[The Big Picture] Farmers back in focus : Why has the discourse changed?

Summary:

• In the past, over 20 years, ever since the economic liberalisation process began, the political discourse had turned away from rural issues to the urban and middle class concerns. The political parties have increasingly realised the importance of middle class as a vote bank and even in elections one could see the efforts to woo them. Many people had felt that due to this shift rural and farmer related issues had taken a back seat. Meanwhile in the last few years great efforts have been put in to bring in the new land rehabilitation law. UPA government in 2013 had brought this law with consensus. The new government which has proposed some amendments has sought to break the consensus.

• Some experts say that politicisation of the issue is going to hurt the farmers’ cause rather than helping them. This land issue has brought all the opposition together. The land acquisition act of 1894 was created with the purpose of facilitating acquisition by the government of privately held land for public purposes. Under the colonial LAA, private interest, rather than public purpose, dictated the land acquisition process. People affected by land acquisition received a pittance by way of compensation.

• Opposition parties in the parliament are opposing the Land Acquisition Bill in the present form and are demanding some changes. They say that the bill is Anti farmer. Coming under such huge pressure, the government had brought in some changes. But the stalemate over the issue still continues. The methodology that is being used to bring in the changes is also being criticised.

• The opposition has also alleged that the government has killed the spirit of the original Bill by doing away with the provision of seeking a social impact assessment and the requirement to get the prior consent of 70% of land owners before the acquisition of agricultural land. The new bill aims to relax some of the provisions in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 passed by the previous Congress-led UPA.

Source: RajyaSabha TV

[The Big Picture] Land Bill : Can amended version stand scrutiny?

Summary:

The confrontation and controversy over the land acquisition bill continues despite the amended version having been passed by the Lok Sabha. The ordinance brought in by the new government which had amended several provisions of the law enacted in 2013 by the UPA government had faced stiff resistance. Some of the clauses including the one related to Social Impact Assessment had been removed in the ordinance. However, the present government brought in 9 amendments in the Bill before getting it passed in the Lok Sabha. However, the Bill may again face resistance in the Rajya Sabha.

Changes introduced in the Bill are:

• Land shall be acquired up to 1 km on both sides of designated railway lines or roads for industrial corridor.

• Government shall undertake a survey of wasteland and arid land and maintain a record.

• A provision is included in the Bill for providing employment to project affected families.

• Hearings to be held in districts where land acquisition takes place.

• Courts won’t need government nod to take cognisance of offence under CrPC.

• ‘Five year’ clause for completion of project on acquired land will be augmented and amended by the length of the project. No acquisition will be transferred to private persons.

• Under section 33 compulsory employment clause shall be inserted.

• Land acquired for Hospitals, Educational Institutions and other Social Projects will not come under definition of Industrial Corridor.

• Government to ensure before notification land acquired would be bare minimum required for a project.

The changes are in addition to the earlier amendments moved through an ordinance where the government had added five sectors (defence, rural infra, affordable housing, industrial corridors, infra and social infra projects including PPP) to a list that would not require owners’ consent while acquiring land as well as exempted them from submitting a social impact assessment (SIA) and removal of restriction on acquisition of multi-crop lands for these sectors. The last social infra projects including PPP have been removed from the exemption list.

The changes have managed to appease the allies to some extent, but questions remain whether the opposition is willing to relent as most of them walked out during the vote in the Lok Sabha. In the Rajya Sabha however it is a different story as the ruling NDA does not enjoy a majority and where the amended Bill is likely to be defeated by an united opposition. The earlier changes or removal of consent clause has been termed anti-farmer, though they are definitely industry-friendly, while removal of SIA will save costs and time both. The main point is that the process should be fair to both farmers as well as the industry.

