President’s address 2013 and the status of past promises

February 28th, 2013 1 comment

The Budget session 2013 commenced with the President, Pranab Mukherjee, addressing Parliament on February 21, 2013.  The address is a statement of the policy of the government.  Yesterday a Motion of Thanks was moved in the Lok Sabha and a detailed discussion took place on the President’s address.  (The significance of the President’s speech has been discussed in an article published in the Indian Express.)

Below are some legislative and policy items from the agenda of the central government outlined in the speech.

  • Amend the Prevention of Corruption Act to punish the guilty and protect the honest public servants more effectively.
  • The Direct Benefits Transfer system has been launched to enable government sponsored benefits such as scholarships, pensions and maternity benefits to be deposited in the beneficiaries Aadhaar linked accounts. This will be expanded to cover wages and subsidies on food and LPG. This system will not substitute public services and will be complementary to the Public Distribution System.
  • In a bid to promote Micro, Small & Medium Enterprises, 20% of all government procurement is required to be from Micro and Small Enterprises.
  • The coverage under the Mid-day Meal Programme to be expanded to pre-primary schools.
  • Godown storage capacity of 181 lakh tons will be created between 2013 and 2015 across the country with additional storage space of 5.4 lakh tons in the North East.
  • A Rural Water Supply and Sanitation Project for Low Income States, estimated at nearly Rs 5000 crore, is being developed to assist States that are lagging behind in the coverage of piped water supply.
  • Two and a half lakh gram panchayats will be connected with broadband facility under the National Optical Fibre Network project by December 2014.
  • A shift in central funding to states for higher education through a new programme called the Rashtriya Uchchatar Shiksha Abhiyan is being considered.
  • The government proposes to establish two new major ports at Sagar Island, West Bengal and the other in Andhra Pradesh, with a total additional capacity of around 100 Million Tonnes Per Annum (MTPA).  ‘In-principle’ approval has been given for setting up an airport at Aranmula (Kerala) apart from airports at Navi Mumbai, Mopa (Goa) and Kannur (Kerela).
  • In 2012-13, 2600 km of roads are expected to be constructed and contracts for 3000 km of new roads are expected to be awarded. A new approach to road construction, the EPC mode, has been put in place. A length of 2900 km of highways will be put under the Operate, Maintain and Transfer system, which will improve road maintenance.

Legislative and policyagenda outlined in President’s addresses between 2009-2012 and their  status

Legislation/Policy

Status

Legislations mentioned in the President’s Address between 2009-12

To be introduced
Goods and Services Tax Constitutional Amendment Bill introduced
The National Food Security Bill Introduced
Amend the Land Acquisition Act and enact the Rehabilitation and Resettlement Bill Introduced
Sexual Harassment of Women at Workplace (Prevention Prohibition and Redressal) Bill Passed
The Whistleblower Bill Pending
The Judicial Standards and Accountability Bill Pending
The Lokpal and Lokayuktas Bill Pending
A model Public Services Law (to cover officials providing important social services and commits them to their duties) Two bills introduced: the Electronic Services Delivery Bill and the Citizen’s Charter Bill
The Right to Free and Compulsory Education Bill Passed
The National Council for Higher Education Bill Introduced
Foreign Educational Institutions Bill Introduced
Protection of Children from Sexual Offences Bill Passed
The Women’s Reservation Bill Pending
The Mines and Minerals (Development and Regulation) Bill Introduced
The Public Procurement Bill Introduced
The General Anti-Avoidance Rules Scheduled for 2016[1]
Amend of RTI Act (to provide for disclosure by government in all non-strategic areas) To be introduced

