2 October 2015

India’s Intended Nationally Determined Contribution: At a Glance

India’s Intended Nationally Determined Contribution: At a Glance
India has submitted its Intended Nationally Determined Contribution (INDC) to the United Nations Framework Convention on Climate Change. Some of the salient points of the INDC are:

• To put forward and further propagate a healthy and sustainable way of living based on traditions and values of conservation and moderation.

• To adopt a climate-friendly and a cleaner path than the one followed hitherto by others at corresponding level of economic development.

• To reduce the emissions intensity of its GDP by 33 to 35 per cent by 2030 from 2005 level.

• To achieve about 40 per cent cumulative electric power installed capacity from non-fossil fuel based energy resources by 2030, with the help of transfer of technology and low cost international finance, including from Green Climate Fund.

• To create an additional carbon sink of 2.5 to 3 billion tonnes of CO2 equivalent through additional forest and tree cover by 2030.

• To better adapt to climate change by enhancing investments in development programmes in sectors vulnerable to climate change, particularly agriculture, water resources, Himalayan region, coastal regions, health and disaster management.

• To mobilize domestic and new and additional funds from developed countries to implement the above mitigation and adaptation actions in view of the resource required and the resource gap.

• To build capacities, create domestic framework and international architecture for quick diffusion of cutting edge climate technology in India and for joint collaborative R&D for such future technologies.

Grow Safe Food” Campaign Initiated to Create Awareness

Measures Undertaken by Government for Judicious and Proper Use of Pesticides

“Grow Safe Food” Campaign Initiated to Create Awareness
Government of India has taken several measures for proper use of pesticides by the farmers in the country. The pesticide residue data generated under the “Monitoring of Pesticide Residues at National Level” are shared with State Governments and concerned Ministries/Organizations to initiate the corrective action for judicious and proper use of pesticides on crops with an Integrated Pest Management approach and to generate awareness amongst farmers.

Department of Agriculture, Co-Operation & Farmers Welfare (DAC&FW) emphasizes Integrated Pest Management (IPM) which promotes biological, cultural and mechanical methods of pest and advocates need based, judicious use of pesticides. DAC&FW implement a scheme “Strengthening and Modernization of Pest Management Approach in India” to promote Integrated Pest Management (IPM) which is an environment friendly broad ecological approach for managing pest problems. It encompasses pest control techniques such as cultural, mechanical and biological with minimum dependence on chemical pesticides. Human Resource Development in IPM is done by imparting training to Agriculture / Horticulture Extension Officers and farmers at Grass Root Level by organizing Farmers Fields Schools (FFSs) and Seasonal Long Training Programmes (SLTPs). The DAC & FW has established 35 Central IPM centers in different states to promote IPM Strategies. Grant-in-aid is also provided to the States for establishment /strengthening of State Biocontrol Laboratories. A total of 313 SBCLs have been established across India.

“Grow Safe food” Campaign has been initiated to create awareness about the safe and judicious use of pesticides among the various stakeholders. In addition to the above, DAC&FW has revised 68 Integrated Pest Management (IPM) Packages of Practices for major crops giving impetus to ecological and cultural techniques of pest management. Under the Insecticide Act 1968, insecticides are registered after evaluating the safety of the product with respect to human health. The terms of registration also include instructions for farmers and users of pesticides on label and leaflets of containers on safe use of pesticides. If the pesticide is used as per the instructions on labels and leaflets, they are unlikely to leave behind unwanted residues in the agri-produce.

BACKGROUND

The Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture is regularly monitoring the pesticide residues in food commodities and environmental samples under the central sector scheme, “Monitoring of Pesticide Residues at National Level”. The scheme was initiated during 2005-06 and has 25 participating laboratories representing Ministry of Agriculture, Indian Council of Agriculture Research, Ministry of Health and Family Welfare, Ministry of Environment and Forest, Council of Scientific and Industrial Research, Ministry of Chemical and Fertilizer, Ministry of Commerce and State Agricultural Universities across the country. The participating laboratories collect food commodities samples from various Agriculture Produce Marketing Committee (APMC) markets, Public Distribution Systems (PDS), Farm Gates and irrigated water and soil samples from agricultural fields across various parts of the country. The samples are analyzed for the presence of possible pesticide residues in various food commodities such as vegetables, fruits, cereals, spices, pulses, milk, butter, irrigated water, fish, meat, tea etc.

