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  • [Burning issue] Draft Digital Personal Data Protection Bill, 2022

    [Burning issue] Draft Digital Personal Data Protection Bill, 2022

    data

    Context

    • The draft Digital Personal Data Protection Bill 2022 has now been released by the Ministry of Electronics and IT (MeitY), and the government is now asking for public comments and consultations on the bill.
    • In this context, this edition of the burning issue will discuss the evolution of privacy bills in India and analyse the current proposed draft data bill.

    Why do we need data protection?

    • Increasing internet use: India currently has over 750 million Internet users, with the number only expected to increase in the future.
    • Data breaches: At the same time, India has among the highest data breaches in the world. Without a data protection law in place, the data of millions of Indians continue to be at risk of being exploited, sold, and misused without their consent.
    • Individual privacy: Data monetization may happen at cost of individual privacy. The most sought-after datasets are those that contain sensitive personal data of individuals, ex. medical history, and financial data.
    • Lack of writ proceedings against corporate action: Unlike state action, corporate action or misconduct is not subject to writ proceedings in India. This is because fundamental rights are, by and large, not enforceable against private non-state entities. This leaves individuals with limited remedies against private actors.

    Background: Evolution of Demand for the data protection

    • The journey towards data protection legislation began in 2011 when the department of Personnel and Training initiated discussions on the Right to Privacy Bill, 2011.
    • The major fillip to the data protection case was given by the K. Puttuswamy judgment, 2017 where the supreme court held the “Right to privacy” as a fundamental right under Article 21- right to life and personal liberty.
    • After the Puttaswamy judgment, the government-appointed B.N Srikrishna committee the drafting of a law for data protection and privacy. This led to the Justice B.N. Srikrishna committee report which later on led to the Personal Data Protection Bill of 2019.

    The previous draft Personal Data Protection Bill, 2019

    The PDP Bill was introduced in Lok Sabha by the Minister of Electronics and Information Technology in 2019. The Bill seeks to provide for the protection of the personal data of individuals and establishes a Data Protection Authority for the same. Here are the key features:

    • Applicability: The Bill governs the processing of personal data by the government, companies incorporated in India and foreign companies dealing with the personaldata of individuals in India.
    • Categorization of data– Personal data is data that pertains to characteristics, traits or attributes of identity, which can be used to identify an individual. The Bill categorizes certain personal data as sensitive personal data. This includes financial data, biometric data, caste, religious or political beliefs, or any other category of data specified by the government, in consultation with the Authority and the concerned sectoral regulator.
    • Data fiduciary and his obligations– A data fiduciary is an entity or individual who decides the means and purpose of processing personal data. Such processing will be subject to a certain purpose, collection and storage limitations. For instance, personal data can be processed only for specific, clear and lawful purposes.
    • Rights of the individual- The Bill sets out certain rights of the individual (or data principal).  These include the right to Obtain confirmation from the fiduciary on whether their data has been processed, Seek correction of inaccurate, incomplete, or out-of-date personal data, Have personal data transferred to any other data fiduciary in certain circumstances and Restrict continuing disclosure of their data by a fiduciary, if it is no longer necessary or consent is withdrawn.
    • Grounds for processing personal data- The Bill allows the processing of data by fiduciaries only if consent is provided by the individual. However, in certain circumstances, personal data can be processed without consent.
    • Data Protection Authority– The Bill sets up a Data Protection Authority which may take steps to protect the interests of individuals, prevent misuse of personal data, and ensure compliance with the Bill. It will consist of a chairperson and six members, with at least 10 years of expertise in the field of data protection and information technology.
    • Transfer of data outside India– Sensitive personal data may be transferred outside India for processing if explicitly consented to by the individual, and subject to certain additional conditions. However, such sensitive personal data should continue to be stored in India. Certain personal data notified as critical personal data by the government can only be processed in India.
    • Exemptions to a government agency– The central government can exempt any of its agencies from the provisions of the Act: In the interest of the security of the state, public order, sovereignty and integrity of India and friendly relations with foreign states. 

    What were the issues with the 2019 Bill?

    • Power to exemption with the state: The Bill’s expansive exemptions allowed the state to exempt the entire application of the law simply as if it was “expedient” to do so in the interest of national security or public order.
    • Powers without accountability: The PDP Bill, 2019 as well as the JPC’s version established a strong regulator (the Data Protection Authority) with a lot of power, but very little independence or accountability.
    • Data localisation: The Bill imposed a strong data localisation mandate, requiring companies to store all sensitive personal data and critical personal data (which was not defined) in India.
    • Subsuming the personal and non-personal data: The JPC recommended subsuming the regulation of personal data and non-personal data within a single legislation, even though it undermined the Puttaswamy mandate to ensure the protection of personal data.

    Latest Draft Digital Data Protection Bill:

    The PDP Bill, 2019, prepared by MeitY, was referred to a Joint Parliamentary Committee (JPC) for review. JPC tabled the report of the JPC on the PDP Bill, 2019, as well as the draft Data Protection Bill 2021, in the parliament.

    On August 3 this year, MeitY withdrew the 2021 Bill, stating that a more “comprehensive legal framework” will be presented soon. This led to the current DPDP Bill, 2022.

