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Why in News

Recently, the Union and State governments agreed to implement the direct benefit transfer (DBT) scheme in the power sector for better targeting of electricity subsidies.

Key features

1. Under the scheme, electricity will be provided to consumers at market rates and those eligible get the subsidy amount directly in their bank accounts.
2. The cash payment under DBT will be equivalent to the level of payment announced by the state government for per unit of electricity consumption.
3. The state would decide the subsidy based on average consumption data of a particular set of consumers.
4. It is to be first launched under a pilot project and the full launch by 2019 when state discoms cleared their losses and started generating profit under UDAY.
5. To make discoms more responsive, any disruption in electricity will be penalized after March 2019.
6. For achieving efficiency and reduce losses, 100% metering will be done and there will be no human interface in consumer sides such as metering, billing, and collections.

Need for DBT in the power sector

1. India’s electricity distribution sector has been facing huge loss over the years even after the launch of UDAY (Ujwal Discom Assurance Yojana).
2. Currently, discoms provide subsidy by the cross-subsidization method. Cross-subsidization is done by subsidizing the electricity tariff of households while keeping the tariff for commercial and industrial consumers high.
3. People who are capable of paying the tariff benefits from cross-subsidization, but people who can’t pay (small business) are affected due to high electricity costs. Hence, DBT would solve the problem by direct targeting.
4. India’s per capita power consumption is around 1200 kilowatt-hour (kWh) which is among the lowest in the world. The government has the vision to provide 24×7 power to all by 2019. So power leakage and inefficient distribution shall be minimized with DBT and provide power to all households particularly those who lack.
5. In 2016, NITI Aayog recommended launching DBT in power distribution.

Benefits

1. DBT in power sector will result in better targeting of subsidies without any leakages and delays.
2. It will result in savings to the government exchequer.
3. The tariff rationalization under the proposed reforms would help discoms escape from losses and recover input costs.
4. It would result in the development of small industries who were earlier affected by cross-subsidization.

Challenges

1. Unless metering is done at the lowest levels (backward and rural areas), the power sector will not survive.
2. DBT is done through Aadhaar. However, the biometric authentication of poor people has not complete.
3. There is also the need to remove the ghost beneficiaries.

Way forward

DBT in the power sector is a welcome move which would help India achieve 24×7 power for all target. However, the implementation should also be effective in ensuring the success of this scheme with proper monitoring, prompt payments, grievance redressal mechanisms for non-payments or delayed payments, removing ghost beneficiaries etc.

Practice questions

Do you think that the Direct Benefit Transfer (DBT) in the power sector would help the government in achieving the 24×7 power for all target? Critically examine.

Why in News

1. Supreme Court of India in Subramanian Swamy case upheld the validity of the criminal defamation law.
2. The court pronounced its verdict on a batch of petitions challenging the constitutional validity of sections 499 and 500 of the Indian Penal Code providing for criminal defamation.

What is Defamation?

1. Defamation refers to the act of publication of defamatory content that lowers the reputation of an individual or an entity when observed through the perspective of an ordinary man. Defamation in India is both a civil and a criminal offence.

The Law which deals with Defamation

• Sections 499 and 500

Sections 499 and 500 in the IPC deal with criminal defamation. While the former defines the offence of defamation, the latter defines the punishment for it.

Section 499

Whoever, by words either spoken or intended to be read, or by signs or by visible representations, makes or publishes any imputation concerning any person intending to harm, or knowing or having reason to believe that such imputation will harm, the reputation of such person, is said, except in the cases hereinafter expected, to defame that person.

Section 500

Whoever defames another shall be punished with simple imprisonment for a term which may extend to two years, or with fine, or with both.

Supreme Court on Defamation

1. Court rules that defamation laws are not in conflict with the right to free speech.
2. Court stated that notwithstanding the expansive and sweeping ambit of freedom of speech, as all rights, right to freedom of speech and expression is not absolute. It is subject to imposition of reasonable restrictions

Why should it be retained?

