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The bill seeks to bring transparency to the allocation of mining license process by
auctions
The bill contains a new license for prospecting-cum-mining, replacing a two-stage
process
Criticism: such licenses will be useless, because no one would want to spend
before firmly establishing that there are minerals
The licences will have a validity of 50 years, compared to the previous 30 years.
There will be no renewal of licences, only re-auction. However, all mining leases
granted for such minerals before the Ordinance shall be valid for 50 years
This severely dilutes the auction mechanism being trumpeted about
The central government shall prescribe the terms and conditions, and procedure
for auction, including parameters for the selection of bidders. For mining leases,
the central government may reserve particular mines for a specific end use and
allow only eligible end-users to participate in the auction, if found necessary.
While the State Governments will still grant mining lease licenses, and get the
royalty after, the act might be challenged on the ground of being
unconstitutional, because prior SC judgements show that mining is completely
a state subject, whereas here the union government is impinging on their
rights, e.g.:
Change the area of mining, by allowing the Central Government to extend the
area limits of mining, instead of providing multiple mining leases
The bill will make illegal mining, trespassing and violation of norms, cognisable
offences
A new concession instrument called a High Technology Reconnaissance-cum-
Exploration License has been introduced
Key Issues and Analysis:
A huge majority of the mine blocks lie in areas covered under the 5th Schedule;
the Act permits allocation of mineral concession in tribal areas to a non-
tribal. There are two conflicting Supreme Court judgments on the legality of such
a provision
Royalty rates are set to achieve an optimum balance between attracting
investments while maximizing revenues for the state. Mandating additional
payments to the DMF could disturb this balance
The Bill mandates the issue of a non-transferable share to affected persons. The
Companies Act, 1956 does not permit the issuance of non-transferable shares
Any gap in the minimum compensation to be paid to affected families by the
DMF is to be covered by the state government. This could put pressure on state
government finances
The Bill does not clearly define some terms, such as High Technology
Reconnaissance-cum-Exploration License
The 2015 Bill neither mentions tribal cooperatives nor contains provisions for
consent, consultation or clearances, which might violate provision of the PESA
act of 1996
UPDATE (June 2015): The central government has now said that the state
governments can change the eligibility criteria for the mining lease auction,
keeping in mind Article 244 and Schedules 5 and 6 of the constitution. This is to
ensure that concerns of tribal areas are taken into account. PESA Act, Scheduled
Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights Act),
2006, should also not be violated
The new act seeks to enable private companies to mine coal for sale in the open
market, thereby ending the exclusive control of government over coal extraction,
and hopefully leading to increased supply of coal
Open up the way for FDI in coal extraction (but need to develop infrastructure)
In response, when the ordinance was first introduced, Coal India workers went on a
strike in February:
This was because Coal India is the monopoly supplier; it caters to over 80% of the
domestic coal production, and has a workforce of 3 lakh people
However, Coal India has not been able to keep up production as per rising
demand for the fuel
Then the NDA introduced an ordinance that allowed for commercial mining for
sale of coal in the open market, not limited to end-use
Workers were worried that the entity will be nationalized, and merchant mines
would not pay minimum wages or ensure workers social welfare, and hence will
be able to sell coal cheaper and make Coal Indias output expensive in
comparison; this would lead to effective de-nationalization of Coal India; thus,
they called for the biggest industrial strike since 1970s
It halted 1.5 million tonnes of coal production per day for its two-day duration,
causing an estimated total loss of about Rs.400 crore
The coal act opens up the sector for commercial mining and aims to facilitate the
auction of over 200 coal blocks cancelled by the SC during UPAs tenure
The Act also removes the restrictions of end use from the eligibility to undertake
coal mining, except for a few specified blocks (Schedule II and III blocks), this paves
the way for commercial mining of coal
The bill has provisions for allocation of coalmines through a transparent bidding
process (e-auction)
The e-auction of coal blocks will ensure the continuity in coal mining operations
and promoting optimum utilization of coal resources
The bill also facilitate e-auction of coal blocks for private companies for captive
use and allot mines directly to state and central Public Sector Undertakings
(PSUs)
Compensation only for land and immovable mining infrastructure shall be paid to
the prior allottees after paying secured creditors
It has provisions that propose strong measures for rehabilitation and
compensation for displaced persons.
