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  • JDY or NREGA card: What is better option for cash transfers?

    JAM Trinity is one of the flagship policy of the government. In times of COVID crisis, this article highlights some limits of JAM trinity. Issues of inclusion error, exclusion error and even problem of transparency with JAM accounts are discussed. The NREGA cards instead of Jan Dhan account is suggested as the better option. Why is it so? Read to know more…

    High hopes from JAM

    • The original formulation, in 2015, mentioned two possible forms of the JAM trinity: mobile banking and post office payments.
    • The second option never made much progress.
    • So, Aadhaar-enabled mobile banking became the supreme goal.
    • In January 2017, NITI Aayog CEO Amitabh Kant predicted the imminent demise of all cash-transfer paraphernalia other than mobiles.
    • These hopes reached new heights as the JAM project latched on to another flourishing narrative, universal basic income (UBI).
    • If you want to make cash transfers to everyone, what better platform can you have than Aadhaar, India’s unique biometric ID, doubling up as a permanent financial address?

    Corona crisis belied the hopes from JAM

    • In the early days of the crisis, JAM was often invoked sometimes along with UBI as a possible tool of emergency relief.
    • But when the time actually came to make cash transfers to the poor, JAM turned out to be of little use.
    • The JAM had not gone beyond some fancy digital-payment systems for the privileged.
    • Poor people were still running from pillar to post to collect their meagre benefits from old-fashioned bank accounts.
    • Some also use the services of “business correspondents”, but those have little to do with JAM.
    • Sure enough, long bank queues and related hardships started to emerge, especially in rural areas where the density of banks is relatively low.
    • In a Dalberg survey conducted last month in 10 states, only 25% of poor households reported that it was “easy” to access cash benefits.

    NREGA job Cards: A better option than Jan Dhan Account

    • The lead cash-relief measure in the national relief package consists of monthly transfers of ₹500 to women’s JDY accounts.
    • But is that a good idea?
    • Let’s compare women’s JDY accounts with another possible basis for cash transfers, at least in rural areas: the list of households that have a National Rural Employment Guarantee Act (NREGA) job card.
    • The numbers of accounts are roughly comparable: about 14 crore for NREGA job cards, and 12 crore or so for women’s JDY accounts in rural and semi-urban.

    JDY approach fares poorly on the following 3 counts

    1. Lack of transparency and clarity

    • JDY accounts are a mighty mess – the NREGA job-cards list is far more transparent and well-organised. 
    • During the frantic initial JDY wave, in 2014-15, banks opened JDY accounts en masse to meet the targets. Banking norms were not followed always.
    • Later on, a large proportion of JDY accounts – 40% in March 2017, down to 19% in January 2020– went “dormant” as customers were unable or unwilling to use them.

    2. Large exclusion error

    • The cash transfers to women’s JDY accounts are likely to involve large exclusion errors.
    • According to a recent Yale study, less than half of poor adult women have a JDY account, an even lower proportion, 21%, know that they have a JDY account.
    • The NREGA job-card list is likely to have much better coverage of poor households.
    • The natural complementarity between NREGA and social security pensions covering more than four crore persons under the National Social Assistance Programme alone would further help to reduce exclusion errors.

    3. Large inclusion error

    • Inclusion errors are also likely to be larger in the JDY approach.
    • Job cards are meant for rural workers, JDY accounts are for everyone.
    • National Election Studies 2019 data show that JDY beneficiaries tend to be better-off than NREGA beneficiaries. ( and still, they would get benefits i.e. inclusion error)
    • Earlier survey data suggest that the probability of having a JDY account is more or less the same for poor and non-poor households.

    Comparison on reliability basis

    • There have been significant issues e.g. delayed, rejected, blocked or diverted payments with NREGA payments, often related to Aadhaar.
    • But then, numerous “direct benefit transfer” schemes –social security pensions, scholarships, maternity benefits, among others have faced similar problems, also reflected in official transaction data.
    • Both the Aadhaar Payment Bridge System(APBS) and the Aadhaar-enabled Payment System (AePS) are shot through with technical glitches.
    • Transfers to women’s JDY accounts are unlikely to be more reliable than transfers to job-card holders.

