The Covid-19 pandemic has left its impact on all sectors of the economy but nowhere is the hurt as much as the Medium, Small and Micro Enterprises (MSMEs) of India. All anecdotal evidence available, such as the hundreds of thousands of stranded migrant workers across the country, suggests that MSMEs have been the worst casualty of lockdown.

A closer look at the anatomy of the MSME sector explains why MSMEs are so vulnerable to economic stress.

Backgrounder: India’s MSME Sector

• The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities.
• With around 63.4 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities as well as 33.4% of India’s manufacturing output.
• They have been able to provide employment to around 120 million persons and contribute around 45% of the overall exports from India.

What are MSMEs? How are they defined?

• Formally, MSMEs are defined in terms of investment in plant and machinery.

The significance of MSMEs:

The significance of MSMEs is attributable to their calibre for employment generation, low capital and technology requirement.

• They are also important for the promotion of industrial development in rural areas, use of traditional or inherited skill, use of local resources, mobilization of resources and exportability of products.
• According to the estimates of the Ministry of MSME, Government of India, the sector generates around 100 million jobs through over 46 million units situated throughout the geographical expanse of the country.
• With 38% contribution to the nation’s GDP and 40% and 45% share of the overall exports and manufacturing output, respectively, it is easy to comprehend the salience of the role they play in social and economic restructuring of India.
• Besides the wide range of services provided by the sector, the sector is engaged in the manufacturing of over 6,000 products ranging from traditional to hi-tech items.

Why the MSME sector is important specially for India?

• The Indian MSME sector provides maximum opportunities for both self-employment and wage-employment outside the agricultural sector.
• It contributes to building an inclusive and sustainable society in innumerable ways through the creation of non-farm livelihood at low cost, balanced regional development, gender and social balance, environmentally sustainable development, etc.

How many MSMEs does India have, who owns them?

• According to the latest available (2018-19) Annual Report of Department of MSMEs, there are 6.34 crore MSMEs in the country.
• Around 51 per cent of these are situated in rural India.
• Together, they employ a little over 11 crore people but 55 per cent of the employment happens in the urban MSMEs.

• The numbers suggest that, on average, less than two people are employed per MSME.
• At one level that gives a picture of how small these really are. But a breakup of all MSMEs into micro, small and medium categories is even more revealing.

What kind of problems do MSMEs in India face?

Given the shape and form of MSMEs, it is not hard to envisage the kind of problems they would face.

• No/Low Formal registration: To begin with, most of them are not registered anywhere. A big reason for this is that they are just too small. But, as it is clear in a time of crisis, it also constrains a government’s ability to help them.
• Away from Tax norms: GST has its threshold and most micro-enterprises do not qualify. Being out of the formal network, they do not have to maintain accounts, pay taxes or adhere to regulatory norms etc. This brings down their costs.
• Lack of Financial buffer: According to a 2018 report by the International Finance Corporation (part of the World Bank), the formal banking system supplies less than one-third (or about Rs 11 lakh crore) of the credit MSME credit need that it can potentially fund (Chart 5).

• They don’t have the buffers of the bigger firms or access to cheap capital to help them tide over this period.
• Bad credit history:

The other big issue plaguing the sector is the delays in payments to MSMEs — be it from their buyers or things likes GST refunds etc. A key reason why banks dither from extending loans to MSMEs is the high ratio of bad loans (Chart 6).

Other problems

• Long receivables cycles make a mess of working capital management.
• Limited access to trained labour, technical progress and management support limit their growth.
• Other common problems faced by small enterprises are related to the availability of technology, infrastructure and managerial competence, and limitations posed by labour laws, taxation policy, market uncertainty and imperfect competition.

Opportunity areas for MSMEs in India

Telecommunications

• Domestic manufacturing of low-cost mobile phones, handsets, and devices;
• Manufacturing of telecom networking equipment, including routers and switches;
• Manufacture of base transceiver station equipment;
• Mobile customer data analytics – services oriented toward analytical solutions; and
• Development of value-added services

Healthcare

• Manufacturing of personal protective equipment (PPE) and face masks, as the COVID-19 pandemic has fundamentally changed social behaviour, public health and hospital needs, and created new demand;
• Manufacturing of low-cost medical devices, and medical accessories such as surgical gloves, scrubs, and syringes;
• Low-cost surgical procedures to reduce the cost of healthcare;
• Telemedicine; and
• Diagnostic labs.

Electronics

• Domestic manufacturing of low-cost consumer electronics, consumer durables;
• Nano-electronics and microelectronics;
• Electronic Systems Design and Manufacturing including semiconductor design, electronic components design and hi-tech manufacturing under India’s ‘National Electronics Mission; and
• Strategic electronics, as the government is keen on encouraging the domestic manufacturing of products needed by the security forces.

Others

• Other areas that offer opportunities for MSMEs include information technology, pharmaceutical, chemical, automotive, renewables, gems and jewellery, textile, and food and agriculture.

Part II of the BI will be published shortly…………

• The Vizag Gas Leak was an industrial accident that occurred at a chemical plant in R. R. Venkatapuram village near Gopalapatnam on the outskirts of Visakhapatnam, Andhra Pradesh on the early morning of 7 May 2020.
• The source of the leak was a styrene plant owned by South Korean electronics giant LG.
• The leaked gas spread over a radius of about 3 kilometres affecting the nearby areas and villages. The incident had a death toll was of 12 and more than 1,000 people were affected.

What is Styrene?

• It is a flammable liquid that is used in the manufacturing of polystyrene plastics, fibre glass, rubber, and latex.
• Styrene is also found in vehicle exhaust, cigarette smoke, and in natural foods like fruits and vegetables.
• According to The Manufacture, Storage and Import of Hazardous Chemicals Rules, 1989, styrene is classified as a toxic and hazardous chemical.

What happens when exposed to styrene?

• A short-term exposure to the substance can result in respiratory problems, irritation in the eyes, irritation in the mucous membrane, and gastrointestinal issues.
• And long-term exposure could drastically affect the central nervous system and lead to other related problems like peripheral neuropathy.
• It is, likely, a carcinogenic substance that can react with oxygen in the air to mutate into styrene dioxide, a substance that is more lethal.
• However, there is no sufficient evidence despite several epidemiology studies indicating there may be an association between styrene exposure and an increased risk of leukaemia and lymphoma.

What are the symptoms?

• Symptoms include headache, hearing loss, fatigue, weakness, difficulty in concentrating etc.
• Animal studies have reported effects on the nervous system, liver, kidney, and eye and nasal irritation from inhalation exposure to styrene.

How bad is the situation in Visakhapatnam?

• It is yet unclear whether the deaths are due to direct exposure to styrene gas or one of its byproducts.
• However, hundreds of people including many children were admitted to hospitals.
• The cases are high as the gas leak was only detected at 3 am in the morning, meaning several crucial hours have been lost till safety precautions were taken.
• More fatally, the gas was leaked while people were fast asleep.

What caused the leak?

• Styrene monomer was used at the manufacturing plant to produce expandable plastics.
• The storage requirement of styrene monomer strictly mentions that it has to be below 17 degrees Celsius.
• There was a temporary and partial shutdown of the plant because of the nationwide lockdown.
• The leak occurred as a result of styrene gas not being kept at the appropriate temperature.
• This caused a pressure build-up in the storage chamber that contained styrene and caused the valve to break, resulting in the gas leakage.

Is it under control?

• The leak has been plugged and NDRF teams moved into the five affected villages and have started opening the houses to find out if anyone was stranded inside.
• The Covid-19 preparedness helped a lot as dozens of ambulances with oxygen cylinders and ventilators were readily available.
• The spread of the gas depends on wind speeds. So far it is estimated that areas within a five-kilometre radius have been affected.

What are the safeguards against chemical disasters in India?

The law in India provides protection to victims of such chemical disasters. Here’s a look at some of these provisions:

Scars from the Bhopal Gas Tragedy

• At the time of the Bhopal gas tragedy, the Indian Penal Code (IPC) was the only relevant law specifying criminal liability for such incidents.
• The CBI had initially charged the accused in the case under Section 304 (culpable homicide not amounting to murder) of the Indian Penal Code (IPC).
• Soon after the tragedy, which had killed 2,000 people, the government passed a series of laws regulating the environment and prescribing and specifying safeguards and penalties.

Some of these laws were:

1) Bhopal Gas Leak (Processing of Claims) Act, 1985, which gives powers to the central government to secure the claims arising out of or connected with the Bhopal gas tragedy. Under the provisions of this Act, such claims are dealt with speedily and equitably.

2) The Environment Protection Act, 1986, which gives powers to the central government to undertake measures for improving the environment and set standards and inspect industrial units.

3) The Public Liability Insurance Act, 1991, which is insurance meant to provide relief to persons affected by accidents that occur while handling hazardous substances.

4) The National Environment Appellate Authority Act, 1997, under which the National Environment Appellate Authority can hear appeals regarding the restriction of areas in which any industries, operations or processes or class of industries, operations or processes shall not be carried out or shall be carried out subject to certain safeguards under the Environment (Protection) Act, 1986.

5) National Green Tribunal, 2010, provides for the establishment of a tribunal for effective and expeditious disposal of cases related to environmental protection and conservation of forests.

Trial of such cases

• The legal gains made during the Bhopal Gas Leak, and subsequently with the Delhi Oleum Leakage case, held the principle of absolute enterprise liability for hazardous substances.
• That is, any manufacturer of hazardous or inherently injurious substance was to be held liable.
• Any incident similar to the Bhopal gas tragedy will be tried in the National Green Tribunal and most likely under the provisions of the Environment (Protection) Act, 1986.
• If an offence is committed by a company, every person directly in charge and responsible will be deemed guilty, unless he proves that the offence was committed without his/her knowledge or that he had exercised all due diligence to prevent the commission of such an offence.

India’s handling of industrial disasters suffers from systemic apathy. To respond to the currently unfolding Visakhapatnam Gas Leak effectively and sensitively, it must reflect on and learn from its inadequate handling of the Bhopal Gas Tragedy. 

Why the gas leak should set off alarm bells?

Gruesome pictures and videos emerged, showing people having collapsed by the wayside.  It was reminiscent of the Bhopal gas tragedy of 1984, considered one of the world’s worst industrial disasters.

1) No lessons learnt from Bhopal

• The judicial processing of the Bhopal Gas Tragedy took approximately 26 years to yield a penalty that was not only disproportionate but was in itself a result of a great systemic disservice to those involved.
• The present regulation imposes no-fault liability on the owner of hazardous substance and requires the owner to compensate victims of accident irrespective of any neglect or default.
• For this, the owner is required to take out an insurance policy covering potential liability from any accident.
• The government’s failure in protecting the legal rights of the gas victims is evident from the fact that years after the disaster, the registration of claimants is far from complete.
• This, however, hindered the ability of survivors to negotiate their own settlements on their own terms.
• Additionally, by the time the final judgement had been passed, most of the claimants had died.

2) Invisibility of victims

• As a result of the disorganized response on part of the state machinery, a mass evacuation programme, referred to as “Operation Faith,” was launched in Bhopal.
• This meant that a significant proportion of the affected population was moved away from the city, making it difficult and almost impossible for following up on health repercussions of the disaster.
• This invisibilisation of the survivors has become a strategy consistently employed by the state to sweep the enormity of the systemic failure that resulted in the Bhopal disaster, as well as that which succeeded it.
• Instead of working through the problem of providing medicare, both the state and city governments instead redirected their efforts towards wiping the problem away from the space.

3) Lax regulation continues

• Usually, in times of crises, governments tighten safety rules and regulations.
• But as panic over the economy mounts, governments could end up travelling in the opposite direction.
• The environment ministry has been giving clearances to industrial proposals through video conference for “seamless economic growth” during Covid-19.
• Lax regimes could become a haven for hazardous industries and sweatshops.

4) Operational security neglected

• Industries have failed to overhaul its working system urgently, especially that is tasked with safety practices.
• There are no regulatory measures to ensure safety at two ends—on-site and off-site.
• The on-site one involves all the safety of the in-house personnel and workers, and the off-site deals with ensuring the safety and well being of the habitats in the surrounding areas as well as the surrounding environment.

5) Multiple Laws with no enforcing agencies

• One of the most basic and overlooked aspects in the current time is the proper regulatory oversight.
• The regulators, like SPCBs, are limited in number.
• Add to it their inability to mount comprehensive and stringent oversight due to budgetary constraints.

6) Poor checks and monitoring

• Improper inspection and inspection report and show cause notices are not released in the public domain by state pollution control boards.
• The MoEF&CC gives the authorisation for the hazardous chemical storage, but inspection is done by factory inspector and by SPCB in case of isolated storage i.e. outside the industry.
• This is very absurd for safety considerations. Inspections are not done properly and are more of “having a look” rather than being a proper verification as per inspection checklist.
• This overtime perpetuates negligence by the safety personnel leading to accidents.

7) Low or no awareness

• Having a robust disaster management plan (DMP) is a pre-requisite for every industry. However, the availability of DMP does not suffice the purpose.
• What is needed most is to communicate the same with the local stakeholders. In the case of the Bhopal gas tragedy, we experienced how such miscommunication can lead to higher human casualties.
• The plant did have the DMP but it never informed the residents around the plant on the measures to be taken in case of any accident.
• However, looking at the current accident at Vizag, it seems that no lesson has been learnt from past accidents.

8) Judiciary has failed to relieve

• The gas leak is just yet another in the long list of such accidents that have happened until now and will happen in the future.
• So far, the NGT has issued notices to the Centre, LG Polymers India Pvt, Central Pollution Control Board and others in addition to directing LG Polymers India Pvt to pay Rs 50 crore an interim amount for damage to life.
• There are many other tragedies in the past, where the owners were not held accountable for the damage to life and were let out on bail.

9) Yet no fixation of accountability

• Fixing accountability for an accident or negligent actions is another aspect of the legal system that we often ignore.
• A suit is usually against a company involved in an accident. But, in such a situation, we let free the company employed individuals – responsible for negligent behaviour.
• In some cases, the industry does suspend or terminate their employment but that’s the maximum that it goes to.

Possible solutions

Regulatory: We do not have a strong regulatory body to ensure proper enforcement of laws and regulations related to industrial accidents. The regulators, like SPCBs,  needs to be given a revamp.

Monitoring and Reporting: Improving monitoring both inside and outside the industry and designing a proper protocol for reporting should be undertaken. Relevance must also be given to monitoring and prompt reporting of sudden events that can lead to industrial accidents.

Operational safety: In order to avert the rising number of industrial accidents, a more rational approach is required in terms of implementing the existing policies and practices properly. There are many guidelines and protocols for industrial safety that have been designed based on the outlines given in various acts and rules.

Ensuring thorough capacity building of the employees and management staff – Continually cultivate a safety standard among employees and management staff. Training employees about the importance of following safety measures as often as possible is very crucial. Supplemental training in body mechanics can reduce strain injuries, and keep employees safe during lifting and moving.

Ensuring a strict code and oversight on not taking shortcuts – Accidents happen when employees skip steps to complete a job ahead of schedule. Make sure all instructions are clear and organized to prevent undue mishaps in the workplace.

Employing the use of Failure Mode Effects Analysis (FMEA) – FMEA is a structured approach to discovering potential failures that may exist within the design of a product or process. There are various modes by which a process can fail and are called Failure modes that result in undesirable effects. However, FMEA is designed to identify, prioritize and limit these failure modes.

Installation of a proper alert system – This is one of the most essential components of the immediate response protocol and can really help prevent higher rates of fatalities and/or damage.

NDMA guidelines for Industrial chemical disasters

National chemical disaster management guidelines drawn up by the National Disaster Management Authority (NDMA) are as follows:

• The NDMA guidelines for chemical safety call for harmonization of regulations like land use policy, standardization of national codes and practices and stringent enforcement of safety practices through audits and an inspection system.
• Industrial units using hazardous chemicals as raw materials will be required to have onsite and offsite emergency plans in place and put them to test by organizing regular mock drills.
• Given that coordination between the individual units and the local administration is crucial to the management of chemical disasters, the guidelines spell out a key role for the latter.
• This includes strengthening of state and district mechanisms for accurate and timely dissemination of warning of potentially hazardous gas leaks and chemical spills, GIS-based technologies, and ensuring testing of emergency plans through mock exercises, besides creating awareness and education.
• The guidelines call upon the industries handling hazardous chemicals to share resources and enter into mutual aid agreements.
• According to the NDMA, medical preparedness including creation of trained medical first responders, facilities for fast detection and decontamination, mobile hospitals/mobile teams and hospital disaster management plans need to be amalgamated with the preventive strategies to safeguard industrial processes and procedures.

Way Forward

Ensuring public safety, a comprehensive safety audit of all the industries should be taken up and a Standard Operating Procedure should be enforced.

• Preventing these tragedies is not a one man’s act. It will take the combined effort of competent authorities, the private sector, and society to prevent tragic environmental events from happening.
• Apart from the regular inspections, one must maintain safety processes internally to help prevent and/or reduce the frequency of natural gas leaks.
• Most of all, it is important to adhere to environmental norms. Taking environmental safety and public health risks seriously and promoting do-no-harm industrial development can make a big difference.
• There is a clear need to promote clean development that innovatively addresses potential negative impacts on the environment.
• To prevent future environmental disasters, all sectors could also do more to integrate environmental emergency preparedness and response activities into strategies and sustainable development programs.
• Some measures include: Developing policies to ensure that industries operate in accordance with technical and safety standards and allocating resources for risk assessment and monitoring.
• These measures could make a big difference in people’s health and wellbeing and avoid future tragedies.

References

https://www.civilsdaily.com/news/vizag-gas-leak-what-is-styrene-gas/

https://economictimes.indiatimes.com/news/politics-and-nation/how-visakhapatnam-gas-leak-sets-off-alarm-bells-in-more-ways-than-one/articleshow/75648391.cms

https://www.epw.in/engage/article/gas-leaks-industrial-disasters-reflecting-indias

Back2Basics: The Bhopal Gas Tragedy

• It occurred on the cold wintry night in the early hours of 3 December, 1984.
• At around midnight, the chemical reaction started in the Union Carbide (India) Limited factory that culminated in the leakage of deadly Methyl Isocyanate (MIC) gas from one of the tanks of the factory.
• As a result, a cloud of gas gradually started descending and enveloping the city in its lethal folds. And the city and lakes turned into a gas chamber.
• In the tragedy around 3000 lives of innocent people were lost and thousands and thousands of people were physically impaired or affected in several forms.

What is Methyl Isocyanate?

• Methyl Isocyanate (MIC) is a chemical that is used in the manufacture of polyurethane foam, pesticides, and plastics.
• It is handled in liquid form which can be easily burned and explosive. It evaporates quickly in the air and has a strong odour.
• Its molecular formula is CH3NCO or C2H3NO and its molecular weight is approx. 57.05 g/mol.
• It is used in the production of pesticides, polyurethane foam, and plastics.

During the Second World War, when the Luftwaffe (German air force) was wreaking havoc over London with its incessant bombing attacks, the British Prime Minister Winston Churchill took cognizance of the heavy casualties and economic devastation. While he was briefed on the casualties and economic collapse, he asked, “Are the courts functioning?” When told that the judges were dispensing justice as normal, Churchill replied, “Thank God. If the courts are working, nothing can go wrong.”

Context

• Covid-19 has brought almost the entire world to a near-standstill, and India’s justice delivery system — rarely known for its speed even in the best of times — is no different.
• Official data shows that while the institution of new cases, both in the higher judiciary and subordinate judiciary, has come down since the beginning of the nationwide lockdown on 25 March, the disposal rate has also been severely affected due to the forced closure of courts.
• The judiciary has come under immense pressure to innovate during this pandemic so as to balance public health concerns with access to justice.

