Highlights of this Issue
Winter Session 2019 of Parliament concludes; 14 Bills passed by Parliament
Bills passed by both houses include the Citizenship (Amendment) Bill, the Taxation Laws (Amendment) Bill, the Prohibition of Electronic Cigarettes Bill, and the Transgender Persons (Protection of Rights) Bill.
17 Bills introduced during the Winter Session
These include two codes on labour reforms: the Code on Social Security, 2019, and the Industrial Relations Code, 2019. The Personal Data Protection Bill, 2019 to regulate personal data of individuals was also introduced.
Citizenship (Amendment) Bill, 2019 introduced and passed by Parliament
The Citizenship (Amendment) Bill, 2019 was introduced and passed by Parliament this session. The Bill makes illegal migrants of certain religions from specific countries eligible for citizenship.
The Insolvency and Bankruptcy Code (Amendment) Ordinance promulgated
The Ordinance provides immunity to the corporate debtor against offences committed prior to the initiation of resolution process if the resolution plan results in transfer of control.
Seven Bills referred to Parliamentary Committees
The Personal Data Protection Bill, 2019 was sent to a Joint Parliamentary Committee. The Surrogacy (Regulation) Bill, 2019 was referred to a Rajya Sabha Select Committee. Five other Bills were referred to Standing Committees.
Cabinet approves conduct of Census and updation of National Population Register
The conduct of Census and the updation of the NPR will take place between 2020 and 2021. The NPR is a register of usual residents in an area (i.e., those who have resided or intend to reside in a local area for six months or more).
The Union Cabinet approves organisational restructuring of Indian Railways
The eight Group A services of Railways will be unified into a single service called Indian Railways Management Service. The Railway Board will be reorganised on the basis of functional lines of Railways.
Cabinet approved Partial Credit Guarantee Scheme for public sector banks
The scheme allows PSBs to purchase pooled assets from financially sound NBFCs and housing finance companies. The government will cover the initial losses up to a certain maximum amount.
Cabinet approves creation of the post of Chief of Defence Staff
The Chief of Defence Staff will be the permanent chairman of the Chiefs of Staff Committee. He will administer the three services and head the newly constituted Department of Military Affairs under the Ministry of Defence.
Standing Committees report on NIFTEM Bill, 2019 and Khelo India Scheme
Recommendations on NIFTEM Bill include limiting fees for technical courses in food science. The report on Khelo India Scheme suggested improving fund utilisation and talent identification, and reducing coaching vacancies.
CAG reports on the environmental impact of mining and the Ujjwala Yojana
The report on the environmental impact of mining by CIL noted the non-compliance of certain mines with environmental standards. The report on the Pradhan Mantri Ujjwala Yojana noted discrepancies in beneficiary data.
Changes notified to Inner Line Permit areas
The ILP regulates visits to certain areas of Arunachal Pradesh, Mizoram and Nagaland. These areas have been expanded to include the states of Arunachal Pradesh, Manipur, Mizoram, and notified areas of Nagaland.
Parliament
Prachi Kaur (prachi@prsindia.org)
Winter session 2019 of Parliament concludes
The Winter Session of Parliament ended on December 13, 2019. [1] During the session Parliament passed 14 Bills (excluding an appropriation Bill). These include the Citizenship (Amendment) Bill, 2019, the Taxation Laws (Amendment) Bill, 2019, the Prohibition of Electronic Cigarettes Bill, 2019, and the Transgender Persons (Protection of Rights) Bill, 2019. Parliament also passed a Bill amending the Constitution to extend the reservation for Scheduled Castes and Scheduled Tribes in Lok Sabha and State Assemblies by 10 years (till January 2030).
17 bills were introduced during the Session (excluding an appropriation Bill). These include the Personal Data Protection Bill, 2019, the Code on Social Security, 2019, the Industrial Relations Code, 2019, and the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019.
Seven Bills have been referred to Committees for detailed examination. The Personal Data Protection Bill, 2019 was referred to a Joint Parliamentary Committee, and the Surrogacy (Regulation) Bill, 2019 was referred to a Select Committee of Rajya Sabha. The following bills were referred to Standing Committees: (i) the Industrial Relations Code, 2019, (ii) the Code on Social Security, 2019, (iii) the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019, (iv) the Anti-Maritime Piracy Bill, 2019, and (v) the Maintenance and Welfare of Parents and Senior Citizens (Amendment) Bill, 2019.
The First Supplementary Demand for Grants for 2019-20 was passed by Parliament. Through the suplementary budget, the government sought the approval of Parliament for an additional expenditure of about about 19,000 crore. [2]
For more details on the legislative business taken up during the Winter Session 2019, see here. For details on the functioning of Parliament during the session, see here.
Home Affairs
Citizenship (Amendment) Bill, 2019 passed by Parliament
Roshni Sinha (roshni@prsindia.org)
The Citizenship (Amendment) Bill, 2019 was passed by Parliament. [3] The Citizenship Act, 1955 provides various ways in which citizenship may be acquired. It provides for citizenship by birth, descent, registration, naturalisation and by incorporation of territory into India. Key features of the Bill include:
For more details on the Bill and our analysis, see here.
Changes notified to the areas regulated by the Inner Line Permit
Roshni Sinha (roshni@prsindia.org)
Currently, certain areas in Arunachal Pradesh, Mizoram and Nagaland are notified as “Inner Line” areas under the Bengal Eastern Frontier Regulations, 1873. [4] In these areas, entry and exit of persons is regulated by an Inner Line Permit.
The Ministry of Home Affairs has issued a notification to replace these areas. The Inner Line will now include: (i) Arunachal Pradesh, (ii) Manipur, (iii) Mizoram, and, (iv) notified areas of Nagaland. [5] The Home Department of Nagaland has notified Dimapur under the Inner Line, in addition to the rest of the state. [6]
Arms (Amendment) Bill, 2019 passed by Parliament
Rohin Garg (rohin@prsindia.org)
The Arms (Amendment) Bill, 2019 was passed by Parliament. [7] The Bill amends the Arms Act, 1959. It decreases the number of licensed firearms allowed per person and increases penalties for certain offences under the Act. It also introduces new categories of offences. Key features include:
For a PRS report summary, see here.
