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GS - 2

Contents1 Polity + Rights issue ............................................................................................................................... 4

1.1 Andhra Pradesh hoping for special category status.............................................................. 4

1.2 Radically reforming higher education..................................................................................... 4

1.3 Fresh ideas, not more institutions ........................................................................................... 5

1.4 A step back for education .......................................................................................................... 7

1.5 Cleaning up Ganga among Ministrys top priorities............................................................ 10

1.6 Cleaning the Ganga, step by step ........................................................................................... 10

1.7 Naveen seeks special status for Odisha................................................................................. 11

1.8 West Bengal, Maharashtra ink pact on victims of trafficking............................................ 121.9 A huge health burden............................................................................................................... 12

1.10 Will tax hike reduce tobacco consumption in India?.......................................................... 13

1.11 Fighting for survival ................................................................................................................. 14

1.12 PM briefed on nuclear command chain................................................................................ 15

1.13 INS Arihant propels India to elite club ................................................................................. 16

1.14 Tamil Nadu presents its case .................................................................................................. 16

1.15 Sumitra Mahajan to be elected Speaker today..................................................................... 17

1.16 Reports on rethink on Subramanium appointment speculative: official......................... 18

1.17 Narmada dam to be higher by 17 m....................................................................................... 19

1.18 New norms for granting minorty tag..................................................................................... 19

1.19 A prime ministerial form of government.............................................................................. 19

1.20 DEMOCRATIC CREDENTIALS ON TEST........................................................................... 20

1.21 Cutting through legal clutter................................................................................................... 20

1.22 Govt. eases out UPA appointees............................................................................................. 22

1.23 Independence from the government ..................................................................................... 22

1.24 Guard against hasty revision .................................................................................................. 23

1.25 Modi govt.s first Budget on July 10 ...................................................................................... 24

1.26 Supplementing without supplanting ..................................................................................... 24

1.27 Objections from judges force rethink on judicial accountability Bill................................ 25

1.28 Judges list: Gopal Subramanium opts out............................................................................ 26

2 Pub Ad related .................................................................................................................................... 27

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2.1 For quicker decision-making .................................................................................................. 27

2.2 Modi dissolves 4 Cabinet panels ............................................................................................ 28

2.3 Lack of real time data to impact policy making................................................................... 28

2.4 Pricing public transport........................................................................................................... 29

2.5 Lokpal is no magic bullet ........................................................................................................ 30

2.6 NGOs stance on development projects to hit growth: IB................................................... 31

2.7 Answering to law, not to Caesar ............................................................................................. 32

2.8 The importance of dissent in democracy .............................................................................. 32

2.9 Individuals and institutions.................................................................................................... 33

3 IR/Diplomacy ....................................................................................................................................... 34

3.1 China wary of Japans proactive role................................................................................... 34

3.2 China says U.S., Japan singing notes in chorus................................................................. 35

3.3 Japan, China in fresh spat....................................................................................................... 35

3.4 US seeks to cut power plant carbon by 30 p.c...................................................................... 35

3.5 Obamas climate plan: rhetoric vs. reality ............................................................................ 36

3.6 Sri Lanka arrests 33 Indian fishermen.................................................................................. 36

3.7 New realities in the world order............................................................................................. 38

3.8 Offering an alternative narrative............................................................................................ 39

3.9 An opportunity to seal a deal with Pakistan......................................................................... 40

3.10 The President others want ...................................................................................................... 41

3.11 G7 leaders to discuss Ukraine crisis ...................................................................................... 41

3.12 U.S. security plan for eastern Europe.................................................................................... 42

3.13 In a hole, and still digging ....................................................................................................... 43

3.14 Abbas swears in Palestinian unity government................................................................... 43

3.15 Modi-Obama talks in September ........................................................................................... 44

3.16 Modi sets a furious pace for international visits.................................................................. 44

3.17 A doctrine of economic levers, soft power............................................................................ 45

3.18 WTO: Modi banks on BRICS .................................................................................................. 47

3.19 U.S. push to tag India as emerging economy aimed at market access............................ 47

3.20 Letter exchange reflects Modis direct diplomacy ............................................................... 48

3.21 Hydel projects central to our ties ......................................................................................... 48

3.22 Modi stresses B2B ties with Bhutan .................................................................................... 49

3.23 Reaching out to Bhutan ........................................................................................................... 49

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3.24 No strategic contest with India: China.................................................................................. 50

3.25 PMs visit signals maritime ambitions .................................................................................. 50

3.26 Afghanistan bets on Indian help after U.S. drawdown....................................................... 51

3.27 Colombo rejects Jayalalithaas allegations ........................................................................... 51

3.28 Victims of political manipulation........................................................................................... 52

3.29 Sushma, Wang talk trade ........................................................................................................ 53

3.30 Border resolution must be fair: Wang................................................................................... 53

3.31 China invites India to join Asian Infrastructure Investment Bank................................... 54

3.32 Fixing problems of workers overseas is priority: Sushma.................................................. 54

3.33 ECB hurls cash at euro zone economy, says not done yet.................................................. 54

3.34 Mass surveillance is permitted by law in the U.K.............................................................. 55

3.35 Rebels seize Iraq's second-largest city .................................................................................. 55

3.36 Iraq trouble ............................................................................................................................... 56

3.37 Turning to Iran ......................................................................................................................... 56

3.38 War in Iraq hurts every home in India.................................................................................. 57

3.39 India must find its voice in West Asia ................................................................................... 57

3.40 A time for Arab, Asian statesmanship............................................................................... 59

3.41 Changing rules of the game of thrones.................................................................................. 59

3.42 Rafale deal to top French Foreign Ministers agenda.......................................................... 60

3.43 India eases visa norms for senior Bangladeshi national..................................................... 60

3.44 Hasina seeks partnership with China.................................................................................... 60

3.45 Teesta high on Dhakas agenda .............................................................................................. 61

3.46 India more open to n-inspections .......................................................................................... 62

3.47 Positive step, but hurdles remain........................................................................................... 62

3.48 Mysore site may be covertly used to produce n-material: U.S. think tank...................... 63

3.49 Agenda for nuclear diplomacy................................................................................................ 63

3.50 Upholding the Five Principles ................................................................................................ 64

3.51 Moving beyond the Panchsheel deception ........................................................................... 66

3.52 Kabul cannot fight terror alone: envoy ................................................................................. 67

3.53 Continue the conversation ...................................................................................................... 67

4 Yearbook/welfare schemes ................................................................................................................ 68

4.1 UPA flagship scheme to be rejigged....................................................................................... 68

4.2 KANYASHREE PRAKALPA.................................................................................................... 68

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4.3 The battle for toilets and minds ............................................................................................. 69

4.4 The new urban agenda............................................................................................................. 69

4.5 UN award for govts Mobile Seva initiative .......................................................................... 70

1 POLITY

+

R

I HTS ISSUE

1.1 ANDHRA PRADESH HOPING FOR SPECIAL CATEGORY STATUSN. Chandrababu Naidu, made a strong bid for the special package and financial assistance to the

fledgling Seemandhra comprising 13 districts.

The special category status requires discussion in the Planning Commission followed by the

National Development Council. The proposal includes a six-point development package,

comprising tax and industrial incentives as offered to Uttarakhand and Himachal Pradesh.

The A.P. Reorganisation Bill already provides for a special development package for thebackward regions of the successor State, particularly the seven districts of Rayalaseema and

north coastal Andhra. This is proposed on the lines of the KBK (Koraput-Bolangir-Kalahandi)

special plan in Odisha.

The special category status proposed for a period of five years is expected to put the States

finances on a firmer footing.

Fiscal measures like tax incentives are intended to promote industrialisation and economic

growth in both the States. The special package includes expansion of physical and social

infrastructure in the backward regions. It proposes setting up of a AIIMS type super speciality

hospital cum teaching institute and National Institute of Disaster Management in the successor

State besides tribal university one each in both the states.

