Govt announces radical changes to mapping policy - Pragnya IAS Academy - News Analysis.

Govt announces radical changes to mapping policy.

The changes have been introduced keeping in view the government's vision to make India self-reliant. The government is looking forward to see India emerge as a mapping power.

The Centre on Monday announced sweeping changes to the country's mapping policy, which it said will benefit Indian companies. The changes have been made in the policy keeping in mind the the government's Atmanirbhar Bharat vision.

Announcing this on Twitter, Prime Minister Narendra Modi said the policy change is a massive step in the government's vision to make India self-reliant.

"The reforms will unlock tremendous opportunities for our country’s start-ups, private sector, public sector and research institutions to drive innovations and build scalable solutions. This will also generate employment and accelerate economic growth."

The country's farmers will benefit by leveraging the potential of geo-spatial and remote sensing data. "These reforms demonstrate our commitment to improving ease of doing business in India by deregulation," PM Modi said in another tweet on the matter.

According to radical changes announced by the government, what is readily available globally does not need to be restricted in India and therefore geospatial data that used to be restricted will now be freely available in India, according to Ministry of Science and Technology.

The changes also seek to remove unnecessary red tape and obstacles in innovation.

"The existing regime imposed significant restrictions on the mapping industry - from creation to dissemination of maps, requiring Indian companies to seek licenses, follow a cumbersome system of pre-approvals and permissions. Compliance with these regulatory restrictions has subjected startups in India to unnecessary red tape, hindering Indian innovation in map technologies for decades," Ministry of Science and Technology said in a release.

"Our corporations and innovators are no longer subject to restrictions nor do they require prior approvals before they collect, generate, prepare, disseminate, store, publish, update digital Geospatial Data and Maps within the territory of India," it added.

The ministry also said that the government is looking forward to see India emerge as a mapping power. (Source: Hindustantimes)

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Govt announces radical changes to mapping policy.

Govt declares entire Nagaland 'disturbed area' for six months - Pragnya IAS Academy - News Analysis.

Govt declares entire Nagaland 'disturbed area' for six months.

The government on Wednesday declared the entire state of Nagaland a "disturbed area" for six months under the Armed Forces (Special Powers) Act.

The government on Wednesday declared the entire state of Nagaland a "disturbed area" for six months under the Armed Forces (Special Powers) Act.

Nagaland has been under the coverage of the AFSPA for almost six decades and it was not withdrawn even after a framework agreement was signed on August 3, 2015, by Naga insurgent group National Socialist Council of Nagaland (Isak Muivah) General Secretary Thiungaleng Muivah and government interlocutor RN Ravi in the presence of Prime Minister Narendra Modi.

The decision to maintain the status quo in Nagaland regarding coverage of AFSPA, a law slammed by many civil society groups as “draconian”, came amidst reports of deteriorating law and order situation there. The AFSPA gives the armed forces sweeping powers to search and arrest, and to open fire if they deem it necessary for “the maintenance of public order”.

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In bid to improve smart cities, govt to pair laggards with top performers - Pragnya IAS Academy - News Analysis.

In bid to improve smart cities, govt to pair laggards with top performers.

Urban Affairs Secretary Durga Shankar Mishra said, "There are cities that are performing very well but many are laggards. The idea is to build a sister city relationship between the top 20 and bottom 20."

At least 20 smart cities that are lagging behind in project implementation will be paired with top performers to provide a framework to improve their performance.

Speaking at the third apex conference of smart cities, Housing and Urban Affairs Secretary Durga Shankar Mishra said, “There are cities that are performing very well but many are laggards. The idea is to build a sister city relationship between the top 20 and bottom 20.”
The ministry had selected the first set of smart cities in January 2016. This includes Surat, Ahmedabad and Visakhapatnam.
According to ministry officials, the top performers include these three, along with Ranchi, Indore, Bhopal, Pune, Vellore, Nashik and Kanpur.
“Some are growing faster, some slower… We can team them up. We see that within the same state, some are doing well and some aren’t. We will work out the modalities and create a platform to facilitate exchange,” Mishra said.
Smart Cities Mission Director Kunal Kumar said that one key aspect while pairing cities will be relatability. ”Relatability will be key. For example, there is no sense in pairing a city with water surplus with one that is water scarce. This will be analysed before the two start to collaborate,” he said.
Under the Smart Cities project, at least one city was selected from each state and Union Territory. While 20 were selected in the first phase, the number stands at 100 now, with the last set selected in 2018. Officials said that many of those lagging behind are those which joined the framework last.
Mishra said that smart cities have to be like lighthouses.
“They are the beginning of what Indian cities will be like. Smart solutions in water, education and mobility have to be replicated in other places. The 100 smart cities are models to be replicated,” he said.


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CAA: After Kerala, Punjab Govt will seek House rejection today - Pragnya IAS Academy - News Analysis.

CAA: After Kerala, Punjab Govt will seek House rejection today.

Punjab’s move Friday will coincide with a meeting called in New Delhi by the Union Home Ministry to discuss modalities for the Census 2020 and NPR. It will be attended by Chief Secretaries and Census Directors of all states. Opposition parties say the NPR is a “prelude” to the NRC.

