IAS Mains 2014

Contemporary Issues - V
Science & Environment

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67 Hi-Tech Agriculture
India is principally an agricultural country. Agriculture, with its allied sectors, is unques
tionably the largest livelihood provider in India. Most of the industries also depend upon the
sector for their raw materials.

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Indian agriculture has undergone rapid transformation in the past two decades. The policy
of globalization and liberalization has opened up new avenues for agricultural modernization.
This has not only led to commercialization and diversification, but also triggered various tech
nological and institutional innovations owing to investments from corporate entities.
From a net importing country, India is today consistently producing 250 million tonnes (MT)
of food grains, 100 MT of rice, 90 MT of wheat, 35 million bales of cotton, and more than 18
MT of pulses. India has emerged as a major player in the global agriculture market.
As predicted by the international forums, India will become the largest populated nation by
2028, even surpassing China. Then the amount of food produced today will be minimal to
handle the situation of population growth. Thus the biggest question arise Where will the food
come from? How will it be produced? Who will produce it?

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In line with the above questions the new government under Narendra Modi proposed the
idea of making the Indian agriculture hitech according to the changing times. It enables maxi
mum output on a small plot of land and is thus particularly important in countries with high
population density and limited land area.
Why agriculture need to be made hi-tech?
Until recently, the choice of technologies available to farmers was largely determined by the
need to increase production, profits and productivity. The main constraints were the availability
of capital, knowledge of how to use the technology and market risks risks that in many
countries policies were shielded by government policies. In the past, "good policy practices" was
therefore rather straightforward, relating primarily to increasing output and the aim of agricul
tural policies was to increase productivity in agriculture. Agricultural research and extension
services could concentrate, for example, on improving the productivity of small farms.
Now agriculture has to fulfil diverse objectives: it needs to be internationally competitive,
produce agricultural products of high quality while meeting sustainability goals. In order to
remain competitive, agricultural producers need rapid access to emerging technologies. Farmers
are faced with many more constraints and also more opportunities. In addition to being
profitable, they need to meet environmental standards and regulations, as well as deal with
direct and indirect consumer and lobby group pressures. They may also be flooded with infor
mation from various government and industry sources, that make choosing appropriate tech
nologies more difficult. Farmers also need to change their production and management practices
in response to agricultural policies that include environmental conditions.
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Thus hitech methods are needed to be inserted in agriculture practices so that sustainable
development may occur.
Innovations in mechanical technologies, including robots, computers, and improved trac
tors, plus innovations in the application of water, pesticides, and herbicides, are increasing
output, reducing labor needs, and cheapening production costs in whatever part of the world
they have been introduced.
Some hi-tech farming methods
a) Hydroponics
Hydroponics is when you grow plants using nutrient solutions in water without soil. The
roots may be in a nutrient solution only or with gravel, perlite, mineral wool, or coconut husk.
Advantages
No soil is needed for hydroponics.

The water stays in the system and can be reused thus, a lower water requirement.

It is possible to control the nutrition levels in their entirety thus, lower nutrition require
ments.

No nutrition pollution is released into the environment because of the controlled system.

Stable and high yields.

Pests and diseases are easier to get rid of than in soil because of the container's mobility.

Ease of harvesting.

No pesticide damage.

Disadvantages

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b) Aeroponics

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Without soil as a buffer, any failure to the hydroponic system leads to rapid plant death.
Other disadvantages include pathogen attacks such as dampoff due to Verticillium wilt caused
by the high moisture levels associated with hydroponics and over watering of soil based plants.
Also, many hydroponic plants require different fertilizers and containment systems.

Aeroponics is growing plants in an air/mist environment without soil. The roots of the
plants are in an enclosed area and are misted with a nutrient?rich water solution. The stem and
leaves are not enclosed. Growing plants in this kind of controlled environment also helps reduce
the threat of pests and disease and like hydroponic,conserves water and energy and allows for
rapid food production.
Air cultures optimize access to air for successful plant growth. Materials and devices which
hold and support the aeroponic grown plants must be devoid of disease or pathogens. A distinc
tion of a true aeroponic culture and apparatus is that it provides plant support features that are
minimal. Minimal contact between a plant and support structure allows for 100% of the plant
to be entirely in air. Longterm aeroponic cultivation requires the root systems to be free of
constraints surrounding the stem and root systems. Physical contact is minimized so that it does
not hinder natural growth and root expansion or access to pure water, air exchange and disease
free conditions.
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c)

Use of Robots

The Japanese are developing robots for the farm and have developed a robotized combine
harvester that senses the side of uncut grain and harvests it. When the operation is done, the
robot stops and waits for somebody to give it further direction.
The Israelis have long been using a robotized arm for fruit picking. The arms sense the ripe
fruit, cut it from the branch, and drop it into a waiting container.
Australia has developed a sheepshearing robot that senses the contours of the sheep, and
cuts the wool without harming the sheep or losing as much wool as human labor would.
Harvesting systems for crops such as flower bulbs, onions, potatoes, sweet potatoes, water
melons, dates, jojoba, peanuts, and chili peppers are designed and manufactured. Special sys
tems and methods for postharvest operations such as separation of clods and stones from
potatoes, weighing and sorting flower bulbs and corms according to size, hotwater washing
systems for fresh produce, accurate vibrating seizers, flower bunching systems, and length sort
ing are used to improve product quality and reduce labor

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d) Use of Sensors

Special sensors have been developed to record and monitor plant growthrate and deter
mine growing needs. The use of these sensors results in significant savings in water and fertil
izers, while improving production and quality.
Sensors can also be used for precision farming. Precision farming is defined as information
technology based, relatively better management system that identifies, procures, analyzes &
manages, natural variability amongst the fields & optimizes productivity, profitability, sustainability,
which protects the land resources.
It utilizes real time sensors and feedback control to major the desired properties onthego,
usually soil properties or crop characteristics and immediately use this signal to control the
variable rate applicator.

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Sensors developed for onthego real time measurement of soil properties have the potential
to provide benefits from increased density of measurements at a relatively low cost. A GPS
receiver and a data logger are used to record the position of each soil sample or measurement,
to generate a map which can be processed along with other layers of spatially variable informa
tion to control the variable rate applicator.
e) Laser-guided farm machinery

Tillage is not the only advantage. Using special ploughs with lasers to guide them, the
machines can install roughly one mile of continuousroll plastic drainage tile per hour. This is
many times the capacity of the old open ditch machines which are used to handset clay or
concrete tiles.
The larger tractor is also better for soil conservation. Because the tractors can complete three
or four processes in one fieldcrossingwhereas the smaller tractor would take, accordingly, three
or four crossingsthe wear on topsoil is reduced. The large models carry a notill drill, which can
apply as much as 2,000 pounds of packerwheel pressure per seed opener, while simultaneously
banding phosphates and nitrogen around the seed, and applying herbicides. The packer wheel
packs soil firmly around the seed, removing air pockets. The drill also applies liquid, gas, or dry
fertilizers.
There have also been new developments in sprayers improving chemical application to
crops. Some planters and field preparation machines now apply chemicals at the same time that
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they accomplish other field work. "Broadcast" methods of chemical spraying are almost a thing
of the past. Improvements in the allinone techniques include flotation tires that reduce impac
tion of soil.
f)

New irrigation methods

The amount of water used should be minimized. Technologies like drip irrigation, at its most
sophisticated, using microelectronic circuits to control irrigation, should be increased. Drip irri
gation is defined as the precise, slow application of water in the form of discrete or continuous
or tiny streams of miniature sprays through mechanical devices called emitters or applicators
located at selected points along water delivery lines.
The advantages of drip irrigation are:
Controlled application of water as per the needs of plants at low pressure to limited soil areas
(root zones).

2.

Water saving to the tune of 50 to 70 per cent by reducing the total evaporative surface,
reduction in runoff and controlling deep percolation losses.

3.

Soil erosion is minimal, due to no runoff water on surface.

4.

Weed growth is minimum.

5.

Water loss through transpiration is low.

6.

Development of surface crust and determination of surface soil structure is avoided. Soil
compaction is less.

7.

Limited soil wetting permits undisturbed cultural practices.

8.

It is possible to obtain better yield and quality of crops by controlling soil moistureair
nutrients level.

9.

We can save the fertilisers by monitoring the supply of nutrients as per the need of the crop.

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10. Improvements in biological fertility can be achieved by avoiding pollution.

The other modern technique of irrigation is known as sprinkler irrigation system. Sprinkler
irrigation system conveys water from the source through pipes under pressure to the field and
distributes over the field in the form of spray of 'rain like' droplets. It is also known as overhead
irrigation.
New lateralmove irrigation systems can travel across a field using a single pump to draw
water. The system covers rectangular plots far better than centerpivot systems, which may need
several pumps to cover the same area. Water is provided by an open ditch or a series of pipes
at one end or in the middle of the area. The system can irrigate a field 2 miles by 1 mile or larger.
Crops, chemicals and fertilizers can be applied with the same system.
g) Polyhouse method of cultivation
The polyhouses are constructed with the help of ultraviolet plastic sheets, so that they may
last for more than 5 years. The structure is covered with 1501 m thick plastic sheet. The structure
is prepared with the bamboos or iron pipes.
The crops grown under the polyhouse are safe from unfavourable environment and hail
storm, heavy rains or scorching sunshine, etc. Crops of the polyhouse can be saved from birds
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and other wild animals. The humidity of polyhouse is not adversely affected by evaporation
resulting in less requirement of water. In limited area of polyhouse, insects and pests control is
also easy and less expensive.
By adopting the modern technology of polyhouse, the difference in the demand and supply
of offseason vegetables and fruits etc. can be minimised. This facilitates in maintaining the
quality of the product also.
h) Post harvest technology

i)

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In the post harvest stage the basic requirement was to supply the markets with produce of
excellent appearance and free of decay. To achieve these objectives, advanced scientific tools in
physiology, chemistry, pathology, microbiology, entomology, molecular biology, proteomics,
genomics and the senses (taste and aroma) are utilizedThese disciplines are combined with
traditional preservation technologies, and with the development of novel treatments for process
ing, storage and transportation of fresh, dried and processed foods. Special efforts are devoted
to identifying and developing alternatives to chemical methods for the control of postharvest
pathogens and pests. These alternatives include the reinforcement of host resistance, biological
control and applications of physical treatments. Basic scientific research fields include the study
of leaf senescence, chilling injury, host pathogen interactions and programmed cell death.
Integrated Pest Management (IPM)

The protection of all crops in the country is based on the guiding principle of Integrated Pest
Management (IPM) as required by both the domestic and export markets. IPM focuses on reduc
tion of chemical pest control and protection of the environment.
In more practical terms, this means spraying only when necessary, preferring environment
friendly chemicals, and promoting the use of biological control in a variety of crops such as
avocado, mango, strawberry, pepper, tomato and citrus. A parallel supporting activity consists
of the wide adoption of pest monitoring and improved decision making on pest management and
control. The technical policy is to expand the area under IPM regime annually.
Krishi Vigyan Kendra (KVK) - the Knowledge Hub

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j)

Krishi Vigyan Kendra (Farm Science Centre) is an innovative institution of ICAR established
at district level. The first KVK was established during 1974 and has grown as a largest network
in the country with 611 KVKs during 2011. KVKs are funded by ICAR and administered by
ICAR institutes / SAUs /Deemed Universities / Nongovernment Organizations or State Depart
ment of Agriculture.
KVKs play a vital role in conducting on farm testings to identify location specific agricul
tural technologies and demonstrating the production potential of crops at farmers' fields through
frontline demonstrations. They also conduct need based training programmes for the benefit of
farmers and farm women, rural youths and extension personnel to update their knowledge and
skills and to orient them in the frontier areas of technology development.
KVKs are creating awareness about improved agricultural technologies through large num
ber of extension programmes. Critical and quality inputs like seeds, planting materials, organic
products, biofertilizers and livestock, piglet and poultry strains are produced by the KVKs and
made available to the farmers. Agricultural Knowledge and Resource Centres are set up at KVK
to support the initiatives of public, private and voluntary sectors at district level.
The KVKs are evolving as the future grass root level institutions for empowering the farming
community. KVKs have made dent and has become part of decentralized planning and imple
mentation instrument to achieve desired level of growth in agriculture and allied sector.
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But in India Agriculture is the single largest livelihood sources in India with nearly two
thirds of people depend on it.India has about 108 million hectares of rainfed area which consti
tute nearly 75% of the total 143 million hectares of arable land. Dry zone agriculture basically
belongs to these fragile, high risking and low productive agricultural ecosystem where crop
production becomes relatively difficult as it is mainly depends on rainfall. The annual amount
of rainfall is less than 75cm. It covers more than threefifth of Rajasthan and one fifth of Gujarat
and some areas of Punjab, Haryana, Maharashtra, Andhra Pradesh and Karnataka come under
dry lands.
Dry lands, besides being water deficient, are characterized by high evaporation rates, excep
tionally high day temperature during summer, low humidity and high run off and soil erosion.
The soils of such areas are often found to be saline and low in fertility. Thus the life of both
human being and cattle becomes difficult and insecure. Thus adoption of hitech agriculture is
low in India.

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Further Primitive Subsistence Farming is still practised in few pockets of India. Primitive
subsistence agriculture is practised on small patches of land with the help of primitive tools like
hoe, dao and digging sticks, and family/community labour. This type of farming depends upon
monsoon, natural fertility of the soil and suitability of other environmental conditions to the
crops grown. It is a 'slash and burn' agriculture. Farmers clear a patch of land and produce
cereals and other food crops to sustain their family. When the soil fertility decreases, the farmers
shift and clear a fresh patch of land for cultivation. This type of shifting allows Nature to
replenish the fertility of the soil through natural processes; land productivity in this type of
agriculture is low as the farmer does not use fertilisers or other modern inputs. It is known by
different names in different parts of the country.
The use of ICTs in most of agricultural implementations is gaining importance but there are
some challenges in implementation of ICT based services that need attention and requires a lot
of research. These are:
Lack of access to ICT tools.

Lack of understanding and awareness of the needs and challenges of small scale farmers

Lack of standardized approaches of ICT usage in national poverty reduction schemes.

Need of appropriate socio cultural issues to achieve the desired objectives.

Poor connectivity, low bandwidth, limited electricity, user driven information.

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Educating and catering to the information needs of farmers across nearly seven lakh villages
in India indeed sounds unrealistic as this would require immense financial investment. A one
time major investment in establishing communication technologies in the required places restricts
the government's objective of covering more people regularly because of insufficient power avail
ability in rural areas, poor infrastructure, illiteracy, non availability of timely relevant content,
nonintegration of services, poor advisory services and lack of localization, and in particular non
availability of agricultural information kiosks/ knowledge centers at the grass root level.
Moreover, farmers sometimes become averse to adopting technology as they think that it
might result in their losing their traditional methods of cropping practices. They simply do not
want to use such systems, even if the cost incurred is negligible. Therefore, the attitude and
mindset of farmers needs to be changed first.
It is also necessary to develop hitech based agricultural services along with a communica
tion backbone (such as a fiber optic network) in rural areas.
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68 Issues in National Population Register

The National Population Register (NPR) is a comprehensive identity database to be main
tained by the Registrar General and Census Commissioner of India , Ministry of Home Affairs,
Government of India (RGI).

What are the objectives of NPR?

The objective of creating this identity database is to help in better utilization and implemen
tation of the benefits and services under the government schemes, improve planning and security
in the country.

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The Government of India has initiated the creation of this database, by collecting specific
information of all usual residents in the country during the House listing and Housing Census
phase of Census 2011 during April 2010 to September 2010. It is planned that the collected
information of the Usual Residency (aged 5 and above) of 17 states and 2 UTs (External website
that opens in a new window) will now be digitized, and biometric data will be collected from
these residents for further integration.
What is the historical background behind the launch of NPR?

The National Population Register (NPR) Project goes back to the Kargil days, when after the
Kargil War, the committee headed by the late K Subrahmanyam flagged the need for colour
coded identity cards for citizens and noncitizens.
Rajasthan was the first state to attempt issuing ID cards for citizens, but in the absence of
an enabling legal framework, the initiative could not achieve much success. Following this, the
Citizenship Act 1955 was amended by Parliament in 2003 and provision to create a National
Register of Citizens was inserted in the Act. Pilot projects for developing the Register were
subsequently taken up and these went on till 2009.

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During the Pilots, it was realised how difficult a task it was to authenticate or determine
citizenship in rural areas, for women and among landless labourers, as these areas or groups
often have no documents to prove date and place of birth, identity and residence.
A Committee of Secretaries was formed to discuss modalities to be followed for the National
Population Register Project and its recommendations were referred to an empowered Group of
Ministers (eGoM) for final decisions which laid down the roadmap for the NPR project.

What is the legal backing for NPR?

The NPR is legally grounded in the provisions of the Citizenship Act, 1955.

The Citizenship Act 1955 was amended in 2004 by inserting Section 14A which provides
for the following:?
(1) The Central Government may compulsorily register every citizen of India and issue National
Identity Card.
(2) The Central Government may maintain a National Register of Indian Citizens and for that
purpose establish a National Registration Authority.
(3) On and from the date of commencement of the Citizenship (Amendment) Act, 2003, the
Registrar General, India, appointed under sub?section (1) of section 3 of the Registration of
Births and Deaths Act, 1969 shall act as the National Registration Authority and he shall
function as the Registrar General of Citizen Registration.
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(4) The Central Government may appoint such other officers and staff as may be required to
assist the Registrar General of Citizen Registration in discharging his functions and respon
sibilities.
(5) The procedure to be followed in compulsory registration of the citizens of in India shall be
such as may be prescribed.
It is mandatory for every usual resident in India to register in the NPR as per Section 14A
of the Citizenship Act, 1955, as amended in 2004. A usual resident is defined for the purposes
of NPR as a person who has resided in a local area for the past 6 months or more or a person
who intends to reside in that area for the next 6 months or more.

What is the procedure for creating NPR?

In the NPR process, following details are being gathered by designated enumerators by
visiting each and every household: Details such as Name, Date of Birth, Sex, Present Address,
Permanent Address, Names of Father, Mother and Spouse etc.

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All usual residents will be eligible to be included irrespective of their Nationality. Each and
every household will be given an Acknowledgement Slip at the time of enumeration. The data
will then be entered into computers in the local language of the State as well as in English. Once
this database has been created, biometrics such as photograph, 10 fingerprints and Iris informa
tion will be added for all persons aged 15 years and above. This will be done by arranging camps
at every village and at the ward level in every town. Each household will be required to bring
the Acknowledgement Slip to such camps. Those who miss these camps will be given the oppor
tunity to present themselves at permanent NPR Centres to be set up at the Tehsil/Town level.

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In the next step, data will be printed out and displayed at prominent places within the
village and ward for the public to see. Objections will be sought and registered at this stage. Each
of these objections will then be enquired into by the local Revenue Department Officer and a
proper disposal given in writing. Persons aggrieved by such order have a right of appeal to the
Tehsildar and then to the District Collector. Once this process is over, the lists will be placed in
the Gram Sabha in villages and the Ward Committee in towns. Claims and Objections will be
received at this stage also and dealt with in the same manner as above.
The Gram Sabha/Ward Committee has to give its clearance or objection within a fixed
period of time after which it will be deemed that the lists have been cleared. The lists thus
authenticated will then be sent to the Unique Identity Authority of India (UIDAI) for dedupli
cation and issue of UIDNumbers. All duplicates will be eliminated at this stage based on com
parison of biometrics. Unique ID numbers will also be generated for every person. The cleaned
database along with the UID Number will then be sent back to the Office of the Registrar General
and Census Commissioner, India (ORG&CCI) and would form the National Population Register.
As the UID system works on the basis of biometric deduplication, in the case of persons of age
15 years and above (for whom biometrics is available), the UID Number will be available for each
individual. For those below the age of 15 years (for whom biometrics is not available), the UID
Number will be linked to the parent or guardian.

Which are the different agencies linked for formation of NPR?

Several government agencies are working towards the creation of this National Population
Register. These include the Registrar General of India , the Department of Electronics and Infor
mation Technology (DIETY), DOEACC Society , CSC eGovernance Services India Ltd and
Managed Service Providers (MSPs).
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Role of Department of Information Technology (DIT) in NPR

The Office of the Registrar General and Census Commissioner, India (ORG&CCI) has as
signed Department of Information Technology (DIT) with the responsibility of demographic data
digitization and biometric data collection in 17 states and 2 Union Territories of India.
DIT will undertake the following activities on behalf of the ORG&CCI to enable creation of
the National Population Register and facilitate the issuance of UID numbers to the usual resi
dents within the states assigned to it:
Digitization: The ORG&CCI will be responsible for scanning and Intelligent Character Rec
ognition (ICR) of the NPR Schedules collected from the field. Once ICR has been performed,
the scanned images will be handed over to DIT to complete manual data entry in two
languages, i.e. English Language and Local Language of the State.

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I.

II. Biometric Enrolment: Upon completion of manual data entry, DIT will capture biometric
data of all residents aged 5 years and above.
III. Data Consolidation and Delivery: DIT shall consolidate the captured data, including demo
graphic and biometric data, and deliver the same to ORG&CCI for further deduplication
and assignment of UID number by the UIDAI.
DIT recognizes that this assignment calls for organizations which have demonstrable expe
rience in demographic data digitization and enrolment and also requires significant financial
commitments from them in order to successfully execute it within the time schedule.

Role of National Institute of Electronics and Information Technology(NIELIT)

NIELIT (formerly DOEACC Society), an autonomous Scientific Society of the Department of

Information Technology, Ministry of Communications and Information Technology, Government
of India has presence at 23 locations throughout the country having its Headquarter at New
Delhi. The Society has immense capabilities for execution of eGovernance Projects.
For the purpose of ensuring complete coverage of the 17 States and 2 UTs, DIT plans to
divide the work of demographic data digitization and biometric data collection into urban and
rural areas. DIT intends to leverage the network of NIELIT (formerly DOEACC Society) which
has been designated as nodal agency for implementation of NPR Project. The overall responsi
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bility for completing the work of Demographic Data Digitization & Biometric Enrolment of the
assigned states/UTs in the urban and rural areas has been delegated to NIELIT (formerly
DOEACC Society) by DIT.

Role of CSC e-GOVERNANCE SERVICES INDIA LIMITED

As part of the existing CSC Scheme under NeGP, the responsibility of establishing CSCs
across various villages in all states and UT in the country lies with Service Centre Agencies
(SCAs). Under the CSC Scheme, all states and UT have been categorized into zones with each
SCA managing one or more zones across one or more states/UTs. There are 71 such zones in
the 17 States and 1 UT where NPR activities have to be carried out by DIT. For the rural areas,
DIT intends to leverage the network of Common Service Centres (CSCs).

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Since CSC eGOVERNANCE SERVICES INDIA LIMITED has been established as a com
pany under the Companies Act 1956 for the sole purpose of managing the CSC scheme under
NeGP, therefore, the overall responsibility of monitoring and supervising of the NPR project in
the rural areas of 17 states and 1 UT for demographic data digitization and biometric capturing
will be of CSC e GOVERNANCE SERVICES INDIA LIMITED.
What are the differences between the UID and NPR?

Voluntary vs. Mandatory: It is compulsory for all Indian residents to register with the NPR,
while registration with the UIDAI is considered voluntary. However, the NPR will store
individuals UID number with the NPR data and place it on the Resident Indian Card. In this
way and others, the UID number is becoming compulsory by various means.

Number vs. Register: UID will issue a number, while the NPR is the prelude to the National
Citizens Register. Thus, it is only a Register. Though earlier the MNIC card was implemented
along the coastal area, there has been no proposal to extend the MNIC to the whole country.
The smart card that is proposed under the NPR has only been raised for discussion, and
there has been no official decision to issue a card.

Statute vs. Bill: The enrollment of individuals for the NPR is legally backed by the Citizen
ship Act, except in relation to the collection of biometrics, while the UID as proposed a bill
which has not been passed for the legal backing of the scheme.

Authentication vs. Identification: The UID number will serve as an authenticator during
transactions. It can be adopted and made mandatory by any platform. The National Resident
Card will signify resident status and citizenship. It is unclear what circumstances the card
will be required for use in.

UIDAI vs. RGI: The UIDAI is responsible for enrolling individuals in the UID scheme, and
the RGI is responsible for enrolling individuals in the NPR scheme. It is important to note that
the UIDAI is located in the Planning Commission, but its status is unclear, as the NIC had
indicated that the data held is not being held by the government.

Door to door canvassing vs. center enrollment: Individuals will have to go to an enrollment
center and register for the UID, while the NPR will carry out part of the enrollment of
individuals through door to door canvassing. Note: Individuals will still have to go to centers
for enrolling their biometrics for the NPR scheme.

Prior documentation vs. census material: The UID will be based off of prior forms of
documentation and identification, while the NPR will be based off of census information.

Online vs. Offline: For authentication of an individual's UID number, the UID will require
mobile connectivity, while the NPR can perform offline verification of an individual's card.

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What is the controversy between the UID and NPR?

Effectiveness: There is controversy over which scheme would be more effective and appro
priate for different purposes. For example, the Ministry of Home Affairs has argued that the
NPR would be more suited for distributing subsidies than the UID, as the NPR has data
linking each individual to a household

Legality of sharing data: Both the legality of the UID and NPR collecting data and biomet
rics has been questioned. For example, it has been pointed out that the collection of biometric
information through the NPR, is beyond the scope of subordinate legislation. Especially as
this appears to be left only to guidelines. Collection of any information under the UID
scheme is being questioned as the Bill has not been approved by the Parliament.

Accuracy: The UIDAI's use of multiple registrars and enrolment agencies, the reliance on
'secondary information' via existing ID documents for enrollment in the UID, and the origi
nal plan to enroll individuals via the 'introducer' system has raised by Home Minister
Chidambaram in January 2012 about how accurate the data collected by the UID is that will
be collected. To this extent, the UIDAI has changed the introducer system to a 'verifier'
system. In this system, Government officials verify individuals and their documents prior to
enrolling them.

Biometrics: Though biometrics are mandatory for the UID scheme, according to information
on the NPR website, if an individual has already enrolled with the UID, they will not need
to provide their biometrics again for the NPR. Application of this standard has been haphaz
ard as some individuals have been required to provide biometrics for both the UID and the
NPR, and others have not been required to provide biometrics for the NPR.

What are the issues related to NPR in India?

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Issues related to use of biometrics:

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Both the UID and the NPR rely on biometrics as a way to identify individuals. Yet, many
concerns have been raised about the use of biometrics in terms of legality, effectiveness, and
accuracy of the technology. With regards to the accuracy and effectiveness of biometrics the
following concerns have been raised:

Biometrics are not infallible: Inaccuracies can arise from variations in individuals attributes
and inaccuracies in the technology.

Environment matters: An individual's biometrics can change in response to a number of

factors including age, environment, stress, activity, and illness.

Population size matters: Because biometrics have differing levels of stability the larger the
population is the higher the possibility for error is.

Technology matters: The accuracy of a biometric match also depends on the accuracy of the
technology used. Many aspects of biometric technology can change including: calibration,
sensors, and algorithms.

Spoofing: It is possible to spoof a fingerprint and fool a biometric reader

Issues related to Cost of project:

The estimated cost of the project is INR 6,600 crore or roughly $0.5 per capita one of the
cheapest in the world.
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Issues related to human rights violation

Information collected during formation of NPR may be misused if safeguards to maintain
privacy are inadequate. Though, the Supreme Court has included privacy as part of the Right
to Life, India does not have a specific law governing issues related to privacy. Also, the authority
is required to maintain details of every request for authentication and the response provided.
However, maximum duration for which such data has to be stored is not specified. Data that
has been recorded over a long duration of time may be misused for activities such as profiling
an individual's behaviour.
In view of NHRC's observation that UID/Aadhaar Number will lead to discrimination due
to its distinction between residents and citizens in the name of "delivery of various benefits and
services" and "weaker sections of society" is quite stark
Issues raised by standing committee on Finance

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The Committee listed concerns about the scheme raised by government bodies, including: (a)
duplication of efforts by agencies for collecting personal information such as NPR, MGNREGS,
BPL census, UIDAI, RSBY and Bank Smart Cards ; (b) efficacy of the introducer system; (c)
involvement of private agencies collecting information as a threat to national security; (d) uncer
tainties in the UIDAI revenue model; (e) merits of functioning of UIDAI; (f) necessity of collection
of iris image for enrolment; (g) involvement of several nodal appraising agencies; and (h) method
used for storing of data and its implications on privacy and security.
Issue related to updation of data

The challenges lie in developing a system which would update the database dynamically
and keep it live at all points of time. This would mean capturing every event of birth, death and
migration on a real time basis across the length and breadth of the country. Further the challenge
would be to communicate this information on an anytime anywhere basis. This would require
the establishment and maintenance of a massive ICT infrastructure throughout the country.
Creating such a vast database is a costly exercise.

Land Filling

GS

69

Growth of population, increasing urbanisation, rising standards of living due to technologi

cal innovations have contributed to an increase both in the quantity and variety of solid wastes
generated by industrial, mining, domestic and agricultural activities. Globally the estimated quantity
of wastes generation was 12 billion tonnes in the year 2002 of which 11 billion tonnes were
industrial wastes and 1.6 billion tonnes were municipal solid wastes (MSW). About 19 billion
tonnes of solid wastes are expected to be generated annually by the year 2025 [4]. Annually, Asia
alone generates 4.4 billion tonnes of solid wastes and MSW comprise 790 million tones (MT) of
which about 48 (6%) MT are generated in India [4,5]. By the year 2047, MSW generation in
India, is expected to reach 300 MT and land requirement for disposal of this waste would be
169.6 km2 as against which only 20.2 km2 were occupied in 1997 for management of 48 MT.
The major quantity of wastes generated from agricultural sources are sugarcane baggase,
paddy and wheat straw and husk, wastes of vegetables, food products, tea, oil production jute
?bre, groundnut shell, wooden mill waste, coconut husk, cotton stalk etc., [2,6,8]. The major
industrial nonhazardous inorganic solid wastes are coal combustion residues, bauxite red mud,
tailings from aluminum, iron, copper and zinc primary extraction processes. Generation of all
these inorganic industrial wastes in India is estimated to be 290 MT per annum. The heteroge
neous characteristics of the huge quantity of wastes generated lead to complexity in recycling
and utilisation.
[12]

A typical waste management system in India includes the following elements:

Waste generation and storage

Segregation, reuse, and recycling at the household level

Primary waste collection and transport to a transfer station or community bin

Street sweeping and cleaning of public places

Management of the transfer station or community bin

Secondary collection and transport to the waste disposal site

Waste disposal in landfills

In most of the Indian cities, the MSW collection, segregation, transportation, processing and
disposal is carried out by the respective municipal corporations and the state governments en
force regulatory policies.

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The major stakeholders in the management of Municipal Solid Waste include: (a) Ministry
of Environment and Forests (MoEF) (b) Ministry of Urban Development (MoUD) (c) Central and
State Pollution Control Boards (d) Department of Urban Development (e) State Level Nodal
Agency (f) Urban Local Bodies (g) Private Formal and informal Sector.
In some cities like Mumbai, Chennai, Delhi, Bengaluru, Hyderabad and Ahmedabad gar
bage disposal is done by Public Private Partnerships (PPPs). The private sector has been involved
in doortodoor collection of solid waste, street sweeping (in a limited way), secondary storage
and transportation and for treatment and disposal of waste. Urban Local Bodies spend around
Rs.500 to Rs.1500 per ton on solid waste management of which, 6070% of the amount is on
collection alone, 20% 30% on transportation, but hardly any fund is spent on treatment and
disposal of waste.
In India Land filling process is done to handle solid waste management.

