Highlights of this Issue
Parliamentary Standing Committees identify subjects for examination in 2020-21
Some of the subjects for this year include status of COVID-19 vaccine production in India, management of COVID-19 pandemic, various central government schemes, and social security and welfare measures for migrant workers.
Ordinance issued to set up a commission for air quality management in NCR
The Commission will aim at better co-ordination, research, identification, and resolution of problems related to air quality in National Capital Region and adjoining areas in states of Haryana, Punjab, Rajasthan, and Uttar Pradesh.
National lockdown extended till November 30 with additional relaxations
Most rules have been extended. Standard operating procedures for cinema halls and business exhibitions include staggered timings and distancing norms. Requirements for international travel for OCIs/ PIOs have been relaxed.
Measures to increase consumer spending and capital expenditure were announced
Government employees will be given cash vouchers in lieu of their leave travel benefits. To increase capital expenditure, the government will spend Rs 25,000 crore and lend Rs 12,000 crore to states as interest-free loan.
RBI announces additional measures to increase liquidity and credit flow
RBI will conduct open market operations in state government bonds to improve liquidity for these bonds. RBI revised norms to reduce the cost of credit for banks for exposures to individuals and small businesses.
Consumer Price Index inflation was 6.9% in the second quarter of 2020-21
CPI inflation increased from 6.7% in July to 7.3% in September 2020. Food inflation increased from 9.3% to 10.7% between July and September. WPI inflation increased from -0.2% to 1.3% in this period.
Central government revises its borrowing plan to meet GST compensation shortfall
The central government will borrow Rs 1.1 lakh crore in 2020-21 to meet the shortfall in GST compensation cess collections. This amount will be passed on to states as back-to-back loans in lieu of their GST compensation grants.
Notifications issued to apply certain central and state laws to Jammu and Kashmir
The central laws include application of various labour laws (such as the Factories Act, 1948 and Industrial Disputes Act, 1947). The state laws include amendments which allow non-residents to purchase land in Jammu and Kashmir.
Draft Model Tenancy Act, 2020 released for public comments
The draft states that a written tenancy agreement must be delivered to the Rent Authority. It caps security deposit for non-commercial use at two months’ rent and places restrictions on sub-letting.
Draft Rules under Industrial Relations Code, 2020 released for public comments
The draft Rules will apply to all central sphere establishments. It sets out the notice period for applying to the government for permission to lay off or retrench workers. It also sets up a re-skilling fund for retrenched workers.
Amendments to Central Motor Vehicle Rules, 1989 released
The rules detail protection for a good samaritan, i.e., a person who helps an accident victim. They also require incorporation of ownership category in vehicle registration documents.
Strengthening Teaching-Learning and Results for States project approved
The Union Cabinet approved the STARS project which aims to improve the quality of education in the country. It will focus on six states, namely Himachal Pradesh, Kerala, Odisha, Madhya Pradesh, Maharashtra, and Rajasthan.
Parliament
Suyash Tiwari (suyash@prsindia.org)
Standing Committees identify subjects for examination during 2020-21
Fourteen of the 24 Departmentally Related Standing Committees of Parliament have identified subjects for detailed examination during the year 2020-21. The subjects chosen by these Committees are listed in the Annexure.
COVID-19
As of November 1, 2020, there were 81,84,082 confirmed cases of COVID-19 in India.[1] Of these, 74,91,513 had been cured/ discharged and 1,22,111 persons had died.1 For details on the number of daily cases in the country and across states, please see here.
The central government has announced several policy decisions to contain the spread of the disease, and financial measures to support citizens and businesses who would get affected. For details on the major notifications released by the centre and the states, please see here. Key announcements made in this regard in October 2020 are as follows.
Lockdown extended till November 30 with additional relaxations
Anya Bharat Ram (anya@prsindia.org)
To contain the spread of COVID-19, the National Disaster Management Authority had imposed a national lockdown in March. Since then, the lockdown has been extended nine times, with the latest extension till November 30, 2020. Key aspects of the extension include:[2]
Measures to increase consumer spending and capital expenditure were announced
Madhunika Iyer (madhunika@prsindia.org)
The Finance Minister, Ms. Nirmala Sitharaman, announced certain stimulus measures to increase consumer spending and capital expenditure in the year 2020-21.[4] These measures are:
Consumer spending
Under this scheme, employees will be given cash voucher against one LTC (out of the two available for 2018-21) even when they are not travelling, provided they fulfil certain conditions. These include: (i) voucher is used to buy goods or services worth the amount of the 10-day leave encashment plus three times the fare allowed to the employee, (ii) such spending is done before March 31, 2021, and (iii) the money is used to buy goods or services attracting a GST rate of 12% or more, using digital payment.
