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Monday, January 14, 2013

The Kelkar Committee - roadmap for fiscal consolidation





 the Kelkar Committee published a roadmap for fiscal consolidation.
  • The report stresses the need and urgency to address India's fiscal deficit.
  • A high fiscal deficit – the excess of government expenditure over receipts – can be problematic for many reasons.
  • The fiscal deficit is financed by government borrowing;
    •  increased borrowing can crowd out funds available for private investment. 
    • High government spending can also lead to a rise in price levels. 
  • Last year (2011-12), the central government posted a fiscal deficit of 5.8% (of GDP), significantly higher than the targeted 4.6%.  This is in stark contrast to five years ago in 2007-08, when after embarking on a path of fiscal consolidation the government's fiscal deficit had shrunk to a 30 year low of 2.5%.
  • With growth slowing this year, the committee expects tax receipts to fall short of expectations significantly and expenditure to overshoot budget estimates, leaving the economy on the edge of a "fiscal precipice".

Committee recommendations – expenditure
  • To tackle the deficit on the expenditure side, the committee wants to ease the subsidy burden.
  • The committee also recommends phasing out the subsidy on diesel and LPG by 2014-15
  • For the fertiliser subsidy, the committee recommends implementing the Department of Fertilisers proposal of a 10% price increase on urea.
Committee recommendations – receipts
  • Rising subsidies have not been matched by a significant increase in receipts through taxation: gross tax revenue as a percentage of GDP has remained around 10% of GDP 
  • TThe committee seeks to improve collections in both direct and indirect taxes via better tax administration
  • The committee feels that the pending Direct Tax Code Bill would result in significant losses and should be reviewed
  • To boost income from indirect taxes – the tax on goods and services – the committee wants the proposed Goods and Service Tax regime to be implemented as soon as possible.
  • Increasing disinvestment, the process of selling government stake in public enterprises, is another proposal to boost receipts.
  • The committee believes introducing new channels  for disinvestment would ensure that disinvestment receipts would meet this year's target of Rs 30,000 crore.
Taken together, these policy changes, the committee believe would significantly improve India's fiscal health and boost growth. 
  • .new channels
  •  'call option model
    •  This is a mechanism allowing  the government to offer for sale multiple securities over a period of time till disinvestment targets are achieved.  Investors would have the option to purchase securities at the cost of a premium. 
  • 'exchange traded funds
    •  which would comprise all listed securities of Central Public Sector Enterprises and would provide investors with the benefits of diversification, low cost access and flexibility




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Are we closer to a law on privacy?






    • Group of Experts on Privacy, Chaired by Mr. A. P. Shah, submitted its Report to the Planning Commission.
      •   The Expert Group was appointed to set out the principles that Indian privacy law should abide by
        • India does not have a law that specifies safeguards to privacy.
          • recent government initiatives, such as the UID, involve collection of personal information and storage in electronic form.  The absence of a law on privacy increases the risk to infringement of the fundamental right.
            • Recommendations of the Expert Group on Privacy
              • the new legislation on privacy should ensure that safeguards are technology neutral.  This means that the enactment should provide protections that are applicable to information, regardless of the manner in which it is stored: digital or physical form.
                • should protect all types of privacy, such as bodily privacy (DNA and physical privacy); privacy against surveillance (unauthorised interception, audio and video surveillance); and data protection.
                  • The safeguards under the Bill should apply to both government and private sector entities.
                    • There should be an office of a 'Privacy Commissioner' at both the central and regional level.
                      • There should be Self-Regulating Organisations set up by the industry.
                        • The legislation should ensure that entities that collect and process data would be accountable for these processes and the use to which the data is put.
                          • the Supreme Court has held privacy to be a fundamental right, it is restricted to certain aspects of a person's life.
                            • hese aspects include the privacy of one's home, family, marriage, motherhood, procreation and child-rearing. 
                              • Risks to privacy
                                • Government departments collect data under various legislations.  For instance, under the Passport Act, 1967 and the Motor Vehicles Act, 1988 persons have to give details of their address, date of birth etc.  These enactments do not provide safeguards against access and use of the information by third parties. 
                                  • recent government initiatives may increase the risk to infringement of privacy as personal information, previously only available in physical form, will now be available electronically. 
                                    • Initiatives such as the National e-Governance Plan, introduced in 2006 and Aadhaar would require maintenance of information in electronic form. 
                                      • Under the initiative, biometric details of the beneficiaries, such as retina scan and fingerprints, are collected and stored by the government.


                                        Will the changes to the Contract Labour Act benefit workers?




                                        Quotes:

                                        the PRS Blog » Will the changes to the Contract Labour Act benefit workers?

                                          • A change in the Contract Labour (Regulation and Abolition) Act, 1970 may be in the pipeline. 
                                            • The proposal is to bring parity between permanent and contractual workers in wages and other benefits.
                                              • The Contract Labour Act, 1970 regulates the employment of contract labour in establishments which employ 20 or more workmen.
                                                • It excludes any establishment whose work is intermittent or casual in nature. 
                                                  • The appropriate government may require establishments to provide canteens, rest rooms and first aid facilities to contract labourers.
                                                    • The contractor shall be responsible for payment of wages to each worker employed by him.
                                                      • According to the Report of the National Commission on Enterprises in the Unorganised Sector (NCEUS), more than 90% of the workforce is part of the unorganised sector. 
                                                        • Contract labour is found in certain activities in the unorganized sector such as in
                                                          • stone quarrying, beedi rolling, rice shelling and brick kiln. 
                                                            • The Commission recommended some measures to protect the workers in the unorganized sector such as
                                                              • ensuring minimum conditions of work, minimum level of social security and improved credit flow to the non-agricultural sector.
                                                                • The Report of the Working Group on "Labour Laws and other Regulations" for the 12th Five Year Plan, also proposed that the 1970 Act should be amended.
                                                                  •  The amendment should ensure that in case of contract labour performing work similar to that performed by permanent workers, they should be entitled to the same wage rates, holidays, hours of work and social security provisions.
                                                                    • whenever a contract worker is engaged through a contractor, the contract agreement between the employer and the contractor should clearly indicate the wages and other benefits to be paid by the contractor.
                                                                      • broad reforms in India's labour laws to allow for more flexibility in the labour market



                                                                        Development fee and a User development fee



                                                                        Development fee and a User development fee

                                                                        • The Ministry of Civil Aviation is considering abolishing the development fee being levied at the Delhi and Mumbai airports.
                                                                            • According to the Ministry, this is being done to make air travel more affordable.

                                                                          What is a development fee and a user development fee
                                                                          • Development Fee (DF) is primarily intended to fund the establishment or upgradation of an airport. 
                                                                            •  It is intended to bridge the gap between the cost of the project and the finance available with the airport operator.
                                                                            • Currently only the Mumbai and Delhi Airports levy a DF.
                                                                          • User development fee (UDF), which may be levied by the airports.
                                                                            • UDF is generally regarded as a revenue enhancing measure.  
                                                                            • It is levied by the airport operators to meet operational expenditure.
                                                                          Section 22 A of the Airports Authority Act, 1994 (amended in 2003) gives the Airport Authority of India (AAI) the power to levy and collect a development fee on embarking passengers.
                                                                          •  The Act provides that the development fee can be utilised only for
                                                                            • (a) funding or financing the upgradation of the airport
                                                                            • (b) establishing a new airport in lieu of the airport at which is levied; and 
                                                                            • (c) investing in shares of a private airport in lieu of an existing airport .
                                                                          • UDF is not levied and collected under the Airport Authority of India Act but under Rule 89 of the Aircraft Rules, 1937. Under the Aircraft Rules, UDF may be levied and collected by either the AAI or the private operator.
                                                                          According to the Airport Economic Regulatory AuthorityUDF is levied to ensure that the airport operators can get a fair return on their investments.