30 September 2015

Time to relook RESERVATION

Leaders of different communities had so much confidence in the fairness of the country when it won freedom, that none of them wanted caste-based reservation system. The Muslim leaders rejected then home minister Sardar Patel's offer of a 15 per cent quota in government jobs and education institutions. Their argument was that reservation fostered a parochial thinking. The country had paid an enormous price in the shape of partition for the communal electorate introduced by the British.

Then law minister B R Ambedkar, himself a Dalit, said that his community did not want to walk with the help of crutches all their lives. After a lot of pressure, Ambedkar was persuaded to accept reservation for the scheduled castes and scheduled tribes for 10 years. Little did he know then that reservation would become a permanent feature because of the vote bank it provided?

It is unfortunate that the caste system, even after hundreds of years, remains an integral part of the Hindu society. The Dalits are still at the lowest rung of the ladder. It is an open secret that rural areas have separate habitations for the Dalits, at a considerable distance from where the upper castes live. Now, a debate has begun on whether reservation needed a relook, but not on the discrimination which is still practiced against the Dalits, openly and unashamedly.

RSS chief Mohan Bhagwat's suggestion has jolted the status quo so much that the BJP has distanced itself from the proposal of another look at reservations. The vested interests continue to be decisive. Many Dalits have embraced Islam to escape discrimination. But some have found, to their horror, that the tag of discrimination stays with them even in the casteless Islam once classification is acquired.

True, many pronouncements, some by the law courts, have pointed out that the "creamy layer" should, at least, be barred from reservation. But they are the most vocal and most influential. This explains why the RSS chief remains a lonely figure in the entire Sangh parivar.

His disappointment must have increased after Rajasthan, a BJP-run state, gave quota to the poor in the upper castes. This humanistic gesture reads well but it is against what the constitution makers had in mind. They gave reservations only to the Dalits because the Hindu society, for centuries, had denied them the basic dues. It was a sort of repentance translated into concessions.

There were poor among the upper castes even at that time. But both Jawaharlal Nehru and Sardar Patel were able to persuade the Constituent Assembly that the upper caste must do the penance for the excesses committed. The state is violating the Supreme Court's directive that reservation should not exceed the limit of 50 per cent. Unfortunately, this malady is spreading. It is comical to see today that the Patels, a well-off, upper caste business community, is demanding reservation. The government in Gujarat, again run by the BJP, is dealing severely with the 22-year-old maverick leader Hardik Patel who is agitating for reservations for the Patels.

Other states are keenly watching whether Rajasthan and Gujarat will get away with the quota because they have the same thing in mind. The Narendra Modi government should have taken the BJP-run states, particularly Rajasthan, to task because the entire federal structure faces danger of a collapse. The Modi government has a strange kind of confidence that when the chips are down, all states, with a predominant Hindu majority population, will not go to the brink.

Probably, Modi will use the whip of discipline after the Assembly election in Bihar. Any kind of action at this time, when the state is only a few weeks away from polling, can boomerang and harm the BJP's fortunes. However, time has come when all political parties should sit together to ponder over reservation on the basis of caste and creed. A constitutional position for only 10 years has become permanent. All parties support the continuation whenever such a constitutional amendment comes before parliament.

Demolish caste barriers

A country which has the word 'secularism' in the preamble of its constitution should break the shackles of caste. Socialism requires the demolition of caste barriers. The ruling BJP should initiate a legislation to lay down the criteria on the basis of economic status. A poor Brahmin is no less deserving than a Dalit. What about the Muslims? The Sachar Committee pointed out that their condition has been worse than that of the Dalits. With the soft-Hindutva embracing the country, the future of minorities is becoming more and more questionable.

