ok Sabha TV Insights: Syrian Crisis

BY INSIGHTS SEPTEMBER 28, 2015

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Lok Sabha TV Insights: Syrian Crisis

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Russias Military Involvement

According to Putin he will go to any extent to safeguard Russian
interest. Russia wants to check ISIS development and is increasing
its military presence in the region. According to Russia, ISIS is more
dangerous than President Assad and can be monster as they are
planning for Islamic Caliphate.
Bashar al Assad has asked help from Russia and this is first major
military operation outside its neighborhood since soviet troops
withdrew from Afghanistan in 1989.
Reactions
West is not happy and they are seeing it as Russias unnecessary
intervention. And with respect to refugee crisis no consensus has
been met by Europe or NATO
What should be done?
Pragmatic and realistic approach should be taken by US and Europe
and they should accept Russias role. In fact their support system
should focus should be on ISIS so that no vacuum is created.
International coordination is required to handle ISIS and its offshoots
in the region
Political strengthening is also required in the regions like Iraqi
government, between Syria vs. Kurdish element, etc.

It should be treated as global problem and UN should involve

immediately and aggressively to solve the crisis with help of
member states.
Recent developments which can play role
Now Iran is major player in the region after the nuclear agreement
and has backed the removal of ISIS for regional security and
stability.
Europe is no more insulated to the problems and is alert due to
Refugee crisis and now accepting the refugees.
Humanitarian crisis and growth of ISIS is making world power
restless.
Why the Muslims of west and other countries are joining
ISIS?
Dozens of people are going to join ISIS. They feel that Western
nations has not treated them properly and in reaction to it various
terrorist outfits are coming out
Domestic developments of the countries are also responsible for
increasing fundamentalism.
Has UN failed in solving the crisis of middle east?
Though in the past Ban Ki-moon, the secretary general of the United
Nations, has said that the organization was responsible for a
collective failure to halt more than two years of atrocious violence
in Syria. But, UNs relevance is not in question but its effectiveness
is for sure in crisis. Present UN text based negotiations shows
relevance of UN
Presidency of UN is rotational so countries are playing in-depth role
in UN functioning. We need to understand Why UN has not been
able to perform

What India should do?

India hosts more than two lakh refugees and is at the center of
refugee movements in South Asia. Despite this, India is not a
signatory to the 1951 UN Refugee convention, nor does it have a
domestic asylum framework as it fears that this would encourage
more refugee inflow.
Indias refugee protection framework is based on a combination of
executive policies and judicial pronouncements.
In the past India has been a generous host to several persecuted
communities and does more than many signatory countries. But,
now India needs to devise legal framework at both domestic and
regional levels. As the only stable democracy in South Asia an
demerging power with aspirations to permanent membership of
UNSC, it is incumbent on government to lead by examples and
reinforce our historic commitment to refugee protection.
India with its human resources and skills could offer to help out
European Nations.
India is 2nd most populous Islamic nation after Indonesia. And it is
also struggling with the terrorist activities. India should be
concerned about the increasing writ of jihadist group ISIS. Here India
with its intellectual depth in Islamic matters can provide the
necessary strategic flexibility.

The Big Picture RTI: Should Political

parties be in its ambit?
BY INSIGHTS SEPTEMBER 26, 2015

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The Big Picture RTI: Should Political parties be in its ambit?

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Summary:
The battle for political parties to be included in the ambit of RTI has
got little tougher. The central government has filed an affidavit
before the Supreme Court that political parties need not be brought
under the ambit of RTI act. The government has said that bringing
parties in the ambit would lead to hampering of smooth functioning
of the political parties. It also has submitted that order of the central
information commission in 2013 declaring political parties as public
authorities under the RTI act was erroneous. All major political
parties, except AAP, have also expressed similar views. The case is
before the Supreme Court.
What the government says?

When the RTI Act was enacted, it was never visualized that
political parties would be brought within the ambit of the
transparency law.
Political parties were not established by the constitution or an
act of parliament and therefore should not be under the RTI.
Political parties are not public authorities as they are not set up
under the Constitution or any law enacted by Parliament they
cant be treated as an institution or establishment.
If political parties come under the RTI it will affect their smooth
internal functioning.
Political rivals will start using RTI tool with malicious intent.
There are already provisions in the Income Tax Act, 1961, and
Representation of the People Act, 1951, which demand necessary
transparency regarding financial aspects of political parties.
These mechanisms ensure transparency in financial dealings of
parties.
Information about a political body is already in the public
domain on the website of the Election Commission.

Political parties should be brought under the ambit of RTI:

Arguments In favour:
If political parties are kept out, it sets a precedent whereby
other institutions can argue that they too be kept out of its
purview because there are too many frivolous claims, too much
paperwork, too many NGOs with suspect motivations and so on
and so forth.

Political parties in our country occupy a very central space in

democracy. People dont vote so much for individuals as they do
for parties.

Parties come out with great statements before elections.

People vote on the basis of which party says what. Parties finally
form the government. And the governments policies are decided
based on the ideologies of the political parties.

In India, it is widely accepted notion that fountain head of the

corruption is political funding.
Almost all political parties have got very valuable plots allotted
by the Government at prime places in New Delhi and in their
respective capital cities.
It is therefore, necessary to introduce internal democracy,
financial transparency and accountability in the working of the
political parties.
to ensure less influence of industrial houses on policy making:
Most of the parties have almost 75% of their income from
unknown sources. Generally corporate and industrial houses give
them funds to change policies, give illegal clearance and to
hamper their competitors interest. It may also hamper people
and national interest.
Political parties enjoy a stronghold over their elected MPs
and MLAs under Schedule 10 of the Constitution. The Schedule
makes it compulsory for MPs and MLAs to abide by the directions
of their parent parties.
It would be within the average voters fundamental right to
information to know the financial details of political parties.
Under Section 29A of the Representation of the People Act,
1951 all political parties must affirm their allegiance to the
Constitution of India and such allegiance is made compulsory for
the purpose of registration under sub-section (7) of Section 29A.
Therefore, political parties so registered must furnish information
to the public under the right of information under Article 19(1)
(a) of the Constitution of India, since right of information has
been held to be a part of freedom of speech and expression
under Article 19(1)(a).
The Law Commission of India in its 170th Report on Reform of
the Electoral Laws in May 1999 had recommended transparency
in the functioning of political parties.

Arguments showing the public character of political bodies:

The criticality of the role being played by these political parties

in our democratic set up and the nature of duties performed by
them point towards their public character.
Indirect substantial financing by the central government,
performance of public duty and Constitutional and legal
provisions vesting them with rights and liabilities.
National parties are virtually funded by the state as they are
exempted from filing income tax returns. The RTI Act says any
non-governmental organisation substantially funded by
government will be a public authority.
As per Section 29C of the Representation of People Act, 1951,
all donations of and above Rs. 20,000/- made to political parties
are required to be reported to the income tax department. This
obligation cast on the political parties points towards their public
character.
Section 80 GGB of the income tax Act provides that
contribution made by an individual or company to a political
party is deductible from the total income of the assesse. This
provision is exclusively applicable to the political parties and is
suggestive of indirect financing of the political parties by the
State.

Indias World: UN report on Sri Lanka

War Crimes
BY INSIGHTS SEPTEMBER 29, 2015

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Indias World: UN report on Sri Lanka War Crimes

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Summary:
The report of UN Human Rights Council on war crimes in Sri Lanka is
finally out. It has recommended the setting up of special hybrid
court with international judges to try the crimes committed by both
the Srilankan army and the LTTE in the civil war between 2002 and
2009. This is a major blow to Sri Lankas insistence on holding a
purely domestic probe. A few days before this report was released,
the new government in Sri Lanka had unveiled plans to set up truth
and reconciliation commission to examine war crimes allegations
including those against the army. now, the future of those plans
seems uncertain.
UN human rights commissioner has said that a purely domestic
procedure will have no chance of overcoming widespread and
justifiable suspicion fuelled by decades of violation, malpractice and
broken promises. Rights group claim that the srilankan army killed
40000 civilians in the war. The report notes that Sri Lankas criminal
justice system is not yet ready or equipped to conduct a credible
investigation that would deal with the legacy of anger and
scepticism left by the previous government, as well as the sheer
scale and gravity of the violations.
However, Sri Lankan Prime Minister has rejected a UN
recommendation for international involvement in its investigation
into alleged war crimes. He has said that there is nothing to be
gained by international involvement, rejecting the idea that the
inquiry would be hybrid. Sri Lankan President Maithripala Sirisena
has vowed to bring war criminals to justice, with his government
announcing plans to set up a truth commission, war reparations
office and commission on missing people. Members of the Tamil
minority have expressed distrust in a purely domestic inquiry.

The Office of the United Nations High Commissioner for Human

Rights (OHCHR) has defended the findings of its report. The UN
report has come amid mounting pressure on the Sri Lankan
government from human rights groups and the international
community to investigate and prosecute abuses during the conflict
with the Liberation Tigers of Tamil Eelam (LTTE). The Office of the UN
High Commissioner for Human Rights Investigation on Sri Lanka
(OISL) investigation was initiated after a US-sponsored resolution
was passed in the UN Human Rights Council in March 2014.
The Sri Lankan government refused any international investigations
during the presidency of Mahinda Rajapaksa, who presided over the
militarys push to end the Tamil insurgency in 2009. This led the
United Nations to proceed in March 2014 without Sri Lankas
cooperation. When Mr. Rajapaksa was defeated in January elections,
the council delayed its report to allow the new government of
Maithripala Sirisena to come up with plans for national reconciliation
and to work with international investigators.
The new government has been coming out with new measures,
since its inception. It passed the 19th amendment to the
constitution, which essentially reduces the power of the presidency.
The Tamils received another gesture towards reconciliation, when
the sixth anniversary of the defeat of the Tamil Tigers was marked
as a memorial day, rather than as a day of victory.
The report has also proposed some measures. Proposed measures
include returning private land seized by the army, ending the
harassment of human rights defenders, passing legislation
criminalizing war crimes and enforced disappearances, establishing
a witness-protection program, developing a national reparations
policy and providing psychosocial support for victims.

The Big Picture Housing for all:

Viability & Roadblocks
BY INSIGHTS SEPTEMBER 24, 2015

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The Big Picture Housing for all: Viability & Roadblocks

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Summary:
One of the most enduring problems faced in this country has been
that of housing shortage. It is starkly evident in the fact that about
100 million people live in slums in India. With increasing
urbanization this problem has been only growing exponentially. In
urban areas, India faces a shortage of over 20 million houses at
present. Reports indicate that by 2031 about 600 million people live
in urban areas, about 200 million more than at present. The union
cabinet has approved the Housing for All schemes by 2022 with a
slew of measures aimed at helping people to build houses through
financing apart from redevelopment of slums among other things.
This scheme was announced in the budget this year.
The programme is a key promise in the Bharatiya Janata Partys
manifesto for the Lok Sabha election in 2014 a pucca house for
every family by the 75th year of Independence. Central grant of an
average Rs. 1 lakh would be available for a house under the
scheme. Even the State governments can exercise flexibility in
spending the grant for any slum rehabilitation project using land as
a resource for providing houses to slum-dwellers. An interest subsidy
of 6.5% on housing loans availed up to a tenure of 15 years will be

provided to economically weaker sections/lower income group

(EWS/LIG) categories. It is a Centrally sponsored scheme.
The fundamental problem in not achieving housing for all is not
really shortage of resources from government side. It is more of a
planning and regulatory issue. People are forced to live in the slums,
which are in the heart of cities, more for a economic, safety and day
to day commutation needs. This is the major reason for the houses
built by the government outside the cities laying vacant. 90% of
Indias housing problem is not of absolute homelessness. majority of
people are living in houses that are not fit for human habitation.
People are forced to live in the illegal settlements because of the
commutation problem in urban areas. They do not have access for
basic facilities. Hence, legal recognition of their existence is
necessary.
Various governments at the centre have been taking a slew of
regulatory reforms such as allowing foreign direct investments,
improving access to credit by households, providing tax incentives
on housing loans. This has propelled private sector participation in
urban housing development. However, it has largely resulted in the
development of Middle Income Group (MIG) and High Income Group
(HIG) houses, leading to significant shortage of EWS/LIG or
affordable houses. Economically weaker sections/lower income
group (EWS/LIG) categories houses constitute more than 95% of the
housing shortage in 2012. The development of urban affordable
houses has been limited due to several structural issues making it
unfeasible business proposition for the private sector.
Major structural issues restricting private sector participation in
urban affordable housing are:

Rapid urban planning process.

Lengthy and complex Approval procedure.
High cost of development.

Restrictive development norms.

Cost overrun and project delays.

Unless the above-mentioned issues are addressed, it is difficult to

achieve the stated objectives of the Housing for all by 2022 scheme.

Lok Sabha TV Insights: Nepals New

Constitution
BY INSIGHTS SEPTEMBER 25, 2015

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Lok Sabha TV Insights: Nepals New Constitution

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After a process of eight years, Nepal has turned from Hindu
Monarchy to Secular Democratic Republic country. The recent
Constitution has divided Nepal into 7 Provinces and has provision for
Bicameral legislature.
But this Constitution is being considered as constitution in haste. It
is also said that wishes of political leaders have been forced for
short term political ambitions and this process is a kind of backroom
dealing.