Source: RajyaSabha TV

[The Big Picture] Rape documentary : Attitudes and challenges

Summary:

• The documentary on December 2012 rape incident made by a British documentary maker has kicked up a huge storm in the country. The film which has had interview with one of the convicted persons in the case has been at the centre of the controversy. The convicted who has been awarded death sentence has justified his act and has put the blame on the Victim. A Delhi court has restrained the broadcast of this documentary in India. Many questions have cropped following this controversy. One is the attitude of the people who commit such heinous crimes and also attitude towards the victims and perpetrators in the society. Questions about whether such documents should be made or permitted to be made are also being discussed. The larger question is whether such documentaries help in educating the society against such heinous crimes.

• Experts say that since the case is pending in the court, the views of the convicts should not be broadcasted. Usually, either the jail authorities or the courts provide the permission to the people who wish to meet the convicts in the jail. This case is peculiar because here a reference letter was brought from the Union Home Ministry seeking the permission to meet the convict. But the filmmaker has been defending herself saying that such documentaries should be allowed since they educate the people against such heinous crimes.

• This is not the first time that anybody or any convict has spoken in such a manner. Many conservative groups, some politicians and even some religious heads have, in the past, blamed the victims in such incidents. But this case has received much attention from the public. The court has not totally banned the film but has restrained it.

• Our criminal justice system needs basic reforms. Fast track courts should be set up to deal with such kind of cases. Police reforms are needed to prevent such crimes. The defence lawyer, who has been defending the convicts, has also spoken in a negative and very harsh manner. He has completely put the blame on the victim. Hence, it can be said that Rape is not just a law and order problem, it is also a social problem.

Source: RajyaSabha TV

[The Big Picture] Budget 2015 : Implications for Social Sector

Summary:

• There is a general feeling that under the Budget the allocations made to the social sector coming under various ministries have been inadequate and even much less than the allocations made last year. The centre has however defended its move by saying that higher devolution of tax revenues to the states as suggested by the 14th finance commission would fill the gap. But, the critics say that even such higher devolution would not solve the problem. States spend 95% of their collections on salaries and other expenditures. The net additional resources transferred to the States, including States’ share of taxes and duties, non-Plan grants and loans, Central assistance to State plans, assistance for Central and Centrally-sponsored schemes, is only Rs.64,000 crore in 2015-16.

• It is also true that 95% of the budget comes with a Preset because of the commitments like salaries, defence expenditure, interest repayments etc. Hence, unless a directional change is made, the centre is left out with very little resources. The present government had some advantages created because of fall in the prices of crude oil. To some extent the government has resisted the temptation on being Populist. Some initiatives like MUDRA bank are widely welcomed.

• The Budget is strong on the social sector side as it moves from Jan Dhan to Jan Suraksha and a functional social security system for all Indians. There is a 22% reduction in allocation for Sarva Shiksha Abhiyan (SSA) over last year. The trend of lower allocation is in line with the near universal enrolment achieved at primary level. However, the increased focus on enhancing quality of education to address the poor learning levels of students is not evident from the allocations.Even the Health sector has not received much attention.

Source: RajyaSabha TV

India’s World – Democratic Crisis in Maldives

Summary:

• The arrest of opposition leader and the former President has triggered a fresh crisis in the Maldives. Opposition parties together have started a movement called save the Constitution movement. The former president, Nasheed, has been arrested on the charge of terrorism for illegally ordering the detention of a Judge. If convicted, the former President has to be in Jail for up to 15 years putting pate to all his political ambitions. The capital city Male has been witnessing many night marches by the supporters of the former President. The Government has failed to control the situation politically.

• Maldives had previously denied India’s claim that it held discussions with Indian officials regarding former President, who sought refuge at the Indian High Commission here to evade arrest, saying it cannot interfere with the independence of the judiciary.

• In 2008, Nasheed, became the first democratically elected leader of the Maldives, defeating Maumoon Abdul Gayoom, who had been dictator for 30 years. In January 2012, he ordered the detention of Criminal Court judge Abdulla Mohamed for allegedly obstructing the police, ordering illegal probes, and accepting bribes to release certain criminals. The arrest triggered protests, following which, in February 2012, Nasheed resigned. He claimed he was forced to step down after soldiers and police mutinied, but his successor, Mohamed Waheed, said Nasheed had left on his own.

