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  • 29 March 2020 | Nikaalo Prelims Quiz-Polity Test 2: Laxmikant (From Local Government to the end))

    [WpProQuiz 389]

  • Will RBI’s big-bang monetary easing work?

    Context

    On Tuesday, the Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) convened for an emergency meeting, ahead of schedule, to discuss its response to the economic challenges posed by the Covid-19 outbreak.

    Bond market reaction to the RBI announcement

    • The MPC deliberated for three full days, but its decision would most probably have been sealed right at the onset.
    • For that day, the Indian bond market saw no trades in the first twenty minutes.
    • Fear and uncertainty in the market: The gap between the asking price and bids was so wide that the first trade for the day took place at 9:33 am. Gripped by uncertainty and fear about the future following the outbreak, the market had frozen.

    Measures by the RBI

    • Injecting the liquidity of Rs. 3.74 trillion: Responding to the market signal, the RBI rolled out a slew of measures from its armoury that will release liquidity of up to ₹3.74 trillion, or nearly 2% of gross domestic product, in the financial system.
    • This will facilitate the market’s orderly functioning.
    • Condition on LTRO-created-liquidity: In particular, the condition that the liquidity created through the Long Term Repo Operations (LTRO) tool must only be deployed in corporate debt securities was a direct response to the disruption in the markets seeing heavy sell-offs in the midst of thin trading volumes.
    • Comparison with measures by the Fed.: The US Federal Reserve, which has launched an unconventional asset sales programme for $4 trillion, has announced it will also directly buy corporate bonds to ease the tight market.
    • RBI has refrained from following suit, instead of passing the buck to banks via the conditional LTRO liquidity.
    • Banks are unlikely to step in to ease the tight corporate securities market.
    • Repo rate below the level seen in 2008: To combat the economic consequences of the Covid-19 pandemic, the MPC has dropped its policy interest rate by 75 basis points, taking it down to 4.4%, a multi-year low.
    • The rate is now lower than it was in April 2009, when the central bank had taken it down to 75%, responding to the global financial crisis.
    • In 2008, just four days ahead of a scheduled policy review, RBI had cut the policy repo rate by 1 percentage point, sending an extraordinarily strong signal.

    How the challenge this time is different from the 2008 crisis?

    • The nature of the current economic challenge is a lot different.
    • Economy at standstill: The shock back then had depressed demand, but the economy had not been brought to a standstill as it has now, with resources, including labour and capacities idling.

    Why the measures would not kickstart the economy

    • Effect of rate cut: When all economic activity has halted, and uncertainty about the future is soaring, there’s no way a rate cut—no matter how steep—can kickstart the economy.
    • Businesses cannot plan for the future and will not borrow.
    • Banks will hold on too, fearful of the risk of loans going bad.
    • As it is, even before Covid-19 struck, credit disbursement was sluggish.
    • Now, with a host of companies facing the threat of credit rating downgrades, the probability of lenders turning a little less risk-averse is even lower.
    • Who would be the beneficiary of the rate cut? The biggest beneficiary of RBI’s rate cut—which was bigger than market expectations—would be the government.
    • Reduced borrowing cost for the government: In one stroke, the MPC has altered the fiscal deficit calculation by reducing the government’s borrowing cost.
    • There will be savings on its outgo on interest payments for new and rollover borrowings.

    Three-month moratorium and issue with it

    • RBI also permitted banks and non-bank financial institutions to grant a three-month moratorium on loan repayments and reclassification of stressed loans as non-performing assets (NPAs).
    • This will provide relief by cushioning cash flow pressures for firms and individuals when incomes and revenues have dropped sharply due to the lockdown.
    • The forbearance on downgrading these loans will prevent a sharp spike in NPA levels for banks and NBFCs.
    • There could be a sharp rise in the bad loans: The risk now is that a few quarters after the end of the moratorium there could be a sharp rise in bad loans.
    • It could give rise to the NPA problem: In that sense, it amounts to kicking the problem of a potential spike in NPAs down the road.
    • The problem of evergreening: On balance, it is the right call given the extraordinary challenge of the lockdown—provided a new cycle of evergreening of loans by banks is not allowed in a repeat of what happened in the aftermath of the global financial crisis.