GS

"Land filling" means disposal of residual solid wastes on land in a facility designed with
protective measures against pollution of ground water, surface water and air fugitive dust, wind
blown litter, bad odour, fire hazard, bird menace, pests or rodents, greenhouse gas emissions,
slope instability and erosion;
(a) Landfilling are done for the following types of waste:
(i) Comingled waste (mixed waste) not found suitable for waste processing;
(ii) Preprocessing and postprocessing rejects from waste processing sites;
(iii) Nonhazardous waste not being processed or recycled.
(b) Landfilling will usually not be done for the following waste streams in the municipal
solid waste:
(i) Biowaste/garden waste;
(ii) Dry recyclables.
Landfills minimise the harmful impact of solid waste on the environment by the following
mechanism (a) isolation of waste through containment; (b) elimination of polluting pathways; (c)
controlled collection and treatment of products of physical, chemical and biological changes
within a waste dump both liquids and gases; and (d) environmental monitoring till the waste
becomes stable.
[13]

Concerns related to land filling process:

(a) Leaching of toxins
A major problem arising from landfills is the discharge of leachate which is formed by water
passing through the tip and thus becoming contaminated with various organic and inorganic
pollutants. This subsequent movement of the leachate into the surrounding soil, ground water or
surface water could lead to severe pollution problems. The mechanisms by which contaminants
are leached out of the waste in a landfill is given below:
(i) Primary Leaching
Dissolution of soluble salts or soluble organic material that exists in the original fill leads to
primary leaching. The dissolved organic material such as humic acids produces a brown colour
in the leachate.
(ii) Biodegradation of Complex Organic Molecules

(iii) Chemical Reduction

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Much of the original organic material in the fill has low solubility but the biodegradation of
this material tends to produce more soluble end products such as simple organic acids and
alcohols. The nitrogen present in the original organic material is converted into ammonia in
the leachate.

A landfill quickly becomes anaerobic, thus becoming a chemically reducing environment

where ferric salts will be reduced to ferrous salts. Ferrous salts are more soluble and thus iron
leaches from the landfill. Another means how contaminants leach is via the sulphate in the tip
may be biochemically reduced to sulphides, although this may lead to evolution of small quan
tities of hydrogen sulphide, the sulphide will remain in the landfill as highly insoluble metal
sulphides.
(iv) Washed out Fines and Colloids

GS

Suspended solids and turbidity may be present in the leachate due to the washout of fine
solid material from the tip and this is our fourth method how contaminants leach. Therefore,
leachate contains a range of organic and inorganic material that has been washed out of the fill.
(b) Atmospheric Effects

According to the Environmental Protection Agency, the methane produced by the rotting
organic matter in unmanaged landfills is 20 times more effective than carbon dioxide at trapping
heat from the sun. Not only does methane get produced by the various forms of rotting organic
matter that find their way into landfills, but household cleaning chemicals often make their way
here as well. The mixture of chemicals like bleach and ammonia in landfills can produce toxic
gases that can significantly impact the quality of air in the vicinity of the landfill.
Aside from the various types of gases that can be created by these landfills, dust and other
forms of nonchemical contaminants can make their way into the atmosphere. This contributes
further to the air quality issue that plagues modern landfills.
(c) Ground Water Pollution
The key environmental problem as a result of landfills is groundwater pollution from leachates
(the liquid that drains or 'leaches' from a landfill). Although they intended to protect human
beings from toxins, due to natural deterioration the protective barriers only delay the inevitable.
When a new municipal landfill is proposed, advocates of the project always emphasize that "no
hazardous wastes will enter the landfill". However several studies have shown that even though
[14]

municipal landfills may not legally receive "hazardous" wastes, the leachate they produce is as
dangerous as leachate from hazardous waste landfills.
The major issue caused with landfill leachates is the leakage of a large number of toxins into
fresh water waterways, which ultimately end up in our homes as drinking water or water for
everyday use. Since landfills are most often located in and around large bodies of fresh water or
in swamps, the pollution often goes undetected. The compounds submerge to the ground, to the
ground water, and inevitably to our dinner tables. The pollution is also severely harmful to
animal and plant life.
Groundwater contamination may result from leakage of very small amounts of leachate.
TCE is a carcinogen typically found in landfill leachate. It would take less than 4 drops of TCE
mixed with the water in an average swimming pool (20,000 gallons) to render the water un
drinkable. Some surveys conducted have shown that 82% of the landfills have leaks and up to
41% of the landfills had a leak area of more than one square foot. EPA sponsored research shows
that burying household garbage in the ground poisoned the ground water. The EPA has stressed
that, even with the double liner landfills, the probability of leaking is very high.

(d) Impact on human health

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Hyderabad is a major Indian City with a population of more than six million and the extent
of solid waste generated from the City is estimated to be 2000 to 2500 tonnes per day. The solid
wastes generated in Hyderabad metropolitan area are majorly disposed of as land fill in low
lying areas. There has been a serious concern about the contamination of soils, ground and
surface waters when the wastes are, thus, disposed.

Studies have shown possible increased risks of certain types of cancer, including bladder,
brain and leukemia, among people who live near landfills. Further, a study by researchers at the
London School of Hygiene and Tropical Medicine also found that babies born to mothers who
live near landfills have a greater risk of birth defects. There was a significantly overall increased
risk of neuraltube defects, malformations of the cardiac septa (holeintheheart), and malforma
tions of the great arteries and veins in residents near the landfill sites in our study.

GS

And, a recent study found that living near a landfill could expose residents to chemicals that
can reduce immune system function and lead to an increased risk of infections.
The health risks associated with illegal dumping are significant for ragpickers and residents
living nearby. Areas used for illegal dumping may be easily accessible to people, especially
children, who are vulnerable to the physical (protruding nails or sharp edges) and chemical
(harmful fluids or dust) hazards posed by wastes. As opposed to children living in clean areas,
the study also found that "children living near to waste sites, whether landfills or contaminated
bodies of water, are hospitalized more frequently with acute respiratory infections.
Rodents, insects, and other vermin attracted to open dumpsites may also pose health risks.
Dumpsites with scrap tires provide an ideal breeding ground for mosquitoes, which can multiply
100 times faster than normal in the warm stagnant water standing in scrap tire casings. Severe
illnesses, including encephalitis and dengue fever, have been attributed to diseasecarrying mos
quitoes originating from scrap tire piles.
The government is taking several measures for waste management in urban areas. These are
discussed below:

The Ministry of Environment & Forests, Government of India, has notified the 'Municipal
Solid Waste (Management and Handling) Rules, 2000' which has specific directives to the
urban local bodies for proper and scientific management of municipal solid waste.
[15]

The Ministry of Urban Development has published a Manual on Municipal Solid Waste
Management in May, 2000 to assist ULBs in management of municipal solid waste.

A Task Force set up by Ministry of Urban Development in March, 2003, has furnished its
report on "Integrated Plant Nutrient Management".

A Pilot project on Solid Waste Management and Drainage scheme in Ten selected airfield
towns is being implemented at a total cost of Rs.130.67 crores. Six projects have been
completed/commissioned and four projects are at various stages of completion.

Under the Urban Infrastructure Governance (UIG) and Urban Infrastructure Development
Scheme for Small & Medium Towns (UIDSSMT) 41 and 51 number of solid waste manage
ment projects have been approved at an estimated cost of Rs.2236.01 crores and
Rs.327.02
crores respectively. The projects are at different stages of implementation.

Under the 10% lumpsum scheme for solid waste management in the North East Region
including Sikkim, five projects have been approved since the year 200102.

A Task Force on Waste to Energy WTE projects has been constituted by the Planning Com
mission in June, 2013 to examine the technological aspects of WTE projects. Model Profile/
Scheme for Public Private Partnership (PPP) projects based on WTE will be prepared by
Department of Economic Affairs, Ministry of Finance and full scale project be taken up by
the Ministry of Urban Development in consultation with MNRE only after the Expert Com
mittee setup by the Planning Commission gives its recommendations. The Ministry of New
and Renewable Energy (MNRE) is the nodal Ministry for promoting WastetoEnergy projects
(WTE projects). MNRE formulated "Programme on Energy Recovery from Municipal Solid
Waste for Settingup of 5 Pilot Projects" in the cities of Bengaluru (1 no.), Hyderabad (1 no.),
New Delhi (2 nos.) and Pune (1 no.).

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GS

The weaknesses of the existing system of solid waste management are: (i) the professional
and managerial capacities of the municipal bodies are limited and this is more pronounced in
case of smaller cities; (ii) no charges are levied for garbage collection or disposal, nor are there
any incentives for reducing garbage generation or recycling waste;(iii) no separate costing is done
for this function; (iv) indiscriminate use of plastic bags and goods; (v) recourse to modern
technology is rare and; (vi) segregation of garbage at the source is not enforced. Thus Indian
waste management system is starved of resources to tackle the increasing demands associated
with growing urbanisation. Due to budgetary constraints, inadequate equipment and poor plan
ning, housetohouse collection is very rare in India, particularly in certain lowincome areas
where waste is not collected at all. It is estimated that upto 3040 percent of disposed solid wastes
are left uncollected. The areas, which are not serviced, are left with clogged sewers and litter
which create serious health problems for the resident population.

70

Special Category Status to States

The concept of a special category state was first introduced in 1969 when the 5th Finance
Commission sought to provide certain disadvantaged states with preferential treatment in the
form of central assistance and tax breaks. Initially three states Assam, Nagaland and Jammu &
Kashmir were granted special status but since then eight more have been included (Arunachal
Pradesh, Himachal Pradesh, Manipur, Meghalaya, Mizoram, Sikkim, Tripura and Uttarakhand).
The rationale for special status is that certain states, because of inherent features, have a low
resource base and cannot mobilize resources for development.
[16]

The criteria for granting special status are as follows:

Some of the features required for special status are: (i) hilly and difficult terrain; (ii) low
population density or sizeable share of tribal population; (iii) strategic location along borders
with neighbouring countries; (iv) economic and infrastructural backwardness; and (v) nonviable
nature of state finances. The decision to grant special category status lies with the National
Development Council, composed of the Prime Minster, Union Ministers, Chief Ministers and
members of the Planning Commission, who guide and review the work of the Planning Com
mission.

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The special category states have some distinct characteristics. They have international bound
aries, hilly terrains and have distinctly different socioeconomic developmental parameters. These
states have also geographical disadvantages in their effort for infrastructural development. Public
expenditure plays a significant role in the Gross State Domestic Product of the states. The states
in the NorthEast are also late starters in development. In view of the above problems, central
government sanctions 90 percent in the form of grants in plan assistance to the states in special
category. The most important prescription for special category states is interest free loan with
rationalization of public expenditure based on growth enhancing sectoral allocation of resources.
Gadgil formula for granting of special status:

Up to 3rd Five Year Plan (FYP) [196166] and during Plan Holiday (196669), allocation of
Central Plan Assistance was schematic and no formula was in use. The central assistance pro
vided for in the first three plans and annual plans of 19661969 lacked objectivity in its formu
lation and did not lead to equal and balanced growth in the states. The National Development
Council (NDC) approved the following formula:
Special Category states like Assam, Jammu and Kashmir and Nagaland were given prefer
ence. Their needs should first be met out of the total pool of Central assistance.

2.

The remaining balance of the Central assistance should be distributed among the remaining
States on the basis of the following criteria:

60 per cent on the basis of population;

10 per cent on the basis of tax effort, determined on the basis of individual State's per capita
tax receipts as percentage of the State's per capita income;

10 per cent on the basis of per capita State income, assistance going only to States whose per
capita incomes are below the national average;

10 per cent on the basis of spillover into the Fourth Plan of major continuing irrigation and
power projects;

10 per cent for special problems of individual States.

GS

1.

Reasoning behind the given weights:

i.

Population

In a country like India population acts as an apt measure to represent the requirements of
the people because a major portion of the population lives below the poverty line. This propo
sition was also supported by the empirical data which showed a negative correlation between
population of states and their per capita income.
[17]

ii. Tax effort

This is an important factor to measure the potential of the state as far as its own resources
are concerned. This relative measure incentivizes the states to undertake measures to increase
their own potential through various tax measures.
iii. State per capita income
A problem regarding unequal development amongst the states was faced in the earlier plans
because of larger states with their large plans were able to get a larger share of resources from
the centre. This led to increased inequalities amongst the states. Therefore, to make the distribu
tion fairer to the smaller states with a lesser than national per capita average income were given
extra share in the resources.
iv. Special Problems

v.

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This factor was introduced so as to provide enough resources to states to overcome problems
like droughts, famines etc. In the absence of this share, such states would have suffered huge
losses because of these problems and the implementation of their plans could have been hin
dered. This was a discretionary element in the formula which required proper scrutiny of the
states situation by the Finance Commission.
Irrigation and power projects

These projects have been in the process of implementation before the fourth plan was
formulated. They needed extra resources for the successful completion of these projects.

GS

Later the formula was modified on the eve of the formulation of the Sixth Plan. The 10
percent indicator for ongoing power and irrigation projects was dropped and the share of per
capita income was increased to 20 percent, to be distributed to those states whose per capita
incomes were below the national average. The modified Gadgil formula continued for the Sixth
and the Seventh Plans. Compared to the allocations in the Fourth and Fifth Plans, the allocations
during the Sixth and the Seventh Plans show a definite shift in favour of the poorer states. All
the low income states, except Tamil Nadu, received Plan assistance higher than the average
income of the 14 states taken into consideration at the time. This can certainly be attributed to
the higher weightage given to per capita income as per the modification. Per capita income
serves as a suitable proxy for changes in the economy. If the states are ranked according to their
per capita income as well as their per capita Plan assistance and the rank correlation coefficient
is worked out, it should give a fair idea of the effectiveness of the modified Gadgil Formula in
terms of progressivity.
Due to reservations of State Governments on revision, a Committee under Shri Pranab
Mukherjee, then Deputy Chairman, Planning Commission was constituted to evolve a suitable
formula. The suggestions made by the Committee were considered by NDC in December 1991,
where following a consensus, the GadgilMukherjee Formula was adopted. It was made the basis
for allocation during 8th FYP (199297) and it has since been in use. After setting apart funds
required for (a) Externally Aided Projects and (b) Special Area Programme, 30% of the balance
of Central Assistance for State Plans is provided to the Special Category States. The remaining
amount is distributed among the nonSpecial Category States, as per GadgilMukherjee Formula.
[18]

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So current pattern of formula is:

Advantages of getting special category status

Preferential treatment in federal assistance and tax break

Significant excise duty concessions. Thus, these states attract large number of industrial
units to establish manufacturing facilities within their territory leading to their economy
flourishing

The special category states do not have a hard budget constraint as the central transfer is
high

These states avail themselves of the benefit of debt swapping and debt relief schemes (through
the enactment of Fiscal Responsibility and Budget Management Act) which facilitate reduc
tion of average annual rate of interest.

Significant 30% of the Centre's gross budget goes to the Special category state

In centrally sponsored schemes and external aid special category states get it in the ratio of
90% grants and 10% loans. For the rest of the states as per the recommendations of the 12th
Finance Commission, in case of centrally sponsored schemes only 70% central funding is
there in the form of grant. The rest of the states receive external aid in the exact ratio (of
grants and loans) in which it is received by the Center.

GS

Role of Planning Commission in granting special category status

The Planning Commission allocates funds to states through central assistance for state plans.
Central assistance can be broadly split into three components: Normal Central Assistance (NCA),
Additional Central Assistance (ACA) and Special Central Assistance. NCA, the main assistance
for state plans, is split to favour special category states: the 11 states get 30% of the total
assistance while the other states share the remaining 70%. The nature of the assistance also
varies for special category states; NCA is split into 90% grants and 10% loans for special category
states, while the ratio between grants and loans is 30:70 for other states.
For allocation among special category states, there are no explicit criteria for distribution
and funds are allocated on the basis of the state's plan size and previous plan expenditures.
Allocation between non special category states is determined by the Gadgil Mukherjee formula
which gives weight to population (60%), per capita income (25%), fiscal performance (7.5%) and
[19]

special problems (7.5%). However, as a proportion of total centrestate transfers NCA typically
accounts for a relatively small portion (around 5% of total transfers in 201112).
Special category states also receive specific assistance addressing features like hill areas,
tribal subplans and border areas. Beyond additional plan resources, special category states can
enjoy concessions in excise and customs duties, income tax rates and corporate tax rates as
determined by the government. The Planning Commission also allocates funds for ACA (assis
tance for externally aided projects and other specific project) and funds for Centrally Sponsored
Schemes (CSS). Statewise allocation of both ACA and CSS funds are prescribed by the centre.
Controversy related to granting special category status to Bihar
The latest dispute regarding this is the issue that whether Bihar should also be given the
status of special category state. The chief minister of Bihar Mr. Nitish Kumar has time and again
made this demand because Bihar is economically backward and also falls on Indo Nepal border.

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The Interministerial panel has been denying special status to Bihar on two grounds the first
is that it is not a hill state and the second its population density is not less. However Chief
Minister Nitish Kumar has been fighting for the rights of his state on the grounds of electricity
consumption which is lowest in the country. Electricity being the backbone for development of
any state and more power consumption indicates more prosperity, then Bihar lags far behind.
The Bihar Government argues that such status would enable increased Government expen
diture and hence would be able to attract private investment via the Keynesian 'crowding in'
mechanism, which is necessary to increase overall investment in the State. Currently the State
Government expenditure is a major component of the total expenditure in the State and hence
forms a major part of GSDP of Bihar.

GS

Whereas in contrary to it the Bihar model of development is now gaining outcomes. Earlier,
the Bihar police with a skeleton staff of largely unmotivated and poorly trained officers lacked
the ability to address these challenges and now Bihar's police force model of scientific investiga
tions and speedy trials are being adopted by India's top performing states. In Bihar a new crime
fighting model was adopted in 2006 and since then the number of murders has dropped by 13
percent, robberies have declined by 46 percent and kidnappings for ransom have dropped by 65
percent. Since 2006, 12,861 criminals have been sentenced to life in prison, while 33,588 others
have been sentenced for serious crimes, with a total of 80,199 convictions registered overall. In
the years before 2006, conviction rates were never even compiled.
Earlier because of lack of robust private sector in Bihar, the condition of infrastructure was
poor in state. Thanks to high external investment levels and human and financial capital flight
that people now are getting to see leading clothing brands and fine restaurant chains in huge
malls. In the past five years, Bihar has been on a high growth path, consistently recording
doubledigit rate: 12% in 200809; 11% (201011) and 13% (201112).
Following Bihar 5 other States namely Goa, Rajasthan, Jharkhand, Chhattisgarh and Odisha
have also been demanding this status due to extreme poverty, economic backwardness, non
compatible terrains and also the presence of Naxalites within the State territories due to which
no proper development has happened within the States.

71

Foreign Contribution Regulation Act and Issues

In 1976, at the height of the Emergency imposed by Indira Gandhi, India's Parliament
enacted a piece of legislation called the Foreign Contribution (Regulation) Act. It prohibited
political parties and 'organisations of a political nature', civil servants and judges, as also corre
spondents, columnists and editors/owners of registered newspapers and news broadcasting
organisations and even cartoonistsfrom receiving foreign contributions.
[20]

However, later concern was focused on the increasing influential role of NonGovernmental
Organisations (NGOs) as institutions of civil society in India.
Non Government Organisations (NGOs) and the voluntary sector in India have expanded
over the last few years, of which many are funded at least partially by foreign donors. Foreign
contribution increased from Rs 2,169 crore in 199596 to Rs 6,256 crore in 200405 (with a 23
per cent jump between 200304 and 200405).
These funds constitute about 0.6% of the gross annual inflow of foreign funds into India.
In comparison, the Indian corporate sector contributed about Rs 30,000 crore to Rs 35,000 crore
to charitable institutions in 200607.In addition, individuals also donate to these institutions; we
do not have reliable estimates of the total amount.
The data is listed as follows:
I.

A total of 38436 Associations have been registered under the Foreign Contribution (Regula
tion) Act up to 31.3.2010. During the year 200910, 2022 Associations were granted regis
tration and 388 Associations were granted prior permission to receive foreign contribution.

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II. 21508 Associations reported a total receipt of an amount of Rs.10, 337.59 crore as foreign
contribution.
III. Among the States and the Union Territories, the highest receipt of foreign contribution was
reported by Delhi (Rs. 1815.91 crore), followed by Tamil Nadu (Rs. 1663.31 crore) and
Andhra Pradesh (Rs. 1324.87 crore).
IV. Among the districts, the highest receipt of foreign contribution was reported by Chennai (Rs.
871.60 crore), followed by Bengaluru (Rs. 702.43 crore) and Mumbai (Rs. 606.63 crore).
V. The list of donor countries is headed by the USA (Rs. 3105.73 crore) followed by Germany
(Rs. 1046.30 crore) and UK (Rs. 1038.68 crore).

GS

VI. The list of foreign donors is topped by the Gospel For Asia Inc, USA (Rs. 232.71 crore)
followed by the Fundacion Vicente Ferrer, Barcelona, Spain (Rs.228.60 crore) and the World
Vision Global Centre, USA (Rs.197.62 crore).
VII. Among the Associations which reported receipt of foreign contribution, the highest amount
of foreign contribution was received by the World Vision of India, Chennai, Tamil Nadu
(Rs.208.94 crore), followed by the Rural Development Trust, Ananthapur, A.P. (Rs.151.31
crore) and Shri Sevasubramania Nadar Educational Charitable Trust, Chennai, T.N. (Rs.
94.28 crore).
VIII. The highest amount of foreign contribution was received and utilized for Establishment
Expenses (Rs. 1482.58 crore), followed by Rural Development (Rs. 944.30 crore), Welfare of
Children (Rs. 742.42 crore), Construction and Maintenance of school/college (Rs.630.78
crore) and Grant of Stipend/ scholarship/ assistance in cash and kind to poor/deserving
children (Rs. 454.70 crore).
Thus to control the flow of foreign fund the Foreign Contribution (Regulation) Act, 2010 has
come into force with effect from the 1st May, 2011. The prime objective of the Act is to regulate
the acceptance and utilization of foreign contribution and foreign hospitality by persons and
associations working in the important areas of national life.
Salient features of Act:

The central government has the power to prohibit any persons or organisations from accept
ing foreign contribution or hospitality if it is determined that such acceptance would likely
[21]

"affect prejudicially" (i) the sovereignty and integrity of India, (ii) public interest, (iii) freedom
or fairness of election to any legislature, (iv) friendly relations with any foreign State, or (v)
harmony between religious, racial, social, linguistic or regional groups, castes or communi
ties.
The focus of the Act is to ensure that the foreign contribution and foreign hospitality is not
utilized to affect or influence electoral politics, public servants, judges and other people
working the important areas of national life like journalists, printers and publishers of news
papers, etc. The Act also seeks to regulate flow of foreign funds to voluntary organizations
with the objective of preventing any possible diversion of such funds towards activities
detrimental to the national interest and to ensure that individuals and organizations may
function in a manner consistent with the values of the sovereign democratic republic.

Foreign funds received as fees for service, costs incurred for goods or services in the ordinary
course of business, and trade or commerce are excluded from the definition of foreign con
tribution.

Funding from the United Nations, the World Bank and the International Monetary Fund is
exempt from the requirements of the Bill. The central government can add other funders to
this exemption list through notification.

All persons or organisations who have a "definite cultural, economic, educational, religious
or social programme" (unless otherwise specified in this Act) must obtain a certificate of
registration from the central government in order to accept foreign contribution. In addition
to associations, societies and other organisations, the new Bill is applicable for individuals,
Hindu Undivided Families, and Section 25 Companies (notforprofit companies).

Provision has been made for inspection of accounts if the registered person or person to
whom prior permission has been granted fails to furnish or the intimation given is not in
accordance with law.

A new provision has been introduced to the effect that the assets of any person who has
become defunct shall be disposed of in such manner as may be, specified by the Central
Government.

A new provision has been introduced to the effect that any person, who knowingly gives
false intimation and seeks prior permission or registration by means of fraud, false represen
tation or concealment of material fact, shall, on conviction by Court, would be liable to
imprisonment for a term which may extend to six months or fine or with both.

Any person contravening the provisions of the Act shall be punishable with imprisonment
for a term which may extend to five years or with fine or with both.

Every person who receives foreign contribution under the Act shall submit a report, duly
certified by a chartered accountant, in the prescribed Form, accompanied by an income and
expenditure statement, receipt and payment account, and balance sheet for every financial
year beginning on the 1st day of April within nine months of the closure of the financial
year, to the Secretary to the Government of India, Ministry of Home Affairs, New Delhi. The
annual return in the prescribed Form shall reflect the foreign contribution received in the
exclusive bank account and include the details in respect of the funds transferred to other
bank accounts for utilisation. If the foreign contribution relates to articles or foreign securi
ties, the intimation shall be submitted in the prescribed Forms.

The Central Bureau of Investigation or any other Government investigating agency that
conducts any investigation under the Act shall furnish reports to the Central Government,

[22]

GS

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on a quarterly basis, indicating the status of each case that was entrusted to it, including
information regarding the case number, date of registration, date of filing charge sheet, court
before which it has been filed, progress of trial, date of judgment and the conclusion of each
case.

In case the foreign contribution is proposed to be transferred to a person who has not been
granted a certificate of registration or prior permission by the Central Government, the
person concerned may apply for permission to the Central Government to transfer a part of
the foreign contribution, not exceeding ten per cent, of the total value of the foreign contri
bution received. The application shall be countersigned by the District Magistrate having
jurisdiction in the place where the transferred funds are sought to be utilised. The District
Magistrate concerned shall take an appropriate decision in the matter within sixty days of
the receipt of such request from the person. The donor shall not transfer any foreign contri
bution until the Central Government has approved the transfer.

Definitions:
Foreign Source

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The Bill requires all voluntary organizations to register in order to receive foreign contribu
tion from a "foreign source". The definition of a foreign source includes all companies in which
majority shareholding is held by persons who are not Indian citizens. This would include a
number of companies such as ICICI Bank Ltd. and Infosys Technologies Ltd.

Foreign Hospitality

The Bill requires members of a Legislature, officebearers of a political party, judges, govern
ment servants or employees of any governmentcontrolled corporation or body to obtain prior
approval with the government before accepting any type of foreign hospitality (including staying
with foreigners on overseas trips). The definition of "foreign hospitality" exempts "purely casual"
offers from such prior permission. The Bill does not define "purely casual."

Speculative Business

Subsidiaries

GS

The Bill prohibits persons from using FCRA funds for "speculative business." The Bill does
not define "speculative business." (Incidentally, the Indian Trusts Act, 1882 lists the investments
permissible by a Trust).

The Bill defines "subsidiaries" as the meaning assigned in the Companies Act, 1956. That Act
defines a company as a subsidiary of another company if the latter controls the composition of
the former's board of directors or holds a majority of its equity share capital. This definition
cannot be applied to many entities in the voluntary sector as they may be registered as trusts or
associations, and may not have a "board of directors" or any "equity share capital."

Foreign funds and issues

Environmental policy is an area in which foreignfunded thinktanks have a significant
impact. The Centre for Science and Environment (CSE), headed by Sunita Narain with a gov
erning board that has Ela Bhatt, BG Verghese, Dr MS Swaminathan and Dr NC Saxena among
others, has received over Rs 67.7 crore in foreign funds between 2006 and 2012. The CSE's main
donors, according to FCRA records, include the Denmark based Dan Church Aid, Germany
based Evangelischer Entwicklungsdienst EV, Heinrich Boll Foundation and the Swedish Interna
tional Development Cooperation Agency. Other donors include the Commission of European
Communities and Government of India.
[23]

The other green thinktank with generous foreign contributions that works closely with the
Government is The Energy and Resources Institute (TERI). The International Bioenergy Summit
held in New Delhi was organised by TERI and sponsored by the Department of Biotechnology
(DBT). According to its FCRA filings, TERI, with a staff of over 900, has received about Rs 155.9
crore between 2006 and 2012 from a vast variety of donors.
In the field of health policy, one of the most influential thinktanks is the Public Health
Foundation of India (PHFI). Since it was founded in 2006, it has received a total of Rs 219 crore
in funds, its biggest foreign donor being the Bill and Melinda Gates Foundation and biggest
Indian donor being the Government of India. Other foreign donors, according to FCRA filings,
include the National Institutes of Health (of the US government), Welcome Trust, International
Development Research Centre and MacArthur Foundation.

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On matters of internet policy, the Centre for Internet and Society (CIS), a Bangalorebased
thinktank focused on internet governance and intellectual property issues, has been a member
of some key government committees, like the one under Justice AP Shah to study privacy laws
in India. The CIS also receives foreign funding. According to its website, it has received over Rs
8.3 crore in funds, a significant portion of it from foreign donors like the UKbased Kusuma
Trust, which was founded by Anurag Dikshit, an Indian businessman who made a fortune
selling his stake in a popular online gambling website. He eventually donated most of his wealth
to the Kusuma Trust, which funds various charities across the world.
In the human rights space, there is the famous Lawyers Collective, which, apart from its
human rights advocacy, also provides legal aid to members of disadvantaged communities.
Although this collective does not appear to work all that closely with the Government, it is
interesting to note that it was founded by Indira Jaising, who is currently one of the Centre's
Additional Solicitor Generals. Since 2006, according to its FCRA filings, the organisation has
received around Rs 21.8 crore in foreign funds from the Ford, Levi Strauss and Open Society
foundations and from the Campaign for Tobacco Free Kids, Swedish International Development
Cooperation Agency, among others.

GS

The above examples demonstrate the influence of foreign funded thinktanks on almost every
major aspect of Indian policy today, be it economic or environmental, related to public health or
internet governance.
For several thinktanks, it is often hard to figure out the nature of the legal entity through
which they conduct their activities. Since they enjoy tax benefits, they might also qualify as
'public authorities' under the Right to Information Act, 2005.
The FCRA does not cover national security issues regarding (a) all funds, whether sourced
from India or abroad, and (b) all entities, including forprofit companies. Foreign funds currently
received through FCRA are less than one per cent of all foreign funds entering the country. These
are also less than one fifth of domestic donations to charitable institutions. Under the current law
and the proposed Bill, there are loopholes for bypassing the FCRA requirements by channeling
the funds through commercial firms as consultant fees, exports, etc.
In recent times concerns have been raised that trusts do not spend adequate amounts on
their core objects. There isn't enough transparency in the administration of the trusts, resulting
in disproportionately high administrative expenses.
Establishment expenses consist of buying land, buildings, jeeps, setting up offices, mobiles,
laptops, cameras, salaries, consultancy fees, honorarium, and foreign travel etc., constituting
nearly 50 % of the expenses and in some cases as high as 70%. This goes against the grain of
service motto where the ultimate recipient is supposed to get the maximum. Now, such organi
zations even recruit "executives" from management institutions. Most of the top recipients are
[24]

Church or Church related organizations. They use the funds for service as well as religious
purposes.

Recent steps
The Centre has banned direct foreign funding to NGOs operating in India unless they fulfil
stringent regulatory norms and show compliance reports. This is seen as the beginning of a
process to block flow of foreign aid to NGOs, which, it perceives, are engaged in stalling devel
opmental activities in the country. As per this exercise, the Centre has cracked down on NGO
Greenpeace and placed on its radars thousands of other voluntary organisations receiving for
eign aid.
Further controls over trusts are introduced, providing that not more than 50% of the foreign
contribution received in a financial year by the trust shall be utilised to meet administrative
expenses. Administrative expenses exceeding 50% can be defrayed only with the prior approval
of the Central Government, which will prescribe the elements that will be included in the
administrative expenses and the manner in which such administrative expenses shall be calcu
lated.