Special Protection Group (Amendment) Bill, 2019 passed by Parliament
Anurag Vaishnav (anurag@prsindia.org)
The Special Protection Group (Amendment) Bill, 2019 was passed by Parliament. [8] The Bill amends the Special Protections Group Act, 1988. The Act provides for constitution and regulation of the Special Protection Group (SPG) for providing security to the Prime Minister, former Prime Ministers, and their immediate family members. Key features of the Bill include:
For a PRS summary of the Bill, see here.
The Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories) Bill, 2019 passed by Parliament
Prachi Kaur (prachi@prsindia.org)
The Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories) Bill, 2019 was passed by Parliament. [9] The Bill provides for the merger of the Union Territories (UTs) of Dadra and Nagar Haveli, and Daman and Diu into a single UT. The Bill makes consequential amendments including retaining the representation in Lok Sabha, the jurisdiction of the High Court of Bombay, and provisionally allotting all officials of the two UTs to the merged UT.
For a PRS Bill summary, see here.
Cabinet approves conduct of Census 2021 and updation of National Population Register
Roshni Sinha (roshni@prsindia.org)
The Union Cabinet approved proposals to: (i) conduct the Census of India 2021 throughout the country, and (ii) update the National Population Register (NPR) in all parts of the country, except the state of Assam. [10]
The Census will be conducted in two phases: (i) a house listing and housing census between April and September 2020, and (ii) population enumeration in February 2021. The NPR will be updated along with the house listing and housing census (except in Assam). The NPR is a register of the usual residents in the country. Usual residents refer to those who have either resided in a local area for the past six months or more, or intend to reside in that area for the next six months or more. [11], [12]
Nagaland declared as a disturbed area under AFSPA
Roshni Sinha (roshni@prsindia.org)
The Ministry of Home Affairs has declared the entire state of Nagaland to be a ‘disturbed area’ under the Armed Forces (Special Powers) Act, 1958 (AFSPA), for a period of six months from December 30, 2019. [13] The AFSPA empowers the governor of the state, or the central government, to declare any part of the state as a 'disturbed area'. In a disturbed area, armed forces officers have certain special powers. These include the power to open fire at any individual for violating laws which prohibit: (i) the assembly of five or more persons, or (ii) the carrying of weapons.
Macroeconomic Development
Gayatri Mann (gayatri@prsindia.org)
Policy repo rate remains unchanged at 5.15%; reverse repo rate at 4.9%
The Monetary Policy Committee (MPC) released its fifth bi-monthly Monetary Policy Statement of 2019-20. [14] The policy repo rate (the rate at which RBI lends money to banks) remained unchanged at 5.15%. Other decisions of the MPC include:
Current Account Deficit at 0.9% of GDP during the second quarter of 2019-20
India’s Current Account Deficit (CAD) in the second quarter (July-September) of 2019-20 decreased to USD 6.3 billion (0.9% of GDP) from USD 19 billion (2.9% of GDP) in the corresponding quarter of 2018-19. [15] The CAD in the previous quarter, i.e. the first quarter (April-June) of 2019-20 was USD 14.3 billion, which was 2% of GDP.
The year-on-year decrease in CAD was primarily due to a lower trade deficit (the difference between a country’s exports and imports) of USD 38.1 billion in the second quarter of 2019-20, as compared to USD 50 billion in the corresponding period of the previous year. Foreign exchange reserves increased by USD 5.1 billion in the second quarter of 2019-20, as compared with a depletion of USD 1.9 billion in the second quarter of 2018-19. Table 1 shows India’s balance of payments in the second quarter of 2019-20.
Table 1: Balance of Payments, Q2 2019-20 (USD billion)
Q2 2018-19 |
Q1 2019-20 |
Q2 2019-20 |
|
Current Account |
-19.0 |
-14.3 |
-6.3 |
Capital Account |
16.6 |
27.9 |
12.0 |
Errors and Omissions |
-0.6 |
-0.4 |
0.7 |
Change in reserves |
-1.9 |
14 |
5.1 |
Sources: Reserve Bank of India; PRS.
Finance
The Taxation Laws (Amendment) Bill, 2019 passed by Parliament
Suyash Tiwari (suyash@prsindia.org)
The Taxation Laws (Amendment) Bill, 2019 was passed by Parliament. [16] The Bill replaces the Ordinance promulgated in September 2019. It amends the Income Tax Act, 1961 (IT Act), and the Finance (No. 2) Act, 2019. The Bill provides domestic companies with lower tax rate options, if they do not claim certain deductions. It also amends certain provisions regarding levy of surcharge on capital gains. Key features include:
For more details on the Bill, please see here.
International Financial Services Centres Authority Bill, 2019 passed by Parliament
Anurag Vaishnav (anurag@prsindia.org)
The International Financial Services Centres Authority Bill, 2019 was passed by Parliament. [17] The Bill provides for the establishment of an authority to develop and regulate the financial services market in International Financial Services Centres in India. Key features of the Bill include:
For more details on the Bill, see here.
The Insolvency and Bankruptcy Code amended through an ordinance, Bill already introduced
Saket Surya (saket@prsindia.org)
The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019 was promulgated on December 28, 2019. [18] The Ordinance amends the Insolvency and Bankruptcy Code, 2016. The Code provides a time-bound process for resolving insolvency in companies and among individuals. Amendments proposed under the Ordinance include:
Note that similar amendments are proposed in the Insolvency and Bankruptcy Code (Second Amendment) Bill, 2019, which was introduced in Lok Sabha during the Winter Session 2019. The Bill has been referred to the Standing Committee on Finance.
For a PRS Summary on the Ordinance, see here.