Other infrastructure projects proposed are

New major port at Durgarajapatnam, Nellore

IOC/HPCL crude oil refinery

Vizag-Chennai Industrial corridor

new railway zone

metro rail facility in Vizag and Vijaywada-Guntur-Tenali-Mangalagiri UrbanDevelopment Authority.

1.2 RADICALLY REFORMING HIGHER EDUCATIONAuthor points out to the problems in higher education of our country which can be worked out:

politicization of public institutions,

a perceived lack of regulation of faculty and

desirability of creating knowledge as opposed to disseminating it.

1. Regulation of the faculty

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a form of regulation of the faculty does exist: college lecturers are required to teach for around

16 hours a week.

Problem with this regulation: This must amount to at least three times the global average. It is

anybodys guess what the quality of these lectures is, given that young teachers have no time to

prepare for them.

Solution: tutorials should be instituted to complement lectures. This is not just to ensure that

students have a second chance to comprehend difficult ideas, but to encourage them to actually

communicate what they have learnt.

2. Lack of faculty accountability

Solution: Student evaluation of coursespublicly displayed is the surest way of instilling

accountability among faculty. It should also be taken into account when a lecturer comes up for

promotion.

3. Lack of Knowledge Creation

Problem: we are largely consumers rather than producers. This is related to our approach to

knowledge creation. A few years ago, the UGC instituted a form of research evaluation based on

a points system. Thisapproach to governing knowledge creationis subsumed under the

metric Academic Performance Indicator (API), a quantitative summary of a lecturers output.

Research itself is scored on the basis of a ranking of journals in which it is published. This

system of governing is objective but is not giving the desirable results.

Solution:

research ought to be assessed on its own merits rather than on the basis of the journal inwhich it was published.

The long-standing practice in India had been to have research peer-reviewed and thesereports considered by a committee of experts. There should be a return to this practice as it issuperior to the points-based system which prejudges content and quality.

Finally, in issuing a guideline for assessing research, the UGC must focus exclusively onthe researchers contribution to knowledge and cease privileging foreign publications overIndian ones and international conferences over national ones.

1.3 FRESH IDEAS,NOT MORE INSTITUTIONSProblems of higher education in India and changes required are:

1. Indian Universities seldom make an appearance in International rankings whereas Asian

universities which are only two decades old are making into the top rankings.

Further in Indian Universities there is no scope for knowledge creation and serious research and

scholarship.

Effecting transformation involves five things:

substantial resources,

a progressive regulatory environment in which higher education regulators begin to trustuniversities

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a new governance model for creating opportunities and space for research andscholarship

an enabling environment within universities that will significantly incentivise researchand publications

an attitudinal change among all stakeholders in the higher education sector

Mindless expansionWith its focus on expanding the higher education sector and increasing the Gross Enrollment Ratio

there has been mindless expansion leading to:

1. Mediocrity

2. Well funded Central institutes having inadequate faculty

3. State Universities having neither the resources nor the faculty

To tackle this government needs to:

1. fill the faculty positions in a time bound manner

2. Tactful engagement with the institutions and a creative approach to faculty recruitment.

3. Archaic policies that have outlived their time should be dispensed with while recruiting

faculty.

While all this is done no more new IITs or IIMs

Lack of Knowledge creation and Research

Here also focus has been on building laboratories and knowledge parks, promoting an industry-

academia interface and pursuing research grants and creating incubators.

1. There is a need to start a culture of research instead.

2. focus on a set of specific goals

3. Having a select of institutions both from private and public to represent the best and they

should be enhanced in terms of their research capacities so as to serve as role model to future

universities.

Lack of collaborations

New ideas and perspectives can be developed only when there is collaboration among universities

and faculty. But such collaborations are missing because of:

1.biases and prejudices that have led to skepticism

2. bureaucratic approach of university managements and regulators has led to the creation of

too many hurdles in the pursuit of any meaningful collaboration

So following things need to be done:

1. Existing policies relating to research collaborations both within and outside India need to be

re-examined and made more progressive and inclusive

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2. ensuring greater autonomy and freedom to universities to determine who they want to

collaborate with and what the terms of collaboration should be

3. remove the distinctions that exist in relation to public and private universities; instead,

universities ought to be differentiated on the basis of their performance and contribution

Innovation

1. The biggest challenge is to create an enabling environmentto promote innovation.

2.Archaic rules and regulationsthat are constantly flouted have given rise to opportunities

to dubious institutions to be engaged in corruption.

3. There is a need to seek a change in the attitude of government departments that are

involved in policymaking, and regulatory bodies that are monitoring and ensuring standards in

higher education.

4. The deep distrust that is prevalent among the institutions on the one hand and the

government and regulatory bodies on the other has made the higher education sector static.

There is little effort in seeking innovation. This has to change, and quickly.

1.4ASTEP BACK FOR EDUCATIONSince we have statutory bodies in our course so UGC becomes an important topic. So first some

gyaan on UGC:

The University Grants Commission (UGC) of India is a statutory organisationset up by the

Union government in 1956.

Current Chairman : Prof Ved Prakash

Mandate:

The UGC has the unique distinction of being the only grant-giving agency in the country which

has been vested with two responsibilities: that of providing funds and that of coordination,

determination and maintenance of standards in institutions of higher education. The UGC's

mandate includes:

1. Promoting and coordinating university education.

2. Determining and maintaining standards of teaching, examination and research in

universities.

3. Framing regulations on minimum standards of education.

4. Monitoring developments in the field of collegiate and university education; disbursing grants

to the universities and colleges.

5. Serving as a vital link between the Union and state governments and institutions of higher

learning.

6. Advising the Central and State governments on the measures necessary for improvement of

university education.

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Some history (for prelims)

The present system of higher education dates back to ''Mountstuart Elphinstone's minutes

of 1823, which stressed on the need for establishing schools for teaching English and the

European sciences'''. Later, Lord Macaulay, in his minutes of 1835, advocated "efforts to

make natives of the country thoroughly good English scholars".' Sir Charles Wood's

Dispatch of 1854, famously known as the 'Magna Carta of English Education in India',

recommended creating a properly articulated scheme of education from the primary school to

the university. It sought to encourage indigenous education and planned the formulation of a

coherent policy of education. Subsequently, the universities of Calcutta, Bombay (now Mumbai)

and Madras were set up in 1857, followed by the university of Allahabad in 1887. The Inter-

University Board(later known as the Association of Indian Universities) was established in

1925 to promote university activities, by sharing information and cooperation in the field of

education, culture, sports and allied areas.

The first attempt to formulate a national system of education in India came In 1944, with

theReport of the Central Advisory Board of Education on Post War Educational

Development in India, also known as the Sargeant Report.It recommended the formationof a University Grants Committee, which was formed in 1945 to oversee the work of the

three Central Universities ofAligarh, Banaras and Delhi. In 1947, the Committee was

entrusted with the responsibility of dealing with all the then existing Universities. Soon after

Independence, the University Education Commissionwas set up in 1948 under the

Chairmanship of Dr. S Radhakrishnan"to report on Indian university education and suggest

improvements and extensions that might be desirable to suit the present and future needs and

aspirations of the country". It recommended that the University Grants Committee be

reconstituted on the general model of theUniversity Grants Commission of the United

Kingdomwith a full-time Chairman and other members to be appointed from amongst

educationists of repute.

In 1952, the Union Government decided that all cases pertaining to the allocation of grants-in-

aid from public funds to the Central Universities and other Universities and Institutions of

higher learning might be referred to the University Grants Commission. Consequently, the

University Grants Commission (UGC) was formally inaugurated bylate Shri Maulana Abul

Kalam Azad,the then Minister of Education, Natural Resources and Scientific Research on 28

December 1953. The UGC, however, was formally established only in November 1956 as a

statutory body of the Government of India through an Act of Parliament.

Now understanding the controversy:

Events in 2013:

Vice-Chancellor of Delhi University announced a Four Year Undergraduate Programme (FYUP)

in order to 1. better target courses to industrial requirements

2. to make the UG course equivalent to international UG courses.