    According to an explanatory note for the bill, it is based on seven principles:

    • Lawful use: The first is that “usage of personal data by organizations must be done in a manner that is lawful, fair to the individuals concerned and transparent to individuals.”
    • Purposeful dissemination: The second principle states that personal data must only be used for the purposes for which it was collected.
    • Data minimization: Bare minimum and only necessary data should be collected to fulfill a purpose.
    • Data accuracy: At the point of collection. There should not be any duplication.
    • Duration of storage: The fifth principle talks of how personal data that is collected cannot be “stored perpetually by default,” and storage should be limited to a fixed duration.
    • Authorized collection and processing: There should be reasonable safeguards to ensure there is “no unauthorized collection or processing of personal data.”
    • Accountability of users: The person who decides the purpose and means of the processing of personal data should be accountable for such processing.

    Key features of the bill

    Data Principal and Data Fiduciary

    • The bill uses the term “Data Principal” to denote the individual whose data is being collected.
    • The term “Data Fiduciary” the entity (can be an individual, company, firm, state etc.), which decides the “purpose and means of the processing of an individual’s personal data.”
    • The law also makes a recognition that in the case of children –defined as all users under the age of 18— their parents or lawful guardians will be considered their ‘Data Principals.’

    Defining personal data and its processing

    • Under the law, personal data is “any data by which or in relation to which an individual can be identified.”
    • Processing means “the entire cycle of operations that can be carried out in respect of personal data.”
    • So right from collection to storage of data would come under processing of data as per the bill.

    Individual’s informed consent

    • The bill also makes it clear that individual needs to give consent before their data is processed.
    • Every individual should know what items of personal data a Data Fiduciary wants to collect and the purpose of such collection and further processing.
    • Individuals also have the right to withdraw consent from a Data Fiduciary.
    • The bill also gives consumers the right to file a complaint against a ‘Data Fiduciary’ with the Data Protection Board in case they do not get a satisfactory response from the company.

    Language of information

    • The bill also ensures that individuals should be able to “access basic information” in languages specified in the eighth schedule of the Indian Constitution.
    • Further, the notice of data collection needs to be in clear and easy-to-understand language.

    Significant Data Fiduciaries

    • The bill also talks of ‘Significant Data Fiduciaries, who deal with a high volume of personal data.
    • The Central government will define who is designated under this category based on a number of factors ranging from the volume of personal data processed to the risk of harm to the potential impact on the sovereignty and integrity of India.

    Data protection officer & Data auditor

    • Such entities will have to appoint a ‘Data protection officer’ who will represent them.
    • They will be the point of contact for grievance redressal.
    • They will also have to appoint an independent Data auditor who shall evaluate their compliance with the act.

    Right to erase data, right to nominate

    • Data principals will have the right to demand the erasure and correction of data collected by the data fiduciary.
    • They will also have the right to nominate an individual who will exercise these rights in the event of death or incapacity of the data principal.

    Cross-border data transfer

    • The bill also allows for cross-border storage and transfer of data to “certain notified countries and territories.”
    • However, an assessment of relevant factors by the Central Government would precede such a notification.

    Financial penalties

    • The draft also proposes to impose significant penalties on businesses that undergo data breaches or fail to notify users when breaches happen.
    • Entities that fail to take “reasonable security safeguards” to prevent personal data breaches will be fined as high as Rs 250 crore.
    • As per the draft, the Data Protection Board — a new regulatory body to be set up by the government — can impose a penalty of up to ₹500 crore if non-compliance by a person is found to be significant.

    What distinguishes this bill from its earlier versions?

    • Gender neutrality:  Significantly, and for the first time in the country’s legislative history, the terms ‘her’ and ‘she’ have been used irrespective of an individual’s gender. This, as per the draft, is in line with the government’s philosophy of empowering women.
    • Imbibes best global practices: To prepare it, best global practices were considered, including a review of data protection legislations of Australia, the European Union (EU), Singapore, and a prospective one of the USA.
    • Comprehensiveness: The draft has outlined six ‘Chapters’ and a total of twenty-five points. The ‘Chapters’ are: ‘Preliminary,’ ‘Obligations of Data Fiduciary,’ ‘Rights and Duties of Data Principal,’ ‘Special Provisions,’ ‘Compliance Framework,’ and ‘Miscellaneous.’
    • Special emphasis for child protection: If personal data is likely to cause harm to a child, its processing will not be allowed.

    Positive aspects of the bill

    • Widening the scope of data: Narrowing the scope of the data protection regime to personal data protection is a welcome move, as it resonates with the concerns of various stakeholders.
    • Harnessing economic potential: Now non-personal data could be used to unlock social and economic value to benefit citizens, businesses, and communities in India with appropriate safeguards in place.
    • Doing away with an aggressive push for Data localisation:  Relaxing data localisation provisions to notify countries to which data can flow, could aid India in unlocking the comparative advantage of accessing innovative technological solutions from across the globe, which in turn helps domestic companies.
    • Free flow of data: In addition, the free flow of data will help startups access cost-effective technology and storage solutions, as our research shows.
    • Allowing data transfers: This will also ensure that India is not isolated from the global value chain, helping businesses stay resilient in production and supply chain management and fostering overseas collaboration.
    • Introduction of the concept of ‘Deemed Consent’: It enables the processing of the Personal Data of an individual without his/her explicit consent, where it is “reasonably expected that the Data owner would provide such Personal Data”.

