October 2023

Highlights of this Issue

Repo rate remains unchanged at 6.5%

The Monetary Policy Committee of the Reserve Bank of India retained the policy repo rate at 6.5%.  Other policy rates also remain unchanged.

Supreme Court rejects plea for same-sex marriage

The five-judge Bench unanimously agreed that there is no fundamental right to marry and same-sex marriage cannot be read into the Special Marriage Act, 1954.

Renewable energy consumption obligation notified for 2024-2030 period

It will apply to designated consumers specified under the Energy Conservation Act, 2001 which includes electricity distribution licensees (discoms).   It will override renewable purchase obligation for discoms.

R&D roadmap for green hydrogen released

The roadmap makes recommendations to achieve the objectives of National Green Hydrogen Mission.  These include, setting up a dedicated R&D fund and establishing centres of excellence in the area of green hydrogen. 

RBI releases circular to regulate cross-border payment aggregators

The circular requires non-bank payment aggregators to register with the RBI to carry out cross-border payments for import and export of permissible goods and services.

Guidelines for equitable and inclusive education, released

Recommendations include ensuring foundational literacy and numeracy, early identification of disability, creating socially accommodating curriculum and adopting teaching pedagogy that uses signs and tactile teaching aid.

SEBI revises framework for debt issuance by large corporates

The revised framework has increased the threshold for identifying large corporates from entities having outstanding long-term borrowing of Rs 100 crore to Rs 1,000 crore.

RBI releases draft master directions on risk management of outsourced activities

The draft master directions outline which activities can be outsourced by regulated entities.  Entities must take measures to manage risk while outsourcing activities.

Supreme Court permits use of donor gametes for surrogacy

In an order, the Court held that restrictions on surrogacy cannot contradict the right of a woman to avail surrogacy in certain medical conditions.  These include having a missing or an abnormal uterus.  

Report of working groups on Artificial Intelligence released

The report lists out recommendations of seven working groups on subjects including government data management, skill development, infrastructure, and chipsets for AI.

Draft notification of renewable generation obligation released

The draft notification will require coal/lignite based power plants to procure or generate at least 10% of their energy from renewable sources.  By April 1, 2028, all such plants will have to comply with this obligation.

Amendment to determine prices of lithium, rare earth elements, and niobium, notified

The Amendment lays down a standardised approach for determining prices of lithium, rare earth oxide and niobium.
 

Macroeconomic Development

Repo rate kept unchanged at 6.5%

Pratinav Damani (pratinav@prsindia.org)

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) retained the policy repo rate (the rate at which RBI lends money to banks) at 6.5%.[1]  Other decisions of the Committee are as follows:

• The standing deposit facility rate (the rate at which the RBI borrows from banks without giving collateral) has been retained at 6.25%.

• The marginal standing facility rate (the rate at which banks can borrow additional money from RBI), and the bank rate (rate at which RBI buys bills of exchange) have been retained at 6.75%.

The MPC decided to remain focused on withdrawal of accommodation.  This is expected to ensure that inflation progressively aligns with the target of 4%, while supporting growth.

Retail inflation was 6.4% in the second quarter of 2023-24

Tushar Chakrabarty (tushar@prsindia.org)

Consumer Price Index (CPI) inflation was 6.4% in the second quarter (July-September) of 2023-24.[2]  This was lower than the CPI inflation of 7% in the corresponding quarter of 2022-23, and 4.6% in the first quarter (April-June) of 2023-24.  In the first quarter of 2023-24, CPI inflation decreased from 7.4% in July 2023 to 5% in September 2023.  

Food inflation averaged 9.3% in the second quarter of 2023-24, higher than 7.6% in the same quarter last year.  In the first quarter of 2023-24, food inflation averaged 3.8%. 

Wholesale Price Index (WPI) inflation was -0.7% in the second quarter of 2023-24, as compared to 12.4% in the corresponding quarter of 2022-23.[3]  In the first quarter of 2023-24, WPI inflation was -2.9%.  

Figure 1: Inflation in Q2 2023-24, (% change, year-on-year)
  
Note: CPI data for September 2023 is provisional.   WPI data for August and September 2023 is provisional.
Sources: MoSPI; Ministry of Commerce and Industry; PRS.

 

Finance

RBI releases circular to regulate cross border payment aggregators

Pratinav Damani (pratinav@prsindia.org)

The Reserve Bank of India (RBI) released a circular on the regulation of cross-border payment aggregators (PA-CB).[4]   These entities facilitate online cross-border transactions for the import and export of permissible goods and services.  The regulations will apply to non-bank payment aggregators.  Key features include: 

• Applicability and scope:  Non-bank aggregators will be required to apply with RBI for authorisation by April 30, 2024.  Aggregators can continue to offer services until receiving authorisation from the RBI.   However, they must comply with the 2020 Guidelines on Regulation of Payment Aggregators and Payment Gateways by January 31, 2024.[5]  Existing non-bank aggregators will be required to wind-up operations by July 31, 2024 if they do not apply for authorisation or meet certain other requirements.  

• Requirements for aggregators:  The circular requires existing non-bank aggregators to have a minimum net worth of Rs 15 crore when they submit their application for authorisation.  They must have a minimum net worth of Rs 25 crore by March 31, 2026.  New aggregators must have a net worth of Rs 25 crore by the third financial year of operations.  Import and export transactions processed by PA-CBs cannot exceed a value of Rs 25 lakh per unit of goods or services purchased/sold.  

