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to 39-40%. The 42% is under non-plan and tax devolution. The conditional
component rose high with years controlled by planning commission in the
name of plan expenditure and normal central assistance calculated by
gadgil-mukherjee formula. FFC has enhanced co-operative federalism by
enhancing financial autonomy and independence. The plan expenditure
was used to punish and reward states based on central power. Top-down
and one size fits all approach has failed miserably. States should be seen as
independent contributor in national growth and not appendage of union.
The new guidelines will help centre to concentrate of big infrastructure
projects.
Nuclear Deal: direct nuclear trade will take time but it opened new areas
for co-operation between two countries. Defence cooperation under DTTI.
Ghost of fukushima. It is a leap of faith rather than giving and meaningful
outcomes in near future.
FFC: move away from scheme and grant based support to greater
devolution from centres divisible pool of tax revenue. Useless schemes
like for kerala with high literacy rate the scheme for primary education is
not as much important similarly for a power surplus state like Gujarat
scheme related to the sector are not needed. Some states have raised voices
due to loss in their share with new formula but this is a consequence of
their better health than others. The reduced fund will be given to less
developed states.
Railways: reforms are aimed at adequate investment in infrastructure.
Central pay commission sets the pay of employees. Pension liability from
its own earning. Cross-subsidisation of passenger tariff with freight tariff
has its limits. The shock wave given by pay commission will remain till
railways is a government undertaking. Converting it into government
owned company is a reform measure but highly resisted by employees.
This arrangement will also keep organisation from political interference.
Entry of private in operation needs a fundamental shift where management
and operations are to be separated. Same tracks can be used by different
operators to generate competition.
against the law which provide for revision of cap with time as per
inflation. It was also said that law itself takes away the right of people to
claim tort which means that supplier are shielded even from criminal
neglect. In US, suppliers are liable for accident and india is going all out to
accommodate the concerns of suppliers making them above the law.
High level shantaram committee: NFSA be curtailed to 40%. PDS be
replaced by cash transfer to fold up FCI as states will no longer to procure
and distribute food grains. India is today self-sufficient in food production
unlike 1960s. This needs a change in FCI role. People are also moving
away from cereals. The fact ignored is high mal-nutrition, poverty etc. is
still prevalent. Changed production did not lead to food availability to
poor. The food distribution is still important so does FCI. Vast majority of
farmers are not aware of FCI, low collection centres of FCI, centres are
situated in developed region neglecting farmers from weaker regions.
Better procurement in regions with awareness and collecting
infrastructure. States have showed considerable improvement in PDS
leakage and it can be improved further. Excessive storage leading to
rotting and wastage of financial resources is true which can be stopped by
better targeting.
Renewable energy: intermittent, location-specific potential generally
away from grid and higher cost. Peak consumption in night when solar is
not available relying on out storing capacity leading to increasing cost. In
india there is a shortfall in load at the grid and load shedding is used to
keep grid alive.
Reconfiguring the military: ability of a joint operation among different
services is crucial. Indian forces in near future can be employed in
expeditionary roles which makes the flexibility at command level for
quick deployment. Overseas intervention means greater role for navy and
airforce which required their capacity building. Chief of joint staff is
necessary to advice PM and DM. Use of army in non-core activities like
counter-insurgency, riots, natural disaster etc. blunts the armys war
abilities. The size of all services should be brought to parity which reduces
egoness and build co-operation. Converting army corps in marines for this
purpose is an option.
Air safety: 45 flight operations inspectors in place of 75 in india. shortage
or ATC and engineering inspectors. Lack of rest breaks to pilots and air
staff due to financial crunch faced by airlines in violation of regulations.
DGCA is not able to fulfil its mandate. India is among worst in air safety
on rating list.
Renewable: Problem is with that the expansion is driven by subsidy to
both consumers and producers. The RE is high priced as compared to
conventional power. This can erode the competitiveness of domestic
players. The technology is still evolving and committing huge resources
would not be wise. In germany, price of the power has shot up leading to
companies opting out of there.