Congress-ruled Punjab will become the second state after Kerala to bring in an Assembly resolution Friday seeking the repeal of the Citizenship (Amendment) Act. The state government will also seek amendment to the form of the National Population Register (NPR) to allay fears in certain quarters regarding the NPR and National Register of Citizens (NRC).
In Chhattisgarh, another Congress-ruled state, the government is considering if it can denotify an October 2019 order which announced the state’s participation in the NPR exercise.
This move by the Congress governments in the states comes days after the Opposition parties urged Chief Ministers to demand the scrapping of the CAA, suspend the NPR exercise and reject the proposed NRC process.
Punjab’s move Friday will coincide with a meeting called in New Delhi by the Union Home Ministry to discuss modalities for the Census 2020 and NPR. It will be attended by Chief Secretaries and Census Directors of all states. Opposition parties say the NPR is a “prelude” to the NRC.
The draft resolution prepared by Punjab states that the CAA has caused “countrywide anguish” and “social unrest with widespread protests” across the country. The state of Punjab, it says, also witnessed peaceful protests by “all segments of our society”.
The CAA, the draft says, seeks to negate the very secular fabric on which the Constitution of India is based, that it is divisive and stands for everything opposed to a free and fair democracy which must enshrine equality for all.
“Alongside the religion-based discrimination in granting citizenship, it is apprehended that the CAA is also likely to endanger the linguistic and cultural identity of some sections of our people. CAA also envisages cancellation of registration of overseas citizens of India card holders if they violate any law,” it says.
The resolution also says the CAA is aimed at distinguishing illegal migrants on the basis of religion, which is not permissible under the Constitution. “It is also violative of Article 14 of the Constitution, which guarantees the right to equality and equal protection of the laws to all persons,” it says.
Punjab Chief Minister Amarinder Singh, responding to a query Thursday on whether his government will bring a resolution in the Assembly against the CAA, said: “Wait till tomorrow.”
On Tuesday, his government had announced that it will proceed according to the “will of the House” on the issue of CAA, NPR and NCR.
The Punjab cabinet had agreed with the Chief Minister’s view that the CAA, especially when coupled with NRC and NPR, was violative of the Preamble. Advocate General Atul Nanda, an official statement said, also presented the legal perspective on the matter before the Council of Ministers.
Last week, the Chief Minister had opposed the CAA, and had supported the Kerala Assembly resolution. In a statement, he had said that as far as his government was concerned, there was no way it would allow the divisive Act to be implemented in Punjab. “You cannot force us to do so,” he said. (Source: The Indian Express)


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Govt should ensure adequate funds for immunization programmes - Intensified Mission Indradhanush (IMI) 2.0 - Pragnya IAS Academy - News Analysis.

Govt should ensure adequate funds for immunization programmes - Intensified Mission Indradhanush (IMI) 2.0.

• Immunization is considered the backbone of the health system
• In addition to saving lives, vaccination can free families from catastrophic health spending and lost earnings by preventing illness and the need for treatment

India begins 2020 on an ambitious note. In December 2019, the government launched the Intensified Mission Indradhanush (IMI) 2.0, a programme that seeks to escalate efforts to achieve the goal of attaining 90% national immunization coverage between December 2019 and March 2020.
Immunization is considered the backbone of the health system. It is an extraordinary public health investment that can provide tremendous economic and social gains by reducing mortality, preventing illnesses, and protecting individuals from catastrophic treatment expenditures. In addition to saving lives, vaccination can free families from catastrophic health spending and lost earnings by preventing illness and the need for treatment. In India, where almost 65% of health spending is paid out-of-pocket, vaccines can protect families from being pushed into poverty because of the catastrophic treatment costs.
With a target cohort of approximately 26 million children and 30 million pregnant women, India’s Universal Immunization Programme is one of the largest public health programmes in the world. Over the years, India has strengthened its capacity to immunize its children. Since 2011, seven new vaccines have been introduced into the programme. More and more vaccines are now manufactured indigenously, making the programme more viable and the nation self-sufficient.
With the aim to improve coverage, the government launched Mission Indradhanush in 2014. Over 30 million children have been vaccinated up to March 2019. The initiative has been followed up by two iterations of IMI to close coverage gaps and improve health equity. India dedicates significant funds to protect its children from vaccine preventable diseases.
In 2013-14, India spent ₹4,247 crore on the UIP, and this increased by 6% to ₹4,502 crore in 2015-16. In 2017-18, India spent ₹ 6,864 crore on its immunization programme. This amount predominantly included vaccine costs and costs of shared personnel, which refers to those workers who are not fully employed on the immunization programme, but dedicate a share of their time to it.
While the Indian government has been providing a large share of this funding for the UIP, our country has been fortunate to receive support from global partners, such as Gavi, the Vaccine Alliance, which have provided catalytic funding, particularly to help accelerate the introduction of new vaccines. India has been eligible for and receiving Gavi support since 2000, but this support is scheduled to phase out within the next two years. India is in the accelerated transition phase and is currently projected to transition to fully self-financing in 2021. It will be fully funding its vaccination programme from 2022, despite an estimated 80% increase in the cost of the programme by 2022 as compared to 2017. Two years from now, it will need to spend ₹ 12,364 crore on vaccines and shared personnel costs. As the vision of the country’s immunization programme expands, the government should ensure adequate allocations for the programme to be able to sustain and build on the gains of the immunization efforts so far. (Source: Livemint)


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Govt plans to cut spending to curb fiscal deficit - Pragnya IAS Academy - News Analysis.

Govt plans to cut spending to curb fiscal deficit.

