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Type: Bills/Act/Laws

  • Centre’s new labour codes to allow 4-day work per week

    The Centre under its new labour codes would soon provide an option for organisations to allow their employees to work for four days in a week.

    What is the news?

    • The proposed new labour codes could provide companies with the flexibility of four working days in a week.

    What does this mean?

    • The working hour’s limit of 48 hours for a week will remain unchanged.
    • This implies that there will be long working hours if the working days are reduced.
    • Having a reduced number of working days does not mean a cut in paid holidays.
    • Therefore, when the new rules will provide the flexibility of four working days, it would imply three paid holidays.

    Roll out of the proposal

    • The Ministry of Labour and Employment is likely to complete the process to finalise the rules for four labour codes soon.
    • The provision of flexibility to have reduced working days of four days in the labour code rules will mean that companies will not require prior government nod to enact it.

    Why such a move?

    • The well-being of employees improves with less workload. Working parents can spare more time for the childcare.
    • It helps the economy and the environment since power and fuel consumption is reduced.

    Ahead of Labour reforms

    • The ministry is in the final phase of amalgamating 44 central labour laws into four broad codes.
    • The four Codes include- Code on Wages, Industrial Relations, Occupational Safety, Health and Working Conditions (OSH) and Social Security Codes.

     

  • Back in news: DNA Bill, 2019

    Noted Parliamentarians have filed a dissent to the Parliamentary Standing Committee’s report on DNA Technology (Use and Application) Regulation Bill 2019.

    Q. A statutory protection for private data is necessary for the enforcement of DNA Technology (Use and Application) Regulation Bill, 2019. Critically analyse.

    What is the news?

    • The finalized Draft Report recognizes the potential dangers of indexing the DNA profiles of non- convicts, especially convicts and suspects, it has still retained these objectionable provisions.
    • These MPs have claimed that the Bill does not take into account public concerns over privacy violations and targets Dalit, Muslims and Adivasis by way of DNA sample collection.
    • The fear is that the law could be used for caste or community-based profiling.

    Other issues

    • The bill would not be a panacea to the problems of an inadequate criminal justice system, the MPs stressed.
    • He flagged the example of the United Kingdom, where the number of crimes solved by DNA evidence had been reducing even though the number of profiles in the system was going up.

    DNA Technology (Use and Application) Regulation Bill, 2019

    • The primary intended purpose for the enactment of the bill is for expanding the application of DNA-based forensic technologies to support and strengthen the justice delivery system of the country.
    • The utility of DNA based technologies for solving crimes, and identifying missing persons, is well recognized across the world.
    • Other aims include Speedier justice delivery and an Increased conviction rate.
    • Bill’s provisions will enable the cross-matching between persons reported missing and unidentified dead bodies found in various parts of the country, and also for establishing the identity of victims in mass disasters.
    • By providing for the mandatory accreditation and regulation of DNA laboratories, the Bill seeks to ensure the data remain protected from misuse or abuse in terms of the privacy rights of our citizens.
    • The Bill has two major components: the DNA databanks and the DNA Regulatory Board.

    Criticisms of the Bill

    Matter of Consent

    • Written consent is required from everyone for their DNA samples to be collected, processed, and included in the database except for those who have committed crimes with a punishment of 7+ years or death.
    • However, similarly, specific instruction is missing for the collection of DNA samples for civil matters.
    • Such matters include parentage disputes, emigration or immigration, and transplantation of human organs.
    • The Bill also doesn’t state that the consent has to be voluntary.

    Civil Disputes

    • It is not clear if DNA samples collected to resolve civil disputes will also be stored in the databank (regional or national), although there is no index specific for the same.
    • If they will be stored, then the problem cascades because the Bill also does not provide for information, consent, and appeals.
    • If a person’s DNA data has entered the databank, there is no process specified by which they can have it removed.
    • All of these issues together could violate the right to privacy.

    The authenticity of DNA Labs

    • There’s also the question of whether the DNA labs accredited by the Regulatory Board are allowed to store copies of the samples they analyze.
    • And if so, how the owners of those samples can ensure the data is safe or needs to be removed from their own indices.
    • It’s unclear if the Regulatory Board will oversee other tests performed at the accredited labs.
    • This could become necessary because, unlike one’s biometric data or PAN number, the human genome contains lots of information about every individual.

