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  • [Burning Issue] Enforcement Directorate (ED): Dreaded nightmare of Indian Politicians & Businessmen

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    Context

    • The Enforcement Directorate (ED) is in the news now and often for summoning a range of personalities from politicians to celebrities as well as NGOs.
    • Many states often accuse the agency of being a tool used by the Centre to coercively engage politicians for vested interests.
    • The timing of the ED cases is making politicians see red. Opposition parties usually allege that raids by Central agencies like the ED and the CBI pick up the pace before crucial polls.

    Is the ED a tool to investigate financial skulduggery or a stick to browbeat opposition leaders? Let’s check.

    What is Enforcement Directorate (ED)?

    • ED was formed in 1957 to look into cases of foreign exchange-related violations, a civil provision.
    • It goes back to May 1, 1956, when an ‘Enforcement Unit’ was formed in the Department of Economic Affairs.
    • Now, the ED falls under the finance ministry’s Department of Revenue.
    • But in 2002, after the introduction of the PMLA, it started taking up cases of financial fraud and money laundering, which were of criminal nature.
    • It was then tasked for handling Exchange Control Laws violations under the Foreign Exchange Regulation Act (FERA).
    • Today, it is a multi-dimensional organisation investigating economic offences under the:
    1. Prevention of Money Laundering Act (PMLA)
    2. Fugitive Economic Offenders Act
    3. Foreign Exchange Management Act
    4. Foreign Exchange Regulation Act (FERA)

    Its establishment

    • When proceeds of crime (property/money) are generated, the best way to save that money is by parking it somewhere, so one is not answerable to anyone in the country.
    • Therefore, there was a need to control and prevent the laundering of money.
    • The PMLA was brought in for this exact reason in 2002, but was enacted only in 2005.
    • The objective was to prevent parking of the money outside India and to trace out the layering and the trail of money.
    • So as per the Act, the ED got its power to investigate under Sections 48 (authorities under act) and 49 (appointment and powers of authorities and other officers).

    At what stage does the ED step in when a crime is committed?

    • Whenever any offence is registered by a local police station, which has generated proceeds of crime over and above ₹1 crore, the investigating police officer forwards the details to the ED.
    • Alternately, if the offence comes under the knowledge of the Central agency, they can then call for the First Information Report (FIR) or the chargesheet if it has been filed directly by police officials.
    • This will be done to find out if any laundering has taken place.

    What differentiates the probe between the local police and officers of the ED?

    Case study:

    • If a theft has been committed in a nationalised bank, the local police station will first investigate the crime.
    • If it is learnt that the founder of the bank took all the money and kept it in his house, without being spent or used, then the crime is only theft and the ED won’t interfere because the amount has already been seized.
    • But if the amount which has been stolen is used after four years to purchase some properties, then the ill-gotten money is brought back in the market.
    • Or if the money is given to someone else to buy properties in different parts of the country, then there is ‘laundering’ of money.
    • Hence the ED will need to step in and look into the layering and attachment of properties to recover the money.
    • If jewellery costing ₹1 crore is stolen, police officers will investigate the theft. The ED, however, will attach assets of the accused to recover the amount of ₹1 crore.

    Roles and functions of the ED

    • Summon, Search and seizure: The ED carries out search (property) and seizure (money/documents) after it has decided that the money has been laundered, under Section 16 (power of survey) and Section 17 (search and seizure) of the PMLA.
    • Arrest and detentions: On the basis of that, the authorities will decide if an arrest is needed as per Section 19 (power of arrest).
    • Attachment of property: Under Section 50, the ED can also directly carry out search and seizure without calling the person for questioning. It is not necessary to summon the person first and then start with the search and seizure.
    • Filing of chargesheet: If the person is arrested, the ED gets 60 days to file the prosecution complaint (chargesheet) as the punishment under PMLA doesn’t go beyond seven years.

