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Subject: Governance

Important aspects of Society

  • ‘Rozgar Setu’ Scheme for skilled workers

    The Madhya Pradesh has announced the launch of the ‘Rozgar Setu’ Scheme to help secure employment for skilled workers who have returned.

    State schemes are quite often seen in the news. They are very important from the prelims perspective:

    Rytha Bandu (Telangana): Cash transfer scheme of Rs 5,000/acre, per season

    KALIA (Krushak Assistance for Livelihood and Income Augmentation) Scheme (Odisha)

    Mukhya Mantri Krishi Aashirwad Yojana (Jharkhand)

    Krishak Bandhu Scheme (West Bengal)

    ‘Rozgar Setu’ Scheme

    • The ‘Rozgar Setu’ scheme to provide work to the maximum number of returned skilled workers.
    • After such workers requiring employment are identified, the government will contact factory and workshop owners and contractors overseeing infrastructure projects such as road and bridge construction.
    • This would fulfil the manpower requirement of industries as well as provide employment to workers during the COVID-19 pandemic.

  • [pib] Instant PAN through Aadhaar based e-KYC

    The Union Finance Ministry has launched the facility for instant allotment of (Permanent Account Number) PAN.

    Try this question from CSP 2018:

    Q.) Consider the following gatemen.

    1. Aadhaar card can be used as a proof of citizenship or domicile.

    2. Once issued, the Aadhaar number cannot be deactivated or omitted by the Issuing Authority.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    Can’t you expect a similar question based on PAN card? If not , go through this newscard.

    What is a Permanent Account Number?

    • A PAN is a ten-character alphanumeric identifier, issued in the form of a laminated “PAN card”, by the Income Tax Department.
    • It is issued to any “person” who applies for it or to whom the department allots the number without an application.
    • A PAN is a unique identifier issued to all judicial entities identifiable under the Indian Income Tax Act, 1961.
    • The income tax PAN and its linked card are issued under Section 139A of the Income Tax Act.
    • It is issued by the Indian Department under the supervision of the Central Board for Direct Taxes (CBDT) and it also serves as an important proof of identification.
    • It is also issued to foreign nationals (such as investors) subject to a valid visa, and hence a PAN card is not acceptable as proof of Indian citizenship.

    Uses of PAN

    • The primary purpose of the PAN is to bring a universal identification to all financial transactions and to prevent tax evasion by keeping track of monetary transactions.
    • The PAN is mandatory when filing income tax returns, tax deduction at source, or any other communication with the IT Department.
    • PAN is also steadily becoming a mandatory document for opening a new bank account, a new landline telephone connection / a mobile phone connection, purchase of foreign currency, bank deposits above ₹50,000, purchase and sale of immovable properties, vehicles etc.

    Why it is in the news?

    • A PAN is necessary for filing income tax returns.
    • This facility is now available for those PAN applicants who possess a valid Aadhaar number and have a mobile number registered with Aadhaar.
    • The allotment process is paperless and an electronic PAN (e-PAN) is issued to the applicants free of cost.

  • What is the doctrine of Force Majeure?

    The recent spread of the Coronavirus has triggered a global slowdown and has rendered ongoing business operations of several organisations to almost a standstill. This has resorted them to invoking the ‘force majeure’ clause to seek some relief.

    Practice question for mains:

    Q) What is the doctrine of Force Majeure and Frustration of a Contract? Discuss how it can worsen the NPA crisis in India.

    What is Force Majeure?

    • Force majeure is purely a contractual remedy available to an affected party under a contract and for seeking relief, the reference would be to the express terms of the contract.
    • It is a contractual provision allocating the risk of loss if performance becomes impossible or impracticable, especially as a result of an event that the parties could not have anticipated or controlled.
    • While force majeure has neither been defined nor specifically dealt with, in Indian statutes, some reference can be found in Section 32 of the Indian Contract Act, 1872 (the “Contract Act”).
    • It envisages that if a contract is contingent on the happening of an event which event becomes impossible, then the contract becomes void.

    Where are such clauses found?

    • Force majeure clauses can usually be found in various contracts such as power purchase agreements, supply contracts, manufacturing contracts, distribution agreements, project finance agreements, agreements between real estate developers and home buyers, etc.

