Highlights of this Issue
Consumer Price Index inflation was 4.2% in the second quarter of 2024-25
CPI inflation was lower than the same quarter last year (6.4%). Food inflation averaged 6.8% in the second quarter of 2024-25, with a steep rise in the month of September (9.2%) as compared to August (5.7%).
Supreme Court upholds law on citizenship for migrants from Bangladesh to Assam
The Court held that a separate provision for Assam was grounded in reasonable classification. It also held that cut-off dates in the Act are based on historical circumstances, and are thus, not arbitrary.
Supreme Court upholds states’ right to regulate Industrial Alcohol
The Supreme Court held that intoxicating liquor may also include alcohol other than potable alcohol. It also held that Parliament cannot enact a law to take control of the industry of intoxicating liquor.
Ministry of Corporate Affairs releases Guidelines for PM Internship Scheme
The Guidelines for the Pilot project specifies the criterion for companies, duration of the internship, eligibility for the internship, benefits to the interns, and the use of CSR funds by the companies.
Sports Ministry releases draft Bill on sports governance
The draft Bill establishes the Sports Regulatory Body of India. The Board will grant recognition to the National Olympic Committee, National Paralympic Committee and National Sports Federations of various sports.
Cabinet approves rationalisation of existing agricultural schemes
The Union Cabinet approved the rationalisation of all centrally-sponsored schemes under the Ministry of Agriculture and Farmers Welfare into two umbrella schemes.
Cabinet approves continuation of supply of free fortified rice
Free supply of fortified rice under all welfare schemes will continue until December 2028.
Cabinet approves Rs 1,000 crore funding for space-based startups
This fund would be deployed over a five-year period starting in 2025-26 and aims to benefit close to 40 space-based startups.
Environment Ministry invites comments on draft Liquid Waste Management Rules
These rules related to environmentally sound management of wastewater, faecal sludge, and utilisation of treated wastewater.
National Electricity Plan (Transmission) notified for 2022-32
As per the National Electricity Plan, 1.91 lakh circuit kilometre transmission lines are planned to be added in 2022-32.
Macroeconomic Development
Tushar Chakrabarty (tushar@prsindia.org)
Consumer Price Index inflation was 4.2% in the second quarter of 2024-25
Consumer Price Index (CPI) inflation was 4.2% in the second quarter (July-September) of 2024-25, lower than 6.4% in the same quarter last year.[1] In the first quarter (April-June) of 2024-25, CPI inflation was 4.9%.
Food inflation averaged 6.8% in the second quarter of 2024-25. This was lower as compared to food inflation of 9.4% in the corresponding quarter of 2023-24. In the first quarter of 2024-25, food inflation was 8.9%.
Wholesale Price Index (WPI) inflation was 1.8% in the second quarter of 2024-25, higher than the same quarter last year (-0.6%).[2] In the first quarter of 2024-25, WPI inflation averaged 2.5%.
Figure 1: Monthly inflation in Q1 of 2024-25 (% change, year-on-year)
Sources: MoSPI; Ministry of Commerce and Industry; PRS.
Repo rate kept unchanged at 6.5%
The Monetary Policy Committee (MPC) of the Reserve Bank of India kept the policy repo rate (the rate at which RBI lends money to banks) unchanged at 6.5%.[3] Other decisions of the Committee include:
The standing deposit facility rate (the rate at which 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 change their stance to neutral from its earlier disinflationary stance. It also decided to remain focused on keeping inflation in line with target of 4% while supporting growth.
Corporate Affairs
Tushar Chakrabarty (tushar@prsindia.org)
Guidelines released for pilot of Prime Minister’s internship scheme
The Ministry of Corporate Affairs released the guidelines for the Prime Minister’s Internship Scheme – Pilot Project.[4] The scheme was announced in the Budget for 2024-25 and aims to provide internships to one crore youth in five years. A pilot project of the scheme has been launched for 2024-25 with a target of providing 1.25 lakh internships. Key features of the guidelines include:
Criteria for companies: For offering internships, top 500 companies have been selected based on their average expenditure on corporate social responsibility (CSR) over last three years. Other companies can participate under the scheme with approval from the Ministry.
