Shyamala Gopinath Committee for KVP

The Shyamala Gopinath Comrnittee constituted on Small Savings Schemes has submitted its report to the Government. Major recommendations of the committee were:- (i) to reduce/abolish agent`s commission except Manila Pradhan Kshetriya Bachat Yojana (MPKBY) agents to restrict management cost (ii) secondary market yields on Central Government Securities of comparable maturities should be the benchmarks for the interest on various small savings instruments and should be reset every 1s1 April (iii) Committee recommended to reduce minimum share for States from 80% to 50% against net collection and recommended that amount received on redemption of Central/State Governments securities should be reinvested between Centre and States in the ratio of 50:50. After detailed deliberation and in light of views received from State Governments, various Departments of Central Government and Agent`s Association, most of the recommendations of the Committee are being implemented. In view of developments observed by the Committee in 2011 on AML/CFT front the KVP was recommended to be discontinued by the Committee. KVP has been re-notified by the Government on 23-9-2014. Under the re-notified KVP the investor has to undergo the Know Your Customer (KYC) modalities at Post Office or Bank.

Wish you all the best for your IAS Mains exam!!,SAMVEG IAS DEHRADUN

Finally the time has come when you have to perform for your better future.Look at it as an oppotunity to achieve something that you would like to enjoy most.It is nothing like fail or pass.This is time to keep motivated  your self and give your 100%  during exam.Attempt maximum number of questions as every marks are imp for your selection.

Hoping god will be always with you...again best of luck

SAMVEG IAS

Second National Lok Adalats across the country settles 1.25 crore cases

The Second National Lok Adalat was held acrossIndia on 6th December 2014 involving the Supreme Court, 24 high courts, districts courts and taluka-level courts.

These nationwide adalats settled nearly around 1.25 crore pending and pre-litigation cases and brought financial relief of over 3,000 crore rupees to ordinary litigants in a single day.

It was organised by the National Legal Service Authority (NALSA) and has helped to reduce backlog of cases by about nine percent in all the States.

Even in the Supreme Court, 28 out of 53 cases put up for settlement were disposed of and cheques were handed out at the time of settlement itself.

In the Second National Lok Adalat, the cases settled out of court included family disputes, matrimonial cases, motor accident claims, bank recoveries, petty criminal matters, revenue matters, disbursement of payment under theMGNREGA and other government welfare schemes.

About Lok Adalats

Lok Adalats (people’s courts) settle dispute through conciliation and compromise. The First Lok Adalat was held in Una city in Junagarh district ofGujarat in 1982. Generally, Lok Adalat accepts the cases pending in the regular courts within their jurisdiction which could be settled by conciliation and compromise.

The decision of the Lok Adalat is binding on the parties to the dispute and its order is capable of execution through legal process. No appeal lies against the order of the Lok Adalat.

First National Lok Adalats was held across the country in all courts on 23rdNovember 2013. It had settled a record 28.26 lakh cases pending in various courts.

Good intent not enough for good policy

In order to deliver on its promise of an independent nuclear programme, unencumbered by foreign pressure, and uphold the importance of nuclear power in India’s energy mix, the Modi government will have to find a way out of the impasse created by the present civil liability regime

The Indian Civil Liability for Nuclear Damage Act (CLNDA) of 2010 is a good example of how good intentions alone do not lead to good policy. After obtaining a historic waiver from the Nuclear Suppliers Group in 2008, which enabled India to engage in international civil nuclear commerce and acquire new technology for Gen 3 nuclear power plants, India adopted the CLNDA whose ambiguous provisions have adversely impacted expansion of nuclear power generation capacity. These provisions may be well intentioned but the open-ended liability law makes all vendors, domestic and international, reluctant to engage with the Nuclear Power Corporation of India Ltd. (NPCIL). Since 2010, NPCIL has been unable to launch any new nuclear power project (Kudankulam 1&2 predate the CLNDA) and faces difficulties even in sourcing spares domestically for its indigenously designed Pressurised Heavy Water Reactors (PHWR).