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Further the Ministry of Home Affairs has directed the Reserve Bank of India to take prior
permission of the Home Ministry's Foreign Contribution Regulation Act (FCRA) Department
before clearing any foreign aid to Greenpeace from Greenpeace International and Climate Works.
Greenpeace International and Climate Works Foundation are the two principal international
contributors to Greenpeace India Society. The RBI has been asked to direct all banks on this
order. Foreign donations to the Greenpeace have been put on "prior category" list so that per
mission is taken before any money flows in for funding its activities.
There are NGOs, often funded from the United States and the Scandinavian countries,
which are not fully appreciative of the development challenges that our country faces. The IB
report had also recommended cancellation of permission given to Greenpeace for collecting funds
abroad besides reassessment of its tax compliance. The report has also listed another 12 foreign
nationals who have been associated with some NGOs in their campaign against coal mines,
power projects and Nuclear power plants.

Problem of Child Abuse in India due to Lack of

Awareness of Acts

GS

72

During a discussion on Child Abuse, UNICEF pointed out that though the Protection of
Children from Sexual Offences Act, 2012 equipped a state to deal effectively with cases of child
sexual abuse, there seemed to be limited awareness about it provisions.
According to UNICEF violence against children can be "physical and mental abuse and
injury, neglect or negligent treatment, exploitation and sexual abuse. Violence may take place in
homes, schools, orphanages, residential care facilities, on the streets, in the workplace, in prisons
and in places of detention." Such violence can affect the normal development of a child impairing
their mental, physical and social being. In extreme cases abuse of a child can result in death.
Child abuse has many forms: physical, emotional, sexual, neglect, and exploitation. Any of
these that are potentially or actually harmful to a child's health, survival, dignity and develop
ment are abuse.
According to statistics compiled by the Karnataka State Child Protection Society (under the
Directorate of Women and Child Development) between January 1 and August 31 2013, a
whopping 193 cases have been reported under the Protection of Children from Sexual Offenses
Act of 2012 in Karnataka alone. Those working in the field said much had to be done about the
lack of awareness on the Act.
[25]

Further according to a 2007 study on child abuse by the Union Ministry of Women and
Child Development, 20.9 per cent children in the country faced sexual abuse, while the corre
sponding figure was 17.2 per cent in West Bengal.
Highlights of the 'Protection of Children from Sexual Offences Act 2012':
The Act defines a child as any person below the age of 18 years and provides protection to
all children under the age of 18 years from the offences of sexual assault, sexual harassment
and pornography.

This is the first time that an Act has listed aspects of touch as well as non touch behaviour
(eg: photographing a child in a obscene manner) under the ambit of sexual offences.

The Act incorporates child friendly procedures for reporting, recording of evidence, investi
gation and trial of offences

The attempt to commit an offence under the Act has also been made liable for punishment
for upto half the punishment prescribed for the commission of the offence.

The Act also provides for punishment for abetment of the offence, which is the same as for
the commission of the offence. This would cover trafficking of children for sexual purposes.

For the more heinous offences of Penetrative Sexual Assault, Aggravated Penetrative Sexual
Assault, Sexual Assault and Aggravated Sexual Assault, the burden of proof is shifted on the
accused.

The media has been barred from disclosing the identity of the child without the permission
of the Special Court.

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Issues:

The police are not booking culprits under the act for lack of awareness.

There have been some reported cases of noncooperation from courts as well.

Incidents of child sexual abuse were on the rise in India with very few convictions in cases
which were reported.

Intrafamily abuse or abuse that takes place in institutions such as schools or government
homes has received minimal attention. This may be due to the structure of family in India
and the role children have in this structure. Children in India are often highly dependent on
their parents and elders; they continue to have submissive and obedient roles towards their
parents even after they have moved out of their parental home. This belief that parents and
family are the sole caretaker of the child has proved to have negative effects on child
protection laws and strategies.

GS

Awareness of various provisions of the law is important as it made even abetting such
sexual crime an offence and put the onus on offenders to prove themselves innocent. The gov
ernment would soon establish special courts to handle such cases.
Needed course of action:

[26]

Launch campaign to raise awareness on 'The role of the bystander in preventing child abuse'.
Studies conducted worldwide reveal that the child abuser banks on the psychology of the
bystander to continue undeterred. This leaves the child alone, mute and helpless in the hands
of the predator, while the adults at home, on a bus, in a school, or in a park look away and
remain silent.

Volunteers should visit nursing homes, hospitals and clinics of paediatricians to engage
medical personnel and parents in recognizing and addressing the emotional, mental and
physical health effects of child sexual abuse.

Poster campaign should run at schools, colleges, corporate houses and apartment complexes.

Make police more sensitize towards such cases.

Special courts should be made to handle the cases in child friendly atmosphere. Video
conferencing can be used as a method of conducting the proceedings.

Mains question:

Child abuse has impact on child's health, survival, dignity and development. What steps
should GOI take to handle the child sexual abuse issue?

Highlight the salient features of National Child Policy, 2013 which may lead to empower
ment of children?

Government planning to Connect More to P.I.Os

& N.R.Is

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73

After assuming office as Minister of Overseas Indian Affairs, Mrs Sushma Swaraj announced
that new government will try to connect more and more People of Indian Origin (PIO) and Non
Residential Indians (NRIs) abroad with India and in its economic process so that it will be
mutually beneficial for India.
Further, the Indian Missions abroad will be made more sensitized to the problems, issues
faced by Indians abroad.
Role played by POIs and NRIs to Indian economy:

GS

In the age of economy slowdown, India is passing through a bad phase and its monetary
condition is severely affected. Inflation rate is high and people are unable to manage their daily
life. In this context Indian government has great expectations from millions of Nonresident
Indians to resolve the crisis through making investments in India. More than 25% of India's
population of 1.03 Billion falls under the 'extreme poverty' group. Another 40% of the population
falls under the category of 'poverty' leaving around 30% as the 'urban middle class'. This 'urban
middle class' of around 300 million people have just started their consumer goods spending
spree. Though India has enough natural resource but has not enough capital to exploit them and
progress the economy. For this, India depends on external investments.
While NRIs generate earnings is estimated to be $250 billion and is one third of the GDP of
India. Thus, NRIs and POIs can contribute a lot to Indian economy and enhance its fiscal
growth.
The Reserve Bank of India has directed the Indian banks to attract NRI deposits and there
are numerous short and long term investment plan option for them. Besides, NRIs are encour
aged to establish business and educational institution in India. As a result of all this there is
greater involvement of NRIs in India.
Even though NRI's contribution is not visible but they are helping their country through
varied activities in India. Many reports reveal that NRI's are major source of Direct Foreign
Investment, market development (outsourcing), technology transfer, charity, tourism, political
contributions and more substantial flows of knowledge, in India.
[27]

The NRIs have came forward with several nongovernmental organizations in India helping
in array of developmental, educational and social projects. It has been observed that large
number of NRIs is actively taking part in several welfare programs in India. They have registered
many NGOs to encourage education, health care and developmental activities such as water
management, rural development and selfhelp programs etc. They are also assisting in social and
environmental problems in India.
Telecom and IT services are the biggest services exports from India, and in that period those
amounted to $49.6 billion so at $48.5 billion, remittances are almost as big as IT exports.
Steps taken to by GOI to improve conditions of Indians abroad:
The safety of Indians abroad is the major issue faced by Indian Government. GOI is taking
steps to improve the situation. These are:

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(i) Establishment of Indian Community Welfare Fund (ICWF) in the Indian Missions to provide
immediate relief to the Indian workers in need and distress.
(ii) Overseas Workers Resource Centre (OWRC) at New Delhi. This centre has 24x7 helpline and
walkin counseling centre to provide information and to handle workers problems. This
centre uses 8 Indian languages and has a toll free number.
(iii) Bilateral Social Security Agreements (SSA) for protection of the interests of Indian profession
als going abroad.
(iv) Indian Workers Resource Centre (IWRC) at Dubai for providing information to the Indian
workers and to handle their problems.

GS

(v) Wherever circumstances so demand, Indian government vigorously takes up the issue of
protections of its citizens abroad with the countries concerned. For instance, in the case of
attacks on Indian students in Australia, India had asked the Australian authorities to amend
their existing laws pertaining to universities, so that there could be an institutionalized
mechanism to ensure the safety of foreign students.
(vi) Ministry of Overseas Indian Affairs is implementing the eMigrate project that will provide
endtoend computerized solutions for all processes in the emigration system.
(vii)National awareness cum publicity campaigns are carried out regularly to create wider aware
ness among the general public, and particularly among the potential migrants, on the risks
of illegal migration and to safeguard against illegal practices by unauthorized intermediaries
and fraudulent recruiting agencies.
(viii) GOI has launched Mahatma Gandhi Pravasi suraksha Yojana to encourage and enable
overseas Indian workers having Emigration Check Required (ECR) passports going to ECR
countries, to (a) save for their return and resettlement and (b) save for their pension.
Mains Question:

Explain the role played by NRI/PIO in Indian economy and facilities provided by govern
ment to improve their contributions?

The issue of safety of Indians abroad is challenging. List out the issues in present programmes
and schemes and steps need to be taken to improve situation?

[28]

74

Mauritius to Provide Automatic Tax info Exchange

for India

Mauritius's Prime Minister Navin Ramgoolam attended BJP leader Narendra Modi's swear
ingin as Prime Minister. During the meet both the nations has agreed to step up the process of
revising tax treaty between two countries, as Mauritius is being used for money laundering
activities.
Further, Mauritius's PM stated that he would not allow anybody to abuse or misuse its
jurisdiction for any illicit activities.
Meanwhile, India and Mauritius have decided to have an innovative partnership to strengthen
their bilateral relations. In this regard, the Prime Minister's Office of both countries would set up
special cells for effective implementation of ideas.
Mauritius as source of FDI:

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Mauritius has been one of the biggest sources of FDI into India, which attracted inflows of
USD 77.77 billion FDI from that country between April 2000 and January 2014. This fiscal India
attracted USD 5.98 billion in FDI from Singapore, whereas it was USD 4.85 billion from Mauritius.

GS

Once known as the biggest gateway for flow of funds into India, Mauritius has slipped in
recent months to second position in terms of quantum of money being brought in by overseas
investors into Indian markets, as also in terms of funds coming through FDI route. In terms of
funds brought in by foreign institutional investors into the Indian equity and debt markets, the
US has overtaken Mauritius, while Singapore is now on top for FDI. The fund flow from
Mauritius declined amid concerns about suspected moneylaundering though the Indian Ocean
island nation, which has been consistently denying these allegations. The Foreign Direct Invest
ment inflows from Mauritius have also fallen sharply on fears of possible renegotiation of the
tax avoidance treaty between the two countries. Foreign investors are also said to be apprehen
sive that a renegotiated DTAA would eliminate the tax advantage which the Mauritius investors
enjoy, while there are also fears that they may lose tax benefit after introduction of GAAR
(General Anti Avoidance Rules) provisions, which seek to check tax avoidance by investors
routing their funds through tax havens, will come into effect from April 1, 2016 in India.
About Tax Information Exchange Agreement:
Globalization and the liberalization of economic activity has converted the private sector
into a world without borders. This creates a major problem for national tax authorities because
similar changes in their enforcement powers have not kept pace with industry. National tax
authorities continue to be constrained by national borders and collecting tax revenue has been
difficult. Thus, TIEAs are primarily designed for the exchange of information between those
states and jurisdictions that are denied full Double Tax Agreements, usually because they are
considered tax havens.
Typically a TIEA contains the following provisions:
(a) It provides for exchange of information that is "foreseeably relevant" to the administration
and enforcement of domestic tax laws on the Contracting Parties.
(b) The information provided under TIEA is protected by confidentiality obligations. Disclosure
can be made to courts or judicial forums only for the purpose of determination of the
taxation matter in question.
(c) Information requested may relate to a person who is not a resident of a Contracting Party.
[29]

(d) There is an obligation on part of requested Party to gather information if it is not in its
possession, notwithstanding that it does not itself need that information. Therefore, no "do
mestic interest" for tax purposes is required for the provision of information.
(e) Information is defined in an expansive manner to cover banking details, ownership details
of companies/persons/funds/trusts etc.
(f) Apart from exchange of information, representatives of one Party may be permitted to
conduct tax examinations in territory of another party including interviews of individuals
and examination of records.
Automatic exchange of information involves the systematic and periodic transmission of
"bulk" taxpayer information by the source country to the residence country concerning various
categories of income (e.g. dividends, interest, royalties, salaries, pensions, etc). It can provide
timely information on noncompliance where tax has been evaded either on an investment return
or the underlying capital sum even where tax administrations have had no previous indications
of noncompliance.

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Problems with Automatic exchange of information:

It produces huge quantities of data. Reports complained that some countries which receive
encrypted DVDs with client information do not even get round to asking for the decryption
key. And information is not necessarily helpful if the recipient still has to penetrate the web
of shell companies, trusts and foundations between the account and the beneficial owner.

The risk of misuse of information by corrupt administrations, or rogue government employ

ees, such as the sale of personal financial data to wouldbe kidnappers.

It caused concern among banks and fund managers. It raises big questions about data
privacy.

Compliance costs, mostly borne overseas are high.

Mains question:

75

GS

What are Tax Haven nations? Explain their impact on world economy?

Scrapping of GoMs and eGoMs: Benefits

The new government of India has abolished all the 30 ministerial groups (nine empowered
groups of ministers (EGOMs) and 21 groups of ministers (GOMs)), which were set up to take
decisions on various matters before bringing them for the cabinet's consideration.

What are GoMs and eGoMs?

GoMs are small groups of ministers that meet to resolve conflicting views within the council
of ministers. Decisions taken by the GoMs had to be approved by the cabinet. This tradition was
started by the Atal Bihari Vajpayeeled NDA government. The UPA government took this prac
tice a step further by setting up eGoMs. Recommendations by GoMs had to be approved by
cabinet while EGoMs were authorised to decide on their own. UPA 1 set up about 80 GoMs and
eGoMs, and UPA 2 took this figure to about 120.
Such ministerial panels were reported to have been formed whenever the Cabinet or its
Committees wanted to have further deliberations for resolution of various issues. From the
pricing of a stake sale in government companies to sanctioning of new Metro rail projects and
considering steps to curb corruption, GoMs and eGoMs were set up for a wide variety of eclectic
subjects.
[30]

The GoMs brought into play collective wisdom and institutional experience. It acted as a
single window clearance system. In the coalition era, GoMs and EGoMs did serve the purpose
for which they were set up. They decided several contentious issues, including the plan for
restructuring Air India, the amendments to strengthen India's antirape laws following the Delhi
gang rape, the allocation of natural gas to different industries and 2G spectrum pricing in the
aftermath of the 2G scam, among several other decisions. But they had also brought policy
paralysis in the system due to long deliberations. Telangana, for instance, was first referred to
a ministerial panel in 2004. Discussions continued till 2012.
Aftereffects
Now, ministries will directly decide on policy. Ministries and departments will process, at
their level, issues pending before the EGoMs and GoMs and take decisions. If ministries face
difficulty in deciding, the cabinet secretariat and prime minister's office will step in.

The move signals a new style of functioning in which PM will assert more authority instead
of delegating power to other cabinet colleagues. This move will reduce the dominance of
certain Ministers and ensure that everyone has a role and responsibility.

The move would lead to a better sense of transparency in governmental functioning, fast
track decisionmaking processes and increase accountability.

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The announcement is also in line with the Bharatiya Janata Party's mantra, of "minimum
government and maximum governance.
Mains question:

EGoMs and GoMs concept had overpowered cabinet system of parliamentary democracy.
Illustrate with examples.

How does scrapping of EGoMs and GoMs will bring transparency and swiftness in the
decision making?

Motor Accidents and Impact on Economy

GS

76

The Motor Vehicles Act consolidates the law relating to Motor Vehicles i.e. the law relating
to the Constitution, use and control of motor vehicles. The first enactment relating to motor
vehicles in India was the Indian Motor Vehicles Act 1914 which was subsequently replaced by
Motor Vehicles Act, 1939. The Act of 1939 had been amended several times (last in 2007) keeping
in view the changes in the transport technology, pattern of passenger and freight movements'
development of the road network in the country and particularly the improved techniques in the
motor vehicles management.
Under the law "Motor Vehicle" or "Vehicle" means any mechanically propelled vehicle
adapted for use upon roads whether the power of propulsion is transmitted thereto from an
external or internal source and includes a chassis to which a body has not been attached and
a trailer: but does not include a vehicle running upon fixed rails or a vehicle of a special type
adapted for use only in a factory or in any other enclosed premises or a vehicle having less than
4 where filled with engine capacity of not exceeding 25 cm3.
Socio-economic aspects of motor accidents:
Apart from the humanitarian aspects of road safety, the injuries and fatalities which occur
as a result of road accidents have serious implications for a country in both social and economic
terms.
[31]

The Working Group on Road Accidents, Injury Prevention and Control set up by the Plan
ning Commission in the year 2000 had assessed the social cost of road accidents in India at Rs.
55,000 crore which constituted about 3% of the Gross Domestic Product(GDP) of the country
in the year 19992000. Further, the world report on road traffic and injury prevention by World
Bank and WHO published in 2004, has estimated the cost of road crash injuries at roughly 1%
of Gross National Product (GNP) in low income countries, 1.5% in middle income countries and
2% in high income countries.
The criteria used for calculation are:
Medical Costs include emergency transport, medical, hospital, rehabilitation, mental health,
pharmaceutical, ancillary, and related treatment costs, as well as funeral/coroner expenses
for fatalities and administrative costs of processing medical payments to providers.

Other Resource Costs include police, fire, legal/court, and victim services (e.g., foster care,
child protective services), plus the costs of property damage or loss in injury incidents.

Work Loss Costs value productivity losses. They include victims' lost wages and the replace
ment cost of lost household work, as well as fringe benefits and the administrative costs of
processing compensation for lost earnings through litigation, insurance, or public welfare
programs like food stamps and Supplemental Security Income. As well as victim work losses
from death or permanent disability and from shortterm disability, this category includes
work losses by family and friends who care for sick children, travel delay for uninjured
travelers that results from transportation crashes and the injuries they cause, and employer
productivity losses caused by temporary or permanent worker absence (e.g. the cost of hiring
and training replacement workers).

Quality of life includes the value of pain, suffering, and quality of life loss to victims and their
families.

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Some facts related to road accidents:

GS

a) In India the accident faculties tend to be in the younger agegroups. The age profile of
accident victims will have implications on the economy of a country in terms of working
years lost.
b) India has a higher rate of road crashes than High income countries.
c)

Since cost of life is reflected in the per capita income of the country and it's GDP, the
proportion of costs due to loss of life should be similar in High income countries and Low
income countries.

d) As a proportion of per capita income, costs of similar levels of medical care are higher in Low
income countries as compared to those in High income countries.
e)

Bs Energy Conservation Actuse of a scarcity of good rehabilitation care facilities and lack of
aids for the disabled, road crash victims suffering permanent disability would suffer greater
lack of access and employment opportunities in LICs.

f)

Owing to lack of welfare functions provided by the state and health care facilities, families
of injury victims have to spend much more time looking after injury victims in LICs. This
causes greater time and economic losses overall.

When someone in a poor family is injured and is bed ridden at home or the hospital, the
whole family gets involved in the care of the patient. This result in the reallocation of labour of
all family members those on daily wages lose their income; children may not go to school; and
[32]

older family members may spend less time in the care of children and infants. The household has
to cope with the time and financial demands of the situation and this can have a permanent
affect on the health of children and infants in the family. This can be the result of loss of income,
less attention, worsening hygiene at home, etc.
Since a very large number of poor households depend on daily wages and temporary jobs,
don't have health insurance, or the assistance of social welfare schemes, a serious injury can
result in permanent reduction of income. In cases of prolonged treatment or death of the victim,
the family may end up selling most of their assets and land and getting trapped into longterm
indebtedness. Investment in treatment of a seriously ill family member stops only when all assets
get sold. A study from Thailand shows that 60% of involuntary land sales were to finance
treatment of a family member. Death of a male head of household creates a household headed
by a woman. Such families have to suffer serious social and economic hardships and can have
negative health effects on children.

SC
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It is clear that the outcome of a serious injury or death of a family member in poor com
munities has many longterm effects, socially, economically and psychologically on all the other
family members and the community. Many of these outcomes are permanent and soul destroying
for individuals and possibly for the larger community.
The effect of injury and death on the family structure, crushing of hopes and aspirations of
future generations, and the psychology of the community are just not factored in.
Issue of claims in motor accident

Motor Accidents Claims Tribunal MACT deals with matters related to compensation of
motor accidents victims or their next of kin .The Tribunal deal with claims relating to loss of life/
property and injury cases resulting from Motor Accidents. MACT Courts are presided over by
Judicial Officers from the State Higher Judicial Service. Now these Courts are under direct
supervision of the Hon'ble High Court of the respective state

GS

An application for compensation can be made by a person who has sustained the injury;
or by the owner of the property; or where death has resulted from the accident by all or any of
the legal representative of the deceased; or by any agent duly authorized by the person injured
or all or any of the legal representatives of the deceased, it should be made under the Act shall
be made, at the option of the claimant either to the claims tribunal having jurisdiction over the
area in which the accident occurred or to the claims tribunal with the local limits of whose
jurisdiction the defendant resides, and shall be in such form and contain such particulars as may
be prescribed; the application shall contain a separate statement to that effect immediately before
the signature of the applicant.
The Claim Tribunal may tackle the case of compensation by doing inquiry of that and also
adopt a summary procedure of a Civil Court for the purpose of taking evidence of compelling
the discovery and production of documents and material objects and for such other purposes as
may be prescribed; the claim tribunal shall be deemed to be a Civil Court.
Further any person aggrieved by an award of a Claims Tribunal may, within ninety days
from the date of the award, prefer an appeal to the High Court : Provided that no appeal by
the person who is required to pay any amount in terms of such award shall be entertained by
the High Court, unless he has deposited with it twentyfive thousand rupees of fifty per cent, of
the amount so awarded, whichever is less, in the manner directed by the High Court : Provided
further that the High Court may entertain the appeal after the expiry of the said period of ninety
days, if it is satisfied that the appellant was prevented by sufficient cause from preferring the
appeal in time.
[33]

But according to amendments in 2007, if the fault or negligence of the driver is established,
the court or Tribunal awards compensation by using the Second Schedule (based on average
annual income, age and life expectancy). The Bill replaces this mechanism, and proposes that
where the fault or negligence of the driver is established, the compensation shall be estimated by
the court or the Tribunal. However, no guidelines or framework for calculating compensation
have been provided. This could lead to a wide divergence across courts in compensation paid for
similar cases. The Supreme Court had given certain guidelines while pointing out some anoma
lies in the existing Schedule. However, since those sections of the Act are being replaced, the
applicability of the judgment to the proposed provision is unclear.
In cases where the driver's fault is not established, the Principal Act specifies the amount
of compensation. The Bill changes this method, and proposes to use a formula based on the
income of the victim multiplied by a factor (which is specified according to his age). This implies
that there is no upper limit on the quantum of compensation which may be awarded, even if
the driver can prove that he was not at fault.

SC
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The Bill also introduces a penalty for rash and negligent driving, along with a compensation
mechanism for victims of road accidents. Currently, the penalty prescribed under Section 279 of
the Indian Penal Code, 1860 is a fine of up to Rs 1,000 and/or imprisonment up to six months.
The Bill proposes a further fine of up to Rs 5,000 which will be deposited in the Solatium Fund.
Some countries prescribe penalties ranging from heavy fines to revocation of the license in
addition to prosecution for any injury or destruction to property.
Recommendations of Standing Committee on this issue:

The Standing Committee recommended that existing legislation should also be amended to
treat deaths caused by drunken driving as culpable homicide not amounting to murder.

The Committee recommends that in cases of simple injury with no permanent disability the
claimants should claim compensation within six months from the accident.

The Committee recommends that time limit of depositing the amount of award by the claims
tribunal should not be increased from 30 days to 60 days.

The Committee suggests that slab rates for over speeding should be formulated to include
every offence under the Act. Also, a new section should be added specifically for the usage
of mobile phones.

GS

Steps taken to reduce road accidents

The Ministry of RTH has taken steps to minimize road accidents in the country. The Gov
ernment has approved a National Road Safety Policy. This Policy outlines various policy mea
sures such as promoting awareness, establishing road safety information data base, encouraging
safer road infrastructure including application of intelligent transport, enforcement of safety laws
etc. The Government has constituted National Road Safety Council as the apex body to take
policy decisions in matters of road safety. The Ministry has requested all States/UTs for setting
up of State Road Safety Council and District Road Safety Committees.
The Ministry has adopted a multipronged strategy to address the issue of road safety based
on four E's of Road Safety that is Education, Enforcement, Engineering (roads as well as vehicles)
and Emergency care. Road safety has been made an integral part of road design at the planning
stage. Road Safety Audit of selected stretches of National Highways/Expressways adopted.
Driving training institutes being established, Tightening of safety standards of vehicles like hel
mets, seat belts, powersteering, rear view mirror and Publicity campaigns on road safety aware
ness.
[34]

Recommendations:
Most important method to bring down accidents is strict enforcement of speed limits. 90 %
of accidents can be avoided by strict enforcement of speed limits.

Heavy Penalty should be imposed on ALL those who cross speed limits. If this is strictly
implemented, nobody will dare to go at high speed

Existing speed limits should be brought down further.

Tamper proof speed controllers should be made mandatory for all heavy vehicles. New
heavy vehicles should have built in tamper proof speed controllers.

New gadgets are to be developed for collision prevention and should be fitted on all vehicle.
Research organizations should be asked to develop such gadgets on a war footing. For
example, gadgets can be developed to automatically slow down the vehicle, if safe distance
commensurate with the speed of the vehicle in front is not maintained. Gadgets can be
developed for warning the driver, if the driver sleeps.

Diving tests for issue of Driving license is to be made more stringent and foolproof.

Lower age limit for two wheeler and Heavy Vehicle license should be raised to 21.

Helmet should be made compulsory by law in all countries, OR impose a lower speed limit
for those who do not use helmet. Issue of Helmet should be made mandatory with the sale
of each two wheeler.

Existing traffic rules should be strictly enforced.

Law should be modified such that the person who makes the accident has to bear (say) 0
to 10 % of the insurance claims, depending on severity of negligence. Also the compensations
should be made very huge, making accidents unaffordable so that everyone will be very
vigilant.

Major accidents and accident prone areas should be analysed scientifically.

Speed should be restricted at accident prone areas.

License of those who are involved in accidents should be suspended immediately, at least
until they prove that they are not guilty.

GS

SC
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The strategy for ensuring road safety being multipronged, many government departments
share responsibility for road safety. Special arrangements are required to put in place to ensure
close coordination and accountability. For ensuring better coordination among key Government
agencies concerned with road safety including local government, all the State Governments have
been advised to constitute High Level Committees headed by the Chief Secretary to take stock
of the road safety scenario in their States and the measures required to be instituted at the State
level to reduce road accident fatalities. The States have been advised to prepare action plan on
road safety for their States. The States' annual action plan on road safety needs to set ambitious
but realistic targets for at least five years. It should have measurable outcomes and sufficient
funding to develop, implement, manage, monitor and evaluate actions. All the States/UTs have
been asked to identify a lead agency in the State and also set up Road Safety Fund at the State
level by earmarking 50% of the funds generated from fines on account of violation of traffic rules.
[35]

77

GHGs Emission Reduction Policy of India

The State of the Environment Report by the MoEF clubs the issues under five key challenges
faced by India, which are climate change (Box 12.3), food security, water security, energy secu
rity, and managing urbanization. Climate change is impacting the natural ecosystems and is
expected to have substantial adverse effects in India, mainly on agriculture on which 58 per cent
of the population still depends for livelihood, water storage in the Himalayan glaciers which are
the source of major rivers and groundwater recharge, sealevel rise, and threats to a long coast
line and habitations. Climate change will also cause increased frequency of extreme events such
as floods, and droughts. These in turn will impact India's food security problems and water
security.

SC
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As per the Second National Communication submitted by India to the UNFCCC, it is

projected that the annual mean surface air temperature rise by the end of the century ranges
from 3.5C to 4.3C whereas the sea level along the Indian coast has been rising at the rate of
about 1.3 mm/year on an average. These climate change projections are likely to impact human
health, agriculture, water resources, natural ecosystems, and biodiversity.
Wary of the threats imposed by climatechange and pressures on natural resources,
sustainability and environment are increasingly taking centrestage in the Indian policy domain.
India has been part of 94 multilateral environmental agreements. India has also voluntarily
agreed to reduce its emission intensity of its GDP by 2025 per cent over 2005 levels by 2020, and
emissions from the agriculture sector would not form part of the assessment of its emissions
intensity. Indian economy is already moving along a lower carbon and sustainable path in terms
of declining carbon intensity of its GDP which is expected to fall further through lower carbon
strategies. It is estimated that India's per capita emission in 2031 will still be lower than the global
per capita emission in 2005 (in 2031, India's per capita GHG emissions will be under 4 tonnes
of carbon dioxide equivalent (CO2 eq.) which is lower than the global per capita emissions of
4.22 tonnes of CO2eq. in 2005).

Domestic Policy adopted by India:

GS

The policies can be subdivided into three parts as Effortdefining policies, Supporting
measures policies and Implementation Policies.
a) Effort defining policies

India's Energy Conservation Act (S ENERGY CONSERVATION ACT), which passed in

2001, created the Bureau of Energy Efficiency (BEE) to identify large energy consumers in key
sectors, develop mandatory energy efficiency standards and monitor compliance. Bureau of
Energy Efficiency (BEE) was established in March 2002, as a statutory body by the Government
of India under the Energy Conservation Act 2001. Bureau of Energy Efficiency is responsible for
spearheading the improvement of energy efficiency of the economy through various regulatory
and promotional instruments. The primary goal of BEE is to reduce the energy intensity in the
Indian economy.
It coordinates with State level agencies and energy consumers to perform functions and
exercise powers that may be necessary for efficient use of energy and its conservation in India.
The broad objectives of BEE are as under:

To exert leadership and provide policy recommendation and direction to national energy
conservation and efficiency efforts and programs.

To coordinate energy efficiency and conservation policies and programs and take it to the
stakeholders.

[36]

To establish systems and procedures to measure, monitor and verify energy efficiency results
in individual sectors as well as at a macro level.

To leverage multilateral and bilateral and private sector support in implementation of

Energy Conservation Act and efficient use of energy and its conservation programs.

To demonstrate delivery of energy efficiency services as mandated in the EC bill through

privatepublic partnerships.

To interpret, plan and manage energy conservation programs as envisaged in the Energy
Conservation Act.

SC
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The 2010 amendment to the S ENERGY CONSERVATION ACT created PAT scheme as a
marketbased trading scheme enable industries to meet the mandatory energy efficiency stan
dards that had begun to be developed under the original S ENERGY CONSERVATION ACT.
PAT scheme is now India's main effortdefining policy. It is overseen by the BEE and was
introduced by the National Mission on Enhanced Energy Efficiency (NMEEE). It is a comprehen
sive policy that sets mandatory, specific targets for energy consumption for larger, energyinten
sive facilities. Seven of the eight sectors addressed in PAT scheme's initial phase are industrial.
They are aluminum, cement, chloralkali, fertilizer, iron and steel, pulp and paper, and textiles.
Within each of these sectors, specific targets are set for each plant, based off historical perfor
mance and benchmarks.