    Way forward

    • What more could RBI have done? Special credit windows for the worst-hit sectors like aviation, hotels and tourism may soon be required.

    Conclusion

    While prioritising financial stability is fine, the MPC’s inflation projection is puzzling. While refraining from providing estimates on growth and inflation, given that the spread, intensity and duration of Covid-19 remain uncertain, RBI said it expects food price pressures to soften going ahead on account of a blow to demand during the lockdown. The projection seems unreasonable when there are unprecedented supply-side bottlenecks.

  • [Burning Issue] Economic Impact of Coronavirus in India and Government’s intervention (PART I)

    It’s life itself that is affected, profoundly so and almost from a genetic level. And that means at every other extended level of human experience. Emotional and psychological, to begin with, and from there to what we go about doing with our daily lives. Earning their bread, trying to survive-or thrive.

    The coronavirus or COVID-19 has brought life to a near standstill in almost every part of the world. The virus, which has originated in central China’s Hubei Province has claimed more than 20,000 lives so far and continues to adversely affect more than 150 countries globally.

    It is a matter of no debate that we have entered a phase of the global recession which will be worse than in 2009.

    Context

    • Ever since the Janata Curfew, there were demands that the government should come out with a relief package for the poor, as well as those in the informal sector, which accounts for 90 per cent of all jobs in the country — the demands increased after PM announced a 21-day national lockdown.
    • Our Finance Minister has announced the Prime Minister’s Garib Kalyan package — a range of measures that will take to alleviate the economic, health, and food-related distress of India’s poor in the wake of this national lockdown.

    Prime Minister’s Garib Kalyan package

    The relief package is primarily targeted towards the firms in the organised sector of the economy.  There are five elements to the PMGK package.

    1. Medical insurance cover of Rs 50 lakh for all health workers (doctors, paramedics, Asha workers etc.) treating patients.
    2. Help for the poor and those engaged in the unorganised sector.
    3. Help for the poor engaged in the organised sector.
    4. Help for construction workers.
    5. Use the money already available in the “district (-level) mineral fund” to pay for medical testing and screening for the coronavirus.

    (A) For poor and those in unorganised sector

    The help is in two ways — free food grains, and cash transfers.

    1) Food assistance

    • The central government, working with the state governments, will provide an additional quota of food grains free of cost to all 80 crore beneficiaries under the Public Distribution System.
    • As such, PDS beneficiaries will get 5 kg of wheat (or rice) per month for the next three months.
    • Additionally, each household (or family) — typically, a household is assumed to have 5 members — will get 1 kg of pulses per month.

    2) Monetary assistance

    The government announced 6 types of additional cash transfers. These are:

    • Rs 2,000 per farmer to 9 crore farmers under the PM-KISAN scheme.
    • An additional Rs 1,000 per month pension for the next 3 months for those receiving old age, widow or disability pensions.
    • Rs 500 per month will be transferred for the next 3 months to women holding a Jan Dhan bank account. This is expected to help 20 crore women.
    • Over 8 crore women who are registered beneficiaries under Ujjwala Yojana will get one LPG cylinder per month for the next three months. While this is not exactly a cash transfer, these cylinders will be free of cost.
    • Women SHGs across the country — roughly around 63 lakh of them — can now take collateral-free loans up to Rs 20 lakh instead of the existing limit of Rs 10 lakh. This too, is not a cash transfer, rather an enabling provision for receiving higher credit.
    • Wages paid for manual labour under MGNREGA have been increased from Rs 180 per day to Rs 202 per day. According to the FM, this move will help 5 crore households (since only one person per household can avail of employment under MGNREGA) and enable them to earn Rs 2,000 as additional income. However, the work needs to be done in a manner that ensures social distancing.

