also suffer from the lack of a central supervisory mechanism.
Currently, the PC&PNDT Act is under the Ministry of Health and Family Welfare which by definition is
conscious of the interests of the medical lobby. Yet, all schemes for the girl child fall under the Ministry
of Women and Child Development. Further, birth registration comes under the Ministry of Home
Affairs. There is no synergy between the three ministries.
Also, a wider assessment needs to be made on why States such as Tamil Nadu with a strong social
development foundation have slipped on sex ratio at birth (834), going by the CRS data for 2014. The
cradle baby scheme was started in 1992 in Tamil Nadu to raise the survival chances of girl children by
encouraging mothers to give them anonymously for adoption. Yet, the latest numbers, together with
the persistence of the programme after 24 years, and 260 babies being abandoned in just one centre
over a six-year period, make it clear that national policy has achieved little in real terms.
What needs to be done now?
Dowry is also one of the main causes of low sex ratio. The trend of taking and giving of dowry
which takes place mostly in educated and upper class homes can be discouraged by laws and
awareness among the peoples.
Children should be taught to uphold morals and refrain from practices of dowry, female foeticide,
and gender bias. The vulnerable minds of the children should be so influenced that they grow up
as adults who consider practicing dowry and female foeticide as immoral.
Women should also be socialized from early childhood to consider themselves as equal to men.
This would be a positive influence on the coming generations as todays girl child would be
tomorrows mother as well as mother in-law.
The major barrier in the way towards the balanced gender structure is gender inequality based
on the socio-cultural issues. The systematic discrimination of the females needs to be tackled
from our society.
In order to marshal support of various groups and channelizing the efforts in a focused manner,
government must take a lead in establishing a mission for balancing the sex ratio by the next
census operation through a coordinated mix of reinforcement programmes and support
mechanism.
Way ahead:
This trend has, in some cases, prompted the Supreme Court to take note of the situation, and the
National Human Rights Commission to ask for an explanation from State governments.
The government has also responded to the silent crisis with the Beti Bachao, Beti Padhao
campaign, which focusses on the prevention of sex-selective abortions, creation of opportunities
for education and protection of girl children. Now that the scheme is set to enter its third year in
January, there should be a speedy assessment of its working, particularly in districts with a poor
sex ratio where it has been intensively implemented.
However, the overall challenge can only be met by all on round realisation that even in the
patriarchal set up, it is essential to maintain a natural balance between the sexes failing which
not only the social system, but also entire economic system would get damaged beyond repair.

Conclusion:
Declining sex ratio is a silent emergency. But the crisis is real, and its persistence has profound and
frightening implications for society and the future of humankind. Clearly, there is a need to go beyond
slogans and institute tangible schemes. Enforcement of the law that prohibits determination of the
sex of the foetus must go hand in hand with massive social investments to protect both immediate
and long-term prospects of girls in the form of cash incentives through registration of births, a
continuum of health care, early educational opportunities and social protection. Half-measures cannot
produce a dramatic reversal of the shameful national record.
02/12: The message from Amritsar

Summary:
Since the toppling of the Taliban government in 2001, India and Afghanistan have witnessed a
significant strengthening of their bilateral ties. As Afghanistans stability is important for Indias own,
India has readily supported the growth of democracy in its neighbour, battered as it is by many years
of conflict and instability.
Upcoming Heart of Asia (HoA) conference is one such attempt by India. India is hosting the Heart
of Asia (HoA) conference this week in Amritsar. It is aimed at speeding up reconstruction in war-
torn Afghanistan and bringing peace and normalcy to the nation.
It will see participation from 14 states: Afghanistan, Azerbaijan, China, India, Iran, Kazakhstan,
Kyrgyz Republic, Pakistan, Russia, Saudi Arabia, Tajikistan, Turkey, Turkmenistan and the United
Arab Emirates.
Indias assistance to Afghanistan:
India has sought to show its support for a stable and democratic
Afghanistan with significant investments and financial assistance.
Playing a major role in Afghanistans social and economic
development, India has provided extensive development assistance
amounting to some $2 billion since 2001. Much of this assistance has
been focused on infrastructure projects, humanitarian assistance,
community-based development projects, and education and humanitarian needs.
India has also contributed in the strengthening of the Afghan army by providing military
equipment such as helicopters and training to officers and soldiers. The building of the Afghan-
India Friendship Dam (Salma Dam) and the Zaranj-Delaram highway demonstrates Indias
commitment in assisting Afghan development and connecting the country to Iran and other parts
of Central Asia.
Very recently in June 2016, PM Modi visited Afghanistan to inaugurate the $290-million Salma
Dam project. Designed to irrigate fields in 640 villages, this dam may well be a symbol of Indias
long-term commitment to the region.
The Iran-India-Afghanistan trilateral trade and transit corridor agreement on the Chabahar port
was also recently signed.

Why is India important for Afghanistan?
Indias bilateral trade with Afghanistan stood at $684.47 million in 2014-15, an increase of 0.20%
over $683.10 million a year earlier, and 20.41% higher than $568.44 million in 2010-11. Indias
exports to Afghanistan in 2014-15 stood at $ 422.56 million, while its imports from that country
were worth $261.91 million. Despite the lack of direct land access, India is the second-largest
destination for Afghan exports.
For many Afghans, India is among the few places that accords them respect and dignity, unlike
many others which treat them as unwanted, backward, terrorists or drug-dealers.
Both India and Afghanistan are also the main victims of Rawalpindis use of terrorism to pursue
its regional ambition and inherent insecurity.
Also, for Afghanistans nascent democracy, development and its state-building process, India is
an inspiration and a model. India has had success in managing its diverse communities, building
its state institutions, nurturing an indigenous democracy, womens empowerment and
transitioning from an agrarian society into a developing nation. Afghanistan can learn a great deal
from India.
Besides, Indian Islam is a living manifestation of Khurasani Islam, which was once the
prevailing flavour in Afghanistan: A humane, peaceful, tolerant, ethical and civic Islam.
India has so far shown an unusual tenacity in its dealings with Afghanistan, and a willingness to
move beyond the binary of economic cooperation and military engagement and evolve a
comprehensive policy which involves all dimensions of power. This has enhanced Indian
credibility in Afghanistan which is a tough country.
Why India should be interested in the development of Afghanistan?
Indian interests, including its Embassy and consulates, are repeatedly targeted in Afghanistan.
Both the countries face problems of terrorism backed by state and non-state actors in the
common neighbour- Pakistan. Hence, co-operation in security measures is essential for stability
in the region. Afghanistans support is also necessary in dismantling of safe havens and terror
sanctuaries in the region.
Indias need to access Afghanistan and Central Asias natural resources and markets
complements its vast market for Afghanistans growing economy. India is one of the closest
regional powers that has invested in institution and infrastructure building in Afghanistan.
Improving connectivity in the region therefore helps India harness trade and transit potential of
Afghanistan.
For India, Afghanistan also has immense strategic potential. Besides the infrastructure work India
has initiated and completed, it has also signed the TAPI pipeline project that aims to bring natural
gas from Turkmenistan through Afghanistan and Pakistan to India. A friendly and stable
environment in Kabul is geopolitical insurance against Pakistans deep state.
What should be done to strengthen the ties between the two countries?
India and Afghanistans Strategic Partnership Agreement should be effectively implemented as it

shall provide a framework for future bilateral engagements.
The SAARC grouping (South Asian Association for Regional Cooperation) can be utilised as a
common platform for deeper engagement and cooperation with Afghanistan. As a member of

SAARC, India needs to facilitate Afghanistan to embrace security and peace by investing in large-
scale projects in order to create more job opportunities that are currently lacking in the region.
Facilitating trade and development-related activities can assist in achieving a peaceful and stable
Afghanistan. Projects such as the TAPI (Turkmenistan-Afghanistan-Pakistan-India) gas pipeline
can be utilised to strengthen Indo-Afghan ties. This project stands to benefit the Afghan economy
as it will provide gas exports to energy-demanding countries like India and Pakistan. Afghanistan
shall act as a gateway to connect Central Asia to Pakistan and India. This will also create an impact
on the overall infrastructural and economic development of Afghanistan.
The much anticipated India-Afghanistan-Iran trilateral agreement also has huge potential and can
aim to benefit long-term Indo-Afghan ties. This will allow India access to Afghanistan via the
strategically located Iranian port of Chabahar. The agreement will significantly enhance the utility
of the port, as it contributes to Afghanistans economic growth and facilitate better regional
connectivity by connecting India and Afghanistan to Central Asia. India and Afghanistan ties can
also be utilised in enhancing regional efforts in activities like counter-terrorism and counter-
narcotics trafficking.
There is huge potential in trilateral cooperation between India, Afghanistan and China, as the
first two can gain immensely under the One Belt One Road (OBOR) project and establish
Afghanistan as a trade and transit hub.
It is imperative to engage with the Afghan civil society through interaction between the Indian
and Afghan journalists, think tank institutions, and other opinion-makers. This will enable a
deeper understanding of the perception at the ground level and assist in building institutions that
encourage the potential of young leaders.
In order to boost bilateral relations, more people-to-people contact should be encouraged by
way of access to education, healthcare, and student or faculty exchange programmes. While air
connectivity between the two countries has increased over the years, the frequency of flights
can be increased in order to encourage greater movement of citizens, particularly for medical
purposes, education, and tourism.
The Afghan government requires greater regional support from its neighbours, particularly India,
in order to tackle the deteriorating security situation and to assist in the regions overall
economic development. India recognises that the presence of both development and democracy
are the key to tackling terrorism within Afghanistan.
Way ahead:
While India and Afghanistan have maintained historical and friendly relations, the potential of the two
countries cooperation has yet to be fully realised. A crucial impediment is related to Pakistans fears
over Indian interests in Afghanistan; this has led India to become more cautious in its involvement.
Further, given the complex relationship between the United States, China and Pakistan and their
interests in Afghanistan, India has, historically, focused on a development and soft power approach
while keeping its distance from any deep political involvement in Afghanistan.
But, given their long history of friendly relations, India and Afghanistan stand to gain a great deal
by expanding their areas of cooperation and engagement. India can play a greater role in assisting
Afghanistans initiative towards stability and development, which in turn will create a ripple
effect for the larger interest of South Asia.

Apart from providing infrastructural and military support, India needs to be more proactive on
the international front by getting involved in a joint resolution for a larger Afghan solution. While
Afghans have viewed Indias support to their country extremely favourably, it is unfortunate that
hurdles are being created by the peculiar dynamics of India-Pakistan relations.
However, India must overcome its dithering position towards providing military support to
Afghanistan. New Delhi needs to continue providing assistance for training the Afghan security
forces in India, in coordination with NATO commanders. This will be of great benefit for NATO
while at the same time strengthening ties between Kabul and New Delhi.
India cannot afford to slow down on its engagement in Afghanistan because of Pakistans
paranoia. In the absence of boots on the ground in Afghanistan which will likely cause great
distrust in Islamabad about Indias intentions India must seek new avenues for cooperation
aside from traditional development and humanitarian assistance.
Conclusion:
Close political ties with Kabul, strong goodwill among Afghan citizens and acceptance of India as an
important regional player on Afghan matters indicate that Indias aid to Afghanistan has not gone
waste. Afghanistan now is an international project for India. It is beyond the capacity of India alone to
resolve the serious security and development challenges in the region. Therefore, enhanced Indian
engagement at this point will be a big boost to both India and Afghanistan.
03/12: Making of a legislative court (National Anthem Issue)

Summary:
The Supreme Court of India, recently, gave an order that the

national anthem will have to be played before feature films at
cinema halls all over the country, and that those present in
these halls are obliged to stand up to show respect. While the
move is welcome, the manner in which it is being enforced has
attracted criticisms from many sections across the country.
This effectively reverses an earlier judgment of the

Supreme Court, which ruled that not standing up for the
anthem does not amount to disrespecting it, going by the Prevention of Insults to National
Honour Act, 1951.
The order has also triggered a debate among the intelligentsia of the country. Many have argued
that people should not be forced to stand for the National Anthem in cinema halls.
Whats the concern now?
By taking the patriotism test into the cinema hall, by forcefeeding a notion of nationalism to people
seeking entertainment, the court has not just offered an instance of striking judicial overreach. It has
also let down all those who have come to look up to it as a custodian of constitutional freedoms. That
the court is invoking the Constitution while moving against its spirit is even more disquieting.

What the constitution says in this regard?
Indias Constitution speaks of respect to the national flag and anthem as a fundamental duty in Part
1V A a non-justiciable part of the document. Article 51(A) says that it shall be the duty of every
citizen of India (a) to abide by the Constitution and respect the ideals of the national flag and the
national anthem. The message of the founding fathers was clear: Respect to the nation and its
symbols would not be enforced by state diktat or extracted through legal compulsion. These Duties
are, perhaps not coincidentally, currently in vogue even outside the judiciary.
Issues associated with this move:
Mandatory screening: There is no objection to cinemas choosing to screen the anthem if they
want to. Nor is there an objection to the anthem being sung in sports stadiums or elsewhere by
anyone who wants to sing it. But there is absolutely no legal basis to compel cinemas or any other
private entity to screen the anthem. Forcing private institutions to play the anthem is a clear
violation of their freedoms of free speech and trade.
Compelled standing: In 1986, the Supreme Court made it clear that no provision of law obliges
anyone to sing the anthem. Mandatory singing violated the constitutionally-guaranteed right to
free speech, the court said, but there was a duty to stand when the anthem was sung. That
position remains the law today. But, for many, standing need not be necessary to demonstrate
respect; and for some, being forced to participate in arbitrary exhibitions of nationalism is
undemocratic. The point of a free society is to allow everybody in it to peacefully express
themselves. When the state compels people to stand for the anthem, it takes away some of that
freedom.
Ban on dramatization: The Supreme Courts 1986 judgment on respecting the anthem was
delivered in the context of school assemblies. The court said nothing about the anthem being sung
by actors in a movie.
No constitutional mandate: The constitution does not mandate that one must stand in attention
when the national anthem is being played or when the flag is raised. Constitutionally and legally,
one is only obliged not to show disrespect to the anthem.
Prevention of Insult to National Honor Act: The act to which the court referred to, deals with
preventing the singing of the National Anthem or causing disturbance to any assembly engaged
in singing of the Anthem but makes no provision enforcing the actual singing of the National
Anthem.
Way ahead:
There is no question that judicial independence is of paramount importance. Whatever scheme of

selecting judges we adopt should ensure that. But equally, it is important for the judges to
demonstrate that independence does not become an excuse to create a judiciary that is poor in
quality, undiscerning in its judgment, not aware of basic moral distinctions, populist rather than legal,
sentimental rather than reasoned, casual in its understanding of when rights are being violated,
impractical in its orders, but most of all, imperious in the way it usurps all powers for judges.
The critics of the decision say that feeling of love and respect for the country should come to a citizen
from within and something as sacred as the National Anthem should be played or sung only on special
occasions. There have been instances of vigilantism in movie halls and other public spaces targeting

people for their unwillingness or inability to wear their patriotism on their sleeve. That the highest
court of the land could join in this growing, dreadful clamour is a disturbing prospect. The court must
urgently review Tuesdays order.
Conclusion:
Respect for ones country depends entirely on the way we think; its a way of life. It cannot be taught.
Neither can it be enforced or imposed upon us. And it definitely should not be neatly wrapped in a
bow and presented to us as committed patriotism and nationalism, because then we begin to tread
a complicated territory. Rabindranath Tagore, the author of Jana Gana Mana, fiercely voiced against
the bondage of nationalism. He wrote in The Modern Review, a respected Calcutta journal that the
time, that he hoped to achieve the unity of man by destroying the bondage of nationalism.
06/12: CBI Role of Director, Reforms in its Functions

Summary:
NGO Common Cause has moved the Supreme Court seeking quashing of Rakesh Asthanas
appointment as interim director of the CBI, alleging that such ad hoc arrangement violated the apex
courts 1998 judgment.
Background:
Recently, Rakesh Asthana was named as interim Central Bureau of Investigation (CBI) director by the
government. On the same day CBI Director Anil Sinha retired from the post. This time the government
did not name any full-time chief.
According to the petitioner, the government has failed to appoint a director of the CBI as per Section
4A of the Delhi Special Police Establishment Act, 1946, on the expiry of term of the last incumbent on
December 2.
What the law says?
The head of the CBI is selected by a group comprising the Prime Minister, the Leader of Opposition or
largest party in opposition in Lok Sabha and the Chief Justice of India (CJI).
Historical background:
Indias first agency to investigate corruption, the Special Police Establishment, was set up in 1941 six
years before independence from British rule to probe bribery and corruption in the country during
World War II. That agency was part of Indias War Department.
In 1946, it was brought under the Home Department and its remit was expanded to investigate
corruption in central and state governments under the Delhi Special Police Establishment Act.
That law gave the central government the right to set up and govern a special police force to
investigate acts of corruption. The special police force became the Central Bureau of
Investigation after the Home Ministry, which is in charge of domestic security, decided to expand
its powers and change its name in 1963.

The CBI is still governed by the 1946 act. But in a series of moves in the 1960s, its remit was
expanded from investigating corruption among senior federal civil servants to being able to
probe irregularities at all public sector bodies, including state-owned banks. Its investigations
also include prominent crimes, such as cases of terrorism, murder and kidnapping.
Problems associated with CBI:
The agency is dependent on the home ministry for staffing, since many of its investigators come
from the Indian Police Service. The agency depends on the law ministry for lawyers and also lacks
functional autonomy to some extent.
The CBI, run by IPS officers on deputation, is also susceptible to the governments ability to
manipulate the senior officers, because they are dependent on the Central government for future
postings.
Another great constraint on the CBI is its dependence on State governments for invoking its
authority to investigate cases in a State, even when such investigation targets a Central
government employee.
Since police is a State subject under the Constitution, and the CBI acts as per the procedure
prescribed by the Code of Criminal Procedure (CrPC), which makes it a police agency, the CBI
needs the consent of the State government in question before it can make its presence in that
State. This is a cumbersome procedure and has led to some ridiculous situations.
SC over CBIs autonomy:
The landmark judgment in Vineet Narain v. Union of India in 1997 laid out several steps to secure the
autonomy of CBI. Says Mr. Narain: Limited autonomy was granted. Still the administrative and
financial control wrests with the Ministry of Personnel, and thus the government can directly control
CBI.
What needs to be done?
The first reform is to ensure that CBI operates under a formal, modern legal framework that has
been written for a contemporary investigative agency. A new CBI Act should be promulgated that
ensures the autonomy of CBI while at the same time improving the quality of supervision.
The Lokpal Act already calls for a three-member committee made up of the prime minister, the
leader of the opposition and the chief justice of the Supreme Court to select the director.
However, not enough has been done to administratively protect CBI from political interference.
For this to happen, the new Act must specify criminal culpability for government interference.
One of the demands that has been before Supreme Court, and in line with international best
practices, is for the CBI to develop its own dedicated cadre of officers who are not bothered
about deputation and abrupt transfers. The CBI did recruit some officers in the past to its cadre,
but that effort has gone nowhere, and all senior posts in the CBI are now held by Indian Police
Service (IPS) officers.
It is also possible to consider granting the CBI and other federal investigation agencies the kind
of autonomy that the Comptroller and Auditor General enjoyshe is only accountable to
Parliament. A more efficient parliamentary oversight over the federal criminal and intelligence
agencies could be a way forward to ensure better accountability, despite concerns regarding
political misuse of the oversight.

The CBI is not really popular among the youth who are looking for Central government
employment through the Union Public Service Commission examination route, other than those
appearing for the All India Services, including the Indian Police Service. This makes a case for a
fresh look at the service conditions for direct recruitment to the CBI.
Way ahead:
The CBI continues to operate under a notification issued by the Ministry of Home Affairs on April 1,
1963, for investigating crimes under the Delhi Special Police Establishment Act, which derives its
legacy from concerns during World War II regarding misappropriation of war spending. A
comprehensive act of Parliament setting out the autonomy, powers, etc. is the first step towards
improving the CBIs autonomy.
Conclusion:
It is time to drum up political support to reform the CBI. Why this has not found favour till now is
perhaps the irrational fear that the CBI will become far too autonomous and powerful. Persons who
peddle this argument obfuscate the truth that an autonomous CBI is not one that is devoid of
accountability.
07/12: Jagjit Singh Case Contract Workers vs Permanent Workers

Summary:
In a significant judgment in the Jagjit Singh Case, the Supreme

Court has ruled that contract workers should get the same pay as
permanent workers. It held that denial of equal pay for equal work
to daily wagers, temporary, casual and contractual employees
amounted to exploitative enslavement, emerging out of a
domineering position. The court also made the philosophical
point that denial of the principle of equal pay for equal work is a
violation of human dignity. The verdict came in the context of workers employed by the government.
With this, the constitutional principle of equal pay for equal work has been upheld by the
Supreme Court with respect to temporary employees vis--vis permanent employees in the
government sector.
Important observations made by the court:
Not paying the same wages, despite the work being the same, is violative of Article 145 of the
Constitution of India and amounts to exploitation in a welfare state committed to a socialist
pattern of society.
The right of equal wages claimed by temporary employees emerges, inter alia, from Article 397
of the Constitution.
The claim for equal wages would be sustainable where an employee is required to discharge
similar duties and responsibilities as permanent employees and the concerned employee
possesses the qualifications prescribed for the particular post.