    Centrestage of our debate: Over-reach by Investigation Agencies

    Why is ED comes to picture frequently?

    Ans. Money laundering

    • Money laundering is the process of making significant amounts of money obtained through criminal activities, such as drug trafficking or terrorist funding, appear to have come from a legitimate source.
    • As a result, it provides an incentive for money launderers to “legitimize” their ill-gotten gains through money laundering.
    • The money generated is referred to as ‘dirty money,’ and money laundering is the act of converting ‘dirty money’ into ‘legitimate’ money.
    Prevention of Money Laundering Act (PMLA)

    PMLA, 2002 is an Act of the Parliament of India enacted by the NDA government to prevent money laundering and to provide for the confiscation of property derived from money laundering.
    It was enacted in response to India’s global commitment (including the Vienna Convention) to combat the menace of money laundering.
    PMLA and the Rules notified there under came into force with effect from July 1, 2005.
    The act was amended in the year 2005, 2009 and 2012.

    Why ED mostly grips Politicians?

    • Exposing rampant corruption: It is not always ironic to say that most politicians are never corrupt. We have a very inglorious past of political corruption.
    • Selective witch-hunt: The ED has often been attacked for initiating investigations, raiding and questioning leaders of opposition parties, be it under the current regime or under past governments.

    Issues with PMLA

    • Misuse of central agencies: PMLA is being pulled into the investigation of even ordinary crimes by the Enforcement Directorate.
    • Seizing of assets: Assets of genuine victims have been attached. The ED could just walk into anybody’s house.
    • Politically motivated raids: In all this, the fundamental purpose of PMLA to investigate the conversion of “illegitimate money into legitimate money” was lost.
    • Opacity of charges: Petitioners pointed out that even the Enforcement Case Information Report (ECIR) – an equivalent of the FIR – is considered an “internal document” and not given to the accused.
    • Vagueness over evidence: The accused is called upon to make statements that are treated as admissible in evidence.
    • Harassment: The ED begins to summon accused persons and seeks details of all their financial transactions and of their family members.
    • Against individual liberty: The initiation of an investigation by the ED has consequences that have the potential of curtailing the liberty of an individual.

    Allegations against ED

    • Huge discretions: The ED is the only Central agency in the country that does not require permission from the government to summon or prosecute politicians or government functionaries for committing economic offences like money laundering.
    • Used for petty crimes: PMLA is pulled into the investigation of even “ordinary” crimes and assets of genuine victims have been attached.
    • Actual purpose denigrated: PMLA was a comprehensive penal statute to counter the threat of money laundering, specifically stemming from the trade in narcotics.
    • Violations of Rights: PMLA was enacted in response to India’s global commitment to combat the menace of money laundering. Instead, rights have been “cribbed, cabined and confined”.
    • Functional opacity: There is also a lack of clarity about ED’s selection of cases to investigate. We often see ED raiding houses of opposition parties suddenly.
    • Poor rate of conviction: We have hardly read the conclusion of cases by ED. Meantime media-trial tears off the accused person’s credibility which is the most desired intent.
    • Under-trials and slower prosecution: ED has been focusing on keeping the accused in custody rather than actually proving the charges against them.

    Challenges to ED

    • ED being dragged to court: The petitions against the ED had the effect of slowing down the investigations, as officers have to defend themselves in court.
    • Foul crying politicians: There are attempts to cover up unexplained, high-value transactions that fall within the PMLA’s ambit
    • Investigation of foreign transactions: Getting information on accounts and money stashed abroad to establish a trail is the biggest challenge they face.

    Way forward

    • The fight against corruption is intimately linked with the reform of the investigations.
    • Therefore the adjudicating authorities must work in cooperation and ensure the highest standards of transparency and fairness.
    • ED has been walking a tightrope to safeguard its integrity by speeding up investigations and court procedures.
    • The need of the hour could be systemic fixes—and not shrill calls to throw the baby out with the bathwater.
    • It is unlikely that corruption can be substantially reduced without modifying the way government agencies operate.

