Sie sind auf Seite 1von 182

Civil Services News is a unique initiative to help the aspiring

civil services candidates in preparation for General Studies. One


of the biggest challenges faced by the students preparing for
Civil Services is making Current Affairs notes. Reading
newspapers and magazines is meaningful only if a student
makes concise notes which he or she can revise a few weeks
before the mains exam. Newspaper reading also needs to be
supplemented with background research from the internet
which takes up significant amount of time.
In a historic visit of the President of United States to India, the
nuclear logjam was broken. If UPSC asks a question on this
topic, it is highly probable that a candidate would be expected to
write about the background of the Indo-US nuclear deal. So,
reading newspapers alone is not sufficient to tackle the dynamic
nature of questions which are being asked in the civil services
exam nowadays. This is precisely where Civil Services News
would help the students by giving them notes compiled from
scores of newspapers, magazines and online sources augmented
with relevant background of every important topic.
Civil Services News would be published in the first week of every
month. It will have in-depth analysis of all major national and
international news. It will cover news related to National issues,
Foreign Affairs, Economy, Environment, Science & Technology,
Government Schemes and Policies, Court Judgments etc. Along
with these, a few special topics would be covered every month
which the students find difficult to prepare as they are not
adequately dealt with in the books usually studied by the
aspirants. This months special focus topics are Illicit drug trade
in India and Indian intervention in Sri Lankan civil war.
Please share your feedback with us so that we can make the
magazine as student friendly as possible. We intend to keep the
magazine free. Spread the word about the magazine and share it
with as many people as you can.
Editor

Mandeep Mittal
B. Tech, M. Tech IIT Delhi
9891403625
mandeep.iitd@gmail.com

Contents
National News
Highlights of Barack Obamas visit to India .................................................................................................... 5
Indo-US Nuclear Deal ............................................................................................................................ 16
Indo US Nuclear Logjam ..................................................................................................................... 20
Health as a Fundamental Right................................................................................................................. 22
Governments move to block 32 websites draws flak ........................................................................................ 25
NITI Ayog .......................................................................................................................................... 25
Consumer Protection Act in shambles ......................................................................................................... 31
Amendments to Land Acquisition Act ......................................................................................................... 33
Section 66A of the IT Act ........................................................................................................................ 35
Indias preparedness to fight Ebola ............................................................................................................ 36
Government freezes accounts of international NGOs ....................................................................................... 39
Bifurcating top post in PSBs expected to bring in transparency ........................................................................... 41
Xaxa Committee Report ......................................................................................................................... 41
Net Neutrality .....................................................................................................................................44
Jamsetji Nusserwanji Tatas 175th birth anniversary ....................................................................................... 45
Vibrant Gujarat Summit .........................................................................................................................46
Sterilization Deaths ............................................................................................................................... 47
Educational qualification for contesting local body elections ..............................................................................48
Voting rights for NRIs ............................................................................................................................48
MMDR Amendment Ordinance, 2015 .........................................................................................................49
Armed Forces facing a fund shortage ..........................................................................................................50
Rise of the Lone Wolf ............................................................................................................................ 52
Operation Chakravyuh ........................................................................................................................... 55
Freedom of speech and expression ............................................................................................................. 57
Chief and members of CBFC resign alleging interference .................................................................................. 58
Katchatheevu ..................................................................................................................................... 60
MHRD directive to institutions over MoUs ................................................................................................... 61
Decontrol of Urea ................................................................................................................................. 62
Tejas ................................................................................................................................................64
Annual Status of Education Report ............................................................................................................64
SC lays down rules for BCCI elections ......................................................................................................... 65
Centre set to unveil housing for all plan ....................................................................................................... 67
Women in Indian army ..........................................................................................................................68

January 2015

Page 1

Integrated coastal zone management .......................................................................................................... 70


Dolphin Survey .................................................................................................................................... 72

International News
Peshawar attacks and Indias potential role in maintaining peace in Af-Pak border areas............................................ 73
Nepal to join Silk Road initiative ............................................................................................................... 75
Growing Opium production in Myanmar ..................................................................................................... 78
Terror attack on Paris magazine kills 12 ...................................................................................................... 79
Sri Linka elects new president ................................................................................................................. 80
Thaw in relations between US and Cuba ...................................................................................................... 81
Military courts to be established in Pakistan .................................................................................................83
UNFCC Conference 2014 ........................................................................................................................84
Findings of a study on inequalities in distribution of wealth conducted by Oxfam .....................................................86
Israel-Palestine conflict comes under ICCs watch ..........................................................................................86
Quantitative Easing in Europe ................................................................................................................. 90
Pakistani Taliban ................................................................................................................................. 92
India-Russia summit 2014 ......................................................................................................................96
Reservations in Education and Employment .................................................................................................98
Assam Violence.................................................................................................................................. 101
Iterview with Shubhankar Dam .............................................................................................................. 105
Skill Gaps in the Indian Labour Market ..................................................................................................... 108

Special Focus Topics


Illicit Drug Trade in India ..................................................................................................................... 109
Sri Lankan civil war and Indian intervention ............................................................................................... 117

Press Information Bureau


Bezbaruah Committee ......................................................................................................................... 123
Rating of ITIs .................................................................................................................................... 124
Year End Review for the Department of School Education and Literacy, Ministry of Human Resource Development ........ 124
Speech of Sushma Swaraj at Youth Pravasi Bharatiya Divas .......................................................................... 126
Ordinance to amend Citizenship Act promulgated ........................................................................................ 128
Government Assures PSBs, Financial Institutions (FIS) of Non-Interference ........................................................ 129
Interests of workers in organized and unorganized sectors .............................................................................. 130
Achievements of Ministry of Overseas Indian Affairs during 2014-15 ................................................................... 131
President of India Congratulates DRDO on the Successful Test-Firing of Agni-V .................................................... 134

January 2015

Page 2

More Autonomy to be Given in Decision Making to DPSUs and OFBs for Better Performance .................................... 134
Strategic partnerships is a big step to scale skilling initiatives in India: Shri Rajiv Pratap Rudy .................................. 135
Smart cities are all about 4 S and 4 P...................................................................................................... 136
PM's remarks at India-US CEO Forum ...................................................................................................... 137
US-India Joint Strategic Vision for the Asia-Pacific and Indian Ocean Region ....................................................... 137
Joint Statement during the visit of President of USA to India ''Shared Effort; Progress for All'' ................................. 138
India-U.S. Delhi Declaration of Friendship ................................................................................................. 140
Recommendations of High Level Committee on restructuring of FCI...................................................................141
PMs address at Economic Times Global Business Summit .............................................................................. 146
Novel Superabsorbent Hydrogels Technology ............................................................................................. 149
Achievements of the Department of Science and Technology ........................................................................... 150

Economy
Small banks and Payment Banks ............................................................................................................. 152
Coal workers Strike ............................................................................................................................ 153
Index of Industrial Production ............................................................................................................... 155
Indias trade deficit with China ............................................................................................................... 155
Urijit Patel Committee and inflation targeting ............................................................................................. 156
RBI cuts repo rate by 25 basis points .........................................................................................................157
Some basic concepts of Economics .......................................................................................................... 158
Goods and Services Tax ........................................................................................................................ 160
Government wont appeal pro-Vodafone tax order from High Court ................................................................... 162
World Economic Forum ....................................................................................................................... 163
After Make In India, PM to launch services initiative .................................................................................... 165
Trans-Pacific Partnership ..................................................................................................................... 166

Science
What is the difference between GSLV and PSLV? ......................................................................................... 169
India-based Neutrino Observatory ........................................................................................................... 170
Meningitis: Indian vaccine will protect infants in Africa .................................................................................. 171
Crowdsourcing ................................................................................................................................... 171

January 2015

Page 3

January 2015

Page 4

Highlights of Barack Obamas visit to India


The United States said a decade ago it was making a "long-term strategic bet" on India and the visit showed that
India was also ready to reciprocate. Mr Modi and Mr Obama declared Indo-U.S. partnership as a "natural global
partnership" - indicating that the US was not a mere strategic partner but India's principal strategic partner in the
world. The visit was heavy both on symbolism and substance. Barack Obama became the first US president ever to
be the chief guest at India's Republic Day and the first to visit India twice during his presidency.
In the India-US Delhi Declaration of Friendship released during the visit, the two countries outlined values they
share on fundamental freedoms and a rulebased global order. Importantly, the
Declaration agreed to elevate the strategic
partnership between the two countries,
focusing thus not on what has been
accomplished, but what more can be done.

Nuclear logjam broken


Making a joint appearance after meeting PM
Modi on 25th January, Obama said: Today,
we achieved a breakthrough understanding
on two issues that were holding up our
ability to advance our civil nuclear
cooperation, and were committed to moving
towards full implementation. And this is an
important step that shows how we can work
together to elevate our relationship.
Describing the 2008 civil nuclear agreement
as the centrepiece of our transformed
relationship which demonstrated new trust,
Modi said: Six years after we signed our
bilateral agreement, we are moving towards
commercial cooperation, consistent with our
law, our international legal obligations, and
technical and commercial viability. Indian
liability clauses and the US demand that it
be allowed to track fissile material it
supplies to India have come in the way of
commercial operationalisation of the
agreement, keeping out US suppliers.
Briefing reporters, Foreign Secretary
Sujatha Singh said: We have broken the
logjam of the past few years. Based on three rounds of discussions in the Contact Group, we have reached an
understanding on two outstanding issues namely civil nuclear liability and the administrative
arrangements for implementing our 123 agreement. Let me underline, we have reached an understanding. The
deal is done. Both these understandings are squarely within our law, our international legal obligations, and our
practice.
PM Modi received Barack and Michelle Obama at Delhi airport

January 2015

Page 5

During three meetings of the India-US contact group spread over 45 days, India gave a legally-worded assurance
that the suppliers will not be liable under tort law claims a civil wrong addressed by awarding damages. This
assurance to US companies, GE and Westinghouse, is said to have broken the logjam.
Asked whether the Attorney General of India will give the assurance in the form of a memorandum, Joint
Secretary (Disarmament and International Security) Amandeep Singh Gill, who negotiated with the US on the
nuclear liability issue, said: That is work in progress.
On the issue of right to recourse under the India nuclear liability law, India is going to create an insurance pool of
Rs 1,500 crore which will take care of the suppliers liability. This pool will be created by General Insurance
Corporation and four other insurers who will put in Rs 750 crore while operators and suppliers will provide the
remaining Rs 750 crore.
We have an administrative arrangement with Canada and that has been the template for finalising our
administrative arrangement with the US, Gill said. India is learnt to have stuck to its position of allowing only
IAEA inspectors for tracking nuclear material.
For couple of years the deal has been stuck on the fact that the US insisted on "nationality" tracking of fuel and
equipment to make sure it stays in the civilian sector and not cross over into India's strategic programme. India
has opposed it on grounds of sovereignty. India has committed to more intrusive verification by IAEA by signing
the Additional Protocol. India provides all its information to IAEA and has offered to provide these to US. Till
now, America had disagreed. The US has now stepped off the bench to allow the nuclear deal to be done. This
issue has been holding up the India-Japan nuclear agreement too.

Defence and Homeland Security Cooperation


Prime Minister Modi and President Obama welcomed the efforts made by both sides to expand bilateral defence
cooperation in areas of mutual interest and reaffirmed their commitment to continue to work towards deepening
the bilateral defence relationship. The Leaders acknowledged bilateral military ties as the foundation of the
defense relationship and encouraged their respective militaries to pursue additional opportunities for engagement
through exercises, military personnel exchanges, and defense dialogues.
The Leaders also acknowledged the need for the two-way defence engagement to include technology cooperation
and collaboration, co-production and co-development. To this end, the President and the Prime Minister
emphasized the ongoing importance of the Defence Technology and Trade Initiative (DTTI) in developing new
areas of technology cooperation in the defence sector including through co-development and co-production and
the Prime Minister welcomed the U.S. Defense Departments establishment of a dedicated rapid reaction team
focused exclusively on advancing DTTI. The Leaders expressed confidence that continued DTTI collaboration will
yield additional joint projects in the near future.
The President also welcomed the Prime Ministers initiatives to liberalize the Foreign Direct Investment Policy
regime in the defence sector and the Leaders agreed to cooperate on Indias efforts to establish a defence
industrial base in India, including through initiatives like `Make in India.`
Prime Minister Modi and President Obama expressed satisfaction over the efforts made by both countries to
deepen cooperation in the field of maritime security, as reflected in the 2015 Framework for the U.S.-India
Defense Relationship. To this end, they agreed that the navies of both sides would continue discussions to identify
specific areas for expanding maritime cooperation. They also reiterated their commitment to upgrading their
bilateral naval exercise MALABAR.

January 2015

Page 6

Modi and Obama share a light moment

The two sides also noted the growing cooperation between their law enforcement agencies, particularly in the
areas of extradition and mutual legal assistance, to counter transnational criminal threats such as terrorism,
narcotics, trafficking, financial and economic fraud, cybercrime, and transnational organized crime and pledged to
enhance such cooperation further. The President and the Prime Minister also noted the serious risks to national
and economic security from malicious cyber activity and agreed to cooperate on enhancing operational sharing of
cyber threat information, examining how international law applies in cyberspace, and working together to build
agreement on norms of responsible state behavior.
The Leaders committed to undertake efforts to make the U.S.-India partnership a defining counterterrorism
relationship for the 21st Century by deepening collaboration to combat the full spectrum of terrorist threats and
keep their respective homelands and citizens safe from attacks. The Leaders reiterated their strong condemnation
of terrorism in all its forms and manifestations with zero tolerance and reaffirmed their deep concern over the
continued threat posed by transnational terrorism including by groups like Al Qaida and the ISIL, and called for
eliminating terrorist safe havens and infrastructure, disrupting terrorist networks and their financing, and
stopping cross-border movement of terrorists.
The Leaders reaffirmed the need for joint and concerted efforts to disrupt entities such as Lashkar-e-Tayyiba,
Jaish-e-Mohammad, D Company and the Haqqani Network, and agreed to continue ongoing efforts through the
Homeland Security Dialogue as well as the next round of the U.S.-India Joint Working Group on Counter
Terrorism in late 2015 to develop actionable elements of bilateral engagement. The two sides noted the recent U.S.
sanctions against three D Company affiliates. The President and the Prime Minister further agreed to continue to
work toward an agreement to share information on known and suspected terrorists. They also agreed to enter
discussions to deepen collaboration on UN terrorist designations, and reiterated their call for Pakistan to bring the
perpetrators of the November 2008 terrorist attack in Mumbai to justice.

January 2015

Page 7

The President and the Prime Minister also noted the positive cooperative engagement between the Indian and the
U.S. authorities with a view to working together to counter the threat of IEDs and to develop counterterrorism
best practices.

Clean Energy Goal and Cooperation


President Obama and Prime Minister Modi emphasized the critical importance of expanding clean energy
research, development, manufacturing and deployment, which increases energy access and reduces greenhouse
gas emissions. The leaders announced actions to advance India`s transition to low carbon economy. India intends
to increase the share of use of renewable in electricity generation consistent with its intended goal to increase
India`s solar target to 100 gigawatts by 2022. The United States intends to support India`s goal by enhancing
cooperation on clean energy and climate change, to include:
i. Expanding Partnership to Advance Clean Energy Research (PACE-R): A renewed commitment to PACE-R,
including extending funding for three existing research tracks of solar energy, building energy efficiency, and
biofuels for an additional five years and launching a new track on smart grid and grid storage.
ii. Expanding Partnership to Advance Clean Energy Deployment (PACE-D): Both the countries intended to
expand our current Partnership to Advance Clean Energy Deployment (PACE-D) through increased bilateral
engagements and further joint initiatives to expand cooperation in support of Indias ambitious targets in
renewable energy.
iii. Accelerating Clean Energy Finance: Prime Minister Modi emphasized India`s ongoing efforts to create a
market environment that will promote trade and investment in this sector. President Obama welcomed India`s
ambitious solar energy goals and encouraged India to continue its efforts to increase trade and private investment
in this sector. President Obama conveyed the potential availability of U.S. Government official financing in this

January 2015

Page 8

area, consistent with its policies, to support private sector involvement for those entities in contributing to Indias
clean energy requirements.
iv. Launching Air Quality Cooperation: Implementing EPAs AIR Now-International Program and megacities
partnerships, focused on disseminating information to help the urban dwellers to reduce their exposure to
harmful levels of air pollution, and enable urban policy planners to implement corrective strategies for improving
Ambient Air Quality in the cities keeping in view health and climate change co-benefits of these strategies.
v. Initiating Climate Resilience Tool Development: Jointly undertaking a partnership on climate resilience that
will work to downscale international climate models for the Indian sub-continent to much higher resolution than
currently available, assess climate risks at the sub-national level, work with local technical institutes on capacity
building, and engage local decision-makers in the process of addressing climate information needs and informing
planning and climate resilient sustainable development, including for Indias State Action Plans.
vi. Demonstrating Clean Energy and Climate Initiatives on the Ground: Additional pilot programs and other
collaborative projects in the areas of space cooling, super-efficient appliances, renewable energy storage, and
smart grids.
vii. Concluding MOU on Energy Security, Clean Energy and Climate Change: Both countries concluded
negotiations on a five year MOU to carry this work forward, to be signed as early as possible at a mutually agreed
upon date.

Economic Growth
Prime Minister Modi and President Obama expressed confidence that continued bilateral collaboration will
increase opportunities for investment, improve bilateral trade and investment ties and lead to the creation of jobs
and prosperity in both economies. In this regard, the Leaders agreed to continue to strengthen their broad-based
partnership for development through stronger trade, technology, manufacturing, and investment linkages
between the two countries and triangular cooperation with partner countries, and that continued efforts to
maintain labor standards as per domestic law and agreed international norms will make these linkages more
durable. The two sides also committed to continuing to cooperate on the finalization of the Post-Bali Work
Programme in the spirit of the Doha mandate.
The President and the Prime Minister affirmed their shared commitment to facilitating increased bilateral
investment flows and fostering an open and predictable climate for investment. To this end, the Leaders
instructed their officials to assess the prospects for moving forward with high-standard bilateral investment treaty
discussions given their respective approaches.
The President and the Prime Minister also welcomed the fifth annual U.S.-India Economic and Financial
Partnership Dialogue in February, in which the countries will deepen their dialogue on macroeconomic policy,
financial sector regulation and development, infrastructure investment, tax policy, and efforts to combat money
laundering and terrorist financing.
The two sides agreed to hold a discussion on the elements required in both countries to pursue an India-U.S.
Totalisation Agreement.
President Obama commended Prime Minister Modis "Jan Dhan scheme to prioritize financial inclusion for
Indias poor. The Leaders noted Indias intent to join the Better Than Cash Alliance.

January 2015

Page 9

The Leaders committed to explore


areas of collaboration in skill
development ranging from establishing
quality assurance systems for skilling
certification standards, setting up of
skill development centres, nurturing
and promoting social entrepreneurship
and strengthening the innovation and
entrepreneurship ecosystem.
President Obama and Prime Minister
Modi agreed to collaborate in the
implementation of India`s ambitious
Digital India programme and expand
commercial cooperation, including by
encouraging investment engagement in
the Information and Communication
Technology (ICT) sector.
In recognition of the importance of their ongoing commercial discussions, the two sides agreed to hold publicprivate discussions in early 2015 under the aegis of the India-U.S. Commercial Dialogue for a period of two years,
until March 2016, on mutually agreed areas of cooperation.
Recognizing the progress made in constructive engagement on Intellectual Property under the last round of the
India-U.S. Trade Policy Forum held in November, 2014, the Leaders also looked forward to enhancing
engagement on Intellectual Property Rights (IPR) in 2015 under the High Level Working Group on Intellectual
Property, to the mutual benefit of both the countries.
Acknowledging the potential for technological cooperation in the rail sector in augmenting and optimizing India`s
rail infrastructure, the Leaders agreed to facilitate U.S. Trade and Development Agency and Indian Railways
technical cooperation that will assist Indian Railways efforts to modify its leasing and public-private partnership
frameworks to attract private sector funding.
The Leaders recognized the robust public-private U.S.-India civil aviation partnership and agreed to continue
working together to identify emerging technologies and build a larger commercial engagement agenda through
key events such as the 2015 U.S.-India Aviation Summit and demonstration of advanced U.S. technologies.
Reaffirming their commitment to safety and security of civil aviation, the United States and India will continue
consultations between the Federal Aviation Administration (FAA) and the India Directorate General of Civil
Aviation (DGCA) to ensure international safety standards set by the International Civil Aviation Organisation
(ICAO), with the aim of restoring Category I status at the earliest possible time.
Noting the importance of ongoing cooperation in higher education, the President and Prime Minister welcomed
ongoing efforts to extend a knowledge partnership for supporting the Indian Institute of Technology at
Gandhinagar through USAID. President Obama and Prime Minister Modi also pledged to collaborate through
India`s Global Initiative of Academic Networks (GIAN), to facilitate short-term teaching and research programs
by up to 1000 visiting U.S. academics in Indian universities.
The Leaders emphasized the importance of strengthening international financial institutions, including the
International Monetary Fund. The President also affirmed his commitment to enhancing India`s voice and vote in
international Financial Institutions and ensuring that resources are made available and used creatively through

January 2015

Page 10

multilateral development banks for infrastructure financing. Prime Minister Modi appreciated the efforts of the
U.S. Treasury for cooperating with the Ministry of Finance on the Task Force on Resolution Corporation set up in
pursuance of the recommendations of the Financial Sector Legislative Reforms Commission.

Modi and Obama after a joint press conference

High Technology, Space and Health Cooperation


Prime Minister Modi and President Obama reaffirmed their commitment to ensure that partnerships in science,
technology and innovation are a crucial component of the overall bilateral engagement in the 21st century. They
also reaffirmed their support for the role that science, technology and innovation partnerships can play in
addressing pressing challenges in areas such as food, water, energy, climate, and health and developing innovative
solutions that are affordable, accessible and adaptable, meet the needs of the people of the two countries and
benefit the global community. To this end, the Leaders agreed to continue to develop cooperative efforts in many
areas of science, technology, and innovation, including studying the impacts of water, air pollution, sanitation and
hygiene on human health and well-being.
The Leaders also agreed to continue U.S.-India collaboration in hydrology and water studies and monsoon
modelling and noted the need to expeditiously work towards launching an Indo-U.S. Climate Fellowship to
facilitate human capacity building. The Prime Minister and the President also reaffirmed the importance of
ongoing efforts to strengthen women`s participation in science, technology, engineering, and math through
networking and mentoring programs.
The President and the Prime Minister welcome efforts, under the bilateral High Technology Cooperation Group,
to seek timely resolution of the challenges to trade in High Technology goods, including the U.S. licensing
requirements for trade in certain dual use items.
The Leaders reaffirmed the importance of providing transparent and predictable policy environments for
fostering innovation. Both countries reiterated their interest in sharing information and best practices on IPR

January 2015

Page 11

issues, and reaffirmed their commitment to stakeholders consultations on policy matters concerning intellectual
property protection.
President Obama and Prime Minister Modi agreed to further promote cooperative and commercial relations
between India and the United States in the field of space. The leaders noted the on-going interactions between
their space agencies, including towards realizing a dual frequency radar imaging satellite for Earth Sciences, and
exploring possibilities for cooperation in studying Mars.
The Leaders took note of ongoing U.S.-India space cooperation, including the first face-to-face meeting of the
ISRO-NASA Mars Working Group from 29-31 January 2015 in Bangalore, in which the two sides will consider
opportunities for enhanced cooperation in Mars exploration, including potential coordinated observations and
analysis between ISROs Mars Orbiter Mission and NASAs Mars Atmosphere and Volatile EvolutioN mission
(MAVEN). The Prime Minister and the President also welcomed continued progress toward enhanced space
cooperation via the U.S.-India Civil Space Joint Working Group, which will meet later this year in India.
Under the umbrella of an implementing agreement between the U.S. Department of Energy and the Department
of Atomic Energy of India, the Leaders welcomed expanded collaboration in basic physics research, and
accelerator research and development.
The Leaders reaffirmed their commitment to the Global Health Security Agenda (GHSA) and announced specific
actions at home and abroad to prevent the spread of infectious diseases, including a CDC-Ministry of Health Ebola
and GHSA preparedness training, expansion of the India Epidemic Intelligence Service, and development of a
roadmap to achieve the objectives of the GHSA within three years.
The Leaders also committed to multi-sectoral actions countering the emergence and spread of antimicrobial
resistance (AMR), and cooperation in training of health workers in preparedness for infectious disease threats.
The Leaders agreed to focus science and technology partnerships on countering antibiotic resistant bacteria and
promoting the availability, efficacy and quality of therapeutics.
The Leaders welcomed further progress in promoting bilateral cooperation on cancer research, prevention,
control, and management and agreed to continue to strengthen the engagement between the CDC and Indias
National Centre for Disease Control.
The President and Prime Minister also welcomed the upcoming completion of an Environmental Health,
Occupational Health and Injury Prevention and Control MoU between the U.S. Centers for Disease Control and
Prevention and the Indian Council for Medical Research to further collaborative efforts to improve the health and
welfare of both countries citizens.
The Prime Minister and the President also agreed to expand the India-U.S. Health Initiative into a Healthcare
Dialogue with relevant stakeholders to further strengthen bilateral collaboration in health sectors including
through capacity building initiatives and by exploring new areas, including affordable healthcare, cost saving
mechanisms, distribution barriers, patent quality, health services information technology, and complementary
and traditional medicine. The President and the Prime Minister pledged to encourage dialogue between the U.S.
Department of Health and Human Services and its Indian counterparts on traditional medicine. The Leaders also
pledged to strengthen collaboration, dialogue, and cooperation between the regulatory authorities of the two
countries to ensure safety, efficacy, and quality of pharmaceuticals, including generic medicines.
The Leaders also agreed to accelerate joint leadership of the global Call to Action to end preventable deaths among
mothers and children through a third meeting of the 24 participating countries in India in June 2015. As host,
India will showcase the power of new partnerships, innovations and systems to more effectively deliver life-saving
interventions. They also lauded the highly successful collaboration on a locally produced vaccine against rotavirus

January 2015

Page 12

which will save the lives of an estimated 80,000 children each year in India alone, and pledged to strengthen the
cooperation in health research and capacity building through a new phase of the India-U.S. Vaccine Action
Programme.

Global Issues and Regional Consultations


The Leaders agreed to expand their efforts to assist other developing countries and address global development
challenges for the benefit of the wider region and the world and they lauded ongoing triangular assistance, which
may involve U.S.-India collaboration to address development challenges in third countries in areas including
health, energy, food security, disaster management, and womens empowerment. The two sides noted that this
collaboration, which is active with Afghanistan, East and West Africa, may be expanded to additional third
countries.
Further underscoring the importance of implementing
infrastructure projects to enhance connectivity and enable
freer flow of commerce and energy in the region, the Leaders
agreed to develop additional areas in which both sides could
work together, including on India`s initiatives to enhance its
connectivity with the South and South East Asian region. The
President and the Prime Minister also stressed the
importance of the economic and transport connectivity
between Central and South Asia and the need to promote a
secure, stable, and prosperous Afghanistan as part of a
secure, stable, and prosperous region. Reaffirming the
importance of their strategic partnerships with Afghanistan,
the Leaders asserted the importance of a sustainable,
inclusive, sovereign, and democratic political order in
Afghanistan and they agreed to convene further high-level
consultations on Afghanistan in the near future.
The President and the Prime Minister also welcomed the role of the leaders- led East Asia Summit (EAS) process
in promoting open, balanced and inclusive security architecture in the region. Noting the discussions in the sixth
round of the India-US-Japan Trilateral Dialogue, the President and the Prime Minister underlined the importance
of the cooperation between the three countries through identification of projects of common interest and their
early implementation, and they decided to explore holding the dialogue among their Foreign Ministers.
The President and Prime Minister pledged to strengthen their efforts to forge a partnership to lead global efforts
for non-proliferation of WMDs, to reduce the salience of nuclear weapons in international affairs, and to promote
universal, verifiable and non-discriminatory global nuclear disarmament. They supported negotiations on a fissile
material cut-off Treaty on the basis of the Shannon Mandate in the Conference on Disarmament.
As active participants in the Nuclear Security Summit process, the United States and India welcomed progress
towards reducing the risk of terrorists acquiring nuclear weapons or related materials, and noted their shared
commitment to improving nuclear security nationally and globally. The Prime Minister welcomed the hosting of
the 2016 Nuclear Security Summit by the United States. President Obama and Prime Minister Modi also
welcomed the recent convening of the first bilateral nuclear security best practices exchange, under the auspices of
the Global Center for Nuclear Energy Partnership, as an example of their cooperation on nuclear security.
In a further effort to strengthen global nonproliferation and export control regimes, the President and the Prime
Minister committed to continue to work towards Indias phased entry into the Nuclear Suppliers Group (NSG),

January 2015

Page 13

the Missile Technology Control Regime (MTCR), the Wassenaar Arrangement, and the Australia Group. The
President reaffirmed the United States position that India meets MTCR requirements and is ready for NSG
membership and that it supports Indias early application and eventual membership in all four regimes.
The Leaders expressed concern over the Democratic Peoples Republic of Koreas (DPRK) nuclear and ballistic
missile programmes, including its uranium enrichment activity. They urged the DPRK to take concrete steps
toward denuclearization, as well as to comply fully with its international obligations, including relevant UN
Security Council Resolutions, and to fulfill its commitments under the 2005 Joint Statement of the Six-Party talks.
The Leaders welcomed recent progress and noted the criticality of Iran taking steps to verifiably assure the
international community of the exclusively peaceful nature of its nuclear programme, and agreed that this is an
historic opportunity for Iran to resolve outstanding concerns related to its nuclear programme.
Highlighting the United States` and Indias shared democratic values and recognizing the important role of
women in their societies, the Leaders looked forward to reconvening the Women Empowerment Dialogue as early
as possible and reasserted their zero tolerance for violence against women. The Leaders also looked forward to the
reconvening of the Global Issues Forum.
The President and the Prime Minister also reaffirmed their commitment to consult closely on global crises,
including in Iraq and Syria. The Leaders agreed to exchange information on individuals returning from these
conflict zones and to continue to cooperate in protecting and responding to the needs of civilians caught up in
these conflicts.
President Obama reaffirmed his support for a reformed UN Security Council with India as a permanent member,
and both leaders committed to ensuring that the Security Council continues to play an effective role in
maintaining international peace and security as envisioned in the United Nations Charter. They also committed to
accelerate their peacekeeping capacity-building efforts in third countries.

Visa and Social Security Issue


Obama has assured PM Modi that he will look into India's concerns on the H-1B visa issue as part of his
comprehensive immigration reform, US officials said.
Obama told Prime Minister Modi that his administration would be in touch with the Indian government on issues
related to H-1B visas, popular among Indian techies.
"I think what the President indicated is this is the type of issue (H-1B) that we have approached through the
context of comprehensive immigration reform and so, given his ongoing efforts to work with Congress in pursuit
of comprehensive immigration reform, we would be incorporating these types of issues in that process and would
be in touch with the Indian government as that moved forward," Deputy National Security Advisor Ben Rhodes
told US reporters travelling with Obama.
The US agreed to take the first step in addressing India's long-pending demand of signing a Totalization
Agreement that will help Indian workers in the US get annual refunds of around $3 billon (Rs 18,000 crore) worth
of social security contributions they make.
The issue has been pending for years as the US has failed to recognize either the contributions made to the
Employees Provident Fund or the National Pension Scheme as a valid social security contribution in India.
As a result thousands of software and other professionals lose out on the money they contribute to the US scheme
while being stationed there. "Both sides agreed to hold a discussion on the elements required to pursue an India-

January 2015

Page 14

US Totalization Agreement," a joint statement issued after a meeting between PM Modi and President Barack
Obama said.

Indias changing stance on China


The India-US joint vision statement has committed the two countries to promote the shared values that have
made our countries great. This none-too-subtle promise to stand up to Chinas authoritarianism is followed by a
promise to uphold freedom of navigation and over flight throughout the region, especially in the South China
Sea. The declaration marks a dramatic departure in the language of Indian diplomacy, generally shy of such
ideological messaging, but also in attitudes to China. It wasnt too many months ago that New Delhi was reluctant
even to conduct serious military-to-military exercises with Japan, for fear of upsetting China. The turning point in
Modis generally Sinophile thinking may well have been the Chinese intrusion into Chumar back in September,
which took place while President Xi Jinping was visiting Delhi. The action was a warning-growl, coming soon after
India agreed to sell missiles to Vietnam and put in place more robust patrolling on the Line of Actual Control.
India could do little but protest and the sense of humiliation, it is likely, lingered.
The argument underlying Indias policy shift isnt opaque. Beijing, Indias leadership points out, doesnt consult
Delhi before sending its submarines to Sri Lanka or blasting roads through Pakistan-occupied Kashmir. Theres
no reason, they have therefore concluded, for India to be reticent about deepening relationships with Chinas
near-neighbours with countries like Vietnam, Japan, South Korea, Australia and even the Philippines, all of
whom have grown increasingly worried about the dragons unpredictable bursts of ire. Modi is reported to have
spent more than half an hour during his one-on-one conversation with Obama discussing China and the United
States found, to its surprise, that their views were in complete consonance. Like the US and its Asian allies, India
still hopes to grow its economic relationship with China, but will at once participate in growing the strategic
partnership to deter the new giant from using its military muscle.
This argument is, in principle, unexceptionable but it doesnt address the problem of intrusions across the Line
of Actual Control or bring a border deal with China any closer. Indeed, there are even odds it could make both
harder. It takes courage to poke a dragon in the eye. It may even be necessary. But its wise to have carefully
considered the consequences.

Mann ki Baat
Sharing the Mann ki Baat radio platform with Prime Minister Narendra Modi, U.S. President Barack Obama said
governments and leaders today cannot rule through a top-down approach, and should instead reach out to people
in an inclusive way and engage in dialogue with citizens about the direction of their country.
Mr. Obama was responding to a question about how leaders should adapt to a world in which young people were
global citizens with information at their fingertips. Answering the same question, Mr. Modi emphasised on the
power of youth, saying Communists used to say earlier, 'workers of the world, unite.' I think today it should be
youth unite the world.
Mr. Modi had started the Mann ki Baat radio platform in October as a way to directly communicate with people.
Latest edition of the programme was a historic joint address with Mr. Obama. Mr. Obama described India and the
U.S. as natural partners who were making a lot of history in a short time. He added that he was honoured to be
the first U.S. President to visit India on Republic Day.
Over the course of 35 minutes Mr. Modi and Mr. Obama fielded questions that had come in from across the
country ranging from their personal inspirations to their vision for a shared future. Mr. Modi took the first
question on what Mr. Obama's name meant, explaining that 'Barack' in Swahili meant 'one who was blessed.'

January 2015

Page 15

Mr. Obama then gave an opening address before taking questions himself: People are very excited in the United
States about the energy that Prime Minister Modi is bringing to efforts in this country to reduce extreme poverty
and lift people up, to empower women, to provide access to electricity, and clean energy and invest in
infrastructure, and the education system. He added that on all these issues the U.S. wants to partner India since
they are similar to what he himself is trying to achieve through his policies.
When asked if they had ever dreamt of reaching where they are today, both Mr. Modi and Mr. Obama replied in
the negative. Mr. Obama said that their respective stories were an example of the incredible opportunities
available in both countries.
I think both of us have been blessed with an extraordinary opportunity, coming from relatively humble
beginnings. And when I think about whats best in America and whats best in India, the notion that a tea seller or
somebody whos born to a single mother like me, could end up leading our countries, is an extraordinary example
of the opportunities that exist within our countries, Mr. Obama said
Mr. Modi was also asked to compare his two visits to the White House: One as a visitor standing outside the fence
and then as a visiting premier. Mr. Modi said he never thought he would set foot inside and on his first official
visit, Mr. Obama gifted him a book of speeches by Swami Vivekananda at the Chicago World Religions Conference
in 1894. The gesture, he said, left him deeply touched.
To a question on why his two daughters didn't accompany him to India, Mr. Obama said they had school and
couldn't leave. However, he said they were both deeply influenced by the Indian freedom movement and how it
influenced the non-violent civil rights movement in America. I am quite sure that they are going to insist that I
bring them back the next time I visit, Mr. Obama said.

Indo-US Nuclear Deal


The 123 Agreement signed between the United States of America and the Republic of India is known as the U.S.
India Civil Nuclear Agreement or Indo-US nuclear deal. The framework for this agreement was a July 18, 2005,
joint statement by then Indian Prime Minister Dr. Manmohan Singh and then U.S. President George W. Bush,
under which India agreed to separate its civil and military nuclear facilities and to place all its civil nuclear
facilities under International Atomic Energy Agency (IAEA) safeguards and, in exchange, the United States agreed
to work toward full civil nuclear cooperation with India.
This U.S.-India deal took more than three years to come to
fruition as it had to go through several complex stages,
including amendment of U.S. domestic law, especially
the Atomic Energy Act of 1954, a civil-military
nuclear Separation Plan in India, an India-IAEA
safeguards (inspections) agreement and the grant of an
exemption for India by the Nuclear Suppliers Group, an
export-control cartel that had been formed mainly in
response to India's first nuclear test in 1974. In its final
shape, the deal places under permanent safeguards those
nuclear facilities that India has identified as "civil" and
permits broad civil nuclear cooperation, while excluding
the transfer of "sensitive" equipment and technologies, including civil enrichment and reprocessing items even
under IAEA safeguards.
The deal is seen as a watershed in U.S.-India relations and introduces a new aspect to international
nonproliferation efforts. On August 1, 2008, the IAEA approved the safeguards agreement with India, after which

January 2015

Page 16

the United States approached the Nuclear Suppliers Group (NSG) to grant a waiver to India to commence civilian
nuclear trade. The 48-nation NSG granted the waiver to India on September 6, 2008 allowing it to access, civilian
nuclear technology and fuel from other countries. The implementation of this waiver made India the only known
country with nuclear weapons which is not a party to the Non-Proliferation Treaty (NPT) but is still allowed to
carry out nuclear commerce with the rest of the world.
The U.S. House of Representatives passed the bill to approve the deal on September 28, 2008. Two days later,
India and France inked a similar nuclear pact making France the first country to have such an agreement with
India. On October 1, 2008 the U.S. Senate also approved the civilian nuclear agreement allowing India to
purchase nuclear fuel and technology from -- and sell them to -- the United States. U.S. President, George W.
Bush, signed the legislation on the Indo-US nuclear deal, approved by the U.S. Congress, into law, now called
the United States-India Nuclear Cooperation Approval and Non-proliferation Enhancement Act, on October 8,
2008.

Nuclear Suppliers Group


Established in 1975, the Nuclear Suppliers Group (NSG) is composed of 46 nuclear
supplier states, including China, Russia, and the United States, that have voluntarily
agreed to coordinate their export controls governing transfers of civilian nuclear
material, nuclear-related equipment and technology to non-nuclear-weapon states.
The NSG aims to prevent nuclear exports for commercial and peaceful purposes from
being used to make nuclear weapons.
NSG members are expected to forgo nuclear trade with governments that do not
subject themselves to international measures and inspections designed to provide
confidence that their nuclear imports are not used to develop nuclear arms. The NSG
has two sets of Guidelines listing the specific nuclear materials, equipment, and technologies that are subject to
export controls.
The NSG was founded in response to the Indian nuclear test in May 1974 and first met in November 1975. The test
demonstrated that certain non-weapons specific nuclear technology could be readily turned to weapons
development. Nations already signatories of the Nuclear Non-Proliferation Treaty (NPT) saw the need to further
limit the export of nuclear equipment, materials or technology.
In addition, final destinations for any
transfer must have International Atomic
Energy Agency (IAEA) safeguards in
place. The IAEA is charged with verifying
that non-nuclear-weapon states are not
illicitly pursuing nuclear weapons. IAEA
safeguards to prevent nuclear material or
technology from being stolen or
misappropriated for weapons include
inspections, remote monitoring, seals,
and other measures.
The NSG Guidelines require that importing states provide assurances to NSG members that proposed deals will
not contribute to the creation of nuclear weapons. Potential recipients are also expected to have physical security
measures in place to prevent theft or unauthorized use of their imports and to promise that nuclear materials and
information will not be transferred to a third party without the explicit permission of the original exporter.

January 2015

Page 17

The Guidelines are comprised of two parts, each of which was created in response to a significant proliferation
event that highlighted shortcomings in then-existing export control systems. Part I lists materials and technology
designed specifically for nuclear use. These include fissile materials, nuclear reactors and equipment, and
reprocessing and enrichment equipment. First published in 1978, Part I responded to India's diversion of nuclear
imports for supposedly peaceful purposes to conduct a nuclear explosion in 1974. Part II identifies dual-use goods,
which are non-nuclear items with legitimate civilian applications that can also be used to develop weapons.
Machine tools and lasers are two types of dual-use goods. NSG members adopted Part II in 1992 after discovering
how close Iraq came to realizing its nuclear weapons ambitions by illicitly employing dual-use imports in a covert
nuclear weapons program before the 1991 Persian Gulf War.
At a May 2004 meeting, NSG members adopted a "catch-all" mechanism, which authorizes members to block any
export suspected to be destined to a nuclear weapons program even if the export does not appear on one of the
control lists.
To be eligible for importing Part I items from an NSG member, states must have comprehensive IAEA safeguards
covering all their nuclear activities and facilities. In the case of Part II goods, IAEA safeguards are only required
for the specific nuclear activity or facility that the import is destined for.
Because the regime is voluntary, NSG members may ultimately make a political calculation to proceed with a
transfer that violates the guidelines. For instance, Russia transferred nuclear fuel to India in January 2001 even
though 32 of 34 NSG members earlier declared that the shipment would contradict Russia's NSG commitments.
Members are supposed to report their export denials to each other so potential proliferators cannot approach
several suppliers with the same request and get different responses. NSG states are expected to refrain from
making exports identical or similar to those denied by other members.
In 2008, the NSG agreed to exempt India from its requirement that recipient countries have in place
comprehensive IAEA safeguards covering all nuclear activities. The United States pressed for the exemption for
three years to allow nuclear trade with India, and some NSG members were reluctant to agree to such a rule
reversal. The waiver commits each NSG member to regularly inform the group of certain approved transfers to
India and invites each country to share information on their bilateral nuclear cooperation agreements with India.
NSG members periodically review the Guidelines to add new items that pose proliferation risks or to eliminate
goods that no longer require special trade controls. An annual plenary, which is chaired on a rotating basis among
members, is held to discuss the regime's operation, including possible changes to the Guidelines. All NSG
decisions are made by consensus.
Membership - Any state that conducts exports appearing on the Guidelines may apply for NSG membership. A
potential member is evaluated on its proliferation record, adherence to international nonproliferation treaties and
agreements, and national export controls. All existing members must approve an applicant for it to join the
regime. There are several countries with nuclear programs outside the NSG, most notably India, Israel, Pakistan,
and North Korea.

Non Proliferation Treaty


The Treaty on the Non-Proliferation of Nuclear Weapons, also referred to as the Nuclear Non-Proliferation Treaty
(NPT), obligates the five acknowledged nuclear-weapon states (the United States, Russian Federation, United
Kingdom, France, and China) not to transfer nuclear weapons, other nuclear explosive devices, or their technology
to any non-nuclear-weapon state. Nuclear weapon States Parties are also obligated, under Article VI, to "pursue
negotiations in good faith on effective measures relating to cessation of the nuclear arms race at an early date and

January 2015

Page 18

to nuclear disarmament, and on a treaty on general and complete disarmament under strict and effective
international control."
Non-nuclear-weapon States Parties undertake not to acquire or produce nuclear weapons or nuclear explosive
devices. They are required also to accept safeguards to detect diversions of nuclear materials from peaceful
activities, such as power generation, to the production of nuclear weapons or other nuclear explosive devices. This
must be done in accordance with an individual safeguards agreement, concluded between each non-nuclearweapon State Party and the International Atomic Energy Agency (IAEA). Under these agreements, all nuclear
materials in peaceful civil facilities under the jurisdiction of the state must be declared to the IAEA, whose
inspectors have routine access to the facilities for periodic monitoring and inspections. If information from
routine inspections is not sufficient to fulfill its responsibilities, the IAEA may consult with the state regarding
special inspections within or outside declared facilities.
The NPT is the most widely accepted arms control agreement. Only Israel, India, and Pakistan have never been
signatories of the Treaty, and North Korea withdrew from the Treaty in 2003. The provisions of the Treaty,
particularly article VIII, paragraph 3, envisage a review of the operation of the Treaty every five years.
Last year India voted against the provisions of draft resolutions that would have required it to accede to the
Nuclear Non-Proliferation Treaty (NPT). In its explanation of vote, India said it cannot accept the call to accede
to NPT as a non-nuclear-weapon state.
"India's position on the NPT is well-known. There is no question of India joining the NPT as a non-nuclear
weapon state. Nuclear weapons are an integral part of India's national security and will remain so, pending nondiscriminatory and global nuclear disarmament,"
In its explanation of vote, India said it remains committed to the goal of complete elimination of nuclear arms.
"We are concerned about the threat to humanity posed by the continued existence of nuclear weapons and their
possible use or threat of use. India also shares the view that nuclear disarmament and nuclear non-proliferation
are mutually reinforcing. We continue to support a time-bound programme for global, verifiable and nondiscriminatory nuclear disarmament," it said.

123 Agreement
The Henry J. Hyde United States-India Peaceful Atomic Energy Cooperation Act of 2006, also known as
the Hyde Act, is the U.S. domestic law that modifies the requirements of Section 123 of the U.S. Atomic Energy
Act to permit nuclear cooperation with India and in particular to negotiate a 123 Agreement to operationalize the
2005 Joint Statement.
Section 123 of the United States Atomic Energy Act of
1954, titled "Cooperation With Other Nations", establishes
an agreement for cooperation as a prerequisite for nuclear
deals between the US and any other nation. Such an
agreement is called a 123 Agreement. To date, the U.S. has
entered into roughly twenty-five 123 Agreements with
various countries.
After the terms of the 123 agreement were concluded on
July 27, 2007, it ran into trouble because of stiff
opposition in India from the communist allies of the
ruling United Progressive Alliance. The government

January 2015

Page 19

survived a confidence vote in the parliament on July 22, 2008 by 275256 votes in the backdrop of defections by
some parties. The deal also had faced opposition from non-proliferation activists, anti-nuclear organisations, and
some states within the Nuclear Suppliers Group.

Indo US Nuclear Logjam


India has put up a revised proposal of an insurance pool using General Insurance Company (GIC) to alleviate
the risk to U.S. suppliers. An earlier proposal had been made during the UPA governments tenure in March 2014,
but had been rejected. Officials say the new offer would include a pool of GIC, New India Assurance, Oriental
Insurance, National Insurance and United India, that would generate a risk cover of about $242 million.
A second proposal, that U.S. officials have taken back to discuss with lawyers and representatives of American
companies GE-Hitachi and Westinghouse, would entail a clarification of Section 46 of the law that has been
described as vague . At present, Section 46 says that
nothing in the law will exempt the operator from any
proceeding which might, apart from the act, be instituted
against the operator. This has been read to mean that U.S.
suppliers could face tort claims, that is, be sued by victims of
an accident where the nuclear parts are deemed faulty.
Indias Civil Liability for Nuclear Damages Act, 2010
was a watershed moment in international nuclear liability
jurisprudence because of the unique way in which it dealt
with supplier liability. Up until this enactment, all liability
in relation to a nuclear power plant was channeled
exclusively to the operator. The only two situations in which a operator could claim a subsequent right of recourse
against a supplier under international liability law as well as under domestic law of other countries were i) where
the nuclear incident arose out of an act of omission by the supplier with an intent to cause damage (which is
covered under Section 17(c) of the Act); and ii) a contractual right of recourse (which is covered under Section
17(a) of the Act).
The Act however, also introduced a novel concept of supplier liability in Section 17(b) by which the operator would
have the ability to reclaim any compensation it may pay, from a supplier, if the product supplied has patent or
latent defects or the service provided is substandard.
This is contrary to the practice of recourse in international civil nuclear liability conventions, which channel
liability exclusively to the operator. Specifically, it contradicts Article 10 of the Annex to the Convention on
Supplementary Compensation for Nuclear Damage (CSC), an international treaty which India has
signed. This expanded concept of supplier liability is vehemently resisted by major supplier countries including
the United States, Russia and France.
That Section 17(b) is contrary to the global norm is undeniable. However when the global norm itself is
inequitable, there are justifiable reasons to depart from it. The inclusion of Section 17(b) recognises historical
incidents such as the Bhopal gas tragedy in 1984 for which defective parts were partly responsible. The paltry
compensation paid to the victims was facilitated by gaps in legislation and extraordinarily recalcitrant state
machinery.

January 2015

Page 20

However in pursuing the safety of supply, Section 17(b) goes too far in keeping liability for suppliers entirely openended. If liability on suppliers is unlimited in time and quantum, the possibility of getting adequate insurance
cover will reduce. Even if such insurance is available, it could make nuclear energy economically unviable
Countries with a history of nuclear power have in place mechanisms to provide for insurance coverage through
international insurance pools where insurers, operators and states share the risks of an accident, providing access
to a wide pool of compensation. There are about 26 such pools in existence, which also provide reinsurance to
each other. Insurance pools typically require members to be signatories to an international convention (such as
CSC), and to allow reasonable inspections of their nuclear installations.
Finally, Section 46 of the CLND Act contradicts the Acts central purpose of serving as a special mechanism
enforcing the channeling of liability to the operator to ensure prompt compensation for victims.
Section 46 provides that nothing would prevent proceedings other than those which can be brought under the Act,
to be brought against the operator. This is not uncommon, as it allows criminal liability to be pursued where
applicable. However, in the absence of a comprehensive definition of the types of nuclear damage being notified
by the Central Government, Section 46 potentially also allows civil liability claims to be brought against the
operator and suppliers through other civil law. While liability for operators is capped by the CLND Act, this
exposes suppliers to unlimited amounts of liability. Obtaining insurance coverage for any future liability costs on
account of claims by victims in such a case would be next to impossible.
Section 46 should thus be limited to criminal liability, and should clarify that victims who suffer on account of
nuclear damage can institute claims for compensation only under the CLND Act and not by recourse to other
legislations or Courts. A clarification issued by the Attorney Generals office, if not an amendment to the law itself,
will provide much needed assurance to suppliers while furthering national interest.

Rule 24 - Civil Liability for Nuclear Damage Rules, 2011


First, it limits the amount which can be claimed by exercise of the right of recourse to the extent of the operator's
liability or the value of the contract, whichever is less. This means, theoretically, that even if the damages paid by
the operator to victims of a nuclear accident, owing to the fault of the supplier, run into crores of rupees, if the
value of the contract is say one lakh rupees, the supplier will not be liable for anything more than the value of the
contract.
Second, the Rule limits the time during which the right of recourse is available to operators to the product liability
period in the contract or the period of initial licence issued under the Atomic Energy Rules, 2004 (a maximum
period of 5 years), whichever is higher. Suppose, a major nuclear accident is caused due to the fault of the supplier
eight years after the supply (well within the life-cycle of the nuclear plant): the supplier, albeit at fault, cannot be
held liable.
It is believed by legal experts that this rule would not withstand legal scrutiny when challenged in court.

January 2015

Page 21

Health as a Fundamental Right


For the first time since Independence, the Indian government has moved towards making health a constitutional
guarantee, the denial of which will be punishable. The health ministry has released a draft of the National Health
Policy 2015, a document that will provide an overarching framework for the governments health targets.
States would be able to voluntarily opt for this by a resolution of their legislative Assembly. According to the
policy, states with a per capita public health expenditure rate of over Rs.3,800 (at current prices) should be in a
position to deliver on this.
The government is also keen to explore the creation of a health cess on the lines of the education cess for raising
the money needed to fund the expenditure it would entail. While there is intent to increase expenditure on health
care, the draft policy also stresses on the role of private sector. The private sector today provides nearly 80% of
outpatient care and about 60% of inpatient care. While the public sector is to focus on preventive and secondary
care services, the document recommends contracting out services like ambulatory care, imaging and diagnostics,
tertiary care down to non-medical services such as catering and laundry to the private sector.

The draft document highlights the urgent need to improve the performance of health systems, with focus on
improving maternal mortality rate, controlling infectious diseases, tackling the growing burden of noncommunicable diseases and bringing down medical expenses among other things. The policy statement also
assures universal access to free drugs and diagnostics in government-run hospitals.
However, it proposes to make public health system as pre-paid services instead of social service. A corollary of
viewing public services not as free, but as pre-paid services is that quality of care would take the center stage .
India spends just 1.3 percent of its Gross Domestic Product (GDP) on public health care, and even including
expenditure on private health care, the figure stands at 4.3 percent. Comparative data show that in terms of health
care expenditure as a percentage of GDP, India significantly lags behind Brazil, Russia, China and South Africa.

January 2015

Page 22

Since independence, India has twice drafted a National Health Policy frameworkonce in 1983 and then in
2002which have guided the approach towards the health sector in Five-Year plans.
*Provisions for health are not mentioned directly in constitution except in schedule seven in State list (6.Public
Health and sanitation; hospitals and dispensaries) but indirectly in The Preamble , Fundamental rights(14,15, 21
and 47) , Directive Principles, Union List, State List, Concurrent List.
Comments on the Draft National Health Policy
Over 63 million persons in India face poverty every year due to healthcare costs alone with the share of out-ofpocket (OOP) expenditure on healthcare as a proportion of total household monthly per capita expenditure being
6.9% in rural areas and 5.5% in urban areas in 2011-12. In view of this, the central governments draft National
Health Policy (NHP) 2015, which is in the public domain and open to suggestions and comments until 28
February, is particularly significant. The draft NHP intends to make health a fundamental right and therefore its
denial a justiciable matter. It hopes that this will give a push for more public health expenditure as well as for the
recognition of health as a basic human right.
Undoubtedly, this is a welcome proposal but the right to education, which was declared a fundamental right in
2009, comes immediately to mind. The parallels with healthcare are many: the quality of education in government
schools and the quality of services in public hospitals and primary health centres; the insistence, as a result, of
even poor parents on their children attending private schools, however badly run; the beeline to private hospitals
even by poor patients; and the small and large glitches in the implementation of the law. The lesson is obvious:
what looks excellent on paper becomes a different proposition when it has to be put into practice.
The draft policy proposes increasing the expenditure on healthcare from its present level of 1.04% to 2.5% of
grossdomestic product (GDP) in the next five years. This increase is, however, way below the requirement but
what is not convincing is the explanation for keeping it at 2.5%: the healthcare systems low absorption capacity
and inefficient utilisation of funding. Incidentally, the government got a lot of flak for the temporary cut of 20% in
the 2014-15 healthcare budget. The draft policy hopes to create a health cess (similar to the education cess) on
liquor and tobacco products. One will definitely need to examine whether such a cess will be even close to
adequate. Nevertheless, the draft policy promises that there will be universal access to free drugs and diagnostics
in hospitals even as it notes the fact that the national health programmes leave out 75% of the non-communicable
diseases and not all communicable diseases are covered either.
However, it does seek to broaden the definition of primary healthcare to accommodate reproductive and child
health as well as some non-communicable diseases. The draft also seeks to involve panchayati raj institutions in a
big way and lists seven priority areas to get the community and media to participate. Among these are the
Swasth Nagrik Abhiyan (of which the Swachh Bharat Abhiyan is a part), the Nasha Mukti Abhiyan (anti-tobacco
and alcohol measures), Yatri Suraksha (prevention of accidents) and Nirbhaya Nari (against gender violence, sex
determination tests, etc).
According to the draft policy, the private sector provides nearly 80% of outpatient care and 60% of inpatient care.
However, while noting the many concessions by the government to build a positive economic climate for the
healthcare industry and hoping to intervene and to actively shape the growth of this sector for ensuring that it is
aligned to its overall health policy goals, the draft does not go anywhere near spelling out the forms of
intervention, whether institutional or regulatory. Whether it is the National Accreditation Board for Hospitals and
Healthcare Providers or the Clinical Establishments (Registration and Regulation) Act of 2010, the response of
the private players has been far from enthusiastic.
The draft has just one paragraph on mental health noting that it needs urgent attention since the gap between
service availability and needs is widest here with 43 facilities in the nation and 0.47 psychologists per million

January 2015

Page 23

people. It includes the Mental Health Bill (there are a few others too) among those that need to be reviewed.
Considering the state of the mentally ill in this country, this section needed to be much more comprehensive and
well thought out.
Ultimately, the devil is in the detail. Indias public health services need so much more basic infrastructure,
medical and paramedical personnel, ironing out of the implementation wrinkles in the health insurance schemes
like the Rashtriya Swasthya Bima Yojana, promoting computer-enabled systems to reach out to patients (like
Tamil Nadu has done), straightening out of the corruption-ridden system of procurement and distribution of
drugs, these among a long litany of requirements. The private sector needs a massive dose of regulation and
monitoring in almost all aspects, from pricing to crooked third-party administrators to patient-care standards. At
the government level, there has to be a deep commitment to make health-for-all a deliverable right, starting with
plugging the leaks and poor utilisation of funds under various schemes. All this must come before the claim to
make the right to health a justiciable right.

