Swachh Bharat: Centre to spend Rs 2 lakh cr in 5 yrs

The Centre would spend around Rs 2,00,000 crore over the next five years for the Swachh Bharat Mission, said M Venkaiah Naidu, Union minister for urban development.

The minister also said the government would set up a 'Swachh Bharat Kosh' to provide tax and fiscal incentives. The minister said urban India generates about 68.8 million tonnes of municipal solid waste per year, which means about 1.88 lakh tonnes every day. It is estimated to touch 160 mt per year by 2041.

Solid waste generated in rural areas is around 0.4 mt per day. Nearly one-third of garbage in urban areas is not treated. About 14 mt of garbage is left to rot in the open.

About 38 billion litres of sewage is generated every day by 498 tier-I cities in 2009. About 26 bl of sewage is let out in the open untreated.

Quoting a UN report, the Union minister said India leads the countries where open defecation is prevalent and 68 per cent of rural households have no access to toilets, 88 per cent of total diseases in rural areas is due to lack of clean water, sanitation and improper solid waste management.

He said the government proposes to spend Rs 1.34 lakh crore to construct toilets (11.11 crore toilets in rural areas) and about Rs 62,000 crore will be spent in 4,041 cities. He added 2.47 lakh panchayats will be given Rs 20 lakh each for the next five years to keep their villages clean.

The backbone of all financial transactions

I beg to move that the Payment and Settlement System (Amendment) Bill, 2014 be taken into consideration.

I have gone through the provisions of the Amendment and I have a written note which is ready and I could read out to explain what the amendment is about.

Sir, the payment and settlement system in commercial transactions is the backbone of all financial transactions. I issue a cheque in favour of somebody. It goes through a clearing house from my banker to the recipient bankers and, therefore, there is a payment and settlement system involved in this. Prior to 2007, this was all being managed through an executive notification and authorities created under that.

In 2007, the government at that time, and rightly so, enacted the Payment and Settlement Systems Act, 2007. I would just read from the preamble of that Act one sentence. It will be clear as to what the purpose of that Act was. "An Act to provide for regulation and supervision of payment systems in India and to designate the Reserve Bank of Indiaas the authority, for that purpose and for the matters connected therewith and incidental thereto."

So, the payment systems are to be regulated by the Reserve Bank of India. Now, what does the Act say? The principal Act after definition says that it is only the Reserve Bank and whoever has an authorisation from the Reserve Bank, can run a payment system. In a payment system, you can have two kinds of actors involved. One is a system participant. My bank will be a system participant. In a private transaction, just as for instance today, this radio taxi service controversy is going on, how does a consumer pay for these radio taxies that are currently in controversy? These are not governmental transactions or banking transactions.

Earlier, the system was that he would register himself with the private taxi company and he would come on their WhatsApp. He would give his credit card number. Once he gave his credit card number, every time he wanted to hire a taxi, he would just press the WhatsApp of that taxi. They would locate where the passenger is and then they would pick him up. When he would leave the taxi, he would not pay, but it will be credited to his account.

Now, a violation was discovered that the payment gateway was outside India. So, the Reserve Bank told them to bring it within India. So, from December 1 this year, it appeared in the newspapers that Paytm, a local wallet has been created by one of these companies, which is in controversy. The payment is deposited in advance through a credit card or cash into that wallet. Every time you use the service, you have already paid in rupees. So that wallet becomes the service provider.

When this original Act was enacted, there is a provision that under Section 7, the Reserve Bank will permit an authorisation to any person. It could be a state agency; it could be a non-state agency. But without the authorisation of the Reserve Bank, you cannot become a service provider. That is a designated authority. That is how the commerce in this area is evolved. If you default, what are the consequences etc… the Act provides for it.

There is a provision under Section 23. Section 23 says and since Saugata Roy was raising a point of order, I could quite anticipate what he wanted to say. The amendment is very simple, though it is couched in a very complicated phraseology and unless you understand this commerce, it looks a little complicated. I myself yesterday had spent a lot of time before I could understand it simply. ... (Interruptions)

Mallikarjun Kharge: If we read the Objects and Reasons, we will not be able to understand it.