    Overreaching access to identity

    • So a test undertaken to ascertain a person’s identity by analyzing her DNA will in the process also reveal a lot of other things about that person, including information about their ancestry i.e. information that the individual has a right to keep private.
    • The Bill does not specify which parts of an individual’s DNA can be analyzed to ascertain their identity.
    • The more parts are subjected to analysis, the more conclusively a person’s identity can be established.
    • But this can’t be used as a license to parse more than is necessary because then the DNA lab is also likely to reveal more information than it has the right to seek.

    The way forward: Data protection

    • The bill can become oppressive without a robust data protection law.
    • Statutory protection for private data is critical because it provides a mechanism for enforcement of rights, grievance redressal, and independent oversight.
    • When the data being collected is as sensitive as DNA, it requires additional protection.

  • Redefining essential items: why it was needed, and who it will impact

    Recently, the Rajya Sabha passed the Essential Commodities (Amendment) Bill, 2020 which is aimed at deregulating commodities such as cereals, pulses, oilseeds, edible oils, onion and potatoes.

    Try this question:

    What are the salient features of Essential Commodities (Amendment) Bill, 2020?

    Essential Commodities (Amendment) Bill, 2020

    • It amends the Essential Commodities Act, 1955, by introducing a new Subsection 1(A) in Section 3.
    • After the amendment, the supply of certain foodstuffs — including cereals, pulses, oilseeds, edible oils, potato — can be regulated only under extraordinary circumstances, which include an extraordinary price rise, war, famine, and natural calamity of a severe nature.
    • In effect, the amendment takes these items out from the purview of Section 3(1), which gives powers to the central government to “control production, supply, distribution, etc, of essential commodities”.
    • Earlier, these commodities were not mentioned under Section 3(1) and reasons for invoking the section were not specified.

    How is an ‘essential commodity’ defined?

    • There is no specific definition of essential commodities in the Essential Commodities Act, 1955. Section 2(A) states that an “essential commodity” means a commodity specified in the Schedule of the Act.
    • The Act gives powers to the central government to add or remove a commodity in the Schedule.
    • The Centre, if it is satisfied that it is necessary to do so in the public interest, can notify an item as essential, in consultation with state governments.

    Which are those commodities?

    • According to the Ministry of Consumer Affairs, Food and Public Distribution, which implements the Act, the Schedule at present contain seven commodities.
    • They are drugs; fertilizers, whether inorganic, organic or mixed; foodstuffs including edible oils; hank yarn made wholly from cotton; petroleum and petroleum products; raw jute and jute textiles; seeds of food-crops and seeds of fruits and vegetables, seeds of cattle fodder, jute seed, cottonseed.
    • By declaring a commodity as essential, the government can control the production, supply, and distribution of that commodity, and impose a stock limit.

    Under what circumstances can the government impose stock limits?

    • While the 1955 Act did not provide a clear framework to impose stock limits, the amended Act provides for a price trigger.
    • It says that agricultural foodstuffs can only be regulated under extraordinary circumstances such as war, famine, extraordinary price rise, and natural calamity.
    • However, any action on imposing stock limits will be based on the price trigger.
    • Thus, in case of horticultural produce, a 100% increase in the retail price of a commodity over the immediately preceding 12 months or over the average retail price of the last five years, whichever is lower, will be the trigger for invoking the stock limit.
    • For non-perishable agricultural foodstuffs, the price trigger will be a 50% increase in the retail price of the commodity over the immediately preceding 12 months or over the average retail price of the last five years, whichever is lower.

    Why was the need for this felt?

    • The 1955 Act was legislated at a time when the country was facing a scarcity of foodstuffs due to persistently low levels of foodgrains production.
    • The country was dependent on imports and assistance (such as wheat import from the US under PL-480) to feed the population.
    • To prevent hoarding and black marketing of foodstuffs, the Essential Commodities Act was enacted in 1955. But now the situation has changed.
    • The production of wheat has increased 10 times while the production of rice has increased more than four times since five decades.
    • The production of pulses has increased 2.5 times, from 10 million tonnes to 25 million tonnes. In fact, India has now become an exporter of several agricultural products.

    What will be the impact of the amendments?

