Summary Should UGC be Scraped?

AreportofthecommitteesetupbytheHRDMinistryafterNDAgovernmentcametopowerhasrecommendedthe
scrappingoftheUniversityGrantsCommission.Thecommitteeheaded,ironically,bytheformerUGCChairmanHari
Gautamhasconcludedthatthecommissionhasfailedtofulfillitsmandateandanyattempttoreshapeorrestructureit
willbefutile.TheUGCwasformedthroughanActofParliamentin1956anditsmandateistoprovidefundsto
universitiesapartfrommaintainingstandardsininstitutionsofhighereducation.44centraluniversities,326state
universities,130deemeduniversitiesand205privateuniversitiescomeundertheUGC.Now,thecommitteehas
suggestedthescrappingoftheUGCandhasaskedtosetupanewNationalHigherEducationAuthorityinitsplace.

Alongwithitsrecommendations,thecommitteehasalsopresentedadraftbillforsettingupoftheauthority,noting
thatthepresentbodyhasnotonlyfailedtofulfillitsmandatebutalsohasnotbeenabletodealwithemerging
diversecomplexities.Themandategiventothecommitteewastoanalyze,reviewandrecommendtotheministry,
thearchitecturerequired.Thecommitteehassuggestedthatcategorizationofuniversitiesshouldbereplacedwith
anefficientmodel,anationalresearchaptitudetestforadmissiontoPhDandasingletenureofVCs,besides
scrappingacriteriathatrequires10yearsasprofessortobeeligibleforVC.

TheCommitteesaysthatUGChasdeviatedfromitscoregoalofbeingawatchdogforensuringexcellencein
education.IthasalsoaccusedUGCofindulginginfavoritism.Thepanelhasraisedquestionsaboutselection
criterionforUGCmemberssayingthatattimesevenbusinessmenhavemadethecut.Ithaspointedoutdifferent
lacunaeinactivityoftheUGCchairman.IthasmentionedworkingstructureofUGCasextremelyadhocwhere
thereisnocoordinationbetweendifferentwingswhichleadstowastageofmanandmoneypower.

Fewmonthsago,thegovernmenthadstruckdownabillthatwaspreparedbytheUPAgovernmenttosetupa
NationalCommissionforHigherEducationandResearch(NCHER)asanoverarchingbody.Thecabinethadin
SeptemberlastyeardecidedtowithdrawtheNCHERbillthatenvisagedtheproposedbodyasasuperregulator.
TheNewgovernmentarguedthattheparliamentarystandingcommitteeonHRDhadnotsupportedthebill.The
HousepanelhadsaidtheproposedNCHERmightnotbeabletoframeacomprehensivepolicyfortheentire
country.ItsuggestedthattheexistingregulatorybodiesliketheUGCandtheAllIndiaCouncilforTechnical
Education(AICTE)bestrengthenedinstead.

Someexpertssaythatscrappingisnotasolution.Instead,theinstitutionshouldbestrengthenedandmadetowork
properly.Meanwhile,thegovernmenthassaidthatithasnoplanstoscrapUGCandtherecommendationsareyetto
beunderstoodandanalyzedbeforeanydecisionistakeninthematter.TheUGChasbeencreatedbyanActofthe
Parliamentandcannotbeunilaterallyscrapped.

Prevention of Corruption Act: Should it be amended?

Summary:
Theprovisionsofthepreventionofthecorruptionacthavealwaysinvitedalotofdebateamongpeoplein
governmentandofficials.Theunionfinanceministerhasrevivedthedebateagainbystatingthatthereisaneedto
reviewandamendtheact.Hesaysthattheprovisionofsection13oftheacthasbeendeterrentforeffective
functioningofgovernmentfunctionariesandofficials.Incidentally,theformerPrimeMinisterandCoalsecretary
arefacingcharges.Meanwhilemanyotherofficialsacrossthecountryhavebeenfacingchargesunderthisclause.