Importance of targets

This reluctance has negative consequences because to sustain annual growth rates of 9 per cent till 2035, India’s power generation has to grow 6 to 7 times. From 225 GW of installed capacity today, covering thermal, hydel and renewables, it has to reach 1,200 GW by 2035. Nuclear generation accounting for 4.8 GW today could rise to 80 GW, which is consistent with India’s three-phase nuclear programme and the quest for long-term energy security. To meet this target, seven more indigenously designed PHWRs are expected to come on stream by 2017 taking capacity to 9 GW. In the second stage, with 10 Light Water Reactors set up with international collaborations (the United States, France and Russia), another 10 PHWRs and the proven prototype Fast Breeder Reactor, Indian nuclear generation should reach 30 GW, ready to transition to the third stage, based on the thorium generated U-233 cycle. However, the nuclear installed capacity remains static though capacity utilisation has gone up, thanks to imported uranium fuel.

The Bharatiya Janata Party’s election manifesto promised a “two-pronged independent nuclear program, unencumbered by foreign pressure and influence” and on the civilian side, reiterated the importance of nuclear power in India’s energy mix, while committing to “invest in India’s indigenous Thorium Technology Programme”. To deliver on this, the Modi government will have to find a way out of the impasse created by the present liability regime. It needs to be understood that this is necessary not in order to import Gen 3 reactors from foreign sources, but even if NPCIL chooses to follow the indigenous route because Indian vendors are equally concerned about the open-ended and ambiguous provisions of the CLNDA. Earlier, NPCIL included a “hold harmless” clause in its contract with Indian vendors absolving them of liability, but this is no longer possible after the CLNDA.

International liability regimes

A peculiarity about international nuclear liability law is the concept of “channelling.” In order to encourage its private sector to enter the nuclear power sector, the U.S. introduced “economic channelling” through the Price Anderson Act (1957) under which victims can initiate lawsuits against the power plant operator and other parties (designer, equipment vendors, etc), consistent with tort law. However, in order to make it easier for victims to claim compensation in case of an accident, the operator bears the entire financial liability burden and is obliged to take out omnibus insurance, to indemnify the vendors. The operator nevertheless enjoys right of recourse against designers, vendors, constructors, etc. In 1979, following the Three Mile Island accident, the victims sued the operator, the designer and the constructor. While settlement was done by the operator, the operator had sued the designer and this suit was settled out of court. Operators accepted economic channelling but with a financial ceiling and a limited time frame within which liability claims would be admissible. For the victim, the advantage was strict liability (the victim does not need to prove negligence), a single forum and a single applicable law.

However, when U.S. companies began exporting know-how and technology to Europe, they were not willing to bear liability for a nuclear accident in a foreign country. Harvard Law School and the Atomic Industrial Forum came up with a report promoting “legal channelling” and with the U.S. government’s support, this became the international norm beginning with the Paris Convention in the Organization for Economic Cooperation and Development (OECD) in 1960, the Vienna Convention in the International Atomic Energy Agency (IAEA) in 1963 and the 1997 Convention on Supplementary Compensation (CSC). India signed the CSC but finds it difficult to ratify it because of inconsistency with domestic legislation.

Ambiguities in CLNDA

The key point in “legal channelling” is that victims can only sue the operator and no civil suits can be initiated by the victims or the operator against the vendors, designers or contractors, and, the law of torts is set aside. The rationale used in the Harvard Report was that post delivery, vendors lose control over their products and services and accidents could be caused on account of poor management. Incidentally, while the U.S. has been a strong promoter of “legal channelling” abroad, domestically, it has maintained “economic channelling” which retains applicability of tort law albeit in a modified manner.

The concept of “channelling” was justified on the grounds that the nuclear industry was in its infancy, insurance markets and pools were not well developed and open-ended tort law applicability would make insurance costs impossible to define. The situation is different today and there is a growing feeling that “legal channelling” is no longer needed. The CLNDA rejects channelling and introduces “supplier liability,” more in keeping with today’s thinking. However, while protecting the interests of the victims, it ends up making the notion of “supplier liability” somewhat infinite and open-ended, generating legitimate concerns on the part of the vendors, leading to the current impasse.

There are two contentious provisions in the CLNDA. Section 17 allows the operator (NPCIL at present) to have right of recourse for nuclear damage against a supplier on three counts — if it is provided in the contract, if it is on account of equipment having “latent or patent defects” or provision of “substandard services”, or if there has been intent to cause damage. The first and third counts are consistent with international regimes; the second provision raises questions. These terms are neither defined nor is there guidance as to what standards would apply in an Indian court. Further, analysis of reactor incidents has indicated that it is impossible to identify a particular component or equipment as the defective one which could lead to unending litigation. However, in order to safeguard the victims’ interests, the operator’s right of recourse only kicks in after payments for nuclear damage have been made. In other words, the CLNDA retains the strict and exclusive liability principles associated with “channelling.” Section 46 provides that the provisions of the CLNDA are “in addition to, and not in derogation of, any other law,” which has the effect of making the supplier subject to Indian laws that apply to any industrial accident including criminal liability, tort law, etc, leaving potential liability open-ended and insurance difficult to manage.