Background

• Our Judicial system has been the nation’s moral conscience, speaking truth to political power, upholding the rights of citizens, mediating Centre-state conflicts, providing justice to the rich and poor alike, and on several momentous occasions, saving democracy itself.
• Despite its achievements, a gap between the ideal and reality has been becoming clear over the years.
• The justice del­ivery is slow, the appointment of judges is mired in controversy, disciplinary mechanisms scarcely work, hierarchy rather than merit is preferred, women are severely under-represented, and constitutional matters often languish in the Supreme Court for years.
• As Justice Chelameswar said in his dissent in the NJAC judgment, the courts must reform, so that they can preserve.

Inherent Issues with Indian Judiciary

The Constitution of India, through its Preamble, has guaranteed to its citizens ‘Justice’—economic, political and social. But even after 70 years of independence, achieving substantive justice for the vast majority of the citizens has remained a distant dream. In the specific area of justice delivery system, India is faced with several problems relating to large backlogs and pendency of cases.

Despite the independence of the judiciary from the executive and legislative bodies, the Indian judicial system faces a lot of problems. The major issues that the system faces are:

• The pendency of cases.
• Corruption.
• Lack of transparency (particularly in the appointment of judges).
• Under trials of the accused.
• Lack of information and interaction among people and courts.

1) Pendency of cases

• India’s legal system has the largest backlog of pending cases in the world – as many as 30 million pending cases. Of them, over four million are High Court cases, 65,000 Supreme Court cases.
• This number is continuously increasing and this itself shows the inadequacy of the legal system.
• And also due to this backlog, most of the prisoners in India’s prisons are detainees awaiting trial.
• It is also reported that in Mumbai, India’s financial hub, the courts are burdened with age-old land disputes, which act as a hurdle in the city’s industrial development.

What led to the under-performance of Indian Judiciary?

The issue of heavy arrears pending in the various courts of the country has been a matter of concern since the time of independence. The primary factors contributing to docket explosion and arrears as highlighted by Justice Malimath Committee report are as follows:

• Population explosion
• Litigation explosion
• Hasty and imperfect drafting of legislation
• Plurality and accumulation of appeals (Multiple appeals for the same issue)
• Inadequacy of judge strength
• Failure to provide adequate forums of appeal against quasi-judicial orders
• Lack of priority for disposal of old cases (due to the improper constitution of benches)

2) Corruption in judiciary

• Like any other institution of the Government, the Indian judicial system is also allegedly corrupt.
• There is no system of accountability. The media also do not give a clear picture on account of the fear of contempt.

3) Lack of transparency

• Another problem facing the Indian judicial system is the lack of transparency. It is seen that the Right to Information (RTI) Act is totally out of the ambit of the legal system.
• Thus, in the functioning of the judiciary, the substantial issues like the quality of justice and accountability are not known properly.
• In the recent past, there have been many debates regarding the Collegium system and the new system that the government wanted to introduce for the appointment of judges, the NJAC.

4) Hardships of the undertrials

• Right to a speedy trial is an integral part of the principles of fair trial and is fundamental to the international human rights discourse.
• In Indian jails, most of the prisoners are undertrials, which are confined to the jails until their case comes to a definite conclusion.
• In most of the cases, they end up spending more time in the jail than the actual term that might have had been awarded to them had the case been decided on a time and, assuming, against them.
• Plus, the expenses and pain and agony of defending themselves in courts is worse than serving the actual sentence. Undertrials are not guilty till convicted.

5) No interaction with society

• It is very essential that the judiciary of any country should be an integral part of the society and its interactions with society must be made regular and relevant.
• Lack of faith in a fair and swift judicial system creates a low-trust society.
• The rule of law and trust are central to enable people in large societies, who do not personally know each other, to live together peacefully and collaborate.

Impact of Coronavirus

1) Decline in cases

Don’t go by the number of reduced cases … just imagine the scale of burden on Indian Judiciary due to reduced disposal rate!

• With only limited benches presiding over select matters daily, cases pending before constitution benches have been put on the back burner.
• In the entire month of April, 82,725 cases were filed in India’s courts, while 35,169 cases were disposed of.
• Compare this to 2019, when the average number of cases filed per month was around 14 lakh (total number of cases 1.70 crores), while the average number disposed of per month was 13.25 lakh.
• In all, there are about 3.23 crore cases pending in the 19,683 subordinate courts in the country, of which 90 lakh are civil cases and 2.32 crore are criminal cases
• The situation in the high courts’ is no better. Currently, there are over a total of about 48.16 lakh cases including civil and criminal cases.

2) The new normal of Social Distancing

• Accessibility is a core function of justice – the quality of adjudication in a courtroom is of little utility to potential litigants if they cannot access it.
• All courts, including the Supreme Court, high courts and district courts, have been operating in a highly restricted manner.
• Most courts have already decided to persist with the restricted functioning until at least 17 May.

3) Judicial appointments stalled

• The process of appointment of judges too has been impacted by Covid-19 and the resulting lockdown.
• Even before Covid-19, over 35 per cent posts in high courts were vacant — out of 1,079 sanctioned posts, 201 permanent ones and 184 additional judges’ positions were yet to be filled.
• But now, the appointment of over 120 high court judges is pending with the Supreme Court Collegium, while 50-odd fresh recommendations have been made by the various high court collegiums.

4) Quasi-judicial bodies have stopped working

• What is also perplexing is how proceedings in over a dozen tribunals have come to a grinding halt during the lockdown despite these judicial bodies being equipped with video conferencing infrastructure.
• The central zonal bench of the National Green Tribunal had been hearing matters through video conferencing for nearly two years but stopped functioning since the lockdown.
• The public will have to pay a huge price for this stalemate as the NGT had stayed work on some key government-funded projects.
• With proceedings now on hold, cost escalation for these projects would eventually be passed on to common citizens.

Need for a change

The pandemic has been changing many aspects of our life and forcing us to innovate or embrace the novel changes. The judiciary is not immune to this change. The time is ripe for the adoption and popularization of online court. But there were several attempts at the adoption of technology in the working of courts even before the pandemic. Time has now come to adopt these technological frameworks on a wider scale.

Alternatives to conventional courts in practice:

• The Online courts where the judge is physically present in the courtroom but the lawyer or litigant is not.
• This is the present arrangement, except that now the courtroom is the residential office of the judge, due to the lockdown.
• And the Virtual courts(VC) where there is no judge, lawyer or litigant and a computer takes a decision based on the inputs of the litigant.

1) Online Courts

• Amid this pandemic, a few district judges have taken a step forward and recorded the statement of parties in cases of divorce by mutual consent.
• As of now, several such cases, including those involving NRIs, are dealt with through VC in online courts.
• Punjab and Haryana judges have gone even further ahead. The online courts record the expert evidence of doctors from PGIMER through VC.
• This has freed the doctors from time-consuming trips to the courts and has resulted in savings of several crores for the exchequer.
• The SC hearings use the VIDYO App hosted by the National Informatics Centre. Some platforms like Zoom, WhatsApp, and WebEx are being used in some high courts.

2) Virtual courts

• A virtual court is a unique contribution of the eCourts Project.
• A pilot virtual court was launched in August 2018 in Delhi for traffic offences and it has been a great success.
• Virtual courts have been successfully tried out in Delhi, Haryana, Maharashtra and Tamil Nadu.
• The virtual court system has the potential of being upscaled and other petty offences attracting a fine such as delayed payments of local taxes or compoundable offences can also be dealt with by virtual courts.
• This will ease the burden on conventional courts and therefore must be strongly encouraged.

The Supreme Court support for video conferencing

The outbreak of coronavirus or COVID-19 in several countries including India has necessitated immediate adoption of measures to ensure social distancing to prevent transmission of the virus.

• A bench headed by CJI SA Bobde said that every high court would be authorised to determine the modalities suitable to the temporary transition to the use of video conferencing technologies.
• All measures taken by the courts, to reduce the need for the physical presence of all stakeholders within court premises and to secure the functioning of courts in consonance with social distancing guidelines and best public health practices shall be deemed to be lawful, said the bench.
• The top court directed that district courts in each state shall adopt the mode of video-conferencing prescribed by the concerned high court.
• The concerned courts shall maintain a helpline to ensure that any complaint in regard to the quality or audibility of feed shall be communicated during the proceeding or immediately after its conclusion.
• The bench directed that courts shall duly notify and make available the facilities for video-conferencing for such litigants who do not have the means or access to such facilities.
• Until appropriate rules are framed by the high courts, video conferencing shall be mainly employed for hearing arguments whether at the trial stage or at the appellate stage.

The only option lies in technology

• One way to retain access for most litigants as quarantine, self-isolation and social distancing are being implemented to avoid contracting the deadly virus, is by using technology.
• Some jurisdictions abroad have the facility to operate online courts and even telephone hearings for non-substantive issues.
• The importance of allowing technology within the judicial process is already recognised in studies conducted by Indian legal analysts.
• For instance, DAKSH’s white paper series on a next-generational justice platform moots the idea of re-calibrating the Indian judicial system through a natively digital platform.

Various issues with these courts

• Unfamiliarity with the medium of communication is the major issue. Judges are simply not used to consciously facing a camera generally and in particular while hearing a case.
• Similarly, lawyers find it difficult to comfortably argue while seated.
• Some technical problems in conducting online hearings have also surfaced. The bandwidth is not adequate or stable enough. The picture sometimes breaks or gets frozen and the voice often cracks.
• Consultations are also a problem: Lawyers occasionally need to consult their client or the instructing advocate; judges also need to consult each other during a hearing.

Lack of a unified portal

• The Supreme Court initially instructed litigants to use an app called Vidyo. There have been instances of using Whatsapp, Google and Zoom video conferencing tools.
• These apps raise obvious security and sovereignty questions when used for judicial proceedings.
• A public function as critical as adjudication cannot rely on third-party proprietary software.
• The National Informatics Centre will have to create a platform that includes features such as videoconferencing and e-filing.
• This will benefit not just the judiciary but all other components of the justice system – such as the police, prisons and lawyers – and provide more people more justice more speedily.

Conclusion

• As a matter of fact, the present system of justice is totally out of place and out of time and tune with democratic procedures and norms that please only a certain section of the society with vested interests.
• Therefore, there is an immediate need to restructure the entire judicial system to make it answerable to the needs of a democratic, progressive society.
• The judiciary has a golden opportunity to envisage a justice delivery system that could function unhindered at all levels during any emergency.
• The online court is one of a number of related justice modernization needs. It may cost several billion and look a massive sum to commit at a time of austerity, but if it succeeds it will save several more billions.
• This saving will be made by eliminating many of the costs of running a paper-based system using rented premises which look more like shop windows and craft workshops than actual courtrooms.

The inherent issues can be addressed with some simple measures like:

• For pendency, time-limits should be prescribed for all cases based on priorities. So setting time-standards is essential and it will vary for different cases, and also for different courts depending on their disposal-capacity. Alternative disputes resolution  (ADR) mechanisms should be promoted for out of court settlements.
• To imbibe transparency, a thorough understanding of the principle of independence of the judiciary and ensuring its accountability is the sole prerogative of the Supreme Court itself. The judiciary should come up with its own solution for transparent functioning and judicial appointments.
• To make trials speedy, the judiciary must scrutinize the sensitivity of a particular case before taking up for hearing. Fast track courts must be established for varieties of cases.

Way Forward

• Necessity is the mother of invention – once Covid-19 is contained, the judiciary will be presented with an opportunity to reform the justice system to better serve a public that will desperately need it.
• The legislative underpinning of the courts’ modernization should begin boldly and immediately.
• First and foremost, it needs to massively increase the number of leaders and innovators who are addressing issues of law and justice.
• The coronavirus crisis has encouraged courts around the world to find innovative ways of delivering justice. Courts and their users must ‘seize the moment’.
• We urgently need a set of new laws and procedural rules for the online courts.
• We have to create more awareness and understanding and also create platforms and spaces that invite and enable changemakers to come together, dialogue and collaborate to create effective solutions.
• We must use technology and new media to create a citizens movement by equipping citizens with the knowledge, resources and tools to put pressure on the system to change.
• The rapidly evolving field of “legal tech” enables us to use emerging technologies like digitization, process automation, data and analytics, AI to completely reimagine how a 21st century, the citizen-centric legal system should work.

References

https://theprint.in/judiciary/how-lockdown-has-hit-judiciary-in-numbers-april-cases-fall-to-82k-from-14-lakh-avg-in-2019/413666/

https://indianexpress.com/article/opinion/columns/india-coronavirus-parliament-judiciary-lockdown-6367368/

https://theprint.in/opinion/corona-is-a-wake-up-call-for-indian-courts-they-arent-equipped-to-function-in-a-crisis/389224/

https://www.bloombergquint.com/law-and-policy/how-indian-courts-are-adapting-in-the-times-of-covid-19

https://scroll.in/article/958271/the-coronavirus-pandemic-is-an-unfortunate-opportunity-for-indias-judicial-system-to-modernise

https://indiankanoon.org/doc/32424520/

https://www.magzter.com/article/News/Outlook/Higher-Resolution

As India embarks on its journey of 5 trillion Economy, the importance of Infrastructure cannot be undermined. PM Modi in his Independence Day speech 2019 had highlighted this aspect by allocating ₹100 lakh crore for infrastructure projects over the next 5 years.

The latest move- ‘National Infrastructure Pipeline (NIP)’. NIP will help to augment infrastructure and create jobs in the country. The government task force on NIP in its report has projected total investment of Rs 111 lakh crore in infra projects over 5 years.

The emphasis would be on ease of living: safe drinking water, access to clean and affordable energy, healthcare for all, modern railway stations, airports, bus terminals and world-class educational institutes.

What is the National Infrastructure Pipeline (NIP)?

• NIP includes economic and social infrastructure projects.
• During the fiscal years, 2020 to 2025, sectors such as Energy (24%), Roads (19%), Urban (16%), and Railways (13%) will amount to around 70% of the projected capital expenditure in infrastructure in India.
• It has outlined plans to invest more than ₹102 lakh crore on infrastructure projects by 2024-25, with the Centre, States and the private sector to share the capital expenditure in a 39:39:22 formula.

Why the infra sector is given more emphasis these days?

• Slowdown due to the pandemic is a good time to catch up on infrastructure capacity and increase the expenditure.
• Infrastructure spending is a critical component of the fiscal stimulus as it has multiplier effects on the economy and job creation.
• Quality infrastructure is important not only for faster economic growth but also to ensure inclusive growth.
• Lack of adequate infrastructure not only holds a lack of economic development, but it also causes additional costs in terms of time, effort and money of the people for accessing essential social services.

Key benefits of NIP

• Economic: Well-planned NIP will enable more infra projects, grow businesses, create jobs, improve ease of living, and provide equitable access to infrastructure for all, making growth more inclusive.
• Government: Well-developed infrastructure enhances the level of economic activity, creates additional fiscal space by improving the revenue base of the government, and ensures the quality of expenditure focused on productive areas.
• Developers: Provides a better view of project supply, provides time to be better prepared for project bidding, reduces aggressive bids/ failure in project delivery, ensures enhanced access to sources of finance as a result of increased investor confidence.
• Banks/financial institutions (F1s)/investors: Builds investor confidence as identified projects are likely to be better prepared, exposures less likely to suffer stress given active project monitoring, thereby less likelihood of NPAs.

Projects included

• The report contains recommendations on general and sector reforms relating to key infrastructure sectors for implementation by the Centre and states.
• Sectors such as energy (24%), roads (18%), urban (17%) and railways (12%) amount to around 71% of the projected investments.
• The projects will also be spread across sectors such as irrigation, mobility, education, health, water and the digital sector.

Major constraints in implementation

The major implementation constraints that will be faced possibly in future are:

• Availability of funds for financing large projects
• Lengthy processes in land acquisition and payment of compensation
• Environmental concerns
• Time and cost overruns due to delays in project implementation and procedural
• Delays and lesser traffic growth than expected to increase the riskiness of the projects
• Stalled or languishing projects and a shortfall in funds for maintenance

Highlights of the task forces’ report

Components of Infrastructure Vision 2025

The Taskforce has proposed certain goals, strategies and standards under its Infrastructure Vision 2025. Following are the components of the vision.

(a) Affordable and clean energy

• Ensuring 24×7 power availability;
• Reduce pollution through green and clean renewable energy and environment-friendly fuel for transportation.

(b) Digital Services

• Providing access for all.
• 100% population coverage for telecom and high-quality broadband services for socio-economic empowerment of every citizen;
• Digital payments and e-governance Infrastructure for delivery of banking and public services

(c) Quality Education:

• World-class educational institutes for teaching and research, technology-driven learning meeting GER target of 35 by 2025 as per the draft National Education Policy, 2019.

(d) Convenient and efficient transportation and logistics

• Roads: Enhanced road connectivity to remotest areas and trunk connectivity through expressways, major economic corridors, strategic areas and tourist destinations. Extensive charging and on-road traction infrastructure for electric vehicles.
• Rail: World-class stations and fully integrated rail network with inter-modal connectivity to remote regions and close to nil accidents.
• Air: Airport and related infrastructure to enable international and regional connectivity so as to achieve passenger and cargo traffic on the vision of NCAP 2016. Air connectivity to all Tier II and most Tier III cities.
• Ports: Port and Waterway infrastructure focused on reducing logistics time and cost for foreign and domestic trade as per the Sagarmala National Perspective Plan 2016.
• Metro-connectivity: Urban mobility MRTS and bus connectivity within 800 metres of homes in more than 50 cities. High standards of living for citizens by providing metro connectivity in at least 25 cities.

(e) Housing and water supply for all

• Housing for all by 2022 PMAY negligible slum population.
• All households to have piped water meeting national standards by 2024.
• Wastewater recycling and treatment.

(f) Agriculture infrastructure:

• Increased irrigation and micro-irrigation coverage;
• Integrated agro logistics systems from farm gate to end consumers storage, processing and packing, transportation, market and digital infrastructure for agriculture produce.

(g) Good health and well being

• Superior healthcare facilities, electronic health records infrastructure.
• Superior accessible primary, secondary and tertiary healthcare infrastructure facilities across India to meet NHP 2017 goals.
• Medical para medical education infrastructure meeting manpower needs by 2020 and CHVs by 2025 as per IPHS norms.

Major area of focus

• According to the report, India would need to spend $4.51 trillion on infrastructure by 2030 to become a $5 trillion economy by 2025.
• Of the Rs 111 lakh crore, the plan suggests spending 24 per cent in the energy sector, 18 per cent in roads, 17 per cent in urban infrastructure, 12 per cent in railways, and the rest on airports, agriculture and food processing infrastructure, industrial infrastructure, among others.
• Healthcare, clubbed with the social sector, ranks alongside ports and airports.
• The biggest allocations go to power, roads, railways, irrigation, urban and rural infrastructure.
• The report allocated Rs 3.93 lakh crore to social infrastructure, including higher and school education, health and family welfare, sports and tourism. That’s higher than Rs 3.56 lakh crore proposed in the interim report.

