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Subject: Polity

  • Temple entry for women : Gender Equality v/s Religious Freedom

  • In-depth understanding of the Directive Principles of State Policy

    Directive Principles of State Policy:

    The Constitution of India aims to establish not only political democracy but also socio-economic justice to the people to establish a welfare state. With this purpose in mind, our Constitution lays down desirable principle and guidelines in Part IV known as the Directive Principle of State Policy.

    Directive Principles of State Policy (DPSP) are in the form of instructions/guidelines to the governments at the centre as well as states. Though these principles are non-justiciable, they are fundamental in the governance of the country. The idea of Directive Principles of State Policy has been taken from the Irish Republic. They were incorporated in our Constitution in order to provide economic justice and to avoid concentration of wealth in the hands of a few people. Therefore, no government can afford to ignore them. They are in fact, the directives to the future governments to incorporate them in the decisions and policies to be formulated by them.

    #Features

    1. Resemble the ‘Instrument of Instructions’ enumerated in the Government of India Act,   1935.
    2. Aim at realising the high ideals of justice, liberty, equality and fraternity as outlined in Preamble to the Constitution.
    3. Embody the concept of a ‘welfare state’.
    4. Seek to establish economic and social democracy.
    5. Are non-justiciable.
    6. Fundamental in the governance of the country.
    7. Help the courts in examining and determining the constitutional validity of a law.

    #Classification

    The Constitution does not contain any classification of the Directive Principles. However, on the basis of their content and direction, they can be classified broadly into socialist, Gandhian and liberal-intellectual.

    #Socialistic Principles:

    1. to promote the welfare of the people by securing a social order permeated by social, economic and political justice and to minimise inequalities in income, status, facilities and opportunities. (Art 38)
    2. to secure (a) the right to adequate means of livelihood for all citizens; (b) the equitable distribution of material resources of the community for common good; (c) prevention of concentration of wealth and means of production; (d) equal pay for equal work for men and women; (e) preservation of the health and strength of workers and children against forcible abuse; and (f) opportunities for healthy development of children. (Art 39)
    3. to promote equal justice and to provide free legal aid to the poor. (Art 39A)
    4. to secure the right to work, to education and to public assistance in cases of unemployment, old age, sickness and disablement. (Art 41)
    5. to make provision for just and humane conditions for work and maternity relief. (Art 42)
    6. to secure a living wage, a decent standard of life and social and cultural opportunities for all workers (Art 43)
    7. to take steps to secure the participation of workers in the management of industries (Art 43A)
    8. to raise the level of nutrition and the standard of living of people and to improve public health. (Art 47)

    #The Gandhian Principles:

    Based on Gandhian ideology, these include

    1. to organize village Panchayats and endow them with necessary powers and authority to enable them to function as units of self government. (Art 40)
    2. to promote cottage industries on an individual or co-operation basis in rural areas. (Art 43)
    3. to promote voluntary formation, autonomous functioning, democratic control, and professional management of co-operative societies. (Art 43B)
    4. to promote the educational and economic interests of SCs, STs and other weaker sections of the society and to protect them from social injustice and exploitation. (Art 46)
    5. to prohibit the consumption of intoxicating drinks and drugs which are injurious to health. (Art 47)
    1. to prohibit slaughter of cows, calves and other milch and drought cattle and to improve their breeds. (Art 48)

    # Liberal-Intellectual Principles:

    These principles represent the ideology of liberalism and direct the state to

    1. to secure for all citizens a uniform civil code. (Art 44)
    2. to provide early childhood care and education for all children until they complete the age of 6 years. (Art 45)
    3. to organise agricultural and animal husbandry on modern and scientific lines. (Art 48)
    4. to protect and improve the environment and to safeguard forests and wildlife. (Art 48A)
    5. to protect monuments, places and objects of artistic or historic interest which are declared to be of national importance. (Art 49)
    6. to separate the judiciary from the executive in the public services of the state. (Art 50)
    7. to promote international peace and security and maintain just and honourable relations between nations; to foster respect for international law and treaty obligations, and to encourage settlement of international disputes by arbitration. (Art 51)

    # Added by 42nd Amendment Act, 1976:

    1. to secure opportunities for healthy development of children. (Art 39)
    2. to promote equal justice and to provide free legal aid to the poor. (Art 39A)
    3. to take steps to secure the participation of workers in the management of industries (Art 43A)
    4. to protect and improve the environment and to safeguard forests and wildlife. (Art 48A)

    # Added by 44th Amendment Act, 1978:

    1. to minimise inequalities in income, status, facilities and opportunities. (Art 38)

    # Added by 97th Amendment Act, 2011:

    1. to promote voluntary formation, autonomous functioning, democratic control, and professional management of co-operative societies. (Art 43B)

    86th Amendment Act, 2002 changed the subject matter of Art 45 and made elementary education a fundamental right under Art 21A. The amended directive requires the state to provide early childhood care and education for all children until they complete the age of 6 years.

