Highlights of this Issue
Second phase of Budget Session commences and Union Budget presented
The second phase of the Budget Session commenced on March 2, 2020 and will last until April 3, 2020. Further, the 2020-21 Union Budget was presented. The government proposes to spend Rs 30,42,230 crore in 2020-21.
Gross Domestic Product grows at 4.7% in the third quarter of 2019-20
The GDP grew at 4.7% in the third quarter of 2019-20, over the corresponding period a year ago. The growth estimate for the second quarter was revised upward to 5.1%.
The Direct Tax Vivad se Vishwas Bill, 2020 introduced in Lok Sabha
The Bill provides a mechanism for resolution of pending tax disputes. Under the mechanism, the appellant is required to pay a specified amount to resolve disputes, with an additional amount payable after March 2020.
Supreme Court rules in favour of permanent commission to women in the Army
The Court directed that at the stage of opting for the grant of permanent commission, women officers shall be entitled to same choices as their male counterparts. The judgement applies to all non-combat services of the Army.
Committee reports on Occupational Safety Code and Surrogacy Bill submitted
Recommendations on the Occupational Safety Code include clear indication of the powers of the state government. The report on the Surrogacy Bill suggested that any willing mother should be allowed to act as a surrogate.
Adhoc Committee on issue of pornography and its effect on children submits report
Recommendations include: (i) the term sexually explicit should be clearly defined, (ii) ‘grooming’ of children should be considered an offence, and (iii) awareness campaigns on cyber bullying should be initiated.
Draft Competition (Amendment) Bill, 2020 released for comments
Key provisions include: (i) expanding the definition of cartels to include buyer cartels, (ii) provisions for settling cases with the Competition Commission of India, and (iii) establishment of a Governing Board.
Cabinet approves revised guidelines for central crop insurance schemes
Enrolment under the schemes has been made voluntary for all farmers. Flexibility will be given to states to select additional risk covers and offer single-risk insurance with or without opting for the base cover.
Department of Fisheries releases the draft National Fisheries Policy
The Policy integrates the various policies on fisheries for its holistic development. Comprehensive management and regulation of fisheries resources in the Exclusive Economic Zone will be ensured through a national law.
Ease of Living Index and Municipal Performance Index 2019 launched
These indices will assess the quality of life of citizens in 100 Smart Cities and 14 other million plus cities. The assessment will be across various indicators such as quality of life, economic ability and sustainability.
Draft Battery Waste Management Rules, 2020 released for public feedback
The Ministry of Environment, Climate and Forest Change released the Draft Battery Waste Management Rules, 2020, under which certain responsibilities have been specified for manufacturers and dealers of batteries.
DICGC increases insurance coverage for all depositors in insured banks
The Deposit Insurance and Credit Guarantee Corporation has raised deposit insurance cover for depositors in insured banks from one lakh rupees to five lakh rupees.
Parliament
Anya Bharat Ram (anya@prsindia.org)
Second phase of Budget Session commences
The first phase of the Budget Session lasted from January 31st to February 11th (seven sitting days). The second phase of the Budget Session commenced on March 2, 2020 and will last until April 3, 2020 (24 sitting days).
The legislative agenda for the Budget Session included 14 Bills for consideration and passing and 28 Bills for introduction, consideration and passing. Of these, three Bills were introduced in Lok Sabha. These include: (i) the Aircraft (Amendment) Bill, 2020, (ii) the Direct Tax Vivad se Vishwas Bill, 2020, and (iii) the Institute of Teaching and Research in Ayurveda Bill, 2020. Further, the Constitution (Scheduled Tribes) Order (Second Amendment) Bill, 2019 was passed by both Houses.
In Lok Sabha, the demand for grants of six ministries will be discussed. These include: Ministry of Railways, Ministry of Health and Family Welfare, and Ministry of Tourism. Rajya Sabha will discuss the working of five ministries including: Ministry of Rural Development, and Ministry Law and Justice.
For details of the legislative agenda during the session, see here. For an analysis of the expenditure of the top 13 ministries, see here.
Union Budget 2020-21
Anya Bharat Ram (anya@prsindia.org)
Union Budget 2020-21 presented
The Finance Minister, Ms. Nirmala Sitharaman presented the 2020-21 Union Budget. [1] Key highlights from the Budget include:
Table 1: Budget 2020-21 (in Rs crore)
Items |
Revised 2019-20 |
Budgeted 2020-21 |
% change |
Total Expenditure |
26,98,552 |
30,42,230 |
12.7% |
Total Receipts (without borrowings) |
19,31,706 |
22,45,893 |
16.3% |
Fiscal Deficit (borrowings) |
7,66,846 |
7,96,337 |
3.8% |
% of GDP |
3.8 |
3.5 |
|
Revenue Deficit |
4,99,544 |
6,09,219 |
22.0% |
% of GDP |
2.4 |
2.7 |
|
Sources: Budget at a Glance, Union Budget 2020-21; PRS.
Besides the overall financial outlay, the budget also provides details of tax proposals in the Finance Bill. In this budget, a new option of lower income tax rates has been proposed. Other proposals include changes to the payment of the dividend distribution tax, introduction of a ceiling on deductions for social security contributions, and a change in the determination of residence within the country.
For an analysis of the Union Budget 2020-21 and the expenditure of the top 13 ministries, see here.
Macroeconomic Development
Gayatri Mann (gayatri@prsindia.org)
GDP grows at 4.7% in the third quarter of 2019-20
The Gross Domestic Product (GDP) (at constant prices) of the country grew at 4.7% in the third quarter (October-December) of 2019-20, over the corresponding period a year ago. [2] The year-on-year growth rates for the first two quarters were revised upwards: Q1 to 5.6% (from 5%), and Q2 to 5.1% (from 4.5%), mainly due to a downward revision of the base year. The quarterly trend is shown in Figure 1.
