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Subject: Polity

  • Internal Security | National Counter Terrorism Center (NCTC)

    Let’s move to a next topic of Internal security –National Counter Terrorism Center (NCTC).

    Why there was a need of NCTC ?

    • After the 26/11 attacks, Government felt the need to setup a separate body to deal with terrorism.
    • NCTC will derive its powers from the Unlawful Activities Prevention Act(UAPA), 1967.
    • The basic idea is to prevent confusion regarding intelligence inputs and also ensure that none of the police forces from the states enter into a blame game regarding intelligence sharing as one got to see during the 26/11 attacks in Mumbai.
    • The standing council of the NCTC will consist of anti-terror agencies in states.
    • The body will have 3 divisions dealing with collection and dissemination of intelligence, analysis and operations.

    How did the proposal to set up the NCTC originate?

    • The NCTC has been designed on the lines of the American NCTC and UK’s “Joint Terrorism Analysis Centre”.
    • Home Minister P. Chidambaram and former National Security Adviser (NSA) M.K. Narayanan visited USA in 2009 to study the working of the American NCTC.

    What will NCTC do?

    • It will have the power to conduct searches and arrests in any part of India.
    • It will collect, collate and disseminate data on terrorism.
    • It will also maintain a database on terrorist and their associates including their families.
    • In short, NCTC will serve as a single and effective point of control and coordination of all counter terrorism measures.

    But, What is the Multi-Agency Centre (MAC)?

    It is platform to share varied intelligence inputs coming from various agencies like –

    • Directorate of Revenue Intelligence (DRI)
    • Economic Intelligence Agency (EIA)
    • Enforcement Directorate (ED)

    How is it different from US and UK model?

    • USA’s NCTC which deals only with strategic planning and integration of intelligence without any operational involvement.
    • UK‘s Joint Terrorism Analysis Centre, which too plays a purely coordinating role.
    • But the Indian NCTC will have not only intelligence functions but also powers to conduct operations, raids and arrests in any part of India.

    What is the problem with NCTC?

    NCTC was to start working from March 2012, but it could not be launched due to opposition from a group of Non-Congress chief ministers who say that NCTC is against the federal structure of the country.

    Power to Arrest without informing State Government

    • Non-Congress CM’s allege that the NCTC has been empowered to search and arrest people without informing the state government, police or anti-terror squad in the loop.
    • The role of the state becomes redundant with such powers and states would have no say or role to play in the fight against terrorism.
    • This would have a bearing on the rights and privileges of the states as enshrined in the Constitution.
    • To curb this fear, Home Ministry had altered the rules.
    • Now, the senior most police officers in all states – the Director Generals of Police and the chiefs of anti-terror squads of all states will be members of the Standing Council of the NCTC.

    Overlapping with NIA

    • National Investigation Agency (NIA) was established after the 26/11 attacks.
    • So, the establishment of a new NCTC would only add to the bureaucratic tangle in intelligence sharing and counter terrorist action.
    • However, Mr. Chidambaram had assured that NIA is merely a predecessor of NCTC. (so, once NCTC comes into operation, the NIA will function under it or will be submerged into NCTC)

    What is the Centre’s stance on this?

    • The UPA, however, has defended the setting up NCTC arguing that it will not trample on the rights of the states.
    • Congress spokesperson Manish Tewari said that terror is a real threat and “it is necessary to bring together all elements of national power in real in order to surmount a formidable challenge to it.”

    Published with inputs from Arun
  • Indian Polity | Types of Majorities

    There are 4 main types of Majority. The last one is Special Majority which has 3 sub-types.

    The most important Majorities will be Simple Majority and Special Majority of the 2nd kind. We will use the current strength of the Lok Sabha = 545 in the examples to explain.

    1. Absolute – More than 50% of the Total Strength of the House. Meaning

    1/2 x 545 = 273 or more. 

    This majority is never used anywhere but has a huge significance. If a political party has an Absolute Majority, it means it gets to form the govt., there is stability in the house.  