     

    #Previous Year MCQs:

    #1. The ideal of ‘Welfare State’ in the Indian Constitution is enshrined in its (2015)

    (a) Preamble

    (b) Directive Principles of State Policy

    (c) Fundamental Rights

    (d) Seventh Schedule

    #2. Consider the following statements regarding the Directive Principles of State Policy : (2015)

    1. The Principles spell out the socio-economic dmocracy in the country.
    2. The provisions contained in these Principles are not enforceable by any court.

    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

    #3. In the Constitution of India, promotion of international peace and security is included in the  (2014)

    (a) Preamble to the Constitution

    (b) Directive Principles of State Policy

    (c) Fundamental Duties

    (d) Ninth Schedule

     

    #4. According to the Constitution of India, which of the following are fundamental for the governance of the country? (2013)

    (a) Fundamental Rights

    (b) Fundamental Duties

    (c) Directive Principles of State Policy

    (d) Fundamental Rights and Fundamental Duties

    #5. ‘Economic Justice’ as one of the objectives of the Indian Constitution has been provided in (2013)

    (a) the Preamble and the Fundamental Rights

    (b) the Preamble and the Directive Principles of State Policy

    (c) the Fundamental Rights and the Directive Principles of State Policy

    (d) None of the above

    #6. Consider the following provisions under the Directive Principles of State Policy as enshrined in the Constitution of India : (2012)

    1. Securing for citizens of India a uniform civil code
    2. Organizin village Panchayats
    3. Promoting cottage industries in rural areas
    4. Securing for all the workers reasonable leisure and cultural opportunities

    #7. Which of the above are Gandhian Principles that are reflected in the Directive Principles of  State Policy ? (2012)

    (a) 1, 2 and 4 only

    (b) 2 and 3 only

    (c) 1, 3 and 4 only

    (d) 1, 2, 3 and 4

  • Uniform Civil Code: Triple Talaq debate, Polygamy issue, etc.

     

    What is the idea behind a Uniform Civil Code for India?

    Currently, believers of various religions can marry, adopt, inherit property and divorce under their own customs.

    Under a Uniform Civil Code, it is believed, personal laws and sanctioned practices of different religions will be largely harmonised with accepted fair practices for all citizens, under guidelines laid down by Constitution.

    Does the Constitution mention a Uniform Civil Code?

    Article 44 of the Constitution, which is one of the Directive Principles of State Policy, says: “The State shall endeavour to secure for the citizens a uniform civil code throughout the territory of India.”

    Directive Principles are not justiciable or mandatory, only a guideline.

     

    Then, what is the debate about?

    Articles 29 and 30 guarantee minorities the right to conserve their culture and script, and run their own educational institutions.

    It was understood that minorities could practise their religion and follow their customs and traditions.

    The Supreme Court asked the central government, whether it was willing to bring a Uniform Civil Code to ride over inconsistent personal laws in different religions.

    There was “total confusion” over the incoherent stipulations about marriage, divorce, adoption, maintenance and inheritance.

    Currently, different laws regulate these aspects for adherents of different religions.

    Is the debate over Uniform Civil Code just a Hindu-Muslim issue?

    Far from it. Parsis, Jains, Sikhs, Christians, apart from of course Hindus and Muslims, have their own civil codes.

    While the Muslim Personal Law is yet to be codified (because of deep divisions within), Christian and Parsi codes were specified before Independence.

    The personal laws of Hindus, Jains, Sikhs and others were codified in the 1950s.

    So, What does our secular Constitution say?

    Article 25, which guarantees the freedom to practise, profess and propagate any religion. By the 42nd Amendment of 1976, India was declared a secular nation.

    The understanding of Article 25, the State and its institutions have not interfered with religious practices, including in relation to various personal laws.

    There is a view that this principle runs contradictory to the idea of secularism which requires the State to be inert to religious considerations, and not tacitly support them by following a practice of non-interference, no matter what.

    Clause (2) of Article 25 empowers the State to frame any law to regulate or restrict “secular activity which may be associated with religious practice”, therefore, it is argued, Article 25 is no bar to having a Uniform Civil Code.

    The inconsistency in personal laws has been challenged on the touchstone of Article 14, which ensures the right to equality.

    Historical Judgements

    Litigants have contended that their right to equality is endangered by personal laws that put them at a disadvantage.

