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As of April 27, 2020, there are 27,892 confirmed cases of COVID-19 in India.  Since April 20, 10,627 new cases have been registered.  Out of the confirmed cases so far, 6,185 patients have been cured/discharged and 872 have died.  As the spread of COVID-19 has increased across India, the central government has continued to announce several policy decisions to contain the spread, and support citizens and businesses who are being affected by the pandemic.  In this blog post, we summarise some of the key measures taken by the central government in this regard between April 20 and April 27, 2020.

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Source: Ministry of Health and Family Welfare; PRS.

Lockdown

Relaxation of lockdown for shops in specific areas

On April 25, the Ministry of Home Affairs passed an order allowing the opening of: (i) all shops in rural areas, except those in shopping malls, and (ii) all standalone shops, neighbourhood shops, and shops in residential complexes in urban areas.  Shops in markets, market complexes, or shopping malls in urban areas are not allowed to function.  Only shops registered under the Shops and Establishments Act of the respective state or union territory will be allowed to open.  Further, no shops can open in rural or urban areas that have been declared as containment zones.  The order also specifies that the sale of liquor continues to be prohibited. 

Functioning of Central Administrative Tribunals to remain suspended

The functioning of Central Administrative Tribunals will remain suspended until May 3, 2020.  Once functioning begins, certain days already declared as holidays may be reassigned as working days.  This decision was made keeping in mind that most of the Central Administrative Tribunals are located in COVID-19 hotspots. 

Financial measures

RBI announces Rs 50,000 crore special liquidity facility for Mutual Funds

The Reserve Bank of India (RBI) has decided to open a special liquidity facility for mutual funds (SLF-MF) worth Rs 50,000 crore.  This will ease liquidity pressures on mutual funds.  Under the SLF-MF, RBI will conduct repo operations of 90 days tenor at the fixed repo rate.  The SLF-MF will be available for immediate use, and banks can submit their bids to avail funding.  The scheme is available from April 27 to May 11, 2020, or until the allocated amount is utilised, whichever is earlier.  RBI will review the timeline and amount of the scheme, depending upon market conditions.  Funds availed under the SLF-MF can be used by banks exclusively for meeting the liquidity requirements of mutual funds.  This can be done through: (i) extending loans, and (ii) undertaking outright purchase of and/or repos against collateral of investment grade corporate bonds, commercial papers, debentures, and certificates of deposits held by mutual funds.

RBI extends benefits of Interest Subvention and Prompt Repayment Incentive schemes for short term crop loans

The Reserve Bank of India has advised banks to extend the benefits of Interest Subvention of 2% and Prompt Repayment Incentive of 3% for short term crop loans up to three lakh rupees.  Farmers whose accounts have become due or will become due between March 1, 2020 and May 1, 2020 will be eligible. 

Protection of healthcare workers

The Epidemic Diseases (Amendment) Ordinance, 2020 was promulgated 

The Epidemic Diseases (Amendment) Ordinance, 2020 was promulgated on April 22, 2020.  The Ordinance amends the Epidemic Diseases Act, 1897.  The Act provides for the prevention of the spread of dangerous epidemic diseases.  The Ordinance amends the Act to include protections for healthcare personnel combatting epidemic diseases and expands the powers of the central government to prevent the spread of such diseases.  Key features of the Ordinance include:

  • Definitions:  The Ordinance defines healthcare service personnel as a person who is at risk of contracting the epidemic disease while carrying out duties related to the epidemic.  They include: (i) public and clinical healthcare providers such as doctors and nurses, (ii) any person empowered under the Act to take measures to prevent the outbreak of the disease, and (iii) other persons designated as such by the state government.  

  • An ‘act of violence’ includes any of the following acts committed against a healthcare service personnel: (i) harassment impacting living or working conditions, (ii) harm, injury, hurt, or danger to life, (iii) obstruction in discharge of his duties, and (iv) loss or damage to the property or documents of the healthcare service personnel.  Property is defined to include a: (i) clinical establishment, (ii) quarantine facility, (iii) mobile medical unit, and (iv) other property in which a healthcare service personnel has direct interest, in relation to the epidemic. 