• Govt has spent about 65% of the total expenditure target of 27.86 trillion rupees till November
• Lack of demand and weak corporate earnings growth in the economy led to lagging tax collections this year
India's government is likely to cut spending for the current fiscal year by as much as 2 trillion Indian rupees as it faces one of the biggest tax shortfalls in recent years, three government sources said.
Asia's third largest economy, which is growing at its slowest pace in over six years because of lack of private investment, could be hurt further if the government cuts spending.
But with a revenue shortfall of about 2.5 trillion rupees, the government has little choice to keep its deficit within "acceptable limits", the first official, who did not want to be named, told Reuters.

The government has spent about 65% of the total expenditure target of 27.86 trillion rupees till November but reduced the pace of spending in October and November, according to government data. A 2 trillion-rupee reduction would be about a 7% cut in total spending planned for the year.
In October and November, government spending increased by 1.6 trillion rupees, nearly half the 3.1 trillion it spent in September. The fiscal year starts April 1 and ends March 31.
Lack of demand and weak corporate earnings growth in the economy led to lagging tax collections this year. Analysts said growth will be hurt.
"When the private investment has slowed so much, this will definitely drag down growth further," said Rupa Rege Nitusure, chief economist at L&T Financial.
India's economic growth slowed for six consecutive quarters to 4.5% in July-September, despite a 135-basis-point cut in interest rates by the central bank since February 2019.
Now, even the Reserve Bank of India seems to have become more worried about inflation rising. It kept its key lending rate on hold on December 5, even though it slashed its growth forecast for the current fiscal to 5%, which would be the lowest in a decade.
Even a surprise corporate tax rate cut announced by Finance Minister Nirmala Sitharaman earlier this year failed to spur private investment in the economy.
The government is likely to keep the fiscal deficit under 3.8% of gross domestic product, sources said, while letting it slip from its earlier set target of 3.3% for the year.
The government is likely to announce additional borrowing of 300 billion to 500 billion rupees for the current year to match the revised fiscal deficit, two sources in the government said. (Source: Livemint)


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Govt. aims to provide broadband access to all villages by 2022 - Pragnya IAS Academy - News Analysis.

Govt. aims to provide broadband access to all villages by 2022.

The mission envisages stakeholder investment of $100 billion (₹7 lakh crore), including ₹70,000 crore from Universal Service Obligation Fund in coming years

The government on Tuesday announced a new ‘mission’ aimed at providing broadband access in all villages in the country by 2022, entailing investments of around ₹7 lakh crore from various stakeholders.
“The National Broadband Mission will facilitate universal and equitable access to broadband services across the country, especially in rural and remote areas,” Telecom and IT Minister Ravi Shankar Prasad said, adding that it will also aim at significantly improving quality of services for mobile and internet.
Under the mission, the government plans to lay incremental 30 lakh route km of Optical Fiber Cable, while also increasing tower density from 0.42 to 1 tower per thousand of population by 2024.’
The mission envisages stakeholder investment of $100 billion (₹7 lakh crore), including ₹70,000 crore from Universal Service Obligation Fund (USOF) in coming years and “address policy and regulatory changes required to accelerate the expansion and creation of digital infrastructure and services”.
“The vision of the national broadband mission is to fast-track growth of digital communications infrastructure, bridge the digital divide, facilitate digital empowerment and inclusion, and provide affordable and universal access of broadband for all,” an official statement said.
Under the mission, the Centre will work with States and UTs for having consistent policies pertaining to expansion of digital infrastructure including for Right of Way (RoW) approvals required for laying of optical fibre cable.
Additionally, a Broadband Readiness Index will be developed to measure the availability of digital communications infrastructure within a State/UT. (Source: The Hindu)


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Govt notifies rules under insolvency law for resolution of fin service providers - Pragnya IAS Academy - News Analysis.

Govt notifies rules under insolvency law for resolution of fin service providers.

• The corporate affairs ministry has notified the Insolvency and Bankruptcy Rules, 2019,
• It will provide a generic framework for insolvency and liquidation proceedings of systemically important Financial Service Providers (FSPs) other than banks
The government on Friday notified rules under the insolvency law to deal with resolution of financial service providers, excluding banks.

The corporate affairs ministry has notified the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019 (Rules).
It will provide a generic framework for insolvency and liquidation proceedings of systemically important Financial Service Providers (FSPs) other than banks, an official statement said.
"The special framework provided under Section 227 of the Code for financial service providers is essentially aimed at serving as an interim mechanism to deal with any exigency pending introduction of a full-fledged enactment to deal with financial resolution of banks and other systemically important financial service providers," it said.
The move also comes against the backdrop of instances of various FSPs facing problems. (Source: Livemint)


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Govt suggests 9-hour working day, but avoids fixing a minimum wage in draft rule - Pragnya IAS Academy - News Analysis.

Govt suggests 9-hour working day, but avoids fixing a minimum wage in draft rule.

• The number of hours which shall constitute a normal working day…shall be of nine hours, said the draft rules now available in public domain for comments
• The draft rule also said HRA will be 10% of the minimum wage but will not classify whether it will be based on the category of the cities people live in
The Indian government has suggested a nine-hour normal working day in its draft wage code rules, but has stayed away from fixing a national minimum wage. The draft reiterates most of the old rules except suggesting three geographical classifications for deciding wages in future.