Figure 1: GDP growth (in %, year-on-year)
Sources: MOSPI; PRS.
GDP growth across economic sectors is measured in terms of Gross Value Added (GVA). The growth rate of combined GVA by all sectors decreased from 5.6% in the third quarter of 2018-19 to 4.5% in the third quarter of 2019-20. In comparison to the third quarter last year, the growth rate of GVA decreased for all sectors, except agriculture, mining, and services. It increased from 2% to 3.5% for agriculture, and from -4.4% to 3.2% for mining. The growth in services sector remained the same at 7.4%. Details on sectoral GVA growth are given in Table 2.
Table 2: Gross Value Added across sectors in Q3 of 2019-20 (% growth year-on-year)
Sector |
Q3 |
Q2 |
Q3 |
2018-19 |
2019-20 |
2019-20 |
|
Agriculture |
2.0% |
3.1% |
3.5% |
Mining |
-4.4% |
0.2% |
3.2% |
Manufacturing |
5.2% |
-0.4% |
-0.2% |
Electricity |
9.5% |
3.9% |
-0.7% |
Construction |
6.6% |
2.9% |
0.3% |
Services |
7.4% |
7.3% |
7.4% |
GVA |
5.6% |
4.8% |
4.5% |
GDP |
5.6% |
5.1% |
4.7% |
Note: GVA is GDP without taxes and subsidies, at basic prices (2011-12 base year).
Sources: MOSPI; PRS.
The government also released the second advance estimates of the GDP growth in 2019-20. The GDP (at constant prices) is estimated to grow at 5% in 2019-20. This is estimated to be lower than the 6.1% growth rate estimated for 2018-19.
Repo and reverse repo rate unchanged at 5.15% and 4.90% respectively
The Monetary Policy Committee (MPC) released its sixth Bi-Monthly Monetary Policy Statement of 2019-20. [3] The policy repo rate (the rate at which the Reserve Bank of India (RBI) lends money to banks) remains unchanged at 5.15%. Other decisions of the MPC include:
Industrial production declined by 0.9% in the third quarter of 2019-20
The Index of Industrial Production (IIP) declined by 0.9% in the third quarter (Oct-Dec) of 2019-20, as compared to the same period in 2018-19. [4] The electricity sector declined by 6%, whereas the manufacturing and mining sectors declined by 0.3% and 0.2%, respectively. Figure 2 shows the year-on-year growth in industrial production, overall and across sectors, for the third quarter of 2019-20.
Figure 2: Growth in IIP in the third quarter of 2019-20 (year-on-year)
Sources: MOSPI; PRS.
Finance
The Direct Tax Vivad se Vishwas Bill, 2020 introduced in Lok Sabha
Suyash Tiwari (suyash@prsindia.org)
The Direct Tax Vivad se Vishwas Bill, 2020 was introduced in Lok Sabha. [5] The Bill provides a mechanism for resolution of pending tax disputes related to income tax and corporation tax. Key features of the Bill include:
Table 3: Payment for dispute resolution
Disputes relating to |
Payable before March 31, 2020 |
Additional amount payable after March 31, 2020 |
Payment of tax |
|
(i) 10% of the amount of disputed tax, or (ii) interest and penalty relating to that tax, whichever is lower |
Payment of fee, interest, or penalty |
25% of the amount under such dispute |
Another 5% of the amount under such dispute |
For a PRS Bill summary, see here.
15th Finance Commission constitutes Groups on defence and internal security, and agriculture exports
Suyash Tiwari (suyash@prsindia.org)
The 15th Finance Commission (Chair: Mr. N. K. Singh) has constituted two Groups on defence and internal security, and agriculture exports in pursuance of its terms of reference. [6],[7]
Group on Defence and Internal Security: This Group will examine if a separate funding mechanism for defence and internal security should be set up, and if so, the manner of operationalising it. It consists of: (i) Mr. N. K. Singh, as the Chairman of the Group, (ii) Mr. A. N. Jha, Member, 15th Finance Commission, (iii) Secretary, Ministry of Home Affairs, (iv) Secretary, Ministry of Defence, and (v) Secretary (Expenditure), Ministry of Finance.
Expert Group on Agriculture Exports: This Group will suggest performance-based incentives for states for the period 2021-22 to 2025-26, with the aim of increasing agriculture exports and promoting crops that can enable high import substitution. Other terms of reference are: (i) assessing export and import substitution opportunities for Indian agricultural products and suggesting appropriate measures, (ii) recommending measures for higher farm productivity, value addition, and waste reduction, and strengthening logistics infrastructure, and (iii) identifying impediments for private investment along the value chain and suggesting appropriate policies and reforms. The Expert Group is required to submit its recommendations within three months.
DICGC increases insurance coverage for all depositors in insured banks
Anurag Vaishnav (anurag@prsindia.org)
The Deposit Insurance and Credit Guarantee Corporation (DICGC) has raised the limit of deposit insurance cover for depositors in insured banks (any commercial or cooperative bank) from one lakh rupees to five lakh rupees. [8] Deposit insurance is the insurance cover a bank depositor can claim in the event of liquidation or cancellation of a bank’s license. [9]
Cabinet approves capital infusion for three public sector insurance companies
Anurag Vaishnav (anurag@prsindia.org)
The Union Cabinet has approved capital infusion of Rs 2,500 crore for three public sector general insurance companies: (i) Oriental Insurance Company Limited, (ii) National Insurance Company Limited, and (iii) United India Insurance Company Limited. [10]
This was done in light of the critical financial position and breach of regulatory solvency requirements by these companies. Note that the Insurance Regulatory and Development Authority prescribes a minimum solvency ratio of 150%. [11] The solvency ratio is the excess of assets over liabilities for an insurance provider. [12]
RBI releases draft framework for authorisation of new umbrella entity for retail payment systems
Anurag Vaishnav (anurag@prsindia.org)
The Reserve Bank of India (RBI) has released the draft framework for authorisation of a pan-India New Umbrella Entity for retail payment systems. [13] This body will be authorised to operate payment systems, under the Payments and Settlements Act, 2007.