The adoption of constitution has led to opposition and violence in

many parts of the country. Few sections of people are not happy
with the existing provisions of the constitution.
According to analysts, the hasty process has been done under
Chinese pressure. Other than China, European Union and American
interests are also involved in this. But, there are no evidences to
support the same.
How did India play its role ?

Throughout the process of constitution-making in Nepal, India

has supported a federal, democratic, republican and inclusive
constitution

India was a facilitator of the peace process between different

stakeholder communities (especially from Himal, pahad and
Terai) in Nepal.

Election Commission of India helped Nepal in conducting two

Constituent Assembly elections in 2008 and 2013.

India was a guarantor of a 2008 pact between the Nepal

government and Terai forces.

Indias foreign secretary has been assisting the representatives

of Nepal in framing the constitution.

Indias PM made visits to Nepal urging the Nepals CA to adopt

a consensus-based constitution. Similar messages were
conveyed by Indias MEA.

The Indian embassy in Kathmandu had been actively

monitoring the framing and promulgation of Nepalese
constitution.
What are the concerns for India on recent constitutions ?

The present format of the constitution is not inclusive

The past assurances have gone in vain.

Aspirations of all regions and sections of society have not been

met.

India wants a stable Nepal, future instability can also lead to

heavy in-migration in India.

India has an open border with Nepal. Bordering states like

Bihar had raised concerns of violence in Terai region spilling over
to India.
What India can do ?

Should review traditional partnership since the political

structure has changed. Dealing with democratic country now
would be different than earlier.

Should involve due to strategic reasons.

Indias concern was to learn from Indias diversity and make

same provisions for the diverse Nepal.

Indias cold reply is to show dissatisfaction and has also sent a

public message to Nepali citizen.
Why Nepal is becoming federal ?

For Balanced regional growth and development

Demand from Madhesi people and other groups like Tharu, etc.

Due Ethnic structure which represents widespread diversity

What are the issues involved ?
Related to Constitution:

Provinces have been carved out keeping political interest and

Demarcation does not follow identity basis or geographic basis.
The demand was for single identity basis federalism.

Interest of Marginalized group have been not promoted

Delineation of electoral constituencies in the Terai (where more

than 50 per cent of Nepals people live) which has not been done
on the basis of the population in the plains;

Other complaints relate to citizenship norms that disallow

children of Nepali mothers married to foreigners from inheriting
Nepali citizenship.

Women groups are also opposing for representations,

citizenship and marriage issues= created categories of
citizenship = causing division = restricting empowerment
Related to present situation :

Nepal government is being insensitive towards people and

sending worst attitude towards people.

Country has been paralyzed by curfew, ongoing violence and

people are dying.

Mainstream media also opposing the narrow response and

attitude of Government

Traces of anti-Indianism are being found

Trust deficit within regions like Kathmandu and Terai regions,

which is dominated by Madhesi group who live in southern plains
of Nepal
Impact

May distort the India- Nepal relation

Desire of China to involve can create complexity.

Parties have assured that federal boundaries can be changed

later as it has divided Madhesis in 5 provinces and they are
protesting against it.

The Big Picture Refugee crisis in

Europe: Why is it ballooning?
BY INSIGHTS SEPTEMBER 15, 2015

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The Big Picture Refugee crisis in Europe: Why is it ballooning?

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Summary:
Tens of thousands of refugees have been pouring into various
countries in Europe from various west asian countries, mainly from
Iraq, Syria, Turkey and Afghanistan. This migration is mainly to

escape from destruction and death in these war torn countries and
find a suitable place to reconstruct their lives. Being seen as the one
of the biggest human tragedies of the decade, this has assumed an
international dimension, as pressure is building up on europe to
accommodate these exodus of people. Germany and Sweden are
the most preferred destinations for these helpless refugees.
However, after having allowed for few weeks, Germany has now
decided to stop the infiltration. Some european countries are
showing unwillingness to accommodate these refugees.
The refugee crisis ballooning in Europe is now considered by the
United Nations to be its greatest since World War II. The crisis is also
because of political instability, conflict and poverty in Africa and
some Middle east countries. Sometimes, these migrants meet with a
horrible fate. Countries such as Italy and Greece are also receiving
the bulk of these refugees. In last one year, these two nations took
in more than 200,000 people. Europes porous borders have also
enabled many to move freely into other countries. Desperate
migrants have attempted to enter Europe by crossing the
Mediterranean Sea, with the help of smugglers.
Syrians, displaced by the brutal fighting that has wracked their
country since 2011, are the largest group among those attempting
to reach Europe. Including those displaced within the country, more
than half of Syrias population has been uprooted since the war
began, and Syrians are almost single-handedly driving the recent
uptick in displaced people around the world.
Now, the onus is on European Union to do a better job of handling
what has become a major humanitarian challenge. EU should extend
its efforts to include better housing and processing of asylum
seekers. Uniform standards followed by all E.U. countries would help.
The lack of political consensus among members of the EU on
handling the crisis has led to rise in populist resistance to migration

and growth of anti-migration parties. The challenge for Europe is

clear. If it cannot deliver the goods within the framework of
consensus, it is in deep trouble because the immigrant crisis is
bound to crash into the Euro crisis.
The public attitude towards migrants has shifted significantly and
politicians in many countries are now under pressure from their
electorates both to accept more refugees and to help forge an EUwide solution to the crisis.
Supporters of the mass migration say that migrants are a welcome
boost for Europes flagging labor force. In Germany, there is a high
demand for workers trained in mathematics, information technology,
natural sciences and technology. While migrants could help boost
the labor force, there are fears among more cautious observers of
the migrant crisis in Europe that many migrants arriving from the
Middle East and Africa are not skilled or educated, and therefore
could be burden on states pressed public finances. Anti-immigration
groups claim that an influx of migrants will put further pressure on
public services such as healthcare, housing and education systems.
Britain has adopted a different stance towards the refugee crisis
from that of other EU countries, emphasising that Syrians should be
resettled directly from camps, rather than accepting those who
come to the UK after travelling through Europe. This divergence has
led to tension among EU nations, threatening the prime ministers
plans to renegotiate the terms of UK membership of the EU ahead of
a referendum by the end of 2017.
Other proposals to tackle the problem:
Immediate humanitarian aid to refugees travelling within the
EU or near its borders

Full funding for UNHCR emergency budget

Prima facie refugee status for all Syrian applicants in the EU

Overseas asylum-processing centres

Make the Mediterranean safe
Increased resettlement to the US and Canada
Appoint a Special Representative for Human Rights in Migration

he Big Picture Maharashtra Order:

What is Sedition?
BY INSIGHTS SEPTEMBER 16, 2015

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The Big Picture Maharashtra Order: What is Sedition?

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Summary:
The debate over what constitutes sedition, an act against state as
described under section 124A of the Indian Penal Code (IPC), has
been revived. The issue has cropped up again following a circular
issued by the Maharashtra government; with guidelines to the police
detailing when and in what circumstances they can evoke the
sedition charge. This comes five months after the Bombay high
court had rejected the charges of sedition against a cartoonist. The
Maharashtra governments circular is being seen as violation of the
freedom of speech as well as dangerous as any criticism of a
politician or elected representative can be considered as sedition.

The larger issue is whether the colonial concept of sedition should

still be in the statute books.
The circular containing guidelines to police with regard to invocation
of IPC Section (124-A), says sedition clause can be invoked against
whoever, by words, either spoken or written, or by signs or
by visible representation, is critical of politicians, elected
representatives belonging to the government. However, the
section will not be invoked against those trying to bring change in
government through legal means without hatred and contempt.
Legal experts say that the Maharashtra governments notice on
sedition charges has been found to be against the spirit of a High
Court order. They say that the definition of sedition is quite clear in
legal provisions and a High Court order has further clarified what
does not include sedition. The High Court, in March 2015, had said
that a citizen has a right to say or write anything critical about the
Government, or its measures, as long it does not incite violence or
intended to disrupt public peace and create disorder. The HC had
also directed the police to scrupulously implement new guidelines
issued by the Maharashtra government that place checks on filing of
frivolous sedition cases. The issue had been raised during the
hearing of a public interest litigation dealing with the arrest of
Mumbai-based cartoonist Aseem Trivedi in 2012 and the charges of
sedition brought against him under Section 124A for drawing
objectionable cartoons.
However, the new circular has excluded certain key words from the
high courts guidelines so that it now states, Words, signs or
representations to be treated as seditious if they are against a
person who is shown as representative of the government whereas
the original HC paragraph read, Words, signs or representations
against politicians or public servants by themselves do not fall in
this category unless the words/signs/representations show them as

representative of the government. The vagueness of this clause

has people flaying the circular as it could amount to gagging.
Experts say that commenting on or criticizing the government or its
actions is not the same as disloyalty.
Sedition is an offence where words, signs or visible representations
are aimed at attracting hatred or enmity against a government.
Under Section 124-A of the Indian Penal Code, the maximum
punishment for sedition is life imprisonment. The SC had earlier
upheld the constitutionality of the section but clarified that only
activities involving incitement to violence or intention or tendency to
create public disorder or cause disturbance of public peace could
amount to sedition. A five-judge constitutional bench of the SC in
1962 in Kedar Nath vs State of Bihar had held that comments,
however strongly worded, expressing disapprobation of actions of
the Government, without inciting violence, would not be penal.
The recent states circular was issued on the basis of guidelines
submitted by the former advocate general and recorded by the HC
in its March 2015 judgment while dropping a 2011 sedition charge
against cartoonist Aseem Trivedi for his cartoons to protest
corruption. As safeguard, the guidelines require a district law officer
and later a public prosecutor to give their written opinion before a
case is registered. But most legal experts say these safeguards are
not enough.
A PIL has also been filed in the High Court against the circular. The
High Court has granted two weeks to the state government to file its
reply on this public interest litigation (PIL), which has sought
trashing of a government circular defining guidelines for police to
slap sedition charges.

The Big Picture Has bitter politics

made Parliament dysfunctional?
BY INSIGHTS SEPTEMBER 14, 2015

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The Big Picture Has bitter politics made Parliament dysfunctional?

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Summary:
After having waited for three weeks to arrive at a consensus to
convene a special session of parliament, the government seems to
have given up the idea. It has gone ahead and got the monsoon
session, which ended on August 13 , prorogued. This means that
there is no hope of any special session to clear the Crucial GST bill.
The government, now, will have to wait till winter session to take up
the bill. It means the likelihood of implementing Goods and Service
Tax from April 1, 2016, as promised earlier, is in all likelihood not a
possibility. Meanwhile, the war of words between leaders in the
parliament and the leaders in the opposition has further widened
the gap, affecting the efforts for consensus in the parliament. This
has resulted in a dysfunctional parliament.
th

This decision is also being termed as an inescapable decision.

Opposition leaders say that this is mainly due to the inability of
government to arrive at a consensus. They allege that the
government has not reached out to the opposition in the manner in
which it should have done. There were no attempts by the
government to arrive at a middle path. Some experts call this war of
words between the parties as pre election heat which gets
dissipated after some time. Experts believe that accomodating
oppostions views is necessary for smooth functioning of the
parliament. Legislature is a shared premise.
There is wide consensus that the goods and service tax is good
primarily because it stops the cascading of taxes, unites goods and
services under one head, reduces leakages and brings more
products and services into the tax net.
The Congress-led opposition in Rajya Sabha has managed to trip the
two bills that the Modi government had set its heart on. It is also
being said that the present government is undermining the position
of the Rajya Sabha. members of the Rajya Sabha are elected by
members of the state legislatures. In the Indian federal system, the
Rajya Sabha represents the states. Before Independence too, the
Chamber of Princes, which was transformed into Rajya Sabha,
represented large chunks of princely India. In this chamber, the
people of the princely states were present, though indirectly. The
Rajya Sabha is a key element in the federal system of India.

The Big Picture Oil and Gas auction:

How will the new Model work?
BY INSIGHTS SEPTEMBER 11, 2015

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The Big Picture Oil and Gas auction: How will the new
Model work?
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Summary:
In a significant change in policy connected to oil and gas production,
the NDA government has decided to auction 69 fields based on
Revenue Sharing Mechanism instead of the existing Production
Sharing Contract. The Production Sharing Contract with Reliance
Industries had come in under controversy leading to the issue being
for arbitration. The new mechanism will be applicable to marginal
fields. It is also to be noted that out of 69 fields to be auctioned, 63
had been relinquished by ONGC and remaining 6 by Oil India as they
found it not viable to explore because of the small size of the fields
apparently. Meanwhile, as part of this policy the government has
allowed the operators who win the auction to sell at a price they fix
without the interference of the government. Presently, in case of
major fields, government has been fixing the prices. However, a
committee appointed by the government under the chairmanship of
Vijay Khelkar had recommended that Production Sharing Mechanism
is better that Revenue sharing to attract investments.
In production-sharing contracts, companies win blocks by quoting
the highest minimum work programme and recover their investment
before sharing profits with the government. This model was

criticised by the Comptroller and Auditor General and also by a few

government-appointed committees.
Kelkar comiittee had argued that production sharing is more suited
to attract investment. The committee was against accepting the
biddable revenue-sharing contract model due to the inherently
misaligned risk-return structure which leads either to lower levels of
production due to resultant reduced exploration efforts and lower
recovery ratio, or to high windfall gains to operators, encouraging
contract instability due to political economy factors.
The new bidding system will also mark a change in favour of a
unified licensing regime that the government has been working on.
Licences will cover all hydrocarbons found in the field, including oil,
gas and shale. The new policy also stipulates winning bidders will be
exempted from paying cess on crude oil and gas production to the
Centre. Oil companies are now required to pay Rs 4,500 as cess on
every tonne of output from nomination blocks. The Centre collected
Rs 15,934 crore as cess on crude oil from explorers in 2014-15.
However, the royalty rates applicable to these fields will be the
same as those applied under the New Exploration and Licensing
Policy (Nelp): 12.5% for onshore blocks, 10% for shallow discoveries,
and 5% for deep-water blocks in case of oil. Royalty rates for gas
production will be 10% for onshore blocks, 10% for shallow water,
and 5% for deep-water blocks.
Revenue Sharing mechanism will safeguard the governments
interest in case of a windfall arising from a price surge or a surprise
geological find. The revenue-sharing matrix over the life cycle of the
field will be directly linked to output levels and price. The
government has not kept a fixed revenue share because it would not
have protected the Centres interest in case of any windfall gains.

