Highlights of this Issue
Budget Session 2022 of Parliament concluded; five Bills passed
Bills passed include the Criminal Procedure (Identification) Bill, 2022, and the Delhi Municipal Corporation (Amendment) Bill, 2022. The Chartered Accountants Bill, pending from the previous session was also passed.
Booster dose vaccination for adults starts; PM Garib Kalyan package extended
All adults who have completed nine months after the administration of second dose will be eligible for the booster dose. The life insurance cover for health workers involved in Covid-19 duties has been extended till October 2022.
Retail inflation at 6.3% in the January-March quarter of 2021-22
Consumer Price Index (CPI) inflation increased from 6.0% in January 2022 to 7.0% in March 2022. Wholesale Price Index inflation increased from 13.7% in January 2021 to 14.5% in March 2022.
Repo and reverse repo rates unchanged at 4% and 3.35%, respectively
Repo rate and reverse repo rate remain unchanged at 4% and 3.35%, respectively. The Monetary Policy Committee operationalised Standing Deposit Facility at 3.75%, to absorb liquidity in the economy without collateral.
Parliament passes Bill to collect identifiable details of convicts and arrested persons
The Criminal Procedure (Identification) Bill, 2022 was passed by Parliament on April 6, 2022. It authorises collection of personal information such as fingerprints, retina scans, and blood from convicts and arrested persons.
Standing Committee submits report on Wild Life (Protection) Amendment Bill, 2021
The Standing Committee on Environment, Forests and Climate Change presented its report on the Wild Life (Protection) Amendment Bill, 2021. The Bill seeks to implement provisions for regulating trade in wildlife.
Standing Committee submits report on Strengthening Credit Flows to the MSME Sector
The Standing Committee on Finance presented its report on credit flows to the MSME sector. It noted a credit gap and recommended bridging it by adopting a digital framework and undertaking cash-flow based lending.
Stock limits on edible oils and oilseeds extended for all states till December 2022
Stock limits have been imposed on edible oils and oilseeds to curb rising edible oil prices, due to supply chain disruptions. States with their own stock limits have been brought under the purview of the centre.
Cabinet approves distribution of fortified rice across government schemes
Fortified rice, with added micronutrients will be distributed via government schemes such as the public distribution system, mid-day meal, and integrated child development services. Fortified rice is expected to combat malnutrition.
Cabinet approves one time window for surrender of non-operational coal mines
Government companies are allowed to surrender non-operational coal mines without penalty, in a three-month window. This is expected to release coal mines that government companies are not interested in developing.
Amendments to Central Motor Vehicle Rules notified
The Central Motor Vehicles Rules amendments revise the validity of the fitness certificate for transport vehicles. Vehicles less than eight years old will be valid for two years, and more than eight will be valid for one year.
TRAI releases recommendations on the auction of spectrum for mobile services
The Telecom Regulatory Authority of India (TRAI) released recommendations on spectrum auction which include 5G networks. It recommends the reserve prices to be set at 70% of the average valuation by TRAI.
Parliament
Tanvi Vipra (tanvi@prsindia.org)
The Budget session of Parliament was held from January 31, 2022 to April 7, 2022, with a recess from February 12 to March 13. Parliament adjourned sine die, ahead of schedule having sat for 27 days.[1] During the session Parliament introduced seven Bills and passed five. Of the Bills passed, one was pending from the previous session (The Chartered Accountants Bill). Bills that were passed include the Criminal Procedure (Identification) Bill, 2022, and the Delhi Municipal Corporation (Amendment) Bill, 2022. None of the Bills introduced in this session were referred to Parliamentary Committees.
For more details on legislative business taken up during the Budget Session 2022, please see here. For details on the functioning of Parliament during the session, please see here.
COVID-19
Shashank Srivastava (shashank@prsindia.org)
Booster dose for all adults commences at private vaccination centres
Booster doses commenced for all adults aged above 18 years at private vaccination centres.[2] All adults who have completed nine months since the administration of second dose of the COVID-19 vaccine will be eligible for the booster dose.