    • The key changes seek to free agricultural markets from the limitations imposed by permits and mandis that were originally designed for an era of scarcity.
    • The move is expected to attract private investment in the value chain of commodities removed from the list of essentials, such as cereals, pulses, oilseeds, edible oils, onions and potatoes.
    • While the purpose of the Act was originally to check illegal trade practices such as hoarding, it has now become a hurdle for investment in the agriculture sector in general, and in post-harvesting activities in particular.
    • The private sector had so far hesitated about investing in cold chains and storage facilities for perishable items as most of these commodities were under the ambit of the EC Act.
    • The amendment seeks to address such concerns.

    Why is it being opposed?

    • This was one of the three ordinances/Bills that have seen protests from farmers in parts of the country.
    • The Opposition says the amendment will hurt farmers and consumers, and will only benefit hoarders.
    • They say the price triggers envisioned in the Bill are unrealistic — so high that they will hardly ever be invoked.

  • New versions of labour codes – key proposals and concerns

    The government has introduced new versions of three labour codes – Industrial Relations Code Bill, 2020, Code on Social Security Bill, 2020 and Occupational Safety, Health and Working Conditions Code Bill, 2020.

    Try this PYQ:

    Q.Disguised unemployment generally means:

    (a) A large number of people remain unemployed

    (b) Alternative employment is not available

    (c) Marginal productivity of labour is zero

    (d) Productivity of workers is low

    What are the key proposals?

    (1) Industrial Relations Code Bill, 2020

    • In this, the government has proposed to introduce more conditions restricting the rights of workers to strike, alongside an increase in the threshold relating to layoffs and retrenchment.
    • The Code has raised the threshold for the requirement of a standing order — rules of conduct for workmen employed in industrial establishments — to over 300 workers.
    • This implies industrial establishments with up to 300 workers will not be required to furnish a standing order, a move which experts say would enable companies to introduce arbitrary service conditions for workers.
    • These steps are likely to provide more flexibility to employers for hiring and firing workers without government permission.

    (2) Social Security Code

    • It proposes a National Social Security Board which shall recommend to the central government for formulating suitable schemes for different sections of unorganised workers, gig workers and platform workers.
    • Also, aggregators employing gig workers will have to contribute 1-2 per cent of their annual turnover for social security, with the total contribution not exceeding 5 per.

    (3) Occupational Safety, Health and Working Conditions Code

    • This code has defined inter-state migrant workers as the worker who has come on his own from one state and obtained employment in another state, earning up to Rs 18,000 a month.
    • The proposed definition makes a distinction from the present definition of only contractual employment.
    • The Code, however, has dropped the earlier provision for temporary accommodation for workers near the worksites.
    • It has though proposed a journey allowance — a lump sum amount of fare to be paid by the employer for to and fro journey of the worker to his/her native place from the place of his/her employment.

    What are the other proposals for workers?

    • The IR Code Bill has also proposed a worker re-skilling fund.
    • The contributions for the fund are only detailed from the employer of an industrial establishment amounting to fifteen days wages last drawn by the worker immediately before the retrenchment along with the contribution from such other sources.
    • The mention of ‘other sources’ for funding the re-skilling fund is vague.

    What are the concerns raised over the new labour codes?

    • Analysts say the increase in the threshold for standing orders will water down the labour rights for workers in small establishments having less than 300 workers.
    • The increase is uncalled for and shows the government is very keen to give tremendous amounts of flexibility to the employers in terms of hiring and firing.
    • Dismissal for alleged misconduct and retrenchment for economic reasons will be completely possible for all the industrial establishments employing less than 300 workers.
    • The Industrial Relations Code also introduces new conditions for carrying out a legal strike.
    • The time period for arbitration proceedings has been included in the conditions for workers before going on a legal strike as against only the time for conciliation at present.

  • Labour law Reforms

    This session of Lok Sabha has passed 3 Historic and path-breaking Labour Codes.

    UPSC may ask the major laws subsumed under these Labour Codes.

    What are the 3 bills?