The bill also provides for vesting of the right, title and interest over the land and
mine infrastructure together with mining leases to successful bidders
8. PESA Act
Enacted to cover the scheduled areas which are not covered under the 73rd
amendment
Enables Gram Sabhas to self-govern their natural resources
The Gram Sabhas have roles and responsibilities in approving all development
works in the village, identify beneficiaries, issue certificates of utilization of funds;
powers to control institutions and functionaries in all social sectors and local
plans
Gram Sabhas or Panchayats at appropriate level shall also have powers to
manage minor water bodies; power of mandatory consultation in matters of land
acquisition; resettlement and rehabilitation and prospecting licenses/mining
leases for minor minerals; power to prevent alienation of land and restore
alienated land; regulate and restrict sale/consumption of liquor; manage village
markets, control money lending to STs; and ownership of minor forest produce
9. George Baker and Richard Hay have been nominated as Anglo members to the Lok
Sabha. Maximum strength of Lok Sabha is 552 members (530 from states, 20 from
UTs, 2 nominated)
10. RTE:
Which constitutional amendment introduced the Right to Education? Which
article in the constitution does this refer to?
The RTE provides for prohibition of deployment of teachers for non-educational
work, other than decennial census, elections to local authority, state legislatures
and parliament, and disaster relief
Sarva Shiksha Abhiyan
Benefits:
Reduction in the number of taxes at the Central and state levels
Cut in effective tax rate for many goods by removal of the current cascading effect
of taxes
Reduction of transaction costs for taxpayers through simplified tax compliance
Increased tax collections due to wider tax base and better compliance
Unification of India into a single market, eliminating the need for border check
posts to collect taxes on goods produced in one jurisdiction but sold in another
Good for consumer states
Controversies:
Both center and the states want certain high tax-revenue generating goods (like
petroleum, alcohol etc.) removed from the ambit of GST => reduces tax base
Some calculations of the revenue-neutral tax rate (post removal of certain goods)
are as high as 27% => incentive for evasion => little improvement in compliance
In the currently proposed dual structure, the tax might just be reduced to a
renaming of the existing Central Excise Tax and States VAT/ sales tax
Transaction costs: government will need to make e-infrastructure (GST Network)
Attention-diversion cost: other reforms sidelined
Compromises Indias federal structure by not allowing states to set their own rates
=> restricts the ability of states to determine the level of spending on public goods
and services locally
Bad for states that produce a lot but dont consume much
Given that this is a Constitutional Amendment Bill, this cannot be passed via a
Joint Sitting
Read Pangarias article
In view of the impending changes with the introduction of GST, adequate
compensation to ULGs for their loss of income will need to be ensured. The past
experience has not been very good in this regard. Many state governments, on
abolition of octroi (a tax on entry of goods within the city limits) and in some cases
even property tax, had promised compensatory grants to ULGs with an annual
increase to maintain the buoyancy. However, compensation to local bodies has
remained static and is often not released in time
GST Council: This will be the decision making body that will bring any changes
required to the GST Act. It will be composed of the Center and all the states, with
the center holding 33% of the voting rights, and the states, 67%. To get any
changes approved in the operation of GST, 75% or more votes will need to affirm
it. That is, the center has a de-facto veto, whereas a minimum of 12 states will
need to come together to block any changes that they dont agree with
GST Council composition: The Council will consist of the Union Finance Minister
(as Chairman), the Union Minister of State in charge of Revenue or Finance, and
the Minister in charge of Finance or Taxation or any other, nominated by each
State government. The GST Council will be the body that decides which taxes
levied by the Centre, States and local bodies will go into the GST; which goods
and services will be subjected to GST; and the basis and the rates at which GST will
be applied
18. Under AFSPA, who can declare an area as disturbed? State or Centre? Can this
classification be challenged in a court of law? How many people can assemble
peacefully before AFSPA can be invoked?
Check: Either the states or the central government can declare an area disturbed; this
cannot be challenged in a court of law. 5 people only
In 2005, the Jeevan Reddy Committee recommended that AFSPA should be done
away with, and relevant provisions should be subsumed within the Unlawful Activities
(Prevention) Act.
19. Insurance Laws (Amendment) Act (Passed in both houses):
Increased FDI limit, strengthening of IRDA, consumer protection
Provides for enhancement of foreign investment cap in an Indian Insurance
Company from 26% to an explicitly composite limit of 49% with the safeguard of
Indian ownership and control
Expected to lead to increase in distribution and reach of insurance products
(currently, only 17% of the entire population has any form of health insurance,
and health spending is one of the most widespread causes of poverty in India)
Will enable capital raising through new and innovative instruments under the
regulatory supervision of IRDAI
Will enable the interests of consumers to be better served through provisions like
those enabling penalties on intermediaries / insurance companies for misconduct
and disallowing multilevel marketing of insurance products in order to curtail the
practice of mis-selling; the time limit in which a consumer can repudiate a policy