Policy items mentioned in the President’s Addresses between 2009-2012

National Mission for Female Literacy – all women to be literate by 2013-14 National Literacy Mission recast in September 2009 to focus on female literacy; as per 2011 census the female literacy rate in India is 65.46%[2]
Disposal of remaining claims in 2010 under the Scheduled Tribes and Other Traditional Forest Dwellers Act As on February 28, 2010, 27.16 lakh claims had been filed, 7.59 lakh titles had been distributed and 36,000 titles were ready for distribution;[3] as on July 31, 2012, the number of claims filed for the recognition of forest rights and titles distributed are 32.28 lakh and 12.68 lakh respectively[4]
Introduction of Minimum Support Price (MSP) for Minor Forest Produce (MFP) being considered Based on the recommendations of the Committee constituted by Ministry of Panchayati Raj to look into aspects of MSP, Value addition and marketing of MFP in Fifth Schedule Areas, a Central Sector Scheme of MSP for MFP has been contemplated[5]
Voting rights for Indian citizens living abroad Bill passed; NRIs can vote at the place of residence mentioned in their passport
12th Plan target growth 9% with 4% growth for the agricultural sector GDP grew by 5.4% and the agriculture sector by 1.8% in the first half of the current fiscal year (2012-13)
Establish national investment and manufacturing zones to promote growth in manufacturing Under the National Manufacturing Policy, 12 National Investment and Manufacturing Zones are notified, 8 of them along the Delhi Mumbai Industrial Corridor and 4 others at Nagpur, Tumkur, Chittor and Medak
Strengthening public accountability of flagship programmes by the creation of an Independent Evaluation Office. Government has approved setting up of an Independent Evaluation Office and the Governing Board will be chaired by Deputy Chairman, Planning Commission
Unique Identity Card scheme to be implemented by 2011-12 Bill to give statutory status pending in Parliament; enrollment until February 2013 is approximately 28 crore[6]
Establishment of National Counter-Terrorism Centre Proposed launch of NCTC in March 2011 on hold as consultation with states is on; meeting held by the union government with the Chief Ministers of all the States in May 2012
Conversion of analog cable TV system to digital by December 2014 Government has implemented the first phase of digitization in Kolkata, Delhi, Chennai and Mumbai; by March 31, 2013, 38 cities with a population of more than one million will be covered
A roadmap for judicial reform to be outlined by the end of 2009 and implemented in a time-bound manner Vision statement formulated in 2009 outlining road map for improving justice delivery and legal reforms and steps to reduce pendency in Courts; setting up of a National Mission for the Delivery of Justice and Legal Reforms to improve court administration and reduce pendency was approved in June 2011

*Introduced means introduced in one House; Pending means passed by one House and pending in the other House; Passed means passed by both Houses of Parliament.


[1] “Major Recommendations of Expert Committee on GAAR Accepted”, Press Information Bureau, Ministry of Finance, January 14, 2013.

[2] Lok Sabha, Starred Question No. 175, December 5, 2012, Ministry of Human Resource Development.

[3] Lok Sabha, Unstarred Question No. 2672, March 12, 2010, Ministry of Tribal Affairs.

[4] Lok Sabha, Starred Question No. 108, August 17, 2012, Ministry of Tribal Affairs.

[5] “PM approves Constitution of National Council for Senior Citizens”, Press Information Bureau, February 1, 2012, Prime Minister’s Office.

RTE Act’s ban on screening of students not applicable to nursery admission: Delhi High Court

February 26th, 2013 No comments

Latest in the string of litigations filed after the enactment of the Right of Children to Free and Compulsory Education Act, 2009 (RTE Act), the Delhi High Court ruled that the Act shall not apply to nursery admissions in unaided private schools for the unreserved category of students.  The decision, given on February 19, was in response to writ petitions filed by Social Jurist, a civil rights group and the Delhi Commission for the Protection of Child Rights.  It contended that the guidelines of the Ministry of Human Resource Development related to schools’ selection procedure should also be applicable to pre-primary and pre-school classes.

The right to education is applicable to children between the age of 6 and 14 years.  The RTE Act states that schools have to reserve certain proportion of their seats for disadvantaged groups.  It adds that where the school admits children at pre-primary level, the reservation for children of weaker sections shall apply.  However, it does not mention whether other RTE norms are applicable to pre-schools.  It only states that the appropriate government may make necessary arrangements for providing pre-school education to children between the age of 3 and 6 years.

Guidelines of the Ministry with regard to selection procedure of students:

  • Criteria of admission for 25% seats reserved for disadvantaged groups: For Class 1 or pre-primary class, unaided schools shall follow a system of random selection out of the applications received from children belonging to disadvantaged groups.
  • Criteria of admission for rest of the seats: Each unaided school should formulate a policy of admission on a rational, reasonable and just basis.  No profiling shall be allowed based on parental educational qualifications.  Also, there can be no testing or interviews for any child or parent.

The two issues that the court considered were: (a) whether RTE applies to pre-schools including nursery schools and for education of children below six years of age; (b) whether RTE applies to the admission of children in pre-schools in respect of the unreserved seats (25% of seats are reserved for children belonging to disadvantaged groups).

According to the verdict, the guidelines issued by the government do not apply to the unreserved category of students i.e. 75% of the admission made in pre-schools in private unaided schools.  This implies that private unaided schools may formulate their own policies regarding admission in pre-schools for the unreserved category of students.  However, they apply to the reserved category of students i.e. 25% of the admission s made in these schools for disadvantaged groups.

The court has however stated that in its view this is the right time for the government to consider the applicability of RTE Act to the nursery classes too.  In most schools, students are admitted from nursery and they continue in the same school thereafter.  Therefore, the RTE Act’s prohibition of screening at the time of selection is rendered meaningless if it is not applicable at the nursery level.