SEBI revises framework for debt issuance by large corporates

Tushar Chakrabarty (tushar@prsindia.org)

The Securities and Exchange Board of India (SEBI) revised the framework for debt issuances by large corporates.[6]^,[7]  Under the SEBI regulations, large corporates must raise 25% of their incremental borrowings in a financial year by issuing debt securities (such as bonds).  Large corporates include all listed entities (excluding banks) that have an outstanding long-term borrowing of at least Rs 100 crore, among other criteria.  This amount does not include external commercial borrowings and borrowings between a parent entity and its subsidiaries.  The revised framework increases this threshold to Rs 1,000 crore.   In addition, the following will not be considered a part of the outstanding long-term borrowing: (i) grants or deposits received as per the directions of the central government, (ii) borrowings arising on account of interest capitalisation, and (iii) borrowings for the purposes of mergers and acquisitions.  The revised framework will be applicable from April 1, 2024 or January 1, 2024, depending on the financial year followed by an entity. 

Value of term deposits eligible for premature withdrawal increased

Pratinav Damani (pratinav@prsindia.org)

The Reserve Bank of India (RBI) has amended the Master Direction on Interest Rate on Deposits and the Master Direction on Co-operative Banks – Interest Rate on Deposits.[8]^,[9]^,[10]   Under these directions, banks are allowed to accept term deposits without a premature withdrawal option.   However, term deposits up to Rs 15 lakh must have a premature withdrawal facility.  A term deposit is a deposit for a fixed term in which a bank pays interest on the deposit.[11]  As per the amendments, term deposits up to one crore rupees must offer a premature withdrawal option.  This shall also apply to Non-Resident (External) Deposit (NRE) and Non-Resident Ordinary Deposit (NRO) accounts.  

Guidelines for Bima Vahaks released

Pratinav Damani (pratinav@prsindia.org)

The Insurance Regulatory and Development Authority of India (IRDAI) released the Insurance Regulatory and Development Authority of India (Bima Vahak) Guidelines, 2023.[12]  The guidelines will come into force when the Bima Vistaar scheme will be launched.  Bima Vistaar seeks to provide insurance cover for rural population.  A Bima Vahak is an individual engaged for providing insurance services.  The guidelines aim to deploy Bima Vahaks in every Gram Panchayat before December 31, 2024.   Key features include: 

• Appointment and engagement:  The Bima Vahak can be a corporate or an individual appointed by the insurer for the sale of Bima Vistaar and other insurance products, and to facilitate policy and claims servicing.  The insurer will be responsible for the actions and conduct of Bima Vahaks engaged by them.  Various consumer protection measures will be implemented.  These include: (i) Bima Vahaks will only collect insurance premiums, (ii) ID cards will be issued to the Bima Vahaks, (iii) collection of premiums will be done through electronic handheld devices, and (iv) contact details of the grievance redressal officer shall be prominently displayed at retail outlets of corporate Bima Vahaks.  

• Formulation of policy:  The Life Insurance Council and the General Insurance Council will develop a common set of operational and conduct standard for Bima Vahaks.  These standards must include: (i) minimum educational qualifications, (ii) training requirements such as the KYC process and personal data protection, and (iii) the maintenance of database including confidentiality of data of all policies.   

SEBI constitutes working groups to recommend simplification of regulations

Pratinav Damani (pratinav@prsindia.org)

The Securities and Exchange Board of India (SEBI) has constituted 16 working groups to provide recommendations on the simplification of existing regulations and review compliance requirements under such regulations.[13]   These regulations apply to various SEBI-regulated entities.  These include: (i) equity listed and debt issuer companies, (ii) mutual funds, (iii) stock brokers, (iv) alternative investment funds, and (v) portfolio managers.   

Comments on aforesaid subjects are invited by November 6, 2023.  

Draft directions on risk mitigation of outsourced financial services released

Pratinav Damani (pratinav@prsindia.org)

The Reserve Bank of India (RBI) has released the draft Reserve Bank of India (Managing Risks and Code of Conduct in Outsourcing of Financial Services) Directions, 2023 for comments.[14]  The draft directions will apply to regulated entities such as commercial banks, non-banking financial companies, and credit information companies.  The draft directions seek to manage risks in activities that are outsourced by regulated entities which can have a material impact on business.  Regulated entities use outsourcing to reduce costs or avail expertise not available internally.  Key features of the draft directions include: 

• Applicability:  The directions will apply to material outsourcing arrangements.  In such arrangements, certain activities are outsourced to third parties.  In the event of failure of service or a security breach, such arrangements can: (i) impact business operations, reputations, strategies, or profitability, (ii) affect the ability of the entity to comply with laws, or (iii) have a material impact on consumers of the entity.  Activities that can be outsourced include: (i) application processing (for loans or credit cards), (ii) middle and bank office operations (electronic funds transfer, custody operations, and order processing), and (iii) cash management.  Activities that cannot be outsourced include core management functions such as policy formulation, according sanctions for loans, management of investment portfolios, compliance functions, and internal audits.  

• Regulation of outsourced activities:  The draft directions do not require entities to seek approval from RBI before outsourcing.  However, activities outsourced will be scrutinised by the appropriate supervisory authority (RBI, NABARD or NHB).  Entities will have to establish an inventory of services provided to them and their dependency on third parties.  They must also ensure that: (i) the service provider does not interfere or impede in the activities of the entity, (ii) the service provider is not owned or controlled by director or key managerial personnel of the entity, and (iii) outsourcing arrangements do not affect the rights of consumers.   Regulated entities will be responsible for activities carried out in an outsourcing arrangement.  