Cabinet approves Partial Credit Guarantee Scheme to public sector banks
Anurag Vaishnav (anurag@prsindia.org)
The Union Cabinet has approved modifications to the Partial Credit Guarantee Scheme. [19] The scheme was announced in the Union Budget 2019-20 and issued on August 19, 2019. [20]
Under the scheme, a government guarantee is provided to public sector banks (PSBs) for buying high-rated pooled assets from financially sound non-banking financial companies (NBFCs) and housing finance companies (HFCs). The government will cover the initial losses up to 10% of the fair value of assets purchased by the banks, or Rs 10,000 crore, whichever is lower.
The modified scheme will also cover NBFCs and HFCs which may have come under the SMA-0 sub-category during the one-year period prior to August 1, 2018. The SMA-0 sub-category includes accounts classified as special mention accounts with principal or interest payments due for up to 30 days. The minimum rating of the underlying asset pool being purchased by PSBs should be BBB+ as per the modified scheme.
The government expects that the guarantee support will help NBFCs and HFCs resolve their liquidity or cash flow issues. The scheme will be operational till June 30, 2020, or till such date by which one lakh crore rupees worth of assets are bought by the PSBs, whichever is earlier.
RBI issues guidelines on constituting a Board of Management in Primary (Urban) Cooperative Banks
Roshni Sinha (roshni@prsindia.org)
The Reserve Bank of India (RBI) issued guidelines on constituting a Board of Management (BoM) for Primary (Urban) Cooperative Banks (UCBs). [21] As per the guidelines, all UCBs with deposits of Rs 100 crore or more will be required to constitute a BoM, and obtain approval of RBI for appointing the bank’s Chief Executive Officer. The constitution of a BoM will be a mandatory condition for these banks to open a new branch or to expand operations.
The BoM will have a minimum of five and a maximum of 12 members, with special knowledge or expertise in various fields, including accountancy, banking or law. The BoM will report to the Board of Directors of the bank. Its functions will include exercising oversight over the banking-related functions of UCBs, and assisting the Board of Directors in policy formulation.
Cabinet approves additional capital and equity support to IIFCL
Anurag Vaishnav (anurag@prsindia.org)
The Union Cabinet has approved additional capital infusion and equity support to India Infrastructure Finance Company Limited (IIFCL). [22] IIFCL is a non-banking financial company which provides long-term finance to viable infrastructure projects.
The additional equity support for the financial years 2019-20 and 2020-21 would be Rs 5,300 crore and Rs 10,000 crore respectively. This support will come either from budgetary support or the issuance of recapitalisation bonds. Further, the authorised capital of IIFCL is also proposed to be increased from Rs 6,000 crore to Rs 25,000 crore. Authorised capital is the maximum amount of shares that a company can issue as per its incorporation documents.
RBI releases guidelines for on tap licensing of small finance banks
Anurag Vaishnav (anurag@prsindia.org)
The Reserve Bank of India (RBI) has released guidelines for on tap licensing of small finance banks in the country. [23] On tap licensing refers to the practice of granting license throughout the year. Currently, there is no on tap licensing window for small finance banks. The current process for licensing is governed by the 2014 guidelines by RBI on licensing of small finance banks in private sector. [24]
Small finance banks provide credit access to small businesses and unorganised sector entities through technology and low cost operations. The guidelines provide for:
Other requirements: Small finance banks will be required to extend 75% of its net bank credit to sectors eligible for priority sector lending (such as agriculture, micro and small enterprises). Further, at least 50% of loans by these banks should be kept up to 25 lakh rupees, on an ongoing basis.
Committee constituted to review framework for economic indicators
Roshni Sinha (roshni@prsindia.org)
The Ministry of Statistics and Programme Implementation has constituted a Standing Committee on Economic Statistics (Chair: Mr. Pronab Sen) to review the framework of economic indicators related to the industrial sector, the services sector, and labour force statistics. [25], [26] The Committee will comprise 28 members, including representatives from the United Nations, Reserve Bank of India, Ministry of Finance, NITI Aayog, and economists and statisticians. Note that a copy of the order constituting the Committee is not available in the public domain.
Information and Broadcasting
Anurag Vaishnav (anurag@prsindia.org)
The Personal Data Protection Bill, 2019 introduced in Lok Sabha
The Personal Data Protection Bill, 2019 was introduced in Lok Sabha. [27] It seeks to provide for protection of personal data of individuals, and establishes a Data Protection Authority for the same. The Bill defines personal data as data which pertains to characteristics, traits, or attributes of identity, which can be used to identify an individual. Key features include:
The Bill has been referred to a Joint Parliamentary Committee, which is expected to submit its report by the first day of the last week of the Budget Session, 2020. For more details on the Bill, see here. To read PRS’s analysis of the draft bill, see here.
Labour and Employment
Roshni Sinha (roshni@prsindia.org)
Code on Social Security introduced in Lok Sabha
The Code on Social Security, 2019 was introduced in Lok Sabha. [28] It replaces nine laws related to social security, including the Employees’ Provident Fund Act, 1952, and the Unorganised Workers’ Social Security Act, 2008. Key features of the Code include:
For more details on the Code, see here.
Social Justice and Empowerment
The Constitution (One Hundred and Twenty-Sixth Amendment) Bill, 2019 passed by Parliament
Gayatri Mann (gayatri@prsindia.org)
The Constitution (One Hundred and Twenty-Sixth Amendment) Bill, 2019 was passed by Parliament. [29] The Bill amends provisions related to reservation of seats for Scheduled Castes (SCs) and Scheduled Tribes (STs).
The Constitution provides for reservation of seats for SCs and STs and representation of the Anglo-Indian community by nomination, in Lok Sabha and Legislative Assemblies of states. This has been provided for a period of 70 years since the enactment of the Constitution and will expire on January 25, 2020. The Bill seeks to extend the reservation for SCs and STs by another 10 years till January 25, 2030. The provision of seats by nomination for Anglo-Indians in Lok Sabha and State Assemblies has not been extended.
For a PRS Summary on the Bill, see here.