(This was considered to be Kapil Sibal's pet project)

Problem with the course:

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1. Syllabus was drafted in a hurry and the most of it is too basic thus defeating its purpose.

2. It violates the National Policy on Education that mandates a 10+2+3 format

3. The change was not brought about through an amendment of the Universities Act; the

President (the Visitor to all central universities) was not consulted either.

So in 2014, after one year of implementation UGC declares the course illegal (after protest by

ABVP, student wing of BJP).

DU's stand:

1. UGC had supported the Universitys move last year and said that as per the Indian Education

Commission (1964-66), the duration of a programme may vary from varsity to varsity and also

within the same varsity.

2. FYUP programme was approved by the academic council and the executive council of the

university, which are statutory bodies under the Delhi University Act of 1922

But finally DU had to scrap the program (as UGC declared it illegal and threatened to stopfunding)

Now author's view in the article:

1. Section 12 (1) of the UGC Act clearly states: It is the duty of the Commission to determine and

maintain standards in higher education in consultation with the universities [emphasis added].

This makes it incumbent on the UGC to respect the institutional autonomy of all universities

and accord them due deference and latitude in complying with its regulations. This is necessary

to empower universities to undertake bold academic initiatives.

2. Some other universities are also not following the 10+2+3 policy but they have not been

declared illegal (IISC and Ambedkar University , Delhi)

3. warning the colleges that their grants will be cut if they do not comply with the UGCs

directive reflects the bodys patronising attitude toward institutions of higher learning.

4. to ask a university to scrap its existing undergraduate programme and introduce a new

programme in the middle of the admission process is inexplicable.

Our universities will be deterred from undertaking brave academic decisions in future fearing

UGCs indignation. This does not augur well for Indias higher education. This episode is a grim

reminder why India, despite having talented academicians and students, has failed to develop

world-class universities. Our universities cannot attain global standards till they are freed from

excessive officious control and the bureaucratic mindset of regulatory bodies.

My view:

Although UGC's 180 degree turn and undermining of DU's autonomy does not presents a good

picture for the future of higher education in India but making reforms for just the sake of it also

doesn't augurs well on part of DU. If it wanted to bring changes then they should have been

properly planned and executed.

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1.5 CLEANING UP GANGA AMONG MINISTRYS TOP PRIORITIES100-day priority list of the Union Ministry of Water Resources:

1) Cleaning up of the Ganga: The National Ganga River Basin Authority (NGRBA), which is

presently under the Ministry of Environment and Forests, is likely to be transferred to the Water

Resources Ministry.

2) Execution of river water-related provisions under the Telangana Act: Setting up

and operating a Krishna River Management Boardand a Godavari River Management

Boardfor overseeing the sharing of river waters and regulating projects in the two basins, as

defined in the Andhra Pradesh Reorganisation (or Telangana) Act, 2014.

An apex council, chaired by the Water Resources Minister, with the Chief Ministers of

Telangana and Andhra Pradesh as its members, will be formed for supervising the two boards.

This is also a provision in the Telangana Act.

Setting up a Polavaram National Project Authorityfor the multipurpose scheme has also

been included.

1.6 CLEANING THE GANGA,STEP BY STEPIssues affecting the river are myriad and complex.

Untreated sewage and industrial waste are dumped into the waters without remorse.

Reduced flow and rampant underground water withdrawals affect millions of peoplewho depend on the rivers water.

Further, floods and droughts, which endanger lives and cause serious damage to crops,livestock and infrastructure, are a common phenomenon in the river basin.

A changing climate will pose more challenges. The combination of glacial retreat,decreasing ice mass, early snowmelt and increased winter stream flow will add to the pressure.

Recent initiatives by the Indian government including River Development and Ganga Rejuvenation to the portfolio of the Ministerof Water Resources

establishment of the National Ganga River Basin Authority and the National Mission forClean Ganga

What all needs to be done?

1. A Basin-scale management of Ganges is required because

Ganges is a complex transboundary basin which flows across different

jurisdictions. Therefore, a basin-scale approach would help manage the water

resources better.

This would require close coordination with all the countries sharing the Ganga,

such as Nepal and Bangladesh, so that the interests of both upstream and

downstream users are taken into consideration. The existing treaties on sharing

water resources could be renegotiated as shared management of water

resources.

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2. Making waste water treatment feasible for agricultural purposes

Ganga is highly polluted. Yet, of the 400 million people living along the banks of the river,

many still rely on its natural systems for their livelihoods. According to a World Bank report, anumber of government efforts (Ganga Action Plan: Phases I and II) have attempted to address

the pollution problem, but the results have been disappointing so far. It is estimated that sewage

constitutes the largest portion (80 per cent) of the pollution load followed by pollution causedby industrial discharge agricultural activities. With agricultural activities intensifying in areas

near the river, particularly in urban and peri-urban areas, farmers frequently rely on wastewater for irrigation. This poses a serious public health risk.

However, this adversity can be turned into an opportunity as urban waste offers a significant

nutrient resource for farming, if safely treated and applied. Low cost, simple ecological

sanitation and reuse systemswill be keys to making waste water treatment feasible for

agricultural purposes.

3. Maintaining Environmental Flows

Environmental flows are essentially the water requirements of aquatic ecosystems and of basichuman, social and spiritual needs. However, the concept of environmental flow only refers to

the the quantity of water required to maintain river ecology under different environmental

conditions. Innovative methods for maintaining environmental flows and the quality of water

during environmentally critical periods, along with procedures for implementing these methods,

need to be investigated.

4. Major investments are required to address climate variability

Existing flood forecasts are often too technical and not easy for the public to

understand.Application of remote sensing and hydrological modelling has helped in

developing high-quality flood maps, which are useful for developing plans for river

conservation, maintaining the quality of water in different stretches and, more importantly,reducing the vulnerabilities of the affected communities.

Innovative approaches such asunderground taming of floods for irrigation and aquifermanagement could offer solutions to the flood problem. These approaches essentially involve

storing floodwaters in underground structures in upstream areas. This will help prevent floodsand help maintain water availability even during dry seasons.

5. Partnerships with various stakeholders

Successful implementation of this task would require partnerships with various stakeholders.Multiple agencies working to address the problem could be brought on board. The private sector

has also shown its willingness to be a partner in cleaning the river, especially at critical pointssuch as Varanasi. Similarly, the public at large, along with civil society groups, also need to be

actively engaged in these efforts.

1.7 NAVEEN SEEKS SPECIAL STATUS FOR ODISHAOdisha CM demanded: special category status for his State.

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the Polavaram project in Andhra Pradesh be scrapped as the project would causedisplacement of people and submergence of land in Malkangiri district. The State had alreadytaken the matter to the Supreme Court.

sought full compensation for the revenue loss the State would suffer due to the phasingout of the Central Sales Tax (CST). Either that, or the Centre should restore the CST rate to theoriginal 4% till the GST was implemented.

Odisha received a mere Rs. 256 crore as compensation in 2010-11 for the phase-out ofCST, as against the loss assessment of Rs. 664 crore.

Royalty rates on major minerals to be revised to 15 per cent from 10 per cent.

SPECIAL CATEGORY STATES:

These are hill, border and weak-infrastructure states. Central assistance for State plans is in the

form of Grants and Loans. For SCS the Grant component is 90% and Loan is 10%. While for

other states grant component is 30% and Loan component is 70%.

1.8WEST BENGAL,MAHARASHTRA INK PACT ON VICTIMS OF

TRAFFICKINGThe governments of West Bengal and Maharashtra have signed a MoU to ensure

identification and repatriation of women and children who are victims of

trafficking.

Why MoU?

In most cases when the Maharashtra Police rescue some women or children and find that they

are Bengali-speaking, they send them to the Statewithout ascertaining their identity or

following any procedures.

