Highlights of this Issue
Budget Session 2021 of Parliament ends; Parliament passes 11 Bills in the session
11 Bills including the Government of National Capital Territory of Delhi (Amendment) Bill, the National Bank for Financing Infrastructure and Development Bill and the Insurance (Amendment) Bill were passed.
Union Budget and the Finance Bill, 2021 passed by Parliament
The Bill gives effect to key financial proposals including: (i) addition of Agriculture Infrastructure and Development Cess, (ii) reduced time to reopen tax assessments, and (iii) tax on interest from provident funds.
Second Supplementary Demands for Grants 2020-21 passed by Parliament
The supplementary demands propose an increase of Rs 4,12,653 crore in expenditure over the 2020-21 budget. Five ministries account for 99% of the proposed increase. Increase seen in expenditure on food and fertiliser subsidy.
People above the age of 45 years eligible for COVID-19 vaccination in Phase Two
In the first phase, people above the age of 60 years and people older than 45 years with specified co-morbidities were eligible. All persons older than 45 years will be eligible for vaccination from April 1, 2021.
Guidelines for effective control management of COVID-19 issued
Under the guidelines: (i) the proportion of RTPCR tests among total tests will be increased, (ii) capacity building for health workers and infection prevention practices will be established, and (iii) pace of vaccination will be increased.
Current account deficit at 0.2% of GDP during the third quarter of 2020-21
Current account balance in the third quarter of 2020-21 recorded a deficit of USD 1.7 billion (0.2% of GDP). In comparison, a deficit of USD 2.6 billion (0.4% of GDP) was recorded during the third quarter of 2019-20.
Supreme Court orders waiver of compound interest during moratorium
The government issued guidelines to compensate borrowers for payment on compound interest in October, 2020. The Supreme Court observed that relief should not be restricted borrowers satisfying specified conditions.
Report on the Assisted Reproductive Technology (Regulation) Bill, 2020 submitted
The Committee suggested that role of ART banks should be clearly defined. The personal data collected during ART services should be converted to a form in which the person to whom the data belongs cannot be identified.
Standing Committees submit reports on various schemes and issues
Standing Committees submitted reports on matters including: (i) strengthening of public distribution system, (ii) targets for renewable energy, (iii) sustainable development goals, and (iv) modernisation of railway stations.
Vehicle Scrapping Policy released
Features include: (i) criteria for scrapping includes emission and safety tests, (ii) commercial vehicles and government vehicles to be deregistered after 15 years, (iii) private vehicles to be deregistered after 20 years.
National Biotechnology Development Strategy 2021-25 released
The strategy is aimed at increasing the size of the biotechnology industry in India from USD 63 billion in 2019 to USD 150 billion by 2025. It seeks to ensure import substitution for key products and equipment in the sector.
Comments invited on Draft Plastic Waste Management (Amendment) Rules, 2021
The Draft Rules seek to ban certain plastic items (such as ice-cream sticks and plastic cutleries). The minimum thickness of plastic carry bags will be increased from 50 microns to 120 microns.
Parliament
Shruti Gupta (shruti@prsindia.org)
Budget Session 2021 concludes
The budget session of Parliament was held from January 29, 2021 to March 25, 2021.[1] The session was divided into two parts with a recess from February 14 to March 7, 2021. The session was scheduled to conclude on April 8, 2021, but was curtailed by eight days and was adjourned sine die on March 25, 2021.[2] In this session, the Union Budget, the Finance Bill, 2021 and second Supplementary Demand for Grants were passed. The 2021-22 budget proposes total expenditure of Rs 34,83,236 crore in 2021-22.[3] The second supplementary Demand for Grants propose an increase of Rs 4,12,653 crore in expenditure over the 2020-21 budget estimate.[4]
13 Bills were introduced during the session, of which, three bills had been promulgated as Ordinances earlier. Of the 13 Bills, eight Bills were passed within the session. These include the Government of National Capital Territory of Delhi (Amendment) Bill, 2021, the National Bank for Financing Infrastructure and Development Bill, 2021, and the Insurance (Amendment) Bill, 2021. In total, Parliament passed 11 Bills (excluding the Finance and Appropriation Bills).
The Juvenile Justice (Care and Protection of Children) Amendment Bill, 2021 and the Marine Aids to Navigation Bill, 2021 were passed by Lok Sabha and are pending before Rajya Sabha. The National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019 was passed by Rajya Sabha and is pending in Lok Sabha.
Other Bills that were introduced and are pending include the National Institute of Pharmaceutical Education and Research (Amendment) Bill, 2021 and the Airports Economic Regulatory Authority of India (Amendment) Bill, 2021.
For details of the legislative agenda during the session, see here. For details on the functioning of Parliament during the session, please see here.
Union Budget 2021-22
Suyash Tiwari (suyash@prsindia.org)
Finance Bill, 2021 passed by Parliament
The Finance Bill, 2021 was passed by Parliament to give effect to the government’s financial proposals for the financial year 2021-22.[5] Key features of the Bill include:
In addition, the Finance Bill, 2021 consisted of certain non-tax proposals, such as the following amendments to the LIC Act, 1956 and the Securities Contracts (Regulation) Act, 1956:
Second Supplementary Demands for Grants for 2020-21 passed by Parliament
The second Supplementary Demands for Grants (DFG) for 2020-21 were passed by Parliament.[6] The second Supplementary DFG proposed an incremental cash outgo of Rs 4,12,653 crore, i.e., an increase of Rs 4,12,653 crore in expenditure over the 2020-21 budget. Earlier, in September 2020, the first Supplementary DFG was passed to approve additional cash outgo of Rs 1,66,984 crore.[7] Table 1 shows the Ministries proposed to see the highest cash outgo under the second Supplementary DFG 2020-21. These Ministries account for 99% of the proposed cash outgo.