    The 3 bills which were passed are

    1. Industrial Relations Code, 2020
    2. Code on Occupational Safety, Health & Working Conditions Code, 2020 &
    3. Social Security Code, 2020

    All the labour laws (29 in number) being amalgamated into 4 labour codes are :

    Name of the Code 

    Amalgamated laws
    Wage Code

     

    		 4 laws –

    1. The Payment of Wages Act, 1936
    2. The Minimum Wages Act, 1948
    3. The Payment of Bonus Act, 1965
    4. The Equal Remuneration Act, 1976
    IR Code

     

    		 3 laws –

    1. The Trade Unions Act, 1926
    2. The Industrial Employment (Standing orders) Act, 1946
    3. The Industrial Disputes Act, 1947
    OSH Code

     

    		 13 laws –

    1. The Factories Act, 1948
    2. The Plantations Labour Act, 1951
    3. The Mines Act, 1952
    4. The Working Journalists and other Newspaper Employees (Conditions of Service) and Miscellaneous Provisions Act, 1955
    5. The Working Journalists (Fixation of Rates of Wages) Act, 1958
    6. The Motor Transport Workers Act, 1961
    7. The Beedi and Cigar Workers (Conditions of Employment) Act, 1966
    8. The Contract Labour (Regulation and Abolition) Act, 1970
    9. The Sales Promotion Employees (Conditions of Service) Act, 1976
    10. The Inter-State Migrant Workmen (Regulation of Employment and Conditions of Service) Act, 1979
    11. The Cine-Workers and Cinema Theatre Workers (Regulation of Employment) Act, 1981
    12. The Dock Workers (Safety, Health and Welfare) Act, 1986
    13. The Building and Other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996
    Social Security Code

     

    		 9 laws –

    1. The Employees’ Compensation Act, 1923
    2. The Employees’ State Insurance Act, 1948
    3. The Employees Provident Fund and Miscellaneous Provisions Act, 1952
    4. The Employment Exchanges (Compulsory Notification of Vacancies) Act, 1959
    5. The Maternity Benefit Act, 1961
    6. The Payment of Gratuity Act, 1972
    7. The Cine Workers Welfare Fund Act, 1981
    8. The Building and Other Construction Workers Welfare Cess Act, 1996
    9. The Unorganised Workers’ Social Security Act, 2008

     

    Here are the key features of these bills:

     (A) Social Security Code, 2020

    • The facility of ESIC would now be provided in all 740 districts. At present, this facility is being given in 566 districts only.
    • EPFO’s coverage would be applicable on all establishments having 20 workers. At present, it was applicable only on establishments included in the Schedule.
    • Provision has been made to formulate various schemes for providing comprehensive social security to workers in the unorganised sector.
    • A “Social Security Fund” will be created on the financial side in order to implement these schemes.
    • Work to bring newer forms of employment created with the changing technology like “platform worker or gig worker” into the ambit of social security has been done in the Social Security Code.
    • Provision for Gratuity has been made for Fixed Term Employee and there would not be any condition for minimum service period for this.
    • With the aim of making a national database for unorganised sector workers, registration of all these workers would be done on an online portal and this registration would be done on the basis of Self Certification through a simple procedure.

     (B) Occupational Safety, Health & Working Conditions Code, 2020

    • Free health checkup once a year by the employer for workers which are more than a certain age.
    • A legal right for getting Appointment Letter given to workers for the first time.
    • Cine Workers have been designated as Audio Visual Worker so that more and more workers get covered under the OSH code. Earlier, this security was being given to artists working in films only.

    (C)  Industrial Relations Code, 2020

    Efforts made by the Government for quickly resolving disputes of the workers include:

    • Compulsory facility for Helpline for redressal of problems of migrant workers.
    • Making a national database of migrant workers.
    • Provision for the accumulation of one day leave for every 20 days worked when work has been done for 180 days instead of 240 days.
    • Equality for women in every sphere: Women have to be permitted to work in every sector at night, but it has to be ensured that provision for their security is made by the employer and consent of women is taken before they work at night.
    • In the event of the death of a worker or injury to a worker due to an accident at his workplace, atleast 50 % share of the penalty would be given. This amount would be in addition to Employees Compensation.
    • Provision of “Social Security Fund” for 40 Crore unorganized workers alongwith GIG and platform workers and will help Universal Social Security coverage
    • Occupational Safety & Health Code to also can now over cover workers from IT and Service Sector.
    • 14 days notice for Strike so that in this period amicable solution comes out.

  • CAROTAR 2020 Rules

    The Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR, 2020) shall come into force from September 21.

    Try this PYQ:

    Q.In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently?