                                                                          What is the role of the Airport Economic Regulatory Authority
                                                                          • was established to regulate aeronautical tariffs.
                                                                            • determining the amount of DF and UDF for major airports.
                                                                              • In case of non-major airports, the UDF shall be determined by the central government.
                                                                                  RECENT :----- What has been the role of the Supreme Court?
                                                                                  • In 2009, the central government permitted the Mumbai and Delhi Airports to levy a DF.
                                                                                    • The rate of was prescribed by the central government and not by AERA.
                                                                                      • In 2011, the Supreme Court held that this levy of DF was illegal.  
                                                                                        • The Court based its decision on two grounds.
                                                                                          • Firstly, the court held that the rate of DF has to be determined by the AERA and not the central government.
                                                                                          •  Secondly, the Court held that the power to levy the fee lies with the Airport Authority as the development fee can only be utilised  for the performance of the purpose specified in the Act.
                                                                                      Can private operators collect a development fee and a user development fee?
                                                                                      • In 2003, the government amended the Airport Authority of India Act to allow the AAI with the prior permission of the central government to
                                                                                        • (i) to lease the premises of airports to private entities to undertake some of the functions of the AAI; 
                                                                                        • (ii) levy and collect a development fee on the embarking passengers at a rate that may be prescribed.

                                                                                      --

                                                                                      Afghanistan: Between Hope and Despair





                                                                                      Afghanistan: Between Hope and Despair


                                                                                      • The current US-led international military presence in Afghanistan completed 11 years on October 7, 2012.
                                                                                      • the longest military engagement in US history, surpassing even the Vietnam War, and is costing US taxpayers nearly $100 billion per year, a sum roughly six times larger than Afghanistan's annual gross national product of around $18 billion.
                                                                                      • Already, 30,000 US troops have been de- inducted as part of the declared drawdown plan. French troops too are scheduled to leave by December, and 2013 is scheduled to witness a steady withdrawal of combat troops from other countries as well.
                                                                                      • the Afghan National Security Forces (ANSF), efforts aimed at their build-up and capacity-building have been marred by hindrances, to say the least
                                                                                      • a new trend witnessed this year was 'Green on Green' attacks, wherein Afghan troops have committed fratricide and killed their comrades. Already 53 have died in 35 such incidents this year.

                                                                                      Taliban, on the other hand, remain resilient
                                                                                        • Though the international forces were successful in diluting the Taliban's hold in their heartland of Helmand and Kandahar, the latter have expanded elsewhere in the North and West.
                                                                                        • Their ability to conduct spectacular strikes remains intact and they have been able to penetrate the fortress of security, i.e., Kabul, with impunity.
                                                                                      • Governance issues continue to plague the Karzai administration with 
                                                                                        • corruption,
                                                                                        •  non-delivery of public services and 
                                                                                        • security remaining the major concerns.

                                                                                      • Recent high profile attacks :  insecurity and instability.
                                                                                      • The assassination of governorsdistrict and provincial police chiefs and 
                                                                                      • High Peace Council members including its chairman Burhanuddin Rabbani in September 2011 and 
                                                                                      • another member Arsala Rahmani in May 2012 have added to the overall sense of insecurity and instability.
                                                                                      • Phase 3 was announced in May 2012 after which more than half of Afghanistan and two thirds of the population would be under Afghan government control.

                                                                                      • Despite the gloom and despair, some remarkable developments have indeed taken place in Afghanistan since 2001 and especially after 2007.
                                                                                        • Education and health services have grown by leaps and bounds
                                                                                        • Trade has multiplied manifold, mineral and oil wealth have been discovered
                                                                                        • thanks to the internet and technology, general awareness among the population has increased.
                                                                                      • There is a prominent youth bulge and the youth are aspiring to better things in life and have no appetite for civil war.

                                                                                      • Women are seen more and more in the public arena with increased participation in all fields of life.
                                                                                      • Afghan parliament today has the largest number of women legislators in the region with 69 MPs constituting 28 per cent of the total seats, a figure larger in percentage and numbers than in India (60 MPs and 11 per cent).
                                                                                      • social and economic indicators too point in the positive direction. Health services have improved manifold as reflected in the 2012 report "Save the Children's 'Mothers' Index".
                                                                                        • The infant mortality rate is at 106 per 1,000 births, much better than 257 in the 1990s.
                                                                                        • The number of children attending school is now 7.1 million out of a total population of 26.5 million.
                                                                                        • During Taliban rule, girls were not permitted to attend school, but now an estimated 2.7 million girls attend school.

                                                                                      • As compared to only one Ariana Afghan Airlines in 2001, there are now eight foreign airlines operating from Afghanistan and the number would only grow.

                                                                                      • With 2012 almost gone, there is just about over a year left for Afghans before the international combat mission in Afghanistan ends
                                                                                      • As the Afghans and the world look towards a new dawn on 1 January 2015, there are some things that stand out clearly and have to be recognised by both the Afghans as well as the international community.
                                                                                      • Challenges
                                                                                        • Afghanistan cannot be expected to be transformed into a modern state by 2014. It is a process that will be long drawn with numerous hurdles and setbacks.
                                                                                        • Taliban is a phenomenon that cannot be wiped out from the map of Afghanistan. Somewhere and in some form, they would need to get integrated into Afghan politics, society and even government.
                                                                                        • Taliban is no longer as monolithic, cohesive and influential as it was in the late 1990s. There are frequent reports of fissures within the leadership as well as discontent among lower and mid-level cadres. Mullah Omar too has sounded reconciliatory notes in his traditional Eid address. It is therefore unlikely that the Taliban can ride to power as in the 1990s.
                                                                                      • Afghans have to learn to accept the country's geography. Given the country's geostrategic location in the region, external influences will remain and a way has to be found to govern Afghanistan.
                                                                                      • Pashtuns cannot be seen as the sole representatives of Afghanistan. Given the presence of three other major ethnic tribes, i.e., Tajik, Uzbek and Hazara, a sense of mutual acceptance and co-existence has to develop to overcome internal differences.

                                                                                      • Given the geopolitical payoffs of remaining in Afghanistan, the United States is unlikely to leave Afghanistan soon. The combat mission may end, but there are likely to be substantial military equipment, assets, intelligence mechanisms and approximately 25,000 troops in a training and advisory role.
                                                                                      • Finally, too many Afghans have been exposed to the fruits of modern life during the past decade. Education, health care and increased awareness will not let them succumb to the traps of a Taliban-like movement again soon.