• A political crisis in the Maldives will deepen unless parties hold emergency talks. The Maldives is a major tourist attraction, but political unrest has dented its image as a peaceful island paradise in recent years. A large number of Indian population resides in Maldives. Indians are the second largest expatriate community in the Maldives with approximate strength of around 26,000. Indian expatriate community consists of workers as well as professionals like doctors, teachers, accountants, managers, engineers, nurses and technicians etc. Hence, immediate intervention of the Indian government is being sought.

[The Big Picture] Rail Budget : Is it on new tracks?

Summary:

• The first railway budget of the new government and the new railway minister was presented recently. The budget tries to turn around the railways, which is reeling under losses and many other problems now. The ambitious projections, including 8.5 lac crore investments in the next five years, have received mixed responses. Announcing of new railways, which was the hallmark of the railway budgets so far, was however missing in this budget. There is also no passenger fare increase and there are only very few freight increases. The focus of the Budget has been on to complete the earlier announced projects.

• It is also true that introduction of new trains need not necessarily be announced in the Budget. They can be announced anytime depending upon the requirements. This is also true with respect to ticket fares. They can also be increased at any time. The Budget is being appreciated by the experts. It is a budget that is at once pragmatic and visionary. It is one that has the potential to be transformational—by increasing capacity and improving technology on the supply side, improving quality of service on the demand side, and focusing on transparency and efficiency on the operational side.

• Since Railways is a corporate entity and corporate undertaking which requires a budget every year as part of a corporate plan. Previous railway budgets followed populous trend and did not have any business plan in them. The challenge before the railways minister is to immediately fill the financial gap by attracting the investors. The railway minister has also said that railway colonies and staff would be taken care, and this is a welcome step.

• The rail budget envisages an investment plan of Rs.8.5 trillion over the next five years. If successful, this could have a multiplier effect on everything from the fortunes of steel companies to the country’s ability to attract foreign interest in railways and boost the government’s ambitious Make in India programme. The budget sets out a five-year action plan that is based on the principle that fundamental to Railways’ turnaround is enhancing its capacity and generating the resources to fund it.

• The budget aims to channelize most of the PPP participation for improving its freight business. It has been losing traffic to roads and will focus on the construction of feeder routes to the dedicated freight corridor and set up a Transport Logistics Corporation of India to develop user facilities and provide end-to-end logistics solutions. Freight rates were increased by an average 3% across commodities. The budget also mentions a review of the wagon leasing scheme, special freight train operator scheme, private freight terminal scheme and liberalized wagon investment scheme to make them more liberal and attractive for the private sector. All these have been longstanding demands of the industry. To succeed in PPP model the railways has to have clear demarcation of jobs that they take up.

Source: RajyaSabha TV

[The Big Picture] Land Acquisition Bill : What is the opposition?

Summary:

• Opposition parties in the parliament are opposing the Land Acquisition Bill in the present form and are demanding some changes. They say that the bill is Anti farmer. Coming under such huge pressure, the government has finally agreed to amend the bill and bring in some changes. But the stalemate over the issue still continues. The methodology that is being used to bring in the changes is also being criticised.

• The allies of the BJP have also joined opposition parties in resisting the introduction of the contentious land acquisition amendment bill in Parliament. Analysts say the backlash over the bill could stonewall the PM’s efforts to get reforms through this budget session, impeding big-ticket projects worth thousands of crores that have been stuck for want of land. But the government has been defending itself by saying that the bill is pro-poor and pro-farmer.

• The opposition has also alleged that the government has killed the spirit of the original Bill by doing away with the provision of seeking a social impact assessment and the requirement to get the prior consent of 70% of land owners before the acquisition of agricultural land. The new bill aims to relax some of the provisions in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 passed by the previous Congress-led UPA.

Source: RajyaSabha TV

[The Big Picture] President’s address : What’s the vision?