Capital expenditure
RBI announces additional measures to increase liquidity and credit flow
Madhunika Iyer (madhunika@prsindia.org)
The Reserve Bank of India (RBI) announced measures to enhance liquidity support for financial markets and increase credit flow to ease stress caused by COVID-19.[6] The measures announced by RBI include:
Guidelines issued to provide relief to borrowers from compounding of interest
Suyash Tiwari (suyash@prsindia.org)
The Ministry of Finance issued guidelines to provide relief to borrowers from compounding of interest on their loans during the moratorium period, following the directions of the Supreme Court in this regard.[12],[13] 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.[14],[15] Borrowers who opted for the moratorium and deferred payment of interest are required to pay an interest on the deferred interest payment. To provide relief to borrowers from payment of ‘interest on interest’, in view of the COVID-19 pandemic, the government will make an ex-gratia payment to loan accounts of eligible borrowers through lending institutions. The amount of payment will be equivalent to the difference between the compound interest and simple interest payable for the period March-August 2020 (interests to be calculated based on the loan amount outstanding as on February 29, 2020). This payment will also be made to those borrowers who did not opt for the moratorium.
Borrowers having an aggregate outstanding amount of up to Rs 2 crore (across all loans and lending institutions) are eligible for the scheme. The following kinds of loans will be taken into consideration for the scheme: (i) housing loans, (ii) education loans, (iii) consumer durable loans, (iv) automobile loans, (v) consumption loans, (vi) personal loans to professionals, (vii) loans to MSMEs (including cash credit and overdraft facilities), and (viii) credit card dues. Loans that were Non-Performing Assets, as on February 29, 2020, will not be considered under the scheme.
Guidelines released for reopening of schools and coaching institutes
Anya Bharat Ram (anya@prsindia.org)
The Ministry of Education issued guidelines for reopening of schools and coaching institutes.[16] As per the guidelines, states and union territories (UTs) may decide on the reopening of schools and coaching institutes after October 15, 2020 in a graded manner. States and UTs should consult the respective school or institution management and decide based on the local situation. Key aspects of the guidelines include:
SOPs issued for exhibition of films
Prachi Kaur (prachi@prsindia.org)
The Ministry of Information and Broadcasting issued Standard Operating Procedures (SOPs) for exhibition of films to prevent the spread of COVID-19.[17] The SOPs include physical distancing and mandatory wearing of masks, thermal screening of staff and visitors on entry, staggered row exit, maximum occupancy of 50%, and staggering the show timings of different screens in multiplexes. States may specify additional measures as per their field assessment. Exhibition of films is not allowed in containment zones.
SOP issued for holding B2B trade exhibitions during COVID-19
Madhunika Iyer (madhunika@prsindia.org)
The Ministry of Commerce and Industry issued the SOP for holding business to business (B2B) trade exhibitions during COVID-19.[18] Trade exhibitions are allowed to be held outside containment zones. The SOP requires physical distancing, wearing masks, and mandatory use of Aarogya Setu app for attendees with smartphones. The venue provider must ensure thermal screening and create an isolation centre. The exhibition organizer must stagger the hours of exhibition, manage pre-registration, and keep a record of participants, and transfer suspected COVID-19 patients to the isolation centre.
Ministry of Commerce revises export policy for masks, sanitisers, and gloves
Madhunika Iyer (madhunika@prsindia.org)
The Ministry of Commerce and Industry revised the export policy for N95 masks, alcohol-based hand sanitisers, and gloves: [19],[20],[21]
Domestic air travel guidelines updated
Aditya Kumar (aditya@prsindia.org)
The Ministry of Civil Aviation issued updated guidelines for domestic air travel.[27] Domestic civil flight operations were partially resumed with certain limitations in May 2020.[28] Earlier, only those who did not test COVID-19 positive in the three weeks before the date of travel were allowed for domestic air travel. The updated guidelines allow persons to travel as soon as they have recovered or tested COVID-19 negative.
Further, only one-third of the operations are presently permitted and airlines have to adhere to the fare limits prescribed by the Ministry. These limitations were valid till November 24, 2020.[29],[30] They have now been extended by three months till February 24, 2021.[31]
Environment Impact Assessment (EIA) notification 2006 amended
Aditya Kumar (aditya@prsindia.org)
The Ministry of Environment, Forest and Climate Change amended the EIA Notification 2006 to extend the tenure of the State Environment Impact Assessment Authorities (SEIAA) and appraisal committees constituted for giving out prior environmental clearances under the Notification.[32] The Notification is aimed at regulation of social and environment impact of various projects such as dams, mines, airports, and highways. Certain specified categories of projects require prior environmental clearances from SEIAA on the recommendation of the appraisal committee. SEIAA and appraisal committees are constituted by the central government for a fixed term of three years. In May 2020, considering COVID-19 as an exceptional circumstance, the Ministry amended the EIA notification 2006 to allow six months extension in the tenure of the existing SEIAA and appraisal committees. The amendments increase the period of extension in the tenure of SEIAA and appraisal committees from six months to twelve months.