Duration: The internship duration must be for 12 months. At least half of this must be spent in actual working experience/job environment.
Eligibility for internship: Candidates aged between 21 and 24 years will be eligible to get internships. They should not be employed full-time or engaged in full-time education. However, candidates enrolled in online/distance learning programmes are eligible to apply. Other ineligible candidates include: (i) graduates from institutions such as IITs, IIMs, and National Law Universities, (ii) those with professional qualifications or a master’s degree, and (iii) those belonging to families with annual income exceeding eight lakh rupees in 2023-24.
Benefits to interns: Interns will be paid monthly assistance of Rs 5,000. The company will release Rs 500 each month to the intern from their CSR funds. Following this, the central government will pay the remaining Rs 4,500 to the candidate. Interns will also receive a one-time grant of Rs 6,000 from the central government on joining the internship location.
Use of CSR funds: Companies will bear the cost of training the interns from their CSR funds. Further, up to 5% of CSR expenditure incurred under the scheme may be classified as administrative costs by the company.
Law and Justice
Rutvik Upadhyaya (rutvik@prsindia.org)
SC upholds provision on citizenship for migrants from Bangladesh to Assam
With a 4:1 majority, the Supreme Court upheld provision of the Citizenship Act, 1955 providing a separate citizenship criterion for migrants from Bangladesh to Assam.[5],[6] According to this provision, any person of Indian origin who: (i) entered Assam from Bangladesh before January 1, 1966, and (ii) has been ordinarily residing in Assam since, is an Indian citizen. However, persons who migrated after January 1, 1966 and before March 25, 1971 will be conferred citizenship on completing 10 years from the date of detection as a foreigner. Upon registration, he will be deemed an Indian citizen but his name will be deleted from the electoral roll for 10 years.
Some of the key questions that the Supreme Court examined include whether: (i) Parliament has competence to pass such legislation, (ii) separate provision for Assam violates Article 14 of the constitution, and (iii) cut-off dates under the provision are arbitrary.
The Court ruled that Parliament has competence to pass any law on citizenship. This competence extends to legislating the provision in question.
The Court also ruled that a separate provision under the Act for Assam does not violate the right to equality (Article 14).[7] Assam and the rest of India are distinguishable on the basis of the unique political situation created in Assam by the influx of migrants. The Court also added that the cut-off dates under this provision are not arbitrary as they are based on specific historical events and circumstances.
Trade and Commerce
Shrusti Singh (shrusti@prsindia.org)
Supreme Court upholds states’ right to regulate industrial alcohol
The Supreme Court in a nine-judge bench judgement reversed an earlier seven-judge bench judgement, and upheld states’ right to regulate denatured spirit or industrial alcohol.[8] Under List II of the Seventh Schedule of the Constitution, states are empowered to regulate the production, manufacture, possession, transport, purchase, and sale of intoxicating liquors.[9]
The Court was reviewing the division of power between the Union and states with respect to regulation and taxation of various types of alcohol. The Court examined whether the Union’s control of industries in public interest (Entry 52 of List I) overrides states’ right to regulate intoxicating liquors (Entry 8 of List II). The Court held that the Constitution empowers states to regulate intoxicating liquors from the stage of raw materials to its consumption. It further held that Parliament cannot enact a law to take control of the industry of intoxicating liquor. Doing so would lead to states losing their exclusive legislative competence to regulate such industry.
Another question the Court examined was whether intoxicating liquors include alcohol other than potable alcohol. It held that intoxicating liquors under Entry 8 of List II covers all alcohol that could be used noxiously to the detriment of public health. This includes rectified spirits and industrial spirits (not fit for human consumption) used in the production of potable alcohol and other products.
Agriculture
Shrusti Singh (shrusti@prsindia.org)
Cabinet approves rationalisation of schemes for sustainable agriculture and food security
The Union Cabinet approved the rationalisation of all existing centrally sponsored schemes under the Ministry of Agriculture and Farmers Welfare into two umbrella schemes: (i) Pradhan Mantri Rashtriya Krishi Vikas Yojana (PM-RKVY), and (i) Krishonnati Yojana.[10]
The PM-RKVY will be implemented with an outlay of Rs 57,075 crore to promote sustainable agriculture. Some of the schemes under PM-RKVY include: (i) Soil Health Management, (ii) Rainfed Area Development, (iii) Agro Forestry, and (iv) Agricultural Mechanisation. State governments will have the flexibility to reallocate funds from one component to another as per their requirements.