    Circumstances qualified for force majeure

    • A force majeure clause typically spells out specific circumstances or events, which would qualify as force majeure events, conditions which would have be fulfilled for such clause to apply.
    • As such, for a force majeure clause to become applicable the occurrence of such events should be beyond the control of the parties.
    • The parties will be required to demonstrate that they have made attempts to mitigate the impact of such force majeure event.
    • If an event or circumstance qualifies, the consequence would be that parties would be relieved from performing their respective obligations to be undertaken by them under the contract.

    Why it is in news, now?

    • Due to the lockdown restrictions placed by the government, the parties’ ability to perform and fulfil their contractual obligations is affected.
    • Where the contract does not specifically cover the current situation is a matter of debate.
    • The Indian Contract Act, 1872 is more than a century old and does not have any specific provisions relating to suspension of contracts or termination of contracts in cases of a pandemic.
    • The Act clearly provides that an agreement to do an act impossible in itself is void (Section 56).
    • After a contract is made, if any act becomes impossible or unlawful by reason of some event, such a contract becomes void.

    What is the difference between force majeure and frustration of a contract?

    • Under the doctrine of frustration, the impossibility of a party to perform its obligations under a contract is linked to the occurrence of an event/circumstance subsequent to the execution of a contract and which was not contemplated at the time of execution of the contract.
    • However, under in case of a force majeure, parties typically identify, prior to the execution of a contract, an exhaustive list of events, which would attract the applicability of the force majeure clause.
    • The doctrine of Frustration renders the contract void and consequently, all contractual obligations of the parties cease to exist.

    What did the Supreme Court say?

    • Recently, the Supreme Court observed that the doctrine of frustration as enumerated in the Act would apply only where the parties have not specified the consequences of an event which renders the performance of the contract impossible.
    • Termination of a frustrated contract would be possible only in cases where the contract becomes impossible to perform which means the damage to the contract should be of permanent nature and not something which can be performed with the passage of time.
    • Hence a temporary inability or force majeure event would not qualify under the doctrine.

    What lies ahead?

    • The force majeure clause in contracts should not be misconstrued as an event of frustration covered under the Act.
    • Force majeure is purely a contractual remedy available to an affected party under a contract and for seeking relief; the reference would be to the express terms of the contract.
    • However, a party claiming frustration of contract and seeking to escape liability or other obligation under a contract will necessarily have to approach an appropriate judicial forum.
    • It is likely that ‘force majeure’ clauses in contracts need to be more heavily negotiated to include references to epidemics or pandemics, in addition to other situations.

  • Online education must supplement, not replace, physical sites of learning

    Left with no choice, many education institutions turned to online mode. But could that be a new normal? This article analyses the indispensable role of online education. However, online education cannot be a substitute for traditional education institutes. WHY? Read the article to know about the vital role of traditional educational institutions…

    Online education (OE): Supplement not the substitute

    • The incredible synergy unleashed by information and communications technology (ICT) is the best thing to have happened to education since the printing press.
    • Indeed, higher education today is unthinkable without some form of the computer and some mode of digitised data transmission.
    • OE can use content and methods that are hard to include in the normal curriculum.
    • OE can put pressure on lazy or incompetent teachers.
    • OE can provide hands-on experience in many technical fields where simulations are possible.
    • And OE can, of course, be a powerful accessory for affluent students able to afford expensive aids.
    • As products of this revolution, online methods of teaching and learning deserve our highest praise — but only when cast in their proper role.
    • This proper role is to supplement, support and amplify the techniques of face-to-face education.
    • The moment they are proposed as a substitute for the physical sites of learning we have long known — brick-and-cement schools, colleges, and universities — online modes must be resolutely resisted.

    So, what are the vested interests involved?

    • Resistance to OE is often dismissed as the self-serving response of vested interests, notably obstructive, technophobic teachers unwilling to upgrade their skills.
    • But these are not the only vested interests involved.
    • Authoritarian administrators are attracted by the centralised control and scaling-at-will that OE offers.
    • Educational entrepreneurs have been trying to harvest the billions promised by massive open online courses (MOOCs) — think of Udacity, Coursera, or EdX.
    • Pundits are now predicting post-pandemic tie-ups between ICT giants like Google and Amazon and premium education brands like Harvard and Oxford that will launch a new era of vertically-integrated hybrid OE platforms.

    Is OE a viable alternative to traditional educational institutions (TEI) for the typical Indian student?

    • No one with access to an elite TEI chooses OE.
    • Instead, we know that OE always loses in best-to-best comparisons.
    • Favourable impressions about OE are created mostly by comparing the best of OE with average or worse TEIs.