However, some experts say that given the current low oil price, this
new policy might not attract much investor interest.

Lok Sabha TV Insights: Naga Peace

Deal
BY INSIGHTS AUGUST 6, 2015

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Lok Sabha TV Insights: Naga Peace Deal

Archives
05 August 2015
Peace deal has just been inked between Government
of India and National Socialist Council of Nagaland (IM) and this will
be perhaps biggest landmark towards achieving stability and peace
in the region. For development of northeast and overall success of
Indias Act East policy, peace and stability are prerequisite.
Nagaland issue has been there even before independence. In 1918,
few educated Nagas came together to form Naga Club. The club also
gave representation to Simon Commission in 1928, to claim their
distinctness from rest of India. From very beginning they have been
rallying for sovereignty from India. But problem is that areas
inhabited and claimed by them are not their exclusive claims. There
are numerous other tribes and cultures who claim same region to be
their homeland.

Nagas are divided in numerous factions who have bitter differences

among them. In past, major violence was seen occurring among
them. They also claim some areas of Manipur, Assam and Arunachal
Pradesh, which they say are part of Greater Nagaland. Before
Independence, British demarcated Indo-Burma boundary, due to
which some Naga areas went into Myanmar.
Nagaland people form Naga National Council (NNC) declared
independence in 1954 which followed armed response from Indian
state. This followed negotiations which curtailed into separate
statehood in 1963, later it was also given special state status. By
this time Indian forces had unleashed disproportionate force on
nagas and this caused resentment which revived voice of
separatism. Finally, peace accord in 1975 Shillong Agreement was
signed and top naga leaders joined civilian politics. Still some people
refused to give up and formed National Socialist Council of Nagaland
(NSCN).
Main interest of Nagas has been to protect their unique cultural
identity and autonomy in their affairs. This time government has
been sensitive enough to explicitly recognize this uniqueness.
Further, in recent deal NSCN (IM) has been treated as an equal
power by GOI. Content of agreement is not disclosed to public. In
previous such deals it was seen that much fanfare and public
scrutiny results in deal being sabotaged.
Main challenge for government is to meet expectation of Nagas
without hurting interests of surrounding states. Deal is said to have
provided for cultural integration of Naga areas in surrounding states.
This wont include territorial claims. It may be on the lines of Ladhak
or Darjeeling Autonomous Hill Development Councils. However,
political parties of other states will undoubtedly resist even this
interference, atleast to drive political mileage out of the issue.
Further, it will be even harder of NSCN (IM) to bring other factions

and more aspirational nagas on board. Within naga community there

might political mobilization against NSCN (IM) on rhetoric that
Nagas interest has been undermined. However, we have quite
strong government in center and NSCN (IM) is perhaps most
influential group in north east. In such scenario, it is reasonable to
expect that peace will prevail.
This government has, since beginning, given special attention to
historically neglected regions, be it Jammu and Kashmir, North East
or Maoist affected region. For north east, exchange of enclaves with
Bangladesh has resolved a long standing problem. Recent
engagement has also provided direct passenger transit route from
Bangladesh through bus, which runs from Agartala to Kolkata via
Dhaka. This has reduced travel time from three days to one day. Rail
link is also being developed between Tripura and Bangladesh.
Further, on recent visit PM also signed MOU on use of Chittagong
and Mongla Port in south east Bangladesh. This will save enormous
freight costs and time for trade with North East. So recent
development fit well in larger picture and it remains to be seen that
whether both parties live upto the spirit of the agreement.

The Big Picture OROP Decision:

Whats in it?
BY INSIGHTS SEPTEMBER 8, 2015

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The Big Picture OROP Decision: Whats in it?

Summary:

The One Rank One Pension issue, for which the pensioners of the
Indian defence forces have been agitating for the last several years,
has been announced by the government. Accepting the demand, the
defence minister said that the commitment of the government has
been fulfilled. The PM himself clarified that the defence personnel
who retired voluntarily would also be covered under the OROP
scheme. The defence minister had earlier said that those persons
who had retired voluntarily would not be covered under the scheme.
The defence minister also said that despite the huge financial
burden the scheme will still be implemented and revision of pension
will be done after every five years. The protesters, however, have
decided to continue their protests as most of their demands were
not fulfilled.
OROP is a scheme by which every retired (pension-eligible) soldiers
belonging to a particular rank, will be getting the same amount of
pension irrespective of the date he has retired on. OROPs history
dates back to 1973. It was in that year the Indian National Congress
terminated OROP. This decision of the government was highly
criticised and since then, has been a matter of strong controversy.
OROP is a complex issue. A thorough examination of interests of
retirees of different periods and different ranks is needed. The interservice issues of the three forces also require consideration. The
estimated cost to implement the scheme would be Rs 8,000-10,000
crore. Arrears will be paid in four half-yearly instalments. Close to 26
lakh retired servicemen and over six lakh war widows stand to be
immediate beneficiaries of the scheme. Pension will be re-fixed for
all pensioners retiring in the same rank and with the same length of
service as the average of minimum and maximum pension in 2013.
The veterans main concerns centre around premature retirees,
pension revision, mode of re-calculation and base year for reworking
pensions. They have been assured that premature retirees will not

be deprived of OROP, but theres no word from the government yet

on the other demands. The defence minister has also announced
that a one man judicial commission would be formed to look into the
anomalies. But, veterans are opposing this. They want a five
member committee.
Other unfulfilled demands of veterans:
Government wants to implement it from July 1, 2014 but the
veterans want it from 1st April, 2014.

OROP offers an average of minimum and maximum pension

scale in 2013 but the veterans want a maximum of the pension
scale in 2013.

OROP grants a revision every 5 years. The veterans wanted

revision in one or two years.

Government wants a one-member judicial commission to

submit report in six months while the veterans demand a fivemember team under Defense Minister to submit report in one
month.

Initially it was decided that the OROP will also be applicable for
war widows, disables and for those who took voluntary
retirement. This has also stirred disagreement between the
government and the veterans
Arguments for OROP:

Jawans retire at the age of 35 whereas a civilian can continue

in service till the age of 60. So the salary, based on which the
pension is decided is very less when compared to the salary
officers are entitled at the age of 60. This rule financially
handicaps a soldier. OROP will be beneficial in this situation.

Also, once these soldiers have retired at the age of 35, they are
no longer absorbed in the workforce of the country, thus ending
their career permanently. OROP can be a way to express the
obligation of the government towards these veterans.

Arguments against OROP:

OROP will be very expensive and will put a huge financial
burden on the government. This is not an onetime cost as this
cost will keep on increasing as one pay commission succeed
another.

The other uniformed personnel like the paramilitary and the

state police forces will also start demanding to put them within
the folds of the OROP

The legal argument states that the person who retired 50 years
ago cannot be paid the same pension as someone who retired
now. Also according to OROP, the veteran who served as colonel
for 5 years will get the same money as someone who served in
the same post for 2 year. This is the most important legal
challenge before OROP.
Currently, officers who have served at least 20 years in the military
get 50% of their last salary before retirement, as pension.

Lok Sabha TV Insights: RBIs

Monetary Policy
BY INSIGHTS AUGUST 5, 2015

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Lok Sabha TV Insights: RBIs Monetary Policy

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04 August 2015
Under third bi-monetary policy review, RBI left policy rates
unchanged. Repo stands at 7.25% and Cash reserve ratio at 4% of
NTDL. There was significant anticipation of further rate cuts given
lower oil prices and negative WPI inflation for 8 month in line.
th

Reason given for unchanged rates in mainly that transmission of

past RBI actions is not yet seen in banking sector. RBI has
continually cut policy rates starting from January this year, but
banks have not yet passed those cuts to borrowers. In such scenario
further cuts on RBIs part, would have made little difference.
Banks have their own problem, which government and RBI are well
aware of. Stagnant economy of last few years has resulted in piling
up of NPAs for banks, more particularly Public Sector banks. For PSBs
gross NPAs stand at 5.43%, which were 4.72% an year ago. These
NPAs are the monies lent by a bank on which it is neither receiving
interest, not principal repayment. By not passing on benefit of lower
policy rates to borrowers, banks are compensating themselves for
such losses by retaining higher margins.
NPAs are concentrated in infrastructure and core sector mainly in
power, highways and steel. In case of power sector, Power
Distribution Companies or DISCOMs are in quite bad shape. They are
in effective control of state governments. Reason for this lies in
inefficient transmission infrastructure in place that results in high
technical and distribution losses. Further, with slowdown in industrial
activity, demand in power (in turn prices) has gone down
significantly. This has rendered some new investment in power
sector dormant and less remunerative.
Further, all commodity based businesses have taken a hit because
of lower global demand and instability. China was till now, sink of
various minerals and commodities, but it is rapidly cooling down.

Worldwide, no big economy other that U.S. and India is giving

positive indicators. Even in these two economies indicators are, at
best, mixed.
Indian exports fell for 7 straight month due to reasons cited above.
Another reason is that of exchange rate. Recently, Indian Rupee has
not got weakened against Dollar as much as currencies of other
competing economies have. This has made Indian exports expensive
in comparison. This trend is highly problematic given stress on Make
in India which relies more on exports. Clearly, India, for the time
being at least, will have to boost up its domestic markets. Domestic
market in turn needs an injection of liquidity.
th

Lower liquidity in economy has led to weak demand in the economy.

Due to this industries are operating at quite low capacities. In turn,
growth in Index of Industrial production (IIP) has slowed down to
2.7% vs 4.1% last month. This also results in lower profitability and
hence higher NPAs. This was one of the reasons which merit urgent
rate cut. Injection of liquidity creates demand in economy. Car loans,
Home loans, Consumer good loans etc. go up with the lower rates. It
results in higher demand and in turn, higher supply. This way full
capacities can be achieved, upon which firms will think of investing
in new projects. This will sort out NPA problem of banks too. In short,
lower interest rates kick starts whole investment cycle in the
economy.
But significant risk is of inflation going out of control, which was
seen in past. Ample liquidity aided with low interest rates and liberal
fiscal policy, in later part of last decade resulted in double digit
inflation which is still a big headache for policy makers. In fact,
current situation is aftereffect of such policies only.
Inflation was only last year moderated by sustained high policy rates
and CRR ratio by RBI. But as expected, it killed growth of Indian

economy. Indian economy is struck into wage- price spiral, which is

mainly due to supply side constraints. When economy registers good
growth, real supply of necessary goods doesnt increase
proportionately. Former result in higher wages which boosts the
demand of food items first. It results in higher food inflation, is which
fatal for political economy of ruling regime.

Source Indian Express

Consumer Price Index (CPI) inflation for the month of June rose to
5.40% versus 5.01% in May. CPI food inflation for June rose
substantially to 5.48% versus 4.8% in May.
CPI inflation touched its low in November last year and has been
rising since then. RBI has adopted inflation targeting under which
Monetary Policy targets only CPI inflation. Target for current fiscal is
6%, while for 2017 and onwards, it should be retained at 4% with +/2% tolerance band. So, one of the reasons of continuity of old policy
rates is recent jump in CPI inflation, food inflation particularly.

Some observers argue that cooling down of WPI should also be

taken into account. But RBI governor asserted that its CPI which
affects ultimate consumer. Further, WPI doesnt include numbers on
service sector. Moreover, as already explained, reasons for lower
WPI lies in global slowdown, while CPI movement are due to
dynamics of domestic economy.
Theres also debate going for composition of Monetary Policy
Committee and veto power over its decisions of RBI Governor. To
this governor said, that such committee helps in a wiser decision as
risk of a bad estimate is spread to a committee. Further, this
ensures stability and continuity in monetary policy in event of
change of Governor. On veto power, he said that, separate
committee makes little sense if he continues to retain veto power.
This (committee) will need an amendment in RBI act. Current
scenario entrusts government with power to direct RBI over its
monetary policy, but so for this power has never been used.
Governor said that further policy action depends upon 4 factors Viz.
Monsoon (due to its effect on prices), course taken by Federal
Reserve (tightening vs easing), transmission effected by banks of
past RBI actions and inflation indicators. It typically takes two to
three quarters to effect of monetary policy to seep down. This time
it will take a bit longer. It is expected that results will start showing
starting from next couple of months.
Government also has plans to infuse new capital in Public Sector
Banks. Their current need is estimated at Rs. 150000 200000
crore, while current plans are to infuse Rs. 70000 crore. Many
academics have pointed out that lowering interest rates just is not
enough for revival of economy and more urgent is to redress capital
woes of the banks. Banks can extend further credit to good
borrowers if extra help is expected to revive their project. Banks can
otherwise takeover hopeless projects, but this is only option of last

resort. It has been seen that banks never get their loans fully
recovered this way. So, best option for bank is to help promoters to
revive the project.