Carbon capture and store: it captures co2 at its origin of emission,
compress it and store it permanently underground. There are doubts about
the economy because it involves a lot of investment. But the cost involved
is less than the consequences of climate change. CCS, the only technology
that can capture 90% of the co2 from worlds largest producer. In Canada
first CCS system has come up as boundary dam showing it is viable. UAE
has initiated CCS in iron and steel sector. China is collaborating with US
to develop capability in CCS.
Judiciary economic bottleneck: streamlined court process and faster
contract enforcement as paramount factor shaping efficient and effective
business environments. Crores of case are pending regarding tax disputes
in the courts in india. CJI has made mandatory to file verdict that also
reflect qualitative assessment. UPA II had devised a plan to create 5000
supplementary courts to settle cases in order to bring down the litigation
time to 3 from 15 years. Computerization and intelligent case management
are cases in point. Each department can form a team under retired judges
to deliberate on disputes and try to settle them before going to court.
Disposition of cases by consensus is a way forward. Setting up of SC
benches in other cities will also be helpful.
Ailing ports: major ports come under ministry of shipping while nonmajor ports come under state maritime boards. Most ports come under
major ports trust act 1963. Only one port is constituted under companies
act. Port trusts have not able to take timely and effective decision leading
to minimum development due to lack of investment because of
bureaucratic hurdles. Kandla port under adani has developed more
carrying capacity than trusts. This make a case for corporatisation of ports.
This will give them more financial autonomy, attract private capital,
management flexibility, take them out of control of tariff authority when
working as public companies creating competition. All ports to be
governed under companies act as it provides autonomy to ports under its
purview.
Indo-US Nuclear Deal: India need nuclear energy to fulfil its growing
energy needs in a low GHG emission way. There is no problem to make
concession to US as with their help we are able to procure technology and
fuel for our reactors. The deal is a moral booster than any substantive
benefit. The act itself keep liability at 300 million SDR or 2600 Crore rs.
The figure is itself small looking at fukushima incident. US had implicated
BP for its oil spill due to faulty well. It is impossible for anybody to go
close to melted core and see what caused it and implicate the supplier.
MEA said that section 17 can hold supplier responsible by operator if
provided in the contract and not automatic. Why would one sign if not
obligatory. Government said that NPCIL will insist on the clause in
contract but if operator is private then what will be the scenario is not
known. Government also said that tort claim in Indian court and class suit
in foreign court is not allowed in the law itself to indemnify suppliers in
the cloak of conforming with CSC 1997. National insurance pool of 1500
crore is minimum required. One tier of the pool is for operator while other
2 tier are for supplier who are already indemnified. The pool will be
maintained by 50% of GIC and 50% by government and other insurance
agencies. The immediate relief will be from this pool. Government would
be liable for another 1100 crore before drawing from CSC fund that too
after ratifying. Supplier will pay nothing except some premium.
Medicine for TB: researchers at delhi have found drug candidate for TB
and malaria. This facility is in place due to funding from international
organizations and DBT. This is the result of push given in 1980s in
biotechnology. This has global implications. It also helped india in
developing processes to develop these kinds of drugs increasing indias
capability. The centre has attracted researchers from around the globe back
to india to work on the project. Robust research atmosphere, adequate
funding and sound regulations to make drug after trials. Inadequate budget
of DBT is a problem.
Contempt of court: CPI(M) leader was sent to 4 weeks jail in kerala by
its HC. For criticising the court judgement on banning rallies on roadside
to help smooth traffic by calling judges as idiots. HC imposed 6 weeks and
Sc reduced it to 4. This will suppress healthy criticism also. The court
relied on the assumption that the statement will make court order in the
eyes of public as court cannot be relied for justice. This is wrong
assumption within a state of high literacy. SC said that due to their position
judges cannot respond to criticism which is true but COC is to protect the
dignity of court and not he judges. The judges inability is fulfilled by
vibrant civil society. It is said that COC is imperial form as at that time
authority of the court is to be maintained by these options on colonised
public. It is also said that COC is good for countries where courts are
trying to gain legitimacy which is not the case in india.