Table 1: Cash outgo proposed across major Ministries under second Supplementary DFG
|
Ministry |
Cash outgo proposed (Rs crore) |
As a percentage of 2020-21 revised estimate |
|
Total Expenditure |
4,12,653 |
12% |
|
of which: |
|
|
|
Consumer Affairs, Food and Public Distribution |
3,08,296 |
68% |
|
Chemicals and Fertilisers |
65,552 |
48% |
|
Defence |
20,626 |
4% |
|
Road Transport and Highways |
10,000 |
10% |
|
Rural Development |
3,458 |
2% |
Sources: Second Supplementary Demands for Grants 2020-21, Ministry of Finance; Union Budget Documents; PRS.
The expenditure items proposed to be financed through the incremental cash outgo include:
COVID-19
As of March 31, 2021, there were 1,20,39,644 confirmed cases of COVID-19 in India.[11] Of these, 1,14,34,301 had been cured/discharged and 1,62,468 persons had died.11 As of March 31, 2021, 6,30,54,353 individuals have been vaccinated.11 For details on the number of daily cases in the country and across states, see here.
With the spread of COVID-19, the central government has announced several policy decisions to contain the spread, and financial measures to support citizens and businesses who would get affected. For details on the major notifications released by centre and the states, please see here.
Guidelines for effective control and national directives for management of COVID-19 issued
Shruti Gupta (shruti@prsindia.org)
The Ministry of Home Affairs issued the revised guidelines to manage the COVID-19 pandemic, which will come into effect from April 1, 2021.[12],[13] The Ministry had last issued guidelines to contain the spread of COVID-19 in January, 2021.[14] The guidelines provided for: (i) opening up of economic activities in a phased manner through Standard Operating Procedures, (ii) imposition of lockdowns only in containment zones, and (iii) directives to manage Covid-19 in workplaces and public spaces.
The revised guidelines are focused on enforcing the ‘test-track-treat’ protocol, ensuring adequate precautions, and supporting the ongoing vaccination drive.12 Its key features include:
COVID-19 vaccination for people above the age of 45 years from April 2021
Prachi Kaur (prachi@prsindia.org)
The countrywide COVID-19 vaccination drive was rolled out on January 16, 2021.[15] In the first phase, vaccines were administered to healthcare and frontline workers (including police, civil defence, paramilitary personnel, and municipal government workers).
On March 1, 2021, COVID-19 vaccination commenced for all people over the age of 60 years and for people older than 45 years with specified co-morbid conditions.15 Notified co-morbidities include: (i) heart failure with hospital admission in the past one year, (ii) disabilities due to acid attacks with involvement of respiratory system, persons with high support needs, or intellectual disabilities, and (iii) lymphoma or leukaemia, among others.[16]
From March 24, 2021, online registration for COVID-19 vaccine was started for persons above the age of 45 years.[17] They will be eligible to get vaccinated from April 1, 2021.17
As of March 31, 2021, 6.3 crore people have been vaccinated.11
Standing Committee submitted report on impact of COVID-19 on PSUs
Prachi Kaur (prachi@prsindia.org)
In March 2021, the Standing Committee on Industry (Chair: Dr. K. Keshava Rao) submitted its report on the subject ‘Impact of COVID-19 on Public Sector Undertakings (PSUs) and the initiatives taken by the PSUs under Atmanirbhar Bharat Abhiyaan’. Key observations and recommendations include:
For a PRS Summary of the Report, see here.
Macroeconomic Development
Saket Surya (saket@prsindia.org)
Current account deficit at 0.2% of GDP during the third quarter of 2020-21
India’s current account balance in the third quarter (October-December) of 2020-21 recorded a deficit of USD 1.7 billion (0.2% of GDP).[18],[19] In the third quarter of 2019-20, a deficit of USD 2.6 billion (0.4% of GDP) was recorded. In comparison, a surplus of USD 15.1 billion (2.4% of GDP) was recorded in the second quarter of 2020-21.
The decrease in current account balance from the second quarter of 2020-21 to the third quarter of 2020-21 was primarily due to a rise in the merchandise trade deficit (excess of imports over exports) from USD 14.8 billion in the second quarter to USD 34.5 billion in the third quarter of 2020-21. The merchandise trade deficit in the third quarter of 2020-21 was lower than the merchandise trade deficit in the third quarter of 2019-20 (USD 36 billion).
Foreign exchange reserves increased by USD 32.5 billion in the third quarter of 2020-21. This is higher than the increase in foreign exchange reserves recorded in the third quarter of 2019-20 (USD 21.6 billion). This is also higher than the increase in reserves by USD 31.6 billion recorded in the second quarter of 2020-21.
Table 2: Balance of Payments, Q3 2020-21 (USD billion)
|
|
Q3 |
Q2 |
Q3 |
|
2019-20 |
2020-21 |
2020-21 |
|
|
Current Account |
-2.6 |
15.1 |
-1.7 |
|
Capital Account |
23.6 |
16.1 |
33.5 |
|
Errors and Omissions |
0.6 |
0.4 |
0.7 |
|
Change in reserves |
21.6 |
31.6 |
32.5 |
Sources: Reserve Bank of India; PRS.
Home Affairs
Shruti Gupta (shruti@prsindia.org)
The Government of National Capital Territory of Delhi (Amendment) Bill, 2021 passed by Parliament
The Government of National Capital Territory (NCT) of Delhi (Amendment) Bill, 2021 was passed by Parliament. The Bill amends the Government of National Capital Territory of Delhi Act, 1991. The Act provides a framework for the functioning of the Legislative Assembly and the government of the NCT of Delhi. The Bill amends certain powers and responsibilities of the Legislative Assembly and the Lieutenant Governor. Its key features include:
For a PRS Summary of the Bill, see here.
Rights of Overseas Citizen of India cardholders revised
The Ministry of Home Affairs revised the rights granted to Overseas Citizens of India (OCI) cardholders under the Citizenship Act, 1955.[20] The Citizenship Act, 1955 regulates acquisition and determination of citizenship and also contains provisions regarding registration of OCIs and their rights.[21] Key features of the revised rights include:
Standing Committee report on crimes against women and children submitted
The Standing Committee on Home Affairs (Chair: Mr. Anand Sharma) submitted its report on the subject ‘Atrocities and Crimes against Women and Children’ on March 15, 2021.[25] Key observations and recommendations of the Committee include:
For a PRS Summary of the Report, see here.