    (B) For the organised sector

    This help essentially relates to the Employees’ Provident Fund. There are two initiatives announced by the government — one in which the government actually pays on behalf of the poor and the other in which it enables the poor to withdraw their own money from their EPF accounts.

    1) EPF contributions

    • Under the first provision, the GoI will pay the EPF contributions — 12% of the basic salary — of both the employees and the employers for the next three months.
    • However, this move applies only to about 4 lakh firms where the total number of employees is less than 100, and where 90 per cent of the employees earn less than Rs 15,000 per month.
    • The move is aimed at reducing the monetary strain on small firms in the organised sector that may feel compelled to fire employees given the mounting financial strain.

    2) EPF withdrawals

    • The government has amended the Employees Provident Fund Organisation (EPFO) regulations to enable workers to withdraw a non-refundable advance from their EPF accounts.
    • This amount is, however, limited to 75 per cent of the total money in one’s EPF account, or one’s salary for three months, whichever is lower.
    • So, if one earns Rs 20,000 per month, and has Rs 1 lakh in one’s EPF account, then one can only withdraw Rs 60,000 from it (not Rs 75,000).
    • This move is expected to help close to 4.8 crore workers registered with the EPFO.

    (C) For construction workers

    • The construction sector traditionally employs a large number of people, especially those who leave villages and farming out of distress, and come to cities looking for work.
    • However, construction activities have been severely hit over the past few years, given the sharp slowdown in the Indian economy as well as the mess in India’s real estate sector.
    • The complete shutdown of economic activity as a result of the lockdown has essentially rendered all labourers jobless overnight.
    • To alleviate the economic distress of construction workers, the government has asked state governments to use the money — roughly Rs 31,000 crore — already available in welfare fund for construction workers.

    How far are these measures effective?

    • The announcements related to the provisioning of food grains via PDS will be especially helpful. However, a few points need to be flagged.
    • One, some of the measures would have happened on their own. For instance, MGNREGA wage increases typically happen in April. Similarly, the first instalment of Rs 2,000 under PM KISAN would have been due in April.
    • Two, some of so-called cash transfer amounts are too small (like Rs 500 per month for women Jan Dhan account holders); some others are not really there (like the doubling of loans for women SHGs).

    Question of implementation

    • For instance, at present many construction workers and labourers are struggling to reach their homes.
    • To receive help, they will need to have been registered in a particular state, but there is nothing to assume that they are in the state in which they are registered.
    • Similarly, it is an open question of how manual labour under MGNREGA can happen while maintaining social distancing.
    • If a lot of people join in, there would be a concern of disease transmission — and if very few join in (fearing the disease) then the hoped-for benefit may not actually accrue.

    The cry is yet unaddressed

    • The main problem for poor and vulnerable households today is liquidity stress.
    • Unlike big businessmen or the salaried middle class, these are people with no balance sheets, reserves, or bank balances.
    • Every day’s loss of work for them means cutting down even basic consumption and going deeper into debt. Free grain can help, but does not address the real crisis, which is of liquidity.
    • They need cash to buy essential things other than just food — and most of them had it till the other day.

    Not a hour to criticize

    • Migrant workers are of two kinds: permanent and seasonal. March, in particular, sees large number of seasonal migrants because it is harvesting time, and not much labour is required now.
    • Seasonal migrants keep moving continuously, from one place to another, in search of work. This has only exacerbated the problem.
    • Had a support programme for all unorganised sector workers preceded the lockdown, it could have just been possible for the government to make them stay back at urban centres, instead of exposing them to the risk of catching the disease and further infecting their families back home.

    Financial impact of the move

    • The package will cost the national exchequer Rs 1.7 lakh crore, which is 0.8 per cent of India’s estimated gross domestic product in the current financial year.
    • The package is still no way comparable to the $2.2 trillion economic package
    • However, not all this money is in addition to what was announced in the Union Budget; some of the announcements refer to expenditure which would have happened under normal circumstances as well.