Jaitley: So far, I think, I am putting very simply. Our lady colleague and I just discussed along with Deepinder Singh Hooda. It took them two and a half to three minutes to follow as to what it is all about.

Section 23 says: "What if the system participant..." That is, suppose, I have to give money to somebody. What happens if either the recipient or I become insolvent? Now the sanctity of commercial transaction is to be respected. So, either of us becomes insolvent under ordinary law of the land and those for whose behalf we are transacting, that is, the bank becomes insolvent. Then under the Banking Regulations Act or the Companies Act, they owe money to me. I will have to stand in a queue. The old Companies Act had a provision under Section 529. First, the taxation authorities get the money after insolvency and liquidation. Thereafter, the workmen will get the money; thereafter, the secured creditors will get the money and in the last, the unsecured creditors will come. So, they are holding my money but I will stand last in the queue. So, the original Act has a provision under Section 23. If a system participant became insolvent, then Companies Act and the Banking Regulations Act will not apply. Under this Act, you first pay to the person on whose behalf you are holding the money. If anything else is left, then that procedure for the rest of the land will apply.

So, the Act in 2007 envisaged this. But the Act did not envisage a situation where not the participant but what if the system provider itself becomes insolvent. If the system provider becomes insolvent, the Companies Act will apply; if the system provider is a bank, the Banking Regulation Act will apply. So, we go back to the same problem. This amendment entirely is that even if the service provider, which is the clearing house, becomes insolvent, then first pay the money to those whose money you were clearing, and if anything is left, then the rest of the procedure will apply. This is entirely the amendment in simple language.

There are some editorial corrections in the original Bill in the language of this section. And then Section 23 is being replaced with those editorial language corrections to say that the procedure of insolvency, which applies to the system participants will also apply to the system provider. That is entirely the Bill.

With these few comments, Sir, I commend this Bill to this House for consideration.

ICRISAT research yields rich dividends

In a 2014 impact assessment study of ICRISAT’s highly successful breakthrough innovations, Jewels of ICRISAT have yielded a return on investment of US$ 43 for every dollar invested with an internal rate of return of 41 percent

The research taken up in the past four decades in the International Crops Research Institute for Semi-Arid Tropics (ICRISAT) under Agriculture Research for Development (AR4D) in this mandal headquarters town has transformed thousands of lives in dry-lands in Asia and Africa.

“In a 2014 impact assessment study of ICRISAT’s highly successful breakthrough innovations – Jewels of ICRISAT- have yielded a return on investment of US$ 43 for every dollar invested with an internal rate of return of 41 percent. Average return on every dollar invested stood at US$ 70 if we include innovations spanning for four decades with an internal rate of 35 per cent return,” said William D. Dar, Director General, ICRISAT, while speaking to reporters here on Friday along with Deputy Director General C.L.L Gowda.

ICRISAT’s 42 anniversary celebrations concluded on Friday. The organisation also held a grand farewell function for Mr. Dar, who was retiring this month end and returning to Philippines . He has completed three five-years term as DG for ICIRSAT. Stating that they were able to improve the lives of lakhs of farmers from Asia and sub-Saharan Africa, Mr. Dar said that the investments into ICIRSAT by development partners have increased from US$22 million in 2000 to US$85 million in 2014. ICRISAT’s three top donors include Bill and Melinda Gates Foundation, United Nations Agency for International Development (USAID) and CGIAR, a consortium of global agricultural research.

To a question, Mr. Dar said that they had already held discussions with Andhra Pradesh Government which has promised to implement ‘Bhuchetana’. “We have asked the government to prepare preliminary section strategy based on which we will prepare translation of strategy into action plan,” he said. 