                                                                                      Post-2014 Scenarios

                                                                                      • Afghanistan's scenarios after 2014 are more dependent upon developments between 2012 and 2014, than developments post-2014. Therefore, any scenario will depend upon the following crucial factors
                                                                                      • the success of stabilization efforts by 2014, the nature of the engagement of US and other international forces in Afghanistan post 2014,
                                                                                      • strengthening of ANSF and other institutions
                                                                                      • last, but not the least, Pakistan's game plan. 2014 also presents another interesting problem.
                                                                                      • integration of the Taliban into the political system
                                                                                      • The Afghan Presidential elections in August-September 2014 will coincide with the withdrawal of all international combat troops by December 2014. With Karzai ineligible for a third term and no clear alternative on the horizon, the December 2014 deadline could be a huge political gamble.


                                                                                      Afghanistan today stands at a crossroads. Most of the issues have to be thought over, debated and resolved by the Afghans themselves, the most important of these being developing a climate of mutual acceptance and space between various ethnic groups and stakeholders.


                                                                                      --

                                                                                      Sunday, January 13, 2013

                                                                                      The crisis in Somalia


                                                                                      The crisis in Somalia

                                                                                      Short Country Profile

                                                                                      Full Country Name: Somali Democratic Republic
                                                                                      Area: 637,657sq km
                                                                                      Population: 9.36 million (2010 UN estimate)
                                                                                      Capital City: Mogadishu
                                                                                      People: Somali (85%), Bantu, Arabs
                                                                                      Languages: Somali (official), Arabic, Italian, English
                                                                                      Religion: Sunni Muslim
                                                                                      Currency:  Somali shilling.  Although there is no central bank, various currencies are used. The self declared Republic of Somaliland has its own currency, the Somaliland shilling.
                                                                                      Government: The Transitional Federal Government (TFG) was formed in July 2005. Sheikh Sharif Sheikh Ahmed was appointed President of the TFG in January 2009.  Regional governments exist in Somaliland and Puntland.
                                                                                      A short history

                                                                                      Somalia is a country that has experienced excessive amounts of political instability during the past decade. Somalia, like most other countries in Africa, was colonized by European nations during the late 1800s. In 1887, Britain became concerned with keeping the route to India open through the Suez Canal, which was opened in 1869 and as a result Britain proclaimed Somalia as a British protectorate and named it British Somaliland.

                                                                                      In the beginning of the 20th century British control of British Somaliland was challenged by native uprisings. In 1910 the British abandoned the interior of Somaliland and withdrew to the coastal regions. Italy seized the opportunity to extend its control inland and took over many of the regions that the British had abandoned.

                                                                                      In the aftermath of W.W.II, Italy was forced to relinquish its possessions in Africa and control of Somalia was given to the United Nations and for 10 years it was a UN trust territory under Italian administration until July 1, 1960 when Somalia was granted independence and it merged with the former British protectorate of Somaliland.

                                                                                      Somalia's transformation into an independent state was peaceful in the beginning but is soon erupted into a violent conflict. In 1969 Abdi Rashid Ali Shirmarke, Somalia's second President, was assassinated and in the following days a military coup, led by Major General Muhammed Siyad Barre, gained control of the country. In 1970 Barre declared Somalia to be a socialist state.

                                                                                      Armed domestic opposition to Siyad Barre arose in 1988 in the Northern part of the country. The Somali National Movement (SNM), the United Somali Congress (USC), and the Ogadeni Somali Patriotic Movement (SPM) joined forces to fight against Siyad Barre's government.

                                                                                      In 1990 as Barre began to lose control of the country, the local political and business figures came together to sign the Mogadishu Manifesto, calling for Barre's resignation.

                                                                                      Ethnic problems

                                                                                      Prior to the civil war that occurred in Somalia in 1991, the country appeared to be one of the most homogeneous countries in Africa. The majority of people in Somalia are ethnic Somalis who speak dialects of the same language and practice the same religion. However, a multitude of ethnic and cultural divisions exists within the country. The practice of Islam varies nationwide, and has over the years, been influenced by different aspects of Arab culture.

                                                                                      Somalia has a significant number of ethnic and economic minority groups. People of Bantu descent tend to live in farming villages and in the southern part of the country. Individuals of Arab descent and other non-African immigrants tend to reside in the coastal cities, such as Mogadishu.

                                                                                      Among Somalis, a primary division exists between the Samaale and the Sab.

                                                                                      • The Samaale are the majority of the Somali people and consist of four main clan families the Dir, Isaaq, Hawiye, and Daaroodeach which is further divided into sub-clans. The Samaale are primarily of nomadic origin and live throughout Somalia and in Ethiopia, Kenya, and Djibouti.
                                                                                      • The Sab consist of two clan families, the Digil and Raxanweyn, located primarily in southern Somalia, where they combine farming and herding and are more likely than the Samaale to be sedentary.

                                                                                      Current status

                                                                                      Somalia has not had a central government since President Siad Barre fled in 1991, leaving the country at the mercy of its numerous warring factions and where clan or Islamic Shari'ah law rule.

                                                                                      Owing to continuing unrest in the south, a central government is unlikely to evolve soon.

                                                                                      somaliaA decentralized central federation of regional political entities has emerged (see map), including the self-proclaimed but unrecognized Republic of Somaliland in the northwest, the self-proclaimed Puntland State in the northeast, Jubaland in the south near Kismayo, and a future Banadir regional administration around Mogadishu when warlords Hussein Aideed (son of late General Farah Aideed) and Ali Mahdi settle their differences.

                                                                                      The lack of a centralized state has been a boon for Somaliland and Puntland, as the absence of the corruption and repression that characterized the previous government has facilitated local economic activity.

                                                                                      The presence of few regulations, nominal taxation, and negligible price controls has encouraged the establishment of many new businesses; but the stability in these areas is indeed less, and entrepreneurs remain vulnerable to theft and violence. This risk is much greater in the unstable southern and central portions of the country, in which domination by clan militias, banditry, and looting make the free movement of people, goods, and services nearly impossible.

                                                                                      Somalia as a sea piracy hub

                                                                                      Piracy off the coast of Somalia has been a threat to international shipping since the second phase of the Somali Civil War in the early 21st century. Since 2005, many international organizations, including the International Maritime Organization and the World, have expressed concern over the rise in acts of piracy

                                                                                      Piracy has impeded the delivery of shipments and increased shipping expenses, costing an estimated £10 billion a year in global trade. According to the German Institute for Economic Research (DIW), a veritable industry of profiteers has also risen around the piracy. Insurance companies, in particular, have profited from the pirate attacks, as insurance premiums have increased significantly.

                                                                                       A United Nations report and several news sources have suggested that piracy off the coast of Somalia is caused in part by illegal fishing.  According to the DIW and the U.S. House Armed Services Committee, the dumping of toxic waste in Somali waters by foreign vessels has also severely constrained the ability of local fishermen to earn a living and forced many to turn to piracy instead. 70 percent of the local coastal communities "strongly support the piracy as a form of national defense of the country's territorial waters", and the pirates believe they are protecting their fishing grounds and exacting justice and compensation for the marine resources stolen.

                                                                                      International efforts to solve the Somalia issue

                                                                                      The World leaders, in recent London Conference on 23rd February, 2012, have pledged to boost support for measures to fight piracy, terrorism and political instability in Somalia.

                                                                                      At the start of the conference, President Sheikh Sharif Ahmed, leader of the transitional government, said Somalis wanted to shake off horrendous memories of the past, but feared the gathering might be just another diplomatic talking exercise.