January 2015

Page 24

Governments move to block 32 websites draws flak


The Union government blocked 32 websites, including globally popular ones such as Vimeo, GitHub, Dailymotion
and archive.org that support data-archiving, video-sharing and software development, evoking serious questions
and criticism. The action was sought to be justified on the grounds that these websites were being used for Jihadi
Propaganda by Anti-National groups encouraging Indian youth to join organisations such as Islamic State (IS).
The DoT invoked Section 69A (power of blocking public access to Internet contents) of the Information
Technology Act and the Information Technology (Procedures and Safeguards for Blocking of Access of
Information by Public) Rules to issue the directive on December 16, 2014.
Section 69A of the IT (Amendment) Act, 2008, allows the Central Government to block content where it
believes that the content threatens the security of the State; the sovereignty, integrity or defence of India; friendly
relations with foreign States; public order; or to prevent incitement for the commission of a cognizable offence
relating to any of the above. A set of procedures and safeguards to which the Government has to adhere when
doing so have been laid down in what have become known as the Blocking Rules. It was section 69A and the
Blocking Rules that the Government used to block certain web pages in the wake of the exodus from Bangalore of
large numbers of Indians from the North East, in August 2012.

NITI Ayog
Government has decided to establish NITI Aayog (National Institution for Transforming India) to replace
Planning Commission. NITI Aayog will seek to provide a critical directional and strategic input to the
development process.
The centre-to-state one-way flow of policy, that was the hallmark of the Planning Commission era, is now sought
to be replaced by a genuine and continuing partnership of states.
NITI Aayog will emerge as a "think-tank" that will provide Governments at the central and state levels with
relevant strategic and technical advice across the spectrum of key elements of policy.
The NITI Aayog will also seek to put an end to slow and tardy implementation of policy, by fostering better interministry coordination and better sentre-state coordination. It will help evolve a shared vision of national
development priorities, and foster cooperative federalism, recognizing that strong states make a strong nation.
The NITI Aayog will develop mechanisms to formulate credible plans at the village level and aggregate these
progressively at higher levels of government. It will ensure special attention to the sections of society that may be
at risk of not benefitting adequately from economic progress.
The NITI Aayog will create a knowledge, innovation and entrepreneurial support system through a collaborative
community of national and international experts, practitioners and partners. It will offer a platform for resolution
of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development
agenda.
In addition, the NITI Aayog will monitor and evaluate the implementation of programmes, and focus on
technology upgradation and capacity building.

January 2015

Page 25

Through the above, the NITI Aayog will aim to accomplish the following objectives and
opportunities:

An administration paradigm in which the Government is an "enabler" rather than a "provider of first and last
resort"
Ensure that India is an active player in the debates and deliberations on the global commons
Ensure that the economically vibrant middle-class remains engaged, and its potential is fully realized
Leverage Indias pool of entrepreneurial, scientific and intellectual human capital
Incorporate the significant geo-economic and geo-political strength of the Non-Resident Indian Community
Use urbanization as an opportunity to create a wholesome and secure habitat through the use of modern
technology
Use technology to reduce opacity and potential for misadventures in governance

The NITI Aayog aims to enable India to better face complex challenges, through the following:

Leveraging of India`s demographic dividend, and realization of the potential of youth, men and women,
through education, skill development, elimination of gender bias, and employment
Elimination of poverty, and the chance for every Indian to live a life of dignity and self-respect
Reddressal of inequalities based on gender bias, caste and economic disparities
Integrate villages institutionally into the development process
Policy support to more than 50 million small businesses, which are a major source of employment creation
Safeguarding of our environmental and ecological assets

Composition of NITI Ayog


Chairperson - Prime Minister
Governing Council - Chief Ministers (of States) and Lt. Governors of Union Territories
Regional Councils - Will be formed on the basis of need and will have Chief Ministers Lt. Governors as
members
Vice-Chairperson - To be appointed by the Prime Minister (Arvind Panagariya has been given the post)
Members - Full time Basis (Maximum of 2)

January 2015

Page 26

Part time members (Maximum of 2) They will be from leading universities, research organizations and other
relevant institutions on a rotational basis
Ex Officio members - Maximum of 4 members of the Union Council of Ministers to be nominated by the Prime
Minister
Special invitees - They will be nominated by the Prime Minister and will be experts, specialists and
practitioners with relevant domain knowledge
Chief Executive Officer - Appointed by the Prime Minister for a fixed tenure, at the rank of Secretary to the
Government of India
Secretariat - If deemed necessary
Present Composition:
1. Chairperson: Prime Minister Narendra Modi
2. Vice Chairperson: Arvind Panagariya
3. Ex-Officio Members: Rajnath Singh, Arun Jaitley, Suresh Prabhu and Radha Mohan Singh
4. Special Invitees: Nitin Gadkari, Smriti Zubin Irani and Thawar Chand Gehlot
5. Full-time Members: Bibek Debroy & V. K. Saraswat
6. Governing Council: All Chief Ministers and Lieutenant Governors of Union Territories
7. CEO: Sindhushree Khullar
How is Niti Ayog different from Planning Commission?
Parameter

NITI Aayog

Planning Commission

Financial clout

To be an advisory body, or a think-tank. The Enjoyed the powers to allocate funds to


powers to allocate funds might be vested in ministries and state governments
the finance ministry

Full-time
members

The number of full-time members could be The last Commission had eight full-time
fewer than Planning Commission
members

States' role

State governments are expected to play a more States' role was limited to the National
significant role than they did in the Planning Development Council and annual interaction
Commission
during Plan meetings

Member
secretary

To be known at the CEO and to be appointed Secretaries or member secretaries


by the prime minister
appointment through the usual process

Part-time
members

To have a number of part-time members, Full Planning Commission had no provision


depending on the need from time to time
for part-time members

were

The big difference is, as mentioned above, the States will now have a greater say. Previously it was the Planning
Commission that formulated plans and then asked the States to implement them (provided they agreed), this time
the States themselves will be able to actively participate in the planning so that there is no communication gap and
the plans can be implemented effectively.
Regional councils will be formed to address specific issues particular to those areas impacting the local
populations. Issues of national security that were ignored so far, will be incorporated at various levels of economic
strategy and policy. All the necessary technological upgrades will be implemented and the functioning of the
Aayog will be brought at par with any world-class organisation involved in nation building.
It is believed that since the policy decisions will be made from the bottom of the pyramid and then move upwards,
they will be more realistic and human-centered rather than something being prepared from an ivory tower.

January 2015

Page 27

Planning commission has outlived its utility


Not many will shed tears on the abolition of the Planning Commission. In fact, the previous prime minister
himself had called for redefining its role to suit changing realities. The planning exercise that was followed had
hardly any relevance for the market economy. It did very little to plan and implement even public sector
investments for infrastructure and its role in promoting public-private partnership was mostly seen as obstructive.
The whole exercise of giving approvals to state plans smacked of dispensing patronage. The proliferation of
various centrally-sponsored schemes (CSS) with one size fits all design and conditionality contributed to severe
distortions in public spending. Often, the Planning Commission came up with discretionary transfers to states to
meet non-plan revenue deficits negating the norms set by the Finance Commissions. The presence of a member of
the Planning Commission as a part-time member of the Finance Commission did very little to correct this
anomaly.
There were two contradictions between the Indian development strategy and the institutional framework
constraining economic environment over the years. The first is the contradiction between the planning framework
and the role of the market. The initial years after Independence required a planning frame to allocate the low
levels of savings to invest in much needed infrastructure and priority sectors to overcome severe infrastructure
deficits and the lack of competitiveness of the economy. However, the framework failed to adapt to the transition
after the liberalising reforms were initiated. With fiscal constraints becoming more and more binding and political
economy factors crowding out infrastructure spending with subsidies and transfers, the planning exercise lost
much of its relevance.
The second contradiction was between the centralised command over resource allocation and the developmental
role of the states in a federal polity. The end of single party rule and the emergence of coalition governments and
regional parties as members of the central coalition brought to the fore the contradiction between centralised
planning in a federal framework. The response of the central government was to further centralise even by
intruding into the legislative domains of the states by various means including the proliferation of CSS. The
consequence of the above was that the two important sources of economic dynamism, the private sector and the
states, had to function in a constrained environment.

Criticism of NITI Ayog


It is not just the policy direction of the neo-liberal state that precludes a planning body of the type that the
Nehruvian era had envisioned; the very structure of a neo-liberal state, where the Ministry of Finance is elevated
to a domineering status above all other official organs and is in turn peopled by employees of the World Bank, the
IMF (International Monetary Fund) and other institutions of finance capital, who are thereby basically put in
charge of the economy, has little room for any such autonomous Planning Commission.
The Manmohan Singh government, committed to neo-liberalism but wary of being accused of deviating from its
Nehruvian ancestry, sought an amusing way out of this impasse: it retained a Planning Commission, but neoliberalised its key personnel. Narendra Modi has gone one step further and has dismantled it altogether, making
India join, quite openly, the ranks of several other third world countries, where, basically, global financial
bureaucrats get entrusted with the task of running the economy. The transition from the Planning Commission to
the Niti (National Institution for Transforming India) Aayog thus reflects a transition from a state professing antiimperialism to a neo-liberal state.
Niti Aayog and Centralisation of Power
What needs discussion, since it has received little recognition as yet, is the tremendous centralisation of economic
power that the transition to Niti Aayog entails. The old Planning Commission had two serious failings. The first,

January 2015

Page 28

an obvious one, was that in an economy in which the means of production were largely privately owned, there
were no effective mechanisms for the realisation of the plans formulated by it.
Various instruments were tried, such as a licensing policy, to make the private sector conform to the overall plan.
But these, as is well known from a host of official committees, were ineffective, which also resulted in a significant
trend towards centralisation of capital, and hence an increase in wealth and income inequalities. This fact had so
alarmed Jawaharlal Nehru that he had set up in the late 1950s the Mahalanobis Committee on inequalities. In
short, planning in India was hamstrung from the beginning.
There was however a second flaw of the plan process. The Planning Commission, though it was meant to effect
national economic planning, was a central government entity with no representation from the states. It thus
went against the spirit of federalism, and gave expression to that strand of thinking within the Constituent
Assembly which saw the central government as the continuation of the British imperium. While neo-liberal
economists have gone to town over the constricting of private initiative that planning in India involved (though
the private sector itself had asked in its 1944 Bombay Plan for substantial public investment, to be financed not by
taxing capitalists but through deficit financing and to be handed over to capitalists after the teething troubles were
over), not much is ever heard about the constricting of state government initiatives under Indian planning. And
the crucial point here is this: the constraints on state governments will be tightened rather than loosened in
the Niti Aayog era.
To be sure, only the outline of the Niti Aayog is available till now, but the indications are already quite clear. There
are, as is well known, three main channels through which funds get devolved from the centre to the states:
through the Finance Commission, through the Planning Commission and through discretionary transfers. Barring
the Finance Commission which is a constitutional body, the other two channels basically express the discretion of
the central government; and even in the case of the Finance Commission, since the centre appoints its members
and ultimately fixes its terms of reference, the central writ is all powerful, a fact that had caused Amaresh Bagchi
to submit a dissenting note to the Eleventh Finance Commission when it laid down conditionalities (in keeping
with the neo-liberal predilections of the centre) for making available to states even such resources as were
constitutionally their due.
Likewise the proliferation of centrally-sponsored schemes handed down to the states where they have to
contribute a certain share, which is itself arbitrarily fixed by the centre, has further taken away the freedom of
state governments to make their own state plans.
Even so, however, the three bodies, the Finance Commission, the Planning Commission, and the Ministry of
Finance, can be ranked in that order in terms of the looseness of the restrictions they impose on the transfers
effected through them from the centre to the states. The disappearance of the Planning Commission, which would
mean that what used to be plan transfers would now be doled out through the finance ministry, would entail both
a possible reduction in the total magnitude of transfers, and a definite increase in the centres control over states
plans.
There is a second reason for believing this to be so, and that has to do with the abolition of the National
Development Council (NDC), where the state chief ministers were represented. This, though not a constitutional
body, had a commanding presence, where the states, deriving strength from one another, made a definite impact.
Since its decisions, which included the ultimate approval of plans, were taken through a consensus, the centre was
often forced to yield on certain matters (though this did not prevent it from flouting the unanimous views of chief
ministers on some occasions, such as the funding of the Sarva Shiksha Abhiyan). The elimination of the NDC is a
major blow to the power of the states. While the governing council where chief ministers are to be represented is
likely to be a purely formal body concerned with the governance of the Niti Aayog, rather than with basic
development issues, the meetings of the regional councils are likely to be occasions where the states supplicate to
the centre for this or that favour. The regional consultations that are supposed to replace NDC meetings are more

January 2015

Page 29

likely to be occasions where the states supplicate to the centre for this or that favour, rather than serious
challenges to central schemes and programmes.
It may be argued that the Niti Aayog will entail neither a reduction in the amount of resources available to the
states, nor any increase in the centres control over state plans, since it will be open to the states to tie up with
capitalists, both domestic and foreign, to work out investment projects of any description and any amount. But
that is precisely what is meant by an increase in central control over state plans. The centres forcing states to go
in for public-private partnerships (which the Manmohan Singh government had tried to do unsuccessfully), the
centres forcing states to vie with one another to attract private capital to their territories, the
centres imposition of the neo-liberal model on all states by ensuring that resources available to each state, which
the concerned state government can spend on a plan of its own choice rather than on a plan in keeping with what
the centre considers development, are minuscule: all this is precisely what is meant by the centralisation of
economic powers. The Niti Aayog era will mean that states will not be allowed to go their own ways, not even to
the extent that the Planning Commission era had allowed. Centralisation will be the mechanism for imposing neoliberalism on the country at large.

January 2015

Page 30

Consumer Protection Act in shambles


Passed in 1986, the Consumer Protection Act (CPA) was hailed worldwide as a very comprehensive legislation for
ensuring justice to the common man. However, as the law completes a quarter century of functioning in 2014,
activists around the country are wondering if the spirit of the Act lies in shambles. Before 1986, aggrieved citizens
had to approach civil courts, where cases took years, and the procedures were intimidating, with lawyers, court
fees, stamp paper, etc. The new law sought to provide, through a three-tier mechanism of quasi-judicial consumer
courts at the district, state and national levels, speedy resolution of grievance (within 90 days) with no court fees,
no need for lawyers, no stamp paper; just a simple complaint on plain paper listing the facts of the grievance was
enough. Over the years, the 90-day limit got tossed aside. Cases now drag on for years. Instead of being free, a fee
(ranging from a minimum of Rs 100, plus bank charges for demand drafts) has to be paid now, following an
amendment in 2003. Affidavits, legal paper and mandatory notarised submissions have complicated the
procedures, where once, just three documents (the complaint, opposite partys reply, and rejoinder) sufficed, since
justice was to be according to fairness and principles of natural justice, not according to the letter of the law.
Where once lawyers were not required (even barred unless the complainant opted to employ one; the Bar Council
contested this rule, citing their right to earn a living) today consumer courts are overrun by lawyers in black
coats who appropriate all the front seats introducing all the time-consuming technicalities that these fora were
specifically meant to avoid. (Under the Act, technicalities are not to be encouraged, and the only procedure to be
followed is the principle of natural justice.) This results in endless adjournments (which the court can refuse, but
invariably grants). A case against the Maruti Company filed by a 76-year-old complainant went to 26
adjournments over 38 months. He died before getting redress. Under an amendment of 2003, the courts can
award costs to the complainant for each adjournment, but most complainants are unaware of this provision, and
the court does not advise them either. The amendment requires the reasons for each adjournment to be recorded.
This rule is flouted too. Backlogs accumulate. Over 3.5 lakh complaints were pending at the last count. This is
hardly simple or speedy or consumer friendly. Multinational companies can afford to employ lawyers to use
legal jargon and protect the interests of the manufacturer, rather than ensure justice to aggrieved customers. Most
complainants, on the other hand, cannot afford to employ a lawyer to fight for refund of a few thousand rupees
after getting saddled with a malfunctioning appliance. It becomes an unequal fight between a professional lawyer
and a lay consumer, even in a consumer court meant to offer justice without intimidation or expense.
The Bengaluru forum cites a funds crunch for demanding stamps and envelopes. In that case why not display
clear instructions on the board at the entrance, along with other instructions? Because it is not compulsory, says
the staff. Seeking explanations from the State Commission is pointless as the instructions for collecting stamps
came reportedly from the commission itself. A query sent to the NCDRC seeking clarification, in April 2013
brought neither a response nor even an acknowledgement.
Governments Apathy
Having passed the law in 1986, the government did nothing thereafter. There were no appointments, no budget
allocation, no infrastructure, until Common Cause, a non-governmental organisation (NGO) founded by H D
Shourie, filed a public interest litigation before the Supreme Court in 1989. The apex court ordered the law to be
activated within six weeks. Fearing contempt of court charges, the government set up consumer courts hurriedly,
but with scant interest. For example, the district forum at Mumbais Nariman Point was housed in decrepit
barracks next to a stinking toilet; some others had no proper clerical staff, no stenographer to dictate orders to (so
orders reached the parties after four weeks whereas the limit for filing an appeal is 30 days). The district forum at
Mysore was set up 10 km from the nearest bus stop. Consumers convenience was, apparently, not a priority.
Many of the 629 consumer courts around the country have positions vacant and cannot function as intended with
a full bench of three adjudicators. The one at Goa had no president for a long time, so the president of the forum

January 2015

Page 31

at Mumbai went over twice a month. One reason for posts remaining vacant is that the remuneration offered is
not attractive enough for magistrates to agree to serve on the fora. Curiously enough, the proposed amendments
of 2014 specify a salary for the commissioner to be appointed under the new Consumer Protection Authority on
par with secretaries to the government (with five deputy commissioners drawing joint secretaries salaries). If
raising the pay is an option, why create a fresh Consumer Protection Commission (as the amendment proposes)
instead of making salaries more attractive for those serving on the existing three-tier mechanism? The
amendment also suggests clubbing of adjacent district fora, and activists wonder how this could facilitate speedy
resolution of complaints. The existing three-tier mechanism was well intentioned, but official apathy, not its
design, has reduced its effectiveness.
Focus on Justice Lost
In the enthusiasm of the earlier years, some important landmark orders were handed out under the CPA. For
example, courier companies used to restrict their liability in case of delay or loss, to just Rs 100, by printing a
small declaration to this effect on the receipt. This was overruled by precedent setting orders awarding higher
compensation in cases where the complainant was able to prove loss and deficiency of service.
Educational institutions mention on their receipts that fees once paid will not be refunded under any
circumstances but the NCDRC has struck this down and students who withdraw without attending a single class
have received refund orders under the CPA in several instances.
Dry cleaners receipts used to say their liability for any loss or damage was restricted to Rs 100, but this too has
been challenged and adequate compensation ordered to be paid.
Multiple Degenerations
Earlier, complainants used to receive intimation through postcards about dates fixed for a hearing. No such
intimation is now sent. Even self-addressed reply cards sent with complaints are not mailed back. The registrar of
each forum used to be authorised to sign as notary for affidavits required to be submitted, at no cost to the
complainant. During the hearing of the complaint against Sony, the Bangalore forum did not even have a
registrar. Finding a notary involved additional expense. Such steady degeneration of facilities and entitlements
marks the working of most of the fora around the country. In spite of having computer facilities (unlike in the
early years) the fora do not seem to keep abreast of precedent setting orders from around the country.
Complainants are expected to cite orders to support their claims, which the average complainant cannot. Lawyers,
with access to legal journals, have an unfair advantage, when they are engaged by manufacturers against
complainants with grievances about faulty gadgets or deficiency in service which the consumer courts ignore.
Justice Patnaik of the Orissa State Commission observed in a complaint by Arati Mohanty and Pramodnath Das
that the trader.cannot put a condition at the time of selling that under no circumstances will the money be
refunded.
The union minister for consumer affairs had sent out a circular to all state chief secretaries in 1999, saying that the
clause goods once sold cannot be returned or exchanged is unethical and to be forbidden. Neither the states
chief secretaries nor the union government have bothered to enforce this far-reaching order, and consumers
continue to be at the receiving end of an exploitative relationship as buyers of goods and services, 15 years after
such a directive from the highest authority. As one columnist put it, the slogan Jago grahak, jago (wake up,
consumer, wake up), coined by the Ministry of Consumer Affairs, needs to be reworded, to awaken the
department itself, if the gap between the intentions of the Act and its implementation is to be bridged.

January 2015

Page 32

Amendments to Land Acquisition Act


Through an executive order, the Cabinet has amended
the Right to Fair Compensation and Transparency in Land
Acquisition, Rehabilitation and Resettlement Act, 2013.
The amendments have now relaxed the requirements of
consent and Social Impact Assessment survey for projects
in the following areas:

1. Defence and defence production


2. Rural infrastructure (including rural electrification)
3. Affordable housing
4. Industrial corridors
5. Social infrastructure projects including PPPs in which ownership rests with the government
The higher rates of compensation, as originally prescribed in the existing Act, would however continue. Under the
2013 Act, compensations were hiked up to four times and twice the market value in rural areas and urban areas,
respectively.
The 2013 law had also required consent from 70 per cent of the affected land owners in case of their lands being
acquired for a public private partnership (PPP) project. If the acquisition was meant for private companies,
consent from 80 per cent of the affected owners was required.
The provision also mandated a Social Impact Assessment survey to be held along with the process of getting the
families' consent. The Act said its objective was to transform the process of land acquisition into a humane,
participative, informed and transparent process.
The amendments, the government explained, were meant to mitigate procedural difficulties brought about by
the original law in 2013. The second important aspect of the amendment is to speed up development and security
related projects without compromising on the benefits to be given to the farmers. The earlier provision that land
unused for five years had to be returned to the original owners has been done away with.
A Press Information Bureau statement said, due to the prolonged procedure for land acquisition, neither the
farmer is able to get benefit nor is the project completed in time for the benefit of society at large.
Section 105 of the existing Act has been amended to include 13 statutes previously exempted from the
requirement of payment of compensation. These Acts were listed in the Fourth Schedule of the existing Act. The
statutes are:

January 2015

Page 33

Ancient Monuments and Archaeological Sites and Remains Act 1958


Atomic Energy Act 1962
Damodar Valley Corporation Act 1948
Indian Tramways Act 1886
Land Acquisition Act 1885
Metro Railways (Construction of Works) Act 1978
National Highways Act 1956
Petroleum and Minerals Pipelines Act 1962
Requisitioning and Acquisition of Immovable Property Act, 1948
Coal Bearing Areas Acquisition and Development Act 1957
Electricity Act 2003 and Railways Act 1989

The present amendments bring all these exempted 13 Acts under the purview of this Act for the purpose of
compensation as well as rehabilitation and resettlement. Therefore, the amendment benefits the farmers and the
affected families.

Industry

Farmers

Ordinance envisages projects in defence, rural


housing and industrial corridors as exempt from
seeking 80% approval from affected persons.

Farmers' compensation will remain the same


four times the market rate for urban areas, and
twice for rural areas.

Private hospitals and educational institutions will


be included under definition of public purpose, and
exempt from SIA.

13 statutes that were previously exempted from the


rigours of compensation have now been included.

The Ordinance aims to make land acquisition easier


for industries, as delays in approvals have
restricted growth in industry and infrastructure,
according to stakeholders.

Multi-crop land can be acquired for five purposes


without consent of affected families: national
security, defence, rural infrastructure, industrial
corridors and social infrastructure

*Social Impact Assessment


SIA is carried out as socio-economic survey that identifies social, cultural and economic impacts on people and
communities facing project-induced displacement. In addition, data thus generated is used in designing
mitigation measures as well as in monitoring mitigation implementation.

January 2015

Page 34

Social impact :- The consequences to human populations of any public or private actions that alter the ways in
which people live, work, play, relate to one another, organize to meet their needs, and generally cope as members
of society. The term also includes cultural impacts involving changes to the norms, values, and beliefs that guide
and rationalize their cognition of themselves and their society.

Section 66A of the IT Act


The Supreme Court is examining the constitutional validity of Section 66A of the amended Indian Information
Technology Act, 2000. A batch of petitions have alleged that the section tramples upon the Fundamental Right to
freedom of speech and expression, and asked that it be declared unconstitutional.
What is Section 66A of the IT Act?
Any person who sends, by means of a computer resource or a communication device,
(a) any information that is grossly offensive or has menacing character; or
(b) any information which he knows to be false, but for the purpose of causing annoyance, inconvenience, danger,
obstruction, insult, injury, criminal intimidation, enmity, hatred or ill will, persistently by making use of such
computer resource or a communication device,
(c) any electronic mail or electronic mail message for the purpose of causing annoyance or inconvenience or to
deceive or to mislead the addressee or recipient about the origin of such messages,
shall be punishable with imprisonment for a term which may extend to three years and with fine."
What is the problem with that?
The vagueness about what is offensive. The word has a very wide connotation, and is open to distinctive, varied
interpretations. It is subjective, and what may be innocuous for one person, may lead to a complaint from
someone else and, consequently, an arrest under Section 66A if the police prima facie accepts the latter persons
view.
How did the controversy begin?
The first petition came up in the court following the arrest of two girls in Maharashtra by Thane Police in
November 2012 over a Facebook post. The girls had made comments on the shutdown of Mumbai for the funeral
of Shiv Sena chief Bal Thackeray. The arrests triggered outrage from all quarters over the manner in which the
cyber law was used.
How frequently has 66A been used?
Most cases of arrest were reported in 2012. Jadavpur University professor Ambikesh Mahapatra was arrested for
forwarding caricatures on Trinamool Congress chief Mamata Banerjee on Facebook. Activist Aseem Trivedi was
arrested for drawing cartoons lampooning Parliament and the Constitution to depict their ineffectiveness. Air
India employee Mayank Sharma and K V Rao from Mumbai were arrested for allegedly posting offensive
comments against politicians on their Facebook group.
Businessman Ravi Srinivasan was booked by Puducherry police for an allegedly offensive tweet against the son of
a former cabinet minister.
What are the grounds for the challenge?
While the objective behind the 2008 amendment was to prevent the misuse of information technology,
particularly through social media, Section 66A comes with extremely wide parameters, which allow whimsical
interpretations by law enforcement agencies. Most of the terms used in the section have not been specifically
defined under the Act. The petitions have argued that it is a potential tool to gag legitimate free speech online, and
to curtail freedom of speech and expression guaranteed under the Constitution, going far beyond the ambit of
reasonable restrictions on that freedom.

January 2015

Page 35

What has the court said so far?


The Supreme Court, in the preliminary hearing, accepted the contention that the provision was very widely
drafted, and gave arbitrary powers to police officers to make arrests. Nudged by the court, the central
government issued a set of guidelines in January 2013, intended to prevent misuse of the provision. These
guidelines mandated that only senior police personnel could order arrests under this section. The petitioners
have, however, maintained that the guidelines could not redeem a provision that was otherwise unconstitutional.

Indias preparedness to fight Ebola


Considering that the 2014 Ebola epidemic was confined to four contiguous west African countries (Liberia, Sierra
Leone, Guinea and Mali) and affected with secondary cases only four other countries (Senegal, Nigeria, Spain and
the United States), the chances of the virus entering India, or any other country, are extremely low.
Cote dIvoire shares borders with Guinea, Liberia and Mali, but so far no case has been reported in that country.
The Ebola Haemorrhagic Fever epidemic began in Guinea in December 2013 and spread to other countries in
early 2014, cumulatively recording over 20,000 cases and nearly 8,000 deaths. These are the counted figures
certainly gross underestimate. The death rate is widely quoted to be 70%-80%. The epidemic continues with ups
and downs but the peak seems to be over in Liberia; Mali is probably free of the disease.
For India, the threat remains as long as the epidemic continues. If the virus enters India, what might its
transmission dynamics be? What is Indias track record of coping with diseases with high fatality? How did other
countries prepare themselves to respond in case the virus entered their territory? What is special about Ebola
disease setting it apart from others? How prepared is India to cope with its entry in case it happens? How robust
is Indias health management system in general?
Details of the Disease
The first outbreaks of Ebola virus disease (Ebola for short) were in 1976 in Sudan and Zaire. It recurred in Sudan
in 1979 and 2004; in Zaire in 1995. Outbreaks occurred in Gabon in 1994, 1996 and 2001; in Uganda in 2000,
2007 and 2012; in Republic of Congo in 2001-03, 2007, 2012 and 2014. All of them affected relatively small
numbers 20 to 400, with death rates of 50%-80%. Hospitals were foci of the spread; healthcare workers were at
a high risk of infection, like family members who cared for the sick or prepared dead bodies for funeral. The
outbreaks appeared to be self-limited with hospitals taking the precaution of safe handling of blood and body
fluids. Thankfully, the virus seemed an inefficient spreader between humans. Ebola causing a huge multi-country
epidemic was unexpected and remains unexplained. Traditional funeral practices, low literacy and very weak
health management system, common to these countries, have certainly contributed to the epidemic this time.
Among directly human-to-human transmitted diseases, Ebola is the most scary, this time with high transmission
frequency to caregivers, no specific treatment and very high death rate. The reservoir of the virus is the bat;
animals in the bush get infected probably via bat saliva on half-eaten fruits fallen on the ground. Humans get
infected from animals, particularly those hunted for bush meat. Human-to-human transmission becomes an
outbreak. The virus is non-pathogenic in bats, but highly pathogenic in humans with the clinical range from no
disease in some, but fever, influenza-like symptoms, diarrhoea, vomiting and haemorrhagic fever with high death
rate in others.
Recent information from the new treatment station run by US experts in Freetown, Sierra Leone, suggests that
good supportive care can bring case-fatality down to less than 24%. Two nurses who got infected in the US and
were treated there, both recovered. Severe fluid loss through watery diarrhoea and consequent low blood pressure
are reasons for death; aggressive fluid management seems to save lives. So, high death rate is mainly due to lack of
quality healthcare. A moderate death rate is inherent and unavoidable for Ebola; Ebola itself should be prevented
to prevent death.

January 2015

Page 36

Economic reforms and liberalisation have made India the worlds third largest economy. There is no sign that our
health and economic experts realise its implications in terms of health of the people; so too in the context of the
African Ebola epidemic. India has donated over $10 million, but in general remains indifferent to the epidemic,
with the only response being the narrow and immediate self-interest of screening of passengers from affected
countries at airports. Our leaders are not thinking into the future.
Cubas response is inspirational. A country of 11 million people, it sent 165 well-trained healthcare professionals to
Sierra Leone and 296 to Liberia and Guinea (In the Medical Response to Ebola, Cuba Is Punching Far Above Its
Weight, Washington Post, 4 October 2014). Cubans not-so-good English was a minor handicap. Cuba has some
50,000 health professionals working in 66 countries; this is at once medical diplomacy and expression of
solidarity with those in need. An estimated $8 billion is Cubas income from this export of medical expertise.
Cubas own healthcare is one of the worlds best in quality and equity. We have good English but poor
understanding of health diplomacy.
It is an eye-opener to learn how China reacted. In addition to several rounds of monetory donations totalling over
$10 billion, Chinese infectious disease experts have established two mobile laboratories in Sierra Leone and a
state of the art bio-safety-assured 100-bed hospital in Liberia. Earlier they had sent several teams of
epidemiologists and experts in infection control and personal protection. China is making sure that they hone
expertise combating deadly diseases, and earn West Africas goodwill bonus for business success to grow from
strength to strength. Chinese military scientists have also developed a candidate vaccine; this is in addition to two
other candidate vaccines from the National Institutes of Health in the United States and the firm,
GlaxoSmithKline.
To become a world leader, India must learn to behave like one; that requires a realistic world view. The
importance given to human health is strikingly different in Cuba and China from that of India. Will India be
judged as an enlightened well-wisher of underprivileged African nations? The countries named above and several
European counters have special treatment centres for infectious disease with high mortality. India does not have
such well-prepared hospitals or trained health workers. We could only remain indifferent as we are unprepared
for getting involved in international health problems. We must first take national health problems seriously before
aspiring to become a global leader.
Transmission Dynamics
Direct physical contact with blood, body fluids, excreta and vomit was, until now, believed to be the channel of
virus transmission, in which case precautions we use in the care of AIDS patients should have sufficed for
personal protection of healthcare workers. The magnitude of the present epidemic and its rapidity of spread
suggest that virus transmission occurs more easily than believed in the past. Mucosal contact, including
inhalation, of droplets and aerosol of body fluids, perhaps including oral/throat secretions, are feared as channels
of transmission, although there is no clear evidence. Space suit-like personal protection equipment (PPE) is
mandatory now for every healthcare worker for every patient room visit. For this eventuality, namely having to
treat Ebola patients, India is ill-prepared.
According to press releases on 25 August 2014 by the World Health Organization (WHO), over 240 doctors,
nurses and other hospital workers had fallen ill with Ebola in West Africa and over 120 have died. The loss of so
many doctors and nurses made it difficult for WHO to secure support from foreign medical staff. By end
September the number of deaths climbed to over 200. In the US, in spite of all precautions and personal
protective equipment, two nurses got infected from the first Ebola patient treated in a US hospital. Both of them
were detected and treated early; both recovered.

January 2015

Page 37

Another haemorrhagic fever, due to Crimean-Congo virus, is transmitted to humans from animals by ticks and
human-to-human through contact with blood/body fluids. In 2011 a case was hospitalised in Ahmedabad, and a
nurse and a doctor got infected and died. This illustrates that our medical staff is not well-versed with safe care of
any haemorrhagic fever. In 2012, another doctor died in the same city, with the same disease, after contact with
the blood of a patient. Ebola will be more easily transmitted human-to-human.
Indias Health Management
In countries that take human health seriously, the health management system has two wings: public health and
healthcare. Public health is the government infrastructure for health protection from preventable diseases and
from social and environmental risk factors of diseases akin to the police force protecting citizens from law-andorder incidents. Sectors of health, animal management, agriculture, environment, water, sanitation, local
government, tourism, food, etc, are involved in generating risk factors. A separate ministry or at least a fullfledged department under the Union Ministry of Health, with trained cadre in every district and city, supported by
an adequate work force must be created if India takes human health seriously.
Our cultural beliefs are that illness is either due to personal mistakes of daily routine, wrong foods, etc, or due to
malignant planetary influences; the consequence of karma from past lives; punishment from god or deities. All
these are at variance with the concept of social and environmental determinants of diseases. Microbial causation
of diseases is not accepted by our traditional culture. All these seem to tell our leaders that diseases are not
preventable by human interventions; hence public health, for organised human interventions to prevent diseases,
is both culturally alien and unnecessary.
Healthcare is service rendered to individuals after they fall ill akin to protecting victims of crime or calamity.
Healthcare can be rendered by institutions by the public sector using revenue funds or by private sector billing the
clients. The inequity of some getting service free while others paying cost plus an unregulated profit margin, is of
no concern to our leaders.
Healthcare cannot stand in for public health. The lack of public health has resulted in India being unable to
prevent diseases that the West got rid of before the early 20th century cholera, typhoid fever, malaria,
tuberculosis, to name a few. Our healthcare institutions are overburdened with such diseases.
Learn from Experiences
In late September 2014, a Liberian arrived in Texas and reported with fever to a big hospital. He was otherwise
well enough to be sent home with simple medications. Two days later he came back, severely ill, and that is when
the penny dropped; he was tested for and found positive for Ebola. Every one of his fellow passengers in the flight
and in the local community were counted, and followed up for 21 days to make sure none was infected; none was.
Ebola does not spread during the incubation period.
What should have alerted the emergency room physicians? Travel history; arriving from Liberia should have been
taken seriously. Imagine such an eventuality in one Indian hospital. The disease would have been undiagnosed
until late into its course or after death, by which time several hospital staff would have been infected and they
would start small outbreaks in their families and wherever they went for treatment.
What should India do? First, the Government of India should name one event manager who would develop a
plan of action in case Ebola enters India, through a traveller. India should create a mechanism for the event
manager to communicate with every hospital in the country to inform the dos and donts. Doctors take a history of
the patients illness; this should include travel history. Also, the event manager should be the spokesperson for the
government to inform the public authentic information. If this process is closely linked with all states and union
territories, then every state will be prepared.

January 2015

Page 38

Remember what happened when the pandemic influenza reached India in 2009? Infected persons were made to
crowd in selected testing centres, thereby rapidly spreading infection to many others. This is exactly the opposite
to what other countries did they asked those with influenza-like symptoms to stay home and report only to a
chosen doctor. The fire department must be open all the time; not just after a fire is reported.
Ebola and pandemic flu teach us to expect the unexpected and be prepared. New diseases are appearing in the
world again and again. We live today in a global village. Ebola-infected bats are probably present in Asia. Nipah
virus infected bats are widely prevalent in East Asia; there is no guarantee their territorial flight paths will not
extend to peninsular India. Is India prepared? Who exactly is in charge?

Government freezes accounts of international NGOs


After taking action against the international environment group Greenpeace, the government has clamped down
on four American NGOs working in the same field Avaaz, Bank Information Centre (BIC), Sierra Club and
350.org.
Over the past month, the Ministry of Home Affairs (MHA) has directed the Reserve Bank of India (RBI) to stop all
foreign funding into the accounts of these NGOs or their representatives without MHA clearance. A letter issued
by the Director of the Monitoring unit for NGOs said it had been decided to keep a watch on all the activities
funded by U.S.-based donor agencies and lists the four groups. In 2013 India took similar action against antinuclear groups in Kudankulam.
As a result of the latest MHA order, every fund transfer from abroad for their activists in India will be held back
pending clearance.
According to RBI records, the international NGOs were not registered with the government. Neither had their
employees in India applied for FCRA clearance. The MHA is also going to inquire into all remittances into India
from these groups since January 2013.
Last year also saw the leak of an IB report titled Concerted efforts by select foreign-funded NGOs to take down
Indian development projects. It contended that several foreign-funded environmental NGOs were targeting
development projects across the country.

FCRA- Foreign Contribution Regulation Act


The FCRA 2010 seeks to consolidate the law to regulate the acceptance and utilisation of foreign contribution or
foreign hospitality by certain individuals or associations or companies and to prohibit acceptance and utilisation
of foreign contribution or foreign hospitality for any activities detrimental to the national interest.
As per the act, entities which cannot access any foreign contributions include:

Candidates for elections


Correspondents, columnists, editors, owners, printers of News papers
Judges, Government Servants etc.
Member of legislatures
Political parties
Any organization of a political nature
Association or company engaged in the business of news broadcast through TV or internet or an individual
associated with such organizations

January 2015

Page 39

The FCRA 2010 restricts the utilisation of foreign contribution in respect of speculative business which includes
investment in mutual funds or shares or any schemes promising high returns, however a debt- based secure
investment is excluded.
Organizations with a definite cultural, economic, educational, religious or social programme can accept foreign
contributions, however to do so they have to register themselves with the central government. The funds so
received by the organization must be used only for the purpose for which they were received. To be so registered
with the government the organization must be in existence for a period in excess of 3 years. Organizations
registered under the FCRA 2010 will be required to renew their certificate of registration every five years.
The Central Government now has additional powers to notify the persons who shall obtain prior permission, the
area where foreign contribution shall be accepted and utilised, the purpose for which foreign contribution shall be
utilised and the source from which foreign contribution shall be accepted with its prior permission.

Delhi High Court Order (21st January): The Delhi High Court has directed the government to remove the
freeze on the IDBI Bank account of Greenpeace India, which has foreign contribution of Rs 1.87 crore from
Greenpeace International. The court observed that the government had not brought any evidence on record to
support its action of freezing the account.
NGOs are entitled to have their viewpoints, said the court, adding that the NGO cannot be accused of acting
against national interest merely because its views do not match the governments viewpoint. The court also
noted that the directions to the bank to freeze the accounts were arbitrary as the government had not been able
to prove its stand. The court, however, said the government was free to take action against Greenpeace India in
future if it found violation of Foreign Contribution Regulation Act (FCRA) provisions. The court order came

January 2015

Page 40

during hearing of a petition filed by Greenpeace India, which alleged that the government had taken action
without any rhyme or reason and without complying with the provisions of FCRA.

Bifurcating top post in PSBs expected to bring in


transparency
The government has initiated management reforms in public sector banks by splitting the post of Chairman and
Managing Director in four banks and appointing managing directors (MDs)/chief executive officers (CEOs) in
Vijaya Bank, Indian Overseas Bank, United Bank of India and Oriental Bank of Commerce.
Combining the positions of Chairman and Managing Director with one person is contradictory to the effective
functioning of the organisation as the Chairman is the custodian of governance, while the MD/CEO is the
custodian of assets and efficiency of running of the organisation. When the same person holds both positions, it
leads to confusion and some time even to sacrifices. These are different roles, and so these positions must be
occupied by different individuals. The move to separate the posts would bring in more professionalism in their
functioning.

Xaxa Committee Report


The Report of the High Level Committee on Socio-Economic, Health and Educational Status of Tribal
Communities of India, under the chairmanship of sociologist Virginius Xaxa was circulated in December 2014.
Sixty per cent of the forest area in the country is in tribal area. Fifty-one of the 58 districts with forest cover
greater than 67 per cent are tribal districts. Three States Odisha, Chhattisgarh and Jharkhand account for 70
per cent of Indias coal reserves, 80 per cent of its high-grade iron ore, 60 per cent of its bauxite and almost 100
per cent of its chromite reserves.
Forty per cent of those displaced by dams are tribal peoples. A look at violent conflict, whether in Schedule V
States or in Schedule VI States, shows that the state is involved in all of these conflicts in some way or another.
Not surprisingly, the areas where these wars are being waged (with the state as party) are tribal areas with rich
mineral reserves.
The Armed Forces (Special Powers) Act guarantees impunity to state perpetrators of extrajudicial murder and
assault, and there are a large number of peaceful mass movements against the appropriation of tribal homelands
by the state and by corporations.
Recommendations of the committee are as follows:
Livelihood

Implement the Forest Rights Act 2006 in its true spirit and ensure community claim on community land,
forest and natural resources
Protection of bio-diversity rich mountains and forests (moratorium of mining in biodiversity rich
forest/zones)
Promote community ownership of resources for protection of forests and land. Indigenous community be paid
for the protection of forest carbon sink and water sources

January 2015

Page 41

Ensure community control and improve their skill for marketing of Minor Forest Produce (MFP)/NTFP as
one of the major and sustainable source of livelihood and economy for produce like mahua, sal, tamarind,
charo seed and different tubers and all other forest produces
Handicrafts, rural and community-based industries, and subsistence economy and traditional activities of the
people concerned, such as fishing, collection of MFP, shall be recognised as important in the maintenance of
their cultures and development. The government shall, with the participation of these people and whenever
appropriate, ensure that these activities are strengthened and promoted.
Ensure proper budgetary allocations and full utilisation of resources under the Tribal Sub Plan (TSP)
Use of renewable energy like solar and hydro through indigenous techniques
Traditional agricultural practices are an appropriate methodology to be adopted to identify and document the
practices followed by the farmers. This includes methods, techniques and tools used for identification of
traditional knowledge, crop production, soil management, water management, weed control, insect & pest
control, weather forecast, agricultural engineering and animal husbandry

Social/ community Governance

Implementation of Scheduled Area provisions (PESA) in true spirit


De-scheduling of schedule area due to decline of tribal population to be abolished. Declare all tribal populated
areas as scheduled areas
The Gram Sabha (village council) at the appropriate level should be the final authority for acquisition of land
in the scheduled areas for development projects
Capacitate tribal people to have planning and decision-making space in their local, social system as part of
democratic governance
Empower the Gram Sabha to prevent alienation of land in the scheduled areas and take appropriate action to
restore any unlawfully alienated land of an ST
Strict adherence must be enforced to the letter and spirit of the laws existing at Central and State levels
prohibiting the sale and transfer of tribal land to nontribal persons under cover of land acquisition for
developmental projects
Participatory planning, monitoring and evaluation to be undertaken through Gram Sabha based on local
knowledge and resources

Education
Admission is almost hundred percent in tribal areas but retention is still a question. High drop-out after 5th
standard is observed in all schools located in tribal villages. Lack of teachers, teachers absence and proxy
teachers system in primary schools located in tribal villages are common
MDM helps children come to schools regularly but children are engaged in collection of fuel wood and help in
cooking rather than reading in tribal schools. School campuses are used for security camps to house CRPF
personnel in all tribal areas. This diverts their attention towards CRPF and their arms and ammunition. This is a
complete violation of policy not to locate any security camp within one km of any school.
Language used for learning in schools not suitable for tribal children. Teachers are not familiar with tribal
language. High drop-out after matriculation leads to migration of young girls to cities like Delhi to work as maids
and young boys to work in the construction sector.

Community language to be given priority in the specific tribal area to deal with enrollment and drop-outs

January 2015

Page 42

Education to be oriented on skill training for promoting sustainable livelihood at local level and relevant to
the community
Strengthen facilities of Ashramshala schools
Special training programmes for teachers appointed in tribal areas to understand their culture, respect the
community and motivate them for school education
Continuous awareness campaign at family level for enrolling and continuing children in the Anganwadi and
school
Vocational training programme for tribal youths

Health
Indigenous community is known to practice herbal medicine and naturopathy since time immemorial. But today
this is being taken over by the rich urbanised society as the best treatment option and tribal people are being
systematically deprived from these sources due to corporatisation of herbal resources and medicinal plants.
A large proportion of adivasis are malnourished; know little about sanitation and have limited or no access to
hospitals. Consequently many become chronically ill. The social stigma attached to adivasis often result in medical
services never reaching their communities.

Protect and promote traditional herbal medicines through the community ownership
Train traditional healers with improved technology to ensure better healthcare in remote villages
Provide special attention to specific tribes for sickle cell disease
Institutional rehabilitation of physically and mentally challenged tribal children
Regular mobile health services for remotely located villages
Anganwadi for every tribal habitat.
Ensure adequate and nutritious food by encouraging kitchen gardens under special guardianship of
officer

Governance of tribal areas


The question of autonomy in scheduled areas has been set out in Schedules V and VI of the Constitution. In
Schedule V areas, the Tribes Advisory Council a body with elected and community representatives from
Scheduled Tribes will advise the governor on matters of administration and governance in scheduled areas.
Extensive review has shown that although governors are vested with enormous powers with respect to Schedule V
areas, they have been found uniformly tardy in the matter of submission of reports and in respecting the
constitutional guarantee of autonomy to tribal areas leading the High Level Committee to recommend the
setting up of a cell in order for the Governor to properly carry out the duties of the post vis--vis protection of the
tribes (emphasis added) with a whisper that this cell should not just turn into another bureaucratic institution
with little interest in tribal affairs.
The deliberations of the Tribes Advisory Councils have been found to be tokenistic, and the councils themselves
filled with bureaucrats and ministers instead of representatives of tribal communities with effective voice. Even
with the Autonomous Councils in the Schedule VI States, which have a more robust formal autonomy, the
committee finds that there is a huge discrepancy between the formal rules guaranteeing autonomy and the
informal workings of autonomy on the ground.

January 2015

Page 43

As a remedy, the committee recommends that Governors Cells be set up in all Schedule V States to assist the
Governor, although details about the functioning of such cells set up in Chhattisgarh, Jharkhand, Maharashtra
and Rajasthan are not yet known.

Net Neutrality
On December 24,2014 Indias biggest telecom operator Bharti Airtel Ltd announced that it would charge
customers for calls made using VoIP (Voice over Internet Protocol) but withdrew the proposal 5 days later. The
stated reason for the U-turn was that the telecom regulator was working on a consultation paper on the subject.
Net neutrality is the principle that Internet service providers and governments should treat all data on
the Internet equally, not discriminating or charging differentially by user, content, site, platform, application, type
of attached equipment, or mode of communication.
1.

All sites must be equally accessible: ISPs and telecom operators shouldnt block certain sites or apps just
because they dont pay them.
2. All sites must be accessible at the same speed (at an ISP level): This means no speeding up of certain
sites because of business deals. More importantly, it means no slowing down some sites.
3. The cost of access must be the same for all sites (per Kb/Mb or as per data plan)
There has been extensive debate about whether net neutrality should be required by law, particularly in the
United States. Advocates of net neutrality have raised concerns about the ability of broadband providers to use
their last mile infrastructure to block Internet applications and content (e.g. websites, services, and protocols),
and even to block out competitors.
Neutrality proponents claim that telecom companies seek to impose a tiered service model in order to control the
pipeline and thereby remove competition, create artificial scarcity, and oblige subscribers to buy their otherwise
uncompetitive services. Many believe net neutrality to be primarily important as a preservation of current
freedoms.
Net neutrality has enabled a level playing field on the internet. To start a website, you don't need lot of money or
connections. Just host your website and you are good to go. If your service is good, it will find favour with web
users. This has led to creation Google, Facebook, Twitter and countless other services. All of these services had
very humble beginnings. They started as a basic websites with modest resources. But they succeeded because net
neutrality allowed web users to access these websites in an easy and unhindered way.
If there is no net neutrality, ISPs will have the power (and inclination) to shape internet traffic so that they can
derive extra benefit from it. For example, several ISPs believe that they should be allowed to charge companies for
services like YouTube and Netflix because these services consume more bandwidth compared to a normal website.
Basically, these ISPs want a share in the money that YouTube or Netflix make.
Lack of net neutrality, will also spell doom for innovation on the web. It is possible that ISPs will charge web
companies to enable faster access to their websites. Those who don't pay may see that their websites will open
slowly. This means bigger companies like Google will be able to pay more to make access to Youtube or Google+
faster for web users but a startup that wants to create a different and better video hosting site may not be able to
do that.

January 2015

Page 44

The Telecom Regulatory Authority of India chief has said even though Airtels move is against net neutrality it is
not illegal as there is no legal framework. The net neutrality debate becomes even more relevant in case of India
where the penetration of smart phones is increasing and efforts are on to bring more people to the Internet,
through the digital India campaign of Prime Minister Narendra Modi.

This is how internet pack would look like in absence of net neutrality

The nub of the problem is this over-the-top services (OTT) like Skype, WhatsApp, Viber etc use data networks
of telecom firms like Airtel for their service and offer voice calls either cheap or almost free of cost. Initially
telecom firms thought this as a good means for them to drive traffic. However, the catch is that these services
cannibalise the telcos legacy voice and SMS revenue while consuming bandwidth. So, Airtels intent is to make
VOIP calls expensive and arrest the risk of loss of revenue and also to recover its cost of investment in networks.
So, the net neutrality debate boils down to telecom/Internet service providers, on the one end, and OTT providers
such as Skype, YouTube and Internet advocates, on the other side. The telecom/ISPs argue that they have made
huge investments in broadband capacity, and, therefore, they should be allowed to charge for the services, which
generate lot of traffic. For example, Airtel has invested over Rs.1,40,000 crore in the last 20 years. Preventing,
Airtel from charging for OTT services would mean that they would reduce their investments in building networks.
Airtels roll-back is only temporary as its statement says that the firm decided not to go ahead with its plan of
charging for VoIP on reports that TRAI is coming out with consultative paper on services offered by over-the-top
players such as Skype, WhatsApp, Viber etc. Airtel said it is hoping for a balanced outcome, which is critical for
the viability of the sector. So, now the ball is TRAIs court.

Jamsetji Nusserwanji Tatas 175th birth anniversary


Prime Minister Narendra Modi has decided to honour Tata Group founder Jamsetji
Nusserwanji Tata by releasing commemorative coins to mark his 175th birth
anniversary.
The coins, a first for an industrialist, are being minted on the instructions of the
Prime Ministers Office with an eye to enthuse Indian businesses for Modis Make in
India campaign.
Jamsetji was chosen by the Modi government because he is regarded as the father

January 2015

Page 45

of the Indian industry for setting in motion what became Asias first integrated steel company, despite the hostile
investment environment of a colonised India and his own failing health.
So far, coins have only been minted in honour of the freedom struggle, freedom fighters, events, scientists,
temples, institutions and organisations.
Born on March 3, 1839 in Navsari (then part of the princely state of Baroda), Jamsetji was the first businessman
in a family of Parsi Zoroastrian priests. Besides setting up a hotel, he initiated an iron and steel company, a worldclass learning institution and a hydroelectric plant.
Only the hotel Taj Mahal in Mumbai became a reality during his lifetime. Tata Iron and Steel Company Ltd
(now Tata Steel) came into being in 1907, three years after his death in May 1904, and is ranked among the
worlds top steel companies.
The Indian Institute of Science at Bangalore and Tata Hydroelectric Power Supply Company were set up by his
successors to establish his planned Tata Group, now Indias biggest conglomerate company.

Vibrant Gujarat Summit


For the first time in its 10-year history, the Vibrant Gujarat Summit
2015 was used as a stage for business-related diplomacy with the
U.S. Secretary of State John Kerry and U.N. Secretary General Ban
Ki moon attending the event. Prime Minister Narendra Modi made a
strong pitch for investment in India before global investors at the
Vibrant Gujarat Summit.
In a bid to woo investors, Mr. Modi cited the Centres recent
decisions to invite foreign investment in Railways, Defence and
Insurance. Referring to the governments ordinance to amend the
Land Acquisition, Rehabilitation and Resettlement Act, 2013, he said, We have amended the legal provisions to
facilitate the availability of land. This has been done for ensuring development in remote areas while ensuring
better returns to the farming community.
Projecting India as a 3D investment destination, Mr. Modi said the country had democracy, demography and
demand. Moreover, India has low cost and high quality manpower.
World Bank president Jim Yong Kim praised Mr. Modi for the Constitution Amendment Bill for Goods & Services
Tax (GST) and for his steps to ease diesel subsidies that had been a drag on Indias growth and harmed the
environment.
In another development, Defence Minister Manohar Parrikar said the Centre would bring out a document on
sustainable model of defence manufacturing and production in 2-3 months. He called for a complete overhaul in
conceptualising and thinking about defence manufacturing and procurement.
U.N. Secretary-General Ban Ki-moon praised Indias ingenuity and cutting-edge technology while dedicating
Gujarats second canal-top 10-MW solar power project to the nation. The new 10-MW megawatt project is on 3.6
km of the Vadodara branch canal of the Sardar Sarovar Project which passes through the city. It saves land and
also prevents evaporation losses. There are nearly 35,000 solar panels and the power generated is fed into the
State grid and also to operate pumping stations on the canal.

January 2015

Page 46

The total cost of this project is $18.3 million and is financed by the State government. It was commissioned in
November 2014. The Sardar Sarovar Narmada Nigam is likely to expand this project and even encourage private
entrepreneurs. Adani Enterprises and US-based SunEdison will invest about Rs. 25,000 crore to set up a solar
park in Gujarat that will create 20,000 new jobs.