    The first prominent case founded on Article 14 was Shah Bano case (1985) in which the apex court ruled that a Muslim woman was entitled to alimony under the general provisions of the CrPC, like anybody else.

    Following protests from Muslim leaders, Rajiv Gandhi’s government in 1986 got the Muslim Women (Protection of Rights on Divorce) Act passed in Parliament, which nullified the ruling.

    In effect, the verdict did a balancing act between the Shah Bano judgment and the 1986 law.

    In Githa Hariharan vs RBI (1999), the top court adjudicated upon the constitutional validity of certain provisions of the Hindu Minority and Guardianship Act, 1956 and the Guardian Constitution and Wards Act, on a petition claiming they violated Articles 14 by treating the father as the natural guardian of a child under all circumstances.

    It ushered in the principle of equality in matters of guardianship for Hindus, making the child’s welfare the prime consideration.

    That’s some history! what is today’s scenario ?

    The BJP, kept the Uniform Civil Code in its 2014 election manifesto. The BJP and RSS have long demanded it, and cited the example of Goa, which has a common law called the Goa Civil Code.

    What the government tells the court next month will be a test of its political will , and mark the next chapter in the evolution of this debate.

    So, do we really want a Uniform Civil Code? Is there a way forward ?

    Yes, you say? Well, there seems only one way to see through this crazy fog.
    Every aspect of the personal laws must be examined in the light of constitutional guarantees to every Indian, equality, justice, right to life.

    Laws that fail to uphold these basics must be thrown away, Isn’t it ?

    Published with inputs from Arun

  • Judicial Pendency

    Overcoming the backlog of cases: Judicial reform

    A British citizen, Will Pike was paralysed during the 2008 Taj Hotel blasts in 2008. Suing the hotel group for compensation, he wanted the trial to take place in London rather than in India. Accepting his contention, the London court allowed the matter, specifically stating that the trial in India could take some ‘twenty years’. This is a befitting example of the pendency in Indian judicial system and how it needs to be urgently addressed.

    THE MAGNITUDE OF THE PROBLEM

    The graphic below states the number of cases pending before the Courts in India. Currently, about 3.25 crore cases are pending in the Indian courts and Judges fear that this number might escalate to about 4 crore cases by the end of 2016. This problem gets escalated due to the crunch of Judges at all levels of Judiciary as seen in the graphic below.

     

    Timely justice is an integral part of access of justice and this huge backlog of cases amounts to denial and derailment of justice. This article will look into the proposed reforms for addressing this systemic problem.

    10 REFORMS FOR ADDRESSING JUDICIAL PENDENCY

    The 245th Law Commission Report on “Arrears and Backlogs: Creating Additional Judicial (W)omanpower has recommended the following measures

    1. Calculating Adequate Judge Strength through a more scientific analysis of data – In this context, the Commission has negated a simplistic method like Judge-Population ratio (Number of judges required per million people) in favour of a Rate of Disposal Method.

    In the Rate of Disposal Method, one looks at the current rate at which judges dispose of cases. Then, given that the institutions and disposal rate remain the same, the Courts would need how many more additional judges to keep pace with the new filings in Court so that the newly instituted cases do not add to the existing backlog.

    2. Judges to be appointed on a Priority basis: India currently has 1/5th of the number of judges it needs and thus, the Judges need to be appointed on a priority basis.

    3. Increasing the age of retirement for Subordinate Court Judges to 62 years.

    4. Creation of Special Courts for traffic/police challan cases: They constitute about 37.4% of the existing pendency before the subordinate courts.

    5. Provision for staff and infrastructure

    6. Periodic Needs Assessment by High Courts: Monitoring the rate of institution and disposal of cases and revising the adequate strength of Judges since a High Court is equipped with all the information relating to the subordinate courts in the State. The Malimath Committee had recommended setting up of Vigilance Cells in each district by the High Court to monitor the performance of subordinate judicial officers.

    7. Uniform data collection and data management methods : to bring in greater transparency.

    8. Need for a system-wide reform: The Commission has recommended the following:
    ● Greater encouragement to Alternative Dispute Resolution (ADR) and Lok Adalats <Can you tell us the difference among various types of ADRs, mediation, arbitration and conciliation? Answer in comments>
    ● Setting up non-mandatory time frames and performance benchmarks for resolution of different types of cases based on rational criteria.

    OTHER RECOMMENDATIONS

    9. Use of Technology : Has been recommended by the 230th Law Commission Report and the Malimath Committee Report to
    (a) Club cases filed on similar points of law, which can be decided on the basis of a single judgment.
    (b) Track old cases, which have become infructuous and dispose them off quickly
    (c) Setting up E-Courts and ushering in E-filing. Has received a major boost under the e-Courts Integrated Mission Mode Project.