Macroeconomic Development
Madhunika Iyer (madhunika@prsindia.org)
Consumer Price Index inflation was 6.9% in the second quarter of 2020-21
Consumer Price Index (CPI) inflation (base year 2011-12) was 6.9% in second quarter of 2020-21 (July to September 2020) over the corresponding period in 2019.[33] Inflation was 3.4% in the second quarter of 2019-20 (corresponding quarter of the previous year) and 6.6% in the first quarter of 2020-21 (previous quarter).
Food inflation increased from 9.3% in July to 10.7% in September 2020, recording 9.7% for the second quarter of 2020-21. This is higher than the inflation of 3.5% in the second quarter of 2019-20 and the inflation of 9.2% in the first quarter of 2020-21.
Wholesale Price Index (WPI) inflation was 0.4% in the second quarter of 2020-21, lower than the inflation of 0.9% in the second quarter of 2019-20 and higher than the inflation of -2.2% in the first quarter of 2020-21.[34]
Sources: Ministry of Statistics and Programme Implementation; Ministry of Commerce and Industry; PRS.
Repo and reverse repo rates remain unchanged at 4% and 3.35% respectively
The Monetary Policy Committee (MPC) released the bi-monthly Monetary Policy Statement.[35] The policy repo rate (the rate at which RBI lends money to banks) remained unchanged at 4%. Other decisions of the MPC include the following:
Finance
Central government revises its borrowing plan to meet GST compensation shortfall
Suyash Tiwari (suyash@prsindia.org)
The central government revised its borrowing plan for 2020-21 to meet the shortfall arising in GST compensation cess collections during the year.[36] Under the GST (Compensation to States) Act, 2017, the central government is required to pay compensation to states if their GST revenue growth is less than 14% in any year during the period July 2017-June 2022. To generate funds for this purpose, the Act provides for the levy of GST compensation cess on certain luxury and sin goods, such as cigarettes, tobacco products, pan masala, coal, and certain passenger vehicles and beverages. In 2020-21, the cess collection is expected to be lower than the compensation requirement of states for the year, resulting in a shortfall of nearly Rs 2.3 lakh crore.[37] Of the total shortfall, the central government has proposed an additional borrowing of Rs 1.1 lakh crore in 2020-21 to meet the shortfall related to ‘GST implementation’. The remaining shortfall will be paid to states after June 2022 from future cess collections. The repayment of Rs 1.1 lakh crore borrowing and the interest payment on it will also be through future cess collections. To enable this, the GST Council has recommended the central government to extend the levy of the compensation cess beyond June 2022 for such period as may be required to meet the shortfall.[38]
The borrowing of Rs 1.1 lakh crore done by the central government will be passed on to states (which agree to borrow through this mechanism) as back-to-back loans in lieu of their GST compensation grants. The amount borrowed by states will increase their fiscal deficit, but will not be counted within the fiscal deficit limit of 5% of GSDP approved for states for 2020-21.
The borrowing of Rs 1.1 lakh crore increases the central government’s gross market borrowing target for 2020-21 by 9.2% to Rs 13.1 lakh crore. The central government has stated that this additional borrowing will not have any impact on its fiscal deficit or the debt of the general government (i.e. central and state governments).
Report of the Committee on Standalone Microinsurance Company was submitted
Madhunika Iyer (madhunika@prsindia.org)
The Committee on Standalone Microinsurance Company (Chair: Ms. Mirai Chatterjee) submitted its report to the Insurance Regulatory and Development Authority of India (IRDAI).[39] Microinsurance is a mechanism to protect low-income individuals against risks such as death, accident, illness, and natural disasters. Key recommendations include:
Comments on the Report are invited till November 9, 2020.
IRDAI constituted a Working Group to study Cyber Liability Insurance
Madhunika Iyer (madhunika@prsindia.org)
IRDAI constituted a Working Group to study the need for a standard Cyber Liability Insurance product.[40] Cyber liability insurance could provide cover against cyber-attacks and data breaches for individuals and establishments. These may include identity theft, unauthorised transactions, malware intrusions, or cyber extortions. These events are not covered by general liability insurance which covers bodily injury and property damage.