  • Protection for healthcare personnel and damage to property:  The Ordinance specifies that no person can: (i) commit or abet the commission of an act of violence against a healthcare service personnel, or (ii) abet or cause damage or loss to any property during an epidemic.  Contravention of this provision is punishable with imprisonment between three months and five years, and a fine between Rs 50,000 and two lakh rupees.  This offence may be compounded by the victim with the permission of the Court.  If an act of violence against a healthcare service personnel causes grievous harm, the person committing the offence will be punishable with imprisonment between six months and seven years, and a fine between one lakh rupees and five lakh rupees.  These offences are cognizable and non-bailable.

For more details on the Ordinance, please see here

Financial aid

Progress under the Pradhan Mantri Garib Kalyan Package 

According to the Ministry of Finance, between March 26 and April 22, 2020, approximately 33 crore poor people have been given financial assistance worth Rs 31,235 crore through bank transfers to assist them during the lockdown.  Beneficiaries of the bank transfers include widows, women account holders under Pradhan Mantri Jan Dhan Yojana, senior citizens, and farmers.  In addition to direct bank transfers, other forms of assistance have also been initiated. These include

  • 40 lakh metric tonnes of food grains have been provided to 36 states and union territories. 

  • 2.7 crore free gas cylinders have been delivered to beneficiaries.

  • Rs 3,497 crore has been disbursed to 2.2 crore building and construction workers from the Building and Construction Workers’ Funds managed by state governments. 

For more information on the spread of COVID-19 and the central and state government response to the pandemic, please see here.

Elections to the 13th Legislative Assembly of Gujarat are scheduled to be held in two phases on the 13th and 17th of December.  The BJP has been the dominant majority party in the Assembly since 1995.  The 2002 elections saw the largest victory for the party, winning 127 seats. The Congress last held power in Gujarat in 1985.  In the Assembly elections held for the the seventh Assembly, the Congress had a clear majority of 149 seats.  In 1990, the Janata Dal emerged as the largest party with 70 seats.  The BJP registered major gains in 1990, improving their tally of 11 seats in 1985 to 67 seats.  The Congress came third with 33 seats. The electoral trends over the last 22 years may be viewed here. In the current Assembly, 117 of the 182 seats are held by the BJP.  It is useful to look at the work done by the 12th Gujarat Assembly during its term from 2008 to 2012.  Here we look at key metrics like the number of days the assembly was in session, members’ attendance, and legislative business. Performance of the Assembly During its five year term, the assembly sat for a total of 157 days – an average of 31 days each year.  In comparison, the Lok Sabha sat for an average of 66 days each year during the period 2008 to 2011.  In the same period the Kerala Assembly sat for an average of 50 days – highest among states - followed by Maharashtra (44).  However, the Gujarat Assembly sat for more number of days than the Haryana Assembly which sat for an average of 13 days and Rajasthan (24). The average attendance among Gujarat MLAs stood at 83% for the whole term, with two members registering 100% attendance. 87 Bills were passed by the Assembly since the beginning of its term in 2008 till September 2011.  Of these, 80 Bills i.e. over 90% of all Bills were passed on the same day as they were introduced.  None of the Bills were referred to any Committee.  In the Budget Session of 2011, 31 Bills were passed of which 21 were introduced and passed within three sitting days Amendments sought by the President and the Governor One of the significant laws passed by the 12th Assembly was the Gujarat Control of Terrorism and Organised Crime Bill, 2003 which was introduced and passed in July 2009.  However the Bill did not receive the Presidents Assent and was sent back to the Gujarat Assembly for amendments. In December 2009, the assembly passed the Gujarat Local Authorities Laws (Amendment) Bill 2009 which sought to make voting compulsory in elections to local self-government bodies like municipal corporations and Panchayats.  The Gujarat governor returned the Bill for reconsideration in 2010.  It was re-introduced in the house in September 2010 without changes. Another Bill that was returned by the Governor was the Gujarat Regularisation of Unauthorised Development Bill which sought to regularise unauthorised construction on payment of an Impact Fee.  The Bill was passed by the Assembly in March 2011.  The Governor returned the Bill with a suggestion to include a provision to bar the regularisation of unauthorised construction beyond a specified date.  The Bill was re-introduced and passed with amendments by the Assembly in September 2011.