In a claim for equal wages, the duration for which an employee remains or has remained
engaged, the manner of selection/appointment etc. would be inconsequential, insofar as the
applicability of the principle is concerned.
Based on the principle flowing from Article 38(2) of the Constitution, the Government cannot
deny a temporary employee at least the minimum wage being paid to an employee in the
corresponding regular cadre, along with dearness allowance and additional dearness allowance,
as well as all other benefits which are being extended to casual workers.
The classification of workers (as unskilled, semi-skilled and skilled), doing the same work, into
different categories, for payment of wages at different rates is not tenable. Such an act of the
employer would amount to exploitation and shall be arbitrary and discriminatory, and therefore,
violative of Articles 14 and 16 of the Constitution.
If daily-wage employees can establish that they are performing equal work of equal quality, and
that all the other relevant factors are fulfilled, a direction by a court to pay such employees equal
wages (from the date of filing the writ petition), would be justified.
Significance of this judgment:
The verdict strikes at the heart of the inequity that characterises the treatment of labour in both the
public and private sector, whose defining characteristic is the division of workers into a two-tier caste
system of regular and contract workers.
In establishments across the country, an elite minority of permanent workers enjoy relative job
security and higher wages, while the vast majority, comprising casual or contract workers, toil under
terms where they can be terminated any time without reason, and get paid a fraction of what the
regular workers get.
Background:
Contract labour was initially employed only for non-core work such as gardening, cleaning, and
maintenance. Soon, they began to be increasingly employed in production as well. Workers protested.
In response, the CL Act was enacted. It expressly prohibits the employment of contract labour for
perennial work, that is, in core production.
Bu, it is now widely believed that it was the Contract Labour (Regulation and Abolition) Act, 1970
(CL Act), ostensibly enacted to abolish contract labour, that cemented their exploitation by
offering a legal operating framework to labour contractors.
Before this legislation, temporary workers and permanent workers could make claims on their
employer and negotiate as members of the same union. But the CL Act, by introducing a
distinction between an employer and a principal employer, kept the door open for expansion
of contractualisation.
Labour contractors easily circumvent the requirement made by CL Act through what have come to be
known as sham contracts. It is a contract that may show a worker as having been hired for a cleaning
job. But once he enters the factory premises, he is engaged in production work. There is no
documentation to show that a contract worker who, on paper, is engaged for cleaning work, is actually
in production.

Why SC verdict would have little impact?
It is being felt that the SC verdict would have an immediate, and positive, bearing on contract workers
compensation. Unfortunately, this is unlikely to happen, due to the difference between permanent
and contract workers in access to collective bargaining.
As per the Trade Unions Act, 1926, any workman who works in a factory can join a union of that
factory. But trade unions typically have only permanent workers as members. The reason cited
is that contract workers are not employees of the employer in question and so should not find
representation in a union body formed for the purpose of negotiating with the said employer.
Contract workers are hired by the labour contractor, who is empanelled with the employer as a
supplier of contract labour, and who pays their salaries.
What the law says?
According to experts, not being on the rolls of an employer does not disqualify a contract worker from
being a member of a factorys union. Experts point to section 2 (g) of the Trade Union Act , which
defines workmen, for the purposes of a trade union, as all persons employed in trade or industry
whether or not in the employment of the employer with whom the trade dispute arises.
But, why are many trade unions reluctant to give membership and voting rights to contract workers?
In an industrial climate extremely hostile to any union activity, workers believe that forming a
union that also includes contract workers is bound to provoke the management into even greater
hostility.
Managements refuse point blank to discuss with unionists any issues concerning contract
workers.
Contract workers are far more insecure compared to regular workers. In an era where companies
frequently terminate even a permanent worker for engaging in union mobilisation, the stakes
are too high for contract workers, who could be summarily dismissed, without any consequences,
by the management.
Also, in many trade unions, permanent workers themselves dont want to extend union
membership to contract workers. Given that permanent workers salaries are much higher,
economic self-interest militates against the inclusion of contract workers in union membership.
Way ahead:
The SC judgment thus poses an old question to Indias labour movement: how to unionise contract
workers, who are in one factory today, in another the next, and whose interests are all too easily
played off against those of permanent workers? Unless the labour movement comes up with an
answer to this question, legislations and judicial pronouncements may not change things much on the
ground.
Overall, the Supreme Courts judgment in the Jagjit Singh case represents a very small step forward in
a narrow area of law that has not reached its full potential in ensuring social welfare of all workers
due to the lack of legislative action and the absence of judicial imagination.

Conclusion:
Now, union leaders should focus on securing decent work that guarantees pay parity while in
employment. The government must deploy staff with the flexibility they need. A reform in labour laws
to readjust the size of the workforce at short notice, hire new skills, scale up or down, depending on
way demand moves, will make India competitive.
08/12: Demonetization, Election Commission and Electoral Reforms

Summary:
India today stands as a model for emerging democracies across

the world. Having held periodic elections since 1951, with the
exception of the two-year Emergency period, the efficacy of
the electoral structures both at the national and State-levels
has to a great extent defined Indias success as a modern
democratic nation-State. Unfortunately, over the past two
decades, the essence of democracy has been corroded by
corruption in the electoral financing structure. It is believed
that the governments recent move against black money
prepares the ground for reforms of electoral finance.
Background:
The Election Commission of India has been deeply concerned about the use of black money in
elections. It has repeatedly written to the government, suggesting electoral reforms for the last two
decades. On its part, the ECI has been doing its best. The setting up of the expenditure monitoring
division in 2010 in the commission was a milestone in its efforts to challenge the abuse of money in
elections. Stringent guidelines, and strict enforcement, led to the seizure of hundreds of crores of
rupees and put some fear of god in the hearts of the profligate politicians. However, the threat posed
by black money still remains.
How bad is the problem?
Estimates say nearly $5billion was pumped into 2014 Lok Sabha elections, most of which was black
money. Such gargantuan sums of money, coupled with the fact that there is visible involvement of
some corporates in the campaign, gives an appearance of corruption.
State-funding is a staple of election financing in countries with the fairest elections. In India, the
void is filled by illicit corporate donations, resulting in quid pro quo post-elections.
A dysfunctional system of election financing is also major cause of criminalisation of Indian
politics in the absence of state support, funds must be managed from somewhere, and more
muscle usually ensures more money.
System of election financing in India:
The system is two-tiered based on parties and candidates. The parties are required to disclose
income but not expenditure, while its the other way round for candidates.

The parties, whose main source of income comes from donations by individuals and corporations,
use loopholes in the law to avoid disclosing identities of even the big individual donors. As regards
corporate donations, despite the availability of tax breaks, most of it is done off-the-books mainly
to avoid reprisals in case the opposing party wins.
On the other hand, the candidates grossly underreport expenditure while actually spending far
higher than the legal limits allow. Most of the illegal spending by candidates comes from the
assistance given to them by their parties which carry greater financial heft, and have no ceiling
on expenditure.
What reforms are needed?
Prescribe a ceiling for political parties expenditure, like that for the candidates.
Consider state funding of political parties (not elections) with independent audit and a complete
ban on private donations.
Enforce internal democracy and transparency in the working of the political parties. Bring them
under the RTI.
Set up an independent national election fund where all tax-free donations could be made. It
could be operated by the ECI or any other independent body.
Accept the ECIs proposal to legally empower it to cancel elections where credible evidence of
abuse of money has been found.
Debar persons against whom cases of heinous offences are pending in courts from contesting
elections.
Empower the ECI to de-register those political parties which have not contested any election for
10 years and yet benefited from tax exemptions.
Make paid news an electoral offence with two years imprisonment by declaring it a corrupt
practice (Sec 100 RP Act) and undue influence (Sec 123(2)).
Way ahead:
From asking political candidates to disclose all contributions received by them to making it mandatory
for corporates to seek shareholders approval at their annual general meetings before donating funds
to political parties, the Law Commission has recommended sweeping electoral reforms in its 255th
report submitted to the government. Now, it is up to the government to implement these reforms.
Conclusion:
The current form of political funding has become a burden on the economy. Many parliamentarians
have raised concerns over the use of excessive money in election campaigns. This presents the PM
with the best chance to carry out significant anti-corruption reforms in the history of independent
India.

09/12: India and Oil Prices

Summary:
Oil prices have gone up by about 15% in just one week. The recent monetary policy statement of the
Reserve Bank of India also highlighted that crude oil prices may firm up in the coming months and
could be a risk to the year-end inflation target.
Background:
Global commodity prices saw a dip but

then started to rise after the global
financial crisis. This is a counter-
intuitive thing that happened due to a
kind of a hysteresis and slowdown in
demand, and thus the resulting price
drop actually happened much later.
The prices peaked in 2012 when the

OPEC average yearly crude oil price touched a high of almost $110. Intra-day prices reached much
higher. Economies exporting oil at that time were making merry. But then prices began to plummet
touching a low of $40 in 2016. The intra-day prices dropped to much lower levels.
Why there was decrease in oil prices?
Oversupply in the international markets due to decrease in Chinese demand.

Slowdown in the developed world and the ensuing impact on world trade.
Shale oil boom in the US which required less upfront investment and helped pushing up oil
supply.
Removal of economic sanctions against Iran and it consequently ramping up production.
OPEC members not being able to reach an agreement was yet another factor for oversupply.
Why oil prices may go up now?
Recently, the Organization of the Petroleum Exporting Countries (Opec) decided to cut production for
the first time in eight years. they have decided to reduce output by about 1.2 million barrels per day
from January 2017.
Non-Opec members, including Russia, have also promised to cut production by another 600,000
barrels per day.
However, prices may not sustain at higher levels for long due to the following reasons:
The first test for prices will be whether OPECs members, known for their penchant for breaching
output caps, stick to the production levels set for them. The temptation to cheat for some such
as Venezuela and Algeria, which are relatively smaller producers and whose economies are in the
doldrums, will be high indeed.
Global demand also continues to remain weak and growth is unlikely to accelerate in the near
term.

At higher levels, US shale oil production, which suffered because of lower prices, will once again
become attractive.
Even if Opec is able to keep a watch on the production levels of its members, it will be difficult to
track a non-member country like Russia.
How low crude oil prices benefitted India?
India was a major gainer of the fall in crude oil prices as it depends on imports to cover over 75% of
its requirement.
While on the one hand, the low prices helped in containing the current account deficit and
lowering inflation, on the other hand it augmented revenues.
The government used this opportunity to impose higher taxes on petroleum productswhich
was instrumental in narrowing the fiscal deficit.
In the last fiscal year, indirect tax revenue was estimated to have exceeded the target by over Rs
54,000 crore.
How will rise in crude oil prices affect India?
If prices continue to rise, the government may have to roll back a part of the tax hike on
petroleum products. This will adversely affect the fiscal math and the ability of the government
to push capital expenditure.
Private consumption could also get affected because of higher fuel bills.
Companies that benefited from lower oil prices may also see a margin erosion as passing higher
input cost to the consumer could be difficult at this stage.
If oil prices manage to move up, some of gains will also be reversed. When oil prices were coming
down in 2014, every $10 fall in oil prices reduced inflation based on Wholesale Price Index and
Consumer Price Index by 0.5 and 0.2 percentage points, respectively. The impact on current
account deficit was 0.5% of the gross domestic product (GDP) and it improved fiscal balance by
0.1% of GDP. A price reversal is likely to have an opposite impact.
Besides, oil prices have risen at a time when economic activity in India is expected to take a hit
in the short run because of the ongoing currency crunch in the system. Higher oil prices will also
widen the current account deficit while the rupee has been under pressure because of a
strengthening dollar.
The OPEC deal has once again shown that strategic interests of nation states can converge (with both
Saudi Arabia and Iran agreeing to the deal) and that OPEC as a cartel is not dead. It still is important in
deciding the price of oil and impacting geopolitical outcomes in several countries. Countries like India
must invest in cleaner technology development, reducing their overt dependence on oil else they
risk being adversely affected each time the price of crude oil starts to rise.
Way ahead:
But what is perhaps important at this stage is the fact that Opec has actually managed to reach an
agreement to cut production with the support of non-members. Until recently, Opecs most influential

member Saudi Arabia was not willing to reduce production as it didnt want to lose market share to
other producers. But a deteriorating economic situation seems to have forced a rethink.
However, the real impact of the deal in the medium term will depend on how it is implemented and
whether Opec is able to build on this agreement. Most analysts are of the view that oil prices will not
sustain at higher levels because of the above mentioned reasons.
Conclusion:
Although oil prices have not reached threatening levels, Indian policymakers will do well to prepare
for the underlying shift in the way prices are determined.
10/12: Regulating the digital payment industry

The governments recent push towards a digital economy by incentivisation has been widely
appreciated. However, poised at a juncture when people are transforming payment habits by
embracing a particular payment mode, especially the unbanked segments of society, the digital
transaction regulatory framework requires a comprehensive legal framework assessment.
Concerns:
The government is pushing very strongly for a cashless society. After the demonetisation move,
several initiatives have been seen to further encourage going cashless. However, while cashless
transactions are a convenience and the future, it is being pushed without addressing critical
concerns.
The governments demonetisation move might have warranted an increase in transaction activity
on digital wallets, but measures to ensure the underlying cyber security parameters for digital

payments is still kept largely under the ambit of the Information Technology Act. India lacks laws
to protect consumers if they lose money during digital.
The electronic infrastructure space is also still under-developed in India and technology
governance is weak. The e-infrastructure today is woefully inadequate to serve the people in
semi-urban and rural areas. Internet penetration is low at 30%, and smartphone penetration
lower at 17%.
Anomalies also exist in the form of gaps in the regulatory mechanism of credit and debit cards,
and mobile wallets. For instance, the discount rate, charged to a merchant accepting card
payments, and sometimes to consumers, is by the banks themselves, and not by the regulator
the Reserve Bank of India, in this case.
A legal framework that can identify and set out the rights and obligations of each payment system
participant in the ordinary course of business and in adverse conditions should be put in place.
Such framework will have to cover the plethora of instruments and test them for conflict such as
with the new insolvency and banking laws.
Seamless cooperation between the bodies involved in policy and regulatory development must
be forged so as to oversee consistent application of rules and regulations governing all
participants.
The playing ground for entrepreneurs must be levelled so as to provide confidence, stability and
integrity in the financial system. This will enable participants in a payment system to move in
their own orbits performing functions that when interwoven ensure that the country has an
efficient, secure and reliable payment system that reduces the cost of exchanging goods and
services.
Further, in tune with the self-regulated entrepreneurship that the government is encouraging,
the system participant should be encouraged to submit a self-certification assessing and
disclosing the technical risks it faces at an enterprise level that can balloon into systemic risks.
The payments terrain should also expand and be enabled by regulations to accommodate new
kinds of participants in the system. This will foster further innovation that is bound to occur from
the disruption caused in the payment spaces, without the regulator having to play catch-up.
What should the regulator do?
RBI is the sole regulator for the payments industry space and derives its power to oversee the
payments industry from the Payment and Settlement Systems Act (2007) and its accompanying
regulations (2008). Several circulars and guidelines have been issued for the regulator to govern
prepaid instruments, intermediaries and the payment system operator.
RBI must now identify certain payment systems as critical and afford them systemic important
status similar to how it identified certain non-banking financial companies as systemically
important. Such singling out will ensure that their failure in a nascent payment industry does not
trigger further disruptions among system participants and stretch to larger financial markets.
The regulator must also in the days to come set up an end customer protection/guarantee fund
so she is protected when the largest participant/debtor in the payment system fails. This allows
for the deflection of liquidity crunch, so settlement system clearances are maintained without
the participants knocking on the doors of clogged courts.

Mobile wallets and mobile banking can be vulnerable to security breaches given that most
smartphone users have multiple apps installed, and almost all those apps have access to sensitive
user information on the phone. To make digital transactions truly secure, the Centre needs to
look at restricting the information that mobile apps seek and put a regulatory framework in place.
Way ahead:
Governments recent move to incentivise digital transactions is only one step towards a cashless
economy. Both front-end and back-end changes are required to spread awareness and enhance
usability of various digital payment modes.
Special efforts are required to teach both the less tech-savy as well as the unlettered on how
they could use such modes of transaction.
Infrastructure creation from networks and connectivity to ensuring last-mile availability of
ATMs and POS machines, specially in the rural areas needs to be massively stepped up.
Ensuring greater acceptability of digital money is also imperative. It is important to dispel doubts
and fears that people have about digital money and the security of their transactions.
Conclusion:
The digital payment revolution is the best disruption demonetisation has unleashed. An aspiring
economy like India should welcome this brave new world. The Centre must now wake up to the need
to make digital payments more secure.
12/12: Can only love for our postman ensure success for India Post
Payments Bank?
Summary:
In the wake of the demonetization drive, Indias financial sector is witnessing turbulence and the
payments space is waiting to be grabbed with new ideas and innovations to give a big push to a
cashless economy. In this regard, India Post Payments bank (IPPB), which was to be made operational
by March 2017, will be launched in January.

Background:
The Department of Post (DoP) had earlier applied to RBI for a banking licence for its fully-owned
subsidiary, India Post. The DoPs assets and liability position, as revealed by its balance sheet, was far
from satisfactory for RBIs comfort to allow the grant of a banking licence to the parent organization.
Its annual deficit kept increasing from Rs.5,339 crore in 2013-14 to Rs.6,378 crore in 2014-15 to
Rs.6,665 crore in the budget of 2015-16.
Therefore, the idea of payment bank was mooted. IPPB got an in-principle approval on 7 September
2015. It is the largest among the eight that are likely to start operations over the next few months.
Eleven entities received the Reserve Bank of Indias (RBIs) in-principle approval for floating payments
banks but three of them have left the field.
IPPB is entirely owned by the government of India and will be run independently by a professional
management even as DoP plays the role of a mentor. IPPB will start with a Rs400 crore equity capital
and a Rs400 crore grant from the government to set up a technology network in rural India.
Operational guidelines for Payment banks:
Capital requirement: The minimum paid-up equity capital for payments banks is Rs. 100 crore.
Leverage ratio: The payments bank should have a leverage ratio of not less than 3%, i.e., its
outside liabilities should not exceed 33.33 times its net worth (paid-up capital and reserves).
Promoters contribution: The promoters minimum initial contribution to the paid-up equity
capital of such payments bank shall at least be 40% for the first five years from the
commencement of its business.
Foreign shareholding: The foreign shareholding in the payments bank would be as per the Foreign
Direct Investment (FDI) policy for private sector banks as amended from time to time.
SLR: Apart from amounts maintained as Cash Reserve Ratio (CRR) with the Reserve Bank on its
outside demand and time liabilities, it will be required to invest minimum 75% of its demand
deposit balances in Statutory Liquidity Ratio(SLR) eligible Government securities/treasury bills
with maturity up to one year and hold maximum 25% in current and time/fixed deposits with
other scheduled commercial banks for operational purposes and liquidity management.
What are the scopes of activities of Payment Banks?
Payments banks will mainly deal in remittance services and accept deposits of up to Rs 1 lakh.
They will not lend to customers and will have to deploy their funds in government papers and
bank deposits.
The promoters minimum initial contribution to equity capital will have to be at least 40% for the
first five years.
They can issue ATM/debit cards but not credit cards.
They can carry out payments and remittance services through various channels.
Distribution of non-risk sharing simple financial products like mutual fund units and insurance
products, etc. is allowed.