    Conclusion

    • What the ED is caught in is really an image crisis.
    • The trust in premier investigating institutions, and their credibility, is at stake.
  • The West has a chance to wean India off Russian weaponry

    Context

    Perturbed by India’s reluctance to condemn the Russian invasion of Ukraine and keen to bind the country closer in confronting China, Western governments have launched a fresh push to wean India, the world’s biggest importer of arms, off its long dependence on Russian weaponry.

    India’s concerns after Ukraine war

    • India has grown increasingly alarmed about China, following deadly border clashes in 2020.
    • Since the war in Ukraine began, it has also worried about Russia’s reliability as an arms supplier and about the quality of some of its weapons.
    • Diversification away from Russia: India, though insistent that it has every right to choose its own suppliers, is already diversifying away from Russia. 
    • The share of weapons it imports from Russia has fallen sharply, to around 50% between 2016 and 2021, down from 70% during the previous five-year period.
    • Western help for diversification: It has welcomed Western help in fulfilling its ambition to make more of its own weapons.

    Joint arms production plan

    • As the West cannot compete with Russia on price and remain reluctant to share their most cutting-edge technology, they are counting on joint arms production.
    • Western leaders have been vocal about their willingness to help India arm itself.
    • At a ministerial meeting in Washington in April, American officials discussed helping India to make advanced weapons, including reconnaissance aircraft and a system for combating aerial drones.
    • On visits to Delhi that month, Boris Johnson, Britain’s prime minister, and Ursula von der Leyen, the European Commission’s president, also proposed joint arms ventures.
    • Despite avowed interest from both sides, such a shift faces many challenges.

    Challenges

    • Dominance of PSUs: India’s arms industry, technically open to private investment since 2001, has long been hampered by the dominance of a small number of state-owned giants such as Hindustan Aeronautics Limited (HAL).
    • Inefficiencies: State-owned arms-makers remain notoriously inefficient.
    • They also retain long-running tie-ups with Russia, making Western governments wary of accepting India’s demands for the transfer of more advanced technology.
    • Low presence of private sector: The share of defence production in the hands of the private sector, which is a more natural partner for big Western defence manufacturers, is about a fifth—scarcely higher than it was five years ago.
    • Lack of industrial capacity and skill: Both the state and private sector still lack the industrial capacity and skilled workers to produce highly specialised defence technology at scale—especially military aircraft.
    • Trust issue: While Western companies worry about inadvertent technology transfers to Russia, India worries about the reliability of its Western partners.
    • Past record: Many see America, which in the past has imposed sanctions on India for its nuclear-weapons programme, as a fickle supplier.
    • More recently America refused to sell India its Patriot missile system, prompting India to fall back on a Russian alternative and thereby put itself at risk of American sanctions once more.

    Way forward

    • Liberalisation of defence sector: As a step to liberalise the industry as part of his push towards self-reliance, in 2020 India raised the limit on foreign ownership of defence firms from 49% to 74%.
    • Ordinance Factory Board was dissolved into small units to corporatize the entity.
    • Lockheed Martin, a big American defence manufacturer, last year approved the manufacture of wings for the f-16 fighter jet by its joint venture with Tata.
    • The company has also pledged to produce a more advanced fighter, the f-21, in India, provided it wins a multi-billion-dollar contract to supply 114 fighter jets.
    • Big deals like those would provide incentives for foreign governments to approve more technology transfer and for Western manufacturers to make the investments needed to spur India’s indigenisation drive.

    Conclusion

    Russia’s war and China’s muscle-flexing have opened a door for India and the West to walk through, but crossing the threshold will require some resolve on both sides.

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  • As GST compensation ends, state governments need to be provided certainty of revenues

    Context

    The five-year transition period after the adoption of the Goods and Services Tax (GST) on July 1, 2017, came to an end on June 30, 2022. With this, the era of GST compensation that the state governments were entitled to has ended.