If there was a survey, it would underline the fact that unemployment among the Muslims is rising. Since they cannot afford good schools, they figure less in jobs through competitive examinations. They are not even a fraction of some 18 per cent of population in the country. Their backwardness should be a matter of concern. Idle hands take to desperate methods. What is more important than anything else is to foster social relations between Hindus and Muslims. The togetherness witnessed during Diwali or Eid is missing. Mixed localities have become fewer.

Take, for instance, the debate over Netaji Subhas Chandra Bose files. It unnecessarily became an emotional issue. For days, the entire nation was engrossed in discussing whether the files should be made public or not. The nation suddenly became oblivious to the basic issue of development. It must keep uppermost in its mind that one-third of Indians go to bed with just one meal in 24 hours.

The Modi government has ruled the country for more than one and a half years. Its promise to give livelihood to all remains as distant as it was on the day Modi took the oath to assume power. Except for the usual rhetoric, there is nothing on the ground to indicate that his promise of "sab ka saath, sab ka vikas" is near implementation. The nation is still waiting.

What is the Indian Financial Code

The revised draft of Indian Financial Code, released on 23 July 2015, has already made to the headlines, as it proposes to dilute the RBI Governor's power; he may no longer have the power to veto policy rates.
The major change as of now is that there will be four members appointed by the central government and three from RBI, earlier the ratio was other way around.
The IFC bill is expected to table in the Winter session of the parliament. The Parliament will finalise the code, which will eventually find its way to the Union Cabinet for approval.  
What is the Indian Financial Code? How does it work? 
The Financial Sector Legislative Reforms Commission (FSLRC) was set up on March 24, 2011, for re-writing the Code to regulate the financial sector and introduce principles for financial regulation and the constitution, objectives, powers and interaction of financial agencies. Its aim was also to bring about coherence and efficacy in the financial regulatory framework.
In 2013, the commission, headed by Justice BN Srikrishna, submitted its report in two volumes, which included 'Analysis and Recommedation' and 'Draft Law'. The revised draft in twenty parts will strive to regulate financial agencies.
Under this Act, the Financial Sector Appellate Tribunal was established to exercise the jurisdiction, powers and authority conferred upon it.
According to the Act, the general direction and management of the financial agencies will be vested in the respective boards -- the Financial Authority Board for the Financial Authority, the Reserve Bank Board for the Reserve Bank, the Redress Agency Board, with respect to the Redress Agency, the Corporation Board for the Corporation; the Council Board for the Council and the Debt Agency Board, with respect to the Debt Agency.
The Code deals with the establishment of financial agencies, establishment and structure of the tribunal, allocation and regulation of financial services.
A part of it discusses the functioning of financial agencies, such as boards of financial agencies, strength and composition of boards; decision making, advisory councils, accountability mechanisms and funding for financial agencies.
It also mentions the disposal of applications, information and inspections, investigations and offences as executive functions of financial agencies. These financial agencies also have quasi-judicial functions -- administrative law, show cause notices and orders, enforcement actions, procedure for enforcement actions and penalties. 
Moreover, the Code also clarifies financial consumer protection, prudential regulation, contracts, trading and market abuse, capital controls, resolution of financial service providers, financial stability and development council,  development (provisions for review), public debt management  agency, offences, functions, powers and duties of tribunal, miscellaneous, and schedules. 


Analysis
The finance ministry has put out a revised draft in public domain and invited comments from stakeholders.