“The number of hours which shall constitute a normal working day…shall be of nine hours," said the draft rules now up for public comments.
However, the draft rule creates ambiguity while underlining that eight hours of daily work will be calculated for 26 days of work in a month for fixing monthly salary, an existing rule for decades.
“Some factories are already pushing people to do nine-hour normal workday. What these wage code rule is trying to achieve is institutionalise it for all. We have opposed the wage code and we shall oppose the rule because they are not talking about workers welfare," said A.K. Padmanabhan, vice president of Centre for Indian Trade Union.
Like the Labour Code on Wages, the draft rule on wages is still silent on spelling out a minimum wage. It says experts committees will suggest the central government in future. An internal panel of the Union labour ministry had said in its report in January that “the single value of the national minimum wage for India should be set at Rs. 375 per day as of July 2018". In addition to the minimum monthly wage of Rs.9,750, the seven-member panel had also suggested that a housing allowance of Rs. 1,430 should be provided for city-based workers.
C.K. Saji Narayanan, president of the RSS affiliate Bharatiya Mazdoor Sangh (BMS) said 70 years after independence “the country is still talking about floor wage which is even below the minimum wage. There has to be three classification of wage: minimum wage, fair wage and living wage. in 2019 we should have spoken about living wage for better living standards. The wage code rule lacks vision for a new India. We shall oppose it". Narayanan says he favours six hour work day instead of an eight hour or nine hour work day.
The draft also suggests that the floor wage will be revised every five years or less. To be sure, the draft rule will be finalized in December after it receives public comments for a month.
Besides, the draft rules says that while deciding the minimum wage the country will be divided into three geographic categories -- metropolitan area having population of 40 lakhs or more, non-metropolitan area having a population of between 10 lakhs to 40 lakhs and rural areas. The draft rule says house rent will be 10% of the minimum wage but does not classify whether it will be higher based on the category of the cities people live. As economic migration –from rural to urban areas is an increasing reality in India, housing rent at 10% of food and clothing expenditure does not reflect the present day realities.
The draft rule also says that expenditure on fuel, electricity and other miscellaneous items will constitute 20% of minimum wage, an existing rule.
Besides, the draft rule says while calculating wage, an intake of 2,700 calories per day, 66 meters clothe per annum for a standard family will be taken into account. All these are part of the minimum wage calculation first done in 1957.
The standard family consumption has been defined as three units – the working member as one, the spouse (0.8 unit) and two children (0.6 unit each). This is however, is a deviation from what its internal committee had suggested earlier this year – to increase the consumption unit to 3.6 instead of three. “We have told labour ministry earlier during discussion phase that they must calculate minimum wage based on six units - worker, spouse, two kids and parents," Narayanan said. (Source: Livemint)


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Govt set to make BIS standard must for tap water in select cities - Pragnya IAS Academy - News Analysis.

Govt set to make BIS standard must for tap water in select cities.

A BIS team has already been sent to the state capitals to collect the samples of tap water and test if they comply with the BIS quality standard.

The Centre will soon start consultation process to make mandatory compliance of the BIS quality standard for tap water to begin with in the national capital, state capitals and 100 smart cities, Consumer Affairs Minister Ram Vilas Paswan said on Thursday.
The Delhi government and Jal Board authorities have no reservations on making the BIS standard mandatory for tap water, he said.
A preliminary investigation of tap water samples collected randomly from 11 areas in the national capital has showed that water did not conform with the BIS standard and was not safe for drinking, he added.
The Bureau of Indian Standards (BIS), the national body that frames quality norms for products and services and works under the Ministry of Consumer Affairs, has set standards for the drinking water but are voluntary in nature.
"After looking at the preliminary report of tap water supplied in Delhi, we are thinking of making mandatory the BIS standards on tap water at least in the national capital, state capitals and 100 smart cities," Paswan told reporters.
The stakeholders' views will be taken on the issue. A letter will be issued to the state governments seeking their views on the matter, he said.
Already, a BIS team has been sent to the state capitals to collect the samples of tap water and test if they comply with the BIS quality standard, he said.
"This will take a month. The report will come by November first week. We will get to know which state supplies safe drinking water at least in the capital city. The ranking will be given," the minister added.
With regard to quality of tap water in Delhi, Paswan said the preliminary investigation shows that samples collected randomly from 11 areas in the national capital do not comply with the BIS standard and not safe for drinking.
"We have received second lab report. We will share in detail about the samples after we get the final lab report," he said adding that the samples include water collected from his house (10, Janpath) and the office in Krishi Bhawan.
The lab report was discussed in a meeting with senior officials of the Delhi Jal Board (DJB), New Delhi Municipal Corporation (NDMC), BIS, Union Jal Shakti and the Food Safety and Standards Authority of India (FSSAI), he said.
"In the meeting, DJB officials informed that they don't have any reservation if BIS standard on piped water is made mandatory. They said have infrastructure to supply quality water," Paswan said.
After seeking views of the stakeholders, the Centre will figure out the way to make the BIS standard mandatory. "It cannot be done across the country at one go, we will go step by step," he added.
Paswan also mentioned that India's BIS standard on tap water is not at par with the international standard and directed the BIS officials to study if it can match the global quality norms.
Currently, the BIS quality standards are mandatory for only packed drinking water and 140-odd other products. The Centre can make it mandatory for any product or service keeping in view health of the larger public of the country.
Besides state governments, the views of the concerned Union ministries -- Health, Jal Shakti and Urban Development -- have to be taken for making BIS standard mandatory for tap water. (Source: The Business Standard)


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Govt. cuts corporate tax to spur investment, jobs - Pragnya IAS Academy - News Analysis.