    (a) United Nations Environment Programme

    (b) World Trade Organization

    (c) ASEAN- India Free Trade Agreement

    (d) G-20 Summits

    CAROTAR rules

    • Importers will have to do their due diligence to ensure that imported goods meet the prescribed ‘rules of origin’ provisions.
    • This is the essential availing concessional rate of customs duty under free trade agreements (FTAs).
    • A list of minimum information, which the importer is required to possess, has also been provided in the rules along with general guidance.
    • Also, an importer would now have to enter certain origin related information in the Bill of Entry, as available in the Certificate of Origin.

    Why need CAROTAR?

    • CAROTAR 2020 supplements the existing operational certification procedures prescribed under different trade agreements.
    • India has inked FTAs with several countries, including Japan, South Korea and ASEAN members.
    • Under such agreements, two trading partners significantly reduce or eliminate import/customs duties on the maximum number of goods traded between them.
    • The new rules will assist customs authorities in the smooth clearance of legitimate imports under FTAs.

    Its significance

    • The ASEAN FTA allows imports of most items at nil or concessional basic customs duty from the 10-nation bloc.
    • Major imports to India come from five ASEAN countries — Indonesia, Malaysia, Thailand, Singapore and Vietnam.
    • The benefit of concessional customs duty rate applies only if an ASEAN member country is the country of origin of goods.
    • This means that goods originating from China and routed through these countries will not be eligible for customs duty concessions under the ASEAN FTA.

  • Essential Commodities (Amendment) Ordinance: A strong EC Act is still needed

    As the Union government announced massive reforms as a response to the coronavirus pandemic.  All attention went to three agriculture sector ordinances related to farmers’ trade, contract farming and amendments in the Essential Commodities Act.

    Try this question for mains:

    Q.Discuss how Essential Commodities Act works to maintain fair prices of commodities for consumers.

    Recent amendment to the EC Act

    • Recently, the Centre notified an Amendment Ordinance to the EC Act.
    • A new sub-section 1A in Section 3 of the act stipulated control orders — with respect to the supply of certain foodstuffs was added.
    • It would be issued only under extraordinary circumstances that may include war, famine, extraordinary price rise and natural calamity of grave nature.

    An order for regulating stock limit of any agricultural produce may be issued only if there is:

    • A full increase in the retail price of horticultural produce, or
    • A 50 per cent increase in the retail price of non-perishable agricultural food items over the price prevailing immediately preceding a year or the average retail price in the past five years, whichever is lower

    The Essential Commodities Act

    • The EC Act, 1955 was enacted at a time when the country faced an acute shortage of several commodities, especially food items.
    • Under the act, an ‘essential commodity’ is a commodity specified under the schedule of the Act.
    • The Union government is empowered to amend the schedule to add or remove a commodity to said schedule in the public interest and in consultation with state governments.
    • The schedule was amended recently in March 2020, when the Centre declared face masks and hand sanitisers as essential commodities and fixed their prices.

    Issues over the amendment ordinance:

    1. Ordinance route and federalism

    • Though agriculture is a state subject, the concurrent list empowers the Centre to legislate on production and trade and supply of foodstuffs.
    • By taking the ordinance route, a clear attempt was made to bypass the parliamentary process.
    • When a proposed amendment is introduced in Parliament, it is open to debate, scrutiny, comments and valuable inputs from stakeholders before being passed.

    2. Surpassing concerns

    • Critical legislation like this should certainly have been put before Parliament.
    • The Sarkaria Commission report on Centre-state relations pointed out that the Centre disproportionately empower itself in the sphere of agriculture.
    • The power of the Centre in agriculture management has certainly increased through this ordinance.
    • States like Tamil Nadu and West Bengal have repeatedly called for transfer such entities from the Concurrent to the State list.

    3. Constitutional validity and Ninth Schedule

    • The constitutional validity of price fixation under the act was in question before the Supreme Court in the Prag Ice and Oil Mills case, 1978.
    • It was observed that the dominant purpose of price fixation was to ensure availability of essential commodities to consumers at a fair price.
    • It was also held that availability of an essential commodity to the common man, at a fair price, must rank higher than any other consideration.
    • The Essential Commodities Act is enlisted under the Ninth Schedule of the Constitution. This does not, however, mean it is outside the scope of judicial review.