GS

PAT is a scheme for trading energyefficiency certificates in large energyintensive industries

under the National Mission for Enhanced Energy Efficiency. Identified industries are required to
improve their specific energy consumption (SEC) within the specified period of three years or
face penalty provisions. At the same time this mechanism facilitates efficient industries to trade
their additional certified energy savings (that go beyond the assigned target) with other desig
nated consumers who could use these certificates to comply with their SECreduction targets. In
the Twelfth Five Year Plan, the PAT scheme is likely to achieve about 15 million tonnes oil
equivalent of annual savings in coal, oil, gas, and electricity (including 6.686 million ton of oil
equivalent energy savings of first phase)
Similarly, the RPO is creating domestic markets for renewable energy through regulatory
interventions at state level. The RPO is the minimum level of renewable energy (out of total
consumption) the obligated entities (DISCOMs, Captive Power Plants, and Open Access Con
sumers) are entitled to purchase in the area of a distribution licensee. The obligation is mandated
by the State Electricity Regulatory Commission (SERC). Since the renewable energy sources are
not evenly spread across India, SERCs cannot specify a linear level of RPOs for all states.
Renewable Energy Certificates (RECs) under the RPO mechanism is an instrument that enables
the obligated entities to meet their Renewable Purchase Obligation by trading surplus or deficit
RECs among themselves with the owner of the REC being able to claim to have purchased
renewable energy.
Under PAT scheme, these major facilities (or 'designated consumers') can buy energy sav
ings which are sold as white certificates from other participants to meet their targets. This
scheme thereby creates a mechanism that ensures savings targets can be met in a cost effective
way. The first phase of trading runs until the end of 2015 and has goal of reducing CO2
emissions by 26 million tons.
b) Supporting measures policies
The costs of adaptation and mitigation are significant even for industrial sector and will
likely be higher in the future as initiatives are taken in line with the goals outlined.
[37]

The Indian government has implemented several supporting measures to help fulfill the
Energy Conservation Act provisions. Major industrial energy consumers must have energy audits
undertaken by an accredited auditor and designate an energy manager to report energy con
sumption annually. The Energy Conservation Act also created state level accreditation and
training agencies, which provide the institutional capacity for nationwide deployment of energy
auditor and manager requirements.
India's annual National Energy Conservation Awards, which began in 1991, also support
the Energy Conservation Act. They promote broad adoption of energy efficiency programs and
clean and innovative technologies. Companies from across a number of sectors are eligible and
entries are judged by government officials.

SC
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In 2011, a range of financial mechanisms was introduced. These mechanisms are adminis
tered by the Indian Renewable Energy Development Agency (IREDA). They promote renewable
energy, energy efficiency and conservation by extending financing and preferential loans for new
projects, key equipment and business development. IREDA also promotes and finances the de
livery of energy efficiency services and equipment, the implementation of demand side manage
ment (DSM) and the development of energy service companies (ESCOs). Loan conditions are
preferential compared to commercial loans.
The mission of IREDA is to promote, develop and extend financial assistance for renewable
energy and energy efficiency/conservation projects [1] [3]. The IREDA financial services include
direct project financing, equipment finance, business development finance, loans for manufactur
ing facilities of energy efficiency equipment, and loans to banks/financing institutions for on
lending.
Two specific financial mechanisms focused on venture capital and guarantees are also
administered by Energy Efficiency Services Limited (EESL), an organization established to facili
tate the market implementation of energy efficiency projects. The national energy efficiency
framework was established under the NMEEE and includes the Partial Risk Guarantee Fund
(PRGF) and the Venture Capital Fund for Energy Efficiency (VCFEE).

GS

The Partial Risk Guarantee Fund, provided under Framework for Energy Efficient Economic
Development of the National Mission for Enhanced Energy Efficiency, is a risk sharing mecha
nism, lowering the risk to the lender by substituting part of the risk of the borrower through
granting guarantees and ensuring repayment of part of the loan upon a default event. The PRGF
is a sharing mechanism to spread some of the risks commercial banks take on when providing
loans for energy efficiency projects.
Venture Capital Fund for Energy Efficiency, under Framework for Energy Efficient Eco
nomic Development of the National Mission on Enhanced Energy Efficiency, provides risk capital
support to energy efficiency investments in new technology, goods and services, etc.
This fund is a leveraging fund with a view to control private venture investments in energy
efficiency sector by identifying the possible coinvestment opportunities (not in competition with
other private funds) with other venture capitalists into energy efficiency projects & companies.
The fund allows private venture fund players to capitalize the transaction costs associated
with specific energy efficiency investments. It also helps to create the volume in energy efficiency
deal flow by the fund manager of the venture capital fund through advertising & soliciting
opportunities in energy efficiency area.
In 2010, a clean energy cess was introduced at the rate of INR50 per ton on all coal
produced or imported. Revenues from this tax are being channeled through the National Clean
Energy Fund (NCEF) for research and development on clean energy projects.
[38]

Recently, the CCEA has approved constitution of a 'National Clean Energy Fund' (NCEF).
The National Clean Energy Fund will be used for funding research and innovative projects in
clean energy technologies. Any project/scheme for innovative methods to adopt to clean energy
technology and research & development shall be eligible for funding under the NCEF. Such
projects may be:
(a) Sponsored by a Ministry/Department of the Government; and
(b) Submitted by individual/ consortium of organizations in the government/public sector/
private sector in the form of loan or viability gap funding, as the IMG deems fit on case to
case basis. Government assistance under the NCEF shall in no case exceed 40% of the total
project cost.
c)

Implementation Policies:

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The Bureau of Energy Efficiency supports energy management and auditing by providing
technical assistance as well as certification and training to auditors. Other tools on offer include
information on energy efficiency best practices for 'designated consumer' sectors, information on
monitoring and reporting protocols for pursuing PAT scheme compliance, and IREDA financing
guidelines. To support PAT scheme, the government has developed a baseline and allocation
system, established a trading platform, and set up an accreditation system for verifiers. The EESL
administers all white certificate trading.
Initiatives designed to improve the efficiency of energy use across sectors have been imple
mented. The program will include a series of mandated efficiency standards for vehicles, build
ings, and appliances; a marketbased mechanism to trade energyefficiency certificates; and other
mechanisms to finance efficiency efforts, such as tax exemptions and insurance funds.
The government has also floated a proposal to create a National Environmental Protection
Authority that would monitor and evaluate the implementation of environmental efforts in
India.

GS

World Resources Institute India, The Energy and Resources Institute, and the Confederation of Indian Industry have formally launched a voluntary initiative that will standardize
measurement and management of greenhouse gas emissions in India.
The voluntary initiative called the India Greenhouse Gas Program was made to promote
profitable, sustainable, and competitive business. Specifically, the main objective of the program is to help companies in the country monitor their progress towards voluntary reduction
goals consistently and credibly.
Under the program, companies will be provided with tools and technical assistance to
build inventories, indentify reduction opportunities, establish annual and long-term reduction
goals, and track their progress based on the most widely used emissions accounting and
reporting standard in the world, the GHG Protocol.
Low Carbon strategies in XII FYP
India's approach to a lowercarbon growth strategy explicitly recognizes that policies have
to be inclusive and differentiated across sectors according to national priorities, so as to lower the
transaction costs of implementing the policy, and conform with a nationally fair burdensharing
mechanism. An Expert Group on Low Carbon Strategies appointed by the Planning Commission
has outlined the lower carbon strategies for major potential carbon mitigation sectors:
(i) Power: On the supply side, adopt supercritical technologies in coalbased thermal power
plants; use gas in combined heat and power systems; invest in renewable technologies; and
develop hydropower in a sustainable manner. On the demand side, accelerate adoption of
[39]

superefficient electrical appliances through market and regulatory mechanisms; enhance

efficiency of agricultural pump sets and industrial equipment with better technology; mod
ernize transmission and distribution to bring technical and commercial losses down to world
average levels; universalize access to electricity; and accelerate powersector reforms.
(ii) Transport: Increase the share of rail in overall freight transport; improve the efficiency of rail
freight transport; make it price competitive by bringing down the levels of crosssubsidization
between freight and passenger transport; complete dedicated rail corridor; improve share
and efficiency of public transport system; and improve fuel efficiency of vehicles through
both marketbased and regulatory mechanisms.
(iii) Industry: Greenfield plants in the iron and steel and cement sectors adopt best available
technology; existing plants, particularly small and medium ones, modernize and adopt green
technology at an accelerated pace, with transparent financing mechanisms.
(iv) Buildings: Evolve and institutionalize green building codes at all levels of government.

78

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(v) Forestry: 'Green India Mission' to regenerate at least 4 million ha of degraded forest; increase
density of forest cover on 2 million ha of moderately dense forest; and overall increase the
density of forest and tree cover on 10 million ha of forest, waste, and community lands.

Child Labour in India

India is home to the largest child population in the world. Child Labour, as defined by the
International Labour Organization, refers to work that leads to the deprivation of one's child
hood and education opportunities. Effects include a loss of potential and dignity in self, which
is harmful to a child's physical and mental development. The term Child Labour is defined as
work that deprives children of their childhood, their potential and their dignity and that is
harmful to their physical and mental development.

GS

The definition of child as given under Child Labour (Prohibition and Regulation) Act of
1986 defines child means a person who has not completed his fourteen years of age so by this
definition the question of Child Labour is solved. The Union Cabinet has approved a proposal
for amending the Child Labour (Prohibition and Regulation) Act, 1986, to ban employment of
children aged up to 14 in any form of industry. It will be an offence to employ such children not
only in factories or industries but also in home or on farms, if their labour is meant to serve any
commercial interest. The Cabinet also approved another amendment to define those children
aged 1418 as "adolescents" and prohibit their employment in mines, explosive industries, chemi
cal and paint industries and other hazardous establishments. The government's decision is in line
with the convention of the International Labour Organisation (ILO), which prohibits any form
of child labour until the age of 14.
According to HAQ: Centre for child rights, child labour is highest among schedules tribes,
Muslims, schedule castes and OBC children. The persistence of child labour is due to the inef
ficiency of the law, administrative system and because it benefits employers who can reduce
general wage levels. HAQ argues that distinguishing between hazardous and non hazardous
employment is counterproductive to the elimination of child labour. Various growing concerns
have pushed children out of school and into employment such as forced displacement due to
development projects, Special Economic Zones; loss of jobs of parents in a slowdown, farmers'
suicide; armed conflict and high costs of health care. Girl children are often used in domestic
labour within their own homes. There is a lack of political will to actually see to the complete
ban of child labour.
[40]

Following are the incidences which can recognize as a Child Labour:

is mentally, physically, socially or morally dangerous and harmful to children; and

interferes with their schooling by:

I.

depriving them of the opportunity to attend school;

II. obliging them to leave school prematurely; or

III. requiring them to attempt to combine school attendance with excessively long and heavy
work.
Articles related to Child labour in India
Article 14 (No child below the age of 14 years shall be employed to work in any factory or
mine or engaged in any other danger employment.

2.

Article 39E ( The state shall direct its policy towards securing that the health and strength
of workers, men and women and the tender age of children are not abused and that they
are not forced by economic necessity to enter vocations unsuited to there are and strength.

3.

Article 39F (Children shall be given opportunities and facilities to develop in a healthy
manner and in conditions of freedom and dignity and that childhood and youth shall be
protected against moral and material abandonment.

4.

Article 45 ( The state shall endeavor to provide within a period of ten years from the
commencement of the constitution for free and compulsory education for all children until
they complete the age of fourteen years. The main legislative measures at the national level
are The Child Labour Prohibition and Regulation Act 1986 ant The Factories Act 1948 .

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1.

Causes of child labour in India

POVERTY:

GS

Poverty can be termed as the main reason for child labor in India. Though the country has
achieved commendable progress in industrialization, the benefits of the same have not been
effectively passed on to the lower strata of society. In order to keep costs down even large
companies employ unorganized workers through contractors who get uneducated and unskilled
and semiskilled people at very low wages.
This helps the industries to keep their labor costs down at the cost of the poor laborers. In
effect what happens is that the children of these poor unorganized laborers have to find some
work to help run the family. They cannot afford to go to school when they do not have food to
eat and when their other brethren go hungry. Hence children from such deprived families try
to work as domestic servants, or in factories who employ them and remain uneducated and
grow up that way becoming perennial victims of this vicious cycle or poverty and suppression.
HIGH COMPETITION FOR JOBS
The industrialists in India have been successful in taking advantage of this disadvantage
faced by job seekers. Due to high population the job seekers not in a position to bargain a higher
wage. As a result the poor remain poor working for low wages.
ILLETERACY AND LACK OF EDUCATION
Illiteracy is a situation when a person is not able to read and/or write. This is when the
person is not in a position to get even primary education. Lack of education is another aspect
which is a result of illiteracy and lack of information. An uneducated person is one who is
[41]

generally unaware of things which an average person is required to know. Such people are
normally unaware of their human rights and the rights of their children too. The children of such
people normally become child laborers around their homes.
IRRESPONSIBLE ATTITUDE OF EMPLOYERS
A general sense of irresponsibility towards society is seen the employers in India who are
least bothered as to how their employees survive. In spite of being aware of the high cost of living
and inflation they are least bothered and least ashamed to pay wages which are much below
sustenance levels. Also if the employers were responsible they in the first place would not employ
children at all.
The following are some of the situations in which children are engaged in work:
Agriculture Children working long hours and under severe hardships on the fields. They are
also exposed to the hazards of working with modern machinery and chemicals.

Hazardous Industries/ Occupations Like glass making, mining , construction , carpet weav
ing, zari making, fireworks and others as listed under the Child Labour Act.

Small industrial workshops and service establishments.

On the streets Rag pickers , porters ,vendors etc.

Domestic work Largely invisible and silent and hence face higher degree of exploitation and
abuse in the home of employees.

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The steps taken for eradication of Child Labour

Prevention:

GS

According to the Child Labor Prohibition and Regulation Act, children of any age may be
employed, provided employers adhere to restrictions, including a maximum 6hour workday
with a 1hour rest period, at least 1 day off per week, and no night or overtime work. The Child
Labor Prohibition and Regulation Act bars children under age 14 from 18 hazardous occupations
and 65 hazardous processes, such as handling pesticides, weaving carpets, breaking stones,
working in mines, and domestic service. The Factories Act bars children under age 14 from
working in factories. Employing children under age 14 in a hazardous occupation or process can
lead to fines and imprisonment. Additionally, the Government must either compensate the family
of the child or find employment for an adult member of the family. State governments also have
the authority to pass legislation establishing a minimum age for work. In 2012, the State of
Rajasthan passed legislation establishing a legal minimum working age of 18 years.
However, gaps remain in legal protections for working children. The lack of a national
minimum age for employment increases the likelihood that very young children may engage in
activities that jeopardize their health and safety.
The Juvenile Justice (Care and Protection of Children) Act prohibits employers from exploit
ing juvenile employees under age 18, through practices such as keeping them in bonded condi
tions or garnishing their wages. Violators may be fined or imprisoned.
The Bonded Labor System (Abolition) Act outlaws bonded labor in India and provides for
districtlevel vigilance committees to investigate allegations of bonded labor and release anyone
found in bondage. The Act also provides for rehabilitation assistance payments for released
bonded laborers. Persons found using bonded labor may be fined and face imprisonment. In
April 2013, the Criminal Law (Amendment) Act was passed, which amended the Indian penal
code to protect children and adults from being trafficked into exploitative situations, including
forced labor situations. Penalties include fines and up to lifetime imprisonment. In 2012, the
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Government passed the Protection of Children from Sexual Offence Act. The law protects chil
dren from sexual assault, sexual harassment and pornography and establishes Special Courts for
trials of these crimes. The amendment includes penalties for those who employ children or adults
who have been trafficked. Penalties include fines and up to lifetime imprisonment. The Informa
tion Technology (Amendment) Act of 2008 includes penalties of fines and imprisonment for any
person who publishes, collects, seeks or downloads child pornography in electronic form. The
Narcotic Drugs and Psychotropic Substance Act No. 61 makes it illegal to cause any person,
including children, to produce or deal in narcotic or psychotropic substances; punishment con
sists of fines and imprisonment.

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Education is free and compulsory to age 14. The Right of Children to Free and Compulsory
Education Act (RTE) lays out the country's commitment to provide universal access to primary
education with a focus on children from disadvantaged social groups. The RTE provides for free
and compulsory education to all children ages 6 to 14. The Act prohibits denying admission to
children who lack a birth certificate, allows children to transfer schools, requires local authorities
to identify outofschool children, forbids discrimination against disadvantaged groups, and
prescribes quality education standards. In 2012, the RTE was amended to include children with
disabilities. Research has shown that disabled children who face barriers to education may be at
greater risk of working in hazardous occupations.
Government is taking various proactive measures towards convergence of schemes of differ
ent Ministries like Ministries of Human Resource Development, Women & Child Development,
Urban Housing & Rural Poverty Alleviation, Rural Development, Railway, Panchayati Raj insti
tutions etc. so that child labour and their families get covered under the benefits of the schemes
of these Ministries. Some are listed below:
Ministry of Women and Child Development for supplementing the efforts of this Ministry in
providing food and shelter to the children withdrawn from work through their schemes of
Shelter Homes, etc.

Ministry of Human Resource Development for providing Midday meal to the NCLP school
children, teachers training, supply of books, etc under Sarva Shiksha Abhiyan and
mainstreaming of NCLP children into the formal education system.

Convergence with Ministries of Rural Development, Urban Housing and Poverty Alleviation,
Panchyati Raj for covering these children under their various income and employment gen
eration scheme for their economic rehabilitation.

In each State one officer from the State Department of Labour has been nominated as Anti
Human Trafficking Unit (AHTU) to act as link officer for coordinating with Ministry of
HRD in that state for prevention of trafficking of children. CBI is the nodal anti trafficking
agency.

Convergence with Ministry of Railways for generating awareness and restricting trafficking
of children. Further the Ministry is implementing a pilot Project Converging Against Child
Labour support for India's Model in collaboration with International Labour Organisation,
SRO Delhi funded by US Department of Labour with the objective to contribute to the
prevention and elimination of hazardous child labour, including trafficking and migration of
children for labour. The Project is covering two districts each in Bihar, Jharkhand, Gujarat,
Madhya Pradesh, and Orissa for duration of 42 months.

GS

Rescue & Repatriation:

During inspections and raids, children identified are rescued and rehabilitative measures are
set forth in motion by way of repatriation, in case of migrant child labour, and providing
[43]

bridge education with ultimate objective of mainstreaming them into the formal system of
education. Besides prevocational training is also provided to the rescued children.
Rehabilitation:

With regard to educational rehabilitation, the Government is implementing National Child

Labour Project Scheme (NCLP) in 266 child labour endemic districts in 20 States. Objective
of the Scheme are:

I.

This is the major Central Sector Scheme for the rehabilitation of child labour.

II. The Scheme seeks to adopt a sequential approach with focus on rehabilitation of children
working in hazardous occupations & processes in the first instance.
III. Under the Scheme, survey of child labour engaged in hazardous occupations & processes has
been conducted.

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IV. The identified children are to be withdrawn from these occupations & processes and then
put into special schools in order to enable them to be mainstreamed into formal schooling
system.
V. Project Societies at the district level are fully funded for opening up of special schools/
Rehabilitation Centres for the rehabilitation of child labour.

Under the Scheme children found working in hazardous occupations are withdrawn from
work and put into bridge schools where they are provided with formal/nonformal educa
tion, vocational training, health care, midday meal and stipend of Rs.150/ per month, with
ultimate objective of mainstreaming them into formal educational system.

At present 7311 special schools are in operation with enrolment of 3.2 lakh children. Under
the Scheme, about 8.52 lakh children have been mainstreamed into formal system since
inception.

Institutional Mechanisms for eliminating child labour

GS

The National Authority for Elimination of Child Labor is a highlevel government body,
chaired by the Ministry of Labor and Employment (MOLE). It reviews, monitors, and coordinates
policies and programs on child labor. The National Steering Committee on Child Labor is a
tripartite committee that guides and monitors child labor policy, with members representing
government agencies, employers, and workers. The Secretary of Labor and Employment chairs
the Central Monitoring Committee, which is responsible for reviewing the prevalence of child
labor and monitoring actions taken to eliminate child labor. The Core Group on Child Labor,
which is composed of eight ministries and chaired by MOLE, coordinates the convergence of
social protection schemes to reduce child labor.
The National Human Rights Commission (NHRC) is charged with monitoring implementa
tion of the Bonded Labor System (Abolition) Act. The NHRC monitors state level action against
bonded labor through its review of quarterly reports by state governments on bonded labor and
through exploratory and investigative missions. The NHRC maintains an office to monitor the
progress of cases involving bonded labor and child labor that are pending with authorities
throughout the country. Despite the rescue and rehabilitation of bonded laborers, prosecutions
have not always taken place.
The Ministry of Women and Child Development (MWCD) is charged with coordinating
antitrafficking policies and programs for women and children. The Ministry of Home Affairs
(MHA) AntiHuman Trafficking Cell continues to implement the Government's nationwide plan
to combat human trafficking by coordinating with states to establish antihuman trafficking units
[44]

(AHTUs) and training thousands of officials to combat human trafficking. During the reporting
period, 194 AHTUs have been established and the MHA provided an additional $1.5 million to
establish 110 more AHTUs. In January 2012, the Central Bureau of Investigation established an
antihuman trafficking unit with a mandate to conduct operations to arrest traffickers of women
and children.
The National Commission for the Protection of Child Rights (NCPCR) investigates cases that
may involve a violation of a child's rights or a lack of proper implementation of laws relating to
the protection and development of children, including those related to child labor.
While MOLE provides oversight and coordination regarding the country's labor laws, state
governments employ labor inspectors to enforce these laws. Between January and August 2012,
the Ministry of Labor reported that 25,040 child labor inspections took place. During this same
period, there were 589 prosecutions and 167 convictions. During the reporting period, children
were rescued from hazardous work during raids in several areas, including Delhi, Gujarat, and
Karnataka. When child labor prosecutions are launched, it may take years before a case is
resolved because the judicial system is backlogged and overburdened.

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Eight state governments adopted state action plans for the elimination of child labor. In
2012, the Jharkhand State Action Plan became the latest of these. The Jharkhand plan calls for
stronger enforcement mechanisms as well as the rescue and rehabilitation of children. Com
plaints about hazardous child labor can be made through a tollfree helpline, Child Line, which
operates in 193 cities across India. In 2012, Child Line expanded to 68 additional cities. Com
plaints are then given to the police to investigate and rescue children.

Possible Solutions

GS

Under India's federal structure, state and local police are also responsible for enforcing laws
pertaining to human trafficking. The Government of India has invested more than $400 million
to establish the Crime and Criminal Tracking and Networking System to connect all of India's
15,000 police stations. This will enable police to better monitor trends in serious crimes, including
trafficking. As of 2012, this system was still in the process of being completed. It is not known
whether the tracking system will disaggregate its data to include child trafficking victims, and
this data is not currently being collected or made public through other mechanisms.

Elimination of poverty, free and compulsory education, proper and strict implementation of
the labour laws, abolishment of child trafficking can go a long way in solving the problem
of child labour.

After the 86th Amendment of the Constitution in the year 2002, the provision for free and
compulsory education between the age group of 6 to 14 years has been included as funda
mental right under Article 21A. Children irrespective of their race, caste, sex, economic
condition, religion, place of birth, and parents to whom they born of need to how to read
and write. They need social and professional skills that only a school and nurturing envi
ronment can provide.

The NGOs also have a big role to play in this regard. Various NGOs are working for the
cause of child labour. MVF in Andhra Pradesh is a striking example. They have been work
ing for the welfare of children in various respects.

Compulsory education can help eradicating the problem of child labour up to a large extent.
Statistics also show that education has helped in reducing child labour in Western Countries
up to a large extent.

Organization of literacy and awareness programme to prevent children from employment.

[45]

Amendment and Modification into Social Security Legislation governing Child Labour.

Control on Population growth to eliminate of Poverty which is basic cause of Child Labour
issues.

Mandatory on industrialists for equal pay without discrimination as to Age, Status, Religion
etc.

Adequate health services for children at large living in the society.

Need to provide training and education to the child workers during their free time.

79

Slums in India

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Urbanisation in India has been increasing at high pace. The increase in the percentage of
population residing in urban areas is attributable to three factors. The first factor is the rural
urban differential in the rates of natural increase. The second factor is migration from rural to
urban areas. The third reason is the reclassification of villages as town. This is also leading to the
rise of slums in India.
The Pranab Sen Committee has defined Slums as: "A Slum is a compact settlement of at least
20 households with a collection of poorly built tenements, mostly of temporary nature, crowded
together usually with inadequate sanitary and drinking water facilities in unhygienic conditions".
Slums data: NSSO Survey

Three types of slums have been defined in Census, namely, Notified, Recognized and Iden
tified.
(i) All notified areas in a town or city notified as 'Slum' by State, Union territories Administra
tion or Local Government under any Act including a 'Slum Act' may be considered as
Notified slums

GS

(ii) All areas recognised as 'Slum' by State, Union territories Administration or Local Govern
ment, Housing and Slum Boards, which may have not been formally notified as slum under
any act may be considered as Recognized slums
(iii) A compact area of at least 300 population or about 6070 households of poorly built con
gested tenements, in unhygienic environment usually with inadequate infrastructure and
lacking in proper sanitary and drinking water facilities. Such areas should be identified
personally by the Charge Officer and also inspected by an officer nominated by Directorate
of Census Operations. This fact must be duly recorded in the charge register. Such areas may
be considered as Identified slums Some of the salient findings of the survey are as follows:
Number of Slums

A total of 33,510 slums were estimated to be present in the urban areas of India. About 41%
of these were notified and 59% nonnotified.

Maharashtra, with an estimated 7723 slums, accounted for about 23% of all slums in urban
India, followed by Andhra Pradesh, accounting for 13.5%, and West Bengal, which had a
share of about 12%.

Of the 19,749 nonnotified slums estimated to exist in urban India, Maharashtra accounted
for about 29%, West Bengal for about 14%, and Gujarat for about 10%.

[46]

Out of an estimated 13,761 notified slums in urban India, Andhra Pradesh had about 23%,
Maharashtra about 14%, and Madhya Pradesh, West Bengal and Tamil Nadu about 9%
each.

Number of slum households

An estimated 8.8 million households lived in urban slums, about 5.6 million in notified and
3.2 million in nonnotified slums.

The notified slums formed 41% of all slums but housed 63% of all slumdwelling households
in India.

As many as 38% of slum households of urban India were estimated to be living in Maharashtra,
and 18% in Andhra Pradesh.

Of slum households in nonnotified slums, 40% were estimated to be present in Maharashtra,

and 9% each in Gujarat and West Bengal.

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Average slum size

At the allIndia level the average slum size was estimated at 263 households. The average
notified slum had 404 households and the average nonnotified slum had only 165.

For notified and nonnotified slums taken together, average slum size was highest in
Maharashtra (433), followed by Karnataka (392) and Andhra Pradesh (352).

Statelevel average slum sizes of notified slums varied widely. For Maharashtra the average
was over 1000 households whereas for Chhattisgarh, it was only 84.

About 56% of slums in the millionplus cities and 58% of those in other urban areas had less
than 150 households.

About threequarters of nonnotified slums (77% in the millionplus cities and 74% in other
urban areas) had less than 150 households. About 40% of the notified slums, both in million
plus cities and also in other urban areas, had 150450 households.

GS

Characteristics of slums

At allIndia level 44% of slums 48% of notified slums and 41% of nonnotified slums were
located on private land.

In about 60% of all slums, the majority of houses had pucca structures. The proportion of
such slums was 85% among notified slums but only 42% of nonnotified slums.

At the allIndia level 71% of all slums had tap as major source of drinking water, the figure
being 82% for notified slums but only 64% for nonnotified slums.

The phenomenon of absence of electricity in slums appeared to be largely confined to non

notified slums. At allIndia level only 6.5% of all slums had no electricity the corresponding
figures being 11% for nonnotified slums but only 0.1% for notified slums.

In about 66% of all slums, the road within the slum used by the dwellers as main thorough
fare was a pucca road. The proportion was 83% for notified slums and 55% for nonnotified
slums.

At the allIndia level 31% of slums had no latrine facility, the figure being 42% for non
notified and 16% for notified slums.
[47]

About 31% of all slums had no drainage facility the figure being considerably higher for
nonnotified slums (45%) than for notified slums (11%).

At the allIndia level, 27% of all slums had no garbage disposal arrangement the figures
being about 38% for nonnotified slums and about 11% for notified slums.

In an estimated 32% of all slums, the approach road to the slum usually remained water
logged due to rainfall. The figure was 35% for notified slums and 29% for nonnotified slums.

At the allIndia level 24% of slums benefited from welfare schemes such as Jawaharlal Nehru
National Urban Renewal Mission (JNNURM), Rajiv Awas Yojana (RAY), or any other scheme
run by the Central Government or State Government or any local body. The proportion
benefiting from such schemes was 32% among notified and 18% among nonnotified slums.

Various reasons for creation of slums are listed as follows:

The shortage of developed land for housing:

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When a city expands, it sucks in the villages surrounding it. In the process, the segregated
colonies of fishermen, herdsmen, etc., are also sucked in the city. The agricultural land of the
village is put to urban land use, whereas the inhabited area of the village is left intact without
the infrastructure facilities. In comparison to other areas, the rent and cost of living in these areas
would remain low, resulting in overcrowding. Due to the lack of municipal services, slum con
ditions prevail and over the time, colonies of fishermen, herdsmen and such others become slums.
The high prices of land beyond the reach of urban poor:

GS

The slums developed in one area of the city, where the poor live get deteriorated in course
of time. The area gets congested and overcrowded and in the absence of adequate municipal
services, slum conditions increase. For example, in some cities during the 19th century, particu
larly in the states of Maharashtra and Gujarat, large industrial units tried to attract and retain
their workers by providing small tenements or multistoried row houses in the pattern of army
barracks. These row houses, called chawls, came up without any coordinated planning and
were deficient in the basic amenities. The industrial workers who lived there found the residences
comfortable enough, but that increased their dependence on their employer. Over time, however,
due to the lack of upkeep, dilapidation and so on, most of the chawls have become extremely
poor in terms of quality of life.
A large influx of rural migrants to the cities in search of jobs:

A slum develops as a result of the squatting of poor migrants. Majority of the migrants that
come to the city are unskilled workers, who come to the city in search of better living conditions.
Their dream usually will not work out and they end up in some lowpaid jobs. As these low paid
workers are too poor to rent a house and pay for the urban infrastructure and facilities, such as
water, sewerage and drainage, they squat on the vacant public land near the places of work,
erect huts and use public facilities. Added to that, the city municipal corporation considers such
settlement as illegal and does not provide any municipal services adding to the woes of the
settlers and also paving the way for the growth of slums.
Problems faced by Slum Dwellers:

[48]

The urban poor are vulnerable to disease brought on by unhygienic conditions. In key
indicators for child health, the urban poor children fall well below the national urban aver
age. Only 53 per cent of the urban poor children are covered by an Anganwadi Centre
(AWC) and only 10.1 per cent of women had regular contact with a health worker. All this
translates into poor nutritional status as well. Nearly 59 per cent of urban poor women and
71.4 per cent of urban poor children suffered from anaemia. Malnutrition, measured through

underweight (47.1 per cent) and stunted children (54.2 per cent), is significant among the
urban poor. Outofpocket expenditure for health also pushes individuals further into pov
erty.
The urban poor are vulnerable to a lack of access to education services. Consequently, the
lack of education results in a lack of skill sets needed to acquire employment in the formal
sector.

