Note4Students
From UPSC perspective, the following things are important :
Prelims level: Essential Commodities
Mains level: Essential Commodities (Amendment) Bill, 2020
Recently, the Rajya Sabha passed the Essential Commodities (Amendment) Bill, 2020 which is aimed at deregulating commodities such as cereals, pulses, oilseeds, edible oils, onion and potatoes.
Try this question:
What are the salient features of Essential Commodities (Amendment) Bill, 2020?
Essential Commodities (Amendment) Bill, 2020
- It amends the Essential Commodities Act, 1955, by introducing a new Subsection 1(A) in Section 3.
- After the amendment, the supply of certain foodstuffs — including cereals, pulses, oilseeds, edible oils, potato — can be regulated only under extraordinary circumstances, which include an extraordinary price rise, war, famine, and natural calamity of a severe nature.
- In effect, the amendment takes these items out from the purview of Section 3(1), which gives powers to the central government to “control production, supply, distribution, etc, of essential commodities”.
- Earlier, these commodities were not mentioned under Section 3(1) and reasons for invoking the section were not specified.
How is an ‘essential commodity’ defined?
- There is no specific definition of essential commodities in the Essential Commodities Act, 1955. Section 2(A) states that an “essential commodity” means a commodity specified in the Schedule of the Act.
- The Act gives powers to the central government to add or remove a commodity in the Schedule.
- The Centre, if it is satisfied that it is necessary to do so in the public interest, can notify an item as essential, in consultation with state governments.
Which are those commodities?
- According to the Ministry of Consumer Affairs, Food and Public Distribution, which implements the Act, the Schedule at present contain seven commodities.
- They are drugs; fertilizers, whether inorganic, organic or mixed; foodstuffs including edible oils; hank yarn made wholly from cotton; petroleum and petroleum products; raw jute and jute textiles; seeds of food-crops and seeds of fruits and vegetables, seeds of cattle fodder, jute seed, cottonseed.
- By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.
Under what circumstances can the government impose stock limits?
- While the 1955 Act did not provide a clear framework to impose stock limits, the amended Act provides for a price trigger.
- It says that agricultural foodstuffs can only be regulated under extraordinary circumstances such as war, famine, extraordinary price rise, and natural calamity.
- However, any action on imposing stock limits will be based on the price trigger.
- Thus, in case of horticultural produce, a 100% increase in the retail price of a commodity over the immediately preceding 12 months or over the average retail price of the last five years, whichever is lower, will be the trigger for invoking the stock limit.
- For non-perishable agricultural foodstuffs, the price trigger will be a 50% increase in the retail price of the commodity over the immediately preceding 12 months or over the average retail price of the last five years, whichever is lower.
Why was the need for this felt?
- The 1955 Act was legislated at a time when the country was facing a scarcity of foodstuffs due to persistently low levels of foodgrains production.
- The country was dependent on imports and assistance (such as wheat import from the US under PL-480) to feed the population.
- To prevent hoarding and black marketing of foodstuffs, the Essential Commodities Act was enacted in 1955. But now the situation has changed.
- The production of wheat has increased 10 times while the production of rice has increased more than four times since five decades.
- The production of pulses has increased 2.5 times, from 10 million tonnes to 25 million tonnes. In fact, India has now become an exporter of several agricultural products.
What will be the impact of the amendments?
- The key changes seek to free agricultural markets from the limitations imposed by permits and mandis that were originally designed for an era of scarcity.
- The move is expected to attract private investment in the value chain of commodities removed from the list of essentials, such as cereals, pulses, oilseeds, edible oils, onions and potatoes.
- While the purpose of the Act was originally to check illegal trade practices such as hoarding, it has now become a hurdle for investment in the agriculture sector in general, and in post-harvesting activities in particular.
- The private sector had so far hesitated about investing in cold chains and storage facilities for perishable items as most of these commodities were under the ambit of the EC Act.
- The amendment seeks to address such concerns.
Why is it being opposed?
- This was one of the three ordinances/Bills that have seen protests from farmers in parts of the country.
- The Opposition says the amendment will hurt farmers and consumers, and will only benefit hoarders.
- They say the price triggers envisioned in the Bill are unrealistic — so high that they will hardly ever be invoked.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SAARC
Mains level: Paper 2- South Asian countries' response to pandemic
The article analyses how South Asia is dealing with the pandemic and the need for coordinated action by the countries across the region.
Varying response across the region
- Governments in South Asian countries have responded in varying degrees to counter the health and economic crises.
- India resumed its economic activities on a limited scale following a strict lockdown.
- Bangladesh, Nepal, Pakistan and Sri Lanka did the same after an extended lockdown.
- Bhutan and the Maldives have managed to largely contain community transmission and avoid prolonged lockdowns due to a higher testing rate.
- This is consistent with the hypothesis that countries that have conducted more tests have been more successful in containing the pandemic.
Low mortality in the region
- Unlike other regions, South Asian countries are experiencing a lower mortality rate despite having a higher infection rate.
- However, epidemiological studies and the World Health Organization’s reviews have been sceptical about the data reliability.
Effectiveness of state responses
- India, Pakistan, Bangladesh, and the Maldives have unveiled stimulus packages.
- The rest of the countries are yet to announce any concrete support for their low income and lower-middle income population still suffering from the economic fallout of the crisis.
- In late March, India announced a $22.5 billion relief package to ensure food security and cash transfers to save the livelihoods of an estimated 800 million people living in poverty.
- The Reserve Bank of India (RBI) slashed the repo and reverse repo rate to create liquidity for businesses.
- In early April, Bangladesh announced a stimulus package worth about $8 billion in addition to an earlier $595 million incentive package for export-oriented industries.
- Although countries like India and Bangladesh announced financial and material stimulus packages, distribution concerns remain unaddressed.
United response by SAAR
- The region need to look beyond narrow geopolitical rivalry and come together to work towards a well-coordinated response mechanism.
- A SAARC COVID-19 fund was created following Indian Prime Minister Narendra Modi’s call to South Asian leaders.
- Bbut governments are yet to decide on its modus operandi.
- The region could leverage its existing institutional framework under the umbrella of SAARC to effectively respond to the crisis.
- For instance, SAARC Food Banks could be activated to tackle the imminent regional food crisis, and the SAARC Finance Forum can be activated to formulate a regional economic policy response.
Conclusion
Faced with an unprecedented crisis, this is the right time for the leaders of the region to come together and take on the challenge collectively.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Online education and issues with it
Pandemic has forced learning to the online mode. But there are several concerns with the online leaning. The article discusses the same.