Sterilization Deaths
Following massive protests over the death of 13 women who underwent the sterilisation procedure of tubectomy
in Bilaspur district of Chhattisgarh last November, the Ministry of Health and Family Welfare has written to all
States reminding them that every person should be counselled about the different family planning options
available.
In order to achieve the annual targets, the government recently increased the compensation given to women/men,
motivators (Accredited Social Health Activists) and doctors. The revised incentive given to motivators is Rs.200
for tubectomy and Rs.300 for vasectomy, the amount is as high as Rs.1,000 for a permanent limiting method
(tubectomy or vasectomy) in the case of couples after up to two children. The higher incentive earmarked for
permanent limiting methods is one of the reasons why more women will now end up on the operating table.
The government recently added a new component post-partum sterilisation done soon after or within seven
days of delivery. This approach works to the governments advantage as more women are opting for institutional
delivery to avail of the cash incentive earmarked for it.
Sterilisation is the most prevalent form of contraception in the country,
constituting nearly 75 per cent of the total cases. The proportion of
tubectomies to total sterilisations has been around 95 per cent since 2005;
nearly 4.5 million tubectomies have been performed each year since 2000.
How sterilization of women is done?
Sterilization is a form of birth control. All sterilization procedures are
meant to be permanent. During a sterilization procedure, a health care
provider closes or blocks a woman's fallopian tubes. Closing the tubes can
be done in several ways. One way is by tying and cutting the tubes this is
called tubal ligation. The fallopian tubes also can be sealed using an
instrument with an electrical current. They also can be closed with clips,
clamps, or rings. Sometimes, a small piece of the tube is removed.
Sometimes, tiny inserts are put in the tubes. Tissue grows around them and
blocks the tubes.
How does Sterilization work?
Eggs are made in a woman's ovaries. One egg is released each month. It
passes through one of the fallopian tubes toward the uterus. Sterilization
blocks each tube. Pregnancy cannot happen if sperm cannot reach the egg.
In India the incision procedure is mostly used. The incision procedure can
be performed in outpatient surgical clinics. It usually takes 2030 minutes.
Very little scarring occurs. Women often go home the same day.

January 2015

Page 47

The complications that can occur during or after these procedures include bleeding, infection, reaction to the
anesthetic. Death resulting from sterilization is extremely rare and is usually caused by a reaction to general
anesthesia.

Educational qualification for contesting local body


elections
The Supreme Court has said it will not interfere with the election schedule for local bodies in Rajasthan, asking
petitioners who had challenged an ordinance of the state government, to move the high court instead.
The controversial ordinance, issued on December 19 last year, makes it mandatory for candidates
contesting elections to local bodies like zila parishad and panchayat samitis to have at least passed Class 10 and
for those contesting for sarpanch seats, to have passed Class 8.
Critics say that the ordinance goes against the very tenet of the 73rd Constitutional amendment, which provided
for local self-governance in rural areas. The Constitutional amendment, passed by the Parliament and ratified by
state legislatures, did not moot any sort of educational qualification to be eligible to contest elections and instead
provided reservation for marginalised social groups such as Dalits and women to ensure their participation in the
political process.
There is merit in the argument that a public official should be able to understand the documents she/he is
handling. However this understanding is related to literacy (the ability to read and write with understanding) and
not some arbitrarily defined standards of educational attainment. Even if one were to accept the argument for
literacy, the government should have put this into effect from the next panchayat elections since mere literacy in
rural Rajasthan is abysmally low: 61 per cent overall and 45 per cent for women (census 2011). The notice period
would have given interested persons an opportunity to enroll and educate themselves.
Although the ordinance may be constitutionally valid as the facts are analogous to the reasoning of the Supreme
Court in Javed (2003), it is at the level of policy that the law is weak. In Javed, the Supreme Court upheld the
constitutionality of a provision that stipulated that no person who has more than two children could be elected as
the sarpanch or panch of a panchayat. A similar reasoning may be applied in the case of this ordinance as well.

Voting rights for NRIs


Parliament passed the Representation of the People (Amendment) Act in 2010 to introduce Section 20A that
enables a person who is a citizen of India, and is away from her ordinary residence in India for employment,
education or other reasons, to be eligible to be registered as a voter in the constituency mentioned in her Indian
passport: before that amendment, only ordinary residents could cast their vote.
Although the 2010 amendment intended to include NRI participation in national politics, Section 20A had
required NRIs to be physically present in their respective constituencies at the time of elections. Making it
impractical for voters, this requirement defeated the intention of the legislature. A petition was filed in the
Supreme Court praying that Section 20A of the Act be read down so as to allow NRIs to vote from abroad without
having to be present in India.

January 2015

Page 48

The petition argued that the provision was in violation of Article 14 of the Constitution to the extent that it implied
treating persons on a different footing based on economic classifications. The Supreme Court and the government
agreed with this contention without hesitation. Non-resident Indians (NRIs) will soon be able to cast their vote
through electronic-ballots or through their nominees residing in India.
The Union government informed the Supreme Court that it had accepted Election Commission's recommendation
to allow NRIs to vote through e-ballot system or through proxy. The EC discarded other possibilities - postal ballot
and internet voting - terming them fraught with the danger of manipulation.
Describing the e-ballot procedure, the EC committee said the NRI wishing to vote through this procedure would
have to send an application either electronically or physically to the returning officer six months before the expiry
of the term of the House.
"The RO may then verify the particulars of the person and at the time of election, on satisfaction, send the postal
ballot electronically after the same is finalized on the last date of withdrawal of candidature, which the NRI elector
can access through a password that would be allotted to him. The elector downloads the postal ballot paper and
then casts vote and posts is back to the RO after getting the declaration attested," it said.

MMDR Amendment Ordinance, 2015


The government has promulgated an ordinance amending the Mines and Minerals (Development & Regulation)
(MMDR) Act, 1957, the MMDR Amendment Ordinance, 2015 to allow auction policy in grant of mining leases for
both bulk minerals and notified minerals. Earlier, prior approval of the Central government was required for
notified minerals in First Schedule, such as iron ore, manganese, bauxite, copper, gold.
This ordinance amends the 1957 Act to allow grant of mines and prospecting license-cum mining lease through a
policy of auctions. Further, it will allow for the holder of a mining lease or of a prospecting license-cum-mining
lease to transfer mining lease or the prospecting license-cum-mining lease, to any person eligible to hold such
mining lease.
To attract private investment and modern technology in mining, it will be possible to transfer mining leases and
prospecting-cum-mining leases awarded through auction by the approval of State government. Where the State
government does not convey any decision in 90 days in this regard, it will be taken as deemed approval, noted the
Ministry of Mines.
The ordinance grants longer tenures over mines, increasing the period from 30 years to 50 years. The ordinance
removes the concept of renewal of leases and after the end of the lease period, leases will be auctioned. Other than
royalty, leaseholder will pay an additional amount to a District Mineral Foundation (DMF). This fund is to be used
for the benefit of people and areas affected by mining activities. There is a provision for contribution to the DMF
not exceeding one-third of the royalty rate in the respective minerals.
The ordinance proposes a National Mineral Exploration Trust for which leaseholders will be required to
contribute two percent of royalty. To deter illegal mining, the punishment has been increased to imprisonment
upto five years, or a fine of Rs 5 lakh per hectare or both. Further, it provides for the State governments to
constitute Special Courts for trial of offences of illegal mining.

January 2015

Page 49

Armed Forces facing a fund shortage


A fund crunch always hits hard but when it comes to the second largest army in the world that is in the midst of
one its biggest-ever expansions and placed in a hostile neighbourhood, things can take a serious turn. The Indian
Army is stretched too thin-wartime reserves are at a low, and in tune with a general reduction in spending by the
government due to low revenue generation, its meagre modernisation budget too has been substantially cut this
year.
However, the situation is not entirely new-year after year, especially during UPA II, the land force was perceived
to be getting a raw deal at the expense of a thrust to the air force. Things, however, are at a precarious edge now
with the army progressively adding 88,000 new troops to its ranks to build a mountain strike corps to boost its
defence on the China border, without a commensurate increase in budgetary allocation.
The fear is that the army may be in a tough spot-beefed up in numbers but poorly equipped as modernisation
plans have remained frozen. At the very core is the manner in which new battalions and units have been raised
over the past few years. In order to meet timelines, all raisings of the new mountain strike corps have been done
by cannibalising existing units, taking apart ammunition, arms and supporting infrastructure such as vehicles and
bulletproof jackets that are reserved for use in times of war. Put in technical terms, the army has over the past four
years dipped into its war wastage reserve (WWR) to support new battalions along the China border.
While this practice in itself is not new-traditionally new raisings have been carried out in a similar manner-the
problem is that the army has not been getting replenishments and its budget allocation has remained almost
static, barely matching up to inflation rates. The addition of 88,000 troops is technically coming without a
proportional increase in arms, infrastructure or ammunition holdings.
Frustrated by repeatedly making its case for much-needed funds for the new raisings with the previous
government, the army HQ has now made a new roadmap and a call for attention with the new dispensation (see
box). The grouse is simple. The UPA notionally allotted Rs.5,000 crore for setting up new corps. However, this
allotment was adjusted from within the existing budget of the army. Army HQ has now requested a one-time,
special infusion of funds (Rs.5,000 crore) to make up for deficiencies, which the Narendra Modi-led government
is considering. A list of seven priority areas for modernisation has also been drawn up by the army. These
priorities include procurement of new artillery guns (not a single new gun has been purchased in almost three
decades),
induction
of
light
choppers for the aviation corps,
upgradation of tanks and armoured
carriers with night vision device and
procurement of a new assault rifle
for soldiers.
Senior defence analyst Brigadier
(retd) Gurmeet Kanwal says that
depletion of war reserves will
undoubtedly
hit
preparedness.
"Ideally, ammunition for new
raisings should be bought fresh but
since that has not happened,
reserves that are earmarked for war
have been depleted. This is bound to
dent the overall combat capability of

January 2015

Page 50

the force due to the stretching involved in new raisings," he says.


While there has been little debate on the expansion of the world's second largest standing army at a time when all
major powers, including China a nd the US, are downsizing, army HQ feels that the new mountain strike corps is
central to its defences on the Eastern border.
In a session with members of the parliamentary standing committee on defence in September last year, Vice Chief
of Army Staff, Lt-Gen Philip Campose, was forthcoming on the need for augmenting force levels. "Our analysis of
the threat perception after 15 years predicted that the way it (China) has been getting more aggressive in resolving
its disputes with neighbours, especially, in view of what we have seen with its maritime disputes in the South
China Sea, it was our attempt to make sure that we are fully prepared to deal with this threat if at any time (China)
decides to raise the ante and get more aggressive," Lt-Gen Campose said. In the same session, however, the Vice
Chief admitted that to meet the "fast time frame", the army used up some of its reserves.
This additional "burden" on the resources of the army comes as a big blow as far as financial planning is
concerned, given that its revenue to capital budget ratio is seriously lopsided. From its annual allocation of funds,
the Army barely got 22 per cent this year for capital expenditure -to buy new arms and equipment for its soldiers.
Even this allocation of Rs.20,900 crore this year has now been further cut down by Rs.4,500 crore (over 20 per
cent) as the government struggles to meet its expenses.
Even within the 78 per cent block of money that goes into the revenue head, pays and allowances of the officers
and staff eat up a major part of it, leaving spending on ammunition the only place where a cut is possible in case
the allocation is not sufficient. "More than 60 per cent of the revenue allocation of the army is consumed in pay
and allowances. The amount left is inadequate for meeting the requirement under other budget heads such as the
expenditure on clothing, ration and fuel. Consequently, the burden of inadequate allocation gets passed on to the
areas where paucity of funds would not trigger any immediate crisis-procurement of ammunition being one such
area," Amit Cowshish, former financial adviser (acquisition), Ministry of Defence, mentioned in a paper for the
Institute for Defence Studies and Analyses.
A lopsided budget means that the army has little left to invest in new technology. To correct this, the army has
suggested that the government consider shoring up the nation's spending on defence from the current all-time low
of 1.7 per cent of the GDP. In a presentation to Indian lawmakers, the army has projected a gradual increase in
defence spending to 3 per cent. This will not only cater to the major modernisation deficiencies in the system but
will also be on a par with the spending done by most other major nations. "To fight a war on two fronts, an
allocation of at least 2.5 per cent is needed," says Kanwal.
The government's test on delivering for the army will come very soon as it makes allocations for defence spending
in the next financial year. The army remains positive that at least the start of a course correction will be visible in
this year's budget.

January 2015

Page 51

Rise of the Lone Wolf


In the brief history of terrorism in India, Munawad Salman, Shah Mudassir, Shoeb Ahmed Khan, Areeb Majeed
and their friends represent a new generation of wannabe extremists. They may be children of the digital era but
they too have grievances, genuine or perceived, and crave to give violent expression to them. They are aware,
connected and much more skilled and educated than a conventional terrorist and are in a hurry to execute their
sinister goals. They will not wait for a terror group to spot and train them. They will find the group or mentor of
their choice, establish contact
online and figure out what they
need to learn to unleash mayhem,
even willing to travel to the world's
most dangerous terror hotspotsAfghanistan, Pakistan, Iraq, Syriato acquire the skills they think they
need.

Security agencies and terror experts


have more than one tag for them"lone wolf/wolves" is a favourite
and has gained momentum in the
aftermath of the Sydney cafe attack
and the Charlie Hebdo carnage in
Paris. Some agencies also liken
these heinous acts to a loose,
franchise model of terror while
others prefer to describe it as "retail
terror" or "freelance terrorism".
The nomenclature may vary but
there is unanimity about the fact that the ogre of terrorism has mutated and spawned a new model- one that is
centred around making spectacular impact for the perceived larger cause than identifying with the niche ideology
of an organisation and living and acting by its rules.
"The implications of this shift to freelance terrorism are profound," Professor Azeem Ibrahim, a research fellow at
the International Security Program, Kennedy School of Government at Harvard University, had written way back
in 2008, when the West had begun to get a whiff of the trend. "Freelance radicals can move across borders easily,
disband and regroup at will and can be coordinated remotely. Inspiration and know-how can be disseminated,
and plans formed, online between radicals who need not even have met. But the crucial difference is that any
given terrorist can be replaced with another. That means any terrorist group cannot be conclusively defeated."
Although India woke up to this new threat in the last year or so, an Indian connection to the trend, and a serious
one at that, was traced a year before Ibrahim's chilling warning.

January 2015

Page 52

January 2015

Page 53

Gaps in our anti-terror approach


In the cat-and-mouse chase between the law enforcer and terrorist, the freelance radical poses a serious policing
challenge. In many ways, this new terror species is an effective option for terror operators to do the job from a
distance, escaping notice while making an equal impact with lesser risk. This is important for the merchants of
terror, who find it difficult to operate in an environment where every country is working to raise the cost of
carrying out a terror attack by setting up specialised police forces backed by strong, arguably intrusive, anti-terror
laws.
That's why, despite having a well-organised outfit like the Lashkar-e-Taiba (LeT) in its control, the Inter-Services
Intelligence (ISI) needed a David Coleman Headley, very much a freelancer looking to do something spectacular,
for scoping the 26/11 targets in Mumbai. And while Indian forces accounted for the last terrorist in Mumbai, it
was Headley's arrest that eventually bared the plot.
It's this 'miss' that led to the creation of a Multi-Agency Centre (MAC) at the Intelligence Bureau headquarters for
real-time intelligence sharing, forced India to revamp its immigration tracking system and work on overcoming
obstacles posed by the federal character of law enforcement in the country.
With an increasing number of freelance radicals-turned-terrorists surfacing over the years, the worry among
authorities is that they get to know of them only when an incident has occurred or is just about to occur. For
instance, not until the Patna blasts did security agencies realise that a new offshoot of SIMI had emerged on the
scene.

January 2015

Page 54

The policing challenge, therefore, is to find a way to intercept these attacks earlier. And that's where the focus has
turned to over the past year or so, prompting a proactive approach to counter the radical before he becomes a
terrorist. Some measures being taken to stop terrorism in the country:
Internet monitoring and building a counter narrative - The aim here is to put out alternative material to
jihadi propaganda, enter their chat rooms and counter ideological arguments while also tracing other participants.
Agencies such as the National Technical Research Organisation, Computer Emergency Response Team and
Department of Electronics and Information Technology are building capacity to populate cyberspace effectively
for this purpose. Terror groups such as ISIS and al Qaeda are also up to the game, developing capabilities to
deface government websites and hacking into their systems.
Overcoming sovereignty hurdles - Internet giants such as Google and Yahoo are being convinced to set up
their servers in India. One of the biggest hurdles that Indian investigators face in terror probes is that they have to
rely on longdrawn legal processes such as obtaining letters rogatory (LR) from courts to get information from
these companies whose head offices are located abroad. This is still a slow-moving exercise and the call now is to
use diplomatic clout with like-minded foreign governments to obtain cooperation.
Minority outreach - States are being asked to get their police organisations to develop stronger contacts within
the minority communities. Intelligence agencies admit that their ground knowledge on this front has deteriorated
and that's why confidence-building measures are being thought of. The first step in this direction is to not frame
innocent Muslim youths in terror attacks. The National Investigation Agency (NIA), in particular, has been
mindful of that, but gains can be frittered away if agencies are used for political purposes.
Technology upgrade - Maintaining databases of suspects, their voice samples, ability to correlate information
with agencies of friendly countries are the kind of upgrades in the pipeline. Home ministry officials say security
agencies in the West are able to track profiles much faster because of more efficient and flexible database
management like identifying individuals from just their voice in ISIS videos. In India, a Yasin Bhatkal kept Indian
agencies at bay, carrying out attacks at will for over seven years.
Reinventing beat policing - This is a subject that is getting considerable government attention with training
being refocused on getting beat constables to develop personal relationships in neighbourhoods so that citizens
volunteer information with ease. At a different level, an all-India phone number is being developed by the home
ministry for citizens to call with information on terror.

Operation Chakravyuh
The latest counterintelligence programme of Indian intelligence agencies has been codenamed 'Operation
Chakravyuh'. It's an initiative still in the developing stages but an idea whose time has come.
So what is Operation Chakravyuh? As a member of a counterintelligence agency explained, officers create
accounts with assumed identities of jihadi groups and get on Facebook, Yahoo or other chat platforms to lure
youths influenced by online propaganda. Following initial discussions, those interested and intent on carrying out
jihad are either taken to a separate chat room or asked to develop one-on-one contact through email.
Once the grain is separated from the chaff, the job for the counterintelligence experts is to ferret out the real
identity, verify details, and put the suspects under surveillance.
That is how nearly 120 youths have been identified in the last six months-all of them willing to join ISIS, a
counterintelligence official said. But unable to take action, agencies have merely put them on watch for now.

January 2015

Page 55

While the misuse of Twitter by alleged ISIS sympathisers such as Mehdi Masroor Biswas, the Bangalore-based
engineer arrested in December last year, may have opened a can of worms labelled 'online radicalisation' for most
people, the Ministry of Home Affairs (MHA) has trained its guns on such cases for a while. As the next course, and
the logical corollary of the work done by Operation Chakravyuh in monitoring and identifying radicalised youth,
the MHA's internal security division has been asked to prepare a national programme where the primary thrust
will be to counter pro-jihad propaganda material available on the internet.
The nascent idea was thrashed out in detail during the annual DGPs' conference in Guwahati in November last
year, where the Intelligence Bureau (IB) made a detailed presentation on the need for counter-radicalisation and
de-radicalisation programmes. Police chiefs unanimously agreed on the need to develop greater capability to
monitor cyberspace and the significance of building a counter-narrative and propagating it on the internet to
dissuade gullible, marginalised youth.

January 2015

Page 56

Freedom of speech and expression


How free are Indians to express themselves?
Article 19(1)(a) of the Constitution makes the right to freedom of speech and expression a fundamental right.
But it is not an absolute right; there are qualifiers.
What are those qualifiers?
The First Amendment to the Constitution, made on June 18, 1951, states that interests of the sovereignty and
integrity of India, the security of the state, friendly relations with Foreign States, public order, decency or morality
or in relation to contempt of court, defamation or incitement to an offence will be paramount and freedom of
expression will not be unconditional.
How does the constitutional position get reflected in laws?
The Indian Penal Code has several clauses that make it contingent upon the person expressing himself or herself
not to hurt sentiments or cause public discord, something that is open to interpretation.
Section 153A: Deals with words, spoken or written, or representations that promote disharmony and feelings of
enmity, hatred or ill-will between groups. The penalty is 3 years in jail and/or fine.
Section 292: Makes obscene publications (book, paper, pamphlet, writing, drawing, painting, representation,
figure or any object) an offence. The penalty is 2 years (first conviction) or 5 years (second conviction), and/or
fine.
Section 295A: Criminalises deliberate and malicious acts, intended to outrage religious feelings, including
words, signs, visible representations; entails 3 years and/or fine.
Section 298: Penalises the utterance of words that might hurt the religious feelings of any person; the penalty
is 1 year and/or fine.
There are other laws including the Indecent Representation of Women (Prohibition) Act of 1986, and
the SC and ST (Prevention of Atrocities) Act enacted to protect specific sections from representations and
speech which they find offensive or which mocks or insults them.
How does the law address new, technology-enabled forms of expressing oneself?
The IT Act of 2000 has been the subject of much debate. Its Section 66A defines the punishment for sending
offensive messages through a computer or any other communication device such as a mobile phone or a tablet, a
conviction fetching a maximum of three years in jail and a fine. What is offensive, however, is subject to
interpretation. The Supreme Court has been looking at the sections constitutional validity for nearly a year now
and said last month that it lacks clarity and is open to misuse.
Cases under this recently include the arrest of two girls by Thane police in 2012 over a Facebook post, the arrest of
Jadavpur University professor Ambikesh Mahapatra for forwarding a caricature on Mamata Banerjee on
Facebook, and the arrest of Aseem Trivedi for drawing cartoons lampooning Parliament and the Constitution to
depict their ineffectiveness.

January 2015

Page 57

Some examples of controversies:


Salman Rushdie: His book The Satanic Verses was banned in 1988, and he was denied a visa for a number
of years.
James Laine: Mobs vandalised the Bhandarkar Library to protest his characterisation of Shivaji.
M F Husain: His paintings were often difficult to display because of the protests they generated.
Wendy Doniger: Her books on Hinduism were not banned but publishers were convinced to withdraw and pulp
these.

Chief and members


interference

of

CBFC

resign

alleging

Leela Samson, who headed the Central Board of Film Certification (CBFC), a statutory body under the
information and broadcasting ministry, since 2011, resigned amid controversy surrounding the overnight
clearance of controversial film Messenger of God featuring Dera Saccha Sauda chief Gurmeet Ram Rahim
Singh. The censor board had referred the issue of clearance to Messenger of God to Film Certification Appellate
Tribunal (FCAT).
Asked why she decided to quit, Samson did not specifically refer to the reported clearance to the film but cited
alleged interference, coercion and corruption of panel members and officers of the organisation who are
appointed by the ministry as reasons. However, the government, which runs the censorship and appeals process,
did not interfere, said Rajyavardhan Rathore, minister of state for information and broadcasting.
According to Samson, "...having to manage an organization whose Board has not met for over nine months as the
ministry had no funds to permit the meeting of members."
She said the term of all the members and the chairperson of the Censor Board "are over. But since the new
government failed to appoint a new Board and Chairperson, a few were given extension and asked to carry on till
the procedure was completed."
"However, recent cases of interference in the working of the CBFC by the ministry, through an 'additional charge'
CEO, and corrupt panel members has caused a degradation of those values that the members of this board of
CBFC and Chairperson stood for," Samson alleged.
A day after Censor Board chief Leela Samson quit over clearance to controversial film Messenger of God, the
government denied any interference in the board's functioning.
"There was no government interference in clearing the film Messenger of God", minister of state for Information
and Broadcasting, Rajyavardhan Rathore told reporters. Hitting out at Samson, Rathore said, "The Censor Board
is an independent body, it needs to behave like one." He also said that the decision of the Film Certification
Appellate Tribunal (FCAT) over the film should be final and accepted by all.
Central Board of Film Certification (CBFC)
It is a statutory body under Ministry of Information and Broadcasting, regulating the public exhibition of films
under the provisions of the Cinematograph Act 1952. Films can be publicly exhibited in India only after they
have been certified by the Central Board of Film Certification.

January 2015

Page 58

The Board consists of non-official members and a


Chairman (all of whom are appointed by Central
Government) and functions with headquarters at Mumbai.
It has nine Regional offices, one each at Mumbai, Kolkata,
Chennai, Bangalore, Thiruvananthapuram, Hyderabad,
New Delhi, Cuttack and Guwahati. The Regional Offices
are assisted in the examination of films by Advisory
Panels. The members of the panels are nominated by
Central Government by drawing people from different
walks of life for a period of 2 years.
The Film Certification Appellate Tribunal (FCAT)
is a statutory body, constituted vide Section 5D of the
Cinematograph Act, 1952, under the Ministry of
Information and Broadcasting. The Tribunal hears the appeals filed under Section 5C of the Act under which any
applicant for a certificate in respect of a film who is aggrieved by an order of the Central Board of Film
Certification (CBFC), can file an appeal before the Tribunal. The Tribunal has its headquarters in New Delhi. The
Tribunal has a Secretary to look after its day to day affairs.
Under what categories are films certified?
Films are certified under one of four categories: U (Unrestricted), UA (Unrestricted, but with caution that
parental discretion is required for children under age 12), A (Adult) and S (Only for a special class of persons).
Who is part of the CBFC?
The Board is headed by a chairperson, and has between 12 and 25 non-official members. All are appointed by the
central government for tenure of three years. Members of the Board are eminent persons in different walks of life,
such as the social sciences, law, education, arts or films, and must represent a cross-section of society.
Do these members certify or censor films?
No. That is done by one of the nine regional offices of the Board. The biggest regional office is in Mumbai, which
examines the largest number of films, including most Bollywood films.
How does certification happen?
Once a film is submitted to the regional officer at the regional centre, and after all relevant material, fees etc. have
been received, the regional officer forms an examining committee to view the film. Many films are cleared with
or without deletions or modifications at this stage itself. In case an applicant is not satisfied with the panels
decision, the film goes to a revising committee. This is where the Board members come in.
What does this committee do?
All members record their verdict, and the committee decides by majority vote. If the chairperson does not agree
with the majority view, he/she may direct another revising committee to see the film.
What happens then?
If the final decision includes making cuts to the film, the applicant must do so and re-submit the film. The
applicant gets the opportunity to present his views before the examining committee or the revising committee. If
the applicant is not satisfied with the CBFCs order, he/she can appeal to the Film Certification Appellate Tribunal
(FCAT) in Delhi, which is headed by a retired judge.

January 2015

Page 59

Katchatheevu
It is an uninhabited island administered by Sri Lanka. The island originated from a volcanic eruption that
occurred in the 14th century. The island was historically part of the Ramnad Rajas zamindari and later it became
part of the Madras Presidency. The island has special significance for fishing operations in the area. Around 1921,
Sri Lanka started claiming territorial rights over the island without any justification. Ownership of the island was
controversial up until 1974 as during British Rule this island
was administered by both countries.
An agreement was signed between India and Sri Lanka in 1974
to settle the dispute over the island. The exact statement of the
1974 agreement (Maritime boundary in Palk Strait) was, "Each
country shall have sovereignty and exclusive jurisdiction and
control over the waters, the islands, the continental shelf,
falling on its own side of boundary. The vessels of Sri Lanka and
India will enjoy in each other's waters such rights as they have
traditionally enjoyed therein". There was an apparent
ambiguity in this statement, because the two countries interpret
the the phrase "traditional rights" differently. Tamil Nadu
claims that traditional rights include fishing while Sri Lanka
claims it doesn't.

Subsequently, there was another agreement in 1976 (to determine boundary line in Gulf of Mannar), which in no
way helped resolve the issue because it did not address the ambiguity in the previous agreement. This agreement
drew borderline in Mannar area and 'indirectly' established that Katchatheevu belonged to Srilanka. Also during
the time of this agreement, there was no state government in Tamil Nadu because Indira Gandhi had imposed
president rule in the states of Gujarat, Tamil Nadu, etc.
In the recent years (after end of Sri Lankan civil war) there have been numerous cases of Indian fishermen being
arrested or shot at by the Sri Lankan navy. Political parties in Tamil Nadu are demanding that India take back
the island from Sri Lanka to protect the rights of Tamil fishermen.
In June 2011, the new Tamil Nadu government led by Jayalalithaa filed a petition in Supreme Court seeking the
declaration of the 1974 and 1976 agreements between India and Sri Lanka on ceding of Katchatheevu to Sri Lanka
as unconstitutional. The court ruled in Berubari case that cession of Indian territory to another country has to be
ratified by the parliament through an amendment of the constitution. Katchatheevu was ceded to Sri Lanka in
violation to the court under the 1974 and 1976 agreements without the approval of two Houses of Parliament.
However, the Indian government has stated that No territory belonging to India was ceded nor sovereignty
relinquished since the area was in dispute and had never been demarcated and that the dispute on the status of
the island was settled in 1974 by an agreement and both countries took into account historical evidence and legal
aspects.

January 2015

Page 60

Latest Develoment
In an unusual move, the Union of India has sought to distance itself from petitions filed by two former chief
ministers of Tamil Nadu J Jayalalithaa and M Karunanidhi who have sought the Indian government to
retrieve the controversial Katchatheevu island from Sri Lanka.
In its applications filed in the Supreme Court, it has said the Union of India, through its Cabinet Secretary, was
not administratively concerned with the subject matter. Referring to the Government of India (Allocation of
Business) Rules, 1961, the applications asked the court to delete Union of India, through its Cabinet Secretary, as
a party in the case.
As the Respondent No. 1 (Union of India) is not concerned with the subject matter, it is not a necessary party,
and hence it is necessary to delete the names of Respondent No. 1 from the cause title, the applications read.
Should the court allow the request, the Ministry of External Affairs would remain the only party representing the
government.

MHRD directive to institutions over MoUs


In what could end up impinging upon the autonomy of higher educational institutions, the Human Resource
Development Ministry has proposed that while signing any Memorandum of Understanding (MoU) for
collaboration with foreign universities, Indian institutions must refer to the Ministry of External Affairs advisory
in context of national interest, as well as keep the MHRD informed.
This could, however, be completely contrary to Acts governing higher educational institutions like IITs, central
universities and NITs which give them the power to enter into academic collaborations with other educational
institutions, including foreign ones.
An internal note of the Department of Higher Education on the issue of consolidated instructions with regard to
collaboration with foreign universities for faculty exchange, research projects and other forms of MoUs states
that in order to have a uniform system that encourages global partnership within the framework of national
interest, it is important to be guided by the MEA with regard to nations with which collaboration can be sought.
In the case of faculty exchange programmes and research projects partnerships, higher education institutions
should always refer to general advisory about countries that the MEA may have in context of national interest. We
may request the MEA to provide this ministry regular updates for guidance of higher education institutions with
regard to partnership for faculty exchange and research projects with other countries. If the MEA advisory is
available on the website, higher education institutions can follow them and go ahead with such partnerships. They
shall keep the MHRD informed. Copies of MoUs may also be made available to the MHRD, it states.
The ministrys latest proposal is in tune with HRD Minister Smriti Iranis view. During a retreat of ViceChancellors of central universities in Chandigarh last year, presided over by Irani, the ministry had asked all VCs
to send MoUs signed by their universities during the last 20-25 years, within a period of one week.
This also comes at a time when there is a controversy brewing over IIT-Delhis MoU with the Mauritius Research
Council for setting up an International Institute of Technology Research Academy in Mauritius, with the ministry
claiming the MoU violates the IIT Act. The ministry has set up in inquiry into the MoU.

January 2015

Page 61

Interestingly, if finalised, this HRD ministrys proposal will revisit a ministry order of August 2004 which had
withdrawn previous guidelines that mandated central universities, deemed universities and state universities to
take permission of MHRD, UGC and concerned state governments for signing MoUs with foreign universities. The
guidelines were withdrawn with the ministry noting it was an unnecessary interference on the autonomy of
institutions.
While the MHRD may be trying to regulate MoUs signed by such institutions and universities, they are all
governed by different Acts which give them the freedom to collaborate with foreign universities as they deem fit.
For instance, the Central Universities Act, 2009, states that the universities can cooperate or collaborate or
associate with any other university or institution of higher learning, including those located outside the country, in
such manner and for such purposes as the university may determine.
The IIT Act too states that subject to the provision of this Act, every institute shall exercise the following powers
and perform the following duties, namely to cooperate with educational or other institutions in any part of the
world having objects wholly or partly similar to those of the Institute by exchange of teachers and scholars and
generally in such manner as may be conducive to their common objects. The NIT Act, 2007, reads similarly. State
universities, meanwhile, are governed by state Acts with most universities having their own Act. The ministry note
also says with regard to higher education institutions setting up campuses outside or facilitating setting up
campuses outside India, prior approval of the MoU by the MEA and MHRD shall be a mandatory requirement.
They cannot proceed ahead without clearances, it adds.

Decontrol of Urea
Having decontrolled petrol and diesel, the governments next focus is on containing fertiliser subsidies. Key to this
is decontrol of urea and ushering in a system of crediting subsidy payments directly into the bank accounts of
farmers.
Whats so special about urea decontrol?
Urea is the only fertiliser whose maximum retail price (MRP) is still fixed by the government, with imports
permitted only through designated state trading enterprises. Moreover, there is a significant domestic industry in
urea. In 2013-14, production at 22.72 million tonnes far exceeded imports of 7.09 Mt. This is unlike for other
fertilisers, where India is 100 per cent import-dependent either for the final product (muriate of potash or MOP)
or raw materials/intermediates (rock phosphate, sulphur and ammonia for manufacture of di-ammonium
phosphate or DAP).
What does decontrol entail?
Decontrol would mean allowing the MRP for urea to be market-determined, as it is with other fertilisers. Besides,
there will be no import restrictions. Anybody can import urea, not just MMTC, STC or Indian Potash Ltd.
The government has already, since April 2010, freed non-urea fertilisers from price controls, following which the
MRP of DAP has gone up from Rs 9,350 to around Rs 23,000 a tonne, and of MOP from Rs 4,455 to Rs 16,650.
During the same period, the MRP of urea has been raised only marginally from Rs 4,830 to Rs 5,360 a tonne. In
the event of price decontrol of urea, farmers would obviously end up paying much more for it as well.
The impact of decontrol on the industry would be mainly on account of imports. The landed price (cost plus
freight) of imported urea in India is currently about $300 a tonne, which is lower than the average of $322 in

January 2015

Page 62

2013-14 and $413 the year before. On the other hand, the average production cost for domestic plants is roughly
Rs 18,000 or $ 290 per tonne, ranging from a low of Rs 11,000 to as high as Rs 41,000. In a free import regime,
the high-cost units may face closure.
But why protect inefficient manufacturers? Also, if farmers are already paying more for other
fertilisers, would they not be able to absorb similar price rises in urea?
The second question first. Urea has a disproportionately high share over 55 per cent in Indias total fertiliser
consumption. A wheat farmer typically applies 2.5 bags (125 kg) of urea per acre over the full cropping period,
compared to just one bag (50 kg) of DAP and half a bag (25 kg) of MOP. He is, therefore, that much more sensitive
to an increase in theprice of urea. Also, the decontrol in other fertilisers happened at a time when minimum
support prices (MSP) were going up. Today, given falling global prices for agri-commodities, there isnt much
scope for MSP increases to compensate for costlier urea.
As regards inefficient urea plants, there are those whose costs are high only because they are using imported
liquefied natural gas (LNG) as feedstock. This is far more expensive, at $14-15 per MBTU, relative to the $5-6 for
domestically produced gas. But there are also units with very high energy consumption requirements, which
probably deserve to be shut down. The resultant production loss of 1.5-2 Mt can easily be covered by imports
without really pushing up prices.
What is the governments game plan?
Ideally, it would want to decontrol urea, which accounts for two-thirds of the annual fertiliser subsidy bill of Rs
100,000 crore-plus if one includes unpaid liabilities. But given the political costs involved, it is seeking to do this
over three years. This period should suffice for having systems in place to credit subsidy payments directly into the
Aadhaar-seeded bank accounts of every farmer based on proper identification and digitisation of land title
records.
How is this different from the existing nutrient-based subsidy (NBS) regime?
Under NBS, there is a fixed per-kg subsidy on each nutrient. Right now, it is, for example, Rs 20.875 for nitrogen
(N), Rs 18.679 for phosphorous (P) and Rs 15.5 for potash (K). Based on this, the subsidy payable on DAP (which
contains 18 per cent N and 46 per cent P) works out to Rs 12,350 a tonne, just as it is Rs 9,300 in the case of MOP.
But this subsidy is today paid not to the farmer, but to the manufacturer who is also free to set the MRP. Besides,
the NBS is not applicable on urea, whose MRP is fixed by the government.
In the proposed new NBS regime, the MRPs of all fertilisers, including urea, would be market-determined.
Further, the subsidy will be paid directly to the farmer. Currently, farmers buy urea mainly because it is the
cheapest fertiliser available. In a genuine NBS system, they would value urea basically for its high N (46 per cent)
content. Further, they may increasingly demand fertiliser products customised to their specific crop needs or soil
conditions, rather than blindly choosing urea or DAP.

January 2015

Page 63

Tejas

The HAL Tejas is a single-seat, single-engine, multi-role light fighter being developed by Hindustan Aeronautics
Limited for India. It is a tailless, compound delta wing design powered by a single engine. It came from the Light
Combat Aircraft (LCA) programme, which began in the 1980s to replace India's ageing MiG-21 fighters. Later,
the LCA was officially named "Tejas", meaning "Radiance" by the then Prime Minister Atal Bihari Vajpayee. It is
supersonic and highly manoeuvrable, and is the smallest and lightest in its class of contemporary combat aircraft.
The Tejas is the second supersonic fighter developed by Hindustan Aeronautics Limited (HAL) after the HAL
Marut. The Indian Air Force (IAF) was reported to have a requirement for 200 single-seat and 20 two-seat
conversion trainers, while the Indian Navy might order up to 40 single-seaters to replace its Sea Harrier FRS.51
and Harrier T.60.
The Tejas was cleared in January 2011 for use by Indian Air Force pilots. It received the second of three levels of
operational clearance on 20 December 2013. On 17 January 2015, the first Tejas LCA was officially inducted into
the IAF, with final operational clearance (FOC) expected by late 2015. The first Tejas squadron, to be based at
Bengaluru, is scheduled to enter service by 2017-2018.

Annual Status of Education Report


The 10th edition of the Annual Status of Education Report (ASER) by Pratham shows that over the last decade,
basic learning levels for children in elementary school in India have remained low. Only about half of Class V
children in rural India can read a simple Class II level text, and a similar proportion can do a two-digit subtraction
problem with borrowing. While there are some variations across states and a few exceptions from year to year, it
would not be wrong to say that at least half of all Indian children close to 100 million are at least two to three
years behind grade level. The biggest educational challenge facing the country, its policymakers, practitioners and
parents is: Are there proven, cost-effective and scalable interventions that can significantly improve basic
learning in our primary schools?

January 2015

Page 64

For the past decade, several players, government and non-government, have been working on improving the
situation. Pratham has also been developing models and methods to improve childrens basic reading and
arithmetic abilities. While several states are experimenting with innovative programmes aimed at improving
learning, few have been tested rigorously for impact and scalability in a government-run primary school system.
In the last decade, Prathams work has been rigorously evaluated by researchers affiliated with MITs Abdul Latif
Jameel Poverty Action Lab (J-PAL). These impact evaluations indicate that significant gains in learning outcomes
can be achieved by re-organising and grouping children by their learning level rather than the usual grouping by
age or standard.
This teaching at the right level model is straightforward and effective. The process focuses on children currently
enrolled in Classes III to V and starts by assessing children one-on-one using simple tools: Can they read a
paragraph? Simple everyday words? Letters? Or nothing at all? And similarly for maths. For instruction, children
are then grouped by their learning level, not grade. Teaching-learning activities and materials for each group are
based on their level and aimed at enabling children progress to the next level and beyond. The goal is to ensure
that students gain basic competencies in reading and arithmetic. The programme owes its success in no small
measure to the establishment of level-wise groups, explicit learning goals for each group and tailored teaching
techniques. This contrasts with the existing practice of teaching a prescribed curriculum to students of a given age,
irrespective of their ability to comprehend it.
Additionally there is a need to redesign the financing system so that plans are based on clearly articulated learning
goals and budgets are tied to performance on learning outcomes. This will need to be supported by a credible
system to track learning progress. The Centre has already taken some small steps in this direction by starting
state-level learning assessments. These measures must be accelerated and prioritized in the years to come.

SC lays down rules for BCCI elections


Observing that individuals are birds of passage while institutions are forever and underlining the principles of
institutional integrity and public policy, the Supreme Court has quashed a rule allowing BCCI administrators
to have commercial interests in formats like IPL and Champions League T20, and barred its ousted chief N
Srinivasan from contesting elections.
The bench of Justices T S Thakur and F M I Kalifulla held that conflict of interest had arisen in Srinivasans case
since he played a role in organising and managing events like the IPL in which Chennai Super Kings, a team
owned by his company India Cements Ltd, participated while he took part in decisions concerning the team.
In December 2007, the IPL governing council, constituted by the BCCI, invited tenders for IPL franchises. India
Cements was one of the bidders. N. Srinivasan, managing director and significant shareholder of the company,
was then BCCI treasurer. In 2008, by a change in Rule 6.2.4 of the BCCI regulations, administrators were allowed
to hold commercial interest in the IPL and Champions League T-20. A challenge to this amendment was rejected
by the SC, though, in a dissenting note, Justice Gyan Sudha Misra warned of conflict of interest. In 2013, when
Delhi Police received information about match fixing in the IPL, Srinivasans son-in-law, Gurunath Meiyappan,
and Raj Kundra, an equity holder in Rajasthan Royals, were alleged to be involved. The constitution of a probe
commission by the BCCI, to look into the allegations, was challenged in the Bombay High Court, which held it to
be invalid but didnt grant any further relief. The HCs order was appealed by both parties in the SC.

January 2015

Page 65

The bench asked the BCCI to conduct within six weeks its election in which no one who has any commercial
interest in BCCI events, including Srinivasan, shall be eligible for contesting the elections for any post
whatsoever. The court, however, cleared Srinivasan of alleged cover-up in the IPL corruption case, underlining
that the charges against him could at best raise a suspicion but did not stand proved.
Lending credence to the Mudgal panel probe report, the bench also held Srinivasans son-in-law Gurunath
Meiyappan and Rajasthan Royals co-owner Raj Kundra guilty of betting in the 2013 IPL, and asked a new threemember committee to determine the quantum of punishment for them under IPL operational rules and the BCCI
anti-corruption code.
The bench made it clear that franchisee CSK and RR were also liable to be punished under the regulations since
Meiyappan and Kundra were held to be team officials of the two IPL teams and their quantum of punishment
would depend on the degree of misconduct. The committee will further probe the allegation of betting against
BCCI chief operating officer Sunder Raman and, if he is found guilty, will award punishment.
There were various issues up for the courts consideration. The first was about BCCI accountability. An earlier
constitution bench of five judges had already held that the BCCI is not a state body. The court got around this by
stating that since the BCCI performs a public function, it would come under the writ jurisdiction of HCs under
Article 226 of the Constitution. The SC went a step further and declared that a body like the BCCI is subject to the
same standard of accountability applicable to judicial review of state action. While the court did not find any
technical or procedural infirmity in the manner of the amendment to Rule 6.2.4, it held the change to be invalid as
it violated some basic principles of law. In an analysis with far-reaching implications, the court declared that any
deviation, abrogation, frustration or negation of the principles of justice, fairness, good conscience, equity and
objectivity would be opposed to public policy. On this touchstone, it found the amendment to be invalid as it
permits, protects and perpetuates situations where administrators can have commercial interests in breach or
conflict with the duties that they owe to the BCCI.
Nixing Rule 6.2.4 which allowed administrators to hold commercial stakes in BCCI events, the bench said that the
rule permitted situations where conflict of interest would grossly erode the confidence of the people in the

January 2015

Page 66

authenticity, purity and integrity of the game. It described this rule as a true villain of the situation hampering
the purity of the game and giving rise to suspicions of sporting fraud.
The bench set up a three-member panel it will be headed by former Chief Justice of India R M Lodha and will
also include former Supreme Court judges Justices Ashok Bhan and R V Raveendran to recommend sweeping
reforms that the BCCI requires to undergo so that demands of institutional integrity are met suitably in larger
public interest and a mechanism is put in place to resolve all situations of conflict of interest.
The panel has been asked to make recommendations for amendments to the memorandum of association,
constitution, rules and regulations of the BCCI, to rejig the manner in which the cricketing body has been
managing its affairs while discharging what the court called important public functions. The bench said that its
order of disqualifying those with commercial interests from contesting elections would continue till the panel
awards suitable punishment to those held guilty of misconduct or till a person concerned does not give up on all
such stakes, whichever happens later.
It asked the panel to give notices to all the parties before spelling out the punishment and said all such orders
would be binding on the parties concerned and the BCCI. The parties could move appropriate legal forum, which
in this case would be the Supreme Court, if they are aggrieved by the orders passed by the panel which has to
complete the task within six months. While Meiyappan and Kundra face a life ban, the franchisee could get
terminated if the panel decides to awards the maximum punishment. With these orders, the court disposed a
bunch of petitions moved by the Cricket Association of Bihar. The association, through Aditya Verma, had sought
quashing of amended Rule 6.2.4, besides restraining Srinivasan from contesting elections.

Centre set to unveil housing for all plan


Targetting a slum-free India by 2022, the Centre is finalising fiscal incentives for affordable housing and slum
rehousing projects, including granting infrastructure status for their construction. This means the industry will be
able to access central funding through viability gap funding, or VGF, from financial institutions on priority basis
and avail direct and indirect tax benefits that can be passed on to the end-user. These measures are part of the
NDAs Sardar Patel Housing for All Mission, which is currently being given the finishing touches following a
review by Prime Minister Narendra Modi.
Other fiscal incentives in the works are service tax exemption for all affordable housing projects, earmarking of 3
per cent credit for loans up to Rs 15 lakh to the urban poor and raising the standard deduction for rental income
from 30 per cent to 40 per cent.
Another proposal is to allow reinvestment of capital gains from the sale of a single house into multiple dwelling
units under Section 54 of the Income Tax Act, which deals with capital gains. Sops are proposed for lending
institutions, too. There could also be concessional import duty on innovative technology for low cost housing.
Simultaneously, there will also be a push for institutional finance for home-buyers.
The Ministry of Housing and Urban Poverty Alleviation (MHUPA) estimates the total cost of the mission at Rs 12
lakh crore (at the rate of Rs 6 lakh per home), with the Centres estimated support in the range of Rs 2 lakh crore.

January 2015

Page 67

However, while the previous UPA governments flagship programme on affordable housing the Rajiv Awas
Yojana had been lauded for doing away with the concept of cut-off date for deciding the eligibility of slumdwellers, the NDA has proposed to reintroduce the concept, permitting states to set their own cut-off dates.

Women in Indian army


On its 66th Republic Day, during a mighty parade in the national capital, India showcased woman power with
all-women contingents of the three Services for the first time. A day earlier, Wing Commander Pooja Thakur
became the first woman to lead a ceremonial tri-service guard of honour, which the visiting U.S. President
inspected. But when it comes to the overall status of women in the Indian armed forces, especially in the Army, all
this represents a travesty of gender justice.

Since being inducted into the Army in 1992 under the Women Special Entry Scheme (they were earlier in the
Military Nursing Service from 1927 and in the Medical Officers Cadre from 1943), women Army officers are still
denied permanent commission on a par with men: they have to be content with the short service commission. On
a batch of petitions filed in 2003 by women officers demanding an end to the discriminatory practice, the Delhi
High Court in March 2010 granted their just and fair claim for permanent commission with the singeing words
that it was not some charity being sought but enforcement of their constitutional rights.
While this prompted the Air Force and the Navy to grant women officers permanent commission, the Army took a
different stand, arguing, among other things, that the bulk of the armys Junior Commissioned Officers and other
ranks hail from rural India, who are not yet ready to accept a woman as their leader in combat situations. In an
affidavit filed before the Supreme Court in 2012 while appealing against the High Court order, the Army added:
In theory women in the army may sound good but in practical terms the arrangement has not worked well in the
Indian Army and as a concept also our society is not prepared to accept women in combat role.

January 2015

Page 68

As the issue remains in the Supreme Court for more than four years now, the Army needs to get real, and persuade
itself to go beyond symbolic and cosmetic steps. It needs to recognise womens capabilities as many advanced
armed forces across the world have done, even committing them to combat roles and their right to a full-fledged
career in the force, on a par with men. During the 14-year short service commission tenure they now enjoy,
women officers in various corps are assigned duties similar to those of men officers without distinction, to all
possible field units with men officers. If it is the Armys claim that beyond that point in permanent commission
tenure women could be exposed to hostile environments it has cited the unique nature of responsibility and
organisational requirement that the Army Act necessitates that truly smacks of gender discrimination. The
time has come for the Army to end this iniquitous situation.

Counter Arguments
Armed forces have been constituted with the sole purpose of ensuring defence of the country and all policy
decisions should be guided by this overriding factor. All matters concerning defence of the country have to be
considered in a dispassionate manner. No decision should be taken which even remotely affects the cohesiveness
and efficiency of the military. Concern for equality of sexes or political expediency should not influence defence
policies.
India has limited experience as regards induction of women in the armed forces. The first batch had joined in
1992. Therefore, our knowledge of the complexities and long-term effects of the issues involved is highly limited.
The United States is considered a pioneer and a trend-setter as regards induction of women in the services. There
are approximately 200,000 American women on active duty in the US armed forces. They constitute nearly 20
percent of its strength. Women are also participating in Iraq operations in large numbers, albeit in support
functions as they are forbidden to be placed in direct ground combat with enemy.
Women in all militaries are confronted with social, behavioural and psychological problems at all levels.
According to many surveys carried out women are not fully satisfied with the ethos of military profession. Some of
the major issues concerning women in all defence forces are:
Sexual Harassment - This is one single concern that has defied solution so far how to ensure safety and
protect dignity of women in the forces. Almost all women view this as their major fear. The American and the
British societies are highly emancipated and liberal with women having equal status in all fields. Yet, the level of
sexual harassment of women in their forces is startling.
Low Acceptance - Acceptance of women in the military has not been smooth in any country. Every country has
to contend with skeptics who consider it to be a counterproductive programme. They tend to view it as a political
gimmick to flaunt sexual equality, or, at best, a necessary liability.
Lack of Job Satisfaction - Most women feel that their competence is not given due recognition. Seniors tend to
be over-indulgent without valuing their views. They are generally marginalised and not involved in any major
decision-making. They have to work twice as hard as men to prove their worth. Additionally, a woman is always
under scrutiny for even minor slip-ups.
Poor Comfort Level - Most women accepted the fact that their presence amongst males tends to make the
environment formal and stiff. Mutual comfort level between men and women colleagues is low. Men miss their
light hearted banter which is considered essential to release work tensions and promote group cohesion. They
consider women to be intruding on their privacy.

January 2015

Page 69

The experience of countries that have inducted women in their armed forces has been mixed. They have had and
are still grappling with considerable adjustment problems even in societies that are liberated and profess gender
equality.
The profession of arms requires both mental and physical prowess. That is the reason why even advanced
countries are wary of inducting women in fighting units. They have been taking precautions to ensure that women
are neither pitched against enemy in face-to-face direct combat nor exposed to the risk of capture by the
adversary. No wonder then that despite the much touted huge presence of women in US forces in Iraq, there has
not been a single woman casualty so far whereas close to 3,000 men have lost their lives. They have been kept
sheltered in safe appointments.
It is imprudent to replicate the model or path followed by others. Every nation has to weigh its options against the
backdrop of its own social and environmental mores. Every country has its own social/cultural moorings, type of
hostilities encountered, level of technology and larger manpower issues. It is now commonly accepted that women
should be encouraged to join the services only under the following circumstances:

When a country is short of men or there are not enough men volunteering to join the forces.
When the armed forces of a country are technologically very advanced and there is a huge requirement for
highly qualified personnel for high-tech support functions. Women can be gainfully employed for the same.
Where societal and cultural ethos have matured to the extent that barriers of gender prejudices have vanished
and both sexes have adjusted to the desired level of mutual comfort.
Where militaries are not deployed on active combat duties and are generally assigned comparatively passive
tasks. A number of countries like Canada and Australia induct women in their forces as they are aware that
they will never be required to participate in an operation at home or abroad.

Integrated coastal zone management


Integrated coastal zone management (ICZM) is a process for the management of the coast using an integrated
approach, regarding all aspects of the coastal zone, including geographical and political boundaries, in an attempt
to achieve sustainability. This concept was born in 1992 during the Earth Summit of Rio de Janeiro. The coast can
be thought of as an area of interaction between the land and the ocean. The European Commission defines the
ICZM as follows:ICZM is a dynamic, multidisciplinary and iterative process to promote sustainable management of coastal zones.
It covers the full cycle of information collection, planning (in its broadest sense), decision making, management
and monitoring of implementation. ICZM uses the informed participation and cooperation of all stakeholders to
assess the societal goals in a given coastal area, and to take actions towards meeting these objectives. ICZM seeks,
over the long-term, to balance environmental, economic, social, cultural and recreational objectives, all within the
limits set by natural dynamics. 'Integrated' in ICZM refers to the integration of objectives and also to the
integration of the many instruments needed to meet these objectives. It means integration of all relevant policy
areas, sectors, and levels of administration. It means integration of the terrestrial and marine components of the
target territory, in both time and space.
Importance of Coastal Zones and effects of human activity
The dynamic processes that occur within the coastal zones produce diverse and productive ecosystems which have
been of great importance historically for human populations. Coastal margins equate to only 8% of the worlds

January 2015

Page 70

surface area but provide 25% of global productivity. Stress on this environment comes with approximately 70% of
the worlds population living within a days walk of the coast. Two-thirds of the worlds cities occur on the coast.
Valuable resources such as fish and minerals are considered to be common property and are in high demand for
coastal dwellers for subsistence use, recreation and economic development. Through the perception of common
property, these resources have been subjected to intensive and specific exploitation. For example; 90% of the
worlds fish harvest comes from within national exclusive economic zones, most of which are within the sight of
shore. This type of practice has led to a problem that has cumulative effects. The addition of other activities adds
to the strain placed on this environment. As a whole, human activity in the coastal zone generally degrades the
systems by taking unsustainable quantities of resources. The effects are further exacerbated with the input of
pollutant wastes. This provides the need for management. Due to the complex nature of human activity in this
zone a holistic approach is required to obtain a sustainable outcome.
Huge concentration of human activities in this narrow strip has led to rapid degradation of these zones' rich and
important ecosystems and habitats and, as a result, the entire coastal system faces an uncertain future. The coastal
zone is a difficult area to manage due to temporal issues (current, tides and seasons) and the overlapping of
physical geography and hydrography (inshore, shoreline, offshore), of jurisdictions, legal mandates and the remits
of government agencies and the often competing needs of stakeholders.
Typically, many different local, national and regional government agencies are responsible for different aspects of
the same physical areas and different uses of the coastal zone, e.g. fisheries, environment, agriculture, transport
(inland and marine), urban planning etc. These ministries often find themselves undertaking the same or similar
tasks and sometimes, even working against each other due to inharmonious and competing objectives of their
legal mandates
Anthropogenic factors that negatively affect the normal functioning of coastal ecosystems or even make this
functioning impossible may be characterized as anthropogenic disturbances. These may be sub-divided into four
groups:
1.