    High estimated loan issuance

    • Many state governments have asked for the compensation period to be extended by a few years.
    • To tangibly assess the near-term outlook for state finances, we have to rely on the states’ own estimates for their market borrowing requirements for the second quarter of 2022-23.
    • The indicative calendar of market borrowings by 23 state governments and two Union territories for the second quarter has pegged their total state development loan issuance — the primary source of financing state government deficits — at Rs 2.1 trillion.
    •  This projected issuance is 29 per cent higher than the same period last year, and at an eight-quarter high.
    • This high level of issuance projected by states reflects concerns that some of them might rightfully have regarding the uncertainty of their cash flows in the post-GST compensation era.
    • High dependence on GST compensation: Of these 23 states, Tamil Nadu, Andhra Pradesh, Haryana, Punjab and Gujarat have indicated large increases in borrowings.
    • Most of these states have an above-average dependence on GST compensation.

    Implications of discontinuation of GST compensation

    • Alter the revenue compensation: The discontinuation of the GST compensation flows would alter the revenue composition of some states adversely, particularly those with a relatively larger share of such receipts in their overall revenue streams.
    • Increase in debt level: To offset a portion of the associated revenue loss, such states are likely to enhance their borrowings and/or to undertake some expenditure adjustments in the quarters ahead.

    Adjustment of borrowing limit of the States by the Centre

    • At the time of communicating to states their annual borrowing limits for the ongoing year, we understand that the Centre had informed state governments that their off-budget borrowings for the past two years (2020-21 and 2021-22) would be adjusted from their borrowing ceiling this year.
    • Data on off-budget borrowing: It appears that the calculation of the adjusted borrowing limit required the submission of detailed data by the state governments related to their off-budget borrowings for the last two fiscal years, followed by a thorough assessment of the same by the Centre.

    Need for early step up in tax-devolution

    • On the whole, though, states appear to have entered the year with a comfortable cash flow position.
    • This follows from the back-ended release of the tax devolution to states for 2021-22 — nearly half of the full-year amount was released in the fourth quarter.
    • Additionally, the total amount was also well above the revised estimate, providing an unexpected gain to states.
    • This may have allowed them to temporarily withstand the changes related to their borrowing permission.
    • Subsequently, the release of the GST compensation grant of Rs 869 billion for several months in May is likely to have further eased their cash flows.
    • If the government does decide to step-up tax devolution to the states in the near term, instead of back-ending it as was done in the last year, it may reduce the size of state borrowings in the second quarter.
    • But more significantly, such revenue certainty, despite the end of the GST compensation era, may embolden states to ringfence their capital spending, providing a positive impulse to the economy.

    Conclusion

    The discontinuation of the GST compensation flows would alter the revenue composition of some states adversely, tax devolution to the states in the near term could cushion the blow of the discontinuation.

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    Back2Basics: Compensation under GST regime

    • The adoption of the GST was made possible by the States ceding almost all their powers to impose local-level indirect taxes and agreeing to let the prevailing multiplicity of imposts be subsumed under the GST.
    • While the States would receive the SGST (State GST) component of the GST, and a share of the IGST (Integrated GST), it was agreed that revenue shortfalls arising from the transition to the new indirect taxes regime would be made good from a pooled GST Compensation Fund for a period of five years that is set to end in 2022.
    • This corpus in turn is funded through a compensation cess that is levied on so-called ‘demerit’ goods.
    • This GST Compensation Cess or GST Cess is levied on five products considered to be ‘sin’ or luxury as mentioned in the GST (Compensation to States) Act, 2017 and includes items such as- Pan Masala, Tobacco, and Automobiles etc.
  • (Live Now) Imp Webinar #UPSCskill: LIVE Answer Writing for UPSC Mains PYQs | Tackling GS Paper 4 – Ethics Case studies and Theories | Register-Get Free Resources

    (Live Now) Imp Webinar #UPSCskill: LIVE Answer Writing for UPSC Mains PYQs | Tackling GS Paper 4 – Ethics Case studies and Theories | Register-Get Free Resources

    Join Zoom Meeting

    https://us06web.zoom.us/j/87196341775?pwd=Qlh1WC9BMk9iMkxydmZJbWwyaGZJdz09
    Meeting ID: 871 9634 1775 Passcode: 924329

    Register and submit your query and get Telegram group + access to FREE resources. Dinesh sir will also share a special compilation of PDF with you post-webinar.