The body will be responsible for: (i) setting up, managing and operating new payment systems in the retail space, (ii) identifying and managing risks such as settlement, credit, liquidity and operational risks, (iii) monitoring domestic and international developments related to retail payment systems, and (iv) enhancing awareness about payment systems.
The body will be setup with a minimum paid-up capital of Rs 500 crore. Any entity holding more than 25% of the paid-up capital will be considered as a promoter. No single promoter shall have more than 40% investment in the paid-up capital.
RBI makes external benchmarking mandatory for floating rate loans to medium enterprises
Anurag Vaishnav (anurag@prsindia.org)
The Reserve Bank of India (RBI) has made it mandatory for banks to link all new floating rate loans to medium enterprises to an external benchmark from April 1, 2020. [14] Floating rate loans are loans with variable interest rates. Currently, the banks’ lending rates are based on internal benchmarks such as either the base rate or the marginal cost of funds based lending rate. A Study Group of RBI (2017) had observed that internal benchmarks such as the base rate and marginal cost of funds-based lending rate have not delivered effective transmission of monetary policy. [15] It recommended switching to an external benchmark in a timely manner.
In September 2019, RBI had mandated banks to link all new floating rate loans to micro and small enterprises (MSEs) to an external benchmark. [16] Note that MSEs are enterprises where the investment in plant and machinery is up to five crore rupees, whereas a medium enterprise is an enterprise where the investment is between five to ten crore rupees. [17]
For external benchmarking, the banks can choose from the following rates: (i) RBI repo rate (rate at which RBI lends to commercial banks), (ii) three-month treasury bill yield published by the Financial Benchmarks India Private Limited (FBIL), (iii) six-month treasury bill yield published by FBIL, or (iv) any other benchmark market interest rate published by the FBIL. Banks are not allowed to lend below the benchmark rate.
Transport
Prachee Mishra (prachee@prsindia.org)
Aircraft (Amendment) Bill, 2020 introduced in Lok Sabha
The Aircraft (Amendment) Bill, 2020 was introduced in Lok Sabha. [18] It seeks to amend the Aircraft Act, 1934. The Act regulates the manufacture, possession, use, operation, sale, import and export of civil aircrafts, and licensing of aerodromes. Key provisions of the Bill include:
For a PRS summary of the Bill, see here.
Health
Select Committee on the Surrogacy (Regulation) Bill, 2019 submits report
Prachi Kaur (prachi@prsindia.org)
The Select Committee on the Surrogacy (Regulation) Bill, 2019 (Chair: Mr. Bhupender Yadav) submitted its report. [19] Surrogacy is the practice where one woman carries the child for another with the intention of handing over the child after birth. Key observations of the Committee are:
For a PRS report summary, see here. For an analysis of the Bill, see here.
Cabinet approves Assisted Reproductive Technology Regulation Bill, 2020
Gayatri Mann (gayatri@prsindia.org)
The Union Cabinet approved the introduction of the Assisted Reproductive Technology Regulation Bill, 2020. [20] The Bill seeks to regulate assisted reproductive technology services in the country. Assistive reproductive technology (ART) means all techniques that attempt to obtain a pregnancy by handling the sperm (the oocyte) outside the human body and transferring the gamete (the embryo) into the reproductive tract of a woman. This includes in-vitro fertilisation, intrauterine insemination, and gestational surrogacy.
Note that, a copy of the Bill is not available in the public domain. As per the press release, the Bill sets up a National Board to regulate ART services by: (i) laying down a code of conduct to be observed by persons working at clinics, and (ii) setting the minimum standards of physical infrastructure, laboratory and diagnostic equipment, and expert manpower to be employed by clinics and banks.
Further, the Bill provides for a National Registry and Registration Authority to maintain a central database of all ART Banks and clinics. The Bill also proposes a stringent punishment for those practising sex selection, sale of human embryos or gametes, and running organisations for such unlawful practices.
Draft Drugs and Magic Remedies (Objectionable Advertisements) Amendment Bill, 2020 released
Gayatri Mann (gayatri@prsindia.org)
The Ministry of Health and Family Welfare released the draft Drugs and Magic Remedies (Objectionable Advertisements) (Amendment) Bill, 2020. [21] The Bill amends the Drugs and Magic Remedies (Objectionable Advertisements) Act, 1954 which controls the advertisement of certain drugs in India. Key amendments proposed include:
Comments on the draft Bill have been invited within 45 days from February 3, 2020.
Ministry notifies medical equipment used on humans or animals as ‘drugs’
Gayatri Mann (gayatri@prsindia.org)
The Ministry of Health and Family Welfare recently notified all medical equipment intended for use on human beings or animals as ‘drugs’ under the Drugs and Cosmetics Act, 1940. [22] This will come effect from April 1, 2020.
As per the notification, all devices including all instruments, apparatus, appliances and implants, used alone or in combination for several purposes will be covered. These purposes include: (i) diagnosis, prevention, monitoring, or treatment of any disease, (ii) investigation, replacement, or modification of the anatomy, and (iii) supporting or sustaining life will.