Chemical pollution increase in the concentration of certain chemical substances above natural levels.
a) Toxic chemical pollution: inflow (with sewage) of detergents, chemical and pharmaceutical industry
wastes, washout of pesticides from agricultural lands etc.
b) Non-toxic chemical pollution: excess of normal percentage of nutrients organic substances (nitrogen,
phosphorus) that leads to over development of bacteria and cyanobacteria (euthrophication)
c) Mixed pollution: simultaneous inflow of both toxic and non-toxic substances, for example, oil spillage,
dumping household rubbish.

2. Physical pollution changing of biotope parameters (that is, changing of characteristics of the environment)
a) Thermal pollution caused by discharge of heated waters into the coastal zone
b) Noise pollution a high level of background noise caused by large-capacity engines and small-sized
vessels, noise produced by people on beaches.
c) Light pollution lighting of shoreline at night by light from hotels, streets, hydraulic engineering
constructions.
d) Radioactive pollution radioactive accidents and disasters.
e) Electromagnetic impact generating artificial electromagnetic fields in the near-shore zone (resulting, for
example, from cable laying)
3. Biological pollution disturbances and changes in species composition

January 2015

Page 71

a) Disappearance of certain species resulting from, for example, excessive hunting or harvesting (whales,
seals), high disturbance level (coastal birds)
b) Occasional introduction of a species alien to a given ecosystem that causes its significant (sometimes
disastrous) reorganization
c) Deliberate introduction of a species that seems to be economically profitable (king crab on the Barents
coast of the Kola Peninsula, Far Eastern humpback salmon in the White sea)
4. Destruction of habitat complete or partial destruction of coastal ecosystems or their reorganization caused
by engineering or mining activities.
a) Extraction of sand, gravel, pebbles and granite for building.
b) Creation of artificial coastal territories a practice which is widespread in Japan and The Netherlands.
c) Hydro-engineering constructions that separate part of the coastal (water) territory from marine
ecosystem (dams of tidal power stations, filtering dams)
d) Damping and shifting of the bottom sediments - for example, during dredging.
e) Development of coastal land (building houses)
f) Deforestation of coastal zone (logging of forests and mangrove swamps)
g) Destruction of coral reefs (for example, caused by the souvenir industry)

Dolphin Survey
In the first of its kind exercise, a comprehensive survey will be undertaken in February to assess the population of
dolphins in the Ganga River as part of the Clean Ganga Mission. Gangetic dolphins are an endangered species and
are now found in only a few stretches of the river. Dolphin is an indicator species. Its number and distribution is
an indication of the health of the Ganga River. Like the tiger in the forests, the dolphin is at the apex of the food
chain in its habitat.
Dolphin conservation has not figured in earlier attempts to clean the river the Ganga Action Plan phase-I and
phase-II were more focused on sewage treatment though it was being run as a separate programme. The
dolphin was also named the National Aquatic Animal of India in 2009. In the past, dolphins were found across
the length of the Ganga and in many of its tributaries. They used to be found in the Yamuna as well. The last
recorded sighting of a dolphin in the Yamuna in Delhi happened in 1967. Today, they have disappeared from most
of the tributaries and are concentrated in very small areas of the Ganga.
The Gangetic dolphins are facing a loss of habitat because of a decrease in the flow of water, pollution and
excessive siltation. Dolphins breed in deep waters and feed in shallow waters. In the Ganga, excessive siltation has
reduced the depth. A number of barrages and hydropower projects have interrupted the flow of water. In addition,
the destruction of floodplains has affected the population of small fish which form the main diet of dolphins.

January 2015

Page 72

Peshawar attacks and Indias potential


maintaining peace in Af-Pak border areas

role

in

On 16 December 2014, 9 members of the Tehrik-i-Taliban Pakistan (TTP) conducted a terrorist attack on
the Army Public School in the Pakistani city of Peshawar. They entered the school and opened fire on school staff
and children, killing 145 people, including 132 schoolchildren.
The Tehrik-i-Taliban Pakistan (TTP) described the attack as revenge for Operation Zarb-e-Azb, the Pakistani
military's offensive in North Waziristan that started in summer 2014.
Operation Zarb-e-Azb is a joint military offensive being
conducted by Pakistan Armed Forces against various militant
groups, including the Tehrik-i-Taliban
Pakistan (TTP), Lashkar-e-Jhangvi, Jundallah, al-Qaeda,
the East Turkestan Islamic Movement (ETIM), the Islamic
Movement of Uzbekistan (IMU) and the Haqqani network. The
operation was launched by the Pakistan Armed Forces on 15
June 2014 in North Waziristan (part of the Federally
Administered Tribal Areas along the Afghan border) as a
renewed effort against militancy in the wake of the 8 June,
2014 attack on Jinnah International Airport in Karachi, for
which the TTP and the IMU claimed responsibility. Part of the
ongoing war in North-West Pakistan, up to 30,000 Pakistani
soldiers are involved in Zarb-e-Azb, described as a
"comprehensive operation" to flush out all foreign and local
militants hiding in North Waziristan.
Long ago, the Pakistan Army created armed militias, which it
called the Mujahideen and the Taliban (terrorist proxies to the rest of the world), to act as force multipliers of

January 2015

Page 73

Pakistans foreign policy against its neighbours. Instead, some of these strategic assets are now rebounding and
rather than facilitating strategic depth in Afghanistan and India, have secured strategic space for themselves
within Pakistan.
Pakistans pro-jihadist policy was first used in the 1980s, when the country, with full U.S. backing, supported
Islamist warriors fighting Soviet troops in Afghanistan. After the Soviet withdrawal, Pakistan turned the jihadists
on India in the 1990s, especially in the disputed region of Kashmir. By the mid-1990s, Pakistan promoted the
emergence of a new Islamist movement in Afghanistan, the Taliban.
However, after the September 2001 attacks in the U.S., Islamabad formally sided with the U.S. That alliance split
the Pakistani jihadist movement, with a more radical wing turning on its own country, becoming the bad
Taliban, under the influence of al Qaeda, which made Pakistan its base after 2001. Other good Taliban groups
based in Pakistan have continued to fight only in Afghanistan or India.
Ever since the Taliban and al-Qaeda leadership and base shifted into Pakistan after international troops landed in
Afghanistan, there was much pressure on Gen. Musharraf to go against the militants in Pakistan, who were using
the FATA (Federally Administered Tribal Areas) as a base to carry out operations against the International
Security Assistance Force (ISAF). While Gen. Musharraf faced serious pressure and at times even sanctions and
threats from the U.S. to do more, there was also equal resistance from his own establishment to going against
their boys. How can they, for they are seen as their trump card in Afghanistan?
As a result, Pakistan was selective in apprehending and neutralising the militants on its soil. More al-Qaeda
leaders were either captured and handed over, or neutralised. Even today, Pakistan is more than willing to
sacrifice the al-Qaeda leadership, but not the Afghan Taliban. There is enough literature available on the number
of al-Qaeda leaders either captured or handed over to the U.S. silently by Pakistan vis--vis the Afghan Taliban.
The establishment of the TTP should be interpreted in this background; it was more a creation of the al-Qaeda
than that of the Afghan Taliban under Mullah Omar.
The Pakistani Taliban, formed in 2007, took control of the tribal areas and then the Swat Valley in the northwest,
before a military operation pushed them out of Swat in 2009. That was followed by an operation in South
Waziristan the same year. But even after the alleged cleanup The Pakistan Taliban still holds a stronghold in
North Waziristan and Swat Valley. In October 2012 a Taliban gunman shot and critically wounded Malala
Yousafzai in Swat Valley as she was returning home from school in Pakistan's northwest. The militant group
targeted her because of her vocal support for girls' education and criticism of the insurgents' behavior when they
took over the scenic Swat Valley where she lived several years ago. She is now the youngest-ever Nobel
Prize laureate. It wasnt until June, 2014 that the military moved to clear North Waziristan
Still, doubts linger over claims of a new policy. Many militants including Afghan insurgents, were able to
flee North Waziristan before the offensive, Pakistan security officials concede, but they insist that any who remain
are being targeted.
After Peshawar attack, Pakistan Prime Minister Nawaz Sharif outlined his vision to tackle the unaddressed
challenges of terrorism and extremism. He said, Pakistans soil will not be allowed to be used for acts of terrorism
against a neighbouring country. Pakistan would not rest till the last terrorist was eliminated from its soil.
This upheaval, which is of Pakistans own making, has to be tackled on the political, military, economic and
ideological planks. In this, the Army, the government, the political opposition and civil society should be on the
same page.
The regional effort should commence with India offering to resume the composite dialogue which must include
Afghanistan in the context of the U.S.s withdrawal and misgivings about Indias role in financing and training the

January 2015

Page 74

TTP. A joint and special AfPak Commission is in the offing which must ultimately lead to an Af-Pak-India
trilateral intergovernmental group which can address the menace of terrorism under both the UN and South
Asian Association for Regional Cooperation (SAARC) conventions on counter-terrorism. What India and Pakistan
can do together and along with Kabul towards stabilising Afghanistan and the region has been discussed on Track
II since 2007. Its potential is profound.
China has indicated serious interest in filling the vacuum created by the withdrawal of the West in Afghanistan.
Afghan President Ashraf Ghani has urged China to persuade its best friend and ally, Pakistan, to help in the
reconciliation process. Pakistan holds the key to restoring a modicum of calm on the western front. Russia,
Pakistans newest friend, knows full well that the Mujahideen (the present Taliban) of its era takes its orders from
Islamabad. Russia and China are current strategic allies and can pressure Pakistan into freezing cross-border
activities in Afghanistan. The Shanghai Cooperation Organisation (SCO) has both China and Russia as its lead
members with Afghanistan, Iran, Pakistan and India as observers. Its primary pursuit is counter-terrorism.
Regional networking of the SCO and SAARC (which has a convention on counter-terrorism) in coordinating and
implementing regional and international agreements on combating terrorism is feasible.

Nepal to join Silk Road initiative


China has taken a firm step to extend the Silk Road Economic Belt to South Asia, by working out a blueprint of
connecting Nepal with the Eurasian transport corridor. Nepal formally signed a four-point document in December
2014 endorsing the Silk Road Economic Belt a pet project of President Xi Jinping for connecting Asia with
Europe along a land corridor, with China as its hub.
A local media report in Nepal quoted an embassy official in Beijing as saying that Nepal and China have agreed to
revive the old Silk Road that runs from Lhasa to Kathmandu to Patna. China wants to connect with Nepal and
South Asia through an extension of the Qinghai-Tibet railway.
Observers say that the rail connectivity with China will spur the globalisation of the Nepalese economy. Once a rail
connection with China is established, Nepalese goods can be transited to the international markets through the
Eurasian transportation network.

Silk Road Project - In 2013, Chinese President Xi Jinping unveiled plans for two massive trade and
infrastructure networks connecting East Asia with Europe: the New Silk Road (also known as the Silk Road
Economic Belt) and the Maritime Silk Road.
The land-based New Silk Road will begin in Xian in central China before stretching west through Lanzhou
(Gansu province), Urumqi (Xinjiang), and Khorgas (Xinjiang), which is near the border with Kazakhstan. The Silk
Road then runs southwest from Central Asia to northern Iran before swinging west through Iraq, Syria, and
Turkey. From Istanbul, the Silk Road crosses the Bosporus Strait and heads northwest through Europe, including
Bulgaria, Romania, the Czech Republic, and Germany. Reaching Duisburg in Germany, it swings north to
Rotterdam in the Netherlands. From Rotterdam, the path runs south to Venice, Italy where it meets up with the
equally ambitious Maritime Silk Road.

January 2015

Page 75

China plans to create a $16.3 billion fund to build and expand railways, roads and pipelines in Chinese provinces
that are part of the planned Silk Road Economic Belt. The massive investments will help boost economic
development in Chinas poorer inland regions, a key goal of the Silk Road Economic Belt.
Meanwhile, Beijing also plans to promote policies that encourage Chinese banks to lend money to other countries
along the planned route. And thats in addition to the massive amounts of infrastructure funding China had
already promised to Silk Road partners: $1.4 billion for developing port infrastructure in Sri Lanka;$50 billion in
infrastructure and energy deals in Central Asia; $327 million in general aid to Afghanistan, some of which will
fund the construction of rail lines, highways, water conservancies and power facilities. With the establishment of
Chinas new Asian Infrastructure Investment Bank (AIIB), even more money is expected to flow into the region to
shore up infrastructure capabilities.
In most cases, the Silk Road is not a hard sell. Regional partners (particularly smaller and often over-looked
countries like the Maldives) are eager to gain Chinese assistance in building critical infrastructure for their people.
In less prominent countries, China may be the only ready source of international aid. And in countries that have
several major power suitors vying for their affections (the Central Asian states, Indian Ocean states, and Eastern
Europe in particular), Chinas largess may spark a sort of bidding war that encourages Chinas rivals to commit
funding and diplomatic attention in ways they might not otherwise do. For example, Indian Prime Minister
Narendra Modis concerted outreach to Indias smaller neighbors, including Bhutan, Sri Lanka, and Nepal, is
partially motivated by fear that New Delhi is being overshadowed by Beijing in those regions.
From economic exchanges, China hopes to gain closer cultural and political ties with each of the countries along
the Silk Road resulting in a new model of mutual respect and mutual trust. The Silk Road creates not just an
economic trade route, but a community with common interests, fate, and responsibilities. The Silk Road
represents Chinas visions for an interdependent economic and political community stretching from East Asia to
western Europe, and its clear that China believes its principles will be the guiding force in this new community.

January 2015

Page 76

For China, the Silk Road Economic Belt and Maritime Silk Road are opportunities to expand Chinese influence
while also showcasing Beijings softer side. If brought to fruition, the Silk Roads would boost Chinas trade with
effectively the whole Eurasian continent. Meanwhile, with Beijing footing the bill for much of the requisite
infrastructure development, the vast trade network would increase the number of regional governments that view
China as a patron and benefactor rather than a threat. To use Chinas favorite foreign policy catchphrase, its a
win-win situation China can foster a softer image for itself even while boosting its regional influence.

China ropes in African nations into the Silk Road imitative


China has accelerated its drive to draw Africa into the Maritime Silk Road Beijings ambitious transcontinental
initiative following the visit to the continent by Foreign Minister Wang Yi.
Among the several themes covered during Mr. Wangs five-nation visit, the push for speedy construction of a
modern standard-gauge rail link between Nairobi and Mombasa was one of the star highlights.
Nairobi to Mombasa - The project to linkup the capital of Kenya and the countrys well-established port has
much larger implications. Once it is through, the rail corridor will help connect the vast hinterland of East Africa
with the Indian Ocean, making it a salient strategic project, which will add one more layer to the realisation of
President Xi Jinpings dream of establishing a 21st century Maritime Silk Road (MSR).
If plans materialise, Mombasa would be eventually linked with Malaba in west Kenya and then Kampala, Kigali
and Juba capitals of Uganda, Rwanda and South Sudan respectively.
The Chinese undertook the project, clearly aware of the larger regional opportunities that it presented.
Symbolically, this was evident when the leaders from Uganda, Rwanda and South Sudan stood aside with visiting
Chinese Prime Minister Li Keqiang in Nairobi, along with representatives from Tanzania, Burundi and the African
Development Bank, to sign a deal on the project.
As concrete steps are taken on ground, it has become apparent that Africa is becoming one of the pillars of the
MSR project. Apart from building railroads, highways and airports, the Chinese are developing 12 deep water
ports, seven of which are along the African coastline.
These are: Djibouti, Dares Salaam, Maputo, Libreville (Gabon), Tema (Ghana), Dakar (Senegal), Bizerte (Tunisia).
In turn, these ports connect with the MSR, as they are meant to serve large commercial ships coming from Asia,
laden with food and industrial products, and return with raw materials from Africa.
Africa connects well with one of the major spurs of the MSR the Chinese province of Yunnan, which shares
borders with Myanmar, Vietnam and Laos, with Thailand further to the south.
Bypassing Malacca - Hoping to avoid the vulnerable Malacca strait, the Chinese are building rail corridors from
Kunming, Yunnans capital, to Myanmar and Thailand via landlocked Laos. China has signed an agreement to
build a rail corridor that will connect Yunnan with Myanmars port city of Kyaukphyu on the Bay of Bengal, thus
bypassing Malacca straits. Kyaukphyu is also the starting point of the China-Myanmar oil and gas pipeline, and
enters China at the city of Ruili.

January 2015

Page 77

With Laos, the China-Vientiane railroad project is expected to be completed by 2018. China has recently approved
a $23 billion project, which includes a high-speed link between Chaing Khong, just south of the Laos capital
Vientiane, and Ban Phachi in Thailand.
Some analysts are of the view that China and Thailand are taking the lead in building the MSRs connection with
Africa. The website East by Southeast reported that last year, Chinese and Thai officials formed investment
vehicles for the construction of the seven strategic ports on the African coastlines.
Thai rice exporters are likely to be one of the main beneficiaries of the Asia-Africa link under the MSR plan.
Already 60 per cent of Thai rice exports in 2013 headed for Africa, and consumption trend was even higher last
year.

Growing Opium production in Myanmar


A decade ago, Myanmar seemed on course to wipe out the opium fields and heroin jungle labs along its eastern
border, the notorious Golden Triangle.
Today, valley after valley in the mountains of Myanmar is covered with resplendent opium poppies. Poppy
cultivation in Myanmar has nearly tripled since 2006, reaching close to 150,000 acres, according to surveys
carried out by the United Nations. Growing opium poppies is illegal in Myanmar, but farmers in this remote and
desperately poor region say they have few viable options.
Myanmar remains a distant second to Afghanistan in global production of opium, the key ingredient in heroin.
The U.N. estimates 550,000 acres in Afghanistan were dedicated to growing poppy last year. But Golden Triangle
heroin has a reputation for superior quality and fetches much higher prices, especially in China, which appears to
be the primary market. Until the 1980s, Myanmar was the worlds largest supplier of heroin. Afghan production
surged around the turn of the century, and supplies from the Golden Triangle plummeted when China pressured
Myanmar ethnic groups along its border to stop growing poppy.
But instead of disappearing, opium production migrated south, away from the Chinese border, into areas
controlled by a patchwork of ethnic groups, some of them allied with the government, some of them hostile.
The Myanmar military, which is battling a number of ethnic armies even as the government professes peace, is
wary of cracking down on drugs, fearing it could jeopardise tenuous alliances it has built with other militias, Mr.
Whalen said.
The U.N. has persuaded families here to dedicate part of their fields to coffee plants, a pilot project led by Jochen
Wiese, an official with the U.N. anti-narcotics office who spent nearly three decades in Peru and started a
successful crop substitution programme there for farmers of coca, the raw ingredient of cocaine.
Crop substitution programmes have failed numerous times before in Myanmar, notably with buckwheat and sugar
cane, both of which were difficult to carry over dilapidated roads. Mr. Wiese says he is confident that he can make
a name for Myanmar coffee and leverage his connections to make sure the coffee makes it to market.

January 2015

Page 78

Golden Triangle is one of Asia's two main opiumproducing areas. It is an area of around 950,000 km2
that overlaps the mountains of three countries of
Southeast Asia-Myanmar, Laos and Thailand. Along
with Afghanistan in the Golden Crescent, it has been
one of the most extensive opium-producing areas of
Asia and of the world since the 1950s. Most of the
world's heroin came from the Golden Triangle until
the early 21st century when Afghanistan became the
world's largest producer.
The Golden Crescent is the name given to one
of Asia's two principal areas of illicit opium
production located at the crossroads of Central,
South, and Western Asia. This space overlaps three
nations, Afghanistan, Iran, and Pakistan, whose mountainous peripheries define the crescent, though only
Afghanistan and Pakistan produce opium, with Iran being a consumer and trans-shipment route for the
smuggled opiates.

Terror attack on Paris magazine kills 12


Heavily armed gunmen shouting Islamist slogans stormed the office of a satirical weekly Charlie Hebdo in Paris
on the morning of 7 January, 2015 and shot dead at least 12 people in the deadliest attack in France in four
decades.
The gunmen identified themselves as belonging to Al-Qaeda's branch in Yemen (Al-Qaeda in the Arabian
Peninsula), which took responsibility for the attack. Five others were killed and another eleven were wounded
in related shootings that followed in the le-de-France region. The police launched a massive manhunt for the
masked attackers who reportedly hijacked a car and sped off, running over a pedestrian and shooting at officers.
The police said witnesses heard the attackers, armed with a Kalashnikov rifle and rocket launcher, shout We have
avenged the Prophet and Allahu Akbar (God is greatest). Paris was placed under the highest alert status after
the attack on Charlie Hebdo , which has sparked anger in the past among Muslims for publishing cartoons of
Prophet Mohamed.
The attack took place at a time of heightened fears in France and other European capitals over fallout from the
wars in Iraq and Syria, where hundreds of European citizens have gone to fight alongside the radical Islamic State
group.
The manhunt led to the discovery on 9th January of the suspects, brothers Sad and Chrif Kouachi, who
exchanged fire with police. The brothers took hostages at a signage company in Dammartin-en-Gole, and were
gunned down when they emerged firing from the building.
On 11 January, about two million people, including more than 40 world leaders, met in Paris for a rally of national
unity, and 3.7 million people joined demonstrations across France. The phrase Je suis Charlie (French for "I am
Charlie") was a common slogan of support at the rallies and in social media. The remaining staff of Charlie

January 2015

Page 79

Hebdo continued weekly publication; issue No. 1178 sold out a print run of seven million copies in six languages,
in contrast to its typical French-only 60,000 to 45,000.

Sri Linka elects new president


Mahinda Rajapaksa has lost the presidential elections to his former Health Minister Maithripala Sirisena who
assumed charge as the countrys sixth executive President on 9th January. Mr. Sirisena secured 51.28 per cent of
the total votes polled, a 3.7 percentage point margin over outgoing President Rajapaksa, who announced snap
polls in November, two years ahead of schedule. The polls saw a turnout of 81.52 per cent, a substantial increase
from the 74.49 per cent recorded in the countrys 2010 presidential elections.
It was Mr. Sirisenas defection to a recently cemented joint opposition that brought momentum to the polls, which
until then seemed Mr. Rajapaksas entry point to a record third term.
It was the minority parties that contributed significantly to Mr. Sirisenas vote share in the elections, propelling
him to Presidency. The votes from the islands Muslims, northern Tamils and Indian-origin Tamils in the islands
Central Province proved decisive, with the Sinhalese vote-bank virtually split between the two key contestants.
Revival of democracy
Based on political calculations Mr. Rajapaksa called for fresh presidential elections in November 2014, two years
before the constitutionally scheduled time. He sought an unprecedented third term, a facility he created for
himself by altering Sri Lankas Constitution. A third term would have secured the continuity of his familys grip
over the Sri Lankan state, backed by an alliance with political loyalists and the new business class which he and
his family had created. However, many observers feared, and not without good reason, that a third term for Mr.
Rajapaksa would have robbed Sri Lankas democracy of whatever little vigour was left in it
Mr. Sirisenas election campaign stressed democratic and corruption-free governance, the end to family rule and
cronyism, and reviving the autonomy of key institutions of governance, specifically the legislature and the
judiciary.
In his political agenda, Mr. Sirisena and his New Democratic Front (NDF) emphasised two types of political
reforms, state reform and governance reform. The state reform agenda focussed on a redemocratisation of the Sri
Lankan state through constitutional reform. Reforming the executive presidential system and the abolition of the
18th Amendment, which made the office of the President enormously powerful and imperious, were its two key
elements.
The new President of Sri Lanka has his work cut out. Quickly, Mr. Sirisena will need to repair the much-eroded
confidence in Sri Lanka as a country that respects the rule of law, independence of the judiciary and media
freedom. Most importantly, the new dispensation must waste no time in addressing the Tamil demand for a just
peace, because on this hinges the future of the country itself. With his vast powers, Mr. Sirisena can immediately
redress some long-standing demands including returning to Tamils the land owned by them that the Army took
over in the 1990s and has stubbornly refused to vacate. Devolution of powers to the Northern Province should also
be high on his list of priorities, and if a new Constitution is being planned with a Westminster-style government,
just power-sharing with the Tamil minority should find a place. The new dispensation will also need to move

January 2015

Page 80

speedily on addressing alleged war crimes, starting with ascertaining how many Tamil civilians actually died in
the last phases of the war.
Tamil Nadus political parties must desist from fanning any extremist demands. For New Delhi, the change in Sri
Lanka presents the opportunity to build a bilateral relationship that is based on mutual trust and honesty rather
than on mutual suspicion. In recent months, the growing military relationship between Colombo and Beijing was
one of the big concerns in New Delhi. As a sovereign country, Sri Lanka must be free to choose its friends and
allies. But the least New Delhi can expect is that its defence concerns will not be compromised by a friendly
neighbour. Indias relations with Sri Lanka are civilisational, not contractual, and despite all the ups and downs,
the ties between the people of both countries, based on culture, religion and trade, have continued to flourish.
Both countries have a common strategic interest in a peaceful Indian Ocean. It is from this large base that both
must now work to strengthen mutually beneficial ties.
Sri Lanka watchers in India believe that with Maithripala Sirisena coming to power in Sri Lanka, the island
nations tilt towards China will be reduced considerably. They have been critical of the former President Mahinda
Rajapaksa for his tilt towards China and ignoring Indias pleas to grant devolution of powers to the Tamilmajority northern region, as he had repeatedly promised.
During Mr. Rajapaksas tenure, China won a primary role as a donor and investor, also loaning approximately
$500 million for development projects. It also bagged some of the biggest projects, including the $1.5-billion
Colombo port reclamation project for state corporations, a trend Mr. Sirisena has promised to reverse in his
manifesto, calling foreign debt a trap for Sri Lanka.
India has also been concerned about Chinas strategic influence in Sri Lanka, and National Security Adviser Ajit
Doval had reportedly complained twice in recent months about the docking of Chinese submarines in the
Colombo harbour.

Thaw in relations between US and Cuba


The simultaneous announcements by United
States President Barack Obama and his Cuban
counterpart Raul Castro on December 17 that
relations between the two countries would be
normalised have come in for widespread praise
internationally. Even within the U.S., only a
minority of right-wing politicians have criticised
the Obama administrations move to restore
diplomatic relations with Cuba after more than 50
years. The Cuban-American community in the U.S.
has welcomed the move. Obama has indicated that
within a month he will take steps to steadily
dismantle the trade embargo that the U.S.
imposed on the island nation in 1960.
Critics of the President in the Republican-dominated Senate and Congress have vowed to stall the lifting of the
economic blockade. Right-wing critics are accusing the President of giving too many concessions to Cuba.

January 2015

Page 81

The change in the US policy towards Cuba is not unrelated to changes in domestic political constituencies in the
US. The Cuban-American community, composed predominantly of those who ran away from Cubas socialist
system, had been a formidable lobby that garnered bipartisan support for USs isolationist policy, largely because
of its electoral influence in the swing state of Florida. Social and political transformations within this
community, as well as among the larger Hispanic community in the US, have blunted the extremism of this lot.
Sections of the US capitalist class, big farming in particular, have also called for ending the blockade in order to
access the Cuban market. Sections of the US diplomatic community too realise that far from weakening Cubas
socialist system, the US blockade and hostility has only strengthened Cubas position as the anti-imperialist lodestar of the western hemisphere.
The US shift in policy was also, in a sense, inevitable. It is the US, rather than Cuba, that stands politically isolated
in Latin America. The rise of radically progressive governments across south and central America has brought
about significant changes in geopolitical relations between these countries and the empire. Closer political and
economic integration without the overarching hegemonic presence of the superpower is now much more a reality
in the larger region than it was when the cold war ended a quarter of a century ago. The formation of new regional
blocs such as the Community of Latin American and Caribbean States (CELAC), the Union of South American
Nations (UNASUR), besides the Bolivarian Alliance for the Peoples of Our America (ALBA) has drastically
reduced the influence of the US and the forum it dominates, the Organization of American States (OAS). All these
alternative groupings have sought closer collaboration between Cuba and the other member-countries and have
broken many of the shackles of the 20th century which tied the region in dependency to the US. This regeneration
of Latin America and the support from its newfound allies has also helped Cuba ward off US pressure.
The blockade on Cuba started in 1960, in the last year of the Dwight Eisenhower administration. President
Eisenhower acceded to the wishes of the State Department, which had proposed a line of action that makes the
greatest inroads in denying money and supplies to Cuba, to decrease monetary and real wages, to bring about
desperation, hunger and the overthrow of the [Fidel Castro] government. The policy was revised in the 1980s and
1990s to make the sanctions more draconian. All the same, the U.S. blockade did not achieve its stated goal but it
did cause a lot of suffering to the Cuban people and had an impact on the countrys economy. Cuba estimates that
its economy has lost more than $1 trillion as a result of the blockade.
Obama administration officials have said that the President will immediately use his executive powers to lift the
sanctions on travel and business activities. In his statement on Cuba policy changes, Obama said that with the
U.S. having established diplomatic relations with other communist countries such as China and Vietnam, it made
no sense to continue with the policy on Cuba, another communist country. The decision to ease restrictions on
Cuba was influenced to an extent by the Summit of the Americas scheduled to be held in Panama in April. Panama
had invited the U.S. to the summit along with Cuba. Many countries in the region threatened to boycott the
summit if the U.S. insisted on excluding Cuba from it. With the statement on easing of relations, Obama and Raul
Castro can sit across the table at the summit, in what will be the first such meeting between the Presidents of the
two countries since the Cuban Revolution of 1959. Obama and Raul Castro did briefly shake hands and greet each
other during the funeral of South African leader Nelson Mandela in December 2013.
It has been evident for some months that the relations between the two countries were improving. Many U.S.
Senators and Congressmen were calling on the Obama administration to ease the sanctions on Cuba. The New
York Times, the voice of the U.S. East Coast Establishment, has been carrying on a campaign for the speedy
normalisation of relations between the two countries. Obama had won votes from the Cuban community in
Florida during his first campaign for the presidency by promising to improve relations with Havana. He did, in
fact, make some changes in Washingtons Cuba policy by allowing Cuban Americans to visit their homeland more
frequently and to send increased amounts of dollar remittances to relatives on the island. But he also continued
with many of the hostile policies of the past, including subversion of the Cuban political system. U.S. government
agencies such as USAID were used for the purpose. The U.S. spy Alan Gross was caught distributing money and

January 2015

Page 82

computers to the minuscule minority of dissident activists on the island. The Zunzuneo project was another plan
hatched by the agency aimed at subverting the socialist system through the auspices of social media.
The deal came in for effusive praise from leaders in Latin America and the Caribbean region, cutting across
political lines. Pro-American leaders in the region, such as the Presidents of Mexico and Colombia, were among
the first to express their happiness with the diplomatic rapprochement. Colombian President Juan Manuel Santos
expressed the hope that the deal would pave the way to the dream of having a continent where there will be total
peace. The Revolutionary Armed Forces of Colombia (FARC), which is currently engaged in peace talks with the
Colombian government, announced that it was declaring a unilateral and indefinite ceasefire. The civil war in
Colombia has been going on almost uninterrupted since the early 1950s.
President Nicolas Maduro of Venezuela hailed the agreement as a historic victory for the Cuban people. A day
after his statement announcing the normalisation of relations with Cuba, Obama gave his approval for sanctions
against Venezuela. Strained relations with the U.S. did not stop Maduro from congratulating Obama on his
initiative to normalise relations with Cuba. We have to recognise the gesture from Obama. A necessary and
courageous gesture, Maduro said. Venezuelan Foreign Minister Rafael Ramirez, however, highlighted the U.S.
double standards. He pointed out the contradiction of Obama imposing sanctions on Venezuela when he had
admitted that the U.S. prolonged sanctions against Cuba had failed to advance its interests.
The U.S. economic blockade of Cuba was deeply unpopular all over the region. The Obama administration was
alarmed by the diplomatic and economic inroads made by China and Russia in a region that the U.S. once
considered its backyard. Many U.S. policymakers and analysts blamed the diminishing influence on the countrys
failed Cuba policy. In the last Summit of the Americas, most of the time was wasted on talking about the U.S.
economic blockade on Cuba. Chinese President Xi Jinping and Russian President Vladimir Putin made extensive
visits to the region in 2014. When Obama stated that the U.S. policy towards Cuba had failed to advance our
interests he was not talking only about its political interests.
Economic benefit
In fact, many U.S. commentators say that it is the powerful commercial lobby in the U.S. that has prompted
Obama to speedily loosen the restrictions on trade with Cuba. Although the U.S. trade embargo has not ended
officially, the White House has said that it will authorise expanded sales and export of certain goods and services
from the U.S. to Cuba. Tom Vilsack, Agriculture Secretary, has said that the easing of restrictions expands
opportunities for U.S. farmers and ranchers to do business in Cuba. American economists estimated that the U.S.
would be able to sell $500 million worth of agricultural products to Cuba. The U.S. Wheat Associates (USW) said
that American exports would grow from the current level of zero to around 80-90 per cent in Cuba, as it is in
other Caribbean nations. The multinational corporation Cargill hailed Obamas initiative by saying that there are
clear economic and social benefits and the potential for a new market for U.S. farmers, ranchers and food
companies.

Military courts to be established in Pakistan


In early January Pakistans elected representatives voted to cut the ground from under their own feet. Despite the
misgivings that some political parties and several individual legislators had, the National Assembly and the Senate
ushered in the 21st Amendment to the Constitution under which military courts are to be set up for a period of two
years to adjudicate on terrorism-related cases. The political establishment seemed to have fallen in line with the
observation of the Army chief, General Raheel Sharif, that military courts had become the need of the
extraordinary times, a reference to the horrendous attack on a school by Taliban militants in which more than a
hundred children were killed.

January 2015

Page 83

The last time Pakistan had military courts was during the martial law regime of General Zia-ul-Haq in the 1980s.
The next military ruler, General Pervez Musharraf, did not promulgate martial law; there were no military courts
during his nine-year regime. That Parliament sanctioned the assumption of judicial powers by the Pakistan Army
during the time of an elected government led by Nawaz Sharif, who knows only too well the perils of military rule,
is a further irony. The move has undermined the hard-fought 2007 struggle of the judiciary for the separation of
powers, and is a blow to the countrys fragile democratic structure. There was immense public pressure on the
government to do something to contain terrorism after the Peshawar attack. Instead of using the opportunity to
strengthen investigations into terrorism offences, and put in place mechanisms to protect witnesses and judges
from intimidation by terrorist groups, the government grasped all too easily the hand offered by the military, an
admission of civilian helplessness.
The courts are to begin trying cases soon. In the eyes of the public, the Army is bound to be seen as being more
efficient than the elected government military trials do end quickly and military-appointed judges may be more
daring than those in Pakistans civilian antiterrorist courts. But speed does not always serve the interests of
justice, and opens up the danger of misuse of the process against innocent civilians, including those involved in
legitimate political activity. Years of patronage by the security establishment of terrorist groups have radicalised
all sections of society. Pakistan can tackle this malaise only by strengthening its democratic institutions. For New
Delhi, the military courts present an interesting albeit double-edged opportunity. India could now possibly make
the demand that the cases against the accused in the Mumbai attack should now be shifted to a military court. But
while this may speed up the case, there is no guarantee that the chances of conviction would improve.

UNFCC Conference 2014


They came, they talked, and they almost failed. That seems to be the trajectory of most of the conferences on
climate change held under the auspices of the United Nations Framework Convention on Climate Change
(UNFCCC). The latest, the 20th Conference of Parties (CoP 20) at Lima, Peru, was not very different. Over a
thousand delegates from 190 countries talked, argued, bargained, negotiated and finally, after extending the
meeting by a couple of days, came up with a patchwork Lima Call for Climate Action with which no one was
completely satisfied. This document is expected to form the basis for negotiations leading up to the crucial Climate
Summit in Paris in 2015 when nations are expected to arrive at a legally binding international treaty to replace the
Kyoto Protocol that lapsed in 2012.

January 2015

Page 84

Why, one wonders, is the same routine repeated when in 2014 the fact that human intervention is responsible for
global warming and climate change has been convincingly established? Fortunately, in Lima no one wasted time
arguing about the science of climate change. Yet they continued to debate about who should shoulder the principal
responsibility for curbing greenhouse gases (GHGs) and how adaptation measures could be financed. When the
Kyoto Protocol was negotiated and agreed upon in 1997, few disputed that the older industrialised nations had to
bear the primary responsibility. The world was cleaved into two halves developed and developing. The former
had to curb emissions while the latter were to be helped to adopt cleaner technologies and adapt to climate
change.
Almost two decades later, the picture has changed. China, defined as developing in 1997, is now the worlds
largest emitter of GHG. It has exceeded the US and the European Union. Although India stands at number four in
the list of the six largest emitters of GHGs, its total emissions are less than a quarter of Chinas. But more
significant than global rankings is the fact that the carbon budget, a concept that the fourth assessment on
climate change by the Intergovernmental Panel on Climate Change (IPCC) put forward last year, is precipitously
close to being consumed.
The IPCC calculated that the earths atmosphere could absorb at the most 800-880 gigatonnes of carbon dioxide
(CO2) before global warming exceeded the 2C mark. The problem is that the earth has already accumulated 530
gigatonnes of CO2, leaving only a third of this carbon budget. If the rate of emissions does not reduce drastically,
we are staring at the inevitability of a climate change precipice where the only direction in which the earth will go
is down. Against this frightening future, squabbling over global ranking is less important than finding constructive
ways to limit the consumption of this carbon budget.
This, in essence, should be the focus of the climate talks. Ideally, the discussions should be based on science.
Inevitably, it is politics that determines the ultimate outcome. For instance, in the run-up to Lima, the US and
China agreed to limits on their GHG emissions. This was interpreted as path-breaking by some and by others as a
ploy to put pressure on countries like India to do the same. China has agreed to peak its emissions by 2030 while
the US promises to reduce emissions by 28% of 2005 levels by 2025. The sceptics point out that these levels are
actually lower than what would have been required under the Kyoto Protocol and that, in any case, this bilateral
agreement is non-binding.
Despite the agreement, which the US and China had clearly hoped would influence the Lima talks, the outcome
was somewhat different. For one, the final Lima document retains the hard-fought concept of common but
differentiated responsibility (CBDR) that developing countries pushed through post-Kyoto. They had argued that
even if global warming affects everyone, the industrial economies that have contributed to the current
accumulation of GHGs in the atmosphere should be held principally responsible for mitigation as well as for
funding adaptation measures in poorer countries.
Despite the efforts by many richer countries to remove this provision, it survived. However, its meaning has been
diluted with the insertion of a new phrase, the Intended Nationally Determined Contributions (INDC), that allows
individual countries, irrespective of the extent of their emissions, to determine how far they are prepared to go.
Unlike the Kyoto Protocol, this provision provides a handy loophole for many countries from accepting binding
commitments to limit emissions.
In the end, however, whether it is CBDR or INDC, these are just so many words. In the absence of a transparent
system for monitoring GHG emissions, a treaty or protocol that has legal force to compel nations to comply with
emission limits, and shared concern for the most vulnerable countries that are already debilitated by the fallout of
global warming, they carry little meaning. GHGs know no borders; their accumulation is not constrained by
questions of sovereignty; their adverse impacts are not governed by poverty or wealth. It is unfortunate that a

January 2015

Page 85

sense of urgency and commitment to address this global crisis has been missing in international climate change
negotiations.

Findings of a study on inequalities in distribution of


wealth conducted by Oxfam
Just 80 individuals now have the same net wealth as 3.5 billion people half the entire global population. Last
year, the best-off one per cent owned 48 per cent of the worlds wealth, up from 44 per cent five years ago. On
current trends, the richest one per cent will have pocketed more than the other 99 per cent put together next year.
The 0.1 per cent has been doing even better, quadrupling their share of U.S. income since the 1980s.
This is wealth grab on a grotesque scale. For 30 years, under the rule of market fundamentalism, inequality in
income and wealth has ballooned, both between and within the large majority of countries. In Africa, the absolute
number living on less than $2 a day has doubled since 1981.
In most of the world, labours share of national income has fallen continuously and wages have stagnated under
this regime of privatisation, deregulation and low taxes on the rich. At the same time finance has sucked wealth
from the public realm into the hands of a small minority, even as it has laid waste the rest of the economy. Now
the evidence has piled up that not only is such appropriation of wealth a moral and social outrage, but it is fuelling
social and climate conflict, wars, mass migration and political corruption, stunting health and life chances and
increasing poverty.

Israel-Palestine conflict comes under ICCs watch


The recent decision of the Prosecutor of the International Criminal Court (ICC), Fatou Bensouda, to open a
preliminary examination of alleged war crimes committed during Israels military offensive on Gaza in June 2014
is once again stirring up Israel-Palestine relations, and polarising the global politics around it. This decision of the
ICC follows Palestines accession to the Rome Statute earlier this month and its acceptance of the jurisdiction of
the ICC over crimes committed in the occupied Palestinian territory, including East Jerusalem, since June 13,
2014.
Palestinian President Mahmoud Abbas as well as Hamas have welcomed this move, while Israel, which has signed
but not ratified the Rome Statute, has strongly denounced it. Until Palestine joined the ICC, Israel was principally
in favour of the Court, but is now clearly infuriated by it. Israeli Prime Minister Benjamin Netanyahu has rejected
the ICCs move outright and is lobbying with states such as Canada, Australia and Germany to withhold their
funding to it. Attempting to delegitimise the Court, Foreign Minister Avigdor Lieberman told an Israeli radio
station: This body represents no one. It is a political body There are quite a few countries that also think there
is no justification for this bodys existence. Israel has frozen tax funds it collects on behalf of Palestinians.
Some of the points of criticism against the ICC are in fact valid. These are that the juridical nature of the ICC tends
to hinder the peace process rather than build it, and that with an arguably grim record the Court has been
ineffective and slow in investigating crimes. Also, Israel claims to be fighting the war against Hamas that it
considers a terrorist organisation; so the move of the ICC, it argues, amounts to an absurdity. Such reasons,

January 2015

Page 86

although partly true, still do not trump the need for an international criminal justice system to adjudicate war
crimes.
First, the role of the ICC must be clearly understood. The ICC is not meant to be a political body mediating a peace
process; it is envisaged as a judicial body meant to end impunity and hold accountable those who have committed
the gravest of crimes. Given this, even if the ICC may harm a peace process, which in the case of Israel-Palestine is
anyway in deadlock, the politics of peace cannot prevail over justice, accountability for heinous crimes, and the
upholding of dignity, womens rights and other human rights. Second, even if the ICC is a slow and ineffective
mechanism, holding those responsible for human rights violations in war crimes is necessary. Third, the
investigation is against any person who may have committed war crimes during the conflict. So, both Hamas and
Israel would be under the ICCs investigation.

International Criminal Court


It is an intergovernmental organization and international tribunal that sits in The Hague in the Netherlands. The
ICC has the jurisdiction to prosecute individuals for genocide, crimes against humanity, and war crimes. The ICC
is intended to complement existing national judicial systems and it may therefore only exercise its jurisdiction
when certain conditions are met, such as when national courts are unwilling or unable to prosecute criminals or
when the United Nations Security Council or individual states refer investigations to the Court. The ICC began
functioning on 1 July 2002, the date that the Rome Statute entered into force. The Rome Statute is a multilateral
treaty which serves as the ICC's foundational and governing document. States which become party to the Rome
Statute, by ratifying it, become member states of the ICC.
Structure
The ICC has four principal organs: the Presidency, the Judicial Divisions, the Office of the Prosecutor, and the
Registry. The President is the most senior judge chosen by his or her peers in the Judicial Division, which hears
cases before the Court. The Office of the Prosecutor is headed by the Prosecutor who investigates crimes and
initiates proceedings before the Judicial Division. The Registry is headed by the Registrar and is charged with
managing all the administrative functions of the ICC, including the headquarters, detention union, and public
defense office.
So far 36 individuals have been indicted in the ICC, including Ugandan rebel leader Joseph Kony, Sudanese
president Omar al-Bashir, Kenyan president Uhuru Kenyatta, Libyan leader Muammar Gaddafi, and Ivorian
president Laurent Gbagbo. Since all of the official investigations have been in Africa, the Office of the Prosecutor
has been accused of selective enforcement and Western imperialism towards African countries.
Membership
As of January 2015, 123 states are parties to the Statute of the Court. A further 31 countries have signed but
not ratified the Rome Statute. The law of treaties obliges these states to refrain from "acts which would defeat the
object and purpose" of the treaty until they declare they do not intend to become a party to the treaty. Three
signatory statesIsrael, Sudan and the United Stateshave informed the UN Secretary General that they no
longer intend to become states parties and, as such, have no legal obligations arising from their former
representatives' signature of the Statute. 41 United Nations member states have neither signed nor acceded to the
Rome Statute; some of them, including China and India, are critical of the Court. Palestine, a UN observer state,
acceded to the Statute on 2 January 2015, which will enter into force for them on 1 April 2015. Additionally,
Ukraine, a non-ratifying signatory, has accepted the Court's jurisdiction for a limited period in 2013-2014.

January 2015

Page 87

Jurisdiction
There are three jurisdictional requirements in the Rome Statute that must be met before a case may begin against
an individual. The requirements are (1) subject-matter jurisdiction (what acts constitute crimes), (2) territorial or
personal jurisdiction (where the crimes were committed or who committed them), and (3) temporal jurisdiction
(when the crimes were committed).
Subject-matter jurisdiction - The Court's subject-matter jurisdiction is the crimes for which individuals can
be prosecuted. Individuals can only be prosecuted for crimes that are listed in the Statute. The primary crimes are
listed in article 5 of the Statute: genocide, crimes against humanity, war crimes, and crimes of aggression.
Territorial or personal jurisdiction - For an individual to be prosecuted by the Court either territorial
jurisdiction or personal jurisdiction must exist. Therefore an individual can only be prosecuted if he or she has
either (1) committed a crime within the territorial jurisdiction of the Court or (2) committed a crime while a
national of a state that is within the territorial jurisdiction of the Court.
Temporal jurisdiction - Temporal jurisdiction is the time period over which the Court can exercise its powers.
No statute of limitations applies to any of the crimes defined in the Statute. However, the Court's jurisdiction is
not completely retroactive. Individuals can only be prosecuted for crimes that took place on or after 1 July 2002,
which is the date that the Rome Statute entered into force. However, if a state became party to the Statute, and
therefore a member of the Court, after 1 July 2002, then the Court cannot exercise jurisdiction prior to that date
for certain cases. For example, if the Statute entered into force for a state on 1 January 2003, the Court could only
exercise temporal jurisdiction over crimes that took place in that state or were committed by a national of that
state on or after 1 January 2003.
Over the last decade as the court has gotten up-and-running, it has made significant headway in putting
international justice on the map, giving rise to increased expectations wherever the worlds worst crimes occur.
This was poignantly demonstrated by the signs held by Syrian anti-government protesters that read Assad to The
Hague, a reference to abuses of the countrys president. But while the ICC is now the primary address for
international criminal accountability, its daunting mandate and world-wide reach have made the flaws in its
workings more visible.
The governments on which the ICC depends to carry out its
mandate have been inconsistent in their support, particularly when
it comes to arrests. In June 2012, Fatou Bensouda was sworn in as
the courts new head prosecutor. Arrest warrants are pending for
suspects in the Libya, Sudan, Uganda, Cote dIvoire, and Congo
investigations. The court and its member countries face major
challenges in meeting expanded expectations for the court in its
second decade.

A Synopsis of the Israel/Palestine Conflict


The three regions on the map (Israel, Gaza, and the West Bank)
were once known as Palestine. Ownership of the land is disputed
primarily between two different groups: Israeli Jews and
Palestinian Arabs.
The Gaza Strip is a region along the Mediterranean coast between
Israel and Egypt. The majority of its approximately 1.4 million
residents are Palestinian refugees, many of whom have been living

January 2015

Page 88

in refugee camps for decades.


The West Bank is a chunk of land east of Israel. It is home to 2.6 million Palestinians, and would make up the
heart of any Palestinian state. Israel took control of it in 1967 and has allowed Jewish settlers to move in, but
Palestinians (and most of the international community) consider it illegally occupied Palestinian land.
Palestine was a common name used until 1948 to describe the geographic region between the Mediterranean Sea
and the Jordan River. In history, the Assyrian, Babylonian, Roman, Byzantine, and Ottoman empires have
controlled Palestine at one time or another.
After World War I, Palestine was administered by the United Kingdom under a Mandate received in 1922 from the
League of Nations. The modern history of Palestine begins with the termination of the British Mandate, the
Partition of Palestine and the creation of Israel, and the ensuing Israeli-Palestinian conflict.
The Partition of Palestine
In 1947, the United Nations (U.N.) proposed a Partition Plan for Palestine titled United Nations General
Assembly Resolution 181 (II) Future Government of Palestine. The resolution noted Britains planned
termination of the British Mandate for Palestine and recommended the partition of Palestine into two states, one
Jewish and one Arab, with the Jerusalem-Bethlehem area protected and administered by the United Nations.
The resolution included a highly detailed description of the recommended boundaries for each proposed state.
The resolution also contained plans for an economic union between the proposed states and for the protection of
religious and minority rights. The resolution called for the withdrawal of British forces and termination of the
Mandate by August 1948 and establishment of the new independent states by October 1948.
First Arab-Israeli War (1948)
Jewish leadership accepted the Partition Plan but Arab leaders rejected it. The Arab League threatened to take
military measures to prevent the partition of Palestine and to ensure the national rights of the Palestinian Arab
population. One day before the British Mandate expired, Israel declared its independence within the borders of
the Jewish State set out in the Partition Plan. The Arab countries declared war on the newly formed State of Israel
beginning the 1948 Arab-Israeli War.
After the war, which Palestinians call the Catastrophe, the 1949 Armistice Agreements established the separation
lines between the combatants: Israel controlled some areas designated for the Arab state under the Partition Plan,
Transjordan controlled the West Bank and East Jerusalem, and Egypt controlled the Gaza Strip.
The Six Day War
The Six Day War was fought between June 510, 1967, with Israel emerging victorious and effectively seizing
control of the Gaza Strip and the Sinai Peninsula from Egypt, the West Bank and East Jerusalem from Jordan, and
the Golan Heights from Syria. The U.N. Security Council adopted Resolution 242, the land for peace formula,
which called for Israeli withdrawal from territories occupied in 1967 and the termination of all claims or states
of belligerency. Resolution 242 recognized the right of every state in the area to live in peace within secure and
recognized boundaries free from threats or acts of force.
The 1973 War
In October 1973, war broke out again between Israel and Egypt in the Sinai and with Syria in the Golan Heights. A
ceasefire was achieved (U.N. resolution 339) and U.N. peacekeepers deployed on both the fronts, only
withdrawing from the Egyptian front after Israel and Egypt concluded a peace treaty in 1979. U.N. peacekeepers
remain deployed in the Golan Heights.

January 2015

Page 89

Rise of the Palestine Liberation Organization (PLO)


In 1974, the Arab League recognized the Palestine Liberation Organization (PLO) as the sole legitimate
representative of the Palestinian people and relinquished its role as representative of the West Bank. The PLO
gained observer status at the U.N. General Assembly the same year.
In 1988, the Palestinian National Council of the PLO approved a Palestinian Declaration of Independence in
Algiers, Tunisia. The declaration proclaims a State of Palestine on our Palestinian territory with its capital
Jerusalem, although it does not specify exact borders, and asserts U.N. Resolution 181 supports the rights of
Palestinians and Palestine. The declaration was accompanied by a PLO call for multilateral negotiations on the
basis of U.N. Resolution 242.
The Intifada (1987 to 1993)
Conditions in the West Bank and Gaza Strip, including Jerusalem, after more than 20 years of military
occupation, repression and confiscation of land, contributed to a Palestinian uprising called the intifada in
December 1987. Between 1987 and 1993, over 1,000 Palestinians were killed and thousands injured, detained,
imprisoned in Israel or deported from the Palestinian territories.
The peace process
In 1993, the Oslo Accords, the first direct, face-to-face agreement between Israel and the PLO, were signed and
intended to provide a framework for the future relations between the two parties. The Accords created the
Palestinian National Authority (PNA) with responsibility for the administration of the territory under its control.
The Accords also called for the withdrawal of Israeli forces from parts of the Gaza Strip and West Bank.
Implementation of the Oslo Accords suffered a serious setback with the assassination of Yitzhak Rabin, Israeli
Prime Minister and signatory of the Oslo Accords, in November 1995. Since 1995, several peace summits and
proposals, including the Camp David Summit (2000), Taba Summit (2001), the Road Map for Peace (2002), and
the Arab Peace Initiative (2002 and 2007), have attempted to broker a solution, with no success.
The drive for recognition of Palestinian statehood
In a speech on September 16, 2011, Mahmoud Abbas, President of the Palestinian National Authority, declared his
intention to proceed with the request for recognition of statehood from both the United Nations General Assembly
and Security Council. On September 23, 2011, President Abbas delivered the official application for recognition of
a Palestinian State to the United Nations Secretary General. Numerous issues remain to be settled by Israelis and
Palestinians, however, before an independent state of Palestine emerges. Negotiations are ongoing
The border between Israel and the West Bank would probably have to change in any peace deal. There are about
500,000 Jewish settlers living in the West Bank, many of whom live near the border with Israel. In a two-state
deal, some of these settlers would have to leave the West Bank while some border settlements would become
Israeli land. In exchange, Israel would give over some of its territory to Palestine. These would be called "land
swaps." No set of Israeli and Palestinian leaders has agreed on precisely where to draw the border.

January 2015

Page 90

Quantitative Easing in Europe


In a last ditch attempt to rescue the Eurozone from a deflationary spiral inflation was minus 0.2 per cent in
December and the unemployment rate is 11.5 per cent the European Central Bank (ECB) announced an openended government bond buying programme. Mario Draghi, president of the ECB, announced on Thursday that it
would buy 60 billion euros of bonds each month until September 2016. But crucially, Draghi added that the
programme would remain in place until we see a sustained adjustment in the path of inflation which is consistent
with our aim of achieving inflation rates below, but close to, 2 per cent.
Draghis public commitment to near-2 per cent inflation is an important signal and might go some way in
breaking deflationary expectations. In the coming days, the euro is likely to weaken this is a good thing for
exports and spurring inflation and sovereign bond yields will fall further leading to an adjustment of financial
portfolios towards more risky assets. Greece, whose yields have, in fact, risen due to political uncertainty, and
which goes to the polls on Sunday, is the exception.
While the programme is bigger than expected and must have taken some nimble negotiation, the ECBs
announcement seems a few months too late. It is also complicated by involved risk-sharing across the national
central banks of the Eurozone and the reliance of European firms on bank finance, rather than capital markets.
While better late than never, its success compared to QE programmes in the US and the UK remains to be seen.
But Draghis announcement could be a boon for the Narendra Modi government. While the UPA had to contend
with high inflation and external vulnerability due to the imminent tapering of the US Federal Reserves QE
programme, the NDA has been lucky with global oil and commodity prices and their effect on moderating
inflation. And now, with the ECBs QE programme effectively neutralising the Feds bond-buying wind-down, it
holds out the assurance of continuing comfortable global liquidity and money streaming into Indian capital
markets. This is not just because India is not a commodity exporter but also because it seems more comfortably
placed, with brighter growth prospects than its emerging market peers. But there is no room for complacency.
Sentiment may have returned to the market but the investment cycle has not yet restarted. All eyes are on the
Union budget. The Centre must start by rationalising the subsidy regime and bringing the GST.