    Cash in hand option

    • As far as effective payment is concerned, there is a further argument in favour of the NREGA job-cards list.
    • Unlike JDY accounts, it lends itself to the “cash-in-hand” method on-the-spot payment in cash, instead of bank payments as a possible fallback.
    • The reason is that the job-cards list is a transparent, recursive household list with village and gram panchayat identifiers, while the list of JDY accounts is an opaque list of individual bank accounts.
    • Cash-in-hand may seem like the antithesis of JAM, but this option may become important in the near future if the banking system comes under further stress.
    • There are precedents of effective use of the cash-in-hand method, notably in Odisha for pension payments, and in various states for NREGA wage payments.
    • Several states including Andhra Pradesh, Odisha and Tamil Nadu have already resorted to cash-in-hand for relief payments during the lockdown.

    Consider the question, ” The need for financial inclusion is far more in times of corona crisis. Discuss opportunities and challenges with respect to policies like JAM trinity during corona pandemic. Suggest other alternatives for such transfers.”

    Conclusion

    There is nothing compelling about the use of women’s JDY accounts for cash relief. In fact, it is a bit of a shot in the dark. The government do well to consider other options for further relief majors, including a switch to the NREGA job-cards list in rural areas.

  • India-Nepal dispute over Kalapani Region

    Nepal has protested against India’s inauguration of a Himalayan link road built in a disputed territory which falls at a strategic three-way junction with Tibet and China. Kathmandu claims the highly strategic areas of Limpiyadhura and Kalapani, although Indian troops have been deployed there since the 1962 war.

    Practice question for mains:

    Q. The India-Nepal bilateral relations these days are increasingly seen through the lens of China factor. Examine.

    Kalapani Region

    • Mapped within Uttarakhand is a 372-sq km area called Kalapani, bordering far-west Nepal and Tibet.
    • A treaty signed between Nepal and British India in 1816 determined the Makhali river, that runs through Kalapani, as the boundary between the two neighbours.
    • The Treaty of Sugauli concluded between British India and the Kingdom of Nepal in the year 1816, maps the Makhali river as the western boundary with India but different British maps showed the source of the tributary at different places which was mainly due to underdeveloped and less-defined surveying techniques used at that time.
    • However, the river has many tributaries that meet at Kalapani. For this reason, India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.
    • While the Nepal government and political parties have protested, India has said the new map does not revise the existing boundary with Nepal.
    • India claims that the river begins at Kalapani but Nepal says that it begins from Lipu Lekh pass, which is the source of most of its tributaries.

    Legal Dimension of Issue

    According to International Laws, the principles of avulsion and accretion are applicable in determining the borders when a boundary river changes course.

    • Avulsion: It is the pushing back of the shoreline by sudden, violent action of the elements, perceptible while in progress. Also it can be defined as the sudden and perceptible change in the land brought about by water, which may result in the addition or removal of land from a bank or shoreline.
    • Accretion: It is the process of growth or enlargement by a gradual buildup. It is the natural, slow and gradual deposit of soil by the water.

    If the change of the river course is rapid – by avulsion – the boundary does not change. But if the river changes course gradually – that is, by accretion – the boundary changes accordingly.

    Since, the Gandak change of course has been gradual, India claimed Susta as part of their territory as per international laws.

    • On several occasions, India has tried to resolve the issue through friendly and peaceful negotiations, but the Nepali leadership has always shown hesitation in resolving the issue.
    • In Nepal, the issue has become a tool for arousing strong public sentiment against India. Therefore, resolving the issue may not be in the best interest of Nepal’s domestic politics.

    Significance for India

    • The Lipu Lekh pass serves strategic importance for India as a key point to monitor Chinese troop movement.
    • The link road via Lipulekh Himalayan Pass is also considered one of the shortest and most feasible trade routes between India and China.
    • The Nepalese reaction would probably have triggered in response to Chinese assertion.

    An undefined boundary claimed by Nepal

    • Nepal’s western boundary with India was marked out in the Treaty of Sugauli between the East India Company and Nepal in 1816.
    • Nepali authorities claim that people living in the low-density area were included in the Census of Nepal until 58 years ago.
    • Five years ago, Nepali Foreign Minister Mahendra Bahadur Pande claimed that the late King Mahendra had “handed over the territory to India”.
    • By some accounts in Nepal, this allegedly took place in the wake of India-China War of 1962.