    1. Simple – Also called functional majority. It means a Majority of more than 50% of members present and voting.

    Let’s assume the members present and voting is 300 (out of 545). We have –

    1/2 X 300 = 150 or more

    Usage

    • When not stated what type of Majority in the Constitution, this majority is assumed.
    • Passage of Ordinary, Money, and Financial Bills.
    • Passage of No-Confidence Motion, Confidence Motion, Vote of Thanks to the President, Censure Motion, Adjournment Motion, Calling Attention Motion.
    • Election of the Speaker, Dy. Speaker, Dy. Chairman of RS.
    • Passage of approval to President’s Rule and Financial Emergency.
    • Approval by LS for discontinuance of Emergency.
    1. Effective – Means Majority of the Effective Strength of the House where Effective Strength is defined as Total Strength – No. of Vacancies. Vacancies arise due to 3 reasons – Death, Disqualification, and Resignation. Some sources mention Absenteeism as a vacancy but that is incorrect.

    Let’s assume the Number of Vacancies is 6. We have

    1/2 X (545-6) = 270 or more

    Usage

    • Removal of the VP. Initiated by the RS, requires an Effective Majority in the RS, thereafter Simple Majority in the LS. (this procedure is assumed since the Constitution doesn’t explicitly state it. Actual text available here)
    • Removal of the Speaker, Dy. Speaker and Dy. Chairman of the Rajya Sabha.
    1. Special – This majority has 3 sub-types that require some attention.

    1st kindNot less than 2/3 of the Members present and voting.

    Usage (only in 2 conditions)

    • Passage of Resolution under Art. 249 and Art. 312. What are they and when have they been used? 

    2nd kind: Fulfills the following criteria

    i) Not less than 2/3 of the Members present and voting.

    ii) Majority of the Total Strength of the House.

    Eg. Out of 545, 450 Members are present and 300 vote in favor. Both the above conditions are satisfied – 300 is more than 2/3 of 450 and 300 is more than 1/2 of 545.

    To make it simpler to remember, it is Special Majority of First kind + Absolute Majority.

    Usage

    • Passage of Constitutional Amendment Bills under Art. 368.
    • Approval by both Houses for the continuance of Emergency.
    • Removal of Judges of SC, High Court, CAG, CEC.
    • Approval for the creation of the State Legislative Council of a State under Art. 169.

    3rd kind:  This is used only once – during the impeachment of the President of India. Is mentioned in Art. 61 of the Constitution.

    2/3rd Majority of the Total Strength of the House.

    2/3 X 545 = 364 or more

    As a rule of thumb, you should never mention Special Majority in any answer as it could mean any of the 3 Special Majorities. 

  • Indian Polity | A Quick Brush up with Our Emergency Provisions

    Indian Polity | A Quick Brush up with Our Emergency Provisions

    Very quickly then, most of us are familiar with the 3 types of emergencies.

    We will study them under 3 heads –

    #a. When can they be imposed?

    #b. Features

    #c. Effects


    #1. Art. 352 – National Emergency

    a. When can it be imposed?

    3 conditions – War, External Aggression, Armed Rebellion

    Note1: Armed Rebellion was changed from Internal Disturbance on the recommendation of the Shah Commission. Internal Disturbance was a vague term prone to misuse.

    Q1: What’s the difference between War and External Aggression?

    No technical difference! The President makes a “Proclamation of Emergency”. If it says its a war, its a war likewise of external aggression.

    b. Features

    Flashback : Lets go back to the time of the Emergency. All it took then was an oral instruction by the then PM Indira Gandhi to President Fakhruddin Ali Ahmed (who received a lot of criticism).

    To understand National Emergency, we need to examine the 44th Amendment Provisions whose sole purpose was to put a check on such powers of the President.