Since the identities of those rescued are not ascertained sometimes, rescue homes in the

State(WB) are flooded with women and girls from Bangladesh. On several occasions, police from

other States brought the victims to the shelters without informing the State government. This

added to the victims ordeal.From now on, a standard operating procedure (SOP)will be followed in repatriating

victims. Maharashtra will repatriate the women directly to Bangladesh once the place they are

from is confirmed. Under no circumstances will women [victims] who speak Bengali be

transferred to West Bengaltill family tracing is done.

1.9AHUGE HEALTH BURDENSome facts about tobacco consumption menace in India:

27 per cent of tobacco consumers in India fall in the 15-24 year age bracket

If the global tobacco-related mortality is about 5.5 million people annually, Indias

burden alone is nearly one million. With nearly 35 per cent of the adult population in the country addicted to the dangeroussubstance rolled in paper or leaf or packed in plastic sachets, India is the second largestconsumer of tobacco products in the world.

Now apart from health effects on people it also has severe effect on economy.

Now the usual reason given for not curbing sales of tbacco related products is that significant

revenue is raised through its sale. But what is not considered is the amount of money spent inhealth care due to this. This becomes relevant from the fact:

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The out-of-pocket expenditure on medical treatment results in higher poverty rates. A recently

released Health Ministry report estimates that 9.3 lakh people in India are affected by the healthcosts of tobacco. According to the report, the total health expenditure burden of tobacco

in the year 2011 was a little over Rs.100,000 crore. To put it in perspective, theamountwas 12 per cent more than the combined State and central government

expenditure on health in 2011-12.The revenue earned through excise duty in the same year was a paltry 17 per centof the health burden of tobacco.

Now how to curb this menace one major solution is Raising taxes:

New Union Health Minister supports higher taxes on cigarettes and tobacco products;raising tax on tobacco is the WHOs theme this year.But for any tax increase to become

effective, the price difference between various brands and different tobacco products must beminimal. But India follows a bizarre, producer-friendly excise duty structure for cigarettes,

beedis and chewing tobacco that makes a mockery of taxation. Hence, a complete overhaulof the taxation system is warranted to achieve the desired benefits.

1.10WILL TAX HIKE REDUCE TOBACCO CONSUMPTION IN INDIA?India is the second highest consumer of tobacco products in the world nearly 35 per cent ofthe adult population consumes tobacco products. Tobacco consumption kills one million indiansannually; the global burden is 5.5 million.

Health ministry recently said it supports higher taxes for cigarettes and tobacco products so they

become very expensive and thereby reduce consumption.

The author disagrees with this argument saying that taxation practices in india and developedcountries are quite different. The reasons are:

98 per cent of beedis available in the market are handmadethoughmechanisation is possible as handmade beedis are taxed just Rs.12 per 1,000 sticks whilemachine-made ones are taxed Rs.30 per 1,000 beedis.

Beedi manufacturers dont have to pay any tax if they produce less than twomillion beedis per year. Therefore, number of small-scale beedi manufacturers has reduced

by more than 50 per cent with a concomitant increase in households involved in beedi rolling.

In the case of cigarettes, unlike the system followed abroad, the taxation in India isbased on the length of the cigarette.Since longer cigarettes attract more tax, consumerssimply shift from longer cigarettes to shorter ones.

The taxation structure in India is not linked to inflation.This makes any increase intax irrelevant over a longer period. Tobacco products become cheaper relative to incomeaffordability.

Consumption can be reduced substantially through taxation only if India changes the taxation

structure. Changes needed are: Ensure that excise duty is consistent across tobacco products so as to preventproduct substitution.

Taxation of all tobacco products should be inflation-adjusted and correctedannually.

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The tax on cigarettes is about 43 per cent of the retail price. This is way below the WHOsrecommended excise duty of 70 per cent of the retail price. There is huge room for thegovernment to increase cigarette tax.

Removing the differential tax system between handmade and machine-made beedis.

Remove the tax exemption to those who produce less than two millionbeedis a year.

Tinkering with the beedi taxation system and increasing taxes on beedis will be the most

difficult part. However, huge gains will accrue if that is done. Generally People from the lowersocio-economic stratum consume beedis hence consumption will come down quickly if beedi

prices are increased.

1.11FIGHTING FOR SURVIVALSome facts highlighting the sorry state of our health system:

Of the three million neonatal deaths globally in 2012, some 779,000 were in India (Indiaranks number 1 here also)

Also, globally there were 2.6 million stillbirths in the same year, of which 600,000 werein India.

Of the one million newborns dying globally on the first day of birth, nearly one-third arein India.

The country, which had a neonatal mortality rate of 29 per 1,000 live births in 2012,recorded an average annual rate of reduction of just 2.6 per cent during 1990-2012. According topapers published recently in The Lancet, India, Nigeria and Pakistan registered the slowestrates of progressin reducing neonatal mortality.

According to a 2012 WHO report, India is one of the 10 countries with an estimated 100,000 to

250,000 preterm births, as in 2010. The high number of preterm births is one of the

reasons for the very high numbers of newborn deaths in the country pretermbirths cause about 50 per cent of neonatal mortality.

Some steps taken :

Starting 2006, over 500 special-care newborn units have been set up in district hospitals,and about 600,000 admissions take place a year.

Thanks to initiatives such as cash transfer, institutional deliveries have increased since2006.

Yet, a concomitant reduction in infant mortality has not been achieved; many deliveries still

take place at home, especially in the States of Uttar Pradesh and Bihar.

Steps required:

Need toincrease the number of well-trained birth attendants. Also, the lack of well-trained healthcare workers and well-equipped healthcare centreshas proved to be a barrier to improving newborn survival. There is, hence, an urgent needtoimprove the quality of care.

What must be borne in mind is that many of the initiatives taken to save neonates lives would

also help in reducing maternal mortality. With 50,000 deaths, India has the highest maternal

mortality in the world.

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1.12

PMBRIEFED ON NUCLEAR COMMAND CHAIN

PM has been briefed that sweeping modifications to the command and control structure ofIndias nuclear weapons are urgently needed.

The briefing on Indias most closely held secrets was given by outgoing NSA Shiv ShankarMenon and Strategic Forces Command chief Vice-Admiral P.S. Cheema.

Naresh Chandra Committee on national security reforms had called for operational control ofthe arsenal to be given to a full-time chairman of the joint chiefs of staff committee, or theCJSOC, a four-star officer with a two-year tenure drawn by rotation from the three armed forces.

India's Nuclear Command and Control structure

At the apex is Nuclear Command Authority (NCA) chaired by PM. It has a Political andExecutive council. The Executive Council, chaired by the NSA gives the inputs to the PoliticalCouncil, which authorises a nuclear attack when deemed necessary.

The Political Council consiste of Cabinet Committee on Security (CCS),chaired by thePM, and advised by the Executive Council. This mechanism was implemented to ensure thatIndian nukes remain firmly in civilian control and that there exists a sophisticated Command

and Control mechanism to prevent their accidental or unauthorised use.

NCA has control of the countrys estimated 90-110 nuclear warheads. In the event of acrisis, the NCA orders the Strategic Forces Command (SFC) to ready the arsenal andoperationalise its directives.

The SFC is tasked to mate the warheads with air and missile-delivery platforms held bythe three armed forces.

Weak Link

However, the CJSOC position now goes to the senior-most of the three service chiefs, leading to

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changes in just a few months sometimes which, the Naresh Chandra Committee said in itsclassified 2011 report, created a weak link in the command chain.

Committee felt that the CJSOC must not have the operational command of any defence force asduring a nuclear crisis it might become unmanageable for him to command both the SFC and

armed forces.India is unique in this gap among nuclear-weapons States.

A GoM in Vajpayee govt recommended the appointment of a Chief of Defence Staff, a supreme

military office that exists in other nuclear weapons States. The then PM, Atal Bihari Vajpayee,however, shelved the idea after resistance from politicians wary of creating a single-point

military leadership as well as the air force.