    Some criticisms of the bill

    • Wordplay: There had been the use of open-ended language such as “as necessary” or “as may be prescribed”.
    • Govt monopoly: The Bill did not seem to work towards protecting people, but ensured that the government retains all power without any checks or balances.
    • Exemption provisions: The government has been given the power to exempt not only government agencies but any entity that is collecting user data, from having to comply with the provisions of this bill when it is signed into law.
    • No protection against data breach: The Executive in India has a track record of exploiting to expand its powers. There is no right for compensation to individuals in case of a data breach. They have no right to data portability.
    • Appointments to data protection board- The draft law leaves the appointment of the chairperson and members of the Data Protection Board entirely to the discretion of the central government. “While the Data Protection Authority was earlier envisaged to be a statutory authority (under the 2019 Bill), the Data Protection Board is now a central government set-up board.
    • Narrow Focus: It is focused on personal data and excludes non-personal data, which was a demand by the industry and civil society alike. It eliminates the categorisation of personal data into sensitive and critical.

    Global comparison: What other Nations data laws specify

    An estimated 137 out of 194 countries have put in place legislation to secure the protection of data and privacy, with Africa and Asia showing 61% (33 countries out of 54) and 57% adoption respectively, according to data from UNCTAD intergovernmental organisation within the United Nations Secretariat. 

    EU MODEL

    • The GDPR focuses on a comprehensive data protection law for the processing of personal data. It has been criticised for being excessively stringent and imposing many obligations on organisations processing data, but it is the template for most of the legislation drafted around the world.
    • There are certain exemptions such as national security, defence, public security, etc, but they are clearly defined and seen as exclusions on the periphery.

    US MODEL

    • Privacy protection is largely defined as “liberty protection” focused on the protection of the individual’s personal space from the government. It is viewed as being somewhat narrow in focus because it enables the collection of personal information as long as the individual is informed of such collection and use.
    • The US template has been viewed as inadequate in key respects of regulation. There is no comprehensive set of privacy rights or principles in the US that, like the EU’s GDPR, addresses the use, collection, and disclosure of data. Instead, there is limited sector-specific regulation.
    • The approach towards data protection is different for the public and private sectors. The activities and powers of the government vis-a-vis personal information are, however, sufficiently well-defined and addressed by broad legislation such as the Privacy Act, the Electronic Communications Privacy Act, etc. For the private sector, there are some sector-specific norms.

    CHINA MODEL

    • New Chinese laws on data privacy and security issued over the last 12 months include the Personal Information Protection Law (PIPL), which came into effect in November 2021.
    • It gives Chinese data principals new rights as it seeks to prevent the misuse of personal data. The Data Security Law (DSL), which came into force in September 2021, requires business data to be categorized by levels of importance and puts new restrictions on cross-border transfers. The law includes stringent penalties, with fines as high as RMB 50 million, or up to 5% of a company’s turnover in the previous financial year. 

    Way forward

    • Compensation for breach: A provision should be put in place in the law to compensate individuals in the event of a data breach as available in the EU’s GDPR.
    • Giving statutory status: to the proposed Data Protection Board for better functioning of the board and reduce executive interference. Appointments to the board should be done through a committee on similar lines to that of NHRC and other bodies.
    • More comprehensive: More provisions should be incorporated in the draft legislation rather than leaving it to the Executive to frame provisions.
    • Respecting privacy: Rights such as data portability and the right to opt-out of data collection must be included. The right to privacy must be respected which, critics argue, seems to be lacking in this case.

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  • 26th Nov 2022 | Prelims Daily with Previous Year Questions

    26th Nov 2022 | Prelims Daily with Previous Year Questions

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    [WpProQuiz_toplist 1172]

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  • Constitution Day: A rare, enduring document

    Constitution

    Context

    • On November 26, 1949, the Constituent Assembly of India adopted our Constitution. Hence, every year we celebrate this day as Constitution or Law Day. India’s Constitution has now endured for almost 73 years.

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    Did you know?

    • The original constitution of India was handwritten by Prem Behari Narain Raizada in a flowing italic style with beautiful calligraphy.
    • 2,000 Amendments were made to the 1st draft of the Constitution before it was finalized.

    Constitution

    Circumstances during the making of the constitution

    • Era of constitutional democracies: Constitution-making itself is a relatively unexceptional endeavor. Ginsburg, Elkins and Blount note that in the period from 1789–2005, 806 national constitutions were promulgated.
    • Shadow of partition: It was written under extraordinarily difficult conditions, The partition of India which resulted in the displacement of millions of people on both sides of the border.
    • Mass death and refugee crisis: Partition was accompanied by mass deaths, devastation, violence, and brutality. Amid all this, as refugees flowed into Delhi, our dual-purpose assembly, a parliament by morning and a constituent body in the afternoon drafted our enduring founding instrument. One that would remain relevant not just for the turbulence of that present, but also would be meaningful for future generations to come.
    • A lengthy process: Of the 148 cases, which were randomly chosen from 806, on average, the constitution-making process took 16 months. India’s constitution-making project took about three years from 1946 to 1949.

    Legitimacy of the constitution

    • Constitution narrates the story of people: It’s not only the text, but also the story crafted of the birth of a constitution that is critical in the internalization of a constitutional order by a people.
    • Legitimacy of constitution makers: The drafters deployed the considerable political goodwill enjoyed by key national leaders who were members of the assembly to give legitimacy to the Constitution.
    • Egalitarian foundation for decent nation: The Constitution reflects the will of the people, and how its egalitarian foundation would create a better, more decent nation.