In March 2022, booster dose commenced for all persons over 60 years of age at government vaccination centres.[3] Until February 2022, precautionary doses were being administered only to healthcare and frontline workers, and persons aged 60 years and above with co-morbidities.[4]
Insurance cover for health workers extended by 180 days
Insurance cover under the Pradhan Mantri Garib Kalyan Package was extended by 180 days.[5] The Scheme was launched in March 2020 to provide insurance cover of Rs 50 lakh for public health workers (such as doctors, nurses, paramedics and ASHA workers) who treat COVID-19 patients.
The scheme also covers: (i) serving and retired staff of private hospitals, local urban bodies, (ii) daily wage and contract staff requisitioned by government (state and centre) and autonomous hospitals, AIIMS, and Institutes of National Importance, and (iii) hospitals of central ministries specifically drafted for care of COVID-19 patients. This cover is over and above any other insurance cover being availed by the beneficiary.
Macroeconomic Development
Tanvi Vipra (tanvi@prsindia.org)
Retail inflation at 6.3% in the fourth quarter of 2021-22
Consumer Price Index (CPI) inflation (base year 2011-12) was 6.3% in the fourth quarter (January-April) of 2021-22 over the corresponding quarter in 2020-21.[6] This was higher than the CPI inflation of 4.9% in the fourth quarter of 2020-21 and 5% in the third quarter (October-December) of 2021-22.
Food inflation increased from 5.4% in January 2022 to 7.7% in March 2022, averaging 6.3% for the fourth quarter of 2021-22. This was higher than food inflation of 3.5% in the corresponding quarter of 2020-21. It was also higher than food inflation of 2.2% in the third quarter of 2021-22..
Wholesale Price Index (WPI) inflation (base year 2011-12) was 13.8% in the fourth quarter of 2021-22.[7] This was significantly higher than WPI inflation of 5.1% in the fourth quarter of 2020-21. The WPI in the third quarter of 2021-22 was 14.3%.
Figure 1: Monthly inflation in Q4 of 2021-22 (% change, year-on-year)
Sources: MoSPI; Ministry of Commerce and Industry; PRS.
Repo rate and reverse repo rate remain unchanged at 4% and 3.35%; Standing Deposit Facility at 3.75% introduced
The Monetary Policy Committee (MPC) of Reserve Bank of India (RBI) released its first bi-monthly Monetary Policy Statement for 2022-23.[8] Key decisions of the Committee are:
Home Affairs
Tanvi Vipra (tanvi@prsindia.org)
Parliament passes Bill to collect identifiable details of convicts and arrested persons
The Criminal Procedure (Identification) Bill, 2022 was passed by Parliament on April 6, 2022. The Bill replaces the Identification of Prisoners Act, 1920. The Act authorises the collection of certain identifiable information about specified persons such as convicts for investigation of crime. The Bill expands the ambit of such details, and persons whose details can be taken. It authorises the National Crime Records Bureau to collect, store, and preserve these details.
For a PRS analysis of the Bill, please see here.
Urban Affairs
Omir Kumar (omir@prsindia.org)
Parliament passes Bill to unify Municipal Corporations in Delhi
The Delhi Municipal Corporation (Amendment) Bill, 2022 was passed by Parliament.[10] The Bill seeks to amend the Delhi Municipal Corporation Act, 1957 passed by Parliament.[11] The Act was amended in 2011 by Delhi Legislative Assembly to trifurcate the erstwhile Municipal Corporation of Delhi into: (i) North Delhi Municipal Corporation, (ii) South Delhi Municipal Corporation, and (iii) East Delhi Municipal Corporation. The Bill seeks to unify the three corporations.
For a PRS summary of the Bill, please see here.
Cabinet approves continuation of PM SVANidhi till December 2024
The Union Cabinet approved the continuation of Prime Minister Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) beyond March 2022 till December 2024.[12] Initially, the Scheme had envisaged to facilitate loans worth a total amount of Rs 5,000 crore. The loan amount has also been increased to Rs 8,100 crore.