Lok Sabha TV Insights: NITI Aayog

BY INSIGHTS JULY 31, 2015

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Lok Sabha TV Insights: NITI Aayog

Archives
31/07/2015
NITI Aayog recently constituted an expert group to chart out
detailed contours of proposed mission relating to promotion of
Innovation and entrepreneurial spirit. NITI Aayog was built on
promise of cooperative federalism, but states are shying away from
taking up meaningful constructive role in the body. Few days back
2 meet of Governance Council was held and many Non- NDA ruled
states chose to stay away.
nd

Erstwhile Planning Commission was a decaying body which was

turning into just another bureaucratic wing of the government. All
the main policy and finance decisions regarding different ministries
and different states (horizontal and vertical) were taken at this level.

It was often alleged that planning commission is out of sync with

ground realities. About 80% of total centers assistance to states
went through PC determined Centrally Sponsored Schemes.
Now NITI Aayog is more of a think tank and a platform where
representatives of different states and central ministries can meet
decide future discourse. Earlier this job was meant to be done by
National Development Council, which failed miserably. It was often
lamented by Chief Ministers that they were made to sit as audience
in NDC meets.
Having said this, NITI aayog as of now too lacks internal subject
expertise and domain specialists. It relies on external expertise
which will be recruited as and when needed, as recently Expert
Group of domain specialists was constituted for Atal Innovation
Mission. Internal expertise is imperative for long term success of the
institution.
This year Government accepted recommendations of 14 F.C. under
which states will get 42% of total divisible pool. This is the spirit of
cooperative federalism and envisioned Team India. Through this
states are supposed to chart out plans as per their own supposed
needs. However, time and again central schemes are still being
launched like Swacchh Bharat Mission, PM Jan Dhan Yojna and Smart
City project. Further, P.M. recently reaffirmed its commitment to give
Bihar a special package and special status. This all doesnt fit well
with cooperative federalism. It seems central government through
its schemes is focusing to rationalize subsidies, improve
infrastructure etc. Swacchh Bharat Mission and Beti Bachao Beti
padhao andolan are more of attempts toward moral revival of Indian
masses. These are much necessary missions, have less to do with
money spent and more with change in societal values.
th

Government has so far not made clear that whether Five Year Plans
will be continued or not. 12 FYP will expire in 2017, in case there
will be 13 FYP then this is the best time start preliminary work. Five
Year Plans are reminiscent of Planning Commissions centralized
planning. It seems unlikely that NITI Aayog will take up such work.
Further, when more untied funds are with states, centers role to
direct them is curtailed automatically.
th

th

Notwithstanding noble intentions behind cooperative federalism,

there are some serious concerns. State politics is much parochial
and polarized in comparison to national politics. State governments
are much more vulnerable to falling prey to populism. For some
states fiscal management is something alien and they rampantly
distribute laptops, mobile phones and other freebies. Center must
frame some minimum rules regarding utilization of this money. For
this problem, Center is planning to inculcate competitive spirit
among the states. States will be ranked on basis of their
performances on various indicators, and this report card will have
implications for the future political prospects of ruling party, as well
as future financial support from the Center.
There are two initiatives by NITI Aayog having bearing on innovation

Atal Innovation Mission

The Atal Innovation Mission (AIM) is being set up under NITI. AIM will
be an Innovation Promotion Platforminvolving academics,
entrepreneurs, and researchers drawing upon national and
international experiences to foster a culture of innovation, R&D in
India. The platform will also promote a network of world-class
innovation hubs and grand challenges for India.
Self-Employment and Talent Utilization (SETU)

The Government has established a mechanism to be known as SETU

(Self-Employment and Talent Utilization) under NITI Aayog. SETU will
be a Techno-Financial, Incubation and Facilitation Programme to
support all aspects of start-up businesses, and other selfemployment activities, particularly in technology-driven areas.

Lok Sabha TV Insights: Climate

Change Debate
BY INSIGHTS JULY 30, 2015

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LSTV Insights Climate

Change Debate
Archives
30/07/2015
Year 2015 is being tagged as a landmark year for global climate
change discourse due to Paris meet (COP 21) of UNFCC which will be
held in 2015. Its another thing that nothing much is expected from
the meet, but its outcomes will certainly give conclusive indicators
about the future of the earth. Climate change experts are already
claiming that we are tremendously late, yet there is some unrealistic
optimism that leaders will rise above their national interest and
think global.

Almost every big emitter (except India) has submitted its Intended
Nationally Determined Contributions (INDCs) to UNFCCC. USs INDC
promises reductions of 26-28% emissions of Greenhouse gasses by
2025 from 2005 levels. China has adopted other was it has
promised that its emissions will peak by 2030 and start declining
thereafter. Further, it claims reduction of emissions per unit of GDP
by 60-65% on 2005 levels by 2030. In case of Japan, reduction will
be 26.5% by 2030 from 2013 levels or by 25% from 2005 levels.
Other INDCs can be seen here. These are voluntary contributions
and no binding commitments.
A decision at COP 19 held in 2013 at Warsaw, invited INDCs from
all countries well in advance of Paris meet (or COP 21) which shall
include quantifiable reduction targets and some means to achieve
those targets. Developed countries want to limit INDCs to mitigation
only, while developing ones want adaptation and finance to be
included. INDCs of various countries put together are hoped to be
enough for achieving goal of limiting global temperature rise to 2
by 2030 as compared from pre- industrialization era, which is also
the official target of UNFCCC.
At the first place target in itself is quite modest, but any more
ambitious target will be utterly disregarded by most countries. By
now .8 rise is already observed and there is noticeable increase in
climate related natural disasters. Heat wave in India and Pakistan
claimed lives of about 3000 people. Erratic rainfalls are taking toll on
farm productivity. There is marked increase in random cyclonic
activity all over the world. All types of extreme weather events are
being observed. Intense summers, winters, downpours suggests that
target limit of 2 is quite modest.
Even if we accept that something is better than nothing and agree
with 2 target, INDCs promised by various countries indicate that
countries are non-committal toward target and trying to evade their

responsibility. Above mentioned INDCs are way lower than what is

required. U.S. has already expressed its inability to contribute more
owing to constraints posed by domestic politics. Now world bizarrely
expects India to contribute liberally to targets. India has not so far
declared its INDC, perhaps to observe commitments of nations who
are more responsible and then decide its course.
India owing to its sheer size and dense population is 3 largest
greenhouse gas emitter. However, its per capita emission is just
30% of that of China and 13% of USA. Further, above mentioned
data is about current aggregate emissions, if we take cumulative
historical emissions or legacy emissions, Indias contribution to
greenhouse gasses is just 2.5%. For this 2.5% of emissions India
cant be expected to contribute a lions share in total reduction.
rd

India has taken various measures Target of 100 GW solar power

and 38 GW wind power by 2022, clean energy cess of Rs. 100 on
Coal, High excise duty on petrol and diesel, there are attempts to
shift to cleaner coal technologies for which Ultra Mega Power
Projects are in pipeline, India has National Action Plan for Climate
Change (NAPCC) which contains 8 missions. Despite all this, Indias
reliance on coal will not abate in near future as 300 million Indians
are still waiting for electrification.
India is planning to submit two INDCs. One based on what its
domestic resources allow and other based on international support
regarding finances and technology. It is amply clear that India has to
maintain its developmental space. It has to provide atleast minimum
standards of living to Indians at all costs. India is already a low
carbon intensive economy. But if manufacturing sector picks up,
carbon emissions will follow. Yet India in 2010, promised that its
emission per capita of GDP will reduce by 20-25% by 2020, from
2005 levels. While India is on path of delivering on earlier promise, it
is expected to make similar but enhanced promise for INDCs. It can

be 45-55% reduction in emissions per capita GDP from 2005 levels.

Experts say this would be a reasonable target. But this will not in
any way contribute in absolute reduction of Indian emissions; in fact
they will probably double. India can only decouple 2-3% of its growth
from emissions. If its GDP grows at 8%, then emissions will grow at
least 6-5%.

Lok Sabha TV Insights: Greek Crisis

BY INSIGHTS JULY 24, 2015

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Lok Sabha TV Insights: Greek Crisis

Archives
24/07/2015
Greek parliament has approved the second set of reforms which
among other things include structural changes in Judicial and
Banking systems. Under this bill pension and tax reforms are not
included as they will be discussed later with troika negotiators.
Greece is in desperate need of Euro 86 Billion out of which it about
20 billion will be repaid immediately to various lenders. This, if
agreed by Troika, will be 3 bailout; first one was given in 2008. With
current state of affairs it appears that crisis has just been delayed
rather that prevented.
rd

Current Tax to GDP ratio of Greece is 177%, this itself is result of last
two bailout packages. In 2008, it was found that Greek government,
since its entry in European economic union was fudging its

accounts. This was unearthed by new government in Greece as by

that time repayments based on fudged accounts had become
impossible. This was perhaps due to Sub Prime crisis. This was
followed by first bailout package worth Euro 200 billion out of which
100 billion came from Germany and France. Part of this bailout is
due for repayment now.
Dr. Amartya Sen draws parallel among current approach of troika
towards Greek and post-world war 1 Treaty of Versailles. Treaty of
Versailles was imposed by allied victorious nations mainly Britain
and France on defeated Germany. It was very harsh on Germany,
which caused immense hostility in Germans toward allies. In turn
this all culminated into rise of Hitler and disastrous World War 2.
Austerity measure and their effectiveness is the raging debate all
over the world. To repay its loan without harming its economy
further, Greeks need tax revenues, which will only come if people
spend some money. Private and Public expenditure ignites demand
for goods and services in the economy. Under austerity measures
public expenditure is rolled back which harms the demand in
economy as people have to spend on new items more from their
own pockets. This results in shrinkage of their total consumption.
With austerity measures it is unlikely that tax revenues will rise.
When US was in Great Depression in 1930s what did they do? They
surely didnt followed austerity, rather quite opposite of it. President
Roosevelts New Deal, following theory given by John Keynes, aimed
at enhancing public spending in a big way. Soon demand picked up
(due to govt. expenditure quite opposite of austerity), in turn
manufacturing rose and then employment too jumped. However,
USs decision was a sovereign one; it was not dictated by outsiders
as in case of Greece.

It should be noted that problem of US was domestic one, while

Greek problem is domestic as well as external. In current scenario,
Greece even if left of its own, is unlikely to get out of the crisis.
Reason is Greece has almost no manufacturing or service industry
base, where its human resource could engage productively. Greeks
tourism industry needs serious revival. Greece has one of the best
qualities of Olive Oil, but most of it is sold to Italy in raw form, where
it is reprocessed and exported on huge markup.
To get out of this stagnancy, we cant expect Greeks will have
savings, investment and capital formation rates to be sufficient
enough for revival. What it will need is foreign direct Investment. But
again, Greece scores low on almost all important parameters of Ease
of Doing business. Theres political instability and lack of trust in
political institutions. Corruption is rampant.
To the core of this crisis are structural problems of European
Economic Union which consists of 19 countries. This union gives
monetary policy of these countries in hand of European Central
Bank. For fiscal policy it leaves each country on its own. Weak
countries are main losers in this arrangement. One reason that FDI
will stay away from Greece is that its not viable to invest in Greece
with current rate of Euro. Its like paying cashews for peanuts. For
the same reason Greeces export will be quite expensive and
uncompetitive. It appears that Greece deserves help from stronger
European countries.