Finance
Insurance (Amendment) Bill, 2021 passed by Parliament to raise FDI limit to 74%
Suyash Tiwari (suyash@prsindia.org)
The Insurance (Amendment) Bill, 2021 was passed by Parliament.[26] The Bill amends the Insurance Act, 1938. The Act provides the framework for the functioning of insurance businesses and regulates the relationship between an insurer, its policyholders, its shareholders, and the regulator (the Insurance Regulatory and Development Authority of India).
The Act allowed foreign investors to hold up to 49% of capital in an Indian insurance company, which must be owned and controlled by an Indian entity. The Bill increases the limit on foreign investment in an Indian insurance company from 49% to 74%. It also removes restrictions on ownership and control. However, such foreign investment may be subject to further additional conditions as prescribed by the central government.
For PRS summary of the Bill, see here.
National Bank for Financing Infrastructure and Development Bill, 2021 passed by Parliament
Saket Surya (saket@prsindia.org)
The National Bank for Financing Infrastructure and Development Bill, 2021 was passed by Parliament.[27] The Bill establishes the National Bank for Financing Infrastructure and Development (NaBFID) as the principal development financial institution (DFIs) for infrastructure financing. DFIs are set up for providing long-term finance for such segments of the economy where the risks involved are beyond the acceptable limits of commercial banks and other ordinary financial institutions. Unlike banks, DFIs do not accept deposits from the public. They source funds from the market, government, as well as multi-lateral institutions, and are often supported through government guarantees. Key features of the Bill include:
For a PRS Summary of the Bill, see here.
Supreme Court orders waiver of compound interest during moratorium
Suyash Tiwari (suyash@prsindia.org)
The Supreme Court ordered for the waiver of the compounding of interest on loans during the moratorium period.[28] In March 2020, in view of the COVID-19 pandemic, RBI had allowed lending institutions to grant a six-month moratorium (during March-August 2020) to borrowers on all payments due against their term loans, including interest payment.[29],[30] Borrowers who opted for the moratorium and deferred payment of interest were required to pay interest on the deferred interest payment. To provide relief to borrowers from payment of ‘interest on interest’, the government issued guidelines in October 2020 to compensate them, following the Supreme Court’s directions in this regard.[31],[32] As per the guidelines, the relief was provided to borrowers, irrespective of whether they opted for the moratorium or not, provided they satisfied the following conditions:
In its judgement, the Supreme Court observed that there is no rationale in restricting the relief from the compounding of interest to only those borrowers who satisfy these conditions. It noted that compound interest or ‘interest on interest’ shall be chargeable on deliberate or wilful default by borrowers and is a kind of penal interest. It further noted that since non-payment of instalments during the moratorium period cannot be called wilful, there is no justification to charge interest on interest or compound interest or penal interest during this period. It ordered that no borrower must be charged with such penal interest or compound interest, and if charged already, the amount must be refunded.
The Supreme Court dismissed the other petitions relating to: (i) complete waiver of interest during the moratorium period, (ii) extension of the loan moratorium period, (iii) stay on classification as non-performing assets, and (iv) demands for additional relief or sector-specific packages.
Insurance Ombudsman (Amendment) Rules, 2021 notified
Saket Surya (saket@prsindia.org)
The Ministry of Finance notified the Insurance Ombudsman (Amendment) Rules, 2021 to amend the Insurance Ombudsman Rules, 2017.[33] The 2017 Rules provide for the appointment of insurance ombudsmen for hearing disputes relating to personal insurance, group insurance, and policies issued to sole proprietorship and micro enterprises.[34] Key amendments are:
Table 3: Composition of Selection Committee for Insurance Ombudsmen
|
2017 Rules |
2021 Amendment Rules |
|
Chair |
|
|
Chairperson of IRDAI |
Chairperson of IRDAI or any other full-time member of IRDAI authorised by the Chairperson |
|
Members |
|
|
(i) One representative from Life Insurance Council (ii) One representative from General Insurance Council (iii) One representative of the central government |
(i) Two representatives from Banks Board Bureau: one with expertise in life insurance and one with expertise in general insurance (ii) One individual with a track record of advancing the cause of consumer protection in the insurance sector or promotion of consumer rights (iii) One representative of the central government |
Note: IRDAI: Insurance Regulatory Development Authority of India, Banks Board Bureau is the autonomous body set up by the central government for the selection of whole-time directors of public sector insurance companies.
Sources: Insurance Ombudsman Rules, 2017; Insurance Ombudsman (Amendment) Rules, 2021; PRS.
Ministry of Finance releases draft NDB and AIIB Bills for public consultation
Suyash Tiwari (suyash@prsindia.org)
The Ministry of Finance released two draft Bills related to the New Development Bank (NDB) and the Asian Infrastructure Investment Bank (AIIB) for public consultation.[35] NDB and AIIB are banks set up under inter-governmental agreements to mobilise resources for sustainable economic development and infrastructure. NDB was set up under an agreement signed by BRICS countries (Brazil, Russia, India, China, and South Africa) in 2014 for development in BRICS and other emerging market economies. AIIB was set up under an agreement signed by 57 founding countries, including India, in 2014 for infrastructure development in Asia. The draft Bills seek to extend certain privileges and immunities to NDB, AIIB, and their staff and operations, as per the commitments made by India under the NDB and AIIB agreements. These privileges and immunities include:
The Ministry has invited public comments on the draft Bills until April 4, 2021.
Estimates Committee submits report on recent reforms in the union budget
Suyash Tiwari (suyash@prsindia.org)
The Estimates Committee (Chair: Mr. Girish Bhalchandra Bapat) submitted its report on the subject ‘Recent Budgetary Reforms for Better Management of Government Expenditure’.[36] The Committee discussed certain budgetary reforms undertaken by the central government and their impact on the finances of the central and state governments. These reforms include: (i) advancement of the budget cycle with the union budget presentation on February 1, 2021, (ii) merger of plan and non-plan expenditure in the budget, and (iii) merger of the rail budget with the general budget. Key observations and recommendations of the Committee include:
For PRS summary of the report, please see here.