Comments are invited by November 28, 2023. 

 

 Agriculture

Tushar Chakrabarty (tushar@prsindia.org)

Cabinet approves minimum support prices for Rabi crops for 2024-25

The Cabinet Committee on Economic Affairs approved the minimum support prices (MSP) for Rabi crops for the 2024-25 marketing season.[15]  The MSP for wheat has been fixed at Rs 2,275 per quintal, an increase of 7.1% over 2023-24.   The following table shows the MSPs notified for the marketing season 2024-25, compared to MSPs for 2023-24.

Table 1: MSPs approved for Rabi crops for the 2024-25 season (in Rs per quintal)

Crop	2023-24	2024-25	% change
Wheat	2,125	2,275	7.1%
Barley	1,735	1,850	6.6%
Gram	5,335	5,440	2.0%
Lentil (Masur)	6,000	6,425	7.1%
Rapeseed and Mustard	5,450	5,650	3.7%
Safflower	5,650	5,800	2.7%

Sources: Press Information Bureau, Ministry of Agriculture and Farmers Welfare; PRS.

 

Law and Justice

Alaya Purewal (alaya@prsindia.org)

Supreme Court’s verdict on the same-sex marriage plea

The Supreme Court gave its verdict over the right to marriage for same-sex couples.[16]  The question before the Court was whether the Special Marriage Act, 1954 violated the fundamental right to equality and liberty by not recognising marriage between queer couples.[17]  The Supreme Court rejected the plea for a queer couple’s right to marry.  The five-judge Bench unanimously agreed that there is no fundamental right to marry and same-sex marriages cannot be read into the 1954 Act.  It stated that the intention of Parliament was to provide heterosexual couples belonging to different faiths the option to marry under the 1954 Act.  As marriage is a concurrent subject, the Court concluded that it is within the domain of Parliament and the State Legislatures to enact laws recognising same-sex marriage.[18]  

Further, in a 3:2 majority, the bench held that queer people cannot: (i) enter into civil unions and (ii) adopt children.  The Bench unanimously agreed that transgender people in heterosexual relationships have the right to marry under the current legal framework.  Additionally, the Bench called for setting up a high-powered Committee chaired by the Cabinet Secretary, to evaluate the entitlements and rights of queer persons.   Queer is an umbrella term used for individuals who are not heterosexual.   

 

Health

Rutvik Upadhyaya (rutvik@prsindia.org)

Supreme Court permits use of donor gametes for surrogacy

In an order, the Supreme Court permitted the use of donor gametes for surrogacy.[19]  It read down the Surrogacy (Regulation) Amendment Rules, 2023, that prohibited the use of donor gametes for an intending couple.[20]  An intending couple is one that has a medical condition that necessitates surrogacy.

Gametes are reproductive cells.   Male gametes are sperm, whereas female gametes are eggs or oocytes.[21]  In India, surrogacy is regulated under the Surrogacy (Regulation) Act, 2021 and the Surrogacy (Regulation) Rules, 2022.²¹,[22]  The Act defines surrogacy as a practice where a woman gives birth to a child for an intending couple or woman, and agrees to hand the child over to them after the birth.²¹  

The Rules state that a woman may choose surrogacy if she is faced with medical conditions such as a missing or abnormal uterus.²²  The Court observed that such situations could also include the inability to produce her own eggs.  It held the 2023 amendment to be in contradiction to this provision.   It further held that restrictions on surrogacy cannot contradict the right of a woman to avail surrogacy in aforesaid circumstances.     

The Act necessitates a child born out of surrogacy to be genetically related to the intending couple.  The Court held genetic linkage with the father to be sufficient in cases where surrogacy medically requires donor eggs.
 

Power

Renewable energy consumption obligation notified for the 2024-30 period

Priyadarshini Jain (priyadarshini@prsindia.org)

The Ministry of Power notified the minimum renewable energy consumption obligation for the 2024-2030 period (as shown in Table 1).[23]  The notification has been issued under the Energy Conservation Act, 2001.[24]  The Act empowers the central government to mandate certain consumers to use a minimum amount of energy from non-fossil sources.  The obligation will have to be met directly, or through purchase of renewable energy certificates (issued to those surpassing their target). 

Table 2: Year-wise and source-wise minimum renewable energy consumption obligation

Year	Wind	Hydro	Distributed RE	Other	Total
2024-25	0.7%	0.4%	1.5%	27.4%	29.9%
2025-26	1.5%	1.2%	2.1%	28.2%	33.0%
2026-27	2.0%	1.3%	2.7%	29.9%	36.0%
2027-28	2.5%	1.4%	3.3%	31.6%	38.8%
2028-29	3.0%	1.4%	3.9%	33.1%	41.4%
2029-30	3.5%	1.3%	4.5%	34.0%	43.3%

Sources: S.O. 4617 (E), Ministry of Power; PRS.

Key features of the notification include: 

• Applicability:  The obligation will apply to: (i) electricity distribution licensees, and (ii) open access consumers and captive users among other designated consumers under the Act.   Designated consumers include industries such as mining transport, and commercial buildings.  Open access consumers are those who procure power from generators directly.  Captive users are entities that generate electricity for their own consumption.  

• From April 1, 2024, renewable purchase obligation (RPO) for distribution licensees under the Electricity Act, 2003 will cease to exist.[25]  Note that RPO also includes an obligation to utilise energy storage systems.