The commission proposes a financial regulatory architecture featuring six agencies:
(a) Financial Authority;
(b) Reserve Bank of India;
(c) Financial Redress Agency;
(d) Resolution Corporation;
(e) Financial Stability and Development Council; and
(f) Public Debt Management Agency

The 10 big changes the revised draft of the Indian Financial Code proposes could change the functioning of the Indian financial sector

1. MONETARY POLICY

Now: The Reserve Bank of India (RBI), and within the central bank it is the governor who enjoys absolute power in deciding interest rate

Proposed: The committee approach to decide interest rate where government will appoint four members, while three will be from RBI

Impact: RBI loses its power to decide interest rate. If autonomy of RBI is compromised in the eye of investors, it could have serious implications

2. MANAGING GOVERNMENT'S DEBT

Now: The central bank - investment banker for the government - manages its debt

Proposed: An independent debt management agency to manage government's borrowing

Impact: Conflict of interest issues are overblown on either side. There will be some conflict whether RBI or government manages it. But an independent debt management agency, with external professionals from the beginning could turn out to be risky, as they will not have experience of managing government debt

3. STABILITY AND SYSTEMIC RISK

Now: The Financial Stability & Development Council (FSDC), was set up in December 2010 to strengthen and institutionalise the mechanism for maintaining financial stability, and enhancing inter-regulatory coordination and promoting financial sector development. The chairman of FSDC is the finance minister, with all the sectoral regulators as members. FSDC also focuses on financial literacy and financial inclusion

Proposed: FSDC to identify and monitor systemic risk. To take all required action to eliminate or mitigate systemic risk

Impact: In the US and UK, macro prudential regulation and supervision are a mandate of the central bank. Limiting the universe of systemic risk tools to three could be an area of concern, as more such risks could be evolving. The central bank, being the monetary policy authority and the only lender of last resort, is the natural choice for being the systemic regulator

4. REGULATION OF BANKS/NBFCS

Now: RBI is the regulator for the banking system, as well as non-banking finance companies and primary dealers

Proposed: RBI continues to be the banking regulator and for systematically important payment systems but non-bank credit institutions will be regulated by the Financial Authority. The Financial Authority will also regulate all financial products

Impact: Could lead to fragmentation of regulation and give rise to regulatory arbitrage. There is a view that RBI should oversee non-bank financial entities like insurance and mutual fund companies due to their interconnectedness with the banking system

5. REGULATION OF ENTITIES IN THE PAYMENT SYSTEM

Now: RBI is the regulator of prepaid payment instruments and has laid regulatory norms for payments banks

Proposed: Only systematically important payments systems will be regulated by RBI

Impact: Many new players are emerging with rapid product innovations. The full impact of all these on financial stability and monetary policy are not clear. RBI, which is the regulator of the payment and settlement systems of the country, could lose some power to oversee this function

6. CONSUMER PROTECTION

Now: While RBI has an ombudsman and insists on banks treating their customers fairly, banks routinely flout norms and mis-sell products. The penalties levied by RBI on banks for violating norms related to mis-selling of financial products to consumers are the bare minimum

Proposed: A separate consumer agency is proposed to protect and promote the interests of consumers and promote public awareness of matters relating to financial products and services

Impact: A welcome step to protect consumer interest, as the regulator is unable to both regulate and solve disputes in a time-bound manner

7. CAPITAL CONTROL

Now: The present law under FEMA vests the power of capital account regulation with RBI. In practice, the government and RBI consult before initiating a policy measure. While the government takes decisions on various issues, like foreign direct investment, the notification is issued by the central bank

Proposed: The government will "consult" RBI to make rules on capital controls (section 241). This consultation will cover the problem to be addressed, the goal sought to be achieved and the alternatives available to address problems and achieve goals. RBI will work as an administrator to implement rules. The draft code empowers the government to prescribe rules to seek its nod for capital account transactions which affect national security

Impact: The present practice of both the government and RBI being involved in deciding capital control has served the country well, particularly during the global financial crisis and the Asian crisis. The conduct of monetary policy will be weakened if capital control regulation is taken out from the central bank. Interestingly, the code is silent on the issue of financial stability

8. REGULATION OF MONEY MARKETS

Now: RBI regulates all these markets

Proposed: Separating regulation of such markets from RBI

Impact: In India, the exchange rate and interest rate are not fully market-determined. Due to the high fiscal deficit of the government, statutory liquidity ratio of banks are not going to come down in the near future. Since volatile capital flows impact such markets, the central bank should have a role in regulating these markets