Lack of education and health among the urban poor is compounded by a lack of access to
finance, which is a prerequisite for employment, poverty reduction, and in the longrun
sustained economic growth. However, the formal financial sector serves only a minority,
with most households lacking even basic financial services.

A key area where the urban poor are particularly vulnerable is the lack of a legislative
framework to empower the urban poor. This involves giving legislative strength to policy
initiatives such as inclusive urban planning, financial empowerment of the poor, enabling
livelihood options, and overall, granting property rights to the urban poor. One area where
the urban poor are particularly vulnerable, due to legislative exclusion, is security of tenure
which is a prerequisite for access to formal financial institution access, access to basic services
and security from evictions.

The sewerage system of the slum area is not sufficient in everywhere. Most of the slum area
has open drainage system. The drains are very much dirty, unhygienic and undeletable
which need renovations. The sewerage system of this area is needed to improve.

Peoples called "Slum" are a black spot and often an unwanted component in urban civiliza
tion. This creates a social problem for slum dwellers. For economical backdrop unsocial
activities are generally conduct by the some slum peoples. The most vibrant problem is
unsocial alcoholic business. Also the other problems like Murder, Theft, and Extortion is
organized here.

Initiatives taken:

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GS

The government has taken following initiatives to improve the situation of slums:
a) Jawaharlal Nehru National Urban Renewal Mission (JNNURM) which was launched on
3rd December, 2005 with the objectives of augmenting infrastructure facilities in cities and
towns along with provision of shelter and basic civic services to slum dwellers/urban poor.
JNNURM aims at creating 'economically productive, efficient, equitable and responsive Cit
ies' by a strategy of upgrading the social and economic infrastructure in cities, provision of
Basic Services to Urban Poor (BSUP)[1] and wideranging urban sector reforms to strengthen
municipal governance in accordance with the 74th Constitutional Amendment Act, 1992.
b) Rajiv Awas Yojana (RAY) has been launched in 2009, for the slum dwellers and the urban
poor. This scheme would aim to provide support for shelter & basic civic and social services
for slum redevelopment and for creation of new affordable housing stock to States that are
willing to assign property rights to slum dwellers. The Slum Free City/State Plan is envisaged
to comprise of two parts Part I Strategy to redevelop existing slums and Part II Strategy
for prevention of creation of slums, delineating the development of affordable housing for the
urban poor and revision to existing urban policy and programmes for the prevention of
slums. This plan would form the basis for providing assistance to the States, after the scheme
is approved.
c)

National Slum Development Programme (NSDP), Night Shelters, Two Million Housing
Scheme, Accelerated Urban Water Supply Programme (AUWSP), and Low-Cost Sanita[49]

tion - provide for a wide range of services to the urban poor including slumdwellers. They
include identification of the urban poor, formation of community groups, involvement of
NGOs, selfhelp/thrift and credit activities, training for livelihood, credit and subsidy for
economic activities, housing and sanitation, environmental improvement, community assets,
wage employment and convergence of services.
d) Valmiki-Ambedkar Awas Yojana (VAMBAY) has been introduced in 200102 to provide
a shelter or upgrading the existing shelter to BPL people in urban slums. Twenty per cent
of the total allocation under VAMBAY is provided for sanitation and community toilets to
be built for the urban poor and slum dwellers
RBI in a special drive to increase financial inclusion in urban areas has asked banks to bring
all districts in metropolitan areas under the lead bank scheme (LBS) fold. The purpose of the
LBS extension is to bring all the unbanked urban areas under the banking fold. The move
is part of increasing the scope of its financial inclusion drive to urban areas on one hand and
helping the government realize its efforts to plug the loopholes in subsidy deliveries by
transferring all the benefits directly to the bank accounts of the target people. The scheme
will be extended to all the districts in metropolitan areas.

Issues in implementation

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e)

It has been observed that there are a number of deficiencies in the programmes launched
by the GOI and their implementation suffers from several roadblocks. The problems in implemen
tation arise both from the people living in the slums, who lack sensitivity towards the benefits
of improvement on the quality of their lives and also the implementing agencies which are almost
nonfunctional. The lack of political will to contain the problem compounds the issue manifold.
All the state governments in the country are not taking this problem seriously. Many of them do
not use the funds allocated to them by the central government for the specific purpose and the
money, thus allocated, lapses.

GS

There are certain practical issues also which need to be addressed, e.g., in case of many
programmes/schemes launched for slum population or their rehabilitation, the beneficiaries are
required to contribute a certain percentage of cost of housing/dwelling units, which they are not
able to afford. This deprives many beneficiaries of the gain from the government effort as also
they remain in the same circumstances even though a lot of public money (through budgetary
allocation) is earmarked for improving their lot. Therefore, many such schemes are of no use to
the target population. Many a times such funds that come to the states/UTs as financial assis
tance are either misappropriated or are pocketed by people who are not really the target
population but enjoy political patronage and clout amongst the slum dwellers and are later
'helpful' in getting votes during the civic, state or national elections.
Despite facing several impediments, the local, state and central governments in India have
been successful in partially dealing with the problems of slum dwellers. The data on living
conditions and demographic profile of the slum dwellers collected by the NSSO in its 65th round
and compared with its 58th round highlights the fact that there has been a considerable improve
ment in the living conditions in the slums and squatters in India over the last one decade.
However, the rate at which the slums are growing as a result of unplanned urbanization in the
country multiplies the slum problems at a rate much faster than they are resolved or taken care
of.
Mains question:
Government of India should focus on slum redevelopment rather than on slum clearance.
Illustrate.
[50]

80

Ponzi Scheme and Issues

A Ponzi scheme is an investment fraud that involves the payment of purported returns to
existing investors from funds contributed by new investors. Ponzi scheme organizers often solicit
new investors by promising to invest funds in opportunities claimed to generate high returns
with little or no risk. In many Ponzi schemes, the fraudsters focus on attracting new money to
make promised payments to earlierstage investors to create the false appearance that investors
are profiting from a legitimate business.
Characteristics of a Ponzi Scheme
The Benefit: A promise that the investment will achieve an above normal rate of return. The
rate of return is often specified. The promised rate of return has to be high enough to be
worthwhile to the investor but not so high as to be unbelievable.

2.

The Setup: A relatively plausible explanation of how the investment can achieve these above
normal rates of return. One oftenused explanation is that the investor is skilled and/or has
some inside information. Another possible explanation is that the investor has access to an
investment opportunity not otherwise available to the general public.

3.

Initial Credibility: The person running the scheme needs to be believable enough to con
vince the initial investors to leave their money with him.

4.

Initial Investors Paid Off: For at least a few periods the investors need to make at least the
promised rate of return if not better.

5.

Communicated Successes: Other investors need to hear about the payoffs, such that their
numbers grow exponentially. At the very least more money needs to be coming in than is
being paid back to investors.

Working of Ponzi scheme:

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1.

GS

The scheme revolves around the process of paying old investors with the money you get
from new investors. The central method remains the same. All one has to do is hook a few
investors who are willing to get in early on a onceinalifetime business venture. The details of
the investment don't matter too much.
After the schemer has convinced a handful of investors to fork over money, those funds can
bankroll a nice car or, if the schemer is truly sneaky, he or she can use it to rent office space
and buy some fancy furniture. These props will help con the next round of investors. Now, he
or she is ready to find more investors. This time, the schemer takes a slice off the top for himself
or herself and uses the rest to pay off the first rung of investors with some initial returns.
Eventually, the second rung of investors will need its payout. This is a simple matter of
wash, rinse and repeat: The money from a newly recruited third rung of investors can pay off
the second rung and deliver more returns to the first rung.
But as the cycle goes on, it gets more complicated. Earlier rungs of investors will get suspi
cious if they don't continue to see returns. New investors will have to be paid back their initial
investment, and the schemer will have to appease them with regular returns. This means that
new investors will have to be added to the Ponzi scheme continuously in order to pay all the
previous rungs. The schemer is under an enormous amount of pressure to keep adding investors,
and one person can only do so much.
Here is an example of how a ponzi scheme works and it is shown in the table below. In
January, the promoter convinces Katie to invest $100,000 in his scheme. The promoter then pays
Katie $10,000 each month using Katie's own money.
[51]

As Katie receives $10,000 each month she doesn't suspect anything is wrong and happily
recruits friends and work colleagues to invest too. After 3 months, Katie's neighbour Adam
decides to invest $100,000 after hearing about Katie's great returns.
After both Katie and Adam have invested their savings, the returns continue to come in
April. But in May they don't hear anything from the promoter. They try to contact him but his
number has been disconnected.
The promoter has taken off leaving two devastated people in his wake. Katie lost $70,000
and Adam lost $90,000. The promoter got $160,000 out of the scheme.
This is example has only two victims but in reality these schemes can have dozens or even
hundreds of victims.
Saradha Ponzi scheme fraud

Impact of Ponzi scheme:

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The Saradha Group financial scandal is a financial scam that was caused by the collapse of
a Ponzi scheme run by Saradha Group, a consortium of over 200 private companies that was
believed to be running a wide variety of collective investment schemes (popularly but incorrectly referred to as chit fund) in Eastern India. The group collapsed in April 2013, causing
an estimated loss of INR 200-300 billion (US$4-6 billion) to over 1.7 million depositors.In
the aftermath of the scandal, the State Government of West Bengal, where the Saradha Group
and the majority of duped investors were based, instituted an inquiry commission to investigate the collapse and also set up a fund of INR 5 billion (92 million USD) to ensure that
low-income investors are not bankrupted. The Union Government through the Income Tax
Department and Enforcement Directorate also launched a multi-agency probe to investigate
the Saradha scam, as well as other similar Ponzi schemes

GS

Companies illegally mobilising deposits diverted considerable funds (estimated to be around

INR 240 billion in the last three years) from small savings funds promoted by state government.
Official data show a steady slide in smallsavings deposits and a spurt in withdrawals, which
left a thin slice for the state government to borrow from to make ends meet. This had ripple effect
on the overall macroeconomic situation of the state, as because instead of being used by govern
ment for public purpose the money went into Ponzi schemes which either were siphoned off to
foreign locations or were put to use for private gains.
On microeconomic front it is feared that legitimate Nonbanking financial companies and
micro finance institutions would be stigmatised and would lead to a vicious cycle of low deposi
tor trust, higher interest rates, lower lending and a localised credit crunch.Furthermore as the
majority of the depositors in ponzi scheme came from the lowest economic strata, the loss of the
investment would result in a further decrease in social mobility.
Steps taken by Government:

[52]

The Ministry of Corporate Affairs has constituted a Steering Committeeto develop a "Fraud
Prediction Model" aimed at generating alerts for prevention of fraud and malfeasance. It is
also proposed to revamp the existing Market Research & Analysis Unit (MRAU) in the
Serious Fraud Investigation Office (SFIO) to enable it to function as an intelligence unit.
Giving a fillip to the early establishment of a stateofart Forensic Lab within the premises of
SFIO in the national capital; and the development of a Comprehensive Early Warning Sys
tem (EWS) for detection of corporate fraud and malfeasance at the earliest, three important
MoUs have been signed by the Ministry of Corporate Affairs. These MoUs are:

i.

Between Director, SFIO ( which functions under the Ministry of Corporate Affairs) and
Director, National Institute of Electronics and Information Technology (NIELIT), a scientific
organization under the Ministry ofCommunications and Information Technology;

ii.

Between Joint Secretary, Ministry of Corporate Affairs and Director, Financial Intelligence
Unit (FIUIND), an agency under the Ministry of Finance; and

Director, SFIO and Director, FIU-IND.

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As per the Memorandum, NIELIT will set up a stateofart Forensic Lab within the premises
of SFIO with a total outlay of Rs. 3.80 Crore on a turnkey basis, to be completed in two phases.
The MoUs signed with FIUIND will lead to better and faster exchange of information between
the three Government entities. FIU has been playing a pivotal role in the collection and dissemi
nation of information on suspicious banking transactions under the Prevention of Money Laun
dering Act, 2002. FIUIND has been helping both the Ministry and SFIO from time to time by
supplying information on suspicious banking transactions. Having access to banking information
as well as expertise of FIU, the MoU will help SFIO in conducting its investigation in a more
effective manner. These initiatives will facilitate development of a comprehensive EWS for detec
tion of fraud and malfeasance at the earliest.
The concerned regulatory agencies of the Central Government have adopted different mea
sures aimed at sensitizing the public of the need to be cautious while making investments
into schemes, etc. The Ministry of Corporate Affairs conducts Investor Awareness Programs
(IAP's) for making the public aware of the various instruments of investments available to
them. Similarly, RBI issues notice in newspapers regularly to caution the public against the
design of entities in collection of deposits illegally. Editors of Newspapers are also sensitized
to exercise caution for accepting advertisements pertaining to acceptance of deposits by un
incorporated bodies. Presently, RBI is in the process of undertaking a comprehensive cam
paign aimed at alerting the public against falling prey to the Ponzy schemes and other
monetary malpractices. SEBI also conducts Investor Awareness Programs in cities / towns
across the country and has recently launched publicity campaigns through electronic and
print media.

RBI also regulates deposits / investments of the public with Non banking Finance Compa
nies (NBFC) that are registered with RBI. Complaints received against companies posing as
NBFC's and Unincorporated bodies indulging in cheating / fraud are forwarded by RBI to
the Economic Offenses Wing of the State Police for investigation and further action.

There are certain companies which have floated fraudulent investment deposits mobilizing
schemes (also called ponzi schemes) under various guises and are liable for action under the
Prize Chits and Money Circulation Schemes (Banning) Act, 1978. This Act is administered
by Ministry of Finance (Department of Financial Services) through the State Governments

Statutory status to the Serious Fraud Investigation Office (SFIO);

Amendments in securities laws through Securities Laws (Amendments) Ordinance amend

ing the Securities and Exchange Board of India (SEBI) Act, the Securities Contracts (Regu
lation) Act (SCRA) and the Depositories Act enabling SEBI to deal effectively to violations
of laws by companies and individuals including those running Ponzi schemes;

Increasing application of technology for early detection of frauds though data mining and
Forensic Audit, etc.

Further, RBI has also advised banks to be careful in opening of accounts of the marketing/
trading agency, etc. and ensure strict compliance with the Know Your Customer (KYC) and

GS

[53]

Anti Money Laundering (AML) guidelines of RBI. In cases where accounts have already been
opened in the names of the marketing agencies, retail traders, investment firms, etc; the
Banks have been advised to undertake quick reviews of operations in such accounts particu
larly in cases where large number of cheque books have been requested or issued.
Mains question:
"The frauds related to Ponzi schemes have socioeconomic impact". Explain with examples.

81

A Debate Over Applications of Drones

What are Drones?

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Drones are unmanned aerial vehicle (UAV) either controlled by 'pilots' from the ground or
increasingly, autonomously following a preprogrammed mission. Drones basically fall into two
categories: those that are used for reconnaissance and surveillance purposes and those that are
armed with missiles and bombs. The use of drones has grown quickly in recent years because
unlike manned aircraft they can stay aloft for many hours; they are much cheaper than military
aircraft and they are flown remotely so there is no danger to the flight crew.
The first tangible use of drones came to the fore in 1998 when Bill Clinton's government lost
precious manpower and money as it was trying to trace alQaeda leader Osama bin Laden.
Three years later, in November 2001, the first assault using armed drones was carried out when
the US government tracked and killed alQaeda military chief Mohammed Atef in the rocky
stretches of Afghanistan.
UAVs typically fall into one of six functional categories (although multirole airframe plat
forms are becoming more prevalent):
Target and decoy providing ground and aerial gunnery a target that simulates an enemy
aircraft or missile

Reconnaissance providing battlefield intelligence

Combat providing attack capability for highrisk missions (see Unmanned combat air ve
hicle)

Logistics UAVs specifically designed for cargo and logistics operation

Research and development used to further develop UAV technologies to be integrated into
field deployed UAV aircraft

Civil and Commercial UAVs UAVs specifically designed for civil and commercial applica
tions

GS

Applications of Drones other than military applications:

Drones are a rapidly growing form of technology, used for numerous purposes outside the
military.
a) Remote sensing
UAV remote sensing functions include electromagnetic spectrum sensors, gamma ray sen
sors, biological sensors, and chemical sensors. Biological sensors are sensors capable of detecting
the airborne presence of various microorganisms and other biological factors. Chemical sensors
use laser spectroscopy to analyze the concentrations of each element in the air.
[54]

b) Commercial aerial surveillance

Aerial surveillance of large areas is made possible with low cost UAV systems. Surveillance
applications include livestock monitoring, wildfire mapping, pipeline security, home security,
road patrol, and antipiracy. Wildlife conservation, including tracking orangutans in Sumatra
and monitoring several endangered species. Namibia has teamed up with the WWF (World
Wildlife Fund) to fly drones over national national parks, in hopes of spotting poachers, as well
as monitoring animals.
c)

News:

Huge, expensive news helicopters might not be the standard for much longer. Drones
equipped with cameras can fly lower and into smaller areas than larger manned aircraft. Instead
of wide aerial shots of the freeway in a highspeed chase, viewers could one day get a look into
the driver's side window of a speeding car on the local news.
d) Sports

e) Domestic policing

SC
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Drones are starting to be used in sports photography and cinematography. For example,
they were used in the 2014 Winter Olympics in Sochi for filming skiing and snowboarding
events. Some advantages of using unmanned aerial vehicles in sports are that they allow video
to get closer to the athletes, they are more flexible than cablesuspended camera systems

UAVs are increasingly used for domestic police work in Canada and the United States:a
dozen US police forces had applied for UAV permits by March 2013.
f)

Oil, gas and mineral exploration and production

g) Disaster relief

GS

UAVs can be used to perform geophysical surveys, in particular geomagnetic surveys where
the processed measurements of the Earth's differential magnetic field strength are used to calcu
late the nature of the underlying magnetic rock structure. A knowledge of the underlying rock
structure helps trained geophysicists to predict the location of mineral deposits. The production
side of oil and gas exploration and production entails the monitoring of the integrity of oil and
gas pipelines and related installations. For aboveground pipelines, this monitoring activity could
be performed using digital cameras mounted on one or more UAVs.The InView UAV is an
example of a UAV developed for use in oil, gas, and mineral exploration and production activi
ties.

UAVs transport medicines and vaccines, and retrieve medical samples, into and out of
remote or otherwise inaccessible regions. Drones can help in disaster relief by gathering informa
tion from across an affected area. Drones can also help by building a picture of the situation and
giving recommendations for how people should direct their resources to mitigate damage and
save lives.
Applications of Drones specific to India:
For a thickly populated country like India with tough terrains like the Himalayas, the use
of drones, also known as Unmanned Aerial Vehicles or UAVs, can be many. Armed forces have
been using drones to counter insurgency in areas where human monitoring is a huge challenge
due to rough weather conditions. Since the 1999 Kargil War against insurgency attempts by
neighbouring Pakistan and the subsequent storming of the Indian Parliament in Delhi in 2001,
the Indian Army has acquired over 100 UAVs.
[55]

India has already stated its intent to get more UAVs as combat weapon distributing vehicles
for border areas where road connectivity is a challenge. Interestingly, India accounts for 7% of
global arms imports over the past 7 years.
With Naxal/Maoist insurgency showing no signs of letting up, the government is under
huge pressure to deal with Naxal violence, which is threatening to disrupt normal life in quite
a few states. As the insurgents mostly operate under the green cover (dense forests) or from other
remote areas, drones can send in crucial data related to people movement and alert government
agencies. This, in turn, can save lives and resources deployed to remote areas to fight insurgency.
The data collected by drones can go straight to the experts, without any human interference.
It is no wonder, therefore, that the Panna National Park in Madhya Pradesh had deployed these
drones to capture tiger movement and also for tracking poachers too.

SC
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The big use for drones in India is area specific. While in urban areas it can be used to make
deliveries, as announced by Amazon, drones can play a vital role in bringing down the traffic
jams which have been close to the cardiac arrests that the cities get more often than not. Drones
can also be used to enhance vigilance in urban sectors. These give 360 degree view to the law
enforcements that can help them fight crime better.
Another valid use for drones will be in rural areas, the food bowl of the country. Drones
or UAVs can be greatly helpful in estimating the natural resources or the abuse of the same. For
an agrarian economy like India, drones can go a long way in aiding agricultural activities such
as sowing seeds on vast tracts of land. They can also help in spraying pesticides that will keep
the crop safe from natural predators. Crop insurance and crop mapping are major areas where
drones can be integrated into the farming system for the benefit of farmers.
Disaster management is another key area as the aerial images taken by drones can pinpoint
rain intensity, provide flood warning data and help generate alerts for impending natural disas
ters. These can also help in relief distribution to areas cut off by floods or snow.

GS

Although India is keen to leverage the cloud sowing technology, cost factors are hindering
our progress. But drones can be deployed now for cloud sowing and also for crop monitoring,
thus contributing to the overall food security system of the country.
Moreover, city planning can be done better by using the aerial images taken by drones as
they can take accurate aerial shots of any region, along with the precise data. That will definitely
help in utility installations and planned expansion of cities where water supply lines and elec
tricity poles are being laid haphazardly and unevenly.
This way, both rural and urban India will equally benefit from a technology.
Report of UN on drones applications:
According to the 2010 report of the Special Rapporteur on extrajudicial, summary or arbi
trary executions, drones were originally developed to gather intelligence and conduct surveil
lance and reconnaissance. More than 40 countries now have such technology. Some, including
Israel, Russia, Turkey, China, India, Iran, the United Kingdom, and France either have or are
seeking drones that also have the capability to shoot laserguided missiles ranging in weight from
35 lbs to more than 100 lbs. The report also noted that it is conceivable that nonstate armed
groups could obtain this technology.
Despite mounting public pressure, states continue to refuse to provide factual information
about who has been targeted under their policies and with what outcome, including whether
innocent civilians have been "collaterally" killed or injured. While human rights monitors and
civil society are able to document some instances were the targeted killings take place in easily
accessible urban areas, others go undocumented, either because of remoteness or security con
[56]

cerns. Consequently it is impossible for independent observers and the international community
to judge whether killings were lawful or not. The 2012 report of the Special Rapporteur reiter
ated the recommendation that governments track civilian casualties in disaggregated data so as
to identify the number of casualties resulting from the use of drone attacks.
The US used unmanned drones to launch attacks in six different countries during 2011:
Afghanistan, Iraq, Libya, Pakistan, Somalia, and Yemen. This illustrates how drones make un
dertaking military interventions easier. Drone attacks are often directed at individuals believed
to be terrorist suspects; however, militaries circumvent the laws of war by no actually entering
into war. Civilians have perished in the context of armed conflict (e.g. in Afghanistan) or in
attacks in regions where it is unclear whether or not there was an armed conflict (e.g. in
Pakistan).
Mains questions:
The military applications of drones are raising some of the critical human rights issues.
Explain the issues with suitable examples.

82

Power Supply Shortage in India: Reasons and

Reforms Needed

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1.

Since the industrial revolution, power has become the most basic element required for any
function in an economy. Each segment of modern society is dependent heavily on power, from
domestic, agriculture and industrial to service and governmental operations, all require electricity
and energy to function, without which the world, regardless of a specific sector, would come to
a standstill and India is no exception to the rule.

GS

India currently ranks at fifth in the global scale in terms of the power sector. With an
installed capacity of 2, 07,006 MW, India is falling short to meet the demands of a rapidly
growing economy and population. The exponentially growing population of the country is cre
ating more pressures on the power sector. Wherein countries like the United States and China,
the per capita consumption of power stands at 11,919 KWh and 2559 KWh respectively, in
India, with a population of 900 million (1.2 billion minus 300 million without power), the per
capita consumption stands at 778.71 KWh.
India suffers from an acute shortage of electricity and power, even after being the fourth
largest consumer of electricity and power in the world, following USA, China and Russia.
According to the International Energy Agency (IEA), India requires a further US $ 135
billion in investment for the power sector. The shortages translate into massive power cuts and
intermittent supply issues, which in turn affect all segments of the Indian economy.
But the problems in the power sector from the shortage in supply are:

High Aggregate Technical and Commercial losses (AT&C losses)

Poor financial health of DISCOMs

Shortage of fuel

Low plant load factor

Reasons for power shortage:

The proximate reason for shortages is that distribution companies cannot raise retail prices
during peak demand times in order to clear the market. In fact, conditional on state and year
[57]

e!ects, there is no correlation between shortages and the median electricity price paid by ASI
plants.
"Infrastructure quality and subsidy trap": distribution companies provide lowquality elec
tricity to consumers, who tolerate poor service because they pay very low prices, distribution
companies' losses from low prices are covered by government subsidies, and politicians
support the subsidies to avoid voter backlash.

Underinvestment in new generation capacity. For example, after the 1991 liberalization, 200
Memoranda of Understanding were signed between the government and investors to build
50 gigawatts of generation capacity, but less than four gigawatts of this was actually built.
Of the 71 gigawatts of capacity targeted to be built between 1997 and 2007, only half was
actually achieved (CEA 2013a). Potential power plant investors faced concerns over both
output demand and input supply. Their main customers, the State Electricity Boards, faced
serious ?nancial problems, and it was not clear that they would be able to honor contracts.
Meanwhile, the main supplier of coal is Coal India, governmentowned monopoly that is
struggling to keep pace with demand growth.

In addition, the existing capacity is systematically underutilized. Indian coal power plants
facing problems as equipment malfunction, coal shortages, or poor coal quality.

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Ficci report on impact of power shortage

There is strong correlation between power consumption and the GDP of the country. Power shortages
currently cost India a GDP loss of USD 68 billion (0.4 per cent of total GDP),
Transmission bottlenecks are an important reason for these shortages. Since demand and generation
capacity are both expected to increase in the future, transmission constraints need to be addressed
urgently, said the report released today.

GS

The transmission sector is already lacking in investments made so far. Although 50 per cent of the
amount invested in power generation should be invested in transmission, in India this figure stands
at a mere 30 per cent.
The report said that one of the important reasons for the lagging transmission capacity in the country
is the Aggregate Technical and Commercial losses being faced by the sector.
AT&C losses in India stood at 26 per cent, which was much higher than the global average of 9 per
cent in 2010.
"Another important issue in the transmission sector has been the inability to evacuate excess power
from surplus regions and channel it to regions that face shortages
With the future investments in the sector planned to be USD 75 billion for the two Five Year Plans
(from 2012-2022) the investments in the transmission sector certainly need to be jacked up significantly. The investment required in the power transmission sector is about USD 35 billion, out of
which about USD 19 billion is planned to come from Power Grid Corp. The remaining USD 16
billion would have to be secured from private players.
Steps taken bygovernment :

One gridOne nation

Five national grids Northern, Western, Southern, Eastern and North Eastern manage the
country's power supply. These grids maintained by the centre. All of them are now got inter
connected.
[58]

Advantages with the National Grid (One nation-one grid)1. It will be a synchronous grid so it will augment interregional power transfer capacity of the
states in the south.
2. It will also relieve the congestion in some transmission corridors.
3. It will solve frequency problems of Tamil Nadu and also would help in getting sufficient power
in shortage case.

Launched India Smart Grid Forum

Smart grids" are sophisticated, digitally enhanced power systems where the use of modern
communications and control technologies allows much greater robustness, efficiency and flexibil
ity than today's power systems.

SC
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Smart Grid envisages providing choices to each and every customer for deciding the timing
and amount of power consumption based upon the price of the power at a particular moment
of time. Apart from providing choices to the consumer and motivating them to participate in the
operations of the grid, causing energy efficiency and accommodating all generation and storage
options, Smart Grid also envisages various properties for the Grid like selfhealing and adaptive
islanding. This all will enable electricity markets to flourish.
India Smart Grid Forum will be a nonprofit voluntary consortium of public and private
stakeholders with the prime objective of accelerating development of Smart Grid technologies in
the Indian Power Sector, whereas India Smart Grid Task Force will be an inter ministerial group
and will serve as Government's focal point for activities related to "Smart Grid".

R-APDRP:

GS

To reduce the AT&C losses in the country and to improve the power distribution sector of
state utilities, Government of India has launched the RestructuredAccelerated Power Develop
ment and Reforms Programme (RAPDRP) during 11th Plan period. The focus of RAPDRP is
on actual demonstrable performance by utilities in terms of sustained AT&C loss reduction in the
project areas. Projects under the scheme are taken up in two parts in towns having population
more than 30,000 (10,000 for special category States) as per census 2001. PartA of the scheme
is for establishing IT enabled system for energy accounting / auditing and Supervisory Control
and Data Acquisition (SCADA) for big cities (population:4 lacs and Annual Energy Input:
350MU) whereas PartB is for upgradation, augmentation & strengthening of electrical infra
structure in project towns.
Financial Restructuring of State Distribution Companies

A scheme for Financial restructuring of State Owned Discoms has been notified by the
Government of India to enable the turnaround of the State Discoms and ensure their long term
viability. The scheme contains measures to be taken by the State Discoms and State Govt for
achieving financial turnaround by restructuring their debt with support through a Transitional
Finance Mechanism by Central Govt.
Recommendations:

Increase capacity of installed sources

implementation of smart grid

The Electricity Act had mandated the grant of open access option to the consumers, which
will allow all the bulk consumers to choose their distributors. However, it has not yet been
operationalised. It should be operationalised.
[59]

Use of alternate sources of power generation must be encouraged.

Encourage industry usage of alternate sources of power in place of conventional methods of

backup power. Provide companies opting to use alternative sources of energy with tax
exemptions and subsidize as to make the transition and shift to these sources easier on costs
to the company.

Investment in technology that will reduce transmission losses.

Stricter laws and penalties for the theft and unsanctioned use of electricity.

Mains question:
Power consumption and the GDP of the country are correlated. Illustrate the statement with
examples.

83

New Cabinet of Ministers: Size and Structure; and

its Likely Impact

What are GoMs and eGoMs?

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The recently held general elections and the newly formed government of India has abolished
all the 30 ministerial groups (nine empowered groups of ministers (EGOMs) and 21 groups of
ministers (GOMs)), which were set up to take decisions on various matters before bringing them
for the cabinet's consideration. Also, the size of cabinet was kept very small, until the late
addition of 21 new ministers in November, 2014.

GoMs are small groups of ministers that meet to resolve conflicting views within the council
of ministers. Decisions taken by the GoMs had to be approved by the cabinet. This tradition was
started by the Atal Bihari Vajpayeeled NDA government. The UPA government took this prac
tice a step further by setting up eGoMs. Recommendations by GoMs had to be approved by
cabinet while EGoMs were authorised to decide on their own. UPAI set up about 80 GoMs and
eGoMs, and UPAII took this figure to about 120.

GS

Such ministerial panels were reported to have been formed whenever the Cabinet or its
Committees wanted to have further deliberations for resolution of various issues. From the
pricing of a stake sale in government companies to sanctioning of new Metro rail projects and
considering steps to curb corruption, GoMs and eGoMs were set up for a wide variety of eclectic
subjects.
The GoMs brought into play collective wisdom and institutional experience. It acted as a
single window clearance system. In the coalition era, GoMs and EGoMs did serve the purpose
for which they were set up. They decided several contentious issues, including the plan for
restructuring Air India, the amendments to strengthen Indias antirape laws following the Delhi
gang rape, the allocation of natural gas to different industries and 2G spectrum pricing in the
aftermath of the 2G scam, among several other decisions. But they had also brought policy
paralysis in the system due to long deliberations. Telangana, for instance, was first referred to
a ministerial panel in 2004, where discussions continued till 2012 with no results.
After-effects

[60]

Now, ministries directly decide on policy. Ministries and departments process, at their level,
issues pending before the EGoMs and GoMs and take decisions. If ministries face difficulty
in deciding, the cabinet secretariat and prime ministers office will step in.