    4. EC Act is no exception

    • The Ninth Schedule came under scrutiny after the landmark IR Coelho, 2007 judgement.
    • The Supreme Court said the laws inserted in it after April 24, 1973 — the day the Kesavananda Bharti verdict was pronounced — are also open to judicial review if they are violative of the basic structure of the Constitution.
    • Farmers may approach the Supreme Court if they feel laws such as the Essential Commodities Act violate their fundamental rights under Articles 14, 19, 21 or 32.

    5. Questions over the amendment

    • The ordinance does not expressly define ‘extraordinary circumstances’, which ‘may’ include war, famine, extraordinary price rise and natural calamities of a grave nature.
    • Even in extraordinary circumstances, the government only ‘may’ choose to exercise regulation.
    • Such legislative ambiguity makes one question the entire exercise of introducing this particular provision.

    6. Farmers stake are still at risk

    • Drastic changes such as the removal of stock limits and exemption to exporters, traders and value chain participants may not help farmers directly.
    • Big corporates and MNC may prefer to stock up their quota at the time of harvest when prices are low and, thus, would not need to buy from farmers when prices rise.
    • If farmers decide to retain produce for later, prices may not go up or the private sector may not enter the market to purchase.

    Conclusion

    • India no longer faces food shortage problems, according to the Economic Survey, 2020.
    • What is seemingly ignored, however, is the population of India increased to 1.3 billion in 2020 from 360 million in 1951.
    • There are more mouths to feed and the responsibility of ensuring food security to the masses cannot be shunned.
    • Sights of migrants scraping for morsels of food during the COVID-19 crisis continue to haunt.
    • Our policies, thus, must ensure sustainable farm growth taking into consideration factors like climate change, land holdings, consumer capacity and farmers’ interests.

    Original article:

    https://www.downtoearth.org.in/blog/governance/essential-commodities-amendment-ordinance-a-strong-ec-act-is-still-needed-72540

  • No medical examination for Trans Persons

    After facing flak from the transgender community, the Centre has done away with the requirement of a medical examination for trans persons applying for a certificate of identity in its latest draft rules framed under the Transgender Persons (Protection of Rights) Act, 2019.

    Practice question for mains:

    Q.What are the salient features of the Transgender Persons (Protection of Rights) Act, 2019? Also, discuss the loopholes.

    What are the new rules?

    • The draft of the Transgender Persons (Protection of Rights) Rules, 2020, published stated that a District Magistrate would issue a transgender identity certificate and card based on an affidavit by the applicant, but without any medical examination.

    Issue with the earlier draft

    • An earlier draft of the rules had mandated a report from a psychologist along with the affidavit for the application.
    • The transgender rights movement had opposed this, as it was seen as going against a trans person’s right to self-identification, which was upheld by the Supreme Court in 2014.

    Change of gender is permissible

    • In case of change of gender, the application for new identification would require a certificate from the medical superintendent or chief medical officer of the medical institution where the applicant the surgery.
    • For this, the Centre has proposed a series of welfare schemes, including making at least one hospital in each State equipped to provide safe and free gender-affirming surgery and counselling and hormone replacement therapy among others.

    Back2Basics: The 2014 Judgement on Trans-persons Rights

    • The Supreme Court in 2014 recognized transgenders as the third gender in a landmark ruling, saying it was addressing a “human rights issue”.
    • The ruling came after it heard a PIL filed by National Legal Services Authority (Nalsa) demanding equal rights.
    • The judgements said that non-recognition of gender identity amounts to discrimination under Article 15, which prohibits discrimination on the basis of sex.
    • The spirit of the constitution is to provide equal opportunity to every citizen to grow and attain their potential, irrespective of caste, religion or gender said justices K.S. Radhakrishnan and A.K. Sikri in their ruling.
    • Self-identification as man or woman, irrespective of sexual reassignment surgery, was now protected by law.
    • The judges said rights such as the right to vote, own property, marry and to “claim a formal identity” would be made available “more meaningfully” to the transgender community as a result of the ruling.

    Transgender Persons (Protection of Rights) Bill, 2019

    The Parliament passed the Transgender Persons (Protection of Rights) Bill, 2019.