    Treaty of Saguali

  • GI tag for Sohrai Khovar painting, Telia Rumal

    Jharkhand’s Sohrai Khovar painting and Telangana’s Telia Rumal were given the Geographical Indication (GI) tag by the Geographical Indications Registry.

    This year, many GI tags have been allocated. A few of them to count are- Kashmir saffron, Manipur black rice, Gorakhpur terracotta, Kovilpatti kadalai mittai etc.  Check here for more.

    Sohrai Khovar painting

    • The Sohrai Khovar painting is a traditional and ritualistic mural art being practised by local tribal women in the area of Hazaribagh district of Jharkhand.
    • The painting is primarily being practised only in the district of Hazaribagh. However, in recent years, for promotional purposes, it has been seen in other parts of Jharkhand.
    • It is prepared during local harvest and marriage seasons using local, naturally available soils of different colours in the area.
    • Traditionally painted on the walls of mud houses, they are now seen on other surfaces, too.
    • The style features a profusion of lines, dots, animal figures and plants, often representing religious iconography.
    • In recent years, the walls of important public places in Jharkhand, such as the Birsa Munda Airport in Ranchi, and the Hazaribagh and Tatanagar Railway Stations, among others, have been decorated with these paintings.

    Telia Rumal

    • Telia Rumal cloth involves intricate handmade work with cotton loom displaying a variety of designs and motifs in three particular colours — red, black and white.
    • The Rumal can only be created using the traditional handloom process and not by any other mechanical means as otherwise, the very quality of the Rumal would be lost.
    • During the Nizam’s dynasty, Puttapaka, a small, backward village of the Telangana region of Andhra Pradesh had about 20 families engaged in handloom weaving, who were patronized by rich families and the Nizam rulers.
    • The officers working in the court of the Nizam would wear the Chituki Telia Rumal as a symbolic representation of status.
    • Telia Rumals were worn as a veil by princesses at the erstwhile court of the Nizam of Hyderabad, and as a turban cloth by Arabs in the Middle East.

    Back2Basics: Geographical Indications in India

    • A Geographical Indication is used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Such a name conveys an assurance of quality and distinctiveness which is essentially attributable to its origin in that defined geographical locality.
    • This tag is valid for a period of 10 years following which it can be renewed.
    • Recently the Union Minister of Commerce and Industry has launched the logo and tagline for the Geographical Indications (GI) of India.
    • The first product to get a GI tag in India was the Darjeeling tea in 2004.
    • The Geographical Indications of Goods (Registration and Protection) Act, 1999 (GI Act) is a sui generis Act for protection of GI in India.
    • India, as a member of the WTO enacted the Act to comply with the Agreement on Trade-Related Aspects of Intellectual Property Rights
    • Geographical Indications protection is granted through the TRIPS Agreement.

  • [pib] Atmanirbhar Bharat Abhiyan (Self-reliant India Mission)

    The PM has announced the Atma-nirbhar Bharat Abhiyan (or Self-reliant India Mission) and said that in the days to come the government would unveil the details of an economic package — worth Rs 20 lakh crore or 10% of India’s GDP in 2019-20 — aimed towards achieving this mission.

    Try a question:

    ‘Doubling Farmer’s Income’ and ‘USD 5 trillion economy’  seems more like slogans today in wake of COVID pandemic. Comment on the statement with keeping in view the Atmanirbhar Bharat Abhiyan of the government.

    Atmanirbhar Bharat: With a special package

    • PM has announced a special economic package and gave a clarion call for Self-reliant India.
    • The package will provide a much-needed boost towards achieving self-reliance.
    • This package, taken together with earlier announcements by the government during COVID crisis and decisions taken by RBI, is to the tune of Rs 20 lakh crore, which is equivalent to almost 10% of India’s GDP.
    • The package will also focus on land, labour, liquidity and laws. It will cater to various sections including cottage industry, MSMEs, labourers, middle class, and industries, among others.