    Ethics paper in UPSC mains is designed to evaluate the ‘Ethical Competence’ and not the bookish knowledge about ‘Ethics’. There are certain skills you need to master Answer Writing for Paper-4.

    • How to Complete the paper on time even if all questions are not known? Completion of the entire question paper is needful. UPSC doesn’t look for the best answers. It wants the appropriate usage. So, how to illustrate values in the simplest and in the least possible words in time is going to be elaborated in this live session.
    • How to write ethics-oriented answers even though questions could have been asked in other GS papers. Ethics norms instruct about right or wrong. So, how to charge your answers with ‘Transparency’, ‘Accountability’, and ‘Right Attitude’ is surely focused in the webinar
    • Writing course of action of case studies in most ethical ways along with practical approach. Even an ideal solution wouldn’t fetch marks, if it seems unworkable. Focusing this, How to frame your answers based on peripheral problems in a case study will be discussed.
    • How to use examples and can make our own examples. The best possible ways of creating the most relevant experiences/examples from current, social issues, professional life, your area of interest, etc. will surely be talked over here.
    • How to have a grip on recent trends in Ethics paper!
    • Do and don’t of ethics paper. The most common mistakes will also be discussed. Mistake-prone: If there are no real-life cases, never let it go without them. Be prepared to make your point from the lives of social reformers, leaders, civil servants, etc., and other respected people.

    It is easier said than done. It takes a certain level of knowledge, experience, and practice. But, like any other skill, it could be learned and mastered under a teacher/mentor. 


    Webinar on 11th July, 7 pm – Sunday

    Dinesh Sharma sir will be taking a LIVE webinar on coming Monday. This is a must for those who want to learn and master Answer Writing skill to score 110+. We will be taking up and solving LIVE previous year’s UPSC Mains question and case studies for Ethics questions.

    Register for the webinar. Submit your query and get Telegram group + access to FREE resources. Dinesh sir will also share a special compilation of PDFs with you post-webinar.

    About Dinesh Sharma sir

    Dinesh sir is a senior IAS mentor at CivilsDaily and he has been mentoring UPSC aspirants and rankers for more than 4 years now. Dinesh sir has an experience of 2 UPSC interviews and 3 UPSC Mains. He is a passionate mentor and has students’ interests in mind always. He is a public policy enthusiast and is always ready to counsel or mentor UPSC aspirants.


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    Quora Digests:

  • The road to productivity

    Context

    The commute time for the labour force to the workplace plays a very important role in determining their productivity in cities.

    Issue of long travel time to work

    • Labour market: Cities are labour markets where the labour force exchanges their labour and creates knowledge spillovers.
    • Relation between commute time and productivity: The commute time for the labour force to the workplace plays a very important role in determining their productivity in cities.
    •  The longer the commute time in a city, the smaller is its effective labour market and vice-versa.
    • Difference between nominal and effective labour market: While the nominal labour market of the city refers to all jobs created in the metropolitan area, the effective labour market refers to the jobs accessible within a certain commute.
    • Importance of effective labour market: The larger a city’s effective labour market, the greater its agglomeration economies and knowledge spillovers will be.
    • From the viewpoint of enlarging a city’s effective labour market and economic output, it is therefore very important to keep the commute time short and commuting cost cheap within a city as it keeps growing in population.