In addition, the Ministry notified the Medical Devices (Amendment) Rules 2020 which provide for mandatory registration of medical devices. [23] The notification also provides timelines by when all medical devices of varying risks should be registered.
AYUSH
Anurag Vaishnav (anurag@prsindia.org)
Institute of Teaching and Research in Ayurveda Bill, 2020 introduced
The Institute of Teaching and Research in Ayurveda Bill, 2020 was introduced in Lok Sabha. [24] The Bill seeks to merge three Ayurveda institutes into one institution by the name of Institute of Teaching and Research in Ayurveda. The Bill declares the Institute to be an institution of National Importance.
For a PRS Bill summary, see here.
Education
Gayatri Mann (gayatri@prsindia.org)
Cabinet approves the Indian Institutes of Information Technology Laws (Amendment) Bill, 2020
The Union Cabinet approved the introduction of the Indian Institutes of Information Technology Laws (Amendment) Bill, 2020. [25] The Bill seeks to amend the Indian Institutes of Information Technology Act, 2014, and the Indian Institutes of Information Technology (Public-Private Partnership) Act, 2017.
The Bill declares five Indian Institutes of Information Technology (IIITs) set up under Public Private Partnership mode in Surat, Bhopal, Bhagalpur, Agartala, and Raichur as Institutions of National Importance. Currently, these institutes are registered as Societies under the Societies Registration Act, 1860 and do not have the power to grant degrees or diplomas. On being declared Institutions of National Importance, the five institutes will be granted the power to grant degrees such as Bachelor of Technology, Master of Technology, and Ph.D.
Corporate Affairs
Roshni Sinha (roshni@prsindia.org)
Draft Competition (Amendment) Bill, 2020 released for comments
The Ministry of Corporate Affairs released the draft Competition (Amendment) Bill, 2020 for public feedback. [26] In July 2019, a Competition Law Review Committee (Chair: Mr. Injeti Srinivas) submitted its report recommending amendments to the Competition Act, 2002. The Draft Bill proposes several amendments to the Act based on the recommendations of the Committee. Key features of the Draft Bill include:
Comments on the Draft Bill are invited till March 6, 2020.
Consultation paper on audit independence and accountability released
The Ministry of Corporate Affairs released a consultation paper to recommend amendments to existing laws in order to enhance audit independence and accountability. [27] Comments on the paper are invited till March 15, 2020.
The paper identified five threats to auditor’s independence. These are: (i) self-interest threat due to the auditor’s reliance on the fee from the client, (ii) self-review threat if the auditor is auditing his own work, (iii) advocacy threat if they promote the client, (iv) familiarity threat if the auditor had a long or close relationship with a client or employer, and (v) intimidation threat if the auditor’s objectivity is hampered due to intimidation by the client. In this context, the consultation paper raised the following questions:
The Ministry also proposed a ‘Composite Audit Quality Index’ to improve accountability of auditors and audit firms. Suggestions were invited on what qualitative and quantitative parameters should be included in such an index, how they should be measured, and which companies should this be mandated for.
Labour and Employment
Anya Bharat Ram (anya@prsindia.org)
Standing Committee submits report on Occupational Safety, Health and Working Conditions Code, 2019
The Standing Committee on Labour submitted its report on the Occupational Safety, Health and Working Conditions Code, 2019. [28] The Code subsumes and replaces 13 existing labour laws relating to health, safety and working conditions.
For a PRS report summary, see here.
Social Justice and Empowerment
Anya Bharat Ram (anya@prsindia.org)
Adhoc Committee on the issue of pornography on social media and its effect on children submits report
The Adhoc Committee of the Rajya Sabha (Chair: Mr. Jairam Ramesh) constituted to study the issue of pornography on social media and its effect on children and society, submitted its report. [29] Key recommendations of the Committee include:
For a PRS report summary, see here.
Law and Justice
Roshni Sinha (roshni@prsindia.org)
Cabinet approves constitution of the 22nd Law Commission for three years
The Union Cabinet approved the constitution of the 22nd Law Commission of India for a period of three years. [30] It will consist of: (i) Chairperson, (ii) four members, (iii) Secretaries of the Legislative Department and the Department of Legal Affairs, as ex-officio members, and (iv) up to five part-time members.
The Commission’s responsibilities will include: (i) identifying laws which are no longer relevant, (ii) recommending laws which are necessary to implement the Directive Principles of State Policy, (iii) giving its views on subjects referred to it by the government, and (iv) revising central laws of general importance to simplify them.
Agriculture
Suyash Tiwari (suyash@prsindia.org)
Cabinet approves revised guidelines for central crop insurance schemes
The Union Cabinet approved revised guidelines for central crop insurance schemes, namely the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather Based Crop Insurance Scheme, with the aim of addressing the existing implementation challenges. [31] The crop insurance schemes provide insurance coverage to farmers for crop failure due to various risks such as calamities, adverse weather conditions, pest attacks, and other yield and post-harvest losses. Following are the key changes proposed under the revised guidelines:
The revised guidelines will be effective from the Kharif season 2020-21.
Cabinet approves a central scheme for formation and promotion of FPOs
The Union Cabinet approved the central scheme ‘Formation and Promotion of Farmer Producer Organizations (FPOs)’, which aims to form and promote 10,000 new FPOs by 2023-24. [32] FPOs are groups of farmers set up with the aim of using economies of scale to get better access to inputs, credit, technology, and marketing, and thus, have a better income realisation.