The Working Group will be headed by Mr. P. Umesh and will include eight other members. The Terms of Reference for the Group include: (i) study statutory provisions on information and cyber security, (ii) evaluate critical legal issues in transactions in the cyber space, (iii) examine incidents involving cyber security and possible insurance coverage for those incidents, (iv) examine cyber liability insurance products currently available, and (v) recommend scope of cyber liability insurance.
The Group is required to submit its Report by December 19, 2020.
IFSCA introduces a framework for regulatory sandbox
Madhunika Iyer (madhunika@prsindia.org)
The International Financial Services Centres Authority (IFSCA) released a framework for a regulatory sandbox.[41] A regulatory sandbox provides an environment that allows market participants to test new FinTech solutions (products, services, or business models) with customers in a controlled manner during a limited testing period. Key features of the framework include:
RBI issues directions for interoperability of QR code
Madhunika Iyer (madhunika@prsindia.org)
RBI issued directions for interoperability of the Quick Response (QR) code infrastructure for facilitating digital payments.[42] This measure is among the recommendations from the Committee on the Analysis of QR Code which submitted its report in July 2020.[43] QR code is a two-dimensional bar code that can be read by imaging devices such as smartphones.43 It facilitates digital payments without the need for point of sale terminals. An interoperable QR code enables consumers to make payments using any payment app. Without interoperability, QR codes of particular payment system operators (PSOs) can each be scanned only by an associated payment app.
As per RBI’s notification, two interoperable QR codes that are currently in existence, UPI QR and Bharat QR, will continue to operate.42 PSOs, such as certain mobile wallet providers, that use proprietary (non-interoperable) QR codes must shift to interoperable QR codes by March 31, 2022. PSOs are not allowed to launch new proprietary (non-interoperable) QR codes.
Environment
Aditya Kumar (aditya@prsindia.org)
Ordinance issued to set up a commission for air quality management in NCR
The Commission for Air Quality Management in National Capital Region and Adjoining Areas Ordinance, 2020 was promulgated.[44] The Ordinance establishes a Commission for better co-ordination, research, identification, and resolution of problems related to air quality in the national capital region (NCR) and adjoining areas. Adjoining areas refers to areas in the states of Haryana, Punjab, Rajasthan, and Uttar Pradesh where any source of pollution may cause adverse impact on air quality in the NCR. The key provisions of the Ordinance include:
For a summary of the Ordinance, see here.
Environment (Protection) Amendment Rules, 2020 notified
The Ministry of Environment, Forest and Climate Change notified the Environment (Protection) Amendment Rules, 2020.[45] The Rules amend the Environment (Protection) Rules, 1986, which is aimed at regulating the environmental pollutants and emission standards.[46] The 2020 Amendment Rules increase the particulate matter emission standard threshold of oxides of nitrogen (NOx) for thermal power plants (installed between January 1, 2003 and December 31, 2016) from 300 mg per normal cubic metre to 450 mg per normal cubic metre.
Hazardous and Other Wastes Amendment Rules, 2020 notified
The Ministry of Environment, Forest and Climate Change notified the Hazardous and Other Wastes (Management and Transboundary Movement) Amendment Rules, 2020.[47] It amends the 2016 Rules which provide a framework for hazardous waste management.[48] Hazardous waste refers to any waste which may be dangerous for health or environment. As per the 2016 Rules, workers involved in recycling, pre-processing, and other utilisation activities related to hazardous wastes were entitled to certain benefits including: (i) recognition and registration of workers, (ii) industrial skill development, and (iii) annual health and safety monitoring. The 2020 Amendment Rules extend the scope of these benefits to include workers involved in generation, handling, collection, reception, treatment, transport, storage, reuse, disposal, and recovery of hazardous wastes.
Chemicals listed as hazardous under the Stockholm Convention banned
The Union Cabinet ratified ban of seven persistent organic pollutants (POPs) listed under the Stockholm Convention as chemicals hazardous to health and environment.[49] The Stockholm Convention is a global treaty to protect human health and environment from POPs. The exposure to POPs may: (i) lead to cancer, (ii) damage nervous system, (iii) harm immune system, (iv) cause reproductive disorders, and (v) impact child development.49
Labour and Employment
Roshni Sinha (roshni@prsindia.org)
Draft Rules under Industrial Relations Code, 2020 released for comments
The Ministry of Labour and Employment released the draft central rules under the Industrial Relations Code, 2020.[50],[51] The draft Rules will apply to establishments which are under the control of the central government and will replace the previous central rules on these matters. Key features of the draft Rules include:
Comments on the draft Rules are invited within 30 days of notification (from October 29, 2020).