     

    Continued…………..

  • Ayyappa and the Court

    Context

    In the several cases with potential significance, there was no effective hearing at the interim stages which created fait accompli. And which results in the status quo cementing itself.

    The Sabarimala case and ‘balance of convenience’ principle

    • Review petition pending: Millions of disciples have protested the Court’s 2018 verdict where gender equality was held to trump the tenets of the faith and rejoiced at the November 2019 order of the Chief Justice’s bench granting their cause a fresh lease of life.
    • As things stand, their review petitions are kept pending until the questions of law are determined.
    • Please to enter the temple declined: In December 2019, fervent pleas on behalf of certain women devotees to enter the temple were declined, although the 2018 verdict continued to hold the field.
    • Why declining the plea for entry matters? This was justified by the Court on a “balance of convenience”, thereby laying down a new principle for not directing the implementation of its own judgement.

    Pendency of Article 370 challenge case hearing

    • Nine judge bench: This year it was decided to put together the nine-judge bench to hear the cases on an urgent basis.
    • Kashmir case on the backburner: But with two judges from the ongoing Kashmir/Article 370 challenges also a part of the Sabarimala case, it would mean that the Kashmir issues would be put on the back burner in the middle of its hearing.
    • This is despite the advocates representing the right of women’s entry stating that they had no objection to the Kashmir cases being heard first.
    • Then, barely a day into the hearing, a strain of swine flu reached some of the members of the Bench, leading to a postponement of hearings till the middle of March.
    • Now, with a fierce pandemic enveloping the globe, the case is adjourned indefinitely.

    Criticism of administrative functioning of the SC

    • Over the last few months, the Supreme Court has been besieged by criticism of its administrative functioning.
    • Delay in the hearing of important cases: Cases that have customarily been heard with alacrity, like those concerning personal liberty, law and order and criminal investigation, have been posted after long intervals with the Government being granted the luxury of time to respond.
    • No effective hearing in cases with immediacy: Where immediacy is pre-eminent so that fait accompli may not be created, as with the validity of the Kashmir notifications, the CAA and the electoral bonds, there have been no effective hearings at the interim stage.
    • Thus, the status quo slowly cements itself.

    Reason for problems in administrative functions of the SC

    • Dual role played by the CJI: Since the early years of the judiciary, one person has been given the onerous dual charge of heading both the administrative and judicial functions of the court.
    • As a result, apart from sitting every day, reading briefs, hearing arguments and delivering detailed judgements, the Chief Justice has to also act as the final authority for all service-related matters of the Court’s 2,500 employees, issue office orders to streamline the registry.
    • The CJI also supervise measures for security and infrastructure, chair committees, correspond with and entertain judicial delegations, attend symposia, delegate subject matters among colleagues, constitute benches of varying strengths and interview candidates for the various courts.
    • In the old days, when the burden of cases was modest, these tasks would not have been challenging.
    • But in the present time, not only are they overwhelming, but they also bring in their wake a host of attacks on the person who occupies that high office.

    Need for the Chief Executive Officer in the SC

    • Administrative functioning of the SC: In all the administrative tasks, the Chief Justice is assisted by a team of registrars, who are headed by the secretary-general.
    • As they are junior judicial officers, they neither have the training nor the complete independence to take steps towards course correction.
    • The requirement of CEO: This is why the Supreme Court sorely requires a chief executive officer – an independent professional who is equipped with the day-to-day management of the Court and is not beholden to the judges in any way.
    • How it will help? The CEO will be charged with the entire mission of running the Court so that the judges can concentrate on what they are trained and experienced to do – adjudicate.
    • Operational autonomy: The CEO will, of course, have to be given adequate operational autonomy and be answerable to a committee of the Court, comprising judges and bar representatives, thereby providing for a professional process, much like in the corporate sphere.
    • With this, the judges will at least be spared the charges that they have had to withstand over the last few years.