Under the CLNDA, a set of Rules was promulgated in 2011. Rule 24 was intended to address these concerns but failed to do so and generated further questions. It limits the operator’s right of recoursevis-à-vis the supplier, both monetarily and in terms of a time frame. However, while it is clear that Rule 24 applies to the first part of Section 17, there are questions about its applicability to the second part.

The way forward

To resolve this, the Modi government will need to follow certain guidelines. First, the problem needs to be identified as first and foremost, a domestic vendor problem and not misconstrued as addressing foreign vendors’ concerns. Second, it has to be addressed in an open and transparent manner involving all stakeholders including civil society and media, and not by stealth or clever fixes which end up in embarrassing dead-ends. The two principles of safeguarding victims’ interests, in terms of both strict and exclusive jurisdiction, and prompt redress of damage claims, have already been accepted and are not undermined by any redistribution of rights and obligations between the operator and the suppliers. Given the slow pace of litigation in India, “channelling” would be beneficial to victims but cannot coexist with general applicability of tort law. Therefore, just as Rule 24 constrains parts of Section 17, definitions of new terms and rules have to be developed to ensure that supplier liability is neither open-ended nor infinite. Second, cascading insurance premiums should not render nuclear power economically unviable.

Finally, we need to think in the long term. Tomorrow, the nuclear power sector could be opened up to private operators as is the case with other power generation. As the repository of power reactor technology, NPCIL will then be the design provider and would hardly like to be faced with the CLNDA as it currently stands. Good intentions need a vision to translate into good policy.

President of India attends Valedictory Function of 89thFoundation Course at LBSNNA

The President of India, Shri Pranab Mukherjee attended the Valedictory Function of 89th Foundation Course for Civil Services at the LalBahadurShastri National Academy of Administration, Mussoorie today (December 12, 2014). Speaking on the occasion, the President congratulated the young officer-trainees and said that they have entered the All India Services and Central Civil Services after clearing the Civil Services Examination, which is one of the toughest examinations in the country. He stated that these young officers of the nation, are going to work in various sectors of administration, furthering the cause of the nation in different spheres. He asked officers to remember that in whatever branch they are engaged in they should never lose sight of the pan-India perception which is welfare of the people and progress of the nation. The President said that the provisions of the Constitution of India have taken care of the evolving needs of our growing democracy. Adhering to our Constitutional charter, India’s governance framework has been geared towards upholding our democratic structure. The role of the civil service has to be perceived in the context of preserving these values. He said that good governance is the exercise of power, within the framework of the Constitution, for efficient and effective management of our economic and social resources for the well-being of the people, through the institutions of state. ‘Good governance’, as a concept, has been in vogue since the ancient times. Kautilya had mentioned about the inseparable link between the happiness of a king and that of his subjects. Good governance stands for a framework that has the singular agenda of well-being of the people. The President stated that Public administration plays a pivotal role in our polity. He advised the young officers that they should always be responsive to the needs of the public. They should adopt a rational approach while performing their duties.

The UN World Economic Situation and Prospects 2015 (WESP) report

India’s economic growth is expected to improve to 6.3 per cent in 2016 with the country leading economic recovery in South Asia, according to a United Nations report.

The UN World Economic Situation and Prospects 2015 (WESP) report, launched on 10 December 2014, also said India is likely to make progress in implementing economic policy reforms and help provide support to business and consumer confidence.

It said global economic growth is forecast to continue increasing over the next two years, despite legacies from the financial crisis continuing to weigh on growth, and the emergence of new challenges, including geopolitical conflicts such as in Ukraine, and the Ebola outbreak in West Africa.

The global economy is expected to grow 3.1 per cent in 2015 and 3.3 per cent in 2016, compared with an estimated growth of 2.6 per cent for 2014, when the pace of expansion has been moderate and uneven.

It said India, which is estimated to record a 5.4 per cent economic growth in 2014, will see GDP growth improving to 5.9 per cent next year and 6.3 per cent in 2016.