    Five pillars of a self-reliant India

    PM iterated that a self-reliant India will stand on five pillars viz.

    1) Economy, which brings in quantum jump and not incremental change

    2) Infrastructure, which should become the identity of India

    3) System, based on 21st-century technology-driven arrangements

    4) Vibrant Demography, which is our source of energy for a self-reliant India and

    5) Demand, whereby the strength of our demand and supply chain should be utilized to full capacity

    Is this a new package?

    • The PM did not give the details, but he specified that this calculation of Rs 20 lakh crore includes what the government has already announced and the steps taken by the RBI.
    • This means the total amount of additional money — that is over and above what the government would have spent even in the absence of a Covid crisis — will not be Rs 20 lakh crore.
    • It would be substantially less.

    Why?

    • That’s because the PM has included the actions of RBI, India’s central bank, as part of the government’s “fiscal” package, even though only the government controls the fiscal policy and not the RBI (which controls the ‘monetary’ policy).
    • Government expenditure and RBI’s actions are neither the same nor can they be added in this manner.

    What did the RBI provide earlier?

    • A rough estimate suggests that the RBI’s decisions have provided additional liquidity of Rs 5-6 lakh crore since the start of the Covid-19 crisis.
    • Add this to the Rs 1.7 lakh crore of the first fiscal relief package announced by the Centre on March 26. Together, the two already account for 40 per cent of the Rs 20-lakh crore package.
    • That leaves an effective amount of Rs 12 lakh crore.
    • However, if the government is including RBI’s liquidity decisions in the calculation, then the actual fresh spending by the government could be considerably lower than Rs 12 lakh crore.
    • That’s because RBI has been coming out with long term bond-buying operations (long term repo operation or LTRO, to infuse liquidity into the banking system) worth Rs 1 lakh crore at a time.
    • If for argument’s sake, RBI comes out with another LTRO of Rs 1 lakh crore, then the overall fiscal help falls by the same amount.

    Why shouldn’t RBI’s package be included in the overall package?

    • That is because direct expenditure by a government — either by way of wage subsidy or direct benefit transfer or any, immediately and necessarily stimulates the economy.
    • In other words, that money necessarily reaches the people — either as someone’s salary or someone’s purchase.
    • But credit easing by the RBI — that is, making more money available to the banks so that they can lend to the broader economy — is not like government expenditure.
    • That’s because, especially in times of crisis, banks may take that money from RBI and elsewhere and, instead of lending it, park it back with the RBI.

    Back2Basics: Long Term Repo Operations (LTRO)

    • The LTRO is a tool under which the RBI provides 1-3 year money to banks at the prevailing repo rate, accepting government securities with matching or higher tenure as the collateral.
    • Funds through LTRO are provided at the repo rate.
    • But usually, loans with higher maturity period (here like 1 year and 3 years) will have a higher interest rate compared to short term (repo) loans.
    • According to the RBI, the LTRO scheme will be in addition to the existing Liquidity Adjustment Facility (LAF) and the Marginal Standing Facility (MSF) operations.
    • The LAF and MSF are the two sets of liquidity operations by the RBI with the LAF having a number of tools like repo, reverse repo, term repo etc.

    What are Repo and Reverse Repo rates?

    • The repo rate is the rate at which the RBI lends money to the banking system (or banks) for short durations.
    • The reverse repo rate is the rate at which banks can park their money with the RBI.
    • With both kinds of the repo, which is short for repurchase agreement, transactions happen via bonds — one party sells bonds to the other with the promise to buy them back (or repurchase them) at a later specified date.
    • In a growing economy, commercial banks need funds to lend to businesses.
    • One source of funds for such lending is the money they receive from common people who maintain savings deposits with the banks. Repo is another option.

  • [pib] CHAMPIONS Portal for Indian MSMEs

    In a major initiative, Union Ministry of MSME has launched CHAMPIONS portal for assisting Indian MSMEs march into the big league as National and Global Champions.

    MSME sector has been hit badly by COVID. Initiatives like CHAMPIONS portal are crucial for this sector.