    • Can only be proclaimed on the written advice of the Union Cabinet (not the PM). Perhaps, this is the only place where Union Cabinet has a role.
    • Expires in 1 month from its issue unless approved by a Special Majority (of the second kind*) – Not less than 2/3rd of the Members present and voting + Absolute Majority – in both the houses of the Parliament.
    • If the LS is dissolved, then RS shall approve it within 1 month and the re-constituted LS shall ratify within 30 days.
    • Once approved, the proclamation is extended for 6 months, which can be extended again for 6 more months.
    • Not less than 1/10th of the Members of the LS(this can only be initiated in the LS) may give notice in writing to the Speaker or President (when LS is not in session). If there is no session, a special sitting of the LS shall be held within 14 days. If the resolution, the President has to revoke the Emergency.

    c. Effects

    • Executive : State Govt. is not suspended. Union Govt. can issue orders to the State Govt. on subjects on the State List (something that it can’t normally do).
    • Legislature : State Legislature is not suspended. However, Parliament can make laws on the State subjects. Such laws remain valid for 6 months after the Emergency ceases to be.
    • Financial : Distribution as per the President’s will subject to approval by the Parliament.

    Effect on FR (2 clauses here)

    • Art. 19 automatically suspended (only in case of War and External Aggression)
    • President by a further order can specify other FRs that wont be operative, excepting Art. 20 and 21.

    Art. 20 and 21 are fundamental of the FRs and cannot be suspended. Interested readers can read the story of Judge Khanna’s courage here.



    #2. Art. 356 – President’s Rule

    a. When can it be imposed?

    If the President is satisfied that there exists a situation where the State Admin. cannot be carried in accordance with the provisions of the Constitution, he can make a Proclamation of Failure of Constitutional Machinery in a State.

    Ambedkar had envisaged Art. 356 to remain a dead letter in the Constitution. Much to his surprise it has been used not less than 119 times during the first 63 years.

    b. Features

    Such a proclamation lapses after 2 months, unless approved by the Parliament by a simple majority. Once approved, it lasts for 6 months which can again be extended for 6 more months subjected to maximum of 3 years.

    To extend it beyond 1 year, 2 conditions must be fulfilled

    • National Emergency should be in operation (in whole of India or whole or any part of the State).
    • ECI certifies that elections cannot be conducted in the state.

    c. Effect

    The President can

    • declare Executive powers of the State rest with him. He can also delegate the same to any other authority (like the Governor) as per his liking.
    • dissolve or suspend the State Legislature. If suspended, the Parliament can exercise its legislative powers. (or delegate it to any other authority)

    Effect on FR : No Effect


    #3. Art. 360 – Financial Emergency (^Never imposed till date)

    a. When can it be imposed? 

    If the President is satisfied that a situation has arisen whereby the financial stability or credit of India or of any part of the territory thereof is threatened, he may by a Proclamation make a declaration to that effect.

    b. Features

    It will ordinarily remain in force for 2 months, unless its is approved by both the houses. If LS is dissolved in this period, similar clause as that of the National Emergency applies.

    c. Effect

    The financial autonomy of the states is transferred. The President can

    • suspend distribution of financial resources.
    • issue directions to follow canons of finance.
    • direct the State Govt. to reduce the Salaries of their employees.
    • direct the governors to reserve all financial and money bills for his consideration.

    Effect on FR : No Effect


    Now is the time for 2 quick questions

    1. Attempt the following table. You need to give me the dates corresponding to A,B,C,D,E,F.
    TypeDate of IssueLast Date of ApprovalLast Date of Validity
    3521/1/2016AB
    3561/1/2016CD
    3601/1/2016EF
    1. Mention that checks and balances put in place to curb the improper use of Art. 356.

    Hint : R. Bommai vs Union Of India

    Additional Reads 

    1. Click here for everything on the types of Majority.
    2. Justice Khanna’s Courage 
  • Khawalailung village: A Mizo ‘role model’ of Peace and Development

    On 25th October 2015’s ‘Mann-ki-Baat’ radio programme through All India Radio, when the Prime Minister Narendra Modi took the name of the hitherto little known Mizoram’s Khawalailung village from the remote Champai district, most Mizos were impressed.