    Conclusion

    It is only for politicians to concern themselves with public opinion, not for judges. They are weaponised by the Constitution to serve the cause of justice, and in this, as per Article 144, all civil and judicial authorities are enjoined to cooperate. Just a few blows of the gavel to any misadventures would be sufficient to send the message loud and clear: That the Court offers no sanctuary to the executive knaves.

  • After the lockdown

    Context

    Lockdown announcement has not been matched by national strategy — on containing fallout for poor.

    Two arguments advanced against lockdown

    • India’s decision to lock down was necessary. Two arguments are being advanced against it.
    • The first argument: India is a poor economy, with millions at the margins of subsistence, who cannot bear the consequences of a lockdown. The density and living conditions in India make social distancing difficult in many cases.
    • The second argument: It is that the extent of community transmission does not justify such drastic measures.

    What are the justifications for the lockdown?

    • The only hope: Precisely because millions in India are vulnerable and will not later have the possibilities of quarantining or medical care, the only hope we have of securing their lives is to slow down the spread of the virus as much as possible.
    • And the only shot you have at it is when community transmission is possibly still at manageable levels.
    • There is, therefore, a bit of bad faith in using the poor as the basis for expressing scepticism at the need for a lockdown. That is the most insidious form of privilege.
    • The risks of any catastrophic spread will be even more incalculable for the poor.

    Underscoring the importance of federalism and decentralisation

    • States responding in innovative ways: One of the more encouraging things has been the way in which several state governments like Punjab, Odisha, Kerala, Delhi and others have come into their own, innovating under difficult circumstances.
    • Role of panchayat and local officials: The much-neglected panchayat and local officials are key nodes in keeping track of possible cases and the creation of quarantining infrastructure.
    • Role of frontline workers: It would also be churlish not to acknowledge the ways in which most of the frontline workers of the state are responding, learning and innovating in this situation.
    • Federalism and decentralisation: If anything, this crisis is bringing home the importance of both federalism and decentralisation as central to a resilient governance architecture.

    The preparation and follow-up of the lockdown

    • But the national preparation and follow-up to take full advantage of the lockdown do not inspire full confidence.
    • Lack of strategy: The announcement of the lockdown has not been matched by a commensurate national strategy.
    • This is manifest, in the early signals on the following two important aspects:
    • Containing the economic fallout for the poor.
    • Building up the health infrastructure.
    • It is, admittedly, early days; but the signs are not good.

    Economic fallout for the poor

    • Focus is not on the poor: In the entire framing of the problem, the poor have been at best an afterthought, at worst expendable damage.
    • Steps taken not adequate: Steps like health insurance cover for frontline workers, increased food rations, are welcome steps. But a crisis of this magnitude required assurance to the most vulnerable that no stops will be pulled to secure their futures.
    • Instead, what you got was incrementalism of the worst kind, masquerading as a big commitment.
    • Low cash transfer: The cash transfers, in particular, through different schemes, are shockingly low.
    • Need for the unprecedented social security support: This crisis is one of the rare instances where economists and even bankers, from across the political spectrum, have rallied around the intellectual argument for unprecedented levels of social security support.
    • So the government’s “support by stealth” strategy is even more mystifying.
    • Impact of lockdown on migrant labour: The magnitude of the crisis unleashed for migrant labour could have been avoided with a little forethought.
    • What could have been done? Early announcement of cash transfers, shelter and food availability, would have obviated the need for migration.