• For open-access consumers and captive users, the consumption obligation will apply to the extent of consumption from sources other than distribution licensees.  Further, source-specific targets will not apply to them.

Draft notification on renewable generation obligation released for feedback

Pratinav Damani (pratinav@prsindia.org)

The Ministry of Power released a draft notification on the renewable generation obligation for coal/lignite-based power plants.[26]  The notification has been released under sub-section section (x) of section 14 of the Energy Conservation Act, 2001.[27]  The Act mandates that a certain amount of energy must be consumed from non-fossil sources.  The notification requires the coal/lignite-based power plants to supply a minimum percentage of renewable energy (Table 3).  For meeting this obligation, the plant operators may establish renewable energy generation capacity, or procure from other generators and supply.  The obligation will be computed in terms of annual share of RE generation in the total generation by the plant (both conventional and RE generation taken together).

Table 3: Proposed timeline to meet renewable generation obligation

Commercial operation date of generating station	Minimum renewable generation obligation (%)	Date for compliance
On or before March 31, 2023	6%	April 1, 2026
	10%	April 1, 2028
April 1, 2023 to March 31, 2025	10%	April 1, 2025
April 1, 2025 onwards	10%	From the date of commercial operation

Source:   No. 09/02/2022-RCM/NRE, Draft Notification on Renewable Generation Obligation, Ministry of Power

The renewable energy may be supplied on commercial principles, independent of existing agreements for purchase of its conventional power.  The obligation will not apply to captive generators.  Captive generators are entities which produce power for their own consumption.  Failure to fulfil the obligation will attract a penalty as specified in the Act (up to Rs 10 lakh).27   Every subsequent non-compliance will attract a maximum penalty of Rs 10,000 per day. 

R&D roadmap for green hydrogen released

Priyadarshini Jain (priyadarshini@prsindia.org)

The Ministry of New and Renewable Energy released an R&D roadmap for a green hydrogen ecosystem in India.[28]   This roadmap has been proposed under the National Green Hydrogen Mission.  The Mission has been set up to promote green hydrogen and its derived products such as green ammonia and green methanol.[29]  The roadmap identifies R&D projects in the areas of green hydrogen production, storage, transport, end-use applications, and safety.  It focuses on developing new materials, technologies, and infrastructure to improve the efficiency, reliability, and cost-effectiveness of green hydrogen.

The roadmap seeks to facilitate a public-private partnership framework for R&D.  It recommends setting up a dedicated R&D fund and attracting venture capital.  It proposes to establish centres of excellence in the area of green hydrogen.   It also recommends fostering a network of industry, academia, and government, to ensure seamless transfer and commercialisation of new technology.

 

Environment

Mandvi Gaur (mandvi@prsindia.org)

Rules to enhance battery waste management regulations notified

The Ministry of Environment, Forest and Climate Change notified amendments to the Battery Waste Management Rules, 2022.[30]^,[31]  The Rules have been framed under the Environment Protection Act, 1986.[32]  The Rules introduced Extended Producer Responsibility (EPR) for battery producers, to ensure environmentally sound management of batteries.  The Amendment includes mandatory waste battery collection, recycling or refurbishment targets for electric vehicles battery among other changes.  Key features of the Amendment include: 

• Functions of producer:  Under the 2022 Rules, producers are responsible for recycling or refurbishing batteries they introduced to the market.  The Amendments widen the ambit to include batteries used by producers for their own purposes.  They introduce mandatory waste battery collection, recycling or refurbishment targets for electric vehicle battery of three wheelers, including e-rickshaw and e-cart.  For instance, for the year 2026-2027, the mandatory waste battery collection target and 100% of refurbishment or recycling of the collection target in terms of weight, must be at least 70% of the quantity of battery placed in the market in 2021-22.

• EPR certification:  As per the Amendments, the CPCB will ensure that each EPR certificate is issued based on the weight of processed or refurbished waste batteries.  It will also set the highest and lowest prices for EPR certificates.  The cost associated with obtaining an EPR certificate depends on size, and nature of the business. Electronic trading platforms for EPR certificates may be established for trading between obligated entities, following CPCB guidelines.  Producers are automatically registered as producer of waste battery, if the CPCB does not reject their application within two weeks.  Further, the CPCB will prepare an annual report, which will include EPR targets, recycling, and environmental compensation utilisation.   The CPCB will also share relevant producer information with the State Pollution Control Boards through an online portal. 

Draft Rules to label eco-friendly products

The Ministry of Environment, Forest and Climate Change notified the Draft Ecomark Certification Rules, 2023 under the Environment Protection Act, 1986.[33]  The Rules have been framed in pursuance of the ‘Ecomark’ Scheme, 1991.[34]  The Scheme provides for the accreditation of consumer products meeting certain environmental standards.  The Draft Rules seek to promote eco-friendly products.  Key features include: 

• Criteria for Ecomark:  Criteria for each product/product category will be notified by the central government.   Certification for quality and safety from national or international Standards bodies, or mandate of quality control orders will be pre-requisite for Ecomark.  Products will be examined on grounds such as use of natural resources and emissions and waste from production processes as compared to similar products, and suitability for recycling.  