The LAMP Fellowship: a unique insight into Indian policy-making

February 19th, 2013 1 comment

In 2010, the Legislative Assistants to Members of Parliament (LAMP) Fellowship was conceptualised by PRS Legislative Research, creating a unique platform for young Indians to engage with policy making at the national level. The Fellowship, a first of its kind in India, provides an opportunity for youth passionate about public policy to work with a Member of Parliament. Launched in collaboration with the Constitution Club of India, the Fellowship began with 12 Fellows and has now grown to include more than 40 young men and women from across India working with MPs from across political parties.

“Every once in a while you are presented with an opportunity to pursue something which is not conventional, but holds great promise. The LAMP fellowship was one such opportunity.” – Kushal Mehta, LAMP Fellow 2012-13


The Work                                                                                                          
The bulk of the Fellow’s work focuses on Parliament. On average, Parliament passes 60 Bills a year.  These Bills, covering a wide range of issues from food security to criminal laws, represent the government’s policy choices.  Informed debates on legislation are therefore critical.  Parliamentarians also use the floor of the House to discuss and debate urgent matters of public interest. The LAMP Fellowship provides young Indians with the opportunity to do legislative work through a 11-month professional engagement with an MP. Fellows are exposed to critical issues in public policy through which they will acquire knowledge about policy, parliament and governance structures, develop analytical abilities and hone leadership skills.
The Fellow typically supports an MP by providing research inputs for: policy and legislative debates, parliamentary Questions, standing committee meetings, and framing private members’ Bills.  Beyond Parliament, MPs have to focus on their constituency; LAMP fellows may work on issues at the constituency level.  Many Fellows in the current cohort have also had a chance to visit the parliamentary constituencies, often travelling with the MP to meet district officials and engage with constituents. Visits usually include a trip to the site of a centrally-sponsored scheme, engaging with public health officials, or attending panchayat meetings.  Some Fellows also assist their MPs with media-related work like drafting press releases and preparing research for public appearances.

Policy Exposure
The LAMP Fellowship is enriched by various workshops, seminars and discussions providing greater exposure to public policy. The current cohort have already engaged with experts like former Director General, CAG Amitabh Mukhopadhyay; social activists Reetika Khera and Harsh Mander; policy practitioners Nitin Pai of The Takshashila Institution, Laveesh Bhandari of Indicus Analytics and former Chairman of TRAI  Nripendra Misra; and leading JNU academic,  Niraja Gopal Jayal.

“At LAMP, there is no ‘typical’ day at work. Each day comes with new tasks, new challenges. My work for my MP has forced me out of my comfort zone to explore and understand an array of subjects.” – Kavya Iyengar, LAMP Fellow 2012-13

Fellows also get the opportunity to interact with organisations from various sectors like Google India, UNHCR and BCG.   For instance, this year’s Fellows participated in the iPolicy workshop for young leaders, organised by the Centre for Civil Society.  Last year, the Indian School of Business (ISB) Hyderabad hosted LAMP Fellows for a 3-day residential leadership development workshop, led by professors and guest speakers, including former RBI Governor, Dr. YV Reddy.
The LAMP Fellowship provides policy exposure but also guarantees a truly distinctive year: no two LAMP Fellows have the same experience. Every MP will have different research demands; LAMP Fellows have to be flexible, self-motivated and hungry to learn.  Work can be challenging but also hugely rewarding. Previous Fellows have used the Fellowship as a launch pad, pursuing further studies at top Universities like Yale, John Hopkins, and Oxford and embarking on careers in political consulting, public relations and think tanks. Some Fellows have even continued to support the work of parliamentarians, pursuing their area of interest like media, policy and constituency development projects.

India’s vibrant democracy is constantly confronted by complex, urgent and important challenges. The Fellowship provides a once in a lifetime opportunity to understand these challenges and, perhaps, even help overcome them.  Be a part of the solution, be a LAMP Fellow.
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Reviewing regulations in the sugar sector

February 6th, 2013 1 comment

There have been some recent developments in the sugar sector, which pertain to the pricing of sugarcane and deregulation of the sector.  On January 31, the Cabinet approved the fair and remunerative price (FRP) of sugarcane for the 2013-14 season at Rs 210 per quintal, a 23.5% increase from last year’s FRP of Rs 170 per quintal.  The FRP of sugarcane is the minimum price set by the centre and is payable by mills to sugarcane farmers throughout the country.  However, states can also set a State Advised Price (SAP) that mills would have to pay farmers instead of the FRP.

In addition, a recent news report mentioned that the food ministry has decided to seek Cabinet approval to lift controls on sugar, particularly relating to levy sugar and the regulated release of non-levy sugar.

The Rangarajan Committee report, published in October 2012, highlighted challenges in the pricing policy for sugarcane.  The Committee recommended deregulating the sugar sector with respect to pricing and levy sugar.

In this blog, we discuss the current regulations related to the sugar sector and key recommendations for deregulation suggested by the Rangarajan Committee.