Providing learning opportunity in pandemic
- The main thrust of providing learning opportunities while schools are shut is online teaching.
- There are several sets of guidelines and plans issues by the government, the National Council of Educational Research and Training (NCERT) and the Central Board of Secondary Education (CBSE) for this purpose.
- The Internet space is teeming with learning schemes, teaching videos, sites and portals for learning opportunities.
3 issues with online learning
1) Increasing inequality
- Calamities, be they natural or man-made, affect the underprivileged the hardest, COVID-19 is no exception.
- The COVID-19 shutdown has affected opportunity for the poor even harder than their counterparts from well-to-do sections of society.
- The government began plans for students with no online access only by the end of August.
- But online or digital education is available is for students with only online access.
- Thus, digital India may become even more unequal and divided than it already is.
2) Pedagogical issues leading to bad quality education
- The quality of online teaching-learning leaves much to be desired.
- Listening to lectures on the mobile phone, copying from the board where the teacher is writing, frequent disconnections can hardly and organically connect the child’s present understanding with the logically organised bodies of human knowledge.
- The secondary students are in a better position still because of their relative independence in learning and possible self-discipline.
- The beginners in the lower primary can get nothing at all from this mode of teaching.
3) An unwarranted thrust on online education, post-COVID-19
- All reliable studies seem to indicate that Information and Communication Technology (ICT) in the classroom helps in already well-functioning systems, and either has no benefits or negative impact in poorly performing systems.
- That does not indicate much hope from IT in our education system.
- Transformation of schools in the current understanding of pedagogy, suitability of learning material and quality of learning provided through IT will further devastate the already inadequate system of school education in the country.
- Of course, IT can be used in a balanced manner where it can help; but it should not be seen as a silver bullet to remedy all ills in the education system.
Importance of institutional environment
- The institutional environment plays an important role online teaching.
- Even when the institutions function sub-optimally, students themselves create an environment that supports their growth morally, socially and intellectually in conversations and interactions with each other.
- The online mode of teaching completely forecloses this opportunity.
Conclusion
Our democracy and public education system should try to address the issues raised here while promoting the online mode of education.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Agri bills related to agri markets and contract farming
The faremers have been protesting against the agri bill. This article explains the rationale behind the bill and how it could help the farmers.
Challenges Indian agriculture face
- Indian agriculture has been characterised by fragmentation due to small holding sizes, weather dependence, production uncertainties, huge wastage and market unpredictability.
- This makes agriculture risky and inefficient with respect to both input and output management.
Recent steps to help farmers
- The government has taken various steps in this direction, for example-
- The implementation of the Swaminathan committee’s recommendation regarding fixing MSP at least 50 per cent profits on the cost of production.
- Increasing the agri budget by more than 11 times in the past 10 years.
- Establishing e-NAM mandis.
- An Agriculture Infrastructure Fund of Rs 1 lakh crore under the Atmanirbhar Bharat Package, the scheme for the formation of 10,000 FPOs, etc.
What the agri bills seek to achieve
- The bills will create an ecosystem where farmers and traders enjoy the freedom of choice of sale and purchase of farming produce.
- This freedom of choice will help to facilitate remunerative prices to farmers through competitive alternative trading channels.
- This will promote barrier-free inter-state and intra-state trade and commerce of farming produce outside the physical premises of markets notified under state agricultural produce marketing legislation.
- The farm bills also lay the ground of a legal framework for fair and transparent farming agreements between farmers and sponsors.
- This framework will facilitate greater certainty in quality and price, adoption of quality and grading standards, linkage of farming agreements with insurance and credit instruments and also enable the farmer to access modern technology and better inputs.
- These recommendations have been made by the Swaminathan Committee, which suggested the removal of the mandi tax, creation of a single market and facilitating contract farming.
Safeguard in the bill
- The bill have several safeguards such as the prohibition of sale, lease or mortgage of farmers’ land and farmers’ land is also protected against any recovery.
- Farming agreements cannot be entered into, if they are in derogation of the rights of a sharecropper.
- Farmers will have access to flexible prices subject to a guaranteed price in agreements.
- The sponsor has to ensure the timely acceptance of delivery and payment of produce to farmers and farmers’ liability is limited to only the advance received and cost of inputs provided by the sponsor.
- Disputes will be resolved through a Conciliation Board, to be constituted by the sub-divisional magistrate (SDM), failing which an aggrieved party may approach the concerned SDM for the settlement of the dispute.
Consider the question “What are the changes introduced by the two recent bills passed by the government related to agri markets and contract farming how will these changes be helpful to the farmers?”
Conclusion
These farm bills will bring transformative changes in our agricultural sector and reduce wastage, increase efficiency, unlock value for our farmers and increase farmers’ incomes.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: REITs, INVITs
Mains level: Not Much
The National Highways Authority of India (NHAI) has come up with its Infrastructure Investment Trust (InvIT) issue.
Try this PYQ:
Q.Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?
(a) Certificate of Deposit
(b) Commercial Paper
(c) Promissory Note
(d) Participatory Note
Significance of the issue
- The issue will enable NHAI to monetize its completed National Highways that have a toll collection track record of at least one year.
- The NHAI reserves the right to levy a toll on identified highways and it will help the company raise funds for more road development across the country.
What are InvITs?
- Infrastructure investment trusts are institutions similar to mutual funds, which pool investment from various categories of investors and invest them into completed and revenue-generating infrastructure projects, thereby creating returns for the investor.
- Structured like mutual funds, they have a trustee, sponsor(s), investment manager and project manager.
- While the trustee (certified by Sebi) has the responsibility of inspecting the performance of an InvIT, sponsor(s) are promoters of the company that set up the InvIT.
- In the case of Public-private partnership (PPP) projects, it refers to the infrastructure developer or a special purpose vehicle holding the concession.
- While the investment manager is entrusted with the task of supervising the assets and investments of the InvIT, the project manager is responsible for the execution of the project.
How will it work for NHAI?
- NHAI’s InvIT will be a Trust established by NHAI under the Indian Trust Act, 1882 and SEBI regulations.
- The InvIT Trust will be formed the objective of investing primarily in infrastructure projects.
- The fund raised can be invested in the project SPVs by way of an issue of debt.
- The trust can utilise it to repay their loans or even for prepayment of certain unsecured loans and advances.
Why does NHAI need fund?