PM SVANidhi was launched in June 2020 to provide collateral free working capital loans of up to Rs 10,000 to street vendors. The Scheme was launched to provide financial assistance to street vendors affected due to COVID-19.12 Vendors availing loan under the Scheme are eligible for an interest subsidy of 7%.[13] Since vendors have not fully recovered from the effect of COVID-19, the Scheme has been extended: (i) to provide a source of credit, (ii) increase digital transactions, and (iii) reduce the impact of non-performing assets on lending institutions.12
Corporate Affairs
Tushar Chakrabarty (tushar@prsindia.org)
The CA, the CWA, and the CS (Amendment) Bill, 2021 passed by Parliament
The Chartered Accountants, the Cost and Works Accountants, and the Company Secretaries (Amendment) Bill, 2021 was passed by Parliament.[14] The Bill amends the Chartered Accountants Act, 1949, the Cost and Works Accountants Act, 1959, and the Company Secretaries Act, 1980.[15],[16],[17] The three Acts provide for the regulation of the professions of chartered accountants, cost accountants and company secretaries, respectively. The Bills strengthen the disciplinary mechanism under these Acts, and provide for time bound disposal of cases against members of these professions. Key features of the Bills include the following:
For a PRS summary of the Bill, see here.
Finance
Tanvi Vipra (tanvi@prsindia.org)
RBI notifies directions for issuance and conduct of credit cards and debit cards
The Reserve Bank of India (RBI) notified the Reserve Bank of India (Credit Card and Debit Card - Issuance and Conduct) Directions, 2022.[18] The directions regulate who can issue credit and debit cards, and lay down conditions for issuing cards. These directions will come into force from July 1, 2022. Key features of the directions include:
Report on Strengthening Credit Flows to MSMEs submitted
Tanvi Vipra (tanvi@prsindia.org)
The Standing Committee on Finance (Chair: Mr Jayant Sinha) presented its report on ‘Strengthening Credit Flows to the MSME Sector’ on April 8, 2022.[19] The Micro, Small and Medium Enterprise (MSME) sector contributes around 30% to India’s GDP, 45% to its manufacturing output, and 48% to exports. It provides employment to around 11 crore people. The Committee noted that credit gap in the MSME sector is estimated to be around Rs 20-25 lakh crore. Key observations and recommendations of the Committee include:
For a PRS summary of the report, click here.
RBI notifies compliance framework for certain NBFCs
Tanvi Vipra (tanvi@prsindia.org)
The Reserve Bank of India (RBI) notified a framework requiring certain Non-Banking Financial Companies (NBFCs) to put in place a compliance function and appoint a Chief Compliance Officer by October 1, 2023.[20] This will apply to entities belonging to the upper layer and middle layer of RBI’s graded regulatory framework for NBFCs.[21] The middle layer consists of entities such as deposit-taking NBFCs irrespective of asset size, and non-deposit taking NBFCs with asset size of more than Rs 1,000 crore. The upper layer includes those NBFCs which have been identified by RBI as warranting enhanced regulatory requirements.
Exposure limit of insurers to financial activities increased from 25% to 30%
Rajat Asthana (rajat@prsindia.org)
The Insurance Regulatory and Development Authority of India (IRDAI) increased the permitted exposure limit of insurers to financial and investment assets from 25% to 30%.[22] The amendment was notified under the provisions of the IRDAI (Investment) Regulations, 2016.[23] The 2016 Regulations prescribe investment norms for: (i) life insurance, (ii) pension annuity and group business, (iii) general insurance, (iv) re-insurance, and (v) health insurance providers.
Comments invited on draft guidelines for group health insurance products
Rajat Asthana (rajat@prsindia.org)
IRDAI invited comments on the draft guidelines for group health insurance products.[24] IRDAI noted that if operated prudently, group health insurance offers the advantage of beneficial coverage at moderate cost. The draft guidelines were notified under the IRDAI (Health Insurance) Regulations, 2016.[25] The proposed guidelines will supersede the existing set guidelines (issued in different circulars) regarding group health insurance. Key features of the guidelines are:
Comments are invited until May 13, 2022.