Benefits of IPPB:
India post has a network of 154,939 post offices, the largest such network in the world. As of 31
March 2015, 90% of the post offices were located in rural Indiaon an average 8,354 people are
served by one post office, which covers 21.22 sq km.
IPPB has tremendous possibilities as it can bring millions of individuals and small businesses into
the formal banking channel by offering savings accounts of up to Rs100,000 and current accounts
with a special focus on micro, small and medium enterprises, small merchants, village
panchayats, self-help groups, etc.
It can also be the vehicle for the direct benefits transfer of social security payments of various
ministries and pay utility bills, beside taking care of payments of various central and state
governments and municipalities as well as colleges, universities and other educational
institutions.
It can also play a major role in remittancesboth domestic and cross-borderwith a special
focus on migrant labourers, low-income households and, finally, distribute third-party financial
products such as insurance, mutual funds, pension and credit products.
Challenges before IPPB:
IPPB cannot pay high interest on their deposits because they have to maintain 75% of their
deposits in government securities, where the interest would be about 7-8%. Since their cash
requirements would be highergiven the nature of their accountsthe remaining 25% cannot
fetch higher returns.
India Post has not been profitable for several years in a row, and in 2013-2014 lost USD 825
million USD. However, India Post developed an ambitious plan in November 2012 to equip all its
post offices with computer hardware, solar charging devices and network connectivity. To
embrace these new technologies, almost 740 million USD was invested, however, much remains
to be done. Ensuring that this IT modernization project is successfully completed and reduce
costs will be a major challenge.
Also, challenging will be to train the staff in the 130000 rural post offices to ensure they can
adequately use this equipment and offer high quality financial services.
How to make IPPB more competitive?
DoP has a network of 140,000 post offices in rural areas. On an average, a post office serves 8,100
persons six days a week. Such an extensive and intensive network gives it a unique advantage in
reaching the last mile to deliver any financial service. Therefore, IPPB should be allowed to
provide limited loans to its rural clients for meeting their productive needs.
If there were concerns about risk of default, the amount of the loan could be restricted to
Rs.50,000 or Rs.1 lakh as per case. There could be an appropriate conditionality for subsequent
loans to the same person.
IPPB will also have to deepen its understanding of the unique needs of base of pyramid (BOP)
consumers and develop products and customer experiences tailored to these needs. Technology
is, of course, going to be key to keeping costs low. The use of Aadhaar-linked authentication,
know-your-customer and e-sign and the proliferation of mobile/online payment systems hold
special promise for reducing the cost of delivery.

In short, an organization like India Post with access to the vast network of post offices should
have been considered not only as a payments bank, but also as a bank with limited credit
operations to address the national goal of financial inclusion.
Conclusion:
The governments objective of achieving 100% financial inclusion got a shot in the arm with the India
Post Payments Bank. This could be the proverbial game changer with regard to financial inclusion.
However, IPPB can make a new beginning only if it is run as a business entity and not a government
department. The key to the success of IPPB will also be its business plan and technology. The
technology will hold the key to the success of a payments bank. With its phenomenal reach across
India, IPPB can do wondersgeo-mapping every inch of the country and making every kirana store,
petrol pump, mandi its business correspondent, and usher in a revolution in the payments space when
the government is pushing hard for a digital economy.
13/12: Cyclone Vardah

Cyclone Vardah has brought Chennai to a standstill. It has also made landfall in several parts of Tamil
Nadu. The cyclone has also uprooted many trees and disrupted telecommunication in the state.
Vardah is a major cyclonic storm originating in the Bay of Bengal.

India was also affected by other major cyclones Roanu, Kyant and Nada this year.

Meaning of Vardah:
Vardah is the Arabic and Urdu word for rose. The name was provided by Pakistan in the
comprehensive nomenclature list for cyclones in the Arabian sea and Bay of Bengal.
How are cyclones named?
In September 2004, an international panel on tropical cyclones decided that countries from the region
would each put in names, which would be assigned to storms in the Bay of Bengal and Arabian Sea.
Eight countries India, Pakistan, Bangladesh, Maldives, Myanmar, Oman, Sri Lanka and Thailand
participated and came up with a list of 64 names.
In the event of a storm, the Regional Specialized Meteorological Centre, New Delhi, selects a
name from the list.
Why it is necessary to name cyclones?
The late origin of this naming system unlike storms in the Atlantic, which have been getting named
since 1953 was ostensibly to protect sensitivities in the ethnically diverse region.
The purpose of the move was also to make it easier for people easily to understand and remember
the tropical cyclone/hurricane in a region, thus to facilitate disaster risk awareness, preparedness,
management and reduction.
Guidelines for naming cyclones:
Citizens can submit names to the Director General of Meteorology, IMD,for consideration, but the
weather agency has strict rules for the selection process.
A name, for instance, should be short and readily understood when broadcast.
The names must also be neutral, not culturally sensitive and not convey some unintended and
potentially inflammatory meaning.
Furthermore, on the account of the death and destruction a storm in the Indian Ocean causes,
their names are retired after use, unlike those in the Atlantic and Eastern Pacific lists, which are
reused every few years.
Cyclone categories:
Category 1: Wind and gales of 90-125 kph, negligible house damage, some damage to trees and
crops.
Category 2: Destructive winds of 125-164 kph. Minor house damage, significant damage to trees,
crops and caravans, risk of power failure.
Category 3: Very destructive winds of 165-224 kph. Some roof and structural damage, some
caravans destroyed, power failure likely.
Category 4: Very destructive winds of 225-279 kph. Significant roofing loss and structural
damage, caravans destroyed, blown away, widespread power failures.
Category 5: Very destructive winds gusts of more than 280 kph. Extremely dangerous with
widespread destruction.

Difference between Hurricanes, Typhoons and Cyclones:
Hurricanes, typhoons, cyclones are all the same, just different names for tropical storms in different
parts of the world; Hurricane in the Atlantic, Typhoon in the Pacific and Cyclone in the Indian Ocean.
Impacts of cyclones in India:
India is highly vulnerable to natural hazards especially earthquakes, floods, drought, cyclones and
landslides. Studies indicate that natural disaster losses equate to up to 2% of Indias Gross Domestic
Product (GDP) and up to 12% of Central government revenue.
The cyclones that occur between Tropics of Cancer and Capricorn are known as Tropical Cyclones.
Tropical cyclones are weather systems in which winds equal or exceed gale force (minimum of
34 knot, i.e., 62 kmph).
Indian sub-continent is the worst affected region of the world, having a coast line of 7516 kms.
(5400 kms along the mainland, 132 kms in Lakshadweep and 1900 kms in Andaman and Nicobar
Islands) is exposed to nearly 10% of the worlds Tropical Cyclones.
There are 13 coastal states/UTs encompassing 84 coastal districts which are affected by cyclones.
Four States (Andhra Pradesh, Odisha, Tamil Nadu and West Bengal) and one UT (Pondicherry) on
the East Coast and One State (Gujarat) on the West Coast are more vulnerable to cyclone
disasters. 40% of the total population lives within 100 km of coastline.
Cyclones occur in the month of May-June and October-November, with primary peak in
November and secondary peak in May.

Why eastern coast of India is more vulnerable?
Although cyclones affect the entire coast of India the East Coast is more prone compared to the West
Coast. An analysis of the frequencies of cyclones on the East and West coasts of India during 1891-
2000 show that nearly 308 cyclones (out of which 103 were severe) affected the East Coast. During
the same period 48 tropical cyclones crossed the West Coast, of which 24 were severe cyclonic storms.
Out of the cyclones that develop in the Bay of Bengal, over 58% approach and cross the East
Coast in October and November. Only 25 % of the cyclones that develop over the Arabian Sea
approach the West Coast. In the pre-monsoon season, corresponding figures are 25% over
Arabian sea and 30% over Bay of Bengal.
According to the India Meteorological Department, this is because in addition to the storms that
originate in the southeast Bay of Bengal and the adjoining Andaman Sea, breakaway typhoons
over the Northwest Pacific move across the South China Sea into the Bay of Bengal, intensifying
into cyclones.
As the frequency of typhoons over the Northwest Pacific is about 35% of the global annual
average, the Bay of Bengal is affected. In contrast, Arabian Sea cyclones are mostly their own
formations and they also generally move north-west, away from Indias west coast.
Besides, the Arabian Sea is colder than the Bay of Bengal, which inhibits the formation and
intensification of the cyclonic system in the former. Warm sea surface temperature is an ideal
platform for cyclones.
There are three elements associated with cyclones which cause destruction during its occurrence.
These are:
1. Strong Winds/Squall: Cyclones are known to cause severe damage to infrastructure through high
speed winds. Very strong winds which accompany a cyclonic storm damages installations,
dwellings, communications systems, trees etc., resulting in loss of life and property. Gusts are
short but rapid bursts in wind speed are the main cause for damage. Squalls on the other hand,
are longer periods of increased wind speed and are generally associated with the bands of
thunderstorms that make up the spiral bands around the cyclone.
2. Torrential rains and inland flooding: Torrential rainfall (more than 30 cm/hour) associated with
cyclones is another major cause of damages. Unabated rain gives rise to unprecedented floods.
Rain water on top of the storm surge may add to the fury of the storm. Rain is a serious problem
for the people which become shelter less due to cyclone. Heavy rainfall from a cyclone is usually
spread over wide area and cause large scale soil erosion and weakening of embankments.
3. Storm Surge: A Storm surge can be defined as an abnormal rise of sea level near the coast caused
by a severe tropical cyclone; as a result of which sea water inundates low lying areas of coastal
regions drowning human beings and life stock, causes eroding beaches and embankments,
destroys vegetation and leads to reduction of soil fertility.
Although Tropical cyclones are known for destruction they cause, when they strike they also bestow
certain benefits to the climatic conditions of that area such as:
Relieve drought conditions.

Carry heat and energy away from the tropics and transport it towards temperate latitudes, thus
helps to maintain equilibrium in the Earths troposphere and

Maintain a relatively stable and warm temperature worldwide.
Management of Cyclones:
There are many structural and non-structural measures for effective disaster management of
cyclones. The structural measures include construction of cyclone shelters, construction of cyclone
resistant buildings, road links, culverts, bridges, canals, drains, saline embankments, surface water
tanks, communication and power transmission networks etc.
Non-structural measures like early warning dissemination systems, management of coastal zones,
awareness generation and disaster risk management and capacity building of all the stakeholders
involved. These measures are being adopted and tackled on State to State basis under National
Cyclone Risk Mitigation Project (NCRMP) being implemented through World Bank Assistance.
14/12: Revamping the Income Tax Appellate Tribunal

Summary:
The recent demonetisation move of the central government has increased the workload of income
tax officials in the country. Demonetisation was aimed at reducing the extent of black moneymoney
on which tax should be paid, but is not.
Demonetisation is the first step in the fight against black money in the country. The government seems
keen to bring in other stringent measures to address this menace.
Such stringent measures would either result in more people voluntarily paying taxes and assessment
volumes rising, or the income-tax department may improve its enforcement capacity to check tax
evasion. Either ways, the tax administration and adjudication infrastructure will face increased
workload. Additionally, this will increase the workload of Income Tax Appellate Tribunal (ITAI). Unless
they are well resourced, the governments noble initiatives will hit an implementation bottleneck.
About ITAI:
ITAT is a quasi judicial institution set up in January, 1941 and specializes in dealing with appeals under
the Direct Taxes Acts. It was set up by virtue of section 5A of the Income Tax Act, 1922.
Starting in 1941 with six Members constituting three Benches one each at Delhi, Kolkata
(Calcutta) and Mumbai (Bombay), the numbers of Benches have progressively increased and
presently ITAT has 63 Benches at 27 different stations covering almost all the cities having a seat
of the High Court.
The orders passed by the ITAT are final, an appeal lies to the High Court only if a substantial
question of law arises for determination.

Need for reforms:
More stringent actions by the income-tax department would translate into more appeals to ITAT.
If ITAT is not adequately resourced, this potential deluge of cases may affect its performance.
This is troublesome as an independent appeals mechanism is necessary to ensure impartial
decisions.
As of July 2016, ITAT had on an average about 880 cases pending per member. In the busier
benches (Mumbai and Delhi), the probability that a case will not be solved within one year of
filing in Mumbai is 80%, while in Delhi it is almost 95%.
The ITAT takes on an average 36-48 months to resolve a case. This compares favourably with the
five-six years taken on an average across the subordinate courts in the country.
Cases pertaining to assessments for undisclosed income (search and seizure, block assessment,
etc.) are common (12% of all hearings and 9% of rulings). These are the cases where the tax
department claims to have unearthed income which was not voluntarily disclosed for taxation.
The volume of cases is likely to increase if the government is serious about reducing tax evasion.
Also, there is no uniformity in solving cases by ITAI benches across the country. Cities with similar
numbers of benches and members exhibit very different performance levels.
Besides, since its establishment, ITAT is functioning more or less on similar lines except for
necessary consequential changes introduced on account of its expansion and extension of its
jurisdiction. There have been no fundamental changes either in the constitution or the
functioning of the Tribunal in the Income Tax Act, 1961.
How can ITATs performance be enhanced?
Commonly suggested remedies include increasing the number of judges or the number of
benches to deal with increased caseload.
Additionally, solutions to delays in ITAT lie in prioritizing and scheduling the workload properly.
Although ITAT is a specialized court, there are variations in the complexity and urgency of the
cases that come before it. Therefore, it may be useful to frame rules on how different types of
cases would be prioritized.
Qualitative aspects of rulings, factors influencing them and most frequently litigated subject-
matters will also be useful in deciding the policy strategy for improving Indias tax environment.
Conclusion:
Indian tax administration and adjudication needs urgent reforms. For this, a comprehensive
performance analysis of ITAI is necessary. Also, more studies should be conducted to identify the exact
institutional weaknesses in tax administration, improving which could help improve Indias abysmally
low ranking on the Paying Taxes parameter in the Ease of Doing Business Index, and ensuring that
citizens have access to an independent and impartial appeals mechanism.

15/12: Indias UNSC Bid: Is it different this time?

Summary:
During the 71 year history of the UN, Security Council reform has been a much demanded and debated
subject. The recently concluded United Nations General Assembly meeting has further revived this
topic.
Why UNSC reforms are required?
Global politics has changed a lot as regards

its power, structure, rules, and norms since
the formation of the UN. The world has
witnessed a redistribution of power and
emergence of new power centres, along
with a transformation from the era of
colonialism to that of post-colonial independent states. Existing membership and functioning of
the UNSC reflects the realities of a bygone era.
As a global institution to promote international peace and security, the UNSC is not responding
to changes taking place in the world. The only change hitherto has been an increase in the
number of non-permanent members in the UNSC from six to ten, that too as far back as 1965.
Another criticism is that that the permanent panel in UNSC lacks representation from Africa and
Latin America.
Previous attempts:
In 1992, a promising reform move was initiated in the form of a General Assembly Resolution, which
highlighted the three major criticisms raised as regards the Council lack of equitable representation,
unresponsiveness towards new political realities and domination of Western states.
In 1993, a General Assembly resolution established an Open-ended Working Group (OEWG) to

discuss SC reform. Most reform proposals revolved around the five core issues of membership
categories, the question of the veto held by the five permanent members, regional
representation, the size of an enlarged Council, and Council working methods.
However, even after negotiations for more than two decades, there exists a huge difference of
opinion among members on these issues.
Demands by various groups across the world:
Groups have formed to lobby for permanent positions on the UNSC or at least to make the council
more representative.
The G4Brazil, Germany, India and Japanwant to expand the Security Council to 25 members,
which would comprise an extra six permanent and four non-permanent members. The new
permanent seats would guarantee two places for Africa, two for Asia, one for Latin America and
the Caribbean (GULAC), and one for western Europe and other states.
The L.69 (Group of 42 developing countries) comprises 42 countries from Africa, Asia, Caribbean,
South America and Pacific and includes three of the four G-4 members (Brazil, India and South

Africa). Similar to the G-4, L.69 also argues for reform as a way towards greater accountability,
transparency, representation and legitimacy.
The African Group, comprising 54 states from five regions of the continent, is another prominent
advocate of reform. The coalition reflects the Ezulwini Consensus, the official position of the
African Union, which demands two permanent seats with veto power for the African continent.
The Uniting for Consensus (UfC) group led by Argentina, Mexico, Italy, Pakistan, and South Korea,
the Arab Group comprised of members of the Arab League and 10 countries from Africa, the
Organization of Islamic Conference (OIC), and Accountability, Coherence, and Transparency
(ACT), a cross-regional grouping of 27 countries, are the other leading constellations that have
proposed reforms consistent with their particular interests and preferences.
Why it is difficult to reform UNSC?
The UNs rules state that changing the composition of the P5 involves changing the UNs
chartermaking this, and other similar moves, difficult. To succeed, it would also require the
backing of two-thirds of the General Assembly including the current P5 and, as we have seen,
this in itself is a huge hurdle.
The organisation has, in terms of participation, been a huge success and its involvement in
international affairs does carry significant weight. But the divide between the General Assembly
and the Security Council is marked. GA delegates complain of a lack of transparency in the
Security Council and even the non-permanent members can find themselves literally locked out
when the P5 wishes to discuss matters alone.
Political will among the more senior states is also delaying the advancement of any of these plans
and problems unrelated to UN reform continue to cause friction among the rest of the UNs
members.
Three among the five permanent members of the Security Council are still against Council reform
that would entail a change in their present status. The possibility of changes in the positions of
the US and Russia are unlikely since they are in a state of relative decline. Since it is their current
status in the Council that provides them pre-eminence on issues related to international peace
and security, they are not expected to support any move that reduces their say in global politics.
It is also unrealistic to think that China would give up its present privileged status in the UN, even
as it seeks greater influence and presence in global politics as a rising power.
Plan B?
In 2004 at the behest of the then UN secretary general, Kofi Anan, the 16-member High Level Panel
On Threats, Challenges, and Change convened to produce a blueprint for Security Council reform. Two
options were proposed by the panel: one suggested adding six new permanent members without veto
power, with a further three non-permanent seats; the second would add eight seats, renewable every
four years, also without veto power and with one new non-permanent seat.
Another plan along similar lines, although bureaucratically more complex, came from a group
within the organisation known as Uniting for Consensus (formerly known as the Coffee Club).
This includes Italy, Spain, Turkey, South Korea, Mexico and Argentina and it has put forward
proposals which again seek a more representative UNSC.
In 2005, the group called for expansion of the non-permanent membership while retaining the
current permanent composition; there would also be no expansion of the veto. The additional

members would be elected by the General Assembly, with due regard to the contribution of
Members of the United Nations to the maintenance of international peace and security and to
the other purposes of the Organization, and also to equitable geographical distribution.
Within that, there would be six from African states, five from Asia, four from Latin American and
the Caribbean, three from western European and other states and two from eastern Europe.
The non-permanent members would be elected for two-year terms by their regions and there
would be the possibility of immediate re-election. This plan was refined in 2009, suggesting
further seats which could be occupied for an extended term of three to five years.
The benefit of this system would be that the new seats would be allocated by region, with the
actual state occupying the position decided by the regional group. Again while not reforming the
P5 it would give more security to the rotating group, providing longer terms in office, building up
confidence and institutional memory and therefore providing a better service regionally and
globally.
India and the UNSC:
The UNSC, created in the post-War context, doesnt actually reflect the changes that have occurred in
the international system after the end of the Cold War. In a quarter century, the global economic
architecture has undergone massive changes. The developing nations, including India, now play a
bigger role in international affairs. But within the UN, the five permanent veto-wielding members still
effectively take all the crucial decisions.
The Indian position is that this democracy deficit in the UN prevents effective multilateralism
in the global arena. The way the UNSC handled or failed to handle some of the recent crises
would underscore the soundness of the Indian position.
Take the examples of Libya and Syria. While the western nations are accused of distorting the
UNSC mandate in Libya, the Security Council failed to reach a consensus on how the Syrian crisis
may be resolved. This clearly points to a worsening institutional crisis within the UNSC.
Why India should be given a permanent seat in the council?
Indias demand for a permanent seat has to be looked into, duly considering the merits of the
case.
It is the worlds largest democracy and Asias third largest economy.
The Indian Army is the largest contributor to the UN peacekeeping mission since the inception of
the mission.
Indias foreign policy has historically been aligned with world peace, and not with conflicts.
As a permanent member of the UNSC it will be able to play a larger role concerning pressing
international issues.
Way ahead for India:
Given the consistency of the P5s positions in the past and the minimal progress towards reform during
the last two decades, there are three possible scenarios regarding Indias quest for permanent
membership in the Security Council.
First, India takes the leadership of reform calls and actively and relentlessly pushes other
countries in that direction. Its latent power, remarkable economic growth, rapidly increasing

defence capabilities, status as a nuclear weapons power, and contributions to UN peacekeeping

all give it the right and privilege to assume such a responsibility. However, looking at Indias
engagements with the UN combined with its growing indifference towards multilateralism in the
recent past, such a development is unlikely.
The second option is to push for Security Council reform without changing the current status of
veto power. Since having a seat without veto is almost similar to not having a place in the Council,
the likelihood of such a move from India is even less.
The final possible scenario is for India to accept the fact that, given the current pace and
momentum, Security Council reform is never going to happen and to consequently search for
alternatives to push the agenda of emerging powers. Given the miserable fate of such
alternatives, for example, BRICS and its uncertain future, this option would also be a great
gamble.
Way ahead:
On too many issues of global concern, the United Nations faces gridlock. The Security Council,
embodying as it does the post-war oligopoly in its permanent membership, desperately needs reform
to empower the wider world and to improve its effectiveness. But those with their feet under the
table are reluctant to give way.
The recent adoption of a UN General Assembly resolution to begin discussions on UN Security Council
reform has revived hopes of progress on a long-pending issue. Reform will need to address equitable
representation, categories of membership and veto power if the Council is to retain its legitimacy.
Conclusion:
Overall global influence is now pivoting towards Asia and away from the West, meaning the
composition of the UN Security Council reflects a post-World War II colonial system that is woefully
outdated but still powerful. If states do not see their grievances addressed, they may be minded to
take their quest for justice to their regional representatives. Should this happen, then the pressure to
reform the UNSC may decrease but such an eventuality could arguably diminish the status of the body
too. Perhaps this vista is what may herald a change. Meaningful reform of the Council to make it more
representative and democratic would strengthen the UN to address the challenges of a changing world
more effectively.
16/12: The Forest Rights Act (FRA), its Dilution and Tribals
Summary:
Ten years after the historic Forest Rights Act (FRA) was passed by the Indian lawmakers, only 3% of
villages or communities could secure their rights over forest resources which include land and the
produce from the forests and water, states the Citizens Report prepared by Community Forest Rights
Learning and Advocacy, a network of organisations working on securing rights for the forest dwellers
in the country.
The report reveals that some of the states with a significant percentage of forest-dwelling tribes
and communities have performed poorly in implementing these rights.