    Almost the entire state echoed in one tone ‘kalaw mein’ (Thank You in Mizo language) to the Prime Minister Sh. Narendra Modi for his radio talk.

    Khawahlailung_village_mizoram


    So, What’s special about Khawalailung villages?

    Most Mizo villages are community maintained, disciplined and clean. Visitors are often stunned to witness the kind of self-governing mechanism, even symbolism and perfectionist methods are maintained on the movement of dogs, cattle and chickens in these villages.

    Community and voluntary works are held to clean the village frequently, butchering of animals and selling meat on roadsides are banned and animals are slaughtered only in an appointed slaughterhouse and meat, staple food of the natives are sold only in a designated meat market. There are also segregated areas for selling fish.

    How is this change inclusive of the Swachh Bharat Abhiyan? 

    Cleanliness of villages across Mizoram, across northeastern India and the rest of India is also part of an ambitious national programme being undertaken under Swachh Bharat Abhiyan.

    Now the village Khawalailung will be perhaps in a position to be showcased as a model village under both National Clean Mission and also Sansad Adarsh Gram Yozana.

    The new Adarsh Gram Yojana is a Rural Development programme, broadly focusing upon the development in the villages which includes social development, cultural development and spread motivation among the people on social mobilization of the village community. This programme was also launched by the on the birth anniversary of Jayaprakash Narayan on 11 October, 2014.

    Some statistics about this special village

    To start with, one vital statistics about the village Khawlailung is that the hamlet has higher literacy rate compared to the state’s (Mizoram) own records. In 2011, literacy rate of Khawlailung village was 95.05 per cent compared to 91.33 per cent of Mizoram. In Khawlailung Male literacy stood at 97.01 per cent while female literacy rate was 93.10 per cent.

    How do Mizo villages transform into Model Villages?

    Under the ‘model village’ or Adarsh Gram programme, Khawlailung village with a population of 520 villagers has already taken important initiatives, like a Joint Action Committee (JAC) was constituted in the village to check the menace of drugs and alcohol-related problems.

    Seminars on importance of cleanliness were held many times in the village and many sanitation groups were formed to undertake practical work.

    For projects under the aegis of Agriculture sector, the village was also benefitted with the grant of machines for juicing sugarcane for 22 families engaged in manufacture of molasses/raw sugar (gur) at a highly subsidised rate.

    Similarly, beneficiaries were identified and assistance provided under the Integrated Wasteland Development Project (IWDP) for construction of farm pond and terrace.

    Under Rashtriya Krishi Vikas Yojana (RKVY) families were also identified and provided with one piglet each. In fact, the list of good works in the tiny village can go on.

    But what needs to be appreciated and in fact emulated is the pragmatic and inherently hard working nature of the Mizo people.

    If the villagers in other northeastern states and more so in rural areas in states like Jharkhand and Chhattisgarh can emulate the Mizo people, things can change a lot.

    Originally a primordial economy, Mizoram today represents a modern society with higher rate of literacy, good knowledge bank of English education and quality works in cane works, handloom and agriculture.

    Truly, going by the spirit of the statement, it is high time for the people of the region to mobilise wider public opinion against all sorts of violence and bring about lasting peace in the north east region.


     

    Source - PIB features | Pic - Mizo
  • CCTNS Project: Reforming the Policing in India

    Recently, govt. extended the deadline for implementation of the Rs 2,000-crore CCTNS project to March 2017

    Let’s know more about it!!


     

    What is the CCTNS project?

    CCTNS is a Mission Mode Project under the National e-Governance Plan of Govt of India.

    The Crime and Criminal Tracking Network and Systems (CCTNS) project was launched in 2009 in the aftermath of the 26/11 attacks.

    It aims at establishing seamless connectivity among 15,000 police stations across the country, and an additional 5,000 offices of supervisory police officers.