    Key Features

    • Definition of a transgender person: The Bill defines a transgender person as one whose gender does not match the gender assigned at birth. It includes transmen and trans-women, persons with intersex variations, gender-queers, and persons with socio-cultural identities, such as kinnar and hijra.
    • Certificate of identity: A transgender person may make an application to the District Magistrate for a certificate of identity, indicating the gender as ‘transgender’.
    • Prohibition against discrimination: The Bill prohibits discrimination against a transgender person, including denial of service or unfair treatment in relation to:
      • Education, employment, healthcare.
      • Access to or enjoyment of goods, facilities, opportunities available to the public.
      • Right to movement, right to reside, rent, or otherwise occupy property.
      • Opportunity to hold public or private office.
      • Access to a government or private establishment in whose care or custody a transgender person is.
    • Health care
      • The Bill also seeks to provide rights of health facilities to transgender persons including separate HIV surveillance centres, and sex reassignment surgeries.
      • It also states that the government shall review medical curriculum to address health issues of transgender persons, and provide comprehensive medical insurance schemes for them.
    • It calls for establishing a National Council for Transgender persons (NCT).
    • Punishment: It states that the offences against transgender persons will attract imprisonment between six months and two years, in addition to a fine.

  • [pib] Draft Electricity Act (Amendment) Bill, 2020

    The Ministry of Power has issued a draft proposal for amendment of Electricity Act, 2003 in the form of the draft Electricity Act (Amendment) Bill, 2020.

    Draft Electricity Act (Amendment) Bill 2020

    Major amendments proposed in the Electricity Act are as follows:

    Viability of DISCOMs

    • Cost reflective Tariff: To eliminate the tendency of some Commissions to provide for regulatory assets, it is being provided that the Commissions shall determine tariffs that are reflective of  cost so as to enable Discoms to recover their costs.
    • Direct Benefit Transfer: It is proposed that tariff be determined by Commissions without taking into account the subsidy, which will be given directly by the government to the consumers.

    Sanctity of Contracts

    • Establishment of Electricity Contract Enforcement Authority:  Such an authority headed by a retired Judge of the High Court is proposed to be set-up with powers of the Civil Court to enforce performance of contracts related to purchasing or sale or transmission of power between a generating, distribution or transmission companies.
    • Establishment of adequate Payment Security Mechanism for scheduling of electricity: It is proposed to empower Load Dispatch Centres to oversee the establishment of adequate payment security mechanism before scheduling dispatch of electricity, as per contracts.

    Strengthening the regulatory regime

    • Strengthening of the Appellate Tribunal (APTEL): It proposed to increase the strength of APTEL to seven apart from the Chairperson so that multiple benches can be set-up to facilitate quick disposal of cases.
    • Doing away with multiple Selection Committees: It is proposed to have one Selection Committee for selection of Chairpersons and Members of the Central and State Commissions and uniform qualifications for appointments of Chairperson and Members.
    • Penalties: In order to ensure compliance of the provisions of the Electricity Act and orders of the Commission, section 142 and section 146 of the Electricity Act are proposed to be amended to provide for higher penalties.

    Renewable and Hydro Energy

    • National Renewable Energy Policy: It is proposed to provide for a policy document for the development and promotion of generation of electricity from renewable sources of energy. It is also proposed that a minimum percentage of purchase of electricity from hydro sources of energy is to be specified by the Commissions.
    • Penalties: It is being further proposed to levy penalties for non-fulfilment of obligation to buy electricity from renewable and/or hydro sources of energy.

    Miscellaneous

    • Cross border trade in Electricity: Provisions have been added to facilitate and develop trade in electricity with other countries.
    • Franchisees and Distribution sub licensees: It is proposed to provide that the Distribution Companies, if they so desire, may engage Franchisees or Sub-Distribution Licensees to distribute electricity on its behalf in a particular area within its area of supply. However, it will be the DISCOM which shall be the licensee, and therefore, ultimately responsible for ensuring quality distribution of electricity in its area of supply.

  • What is Finance Bill?

    The Parliament has passed the Finance Bill 2020 with 40 amendments without any discussion.