LAAR: ordinance dispensed with consent for 6 categories of projects and
SIA. Without SIA it will be impossible to assess the affected people to
whom compensation is to be given for non-land owners. It dispensed with
the requirement that 5 years no development land can also be kept and
penalties for non-complying officer. It is claimed that removal of SIA and
consent will reduce cost and also windfall gain to land loosers. LARR
takes circle rates to calculate compensation which takes into account the
agricultural value of land and not the industrial value and is always below
than market values. Before 1980, market was dominated by public sector
and when land is acquired it was seen as for public purpose. In neo-liberal
times land is acquired for private players on large scale. The land are
acquired for any private purpose and given to private sector and
culminated into SEZ.
NITI Aayog: It will serve as a state of art resource centre to evaluate and
monitor programmes and provide policy inputs. It also provide platform
for co-operation between researchers and policymakers. The research on
government policies is done by organisation but the finding are not
included in policies due to absence of sound mechanism for this purpose.
NITI can initiate pilot evaluation before letting go the policy full-fledged.
Evidence based institutions are getting limelight around the world. Two
challenges: 1) inviting high quality researchers from different fields to
provide inputs 2) willingness among policy makers to learn and accept.
IT Act 66A: the section mandated that anyone causing annoyance or
inconvenience or offensive can be put to jail for 3 years. The section is
mostly vague to bring everything into its ambit and giving arbitrary
powers to police. School girls in Maharashtra, jadavpur university
professor in Bengal, azam khan case in UP, azim trivedis cartoon are the
cases of arbitrariness.
Banking System: two challenges: 1) number of banks have failed to
sustain. India has good record in this case with very few collapse. 2) india
lack in financial inclusion and financial depth. RBI is cautious in granting
license. First push in 1994 then in 2004. Still small business have very
limited linkage with banks. In 2014 two more banks are allotted licenses.
Previous attempts of co-operative banks, SHG, more commercial banks
have failed because they are replicating same model and were overlapping.
This created NPA and goals were partially met. New banks with
differentiated mandates such as small and payments banks can make
difference. 1) a system which can cover business cost is sustainable in
india due to huge untapped population. 2) mPESA in Kenya is a successful
example in point. Increased depth of mobile, AADHAR and broadband. 3)
in conventional banks with high fixed capital it makes difficult to fund
small business to recover cost. The payment banks apart from banking
operation also helps them to hold their customer base.
66A IT: IT act 2000 provided immunity to platforms like googe, facebook
because monitoring their content is not possible for them. The blocking
rules also mentioned that content can be removed on the request of third
party. SC has read down the content removal guidelines. Nongovernmental parties have to take court permission now to remove a
content. It is a good step as ISPs lack resources and incentives to identify
the request as valid under the law or not. SC accepted that government
blocking has several safeguards and left it mostly untouched but laid some
guidelines before making orders. SC said that written reasons should be
provided by the government before issuing any blocking order. If no
provided ISPs can deny the request. SC also said that before making an
order reasonable opportunity should be provided to the content originator.
This will open the door for litigation if procedure are not followed and is a
well laid safeguard. The originator due to geographical stretch of the globe
may not be able to contact the originator and ISPs may not defend the
content to save their resources makes the government blocking in practice
still a arbitrary task. The blocking process is secret as per rules. The SC
has ignored this part but at least a notice of government blocking be placed
at the site so that originator can know about the issue.
FCI: swaminathan committee report said to fix MSP with input cost +
50% profit. Central government has said the it will not procure food grains
if bonus is given by states. It has also increased the MSP by only 3%.
States have restricted their procurement owing to this leading to distress
sale by farmers.