Summary:

• The address of the President of India at a joint session at the beginning of the year is a well established convention and ritual. However, this year’s address is significant as it is a first full fledged budget session of the new government. The President address spells out the achievements of the government in the past year and what it seeks to do in the coming year.

• This address brings out the broad contours on how India can achieve 8% growth from next year onwards. It even brings out the strong commitment for equitable and inclusive growth. Agriculture has received greater importance. It has indicated some strong macroeconomic changes. 

• Hence, this vision of the government is being appreciated by experts. The President at the opening of the budget session of Parliament said that the government was committed to developing India in a way that lifts up everyone in the country’s economically diverse population. 

• Some say that the speech also reflects the conflict of interests and conflicts of opinion within the party and the within the Sang Parivar. This address also reflects the concern which is there for humiliating defeat which the BJP faced in the recent elections. 

• This is felt so because in this speech there is an attempt by the government to please everyone without giving any concrete decisions.

• The speech also touched upon topics as varied as improving women’s safety and tackling corruption, to toilets, yoga, India’s Mars mission and legal aid reform. 

• The President said that the government was committed to providing a toilet in every school by Aug. 15 – when India celebrates its 69th Independence Day. A lack of toilets in school is one of the main reasons for the high drop-out rate of female pupils once they hit puberty.

Source: RajyaSabha TV

[The Big Picture] Swine Flu : Assuming epidemic proportions?

Summary:

• The way the Swine flu or H1N1 VIRUS is spreading across India, has become a serious cause for concern. Over 670 people have died so far and 10000 affected. The worst hit states are Rajasthan with 191 deaths, 155 deaths in Gujarat and 90 deaths in Madhya Pradesh so far. Some other states like Delhi, UP, Haryana and Punjab are also affected by the Virus. This year’s toll is the highest since

• 2008 when the virus was found and spread from the US to other parts of the world including India.

• This virus now seems to be assuming pandemic proportions.

• Experts call this one as a seasonal and contagious disease. This is also airborne disease. The intensity is increased in winter and it decreases in summer. Since Northern states had prolonged winter this year, the disease had some greater impacts. When patients come late for treatment it is difficult to treat them. 

• Vulnerable section includes people above 60, children below 5, pregnant women, heavy smokers, diabetic people, People with transplants and people having cardio problems.

• The district hospitals and state medical colleges are prepared to handle such worst diseases. With frontline/ primary health workers providing the support majority of the cases can be treated at home. 

• Middle level health care centres and colleges need institutional support to fight such diseases. With right approach the disease can be prevented.

• Some of the reasons for the spread: (1) Government and media wake up late. (2) Lack of awareness. (3) No campaigns.

• It is also being said that since the disease was known, government should have bothered about creating awareness about the disease. The medicines are costly too. 1 to 2% of H1N1 cases are fatal.

• In Delhi deaths were low since people were aware of the disease and healthcare facilities were also good. Tamil flu medicine is used to treat the disease. It is also being said that population explosion is responsible for 50% of the problems. There also seems to be panic present even among the health workers.

• 0.29% of the GDP is allocated to the health sector in India’s health budget. 

• 30% of the budget is unspent and in current financial year the budget expenditure on Health has also been cut. 

• There is also a notion that infectious diseases are treated only in government hospitals and is a state burden.

• There is a need for private sectors to step in. Apart from budgetary support, institutional strengthening is necessary. 

• Focus should be increased at the state level and district level. Both the public and private sector should come together to help the government and work together.

• Government has to put in adult vaccination program for this disease. Enough isolations wards should be created in hospitals.

Source: RajyaSabha TV

[India’s World] Greece on collision course with EU

Summary:
The voters in Greece have handed over the power to a communist leader who leads Syriza party. The new leader has assumed power when Greece is deeply in Debt and in a debt repayment crisis. The Greek bailout expires on February 28th. By that date the political leadership in Greece and European Union have to decide whether to continue the bailout and if so whether Greece would continue to agree to the spending limits imposed by lenders. The New Greek government is committed to anti austerity measures and greater public spending. However that would amount to breaking the contract with the lenders.