The Maintenance and Welfare of Parents and Senior citizens (Amendment) Bill, 2019 introduced in Lok Sabha
Anya Bharat Ram (anya@prsindia.org)
The Maintenance and Welfare of Parents and Senior Citizens (Amendment) Bill, 2019 was introduced in Lok Sabha. [30] The Bill amends the Maintenance and Welfare of Parents and Senior Citizens Act, 2007. [31] Key features include:
For more details on the Bill, see here.
Health and Family Welfare
Gayatri Mann (gayatri@prsindia.org)
The Prohibition of E-Cigarettes Bill, 2019 passed by Parliament
The Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Export, Transport, Sale, Distribution, Storage, and Advertisement) Bill, 2019 was passed by Parliament. [32] It replaced an Ordinance promulgated in September 2019. The Bill seeks to prohibits the production, trade, storage, and advertisement of electronic cigarettes.
For more information on the Bill, see here.
Transport
Recycling of Ships Bill, 2019 passed by Parliament
Prachee Mishra (prachee@prsindia.org)
The Recycling of Ships Bill, 2019 was passed by Parliament. [33] The Bill restricts the use of hazardous material on ships and regulates the recycling of ships. Key features include:
For a PRS summary of the Bill, see here.
Toll Operate Transfer model for monetising highways amended
Prachee Mishra (prachee@prsindia.org)
The Ministry of Road Transport and Highways approved certain changes in the Toll-Operate-Transfer (TOT) model for monetising National Highways. [34] In August 2016, the Union Cabinet had authorised the National Highway Authority of India (NHAI) to monetise certain public funded National Highway projects. [35] The revenue generated from this monetisation would be utilised by the central government for the future development, operation, and maintenance of highways. Changes approved include:
Draft amendments for mandating BS-VI level emission norms for quadricycles published
Saket Surya (saket@prsindia.org)
The Ministry of Road Transport and Highways published draft amendments in the Central Motor Vehicles Rules, 1989. [36] The draft amendments provide for mandating Bharat Stage VI (BS-VI) level emission norms for quadricycles, manufactured on or after April 1, 2020. A quadricycle is a four-wheeler, which is smaller and lighter than a passenger car. The Bharat Stage Emission Standards (BSES) are emission standards instituted by the central government to regulate the output of air pollutants from motor vehicles. BSES provides progressive standards with more stringent norms. Presently, applicable emission norms for the quadricycles is Bharat Stage IV. Comments are invited within 30 days from the date of publication of the draft amendments, i.e., December 13, 2019.
Railways
Saket Surya (saket@prsindia.org)
Cabinet approves organisational restructuring of Indian Railways
The Union Cabinet approved the organisation restructuring of Indian Railways.
Housing and Urban Affairs
Prachi Kaur (prachi@prsindia.org)
The NCT of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019 passed by Parliament
The National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019 was passed by Parliament. [38] The Bill provides for recognising the property rights of residents of certain unauthorised colonies in the National Capital Territory of Delhi. Key features include:
For a PRS Bill summary, see here.
Education
Rohin Garg (rohin@prsindia.org)
Central Sanskrit Universities Bill passed by Lok Sabha
The Central Sanskrit Universities Bill, 2019 was passed by the Lok Sabha. [39] The Bill seeks to convert three deemed-to-be Sanskrit universities into Central Sanskrit Universities. These universities are: (i) Rashtriya Sanskrit Sansthan, New Delhi, (ii) Shri Lal Bahadur Shastri Rashtriya Sanskrit Vidyapeeth, New Delhi, and (iii) Rashtriya Sanskrit Vidyapeeth, Tirupati.
For a PRS report summary, see here.
External Affairs
Anya Bharat Ram (anya@prsindia.org)
Anti-Maritime Piracy Bill, 2019 introduced in Lok Sabha
The Anti-Maritime Piracy Bill, 2019 was introduced in Lok Sabha. [40] The Bill provides for prevention of maritime piracy and prosecution of persons for such piracy related crimes. Key features of the Bill include:
For a PRS summary of the Bill, see here.
Cabinet approves the Social Security Agreement between India and Brazil
The Union Cabinet approved the Social Security Agreement between India and Brazil. [41] The agreement states that indian professionals and skilled workers working in Brazil for short durations only need to make social security payments in one of the countries. Further, it provides for unrestricted payment of pensions even in cases where the worker has residence in the other contracting state. [42]
Statistics
Prachi Kaur (prachi@prsindia.org)
Draft National Statistical Commission Bill, 2019 released
The Ministry of Statistics and Programme Implementation published the Draft National Statistical Commission Bill, 2019 for public comments. [43] The draft Bill seeks to constitute a National Statistical Commission (NSC) as the nodal regulatory body for all principal statistical activities of the country. Key features include:
Comments on the draft Bill are invited till January 19, 2020.
Defence
Anurag Vaishnav (anurag@prsindia.org)
Cabinet approves creation of the post of Chief of Defence Staff
The Union Cabinet has approved the creation of the post of Chief of Defence Staff (CDS). [44] The post will be in the rank of a four-star General. Further, a Department of Military Affairs will be constituted under the Ministry of Defence. This department will be headed by the CDS. General Bipin Rawat has been appointed as the Chief of Defence Staff (CDS) with effect from December 31, 2019. [45]
The creation of post of Chief of Defence Staff was first recommended by the report of the Group of Ministers on ‘Reforming the National Security System’ (2001) to provide single-point military advice to the government. [46] The government expects this reform will enable the armed forces to implement coordinated defence practices and procedures.
The CDS will be the permanent chairman of the Chiefs of Staff Committee. Currently, this position is held by the senior most Chief of Staff until they retire, and therefore is not permanent. The CDS will also:
The Department of Military Affairs will deal with: (i) matters related to defence procurement, training and staffing for the services, (ii) facilitating restructuring of military commands for optimal utilisation of resources, and (iii) promoting use of indigenous equipment.