Current regulations in the sugar sector

A major step to liberate the sugar sector from controls was taken in 1998 when the licensing requirement for new sugar mills was abolished.  Delicensing caused the sugar sector to grow at almost 7% annually during 1998-99 and 2011-12 compared to 3.3% annually during 1990-91 and 1997-98.

Although delicensing removed some regulations in the sector, others still persist.  For instance, every designated mill is obligated to purchase sugarcane from farmers within a specified cane reservation area, and conversely, farmers are bound to sell to the mill.  Also, the central government has prescribed a minimum radial distance of 15 km between any two sugar mills.

However, the Committee found that existing regulations were stunting the growth of the industry and recommended that the sector be deregulated.  It was of the opinion that deregulation would enable the industry to leverage the expanding opportunities created by the rising demand of sugar and sugarcane as a source of renewable energy.

Rangarajan Committee’s recommendations on deregulation of the sugar sector

Price of sugarcane: The central government fixes a minimum price, the FRP that is paid by mills to farmers.  States can also intervene in sugarcane pricing with an SAP to strengthen farmer’s interests.  States such as Uttar Pradesh and Tamil Nadu have set SAPs for the past few years, which have been higher than FRPs.

The Committee recommended that states should not declare an SAP because it imposes an additional cost on mills.  Farmers should be paid a uniform FRP.  It suggested determining cane prices according to scientifically sound and economically fair principles.  The Committee also felt that high SAPs, combined with other controls in the sector, would deter private investment in the sugar industry.

Levy sugar: Every sugar mill mandatorily surrenders 10% of its production to the central government at a price lower than the market price – this is known as levy sugar.  This enables the central government to get access to low cost sugar stocks for distribution through the Public Distribution System (PDS).  At present prices, the centre saves about Rs 3,000 crore on account of this policy, the burden of which is borne by the sugar sector.

The Committee recommended doing away with levy sugar.  States wanting to provide sugar under PDS would have to procure it directly from the market.

Regulated release of non-levy sugar: The central government allows the release of non-levy sugar into the market on a periodic basis.  Currently, release orders are given on a quarterly basis.  Thus, sugar produced over the four-to-six month sugar season is sold throughout the year by distributing the release of stock evenly across the year.  The regulated release of sugar imposes costs directly on mills (and hence indirectly on farmers).  Mills can neither take advantage of high prices to sell the maximum possible stock, nor dispose of their stock to raise cash for meeting various obligations.  This adversely impacts the ability of mills to pay sugarcane farmers in time.

The Committee recommended removing the regulations on release of non-levy sugar to address these problems.

Trade policy: The government has set controls on both export and import of sugar that fluctuate depending on the domestic availability, demand and price of sugarcane.  As a result, India’s trade in the world trade of sugar is small.  Even though India contributes 17% to global sugar production (second largest producer in the world), its share in exports is only 4%.  This has been at the cost of considerable instability for the sugar cane industry and its production.

The committee recommended removing existing restrictions on trade in sugar and converting them into tariffs.

For more details on the committee’s recommendations on deregulating the sugar sector, see here.

Lokpal Bill: Cabinet accepts key suggestions of the Select Committee

February 5th, 2013 No comments

In the run up to the Budget session of Parliament, the Cabinet has decided to accept some of the key recommendations of the Select Committee on the Lokpal and Lokayuktas Bill, 2011.  The Bill, passed by the Lok Sabha in December 2011, was referred to a Select Committee by the Rajya Sabha.  The Select Committee gave its recommendations on the Bill a year later in November 2012.  At the Cabinet meeting held on January 31, 2013, the government has accepted some of these recommendations (see here for PRS comparison of the Bill, Select Committee recommendations and the approved amendments).

Key approved amendments

Lokayuktas: One of the most contentious issues in the Lokpal debate has been the establishment of Lokayuktas at the state level.  The Bill that was passed by the Lok Sabha gave a detailed structure of the Lokayuktas.  However, the Committee was of the opinion that while each state has to set up a Lokayukta within a year of the Act coming into force, the nature and type of the Lokayuktas should be decided by the states.  The Cabinet has agreed with the suggestion of the Committee.

Inclusion of NGOs: Currently, “public servant” is defined in the Indian Penal Code to include government officials, judges, employees of universities, Members of Parliament, Ministers etc. The Bill expanded this definition by bringing societies and trusts which receive donations from the public (over a specified annual income) and, organizations which receive foreign donations (over Rs 10 lakh a year) within the purview of the Lokpal.  The Committee had however objected to the inclusion of organisations that receive donations from the public on the ground that bodies such as a rotary club or a resident’s welfare association may also be covered under the Lokpal. Bringing such entities within the Lokpal’s purview would make it unmanageable.  The Cabinet decided not to accept this recommendation stating that this view had been accepted by the Standing Committee while examining the version of the Bill introduced in the Lok Sabha.  However, the government has exempted trusts or societies for religious or charitable purposes registered under the Societies Registration Act.