Mining
Saket Surya (saket@prsindia.org)
The Mines and Minerals (Development and Regulation) Amendment Bill, 2021 passed by Parliament
The Mines and Minerals (Development and Regulation) Amendment Bill, 2021 was passed by Parliament. The Bill amends the Mines and Minerals (Development and Regulation) Act, 1957.[37] The Act regulates the mining sector in India. Key features of the Bill include:
For a PRS Summary of the Bill, see here.
Standing Committee submitted report on coal conservation and development of infrastructure for transport of coal
The Standing Committee on Coal and Steel (Chair: Mr. Rakesh Singh) submitted its report on the subject ‘Coal Conservation and Development of Infrastructure for Transportation of Coal across the Country’.[38] Key observations and recommendations of the Committee include:
For a PRS summary of the report, see here.
Standing Committee submitted report on development of leased out iron ore mines and optimum capacity utilisation
The Standing Committee on Coal and Steel (Chair: Mr. Rakesh Singh) submitted its report on the subject ‘Development of Leased out Iron Ore Mines and Optimum Capacity Utilisation’.[39] Key observations and recommendations of the Committee include:
For a PRS summary of the report, see here.
Amendments in mineral auction rules to incentivise early commencement of mineral production
The Ministry of Mines notified the Mineral (Auction) Amendment Rules, 2021 to amend the Mineral (Auction) Rules, 2015.[40],[41] The 2015 Rules regulate the auction of mines. The 2021 amendments aim to incentivise early commencement of production from auctioned mines. Under the 2015 Rules, the lessee is required to share a percentage of the value of minerals despatched with the state government. The amendments provide that if the lessee commences dispatch before the scheduled date of commencement of production, he will be required to pay only 50% of the required amount for quantity despatched before the scheduled date. This will apply to production from fully explored mineral blocks.
Amendments in mineral concession rules to enable the transfer of the letter of intent in certain cases
The Ministry of Mines notified the Minerals (Other than Atomic and Hydro-Carbons Energy Minerals) Concession (Amendment) Rules, 2021.[42] The 2021 Rules amend the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016.[43] The amendments provide for transfer of the letter of intent in cases where the ownership of the successful bidder may change as per the insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. A letter of intent is issued to a successful bidder of a mining lease. Insolvency is a situation where individuals or companies are unable to repay their outstanding debt. The 2016 Rules did not provide for the transfer of letter of intent to the new owner of the successful bidder.[44]
The new owner of the successful bidder will apply to the state government for the transfer of the letter of intent. The new owner must meet eligibility criteria for participating in the auction of mines as per the 1957 Act. The state government must decide on the application for transfer within 90 days. It may approve or reject the request after recording reasons in writing.
Health
The Medical Termination of Pregnancy (Amendment) Bill, 2020 passed
Shruti Gupta (shruti@prsindia.org)
The Medical Termination of Pregnancy (Amendment) Bill, 2020 was passed by Parliament.[45] The Bill amends the Medical Termination of Pregnancy Act, 1971 which provides for the termination of certain pregnancies by registered medical practitioners. The Bill adds the definition of termination of pregnancy to mean a procedure undertaken to terminate a pregnancy by using medical or surgical methods.
For a PRS analysis of the Bill, see here.
The National Commission for Allied and Healthcare Professions Bill, 2020 passed by Parliament
Prachi Kaur (prachi@prsindia.org)
The National Commission for Allied and Healthcare Professions Bill, 2020 was passed by Parliament.[46] The Bill seeks to regulate and standardise the education and practice of allied and healthcare professionals. Key features of the Bill include:
For a PRS summary of the Bill, see here.
The National Institute for Pharmaceutical Education and Research (Amendment) Bill, 2021 introduced in Lok Sabha
Aditya Kumar (aditya@prsindia.org)
The National Institute of Pharmaceutical Education and Research (Amendment) Bill, 2021 was introduced in Lok Sabha.[47] It seeks to amend the National Institute of Pharmaceutical Education and Research Act, 1998. The Act established the National Institute of Pharmaceutical Education and Research, Punjab and declared it as an Institution of National Importance. An Institution of National Importance is an autonomous institute established with the power to hold examinations, grant degrees, diplomas, and other academic titles. These institutes of national importance receive funding from the central government. Key amendments in the Bill include:
For a PRS summary of the Bill, see here.
Standing Committee submits report on the Assisted Reproductive Technology (Regulation) Bill, 2020
Aditya Kumar (aditya@prsindia.org)
The Standing Committee on Health and Family Welfare submitted its report on the Assisted Reproduction Technology (Regulation) Bill, 2020.[48] The Bill seeks to regulate assisted reproductive technology (ART) services in India. ART includes all techniques that seek to obtain a pregnancy by handling the sperm or the oocyte (immature egg cell) outside the human body and transferring the gamete into the reproductive system of a woman.
For a PRS summary of the report, see here.
Standing Committee report on the Pradhan Mantri Bharatiya Janaushadhi Pariyojana submitted
Aditya Kumar (aditya@prsindia.org)
The Standing Committee on Chemicals and Fertilizers (Chair: Ms. Kanimozhi Karunanidhi) submitted its report on the implementation of the Pradhan Mantri Bharatiya Janaushadhi Pariyojana (PMBJP).[49] PMBJP aims to provide quality generic medicines to all at affordable prices. Under this scheme, dedicated outlets known as Pradhan Mantri Bhartiya Janaushadhi Kendras are opened all over the country to sell generic medicines to the public. Key observations and recommendations of the Committee include:
For a PRS summary of the report, see here.