    Opacity on the health infrastructure side

    • Issue of testing: Opacity is often a consequence of scarcity. And nowhere is this more manifest than in our discussion of testing.
    • Underutilisation of capacity: Everyone understands that India has the scarce testing capacity, though it seems it is also under-utilising what it has.
    • No clear testing strategy: The government is procuring more testing kits. But what is worrying is that there seems to be no publicly articulated statement of what exactly our testing strategy is, given the scarce resources.
    • But there is still no sense of how we plan to put a testing strategy in place (not just numbers of tests, but where can they be optimally deployed), that will minimise the need for future lockdowns.
    • What objectives is it trying to meet? There is more than a whiff of suspicion that there is a view that more testing might spread more panic.
    • Or it might put more pressure on the health care system than it can handle.
    • India has never understood that health expenditure is not an expenditure; it is an investment.
    • Building up of health infrastructure: The success of the lockdown strategy is premised on an unprecedentedly vigorous building up of health infrastructure to fight the pandemic.
    • There is a commitment by the Centre to infuse an extra Rs 15,000 crore in this sector. Some steps are being taken in building up capabilities, including ramping up production of ventilators and masks.
    • Need for warlike mobilisation: This is an area where India needs almost a warlike mobilisation, to make sure we have enough testing, tracking, frontline workers, logistics and equipment in place to make sure that the duration of a lockdown is minimised or a repeat is not necessary.
    • The creation of this kind of infrastructure will pay huge dividends even in non-pandemic times.

    Conclusion

    The prime minister is constantly asking the citizens to mobilise, and most of them respond. But it about time the state mobilises: On an economic stimulus that is truly meaningful and health infrastructure push that inspires confidence.

  • Prime Minister’s National Relief Fund (PMNRF)

    Keeping in view the novel coronavirus crisis across the country, various govt. employees, celebrities and political dignitaries are open-heartedly contributing to the PM’s National Relief Fund (PMNRF) to help combat the disease.

    PM’s National Relief Fund (PMNRF)

    • In pursuance of an appeal by the then PM, Pt. Nehru in January, 1948, the Prime Minister’s National Relief Fund (PMNRF) was established with public contributions.
    • It was aimed to assist displaced persons from Pakistan.
    • The resources of the PMNRF are now utilized primarily to render immediate relief to families of those killed in natural calamities like floods, cyclones and earthquakes, etc. and to the victims of the major accidents and riots.
    • Assistance from PMNRF is also rendered, to partially defray the expenses for medical treatment like heart surgeries, kidney transplantation, cancer treatment and acid attack etc.
    • The fund consists entirely of public contributions and does not get any budgetary support.

    Legal status

    • PMNRF has not been constituted by the Parliament.
    • The fund is recognized as a Trust under the Income Tax Act and the same is managed by PM or multiple delegates for national causes.

    Donations

    • PMNRF accepts only voluntary donations by individuals and institutions.
    • Contributions flowing out of budgetary sources of Government or from the balance sheets of the public sector undertakings are not accepted.
    • Conditional contributions, where the donor specifically mentions that the amount is meant for a particular purpose, are not accepted in the Fund.

    Its operation

    • PMNRF operates from the Prime Minister’s Office and does not pay any license fee.
    • PM is the Chairman of PMNRF and is assisted by Officers/ Staff on an honorary basis. Permanent Account Number of PMNRF is AACTP4637Q.

    Tax exemptions

    • PMNRF is exempt under the Income Tax Act, 1961 under Section 10 and 139 for return purposes.
    • Contributions towards PMNRF are notified for 100% deduction from taxable income under section 80(G) of the Income Tax Act, 1961.

  • Ahead: bumper crop, multiple challenges

    This is perhaps the first time ever that India is facing a national disaster or a war-like situation amidst plentiful supplies of food even as a bumper Rabi crop beckons.

    Bumper yield in crisis

    • Farmers are currently about to harvest —if they haven’t already.
    • Given the surplus and extended monsoon rains, which helped recharge ground water and fill up reservoirs, superabundant produce is round the corner.
    • This comes even as there is demand destruction from the shutting down of HORECA (hotels, restaurants and catering) and other institutional segment businesses following the nationwide lockdown.
    • It raises the possibility of a crisis similar to the one three years ago that followed demonetization. But the scale, it is feared, could be bigger.
    • The post-demonetization rabi crop, also a bumper one, was at least harvested and marketed even if it didn’t fetch a good price.