Environment
Rajat Asthana (rajat@prsindia.org)
Report on the Wild Life (Protection) Amendment Bill, 2021 submitted
The Standing Committee on Science and Technology, Environment, Forests and Climate Change (Chair: Mr. Jairam Ramesh) submitted its report on the Wild Life (Protection) Amendment Bill, 2021 on April 21, 2022.[26] The Bill was introduced in Lok Sabha in December 2021.[27] The Bill seeks to amend the Wild Life (Protection) Act, 1972. The Act provides for the protection of wild animals, birds, and plants.[28] The Bill seeks to: (i) implement the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), (ii) protect native Indian species, and (iii) improve enforcement of the law. Key observations and recommendations of the Committee include:
For a PRS summary of the report, click here.
Amendments to the 2006 Environment Impact Assessment notification
Shubham Dutt (shubham@prsindia.org)
The Ministry of Environment, Forest and Climate Change amended the Environment Impact Assessment (EIA) Notification, 2006.[29],[30],[31] Under the 2006 notification, certain categories of projects (such as mining, oil and gas exploration, airports, ports, and highways) require prior environmental clearance (EC).[32] Key amendments to the 2006 notification include:
Table 1: Changed period of validity of EC
Projects |
Validity of EC |
|
2006 notification |
Amendment |
|
River valley projects |
10 years |
13 years |
Mining projects |
Up to 30 years |
Up to 50 years* |
Nuclear power projects |
Not specified |
15 years |
Others |
7 years |
10 years |
Note: *Validity of EC may be extended beyond 30 years, by up to 20 years, subject to periodic review and adequate environmental safeguards. The period of validity of EC will be counted from the date of execution of the mining lease.
Source: Ministry of Environment, Forest and Climate Change; PRS.
Civil Aviation
Rajat Asthana (rajat@prsindia.org)
Amendments to Aircraft Rules mandating safety reporting system notified
The Ministry of Civil Aviation notified amendments to the Aircraft Rules, 1937.[34] The amendments have been notified under the provisions of the Aircraft Act, 1934.[35] The 1934 Act regulates the manufacture, possession, use, operation, sale, import and export of aircraft.35 The 1937 Rules prescribe the general safety conditions for operation of aircraft.[36] Key features of the amendments are:
Small Aircraft sub-scheme under RCS-UDAN notified
The Ministry of Civil Aviation notified the Small Aircraft Sub-Scheme, 2022.[37] The scheme aims to facilitate regional air connectivity, with a specific focus on operations through small aircraft (including seaplanes). It also aims to promote affordability of regional air connectivity by: (i) providing concessions by central government, state government and airport operators, and (ii) funding the gap between cost of operating these routes and revenue. The scheme will be operationalised in states and airports/water aerodromes/ helipads which support regional air transport operations by providing concessions and 100% financial support. The scheme will be applicable for a period of ten years. Key features of the scheme are:
Guidelines to operate scheduled international air services by Indian operators notified
The Directorate General of Civil Aviation (DGCA) issued guidelines for Indian air carriers for operating scheduled international air transport services (both passengers, and cargo).[39] The guidelines have been framed under the Aircraft Rules, 1937.36 The 1937 Rules specify that a person must seek permission from the central government, for operating any scheduled air transport service involving Indian airspace.36 Key features of the guidelines are:
Guidelines for implementing e-boarding (Digi-Yatra) notified
The DGCA issued guidelines for the implementation of e-boarding process (Digi-Yatra).[40] Digi-Yatra is a digital ecosystem for paperless processing of passengers at various checkpoints (such as entry check, security check, and boarding) at airports.[41] Key features of the guidelines are:
The Ministry of Civil Aviation is inviting public feedback on the Draft Protection and Enforcement of Interests in Aircraft Objects Bill, 2022.[42] The draft Bill seeks to implement the provisions of the Convention on International Interests in Mobile Equipment (Cape Town Convention), and Protocol on Matters Specific to Aircraft Equipment (Cape Town Protocol).42 The Convention/Protocol aim to achieve efficient financing of aircraft objects (such as airframes, helicopters and engines) to improve the affordability of their operations. India became a party to the Convention/Protocol in July 2008.42
As per the Ministry, achieving full implementation of the Convention/Protocol in India requires a separate legislation, to harmonise its provisions with some other laws (such as the Companies Act, 2013 and Insolvency and Bankruptcy Code, 2016).42 The draft Bill seeks to: (i) reduce the risk in asset-based financing and leasing transactions, and (ii) reduce cost of aviation credit, and (iii) reduce lease rentals of aircraft.42
The draft Bill will apply to: (i) a debtor situated in India, (ii) a seller situated in India, and (iii) an aircraft object which is located in India or, an aircraft registered in India. The Bill will apply even if the creditor is situated in a country, which is not a party to the Convention/Protocol. Key features of the Bill are:
Comments on the draft Bill are invited until May 13, 2022.