1.13INSARIHANT PROPELS INDIA TO ELITE CLUB

Indias first indigenously built nuclear submarine powered by an 83 MW uranium reactor.The submarine is capable of lurking effectively undetectable at depth almost indefinitely, as long

as there is food for its 110-man crew.

INS Arihant will get the nuclear missiles it is designed to carry by early 2015.India will join a club of just six nations with nuclear submarines carrying ballistic missiles. This

would complete Indias Nuclear triad and will provide assured second strike capability.

Nuclear challengeIn March, the DRDO conducted the first test of the K-4 missile capable of delivering a two-tonne nuclear warhead on targets up to 3,000 kilometres away.

K-4 will ensure that the country has what experts call an assured second-strike capability thecapacity to ensure retaliation even if the rest of the arsenal is wiped out in a surprise first-strike.

India plans to operate three nuclear submarines with four K-4 missiles on each.

A doctrinal headache

For more than a decade now, India has kept warheads separate from the missiles that carrythem, in an effort to prevent accidents or unauthorised use. Similar strategy is followed by

Pakistan.In times of crisis like the 2001-02 standoff with Pakistan delivery platforms and warheadshave been brought together, but even then they were not mated or joined together for delivery.

But a nuclear submarine is bound to carry warheads as well as missiles. This raises significantissues of control, which need to be worked out.

Moreover, nuclear submarines can lose contact with their bases and officers must decide ifthis has happened because of technical problems, or because their nation has been obliterated."In 1961, the Soviet submarine B-59 almost fired a 10-kilotonne warhead at the U.S. Flotilla

believing that war had broken out."

1.14TAMIL NADU PRESENTS ITS CASE

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1.15SUMITRA MAHAJAN TO BE ELECTED SPEAKER TODAYVeteran BJP parliamentarian Sumitra Mahajan is all set to be elected the Lok Sabha Speaker unopposedon Friday as no other candidate is in the fray.

From the BJP benches, PM and two senior Cabinet colleagues filed motions proposing Ms. Mahajansname. Leaders of 16 non-BJP parties filed similar motions in her favour. Any member can propose amotion to in writing to the chair

The linguistic diversity of India was in full flow with most members preferring to take oath in their mothertongue. A sizeable number of members, beginning with Ms. Swaraj, opted for Sanskrit, though some

were caught fumbling.

Leader of OppositionWhile the Speaker will decide whether there should be an official Leader of Opposition in the Lok Sabha,following posts are conventionallyleft for the Opposition:

Deputy Speaker of Lok Sabha

Chairman of Public Accounts Committee (PAC)

Chairman of the Standing Committee on Finance

Sources indicated that the BJP would distribute these posts among the prominent Opposition parties,including the Congress, AIADMK, TMC and BJD.

Election Of SpeakerAny member may give notice in writing, addressed to the Secretary-General, of a motion that anothermember be chosen as the Speaker of the House, and the notice shall be seconded by a third member andshall be accompanied by a statement by the member whose name is proposed in the notice that he is

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willing to serve as Speaker, if elected.Provided that a member shall not propose his own name, or seconda motion proposing his own name, or propose or second more than one motion.

Nomination of Panel of ChairmenThe Speaker shall nominate from amongst the members a panel of not more than ten Chairmen, anyoneof whom may preside over the House in the absence of the Speaker and the Deputy Speaker when sorequested by the Speaker or, in his absence, by the Deputy Speaker.

Power of Deputy Speaker or other member presidingThe Deputy Speaker or any other member competent to preside over a sitting of the House under theConstitution or these rules shall, when so presiding, have the same powers as the Speaker when sopresiding.

1.16REPORTS ON RETHINK ON SUBRAMANIUM APPOINTMENTSPECULATIVE:OFFICIAL

For all the details on the issue copying from some other source:

In an unprecedented decision last month, the collegium headed by Chief Justice of India RM

Lodha had suggested names of two previous solicitors general, Gopal Subramaniam and RF

Nariman, to the government for appointment as judges of the Supreme Court.

While this recommendation was awaiting Governments nod, with all the other formalities

fulfilled, Economic Times reported that the Government is now rethinking on the suitability

of Gopal Subramaniams appointment.

Although the Constitution of India provides for appointment through three categories of

persons, namely high court judges, lawyers and academics. However, unlike United

States, the Supreme Court judges in India are seldom appointed from members of the bar.

Usually, a former Chief Justice of a High Court is elevated to the position of a SC judge.

Out of total 210 Supreme Court judges appointment made since 1950, only four appointments

have been done out of the category of High Court judges.

Presently, the appointment of judges to the Supreme Court and the High Court is provided

underArticle 124(2) and Article 217(1)of the Constitution of India, 1950. Under these

provisions, the President of India is required to consult with the Chief Justice of

Indiaand in case of High Court appointments, to consult the Governor and the Chief

Justice of the respective High Court.The Supreme Court in the case of Supreme Court

Advocates-on-Record Association v. Union of India construed the word consultation to be

equal to concurrence.The Advisory Opinion of the Supreme Court in 1998 laid down the

process of appointment, whereby the judiciary through its collegiums consisting of the Chief

Justice and two or four senior judges, would propose names to the President, who then

isboundby the decision of the Collegium. This procedure of appointment in effect, confersupon the judiciary the power to appoint judges of the higher courts.

Hence, senior Supreme Court lawyer and nominated Rajya Sabha member KTS Tulsi was

quoted by ET as saying, The collegium is not known to reconsider its decision in face

of government opposition or disapproval. The government knows that very well.

So the best it can do is not to send back the file and just sit on it. There is no time

limit in which the government has to clear it.

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As amicus curiaein the Sohrabuddin Sheikh encounter case, the former Solicitor-General GopalSubramanium had pointed out several missing links in the charge sheet filed by the GujaratPolice and had strongly recommended a fresh investigation by the Central Bureau of

Investigation.

Calling the State Police investigation a mockery, he had called for a comprehensive probe to the

highest level.

In 2012, the Supreme Court expressed strong reservations against the trial in the encounter

case proceeding in Gujarat. This was after the CBI, which was by then probing the case,appealed to the court for an order to shift the trial outside the State.

Amit Shah, the then State Home Minister, was also accused of playing a key role in theencounter of Sheikh, who was allegedlygunned down by the Gujarat Police on the outskirts of

Ahmedabad in November 2005.

1.17NARMADA DAM TO BE HIGHER BY 17M

In a far-reaching decision, the Narmada Control Authority on Thursday gave its nod to Gujaratfor raising the height of the Narmada dam to the full reservoir level of 138.72 metres from the

present 121.92 metres. The gates will be installed in an open position for now, sources told TheHindu.

The decision was questioned by activists who are concerned about the displacement of people in

the region. Narmada Bachaon Andolan leader Medha Patkar castigated the decision as

political, and called it a breach of every principle of democracy and justice.

1.18NEW NORMS FOR GRANTING MINORTY TAGIn order to grant minority status to primary schools, the State Cabinet decided on Friday to

reduce the total percentage of students belonging to minority community from 75 to 25 forimplementation of the Right to Education in primary education.

1.19APRIME MINISTERIAL FORM OF GOVERNMENTAuthor talks about Prime Ministerial form of government.

A centralised structure of governance in which the leader has a strong control over decision-making

would work best for India. A government headed by a dynamic, efficient and strong Prime Minister

who can wield enormous powers by virtue of his personality, is described as a prime ministerial form

of government.

Comparison with some other countries

In Germany, the powerful position of the Chancellor diminishes the role of the cabinet. The

prime ministerial government in Germany is called the Chancellor Democracy. The Chancellor

answers to Parliament and the ministers answer to him/her. But the Indian Prime Minister is

accountable to Parliament, to the people, and to his/her own party. The American president acts

with the help of advisors, who sometimes overshadow the authority of the ministers.