January 2015

Page 91

FRONTLINE

Pakistani Taliban
The Pakistani Taliban was never a unified group. It was founded in 2007 by Behtullah Mehsud and those within
its ranks were mainly fighters who were with the Taliban and earlier with the U.S.-supported jehadi groups
fighting the Afghanistan government in the 1970s and 1980s. They fled to Pakistan after the U.S. invasion of
Afghanistan in 2001. Joining them in their exodus were Chechen, Uzbek and Uyghur fighters and members of Al
Qaeda and other extremist, separatist groups. With the U.S. authorising increasing drone attacks on Al Qaeda and
Taliban sanctuaries in Pakistans tribal areas and Pakistani military bases being used for these launches, many in
the Tehereek-e-Taliban Pakistan (TTP), or Pakistani Taliban, turned violently against their erstwhile sponsors and
patrons. The TTP comprises several factions.
According to Pakistani estimates, 50 to 60 per cent of those killed in American drone attacks were civilians and
this in turn resulted in higher recruitment for militant groups. Widespread U.S. drone attacks contributed to the
anti-American feelings in Pakistan and weakened the cooperation between the two countries in counterterrorism
operations.
A double game
U.S. and Indian officials have been accusing Pakistan of playing a double game by taking U.S. aid money and
weaponry while supporting and encouraging various Taliban and other extremist groups such as the LeT to
destabilise neighbouring Afghanistan and India. They accuse the Pakistani security establishment of glossing over
the danger posed by these groups to the government in Islamabad.

January 2015

Page 92

Former Afghanistan President Hamid Karzai openly accused Pakistan of supporting the Afghan Taliban and
facilitating terror attacks. It is not a secret that many in the top Afghan Taliban leadership, including its leader
Mullah Omar, are protected by Pakistani intelligence services. Al Qaeda leader Osama bin Laden must have had
the help of sections of the Pakistani intelligence apparatus to go on living for years in a house in Abbottabad,
located next to a military base.
The flamboyant Hakimullah, who succeeded Baitullah
Mehsud as the leader of the Haqqani group, was eliminated
in a drone strike in November 2013

The Haqqani group has been responsible for staging


attacks in Afghanistan in coordination with the Taliban
there. The LeT and some other groups have been held
responsible for terror attacks in India, including the 2008
Mumbai terror attack, the worst in Indian history. Both
the Haqqani group and the LeT are said to be close to the
Pakistani security establishment. The LeT is on the
banned list of organisations in Pakistan but it has
resurfaced as the Jamaat-ud-Dawa (JuD). LeT leader
Hafiz Sayeed was quick to make the outlandish claim that
India was involved in the Peshawar bloodbath. A few days
after the Peshawar incident, an anti-terrorism court in
Pakistan granted bail to Zaki-ur-Rehman Lakhvi, who is
alleged to have played a key role in planning the Mumbai
attack. The decision has come in for scathing criticism in
India.
What the U.S. sowed
It was arm-twisting by the Obama administration that
made the Pakistan Army launch its all-out assault on the
militant groups in the tribal areas in June 2014. For the
first time, the Pakistan Air Force was deployed extensively
to target militant hideouts. A lot of collateral damage, in
the form of civilian casualties, resulted in the wake of the military assault in North Waziristan. Many analysts, in
fact, are of the view that the formation of the Pakistani Taliban was in response to the first military assault
ordered by the then military ruler, Gen. Pervez Musharraf, in the Federally Administered Tribal Areas (FATA) in
2004. FATA is an area of 27,270 square kilometres, but this small territory hosts around 45,000 fighters from
many militant groups, including the Afghan Taliban, the Islamic Movement of Uzbekistan, Al Qaeda, Jaish-eMohammed, the LeT and the Pakistani Taliban.
Public opinion surveys have consistently shown that the majority in Pakistan are of the view that it was the U.S.
invasion of Afghanistan in 2001 that led to the rise of terrorism in their country. The cycle of violence and
terrorism can be traced back to the tight security embrace between the U.S. and Pakistan, which dates back to the
days of the Cold War. In the 1980s, the U.S. played a key role along with its proxies such as Saudi Arabia in
arming and training the Mujahideen forces in Pakistan to fight against the Soviet-backed progressive
government that was in place in Afghanistan at the time. Out of the mujahideen emerged the rapacious militias
controlled by warlords and the Taliban in Afghanistan. The Taliban itself was formed with the covert backing of
the Central Intelligence Agency (CIA) and the ISI.
Despite the recent events, it will be difficult for the Pakistani political establishment to distance itself from the
mainstream Taliban in Afghanistan. Pakistan still adheres to its doctrine of depth and views the Afghan Taliban

January 2015

Page 93

as a strategic asset. Pakistan does not want countries such as India and Iran to have too much influence in
Afghanistan.
The Afghan Taliban led by Mullah Omar looks destined to play an important role in Afghanistans politics after the
departure of the U.S. forces from that country by the end of 2014. Already, they have made steady advances on the
ground. Islamabad wants the good Afghan Taliban to share power with other stakeholders in the postoccupation scenario in Kabul. This view also, until recently, had the support of the Obama administration.
The Afghan Taliban has repeatedly criticised the attacks on Pakistans armed forces on previous occasions. The
Afghan Taliban, as of now, is not against the goal of overthrowing the Pakistani state. The TTP and other Pakistani
Taliban groups reject the Constitution of Pakistan and want the introduction of Sharia.

Mullah Fazlullah, the leader of the main Taliban


group that claimed responsibility for the Peshawar
school attack, was little known within the militant
ranks until he launched an FM radio station a
decade ago to broadcast his extremist propaganda in
the lawless tribal belt along the Afghan border.
Fazlullah is not an established Islamic cleric but was
given the title of 'Mullah' by his followers for being
the son-in-law of Sufi Muhammad, a cleric who
founded Islamist militancy in the northwestern Swat
Valley in the early 1990s. When Muhammad
announced jihad against America after its invasion
of Afghanistan in 2001, Fazlullah was tasked to
mobilise and send volunteers across the border to
join the Taliban in their fight against US-led forces. Fazlullah became a symbol of terror in Swat and nearby areas
when he started delivering fiery speeches on his illegal FM station, issuing threats against government officials,
girl students and women health workers involved in polio immunisation campaigns.
Nicknamed "Radio Mullah", he used his radio station to call his men to arms in 2007 to avenge the military
operation against Islamist militants holed up in Islamabad's Lal Masjid or Red Mosque. His men soon turned
Swat into a Taliban bastion until they were evicted by the military in 2009. Pakistani officials say he fled to
Afghanistan after losing control of Swat and is now orchestrating attacks from across the border.
Notorious for his ferocity and ruthlessness, Fazlullah was chosen last year to lead Tehrik-i-Taliban Pakistan, a
loose alliance of about a dozen militant groups, after the killing of Hakimullah Mehsud in a US drone strike. He
has appeared in various videos, wielding knives and guns as soldiers are slaughtered in the background. He
claimed responsibility for ordering the 2012 attack on Malala Yousafzai for championing the cause of girls'
education, which is vehemently opposed by the militants.

January 2015

Page 94

January 2015

Page 95

India-Russia summit 2014


Russian President Vladimir Putin was in New Delhi in the second week of December to participate in the IndiaRussia summit. The summit, held alternatively in the Indian and Russian capitals, has become an annual event
since 2000. President Putin and Prime Minister Atal Bihari Vajpayee signed the historic Declaration on Strategic
Partnership that year. Though Putin was in the Indian capital for only a day, the 2014 summit has yielded a raft of
substantive agreements.
In view of the open hostility exhibited by the West, Moscow has pivoted its attention to the East. In recent
months, Russia has signed huge energy deals with countries such as China and Turkey. The energy deals worth
around $800 billion with China will see 30 billion cubic metres of Russian gas being sold annually to that country.
During a visit to Turkey in the first week of December, Putin announced the cancellation of the South Stream
gas pipeline project that would have supplied Russian gas to southern Europe. Instead, Russia has signed a
groundbreaking deal with Turkey under which Russian gas will now be routed through Turkey to the European
and Asian markets, sidestepping the European Union (E.U.). Important E.U. nations such as Germany and Italy
are dependent on gas from Russia to keep their economies ticking.
Energy sales by Russia to China and Turkey will be much below the current market prices. Southern Europe, on
the other hand, will have to pay 30 per cent more to source its gas from other sources after the surprise
announcement of the cancellation of the South Stream project. Turkeys coming on board also means that the
Turkish government has now started looking East for political and economic succour. Turkey is a member of the
North Atlantic Treaty Organisation (NATO) and has been waiting in line for decades to become a full-fledged E.U.
member.
Reliable partner
Putin, from all available indications, seems to have got an assurance from the new Indian government that it will
not side with the West on the Ukraine issue and its policy of imposing unilateral sanctions on countries. Prime
Minister Narendra Modi assured the Russian President in New Delhi that India would continue to be a time
tested and reliable partner of Russia. He recalled the steadfast support of the Russian people during the
difficult moments of the countrys history. He reiterated Indias commitment to stand by Russia through its
own challenges.
The joint vision document released during the Putin visit stated that both countries did not recognise the
unilateral economic sanctions imposed on Russia by some countries without the approval of the United Nations.
New Delhi did not object to the presence of the Crimean Prime Minister, Sergey Aksyonov, in the Russian
Presidents delegation. Putin has thanked the Indian government for supporting Russias legitimate claim to the
Crimean peninsula.
Defence deals
To further gladden Russian hearts, Modi pledged that Russia would continue to remain the countrys most
important defence partner even if Indias options have increased. Russia was not too happy with the huge
defence orders India had placed in recent years with the U.S., France and Israel. Russian officials feel that they
were not given a level playing field. America is fast closing the gap with Russia in the supply of military hardware
to India. Israel and France also bagged big defence deals during the 10-year rule of the United Progressive
Alliance.
Speaking to the media just ahead of Putins visit, the Russian Ambassador said that Russia was the first country to
implement a make in India policy in the field of defence production. He said that today even the SU-30s, the

January 2015

Page 96

backbone of the Indian Air Force, were made in India. The Russian side has agreed to produce Mi-17 medium
lift and Ka-226 light utility helicopters in India in partnership with an Indian firm.
Russia has indicated that it would like to locate other aerospace projects too in India. Russia has offered to
produce civilian passenger planes. The two sides have agreed to move ahead on the long-delayed projects to
jointly develop a fifth-generation fighter jet and a multi-role transport aircraft. Russian officials said that Indias
Act East policy would open newer vistas for cooperation between the two countries. Russia considers itself a
Eurasian country. Much of its land mass is in Asia.
Before Putins visit, the Indian side had signalled its displeasure on the Russian governments willingness to sell
military hardware to Pakistan. Russian Defence Minister Sergei Shoigu was in Islamabad in November. This was
the first-ever visit by a Russian Defence Minister to the country to sign a military cooperation agreement. The
Russian Ambassador to India has claimed that no firm deal has been struck with Pakistan for the sale of military
helicopters. Until recently, Russia, in deference to the wishes of its close strategic ally India, had abstained from
selling arms to Pakistan. But with India sidelining Russia and going in for multibillion dollar deals with the West
and Israel, there evidently has been a rethink in Moscow.
From the Indian point of view, the most important takeaway from the Putin visit was the announcement that
Russia would be constructing an additional 12 new nuclear reactors in the country by 2035. Russia will start by
building two more nuclear reactors in Kudankulam, Tamil Nadu, by 2016. This is in addition to the two reactors
that are expected to go on stream very soon.
The Russian side, in fact, was ready to build up to 24 nuclear reactors in India, but the Indian side wants to keep
the lucrative contracts for nuclear reactors to be shared by some of its other strategic partners like the U.S.,
France and Japan. But unlike these three countries, Russia has not made much of a fuss about Indias nuclear
liability law though the Russians too would like the law to be either scrapped or diluted.
Another key agreement inked during Putins visit was the $2.1 billion deal to directly source raw diamonds from
Russia. India is the biggest manufacturer of cut and polished diamonds. Gujarat is the centre of Indias diamond
industry and the businessmen in the State will be the major gainers from the deal.
A modest agreement between Indias Essar and Russias Rosneft was signed for the long-term supply of 10 million
tonnes of crude oil at a concessional rate. Negotiations are on for oil and gas exploration projects by the Oil and
Natural Gas Corporation (ONGC) in the Arctic region and East Siberia. More than 60 per cent of Indias oil
imports are sourced from West Asia. The quantity imported from Russia is less than 1 per cent. There is a need for
India to diversify its sources as the demand for energy rises domestically.
Both sides agreed on the urgency to boost bilateral trade, which languishes at a paltry $10 billion annually. To
boost trade and investment, the Russian side has liberalised visa rules for Indian businessmen and professionals.
To facilitate investment growth, the two countries are working out modalities for rupee-rouble trade. The BRICS
(Brazil, Russia, India, China and South Africa) countries have agreed in principle to bypass the U.S. dollar and
trade mainly in their own currencies.

January 2015

Page 97

Reservations in Education and Employment


It is the process of setting aside a certain percentage of seats (vacancies) in government institutions and jobs for
members of backward and under-represented communities (defined primarily by caste and tribe). Reservation is a
form of quota-based affirmative action. Reservation is governed by constitutional laws, statutory laws, and local
rules and regulations. Scheduled Castes (SC), Scheduled Tribes (ST) and Other Backward Classes (OBC) are the
primary beneficiaries of the reservation policies under the Constitution with the object of ensuring a "level"
playing field.
The primary stated objective of the Indian reservation system is to increase
the opportunities for enhanced social and educational status of the
underprivileged communities and thus uplift their lifestyle to have their
place in the mainstream of Indian society. The reservation system exists to
provide opportunities for the members of the Scheduled Castes and
Scheduled Tribes to increase their political representation in the State
Legislatures, the Executive Organ of the Union (Centre) and States,
the labour force, schools, colleges, and other public institutions.
The Constitution of India states in Article 16(4): Nothing in Article 16 shall
prevent the State from making any provision for the reservation of
appointments or posts in favour of any backward class of citizens which in
the opinion of the State, is not adequately represented in the services under
the state." Article 46 of the Constitution states that "The State shall
promote with special care the educational and economic interests of the
weaker sections of the people, and, in particular, of the Scheduled Castes and the Scheduled Tribes, and shall
protect them from social injustice and all forms of exploitation."
Reservations in public services and educational institutions were created with a view to giving a share to the
members of society who had been denied opportunities in the past. Immediately after the adoption of the
constitution, the provision of reservation under Article 16 was challenged through a writ petition filed in the
Madras High Court (State of Madras vs Champakam Dorairajan, April 1951). The case came before the Supreme
Court of India. It was held that the communal government order of the Madras government fixing the proportion
of students of each community that could be admitted to state educational institutions was ultra vires under
Article 29(2) (which states that no citizen shall be denied admission into any educational institution maintained
by or receiving aid from the state on grounds only of religion, race, caste, or language) and was not saved by the
provisions of Article 16. There was considerable protest in the southern states as the result of which the
Constitution was amended for the first time, and Clause 15(4) added:
Article 15(4): nothing in this article or in Clause (2) of Article 29 shall prevent the state from making any special
provision for the advancement of any socially and educationally backward classes of citizens or for the scheduled
castes and scheduled tribes.
Reservation in Public Employment and Promotions
Mandal commission was established in India in 1979 with a mandate to identify the socially or educationally
backward, based on additional parameters. The commission brought in 11 socio-economic and educational
indicators to determine backwardness and introduced the term Other Backward Classes (OBC), as a yet
another class distinction in the country. The commissions report of 1980 recommended that for accommodating
the OBC class, the reservation quotas might be increased from the erstwhile 27 per cent to 49.5 per cent.
In 1990, Prime Minister V. P. Singh announced that 27% of government positions would be set aside for OBCs in
addition to the 22.5% already set aside for the SCs and STs.

January 2015

Page 98

The Government of India on 22nd December 2011 announced establishment of a sub-quota of 4.5% for minorities
within the existing 27% reservation for Other Backward Classes. The reasoning given was
that Muslim communities that have been granted OBC status are unable to compete with Hindu OBC
communities. On 28 May 2012, the Andhra Pradesh High Court quashed the sub-quota. The court said that the
sub-quota has been carved out only on religious lines and not on any other intelligible basis. The court criticised
the decision: "In fact, we must express our anguish at the rather casual manner in which the entire issue has been
taken up by the central
government."
The Supreme Court, in its
16th
November
1992
judgment in the Indra
Sawhney case, ruled that
reservations in promotions
are unconstitutional, but
allowed its continuation for
5 years as a special case. In
1995, 77th amendment to
the Constitution was made
to insert clause (4A) Article
16 {Equality of opportunity
in matters of public
employment} before the
five-year period expired to
continue with reservations
for SC/STs in promotions.
Clause 4A: Nothing in this article shall prevent the State from making any provision for reservation in matters
of promotion to any class or classes of posts in the services under the State in favour of the Scheduled Castes and
the Scheduled Tribes which, in the opinion of the State, are not adequately represented in the services under the
State."
Clause (4A) was further modified through the 85th amendment to give the benefit of consequential seniority to
SC/ST candidates promoted by reservation.
The 81st amendment was made to the Constitution that inserted clause (4B) in Article 16 to permit the
government to treat the backlog of reserved vacancies as a separate and distinct group, to which the limit of 50
percent ceiling on reservation may not apply. The 82nd amendment inserted a provision in Article 335 to enable
states to give concessions to SC/ST candidates in promotion.
Article 335: The claims of the members of the Scheduled Castes and the Scheduled Tribes shall be taken into
consideration, consistently with the maintenance of efficiency of administration, in the making of appointments to
services and posts in connection with the affairs of the Union or of a State
82nd amendment added to Article 335: "Provided that nothing in this article shall prevent in making of any
provision in favour of the members of the Scheduled Castes and the Scheduled Tribes for relaxation in qualifying
marks in any examination or lowering the standards of evaluation, for reservation in matters of promotion to any
class or classes of services or posts in connection with the affairs of the Union or of a State".
The validity of all the above four amendments i.e. 77th, 81st, 82nd and 85th was challenged in the Supreme Court
through various petitions clubbed together in M. Nagaraj & Others vs. Union of India & Others, mainly on the
ground that these altered the Basic Structure of the Constitution.

January 2015

Page 99

On 19th October 2006, the Supreme Court upheld these four amendments but stipulated that the concerned state
will have to show, in each case, the existence of compelling reasons which include backwardness, inadequacy of
representation and overall administrative efficiency, before making provisions for reservation. The court further
held that these provisions are merely enabling provisions. If a state government wishes to make provisions for
reservation to SC/STs in promotion, the state has to collect quantifiable data showing backwardness of the class
and inadequacy of representation of that class.
In 2007, Government of Uttar Pradesh introduced reservation in promotions. The policy specified reservation for
SC/ST employees in the first stage of their promotion and that of the benefit of consequential seniority in
successive promotions. However, this policy was challenged through a spate of petitions and
subsequently Allahabad High Court on 4 January 2011 struck down the policy terming it as unconstitutional.
The Allahabad High Court verdict was challenged in the Supreme Court through various petitions. The Supreme
Court on 27 April 2012, upheld the high court judgement. The court rejected the government's argument on the
ground that it failed to furnish sufficient valid data to justify the move to promote employees on caste basis.
The apex court reiterated the law laid down through various judgements by the Constitution benches in the M
Nagaraj, Indra Sawhney and other cases wherein it was declared that reservation in promotions can be
provided only if there is sufficient data and evidence to justify the need.
Reservation in Education
Scheduled Castes (SC) and Tribes constitute approximately 22.5% of the countrys population. Accordingly, a prorata reservation of 22.5% (SC 15% and ST 7.5%) has been made for them in educational institutions which come
under the administrative control of the Ministry of Human Resource Development and other Central Ministries.
Similar reservations, directly proportional to their population, have also been provided by the State Governments
and Union Territory Administrations. SC and ST students are also entitled to relaxation in respect of the upper
age limit (generally 5 years) as well as concession of lower cut-off qualifying marks (5-10%).
Besides reservation for SC and ST Candidates, seats are also reserved for other categories of the backward
community (OBC). In 1978, the Second Backward Classes Commission under the Chairmanship of B.P. Mandal
was set up. The Commission, which submitted its report in 1980, recommended the reservation of 27% of the
seats in all scientific, technical and professional institutions run by the Central as well as State Governments for
other backward communities (OBCs).
In 2007, the Central Government proposed an additional 27% reservation for the other backward classes in
educational institutions. The said move was sought to be justified by the central government as being an extended
policy to achieve the goals under the Directive Principles of State Policy and in Particular the goals as defined
under Article 38 of the Indian Constitution.
93rd constitutional amendment act: the amendment added clause 5 to article 15 of the constitution and
provides for reservations of seats in favour of socially and educationally backward classes of citizens, the
Scheduled Castes and the Scheduled Tribes in their admission to private educational institutions (both aided and
unaided by the state) other than the minority educational institutions.
Definition of Scheduled Castes and Tribes according to the Indian constitution
Article 341:
1. The President may with respect to any State or Union Territory, and where it is a State, after consultation with
the Governor thereof, by public notification, specify the castes, races or tribes or parts of or groups within
castes, races or tribes which shall for the purposes of this Constitution be deemed to be Scheduled Castes in
relation to that State or Union Territory, as the case may be.

January 2015

Page 100

2. Parliament may by law include in or exclude from the list of Scheduled Castes specified in a notification issued
under clause (1) any caste, race or tribe or part of or group within any caste, race or tribe, but save as aforesaid
a notification issued under the said clause shall not be varied by any subsequent notification.
After promulgation of the Constitution, in exercise of powers conferred by clause (1) of Article 341 of the
Constitution, the President has made six Presidential Orders between 1950 and 1978, for specifying castes as
Scheduled Castes in relation to various States/Union Territories. These orders have been amended from time to
time.
Article 342 of the constitution gives similar powers to the President regarding notification of Scheduled Tribes.
The first specification of Scheduled Tribes in relation to a particular State/ Union Territory is by a notified order
of the President, after consultation with the State governments concerned. These orders can be modified
subsequently only through an Act of Parliament. Article 342 provides for listing of scheduled tribes State/Union
Territory wise and not on an all India basis.
The criterion followed for specification of a community, as scheduled tribes are indications of primitive traits,
distinctive culture, geographical isolation, shyness of contact with the community at large, and backwardness.
This criterion is not spelt out in the Constitution but has become well established.
In exercise of the powers conferred by Clause (1) of Article 342 of the Constitution of India, the President, after
Consultation with the State Governments concerned has so far promulgated 9 orders specifying the Scheduled
Tribes in relation to the state and union territories.

Assam Violence
In December 2014, a series of attacks by militants resulted in deaths of more than 76 in Assam. The attacks took
place in Chirang, Sonitpur and Kokrajhar districts, on 23 December 2014. They have been attributed to the
Songbijit faction of National Democratic Front of Bodoland NDFB(S).
The tribal people are mostly tea plantation workers; some of them are the descendants of labourers brought to
Assam by the British colonial rulers, while others are relatively recent migrants from other parts of India. The
NDFB claims to represent the Bodo
people, who are native to Assam; it has
fought a secessionist war with the
government for the establishment of a
sovereign Bodoland. Although a number
of NDFB militants had agreed to
ceasefire and peace talks in 2000s, the
NDFB(S) faction led by I K Songbijit has
refused to give up militancy.
In May 2014, the government had
attributed a similar attack on Muslim
migrants to NDFB(S). The December
attacks, described as one of the worst
massacres in the history of North-East
India, led to widespread protests by
tribal people. The protests turned
Adivasi families flee their homes after militants attack Tenganala village
in Sonitpur district of Assam on December 24

January 2015

violent leading to death of three more in


police firing. The tribal people also

Page 101

killed fourteen Bodos in retaliation. On 26 December, the Government of India declared the launch of Operation
All Out to eliminate the Bodo militants and deployed as many as 9,000 soldiers of the Indian Army and
the Central Reserve Police Force.
The Adivasi Cobra Military of Assam (ACMA), the Adivasi Peoples Army (APA), the Santhali Tiger Force (STF),
the Birsa Commando Force (BCF) and the All Adivasi National Liberation Army (AANLA), five insurgent outfits
fighting for Scheduled Tribe (S.T.) status for Adivasis and claiming to be fighting for the cause of the community,
signed an SoO (Suspension of Operation)Agreement with the Centre and the Assam government and surrendered
their arms on January 24, 2012, to join the peace process.
Bodos are the largest plains tribe of Assam. Adivasis are demanding S.T. status. Koch-Rajbangshis, Morans,
Mataks, Tai-Ahoms and Chutias are the other five communities that have been agitating for inclusion on the
States S.T. list.
The violence that occurred in the last week of December and the consequent displacement of village residents
brought two pertinent issues to the forethe recognition of Adivasis, including the tea-tribe and ex-tea-tribe
communities in Assam as S.Ts and granting land rights under the S.T. and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act to Adivasi and Bodo forest dwellers in denuded forest areas.
Recognising Adivasis as a Scheduled Tribe will have wider political ramifications in the BTAD (Bodoland
Territorial Area District) than anywhere else in the State. The Bodoland Territorial Council (BTC), which runs the
administration in the four BTAD districts of Kokrajhar, Chirang, Baksa and Udalguri, was constituted under the
amended provisions of the Sixth Schedule of the Constitution, and, as such, political rights such as reservation of
the council seats are enjoyed exclusively by the S.Ts.
Bodo leaders are concerned that granting S.T. status to Adivasis and Koch-Rajbangshis will offset the political
equilibrium in the BTC and take away the political rights Bodos have enjoyed following the creation of the
autonomous territorial tribal council in lieu of a separate State.
Thirty-four of the 40 seats in the BTC are reserved for S.Ts and five seats for non-S.Ts, and one seat is unreserved.
In addition to the elected members, the State government nominates six members. In the BTAD, Bodos form the
largest S.T. group and, therefore, have been ruling the tribal council since its inception in 2003.
The Kokrajhar (Reserved) Lok Sabha constituency, comprising areas under the BTAD and some adjoining areas,
elected a non-Bodo candidate for the first time in the 2014 elections. A former commander of the insurgent
United Liberation Front of Asom (ULFA), Naba Kumar Sarania (Hira), contested as an independent candidate
and was backed by the Sanmilita Janagosthiya Aikyamancha (SJA), a conglomerate of 23 non-Bodo organisations,
including organisations representing linguistic and religious minorities. Sarania, who belongs to the Sarania
Kachari tribe, has promised to fight for S.T. status to Adivasis and Koch-Rajbangshis.
Permanent peace in the BTAD areas will remain elusive if Adivasis are not given S.T. status and land rights under
the S.T. and Other Traditional Forest Dwellers Act. In the absence of these rights, Adivasis have remained the soft
targets of the armed groups in the BTAD. Adivasis and Bodos do not have any enmity towards each other. It is the
armed groups that are making Adivasis their soft targets in order to create bad blood between the two
communities. If permanent peace has to prevail in the BTAD and in areas outside it that have been affected, no
compromise must be reached with the militants, Raphael Kujur, president of the All Adivasi Students
Association of Assam (AASAA), averred.

January 2015

Page 102

The terror attacks and the subsequent violence triggered the displacement of about 8,000 Adivasis from 26
villages and 1,200 Bodos from nine villages.
Militants of the NDFB (Songbijit) are suspected to frequent the Ultapani reserved forest and flee to their transit
bases inside the Bhutanese jungles taking advantage of the porosity.
As most of the remote settlements of Adivasis, Bodos and other communities inside the reserved forest areas are
treated as illegal encroachments by the State Forest Department, these communities have remained
downtrodden even after 11 years of autonomous rule by the BTC. Except in a few recognised forest villages, there
are no government schools and health care institutions. Bodo and Adivasi forest dwellers were evicted thrice from
these settlements by the Forest Department. However, some families possess ration cards.
Violent clashes between Bodos and Muslims in July and August 2012 left 103 people dead and led to the
displacement of 4.85 lakh people belonging to both communities in BTAD areas and the neighbouring districts of
Dhubri, Barpeta and Bongaigaon.
NDFB and demand for Bodoland
The Bodos are an ethno-linguistic community native to the Brahmaputra Valley in Assam. In the mid-1980s, Bodo
politicians, alleging discrimination against Bodos in Assam, intensified their campaign for the creation of Bodomajority Bodoland. While majority of the Bodos envisaged Bodoland as a state within India, a small section
demanded complete sovereignty. NDFB was formed by secessionst Bodos on 3 October 1986 as the Bodo Security
Force (BdSF), under the leadership of Ranjan Daimary, in Odla Khasibari village (near Udalguri). BdSF carried
out several violent attacks against non-Bodo civilians.
The Bodoland movement was mainly led by the political organizations - All Bodo Students Union (ABSU)
and Bodo Peoples' Action Committee (BPAC). In 1993, these two groups signed the Bodo Accord with Indian
government, agreeing to the formation of Bodoland Autonomous Council within Assam. BdSF opposed this
Accord. Shortly after the Accord, the Assam State Government refused to hand over 2,750 villages to the proposed
Council, arguing that Bodos formed less than 50% of the population in these villages. Following this, the BdSF was
renamed as National Democratic Front of Bodoland (NDFB) on 25 November 1994. The NDFB then launched
an ethnic cleansing campaign, attacking non-Bodo communities in these villages. During the 1996 Assam
Legislative Assembly elections, it killed hundreds of Santhal, Munda and Oraon adivasis (tribals), whose ancestors
had been brought to Assam as tea labourers during British Raj. In response, the tribals formed Adivasi Cobra
Force, their own militant group.
The NDFB constitution, adopted on 10 March 1998, lists its objectives as the following:
Liberate Bodoland from the Indian expansionism and occupation

Free the Bodo nation from the colonialist exploitation, oppression and domination

Establish a Democratic Socialist Society to promote Liberty, Equality and Fraternity

Uphold the integrity and sovereignty of Bodoland

The promotion of the Roman script for the Bodo language is also a significant demand of NDFB. The group's
members are mostly Christians, and are opposed to the use of Devanagari script for the Bodo language.
In the mid-1990s, NDFB also faced a rival within the Bodo community, in form of Bodo Liberation Tigers
Force (BLTF). The BLTF had evolved from an older militant group called the Bodo Volunteer Force. It considered
NDFB's secessionist agenda unrealistic and unattainable, and focused on establishment of an autonomous Bodo
territory within India. After 1996, the two groups clashed violently for supremacy. BLTF allied with Bengali Tiger
Force to protect Bengalis from NDFB attacks, and also supported Indian security forces against NDFB. The

January 2015

Page 103

conflicts between Christian-dominated NDFB and Hindu-dominated BLTF polarized the Bodoland movement
along religious lines. In 2003, BLTF surrendered en masse in return for the establishment of the Bodoland
Territorial Council.
The area under the BTC jurisdiction is called the Bodoland Territorial Area District (BTAD).The BTAD
consists of four contiguous districts Kokrajhar, Baksa, Udalguri and Chirang. The administrative unit has been
created with a mission to accomplish development in the area of economy, education, preservation of land right,
linguistic aspiration, socio-culture and ethnic identity of Bodos and above all to speed up the infrastructure
development for communities in the BTC area.
The actual functioning of council was started on 7 December 2003 by constituting the 12 members of the Council
provisionally. After the Council Election on 13 May 2005 and subsequent bye-election in November 2005, the 40member Legislative Council has been formed to look after the development works in the Bodoland Territorial Area
Districts. The remaining six members are nominated by the Governor of Assam from the unrepresented
Communities. Thus there are altogether 46 members of the Council, representing all communities of BTC Area.
40 subjects have been entrusted to the BTC Authority for all round development of the people in this area.
Subjects include the Tribal Research Institute, Lotteries and Theatres, Intoxicating Liquors, and Registration of
Births and Deaths.
NDFB had established 12 camps on the Bhutan-Assam border. During 2003-2004, the Royal Bhutan
Army destroyed these camps as part of its Operation All Clear. NDFB chief Ranjan Daimary was offered amnesty
by the Assam Chief Minister Tarun Gogoi in December 2003, but rejected the offer. On 8 October 2004, the
NDFB announced a 6-month long unilateral ceasefire that came into effect on 15 October.
However, the Government continued its operations against the group. On 15 April 2005, NDFB extended the
ceasefire. The Government released its general secretary Govinda Basumatary to open a channel of
communication with the organization's Bangladesh-based leadership. This resulted in a ceasefire agreement
between NDFB and the Government on 25 May 2005. The agreement stated that the NDFB agree to cease hostile
action against security forces and civilians. In return, the security forces would not carry out operations against
the group's members. The agreement also stipulated that NDFB members would disarm and live in camps
protected by the military for a year, and would refrain from assisting other militant groups. The pact came into
force on 1 June 2005.
However, certain factions of NDFB continued militancy. In May 2006, five members of the security forces were
abducted and killed by suspected NDFB members in Assam's Udalguri District. The group also continued to clash
with cadres of the ex-BLTF (Bodo Liberation Tiger Force). On June 5, 2006, two former BLTF cadres were killed
by NDFB militants in the Karbi Anglong District, and one former member of the disbanded group was lynched by
suspected NDFB militants in Golaghat District on June 3, 2007.
In 2008, the group split into two after Ranjan Daimary's name appeared in the 2008 Assam bombings case.
NDFB(P), the pro-talks factions led by B Sungthagra supported peace talks with the governments. NDFB(R), led
by Daimary, refused to give up militancy. In December 2008, the NDFB(P) indicated its plans to indirectly or
directly participate the Lok Sabha elections. In 2012, I K Songbijit, the chief of the NDFB(R) faction's "Bodoland
Army", announced the formation of a nine-member "interim national council", resulting in a split. NDFB(S), the
faction led by Songibijit, is now the most dreaded faction.

January 2015

Page 104

Iterview with Shubhankar Dam,

author of Presidential
Legislation in India: The Law and Practice of Ordinances.
In your book, you call the promulgation of ordinances by the Central government under Article
123(1) of the Constitution of India and by State governments under Article 213(1)
institutionalised surrogacy that reduces the legislative process to a private affair. How do you
think such an aberration has obtained constitutional sanction?
By the time the provision on ordinances came up for debate in the Constituent Assembly, it had been part of
Indias legislative architecture for nearly 90 years. The mechanism was introduced in 1861. Until 1947, about 400
ordinances were promulgated. Initially, they were few and far between; no more than 19 were promulgated in the
first 50 years. Thereafter, they increased exponentially. And that legacy cast its spell on the Constituent Assembly.
In fact, the Assembly hardly debated the provision. Jawaharlal Nehru, B.R. Ambedkar, B.N. Rau, among others,
insisted on a provision of this kind, and most members agreed. It was a necessary evil they said; and trust us,
they added, it wouldnt be misused. Even the voices against ordinances did not oppose it completely; they only
sought greater safeguards. Ironically, the same people had argued against ordinances when the British resorted to
them. Nehru, for example, once called them a charter of slavery. But suddenly his views changed. What was
immoral, undemocratic and dictatorial, overnight became necessary.
You have claimed in your book that ordinances have become the preferred method even in
situations when legislation is entirely possible.
Nehrus three terms between 1952 and 1964 are the best examples of this. He had brutal majorities in both Houses
of Parliament. Any law he wanted, he could have achieved through the normal procedure. Yet he authored as
many as 66 ordinances in those 12 years. G.V. Mavalankar, Indias first Speaker of the Lok Sabha, counselled
against this indiscriminate use. It would set a poor precedent for Parliaments in future, he wrote to Nehru, but
his advice went unheeded. Nehru died in 1964, and by then the ordinance script had been etched in stone.
Indira Gandhi as far back as 1969 and minority Cabinets since have relied on this alibi of legislation not being
possible. Often, this is a code. It may mean many things. First, it may mean that the government does not have a
majority in the two Houses of Parliament but wants a particular piece of legislation anyway. Many of the
ordinances V.P. Singh, Chandra Shekhar, [H.D.] Deve Gowda, and Inder Gujral authored are good examples of
this.
Second, it may mean that the government must negotiate with the opposition to secure a majority something it
is unwilling to do. Many of the ordinances of Morarji Desai, [P.V.] Narasimha Rao, A.B. Vajpayee and Manmohan
Singh are good examples of this.
Third, it may mean that the government first wants to have the law put in place and only then debate it in
Parliament as an afterthought. Many of the ordinances of Nehru, Indira Gandhi since 1971, and Rajiv Gandhi are
good examples of this. Rarely does the justification mean what it says.
What I find interesting about these coded versions of legislation not being possible argument is that they turn
the justification for ordinances on its head. Article 123 was meant to redress legislative urgencies that could not
await parliamentary resolution.
Now governments time ordinances; they salivate at the prospect of the Houses being prorogued or dissolvedor
do so purposefully such that legislative urgencies come about. It is almost as if Parliament is an obstacle to the
lawmaking process.

January 2015

Page 105

The recent ordinances have apparently been promulgated to send strong signals that the
government is committed to accelerating the pace of economic activityan extraneous ground,
unrelated to the commonly expressed justifications for ordinances. Would this stand legal
scrutiny?
Article 123 says that an ordinance may be promulgated if the President is satisfied that circumstances exist that
render it necessary to take immediate action. In 1970, the Supreme Court held that governments are the sole
judge of necessity; the courts will not get into this question. It is outside the scope of judicial review. In other
words, when a government says that an ordinance is necessary, legally speaking, that is the end of the matter.
Let me give you a brief overview of how the provision was meant to function. Two conditions must be met before
an ordinance may be promulgated. At least one House of Parliament should not be in session, and the President
must be satisfied that circumstances are such that an ordinance is immediately necessary. Once both Houses come
back to session, the ordinance must be presented in Parliament as a Bill. If it is ratified and receives presidential
assent, it becomes an Act, and the controversy ends there. If an ordinance is not presented before Parliament, or
Parliament votes it down, then the ordinance ceases to operate.
Supreme Courts interpretations
The Supreme Courts interpretations, however, have turned the provision into a monstrosity. Take the first two
conditions. If both Houses are in session, can the government simply prorogue one House to make an ordinance
technically possible? The Supreme Court has said yes. Consequently, the executive is also the sole judge of when
the Houses of Parliament are in session or when they should be in session. The court will not review this matter.
So what happens when Parliament resumes? Let us say that an ordinance is presented before Parliament and it is
voted down. Can the executive repromulgate the same ordinance that was voted down? In 1987, the Supreme
Court said yes. While repromulgation is generally invalid, it may be constitutional under certainmostly
unspecifiedcircumstances. That judgment effectively makes a parliamentary vote on ordinances redundant.
Irrespective of whether Parliament wants that law or not, the executive can keep the ordinance in force simply by
repromulgating it.
Finally, what happens if the government stops repromulgating a failed ordinance, and allows it to die? Under
Article 123, the ordinance ceases to operate. But what does that really mean? Imagine a situation where an
ordinance was in effect for, say, six months. During that period many official actions would have been taken under
the ordinance. What happens to all those actions? Do they also cease to operate? Do they get wiped out because
the ordinance itself is dead? The Supreme Court has said no; the actions do not get wiped out. All actions initiated
or completed during the time an ordinance is validly in force will remain permanently valid, the court explained.
Think about the implications. What this means is that even if an ordinance fails, it can produce permanent legal
effects. The recent Insurance Laws Amendment Ordinance, for example, increases the threshold for FDI in the
insurance sector from 26 per cent to 49 per cent. As the law currently stands, even if this ordinance failsthat is,
it does not become an Act of Parliamentthis change in the law will remain permanently valid. Why do we need
Parliament then?
I believe the court should reconsider these decisions. Article 123 should be read in a way that makes it difficult
legally costlyfor the executive to resort to ordinances.
Could the President have refused assent to the ordinances?
Article 123 says that ordinances are similar to Acts of Parliamentthey have the same force and standing. The
rules that apply to Bills and Acts with respect to presidential assent also apply to ordinances. The President may
return an ordinance to the government once. If the Council of Ministers sends it back a second time, assent must
be given. President Pranab Mukherjee could have returned the coal and insurance ordinances once. If the

January 2015

Page 106

[Narendra] Modi government insisted on them for a second time, Mukherjee would have been bound to give his
assent. This is the conventional view.
I disagree with it. I am of the opinion that different rules apply to parliamentary Bills and ordinances. While the
President is bound to give assent to a Bill if it is returned by the two Houses, he or she is under no such obligation
with respect to ordinances. In other words, [in my opinion] a President may return a Bill to the Houses only once;
he or she may return an ordinance to the government as many times he or she wishes.
The President is an integral part of Parliament. Indias Parliament has three organs: The President, the Upper
House and the Lower House.
When the two Houses pass a Bill, it acquires some properties. At least in theory, it would have been publicly
debated by a large number of elected officials and publicly voted upon. And so if the two Houses reiterate their
legislative preference for a second time, there are good reasons why that collective preference should prevail over
the Presidents original objections. There are good reasons why the President should stand down.
But ordinances do not have those features. Usually, they are written up in private (that is, in secret) by a small
group of men and women (that is, the Cabinet), and by definition are never voted upon publicly. If Bills reflect the
will of the two Houses of Parliament, ordinances at best reflect the will of the government. In fact, an
ordinance may be the whim of just one person, the Prime Minister. Some of Indira Gandhis ordinances never
went before the Cabinet. They went from the PMO [Prime Ministers Office] straight to the Presidents desk. When
the Presidents views on a proposed ordinance clash against the governments, there are no good reasons why the
President should give way. As the only nationally elected public official in the country, the President has enough
representative width to stand his groundto volley an ordinance back on to the governments court. Indeed, he
or she may do so endlessly.
Ordinances since the 1970s
Ordinances exponentially increased during Indira Gandhis decade: the 1970s. One hundred and thirty-five
ordinances were promulgated then; she was responsible for 107 of those. Then came the late 1980s: the age of
minority governments. Thus far, India has had 12 minority governments; 10 of them since the late 1980s.
In fact, since 1989, India only had minority governments until the Modi government broke that trend. Ordinances
now reached new heights, even surpassing Indira Gandhis egregious numbers. Narasimha Rao alone
promulgated 106; Deve Gowda and Inder Gujral of the United Front added 23 each during their short tenures as
Prime Ministers. In fact, a close analysis of two United Front governments would show that they were practically
dysfunctional. Ordinances kept them going; it helped mask their legislative incompetence. Governance mattered
little; minority governments then were judged on the length of their office rather than the strength of their
performance. Of course, India has matured since.
The greatest disincentive to parliamentary negotiations on legislative matters is the law on Article 123 and the
interpretations courts have offered. If the latter change, governments will be compelled to negotiate. Ordinances
must trigger political pain. Otherwise, habits wont change. In the Constituent Assembly a proposal was offered: if
an ordinance is promulgated, it must immediately initiate a parliamentary session so that the law may be properly
debated. The proposal wasnt accepted. In hindsight, it should have been.

January 2015

Page 107

Skill Gaps in the Indian Labour Market


Three kinds of skill gaps have been identified as important in the Indian labour market. The first is that of
overeducation, when persons with tertiary education (degrees, diplomas and/or some sort of professional
training) are hired for jobs that do not require such qualifications. A now-classic example is the post of signalman
in the Indian Railways, a job that effectively requires only education up to Class V but is hugely sought after by
graduates (often with B.Tech and MBA degrees) because it promises a regular salary with permanent
employment, and is therefore rationed out among such overqualified aspirants. This is not because these people
have not been trained or are not skilled, but because the relative remuneration over the life cycle even in such lowskilled occupations is deemed to be better than that in many higher-skilled jobs and because there are not enough
skilled jobs to meet the demands of all the aspirants. Ultimately, this is a mismatch created by an insufficiency of
job openings for more skilled jobs.
The second skills mismatch relates to the well-known situation where people who have been provided technical
education (say, in engineering) end up in occupations that do not require those skills: the phenomenon of young
people with civil engineering degrees choosing higher-paid jobs in marketing, or doctors sitting for the Indian
Administrative Services examinations to join the elite bureaucracy, and so on. Once again, this is because market
signals generate these perverse incentives by making some professions significantly more lucrative or socially
valorised. This then causes people with such professional or technical education (costly also to society when this
training has been publicly provided) to choose activities that effectively waste those expensively acquired skills.
The third kind of skills mismatch is the quality gap, when the skills that workers are supposed to possess
according to their qualifications are found to be lacking by their employers. This, too, is quite evident in many
places and activities. Surveys of employers, especially those in the corporate sector, regularly reveal that a
majority of them are not confident that existing educational institutions will generate the talents and skills they
require in entry-level workers. This is not about a lack of training per se; rather, it is a comment on the nature of
the training, which comes not just from specific and dedicated training institutes but more generally from
institutions of higher education.
The uneven quality of public educational institutions in the country is well known and much decried. The common
response to this is to demand more privatisation, in the expectation that this will deliver better quality and a more
market-responsive education, even if it will cost the students more.
What is less generally understood is the extent to which the tertiary education system has already become
privatised (with more than two thirds of tertiary enrolment now in private higher education institutions) and the
degree to which private higher education is equally if not even more plagued by problems of poor quality and
insufficient standards. Further, the overt response to market signals has created huge private sector overcapacity
in some areas of professional and technical education. This further reduces the probability of students (most of
whom have invested heavily in getting this costly training) eventually finding jobs that meet their aspirations.

January 2015

Page 108

Illicit Drug Trade in India


India has been a traditional consumer of opium and various cannabis derivatives (bhang, marijuana/ganja and
hashish). These narcotics were mostly consumed for medicinal purposes, for recreation or during religious and
social ceremonies. Earlier, almost all the demands for these drugs were met locally. Only a small quantity of
hashish was smuggled in from Nepal and Pakistan. Since the country had a long tradition of narcotics
consumption, albeit at low levels, the smuggling of hashish from across the borders, which was in any case far too
less a quantity, did not evince any alarm. However, in the early 1980s, in the wake of the inflow of heroin, which
has widespread and disastrous consequences, drug trafficking became an issue of concern. In subsequent years,
the large scale availability of synthetic and medicinal drugs and their abuse have added new dimensions to the
concerns about drug trafficking. Nearly 70 per cent of these narcotics and drugs are trafficked over land using
various modes of transportation making the countrys borders the first point of contact for drug trafficking.
The India-Pakistan Border
The proximity of the India-Pakistan border to the Golden Crescent, the largest producer of opium and cannabis
in the world, has made it vulnerable to the trafficking of heroin and hashish. The India-Pakistan border has been
witnessing increased trafficking of heroin and hashish from the Golden Crescent since 1983. Other factors also
contributed towards the increased inflow of heroin through the borders.
First, the closing of the traditional Balkan route via Iran during the Iran-Iraq war (1980-1988) led to the
rerouting of drugs through India.
Second, the pre-existing network of bullion smugglers along the border region and the involvement of criminal
networks in drug smuggling in the mid-1980s further facilitated the smuggling of drugs.

January 2015

Page 109

Third, the outbreak of the Sikh militancy in the mid-1980s and the Kashmir militancy in the late 1980s also
contributed to increased trafficking of drugs as these militants smuggled in drugs to finance their activities.
Finally, the existence of traditional smuggling routes and a porous border provided congenial conditions for drug
trafficking.
Various studies and investigative reports have reinforced that drug consumption has increased in many border
states like Punjab and Jammu & Kashmir in recent years.
Heroin and hashish produced in the Golden Crescent region are trafficked into India through the border states
of Gujarat, Rajasthan, Punjab and Jammu and Kashmir.
As a result of the heightened vigil along the Indo-Pak border the marsh lands and creeks of Gujarat are
increasingly used to smuggle heroin from Afghanistan-Pakistan region. Heroin is smuggled into the Rann of
Kutch from Karachi in various country-made boats. These marshlands with their numerous interconnected
creeks, sand bars and mangroves provide ideal hideaways for drug traffickers.

India-Nepal Border and India-Bhutan border


Hashish and marijuana/ganja are the two cannabis derivatives that have been traditionally trafficked from Nepal
into India. Lately, a growing demand for Nepalese and Bhutanese cannabis in India and a corresponding demand
for codeine based pharmaceutical preparations as well as low-grade heroin in Nepal and Bhutan have resulted in
two way smuggling of narcotics and drugs through the India-Nepal and India-Bhutan borders. Well developed

January 2015

Page 110

road networks as well as open and poorly guarded borders have facilitated large scale trafficking of drugs through
these borders.
A large quantity of the hashish that is trafficked into India transits the country for destinations such as Europe,
Canada and the United States of America.
While hashish and marijuana/ganja are smuggled from Nepal, pharmaceutical preparations containing
psychotropic substances prescribed as painkillers and anti-anxiety drugs such as diazepam, alprazolam,
nitrazepam, lorazepam, proxyvon, buprenorphine, etc. are trafficked from India to Nepal and Bhutan. Seizures of
codeine based tablets and syrups originating from India have been reported periodically from both countries. Low
grade heroin, also known as brown sugar, produced in India by diverting opium from legal cultivation as well as
procuring it through illicit cultivation is also trafficked to Nepal and Bhutan.
In India, poppy is cultivated under license in 22 districts in the states of Madhya Pradesh, Uttar Pradesh and
Rajasthan. Though cultivation is carried out under strict licensing, it is speculated that 10 to 30 per cent of the licit
produce is diverted for the manufacturing of low grade heroin in the country. Poppy is also illicitly cultivated in
different parts of the country mostly in remote and hilly terrains. Poppy is grown illicitly in the states of Jammu
and Kashmir, Himachal Pradesh, Uttarakhand, Bihar, Jharkhand, West Bengal, Manipur and Arunachal Pradesh.

The India-Myanmar Border


Proximity of the India-Myanmar border to the Golden
Triangle, growing demand for drugs among the local
population in the Northeastern states, political
instability and insecurity brought about by numerous
insurgencies in the region as well as a porous and
poorly guarded border provide a proliferating
environment for traffickers to smuggle heroin and
psychotropic substances into the country through the
India-Myanmar border. Existence of strong transborder ethnic linkages, criminal networks, and
inauguration of formal trade through Moreh
(Manipur) in 1994 have further facilitated the
unhindered and, therefore, increased illegal flow of
drugs to the Northeast. Heroin produced in the
Golden Triangle, especially Myanmar is trafficked
into India through the India-Myanmar border into the
states of Mizoram, Manipur, and Nagaland.
Myanmar in the Golden Triangle remains the main
producer of illicit opium, accounting for nearly 95 per
cent of the total opium produced in the region. While the bulk of the heroin (80 to 85 %) produced in the region is
transshipped to the international market through the Myanmar-Thailand route, a small quantity enters India
through the porous India-Myanmar border. As trafficking increased, heroin, which was introduced in the midseventies in the Northeast, became easily available in the region after 1984 and by 1990 heroin consumption
increased tremendously in the region.
Besides heroin, a significant rise in the use of psychotropic substances and medicinal preparations containing
codeine among addicts of the region has been observed since late 1990. Stringent anti-drug laws and the rising

January 2015

Page 111

prices of heroin were reasons responsible for this shift, especially towards methamphetamine, which is produced
in large quantities in Myanmar.
Precursor chemicals such as ephedrine, pseudo-ephedrine and acetic anhydride are trafficked from India into
Myanmar to cater to the demands of numerous mobile laboratories manufacturing heroin and amphetamine type
stimulants (ATS).
In addition, large consignments of pharmaceutical preparations such as corex, phensedyl,
spasmoporxyvon are trafficked overland from India to Myanmar.

uprenorphine,

India-Bangladesh Border
The India-Bangladesh border has been susceptible to smuggling of various kinds of drugs ranging from Heroin,
marijuana/ganja, hashish, brown sugar to cough syrups, etc. High demand for codeine based cough syrups in
Bangladesh, a highly porous border, dense settlement along the border, and strong trans-border ethnic ties
contribute towards drug trafficking along the India-Bangladesh border. A well developed railroad and river
network, large volume of both formal and informal trade, and existence of criminal networks are other enabling
factors for trafficking drugs along the India-Bangladesh border.
Given its large pharmaceutical industrial base, India produces a large number of prescription drugs.
Pharmaceutical preparations containing dextropropoxyphene and codeine are trafficked to the neighbouring
countries. Phensedyl, a codeine-based cough syrup in particular, has become the chief item for smuggling into
Bangladesh. Truckloads of phensedyl bottles from factories are diverted to the Northeast and West Bengal by
distributors and stockists for this purpose. In addition, empty phensedyl bottles are refilled with higher narcotic
content and repackaged as phensedyl plus and smuggled back into Bangladesh. Bulk of phensedyl bottles are
smuggled into Bangladesh through the Kailashar (Tripura) and the Cachar-Karimganj (Assam) borders.
Large-scale seizures of marijuana/ganja by the BSF and other law enforcement authorities along the border
indicate a growing trend of marijuana/ganja trafficking from India to Bangladesh. Besides Manipur and Mizoram,
marijuana/ganja is increasingly being grown by farmers in Tripura for better returns compared to traditional
crops. Heroin sourced from Myanmar has been smuggled into Bangladesh through Mizoram for long. More lately,
it is observed that heroin from the Golden Crescent is also smuggled from India into Bangladesh. The seizure of
large quantities of South West Asian origin heroin from Lucknow and Kolkata indicates that a new heroin
trafficking route through the India-Bangladesh border has been established.
In addition, brown sugar and pseudo-ephedrine manufactured in India are also trafficked to Bangladesh. Drugs
along the India-Bangladesh border are usually smuggled by individual carriers. Large number of children and
women are employed by the drug lords and unscrupulous traders to ferry phensedyl bottles, brown sugar and
heroin. These couriers carry these drugs in person when they are crossing the border to avoid detection by the
border guarding forces.
The Sea Routes
Both the east and west coasts of India have been major staging points for the smuggling of drugs. In the mid1990s, the Tamil Nadu-Sri Lanka sector emerged as an important exit route for heroin smuggled in from
Afghanistan and Pakistan. Indigenously produced brown sugar destined for neighboring countries also transits
through the Tamil Nadu coast, which is transshipped to European and American markets.
Tuticorin and Kochi have emerged as top drug trafficking centers in the country, others being Mumbai, Varanasi
and Tirupur. Drugs are smuggled out from the shores using small fishing boats. They are then transferred to small
islands dotting the south Indian coast, from where they are shipped to Sri Lanka and Maldives.

January 2015

Page 112

Consignments of heroin and ketamine are also smuggled to East and Southeast Asian countries like Malaysia,
Singapore, Thailand, Taiwan and China using the sea route. Many seizures made by law enforcement officials in
these countries trace back the consignments to Chennai, Thiruvananthpuram and Calicut, indicating that drugs
are trafficked in large container vessels from these ports.
Kolkata and Chennai ports are used to traffic Manipuri ganja, and precursor chemicals to international markets.
Along the west coast, Mumbai is a major port through which drugs illegally enter as well as exit the country.
Heroin manufactured in the Afghanistan-Pakistan region is trafficked through the port of Karachi to Mumbai,
from where it is dispatched to western countries. Heroin and brown sugar are also smuggled into the country from
Pakistan and Iran by country made boats a.k.a. dhows, which ply between the Gujarat-Maharashtra coast and
countries of the Arabian Peninsula with a stopover at Iran or Pakistan.
On the other hand, ephedrine and pseudo ephedrine preparations are smuggled to Pakistan from the Mumbai
port via Dubai. Some amount of cocaine from West Africa also enters India through the Mumbai port. Hashish
from Nepal and Pakistan is trafficked from the Mumbai port.
The Air Routes
Major as well as secondary airports in the country are used by the traffickers to smuggle various drugs through
personal carriers, postal services, etc. While Delhi and Mumbai remain the most important airports from where
maximum quantities of drugs are seized every year, other airports such as Hyderabad, Bangalore, Chennai,
Amritsar and Thiruvananthpuram have also emerged as important conduits, a fact corroborated by major drug
seizures in these places. The most important air routes for the smuggling of heroin to the international market is
the New Delhi-Lagos-Addis Ababa and the Mumbai-Lagos-Addis Ababa air links, which are exploited by Nigerian
and other African drug cartels for smuggling heroin out of India and cocaine into India. Investigations have
revealed that in many instances they induce patients coming to India for medical treatments to smuggle cocaine
into India.
Trafficking routes for East and South East Asian markets are Chennai-Kuala Lumpur; Hyderabad-Kuala Lumpur;
Chennai-China; New Delhi-Hong Kong and New Delhi-Macao. The New Delhi-Kathmandu air route is yet another
important conduit for trafficking heroin to the international market. In these routes both professional smugglers
and first timers are extensively exploited to trafficking drugs in and out of the country.