    But is it true that the best OE is better than the average college or university?

    • OE claims that neither the campus nor face-to-face interaction are integral to education.
    • Since the comparative evaluation of virtual versus face-to-face pedagogic interaction needs more space, the campus question is considered here.
    • How does the typical student’s home compare with a typical TEI campus?
    • Census 2011 tells us that 71 per cent of households with three or more members have dwellings with two rooms or less.
    • According to National Sample Survey data for 2017-18, only 42 per cent of urban and 15 per cent of rural households had internet access.
    • Only 34 per cent of urban and 11 per cent of rural persons had used the internet in the past 30 days.
    • It is true that many TEIs (both public and private) have substandard infrastructure.
    • But these data suggest that the majority (roughly two-thirds) of students are likely to be worse off at home compared to any campus.
    • The impact of smartphone capabilities and stability of net connectivity on OE pedagogy also needs to be examined.

    Importance of college as a social space

    • It is as a social rather than physical space that the college or university campus plays a critical role.
    • Public educational institutions play a vital role as exemplary sites of social inclusion and relative equality.
    • In Indian conditions, this role is arguably even more important than the scholastic role.
    • The public educational institution is still the only space where people of all genders, classes, castes, and communities can meet without one group being forced to bow to others.
    • Whatever its impact on academics, this is critical learning for life.
    • Women students, in particular, will be much worse off if confined to their homes by OE.

    Consider the question- “Covid-19 pandemic forced many educational institute to explore the online more of education. And this also brought to the fore the potential of the online mode of education. In light of this, examine the issues with substituting the online mode of education for the traditional educational mode.”

    Conclusion

    Though an indispensable supplement for traditional education, there are certain aspects of education and a social life that online learning cannot substitute. So, the government should not divert its attention from the traditional educational institution and look at online education as its substitute.

  • Aarogya Setu app is now open source

    Amid concerns over privacy of data being collected by its COVID-19 contact tracing app, the union government has open-sourced the Aarogya Setu app.

    Right to Privacy is an important topic for GS. The Aarogya Setu app which has a lot more to offer is under the radar due to the underlying vacuum of Privacy Law in India. To tackle this, the government has launched a bug bounty programme (a sort of hackathon).

    About  AarogyaSetu App

    • The App enables people to assess themselves the risk of their catching the Corona Virus infection.
    • It is designed to keep track of other AarogyaSetu users that a person came in contact with and alert him or her if any of the contacts tests positive for COVID-19.
    • It achieves this using the phone’s Bluetooth and GPS capabilities.
    • Once installed in a smartphone through an easy and user-friendly process, the app detects other devices with AarogyaSetu installed that come in the proximity of that phone.
    • The app can then calculate the risk of infection based on sophisticated parameters if any of these contacts have tested positive.
    • The personal data collected by the App is encrypted using state-of-the-art technology and stays secure on the phone until it is needed for facilitating medical intervention.

    Issues with the app

    • The AarogyaSetu app faces the same issue as every other contact tracing technology that has come up during the pandemic period — it is people dependent.
    • It needs widespread usage and self-reporting to be effective.
    • Given that any number of total users will be a subset of smartphone owners in India, and there are bound to be variations in the levels of self-reporting, the efficacy is not bulletproof.
    • The terms of use of the app also say as much, distancing the government from any failure on the part of the app incorrectly identifying COVID-19 patients.

    1) Privacy concerns

    • First of all, the app exists in the privacy law vacuum that is India.
    • With no legislation that spells out in detail how the online privacy of Indians is to be protected, AarogyaSetu users have little choice but to accept the privacy policy provided by the government.
    • The policy goes into some detail on where and how long the data will be retained, but it leaves the language around who will have access to it vague.
    • As per the policy persons carrying out medical and administrative interventions necessary in relation to COVID-19” will have access to the data.
    • This suggests interdepartmental exchanges of people’s personal information and is more excessive than countries like Singapore and even Israel.

    2) Technical issue

    • Beyond the legal loopholes, there are technical loopholes as well.
    • The unique digital identity in AarogyaSetu is a static number, which increases the probability of identity breaches.
    • The abundance of data collected is also potentially problematic.
    • AarogyaSetu uses both Bluetooth as well as GPS reference points, which could be seen as overkill whereas other apps such as TraceTogether make do with Bluetooth.