Procedure of inquiry and investigation:  A key recommendation of the Committee was to allow the Lokpal to directly order an investigation if a prima facie case existed (based on the complaint received).  The Cabinet has accepted this suggestion but suggested that the Lokpal should, before deciding that a prima facie case exists, call the public servant for a hearing.  An investigation should be ordered only after hearing the public servant.  Also, the Cabinet has not accepted the recommendation of the Committee that a public servant should be allowed a hearing only at the end of the investigation before filing the charge-sheet and not at any of the previous stages of the inquiry.

 Power to grant sanction:  One of the key reasons cited for delays in prosecuting corrupt public officials is the requirement of a sanction from the government before a public servant can be prosecuted.  The Bill shifts the power to grant sanction from the government to the Lokpal.  It states that the investigation report shall be considered by a 3-member Lokpal bench before filing a charge-sheet or initiating disciplinary proceedings against the public servant.  The Committee recommended that at this point both the competent authority (to whom the public servant is responsible) and the concerned public servant should be given a hearing.  This has been accepted by the Cabinet.

Reforms of CBI:  There are divergent views over the role and independence of the CBI.  The Committee made several recommendations for strengthening the CBI.  They include:  (a) the appointment of the Director of CBI will be through a collegium comprising of the PM, Leader of the Opposition of the Lok Sabha and Chief Justice of India; (b) the power of superintendence over CBI in relation to Lok Pal referred cases shall vest in the Lokpal; (c) CBI officers investigating cases referred by the Lokpal will be transferred with the approval of the Lokpal; and (d) for cases referred by the Lokpal, the CBI may appoint a panel of advocates (other than government advocates) with the consent of the Lok pal.  All the recommendations regarding the CBI has been accepted by the Cabinet except one that requires the approval of the Lokpal to transfer officers of CBI investigating cases referred by the Lokpal.

Eligibility of Lokpal member:  According to the Bill, any person connected with a political party cannot be a member of the Lokpal.  The Committee’s recommendation was to change the term connected to affiliated to remove any ambiguity about the meaning.  This suggestion was accepted by the government.

Now the interesting question is what happens if the Rajya Sabha passes the Bill with these amendments.  The Bill will have to go back to the Lok Sabha for its approval since new amendments were added by the Rajya Sabha.  If the Lok Sabha passes these amendments, the office of the Lokpal may finally see the light of day.  (See here for PRS analysis of the Lokpal and Lokayukta Bill, 2011).

All you want to know about the President’s power of ordinance making

February 5th, 2013 1 comment

The President issued the Criminal Law (Amendment) Ordinance on February 3, 2013. This ordinance amends the Indian Penal Code, Criminal Procedure Code and the Indian Evidence Act. Here we explain what an ordinance is, how it is made and with what frequency it is used.

This article was first published on Rediff and can be accessed here.

What is an ordinance and who makes it?

Under the Constitution, the power to make laws rests with the legislature. However, in cases when Parliament is not in session, and ‘immediate action’ is needed, the President can issue an ordinance. An ordinance is a law, and could introduce legislative changes.

The Supreme Court has clarified that the legislative power to issue ordinances is ‘in the nature of an emergency power’ given to the executive only ‘to meet an emergent situation’. An example of immediacy can be seen in the ordinance passed in 2011 to give IIIT – Kancheepuram the status of an institute of national importance so that students could be awarded their degrees on completion of their course.

What will happen to the ordinance when Parliament meets for the Budget session?

After the ordinance is notified it is to be laid before Parliament within 6 weeks of its first sitting. The first sitting of Parliament in the Budget session this year will be February 21, 2013. Parliament could either choose to pass the ordinance, disapprove it or it may lapse within the 6 week time frame.  In addition, the President may chose to withdraw the ordinance.

Once the ordinance is laid in Parliament, the government introduces a Bill addressing the same issue. This Bill is supposed to highlight the reasons that necessitated the issue of the Ordinance. Thereafter, the Bill follows the regular law making process.

An amendment to Criminal Laws addressing similar issues is currently pending in Parliament. How will this play out vis-à-vis the ordinance?

The ordinance gives effect to some of the provisions of the Criminal Laws (Amendment) Bill, 2012, with some modifications.

In the upcoming Budget session the government may introduce a new Bill replacing both the Ordinance and the Amendment Bill currently pending in Parliament. The parliamentary Standing Committee is currently examining the Amendment Bill and is expected to submit its report by the end of March.

How often does the President use this power to make ordinances?

Data over the last 60 years indicates that 1993 saw the highest number of ordinances being passed, i.e. 34. In comparison, a fewer number of ordinances are now being issued. For example, in the last 10 years the average number of ordinances issued per year is 6.