    Constitution

    Influence of freedom movements on the crafting of the Constitution

    • Rise of constitutionalism: The freedom movement and resistance to colonial power was also good training for constitution-crafting. Dietmar Rothmund highlights the unique evolution of Indian constitutionalism, each set of reforms introduced by the British coloniser, while being designed to fulfil certain demands, leads to inspiring new agitations.
    • Tilak’s Swaraj Bill of 1895: As the legal historian Rohit De writes, the Constitution, had its inspiration in sources like Tilak’s Swaraj Bill of 1895 (which included rights to free speech, free press, equality before law) and the Declaration of Rights of 1918 (where the Indian National Congress demanded that civil and political rights to include the right to life and liberty, freedom of press and association and for all this to be included in the Government of India Act 1919).
    • Resolution of Fundamental Rights and Economic Changes:
    • Constitutional development that drew from the Resolution of Fundamental Rights and Economic Changes at the Karachi Session of the Congress in 1931. This resolution argues that “in order to end exploitation of the masses, political freedom must include economic freedom”.
    • Along with fundamental rights, it provided for ending of bonded and child labour, free primary education, expansion of labour welfare, regime protection labour unions, women workers, providing for redistribution of resources through state control over key industries and national resources, recognizing the communal problem and laying out protection of minority rights.

    Constitution

    Consensus based approach

    • It was also the consensus-oriented method that found favor with the Constituent Assembly that has helped our Constitution endure.
    • The framers appreciated the link between consensus in adoption and the legitimacy of the Constitution. For instance, when debating the adoption of Hindi as a national language, Rajendra Prasad, president of the Constituent Assembly, said that the choice of national language would have to be “carried out by the whole country”.
    • Even if a majority of the Assembly made a choice that was not approved by a section of the people, then, implementation of the Constitution would be rendered perilous. Hence, Hindi was made “the official language of the Union”, while English was retained to be used for all “official purposes”.

    Conclusion

    • India’s drafters and the methodologies they adopted to craft their glorious product, hold lessons for contemporary politicians and law makers. Consensus, craft and vision are invaluable while making an instrument to endure.

    Mains Question

    Q. Explain the impact of colonial legacy and freedom movement on drafting of constitution? What were the extra ordinary circumstances during the partition of India?

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  • Enhancing the credibility of the Election Commission (ECI)

    Election Commission

    Context

    • A vital issue of national importance dominating the headlines for the last three days is the PIL in the Supreme Court regarding the autonomy and neutrality of the Election Commission of India (ECI).

    Election Commission

    Constitutional mandate for Election Commission of India (ECI).

    • The Constitution intended the Election Commission to be fiercely independent and vested it with enormous powers of superintendence, direction and control over all elections.
    • The apex court has repeatedly adjudged these powers to be absolute and unquestionable.
    • It has declared Article 324 to be the reservoir of all powers of the ECI and has repeatedly declared free and fair elections to be part of the basic structure of the Constitution.

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    Back to basics: Appointment & Tenure of Commissioners

    • The President has the power to select Chief Election Commissioner and Election Commissioners.
    • They have tenure of six years, or up to the age of 65 years, whichever is earlier.
    • They have the same status and receive pay and perks as available to Judges of the Supreme Court of India.
    • The Chief Election Commissioner can be removed from office only through accusation by Parliament.
    • Election commissioner or a regional commissioner shall not be removed from office except on the recommendation of the Chief Election Commissioner.

    What are the issues regarding the appointment of the Election commissioners?

    • Flawed system of appointment of the Election Commissioners: They are appointed unilaterally by the government of the day.
    •  B. R. Ambedkar’s remark on tenure: Tenure B R Ambedkar’s statement to the Constituent Assembly “the tenure can’t be made a fixed and secure tenure if there is no provision in the Constitution to prevent a fool or a naive or a person who is likely to be under the thumb of the executive”
    • Uncertainty over the elevation: Uncertainty over the elevation of an Election Commissioner to the post of CEC, which makes them vulnerable to government pressure. They consider themselves on probation, always conscious of how their conduct is viewed by the government, which can exploit this fear. Since all three members have equal voting rights and all decisions in the commission are taken by the majority, the government can even control an independent-minded CEC through the majority voting power of the two Election Commissioners.

    Election Commission

    What are the demands for the appointment of EC’s?

    • Appointments through a broad-based consultation: There has been a demand for appointments through a broad-based consultation, including parliamentary scrutiny.
    • The Proposed mechanism: A collegium consisting of the Prime Minister, leader of the Opposition (LOP) and the Chief Justice of India (CJI).This system is already in operation for the appointment of the Central Vigilance Commissioner, Chief Information Commissioner and Director of the Central Bureau of Investigation.
    • The probable benefit of this mechanism: This will obviate the possibility of allegations against the incumbent of being partisan to the government. Opposition parties would not be able to raise a finger against the incumbent since the LOP would be a party to the selection.
    • Collegium system for appointing Election Commissioners: In its 255th Report, the Law Commission of India also recommended a collegium system for appointing Election Commissioners. Political stalwarts and many former CECs including BB Tandon, N Gopalaswami, TS Krishnamurthy supported the idea.
    • Extending protection to Election Commissioners: At present, only the CEC is protected from being removed (except through impeachment). One has to remember that the Constitution enabled protection for the CEC as it was initially a one-man Commission. Logically, this should have been extended to the other two Commissioners, who were added in 1993, as they collectively represent the ECI.