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At the heart of the Cabinet

Article 74(1) of our Constitution expressly states that the Prime Minister shall be at the headof the Council of Ministers and should aid and advise the President in the exercise of his

functions.The Prime Minister is at the heart of the Cabinet. Under the Westminster model of government,

policy formulation and decisions on important matters are the responsibilities of the ministers.Despite the constitutional provisions of the Westminster model of cabinet government in India,

the Prime Minister is the undisputed chief of the executive.The office of the Prime Minister first originated in England. William Harcourt calls him luna

inter stellas minores or A moon among lesser stars. Dr. Ambedkar had once said that ifany functionary under the Indian Constitution was to be compared with the U.S. President, he is

the Prime Minister and not the President.The twin objectives of the Prime Minster appears to be to grant greater autonomy to the States

and have a centralised structure for governing the Union.InS.R.Bommai vs Union ofIndia(1994), the Supreme Court ruled that the States have an

independent constitutional existence and have as important a role to play in the political, social,educational and cultural life of the people as the Union does.

1.20 DEMOCRATIC CREDENTIALS ON TEST

Issue: Removal of governors appointed by the previous government on regime change.

Until 2010, the predominant notion was that since a Governor holds office at thepleasure of the President, subject to a five-year term, she could be removed at any time and forno reason at the Centres instance. However, inB.P. Singhal vs. Union of India(2010), theSupreme Court ruled that a Governors removal is justiciable and there should be good, validand compelling reasons for such a removal. The power should not be exercised arbitrarily,capriciously or unreasonably.

The view that a new regime can remove a Governor on the ground that she is out of syncwith the policies and ideology of the party in power at the Centre or that the ruling party has lost

confidence in her, has been rejectedby the Supreme Court. For too long, the Governor's office has been used to rehabilitate politicians defeated inelections or as a reward for retired bureaucrats and intelligence officials.

The Sarkaria Commission on Centre-State relations suggested :

1. that a Governor should be someone eminent in some walk of life, one not too intimately

connected with the local politics of the State, and should not be one who has taken too great apart in politics generally, and particularly in the recent past.

2. a politician from the ruling party at the Centre should not be appointed Governor of a Staterun by another party.

1.21CUTTING THROUGH LEGAL CLUTTERIssue: the need for periodic review and removal of outdated laws

Government's initiation: Narendra Modi called for the identification of 10 laws from each

ministry that are burdensome and should be repealed

Importance of the issue:

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>> India has been characterised asone of the most over-regulated countries in the

world.

>> No central databaseof all laws and regulations exists in the country.

>> Burdensome and unnecessary laws and regulations :

1. impose heavy economic costs

2. provide fertile grounds for corruption

3. contribute to the perpetuation ofred-tapismand the classical Indian malaise of the

Inspector Raj.

Author proposes a two step approach:

1. We should realise that this is not just an Indian problem. Other countries have also faced

similar problem and we need to learn from them.

2. Establishment of astatutory nodal body which would:

a.identify laws to be repealed

b. design and implement mandatory process forperiodic evaluation, impact

assessment and coordination of various appeals.

Lessons which can be learnt from other countries:

>> UK's one in, two out rule:

when new regulation which imposes increased costs needs to be introduced, the department has

to remove or alter existing regulations to introduce a saving of two pounds for every pound of

cost imposed. This leads to a formal impact assessment of introducing new regulation and ofremoving/modifying existing ones.

>> Incorporation of sunset and review clauses:

A sunset clause results in the automatic repeal of a law after a specified period of time unless the

law is expressly extended by Parliament.

A review clause mandates formal periodic review, but does not result in automatic repeal. This

review generally determines whether the policy objects of the law are still relevant, and whether

the law still best serves those objectives.

>>biannual Repeal Day' of Australia:

On the first such day in 2014, the Prime Minister introduced omnibus legislation to repeal more

than 10,000 pieces of law and regulation and save over an estimated $700 million (Australian)

in compliance costs, in one stroke. Such initiative requires:

1. Political will

2. Significant coordination

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3. Political backing to handle the opposition.

1.22 GOVT.EASES OUT UPAAPPOINTEESEven as the controversy over the Narendra Modi governments plan to ease out Governors plays

out, the government has sent out signals that it would like the heads and members of various

commissions, committees and other government-constituted groups to make way for its

nominees.

There are several national commissions, councils, committees and groups to which

appointments are made by the government those which exist by virtue of a statute and those

which function under the supervision of the Centre. The National Disaster Management

Authority (NDMA) is a statutory body by virtue of the Disaster Management Act, 2005.

1.23 INDEPENDENCE FROM THE GOVERNMENTA change in the occupancy of 7, Race Course Road, is spelling change in the composition of

statutory bodies in India.

Although meant to function as watchdogs, human rights institutions in India are treated as

subordinate departments with scant regard for their autonomy or statutory character. The

political establishment uses them to accommodate their favourites and this explains the

pressure on members to quit. Such brazen display of power is possible because of a lack of

clear provisions in legislation on selection procedures along with a complete

disregard for procedures for removal of members.In the case of the Commission for

Protection of Child Rights, appointments are increasingly coming under the judicial scanner as

governments have been sluggish in notifying detailed guidelines that can ensure open,

transparent and competitive selections to these important public offices.

In two separate judgments (Association for Development v. Union of India, 2010 and 2013),the Delhi High Court emphasised the need for fair and transparent appointments and urged the

Ministry of Women and Child Development (MWCD) to develop objective evaluation methods

to appoint members to the NCPCR.

After being judicially rebuked thrice, the MWCD amended the NCPCR rules twice this year (in

March and May) to specify eligibility and selection norms. Only Indian nationals who are

graduates from a recognised university, who have no record of conviction or imprisonment for

an offence or have been removed or dismissed from government service, are eligible. Vacancies

have to be advertised in at least four national dailies and also publicised on the Ministrys

website. The Selection Committee is chaired by the Minister-in-charge, with the Secretary of theMinistry and one independent expert nominated by the Minister as members. These provisions

may not entirely check political interference and are marginal steps toward streamlining the

process.

In many States, appointments are being challenged for having been made on political grounds

and this should compel State governments to amend their rules and include selection guidelines

in order to insulate appointments from political interference.

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According to the Paris Principles Relating to Status of National Institutions (1993), which serve

as an international benchmark, independence from the government is one of the most crucial

elements in building effective human rights institutions.

1.24 GUARD AGAINST HASTY REVISIONEditorial argues against diluting provisions of the Land Acquisition Act which was enacted last september

after a long delay. There are demands from the industry to amend the Consent and Compensation

principles enshrined in the act.

Four pillars of the Act:

1) Consent: 80% of the project affected families must agree.

2) Fair Compensation to be decided as per the market rates or circle rates.

3) Social Impact Assessment

4) Compulsory R&R

There are certain exceptions in case of public purpose and national security emergencies.

This act replaced the archaic Land Acquisition Act 1894. Since 1998, attempts were made to change

the Act, but nothing much had come of them. Even the Parliamentary Standing Committee on Rural

Development had in three instances reviewed the proposals for revising the Act and consultedvarious stakeholders.

Author argues that attempts to reduce transparency, deny stakeholder participation and impose

unjust compensation cannot pass for efforts to reduce anomalies and improve the efficiency of the

acquisition process. The government should focus on working with the new Act which was legislatedafter a long delay and debate, and not amend it in haste. The government can review the legislationafter it has been in force for a reasonable period, and after studying its impact carefully.

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1.25MODI GOVT.S FIRST BUDGET ON JULY 10

1.26 SUPPLEMENTING WITHOUT SUPPLANTINGIssue: About 10,000 Indian workers in Iraq of which about 40 have been abducted.

So author ponders upon why so many Indians are trapped there in search of lucrative jobs.

Lucrative jobs propel the youth to go overseas to earn . However, they instead land up as bonded

labourers in the Gulf with no documents and are made to work for a pittance. Most of them have

landed in Iraq from Dubai via Qatar and Kuwait through devious Indian travel agents workingin connivance with employment syndicates operating from Gulf countries.