Food security: some food for thought

January 23rd, 2013 1 comment

The right to food and food security have been widely discussed in the media.  The National Food Security Bill, 2011, which makes the right to food a legal right, is currently pending in Parliament.  The Bill seeks to deliver food security by providing specific entitlements to certain groups of individuals through the Targeted Public Distribution System, a large-scale subsidised foodgrain distribution system.  The Standing Committee on Food, Consumer Affairs and Public Distribution presented its report on the Food Security Bill on January 17, 2013.  It made recommendations on key issues such as the categorisation of beneficiaries, cash transfers and cost sharing between the centre and states.

A comparison of the Bill and Committee’s recommendations are given below.

Issue

Food Security Bill

Standing Committee’s Recommendations

Who will get food security?  75% of the rural and 50% of the urban population (to be divided into priority and general categories). Of these, at least 46% of the rural and 28% of urban populations will be priority (the rest will be general). Uniform category: Priority, general and other categories shall be collapsed into ‘included’ and ‘excluded’ categories.Included category shall extend to 75% of the rural and 50% of the urban population.
How will they be identified? The centre shall prescribe guidelines for identifying households; states shall identify the specific households. The centre should clearly define criteria for exclusion and consult with states to create inclusion criteria.
What will they get?  Priority:7 kg foodgrains/person/month (at Rs 3/kg for wheat, Rs 2/kg for rice, Rs 1/kg for coarse grains).General: 3 kg foodgrains/person/ month (at 50% of MSP). Included: 5 kg foodgrains/person/month (at subsidised prices).  Pulses, sugar, etc., should be provided in addition to foodgrains.
Reforms to TPDS Doorstep delivery of foodgrains to ration shops, use of information technology, etc. Implement specific IT reforms, for e.g. CCTV cameras in godowns, use of internet, and GPS tracking of vehicles carrying foodgrains.  Evaluate implementation of TPDS every 5 yrs.
Cost-sharing between centre and states Costs will be shared between centre and states. Mechanism for cost-sharing will be determined by the centre. Finance Commission and states should be consulted regarding additional expenditure to be borne by states to implement the Bill.
Cash Transfers Schemes such as cash transfer and food coupons shall be introduced in lieu of foodgrains. Cash transfers should not be introduced at this time. Adequate banking infrastructure needs to be set up before introduction.
Time limit for implementation The Act shall come into force on a date specified by the centre. States to be provided reasonable time limit i.e., 1 year, after which Act will come into force.

To access the Bill, a detailed comparison of the Standing Committee recommendations and the Bill, and other relevant reports relevant, see here.

An Overview of Fast Track Courts

December 31st, 2012 2 comments

Recently, Delhi witnessed large scale protests by various groups demanding stricter punishment and speedier trial in cases of sexual assault against women.  In light of the protests, the central government has constituted a Commission (headed by Justice Verma) to suggest possible amendments in the criminal law to ensure speedier disposal of cases relating to sexual assault.  Though the Supreme Court, in 1986, had recognised speedy trial to be a fundamental right, India continues to have a high number of pending cases.

In 2012, the net pendency in High Courts and subordinate courts decreased by over 6 lakh cases. However, there is still a substantial backlog of cases across various courts in the country.  As per the latest information given by the Ministry of Law and Justice, there are 43.2 lakh cases pending in the High Courts and 2.69 crore cases pending in the district courts.[1]

After the recent gang-rape of a 23 year old girl, the Delhi High Court directed the state government to establish five Fast Track Courts (FTCs) for the expeditious adjudication of cases relating to sexual assault.   According to a news report, other states such as Maharashtra and Tamil Nadu have also begun the process of establishing FTCs for rape cases.  In this blog, we look at the status of pending cases in various courts in the country, the number of vacancies of judges and the status of FTCs in the country.

Vacancies in the High Courts and the Subordinate Courts

One of the reasons for the long delay in the disposal of cases is the high number of vacancies in position for judges in the High Courts and the District Courts of the country.  As of December 1, 2012, the working strength of the High Court judges was 613 as against the sanctioned strength of 895 judges.  This reflects a 32% vacancy of judges across various High Courts in the country.  The highest number of vacancies is in the Allahabad High Court with a working strength of 86 judges against the sanctioned strength of 160 judges (i.e. vacancy of 74 judges).   The situation is not much better at the subordinate level.  As on September 30, 2011, the sanctioned strength of judges at the subordinate level was 18,123 judges as against a working strength of 14,287 judges (i.e. 21% vacancy).  The highest vacancy is in Gujarat with 794 vacancies of judges, followed by Bihar with 690 vacancies.