    Memory shot: Constitutional Provisions in short

    • 324: Functions of EC and its composition.
    • 325: One general electoral roll and equality among the citizens.
    • 326: Adult suffrage.
    • 327: Power to Parliament: To make provisions with respect to elections to federal and State Legislatures.
    • 328: Power to State Legislature: To make laws with respect to elections to such legislature.
    • 329: Bars interference by courts in electoral matters. Notwithstanding anything said in the constitution i.e., validity of any law relating to the delimitation of constituencies or the allotment of seats to such constituencies shall not be called in question in any court.

    Election Commission

    Added Information: Conditions for filing an Election Petition

    • No election to either House of Parliament or either House of the Legislature of a State shall be called in question except by an election petition.
    • Any elector or candidate can file an election petition on grounds of malpractice during the election.
    • In respect of elections to the Parliament and State Legislatures, they can only be filed before the High Court.
    • In respect of elections for the offices of President and Vice President, such petitions can only be filed before the Supreme Court.

    Conclusion

    • The recent questions raised about the ECI’s credibility are certainly worrisome. An ECI in office with the express consent of both the ruling and opposition parties is a great opportunity to convince the country and all the parties contesting the elections of its neutrality and impartiality.

    Mains Question

    Q. Election Commission of India, the most powerful in the world, is said to have the most flawed appointment system. What are the concerns and demands raised from time to time? Discuss

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  • States ask Centre to curb its ‘Cess’ habit

    cess

    Several States, including some governed by the Centre urged to rein in its reliance on raising revenues through cesses and surcharges which reduce their share in the divisible pool of taxes.

    What are Cesses and Surcharges?

    The Union government has the authority to collect money through a variety of levies referred to as a tax, fee, cess, and surcharge.

    (A) Cess

    • Cess is charged on the tax amount and is levied for a specific purpose.
    • In India, cess is applicable to all the taxpayers, and it is calculated over, and above the base tax liability of the taxpayer, cess taxes initially go to the consolidated fund of India (CFI) that has to be used for the purpose for which it was collected.
    • Education Cess, Swachh Bharat Cess

    (B) Surcharge

    • The surcharge is levied on the tax payable and not on the total income.
    • It directly goes to the CFI, and after that it can be used for any purpose, just like the normal tax.
    • Surcharge applies to the taxpayer whose income is more than Rs 50 lakh.
    • In simple terms, surcharge is a tax on tax that is not collected for any particular cause, and the union government may use the proceeds of surcharges for any purpose it sees as important.
    • The objective behind the surcharge is to put a high tax burden on people with high incomes.

    Difference between the two

    • The rate of cess under income tax is fixed at 4%, whereas the rate of surcharges varies from 10%, 15%, 25% & 37% based on the taxpayers’ total income.
    • Cess is calculated on total tax and surcharge amount; surcharge is calculated on total tax amount only.
    • In a nutshell, while both are taxes, cess is collected from every taxpayer to meet a certain purpose, and the surcharge is an additional tax collected from the taxpayers who have higher slab income.

    Key difference over which states dispute

    • Major difference is that each can be shared with the state government, the surcharge can be kept with CFI, and it can be utilised for other taxes.
    • However, cess should be utilised for a particular reason. This restricts the states expenditure.
    • Tamil Nadu noted that the share of cesses and surcharges had grown from 10.4% of gross tax revenue in 2011-12 to 26.7% in 2021-22.
    • This has deprived the States of their legitimate share of revenue collected by the Union Government.

     

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  • Government forms panel to look into MGNREGA’s efficacy

    mgnrega

    The Central government has constituted a panel to review the implementation and assess efficacy as a poverty alleviation tool of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme.

    About the review committee

    • The committee is headed by former Rural Development secretary Amarjeet Sinha.
    • It had its first meeting on November 21, 2022, and has been given three months to submit its suggestions.
    • It is tasked to study the various factors behind demand for MGNREGA work, expenditure trends and inter-State variations, and the composition of work.
    • It will suggest what changes in focus and governance structures are required to make MGNREGA more effective.

    What is MGNREGA?

    • The MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
    • This is labour law and social security measure that aims to guarantee the ‘Right to Work’.
    • The act was first proposed in 1991 by V. Narasimha Rao.

    What is so unique about it?

    • MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
    • The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
    • Any Indian citizen above the age of 18 years who resides in rural India can apply for the NREGA scheme. The applicant should have volunteered to do unskilled work.
    • Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
    • Thus, employment under MGNREGA is a legal entitlement.

    Why is MGNREGS under fire these days?

    • Not enough work: Bihar despite its levels of poverty, does not generate enough work to make a concrete difference, and on the other end of spectrum we have Kerala which is economically better but has been utilising it for asset creation.
    • No asset creation: There is a lack of tangible asset creation. The committee will study if the composition of work taken up presently under the scheme should be changed.