                                                                                      Representatives from many Somali factions attended the London conference, but Al-Shabab was not invited as the militant group denounced the London conference as another attempt to colonize Somalia.

                                                                                      US Secretary of State Hillary Clinton said the world must keep Islamist militant group Al-Shabab on the run which controls large swathes of territory and they have recently joined with al-Qaeda. The USA has ruled out talks with Al-Shabab, saying that its decision to join forces with al-Qaeda showed that it was not on the side of peace, stability or the Somali people. However, the USA added that the international community was ready to engage with anyone willing to renounce violence and embrace the peace process.

                                                                                      The UK Prime Minister David Cameron, hosting the conference, said setting up an inclusive government was vital to the country's future, and that it must work alongside AU military action.

                                                                                      The conference agreed for more humanitarian aid, support for African Union peacekeepers and better international co-ordination. In a final communique, the 55 countries and organisations gathered in London said they would:

                                                                                      • Back the handover of power from the transitional government to an inclusive administration by August
                                                                                      • Provide more support for African Union peacekeepers
                                                                                      • Better co-ordinate humanitarian aid, shifting focus to long-term needs
                                                                                      • Crack down on piracy by expanding on agreements to bring suspects to trial in countries away from Somalia

                                                                                      India's role

                                                                                      India's stand on the Somali crisis is that the solution should be Somali-owned and supported by the Somali institutions. Any imposition of external solutions will not work in the long run.

                                                                                      Pirates now cover a geographical area of roughly 2.8 million square miles and safety and security of seafarers remains a matter of very serious concern. To address this issue, there is a need for effective international cooperation.

                                                                                      India also supports the strengthening of the national and regional capacity in the drafting of national anti-piracy legislation, and towards the investigation, prosecution and sentencing of suspected pirates.

                                                                                      The future outlook

                                                                                      For the first time in years, there is a real chance to make progress in Somalia. The Islamist militants were forced out of Mogadishu last year, and are under pressure from Kenyan, Ethiopian and Somali government troops elsewhere.

                                                                                      On 22nd February, 2012, one day prior to the London Conference, Ethiopian and Somali troops took control of the strategic stronghold of Baidoa, in the south-west of the country, from Al-Shabab.

                                                                                      Al Shabaab is militarily weakened and increasingly on the back foot, pushed out of Mogadishu by African Union forces. A fragile peace process is making progress. And there is growing international will to stamp out piracy.

                                                                                      The goals of the London Conference are wide-reaching, but also practical and implementable. World's nations are focusing on both the underlying causes of instability and its symptoms, such as famine, piracy and terrorism. Their hope is to reach agreement on: injecting new momentum into a political process that will create a more transparent and representative government that is better able to provide development and security for its people; strengthening the African Union peacekeeping mission in Somalia; building stability at the local level through humanitarian aid and economic development; and tackling the piracy and terrorism that threatens to destabilize the Horn of Africa.

                                                                                      Ultimately decisions on Somalia's future rest with the Somali people. The role of the international community is to facilitate Somalia's progress and development, with unity and coordinated support to Somalia.

                                                                                      The goals of International powers are ambitious, but realistic. They know these goals can't be achieved overnight and certainly not without international cooperation. It will be a remarkable progress when coordinated leadership takes firm steps in making a reality of their shared vision of a more stable Somalia.




                                                                                      Nuclear Safety Regulatory Authority (NSRA)






                                                                                      Are there enough regulatory safeguards against nuclear power


                                                                                    • The Kudankulam plant is expected to provide 2 GW of electricity annually. but activists concerned about the risks of nuclear energy are demanding that the plant be shut down. 
                                                                                    • Present Regulation system
                                                                                    • Atomic materials and atomic energy are governed by the Atomic Energy Act, 1962.  The Act empowers the central government to produce, develop and use atomic energy. 
                                                                                    • At present, nuclear safety is regulated by the Atomic Energy Regulatory Board (AERB)
                                                                                      • Key issues under the present nuclear safety regulatory mechanism

                                                                                      • The AERB is not empowered to operate as an independent operator
                                                                                        • The AERB was established by the government through a notification and not through an Act of Parliament.
                                                                                          • Its powers and functions are therefore amendable by the Department of Atomic Energy through executive orders.  The parliamentary oversight exercised upon such executive action is lower than the parliamentary oversight over statutes.
                                                                                          • the Atomic Energy Commission that sets out the atomic energy policy, and oversees the functioning of the AERB, is headed by the Secretary, Department of Atomic Energy.  This raises a conflict of interest, as the Department exercises administrative control over NPCIL that operates nuclear power plants.
                                                                                          • CAG Report in 2011, had highlighted the drawbacks in the present regulatory mechanisms and recommended the establishment of a statutory regulator.
                                                                                          • Proposed mechanism

                                                                                          • Following the Fukushima nuclear incident in 2011, the Nuclear Safety Regulatory Authority Bill, 2011 was introduced in Parliament to replace the AERB.
                                                                                            • The Bill establishes the Nuclear Safety Regulatory Authority (NSRA) to 
                                                                                            • regulate nuclear safety, and 
                                                                                            • a Nuclear Safety Council to oversee nuclear safety policies that the NSRA issues.

                                                                                            • Under the Bill, all activities related to nuclear power and nuclear materials may only be carried out under a licence issued by the NSRA.
                                                                                              • Extent of powers and independence of the NSRA and limitations

                                                                                              • The Bill establishes the NSRA as a statutory authority that is empowered to issue nuclear safety policies and regulations
                                                                                                • The Nuclear Safety Council established under the Bill to oversee these policies includes the Secretary, Department of Atomic Energy.  The conflict of interest that exists under the present mechanism may thus continue under the proposed regulatory system.
                                                                                                • The Bill provides that members of the NSRA can be removed by an order of the central government without a judicial inquiry.  This may affect the independence of the members of the NSRA.
                                                                                                • The proposed legislation also empowers the government to exclude strategic facilities from the ambit of the NSRA.  The government can decide whether these facilities should be brought under the jurisdiction of another regulatory authority.

                                                                                                •     more details : 
                                                                                                  http://www.prsindia.org/uploads/media/Nuclear%20Safety/Legislative%20Brief%20NSRA%20Bill,%202011.pdf

                                                                                                  --




                                                                                                  Some Important Anti-Corruption Bills in Parliament









                                                                                                  The Lokpal and Lokayuktas Bill, 2011

                                                                                                  The Lok Sabha passed  the Lok Pal and Lokayuktas Bill, 2011 on December 27, 2011.  The text of the Bill as Passed by Lok Sabha is available here  And  PRS Analysis of the Bill as Passed by Lok Sabha is available here  .


                                                                                                  The Bill as passed by Lok Sabha has incorporated some of the recommendations of the Department Related Standing Committee on Personnel, Public Grievances, Law and Justice.  The Lok Pal Bill, 2011, introduced in the Lok Sabha on August 4, 2011, was withdrawn by the government.  PRS prepares a note of comparison of the Lok Pal Bill, 2011; the Standing Committee Report on the Lok Pal Bill; and the Lok Pal and Lokayuktas Bill, 2011. Also, prepares a note of comparison of major differences between the Lok Pal Bill 2011 and the Lok Pal and Lokayuktas Bill, 2011.