The minimum number of farmers required to form an FPO will be 300 in plain areas and 100 in north-eastern and hilly areas. This may be revised with the approval of the Union Agriculture Minister. Priority will be given to formation of FPOs in the aspirational districts, with at least one FPO in each block of these districts. FPOs will be promoted under the concept ‘One District One Product’ to promote better processing, marketing, branding, export, and specialisation.
Under the scheme, each FPO will be provided support for a period of five years from its year of inception. An amount of Rs 6,865 crore has been approved for the scheme. Equity grants will be provided to FPOs to strengthen their equity base. Further, credit guarantee funds of up to Rs 1,500 crore will be set up for providing a suitable guarantee cover for loans granted by financial institutions to FPOs.
Tree implementing agencies will form and promote FPOs, namely Small Farmers Agri-Business Consortium (SFAC), National Cooperative Development Corporation (NCDC), and NABARD. States can also nominate the implementing agency for their state in consultation with the Department of Agriculture, Cooperation and Farmers Welfare.
Draft National Fisheries Policy released
The Department of Fisheries released the draft National Fisheries Policy. [33],[34] The policy aims to integrate the various policies relating to different aspects of fisheries (such as inland fisheries, marine plants and animals, processing, and marketing) for its comprehensive development. Key features of the draft policy include:
Cabinet approves a revised limit for interest subsidy under the DIDF scheme
The Union Cabinet approved an increase in the maximum limit on interest subsidy provided under the scheme Dairy Processing and Infrastructure Development Fund (DIDF). [35] The Fund has been set up to provide subsidised credit to the dairy sector (including milk cooperatives and unions, and milk producer companies) for improving their milk procurement system. The credit given can be used to make investments for setting up the infrastructure and equipment required for testing, storing, processing, and manufacturing milk and milk-based value-added products. Under the scheme, NABARD raises funds from the market and provides credit at an interest rate of 6%. The government provides interest subsidy to NABARD on such credit, which is equivalent to the difference between the 6% rate and the interest rate at which NABARD borrows from the market. This interest subsidy is subject to a maximum limit of 2%, and the rest of the borrowing cost is borne by beneficiaries. The Cabinet has increased this maximum limit on interest subsidy from 2% to 2.5%. The funds approved for providing interest subsidy has been increased from Rs 864 crore to Rs 1,167 crore. Further, credit under the scheme was proposed to be given till 2019-20, which has now been extended till 2022-23.
Second advance estimates of production of crops released for the year 2019-20
The Ministry of Agriculture and Farmers’ Welfare released the second advance estimates of production of foodgrains and commercial crops for the year 2019-20. [36] Table 4 gives a comparison of the second advance estimates for 2019-20 with the production in the year 2018-19. Following are some of the highlights:
Table 4: Second advance estimates of crop production in 2019-20 (million tonnes)
Crop |
Final 2018-19 |
2nd advance estimates 2019-20 |
% change over 2018-19 |
Foodgrains (A+B) |
285.2 |
292.0 |
2.4% |
A. Cereals |
263.1 |
268.9 |
2.2% |
Rice |
116.5 |
117.5 |
0.8% |
Wheat |
103.6 |
106.2 |
2.5% |
Coarse Cereals |
43.1 |
45.2 |
5.1% |
B. Pulses |
22.1 |
23.0 |
4.3% |
Gram |
9.9 |
11.2 |
12.9% |
Tur |
3.3 |
3.7 |
11.1% |
Oilseeds |
31.5 |
34.2 |
8.5% |
Soyabean |
13.3 |
13.6 |
2.7% |
Groundnut |
6.7 |
8.2 |
22.6% |
Cotton* |
28.0 |
34.9 |
24.4% |
Sugarcane |
405.4 |
353.8 |
-12.7% |
*million bales of 170 kg each.
Sources: Directorate of Economics and Statistics, Ministry of Agriculture and Farmers’ Welfare; PRS.
Jal Shakti
Prachi Kaur (prachi@prsindia.org)
Cabinet approves Swachh Bharat Mission (Grameen) Phase-II
The Union Cabinet approved the Phase II of the Swachh Bharat Mission (Grameen) [SBM (G)]. [37] The programme will focus on Open Defecation Free (ODF) Plus, which includes ODF sustainability and solid and liquid waste management. It will be implemented by states as per the operational guidelines issued to them by the central government.
Phase-II will be implemented from 2020-21 to 2024-25 with an outlay of Rs 1,40,881 crore. Of this, Rs 52,497 crore will be allocated from the budget of the Department of Drinking Water and Sanitation. The remaining amount will be generated from funds under MGNREGS and other revenue generation models for solid and liquid waste management.
Under the program, incentive of Rs 12,000 for construction of individual household toilet to eligible households will continue. Financial assistance to gram panchayats for construction of community managed sanitary complex at village level will be increased from two lakh rupees to three lakh rupees, per complex.
The solid and liquid waste management component of ODF Plus will be monitored on the basis of output-outcome indicators for four key areas, which are: (i) plastic waste management, (ii) bio-degradable solid waste management (including animal waste management), (iii) greywater management, and (iv) fecal sludge management.
Textiles
Anya Bharat Ram (anya@prsindia.org)
Cabinet approves creation of National Technical Textiles Mission
The Cabinet Committee on Economic Affairs, approved the National Technical Textiles Mission. [38] Technical textiles are textiles manufactured for technical performance and functional properties rather than aesthetic characteristics. They have applications in areas such as railway tracks and bullet proof jackets.
The Mission will be implemented over a period of four years, from 2020-21 to 2023-24 with a total outlay of Rs 1480 crore. Key components of the Mission include:
Science and Technology
Anurag Vaishnav (anurag@prsindia.org)
Cabinet approves constitution of an empowered technology group
Union Cabinet has approved constitution of a 12-person empowered technology group. [39] The group will be chaired by the Principal Scientific Advisor to the government of India.