    3) Other issues

    • Experts emphasise that automated contact tracing is not a panacea.
    • They caution against an over-reliance on technology where a competent human-in-the-loop system with sufficient capacity exists.

    Back2Basics: What is Open Source?

    • The term open source refers to something people can modify and share because its design is publicly accessible.
    • The term originated in the context of software development to designate a specific approach to creating computer programs.
    • Today, however, “open source” designates a broader set of values—what we call “the open source way.”
    • Open source projects, products, or initiatives embrace and celebrate principles of open exchange, collaborative participation, rapid prototyping, transparency, meritocracy, and community-oriented development.

    The source code

    • “Source code” is the part of the software that most computer users don’t ever see; it’s the code computer programmers can manipulate to change how a piece of software—a “program” or “application”—works.
    • Programmers who have access to a computer program’s source code can improve that program by adding features to it or fixing parts that don’t always work correctly.

    What is Open Source Software?

    • At the simplest level, open-source programming is merely writing code that other people can freely use and modify.
    • Open source is a term that originally referred to open source software (OSS).
    • OSS is a code that is designed to be publicly accessible—anyone can see, modify, and distribute the code as they see fit.
    • An open-source development model is a process used by an open-source community project to develop open-source software.
    • The software is then released under an open-source license, so anyone can view or modify the source code.

  • Examining role played by Civil Society and NGOs in fight against Covid-19

    Social capital is what civil societies are known as. The article highlights the valuable role played by the civil society, and NGO in the pandemic. They constitute the backbone of the collective expression of citizen  interest in a democracy. So, read about the ways in which they can contribute in dealing with destruction due to pandemic.

    Partnership with 3 key stakeholders: NGO, Private Sector, international development organisation

    • The nature and scale of the crisis which the COVID-19 pandemic has led to is unparalleled.
    • In such a scenario, solutions are unlikely to come from past experiences or best practices.
    • The biggest source of strength now is the partnerships we have built over the years.
    • The situation at hand calls for stakeholders to come together, work side by side and support each other.
    •  The fight against COVID-19 needed as many hands as were available.
    • The job was too big for the government to handle alone.
    • The strategy was to leverage vertical and horizontal partnerships: Vertical partnerships, which the stakeholders have built within their organisations and horizontal partnerships, which the government has institutionalised with stakeholders.
    • This is precisely what one of the Empowered Groups created by the government has been doing since it was formed.

    Significance of NGOs

    • The NGOs, given their deep connect with spatial and sectoral issues, were a natural partner in this endeavour.
    • There is nobody better placed than the NGOs to understand the pulse at the grassroots and engage closely with communities.
    • Around 92,000 organisations were urged to partner with district administrations and contribute to the response efforts.

    How the NGOs helped?

    • Chief Secretaries of all states were requested to engage NGOs in relief and response efforts and designate state and district nodal officers to coordinate with them.
    • The approach was to leverage the strength and reach of the local NGOs in identifying priority areas for action and avoid duplicity of efforts.
    • NGOs have been actively setting up community kitchens, creating awareness about prevention, and physical distancing, providing shelter to the homeless, the daily wage workers, supporting government efforts in setting up health camps and in deputing volunteers to deliver services to the elderly, persons with disabilities, children, and others.
    • An outstanding contribution of NGOs was in developing communication strategies in different vernaculars which went a long way in taking awareness measures to the community level.
    • Akshaya Patra, Rama Krishna Mission, Tata Trusts, Piramal Foundation, Bill and Melinda Gates Foundation, Action Aid, International Red Cross Society, Prayas, Help-age India, SEWA, Sulabh International, Charities Aid Foundation of India, Gaudia Math, Bachpan Bachao Andolan, the Salvation Army, and Catholic Bishops’ Conference of India are some partners who have embodied the whole-of-society approach in COVID-19 response management.