                                                                                                  • The Lokpal and Lokayuktas Bill, 2011, introduced on December 22, 2011, was passed by the Lok Sabha on December 27, 2011.  The Bill was taken up for consideration and passing in the Rajya Sabha, which referred it to a Select Committee (Chairperson: Shri Satyavrat Chaturvedi).  The Committee is scheduled to submit its report by the last week of the Monsoon session.
                                                                                                  • The Bill provides for establishment of the Lokpal at the centre and Lokayuktas in the states for inquiring into complaints of corruption against certain public servants.  The Bill, once passed, shall be applicable to states if they give their consent to its application.
                                                                                                  • The members of the Lokpal (Lokayuktas) shall be appointed by the President (Governor) on the basis of the recommendations of the Selection Committee.
                                                                                                  • The Selection Committee for the Lokpal shall comprise of the Prime Minister (Chief Minister), Speaker of the Lower House, Leaders of the Opposition of the Lower House, the Chief Justice of India (Chief Justice of the High Court) or a judge of the Supreme Court nominated by him, and an eminent jurist nominated by the President (Governor).  The Bill makes it mandatory for the Selection Committee to constitute a search committee of at least seven members.  At least 50% of the members shall be from among SC, ST, OBC, women or minority communities.  The Selection Committee may consider a candidate other than one recommended by the Search Committee.     
                                                                                                  • The Lokpal and Lokayuktas shall consist of one chairperson and up to eight members.  The Chairperson shall be the CJI or a present or former judge of the Supreme Court or a non-judicial member with specified qualifications (Chief Justice or a Judge of a High Court).  Fifty percent of the other members shall be judicial members (judges of the Supreme Court and Chief Justices of the High Court in case of Lokpal and judge of a High Court in case of Lokayuktas).  A non-judicial member is required to have 25 years experience in anti-corruption policy, public administration, vigilance and finance.
                                                                                                  • At least 50 per cent of the members of both bodies shall be from among SC, ST, OBC, minorities and women.
                                                                                                  • Members of the Lokpal may be removed by the President after an inquiry by the Supreme Court.  The Supreme Court may inquire based on a reference from the President.  Such reference may be made by the President on his own, or on a citizen's petition if the President is satisfied by it, or on a petition signed by 100 MPs.
                                                                                                  • A Lokpal can enquire into offences under the Prevention of Corruption Act, 1988 (PCA) committed by:
                                                                                                  • the PM with specified safeguards,
                                                                                                  • current and former Union Ministers,
                                                                                                  • current and former MPs,
                                                                                                  • group A, B, C, D officers,
                                                                                                  • employees of a company, society or a trust set up by an Act of Parliament, or financed or controlled by the central government.
                                                                                                  • employees of association of persons that (i) have received funding from the government and have an annual income above a specified amount; or (ii) have received public donation and have an annual income above a specified amount or received foreign funding above Rs 10 lakh a year. 
                                                                                                  • An inquiry against the PM has to be held in-camera and approved by a 2/3rd majority of the full bench of the Lokpal.  The PM cannot be investigated if the complaint is related to international relations, external and internal security, public order, atomic energy and space. 
                                                                                                  • The Lokayuktas shall have jurisdiction over the CM, Ministers, MLAs, all state government employees and certain private entities (including religious institutions).
                                                                                                  • The Lokpal's inquiry wing is required to inquire into complaints within 60 days of their reference.  On considering an inquiry report the Lokpal shall (i) order an investigation; (ii) initiate departmental proceedings; or (iii) close the case and proceed against the complainant for making a false and frivolous complaint.  The investigation shall be completed within 6 months.  The Lokpal may initiate prosecution through its Prosecution Wing before the Special Court set up to adjudicate cases.  The trial shall be completed within a maximum of two years.  The Bill specifies a similar procedure for Lokayuktas.
                                                                                                  • The Bill removes the requirement of sanction for initiating investigation and prosecution.
                                                                                                  • The Bill penalises false and frivolous complaints with imprisonment for a maximum of one year and a fine of up to one lakh rupees.  The Bill amends the PCA to enhance penalties for a public servant for corruption from maximum of five years to seven years.  For criminal misconduct and habitually abetting corruption, the jail term is increased from seven years to ten years.
                                                                                                  Security / Law / strategic affairs

                                                                                                  The Whistle Blowers Protection Bill, 2011

                                                                                                  Commonly known as the Whistleblower's Bill, it seeks to establish a mechanism to register complaints on any allegations of corruption or wilful misuse of power against a public servant.  The Bill also provides safeguards against victimisation of the person who makes the complaint.  हिंदी के लिए क्लिक करें 

                                                                                                  Highlights of the Bill

                                                                                                  • The Bill seeks to protect whistleblowers, i.e. persons making a public interest disclosure related to an act of corruption, misuse of power, or criminal offence by a public servant.
                                                                                                  • Any public servant or any other person including a non-governmental organization may make such a disclosure to the Central or State Vigilance Commission. 
                                                                                                  • Every complaint has to include the identity of the complainant.
                                                                                                  • The Vigilance Commission shall not disclose the identity of the complainant except to the head of the department if he deems it necessary.  The Bill penalises any person who has disclosed the identity of the complainant.
                                                                                                  • The Bill prescribes penalties for knowingly making false complaints.

                                                                                                  Key Issues and Analysis

                                                                                                  • The Bill aims to balance the need to protect honest officials from undue harassment with protecting persons making a public interest disclosure.  It punishes any person making false complaints.  However, it does not provide any penalty for victimising a complainant.  
                                                                                                  • The CVC was designated to receive public interest disclosures since 2004 through a government resolution.  There have been only a few hundred complaints every year.  The provisions of the Bill are similar to that of the resolution.  Therefore, it is unlikely that the number of complaints will differ significantly.
                                                                                                  • The power of the CVC is limited to making recommendations.  Also it does not have any power to impose penalties.  This is in contrast to the powers of the Karnataka Lokayukta and the Delhi Lokayukta. 
                                                                                                  • The Bill has a limited definition of disclosure and does not define victimisation.  Other countries such as US, UK, and Canada define disclosure more widely and define victimisation.
                                                                                                  • The Bill differs on many issues with the proposed Bill of the Law Commission and the 2nd Administrative Reform Commission's report.   These include non-admission of anonymous complaints and lack of penalties for officials who victimise whistleblowers.
                                                                                                  Security / Law / strategic affairs

                                                                                                  The Whistle Blowers Protection Bill, 2011

                                                                                                  Commonly known as the Whistleblower's Bill, it seeks to establish a mechanism to register complaints on any allegations of corruption or wilful misuse of power against a public servant.  The Bill also provides safeguards against victimisation of the person who makes the complaint.  हिंदी के लिए क्लिक करें 

                                                                                                  Highlights of the Bill

                                                                                                  • The Bill seeks to protect whistleblowers, i.e. persons making a public interest disclosure related to an act of corruption, misuse of power, or criminal offence by a public servant.
                                                                                                  • Any public servant or any other person including a non-governmental organization may make such a disclosure to the Central or State Vigilance Commission. 
                                                                                                  • Every complaint has to include the identity of the complainant.
                                                                                                  • The Vigilance Commission shall not disclose the identity of the complainant except to the head of the department if he deems it necessary.  The Bill penalises any person who has disclosed the identity of the complainant.
                                                                                                  • The Bill prescribes penalties for knowingly making false complaints.