Road Transport and Highways
Rajat Asthana (rajat@prsindia.org)
Rules amending validity of renewed fitness certificate for transport vehicles notified
The Ministry of Road Transport and Highways notified amendments to the Central Motor Vehicles Rules, 1989.[43],[44] The 2022 Rules have been framed under the provisions of the Motor Vehicles Act, 1988.[45] The 1988 Act mandates transport vehicles to carry a certificate of fitness.45 As per the 1989 Rules, the renewed fitness certificates for all transport vehicles are valid for a year.[46] The 2022 Rules amend this to prescribe validity based on age of the transport vehicle.
The renewed fitness certificate will be valid for: (i) two years, for transport vehicles up to eight years old, and (ii) one year, for transport vehicles older than eight years. Further, the 2022 Rules specify that the fitness test for certain vehicles (such as heavy goods vehicles or heavy passenger vehicles) must be done through an Automated Testing Station, from June 1, 2024.
Criteria for allocation of funds for development of state roads amended
The Ministry of Road Transport and Highways amended the criteria for allocation of funds for development of state roads under the Central Road and Infrastructure Fund Act, 2000.[47] The 2000 Act establishes the Central Road and Infrastructure Fund, which may be utilised for development and maintenance of National Highways, state roads, rural roads, and other infrastructure.[48] Under the Act, a committee headed by the Finance Minister formulates the criteria for allocation of funds for development and maintenance of state road projects.48
The criteria for fund allocations include: (i) roads which might be declared as new National Highways, (ii) inter-state roads and roads which are economically important, and (iii) roads connecting National Highways with particular focus on safety and traffic decongestion. The amendments introduce additional criteria for fund allocation to states, which include: (i) connectivity to airports, pilgrim and tourist centres, monuments and heritage places, (ii) wayside amenities (rest areas, food courts), and road side utility ducts beside National Highways (for optical fibre cable), and (iii) PM GatiShakti framework for identification, sanction, and implementation of projects.
Communications
Saket Surya (saket@prsindia.org)
Project for 4G mobile services at security sites in left-wing extremism areas approved
The Union Cabinet approved a project for upgrading 2G mobile services to 4G services at certain security sites in left-wing extremism areas.[49] Under this project, 2,343 sites in these areas will be upgraded. The total estimated cost of this project is Rs 1,885 crore. This includes the cost for operation and maintenance for five years. BSNL will execute this project and maintain the sites for another five years at its own cost.
The project will be funded through Universal Service Obligation Fund (USOF). USOF has been set up under the Indian Telegraph Act, 1885 to provide widespread, non-discriminatory, and affordable access to quality information and communication technology services to people in rural and remote areas.[50],[51] Resources for USOF are raised through a levy on the revenue of all the telecom operators under various licenses.
TRAI releases recommendations on the auction of spectrum for mobile services
Telecom Regulatory Authority of India (TRAI) released its recommendations on the auction of spectrum for mobile broadband services including that for 5G networks.[52] In September 2021, the Department of Telecommunications (DoT) had sought recommendations from TRAI on issues such as: (i) applicable reserve price, band plan, block size, the quantum of spectrum to be auctioned, and conditions for the auction, and (ii) earmarking for private captive network, method of allocation, and pricing. Key recommendations of TRAI are:
Media and Broadcasting
Saket Surya (saket@prsindia.org)
TRAI seeks views on issues related to media ownership
Telecom Regulatory Authority of India (TRAI) released a consultation paper on ‘Issues relating to Media Ownership’.[53] TRAI noted that the core idea of active citizenry in a democracy requires the presence of diverse voices and perspectives in public debates. The concentration of media ownership may adversely impact the above. TRAI received a reference from the Ministry of Information and Broadcasting to provide recommendations on issues such as cross-media ownership and vertical integration in the broadcasting sector. Vertical integration refers to the same entity controlling the two businesses of content development and distribution to consumers.