TheLawCommissionhasalreadymadesomeproposalstothePreventionoftheCorruptionAct.Thegovernment
hassaidthatsomeoftheprovisionsintheActwerenotinconformitywiththechangedenvironmentandwere
apparentlyhavinganadverseimpactevenondisinvestmentanddefenseproductionandprocurement,areashighon
thegovernmentspolicyagenda.Section13ofthePreventionofCorruptionActdefineswhatconstitutescriminal
misconductbyapublicservantandspecifiespenalprovisions,whichincludesjailuptosevenyears,againstsuch
persons.

Manypublicservantshavesaidtherewasrealfearofgettingentangledincriminalcaseseveniftheiractionwasin
publicinterest.Theconstitutionalityofsection13isalreadyunderchallengeintheSupremeCourt.Incidentally,the
previousUPAgovernmenthaddecidedtorevokethisclausefromtheActafteritwashighlightedthatfearofpenal
actionforbonafideactionswaspreventingbureaucratsfromtakingevenroutinedecisions.However,manyexperts
havealsobeenopposingthismove.Theysaythatgovernmentofficialswillactlawfullyonlyifsuchactsarein
place.
TheBigPictureSignalsfromEconomicSurvey
Summary:
EconomySurveyhasprojectedthatIndiashouldhave25%ofthemanufacturingshareintheGDPby2022.This
meansabout11%annualgrowth.Toachievethistargetenergizationofassembliesisnecessary.Assemblies
contributenearly40%ofthemanufacturing,40%ofexportsand50%ofthetotalemployment.Hence,SMEis
certainlythegrowthengine.TheSurveysaysthatthecountrysoveralltradeperformancesignalsanopportunetime
forremovalofrestrictionsongold.Domesticinvestmentshavetobeencouraged.

TheEconomicSurveyprojectsanoptimisticvisionofIndiasfuture.Itpredictedthatgrossdomesticproduct
(GDP),asmeasuredusingtherecentlyrevisedestimates,wouldgrowataratebetween8.1and8.5%inthenext
financialyear.ItalsosaysthatahistoricmomentofopportunityhadbeencreatedthatcouldpropelIndiaontoa
doubledigit(growthrate)trajectoryintheyearsfollowing201516.Indiawas,itclaimed,onthecuspofahigh
growthpath.

TheSurveyestimatedincrementalGDPgrowthfor201516over201415as0.6to1.1%points.Theincreasewas
basedonfourfactors.First,whattheSurveydescribedasreformsconductedbythenewgovernmentthese
includesuchitemsasdieselpricederegulation,highercapsforforeigndirectinvestmentindefenceandthecoal

ordinancewouldboostgrowth.Second,itwasexpectedlowerfuelpriceswoulddecreasecostsintheeconomy
andmoderateinflation.Third,thehopedformonetaryeasingwouldstimulateinvestmentandencouragehousehold
spendingininterestsensitivesectorslikeconsumerdurables.Finally,themonsoonisprojectedtobebetterthan
lastyears.

Onsubsidycontrol,whileacceptingthatdirectbenefitstransfers(DBT)werealaudablegoalofpolicy,theSurvey
pleadeddevelopingthestatecapacitytoimplementDBTwilltaketime.Otherwaystoplugsubsidyleakages,such
astheRs10,000crorefromkerosene,neededtobeimplementedfirst.Onemajorreformsuggestedwasthecreation
ofasinglemarketforagriculturalgoods,overrulingindividualstatesagriculturalproducemarketingActs.

However,theactualreformagendatheSurveylaidouterreddistinctlyonthesideofcaution,ratherthanbeingthe
revolutionaryprogrammewidelyexpectedtodrivegrowth.TheSurveystatedbaldlythatbigbangreformswould
nothappen.Instead,itpredictedapersistent,encompassing,andcreativeincrementalism.Overall,theSurveyhas
laidoutacoherent,ifnotablyrestrained,policyagendawhichdifferedinsignificantwaysfromtheonecurrently
beingimplemented.