The group will be responsible for: (i) advising government on research on emerging technologies, (ii) mapping technology and technology products, (iii) developing roadmap for indigenisation for selected technologies, (iv) advising government on its technology supplier and procurement strategy, and (v) encouraging government departments to develop in-house expertise in emerging technologies such as data science and artificial intelligence.
Defence
Anurag Vaishnav (anurag@prsindia.org)
SC rules in favour of permanent commission to women in the Army
The Supreme Court has ruled in favour of granting permanent commission to all women officers in the Army in its non-combat services. [40]
The services in the Army are broadly classified into: (i) combat arms, (ii) combat support arms, and (iii) services. Currently, women officers are eligible to work in all non-combat services through a Short Services Commission (SSC, for a tenure of 14 years). In February 2019, the Ministry of Defence granted Permanent Commission to SSC women officers in ten services of the Army, such as Signals, Engineers and Army Aviation.
The Court observed that a woman officer who has worked for 14 years does not get pension or retirement benefits. Further, it found that submissions made by the government discriminate against women, as they are based on stereotypes and socially ascribed gender roles.
The Court directed that at the stage of opting for the grant of permanent commission, women SSC officers shall be entitled to same choices at the same terms as their male counterparts. Further, SSC women officers who are granted permanent commission will be entitled to all consequential benefits including promotion and financial benefits. The Court granted the government three months' time to implement the order. Note that the judgement does not apply to combat services of the Army.
Housing and Urban Affairs
Prachee Mishra (prachee@prsindia.org)
Ease of Living Index and Municipal Performance Index 2019 launched
The Ministry of Housing and Urban Affairs launched two assessment frameworks: the Ease of Living Index 2019, and the Municipal Performance Index 2019. [41] These indices will assess the quality of life of citizens in 100 Smart Cities and 14 other million plus cities.
The Ease of Living Index 2019 will assess ease of living of citizens across three categories: quality of life, economic ability and sustainability. These are further divided into 14 categories across 50 indicators. Under this assessment, a Citizen Perception Survey is also being conducted, which will capture the citizens’ perception about the quality of life in their cities.
Under the Municipal Performance Index 2019, the performance of municipalities will be assessed based on five categories. These are service, finance, planning, technology and governance. These have been further divided into 20 sectors which will be evaluated across 100 indicators.
The data across cities will be collected and collated by nodal officers. According to the Ministry, such assessment will help municipalities in better planning and management, filling the gaps in city administration, and improving the livability of cities for its citizens.
Minority Affairs
Anya Bharat Ram (anya@prsindia.org)
Waqf Properties Lease (Amendment) Rules, 2020 notified
The Ministry of Minority Affairs notified the Waqf Properties Lease (Amendment) Rules, 2020. [42] The 2020 Rules amend the Waqf Properties Lease Rules, 2014. The amendments were notified under the Waqf Act, 1995. The Act regulates the management of waqfs (property donations under Muslim law). Key aspects of the amendments include:
Environment and Forests
Prachi Kaur (prachi@prsindia.org)
Draft Battery Waste Management Rules, 2020 released for public feedback
The Ministry of Environment, Climate and Forest Change released the Draft Battery Waste Management Rules, 2020. [43] The Draft Rules seek to replace the Batteries (Management and Handling) Rules, 2001, which provide details for handling and management of batteries under the Environment (Protection) Act, 1986. The 1986 Act regulates the protection and improvement of environment. Key features of the Draft Rules include:
Comments on the draft Rules are invited till April 20, 2020.
Draft regulation on use of membrane based water purification system released for public feedback
The Ministry of Environment, Climate and Forest Change released a draft regulation on the use of membrane based water purification systems. [44] The draft regulation bans the installation and use of certain membrane based water purification systems, known as reverse osmosis (RO) systems. It seeks to amend the Environment (Protection) Rules, 1986 under the Environment (Protection) Act, 1986, which regulates protection and improvement of environment. Key features of the draft regulation include:
Comments on the draft regulation are invited till March 4, 2020.
Communications
Saket Surya (saket@prsindia.org)
TRAI releases recommendations on reforming the guidelines for transfer/merger of telecom licences
The Telecom Regulatory Authority of India (TRAI) released recommendations on reforming the guidelines for transfer/merger of telecom licenses. [45] The recommendations are aimed towards the modification in the Guidelines for Mergers and Acquisitions, 2014 issued by the Department of Telecommunications (DoT). [46] In September 2019, a consultation paper was released in this regard. [47]
DoT can place certain conditions on merger and transfer under the above guidelines.47 In the past, the Telecom Disputes Settlement and Appellate Tribunal has granted stay on some of these conditions.47 This has caused delays in mergers and transfers being finalised. The recommendations seek to simplify and fast-track approvals for the mergers and transfers of the telecom licenses. Some of the key recommendations are as follows:
AGR is the value of the gross revenue of a service provider after subtracting certain charges and taxes from it, such as roaming charges passed on to other service providers and any service taxes and sales taxes included in the gross revenue.
Consultation paper released on Strategy for National Open Digital Ecosystems
The Ministry of Electronics and Information Technology released a consultation whitepaper on “Strategy for National Open Digital Ecosystems (NODE)”. [48] It refers to a national strategy for enabling digital governance. The key components of such an ecosystem are: (i) public digital infrastructure comprising digital platforms from the government such as Aadhaar and GST network, (ii) laws to govern the infrastructure with regard to data privacy, security, and domain-specific policies and standards, and (iii) community leveraging this infrastructure to create value for all.