    Highlights of the Bill

    • Among the important amendments included was one enabling the government to raise additional excise duty on petrol by up to Rs 18 per litre and diesel by up to Rs 12 per litre when required.
    • Amendments enabling the taxation of NRIs’ India-controlled income above Rs 15 lakh, and another extending the DDT exemption to REITs and Infrastructure Investment trusts were passed.
    • The Bill also changes the definition of ‘Resident’, as stipulated under the Income Tax Act.
    • Presently, a person is considered a resident of India, i.e. their global income is taxable in India if they are in the country for more than 182 days a year. This has now been reduced to 120 days.
    • The amendments also include provisions for levying TDS of 1 per cent on e-commerce transactions.

    What is a Finance Bill?

    • As per Article 110 of the Constitution, the Finance Bill is a Money Bill.
    • The Finance Bill is a part of the Union Budget, stipulating all the legal amendments required for the changes in taxation proposed by the Finance Minister.
    • This Bill encompasses all amendments required in various laws pertaining to tax, in accordance with the tax proposals made in the Union Budget.
    • The Finance Bill, as a Money Bill, needs to be passed by the Lok Sabha — the lower house of the Parliament. Post the Lok Sabha’s approval, the Finance Bill becomes Finance Act.

    Difference between a Money Bill and the Finance Bill

    1) Money Bill

    • A Money Bill has to be introduced in the Lok Sabha as per Section 110 of the Constitution. Then, it is transmitted to the Rajya Sabha for its recommendations.
    • The Rajya Sabha has to return the Bill with recommendations in 14 days.
    • However, the Lok Sabha can reject all or some of the recommendations.

    2) Finance Bill

    • In a general sense, any Bill that relates to revenue or expenditure is a Financial Bill.
    • The Finance Bill is introduced in Lok Sabha.
    • Rajya Sabha can recommend amendments in the bill. However, the bill has to be passed by the Parliament within 75 days of introduction.

    >Types of Finance Bills

    Type I

    • Financial Bill Cat-1 is a bill which contains any of the matters specified in Article 110 but does not exclusively deal with such matters.
    • For example- a bill which contains a taxation clause, but does not deal solely with taxation under Article 117 (1), has two features in common with a money bill.
    1. It cannot be introduced in the Rajya Sabha.
    2. It can only be introduced in Lok Sabha with the prior recommendation of the President.(Similarities)
    • But has one feature uncommon that is, not being a Money Bill, the Rajya Sabha has the same power to reject or amend such Financial Bill subject to limitation.

    Type II

    • It is a finance bill which merely involves expenditure and does not include any of the matters specified in Article 110.
    • It is an Ordinary Bill and may be initiated in either House and the Rajya Sabha has full power to reject or ament it.
    • It is thus apparent that all Money Bills are Financial Bills but all Financial Bills are not Money Bills.

    Who decides the Bill is a Finance Bill?

    • The Speaker of the Lok Sabha is authorised to decide whether the Bill is a Money Bill or not.
    • Also, the Speaker’s decision shall be deemed to be final.

    Why Finance Bill is needed?

    • The Union Budget proposes many tax changes for the upcoming financial year, even if not all of those proposed changes find a mention in the Finance Minister’s Budget speech.
    • These proposed changes pertain to several existing laws dealing with various taxes in the country.
    • The Finance Bill seeks to insert amendments into all those laws concerned, without having to bring out a separate amendment law for each of those Acts.
    • For instance, a Union Budget’s proposed tax changes may require amending the various sections of the Income Tax law, Stamp Act, Money Laundering law, etc.
    • The Finance Bill overrides and makes changes in the existing laws wherever required.

    What changes can be made via Finance Bill?

    • The most awaited changes in the tax proposals in the Union Budget usually pertain to personal income tax.
    • For taxpayers across the country, the most awaited moment is when the Finance Minister’s speech announces an increase in minimum income threshold, or declares any changes in income tax slabs to make it less costly, or other exemptions.
    • In addition, there might be changes in the rules, procedures, and deadlines for filing tax returns or the payment of tax itself.
    • For instance, there might be a change in the amount of penalty for missing the deadline. Those proposed changes would typically need to be brought in via amending the Income Tax Act.
    • Among other changes, the FM may propose in the Union Budget with regard to the rates or processes for payment or administration of stamp duty levied on various instruments.
    • Such a change would need to be brought in via an amendment to the Stamp Act.
    • Since the introduction of GST, there is no amendment to indirect taxes in the Union Budget, since that is under the purview of the GST Council.