TRAI observed that the media industry has expanded in an unprecedented manner. In addition to conventional television and print media, the industry now comprises digital media portals for news and entertainment. The proliferation of digital media increases the opportunities for people to use diverse sources and encounter different perspectives. At the same time, digital media is marked by the dominance of a limited number of very large players who also have the means to consolidate by acquiring small players. This can lead to market concentration risks.
TRAI sought views on the following key issues: (i) the need for monitoring cross-media ownership and control, and the administrative structure for such monitoring, (ii) the need for additional regulatory mechanisms apart from those under agencies like the Competition Commission of India and SEBI in matters of competition in media, (iii) methods of measuring market concentration in the sector, (iv) media segments where viewpoint plurality should be considered essential, and (v) whether regulators should be empowered to restrain any entity from entering media sector in public interest, and restrict entities from having cross-media ownership.
Comments are invited until May 10, 2022.
Consumer Affairs
Tanvi Vipra (tanvi@prsindia.org)
Cabinet approves distribution of fortified rice across government schemes
The Union Cabinet approved the supply of fortified rice through the public distribution system across the country by 2024.[54] Rice fortification is a process where micronutrients such as iron, folic acid, and Vitamin B12 are added to rice for overcoming the problem of malnutrition.[55] The scheme will be implemented in three phases as depicted in Table 2.
Table 2: Phases under the scheme for supply of fortified rice
Phase |
Schemes to be covered |
Deadline |
I |
Integrated Child Development Services (ICDS) and Pradhan Mantri Poshan Shakti Nirman (PM-POSHAN, earlier Mid-Day Meal Scheme) schemes in all districts |
March 2022 (under implementation) |
II |
Targeted Public Distribution System (TPDS) and other welfare schemes in all aspirational and high burden districts on stunting |
March 2023 |
III |
TPDS and other welfare schemes in remaining districts |
March 2024 |
Source: Press Information Bureau; PRS.
The central government will bear the cost of fortification as part of food subsidy till June 2024 (an estimated Rs 2,700 crore annually).
Stock limits extended to all states on all edible oils and oilseeds till December 2022
The Ministry of Consumer Affairs, Food and Public Distribution extended stock limits on all edible oils and oilseeds from February 3, 2022 till December 31, 2022.[56] The order was issued under the Essential Commodities Act, 1955, which empowers the central government to control the production, supply, distribution, storage, and trade of essential commodities. Stock limits are generally imposed to control the price of essential commodities. The stock limits are as follows (see Table 3):
Table 3: Stock limits on edible oil and oilseeds
Commodity |
Stock limits (in quintal) |
Processor |
|
Retail |
Wholesale |
||
Edible oil* |
30 |
500 |
90 days of storage capacity |
Edible oilseeds |
100 |
2,000 |
90 days production of edible oil |
Note: *Stock limits also imposed on bulk consumers (30 quintals for retail outlets, and 1,000 quintals for depot).
Source: Ministry of Consumer Affairs, Food and Public Distribution; PRS.
Six states (Uttar Pradesh, Karnataka, Himachal Pradesh, Telangana, Rajasthan and Bihar) had issued their own control orders, which have been brought under the purview of the amending order. The central government has appointed eight teams for ensuring compliance.[57] 56% of edible oil consumption in the country is met through imports. The stock limits have been imposed to curb rising edible oil prices due to supply chain disruptions.
Mining
Saket Surya (saket@prsindia.org)
Window to surrender non-operational government coal mines approved
The Union Cabinet approved a one-time window for government companies to surrender non-operational coal mines.[58] No penalty will be applicable for such surrender and no reason needs to be cited. This is aimed at securing the release of several coal mines that government companies are not in a position to develop or are disinterested in developing. This option will be available for a three-month window. The surrendered mines will be made available to other entities through auction.