1.  The reputation of an individual, constituent in Article 21 is an equally important right as free speech
2. It has interpreted art 21 to provide for the right to reputation and brought a new concept of constitutional fraternity – that is, an assurance of mutual respect and concern for each other’s dignity.
3. The Supreme Court declared that the right to free speech under Article 19(1)(a) had to be “balanced” against the right to “reputation” under Article 21.
4. It has been part of the statutory law for over 70 years. It has neither diluted our vibrant democracy nor abridged free speech
5. Protection for “legitimate criticism” on a question of public interest is available in the Civil law of defamation & Under exceptions of Section 499 IPC
6. Mere misuse or abuse of law can never be a reason to render a provision unconstitutional rather lower judiciary must be sensitized to prevent misuse
7. Monetary compensation in civil defamation is not proportional to the excessive harm done to the reputation
8. Editors have to take the responsibility of everything they publish as it has far-reaching consequences in an individual and country’s life
9. Since there is no mechanism to censor the Internet from within, online defamation could only be adequately countered by retaining defamation as a criminal offence.
10. Also, criminalisation of defamation is part of the state’s “compelling interest” to protect the right to dignity and good reputation of its citizens.
11. Unlike in the U. S, defamation in India cannot be treated only as the civil liability as there is always a possibility of the defamer being judgment-free, i.e., not having the adequate financial capability to compensate the victim.

Why should it not be retained?

1. These restrictions have a chilling effect on freedom of speech; they create an anomaly whereby the threshold for criminal prosecution for defamation is now possibly lower than the threshold for civil damages;
2. “Constitutional fraternity” is not a part of Article 19(2) of the Constitution, which specifically limits the circumstances under which the state can restrict speech to eight enumerated categories.
3. It is also nowhere in the fundamental rights chapter of the Constitution, so the question of “balancing” free speech against constitutional fraternity does not arise.
4. Article 21 which is a shield to protect the individual against State persecution or indifference, is used as a sword to cut down on the fundamental right to freedom of speech and expression because of this provision.
5. Freedom of speech and expression of media is important for a vibrant democracy and the threat of prosecution alone is enough to suppress the truth. Many times the influential people misuse this provision to suppress any voices against them.
6. Considering anecdotal evidence, every dissent may be taken as unpalatable criticism. Sections 499 and 500 of IPC prescribe two years’ imprisonment for a person found guilty of defamation.
7. The right to reputation cannot be extended to collectives such as the government, which has the resources to set right damage to their reputations.
8. The process in the criminal cases itself becomes a punishment for the accused as it requires him to be personally present along with a lawyer on each date of hearing.
9. Given that a civil remedy to defamation already exists, no purpose is served by retaining the criminal remedy except to coerce, harass and threaten.
10. It goes against the global trend of decriminalizing defamation

• Many countries, including neighbouring Sri Lanka, have decriminalized defamation.
• The United Kingdom abolished criminal defamation altogether
• More recently, the Constitutional Court of Zimbabwe struck it down as an unconstitutional restriction upon the freedom of speech.
• In 2011, the Human Rights Committee of the International Covenant on Civil and Political Rights called upon states to abolish criminal defamation, noting that it intimidates citizens and makes them shy away from exposing wrongdoing

11 Investigative journalism can be curtailed and the ombudsman would be threatened.

• The dozens of defamation cases filed in Tamil Nadu to silence journalists show that criminal defamation can fetter democratic accountability.

Way forward

Criminal defamation should not be allowed to be an instrument in the hands of the state, especially when the Code of Criminal Procedure gives public servants an unfair advantage by allowing the state’s prosecutors to stand in for them when they claim to have been defamed by the media or political opponents.

In recognition of the fact that many countries do have criminal defamation laws which are unlikely to be repealed in the very near future, following interim measures can be taken:

1. No-one should be convicted for criminal defamation unless the party claiming to be defamed proves, beyond a reasonable doubt, the presence of all the elements of the offence, as set out below;
2. The offence of criminal defamation shall not be made out unless it has been proven that the impugned statements are false, that they were made with actual knowledge of falsity, or recklessness as to whether or not they were false, and that they were made with a specific intent to cause harm to the party claiming to be defamed;
3. Public authorities, including police and public prosecutors, should take no part in the initiation or prosecution of criminal defamation cases, regardless of the status of the party claiming to have been defamed, even if he or she is a senior public official;
4. Prison sentences, suspended prison sentences, suspension of the right to express oneself through any particular form of media, or to practise journalism or any other profession, excessive fines and other harsh criminal penalties should never be available as a sanction for breach of defamation laws, no matter how egregious or blatant the defamatory statement.