Govt. cuts corporate tax to spur investment, jobs.

Finance Minister Nirmala Sitharaman unveils slew of measures including a cut in the Minimum Alternate Tax for all businesses.

In its boldest gambit yet to stir up the economy, the government on Friday issued an ordinance to reduce the corporate tax rate for domestic firms and new manufacturing units by 10 to 12 percentage points, effectively bringing India’s tax rates on par with its competing Asian peers.
Finance Minister Nirmala Sitharaman said that the effective tax rate for domestic corporates, inclusive of surcharges, will fall from 34.94% to 25.17% if they stop availing any other tax sops. For new manufacturing firms set up after October 1, 2019 and commencing operations by March 31, 2023, the effective tax rate will fall from 29.1% to 17%.
The slew of measures unveiled by Finance Minister Nirmala Sitharaman, including a rollback of the enhanced surcharge levied on foreign portfolio investors in the Budget, and a reduction in the Minimum Alternate Tax (MAT) rate from 18.5% to 15% for all businesses, is estimated to cost the exchequer ₹1,45,000 crore a year in terms of revenue foregone.
Ms. Sitharaman said she was conscious of the impact of the package on the government’s fiscal arithmetic and the 3.3% fiscal deficit target for the year, but the government was betting on “more investments leading to more jobs and economic activity that would shore up revenues.”
“Today, we propose to slash the corporate tax rates for domestic companies and also for new manufacturing companies. We have issued an ordinance to amend the Income Tax Act of 1961 and the Finance Act of 2019,” she said.
“In order to promote growth and investment, a new provision has been inserted in the Income Tax law to allow any domestic company to pay income tax at the rate of 22% (from 30%), subject to the condition that they won't avail any other (tax) incentives or exemptions. There will be no MAT levied on them and the effective tax rate for such firms will be 25.17%, including all surcharges and cess,” the Finance Minister said.
To spur fresh investments and boost Make in India efforts, for new manufacturing companies incorporated after October 1, 2019 and commencing production by March 31, 2023, the income tax rate will be 15% from 25% at present. The effective tax rate for these companies will be 17.01%, compared to 29.1% at present. These firms will also be exempt from MAT.
“In order to provide relief to firms who want to continue with the existing regime of exemptions, we are giving some MAT relief – the tax rate has been reduced from 18.5% to 15%,” the Minister said.
These tax cuts include a reduction in the surcharge on corporate income tax from 12% to 10%, pointed out Revenue Secretary Ajay Bhushan Pandey, stressing that the effective rate for MAT would also fall sharply. “The MAT rate of 18.5% along with surcharges used to be around 21% or 22%. Now that basic MAT rate has been reduced to 15%, and once you add up the surcharges, that comes to around 17% in the new regime,” he said.
Lowest in South East Asia
The Finance Minister said that following these changes, India is at par and comparable with the lowest tax rates in South East Asian countries.
“In the face of global headwinds, this puts India right up on the map as a forward looking, business friendly and competitive operating environment,” said Naveen Aggarwal, partner and chief operating officer, Tax, KPMG in India
Firms currently availing income tax exemptions and incentives can opt for the new concessional tax regime with a headline tax rate of 22% after the expiry of their existing tax holidays or exemption periods. “This option, once exercised, cannot be withdrawn, so as to ensure there are no flip-flops,” Ms. Sitharaman said.
The Minister said that foreign investors could also avail of the new tax rates, provided they had an establishment in the country or were investing equity into an Indian firm.
Responding to concerns about the impact of the foregone revenue on the Centre’s fiscal deficit target of 3.3% of the GDP for 2019-20, Ms. Sitharaman said: “We are conscious of the impact this will have. We will be taking all concerns on board to reconcile how the situation is now and how to take it forward,” and stressed that economic buoyancy “itself will generate more revenue generation through higher incomes and the tax basket would widen.’
The larger idea behind the exercise, the Minister said, was to eventually phase out all exemptions and incentives. On the other hand, surcharges on income tax would be eased out too, she hinted, in response to a query.


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Direct Tax Code: All you need to know about govt panel's recommendations - Pragnya IAS Academy - News Analysis.

Direct Tax Code: All you need to know about govt panel's recommendations.

The committee has highlighted the need to review existing tax brackets, surcharges and implementation of special guidelines for startups. Concessions have also been suggested for middle-income taxpayers.