Pradhan Mantri Swasthya Suraksha Nidhi constituted
The Ministry of Family and Health Welfare constituted the Pradhan Mantri Swasthya Suraksha Nidhi (PMSSN).[50] This is a single non-lapsable fund in the public account created with funds from the proceeds of the share of health in the Health and Education Cess. A non-lapsable fund is one where unutilised funds for a financial year are transferred to the next year for utilisation.50
PMSSN will be used for various healthcare initiatives including: (i) National Health Mission, (ii) Ayushman Bharat – Health and Wellness Centres, (iii) Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, and (iv) preparedness for healthcare emergencies and response to them.50
Standing Committee submits report on Sustainable Development Goals
Shruti Gupta (shruti@prsindia.org)
The Public Accounts Committee (Chair: Mr. Adhir Ranjan Chowdhury) submitted its report on the subject ‘Preparedness for the Implementation of Sustainable Development Goals (SDGs)’.[51] In 2015, the United Nations adopted 17 SDGs as targets to be achieved by 2030. These include: (i) no poverty, (ii) zero hunger, and (iii) quality education. The Committee report is based on a 2019 audit by the Comptroller and Auditor General of India (CAG) on NITI Aayog, the Ministry of Health and Family Welfare (MoHFW), and the Ministry of Statistics and Programme Implementation (MOSPI). Key observations and recommendations include:
For a PRS Summary of the Report, see here.
Women and Child Development
Prachi Kaur (prachi@prsindia.org)
The Juvenile Justice (Care and Protection) Amendment Bill, 2021 passed by Lok Sabha
The Juvenile Justice (Care and Protection of Children) Amendment Bill, 2021 was passed by Lok Sabha.[52] The Bill amends the Juvenile Justice (Care and Protection of Children) Act, 2015. The Act contains provisions related to children in conflict with law and children in need of care and protection.[53] The Bill seeks to introduce measures for strengthening the child protection setup. Key amendments include:52
For a PRS summary of the Bill, please see here.
Law and Justice
Saket Surya (saket@prsindia.org)
The Arbitration and Conciliation (Amendment) Bill, 2021 passed
The Arbitration and Conciliation (Amendment) Bill, 2021 was passed by Parliament. The Bill amends the Arbitration and Conciliation Act, 1996. The Act contains provisions to deal with domestic and international arbitration and defines the law for conducting conciliation proceedings. The Bill replaces an Ordinance with the same provisions promulgated on November 4, 2020. Key features of the Bill are:
The Bill specifies that a stay on the arbitral award can be provided (even during the pendency of the setting aside of the application) if the court is satisfied that: (i) the relevant arbitration agreement or contract, or (ii) the making of the award, was induced, or effected by fraud or corruption. This change will be effective from October 23, 2015.
For a PRS Summary of the Bill, please see here.
Civil Aviation
Aditya Kumar (aditya@prsindia.org)
The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 introduced in Lok Sabha
The Airports Economic Regulatory Authority of India (Amendment) Bill, 2021 was introduced in Lok Sabha.[54] It amends the Airports Economic Regulatory Authority of India Act, 2008. The 2008 Act established the Airport Economic Regulatory Authority (AERA). AERA regulates tariffs and other charges (such as airport development fees) for aeronautical services rendered at major airports in India.
The 2008 Act designates an airport as a major airport if it has an annual passenger traffic of at least 35 lakh. The central government may also designate any airport as a major airport by a notification. The Bill adds that the central government may group airports and notify the group as a major airport.
For a PRS summary of the Bill, see here.
The Unmanned Aircraft System Rules, 2021 notified
The Ministry of Civil Aviation notified the Unmanned Aircraft System Rules, 2021.[55] The Rules aim to regulate unmanned aircraft systems (UAS) in India. UAS refers to unmanned aircraft and related elements (such as communication systems and ground control stations), which are operated without a pilot. The Rules apply to: (i) all UAS registered in India irrespective of their current location, (ii) a person possessing a UAS or engaged in various aspects of UAS (such as exporting, importing, manufacturing, and operating), and (iii) all UAS in or over India. Key features of the Rules include the following:
No unmanned aircraft must be operated in certain areas. These include: (i) areas within 5 km from the perimeter of international airports at Mumbai, Delhi, Kolkata, Chennai, Bengaluru, and Hyderabad, (ii) areas within 3 km from the perimeter of a civil, private, defence airports, and military facilities, (iii) areas within 25 km from international borders including Line of Control (LoC) and Line of Actual Control (LAC), and (iv) eco-sensitive zones around national parks and wildlife sanctuaries in India.
Shipping
The Marine Aids to Navigation Bill, 2021 passed by Lok Sabha
Prachi Kaur (prachi@prsindia.org)
The Marine Aids to Navigation Bill, 2021 was passed by Lok Sabha.[56] The Bill seeks to provide a framework for the development, maintenance, and management of aids to navigation in India. It repeals the Lighthouse Act, 1927, which provides for the maintenance and control of lighthouses in India.56 Key features of the Bill include:56
For a PRS summary of the Bill, see here.
Food Processing
National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019 passed by Rajya Sabha
Shruti Gupta (shruti@prsindia.org)
The National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019 was passed by Rajya Sabha.[57] The Bill declares certain institutes of food technology, entrepreneurship, and management as institutions of national importance.
These institutes include the National Institute of Food Technology Entrepreneurship and Management Kundli, and the Indian Institute of Food Processing Technology, Thanjavur.
The Bill declares these institutes as National Institutes of Food Technology, Entrepreneurship and Management.
For a PRS summary of the Bill, see here.
Cabinet approves Production Linked Incentive scheme for food processing
Suyash Tiwari (suyash@prsindia.org)
The Union Cabinet approved the Production Linked Incentive (PLI) scheme for the food processing industry.[58] The scheme aims to support food manufacturing entities in expansion of their processing capacity and incentivise emergence of strong Indian brands through international branding. Under the scheme, the government will incentivise manufacturing of plant machinery in four major food product segments: (i) ready to cook/ eat foods, (ii) processed vegetables and fruits, (iii) marine products, and (iv) mozzarella cheese. Manufacturers with minimum specified sales and willing to make a minimum amount of investment during 2020-23, as specified, will be eligible for receiving benefits under the scheme. However, these conditions will not be applicable in case of innovative/ organic products of small and medium enterprises (SMEs), including eggs, egg products, and poultry meat.