    CHAMPIONS Portal

    • ‘CHAMPIONS’ is a technology-driven Control Room-Cum-Management Information System.
    • The CHAMPIONS is an acronym for Creation and Harmonious Application of Modern Processes for Increasing the Output and National Strength
    • As the name suggests, the portal is basically for making the smaller units big by solving their grievances, encouraging, supporting, helping and handholding.
    • It is a technology-packed control room-cum-management information system.

    Three basic objectives of the CHAMPIONS

    1) How to help the MSMEs in this difficult situation in terms of finance, raw materials, labour, permissions, etc.

    2) How to help them capture new opportunities like manufacturing of medical accessories and products like PPEs, masks, etc.

    3) How to identify the sparks, i.e., the bright MSMEs who can not only withstand but can also become national and international champions.

    Technology imbibed in the portal

    • In addition to ICT tools including telephone, internet and video conference, the system is enabled by Artificial Intelligence, Data Analytics and Machine Learning.
    • It is also fully integrated on a real-time basis with GOI’s main grievances portal CPGRAMS and MSME Ministry’s own other web-based mechanisms.
    • The entire ICT architecture is created in house with the help of NIC in no cost. Similarly, the physical infrastructure is created in one of the ministry’s dumping rooms in record time.

     A hub and spoke model of network

    • As part of the system, a network of control rooms is created in a Hub & Spoke Model.
    • The Hub is situated in New Delhi in the Secretary MSME’s office.
    • The spokes will be in the States in various offices and institutions of Ministry.
    • As of now, 66 state-level control rooms are created as part of the system.

  • What is the Sample Registration System (SRS)?

    The Registrar General of India released its Sample Registration System (SRS) bulletin based on data collected for 2018.

    Since we are talking about birth rates and death rates, how about revising Demographic Transition Model. Can you recall 4 distinctive stages of Indian Demographic history?

    Sample Registration System (SRS)

    • The SRS is a demographic survey for providing reliable annual estimates of infant mortality rate, birth rate, death rate and other fertility and mortality indicators at the national and sub-national levels.
    • Initiated on a pilot basis by the Registrar General of India in a few states in 1964-65, it became fully operational during 1969-70.
    • The field investigation consists of a continuous enumeration of births and deaths in selected sample units by resident part-time enumerators, generally Anganwadi workers and teachers; and an independent retrospective survey every six months by SRS supervisors.
    • The data obtained by these two independent functionaries are matched.

    Highlights of the data

    Birth and death rates

    • According to the data released the national birth rate in 2018 stood at 20, and death and infant mortality rates stood at 6.2 and 32, respectively.
    • The rates are calculated per one thousand of the population.
    • Madhya Pradesh has the worst infant mortality rate in the country while Nagaland has the best.
    • Chhattisgarh has the highest death rate, while Delhi has the lowest.
    • Bihar continues to remain at the top of the list in the birth rate while Andaman and Nicobar are at the bottom.

    Infant mortality

    • The data shows that against the national infant mortality rate (IMR) of 32, Madhya Pradesh has an IMR of 48 and Nagaland 4.
    • Bihar has the highest birth rate at 26.2 and Andaman and Nicobar Islands has a birth rate of 11.2.
    • Chhattisgarh has the highest death rate at 8 and Delhi, an almost entirely urban state, has a rate of 3.3, indicating better healthcare facilities.
    • As far as IMR is concerned, the present figure of 32 is about one-fourth as compared to 1971 (129).
    • In the last 10 years, IMR has witnessed a decline of about 35 per cent in rural areas and about 32 per cent in urban areas. T

    Birth rate

    • The birth rate is a crude measure of fertility of a population and a crucial determinant of population growth.
    • India’s birth rate has declined drastically over the last four decades from 36.9 in 1971 to 20.0 in 2018.
    • The rural-urban differential has also narrowed. However, the birth rate has continued to be higher in rural areas compared to urban areas in the last four decades.
    • There has been about an 11 per cent decline in the birth rate in the last decade, from 22.5 in 2009 to 20.0 in 2018. The corresponding decline in rural areas is 24.1 to 21.6, and in urban areas, it is 18.3 to 16.7.

  • Pokhran-II nuclear tests

    Yesterday, May 11 was celebrated as the National Technology Day. It marks the day on which India successfully test-fired its first nuclear bombs in 1998.

