26 April 2015

National ‪#‎SupercomputingMission

CCEA approves the National Supercomputing Mission The Cabinet Committee on Economic Affairs approved the launch of the National Supercomputing Mission (NSM) on March 25, 2015. It will be jointly implemented by the Department of Science and Technology and the Department of Electronics and Information Technology at an estimated cost of Rs 4,500 crore over a period of seven years. 22 The NSM has been conceptualised in response to the increasing computing demands of the scientific and academic sectors in the country.

 It aims to:  Install a vast supercomputing grid comprising of around 70 high-performance computing facilities,
 Professionally train human resources for meeting challenges in the development of applications,
  Provide qualitative and quantitative improvement in research and development (R&D) and higher education, in the disciplines of science and technology
,  Enable comparability to countries advanced in supercomputing such as the US, Japan, China, etc. Supercomputers will also be networked on the National Supercomputing grid over the National Knowledge Network, which is a programme connecting academic institutions and R&D labs over a high speed network. These institutions as well as departments and ministries of the government will use supercomputing facilities and develop applications of national relevance.

Cabinet approves approach and key components of #eKranti: #NeGP 2.0

Cabinet approves approach and key components of e-Kranti: NeGP 2.0

The Union Cabinet approved the approach and key components of the e-Kranti or National eGovernance Plan (NeGP) 2.0 on March 25, 2015. This programme will be implemented by the Department of Electronics and Information Technology under the Ministry of Communications and Information Technology. 21 E-Kranti is one of the components of the Digital India programme.
 The aim of the programme is to deliver all government services electronically to citizens, at affordable costs, while ensuring efficiency and transparency. The first NeGP (launched in 2006) had revealed several implementation issues. The e-Kranti programme is being launched to improve delivery of government services such as e-education, ehealthcare, etc.

Some key objectives are to:
 Redefine NeGP with outcome oriented eGovernance initiatives,  Enhance portfolio of citizen centric services,
  Ensure optimum usage of core Information and Communication Technology (ICT), and
  Leverage emerging technologies. Some of e-Kranti‟s key principles include providing ICT infrastructure on demand, cloud by default, fast tracking approvals, National GeoSpatial Information System, etc. The programme management structure approved for Digital India would be used for monitoring the implementation of e-Kranti as well.

Cabinet gives approval for utilization of stranded gas based generation capacity

Cabinet gives approval for utilization of stranded gas based generation capacity The Cabinet Committee on Economic Affairs gave its approval to a policy to revive and improve utilization of gas based power generation capacity in the country.18 This capacity has been under-utilized due to shortfall in the production of domestic natural gas in the country. The policy will create a mechanism through which Regasified Liquified Natural Gas (RLNG) will be imported to supply to stranded gas plants so that they can generate power. Under this mechanism, the central and state government will exempt the imported RLNG from certain taxes and levies. Gas transporters and re-gasification terminals will reduce their transportation tariff, marketing margin and regasification charges on RLNG. The central government has also proposed to provide support to Discoms from the Power System Development Fund (PSDF) through a transparent reverse ebidding process. With the discovery of domestic natural gas in the Krishna Godavari river basin, the availability of natural gas in the country was expected to increase. This led to the setting up of several gas based power plants. However, the supply of domestic gas to power plants from the river basin started declining in 2012 and completely stopped in March 2013. Since then, these gas based power plants have been under-utilized or not operating. This new mechanism is expected to improve the supply of natural gas to these plants. 

The #Insurance Laws (Amendment) Bill, 2015 passed by Parliament

The Insurance Laws (Amendment) Bill, 2015 was passed by Parliament on March 12, 2015.4 The Bill replaced an Ordinance which was promulgated in December 2014. Key features of the Bill include:
  Foreign Shareholding: The composite foreign equity investment cap of 49% in Indian companies should be inclusive of all forms of foreign direct investment and foreign portfolio investments.
  Capital Requirements: In addition to defining a health insurance business, the Bill states that a company engaged exclusively in the health insurance business cannot register unless it has a paid up equity capital of Rs 100 crore. Additionally, a provision has been introduced stating that a foreign reinsurer has to have net owned funds of at least Rs 5,000 crore in order to register the insurance company.
  Appeals: According to the Act, the government can appoint an officer to ensure compliance of capital requirements by a general or life insurer. This decision can be appealed in the High Court. The Bill states that the appointment can be made by IRDA, and that this decision can be appealed in the Securities Appellate Tribunal.