SDG in place of MDG: eradication of extreme poverty by 2030. In times
of dominance of private sector, environmental challenges previous method
of giving aid to poor countries to feed their population will not work. Fund
to achieve this should not be garnered only with aid but also with raising
funds through own resources like reducing tax evasion etc. participation of
poor countries in global trade is also important to generate revenue.
Providing market access is an important issue.
ASER Report: learning outcomes are declining consistently with 53 to
48% in 2014. Centre launched padhe bharat badhe bharat to inprove
learning, writing and reading skills is I and II. Low student attendance, low
teacher quality, low parental interest and lack of teacher accountability.
When student of V can read II text only then instead of sticking to regular
curricula with expectation to eventually catch up one should change it to
the actual level of child. The policy making is based on data collected by
district information system on education which does not involve any
learning criteria. Decision making is based on inputs rather than outcomes.
Centre has started initiative in this direction by starting state-level learning
assessment.
DTTI: india looks at US to get defence technology that others cannot
provide. Exchange of defence personnel and partnership between Indian
and US players. India should consider subsidiaries of firms in india.
Rajashthan PRI laws: not below class 10. Sarpanch level class 8 and 5 in
tribal areas. In this context with lower literacy rates marginalised will be
kept out of power circles. It will have adverse effects on women
participation. There are people who worked as sarpanch and learned to use
basic IT services and performed well but without any class8 certificate.
Literacy and intelligence has different meaning.
Higher education: IIT delhi director resigned due to pressure of
marginalisation from MHRD. This has little to do with real problems. DU
VC is continuing regardless of cases of misdoings. His presence
demoralises the academic staff. IGNOU faces crisis due to indiscriminate
expansion. Its VC is also under scanner but still continuing. The erosion of
autonomy is generic and not specific. JNU which has high reputation of
research is now facing cases of plagiarism. More students under a
professor against the established norms. The faculty run institutions
outside where they work leaving little time to look into their duties. One
size fits all and standardisation to achieve excellence is wrong. Mechanical
API based promotion and recruitment has degraded the quality as no
emphasis on quality of teachers. Fake journals have came up to provide
more API rating. UGC has ex-officio VCs which are themselves involved
in various wrongdoings. Expansion of institutions without recruitment of
quality faculty. Ad-hoc appointment at low wages is demoralising and
deteriorating the quality. Good faculty is reluctant to join new colleges due
to lack of infrastructure. Movability of teachers will be used as
punishment.
Justice Joseph: In united states court work on good Friday but not on
national holidays. Good Friday is not a federal holiday in US. The issue is
thus not about religious holidays but national holidays. The argument that
too many national holidays exist in india can be corrected by pruning the
list of national holidays and adding more restricted holidays. The
suggestion by CJI that judges can bring their family to delhi and fulfil
professional and personal obligations is limiting. The constitution of india
provides individual rights over common rights. This is why ambedkar
rejected the idea of village as basic unit in place of individual. The priority
of institution over individual is a tyrannical one as it impinges on the
freedom of individual. The argument in favour is that this is not the first
time that such a conference is organised on holiday, in past such
conferences are organised on Independence Day also.
Net neutrality
TRAI consultation paper proposes either license to OTT or compromise
net neutrality. Till now what is inside internet packets is not subject to
regulation but bringing the content under OTT will spread regulatory
power of TRAI. Internet has grown due to its open character and
permission less innovation. TRAI argues that the fixed and mobile
telephony is overwhelmed by the traffic. This is true but the reasons are:
ISPs are not upgrading their infrastructure. They say that they are not
generating enough revenue but the truth is that they are not regulated on
tariff rates but still data services are cheap in india. TRAI should crack its
whip and not compromise net neutrality. The issue is that internet
companies are making tonnes of money so they should also get a share of
it. The recent telecom auction show that ISPs have enough money as
government has said even with high prices tariff will not increase much.