• Role of CPCB:   The Central Pollution Control Board (CPCB) will administer the Rules. Responsibilities of the CPCB include: (i) identifying products to be covered, (ii) constituting technical committees to develop criteria for certification, (iii) empanelling and registering Ecomark verifiers, and (iv) issuing E certificate.   CPCB may also review, suspend, or cancel a certificate.  Under the Rules, Ecomark verifiers may be designated to verify compliance, undertake conformity assessment, and submit report to CPCB for grant or renewal of certificate.

• Steering committee:  The Rules constitute a Steering Committee to oversee the implementation.  The Committee may also levy penalties for false disclosures or claims. 

• Market surveillance:  The Rules require CPCB to conduct market surveillance by itself or through  empanelled third-parties.  This will include picking samples from market and raiding suspected places. 

Rules on award of green credits to incentivise environmental actions notified

The Ministry of Environment, Forest and Climate Change notified the Green Credit Rules, 2023.[35]  The Rules seek to create a market mechanism to incentivise actions relating to protection, preservation, or conservation of the environment.  Green credits will be awarded for voluntary action in specified areas including:  (i) tree plantation,  (ii) waste management,  (iii) sustainable building and infrastructure, and  (iv) reducing air pollution.  Such credits may subsequently be traded.  Key features of the Rules include: 

• Methodology:  Thresholds and benchmarks will be developed for each activity for the issuance of green credits.  The value of green credit will be based on factors quantifying the environmental impact of these activities.  Such factors include resource requirements, scale, and scope.
• Steering Committee:  A Steering Committee will be set up which will be responsible for the governance of the programme.  It will consist of members from certain Ministries, domain experts, industry associations, and other stakeholders.  
• Implementing agency:  The Indian Council of Forestry Research and Education will implement the programme.   It will develop guidelines, processes, and procedures for the award and the trading of green credits.  It will create a green credit registry containing all information relating to the issuance, transfer, and acquisition of green credits.  It will also accredit entities as Accredited Green Credit Verifiers to conduct verification for the grant of green credits.

Draft methodology on green plantation was released for comments till November 6, 2023. 

Draft rules to enhance plastic waste management regulations, released

Mandvi Gaur (mandvi@prsindia.org)

The Ministry of Environment, Forest and Climate Change released draft amendment to the Plastic Waste Management Rules, 2016.[36]^,[37]  The Rules have been framed under the Environment Protection Act, 1986.[38]  The Rules specify responsibilities for producers and manufacturers of plastic such as: (i) collection of used multi-layered plastic, (ii) obtaining valid registration from Central/ State Pollution Control Board prior to production.   The Draft Rules seek to update and enhance regulatory measures such as extended producer responsibility (EPR), management of pre-consumer plastic waste, and usage of compostable and biodegradable plastics.  Manufacturers will be required to register on the centralised online portal to sell/ provide/ arrange plastic to be used as raw material.  Key features of the Draft Rules include: 

• EPR Obligations:  The Draft Rules extend EPR obligations to manufacturers and importers of plastic raw materials, including those dealing with micro and small enterprises.  To avoid mixing of plastic waste with solid waste, the EPR obligated entities, including the producers and importers of plastic raw material, can operate schemes to facilitate waste collection such as deposit refund system.  The scheme allows consumers to bring back their waste to collect a refundable deposit.

• Management of compostable and biodegradable plastics:  The Draft Rules introduces regulatory measures for compostable and biodegradable plastics.  The manufacturers of these plastics must report on the quantum of: (i) plastics introduced in the market, and (ii) pre-consumer waste generated.   The Bureau of Indian Standards will prescribe separate colour/ marking for these plastics.  Each item must bear labelling of the time and site required by it to biodegrade. 

• Role of local authorities:  Every local body and Panchayati Raj Institution at district level will perform multiple duties including:   (i) assessing the plastic waste management infrastructure, (ii) projection of plastic waste to be generated, and (iii) framing and implementing byelaws.

 

Mines

Mandvi Gaur (mandvi@prsindia.org)

Amendment to determine prices of lithium, rare earth elements and niobium notified

The Ministry of Mines notified amendments to the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016.[39]  The Rules lay down the processes and criteria for acquiring a prospecting license and mining lease.  The Rules are framed under the Mines and Minerals (Development and Regulation) Act, 1957.[40]  The 2023 Amendment delisted six minerals, including lithium, niobium and rare earth elements from the list of atomic minerals.[41]  This enables auction of these minerals to the private sector.  Key features of the Amendment Rules include: 

• Calculation of Metal Prices:  The Amendment Rules provide the manner for calculation of average sale price (ASP) of lithium, rare earth elements and niobium.  ASP is the key parameter for determining the value of minerals for which the mineral block is being auctioned.  It is an important factor for auctions, calculating revenue for government, among other things.  

• The Indian Bureau of Mines (IBM) publishes the ASP of all metals in Indian Rupees.  It is determined by multiplying the price of metals by the average reference rate of the RBI for the corresponding month, using prices published by reputable metal exchange sources. 

Table 4: Calculation of Prices

Metal	Basis	Marketplace
Lithium	weekly prices of specified lithium compounds published monthly	London Metal Exchange
Rare earth elements	the percentage of individual rare earth oxide contained in the ore multiplied by the average sale price of such rare earth oxide	United States Geological Survey (USGS) or other reputable sources
Niobium	prices published by the USGS or other trusted sources multiplied by the average reference rate.	United States Geological Survey (USGS) or other reputable sources

Source: G.S.R 737(E), ‘The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Amendment) Rules, 2023’, Ministry of Mines; PRS.