The move signals a new style of functioning in which PM will assert more authority instead
of delegating power to other cabinet colleagues. This move will reduce the dominance of
certain Ministers and ensure that everyone has a role and responsibility.

The move would lead to a better sense of transparency in governmental functioning, fast
track decisionmaking processes and increase accountability.

The step is also in line with the ruling partys mantra, of minimum government and
maximum governance.

84

Child Labour in India

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India is home to the largest child population in the world. Child Labour, as defined by the
International Labour Organization, refers to work that leads to the deprivation of ones child
hood and education opportunities. Effects include a loss of potential and dignity in self, which
is harmful to a childs physical and mental development. The term child labour is defined as the
work that deprives children of their childhood, their potential, and their dignity and, that is
harmful to their physical and mental development.
The definition of a child as given under Child Labour (Prohibition and Regulation) Act of
1986defines, child means a person who has not completed his fourteen years of age, however,
mere defining this cant solve the issue. The Union Cabinet has approved a proposal for amend
ing the Act, to ban employment of children aged up to 14 in any form of industry. It will be an
offence to employ such children not only in factories or industries, but also in home or farms,
if their labour is meant to serve any commercial interest. The Cabinet also approved another
amendment to define those children aged 1418 as adolescents and prohibit their employment
in mines, explosive industries, chemical and paint industries, and other hazardous establish
ments. The governments decision is in line with the convention of the International Labour
Organization (ILO), which prohibits any form of child labour until the age of 14.

GS

According to HAQ (meaning Rights in Urdu): Centre for child rights, child labour is most
prevalent among schedule tribes, Muslims, schedule castes, and OBC children. The persistence
of child labour is due to the inefficiency of the law, administrative system, and because it benefits
employers who can reduce general wage levels. HAQ argues that distinguishing between haz
ardous and nonhazardous employment is counterproductive to the elimination of child labour.
Various growing concerns have pushed children out of school and into employment such as
forced displacement due to development projects, such as Dam construction at Narmada and
Tihri; loss of jobs of parents due to economic slowdown, farmers' suicide; armed conflict, and
high costs of health care. Girl child is often used in domestic labour within her own family. There
is a lack of political will to outlaw the child labour.
Following are the conditions, under which an activity shall be recognized as child labour:

is mentally, physically, socially, or morally dangerous and harmful to children; and

interferes with their schooling by:

I. depriving them of the opportunity to attend school;
II. obliging them to leave school prematurely; or
III. Requiring them to attempt to combine school attendance with excessively long and
heavy work.
[61]

Articles related to Child labour in India

Article 14 (No child below the age of 14 years shall be employed to work in any factory or
mine or engaged in any other dangerous employment.

2.

Article 39E (The state shall direct its policy towards securing that the health and strength
of workers, men and women, and the tender age of children are not abused, and that they
are not forced by economic necessity to enter vocations unsuitable to their area and strength.

3.

Article 39F (Children shall be given opportunities and facilities to develop in a healthy
manner and in conditions of freedom and dignity, and that childhood and youth shall be
protected against moral and material abandonment.

4.

Article 45 (The state shall endeavor to provide within a period of ten years from the com
mencement of the constitution, for free and compulsory education for all children until they
complete the age of fourteen years. The main legislative measures at the national level are
The Child Labour Prohibition and Regulation Act 1986 and The Factories Act 1948.

Causes of child labour in India

POVERTY:

SC
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1.

Poverty can be termed as the main reason for child labour in India. Though the country has
achieved commendable progress in industrialization, the benefits of the same have not been
effectively passed on to the lower strata of society. In order to keep costs down, even large
companies employ unorganized workers through contractors, who get uneducated and unskilled
and semiskilled people at very low wages.

GS

This helps the industries to keep their labour costs down at the cost of the poor labourers.
In effect, what happens is that, the children of these poor unorganized labourers have to find
some work to help run the family. They cannot afford to go to school when they do not have
food to eat, and when their other brethren go hungry. Hence, children from such deprived
families try to work as domestic servants, or in factories that employ them, and remain unedu
cated and grow up that way becoming perennial victims of this vicious cycle of poverty and
suppression.
HIGH COMPETITION FOR JOBS

The industrialists in India have been successful in taking advantage of this disadvantage
faced by job seekers. Due to high population, the job seekers are not in a position to bargain a
higher wage. As a result, the poor remain poor working for low wages.
ILLETERACY AND LACK OF EDUCATION
Illiteracy is a situation when a person is not able to read and/or write. This is when the
person is not in a position to get even primary education. Lack of education is another aspect
which is a result of illiteracy and lack of information. An uneducated person is one, who is
generally unaware of things which an average person is required to know. Such people are
normally unaware of their human rights and the rights of their children too. The children of such
people normally become child labourers around their homes.
IRRESPONSIBLE ATTITUDE OF EMPLOYERS
A general sense of irresponsibility towards society is seen among the employers in India,
who are least bothered as to how their employees survive. In spite of being aware of the high
cost of living and inflation, they are least bothered and least ashamed to pay wages, which are
[62]

much below sustenance levels. Also, if the employers were responsible, they in the first place
would not employ children at all.
The following are some of the situations in which children are engaged in work:

Agriculture children working long hours, and under severe hardships on the fields. They are
also exposed to the hazards of working with modern machinery and chemicals;

hazardous industries/ occupations like glass making, mining, construction, carpetweav

ing, zarimaking, fireworks, and others, as listed under the Child Labour Act;

small industrial workshops and service establishments;

on the streets ragpickers, porters, vendors etc;

Domestic work largely invisible and silent, and hence face higher degree of exploitation and
abuse in the home of employees.

Prevention:

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The steps taken for eradication of Child Labour

GS

According to the Child Labour Prohibition and Regulation Act, children of any age may be
employed, provided employers adhere to restrictions, including a maximum of 6hour workday
with a 1hour rest period, at least 1 day off per week, and no night or overtime work. The Child
Labour Prohibition and Regulation Act bars children from age 14 to 18, from hazardous occu
pations and 65 hazardous processes, such as handling pesticides, weaving carpets, breaking
stones, working in mines, and domestic service. The Factories Act bars children under age 14
from working in factories. Employing children under age 14 in a hazardous occupation or
process can lead to fines and imprisonment. Additionally, the government must either compen
sate the family of the child, or find employment for an adult member of the family. State
governments also have the authority to pass legislation establishing a minimum age for work. In
2012, the State of Rajasthan passed legislation establishing a legal minimum working age of 18
years.
However, gaps remain in legal protections for working children. The lack of a national
minimum age for employment increases the likelihood that very young children may engage in
activities that jeopardize their health and safety.
The Juvenile Justice (Care and Protection of Children) Act prohibits employers from exploit
ing juvenile employees under age 18, through practices such as keeping them in bonded condi
tions or garnishing their wages. Violators may be fined or imprisoned.
The Bonded Labour System (Abolition) Act outlaws bonded labour in India and provides for
districtlevel vigilance committees to investigate allegations of bonded labour, and release anyone
found in bondage. The Act also provides for rehabilitation assistance payments for released
bonded labourers. Persons found using bonded labour may be fined and face imprisonment. In
April 2013, the Criminal Law (Amendment) Act was passed, which amended the Indian Penal
Code to protect children and adults from being trafficked into exploitative situations, including
forced labour situations. Penalties include fines and up to lifetime imprisonment. In 2012, the
government passed the Protection of Children from Sexual Offence Act. The law protects chil
dren from sexual assault, sexual harassment, and pornography and establishes special courts for
trials of these crimes. The amendment includes penalties for those who employ children or adults
who have been trafficked. Penalties include fines and up to lifetime imprisonment. The Informa
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tion Technology (Amendment) Act of 2008 includes penalties of fines and imprisonment for any
person, who publishes, collects, seeks, or downloads child pornography in electronic form. The
Narcotic Drugs and Psychotropic Substance Act No. 61 makes it illegal to cause any person,
including children, to produce or deal in narcotic or psychotropic substances; punishment con
sists of fines and imprisonment.
Education is free and compulsory up to age 14. The Right of Children to Free and Compul
sory Education Act (RTE) lays out the countrys commitment to provide universal access to
primary education with a focus on children from disadvantaged social groups. The RTE provides
for free and compulsory education to all children aged 6 to 14. The Act prohibits denying
admission to children who lack a birth certificate, allows children to transfer schools, requires
local authorities to identify outofschool children, forbids discrimination against disadvantaged
groups, and prescribes quality education standards. In 2012, the RTE was amended to include
children with disabilities. Research has shown that disabled children, who face barriers to edu
cation, may be at greater risk of working in hazardous occupations.

SC
OR
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Government is taking various proactive measures towards convergence of schemes of differ

ent Ministries like Ministries of Human Resource Development, Women & Child Development,
Urban Housing & Rural Poverty Alleviation, Rural Development, Railway, Panchayati Raj Insti
tutions etc. so that child labour and their families get covered under the benefits of the schemes
of these Ministries. Some are listed below:
Ministry of Women and Child Development; for supplementing the efforts of this Ministry
in providing food and shelter to the children withdrawn from work through their schemes
of Shelter Homes, etc.

Ministry of Human Resource Development, for providing Midday meal to the NCLP school
children, teachers training, supply of books, etc under Sarva Shiksha Abhiyan and
mainstreaming of NCLP children into the formal education system.

Convergence with Ministries of Rural Development, Urban Housing and Poverty Alleviation,
Panchyati Raj, for covering these children under their various income and employment
generation scheme for their economic rehabilitation.

In each State one officer from the State Department of Labour has been nominated as Anti
Human Trafficking Unit (AHTU) to act as link officer for cocoordinating with Ministry of
HRD in that state, for prevention of trafficking of children. CBI is the nodal antitrafficking
agency.

Convergence with Ministry of Railways for generating awareness and restricting trafficking
of children. Further the Ministry is implementing a pilot Project Converging against child
labour support for Indias Model in collaboration with International Labour Organization,
SRO Delhi funded by US Department of Labour, with the objective to contribute to the
prevention and elimination of hazardous child labour, including trafficking and migration of
children for labour. The Project is covering two districts each in Bihar, Jharkhand, Gujarat,
Madhya Pradesh, and Orissa for duration of 42 months.

GS

Rescue & Repatriation:

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During inspections and raids, children identified are rescued, and rehabilitative measures are
set forth in motion by way of repatriation, in case of migrant child labour, and providing
bridge education with ultimate objective of mainstreaming them into the formal system of
education. Besides prevocational training is also provided to the rescued children.

Rehabilitation:

With regard to educational rehabilitation, the government is implementing National Child

Labour Project Scheme (NCLP) in 266 child labour endemic districts in 20 States. Objectives
of the Scheme are:
I.

This is the major Central Sector Scheme for the rehabilitation of child labour.

II. The Scheme seeks to adopt a sequential approach with focus on rehabilitation of chil
dren working in hazardous occupations & processes in the first instance;
III. Under the Scheme, survey of child labour engaged in hazardous occupations & pro
cesses has been conducted;
IV. The identified children are to be withdrawn from these occupations & processes and
then put into special schools in order to enable them to be mainstreamed into formal
schooling system; and

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V. Project Societies at the district level are fully funded for opening up of special schools/
Rehabilitation Centres for the rehabilitation of child labour.

Under the Scheme, children found working in hazardous occupations are withdrawn from
work and put into bridge schools, where they are provided with formal/nonformal educa
tion, vocational training, health care, midday meal, and stipend of Rs.150 per month, with
ultimate objective of mainstreaming them into formal educational system.

At present, 7311 special schools are in operation with enrolment of 3.2 lakh children. Under
the Scheme, about 8.52 lakh children have been mainstreamed into formal system since
inception.

Institutional Mechanisms for eliminating child labour

GS

The National Authority for Elimination of Child Labour is a highlevel governmental body,
chaired by the Ministry of Labour and Employment (MOLE). It reviews, monitors, and co
ordinates policies and programs on child labour. The National Steering Committee on Child
Labour is a tripartite committee, that guides and monitors child labour policy, with members
representing government agencies, employers, and workers. The Secretary of Labour and Em
ployment chairs the Central Monitoring Committee, which is responsible for reviewing the preva
lence of child labour and monitoring the actions taken to eliminate child labour. The Core Group
on Child Labour, which is composed of eight ministries and chaired by MOLE, coordinates the
convergence of social protection schemes to reduce child labour.
The National Human Rights Commission (NHRC) is charged with monitoring implementa
tion of the Bonded Labour System (Abolition) Act. The NHRC monitors state level action against
bonded labour, through its review of quarterly reports by state governments on bonded labour,
and through exploratory and investigative missions. The NHRC maintains an office to monitor
the progress of cases involving bonded labour and child labour that are pending with authorities
throughout the country. Despite the rescue and rehabilitation of bonded labourers, prosecutions
have not always taken place.
The Ministry of Women and Child Development (MWCD) is charged with cocoordinating
antitrafficking policies and programs for women and children. The Ministry of Home Affairs
(MHA) AntiHuman Trafficking Cell continues to implement the Governments nationwide plan
to combat human trafficking by cocoordinating with states to establish AntiHuman Trafficking
Units (AHTUs), and training thousands of officials to combat human trafficking. During the
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reporting period, 194 AHTUs have been established, and the MHA provided an additional $1.5
million to establish 110 more AHTUs. In January 2012, the Central Bureau of Investigation
established an AHTU with a mandate to conduct operations to arrest traffickers of women and
children.
The National Commission for the Protection of Child Rights (NCPCR) investigates cases that
may involve a violation of a childs rights or a lack of proper implementation of laws relating to
the protection and development of children, including those related to child labour.
While MOLE provides oversight and coordination regarding the countrys labour laws,
state governments employ labour inspectors to enforce these laws. Between January and August
2012, the Ministry of Labour reported that 25,040 child labour inspections took place. During this
same period, there were 589 prosecutions and 167 convictions. During the reporting period,
children were rescued from hazardous work during raids in several areas, including Delhi,
Gujarat, and Karnataka. When child labour prosecutions are launched, it may take years before
a case is resolved, because the judicial system is backlogged and overburdened.

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Eight state governments adopted State Action Plans for the elimination of child labour. In
2012, the Jharkhand State Action Plan became the latest of these. The Jharkhand plan calls for
stronger enforcement mechanisms as well as the rescue and rehabilitation of children. Com
plaints about hazardous child labour can be made through a tollfree helpline, Child Line, which
operates in 193 cities across India. In 2012, Child Line expanded to 68 additional cities. Com
plaints are then given to the police to investigate and rescue children.

Possible Solutions:

GS

Under Indias federal structure, state and local police are also responsible for enforcing laws
pertaining to human trafficking. The Government of India has invested more than $400 million
to establish the Crime and Criminal Tracking and Networking System to connect all of Indias
15,000 police stations. This will enable police to better monitor trends in serious crimes, including
trafficking. As of 2012, this system was still in the process of being completed. It is not known
whether the tracking system will disaggregate its data to include child trafficking victims, and
this data is not currently being collected or made public through other mechanisms.

Elimination of poverty, free and compulsory education, proper and strict implementation of
the labour laws, abolishment of child trafficking, among others, can go a long way in solving
the problem of child labour.

After the 86th Amendment of the Constitution in the year 2002, the provision for free and
compulsory education between the age group of 6 to 14 years has been included as funda
mental right under Article 21A. Children irrespective of their race, caste, sex, economic
condition, religion, place of birth, and parents to whom they are born of, need to know how
to read and write. They need social and professional skills that only a school and nurturing
environment can provide.

The NGOs also have a big role to play in this regard. Various NGOs are working for the
cause of child labour. MVF in Andhra Pradesh is a striking example. They have been work
ing for the welfare of children in various respects.

Compulsory education can help eradicating the problem of child labour up to a large extent.
Statistics also show that education has helped in reducing child labour in western countries
up to a large extent.

Organizing literacy and awareness programme to prevent children from employment.

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Amendment and Modification into Social Security Legislation governing Child Labour.

Control on Population growth to eliminate Poverty, which is the basic cause of Child Labour.

Mandatory on industrialists for equal pay without discrimination as to age, status, religion
etc.

Adequate health services for children at large, living in the society.

Need to provide training and education to the child workers during their free time.

85

Transition from Nirmal Bharat to Swachh Bharat

Abhiyan

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Nirmal Bharat Abhiyan (NBA) previously called Total Sanitation Campaign (TSC) was
initiated by the Government in 1999. The main goal of the program was to eradicate the practice
of open defecation by 2017. It was a demanddriven and peoplecentered sanitation program. It
focused not only on building infrastructure for sanitation, but also on changing cultural norms
to prevent opendefecation. It provided monetary assistance to BPL families, schools, and
anganwadis, among others, to construct their own toilets. It also focused on Information, Edu
cation, and communication to change the attitude of the people towards sanitation. To build
ownership among the community regarding the program Nirmal Gram Puraskar, monetary
assistance and public recognition was given to those gram panchayats which achieved an open
defecation free status. Due to efforts of Nirmal Bharat Abhiyan, access to toilets in rural areas
has increased from nearly 33 percent to 41 percent, between Census 2011 and NSSO survey of
2013.

GS

To take the practice of sanitation to the next level by removing bottlenecks that were
hindering progress, the Nirmal Bharat Abhiyan, which primarily aimed at rural sanitation has
been restructured and merged with Swachh Bharat Mission, which focuses on sanitation not
only in rural areas, but also in urban areas. Swachh Bharat Mission has two subMissions
Swachh Bharat Mission (Gramin) and Swachh Bharat Mission (Urban). The Drinking Water and
Sanitation Ministry will implement the programme in rural areas, while the Ministry of Urban
Development will do the same in urban areas.
While the Swatch Bharat Mission was announced by the president in the joint session of
the parliament in June 2014, the program was launched on 2nd October 2014, by the Prime
Minister (PM) as a tribute to Mahatma Gandhi. His vision of Clean India Swachh Bharat which
still remained unfulfilled is planned to be accomplished through this program. Its a five year
long campaign from 20142019. The program is slated to culminate in the year 2019 which is
also Gandhijis 150th birthday.
The Swachh Bharat Mission aims to:

create sanitation facilities for all and eliminate completely open defacation by 2019;

build ownership among community. Thus, solid and liquid waste management would be
done through gram panchayats, whereas public toilets and community sanitary complexes
through Public Private Partnership (PPP); and

triggering of communities for behavioural change and usage of toilets shall be given top
priority to ensure increased demand, which will lead to use of assets such created. Effective
use of technology and media shall be done to communicate the message of the benefits of safe
sanitation and hygiene.
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Moving from a communityled program of Nirmal Bharat Abhiyan, the goal of Swachh
Bharat is to make it a mass movement, where people should neither litter nor let others to do
so. A Clean India pledge was administered to all countrymen, by the PM, to promise that every
individual would remain committed to cleanliness and devote about 100 hours of time every year
towards the cause of cleanliness, and they would inspire another 100 people to be part of the
mission. The campaign is India's biggest ever cleanliness drive. The framers of the program are
linking it with patriotism (rashtrabhakti) and commitment to public health so that more and
more people are inspired to be part of it.
Swachh Bharat is proposed to be achieved through:a) coverage of all rural households with individual household latrines, cluster toilets, and
construction of school and anganwadi toilets in all Gram Panchayats; construction of public
& community toilets in urban areas,
b) creation of enhanced demand, convergent action through various agencies and stakeholders
with triggering through enhanced IEC, Informal Education and Communication;
strengthening of implementation and delivery mechanisms;

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c)

d) monitoring outputs (construction) and outcomes (use) at the Gram Panchayat as well as
household levels.
Funding for these new initiatives will be through the following:

budgetary allocations;

contributions to the Swachh Bharat Kosh;

through commitments under Corporate Social responsibility (CSR); and

funding assistance from multilateral sources.

Open defecation

GS

It is the practice of defecating outside and in public, in and around the local community,
as a result of ingrained cultural patterns or having no access to toilets, latrines, or any kind of
improved sanitation.
WHO and UNICEF state that about 611 million people in urban areas lack toilets world
wide (around/over the world); whereas number goes up to, nearly 2001 million in rural areas.
However, these figures do not include the Slums, shantytowns, and illegal refugee colonies;
which mean that urban sanitation needs are far more acute than reported. Overall 1 billion
people around the world are forced to practice open defecation.
Even it has been found, the Nirmal Bharat Abhiyan promoting rural sanitation, both, by
providing means to create facility, and promoting the initiative by incentivizing in the form of
Nirmal Gram Puraskar, could not bring any drastic change in this behavioural pattern.
Impact of open defecation on health and society
Open defecation pollutes the ground water as well as land resources including agricultural
products. Every minute about 1.1 million liters of human excrement enters the river Ganga. These
pathogens then enter the human body either through food or water mixed with feces.
Open defecation is a leading cause of diarrheal death among children. Diarrhea is the third
largest killer of children under five, in SubSaharan Africa. It also leads to typhoid, cholera,
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hepatitis, polio, pneumonia, fatal worm infestation, trachoma, stunted physical development,
and impaired cognitive function. According to the World Health Organization, an average of Rs.
6,500 per person is lost in India due to lack of cleanliness and hygiene. Thus the Swacch Bharat
Mission has with it, not only promise of cleanliness and improved health, but also of improved
economic conditions.

86

Make in India Campaign

Despite India becoming the first nation to successfully send a satellite into orbit around Mars
on its maiden attempt, it is well understood that the world would still be judging the country,
solely on the basis of its economic prowess.

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Timely, it may be that just a day after, the Government of India launched the ambitious,
Make in India initiative to promote India as a global manufacturing hub nationally and abroad;
thereby boosting the countrys economic prospect. This is a great opportunity for the government
to position India as a manufacturing powerhouse able to match dominance of the developed
countries on the world stage. To create conditions for encouraging entrepreneurship, creating
employment for over 10 million people, and attracting Foreign Direct Investment (FDI) will be
the prime concern of this project.

GS

MakeinIndia is a lion's step, was the announcement made by the GoI after launching the
logo of his ambitious campaign to attract companies to India. The logo is the silhouette of a lion
on the prowl, made entirely of cogs, symbolizing manufacturing, strength and national pride.
The lion logo adorns the brand new website makeinindia.com for the campaign and all its
brochures. The website is a ready reckoner for data on 25 sectors that are looking to attract
companies to India. It also lists new initiatives of the government, facts on Foreign Direct Invest
ment and intellectual property rights. The government is pulling out all the stops for ensuring
a smooth sailing for investors, by setting up a dedicated cell to answer queries of business entities
within 72 hours. It will also closely monitor all regulatory processes to make them simple and
reduce the burden of compliance.
Make in India Reforms and Issues:
1.

India has always been a pivotal part of the worlds manufacturing community and the issues
that plague its rise is that of economic reforms which remains largely unresolved. The urgent
need is to reform archaic laws to facilitate economic growth and infrastructure growth.
Policymakers must avoid partisan politics for the sake of swift reforms.

2.

Another issue of concern is protection of foreign investors interests. For example the govern
ment must address intellectual property rights regulations and enforce the rule of law when
ever it is being violated which will protect foreign investors investing resources, technologies
and business knowhow in India.

3.

Ensuring higher volume of FDI in industries, infrastructure and pharmaceutical sectors for
providing proper environment in not going to be easy as well. Not only this, several long
entrenched issues such as ease of doing business, labour reforms and urbanization are all
going to prove as major obstacles in drawing FDI.
According to World Bank, India ranks 134 out of 189 countries in the category, ease of
doing business. There is a clear disconnect between the governments ambition to attracting
FDI and the reality of doing business in India. The country is largely encumbered with poor
governance. India scores poorly when its governmental departments deal with companies on
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matters like obtaining licenses, permits, paying taxes, etc. The Make in India will address
many of these issues to a certain degree.
4.

Labour reforms remain a very sensitive topic politically in India, yet, with China experienc
ing a surge in labour unrest amid economic slowdown, this is Indias opportunity to position
itself as an alternative to China and deliver on its promise of economic growth and employ
ment. The government has already began making progress on this front with proposed
changes to allow businesses to make greater use of apprentices, allowing workers to work
overtime and allow women to work night shifts. It is estimated that two thirds of all Indians
live in villages. Should the Make in India drive be successful it has to cater to the millions
of workers expected to work in the manufacturing sectors based in cities.

Make in India Upcoming Five Challenges

Creating healthy business environment will be possible only when the administrative ma
chinery becomes efficient. India has been very stringent when it comes to procedural and
regulatory clearances. A businessfriendly environment will only be created if India can
signal easier approval of projects and set up hasslefree clearance mechanism.

2.

India should also be ready to tackle elements that adversely affect competitiveness of manu
facturing. To make the country a manufacturing hub the factors of nontax barriers, such as
various quotas must be removed. India should also be ready to give tax concessions to
companies who come and set up unit in the country.

3.

India's small and mediumsized industries can play a big role in making the country take the
next big leap in manufacturing. India should be more focused towards novelty and innova
tion for these sectors. The government has to chart out plans to give special sops and
privileges to these sectors.

4.

Indias Make in India campaign will be constantly compared with China's 'Made in China'
campaign. The dragon launched the campaign at the same day as India, seeking to retain
its manufacturing prowess. India should constantly keep up its strength so as to outpace
China's supremacy in the manufacturing sector.

5.

India must also encourage hightech imports; research and development (R&D) to upgrade
'Make in India' give edgetoedge competition to the Chinese campaign. To do so, India has
to be better prepared and motivated to do world class R&D. The government must ensure
that it provides platform for such research and development.

GS

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1.

Overall, industry experts and analysts have termed the make in India campaign as ex
tremely progressive, but to make this happen, they point out, rightly, hurdles in infrastructure
development; bottlenecks in environmental clearances and unfriendly tax regime have to be
removed to create a level playing field. Similarly, as per the key focus areas, it doesnt sound like
a mere rhetoric; and rather a strong visionary plan. Its no doubt India is entering a decade of
change and growth, however, the rate of success will be determined by how far this government
is willing to implement the reforms it needs to achieve this newly found ambitions. Just like the
scientists behind the Mars Orbiter Mission have made us proud, the government must do whats
necessary to achieve the unthinkable an India finally at its full potential.

87

Role of ISRO in Rural Development

Rural life in India is essentially agricultural, its settlement system consists of villages or
homesteads; socially it connotes greater interdependence among people leading to more deeply
rooted community life, and occupationally it is highly dependent on crop farming, animal keep
ing, smallscale plantation, and related activities.
[70]

As a concept, rural development connotes overall development of rural areas with a view
to improve the quality of life of rural people. In this sense, it is a comprehensive and multidimen
sional concept and encompasses the development of agriculture and allied activities, village and
cottage industries, socioeconomic infrastructure, community services and facilities, and above all
the human resources in rural areas
But more than 700 million Indians live in rural areas and farflung villages that do not yet
have basic services such as electricity, sanitation, and water, much less knowledgeenhancing
technologies such as telecommunication services.
In order to bring about development and enhance the quality of life of the villagers, a
definite policy with regard to communication support must be formulated and pursued.

GS

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Space technology, as the powerful enabler, provides a variety of vital inputs for holistic and
rapid development of rural areas, and villages in specific. India has been among the world
leaders in developing endtoend capability in both satellite remote sensing and communication.
Indian Space Research Organization (ISRO) has made remarkable progress in building state of
the art space infrastructure such as the Indian National Satellite (INSAT) for communication and
the Indian Remote Sensing (IRS) satellites for earth observation. ISRO has also been a champion
in demonstrating the use of space technology for societal good. ISRO has piloted several socially
relevant space application projects like the Satellite Instructional Television Experiment (SITE),
the Training and Development Communication Channel (TDCC), the Jhabua Development
Communications Project (JDCP) using INSAT; and finding prospective groundwater zones to
provide drinking water in villages, providing land and water resources development plans at
watershed level using IRS. Space based services, emanating from Satellite Communication (SatCom)
and Earth Observation (EO) hold much value in transforming the village society. While SatCom
provides the conduit for effective delivery of information and services across vast regions; the EO
provides communitycentric spatial information in terms of georeferenced land record, natural
resources, sites for exploiting groundwater for potable and recharge, incidence of wastelands
having reclamation potential, watershed attributes, environment, infrastructure related informa
tion, alternative cropping pattern, etc. Synthesising the spatial information with other collateral
and weather information, EO also facilitates localespecific advisory services at community level.
Space based systems are effective in supporting disaster management at community level, wherein
the vulnerability and risk related information, early warning, forecast of unusual/extreme weather
conditions, etc., provide for building resilience at village community level.
Thus Space technology should be harnessed by the local bodies to create an information base
and for providing service.
Space Technology Applications for Rural Development are discussed below:
Satellite communication and earth observation satellites have demonstrated their capabilities
to provide the services relating to healthcare, education, weather, land and water resources, land
records, agricultural advisories, etc., relevant at communities/ village level. The valueadded,
highresolution earth observation images provide communitycentric, georeferenced spatial in
formation for management of natural resources, such as land use/ land cover, terrain morphol
ogy, surface water and groundwater, soil characteristics, environment and infrastructure.

Village resource centre

ISRO has embarked upon VRC programme to disseminate the portfolio of services emanat
ing from the space systems as well as other Information Technology (IT) tools, directly downthe
line to the rural communities. VRCs essentially have: digital connectivity (for videoconferencing
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and information transfer) with knowledge centers and specialty healthcare providers enabled via
INSAT; spatial information on natural resources generated using IRS data; a host of information
pertaining to management of natural resources and socioeconomic relevance; and facilities for
primary healthcare services and distance education.
With the involvement of stakeholders, VRCs will catalyse rural entrepreneurship; and facili
tate eGovernance and other services of social relevance. ISRO is implementing VRC programme
in partnership with reputed NGOs, Trusts and other agencies including the Governmental ones.
VRC Services Portfolio
Teleeducation: Focus is on imparting vocational training at local level aimed at skill
development and capacity building to catalyse livelihood support in rural areas; supplementary
teaching to rural children; and nonformal and adult education.

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Telehealthcare: Thrust is on both preventive and curative healthcare at primary level. The
Telemedicine system at VRCs consists of customised medical software, with certain medical
diagnostic instruments. With the help of local doctor/ paramedic, expert medical consultation
and counseling are provided to the villagers from specialty hospitals. Healthcare awareness is
also a major activity of VRCs.
Land and Water Resources Management: Information on land and water resources ex
tracted from satellite images is organised in Geographical Information System (GIS), and pro
vided to the villagers through the VRC. The local farmers, availing the support of the skilled/
trained personnel managing VRCs, utilise this information for better management of their land
resources.

GS

Interactive Advisory Services: VRCs facilitate interactions between the local people and
experts at knowledge centers Agricultural Universities, Technical Institutions, etc on a wide
range of subjects such as alternative cropping systems, optimisation of agricultural inputslike
seeds, water, fertilizer, insecticides, pesticides, producer oriented marketing opportunities, crop
insurance, etc.
Telefishery: VRCs located at coastal tracts are being provided with near real time informa
tion on satellite derived Potential Fishing Zones (PFZ). Information pertaining to inland fisheries,
aquaculture, etc., is also provided through VRCs as relevant.
eGovernance services: The services include information and guidance to local people on
village oriented governmental schemes on agriculture, poverty alleviation, rural employment,
social safety nets and other basic entitlements, animal husbandry and livestock related, micro
finance related, etc.
Weather Services: Short, medium and longterm weather forecasts, at local level; and
agrometeorology advisory services are being enabled.
Others: Depending on the local needs, each VRC provides a host of other services.