                                                                                                  Key Issues and Analysis

                                                                                                  • The Bill aims to balance the need to protect honest officials from undue harassment with protecting persons making a public interest disclosure.  It punishes any person making false complaints.  However, it does not provide any penalty for victimising a complainant.  
                                                                                                  • The CVC was designated to receive public interest disclosures since 2004 through a government resolution.  There have been only a few hundred complaints every year.  The provisions of the Bill are similar to that of the resolution.  Therefore, it is unlikely that the number of complaints will differ significantly.
                                                                                                  • The power of the CVC is limited to making recommendations.  Also it does not have any power to impose penalties.  This is in contrast to the powers of the Karnataka Lokayukta and the Delhi Lokayukta. 
                                                                                                  • The Bill has a limited definition of disclosure and does not define victimisation.  Other countries such as US, UK, and Canada define disclosure more widely and define victimisation.
                                                                                                  • The Bill differs on many issues with the proposed Bill of the Law Commission and the 2nd Administrative Reform Commission's report.   These include non-admission of anonymous complaints and lack of penalties for officials who victimise whistleblowers.
                                                                                                  Security / Law / strategic affairs

                                                                                                  The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organisations Bill, 2011

                                                                                                  2012-11-21 
                                                                                                  • The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organizations Bill, 2011 was introduced in the Lok Sabha on March 25, 2011 by the Minister of State for Personnel, Public Grievance and Pensions, Mr. V. Narayanasamy. 
                                                                                                  • India had signed the United Nations Convention against Corruption on December 9, 2005. The Bill is necessary for the ratification of the Convention.  It provides a mechanism to deal with bribery among foreign public officials (FPO) and officials of public international organizations (OPIO).
                                                                                                  • The Bill empowers the Central Government to enter into agreements with other countries (contracting states) for enforcing this law and for exchange of investigative information. 
                                                                                                  • The Bill criminalizes the following acts : 

                                                                                                    • Acceptance or solicitation of bribes by FPO and OPIO for acts or omissions in their official capacity;

                                                                                                    • Offering or promising to offer a bribe to any FPO and OPIO for obtaining or retaining business;

                                                                                                    • Abetment or attempting either of the above acts.
                                                                                                  • Any person who commits offences under the Bill shall be liable to imprisonment between six months and seven years and a fine.  Extradition treaties entered into by India with other countries that are signatories to the convention are deemed to be amended to include offences under the Bill.
                                                                                                  • In case the evidence required for investigating an offence under the Bill is available in a contracting state, an application may be made by the Investigation Officer to the Special Judge appointed under the Prevention of Corruption Act, 1988. 
                                                                                                  • Similarly, when a letter of request is received by the Central Government from a contracting state the same shall be forwarded to the Special Judge for executing the request in accordance with the provisions of the Bill and Criminal Procedure Code, 1973.
                                                                                                  • The government of India or the Special Judge may impose conditions upon the imprisonment of persons being transferred from India.  Reciprocally, the Bill provides for compliance with conditions imposed by a contracting state when a prisoner is transferred to India.
                                                                                                  • The High Court shall hear appeals over the decisions of the Special Judge.      
                                                                                                  Security / Law / strategic affairs

                                                                                                  The Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of their Grievances Bill, 2011

                                                                                                    Highlights of the Bill

                                                                                                    • The Bill seeks to create a mechanism to ensure timely delivery of goods and services to citizens.
                                                                                                     Image Credit: www.ipr.ap.nic.in
                                                                                                    • Every public authority is required to publish a citizens charter within six months of the commencement of the Act.  The Charter will detail the goods and services to be provided and their timelines for delivery.
                                                                                                    • A citizen may file a complaint regarding any grievance related to: (a) citizens charter; (b) functioning of a public authority; or (c) violation of a law, policy or scheme. 
                                                                                                    • The Bill requires all public authorities to appoint officers to redress grievances.  Grievances are to be redressed within 30 working days.  The Bill also provides for the appointment of Central and State Public Grievance Redressal Commissions.
                                                                                                    • A penalty of up to Rs 50,000 may be levied upon the responsible officer or the Grievance Redressal Officer for failure to render services.

                                                                                                    Key Issues and Analysis

                                                                                                    • Parliament may not have the jurisdiction to regulate the functioning of state public officials as state public services fall within the purview of state legislatures.
                                                                                                    • This Bill may create a parallel grievance redressal mechanism as many central and state laws have established similar mechanisms. 
                                                                                                    • Companies that render services under a statutory obligation or a licence may be required to publish citizens charters and provide a grievance redressal mechanism. 
                                                                                                    • The Commissioners may be removed without a judicial inquiry on an allegation of misbehaviour or incapacity.  This differs from the procedure under other legislations.
                                                                                                    • Appeals from the Commissions' decisions on matters of corruption will lie before the Lokpal or Lokayuktas.  The Lokpal and some Lokayuktas have not been established. 
                                                                                                    • Only citizens can seek redressal of grievances under the Bill.  The Bill does not enable foreign nationals who also use services such as driving licenses, electricity, etc., to file complaints.
                                                                                                    Science / Energy / Mines/ Environment

                                                                                                    The Electronic Delivery of Services Bill, 2011

                                                                                                     Image Credit: Informatics.nic.in

                                                                                                      Highlights of the Bill

                                                                                                      • The Bill requires public authorities to deliver all public services electronically within a maximum period of eight years.
                                                                                                      • There are two exceptions to this requirement: (a) services that cannot be delivered electronically; and (b) services that public authorities, in consultation with the Commissions, decide not to deliver electronically.
                                                                                                      • The Bill establishes Central and State Electronic Service Delivery Commissions to monitor compliance of government departments, and hear representations. 
                                                                                                      • Public authorities have to establish a mechanism to redress complaints. Complaints may be for: (a) non-delivery of services in an electronic form; or (b) deficiency in the electronic service provided.  In the first case, a representation may be made against the mechanism's orders before the Commission.
                                                                                                      • A maximum penalty of Rs 5,000 may be imposed on a defaulting officer by the Central and State Commissions.
                                                                                                      Key Issues and Analysis
                                                                                                      • To provide electronic services, information may be stored electronically.  However, the Bill does not provide any safeguards to protect the security of such information.
                                                                                                      • The Bill provides for complaints against: (a) non-availability of electronic services; and (b) deficiency in electronic service.  The appellate mechanism is available in the former case and not in the latter case.
                                                                                                      • The grievance redressal mechanism under this Bill may overlap with the grievance redressal mechanism under the Citizens Charter Bill, 2011.  Additionally, some states have enacted their own laws on electronic delivery of services.
                                                                                                      • The Bill states that a government order for the appointment of a Commissioner 'may not be questioned in any manner'.  This may be in contradiction with the decision of the Supreme Court on the appointment of the Chief Vigilance Commissioner.
                                                                                                      • The Standing Committee's recommendations include: (a) the need to simultaneously provide services manually; and (b) that infrastructure costs to be borne by the centre.
                                                                                                      Industry / Commerce / Finance