Supreme Court strikes down exemption notification issued by the government of Gujarat under Factories Act, 1948
The Factories Act, 1948 regulates the safety, health, and welfare of workers in factories with at least 10 or 20 workers (based on use of power). The Act enables the government to exempt any factory or class of factories from its provisions in the case of a ‘public emergency’. ‘Public emergency’ is defined to include a ‘grave emergency’ which threatens the security of the state by way of war, external aggression, or internal disturbance.
In April 2020, the government of Gujarat issued notifications under the Act to exempt factories in the state from several provisions of the Act in view of the COVID-19 pandemic.[52] These included: (i) increase in maximum weekly work hours from 48 hours to 72 hours, (ii) increase in maximum daily work hours from 9 hours to 12 hours, (iii) change in the mandatory rest periods from once every five hours to once every six hours, and (iv) revision in the formula for calculating overtime wages from twice the rate of wages to a rate which is proportionate to existing wages. The notifications were valid from April 20, 2020 to October 19, 2020.
These notifications were challenged before the Supreme Court. The question before the Court was whether the COVID-19 pandemic and the consequent lockdown created a ‘public emergency’ as defined in the Act. The Court noted the state’s argument that the pandemic created an economic slowdown and that the situation was on the “brink of an internal disturbance”. However, the Court concluded that the slowdown did not affect the security of India or any part of its territory in a way that disturbed its peace and integrity. Therefore, the Court struck down the notifications because the economic slowdown created by the pandemic did not qualify as an ‘internal disturbance’ that posed a ‘grave emergency’ and which threatened the security of the state.[53]
The Court also observed that the denial of humane working conditions and payment of overtime wages as provided by law constituted an affront to Articles 21 (right to life) and Article 23 (prohibition against forced labour) of the Constitution of India. The Court further directed that overtime wages be paid to all workers who have been working since the date of the issuance of the notifications, at the original rate of double the ordinary wages.
CAG submitted performance audit report on the National Pension Scheme
The Comptroller and Auditor General (CAG) submitted its performance audit report on the National Pension Scheme (NPS).[54] The NPS is a contributions-based pension scheme mandatory for central government employees and their autonomous bodies (except armed forces). State governments and their autonomous bodies also adopt the NPS architecture on different occasions for their employees. The NPS is regulated by the Pension Fund Regulatory and Development Authority (PFRDA). Key findings and recommendations of CAG include:
Home Affairs
Roshni Sinha (roshni@prsindia.org)
Notifications to apply certain central and state laws in Jammu and Kashmir issued
The central government issued a notification to apply 14 central laws to the Union Territory of Jammu and Kashmir (J&K), with certain amendments.[55],[56] These laws include the Trade Unions Act, 1926, the Factories Act, 1948, and the Industrial Disputes Act, 1947. The amendments include: (i) allowing women to work between 6 AM and 7 PM with their consent under the Factories Act, and (ii) provisions for compounding (settling) of offences under the Industrial Disputes Act.
Additionally, 37 laws (which were applicable in the former state of J&K) have been applied to the union territory, with amendments, or have been repealed in some cases.55,56,[57] The effect of some of these amendments and repealed laws is to remove the provisions which only allowed permanent residents of J&K to purchase property in the territory. Some other amended laws include those which cover the levy of goods and service tax, agrarian reforms, and salaries and allowances of members of the legislature. The government also amended the Jammu and Kashmir Panchayati Raj Act, 1989 to create provisions for setting up elected bodies called District Development Councils in every district in the union territory (except for those territories which are included in a municipality or municipal corporation).
Law and Justice
Anurag Vaishnav (anurag@prsindia.org)
NITI Aayog Expert Committee on online dispute resolution submits its draft report
The NITI Aayog Expert Committee constituted to build a framework for online dispute resolution in India submitted a draft report for discussion.[58] Online Dispute Resolution (ODR) refers to use of information and communication technology for resolution of disputes (for instance, through use of video-conferencing and digital circulation of files for resolution). The Committee noted the need for an implementation framework for ODR by facilitating adoption and amending existing regulations, especially in view of the COVID-19 induced lockdown.
ODR offers several potential benefits, such as: (i) reduction in costs (does not require parties to travel, reduced legal fees), (ii) faster dispute resolution, and (iii) reduction in unconsciousness bias that may arise from physical presence while resolving disputes. However, there are several challenges in the adoption of ODR. These include: (i) lack of digital infrastructure and digital literacy, (ii) lack of awareness and trust in ODR services, (iii) archaic legal processes which require physical presence, and (iv) concerns on privacy. In this regard, the Committee held:
Comments on the draft report are invited till November 11, 2020.