Committee submits report on misclassification of iron ore grades and other minerals

The Committee constituted by Ministry of Mines (Chair: Dr. Veena Kumari Dermal) to examine the issue of ‘misclassification of grades of iron ore and other minerals’, submitted its report on October 4, 2023.[43]  Misreporting of mineral grades, mis-representation of production data, and illegal transportation of minerals, affects state revenues. Key recommendations include: 

• System for mineral sampling and analysis:  The Committee noted that the major iron ore-producing states (Odisha, Chhattisgarh, Jharkhand, and Karnataka) account for around 96% of India’s iron-ore production.  It observed that mineral sampling and analysis should include: (i) an IT-enabled system for minimal human intervention, (ii) technology suitable for large and small mines, and (iii) a system that reduces time-taken in sampling.  The Committee recommended that state governments develop: (i) an IT-based grade information system for unbiased sampling, (ii) on the spot and automated sampling and (iii) mandatory videography of sampling process.  

• Transportation of minerals:  The Committee suggested implementing GPS-enabled vehicles equipped with radio frequency identification (RFID) tags in mining operations.  These RFID tags provide unique identification and record information such as vehicle number, time, and tonnage.  This information can be checked online at various points, including government weighbridges, and plant locations.  Further, it suggested using CCTV system at various mining locations.  Geo-fencing is suggested to be applied to mine boundaries, unloading points, internal transportation routes, and other critical areas.  This may allow for detection of any unusual activity.

• Blockchain for accounting:  The Committee noted that the mining industry faces challenges in terms of manual processes, right from the extraction to utilisation of mineral.  It observed that blockchain technology can address these issues by providing a transparent and secure database for tracking the value chain and supply chain of minerals.  The Committee recommends adopting blockchain technology in the mining sector, starting with a pilot project for high-value minerals like gold, copper, and zinc. 

 

Information Technology

Pratinav Damani (pratinav@prsindia.org)

Report of working groups on AI released

The Ministry of Electronics and Information Technology had set up seven working groups to provide recommendations on various facets of Artificial Intelligence (AI) for India.[44]   These include government data management, startups ecosystem development, centres of excellence, skill development, computational infrastructure, and chipsets for AI.  The Ministry released a report on the recommendations of these working groups.  Key observations and recommendations include:

• Government data: The Draft National Data Governance Policy, released by the Ministry in 2022, had proposed setting up: (i) the India Dataset Platform, for making public datasets accessible for AI, and (ii) the National Data Management Office, a nodal agency for governing data collection, processing, and management by the government.[45]  Two working groups have worked out the details for operationalising these initiatives.   Key recommendations include: (i) setting up the NDMO as an executive agency, (ii) functions of NDMO to include developing processes, standards, and guidelines for handling of data by various government entities, and (iii) encouraging non-government entities to contribute datasets to the Platform.

• Infrastructure:  The working group on computational infrastructure recommended setting up best-in-class infrastructure at five locations in India.  It also recommended that infrastructure should be offered as a service and transparent pricing models should be implemented.  Further, private-sector investment in AI-based infrastructure should be encouraged with incentives such as tax breaks, subsidies, and public-private partnerships.

• Skill development:  The working group on skills recommended integrating AI-related education starting from the secondary school level.  It observed that the curriculum needs rapid upgradation given the fast pace of development of the technology.  It recommended setting up a central curriculum repository, from which a model curriculum may be selected.  It also observed that the quality of faculty is a significant concern, hence, training and upskilling programs should be introduced for them.  A mechanism for faculties to intern with the industry should be developed.

 

Education 

Rutvik Upadhyaya (rutvik@prsindia.org)

Guidelines for equitable and inclusive education, released

The Ministry of Education released the ‘Guidelines and Implementation Framework for Equitable and Inclusive Education’.[46] These Guidelines are based on recommendations of the National Education Policy (NEP), 2020.  Under the NEP, recommendations for achieving equitable and inclusive education include: (i) ensuring universal access to early childhood care and education, (ii) improving children’s health and nutrition through community involvement in the schooling system, and (iii) curtailing dropout rates by offering open and distance learning programmes.  The Guidelines are aimed at private schools, home based education, open system of schooling and alternative forms of schooling.  Key recommendations include: 

• Early Childhood Care and Education (ECCE):  The NEP outlines that ECCE will be delivered through anganwadis, pre-schools, and the first and second grades of primary school.  The Guidelines recommend: (i) early identification and intervention for children with disabilities, (ii) imparting foundational literacy and numeracy through local languages, signs, play-based activities, and (iii) introducing ECCE programmes in alternative forms of schooling, especially in tribal areas.  To implements these recommendations, the Guidelines suggest sensitising and training teachers and anganwadi workers through certified ECCE courses. 

• Creating inclusive schools:   Schools are recommended to ensure the inclusion of all children by: (i) making the curriculum flexible and socially accommodative, (ii) using oral, auditory and tactile aids in teaching, (iii) not rejecting children due to lack of resources, and (iv) providing access to speech therapists and psychologists in school.  To implement this, the guidelines recommend setting up Equitable and Inclusive Education Cells in districts, blocks, school clusters and schools.   The Cell will be responsible for: (i) supporting schools with financial resources and (ii) monitoring activities according to the guidelines.  

• Home-based education:  The guidelines recommend: (i) creating a record of students opting for home-based education at the district level, (ii) conducting audits of such students by a teacher, (iii) equipping the home learning space with infrastructure for children with disabilities.  