    10. Creation of All-India Judicial Service: Provided for under Article 312 of the Indian Constitution. The idea has been mooted by various bodies including the First Judicial Pay Commission and accepted by the Supreme Court. Art 2012 proposal regarding creation of this service has not received responses from all States and this proposal continues to be hanging in the air <can you tell us the procedure of creation of new all India service? Answer in comments>.

    CONCLUSION:

    Many steps are currently being taken by the Government and the Courts to address this problem.

    • Monthly National Lok Adalats are carried out for expeditious disposal of claims.
    • In March 2016, the Monthly Lok Adalat disposed of about 1.5 lakh cases and settled claims worth Rs. 100 crores <Where can one appeal against the decision of Lok Adalats. Also tell us about the jurisdiction of Lok Adalats. Answer in comments>
    • In criminal cases, the setting-up of fast-track Courts and “plea bargaining” have further expedited matters <Can you tell us what’s plea bargaining? Answer in comments>
    • The e-courts project, aimed at providing better Court management and a database of all pending cases with easier filing of important documents is underway.
    • Moreover, the National Litigation Policy 2015 is awaiting ministerial approval and seeks to reverse the trend of Government being the biggest litigant <did you know one of the argument for rejecting NJAC was that govt was the biggest litigant, therefore can have no role in appointment of judges>.

    However, in view of the burgeoning backlog and urgency of reducing backlog, the efforts need to be severely expedited.

    P.S. This article is published with inputs from a CD user  Joyousjojo (name changed on request).

    P.P.S. If you want to write explainers for CD, mail us your explainer at hello@civilsadily.com

  • Alternative Dispute Resolution Mechanism – NCA, Lok Adalats, etc.

    Do we really need a National Court of Appeal?

    The Supreme Court recently admitted an SLP (Special Leave Petition) under Article 136 of the Constitution on the setting up of a National Court of Appeal (NCA) with regional benches which will act as final courts of appeal in civil, criminal, revenue and labour matters <Can you tell us, what is SLP in comments>.

    In 1987, in the case of Bihar Legal Support Society v. the Chief Justice of India, the proposal to set up the National Court of Appeal was mooted and welcome by the then Chief Justice P N Bhagwati. The current petition by Chennai based lawyer has once, again brought the issue to the fore.

    The Supreme Court will set up a Constitution Bench to decide on the proposed NCA as primarily, it raises the following question related to the interpretation of the Constitution Answer in comments>.

    As of now, the Supreme Court is the final court of appeal in all cases. With the NCA, the role of the Apex Court would be restricted to hearing only constitutional and public law cases. Would this amount to tinkering with the ‘basic structure’ of the Constitution?

    REASONS WHY NCA COULD BE A WELCOME PROPOSITION?

    Given the never-ending and ever –increasing case-load on the Apex Court, the NCA could be a welcome change on the following grounds:
    (a) Clearing the massive backlog: With the huge pendency of cases in all three levels of Judiciary, the National Court of Appeal with its regional benches may prove to be crucial in clearing the massive backlog of cases. About 98% of the Apex Court’s time is wasted on routine matters like bail pleas, dishonor of cheques, traffic violations, correcting errors in HC judgments.

    With the NCA hearing matters pertaining to civil, criminal, labour and revenue laws, Supreme Court would be able to concentrate on the more important public law concerns.

    (b) Restoring the Apex position of the Apex Court: With the Supreme Court getting an opportunity to hear exclusively on constitutional and public law matters, its position as the final arbiter on constitutional cases and on developing the law will be further strengthened.

    This is in tune with the scenario in England, UK and Wales where the Supreme Court only rules on matters of constitutional importance or sets a new legal precedent.

    (c) Greater access to justice: Access to justice is a fundamental right for all under the Indian Constitution. In the Indian scenario, this is proportionate to the distance from Supreme Court. As per a recent survey, majority of cases come from northern states like 14% from Delhi High Court in comparison to southern states like only 2.5% of cases from Kerala High Court and even fewer from North-eastern States. Setting up NCA with regional benches will help in reducing travelling expenses, with a better cost-benefit ratio.

    WHY SHOULD THE STATUS QUO BE MAINTAINED?

    The Centre has been challenging the move to set up the NCA on the following grounds:

    (a) Dilution of the powers of Apex Court: Currently, many citizens resort to Article 136 of the Constitution in any sort of matter. With the subject matter of disputes being divided amongst NCA and the Supreme Court, Supreme Court’s exclusive power to entertain appeals under Article 136 will be significantly diluted.