    Practice question for mains

    Q. India’s nuclear policy of ‘No First Use’ needs a revamp. Examine.

    India and nuclear weapons

    • India is currently among eight countries in the world that have a publicly known nuclear weapons program.
    • At the time of our independence, leaders were opposed to fully embracing nuclear weapons.
    • Just two years before in 1945, the world had witnessed the horrific nuclear bombings of Hiroshima and Nagasaki.
    • Mahatma Gandhi called the use of nuclear weapons morally unacceptable.

    Why India did equip itself with nuclear arms?

    • Then PM Jawaharlal Nehru was sceptical but kept the door open for future consideration.
    • This future beckoned early, as India’s defeat in the 1962 Sino-Indian War gave rise to legitimate fears about national security.
    • Then in 1974, India conducted its first nuclear test, codenamed “Smiling Buddha”, at Pokhran in Rajasthan.
    • Then-Prime Minister Indira Gandhi called the test a peaceful nuclear explosion.
    • India demonstrated to the world that the country could defend itself in an extreme situation and chose not to immediately weaponize the nuclear device it tested at Pokhran.

     The Pokhran II tests

    • India’s fence-sitting finally ended when it detonated another device in 1998, again at Pokhran.
    • Assigned the code name Operation Shakti, the mission was initiated on May 11, 1998.
    • The tests consisted of 5 detonations, the first being a fusion bomb while the remaining four were fission bombs.
    • One fusion and two fission bombs were tested on May 11, and two more fission bombs on May 13.
    • With the tests, India achieved its objective of building fission and thermonuclear weapons with yields up to 200 kilotons.

    Aftermath

    • After Pokhran-II, Vajpayee had declared India a nuclear state — then the sixth country in the world to join this league.
    • Unlike in 1974, India had this time chosen to actively develop its nuclear capabilities, and the tests followed economic sanctions by the United States and Japan. The sanctions were later lifted.

    Back2Basics: India’s nuclear programme

    • India started its own nuclear programme in 1944 when Homi Jehangir Bhabha founded the Tata Institute of Fundamental Research.
    • Physicist Raja Ramanna played an essential role in nuclear weapons technology research; he expanded and supervised scientific research on nuclear weapons and was the first directing officer of the small team of scientists that supervised and carried out the test.
    • After independence, PM Nehru authorised the development of a nuclear programme headed by Homi Bhabha.
    • The Atomic Energy Act of 1948 focused on peaceful development.
    • India was heavily involved in the development of the Nuclear Non-Proliferation Treaty but ultimately opted not to sign it.
    • In 1954, two important infrastructure projects were commissioned. The first established Trombay Atomic Energy Establishment at Mumbai (Bombay). The other created a governmental secretariat, Department of Atomic Energy (DAE), of which Bhabha was the first secretary.

    Nuclear Suppliers Group (NSG)

    • The NSG is a multilateral export control regime and a group of nuclear supplier countries that seek to prevent nuclear proliferation by controlling the export of materials, equipment and technology that can be used to manufacture nuclear weapons.
    • The NSG was founded in response to the Indian nuclear test in May 1974 and first met in November 1975.
    • It was solely aimed to deny advanced technology, and isolate and contain India.

  • Person in news: Gopal Krishna Gokhale

    The Prime Minister has paid tributes to Gopal Krishna Gokhale on his birth anniversary.

    These days, personality-based prelims questions are quite prevalent.

    Q.) He wrote biographies of Mazzini, Garibaldi, Shivaji and Shri Krishna; stayed in America for some time; and was also elected to the Central Assembly. He was – (CSP 2018)

    a) Aurobindo Ghosh

    b) Bipin Chandra Pal

    c) Lala Lajpat Rai

    d) Motilal Nehru

    Gopal Krishna Gokhale (1866-1915)

    • Gokhale was a liberal political leader and a social reformer during the Freedom Movement.
    • Gokhale was a senior leader of the Indian National Congress (INC) and the founder of the Servants of India Society.
    • Through the Society as well as the Congress and other legislative bodies he served in, Gokhale campaigned for Indian self-rule and for social reforms.