Under the Macro Adjustment Programme, Greece had to compulsorily implement the following programs:

1. Fiscal reforms to generate savings, that is, austerity.
2. Structural reforms to enhance competitiveness and growth, such as privatisation of public assets and deregulation of markets including the labour market, that is, labour market flexibility.
3. Financial reforms to enhance financial stability, such as banking regulations, and bank recapitalisation and resolution mechanisms.

The feeling of nationalist pride has resulted in such a change. Experts say that Greek’s policies are now decided in Brussels and not in Athens. It is also being said that this crisis began in 1994 when the EU 15 decided to go further and expand to EU 27. Political unification without economic similarity is a big problem and the EU countries then forgot this. The problem now has been aggravated in Greece because of the 2008 recession. Few other European countries may face similar problems in the near future.

There is also a concern that the public popular measures announced by the new government would push the country into a deeper economic crisis. And this crisis would affect all the European Union member countries. Greek Debt is not a private debt but it is a government debt. If this muddle continues the Greek economy would collapse.

Since its inception, the new government has been asking for debt write-off. But the Eurozone countries are not supporting the country. Greek at this point of time is virtually isolated. If Greece exits Eurozone and European Union it will have major political and economic implications on Europe.

Source: RajyaSabha TV

[The Big Picture] PM’s message on religious tolerance

Summary:

• The atmosphere of religious intolerance which has seen a sharp rise in the last several months has been a serious cause for concern in the country. This has led to a situation where it was even impinging upon the functioning of the parliament as it was witnessed in the last session. Recently, the PM of India told the country that he would act strongly against any communal violence. The PM’s promise to ensure complete freedom of faith and that everyone has undeniable right to retain or adopt any religion of their choice has been welcomed widely. This unequivocal assurance has been looked forward to by the country for sometimes now. This is expected to maintain harmonious environment in the country.

• The Prime Minister said equal respect for all faiths had long been a part of India’s ethos. Swami Vivekananda said we believe not only in universal toleration but we accept all religions as true. The tradition of welcoming, respecting and honouring all faiths is as old as India itself. The PM also said that India is the land of Gautam Buddha and Mahatma Gandhi and it was in the DNA of every Indian not to accept violence against any religion. His remark on religious tolerance is also being seen as an assurance to the minorities in general and government’s outreach to Christians in particular in the wake of recent attacks on churches.

• The intolerance in India was even reflected in the international newspapers. Religion is a matter of personal faith. This is a civilizational right. The PM’s move has been welcomed by many. This is a constitutional obligation of any government too. The trust deficit has been filled up. Experts also say that in a diverse country like India such assurance messages from the government are necessary along with actions.

• Some also say that political compulsions have forced the PM to deliver such assurance messages. They also feel that the message which PM delivered seemed largely to be for international audience. The crisis should have been solved by the institutional mechanisms in the country like Police, Judiciary etc.

Source: RajyaSabha TV

[The Big Picture] Media, Activism in Conflict Zones in West Asia and Middle East

Summary:

• Conflict zones have always created conflicts for the media itself about how to cover them.

• The major conflict zones like Middle East and West Asia have stretched not only the resources but more importantly the imaginations of the media in covering such things.

• Media’s role has been crucial and controversial sometimes.

• There have been dilemmas for the media where some have taken an activists role, in contrast to the view of media as a passive and neutral reflections of existing social and political world.

• The advent of social media and its increasing usage in these conflicting zones has added a new dimension to this.

• The advent of social media has diversified the dimension of the media.

• Each media defines a conflict in their own way and hence things are not so clear sometimes.

• There is rethinking required in the firmament. There is enough space for mainstream media to contribute in an effective manner to the society.

• Relationship between the state and media has always been symbiotic relationship.

• We should not limit activism to the act of protesting. Activism is sensibility and is also diversified.

• Activism as far as the media is concerned is inevitable.

• Experts say that Critical thinking is activism.

• There is a strong case for public service media in India. And also is a strong case for transparency and accountability of the corporate media.