Background:
Conception and passage of

the Forest Rights Act was
the result of the decades
of struggles and sacrifices
of millions of tribals across
India, of their
organisations, of
numerous activists and
intellectuals working on
tribal issues, and because
of the commitment and
efforts of the Left parties.
About Forest Rights Act (FRA):
The act was passed in December 2006. It deals with the rights of forest-dwelling communities over
land and other resources. The Act grants legal recognition to the rights of traditional forest dwelling
communities, partially correcting the injustice caused by the forest laws.
Rights under the Act:
Title rights Ownership to land that is being farmed by tribals or forest dwellers subject to a
maximum of 4 hectares; ownership is only for land that is actually being cultivated by the
concerned family, meaning that no new lands are granted.
Use rights to minor forest produce (also including ownership), to grazing areas, to pastoralist
routes, etc.
Relief and development rights to rehabilitation in case of illegal eviction or forced displacement;
and to basic amenities, subject to restrictions for forest protection.
Forest management rights to protect forests and wildlife.
Eligibility:
Eligibility to get rights under the Act is confined to those who primarily reside in forests and who
depend on forests and forest land for a livelihood. Further, either the claimant must be a member of
the Scheduled Tribes scheduled in that area or must have been residing in the forest for 75 years.
Process of recognition of rights:
The Act provides that the gram sabha, or village assembly, will initially pass a resolution
recommending whose rights to which resources should be recognised.
This resolution is then screened and approved at the level of the sub-division (or taluka) and
subsequently at the district level.

The screening committees consist of three government officials (Forest, Revenue and Tribal
Welfare departments) and three elected members of the local body at that level. These
committees also hear appeals.
What are the main concerns now?
It is being alleged that some recent move by the centre have diluted the Act in several ways. These
include:
A series of legislation that undermine the rights and protections given to tribals in the FRA,
including the condition of free informed consent from gram sabhas for any government plans
to remove tribals from the forests and for the resettlement or rehabilitation package. The
requirement of public hearings and gram sabha consent has also been done away with for mid-
sized coal mines.
The amendments to the Mines and Minerals (Development and Regulation) Act, the
Compensatory Afforestation Fund Act and a host of amendments to the Rules to the FRA also
undermine the FRA.
The government has declared its commitment to ensuring ease of business, which translates
into clearing all private sector-sponsored projects in tribal-inhabited forest areas.
The National Board for Wildlife, with the Prime Minister as Chairperson, was reconstituted,
slashing the number of independent experts from 15 members to three, packing it with
subservient officials.
Also, there is the deliberate freeze of the actual implementation of the FRA. Neither individual
pattas nor pattas for community forest resources are being given.
Few government orders have also been introduced in some states to subvert the FRA:
In Telangana, in total violation of the FRA, the government has illegalised traditional methods of
forest land cultivation.
The Jharkhand government has brought amendments to the Chotanagpur and also the Santhal
Pargana Tenancy Acts which eliminate rights of gram sabhas and permit tribal land to be taken
over by corporates, real estate players, private educational and medical institutions in the name
of development, without tribal consent.
In Maharashtra the government has issued a notification of Village Rules which gives all rights
of forest management to government-promoted committees as opposed to the gram sabha. This
is the law-based offensive.
The government should recognise the role played in the FRAs meagre implementation by the forest
bureaucracys resistance as well as the acute lack of awareness of FRAs community rights provisions
in State administrations and forest communities. In almost all States, the Forest Department has either
appropriated or been given effective control over the FRAs rights recognition process.
This has created a situation where the officials controlling the implementation of the law often
have the strongest interest in its non-implementation, especially the community forest rights
provisions, which dilute or challenge the powers of the forest department.

The government should confront the forest bureaucracy and make it clear that any obstruction
on their part is unacceptable. The little progress that has been made in implementation so far
has been due to close coordination between tribal departments, district administrations and civil
society.
There is also a clear need to strengthen the nodal tribal departments, provide clear instructions
to the State and district administrations, and encourage civil society actors. Without a strong
political will, this historical transformation is unlikely to take place.
Besides, any law by the government should be brought in only after wide discussions.
Conclusion:
On the tenth anniversary of the historic passage of the FRA, tribal resistance is growing all over the
country to defend their rights under FRA and other related issues. Given this, it is time the government
reviewed the law and also looked at the objections raised when it was first tabled as a bill. In spite of
its inadequacies, there can be little doubt that the Forest Rights Act (FRA) stands as a powerful
instrument to protect the rights of tribal communities. It is a hindrance to corporate interests to their
free loot and plunder of Indias mineral resources, its forests, its water.
17/12: The Rights of Persons with Disabilities Bill Rights Issue

Summary:
By passing the Rights of Persons with Disabilities Bill, the Parliament has adopted a radically
transformative piece of legislation that addresses the concerns of arguably the most marginalised
section of Indian society.
Background:
The World Bank estimates that 15% of the worlds population is affected by one disability or another.
Exclusion of disabled persons from the labour market leads to an annual loss of approximately 3-7%
of the GDP. According to Census 2011, India is home to 26.8 million people with disabilities and that
is a huge underestimation.
About the new Bill:
The new law, when enacted, will repeal the old Disability Act, 1995, and usher the Indian disability
movement into a new age, where disability itself will be defined based on an evolving and dynamic
concept.
It increases the number of recognised disabilities from 7 to 21. With this, the official count will
obviously also rise and as per conservative estimates, that figure could be as high as 70-100
million.
It lays down provisions to allow the central government to notify any other condition as a
disability. Now individuals with at least 40% of a disability are also entitled to benefits such as
reservations in education and employment, preference in government schemes and others.
The bill sets the government a two-year deadline to ensure persons with disability get barrier-
free access in all kinds of physical infrastructure and transport systems.

It recognises the need for reservation for them in promotion and makes special mention of the
rights of disabled women and children. It defines many terms vague in previous versions,
including what constitutes discrimination.
A penalty will also be slapped for violating the rules of the Act. The 1995 Act did not have any
such penal provision. However, 2014 Bill had made violation of any provision of the Act
punishable with a jail term of up to 6 months, and/or a fine of Rs 10,000.
Whats missing in the

new Bill?
The Bill strangely

makes the clauses
on non-
discrimination in
employment
mandatory only in
government
establishments.
The Bill continues
with the 1995 acts
provision of having
a chief
commissioner and
state commissioners. Neither the commissioners nor any of the members of their advisory
committees are required to be Persons with Disabilities.
Despite a Supreme Court judgment in 2013 that reservations should be decided on the basis of
the total number of vacancies in a particular cadre, rather than the posts identified by the
government to be filled by persons with benchmark disabilities, the bill has stuck to the latter.
Also, like it does for the institutions wanting to be registered as ones for PWDs, the bill does not
specify the time frame for a certificate of disability to be issued. This gives PWDs no way to
address the trials and tribulations they face when tackling the bureaucracy in receiving what has
been their right for years now.
The amended bill does define public buildings and public facilities and services towards making
such infrastructure accessible to PWDs in a barrier-free manner. However, for all the benefits
that this bill strives to provide, basic issues of accessibility, including to information and
communication technology, and certification of disability remain a distant unfulfilled dream in
the absence of any political will.
Way ahead:
Considering the sociocultural prejudices against them, and the inability, rather the refusal, to keep in
mind the needs of PWDs, this bill, as was the fate of the 1995 act, will go only so far to ensure for them
the rights that should have been a given. Till they are treated as second-class citizens, and not
recognised as capable individuals in their own right, India will continue to be an unjust and inequitable
society.

Conclusion:
It is time to leverage this vast human capital. It is hoped that the proposed new law, a robust rights-
based legislation with a strong institutional mechanism, shall ensure enjoyment of rights by persons
with disabilities on an equal basis with the non-disabled citizens of India. The disability sector has been
waiting for this law patiently for the last several years. The new law would be a game changer if the
above mentioned concerns are addressed.
19/12: Agriculture a fertile ground for digitization

Summary:
While agricultures share in Indias economy has progressively declined to less than 15% due to high
growth rates of industrial and services sector, the sectors importance in Indias social and economic
fabric goes well beyond this indicator.
Why a strong agricultural sector is important for

Indias growth?
Nearly three-quarters of Indian families are

directly or indirectly dependent on agriculture.
Nearly 70% of Indias poor depend on rural
income, especially on agriculture.
To feed the currently undernourished population, India would require a 3-4% increase in food
supply. With the population expected to grow even further, the strain on the sector is likely to
grow more in the coming years.
Also, it constitutes 10% of the overall exports.
Besides, Indias food security also is dependent on agriculture.
Why India is called a global agricultural powerhouse?
India is the largest producer of milk in the world. It is one of the leading producers in pulses, spices
and has worlds largest cattle herd. It has also largest area under wheat, rice and cotton. The country
is amongst top producers in the production of rice, wheat, cotton, sugarcane, farmed fish, sheep &
goat meat, fruit, vegetables and tea. The country has some 195 m ha under cultivation of which some
63% are rainfed (roughly 125m ha) while 37% are irrigated (70m ha).
Why the demand is increasing?
Driven by a growing population, in particular an expanding middle class with higher incomes, the
sector has seen a sustained increase in demand. Also, rising incomes have lead to diet diversification
away from staple grains and towards higher-cost foods like poultry, fruits and vegetables, and dairy
products.
Challenges faced by Indias agricultural sector:
Key challenges faced by the Indian agriculture are the need to increase productivity by leveraging
technology-especially for high yielding and resistant variety seeds and efficient utilization of

water, adapt latest IT to increase resilience to nature by phasing sowing, watering and harvesting
and to increase the price benefits to the farmer by providing timely market information.
Also, rising incomes in the country have driven higher consumption of edible oil. While India is
one of the largest producers of oilseeds in the world, it imports around 55-60% of domestic edible
oil consumption requirements. This poses a major challenge as high import dependence means
an uncertainty in supply and potential for significant variability in prices.
At the same time, multiple other issues, such as double cropping, lack of crop rotation, lack of
time for soil recreation, are putting further pressure on fertility and yields.
How technology can help here?
This is where the use of technology can be of immense help. Technologies such as automation,
decision support system and agriculture robots are being widely adopted in the sector globally.
Farmers are using the Internet of Things and smart sensors to get access to valuable information like
soil moisture, nutrient levels, temperature of produce in storage and status of farming equipment.
The sector is also ripe for the use of big data analytics and artificial intelligence, technologies that have
been deployed successfully in various sectors across the globe.
The digitization and use of technology in agriculture has, so far, been taking place in confined
application fields. The logical step for the sector, especially in India, would be to build an all-inclusive
digital platform.
An inclusive platform will be able to provide end-to-end services for farmersfrom selecting
crops, optimising plantation timings, seeding and fertilization rates based on plants actual needs
and regulatory requirements and limits.
All the data collected during a crops cycle can be compared with other farmers who grow the
same crop in similar conditions. Lessons learnt from one field can be applied automatically to
another to maximize output.
Such an approach can help to improve the yield of major broad-acre crops by between 20-30%.
Other benefits associated with such an inclusive digital platform:
Establishing such a digital platform will not only help improve yields and meet the growing demand, it
will also be a game changer for the sector:
Firstly, it will help to track produce from farm to the table. In the process, it will reduce wastage
in the value chaina huge issue in India currentlyand improve food safety. Technology can
help detect pathogens and allergens before they reach consumers.
It can also help address the price discovery issue. The current wholesale market format suffers
from a transparency challenge. With no data on volumes, prevailing prices or inventory levels,
there is little information for buyers or sellers to make informed decisions. This information gap
is a barrier to the entry of new players and, hence, increased competition and better price
discovery.
Finally, it can also help trigger an uberization of the sector by bringing farmers in touch with
profitable customers and help build sustainable partnerships to improve farming productivity.

Conclusion:
Therefore, a productive, competitive, diversified and sustainable agricultural sector will need to
emerge at an accelerated pace for Indias growth. Policy makers will thus need to initiate and/or
conclude policy actions and public programs to shift the sector away from the existing policy and
institutional regime that appears to be no longer viable and build a solid foundation for a much more
productive, internationally competitive, and diversified agricultural sector.
20/12: The unmaking of Parliament

Summary:
Disruptions have become an endemic feature of the functioning of the Indian Parliament. This has led
to widespread public outcry that has focused on two elements first, the waste of taxpayers money
on a perpetually disrupted and consequently, non-functioning Parliament; second, the legislative
paralysis that has stultified governance. However, little attention has been paid to what the underlying
causes for such disruptions are.
Most of the discussion surrounding disruptions revolve around a few issueshow the Speaker handles
the disrupters, how much is the cost to the exchequer in terms of losses and why the government is
unable to manage the floor and coordinate properly with Opposition members. There is also a view
that this is business as usual for any party in the Opposition since it gives them the excuse to play to
the galleries. There is a lot of chest beating about the inability of the ruling party to do proper floor
management or build consensus across parties on important issues.
Who gains the most due to these disruptions?
Conventional wisdom says it is the Opposition which

gains because it can grand stand on issues to grab
voter attention, not let crucial bills get passed and
force the government to take action (or not) on certain issues. The government and the Opposition
generally blame each other for the stalemate, each pointing to the adamant attitude of the other.
But is that really the case? In India, the executive has the upper hand in deciding the timing of a
Parliamentary session and the agenda of a session. The legislature, by abdicating its responsibilities of
oversight and representation, actually plays into the hand of the executive.
Then, what are the main reason behind disruptions?
One of the problems pointed out by experts is the lack of avenues for the Opposition to either force
the government to convene a parliamentary session or set the agenda of Parliament (the government
decides the bills it wants to introduce; the schedule of a day in the Lok Sabha is thereafter decided by
the Business Advisory Committee whose members represent all major political parties).
Also, the increase in the number of political parties and the challenge of coalition politics since the
1980s has diversified demands and competing interests. During the years of one-party majority
governments, house management was comparatively easy and primarily the task of the minister for
parliamentary affairs. With the increase in representation of other political partiesthe 16th Lok
Sabha represents 37 parties, a jump from the first Lok Sabha where there were 27 partiesand fall in

the number of treasury members, house management became a shared responsibility. Time allocation
for debates on legislation and speeches on other issues is decided as per party strength. The increase
in the number of parties has adversely impacted the time allotted to each party to represent its
interests, aggravated by the decrease in the number of annual sittings of Parliament.
What the rules say?
The Rules of the Lok Sabha and the Rajya Sabha instruct all MPs to:
Not interrupt any member while he or she is speaking, by disorderly expressions or noises or in
any other disorderly manner.
Not pass through, between the Chair and any member, while he or she is speaking.
Not leave the House when the Speaker is addressing the House.
Maintain silence when not speaking in the House.
Not obstruct proceedings or interrupt and to avoid making running commentaries, when another
member is speaking.
Not shout slogans in the House.
Not tear off documents in the House in protest.
Not display flags, emblems or any exhibits in the House.
Not sit or stand with their back towards the Chair.
Not approach the Chair personally in the House, but to, instead, send chits to the officers at the
Table, if necessary.
Role of speaker and chairman in preventing disruptions:
To curb such disruptions and deter MPs from indulging in conduct that causes such disruptions, the
Speaker of the Lok Sabha and the Chairman of the Rajya Sabha have also been vested with certain
disciplinary powers under the Lok Sabha and the Rajya Sabha Rules respectively. These powers allow
the Speaker and the Chairman to either impose minor penalties such as naming of MPs within official
records, or major penalties that require the members engaging in disorderly conduct to immediately
withdraw from the precinct of the House for the remainder of the days sitting.
The members, who persistently abuse parliamentary rules, disregard the authority of the Speaker
or the Chairman, and wilfully obstruct the business thereof, are also liable for suspension from
the service of the House for the remainder of the session.
In addition to these, Rule 374A of the Lok Sabha Rules also allows the Speaker to automatically
suspend certain members of the Lok Sabha, who instigate grave disorder by coming into the well
of the House, abuse the Lok Sabha Rules persistently, or wilfully obstruct the business of the
House by shouting slogans.
To initiate automatic suspension, the Speaker is required to identify the relevant member and
name him before the House. Thereafter, the member stands suspended from the service of the
House for five consecutive sittings or the remainder of the session, whichever is less.
What can be done now?
The way Parliament decides its daily agenda gives an indication of what can be done. There is a
weekly meeting of the all-party Business Advisory Committee to decide the agenda for the
following week, and this committee also meets every day to fix next days plan. The decision is

made through consensus. This means that every party has a veto on any topic suggested for
inclusion in the list of business. Even if the process is modified to a majority decision, the
government can block any topic as it has the highest number of MPs. The government should
utilize this tool effectively.
Any motion or discussion has to be taken up if a certain number of MPs gives a written notice.
The no-confidence motion requires just 50 MPs (slightly less than 10% of the strength of the
House) to be admitted. The threshold can be increased, and suitable thresholds fixed for
discussions without a vote and voting motions. For example, there could be a new rule for
discussion if a certain percentage of the strength of the House (say 20%) asks for it, and a voting
motion if a certain percentage of MPs (say 30%) gives a written notice.
Another approach is to guarantee some time for the opposition. The British Parliament allocates
20 days a year when the agenda is decided by the opposition. It also requires Parliament to meet
more frequently. In the 1950s, the Indian Parliament met for 120-140 days every year; now the
number ranges between 60 and 70 days.
Another possible solution is to have Parliament meet round-the-year, Monday to Friday, instead
of the three sessions for which it meets, as is the current practice. Episodic meetings are bound
to create episodes, so to speak. Parliamentarians want to appropriate time to raise issues they
think are important. These are not necessarily the priorities of the government, which might be
keener on creating a legislative framework for executing its policies in the limited time it has
than, say, discussing a railway accident.
It is this divergence of views which lead to deadlocks. Britain, whose democratic traditions India
follows to a great extent, has five 12-month sessions over every Parliament, which, from 2010,
begins and ends in the spring. The Speaker lays out the entire annual calendar as soon as a new
government is formed, marking the periods of recesses, the hours of meetings on every day of
the week, and on which day the Opposition gets the preference to raise issues.
Conclusion:
If India wishes to hold on to her democratic credentials, parliamentarians must recognise that the task
of representing the opinions, interests and needs of citizens is their paramount responsibility. Nehru,
in a famous speech he made in the Lok Sabha on March 28, 1957, had said that historians will not pay
much attention to the time expended on speeches, or the number of questions asked and answered
in Parliament. They will be interested in the deeper things that go into the making of a nation. There
is no higher responsibility than to be a member of this sovereign body responsible for the fate of vast
numbers of human beings. Whether we are worthy of it or not is another matter.
Also, a parliamentary government is described as government by discussion. Therefore, by allowing

for wider and more impactful participation in parliament, it is possible that some of the causes of
disruptions would get addressed. Simultaneously, it may improve the quality of debates if members
with more expertise on a given subject are allowed to speak longer in the House. All of these measures
would have to be coupled with other capacity building activities such as providing office space to all
MPs, access to institutional research support and quality training programmes in order to both deepen
and broaden our democratic polity.