Fast Track Courts

The 11th Finance Commission had recommended a scheme for the establishment of 1734 FTCs for the expeditious disposal of cases pending in the lower courts.  In this regard, the Commission had allocated Rs 500 crore.   FTCs were to be established by the state governments in consultation with the respective High Courts.  An average of five FTCs were to be established in each district of the country.  The judges for these FTCs were appointed on an adhoc basis.  The judges were selected by the High Courts of the respective states.  There are primarily three sources of recruitment.  First, by promoting members from amongst the eligible judicial officers; second, by appointing retired High Court judges and third, from amongst members of the Bar of the respective state.

FTCs were initially established for a period of five years (2000-2005).  However, in 2005, the Supreme Court[2] directed the central government to continue with the FTC scheme, which was extended until 2010-2011.  The government discontinued the FTC scheme in March 2011.  Though the central government stopped giving financial assistance to the states for establishing FTCs, the state governments could establish FTCs from their own funds.  The decision of the central government not to finance the FTCs beyond 2011 was challenged in the Supreme Court.  In 2012, the Court upheld the decision of the central government.[3]  It held that the state governments have the liberty to decide whether they want to continue with the scheme or not.  However, if they decide to continue then the FTCs have to be made a permanent feature.

As of September 3, 2012, some states such as Arunachal Pradesh, Assam, Maharashtra, Tamil Nadu and Kerala decided to continue with the FTC scheme.  However, some states such as Haryana and Chhattisgarh decided to discontinue it. Other states such as Delhi and Karnataka have decided to continue the FTC scheme only till 2013.[4]

Table 1: Number of Fast Track Courts and the pending cases in FTCs                     (As on March 31, 2011)

State No of FTC No of cases transferred until March 31, 2011 Pending cases
Arunachal Pradesh 3 4,162 2,502
Bihar` 179 2,39,278 80,173
Assam 20 72,191 16,380
West Bengal 109 1,46,083 32,180
Goa 5 5,096 1,079
Punjab 15 58,570 12,223
Jharkhand 38 1,10,027 22,238
Gujarat 61 5,37.636 1,03,340
Chattisgarh 25 9,4670 18,095
Meghalaya 3 1,031 188
Rajasthan 83 1,49,447 26,423
Himachal Pradesh 9 40,126 6,699
Karnataka 87 2,18,402 34,335
Andhra Pradesh 108 2,36,928 36,975
Nagaland 2 845 129
Kerala 38 1,09,160 13,793
Mizoram 3 18,68 233
Haryana 6 38,359 4,769
Madhya Pradesh 84 3,60,602 43,239
UP 153 4,64,775 53,117
Maharashtra 51 4,23,518 41,899
Tamil Nadu 49 4,11,957 40,621
Uttarakhand 20 98,797 9006
Orissa 35 66,199 5,758
Manipur 2 3,059 198
Tripura 3 5,812 221
Total 1192 3898598 6,05,813

Sources:  Lok Sabha Unstarred Question No.498, March 3, 2012; PRS



[1].  Rajya Sabha Starred Question no 231 dated December 10, 2012.

[2].  Brij Mohan Lal v Union of India (2005) 3 SCR 103.

[3].  Brij Mohan Lal v Union of India (2012) 6 SCC 502.

[4].  Rajya Sabha Unstarred Question no 2388 dated September 3, 2012.

Can Aadhaar-enabled cash transfer schemes deliver?

December 20th, 2012 No comments

Recently, the government announced that it plans to transfer benefits under various schemes directly into the bank accounts of individual beneficiaries.  Benefits can be the Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) wages, scholarships, pensions and health benefits.  Beneficiaries shall be identified through the Aadhaar number (Aadhaar is an individual identification number linked to a person’s demographic and biometric information).  The direct cash transfer (DCT) system is going to be rolled out in 51 districts, starting January 1, 2013.  It will later be extended to 18 states by April 1, 2013 and the rest by April 1, 2014 (or earlier).  Presently, 34 schemes have been identified in 43 districts to implement the DCT programme.

Currently, the government subsidises certain products (food grains, fertilizers, water, electricity) and services (education, healthcare) by providing them at a lower than market price to the beneficiaries.  This has led to problems such as high fiscal deficit, waste of scarce resources and operational inefficiencies.  The government is considering replacing this with an Aadhaar enabled DCT system.  It has claimed that the new system would ensure timely payment directly to intended beneficiaries, reduce transaction costs and leakages.  However, many experts have criticised both the concept of cash transfer as well as Aadhaar (see here, here, here and here).

In this blog, we provide some background information about cash transfer, explain the concept of Aadhaar and examine the pros and cons of an Aadhaar enabled direct cash transfer system.