The Krishonnati Yojana will be targeted at achieving food security for self-sufficiency with a proposed outlay of Rs 44,247 crore.
Cabinet approves mission for oilseeds production
The Union Cabinet approved the National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds).[11] The Mission will be implemented with a proposed allocation of Rs 10,103 crore between 2024-25 to 2030-31. The mission aims to increase production of primary oilseed crops from 39 million tonne in 2022-23 to 70 million tonne by 2030-31. These include Rapeseed-Mustard, Groundnut, Soybean, Sunflower, and Sesamum. Domestic edible oil production in 2023-24 is estimated to be 12 million tonne.[12] Along with NMEO – Oil Palm, this mission targets to increase domestic edible oil production to 25 million tonne by 2030-31. This estimated increase in domestic production is expected to cover 72% of India’s projected requirement by 2030-31. 65 new seed hubs and 50 seed storage units will be setup in the public sector to improve seed production infrastructure.
Minimum Support Prices for Rabi Crops approved
The Cabinet Committee on Economic Affairs approved an increase in the minimum support prices (MSP) for all mandated Rabi crops for the marketing season 2025-26 (see Table 1).[13] MSP refers to the assured price at which crops are procured from farmers by the central government.[14] MSP for wheat has increased by 6.6%. The highest increase in MSP has been announced for Barley (7%).
Table 1: Minimum Support Prices for rabi crops for Marketing Season 2025-26
Crops |
MSP 2024-25 |
MSP 2025-26 |
% change |
Wheat |
2,275 |
2,425 |
6.6% |
Barley |
1,850 |
1,980 |
7.0% |
Gram |
5,440 |
5,650 |
3.9% |
Lentil (Masur) |
6,425 |
6,700 |
4.3% |
Rapeseed and Mustard |
5,650 |
5,950 |
5.3% |
Safflower |
5,800 |
5,940 |
2.4% |
Sources: Press Information Bureau; PRS.
Cabinet approves continuation of supply of free fortified rice under PMGKAY
The Union Cabinet approved the continuation of supply of free fortified rice under all welfare schemes including the Pradhan Mantri Garib Kalyan Anna Yojana.[15] The free supply has been extended from July 2024 to December 2028. Rice fortification involves adding rice kernels enriched with micronutrients to regular rice. It will be implemented as a central sector scheme funded by the Union government.
Youth Affairs and Sports
Rutvik Upadhyaya (rutvik@prsindia.org)
Sports Ministry releases draft Bill on sports governance
The Ministry of Youth Affairs and Sports released the Draft National Sports Governance Bill, 2024.[16] The Bill creates a regulatory structure for the recognition and regulation of: (i) the National Olympic Committee (NOC), (ii) the National Paralympic Committee (NPC) and (iii) National Sports Federations (NSFs). Key features of the draft Bill include:
Regulator: The draft Bill provides for the creation of the Sports Regulatory Board of India. The Board will responsible for regulating the NOC, NPC, and NSFs of various sports. It will be empowered to grant, renew, or suspend recognition of these bodies. The Board will protect the rights and ensure the welfare of athletes and support personnel.
Suspension: Recognition of the NOC, NPC, and NSFs is conditional on their affiliation with: (i) the International Olympic or Paralympic Committee (for NOC and NPC) or, (ii) the concerned International Federation (for NSFs). Failure to maintain affiliation can lead to suspension. Other reasons for suspension include: (i) reported irregularities in internal functioning, (ii) failure to publish accounts, and (iii) irregularities in election procedures. If the reason for suspension is rectifiable, the Board can ensure compliance instead.
Governance: The draft Bill provides certain specifications in the governance structure of the NOC, NPC and each NSF. These bodies must each have a General Body and Executive Committee. The Executive Committee, which is a governing body, will be elected by the Athlete Commission. It will consist of office bearers such as President, Vice-Presidents, and Joint Secretaries. It will also comprise of athletes. After serving for more than two consecutive terms, office bearers would be ineligible to contest election for at least four years.