HIGHLIGHTS
• Panel has recommended further reduction in corporate tax rates
• It has also chalked provisions to ease burden on middle-income taxpayers
• The government will make the report public after going through the details
The high-level government task force on direct taxes, which was appointed to review the existing 58-year-old Income Tax Act, is believed to have proposed several changes that could reduce the taxation burden for several companies and individuals taxpayers.
The eight-member government panel, headed by Central Board of Direct Taxes (CBDT) member Akhilesh Ranjan, submitted its report on the new Direct Tax Code (DTC) on Monday. The government, however, is yet to make the report public.
While not many details about the report have emerged, the committee has highlighted the need to review existing tax brackets, surcharges and implementation of special guidelines for startups.
The committee's suggestions could make the existing Income Tax Act friendlier and even reduce the burden for middle-income group taxpayers.
Further pruning of corporate tax, which is a major hindrance for companies, could be another recommendation that has been mentioned in the committee's report.
Finance Minister Nirmala Sitharaman on Monday even indicated that the corporate tax rate for companies, earning over Rs 400 crore, will be gradually cut to 25 per cent.
For individual taxpayers
One of the main objectives of the committee was to make the I-T Act simpler, with focus on easing the burden on individuals and companies as acute slowdown continues to erode economic growth.
The committee's report is believed to shed light on two core aspects. The primary focus is on simplifying tax brackets to provide relief to middle-income taxpayers while removing any excess surcharges that add to the woes of taxpayers.
If such proposals come into effect, individual taxpayers may see their overall tax burden reduce.
For corporates
The report is also expected to focus on promoting ease of doing business by suggesting a common tax rate for domestic and foreign companies. The committee may have proposed a special set of provisions for startups, which are worst-affected when it comes to taxation.
Among other things, the committee is expected to recommend the government to further reduce the tax burden on companies, considering the sharp slump in output.
It is likely that the committee recommended the government to further reduce the 25 per cent tax rate for companies earning up to Rs 400 crore.
The report will be made public only after the finance ministry evaluates it properly. But indications are strong that the new tax code will make the lives of individual taxpayers and companies significantly easier. (Source: Indiatoday)


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Govt plans introducing artificial intelligence system in MCA 21 portal - Pragnya IAS Academy - News Analysis.

Govt plans introducing artificial intelligence system in MCA 21 portal.

MCA 21 is the electronic backbone for the dissemination of information to all stakeholders, including the regulator, corporates and investors.

Corporate affairs ministry plans to introduce artificial intelligence system in the MCA 21 portal as it seeks to make compliance process easier as well as ensure routine enforcement activities are done round-the-clock on autopilot basis.
MCA 21 is the electronic backbone for the dissemination of information to all stakeholders, including the regulator, corporates and investors. All filings under the companies law are submitted to the ministry through this portal.
Corporate Affairs Secretary Injeti Srinivas has said the ministry would look to "introduce Artificial Intelligence in MCA 21 when version 3 of the portal is rolled out in about a year's time".

It will look to rationalise all the forms, follow the principle of a single source of truth so that one is not required to fill in known details again (as it will get filled automatically) and also interlink databases, so that routine enforcement is done 24x7 on autopilot basis," he said.
In the ministry's monthly newsletter, Srinivas also said that MCA 21 allows electronic filings of various documents under Companies Act, 2013 and has fully automated all processes related to enforcement and compliance monitoring under the Act.
Earlier this year, the ministry sought applications from service providers to develop as well as operate the upgraded version of MCA 21 system.
MCA 21 system was started in 2006. The first phase of the e-governance initiative of the ministry was implemented by Tata Consultancy Services and the second phase is being implemented by Infosys for the period from January 2013-July 2021. (Source: Livemint)


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Govt has to frame schemes; courts should stay out of governance, says Supreme Court - Pragnya IAS Academy - News Analysis.

Govt has to frame schemes; courts should stay out of governance, says Supreme Court.

Such directions to the government to “consider” framing a scheme should be with regard to the facts and circumstances of each case.

It is the sole prerogative of the government to frame schemes, courts should stay out of governance, the Supreme Court has said in a judgment.
A Bench led by Justice A.M. Sapre criticised the Uttarakhand High Court for framing a scheme to regularise hundreds of casual workers engaged by the Border Roads Organisation (BRO) under the Ministry of Defence in the construction of roads for going to pilgrimage of Char Dham Yatra.

“The High Court failed to see that it is not the function of the courts to frame any scheme but it is the sole prerogative of the government to do it… All the High Court, in exercise of its extraordinary power under Article 226 of the Constitution, can do is to direct the government to consider for framing an appropriate scheme,” Justice Sapre, who wrote the judgment for the Bench, observed in the judgment dated March 15.
Such directions to the government to “consider” framing a scheme should be with regard to the facts and circumstances of each case.
“It is only in exceptional cases when the court considers it proper to issue appropriate mandatory directions,” Supreme Court held.
Instead, in the present, a Single Judge of the High Court framed “a scheme itself to regularise the services of the casual paid labourers and granted them the benefits similar to those of the regular employees under the labour law.”
When the Centre appealed to the Division Bench, the latter dismissed the appeal and went a step further to direct the government to frame a scheme to provide specific facilities to the workers.
The case was filed in the High Court by trade unions representing the casual workers, including the All India Trade Union Congress. It was their case that the Centre had regularised these labourers though they had been working for the BRO for years together.
They argued that the workers were neither paid regular salary/perks/facilities nor given any protection due to a government employee.
In its judgment, the court recorded that the government has “now framed a welfare scheme for all such casual workers” during the pendency of the case. (Source: The Hindu)


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Govt proposes national green aviation policy - Pragnya IAS Academy - News Analysis.

Govt proposes national green aviation policy.

• India is one of the fastest growing domestic aviation markets
• In a white paper on 'National Green Aviation Policy' that has been put up for public comments
The civil aviation ministry will create a simplified regulatory regime to speed up clearances for airport development and other aviation projects while taking due care of environment sustainability, according to a white paper.
In a white paper on 'National Green Aviation Policy' that has been put up for public comments, the ministry said aviation regulator DGCA would work with other government agencies for making bio-jet fuels commercially viable.
Besides, the watchdog would assess and understand emissions from all aviation related sources, their contribution to the local air quality and their effect on compliance with local air quality regulations, as per the paper.