    The real challenge

    • The food and civil supplies departments in states will ultimately ensure that the terminal markets in these centres major cities receive their required daily flow of produce anyhow.
    • The problem will be in the remote towns and the rural hinterlands that are serviced through upcountry APMCs.
    • The grocers there are at the greatest risk of running out of stocks if the lockdown continues without inter-state movement restrictions in agricultural commodities being removed.

    How to transport produce

    • This time, there are doubts being raised even on that.
    • The simple reason for it is: Will farmers, labourers and machines (combines, threshers and tractor trolleys) be able to move freely to harvest the produce and take it to the mandis?
    • The UP government has issued a direction to all district administrations and law-enforcement authorities to exempt all services, including labour, that are involved in agricultural production, processing and marketing from the current lockdown provisions.
    • Other states, too, may follow. But the question remains of the directives being implemented on the ground.

    Will there be workers?

    • At the second stage comes the mandis, where marketing of the crop would happen.
    • Here again, there is a possibility of shortage of labour (the people who do unloading, cleaning, bagging and reloading of the grain that is auctioned or sold) and even gunny bags.
    • Further, it would be necessary to prevent crowding, and maintain social distancing.

    Possible alternatives

    • One way out could be to allow entry only to a limited number of farmers, who may be issued SMS alerts informing them about the date and time to bring their crop.
    • Each farmer can also be given a maximum quantity — say, one tractor-trolley load of 30-40 quintals — that may be brought in a single day.
    • The permission for the next trolley load will be only after other farmers have got their turn to sell.
    • All this will obviously delay the process of marketing, raising the prospect of panic sales.
    • This could be avoided if the government were to give a clear-cut assurance — at least in respect of crop where there is MSP-based procurement — that it will continue buying till the last grain is offered.

    Safer places than APMC

    • Besides, the marketing of produce needn’t be limited to the APMC (agricultural produce market committee) mandi yard.
    • Any flour or dal mill, and even primary school premises can be designated as an APMC marketing area.
    • The objective should be to ensure that the farmer’s produce gets marketed without resulting in overcrowding.

    Way forward

    • The risk of shortages today is really not in the metros or state capitals.
    • Once marketing is done, the crop has to move beyond the mandi.
    • This is probably the right time to dismantle all inter-state and intra-state movement restrictions in farm produce.
    • Free movement is necessary for the context of both a bumper crop and the ongoing lockdown.

  • Schedule H1 drugs

    Hydroxychloroquine is now a schedule H1 drug and can be sold on prescription only.

    What are Schedule H1 drugs?

    • The sale of the Hydroxychloroquine drug from now on should be in accordance with the conditions for sale of drugs specified in Schedule H1 to the Drugs and Cosmetics Rules, 1945.
    • In exercise of the powers conferred by Section 26B of the Drugs and Cosmetics Act, 1940 (23 of 1940), the Central Government can direct that sale by retail of any drug.

    Why such move?

    • The Central Government is satisfied that the drug ‘Hydroxychloroquine’ is essential to meet the requirements of emergency arising due to pandemic COVID-19.
    • And in the public interest, it is necessary to regulate and restrict the sale and distribution of the drug ‘Hydroxychloroquine’ and preparation based thereon for preventing their misuse.

    Hydroxychloroquine

    • Hydroxychloroquine is used to prevent or treat malaria infections caused by mosquito bites.
    • It does not work against certain types of malaria (chloroquine-resistant).

    Pls take a note-

    • Hydroxychloroquine and a related drug, chloroquine, are currently under study as possible treatments for COVID-19.
    • These drugs have not yet been approved for this use.
    • Do not use these medications to treat COVID-19 unless your doctor recommends that you do so.

  • Indian Scientists’ Response to CoViD-19 (ISRC) Group

    Several Indian scientists have come together to form a Google group to address some of the concerns that the COVID-19 outbreak has thrown up.