Under the scheme, the government will provide the incentive to the chosen beneficiaries on a yearly basis for a period of six years, during 2021-22 to 2026-27. Rs 10,900 crore has been allocated to the scheme for the six-year period.
Rs 9,040 crore has been allocated for providing the incentives to manufacturers under the scheme, out of which Rs 250 crore has been earmarked for innovative/ organic products of SMEs. In addition, Rs 1,500 crore will be provided as grants to support branding and marketing abroad to incentivise emergence of strong Indian brands. These grants will be provided for in-store branding, shelf space renting, and marketing.
Food Distribution
Shruti Gupta (shruti@prsindia.org)
Committee report on strengthening Public Distribution System submitted
The Standing Committee on Food, Consumer Affairs, and Public Distribution (Chair: Mr. Sudip Bandyopadhyay) submitted its report on the subject ‘Strengthening of Public Distribution System- Augmenting Use of Technological Means and Implementation of One Nation, One Ration Card Scheme’ on March 19, 2021.[59] India’s Public Distribution System (PDS) provides subsidised food through a network of Fair Price Shops (FPS) to beneficiaries identified by state governments. The One Nation-One Ration Card (ONORC) scheme was launched in 2019 to enable nation-wide portability and allow beneficiaries across India access to PDS. Key observations and recommendations include:
For a PRS Summary of the Report, see here.
Standing Committee report on price rise of essential commodities submitted
The Standing Committee on Food, Consumer Affairs and Public Distribution (Chair: Mr. Sudip Bandyopadhyay) submitted its report on the subject ‘Price Rise of Essential Commodities- Cause and Effects’ on March 19, 2021. Key observations and recommendations of the Committee include:
For a PRS Summary of the Report, see here.
Social Justice
Shruti Gupta (shruti@prsindia.org)
Constitution (Scheduled Castes) Order (Amendment) Bill passed by Parliament
The Constitution (Scheduled Castes) Order (Amendment) Bill, 2021 was passed by Parliament.[60] The Bill amends the Constitution (Scheduled Castes) Order, 1950.
The Constitution empowers the President to specify the Scheduled Castes (SCs) in various states and union territories. Further, it permits Parliament to modify this list of notified SCs. The Bill gives effect to modifications proposed by the state of Tamil Nadu.
For a PRS summary of the Bill, see here.
Corporate Affairs
Aditya Kumar (aditya@prsindia.org)
Limits on remuneration to managerial persons under the Companies Act revised
The Ministry of Corporate Affairs revised the limits on remuneration to managerial persons under the Companies Act, 2013.[61] The schedules under the Act specify these limits which can be amended by the central government through a notification. Limits on remuneration to other directors (non-managerial) of the company have been added (Table 4). The limits have been increased for managerial persons (Table 5). These limits are based on the effective capital of the company. The effective capital of a company refers to the total money received from shareholders in exchange of the company shares.
Table 4: Limit on the annual remuneration to other directors (non-managerial)
|
Effective capital |
Limit on annual remuneration |
|
Less than Rs 5 crore |
Rs 12 lakh |
|
Rs 5 crore and above but less than Rs 100 crore |
Rs 17 lakh |
|
Rs 100 crore and above but less than Rs 250 crore |
Rs 24 lakh |
|
Rs 250 crore and above |
Rs 24 lakh plus 0.01% of the effective capital exceeding Rs 250 crore |
Sources: The Companies Act, 2013; S.O. 1256 (E),
Ministry of Corporate Affairs, March 18, 2021; PRS.
Table 5: Changes in the limit on the annual remuneration to managerial persons
|
Effective capital |
Earlier limit on annual remuneration |
New limit on annual remuneration |
|
Less than Rs 5 crore |
Rs 30 lakh |
Rs 60 lakh |
|
Rs 5 crore and above but less than Rs 100 crore |
Rs 42 lakh |
Rs 84 lakh |
|
Rs 100 crore and above but less than Rs 250 crore |
Rs 60 lakh |
Rs 1.2 crore |
|
Rs 250 crore and above |
Rs 60 lakh plus 0.01% of the effective capital in excess of Rs 250 crore |
Rs 1.2 crore plus 0.01% of the effective capital in excess of Rs 250 crore |
Sources: The Companies Act, 2013; S.O. 1256 (E),
Ministry of Corporate Affairs, March 18, 2021; PRS.
Labour and Employment
Code on Wages (Central Advisory Board) Rules, 2021 notified
Prachi Kaur (prachi@prsindia.org)
The Ministry of Labour and Employment notified the Code on Wages (Central Advisory Board) Rules, 2021.[62] These Rules will apply to all central sector establishments. Key features of the Rules include:
Standing Committee report on Prime Minister’s Employment Generation Programme submitted
Shruti Gupta (shruti@prsindia.org)
The Public Accounts Committee (Chair: Mr. Adhir Ranjan Chowdhury) submitted its report on the implementation of Prime Minister’s Employment Generation Programme (PMEGP) on March 15, 2021.[63] PMEGP was launched in 2008 with the aim of providing credit-linked subsidy to set up micro enterprises in non-farm sectors by traditional artisans and unemployed youth. The report is based on an audit by the Comptroller and Auditor General of India of the programme for the period 2008 to 2016. Key observations and recommendations include:
For a PRS Summary of the Report, see here.