Draft Guidelines for suicide prevention in schools, released 

The Department of School Education and Literacy released guidelines for the prevention of suicide in schools.[47]  The guidelines delineate risk factors associated with suicide and provide an action plan for schools to: (i) promote a positive environment, (ii) build capacity for suicide prevention, and (iii) support students at risk.  Key recommendations include:

• School Wellness Team:  The guidelines recommend setting up a School Wellness Team (SWT) in each school to aid students identified to be at the risk of suicide.  Such students are identified based on warning signs that include withdrawal from social interaction, talk about self-harm.  If a student is identified as being at risk, the SWT will take immediate action that includes approaching the student with care and preventing self-harm.   The SWT will also organise activities creating awareness about mental well-being.  It will be headed by the school principal and will include: (i) the school counsellor, (ii) one teacher from each school level (including middle and secondary), (iii) a parent representative, and (iv) a school medical staff.   

• Capacity building:  The guidelines recommend steps to build the capacity of stakeholders such as teachers, students and parents, in preventing suicide.  These include conducting orientation programmes throughout the academic year that help: (i) recognise risk factors associated with suicide and identify warning signs in students, (ii) effectively use resources for mental health, such as counselling helplines, (iii) support students during stressful experiences, such as exams.  Such capacity building exercises for parents and school teachers will be conducted by school counsellors or identified social workers. 

• Immediate response for students at risk:  The guidelines delineate responses that can be directed towards students displaying warning signs of self-harm.  Responses include: (i) approaching the student with care, (ii) speaking to them gently, (iii) listening to them attentively, (iv) suggesting they speak to a teacher or counsellor, (v) informing members of the SWT about the situation. 

• Appraisal: The experience of implementing these guidelines will be periodically analysed by the SWT and various stakeholders such as teachers and parents.  Insights gained from this review will be used to improve existing plan of implementing these guidelines.

 

Commerce

Pratinav Damani (pratinav@prsindia.org)

National Turmeric Board constituted

The Department of Commerce has constituted a National Turmeric Board.[48]   India is the largest producer, consumer, and exporter of turmeric in the world.  The objectives of the Board include: (i) promote new product development and value addition in turmeric, (ii) facilitate market research in potential international markets, (iii) facilitate creation and improvement of infrastructure and logistics for exports of turmeric products, (iv) promote quality compliance and safety standards, and (v) encourage studies, clinical trials, and research on the benefits of turmeric.  

The 18-member Board includes: (i) a chairperson appointed by the central government, (ii) four members representing the Ministries/Departments of Commerce, Agriculture, AYUSH and, Pharmaceuticals, (iii) three members representing turmeric producing states on a rotation basis, (iv) three members (nominated by the central government) representing turmeric growers, and (v) the secretary of the Spices Board.  The term of the chairperson and members shall be a maximum of three years from the date of appointment.  The Board shall hold at least two meetings in a year. 

 

Priyadarshini Jain (priyadarshini@prsindia.org)

Amendments to Aircraft rules notified

The Ministry of Civil Aviation notified amendments to the Aircraft Rules, 1937.[49]^,[50]  The 1937 Rules have been notified under the Aircraft Act, 1934.[51]  The Rules provide for licensing various aviation personnel including pilots, air traffic controllers and aircraft maintenance engineers.⁵⁰ Key amendments include:

• Extension of license validity: The validity of the license to operate aircraft for airline transport pilots and commercial pilots has been increased from five to 10 years.  The validation of foreign licenses for operating is cancelled.

• Display of false lights: The 1937 Rules prohibit the display of any light which may be mistaken for an aeronautical ground light or beacon in a five-kilometre radius of an aerodrome.   The amended Rules increase the radius where such lights are prohibited from five kilometres to around nine kilometres (five nautical miles).  The period to extinguish such lights after notice is served has been reduced from seven days to 24 hours.  It also specifies that such lights will include lantern lights, wish kites, and laser lights.   

Annexure

The subjects identified by various Parliamentary Standing Committees for examination are given below in the table below.  For a list of subjects identified by other committees, see our Monthly Policy Review of September 2023.   

Table 3: Subjects identified by the Standing Committees for examination during 2023-24

Housing and Urban Affairs

Smart Cities Mission: An evaluation.  Atal Mission for Rejuvenation and Urban Transformation (AMRUT) & AMRUT 2.0 Regional Rapid Transit System and role of NCRTC. Poverty Alleviation and creation of employment opportunities in Urban Areas: Deen Dayal Antyodaya Yojana- NULM. Swachh Bharat Mission (Urban). Implementation of The Real Estate (Regulation & Development) Act, 2016 (RERA) in urban areas-A Review. Redevelopment of General Pool Residential Accommodation (GPRA) colonies and measures for augmentation of Government residential quarters. Review of functioning of NBCC, HUDCO, Hindustan Prefab Limited (HPL), Directorate of Estates (DoE), Land and Development Office, NCRPB and DUAC. Review of functioning of DDA. Review of functioning of CPWD. Improving the standard and quality of living in urban cities- Decent housing, air quality, sewage treatment and drainage system, traffic management, etc.  Slums - Redevelopment, Improvement, Resettlement, Rehabilitation: the way forward. Need for formulating Master Plans for every city in the country for holistic development and Review of Implementation of Previous Master Plan with special emphasis on Cities of religious importance. Regularization of illegal colonies. People Centric Training, Capacity Building and sources of funding of the Urban Local Bodies (ULBs)/Municipal Bodies. Review of progress of various schemes of the Ministry viz. PMAY (U), PM SVANidhi, etc..