                                                                                                      The Prevention of Money Laundering (Amendment) Bill, 2011

                                                                                                      • The Prevention of Money Laundering (Amendment) Bill, 2011 was introduced by the Minister of Finance, Mr. Pranab Mukherjee in the Lok Sabha on December 27, 2011.  This Bill seeks to amend the Prevention of Money Laundering Act, 2002. 
                                                                                                      • The Bills proposes to introduce the concept of 'corresponding law' to link the provisions of Indian law with the laws of foreign countries.  It also adds the concept of 'reporting entity' which would include a banking company, financial institution, intermediary or a person carrying on a designated business or profession.
                                                                                                      • The Bill expands the definition of offence under money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime.          
                                                                                                      • The Prevention of Money Laundering Act, 2002 levies a fine up to Rs five lakh.  The Bill proposes to remove this upper limit.  
                                                                                                         Image Credit: PRS Legislative Research
                                                                                                         
                                                                                                      • The Bill seeks to provide for provisional attachment and confiscation of property of any person (for a period not exceeding 180 days).  This power may be exercised by the authority if it has reason to believe that the offence of money laundering has taken place.
                                                                                                      • The Bill proposes to confer powers upon the Director to call for records of transactions or any additional information that may be required for the purposes of investigation.  The Director may also make inquiries for non-compliance of the obligations of the reporting entities.
                                                                                                      • The Bill seeks to make the reporting entity, its designated directors on the Board and employees responsible for omissions or commissions in relation to the reporting obligations. 
                                                                                                      • The Bill states that in the proceedings relating to money laundering, the funds shall be presumed to be involved in the offence, unless proven otherwise.  
                                                                                                      • The Bill proposes to provide for appeal against the orders of the Appellate Tribunal directly to the Supreme Court within 60 days from the communication of the decision or order of the Appellate Tribunal.
                                                                                                      • The Bill seeks to provide for the process of transfer of cases of the Scheduled offences pending in a court (which had taken cognizance of the offence) to the Special Court for trial.  In addition, on receiving such cases, the Special Court shall proceed to deal with it from the stage at which it was committed.
                                                                                                      • Part B of the Schedule in the existing Act includes only those crimes that are above Rs 30 lakh or more whereas Part A did not specify any monetary limit of the offence.  The Bill proposes to bring all the offences under Part A of the Schedule to ensure that the monetary thresholds do not apply to the offence of money laundering.
                                                                                                      Security / Law / strategic affairs

                                                                                                      The National Identification Authority of India Bill, 2010

                                                                                                      The central government plans to issue a unique identification number (called Aadhaar) to every resident of India.  The number shall be linked to a resident's demographic and biometric information.  A resident can use his Aadhaar number to identify himself anywhere in the country in order to access certain benefits and services.  The Bill seeks to establish the National Identification Authority and lay down the properties of Aadhaar, process of issuing the Aadhaar and safeguards for protection of privacy of Aadhaar number holders.     


                                                                                                      Highlights of the Bill

                                                                                                      • The Bill seeks to establish the National Identification Authority of India (NIAI) to issue unique identification numbers (called 'Aadhaar') to residents of India.
                                                                                                      • Every person residing in India is entitled to obtain an Aadhaar number after furnishing relevant demographic and biometric information.  No information related to race, religion, caste, language, income or health shall be collected. 
                                                                                                      • The information collected shall be stored in the Central Identities Data Repository.  This shall be used to provide authentication services.
                                                                                                      • Sharing of data is prohibited except by the consent of the resident; by a court order; or for national security, if directed by an authorised official of the rank of Joint Secretary or above.
                                                                                                      • The Bill also establishes an Identity Review Committee which shall monitor the usage patterns of Aadhaar numbers.  

                                                                                                      Key Issues and Analysis

                                                                                                      • The Bill does not make it mandatory for an individual to enroll with the NIAI.  However, it does not prevent any service provider from prescribing Aadhaar as a mandatory requirement for availing services.
                                                                                                      • The information collected by NIAI may be shared with agencies engaged in delivery of public benefits and services with prior written consent of the Aadhaar holder.  The safeguards provided for preventing misuse of this information may be inadequate.
                                                                                                      • The Bill requires the NIAI to disclose identity information in the interest of national security, if so directed by an authorised officer.  The safeguards for protection of privacy differ from the Supreme Court guidelines on telephone tapping.
                                                                                                      • The Bill states that no court shall take cognizance of any offence, except on a complaint made by the NIAI.  This could result in a conflict of interest situation if the offence is committed by a member of the NIAI.
                                                                                                      • Details of demographic and biometric information to be recorded have been left to regulations.  This empowers the NIAI to collect additional information without prior approval from Parliament.
                                                                                                      Security / Law / strategic affairs

                                                                                                      The Judicial Standards and Accountability Bill, 2010

                                                                                                      The Judicial Standards and Accountability Bill tries to lay down enforceable standards of conduct for judges.  It also requires judges to declare details of their and their family members' assets and liabilities.  Importantly, it creates mechanisms to allow any person to complain against judges on grounds of misbehaviour or incapacity.  


                                                                                                      Highlights of the Bill

                                                                                                      • The Judicial Standards and Accountability Bill, 2010 requires judges to declare their assets, lays down judicial standards, and establishes processes for removal of judges of the Supreme Court and High Courts. 
                                                                                                      • Judges will be required to declare their assets and liabilities, and also that of their spouse and children.
                                                                                                      • The Bill establishes the National Judicial Oversight Committee, the Complaints Scrutiny Panel and an investigation committee.  Any person can make a complaint against a judge to the Oversight Committee on grounds of 'misbehaviour'.
                                                                                                      • A motion for removal of a judge on grounds of misbehaviour can also be moved in Parliament.  Such a motion will be referred for further inquiry to the Oversight Committee.
                                                                                                      • Complaints and inquiries against judges will be confidential and frivolous complaints will be penalised.
                                                                                                      • The Oversight Committee may issue advisories or warnings to judges, and also recommend their removal to the President.

                                                                                                      Key Issues and Analysis

                                                                                                      • The key issue is whether the balance between independence and accountability is maintained by the proposed mechanism in the Bill.  The Oversight Committee has non-judicial members which might impinge on the independence of the judiciary.
                                                                                                      • The Bill penalises anyone who breaches the confidentiality of complaints.  It is questionable whether a penalty is needed for a frivolous complaint that remains confidential.
                                                                                                      • The Scrutiny Panel has judges from the same High Court.  This is different from the in-house procedure of the Supreme Court.
                                                                                                      • The Oversight Committee has non-judicial members.  The procedure of the Committee is not an in-house procedure of the judiciary.  It is not clear whether the power of the Oversight Committee to impose minor measures is constitutionally valid.
                                                                                                      • The Bill does not mention whether a judge has the right to appeal to the Supreme Court against an order of removal issued by the President after Parliament finds him guilty of 'misbehaviour'. 
                                                                                                      Industry / Commerce / Finance

                                                                                                      The Public Procurement Bill, 2012

                                                                                                      • The Public Procurement Bill, 2012 was introduced by the Ministry of Finance in the Lok Sabha on May 14, 2012.  This Bill seeks to regulate and ensure transparency in the procurement process.
                                                                                                      • A procuring entity could be a Ministry or Department of the central government, any Central Public Sector Undertaking, any company in which the government has a stake of more than 50%. 
                                                                                                      • This Bill shall not apply to procurements which are less than Rs 50 lakh, emergency procurements made for disaster management, and procurement for the purpose of national security.
                                                                                                      • The basic norms that the procuring entity shall adhere to include: (a) ensuring efficiency, economy and transparency; (b) provide fair and equitable treatment to bidders; (c) promote competitiveness; (d) ensure the quality is consistent with the price of the bid; and (e) prevent corruption.  