Conclusion

1. While the right to reputation may be protected by the Constitution, it should not be at the cost of freedom of speech.
2. Free speech is necessary because it enables the media to hold governments and individuals accountable. Freedom of speech should also protect the right to offend within reasonable limits.
3. If the ability to legitimately criticize is not protected, voices throwing light on important issues will continue to be silenced by the rich and powerful

Background

1. Africa is a continent with various opportunities such as natural resources, demography and socio-economic development which attracts global attraction and competition.
2. According to IMF, 11 of the world’s fastest-growing economies are in Africa, with many of the nations recording high growth rates.
3. Various countries including India and China have been investing in Africa to tap such potential. This led to widespread investment and development which made the African leaders welcoming the competition.
4. Competition between India and China is for new markets, agricultural land and access to natural resources.

China’s strategy in Africa

1. China with its economic might has invested heavily in various infrastructural projects in Africa and became a strong player in Africa.
2. China started its economic liberalization way before India and with huge manufacturing base made deep inroads into Africa and devised effective strategy to exploit the natural resources in Africa. This created a strong lobby for China in Africa.
3. Since independence, India followed the non-interventionist approach in Africa. However, China established a military base in Djibouti and acts as a net security provider in the region.
4. The African countries have the huge demand for manufacturing and human resources which China has been effectively utilizing to establish a dominance.
5. China has also been leveraging its permanent member status in UNSC to convince African countries that it will effectively tend to their concerns in the United Nations.

India’s strategy in Africa

1. China has made deep inroads into Africa than any other country. But its dominance is slowly being replaced by India’s growing involvement in the region.
2. India has focussed on showcasing its cultural and historical ties with the region to improve the trade relations with resource-rich countries such as Sudan, Ethiopia, and Zimbabwe.
3. India’s soft power strategy has been successful which is evident in countries like Sudan where Indian companies have attained near complete control of the local oil and natural gas industry.
4. In Zimbabwe also, China’s dominance in the energy and resource sectors is being replaced by both state-owned and private Indian corporations.
5. African nations increasingly prefer India over China because of following reasons

• Chinese companies utilize Chinese workers instead of local people = No employment creation. But India employs local people and provide them with skills.
• Chinese companies don’t care about environmental protection, instead only the profits.

Chinese loans come with the prerequisite that only Chinese technology shall be utilized.

Way forward

1. Although China has a larger presence in African economy than India, there are growing opportunities for India to improve trade relations with Africa such as initiatives like Asia-Africa growth corridor proposed by both India and Japan for improving development and people-people partnership.
2. Africa is key to India’s economic and maritime interests in the Indian Ocean region. The Prime Minister’s emphasis on the “blue economy initiative” which aims to build on maritime trade links between India and the countries situated along the Indian Ocean is significant.
3. Africa’s automotive sector is growing on the back of rapid urbanisation, a growing consumer base with rising disposable income and a huge regional market.
4. It needs investments for creating infrastructure in ports, roads and railways, and training programmes to build a skilled labour force.
5. Therefore, Our expertise and human resources in building roads, airports, ports, railways, economic zones and industrial corridors should be shared.
6. India must not overlook the prospects of commercialisation of Indian innovation and technology in Africa.

• For instance, a unique opportunity lies in Africa’s agriculture sector which suffers from low productivity, limited use of technology, lack of high yielding varieties of crops and good quality seeds.
• This opens a window for Indian entrepreneurs in high social impact sectors including agriculture, information and communication technology, pharmaceuticals, energy and healthcare.

Practice Question

1. “Although China has a huge presence in African economy, India has been slowly making inroads into Africa replacing China”. Comment.