    Gokhale and INC

    • Gokhale became a member of the INC in 1889, as a protégé of social reformer MG Ranade.
    • He was the leader of the moderate faction of the Congress party that advocated reforms by working with existing government institutions.

    Quest for political reforms

    • Gokhale’s mentor, justice M.G. Ranade started the Sarvajanik Sabha Journal.
    • Gokhale’s deposition before the Welby Commission on the financial condition of India won him accolades.
    • He played a leading role in bringing about Morley-Minto Reforms (1909), the beginning of constitutional reforms in India.

    Servants of India Society

    • In 1905, when Gokhale was elected president of the INC and was at the height of his political power, he founded the Servants of India Society.
    • It aimed to specifically further one of the causes dearests to his heart: the expansion of Indian education.
    • The Society took up the cause of promoting Indian education in earnest, and among its many projects organised mobile libraries, founded schools, and provided night classes for factory workers.

    Involvement in the government

    • In 1899, Gokhale was elected to the Bombay Legislative Council.
    • He was also elected to the Imperial Council of the Governor-General of India as a non-officiating member representing Bombay Province.

    Mentor to Gandhi

    • Gokhale was famously a mentor to Mahatma Gandhi in the latter’s formative years.
    • In 1912, Gokhale visited South Africa at Gandhi’s invitation.
    • As a young barrister, Gandhi returned from his struggles and received personal guidance from Gokhale, including a knowledge and understanding of India and the issues confronting common Indians.
    • By 1931, Gandhi emerged as the leader of the Indian Independence Movement. In his autobiography, Gandhi calls Gokhale his mentor and guide.

    His literary works

    • In 1908, Gokhale founded the Ranade Institute of Economics.
    • He started the English weekly newspaper, The Hitavad (The people’s paper).
    • He also published a daily newspaper titled Jnanaprakash, which allowed him to voice his reformist views on politics and society.

    With inputs from https://en.wikipedia.org/wiki/Gopal_Krishna_Gokhale

  • [pib] Atal Pension Yojana:  Marking 5 Years of Implementation

    The flagship social security scheme ‘Atal Pension Yojana’ (APY) has completed five years of successful implementation.

    Five years of successfull implemention of APY is a significant feat. A statement based prelims question on terms of enrolment of the APY can be asked.

    Atal Pension Yojana

    • APY is a government-backed pension scheme, primarily targeted at the unorganised sector.
    • It is a social security scheme launched by the government on 9th May 2015 to provide a defined pension between Rs 1,000 to Rs 5,000.
    • It aims of delivering old age income security particularly to the workers in the unorganised sector with a guarantee of minimum pension after 60 years of age.

    Terms of enrolment

    • APY can be subscribed by any Indian citizen in the age group of 18-40 years having a bank account and its uniqueness is attributable to three distinctive benefits.
    • First, it provides a minimum guaranteed pension ranging from Rs 1000 to Rs 5000 on attaining 60 years of age,
    • Secondly, the amount of pension is guaranteed for a lifetime to spouse on death of the subscriber.
    • And lastly, in the event of the death of both the subscriber and the spouse, entire pension corpus is paid to the nominee.

    Success of the scheme

    • The scheme has now 2.23 crores enrolment.
    • Apart from remarkable enrolments, the scheme has been implemented comprehensively across the country covering all states and UTs with male to a female subscription ratio of 57:43.

    About PFRDA

    • Pension Fund Regulatory and Development Authority (PFRDA) is the statutory authority established by an enactment of the Parliament.
    • It aims to regulate, promote and ensure orderly growth of the National Pension System (NPS) and pension schemes to which this Act applies.
    • NPS was initially notified for central government employees recruits w.e.f. 1st Jan 2004 and subsequently adopted by almost all State Governments for its employees.
    • NPS was extended to all Indian citizens (resident/non-resident/overseas) on a voluntary basis and to corporates for its employees.

  • Explained: How can Inter-State workers be protected?

    Context

    • Following the novel coronavirus pandemic, the nationwide lockdown announced on March 24 at short notice has caused immense distress to migrant workers around the country.
    • Hundreds have been seen trying to walk home to Uttar Pradesh, Bihar, West Bengal and Odisha from their places of work in Rajasthan, Delhi, Maharashtra, Gujarat and so forth.