Background on cash transfer

Under the direct cash transfer (DCT) scheme, government subsidies will be given directly to the beneficiaries in the form of cash rather than goods.  DCTs can either be unconditional or conditional.  Under unconditional schemes, cash is directly transferred to eligible households with no conditions. For example, pension schemes.  Conditional cash transfers provide cash directly to poor households in response to the fulfillment of certain conditions such as minimum attendance of children in schools.  DCTs provide poor families the choice of using the cash as they wish.  Having access to cash also relieves some of their financial constraints.  Also, DCTs are simpler in design than other subsidy schemes.  Even though cash transfer schemes have a high fixed cost of administration when the programme is set up, running costs are far lower (see here, here and here).

Presently, the government operates a number of DCT schemes.  For example, Janani Suraksha Yojana, Indira Awas Yojana and Dhanalaksmi scheme.

In his 2011-12 Budget speech, the then Finance Minister, Pranab Mukherjee, had stated that the government plans to move towards direct transfer of cash subsidy for kerosene, Liquified Petroleum Gas (LPG), and fertilizers.  A task force headed by Nandan Nilekani was set up to work out the modalities of operationalising DCT for these items.  This task force submitted its report in February 2012.

The National Food Security Bill, 2011, pending in Parliament, includes cash transfer and food coupons as possible alternative mechanisms to the Public Distribution System.

Key features of Aadhaar

The office of Unique Identification Authority of India (UIDAI) was set up in 2009 within the Planning Commission.  In 2010, the government later introduced the National Identification Authority of India Bill in Parliament to give statutory status to this office.

  • The Aadhaar number is a unique identification number that every resident of India (regardless of citizenship) is entitled to get after he furnishes his demographic and biometric information.  Demographic information shall include the name, age, gender and address.  Biometric information shall include some biological attributes of the individual (such as fingerprints and iris scan).  Collection of information pertaining to race, religion, caste, language, income or health is specifically prohibited.
  • The Aadhaar number shall serve as proof of identity, subject to authentication.  However, it should not be construed as proof of citizenship or domicile.
  • Process of issuing and authenticating Aadhaar number: First, information for each person shall be collected and verified after which an Aadhaar number shall be allotted.  Second, the collected information shall be stored in a database called the Central Identities Data Repository.  Finally, this repository shall be used to provide authentication services to service providers.

For a PRS analysis of the Bill, see here.

Aadhaar enabled direct cash transfers

Advantages

Identification through Aadhaar number: Currently, the recipient has to establish his identity and eligibility many times by producing multiple documents for verification.  The verification of such documents is done by multiple authorities.  An Aadhaar enabled bank account can be used by the beneficiary to receive multiple welfare payments as opposed to the one scheme, one bank approach, followed by a number of state governments.

Elimination of middlemen: The scheme reduces chances of rent-seeking by middlemen who siphon off part of the subsidy.  In the new system, the cash shall be transferred directly to individual bank accounts and the beneficiaries shall be identified through Aadhaar.

Reduction in duplicate and ghost beneficiaries: The Aadhaar number is likely to help eliminate duplicate cards and cards for non-existent persons or ghost beneficiaries in schemes such as the PDS and MNREGS.    

Disadvantages

Lack of clarity on whether Aadhaar is mandatory:  According to UIDAI, it is not mandatory for individuals to get an Aadhaar number.  However, it does not prevent any service provider from prescribing Aadhaar as a mandatory requirement for availing services.  Therefore, beneficiaries may be denied a service if he does not have the Aadhaar number.  It is noteworthy that the new direct cash transfer policy requires beneficiaries to have an Aadhaar number and a bank account.  However, many beneficiaries do not yet have either.  (Presently, there are 229 million Aadhaar number holders and 147 million bank accounts).

Targeting and identification of beneficiaries:  According to the government, one of the key reasons for changing to DCT system is to ensure better targeting of subsidies.  However, the success of Aadhaar in weeding out ‘ghost’ beneficiaries depends on mandatory enrollment.  If enrollment is not mandatory, both authentication systems (identity card based and Aadhaar based) must coexist.  In such a scenario, ‘ghost’ beneficiaries and people with multiple cards will choose to opt out of the Aadhaar system.  Furthermore, key schemes such as PDS suffer from large inclusion and exclusion errors.  However, Aadhaar cannot address errors in targeting of BPL families.  Also, it cannot address problems of MNREGS such as incorrect measurement of work and payment delays.

Safeguard for maintaining privacy: Information collected when issuing Aadhaar may be misused if safeguards to maintain privacy are inadequate.  Though the Supreme Court has included privacy as part of the Right to Life, India does not have a specific law governing issues related to privacy.  Also, the authority is required to maintain details of every request for authentication and the response provided.  However, maximum duration for which such data has to be stored is not specified.  Authentication data provides insights into usage patterns of an Aadhaar number holder.  Data that has been recorded over a long duration of time may be misused for activities such as profiling an individual’s behaviour.

Brief overview of the performance of the 12th Gujarat Legislative Assembly

December 13th, 2012 No comments

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.