- At a time when private sector investment in the economy has declined, fund-raising by NHAI and spending on infrastructure will not only provide a fillip to the economy but will also crowd-in private sector investment.
- So NHAI’s InvIT offer is a way for the government to tap alternative sources of financing to boost public spending in the roads and infrastructure sector.
- It is important to note that in October 2017, the Centre had launched Bharatmala Pariyojana, its flagship highway development programme, for development of 24,800 km of roads.
- In order to complete the projects, NHAI needs adequate funds and one of the options is to monetize the completed and operational NH assets.
How does it benefit the investor?
- Retail or even large financial investors may not be typically able to invest in infrastructure projects such as roads, power, energy etc.
- InvITs enable these investors to buy a small portion of the units being sold by the fund depending upon their risk appetite.
- Given that such trusts comprise largely of completed and operational projects with positive cash flow, the risks are somewhat contained.
- The investors can benefit from the cash flow that gets distributed as well as in capital appreciation of the units.
- Unitholders also benefit from favourable tax norms, including exemption on dividend income and no capital gains tax if units are held for more than three years.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: ABHYAS-HEAT
Mains level: Not Much
Successful flight test of ABHYAS – High-speed Expendable Aerial Target (HEAT) was today conducted by Defence Research and Development Organisation (DRDO) from the Interim Test Range, Balasore in Odisha.
Try this PYQ:
What is “Terminal High Altitude Area Defense (THAAD)”, sometimes seen in the news?
(a) An Israeli radar system
(b) India’s indigenous anti-missile programme
(c) An American anti-missile system
(d) A defence collaboration between Japan and South Korea
ABHYAS Air Vehicle
- ABHYAS is designed & developed by Aeronautical Development Establishment (ADE), DRDO.
- The air vehicle is launched using twin underslung booster.
- It is powered by a small gas turbine engine and has a MEMS-based Inertial Navigation System (INS) for navigation along with the Flight Control Computer (FCC) for guidance and control.
- The vehicle is programmed for fully autonomous flight. The check out of air vehicle is done using laptop-based Ground Control Station (GCS).
- During the test campaign, the user requirement of 5 km flying altitude, vehicle speed of 0.5 mach, the endurance of 30 minutes and 2g turn capability of the test vehicle were successfully achieved.
Its uses
- Abhyas’s radar cross-section (RCS), as well as its visual and infrared signatures, can be augmented to simulate a variety of aircraft for air-defence weapon practices.
- It can also function as a jammer platform and decoy.
- The HEAT system is utilized to do away with the post-launch recovery mode, which is time-consuming and difficult in a scenario as the sea.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MANF Scheme
Mains level: Not Much
The Ministry of Minority Affairs has provided information about the progress of MANF Scheme in the Parliament.
Note: As the name suggests, the scheme particularly aims to target the Minority community. Here, six major groups are considered a minority. Statement based questions often create bluffs on such conditions.
MANF Scheme
- The Ministry of Minority Affairs implements MANF Scheme for educational empowerment of students belonging to six notified minority communities i.e. Buddhist, Christian, Jain, Muslim, Sikh, Zoroastrian (Parsi).
- The Scheme is implemented through the University Grants Commission (UGC) and no waiting list is prepared under the Scheme by UGC.
- Candidates belonging to the Six centrally notified minority are considered for award of fellowship under the MANF Scheme.
- The selection of candidates is done through JRF-NET (Junior Research Fellow- National Eligibility Test) examination conducted by the National Testing Agency.
- Prior to 2019-20, the merit list was prepared on the basis of marks obtained by the candidates in their Post Graduate examination.
- However, in 2018-19, only the candidates who had qualified CBSE-UGC-NET/JRF or CSIR-NET/JRF were eligible to apply.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: YuWaah Portal
Mains level: Not Much
Ministry of Youth Affairs & Sports and United Nations Children Fund (UNICEF) are set to establish YuWaah, Generation Unlimited (GenU), a global multi-stakeholder platform in India.
YuWaah Platform
As per the Statement of Intent, the objectives of this project are:
- Support young people by providing entrepreneurship classes (online and offline) with successful entrepreneurs and experts, towards establishing an entrepreneurial mindset among young people.
- Upskilling of young people on 21st-century skills, life skills, digital skills through online and offline channels and support them through self-learning, for their productive lives and the future of work.
- Create linkages with aspirational economic opportunities to connect young people with employment opportunities, including building pathways to connect them with jobs or self-employment.
- Providing career guidance support to young people through career portal as well as through job-readiness and self-exploration sessions to make young people career-ready.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Indra exercise
Mains level: Paper 2-India-Russia relations
The article analyses the challenges in the India-Russia relations against the background of changing global order.
Context
- India decided to pull out of Russia’s Kavkaz 2020 military exercises, where it was scheduled to participate alongside other Shanghai Cooperation Organisation (SCO) member states.
Russia’s role in India-China dispute
- The ongoing conflict between two prominent members, and both close partners of Russia, has given rise to concerns about its impact on India-Russia ties.
- Moscow has been playing a quiet diplomatic role during the recent border clashes without actively taking sides.
- Recent visits by India’s Defence Minister to Russia saw detailed discussions around furthering the India-Russia defence relationship alongside the promise to accelerate certain supplies based on New Delhi’s requirements.
- The September visit coincided with the biannual Indo-Russian naval exercises, INDRA.
India-Russia relations
- India and Russia have spent the past few years strengthening their partnership, particularly since the 2018 Sochi informal summit.
- From substantive defence engagement to regional questions in Central Asia, Afghanistan and West Asia, a conversation with Moscow remains an important element of Indian foreign policy.
- India and Russia are pragmatic players looking at maximising their strategic manoeuvrability,
- Both recognise the value of having a diversified portfolio of ties. .
- India on its part has sought to include Russia in its vision of the Indo-Pacific that does not see the region as ‘a strategy or as a club of limited members’.
- Reports indicate that a proposal for a India-Russia-Japan trilateral is being explored.
Multilateral forums and Challenges in India-Russia relation
- The multilateral forums are important as they foster continued India-Russia cooperation at the bilateral and multilateral levels.
- Increasingly divergent foreign policies of its members pose challenges of agenda-setting and overall scope.
- At this moment of flux, countries such as India and Russia are keeping all their options open.
- We live in a ‘curious world’ where one cannot view engagement with different parties as a ‘zero-sum game’.
- Worsening India-China ties or a burgeoning China-Russia relationship does not automatically mean a breakdown of the India-Russia strategic partnership.