21/12: Iron jet stream detected in Earths outer core

Jet streams are typically associated with weather patterns, storms and the changing of the seasons
but they dont just appear in the atmosphere. The European Space Agency has discovered a jet
stream deep below the surface of the Earth, and its moving at increased speeds. This is a remarkable
new feature in Earths molten outer core.
Scientists describe this jet stream as a fast-flowing river of liquid iron that is surging westwards
under Alaska and Siberia.
How was it discovered?
The discovery was made by researchers using Esas Swarm satellites. Launched in 2013, the trio of
satellites is used to measure the different magnetic fields that stem from Earths core, mantle, crust,
oceans, ionosphere and magnetosphere.
About swarm mission:
Swarm is the fifth Earth Explorer mission approved in ESAs

Living Planet Programme. The objective of the Swarm mission
is to provide the best-ever survey of the geomagnetic
field and its temporal evolution as well as the electric field in
the atmosphere using a constellation of 3 identical satellites
carrying sophisticated magnetometers and electric field
instruments.
Swarms data help scientists understand better how the field is generated, and why it appears to
be weakening.
All three satellites in the Swarm constellation are identical. Their super-sensitive instrumentation
acts rather like a 3D compass, enabling the precise strength and direction of the magnetic field
to be determined all around the globe.
The trios construction was led by the Astrium company, predominantly in Germany and the UK.
Engineers have had to ensure the magnetism generated by the satellites own internal electronics
does not obscure the missions subtle scientific measurements.
This has meant putting the instruments on the end of a long boom to keep them separate from
the main spacecraft body. It has given Swarm a very distinctive look like giant mechanical rats
with long tails.
Uses of swarm data:
The major part of Earths global magnetic field is generated by convection of molten iron within the
planets outer liquid core, but there are other components that contribute to the overall signal. These
include the magnetism retained in rocks, and there is even an effect derived from the movement of
salt water ocean currents. Swarm will attempt to tease apart these various factors, to get a clearer
picture of the fields true origins and its changing behaviour.

Other uses of the Swarm data will embrace investigations of the electrical environment of the high
atmosphere and the way this interacts with the solar wind the continuous stream of charged
particles billowing away from the Sun.
Existence of earths magnetic field:
Earths magnetic field behaves like a bar magnet with a north pole and south pole with magnetic field
lines stretching into space, creating a bubble known as the magnetosphere. On the day side of Earth,
the solar wind compresses the magnetosphere and charged particles stream around the planet and
follow field lines into the poles, spawning the colorful auroras. On the side of Earth facing away from
the sun, the magnetosphere is blown out like the tail of a comet.
The magnetic field exists because of an ocean of superheated, swirling liquid iron that makes up
the outer core. Like a spinning conductor in a bicycle dynamo, this moving iron creates electrical
currents, which in turn generate our continuously changing magnetic field.
But magnetism from rocks in the Earths crust and from the circulation of the oceans also
contribute to the magnetic field, and solar activity is also an influence in the ionosphere and
magnetosphere, the protective bubble around the planet.
Why scientists are interested

in studying earths magnetic
field?
Earths core is buried under

about 1,900 miles (3,000
kilometers) of rock, so
scientists study it indirectly by
measuring the planets
magnetic field. For instance,
changes in the magnetic field
suggested that liquid iron in the
outer core moves faster in the
Northern Hemisphere, largely
beneath Alaska and Siberia.
The magnetic field

appears to be weakening,
according to researchers,
and the magnetic poles
have been drifting over the last few decades, leading some experts to suggest Earth is on the
verge of a pole reversal.
The magnetic reversal has occurred, on average, about once every 250,000 years. But research
shows the last time it happened was 780,000 years ago.
Scientists want to study the reversals potential impact on modern humans, especially high-tech
electrical grids, navigation and communications.

How jet stream was discovered?
The jet stream, located roughly 3,000 km (1,860 miles) below the Earths surface a region where
the molten outer core meets the solid mantle is estimated to be over 260 miles wide. Its speed of
over 25 miles a year is three times faster than the typical speed of liquid in the outer core and
hundreds of thousands of times faster than the speed at which Earths tectonic plates move.
A pattern of flux patches in the northern hemisphere, mostly under Alaska and Siberia, led to the
discovery of jet stream in the core. These high-latitude flux patches are like bright spots in the
magnetic field and they make it easy to see changes in the field. Swarm reveals that these changes are
actually a jet stream moving at more than 25 miles a year three times faster than typical outer-core
speeds and hundreds of thousands of times faster than Earths tectonic plates move.
Scientists explain it as acceleration in a band of core fluid circling the pole, like the jet stream in the
atmosphere.
22/12: Ending the Manipur blockade

Summary:
It has been more than one month since the blockade of the national highways leading to the Manipur
valley, called by the United Naga Council (UNC). This has severely affected life in the State, with
shortages and escalating costs of essential supplies such as fuel and food, even as demonetisation has
exacerbated problems.
Manipur may be a small state with a population of just over 25 lakh, but the divide between the
people living in the valley and the hills is so wide that not a year goes by without bandhs and
other protests over several disagreements. Imphal valley is predominantly inhabited by
the Meiteis, and the hills are predominantly inhabited by the Nagas and Kukis.
Immediate cause for the present crisis:
The blockade is in place to oppose the creation

of new districts by the state government.
According to the government, the decision for
formation of seven new districts was taken for
administrative convenience and to enable the
state government take up development works
effectively even in the remote and
underdeveloped parts of the state.
Background:
The state government issued a gazette notification for the creation of seven new districts by
bifurcating seven (of a total of nine) districts. This decision had as much to do with long-pending
demands in particular, for a new Kuki-majority district to be carved out of the larger Senapati hill
district as with easing administrative access to far-flung areas from the district headquarters.

Why the UNC is opposing this move?
While residents and groups in the new districts have welcomed the decision, the UNC has protested,
alleging that areas with a Naga population have been divided and that the lack of consultation is a
violation of commitments made by both the Centre and the State in various memoranda of
understanding.
While better administrative management of the seven new districts should be feasible, the
Manipuri Nagas of the existing hill districts of Tamenglong, Ukhrul, Senapati and Chandel feel
that some of the new smaller districts would be under greater political control of the Manipur
state administration at Imphal.
There is also a foreboding among the Nagas that non-Naga tribes like Kukis would eventually
dominate in districts like Kangpokpi where presently there is a coexistence of Kukis, Nagas and
the Meiteis.
The UNC also claims that the creation of new districts in the Naga dominated hill areas will
encroach upon and divide the traditional land holdings of Naga tribes.
Besides, the government has not consulted the Hill Area Committees before taking the decision.
The Hill Area Committees are formed to protect the rights of hill people, and under Article 371(C)
of Constitution, must be consulted on matters relating to tribal people.
Why the centre should intervene?
The state of turmoil in Manipur appears to have become a recurrent phenomenon. About a year ago,
serious disturbances affecting public order arose after the Manipur Assembly hurriedly passed three
controversial bills on August 31, 2015. These related to compulsory registration of non-Manipuris,
non-alienation of their land rights, and registration of employees of shops and establishments in the
Imphal Valley. These were passed without prior consideration and vetting by the members belonging
to the hill constituencies and hill councils. These bills, deemed to be negatively affecting the interests
of tribals and violative of the afore-mentioned constitutional provisions, had triggered a huge reaction
in the hill districts and Churachanpur. These three bills did not finally get Presidential accent, and
perforce had to be reverted back by the Union Home Ministry (MHA) to the state government for
reconsideration. As in the case of the creation of seven new districts, the state government`s
unilateral and non-consensual action triggered the earlier crisis as well.
How the situation is affecting the citizens?
The UNC blockade has been causing economic distress with prices of essential commodities including
fuel and drugs increasing substantially. The impact of demonetization and scarcity of currency is also
a factor contributing to public distress.
In the existing politico-security milieu of north-eastern states and in particular the India-Myanmar
border region which has experienced depredations by the NSCN-Khaplang group, such non-
consensual actions by the state executive authorities cannot but be detrimental to India`s security
interests. Though the anti-national insurgent Meitei groups drawing support in the Imphal Valley

region seem to be lying low currently as a result of counter action by the state police and central
paramilitary forces, political unrest is detrimental to the overall security situation in Manipur.
The Union government has a residuary responsibility to assist in turning around the present
situation. While a direct assumption of executive responsibility by the Union government may
not be warranted, a more proactive role of the Governor at New Delhi`s behest, may be justifiably
required. The Constitution has adequate scope for this purpose under its Seventh schedule and
Article 371 C, without impinging on the autonomy of the state.
MHA may simultaneously use the instrumentality of the state governor for suitable overview and
to ensure that the consultative process necessary with the hill councils is mandatorily followed
within the existing constitutional framework.
Way ahead:
Counter-blockades have been called by other groups in the state in response to the blockades by UNC.
There has been violence both in the hills and in the valley. The State government has sought the
Centres assistance to end the blockade, given that New Delhi has been in peace talks with the National
Socialist Council of Nagalim (Isak-Muivah) group that supports the UNC. While the Centre has sent
paramilitary forces to both Nagaland and Manipur, the inaction in clearing the blockade of the national
highways is puzzling.
Government officials have been in talks with tribal groups over the past few days. Meitei and tribal
groups too have reached out to each other in search of a resolution. Officials believe the situation is
likely to ease. However, the UNC has said it will not call off its economic blockade; however, it has
been holding talks with different sections of Naga society to chalk out its strategy.
Conclusion:
Efforts to impose a political solution through blockades that cut arterial routes supplying essential
goods to various areas of Manipur are a cynical ploy. Such action heightens ethnic polarisation and
threatens, once again, the fragile peace in the State. Ideally there should be a dialogue that involves
all major stakeholders the State government, groups that support redistricting, the UNC and the
Centre. But first, there should be zero tolerance towards all such blockades.
The ongoing crisis must also be seen against the backdrop of a new political scenario wherein new
players are seeking to expand their areas of influence while old warhorses struggle to hold on to their
positions.
23/12: Boosting Indian software products

Summary:
The government recently issued the draft of first ever National Software Policy with an aim to increase
share of Indian software products in global market by 10 fold to estimated $148 billion and create
employment opportunity for 3.5 million people by 2025.

The National Policy on Software Products visualizes the countrys rise of India as a leading global
player in creation, production and supply of innovative software.
Background:
The software product industry is estimated to be $411 billion

globally today and is expected to reach around $1 trillion by
2025. However, in India the software product industry is still
in its infancy stage. As per the estimates, the Indian software
product industry accounts for 1.48% of global market. The
total revenue of software product industry in India is $6.1
billion, out of which $2 billion is from exports.
Why a new policy in this regard was necessary?
Indias first software policy of 1986 resulted in the Software Technology Park (STP) scheme in 1991.
Undoubtedly, the policy was highly successful, with the information technology (IT) industry today
accounting for more than 9% of the countrys gross domestic product (GDP). However, the past few
years have seen a serious decline in IT sector growth, owing to the rapid, global transformation in the
technology and software industries.
Despite diminishing growth, even after 25 years, the old software policy (1.0) of 1986 still
prevails, with its focus on IT services. Indias IT sector is strong enough to face changing
technology challenges. But failure to capitalize on the capability built in last quarter century can
have serious consequences.
In order to address the relevant global strategic paradigm shifts, a new Software policy is needed,
with a product focus.
Highlights of the new policy:
The new policy aims to strive for a tenfold increase in share of the global software product market by
2025 by promoting easy access to local domestic/international market for software product.
The policy aims to create conducive environment for creation of 10,000 technology start-ups to
develop software products that are globally competitive and thereby generating a direct and in-
direct employment for 3.5 million persons.
The policy targets to achieve a goal of creation of 1,000,000 jobs by 2017, and additional
2,500,000 by 2025.
According to the draft policy, the government has promised that it will create an enabling
framework for inclusion of Indian software product in government procurement and promote
their usage in strategic sectors like defence, atomic energy, space, railways, telecommunication,
power and healthcare etc.
Among various measures, the government aims to leverage the start-up India initiative under the
proposed policy to ensure ease of business and to address concerns that may be specific to the
software product industry through an Inter-Ministerial Coordination Group.
The policy identifies 10 proactive strategic action areas for the development of the product
ecosystem. The main ones among them are ease of business, funding, research and
development, domestic demand boosters and frictionless trade and tax regimes.

Concerns raised over the new draft policy:
The policy does not clearly define software products as goods or services and does little to give clarity
on Intellectual Property Rights and also does not specify the incentives that the software startups will
get for government procurement.
The government however says the policy is only a statement of intent and too much specification can
hurt future innovation in the industry.
What else needs to be done to boost the software sector in the country?
Ease of doing business is essential. Numerous regulatory compliances can lead to unintended
oversights. A single repository of all applicable laws, compliances and their associated processes
would serve better.
A support framework for product development is required, as products upgrade or even relaunch
for long-term sustainability.
For undergoing testing and evaluation, investments in test beds is critical. In-house investments
can be steep, and shared resources supported by the government should be the favoured
approach.
The principles guiding tech transfer and licensing have undergone major shifts because of the
Internet, and Indian companies should be prepared to enter into contracts under these new
paradigms.
New technologies have led to standards and patent rules which are still nebulous to many
ecosystem players, and it requires a high degree of sensitization. Hence, platforms need to be
created to facilitate such discussions to also include interoperability, integration, scalability,
cybersecurity, and provide assistance in building global partnerships and access to global best
practices.
The talent requirement of product companies is unique. Future-ready products are expected to
be developed based on the mere articulation of needs and specifications. Talent accelerator
programmes in partnership with industry will help create industry-ready professionals from a
wide-ranging resource pool of engineers and other graduates.
In addition to the ubiquitous need for tech skills in high-end technologies, the need for country-
specific language skills must also be emphasized. Strong business communication is an essential
prerequisite and its deficit has an adverse impact on growth.
The software products policy should amplify the governments start-up initiatives, not just
replicate them for software product start-ups. For instance, a registry of software product start-
ups being supported under various programs can be created (voluntarily); they can then be
mentored in a targeted manner. Furthermore, incubators and accelerators need to be set up in
other geographies to provide greater market accessibility to start-ups.
Also, the support schemes should not be restricted to product start-ups alone, but structured to
benefit the product segment as a whole. Products require upgrades, new releases and
technology changes almost every other year, as a rule. Heavy investment in R&D creates a dire
need for a targeted scheme that will incentivize companies to develop new products.
Emerging Indian products require new geographies to build scale to get brand positioning right.
An organization which will function like an export promotion council, but exclusively for products
and innovative technologies, is a must. And it would be beneficial to set up helpdesks in Indian

embassies/high commissions which would function as advisers on local laws and market
information.
Way ahead:
In recent years, there is a shift in competitive advantage towards innovation. One can easily map here
the conditions before the launch of Startup India Policy 2015. A mass of new age software product
start-ups has emerged, touching a wide array of industries.
Advanced and specialized factor resources are emerging from software product development in
the captive offshore centres, R&D centres of multinational companies or outsourced product
development vendors, across all major IT clusters in the country.
The final policy should be swiftly announced. Further, it is important to leverage policy through
multiple threads focused on defined actionables. It could be: a) immediate action item list; b)
ecosystem building programs; c) segment-specific packages; and lastly d) incentive schemes. For
example, the SaaS-based product segment needs early support in the form of a booster package
that solves their multiple problems.
Conclusion:
India is third in terms of the number of tech start-ups. We have more than a 50% share in outsourcing,
but in software product exports, we feature among the also-rans. Mobile penetration, demographic
dividend and our mastery of the offshore development model can catapult the nation forwardif we
harness the next wave of growth.
24/12: Chinas First Cyber Security Law

Summary:
In line with President Xi Jinpings concept of an overall national security outlook, China recently
brought its first National Cyber Security Law. This marks another step in the direction of increased
oversight over the use of internet in China. China has justified its move as the objective need for
national security considering its huge IT infrastructure and vulnerabilities associated.
Background:
Cyber law is a recent phenomenon at the level of governance, both in

China, and globally. The need for cyber laws to provide a regulatory
legal framework has been felt in the last decade with the onset of the
Internet revolution, and its deep penetration into all aspects of the
economy, society and governance of China.
The law was required for the following reasons:
Cyber security is of critical concern to the Chinese leadership with regard to its impact on social
stability, political control and national development in China. There are frequent complaints of
network intrusions and cyber attacks in China posing threats to the domestic critical information
infrastructure.

There are concerns also over the use of ICT (Information Communication Technology) for terror
activities and anti establishment activities, particularly in the Xinjiang province of China.
Other important ICT areas like cloud computing, big data, new technology and application
development are making the cyber security environment more complex in China. There is also
concern over illegal acquisition and disclosure of personal information, concern over
infringement of intellectual property rights and rights of legal person or entity.
Key provisions in the new law:
The law basically focuses on three specific themes for the evolving cyber security regulatory
framework in China. This includes cyber attacks or intrusions, illegal acquisition or disclosure of
personal information and dissemination of information promoting or supporting terrorism or
extremism.
The law also makes specific references to technology regulation, data
localisation and cooperation with authorities. Article 19 of the law refers to the development of
national internet information department in China as a nodal center for preparation of a
catalogue on the likely list of equipment and products to be sold in China.
The law also defines key information infrastructure noting any damage, malfunction or data
leakage to it that would seriously jeopardize national security in China. It requires a security
review for data and information technology equipment used in areas like ICT services, transport
and finance.
The law grants public security agencies in China power to take necessary measures, including
the freezing of assets, against overseas individuals or organisations that attack, intrude,
interfere with or sabotage the nations key information infrastructure.
The law calls for better protective measures for key industries including public
communications and information service, energy, transportation, finance and e-government
service.
The new law makes network operators subject to strict monitoring and increases state control
over flow of information and technology equipment in China, raising concerns among foreign
companies operating in the mainland.
Under data localisation provisions, the law disallows storage of personal information
abroad. Foreign business operatives must store within China their critical and personal data
information which they collect in course of their stay and activity.
The security law also brings within its ambit the domain of personal data information, which
till now was more the subject to administrative rules and guidelines in China. Any and all personal
data collection by the operators and service providers must be done in conformity with the
principle of prior notice and consent to the users. In addition, any case of breach in data privacy
of users must be reported with the authorities.
The new law also disapproves of disclosure of anyones personal information to a third party by
the network operator or any service provider in China. It also allows a data subject or user to
request for deletion of personal information available with the service provider if its custody
amounts to violation of law.
The new law also makes necessary provisions for security certification for important network
equipment and software companies. It also makes clear that certain entities operating in key
industries like energy, transportation and finance will be subject to very specific requirements.
They are required to keep a record of related web logs for at least six months.