According to the paper, the ministry would create a "favourable regulatory regime for clearances of aviation projects such as new airports development and expansion".
There would be a special provision and timelines that would be worked out in collaboration with central and state government bodies, environment ministry, pollution control boards and the DGCA to speed up the developmental activities with due care environment sustainability, it added.
India is one of the fastest growing domestic aviation markets and is projected to become the the world's third largest air passenger market in 10 years.
As part of the proposed green aviation policy, the DGCA would assess and understand emissions from all aviation related sources and their contribution to the local air quality.
"DGCA will work with aviation stakeholders and other government authorities with framework to adopt measures to reduce emissions in all areas -- aircraft, ground support, airport infrastructure and landside access traffic," it added.
Among others, airports would adopt local air quality monitoring system and programs to monitoring the air quality around airport.
The paper noted that the DGCA would work with other government agencies including petroleum and natural gas ministry as well as private agencies for ensuring availability of bio-jet fuels for aircraft use which is commercially viable.
All aviation stakeholders shall also explore the possibilities of use of bio-fuel and other alternate fuels with lower emissions for ground vehicle application," it added.
Further, the paper noted that the stakeholders would work closely with government agencies, local bodies for effective waste management around the airport to ensure reduced bird hazards and safe airport operation.
A centre of excellence for green aviation has also been proposed, that would focus on identifying environment friendly solutions, research, competency and skill developments and aviation programmes, among others.(Source: Livemint)


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How govt expenditure has pushed up India's GDP growth - Pragnya IAS Academy - News Analysis

How govt expenditure has pushed up India's GDP growth.

• India's GDP is likely to grow at 6.98% in 2018-19 in a year when government expenditure is seen increasing by 8.87%
• Government expediture grew more than GDP between 2007-08 and 2009-10—the peak of the financial crisis
The second advance estimates of national income show that gross domestic product (GDP) is likely to grow at 6.98% in 2018-19. This is the slowest growth in five years, and even this wouldn’t have been possible without fast growth in government expenditure. Mint decodes the situation.

How fast is government expenditure growing?
At the most basic level, GDP of an economy is the sum of private consumption expenditure, investment, government expenditure and net exports (exports minus imports). An increase in any of these pushes up GDP.
Take a look at the above chart. The government expenditure for this fiscal is expected to grow at 8.87%, whereas GDP is likely to grow at 6.98%. In 2017-18, government expenditure grew at 14.97%, while GDP grew at 7.17%. So, an increase in government expenditure basically pumped up GDP growth to a large extent in 2017-18 and to some extent in 2018-19.
When was the last time this happened?
The last time growth in government expenditure was faster than overall GDP growth for two consecutive years or more was between 2007-08 and 2009-10. This was the period before, during and after the breakout of the 2008 financial crisis, when Wall Street investment bank Lehman Brothers went bust, leading to a global economic slowdown. In 2008-09, overall GDP growth was 3.09%, whereas growth in government expenditure was 11.36%. Of course, 2017-18 and 2018-19 have been nothing like the global financial crisis years, but economic growth has still required a major push from the government.
What proportion of GDP does government expenditure constitute?
Government expenditure does not make up for a large part of GDP. Data over the years suggests that it typically accounts for 10-11% of GDP.
How fast is the non-government part of GDP growing?
The non-government part of GDP constitutes around 90%. In the current fiscal, it is expected to grow by 6.76%; in 2017-18, it grew at a rate of 6.32%. The last time the non-government part of the economy grew slower than the overall GDP for two consecutive years or more was between 2007-08 and 2009-10, that is, during the period of the financial crisis. This is another good indicator of the fact that all has not been well with the Indian economy for the last two years.
Why is the rise in government expenditure not pushing up fiscal deficit?
This is because a lot of revenue, as well as capital expenditure of the government, is now kept outside its budget. The Comptroller and Auditor General (CAG) highlighted this in a report. This style of pushing up growth by raising government expenditure is not sustainable. In 2017-18, government expenditure went up 14.97%, while GDP growth was at 7.17%. In 2018-19, it is likely to rise to 8.87% and GDP growth is expected to be at 6.98%. (Source:Livemint)


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Govt eases green clearance norms for captive power plants - Pragnya IAS Academy - News Analysis.

Govt eases green clearance norms for captive power plants.

• The exemption to industries having potential for heat recovery has been given to promote energy conservation
• This exemption was so far given to thermal power plants using waste heat boilers without any auxiliary fuel
The Centre has exempted industries like steel, cement and metal from mandatory prior environment clearance for setting up a new or expanding the existing captive power plant employing waste heat recovery boilers (WHRB) without using any auxiliary fuel.

The exemption to industries having potential for heat recovery has been given to promote energy conservation and reduce green house gas emissions, according to an order.
This exemption was so far given to thermal power plants using waste heat boilers without any auxiliary fuel.
Prior environment clearance will not be required for setting up of new or expansion of captive power plants employing WHRB without using any auxiliary fuel, in the existing cement plants, integrated steel plants, metallurgical industries and other industries having potential for heat recovery, the order said.
The objective was to promote energy conservation, reduce green house emissions and, in larger interest of the environment including climate change, it added.
The Union Environment Ministry has amended the norms and issued a fresh order following several representations from the industry, according to the order. (Source: Livemint)


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Govt eases green clearance norms for captive power plants.

Govt introduces IFSC Bill in Rajya Sabha - Pragnya IAS Academy - News Analysis.