Emigration Act, 1983

applies only to recruitment and recruiting agents.

Registration and obtaining permits from a State Protector of Emigrants working under aProtector General of Emigrants under the Ministry of Overseas Indian Affairs are essentialunder the Act. Without obtaining any such registration certificate or a valid permit, norecruiting agent or employer can legally send any person abroad. ==> But in reality there are

very few such registered agencies across India

Act does not identifies or defines travel agent or human smuggling.

It neither recognises the proliferating business of human trading, nor does it seek tocheck or punish such activities.

Many claim that they do not need any registration or work permit under the EmigrationAct as they do not recruit people and are therefore not recruiting agents. A travel agent needs noeducational qualification, no experience, no office or business premises and no registration orregulation under any law.

Punjab was the first and only State in the country to enact a law against human smuggling

The Punjab Prevention of Human Smuggling Act, 2012, with supporting rules of 2013 to

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check and curb travel agents illegal and fraudulent activities and penalise those involved in

organised human smuggling rackets.

This law has many noteworthy features

it defines the terms human smuggling and travel agent;

it provides for a licensing regime for travel agents and debars persons from operatingwithout a licence;

it gives power of search, seizure and arrest to magistrates and police officials,

it provides for reasonable compensation to be paid to aggrieved persons by the travelagent.

It also specifies the punishment for offences and authorises courts to decide whether anyillegally acquired property is liable to be confiscated.

Cheating, the Act says, shall have the same meaning as under the Indian Penal Code.

Dishonest misrepresentation with the intention of wrongful gain or deception, cheatingor allurement is punishable under the Act.

If any travel agent wants to advertise or hold seminars, he will have to notify the

competent authority in writing and give complete details of advertisement of seminars. The Act does not include recruitment agents who are governed and registered under theprovision of the Emigration Act.

There is an urgent need for Parliament to pass a law against human smuggling. Piecemeal State

legislations with limited ambit of application will restrict the scope to only State borders. A

Central law is therefore the composite solution.

1.27OBJECTIONS FROM JUDGES FORCE RETHINK ON JUDICIAL

ACCOUNTABILITY BILLUnion Law Minister Ravi Shankar Prasad said that the government was having a rethink on the

Judicial Standards and Accountability Billin view of objections from judges.The Bill, pending in Parliament, seeks to lay down enforceable standards of conduct for judges.

It requires judges to declare details of theirs and their family members assets and liabilities

It creates mechanism to allow any person to complain against judges on grounds ofmisbehaviour or incapacity.

It would set up a National Judicial Commission providing for appointment and transfer ofjudges in the higher judiciary.

When his attention was drawn to a Ghaziabad courts action in summoning Samsung Electronics

Chairman Lee Kun-Hee to appear in a cheating case and asked whether such instances would drive

away investors, Mr. Prasad said the government had asked the Law Commission to examine whether

cases relating to contractual disputes, which were purely civil in nature, could be turned into acriminal case. He said filing of such criminal cases was also affecting investment climate. He

wanted the Commission to make the Arbitration Act more effective to make India a

hub for international arbitration.

He had asked the Chief Justices and the States tofast-track trial relating to women, children

and elderly people. He said another area of concern was pendency of over 22-lakh cheque

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bouncing cases and 18-20 lakh cases before the Motor Accidents Claims Tribunals. He

had asked the Chief Justices of High Courts to suggest measures for speedy disposal of these cases.

1.28 JUDGES LIST:GOPAL SUBRAMANIUM OPTS OUT

The ControversyCollegium headed by CJI recommended names of four candidates for appointment as Judges in

higher judiciary. Government was not in favour of appointing Senior Counsel Gopal Subramanium.

It was anticipated that government would send the file back to the collegium for reconsideration.However, government segregated his name and went on to appoint rest of the names as Supreme

Court Judges. Controversy is regarding legality of this action. Can government overrule therecommendation of the Collegium? Isn't this a breach of Judicial independence?

The validity of the collegium system

The collegium system is one where the Chief Justice of India and a forum of four senior-

most judges of the Supreme Court recommend appointments and transfers of judges. However, it

has no place in the Constitution.

Article 124:Deals with appointment of Supreme Court Judges.

Article 124(2): Judges of SC shall be appointed by President. In case of appointment of judges other

that the CJI, Chief Justice of India shall always be consulted.

The system was evolved through Supreme Court judgments in the Three Judges Cases:

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S.P. Gupta case (December 30, 1981) or the First Judges Case: It declared that the President

is the final authority in appointing the judges and he need not follow the advice of the judges whom

he consults. CONSULTATION IS NOT CONCURRENCE. The ruling gave the Executive primacy over

the Judiciary in judicial appointments for the next 12 years.

Supreme Court Advocates on Record Association versus Union of India or the Second Judges

Case(October 6, 1993): The majority verdict gave back CJIs power over judicial appointments andtransfers. It says the CJI only need to consult two senior-most judges. The role of the CJI is

primal in nature because this being a topic within the judicial family, the Executive cannot have an

equal say in the matter. However, confusion prevails as the CJIs start taking unilateral decisions

without consulting two colleagues. The President is reduced to only an approver.

In Special Reference case of 1998 or the Three Judges Case (October 28, 1998): On a

reference from former President K.R. Narayanan, the Supreme Court lays down that the CJIs

should consult with a plurality of four senior-most Supreme Court judgesto form his

opinion on judicial appointments and transfers.

Senior advocate and former Solicitor-General Gopal Subramanium on Wednesday faulted the Centre

for not following the Memorandum of Procedure in appointment of judges by segregating his name

from the list of four names without the active consent of the Supreme Court collegium. He said thatthe procedure followed by the government in segregating his name was incorrect as the entire file

ought to have been returned to the collegium.

The 1993 judgment also gave primacy to the judiciary over the executive in appointment of judges. It

had reasoned that should the executive have an equal role and be in divergence of many

a proposal, germs of indiscipline would grow in the judiciary.

So, once the collegium reiteratesits recommendation that a particular person has to be appointed

as judge, the government is bound to comply with the collegiums decision as a healthy

convention.

2 PUB AD RELATED

2.1 FOR QUICKER DECISION-MAKINGNews: abolishment of the system of having Empowered Groups of Ministers and Groups ofMinisters.

A press note issued by the Prime Ministers Office said this would empower the Ministries,

expedite decision-making and usher in greater accountability.

The mechanism of EGoMs and GoMs had been created by the first NDA government of Atal

Bihari Vajpayeeto tackle complex policy issues and resolve the clash of interests thatare inevitable in a democracy, more so in a coalition where inter-ministerial turf wars are harder

to resolve. However, under the UPA it oftenbecame an instrument to delay decisions.

While this decision should restore coherence in the functioning of the government, especially asthe BJPs decisive electoral mandate will ensure it is not hampered by difficult coalition

partners, Mr. Modi must guard against administration by fiat. The Congress, citing thePMO press release that has asked all Ministers who have difficulties in deciding issues relating

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to their own Ministry to refer them to the PMO and the Cabinet Secretariat for resolution, has

cautioned thatthis should not lead to an unhealthy centralisation of power and anautocratic regime in the future.An omniscient super-PMO must not destroy the

Cabinet system that envisages decisions through consensus.

2.2 MODI DISSOLVES 4CABINET PANELSThe Prime Minister Narendra Modi dissolved four Standing Committees of the Cabinet.

Cabinet Secretary will handle functions of Committee on Management of Natural

Calamities.

Issues pertaining to following committees will come under Cabinet Committee on EconomicAffairs.

Cabinet Committee on Prices

Cabinet Committee on World Trade Organisation Matters

Cabinet Committee on Unique Identification Authority of India(UIDAI)

The Prime Minister will be re-constituting the Appointments Committee of the Cabinet, the

Cabinet Committee on Economic Affairs, the Cabinet Committee on Parliamentary Affairs, the

Cabinet Committee on Political Affairs and the Cabinet Committee on Security.