Lok Sabha TV: Net Neutrality Report

BY INSIGHTS JULY 20, 2015

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Lok Sabha TV: Net Neutrality Report

Archives
07/20/2015
Recently DOT released its report on net neutrality, which at large
advocates strong support and commitment to protect net neutrality
in interest of innovation and telecom infrastructure. It stresses that
government should identify international best practices in this field
and apply them selectively with suitable modifications in Indian
Context. Net neutrality is defined by different interest groups and
governments in different ways which suit their interest. Indian
definition of Net Neutrality must be drawn in contextual ambit that it
is aspiring to turn itself into Digital India. So it becomes imperative
that quality, affordable and universal internet services are aspired.
Despite strong advocacy for net neutrality, a few suggestions has
irked different interest groups. Most hotly contested suggestions are

1. Regulate domestic VOIP calling.

Voice over Internet Protocol allows consumer to make calls using
internet data. Such services are being offered by applications such
as Skype, Viber, Hike etc. Telecom service providers claim that they
are losing regular voice call revenues due to growing popularity of
VOIP calling. Few years back they were getting just 5% of total
revenues from data (internet) services, now it has increased to 17%.
In developed countries revenue for data services is as high as 95%.
It will register stellar growth in future in case net neutrality is
ensured.
DOT panel recommended that only domestic VOIP calling be
regulated, as it is beyond scope of Indian administration to regulate
international data. But experts claim that it is impossible to
distinguish between two without violating privacy laws. It can be

done only by deep data packet inspection and use of data sniffers.
This will lead to surveillance of private data.
Rationale behind suggestion to regulate domestic VOIP calling is
that regular telecom calling is already regulated due to wide array of
concerns, security being one of them. Unregulated VOIP calling
draws unfair advantage in such scenario.
The report goes on to note that the current pace of VoIP has the
potential of disrupting existing domestic telecom revenue models
and that this may decelerate the pace of telecom infrastructure
expansion. The report adds that this would disrupt investment in
telecom sector which is much needed in order to increase
broadband reach, speeds, bandwidth capacity, etc.
2. Treatment of zero-rating :Services should be open to all
users & content providers
Zero rating plans attempts to create such alliances between content
providers (like Facebook, flipkart etc) and telecom service providers,
so that latter gives preferential to content of former. This is being
perceived as biggest assault on Net Neutrality.
For instance, if Flipkart, Facebook and Wikipedia enter into an
agreement with Airtel (300 million subscriber base) under which
former three will pay some charges to Airtel and in return Airtel will
allow its subscribers free access to their content. Overtime, many
people with limited use will stop buying regular internet plans,
relying on these three website. Given that Airtels subscriber base is
huge; this can seriously impact macro level competition in adverse
ways. Users can be forced to buy expensive products from flipkart as
they dont have access to amazon. By this, entry for newcomers in
market will be halted because of restrictions. Implications get even
more serious when there is a vision of Digital India under which
internet will be instrumental in providing all sorts of public services.

Above arguments are being hotly contested by telecom service

providers by claiming that such plans helps in extended reach of
internet services to rural and urban poor as they are available
without any extra top up. Argument holds weight, but it cant be
denied that long term ill effects matter more than short term
benefits.
Consequently, DOT suggests that any such plan should be open for
all content providers and there should be same terms and conditions
for all. This arrangement is being named as gatekeeping role by
service providers and regulatory intervention is suggested to
discourage it. They criticized Airtels Zero rating plan for its violation
of net neutrality.
3. Not to regulate over-the-top (OTT) messaging services
DOT suggests that messaging services provided by apps such as
Viber, Whatsapp etc. should be encouraged and there is no need to
regulate them.
Regulators have to interfere in free markets in cases where there is
market failure and monopolies are being established. Regulator
checks monopolistic powers and ensures that there is space for
other players to compete. There may be a viable scenario that
alliance between content providers may be allowed if they give only
limited preferential treatment to certain content. This may be
decided by regulator on case to case basis.
Recent report is just a part of big process. Report of Telecom
Regulatory Authority of India and A Parliamentary Committee on the
subject is yet to come.

Lok Sabha TV Insights: Skill

Development Challenges of Indian
Youth
BY INSIGHTS JULY 15, 2015

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Lok Sabha TV Insights: Skill Development Challenges of Indian

Youth
Archives
07/15/2015
July 15 is celebrated as World Youth Skills Day and Prime Minister on
this occasion is going to launch Skill India campaign. Skill
development is perhaps most important link in chain of aspired
economic vitality of India. India has as low as 4% workforce which is
formally trained. In comparison 42% in US, 75% in Germany, 80% in
Japan and 96% in South Korea are formally trained. There is obvious
proportional link between skill of workforce and level of
development in a nation.
Earlier skill development was overseen by Labor Ministry. Last year a
separate Skill Development Department was created, which was
finally converted to a full-fledged ministry i.e. Ministry of Skill
Development and Entrepreneurship (MSDE). This was done because
earlier there were about 70 odd initiatives under 20 different
ministries and departments. This resulted in inefficiency and
duplication of efforts. These all schemes will be taken over and
converged.
In new system, MSDE signs Memorandum of Understanding with
other ministries, departments or corporations. Under the agreement
latter helps in setting up curriculum for specific training and
provision of staff, knowhow etc. MSDE recently signed similar MOU

with Ministry of Chemicals & Fertilizers and Steel Authority of India.

It also inked a MOU with Railways Ministry, under which railways will
provide space for Skill Development Centers at Railway Stations and
trained manpower. This is a creative arrangement as railways have
both things in surplus. Further, classes at railway stations are likely
to work wonders with students from villages because of ease of
travel.
Various arms under Ministry are
1. National Skill Development Agency (NSDA)
2. National Skill Development Corporation (NSDC)
3. National Skill Development Fund (NSDF)
4. 33 Sector Skill Councils (SSCs)
5. 187 training partners
There is also demand for a legislation regarding Right to Skill, but
for this consensus among states and adequate capacity in terms of
infrastructure and trained teachers is prerequisite.
Last year Pradhan Mantri Kaushal Vikas Yojna was announced with
an outlay of Rs. 1500 Crore. This will be implemented by NSDC
through its training partners and benefit will be extended to 24
lakh students for this year. Students will be monetarily awarded on
final assessment.
Focus under the PMKVY would be on improved curricula, better
pedagogy and better trained instructors. Training would include soft
skills, personal grooming, behavioral change for cleanliness, good
work ethics. Sector Skill Councils and the State Governments would
closely monitor skill training that will happen under PMKVY.
Special care will be taken to align skill training with emerging needs
of the industry. This will require standardization of courses in which
industrial interest groups such as CII, ASSOCHAM or FICCI will help.

Another major scheme announced was Pandit Deendayal

Upadhyaya Grameen Kausalya Yojna under Ministry of Rural
Development which aims to fill gap between formal education and
marketable skills of rural poor. Further, Ajeevika or National Rural
Livelihood Mission is also there for rural India. It aims at creating
efficient and effective institutional platforms of the rural poor
enabling them to increase household income through sustainable
livelihood enhancements and improved access to financial services.
Currently there are three methods of skill training viz.
1. Vocational Training in schools Earlier it was available to class
11 and 12 students, but few years back level was lowered to
class 8 This was owing to high dropout ratio and to incentivize
students to complete class 8 at least.
2. Industrial Training Institutions These are both private and
public. Here government has not expanded its network, whereas
private institutions have shot up to 10000 in current times. These
need more regulation and transparency.
3. Onsite industrial training to be provided by corporates. It is
here that India lags behind. Indian corporates prefer to employ
already skilled workers. On the other hand, in developed
countries industrial culture mandates onsite skill development. To
promote onsite training apprentice act was amended last year.
It is private sector who holds the key to success of Skill India
campaign. It is the co-beneficiary with people who get imparted with
skill. As it is the end user of the skill, it will have to provide both
financial and human resources for skill development. In past many
attempts to jack up educational facilities failed just because of lack
of trained teachers. We just hope that government has learned from
past mistakes. Best thing in new initiatives is that they are universal
as there are no eligibility criteria. Anyone, at any age, with any or no
qualification can utilize the benefits.
th

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Lok Sabha TV NITI Aayog Meet and

Related Issues
BY INSIGHTS JULY 16, 2015

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Lok Sabha TV NITI Aayog Meet and Related Issues

Archives
16/07/2015
Yesterday 2 governing council meeting of NITI Aayog was held, in
which Chief Ministers of nine congress ruled states, West Bengal,
Odisha, U.P and Tamil Nadu chose not to participate. Main agenda of
the meet was to build consensus of proposed land acquisition
amendment bill. Non-committal behavior of states converts idea of
co-operative federalism and Team India into trash.
NITI aayog was established last year and consists of
1. Prime Minister of India as the Chairperson
2. Governing Council comprising the Chief Ministers of all
the States and union territories with legislature and
lieutenant governors of other Union Territories
3. Regional Councils will be formed to address specific
issues and contingencies impacting more than one state or a
region. The Regional Councils will be convened by the
Prime Minister and will be consist of the Chief Ministers
of States and Lt. Governors of Union Territories in the region.
4. Experts, specialists and practitioners with relevant
domain knowledge as special invitees nominated by the Prime
Minister
5. Full-time organizational framework.
nd

From long, states have lamented the fact that planning commission
was imposing irrelevant schemes on them. They used to argue that
they should be provided with more money, leaving them on
themselves. It was widely accepted that states as different as
Kerala, Bihar or Punjab have unique socio economic problems and
developmental priorities. While Punjab and Bihar need funds for
literacy oriented schemes, Kerala may utilize same money better on
tourism industry. Centralized planning is accused of causing lots of
resource wastage.
In NITI Aayog, states participate in main body, whereas in Planning
Commission their capacity to participate was limited through
National Development Council which was different body. Further,
there are so far 3 sub- groups chaired by Chief Ministers: Subgroup
on Centrally Sponsored Schemes, on Skill Development and that on
Swacchh Bharat Mission. Acceptance of recommendation of
14 Finance Commission for devolution of 42% of divisible proceeds
to states was another huge step toward cooperative federalism.
Now, states will hardly be able to blame centre for their own
inefficiencies.
Our constitution rightly puts burden of socio-economic development
on states. In line with this, almost all grassroot areas such as
education, health, agriculture, irrigation etc are covered in state list.
In past there is considerable evidence to suggest that it is only state
that can turnaround, make or break economy under it. Center can
just supplement its efforts. There are certain States which have,
irrespective of Central Government support, made rapid strides in all
spheres. Also there are states which irrespective of enormous
support of center, still stand nowhere. This all depends upon state
politics and administration. But unfortunately our media, civil
society, NGOs and overall national debate and discourse is centered
too much on Central Government.
th

As central issue of the meet was to sort out a way for land
acquisition amendment, it has been decided that powers will be left
with states to have their own strict Land acquisition law, if they
wanted. Central Government claims that it was some states only
who wanted amendments and that too some of them ruled by
different governments. It was reported that it was almost impossible
to acquire land or time of formalities under Social Impact
Assessment was prohibitively time consuming.
Experts say that neither the original law, nor the proposed one is
apt. Both laws stress that acquisition can only be done for Public
Purpose, but its definition should be more refined and precise.
Earlier private school and hospitals were classified under public
purpose but government agreed to exclude them. There is voice
against acquisition for development on PPP model. But it should be
noted that in PPP model ultimate ownership remains with
government. We all know that capacity of government enterprises to
build infrastructure is woefully inadequate. We can in no way rely
solely on BSNL and MTNL to achieve targets under Digital India
program. Similarly, public purpose also includes construction of
affordable housing. If target of Housing for all is to be completed by
2022, then private sector will have play role along with government,
in cases such as slum rehabilitation and redevelopment.
Original amendment bill specified 5 categories of projects in which
consent and SIA will not be required at all, be it acquisition for
public, private or PPP projects. These all 5 categories are of high
public utility
1.
2.

Defense and Defense production,

Rural infrastructure, including electrification, education and
health
3. Housing for poor including affordable housing (less than 800
sq. feet flats/ houses)

4.

Industrial corridors and infrastructure projects including

projects taken up under Public Private Partnership mode where
ownership of the land continues to be vested with the
government.
5. National Security
Bills was passed by Lok Sabha with following Amendments1. Land shall be acquired up to 1 km on both sides of designated
railway lines or roads for industrial corridor.
2. Government shall undertake a survey of wasteland and arid
land and maintain a record.
3. A provision is included in the Bill for providing employment to
project affected families.
4. Hearings to be held in districts where land acquisition takes
place.
5. Courts wont need government nod to take cognisance of
offence under CrPC.
6. Five year clause for completion of project on acquired land
will be augmented and amended by the length of the project. No
acquisition will be transferred to private persons.
7. Compulsory employment to be given to 1 member from every
dependent family.
8. Land acquired for Hospitals, Educational Institutions and other
Social Projects will not come under definition of Industrial
Corridor.
9. Government to ensure before notification land acquired would
be bare minimum required for a project.
New session will start on 21 July and how things get shaped is yet
to be seen. Government wants to FastTrack investments and
infrastructure development. This is main motivation behind this
amendment. But this is not the only problem which is hampering
development. There are other problems such as loss of promoter
interest in projects, Banks copping with High NPAs are unwilling to
lend, low demand, environmental bottlenecks etc.
st

Lok Sabha TV Insights Iran Nuclear

Deal
BY INSIGHTS JULY 14, 2015

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Lok Sabha TV Insights Iran Nuclear Deal

Archives
14/7/2015
After a couple of years of exceptional diplomacy, Iran has finally
penned deal with G5+1. Iran agreed to bring down its centrifuges by
2/3 , to limit its enrichment at 3.67% and to limit stockpiles to 300
Kgs from current 10000 Kgs. Credit for this should undoubtedly go to
Iranian moderate leader Hasan Rouhani and US president Obama.
These leaders took pragmatically different course from their
predecessors who were bound towards an avoidable conflict.
rd

Iran in pre- Rouhani era was committed to develop nuclear bomb.

There was deep suspicion in Iranian regime that U.S. and allies are
conspiring for a regime change in Iran. These suspicions were not
completely unfounded. It was reported every now and then that U.S.
is financing NGOs in Iran for its interest. It is also alleged that US is
supporting Pakistan based Jundullah group. This, if true wont be a
big surprise if we go by history of U.S.

In 1953, government of democratically elected Iranian P.M.