     

    What are the objectives of CCTNS?

    • Make the Police functioning citizen friendly and more transparent by automating the functioning of Police Stations.
    • Improve delivery of citizen-centric services through effective usage of ICT.
    • Provide the Investigating Officers of the Civil Police with tools, technology and information to facilitate investigation of crime and detection of criminals.
    • Facilitate interaction and sharing of information among Police Stations, Districts, State/UT headquarters, etc.
    • Assist senior Police Officers in better management of Police Force.
    • Keep track of the progress of Cases, including in Courts.
    • Reduce manual and redundant records keeping.

    How was such an idea of CCTNS conceived?

    The project was the brainchild of former Home Minister P Chidambaram.

    CCTNS entailed digitisation of data related to FIRs registered, cases investigated, and chargesheets filed in all police stations, in order to develop a national database of crime and criminals.

    It was envisaged as a system to facilitate collection, storage, retrieval, analysis, transfer and sharing of data and information at the police station.

    Why was this system needed?

    There was lack of communication between police of different states. Each police station was an island, where records were maintained manually.

    The need was felt for a technology-driven network which would enable real- time interaction between police stations.

    What is the progress made in the project?

    2009: CCEA approved the project with an allocation of Rs. 2000 crore. The initial deadline for setting it up was 2012, which was revised to March 2015.

    2015: Union Cabinet decided to revamp and fast-track the project, and complete its implementation by March 2017.

    New Development: Govt. has decided to implement the Integrated Criminal Justice System (ICJS) by integrating CCTNS with e-courts, e-prisons, forensics and prosecution in order to transfer data among the various pillars of the criminal justice system.

    Over 11,600 police stations countrywide are now using the CCTNS software to register FIRs. More than 26 lakh FIRs were registered through CCTNS over the past year.

    How will citizens benefit from CCTNS?

    It will lead to the creation of a central citizen portal with links to state-level citizen portals.

    This will bring several citizen-friendly services online such as police verification for purposes including passports, reporting a crime, tracking the progress of a case, reporting of grievances against police officials, access to victim compensation fund, and legal services.

    A list of proclaimed offenders, sex offenders and most wanted criminals will also be published on the citizen portal.


    Published with inputs from Pushpendra

  • PJ Nayak Committee for Governance reforms [Comic strip]

    A week back or so, we fiddled with the idea of introducing flashcards of basic theoretical terms which bug early stage aspirants when they read daily news. Here’s the post on that.

    This time, we are going in a step further. And what better way to deal with complex concepts, than with a comic strip interspersed with conversations and questions! Sounds fun? Here we go.

    The rules of this initiative. Only 2, not much! 

    1. We will introduce a module from static or current affairs in the most interesting way that we can conjure up.
    2. We will poke holes in the committee reports, suggestions, policy changes, historical blunders etc etc so that we all pitch in with clarifications and help each other understand the basics of things.

      Over to the topic at hand then…

    P J Nayak was entrusted (by none other than Raghuram Rajan) to head an RBI committee on banking governance and present a report, which he did in style:


     

     

    Do you know why banks were nationalised way back in Indira Gandhi’s time?

    And why it might still be a good idea (according to government) to keep control over them?



     

    For newly enthused aspirants, it might be a good idea to go figure the pros and cons of such heavy oversight of FinMin – RBI – CAG – CVC over public sector companies in general (banks or otherwise).


     


     

    If you were to represent government’s interest here, what would your rebuttal be? Take a hint from the its seven-pronged strategy called ‘Indradhanush’ to revamp public-sector banks. P J Nayak wasn’t very happy with that!

  • Indradhanush to revamp PSB. Will the 7 steps work?

    The Indradhanush framework for transforming the PSBs represents the most comprehensive reform effort undertaken since banking nationalisation in the year 1970.

    What is the Indradhanush Mission?

    Government of India’s 7 point reforms to revamp public sector banks and its performance.