2.3 LACK OF REAL TIME DATA TO IMPACT POLICY MAKING

The Statistics Ministry has been left out of the high-priority economic policy group that

includes the Finance and Infrastructure Ministries.

The exclusion of the Statistics Ministry from the economic policy group assumes significance in

view of the challenges lack of reliable data pose to economic policy-making. The importance of

such data is greater given the Governments focus on the economys revival.

The Statistics Ministry oversees the major sources for economic data such as the Central

Statistics Office (CSO) and the National Sample Survey Organisation (NSSO).

Unreliable data on employment

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India does not have reliable data on jobs. Unlike in developed countries such as the United

States where joblessness data comes in every month, the NSSO conducts surveys on

employment only once every five years. For the intervening years, economic policy makers use

the same old data.

Long lagsProblems with economic data include long lags in making baskets truly representative such as in

the case of the wholesale price index (WPI), which does not include services even though the

rises in the cost of health services and education are among the biggest components on

household budgets.

Former Prime Minister Manmohan Singh had appointed several committees for

recommendations on economy data. A committee headed by EAC chairman C. Rangarajan is

expected to submit a report soon on issues pertaining to poverty estimates.

Economic data has to be reliably sourced, accurate and as close to real time as possible for policy

responses to be meaningful and then for validation of outcomes of the policy decisions taken.The Modi government will find it worthwhile to invest in upgrading the data machinery.

2.4 PRICING PUBLIC TRANSPORTIssue: Row over fares of newly inaugurated Mumbai Metro between the State government and

Reliance Infrastructure, the latter holding the majority share in this public-private partnershipproject.

Some details : Just before the service was launched, Reliance Infrastructure steeply revised thefares and increased the range of fares, originally fixed at Rs.9 to Rs.13, to Rs.10 to Rs.40. The

government has opposed this since it is higher than the pre-agreed fare and decided without anyconsultation. Reliance Infrastructure has defended the action, stating that under the Metro

Railways Act it has the authority to fix fares. The increase in the project cost from Rs.2,356 croreto Rs.4,321 crore and higher operational costs had warranted the change, it asserted.

Root cause: Almost every metro rail project in the country has overshot the projected cost.

Companies often tend to underestimate the cost and inflate user-figures to convince fundingagencies that travel by metro rail would be relatively inexpensive. Later, they complain of cost

overruns and demand higher allocations. Ticket prices are then raised and the travelling publicbears the burden of such poor planning.

underestimation of project cost and inflated user-figures ---> project approved ---

> cost overruns ---> ticket prices raised ---> ultimately public bears the burden ofpoor planning

Why the issue is important?

1. Fares should be affordable, particularly to the large number of lower-income group users, andshould factor in the less visible benefits that accrue from the service.

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2. Increasing the use of public transport relieves road congestion, reduces pollution and cuts fuel

consumption.

Some solutions:

1. periodical review of fares, the process should be transparent and fair more so when the

private sector operates public transport.2. Alternative financing options must be explored. Many countries have mobilised funds byimposing additional charges for using private cars, which pollute more and occupy road space

disproportionately.

2.5 LOKPAL IS NO MAGIC BULLETIn a recent poll, 96 per cent of Indians said corruption was holding their country back; 92 per

cent thought it had worsened in the past five years. Most Indians have come to believe that thelaw for the common man does not apply to politicians and the influential.

In this context, all political parties seem to have coalesced around the appointment of a Lokpal,

as if it were the single magic bullet to conquer corruption.

Author argues that Lokpal initiative will by itself not conquer corruption.

India already has a number of institutions of governance that have the mandate and the abilityto deal with corruption. This list includes the Central Bureau of Investigation, the Central

Vigilance Commission, the Comptroller and Auditor General of India, courts, information

commissions, and Lokayuktas at the State level. These established institutions have not beenable to make a dent in corruption.

All these institutions attack those visibly corrupt, but not the three root drivers of corruption.

1. Complex rules and regulations

How it causes corruption?

They burden citizens and are difficult or even impossible to comply with. These provide fertileground for corruption and also encourage the use of nefarious means to fix problems contacts, bribes, etc.

What needs to be done?

Simplifying these rules,

making decision-making processes transparent

giving the government a limited rolewill minimise opportunities for the corrupt.

This can be done using information technology. The Narendra Modi-led government must

accelerate the use of e-services.

2. Enormous power to public officials at different levels

How it causes corruption:

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This, in their minds, reinforces their role as rulers rather than public servants. These powers

combined with the insatiable demands of corrupt political leaders and complex laws andregulations provide them ample opportunities to make personal gains in return for unethical

favours.

What has been done:

Modi government has selected public servants with a relatively clean pastto occupyseveral top positions.

The Prime Minister has also galvanised officials into takingquick decisions withoutfear or favour. Such an ethos will trickle down to lower levels where most interactions withcitizens take place.

However, the government must also protect honest officialsfrom the risk ofharassment by overzealous investigative agencies. The Lokpal should not become such anagency.Ensuring accountability

3. Highly centralised form of government

The more distant the government is from citizens, the more difficult it is to hold the formeraccountable. Contrary to the intent of our founding fathers, India continues to have a highlycentralised form of government. Local governments and institutions enjoy virtually no

autonomy of action. Neither the election process nor the grievance system has successfullyaddressed this problem.

Solutions:

Bringing decision-making closer to citizens (electronically or physically) and balancing itwith adequate empowerment of individuals and community groups to hold decision-makersaccountable

limited and focussed government, decentralisation of powers to local governments and

communities, greater transparency, more right to information and empowerment of citizens andcitizen groups.

Good leadership that is willing to subject itself to public scrutiny will set a good example.

It is not enough if the Modi government establishes the Lokpal. It should address the issues

based on which people are demanding a Lokpal. Merely adding to the strength of investigativeagencies will increase the size of the government but not necessarily improve governance. The

slogan adopted by the Prime Minister and his party, less government and more governance, ison the mark.

2.6 NGOS STANCE ON DEVELOPMENT PROJECTS TO HIT GROWTH

:IBThe IB report Impact of NGOs on Development' :

The opposition to several development projects in the country by a significant number ofnon-governmental organisations (NGOs), including Greenpeace, will have a negative impacton the economic growth by two to three per cent.

NGOs and their international donors are also planning to target many fresh economicdevelopment projects including those in Gujarat.

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The report alleged that the NGOs work for stalling development projects along withagitations against nuclear power plants, uranium mines, coal-fired power plants and hydelprojects.

In a section related to protests against coal mines and coal-fired power projects, thereport alleged Greenpeace expanded its activities to oppose coal-fired power plants and coalmining and received Rs. 45 crore from abroad in the last seven years.

2.7ANSWERING TO LAW,NOT TO CAESARIssue: The recent Intelligence Bureau report on the Concerted efforts of select foreign funded

NGOs to take down Indian development projects casts serious aspersions on some of our best

NGOs and distinguished citizens. The report also alleges that these NGOs would have a negative

impact on GDP growth by 2-3 per cent by stalling, through agitation, development projects such

as nuclear power plants, uranium mines, coal-fired power plants, GMOs, projects by POSCO and

Vedanta, hydel projects, and extractive industries in the north-east.

Authors concern is dysfunctional role of the intelligence services.

In the decades after Independence, successive Prime Ministers turned the Intelligence Bureauinto a kind of private detective service for the government, charging it with surveilling

everything from political opponents to routine economic activity.

The Intelligence Bureau often with little domain competence weighs in on everything from

the appointment of judges to the credentials of business houses.

The Intelligence Bureau is charged with the defence of the republic, not with the defence of the

policies and interests of whoever is in office.

2.8 THE IMPORTANCE OF DISSENT IN DEMOCRACYSome points for NGO issue:

In a democracy, non-governmental organisations provide a platform to civil society todissent in an informed and reasoned manner. They provide a mechanism for the ruled to keep acheck on the rulers.

There are of course NGOs that engage in ill

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