    Way forward

    • One way in which urban local bodies (ULBs) directly impact the city’s economic output is through their infrastructure.
    • Increase in tax base: Road length has a positive effect on the city’s tax base.
    • Motivation to pay texes: This is because roads lead to easy access to jobs and increased economic activity; that also gives the public more confidence and motivation to pay taxes.
    • Cities should not view investment in road networks as expenditure; rather, roads add to the city’s revenue base which the city can use to improve infrastructure and public services.

    Conclusion

    Investing in roads not only reduces travel time and enlarges effective labour markets of cities and their economic output, but also improves access to schooling for children as well as healthcare, thereby upgrading human development. This is indeed the road to the $5 trillion economy along with improvement in human well-being.

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  • 11th July 2022| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1         Modern Indian history from about the middle of the eighteenth century until the present – significant events, personalities, issues.

    GS-2         Parliament and State Legislatures

    GS-3        Conservation, environmental pollution and degradation, environmental impact assessment.

    GS-4        Ethics & Human Interface

    Question 1)

     

    Q.1 Among the major legacies of the Indian freedom movement, civil liberties formed an important one. Analyze. (10 Marks)

     

    Question 2)

    Q. 2 Examine the significance of political parties in India. What are the legal provisions to deal with a split in political parties. (10 Marks)

    Question 3)

    Q.3 What is forest landscape restoration? How it is different from traditional approach to afforestation? (10 Marks)

    Question 4)  

    Q.4 Family values influence the decisions individuals make both within the family structure and outside of it. Do you agree with the statement? Justify with relevant examples. (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  February is uploaded on 11th February then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th February is uploaded on 13th February , then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    1. For the philosophy of AWE and payment: 

  • Proposed Amendments to the Environment (Protection) Act, 1986

    The Ministry of Environment, Forest and Climate Change (MoEFCC), put out a note, proposing amendments in the Environment (Protection) Act, 1986.

    Environment Protection Act (EPA), 1986

    • EP Act was passed under Article 253 of the Constitution, which empowers the Centre to enact laws to give effect to international agreements signed by the country.
    • The purpose of the Act is to implement the decisions of the UN Conference on the Human Environment.
    • They relate to the protection and improvement of the human environment and the prevention of hazards to human beings, other living creatures, plants and property.
    • It was enacted in 1986 on the backdrop of Bhopal Gas Tragedy.
    • The Act was last amended in 1991.

    Why this Act?

    • The Act is an “umbrella” legislation that has provided a framework for the environmental regulation regime in India.
    • It covers all major industrial and infrastructure activities and prohibits and regulates specific activities in coastal areas and eco-sensitive areas.
    • The Act also provides for coordination of the activities of various central and state authorities established under other environment-related laws, such as the Water Act and the Air Act.

    What are the proposed amendments?

    • The Environment Ministry has proposed amendments in four key legislations:
    1. Environment (Protection) Act, 1986
    2. Water (Prevention and Control of Pollution) Act, 1974
    3. Air (Prevention and Control of Pollution) Act, 1981 and
    4. Public Liability Insurance (PLI) Act, 1991
    • These are the cornerstone environmental laws that led to the setting up of the Central Pollution Control Board (CPCB).
    • These laws empowered the CPCB to take criminal action against individuals and corporate bodies who pollute air, water and land.

    Powers given to CPCB by these Laws

    • The clutch of laws currently empowers the CPCB to either:
    1. Shut down a polluting industrial body or
    2. Imprison executives of an organization found to be environmental violators
    • The EPA currently says that violators face imprisonment up to five years or a fine up to ₹1 lakh or both.
    • There’s also a provision for the jail term to extend to seven years.

    Purpose of the Amendments

    • The Environment Ministry had received suggestions to decriminalise existing provisions of the EPA to weed out “fear of imprisonment for simple violations.”
    • These, however, don’t apply to violations that cause grave injury or loss of life.

    How will violators be punished?