Food Processing
Prachi Kaur (prachi@prsindia.org)
Standing Committee submits report on the NIFTEM Bill, 2019
The Standing Committee on Agriculture (Chair: Mr. P. C. Gaddigoudar) submitted its report on the National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019. [47] The Bill declares certain institutes of food technology, entrepreneurship, and management as institutions of national importance. These are the National Institute of Food Technology, Entrepreneurship and Management (NIFTEM), Kundli and the Indian Institute of Food Processing Technology (IIFPT), Thanjavur. Key observations and recommendations of the Committee include:
For a PRS report summary, please see here.
Draft National Food Processing Policy released for public feedback
The Ministry of Food Processing Industries released the Draft National Food Processing Policy, 2019 for public comments. [48] The draft policy aims for the development of the food processing sector and addressing the critical gaps hampering its growth. It also aims to increase the investment in the sector by six-fold by 2035. Key features of the draft policy include:
Comments on the draft policy had been invited by December 31, 2019.
Agriculture
Cabinet approves the continuation of horticulture scheme for J&K and Ladakh
Suyash Tiwari (suyash@prsindia.org)
The Union Cabinet approved the continuation of the Prime Minister’s Development Package for horticulture development in the union territories of Jammu and Kashmir (J&K), and Ladakh till 2021-22. [49] The scheme was approved in 2016 for the development of horticulture, including restoration of damaged horticulture areas, in the erstwhile state of J&K. The scheme provides certain benefits to J&K for import of planting material of special varieties of apple, and additional assistance for adopting techniques which increase productivity. Earlier, the scheme was approved for implementation till 2018-19. This has been extended by three years to 2021-22, with provision for further extension of up to one year with the approval of the Union Minister of Agriculture and Farmers’ Welfare.
An outlay of Rs 500 crore has been approved for the scheme, with Rs 40 crore earmarked for Ladakh and Rs 460 crore earmarked for J&K.
Draft National Fisheries Development Board Bill released
Rohin Garg (rohin@prsindia.org)
The Ministry of Fisheries, Animal Husbandry and Dairying released the draft National Fisheries Development Board (NFDB) Bill. [50] The NFDB was registered in 2006 in Hyderabad, Telangana under the Andhra Pradesh Societies Registration Act, 2001. It seeks to enhance fish production in the country and coordinate fishery development in a holistic manner. Key features of the Draft Bill include:
Comments on the Draft Bill are invited before January 5, 2020.
Environment and Forests
Prachi Kaur (prachi@prsindia.org)
CAG assesses the environmental impact due to mining activities and its mitigation in Coal India Limited
The Comptroller and Auditor General (CAG) of India submitted its report on the assessment of the environmental impact of mining activities and its mitigation in Coal India Limited and its subsidiaries on December 11, 2019. [51] Key observations and recommendations include:
For a PRS report summary, please see here.
India State of Forest Report, 2019 released
The Ministry of Environment, Forests and Climate Change released the India State of Forest Report, 2019. [52] The report gives a forest and tree cover map for the country. Key findings of the report include:
Table 2 shows forest cover of India in 2019.
Table 2: Forest cover of India (2019)
Class |
Area (sq km) |
% of area |
Very dense forest |
99,278 |
3.02% |
Moderately dense forest |
3,08,472 |
9.38% |
Open forest |
3,04,499 |
9.26% |
Total forest cover |
7,12,249 |
21.67% |
Tree cover |
95,027 |
2.89% |
Non-forest and scrub |
24,80,193 |
75.44% |
Total geographical area |
32,87,469 |
100.00% |
Note: Forest area covers Mangrove cover.
Sources: State of Forest Report, 2019; PRS.
Jal Shakti
Prachi Kaur (prachi@prsindia.org)
Cabinet approves Atal Bhujal Yojana
The Union Cabinet has approved the Atal Bhujal Yojana which aims to improve ground water management through community participation. [53] The scheme will be implemented in certain identified priority areas in seven states. These states are Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan, and Uttar Pradesh. It will be implemented over a period of five years (2020-21 to 2024-25).
The central government will provide Rs 6,000 crore of total grants towards the scheme. 50% of this will be through a World Bank loan, to be repaid by central government. The remaining 50% will be through central assistance from regular budgetary support.
The scheme has two major components:
Operational guidelines for Jal Jeevan Mission released
The Ministry of Jal Shakti released the operational guidelines for the Jal Jeevan Mission. [54] The Mission was approved by the Union Cabinet in August, 2019 to provide functional household tap connection to every rural household by 2024.2 Currently, out of 17.9 crore rural households in the country, about 14.6 crore (82%) households do not have household water tap connections.2 Key features of the guidelines include:
Power
Saket Surya (saket@prsindia.org)
Guidelines for the development of decentralised solar power plants released
The Ministry of New and Renewable Energy released guidelines for the development of decentralised solar power plants. [55] These guidelines will be applicable to the procurement of solar power by distribution companies (discoms) from decentralised solar power plants in rural areas. This is to promote the use of solar energy and ensure the availability of affordable and reliable solar power in rural areas. Key features of the guidelines are as follows:
Methodology for auction of short term coal linkages under the SHAKTI policy released
The Ministry of Power had constituted a High-Level Empowered Committee to resolve issues related to stressed thermal power assets in July 2018. [56] The Union Cabinet approved some of the Committee’s recommendations in March 2019. One of the recommendations of the Committee was to provide short-term coal linkage to power plants which do not have power purchase agreements (PPA). This short-term linkage will be provided under the SHAKTI policy. The SHAKTI policy seeks to provide for the allocation of coal among thermal power plants in a transparent and objective manner. The Ministry released the methodology for auctioning such short-term linkages. [57] Key features of the methodology are as follows:
Steel
Saket Surya (saket@prsindia.org)
Draft policy for promotion of greenfield investments in the steel sector published
The Ministry of Steel has published a draft policy for the promotion of new steel plants. [58] The Ministry has estimated that an additional capacity of 25-30 million tonnes per annum of steel production will be required to meet the domestic steel consumption demand by 2024-25. Such capacity expansion will require setting up new plants (greenfield steel plants) with investments worth Rs 1-1.5 lakh crore.