The new law calls for service providers in key infrastructure facilities to clear a security
assessment test conducted by the government according to the rules issued by Cyberspace
Administration in China (CAC). (The CAC was established in 2014 to ensure better state control
over cyber security network and Internet services in China.) This basically applies to service
operatives whose services may affect national security in China. CAC along with other
governmental agencies may conduct tests on network products and services that involve national
security, to be carried out on an annual basis.
Moreover, the law also calls for unspecified necessary technical support to security agencies
by firms operating in China. Network operators must provide technical support and assistance to
public or national security agencies in China if required.
Concerns raised over the new law:
Many foreign business organizations have raised deep concerns over the strict provisions of new cyber
security law in China.
They are particularly concerned with provisions related to data localisation and security review
by state agencies subject to CAC rules.
Similarly, lack of clarity in law on what exactly constitutes key information
infrastructure leaves larger scope for relating any service network to national security in China
and mandating security tests for the same. This might impede their commercial interests and
possible loss of competitive advantage.
The security test might involve disclosure of their source code and other business secrets to the
Chinese state security agencies, which many foreign business operatives will not find acceptable.
Similarly, provisions related to data localisation disallow cross border data transfer for service
providers in China even if it is commercially viable.
All these issues create operational challenges for service providers in China in future. However,
China has defended the law as being in consonance with international trade and practices.
What can India learn from this?
In view of the several hacking incidents in the country by the so-called hacker group Legion, the
ministry of electronics and IT recently ordered a series of measures including audit of the financial
sector starting immediately with the National Payment Corporation of India (NPCI), review of the IT
Act to make it stronger and setting up a crack team to respond to unusual incidents on a war footing.
However, this is not enough. Entire IT infrastructure of India should be reviewed. The need of the hour
is hardening of the security wall. There is huge traffic flowing through the IT platforms and if there
is any mishap, the systems have to be resilient and security agencies should be in a position to take
appropriate measures.
Conclusion:
While China maintains that the new rules are necessary for national security, there are valid concerns
from trading groups and commercial enterprises over cross-border data flows, protection of user
privacy and excessive control over the Internet in China. While China has defended it as a basic law
which strikes a balance between privacy and security, the legal language has led to fears that it might
increase protectionism in trade and tighten even more the already strict censorship. Nevertheless, the

long grace period till June 2017 for its implementation might provide time to facilitate some changes
in response to the dissenting voices.
26/12: Karnatakas dangerous new reservation policy

Summary:
In a move intended to appease local sentiments, the Karnataka government has released draft
amendments to the Karnataka Industrial Employment (Standing Orders) Rules of 1961 that would
implement 100% reservation for Kannadigas for blue-collar jobs in the private sector. This move by
the Karnataka government has sparked off a debate with many questioning the 100% reservation
proposed.
What is the Policy all about?
The policy gives 100% horizontal reservation

for Kannadigas in all private industries, except
the IT-BT sector, which secure concessions
under the state industrial policy. If the
industries dont follow these guidelines, the
government will cancel all concessions given.
According to the policy, industrial

establishments shall not provide less
than 5 % of employment to persons with
disabilities.
Whats the basis for this move?
The first and most crucial fact is that this amendment has emanated from, and is largely centred
around, Bangalore. With a GDP of $83 billion, it is the single largest contributor to Karnatakas
economy, and the biggest job magnet in the state. If one tracks the history of pro-Kannada
agitations in the state over the last twenty years, its clear that an overwhelming majority of them
have emerged primarily from Bangalore.
For at least over a decade, especially after Bangalore exploded on the national and global map
as the most sought-after destination primarily for software development, it witnessed a huge
population influx from all corners of India naturally upsetting the local and migrant balance and
causing social friction primarily owing to economic reasons.
With not enough jobs being createdit is the lowest in seven yearsand the poor spread of
those that are getting created, the pressure on, and in, relatively better-performing states is
growing. Thus, with a significant number of blue-collar workers from, say, Bihar in the fray for
real-estate or warehouse-operations work in Bangalore, Kannadiga workers of comparable
capability find the competition getting much tougher.
However, this demand for full or significant reservations for Kannadigas in the private sector is not
new. Its roots lie in the Sarojini Mahishi report submitted to the Government as far back as 1986. Key
recommendations of this report include:

100% reservation for Kannadigas in all state government departments and PSUs.
100% reservation for Kannadigas for Group C and D jobs in Central government departments and
PSUs.
All jobs in the private sector to be reserved for Kannadigas barring, if necessary, senior/skilled
positions.
Issues associated with this policy:
By arm-twisting the private sector into forcibly hiring Kannadigas irrespective of merit or
qualification, the indirect assumption seems to be that Kannadigas are incapable of finding jobs
on their own merit or hard work.
Equally, the definition of a Kannadiga as Local people (Kannadiga) means any person born in the
state of Karnataka or who has lived in Karnataka for not less than 15 years and knows to read,
write, speak and understand Kannada ignores reality. There are also non-locals whove lived
here for nearly a generation and dont know the language.
Even as the move will benefit the Kannadiga population, with 100% reservation, the private
sector could suffer a setback as it would hinder choosing the best candidates, irrespective of the
linguistic background or domicile of the person, to comply with the rule.
Also, once it is enforced, there is no stopping other states from coming up with similar populist
policies, even for white-collar jobs where merit is paramount for productivity. Besides, with the
migrant blue-collar labour out of the picture, wages are likely to get uncompetitive. This could
mean greater informalisation of labour, which in turn means greater insecurity for the same
workers whose interests the Karnataka government is purportedly protecting with the move.
The amendment, if adopted, will also violate the landmark Indra Sawhney judgment of the
Supreme Court which caps reservation of any manner at 50%.
The end result of industry loss of confidence and business moving elsewhere would, of course,
be a decline in the economic well-being of the Kannadiga blue-collar workers the policy is
supposed to protect.
What can be done?
Rather than cancelling all concessions to private sector companies for employing workers from other
states in blue-collar jobs, Karnataka should increase incentives to companies that promote
employment of locals.
The State must also ponder over the fallout that the move would inevitably have over investment
coming into Karnataka from other states. Instead of such 100% reservation, the government must
think constructively to impart skills training to local blue-collar job seekers so that they excel others in
an open job market.
Way ahead:
Its nobodys contention that genuine grievances of Kannadigas in Bangalore and elsewhere in the
state dont exist or that they shouldnt be addressed. But trying to address them by coercing private
businesses to hire someone for no other merit than the fact that he or she belongs to a certain
linguistic group is to kill enterprise and thereby the economy. It offers no incentive to the employee
to work; on the contrary, it offers every incentive to the employee to blackmail or harass the employer.

More fundamentally, the seventy-year history of reservations shows that it has failed as a policy to
uplift disadvantaged people. It has only created a vast class of permanent victims irrespective of
caste or community clamouring for ever-escalating demands from the state to disastrous
consequences for the nation.
Conclusion:
Demand for job quotas is a symptom of governance failure. A good education is the single most
empowering endowment an individual can get and one which governments across India have failed
to deliver. Karnataka government is now trying to offset this failure with a dangerous short cut. This
short cut will jeopardise the states industrial policy which aimed to generate an industrial growth rate
of 12% and enhance the contribution of the manufacturing sector to the state economy from about
17% to 20%. Potential investments in Karnataka will be diverted if an onerous new condition such as
100% job reservation for locals kicks in. If the government wants to boost local employability further,
it can do so by improving skills and education in the state to a high level. Blocking migrant labour will
broaden access to employment only in the short term. The sustainable method of doing so,
conversely, is by enabling the native population on multiple frontseducation, health, social safety
net. Karnataka has done better on this front than most other states. It is a pity it is attempting to
change course now.
27/12: Addressing Indias water dispute problem

Summary:
The Centre has decided to set up a single, permanent Tribunal to adjudicate all inter-state river water
disputes subsuming existing tribunals, a step which is aimed at resolving grievances of states in a
speedy manner. Besides the Tribunal, the government has also proposed to float some benches by
amending the Inter-State Water Disputes Act, 1956 to look into disputes as and when required. Unlike
the Tribunal, the benches will cease to exist once the disputes are resolved.
Key facts:
The proposed amendment to the Inter-

State River Water Dispute Act of 1956 talks
of benches under the permanent tribunal
that will look into specific disputes.
It also provides for setting up of a dispute
resolution committee, comprising experts
and policy-makers, every time a clash crops
upthe committee must try and resolve
river-water sharing fights before these are
taken to the tribunal.
The plan to put a 3-year deadline for delivering a verdict is also appealing given how long disputes
last.
In order to give more teeth to the Tribunal, it is proposed that whenever it gives order, the verdict
gets notified automatically. Until now, the government required to notify the awards, causing
delay in its implementation.

How are disputes adjudicated presently?
As per the current provisions of the 1956 Act, a tribunal can be formed after a state government
approaches Union Government with such request and the Centre is convinced of the need to form the
tribunal.
Eight such tribunals exist now. After they have heard the matter and awarded their decisions,
the tribunals are allowed to collapse.
This system has had some successes, especially with the first generation of tribunals set up soon
after independenceto adjudicate on the Krishna, Narmada and Godavari rivers.
Problems with the present system:
The present system has struggled to bring warring parties on the same page and offer equitable
solutions.
It has led to protracted proceedings and extreme delays in dispute resolution. Under the present
system, the Centre takes years to decide whether a matter needs to be heard by a tribunal in the
first place. Also, after the tribunal has been formed, it again takes many years to pronounce its
award.
Another reason for delay is the requirement that the Centre notify the order of the tribunal to
bring it into effect.
Opacity in the institutional framework and guidelines that define these proceedings have also
added to the problem. Besides, ensuring compliance is another problem.
The absence of authoritative water data that is acceptable to all parties also makes it difficult to
even set up a baseline for adjudication.
Besides, Indias messy federal polity and its colonial legacy have set the stage for n-compliance
wherein state governments have sometimes rejected tribunal awards. For example, the Punjab
government played truant in the case of the Ravi-Beas tribunal. It should be noted here that
water is a state subject but the regulation and development of inter-state rivers and river valleys
in the public interest is on the Union list.
The courts have also often been ignored, including the Supreme Court, which importantly only
has very limited jurisdiction over the tribunals, as per the Inter-State River Water Disputes Act of
1956. This has its roots in the Government of India Act, 1935 which mandated separate tribunals
and limited the jurisdiction of the federal court.
Whats good about the proposed permanent tribunal?
Since water-sharing disputes are only going to rise, and the existing mechanisms of setting up tribunals
for each case are clearly not working, the governments plan to set up a permanent, over-arching
tribunal to adjudicate all such fights looks appealing.
There will be an expert agency to collect data on rainfall, irrigation and surface water flows. This
acquires importance because party-States have a tendency to fiercely question data provided by the
other side. A permanent forum having reliable data in its hands sounds like an ideal mechanism to
apportion water.

Challenges before the tribunal:
The Cabinets proposal to have a permanent tribunal that will subsume existing tribunals is expected
to provide for speedier adjudication. But whether this will resolve the problem of protracted
proceedings is doubtful. Given the number of ongoing inter-State disputes and those likely to arise in
future, it may be difficult for a single institution with a former Supreme Court judge as its chairperson
to give its ruling within three years. Secondly, its interlocutory orders as well as final award are likely
to be challenged in the Supreme Court.
The idea of a Dispute Resolution Committee, an expert body that will seek to resolve inter-State
differences before a tribunal is approached, may also prove to be another disincentive for needless
litigation.
Why is the new move being criticised?
According to few experts, the Centres efforts to set up a single, permanent tribunal to adjudicate
inter-state water disputes will undermine the principles of federalism and will make things more
complicated instead of resolving them. It is because Centralised tribunal would not yield the desired
results and would only further delay the implementation of final awards of existing tribunals.
Water management experts say this could cause long legal battles. It may also result in an enormous
legal battle.
Way ahead:
Today, inter-state water disputes are no longer just about water allocation. They have become hugely
politicizedthe recent eruption of the Cauvery dispute, framed as an ethnic identity issue between
Tamilians and Kannadigas, which led to widespread civil unrest, is only the most recent example.
Public opinion is an important factor that cannot be wished away. The Central government must keep
these factors in mind when setting up the proposed tribunal. A robust institutional frameworkand
a transparent one to ease state and public buy-inis a must. Without that cooperative approach,
Indias water dispute resolution is unlikely to see much improvement.
Also, water disputes have humanitarian dimensions, including agrarian problems worsened by
drought and monsoon failures. Adjudication, by whatever mechanism, should not be at the mercy of
partisan leaders who turn claims into dangerously emotive issues. Institutional mechanisms should be
backed by the political will to make them work.
Conclusion:
The Centres proposal to set up a single, permanent tribunal, subsuming all existing ad hoc tribunals,
to adjudicate on inter-state river water disputes could be a major step towards streamlining the
dispute redressal mechanism. But it alone will not be able to address the different kinds of problems
legal, administrative, constitutional and politicalthat plague the overall framework. A
comprehensive policy and relook is the need of the hour.

29/12: A fair tax for long-term capital gains

Summary:
The Economic Survey of India last year noted that India under-taxes its people, and hence under-
spends, especially on social sectors like health and education. It concluded that the direct tax to GDP
ratio in India is nearly at the bottom.
Indias income tax department this year released time series data for the period 2000-01 to 2014-15.
Some worrying trends shown in the data are as follows:
There are just 18,359 individuals who have reported earnings in excess of Rs 1 crore in 2011-12
and paid tax on it.
Just 1% of individuals, who declared their income in assessment year 2012-13, accounted for
almost 20% of the taxable income.
Among corporates, a little more than 5% of the companies accounted for a whopping 94% of the
taxable income.
Direct tax collections have fallen drastically in the last five years, growing at an average annual
rate of 8.5% between assessment years 2011-12 and 2015-16, compared to the 14.1% over the
previous five years.
The drop in the growth rate of direct tax collections was accompanied by an equally dire
slowdown in the growth of corporate tax. Corporate tax grew at an average annual rate of 7.1%
between assessment years 2011-12 and 2015-16, down from the heady 15.6% seen in the
previous five years.
With the above data, it can be concluded that Indian income-tax base is very narrow. The problem of
large-scale evasion or avoidance continues.
Limitations of Indian tax structure which result in tax evasion:
High rate of taxation.

Failure to curb bribery.
Lack of simplified procedures.
Existence of large number of taxes.
Complex tax laws and loopholes in the existing taxation policy.
Lack of unorganized and systematic administrative structure.
Deficiencies in implementing penalty provisions.
What can be done to improve the tax base?
The focus has to remain on widening the income-tax base, and recent efforts to phase out
exemptions must be speeded up. Meanwhile, the narrowness of the tax base should lead to some
introspection on the part of the tax authorities.
The tax department has to work out more up-to-date methods of identifying potential taxpayers.
The streamlining of various data sources already accessible to the government must be carried
out through cross-checking of information from various sources.

Using big data techniques, multiple streams of data can be mined for individuals who have
consistent spending patterns in excess of their declared income. This will allow for more focused
audits.
I-T form for those with several sources of income should be made even simpler. Online and
paperless filing of returns and payment of tax should be made possible.
The governments approach to tax amnesty must be re-examined in light of this data. The
government needs to push through meaningful reform like taxing large farm incomes and
rationalising bounties enjoyed by the well-off, to widen the base.
As recommended by the Economic Survey, bringing more people into the tax net through some
form of direct taxation will help. In some instances, higher tax rates can also be considered by
the government.
Why a tax on LTCG is a good idea in this context?
The amount of tax foregone because of tax-free LTCG can be gauged from data released by the tax
authorities this year. In assessment year 2014-15, the total amount that escaped the tax net due to
LTCG was Rs64,521 crore. According to another study, the loss to the exchequer due to capital gains
tax exemption at Rs45,000 crore.
Therefore, the government recently hinted at increasing taxes on income from stock markets, saying
the contribution of tax from those who make money on the markets has been low and they need to
contribute more. This has left a large number of stock market investors worried as long-term capital
gains (LTCG) on listed securities are currently exempt from tax if securities transaction tax (STT) is
levied, and only short-term capital gains (STCG) are taxed.
What is capital gain?
Capital gain is the profit that one earns by selling his capital assets at a price higher than the money
spent to acquire them. The difference is the capital gain (or capital loss if the selling price is lower than
the purchase price).
Types of capital gains:
There are two types of capital gains: short-term capital gains (STCG) and long-term capital gains
(LTCG). Each asset class has its own rules with respect to both for ascertaining income tax.
Background:
Ever since 2004-5, long-term capital gains (LTCG) have been tax-free, and short-term capital gains
(made in less than one year) are subject to a rate of 15%. The liberal treatment of LTCG was considered
necessary to treat domestic stock market investors treatment on par with investors coming in from
Mauritius. The tax treaty with Mauritius, signed in 1983, has cast a long shadow on Indias domestic
tax agenda. As recently as this year, there were demands that the capital gains tax exemption be
extended from listed stocks to unlisted stocks, and to other asset classes like real estate trusts. The
treaty is also infamous for high-profile tax disputes. Therefore, the government recently amended the
tax treaty. This was a relatively unsung but revolutionary tax reform. Opponents had warned that
there would be hell to pay as foreign investors would flee India if deprived of the freebie Mauritius

route. Nothing of that sort happened, and the amended Mauritius pact will serve as a template for
other countries as well.
Conclusion:
In this context that one must appreciate Prime Minister Modis recent remarks on taxing gains from
securities markets. Since 1991, the economy has quadrupled in real terms, but stock market wealth
as measured by the index has increased by more than 15 times. The contribution to the treasury has
been less than commensurate. Correcting this would mean bringing the long-term capital gains tax at
par with our peer countries.
30/12: Comment on the Proposed National Water Commission

Summary:
India faces unprecedented challenges of water management in the 21st century. As the water crisis
deepens by the day, the old 20th century solutions appear to be distinctly running out of steam. These
solutions were devised in an era when India had yet to create its irrigation potential. While big dams
played a big role in creating a huge irrigation potential, today the challenge is to effectively utilise this
potential, as the water that lies stored in our dams is not reaching the farmers for whom it is meant.
At the same time, groundwater, which truly powered the Green Revolution, faces a crisis of
sustainability.
In this regard, the government of India had set up several special groups to come up with a
paradigm shift in water management in the last few years. A committee headed by Mihir Shah
was one such committee. The Committee, called Committee on Restructuring the Central Water
Commission (CWC) and Central Ground Water Board (CGWB), headed by Shah was set up to
come up with concrete proposals to address the water problems.
It submitted its report titled, A 21st Century Institutional Architecture for Indias Water
Resources, to the central government in July 2016. Among others, the committee recommended
the creation of a new National Water Commission (NWC) as the nations apex facilitation
organisation dealing with water policy, data and governance.
Proposed NWC:
The commission report recommended that NWC be headed by a chief national water commissioner
and should have full time commissioners representing hydrology, hydrogeology, hydrometeorology,
river ecology, ecological economics, agronomy (with focus on soil and water) and participatory
resource planning and management.
It will be an autonomous body & will to have a countrywide base and mandate, and greater
human-power.
It will subsume Central Water Commission & the Central Ground Water Board.
The commission aims at reducing inter-state water disputes, bring greater efficiency, better
planning and increased emphasis on conservation of water.
It also ensures that all water resources in the country are managed in a holistic manner and not
separately as surface water, groundwater or river water.

Why this is necessary?
To optimally develop water resources in India so that all river basins and resources can be
managed keeping in mind the increasing unpredictability of the monsoon and other climate
factors.
Decreasing per capita availability of water and the huge projected demand of this natural
resources by 2050 may also be the triggers for such a move.
Besides, the present mandate of Central Water Commission (CWC) belongs to an old era when
dam construction and tube well drilling was the prime need of the hour. The CWC now lacks
expertise in water utilisation, environmental and socio-economic issues and in efficient irrigation
management to deal with present-day challenges of droughts, floods, climate change and food
and water security.
Also, at present, the CWC, which develops surface water projects, and the Central Ground Water
Board (CGWB), which monitors ground water use and contamination, carry out functions
independent of each other. For integrated water management, development, planning, water-
use efficiency and for budgeting the adoption of a river basin approach, restructuring or a single
commission is necessary.
Challenges before NWC:
A burning issue the NWC has to deal with is how to provide water security to Indias 2,50,000-
odd villages that are now fully at the mercy of vagrant monsoons.
Effective human resource management will be a major challenge for the NWC. The manpower
requirements of the NWC seem huge. It is supposed to catalyse participatory institutions in rural
areas. It would require an army of change agents with the requisite skills and commitment to
cover the length and breadth of the country. Besides this, a great variety of professional experts
are to be hired to fulfil the NWCs various missions.
Also, it will need to estimate the costs of its operations, and develop a funding strategyhow
much from the centre, how much from the states, how much from international bodies such as
the World Bank and Asian Development Bank, and how much from the corporate, public and
private sectors?
How to make NWC more efficient?
They can rope in a number of high-quality non-governmental organisations (NGOs) that are
already in the rural water management business. They have vast experience of ground realities,
and know how to help set up effective peoples participatory bodies to create and manage
groundwater resources in such villages.
Given the political scenario in India and growing conflicts over water, however expert and world-
class the NWC becomes, it would not be able to fulfil its mandate unless it has teeththe power
to approve, decide, and give orders in areas where it has implementation responsibilities. One
possible way could be that no water-related scheme exceeding a certain threshold, say 100
crore, can be undertaken by any state or by the centre without its approval.
Also, the approval should be granted only after the required criteria for effective water utilisation
are incorporated in the scheme, and the NWC should monitor the progress of the scheme and
levy stringent penalties if there is default.