(Mohammad Mosaddiq) was overthrown by covert operation
facilitated by American intelligence. In his place Shah Muhammad
Reza (shah) was installed. This was probably because former had
nationalized some British asset and U.S. was alarmed at possibility
of Mosaddiq regime going in USSR camp. Shah was an ardent ally of
US and US poured significant financial aid in Iran. This led to
infiltration US liberal cultural influence in Iran, which disturbed
conservatives to the core. Further, Shah turned out to be an
autocratic and indulgent ruler which alienated public. This led to
Islamic revolution in 1979, in which Shah Regime was finally
overthrown. This was replaced by a theocratic democracy, which has
been since then at loggerheads with entire west, Israel and Sunni
states.
Soon in 1980, Iraq attacked Iran as it feared its own large Shia
minority will be corrupted by new Shia state. This destructive War
went on till 1988. West chose not to interfere. Some day in 1988, US
navy shot down (later claiming by mistake) an Iranian plane killing
more than 200 citizens. In 1995 trade sanctions were imposed.
There were other similar incidents and repetitive sanctions which
eventually made Iranians committed for acquisition of Nuclear
weapons. Today Iran was very close to acquire nuclear weapons and
is already reported to possess a Long range ICBM.
It was very clear to Iran that west too was committed to not let Iran
go nuclear. Any such attempt would have violated Non Proliferation
Treaty of which Iran is member and this reason was enough for an
attack if backed by UN. Consequently, Iran chose to halt its nuclear
progress at least for time being. This deal will be in force for 15
years.
Iran in pre 1979 era was a major regional power. Its has 3 largest
oil reserves and its $ 200 billion worth of currency is lying blocked
rd

with various western banks owing to sanctions. Iranian economy will

give a thrust to world economy. This also leads to an unprecedented
geo political shift in Middle East. Bashar Al Assad regime of Syria
will get replenished support from new Iran. Shia terrorist group
Hezbollah too might acquire new muscle. It should be noted that
Iran, Syria and Libya were trusted allies among themselves. Latter
two have been in trouble due to Arab Spring. So Irans new
inclinations and priorities are yet to be known.
It is yet to be seen how US congress reacts to this deal. Most likely,
deal with get through the Congress. Strongest opposition comes
from the Republicans, among who is the influential arms lobby. This
lobby will most likely soften its stand against Iran in anticipation of
business. Even if they doesnt, President has right to exercise veto
over this decision. This will be politically risky, but given last major
initiative of Obama he may not hesitate to use it.

Lok Sabha TV Insights: Prime

Ministers Visit to Central Asia
BY INSIGHTS JULY 7, 2015

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Lok Sabha TV Insights PMs

visit of Central Asia
07/07/2015
Archives

Prime Minister yesterday left for Central Asian tour encompassing

6 countries i.e. Central Asia (Uzbekistan, Kazakhstan, Turkmenistan,
Kyrgyzstan and Tajikistan) and Russia. During this tour India will
touch upon wide array of issues such as culture, security, natural
resources and connectivity. Along with bilateral visits are the
multilateral summits of BRICS and SCO at Ufa in Russia.
India considers Central Asia as its extended neighborhood, but
geographical barriers makes them appear remote than any other
country of the world. India as we know has been blocked by Pakistan
and China. It depends solely on Iran for any connectivity. There have
been sustained negotiations from last few decades connectivity and
energy supplies, but so far India has not received even a meagre
return on Investment. Regions politics is extremely complex for
India. It needs a pragmatic and dynamic personality in seat to break
ice with Central Asian leader and thats what Indian PM will be
focusing on. In past, P.V. N. Rao, A.B. Vajpayee and M.M. Singh
visited central Asian countries, but it made little difference. It was
only J. Nehru who visited all 5 central countries in one visit in 1955
and he had exemplary understanding of culture of the region.

Till partition British India had regional (in turn cultural) contiguity
with Central Asia, but after about 70 years of minimal contacts, that
land appears alien. Central Asians on the other hand have strong
nostalgic feeling about India which they still refer to as Hind or

Hindustan. People to people contacts are minimal. These countries

are having very strict visa regimes so tourism is almost nonexistent.
India enjoys ample goodwill of Central Asians. But China with its
deep pockets and accessibility has left little space for India.
Economies of these countries almost wholly depend upon China and
Russia.
China has developed unique understanding with these nations under
which it extends loan meant for developing oil and gas sector of a
particular Central Asian country and in repayment of that loan China
is supplied Oil and Gas for decades. This is a win-win situation as it
provides market for Oil and gas exploration companies of China,
while it also takes care of its energy starved economy. On Indian
side TAPI project is being negotiated, but its success depends upon
Pakistans cooperation which is unlikely.
Connectivity for trade is another big problem. Current Imports from
Central Asia moves all the way to Xinjiang, then to Shanghai and
finally arrives at Mumbai, opposite route for exports. Currently trade
with Russia happens through St. Petersburg. Its absurd that trade
with our extended neighborhood takes longer time and costs than
that with any other region of the world. So, India is investing heavily
in Chabahar port of Iran which will be extended to Afghanistan
through Delaram- Zaranj highway. International North South
Transport Corridor (INSTC) is also being developed. This will be
multimodal (sea, road, rail) corridor Linking India (Mumbai), Iran,
Central Asia, Russia and Europe.
It should be noted that Indias connectivity with Central Asia
depends solely with Iran. Otherwise proactive current government
has so far not given any significant impetus to India- Iran relations. It
remains to be seen that what transpires after settlement of nuclear
deal with Iran.

Security angle to this visit is of utmost importance. New global

threat of ISIS has influenced Central Asia significantly as thousands
are participating in conflict on ISs side. Further, almost every threat
to Indian establishment in history has emerged from Central Asia.
Stability in Afghanistan is crucial for stability of world and depends
much upon Central Asia. This is even truer when Americans are
leaving and there is political immaturity and vacuum in Afghanistan.
If history tell us anything, it is that cultural and people to people
links are much decisive than financial links. India is poised to loose
dollar to dollar contention with China, but culturally people are
relatively close to India. It was seen in recent electoral outcomes in
Sri Lanka that people resent excess economic dependence on or
alignment with a powerful country like China. Public was suspicious
about Rajapaksa governments over reliance on China, so they
removed him through ballot. In contrast, if cultural links are
established, then government is bypassed and this is an
indestructible link.

Lok Sabha TV Insights : BRICS New

Development Bank and India
BY INSIGHTS JULY 8, 2015

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Lok Sabha TV Insights : BRICS New Development Bank and India

Archives
08/07/2015
New Development Bank formally inaugurated its business yesterday
as 7 BRICS summit was held in Ufa, Russia which was also attended
by Finance Minister. Initial collective investment in bank is $50
billion and a Contingency Reserve Fund is formed with $ 100
Billion. While investment in bank is equal by all member countries,
China is major contributor to CRF. Banks Headquarters are at
Shanghai and its first president (for 6 years) will be ex-ICICI Bank
chief K.V. Kamath.
th

It is significant development for world economy in the face of Greek

crisis. Banks main focus will be on member countries, yet it will be
accessible to other countries as well. Summit also offered some help
to Greece.
Bank seeks to cater to economic needs of its participants. Chinas
economy is in middle of transformation. With plummeting of global
demand it is seeking access to new economies. China is exports led
economy while India is domestic demand driven economy. Main
reason behind is that in China, savings are substantially more than
consumption, in India it is vice versa. In simple terms, money earned
by people competes for savings or consumption. If a country (its
people+ corporates & government) consumes more, than demand
will be more, while if it saves more, than there will be more
investment and hence more production of goods and services. As
Chinese save/invest/produce more they are in desperate search of
customers abroad. Indians, on the other hand, consumes more than
they save/invest/produce, as a result they have to Import the
excess, hence a market for the world.
This scenario fits perfect for New Development Bank. India is
starving for investments in Infrastructure and China is having

surplus investible FOREX reserves, which are more than $ 3500

Billion. India is a credible and reputed borrower and NDB will get
reasonable returns. Borrowing this money directly from china, might
have subverted some security considerations. But now it is
channeled through a multilateral Institution, of which India is an
important member and also with an Indian president.
However, Infrastructure in India is not marred just because of lack of
investment. Lack of land availability is bigger problem. Recent
development model relies excessively on Public Private Partnership,
which needs to fulfil stringent conditions mandated by new land
acquisition act. Passage of ordinance in Lok Sabha is crucial for
removal of this hurdle. Because of lack of infra there is significant
inter regional disparity in India. For instance, exports from Punjab
costs at least 6% more than those from coastal states. Apart from
Infra, bureaucratic red tape and environment licence raj are equally
responsible. In case of non-addressing of these issues investment
will not help, rather it will put additional interest cost burden without
any returns. However, there are some indications of improvements
across the sectors.
In some international circles, particularly western, BRICs bank is
being seen as a challenge to Bretton wood Institutions. So far, these
concerns appear to be misplaced. This bank seeks to just
supplement what they are already doing, albeit with more
transparency and participation. Its strange that champions of free
market are scoffing at competition. Nevertheless, formation and
performance of NDB will compel them to think about reforms in
these institutions.
Contingency Reserve Fund which holds $ 100 b will act as buffer for
member economies in times of international or domestic distress.
Chinas contribution is $ 41b, South Africas is $5 b, other three
countries contribute balance $ 54 equally. Violent instability in

international economy since 2008 crisis has made developing

economies much vulnerable. International funds are moving back
and forth in economies on short term basis. As a result almost all
currencies have touched new highs and lows during this short time.
Programs like US quantitative easing and contraction are responsible
for this, equally responsible are the fluctuation in policy/bank rates
in the west. If in a short time India suffers huge outflow from its
FOREX reserve (though we have more than sufficient now), so that it
is not able to fulfil its payment obligation under current account
(excess imports over exports), she will have to approach IMF. This
outflow if any will also result in crash of rupee, making things worse.
So, CRF hedges member countries against such risks.
Besides this, many in India are wary of relying excessively on China,
because of its opaqueness. But there seems to be more
complementarity than threat as has already been explained. Threat,
if any, is to China on long term basis. India is just taking initial steps
to improve its manufacturing sector. In case things go well, in few
decades Indian products will start giving stiff competition to Chinas.
It may be a repeat of US- China story. However, this is a natural
transition. As Chinas per capita income moves to higher trajectory
many businesses will be shut there and move to low cost
economies. Also, more economic engagement results into entangled
strategic and security interests, which results in global stability and
prosperity.

Lok Sabha TV Insights: Reforming

Irrigation in India (Very Important for
Mains Paper 3)
BY INSIGHTS JULY 3, 2015

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Lok Sabha TV Insights: Reforming Irrigation in India

03 July 2015
Archives
Government recently launched Pradhan Mantri Krishi Sinchayee
Yojna with proposed investment of Rs 50000 crores spread over
next five years. Current year allocation is Rs 5300 crores aimed at
irrigating 6 lakhs additional hectares. It holistically aims to bring all
the existing schemes under it and put a 3 level strict monitoring
mechanism viz. District, State, and National levels. In past deficit
monitoring mechanisms have been biggest loophole in various
schemes. It further promises to extend irrigation to every village in
India. Currently irrigation is limited to just 40% of the total cultivated
land. As always, here too implementation is the key challenge.
This time there is greater vertical (center, state and districts) and
horizontal (ministry of water, ministry of irrigation, ministry of rural
development) cooperation which will ensure fast track
implementation. District committee will be responsible for planning
and implementation; it will be supervised by State Monitoring
committee headed by Chief Secretary and there will be a National
Executive Committee under the Chairmanship of the ViceChairman, NITI Aayog, to oversee issues such as programme
implementation, allocation of resources, inter-ministerial
coordination, monitoring and performance assessment, and
administrative issues.

Further, the programme will be supervised and monitored at the

national level by an Inter-Ministerial National Steering
Committee, chaired by the Prime Minister. To states, 75%
assistance will be provided by center and its 90% in case of north
east states.
India has got numerous perennial and seasonal rivers, and more
than 110 cm of average annual rainfall. So, as such we have plenty
of water available, but problem is skewed availability across
different geographical divides. On one hand there are severely water
deficit regions like parts of Rajasthan, Saurashtra, Vidarbha,
Rayalseema etc. that bear brunt of annual draught, while on the
other side there are regions like eastern India and western Ghats
(windward) that are among wettest regions in the world. Key
challenge is to engineer inter basin water transfer. There are some
success stories at regional basis under which water is transferred
from one basin to another. For eg.
1.