    Important role played by startups

    • The crisis has brought out the best in the start-up space.
    • Many of them have risen to the occasion and accelerated the development of low cost, scalable, and quick solutions.
    • The results have been promising.
    • AgVa accelerated the development of ventilators which are low-cost, mobile, low on power consumption and require minimal training for operators.
    • Biodesign has developed a robotic product called ResperAid, which enables mechanised use of manual ventilators.
    • Kaaenaat has developed highly portable ventilators which can be used to serve two patients simultaneously and has a built-in battery, oxygen concentrator, and steriliser cabinet.
    • The products of a few non-ventilator start-ups too came to the aid of the COVID-19 fighting machinery.
    • The AI-enabled analysis of chest X-Rays developed by Qure.ai enables large-scale screening to identify potential cases.
    • GIS and geo-fencing technologies by Dronamaps enabled information cluster strategies for hotspots.
    • AI-powered online doctor consultation and telemedicine platform by Mfine connects diagnostics labs and pharmacies with doctors and patients.
    • The AI-enabled thermal imaging camera developed by Staqu facilitated large-scale screening at low cost.
    • These developments strengthen the argument that low-cost and scalable solutions designed and developed domestically must drive our country’s transformation.

    How the stakeholders operated through partnership?

    • The manner in which stakeholders have responded to the pandemic reinforces the power of partnerships.
    • In fact, they have operated through partnerships.
    • The NGO leaderships created momentum throughout their networks and delivered the much needed response.
    • They also brought to the attention of the group the problems from the grassroots.
    • Multiple agencies of international development organisations designed and executed joint response initiatives, leveraging their presence across the country.
    • The coalitions which industry organisations such as CII, FICCI, and NASSCOM have built over the years brought people and resources together, identified problems at multiple levels, channelised ideas and solutions and facilitated innovations.
    • The role played by the government has been facilitative in nature.
    • This role was based on the institutional and informal partnerships built with the three groups of stakeholders over the years.

    Adaptiveness of Indian Industry

    • Until three months ago, not a single N95 mask or personal protective equipment (PPE) was manufactured in India.
    • Today, we have 104 domestic firms making PPEs and four manufacturing N95 masks.
    • Over 2.6 lakh PPEs and two lakh N95 masks are being manufactured in India, daily.
    • Domestic manufacturing of ventilators has strengthened manifold — orders for more than 59,000 units have been placed with nine manufacturers.
    • While this shows the adaptiveness of Indian industry, the shift to domestic production must happen on a larger scale for a wider set of sectors in the long run, as envisioned by Make in India.

    Consider the question-“As facilitators, mediators, and advocates of collective articulation of citizen interest in a democracy, Civil Society and NGOs have put people before everything else during this crisis. In light of this, examine the role played by them in unparalleled crisis brought in by Covid-19 pandemic.”

    Conclusion

    Civil society, and voluntary and non-government organisations constitute the backbone of the collective articulation of citizen interest in a democracy. Surely, they can prove to be an asset in our fight against corona pandemic.

    Back2Basics: NGO

    • The World Bank defines NGOs as private organizations that pursue activities to relieve suffering, promote the interests of the poor, protect the environment, provide basic social services, or undertake community development.
    • NGOs are legally constituted organizations which operate independently from Government and are generally considered to be nonstate, nonprofit oriented groups who pursue purposes of public interest.

  • [pib] Shahapur’s Katkari Tribe

    The newscard is based on the PIB news which discusses the success story of Katkari Tribe, a PVTG in Maharashtra regarding the implementation of Van Dhan Yojana.

    Try this:

    Consider the following statements about Particularly Vulnerable Tribal Groups (PVTGs) in India:

    1) PVTGs reside in 18 States and one Union Territory.

    2) A stagnant or declining population is one of the criteria for determining PVTG status.

    3) There are 95 PVTGs officially notified in the country so far.

    4) Irular and Konda Reddi tribes are included in the list of PVTGs.

    Which of the statements given above are correct? (CSP 2019)

    (a) 1, 2 and 3

    (b) 2, 3 and 4

    (c) 1, 2 and 4

    (d) 1, 3 and 4

    Katkari Tribe

    • The Katkari is an Scheduled Tribe mostly belonging to the state of Maharashtra.
    • They are bilingual, speaking the Katkari language, a dialect of the Marathi-Konkani languages, with each other; they speak Marathi with the Marathi speakers, who are a majority in the populace where they live.
    • In Maharashtra, the Katkari has been designated a Particularly Vulnerable Tribal Group (PVTG), along with two other groups included in this sub-category: the Madia Gond and the Kolam.
    • In the case of the Katkari this vulnerability derives from their history as a nomadic, forest-dwelling people listed by the British Raj under the Criminal Tribes Act of 1871, a stigma that continues to this day.

    What are PVTGs?