• Accountability to the citizens of the country is required from the media.

Source: RajyaSabha TV

[The Big Picture] Vacancies in Key Posts : What is the impact?

Summary:

• For some time now concerns are being expressed in several quarters about the vacancies in key posts in government institutions. Like Chief Information Commissioner, Central Vigilance Commissioner, Vigilance Commissioner, High Court judges and police department.

• The post of CIC has been vacant since 5 weeks.

• A question also had been raised in the Supreme Court about the transparency in the methodology of shortlisting for various constitutional/non constitutional posts.

• The selection is being delayed due to 2 issues: One is the composition of the selection committee. Second is the procedure for shortlisting the eligible candidate.

• There is considerable opacity in shortlisting of the eligible candidates.

• It is being said that complacency in the government is the reason for all these delays.

• Whatever might be the reason, the onus is on the government to quickly fill these posts.

• All these institutions are required for oversight, vigilance and scrutiny. Hence, strengthening of these institutions is necessary.

• These vacancies also create workload. And hence the justice will be delayed.

• Some leaders say that since there is no leader of the opposition, appointments to various key posts (which require the Opposition leader to be a part of the selection committee) are delayed. But, experts opine that even the leader of the largest party in opposition could fill the post of Opposition Leader in the selection committee.

Source: RajyaSabha TV

[The Big Picture] Defying Election Commission : How to handle it?

Summary:

• Some of the influential leaders have always been defying the election commission’s Code of Conduct and its orders.

• This is also said to be a corrupt practice and violation of law.

• National parties are not paying much attention on this.

• The best solution is to place the responsibility on political parties. Civil society can only play a complimentary role.

• Model Code of Conduct has been adopted by political parties.

• There are 3 main stakeholders in this process; one, Election Commission; second, the political parties; third, the people who are going to vote. All three have to play role to maintain the order.

• These are also the defiance and violation of Representation of People act.

• Election commission should have some judicial powers to take direct action during the times of elections on certain issues.

• This is the time for the people of India to say NO to communal and non-secular politics. The entire country must rise as one.

• It is clear that Election Commission has not been very effective in dealing with such cases. And hence, there is a need to empower the Election Commission to deal with such cases.

Source: RajyaSabha TV

[The Big Picture] Al Qaeda Vs IS : Can it pose a threat to India?

Summary:

• For years the Al-qaeda has operated in many parts of the world with its biggest strike in America among others in the last decade.

• Meanwhile the breakaway group of Al-qaeda -the Islamic state- has been indulging in deadly activities in Iraq and Syria. It has challenged its parent organization.

• The recently released video by al-qaeda has shown that it is planning to launch attacks on India and some of its neighbours.

• In India terrorism has been mainly dominated by lashkar e taiba and its various avatars.

• IS has started attracting some Indian youth.

• Real threat is the money which is attracting the youth.

• India has to have its own investigation system dedicated to investigate Islamic State’s roots in India.

• What IS has done in the recent past is said to be the creation of mobile anarchy.

• The terrorist organizations have been splitting up due to differences in ideologies.

• The IS does not seem to be a western creation.

• New modules are sprouting up to recruit new people.

• Communal disturbances and alienation in India have been attracting Terrorist organization to recruit people from India.

• The funding sources for Terrorist organizations are also keeping an eye on the marginalized sections of India.

• Marginalization and lack of inclusiveness in economic and political processes are the reasons for indulging and participating in such activities.

• Studies conducted by some security agencies have shown that radicalization in India is on the rise.

• Minority representation in the Indian Parliament is very less.

• There are home grown terror activities in India and these internal issues need to be tackled immediately. And this can prevent external forces from coming to India.

• Because of unemployment, poverty and ideologies, the youth is being attracted.

• The funding to the terrorist organization should be cut.

• Along with the measures to counter terrorism, several other things have to be looked upon to ensure that Indians don’t get attracted to these terrorist outfits.

Source: RajyaSabha TV

[The Big Picture] Modi’s US Visit : Has it heralded a new beginning?