    (b) Compromise the unified structure of the Judiciary: Currently, there is one Apex Court with the High Court in states followed by subordinate courts. This integrated structure will suffer a backseat with NCA somewhere in the middle between High Courts and Supreme Court Answer in comments>.

    Moreover, earlier proposals to set up Regional Benches of the Supreme Court with one bench in each region have been rejected by the Supreme Court on the ground that it will affect the unitary character of the Judiciary and that there can be only one Supreme Court.

    For providing greater access to citizens from far-flung areas, it has been proposed that there could be dedicated courtrooms with video conferencing facilities for litigants and lawyers from far-flung areas. This will avoid the need of setting up regional benches and even NCA to a great extent.

    (c) Large-scale Constitutional amendments required: For bringing the NCA into existence, several provisions of the Constitution related to independence of Judiciary, hierarchy of Courts, powers of Supreme Court etc. will have to be amended. Moreover, Article 136 of the Constitution is a part of the basic structure and in view of the decision in Keshvananda Bharati case, limiting the powers of Supreme Court through NCA will be extremely difficult.

    The solution does not lie with creating courts of appeal because it would not bring down litigation. The Supreme Court has to exercise restraint on the manner of interference under its constitutional power. Today people take chances and come to Supreme Court on every issue, including challenging an adjournment order – Attorney General

    Law Commission Recommendation 

    • Law Commission in its 229th report submitted to the government in 2009 recommended setting up of four regional benches at Delhi, Chennai/Hyderabad, Kolkata and Mumbai to deal with appeals arising out of high courts. Earlier 125th report had recommended setting up of NCA Answer in comments>.
    • It said, if necessary Article 130 may be amended to implement its suggestion that Cassation Benches may be set up in four regions, while the Constitution Bench sits in Delhi . < Is Law commission a constitutional or statutory or executive body? Answer in comments>

    But the Supreme Court rejected it in 2010, saying dividing the Supreme Court would affect the country’s unitary character. A Full Court comprising all SC judges reiterated its earlier resolutions passed in 1999, 2001, 2004 and 2006 in this regard.

    CONCLUSION: The burgeoning backlog of cases plaguing all the three levels of judiciary demand more resources and institutional reforms to deal with the problem. However, any proposals to set up institutions like the NCA will require Constitutional amendments and major Legislative will to go through. This at present is not forthcoming. The idea of a National Court of Appeal requires consideration, but in a manner that would not undermine the undoubted authority of the Supreme Court of India. The next hearing for the matter is slated up for April 4.

    P.S. This article is published with inputs from a CD user  Joyousjojo (name changed on request).

    P.P.S. If you want to write explainers for CD, mail us your explainer at hello@civilsadily.com

  • Amended Technology Upgradation Fund Scheme

    • The Cabinet Committee on Economic Affairs (CCEA) has approved introduction of Amended Technology Upgradation Fund Scheme (ATUFS) for technology upgradation of the textiles industry <Who chairs CCEA? Who are its members? What are its functions? Answer in comments>
    • The ATUFS replaces existing Revised Restructured Technology Upgradation Fund Scheme (RR-TUFS) to give a boost to textile sector under Make in India campaign

     

    ATUFS targets:

    • Employment generation (including women) and global export by encouraging garment and apparel industry <very labour intensive sector>
    • Promote Technical Textiles which is a sunrise sector for export and employment creation <can you tell us about technical textiles in comments>
    • Improvement in quality and productivity by promoting conversion of existing looms to better technology looms
    • Encourage better quality in textile processing industry and keep check on import of fabrics by the garment sector

    Two broad categories of ATUFS:

    1. Apparel, Garment and Technical Textiles sectors would be provided on capital investment with fifteen per cent subsidy. However, it will be subject to a ceiling of Rs. 30 crore for entrepreneurs over a period of five years
    2. Remaining sub-sectors of textile sectors would be provided subsidy at a rate of 10 percent. However, it would be subject to a ceiling of Rs.20 crore

    Advantages:

    • 12,671 crore is for committed liabilities under the ongoing RR-TUFS scheme and Rs. 5,151 crore is for new cases under ATUFS
    • The amended scheme would give a boost to ‘Make in India’ in the textiles sector
    • It is expected to attract investment to the tune of one lakh crore rupees, and create over 30 lakh jobs
    • All cases pending with the Office of Textile Commissioner which are complete in all respects, shall be provided assistance under the ongoing scheme and the new scheme will be given prospective effect
    • Office of Textile Commissioner (TXC) is being reorganised & its offices shall be set up in each state
    • Officers of the TXC shall be closely associated with entrepreneurs for setting up the industry, including processing proposals under the new scheme, verifying assets created jointly with the bankers and maintaining close liaison with the State Government agencies

    About TUFS:

    • TUFS was introduced by the Union Government in 1999
    • Aim was to facilitate new technology for making the Indian textile industry globally competitive and to reduce the capital cost for the textile industry
    • The scheme was earlier amended for continuation during the 12th Five Year Plan into Revised Restructured Technology Upgradation Fund Scheme
    Published with inputs from Swapnil

  • Rashtriya Gokul Mission

    Potential to enhance the productivity of the indigenous breeds of India through professional farm management and superior nutrition is immense. For this it is essential to promote conservation and development of indigenous breeds.