Railways

New lines/gauge conversion/ doubling/electrification and signalling in Indian Railways. Safety measures in Railway Operations. Performance of Production Units and Railway Workshops of Indian Railways. Corporate Social Responsibilities (CSR) related activities of PSUs of Indian Railways. Digitization in Indian Railways. Introduction of High Speed Trains. National Projects and Strategic Lines of Indian Railways. Last Mile Port connectivity with Indian Railways. Increasing freight related earnings of Indian Railways. Sub-urban train services of Indian Railways. Staff welfare measures in Indian Railways. Financing of projects of Indian Railways.

Consumer Affairs, Food and Public Distribution

Ministry of Consumer Affairs, Food & Public Distribution (Department of Food and Public Distribution) Food Security in India. Post-harvest Management of Foodgrains: Storage, Transport and Distribution. A Review of Foodgrains Procurement Scheme. PMGKAY (Integrated Food Security Scheme): A new paradigm in Food Security. Functioning of Warehousing Development and Regulatory Authority (WDRA). Edible Oil Industry – A Review. Strengthening Targeted Public Distribution System. Transforming Fair Price Shops. Ministry of Consumer Affairs, Food & Public Distribution (Department of Consumer Affairs) Protection of Consumer Rights on online platforms: e-commerce, dark patterns and social media influencers. Regulation of Packaged Commodities. Price Monitoring System of Essential Commodities. Initiatives in the North-East in the field of Consumer Rights Protection. Regulation of Weights and Measures with specific reference to Dispensing Machines at Fuel Stations. Management Systems Certifications by BIS. NTH Testing and calibration of products. Consumer Commissions in India. Technological interventions in consumer outreach program. Assaying and Hallmarking Centers: An Assessment. Consumer Cooperatives. Prevention of misuse of Emblems and Names.

Industry

Ministry of Power Energy Security in India – Emerging Scenario. Energy Transition and Sustainability. Electrification of Rural India – Targets and Achievements. Energy Efficiency and Conservation. Prospects of Thermal Power Plants in the light of enhanced Renewable Energy Target. Performance Review of Major Hydro Projects. Evaluation of Power Transmission Sector – Development of Transmission Network and its Management. Revamped Distribution Sector Scheme. Role of Power Sector Statutory Bodies, PSUs and Institutions in Development of Power Sector. Promotion of Electric Vehicles in India. Ministry of New and Renewable Energy Innovation and Technology adoption in MSMEs to enhance competitiveness and sustainability. Development and enhancement of competitiveness of MSMEs in the changed economic scenario. Initiatives taken for attracting investment and creating more job opportunities in the MSME Sector. Review of implementation of the policies and various programmes/ schemes for providing infrastructure and support service to MSMEs. Finding the ways to plug the shortcomings in the MSME Sector. Ministry of Heavy Industries Review of functioning of the Scheme on Enhancement of Competitiveness in the Indian Capital Goods Sector. Reasons for low performance in the industrial sector and the measures taken by the Ministry to address the problem. Reasons for Industries becoming sick and alternative measures to revive them.

Health and Family Welfare

Geriatric Healthcare in India. Cardio-vascular diseases in India-Preventive and Curative. Disease Surveillance System in the Country. Organ Transplantation in India. Micronutrient Deficiency Diseases in Children- Control and Management. Anti-Microbial Resistance in India. Educational and Training Infrastructure in Nursing and Paramedics. Ayushman Bharat-Health and Wellness Centers. Implementation of Ayushman Bharat- Pradhan Mantri Jan Aarogya Yojana Quality of Medical Education in India. Functioning of Central Government Health Scheme. Review of National Ayush Mission.

Personnel, Public Grievances, Law and Justice

Review of functioning of Tribunal System in the Country. Strengthening Legal Education in view of emerging challenges before the Legal Profession. Appointment of Notaries. Strengthening of Institutional Arbitration in India. Handling of Litigation by the Central Government. Review of the working of Legal Aid under the Legal Services Authorities Act, 1987. Review of Judicial Infrastructure. Review of Personal Laws. Strengthening the Process of Legislative Drafting. Review of the Right to Information Act, 2005, and Working of the Central Information Commission. Effectiveness of vigilance administration. Functioning of the Central Administrative Tribunal (CAT). Functioning of the Central Vigilance Commission (CVC). Effective redressal of Grievances by Strengthening the Public Grievances System. Judicial Processes and their reform: (i) Court proceedings and Judgements in regional languages. (ii) Pendency of cases under Contempt of Court. (iii) 24 x 7 Virtual Courts. (iv) Availability of Supreme Court and High Court Judgements in scheduled languages.  (v) Live streaming of Supreme Court and High Court proceedings.     16. Specific aspects of Election Processes and their reform:  (i) Initiatives for improving voter turnouts.  (ii) Remote voting/e-postal ballets for Indians residing overseas.

Finance

Performance review and regulation of insurance and banking sectors. Roadmap for $5 Trillion economy in light of global economic and geopolitical circumstances. India’s investment requirements for sustainable growth, particularly for climate adaptation and mitigation. Providing credit to the agricultural and rural sector including appraisal of NABARD’s role. Review of long-term public finances and debt at Centre and States. Monetization of public sector assets including disinvestment and asset recycling. Formal and informal employment trends. Global competitiveness of India’s direct tax regime. Issues relating to Non-Banking Financial Companies (NBFCs).