- It is the combination of a changing regional order, closer Russia-China ties and India’s alignment with the United States and other like-minded countries to manage Beijing’s rise that has the potential to create hurdles for India-Russia cooperation in the Asia.
Consider the question “Despite difficulties in pursuing convergent policies, India-China relations retains its relevance. Comment.”
Conclusion
Although the evolving global order makes it difficult for India and Russia to pursue fully convergent policies, it does not preclude the bilateral relationship from retaining its relevance.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Parliamentary procedures
The article deals with the issue of importance of parliamentary procedures and how it has been neglected in the passage of several Bills recently.
2 contexts that explain the crisis Parliament faces
1) Neglecting the procedure
- Three simple procedural matters are the cornerstone of parliamentary practice.
- The first is Question Hour, which was suspended.
- Even in taking that decision, the Speaker did not accede to the demand for a division.
- The second is referring bills to committees.
- It is increasingly the case with important pieces of legislation that they are not being either referred to committees, nor are they being fully debated in Parliament.
- The third and most important is “division.”
- If a member of a House asks for a division of votes, the Speaker needs to grant it.
- The Speaker can refuse under some circumstances, but even then he has to take something like an informal headcount vote before refusing division.
2) Substantive context
- There are three bills relating to agriculture that have occasioned serious protests.
- There are three far-reaching pieces of legislation pertaining to labour reform.
- Each of these bills can be improved and crafted in ways that make them more the object of consensus.
- The bills pertaining to agriculture were debated, ffter the debate, deputy chairperson refusesed a division.
- By allowing a division we would at least record where each member of Parliament stood on a question of monumental importance.
Concerns
- We seem to not want to give flexibility to states when it comes to farmers.
- Flexibility is given to states, in the most unrestrained manner possible, when it comes to the interest of capital against labour.
- It seems that the hurried interests of corporate India take precedence over farmers and labour, rather than a well negotiated social contract between all three.
Why the farmers are concerned
- A lot of the farmers’ legitimate fear is that in a fiscal crunch, MSP will be rolled back or procurement curtailed.
- There is genuine uncertainty over what private procurement will mean.
Way forward
- It is also possible that in the case of the APMC, a more creative solution could have been found for concerns of the states, like an opt-out clause for them.
- In case of amendments to labour laws, there is need to examine whether it fulfils the twin objectives of both protecting workers and being compliance-friendly at the same time.
Conclusion
Some deference to process can build trust because it is a sign of a government that listens. At least on the APMC this was a possibility. Let us hope on labour bills there is more reasoned deliberation. Parliamentary practice will not be able to knit an enduring social contract between labour, capital and farmers if it does not inspire confidence.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Suspension of MPs
Mains level: Parliamentary behavior and decency
Recently eight Rajya Sabha MPs were suspended for unruly behaviour in the House.
Try this PYQ:
Q.Consider the following statements:
- Speaker of the legislative assembly shall vacate his/her office of he/she ceases to be a member of the assembly
- Whenever the legislative assembly is dissolved the speaker shall vacate his/her office immediately
Which of the statements given above is/are correct? (CSP 2018)
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 not 2
What is the reason for suspending an MP?
- The general principle is that it is the role and duty of the Presiding Officer — Speaker of Lok Sabha and Chairman of Rajya Sabha — to maintain order so that the House can function smoothly.
- In order to ensure that proceedings are conducted in the proper manner, the Speaker/Chairman is empowered to force a Member to withdraw from the House.
What are the rules under which the Presiding Officer acts?
- Rule Number 373 of the Rules of Procedure and Conduct of Business provides for the suspension of MPs by the Speaker of the House.
- To deal with more recalcitrant Members, the Speaker make take recourse to Rules 374 and 374A.
- Rule 374 says: The Speaker may, if deems it necessary, name a Member who disregards the authority of the Chair or abuses the rules of the House by persistently and wilfully obstructing the business thereof.
- Rule 374A was incorporated in the Rule Book on December 5, 2001. The intention was to skirt around the necessity of moving and adopting a motion for suspension.
Procedure in Rajya Sabha
It’s largely similar, with one important difference.
- Like the Speaker in Lok Sabha, the Chairman of Rajya Sabha is empowered under Rule Number 255 of its Rule Book to “direct any Member whose conduct is in his opinion grossly disorderly to withdraw immediately” from the House.
- Unlike the Speaker, however, the Rajya Sabha Chairman does not have the power to suspend a Member. The House may, by another motion, terminate the suspension.
- The Chairman may “name a Member who disregards the authority of the Chair or abuses the rules of the Council by persistently and wilfully obstructing” business.
- In such a situation, the House may adopt a motion suspending the Member from the service of the House for a period not exceeding the remainder of the session.
Is suspending an MP a decent practice?
- It is a strong action, but it is not uncommon. In general, a balance has to be struck.
- There can be no question that the enforcement of the supreme authority of the Presiding Officer is essential for smooth conduct of proceedings.
- However, it must be remembered that the job of the Presiding Officer is to run the House, not to lord over it.
Alternatives to suspension
- The solution to unruly behaviour has to be long-term and consistent with democratic values.
- A previous Speaker had ordered that television cameras be focussed on the demonstrating members so that people could see for themselves how their representatives were behaving in the House.
Present situation
- In the present case, however, the Opposition has accused the Chairman of stopping the telecast of the proceedings in Rajya Sabha.
- What cannot be denied is that Speaker’s/Chairman’s actions are often dictated more by expediency and the stand of the party that they belong to, rather than by the Rules and principles.
- So, the ruling party of the day invariably insists on the maintenance of discipline, just as the Opposition insists on its right to protest. And their positions change when their roles flip.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: United Nations, Atlantic Charter
Mains level: Success and failures of United Nations
The United Nations completed 75 years this year. In order to commemorate the historic moment, world leaders have come together, at a one-day high-level meeting of the UN General Assembly.
Try this:
Q.Discuss the various success and failures of the United Nations. (150W)
Birth of United Nations
- The United Nations was born out of the horrors of World War II.
- At the time of its foundation, it was primarily tasked with the goal of maintaining world peace and saving future generations from the evils of war.
A historical backgrounder
- The UN was born out of the ashes of yet another international organisation created with the intention of keeping war away.
- The League of Nations was created in June 1919, after World War I, as part of the Treaty of Versailles.
- However, when the Second World War broke out in 1939, the League closed down and its headquarters in Geneva remained empty throughout the war.