Road Transport
Shruti Gupta (shruti@prsindia.org)
Vehicle Scrapping Policy released
The Ministry of Road Transport and Highways released the Vehicle Scrapping Policy which aims to create a system to phase out unfit and polluting vehicles.[64] The government estimates this system to create an additional 35,000 job opportunities and attract investments of around Rs 10,000 crore in the country. Key features of the policy include:
Comments invited on the draft Vehicle Scrapping Rules
The Ministry of Road Transport and Highways released the draft Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021 under the Motor Vehicles Act, 1988.[65] The draft Rules seek to lay down the procedure to establish a Registered Vehicle Scrapping Facility (RVSF), which is an establishment authorised to dismantle and scrap vehicles. Key features of the draft Rules include:
Comments are invited on the draft Rules till April 14, 2021.65
Various amendments to the Central Motor Vehicle Rules notified
The Ministry of Road Transport and Highways notified several amendments to the Central Motor Vehicle Rules, 1989.[66],[67],[68],[69] The amendments include the following:
Airbags in front passenger seats
The Central Motor Vehicles (Third Amendment) Rules, 2021 mandate all vehicles to be fitted with airbags for the front passenger seat.68 The amended Rules will be applicable for new models from April 1, 2021, and August 31, 2021 for existing models.
Fuel requirements and vehicle compatibility
The Central Motor Vehicles (Fourth Amendment) Rules, 2021 came into force in March, 2021.67 Key amendments include:
Regulation of certification, testing, and recall of vehicles
The Central Motor Vehicles (Fifth Amendment) Rules, 2021 will be valid from April 1, 2021.66 Key amendments include:
Various draft amendments to the Central Motor Vehicle Rules released
The Ministry of Road Transport and Highways released several draft amendments to the Central Motor Vehicles Rules, 1989.[72],[73],[74],[75],[76] Comments are invited for the proposed amendments in April, 2021. These include the following amendments:
Railways
Saket Surya (saket@prsindia.org)
Standing Committee submits report on passenger amenities
The Standing Committee on Railways (Chair: Mr. Radha Mohan Singh) submitted its report on ‘Passenger Amenities including Modernisation of Railway Stations’.[77] Key observations and recommendations of the Committee include:
For a PRS summary of the report, see here.
New and Renewable Energy
Aditya Kumar (aditya@prsindia.org)
Standing Committee report on action plan for achievement of 175 GW renewable energy target submitted
The Standing Committee on Energy (Chair: Mr. Rajiv Ranjan Singh) submitted its report on the action plan for achieving 175 gigawatts (GW) of renewable energy by 2022.[78] Key observations and recommendations of the Committee include:
For a PRS summary of the report, see here.
Comments invited on the Draft Policy Framework promoting decentralised renewable energy livelihood applications
The Ministry of New and Renewable Energy invited comments on the Draft Policy Framework for developing and promoting decentralised renewable energy (DRE) livelihood applications.[79] DRE livelihood applications refer to the applications of renewable energy for earning livelihoods (such as solar dryer and biomass powered cold storage). Key features of the framework include:
Basic customs duty imposed on solar cells and modules
Basic customs duty will be imposed on imported solar cells and modules at the rate of 25% and 40%, respectively.[80] This is aimed at promoting domestic solar manufacturing industries. Earlier, no duty was imposed on import of these items. The duties will be applicable from April 1, 2022.
Power
Aditya Kumar (aditya@prsindia.org)
Guidelines for continuance or exit of distribution companies from the power purchase agreement issued
The Ministry of Power issued guidelines to enable distribution companies (discoms) to either continue or exit from a power purchase agreement (PPA) with centrally owned power generating stations, after completion of the period of the agreement (25 years or as specified in the agreement).[81] The guidelines do not apply to PPAs with a nuclear power generating station. Key features of the guidelines include:
The discoms willing to exit after expiry of the PPA period must give advance notice of six months to the power generating stations. The discoms which have completed the period of 25 years may exit by giving a notice period of six months.
The exit of the discoms from the agreement must be approved by the concerned state electricity regulatory commission (SERC). SERCs must ensure that the discoms willing to exit the agreement have adequate power required to meet the electricity demand. The discoms are required to clear all the dues before exiting the PPA.
Environment
Aditya Kumar (aditya@prsindia.org)
Environment Impact Assessment Notification, 2006 amended
The Ministry of Environment, Forest and Climate Change amended the Environment Impact Assessment Notification, 2006.[82],[83],[84] The Notification regulates the social and environment impact of various projects such as dam, mines, airports, and highways. Key amendments include:
The amendments exempt certain existing manufacturing units who are increasing their production capacity from obtaining the prior environmental clearance. The exemption may be given if: (i) the increase in production capacity does not lead to increase in pollution load, and (ii) the concerned manufacturing unit implements online continuous monitoring system with at least 95% up time for reporting emission quality to the Central Pollution Control Board.82 A certificate specifying no increase in the pollution load will be required by the project proponent to obtain the exemption.
The amendments exempt the under-construction projects with an expired environmental clearance from conducting the public hearing, if: (i) application for renewal of the clearance has been made, and (ii) at least 50% construction of the project has been completed.83
Comments invited on Draft Plastic Waste Management (Amendment) Rules, 2021
The Ministry of Environment, Forest and Climate Change invited comments on the Draft Plastic Waste Management (Amendment) Rules, 2021.[85] These Rules amend the Plastic Waste Management Rules, 2016.[86] The 2016 Rules emphasised on the reduction of plastic waste. Key amendments include:85
Further, the draft Rules seek to ban manufacture, sale, and use of single use plastic items from July 1, 2022. Single use plastic items refer to plastics which are used only once before being recycled or disposed. These items include: (i) plates, (ii) cups, (iii) cutleries (such as spoons), (iv) wrapping and packaging films, and (v) plastic banners less than 100 microns of thickness. The ban will not be applicable to items made of compostable plastics.
The amendments add that the thickness of sheets of non-woven plastic carry bag must be at least 60 grams per square meter (GSM) or 240 microns.
Communications
Saket Surya (saket@prsindia.org)
Restrictions placed on procurement of telecom equipment
The Department of Telecommunications added certain conditions on procurement of telecom equipment in various telecom licenses including unified license, unified license-virtual network operator license, and national long distance license.[87] Under these telecom licenses, the central government is empowered to modify terms and conditions of the license.[88],[89] These modifications may be made on the grounds of public interest, security of the state, or proper conduct of telecommunication.88,89
As per these conditions, the National Cyber Security Coordinator (NCSC) will have the right to impose conditions for the procurement of telecom equipment on grounds of defence of India and national security. NCSC under the National Security Council Secretariat coordinates with different agencies at the national level for cybersecurity matters.[90] NCSC will: (i) notify trusted sources along with associated telecom equipment (trusted products), (ii) notify categories of equipment for which security requirement related to trusted sources will be applicable, and (iii) notify sources from whom no procurement can be done.