    Issues in implementation

    • Insufficient budgetary allocations: Increase in the nominal budget but actual budget (after adjusting inflation) decreased over the years.
    • Approved Labour Budget Constraints: The Centre through the arbitrary “Approved Labour Budget” has reduced the number of days of work and put a cap on funds through the National Electronic Fund Management System
    • Not so attractive wages rate: Currently, MGNREGA wage rates of 17 states are less than the corresponding state minimum wages.
    • Delay in wage payments: Under the MGNREGA, a worker is entitled to get his or her due wages within a fortnight of completion of work, failing which the worker is entitled to the compensation.
    • No-work situations are rising: None of the states was able to provide full 100 days employment as mentioned in the scheme.
    • Data manipulations by authorities: A recent study has found that data manipulation in the MGNREGA is leading to gross violations in its implementation.
    • Non-purposive spending and corruptions: Many works sanctioned under MGNREGA often seem to be non-purposive. Quite often, they are politically motivated hotspots to create rampant corruption.
    • Centralization weakening local governance: A real-time MIS-based implementation and a centralised payment system has further left the representatives of the Panchayati Raj Institutions with literally no role in implementation.

    Conclusion

    • Large scale social security programmes like MGNREA are subjected to undergo several stumbling blocks in the times of ongoing pandemic.
    • Government and NGOs must study the impact of MGNREGA in rural areas so as to ensure that this massive anti-poverty scheme is not getting diluted from its actual path.
    • We must view MGNREGA as an opportunity and explicitly include it in a broad-based strategy to tackle any socie-economic crisis.

     

    Answer this PYQ in the comment box:

    Q. Among the following who are eligible to benefit from the “Mahatma Gandhi national rural employment guarantee act”?

    (a) Adult members of only the scheduled caste and scheduled tribe households.

    (b) Adult members of below poverty line (BPL) households.

    (c) Adult members of households of all backward communities.

    (d) Adult members of any household.

     

    Post your answers here.

     

     

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  • Rationalization in long-term Capital Gains Tax structure on the anvil

    The Finance Ministry is looking at rationalizing long-term capital gains tax structure by bringing parity between similar asset classes and revising the base year for computing indexation benefits.

    What is Capital Gains Tax?

    • Capital gains tax is levied on the profits made on investments (Base Year: 2001).
    • It covers real estate, gold, stocks, mutual funds, and various other financial and non-financial assets.
    • Under the Income Tax Act, gains from sale of capital assets — both movable and immovable — are subject to ‘capital gains tax’.

    Types of CGT

    (A) STCG (Short-term capital asset)

    • An asset held for a period of 36 months or less is a short-term capital asset.
    • The criteria is 24 months for immovable properties such as land, building and house property from FY 2017-18.
    • For instance, if you sell house property after holding it for a period of 24 months, any income arising will be treated as a long-term capital gain, provided that property is sold after 31st March 2017.
    • The reduced period of the aforementioned 24 months is not applicable to movable property such as jewellery, debt-oriented mutual funds etc.

    Some assets are considered short-term capital assets when these are held for 12 months or less. This rule is applicable if the date of transfer is after 10th July 2014 (irrespective of what the date of purchase is). These assets are:

    1. Equity or preference shares in a company listed on a recognized stock exchange in India
    2. Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India
    3. Units of UTI, whether quoted or not
    4. Units of equity oriented mutual fund, whether quoted or not
    5. Zero coupon bonds, whether quoted or not

    (B)  LTCG (Long-term capital asset )

    • An asset held for more than 36 months is a long-term capital asset.
    • They will be classified as a long-term capital asset if held for more than 36 months as earlier.
    • Capital assets such as land, building and house property shall be considered as long-term capital asset if the owner holds it for a period of 24 months or more (from FY 2017-18).

    Whereas, below-listed assets if held for a period of more than 12 months, shall be considered as long-term capital asset.

    1. Equity or preference shares in a company listed on a recognized stock exchange in India
    2. Securities (like debentures, bonds, govt securities etc.) listed on a recognized stock exchange in India
    3. Units of UTI, whether quoted or not
    4. Units of equity oriented mutual fund, whether quoted or not
    5. Zero coupon bonds, whether quoted or not

    Why is it so complicated?

    Capital gains tax is complicated for a few primary reasons.

    • First, the rate changes from asset to asset. LTCG tax on stocks and equity mutual funds is 10% but on debt mutual funds is 20% with indexation.
    • Second, holding period changes from asset to asset. The holding period for LTCG tax is two years in real estate, one year for stocks, and three years for debt mutual funds and gold.
    • Third, exemptions available against it come with their own complex conditions. For instance, buying a house after selling one can get you an exemption, but the new house must be bought in two years or built in three years of the sale.

    Stipulated reforms by Finance Ministry

    • Currently, shares held for more than one year attract a 10% tax on long-term capital gains.
    • Gains arising from sale of immovable property and unlisted shares held for more than 2 years and debt instruments and jewellery held for over 3 years attract 20% long-term capital gains tax.
    • Also, a change in base year for computing inflation-adjusted capital gains is being contemplated.
    • The index year for capital gains tax calculation is revised periodically to make it more relevant. The last revision took place in 2017 when the base year was updated to 2001.
    • Since the prices of assets increase over time, the indexation is used to arrive at the inflation-adjusted purchasing price of assets to compute long-term capital gains for the purpose of taxation.

     

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  • Russia offers advanced nuclear fuel for Kudankulam Reactor

    The Russian state-owned nuclear energy corporation Rosatom has offered a more advanced fuel option to India’s largest nuclear power station at Kudankulam, which will allow its reactors to run for an extended 2-year cycle without stopping to load fresh fuel.

    What is the news?