- Consequently, in August 1941, American President Franklin D. Roosevelt and British PM Winston Churchill held a secret meeting aboard naval ships in Placenta Bay, located in the southeast coast of Newfoundland, Canada.
The Atlantic Charter
- The heads of the two countries discussed the possibility of creating a body for international peace effort and a range of issues related to the war.
- Together they issued a statement that came to be called the Atlantic Charter. It was not a treaty, but only an affirmation that paved the way for the creation of the UN.
- It declared the realization of “certain common principles in the national policies of their respective countries on which they based their hopes for a better future for the world.”
The name ‘UN’
- The United States joined the war in December 1941, and for the first time the term ‘United Nations’ was coined by president Roosevelt to identify those countries which were allied against the axis powers.
- On January 1, 1942, representatives of 26 allied nations met in Washington DC to sign the declaration of the United Nations, which basically spelt out the war objectives of the Allied powers.
- Over the next couple of years, several meetings took place among the Allied big four — The USA, the Soviet Union, the UK and China — to decide on the post-war charter that would describe the precise role of the UN.
Coming to existence
- The UN finally came into existence on October 24, 1945, after being ratified by 51 nations, which included five permanent members (France, the Republic of China, the Soviet Union, the UK and the US) and 46 other signatories.
- The first meeting of the General Assembly took place on January 10, 1946.
Its achievements
- While at the time of its formation, the UN consisted of only 51 member states, independence movements and decolonization in the subsequent years led to an expansion of its membership.
- At present, 193 countries are members of the UN.
- It has also expanded its scope to resolve over a large number of global issues such as health, environment, and women empowerment among others.
- Soon after its formation, it passed a resolution to commit to the elimination of nuclear weapons in 1946. In 1948, it created the World Health Organisation (WHO) to deal with communicable diseases like smallpox, malaria, HIV.
- In 1950, the UN created the High Commissioner for Refugees to take care of the millions who had been displaced due to World War II.
- More recently in 2002, the UN established the UN criminal court to try those who have committed war crimes, genocide, and other atrocities.
Various criticisms
- The UN has also met with its share of criticisms. In 1994, for instance, the organisation failed to stop the Rwandan genocide.
- In 2005, UN peacekeeping missions were accused of sexual misconduct in the Republic of Congo, and similar allegations have also come from Cambodia and Haiti.
- In 2011, the UN peacekeeping mission in South Sudan was unsuccessful in eliminating the bloodshed caused in the civil war that broke out in 2013.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: FCRA
Mains level: FCRA
The Centre is set to amend the Foreign Contribution (Regulation) Act and has proposed to make Aadhaar a mandatory identification document for all the office-bearers, directors and other key functionaries of an NGO or an association eligible to receive foreign donations.
What are the news Amendments?
(1) Prohibition to accept foreign contribution:
- Under the Act, certain persons are prohibited to accept any foreign contribution.
- These include election candidates, editor or publisher of a newspaper, judges, government servants, members of any legislature, and political parties, among others.
- The Bill adds public servants (as defined under the Indian Penal Code) to this list.
- Public servants include any person who is in service or pay of the government or remunerated by the government for the performance of any public duty.
(2) Transfer of foreign contribution:
- Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered to accept foreign contribution (or has obtained prior permission under the Act to obtain foreign contribution).
- The Bill amends this to prohibit the transfer of foreign contribution to any other person. The term ‘person’ under the Act includes an individual, an association, or a registered company.
(3) Aadhaar for registration:
- The Act states that a person may accept foreign contribution if they have: (i) obtained a certificate of registration from central government, or (ii) not registered, but obtained prior permission from the government to accept foreign contribution.
- Any person seeking registration (or renewal of such registration) or prior permission for receiving the foreign contribution must make an application to the central government in the prescribed manner.
- The Bill adds that any person seeking prior permission, registration or renewal of registration must provide the Aadhaar number of all its office bearers, directors or key functionaries, as an identification document.
- In case of a foreigner, they must provide a copy of the passport or the Overseas Citizen of India card for identification.
(4) FCRA account:
- Under the Act, a registered person must accept foreign contribution only in a single branch of a scheduled bank specified by them.
- However, they may open more accounts in other banks for utilization of the contribution.
- The Bill amends this to state that foreign contribution must be received only in an account designated by the bank as “FCRA account” in such branch of the State Bank of India, New Delhi, as notified by the central government.
- No funds other than the foreign contribution should be received or deposited in this account.
(5) Restriction in the utilization of foreign contribution:
- Under the Act, if a person accepting foreign contribution is found guilty of violating any provisions of the Act or the unutilized or unreceived foreign contribution may be utilized or received, only with the prior approval of the central government.
- This amendment Bill also seeks to prohibit the transfer of FCRA funds to other persons or organisations.
- The Bill adds that the government may also restrict usage of unutilized foreign contribution for persons who have been granted prior permission to receive such contribution.
- This may be done if, based on a summary inquiry, and pending any further inquiry, the government believes that such a person has contravened provisions of the Act.
(6) Renewal of license:
- Under the Act, every person who has been given a certificate of registration must renew the certificate within six months of expiration.
- The Bill provides that the government may conduct an inquiry before renewing the certificate to ensure that the person making the application: (i) is not fictitious or benami, (ii) has not been prosecuted or convicted for creating communal tension and (iii) has not been found guilty of diversion or misutilisation of funds, among others conditions.
(7) Reduction in use of foreign contribution for administrative purposes:
- Under the Act, a person who receives foreign contribution must use it only for the purpose for which the contribution is received.
- Further, they must not use more than 50% of the contribution to meeting administrative expenses. The Bill reduces this limit to 20%.
(8) Surrender of certificate:
- The Bill adds a provision allowing the central government to permit a person to surrender their registration certificate.
- The government may do so if, post an inquiry, it is satisfied that such person has not contravened any provisions of the Act, and the management of its foreign contribution (and related assets) has been vested in an authority prescribed by the government.
(9) Suspension of registration:
- Under the Act, the government may suspend the registration of a person for a period not exceeding 180 days.
- The Bill adds that such suspension may be extended up to an additional 180 days.
Significance of the amendment
1.Prevent misuse:
- The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilised the same for the purpose for which they were registered or granted prior permission under the FCRA 2010.
- Recently, the Union Home Ministry has suspended licenses of the six (NGOs) who were alleged to have used foreign contributions for religious conversion.
2.Strengthen National security
- Many persons were not adhering to statutory compliances such as submission of annual returns and maintenance of proper accounts.