At least 10% of the General Body and voting members in each body will comprise of Sportspersons of Outstanding Merit (SOM). These are retired athletes who have won at least one medal at the Olympics, Commonwealth or Asian Games.
Tribunal: The draft Bill sets up an Appellate Sports Tribunal. The central government will notify the composition, manner of selection of members, and matters over which the Tribunal can exercise jurisdiction. Selection of the Tribunal will made on recommendations of a committee headed by a retired judge of the Supreme Court or High Court.
Health
Shirin Pajnoo (shirin@prsindia.org)
Health Ministry expands scope of nutrition support for Tuberculosis Patients
The Health Ministry recently announced the expansion of the Ni-kshay Poshan Yojana.[17] This scheme aims to provide nutritional and financial support to TB patients to reduce mortality due to TB.
Financial support for each TB patient will be increased from Rs 500 to Rs 1,000 per month. The scheme will also provide energy-dense nutritional supplements to underweight TB patients for the first two months of treatment. Family members of TB patients will also receive nutritional support which will be aimed at improving their immunity.
Cost of expanding the scheme is estimated at Rs 1,040 crore. This will be distributed between the centre and states in a 60:40 ratio.
Science and Technology
Anirudh TR (anirudh@prsindia.org)
Cabinet approves Rs 1,000 crore funding for space-based startups
The Union Cabinet approved setting up of Rs 1,000 crore venture capital fund to support space-based startups.[18] This fund is being set up by the Indian National Space Promotion and Authorisation Centre (INSPACe). INSPACe was created by the government in 2020 to promote and oversee private sector participation in space activities. The fund would be deployed over a five-year period starting from 2025 to 2030, with an annual deployment of Rs 150-200 crore. The indicative range of investment in startups is between Rs 10-60 crore. Growth stage companies can expect investment in the Rs 10-30 crore band. Late growth stage companies that have shown significant progress, can attract investments in the Rs 30-60 crore band. This fund is expected to benefit around 40 spaced based startup companies. Key objectives of this fund include: (i) infusion of capital to create a multiplier effect for further investment, (ii) retention of space companies domiciled in India, and (iii) accelerate private sector participation in Indian space sector.
Environment
Atri Prasad Rout (atri@prsindia.org)
Environment Ministry invites comments on draft liquid waste management rules
The Ministry of Environment, Forest and Climate Change invited comments on the draft Liquid Waste Management Rules, 2024.[19] The rules have been issued under the Environment (Protection) Act, 1986.[20] Liquid waste management includes environmentally sound management of: (i) wastewater, (ii) sludge generated during wastewater treatment and faecal sludge, and (iii) utilisation of treated wastewater. Key features of the draft Rules include:
Responsibilities of bulk users: Establishments with water consumption of more than 5,000 litres per day or pollution load of more than 10 kg per day in term of biochemical oxygen demand (BOD) will have to register on a centralised online portal. BOD is a measure of the level of pollutants in water. These users will be bound by extended user responsibility (EUR) obligation. They will: (i) operate onsite decentralised wastewater treatment facilities, and (ii) meet obligation for minimum reuse of treated wastewater. Users who are not able to setup an onsite facility can purchase EUR certificates from registered wastewater treatment facilities. The state pollution control board will authorise these EUR certificates.
Responsibilities of industries: Industries with water consumption of more than 5,000 litres per day or pollution load of more than 10 kg per day in term of BOD will have to register on the online portal. They will have to: (i) comply with effluent discharge standards set by the Central and State Pollution Control Boards, and (ii) maintain facilities to treat industrial effluent. Industries such as thermal power plants, steel and textiles will have to meet obligation for minimum reuse of treated wastewater.
Management of faecal waste: Users of onsite sanitation facilities such as septic tanks will be responsible for desludging these facilities. Both desludging service providers and operators of faecal sludge treatment facilities will have to: (i) register on the online portal, and (ii) report data on a monthly and annual basis. Local bodies will develop action plans for environmentally sound management of faecal sludge.