    • Rosatom’s nuclear fuel division, TVEL Fuel Company, is the current supplier of TVS – 2 M fuel for the two VVER 1,000 MWe reactors generating power in the Kudankulam Nuclear Power Project (KKNPP).
    • This fuel has an 18-month fuel cycle, meaning that the reactor has to be stopped for fresh fuel loading every one-and-a-half years.
    • TVEL has now offered the more modern Advanced Technology Fuel (ATF), whose fuel cycle is a whopping 24 months.

    Benefits of the move

    • This fuel will ensure more efficiency and additional power generation due to the prolonged operation of the reactor.
    • It will result in sizable savings of the foreign exchange need to buy fresh fuel assemblies from Russia.

    What is the Nuclear Fuel Cycle?

    • The nuclear fuel cycle consists of front-end steps that prepare uranium for use in nuclear reactors and back-end steps to safely manage, prepare, and dispose of used—or spent—but still highly radioactive spent nuclear fuel.
    • Uranium is the most widely used fuel by nuclear power plants for nuclear fission.
    • Nuclear power plants use a certain type of uranium—U-235—as fuel because its atoms are easily split apart.
    • Although uranium is about 100 times more common than silver, U-235 is relatively rare at just over 0.7% of natural uranium.

    Steps involved in fuel enrichment

    • Uranium concentrate is separated from uranium ore at uranium mills or from a slurry at in-situ leaching facilities.
    • It is then processed in conversion and enrichment facilities, which increases the level of U-235 to 3%–5% for commercial nuclear reactors, and made into reactor fuel pellets and fuel rods in reactor fuel fabrication plants.
    • Nuclear fuel is loaded into reactors and used until the fuel assemblies become highly radioactive and must be removed for temporary storage and eventual disposal.
    • Chemical processing of spent fuel material to recover any remaining product that could undergo fission again in a new fuel assembly is technically feasible.

    Back2Basics: Uranium Enrichment

    • It is a process that is necessary to create an effective nuclear fuel out of mined uranium.
    • It involves increasing the percentage of uranium-235 which undergoes fission with thermal neutrons.
    • Nuclear fuel is mined from naturally occurring uranium ore deposits and then isolated through chemical reactions and separation processes.
    • These chemical processes used to separate the uranium from the ore are not to be confused with the physical and chemical processes used to enrich the uranium.

    Why is enrichment carried out?

    • Uranium found in nature consists largely of two isotopes, U-235 and U-238.
    • Natural uranium contains 0.7% of the U-235 isotope.
    • The remaining 99.3% is mostly the U-238 isotope which does not contribute directly to the fission process (though it does so indirectly by the formation of fissile isotopes of plutonium).
    • The production of energy in nuclear reactors is from the ‘fission’ or splitting of the U-235 atoms since it is the main fissile isotope of uranium.
    • Naturally occurring uranium does not have a high enough concentration of Uranium-235 at only about 0.72% with the remainder being Uranium-238.

     

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  • Supreme Court launches online RTI Portal

    The Supreme Court has launched an online portal that will help citizens file and access applications under the Right to Information (RTI) Act in matters related to the court

    What is the online RTI portal?

    • The online RTI portal has been initiated to make it convenient for people to access information about the Supreme Court.
    • So far, RTI applications at the Supreme Court had to be filed only via post.
    • Various public interest litigation (PILs) had been filed before the Supreme Court seeking an online RTI portal for the Court.
    • The online portal is likely to streamline responses of the Supreme Court under the Right to Information Act.

    How does the online portal work?

    • The online portal can be accessed at a dedicated url.
    • Essentially, the process of filing an RTI in the Supreme Court is the same as how one normally files the application.
    • This web portal can be used only by Indian citizens to file RTI applications, first appeals and to make payment for fees, and copying charges, under the Right to Information Act, 2005 (RTI Act).
    • An applicant must first register themselves in the web portal.

    Fees prescribed

    • The applicant can pay the prescribed fee through internet banking, credit/debit card of Master/Visa or UPI.
    • The fee per RTI application is ₹10.
    • Any applicant who is Below Poverty Line (BPL) is exempted to pay the application fee under the RTI Rules, 2012.

    Expected time for response

    • By law, RTIs must be replied to within 30 days.
    • In fact, in life and death cases, RTIs must be responded to within 48 hours.

    Back2Basics: Right to Information

    • RTI is an act of the parliament which sets out the rules and procedures regarding citizens’ right to information.
    • It replaced the former Freedom of Information Act, 2002.
    • Under the provisions of RTI Act, any citizen of India may request information from a “public authority” (a body of Government or “instrumentality of State”) which is required to reply expeditiously or within 30.
    • In case of the matter involving a petitioner’s life and liberty, the information has to be provided within 48 hours.
    • The Act also requires every public authority to computerize their records for wide dissemination and to proactively publish certain categories of information so that the citizens need minimum recourse to request for information formally.

     

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  • Transcend: Interview Guidance Program for UPSC CSE 2022 (Enroll here) | Fill DAF 2 with us

    Transcend: Interview Guidance Program for UPSC CSE 2022 (Enroll here) | Fill DAF 2 with us

    Let’s discuss & fill DAF-II

    Click on the button above to register and schedule a FREE mentorship call for UPSC Interviews 2022. Our team will reach out to you for DAF 2 curation.

    Hey future administrators! Today UPSC released a notification wherein they informed that UPSC results will be declared soon. You can read the notification below. It won’t be wrong to say that UPSC has rung the bells for you to start the interview preparation.