- Such a situation could have adversely affected the internal security of the country.
3.Transparency and accountability
- The new Bill aims to enhance transparency and accountability in the receipt and utilisation of foreign contributions and facilitating the genuine non-governmental organisations or associations who are working for the welfare of society.
Criticism of the FCRA Bill, 2020
- The legislation may be used to target political opponents and religious minorities.
- Effects NGO Functioning: Due to the 20% cap, many NGOs will shut shop and many people will become jobless.
- Inconsistency: On one hand the government invites foreign funds, but when such funds come for educational and charitable purposes, it is prevented.
- High compliance rate: According to the GoI’s FCRA dashboard, there are 22,447 active FCRA registrations in India today. In 2018-19, 21,915 annual returns were filed – a compliance rate of 97.6%.
- Double standards: PM CARES fund had received exemptions from complying with FCRA provisions when it is headed by Union cabinet ministers and administered by PMO officials.
- Licence-Raj on NGOs: The Bill assumes that all NGOs receiving foreign grants are guilty and thus makes Aadhar of office bearers as mandatory requirement.
- Bureaucratic Discretion: There is a thin line between enforcing transparency and using rules to allow official interference and harassment in the sector. Much of the present bill crosses that line and introduces a questionable degree of micro-management.
Way Forward
- NGOs are helpful in implementing government schemes at the grassroots. They fill the gaps, where the government fails to do their jobs.
- The government must stick to the ancient Indian ethos of Vasudhaiva Kutumbakam as the framework for its global engagement and should not act with vendetta against the NGOs who criticize its working.
- Seamless sharing of ideas and resources across national boundaries is essential to the functioning of a global community, and should not be discouraged unless there is reason to believe the funds are being used to aid illegal activities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Basel norms
Mains level: Basel norms
The country’s largest lender State Bank of India has raised Rs 7,000 crore by issuing Basel III compliant bonds.
Try this PYQ:
Q.‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to:
(a) Develop national strategies for the conservation and sustainable use of biological diversity
(b) Improve the banking sector’s ability to deal with financial and economic stress and improve risk management
(c) Reduce greenhouse gas emissions but places a heavier burden on developed countries
(d) Transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals
What are Basel III compliant Bonds?
- The bonds qualify as tier II capital of the bank, and has a face value of Rs 10 lakh each, bearing a coupon rate of 6.24 per cent per annum payable annually for a tenor of 10 years.
- There is a call option after 5 years and on anniversary thereafter.
- Call option means the issuer of the bonds can call back the bonds before the maturity date by paying back the principal amount to investors.
Back2Basics: What are Basel Norms?
- Basel is a city in Switzerland. It is the headquarters of the Bureau of International Settlement (BIS), which fosters co-operation among central banks with a common goal of financial stability and common standards of banking regulations.
- Basel guidelines refer to broad supervisory standards formulated by this group of central banks – called the Basel Committee on Banking Supervision (BCBS).
- The set of the agreement by the BCBS, which mainly focuses on risks to banks and the financial system is called Basel accord.
- The purpose of the accord is to ensure that financial institutions have enough capital on account to meet obligations and absorb unexpected losses.
- India has accepted Basel accords for the banking system.
Basel I
- In 1988, BCBS introduced a capital measurement system called Basel capital accord, also called as Basel 1.
- It focused almost entirely on credit risk. It defined capital and structure of risk weights for banks.
- The minimum capital requirement was fixed at 8% of risk-weighted assets (RWA).
- RWA means assets with different risk profiles.
- For example, an asset-backed by collateral would carry lesser risks as compared to personal loans, which have no collateral. India adopted Basel 1 guidelines in 1999.
Basel II
- In June ’04, Basel II guidelines were published by BCBS, which were considered to be the refined and reformed versions of Basel I accord.
- The guidelines were based on three parameters, which the committee calls it as pillars:
- Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
- Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
- Market Discipline: This needs increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank. Basel II norms in India and overseas are yet to be fully implemented.
Basel III
- In 2010, Basel III guidelines were released. These guidelines were introduced in response to the financial crisis of 2008.
- A need was felt to further strengthen the system as banks in the developed economies were under-capitalized, over-leveraged and had a greater reliance on short-term funding.
- Also, the quantity and quality of capital under Basel II were deemed insufficient to contain any further risk.
- Basel III norms aim at making most banking activities such as their trading book activities more capital-intensive.
- The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Medicanes
Mains level: Frequent landfalls of tropical cyclones in India
Very recently, a medicane named Ianos made landfall along the coast of Greece and caused heavy rainfall and flooding on the islands of Zakynthos, Kefalonia and Ithaca.
Try this PYQ:
In the South Atlantic and South-Eastern Pacific regions in tropical latitudes, cyclone does not originate. What is the reason?
(a) Sea surface temperatures are low
(b) Inter-Tropical Convergence Zone seldom occurs
(c) Coriolis force is too weak
(d) Absence of land in those regions
What are Medicanes?
- Medicanes are extra-tropical hurricanes observed over the Mediterranean Sea.
- Medicanes occur more in colder waters than tropical cyclones, hurricanes and typhoons.
- Hence, the cores of these storms are also cold, as compared to the warm cores of tropical cyclones.
- Warmer cores tend to carry more moisture (hence rainfall), are bigger in size and have swifter winds.
- The main societal hazard posed by Medicanes is not usually from destructive winds but through life-threatening torrential rains and flash floods.
Why in news?
- This year is a mild La Niña, according to the World Meteorological Organization.
- La Niña is the cooling phase of the El Niño Southern Oscillation (ENSO) cycle in the equatorial Pacific Ocean, as opposed to the warming El Niño phase.
- It is characterized by the unusual cooling of the central and east-central equatorial Pacific Ocean.
- A La Niña produces more rain in the central-eastern part, where most of the Mediterranean cyclones develop.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: O-Smart Scheme
Mains level: India's deep ocean mission
The Union Ministry of Earth Sciences has informed about the progress of O-SMART Scheme.
Do you know?
India’s ambitious Deep Ocean Mission is an umbrella scheme under O-SMART initiative. Bottom of Form
O-SMART Scheme
- The services rendered under the O-SMART will provide economic benefits to a number of user communities in the coastal and ocean sectors, namely, fisheries, offshore industry, coastal states, Defence, Shipping, Ports etc.
- It seeks to address issues relating to SDG-14, which aims to conserve the use of oceans, marine resources for sustainable development.