9. ADDRESSING OPACITY IN DECISION MAKING

Now: Current regulatory decision-making process lacks transparency

Proposed: The annual reports of RBI and the central government must give a complete disclosure and analysis of the performance of functions by the central government and RBI. They must include the total number of approvals granted, the applications rejected and the time taken for disposal of each application. The FSDC must also publish in its annual report all significant trends identified in the financial system and an assessment of the stability and resilience of the financial system

Impact: These disclosures will bring about much-needed transparency and will reduce information asymmetry that currently plagues the system

10. ESTABLISHMENT OF A RESOLUTION CORPORATION

Now: There is no Resolution Corporation. The regulator has complete power over resolution of institutions

Proposed: The new code proposes to establish a Resolution Corporation to carry out resolution of certain types of financial institutions in distress. The corporation can take over the entity if it is classified in the category of critical risk. It can also inspect an entity independently, if it opines that the regulator's assessment of risk to viability of a covered service is incorrect

Impact: This is likely to speed up the process of resolution. Currently, this process is time-consuming, as was seen in the case of the Madhavpura Merchantile Cooperative Bank. This proposal is in line with similar institutions in other countries

29 September 2015

Wages for the parliamentarians

The idea of creating an Emoluments Commission to recommend salaries and allowances for Members of Parliament has not come a day too soon. The pay and reimbursements drawn by lawmakers may not be unusually high in India by global standards, but two points have been agitating the people in recent times: the power enjoyed by legislators to fix their own salaries and the loss suffered by the exchequer as day after day is lost to parliamentary logjam, resulting in MPs drawing daily allowances through whole sessions during which no business is transacted. In this backdrop, the proposal of the Ministry of Parliamentary Affairs to establish an independent, three-member commission to fix the pay and allowances of parliamentarians is a sign that the government and the elected members themselves are sensitive to growing concern about the public expenditure incurred in their name. The proposal is on the agenda of the All-India Whips’ Conference to be held in Visakhapatnam, and may form the basis for future legislation to de-link members of the legislature from the process of fixing their emoluments. Members of Parliament currently draw a monthly salary of Rs. 50,000, a constituency allowance of Rs. 45,000 and a sumptuary allowance of Rs. 15,000. They may also hire secretarial assistance for Rs. 30,000. They are entitled to daily allowances and travel concessions besides other perquisites. The present levels of pay and allowances, however, have not been revised since 2010.
If an independent body is created for the purpose, India will be following the example of the United Kingdom, where an Independent Parliamentary Standards Authority has been created by law to oversee and regulate ‘business costs’ or the expenditure incurred by lawmakers in their parliamentary functions, and fix their pay and pension. Such a mechanism may help put an end to criticism, and sometimes public outcry, over legislators rewarding themselves with pay hikes and additional allowances from time to time. In a country where public life is associated in the popular imagination with unbridled greed, and parliamentary representation is seen as a means to amass wealth, it will be tempting to wonder why lawmakers need a salary at all, or, looking at legislative work often coming to a standstill, to question the present pay structure or the need for regular revision. However, payment for legislative work is an important element in attracting public-spirited citizens to participative democracy. As a general principle, pay ought not to be the primary attraction for elective office, nor the privileges and perquisites that come with it. At the same time, it cannot be so low as to be a disincentive to the public for entering the legislature. An independent pay panel for parliamentarians is surely a welcome proposal.

The Indian Navy is all set to welcome INS Kochi

The Indian Navy is all set to welcome INS Kochi, a second ship of the Kolkata-class Guided Missile Destroyer, in its contingent on September 30.
Here are the top features of The indigenously-designed ship.
1INS Kochi weighs over 7500 tonnes, spanning over 164 meters in length and 17 meters at the bean. It is propelled by four gas turbines and designed to achieve speeds in excess of 30 knots.
2The ship is loaded with long-range BrahMos surface-to- surface missile.
3It has 76 mm Super Rapid Gun Mount (SRGM) and AK 630 Close In Weapon System (CIWS) designed to take on air and surface targets.
4INS Kochi's anti-submarine arsenal consists of Indigenous Rocket Launchers (IRL), Indigenous Twin-tube Torpedo Launchers (ITTL) and bow-mounted new generation HUMSA Sonar Dome.
5It is equipped to operate two Sea King or Chetak helicopters.