Measures adopted by India to combat drug trafficking


The Narcotic Drugs and Psychotropic Substances Act (NDPS) was enacted in 1985. Under this act, cultivation,
manufacturing, transportation, export and import of all narcotics drugs and psychotropic substances is prohibited
except for medicinal and scientific purposes and as authorized by the government. The Act provides for rigorous
punishment for any person violating this act and if a person is caught peddling drugs for the second time, death
penalty could be awarded to the offender.
The act also provides for the detention of any person for more than two years in areas categorised by it as highly
vulnerable. The NDPS Act also provides for forfeiture of property acquired through illicit trafficking of drugs.
Under the NDPS Act, a number of persons have been prosecuted and sentenced to rigorous imprisonment and
their properties confiscated. In fact, in a number of cases special courts have served death penalties to persons
found guilty of trafficking drugs for the second time. For example, in 2003, a Nigerian was served death penalty
after he was convicted of drug trafficking. Similarly in December 2007, a special court had awarded death penalty
to Ghulam Malik after he was convicted the second time for drug trafficking. Incidentally, in both the cases high
courts overturned their death sentences to imprisonments.

January 2015

Page 113

The government of India has also enacted the Prevention of Illicit Traffic in Narcotic Drugs and Psychotropic
Substances Act in 1988, which allows detention of persons suspected to be involved in illicit trafficking of drugs.
Besides, a few sections of the Customs Act of 1962 have been implemented for curbing the illicit export of
precursor chemicals.
Since de-addiction and rehabilitation of drug dependants require innovative and sustained involvement, the
government is assisted by a number of voluntary organisations. These voluntary organisatons complement the
governments efforts in the prevention and control of drug abuse by spreading awareness about the destructive
effects of drugs in the communities, as well as by assisting in de-addiction treatments and reintegration of drug
dependants into the societal mainstream. Since these NGOs have the required expertise and ground knowledge
about drug abuse, they advise and work closely with governments.
Considering that India has been a transit hub as well
as a destination for drug trafficking, emphasis has
been laid upon ensuring the security of the borders by
preventing the easy movement of the drug traffickers
along with their consignments through the borders. In
this respect, the most visible measure that was
undertaken was the building of border fences. Border
fences were erected first along the borders with
Pakistan, beginning in the mid-1980s, when large
numbers of terrorists as well as huge quantities of
drug from Pakistan began to enter India. In later
years, fences were built along the India-Bangladesh
border primarily to prevent illegal migration, but
these fences also acted as a barrier to the free movement of drug traffickers. That the construction of fences has
reduced the inflow of drugs from across the borders substantially is corroborated by the reduced seizure figures as
well as the increased use of sea routes by the traffickers to smuggle in drugs into the country.
Strengthening surveillance along the borders by deploying adequate numbers of border guarding personnel is
another measure undertaken to ensure security of the borders. Regular patrolling and electronic surveillance is
carried out for detecting suspicious movements along the borders as well as to gather intelligence to effectively
deal with drug trafficking. In addition to border guards, personnel from several central organisations such as the
Customs, the Directorate of Revenue Intelligence, the Narcotics Control Bureau, and the Central Bureau of
Narcotics as well as state organizations such as state police, state excise and state forest departments are also
employed for the detection and apprehension of drug consignments along the borders.
Since the bulk of drugs are smuggled in through formal trading routes, India has embarked upon a plan to
upgrade 13 of the land custom stations into integrated check posts with state of the art equipment to detect drug
consignments being smuggled into and out of the country along with regular goods. For securing Indias coasts,
several coastal police stations have been established and provided with interceptor boats and other vehicles to
intensify vigilance along the coasts and seas. In addition, joint patrolling along the Maharashtra and Gujarat
coasts, which are particularly prone to drug smuggling, is being carried out by a team comprising the state police,
coast guard and customs since 1993. The capacity to detect drug consignments at the airports and sea ports has
been strengthened by installing sophisticated screening and detection machines.
Realising the importance of a cooperative framework for the prevention of illicit trafficking of drugs and
chemicals, India has entered into bilateral and multilateral agreements with several countries including
neighbours. Bilateral agreements were signed with Afghanistan (1990), Bangladesh (2006), Bhutan (2009),
Myanmar (1993), and Pakistan (2011). These agreements have been instrumental in establishing a mechanism for

January 2015

Page 114

mutual exchange of information, of operational and technical experience, cooperation for joint investigations and
other assistance to identify, suppress and prevent criminal activities of the international syndicates engaged in the
illicit traffick of narcotics drugs, psychotropic substances and precursor chemicals.
As for multilateral agreements with neighbours, India is a signatory to the SAARC Convention on Narcotics Drugs
and Psychotropic substances, 1993. The convention provides for regular meetings of Home Ministers and Home
Secretaries of the member countries as well as for interactions among the members of SAARC Conference on
Cooperation in Police matters. India has also signed the BIMSTEC Convention on Cooperation in Combating
International Terrorism, Transnational Organised Crime and Illicit Drug Trafficking in 2009, which provides for a
legal framework to all the member countries to combat drug trafficking and organised crime. India is also a party
to the Pentalateral Cooperation on Drug Control, which focuses on the prevention of illicit trade of precursor and
other chemicals used for the manufacture of heroin.
The Narcotics
Control
Bureau
(NCB) is
the
chief law
enforcement and intelligence agency
of India responsible for fighting drug trafficking and the abuse of illegal substances. It was created on 17 March
1986 to enable the full implementation of the Narcotic Drugs and Psychotropic Substances Act, 1985 and fight its
violation through the Prevention of Illicit Trafficking in Narcotic Drugs and Psychotropic Substances Act, 1988.
The chief purpose of the Narcotics Control Bureau is to fight drug trafficking on an all-India level. It works in close
cooperation with the Directorate General of Income Tax Investigation, Customs and Central Excise, Indian Police
Department (IPS), Central Bureau of Investigation (CBI), Central Economic Intelligence Bureau (CEIB) and other
Indian intelligence and law enforcement agencies both at the national and states level. The NCB also provides
resources and training to the personnel of India's law enforcement agencies in fighting drug trafficking. The NCB
also monitors India's frontiers to track down points where smuggling activities take place with foreign traffickers.

Impacts of drug trafficking


Drug abuse is a complex phenomenon, which has various social, cultural, biological, geographical, historical and
economic aspects. The disintegration of the old joint family system, absence of parental love and care in modern
families where both parents are working, decline of old religious and moral values etc. lead to a rise in the number
of drug addicts who take drugs to escape hard realities of life. Drug use, misuse or abuse is also influenced by the
nature of the drug abused, the personality of the individual and the addict's immediate environment.
The processes of industrialization, urbanization and migration have led to loosening of the traditional methods of
social control rendering an individual vulnerable to the stresses and strains of modern life. The fast changing
social milieu, among other factors, is mainly contributing to the proliferation of drug abuse, both of traditional
and of new psychoactive substances. The introduction of synthetic drugs and intravenous drug use leading to
HIV/AIDS has added a new dimension to the problem, especially in the
Northeastern states of the country.
Drug abuse has led to a detrimental impact on the society. It has led to increase in
the crime rate. Addicts resort to crime to pay for their drugs. Drugs remove
inhibition and impair judgment egging one on to commit offences. Incidents of eveteasing, group clashes, assault and impulsive murders increase with drug abuse.
Apart from affecting the financial stability, addiction increases conflicts and causes
untold emotional pain for every member of the family. With most drug users being in
the productive age group of 18-35 years, the loss in terms of human potential is
incalculable. The damage to the physical, psychological, moral and intellectual
growth of the youth is very high. Adolescent drug abuse is one of the major areas of concern in adolescent and
young people's behavior. It is estimated that, in India, by the time most boys reach the ninth grade, about 50
percent of them have tried at least one of the gateway drugs.

January 2015

Page 115

However, there is a wide regional variation across states in term of the incidence of the substance abuse. For
example, a larger proportion of teens in West Bengal and Andhra Pradesh use gateway drugs (about 60 percent in
both the states) than Uttar Pradesh or Haryana (around 35 percent). Increase in incidences of HIV, hepatitis B
and C and tuberculosis due to addiction adds the reservoir of infection in the community burdening the health
care system further. Women in India face greater problems from drug abuse. The consequences include domestic
violence and infection with HIV, as well as the financial burden. Eighty seven per cent of addicts being treated in a
de-addiction center run by the Delhi police acknowledged being violent with family members. Most of the
domestic violence is directed against women and occurs in the context of demands for money to buy drugs. At the
national level, drug abuse is intrinsically linked with racketeering, conspiracy, corruption, illegal money transfers,
terrorism and violence threatening the very stability of governments.
Debilitating effects of drug abuse on the society:

Health and psychological problems experienced by drug users include Schizophrenia, depression, paranoia,
cirrhosis, nutritional or metabolic disorders, viral infections such as HIV/AIDS or hepatitis etc.
Treatment costs in public and private institutions, including hospital/rehab.
Deaths or serious injuries by homicide, accident, or suicide associated with psychoactive substance use.
Increased stress and psychological burdens on society, especially in response to escalating serious crime rates
associated with the trade including property loss, murders and kidnappings.
Premature mortality, illness, injury leading to incapacitation, and imprisonment all serve to directly reduce
national productivity.
Public financial resources expended in the areas of health care and criminal justice as a result of illegal drug
trafficking and use are resources that would otherwise be available for other policy initiatives.
The environmental impact of illicit drugs is largely the result of outdoor cannabis cultivation and
methamphetamine production. The process used to produce methamphetamine results in toxic chemicals that
are typically discarded improperly in fields, streams, forests, and sewer systems, causing extensive
environmental damage.

The spread and entrenchment of drug abuse needs to be prevented, as the cost to the people, environment and
economy will be colossal. The unseemly spectacle of unkempt drug abusers dotting lanes and by lanes, cinema
halls and other public places should be enough to goad the authorities to act fast to remove the scourge of this
social evil. Moreover, the spread of such reprehensible habits among the relatively young segment of society ought
to be arrested at all cost. There is a need for the government enforcement agencies, the non-governmental
philanthropic agencies, and others to collaborate and supplement each other's efforts for a solution to the problem
of drug addiction through education and legal actions.

January 2015

Page 116

Rajiv Gandhi and Sri Lankan President J. R. Jayewardene signing the Peace Accord

Sri Lankan civil war and Indian intervention


In 1948 immediately after Independence a controversial law was passed by the Ceylon Parliament, called
the Ceylon Citizenship Act which deliberately discriminated against the Indian Tamil ethnic minority by making it
virtually impossible for them to obtain citizenship in the country. Approximately over 700,000 Indian
Tamils were made stateless. Over the next three decades more than 300,000 Indian Tamils were deported back to
India. It wasn't until 2003, 55 years after independence, that all Indian Tamils living in Sri Lanka were granted
citizenship but by this time they only made up 5% of the island's population.
In 1956 Prime Minister Bandaranaike passed the "Sinhala Only Act", an Act
which replaced English with Sinhala as the only official language of the
country. This was seen as a deliberate attempt to discourage the Sri Lankan
Tamils from working in the Ceylon Civil Service and other public services.
The Tamil speaking minorities of the Ceylon viewed the Act as linguistic,
cultural and economic discrimination against them. Many Tamil
speaking civil servants/public servants were forced to resign because they
weren't fluent in Sinhala. This was a prelude to the 1956 Gal Oya riots and the
1958 widespread riots in which thousands of Tamil civilians perished. The
civil war was a direct result of the escalation of the confrontational politics
that followed.
In late 1960s, documents relating to a separate Tamil state of 'Tamil Eelam'
began to circulate. At this time, Anton Balasingham, an employee of the
British High Commission in Colombo, began to participate in separatist
activities. He later migrated to Britain, where he would become the chief theoretician of the LTTE. In the late
1960s, several Tamil youth, among them Velupillai Prabhakaran also became involved in these activities. They
carried out several hit-and-run operations against pro-government Tamil politicians, Sri Lanka Police and civil
administration.

January 2015

Page 117

During the 1970s, an act of Institutional racism known as the infamous Policy of standardization was initiated.
Under this policy, University admissions were standardized to correct disproportionately higher number of Sri
Lankan Tamil students entering universities. Officially the policy was meant to discriminate in favour of students
from rural areas but in reality the policy discriminated against Sri Lankan Tamil students who were in effect
required to get more marks than Sinhalese students to gain admission to universities. The number of Sri Lankan
Tamil students entering universities fell dramatically. The policy was abandoned in 1977.
Other forms of official discrimination against the Sri Lankan Tamils included the state-sponsored colonisation of
traditional Tamil areas by Sinhalese peasants, the banning of the import of Tamil-language media and the
precedence given by the 1978 Constitution of Sri Lanka to Buddhism, the main religion followed by the Sinhalese.
Prabhakaran, together with Chetti Thanabalasingam, a well known criminal from Kalviyankadu, Jaffna formed
the Tamil New Tigers (TNT) in 1972.
The formation of the Tamil United Liberation Front (TULF) with the Vaddukkodei (Vattukottai) resolution of
1976 led to a hardening of attitudes. The resolution called for the creation of a secular, socialist state of Tamil
Eelam, based on the right of self-determination.
Alienated by the on-going politics of conflict in Sri Lanka, politicised Tamil youth in the north and the east started
to form militant groups. These groups developed independently of the Colombo Tamil leadership, and in the end
rejected and annihilated them. The most prominent of these groups was the TNT, which changed its name to the
Liberation Tigers of Tamil Eelam or the LTTE in 1976. The LTTE initially carried out a campaign of violence
against the state, particularly targeting policemen and also moderate Tamil politicians who attempted a dialogue
with the government. Their first major operation was the assassination of the mayor of Jaffna, Alfred
Duraiappah in 1975 by Prabhakaran.
In May 1981, the Burning of Jaffna library by politicians from the ruling party using police and paramilitary forces
resulted in the destruction of more than 90,000 books, including "palm leaf scrolls" of immense historical value.

The LTTE's modus operandi of the early war was based on assassinations. In July 1983, the LTTE launched a
deadly ambush on a Sri Lanka Army check point Four Four Bravo outside the town of Thirunelveli, killing an
officer and 12 soldiers. Using the nationalistic sentiments to their advantage, the Jayawardene government
organised massacres and pogroms in Colombo, the capital, and elsewhere. Between 400 and 3,000 Tamils were
estimated to have been killed, and many more fled Sinhalese-majority areas. This is considered the beginning of
the civil war.

January 2015

Page 118

Apart from the LTTE, there initially was a plethora of militant groups. Initially, the LTTE gained prominence due
to devastating attacks such as the Kent and Dollar Farm massacres of 1984, where hundreds of men, women and
children were attacked during the night as they slept and were hacked to death with fatal blows to the head from
axes; and the Anuradhapura massacre of 1985, where they indiscriminately opened fire, killing and wounding 146
civilians within Jaya Sri Maha Bodhi Buddhist shrine. The Anuradhapura massacre was apparently answered by
government forces with the Kumudini boat massacre in which over 23 Tamil civilians died. Over time, the LTTE
merged with or largely exterminated almost all the other militant Tamil groups. As a result, many Tamil splinter
groups ended up working with the Sri Lankan government as paramilitaries or denounced violence and joined
mainstream politics, and some legitimate Tamil-oriented political parties remained, all opposed to LTTE's vision
of an independent state.
Peace talks between the LTTE and the government began in Thimphu in 1985, but they soon failed, and the war
continued. In 1986, many civilians were massacred as part of this conflict. In 1987, government troops pushed the
LTTE fighters to the northern city of Jaffna. In April 1987, the conflict exploded with ferocity, as both the
government forces and the LTTE fighters engaged in a series of bloody operations.
In July 1987, the LTTE carried out their first suicide attack. Captain Miller of the Black Tigers drove a small truck
carrying explosives through the wall of a fortified Sri Lankan army camp, reportedly killing 40 soldiers. They
carried out over 378 suicide attacks, more than any other organisation in the world, and the suicide attack became
a trademark of the LTTE and a characteristic of the civil war.
Initially, under Indira Gandhi and later under Rajiv Gandhi, the Indian Government sympathised with the Tamil
insurrection in Sri Lanka because of the strong support for the Tamil cause within the Indian state of Tamil Nadu.
Emboldened by this support, sympathizers in Tamil Nadu provided a sanctuary for the separatists and helped the
LTTE smuggle arms and ammunition into Sri Lanka, making them the strongest force on the island. In fact in
1982, the LTTE supremo Prabhakran was arrested by the police in Tamil Nadu, for a shoot-out with his rival Uma
Maheswaran, in the middle of the city. Both of them were arrested and later released by the police. This activity
was left unchecked as India's regional and domestic interests wanted to limit foreign intervention on what was
deemed as a racial issue between the Tamils and the Sinhalese. To this end, the Indira Gandhi government sought
to make it clear to Sri Lankan president Jayewardene that armed intervention in support of the Tamil movement
was an option India would consider if diplomatic solutions should fail.

LTTE leader Prabhakaran with soldiers

January 2015

Page 119

The first round of civil violence flared in 1983 when the killing of 13 soldiers of the Sri Lanka Army sparked antiTamil pogromsthe Black July riotsin which approximately 400 Tamils were killed. The riots only aided in the
deterioration of the ethnic relations. Militant factions, including the LTTE, at this time recruited in large numbers
and continued building on popular Tamil dissent and stepped up the guerrilla war. By May 1985, the guerrillas
were strong enough to launch an attack on Anuradhapura, attacking the Bodhi Tree shrinea sacred site for
Buddhist Sinhalesefollowed by a rampage through the town. At least 150 civilians died in the hour-long attack.
Rajiv Gandhi's government attempted to re-establish friendly relations with the various factions in Sri Lanka
while maintaining diplomatic efforts to find a solution to the conflict as well as limiting overt aid to the Tamil
fighters.
The Sri Lankan government, deducing a decline in support for the Tamil rebels from India, tried to rearm itself
extensively for its anti-insurgent role with support from Pakistan, Israel, Singapore, and South Africa. In 1986, the
campaign against the insurgency was stepped up. In 1987, retaliating against an increasingly bloody insurgent
movement, the Vadamarachchi Operation (Operation Liberation) was launched against LTTE strongholds in
Jaffna Peninsula. The operation involved nearly 4,000 troops, supported by helicopter gunships as well
as ground-attack aircraft. In June 1987, the Sri Lankan Army laid siege on the town of Jaffna. This resulted in
large-scale civilian casualties and created a condition of humanitarian crisis. India, which had a substantial Tamil
population in South India faced the prospect of a Tamil backlash at home, called on the Sri Lankan government to
halt the offensive in an attempt to negotiate a political settlement. However, the Indian efforts were unheeded.
Added to this was the growing involvement of Pakistani advisers. Failing to negotiate an end to the crisis with Sri
Lanka, India announced on 2 June 1987 that it wound send a convoy of unarmed ships to northern Sri Lanka to
provide humanitarian assistance but this was intercepted by the Sri Lankan Navy and forced to turned back.
Following the failure of the naval mission the decision was made by the Indian government to mount an airdrop of
relief supplies in aid of the beleaguered civilians over the besieged city of Jaffna. On 4th June 1987, in a bid to
provide relief, the Indian Air Force mounted Operation Poomalai. Five Antonov An-32s under fighter cover flew
over Jaffna to airdrop 25 tons of supplies, all the time keeping well within the range of Sri Lankan radar coverage.
At the same time the Sri Lankan Ambassador to New Delhi, Bernard Tilakaratna, was summoned to the Foreign
Office to be informed by the Minister of State, External Affairs, K. Natwar Singh, of the ongoing operation and
also indicated that the operation was expected not to be hindered by the Sri Lankan Air Force. The ultimate aim of
the operation was both to demonstrate the seriousness of the domestic Tamil concern for the civilian Tamil
population and reaffirming the Indian option of active intervention to the Sri Lankan government.
Following Operation Poomalai, faced with the possibility of an active Indian intervention and lacking any possible
ally, the President, J. R. Jayewardene, offered to hold talks with the Rajiv Gandhi government on future
moves. The siege of Jaffna was soon lifted, followed by a round of negotiations that led to the signing of the IndoSri Lankan Accord on 29th July 1987 that brought a temporary truce. Crucially however, the negotiations did not
include the LTTE as a party to the talks.

January 2015

Page 120

Peace Accord: The Sri Lankan


Government made a number of
concessions
on Tamil demands,
which included devolution of power
to the provinces, merger (subject to
later referendum) of the northern and
eastern provinces, and official status
for
the
Tamil
language. More
immediately, Operation Liberation
the successful, ongoing anti-insurgent
operation by Sri Lankan forces in the
Northern peninsula was ended. Sri
Lankan troops were to withdraw to
their barracks in the north and the
Tamil rebels were to disarm. India
agreed to end support for the Tamil
separatist movement and recognize the unity of Sri Lanka. The Indo-Sri Lanka Accord also underlined the
commitment of Indian military assistance and the Indian Peace Keeping Force was sent to Sri Lanka.
The main task of the IPKF was to disarm the different militant groups, not just the LTTE. It was to be quickly
followed by the formation of an Interim Administrative Council.
The force was initially not expected to be involved in any significant combat. However, within a few months, the
IPKF became embroiled in battle with the LTTE to enforce peace. The differences started with LTTE trying to
dominate the Interim Administrative Council, and also refusing to disarm, which was a pre-condition to enforce
peace in the island. Soon, these differences led to the LTTE attacking the IPKF, at which point the IPKF decided to
disarm the LTTE militants, by force if required. In the two years it was in northern Sri Lanka, the IPKF launched a
number of combat operations aimed at destroying the LTTE-led insurgency. Given LTTE's tactics in guerrilla
warfare and using women and child soldiers to fight battles, it soon escalated into repeated skirmishes between
the IPKF and LTTE.
The IPKF began withdrawing from Sri Lanka in 1989, following the election of the Vishwanath Pratap Singh
government in India and on the request of the newly elected Sri Lankan President Ranasinghe Premadasa.
In 1990, India withdrew the last of its forces from Sri Lanka, and fighting between the LTTE and the government
resumed. The Liberation Tigers of Tamil Eelam and government forces committed serious human rights
violations against one another.
In January 1995, the Sri Lankan Government and the Liberation Tigers of Tamil Eelam agreed to a cease fire as a
preliminary step in a government-initiated plan for peace negotiations. After 3 months, however, the Liberation
Tigers of Tamil Eelam unilaterally resumed hostilities.
The government of Sri Lanka then adopted a policy of military engagement with the Tigers, with government
forces liberating Jaffna from LTTE control by mid-1996 and moving against LTTE positions in the northern part
of the country. An LTTE counter offensive, begun in October 1999, reversed most government gains; and by May
2000, threatened government forces in Jaffna. Heavy fighting continued into 2001.

January 2015

Page 121

On the eve of the signing of the Indo-Sri Lanka Accord, Rajiv Gandhi was assaulted by a soldier at the Guard of
Honour held for Gandhi in what seemed an attempted assassination. Four years later, in 1991, Rajiv Gandhi
was assassinated by a LTTE suicide bomber. This radically reduced support for the LTTE within India. In 2009, 19
years after his assassination, the Sri Lankan army mounted a major military offensive in the north and eradicated
the LTTE. The operation was not opposed by India and received Indian diplomatic and military support, despite
condemnations from state of Tamil Nadu and Western nations for alleged human rights violations.
Latest development - DMK and several other parties in Tamil Nadu have welcomed the announcement made
by newly-elected Sri Lankan Government that it would implement India-backed 13th Amendment to the
Constitution. The Thirteenth Amendment (13A) to the Constitution of Sri Lanka created Provincial Councils. This
also made Sinhala and Tamil as the official language of the country and English as link language.

January 2015

Page 122

Bezbaruah Committee
The Ministry of Home Affairs had constituted a Committee in February 2014 under the chairmanship of Shri M.P.
Bezbaruah to look into the various concerns of the citizens hailing from the North Eastern States who are living in
different parts of the country and to suggest suitable remedial measures including legal measures which could be
taken up by the Government. Recommendations of the committee are as follows:

A proposal to add section 153-C to IPC which makes acts causing or likely to cause fear or feeling of insecurity
among the community punishable with up to five years imprisonment. Another proposed section 509-A
provides up to three years imprisonment for words, gesture or act intended to insult a member of any race.
A panel of seven lawyers including five women lawyers has been constituted by the Delhi State Legal Service
Authority (DSLSA) for providing legal assistance to the needy people from the North East.
The Delhi Government will also be providing compensation and monetary assistance to the NE people under
Delhi Victim Compensation Scheme 2011.
Delhi police will recruit 20 police personnel, (10 male 10 female) each from North East States.
Police exchange programme has been approved between NE States and metropolitan cities including Delhi.
North East Special Unit at New Delhi is activated to address the grievances of the NE people. Other States
have been advised to do the same.
A decision has been taken that cases of NE people be referred to the existing fast track courts for early
decision.
A special helpline No.1093 for NE people is being synchronized with helpline No.100. Other States are advised
to set up special helpline.
Various Metropolitan Police including Delhi Police are being advised to post NE Personnel in their force in the
visible positions in vulnerable areas prone to crime against NE people.
In order to educate the people about the North East, Universities have been advised that history of North East
and participation in the freedom movement of the country should be taught at graduation level and post
graduation level, and for this purpose, curriculum be changed.
Similar action is being taken by the NCERT with respect to elementary and higher secondary education.
A special scholarship scheme for students of North East Region Ishan Uday has been launched from the
academic session 2014-15 providing 10,000 scholarships ranging from Rs.3,500/- to Rs.5,000/- per month
for studying at under-graduate level in colleges and universities of the country.

Ministries of Culture, Tourism, Information & Broadcasting have also planned to roll out prorgammes for
bridging the gap between the peoples of the North-Eastern Region and the rest of the country, including:

Chalking out action plan for educating the people about the rich cultural heritage of the North Eastern States
and its wider coverage & promotion at the national level.
The North East Film Festival & North East Festival to be organized annually at New Delhi, showcasing
culture, films, foods, sports etc.

January 2015

Page 123

Besides, the Ministry of Sports has also been roped in this endeavour:

Has committed itself for identification of talented sports persons from North East with the help of State
Governments for arranging their training in reputed sports training centres.
Sports Ministry is taking action for organizing Sports Tournaments/Events in the North Eastern States.
An amount of Rs.100 crore has been earmarked for setting up of National Sports University in Manipur.

Ministry of DoNER(Development of North Eastern Region) being the nodal agency for development of the remote
region has also initiated many steps like construction of a hostel at the Jawaharlal Nehru University and four
other colleges in Delhi.

Rating of ITIs
Ministry of Labour and Employment has introduced a scheme for rating of ITIs (Industrial Training Institutes) in
order to promote excellence in vocational training. Presently there are about 12000 ITIs in the country. The
numbers of ITIs have doubled over the last five-six years and many more ITIs are proposed to be opened within
the next five years. With such a vast rate of growth, it was felt necessary to introduce quality assurance system for
these institutions.
The rating scheme can provide a benchmark for comparison amongst various institutes and trades offered
therein. It is also expected to bring a differentiating factor for institutions leading to increased market
competition and thereby quality improvement in laggard institutions so that they would remain competitive. The
rating will also help students and employers by serving as a formal recognition from the Government about a
specified level of quality of training and facilities. In the normative fee structure for private ITIs, 20% extra fee
has been permitted for ITIs who are rated 5 star or 4 star.

Year End Review for the Department of School


Education and Literacy, Ministry of Human Resource
Development
Kasturba Gandhi Balika Vidyalayas
i. The Kasturba Gandhi Balika Vidyalayas (KGBVs) are sanctioned in Educationally Backward Blocks (EBBs) with
rural female literacy below the national average as per Census 2001, provided such residential schools are set up
only in those EBBs which do not have a residential school at upper primary level for girls under any other scheme
of the Ministry of Social Justice & Empowerment or the Ministry of Tribal Affairs.
ii. As on 30th September, 2014, a total no. of 3609 KGBVs were sanctioned out of which 3593 (99.56%) are
operational. 3.52 lakh girls have been enrolled in these KGBVs out of which 21525 (6.10%) girls are enrolled from
Muslim Community.
iii. Socio-economic reasons and reluctance of the community to send girls to residential schools are the main
reasons for low enrolment amongst educationally backward minorities. In order to promote elementary
education amongst girls, opening of schools in the neighbourhood to make access easier for girls, appointment of
additional teachers including women teachers, free textbooks, free uniforms, separate toilets for girls, mid-day
meal programme to improve nutrition levels, gender sensitization of teachers, gender-sensitive teaching-learning
materials and intensive community mobilization efforts to promote girls education, are being undertaken by the
Government.

January 2015

Page 124

Mid Day Meal Scheme (MDMS)


i. Mid Day Meal Scheme covers children studying in classes I-VIII in Government, Government aided and Special
Training Centres (STCs) including Madarsas/ Maktabs supported under Sarva Shiksha Abhiyan.
ii. The Government has provided Rs. 13215 crores for the Mid Day Meal Scheme (MDMS) in the current year.
During the year 2013-14, 10.80 crore children studying in 11.58 lakh institutions have availed Mid Day Meal.
Rashtriya Madhyamik Shiksha Abhiyan
i. The RMSA guidelines provide for augmenting secondary school infrastructure through construction of
additional class rooms, laboratories, toilet blocks, drinking water, libraries etc. Till date 10513 new schools have
been approved under the scheme.
ii. The centrally Sponsored Scheme of Rashtriya Madhyamik Shiksha Abhiyan (RMSA) has prescribed norms that
are same for all the States/Union Territories (UTs) in the country. The funds are provided to States/UTs under
RMSA based on the Annual Work Plan & Budget proposals submitted by States/UTs and appraised for their
eligibility as per Schemes norms by Government of India. State/UT proposals vary depending on state specific
requirements.
Model Schools
i. The Centrally sponsored scheme to set up 6,000 model schools at the rate of one school per block as benchmark
of excellence is being implemented from 2009-10. The scheme envisages setting up of 3,500 schools in
educationally backward blocks (EBBs) through State/UT Governments and the remaining 2,500 schools under
the Public-Private Partnership (PPP) mode in blocks which are not educationally backward.
ii. Under the State sector component of the scheme which is being implemented from 2009-10, 2490 model
schools have so far been approved in 23 States/UTs. Financial sanctions amounting to Rs. 3725.00 crore have
been accorded for setting up 2329 model schools in 23 States. 1087 model schools have so far been functional in
12 States. Insofar as PPP component of Model School Scheme is concerned, the Ministry has decided to
undertake review of this component and the future course of action is thus dependent upon the outcome of the
review.
National Means-cum-Merit Scholarship Scheme (NMMSS)
96798 scholarships (Rs.6000/- per annum) have been sanctioned to students of Classes IX to XII belonging to
economically weaker sections during nine months of current financial year to arrest their drop out at class VIII
and
encourage
them
to
continue
the study
at
secondary stage
under
the
Scheme.
Adult Education
Adult Education Bureau of Department of School Education & Literacy deals with two major schemes namely;
Centrally Sponsored Schemes of Adult Education & Skill Development (Saakshar Bharat) under implementation
since 2009 and Centrally Sponsored scheme of Support to NGOs/SRCs/Institutions for Adult Education & Skill
Development. The major achievements of these two schemes are as under:
i.
ii.

Under Saakshar Bharat Mission by December, 2014, 395 districts in 26 States and one in UT are covered.
About 3.92 crore learners appeared for biannual basic literacy assessment tests conducted by National
Institute of Open Schooling (NIOS) so far. About 2.86 crore learners (including 2.05 crore females),
comprising of 0.67 crore SCs, 0.36 crore STs & 0.23 crore Minorities have successfully passed the Assessment
Tests under Basic Literacy up to March, 2014. In addition, about 41 lakh learners have taken up the

January 2015

Page 125

iii.
iv.
v.

vi.

assessment test held in August, 2014, data in respect of 36, 67,247 learners received out of which 27, 15,054
learners have been declared passed. Result of remaining learners is under compilation.
1.53 lakh Adult Education Centres are reported functioning by November, 2014.
2.58 million persons have been trained as Voluntary Teachers; 42.6 million Primers in 13 languages and 26
local dialects have been produced and distributed.
Around 29 lakh learners have been benefited under Vocational Training programme through Jan Shikshan
Sansthan between 2009 to 2014 out of which the women beneficiaries were 25.02 lakhs which constitutes
around 85% of the total beneficiaries.
As on 29th December, 2014 accounts of 63.16 lakhs certified adult literates have reportedly opened accounts
under the Pradhan Mantri Jan Dhan Yojna Scheme, with the active effort of Saakshar Bharat.

Speech of Sushma Swaraj at Youth Pravasi Bharatiya


Divas
The External Affairs Minister and Overseas Affairs Minister said that she feels great joy in addressing this
gathering of youth from across the world, who share a special bond with India, a bond of the heart. Speaking to
the young generation of Pravasis, she said that this Youth PBD is about 3Cs.
The first C is Connect
Today, an estimated 25 million people of Indian origin and non-resident Indians live and work outside India. The
Pravasi Bhartiya Diwas is essentially a platform to connect this Indian diaspora with the motherland and involve
the diaspora in the development and advancement of India. With this PBD we mark 100 years of the return of the
greatest Pravasi Bharatiya, Shri Mohandas Karamchand Gandhi, who arrived back in India from South Africa on
January 9, 1915, she said. Today, India is seen as a rising power, and appreciated across the world for the way it
has converged strong democratic institutions with rapid development. The biggest asset of this new India is its
youth.
Even though India is an old civilization, today it is also one of the youngest countries in the world, with more than
50 per cent of our population being under the age of 25, which means that soon one fifth of the worlds working
age population will be in India. The Youth PBD seeks to connect the new generation of Indians who are confident,
aspirational and transcend the old boundaries of caste and class, the minister said.
The second C is Celebrate
We want the young Pravasis to take pride in the history and civilizational heritage of India which is their cultural
inheritance. M K Gandhi came back to India a hundred years ago and brought about momentous changes to this
land, which made him a Mahatma. Gandhi thought that it was necessary for him to get to know India better before
he launched himself into the national freedom movement. He went around the country on trains, always traveling
in third class, to be among the people, and observed many things about the country. This voyage of discovery
opened his eyes to the true face of India and its problems, which he then set out to solve. To know more about
India, its traditions, and its art and culture, a session on Bharat ko Jano will tell you that zero and the decimal
system were Indias gift to the world. The value of Pi was first calculated by Budhayana in the sixth century. The
worlds first university was established in Takshila in 700 BC. The earliest school of medicine known to humans
was Ayurveda which was consolidated by Charaka, the father of medicine, some 2,500 years ago.
Ideas such as non-violence, tolerance and respect for diversity and difference are enshrined in our way of life and
have shown the world the way to live with peace and harmony. In second plenary session called Bharat ko Mano
tells youth about the remarkable strides that modern India has taken, especially in the fields of science and
technology. The nation which gave the world the concept of zero, has also mastered the nuclear cycle, sent

January 2015

Page 126

expeditions to Antarctica and even unmanned missions to the moon and Mars. In fact ISROs Mars Orbiter
Mission Mangalyaan was recently named among the best inventions of 2014 by TIME magazine. The spacecraft,
which took just four years from feasibility study to arrival in Mars orbit, cost approximately 25 million dollars, less
than the budget for the Hollywood film Gravity. India also became the first nation to reach Mars orbit in its very
first attempt.
Indias soft power has also been spreading around the world. The intensity of Indias international engagement
has also increased manifold which can be seen from the calendar of high level visits both to and from India. Prime
Minister Modis out-of-the-box initiatives and whirlwind tours have raised Indias global profile. In a few days
from now President Obama will grace our Republic Day parade as the Chief Guest, she said. The Indian economy
which is now the third largest in terms of purchasing power parity, is showing new dynamism under the NDA
government , with a complete transformation in the business sentiment vis--vis India.
To enhance ease of doing business, the Government has taken multiple steps to simplify procedures, rationalize
rules and increase use of technology for efficient and effective governance. Efforts are on to identify obsolete laws
and regulations which need to be repealed. Skilling our people, particularly the young, is also a priority.
There is also a clear focus on infrastructure. Several steps have been taken to enhance financing of infrastructure,
and we have moved towards a more transparent policy on natural resources. Given the enormous requirements
for infrastructure development over the next few years, foreign investment is going to be extremely important.
And the third C Contribute
We want you, the Pravasis, to contribute to the development of India. We want you to participate in the vision that
Prime Minister Modi has for Indias future. We have launched several programmes that have the potential to
transform India. The Jan Dhan Yojana, the worlds largest programme of financial inclusion, has just crossed the
100 million mark and 98.4 per cent of households in India now have bank accounts.
The Swachh Bharat campaign for cleanliness has become a mass movement. This is an issue that affects not only
peoples health but is also an attack on social ills like untouchability and manual scavenging.
The Make in India programme signals our commitment to transforming India into the manufacturing hub of the
world.
The Digital India initiative aims at delivering government services electronically by 2018. It will encompass not
only e-governance, but also broadband for all, IT-enabled education and telemedicine. We have already rolled out
biometric attendance in government offices as a practical example of this initiative.
The Smart Cities programme aims to build 100 smart cities in India which will be well-planned, technologically
integrated and environment-friendly.
The Government has been working in mission mode to implement all these programmes. The Modi Government
is fully committed to good governance, efficiency, accountability, transparency, and speedy decision making.
There are tremendous opportunities today for you to join us, especially in the fields of manufacturing,
infrastructure development, education, health, skills development, science and technology, research and
innovation, knowledge economy and youth development as part of our effort to realise Indias full potential.
Friends, just as Mahatma Gandhi was the greatest ambassador of peace, non-violence and truth during his time,
you can become the ambassadors of the new India. Today, the pravasi is the most significant example of Indias
soft power. Through your work abroad as software gurus, tech wizards, eminent academics and trail blazing
business persons, a clear and powerful message of Indias capabilities has been conveyed to the world. Your
honest work ethic, law abiding and hard working nature have contributed to the global image of India and
Indians.

January 2015

Page 127

The Minister said that most important of all, the diaspora have retained a bit of India in their hearts. Even though
situated thousands of miles away, you have kept the spirit of Bharat alive. For some of you this may be the very
first visit to the land of your fathers or forefathers. For some others it may be yet another link in the voyage of
discovery that you have embarked upon. So global Indians, come, Connect, Celebrate, Contribute and become a
part of the momentous transformation taking place in the country to build Ek Bharat Shrestha Bharat.

Ordinance to amend Citizenship Act promulgated


On the eve of the opening of the three-day meet of Indian diaspora in Gujarat, government promulgated an
ordinance that seeks to merge Person of Indian Origin (PIO) and Overseas Citizenship of India (OCI) schemes, by
which PIOs will also get life-long Indian visa.
The amendments through the ordinance to the Citizenship Act will benefit PIOs and will give them benefits like
life-long visa and exemption from appearing before the local police station on every visit.
The ordinance fulfils Prime Minister Narendra Modi's assurance in New York to Indian diaspora where he had
promised a merger of the two schemes. He had also announced grant of lifetime visa to PIOs.
The decision to amend the Citizenship Act, 1955 was taken after a large number of complaints were received from
PIOs, who often complained of visits to local police stations and stringent visa norms that debarred them from
buying property in India, in comparison to those holding Overseas Citizens of India (OCI) card.
Till now the PIO cardholders were eligible for only 15-year visas in comparison to lifelong visas given to those
having OCI cards.
It will also do away with the clause of foreigners who marry Indians to continuously stay in the country for a
period of one year before they get an Indian citizenship. The amendment will give foreigners a relief of 30 days in
a year when they can travel outside the country.
Definitions: Persons of Indian Origin Card (PIO Card) is a form of identification issued to a Person of Indian
Origin who holds a passport in another country other than Afghanistan, Bangladesh, Bhutan, China, Nepal,
Pakistan, Sri Lanka. The conditions for issuing a PIO card to a person are:
1. Any person who has ever held an Indian passport, or
2. The person's parents, grandparents or great grandparents were born in and were permanent residents of
India and never moved to (i.e., were never nationals of) Bangladesh and Pakistan, or
3. The person is the spouse of a citizen of India or of a PIO and has been so for two years or more, and
4. The person and his/her parents, grandparents or great grandparents must not have been a national of
Bangladesh or Pakistan at any point of time.
The PIO Card Program came into effect on 15 September 2002. The various benefits available to PIO cardholders
are:

No visa required for visiting India during the period of validity of PIO Card.
Exemption from the requirement of registration if stay in India does not exceed 6 months.
Parity with non-resident Indians in respect of facilities available to the latter in economic, financial and
educational fields.
All facilities in the matter of acquisition, holding, transfer and disposal of immovable properties in India
except in matters relating to the acquisition of agricultural/plantation properties.

January 2015

Page 128

Facilities available to children of Non Resident Indians for getting admission to educational institutions in
India including medical colleges, engineering colleges, Institutes of Technology, Institutes of Management etc.
under the general categories.
Facilities available under the various housing schemes of LIC, State Governments and other Government
agencies.

Foreigners of Indian origin (except Pakistan and Bangladesh) are eligible to apply under OCI scheme, if he/she
possesses evidence of self or parents or grandparents:
1.

Being eligible to become a citizen of India at the time of commencement of Indian Constitution i.e.
26.01.1950, or
2. Belonging to a territory that became a part of India after 15.01.1947, or
3. Being a citizen of India on or after 26.01.1950.
Benefits of OCI scheme are as follows:

An Overseas Citizen of India enjoys all rights and privileges available to Non-Resident Indians on a parity
basis excluding the right to invest in agriculture and plantation properties or hold public office.

Though not actual dual citizenship, the privileges afforded by acquiring an OCI card is that now multinational
companies are finding it simpler to hire the OCI cardholders, who enjoy a multiple entry, multipurpose
lifelong visa to visit India. The card provides a lifelong visa to the holder, sparing them the need to obtain
separate work permits.

In addition, OCI cardholders who wish to gain (or regain) Indian citizenship and are willing to renounce their
other citizenship are eligible to apply for Indian citizenship if they have been an OCI cardholder for the
previous five years and have resided in India for at least one of those five years.

They are also exempt from registration with the Foreigners Regional Registration Officer (FRRO) on their
arrival in the country and can stay or live for as long as they wish.

Government Assures PSBs, Financial Institutions


(FIS) of Non-Interference
The Department of Financial Services, Ministry of Finance issued a circular to the Chief Executive Officers (CEOs)
of all Public Sector Banks (PSBs), Financial Institutions (FIs) and Insurance Companies assuring them of noninterference in matters of commercial decisions, transfers, and postings etc. It was conveyed in very clear terms
that the Government will not interfere in the commercial decisions of the Banks/FIs. It is further amplified as
follows:

The Banks/FIs should take all commercial decisions in the best interest of the organization without any fear
or favour. All decisions should be taken based on facts of the case and objectivity. No such decision should be
taken out of any other extraneous considerations such as the influence or the position that the borrower is
holding.
Each Bank/FI should have their own objective, well laid out transfer and posting rules which should be
followed strictly. No exception should be made in such rules at the behest of any recommendation given by
anyone including anybody from the Ministry of Finance. If, for genuine reasons, any exception to the rule is
made, it should be done only by CMD by giving proper reasons.

January 2015

Page 129

Each Bank/FI should have a robust grievance redressal mechanism for borrowers, depositors as well as staff.
The aggrieved person should have an opportunity to represent his case at least at two levels.

It is trusted that the freedom given to Banks/FIs by assurance of non-interference will be used in the most
objective manner. However, if any complaint comes to this Department from anybody informing that exceptions
were made in certain cases without any objective basis, and in order to favour somebody, the person taking such
decision would be accountable.
It may be worthwhile to mention here that the Prime Minister, Shri Narendra Modi during his address to the
CEOs of all the PSBs, FIs and Insurance Companies in the Concluding Session of the two days Bankers Retreat
called Gyan Sangam at National Institute of Banking Management (NIBM), Pune on 3rd January, 2015 had also
told them that the banks would be run professionally, and there would be no interference. But the accountability
was essential. He said the Government had no vested interest, and public sector banks can derive strength from
this fact. This circular is also in line with these directions of the Prime Minister.

Interests of workers in organized and unorganized


sectors
The Ministry of Labour and Employment strives to safeguard the interests of workers from the countrys
organized and unorganized sectors, while simultaneously providing an enabling environment for industry. Labour
is one of the most critical factors of production. The Ministry of Labour & Employment is committed to promote
an environment conducive for the countrys inclusive growth and development.
The welfare and social security of workers besides imparting training to the unskilled labour force via vocational
skills training, to improve their quality of life through progressive policies, programmes, schemes constitutes the
core priorities for the Ministry. Initiatives for Organised workers:
Initiatives by EPFO:
i.
ii.
iii.
iv.
v.

Digitization of complete database of 4,24,58,329 EPF (Employees Provident Fund)subscribers and allotment
of UAN to each of them.
UAN is being seeded with Bank account and Aadhar Card and other KYC details for financial inclusion.
EPF account of employee to be updated monthly and at the same time he will be informed through SMS.
Direct access to their EPF accounts and will also enable them to consolidate all their previous accounts.
Special drive is being taken up for enrolling contract and construction workers.
Initiatives for Unorganised Worker:

i.
ii.
iii.
iv.
v.
vi.

Identification and registration of unorganized workers as per the Unorganized Workers Social Security Act,
2008 leading to creation of database of unorganized workers.
Issue of portable, smart card to unorganized workers with linkages with Aadhar No. and Bank account No.
Convergence of three Social Security Schemes for unorganized workers on a single platform namely RSBY,
AABY and IGNOAPS (Indira Gandhi National Old Age Pension Scheme).
Workers Facilitation Centre as Single point of contact for Social Security Scheme for Unorganized Workers.
Holistic monitoring of schemes for assessment of access to and quality of services to unorganized workers.
Issue of Unorganised Workers Card as per the Act

January 2015

Page 130

National Workers Vocational University:


i.

ii.
iii.

iv.

v.

vi.

vii.

Vocational stream is important for our economy. Recent studies have shown that only around 18% of
engineering graduates are employable due to lack of hands on practice. People with strong skill background
and strong knowledge background are the important drivers in areas like advanced design, testing, research
and teaching/training.
Present academic structure in our country lays great emphasis on class room learning which is not suitable for
providing career pathways to vocational trained persons who acquire very significant experiential learning.
Therefore, in order to provide career pathways in vocational stream leading to higher qualifications, and also
to develop proper research and develop infrastructure for vocational training, a national institute of higher
learning has become absolutely necessary.
Germany has demonstrated the success of vocational training by attracting large number of its population to
this stream. It has several universities offering courses of higher learning which leverage experiential learning
of skilled workforce.
Building upon the agreement in Indo-German cooperation, Ministry of Labour & Employment has constituted
a Steering Committee under the chairpersonship of Secretary, Labour & Employment and with
representatives from NSDA, Ministry of HRD, DEA, Planning Commission, Universities and expertise
institutions and CII to evolve the objectives and other details of the proposed institution.
The Steering Committee has agreed that the Ministry of Labour & Employment should immediately take steps
for setting up National Workers Vocational University in order to leverage experiential learning, provide
pathways for upward mobility and to provide necessary framework and expertise in the areas of research and
institutional development for vocational training. The university would facilitate continuous learning by
Indian workforce. A Core Group is being set up to work out further details.
Collaboration with industry would be a key feature of the structure of the proposed university. Industry
would be associated with its various activities. The university would also have partnerships with other
universities/institutions of higher learning and training institutions. It is proposed that the university would
have main campus at Hyderabad, Telengana with regional campuses at Ludhiana, Kolkata, Gujarat and
Chennai. Land/premises are already available at Ludhiana, Kolkata and Chennai.

Achievements of Ministry of Overseas Indian Affairs


during 2014-15
The Ministry, in coordination with other ministries/agencies prepared an action plan for facilitating the departure
of the stranded Indians in Iraq, Libya to their respective destination. Repatriation of stranded Indian nationals in
Iraq was started in the month of July, 2014 and continued during August, 2014. A total of 6,977 workers have
been evacuated from Iraq and 3,200 workers have been evacuated from Libya.
Plan Scheme on Skill Development for overseas employment was introduced during this year. Seven states namely
Andhra Pradesh, Assam, Karnataka, Kerala, Odisha, Punjab and Tamil Nadu have been identified for
implementation of the Plan Scheme.
One Social Security Agreement with Australia has been signed on 18thNovember, 2014 in Canberra (Australia)
Emigration clearance process had been completely computerized. Process of ISO certification of all 10 offices of
Protector of Emigrants is under way.
Pravasi Bharatiya Divas (PBD) - To connect India to its vast overseas diaspora and bring their knowledge,
expertise and skills on a common platform, the PBD Convention the annual flagship event of MOIA is organized

January 2015

Page 131

from 7th-9th January every year since 2003. Twelve PBDs have been held earlier in various places of India so far
since 2013.
Regional Pravasi Bharatiya Divas (RPBD) - This Ministry organizes Regional Pravasi Bharatiya Divas
(RPBD) to engage with the Indian diaspora who are unable to attend annual Pravasi Bharatiya Divas in
India. So far, 8 successful RPBD have been held at New York, Singapore, The Hague, Durban, Toronto, Mauritius,
Sydney and London respectively eliciting enthusiastic support from the Indian diaspora and the local
Government. 8th Regional Pravasi Bharatiya Divas (RPBD) Convention was organized in London, in October,
2014.
Know India Programme (KIP) -The objective of the Ministry`s Know India Programme is to help familiarize
Indian Diaspora youth, in the age group of 18-26 years, with the developments and achievements made by the
country and strengthening their bonds with their homeland. KIP provides a unique forum for students and young
professionals of Indian origin to visit India, share their views, expectations and experiences and to know
contemporary India. The Ministry has conducted 29 editions of KIPs so far and a total of 903 overseas Indian
youth participated in these programmes. The 30 th KIP was held in 2014. The participants are selected based on
nominations received from Indian Missions/Posts abroad. They are provided hospitality and reimbursed 90% of
their economy class return airfare from their respective countries to India.
Study India Programme (SIP) - Like KIP, Study India Programme (SIP) connects with the youth of Indian
diaspora through educational institutions. It enables Overseas Indian youth to undergo short term courses in an
Indian University to familiarize them with the history, heritage, art, culture, socio-political, economic
developments etc. of India. The focus of the programme is on academic orientation and research. Cost of
boarding, lodging, local transportation, course fee during the programme and 90% of the cost of air-ticket by
economy class is borne by Govt. of India.
Social Security Agreements (SSAs) - India has signed 20 SSAs with 18 countries. These Agreements provide
for avoidance of payment of double social security contribution by Indian workers, totalization of contribution and
exportability of benefits.
Mahatma Gandhi Pravasi Suraksha Yojana - The Ministry had introduced a Pension and Life Insurance
Fund scheme called Mahatma Gandhi Pravasi Suraksha Yojana (MGPSY) for Overseas Indian workers having
Emigration Check Required (ECR) passports. Launched in UAE on 27 thOctober, 2013 to encourage and enable
overseas Indian workers and by giving government contribution to save for their Return and Resettlement (R&R),
save for their old age, the scheme obtains a Life Insurance cover against natural death during the period of
coverage.
e-Migrate Project - The Ministry is implementing a comprehensive e-governance project on migration, eMigrate which aims to transform emigration into a simple, transparent, orderly and humane process. The Project
is aimed at improving the quality of services to emigrant workers and will help reduce the access cost of service.
Bilateral Memoranda of Understanding on Labour - Since the largest number of Indian expatriates are
working in the Kingdom of Saudi Arabia, an Agreement on Labour Co-operation for Domestic Service Workers
(DSWs) Recruitment between the Ministry of Overseas Indian Affairs and the Ministry of Labour of the Kingdom
of Saudi Arabia (KSA) has been signed on 2ndJanuary, 2014. The Agreement paves the way for a comprehensive
MOU on manpower.
Indian Community Welfare Fund (ICWF) - Overseas Indian Workers are estimated at over 6 million. The
Indian Community Welfare Fund was set up in the year 2009 and is applicable to all Indian missions. The fund
aims to provide the following services on means tested basis in deserving cases:

January 2015

Page 132

Boarding and lodging for distressed Overseas Indian workers in Household / domestic sectors and unskilled
labourers
Extending emergency medical care to the Overseas Indians in need
Providing air passage to stranded Overseas Indians in need
Providing initial legal assistance to the Overseas Indians in deserving cases
Expenditure on incidentals and for airlifting the mortal remains to India or local cremation/burial of the
deceased Overseas Indians in such cases where the sponsor is unable or unwilling to do so as per the contract
and the family is unable to meet the cost
Providing the payment of penalties in respect of Indian nationals for illegal stay in the host country where
prima facie the worker is not at fault
Providing the payment of small fines/penalties for the release of Indian nationals in jail/detention centre

Prime Ministers Global Advisory Council of Overseas Indians (PMGAC-OI) - The Ministry has
constituted the Prime Ministers Global Advisory Council of People of Indian Origin (PMGAC-OI) to draw upon
the experience and knowledge of eminent people of Indian origin in diverse fields from across the world. The
Council is chaired by the Prime Minister. The advice of the council is recommendatory in nature and serves as a
valuable input for policy formulation and programme planning. Former Prime Minister Dr. Manmohan Singh
presided over the fifth meeting of the Global Advisory Council of Overseas Indian on January 8, 2014 at New
Delhi.
Protector General of Emigrants (PGE) - Operational matters relating to emigration, the provision of
emigration services to emigrants and the enforcement of Emigration Act, 1983 are under the Protector General of
Emigrants (PGE). The PGE is the statutory authority under the Emigration Act who is responsible for the welfare
and protection of emigrant workers. He also oversees the ten field offices of the Protectors of Emigrants.
Registration of Recruiting Agents - The Emigration Act, 1983 (Section 10) requires that those who wish to
recruit Indian citizens for employment abroad shall register themselves with the registering authority, i.e. the
Protector General of Emigration (PGE). As on 30-10-2014, there were 1347 existing recruiting agents.
The Swarnapravas Yojana The Plan scheme of MOIA, namely the Swarnapravas Yojana will adhere to the
broad objectives of skill development in India, as envisioned by the National Skill Development Policy 2009 and
achieve the target of training 5 Million people by 2022 as laid down under this policy
The main objective is to position India as a preferred source country for skilled and trained workers in select
sectors that face skill shortages in the international labour market, and in which India enjoys competitive
advantage.

January 2015

Page 133

President of India Congratulates DRDO on the


Successful Test-Firing of Agni-V
The President of India, Shri Pranab Mukherjee congratulated DRDO on the successful test-firing of the third
developmental trial of Agni-V surface-to-surface missile.
In his message to Dr. Avinash Chander, Scientific Advisor to Raksha Mantri and Director-General, DRDO, the
President has said, I extend hearty congratulations to all those associated with the successful test-firing of the
third developmental trial of Indias indigenous Agni-V surface-to-surface missile.
The Agni-V is a three-stage, solid-fueled missile that can travel 5,000 km while carrying a 1,000 km payload,
making it Indias longest range missile. It is often referred to as Indias first intercontinental ballistic missile
(ICBM) in local media. Although it demonstrates mastery of all the necessary ICBM technologies, technically it is
only an intermediate ballistic missile as ICBMs have ranges of at least 5,500 km.
It was quickly dubbed the China killer by Indian media outlets when it was first tested in 2012 because it is the
first Indian ballistic missile capable of holding most of China including major cities like Beijing under nuclear
threat. China has long had the ability to reach all of India with nuclear-armed missiles, putting Delhi at a relative
disadvantage.
This is the third time India has tested the Agni-V following the first test in 2012 and another one in 2013. A month
before the second test, Tessy Thomas, the director of the Agni
Missile Project at DRDO, said that the Agni-V would be tested
two or three more times before being inducted into the Indian
armed
forces.
Unlike the earlier largely rail-mobile missiles, Agni-V can be
easily stored in hermetically sealed canisters and swiftly
transported atop launcher trucks by road. This will give the
armed forces the required operational flexibility to pick and
choose from where to launch the missiles. Agni-V boasts a
highly accurate inertial navigation system.
Once inducted into the armed forces, DRDO will go to work on
equipping future Agni-V missiles with multiple independently
targetable reentry vehicles (MIRVs), which will allow each missile to carry between three and ten nuclear
warheads, each of one of which can be aimed at a different target. China is also building MIRVed missiles, setting
the stage for a dangerous arms race that could destabilize nuclear Asia.