Summary:

• The Indo -US relation which is going through a rough period needs to be restored. Prime Minister Modi’s visit is expected to improve the bilateral relationship.

• The US has also been showing some special interest in India in the recent years.

• The PM did not discuss about Geopolitics.

• The PM proposed “make in India” global initiative in US and asked the US companies to come and invest in India.

• He also expressed his willingness to make India as a link between east and the west.

• It is necessary for India to play a balanced role to tap the opportunities from both the eastern and western countries.

• The PM has been trying to instil a new confidence in corporate industries in US. And the PM has also been spreading the message of effective governance.

• There seems to be certain similarity in the political trajectory of Narendra Modi and Barack Obama. And in the American scheme of things, at least, it matters if there are personal equations.

• The US has also been modest in their estimation. They said that the deliverables are possible in 3 areas: defence and security cooperation, clean energy and climate change.

• This visit is not just about rebooting the hung relationship between the two countries but it is also about imparting a fresh focused approach.

• He also expressed India’s readiness to revive the relationship and realize the untapped potential it has got.

• After the visit of Indian PM, the investors and business community in US have found some ground for confidence.

Source: RajyaSabha TV

[The Big Picture] FDI in insurance: Will it kick-start investments?

Summary:

• The FDI in insurance sector has been raised from 26% to 49%. This proposal had been pending since 2 years.

• This proposal first came in 1998.

• The insurance sector was thrown open to private players in the year 2000.

• This move will be welcomed globally and would increase the investments in the country.

• This is something which a lot of companies outside India were waiting to happen.

• However, we have to be cautious seeing the current market situation and economic downturn. We should not be too ambitious.

• First 26% is through the automatic route and next upto 49% is through the FIPB route.

• FIPB has much diverse set of people sitting there and it is possible to take a wholesome view.

• Companies would have preferred to go through non FIPB route completely. And Companies also wanted to get the option to have controlling stake in terms of the Board of Directors and things like that. But the government is not willing to delegate such powers.

• It is the fund which foreign companies bring into India, is of special interest

• The previously set 26% cap had not attracted many companies.

• The East Asian crisis, 2007 economic crisis and European Union crisis have exposed the whole world to the kind of volatility and risks that exist in the financial sector.

• The kind of reforms that had to be undertaken, post the crisis, were actually not undertaken.

• The insurance cap will also apply to the pension sector. Hence there are risks associated with it.

• India performed reasonably well during the crisis because of the good regulatory structures in place.

• India, with 3.2% of the GDP, has one of the smallest penetration of insurance in the world.

• This proposed increase would affect the general insurance public sector companies. But some argue by saying that the problem of the public sector companies lies in the underwritten policies.

• Insurance funds are the long term funds which bring in foreign funds and provide capital to the infrastructure sector. Infrastructure sector really needs the fund for a longer period of time.

• Insurance is the sector where there is a huge solvency requirement.

• Insurance funds are basically subscriber funds.

• We should look for a more competitive environment which requires a level playing field for both Public Sector and Private Sector companies.

• There are also chances of Indian market being exposed to the risks of Global financial market due to opening up of the sector.

Source: RajyaSabha TV

[The Big Picture]Jayalalithaa Conviction: How to hasten justice?

Summary:

• The conviction of the Chief Minister of Tamil Nadu, after the case was made to drag on for 18 years, has brought to fore once again the laxity in the justice delivery system.

• The influential and wealthy dragging the case at the cost of justice has much been discussed.

• There are similar other cases which are dragging on in different Indian courts with similarly alarming regularity.

• Following a recent order of the Supreme Court that the cases against elected representatives should be completed in one year, the government is drawing a plan to hasten up the justice delivery.

• Can these proposed changes to both-the role of court and the role of police-be effective?

• The main reason for delay in cases is frequent adjournments. Another reason is transferring of cases from one state to another.

• There are many other factors which contribute in delaying the cases- like less number of judges, lack of infrastructure, lack of effective policies etc.

• It is said that our criminal justice system is on the rocks today.