    Why do we need (yet another scheme) Indradhanush!

    • In the past few years, Public Sector Banks which have got predominant share of infrastructure financing have been sorely affected due to delay caused in approvals and land acquisition so, many large projects have stalled.
    • It resulted in lower profitability for PSBs, mainly due to provisioning for the restructured projects as well as for gross non-performing assets (NPAs).
    • High levels of non-performing assets in state-run banks have made it hard for the government to revive investment or accelerate growth.


     

    Seven Colours to resurrect PSB?

    1. Appointments: 
      • The Government decided to separate the post of Chairman and Managing Director and there would be another person who would be appointed as non Executive Chairman of PSBs.
      • This approach is based on global best practices and as per the guidelines in the Companies Act to ensure appropriate checks and balances.
      • The selection process for both these positions has been transparent and meritocratic.
    2. Board of Bureau: 
      • The BBB will be a body of eminent professionals and officials, which replace the Appointments Board for appointment of Whole-time Directors as well as non-Executive Chairman of PSBs.
      • They will also constantly engage with the Board of Directors of all the PSBs to formulate appropriate strategies for their growth and development.
    3. Capitalisation:
      • As of now,the PSBs are adequately capitalized and meeting all the Basel III and RBI norms.
      • However, the GOI wants to adequately capitalize all the banks to keep a safe buffer over and above the minimum norms of Basel III.
      • Infusion of 25,000 crore rupees of capital into debt-laden banks in this fiscal in phased manner. Out of this 20,000 crore rupees would be injected in August 2015.
    4. De-Stressing PSBs: 
      • Projects are increasingly stalled/stressed thus leading to NPA burden on banks.
      • In a recent review, problems causing stress in the power, steel and road sectors were examined.
      • Pending policy decisions to facilitate project implementation/operation would be taken up by respective Ministries.
      • Flexibility in restructuring of existing loans wherever the Banks find
        viability.
      • Six new Debt Recovery Tribunals (DRT) to speed up the recovery of bad loans of the banking sector
      • To develop vibrant debt market for PSBs in order to reduce lending pressure on banks. Strengthen asset reconstruction of companies.
    5. Empowerment: 
      • There will be no interference from Government and Banks are encouraged to take their decision independently keeping the commercial interest of the organisation in mind.
      • Banks will build robust Grievances Redressal Mechanism for customers as well as staff so that concerns of the affected are addressed effectively in time bound manner.
      • The Government intends to provide greater flexibility in hiring manpower to Banks.
    6. Framework of Accountability: 
      • A new framework of Key Performance Indicators (KPIs) to be measured for performance of PSBs.
      • Streamlining vigilance process for quick action for major frauds including connivance of staff.
    7. Governance Reforms: 
      • The process of governance reforms started with “Gyan Sangam” – a conclave of PSBs and FIs organized at the beginning of 2015 in Pune.
      • There was focus group discussion on six different topics which resulted in specific decisions on optimizing capital, digitizing processes, strengthening risk management, improving managerial performance and financial inclusion.
      • Next Gyan Sangam will be held between 14 to 16 Jan 2016 to discuss strategy with top level officials.

    Are PSBs now ready to compete and flourish in a fast-evolving financial services landscape, What say?


     

    Published with inputs from Arun
  • All about the Swachh Bharat Abhiyan

    What are the recent updates on Swachh Bharat Abhiyan?

    1. The union government had launched Swachh Bharat Abhiyan(SBA) on 2 October 2014 with two submissions, SBA (gramin) and SBA (urban).
    2. Budgetary provisions for the two submissions will be provided separately in the Demand for Grants of the Ministry of Drinking Water and Sanitation (MDWS) (for gramin) and the Ministry of Urban Development (for urban).
    3. Two other ministries, the Ministry of Women and Child Development (MWCD) and the Ministry of Human Resource Development (MHRD), more specifically, the latter’s Department of School Education and Literacy, will be responsible for the construction of anganwadi and school toilets.