Economic growth in South Asia is also set to gradually pick up from an estimated 4.9 per cent in 2014 to 5.4 per cent in 2015 and 5.7 per cent in 2016.

“While the recovery will be led by India, which accounts for about 70 per cent of regional output, other economies such as Bangladesh and Iran are also projected to see stronger growth in the forecast period,” the report said.

The about six per cent growth projected for India in 2016 will be the highest since the 2008-2011 period when it had grown at about 7.3 per cent.

Economic growth had slowed to 4.7 per cent in 2012, according to the UN report.

During 2014, East Asia, including China, managed to register relatively robust growth, while India led South Asia to a moderate strengthening.

Developing countries as a group are expected to grow at 4.8 per cent in 2015 and 5.1 per cent in 2016, up from the 4.3 per cent estimated for 2014.

The report added that along with robust external demand, growth is expected to be underpinned by a moderate strengthening of domestic consumption and investment as countries benefit from improved macroeconomic conditions.

“Several countries, notably India, are likely to make progress in implementing economic policy reforms, thus providing support to business and consumer confidence,” it said.

The report, however, warned of significant downside risks for the South Asian region due to the continuing fragility of the global economy and considerable country-specific weaknesses, including political instability and the agricultural dependency on the monsoon.

Average inflation for developing economies will also fall slowly over the outlook period.

While inflation for East Asia will stay around the recent levels of 2-3 per cent over the outlook period, a pronounced decrease is forecast for South Asia due to falling inflation in almost all countries, especially in India and Iran.

Regional average inflation for South Asia is projected to decrease gradually from 14.7 per cent in 2013 to 7.2 per cent in 2016.

Apart from India, the baseline forecast projects a moderate growth recovery in 2015 and 2016 for almost all emerging economies, including Brazil, Indonesia, Mexico, Russia, South Africa and Turkey.

“While some economic indicators are positive and moving in the right direction which points to the potential for a gradual return to consistent economic growth, many risks and uncertainties could dash efforts to get the global economy on track and moving forward,” Director of the Development and Policy Analysis Division for the UN Department of Economic and Social Affairs Pingfan Hong said.

The US economy is expected to improve in 2015-2016, with GDP projected to expand by 2.8 and 3.1 per cent, respectively.

The forthcoming further normalization of the US Federal Reserve’s monetary policy posed significant risks and uncertainties for the global economic outlook, depending on the timing and strategy of the monetary tightening, as well as the response by financial markets, the report said.

Only a slight improvement in growth is expected in Western Europe from 1.7 per cent in 2015 to two per cent in 2016.

The region is held back by the travails of the euro area, where the level of GDP has yet to regain its pre-recession peak. To reduce risks and meet challenges, the report says, it is imperative to strengthen international policy coordination.

In particular, macroeconomic policies worldwide should be aligned toward supporting robust and balanced growth, creating productive jobs, and maintaining long-term economic and financial stability

Ebola fighters named `TIME’s Person of the year 2014`

Washington: The TIME magazine has announced its decision to honour the “unprecedented numbers” of doctors and nurses, who responded when Ebola hit an already-weak public health infrastructure, as “Time’s Person of the Year.”

Terming the epidemic a “war and a warning,” Editor Nancy Gibbs explained how the governments were poorly equipped to respond to the outbreak, the World Health Organisation (WHO) was in denial and “snarled in red tape” and the first responders were accused of “crying wolf as the disease spread,” reported the CNN.

She added that the world could sleep at night because a group of men and women were willing to stand up and fight. “For tireless acts of courage and mercy, for buying the world time to boost its defenses, for risking, for persisting, for sacrificing and saving, the Ebola fighters are Time’s 2014 Person of the Year,” she said.

The TIME magazine’s cover will feature five Ebola fighters including, 37-year-old ambulance driver, Foday Gallah, who contracted Ebola while trying to comfort an infected child, Dr. Jerry Brown, a Liberian surgeon who converted his hospital’s chapel into one of the country’s first treatment centers, Salome Karwah, an Ebola survivor who lost both parents to the disease and undertook the task of counseling patients in Liberia, Ella Watson-Stryker, a Doctors Without Borders health promoter and Dr. Kent Brantly who became the first American to contract Ebola while running a treatment center in Monrovia.

According to WHO estimates, about 6,300 people were killed in the epidemic in West Africa. Almost 11,000 confirmed cases of Ebola have been reported in Guinea, Liberia and Sierra Leone while, 6,000 suspected and probable cases loom, the UN agency said.