Bill related to regulation and #taxation of undisclosed foreign income introduced

The Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015 was introduced in the Lok Sabha on March 20, 2015, by the Finance Minister, Mr. Arun Jaitley. 6 The Bill will apply to Indian citizens and seeks to replace the Income Tax Act, 1961 for the taxation of foreign income. It penalizes the concealment of income, and provides for criminal liability for attempting to evade tax in relation to foreign income. Key provisions of the Bill include: 
 Tax rate: A flat rate of 30 per cent tax would apply to undisclosed foreign income or assets. No exemption, deduction or set off of any carried forward losses (as provided under the Income Tax Act, 1961) would apply. 
 One - time compliance opportunity: A one-time compliance opportunity to persons who have any undisclosed foreign assets will be provided for a limited period. Such persons would be permitted to file a declaration before a tax authority, and pay a penalty.
  Prosecution and penalty for offences: - Willful tax evasion: The punishment for willful attempt to evade tax in relation to foreign income or assets would be rigorous imprisonment from three to 10 years, and a fine. The penalty for nondisclosure of income would be equal to three times the amount of tax payable, in addition to tax payable at 30%. - Failure to furnish returns: If a person fails to furnish a return in respect of foreign assets or income, he would be liable for rigorous imprisonment of six months to seven years. Further, a penalty of Rs 10 lakh would apply. This would also apply to cases where the person has filed a return of income, but not disclosed his foreign assets.

Land, development and democracy

India cannot continue with a pattern of industry that yields so few jobs but has such a large ecological footprint. Neither can it be excited by the urban nightmares that its cities are today. The land law debate must be the occasion to talk about these key national agendas

The current debate on the land law is important because it affords us a chance to reflect more deeply on the nature of India’s development process and the experience of democracy for a majority of our citizens. I see the 2013 land law as part of a response — highly belated in my view — to the perception of millions of our people that while India’s economy was booming over the last two decades, they were not part of the growth story.
Indeed, many people feel that development has happened at their cost. Official estimates place the number of people displaced due to development projects since Independence at 60 million, less than a third of whom have been properly resettled. Most of the displaced are the assetless rural poor, marginal farmers, poor fisherfolk and quarry workers. Around 40 per cent of them are Adivasis and 20 per cent Dalits. Official statistics testify that on all indicators of development, Dalits and Adivasis have been the worst off groups. Already at the bottom of the development pyramid, being deprived of their land and livelihoods has completely pauperised them, forcing many to move and live in subhuman conditions in our metros. The last two decades have also seen unprecedented agrarian distress, with more than two lakh farmers committing suicide, as per the National Crime Records Bureau. This is something that had never happened before in Indian history.
A sense of hurt
It is in this backdrop that we need to understand the heightened sensitivities and palpable anger over forcible land acquisition. Given that 90 per cent of our coal, more than 50 per cent of most minerals, and prospective dam sites are mainly in Adivasi regions, there has been, and is likely to be, continuing tension over issues of land acquisition. Through these tensions, not only has a question mark been placed over our development strategy, the delicate fabric of Indian democracy has become terribly frayed at the edges. In the remote Adivasi heartlands of India, people feel such a deep and abiding sense of hurt, alienation and cynicism that they have allowed themselves to be helplessly drawn into a terrible vortex of violence and counter-violence, even when they know in their heart of hearts that it will lead to their own destruction.
The 2013 land law tried to reach out to these people, by undoing a draconian colonial Act more suited to a 19th century empire than to a 21st century vibrant democracy. At the heart of the 2013 law was the provision of seeking the consent of those whose lands were to be acquired and of caring for those whose livelihoods would be destroyed in the process. Undoing these provisions is a virtual resurrection of undiluted powers of “eminent domain”, which the 1894 law conferred on the state.
Listening to the farmer
I do not dispute the fact that there can be many situations where land is needed for a development project that could actually benefit those whose lands are being acquired. What could be the possible harm in seeking the prior, informed consent of these people, after making the effort of explaining to them how they would stand to benefit? There are those who argue that farmers would be better off giving up farming. Indeed, they say farmers do not want to farm any more. Why would these farmers conceivably say no if we were to propose more attractive and tangible alternative options to them in return for their land? Is it not for farmers to assess whether the project will actually be of benefit to them and whether the recompense offered to them is a fair bargain? And allow them to be parties in working out what could be regarded as a fair deal for all? But all this will happen only if we are willing to talk to farmers and listen to them, who, I dare say, based on my experience of listening to them for 25 years, have a great deal to teach us.
Importance of SIA
This is the essence of Social Impact Assessment (SIA), which was again at the heart of the 2013 law. SIA is an instrument meant to assess the positive and negative impacts of the project and also to assess whether the objectives of the proposed project could not be achieved in some other manner, especially by acquiring significantly less fertile, multi-cropped land, a crucial requirement of national food security. When we look back at the history of land acquisition in India, we find it riddled with instances of far too much land being acquired and not being put to use. Just one look at the huge amounts of unused land in possession of many of our universities today would make you see the point. And as a recent study by the Comptroller and Auditor General (CAG) reveals, of the over 60,000 hectares of land acquired for Special Economic Zones (SEZs), from 2006 to 2013, around 53 per cent has not been put to any use. Just because it was possible to bully uninformed village people, we continued to do so.
SIA is an attempt to check these kinds of malpractices. It is also a way of making sure that land acquisition is not an easy way for the real estate mafia to make a quick buck in the name of development. The CAG study found many instances of land acquired at rates much below the market value being diverted to private builders in urban areas for commercial exploitation after denotification. The 2013 Act provided for the return of unused land to the original owner in cases where the land has not been used for the purposes for which it was acquired within five years. This is a key provision that should be retained.
SIA is an attempt to restore the declining faith in the democratic process, by reaching out to those who believe all decisions affecting their lives are made in distant, uncaring corridors of power, leaving them without any say. Incidentally, SIA is also best practice in development projects across the world. The 2013 law was a belated attempt to catch up with what other nations have been doing for long. Doing away with SIA would destroy a very powerful means of what is globally termed “conflict prevention”, a variety of activities aimed at anticipating and averting the outbreak of conflict.
Many people are rightly concerned about the slow pace of decision-making in development projects. They wish to do away with democracy-building, consent-seeking processes. But repeated experience shows that the attempt to push through projects without the consent of local people only results in massive delays, costing huge sums of money to the project developer. For an enlightened capitalist, it would be far more sensible and expeditious to conduct business in a peaceful, consensual atmosphere, rather than being repeatedly prevented from functioning due to endless strife and conflict. The 2013 law has proposed a time-bound SIA, which could be a powerful means of conflict prevention by taking local communities on board and making them integral partners in development. There are many instances of this across the world, as also in India.
Need for debate
The enactment of the 2013 law was a real struggle, with many, across partisan divides, fiercely opposing it. A key role in its passage was played by Parliament, which instilled the law with necessary balance. The extraordinary leadership provided by the present Speaker of the Lok Sabha was crucial in seeing the Act through with complete unanimity. Her sagacity and consensus-building skills, as Chair of the Parliamentary Standing Committee, helped reconcile conflicting arguments into a seamless whole.
It is the very same spirit that the nation seeks today from Parliament, for balance and compromise are the hallmarks of a democracy. This has not been an empty debate. All sides have had powerful points to make. All the concerns being expressed are genuine national concerns. The country needs industrialisation and urbanisation. But their specific forms need to be debated. Surely, we cannot continue with a pattern of industry that yields so few jobs, and one that has such a large ecological, especially water, footprint. We also cannot be excited by the urban nightmares that our cities are today. The debate on the land law is a great occasion to move the dialogue forward on these key national agendas. If we want to acquire the land of farmers to serve larger goals, surely the projects in which they are embodied must not be of the kinds that repeat the mistakes of the past. The people of this country, who are being asked to make sacrifices for the larger national good, must know and be convinced that what they give up will indeed serve a meaningful “public purpose” and not involve the injustices and malpractices of the past. That is why the consent and SIA clauses need to be retained in the land law that Parliament eventually passes. Let us not reduce it to a National Democratic Alliance (NDA) vs. United Progressive Alliance (UPA) issue. Let us hope Parliament will rise above narrow partisan politics and seize this opportunity to provide an appropriate response to the utterly tragic suicide of Gajendra Singh.