TheBigPictureBlackMoneyBill:Willitbeeffective?
Summary:
Thedebateregardingblackmoneystashedabroadandbringingitbackhasbeenragingforquitesometimenow.
Thepresentgovernment,whichhadpromisedtogetblackmoneyback,hasbeentakingsomepromisingsteps.
Recently,theunioncabinetclearedabill,whichseekstoimposeharshpenaltiesalongrigorousimprisonmentfor
thosefoundwithblackmoney.

Oneoftheprovisionsinthebillseekstohaveakindofamnestyscheme.Therearepresently6amnestyschemesin
India.ThegovernmentofIndiahadgivenanundertakingintheSupremeCourtthattherewillnotbeanysuch
schemesfurther.Thereisallegationthatsuchamnestyschemeshelpblackmoneyholdersconverttheirmoneyinto
white.Suchschemessupportoffendersandhonesttaxpayersarealsolikelytobecomedishonest.

Sincetherearearound90taxhavens,itbecomesdifficulttocalculatetheexactamountofblackmoneystashed
awayabroad.Onlyfewhundrednamesofblackmoneyholdershavebeendisclosedtilltoday.Thenewbillalso
aimsatcurbingfurthergenerationofblackmoney.Expertsalsopointoutthatthegenerationofblackmoneystarts

withthedemandforit.Thebiggestdemandcreatorsforblackmoneyarepoliticalpartiesforelectionexpenditure
alongwithsomeothersectors.Eveninformalsectorsgenerateblackmoney.

Someexpertsevensaythatproperimplementationoftheexistinglawswouldsolvemuchoftheproblem.Thereis
aneedtodevelopdedicatedcourtsystem,whichcanpunishintheshortestpossibletime.Thereisaneedforstrong
politicalwilltoproperlyimplementtheexistinglaws.ItisalsotruethattaxratesinIndiaarehigh.Andthis
increasesthetendencytoevadethetaxes.Henceproperlawstoreducetaxevasionsarealsorequired.

TheBigPictureBudget2015:ImplicationsforSocialSector
Summary:
ThereisageneralfeelingthatundertheBudgettheallocationsmadetothesocialsectorcomingundervarious
ministrieshavebeeninadequateandevenmuchlessthantheallocationsmadelastyear.Thecentrehashowever
defendeditsmovebysayingthathigherdevolutionoftaxrevenuestothestatesassuggestedbythe14thfinance
commissionwouldfillthegap.But,thecriticssaythatevensuchhigherdevolutionwouldnotsolvetheproblem.
Statesspend95%oftheircollectionsonsalariesandotherexpenditures.Thenetadditionalresourcestransferredto
theStates,includingStatesshareoftaxesandduties,nonPlangrantsandloans,CentralassistancetoStateplans,
assistanceforCentralandCentrallysponsoredschemes,isonlyRs.64,000crorein201516.

Itisalsotruethat95%ofthebudgetcomeswithaPresetbecauseofthecommitmentslikesalaries,defence
expenditure,interestrepaymentsetc.Hence,unlessadirectionalchangeismade,thecentreisleftoutwithvery
littleresources.Thepresentgovernmenthadsomeadvantagescreatedbecauseoffallinthepricesofcrudeoil.To
someextentthegovernmenthasresistedthetemptationonbeingPopulist.SomeinitiativeslikeMUDRAbankare
widelywelcomed.

TheBudgetisstrongonthesocialsectorsideasitmovesfromJanDhantoJanSurakshaandafunctionalsocial
securitysystemforallIndians.Thereisa22%reductioninallocationforSarvaShikshaAbhiyan(SSA)overlast
year.Thetrendoflowerallocationisinlinewiththenearuniversalenrolmentachievedatprimarylevel.However,
theincreasedfocusonenhancingqualityofeducationtoaddressthepoorlearninglevelsofstudentsisnotevident
fromtheallocations.