Comments are invited till December 6, 2024.
Energy
Nripendra Singh (nripendra@prsindia.org)
National Electricity Plan (Transmission) notified for 2022-32
The Central Electricity Authority (CEA) notified the National Electricity Plan (NEP) (Volume-II Transmission) for 2022-32.[21] In May 2023, CEA had notified NEP (Volume-I Generation).[22] CEA is required to formulate a National Electricity Plan once in five years under the Electricity Act, 2003.[23] Key features of the Plan are:
Current Capacity and Target: As of March 31, 2022, India had total installed transmission lines of 4,56,716 circuit kilometre (ckm). The NEP plans to add 1,91,474 ckm of transmission lines during 2022-32 (at voltage levels of 220 kV and above).
Target for 2017-22 not met: During 2017-22, 1,04,400 ckm of transmission lines were targeted to be added. Against this target, only 88,865 ckm (85%) of transmission lines were added. The Plan noted that target capacity addition for 2017-2022 could not be achieved due reasons such as COVID-19 pandemic and delay in getting forest clearance.
Renewable Target: The Plan noted that the installed electricity generation capacity from renewable energy sources was 193.5 GW as on May 31, 2024. It observed that the gestation period for certain renewable energy-based generation projects is lesser than that for its associated transmission system. This required the transmission system to be planned well in advance. The NEP provides a plan for installing transmission system associated with renewable energy capacity of 613 GW by 2032.
Guidelines for innovative projects under PM- Surya Ghar Yojana notified
The Ministry of New and Renewable Energy notified the guidelines for the implementation of innovative projects under PM-Surya Ghar Yojana.[24] The scheme aims to increase the share of solar rooftop capacity and empower residential households to generate their own electricity. Rs 500 crore has been allocated for innovative projects under the scheme to encourage advancements in rooftop solar technologies and fund innovations in business models.[25]
The scheme is open to entities and individuals including international co-operation for joint research. Projects under the scheme can have a maximum duration of 18 months. The selected projects will receive financial assistance of up to 60% of their total cost or Rs 30 crore, whichever is lower. Proposed projects will be screened by a committee on the basis of: (i) relevance and cost-effectiveness, (ii) project concept and novelty, and (iii) value to society. The proposals forwarded by the screening committee will be selected by a selection committee headed by the secretary of the Ministry.
Annexure
Parliament has constituted some of its Departmentally Related Standing Committees. The subjects identified for examination for 2024-25 by the Committees are given below.
Table 2: Subjects identified for examination by Departmentally Related Standing Committees
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[1] Consumer Price Index Numbers on Base 2012=100 for Rural, Urban and Combined for the Month of September 2024, National Statistics Office, Ministry of Statistics and Programme Implementation, October 14, 2024, https://www.mospi.gov.in/sites/default/files/press_release/CPI_PR_14oct24.pdf.
[2] “Index Numbers of Wholesale Price in India for the Month of September, 2024 (Base Year: 2011-12)”, Press Information Bureau, Ministry of Commerce and Industry, October 14, 2024, https://pib.gov.in/PressReleasePage.aspx?PRID=2064586.
[3] Resolution of the Monetary Policy Committee (MPC) October 7 to 9, 2024, Monetary Policy Statement, 2024-25, Reserve Bank of India, October 9, 2024, https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR1252500AD1D6DF27491B900F3C41B7FAE460.PDF.
[4] F. NO-CSR/13/35/2024, Ministry of Corporate Affairs, October 3, 2024, https://pminternship.mca.gov.in/assets/docs/PMIS_Guidelines.pdf.
[5] Writ Petition (Civil) No. 274 of 2009, Supreme Court of India, October 17, 2024, https://api.sci.gov.in/supremecourt/2009/16113/16113_2009_1_1501_56604_Judgement_17-Oct-2024.pdf.
[6] Citizenship Act, 1955, https://www.indiacode.nic.in/bitstream/123456789/1522/1/a1955-57.pdf.
[7] Article 14, Part 3, Constitution of India, https://www.indiacode.nic.in/bitstream/123456789/15240/1/constitution_of_india.pdf.