As per the press note, till December 2021, 45 mines out of 73 coal mines allotted to government companies, remained non-operational.58 The due date for commencement of mining operations in case of 19 coal mines had already got over.58 Reasons for delays include issues with land acquisition, mismatch in assessed and actual availability of coal resources, and law and order.
Policy for use of non-minable land acquired under the Coal Bearing Areas Act approved
The Union Cabinet approved the policy for use of non-minable land acquired under the Coal Bearing Areas (Acquisition and Development) Act, 1957.[59] The Act provides for the acquisition of coal-bearing lands and their vesting in a government company. Under the policy, the following types of land acquired under the Act will be made available for other uses: (i) land no longer suitable or economical for coal mining activities, (ii) land from which coal has been mined out, and such land has been reclaimed. The government company owning the land will lease these lands for specified activities including: (i) setting up coal or energy-related infrastructure such as coal washeries, coal handling plants, railway sidings, power projects, and coal gasification plants, and (ii) rehabilitation and resettlement of families affected due to acquisition of land under this Act or any other law. The lease will be given through a competitive bidding process.
Power
Saket Surya (saket@prsindia.org)
Draft Battery Swapping Policy released for public feedback
NITI Aayog released the draft Battery Swapping Policy for public feedback.[60] It noted that electric vehicles are traditionally purchased with fixed batteries. Battery swapping is an alternative which involves exchanging discharged batteries for charged ones and provides flexibility to charge them separately. This de-links charging and battery usage, and keeps the vehicle in operational mode with negligible downtime. NITI Aayog noted that battery swapping offers the following key advantages: (i) reduction in vehicle downtime, and (ii) reduction in the requirement for space for charging stations. It observed that battery swapping is generally used for smaller vehicles such as two-wheelers and three-wheelers. Although, solutions are emerging for four-wheelers and electric buses too. The draft Policy aims to promote large-scale adoption of battery swapping technology. Key features of the draft Policy are:
Comments are invited until June 5, 2022.
The Electricity (Rights of Consumers) Amendment Rules, 2022 notified
The Ministry of Power notified the Electricity (Rights of Consumers) Amendment Rules, 2022.[61] These Rules amend the Electricity (Rights of Consumers) Rules, 2020 issued under the Electricity Act, 2003.[62] The 2020 Rules specify the rights of consumers and obligations of electricity distribution licensee on various aspects of electricity distribution (such as providing connection, metering, and billing). Key amendments include:
Health
Rajat Asthana (rajat@prsindia.org)
Consultation paper for provider payments and price setting under PM-JAY released
The National Health Authority invited public feedback on provider payments and price setting under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana Scheme (PM-JAY).[63] PM-JAY provides health insurance (of up to five lakh rupees per year per family) to poor and vulnerable families, for accessing secondary and tertiary healthcare services through empanelled healthcare providers.[64] PM-JAY pays healthcare providers a fixed rate (as defined in the health packages), for a bundled set of services (such as ICU with ventilator, radio oncology, appendectomy).[65] Key aspects regarding payments to healthcare providers are: (i) mode of payment, and (ii) the amount of payment. There are four types of provider payment methods: capitation, fee-for-service, case-based, and global budget (Table 4).
Table 4: Provider Payment Methods
Capitation |
Providers are paid a fixed payment for a defined population over a defined period of time, for providing a given set of services. The payment is directly related to the total enrolment under the provider. |
Fee-for-service |
Providers are paid a fixed payment, retrospectively, for each unit of individual services, procedures, tests, medicines delivered or prescribed. |
Case-based |
Patients are categorised based on factors like diagnosis and treatment procedures. Providers are paid a fixed rate for every admission per category. |
Global budget |
Providers are paid a fixed amount for a defined period, and a defined set of services. The payment is not linked with the actual number of patients treated or services provided. |
Source: Consultation Paper on Provider Payments, NHA; PRS.
Key issues on which views are invited include: (i) the suitability of diagnosis related groups for patients of different age, gender, and co-morbidity, (ii) suitability of methods selected for medical and surgical packages, and (iii) price for high end drugs, consumables, and implants.