will be increased
The appellate procedure will be made more robust
20. Attorney Generals office is covered under the RTI act
21. What is the function of a party whip? Different types?
22. Procedure for setting up of State Legislative Councils- Legislative Councils can only be
set up if first the state assembly passes a resolution with a special majority, and then
the Parliament passes a resolution (simple majority)
23. Undisclosed Foreign Income and Assets (Imposition of Tax) Bill, 2015
Also known as black money bill
Provides for separate taxation of any undisclosed foreign income and assets; such
income will now not be taxed under the Income Tax Act
It will apply to all residents of India
Tax rate will be a flat 30%
Proposes very stringent punishments; to the tune of 90% of the value of
undisclosed assets/ income, to three years of rigorous imprisonment
FCRA has been in the news because of the recent controversy surrounding foreign-
funded NGOs- an IB report in 2014 states that several foreign-funded
environmental NGOs, such as Avaaz, Bank Information Centre (BIC), Sierra Club
etc. are targeting development projects across the country, leading to a loss of 3-
4% of the GDP annually
The government directed the RBI to stop all foreign funding into the accounts of
NGOs that do not comply with the FCRA
38. In general, a recent report showed that there are about 20 lakh NGOs registered in
the country (including non foreign-funded ones). Of these, only about 10% file their
annual income and expenditure statements with the authorities that they are
registered with
62. Medical Termination of Pregnancy (MTP) Amendment Bill: India has an embarrassing
maternal mortality record. Every two hours a woman dies in an abortion performed
unsafely or unscientifically. Medical infrastructure and sanitization of operation rooms
is also poor
Recent amendments:
The Indian Medical Association and the Union Health and Family Welfare Ministry
are headed for a face off over the governments proposal to allow AYUSH
practitioners and paramedical staff to perform abortions on pregnant women
under the Medical Termination of Pregnancy (MTP) Amendment Bill. The IMA has
already expressed reservations about the proposal
The government is of the view that expanding the provider base with strict
conditionalities would enhance access and availability of safe abortion services
without compromising on quality of service
The government has planned to provide requisite training and certification,
which would be specified in the rules, to the AYUSH practitioners for allowing them
to perform the procedure
63. When does the Model Code of Conduct come into force?
The Model Code of Conduct comes into force the moment an election is
announced and remains in force till the results are declared
Ministers, including Prime Minister, cannot combine their official visits with
electioneering work. They also cannot use official/government machinery or
personnel for electioneering work. Public places for holding election rallies and
helipads for flights in connection with elections are to be made available to all
parties on the same terms and conditions on which they are used by the party in
power
69. Qualifications for Attorney General: Attorney General must be qualified to be a judge
of the Supreme Court
70. Private Members Bills
Every member of Parliament, who is not a Minister, is called a Private Member
(doesnt matter if you belong to the ruling party!)
A member who wants to introduce a Bill has to give prior notice thereof. The
period of notice for introduction of a Bill is one month unless the Speaker allows
introduction at a shorter notice
Constitutional Amendment Bills can be proposed: Bills seeking to amend the
Constitution, apart from being subject to the normal rules applicable to Private
Members Bills, have also to be examined by the Committee on Private Members
Bills and Resolutions
87. NRIs voting from abroad (proposed amendment of Representation of People Act):
The government has informed the Supreme Court of its decision to accept the
Election Commissions recommendation to allow Non-Resident Indians to vote
from overseas through e-postal ballots or proxy voting
Impact:
The governments decision to allow NRIs to vote could set the stage for
expatriates to emerge as a decisive force in the countrys electoral politics
This decision also, historically, removes an unreasonable restriction posed by
Section 20(A) of the Representation of the People (Amendment) Act of 2010,
requiring overseas electors to be physically present in their constituencies to cast
their votes
There are 10 million Indian citizens staying abroad, and with 543 Lok Sabha
constituencies, this means an astonishing average of 18,000 votes per
constituency may get polled from abroad. These additional votes, if polled, will
obviously play a crucial role in state and general elections
Current situation:
According to the provisions of the Representation of People Act, a person who is
a citizen of India and who has not acquired the citizenship of any other country
and is otherwise eligible to be registered as a voter and who is absent from his
place of ordinary residence in India owing to employment, education or
otherwise, is eligible to be registered as a voter in the constituency in which his
place of residence in India, as mentioned in his passport, is located
However the person will be able to exercise the franchise only if he or she is
physically present in their constituency on the polling day at the polling station
along with the original passport. This had created a problem
However, Section 20(8) (d) of the Representation of the People Act 1950 read
with Section 60(b) of the Representation of the People Act 1951 allows
government servants and certain other class of persons to vote via postal ballot
following the Election Commissions consent
88. Under Article 72 of the Constitution, the President can grant pardon, and suspend,
remit or commute a sentence of death. However, the President does not exercise
this power on this own he has to act on the advice of the Council of Ministers.