An example of NODE is the eTransport Mission Mode Project under the Ministry of Road Transport and Highways.48 It comprises of two applications- Vahan and Sarathi which automate the vehicle registration and driver licensing operations respectively. The availability of this digitised data enables this platform to provide services to various entities including citizens, automobile dealers, insurance companies, and police. Further, the platform ensures data integration with other systems such as stolen vehicle data from National Crime Record Bureau and insurance data from Insurance Regulatory and Development Authority. It also provides interoperability with external applications such as payment gateways and DigiLocker.
The paper outlines the following key guiding principles for a NODE: (i) openness and interoperability, (ii) reusability and shareability, (iii) ensuring security and privacy, (iv) defining accountable institutions, and (v) enabling effective grievance redressal. The paper sought comments on the following points, among others:
Comments on the whitepaper are invited till March 31, 2020.
[1] Union Budget 2020-21, https://www.indiabudget.gov.in/.
[2] “Press Note on Second Advance Estimates of National Income 2019-20 and Quarterly Estimates of Gross Domestic Product for the Third Quarter (Q3) Of 2019-20”, Ministry of Statistics and Programme Implementation, February 28, 2020, http://www.mospi.gov.in/sites/default/files/press_release/PRESS_NOTE_SAE_Q3_%202019-20_28022020.pdf.
[3] “Sixth Bi-Monthly Policy Statement 2019-20”, Press Release, Reserve Bank of India, February 6, 2020, https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR18906DB2B4D9A35C4B928BB05884BC6602DD.PDF.
[4] “Quick Estimates of Index of Industrial Production and Use-Based Index for the Month of December, 2019 (Base 2011-12=100)” Press Release, Ministry of Statistics and Programme Implementation, February 12, 2020, http://www.mospi.gov.in/sites/default/files/press_release/iipdec19.pdf.
[5] The Direct Tax Vivad Se Vishwas Bill, 2020, Ministry of Finance, February 5, 2020, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/29_2020_Eng.pdf.
[6] “Finance Commission constitutes Group on Defence and Internal Security”, Press Information Bureau, Finance Commission, February 13, 2020.
[7] “Finance Commission constitutes High Level Expert Group on Agriculture Exports”, Press Information Bureau, Finance Commission, February 17, 2020.
[8] "Deposit Insurance and Credit Guarantee Corporation (DICGC) increases the insurance coverage for depositors in all insured banks to Rs 5 lakh", Press Releases, Reserve Bank of India, February 4, 2020, https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49330.
[9] "A Guide to Deposit Insurance", Frequently Asked Questions, Deposit Insurance and Credit Guarantee Corporation, https://www.dicgc.org.in/FD_A-GuideToDepositInsurance.html#q3.
[10] “Cabinet approves proposal for capital infusion for OICL, NICL and UIICL”, Press Information Bureau, Cabinet, February 12, 2020.
[11] Insurance Regulatory and Development Authority, Department of Financial Services, https://financialservices.gov.in/insurance-divisions/Insurance-Regulatory-&-Development-Authority.
[12] Insurance Regulatory and Development Authority (Assets, Liabilities, and Solvency Margin of Insurers) Regulations, 2000, Notification, July 14, 2000, https://www.irdai.gov.in/ADMINCMS/cms/frmGeneral_Layout.aspx?page=PageNo58&flag=1.
[13] "Draft Framework for authorisation of a pan-India New Umbrella Entity (NUE) for Retail Payment Systems", Press Releases, Reserve Bank of India, February 10, 2020, https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=49373.
[14] ‘External Benchmark Based Lending - Medium Enterprises, Notifications, Reserve Bank of India, February 26, 2020, https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOT167D1928275E5B34287AD44E1D5DFDB6561.PDF.
[15] ‘Report of the Internal Study Group to Review the Working of the Marginal Cost of Funds Based Lending Rate System’, Reserve Bank of India, September 2017, https://rbidocs.rbi.org.in/rdocs//PublicationReport/Pdfs/MCLRCFF20B31A4A24D0487D8659079CF392B.PDF.
[16] External Benchmark Based Lending, Notifications, Reserve Bank of India, September 4, 2019, https://rbidocs.rbi.org.in/rdocs/notification/PDFs/NOTI53B238D8EB8CD847E7AE8031090F4DCE00.PDF.
[17] Frequently asked questions, Micro Small and Medium Enterprises, Reserve Bank of India, https://www.rbi.org.in/commonperson/English/Scripts/FAQs.aspx?Id=966.
[18] The Aircraft (Amendment) Bill, 2020, as introduced in Lok Sabha, February 4, 2020, https://www.prsindia.org/sites/default/files/bill_files/Aircraft%20%28Amendment%29%20Bill%2C%202020.pdf.
[19] Select Committee Report on “The Surrogacy (Regulation) Bill, 2019”, Rajya Sabha, February 5, 2020, https://www.prsindia.org/sites/default/files/bill_files/Select%20Comm%20Report-%20Surrogacy%20Bill.pdf.
[20] ‘Cabinet approves the Assisted Reproductive Technology Regulation Bill 2020; Path breaking measures taken to protect women’s reproductive rights’, Cabinet, Press Information Bureau, February 19, 2020.
[21] Draft Drugs and Magic Remedies (Objectionable Advertisements) (Amendment) Bill, 2020, Ministry of Health and Family Welfare, February 3, 2020, https://mohfw.gov.in/sites/default/files/Draft%20of%20the%20Drugs%20and%20Magic%20Remedies.pdf.
[22] S.O. 648 (E), Gazette of India, Ministry of Health and Family Welfare, February 11, 2020.