Indira Gandhi canal Transfer of water from Indus basin to

deserts of Rajasthan
2. Periyar project Transfer of water from Periyar basin to Vaigai
basin
3. Kurnool Cudappah Canal Transfer of water from Krishna
basin to Pennar basin
Similar projects can be replicated elsewhere like in Bihar where
monsoon brings devastating floods annually. Earlier there were talks
of ambitions projects like Ganga Cauvery Link Canal and Garland
canal. These aimed at creating massive transfer systems at pan
India level, something line National Water Grid under which water
could be moved to and at chosen places and times. But these were
neither affordable nor practical. So, only option is region based
water transfer.
First target will possibly be mapping of water bodies throughout
India. We have 85 large reservoirs with capacity of about 253 billion

cubic meters of water. Other important assets are the ancient ponds
in villages. All these can be mapped along with relief of land through
satellite imaging or geo tagging, which can provide useful inputs for
rain water harvesting and watershed development. This will help
arresting water runoff which inhibits recharge of groundwater
acquafiers. Swaminathan committee suggested promoting the farm
ponds as are prevalent in south India. These are small ponds held
commonly by 2-3 farmers.
For this entire work, scheme will also utilize labor available under
MNREGA scheme. This will pacify critics of MNREGA, who argue that
the scheme doesnt build and useful durable asset.
Further, integral part of the scheme will be awareness for the
farmer. This will make sure that only suitable crops are planted. For
e.g. Sugar cane or paddy is not sowed in areas with water problem.
For this states with help of districts will draw a District Irrigation
Plan and a State irrigation Plan.
Government will have to provide subsidized irrigation equipments
such as sprinklers and drip irrigation systems. Farmers are in habit
of waterlogging the crops, even when they need just moisture in the
soil. Due to this attitude wastage is rampant. Success of this
ambitious program doesnt only depend upon seriousness of the
central government, but also ambitions of and participation by the
state and local governments and by farmers themselves. Currently,
because of disproportionately large availability of water in North
West India, about 80% subsidy provided on water and fertilizer is
cornered by rich commercial farmers. Irrigation to all is first and
foremost step which will ensure correction of this distortion.

Lok Sabha TV Insights:

Transformation by Digital India & A
Detailed Article on Digital India
Program
BY INSIGHTS JULY 2, 2015

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Lok Sabha T V Insights Transformation by Digital India

02/07/2015
Prime Minister started campaign of Digital India Week yesterday to attract various stakeholders
to ensure the success of initiative. This ambitious initiative aims to transform India to a true
Knowledge Economy, where not only government services are provided through ICT, but all
aspects of life, be it business, agriculture or education are facilitated likewise. India, given its
huge human resources in IT sector is well suited to achieve such change.
It will have multiplier effect of economy of the country. In one go this will ensure transparent
and accountable government, ease of business, hassle free procedures, higher living standard of
masses and reduce in wastages in public spending. Positive impacts of digitization are quite
apparent in current E-ticketing system of IRCTC, E- filling of income tax returns, E- Passport
services, Digitization of land records among many examples. In all these initiatives power of
middle man and discretion of lower level bureaucracy has decreased significantly.
Unlike predecessor National E-Governance Plan (NEGP), Digital India initiative looks much
beyond public service delivery system. It places equal stress on digital infrastructure,
governance and service delivery and digital empowerment of citizens. Without such

comprehensive plan NEGP had very little relevance in rural and backward areas.
As always implementation is the key, but this program is starved of Infrastructure. There are
two different options for delivery, one is through spectrum wavelength i.e. through mobile data
and other is through landline broadband for which National Optical Fiber Network is being
laid. In case of former efficient delivery of service demands national wide roll out of 4G and plus
services and in case of latter, current speed of work is dismal at 500 km/month while it should
be 30000 km/ month.
Another issue is legal framework of the country. Current legal framework seems obsolete as
Cyber Security law is 15 years old and is incapable of dealing with modern technicalities and
crimes. Similarly, IT act of 2000 doesnt even cover many types of crime. In absence of holistic
legal framework, this initiative can get marred under obstructive litigation. National Cyber
security policy was framed in 2013, but it is now a dead letter. However, in telecom sector both
regulatory (TRAI) and appellate body are in place which can well take care of infrastructural
part of the plan.
To ensure success, it is essential that masses participate in this initiative. Relevant applications
with suitable content in local languages will have to be developed to educate diverse people of
the country. So far awareness about technology is quite low in country side. This results in
exclusion of poor from the services.
This initiative also aims hardware development in India and tries to draw synergies from Make
in India initiative. Currently China holds about 40% share in electronics market. Wages and
other costs in China are expected to inflate significantly in coming years and this provides India
an opportunity to dislodge China from top position. For this to happen, along with massive skill
development, India will have to correct its inverted duty structure. Indias imposes heavy excise
duty on domestic manufacturing of various electronic components, whereas China provides
heavy subsidies or low taxes. This along with low import duty mandated by WTO agreement
makes imports cheaper than domestic manufacturing. This is called inverted duty structure and
it has retarded Indian industry.

Having said this, data security is of utmost importance. Humungous amount of private and
sensitive government data will flow on digital highways. Any leakage or attack on such data can
jeopardize national security and disrupt the lifeline. Apart from security, systems should be put
in place to ensure that individual privacy is respected. There is a widespread suspicion
throughout the world over digitization. It is felt that governments and big business houses are in
position to mi-utilize Big Data technique for their private ends. These suspicions will have to be
properly addressed before spending huge funds on the program. Russian laws doesnt allow
domestic data to be stored beyond its boundaries, this should be looked into by India.

What is Digital India?

Digital India is a Programme to prepare India for a knowledge future. The focus is on being
transformative to realize IT + IT = IT. The focus is on making technology central to enabling
change. It is an Umbrella Programme covering many departments. It weaves together a large
number of ideas and thoughts into a single, comprehensive vision so that each of them is seen as
part of a larger goal.
Each individual element stands on its own. But is also part of the larger picture. It is coordinated
by DeitY , implemented by the entire government. The weaving together makes the Mission
transformative in totality
The Programme: Pulls together many existing schemes. These schemes will be restructured and
re-focused. They will be implemented in a synchronized manner. Many elements are only
process improvements with minimal cost. The common branding of programmes as Digital
India highlights their transformative impact.
Vision of Digital India
Centered on 3 Key Areas

 Digital Infrastructure as a Utility to Every Citizen

Governance & Services on Demand
Digital Empowerment of Citizens
Vision Area 1: Infrastructure as a Utility to Every Citizen
High speed internet as a core utility
Cradle to grave digital identity -unique, lifelong, online, authenticable
Mobile phone & Bank account enabling participation in digital & financial space
Easy access to a Common Service Centre
Shareable private space on a public cloud
Safe and secure Cyber-space
Vision Area 2
Seamlessly integrated across departments or jurisdictions
Services available in real time from online &mobile platform
All citizen entitlements to be available on the cloud
Services digitally transformed for improving Ease of Doing Business
Making financial transactions electronic & cashless

 Leveraging GIS for decision support systems & development

Vision Area 3
Universal Digital Literacy
Universally accessible digital resources
All documents/ certificates to be available on cloud
Availability of digital resources / services in Indian languages
Collaborative digital platforms for participative governance
Portability of all entitlements through cloud

Nine Pillars of Digital India

1.

Broadband Highways

Broadband for All Rural

Coverage: 250,000 GP
Timeline: December 2016
CAPEX: Rs 32,000 Cr
Nodal Dept: DoT
1yr: 50,000 GP

2yr: 100,000 GP
3yr: 100,000 GP
Broadband for all Urban
Virtual Network Operators for service delivery.
Mandate communication infrastructure in new urban development and buildings.
Needs changes in rules to facilitate
National Information Infrastructure
Coverage: Nationwide
Timeline: March 2017
Cost: Rs 15,686 Cr
Nodal Dept: DeitY
Integration of SWAN, NKN, NOFN. To be implemented in 2 years

1.

Universal Access to Phones

Coverage: Remaining uncovered villages (~42,300 villages)
Timeline: FY 2014-18
Cost: Rs 16,000 Cr

 Nodal Dept: DoT

Ongoing Programme Increased network penetration & coverage of gaps

2.

Public Internet Access Programme National Rural Internet Mission

CSCs made viable, multifunctional end-points for service delivery

Coverage: 2,50,000 villages (now 130,000)
Timeline: 3 Years March 2017
Cost: Rs 4750 Cr
Nodal Agency: DeitY
Ongoing Programme Reach of Govt. services to all GPs
Post Offices to become Multi-Service Centres
Coverage: 1,50,000 Post Offices
Timeline: 2 Years
Nodal Agency: D/o Posts
This is long term vision of POs

1.

E-Governance Reforming government through Technology

Government Business Process Re-engineering using IT to improve

transactions
Form Simplification, reduction
Online applications and tracking, Interface between departments
Use of online repositories e.g. school certificates, voter ID cards, etc.
Integration of services and platforms UIDAI, Payment Gateway, Mobile Platform, EDI
Electronic Databases all databases and information to be electronic, not manual
Workflow automation inside government
Public Grievance Redressal using IT to automate, respond, analyze data to identify and
resolve persistent problems largely process improvements
To be implemented across government critical for transformation.

1.

eKranti Electronic delivery of services

Technology for Education e-Education

All Schools connected with broadband
Free Wi-Fi in all schools (250,000)
Digital Literacy program
MOOCs develop pilot Massive Online Open Courses

Technology for Health e-Healthcare

Online medical consultation
Online medical records
Online medicine supply
Pan-India exchange for patient information
Pilots 2015; Full coverage in 3 years
Technology for Planning
GIS based decision making
National GIS Mission Mode Project
Technology for Farmers
Real time price information
Online ordering of inputs
Online cash, loan, relief payment with mobile
banking
Technology for Security
Mobile Emergency Services

Technology for Financial Inclusion

Mobile Banking
Micro-ATM program
CSCs/ Post Offices
Technology for Justice
E-Courts, e-Police, e- Jails, e-Prosecution

Technology for Security

National Cyber Security Co-ordination Center
Ongoing Programme (NeGP) will be revamped to cover these elements

1.

Information for All

2.

Online Hosting of Information & documents

3.

Citizens have open, easy access to information

4.

Open data platform

5.

Government pro-actively engages through social media and web based platforms to
inform citizens

MyGov.in

 2-way communication between citizens and government

1.

Online messaging to citizens on special occasions/programs

2.

Largely utilise existing infrastructure limited additional resources needed

7. Electronics Manufacturing Target NET ZERO Imports

Target NET ZERO Imports is a striking demonstration of intent

Ambitious goal which requires coordinated action on many fronts

Taxation, Incentives

Economies of Scale, Eliminate cost disadvantages

Focused areas Big Ticket Items FABS, Fab-less design, Set top boxes, VSATs,
Mobiles, Consumer & Medical Electronics, Smart Energy meters, Smart cards, micro-ATMs

Incubators, clusters

Skill development

Government procurement

There are many ongoing programs which will be fine-tuned.

Existing Structures inadequate to handle this goal. Need strengthening.

8. IT for Jobs
Train people in smaller towns & villages for IT sector jobs

 Coverage: 1 Crore students

Timeline: 5 years
Cost: Rs 200 Cr for weaker sections
Nodal Agency: DeitY
New Scheme IT ready workforce
IT/ITES in NE
Scope: Setting up of BPO per NE State
Coverage: NE States
Nodal Agency: DeitY
ICT enabled growth in NE
Train Service Delivery Agents to run viable businesses delivering IT
services
Coverage: 3,00,000
Timeline: 2 Years
Nodal Agency: DeitY
Ongoing Skilled VLEs and Viable CSCs

Telecom service providers to train rural workforce to cater to their own

needs
Coverage: 5,00,000
Timeline: 5 Years
Nodal Agency: DoT
Telecom ready workforce
IT platform for messages
Coverage: Elected representatives, All Govt employees
1.36 Cr mobiles and 22 Lakh emails
Mass Messaging Application developed
Targeted Mass messaging since July 14
Government Greetings to be e-Greetings
Basket of e-Greetings templates available
Crowd sourcing of e-Greetings thru MyGov
E-Greetings Portal ready by 14 August 2014
1 e-Greeting from PM on 15 Aug 2014
st

Biometric attendance

th

 Coverage: All Central Govt. Offices in Delhi

Operational in DeitY & Initiated in Urban Development
On-boarding started in other depts
Procurement of devices tender issued
To be completed by Oct 2014
Wi-Fi in All Universities
Scope: All universities on NKN
400 additional Universities
Cost: Rs 790 Cr
Approval Oct 2014 Implementation done by Dec 2015

Secure email within government

Phase I upgradation for 10 Lakh employees done
Phase II for 50 Lakh employees by March 2015
Cost: Rs 98 Cr
Email to be primary mode of communication

Standardize government E-mail design

Standardized templates under preparation
To be ready by October 2014
9. Early harvest Programmes
Public Wi-Fi hotspots
Coverage: Cities with pop > 1 Mill., tourist centres
Nodal Agency: DoT / MoUD
Digital Cities Completed by Dec 2015

School Books to be eBooks

Nodal Agency: MHRD/ DeitY
Completed by Mar 2015
SMS based weather information, disaster alerts
DeitYs Mobile Seva Platform ready
Nodal Agency: MoES (IMD) / MHA (NDMA)
In place by Dec 2014
National Portal for Lost & Found children

 Nodal Agency: DeitY/ DoWCD

In place by Oct 2014

Institutional mechanism
The program management structure for Digital India consists of a Monitoring Committee on
Digital India headed by Prime Minister, a Digital India Advisory chaired by the Minister of
Communication and IT and an Apex committee chaired by Cabinet Secretary.

The central Minster/department and state government concerned would have the overall
responsibility for implementation of various Mission and other projects under the Digital India
program.