    Let’s go back in time and come forward via a timeline, shall we?

    • Prior to the onset of SBA, the first major intervention by the union government was the Accelerated Rural Water Supply Programme (ARWSP) in 1972–73, to support states and union territories with financial and technical assistance to implement drinking water supply schemes in “problem villages.”
    • In 1986, a technology mission with stress on water quality, appropriate technology intervention, human resource development support and other related activities was introduced. This was renamed as the Rajiv Gandhi National Drinking Water Mission (RGNDWM) in 1991.
    • In 1999–2000, sector reform projects were evolved to involve the community in planning, implementation and management of drinking water-related schemes.
    • In 2002, this was scaled up as the Swajaldhara programme.
    • From 2009 onwards, it was rechristened as the National Rural Drinking Water Programme (NRDWP).

    The NRDWP and the Nirmal Bharat Abhiyan (NBA) have been the union government’s flagship programmes for rural drinking water and sanitation.

    However, the SBA draft, circulated on 22 August 2014, combines the drinking water supply and sanitation programmes and wishes to achieve safe-water supply and open defecation-free status in both urban and rural India by 2019, the year that will mark the 150th birth anniversary of Mahatma Gandhi.


    Can India be swachh without the caste ethos being completely eradicated?

    The Government draft acknowledges the need for better drinking water and sanitation facilities in both rural and urban India, especially for women and children.

    Some words from Government draft,

    “While having a toilet is important for everyone, access to safe, clean toilets brings particular benefits to women and girls. Freed from the need to defecate in the open, they no longer have to suffer the indignity, humiliation and often verbal and physical abuse when relieving themselves. Sexual harassment and rape are a risk for many women who without a household toilet have to wait until nightfall to seek the privacy of darkness outside to relieve themselves. Women and girls don’t need toilet facilities just for defecation; they also need privacy and dignity when menstruating. The symptoms of menstruation, pregnancy and the postnatal periods become more traumatic if women have no space to deal with them. The need for sanitation facilities within homes and in public places, which meet women’s physical and psychological demands, cannot be overemphasized. (GoI 2014).


     

    The draft deals with key challenges and the way forward to make the mission successful.

    1. Behavioural change influencing 590 million population in rural areas, the problem of convergence between the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) and NBA, lack of water availability in toilets, defunct toilets, inadequacy of staff at the ground level, these are the key challenges noted by the draft.
    2. A recent study by Coffey et al (2014) found that “many survey respondents’ behaviour reveals a preference for open defecation: over 40% of households with a working latrine have at least one member who defecates in the open.” Open defecation is a socially accepted traditional behaviour in India, especially in rural areas.
    3. It has been a tough job to convince a section of the population to regularly use constructed toilets. But, countries like Bangladesh and Indonesia have shown remarkable change in behaviour towards sanitation after comprehensive information, education and communication (IEC) was imparted.
    4. Grants to the States : “It would be better to release not as per the present formula giving entitlement of States, but on a projected basis, on the basis of the Detailed Project Report of a district as a whole both for water and sanitation.”

    What are the key financial roles for this mission to be a success?

    Well, At the moment, government is relying on the corporate social responsibility (CSR) and individual donations for funds. The fund under CSR would be channelled through Swachh Bharat Kosh (SBK) headed by secretary, Department of Expenditure.

    The SBA introduces awards for panchayati raj institutions (gram panchayats, block panchayats and district panchayats), individuals, officers, non-governmental organisations (NGO) and also for best practices.

    Parting Words

    1. Quite a bit of euphoria has been in the air with regard to the SBA, thanks to extensive media coverage.
    2. Responses to SBA can be categorised under two heads –
      • On the one hand, the upper classes/castes have appreciated the effort; they envisage a business opportunity and visualise a dirt-free India (in their eyes, dirt is associated with the lower castes/classes).
      • On the other hand, a large section of population (the deprived) has no clue as to what has been going around in the name of swachhta.