    The “Rashtriya Gokul Mission” aims to conserve and develop indigenous breeds in a focused and scientific manner
    It is a focussed project under National Programme for Bovine Breeding and Dairy Development, with an outlay of Rs 500 crore during the 12th Five Year Plan

     

    Importance & need for conservation of indigenous breeds:

    • During 2012-2013, about 45 million cattle were ‘in milk’ and contributed around 59 million tonnes of milk
    • Cattle not only contribute substantially to milk production but are also used as draught animals, for agricultural operations and transport in rural areas
    • Most of the agricultural operations by small farmers are performed by bullocks
    • They also provide cow dung (organic manure), cow urine (medicinal value)
      Indigenous cattle are categorized as Zebu and are suited for draught power because of the presence of a hump
    • Indigenous cattle are well known for their quality of heat tolerance and ability to withstand extreme climatic conditions
    • Studies indicate that temperature rise due to global warming will negatively impact milk production
    • The annual loss in milk production of cattle and buffaloes due to thermal stress in 2020 will be about 3.2 million tonnes of milk costing more than Rs 5000 Crore at current price rate
    • The decline in milk production and reproductive efficiency will be highest in crossbred cattle followed by buffaloes. Indigenous Breeds will be least affected by climate change as they are more hardy and robust
    • Some of the indigenous breeds have enormous potential to become high yielding commercial milch animals under optimal farm management
    • The pre-requisites for the development of a breed are- a) the presence of a minimum base population and b) a wide selection differential for economic traits
    • The indigenous dairy breeds with potential for development as commercially viable milch cattle in a shorter time frame are- Sahiwal in Punjab; Rathi and Tharparkar in Rajasthan; and Gir and Kankrej in Gujarat
    • If these breeds are selectively crossed with bulls selected through sibling and progeny testing, the offsprings would be commercially viable. In this manner the entire population of the breed can be upgraded in a few generations

    Objectives:

    • To undertake breed improvement program for indigenous cattle breeds so as to improve genetic makeup and increase the stock
    • To enhance milk production and productivity of indigenous bovines
    • To upgrade nondescript cattle using elite indigenous breeds like Gir, Sahiwal, Rathi, Tharparkar, Red Sindhi <What is a non-descript cattle? Answer in comments>
    • To distribute disease free high genetic merit bulls of indigenous breeds for natural service

    Implementation:

    • State Implementing Agency (SIA)- Livestock Development Boards (LDB)
      State Gauseva Ayogs- Mandated to sponsor proposals to the SIAs and monitor implementation of the sponsored proposal
    • Participating Agencies- All Agencies having a role in indigenous cattle development. Ex- ICAR, universities, Colleges, NGOs and Gaushalas with best germplasm

    Components:

    • Establishment of village level Integrated Indigenous Cattle Centres viz Gokul Gram
    • Strengthening of bull mother farms to conserve high genetic merit Indigenous Breeds
    • Establishment of Field Performance Recording (FPR) in the breeding tract.
      Assistance to Institutions/lnstitutes which are repositories of best germplasm
    • Implementation of Pedigree Selection Programme for the Indigenous Breeds with large population
    • Establishing Gopalan Sangh- Breeder’s Societies
    • Distribution of disease free high genetic merit bulls for natural service.
      Incentive to farmers maintaining elite animals of indigenous breeds
    • Heifer rearing programme
    • Award to Farmers (Gopal Ratna) and Breeders” Societies (Kamadhenu)
      Organization of Milk Yield Competitions for indigenous breeds
    • Organization of Training Programme for technical and non technical

    Gokul Gram:

    • These are Indigenous Cattle Centres and will act as Centres for development of Indigenous Breeds
    • They’ll be established- a) in native breeding tracts and b) near metropolitan cities for housing the urban cattle
    • A dependable source for supply of high genetic breeding stock to the farmers in the breeding tract
    • Self sustaining and will generate economic resources from sale of milk, organic manure, vermi-composting, urine distillates, and production of electricity from bio gas for in house consumption and sale of animal products
    • Also function as state of the art in situ training centre for Farmers, Breeders
    Published with inputs from Swapnil