Here are other highlights of the report:

Financing

• The report suggests forming a steering committee in the Department of Economic Affairs for raising financial resources for infrastructure projects
• It recommends setting up a well-capitalized credit enhancement fund to improve the rating of projects to easy investments by institutional investors in infrastructure through capital market instruments
• Channeling resources from the pension and insurance sector into the infrastructure bond market
• Strengthening the municipal bond market in India
• Developing infrastructure financing institution IIFCL as a development finance institution in consultation with the Reserve Bank of India
• The monetisation of assets by government departments and public sector entities to reduce the debt burden and invest in asset creation

Monitoring

• Creation of a tool to monitor projects under development
• A steering committee of lenders and equity investors to monitor compliances, resource mobilization and design
• An empowered committee for clearance of large projects

Health sector

It suggests:

• Scaling up India’s medical devices and diagnostic equipment manufacturing under “Make in India” initiative
• Exploring public-private partnership in medical education
• Use of tele-consultation which will link tertiary care institutions to district and sub-district hospitals which provide secondary care facilities

Various issues with the report

Issue of Finance

• The report of the Task Force recommends diversifying financing sources, along with strengthening the existing means.
• The report also suggested for efficient monitoring of project execution and enhancing the execution capacity of private sector participants.
• It said that necessary steps or initiatives need to be undertaken in order to solve the challenge of stressed assets faced by banks by encouraging usage of innovative mechanisms such as loan securitization, InvITs, etc and increased participation of Infrastructure debt funds (IDFs), DFIs, among others.

Neglecting health sector

• While the Covid-19 pandemic has bared inadequacies in India’s healthcare, a task force preparing a fresh infrastructure spending road map has lowered allocation to the sector from what is recommended in the interim report.
• It suggested spending of Rs 1.51 lakh crore in five years ending March 2025 on health and family welfare, according to the final report submitted on April 29.
• That’s lower than 1.5 per cent of the overall Rs 111 lakh crore infrastructure spending target.
• The task force’s allocations contrast with its suggestions on improving healthcare infrastructure at the time when COVID-19 is uprooting various inadequacies.

No measure to address Economic slowdown

• With India already grappling with an economic slowdown and job losses, COVID-19 has struck at the most inopportune time.
• The countrywide lock down had to be neutralized with some sort of stimulus package. This is where the task force report remains silent.

Conclusion

• Infrastructure development is the key to economic growth and well-being of the country’s people, as it will propel economic growth, improve quality of life contribute to GDP nationally.
• Capacity creation and expansion in important segments like roads and highways, power, railways, renewable sector, ports, airports, metros etc, is a must for delivering impressive results.
• The current buoyancy has not just confined to urban areas but also extended to rural areas and improving the quality of life for the masses.
• Over the period, formalization of the economy has taken place and any growth now onwards once NIP is in place will be more sustainable, rather than a boom-and-bust process.
• Therefore, massive infrastructure development through NIP is a sure way of achieving the government’s $5 trillion economy target.
• This is will give a boost to several sectors, create new jobs directly and indirectly, and eventually boost the commercial market, thereby propelling the country’s economic growth.

Way Forward

• A country’s level of human and economic development is closely related to its levels of achievement in physical and social infrastructure.
• While physical infrastructure is an important determinant of domestic production, good social infrastructure is vital for human development as well as economic progress through better educated, better skilled, and healthier citizens.
• Striking a balance between the two is the real challenge for any government in action.
• Translating the government’s vision to become a USD 5 trillion economy by 2023-24 may be a formidable task, but is achievable.
• This should, in the long term address all the issues which are either way hurdled with infrastructural inadequacies.

References

https://www.civilsdaily.com/news/national-infrastructure-pipeline-nip/

https://www.bloombergquint.com/economy-finance/taskforce-on-infrastructure-cuts-healthcare-allocation-in-final-report

164.100.117.97 › userfiles › DEA IPF NIP Report Vol 1

The outbreak and spread of COVID-19 has created multiple challenges for the entire world. Apart from primary challenges like containing the spread of the virus and treating infected patients, there are rising political issues such as the blame game between US and China, crumbling role of WHO and questions about the future world order. Amid this entire crisis, India has been playing an important role as reflected in the praises being heaped on our PM from worldwide, paving way for stronger future partnerships. This also creates an opportunity for India’s so-called “medical diplomacy” which is already growing at an unprecedented scale.

Background

• The spread of COVID at lightning speed has exposed the void in collective leadership at the global level.
• The contemporary global order and institutions have proved to be hegemonic exercises meant to deal with isolated political and military crises but failed to serve humanity at large.
• To top it all, the worst nativist tendencies of the global leaders are visible in the face of this major crisis.
• The fact that UNSC took so long to meet (that too inconclusively) to discuss the pandemic is a ringing testimony to the UN’s insignificance.
• In this global chaos, India’s handling of the pandemic and its bilateral moves, shows India’s mettle to awaken the conscience of the superpowers and catalyse collective global action.

The World on its knees (credits COVID-19)

Fall of WHO

• WHO is under criticism for giving China too much benefit of the doubt at the beginning of this pandemic.
• At the center of public outrage, WHO is now being mimicked as “Chinese Health Organisation” even as it is at the forefront of fighting its worldwide spread.
• The largest contributor to WHO’s finance, the US has halted its funding making WHO a paper organisation.

The Trumplomacy

• The US decision to suspend contributions to the WHO is an extraordinary act of moral abdication and international vandalism at a time when the world desperately needs to find means of working together.
• From unnecessary trade war to an increasingly desperate coronavirus war, US and China are trapped in a blame game with no easy way out.
• Weakened economically and politically after COVID-19, U.S.’s capacity to play a critical role in world affairs is diminishing.

EU woes

• The EU, the most progressive post-national regional arrangement, stood clueless when the virus spread like wildfire in Europe.
• Its member states turned inward for solutions: self-help, not regional coordination, was their first instinct.
• These regional institutions haven’t fared any better in the past as well.
• Europe, in the short and medium-term, will prove incapable of defining and defending its common interests, let alone having any influence in world affairs.

Problems in West Asia

• In West Asia, both Saudi Arabia and Iran are set to face difficult times.
• The oil price meltdown will aggravate an already difficult situation across the region.
• There may be no victors, but Israel may be one country that is in a position to exploit this situation to its advantage.
• Israel could exploit this situation to strengthen its control over Palestine (benefiting from its dependency) and crush the Hamas.

Looming global depression

• Neoliberal economic globalization may face a major beating in the wake of the pandemic and signs of the global recession are eminent.
• The pre-existing structural weakness of the global order will further feed states’ protectionist tendencies fueled by hyper-nationalism.

The Great Strategist: China

• China is seeking to convert its ‘failure’ into a significant opportunity. This is Sino-centrism at its best, or possibly its worst for the world.

 Point in Case

• China has surprisingly accelerated its movements in the South China Sea.
• It plans using its manufacturing capability to its geo-economic advantage.
• There are enough reports of China’s intentions to acquire financial assets and stakes in banks and companies across the world amid crisis.
• Shares in HDFC: India seems to have woken up only recently to this threat after the Peoples’ Bank of China acquired a 1% stake in India’s HDFC.

Taking advantage of RCEP and Belt and Road Initiative

• Restricting hostile takeovers may not be adequate to checkmate China.
• It is poised to dominate the Regional Comprehensive Economic Partnership (RCEP).
• It will enable China to exploit market access across the Association of Southeast Asian Nations, East Asian nations, Australia and New Zealand.
• Together with its Belt and Road Initiative, China is ostensibly preparing the way for a China-centric multilateral globalization framework.

India steps in as a Leader

• India has been proactive at both the domestic level – the steps taken to tackle the crisis at home — and the diplomatic level — India’s assistance to other countries, especially in the Indian Ocean Region (IOR), amid the pandemic.
• Despite the existing domestic challenges emanating out of the pandemic, India has decided to render possible help to countries like the US, a few European, African, and Latin American countries, as well as countries in the Middle East by providing medicines and sending medical professionals.

What steps did India take?

• The first element of India’s medical diplomacy includes issuing speedy clearances for the export of the anti-malarial drug hydroxychloroquine – seen as useful in the treatment of patients suffering from the novel coronavirus – at the last count to 55 countries.
• The second element includes dispatch of Indian military doctors teams to countries like Nepal, the Maldives and Kuwait to help local administrations draw up plans to combat the spread of this pandemic.

India and IOR

1) Early evacuations

• One of the first steps taken by India was to evacuate citizens of different countries along with its own citizens from Wuhan, China, the epicentre of the first COVID-19 outbreak.
• Those evacuated as compassionate cases includes citizens from IOR countries such as Bangladesh, Myanmar, the Maldives, South Africa, and Madagascar.
• India not only evacuated these people but also quarantined them in India as a precautionary measure before sending them to their respective countries.

2) Supply of essential medicines

• India has emerged as a major supplier of medicines to different countries worldwide in the fight against COVID-19.
• As part of that effort, India was the first responder to Mauritius and Seychelles.
• Accordingly, India sent a consignment of life-saving drugs, including hydroxychloroquine, to Mauritius and Seychelles.

3) Settling the neighbourhood irritants

• In the past few months, India’s relations were strained to owe to Iran and Malaysia’s criticisms of India on CAA issue.
• However, recently India and Iran cooperated with each other in order to evacuate Indians stranded in Iran.
• Apart from this, India has sent a wheat consignment to Afghanistan through Iran’s Chabahar port.
• With respect to Malaysia, India has agreed to supply anti-malarial drugs, indicating an improvement in bilateral relations.

India and Middle-East

• While the current Indian government has been placing immense importance on promoting its “Neighborhood First” policy, it is simultaneously strengthening overall cooperation with its “extended neighbours.”
• This is where the Middle Eastern countries come to the fore.

Extending the cooperation

• India’s cooperation with this region has become more comprehensive, moving beyond the oil-energy trade to include military-security ties, maritime cooperation, strategic oil reserves, joint energy exploration projects, and mutual investments.
• India has dispatched a team of 15 doctors and healthcare professionals to assist the efforts of the Kuwaiti government in its fight against the pandemic.
• Jordan, UAE and Oman are some of the countries to whom India has supplied hydroxychloroquine (HCQ).
• Apart from the above-mentioned Arab countries, India has also provided medical-related and humanitarian assistance to Israel, which is one of its largest arms suppliers.

India and SAARC

• India has assumed leadership of the South Asian charge against COVID-19.
• India has backed to set up an emergency fund to fight the rapid spread of Covid-19 pandemic and has pledged $10 million toward this emergency fund.

India and US

• India lifted the ban on HCQ, displaying its ability to rise above politics despite Trump’s consistent politicization of COVID-19 response efforts.

The thought behind Indian Diplomacy

1) Acting in-principle with Vasudhaiva Kutumbakam

• At this crucial juncture when almost every part of the globe is engulfed by the deadly COVID-19 pandemic, India has taken a step forward by providing medical assistance to some of its international partners.
• Precisely, India has been propagating the ancient Sanskrit dictum Vasudhaiva Kutumbakam, meaning “the world is one family.”
• Such goodwill reflects the evolving nature of the Indian foreign policy, and this has gradually been acknowledged by other countries.

2) India chose collaboration over confrontation

• Crises bring out the best and worst in individuals, and the same appears to be the case for nation-states.
• While rivals China and the US engage in a high-profile war of words amidst the COVID-19 crisis, India has chosen the approach of collaboration over confrontation.
• This approach also provided India with an opportunity to address the irritants in its ties with countries, most notably Iran and Malaysia.

3) Being the global pharmacy

• India is often dubbed “the pharmacy of the world” that produces 70 per cent of the world’s HCQ.
• The Indian pharma industry is the world’s third-largest drug producer by volume and the country’s market manufactures 60 per cent of vaccines globally.

4) Addressing the ‘threat everywhere’

• Covid-19 does not respect borders – even closed ones – and its continued transmission anywhere poses a threat to health everywhere.
• If the pandemic worsens, intensive international cooperation will be required to get expertise and resources to where they are needed the most – especially as the disease takes root in impoverished countries in the Global South.

5) Occupying the vacuum generated

• The COVID-19 crisis presents an opportunity for India. This entire crisis has put the focus on China from different quarters.
• At present, more and more countries in the world have an unfavourable opinion about China.
• On the other hand, India has been nimble-footed enough to take this opportunity and build up goodwill, which could result in elevated status in the post-COVID-19 period.

Conclusion

• History teaches us that the collective action needed to address this crisis will not just emerge spontaneously – it must be built painfully, step by step, by countries that trust one another and are able to look beyond their own immediate interests.
• Indian diplomacy has been often accused as a response to the transactional discussions. However, India is making genuine sacrifices to show international solidarity and not to monger profits.
• India’s foreign policy has instilled this principle in letter and spirit and is acting accordingly because of even the smallest contribution matters.

Way ahead

• The new world order is on the way. The spread of concepts like “before corona” and “after corona” will become commonplace.
• Far-reaching changes can be anticipated in the realm of geo-economics and geopolitics.
• India is gearing up itself for the emerging challenges on various fronts.
• The effort and message are clear: India’s careful diplomacy reflects a balance between the country’s values and interests.
• The Indian act of generosity has turned the world attention towards India and is sure to open doors towards deeper ties around the world in the near future.

References

https://www.civilsdaily.com/news/covid-19-and-the-crumbling-world-order/

https://www.civilsdaily.com/burning-issue-world-health-organization-who-and-coronavirus-handling/

https://thediplomat.com/2020/04/indias-indian-ocean-diplomacy-in-the-covid-19-crisis/

https://www.thehindu.com/opinion/lead/the-deep-void-in-global-leadership/article31200881.ece

Background

• Reservation in India is a system of affirmative action by the State that provides representation for historically and currently disadvantaged groups in Indian society in education, employment and politics.
• It was envisaged to help address social disparities and economic backwardness of certain sections of the population within a few decades.
• But gradually, amendments have been made, and there is no review of the list nor has reservation come to an end. Instead, there is a demand to increase them.
• Now it is very tough for any elected government to have the political will to meet the challenges that arise from the reservation.

Reservation being an all-time contested issue is a less inevitable topic for mains. However, we can expect some of the thought triggering questions such as – “Reservation is hardly capable of striking a balance between social inclusion and merit. Critically comment. (250 W)”

OR

Essay topic like- “Meritocracy is unrealized without an egalitarian society” are ready to raid your mind.

Present context

• Recently, the Constitution Bench of the Supreme Court has held it unconstitutional to provide 100% reservation for tribal teachers in schools located in Scheduled Areas across the country.
• The Bench was answering a reference made to it in 2016 on whether 100% reservation is permissible under the Constitution.
• The principal grounds cited are mainly found in a 1992 judgment of a nine-judge Bench in Indra Sawhney vs Union of India.

Yet again in the news

• Since 1992, governments—both the Centre and the states—have been liberal in their interpretation of “extraordinary situation”, and have used various legal provisions to protect policies that breached the 50% cap.
• For instance, some states have used the Schedule IX shield to protect state laws that expanded reservation beyond 50%. (A Tamil Nadu law that provides 69 per cent reservation in the state is part of the Schedule.)
• Maharashtra recently enacted legislation to give reservation benefits to Marathas.
• On the other hand, the Centre created a 10% quota for people from economically “weaker” sections (defying the sole criteria of socio-economic backwardness).

What is the present case?

• The Supreme Court has overruled the Andhra Pradesh government’s decision in 1988 to provide a 100% reservation to Scheduled Tribes for teacher posts in Scheduled Areas.
• The notification to provide a 100% reservation to Scheduled Tribes (STs) for teacher posts in Scheduled Areas was issued by then governor of the erstwhile Andhra Pradesh.
• The Fifth Schedule of the Constitution dealing with the administration of Scheduled Areas vests the Governor with legislative and administrative powers.

Note: We shall not indulge in dicussing the pros and cons of reservations. Numerous politicians and forged bhakts are there to brainstorm them.

Why did AP bring such a provision?

• The scheduled areas are treated differently from the other areas in the country because they are inhabited by ‘aboriginals’ who are socially and economically rather backwards and special efforts need to be made to improve their condition.
• Therefore, the whole of the normal administrative machinery operating in a state is not extended to the scheduled areas.
• Then AP govt. observed that there was chronic absenteeism among teachers who did not belong to those remote areas where the schools were located.

No 100% quota permissible

• The apex court held that it is an obnoxious idea that tribals only should teach the tribals.
• Merit cannot be denied in toto by providing reservation observed the judgement.
• Citizens have equal rights, and the total exclusion of others by creating an opportunity for one class is not contemplated by the founding fathers of the Constitution of India.

Constitutionality check: ‘Failed’

• The Supreme Court concluded that reservation in the case violated Articles 14 (equality before law), 15(1) (discrimination against citizens) and 16 (equal opportunity) of the Constitution.
• The Court ruled that the Governor’s powers under para 5 of Schedule V are subject to the fundamental rights guaranteed under Part III of the Constitution.
• It observed that in this case, “there were no such extraordinary circumstances to provide a 100 per cent reservation in Scheduled Areas”.
• The court also took note of a Presidential Order issued in 1975 under Article 371-D (Special provisions for Andhra Pradesh) of the Constitution, which said employment to people in the state were limited to only their districts.

Other legal loopholes

• Paragraph 5(1) of Schedule V empowers the Governor to issue a notification directing that any central or state law may not apply to a scheduled area or shall apply to the area with modifications and exemptions.
• The then Andhra Pradesh Governor had cited this provision.
• The government order had also cited Andhra Pradesh State and Subordinate Service Rules 1996, which provides for 6 per cent reservation for Scheduled Tribes in the State.
• But the bench ruled that Para 5(1) of Schedule V does not allow modification of Rules.

Invoking Indra Sawhney judgment: The 50% Cap

• The court referred to the famous Indra Sawhney judgment (Mandal case- Indra Sawhney v. Union of India 1992), which caps reservation at 50%.
• The court held that a 100% reservation is discriminatory and impermissible.
• Among others, it recognized socially and economically backward classes as a category and recognized the validity of the 27 per cent reservation.
• The concept of ‘creamy layer’ gained currency through this judgment. Those among the OBCs who had transcended their social backwardness were to be excluded from the reservation.

Significance of the present judgement

• The verdict quashing the 100% quota is not against affirmative programmes as such, but caution against implementing them in a manner detrimental to the rest of society.
• However, the solution for drafting only members of the local tribes was not a viable solution.
• As the Bench noted, it could have come up with other incentives to ensure the attendance of teachers.
• Another aspect that the court took into account was that Andhra Pradesh has a local area system of recruitment to public services.
• Thus, the 100% quota deprived residents of the Scheduled Areas of any opportunity to apply for teaching posts.

Why so much confusion persists over ‘reservation’ after several Judgements?

• There are many other reservation-related judgements where the SC has either read down its earlier judgments or has completely side-stepped these.
• A fair share of the blame, however, must rest with the SC itself in 1994, in Ajay Kumar Singh SC ruled on reservations at the highest levels of education, which Indra Sawhney proscribes.
• For instance, SC in 2018 upheld one part of the Nagaraj judgment saying that reservations can’t be allowed to affect efficiency negatively while in another judgment.
• It is necessary to liberate the concept of efficiency from a one-sided approach which ignores the need for and the positive effects of the inclusion of diverse segments of society on the efficiency of administration.
• Unless the apex court lays down its opinion with some degree of certitude, the reservation will likely continue in perpetuity.

What is the remedy for such a situation?

• B.R. Ambedkar observed during the debate in the Constituent Assembly on the equality clause, that any reservation normally ought to be for a “minority of seats”.
• This is one of the points often urged in favour of the 50% cap imposed by the Court on the total reservation, albeit with some allowance for relaxation in special circumstances.
• It is still a matter of debate whether the ceiling has innate sanctity, but it is clear that wherever it is imperative that the cap be breached; a special case must be made for it (as TN and MH did).
• Such a debate should not divert attention from the fact that there is a continuing need for a significant quota for STs, especially those living in areas under the Fifth Schedule special dispensation.