Diagnosis related groups are a form of case-based payment system, in which cases are grouped according to the condition treated and the resources used for treatment. The grouping is based on the World Health Organisation’s international classification of diseases.
Comments invited on draft Health Data Management Policy
The National Health Authority invited public feedback on the Draft Health Data Management Policy, under the Ayushman Bharat Digital Mission.[66] The Mission was launched by the central government in September 2021.[67] As per the Mission, citizens will be able to create their Ayushman Bharat Health Account numbers (created with KYC using Aadhaar or any other digital system) which can be linked to their digital health records on a voluntary basis. Further, digital health service providers will be able to offer diverse service options on a single digital platform. The Policy lays down minimum standards for data privacy protection to ensure compliance with relevant laws. It also seeks to achieve interoperability amongst all parts of the digital health ecosystem. Key features of the Policy are:
Comments are invited until May 21, 2022.
Defence
Defence Acquisition Procedure 2020 amended
The Defence Acquisition Procedure, 2020 was amended to promote indigenous production of defence equipment.[68] The Defence Acquisition Procedure, 2020 (erstwhile Defence Procurement Procedure) ensures timely acquisition of military equipment required by the armed forces.[69] Further, it seeks to promote ‘Make in India’ in defence equipment procurement. Key features of the amendments include:
Rural Development
Continuation of Rashtriya Gram Swaraj Abhiyan approved
The Cabinet Committee on Economic Affairs (CCEA) approved the continuation of the revamped centrally sponsored Scheme of Rashtriya Gram Swaraj Abhiyan (RGSA) during 2022-26.[70] RGSA aims to strengthen Panchayati Raj Institutions (PRIs) for achieving Sustainable Development Goals (SDGs).[71] The scheme will be applicable to all states and UTs.
The revamped scheme aims to enhance the capacities of elected representatives of PRIs to deliver on SDGs at a local level (such as poverty free villages, healthy village, child friendly village). It also aims to: (i) converge capacity building initiatives of other Ministries, (ii) provide evidence-based studies for PRIs, and (iii) undertake activities related awareness generation and dissemination of government policies. No permanent posts will be created under the Scheme. However, need based contractual human resources may be provisioned for overseeing the implementation of the scheme.
The revamped scheme will comprise of central and state components (funding pattern will be in the ratio of 60:40 among centre and state respectively). The estimated cost for the scheme for 2022-26 is estimated to be Rs 5,911 crore. Central share will be Rs 3,700 crore, while the state share will be Rs 2,211 crore.
Tribal Affairs
Shubham Dutt (shubham@prsindia.org)
Bills to amend lists of SCs and STs in Jharkhand and Tripura passed
The Constitution (Scheduled Castes and Scheduled Tribes) Orders (Amendment) Bill, 2022 was passed by Parliament.[72] The Bill includes certain communities in the list of STs in Jharkhand. These are the Deshwari, Ganjhu, Dautalbandi (Dwalbandi), Patbandi, Raut, Maajhia, Khairi, Tamaria, and Puran communities. Further, the Bill omits the Bhogta community from the list of SCs in Jharkhand. The community is instead being included in the list of STs in the state.
The Constitution (Scheduled Tribes) Order (Amendment) Bill, 2022 was also passed.[73] The Bill includes the Darlong community as a sub-tribe of the Kuki tribe in the list of STs in Tripura.
For a PRS summary of the Bills, please see here and here respectively.
Bill to recognise Gond community as an ST in Uttar Pradesh passed by Lok Sabha
The Constitution (Scheduled Tribe and Scheduled Caste) Orders (Second Amendment) Bill, 2022 was passed by Lok Sabha.[74] The Bill amends the Constitution (Scheduled Tribes) (Uttar Pradesh) Order, 1967 and the Constitution (Scheduled Castes) Order, 1950 in its application to Uttar Pradesh. The Bill transfers the Gond community from the list of SCs to the list of STs in four districts of Uttar Pradesh: (i) Chandauli, (ii) Kushinagar, (iii) Sant Kabir Nagar, and (iv) Sant Ravidas Nagar.
For a PRS Bill Summary, please see here.
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