Testing times for India-Russia ties

With 20 agreements worth billions of dollars signed in one day, Russian President Vladimir Putin’s visit to India was a productive one. The deals touched most of the fields India and Russia cooperate on, from oil, energy and infrastructure to military training, even as the two countries set a bilateral trade target of $30 billion between them by the year 2025. What is more, the opening of India’s rough-diamond procurement policy by Prime Minister Narendra Modi will mean Mumbai can dream of becoming a worldwide hub for the industry. Finally, President Putin’s offer of 12 nuclear reactors is the clearest and most welcome indicator yet that Russia does not share the concerns of other suppliers about India’s liability laws. However, there is no denying that the old lustre of the India-Russia friendship has dimmed somewhat, and many of the affirmations in the “Druzba-Dosti” joint statement of friendship they issued seem problematic. Even before his arrival in Delhi, President Putin’s decision to decline the offer to address a joint session of Parliament indicated that all is not well in the relationship. The problems seem evident: Russia has watched with displeasure as India has diversified its military imports, especially when it comes to helicopter and aircraft purchases.

The slide is not recent, and last year a senior Russian official had made the country’s displeasure clear when he demanded India treat Russia as an “old partner”, calling the decision to buy fighter aircraft and missiles from France, the U.S. and Israel “illogical and unfair”. For its part, India was outraged by the Russian decision to lift its embargo on defence sales to Pakistan, and the first-ever Russia-Pakistan framework agreement that was finalised last month. Given that India still maintains about 70 per cent of its defence inventory from Russian hardware, and is one of Russia’s biggest buyers, the unhappiness on both sides may not change the equations of dependence between them, but it must be addressed. In this context, it is significant that Mr. Modi said the relationship with Russia would remain India’s “closest relationship” and it would be the “most important defence partner”. It is increasingly important for New Delhi and Moscow to reassure each other in spheres other than the commercial ones of defence, energy and trade. Given Russia’s growing isolation from the West, and India’s growing closeness to the U.S. — President Barack Obama’s visit is coming up in January 2015 — their relationship is bound to be challenged in many ways. The U.S. State Department’s statement criticising the India-Russia deals gives a glimpse of those challenges already, and the assurance in Mr. Modi’s tweet will likely be tested further in the coming months: “Times have changed, our friendship has not...”

Generic drug makers get a boost from SC ruling

In a significant development for the pharmaceutical industry, the Supreme Court has rejected multinational Bayer’s appeal to block production and sales of the low cost version of its kidney cancer drug, sorafenib tosylate (branded as Nexavar), by Natco Pharmaceuticals.

Hyderabad-based Natco was granted the first and to date only compulsory licence (CL) by the government in 2012 to make and sell a patented drug at a fraction of the price at which it was sold by the patent holder, Bayer.

Since 2012, Natco has been selling the drug at Rs.8,880 a pack of 120 against Bayer’s selling price of Rs.2.84 lakh. Natco pays Bayer a royalty fee. Bayer has challenged the order before the Intellectual Property Appellate Board (IPAB) and then the Bombay High Court unsuccessfully.

“It is a landmark decision in the patent history of India,’’ was how a senior industry source described the decision.

“It vindicates the stand taken by us keeping in mind the low per capita income levels in the country. The intention is to have wide reach, accessibility and affordability for medicines,’’ a spokesperson from Natco told this correspondent.

Since 2012, Natco treated more than 20,000 cancer patients with the drug, of which 2,000 were treated free of cost, the spokesperson said.

Leena Menghaney, Regional Head (South Asia), MSF Access Campaign, said, “MSF is encouraged by this particularly strategic win for public health and access to medicines, whereby the Supreme Court has worked to ensure continued patient access to affordable versions of this lifesaving cancer drug, in spite of a multi-year campaign by Bayer to reverse the decision.’’

“Today, we applaud this heartening news, which reaffirms India’s critical role in forging a new and progressive path in balancing intellectual property and public health,’’ she said.

“The development will act as a fillip for generic manufacturers and encourage manufacture of affordable drugs to increase accessibility. Being the first and only CL granted by the government to date, it is definitely a positive development for Indian generic drug manufacturers,’’ S. V. Veeramani, President, Indian Drug Manufacturers’ Association (IDMA), said.