More Autonomy to be Given in Decision Making to


DPSUs and OFBs for Better Performance
The Defence Minister Shri Manohar Parrikar said MoD would be bringing about major changes in the Defence
Procurement Procedure and the Defence Production Policy to provide greater autonomy to the Defence Public
Sector Undertakings (DPSUs) and Ordnance Factory Board (OFB) units for their expansion and diversification.
Addressing the Consultative Committee attached to his Ministry, he said, we need to delegate powers to DPSUs to
enable them to take decisions so that they improve the serviceability of the platforms available to the Armed

January 2015

Page 134

Forces. Every machine in operation is like adding an additional equipment. DPSUs will be provided support but
they must think like a commercial organisation, he said.
Referring to the Make in India Procedure in Defence, Shri Parrikar said it needs further improvement. Defence
industry in India is a unique industry where the only customer is the Services. The Meeting discussed in detail the
performance of the 41 Ordnance factories and 9 DPSUs.
Taking part in the discussions, Members of Parliament wanted to know whether the Government has drawn up a
clear roadmap to reduce Defence imports. Some members felt that there was a concerted campaign to denigrate
the public sector and to promote the private sector. They felt that unlike consumer products, the design and
development of defence product has a long gestation and the contribution of DPSUs has to be appreciated in that
light.
They expressed the view that the private sector must be promoted in a big way, but not at the cost of the public
sector.

Strategic partnerships is a big step to scale skilling


initiatives in India: Shri Rajiv Pratap Rudy
The Ministry of Skill Development and Entrepreneurship (MSDE) and National Skill Development Corporation
(NSDC) initiated a strategic partnership through a joint workshop withWadhwani Foundation with the aim to
catalyze skill development and entrepreneurship initiatives of Government of India.
At the event, the Minister of State (I/C) Shri Rajiv Pratap Rudy said that strategic partnerships with organisations
that express deep interest to promote entrepreneurship and encourage skill development initiatives in India is a
big step towards scaling skilling initiatives in India. He stated this cooperation has given us enough strength and
support to carry forward the initiatives in this sector. The creation of the Ministry of Skill Development and
Entrepreneurship is a dream project of the Honble Prime Minister, Shri Narendra Modi, envisaging bringing
under one umbrella skill development programmes currently spread across various Ministries and Departments.
The outcome is to create more jobs such that people who are skilled and trained get employed and the demand of
the demographic dividend of the country is satiated.
Present at the event, Shri Sunil Arora, Secretary, Ministry of Skill Development and Entrepreneurship stated that
the National Entrepreneurship Network (NEN) of the foundation has created a strong network through 600
colleges, 4000 mentors and 3000 faculty members that continue to create and support emerging young
entrepreneurs. The entire ecosystem of skilling is intricate and involves not just skilling but also re-skilling, upskilling and multi-skilling. These are the real islands of excellence and need to be scaled up throughout the
country.

January 2015

Page 135

Smart cities are all about 4 S and 4 P


Minister of Urban Development Shri M.Venkaiah Naidu has plainly asked the states if they were ready to make
their cities and towns smart under the centres initiative of building 100 smart cities.
Laying bare the challenges and issues, Shri Naidu has sought to motivate the states and urban local bodies to rise
to the occasion by reorienting their mindsets and approaches towards urban management and make a success of
smart cities initiative in the larger interest of the country and its people. He asserted that Building smart cities is
challenging but doable. He said building smart cities is all about 4 S and 4 P. Smart Leadership, Smart
Governance, Smart Technologies and Smart People make a city smart. The resource challenge can be met if we
make a success of Public-Private-People Partnership.
Elaborating on the concept of 4 S, Shri Naidu said, Smart Leadership should be guided by a vision and mission,
have courage to take quick and bold decisions, adopt best practices and attract investments. Smart governance is
needed to ensure transparency and accountability through adoption of technology platforms to reduce human to
human interface and ensure online delivery of services and real time information besides promoting participation
of citizens in decision making and execution. Smart technologies will enable efficient energy, traffic, solid waste
and waste to wealth management, real time information and service delivery etc. People should be smart enough
to partner in the city development by willing to pay for the value addition to the services, able to question the
authorities and enforce accountability. The Minister said that smart cities shall be liveable, workable, inclusive
and sustainable.
Shri Venkaiah Naidu also made it clear that states and urban local bodies have to play the key role in building
smart cities while the central government could do the handholding as an enabler besides providing some
financial assistance. The states and urban local bodies have come out with required policy and procedural
innovations for attracting investments.
Shri M.Venkaiah Naidu complimented the Department of Posts for issuing a Commemorative Stamp on Swachh
Bharat on the occasion of the 67th Death Anniversary of Mahatma Gandhi which is being observed as Martyrs
Day. He said that while the Mahatma effectively used Satyagraha during the freedom struggle, the country and its
people need to resort to Swachhagraha to make the country clean by October 2, 2019 as a befitting tribute to him
on the occasion of Mahatmas 150th Birth Anniversary.
Shri Naidu observed that total sanitation is the need of the hour given its adverse impacts on peoples health and
economy. He noted that inadequate sanitation is costing about US $ 54 billion i.e 6.40% of GDP each year besides
resulting in 18 lakh deaths each year due to diarrheal diseases. About 80% of the diseases are water-borne and
water related following water pollution, contamination and logging. He informed that about 19% of urban
households do not have toilets within their premises and about 13% are defecating in the open.
Stating that massive awareness campaign is required to change the mindsets of people to adopt clean sanitation
practices, Shri Naidu noted that the Swachh Bharat stamp released today would help in this regard. He said,
awareness generation and infrastructure development should be followed by stricter penalties to ensure total
sanitation.
Shri Shankar Aggarwal, Secretary(UD) elaborated on the broad contours of four new initiatives in urban sector
viz., Swachh Bharat Mission, Smart Cities, Infrastructure Development in 500 cities and Heritage Development
and Augmentation Yojana(HRIDAY).

January 2015

Page 136

PM's remarks at India-US CEO Forum


The Prime Minister said big projects involving large investment would be monitored by the Prime Minister`s
Office. He was speaking at the interactive India US CEO Forum, in the presence of US President Barack Obama,
and top business leaders from both countries.
After listening to suggestions made by these business leaders, the Prime Minister said the solutions to most of the
issues mentioned would be found through three things:

Proactive, pro people good governance


A policy driven state
Consistency in policy

Stating that Intellectual Property Rights are an important issue, he said all countries of the world should together
find a solution to it.
The Prime Minister highlighted key priorities of his Government including improving "Ease of Doing Business",
and the "Make in India" initiative. He mentioned the importance of investment in the infrastructure sector,
especially in the Railways.
He said, in agriculture, his vision of per drop more crop would help tackle farmer issues, and cope with climate
issues and water shortages. The Prime Minister said it is extremely important to listen to investors, as this helps
speed up decisions. The Prime Minister also mentioned his mantra of skill, scale and speed, and said he keeps
states on board while taking decisions.

US-India Joint Strategic Vision for the Asia-Pacific


and Indian Ocean Region
As the leaders of the worlds two largest democracies that bridge the Asia-Pacific and Indian Ocean region and
reflecting our agreement that a closer partnership between the United States and India is indispensable to
promoting peace, prosperity and stability in those regions, we have agreed on a Joint Strategic Vision for the
region.
India and the United States are important drivers of regional and global growth. From Africa to East Asia, we will
build on our partnership to support sustainable, inclusive development, and increased regional connectivity by
collaborating with other interested partners to address poverty and support broad-based prosperity.
To support regional economic integration, we will promote accelerated infrastructure connectivity and economic
development in a manner that links South, Southeast and Central Asia, including by enhancing energy
transmission and encouraging free trade and greater people-to-people linkages.
Regional prosperity depends on security. We affirm the importance of safeguarding maritime security and
ensuring freedom of navigation and over flight throughout the region, especially in the South China Sea.
We call on all parties to avoid the threat or use of force and pursue resolution of territorial and maritime disputes
through all peaceful means, in accordance with universally recognized principles of international law, including
the United Nations Convention on the Law of the Sea.

January 2015

Page 137

We will oppose terrorism, piracy, and the proliferation of weapons of mass destruction within or from the region.
We will also work together to promote the shared values that have made our countries great, recognizing that our
interests in peace, prosperity and stability are well served by our common commitment to the Universal
Declaration of Human Rights (UDHR).
We commit to strengthening the East Asia Summit on its tenth anniversary to promote regional dialogue on key
political and security issues, and to work together to strengthen it. In order to achieve this regional vision, we will
develop a roadmap that leverages our respective efforts to increase ties among Asian powers, enabling both our
nations to better respond to diplomatic, economic and security challenges in the region.
As part of these efforts, the United States welcomes India`s interest in joining the Asia Pacific Economic
Cooperation forum, as the Indian economy is a dynamic part of the Asian economy.
Over the next five years, we will strengthen our regional dialogues, invest in making trilateral consultations with
third countries in the region more robust, deepen regional integration, strengthen regional forums, explore
additional multilateral opportunities for engagement, and pursue areas where we can build capacity in the region
that bolster long-term peace and prosperity for all.

Joint Statement during the visit of President of USA to


India ''Shared Effort; Progress for All''
President of India and the Prime Minister of India welcomed the U.S. President as the Chief Guest at India`s 66th
Republic Day celebrations, the first U.S. President to grace this historic event.
Prime Minister Narendra Modi and President Barack Obama assessed the extensive bilateral strategic and global
partnership between their two countries and pledged to continue to enhance cooperation across the spectrum of
human endeavor to better their citizens lives and that of the global community.
Noting that the multifaceted partnership between the United States and India is rooted in shared values of
democracy and strong economic and people-to-people ties, President Obama and Prime Minister Modi elevated
the bilateral relationship through their endorsement of a new India-U.S. Delhi Declaration of Friendship, which
builds on their 30 September Vision Statement by articulating tangible principles to guide ongoing efforts to
advance mutual prosperity, a clean and healthy environment, greater economic cooperation, regional peace,
security and stability for the larger benefit of humankind.
Recognizing the important role that both countries play in promoting peace, prosperity, stability and security in
the Asia-Pacific and Indian Ocean Region, and noting that Indias Act East Policy and the United States
rebalance to Asia provide opportunities for India, the United States, and other Asia-Pacific countries to work
closely to strengthen regional ties, the Leaders announced a Joint Strategic Vision to guide their engagement in
the region.
The Prime Minister and the President acknowledged and expressed satisfaction at the qualitative reinvigoration of
strategic ties and the intensity of substantive interactions since the Prime Minister`s visit to Washington in
September 2014. They appreciated the focused action and accomplishments by both sides on the decisions taken
during the Summit in September and in this regard, they welcomed:

The 30 September 2014 signing of an implementing agreement between the National Aeronautics and Space
Administration (NASA) and Indian Space Research Organisation (ISRO) to conduct the joint NASA-ISRO
Synthetic Aperture Radar (NISAR) mission.

January 2015

Page 138

The convening of the Defence Policy Group and its subgroups on 28-29 October 2014 to pursue stronger and
expanded bilateral defence cooperation.
The breakthrough between India and the United States on issues relating to the implementation of the Bali
Ministerial Decisions regarding public stockholding for food security purposes, the WTO Trade Facilitation
Agreement, and post Bali work.
Convening of the U.S.-India Joint Commission Meeting on Science and Technology Cooperation in New Delhi
on 17 November 2014 to review, exchange views, and advance cooperation in diverse areas of science and
technology and foster engagement in techno-entrepreneurship and innovation partnership for mutual benefit.
Convening of the India-U.S. Higher Education Dialogue in New Delhi on 17 November 2014 to further
bilateral cooperation in this field, strengthen partnerships between Indian and U.S. universities and
community colleges, improve student and scholar mobility, and promote faculty collaboration.
The signing of the MoU on 18 November 2014 between Indian Renewable Energy Development Agency Ltd.
and the Export-Import Bank of the United States, which would make available up to $1 billion in financing to
facilitate expanded cooperation and enhance U.S. private sector investment in Indian clean energy projects.
Convening of the High Technology Cooperation Group on 20-21 November 2014 to shape a cooperative
agenda on high technology goods, including export control-related trade in homeland security technologies,
high technology manufacturing equipment including machine tools, defence trade, and fostering collaboration
in biotechnology, pharmaceuticals, medical devices, and health-related information technology.
Convening of the Smart Cities Conclave on 22 November 2014 organised by the U.S.-India Business Council
in cooperation with the Ministry of Urban Development and the Mayors and Commissioners of Ajmer
(Rajasthan), Allahabad (Uttar Pradesh) and Vishakhapatnam (Andhra Pradesh) and the decision by the
Government of India to constitute a high-level committee for each of the three Smart Cities comprising
different departments of the Central Government, the state governments, local governments, and
representatives of the U.S. industry.
Signing of three MoUs between the State Governments of Andhra Pradesh, Uttar Pradesh, and Rajasthan and
the U.S. Trade and Development Agency on 25 January 2015 to develop Vishakhapatnam, Allahabad, and
Ajmer as Smart Cities with the participation of U.S. industry, in furtherance of the commitment made by the
Leaders in September 2014.
The recent finalization of the 2015 Framework for the U.S.-India Defense Relationship, which will guide and
expand the bilateral defence and strategic partnership over the next ten years.
Continuing bilateral engagement on the Defence Technology and Trade Initiative (DTTI), including the 22
January 2015 agreement in principle to pursue co-production and co-development of four pathfinder projects,
form a working group to explore aircraft carrier technology sharing and design, and explore possible
cooperation on development of jet engine technology.

Prime Minister Modi and President Obama jointly appreciated the significant efforts undertaken by both sides in
recent months to re-energize the strategic partnership, and affirmed expanding the substantive underpinnings of
our diversified bilateral strategic partnership including through expanded strategic consultations, stronger
defence, security, and economic cooperation.
President Obama also reiterated his support for Prime Minister Modi`s vision to transform India, and recognized
that India`s focus on its development priorities presented substantial opportunities for forging stronger IndiaU.S. economic ties and greater people-to-people contacts. Reaffirming that Indias rise is also in the interest of the
United States, regional and global stability, and global economic growth, President Obama reiterated the United
States` readiness to partner with India in this transformation. The two leaders pledged to translate their
commitment of "Chalein Saath Saath: "Forward Together We Go" of September into action through "Sanjha
Prayaas; Sab Ka Vikaas": "Shared Effort; Progress For All".

January 2015

Page 139

Both sides also acknowledged that the Internet was a central element of the information society and a powerful
enabler of global economic and social progress. Both sides also noted that the growth of the Internet in the coming
decade would be from developing countries, of which India would be a significant contributor, especially in the
context of its "Digital India" programme.
The Leaders recognized that a digital divide persists between and within countries in terms of the availability,
affordability and use of information and communications technologies, and they stressed the need to continue to
bridge that divide, to ensure that the benefits of new technologies, especially information and communications
technologies for development, are available to all people, including the poorest of the poor.
President Obama thanked Prime Minister Modi and the people of India for the extraordinary hospitality extended
to him on his second presidential visit to India, and he congratulated the nation on the celebration of its 66th
Republic Day. The Leaders reflected proudly on recent achievements and looked forward to continuing to work
together to build a U.S.-India partnership that is transformative for their two peoples and for the world.

India-U.S. Delhi Declaration of Friendship


"Chalein saath saath; forward together we go. Reflecting the close ties between our two great democracies, India
and the United States agree to elevate our long-standing strategic partnership, with a Declaration of Friendship
that strengthens and expands the relationship between our two countries.
"Sanjha Prayaas, SabkaVikaas; Shared Effort, Progress For All. Each step we take to strengthen the relationship
is a step towards shaping international security, regional and global peace, prosperity and stability for years to
come.
Signaling the natural affinity enjoyed by our two nations, this Declaration proclaims a higher level of trust and
coordination that will continue to draw our Governments and people together across the spectrum of human
endeavor for a better world.
The India-U.S. Vision Statement endorsed in September 2014 committed our nations to a long-term partnership
for prosperity and peace, through which our countries work together to make our citizens and the global
community, safer and more prosperous.
The Declaration makes tangible and enduring the commitment of our two countries to harness the inherent
potential of our two democracies, and upgrades the unique nature of our relationship, committing our
Governments to work through areas of difference.
Through this Declaration of Friendship and in keeping with our national principles and laws, we respect:
Equal opportunity for all our people through democracy, effective governance, and fundamental freedoms;

An open, just, sustainable, and inclusive rule-based global order;


The importance of strengthened bilateral defense ties;
The importance of adapting to and mitigating the impact of climate change through national, bilateral and
multilateral efforts;
The beneficial impact that sustainable, inclusive development will have on our two countries and the world;
The centrality of economic policies that support the creation of strong and sustainable jobs, inclusive
development, and rising incomes; and

January 2015

Page 140

Transparent and rule-based markets that seek to drive the trade and investment necessary to uplift all
members of society and promote economic development.

As part of this Declaration of Friendship, we commit to:

Hold regular Summits with increased periodicity;


Elevate the Strategic Dialogue to a Strategic and Commercial Dialogue, of which the Strategic elements would
continue to be chaired by the External Affairs Minister of India and the U.S. Secretary of State and the
Commercial components of the Dialogue would be led by Indias Minister of Trade and Commerce and the
U.S. Secretary of Commerce. This reflects the United States` and India`s commitment to strengthen
commercial and economic ties to advance mutual prosperity, regional economic growth and stability;
Establish secure hotlines between the Prime Minister of India and the President of the United States of
America and National Security Advisors;
Cooperate to develop joint ventures on strategically significant projects;
Build meaningful security and effective counterterrorism cooperation;
Hold regional and multilateral consultations;
Consult and hold regular consultations in multilateral forums; and
Leverage the talents and strengths of our people to enhance sustainable, inclusive development around the
globe.

Recommendations of
restructuring of FCI

High

Level

Committee

on

High Level Committee (HCL) on restructuring of Food Corporation of India (FCI) has submitted its report to the
Government. It was submitted by Shri Shanta Kumar, Chairman of the Committee to the Prime Minister, Shri
Narendra Modi. The HCL was set up by the Government on 20th August, 2014. Executive Summary of the report
is as followsBackdrop:
Government of India (GoI) set up a High Level Committee (HLC) in August 2014 with Shri Shanta Kumar as the
Chairman, six members and a special invitee to suggest restructuring or unbundling of FCI with a view to improve
its operational efficiency and financial management. GoI also asked HLC to suggest measures for overall
improvement in management of food grains by FCI; to suggest reorienting the role and functions of FCI in MSP
operations, storage and distribution of food grains and food security systems of the country; and to suggest cost
effective models for storage and movement of grains and integration of supply chain of food grains in the country.
The HLC had wide consultations with various stakeholders in its several meetings in different parts of the country.
It also invited comments through advertisements in newspapers and electronic media. HLC would like to
gratefully acknowledge that it has benefitted immensely from this consultative process, and many of its
recommendations are based on very intensive discussions with stakeholders.
In order to conceive reorienting the role of FCI and its consequent restructuring, one has to revisit the basic
objectives with which FCI was created, and what was the background of food situation at that time. It is against
that backdrop, one has to see how far FCI has achieved its objectives, what the current situation on food grain
front, what are the new challenges with regard to food security, and how best these challenges can be met with a
reoriented or restructured institution like FCI.

January 2015

Page 141

FCI was set up in 1965 (under the Food Corporation Act, 1964) against the backdrop of major shortage of grains,
especially wheat, in the country. Imports of wheat under PL- 480 were as high as 6-7 MMT, when country`s wheat
production hovered around 10-12 MMT, and country did not have enough foreign exchange to buy that much
quantity of wheat from global markets. Self-sufficiency in grains was the most pressing objective, and keeping that
in mind high yielding seeds of wheat were imported from Mexico. Agricultural Prices Commission was created in
1965 to recommend remunerative prices to farmers, and FCI was mandated with three basic objectives: (1) to
provide effective price support to farmers; (2) to procure and supply grains to PDS for distributing subsidized
staples to economically vulnerable sections of society; and (3) keep a strategic reserve to stabilize markets for
basic food grains.
How far FCI has achieved these objectives and how far the nation has moved on food security front? The NSSO`s
(70th round) data for 2012-13 reveals that of all the paddy farmers who reported sale of paddy during JulyDecember 2012, only 13.5 percent farmers sold it to any procurement agency (during January-June 2013, this
ratio for paddy farmers is only 10 percent), and in case of wheat farmers (January-June, 2013), only 16.2 percent
farmers sold to any procurement agency. Together, they account for only 6 percent of total farmers in the country,
who have gained from selling wheat and paddy directly to any procurement agency. That diversions of grains from
PDS amounted to 46.7 percent in 2011-12 (based on calculations of offtake from central pool and NSSO`s (68th
round) consumption data from PDS); and that country had hugely surplus grain stocks, much above the buffer
stock norms, even when cereal inflation was hovering between 8-12 percent in the last few years. This situation
existed even after exporting more than 42 MMT of cereals during 2012-13 and 2013-14 combined, which India has
presumably never done in its recorded history.
What all this indicates is that India has moved far away from the shortages of 1960s, into surpluses of cereals in
post-2010 period, but somehow the food management system, of which FCI is an integral part, has not been able
to deliver on its objectives very efficiently. The benefits of procurement have not gone to larger number of farmers
beyond a few states, and leakages in TPDS remain unacceptably high. Needless to say, this necessitates a re-look
at the very role and functions of FCI within the ambit of overall food management systems, and concerns of food
security.
Major Recommendations of HLC:
On procurement related issues
HLC recommends that FCI hand over all procurement operations of wheat, paddy and rice to states that have
gained sufficient experience in this regard and have created reasonable infrastructure for procurement. These
states are Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha and Punjab (in alphabetical order).
FCI will accept only the surplus (after deducting the needs of the states under NFSA) from these state
governments (not millers) to be moved to deficit states. FCI should move on to help those states where farmers
suffer from distress sales at prices much below MSP, and which are dominated by small holdings, like Eastern
Uttar Pradesh, Bihar, West Bengal, Assam etc. This is the belt from where second green revolution is expected,
and where FCI needs to be pro-active, mobilizing state and other agencies to provide benefits of MSP and
procurement to larger number of farmers, especially small and marginal ones.
DFPD/FCI at the Centre should enter into an agreement with states before every procurement season regarding
costing norms and basic rules for procurement. Three issues are critical to be streamlined to bring rationality in
procurement operations and bringing back private sector in competition with state agencies in grain procurement:
(1) Centre should make it clear to states that in case of any bonus being given by them on top of MSP, Centre will
not accept grains under the central pool beyond the quantity needed by the state for its own PDS and OWS; (2)
the statutory levies including commissions, which vary from less than 2 percent in Gujarat and West Bengal to
14.5 percent in Punjab, need to be brought down uniformly to 3 percent, or at most 4 percent of MSP, and this

January 2015

Page 142

should be included in MSP itself (states losing revenue due to this rationalization of levies can be compensated
through a diversification package for the next 3-5 years); (3) quality checks in procurement have to be adhered to,
and anything below the specified quality will not be acceptable under central pool. Quality checks can be done
either by FCI and/or any third party accredited agency in a transparent manner with the help of mechanized
processes of quality checking. HLC also recommends that levy on rice millers be done away with. HLC notes and
commends that some steps have been taken recently by DFPD in this direction, but they should be
institutionalized for their logical conclusion.
Negotiable warehouse receipt system (NWRs) should be taken up on priority and scaled up quickly. Under this
system, farmers can deposit their produce to the registered warehouses, and get say 80 percent advance from
banks against their produce valued at MSP. They can sell later when they feel prices are good for them. This will
bring back the private sector, reduce massively the costs of storage to the government, and be more compatible
with a market economy. GoI (through FCI and Warehousing Development Regulatory Authority (WDRA)) can
encourage building of these warehouses with better technology, and keep an on-line track of grain stocks with
them on daily/weekly basis. In due course, GoI can explore whether this system can be used to compensate the
farmers in case of market prices falling below MSP without physically handling large quantities of grain.
GoI needs to revisit its MSP policy. Currently, MSPs are announced for 23 commodities, but effectively price
support operates primarily in wheat and rice and that too in selected states. This creates highly skewed incentive
structures in favour of wheat and rice. While country is short of pulses and oilseeds (edible oils), their prices often
go below MSP without any effective price support. Further, trade policy works independently of MSP policy, and
many a times, imports of pulses come at prices much below their MSP. This hampers diversification. HLC
recommends that pulses and oilseeds deserve priority and GoI must provide better price support operations for
them, and dovetail their MSP policy with trade policy so that their landed costs are not below their MSP.
On PDS and NFSA related issues
HLC recommends that GoI has a second look at NFSA, its commitments and implementation. Given that leakages
in PDS range from 40 to 50 percent, and in some states go as high as 60 to 70 percent, GoI should defer
implementation of NFSA in states that have not done end to end computerization; have not put the list of
beneficiaries online for anyone to verify, and have not set up vigilance committees to check pilferage from PDS.
HLC also recommends to have a relook at the current coverage of 67 percent of population; priority households
getting only 5 kgs/person as allocation; and central issue prices being frozen for three years at Rs 3/2/1/kg for
rice/wheat/coarse cereals respectively. HLC`s examination of these issue reveals that 67 percent coverage of
population is on much higher side, and should be brought down to around 40 percent, which will comfortably
cover BPL families and some even above that; 5kg grain per person to priority households is actually making BPL
households worse off, who used to get 7kg/person under the TPDS. So, HLC recommends that they be given
7kg/person. On central issue prices, HLC recommends while Antyodya households can be given grains at Rs
3/2/1/kg for the time being, but pricing for priority households must be linked to MSP, say 50 percent of MSP.
Else, HLC feels that this NFSA will put undue financial burden on the exchequer, and investments in agriculture
and food space may suffer. HLC would recommend greater investments in agriculture in stabilizing production
and building efficient value chains to help the poor as well as farmers.
HLC recommends that targeted beneficiaries under NFSA or TPDS are given 6 months ration immediately after
the procurement season ends. This will save the consumers from various hassles of monthly arrivals at FPS and
also save on the storage costs of agencies. Consumers can be given well designed bins at highly subsidized rates to
keep the rations safely in their homes.
HLC recommends gradual introduction of cash transfers in PDS, starting with large cities with more than 1
million population; extending it to grain surplus states, and then giving option to deficit states to opt for cash or

January 2015

Page 143

physical grain distribution. This will be much more cost effective way to help the poor, without much distortion in
the production basket, and in line with best international practices. HLC`s calculations reveal that it can save the
exchequer more than Rs 30,000 crores annually, and still giving better deal to consumers. Cash transfers can be
indexed with overall price level to protect the amount of real income transfers, given in the name of lady of the
house, and routed through Prime Minister`s Jan-Dhan Yojana (PMJDY) and dovetailing Aadhaar and Unique
Identification (UID) number. This will empower the consumers, plug high leakages in PDS, save resources, and it
can be rolled out over the next 2-3 years.
On stocking and movement related issues
HLC recommends that FCI should outsource its stocking operations to various agencies such as Central
Warehousing Corporation, State Warehousing Corporation, Private Sector under Private Entrepreneur Guarantee
(PEG) scheme, and even state governments that are building silos through private sector on state lands (as in
Madhya Pradesh). It should be done on competitive bidding basis, inviting various stakeholders and creating
competition to bring down costs of storage.
India needs more bulk handling facilities than it currently has. Many of FCI`s old conventional storages that have
existed for long number of years can be converted to silos with the help of private sector and other stocking
agencies. Better mechanization is needed in all silos as well as conventional storages.
Covered and plinth (CAP) storage should be gradually phased out with no grain stocks remaining in CAP for more
than 3 months. Silo bag technology and conventional storages where ever possible should replace CAP.
Movement of grains needs to be gradually containerized which will help reduce transit losses, and have faster
turn-around-time by having more mechanized facilities at railway sidings.
On Buffer Stocking Operations and Liquidation Policy
One of the key challenges for FCI has been to carry buffer stocks way in excess of buffer stocking norms. During
the last five years, on an average, buffer stocks with FCI have been more than double the buffer stocking norms
costing the nation thousands of crores of rupees loss without any worthwhile purpose being served. The
underlying reasons for this situation are many, starting with export bans to open ended procurement with
distortions (through bonuses and high statutory levies), but the key factor is that there is no pro-active liquidation
policy. DFPD/FCI have to work in tandem to liquidate stocks in OMSS or in export markets, whenever stocks go
beyond the buffer stock norms. The current system is extremely ad-hoc, slow and costs the nation heavily. A
transparent liquidation policy is the need of hour, which should automatically kick-in when FCI is faced with
surplus stocks than buffer norms. Greater flexibility to FCI with business orientation to operate in OMSS and
export markets is needed.
On Labour Related Issues
FCI engages large number of workers (loaders) to get the job of loading/unloading done smoothly and in time.
Currently there are roughly 16,000 departmental workers, about 26,000 workers that operate under Direct
Payment System (DPS), some under no work no pay, and about one lakh contract workers. A departmental worker
(loader) costs FCI about Rs 79,500/per month (April-Nov 2014 data) vis-a-vis DPS worker at Rs 26,000/per
month and contract labour costs about Rs 10,000/per month. Some of the departmental labours (more than 300)
have received wages (including arrears) even more than Rs 4 lakhs/per month in August 2014. This happens
because of the incentive system in notified depots, and widely used proxy labour. This is a major aberration and
must be fixed, either by de-notifying these depots, or handing them over to states or private sector on service
contracts, and by fixing a maximum limit on the incentives per person that will not allow him to work for more

January 2015

Page 144

than say 1.25 times the work agreed with him. These depots should be put on priority for mechanization so that
reliance on departmental labour reduces. If need be, FCI should be allowed to hire people under DPS/NWNP
system. Further, HLC recommends that the condition of contract labour, which works the hardest and are the
largest in number, should be improved by giving them better facilities.
On direct subsidy to farmers
Since the whole system of food management operates within the ambit of providing food security at a national as
well as at household level, it must be realized that farmers need due incentives to raise productivity and overall
food production in the country. Most of the OECD countries as well as large emerging economies do support their
farmers. India also gives large subsidy on fertilizers (more than Rs 72,000 crores in budget of FY 2015 plus
pending bills of about Rs 30,000-35,000 crores). Urea prices are administered at a very low level compared to
prices of DAP and MOP, creating highly imbalanced use of N, P and K. HLC recommends that farmers be given
direct cash subsidy (of about Rs 7000/ha) and fertilizer sector can then be deregulated. This would help plug
diversion of urea to non-agricultural uses as well as to neighbouring countries, and help raise the efficiency of
fertilizer use. It may be noted that this type of direct cash subsidy to farmers will go a long way to help those who
take loans from money lenders at exorbitant interest rates to buy fertilizers or other inputs, thus relieving some
distress in the agrarian sector.
On end to end computerization
HLC recommends total end to end computerization of the entire food management system, starting from
procurement from farmers, to stocking, movement and finally distribution through TPDS. It can be done on real
time basis, and some states have done a commendable job on computerizing the procurement operations. But its
dovetailing with movement and distribution in TPDS has been a weak link, and that is where much of the
diversions take place.
On the new face of FCI
The new face of FCI will be akin to an agency for innovations in Food Management System with a primary focus to
create competition in every segment of foograin supply chain, from procurement to stocking to movement and
finally distribution in TPDS, so that overall costs of the system are substantially reduced, leakages plugged, and it
serves larger number of farmers and consumers. In this endeavour it will make itself much leaner and nimble
(with scaled down/abolished zonal offices), focus on eastern states for procurement, upgrade the entire grain
supply chain towards bulk handling and end to end computerization by bringing in investments, and technical
and managerial expertise from the private sector. It will be more business oriented with a pro-active liquidation
policy to liquidate stocks in OMSS/export markets, whenever actual buffer stocks exceed the norms. This would
be challenging, but HLC hopes that FCI can rise to this challenge and once again play its commendable role as it
did during late 1960s and early 1970s.

January 2015

Page 145

PMs address at Economic Times Global Business


Summit
The government must nurture an eco-system:

Where the economy is primed for growth; and growth promotes all-round development;
Where development is employment-generating; and employment is enabled by skills;
Where skills are synced with production; and production is benchmarked to quality;
Where quality meets global standards; and meeting global standards drives prosperity. Most importantly, this
prosperity is for the welfare of all.

First, we are committed to achieving the fiscal deficit target announced in the budget. We have worked
systematically in this direction. Many of you practise Kaizen in your companies. Reducing wastage means cutting
excess and preventing misuse. This requires self-discipline.
That is why we have the Expenditure Management Commission to suggest cuts in wasteful expenditure. This way,
we will make the Rupee more productive, and deliver maximum bang for the buck.
Second, the petroleum sector has seen major reforms. Diesel prices have been deregulated. This has opened up
space for private players to enter into petroleum retail. Gas prices have been linked to international prices. This
will bring a new wave of investment. It will increase supplies. It will resolve problems in the key power sector.
Today, Indias cooking gas subsidy is the worlds largest Cash Transfer Programme. Over 80 million households
receive subsidy directly as cash into their bank accounts. This is one-third of all households in the country. This
will completely eliminate leakage.
Third, the consensus we arrived with States for amending the Constitution to implement GST is a major
breakthrough. GST has been pending for over a decade. This alone has the potential to make India competitive
and attractive for investment.
In a short span of 4 months, over 100 million new bank accounts have been opened under the Pradhan Mantri Jan
Dhan Yojana. For a country of our size, this was an immense challenge. But with will, determination and the full
support of every banker, we are today a nearly 100% banked country. Soon, all accounts will be linked with
Aadhaar. Banking habits will become common across the country.
This now opens immense possibilities for the future. Peoples savings will rise. They will invest in new financial
instruments. 1.2 billion people can hope for pensions and insurance. As the nation progresses, these bank
accounts will drive demand and growth.
Coal blocks are now allocated transparently through auctions. Mining laws have been changed to facilitate
efficient mining. Similar reforms are on the way in the Power sector. We have revived long pending projects in
Nepal and Bhutan, with the cooperation of their governments. Steps are being taken to deliver 24 x 7 Power for
All, using every possible source, including renewable energy.
FDI caps have been raised in Insurance and Real estate. FDI and private investment are being promoted in
Defence and Railways. The Land Acquisition Act has been amended to smoothen the process and speed up
matters. This will give a thrust to infrastructure and manufacturing, while protecting the compensation to
farmers. Greater investment is planned in railways and roads. New approaches and instruments are being put in
place to unlock their potential.

January 2015

Page 146

Transparency and efficiency in governance, and institutional reforms are essential elements for rapid growth.
These, along with a positive regulatory framework, tax stability, and ease of doing business, are being pushed
ahead at top speed.
For instance, I recently assured Public Sector Banks they will have total autonomy in taking business decisions,
without any interference from Government on loans and their operations. Banks Meeting
Surprise , PMO Phone
Confidence level , Transparency
I intend to launch a massive National Program for PDS Computerisation. The entire PDS supply chain, from the
FCI godown to the ration shop and consumer will be computerised. Technology will drive welfare and efficient
food delivery.
A major institutional reform is the move away from merely planning, to transforming India. The setting up of the
National Institution for Transforming India, NITI Aayog, is a step in this direction. This will take the country
forward on the path of cooperative federalism, and when I say co-operative federalism with a competitive zeal.
Country requires co-operative competitive federalism. There must be competition between states; there must be
competition between states and centre. The NITI Aayog is our Mantra for creating trust and partnership between
the Centre and States.
The new AIIMS we are setting up will improve public health in the same way as our promise of Health Assurance.
To me, Health Assurance is not a scheme. It is about ensuring that every Rupee spent on health is well spent; that
every citizen has access to proper healthcare.
Similarly, when we do Swachh Bharat, it has multiple impacts. It is not just a fad or a slogan. It changes peoples
mindsets. It changes our lifestyle. Swachhata becomes a habit. Waste management generates economic activity. It
can create lakhs of Swachhata entrepreneurs. The nation gets identified with cleanliness. And of course, it has a
huge impact on health. After all, diarrhoea and other diseases cannot be defeated without Swachhata!
Take the case of Tourism. It is an untapped economic activity. But tapping it requires a Swachh Bharat. It needs
improvement in infrastructure and telecom connectivity. It requires better education and skill development.
Therefore, a simple goal can generate reforms in multiple sectors.
People must understand the Clean Ganga program, as an economic activity also. The Gangetic plains account for
40% of our population. They have over one hundred towns, and thousands of villages. Improving Ganga will
develop new infrastructure. It will promote tourism. It will create a modern economy helping millions of people.
In addition, it preserves the environment!
Railways is another example. There are thousands of railway stations in the country where not more than 1 or 2
trains stop in a day. These facilities, created at a cost, remain unused for most of the day. These stations can
become growth points for the nearby villages. They can be used for skill development.
, , Optical fiber network Electricity ,
, , skill development center ,
, Optical fiber network Infrastructure multiple Utility
?

January 2015

Page 147

In agriculture too, our main goal is to raise productivity. This will require using technology, increasing soil
fertility, producing more crop per drop.....more crop per drop ,
agriculture sector and bringing the latest from lab to land.
agriculture sector Research , Lab , Lab to land process
, Farmer will not be Benefitted. Cost of cultivation will go down as efficiency rises. This will make agriculture
viable.
I have often called for Minimum Government Maximum Governance. This is not a slogan. This is an important
principle to transform India. -
Government systems suffer from two weaknesses. They are complex. And they are slow.
We need to change this. Our systems need to be made sharp, effective, fast and flexible. This requires
simplification of processes and having trust in citizens. This needs a Policy Driven State. What is Maximum
Governance, Minimum Government? It means government has no business to be in business. There are many
parts of the economy where the private sector will do better and deliver better. In 20 years of liberalisation, we
have not changed a command and control mindset. We think it is okay for government to meddle in the working
of firms. This must change. But this is not a call for anarchy.
Why do we need the State? There are 5 main components:
1.
2.
3.
4.
5.

The first is public goods such as defence, police, and judiciary etc.
The second is externalities which hurt others, such as pollution. For this, we need a regulatory system.
The third is market power; where monopolies need controls.
The fourth is information gaps; where you need someone to ensure that medicines are genuine and so on.
Last, we need a well designed welfare and subsidy mechanism to ensure that the bottom of society is protected
from deprivation. This specially includes education and healthcare.

In the five areas where we need government, we require competent, efficient and non-corrupt arms of
government. We in government, must constantly ask the question: How much money am I spending, and what
outcomes am I getting in return? For this, government agencies have to be improved to become competent. This
requires rewriting some laws. Laws are the DNA of government. They must evolve with time.
Digital India will reform government systems, eliminate waste, increase access and empower citizens. It will drive
the next wave of growth, which will be knowledge-driven. Broadband in every village, with a wide range of online
services, will transform India in a manner we cannot foresee. Skill India will harness the demographic dividend
which everyone talks of.
Improvement in governance is a continuous process. We are making changes wherever acts, rules and procedures
are not in tune with needs. We are cutting down on multiple clearances that choke investment. Our complex tax
system is crying for reform, which we have initiated. I believe in speed. I will push through change at a fast pace.
You will appreciate this in times to come.
I believe that subsidies are needed for them. I repeat subsidies are needed. What we need is a well-targeted system
of subsidy delivery. We need to cut subsidy leakages, not subsidies themselves. Wastage, as I said earlier, must be
removed in subsidies. The target group should be clearly identified and the subsidies should be well delivered. The
ultimate objective of subsidies should be to empower the poor, to break the cycle of poverty, and become footsoldiers in our war on poverty.
, , soldier

January 2015

Page 148

At this point, I would also say that development has to result in jobs.
Reforms, economic growth, progress all are empty words if they do not translate into jobs. What we need is
not just more production, but mass production and production by masses.
Development has many dimensions. While on one hand we need higher incomes, we also need a society which is
cohesive, which balances the stress and strain of a modern economy. History is witness to the rise and fall of
nations. Even now, many countries have become rich in an economic sense, but are poor in a social sense. Their
family systems, value systems, social networks and other elements which hold a society together have broken.
We should not go down that path.We need a society and economy which complement each other. That is the only
way for a nation to go forward. Today, everyone is looking towards Asia for inspiration and growth. And within
Asia, India is important. Not just for its size, but for its democracy, and its values. Indias core philosophy is
(Sarva Mangala Maangalyam) and (Sarve Bhavantu Sukhinah). This is a call for
global welfare, global cooperation and balanced living.
India can be a role model of growth and cohesiveness for the rest of the world. For this, we need a workforce and
economy which meet global needs and expectations. We need to quickly improve social indicators. India should
no longer be bracketed with the least developed. We can do this.
Swami Vivekananda had said Arise, awake, do not stop until the goal has been attained. This should inspire us
all to achieve the vision of a New Age India.

Novel Superabsorbent Hydrogels Technology


National Research Development Corporation (NRDC) an enterprise under the Department of Scientific &
Industrial Research, Ministry of Science & Technology, Govt. of India and M/s Reliance Industries Limited,
Mumbai executed an agreement for commercialization of A Novel Superabsorbent Hydrogels technology. This
involves a novel hydrophilic super absorbent polymer indigenously developed by the Indian Agricultural Research
Institute, New Delhi to meet the requirements of water productivity in Agriculture. The scientists had successfully
demonstrated the potential of resolving the problem of poor water use efficiency in agricultural crops. Besides,
improved nutrient use efficiency, an array of other benefits have been achieved by using this product.
Hydrogel absorbs a minimum of 350 times its weight of pure water at 500C. It exhibits absorbency at high
temperatures suitable for semi-arid and arid regions. Besides, low rate of application it also improves physical
properties of soil such as porosity, aggregate stability and hydraulic conductivity.
Key Characteristics:

Less affected by the presence of salts in its immediate environment


Improves physical properties of soils and the soil less media
Improves seed germination and the rate of seedling emergence
Improves root growth and density
Helps plants withstand prolonged moisture stress
Reduces nursery establishment period
Reduces irrigation and fertilization requirements of crops with improved input use efficiency

January 2015

Page 149

No undesirable effect on the crops raised in the fields treated with hydrogel has ever been observed or reported by
the experimenters or the end users, the farmers.

Achievements of the Department of Science and


Technology

Cutting-edge Technology: Make in India. India is a partner in the Thirty Metre Telescope (TMT) project at
Mauna Kea, Hawaii, USA at a total cost of Rs.1,299.8 Crore from 2014-23. 70% of Indias contribution will be
in kind, in the making of quality mirrors and engineering in India. Partners: USA, Japan, Canada, China and
India.
High performance computing resource of 800 TFLOPS has been commissioned for weather and climate
modeling. Most powerful machine in the SE Asia.
Supercomputing for the future: India has mounted an ambitious National Supercomputing Mission (NSM):
Building Capacity and Capability with the aim of building Exascale computing with a total budget outlay of
Rs. 4,500 Crore over 7 years (jointly with Department of Information Technology).
Understanding Climate Change and Saving the Himalayan Ecosystem: National Mission for Sustaining the
Himalayan Ecosystem. National Mission on Strategic Knowledge for Climate Change.
Tsunami Early Warning System at ESSO-INCOIS designated as Regional Tsunami Service Provider (RTSP)
for providing advisories to all Indian Ocean Rim countries. India only country capable of providing advisories
for both tsunamigenic zones: Makran coast and Andaman-Sumatra sub-duction zone.
Cyclone Prediction. Remarkable improvements: Recent events such as Thane, Phailin, and Helen and
Hudhud.
Modeling Monsoon: A dynamic model employed to predict quantitative precipitation associated with the
southwest monsoon.
Helping Recovery of Naval Science and Technological Laboratory (NSTL) heavy weight torpedo
VARUNASTRA. The support and participation by Vessel Management Cell of MoES ESSO-NIOT and crew of
Sagar-Nidhi vital.
Make in India in High-end S&T: Deployed first Sub-surface Ocean Moored Observatory in the Arctic. ESSONCAOR and the ESSO-NIOT successfully deployed IndARC, the countrys first multi-sensor moored
observatory in the Kongsfjorden fjord of the Arctic, roughly half way between Norway and the North Pole.
This is a testimony to the capabilities of India in designing, developing and installing underwater
observatories.
Investing for our future talent: New thrust in Human Resource Development. Indian Scientists teach and
train in Scale. International Scientists to teach in India. Opportunities for attracting Overseas Indian
Scientists to return to India.
Enhanced Innovation Ecosystem: Biotechnology Industry Research Assistance Council now supports nearly
300 companies, 100 young entrepreneurs. Biotechnology Translational research and industry academia
partnership are being promoted through 3 Biotech clusters, 8 Biotech Parks and 13 Bioincubators.
Rotavirus vaccine indigenously developed. The developed Rotavirus Vaccine at $1 per dose has been cleared
for market license.
Decoding the Wheat Genome: 15 countries joined hands to complete this huge task of decoding 17,000 million
bases. Indian Scientists participated in Decoding Chromosome 2A.
The Council of Scientific & Industrial Research (CSIR) provides significant technological interventions in
many areas of economic and social importance which include environment, health, drinking water, food,
housing, energy, farm and non-farm sectors.

January 2015

Page 150

CSIR has 90% of US patents granted to any Indian publicly funded R&D organization. CSIR licenses 13.86%
of its patents - above global average.
National Capacity Building and in some areas, global leadership. Example: CSIR technology provides
gasoline with less than 0.3% benzene. A 0.60 MMTPA plant is being constructed at Reliance Refinery in
Jamnagar. First in world.
Novel Broad Spectrum Confocal Microscope: Under CSIR-CGCRI and NMITLI programme a Broad Spectrum
Confocal Microscope, world class Made in IndiaHigh-end Product based on Supercontinuum Light Source.
Paved the way for Indias presence in global photonics research.
Strategic Sector: DHVANI, a state-of-the-art marksmanship training system and Drishti Systems, airport
visibility measuring tools.
KrishiShakti, an indigenous diesel engine tractor.
Just Announced: Indian Neutrino Observatory. A major high-tech Make in India initiative and a new-thrust in
High-Energy Experimental Physics. Collaboration with Department of Atomic Energy

January 2015

Page 151

Small banks and Payment Banks


Niche banks Small Finance Banks and Payments Banks are finally coming with the Reserve Bank of India
(RBI) releasing in late November detailed rules for setting up these banks.
The common objective of these niche or differentiated banks remains the same furtherance of financial
inclusion, which has become a key objective of public policy. Conceptually, Small Banks will provide a whole range
of banking products deposits and loans but will initially be confined to relatively small geographical areas.
Importantly, they will focus on smaller businesses and accept relatively small deposits.
Payments Banks will offer a limited range of products and services such as acceptance of demand deposits and
remittances of funds, but will have a wide network of access points, especially in rural areas. They will supplement
their own network with business correspondents and may even depend on the network provided by others.
Technology will be extensively used to add value.
A Small Bank, as is visualised now, has an uncanny resemblance to the Local Area Banks (LABs), which came on
the scene in 1996. Despite the enthusiasm shown by the government, LABs were not a success. By 2003, the RBI
stopped issuing new licenses for this category. It is not clear how the RBI and the government are planning this
idea now. Perhaps, the enormous step up in technology in the financial sector, in recent years, is seen to be a
decisive factor enhancing their viability. Certainly for Payment Banks, technology is going to be a great enabler.
On its part, the RBI has sought to extend the appeal of these banks to wider sections. The category of Payment
Banks, it is expected, will interest telephone companies (that run electronic wallets), supermarket chains and nonbanking finance companies. A tie up with an established bank will also be possible.
There are restrictions on the businesses these banks can do. Individual customers can keep no more than Rs.1
lakh as deposits. These banks are allowed to do remittance businesses and offer payment facilities, but many
transactions that are routine for a full-fledged bank are out of bounds for now.

January 2015

Page 152

Coal workers Strike


Trade unions opposed to enabling clause in the coal block allocation ordinance that may allow extraction of fuel
and its sale by private companies went on a 5 day strike. They are demanding the withdrawal of Coal Mines
(Special Provisions) Bill and are protesting against the enabling clause in the coal block allocation ordinance that
may allow coal extraction and its sale by private companies. Among their demands were deleting the clause
allowing private commercial coal mining in the Coal Mines (Special Provisions) Bill, 2014, allocating coal blocks to
CIL, bringing production planning and its execution under the scrutiny of the industrial relations system, ending
contractual jobs in posts of a perennial nature and regularisation of all those who are presently on contracts,
lifting the ban on recruitment and ironing out the problems in the Special Female Voluntary Retirement Scheme
which the unions had earlier succeeded in reinstating.
The strike was called off after the union minister Piyush Goel gave assurance to the striking workers that Coal
India would not be denationalized and interests of the workers would be taken into consideration before taking
any decisions on the issue.
Background: The Coal Mines (Special Provisions) Ordinance was promulgated by the government on October
21, 2014. On August 25, 2014, the Supreme Court held as illegal all coal block allocations made by the Central
Government from 1993. Following this, through its order on September 24, 2014, it cancelled the allocation of all
but four coal blocks. This included the 42 mines that had begun or were ready to begin production. The ordinance
provides the procedure for auction of these coal blocks. While the ordinance was needed for transferring assets
and liabilities of the prior allottees, what it will also do is introduce competition into the coal mining sector by
doing away with the requirement of end-use projects.
The Ordinance classifies mines into three schedules. It also changed the Coal Mines Nationalisation and Mines
and
Minerals
(Development
and
Regulation)
Acts
to
permit
commercial
mining.

Now, coal can be mined for commercial


use and sold for profit. Once 130 of the
mines listed in the first schedule are
allotted to companies not into power,
cement, steel or any other notified uses,
coal will be freely available in the market.
India doesn't have companies that simply
mine and sell. But with this move, there
is a likelihood of such companies coming
up. As there is no restriction on foreign
investment into the coal sector,
companies such as BHP Billiton and Rio
Tinto can easily bid through their Indian
subsidiaries.
The Supreme Court's September 24 order
had de-allocated captive mines given to
private companies through two decades. "The (government) approach has been ad-hoc and casual," said the order.
The reason for such a scathing observation was there weren't any set criteria for allocation of mines. Since mining
deals with natural resources held by the government in public trust, discretion in allocation to private companies

January 2015

Page 153

is viewed with suspicion. State government companies that were given mining rights under the government's
dispensation route also faced de-allocation, as they gave mines to private companies for commercial mining, not
allowed under the law earlier.

Nationalisation of Coal Mining: How it happened


Coking coal mines were nationalised in 1972, followed by nationalisation of non-coking coal mine in 1973. The
Coal Mines Nationalisation (CMN) Act, enacted in 1976, terminated leases of private holders except those of iron
and steel producers for their captive use
Captive mining
In July 1992, a screening committee under the chairmanship of the coal secretary was set up to consider
applications for captive mining. A total of 143 coal blocks of Coal India and Singareni Collieries, for which
production plans werent in place, were offered. The Act was amended in June 1993 to include power as end use.
In March 1996, cement and in July 2007, coal gasification and liquefaction too were notified as specified end uses.
Captive mining was opened up to 100 per cent FDI under the automatic route in Feb 2006.
Past attempts to permit commercial mining
The Cabinet approved changes to the CMN Act in Feb 1997 but the Bill remained pending, after being introduced
in the Rajya Sabha in April 2000
Competitive bidding
The Mines and Minerals (Development and Regulation) Act was amended in Sept 2010 to make competitive
bidding applicable to all minerals. In Feb 2012, the UPA govt notified auctioning of coal mines
De-allocation of captive mines
On Aug 25, 2014, the Supreme Court held all coal block allocations as illegal. Leases of 204 mines cancelled on
Sept 24.
Some facts: Coal output in the country has grown at an average of 6 per cent over the last five years even as
power generation capacity three-fifths of which is coal-based has raced ahead at a much faster pace. Coal
India has failed to meet its targets for each of the last six years, with the result that India is now the third largest
coal importer in the world despite boasting of the fourth largest reserves. Last fiscal the country spent around $17
billion of precious foreign exchange to import 168 million tonnes of coal to cover up for Coal Indias inability to
meet demand.
Imports are projected to rise to as much as 240 million tonnes in 2015-16. This is where private investment in
commercial mining comes in as the latter can add to incremental output and reduce imports. Coal Indias unions
need to be reassured by the government that there is space for both Coal India and the private sector as GDP
grows and along with it, power demand. If anything, the terms of work and wages will only improve with the entry
of the private sector; telecom and banks are good examples of this.

January 2015

Page 154

Index of Industrial Production


The Index of Industrial Production (IIP) gives details about growth of various sectors in an economy such as
mining, electricity and manufacturing. The all India IIP is a composite indicator that measures the short-term
changes in the volume of production of a basket of industrial products during a given period with respect to that in
a chosen base period. It is compiled and published monthly by the Central Statistical Organisation (CSO) six
weeks after the reference month ends.
The level of the Index of Industrial Production (IIP) is an abstract number, the magnitude of which represents the
status of production in the industrial sector for a given period of time as compared to a reference period of time.
The base year was at one time fixed at 1993-94 so that year was assigned an index level of 100. Now the base year
is 2004-2005.
The weightage of Manufacturing, Mining and Electricity production in overall Index IIP is 75.53 percent, 14.16
percent and 10.31 percent respectively.
An IIP growth of 2.5% for January 2015 means that industrial production has risen by 2.5% in January 2015 as
compared to January 2014. CSO also releases individual index figures for manufacturing, mining and electricity to
give a better picture of the economy is doing.

Indias trade deficit with China


Indias trade deficit with China rose to a whopping $37.8 billion last year even as bilateral trade picked up,
totalling $70.59 billion, a year-on-year increase of 7.9 per cent.
India-China trade hit all-time high of $73.9 billion in 2011, but declined to $66.57 billion in 2012 and $65.49
billion in 2013. According to figures released by Chinese customs, bilateral trade increased by 7.9 per cent, halting
the decline in the last two years.
But Indias trade deficit woes continued, as it mounted as high as $37.8 billion, making it difficult to bridge the
gap. The leadership of the two countries have fixed a trade target of $100 billion for this year.
Chinese exports to India surged to $54.2 billion, posting a 12 per cent increase while Indian exports to China
decelerated to $16.4 billion, a decline of 3.5 per cent. Indian exports totalled to $17.04 billion in 2013. While the
trade has increased between the two countries becoming a binding factor in improving relations, the everwidening deficit has become a major stumbling block, especially for India, whose exports were hit by depreciating
rupee and also by declining exports of iron ore which previously was the main stay of Indian exports.
Keeping the gap in mind, India has been pressuring China to open up more in IT, pharmaceuticals and agriproducts besides stepping up Chinese investments in India to compensate for the trade deficit.
While Chinese leadership has been promising to open up more for Indian trade, especially for pharmaceuticals, a
sum of $20 billion has been committed for investments in two industrial parks in Gujarat and Maharashtra during
the visit of Chinese President Xi Jinping to India in September last.

January 2015

Page 155

India and China are in talks to step up cooperation in plans to modernize the Indian Railways, which could further
increase Chinese investments in the country. China is also keen to market its high-speed railway technology in
India, and has committed to do a feasibility study this year for Delhi-Chennai corridor.