The comparison are made by comparing time of skype and voice time but
these are two different services and cannot be compared in this way as it is
assumed that if skype was not to be there everybody use voice call. TRAI
emphasized this as revenue gone. This may be true but the data rates have
benefited ISPs. If net neutrality is compromised then ISPs will not expand
their infrastructure and big companies will pay them to free up bandwidth
for them leading to compromised field. Net neutrality in sense encourages
them to expand infrastructure and restricts monopoly. This is rectified in
FCC decree that puts internet services as public utility. All internet
companies such as google and facebook use their home network to connect
to Indian network. High fee could be imposed to generate extra revenue to
connect external network to ISPs.
Net Nutrality
Apples iOS is anything but neutral. It blocks flash. App developers pay
Apple to be listed on the App Store. Nor do we care about which apps are
promoted by Apple. All we care about as consumers is the experience as it
ought to be. Information Technology Act, 2000 nor any rules and
regulations made thereunder, have any reference to net neutrality. Net
neutrality is a principle that is dedicated to making the Internet a neutral
platform for the proliferation of all kinds of services offered by all
stakeholders. Any enhancement of billing for a lay Internet or mobiles
user is not only going to intrinsically harm the financial interests of the
Indian consumer but could also impact the further penetration of Internet
apart from prejudicially impacting the confidence and trust that users have
in the Internet regulation regime. Internet services were stated by VSNL in
1995. In 1998 government opened the sector for private sector with liberal
conditions with no license fee and free to decide the cost of these services.
98% subscribers are with top 20 ISPs while remaining is either unoperational, stagnated or declining and also misused. Internet telephony
called grey market is causing revenue problems for licensed ISPs. ISP
telephony services are allowed from 2002 and from 2006 6% revenue
share was imposed on ISPs earned from internet telephony. Telephony
service technology under present license is not user friendly and required
prior knowledge of computer causing its limited unpopularity which has
now become popular due to improved devices. Uses of these devices is not
allowed under present ISP license and created grey areas. These
restrictions have now been removed. In 2006, government has provided
Rafael deal is over work allocation to HAL. The main aim is technology
transfer. Recipient should ensure that it gets and absorbs technology and
build it indigenously. Offset policy should not be seen in financial and
number of jobs created but in terms of technology absorbed by scientists
and companies. If self-reliance is to be achieved then we have to develop
institutions of excellence with political support and provide financial and
infrastructure to pursue the development of high-end technologies.
Environment dilution
HLC on restructuring of environmental laws. First, speed up the process of
identifying project activities and their impacts. This is to be completed
within 10 days otherwise it should be left with project developers. Second,
this identification should be limited to initial stage only, which means if it
is found that further deep inquiry is needs that cannot be granted. Third,
public hearing not to include settlements which are far from project. Most
of the projects effect far flung areas. Even this public hearing should be
restricted to directly affected people which means in case of dam, the
downstream affected people are not to be included. Fourth, fast track
approval of linear projects which may cause significant damage even after
their narrow area of influence.
NGOs and crackdown
National accreditation agency for NGOs can change the scenario. The
NGOs share diverse purpose, nature and approach. The accreditation is
based on set of standard set of criteria. This approach is not purposeful
because it is difficult to measure diverse NGOs based on standard criteria.
The ratings are helpful to donors because it will cut their transaction cost
based on financial health and adhering to legal rules. This though is not
going to work well with organisations which are making government
accountable. The accreditation though help in improving public
perception, investor confidence and guidance. Credibility alliance which is
a group of NGOs in india has come forward in this field but still this field
in immature.
Naxals
congestion tax fund etc. will help. Urban titling: high land prices is leading
to unaffordable housing, tedious clearance process.
IBSA
Influence of china to give more attention to BRICS than IBSA. India
joined too many association with little time available to official to keep
them alive. One reason is that the prime objective of bringing reforms in
UNSC is not more compelling. Other areas of co-operation are maritime
security, drug trafficking, money laundering and terrorism in south atlantic
and Indian ocean region.