- It also provides the necessary scientific and technological background required for the implementation of various aspects of Blue Economy.
- The State of Art Early Warning Systems established Scheme will help in effectively dealing with ocean disasters like Tsunami, storm surges.
- The technologies being developed will help in harnessing the vast ocean resources of both living and non-living resources from the seas around India.
- A fleet of research vessels viz., Technology Demonstration vessel SagarNidhi, Oceanographic Research Vessel SagarKanya, Fisheries and Oceanographic Research Vessel SagarSampada and Coastal Research Vessel SagarPurvi have been acquired to provide required research support.
Some of the modified objective
The objectives of O-SMART are:
- To generate and regularly update information on Marine Living Resources and their relationship with the physical environment in the Indian Exclusive Economic Zone (EEZ),
- To periodically monitor levels of seawater pollutants for health assessment of coastal waters of India, to develop shoreline change maps for assessment of coastal erosion due to natural and anthropogenic activities,
- To develop a wide range of state-of-the-art ocean observation systems for the acquisition of real-time data from the seas around India,
- To generate and disseminate a suite of user-oriented ocean information, advisories, warnings, data and data products for the benefit of society,
- To develop high-resolution models for ocean forecast and reanalysis system,
- To develop algorithms for validation of satellite data for coastal research and to monitor changes in the coastal research,
- Acquisition of 2 Coastal Research Vessels (CRVs) as replacement of 2 old CRVs for coastal pollution monitoring, testing of various underwater components and technology demonstration,
- To carry out exploration of Polymetallic Nodules (MPN) from a water depth of 5500 m in the site of 75000 sq.km allotted to India by United Nations in Central Indian Ocean Basin, to carry out investigations of gas hydrates,
- Exploration of polymetallic sulphides near Rodrigues Triple junction in 10000 sq. km of the area allotted to India in International waters by International Seabed Authority/UN and,
- Submission of India’s claim over continental shelf extending beyond the Exclusive Economic Zone supported by scientific data, and Topographic survey of EEZ of India.
Also read:
Explained: India’s Deep Ocean Mission
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Atmanirbhar Bharat Mission
Mains level: Paper 3- Atmanirbhar Bharat Abhiyan and challenges
Atmanirbhar Bharat Abhiyan, well considered plan by the Central government seeks to transform the Indian economy. The article analyses its potential and suggests the ways to achieve the aims.
Vocal for local
- Prime Minister Narendra Modi gave a call to fellow Indians to be “Vocal for Local” in May.
- This includes not only to buy and use local products but to also take pride in promoting them.
Challenges
1) Imports from China
- Serious challenge to Atmanirbhar mission is country’s $65 billion worth of imports from China alone.
- Most of these imports are of essential items — raw materials, components and intermediates required in producing finished goods.
- For example, the pharmaceuticals sector imports nearly 70 per cent of its raw material and drug intermediates.
- It may not be feasible to replace all Chinese imports in the near future.
- It may also be debatable if the end goal is to replace the entire chain of imports from a country.
- Nevertheless, experts and industrialists do assert that the ANBA is an excellent initiative and gives India the opportunity to embark on the self-reliance drive.
2) Struggling MSMEs
- A major part of the Vocal for Local mission rests on the MSMEs, which has been seen as struggling for survival.
- But the reforms announced as part of the ANBA should put them on a stronger footing.
- One immediate fallout of these measures will be creation of large scale employment opportunities for both the skilled and unskilled workforce.
- A stronger manufacturing base will also lead to positive spinoffs related to the supply-purchase of local raw material and capacity building of allied manufacturing units.
Way forward
- First, an umbrella action plan should be drawn by the Niti Aayog listing all targets under the ANBA and the Vocal for Local Mission.
- A monitoring agency will review and suggest course correction to ensure that no delay is allowed to build.
- Second, each state/UT will develop an action plan in consonance with the umbrella plan.
- A separate organisation created by each state will be responsible for the implementation of the action plan
- Such organisation should also conduct regular studies to identify local and global market trends and invite competitive solutions to meet market demands.
- Third, each district (or a group of districts) will work out a more detailed action plan, and charter of responsibilities for ground level officers and departments.
Conclusion
The ANBA is a mission to empower the people of India. It will in all likelihood become a benchmark of how governments and their various organisations can work in a mission mode.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 3- Issues with the agriculture bill
The article analyses the issue of farmers opposition to the three agricultural bills.
Context
- Farmers have been protesting against the three bills related to agriculture.
- These three Bills are-
- 1) The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020
- 2) The Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020.
- 3) The Essential Commodities (Amendment) Bill, 2020.
What are the aims of the bills?
- The Bills aim to do away with government interference in agricultural trade by creating trading areas outside the structure of Agricultural Produce Market Committees (APMCs).
- One of the bills aims at removing restrictions of private stockholding (under Essential Commodities Act 1955) of agricultural produce.
- One of the bills deals with the regulation of contract farming.
Issues with the Bills
- The government has failed to hold any discussion with the various stakeholders including farmers and middlemen.
- The attempt to pass the Bills without proper consultation adds to the mistrust among various stakeholders including State governments.
- Farmer organisations see these Bills as an attempt to weaken the APMCs and eventual withdrawal of the Minimum Support Prices (MSP).
- Farmers in Punjab and Haryana have genuine concern about the continuance of the MSP-based public procurement given the large-scale procurement operations in these States.
Understanding the role of APMC
- APMCs do play an important role of price discovery essential for agricultural trade and production choices.
- The middlemen are a part of the larger ecosystem of agricultural trade, with deep links between farmers and traders.
- The preference for corporate interests at the cost of farmers’ interests and a lack of regulation in these non-APMC mandis are cause for concern.
- To understand the role of APMC, consider the example of Bihar.
- After Bihar abolished APMCs in 2006, farmers in Bihar on average received lower prices compared to the MSP for most crops.
- Despite the shortcomings and regional variations, farmers still see the APMC mandis as essential to ensuring the survival of MSP regime.
Conclusion
The protests by farmers are essentially a reflection of the mistrust between farmers and the stated objective of these reforms.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Parliamentary committees and its types
Mains level: Parliamentary committees and thier various functions
The government pushed through two crucial agriculture Bills in Rajya Sabha, rejecting Opposition demands to refer them to a Select Committee of Rajya Sabha.