Housing and Urban Affairs
Prachi Kaur (prachi@prsindia.org)
Draft Model Tenancy Act, 2020 released for public comments
The Ministry of Housing and Urban Affairs released the draft Model Tenancy Act, 2020, to be enacted by state and union territory legislatures, for public comments.[59] Key features of the draft Act include:
Comments on the draft Act are invited till November 28, 2020.
Transport
Various amendments to the Central Motor Vehicles Rules, 1989 released
Prachee Mishra (prachee@prsindia.org)
The Ministry of Road Transport and Highways released several amendments to the Central Motor Vehicles Rules, 1989.60,61,62 These include the following:
Protection of good Samaritans
The Motor Vehicles Act, 1988 defines a good Samaritan as a person who renders emergency medical or non-medical assistance to a victim at the scene of an accident. The assistance must have been (i) in good faith, (ii) voluntary, and (iii) without the expectation of any reward. Such a person will not be liable for any civil or criminal action for any injury to or death of an accident victim, caused due to their negligence in providing assistance to the victim. The amended Rules provide for the following:60
Ownership in vehicle registration documents: The Ministry notified amendments to the 1989 Rules incorporating ownership in motor vehicle registration documents.[61] The amended Rules add a new section which provides for ownership type. Categories under this include: (i) autonomous body, (ii) central government, (iii) driving school, (iv) Divyangjan, (v) firm, (vi) individual, (vii) police department, and (viii) multiple owners, among others.
In addition, the Ministry also released draft amendments to the Central Motor Vehicles Rules, 1989 amending the requirements to obtain an international driving permit.[62] The proposed amendments include:
Draft Coastal Shipping Bill, 2020 released for public comments
Shruti Gupta (shruti@prsindia.org)
The Ministry of Shipping released the draft Coastal Shipping Bill, 2020 for public comments.[63] Coastal shipping refers to the transport of goods and passengers by sea. Coastal shipping is currently regulated under the Merchant Shipping Act, 1958. The draft Bill seeks to provide a standalone framework for the sector.[64],[65] Only registered or licenced vehicles may engage in trade, exploration, or research in the coastal waters of India.
The Bill states that a strategic plan to improve and manage existing water networks must be developed within two years. It should include: (i) an assessment of shipping routes, (ii) identification of operational improvements required, (iii) long-term forecasts on water networks, and (iv) best practices to improve overall performance.
Comments are invited on the draft Bill till November 6, 2020.
Draft amendments to Merchant Shipping (Maritime Labour) Rules, 2016 released
Prachee Mishra (prachee@prsindia.org)
The Directorate General of Shipping has invited comments on amendments to the Merchant Shipping (Maritime Labour) Rules, 2016.[66] Key amendments proposed include:
A seafarer’s employment agreement will continue to have effect while the seafarer is held captive on or off the ship due to an act of piracy or armed robbery against the ship. This will be regardless of whether the employment agreement is set to expire or either party has given a notice to terminate it. Piracy includes any acts of violence, detention, or destruction committed for private ends against persons or property on board a ship on the high seas or outside the jurisdiction of a state.[67]
Further, when a seafarer is held captive under an act of piracy or armed robbery, wages and other entitlements including repatriation (under the employment agreement) will continue to be paid to him. The ship-owner must ensure that these are paid throughout the period of captivity and until: (i) the seafarer is released and duly repatriated, or (ii) the date of death, if the seafarer dies in captivity.
Ministry of Shipping amends Right of First Refusal licensing conditions
Prachee Mishra (prachee@prsindia.org)
The Ministry of Shipping has reviewed the Right of First Refusal licensing conditions for chartering of ships through tender process for all types of requirements.[68] As per the amended guidelines, priority in chartering of vessels will be as follows:
All ships registered in India up to the date of issue of new circular by the Director General of Shipping will be deemed to be Indian built and will fall in the first category.
The duration of licence to such chartered ships will be limited to the period of building of the ship, as mentioned in the shipbuilding contract. The revised guidelines seek to give a boost to the domestic shipbuilding and shipping industries.
Directorate General of Shipping notified as National Authority for Ships Recycling
Prachee Mishra (prachee@prsindia.org)
The Directorate General of Shipping has been notified as the National Authority for Recycling of Ships under the Recycling of Ships Act, 2019.[69] The National Authority will administer, supervise, and monitor all activities relating to ship recycling under the Act.
As per the Act, ships should not use prohibited hazardous materials as notified. The National Authority will carry out periodic surveys to verify the prescribed requirements. The owner of every new ship must apply to the National Authority to obtain a certificate on the inventory of hazardous materials. Further, a ship owner must apply to the National Authority for a ready for recycling certificate before recycling his ship. Decisions of the National Authority may be appealed with the central government within 30 days of receiving such decision.