The draft policy attempts to address the key challenges in setting up new projects, such as: (i) availability of land, (ii) long term availability of iron ore at a competitive price, (iii) faster grant of statutory clearances, and (iv) incentives for a large investment. Key features of the draft policy are:
Operating Models: The draft policy provides the following models for providing land and iron ore mines to the new projects:
Role of the Ministry: Key responsibilities of the Ministry of Steel under the draft policy include:
Comments on the draft policy are invited until January 1, 2020. [59]
Petroleum and Natural Gas
Anurag Vaishnav (anurag@prsindia.org)
CAG submits performance audit of Pradhan Mantri Ujjwala Yojana
The Comptroller and Auditor General (CAG) of India submitted a performance audit report on the Pradhan Mantri Ujjwala Yojana (PMUY). [60] The PMUY scheme was launched in May 2016 with the objective of providing Liquefied Petroleum Gas (LPG) connections to women from below poverty line (BPL) households. The report audited the implementation of the scheme between May 2016 and December 2018. Key findings of the report include:
For a PRS summary of the report, see here.
Communications
Saket Surya (saket@prsindia.org)
TRAI extends the date for abolition of termination charges on domestic calls
Termination charges are the wholesale charges payable by the service provider of an originating subscriber to the service provider in whose network the call terminates. As per the existing regulation, termination charges for wireless to wireless domestic call is Rs 0.06 per minute. [61] These charges were to be abolished from January 1, 2020.1 TRAI has extended the deadline for abolition by one year, i.e., to January 1, 2021. [62]
TRAI invites consultation on tariff issues in the telecom sector
TRAI released a consultation paper on tariff issues in the telecom sector. [63] The current tariff framework gives the telecom service providers the freedom to design the tariffs according to the prevailing market conditions for various telecommunication services. TRAI specifies only a few tariffs such as those for national roaming, rural telephony, and mobile number portability charges. It observed that given the concerns about the financial health of the telecom sector, certain representations have been received on the need for the regulator to fix a floor price for various telecom services.
TRAI noted that the freedom and flexibility to design tariffs based on market conditions has enabled healthy competition in the sector. [64] However, the telecom sector requires huge capital investments for ensuring quality of service as well as adapting to the rapid technological changes and hence, there is a need to ensure the financial well-being of the sector.4 The consultation paper seeks views on the following issues:
Comments on the consultation paper are invited until January 17, 2020.
Youth Affairs and Sports
Anya Bharat Ram ( anya@prsindia.org)
Standing Committee submits report on the Khelo India scheme
The Standing Committee on Human Resource Development (Chair: Dr. Satyanarayan Jatiya) submitted its report on the Khelo India scheme. [65] The scheme aims to revive sports culture and promote excellence in sports. Key observations and recommendations of the Committee include:
For a PRS summary on the report, see here.
[1] Parliament Session Wrap, December 13, 2019, http://prsindia.org/sites/default/files/Session%20wrap%20Winter%20Session%202019%2017th%20LS_Final.pdf.
[2] The Appropriation (No 3) Bill, 2019, Ministry of Finance and Corporate Affairs, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/367_2019_LS_Eng.pdf.
[3] The Citizenship (Amendment) Bill, 2019, http://prsindia.org/sites/default/files/bill_files/Citizenship%202019%20Bill%20Text.pdf.
[4] Bengal Eastern Frontier Regulation, 1873.
[5] S.O. 4433(E), Gazette of India, Ministry of Home Affairs, December 11, 2019, http://egazette.nic.in/WriteReadData/2019/214593.pdf.
[6] “Extention of Inner Line to cover the entire District of Dimapur”, Home Department: Political Branch, Government of Nagaland, December 9, 2019, https://www.nagaland.gov.in/Nagaland/NotificationsAndAlerts/ILPDimapur.pdf.
[7] The Arms (Amendment) Bill, 2019, Lok Sabha website, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/368_LS_Eng_2019.pdf.
[8] The Special Protection Group (Amendment) Bill, 2019, as passed by Lok Sabha, Ministry of Home Affairs, November 27, 2019, http://164.100.47.4/BillsTexts/LSBillTexts/PassedLoksabha/365-C_2019_LS_Eng.pdf.
[9] The Dadra and Nagar Haveli and Daman and Diu (Merger of Union Territories) Bill, 2019, https://www.prsindia.org/sites/default/files/bill_files/The%20Dadra%20and%20Nagar%20Haveli%20and%20Daman%20and%20Diu%20%28Merger%20of%20Union%20Territories%29%20Bill%2C%202019.pdf
[10] “Cabinet approves conduct of Census of India 2021 and updation of National Population Register, Press Information Bureau, Ministry of Home Affairs, December 24, 2019.
[11] Citizenship (Registration of Citizenship and Issue of National Identity Cards) Rules, 2003, http://censusindia.gov.in/2011-Act&Rules/notifications/citizenship_rules2003.pdf.
[12] “Introduction to NPR”, Census of India, http://censusindia.gov.in/2011-Common/IntroductionToNpr.html.
[13] S.O.4700(E), Gazette of India, Ministry of Home Affairs, December 30, 2019, http://egazette.nic.in/WriteReadData/2019/214967.pdf.
[14] “Fifth Bi-Monthly Monetary Policy Statement 2019-20”, Reserve Bank of India, December 6, 2019, https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR135049CE0509E92A44F4B7EA2FDC4A9C3340.PDF.
[15] “Developments in India’s Balance of Payments during the Second Quarter (July-September) of 2019-20”, Reserve Bank of India, December 31, 2019, https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR1556C8DD8A3C4F6C422785A57B59BCD555EF.PDF.
[16] The Taxation Laws (Amendment) Bill, 2019, Ministry of Finance, December 2, 2019, http://164.100.47.4/BillsTexts/LSBillTexts/PassedLoksabha/362-C_2019_LS_Eng.pdf.