As of now, the report recommends NWC to be autonomous, but under the Ministry of Water
Resources, River Development and Ganga Rejuvenationthat is, under bureaucratic control. This
has created some confusion. Therefore, it is necessary to safeguard its autonomy. If it must report
to the ministry, then a way of safeguarding its operating autonomy could be a memorandum of
understanding (MoU) under which the mandate, accountability for performance, and the
autonomy of the NWC are spelt out.
Conclusion:
Mere technically elegant solutions for designing the NWC will not suffice. Bureaucratic or merely
technocratic administration could kill it. The NWC will need to be designed and managed
professionally, and in such a way that it does not go the way of many government bodies, including
the CWC and CGWB, that are run by technocrats without management expertise, or by bureaucrats
without domain expertise and with uncertain tenures.
31/12: Why more than note-ban, India needs a Big Bad Bank
Summary:
The withdrawal of Rs500 and Rs1,000 notes on 8 November has changed the composition of money
supply in the economy. A large part of what was currency in circulation is now coming to banks as
deposits. The sudden inflow of deposits has given rise to speculation about how these will be utilized
by the banks. There are reports that banks will increase lending. Some have suggested that banks
non-performing asset (NPA) problems will get alleviated. However, according to few experts, NPA
situation of banks may get worse, further adding to their capital woes.
Background:
The gross bad loans of 39 listed Indian banks in India, in absolute term, rose 92% in fiscal year 2016 to
Rs.5.79 trillion even as after provisioning, the net bad loans more than doubled to Rs.3.38 trillion. In
percentage terms, the average gross non-performing assets (NPAs) of this group of banks rose from
4.41% of loans in 2015 to 7.91% in 2016; net NPAs in the past one year rose from 2.45% to 4.63%.
Public sector banks, which have close to 70% market share of loans, are more affected than their
private sector peers. Two of them have over 15% gross NPAs and an additional eight close to 10% and
more. If we include restructured loans as well as those loans that have been written off, the total
stressed assets could be as much as one-fourth of loans, at least for some of the government-owned
banks.
Main reason behind the creation of bad loans:
The main reason behind the rise is improper management of these loans by the banks. Many of
the assets created utilizing these loans remain unutilized or partially utilized because of the
ineffective management.
Even the courts take many years for the resolution of these cases.
In the last two years, especially, the bank bad loans have gone up dramatically mainly because of
two reasons. One, the market failure and the other, bad debts were often not reflected properly
by the banks.

Crony capitalism is also to be blamed. Under political pressure banks are compelled to provide
loans for certain sectors which are mostly stressed.
In the case of sectors like electricity, the poor financial condition of most SEBs is the problem; in
areas like steel, the collapse in global prices suggests that a lot more loans will get stressed in the
months ahead.
Stressed sectors like infrastructure, textiles and mining have added to the problem.
Why demonetisation may have little or no impact on bad loans?
Deposits are liabilities on a banks balance sheet, which they use to make loans and advances,
which are their assets. But, in the current context, banks do not know how long these new
deposits will stay on their books. So they can deploy these only in short-term assets. Thus, banks
will face constraints in using the new deposits to make new loans.
Also, the burgeoning NPAs of the banking system have significantly eroded their capital base and
hence their ability to lend. In June, gross NPAs (GNPAs) of listed banks were Rs6.7 trillion or 9.1%
of their advances. The 27 public sector banks (PSBs) account for 80% of these NPAs. In 15 of
them, GNPAs as a percentage of advances are more than or close to the capital to risk weighted
assets ratio (CRAR). Except for the State Bank of India and a few other PSBs, the CRAR headroom
required to make new loans does not exist.
There is also a question of demand for new loans. Corporate credit demand has been slow. The
currency ban has imposed a big negative shock on consumption demand, which in turn may lead
to businesses cutting back on their working capital requirement, at least in the next few quarters.
This in turn will affect the demand for working capital loans.
If banks cannot make loans on these deposits, then they can park them with RBI as reserves.
Banks would not prefer to park these deposits as reserves with the RBI beyond the cash reserve
ratio (CRR) limit, because these reserves do not earn them any interest.
Banks can also invest excess deposits in government securities (G-secs). G-secs being sovereign
bonds do not pose any capital requirements on banks, give them returns and allow them to
match their asset liability profile. But, the availability of G-secs in the market is determined by
the borrowing programme of the government and is not easy to expand without raising fiscal
concerns. This limits the supply of G-secs.
Besides, with more incoming deposits, RBI will soon run out of G-secs that are needed to absorb
the excess liquidity. This seems to be the case because RBI has now made it mandatory for banks
to hold 100% CRR on incremental deposits. This announcement prevents banks from investing
the incremental deposits in G-secs.
What are the main concerns now?
The move to ban the Rs500 and Rs1,000 notes does not appear to be a positive one for the banking
sector. They may not be in a position to significantly increase lending and their capital base may get
worse.
If economic activity slows down in the aftermath of the currency ban and corporate performance
deteriorates, there may even be a spike in their NPAs, at least in the short term.
In addition to this, bank branches all over the country have been struggling to deal with the
massive transaction load that this move has placed on them. The normal banking business has

been disrupted and bank employees have been occupied in dealing with exchange, deposits and
withdrawals of currency.
What can the government do?
The government has to ensure the earlier hurdles, like not having enough debt recovery
tribunals, hinder the banks from getting closure on their legal suits.
The government must also work with the regulator to ensure that banking practices improve in
all banks.
Politically and administratively, the government should be aware that the state-owned banking
sector is undergoing extreme fragility, and this is not the time to stress it further with various
nation-building demands, particularly when it is reluctant to take bold steps that entail their
fundamental restructuring.
Reduced political interference is also necessary. The political system has too often taken
taxpayers for a ride, with small benefits masking large hidden costs. They have the right to know
what they are paying for. Stronger boards and improved governance mechanisms can ensure
that PSBs make independent decisions on purely commercial grounds.
Conclusion:
At a time when the banking sector has been struggling to recover its bad loans and to find adequate
capital to deal with provisioning challenges, this sudden shock may worsen the situation even further.
The Indian banks are in real danger of losing not only their market share but also their identity unless
the government intervenes with surgical precision and alacrity. It is tie for the government and the
RBI to come out with a smart option to resolve this issue that can no longer be put on the backburner.

Insights into Issues
1. Surrogacy (Regulation) Bill, 2016

Status Quo on Surrogacy
India has become the hub for surrogacy. In

2002, India had become the first country to
legalize commercial surrogacy. By 2012
India had become the surrogacy capital of
the world with surrogacy tourism valued at
400mn$ annually (according to a UN 2012
report). There are various reasons for it:
In developed countries in general,

surrogacy is permitted only among
relatives
In India, because of financial reasons,
there is an availability of those who
are willing to be surrogates
India also offers low cost advanced
medical facilities which attract a lot of
medical tourism in general and
surrogacy in particular
There are no religious barriers against
the concept of surrogacy
There is no law that deals with various aspects of surrogacy. At present, it is governed by the
Indian Contract Act. There are guidelines of ICMR which are not enforced properly. The absence
of regulations and guidelines has led to a thriving industry of reproduction clinics and surrogacy
Problems with Surrogacy in India:
In past there has been death cases associated with surrogacy

There have been several litigations involving surrogacy such as the Baby Manji Yamada case, Baby
Balaz case which has led to court interventions and directives. In Baby Manji Yamada case, a
Japanese couple who availed of surrogacy in India, divorced while the surrogate mother was
pregnant. They then refused to take ownership of child. Gujarat HC then stated extreme urgency
to deal with such cases
On a number of occasions, Indian adoption laws or some other countrys citizenship laws create
hurdles. For example, Germany recognizes citizenship by mother which creates issues in
determining nationality of surrogate child
Problem also arises if twins/triplets are born in place of a single child over the issue of custody of
child
A comprehensive law is required to deal with following issues
Rights of surrogate mother which includes fair compensation, adequate maternal care, right
to abort and provision of maternity relief

Law has to prescribe condition like surrogacy by consent. The surrogate mother should be
aware of impact of hormones etc on her health
The number of times surrogacy is permissible, consent of husband if married are also
important issues to be dealt with
Life Insurance coverage
Clarity over rights of commissioning parents, rights of child born
The angle of homosexuality
View of LCI
228th LCI report recommended prohibiting commercial surrogacy and allowing ethical altruistic
surrogacy to the needy Indian citizens by an apt legislation
Provisions of the Surrogacy (Regulation) Bill, 2016 approved by Union Cabinet:
The Bill will regulate surrogacy in India establishing a National Surrogacy Board at the Central
level and State Surrogacy Board and appropriate authorities in the state and Union Territories.
The legislation will ensure effective regulation if surrogacy, prohibit commercial surrogacy and
allow for altruistic surrogacy to the needy infertile couples
The Bill bars foreigners, homosexual couples, people in live in relationships and single individuals
from becoming surrogate parents. Only childless, straight Indian couples married for a period of
5 years, having proven fertility problems are eligible for surrogacy. NRIs and PIOs who hold
Overseas Citizens of India (OCI) cards have also been barred from opting for surrogacy
Eligible couples will have to turn to close relatives, not necessarily related by blood for altruistic
surrogacy no exchange of money between the commissioning couple and the surrogate
mother. The Bill, which borrows heavily from UKs altruistic surrogacy Bill, has changed the British
provision of allowing only blood relatives to close relatives, a term that will be further
elaborated in the rules
The rights of surrogate mother and children born out of surrogacy will be protected
Bill will apply to whole of India except Jammu and Kashmir
Women acting as surrogates can do so only once
All Assisted Reproductive Technology clinics will have to be registered
10 months during whichpregnancies underway now can be seen through and babies delivered
Advantages of the Bill
The Bill comes at a time when there is a huge need for legislation covering this subject. The Bill focuses
on preventing commercialization of surrogacy, prohibit potential exploitation of surrogate mothers
and children born through surrogacy. In order to take care of those mothers or couples who have
opted for surrogacy as on date, the Bill prescribes a 10 month period to ensure that inconvenience is
not caused to the couples and surrogate mother.
Criticism
The Bill raises questions over the reproductive rights of a woman. The right to life enshrines the
right of reproductive autonomy, inclusive of the right to procreation and parenthood, which is
not within the domain of the state, warranting interference of a fundamental right. It is for the
person and not the state to decide modes of parenthood. It is the prerogative of person(s) to

have children born naturally or by surrogacy in which the state, constitutionally, cannot
interfere.
Restricting limited, conditional surrogacy to married Indian couples and disqualifying other
persons on the basis of nationality, marital status, sexual orientation or age does not appear to
qualify the test of equality (article 14), or of being a reasonable classification, satisfying the
objective sought to be achieved.
The bill deprives single parents, homosexuals of availing the bliss of parenthood through
surrogacy
Infertility cannot be compulsory to undertake surrogacy. This violates the Freedom of choice
available to citizens
The Indian Council for Medical Research (ICMR), working under the ministry of health and family
welfare, finalised the National Guidelines for Accreditation, Supervision and Regulation of
Artificial Reproductive Technology (ART) Clinics in India, 2005, after extensive public debate all
over the country with all stakeholders. In that it had been stipulated that there shall be no bar to
the use of ART by single women who would have all the legal rights and to whom no ART clinic
may refuse to offer its services for ART. Likewise, there was no legal bar on an unmarried woman
going in for Artificial Insemination with donor semen (AID) and a child born to a single woman
through AID would be deemed legitimate. By anomaly, single men too could claim this right.
These guidelines have not been rescinded till date. Successive draft ART (Regulation) Bills in 2008,
2010 and 2013, had reportedly proposed that ART in India would be available to all, including
single persons and foreign couples.
Economically, the bill is bound to have affect on the thriving medical tourism in the country and
people associated with it. There are certain countries, particularly European, surrogacy is banned
for commercial reasons. The Indian government took a very sensible decision then and decided
not issue visas to people coming from such countries. But, there were others who came from
countries like the US where surrogacy was available, but exorbitantly expensive. India has also
been a safe hub as compared to countries like Indonesia, where fertility procedures are
completely unregulated. Indian doctors are competent and clinics are clean and more
importantly there was a contract to be signed, which eliminated exploitation and blackmail
possibilities on both sides. A blanket ban on such medical tourists makes no sense at all especially
when we issue visas to them for other forms of medical tourism.
Many countries including the UK that have experimented with altruistic surrogacy have realized
that this only tends to push the whole transaction underground. A woman who bears a child for
another one is actually performing a service and needs to be compensated for it. If altruistic
surrogacy is enforced, the commissioning parents have to find some non-legal means to pay the
woman who has spent a year or more of her life trying to ensure the birth of a healthy baby or
babies.
The Bill leaves several questions unanswered such as ensuring protection of health of surrogate
mother, maternity relief available to her etc
There is definitely a need for regulation. But the large-scale banning proposed in this bill is akin to
trying to cap a volcano. There is no stopping technological advancement and no government can wish
away the fact that it has been possible for decades now to create babies outside the womb and to
successfully implant them in the womb of a woman who has no genetic link to the embryo. While
there is a need for regulation, we can not wish away the advances in medical science and the

subsequent impact on surrogacy. We need to have a legislation which, while dealing with the
problems associated with surrogacy does not interfere with the reproductive rights of a woman and
freedom of choice available to an individual
2. Waste Management
The Government of India had notified the Municipal Solid Waste (Management and Handling) Rules
in 2000, thereby making it mandatory for all urban local bodies in the country to engage in collection,
segregation, secondary storage in covered bins, transportation in covered vehicles, processing
through composting or waste-to-energy technologies and disposal of rejects in engineered/sanitary
landfills.
Door to door collection coverage is scanty at best, and segregation at household level is a rarity.
Collection even from community bins is not regular. Collection efficiency is low.
Processing is limited to very small portion of the waste.
Dumping is done in land-fills without any regard for environment and without following scientific
methods of disposal. Such inadequate disposal practice lead to problems that will impair human
and animal health and result in economic, environmental and biological losses.
Improper waste management causes public health and environmental hazards like climate
change, air and water pollution, soil contamination, spreads odours and disease, and breeds
vermin including flies, mosquitoes, rats, dogs and monkeys.
Even after 12 years, most cities have confined

themselves to collection and transportation of solid
waste. Processing and safe disposal are being
attempted only in a few cases.
The CPCB report also reveals that only 68% of the MSW
generated in the country is collected of which, 28% is
treated by the municipal authorities. Thus, merely 19%
of the total waste generated is currently treated. .
Some of the major issues concerning solid waste management are:
1. Absence of segregation of waste at source

2. Lack of funds for waste management at ULBs
3. Lack of technical expertise and appropriate institutional arrangement
4. Unwillingness of ULBs to introduce proper collection, segregation, transportation and
treatment/ disposal systems
5. Indifference of citizens towards waste management due to lack of awareness
5. Lack of community participation towards waste management and hygienic conditions
6. Lack of sewage management plan.
The Kasturirangan report by PC highlights the need for an integrated approach:
reduction and segregation of waste at source and also efficient utilization of various components
of the waste.

principle of Reduce, Reuse, Recover , Recycle and Remanufacture (5Rs) should be adopted
motivate Resident Welfare Associations (RWA), CBO / NGOs to take up work of community
awareness and door to door collection
Integration of kabadiwalas and rag pickers into MSWM system
It emphasizes setting up centralised (for incineration, gasification, pyrolysis) or decentralised (for
biomethanation, vermicomposting) waste processing facilities keeping in view the quantity and
quality of waste generated and financial viability of the processing technology.
set up Common Regional Sanitary Landfill Facility, to reduce the land requirement. Cities above
a population of one million should set-up their own landfill and permit all cities and towns within
50km periphery of the city to use the facility for disposal of their waste.
Recently, Deonar and Bhalswa landfill fire.
Internationally:
For instance, Copenhagen recycles most of the waste it generates and lets only 3 per cent go to
the landfill.
Japan: In Japan, Incineration has been the primary disposal route for waste due to lack of space
for landfills 74% of all waste produced in Japan is incinerated with just 2% sent to landfill.
Extending the idea of recycling, Kitgum town in Uganda traps used water from houses and
utilises it to grow food in greywater gardens.
Construction waste:
Disappearance of urban water bodies and wetlands in urban areas can be attributed to illegal
dumping of C&D waste.
In most cases, real estate developers deliberately do this to reclaim eco-sensitive areas for real
estate.
In Mumbai, builders dump C&D waste in the coastal mangroves and creeks.
In Delhi, the Yamuna floodplain is the favourite dumping ground.
Over the last five years, Indias first and only recycling plant for construction and demolition
(C&D) waste has saved the already-polluted Yamuna and the overflowing landfills of Delhi from
15.4 lakh tonnes of debris. The waste is crushed, washed and used to make ready-mix concrete,
kerb stones, cement bricks, pavement blocks, hollow bricks and manufactured sand.
Several countries have found ways to manage the C&D waste: they recycle the waste and reuse
it in construction. Singapore recycles 98 per cent of it
e-waste:
The composition of e-waste is diverse and falls under hazardous and non-hazardous
categories.
There are10 States that contribute to 70% of the total e-waste generated in the country,
while 65 cities generate more than 60 per cent of the total e-waste in India.
Why is it becoming a huge problem??
According to a UN report, Indias e-waste from old computers alone will jump 500 per cent by
2020, compared to 2007. This warrants attention.
Short life span of electronic products

Further, the availability of choices, affordability of products, changing pace of life, rapid
urbanization, and increased purchasing capacity of the middle class have all contributed to the
growth of the electrical and consumer durable industry
The growing pressure on the developing countries to import waste through bilateral or free
trade agreements is a cause of serious concern as it encourages the business of recycling
wastes.
We lack the infrastructure to process the waste. It largely takes place in informal sector.
Risks:
Environmental: toxic metals- lead, cadmium, mercury, arsenic, chromium, PCBs, CFC etc can
cause soil, water pollution, air pollution in the form of fumes due to burning (dioxins and furans)
Health Concerns: for general populace as well as for those who handle it.
E-waste often ends up in landfills in India!
Potential asset:
Consists of recoverable aluminium, copper, platinum, gold, silver, palladium.
e-waste rules:
Notified by MoEF in 2011 for proper management and handling

The concept of Extended Producers Responsibility (EPR) has been enshrined in these rules.
E-waste recycling can be undertaken only in facilities authorized and registered with State
Pollution Control Boards/Pollution Control Committee (PCCs).
Wastes generated are required to be sold to a registered or authorized recycler or re-processor
having environmentally sound facilities.
Criticism of E-waste rules:
No take-back targets for manufacturers and hence no clear responsibility.

No guidelines on how to set up an e-waste collection system
Scrap dealers pay better price for used electronic goods
The law currently does not provide for any plan to rehabilitate those involved in informal
recycling.
Then there is no system for certifying or declaring the end-of-life of a product, nor any legal
format for issuing destruction certificate for an electronic item.
It ignores the unorganized and small and medium sectors where 90 per cent of the e-waste is
generated.
The draft Rules also do not recognize the magnitude of trans-boundary movement of e-waste
In the new draft rules, landfill remains a form of disposal The rules define Disposal as any
operation that includes physio-chemical or biological treatment, incineration and deposition in
secured landfill.
The state pollution control boards (SPCBs), which are at the forefront of implementing the e-
waste rules, are weak entities with limited financial and human resources.
There is no thrust on building consumer awareness.
Lastly, so far the ministry has no data on how much e-waste the country generates
There is low consumer awareness

New advisory for safe disposal of e-wastes in Delhi:
Bulk consumers will have to ensure safe disposal.