    • The changes proposed include the appointment of an ‘adjudication officer’.
    • He/She will decide on the penalty in cases of environmental violations such as reports not being submitted or information not provided when demanded.
    • Funds collected as penalties would be accrued in an “Environmental Protection Fund.”
    • In case of contraventions of the Act, the penalties could extend to anywhere from 5 lakh to 5 crore, the proposal notes.

    Need for such amendments

    • Limited success of existing laws: The history of environmental action and its success in India shows that the current laws have had limited effectiveness.
    • Backlog of cases: An analysis by the Centre for Science and Environment found that Indian courts took between 9-33 years to clear a backlog of cases for environmental violations.
    • Capitalist power: Myriad challenges dogged the process of bringing violators to book.
    • Red tapism: Flag pollution from an industrial unit would mean filing a complaint with the court of the concerned DM, or furnishing evidence to the CPCB which would again have to approach the same institution.
    • Burden of proof: In most cases, it was practically impossible to hold a specific individual in an organization responsible for a specific crime given the burden of proof required.

     

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  • Centre releases guidelines for Mission Vatsalya

    In order to access Central funds and benefits under Mission Vatsalya (an umbrella scheme for child protection services in the country), the centre has issued certain guidelines.

    What is Mission Vatsalya?

    • Mission Vatsalya promotes family-based non-institutional care of children in difficult circumstances based on the principle of institutionalization of children as a measure of last resort.
    • It is one of the new triad of schemes along with Mission Shakti, and Poshan 2.0, that aims at securing a healthy and happy childhood for every child.

    Components under the mission include:

    1. Improve the functioning of statutory bodies;
    2. Strengthen service delivery structures;
    3. Upscale institutional care/services;
    4. Encourage non-institutional community-based care;
    5. Emergency outreach services;
    6. Training and capacity building.

    Implementation

    • It will be implemented as a Centrally Sponsored Scheme in partnership with state governments and UT administrations, with a fund-sharing pattern in a 60:40 ratio.
    • However, for the eight states in the Northeast — as well as Himachal Pradesh, Uttarakhand and the UT of J&K — the Centre and state/UT’s share will be 90:10.
    • The Centre will cover the whole cost in UTs without a legislature.

    What are the new guidelines?

    (1) Official changes

    • States will have to retain the official name, as given by the Centre. Only a correct translation to local language is permissible.
    • The centre detailed the process by which funds will be disbursed to states under various heads by defining institutionalised arrangements.
    • Funds to states will be approved through the Mission Vatsalya Project Approval Board (PAB), which will be chaired by the Secretary of the Ministry of WCD.
    • The Secretary will scrutinise and approve annual plans and financial proposals received from states and UTs for release of grants.

    (2) Special arrangements

    • States/UTs have also been directed to focus on special needs children with physical or mental disabilities.
    • Institutions now have to provide special educators, therapists and nurses to impart occupational therapy, speech therapy, verbal therapy and other remedial classes.
    • The staff in these special units will have to know sign language, Braille, etc, according to the new guidelines.

    (3) Newly shouldered tasks

    • The guidelines state that Mission Vatsalya will support State Adoption Resource Agencies (SARA), which will support the Central Adoption Resource Authority (CARA).
    • This move aims at promoting in-country adoption and regulating inter-country adoption.
    • Mission Vatsalya, in partnership with states and districts, will execute a 24×7 helpline service for children, as defined under JJ Act, 2015.

    Name change saga: Child Protection Services Scheme

    • Before 2009, three schemes were being implemented under the WCD Ministry for children in need of protection:
    1. Programme for juvenile justice for children in need of care and protection, and children in conflict with law;
    2. Integrated programme for street children and
    3. Scheme for assistance to homes for children
    • These were clubbed in 2010 into a single scheme called the Integrated Child Protection Scheme.
    • It was then renamed “Child Protection Services” Scheme in 2017, and again as Mission Vatsalya in 2021-22.