[17] The International Financial Services Authority Bill, 2019, Ministry of Finance, November 25, 2019, http://164.100.47.4/BillsTexts/LSBillTexts/PassedLoksabha/363_C_2019_LS_E.pdf.
[18] “The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2019”, Ministry of Law and Justice, The Gazette of India, December 28, 2019, http://egazette.nic.in/WriteReadData/2019/214957.pdf.
[19] ‘Cabinet approves "Partial Credit Guarantee Scheme" for purchase of high-rated pooled assets from financially sound NBFCs/HFCs by PSBs’, Press Information Bureau, Ministry of Finance, December 11, 2019.
[20] ‘Government issues Scheme to provide a one-time partial credit guarantee to PSBs for purchase of pooled assets of financially sound NBFCs’, Press Information Bureau, Ministry of Finance, August 13, 2019
[21] “Guidelines on constituting Board of Management in Primary (Urban) Cooperative Banks”, Reserve Bank of India, December 31, 2019, https://rbidocs.rbi.org.in/rdocs/PressRelease/PDFs/PR156553000914684A448E8ADF26ACEDBDAFFF.PDF.
[22] ‘Cabinet approves the proposal for increase in authorised capital and equity support to India Infrastructure Finance Company Limited (IIFCL)’, Press Information Bureau, Ministry of Finance, December 11, 2019.
[23] RBI releases “Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector, Press Releases, Reserve Bank of India, December 5, 2019, https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=48807.
[24] RBI releases “Guidelines for Licensing of Small Finance Banks in the Private Sector, Press Releases, Reserve Bank of India, November 27, 2014, https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=32614.
[25] “Facing fire on quality of data, Govt gets critics on board reform panel, The Indian Express, December 28, 2019. https://indianexpress.com/article/india/facing-fire-on-quality-of-data-govt-gets-critics-on-board-reform-panel-6188244/.
[26] “Govt sets up committee to bring consistency among economic indices”, Mint, December 28, 2019, https://www.livemint.com/news/india/govt-sets-up-committee-to-bring-consistency-among-economic-indices-11577521260660.html.
[27] The Personal Data Protection Bill, Ministry of Electronics and Information Technology, December 11, 2019, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/373_2019_LS_Eng.pdf.
[28] Code on Social Security, 2019, http://prsindia.org/sites/default/files/bill_files/Code%20on%20Social%20Security%2C%202019.pdf.
[29] The Constitution (One Hundred and Twenty-Sixth Amendment) Bill, 2019, Ministry of Law and Justice, December 12, 2019, http://prsindia.org/sites/default/files/bill_files/The%20Constitution%20%28One%20Hundred%20and%20Twenty-Sixth%20Amendment%29%20Bill%2C%202019.pdf.
[30] Maintenance and Welfare of Parents and Senior Citizens (Amendment) Bill, 2019, Ministry of Social Justice and Empowerment, December 11, 2019, http://prsindia.org/billtrack/maintenance-and-welfare-parents-and-senior-citizens-amendment-bill-2019.
[31] Maintenance and Welfare of Parents and Senior Citizens Act, 2007, http://prsindia.org/sites/default/files/bill_files/1182337322_The_Senior_Citizen_Bill__2007.pdf.
[32] The Prohibition of Electronic Cigarettes (Production, Manufacture, Import, Export, Transport, Sale, Distribution, Storage, and Advertisement) Ordinance, 2019, Ministry of Health and Family Welfare, as passed by Lok Sabha, November 27, 2019, http://164.100.47.4/BillsTexts/LSBillTexts/PassedLoksabha/342-C_2019_LS_Eng.pdf.
[33] The Recycling of Ships Bill, 2019, as introduced in Lok Sabha, http://prsindia.org/sites/default/files/bill_files/THE%20RECYCLING%20OF%20SHIPS%20BILL%2C%202019.pdf.
[34] “Amendments and modifications in the Toll-Operate-Transfer (TOT) model and securitisation of user fee receipts of NH”, No. NH-37012/02/2019-H, Ministry of Road Transport and Highways, December 13, 2019, https://morth.nic.in/sites/default/files/Circular-on-ToT-13-12-2019.pdf.
[35] “Cabinet authorized National Highways Authority of India to monetize public funded national highway projects”, Press Information Bureau, Ministry of Road Transport and Highways, August 3, 2016.
[36] Draft amendments in the Central Motor Vehicles Rules, 2019, Ministry of Road Transport and Highways, The Gazette of India, December 13, 2019, http://164.100.117.97/WriteReadData/userfiles/draft%20GSR%20923(E)%20dated%2013th%20December%20mass%20emission%20standards%20for%20Quadricycle-%20BS%20VI.pdf.
[37] “Cabinet approves transformational Organisational Restructuring of Indian Railways”, Union Cabinet, Press Information Bureau, December 24, 2019, https://pib.gov.in/PressReleseDetail.aspx?PRID=1597352.
[38] The National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorised Colonies) Bill, 2019, https://www.prsindia.org/billtrack/national-capital-territory-delhi-recognition-property-rights-residents-unauthorised.
[39] The Central Sanskrit Universities Bill, 2019, Ministry of Human Resource Development, http://164.100.47.4/BillsTexts/LSBillTexts/Asintroduced/372_2019_LS_Eng.pdf.
[40] The Anti-Maritime Piracy Bill, 2019, Ministry of External Affairs, December 9, 2019, http://prsindia.org/sites/default/files/bill_files/The%20Anti-Maritime%20Piracy%20Bill%2C%202019.pdf.
[41] “Cabinet approves Agreement on Social Security between India and Brazil”, Press Information Bureau, Ministry of External Affairs, December 11, 2019.
[42] “Social Security Agreement between India and Brazil”, Ministry of External Affairs, March 16, 2017, https://www.mea.gov.in/press-releases.htm?dtl/28182/Social_Security_Agreement_between_India_and_Brazil.
[43] “Soliciting suggestions/comments/inputs form the stakeholders on the Draft Registration of Press and Periodicals Bill, 2019”, Ministry of Information and Broadcasting, November 25, 2019, https://mib.gov.in/sites/default/files/Public%20Notice%20%20for%20RPP%20Bill%2C%202019.pdf.