    Try a mains question on this issue:

    Inter state migrants face social, economic and cultural shocks. Discuss some steps taken by center and state governments. Also suggest further reforms.

    Inter-State workers: Where is their almighty?

    • Recently, 16 migrant labourers who were trying to return to Madhya Pradesh, their home State, on foot were killed when a goods train ran over them.
    • Questions are being raised about their welfare and the lack of legal protection for their rights.
    • Those working in the field of labour welfare have recalled a 1979 law to regulate the employment and working conditions of inter-State migrants.
    • The lack of serious implementation has led to their rights being ignored.

    What about occupational safety?

    • As part of the present regime’s efforts towards consolidating and reforming labour law, a Bill has been introduced in Parliament called the Occupational Safety, Health and Working Conditions Code, 2019.
    • The proposed code seeks to merge 13 labour laws into a single piece of legislation.
    • The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979, is one of them.
    • Activists fear that specific safeguards given to migrant workers may be lost as a result of this consolidation.

    Inter-State Migrant Workmen Act, 1979: What does the law envisage?

    • The Act seeks to regulate the employment of inter-State migrants and their conditions of service.
    • It is applicable to every establishment that employs five or more migrant workmen from other States; or if it had employed five or more such workmen on any day in the preceding 12 months.
    • It is also applicable to contractors who employed a similar number of inter-State workmen.
    • The Act would apply regardless of whether the five or more workmen were in addition to others employed in the establishment or by the contractors.
    • It envisages a system of registration of such establishments. The principal employer is prohibited from employing inter-State workmen without a certificate of registration from the relevant authority.
    • The law also lays down that every contractor who recruits workmen from one State for deployment in another State should obtain a licence to do so.

    What are the beneficial provisions for inter-State migrants in it?

    • The provision for registration of establishments employing inter-State workers creates a system of accountability and acts as the first layer of formalizing the utilization of their labour.
    • It helps the government keep track of the number of workers employed and provides a legal basis for regulating their conditions of service.
    • As part of the licensing process, contractors are bound by certain conditions.
    • These include committing them to provide terms and conditions of the agreement or any other arrangement on the basis of which they recruit workers.
    • In no case, shall the wages be lower than what is prescribed under the Minimum Wages Act.

    What does the proposed Code say on migrant workers?

    • The attempt to consolidate laws relating to occupational safety, health and working conditions means that many separate laws concerning various kinds of workers and labourers will have to be repealed.
    • The proposed law seeks to repeal 13 Acts such as the Factories Act, Mines Act, Dock Workers’ Act, the Inter-State Migrant Workmen Act, and other enactments relating to those working in plantations, construction, cinema, beedi and cigarette manufacture, motor transport, and the media.

    What does the news law promise for migrant workers?

    • Regarding inter-State migrant workers, the Act includes them in the definition of ‘contract labour’.
    • At the same time, an inter-State migrant worker is also separately defined as a person recruited either by an employer or a contractor for an establishment situated in another State.
    • The Code has a chapter on ‘contract labour and inter-State migrant workers’, but the Parliamentary Standing Committee has recommended that the provisions relating to migrant workers be covered in a separate chapter.
    • The Code contains provisions similar to the 1979 Act regarding registration of establishments, licensing of contractors and the inclusion of terms and conditions on hours of work, wages and amenities.
    • Further, both the old Act and the proposed Code envisage the payment of a displacement allowance and a journey allowance to inter-State migrant workers.

    Trade Union’s response

    • Even though the Code seeks to preserve many of the protections and rights are given to inter-State workers, trade unions feel that it is always better to have a separate enactment.
    • The unprecedented distress and misery faced by migrant workers due to the current lockdown have drawn attention to beneficial legislation dedicated to their welfare.
    • The Centre of Indian Trade Unions (CITU) has highlighted the fact that both the States where they work and home States have obligations cast upon them in the existing law.
    • Despite the fact that it has been poorly implemented at all, labour unions feel that preserving the separate enactment and enforcing it well is a better option than subsuming it under a larger code.