Railways
Saket Surya (saket@prsindia.org)
Policy on development of goods-sheds at small stations through private investment
The Ministry of Railways issued a policy on the development of goods-sheds at small/ road-side stations through private investment.[70] The policy seeks to promote setting up of new goods-shed facilities as well as the development of existing goods-sheds. Key features include:
Power
Aditya Kumar (aditya@prsindia.org)
Draft Electricity (Change in Law, Must-run status, and other Matters) Rules, 2020 released
The Ministry of Power released the draft Electricity (Change in Law, Must-run status, and other Matters) Rules, 2020.[71] The draft Rules, issued under the Electricity Act, 2003, are aimed at facilitating pass through and compensating renewable energy generators for lack of demand from buyers. Pass through refers to the mechanism in which any additional expenditure is accounted in the cost and is charged to the consumer. Key features of the draft Rules are:
Draft Electricity (Late Payment Surcharge) Rules, 2020 released
The Ministry of Power released the draft Electricity (Late Payment Surcharge) Rules, 2020.[72] The Rules, issued under the Electricity Act, 2003, are aimed at regulating the late payment surcharge payable by (i) a distribution licensee to a generating company, or (ii) a transmission system user to a transmission licensee. Late payment surcharge refers to the charge payable for delay beyond the due date in payment of monthly charges of power purchased or to use the transmission system. It will apply to all payments outstanding after the due date.
The rate of the surcharge will be as per the applicable bank rate or the rate provided in the agreement of supply or transmission of power, whichever is lower. The bank rate refers to the State Bank of India’s rate of marginal cost of funds-based lending for one year plus 500 basis points. If the applicable rate is less than the rate provided in the agreement, the rate will increase by 50 basis points per month after one month from the due date. The maximum limit of the late payment surcharge will be at applicable bank rate plus 200 basis points.
All payments by a distribution licensee to a generating company or by a transmission system user to a transmission licensee will be first adjusted towards the late payment surcharge.
New and Renewable Energy
Aditya Kumar (aditya@prsindia.org)
Guidelines released for bidding process for procurement of power from grid-connected wind-solar hybrid projects
The Ministry of New and Renewable Energy released guidelines to provide for a framework based on competitive and transparent tariff-based bidding process for procurement of power from grid-connected wind-solar hybrid projects.[73] This is in accordance with the Wind-Solar Hybrid Policy issued in May 2018.[74] The policy is aimed at providing a framework for the promotion of grid-connected wind-solar hybrid projects for achieving better grid stability. Some of the key features of the guidelines are:
Draft policy framework released for DRE livelihood applications in rural areas
The Ministry of New and Renewable Energy invited comments on the draft policy framework for developing and promoting decentralised renewable energy (DRE) livelihood applications in rural areas.[75] DRE livelihood applications refers to the applications of renewable energy to earn livelihoods (such as solar dryer and solar powered cold storage). Key features include:
Agriculture
Saket Surya (saket@prsindia.org)
Cabinet approves revised mechanism for procurement of ethanol by oil companies
The Union Cabinet approved a revised mechanism for procurement of ethanol by public sector Oil Marketing Companies (OMCs), under the Ethanol Blended Petrol Programme launched in 2013.[76] Under the programme, OMCs procure ethanol from distilleries at administered prices and sell petrol blended with ethanol up to 10%. The programme also seeks to promote ethanol production from sugarcane-based raw materials, with the aim of reducing sugar production in the country. The earlier mechanism required the OMCs to prioritise procurement of ethanol made from sources using higher sugar content (sugarcane juice followed by various kinds of molasses). The approved mechanism seeks to provide a fair opportunity to the localised industry and reduce the haphazard movement of ethanol across states. Under this mechanism, OMCs will decide the criteria for determining the priority of ethanol procurement from various sources. The criteria would account for factors such as transportation cost and availability, and will apply within the state boundaries.
The Cabinet also approved an increase in the prices of ethanol for the supply year 2020-21 (December 2020-November 2021). The increase in price is as follows:
Water Resources
Prachi Kaur (prachi@prsindia.org)
Campaign launched for safe piped water supply in schools and anganwadi centres
The Ministry of Jal Shakti launched a 100 days campaign to ensure safe piped water supply in schools and anganwadi centres across the country.[77] This campaign comes under the Jal Jeevan Mission (JJM) which aims to provide universal coverage of tap water connection to every rural household by 2024. Key features of the campaign include the following:77,[78]
Education
Anya Bharat Ram (anya@prsindia.org)
Strengthening Teaching-Learning and Results for States project approved
The Union Cabinet approved the Strengthening Teaching-Learning and Results for States (STARS) project.[79] The project aims to improve the quality of education in the country.