Satellite Communication

One of the major components and driving force related to rural development is communi
cation. It has been given highest priority for bringing desirable social and behavioural change
among the most vulnerable rural society. Satellite communications has the ability to simulta
neously reach a large population, spread over vast distances, and inherently is a powerful tool
to support development education and training.
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ISRO had undertaken several projects that focused on development of humanity through
sophisticated satellitebased communication. Right from the inception of utilizing space
programmes for development, the experiments like Satellite Instructional Television Experiment
(SITE), Kheda Communications Project (KCP), Jhabua Development Communications Project
(JDCP), Training and Development Communication Channel (TDCC) have been carried out.
Example:
ISRO''s Gram SAT satellite connects rural development ministry with 1100 panchayats. The
exercise was aimed at getting feedback on the various rural development schemes under opera
tion in the state and to gain an insight into the problems at the field level, on which the ministry
needed to focus further planning efforts.
The effort was equally aimed at enhancing the awareness of the beneficiaries on their
entitlement and various processes involved for availing the benefit of the schemes.

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The communication initiative was part of the ministry's effort to bring about transparency
and efficiency in implementation of its various schemes all over the country, for which it has
been initiating different proactive measures like online monitoring and social auditing, among
others.
Gram SAT pilot projects are being run in some select states of the country and are being
utilised very to reach out development messages directly to the villagers by ensuring community
listening, viewing and linking up large body of villagers.

Tele-Education

GS

The teleeducation programme launched by ISRO, serviced by the exclusive satellite EDUSAT,
is primarily intended for school, college and higher levels of education to support both curricula
based as well as vocational education. With 5 Kuband transponders providing spot beams, and
one Kuband transponder providing national beam, and 6 extended Cband transponders with
national coverage beams, EDUSAT is specifically configured for audiovisual medium, employing
digital interactive classroom and multimedia multicentric system. Many important institutions
such as the IGNOU, UGC, IITs, and many State Education Departments and Universities are
making use of the EDUSAT network. Presently, more than 34,500 classrooms are in the EDUSAT
network out of which 3,400 are interactive terminals.
Satellites can establish the connectivity between urban educational institutions with ad
equate infrastructure imparting quality education and the large number of rural and semiurban
educational institutions that lack the necessary infrastructure. Besides supporting formal educa
tion, a satellite system can facilitate the dissemination of knowledge to the rural and remote
population about important aspects like health, hygiene and personality development and allow
professionals to update their knowledge base as well. Thus, in spite of limited trained and skilled
teachers, the aspirations of the growing student population at all levels can be met through the
concept of teleeducation.

Tele-Medicine

A healthy citizen contributes to make a healthy nation. Over the years, the government has
introduced various healthcare initiatives and policies, which has resulted in the increase in life
expectancy of our citizens. However, providing healthcare to millions of people in rural India
is really a formidable challenge. It is a matter of concern that a meager 3% of the qualified
doctors, who are attached to about 23,000 Primary and 3,000 Community Health Centres, are
available to attend to the 70% of the Indian population. Satellite communication technology,
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combined with information technology provides a technological means of taking the benefits of
the advances in medical sciences to large sections of people spread out in remote and inaccessible
villages.
Telemedicine is a confluence of Communication Technology, Information Technology, Bio
medical Engineering and Medical Science. The Telemedicine system consists of customised hard
ware and software at both the Patient and Specialist doctor ends with some of the Diagnostic
Equipments like ECG, Xray and pathology Microscope/Camera provided at the patient end.
They are connected through a Very Small Aperture Terminal (VSAT) system and controlled by
the Network Hub Station of ISRO. Through a Telemedicine system consisting of simple computer
with communication systems, the medical images and other information pertaining to the pa
tients can be sent to the specialist doctors, either in advance or on a real time basis through the
satellite link in the form of Digital Data Packets. These packets are received at the specialist
centre.

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ISROs telemedicine network has enabled many poor rural villagers hitherto denied with
quality medical services to get the best of medical services available in the country. As of now,
we have 377 telemedicine nodes consisting of 320 remote/ district/ medical college/ mobile
hospitals connected to 57 super specialty hospitals in different cities through ISROs satellites.
The ISRO telemedicine network is expanding to various regions in the country and has become
one of the most visible and sociological applications in the world today.

GS

Mobile Telemedicine Unit consisting of Medical equipment along with Telemedicine hard
ware, software and VSAT system mounted in a Bus/Van can establish a Mobile Telemedicine
centre at any place. The major area of Mobile Telemedicine applications are in the field of Tele
Opthalmology and Community Health. Under Mobile Tele Opthalmology, Rural Eye Camps can
be conducted and the Rural Population can undergo eye screening for Cataract, Glaucoma and
Diabetic Retinopathy. Under Community Health Program, Mobile Telemedicine units are very
useful not only for Disease Prevention but also for Health Promotion in terms of running aware
ness camps & teaching hygienic practices. Village Resource Centres and Telemedicine Recently,
ISRO has also initiated pilot projects for integrating Telemedicine/Telehealth with the Resource
Information database as well as TeleEducation facilities at the Village Resource Centres/Com
munity Centres (VRC) to reach out to more rural areas of the country. The first of the pilot
projects has been implemented in the state of Tamil Nadu wherein the nodal centre operated by
an NGO agency at Chennai is connected to remote villages in three districts and more are to
come in the future.
One of the major advantages of Telemedicine technology has been the saving of cost and
effort to the rural patients as they are not required to travel long distances for obtaining consul
tation and treatment. A study conducted by an independent agency on one thousand patients
in the Chamarajanagar district hospital in Karnataka has revealed that there was a cost saving
of 81% to the patient. That is, the patients who availed the telemedicine consultation and
treatment spent only 19% of the money which they would have otherwise spent if they had to
travel to the nearest cities for a similar treatment. In the case of remote off shore islands, this is
much more significant both to the patient and the Government administration. In such cases, not
only the patients have the cost saving but can be provided with quick and timely medical aid.

Disaster Management Support

India is one of the most disaster prone countries in the world with increasing vulnerability
to cyclones, floods, landslides, droughts and earthquakes. The Disaster Management Support
(DMS) Programme of ISRO, provides timely support and services from aerospace systems, both
[74]

imaging and communications, towards efficient management of disasters in the country. The
DMS programme addresses disasters such as flood, cyclone, drought, forest fire, landslide and
Earthquake. These include creation of digital data base for facilitating hazard zonation, damage
assessment, etc., monitoring of major natural disasters using satellite and aerial data; develop
ment of appropriate techniques and tools for decision support, establishing satellite based reliable
communication network, deployment of emergency communication equipments and R&D to
wards early warning of disasters.
To support the total cycle of disaster/ emergency management for the country, in near real
time, the database creation is addressed through National Database for Emergency Management
(NDEM), a GIS based repository of data. NDEM is envisaged to have core data, hazardspecific
data, and dynamic data in spatial as well as a spatial form.

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Airborne ALTMDC data acquisition is being carried out for the flood prone basins in the
country. The development of flight model of C band DMSAR is nearing completion. SAR data
was acquired over selected basins using Development model of DMSAR. Towards providing
emergency communication for disaster management activities, and at the behest of Ministry of
Home Affairs (MHA), ISRO has set up a satellite based Virtual Private Network (VPN) linking
the National Control Room at MHA with DMSDSC at NRSC, important national agencies, key
Government Offices in Delhi and the Control Rooms of 22 multihazardprone States. Further
ISRO has developed and deployed INSAT TypeD terminals (portable satellite phones), INSAT
based Distress Alert Transmitter (DAT) for fishermen, Cyclone Warning Dissemination System
(CWCS) and DTH based Digital Disaster Warning System (DDWS) in disaster prone areas.
As part of R&D support to DMS for remote sensing applications, work on Tropical Cyclone
Track intensity and landfall prediction, Earthquake Precursor studies, Coastal Vulnerability
mapping and Early Warning of Landslides are being carried out.

GS

The DMS programme is also supporting the many international initiatives by sharing data
and information. Through International Charter Space and Major Disasters and Sentinel Asia
(SA) initiative for supporting disaster management activities in the AsiaPacific region, ISRO is
providing IRS datasets and other information for use during major calamities.
Remote sensing applications

Remote sensing has enabled mapping, studying, monitoring and management of various
resources like agriculture, forestry, geology, water, ocean etc. It has further enabled monitoring
of environment and thereby helping in conservation. In the last four decades it has grown as a
major tool for collecting information on almost every aspect on the earth. With the availability
of very high spatial resolution satellites in the recent years, the applications have multiplied. In
India remote sensing has been used for various applications during the last four decades and has
contributed significantly towards development.
India has its own satellites like Indian Remote Sensing Satellite (IRS) series Resourcesat,
Cartosat, Oceansat etc which provide required data for carrying out various projects. Some of
the important projects carried out in the country include Groundwater Prospects Mapping under
Drinking Water Mission, Forecasting Agricultural output using Space, Agrometeorology and
Land based observations (FASAL), Forest Cover/Type Mapping, Grassland Mapping, Biodiversity
Characterization, Snow & Glacier Studies, Land Use/Cover mapping, Coastal Studies, Coral and
Mangroves Studies, Wasteland Mapping etc. The information generated by large number of
projects have been used by various departments, industries and others for different purposes like
development planning, monitoring, conservation etc.
[75]

Some future programmes:

Space Based Information System for Decentralized Planning (SISDP)

Realizing the potential and capability of remote sensing and GIS for providing cost and
timeeffective resource database, the Planning Commission, Ministry of Panchayati Raj and Ministry
of Rural Development has proposed to prepare District Resource Atlases using remote sensing
and GIS techniques to strengthen various aspects of decentralized district level planning through
a coordinated approach.
The ICT enabled geospatial platform can be formed using space based EO systems and
engaging local bodies for planning and carrying out area developmental activities in a decentral
ized, speedy and transparent manner. The major objectives are:
I.

Spatial depiction of land & water resource along with their attribute information for prepa
ration of District Resource Geospatial Atlas keeping Village Cadastral data as base on seam
less manner for entire country; (States which are already covered may be brought to uniform
standard with respect to content and accuracies),

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II. Development of software tools and utilities (including web based GIS applications and
standalone) for providing multipurpose user driven applications for speedy, accurate and
transparent decision making for district planning.
III. Capacity building in state departments along with training of manpower and capability for
spatial data analysis, which will maintain, update & manage database for decentralized
planning.
Village cadastral maps will be collected, scanned, vectorised and georeferenced to be over
laid onto orthorectified imagery. Attribute data from user departments will be converted into
spatial layer and various customized information system will be developed for use in planning
activity. One node for each state will be created for providing centralized facility for archiving,
organizing, updating and dissemination of information at grassroots level.

GS

The objective of the Space based Information System for Decentralized Planning mission is
to establish and enable the information system comprising of spatial natural resources and non
spatial data towards supporting the districts for the decentralized planning. This GIS database
will be customized to meet the requirements of stake holder departments/concerned in providing
the digital resource atlases and any other requirements of the States based on their problems/
priority/ developmental programme at Village/ Block/ Taluka/ District level. The Mission is
intended to be executed and supported by State Remote Sensing Application Centres / Institutes
/ IT Departments and Industries and ownership of the database and resource information will
be with respective individual stakeholder departments.

88

Debate over MGNREGA: Sustainable Development

V/S Populism

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social
security measure that guarantees of Right to Work to Indian citizen. Enacted by legislation on
25 August 2005; the scheme provides a legal guarantee for at least one hundred days of employ
ment in every financial year to adult members of any rural household willing to do public work
related unskilled manual work at the statutory minimum wage.
It aims at addressing causes of chronic poverty through the works (projects) that are
undertaken and thus ensuring sustainable development. Finally, there is an emphasis on strength
ening the process of decentralization through giving a significant role to Panchayati Raj Institu
tions (PRIs) in planning and implementing these works.
[76]

Key features:
Legal right to work: Unlike earlier employment guarantee schemes, the Act provides a legal
right to employment for adult members of rural households. At least one third beneficiaries
have to be women. Wages must be paid according to the wages specified for agricultural
labourers in the state under the Minimum Wages Act, 1948; unless the central government
notifies a wage rate (this should not be less than Rs 60 per day). At present, wage rates are
determined by the central government but vary across states, ranging from Rs 162 per day
(in Bihar) to Rs500 per day (in Kerala).

Time bound guarantee of work and unemployment allowance: Employment must be pro
vided with 15 days of being demanded failing which an unemployment allowance must be
given.

Decentralized planning: Gram sabhas must recommend the works that are to be under
taken and at least 50% of the works must be executed by them. PRIs are primarily respon
sible for planning, implementation and monitoring of the works that are undertaken

Work site facilities: All work sites should have facilities such as crches, drinking water and
first aid.

Transparency and accountability: There are provisions for proactive disclosure through wall
writings, citizen information boards, Management Information Systems and social audits.
Social audits are conducted by gram sabhas to enable the community to monitor the imple
mentation of the scheme.

Funding: Funding is shared between the centre and the states. There are three major heads
(classification) of expenditure wages (for unskilled, semiskilled and skilled labour), material
and administrative costs. The central government bears 100% of the cost of unskilled labour,
75% of the cost of semiskilled and skilled labour, 75% of the cost of materials and 6% of the
administrative costs. However, in case a state is unable to offer work to an applicant within
stipulated timeperiod, then the unemployment allowance is to borne fully by the state.

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GS

MGNREGA was implemented in phases, starting from February 2006, and at present it
covers all districts of the country with the exception of those that have 100% urban population.
The Act provides a list of works that can be undertaken to generate employment related to water
conservation, drought proofing, land development, and flood control and protection works.
Achievements of MGNREGA:

Ensuring livelihood for people in rural areas.

Large scale participation of women, Scheduled Castes and Scheduled Tribes (SCs/STs) and
other traditionally marginalized sections of society. SCs/STs account for 51% of the total
persondays generated and women account for 47% of the total persondays generated.

Increasing the wage rate in rural areas and strengthening the rural economy through the
creation of infrastructure assets.

Facilitating sustainable development, and

Strengthening PRIs by involving them in the planning and monitoring of the scheme.

CAG report on MGNREGA

Some of the findings of the CAG are highlighted below:
[77]

A. Inefficient Planning
According to the MGNREGA guidelines, the responsibility for the implementation of the
scheme and the primary unit of planning is the Gram Panchayat (GP). The CAG audit however
found a number of inefficiencies with this planning process. These included:

In 1201 GPs (31% of the sampled GPs) across 11 states, annual plans at the GP level were
either not prepared or prepared in an incomplete manner. Interestingly, in 3 states, including
Andhra Pradesh none of the sampled GPs had made annual plans.

District Labour budgets were not prepared in 49 districts (26% of sampled districts).

The CAG also noted significant delays at every level in the submission of the annual plans.
Delays were highest at the GP level difference between the target date of submission to the
block and actual submission ranged from 1 month to as high as 21 months!

B. Shortfall and Delays in Execution of Works

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The effectiveness of the planning has to be measured against the actual execution.
The audit report observed large variations in some states between planned employment
generations (as per the labour budget) and actual employment generated. Moreover, in 14
states and 1 UT , 129.22 lakh works amounting to Rs 126,961.11 crore were approved in the
annual plans but only 38.65 lakh works ( 30% of planned works) amounting to Rs 27,792.13
crore were completed during the audit period indicating significant inefficiencies in imple
mentation of annual plans.

C. Human Resource Shortfall and Capacity

The MGNREGA guidelines envisage Gram Rozgar Sahayaks (GRS) appointed at the village
level to assist the GP in the implementation of the scheme. These GRS are responsible for main
taining all documents, overseeing the process of registration, distribution of job cards, allocation
of works, payment of wages and ensuring monitoring of the scheme through social audits.
The audit report found widespread shortages in GRS posts across 9 states ranging from 20%
in Uttar Pradesh to as high as 93% in Punjab. In 4 states including Tamil Nadu and Kerala
no dedicated GRS had been appointed.

Further, funds for training personnel were highly underutilized in many states. In Uttar
Pradesh for instance, 74% of funds for training in 201011 had not been utilized.

GS

D. Specific problems related to wages and MGNREGA works

Job cards were not issued to 12,455 households in six states. Photographs on 4.33 lakh job
cards (an important identifier against fraud and misrepresentation) were missing in 7 states.
Nonpayment or under payment of wages of Rs 36.97 crores was noticed in 14 states. In 55
GPs, payment was made in cash violating the guidelines which prescribes payment through
banks or post offices. Other issues included, suspected misappropriation of wages through
engagement of ghost works, incomplete or improperly filled muster rolls nonpayment of
unemployment allowance, delays in receipt of wages, amongst others

E. Record Keeping and Monitoring

[78]

The audit found poor record maintenance at not just the GP level but also at the block and
district levels. Deficiencies relating to both nonmaintenance and/or incorrect maintenance
of prescribed basic records were noticed in 18%54% of all tested GPs.

Beneficiary Analysis

While at an all India level the total women beneficiaries is 33% (as per the norm), this ratio
was less than 1/5th in Gujarat, Madhya Pradesh, Odisha, Uttar Pradesh, West Bengal,
Jammu and Kashmir and Mizoram.

On average about 72% of beneficiaries were aware of the number of days of employment to
which they were entitled. Awareness levels were highest in some of the smaller states/UTs
Kerala, Meghalaya, Mizoram, Tripura and Pondicherry. In contrast, it was 28% in Gujarat;
43% in Odisha; 52% in Bihar; and 57% in Maharashtra.

Around 70% of respondents were aware of the timeliness within which wages are to be paid.

Only half of the interviewed beneficiaries were aware of the prescribed quantum of work
which entitled them to full wage payment. Similarly only around 56% were aware of the
manner of wage calculations.

A positive finding was that on average work was provided after 9 days of the job request
(the guidelines say within 15 days of job application). However 99% of beneficiaries who
were not provided work within 15 days were not paid the unemployment allowance.

78% of beneficiaries reported that muster rolls were maintained at the work site and atten
dance was marked on it.

65% reported that they received wages within 15 days, 16% within 1 month, 11 % between
12 months, 4% within 23 months and 2% reported delays of more than 2 months.

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F.

Recommendations of the Standing Committee on Rural Development

The recommendations are as follows:

Regulation of job cards: Offences such as not recording employment related information in
job cards and unlawful possession of job cards with elected PRI representatives and MGNREGA
functionaries should be made punishable under the Act.

Participation of women: Since the income of female workers typically raises the standard of
living of their households to a greater extent than their male counterparts, the participation
of women must be increased through raising awareness about MGNREGA

Participation of people with disabilities: Special works (projects) must be identified for
people with disabilities; and special job cards must be issued and personnel must be em
ployed to ensure their participation.

Utilization of funds: The Committee found that a large amount of funds allocated for
MGNREGA have remained unutilized. For example, in 201011, 27.31% of the funds re
mained unutilized. The Committee recommends that the Department of Rural Development
should analyze reasons for poor utilization of funds and take steps to improve the same. In
addition, it should initiate action against officers found guilty of misappropriating funds
under MGNREGA.

Context specific projects and convergence: Since states are at various stages of socioeco
nomic development, they have varied requirements for development. Therefore, state gov
ernments should be allowed to undertake works that are pertinent to their context. There
should be more emphasis on skilled and semiskilled work under MGNREGA. In addition,
the Committee recommends a greater emphasis on convergence with other schemes such as
the National Rural Livelihoods Mission, National Rural Health Mission, etc.

GS

[79]

Payment of unemployment allowance: Dated receipts for demanded work should be issued
so that workers can claim unemployment allowance. Funds for unemployment allowance
should be met by the central government.

Regular monitoring: National Level Monitors (NLMs) are deployed by the Ministry of Rural
Development for regular and special monitoring of MGNREGA and to enquire into com
plaints regarding misutilisation of funds, etc. The Committee recommends that the fre
quency of monitoring by NLMs should increase and appropriate measures should be taken
by states based on their recommendations. Additionally, social audits must mandatorily be
held every six months. The Committee observes that the performance of MGNREGA is better
in states with effective social audit mechanisms.

Training of functionaries: Training and capacity building of elected representatives and other
functionaries of PRIs must be done regularly as it will facilitate their involvement in the
implementation of MGNREGA.

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The future of MGNREGA is uncertain as the new Government at Center has shown its
inclination towards complete restructuring of the scheme. It has proposed to limit MGNREGA
programmes within tribal and poor areas and programme and is expected to be restricted to
2,500 backward blocks; identified as per the percentage BPL population. Similarly, a change to
labour:material ratio from 60:40 to 51:49 has also been proposed. Fund disbursement has been
reduced by 45%, since the new government has taken charge. In response to these proposals and
changes, a group of leading economists from India and abroad have written a letter to PM to
retain MGNREGA in its original structure and rather work towards stopping the leakages and
construction of productive assets.

GS

They central point of their argument was, Despite numerous hurdles, the MGNREGA has
achieved significant results. At a relatively small cost (currently 0.3% of India's GDP), about 50
million households are getting some employment at NREGA worksites every year. A majority of
NREGA workers are women, and close to half areDalits or Adivasis. A large body of research
shows that the NREGA has wideranging social benefits, including the creation of productive
assets.
On the other hand some analysts argue, MGNREGA belittles the longterm development of
the worker by paying out cash for unproductive labor and discourages skill development which
alone can lead to longterm and sustainable employment of the rural poor. Instead the money
can be used for skill development, e.g., painting, polishing, assembling, packaging, and equip
ment handling, among others, to cite a few. This would enable the poor and needy to become
selfdependent and become a contributor, rather than a burden on exchequer.
The current debate is also important from the point of view of the political viewpoint; as
from the recent election results, people have voted out government that promised social change
through grants, subsidies, and doles. While MGNREGA is not exactly a dole program, the poor
planning by village level authorities and dysfunctional Gram Sabha have made it so as the asset
creation is very poor and the money is just spent on social welfare, instead of rural infrastructure.

89

Why does Indian Fisherman Often Run into

Problem in Indian Ocean?

In a goodwill gesture towards the new PM, Narendra Modi, Pakistan has freed 151 Indian
fishermen while Sri Lanka ordered the release of all detained Indian fishermen on the eve of the
swearingin ceremony of Prime Minister. Most of these prisoners are poor Indian fishermen who
were arrested and brought for trespassing into Pakistani territorial waters.
[80]

Previous releases:
In March, Rajapaksa had ordered the release of arrested fishermen after India abstained
from voting on an antiSri Lanka motion at the UN Human Rights Council in Geneva.
India was one of the 12 nations that abstained from voting on the UNHRC resolution,
which prescribed an international probe into Sri Lanka's alleged rights abuses.
Last year in August, Pakistan had released around 337 Indian prisoners from jails. Later on
Diwali also, 15 Indian fishermen were released as a goodwill gesture. However, many questions
remains answered for the Indian fishermans trouble in high sea.
Issues of fisherman in the sea water:

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The issue of fishermen straying in each others territorial waters has come as a potential
irritant in the bilateral relations between the neighbouring states. Indian fishermen are usually
arrested on charges of trespassing. A total of 600 fishermen from India all from Tamil Nadu
were arrested by the Sri Lankan Navy in 2013, a sharp increase compared to the last few
years.
The issues are discussed as follows:
India and Sri-Lanka

A) There is no well defined boundary line between the two nations.

B) Territorial waters overlap in some areas: Maritime border between the two countries is about
400 kilometres spreading along three different areas: the Bay of Bengal in the north, the Palk
Bay and the Gulf of Mannar in the centre and the Indian Ocean in the south. In the Palk
Bay region, distances between the coasts of the two countries varies between 16 and 45 kms.
This means territorial waters of each country in some areas strays into the others if 12
nautical mile criteria is strictly applied.

GS

C) LTTE issue has raised vigilance: The issue of fishermen came to existence with the emergence
of violent ethnic conflict between the Tamil militants and the Sri Lankan government in the
mid 1980s. Increased vigilance by the Sri Lankan Navy to check intermittent flow of Tamil
refugees into India and flow of arms and supplies to Tamil militant groups made fishing
difficult and risky. Due to these fishermen from both nations suffered.
D) Security concerns: The monitoring is still on which aimed at preventing possible return of
LTTE cadres, who fled from the island during the height of the conflict in 2009, to revive the
insurgency all over again.
Thus the Indian fishermen, who thus far enjoyed monopoly of resourcerich waters, have
now got competitors in massive numbers. At times, this leads to confrontations between the two
fishing communities and in turn drawing intervention of either of naval forces. The main com
plaint of Sri Lankan fishermen has been against Indian mechanised trawlers that indulge in pair,
midwater, pelagic, and bottom trawling severely damaging marine resources and the sea bed.
Ironically, most of the trawlers from Tamil Nadu are owned by merchant capitalists from non
fishing and other social backgrounds. The entry of outsiders has not only threatened the local
customary laws of fishing communities, but also turned several traditional fishermen from own
ers to labourers. Trawler sector in Tamil Nadu is also politically influential and financially sound
making it more obdurate to solutions that could cut down its profit margins.
[81]

(E) Historical perspective: Both Indian and Sri Lankan fishermen have been fishing into Palk Bay
area for centuries. Problem emerged only after a maritime agreement was signed by India
and Sri Lanka in 1974. In fact, initially the 1974 border agreement did not affect fishing on
either sides of the border. In 1976, through an exchange of letter, both India and Sri Lanka
agreed to stop fishing in each others waters. However, the agreement could not stop the
fishermen from fishing in these waters, as fishermen know no boundary. They go wherever
they can get maximum number of catch. They, knowingly or unknowingly, often violate the
International Maritime Boundary Lines in search of a good catch, at times at great
personal risk.

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Both India and Sri Lankan fishermen have been known for entering into each others
waters. However, cases of arrest of Sri Lankan fishermen by Indian authorities are comparatively
less since they mostly fish in the high seas by using multiday crafts. On the other hand, due to
the dearth of multiday fishing capability, Indian fishermen cannot shift their fishing effort from
the Palk Bay area to the offshore areas of the Indian waters or way beyond the continental shelf.
Therefore, Indian fishermen have no other option but to fish into the Sri Lankan waters. While
for the Sri Lankan authorities protecting their maritime boundary is important, for the Indian
fishermen the priority is of securing their livelihood.
It is noteworthy that despite the signing of maritime boundary agreements, fishermen com
munities of both the countries continued their fishing in the Palk Bay area peacefully until the
Eelam war broke out in 1983. Nonetheless, after the end of War in 2009, the Sri Lankan fish
ermen have been raising their objection to Indian fishermen fishing in their waters.
Thus, the main problem with Indian fishermen is that a large number of them are depen
dent on fishing in Sri Lankan waters, which is prohibited by the 1976 Maritime Boundary
Agreement. Also, a large number of Indian fishermen are dependent on trawling which is
banned in Sri Lanka.
India and Pakistan:

GS

The practice of apprehending each other's fishermen, along with their boats, has been
followed by Pakistani and Indian forces since the time of the partition. The Maritime Security
Agency (MSA) of Pakistan is responsible for the arrest of Indian fishermen when they reportedly
enter Pakistani waters while for India, the Coast Guard, Border Security Force(BSF), Customs or
the Indian navy does the same to Pakistani fishermen.
Most trespassing is common to Pakistani and Indian fishermen operating along the coastline
of the Indian state of Gujarat and the Pakistani province of Sindh. Most violations occur due to
the absence of a physical boundary between the nations. The problem is aggravated by the
dispute over the Sir Creek in Kutch and the failure to officially determine the maritime boundary
between the two nations. Most local fishermen possess no navigational tools and are unable or
incapable of determine their location by longitudes or latitudes.
Further the punishment for crossing into the other country's water by fishing boats may be
imprisonment for a few months but due to the hostility between the establishments/ruling classes
of these countries, the fishermen languish for years in detention centers even after completing
their imprisonment.
Steps taken:
The Indian government has undertaken a census of fishermen, preparing a database of
information on fishermen and their boats to be used for more effective monitoring of fishing
activities. The Indian Coast Guard has also begun installing tracking devices in fishing boats
operating in the waters, developed by the ISRO, the tracking device has the ability to send out
[82]

alerts for fires on board, a sinking vessel, a medical emergency and when the boat is appre
hended by another country.
Possible solutions:
a) Avoid shooting incidents due to mistaken identity, coordinated patrolling between ma
rine forces
b) Developing fish farming extensively in Indian waters would prevent its fishermen from
venturing into other waters in search of a big catch.
c)

India can also consider leasing fishing blocks, especially those identified as surplus total
available catch, from Sri Lanka.

d) To preserve marine resources, impose strict and complete ban on mechanized trawlers.
e)

Proper fisheries resource management.

f)

Educate the Indian fishermen to keep to the Indian side in the high sea.

Tension on Articel 370 Between J&K Based Parties

and Centre

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90

Article 370 provides the special status to the state of Jammu and Kashmir. Though, the
special status has always been debatable, recently a tension row started between J&K based
parties and Central Government after a statement of Dr Jitender Singh, Minister of State in
Government of India, that Cabinet is in the process of repealing Article 370.

About Article 370:

GS

This procedure, however, requires Jammu and Kashmir legislative assemblys consent and
a unilateral decision for its removal cannot be taken. The repealing of Article 370 of the Consti
tution has been a poll promise of the BJP. The BJP has been opposing the special status for Jammu
and Kashmir for a long time. It has earlier claimed that it could not repeal Article 370 during
the NDA government of 19992003 due to lack of majority. Since BJP has received a majority this
time in parliament, the tensions have escalated to new heights.

According to the Constitution of India, Article 370 provides temporary provisions to the
state of Jammu and Kashmir, granting it special autonomy. The article says that the provisions
of Article 238, which was omitted from the Constitution in 1956 when Indian states were
reorganized, shall not apply to the state of Jammu and Kashmir.
When India became independent, the state of Jammu and Kashmir was not part of its
territory. Following a tribal invasion by (NorthWest Frontier Province) NWFP raiders on October
22, 1947, Maharaja of Jammu and Kashmir Hari Singh asked for troops from India to assist. In
turn of getting assistance from India, the instrument of accession was signed. However, it was
limited to a number of matters, including Defence, External Affairs, Communications and some
other issues, with respect to which the Indian legislature could make laws for Jammu and
Kashmir.
Salient features:
Parliament or the Union Legislature has very limited jurisdiction in case of J&K as compared
to other states. Residuary powers, unlike other states, rest with J&K. The Parliament has no
power to legislate Preventive Detention laws for the state; only the state legislature has the
power to do so.
[83]

Under Article 370, the Centre has no power to declare financial emergency under Article 360
in the state. It can declare emergency in the state only in case of war or external aggression.
The Union government can therefore not declare emergency on grounds of internal distur
bance or imminent danger unless it is made at the request or with the concurrence of the
state government.

Part IV (dealing with Directive Principles of the State Policy) and Part IVA (dealing with
Fundamental Duties) of the Constitution are not applicable to J&K. In addition to other
fundamental rights, Articles 19(1)(f) and 31(2) of the Constitution are still applicable to J&K;
i.e., the Fundamental Right to property is still guaranteed in this state.

The High Court of J&K has limited powers as compared to other High Courts within India.
It cant declare any law unconstitutional. Unlike High Courts in other states, under Article
226 of the Constitution, it cant issue writs except for enforcement of Fundamental Rights.

Urdu is the official language of the state

Certain special rights have been granted to the permanent residents of J&K with regard to
employment under the state, acquisition of immovable property in the state, settlement in the
state, and scholarship and other forms of aid as the state government may provide.