Ten things to know about the #GST Bill

The Goods and Services Tax is one of the main items on the finance agenda of the BJP government. Finance Minister Arun Jaitley has said that it can raise India’s GDP by one to two per cent.As the Lok Sabha takes up the GST Bill, here is your cheat sheet to the debate:
1Officially, the Constitution (One Hundred and Twenty-Second Amendment) Bill 2014.
2It was introduced in the Lok Sabha on December 19, 2014 by Finance Minister Arun Jaitley.
3The Bill seeks to amend the Constitution to introduce a goods and services tax (GST) which will subsumes various Central indirect taxes, including the Central Excise Duty, Countervailing Duty, Service Tax, etc. It also subsumes State value added tax (VAT), octroi and entry tax, luxury tax, etc.
4The Bill inserts a new Article in the Constitution make legislation on the taxation of goods and services a concurrent power of the Centre and the States.
5The Bill seeks to shift the restriction on States for taxing the sale or purchase of goods to the supply of goods or services.
6The Bill seeks to establish a GST Council tasked with optimising tax collection for goods and services by the State and Centre. The Council will consist of the Union Finance Minister (as Chairman), the Union Minister of State in charge of revenue or Finance, and the Minister in charge of Finance or Taxation or any other, nominated by each State government.
7The GST Council will be the body that decides which taxes levied by the Centre, States and local bodies will go into the GST; which goods and services will be subjected to GST; and the basis and the rates at which GST will be applied.
8Under the Bill, alcoholic liquor for human consumption is exempted from GST. Also, it will be up to the GST Council to decide when GST would be levied on various categories of fuel, including crude oil and petrol.
9The Centre will levy an additional one per cent tax on the supply of goods in the course of inter-State trade, which will go to the States for two years or till when the GST Council decides.
10Parliament can decide on compensating States for up to a five-year period if States incur losses by implementation of GST.

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