Thereisa22%reductioninallocationforSarvaShikshaAbhiyan(SSA)overlastyear.Thetrendoflower
allocationisinlinewiththenearuniversalenrollmentachievedatprimarylevel.However,theincreasedfocuson
enhancingqualityofeducationtoaddressthepoorlearninglevelsofstudentsisnotevidentfromtheallocations.
EventheHealthsectorhasnotreceivedmuchattention.

TheBigPictureNetNeutrality:Intricaciesandimplications
Summary:
Howweaccessinternetandvariousapplicationsinthefutureisnowunderquestion.Thedebateragingacrossthe
countrynowandbeingwatchedacrosstheworldkeenlyisontheissueofNetNeutrality.TheTelecomRegulatory
AuthorityofIndiahasinthemeanwhilecomeoutwithaconsultationpaperontheregulatoryframeworkonwhatis
knownasOverTheTop(OTT)services.Evenasthispaperisbeingscrutinizedmanyquestionsraisedinitare
beinglookedinto.ThedebatehasbecomefuriousaftersometelecomcompanieslikeAirtelandReliance,and
websiteslikeGoogleandFacebookaresaidtobealreadyviolatingtheideaofnetneutrality.

NetneutralityistheprinciplethatInternetserviceprovidersandgovernmentsshouldtreatalldataontheInternet
equally,notdiscriminatingorchargingdifferentiallybyuser,content,site,platform,application,typeofattached
equipment,ormodeofcommunication.Neutralityproponentsclaimthattelecomcompaniesseektoimposeatiered
servicemodelinordertocontrolthepipelineandtherebyremovecompetition,createartificialscarcity,andoblige
subscriberstobuytheirotherwiseuncompetitiveservices.Manybelievenetneutralitytobeprimarilyimportantasa
preservationofcurrentfreedoms.

ProponentsoftheprincipleofnetneutralityholdthatalltrafficontheInternetshouldbetreatedequallyorinother
words,serviceproviderssuchasAirtelshouldallowaccesstoallcontentwithoutfavoringanyparticularproductor
website.ThenetneutralitydebatebecomesevenmorerelevantincaseofIndiawherethepenetrationofsmart
phonesisincreasingandeffortsareontobringmorepeopletotheInternet,throughthedigitalIndiacampaign.
Presently,therearenonormsfornetneutralityinIndia.

Whileontheotherhand,thetelecom/InternetServiceProvidersarguethattheyhavemadehugeinvestmentsin
broadbandcapacity,and,therefore,theyshouldbeallowedtochargefortheservices,whichgeneratelotoftraffic.
Preventingtheserviceprovidersfromchargingforoverthetopservices(OTT)serviceswouldmeanthatthey
wouldreducetheirinvestmentsinbuildingnetworks.

Currently,therearenolawsenforcingnetneutralityinIndia.AlthoughTRAIguidelinesfortheUnifiedAccess
Servicelicensepromotenetneutrality,itdoesnotenforceit.TheInformationTechnologyAct2000alsodoesnot
prohibitcompaniesfromthrottlingtheirserviceinaccordancewiththeirbusinessinterests.

Theviolationofnetneutralitywillmeantelecomcompaniescouldnowbeinapositiontoensuresomesitesare
servedfasterthanothers.Itcouldalsomeanitbecomescostliertousecertainapplications.Mostimportantly,it
couldendangertheveryfeatureoftheInternetthathasovertheyearsmadeitpossibleforcountlessstartupsto
dreamandactbig.Sobyrejectingnetneutrality,whichwillenabletelcostoplaythegatekeepertoavaluable
resource,wewillbeshuttingthedoorontheentrepreneurialaspirationsofmillions.Thatsbecausetheonlyway
forthemtocompetewiththebigmoneyedInternetplayerswouldbetomatchtheirspendstomaketheInternet
workforthem.Theabsenceofnetneutralitywilldefinitelybenefitthetelcoswhileatthesametimeharmingthe
marketbyunleashingmonopolistictendencies.