Govt introduces IFSC Bill in Rajya Sabha.

• Currently, banking, capital markets and insurance sectors in IFSCs are regulated by multiple regulators
• The bill has a provision for establishment and incorporation of the Authority
The government Tuesday introduced a Bill to set up a unified authority for regulating all financial services in international financial services centres (IFSCs) in the country.
The International Financial Services Center Authority Bill, 2019 mandates that transaction of financial services in the IFCS shall be governed by an Authority headed by a Chairman.

Currently, banking, capital markets and insurance sectors in IFSCs are regulated by multiple regulators -- the RBI, Sebi and Irdai -- and this would provide inter-regulatory coordination.
The bill has a provision for establishment and incorporation of the Authority. Regulatory bodies including RBI, SEBI, IRDA, PFRDI would have one nominee as its member, while the Finance Ministry will have rights to nominate two officials in the Authority.
It will be "regulating the financial products, financial services and financial institutions in an IFSC," the bill said.
Two members could also be appointed by the central government on the recommendation of the selection committee.
"The Chairperson and a member shall hold offices for a term of three year from the date on which he enters upon his office and shall be eligible for reappointment," the bill said.
An IFSC enables to bring back to India the financial services and transactions that are currently carried out in offshore financial centers by Indian corporate entities and overseas branches or subsidiaries of financial institutions (FIs).
It provides business and regulatory environment that is comparable to other leading international financial centres in the world like London and Singapore.
IFSC provides Indian companies easier access to global financial markets.(Source: Livemint)


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Govt allows export oGovt allows export of bio-fuels from special economic zones, EoUs - Pragnya IAS Academy - News Analysis.f bio-fuels from special economic zones, EoUs - Pragnya IAS Academy - News Analysis.

Govt allows export of bio-fuels from special economic zones, EoUs.

The government has allowed export of bio-fuels from special economic zones (SEZs) and export-oriented units (EoUs) with certain conditions, according to a notice of the directorate general of foreign trade.

In August 2018, the government imposed restrictions on export of bio-fuels for non-fuel purposes. After this restriction, exporters operating from SEZs and EoUs made representations to remove this prohibition stating they only use imported material for export of final product.
They also informed government authorities that SEZ units have been granted letter of approval for export of bio-fuels and EoU units have obligations to fulfil under an export promotion scheme.
"Considering the hardship faced by the trade community and the fact that production of bio-fuels in EoU/SEZ would be from imported feedstock, therefore, it would not impact the domestic production/consumption. Hence, the restriction as applicable to DTA (domestic tariff area) may not be extended to EoU/SEZ," the DGFT notice said.
SEZs and EoUs are export-oriented units outside the ambit of domestic customs laws.
"Members of trade and industry are informed that export of bio-fuels for non-fuel purposes from EoU/SEZ will be regulated" under certain rules of SEZs and foreign trade policy, it added.
It said that the feedstock for production of bio-fuel for export from these areas should be from imported sources only. Bio-fuels include ethyl alcohol, petroleum oil and oils obtained from bituminous minerals, bio-diesel and mixtures. Before August 2018, exports of these items were allowed without any restrictions.
India exported ethyl alcohol worth USD 276.35 million in 2017-18 as against USD 224 million in the previous fiscal. Similarly, export of petroleum oil and oils obtained from bituminous minerals increased to USD 8 million in 2017-18 from USD 0.54 million in the previous fiscal. Biodiesel and mixtures shipments rose to USD 5.36 million in the last financial year from USD 2.73 million in 2016-17.
Last year, the directorate had also imposed restriction on import of bio-fuels including ethyl alcohol and other denatured spirits, bio-diesel, petroleum oils and oils obtained from bituminous minerals other than crude.


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Average of 4,500 cases per judge pending in High Courts, says Govt - Pragnya IAS Academy - News Analysis.

Average of 4,500 cases per judge pending in High Courts, says Govt.

From January 1, Telangana has its own high court, taking the number of high courts in the country to 25.

Each high court judge is saddled with nearly 4,500 pending cases, according to the Law Ministry.
At the same time, each judge of the subordinate judiciary has nearly 1,300 cases pending, the same data shows.

Going by the number of cases pending in high courts and the lower courts, the ministry came up with the average cases pending per judge based on the sanctioned strength.
According to the National Judicial Data Grid, at the end of 2018, 2.91 crore cases were pending with the district and subordinate courts. In the 24 high courts, 47.68 lakh cases were pending.
From January 1, Telangana has its own high court, taking the number of high courts in the country to 25.
The data states that while 4,419 cases are pending per judge in the high courts, 1,288 are pending with each lower court judge.
It says that while the sanctioned strength of the subordinate courts is 22,644, the working strength is 17,509 -- a shortage of 5,135 judicial officers.
Similarly, in the high courts, the sanctioned strength is 1,079, the working strength is 695 -- a shortfall of 384 judges.
The data was collated for parliamentary use.
Successive law ministers have been writing to chief justices of high courts urging them to fill up vacancies in the lower courts.
Incumbent Ravi Shankar Prasad recently urged the chief justices of high courts to speed up the recruitment of judicial officers for the lower judiciary, as according to him, one of the main reasons for high pendency was the inordinate delay in filling up the vacancies of judicial officers.
The minister urged the chief justices to hold timely examination and interviews to recruit judges for lower courts. (Source: The Business Standard)


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Average of 4,500 cases per judge pending in High Courts, says Govt.