Way Forward

• The reservation policy was introduced only for a temporary timeframe until equality reigns amongst all bases of discrimination.
• However, the policy of reservation has been continuing for over six decades now and continues to expand. Since, Reservation is necessary to provide equality, equity, and diversity in society.
• The Indra Sawhney judgement started a new era of reservation in India. But actual work of social upliftment is still incomplete.
• The present system seeks to elevate a section or decelerates another regardless of merit to bring them all on the same level.
• Still, it is the only prerogative for social upliftment of marginalized sections.
• There is a need for rationalizing the policy so that a balance can be established between social mobility and merit.

Back2Basics: What are Fifth Schedule Areas?

• The Fifth Schedule of the Constitution deals with the administration and control of scheduled areas and scheduled tribes in any state except the four states of Assam, Meghalaya, Tripura and Mizoram (ATM²).

Who can declare an area to be Scheduled Area?

• The President is empowered to declare an area to be a scheduled area.
• He can also increase or decrease its area, alter its boundary lines, rescind such designation or make fresh orders for such re-designation on an area in consultation with the governor of the state concerned.

Administration of Scheduled Areas

• The executive power of a state extends to the scheduled areas therein. But the governor has a special responsibility regarding such areas.
• The executive power of the Centre extends to giving directions to the states regarding the administration of such areas.

Role of Governor

• He has to submit a report to the President regarding the administration of such areas, annually or whenever so required by the President.
• The Governor is empowered to direct that any particular act of Parliament or the state legislature does not apply to a scheduled area or apply with specified modifications and exceptions.
• He can also make regulations for the peace and good government of a scheduled area after consulting the tribes advisory council.

The Tribes Advisory Council

• Each state having scheduled areas has to establish a tribes’ advisory council to advice on welfare and advancement of the scheduled tribes.

States having Scheduled Areas

• At present, 10 States namely Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Telangana have Fifth Schedule Areas.
• Tribal habitations in the states of Kerala, Tamil Nadu, Karnataka, West Bengal, Uttar Pradesh and Jammu & Kashmir have not been brought under the Fifth or Sixth Schedule.

Also read:

Ninth Schedule of the Indian Constitution

References

https://www.civilsdaily.com/news/no-100-quota-for-scheduled-areas/

https://theprint.in/judiciary/no-rhyme-or-reason-for-100-reservation-why-sc-quashed-2000-andhra-order-for-st-teachers/407217/

https://www.thehindu.com/opinion/editorial/no-100-quota-the-hindu-editorial-on-overzealous-reservation/article31427747.ece

Context

• Major Port Authorities Bill 2020 was recently introduced in the Lok Sabha by the Ministry of Shipping.
• The Bill aims to replace the Major Port Trusts Act, 1963.
• It seeks to provide for regulation, operation and planning of Major Ports in India and to vest the administration, control and management of such ports upon the Boards of Major Port Authorities.
• This will empower the Major Ports to perform with greater efficiency on account of full autonomy in decision making and by modernizing the institutional framework of Major Ports.

Background

Ports in India

• India is the sixteenth largest maritime country in the world, with a coastline of about 7,517 km. The Indian Government plays an important role in supporting the ports sector.
• According to the Ministry of Shipping, around 95 per cent of India’s trading by volume and 70 per cent by value is done through maritime transport
• India has 12 major and 205 notified minor and intermediate ports.
• The Indian ports and shipping industry plays a vital role in sustaining growth in the country’s trade and commerce.
• It has allowed Foreign Direct Investment (FDI) of up to 100 per cent under the automatic route for port and harbour construction and maintenance projects.
• It has also facilitated a 10-year tax holiday to enterprises that develop, maintain and operate ports, inland waterways and inland ports.

Major Port Authorities Bill, 2020

Key features of the Bill include:

Jurisdiction

• The Bill will apply to the major ports of Chennai, Cochin, Jawaharlal Nehru Port, Kandla, Kolkata, Mumbai, New Mangalore, Mormugao, Paradip, V.O. Chidambaranar, and Vishakhapatnam.

Major Port Authorities Board

• Under the 1963 Act, all major ports are managed by the respective Board of Port Trusts that have members appointed by the central government.
• The Bill provides for the creation of a Board of Major Port Authority for each major port.
• These Boards will replace the existing Port Trusts.

Composition of Board

• The Board will comprise of a Chairperson and a Deputy Chairperson, both of whom will be appointed by the central government on the recommendation of a selection committee.
• Further, it will include one member each from

(i) the respective state governments,

(ii) the Railways Ministry,

(iii) the Defence Ministry, and

(iv) the Customs Department

• The Board will also include two to four independent members, and two members representing the interests of the employees of the Major Port Authority.

Powers of the Board

• The Bill allows the Board to use its property, assets and funds as deemed fit for the development of the major port.
• The Board can also make rules on:

(i) declaring the availability of port assets for port-related activities and services,

(ii) developing infrastructure facilities such as setting up new ports, jetties, and

(iii) providing exemption or remission from payment of any charges on any goods or vessels.

Fixing of rates

• Currently, the Tariff Authority for Major Ports, established under the 1963 Act, fixes the scale of rates for assets and services available at ports.
• Under the Bill, the Board or committees appointed by the Board will determine these rates.
• They may determine rates for:

1. services that will be performed at ports,
2. the access to and usage of the port assets, and
3. different classes of goods and vessels, among others.

• Such fixing of rates will not be with retrospective effect and must be consistent with the provisions of the Competition Act, 2002, or any other laws in force, subject to certain conditions.

Financial powers of the Board

• Under the 1963 Act, the Board has to seek the prior sanction of the central government to raise any loan.
• Under the Bill, to meet its capital and working expenditure requirements, the Board may raise loans from any:
• scheduled bank or financial institution within India, or
• any financial institution outside India that is compliant with all the laws.
• However, for loans above 50% of its capital reserves, the Board will require prior sanction of the central government.

Corporate Social Responsibility

• The Bill provides that the Board may use its funds for providing social benefits.
• This includes the development of infrastructure in areas such as education, health, housing, and skill development.

Public-Private Partnership (PPP) projects

• The role of the Tariff Authority for Major Ports (TAMP) has been redefined. The Bill defines PPP projects as projects taken up through a concession contract by the Board.
• For such projects, the Board may fix the tariff for the initial bidding purposes.
• The appointed concessionaire will be free to fix the actual tariffs based on market conditions, and other conditions as may be notified.
• The revenue share in such projects will be on the basis of the specific concession agreement.

Adjudicatory Board

• The Bill provides for the constitution of an Adjudicatory Board by the central government.
• This Board will replace the existing Tariff Authority for Major Ports constituted under the 1963 Act.
• It will consist of a Presiding Officer and two members, as appointed by the central government.
• Functions of the Adjudicatory Board will include:
• certain functions being carried out by the Tariff Authority for Major Ports,
• adjudicating on disputes or claims related to rights and obligations of major ports and PPP concessionaires, and
• reviewing stressed PPP projects.

Penalties

• Under the 1963 Act, there are various penalties for contravening provisions of the Act.
• For example, (i) the penalty for setting up any structures on the harbours without permission may extend up to Rs 10,000, and (ii) the penalty for evading rates may extend up to 10 times the rates.
• Under the Bill, any person contravening any provision of the Bill or any rules or regulations will be punished with a fine of up to one lakh rupees.

Why need corporatization?

• Indian state-owned ports or major ports (12 in number) account for around 55% of maritime cargo traffic in the country.
• Currently, most major port trusts in India carry out terminal operations as well, resulting in a hybrid model of port governance.
• The involvement of the port authorities in terminal operations leads to a conflict of interest and works against objectivity.
• But, they still have to adhere to a tariff and policy regime that has its roots in the 1960s.

Significance of the Bill

• Privatized ports operate under a much more liberal regime and are under the control of state governments.
• They are operationally more efficient and are crucially developed better linkages to the hinterland to enable smooth traffic flows.
• The bill aims at decentralizing decision making and to infuse professionalism in governance of major ports.
• It would help to impart faster and transparent decision making benefiting the stakeholders and better project execution capability.
• The Bill is aimed at reorienting the governance model in central ports to the landlord port model in line with the successful global practice.
• This will also help in bringing transparency in operations of Major Ports.

References

https://pib.gov.in/newsite/PrintRelease.aspx?relid=200153.

https://www.prsindia.org/billtrack/major-port-authorities-bill-2020

https://www.ibef.org/industry/ports-india-shipping.aspx

What would happen once lockdown in India is lifted?

• India faces a similar choice as that of Goldilocks with respect to the COVID-19 pandemic, and the timing of when to ease out the nationwide lockdown.
• Ease it out too early, and the disease could rapidly spread, wiping out the hard-won gains from the 21-day quarantine.
• Ease out too slow, and the continued lockdown could wreak havoc on India’s economy, potentially causing permanent damage and losing more lives from economic hardship than from the disease.

What then is the right time to ease out the lockdown? This question can be answered after studying this Burning Issue.

Context

• The so-called sudden outbreak of a novel Coronavirus that began in the Chinese city of Wuhan has rocked the world. Now, infections have been confirmed in almost every country.
• With crumbling health infrastructure due to overburden, India’s preparedness for handling this epidemic has become a major challenge.
• The world along with India being no exception has responded with extraordinarily aggressive measures such as phased lockdowns, Bhilwara Model, Pathanamthitta Model, Taiwan model etc.
• The success of these models is attributed to various best practices which are were implemented days before the thought of nationwide lockdown was incepted.

An old African proverb says, “An ant can kill an elephant.” This effectively seems true in the current COVID-19 context. While the contagion is ravaging economies, people and livelihoods globally, governments — rich and poor — are gasping for an effective coping strategy.

There are handfuls of success stories of “Coronavirus Slayers” who have been courageously fighting the pandemic and have emerged successful.

Various models for COVD-19 containment

–

(Indian Models)

1) The Bhilwara Model

• Rajasthan’s Bhilwara could have become the corona epicentre for the country had it not followed a stringent strategy, courtesy to IAS officer Tina Dabi (AIR 1, 2015) and her pro-active team.
• The “Bhilwara model” of tackling COVID-19 cases involves, simply, “ruthless containment”.

What is this ‘ruthless containment’ model about?

• It refers to the steps taken by the administration in Rajasthan’s Bhilwara district to contain the disease, after it emerged as a hotspot for coronavirus positive cases. It can be summarized as-

1. District isolation
2. Aggressive screening in the city and rural parts
3. Quarantine and isolation wards
4. Rigorous monitoring

What were the earliest measures adopted?

• The measures taken by the state govt. included imposing a curfew in the district which also barred essential services, extensive screening and house-to-house surveys to check for possible cases.
• It went for detailed contact tracing of each positive case so as to create a dossier on everybody they met ever since they got infected.

What did the administration do as part of the containment strategy?

• The administration backed up the surveys by imposing a total lockdown on the district, with the local police ensuring strict implementation of the curfew.
• Intense contact tracing was carried out of those patients who tested positive, with the Health Department preparing detailed charts of all the people whom they had met since being infected.
• The state took the help of technology, using an app to monitor the conditions of those under home quarantine on a daily basis along with keeping a tab on them through GIS.
• The patients were treated with hydroxychloroquine (HCQ), Tamiflu and HIV drugs.

Groundwork

• Within three days of the first positive case, the district health administration in Bhilwara constituted nearly 850 teams and conducted house-to-house surveys at 56k houses and of 280k people.
• Thousands were identified to be suffering from influenza-like illness (ILI) symptoms and were kept in-home quarantine.

Success:

Bhilwara which was the first district in Rajasthan to report the most number of COVID cases has now reported only one positive case since March 30.

2) The Agra Model

• Agra was the first identified cluster in India and continues to have one of the highest district-wise caseloads.
• The “Agra model” followed a localised yet massive combing operation for contacts, carried out by the district administration and Integrated Disease Surveillance Programme personnel.
• It worked on war front with devised electronic survey including smart city control centre, drones, CCTVs etc.

Various measures taken

• The State, District administration and frontline workers coordinated their efforts by utilizing their existing Smart City Integrated with Command and Control Centre (ICCC) as War Rooms.
• Under the cluster containment and outbreak containment plans, the district administration identified epicentres, the delineated impact of positive confirmed cases on the map and deployed a special task force as per the micro plan made by the district administration.
• The hotspots were managed through an active survey and containment plan.
• The area was identified within a radius of 3 Km from the epicentre while 5 Km buffer zone was identified as the containment zone.

Massive scale of monitoring

• In the containment zone, Urban Primary Health Centres were roped in.
• Health workers including ANMs/ASHA/AWW reached out to 9.3 lakh of people through household screening.
• Additionally, effective and early tracking of first contact tracing was thoroughly mapped.

Success:

The Agra model is important because it has proved effective in areas of high case density, which are being referred to as “hotspots”. Agra was also the earliest reference to community transmission.

3) The Pathanamthitta or Kerala Model

• Use of technology has been the hallmark of the Pathanamthitta model in Kerala.
• The district saw its first cases in early March when a three-member Italy-returned family ended up infecting several relatives while socializing with them. The count would eventually go up to 16.

How it differs from Agra Model?

• Border sealing and contact tracing happened here too.
• But more than just screening contacts, every person who had entered the district was screened and a database created so that they could be easily reached at short notice.

Self-reporting by people

• Graphics were created showing the travel route of the positive cases and publicized.
• This helped in self-reporting. As people realized from the route map that they had indeed come in contact with a COVID-19 positive person, many walked up to be screened or treated.

Intensive use of technology

• Those under quarantine were checked daily on phone thorough a call centre even as 14 teams of health workers monitored some 4,000 people who had entered the district before its sealing.
• There was also an app — Corona RM — designed by a few engineering students.
• Those under home quarantine were monitored through this app as their whereabouts could be tracked and if they broke quarantine that could be immediately detected through the use of GP.

Success:

The growth of new cases has slowed down in Kerala, with six of the last 10 days witnessing a single-digit rise. This success of Kerala is being attributed to its “prompt response” to its past “experience (of Nipah) and investment” in health emergency preparedness.

Global Successes

1) Taiwan Model of Total Healthcare Management

• Located less than 150 kilometres from the original viral source – China – Taiwan has seen far fewer cases of the coronavirus in the past month, with a much lower infection rate.
• It is also worth noting the practices utilized by Taiwan’s hospitals as they seek to curb the virus and protect patients and medics.

Following were the not so exceptional measures which helped Taiwan authorities contain coronavirus:

Smaller staff groups

• One of the early steps taken was the reduction of the workgroup sizes within medical facilities.
• This reduces the risk of a community spread within the hospital emerging from infected patients being treated.

Traffic control in hospitals

• Hospitals were establishing separate entrances and exits for in- and out-patients to help prevent the spread of infection via regular hospital traffic.
• In effect, hospital entry began to resemble airport customs, with visitors passing through a temperature checkpoint and showing IDs before admittance.

Maintaining a high bed-per-capita ratio

• Many countries have found that they do not have nearly enough hospital beds to care for patients suffering from a highly infectious disease like COVID-19.
• In response, Taiwan has nearly 1,000 negative pressure isolation rooms (an isolation technique used in hospitals to prevent cross-contamination from room to room) available, with the capacity to add significantly more through room reconfigurations.
• This is a remarkably high number, given the relatively small population of the island, and speaks to the country’s preparedness and advanced medical infrastructure.

Best public health policy

• Finally, Taiwan has benefited greatly from the close coordination between its hospitals and the central government.
• Within the country’s nationalized healthcare system, every citizen and resident is assigned a health card, embedded with a computer chip reflecting their identity and medical history.

Success:

As the global total of infections has neared 700,000, with over 30,000 deaths, Taiwan’s count stood at 300, with only 5 deaths.

2) Prolonged, total lockdown: The Wuhan model

Wuhan, the capital of Hubei province, and the geographic origin of the coronavirus have had the longest and most comprehensive lockdown of any region in the world, for a staggering 76 days, starting on 23 January and ending on 8 April.

Actual strategy

• In January, China effectively shut down Wuhan and placed its 11 million residents in effective quarantine — a move it then replicated in the rest of Hubei province, putting 50 million people in mass isolation.
• Across the rest of the country, residents were strongly encouraged to stay at home.

Mass mobilization

• At least 42,000 doctors and medical personnel were sent to Hubei province to shore up the province’s health services.

Masks and checks

• In cities, it quickly became necessary to wear a mask as apartment blocks, businesses and even parks barred entry without one.
• Widespread mask use may have helped slow the spread of the disease, “particularly when there are so many asymptomatic virus carriers

Success:

China had 22 consecutive days (till yesterday) of one new case or less per day, before the lockdown was lifted.

3) No lockdown, rapid testing: South Korea Model

• As countries across the world used their state machinery to impose partial or complete lockdowns, South Korea decided to follow a different route.
• A week since the coronavirus started spreading in their neighbouring country, China, the government responded quickly and ordered all the factories to start producing testing kits en masse.
• Within two weeks, South Korea was producing more than 1,00,000 testing kits per day.
• Furthermore, the government used all its resources to and had carried out over 2,50,000 tests.
• This allowed the government to gather data, monitor the spread and treat/isolate the infected individuals.
• South Korea also used surveillance footage, drone images, credit card activities, etc. to trace the contacts of the infected individuals and put them into isolation.

Success:

By acting quickly, South Korea tackled the COVID-19 crisis effectively while keeping its economy up and running. When a third of the world’s population is living under a lockdown, the relative normality of Seoul feels surreal.

All these models have something in common. Guess what?

• Capacity to contain a virus outbreak depends on the ability to identify cases and contacts in the community on clinical criteria while ensuring smart surveillance on travellers; isolate and identify the causative virus; treat severe cases while counselling mild cases.
• Dealing with pandemics required a multi-pronged approach which all models did rather than solely focussing on discovering a vaccine.
• The WHO’s mantra to tackle COVID i.e. “test, trace, isolate, treat” is the key.
• All these models have followed this strategy either way in their letter and spirit, with exemplary efficiency.

How is India responding?

• Health Infrastructure has been described as the basic support for the delivery of public health activities.
• However, current health infrastructure in India paints a dismal picture of the healthcare delivery system in the country.
• Public health experts believe that India is ill-equipped to handle such emergencies. It is not prepared to tackle health epidemics, particularly given its urban congestion.
• The healthcare administration in crowded cities like Agra, Pathanamthitta and Bhilwara have busted this myth.
• The willingness and effectiveness with which doctors and medical officials in India are working is a testament to the country’s rational and humane approach to the pandemic.

Way Forward

• The aerial spread of the pandemic can be contained with an efficient response which combines effective public health, microbiological, clinical and communication responses.
• In general, hospital services have quickly geared up to treat severe cases in urban areas but rural healthcare needs a step up.
• Effective risk communication to the general public needs to be circulated to prevent panic and provide advice on precautionary measures.
• Central and state health agencies must act in tandem and so are the public and private healthcare facilities.
• The media too must help in increasing awareness without triggering panic through community counselling.

International organisations are important for the UPSC exam. International Relations (IR) is a crucial segment of the UPSC syllabus and every year, questions are asked based on international organisations in the UPSC prelims and mains exams. We have covered the most important organisations in various articles and Burning Issues. This article focuses on the recent issues that have plagued the World Health Organization. 

Context

• US President Donald Trump has lashed out at the WHO by declaring he would “hold” their funding, and then said the decision is still under consideration.
• Trump accused WHO to be China-centric and that it got every aspect of the coronavirus pandemic wrong.
• US, however, isn’t the only one criticizing the WHO. Several leaders, columnists, and others have also criticised the WHO’s handling of China — where the virus had originated.