28 September 2015

Centre forms expert committee to review civil services exam pattern

An expert committee has been formed by the government to examine various issues related to age relaxation, eligibility, syllabus and pattern of the civil services examination to select IAS and IPS officers.
“The committee will look into all aspects of civil services examination,” Union Minister Jitendra Singh said on Sunday.
Based on the report of the committee, further changes in the civil services exam pattern would be considered with the primary objective of providing a level playing field to aspirants from diverse streams like mathematics, engineering, medicine and humanities, he said. Till such time as the recommendations of the committee were received and the government subsequently took a decision, the General Studies Paper-II (also known as CSAT) in the preliminary examination would remain a qualifying paper, with the minimum qualifying marks fixed at 33 per cent.
Path-breaking
Meanwhile, the government’s decision taken last year to exclude the English portion, accounting for 22 marks in the General Studies Paper-II, from tabulation continued to remain in force, he told PTI here.
The panel has been formed as a follow-up to a decision taken by the government in May this year, said Mr. Singh, Minister of State for Personnel, Public Grievances and Pensions.
The panel would be headed by the former Chhattisgarh cadre IAS officer B.S. Baswan and consist of leading academicians, technocrats and senior bureaucrats, officials said.
Mr. Singh recalled that soon after the Narendra Modi government took over on May 26, 2014, it was confronted with the demands from across the country for revisiting the pattern and syllabus of the civil services examination.
It was being alleged that the present syllabus and pattern tended to benefit students from mathematics and engineering backgrounds, he said.
The decision to revise the civil services exam pattern was path-breaking and was aimed at achieving the basic objective of ensuring that the best and the most deserving got the opportunity to become a part of the administrative set up of rapidly developing 21st century India.
The civil services examination is conducted annually in three stages — preliminary, main and interview. — PTI



B.S. Baswan (IAS)
Shri B.S. Baswan (IAS)
Director, IIPA. Former Secretary, Sec & Hr Edu, MHRD
Currently Director, Indian Institute of Planning & Administration and Former Secretary, Department of Secondary and Higher Education, MHRD, Govt. of India.

Educated in various prestigious institutions in Indian and Abroad - Eaton House Preparatory School, London. The Doon School, Dehradun St. Stephen's College, Delhi Elphinstone College, Bombay Victoria University, Manchester (UK) Banff School of Advanced Management, Canada and Fellow in the Victoria University, Manchester (UK) 1976-77 for a post graduate programme on Public Administration Training Methodology

After training in the National Academy of Administration (Mussoorie) he served for Govt. of M.P. and Govt. of India under various capacities/positions.
Assistant Collector (Under Trg.) Bilaspur (M.P.) - 1967 to 1969; Sub-Divisional Officer & Sub-Divisional Magistrate at Korba, Mungeli and Jashpur, Addl. Excise Commissioner (MP), Gwalior; Addl. Excise Commissioner (MP), Gwalior, Collector & District Magistrate, Rajgarh.

Some of the key positions in the Govt.: Director, Lalbahadur Shastri National Academy of Administration, Mussoorie; Commissioner, Higher Education, Govt. of M.P., Director, Institute of Secretariat Training and Management, Govt of India; Joint Secretary(Training), Ministry of Personnel, Govt. of India, DFID/World Bank Consultant for Forest Policy – 1999; Secretary, National Commission for Minorities, Govt of India; Chairman, National Pharmaceutical Pricing Authority (Ministry of Chemicals and Petrochemicals), Secretary, Ministry of Tribal Affairs, Govt. of India, Secretary, Ministry of Social Justice& Empowerment, Govt of India; and finally he retired as Education Secretary, Government of India

After post retirement he also served as Fellow, Singapore Institute of Arbitrators / Academic work, and  as Senior Consultant, Planning Commission, Govt. of India.

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