China tests hypersonic strike vehicle that can breach US missile shield

China has tested a hypersonic strike vehicle, signaling that Beijing is working on a new ultra- high speed weapon system that can breach the existing missile shield of the United States.

The Chinese Defence Ministry has confirmed an earlier assertion of U.S. defence officials that Beijing had tested Wu-14, a hypersonic glide vehicle. It said that the scientific test in western China was “not directed against any specific country or target.” However, it said that the test was part of China’s strategic nuclear programme.

A separate article posted on the Chinese Defence Ministry’s website quoted Igor Korotchenko, director of the Centre for Analysis of World Arms Trade of Russia as saying that the testing of the hypersonic vehicle proved China's enhanced capability to overcome the missile defence system of the United States.

The Russian news agency RIA-Novosti had revealed that the WU-14, launched by an intercontinental ballistic missile, separated from the missile in the upper atmosphere. It then glided and dived towards the earth at a speed that may be 10 times that of the velocity of sound, reaching around 12,800 km an hour — good enough to breach existing anti-missile defences.

Analysts say that the test coincided with the growing militarization of the Western Pacific, and tensions resulting from maritime disputes in the energy- rich South China Sea.

China is concerned about Washington’s intent to deploy 60 per cent of its naval and air forces in the Asian-Pacific region, under its “Asia Pivot” doctrine, despite its decision to cut down the size of U.S. Army from 520,000 to 440,000.

Speaking in November at the 13th Forum for National Security of China, Zhao Nanqi, vice-chairman of the Chinese People's Political Consultative Conference (CPPCC), said that the Western Pacific is “an intersection of four major strategic powers, namely China, America, Russia and Japan, with a very complicated strategic situation”.

He added: “To safeguard the national security of China, it is very important for us to have an in-depth study and analysis of the strategic situation in the Western Pacific, see the security pattern in the West Pacific clearly, and have in our hands the initiative of safeguarding peace and stability in the Asian-Pacific region.”

Observers say that the imposition of sanctions against Russia following the crisis in Ukraine has significantly strengthened the

strategic cohesion between Beijing and Moscow. The Russian Tactical Missile Weapon Company is also now engaged in the research and development of hypersonic technology, which had been frozen in the 1980s.

Consultation on Convergence of Resources for Tribal Development Held

Union Tribal affairs Minister Shri Jual Oram  has said that efforts should be made to  bridge the gap of economic and social development between  tribals and non tribals in the country .Speaking at the daylong brainstorming  consultation on convergence of resources for tribal development held here today the Minister said issues like gainful employment, quality education, health facilities and availability of safe drinking water are very important in terms of the development of tribals. He urged the participants to give their suggestion with an open mind.       The day long consultation was attended by senior officials from the Union Ministries of Rural Development, Health and Family Welfare, Culture , HRD, Drinking Water and Sanitation, Agriculture and various states and NGOs. Issues such as feasibilities of convergence of activities, funds and resources with key stakeholders, requisite timelines for effective implementation of programmes, issues and challenges in achieving the intended convergence, opportunities to overcome the constraints, model strategic framework for management of resources and innovative / corrective measures to be incorporated in the existing guidelines to address the critical missing links were discussed. ‘               Both Central Government and State Governments have taken various initiatives for development of tribal people in the past. However, the human development indices for tribal population is not showing expected trend in general over the years at par with other social groups. The indicators in respect of health, education, livelihood, women empowerment, access to drinking water etc. are alarmingly low, as per the figures reflected in Census 2011. Further, preservation, protection and promotion of their rich cultural and traditional heritage calls for  special attention.              Funds for tribal development are sourced from (i) State Plans; (ii) Funds under TSP components of Centrally Sponsored Schemes (CSS) administered by Central Ministries/ Departments; (iii) Special Central Assistance to Tribal Sub Plan (SCA to TSP), Grant under Article 275 (1) of the Constitution and other schemes implemented by Ministry of Tribal Affairs; and (iv) Institutional Finance.