  • Akhilesh Ranjan Committee on Taxation of E-Commerce

    • A Committee on Taxation of e-commerce constituted by the Central Board of Direct Taxes (CBDT) to examine the business models for e-commerce submitted its report on 21 March 2016
    • The Report of the Committee was received by the Government of India and taken into consideration in the preparation of Finance Bill, 2016
    • The Report provides the view of the Committee on issues related to taxation of e-commerce and recent international developments in this area
    • The Committee included officers of the CBDT, representatives from the industry, the Institute of Chartered Accountants of India and tax experts
    • The 8 member committee was headed by Akhilesh Ranjan, Joint Secretary (FT&TR-I), C8DT, Department of Revenue, Ministry of Finance

     

    Recommendations:

    • Equalization Levy may be imposed on payments to non-residents for specified services by a separate chapter in the Finance Act, 2016
    • The Equalization Levy should be chargeable on any sum that is received by a non resident from a resident in India or a permanent establishment in India as a consideration for the specified digital services
    • The rate of Equalization Levy may be between 6 to 8 % of the gross sum received
    • Equalization Levy should not be charged unless the consideration received for specified services in a year from a person in India is more than one lakh rupees
    • Equalization Levy should also not be charged on payments received by a permanent establishment of a non-resident in India, which are attributable to that permanent establishment and taxable under Income-tax Act, 1961
    • Every person that has received any sum chargeable to Equalization levy, would be required to pay the Equalization Levy chargeable on that sum to the union government
    • Every person that has received any sum chargeable to Equalization levy, would be required to file a return of Sum chargeable to Equalization Levy as prescribed, if such total sum received by that person in a year exceeds ten crore rupees
    • Any income arising from a transaction on which Equalization Levy has been paid should be exempted from income-tax, by necessary amendment in Section 10 of the Income-tax Act, 1961
    • The definition of business connection in section 9 of the Income-tax Act, 1961 may be expanded to include the concept of significant economic presence
    • Work on exploring the possibility of deduction of Equalization Levy by the payment gateways should be initiated immediately
    • The implementation and impact of Equalization Levy may be monitored on a regular basis

    What is Equalisation Levy?

    • To avoid some of the difficulties arising from creating new profit attribution rules for purposes of a nexus based on significant economic presence, an equalisation levy could be considered as an alternative way to address the broader direct tax challenges of the digital economy
    • This approach has been used by some countries in order to ensure equal treatment of foreign and domestic suppliers
    • An equalisation levy could be structured in a variety of ways depending on its ultimate policy objective
    • In general, an equalisation levy would be intended to serve as a way to tax a non-resident enterprise’s significant economic presence in a country
    • In order to provide clarity, certainty and equity to all stakeholders, and to avoid undue burden on small and medium-sized businesses, the equalisation levy would be applied only in cases where it is determined that a non-resident enterprise has a significant economic presence
    Follow the story for updates- e-Commerce: The New Boom

     

  • Deen Dayal Upadhyaya Gram Jyoti Yojana (DDUGJY)

     

    • Aim: To ensure electrification of all the un-electrified villages by 2017 in mission mode Answer in comments.>
    • The Scheme draws its inspiration from the similar pioneering scheme implemented by the Government of Gujarat
    • It will enable to initiate much awaited reforms in the rural areas
    • It focuses on feeder separation (rural households & agricultural) and strengthening of sub-transmission & distribution infrastructure including metering at all levels in rural areas Answer in comments.>
    • The scheme will replace the existing Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY)
    • Scheme has an outlay of Rs 76000 Cr for implementation

    Why DDUGJY?

    • The rural agricultural and non-agricultural consumers of the country are generally serviced through the local distribution network which is unreliable
    • Many rural areas of the country face insufficient electricity supply, consequently the distribution utilities are forced to resort to load shedding
    • This affects the power supply to both agricultural and non-agricultural consumers
    • The demand of power in rural areas is increasing day by day due to changing consumer base, improving living standards for which augmentation of rural infrastructure needs to be regularly undertaken
    • To improve the commercial viability of power distribution, there is need for metering of all categories of the consumers

    Objectives:

    • To provide electrification to all villages
    • Feeder separation to ensure sufficient power to farmers and regular supply to other consumers
    • Improvement of Sub-transmission and distribution network to improve the quality and reliability of the supply
    • Metering to reduce the losses

    Benefits:

    • All villages and households shall be electrified
    • Increase in agriculture yield
    • Business of Small and household enterprises shall grow resulting into new avenues for employment
    • Improvement in Health, Education, Banking (ATM) services
    • Improvement in accessibility to radio, telephone, television, internet and mobile etc
    • Betterment in social security due to availability of electricity
    • Accessibility of electricity to schools, panchayats, hospitals and police stations etc
    • Rural areas shall get increased opportunities for comprehensive development
    • Key enabler in Digital India programme

    Progress:

    • Govt has achieved its annual target of electrifying 7000 villages during this (2015-16) fiscal year under DDUGJY (according to recently published data) Answer in comments>
    • However, these figures have been contested and critcised for being unrealistic
    • An analysis by The Hindu- The govt has electrified 20% of the villages that were without power at the start of this financial year (2015-16)

    Follow the story for updates- Policy Wise: India’s Power Sector

    Published with inputs from Swapnil

  • From Jan Dhan to Jan Suraksha: A Journey towards Financial Inclusion and Security

     

    The budget 2015-16 had announced 3 Social Security Schemes:
    #1. Pradhan Mantri Suraksha BimaYojna (PMSBY)
    #2. Pradhan MantriJeevan Jyoti Bima Yojana (PMJJBY)
    #3. Atal Pension Yojana (APY)

    Why the schemes?

    • India faces the biggest challenge of providing banking facilities and insurance coverage to all
    • Having access to institutional finance has so far remained a far cry to a vast chunk of rural population
    • As of May 2015, only 20% of India’s population has any kind of insurance and only 11% has any kind of pension scheme
    • Insurance is a way of managing risks & give necessary protections in case of financial loss
    • When one has an insurance policy, certain rights and protections are derived out of it to the person and his family
    • There is a dire need for providing social security at a very nominal cost to the millions and economic empowerment of the poor <what is social security? Why is it lacking in our country? Answer in comments.>
    • PMJDY is a major step to bring people across the country closer to institutionalized finance, and save them from the clutches of informal financiers
    • However, most of the PMJDY accounts had zero balance initially. The government aims to reduce the number of such zero balance accounts by using these schemes <what is the proportion of zero balance account now? Answer in comments.>

    PMSBY & PMJJBY:

     

     

    • Implementation: The scheme will be offered by all Public Sector General Insurance Companies and all other insurers who are willing to join the scheme and tie-up with banks for this purpose
    • Govt Contribution: Various Ministries can co-contribute premium for various categories of their beneficiaries from their budget or from Public Welfare Fund created in this budget from unclaimed money
    • Auto-debit: The premium amount will be auto debited from subscriber’s bank account
    • The schemes will be linked to the bank accounts opened under the Pradhan Mantri Jan Dhan Yojana scheme

    Criticisms of PMSBY:

    • Private banks have complained that the Govt should focus on upper middle class instead of the poorer section
    • Western scholars have argued that financial inclusion is a myth and serving such large number of people would only increase the burden and work-load of public sector

    Criticisms of PMJJBY:

    • The banks have complained that revenue received will be very low
    • Some bankers have claimed that amount they are receiving is not sufficient to cover the service costs
    • Insurers have also pointed out that no health certificate or information of pre-existing disease is required for joining

    Atal Pension Yojana

    • It focuses on the unorganized sector where nearly 400 million employees representing more than 80% of all employees are engaged <what is unorganized sector? differentiate b/w informal and unorganized? Answer in comments.>
    • The aim is to make sure that needy people could get fixed amount when they get old
    • It is the improved version of Swavalamban scheme, launched in 2010-11, which has been found lacking in clarity with regard to pension benefits at the age after 60

    Features:

    • All citizen of India aged between 18-40 years are eligible
    • A guaranteed minimum monthly pension will be provided to the subscribers varying from Rs. 1000 to Rs. 5000 per month
    • The pension amount depends on contribution by subscriber
    • Government of India will guarantee the minimum benefit of pension
    • Most interesting part of the scheme is that the government will contribute 50% of the contribution made by the subscriber or Rs. 1000 whichever is lower
    • However, contribution by the govt is available for only those who are not income tax payers and are not covered by any Statutory Social Security Schemes
    • Bank account holder of Any Bank account is eligible

    Suraksha Bandhan drive- Spreading the social security message

    • Aim: To take forward the Govt’s objective of creating a universal social security system in the country, targeted especially at the poor and the under-privileged
    • Participating Banks supported by the participating Insurance Companies are carrying out local outreach, awareness building and enrolment facilitation under the drive
    • Public service organizations supported by peoples representatives are participating in these efforts through various outreach activities such as enrolment drives, camps etc. in large numbers during this period
    Published with inputs from Swapnil