Lok Sabha TV Insights Monsoon

Impact on Economy
BY INSIGHTS JULY 1, 2015

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Lok Sabha TV Insights Monsoon Impact on Economy

Archives
1 July 2015
Proving apprehensions of deficit rainfall false, monsoon in June
showered 16% surplus rainfalls in well distributed manner. Only few
areas (north east, Bihar, Kerala and T.N.) received deficit rainfalls.
About 20% of total showers expected during the season, are
received in June. However, IMD forecast for the months of July and
August is pessimistic at 88% of normal rainfall. Overall performance
of sector will emerge clearly only after a few months. Given that El
Nino is prevalent this year, government already framed a crisis
management plan for drought for 2015.
Last year we witnessed drought in many places, which pushed
agriculture growth down to meagre .2%. Previous few years
registered robust growth of 4% plus on the back of good monsoons.

Erratic rainfalls earlier this year devastated vast quantities of rabi

crops bringing millions of farmers under distress. So, good monsoon
is very crucial to prevent further deterioration. Good monsoon
contributes to healthy growth in national GDP and this growth is
much more inclusive than growth in Industry and services.
Crop sowing so far this year has dropped for rice, maize and millets
in comparison to last year. In case of cash crops, Jute, sugarcane
and cotton has witnessed the decline. For pulses and oil seeds,
sowing is marginally up.
In anticipation of bad monsoon and spiraling prices of few
commodities government has imported pulses and other essential
goods to maintain the buffer stocks. We have sufficient stocks of
Rice (20 Million tons) and wheat (40 MT), and these are expected to
increase by current years surplus. That said, India doesnt produce
sufficient pulses and edible oils. We import about 20% of
requirement. Recent crunch in supply of pulses resulted in 30%
increase in prices. Main reason behind this is lower MSPs in
comparison to food grains, Low productivity and technology
resistance nature of pulses. Recently government increase MSP of
pulses significantly, but this is only a partial solution. Pulses yield
merely 700-1000 kgs per hectare and this is almost stable from pre
green revolution period. In contrast, food grains despite being in
similar state few decades ago now yield 2500-3000 kg. Per hectare.
Accelerated Pulsed Production Program (A3P) is in place to promote
better farming, but so far there is limited success. In Canada,
Australia and USA productivity is almost 2-3 times that of India.
Similarly, edible oils are being imported from South East Asia even
when we have ample potential.
India is net exporter of agriculture and monsoon in India is observed
closely by whole world. Even some developing countries such as
Brazil and ASEAN have as low as 3-4% population engaged in

agriculture, so unlike India (which stocks physical grains) these

countries are dependent on imports for food security in times of
distress. Further, in case of natural calamities like recent Nepal EQ
and floods in Pakistan last year, India is main provider of food grains.
This is an opportunity given that every 1% increase in agri exports,
brings Rs 8500 crore of revenues to India. But for this agriculture
sector needs to be infused with new technologies and practices.
Financing and Technology are key determinants in future of this
sector. Farmer needs money for all the Inputs viz, seeds, fertilizer,
electricity, technology and also for post harvesting period so that he
can hold the crop till it fetches good price. Despite numerous steps
taken under aegis of NABARD small farmer is as vulnerable as ever.
Recent decline in value of Rupee against dollar is worrying trend
especially in case of deficit monsoon. In that case first recourse of
government will be to import to the extent of the shortfall of food
stuff. Expensive dollar will pull up prices of imports and in turn food
inflation in the country. Decline in Rupee, though is more
attributable to international worries about possible Greeks from
European Union. But thankfully, India currently holds highest ever
Forex reserves at more than 350 billion $s.
In past we have seen Government in spite of putting adequate
contingency plan in place generally failed at delivery. This time it
should work proactively and deliver good quality seeds in vulnerable
villages. It should also chart out an Income Insurance scheme for
farmers. This along with long term commitment of making
agriculture monsoon proof will bring prosperity in our countryside.

The Big Picture Todays India and

Lessons from Emergency
BY INSIGHTS JUNE 29, 2015

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The Big Picture Todays India and Lessons from Emergency

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Summary:
40 years ago to the day, what is considered as the biggest blot on
Indian democracy was imposed on the people. The internal
emergency which was proclaimed by then congress government
including suspension of fundamental rights is considered one of the
most traumatic periods for the fledgling democracy. This time period
is also seen as the coming of the age of the Indian democracy. But,
later the Indian parliament passed amendments to the constitution,
the 44 amendment, to ensure that the future governments will not
find it easy to impose another emergency in the country. However,
some senior experts and politicians have observed recently, Have
we as a nation done enough since then to ensure that institutions
have been strengthened to withstand such an assault on the
freedom of the people.
th

The emergency lasted for twenty one month. It began in June 1975,
suspending civil liberties and allowed the government to rule by
decree. After the emergency, when elections were called in March
1977, Mrs Indira Gandhi and her Congress party were roundly
defeated by the alliance formed to oppose her Emergency, having
emerged earlier during the political unrest that had prompted it.
1975 Emergency was a watershed in the history of independent

India that sought to totally repudiate democratic rule for the first
time. It reminded of the many dictatorships of the developing world
in Africa, Asia and Latin America.
The emergency also gave the beginning of the end of dominance by
a single political party at the centre in India that had begun eroding
a decade earlier. Indias voters subsequently rejected congress party
led by Mrs Indira Gandhi, showing a mature appetite for the rule of
law and public accountability that their poverty and educational
backwardness might not have led one to expect. National politics in
India over the next forty years decisively established the dominance
of regional parties and caste as a mobilising force.
The Emergency propelled several political leaders long in political
wilderness straight into office, and introduced the idea of an
opposition leader in the ruling structure. The Leader of the
Opposition (through The Salary and Allowances of Leaders of
Opposition in Parliament Act, 1977) emerged from the first nonCongress government that followed the first election after the
Emergency. Thus, several leaders who harvested a political fortune
opposing the Emergency quickly warmed to the possibility of
privileging personal political power over party organisation. An
enduring lesson Indias political classes imbibed silently was on the
importance of keeping control over state media and the retention of
the Emergency clause in the Constitution.
It is also important to remember that the Emergency doesnt need
to come back in its older avatar any more. It can achieve much more
sinister results by breaking up into a thousand parts and unwittingly
chip away at our rights.

The Big Picture Railways: Whats the

right track?
BY INSIGHTS JUNE 18, 2015

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The Big Picture Railways: Whats the right track?

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Summary:
Railways has been crying out for help for decades. Despite the huge
allocation of funds that it gets each year, the lefeline of India
continues to suffer. However, now a governemt panel, setup to
study the restructuring of railways, has set a five year roadmap to
bring in new reforms. An official committee, headed by NITI Aayog
member Bibek Debroy, has recommended a whole set of reforms,
including entry of private players into the Railways, and separation
of offline activities from the core business. The committees report
on restructuring has come at a time when the Railway Minister has
made a pitch for giving more powers to the railway protection force
for better policing of rail premises, seeking consent of all states to
amend the RPF Act, 1957, so its personnel could lodge FIRs for
crimes committed at stations and on trains. The power is currently
vested with the Government Railway Police (GRP), controlled by
states.
Important recommendations made by the committee:

Separation of activities like running of hospitals, schools,

catering, real estate development, manufacturing of locomotives,
coaches and wagons from the core business of running trains.

State governments should be asked to entirely fund the

Government Railway Police (GRP) and the general managers

should have the freedom to choose between private security

guards and RPF for security on trains.

Establishment of an independent regulator Railway

Regulatory Authority of India. The Regulator will work under the
policy framed by the Ministry, while the present Railway Board
will become a board of Indian Railways the government-run
operator alone. The Regulator can recommend fare revisions
but these will not be binding on the Railway Ministry leaving
scope, presumably, for the political dispensation of the day to
take a call.

Scrap the Rail Budget and make room for more players in an
open access regime.

Create a Railway Ministry with at least three Secretary-level

officers to lay down policy for the rail sector.
On medical service undertaken by the Railway, the committee has
recommended a multi-pronged approach. It has said for functions
such as periodic medical examination, pre-employment
examination, medical boards, safe water and food supply at
stations, the GMs and DRMs as also the employees could be given
the choice to opt for services either through Indian Railway Medical
Service or through private empanelled practitioners.
Reacting to Debroy panels report, the National Federation of Indian
Railways has said it has totally failed in understanding the
complexities of the Indian Railways working system. The
recommendation to separate production units, hospitals, medical
services, schools and RPF from the main activity of running trains is
totally wrong as these supporting activities strengthen the Indian
Railway in providing services to the customers. The Railways is
categorised into 16 geographical zones, employing about 1.3 million
people with a cadre-based department like mechanical, engineering
and electrical.

Some experts say that it is not desirable to experiment with FDI and
private players in infrastructure without building massive railway
infrastructure first. They say that political compulsions and
commitments are responsible for slowing down of the railway
network and train speeds and not the railway workforce. Currently,
Railways works on a top-down hierarchical model with a six-member
Railway Board which implements and monitors policies and takes all
key decisions. Trade unions fear any effort at bringing in private
players into railway operations would jeopardise the workers jobs
and negatively impact railways financial health.
The Economic Survey had noted that a Re1 increase in railway
output increases the output in the economy by Rs3.3. This huge
multiplier effect demonstrates the impact that Indian Railways has
on both the industry and private citizens. Several committees have
proposed an array of railway reforms in the past three decades. But
till date, no government has shown the institutional will to introduce
structural changes in a system that was allowed to grow unwieldy
and too big to fail

Indias World The Rohingya Refugee

Crisis
BY INSIGHTS JUNE 16, 2015

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Indias World The Rohingya Refugee Crisis

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Summary:
The plight of the Rohingyas from Myanmar and Bangladesh is being
described as Asias biggest mass exodus. The Rohingyas are
minority Muslim community in the predominantly Buddhist Myanmar
and they reside in Rakhine province of that country. After the major
Buddhist-Rohingya riots in 2012 a large number of Rohingyas fled to
the neighboring Bangladesh. Thousands who remained back became
internally displaced and their properties were displaced and were
chased out of their homes. They now live in crowded camps within
Myanmar. Periodically they try and escape the inhuman conditions
they are forced to live in and are facilitated by people smugglers. As
in the past they have sought greener pastures in Malaysia, Thailand
and Indonesia. None of the countries want them now. Rohingyas are
collectively dubbed as boat people by the media.
The Rohingya people are considered stateless entities, as the
Myanmar government has been refusing to recognise them as one
of the ethnic groups of the country. There is no legal protection for
them from the government of Myanmar. To escape the dire situation
in Myanmar, the Rohingya try to illegally enter Southeast Asian
states, begging for humanitarian support from potential host
countries. The modern Burmese state is built upon the concept of
Buddhist Burmese supremacy; this concept has been used by the
military as a pretext for their rule. The Rohingya are not allowed to
register their marriage and they are not allowed to have education.
Their condition is even when they travel to other countries. When
the refugees arrive in Thailand and Malaysia, they are still at the
mercy of traffickers, who detain them in jungle prisons and demand
ransoms from friends and family. If they can pay, they are released,
but if they cannot they are often killed. Thailand police discovered
24 bodies in the mountains of southern Thailand in May, believed to
be the victims of smugglers. Most refugees that arrive in Thailand or

Malaysia look to stay and get work and then send money home to
their families. The refugees work in the fishing or farming industries
and often dont get paid or face dire working conditions. Those that
have made out of Myanmar by boat face an uncertain future.
Malaysia is not a signatory to the 1951 Refugee Convention and
does not possess a legislative and administrative framework to
address refugee matters. Therefore, the inclusion of more Rohingya
refugees would have further strained Malaysias domestic capacity
to cope with illegal immigrants in the country.
Malaysia and Indonesia have agreed to provide temporary shelter
for the refugees in their respective countries for up to a year, after
which the international community should assist to repatriate and
resettle the refugee to a third country. The Rohingya refugee crisis
also poses domestic challenges for Malaysia. The growing presence
of Rohingya refugees could worsen the social, economic and political
problems associated with illegal immigrants in Malaysia.
Atrocities committed against Rohingya Muslims in Rakhine state is
being seen as a crime against humanity. Malaysia, Indonesia and
Thailand had recently sparked growing international outrage by
driving off boats overloaded with starving Rohingya as well as
Bangladeshis. The UNs refugee agency, the UNHCR, believes at
least 2,000 migrants may be stranded on boats off the MyanmarBangladesh coasts, held in horrific conditions for weeks by
traffickers who are demanding that passengers pay to be released.
The UN says the Rohingya are one of the most persecuted groups in
the world. Neither Bangladesh nor Myanmar recognises them as
citizens. In Buddhist-majority Myanmar, even the name Rohingya is
taboo. Myanmar officials refer to the group as Bengalis and insist
they are illegal immigrants from Bangladesh, even though most
have lived in the country for generations.

Whatever be the solution, it really has to be a humanitarian

approach, making sure lives are not lost and looking at temporary
solutions in each of the affected countries Malaysia, Thailand and
Indonesia. The United States has asked the Myanmar to give full
rights to the minority to help end the exodus. The temporary
solution is a settlement arrangement for the asylum seekers and
refugees who are coming to these countries. There has to be a
mechanism and strategy at the regional level that allows countries
of the ASEAn region to have an oversight on coordinated
management. The approach might be slightly different in every
country, but it has to be an overarching strategy. ASEAN has to put
pressure on Burma in order to make changes to the lives of people
in Rakhine state. This is a long-term strategy.