At the national level, the scheme aims to (i) strengthen data collected on retention, transition, and completion rates of students, (ii) set up a National Assessment Centre to facilitate inter-state communication, and (iii) set up a Contingency Emergency Response Component to facilitate education during natural and man-made disasters, amongst others. At the state-level, the scheme will focus on matters such as (i) strengthening early childhood education and foundational learning, (ii) improving learning assessment systems, and (iii) strengthening vocational education and classroom instruction.
It will focus on the following six states: Himachal Pradesh, Kerala, Odisha, Madhya Pradesh, Maharashtra, and Rajasthan.
The total cost of the project will be Rs 5,718 crore. A financial assistance of Rs 3,700 crore will be provided by the World Bank for the project. It will be implemented as a new scheme sponsored by the central government.
Annexure
The subjects identified by various Parliamentary Standing Committees for examination during the year 2020-21 are given in Table 1.
Table 1: Subjects identified by the Standing Committees for examination during 2020-21
Agriculture |
Department of Agriculture, Co-operation and Farmers’ Welfare
Department of Agricultural Research and Education
Department of Animal Husbandry and Dairying
Department of Fisheries
Ministry of Food Processing Industries
|
Chemicals and Fertilizers |
Department of Fertilizers
Department of Chemicals and Petrochemicals
Department of Pharmaceuticals
|
Coal and Steel |
Ministry of Coal
Ministry of Mines
Ministry of Steel
|
Energy |
Ministry of Power
Ministry of New and Renewable Energy
|
External Affairs |
|
Home Affairs |
|
Information Technology |
Ministry of Information and Broadcasting
Ministry of Electronics and Information Technology
Department of Posts
Department of Telecommunications
|
Labour |
Ministry of Labour and Employment
Ministry of Textiles
Ministry of Skill Development and Entrepreneurship
|
Petroleum and Natural Gas |
|
Railways |
|
Rural Development |
Department of Rural Development
Department of Land Resources
Ministry of Panchayati Raj
|
Social Justice and Empowerment |
Department of Social Justice and Empowerment
Department of Empowerment of Persons with Disabilities
Ministry of Tribal Affairs
Ministry of Minority Affairs
|
Transport, Tourism and Culture |
|
Urban Development |
|
Sources: Various issues of Bulletin-II, Lok Sabha; PRS.
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[60] “Rules published for protection of Good Samaritans”, Press Information Bureau, Ministry of Road Transport and Highways, October 1, 2020.
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[67] United Nations Convention on the Law of the Sea, https://www.un.org/depts/los/convention_agreements/texts/unclos/unclos_e.pdf.
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[70] “Ministry of Railways issues "Policy on Development of Goods-sheds at small/road-side stations through Private Investment”, Press Information Bureau, Ministry of Railways, October 15, 2020.
[71] ‘Draft Electricity (Change in Law, Must-run status, and other Matters) Rules, 2020’, Ministry of Power, October 1, 2020, https://powermin.nic.in/sites/default/files/webform/notices/Draft_Electricity_Change_in_Law_Must_run_status_and_other_Matters_Rules_2020.pdf.
[72] ‘Draft Electricity (Late Payment Surcharge) Rules, 2020, Ministry of Power, October 8, 2020, https://powermin.nic.in/sites/default/files/webform/notices/Draft%20Electricity%20%28Late%20Payment%20Surcharge%29%20Rules%2C%202020.pdf.
[73] ‘Guidelines for tariff based competitive bidding process for procurement of power from grid connected wind-solar hybrid projects’, Ministry of New and Renewable Energy, October 14, 2020, https://mnre.gov.in/img/documents/uploads/file_f-1603290789230.PDF.
[74] National Wind-Solar Hybrid Policy, Ministry of New and Renewable Energy, May 14, 2018, https://mnre.gov.in/img/documents/uploads/2775b59919174bb7aeb00bb1d5cd269c.pdf.
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[76] “Cabinet approves Mechanism for procurement of
ethanol by Public Sector Oil Marketing Companies
under Ethanol Blended Petrol Programme”, Press Information Bureau, Cabinet Committee on Economic Affairs, October 29, 2020.
[77] JJM Document number 8, 100 days campaign to provide Piped Water Supplying Anganwadi Centres, Asharmshalas, and Schools, Ministry of Jal Shakti, October 2, 2020, https://jalshakti-ddws.gov.in/sites/default/files/100_Days_Campaign_10_Oct_2020.pdf.
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[79] Press Information Bureau, “Cabinet approves Rs. 5718 crore World Bank aided project STARS”, Ministry of Education, October 14, 2020.
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