[44] ‘Cabinet approves creation of the post of Chief of Defence Staff in the rank of four star General’, Press Information Bureau, Ministry of Defence, December 24, 2019.
[45] “General Bipin Rawat Appointed as Chief of Defence Staff”, Press Release, Ministry of Defence, December 30, 2019 https://pib.gov.in/PressReleseDetail.aspx?PRID=1598029.
[46] Group of Ministers Report on reforming the National Security System, Press Information Bureau, May 23, 2001, http://pibarchive.nic.in/archive/releases98/lyr2001/rmay2001/23052001/r2305200110.html.
[47] First Report, Standing Committee on Agriculture: “The National Institutes of Food Technology, Entrepreneurship and Management Bill, 2019”, Lok Sabha, December 3, 2019, http://prsindia.org/sites/default/files/bill_files/SCR-%20National%20Institutes%20of%20Food%20Technology%2C%20Entrepreneurship%20and%20Management%20Bill%2C%202019.pdf.
[48] Draft National Food Processing Policy, 2019, Ministry of Food Processing Industries, December 24, 2019, https://mofpi.nic.in/sites/default/files/draft-nfpp.pdf.
[49] “Cabinet approves extension by three years and revision of PM’s Development Package for Horticulture in UTs of J&K and Ladakh”, Press Information Bureau, Cabinet Committee on Economic Affairs, December 11, 2019.
[50] The Draft National Fisheries Development Board Bill, 2019, Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying, December 18, 2019, http://dof.gov.in/sites/default/filess/Draft_NFDB_Bill_2019.pdf.
[51] Report No. 12, Comptroller and Auditor General of India, “Assessment of Environmental Impact due to Mining Activities and its Mitigation in Coal India Limited and its Subsidiaries”, December 11, 2019, https://cag.gov.in/sites/default/files/audit_report_files/Report_No_12_of_2019_Assessment_of_Environmental_Impact_due_to_Mining_Activities_and_its_Mitigation_in_Coal_India_Limited_and_its_Subsidiaries.pdf.
[52] India State of Forest Report, 2019, Forest Survey of India, Ministry of Environment, Forests and Climate Change, December 30, 2019, http://www.fsi.nic.in/forest-report-2019.
[53] “Cabinet approves Atal Bhujal Yojana”, Press Information Bureau, Ministry of Jal Shakti, December 24, 2019.
[54] “Prime Minister releases operational guidelines for the implementation of Jal Jeevan Mission (JJM)”, Press Information Bureau, Ministry of Jal Shakti, December 25, 2019.
[55] “Guidelines for Development of Decentralised Solar Power Plants”, Ministry of New and Renewable Energy, December 13, 2019, https://mnre.gov.in/sites/default/files/webform/notices/Final%20Guidelines%20for%20Development%20of%20Decentralised%20Solar%20Power%20Plants.pdf.
[56] “Report of the High Level Empowered Committee to Address the issues of Stressed Thermal Power Projects”, November, 2018, https://powermin.nic.in/sites/default/files/webform/notices/20 _Nov_R1_Draft_Report_HLEC_Final_20_Nov.pdf.
[57] “Methodology for allocation of coal as per provisions
as Para B (viii) (a) covering Para B (iii) of SHAKTI Policy of Ministry of Coal amended as per Para 2.1 (a) of HLEC Recommendations”, Ministry of Power, December 2, 2019,
[58] “Draft Policy - Promotion of Greenfield investments in the steel sector”, Ministry of Steel, December, 2019, https://steel.gov.in/sites/default/files/Draft%20Policy%20on%20Promotion%20of%20Greenfield%20investments%20in%20the%20steel%20sector.pdf.
[59] Public Notice, Draft policy on Promotion of Greenfield investments in the steel sector in India, Ministry of Steel, December, 2019, https://steel.gov.in/sites/default/files/Public%20Notice_1.pdf.
[60] Report of the Comptroller and Auditor General of India on Pradhan Mantri Ujjwala Yojana, Performance Audit, No. 14 of 2019, Ministry of Petroleum and Natural Gas, December 11, 2019, https://cag.gov.in/sites/default/files/audit_report_files/Report_No_14_of_2019_Performance_Audit_of_Pradhan_Mantri_Ujjwala_Yojana_Ministry_of_Petroleum_and_Natural_Gas_0.pdf.
[61] “Consultation Paper on Review of Interconnection Usage Charges”, Telecom Regulatory Authority of India, September 18, 2019, https://main.trai.gov.in/sites/default/files/CP_on_IUC_18092019_0.pdf.
[62] TRAI issues regulations on wireless to wireless domestic call termination charges, Telecom Regulatory Authority of India, December 17, 2019, https://main.trai.gov.in/sites/default/files/PR_No.124of2019.pdf.
[63] “Consultation paper on tariff issues of the telecom sector”, Telecom Regulatory Authority of India, December 17, 2019, https://main.trai.gov.in/sites/default/files/CP_17122019_0.pdf.
[64] Information Note to the Press (Press Release No. 125/2019), Telecom Regulatory Authority of India, December 17, 2019, https://main.trai.gov.in/sites/default/files/PR_No.125of2019.pdf.
[65] Report no. 311, Standing Committee on Human Resource Development, ‘Khelo India Scheme’, Raja Sabha, December 10, 2019, https://rajyasabha.nic.in/rsnew/Committee_site/Committee_File/ReportFile/16/123/311_2019_12_21.pdf.
DISCLAIMER: This document is being furnished to you for your information. You may choose to reproduce or redistribute this report for non-commercial purposes in part or in full to any other person with due acknowledgement of PRS Legislative Research (“PRS”). The opinions expressed herein are entirely those of the author(s). PRS makes every effort to use reliable and comprehensive information, but PRS does not represent that the contents of the report are accurate or complete. PRS is an independent, not-for-profit group. This document has been prepared without regard to the objectives or opinions of those who may receive it.