• In every case, the general tendency of the accused is to seek as many adjournments as possible.

• The prevention of corruption act contemplates day to day trial but then that doesn’t take place as a matter of rule. Therefore the whole system requires overhauling.

• In our judiciary system, the accused is presumed to be innocent till he is convicted.

• Rule of law postulates that punishment follows trial and not the other way.

• Making someone accountable without giving them the freedom and autonomy to function can become disastrous.

• Police reforms are also needed to make our criminal judiciary system more efficient.

Source: RajyaSabha TV

[The Big Picture]Coal block allocation cancellations : Implications and future?

SUMMARY:

• SC has cancelled 214 of the 218 coal block allocations made since 1993.

• The apex court had held that the allocations made by the various regimes at the center since 1993 were illegal and were made arbitrarily.

• The court has also directed the companies, which were allocated coal blocks but had not operationalized, to pay compensation to the government for the loss to the exchequer.

• The findings of the CAG had said that the loss of rupees 295 per ton was caused due to the non- operation of the mines. It was also upheld by the court.

• Few companies, which are already operating, are given a time- period of 6 months to wind down their operations.

• The government had urged the court to spare 44 blocks. But the court hasn’t made any exceptions. It has upheld the transparency and has taken the judgement holistically.

• It will be a benchmark judgement which will enhance transparency in public dealing involving all the natural resources.

• This is a time for introspection for all the parties.

• This judgement provides an equal platform for all the steel companies. Earlier, the companies with captive coal blocks had an unfair advantage.

• So far as coal is concerned, the mine and minerals act says that if it is for a private company it has to be auctioned.

• SC judgement on presidential reference on natural resource allocation says that auction is not necessary in every natural resource allocation.

• But when it is being given to any private company for commercial purpose then allocating through any other methods except competitive method would fall foul of article 14 of the constitution.

• The SC in its 2G judgement held that two things are essential for competitive method. One is, Fairness between the various competitors. Second is, the people of the country, who own the resources, should get a fair compensation.

Source: RajyaSabha TV

[The Big Picture]CBI: Should it be within the ambit of RTI and Whistleblower laws?

Summary:

• As many the controversial cases the CBI has been investigating it seems to be involved in as many controversies itself.

• The CBI director is accused of meeting the persons who are friends or relatives of those accused under the cases being investigated.

• According to a former CBI director, it is not appropriate to receive the people known to accused or accused himself at the director’s residence which is the unwritten law. It is appropriate to meet such persons at the offices to avoid speculations.

• The present CBI director has defended himself by saying that it was necessary for him to meet those people to get to know whether his officers are doing the right thing or wrong thing.

• Question which arises is: Does a senior police officer need to meet the accused or his representatives to find out whether his officers are doing the right thing or not?

• CBI is now under Deptt. of Personnel, Ministry of Personnel, Pension & Public Grievances, Government of India.

• DoPT works like a secretariat of CBI but not the other way round.

• CBI has the tendency of hitting the iron when it is hot.

• CBI is an autonomous agency under the CrPC. Some sections under CrPC give autonomous powers to the investigating powers to the officers under CBI.

• Need of the hour is to remove the constraints on their functioning.

• More and more cases are being handed over to CBI by not only the central Government but also by the Supreme Court and High courts. And many posts in CBI are kept vacant. So there should be functional autonomy and the Director should be made accountable to the Courts directly.Functional autonomy include filling up of the vacant posts by the director himself.

• According to the RTI law, intelligence agencies and security agencies and organizations under schedule 2 of the RTI act are outside the ambit of RTI. But many argue that the CBI doesn’t fit into either of these categories.

• The question now is: why the CBI has been kept out of the ambit of the law as it is neither the security nor intelligence organization? CBI defends itself by saying that the RTI is impeding its investigations.

• The government to protect itself from providing information on sensitive issues like 2G scam, granted blanket protection to the CBI.

• Revelation of identity of whistleblower is not the right thing to do according to many experts.

Source: RajyaSabha TV