Will have to file annual return
Delhi govt has installed e-waste bins for its collection.
Bio-medical waste:
Bio-Medical Waste (Management &Handling) Rules, 1998 notified under the Environment
(Protection) Act, 1986.
Require to segregate according to color code

Required to treat and dispose
MSW Management:
There are many categories of MSW such as food waste, rubbish, commercial waste, institutional
waste, street sweeping waste, industrial waste, construction and demolition waste, and sanitation
waste.
What is being done/ can be done to address it?
After collection of municipal waste from households, there are three ways of disposalcomposting
units, bio-methanation to produce bio-gas, and recovering heat energy in the form dry fuels from
combustible fractions.
CompostingCan be put into cycle of sustainable nutrient reuse by turning waste into valuable
organic input. Composed organic/ biodegradable waste can help improve soil vitality, root growth and
soil moisture retention. For composting units, segregation of waste to collect only organic waste is
the most laborious task.
Aerobic composting: The bacterial conversion of the organics present in MSW in the presence of
air under hot and moist conditions is called composting, and the nal product obtained after
bacterial activity is called compost (humus), which has very high agricultural value. It is used as
fertilizer, and it is non-odorous and free of pathogens.
As a result of the composting process, the waste volume can be reduced to 5085%. The composting
methods may use either manual or mechanical means.
Vermi-composting: Vermi-composting involves stabilization of organic waste through the joint

action of earthworms and aerobic microorganisms. Initially, microbial decomposition of
biodegradable organic matter occurs through extra cellular enzymatic activity (primary
decomposition). Earthworms feed on partially decomposed matter, consuming ve times their
body weight of organic matter per day. The ingested food is further decomposed in the gut of
the worms, resulting in particle size reduction. The worm cast is a ne, odorless and granular
product. This product can serve as a biofertilizer in agriculture.
Anaerobic digestion-If the organic waste is buried in pits under partially anaerobic conditions, it
will be acted upon by anaerobic microorganisms with the release of methane and carbon
dioxide; the organic residue left is good manure. This process is slower than aerobic composting

and occurs in fact naturally in landlls. However, thermophilic digestion for biomethanation is
much faster and has been commercialized. Anaerobic digestion leads to energy recovery
through biogas generation. The biogas, which has 5560% methane, can be used directly as a
fuel or for power generation. There is potential for utilizing industrial, agricultural and municipal
wastes.
Waste To energy (incineration, pelletisation, biomethanation)- in 2013-14 Budget, the FM proposed

to support municipalities for waste-to-energy projects in PPP mode through instruments such
as VGF, repayable grant, low-cost capital.
It is not that attractive in India due to high moisture and organic content, and low calorific value of
the wastes. The Lucknow biomethanation plant in 1990 failed because it was designed to handle only
wet segregated waste but had to cope with mixed waste.
Appropriate incentives and regulatory framework needs to be provided.
Incineration is the process of control and complete combustion, for burning solid wastes. It leads
to energy recovery and destruction of toxic wastes, for example, waste from hospitals. The
temperature in the incinerators varies between 980 and 2000 C. One of the most attractive features
of the incineration process is that it can be used to reduce the original volume of combustible solid
waste by 8090%.
Incineration of solid waste under oxygen decient conditions is called gasication. The objective
of gasication has generally been to produce fuel gas, which would be stored and used when
required. In India, there are few gasiers in operation, but they are mostly for burning of
biomass such as agro-residues, sawmill dust, and forest wastes.
Gasification is an incomplete combustion of organic matter that replaces a large part of the carbon
dioxide we get from combustion with carbon monoxide and hydrogen. Gasification also eliminates
the threat from dioxins.
Methanogenesisor bio-methanation is the formation of methane by microbes known as

methanogens.
The main purpose of the refuse derived fuel (RDF) method is to produce an improved solid fuel
or pellets from MSW.
Recycling of items such as plastic, paper, glass, rubber, ferrous and non-ferrous metals. Rag
pickers play a key role however the process of manual recycling cannot be scaled-up and at the
same time handling waste directly poses health and environmental risks. Further, all the work
is done in informal sector.
Plastic bags have been banned in a number of big cities.
Sensitization of citizens as well as government authorities, community participation, involvement of

NGOs. Littering should be prohibited.
Segregation and community participation are the key factors.

Conclusion- The need of the hour is scientific, sustainable and environment friendly management of
wastes.
3. Antimicrobial resistance
Antibiotic resistance arises when bacteria evolve mechanisms to withstand the drugs which are used
to fight infection. It is one of the most important public health issues currently. Antimicrobial
resistance happens when microorganisms (such as bacteria, fungi, viruses, and parasites) change
when they are exposed to antimicrobial drugs (such as antibiotics, antifungals, antivirals, antimalarials,
and anthelmintics). Microorganisms that develop antimicrobial resistance are sometimes referred to
as superbugs. As a result, the medicines become ineffective and infections persist in the body,
increasing the risk of spread to others.
Why is antimicrobial
resistance a global
concern?
New resistance
mechanisms are
emerging and
spreading globally,
threatening our
ability to treat
common infectious
diseases, resulting in
prolonged illness,
disability, and death.
Without effective
antimicrobials for
prevention and
treatment of
infections, medical
procedures such as
organ
transplantation, cancer chemotherapy, diabetes management and major surgery (for example,
caesarean sections or hip replacements) become very high risk.
Antimicrobial resistance increases the cost of health care with lengthier stays in hospitals and
more intensive care required
Antimicrobial resistance is putting the gains of the Millennium Development Goals at risk and
endangers achievement of the Sustainable Development Goals
For developing countries like India the emergence of resistance is likely to cause a huge economic
burden on account of negative externalities like health

The World Alliance against Antibiotic Resistance (WAAAR) a conglomerate of 600 individuals from
50 countries and 96 professional groups is concerned by the increasing incidence of antibiotic
resistance.
Reasons for Antibiotic Resistance:
Caused by indiscriminate use, wrong dosage, not completing the treatment, poor hygiene, poor
regulation, wrong incentives for doctors to prescribe them
Unchecked use of antibiotics in humans, agriculture and livestock. In animal husbandry,these
medicines are used not only to treat diseases but also to enhance the body mass of animals to
increase their food yield. Last year a report in Delhi found unusual levels of antibiotic in poultry.
This has important repercussions on human health
The scale-up in antibiotic use in India has been enabled by rapid economic growth and rising
incomes, which have not translated into improvements in water, sanitation, and public health.
Antibiotics continue to be prescribed or sold for diarrheal diseases and upper respiratory
infections for which they have limited value
Health system factors are also at fault. Doctors routinely receive compensation from
pharmaceutical companies and pharmacists in exchange for antibiotic prescriptions. Infection
control in hospitals is poorly monitored and could be improved
The problem of resistance is exacerbated by a wide range of fixed-dose combinations in the
market, often without scientific or medical merit or evaluation. A recent study reported 48 fixed
dose combinations and 22 loose antimicrobials for tuberculosis. Loose antimicrobials come
without packaging and do not mention the name of the drug, its manufacturer, the date of
manufacture, or the date of expiry. There is poor clinician awareness of the rationality and dosing
of fixed-dose combinations
Environmental antibiotic pollution encourages the transfer of resistance genes to. In particular,
waste water treatment plants serving antibiotic manufacturing facilities have been implicated in
the transfer of resistance genes into humans and pose a serious threat to antibiotic effectiveness
given the size of Indias pharmaceutical sector
Why in news?
Antibiotic resistance on the rise due to rise of superbugs. Earlier lancet had reported the rise of
New Delhi Metallo-beta-lactamase-1 which was an enzyme that rendered bacteria resistant to a
broad spectrum of antibiotics. A strain of the NDM1 had crossed the shores and spread resistance
in the U.K. as well. Now another report in Lancet has stated the rise of Klebsiella,
Acinetobacter, Ecoli in India
It led to death cases in even minor diseases like sepsis and pneumonia. 26% of babies with sepsis
died as Multi Drug Resistance made the ailment untreatable
A March 2016 paper on Antibiotic Resistance in India: Drivers and Opportunities for Action in
PLOS Medicine makes a convincing case for action against resistance: Antibiotic resistance is a
global public health threat, but nowhere is it as stark as in India. The crude infectious disease
mortality rate in India today is 416.75 per 100,000 personstwice the rate in the U.S. (200) when
antibiotics were introduced.

Steps taken to deal with the menace:
Over-the-counter access to antibiotics is a problem, but regulations to restrict access have to be

balanced against the need to maintain access for the significant proportion of the population that
lacks access to doctors. Indeed, lack of access to effective and affordable antibiotics still kills more
children in India than does drug resistance. However, to prevent over-the-counter (OTC) sales of
important antibiotics, the Central Drugs Standard Control Organization (CDSCO) implemented
Schedule H1 that takes animportant first step in that direction by introducing a
stringentrule that prohibits medical stores from selling 24 key antibiotics without a
doctors prescription
Further the ICMR has set up National Anti-Microbial Surveillance Network for understanding of
underlying mechanisms of resistance
National Cell for Monitoring Anti Microbial resistance: Govt has also decided to start a Rs 30
Crore Surveillance Plan in tertiary care centres across the country
National Policy for Containment of Antimicrobial Resistance (2011), to address the problem of
multi-drug resistance due to widespread and indiscriminate use of antimicrobial / antibiotic
drugs in the country. The salient features of the policy are as follows:

To review the current situation regarding manufacture, use and misuse

To initiate studies documenting prescriptions patterns & establish a monitoring system for
the same.
To recommend the design for creation of a National Surveillance System for Antibiotic
Resistance
To enforce and enhance regulatory provisions for use of antibiotics in human & veterinary
and industrial use.
To recommend specific intervention measures such as rational use of antibiotics and
antibiotic policies in hospitals
Diagnostic Methods pertaining to antimicrobial Resistance Monitoring
Steps needed further:
Much more needs to be done, including getting doctors to prescribe antibiotics only when
essential. Behaviour change is needed among physicians and patients. India has achieved
remarkable reductions in smoking in buildings and workplaces through regulation and behavior
change communication. Similar campaigns could work to educate the public and physicians about
the dangers of uncontrolled antibiotic use, as has been the case in high-income countries

Changes in rules under which physicians can accept compensation are already in place under the
rules of the Medical Council of India, and should be extended to cover prescriptions for antibiotic
sales
Hospitalsmust pay attention to proper infection control.
Awareness drive around rationalisation of antimicrobial drug usage and acceleration of R&D
activities for novel and more effective drugs.
Incorporating principles of antimicrobial stewardship and appropriate use into undergraduate
and postgraduate medical education can be implemented and is under consideration by the
Government of India. A more difficult problem is that of regulating the sales of substandard and
illegitimate antimicrobials, the extent of which is poorly quantified
There are no regulations governing the discharge of antimicrobial waste into the environment,
and these are needed.
Currently, India does not have regulatory provisions for the use of antimicrobials in cattle,
chickens, and pigs raised for domestic consumption. Recent studies in various regions of India
have discovered antimicrobial residues in food animal products (such as chicken meat and milk),
indicating that antibiotic use in food animal production is widespread. There are no standards for
tolerance of antibiotic residues in poultry, although such standards do exist for seafood
including shrimps, prawns, or any other variety of fish and fishery productsunder the Food
Safety and Standards Regulations of 2011. Effective limits on antimicrobial growth promoters in
India could have knock-on effects on neighbors such as Bangladesh, Nepal, and Sri Lanka that are
likely to be guided and influenced by regulatory action in India, given the interconnectedness of
the regions pharmaceutical commerce
Conclusion:
WHO Report states that the world is headed for a post- antibiotic era in which common
infections and minor injuries, which have been treatable for decades, can once again kill,.
Resistance has negative externalities for the whole society. Due to reckless use, they are not only
losing their effectiveness but becoming resistant. It was only about 70 years ago that penicillin was
discovered. Today the resistance in microbes is developing at a much faster rate than the rate at
which new drugs are developed. Much needs to be done, not only by governments but also by the
private sector, which manages a big proportion of health care, as well as the veterinary sector
4. Merger of Railway Budget into the General Budget

The almost century old practice of presenting a separate Railway Budget ahead of the General Budget
is to be dispensed with from the next financial year (2017-18) and the Railway Budget will be merged
with the General Budget. The proposal has been cleared by the Union Cabinet.
Reasons for the aforementioned step:
The decision to present a separate railway budget was a mandate of the colonial era policy of
British government on the basis of report by Acworth Committee. In 1924, when the first
Railways budget was presented, the Railways entailed more funds than Indias expenditure on
all other aspects of administration combined. Moreover, it was a tool to protect the foreign
investment, particularly British investment in railways in India

Also, a separate Railway Budget is being dispensed with so that the Indian Railways need not pay
the annual dividend to the Government of India on the budgetary support given each year, saving
the financially stressed Railways about Rs.10,000 crore annually
In 1924, when the first Railway Budget was presented, the Railways entailed more funds than
Indias expenditure on all other aspects of administration combined. So it made sense to present
a separate Budget. That equation changed long ago, and now the Railways outlay is just 6 per
cent of the total expenditure proposed in the Union Budget for this year. In fact, revenues from
the domestic aviation business are more than the Railways traffic earnings. Nearly Rs.2.5 lakh
crore has been planned this year as defence expenditure, but it found little mention in the
Finance Ministers Budget speech. Yet, the ritual of the Rail Budget has continued even as the
economy opened up over the past 25 years. A key reason that it lingered so long is Indias
fractured polity and the tendency of coalition partners to demand Railways as a juicy portfolio
with its possibilities for populist posturing and patronage. Over the years, the Budget has been
misused by politicians as a populist platform to enhance their own image
Railway Ministers will no longer need to conjure up fancy and often regurgitated promises about
new, improved services for passengers without charging them the operational costs of reaching
their destination. The pressure to hold commuter fares has skewed the Railways freight rates,
year after year. Indeed, the change is already being felt as tweaking of tariffs outside the Budget
has begun. Other instances are changes in coal freight and the introduction of flexible pricing on
premium passenger trains.
No other Ministry has a separate budget and the practice exists in no other country today.
The NITI Aayog had suggested this merger as the Railway budget was being used to dole out
favours by way of new trains and projects.
Bibek Debroy Committee has recommended discontinuance of a separate Rail Budget and it is
part of the Prime Ministers reform programme
Railway Minister Suresh Prabhu has said that the merger of rail and general budgets will not
impact the functional autonomy of the railways but help in enhancing capital expenditure. It
would help the Railways raise extra capital expenditure that would allow them to enhance
connectivity in the country and boost economic growth.
Arguments against the merger:
One of the more publicised reasons for the merger is that it will free the Railways of the obligation
of paying the annual dividend, as mentioned earlier. This is only partly true. The dividend is paid
not only on the budgetary support extended during a year but also on the total capital at charge
which includes the gross budgetary support (GBS) of previous years. By this merger, a loan-in-
perpetuity is converted to a grant. Thus it is akin to a loan waiver, and loan waivers are granted
to individuals or institutions in extreme financial distress
Budget is not merely a statement of allotment of funds to various projects and programmes,
unlike other ministries, but comprises a fairly detailed performance review, physical and
financial, of the previous year and prospects for the current Budget year. A separate post-Budget
discussion in Parliament on the Railways, as indicated by the Finance Minister, is no substitute,
as the focus most likely will be on allotments to various projects, not on financial performance
Railways is unlike any other Central ministry in size and scope: It is an operational ministry; it
earns as well as spends, unlike other ministries that only spend. Its gross earnings (Rs.1.68 lakh

crore in 2015-16) are among the highest for any Indian organisation, public or private; it has a
staff strength (13.2 lakh) that exceeds that of the Indian Army; it fully meets the pension liabilities
of its retired employees (13.8 lakh) out of its own earnings unlike other ministries; it follows an
accounting practice, though not up to the standards of a purely commercial establishment, that
has a number of features of a commercially-run organisation. So, if the Railways is to be treated
like other ministries, the question that crops up is whether the government would fund the
pension liabilities which are estimated to be about Rs.45,500 crore in 2016-17
Bibek Debroy committee recommendation to go for merger of railways budget with general
budget was accompanied with a slew of other reform measures such as complete overhaul of
the project financing architecture of the Railways involving ruthless weeding out of
unviable/long-pending projects; comprehensive accounting reforms; separation of infrastructure
and operations; and setting up of a rail regulatory authority. Pending these steps, each of which
is a major project in itself, the move to give a hasty send-off to the Railway Budget is perplexing
Bibek Debroy Committee on restructuring railways:
Move to internationally accepted commercial accounting systems

1. Easier to compute rate of return, will lead to more investment
2. Help calculate the impact of various policies on different services
Adopt good practices as per the principles of transaction cost economies
1. Focus on core areas, leave areas such as constructing schools for employees, cleanliness etc
2. Outsource and subsidize if necessary
Streamline recruitment and HR process

1. Currently through multiple channels. Streamline into technical and non technical
recruitment
Decentralization
1. Decision making authority for local projects to be transferred to DRMs and ADRMs
2. Allow the division to retain a part of the revenue earned for BPR
Creation of Indian Railway Manufacturing Company
1. Railway involved in various tasks such as manufacturing of coaches, berths, tracks etc
2. Transfer the ownership of these companies to public sector SPV IRMC which is
independent of railway ministrys control. Benefits will be
1. Narrowing of scope leads to lesser risk and better management of risk
2. Prevents parent company from bankruptcy
Easier to raise funds
1. Autonomy in deciding salaries etc
2. Problem in implementing this step is the huge no of people employed by railways in such
factories who would be up in arms against any such move
Encouraging Private sector entry in running freight and passenger trains
1. Currently Private sector not interested because of less capacity and they worry that tracks
will not be allocated to them
2. Recommended creation of a separate track holding company which will be neutral between
railways and Private players
3. Imp to note that government has allowed 100% fdi in all railway activities except for railway
operations. Through THC we will encourage Pvt entry while ensuring that operation remains
in the hand of THC
Independent regulator for railways
1. Shift regulatory activities from govt to an independent regulator as the private sector will
come only when there is a free and open access to infrastructure as well as fair tariffs
without cross subsidization. Dispute resolution will also be an imp function of these
regulators
2. Railway regulatory authority of India with an independent budget and outside control of
ministry as regulator for track and infra
3. Railway board as regulator for operating trains which will be only for Indian railways
Social costs and Joint Ventures to bear them
1. Creation of suburban lines through JV with state govt
2. Tariffs on such lines are usually subsidized, burden to be shared on 50:50 basis
3. Freight rate should be left to market , no cross subsidization
Same budget
1. End system of gross budgetary support to railways and dividend payment by railways
2. Merge railway ministry with transport ministry
3. Investment from new sources as described above
Raising resources
Enhancing investment in railways. 5l cr investtent over the next 5 years announced in last
years railway budget (2015-16)
Loans to be raised from international finance institutions like IFC and domestic finance
institutions like IRFC
PPP streamlining

Access to long term finance source like pensions, insurance funds

Reducing operating ratio
Leveraging balance sheets of railway sector units within railways
JVs with state govt
Existing railway assets to be leveraged to raise resources through models like InvITs
Conclusion:
The Centre needs to now seriously consider setting up an independent tariff regulator to depoliticise
fares. New lines and trains should be determined by economic viability rather than the constituencies
covered. Initiatives such as demand-driven clone trains must be deployed to boost earnings, and the
Rs.37,000-crore tab on social obligations, including concessional ticketing, must be borne by the
exchequer. The Railways accounts need to be cleaned up and made bankable. Scrapping the Rail
Budget is a good starting point to fix the fading utility. Bringing it back safely on track will take a lot
more doing, and undoing.

FG HFG HFDG Hfhgfs Hjhsjaj Jdy

Uploaded by

Document Information

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

FG HFG HFDG Hfhgfs Hjhsjaj Jdy

Uploaded by

Copyright:

Available Formats

INSIGHTS into EDITORIAL

INSIGHTS into EDITORIAL ___________________________________________________________ 2

Insights into Issues _______________________________________________________________ 64

www.insightsonindia.com 1 Insights IAS

INSIGHTS into EDITORIAL

01/12: Indias missing girl children

Why worry about this trend?

What has the government done to arrest this trend?

What needs to be taken care of?

www.insightsonindia.com 2 Insights IAS

What needs to be done now?

www.insightsonindia.com 3 Insights IAS

02/12: The message from Amritsar

Indias assistance to Afghanistan:

www.insightsonindia.com 4 Insights IAS

Why is India important for Afghanistan?

Why India should be interested in the development of Afghanistan?

India and Afghanistans Strategic Partnership Agreement should be effectively implemented as it

www.insightsonindia.com 5 Insights IAS

www.insightsonindia.com 6 Insights IAS

03/12: Making of a legislative court (National Anthem Issue)

The Supreme Court of India, recently, gave an order that the

This effectively reverses an earlier judgment of the

Whats the concern now?

www.insightsonindia.com 7 Insights IAS

What the constitution says in this regard?

Issues associated with this move:

There is no question that judicial independence is of paramount importance. Whatever scheme of

www.insightsonindia.com 8 Insights IAS

06/12: CBI Role of Director, Reforms in its Functions

What the law says?

www.insightsonindia.com 9 Insights IAS

Problems associated with CBI:

SC over CBIs autonomy:

What needs to be done?

www.insightsonindia.com 10 Insights IAS

07/12: Jagjit Singh Case Contract Workers vs Permanent Workers

In a significant judgment in the Jagjit Singh Case, the Supreme

Important observations made by the court:

www.insightsonindia.com 11 Insights IAS

Significance of this judgment:

Whats the concern now?

www.insightsonindia.com 12 Insights IAS

Why SC verdict would have little impact?

What the law says?

www.insightsonindia.com 13 Insights IAS

08/12: Demonetization, Election Commission and Electoral Reforms

India today stands as a model for emerging democracies across

How bad is the problem?

System of election financing in India:

www.insightsonindia.com 14 Insights IAS

What reforms are needed?

www.insightsonindia.com 15 Insights IAS

09/12: India and Oil Prices

Global commodity prices saw a dip but

The prices peaked in 2012 when the

Why there was decrease in oil prices?

Oversupply in the international markets due to decrease in Chinese demand.

Why oil prices may go up now?

www.insightsonindia.com 16 Insights IAS

How low crude oil prices benefitted India?

How will rise in crude oil prices affect India?

What needs to be done?