Urijit Patel Committee and inflation targeting


An expert committee appointed to examine the current monetary policy framework of the Reserve Bank of India
(RBI) suggested that the apex bank should adopt the new CPI (consumer price index) as the measure of the
nominal anchor for policy communication. The expert committee was headed by Urjit R. Patel, Deputy Governor
of the Reserve Bank of India.
The main recommendations of committee are as follows:(a) RBI should adopt the new Consumer Price Index (CPI) as the measure of the nominal anchor for policy
framework.
(b) The nominal anchor or the target for inflation should be set at 4 per cent with a band of +/- 2 per cent around
it.
(c) The monetary policy regime must shift away from the current approach to one that is centered around the
nominal anchor (new CPI) only.
(d) Inflation from the current level of 10 per cent to be brought down to 8 per cent over a period not exceeding the
next 12 months and to 6 per cent over a period not exceeding the next 24 month period before formally adopting
the recommended target of 4 per cent inflation with a band of +/- 2 per cent.
(e) The committee asked the Central Government to ensure that the fiscal deficit as a ratio to Gross Domestic
Product is brought down to 3.0 per cent by 2016-17.
(f) That the monetary policy decision-making should be vested with a Monetary Policy Committee (MPC). It went
on to recommend that the Governor of the RBI should be the Chairman of the MPC. The term of office of the MPC
could be three years, without prospect of renewal.
(g) All fixed income financial products should be treated on a par with bank deposit for the purposes of taxation
and Tax Deduction at Source.
(h) The RBI should introduce a remunerated standing deposit facility, which would effectively empower it with
unlimited sterilisation capability. As a buffer against outflows, the RBIs strategy should be to build an adequate
level of foreign exchange reserves.
The case of price stability as the major objective of economic policy rests on the assumption that volatility in
prices creates uncertainties in decision-making. Rising prices adversely affect savings while making speculative
investments more attractive. These apart, there is a crucial social dimension, particularly in developing countries.
Inflation adversely affects those who have no hedges against it, and this includes all poorer sections of the
community. This is indeed a very strong argument in favour of the maintenance of price stability in emerging
economies.
Inflation targeting is an economic policy in which a central bank estimates or decides for a medium-term
target inflation rate and makes public this "inflation target". Then the central bank attempts to steer with shortterm instruments at its own discretion actual inflation towards this target through the use of interest rate changes
and other monetary tools.

January 2015

Page 156

Because interest rates and the inflation rate tend to move in opposite directions, the likely moves of the central
bank to raise or lower interest rates become more transparent under the policy of inflation targeting. Examples:

If inflation appears to be above the target, the bank is likely to raise interest rates. This usually has the effect
of cooling the economy and bringing down inflation.
If inflation appears to be below the target, the bank is likely to lower interest rates. This usually has the effect
of accelerating the economy and raising inflation.

Under this monetary policy of inflation targeting, the uncertainty among investors is reduced as they know what
the central bank considers the target inflation rate to be and therefore may more easily factor in likely interest rate
changes in their investment choices.
Some challenges faced with adopting inflation targeting:
Restricted ability of the central bank to respond to financial crises or unforeseen events
Potentially poor outcomes in employment, exchange rate and other macroeconomic variables beside inflation
Potential instability in the event of large supply-side shocks
Lack of support from the public

RBI cuts repo rate by 25 basis points


Encouraged by softening inflation, the RBI decided to cut the benchmark interest rate by 0.25 per cent to 7.75 per
cent with a view to boost growth. The decision to reduce repo rate comes a fortnight ahead of the scheduled date
of monetary policy announcement on February 3.
The RBI has been keeping the benchmark interest rate at elevated level at 8 per cent since January 2014.
The RBI, however, has decided to keep the cash reserve ratio (CRR), the portion of deposits which the banks are
required to have in cash with the central bank, unchanged at 4.0 per cent. Following reduction in the repo rate,
the reverse repo rate has been adjusted to 6.75 per cent and the marginal standing facility (MSF) rate and Bank
Rate to 8.75 per cent.
The RBI said that the Consumer Price Index (CPI) has been easing since July 2014 and was below the expected
trajectory and the government has reiterated its commitment to adhering to its fiscal deficit target. These
developments have provided headroom for a shift in the monetary policy stance, the RBI added.
The central bank in its fifth bi-monthly monetary policy statement of December had said that if the current
inflation momentum and changes in inflation expectations continue, and fiscal developments are encouraging, a
change in the monetary policy stance is likely early next year, including outside the policy review cycle.
In its public interactions, the RBI functionaries had committed to initiate the process of monetary easing as soon
as data indicated that medium-term inflationary targets would be met, the statement said. Elaborating on the
price situation, it said, Inflation outcomes have fallen significantly below the 8 per cent targeted by January 2015.
On current policy settings, inflation is likely to be below 6 per cent by January 2016.

January 2015

Page 157

The lower-than-expected inflation has been enabled by decline in prices of vegetables and fruits, cereals and the
large fall in international commodity prices, particularly crude oil, the statement added. The crude prices, barring
geo-political shocks, are expected to remain low over the year, it said. The Reserve bank in December had said
that once the monetary policy stance shifts, subsequent actions would be consistent with it.
Key to further easing will be data that confirm continuing dis-inflationary pressures. Also critical would be
sustained high quality fiscal consolidation as well as steps to overcome supply constraints and assure availability
of key inputs such as power, land, minerals and infrastructure, the RBI statement said.

Some basic concepts of Economics


Bank rate
Bank Rate is the rate at which central bank of the country allows finance to commercial banks. Bank Rate is a tool,
which central bank uses for short-term purposes. Any upward revision in Bank Rate by central bank is an
indication that banks should also increase deposit rates as well as Base Rate / Benchmark Prime Lending
Rate. Thus any revision in the Bank rate indicates that it is likely that interest rates on deposits are likely to either
go up or go down and it also indicates an increase or decrease in loan EMIs.
CRR
CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion of their deposits in the
form of cash. However, banks dont actually hold cash with themselves, but deposit such cash with Reserve Bank
of India. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated by the RBI and
is known as the CRR or Cash Reserve Ratio. When a banks deposits increase by Rs100, and if the cash reserve
ratio is 6%, the banks will have to hold additional Rs 6 with RBI and Bank will be able to use only Rs 94 for
investments and lending / credit purpose. Therefore, higher the ratio (i.e. CRR), the lower is the amount that
banks will be able to use for lending and investment. This power of RBI to reduce the lendable amount by
increasing the CRR, makes it an instrument in the hands of a central bank through which it can control the
amount that banks lend. Thus, it is a tool used by RBI to control liquidity in the banking system.
RBI uses CRR either to drain excess liquidity or to release funds needed for the growth of the economy from time
to time. Increase in CRR means that banks have less funds available and money is sucked out of circulation. Thus
we can say that this serves duel purposes i.e. (a) ensures that a portion of bank deposits is kept with RBI and is
totally risk-free, (b) enables RBI to control liquidity in the system, and thereby, inflation by tying the hands of the
banks in lending money.
SLR
Every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand
and Time Liabilities as liquid assets in the form of cash, gold and approved securities. The ratio of liquid assets to
demand and time liabilities is known as Statutory Liquidity Ratio (SLR). RBI is empowered to increase this ratio
up to 40%. An increase in SLR restricts the banks ability to pump more money into the economy.
Repo (Repurchase) rate
It is the rate at which the RBI lends shot-term money to the banks against securities. When the repo rate increases
borrowing from RBI becomes more expensive. Therefore, we can say that in case, RBI wants to make it more

January 2015

Page 158

expensive for the banks to borrow money, it increases the repo rate. Similarly, if it wants to make it cheaper for
banks to borrow money, it reduces the repo rate.
Reverse Repo rate
It is the rate at which banks park their short-term excess liquidity with the RBI. The banks use this tool when they
feel that they are stuck with excess funds and are not able to invest anywhere for reasonable returns. An increase
in the reverse repo rate means that the RBI is ready to borrow money from the banks at a higher rate. As a result,
banks would prefer to keep more and more surplus funds with RBI. Thus, we can say that Repo Rate signifies the
rate at which liquidity is injected in the banking system by RBI, whereas Reverse repo rate signifies the rate at
which the central bank absorbs liquidity from the banks.
Liquidity adjustment facility
Liquidity adjustment facility (LAF) is a monetary policy tool which allows banks to borrow money through
repurchase agreements. LAF is used to aid banks in adjusting the day to day mismatches in liquidity. LAF consists
of repo and reverse repo operations. Repo or repurchase option is a collaterised lending i.e. banks borrow money
from Reserve bank of India to meet short term needs by selling securities to RBI with an agreement to repurchase
the same at predetermined rate and date. The rate charged by RBI for this transaction is called the repo rate. Repo
operations therefore inject liquidity into the system.
Reverse repo operation is when RBI borrows money from banks by lending securities. The interest rate paid by
RBI is in this case is called the reverse repo rate. Reverse repo operation therefore absorbs the liquidity in the
system. The collateral used for repo and reverse repo operations consists of Government of India securities.
Liquidity adjustment facility has emerged as the principal operating instrument for modulating short term
liquidity in the economy. Repo rate has become the key policy rate which signals the monetary policy stance of the
economy.
Marginal Standing Facility (MSF)
It is a new scheme announced by the Reserve Bank of India (RBI) in its Monetary Policy (2011-12) and refers to
the penal rate at which banks can borrow money from the central bank over and above what is available to them
through the LAF window. MSF, being a penal rate, is always fixed above the repo rate. The MSF would be the last
resort for banks once they exhaust all borrowing options including the liquidity adjustment facility by pledging
through government securities, which has lower rate of interest in comparison with the MSF.
Banks can borrow funds by pledging government securities within the limits of the statutory liquidity ratio (i.e.
Banks can pledge securities from their SLR quota). The scheme has been introduced by RBI with the main aim of
reducing volatility in the overnight lending rates in the inter-bank market and to enable smooth monetary
transmission in the financial system.

January 2015

Page 159

Goods and Services Tax


Goods and Services Tax -- GST -- is a comprehensive tax levied on manufacture, sale and consumption of goods
and services at a national level. Through a tax credit mechanism, this tax is collected on value-added to goods and
services at each stage of sale or purchase in the supply chain.
The system allows the set-off of GST paid on the procurement of goods and services against the GST which is
payable on the supply of goods or services. However, the end consumer bears this tax as he is the last person in
the supply chain. Experts say that GST is likely to improve tax collections and boost India's economic
development by breaking tax barriers between States and integrating India through a uniform tax rate.
What are the benefits of GST?
Under GST, the taxation burden will be divided equitably between manufacturing and services, through a lower
tax rate by increasing the tax base and minimizing exemptions. Currently, a manufacturer needs to pay tax when a
finished product moves out from a factory, and it is again taxed at the retail outlet when sold. It is estimated that
India will gain $15 billion a year by implementing the Goods and Services Tax as it would promote exports, raise
employment and boost growth.
In the GST system, both Central and State taxes will be collected at the point of sale. Both components (the
Central and State GST) will be charged on the manufacturing cost. This will benefit individuals as prices are likely
to come down. Lower prices will lead to more consumption, thereby helping companies.
In a positive development towards Indias progress into a nationwide unified market and removing trade barriers
in the form of cascading effects of taxation, the Central Government tabled the 122nd Constitution Amendment
Bill, 2014 on the introduction of Goods and Services Tax (GST) before the lower house of Parliament on
December 19, 2014. This Bill replaces an earlier bill introduced in 2011 by the erstwhile government which had
since lapsed.
The Bill proposes to replace the current Indian tax regime which is multi-tiered. Currently, the Centre imposes
excise duty on manufacture of goods, and service tax on provision of services (other than customs duty on
imports). The States separately impose Value Added Tax (VAT) on the supply of goods and a portfolio of specific
taxes such as entertainment tax, excise duties on alcohol for human consumption and medicinal and toilet
preparations (MTP), entry tax and octroi. For mixed supply of services and goods (eg. construction, restaurants),
both service tax and VAT apply on the respective components. This results in a multiplicity of taxes with limited
cross credits, conceptual difficulties, differential tax regimes between States and undue litigation.
Key Features of the Bill
The Bill proposes that both the Centre and States would be entitled to concurrently impose GST on the supply
of goods and services within a state. Effectively, every supply of goods and services would be subjected to a
Central GST (CGST) and State GST (SGST) on such intra-state supply by the jurisdictional State.
When the supply of goods and services is between States as an inter-state transaction, a levy called
Integrated Goods and Services Tax (IGST) would be levied by the Centre.
Imports are intended to be treated at par with inter-state transactions and therefore should attract IGST.
The Bill empowers the formulation of principles to determine when the supply of goods and services would
constitute an inter-State transaction for IGST to apply; such principles would be incorporated in the GST
legislation that would be introduced after this Bill becomes law.
Though IGST on inter-state supply of goods and services would be imposed by the Central Government, IGST
Revenues would be shared between the Centre and States as per the recommendations of the GST Council. It

January 2015

Page 160

is expected that the methodology of this revenue share would be coded into the GST legislation that would be
introduced by the Centre after completion of this constitutional amendment.
As indicated above, revenue sharing between the Centre and States has been a historic stumbling block on
progress on GST over the past few years. Effectively, this resulted in concern by the States on relinquishing
the power to tax revenue leading items such as petroleum, tobacco, medicinal and toilet preparations (MTP)
and alcohol. This Bill indicates a level of agreement on these elements, as it proposes to bring all items except
alcohol within the ambit of GST. However, the Bill also provides that for certain items, this transition to GST
would be immediate, while on a phased for other items.
Entry tax is imposed by various States across India when goods enter for consumption or sale within its
jurisdiction. This levy has been subjected to various legal challenges in almost all States and is currently
pending resolution at various appellate fora. This also posed specific logistical difficulties for the supply chain.
The Bill seeks to delete the imposition of entry tax across India.
Entertainment tax, which is currently imposed by States on a variety of activities (television, movie theatres
etc.), would be now subjected to GST. This is a positive development for the entire entertainment sector which
would now come within the folds of GST as it was hitherto subject to different taxes at the stages of content
development, licensing and dissemination. However, taxes on entertainment at the Panchayat, Municipality
or District level would continue.
GST would be levied on the sale of newspapers and advertisements therein. This would give the governments
the access to substantial incremental revenues since this industry has historically been tax free in its entirety.
Stamp duties, typically imposed on legal agreements by the State, would continue to be levied by the States.
The Bill has provided for a definition of services, covering anything other than goods, which is modelled on
the regulations prevalent under the VAT regimes in the European Union.
The Bill provides that the administration of GST would be the responsibility of the GST Council which would
then become the apex indirect tax policy making body of the country. This GST Council would be formed by
the Central and State level ministers in charge of the finance portfolio. The Bill also lays down various
elements of how the GST Council would operate and its powers, such as determining the rate and exemptions
of tax, threshold limits, framing model laws and principles of levy and apportionment of IGST, and voting
powers.
The GST Council has been empowered to provide floor rates, with bands for rates of GST for different items.
This grants States a degree of flexibility in determining the rate of SGST within such bands so as to pursue its
policies vis--vis relevant products.
There is a provision for imposing a temporary additional tax at 1 percent on the inter-state supply of goods
and services which would directly accrue to the originating State (and therefore would not be shared). This
provision seems to be geared to assuage the concerns of those States, which have high levels of outward trade,
on revenue shortfalls immediately upon removal of CST.
The Bill provides that compensation to States on revenue loss on account of introduction of GST would be
based on the recommendations of the GST Council. Therefore, the GST Council, and not the Centre, would be
decision making authority on the computation of compensation to States for any revenue loss, and therefore
seeks the general concerns of States towards revenue shortfalls by allowing for determination of
compensation by a body with democratic representation by all States.
With the objective of augmenting this democratic element and further widening the powers of the GST
Council, this Bill widens the powers of the GST Council, to allow it to address unique situations, on:
(a) Resolution of disputes arising out of its recommendations
(b) Imposition of additional taxes in times of calamities and disasters
(c) Introduction of special provisions with respect to all Himalayan states in India

January 2015

Page 161

Government wont appeal pro-Vodafone tax order


from High Court
Signalling a stable and investment-friendly regime to investors, the government has decided not to appeal against
the Bombay High Court order granting tax relief to Vodafone.
The government will not appeal in Supreme Court the October 10 order of the Bombay High Court in the
Vodafone case We want to convey a clear and positive message to investors globally that we will be fair,
transparent and within the four corners of law, Telecom Minister Ravi Shankar Prasad told reporters after a
Cabinet meeting.
According to an official statement, the Cabinet also decided to accept all other orders of courts, ITAT (Income
Tax Appellate Tribunal), DRP (Dispute Resolution Panel) in cases of other taxpayers where similar transfer
pricing adjustments have been made and the courts, ITAT, DRP have decided or decide in favour of the taxpayer.
The governments decision, taken with a view to avoid fruitless litigation, will provide a breather to several
multinationals which are engaged in similar tax disputes with the Income Tax department. Besides Vodafone,
these companies include Shell, IBM and Nokia. The decision was taken following the opinion of the Attorney
General, CBDT chairperson and the Chief Commissioner (international taxation).
It comes at a time when the Narendra Modi government is wooing foreign investors for the success of its flagship
programme Make in India. In the last few weeks, both the Prime Minister and Finance Minister Arun Jaitley
have expressed the governments keenness in ensuring a stable tax regime and doing away with complexities.
The official statement said the decision would bring greater clarity and predictability for taxpayers as well as tax
authorities and put an end to the uncertainty prevailing in the minds of foreign investors and taxpayers in respect
of possible transfer pricing adjustments in India on transactions related to issuance of shares.
In 2009-10, Vodafone India had issued shares at a price far below what the revenue department saw as a fair
market price based on the value of its assets here. The difference between the transaction price and the so-called
fair arms-length price was treated as a deemed loan from Vodafone India to the holding company. This amount,
along with interest, added up to a transfer pricing adjustment of nearly Rs 1,400 crore, which was taxable.
This interpretation was, however, rejected by the high court, which held that only transactions resulting in actual
generation of income can be taxed. Vodafone had only made a primary issuance of shares. Only capital gains from
a subsequent sale of shares could have been brought to tax. The courts ruling that only real income can be
taxed is applicable to similar tax disputes involving alleged issuance of under-priced shares by subsidiaries of
other multinationals like Shell, HSBC and IBM.
Prasad said the Cabinet was of the view that this is a transaction on the capital account and there is no income to
be chargeable to tax. So applying any pricing formula is irrelevant. Tax experts welcomed the move and said the
decision
showed
the
governments
commitment
to
a
stable
tax
regime.

January 2015

Page 162

World Economic Forum


The World Economic Forum (WEF) is a Swiss nonprofit foundation, based in Cologny, Geneva. It describes
itself as an independent international organization committed to improving the state of the world by engaging
business, political, academic, and other leaders of society to shape global, regional, and industry agendas. The
forum is best known for its annual winter meeting in Davos, a mountain resort in Graubnden, in the
eastern Alps region of Switzerland. The meeting brings together some 2,500 top business leaders, international
political leaders, selected intellectuals, and journalists to discuss the most pressing issues facing the world,
including health and the environment. Often this location alone is used to identify meetings, participation, and
participants with such phrases as, "a Davos panel" and "a Davos Man".
The organization also convenes some six to eight regional meetings each year in locations such as Latin America
and East Asia, as well as undertaking two further annual meetings in China and the United Arab Emirates. Beside
meetings, the foundation produces a series of research reports and engages its members in sector specific
initiatives. The 2012 meeting was held on 2529 January 2012, with the theme "The Great Transformation:
Shaping New Models". The 2013 meeting was held from 23 January to 27 January, with the theme of "Resilient
Dynamism," following founder Klaus Schwab's declaration that "the need for global cooperation has never been
greater". The 2014 meeting was held from 22 January to 25 January, with the theme "The Reshaping of the
World: Consequences for Society, Politics and Business".
History
The World Economic Forum was founded in January 1971 when a group of European business leaders met under
the patronage of the European Commission and European industrial associations. German-born Klaus Schwab,
then Professor of Business Policy at the University of Geneva, chaired the gathering, which took place in Davos,
Switzerland. The organization was subsequently incorporated as a not-for-profit Foundation.
Professor Schwabs inspiration for creating the Foundation was his book Moderne Unternehmensfhrung im
Maschinenbau in which the stakeholder principle was first defined. This concept states that the management of
an enterprise is not only accountable to its shareholders but must also serve the interests of all stakeholders,
including employees, customers, suppliers and, more broadly, government, civil society and any others who may
be affected or concerned by its operations.
The Forum was called the European Management Forum until 1987, when it was renamed the World Economic
Forum to reflect its expanding scope and transformation from a European to truly global organization. From the
beginning, the Forum had considerable impact in improving political, economic and social awareness, acting as a
catalyst for major bridge-building efforts. The Forum has provided a critical platform for furthering peace and
reconciliation in many parts of the world, promoting understanding between East and West before and after the
fall of the Berlin Wall, introducing emerging economies such as China and India to the international community,
and bringing to the fore the latest trends and developments in many fields.
Political leaders soon began to use the annual meeting as a neutral platform. The Davos Declaration was signed in
1988 by Greece and Turkey, helping them turn back from the brink of war. In 1992, South African President F. W.
de Klerk met Nelson Mandela and Chief Mangosuthu Buthelezi at the annual meeting, their first joint appearance
outside South Africa. At the 1994 annual meeting, Israeli Foreign Minister Shimon Peres and PLO
Chairman Yasser Arafat reached a draft agreement on Gaza and Jericho.
The Forum has also been the catalyst for a number of significant global initiatives, such as the Global Compact
(developed jointly with the UN); the GAVI Alliance (initially the Global Alliance for Vaccines and Immunization);

January 2015

Page 163

the Global Fund to Fight AIDS, Tuberculosis and Malaria; the expansion of the OECD; and the development of the
G20 concept.
Over the last 20 years, the Forum has also evolved the stakeholder principle beyond the corporate level to a truly
global sphere, stipulating that political, business and civil society leaders must work together to address the
challenges of a globally interconnected world. This enhanced dimension has led to the notion of corporate global
citizenship, as outlined by Professor Schwab in a Foreign Affairs article published in 2008.
What has remained unchanged since its founding is the Forums dedication to collaboration among stakeholders,
its steadfast adherence to the high-level participation of leaders sharing the Forums commitment to improving
the state of the world, and the Forums trust in the power of dialogue and exchange based on mutual respect and
civility to bridge divides and shape effective solutions to global challenges. The World Economic Forum has
evolved from a modest yet ground-breaking attempt to convene European corporate stakeholders to discuss
business strategies into an organization that today is widely regarded as the worlds foremost multistakeholder
platform for public-private partnership.
Organization
Headquartered in Cologny, in 2006 the foundation opened regional offices in Beijing and New York City. It strives
to be impartial and is not tied to any political, partisan, or national interests. The foundation is "committed to
improving the State of the World". During the five-day annual meeting in Davos, more than 2,500 participants
from slightly fewer than 100 countries gather in Davos. Approximately 1,500 are business leaders, drawn from its
members, 1,000 of the world's top companies.
Membership
The foundation is funded by its 1,000 member companies, typically global enterprises with more than five billion
dollars in turnover (varying by industry and region). These enterprises rank among the top companies within their
industry and/or country and play a leading role in shaping the future of their industry and/or region. Membership
is stratified by the level of engagement with forum activities, with the level of membership fees increasing as
participation in meetings, projects, and initiatives rises.
Highlights of Davos 2105
Jim Yong Kim, President, The World Bank, Washington DC; Co-Chair of the World Economic Forum Annual
Meeting 2015, said: We have to increase the impact that global growth has on the poorest. Kim said improving
healthcare and the quality of education are proven both to reduce inequality and foster sustainable growth.
Li Keqiang, Premier of the Peoples Republic of China, was the first to tackle the inequality issue head on, on
Wednesday 21 January. We need to ensure a relatively high employment rate, especially sufficient employment
for young people. And we need to optimize income distribution and raise peoples welfare, he said, outlining the
new normal growth in China.
Climate change was top of the agenda, following an invitation by the French government to galvanize publicprivate support for the 2015 UN climate change conference in Paris later this year. Al Gore, Chairman and CoFounder, Generation Investment Management, and Pharrell Williams, Creative Director and Brand
Ambassador, Bionic Yarn, answered the call immediately, announcing their Live Earth series of concerts. We are
literally going to unite humanity all at once, Williams said.
Ban Ki-moon, UN Secretary-General; Christine Lagarde, Managing Director, International Monetary Fund
(IMF), and Jim Yong Kim, President, The World Bank, also supported the plea. Its a collective endeavour, its
a collective accountability and it may not be too late, Lagarde said.

January 2015

Page 164

Matteo Renzi, Prime Minister of Italy, talked about how to reignite Europes growth engine. The European
direction must stress the importance of growth and public and private investment, not only austerity, he
said. Angela Merkel, Federal Chancellor of Germany, said that so-called austerity is often pitted against socalled growth and that we need a growth-oriented, sound fiscal policy, we need investments by the state, and we
need an environment which encourages private investors to take out investments.
Franois Hollande, President of France, put terrorism on the agenda. There cannot be prosperity without
security, he said. He urged the private sector to play a role as there needs to be a global international response.
It needs to be international and it needs to be shared, also by business, particularly the largest corporations, he
said. John Kerry, US Secretary of State, said: Eliminating the terrorists that confront us today actually only
solves part of the problem. We have to do more to avoid an endless cycle of violent extremism. We have to
transform the very environment from which these forces emerge.
Technology stakeholders discussed the future of the internet. Satya Nadella, Chief Executive Officer, Microsoft,
focused on internet security and transparency. Weve got to get this balance between privacy and legitimate
public safety. The internet is one of the greatest global goods. If we destroy it, we destroy a lot of our economic
future. Sheryl Sandberg, Chief Operating Officer, Facebook, said that increasing access should be key. If we
can extend the internet to more people, we increase economic opportunities and equality, she said.
A number of key stakeholders from Libya, Syria and Ukraine gathered for informal talks. Topics included the
mitigation of the impact of the Syrian conflict on its population and the reversal of the emergency situation in
Libya. This was part of the Forums long-standing commitment to improve the state of the world, which also
includes ongoing engagement on Palestinian-Israeli relations.
Against the background of ongoing conflict, the Forum also convened an expanded meeting of business leaders
from Ukraine, the Russian Federation, Europe and the United States as part of its ongoing Geneva-Ukraine
Initiative. At the meeting, all participants reaffirmed their commitment to a common approach, despite the very
tense circumstances, to help resolve the conflict between Ukraine and Russia. This common approach, formulated
in September 2014, can be summarized in ten proposals here.
The Forum launched a new Global Challenge Initiative on Food Security and Agriculture, with support from
the Government of Canada and a broad network of stakeholders. The initiative will work to achieve sustainable
and inclusive food systems through investment, innovation and collaboration.

After Make In India, PM to launch services initiative


After the Make In India aimed at the manufacturing industry, Prime Minister Narendra Modi is all set to launch
a big push to the services sector in April. Mr. Modi will inaugurate a global exhibition on services on April 23 to
showcase Indias strength in the sector and provide platform to the industry to explore business opportunities,
Commerce and Industry Minister Nirmala Seetharaman said in New Delhi. Services must grow alongside
manufacturing as the services sector contributes over 50 per cent in the country's economic growth.
Over 40 countries are expected to participate in the three-day exhibition, the Minister told reporters. Besides IT,
big opportunities exist in other sectors such as tourism, wellness, yoga, healthcare, education, logistics, media and
entertainment, R&D, space and hospitality, she said.

January 2015

Page 165

Indias rank in the global exports of services improved from 11th in 2009 to 6th in 2013 still the scope is
tremendous as Indias share in the global services trade is only 3 per cent as compared to 4.6 per cent of China,
Commerce Secretary Rajeev Kher said. Services sector has an important role to play in the success of the Make in
India, he said. Unless we are competitive in services, we will not be competitive in merchandise.
India ran a net surplus of $73 billion in services trade during 2013-14 as exports exceeded imports. The trade
surplus in services helped provide for some part of the trade deficit in merchandise of $138 billion.

Trans-Pacific Partnership
The Trans-Pacific Partnership (TPP) is a proposed regional regulatory and investment treaty. As of end of
2014 twelve countries throughout the Asia-Pacific region have participated in negotiations on the
TPP: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States,
and Vietnam.
The proposed agreement began in 2005 as the Trans-Pacific Strategic Partnership Agreement (TPSEP or P4).
Participating countries set the goal of wrapping up negotiations in 2012, but contentious issues such as
agriculture, intellectual property, and services and investments have caused negotiations to continue into the
present, with the last round meeting in Ottawa from 312 July 2014. Implementation of the TPP is one of the
primary goals of the trade agenda of the Obama administration in the United States of America.
On 12 November 2011 the nine Trans-Pacific Partnership countries announced that the TPP intended to "enhance
trade and investment among the TPP partner countries, to promote innovation, economic growth and
development, and to support the creation and retention of jobs." Global health professionals, internet
freedom activists, environmentalists, organized labor, advocacy groups, and elected officials have criticized and
protested the negotiations, in large part because of the proceedings' secrecy, the agreement's expansive scope, and
controversial clauses in drafts leaked to the public.
The countries currently party to the agreement are some of the U.S.' biggest and fastest-growing commercial
partners. They account for 40 percent of the world's GDP and 26 percent of the world's trade.
Earlier trade agreements used to deal mostly just with goods: You can import X number of items at Y price, as
long as we know that certain environmental and labor standards are met. Modern trade agreements including
the Trans-Atlantic deal as well as the TPP encompass a broad range of regulatory and legal issues, making them
a much more central part of foreign policy and even domestic lawmaking.
The treaty has 29 chapters, dealing with everything from financial services to telecommunications to sanitary
standards for food. Some parts of it have significant ramifications for countries' own legal regimes.
Contentious issues
Intellectual property: The leaked intellectual property chapter (Wikileaks) revealed that the U.S. has been
pushing stronger copyright protections for music and film, as well as broader and longer-lasting applicability of
patents. It would also make the approval process more difficult for generic drug makers and extend protections for
biologic medicines. Public health and open internet groups have campaigned hard for years around these issues,
and public intellectuals like Joe Stiglitz have warned against using the treaty to "restrict access to knowledge."

January 2015

Page 166

State-owned enterprises: Many TPP governments, in particular Vietnam, Singapore and Malaysia, essentially
own large parts of their economies. Negotiations have aimed to limit public support for these companies in order
to foster competition with the private sector, but given the U.S.' own government-sponsored enterprises they
probably won't go too far.
Market access: Though the treaty envisions dropping all tariffs, tensions remain between the U.S. and Japan
over support for both of their agricultural sectors, as well as Japan's willingness to accept U.S.-made automobiles.
Investor-state dispute resolution: Most modern free trade agreements include some mechanism for investor
parties to sue governments directly for failing to abide by the terms of the agreement, which some public interest
advocates worry will have a chilling effect on domestic regulation aimed at consumer and environmental
protection.
Opposition to TPP
According to activists, the TPP would be a grab-bag of policies designed to empower corporate entities while
stripping the people of these twelve nations of self-determination and democratic process. According to a civil
rights advocacy group:
Although it is called a free trade agreement, the TPP is not mainly about trade. Of TPPs 29 draft chapters, only
five deal with traditional trade issues. One chapter would provide incentives to offshore jobs to low-wage
countries. Many would impose limits on government policies that we rely on in our daily lives for safe food, a
clean environment, and more. Our domestic federal, state and local policies would be required to comply with TPP
rules.
The TPP would even elevate individual foreign firms to equal status with sovereign nations, empowering them to
privately enforce new rights and privileges, provided by the pact, by dragging governments to foreign tribunals to
challenge public interest policies that they claim frustrate their expectations.
China showing interest in joining TPP
Whats fascinating is that China seems to be catching TPP fever as the trade negotiations accelerate. Four years
ago, when the talks began, Beijing was dismissive. Chinese leaders argued that the Great Recession showed
America wasnt competent to lead the global economy, and that the TPP was just another scheme to encircle and
contain the fast-growing Chinese economy.
You dont hear that kind of carping now. Chinese Prime Minister Li Keqiang sounded supportive at the World
Economic Forum in Davos, where he said: We need to act along the trend of our time, firmly advance free trade,
resolutely reject protectionism, and actively expand regional economic cooperation.
Chinese officials go further in private, in recent conversations in Beijing and Washington. They said China wants
to negotiate membership in the TPP, and, indeed, would like to join in the process of setting its rules. The Chinese
are more cautious in talking with U.S. trade officials, asking instead how the process might work. But the message
is clear: China sees this train leaving the station and wants eventually to be onboard.
U.S. Trade Representative Michael Froman is said to have cautioned the Chinese that it will take a while for their
economy to match the openness that the TPP would require. But in the meantime, the U.S. and China are
negotiating a bilateral investment treaty that front-loads some of the toughest TPP issues. Chinese President Xi
Jinping personally decided last year to embrace the investment treaty. The two sides are bargaining now over the

January 2015

Page 167

so-called negative list of industries or products that would be excluded from the pact; everything else would be
included a big jump for Beijing.
The Chinese seem to realise that they have to live in a TPP world. Other Asian countries that stayed out of this
round, such as South Korea and the Philippines, have signalled they want in. As a trading nation, China either
joins its neighbours or risks losing a share of the expanding global market.

January 2015

Page 168

What is the difference between GSLV and PSLV?


Both PSLV (Polar Satellite Launch Vehicle) and GSLV (Geosynchronous Satellite Launch Vehicle) are the satellitelaunch vehicles (rockets) developed by ISRO. PSLV is designed mainly to deliver the earth-observation or
remote-sensing satellites with lift-off mass of up to about 1750 Kg to Sun-Synchronous circular polar orbits of
600-900 Km altitude.
The remote sensing satellites orbit the earth from pole-to-pole. An orbit is called sun-synchronous when the angle
between the line joining the centre of the Earth and the satellite and the Sun is constant throughout the orbit.
Due to their sun-synchronism nature, these orbits are also referred to as Low Earth Orbit (LEO) which enables
the on-board camera to take images of the earth under the same sun-illumination conditions during each of the

January 2015

Page 169

repeated visits, the satellite makes over the same area on ground thus making the satellite useful for earth
resources monitoring.
The GSLV is designed mainly to deliver the communication-satellites to the highly elliptical Geosynchronous
Transfer Orbit (GTO). The satellite in GTO is further raised to its final destination, viz., Geo-synchronous Earth
orbit (GEO) of about 36000 Km by firing its in-built on-board engines.
Due to their geo-synchronous nature, the satellites in these orbits appear to remain permanently fixed in the same
position in the sky, as viewed from a particular location on Earth, thus avoiding the need of a tracking ground
antenna and hence are useful for the communication applications.
Two versions of the GSLV are being developed by ISRO. The first version, GSLV Mk-II, has the capability to
launch satellites of lift-off mass of up to 2,500 kg to the GTO and satellites of up to 5,000 kg lift-off mass to the
LEO. GSLV MK-II is a three-staged vehicle with first stage using solid rocket motor, second stage using liquid fuel
and the third stage, called Cryogenic Upper Stage, using cryogenic engine.

India-based Neutrino Observatory


India-based Neutrino Observatory (INO) is a proposed particle physics research project to primarily study
atmospheric neutrinos in a 1,300 meters (4,300 ft) deep cave near Theni, Tamil Nadu. This project is notable in
that it is anticipated to provide a precise measurement of neutrino mixing parameters. The project is a multiinstitute collaboration and one of the biggest experimental particle physics projects undertaken in India.
India was a world leader in 1965 in the field of neutrino science. In the mid-1990s, with the closing of the Kolar
Gold Fields which was the site of the experiments, experimental neutrino research in India came to a halt, and the
INO is expected to revive the lost advantage.
The project, expected to be completed in 2015 at an estimated cost of 1,500 crores, has been cleared by
the Ministry of Environment (India) for construction in the Bodi West Hills Reserved Forest in the Theni
district of Tamil Nadu. When completed, the INO will house the world's most massive magnet, four times larger
than the 12,500-tonne magnet in the Compact Muon Solenoid detector at CERN in Geneva, Switzerland.
The initial goal of INO is to study neutrinos. Neutrinos are fundamental particles belonging to the lepton family.
They come in three flavours, one associated with electrons and the others with their heavier cousins the muon and
the Tau. According to standard model of particle physics, they are mass less. However recent experiments indicate
that these charge-neutral fundamental particles have finite but small mass which is unknown. They oscillate
between flavours as they propagate. Determination of neutrino masses and mixing parameters is one of the most
important open problems in physics today. Over the years this underground facility is expected to develop into a
full-fledged underground science laboratory for other studies in physics, biology, geology, hydrology etc.

January 2015

Page 170

Meningitis: Indian vaccine will protect infants in


Africa
A meningitis vaccine (MenAfriVac) manufactured by Serum Institute of India, Pune was approved by WHO for
use in infants in sub-Saharan African populations. The vaccine will be introduced as part of the routine
immunization programme.
In the four years since its introduction in Africa, MenAfriVac has had an immediate and dramatic impact in
breaking the cycle of meningitis A epidemics, a WHO release said. The vaccine has already been used in those
aged 1-29 years. But with the WHOs approval, the vaccine can be given to infants thereby protecting million
more children at risk of the deadly disease. About 200,000 people suffer from meningitis every year in the
region. The disease kills 20,000 to 25,000 people in the region every year.
Meningitis is an acute inflammation of the protective membranes covering the brain and spinal cord. The
inflammation may be caused by infection with viruses, bacteria, or other microorganisms, and less commonly by
certain drugs. Meningitis can be life-threatening because of the inflammation's proximity to the brain and spinal
cord; therefore, the condition is classified as a medical emergency.
The most common symptoms of meningitis are headache and neck stiffness associated with fever, confusion or
altered consciousness, vomiting, and an inability to tolerate light (photophobia) or loud noises (phonophobia).
Children often exhibit only nonspecific symptoms, such as irritability and drowsiness. If a rash is present, it may
indicate a particular cause of meningitis; for instance, meningitis caused by meningococcal bacteria may be
accompanied by a characteristic rash.
Meningococcal meningitis is highly contagious. People infected with meningitis often carry the disease without
showing symptoms and spread the bacteria through coughing and sneezing. Overcrowding and cramped living
conditions increase the risk of spreading the disease. A range of antibiotics can treat the infection, including
penicillin, ampicillin, chloramphenicol and ceftriaxone. However, timely mass vaccinations are the most effective
means of limiting the spread of epidemics.
Two vaccines the Pneumococcal Conjugate vaccine and the Haemophilus Influenza (type B) vaccine are now
available in India to combat meningitis.

Crowdsourcing
Crowdsourcing is the process of obtaining needed services, ideas, or content by soliciting contributions from a
large group of people, and especially from an online community, rather than from traditional employees or
suppliers. The process of crowdsourcing is often used to subdivide tedious work. It combines the efforts of
numerous self-identified volunteers or part-time workers, where each contributor of their own initiative adds a
small portion to the greater result. It is distinguished from outsourcing in that the work comes from an undefined
public rather than being commissioned from a specific, named group.
Coined in 2005, the word "crowdsourcing" can apply to a wide range of activities. Crowdsourcing can
involve division of labour for tedious tasks split to use crowd-based outsourcing, but it can also apply to specific
requests, such as crowdfunding, a broad-based competition, and a general search for answers, solutions, or a
missing person. Crowdtesting is another example of the utilization of the crowd to provide software testing
services. Crowdtesting is becoming a major player in the software world with recent studies stating that 55% of

January 2015

Page 171

companies have adopted crowdsourced services in 2014 and more plan to utilize crowdtesters in 2015 and moving
forward.
Examples of crowd sourcing
Wikipedia They are perhaps the pioneers of crowdsourcing. The not-for-profit Wikipedia Foundation
launched its free, web-based, multilingual and collaborative encyclopaedia in 2001. It has over 17 million articles
written collaboratively by the community and is the most popular reference site on the internet.
Apple - Much of the product information and support required is found in forums where people share their
knowledge. For example, Googling iPhone 3GS frozen returns a multitude of answers (including YouTube
videos), only one of which is from the official Apple support site.
Astronomy - A modern day version of crowdsourcing in astronomy is NASA's photo organizing project which
asks internet users to browse photos taken from space and try to identify the location the picture is documenting.
The Climate CoLab, housed at MITs Center for Collective Intelligence, brought more than 10,000 users to its
crowdsourcing platform to devise solutions to climate change. Dr. Geoffrey Hay (University of Calgary) and his
team were awarded the $10,000 Grand Prize for their Heat Energy Assessment Technology (HEAT) proposal.
HEAT takes homeowners to a free Web tool where they can easily identify areas of heat loss in their homes.
Catwalk Genius based in Ireland, Catwalk Genius is a crowd funding fashion site. People buy a small share of
a collection enabling struggling designers to showcase their work. Each share costs 10 and when 5,000 have
been sold the designer is commissioned to create a collection. Those who bought shares are then given a
proportion of the profits from the collection based on the number of shares they purchased.
Mapping worlds magnetic field - Scientists at the National Geophysical Data Centre, Boulder, U.S. have
come up with a novel way to crowd-source geomagnetic data for their project to map the worlds magnetic field.
They have developed an app called CrowdMag which is to be downloaded to your mobile phone. Enabling
background reporting on this app will cause the phone to transmit vector magnetic data at regular intervals.
Combining this data with that obtained from real-time solar wind data, the scientists will be able to create models
of the Earths magnetic field.

January 2015

Page 172

M Sathiyavathy is the new DGCA chief


The government has appointed M Sathiyavathy as Director General of Civil Aviation (DGCA).
Sathiyavathy, who will replace Prabhat Kumar, will be the first woman to become the chief
aviation regulator, for period of three years till 2017.
Dr. Vasant Ranchod Gowarikar
Former ISRO chief and renowned Scientist Dr. Vasant Ranchod Gowarikar passed away . He is considered as
the Father of the Indian Monsoon Model.
Pingali Venkayya
Was a freedom fighter and designer of the National Tri-Colour that became
synonymous with the spirit of free and independent India. It was Venkayyas
suggestion at the National Conference of Indian National Congress held in
Kakinada on March 31, 1921 that India should have a flag of its own that impressed
Mahatma Gandhi.
Tulsi Gabbard
Congresswoman Tulsi Gabbard is the first Hindu lawmaker in US to take her oath on BhagavadGita. She was administered the oath of office by re-elected Speaker of US House of Representatives
John Boehner. She is representing Hawaiis second congressional district since 2013.
Dr. Ami Bera is the only serving Indian-American in the current Congress. He has been elected as
co-chair of the Congressional Caucus on India and Indian Americans which is the largest countryspecific caucus in the House of Representatives.
He is representing, Californias 7th congressional district since 2013 and is third Indian-American
elected to the House of Representatives after Dalip Singh Thind and Bobby Jindal.
Maithiripala Sirisena
He was sworn-in as 7th President of Sri Lanka. In this Presidential election, Maithiripala Sirisena got
huge support of rainbow coalition of several parties and minority communities as he had promised
constitutional, electoral and administrative reforms within a hundred days of coming to power.

January 2015

Page 173

Avinash Chander
He is the chief architect of Agni series of ballistic missile systems and considered as Agni
man of India. He was awarded Padma Shri for his contribution in the successful
development of 5000-km range Agni-V missile.
Justice Surendra Kumar Sinha
He was appointed Chief Justice of Bangladesh by President Mohammad Abdul Hamid. With this appointment, he
has become the first Hindu to hold highest judicial post in the Muslim-majority country.
Leela Samson
She resigned as the chief of Central Board of Film Certification after Film Certification Appellate
Tribunal (FCAT) cleared the controversial film Messenger of God featuring Dera Saccha Sauda chief
Gurmeet Ram Rahim Singh in lead role. She is a Bharatanatyam dancer, choreographer, instructor
and writer. She was awarded the Padma Shri in 1990 and the Sangeet Natak Akademi Award in 1999.
Bhakti Sharma
Has set a world record by swimming 1.4 miles in 52 minutes at one degree temperature in the Antarctic Ocean.
She has bettered the earlier free swimming record of British open water swimmer Lewis Pugh and American
swimmer Lynne Cox. She is also the first Asian girl and youngest in the world to achieve this feat.
Jhumpa Lahiri
Indian-American author Jhumpa Lahiri won the $50,000 DSC Prize for Literature, one of South
Asias top literary awards for her book, The Lowland. She earlier won the 2000 Pulitzer Prize for
Fiction, and her first novel, The Namesake (2003).
DSC Prize for South Asian Literature - It is awarded annually to writers of any ethnicity or
nationality writing about South Asia such as culture, politics, history, or people. It was instituted in
2011.
King Abdullah bin Abdulaziz
Saudi Arabias King Abdullah bin Abdulaziz has died. He had ruled since 2005. His 79-yearold half-brother, Salman, has been confirmed as the new king.

Saraswathi Menon
An eminent Indian academician is among seven experts nominated by UN chief Ban Ki-moon to be
part of an advisory group that will conduct a policy and institutional review of the world body's peace
building architecture and make recommendations.

Pooja Thakur
Wing Commander Pooja Thakur has become the first woman officer to lead the ceremonial
Guard of Honour at Rashtrapathi Bhavan. She led the ceremonial Guard of Honour which
was inspected by the U.S. President Barack Obama at Rashtrapathi Bhavan.

January 2015

Page 174

R K Lakshman
Eminent cartoonist, illustrator and humorist Rasipuram Laxman has passed away. He is
best known for creation of iconic character The Common Man, for his daily cartoon strip, You
Said It in The Times of India(TOI). It was started in 1951. This character held a mirror to the
society and targeted politicians for more than five decades. Mr. Laxman, has been awarded the
prestigious Padma Vibhushan and the Magsaysay Award.

Paulina Vega
Colombias Paulina Vega was crowned as The 63rd Miss Universe.
Miss Universe
1. It is an annual international beauty pageant that is run by the Miss Universe
Organization.
2. Along with the Miss World and Miss Earth contests, Miss Universe is one of the
three largest beauty pageants in the world and one of the most anticipated beauty
pageants worldwide.
3. It was founded in 1952 by the California clothing company Pacific Mills.
Shekhar Sen
Eminent singer, composer, lyricist and actor Shekhar Sen has been appointed as the chairman of the Sangeet
Natak Akademi (SNA).
Subrahmanyam Jaishankar
Union Government has appointed Subrahmanyam Jaishankar as the new Secretary of
Ministry of External Affairs (i.e. Foreign Secretary). He will be replacing incumbent Foreign
Secretary Sujatha Singh.
Robert Mugabe
Zimbabwes President Robert Mugabe has been appointed as Chairman of African Union (AU). He will be
13th Chairman of African Union (AU) and succeed Mauritanian President Mohamed Ould Abdel Aziz for a oneyear term. The position of chairman of the AU is a rotating one on yearly basis and largely ceremonial.
Subhash Ghisingh
Gorkha National Liberation Front (GNLF) founder Subhash Ghisingh has passed away. He had spearheaded the
Gorkhaland movement in the 1980s for a separate state for ethnic Gorkha people living in Darjeeling district of
West Bengal. He was first chairman of Darjeeling Gorkha Hill Council after winning the first council elections
1988 to 2008.
Arvind Panagariya
Eminent free-market economist Arvind Panagariya has been appointed to run Indian prime minister
Narendra Modi's new policy commission, or NITI Aayog. He was Chief Economist at the Asian
Development Bank (ADB).

January 2015

Page 175

Padma Awards 2015


Padma Awards, the countrys highest civilian awards, are conferred in three Categories viz. Padma Vibhushan,
Padma Bhushan and Padma Shri. The Awards are given in various disciplines- art, social work, public
affairs, science and engineering, trade and industry, medicine, literature and education, sports, civil service, etc.

January 2015

Page 176

Q1. Starting from Indias independence analyze how the Indo-US bilateral relationship has evolved?
Q2. Signing of the Indo-U.S. nuclear deal was a high point in the bilateral relationship between India and United
States but for various reasons the deal could not be operationalized. Discuss those reasons and the agreements
made between India and US during President Obamas visit to remove the hurdles in operationalization of the
nuclear deal.
Q3. Increasing proximity between India and US will make it increasingly tough for India to manage its
relationship with Russia. Critically analyze this statement in light of Russias decision to sell military equipment to
Pakistan.
Q4. Devyani Khobragade incident and the stand-off in WTO had soured the relationship between India and
United States. Discuss the steps taken by both sides to reboot the bilateral ties.
Q5. In light of the devastating Fukushima Disaster discuss the need to retain clause 17(b) in the Indian Nuclear
Liabality Law.
Q6. In a vision statement released during Obamas visit, India and the U.S. have criticized China for its aggressive
stance in the South China Sea. The statement makes it clear that the US considers India an important ally in its
pivot to Asia. Is India making a right choice by aligning itself so closely with the United States?
Q7. Is Indias Nuclear Liability Law in contravention of the global standard? Discuss.
Q8. Discuss how the membership of global export control regimes like NSG, MTCR etc. would be beneficial for
India.
Q9. The draft national health policy proposes making health a fundamental right. Does India have the necessary
resources money, health workers, hospitals, diagnostic facilities etc. to make health a justiciable right?
Q10. With the Indian economy making a transition from centrally planned economy to a largely market economy
it was felt that the Planning Commission had outlived its utility. In light of the statement evaluate the features of
NITI Aayog and compare it with the erstwhile Planning commission.

January 2015

Page 177

Q11. Think tanks are often believed to have significant impact on policy making. Discuss the ways in which they
influence policies and the difference between lobbyists and think tank.
Q12. Net Neutrality is a prerequisite to ensure a free and fair access to internet for all. Outline the principles of
Net Neutrality and its importance to the netizens.
Q13. Deaths caused during botched up sterilizations has created a furore in the country. Discuss the
appropriateness of the targets approach towards achieving sterilization goals.
Q14. Internet is being increasingly used by terrorist organizations to recruit people, spread propaganda and
collect funds. Are Indias cyber laws and monitoring infrastructure adequate to tackle this menace? Comment.
Q15. Indian constitution guarantees freedom of speech and expression. Is the freedom of speech and expression
an absolute right? Discuss in the light of recent controversy over Wendy Donigers book which was pulled from the
shelves by the publisher after protests by various Hindu religious and social groups.
Q16. Can decontrol of Urea solve the woes of fertilizer producers and farmers?
Q17. Land Acquisition Act was hailed by activists as a victory of farmers against oppression of the state but the
captains of industry were opposing the act from the day it was passed by the parliament. Recently the government
has made certain amendments to the act to reduce delays in acquisition of land. Do these amendments erode the
spirit of the act? Comment.
Q18. Spread of Ebola in Africa has shown that weak healthcare systems and lack of preparedness can spell
disaster in the event of outbreak of a deadly disease. Is India prepared to take on the spread of a disease like
Ebola?
Q19. Womens empowerment was the theme of this years Republic Day parade. India showcased woman
power with all-women contingents of the three Services for the first time. But women Army officers are still
denied permanent commission on par with men. They have to be content with the short service commission. Do
you think it is time to make amends and give women equality in employment in armed forces?
Q20.China is pushing Maritime Silk Road in Indias backyard with the eager support of countries like Sri Lanka
and Maldives. Is the recently launched Project Mausam Indias strategic answer to Chinas MSR? Comment.
Q21. Narco-terrorism is posing a serious threat to Indias security. Discuss the factors responsible for increasing
drug use in the country and its consequences for the nation. Also highlight the steps taken by the government to
combat drug trafficking.
Q22. Cities are referred to as the engines of economic growth. Unplanned urbanization to accommodate the
burgeoning number of people would soon make the cities unlivable. Critically examine the pillars of SMART cities
as a solution for sustainable urbanization.
Q23. Xaxa committee was formed by the government of India to suggest ways to improve the socio-economic
status of tribals. Highlight the main recommendations of the committee.
Q24. A recent ordinance passed by the Rajasthan government has laid down minimum educational qualifications
for contesting elections to local bodies. Express your views on this move of the government and discuss if such
qualifications should be prescribed for contesting elections to state assemblies and parliament.
Q25. Chief of Central Borad of Film Certification has resigned citing interference by the government. Suggest
measures which can be adopted to ensure that statutory bodies like CBFC are completely free from government
interference.

January 2015

Page 178

Q26. The old maxim why do today what you can put off till tomorrow? is being used by the countries to not
commit to CO2 emission cuts. Discuss the major outcomes of the Lima climate deal and comment on whether the
deal represents a fundamental change in global climate regime or not?
Q27. It is being said that Israel-Palestinian tensions mirror India-Pakistan conflict. Highlight the similarities of
the disputes between the nations. Also, critically examine how the stance of India on Israel Palestine conflict has
changed since independence.
Q28. Is the Indian obsession with quota system a function of a limited institutional imagination, or are there
fundamental reasons why no other policy design has been proposed? Can the American practice of encouraging
diversity by incentivizing be used in both public and private sector?
Q29. Discuss the main factors that have sustained the militant movement in North-Eastern region over several
decades. Also highlight the root cause of failure of administrative machinery to address the problem of demand for
Bodoland.
Q30. During the making of the constitution some members of the constituent assembly stated that ordinances are
against Constitutional morality. Critically examine how the use of route of promulgation of ordinance has evolved
since independence.
Q31. Pravasi Bhartiya Divas is celebrated every year to give the Indian Diaspora a chance to connect with their
roots. What more ways could we devise to capitalize on the knowledge, expertise and skills of Indian Diaspora to
maximize our growth potential?
Q32. It is commonly perceived that FCI is plagued with several functional and cost inefficiencies which need to be
removed for better management of food-grain and cost saving. Critically examine the reasons for these
inefficiencies and discuss key recommendations made by Shanta Kumar panel.
Q33. RBI has been successful in bringing down non-food inflation but it has not been able to soften food prices.
Analyze the factors responsible for RBIs inability to control food inflation even after keeping the interest rates
high for considerable period of time.
Q34. It is believed that GST will have a transformational impact on the Indian Economy. Discuss the contentious
issues involved in the implementation of GST and how will it improve the productivity of Indian economy. Give an
example of GST benefiting the Transport sector.
Q.35 Indias space programme has been a success story. However, one success that was eluding the Indian Space
Research Organisation for many years was its indigenous Geosynchronous Launch Vehicle. Why is GSLV mission
so important for Indian Space Programme? Discuss.
Q36. In light of the Supreme Court judgment in Berubari case, discuss the appropriateness of demand of Tamil
groups in the country to take back Katchthhevu island from Sri Lanka.
Q37. India had a major role to play in shaping of the armed conflict in Sri Lanka. Discuss how Indias stance
changed from supporting the conflict in early 80s to sending the peace keeping force towards the end of that
decade.
Q38. India voted twice against Sri Lanka in the UN Human Rights Council. That move of India antagonized Sri
Lanka and its proximity with China increased as a result of its isolation. Now the Indian side is on a course
correction. Discuss the importance for India of maintaining cordial relationship with Sri Lanka.
Q39. Docking of Chinese naval vessels in Colombo is a cause of concern for India. Comment.

January 2015

Page 179

Q40. What role can India play in the reconciliation process in Sri Lanka with a new government at helm in both
the countries?
Q41. Annual Status of Education Report brought out by an NGO - Pratham has highlighted the dismal state of
schooling in our country. Despite having nearly universal enrolment at primary level the learning outcomes leave
a lot to be desired. Suggest measures to improve the situation.
Q42. After the ghastly Peshawar attack on a military school the Pakistan government has vowed to end the
distinction between good and bad Taliban. Discuss the implications of this move for India.
Q43. Is inflation targeting a suitable policy to adopt for a country at Indias level of development? Comment in
light of the recommendations made by Urijit Patel committee.
Q44. Discuss in detail how repo rate, CRR and SLR are used by RBI to manage inflation and liquidity in the
economy.

January 2015

Page 180

Das könnte Ihnen auch gefallen