From June 15, 2021, the licensees will be allowed to connect only trusted products in their network.87 Licensees will require permission from NCSC for upgradation of existing network utilising the telecom equipment which has not been designated as trusted products. These conditions will not affect ongoing annual maintenance contracts or updates to already inducted equipment.87
TRAI seeks views on licensing framework for satellite-based connectivity for low bit-rate applications
Telecom Regulatory Authority of India (TRAI) released a consultation paper on licensing framework for satellite-based connectivity for low bit-rate applications.[91] Satellite communication allows connectivity in remote and inaccessible areas where terrestrial connectivity is not reasonably accessible either due to cost or terrain constraints. TRAI noted that new types of applications involving low bit-rate communication (i.e., low data transfer per unit of time) are emerging. Such applications require low cost, low power, and small size terminals and can effectively perform the task of signal transfer with minimum loss.
TRAI observed that satellite communication will be crucial for low-bit rate internet of things (IoT) devices which are on the move and frequently go out of reach of terrestrial networks. IoT refers to a system of internet-connected objects that can communicate over a wireless network without human intervention. It observed that IoT based applications through satellite connectivity provide enterprises with newer opportunities to increase operational efficiency, reduce costs, and simultaneously secure goods, personnel, and assets. Such applications have use cases in sectors including transport, agriculture, and disaster management.
The Department of Telecommunications made a reference to TRAI seeking its recommendations on the licensing framework to enable the provisioning of satellite-based low bit-rate applications. The Department noted that the satellite-based low bit-rate applications do not fit suitably in the current license framework due to various technical reasons.
TRAI has sought views on the following key issues: (i) models of satellite-based connectivity for IoT and low-bit-rate applications, (ii) types of satellites to be considered for such communication, (iii) frequency bands for such communication, (iv) whether a new licensing framework is required or existing licensing framework may be suitably amended, (v) licensing framework for captive usage, (vi) whether licensees should be permitted to obtain bandwidth from foreign satellites, and (vii) measures for improving the affordability of satellite-based services in India.
Comments are invited until April 9, 2021.
Science and Technology
Saket Surya (saket@prsindia.org)
The National Biotechnology Development Strategy 2021-25 released
The Department of Biotechnology released the National Biotechnology Development Strategy 2021-25.[92] The strategy is aimed at making India globally competitive in biotechnology research, innovation, and industry. The strategy document noted that the growth of the biotechnology industry in India is primarily driven by vaccines, and drugs produced by using genetic engineering (altering the genetic makeup of an organism). The size of the biotechnology industry of India is estimated to be USD 63 billion in 2019. The strategy is aimed at increasing it to USD 150 billion by 2025.
The strategy identifies the following as key focus areas: (i) research academic partnership, (ii) venture capital for high-risk science, (iii) expenditure on research and development by industry, (iv) link between research and commercialisation, and (v) quality assurance as per international standards. It proposes the following key initiatives:
Chemicals and Fertilisers
Suyash Tiwari (suyash@prsindia.org)
Standing Committee submits report on demand and supply of petrochemicals
The Standing Committee on Chemicals and Fertilizers (Chair: Ms. Kanimozhi Karunanidhi) submitted its report on ‘Demand and Availability of Petrochemicals’.[93] Petrochemicals are chemical products derived from hydrocarbons that, in-turn, are derived from crude oil and natural gas. The petrochemical industry mainly comprises of synthetic fibre/ yarn, polymers, synthetic rubber, synthetic detergent intermediates, performance plastics, and the plastic processing industry. Key observations and recommendations of the Committee include:
For PRS summary of the report, please see here.
Petroleum and Natural Gas
Suyash Tiwari (suyash@prsindia.org)
Standing Committee submits report related to production of bio-fuels
The Standing Committee on Petroleum and Natural Gas (Chair: Mr. Ramesh Bidhuri) submitted its report related to the subject production of bio-fuels.[94] Bio-fuels are being developed as economic alternatives to fossil fuels and are environment-friendly in nature. Examples include bio-ethanol, bio-diesel, compressed bio gas, bio-jet fuel, and other advanced bio-fuels. Key observations and recommendations of the Committee include:
For PRS summary of the report, please see here.
Rural Development
Prachi Kaur (prachi@prsindia.org)
State-wise wage rates under MNREGA for unskilled workers amended
The Ministry of Rural Development amended the state-wise wage rate for unskilled manual workers under the Mahatma Gandhi National Rural Employment Guarantee Act, 2005.[95] The notification will come into force from April 1, 2021. These wages were last amended in March 2020.[96] The highest increase in wage rate was witnessed in Meghalaya. The wage rate was increased by Rs 23, from Rs 203/day in 2020 to Rs 226/day in 2021. The wage rate was not increased for Kerala and remained at Rs 291/day from 2020 to 2021.95
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[57] The National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019, Ministry of Food Processing, http://164.100.47.4/billstexts/rsbilltexts/AsIntroduced/Food%20tech-RS%20int-E-13%202%2019.pdf.
[58] “Cabinet approves Production Linked Incentive Scheme for Food Processing Industry”, Press Information Bureau, Cabinet, March 31, 2021.
[59] Strengthening of Public Distribution System- Augmenting use of technological Means and Implementation of One Nation One Ration Card Scheme, Standing Committee on Food, Consumer Affairs and Public Distribution, March 19, 2021, http://164.100.47.193/lsscommittee/Food,%20Consumer%20Affairs%20&%20Public%20Distribution/17_Food_Consumer_Affairs_And_Public_Distribution_12.pdf.
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[63] Implementation of Prime Minister’s Employment Generation Programme, Public Accounts Committee, March 15, 2021, http://164.100.47.193/lsscommittee/Public%20Accounts/17_Public_Accounts_31.pdf.
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