A brief history of the WHO

World Health Organization

• The WHO is a specialized agency of the United Nations responsible for international public health.
• It is part of the U.N. Sustainable Development Group.
• The WHO Constitution, which establishes the agency’s governing structure and principles, states its main objective as ensuring “the attainment by all peoples of the highest possible level of health.”
• It is headquartered in Geneva, Switzerland, with six semi-autonomous regional offices and 150 field offices worldwide.

Its establishment

• The WHO was established in 7 April 1948, which is commemorated as World Health Day.
• The first meeting of the World Health Assembly (WHA), the agency’s governing body, took place on 24 July 1948.
• The WHO incorporated the assets, personnel, and duties of the League of Nations’ Health Organisation and the Office International d’Hygiène Publique, including the International Classification of Diseases.
• Its work began in earnest in 1951 following a significant infusion of financial and technical resources.

Composition of WHA

• The WHA, composed of representatives from all 194 member states, serves as the agency’s supreme decision-making body.
• The WHA convenes annually and is responsible for selecting the Director-General, setting goals and priorities, and approving the WHO’s budget and activities.
• The current Director-General is Tedros Adhanom, former Health Minister and Foreign Minister of Ethiopia, who began his five-year term on 1 July 2017.

Mandate of the WHO

• The WHO’s broad mandate includes advocating for universal healthcare, monitoring public health risks, coordinating responses to health emergencies, and promoting human health and well being.
• It provides technical assistance to countries, sets international health standards and guidelines, and collects data on global health issues through the World Health Survey.
• Its flagship publication, the World Health Report, provides expert assessments of global health topics and health statistics on all nations.

Focus areas

• The WHO has played a leading role in several public health achievements, most notably the eradication of smallpox, the near-eradication of polio, and the development of an Ebola vaccine.
• Its current priorities include communicable diseases, particularly HIV/AIDS, Ebola, malaria and tuberculosis; non-communicable diseases such as heart disease and cancer.
• It also focuses on a healthy diet, nutrition, and food security; occupational health; and substance abuse.

Achievements

• Some of the WHO’s biggest achievements came in its early days.
• In 1958, the erstwhile United Socialist Soviet Republic, or USSR, had proposed a WHO-led smallpox eradication programme. The disease was still endemic by 1966, especially in Africa and Asia.
• The next year, in 1967, the WHO began its Intensified Eradication Program that focused on mass vaccinations, and it proved to be a huge success.
• By 1980, small pox was declared as eradicated from the world — the only disease to be classified this way.

Other successes

• In 1978, the WHO adopted the Declaration of Alma-Ata, calling on “urgent and effective national and international action to develop and implement primary health care throughout the world”.
• The declaration was considered historic for identifying the role and necessity of primary healthcare in assuring health facilities for all.
• The WHO has played a central role in global immunisation programmes against polio, measles and tetanus, among others.

Financing of WHO

• The WHO relies on assessed and voluntary contributions from member states and private donors for funding.
• It started off with $5 million and 51 member countries — all of whom signed its constitution.
• Now, it has 194 member countries, with a budget of $4.8 billion.
• The US is currently the biggest financial contributor to the WHO and has been its active member for many decades.

Handling of novel coronavirus pandemic

• In December 2019, the WHO’s China office was informed about cases of pneumonia of unknown cause detected in the Wuhan city of Hubei province.
• Ever since, the WHO has worked to inform the world about the illness — called the novel coronavirus — and even earned the praise of global health experts initially for its transparent and swift approach.
• It was the WHO that announced a global emergency due to the spread of the virus and later declared it a pandemic.
• It is raising $675 million to find a cure and spread awareness about the illness.

Why is WHO under Criticism?

1) Some unanswered questions

• Questions were raised when WHO director praised China for the speed with which detected the outbreak and its commitment to transparency.
• China has a history of keeping its data under wraps and it is said to have even concealed the extent of the outbreak during the early stages.
• The WHO surprisingly maintained that masks only need to be used by those with symptoms, and travel bans are “ineffective” in curbing the spread of the virus.

2) Affinity with China

• The WHO can certainly be criticized for giving China too much benefit of the doubt at the beginning of this pandemic.
• The WHO is now being called “Chinese Health Organisation” even as it is at the forefront of fighting its worldwide spread.
• Despite the criticism, the WHO has pledged to keep fighting against the current pandemic.

3) Delayed response

• They accuse the WHO of simply reporting virus statistics given to them by the Chinese government, even though we now know China widely underreported and even tried to hide the extent of the virus.
• For example, in mid-January, the WHO repeated that China said human-to-human transmission of the virus hadn’t been proved.
• The WHO waited weeks to declare a public health emergency and only declared it a pandemic March 11, later than many countries would have preferred.

4) Trump being Trump

• The US is trying to deflect the blame away from this catastrophe back onto China.
• This fight between the US and China, with the world’s leading health organization in the middle, is a distraction.

Some of its failures:

• It has come under fire in recent years for its heavy bureaucratic framework, which has led to inefficiencies, inertia, and even “over-reactions”.
• During the 2009 H1N1 (swine flu) pandemic, the WHO was accused of overplaying the dangers of the virus and aligning with pharmaceutical interests.
• As a consequence, member states bought billions of doses of vaccines that ultimately remained unused, leading to wastage of resources and money.
• The organisation later admitted having failed in communicating about it properly.
• During the Ebola outbreak in 2013-2015, the WHO failed to sound the alarm over the virus, despite knowing about it. Thousands of lives were lost before the WHO could act.

Why has WHO failed?

• The WHO’s sprawling structure is an outcome of a vague mandate and global power imbalance.
• WHO is facing the biggest pandemic in human history. For all the responsibility vested in the WHO, it has little power.
• Unlike international bodies such as the WTO, the WHO, which is a specialised body of the UN, has no ability to bind or sanction its members.
• Its annual operating budget, about $2bn in 2019, which is smaller than that of many university hospitals and split among a wide array of public health and research projects.
• At the same time, the international order on which the WHO relies is fraying, as aggressive nationalism becomes normalized around the world.

Conclusion

• Whatever the causes of this disaster are, it is clear that the WHO has failed in its duty to raise the alarm in time.
• This shortfall of WHO is failure indicative of a deeper malaise: the global institutional framework is a pawn in the hands of the great powers, cash-strapped.
• While the focus has been on what happened between China and the WHO, in epidemiological terms the crisis has moved on.
• The WHO is battling against a breakdown in international cooperation that is far beyond its capacity to control.
• States have been turning away from international institutions for a long time. And WHO has relied on the often unspoken norms of international collaboration that underlie it.

Way forward

• The new world order is on the way. The spread of concepts like “before corona” and “after corona” will become commonplace.
• The global institutional architecture of the 1940s cannot help humanity face the challenges of the 2020s.
• India as a nation has an important say for fundamental reforms in the UN System, including the WHO to make it more transparent, competent, and accountable.
• Nothing less than a new social contract between states and the international system can serve the purpose.

References

https://theprint.in/theprint-essential/all-about-who-the-global-health-watchdog-attacked-as-chinese-health-organization/397998/

https://www.washingtonpost.com/politics/2020/04/08/why-exactly-is-president-trump-lashing-out-world-health-organization/

https://www.theguardian.com/news/2020/apr/10/world-health-organization-who-v-coronavirus-why-it-cant-handle-pandemic

https://www.trtworld.com/opinion/donald-trump-versus-the-world-health-organization-35319

https://en.wikipedia.org/wiki/World_Health_Organization

Context

• Recently, the Ministry of Home Affairs has promulgated the Jammu and Kashmir Reorganization (Adaptation of State Laws) Order, 2020, which comes into force with immediate effect.
• It defines “domiciles” in the new Union Territory (UT) of Jammu and Kashmir for protecting jobs in the Group D category and entry-level non-gazetted posts for the domiciles.

What is domicile?

In law, domicile is the status or attribution of being a lawful permanent resident in a particular jurisdiction.

Background

• On 6th August 2019, the Centre revoked J&K’s special status under Article 370 and Article 35A of the Constitution and bifurcated it into the UTs of J&K and Ladakh.
• The two revoked constitutional provisions let the state legislature decide the ‘permanent residents’, prohibiting a non-J&K resident from buying property there and ensuring job reservation for its residents.

Who were the permanent residents in J&K?

• The law, introduced in 1954, empowered state governments to define “permanent residents” of Jammu and Kashmir and reserve for them certain rights and privileges.
• Till August last year, the term permanent resident covered those who were state subjects of Jammu and Kashmir in 1954 and their descendants.
• It also included those who had lived and owned land in Jammu and Kashmir for at least 10 years in 1954.
• Various rights, such as the right to own land in Jammu and Kashmir, hold government jobs and get state scholarships, were restricted to these permanent residents.

Key Highlights of Order

• The order has amended 109 laws and repealed 29 laws of the erstwhile State and inserted the ‘domicile’ clause in the J&K Civil Services (Decentralisation and Recruitment) Act, 2010.
• The clause for ‘permanent resident of the State’ under the 2010 Act has been substituted by ‘Domicile’ of the UT.
• The Act pertained to employment in the civil services comprising “district, divisional and State” cadre posts.
• Only permanent residents of J&K were eligible to apply for the gazetted and non-gazetted posts but now non-domiciles can also apply for these posts.

Criteria for Domiciles

Satisfying any of the criteria mentioned below, a person would be deemed as a domicile of the UT of Jammu and Kashmir:

• A person who has resided for a period of 15 years in the UT of J&K or
• A person who has studied for a period of seven years and appeared in Class 10th/12th examination in an educational institution located in the UT of J&K
• Someone who is registered as a migrant by the Relief and Rehabilitation Commissioner (Migrants)
• Children of Central government officials, All India Services, PSUs, autonomous body of Centre, Public Sector Banks, officials of statutory bodies, Central Universities, recognised research institutes of Centre who have served in J&K for a total period of 10 years
• Children of such residents of J&K who reside outside J&K in connection with their employment or business or other professional or vocational reasons but their parents fulfil any of the conditions provided

Job criteria for new domiciles

• The domiciles will be eligible for the purposes of appointment to any post carrying a pay scale of not more than Level 4.
• The Level 4 post comprises positions such as gardeners, barbers, office peons and waterman and the highest rank in the category is that of a junior assistant.
• The reservation for domiciles would not apply to Group A and Group B posts, and like other UTs, recruitment would be done by the UPSC.

Other amendments

• The order has also made amendments to the Public Safety Act (PSA) 1978 by removing a clause that prohibited J&K residents booked under the Act to be lodged in jails outside.
• It changes the criteria for appointing the PSA advisory board on the recommendation of a search committee headed by the Chief Secretary instead of the Chief Justice of the J&K High Court.
• The advisory board has a crucial role to play in release of detenus under the PSA.
• It also bars sitting High Court judges to be made part of the board without the Chief justice’s consultation.
• The order also scraps a clause that deals with the power to regulate place and conditions of detention.

Why was such an order made?

• The J&K since decades had been unchartered territory for rest of the Indian nationals.
• A wide section of Indians was against reservation in centrally filled jobs being limited only to the J&K residents.
• They felt that by imposing reservation, it would mean a replay of the conditions that existed when Article 35A was in force.

Issues with the decision

1) Real estate misuse

• Commercialization of land for real estate purposes is the most possible threat.
• The government needs to take a measured view of the domicile issue for the purpose of purchase of land.

2) Job losses for locals

• The main objection of residents is the new definition of domiciles would pave the way for non-local residents encroaching over jobs and land.
• Following the order, the youth of Jammu have realized the Centre’s decision will reduce their chances at availing top government posts in the union territory.
• This would result in more competition and lesser chances of erstwhile permanent citizens securing employment in the state.

3) Land encroachment

• The order also amended the J&K Property Rights to Slum Dwellers Act.
• References to “permanent residents” were deleted from the law, making it easier for non-local slum dwellers to gain property rights in Jammu and Kashmir.

4) Hasty decision

• The order reflects a casual exercise carried out at the bureaucratic level without taking the aspirations and expectations of people into consideration.
• At a time when all efforts & attention are focused on the COVID outbreak, the government slipped in a new domicile law for J&K.

6) Political apathy

• The haste for domicile law is widely considered inappropriate and insensitive.
• It is perceived as “an insult upon injury” since the abrogation of article 370 was carried on a promising note.

Conclusion

• Considering the high levels of hostilities and trust deficit in the Kashmiri population, the hasteful promulgation of domicile order is questionable.
• Given this, there is a high chance of Jammu and Ladakh becoming the prime focus for people from different parts of India to buy land and settle.
• This will bring about considerable economic activity, but the locals here will have to not only offer better space but also equal opportunity to participate in work.
• This could potentially marginalize the locals once the settlers arrive which can modify their ways of life.

Way forward

• It remains to be seen how various political outfits of J&K will navigate themselves in the midst of the new political and administrative realities that have taken shape since last year.
• All mainstream political parties of Kashmir has already stated by way of the ‘Gupkar declaration’ that any tinkering with the special status of J&K would be considered an act of war against its people.
• All political parties and people from civil society must be taken on board to achieve the larger good of the inhabitants of UT & nation both.
• Those affected most by the law should be consulted with immediate actions.

References

https://www.civilsdaily.com/news/jk-reorganization-adaptation-of-state-laws-order-2020/

https://www.thehindu.com/news/national/govt-jobs-to-be-reserved-only-for-domiciles-of-jk-says-centre/article31224164.ece

https://scroll.in/article/957948/slow-demographic-change-new-j-k-domicile-rules-draw-chorus-of-protests

Blamed for leaving their homes in defiance of the lockdown, hungry and cash-strapped migrants are struggling in packed shelters while those who managed to reach their native places are facing hostility. What makes India’s migrant crisis unique is not the nature of its migrant workforce but the abruptness of its public policy.

Context

• Labour migration within India is crucial for economic growth and contributes to improving the socio-economic condition of people.
• Migration can help, for example, to improve income, skill development, and provide greater access to services like healthcare and education.

Labour and migration in India

• Seasonal migration for work is a pervasive reality in rural India.
• The annual net flows amount to about 1 per cent of the working age population.
• As per Census 2011, the size of the workforce was 48.2 crore people.
• This figure is estimated to have exceeded 50 crore in 2016 — the Economic Survey pegged the size of the migrant workforce at roughly 20 per cent or over 10 crore in 2016.

Uniqueness of labour migration in India

Click here for larger image

Migrant labour in Indian cities, and the vast majority of workers currently in the news, is marked by three traits:

1) Internal migration

• These migrants come from within India, unlike international migrants who often dominate the study of migration.

2) Informality

• They are low-income workers who are informally employed, meaning they lack formal contracts.
• Many migrant workers perform daily wage labor (such as beldars on construction sites), or are self-employed (for example street vendors).
• Such employment is obviously precarious and day-to-day in nature, with no protections in the event of an abrupt cancellation, as has happened with the lockdown.

3) Circularity

• Most of these migrants do not permanently relocate to the city. Expensive and inhospitable urban environments compel them to move without their families.
• Instead, they circulate between city and village several times a year and remain deeply rooted within sending villages.

4) Gendered migration

• Women constitute an overwhelming section of migrants. Female migrants are less represented in regular jobs and more likely to be self-employed than non-migrant women.
• Domestic work has emerged as an important occupation for migrant women and girls.
• A gender perspective on migration is imperative since women have significantly different migration motivations, patterns, options and obstacles from men.

Each of these factors is important in understanding why migrant workers have been so eager to return home since the lockdown was announced.

What is their contribution to the Indian economy?

• More fine-grained studies have revealed circular migrants are influential, and in some cases, the predominant forms of labour in industries ranging from construction, brick manufacturing, mining and quarrying, hotels and restaurants, and street vending.
• Many of these sectors are integral to the Indian economy and comprise a significant share of our national GDP.

Has it been recorded and acknowledged properly and accurately?

• The informal nature of employment makes it hard to collect reliable data even on the size of this population, let alone its economic contributions.
• We can gain a sense of these contributions by considering sectors in which employment is dominated by circular migrants.
• Circular urban migrants perform essential labour and provide services that many people want but are unwilling to provide themselves.
• Yet too often this work is not received with gratitude by municipal authorities or more privileged urbanites.

Mass exodus of migrant labour

• The exodus of migrant workers is far from surprising as it was caused by a rational panic triggered by misinformation.
• They live in inhospitable conditions such as cramped rented rooms or are compelled to sleep on the footpath, lack documents to access benefits such as rations in the city, do not have family members in the city, and have few savings to draw upon.
• The lockdown took away their only reason for enduring such hardships: work in the city.
• Moreover, given the nature of the novel coronavirus, it would be completely plausible for migrants to be unsure about when work opportunities might actually resume in cities.

Was it preventable?

• Considering the severity of coronavirus breakdown, an immediate lockdown was inevitable. And the already vulnerable migrants were the first to get impacted.
• However, a more effective and humane response would have first considered how an abrupt lockdown might affect transient populations.
• Given the lockdown order required everyone to stay at home for a prolonged period, it is especially important to consider those populations who are often forced to work far away from their homes.
• Second, a more effective response would have decided whether to prioritize keeping migrants in place in destination cities, or helping them safely reach home.

Threats to covid returnees

• Authorities tend to view migrants through the lens of enforcement rather than accommodation. Circular migrants experience considerable police repression in the cities they work within.
• This attitude remains apparent in the reports and images of police violence towards migrants during this current crisis, and the language of enforcement that pervades recent government orders.
• Clearly the pandemic has produced certain specific responses, such as disturbing images of migrants being rounded up and sprayed with harmful chemicals.
• Yet these responses are hardly divorced from longstanding patterns of marginalization.
• If anything fears stoked by a viral pandemic is especially amenable to being channelled through longstanding systems of classification, purity, and stigma based on caste, class, and occupation.

What could have been done?

• If the goal was to get migrants safely home, resources should be targeted to ensure safe and clean passage and a feasible local quarantine strategy for migrants in their home regions.
• Resources should be mobilized keeping them healthy, housed, and fed (including by enabling them to pay our pause rent, and access PDS benefits in cities).

Issues with migrant’s welfare

1) Lack of reliable data

• We lack a consensus estimate of the size of our circular migrant population for a number of reasons.
• Many official data sources use definitions of migration that fail to capture the transient and itinerant patterns observed by circular migrants.
• For example NSSO collected specific data on migration in its 64th round, and found the all-India rate of ‘short-term migration’ is between 1 and 2 percent.
• The NSS defines a ‘short-term’ migrant as one who stays away for up to 6 months during the last year, but many circular migrants spend most of the year working in cities, returning home for festivals, harvests, or to see family.
• Further, the fact that these migrants live and work in informal conditions in cities, and circulate between village and city, make them especially difficult to access through standard residence-based surveys.

2) Lack of Policy Measures

• The striking difference in how we treat international and internal migrants is particularly apparent if we think of wealthy international diaspora such as Indians residing in the United States.
• Diasporas are celebrated for their accomplishments and remittances and feted at events such as the Howdy Modi rally held recently in Houston.
• The power of these groups fueled significant efforts to expand their standing and political rights, including the establishment of new categories of citizenship (such as the Overseas Citizens of India).
• By contrast there are few systematic efforts to celebrate and acknowledge the contributions of poor circular migrants including the recent One Nation One Ration Card Scheme.

3) Other hardships

• Lack of alternate livelihoods and skill development in source areas, locations from where migration originates, are the primary causes of migration from rural areas.
• Migrants repeatedly face harassment and mistreatment by urban employers, middle-class shopkeepers and residents, and local police.