    And with this, we are excited to formally launch Transcend, our flagship Interview Guidance Program for UPSC CSE 2022.

    For the uninitiated (and veterans) as well, you must start by rethinking or curating your DAF-II, it will be released post-UPSC Mains 2022 result but why waste time?

    Careful filling of the DAF II is the first step to a great UPSC interview.

    Let’s discuss & fill DAF-II

    Just fill up the form above, we will get on a call and discuss the best ways to fill up the DAF 2, strategize your preparation, find out the weak areas, and get you a personalized mentor.

    These are some of the toppers from Civilsdaily IAS who were also a part of Transcend Interview Guidance Program 2022.

    We will have CivilsDaily’s Rankers to guide you for UPSC Interviews
    Let’s discuss & fill DAF-II

    Click on the button above to register and schedule a FREE mentorship call for UPSC Interviews 2022. Our team will reach out to you for DAF 2 curation.

    Program inclusion

    1. Mock interview and detailed analysis + feedback
    2. Most important issues coverage – current and structural
    3. DAF 2 curation
    4. Personalized mentorship
    5. DAF analysis and one-on-one sessions with mentors
    6. DAF-based personalized questionnaire
    7. Transcend Habitat group membership

    How to enroll?

    Let’s discuss & fill DAF-II

    This is a FREE program for UPSC aspirants who will clear the Mains 2022.

    Just click the above button and fill up the form.

    Our team will reach out to you. We will discuss how to best fill your DAF 2, what should be your next step and how to prepare for different aspects.

    Highlights of Transcend: Focused offerings for 3 distinct groups of IAS Mains-qualified aspirants

    1. Freshers
    2. Work Ex
    3. Veterans 

    Dedicated Habitat group, telephonic and zoom/google meet sessions, SWOT analysis via personalized questionnaire & in-person mock interviews with the panel.

    This year, we intend to raise the bar even higher by providing trailblazing professional, personalized mentorship. There are 3 broad categories into which the IAS Mains-qualified candidates are be divided:

    #1. Freshers: Facing 1st UPSC interview without work-ex

    These candidates have given dedicated and exclusive time to UPSC preparation, often right after their graduation. We also have candidates who decide for UPSC a little later in life. These candidates have a wide variety of backgrounds. Some have quit their jobs to prepare for CSE, some may have household and family responsibilities, etc.

    The interview, in the case of these aspirants, will focus on academics, mental alertness, critical power of assimilation, leadership and teamwork, variety and depth of interest, etc.

    Freshers have the advantage of ‘excitement’ and ‘happy-go-lucky’ attitude, but they also suffer from fear-of-the-unknown.

    For them, Transcend will revolve around psychological strengthening and belief formation besides personality development and polishing of soft skills.

    Let’s discuss & fill DAF-II

    Just click the above button and fill up the form.

    #2. Work-Experience: Facing 1st UPSC interview with work-ex

    The second category is of working professionals. These candidates have the advantages of leadership, tactfulness, foresight, and maturity. Of all other categories of candidates, the responses of working professionals are expected to be brief, well crafted, balanced, logical and reflecting emotional intelligence. Leadership is another area these aspirants are tested for.

    Transcend will focus intensely on each of these general traits. Stress will be on the trends highlighted by the latest research in these domains.

    #3. Veterans: Have faced the UPSC interview board in the past

    Candidates who have appeared in the UPSC interview, probably more than once; but have consistently scored low marks.

    Such a person has the advantage of the experience of the official set-up. She is aware of the entire process, her DAF and does not have fear-of-the-unknown. She has possibly taken mock interviews in her previous attempts but success eludes her owing to some fundamental flaw, which if unidentified, will compromise her chances yet again.

    For veterans, our Transcend mentors will analyze your DAF, previous mock interviews, transcript of real interview/s and will have detailed discussions to pinpoint the weakness. Then will follow the personalized recovery strategy.

    We are the only institution in this space that brings such high levels of clarity and purpose to the interview program.

    All in all, ‘Transcend’ from Civilsdaily is the finest tool you can choose to uncover the shimmering light of your personality and to realize the simmering desire of your heart.

    Take that final leap. You are in good hands now.

    What to expect in the coming weeks?

    #1. Once you submit your draft DAF 2 and other details on the link we will call you up and discuss your draft DAF 2. Also, we request you to send a video snippet (shot over a mobile selfie and sent via Whatsapp to this number or at atul[at]civilsdaily.com) on the questions listed below. These are basic, time tested questions that do not need any preparation but helps us understand your default presentation styles:

    1. Why do you want to join the civil services?
    2. Why should you be selected over the other candidates?
    3. Which in-service officer has inspired you the most and why?
    4. One feedback that you received from a friend, peer or superior that fundamentally changed the way you operate in the world or look at the world?

    We want you to be uninhibited, relaxed and natural when you make this video. All questions are compulsory (especially 2, 4 and 5).

    #2. We will get back to you with the feedback on your DAF and this video exercise.

    #3. Post that, your progress will be tracked in mock interviews and taken over the telephone, skype, and panel-driven mocks and you will be given access to interact with both our in-house mentors and industry experts to fine-tune your reasonings.

    We will work on your innate tendencies and help you carve out the best version of yourself.

    Let’s discuss & fill DAF-II

    If the form gives you any trouble, mail us at atul@civilsdaily.com

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