    • There are certain tribal communities who have declining or stagnant population, low level of literacy, pre-agricultural level of technology and are economically backward.
    • They generally inhabit remote localities having poor infrastructure and administrative support.
    • These groups are among the most vulnerable section of our society as they are few in numbers, have not attained any significant level of social and economic development.
    • 75 such groups have been identified and categorized as Particularly Vulnerable Tribal Groups (PVTGs).

    Back2Basics: Pradhan Mantri Van Dhan Yojana (PMVDY)

    • It is a retail marketing-led value addition plan for Minor Forest Produce (MFP), meant for forest-based tribes to optimize the tribal income, locally.
    • Under the program, MFP-based tribal groups/enterprises of around 300 members are formed for collection, value addition, packaging & marketing of Minor Forest Produces (MFPs).
    • These tribal enterprises will be in the form of Van Dhan SHGs which will be a group of 15-20 members and such 15 SHG groups will further be federated into a larger group of Van Dhan Vikas Kendras (VDVKS) of around 300 members.
    • TRIFED will support the VDVKs through providing them with model business plans, processing plans & tentative list of equipment for carrying out the value-added work of MFPs.

    Also read:

    https://www.civilsdaily.com/news/pib-development-of-pvtgs-scheme/

  • [pib] UMANG Mobile App

    To further enhance the initiatives of Digital India Programme, the India Meteorological Department (IMD) services have been brought on the “UMANG App”.

    UPSC may puzzle you by asking a question such as: Which of the following services are included under UMANG App?  It would provide some ambiguous 5-6 options.

    UMANG App

    • The UMANG is an acronym for Unified Mobile Application for New-age Governance.
    • It is an all-in-one single, unified, secure, multi-channel, multi-platform, multi-lingual, multi-service mobile app, powered by a robust back-end platform providing access to high impact services of various organizations.
    • It was in 2017 to bring major government services on a single mobile app, with a larger goal to make the government accessible on the mobile phone of our citizens.
    • About 660 services from 127 departments & 25 states and about 180 utility bill payment services are live and more are in pipeline.
    • UMANG user base has crossed 2.1 Crore including Android, iOS, Web and KaiOS.
    • Citizens can also access their Digilocker from UMANG and give their feedback after availing any service through Rapid Assessment System (RAS) which has been integrated with UMANG.

    Key features

    • Unified Platform: It brings together all government departments and their services on a single platform to provide better and easier services to citizens.
    • Mobile-First Strategy: It aligns all government services with the mobile-first strategy to leverage mobile adoption trends.
    • Integration with Digital India Services: It provides seamless integration with other Digital India Services like Aadhaar, DigiLocker, and PayGov. Any new such service will automatically be integrated with the platform.
    • Uniform Experience: It is designed to enable citizens to discover, download, access, and use all government services easily.
    • Secure and Scalable: It supports Aadhaar-based and other authentication mechanisms for service access. The sensitive profile data is saved in an encrypted format and no one can view this information.

    Benefits for Citizens

    • Single-Point Ubiquitous Access: All government services are available for citizens on a unified platform for easy access through multiple online and offline channels (SMS, email, app, and web).
    • More for Less: Only a single mobile app needs to be installed instead of each app of each department.
    • Convenience: Citizens do not even need to install or update the app again to avail government services if more services are added to the platform.
    • Saving of Time and Money: Citizens can anytime and anywhere avail these services through their mobile phones, desktops, and laptops without any need for visiting the department office and standing in queues.
    • Uniform Experience: All the government services including payment-based transactions provide secure and uniform experience.

  • What are General Financial Rules (GFR)?

    The union government has notified amendments to General Financial Rules (GFR) to ensure that goods and services valued less than Rs 200 crore are being procured from domestic firms, a move which will benefit MSMEs.

    Possible mains question:

    Q. Discuss how the nationwide lockdown to control the coronavirus outbreak has led to the resurfacing of inherent bottlenecks in India’s MSME Sector.

    What are the General Financial Rules (GFRs)?

    • The GFRs are a compilation of rules and orders of the Government of India to be followed by all while dealing with matters involving public finances.
    • They are instructions that pertain to financial matters.
    • They lay down the general rules applicable to Ministries / Departments, and detailed instructions relating to the procurement of goods.
    • They are issued by the procuring departments broadly in conformity with the general rules while maintaining the flexibility to deal with varied situations.