                                                                                                      • The Bill also defines a Code of Integrity for the procuring entity or Central Purchase Organization (CPO) as well as the bidders.  It prohibits acceptance of bribe, collusion, misrepresentation, coercion or threat, and obstruction in the auditing process of the procurement made.
                                                                                                      • The procuring entity shall first determine the need for the procurement and estimate the cost of the procurement based on certain specified matters.  It may publish information regarding planned procurements.
                                                                                                      • The CPO shall not limit participation of bidders or discriminate against or amongst bidders except for the protection of public order and morality, animal or plant life, intellectual, national security.  The central government may make procurement mandatory from certain bidders only on the grounds of promotion of domestic industry, socio economic policy, or other considerations in public interest.
                                                                                                      • The procuring entity may specify certain requirements for the qualification of bidders.  It may also engage in a pre-qualification process prior to inviting bids.   The pre-qualification shall ordinarily be for a single procurement.  
                                                                                                      • The CPO may maintain a panel of registered bidders to help identify reliable bidders for certain class of procurements. 
                                                                                                      • The procuring entity may make modifications to the bidding document or issue clarifications before the last date of submission of bids.  It may allot extension of time for submitting the bids if the clarifications need to be taken into account while submitting the bids. 
                                                                                                      • The evaluation criteria of the procurement bids shall include among other factors the price; cost of operating, maintaining, and repairing the goods; time for delivery and completion; terms of payment and guarantee; and qualities such as reliability, and functional competence.
                                                                                                      • The Bill provides for exclusion of a bid if the procuring entity determines that the bidder is not qualified; bid contains false information; conflict of interest involved; a bribe or gratification given by a bidder; etc.
                                                                                                      • The six methods of procurement listed in the Bill are (a) open competitive bidding, (b) limited competitive bidding, (c) single source procurement, (d) two-stage bidding, (e) electronic reverse auction, and (f) request for quotation and stock purchase.
                                                                                                      • The Bill provides for a Central Public Procurement Portal to ensure transparency in the procurement process.  Information such as pre-qualification document and details of bidders shall be displayed on the Portal.
                                                                                                      • The central government shall constitute one or more independent procurement redressal committees.  Any prospective bidder aggrieved by the decision of the CPO may file an application with such a committee. 
                                                                                                      • The Bill states different degree of penalties for offences such as taking gratification in respect of procurement, interference with the process, making vexation, frivolous or malicious complaints, and abetment of offences.
                                                                                                      • The central government shall debar a bidder if he has been convicted of an offence under Prevention of Corruption Act, 1998 and the IPC.  A bidder shall be debarred from the procurement process if he breaches the code of integrity for a period not exceeding two years.

                                                                                                      Bill

                                                                                                      Date of introduction

                                                                                                      Status

                                                                                                      Brief description

                                                                                                      The Lokpal and Lokayuktas Bill, 2011 (Listed for passing) December 22, 2011 Passed by Lok Sabha on 27 Dec 2011. Report of Rajya Sabha Select Committee submitted on November 23, 2012.It seeks to establish the office of the Lok Pal at the centre and Lokayuktas in states for inquiring into complaints against certain public servants.The Bill once passed shall be applicable to states if they give their consent to its application.
                                                                                                      The Whistle Blowers Protection Bill, 2011 (Listed for passing) August 26, 2010 Passed by Lok Sabha on December 27, 2011. Pending in Rajya SabhaIt seeks to protect whistleblowers (person making a disclosure related to acts of corruption, misuse of power or criminal offence).Under the Bill any person including a public servant may make such a disclosure to the Central or State Vigilance Commission.The identity of the complainant shall not be disclosed.
                                                                                                      The Benami Transactions (Prohibition) Bill, 2011 August 18, 2011 Standing Committee submitted its Report on June 26, 2012The Bill prohibits all persons from entering into benami transactions (property transactions in the name of another person).Any benami property shall be confiscated by the central government.It seeks to replace the existing Benami Transactions (Prohibition) Act, 1988.
                                                                                                      The Prevention of Bribery of Foreign Public Officials and Officials of Public International Organisations Bill, 2011 (Listed for passing) March 25, 2011 Standing Committee  submitted its Report on March 29, 2012Indiais a signatory to the UN Convention against corruption. The Bill is necessary for India to ratify the Convention.The Bill makes it an offence to accept or offer a bribe to foreign public officials and officials of public international organizations in order to obtain or retain international business
                                                                                                      The Right of Citizens for Time Bound Delivery of Goods and Services and Redressal of their Grievances Bill, 2011 December 20, 2011 Standing Committee submitted its Report on August 28, 2012It requires every public authority to publish a citizen charter within six months of commencement of the Act.The charter should detail the goods and services to be provided and the timeline for their delivery.
                                                                                                      The Electronic Delivery of Services Bill, 2011 December 27, 2011 Standing Committee submitted its Report on August 30, 2012The Bill requires all public authorities to deliver all public services electronically within a maximum period of eight years.There are two exceptions to this requirement: (a) service which cannot be delivered electronically; and (b) services that the public authorities in consultation with the respective Central and State EDS Commissions decide not to deliver electronically.
                                                                                                      The Prevention of Money-Laundering (Amendment) Bill, 2011 (Listed for passing) December 27, 2011 Standing Committee submitted its Report on May 9, 2012The Bill Amends the Prevention of Money Laundering Act, 2002.This Bill widens the definition of offences under money laundering to include activities like concealment, acquisition, possession and use of proceeds of crime.It provides for the provisional attachment and confiscation of property (for a maximum period of 180 days).
                                                                                                      The National Identification Authority of India Bill, 2010 December 3, 2010 Standing Committee  submitted its Report on December 13,  2011The Bill seeks to establish the National Identification Authority of India to issue unique identification numbers (called 'Aadhaar') to residents ofIndia.Every person residing inIndia(regardless of citizenship) is entitled to obtain an Aadhaar number after furnishing the required information.The number shall serve as an identity proof.  But not as a citizenship proof.
                                                                                                      The Judicial Standards and Accountability Bill, 2010 December 1, 2010 Passed by Lok Sabha on March 29, 2012; Pending in Rajya SabhaIt replaces the Judges (Inquiry) Act, 1968.  It provides for enforceable standards for the conduct of High Court and Supreme Court judges.The Bill requires judges and their spouses and children to declare their assets and liabilities.  It also establishes a process for the removal of judges of Supreme Court and High Court
                                                                                                      The Public Procurement Bill, 2012 May 14, 2012 Standing Committee Report pendingThe Bill seeks to regulate and ensure transparency in the procurement process.  It applies to procurement processes above Rs 50 lakh.The procuring entity shall adhere to certain standards such as (a) ensuring efficiency and economy; and (b) provide fair and equitable treatment to bidders.

                                                                                                      Sources: Respective Bills, PRS Legislative Research





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