Most of their vulnerabilities are highlighted as under:

• Lack of Awareness: Lack of awareness among migrants about their rights as ‘workers’ and as ‘migrant workers’
• Work harassment: Unscrupulous labour agents who coerce workers and do not pay minimum wages as stipulated by law
• Human trafficking: Many migrants, especially young girls and women, are deceived and trafficked
• Debt traps: Workers who engage in seasonal work, such as in brick kilns or agriculture, are often trapped in a situation of debt and bondage
• Work safety: Poor and unsafe working and living conditions, lack of occupational health and safety
• Sexual harassment: Possibility of violence at the workplace and sexual harassment of women
• Health risks: Greater threat of nutritional diseases, occupational illnesses, communicable diseases, alcoholism
• Exclusion: Exclusion or lack of access to public services and social protection for migrants due to regulatory and/or administrative procedures in destination states

Conclusion

The challenge is that migrants usually form a class of invisible workers. There are different risks in their source and destination areas. Needs of their family members, including infants, children, adolescents and elderly who accompany migrant workers need to be addressed on a priority.

• Economic growth in India today hinges on mobility of labour.
• The contribution of migrant workers to national income is enormous but there is little done in return for their security and well-being.
• There is an imminent need for solutions to transform migration into a more dignified and rewarding opportunity.
• Without this, making growth inclusive or the very least, sustainable, will remain a very distant dream.

Way Forward

• Since internal migration in India is very large, it needs to be given high priority with specific policy interventions.
• Governments and policymakers can play a vital role in ensuring that migrant workers undertake safe migration, have decent working and living conditions in destination areas, are aware of their rights and have access to social security and welfare schemes.
• Suggestions to promote decent life for migrant workers in India include: developing a policy framework that gives priority to migrants, creates linkages between state and central policies on healthcare, education and social security, and facilitating convergence of state and central resources.

Broadly, these series of measures can be summarized as below-

• Establishing institutional mechanisms for inter-state coordination
• Improving enforcement of labour laws
• Adopting a four-pronged approach for better protection of rights of workers that defines the roles and responsibilities of the state, employers, workers/trade unions/civil society organizations and emphasizes the use of social dialogue and collective bargaining for promoting the rights of migrant workers
• Accessing housing, water and sanitation and other urban amenities
• Universal registration of workers on a national platform and developing comprehensive databases
• Strengthening and/or setting up district facilitation centres, migrant information centres and gender resource centres
• Strengthening the role of panchayats and other local authorities in registering workers
• Providing education and health services at the worksites or seasonal hostels
• Providing skills training, in particular for adolescents and young workers

References

https://indianexpress.com/article/explained/migrant-labour-role-india-lockdown-tariq-thachil-6343869/

http://www.aajeevika.org/labour-and-migration.php

https://edition.cnn.com/2020/03/30/india/gallery/india-lockdown-migrant-workers/index.html

The Mineral Laws (Amendment) Bill, 2020 has been passed by both the Houses of Parliament and is waiting for Presidents assent.

About the Bill

The Bill seeks to amend:

• The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and
• The Coal Mines (Special Provisions) Act, 2015 (CMSP Act)

Background

MMDR Act

• The MMDR Act, 1957 forms the basic framework of mining regulation in India. It regulates the overall mining sector in India.
• This act is applicable to all mineral except minor minerals and atomic minerals. It details the process and conditions for acquiring a mining or prospecting licence in India.
• Mining minor minerals comes under the purview of state governments. River sand is considered a minor mineral.
• For mining and prospecting in forest land, prior permission is needed from the Ministry of Environment, Forests and Climate Change.

CMSP Act

• The CMSP Act provides for the auction and allocation of mines whose allocation was cancelled by the Supreme Court in 2014.
• Schedule I of the Act provides a list of all such mines; Schedule II and III are sub-classes of the mines listed in the Schedule I.
• Schedule II mines are those where production had already started then, and Schedule III mines are ones that had been earmarked for a specified end-use.

At present, who gives the permits in the mining sector?

• The State governments provide permits for mining, which are called mineral concessions, for all the minerals located within their respective jurisdictions.
• This comes under the provisions of the Mines & Minerals (Development and Regulation) Act, 1957 and Mineral Concession Rules, 1960.
• However, for minerals specified under the Schedule I of the Mines & Minerals (Development and Regulation) Act, 1957, the Centre’s approval is necessary before granting the mineral concession.
• Minerals specified under the Schedule I include hydrocarbon, atomic minerals and metallic minerals like iron ore, bauxite, copper ore, lead, precious stones, zinc and gold.

Features of the Mineral Laws (Amendment) Bill, 2020

1) Removal of restriction on end-use of coal

• Currently, companies acquiring Schedule II and Schedule III coal mines through auctions can use the coal produced only for specified end-uses such as power generation and steel production.
• The Bill removes this restriction on the use of coal mined by such companies.
• Companies will be allowed to carry on coal mining operation for own consumption, sale or for any other purposes, as may be specified by the central government.

2) Eligibility for auction of coal and lignite blocks

• The Bill clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks.
• Further, the competitive bidding process for auction of coal and lignite blocks will not apply to mines considered for allotment to

1. a government company or its joint venture for own consumption, sale or any other specified purpose; and
2. a company that has been awarded a power project on the basis of a competitive bid for the tariff.

3) Composite license for prospecting and mining 

• Currently, separate licenses are provided for prospecting and mining of coal and lignite, called prospecting license, and mining lease, respectively.
• Prospecting includes exploring, locating, or finding mineral deposit.
• The Bill adds a new type of license, called prospecting license-cum-mining lease (PL-cum-ML).
• This will be a composite license providing for both prospecting and mining activities.

4) Non-exclusive reconnaissances permit holders to get other licenses

• Currently, the holders of non-exclusive reconnaissance permit for exploration of certain specified minerals are not entitled to obtain a prospecting license or mining lease.
• Reconnaissance means preliminary prospecting of a mineral through certain surveys.
• The Bill provides that the holders of such permits may apply for a prospecting license-cum-mining lease or mining lease.
• This will apply to certain licensees as prescribed in the Bill.

5) Transfer of statutory clearances to new bidders

• Currently, upon expiry, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) can be transferred to new persons through auction.
• This new lessee is required to obtain statutory clearances before starting mining operations.
• The Bill provides that the various approvals, licenses, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.
• During this period, the new lessee will be allowed to continue mining operations.  However, the new lessee must obtain all the required clearances within this two-year period.

6) Reallocation after the termination of the allocations

• The CMSP Act provides for the termination of allotment orders of coal mines in certain cases.
• The Bill adds that such mines may be reallocated through auction or allotment as may be determined by the central government.
• The central government will appoint a designated custodian to manage these mines until they are reallocated.

7) Prior approval from the central government

• Under the MMDR Act, state governments require prior approval of the central government for granting reconnaissance permit, prospecting license, or mining lease for coal and lignite.
• The Bill provides that prior approval of the central government will not be required in granting these licenses for coal and lignite, in certain cases.
• These include cases where: (i) the allocation has been done by the central government, and (ii) the mining block has been reserved to conserve a mineral.

8) Advance action for auction 

• Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period.
• The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.

Significance of the Bill

1) Seamless coal mining

• The pl-and-ml licences will increase the availability of coal and lignite blocks and provide for an allocation of different grades of coal blocks in wide geographical distribution.
• Environmental clearances will be automatically transferred to the new owners of the mineral blocks along with other clearances for two years.
• This will allow the new owners to continue with the hassle-free mining operations.

2) Reduced dependence on Imports

• The Bill provides that the companies do not need to possess any coal mining experience in India to participate in the auction of coal and lignite blocks. This will allow 100% FDI in the sector via automatic route.
• It ensures an increase in investments and boosts in domestic coal production to reduce the dependence on imports of coal.

3) End of CIL monopoly

• The Bill put an end to Coal India Ltd’s monopoly in the mining sector as it increases the scope for the private sector.
• This amendment is a welcome step towards liberalisation of the mining sector and attracting the much-needed foreign investment.
• Two crucial aspects – liberalizing the eligibility criteria for participating in the auction and removal of end-use restriction – will attract investment in the sector and foreign direct investment too.

4) Addresses energy demand

• The demand for coal within the country is increasing exponentially in recent times as the government is expanding the capacity to generate power.
• The increase in the production of the easiest and cheapest source of electricity, coal, especially domestic coal, can back the government’s bid to provide electricity for all citizens.
• Without an increase in coal production, it would be difficult to achieve this objective.

5) Multi-sectoral development

• Overall, this move will create an efficient energy market and bring in more competition as well as reduce coal imports.
• It would also help India gain access to high-end technology for underground mining used by miners across the globe.
• It will also increase demand in other sectors such as mining equipment, heavy commercial vehicle industries etc.

Issues with this Bill: Putting the environment at stake

• While many countries are moving away from fossil fuels, especially coal, to combat climate change, India is boosting its demand in this sector, putting the environment at risk.
• This Bill provides for an increase in the competition in the mining sector, paving the way for the rise in the chances of over-exploitation of resources.
• Promoting the growth of coal sector jeopardizes India’s commitments in the Paris Agreement.

Way Forward

• The corresponding rules and bidding guidelines must be assessed in detail to ensure that the proposed law is implemented and given full effect.
• While promoting coal mining, the government must also ensure an increase in the investments in green energy so that it can reduce its dependence on thermal energy.
• There must be an increase in monitoring of the mining activities so that the private players are not tempted towards over-exploitation of resources and labourers.
• Regulations must be strictly monitored and enforced so that there is no adverse impact on either the environment or human beings because of the increase in mining activities.

References

https://www.prsindia.org/billtrack/mineral-laws-amendment-bill-2020

https://pib.gov.in/newsite/PrintRelease.aspx?relid=117513

https://www.youtube.com/watch?v=EfUWkNB6wdE

https://www.youtube.com/watch?v=OWvg4hLV9EM

As the virus continues its march around the world, governments with India being no exemption have turned to proven public health measures, such as social distancing, to physically disrupt the contagion.  Yet, doing so has severed the flow of goods and people, stalled economies, and is in the process of delivering a global recession.

Economic contagion is now spreading as fast as the disease itself. In this uncharted territory, naming a global recession adds little clarity beyond setting the expectation of negative growth.

Economic Shocks of Coronavirus Pandemic

In an economy already reeling under a demand depression, rising unemployment, and lowering of industrial output and profits, all of which happening together for several quarters now, a supply-side constraint would deliver a big blow, jeopardizing growth prospects and social and economic wellbeing of a large number of people.

Understand the damage mechanisms

Classically, financial crises cripple an economy’s supply side. There is a long history of such crisis, and policymakers have learned much about dealing with them.

1) Financial system risks

• The outbreak has already generated stress in capital markets, triggering a forceful response from central banks.
• If liquidity problems persist and real economy problems lead to write-downs, capital problems can arise.
• While from a policy perspective we may know the solutions, bailouts and recapitalization of banks are politically controversial.

2) Capital formation and labour loss

• In the case of a financial crisis, capital formation would take a huge hit, driving a prolonged slump with damage to labour and productivity as well.
• Months of social distancing could disrupt capital formation and ultimately labour participation and productivity growth.

Indian case:  An already wounded economy

The Indian economy wasn’t already doing well with the pandemic worsening the situation. The impact on India can be traced through channels such as: external demand; domestic demand; supply disruptions, and financial market disturbances.

External, domestic demand

• Global recession: As the economies of the developed countries slow down (some people are even talking of recession), their demand for imports of goods will go down and this will affect our exports which are even now not doing well.
• Reduced economic growth: In fact after six months of negative growth, it was only in January that Indian exports showed positive growth.
• Infrastructure underutilisation: Besides these, the IT industry, travel, transport and hotel industries will be affected. The only redeeming feature in the external sector is the fall in oil prices.
• Reduced oil import bill: India’s oil import bill will come down substantially. But this will affect adversely the oil-exporting countries which absorb Indian labour. Remittances may slow down.

Multi-faceted collapse

• Transportation: As passengers travel less, the transportation industry, road, rail and air, is cutting down schedules, sometimes drastically.
• This will affect in turn several other sectors closely related to them.
• Job losses:The laying off of non-permanent employees has already started. As people, in general, buy less, shops stock less, which in turn affects production.
• Production halt: Perhaps retail units will be first to be affected and they will in turn transmit this to the production units. One is unable to make an estimate of the reduction in economic activity at this point.
• Logistics : Supply disruptions can occur because of the inability to import or procure inputs. The break in supply chains can be severe.
• Domestic supply chain can also be affected as the inter-State movement of goods has also slowed down.
• Trade loss: It is estimated that nearly 60% of our imports is in the category of ‘intermediate goods’.Imports from countries which are affected by the virus can be a source of concern.

Financial market collapse

• The stock market in India has collapsed. The indices are at a three-year low.
• Foreign Portfolio Investors have shown great nervousness and the safe haven doctrine operates.
• In this process, the value of the rupee in terms of dollar has also fallen. The stock market decline has a wealth affect and will have an impact on the behaviour of particularly high wealth holders.

How the lockdown has impacted the economy?

The impact of lockdown will be felt through several channels, weakening of domestic demand, disruption in supply chain and disruption in financial market. All of this would result in declining production and retrenchment of employees.

• At the moment, it is a supply-side problem. Both production and distribution of non-essentials have come to a halt.
• This affects at least 55% of the economy for three weeks or about Rs 2 lakh crore. It may even be larger due to previous partial lockdowns by various state governments.
• Now, after the lockdown is lifted, there will quite possibly be an increase in sales which will be met through existing inventories.
• This does not, however, add to the GDP (as these goods and services had already been produced and accounted for). It may take a few more months for the final production and sales to resume.

Haste for a mad scramble

• The similarity with the 2016’s demonetization or 2017’s GST does not end at their economic impact.
• The blow to people and businesses could have been considerably softened but for lack of foresight, planning and strategies.
• All these steps could have been taken before the lockdown was announced, particularly since the announcement succeeded a ‘Janata curfew’ and “complete lockdown” a day later.
• The aftershock of sudden lockdown is unsurprisingly visible now.

Visible chaos

• For one, people rushed into provision stores, making a mockery of ‘social distancing’ which is the primary goal of it.
• Secondly, a day after the lockdown, online suppliers of grocery, medicine and food suspended their services across the country, citing “confusion” or “restrictions imposed by local authorities” on their movements.
• The shutdown of planes, trains, and bus services had caused people to rush into airports, railway stations and bus stands, again making a mockery of social distancing.
• It had another consequence. Inter-state migrants were seen walking hundreds of kilometres with women and kids in tow to their homes because there was no transport and no work.

What can revive the economy?

1) Innovating out of the shock

• It is important to recognize that none of the shock scenarios outlined will be inevitable, linear, or uniform across geographies.
• India will have considerably different experiences for two reasons: the structural resilience to absorb such shocks — call it destiny — and the capacity of medical researchers and policymakers to respond in new ways to an unprecedented challenge — call it innovation.

2) On the medical side

• It’s clear that a vaccine would reduce the need for social distancing and thus relax the policy’s chokehold on the global economy.
• But timelines are likely long, and so the focus may well have to be on incremental innovation within the confines of existing solutions.
• At this moment healthcare savior can create novel interventions, at unprecedented speed, that will break the intractable and unattractive tradeoff between lost lives and creating economic misery.

3) On the economic side 

• RBI has announced several measures, including special lines of liquidity, loan moratorium, and easier asset quality norms, to help the economy tide over the crisis.
• In easier terms, RBI has opened the so-called “discount windows” that provide unlimited short-term privileges to ensure liquidity problems don’t break the banking system.

Way Forward

• The first thing that the government must do is to immediately ramp up testing of suspected persons at a massive scale. We have not done enough testing as yet and do not know the magnitude of the problem.
• The immediate issue is to focus on health, which we have never done, and see how you can establish the public health system. And the second is livelihood issues.
• The way to achieve ‘social distancing’ is not to announce something which then brings suddenly crowds of people together in a panic but to do something for their own security, well-being and longer-term success.
• We may have to look at differential relaxations in a calibrated and transparent manner and identify that areas with these trends can allow some of these activities.
• Even after 21 days, there will be some areas where we can have economic activities without much movement, and restrictions will have to continue elsewhere.
• But we should be prepared for the long haul. Life is not going to be easy.

References

https://indianexpress.com/article/explained/pm-garib-kalyan-relief-package-components-implementation-6333217/

https://www.bloombergquint.com/business/coronavirus-crisis-rbi-announces-moratorium-on-loans-targeted-liquidity-measures

https://www.businesstoday.in/current/economy-politics/coronavirus-lockdown-serious-impact-on-indian-economy-gdp-high-unemployment-covid-19-economic-growth/story/399444.html

https://www.outlookindia.com/magazine/story/how-coronavirus-pandemic-will-impact-the-economy-and-you/303014

It’s life itself that is affected, profoundly so and almost from a genetic level. And that means at every other extended level of human experience. Emotional and psychological, to begin with, and from there to what we go about doing with our daily lives. Earning their bread, trying to survive-or thrive.

The coronavirus or COVID-19 has brought life to a near standstill in almost every part of the world. The virus, which has originated in central China’s Hubei Province has claimed more than 20,000 lives so far and continues to adversely affect more than 150 countries globally.

It is a matter of no debate that we have entered a phase of the global recession which will be worse than in 2009.

Context

• Ever since the Janata Curfew, there were demands that the government should come out with a relief package for the poor, as well as those in the informal sector, which accounts for 90 per cent of all jobs in the country — the demands increased after PM announced a 21-day national lockdown.
• Our Finance Minister has announced the Prime Minister’s Garib Kalyan package — a range of measures that will take to alleviate the economic, health, and food-related distress of India’s poor in the wake of this national lockdown.

Prime Minister’s Garib Kalyan package

The relief package is primarily targeted towards the firms in the organised sector of the economy.  There are five elements to the PMGK package.

1. Medical insurance cover of Rs 50 lakh for all health workers (doctors, paramedics, Asha workers etc.) treating patients.
2. Help for the poor and those engaged in the unorganised sector.
3. Help for the poor engaged in the organised sector.
4. Help for construction workers.
5. Use the money already available in the “district (-level) mineral fund” to pay for medical testing and screening for the coronavirus.

(A) For poor and those in unorganised sector

The help is in two ways — free food grains, and cash transfers.

1) Food assistance

• The central government, working with the state governments, will provide an additional quota of food grains free of cost to all 80 crore beneficiaries under the Public Distribution System.
• As such, PDS beneficiaries will get 5 kg of wheat (or rice) per month for the next three months.
• Additionally, each household (or family) — typically, a household is assumed to have 5 members — will get 1 kg of pulses per month.

2) Monetary assistance

The government announced 6 types of additional cash transfers. These are:

• Rs 2,000 per farmer to 9 crore farmers under the PM-KISAN scheme.
• An additional Rs 1,000 per month pension for the next 3 months for those receiving old age, widow or disability pensions.
• Rs 500 per month will be transferred for the next 3 months to women holding a Jan Dhan bank account. This is expected to help 20 crore women.
• Over 8 crore women who are registered beneficiaries under Ujjwala Yojana will get one LPG cylinder per month for the next three months. While this is not exactly a cash transfer, these cylinders will be free of cost.
• Women SHGs across the country — roughly around 63 lakh of them — can now take collateral-free loans up to Rs 20 lakh instead of the existing limit of Rs 10 lakh. This too, is not a cash transfer, rather an enabling provision for receiving higher credit.
• Wages paid for manual labour under MGNREGA have been increased from Rs 180 per day to Rs 202 per day. According to the FM, this move will help 5 crore households (since only one person per household can avail of employment under MGNREGA) and enable them to earn Rs 2,000 as additional income. However, the work needs to be done in a manner that ensures social distancing.