    Also read:

    [Burning Issues] Fiscal Push for MSME Sector of India (Part I)

  • Ensuring MGNREGA lives up to its potential

    With migrant workers returning home, work demand under MGNREGA is bound to rise. Sensing that the government increased the allocation to MGNREGA. This article suggests some steps to make the MGNREGA more effective in catering to this surge in the wake of the pandemic. Some issues that plague the scheme are also examined at the end. So, what are the suggestion? and what are the issues? Read to know….

    Acknowledgement of the importance of MGNREGA

    • The government made an allocation of an additional Rs 40,000 crore as part of the stimulus package.
    • This is an acknowledgement of the importance of MGNREGA.
    • The most important part of MGNREGA’s design is its legally-backed guarantee for any rural adult to get work within 15 days of demanding it.
    • This demand-based trigger enables the self-selection of workers and gives them an assurance of at least 100 days of wage employment.

    Let’s put allocation in context of World Bank recommendations

    • Since 2012, an average of 18 per cent of the annual budgetary allocation for MGNREGA has been spent on clearing pending liabilities from the previous years.
    • Even this financial year began with pending wage and material liabilities of Rs 16,045 crore.
    • An allocation of Rs 1 lakh crore for FY 2020-21 would mean that approximately Rs 84,000 crore is available for employment generation this year.
    • This will still be the highest allocation for MGNREGA in any year since the passage of the law.
    • However, the allocation, which amounts to 0.47 per cent of the GDP continues to be much lower than the World Bank recommendations of 1.7 per cent for the optimal functioning of the programme.

    Some immediate steps to ensure the MGNREGA lives up to its potential

    • First, state governments must ensure that public works are opened in every village.
    • Workers turning up at the worksite should be provided work immediately, without imposing on them the requirement of demanding work in advance.
    • Second, local bodies must proactively reach out to returned and quarantined migrant workers and help those in need to get job cards.
    • Third, at the worksite, adequate facilities such as soap, water, and masks for workers must be provided free of cost. For reasons of health safety, MGNREGA tools should not be shared between workers.
    • The government should provide a tool allowance to all workers — some states are already providing such an allowance.
    • Fourth, procedures for implementing MGNREGA must be simplified but not diluted.
    • The pandemic has demonstrated the importance of decentralised governance.
    • Gram panchayats and elected representatives need to be provided with adequate resources, powers, and responsibilities to sanction works, provide work on demand, and authorise wage payments to ensure there are no delays in payments.
    • Fifth, as per a study by the RBI, more than half the districts in the country are under-banked.
    • The density of bank branches in rural India is even more sparse.
    • At this time, payments need to not only reach bank accounts on time, but cash needs to reach the workers easily and efficiently.
    • The limited coverage of bank infrastructure in rural areas must not be made a hurdle.
    • Attempts to distribute wages in cash, sans biometric authentication, must be rolled out.
    • Sixth, there needs to be flexibility in the kinds of work to be undertaken, while ensuring that the community and the workers are the primary beneficiaries.

    Issuse with MGNREGA

    • Over the last few years, MGNREGA had begun to face an existential crisis.
    • Successive governments capped its financial resources, and turning it into a supply-based programme.
    • Workers had begun to lose interest in working under it because of the inordinate delays in wage payments.
    • With very little autonomy, gram panchayats had begun to find implementation cumbersome.
    • Barring a few exceptions, state governments were only interested in running the programme to the extent funds were made available from the Centre.
    • Allocating work on demand, and not having enough funds to pay wages on time was bound to cause great distress amongst the workers and eventually for the state too.
    • As a result, state governments had begun to implement MGNREGA like a supply-driven scheme, instead of running it like a demand-based guarantee backed by law.

    Consider the question “With migrant workers returning to villages in the wake of corona pandemic, demand for work is likely to increase. In light of this, discuss the utility of MGNREGA and challenges it may face.”

    Conclusion

    With nearly eight crore migrant workers returning to their villages, and with an additional allocation for the year, this could be a moment for the true revival of MGNREGA. A revival led by workers themselves.

    Mahatma Gandhi National Rural Employment Guarantee Act, 2005

    • The Act aims at enhancing the livelihood security of people in rural areas by guaranteeing hundred days of wage employment in a financial year to a rural household whose adult members (at least 18 years of age) volunteer to do unskilled work.
    • The central government bears the full cost of unskilled labour, and 75% of the cost of material (the rest is borne by the states).
    • It is a demand-driven, social security and labour law that aims to enforce the ‘right to work’.
    • Ministry of Rural Development (MRD), Government of India in association with state governments, monitors the implementation of the scheme.