J&K citizens have an implicit dual citizenship, I.e., though there is no specific provision of
dual citizen, there are certain rights that only an original resident of Kashmir enjoy. Even the
voters lists for State elections and for Parliament elections are not common.

Consequences of Article 370:

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Article 370 bars the non subjects/ people from outside the state to buy immovable as well
as movable property here, set any industry or manufacturing unit, while no other state bars
any state subject of J&K to invest there, acquire land or set business establishment.

Article 370 act as obstacle in attracting the flow of investment from big business houses
which are running mega projects and giving employment to thousands of educated youth
according to their academic, professional, skilled, and non skilled capabilities.

Due to this lack of job avenues to the educated unemployed youth of state is forcing them
to move out to other states for finding suitable source of bread earning. If this silent migration
of youth continues, it will convert the state into a land of old and aged people in next 15
20 years, which is indeed a very serious matter and need to be taken note of by the govern
ment.

Unemployment in J&K has promoted militancy. A poor youth after completing education
with limited resources, after sitting idle for long, gets easily lured by the people who push
them into antinational activities by giving few thousands of rupees.

Article 370 is a source of gender bias in disqualifying women from the State of property
rights.

Article 370 was and is about providing space, in matters of governance, to the people of a
State who felt deeply vulnerable about their identity and insecure about the future. It was
about empowering people, making people feel that they belong, and about increasing the
accountability of public institutions and services. Article 370 is synonymous with decentrali
zation and devolution of power, phrases that have been on the charter of virtually every
political party in India.

[84]

GS

91

Skill Development in India

Education is the single most important instrument for social and economic transformation.
A well educated population, adequately equipped with knowledge and skill is not only essential
to support economic growth, but is also a precondition for growth to be inclusive since it is the
educated and skilled people who stand to benefit most from the employment opportunities
which growth provides.
Skills and knowledge are the driving forces of economic growth and social development for
any country. Countries with higher and better levels of skills adjust more effectively to the
challenges and opportunities of world of work. As India moves progressively towards becoming
a knowledge economy it becomes increasingly important that the country should focus on
advancement of skills and these skills have to be relevant to the emerging economic environment.
Skill Development Landscape in India

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India is one of the few countries in the world where the working age population will be far
in excess of those dependent on them and as per the World Bank, this will continue for at least
three decades till 2040. This has increasingly been recognized as a potential source of significant
strength for the national economy, provided we are able to equip and continuously upgrade the
skills of the population in the working age group.

GS

If India wants to become a manufacturinghub, given its requirement for employment gen
eration to reap the demographic advantage; it must focus on skill development instead of present
education system. Since, Indias education system has been skewed in favour of formal education
focusing on academics; it has done well in services/tertiary sector. As this sector is the most
important recipient of formally educated workforce. Manufacturing processes, on the other
hand, does not require academic skills to that extent, for majority of workforce. As a result, the
people employed in this sector are either uneducated or unskilled as lowend firms cant afford
college graduates; or they are overeducated and yet unskilled at the task required, in case of
firms that can pay. The education required for manufacturing is very basic that enables a person
to read and understand instructions and make basic calculations; while the skills actually re
quired vary from painting, welding, polishing, assembling, packaging, and equipment handling,
among others. Thus, a complete overhaul of the existing education system is required.
In recognition of these needs, the Government of India has adopted skill development as a
national priority over the next 10 years. The Eleventh Five Year Plan detailed a roadmap for skill
development in India, and favoured the formation of Skill Development Missions, both at the
State and National levels. To create such an institutional base for skill development in India at
the national level, a Coordinated Action on Skill Development with a threetier institutional
structure consisting of the PMs National Council on Skill Development, the National Skill De
velopment Coordination Board (NSDCB) and the National Skill Development Corporation (NSDC)
was created in early 2008.
The main functions of the PMs National Council on Skill Development are as under:

To lay down overall broad policy objectives, financing, and governance models and strategies
relating to skill development.

To review the progress of schemes and guide on midcourse corrections, additions, and
closure of parts or whole of any particular programme/scheme.

Coordinate Public Sector / Private Sector Initiatives in a framework of collaborative action.

[85]

The NSDCB coordinates the skill development efforts of a large number of Central Minis
tries/Departments and States. The National Skill Development Corporation (NSDC) is a Public
Private Partnership, set up to catalyze the settingup of large scale, forprofit sustainable voca
tional institutions in the country, by encouraging private sector participation and providing low
cost funding for training capacity. In addition, it is expected to fund supporting systems such as
quality assurance, labor market information systems and trainthetrainer facilities. Thus, the
threetier structure together facilitates implementation of skill development on the ground through
three main channels central ministries, the state governments, and private and public training
organizations.

SC
OR
E

In the Central Government, around 20 Ministries are closely involved in skill development.
These ministries mainly operate in one of two ways through setting up own training capacity
in specific sectors (examples of such ministries include Ministry of Labor and Employment,
Ministry of Agriculture, and Ministry of Health and Family Welfare, etc) or through providing
pertrainee costs of training for specific target populations (examples of such ministries include
Ministry of Rural Development, Ministry of Women and Child Development etc).
Most State Governments also have set up State Skill Development Missions as nodal bodies
to anchor the skill development agenda in the State. SSDMs are expected to play a significant
role in escalating the pace of skilling, through identification of key sectors for skill development
in the State, as well as coordinating with Central Ministries and State Line Departments, as well
as industry and private training organizations. Each State has adopted a structure of SSDM that
best suits the local environment and the State vision for skill development. While some States
have elected to form the SSDM as a Society or Corporation under the Chief Secretary or Chief
Minister, others have housed it under relevant Departments such as Labour, Human Resource
Development, or Planning. Many states are starting to set yearwise targets for skill development,
specifying the state budgetary allocation, and complementing Government efforts by encourag
ing private investment.
Issues and reforms needed in Skill development

GS

a) In education system

The current education system does not focus on training young people in employable skills
that can provide them with employment opportunities. Today, a large section of Indias labor
force has outdated skills. With current and expected economic growth, this challenge is going to
only increase further, since more than 75% of new job opportunities are expected to be skill
based.
Framework for the creation of an efficient education delivery model should include:

Availability

The capacity of just over four million a year needs to be upgraded substantially in order to
meet the targeted skill requirements till 2022. There exist a significant mismatch between the
massive populace of unemployed youth and existing vacancies, which leads to low employability
quotient of people. It is therefore a critical step to focus on the needs of both learners and the
labor market in order to make the requisite kinds of skills available by forging partnerships
between public administrators, suppliers of educational services, industry, and civil society. The
availability of both physical infrastructure and human resource (teachers) to impart skillbased
training forms the basic requirement of a learner, which should be addressed in an effective
manner.
[86]

Accessibility

The accessibility of skillbased training faces a huge challenge on account of Indias large
geographical territory, difficult terrain and varying social economic conditions. Some of the states
have limited access to such training. As a result, the population comprises a large unskilled
workforce. Significant disparities exist across states in terms of socioeconomic factors such as
education levels, income levels, and industrial growth, etc. A significant portion of the popula
tion below the poverty line cannot afford even basic amenities, leave aside education and train
ing. It is important that there is a focus on the informal sector, which reaches out to the people
and livelihood promotion institutions.

Adaptability

SC
OR
E

The economic growth over the years has only brought forth the shortcomings of skill devel
opment processes. Learners require a national vocational qualification framework that offers
vertical mobility for those pursuing skills and enables learners to shift from skillbased training
to academics and vice versa. They need a clear vocational qualification framework for compe
tency standards, affiliation and accreditation. The required framework will integrate skill train
ing with academic standards. A more formalized structure for vocational training will also help
elicit greater respect and acceptability for this initiative among the beneficiaries and the society
at large.
Acceptability

The skill development programs being imparted to learners should meet their needs in terms
of quality of infrastructure (ICT and physical infrastructure), pedagogy and skill delivery meth
ods.
The current education system does not lead to trained young people in employable skills
who are open to immediate employment opportunities. With current and expected economic
growth, this problem is expected to aggravate as more than 75% of the new job opportunities
are expected to be skillbased.

b) In industry sector

GS

As a result, there is a need to develop an advanced curriculum framework derived from

industry best practices. It is equally critical to use these upcoming and widely used learning
approaches to design skill development programs in order to train learners with what is relevant
and not obsolete.

Many firms provide onjob training to their workers. This may take different forms: one, the
workers may be trained in the firm under the supervision of a skilled supervisor; two, the
workers may be sent for offcampus training. In both these cases firms incur some expenses.
Firms will, thus, insist that the workers should work for a minimumspecific period of time, after
their onthejob training, during which it can recover the benefits of the enhanced productivity
owing to the training. But the retention ratio is low thus private and Industry Participation in
skill development is lacking. There are no incentives for private players to enter the field of
vocational education. Present regulations are very rigid. Inservice training is required but not
prevalent today. There is no opportunity for continuous skill upgradation. There is a lack of
experienced and qualified teachers to train students on vocational skills.
c)

Low women participation

Women participation in vocational education and training is especially low as compared to

men. There are a few reasons constraining interest/participation may be social and cultural
[87]

norms and family responsibilities. Women also tend to become discouraged due to such family
and social pressures, especially in rural areas. Therefore, in order to increase enrolments, the
combined efforts with local NGOs and Panchayats on informing women and their families on
the advantages of vocational education, which may lead to employability, is very important.
Specifically, women should be targeted by explaining how inculcating incomegenerating skills
and activities within them would subsequently lead to improving their social and economic
status.

SC
OR
E

Thus, there is a need for concerted action in several key areas in order to ensure that skill
formation takes place in a demand driven manner. Curriculum for skill development has to be
reoriented on a continuing basis to meet the demands of the employers/industry and align it
with the available selfemployment opportunities. Accreditation and certification system has to
be improved. There is a need to establish an institutional mechanism for providing access to
information on skill inventory and skill maps on a real time basis. A sectoralapproach is required
for the purpose with special emphasis on those sectors that have high employment potential.
Standards may be set by the industryled sector skill councils which must be made effective
during the Twelfth Plan, while the accreditation of certification processes should be done by
independent, specialised agencies with certification left to the institutions. Skill Development
Centres can be established in existing education and training institutions. This would ensure
huge saving in cost and time. A system of funding poor people for skill development through
direct financial aid or loan also needs to be put in place. Apprenticeship training as another
mode for onjob training has to be remodeled to make it more effective and upscaled signifi
cantly.

GS

Finally vocational education at the school level and vocational training through Industrial
Training Institutes (ITIs) and Industrial Training Centres (ITCs) need significant expansion and
overhaul. There is an urgent need to revisit the scheme for upgradation of governments ITIs as
Centres of Excellence through the PPP to implement it more effectively during the Twelfth Plan.
There is a need for establishing flexible learning pathways integrated to schooling on one end
and higher education on the other through National Vocational Education Qualification Frame
work (NVEQF). PublicPrivate Partnerships in financing, service delivery, and provision of
workspaces and training of trainers should be promoted. Employment exchanges can be repo
sitioned as outreach points. There is a need for removal of entrybarriers to private participation,
while putting in place an effective regulatory framework for coordinating the network of Private
players, as also for monitoring, evaluating, and analyzing outcomes of various programmes. All
these issues have received thoughtful consideration during the Eleventh Plan; now operational
details have to be worked out and specific initiatives launched during the Twelfth Plan.
The task of skill development has many challenges in India which include:a) Increasing capacity & capability of existing system to ensure equitable access to all.
b) Promoting lifelong learning, maintaining quality and relevance, according to changing re
quirement particularly of emerging knowledge economy.
c)

Creating effective convergence between school education, various skill development efforts of
government and between government and Private Sector initiative.

d) Capacity building of institutions for planning, quality assurance and involvement of stake
holders.
e)

Creating institutional mechanism for research development quality assurance, examinations

& certification, affiliations and accreditation.

f)

Increasing participation of stakeholders, mobilizing adequate investment for financing skill

development, attaining sustainability by strengthening physical and intellectual resources.

[88]

92

Perspectives on India - China Bilateral Trade

On 1 April, 1950, India became the first nonsocialist bloc country to establish diplomatic
relations with the Peoples Republic of China. Prime Minister Nehru visited China in October
1954. While, the IndiaChina border conflict in 1962 was a serious setback to ties, but since 1991
reforms, the engagement has evolved more in terms of economic aspects. India & China signed
a Trade Agreement in 1984 which provided for Most Favored Nation Treatment and later in
1994, the two countries signed an agreement to avoid double taxation.
When India initiated its comprehensive reforms in 1991, the level of bilateral trade between
the two countries was insignificant as the trade basket was restricted to a limited number of
products. However, within a short period, China has become Indias single largest trading part
ner even though India itself has reached at an unsustainable bilateral trade deficit of US$ 26.3
billion in 2010.
Pattern of India China Bilateral Trade

SC
OR
E

Indian Exports

The principal items of Indian exports to China are ores, slag and ash, iron and steel, plastics,
organic chemicals, and cotton. In order to increase the extent of exporting Indian goods to China,
however, there should be a special emphasis on investments and trade in services and knowl
edgebased sectors. The other potential items of trade between India and China are marine
products, oil seeds, salt, inorganic chemicals, plastic, rubber, optical and medical equipment, and
dairy products. Great potential also exists in areas like biotechnology, IT and ITES, health,
education, tourism, and financial sector.
Chinese Exports

GS

The main items that comprise Chinese exports to India are electrical machinery and equip
ment, cement, organic chemicals, nuclear reactors, boilers, machinery, silk, mineral fuels, and
oils. Value added items like electrical machinery dominates Chinese exports to India. This exhib
its that Chinese exports to India are fairly diversified and includes resourcebased products,
manufactured items, and low and medium technology products.
Drivers of bilateral trade

There are two primary drivers of the burgeoning trade between China and India: differing
comparative advantages of the two countries and sustained, high growth rates in both econo
mies.

Comparative advantage

The different comparative advantage of the two countries provide grounds for strong eco
nomic exchange. Although Chinas economy is three times as large as Indias, its manufacturing
sector is five times that of Indias. Chinese exports to India thus consist primarily of manufac
tured goods, especially various types of machinery. Conversely, India has some of the worlds
largest reserves of iron ore, bauxite, and manganese, and its exports to China consist primarily
of raw materials to feed that countrys expanding steel and automotive sectors. Services trade
between China and India remains small. Though India has emerged as a global powerhouse in
information technology (IT) and ITenabled services, language differences create natural barriers
to the export of these services from India to China. Thus, many of Indias larger IT companies
invest directly in local operations within China.
[89]

Rapid economic growth

The sheer size and growth rates of these economies have boosted bilateral trade, as bigger
economies have more to buy and sell. In 2013, Chinas economy grew 7.7 percent and Indias
grew 5.0 percentboth faster than any other major economy in the world. The two countries
could also remain the worlds two fastestgrowing economies for the next two to three decades.
In this context, the prospects for continued strong growth in bilateral trade appear to be bright.
Imports of lowerpriced capital goods from China, such as turbines for electric utilities, can
help India address the infrastructure bottlenecksespecially in roads, highways, ports, and
electric powerthat have appeared as Indias manufacturing revolution gets under way. Be
cause Chinese capital goods are often much cheaper than those from Western or Japanese
manufacturers, such imports from China can keep costs low, allowing India to modernize and
upgrade its infrastructure more quickly.
Highlights:
IndiaChina total trade in goods for year 2012 stood at 66.57 billion, recording a decline of
almost 10%

Indias exports to China for 2012 reached US$ 18.8 billion, recording a decline of more
almost 20% yoy. This decline can be attributed to decrease in the exports of ores, slag and
ash (about59%), plastics and articles thereof (about 5%), electrical machinery, sound equip
ment, etc. (about 14%) and iron & steel (about 20%). Ores, slag and ash; cotton & yarn,
fabric; copper and articles; precious stones; organic chemicals; plastic and articles; salt, sul
fur, earth & stone; nuclear reactors, boilers, machinery, etc. continued to dominate the
Indian export basket. Among the products exported from India to China, iron ores, slag and
ash and cotton, including yarn and fabric together constituted a dominant share of 45%.

Chinas exports to India for 2012 China touched a total of US$ 47.75 billion, recording a
decline of more than 5% over the figure for 2011. The decline in Chinas exports to India can
be attributed to decrease in the exports of nuclear reactors, boilers, machinery, etc. (about
10%), electrical machinery, sound equipment (about 7%), fertilizers (about 16%), articles of
iron & steel (about 16%) and iron & steel (about 22%). Nuclear reactors, boilers, machinery;
electric machinery, sound equipment; organic chemicals; fertilizers; articles of iron or steel
dominated the Indian import basket from China.

Trade deficit for India for 2012 stood at US$ 29 billion.

GS

SC
OR
E

As China emerges the largest trading partner of India, there are bilateral issues that require
close scrutiny. The most important issue is that of trade imbalance.
India's trade deficit with China has jumped from a mere $1.08 billion in 20012 to a whop
ping $40.77 billion in 20123 as Beijing has been shipping highvalue engineering and electronic
goods to the domestic market while New Delhi in return has been exporting lowvalue goods
such as iron ore.
India has been unsuccessfully pushing for more access to the Chinese market for its goods
even as the huge trade imbalance has only been worsening over the years. While the bilateral
trade between has gone up from $2.09 billion in 20012 to $67.83 billion during 20123, it is
China, which has been the beneficiary as its highvalue goods such as telecom and power
equipment find a ready market in India, and its flood of cheap electronic goods only make
matters worse.
[90]

The decline in exports can be attributed to decrease in the exports of iron ores, cotton raw
including waste, plastics & linoleum products, petroleum (crude & products), electronic goods,
drugs & pharmaceutical products, transport equipments, gems & Jewellary, chemicals & allied
products etc. The decline in imports from China can be attributed to decrease in the imports
of machinery except electrical & electronics, project goods, iron & steel, transport equipment,
gold, petroleum, crude & products, nonferrous metals, inorganic chemicals, chemical material
& products, machine tools etc. The decline in bilateral trade can be attributed to overall negative
global sentiment because of economic recession and low demand all over the world. Ban of
exports of ironore from Karnataka and Goa has also contributed to decline in Indias exports to
China.

SC
OR
E

To meet the issue, India and China have signed three Memorandum of Understandings
(MoUs) on buffalo meat, fisheries, and pharmaceuticals, and one agreement on feed and feed
ingredients. These MoUs will address the growing trade deficit between the two countries. A
MoU for the export of buffalo meat from India to China was signed between Chinese General
Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) and Indias Agricul
tural and Processed Food Products Export Development Authority (APEDA). The export of
buffalo meat is not allowed from India to China and this has been a long pending issue between
two countries. With the resumption of trade, India hopes a big merchandise trade that will not
only be helpful in reducing trade imbalance of India but also in Chinas food security by provid
ing quality and hygiene meat products.
The Marine Products Export Development Authority (MPEDA) and AQSIQ signed a MoU
on cooperation for import and export trade of fishery products. The MoU aims to institutionalize
cooperation in promoting trade of fishery products and healthy development of trade between
India and China. India is expecting more exports to China through this cooperation.

GS

A MoU was also signed between Pharmaceuticals Export Promotion Council of India
(Pharmexcil) and The China Chamber of Commerce for Import and Export of Medicines and
Health Products (CCCMHPIE). India has been finding it difficult to expand its trade with China
in the pharmaceutical sector. The signing of the MoU is expected to facilitate access to the China
market in pharmaceuticals. The average imports of medicinal and pharmaceutical products from
China during last five years were USD 4332.37 million visvis exports from India of USD
692.44 million.
An agreement was also signed between Export Inspection Council of India (EIC) and AQSIQ
on trade and safety of feed and feed ingredients. India hopes a big merchandise trade for feed
& feed ingredients after the resumption of trade as China has suspended import of feed and feed
ingredients since January 1, 2012.
The Government of India has also formulated a strategy paper for diversifying the product
basket as well as the traditional markets for exports from India. The strategy focuses on moving
up the value chain in respect of traditional Indian exports of Engineering, Textiles, and Gems &
Jewellery with special focus on nontraditional sectors like leather, electronics and chemicals
where there is a lot of potential for export from India. Focus Market Scheme is designed for
diversifying Indias exports to different markets. A variant of this is the Market Linked Focus
Product Scheme. Export to such markets is given benefit in the form of Duty Credit Scrip.

93

Transgender Rights in India

Transgender people are individuals of any age or sex whose appearance, personal charac
teristics, or behaviors differ from stereotypes about how men and women are supposed to be.
Transgender people have existed in every culture, race, and class since the story of human life
has been recorded. The contemporary term transgender arose in the mid1990s from the
grassroots community of genderdifferent people. In contemporary usage, transgender has be
[91]

come an umbrella term that is used to describe a wide range of identities and experiences,
including but not limited to transsexual people; male and female crossdressers (sometimes re
ferred to as transvestites, drag queens or drag kings); intersexed individuals; and men and
women, regardless of sexual orientation, whose appearance or characteristics are perceived to be
gender atypical. In its broadest sense, transgender encompasses anyone whose identity or behav
ior falls outside of stereotypical gender norms. That includes people who do not selfidentify as
transgender, but who are perceived as such by others and thus are subject to the same social
oppressions and physical violence as those who actually identify with any of these categories.
Other current synonyms for transgender include gender variant, gender different, and gender
nonconforming.
In India there are a host of socio cultural groups of transgender people like hijras/ kinnars,
and other transgender identities like shivshaktis, jogtas, jogappas, Aradhis, Sakhi, etc. How
ever, these sociocultural groups are not the only transgender people, but there may be those who
do not belong to any of the groups but are transgender persons individually.

SC
OR
E

Constitutional rights of transgender people

Preamble to the Constitution mandates Justice social, economic, and political equality of
status.
Thus the first and foremost right that they are deserving of is the right to equality under
Article 14. Article 15 speaks about the prohibition of discrimination on the ground of religion,
race, caste, sex or place of birth. Article 21 ensures right to privacy and personal dignity to all
the citizens. Article 23 prohibits trafficking in human beings as beggars and other similar forms
of forced labor and any contravention of these provisions shall be an offence punishable in
accordance with law.

GS

The Constitution provides for the fundamental right to equality, and tolerates no discrimi
nation on the grounds of sex, caste, creed or religion. The Constitution also guarantees political
rights and other benefits to every citizen. But the third community (transgenders) continues to
be ostracized. The Constitution affirms equality in all spheres but the moot question is whether
it is being applied.
As per the Constitution most of the protections under the Fundamental Rights Chapter are
available to all persons with some rights being restricted to only citizens. Beyond this categori
zation the Constitution makes no further distinction among rights holders.
But official identity papers provide civil personhood. Among the instruments by which the
Indian state defines civil personhood, sexual (gender) identity is a crucial and unavoidable
category. Identification on the basis of sex within male and female is a crucial component of civil
identity as required bythe Indian state. The Indian state's policy of recognizing only two sexes
and refusing to recognize hijras as women, or as a third sex (if a hijra wants it), has deprived
them at a stroke of several rights that Indian citizens take for granted. These rights include the
right to vote, the right to own property, the right to marry, the right to claim a formal identity
through a passport and a ration card, a driver's license, the right to education, employment,
health so on. Such deprivation secludes hijras from the very fabric of Indian civil society.
Problems faced by transgender
The main problems that are being faced by the transgender community are of discrimina
tion, unemployment, lack of educational facilities, homelessness, lack of medical facilities: like
HIV care and hygiene, depression, hormone pill abuse, tobacco and alcohol abuse, penectomy,
and problems related to marriage and adoption.
[92]

In 1994, transgender persons got the voting right but the task of issuing them voter identity
cards got caught up in the male or female question. Several of them were denied cards with
sexual category of their choice.
The other fields where this community feels neglected are inheritance of property or adop
tion of a child. They are often pushed to the periphery as a social outcaste and many may end
up begging and dancing. This is by all means human trafficking. Sometimes running out of all
options to feed themselves, they even engage themselves as sex workers for survival.
Transgenders have very limited employment opportunities. Transgenders have no access to
bathrooms/toilets and public spaces. The lack of access to bathrooms and public spaces access
is illustrative of discrimination faced by transgenders in availing each facilities and amenities.
They face similar problems in prisons, hospitals and schools.

GS

SC
OR
E

Most families do not accept if their male child starts behaving in ways that are considered
feminine or inappropriate to the expected gender role. Consequently, family members may threaten,
scold or even assault their son/sibling from behaving or dressingup like a girl or woman. Some
parents may outright disown and evict their own child for crossing the prescribed gender norms
of the society and for not fulfilling the roles expected from a male child. Parents may provide
several reasons for doing so: bringing disgrace and shame to the family; diminished chances of
their child getting married to a woman in the future and thus end of their generation (if they
have only one male child); and perceived inability on the part of their child to take care of the
family. Thus, later transgender women may find it difficult even to claim their share of the
property or inherit what would be lawfully theirs. Sometimes, the child or teenager may decide
to run away from the family not able to tolerate the discrimination or not wanting to bring
shame to one's family. Some of them may eventually find their way to Hijra communities. This
means many Hijras are not educated or uneducated and consequently find it difficult to get jobs.
Moreover, it is hard to find people who employ Hijras/TG people. Some members of the society
ridicule gendervariant people for being 'different' and they may even be hostile. Even from
police, they face physical and verbal abuse, forced sex, extortion of money and materials; and
arrests on false allegations. Absence of protection from police means ruffians find Hijras/TG
people as easy targets for extorting money and as sexual objects. A 2007 study documented that
in the past one year, the percentage of those MSM and Hijras who reported: forced sex is 46%;
physical abuse is 44%; verbal abuse is 56%; blackmail for money is 31%; and threat to life is 24%.
Hijras face discrimination even in the healthcare settings. Types of discrimination reported
by Hijras/TG communities in the healthcare settings include: deliberate use of male pronouns
in addressing Hijras; registering them as 'males' and admitting them in male wards; humiliation
faced in having to stand in the male queue; verbal harassment by the hospital staff and copatients;
and lack of healthcare providers who are sensitive to and trained on providing treatment/care
to transgender people and even denial of medical services. Discrimination could be due to
transgender status, sex work status or HIV status or a combination of these.
Social welfare departments provide a variety of social welfare schemes for socially and
economically disadvantaged groups. However, so far, no specific schemes are available for Hijras
except some rare cases of providing land for Aravanis in Tamil Nadu. Recently, the state gov
ernment of Andhra Pradesh has ordered the Minority Welfare Department to consider 'Hijras'
as a minority and develop welfare schemes for them. Stringent and cumbersome procedures and
requirement of address proof, identity proof, and income certificate hinders even the deserving
people from making use of available schemes. In addition, most Hijras/TG communities do not
know much about social welfare schemes available for them. Only the Department of Social
Welfare in the state of Tamil Nadu has recently established 'Aravanigal/Transgender Women
Welfare Board' to address the social welfare issues of Aravanis/Hijras. No other state has rep
licated this initiative so far.
[93]

The Supreme Court judgement on Transgender Rights

This judgement covers persons who want to identify with the third gender as well as
persons who want to transition from one identity to another, i.e. to male to female or vice versa.
The Court has directed Centre and State Governments to grant legal recognition of gender
identity whether it be male, female or third gender.
Legal Recognition for Third Gender: In recognizing the third gender category, the Court
ruled that fundamental rights are available to the third gender in the same manner as they
are to males and females. Further, nonrecognition of third gender in both criminal and civil
statutes such as those relating to marriage, adoption, divorce, etc is discriminatory to the
third gender.

Legal Recognition for people transitioning within male/female binary: As for how the actual
procedure of recognition will happen, the Court merely states that they prefer to follow the
psyche of the person and use the Psychological Test as opposed to the Biological Test. They
also declare that insisting on Sex Reassignment Surgery (SRS) as a condition for changing
one's gender is illegal.

Public Health and Sanitation : Centre and State Governments have been directed to take
proper measures to provide medical care to Transgender people in the hospitals and also
provide them separate public toilets and other facilities. Further, they have been directed to
operate separate HIV/ Serosurveillance measures for Transgenders.

Socio-Economic Rights : Centre and State Governments have been asked to provide the
community various social welfare schemes and to treat the community as socially and eco
nomically backward classes. They have also been asked to extend reservation in educational
institutions and for public appointments.

Stigma and Public Awareness : These are the broadest directions Centre and
StateGovernments are asked to take steps to create public awareness so that Transgender
people will feel that they are also part and parcel of the social life and not be treated as
untouchables; take measures to regain their respect and place in society; and seriously ad
dress the problems such as fear, shame, gender dysphoria, social pressure, depression, sui
cidal tendencies, and social stigma.

Challenging 377: The judgment contradicts the findings of the Supreme Court in Suresh
Kumar Koushal in various ways. The main points include:

GS

SC
OR
E

I.

The judgement notes that Section 377, though associated with specific sexual acts, high
lighted certain identities, including Hijras. It also recognises that sec 377 has been used
as an instrument of harassment and physical abuse against Hijras and transgender
persons. The judgment only says that this amounts to a misuse of the Section as opposed
to what it actually dictates, thus refusing to meaningfully apply a fundamental rights
analysis to it. Now we have a clearly contradictory finding.

II. It argues against Koushal's infamous miniscule minority argument noting that Transgen
ders, even though insignificant in numbers, are still human beings and therefore they
have every right to enjoy their human rights.
III. The Court finds that discrimination on grounds of sexual orientation and gender identity
violates Article 14, and that transgenders are extremely vulnerable to harassment, vio
lence and sexual assault in public spaces, at home and in jail, also by the police. If we
[94]

are to read this with their finding that 377 is used to harass and physically abuse
transgender persons, we can clearly make the link that 377 fails the test of equality
under the Constitution.
Reforms needed to improve situation

Legal Measures

I.

Every person must have the right to decide their gender expression and identity, including
transsexuals, transgenders, transvestites, and hijras. They should also have the right to freely
express their gender identity. This includes the demand for hijras to be considered female as
well as a third sex.

II. There should be a special legal protection against this form of discrimination inflicted by both
state and civil society which is very akin to the offence of practicing untouchability.

SC
OR
E

III. The Immoral Trafficking Prevention Act, 1956, as has been pointed out earlier, is used less
for preventing trafficking than for intimidating those who are the most vulnerable i.e., the
individual sex worker as opposed to brothel keepers or pimps. This law needs to be reformed
with a clear understanding of how the state is to deal with those engaged in sex work.
IV. Civil rights under law such as the right to get a passport, ration card, make a will, inherit
property and adopt children must be available to all regardless of change in gender / sex
identities.

Police Reforms

I.

The police administration should appoint a standing committee comprising Station House
Officers and human rights and social activists to promptly investigate reports of gross abuses
by the police against kothis and hijras in public areas and police stations, and the guilty
policeman be immediately punished.

GS

II. The police administration should adopt transparency in their dealings with hijras and kothis;
make available all information relating to procedures and penalties used in detaining kothis
and hijras in public places.
III. Protection and safety should be ensured for hijras and kothis to prevent rape in police
custody and in jail. Hijras should not be sent into male cells with other men in order to
prevent harassment, abuse, and rape.
IV. The police at all levels should undergo sensitization workshops by human rights groups/
queer groups in order to break down their social prejudices and to train them to accord hijras
and kothis the same courteous and humane treatment as they should towards the general
public.

Other Measures

I.

A comprehensive sexeducation program should be included as part of the school curricula

that alters the heterosexist bias in education and provides judgementfree information and
fosters a liberal outlook with regard to matters of sexuality, including orientation, identity
and behavior of all sexualities. Vocational training centers should be established for giving
the transgender new occupational opportunities.

II. The Press Council of India and other watchdog institutions of various popular media (includ
ing film, video and TV) should issue guidelines to ensure sensitive and respectful treatment
of these issues.

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