[23] G.S.R 102 (E), Gazette of India, Ministry of Health and Family Welfare, February 11, 2020.
[24] Institute of Teaching and Research in Ayurveda Bill, 2020, Ministry of AYUSH, February 10, 2020, https://prsindia.org/sites/default/files/bill_files/Institute%20of%20Teaching%20and%20Research%20in%20Ayurveda%20Bill%2C%202020.pdf.
[25] “Cabinet approves the Indian Institutes of Information Technology Laws (Amendment) Bill, 2020”, Cabinet, Press Information Bureau, February 5, 2020.
[26] Draft Competition (Amendment) Bill, 2020, http://feedapp.mca.gov.in//pdf/Draft-Competition-Amendment-Bill-2020.pdf.
[27] “Notice inviting comments on the Consultation Paper to examine the existing provisions of law and make suitable amendments therein to enhance audit independence and accountability”, Ministry of Corporate Affairs, February 6, 2020, http://www.mca.gov.in/Ministry/pdf/Comments_08022020.pdf.
[28] Report no. 4, Standing Committee on Labour and Employment: ‘Code on Occupational Safety, Health and Working Conditions, 2019’, Lok Sabha, February 11, 2020, https://prsindia.org/sites/default/files/bill_files/SCR-%20Occupational%20Safety%2C%20Health%20and%20Working%20Conditions%20Code%2C%202019.pdf.
[29] Report to study the alarming issue of pornography on social media and its effect on children and society as a whole, Adhoc Committee, Rajya Sabha, February 3, 2020, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ReportFile/71/140/0_2020_2_17.pdf.
[30] “Cabinet approves Constitution of 22nd Law Commission for a period of three years”, Press Information Bureau, Cabinet, February 19, 2020.
[31] “Cabinet approves Revamping of "Pradhan Mantri Fasal Bima Yojana (PMFBY)" and "Restructured Weather Based Crop Insurance Scheme (RWBCIS)" to address the existing challenges in implementation of Crop Insurance Schemes.”, Press Information Bureau, Cabinet, February 19, 2020.
[32] “CCEA approves scheme for "Formation and Promotion of Farmer Producer Organizations (FPOs) " to form and promote 10,000 new FPOs”, Press Information Bureau, Cabinet Committee on Economic Affairs, February 19, 2020.
[33] National Fisheries Policy, 2020, Department of Fisheries, February 6, 2020, http://dof.gov.in/sites/default/filess/06.02.20%20National%20Fisheries%20Policy%202020.pdf.
[34] F. No. j-1101/10/2019-Fy, Department of Fisheries, February 6, 2020, http://dof.gov.in/sites/default/filess/OM%20to%20Deptts%20and%20Ministries%20NPF_0.pdf.
[35] “CCEA approves upward revision of interest subvention from "upto 2%" to "upto 2.5% p.a." under the scheme Dairy processing and Infrastructure Development Fund (DIDF)”, Press Information Bureau, Cabinet Committee on Economic Affairs, February 19, 2020.
[36] Second Advance Estimates of Production of Foodgrains and Commercial Crops for 2019-20, Directorate of Economics and Statistics, Ministry of Agriculture and Farmers’ Welfare, February 18, 2020, https://eands.dacnet.nic.in/Advance_Estimate/2nd_Adv_Estimates2019-20_Eng.pdf.
[37] “Cabinet approves Swachh Bharat Mission (Grameen) Phase-II”, Press Information Bureau, Cabinet, February 19, 2020.
[38] “CCEA approves Creation of National Technical Textiles Mission”, Press Information Bureau, Ministry of Textiles, February 26, 2020, https://pib.gov.in/PressReleseDetail.aspx?PRID=1604416.
[39] “Cabinet approves the Constitution of an empowered Technology Group”, Press Information Bureau, Cabinet, February 19, 2020.
[40] Ministry of Defence vs Babita Puniya & Ors., Civil Appeals Nos 9367-9369 of 2011, https://main.sci.gov.in/supremecourt/2010/20695/20695_2010_8_1501_20635_Judgement_17-Feb-2020.pdf.
[41][41] Ease of Living Index and Municipal Performance Index 2019 Launched”, Press Information Bureau, Ministry of Housing and Urban Affairs, February 7, 2020.
[42] G.S.R. 126(E), Gazette of India, Ministry of Minority Affairs, February 18, 2020.
[43] S.O. 770 (E), Gazette of India, Ministry of Environment, Forests and Climate Change, February 20, 2020, http://moef.gov.in/wp-content/uploads/2020/02/BATTERY-RULE.pdf.
[44] Draft regulation on use of membrane based water purification systems, Ministry of Environment, Forests and Climate Change, February 3, 2020, http://moef.gov.in/wp-content/uploads/2020/02/Draft_Regulation_MWPS_Eng-Hindi.pdf.
[45] Recommendations on Reforming the Guidelines for Transfer/Merger of Telecom Licenses, Telecom Regulatory Authority of India, February 21, 2020, https://main.trai.gov.in/sites/default/files/Recommendation_21022020_0.pdf.
[46] Guidelines for Merger and Acquisitions, 2014, Department of Telecommunications, https://dot.gov.in/sites/default/files/DOC200214_0.pdf.
[47] Consultation Paper on Reforming the Guidelines for Transfer/Merger of Telecom Licenses, Telecom Regulatory Authority of India, September 19, 2019, https://main.trai.gov.in/sites/default/files/CP_19092019_0.pdf.
[48] Strategy for National Open Digital Ecosystems, Ministry of Electronics and Information Technology, https://static.mygov.in/rest/s3fs-public/mygov_158219311451553221.pdf.
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