This too has been made clear by the Constitution.Under the existing rules of
procedure governing mercy petitions, the view of the Union Ministry of Home
Affairs (MHA), conveyed to the President in writing, is taken as the view of the
Cabinet, and the President decides a mercy petition accordingly
91. The Homeland Security Presidential Directive (HSPD -6) is a model text agreement
proposed by the U.S. for exchange of terrorist screening information between the
Terrorist Screening Centre (TSC) of the U.S. and an Indian agency.As part of the
agreement, India could share details on red corner notices as well as details on
criminals or terrorists wanted across the country with the US
92. The Tribes Advisory Councils have been constituted in the Scheduled Areas States
i.e. Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Himachal Pradesh, Madhya
Pradesh, Maharashtra, Odisha and Rajasthan and non Scheduled Areas States of
Tamil Nadu and West Bengal.
TACs are mandated as per the Fifth schedule of the constitution, to advice on
matters pertaining to the welfare and advancement of the STs in respective States
as may be referred to them by the Governor
The decisions taken in the TACs do not need Cabinets approval and the council
enjoys a say in crucial matter related to tribal issues
The government has to nominate tribal MLAs and MPs for the TAC of which the
Chief Minister is the chairperson
98. The Juvenile Justice (Care and Protection of Children) Act, 2000, lays down that
even if a child under the age of 18 is found guilty under the Act, it does not render
the youngster ineligible for education
99. Land Pooling v/s Land Acquisition: Under land pooling systems, landowners
voluntarily sign ownership rights over to a single agency or government body. This
agency develops the land by building roads and laying sewage lines and electricity
connections. Once this is done, it returns a smaller portion of the land to the original
owners. But since the plot now has more amenities, its price has probably risen to
match the market value of the owners original landholding
In pooling, land, not money, is the primary medium of exchange. When acquiring
land, the authorities sometimes have to compensate owners with up to four times
the value of their plots. But instead of paying four times the market rate of their
land, authorities often pay them four times the registered value. This amount is
usually significantly lower and does not factor in inflation over the years. This makes
it difficult to obtain the consent of the majority of plot owners. As a result, land is
often acquired by force
1. The government has decided to amend the Income Tax Act with retrospective effect
to exempt from minimum alternate tax (MAT) the overseas companies that are
covered under double taxation avoidance agreements (DTAAs). DTAA provides that
business profits will be taxable in the source country if the activities of an enterprise
constitute a permanent establishment (PE)
2. Gujarat Control of Terrorism and Organised Crime (GCTOC) Bill, 2015:
The anti-terror Bill, passed by the Gujarat Assembly and twice rejected by the
previous UPA government, has been cleared by the union government and sent
to the President for his assent
Citing past terror attacks in Gujarat, the state government had raised concerns
over Pakistans attempts at cross-border terrorism, Gujarats vulnerable coastline
and the proliferation of criminal gangs, while underscoring the need for a strong
law
The Bill provides for admissibility of evidence collected through interception of
mobile calls of an accused
Makes confessions before police officers admissible in court
Non-bailable convictions
Immunity to the State government from legal action
3. Anti-defacement Bills: Several states in India, like Haryana and West Bengal, have
such bills to check defacement by indiscreetly putting up posters, bills and painting
graffiti in government buildings, heritage structures and other public places during
campaigning and also for commercial purposes
4. Lok Adalats are in vogue to ensure speedy resolution of civil cases, and reduce
pendency in courts.These are a non-adversarial system, whereby mock courts are
held by the State Authority, District Authority, Supreme Court Legal Services
Committee, High Court Legal Services Committee, or Taluk Legal Services
Committee.These are usually presided over by retired judges, social activists, or
other members of the legal profession.
The focus in Lok Adalats is on compromise. When no compromise is reached, the
matter goes back to the court. However, if a compromise is reached, an award is
made and is binding on the parties.The disputing parties plead their case themselves
in Lok Adalats. No advocate or pleader is allowed, even witnesses are not examined.
These adalats have statutory recognition
5. Human DNA Profiling Bill is ready for introduction in the next session of
Parliament.The bill proposes to allow collection of samples from private parts of
human body for DNA profiling and data preservation with the approval of a
regulatory body. The bill mandates that the DNA profiles or samples be kept
confidential, and they should be used only for establishing identity of a person and
nothing else
6. Article 44 of the Constitution says that there should be a Uniform Civil Code (just as
DPSP). Uniform civil Code is a proposal to have a generic set of governing laws for
every citizen without taking into consideration the religion.Currently, there are
personal laws based on the scriptures and customs of each major religious
community. They are separate from the public law and are applied on issues like
marriage, divorce, inheritance, adoption, and maintenance