    Indian Scientists’ Response to CoViD-19 (ISRC)

    • It is a voluntary group of scientists who regularly discuss the rapidly evolving situation with its dire need for science communication.
    • With nearly 200 members, the group has scientists from institutions such as the NCBS, the IISc, the TIFR, the IITs, the IISERs and many others.
    • The group aims to study existing and available data to bring out analyses that will support the Central, State and local governments in carrying out their tasks.

    Self-assigned tasks

    • Several working groups have been formed by scientists.
    • They include one on hoax busting to address disinformation spreading with respect to the coronavirus and one on science popularization to develop material that explains concepts such as home quarantine.
    • Other groups work on resources in Indian languages, mathematical models and apps.

    Why such a group?

    • The scientific community has realized their social and democratic responsibility in the current situation, both in terms of analysing the situation and reaching out to the public.

  • [Prelims Spotlight] Constitutional and Quasi-judicial bodies.

     

    Prelims Spotlight is a part of “Nikaalo Prelims 2020” module. This open crash course for Prelims 2020 has a private telegram group where PDFs and DDS (Daily Doubt Sessions) are being held. Please click here to register.

    28 March 2020

    Constitutional bodies

    Appointment Tenure Removal Process of removal Eligibility for reappointment w/i govt
    Attorney general (Advocate general) President (governor) Pleasure of President (governor) President (governor) No reason needs to be mentioned Yes
    Election Commission (SEC) President (governor) 6 years/ 65 President CEC and SEC by a special majority

    Other ECs on the recommendation of CEC

    		 Yes
    Finance commission (SFC) President (governor) Specified by president NA NA Yes
    UPSC (SPSC) President (governor) 6 years/ 65 President After enquiry by supreme court Members can become Chair, state members can become chair or member or chair of UPSC
    CAG President 6 years/ 65 President Special majority No

     

    Statutory bodies

    Appointment Committee members Other members Tenure Removal
    NHRC (SHRC) President (Governor) 6 (PM + LOP Lok Sabha) Speaker, Deputy CP RS, LOP RS, home minister 3 years*/ 70 President after Supreme Court inquiry
    CIC (SIC) President (Governor) 3 ((PM + LOP Lok Sabha) Cabinet Minister nominated by PM As prescribed by the Central Govt*./ 65 President (governor for SIC) after supreme court inquiry
    CVC President (governor) 3 ((PM + LOP lok sabha) Home minister 4 years/ 65 President after Supreme court inquiry
    Lokpal President 5 (PM + LOP lok sabha Speaker, CJI, eminent jurist 5 years/ 70 Like a Supreme Court judge

    *  After amendments in the respective acts in 2019.

    In the news: 

    1. Amendment to the RTI Act (July 2019)

    • Section 13 of the original Act sets the term of the central Chief Information Commissioner and Information Commissioners at five years (or until the age of 65, whichever is earlier). The amendment proposes that the appointment will be “for such term as may be prescribed by the Central Government”.
    • The amendment proposes that the salaries, allowances and other terms of service of the Chief Information Commissioner and the Information Commissioners “shall be such as may be prescribed by the Central Government” which was earlier at par with Chief Election Commissioner.

    2. Amendment to Protection of Human Rights Act (July 2019)

    • It reduced the term of the Chairperson and Members of the Commission and the State Commissions from five to three years and shall be eligible for re-appointment.
    • Provision was added which says a person who has been a Judge of the Supreme Court is also eligible to be appointed as Chairperson of the Commission in addition to the person who has been the Chief Justice of India.
    • The amendment made provision that a person who has been a Judge of a High Court is also made eligible to be appointed as Chairperson of the State Commission in addition to the person who has been the Chief Justice of the High Court.
    • It conferred upon State Commissions, the functions relating to human rights being discharged by the Union territories, other than the Union territory of Delhi, which will be dealt with by the Commission.

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