(B) For the organised sector

This help essentially relates to the Employees’ Provident Fund. There are two initiatives announced by the government — one in which the government actually pays on behalf of the poor and the other in which it enables the poor to withdraw their own money from their EPF accounts.

1) EPF contributions

• Under the first provision, the GoI will pay the EPF contributions — 12% of the basic salary — of both the employees and the employers for the next three months.
• However, this move applies only to about 4 lakh firms where the total number of employees is less than 100, and where 90 per cent of the employees earn less than Rs 15,000 per month.
• The move is aimed at reducing the monetary strain on small firms in the organised sector that may feel compelled to fire employees given the mounting financial strain.

2) EPF withdrawals

• The government has amended the Employees Provident Fund Organisation (EPFO) regulations to enable workers to withdraw a non-refundable advance from their EPF accounts.
• This amount is, however, limited to 75 per cent of the total money in one’s EPF account, or one’s salary for three months, whichever is lower.
• So, if one earns Rs 20,000 per month, and has Rs 1 lakh in one’s EPF account, then one can only withdraw Rs 60,000 from it (not Rs 75,000).
• This move is expected to help close to 4.8 crore workers registered with the EPFO.

(C) For construction workers

• The construction sector traditionally employs a large number of people, especially those who leave villages and farming out of distress, and come to cities looking for work.
• However, construction activities have been severely hit over the past few years, given the sharp slowdown in the Indian economy as well as the mess in India’s real estate sector.
• The complete shutdown of economic activity as a result of the lockdown has essentially rendered all labourers jobless overnight.
• To alleviate the economic distress of construction workers, the government has asked state governments to use the money — roughly Rs 31,000 crore — already available in welfare fund for construction workers.

How far are these measures effective?

• The announcements related to the provisioning of food grains via PDS will be especially helpful. However, a few points need to be flagged.
• One, some of the measures would have happened on their own. For instance, MGNREGA wage increases typically happen in April. Similarly, the first instalment of Rs 2,000 under PM KISAN would have been due in April.
• Two, some of so-called cash transfer amounts are too small (like Rs 500 per month for women Jan Dhan account holders); some others are not really there (like the doubling of loans for women SHGs).

Question of implementation

• For instance, at present many construction workers and labourers are struggling to reach their homes.
• To receive help, they will need to have been registered in a particular state, but there is nothing to assume that they are in the state in which they are registered.
• Similarly, it is an open question of how manual labour under MGNREGA can happen while maintaining social distancing.
• If a lot of people join in, there would be a concern of disease transmission — and if very few join in (fearing the disease) then the hoped-for benefit may not actually accrue.

The cry is yet unaddressed

• The main problem for poor and vulnerable households today is liquidity stress.
• Unlike big businessmen or the salaried middle class, these are people with no balance sheets, reserves, or bank balances.
• Every day’s loss of work for them means cutting down even basic consumption and going deeper into debt. Free grain can help, but does not address the real crisis, which is of liquidity.
• They need cash to buy essential things other than just food — and most of them had it till the other day.

Not a hour to criticize

• Migrant workers are of two kinds: permanent and seasonal. March, in particular, sees large number of seasonal migrants because it is harvesting time, and not much labour is required now.
• Seasonal migrants keep moving continuously, from one place to another, in search of work. This has only exacerbated the problem.
• Had a support programme for all unorganised sector workers preceded the lockdown, it could have just been possible for the government to make them stay back at urban centres, instead of exposing them to the risk of catching the disease and further infecting their families back home.

Financial impact of the move

• The package will cost the national exchequer Rs 1.7 lakh crore, which is 0.8 per cent of India’s estimated gross domestic product in the current financial year.
• The package is still no way comparable to the $2.2 trillion economic package
• However, not all this money is in addition to what was announced in the Union Budget; some of the announcements refer to expenditure which would have happened under normal circumstances as well.

Continued…………..

Most of the world’s oil is controlled by a very small group of people- the Middle Eastern cartel called OPEC, US, and Russia. And with great resources comes great responsibility. Their job is to manipulate the oil supply to ensure prices the world over remain stable.

Unfortunately, with Coronavirus having taken centre stage, demand for oil isn’t exactly like it used to be. And in a last-ditch effort to keep prices stable, OPEC decided to push for more production cuts.  However, Russia disagreed, leading to one of the most brutal price wars in history.

Context

The talks between OPEC and Russia had finally collapsed, possibly precipitating a price war that could push oil (Brent Crude) down to as much as $20 a barrel. For context, last month oil was trading as high as $60 dollars a barrel.  Hence the concept of OPEC+ stands scrapped!

Fall in global crude oil prices

• Oil prices have been tumbling now and it’s hovering at about $35 a barrel now (it was $65 last December).
• And of course, this is horrible news for all the nations that export oil.

Background

Before we get to the story on OPEC+, lets  quickly recap :

OPEC

• OPEC is a permanent, intergovernmental organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
• It aims to manage the supply of oil in an effort to set the price of oil in the world market, in order to avoid fluctuations that might affect the economies of both producing and purchasing countries.
• It is headquartered in Vienna, Austria.
• OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
• Today OPEC is a cartel that includes 14 nations, predominantly from the middle east whose sole responsibility is to control prices and moderate supply.

Russia

• Russia happens to be the 3rd largest supplier of Oil in the world (12% of all oil produced).
• This means they too have considerable influence in controlling the global oil supply.
• And back in 2017, OPEC and Russia started colluding informally to cut production and prop up prices. This came against the backdrop of oil having made some terrible lows.
• So two big parties come together to keep prices stable and it obviously helped.

OPEC plus and its Fall

OPEC plus

• The non-OPEC countries which export crude oil along with the 14 OPECs are termed as OPEC plus countries.
• OPEC plus countries include Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan and Sudan.
• Saudi and Russia , both have been at the heart of a three-year alliance of oil producers known as OPEC Plus — which now includes 11 OPEC members and 10 non-OPEC nations — that aims to shore up oil prices with production cuts.

Why OPEC plus came into existence?

When Russia concluded the Vienna Agreement in 2016, the Russian leadership believed that it would help prepare the country for the Russian presidential elections in March 2018. Higher oil prices ensured the Kremlin’s financial capacity to lead a successful electoral campaign.

This changed the regime’s priorities – from satisfying the needs of the general population to ensuring the sustainability of the Kremlin’s alliance with powerful tycoons, including those controlling oil production who would, in the end, either approve a successor to Putin or a constitutional amendment that would allow him to stay in power for two more terms.

• For Saudi Arabia, turning what had been an ad hoc coalition into a formal group provides a hedge (protection) against future oil-market turbulence.
• The kingdom now leaned on a group representing almost half of global oil output for support.
• For Russia, the formalization of the group helps expand Putin’s influence in the Middle East
• However both reportedly aimed at causing a drop in oil prices in order to hit US shale producers, who have continued to benefit from OPEC production cuts by expanding their market share.

Why did OPEC+ talks fail?

• Because with Coronavirus having taken centre stage, things have changed. Air travel has taken a beating. Industries are shutting down. All trading activities are on edge.
• And the global economic outlook has soured rather considerably. So OPEC has been insisting on deep production cuts to keep prices stable.
• Now nobody knows for sure why Russia doesn’t want to follow through. Maybe, it’s because Putin doesn’t take orders from a 34-year-old Saudi prince.
• Experts contend that this is Russia testing the boundaries of this alliance considering the simple fact that Saudi and other OPEC members are negotiating so hard tells us the kind of influence Russia holds in the market.

Russia’s pullout

• It seems Putin is able to secure another six-year term with a high enough turnout and significantly high approval rating.
• Since then, the political goals of the Russian regime have changed, which required a different approach to cooperation with OPEC+.
• Since Corona outbreak, the Kremlin’s own perception of OPEC+ has changed. It has come to believe that the cartel is losing its ability to shape the global energy market due to the growing oversupply and the beginning of a global energy transition.
• The Russian leadership finally accepted that the era of high oil prices was gone and that it will not come back.

Global Implications

• OPEC is on the offensive and they’ve already started selling oil at deep discounts. They’ve also threatened to flood the markets with oil in the coming days.
• Saudi Aramco not only announced that it would increase its crude supplies to the market but also said it received instructions to increase its maximum sustainable oil output capacity.
• The increase in oil supplies to the market will drive oil prices down and launch an economic “war of attrition” between oil producers.
• In the end, the companies that have the capacity to survive a prolonged period of low oil prices will succeed in securing their share of the market and win the war.
• Moscow’s limited capacity to increase oil output means it will be unable to compensate for all losses caused by the reduction in prices by upping its production.
• However, the oil price Russia needs to keep its budget balanced is lower than the one needed by Saudi Arabia and the UAE ($42 pb compared to $70-80 pb).

Immediate Injury to US

• The most immediate pain is likely to be felt in the U.S. shale industry, where companies have already been struggling as investors lost enthusiasm for the sector.
• In part, that’s what the Russian energy ministry has been aiming for.

Significance for India

Petrol and diesel prices in India, however, haven’t yet been reflecting the drop in global oil prices. In fact, crude oil prices have halved since the start of 2020, but retail prices have declined by only around 7%.

Many factors — pricing mechanism, currency movements and taxes – queer the pitch on passing on crude oil cost benefits to customers.

1) Product pricing not crude linked

The price of petrol and diesel in India is not determined by the actual costs incurred by refiners on crude oil sourcing, refining and marketing.  Rather, a formula — Trade Parity Price (TPP) — is the starting point for pricing these products.

• TPP is the weighted average of import parity price (IPP) and export parity price (EPP) with weights of 80 and 20, respectively.
• IPP is the price importers would pay in case of actual import of the petrol and diesel at Indian ports, while EPP is the price oil companies would realize on export of petrol and diesel.
• In short, the product pricing assumes that 80 per cent of the petrol and diesel is imported into India and 20 per cent is exported.
• Essentially, the TPP of petrol and diesel in India is determined based on prices of petrol and diesel prevailing in the international market – and not on the basis of crude oil prices.

Demand and supply dynamics globally could be different for the raw material (crude oil) and the finished products (petrol and diesel), and so could their price trajectory — in terms of direction and/or timing.

2) Daily pricing; fortnightly average

• The TPP, which is quoted in dollars, is converted to rupees.
• To this is added the cost of inland freight, marketing costs and margins charged by the oil companies, the dealer commission and the taxes levied by the Central and State governments.
• Until then, prices for these fuels used to be determined on a fortnightly basis.
• But even under the ‘daily pricing’ mechanism, in which the prices of petrol and diesel are revised daily, the price is based on a 15-day rolling average rate of the international benchmarks of petrol and diesel.
• For instance, the price of petrol in India would be based on the international prices of petrol during the preceding fortnight.
• So, international prices of petrol and diesel do not reflect immediately in India — that happens with a time lag.

3) Forex factor

• It is also to be noted that while crude oil prices have crashed, the rupee has been slipping. From 71.2 per dollar in early January 2020, the rupee now trades at 74.4.
• This rupee weakness offsets to some extent the benefit of lower international crude oil and petrol/diesel prices, which are quoted in dollars.
• This will chip away at the price reduction in petrol and diesel.

4) Tax burden

• Next, even if international prices of petrol and diesel are low over an extended period, it does not always reflect in the price of these products in India.
• Blame this on the heavy taxes imposed by both Central and State governments.
• For instance, last time, when the crude oil rout was underway from mid-2014 to early 2016, the Governments at the Centre and many States chose to pocket most of the gains through regular hikes in excise duty and VAT (value added tax) on petrol and diesel.
• Not just the Centre, many states also upped their VAT rates when the previous oil rout was underway.
• High VAT rates are why customers in some States such as Maharashtra and cities such as Mumbai have it worse than others.
• In effect, only a minor portion of the crude oil cost reduction benefit was passed on to consumers.

5) Other factors

• One variable impacting the mismatch is the Rupee. The value of the rupee has depreciated by about 3.6% vis-a-vis the U.S. dollar this year.
• And this is kind of important because we buy a large part of our oil using dollars. So a devalued Rupee means we have to spend a lot more money to buy the same amount of oil we used to.
• This effectively wipes out some of the gains that we might have made from the drop in oil prices.
• There’s also the possibility that the government might not choose to pass on the benefits of lower prices to consumers at all.
• Instead, Govt. has decided to raise Excise duties on petrol and diesel- money which will go directly into central and state coffers.

Potential benefit

Who gains from the fall?

• Oil Marketing Companies (like BPCL and IOCL) choose to retain most of the gains.
• Because when prices rise and public pressure forces governments to act, the government asks the OMCs to take a hit on their margins so people can continue buying oil at a modest price.
• Granted the government does reimburse some of this money, but it’s not very reliable.
• So when prices dip, it’s an opportunity for OMCs to shore up their margins by keeping some of the gains themselves.

Point of Interest: The governments can force OMCs to absorb the losses because they have majority ownership in most of these companies.

Benefits for India

• India imports over 80% of its crude oil requirements, making us inadvertent winners in this price war.
• India’s crude oil import bill during FY 2018–19 was around $112 billion. And for each dollar reduced per barrel now, this bill drops by $1.45 billion, year on year.
• This kind of decrease is substantial because it helps us in reducing the big bad number everyone’s scared of — the Current Account Deficit.
• Also, there is another more obvious benefit when oil prices tank. If the price reduction is passed on to customers in the form of lower petrol and diesel prices, we get to save on fuel.

Increasing Strategic Petroleum Reserves (SPR)

• Away from the geopolitical firestorm, India is focused on topping up its SPR.
• According to experts, India will spend about $ 670 million to buy oil at around $30 a barrel, for its strategic reserves, drawn from Saudi Arabia and the United Arab Emirates. Deliveries will start around April-May.
• The Strategic Petroleum Reserves Ltd. (ISPRL), a subsidiary of the Oil Industry Development Board, run by the Ministry of Petroleum and Natural Gas manages these reserves.
• Unlike India, it is estimated that China will achieve its strategic petroleum reserve target of 90 days this year.

When did India plan for SPR?

• In order to manage contingencies, we need at least one month of strategic petroleum reserves, which was the original plan when the exercise began in 2003.
• Unsurprisingly, the government is considering building 30 day reserves in the first phase which will be eventually extended to 60 and, finally 90 days.
• In June 2018, the Cabinet had cleared an additional 6.5 million tonne SPR facilities at Chandikhol in Odisha and Padur in Karnataka, to augment India’s energy security by 11.5 days.
• Two more facilities — one in Bikaner and another in Rajkot — are also expected to be initiated soon to enable storage for 30 days.
• The ISPRL has also been asked to pin down new sites so that a 90-100 days of oil reserve stocks are eventually available at all times.

References

https://www.aljazeera.com/indepth/opinion/fall-opec-age-oil-price-wars-200312124946313.html

https://finshots.in/archive/why-isnt-fuel-prices-coming-down-in-india/

https://finshots.in/archive/why-oil-prices-have-been-tanking/

https://www.nytimes.com/2019/12/05/business/opec-oil-production-cuts.html

https://www.livemint.com/market/commodities/global-oil-producers-face-brutal-reckoning-after-epic-failure-of-opec-deal-11583564684234.html

Our mythology is replete with instances of warrior women who were revered, worshipped like the `Shakti’, consort of Shiva the Destroyer, mother of all warriors, and who manifested herself as Durga the warrior goddess, to fight and destroy evil. The Greek Goddess Athena, the Roman Diana, the Nordic Valkyries and the Amazons are cases in point.

However, the induction of women in armed forces is the matter of debate today.

India’s women in uniform: A timeline

• In 1888, the role of women in the Indian army began when the “Indian Military Nursing Service” was formed during the British Raj.
• During 1914-45, British Indian Army nurses fought in World War I (1914–18) and World War II (1939-45), where 350 nurses either died or were taken prisoner of war or declared missing in action.
• Today, all wings of the Indian Armed Forces allow women in combat roles (junior ranks) and combat supervisory roles (officers), except Indian Army (support roles only) and Special Forces of India (trainer role only) (c. 2017).
• Since 1993, the government has progressively opened up the three services for WOs in selected branches.

A timeline of women’s inductions into the military –

Present context

• Recently, the Supreme Court upheld the right of serving Short Service Commission (SSC) women officers of the Navy to be granted Permanent Commission (PC) on a par with their male counterparts.
• The judgment was based on a case filed by 17 women SSC officers who were denied PC and discharged despite completing 14 years of service as SSC officers.
• Another bench of the court led by Justice DY Chandrachud had earlier declared that women would be eligible for permanent commission in select army cadres too.

Background

• On February 17, the Supreme Court of India passed a ruling that will enable women to serve as army commanders.
• The court also extended permanent service – which has only applied to men so far – to all women officers.
• Following the court’s ruling, women will now be allowed to command entire military units. However, they will still not be permitted to serve in army combat units, like the infantry or artillery corps.

What did the Court say?

• The Court has directed that SSC women officers found suitable for the grant of PC shall be entitled to all consequential benefits, including arrears of pay, promotions and retirement benefits as and when due.
• All serving women SSC officers in at least seven wings, including the executive, engineering, electrical, education, law and logistics, will be eligible to apply.
• The grant of PCs will be subject to: (i) availability of vacancies in the stabilized cadre; (ii) Suitability of the candidate; and (iii) recommendation by the chief of Naval Staff.
• The bench did not though extend the benefit of its ruling to those SSC officers who have since retired, instead granting them pensionary benefits and compensation of`25 lakh to some for loss of the opportunity.

Significance of the move

• The court ruled that women naval officers cannot be denied the right to equal opportunity and dignity entitled to under the Constitution on specious grounds such as physiology, motherhood and physical attributes.
• The battle for gender equality is about confronting the battles of the mind.
• History is replete with examples where women have been denied their just entitlements under law and the right to fair and equal treatment in the workplace.

What did opponents say?

• The Judgment frowned on submissions by the government law officer that certain avenues such as sea-sailing duties were ill-suited for women officers as there is no return to the base, unlike in the Army and the Air Force.
• The law officer had claimed that in vessels of a Russian origin no provision has been made for women as sailors and there are no bathrooms to accommodate them.
• It also made the incredulous argument that women should not be appointed to top roles such as colonels or brigadiers, because most soldiers are men from rural backgrounds who are not “mentally schooled to accept women officers in command.

Permanent Commission (PC) Vs. Short Service Commission (SSC)

• A SSC means an officer’s career will be of a limited period in the Indian Armed Forces whereas a PC means they shall continue to serve in the Indian Armed Forces, till they retire.
• The officers inducted through the SSC usually serve for a period of 14 years. At the end of 10 years, the officers have three options.
• A PC entitles an officer to serve in the Navy till he/she retires unlike SSC, which is currently for 10 years and can be extended by four more years, or a total of 14 years.
• They can either elect for a PC or opt-out or have the option of a 4-years extension. They can resign at any time during this period of 4 years extension.

Women in Uniform: A global scan

India has limited experience as regards the induction of women in the armed forces. The first batch had joined in 1992. Therefore, our knowledge of the complexities and long-term effects of the issues involved is highly limited.

On the other hand, women have been serving in the militaries of developed countries for a long time. These countries have acquired a deep understanding of all the issues involved.

Let’s have a look:

United States

• The United States is considered a pioneer and a trend-setter as regards induction of women in the services.
• There are approximately 200,000 American women on active duty in the US armed forces. They constitute nearly 20 percent of its strength.
• Women are also participating in Iraq operations in large numbers, albeit in support functions as they are forbidden to be placed in direct ground combat with enemy. They, however, are assigned ‘combat support’ duties on voluntary basis.
• Prior to November 1975, if women became pregnant, they were given the option to terminate pregnancy or seek discharge.
• A number of important steps were initiated during President Clinton’s time. Women were permitted to join as combat aircraft pilots and could also be assigned for prolonged duty on combat naval ships. The scope of combat-risk assignments for women was redefined to open additional appointments to them.