[8] Civil Appeal No. 152 of 2007, State of U.P. vs M/S. Lalta Prasad Vaish and Sons, Supreme Court of India, October 23, 2024, https://api.sci.gov.in/supremecourt/2005/12996/12996_2005_1_1501_56796_Judgement_23-Oct-2024.pdf.
[9] Entry No. 8, List II, Seventh Schedule, The Constitution of India.
[10] “Cabinet approves the PM Rashtriya Krishi Vikas Yojana (PM-RKVY) to promote sustainable agriculture and Krishonnati Yojana (KY) to achieve food security for self sufficiency”, Press Information Bureau, Cabinet, October 3, 2024, https://pib.gov.in/PressReleasePage.aspx?PRID=2061649.
[11] “Cabinet Approves National Mission on Edible Oils – Oilseeds (NMEO-Oilseeds) for 2024-25 to 2030-31”, Press Information Bureau, Cabinet, October 3, 2024, https://pib.gov.in/PressReleasePage.aspx?PRID=2061646.
[12] Third Advance Estimates of production of Foodgrains, Oilseeds and Other Commercial Crops for the year 2023-24 – released on June 4, 2024, https://dfpd.gov.in/Home/ContentManagement?Url=edible_oil_scenario.html&ManuId=3&language=1.
[13] “Cabinet approves Minimum Support Prices (MSP) for Rabi Crops for Marketing Season 2025-26”, Press Information Bureau, Cabinet Committee on Economic Affairs, October 16, 2024, https://pib.gov.in/PressReleasePage.aspx?PRID=2065309.
[14] National Food Security Act, 2013, https://www.indiacode.nic.in/bitstream/123456789/2113/1/201320.pdf.
[15] “Cabinet approves continuation of supply of free Fortified Rice under Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and other welfare schemes from July, 2024 to December, 2028”, Press Information Bureau, Cabinet, October 9, 2024, https://pib.gov.in/PressReleasePage.aspx?PRID=2063446.
[16] Draft National Sports Governance Bill, 2024, https://yas.nic.in/sites/default/files/Draft%20National%20Sports%20Governance%20Bill%20-2024.pdf.
[17] “Union Health Minister Unveils Key Initiatives to boost Nutrition Support for TB Patients and their Families”, Ministry of Health and Family Welfare, Press Information Bureau, October 7, 2024, https://pib.gov.in/PressReleasePage.aspx?PRID=2062928.
[18] Union Cabinet approves establishment of Rs.1,000 crore Venture Capital Fund for Space Sector under aegis of IN-SPACe, Department of Space, Press Information Bureau, October 24, 2024, https://pib.gov.in/PressReleasePage.aspx?PRID=2067667
[19] Liquid Waste Management Rules, 2024, Ministry of Environment, Forest, and Climate Change, October 7, 2024, https://egazette.gov.in/WriteReadData/2024/257748.pdf.
[20] Environment (Protection) Act, 1986, https://www.indiacode.nic.in/bitstream/123456789/4316/1/ep_act_1986.pdf.
[21] National Electricity Plan (Volume 2) Transmission, Central Electricity Authority, https://cea.nic.in/wp-content/uploads/notification/2024/10/National_Electricity_Plan_Volume_II_Transmission.pdf.
[22] National Electricity Plan (Volume 1) Generation, Central Electricity Authority, May 31, 2023, https://cea.nic.in/wpcontent/uploads/irp/2023/05/NEP_2022_32_FINAL_GAZETTE1.pdf.
[23] The Electricity Act, 2003, https://www.indiacode.nic.in/handle/123456789/2058?sam_handle=123456789/1362.
[24] “MNRE notifies Scheme Guidelines for ₹500 crore ‘Innovative Projects’ component under PM-Surya Ghar Yojana”, Press Information Bureau, Ministry of New and Renewable Energy, October 11, 2024, https://pib.gov.in/PressReleseDetail.aspx?PRID=2064203®=3&lang=1.
[25] “No.: 318/17/2024- Grid Connected Rooftop(part 14) Mission Directorate, PM-Surya Ghar: Muft Bijli Yojana”, Press Information Bureau, Ministry of New and Renewable Energy, October 8, 2024, https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/oct/doc20241011414801.pdf.
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