    But one thing for sure, without sufficient capital and well-trained labour, this mission may miss its deadline.

    What do you think?


     

    Published with inputs from Arun.
  • Special Category Status and States

    • What is ‘Special Category’ status?
      What benefits do states having ‘Special Category’ status enjoy?
    • Who accords the category status to state and how?
    • Which states held Special category status?
    • Lacunas in the working of Special Category status
    • Why the status has been removed?
    • Way ahead now

    What is ‘Special Category’ status?

    • ‘Special category’ status is a classification given by Centre to assist in development of those states that face geographical & socio-economic disadvantages like hilly terrains, strategic international borders, economic & infrastructural backwardness and non-viable state finances.
    • The classification came into existence in 1969 as per the suggestion given by the Fifth Finance Commission, set up to devise a formula for sharing the funds of Central govt. among all states.

    What benefits do states having ‘Special Category’ status enjoy?

    • Significant concession in excise & customs duties, income tax and corporate tax
    • 30 percent of planned expenditure (central budget) goes to ‘special category’ states
    • Special Category states are benefited because of Normal Central Assistance which was skewed in favour of these states. These states get more funds in terms of NCA and most part of these funds was in the form of grants rather than loans.
    • Special Central Assistance given to SCS is also an additional amount which can be used by the concerned state for economic development.
    • Centre bears 90% of the state expenditure (given as grant) on all centrally-sponsored schemes and external aid while rest 10% is given as loan to state. For general category, the respective grant to loan ratio is 30:70 where as external aid is passed on in the same ratio as received at the centre.
    • Unspent money does not lapse and gets carry forward.

    Hence, special-category status catalyses the inflow of private investments and generates employment and additional revenue to state. Since centre bears 90% of state expenditure on all centrally-sponsored schemes, state can take more welfare-based schemes from the new savings.

    Further, more grants from centre helps in building state infrastructure and social sector projects. As a result, special-category state gets to bridge its development deficit.

    Who accords the category status to state and how?

    Special Category’ status had been granted in the past by the Union government to States having certain characteristics based on the recommendations of the National Development Council.

    These include

    i) hilly terrain;

    ii) low population density and/or sizeable share of tribal population;

    iii) strategic location along borders with neighbouring countries;

    iv) economic and infrastructure backwardness; and

    v) non-viable nature of State finances.

    Special Category States

    source

    Which states held Special category status?

    11 states used to have ‘special category’ status, namely, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Jammu & Kashmir, Himachal Pradesh, and Uttarakhand.

    Lacunas in the working of Special Category status

    • Firstly, the way Special Category Status were assigned to a state has been a matter of debate. Various committees used different parameters to classify a state in Special Category status.
    • Some states lobby central government to classify them in special category. This was to be corrected and the consent of majority of state must be taken before granting a special category status to any state.
    • Moreover there should have been a general consensus among states related to principle used for granting the SCS.
    • Secondly, data reveals that even after awarding Special category status not much economic progress has been noticed among states. This may mean that for economic development it’s important to follow sound economic policy. Benefit of SCS may act as a stimulus but rest depends on the individual state policy.
    • Third, the amount of proceeds that states receive has increased after 14th finance commission. So the structure does not seem to have any specific relevance in present context.

    Why has the status been removed now?

    The Finance Ministry’s reasoning for withdrawing the status is that the higher 42% devolution takes into account all needs of states.

    Way ahead?

    Following the demand for Special Status by Bihar, a committee was appointed under Dr. Raghuram Rajan in 2013. This committee suggested that States classified as ‘Special Category States’ and those seeking inclusion in that category, would find that their need for funds and special attention more than adequately met by a basic allocation to each State and the categorisation of some as ‘least developed’.

    Considering special status to any new State will result in demands from other States and dilute the benefits further. It is also not economically beneficial for States to seek special status as the benefits under the current dispensation are minimal. States facing special problems will be better off seeking a special package.


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