Israel

• Though Israel has conscription for women (as well as men), a large number of them are exempted for various reasons.
• Women are generally not allotted active battle field duties. They serve in many technical and administrative posts to release men for active duty.
• Although they make excellent instructors as well, most women occupy lower and middle level appointments. Only a handful reaches senior ranks.

Other Countries

• In the Australian Army, women are still not allowed in the field/battle. In Russia, women generally serve in nursing, communications and logistic support functions.
• Like all Islamic states, Pakistan does not permit women in the armed forces. It is feared that women would create distraction and cause disruption of internal order.
• There is also a great deal of concern for the safety of women from the organisational environment itself.

Why males have ever dominated the armed forces?

• Militaries across the world help entrench hegemonic masculine notions of aggressiveness, strength and heterosexual prowess in and outside their barracks.
• The military training focuses on creating new bonds of brotherhood and camaraderie between them based on militarised masculinity.
• This temperament is considered in order to enable conscripts to survive the tough conditions of military life and to be able to kill without guilt.
• To create these new bonds, militaries construct a racial, sexual, gendered “other”, attributes of whom the soldier must routinely and emphatically reject.

Dimensions of the Issue

Indeed, the court’s strong statements against the gender stereotypes employed by the government come as a welcome relief. Equally, ensuring that women can hold permanent commissions in the army recognises the equal effort and service that they put in.

• Gender is not a hindrance: As long as an applicant is qualified for a position, one’s gender is arbitrary. It is easy to recruit and deploy women who are in better shape than many men sent into combat.
• Military Readiness: Allowing a mixed-gender force keeps the military strong. The armed forces are severely troubled by falling retention and recruitment rates. This can be addressed by allowing women in the combat role.
• Effectiveness: The blanket restriction for women limits the ability of commanders in theatre to pick the most capable person for the job.
• Tradition: Training will be required to facilitate the integration of women into combat units. Cultures change over time and the masculine subculture can evolve too.
• Cultural Differences & Demographics: Women are more effective in some circumstances than men. Allowing women to serve doubles the talent pool for delicate and sensitive jobs that require interpersonal skills, not every soldier has.

The road is not so simple

Capabilities of women

• The Centre states that although women are equally capable, if not more capable than men, there might be situations that could affect the capabilities of women such as absence during pregnancy and catering to the responsibilities of motherhood, etc. 
• The arguments are presented on the basis that a role in combat would require tough training, whereas the current training for women is different and at a much lower level than that of their male counterparts.
• However, Lieutenant Colonel Mitali Madhumita and IAF squad leader Minty Agarwal are examples of women who stand as a testament to the capabilities of women in commanding positions.

Adjusting with the masculine setup

• To then simply add women to this existing patriarchal setup, without challenging the notions of masculinity, can hardly be seen as “gender advancement”.
• In fact, in order to succeed within the army, women are forced to deride their femininity and work harder than men to establish parity in the eyes of their counterparts.
• They are forced to blend in while standing out for their exceptional work in order to be taken seriously.

Fear of sexual misconduct

• This superficial approach to gender equality defines parity solely based on the opportunity to participate hence fails to address several fallouts most notable of which is sexual harassment and abuse.
• Sexual harassment faced by women military officers is a global phenomenon which remains largely unaddressed, and women often face retaliation when they do complain.
• Extensive and rigorous data on the pervasiveness of sexual harassment in the Indian armed forces is not available.
• However, a relatively small 2015 study, which questioned 450 members of the armed forces on sexual discrimination in their workplace, found that sexual harassment is rampant in the military.

Gender progressiveness could be an illusion

• In reality, there are several factors behind the decision to include women in the forces, including using the illusion of gender progressiveness within the army to shame populations for their gender inequities, brand them as backwards and use this to justify military control.
• Women’s inclusion is criticized as just another manoeuvre to camouflage women’s subjugation and service as women’s liberation.

Battle of ‘Acceptance’

• The only way to command is to show the lower ranks that the orders are fair and just, both in spirit and action.
• Acceptance of women in the military has not been smooth in any country. Every country has to contend with sceptics who consider it to be a counterproductive programme.
• They tend to view it as a political gimmick to flaunt sexual equality, or, at best, a necessary liability.
• Additionally, every country has to mould the attitude of its society at large and male soldiers in particular to enhance acceptability of women in the military.
• For trained soldiers “acceptance” is not an option; they have undergone rigorous regimentation to accept orders from the command.

Job Satisfaction

• Most women feel that their competence is not given due recognition. Seniors tend to be over-indulgent without valuing their views.
• They are generally marginalised and not involved in any major decision-making. They have to work twice as hard as men to prove their worth. Additionally, a woman is always under scrutiny for even minor slip-ups.
• Many women complain that despite their technical qualifications, they are generally detailed for perceived women-like jobs. Either they get routine desk work or are asked to perform duties related to social minutiae.

Doubts about Role Definition

• The profession of arms is all about violence and brutality. To kill another human is not moral but soldiers are trained to kill.
• They tend to acquire a streak of raw ruthlessness and coarseness. This makes the environment highly non-conducive and rough for women.
• Women, in general, are confused about the way they should conduct themselves. If they behave lady-like, their acceptance amongst male colleagues is low.
• On the other hand, their active participation in casual repartee carries the danger of their losing colleagues’ respect.

Societal Impact

• The government has argued that if a woman is taken captive by insurgents/terrorists or as a Prisoner of War (PoW) by an enemy state, then it would become an international and deeply emotive issue which could have an impact on the society.
• However, times have changed and this cannot be a valid reason for denying command roles and permanent commission to women.

Physical and Physiological Issues

• The natural physical differences in stature, strength, and body composition between the sexes make women more vulnerable to certain types of injuries and medical problems.
• The vigorous training might also have an effect on the health of women officers.
• The natural processes of menstruation and pregnancy make women particularly vulnerable in combat situations.
• Such positions usually leave the commanding officer with no privacy and during adverse situations, the lack of sanitation can have an impact on their health.

Comfort Level

• Most women accepted the fact that their presence amongst males tends to make the environment ‘formal and stiff’.
• The mutual comfort level between men and women colleagues is often very low.
• Men miss their light-hearted banter which is considered essential to release work tensions and promote group cohesion. They consider women to be intruding on their privacy.

Whose concern is National Security…….

Many defence analysts are disgusted with the ongoing emulsive debate incorporating issues of national security with gender justice. Few of their opinion are discussed as under:

• The recent debate about the entry of women officers in the armed forces has been highly ill- informed and subjective in nature.
• People have taken stands and expressed opinion without analysing the matter in its entirety. It is imprudent to consider it as an issue of equality of sexes or gender bias or even women’s liberation.
• It is also not a question of conquering the so-called ‘last male bastion’.
• That would amount to trifling a matter that concerns the well-being and the war-potential of a nation’s armed forces.
• Armed forces have been constituted with the sole purpose of ensuring defence of the country and all policy decisions should be guided by this overriding factor.
• All matters concerning defence of the country have to be considered in a dispassionate manner.
• No decision should be taken which even remotely affects the cohesiveness and efficiency of the military. Concern for equality of sexes or political expediency should not influence defence policies.

Conclusion

While ensuring that women get their rightful place to serve in the armed forces before introducing any measure to improve gender equity, it should not weaken the fighting capabilities of the sword arms of national security. That is the bottom line.

• Our armed forces should undertake an exercise to determine physical fitness standards required for meeting the minimum operational standards (MOS) required for each arm.
• It should recruit persons meeting the MOS, regardless of gender.
• This time-consuming exercise should be undertaken with political and organisational support of the government and the services if they seriously want to lift existing restrictions on women’s entry in all branches of the armed forces.
• Induction of women into combat positions should be on the basis of their abilities and not on the basis of their gender.
• The training for both women and men should be standardized to eliminate differentiation based on physical capabilities.

Way Forward

Defence readiness is one major aspect which is required to be borne in mind throughout while considering their employability options. The career aspects and opportunities for women need to be viewed holistically keeping the final aim in focus.

• Misleading information such as using the patriarchal nature of the society as an excuse to deny women their deserving opportunities should be stopped. India has come a long way, and society should be supportive of women being inducted in to combat roles. 
• So far combatant roles are concerned, an all-women combat squadron should be designed and studied extensively before any further development or decisions are made.
• The training provided to men and women should be similar to eliminate differentiation on the basis of physical standards.
• It is the responsibility of the Government to create both administrative and social infrastructure for the easy induction of women into the Armed Forces. Administrative issues should not be cited as a barrier to women’s entry in the Armed Forces.
• The framework for the induction of women should be incorporated into a policy. As for the concern of preserving the female officers’ modesty and dignity, there should be elaborate codes of conduct to ensure no adverse incident occurs.

Finally, no decision should be taken which even remotely affects the cohesiveness and efficiency of the military. Concern for equality of sexes or political expediency should not influence defence policies.

References

https://www.aljazeera.com/indepth/opinion/equal-roles-women-indian-army-feminist-victory-200303152707759.html

http://www.indiandefencereview.com/interviews/women-in-the-armed-forces/

https://economictimes.indiatimes.com/news/defence/after-army-supreme-court-grants-permanent-commission-to-women-officers-in-navy/articleshow/74667440.cms

https://www.indialegallive.com/top-news-of-the-day/news/women-commanders-armed-forces-walking-tightrope-88805

 https://www.livemint.com/news/india/shooting-down-the-ceiling-women-in-the-army-11582127889314.html

Land acquisition in India refers to the process by which the union or a state government in India acquires private land for the purpose of industrialization, development of infrastructural facilities or urbanization of the private land, and provides compensation to the affected landowners and their rehabilitation and resettlement.

Land acquisition is governed by the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (LARR) and which came into force from 1 January 2014.

Till 2013, land acquisition in India was governed by the Land Acquisition Act of 1894.

Context

• The Supreme Court reaffirmed its February 2018 ruling on Section 24 on land acquisition compensation awards given by a three-judge bench led by Justice Arun Mishra in the Indore Development Authority.
• It also has overruled an earlier co-ordinate Bench ruling in the Pune Municipal Corporation case of 2014 under the Right to Fair Compensation and Transparency in the Act of 2013.

Land Acquisition, Rehabilitation and Resettlement Act

• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act was promulgated in 2013.
• It replaced the Land Acquisition Act, 1894, a nearly 120-year-old law enacted during British rule.
• It regulates the land acquisition and lays down the procedure and rules for granting compensation, rehabilitation, and resettlement to the affected persons in India.
• It has provisions to provide fair compensation to those whose land is taken away, brings transparency to the process of acquisition of land to set up factories or buildings, infrastructural projects and assures rehabilitation of those affected.
• It establishes regulations for land acquisition as a part of India’s massive industrialization drive driven by public-private partnerships.

Scope of the Act

• The Act aims to establish the law on land acquisition, as well as the rehabilitation and resettlement of those directly affected by the land acquisition in India.
• The scope of the Act includes all land acquisition whether it is done by the Central Government of India, or any State Government of India, except the erstwhile state of Jammu & Kashmir.

The Act is applicable when:

1. Government acquires land for its own use, hold, and control, including land for Public sector undertakings.
2. Government acquires land with the ultimate purpose to transfer it for the use of private companies for stated public purposes. The purpose of LARR 2011 includes public-private-partnership projects but excludes land acquired for state or national highway projects.
3. Government acquires land for immediate and declared use by private companies for public purposes.

• The provisions of the Act do not apply to acquisitions under 16 existing legislations including the Special Economic Zones Act, 2005, the Atomic Energy Act, 1962, the Railways Act, 1989, etc.

Criticisms of the Act

• Some criticize the Act citing that it is heavily loaded in favor of landowners and ignores the needs of poor Indians.
• It attaches an arbitrary mark-up to the historical market price to determine compensation amounts, along with its numerous entitlements to a potentially unlimited number of claimants. This according to them shall guarantee neither social justice nor the efficient use of resources.
• LARR proposed mandates that compensation and rehabilitation payments to landowners and livelihood losers be upfront. This misaligns the interests of the land acquirer and those affected. Once the payment is made, one or more of the affected families may seek to delay the progress of the project to extract additional compensation, thereby adversely affecting those who chose long term employment in the affected families.
• The Act fails to adequately define “public purpose”.The current definition, he claims, can be interpreted vaguely. In leaving public purpose too vague and porous, it would ensure that land acquisition will remain hostage to politics and all kinds of disputes.
• The Act inflates the cost of land to help a small minority of Indians at the cost of the vast majority of Indian citizens, as less than 10% of the Indian population owns rural or urban land.

What was the provision under consideration and why it needed interpretation?

• The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act 2013 (2013 Act) replaced the Land Acquisition Act, 1894 (1894 Act).
• The new Act provides for higher compensation to those deprived of land by the government for both public and private sector projects.
• It also mandates the consent of a majority of land-owners and contains provisions for rehabilitation and resettlement.
• Under Section 24(2) land acquisition made under the old law of 1894 lapses if the award of compensation had been made five years before the new Act came into force, but has not been paid.
• In such cases, the process will have to be gone through afresh under the new Act, which mandates higher compensation.

Issue over compensation

• There are cases in which farmers and other land-owners have refused the compensation, leading to delay in the government taking possession.
• In this situation, the compensation amount is deposited in the government treasury. According to one interpretation, if this is done, the acquisition process is saved.
• Then again, others contend that such cases will fall under the new Act because compensation has not been paid to the land-owners, and the lapsing clause in Section 24 should be applied.
• If through interpretation, a long-pending land acquisition process is closed under the old law and fresh acquisition proceedings started under the new one, the land-owners stand to benefit, but project proponents will have to pay higher compensation.
• Therefore, the provision concerned is often a subject of litigation.

What happened in the case before the Supreme Court?

• On January 24, 2014, the court ruled that the acquisition of a piece of land had “lapsed” because the compensation awarded had neither been paid to the landowners/persons interested nor deposited in the court.
• The deposit of the compensation amount in the government treasury was held to be “of no avail” as it was not equivalent to the compensation being “paid”.
• Based on this judgment, subsequent cases were decided on the same principle: acquisition that had taken place earlier than five years before the new Act commenced would lapse if compensation amount was not paid to the land-owners or, in cases in which the owners refused to accept compensation, deposited in court.

How was this precedent dealt with in another case in 2018?

• The same question arose in the Indore Development Authority vs. Shailendra. Another Bench did not accept the earlier Bench’s view.
• On February 8, 2018, the majority, consisting of the first two judges, ruled that the acquisition would not lapse merely because the compensation amount was not deposited in court, but was instead deposited in the treasury.
• It ruled that the past practice of more than a century, under which the amount was deposited in the treasury, was not taken into account by the earlier Bench.
• Some provisions and orders that allowed this practice was not placed before that Bench. Further, the land acquisition in that particular case had been quashed by a High Court in 2008.
• Since it was not a subsisting process, the question under Section 24(2), whether the acquisition lapsed because of non-payment of compensation or non-deposit in the court, did not arise at all.
• On these grounds, Justice Mishra and Justice Goel overruled the earlier judgment and held that it was per incuriam, that is a verdict passed in disregard of law and, therefore, wrong.

What does the controversy mean for land-owners and project proponents?

• A ruling that old acquisitions lapse for non-deposit of compensation will be more beneficial to land-owners and farmers as they stand to get higher compensation and rehabilitation and resettlement measures.
• On the other hand, project proponents feel such an interpretation would mean that those who refused to take compensation, even after it had been fixed and the money deposited in the government treasury, would be taking advantage of their own wrong.

The present ruling by Hon’ble Supreme Court

On Acquisition

• The provision said that in such cases if the physical possession has not been taken “or” the compensation is not paid, the acquisition proceeding is “deemed to have lapsed”.
• The court held that a land acquisition proceeding under Section 24(2) would only lapse if the authorities have neither taken physical possession nor paid the compensation due to the landowner for five or more years prior to January 1, 2014.
• For this, an “or” in the Section was “interpreted” as an “and”.
• Further, the Bench held that Section 24(2) of the Act of 2013 does not give rise to a new cause of action to question the legality of concluded proceedings of land acquisition.

On compensation

• The government if it so wishes would have to initiate “fresh acquisition proceedings” under the new Act of 2013 which provides for “fair-compensation”.
• The judgment, however, said compensation would be considered paid if the amount is put in the Treasury.
• There was no obligation that the amount should be deposited in the court in order to sustain the land acquisition proceedings under the 2013 Act.
• Thus there is no lapse if possession has been taken and compensation has not been paid. Similarly, there is no lapse if compensation has been paid and possession not taken of the land.

What can be done to make land acquisition farmer-friendly?

Suggesting a new method for determining compensation or mere increment in it can never be a perfect solution for farmers. Pooling in farmers, themselves could chalk out a more feasible solution. One such alternative is holding a land auction.

Land Auction

• Farmers should be asked to submit an asking price at which they are willing to sell their land.
• This includes not only those who own land in the proposed project area but also landowners in the surrounding region.

There are four main advantages to this method.

Reducing state coercion

 First and foremost, it vastly reduces coercion. Existing eminent domain law with several amendments and court ordeals gives the citizen no say at all on any aspect of the transfer.  The state can not only seize your property at will, but it also dictates the price.

Choice of compensation

Second, our proposal effectively gives the farmer further choice in the form of compensation – either cash or land. One of the enduring objections to eminent domain is that for poor, illiterate farmers who lack financial savvy, cash will evaporate but the land will keep feeding forever.

Involving private players

• Third, among all possible ways to eliminate disaffection and resistance, this should place the least financial burden on the government.
• It will encourage owners to ask for whatever their land is truly worth to them. The key to keeping any seller honest is competition.
• The auction makes landowners from the project area compete with those from outside.

Land swapping

• Finally, this method should help to keep agricultural productivity high. It is very likely that some farmers who owned land in the project area are more productive than some outside.
• Ideally, their lands should be swapped, and the less productive farmers should be the ones leaving agriculture for some other occupation (after due compensation).
• The absence of a well-functioning land market in the area can prevent this from happening. The auction will make sure that those who give up land are the ones who value it least – that is, the less productive farmers.

Conclusion

Rhetoric from the radical left sometimes suggests that the very notion of industrialization or development is a conspiracy to rob the poor, that messing up corporate plans or even state infrastructure projects is, in itself, a triumph of justice. This is a destructive philosophy that needs to be challenged.

• From financial crises to land acquisition, whenever the government tries to play a facilitating role for industry, it draws the ire of both the left and the right.
• To those on the right, a nanny state destroys character and breeds dependency.
• To those on the left, any assistance to capitalists is a betrayal of the poor by some sweeping zero-sum logic.

Way Forward  

• The present generation of farmers is destined to toil in an overpopulated agricultural sector blighted by low productivity and low pay.
• If the vision of India includes paved roads, electricity, modern housing, indoor plumbing, functioning schools and equipped hospitals for all of 1.2 billion people, the question must be asked how all this will materialize.
• Unlike the urban intelligentsia who often champion their cause, our millions of farmers lack the human capital needed to play a vital role in the new economy.
• The farmers hold one key to the vault where India’s burgeoning wealth is being stored –his land.
• For our huddled masses, the status quo is no less the enemy than change. What they need is a change in which they can be partners, not victims.

References

https://www.civilsdaily.com/news/supreme-court-upholds-2018-order-on-land-acquisition/

https://www.ideasforindia.in/topics/macroeconomics/land-acquisition-need-for-a-shift-in-discourse.html