Try this PYQ:
With reference to the Parliament of India which of the following Parliamentary Committees scrutinizes and reports to the House whether the powers to make regulations, rules, sub-rules, bylaws, etc. conferred by the Constitution or delegated by the Parliament are being properly exercised by the Executive within the scope of such delegation?(CSP 2018)
(a) Committee on Government Assurances
(b) Committee on Subordinate Legislation
(c) Rules Committee
(d) Business Advisory Committee
What is a Parliamentary Committee?
- It means a Committee which is appointed or elected by the House or nominated by the Speaker and which works under the direction of the Speaker and presents its report to the House or to the Speaker and the Secretariat for which is provided by the Lok Sabha Secretariat.
By their nature, Parliamentary Committees are of two kinds: Standing Committees and Ad hoc Committees.
- Standing Committees are permanent and regular committees which are constituted from time to time in pursuance of the provisions of an Act of Parliament or Rules of Procedure and Conduct of Business in Lok Sabha. The work of these Committees is of continuous nature. The Financial Committees, DRSCs and some other Committees come under the category of Standing Committees.
- Ad hoc Committees are appointed for a specific purpose and they cease to exist when they finish the task assigned to them and submit a report. The principal Ad hoc Committees are the Select and Joint Committees on Bills. Railway Convention Committee, Joint Committee on Food Management in Parliament House Complex etc also come under the category of ad hoc Committees.
Why need Parliamentary Committee?
- Parliament scrutinizes legislative proposals (Bills) in two ways. The first is by discussing it on the floor of the two Houses.
- This is a legislative requirement; all Bills have to be taken up for debate.
- The time spent debating the bills can vary. They can be passed in a matter of minutes, or debate and voting on them can run late into the night.
- Since Parliament meets for 70 to 80 days in a year, there is not enough time to discuss every Bill in detail on the floor of the House.
Its role in the passage of a Bill
- The debate in the house is mostly political and does not go into the technical details of a legislative proposal.
- The second mechanism is by referring a Bill to a parliamentary committee. It takes care of the legislative infirmity of debate on the floor of the House.
- However, referring to Bills to parliamentary committees is not mandatory.
And what is a Select Committee?
- India’s Parliament has multiple types of committees.
- They can be differentiated on the basis of their work, their membership and the length of their tenure. First are committees that examine bills, budgets and policies of ministries.
- These are called departmentally related Standing Committees. There are 24 such committees and between them, they focus on the working of different ministries.
- Each committee has 31 MPs, 21 from Lok Sabha and 10 from Rajya Sabha.
- The main purpose is to ensure the accountability of Government to Parliament through a more detailed consideration of measures in these committees.
- The purpose is not to weaken or criticize the administration but to strengthen by investing in with more meaningful parliamentary support.
When does a committee examine a Bill?
- Bills are not automatically sent to committees for examination. There are three broad paths by which a Bill can reach a committee.
- The first is when the minister piloting the Bill recommends to the House that his Bill be examined by a Select Committee of the House or a joint committee of both Houses.
- Last year Electronics and IT Minister moved a motion in Lok Sabha referring the Personal Data Protection Bill to a Joint Committee.
- If the minister makes no such motion, it is up to the presiding officer of the House to decide whether to send a Bill to a departmentally related Standing Committee.
What happens when a bill goes to a Committee?
- Sending a Bill to any committee results in two things.
- First, the committee undertakes a detailed examination of the Bill. It invites comments and suggestions from experts, stakeholders and citizens.
- The government also appears before the committee to present its viewpoint.
- All this results in a report that makes suggestions for strengthening the Bill. While the committee is deliberating on a Bill, there is a pause in its legislative journey.
- It can only progress in Parliament after the committee has submitted its report. Usually, parliamentary committees are supposed to submit their reports in three months, but sometimes it can take longer.
What happens after the report?
- The report of the committee is of a recommendatory nature. The government can choose to accept or reject its recommendations.
- Very often the government incorporates suggestions made by committees. Select Committees and JPCs have an added advantage.
- In their report, they can also include their version of the Bill. If they do so, the minister in charge of that particular Bill can move for the committee’s version of the Bill to be discussed and passed in the House.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Labour reforms
The government has introduced new versions of three labour codes – Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020.
Try this PYQ:
Q.Disguised unemployment generally means:
(a) A large number of people remain unemployed
(b) Alternative employment is not available
(c) Marginal productivity of labour is zero
(d) Productivity of workers is low
What are the key proposals?
(1) Industrial Relations Code Bill, 2020
- In this, the government has proposed to introduce more conditions restricting the rights of workers to strike, alongside an increase in the threshold relating to layoffs and retrenchment.
- The Code has raised the threshold for the requirement of a standing order — rules of conduct for workmen employed in industrial establishments — to over 300 workers.
- This implies industrial establishments with up to 300 workers will not be required to furnish a standing order, a move which experts say would enable companies to introduce arbitrary service conditions for workers.
- These steps are likely to provide more flexibility to employers for hiring and firing workers without government permission.
(2) Social Security Code
- It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers and platform workers.
- Also, aggregators employing gig workers will have to contribute 1-2 per cent of their annual turnover for social security, with the total contribution not exceeding 5 per.
(3) Occupational Safety, Health and Working Conditions Code
- This code has defined inter-state migrant workers as the worker who has come on his own from one state and obtained employment in another state, earning up to Rs 18,000 a month.
- The proposed definition makes a distinction from the present definition of only contractual employment.
- The Code, however, has dropped the earlier provision for temporary accommodation for workers near the worksites.
- It has though proposed a journey allowance — a lump sum amount of fare to be paid by the employer for to and fro journey of the worker to his/her native place from the place of his/her employment.
What are the other proposals for workers?
- The IR Code Bill has also proposed a worker re-skilling fund.
- The contributions for the fund are only detailed from the employer of an industrial establishment amounting to fifteen days wages last drawn by the worker immediately before the retrenchment along with the contribution from such other sources.
- The mention of ‘other sources’ for funding the re-skilling fund is vague.
What are the concerns raised over the new labour codes?
- Analysts say the increase in the threshold for standing orders will water down the labour rights for workers in small establishments having less than 300 workers.
- The increase is uncalled for and shows the government is very keen to give tremendous amounts of flexibility to the employers in terms of hiring and firing.
- Dismissal for alleged misconduct and retrenchment for economic reasons will be completely possible for all the industrial establishments employing less than 300 workers.
- The Industrial Relations Code also introduces new conditions for carrying out a legal strike.
- The time period for arbitration proceedings has been included in the conditions for workers before going on a legal strike as against only the time for conciliation at present.
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