- SAMDARIYA

Essential Commodities Act

Last week, the Union food minister talked about considering imposing limits on retail prices of certain essential commodities. While India is a market economy where prices are ostensibly decided by demand and supply, certain laws empower the Centre to intervene in the market to protect consumer interests. The Essential Commodities Act (ECA) is one such key law.

What is it?

The ECA was enacted way back in 1955. It has since been used by the Government to regulate the production, supply and distribution of a whole host of commodities it declares ‘essential’in order to make them available to consumers at fair prices.

The list of items under the Act include drugs, fertilisers, pulses and edible oils, and petroleum and petroleum products. The Centre can include new commodities as and when the need arises, and take them off the list once the situation improves.

Here’s how it works. If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period. The States act on this notification to specify limits and take steps to ensure that these are adhered to. Anybody trading or dealing in a commodity , be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.

A State can, however, choose not to impose any restrictions. But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity. This improves supplies and brings down prices. As not all shopkeepers and traders comply, State agencies conduct raids to get everyone to toe the line and the errant are punished. The excess stocks are auctioned or sold through fair price shops.

Why is it important?

The ECA gives consumers protection against irrational spikes in prices of essential commodities. The Government has invoked the Act umpteen times to ensure adequate supplies.. It cracks down on hoarders and black-marketeers of such commodities.

But there is another side to the story. Given that almost all crops are seasonal, ensuring round-the-clock supply requires adequate build-up of stocks during the season. So, it may not always be possible to differentiate between genuine stock build-up and speculative hoarding. Also, there can be genuine shortages triggered by weather-related disruptions in which case prices will move up. So, if prices are always monitored, farmers may have no incentive to farm.

With too-frequent stock limits, traders also may have no reason to invest in better storage infrastructure. Also, food processing industries need to maintain large stocks to run their operations smoothly. Stock limits curtail their operations. In such a situation, large scale private investments are unlikely to flow into food processing and cold storage facilities.

Why should I care?

Without the ECA the common man would be at the mercy of opportunistic traders and shopkeepers. It empowers the government to control prices directly too. The recent amendment to the Legal Metrology (Packaged Commodities) Rules 2011 is linked to the ECA. The Government can fix the retail price of any packaged commodity that falls under the ECA.

Ravi shankar, [20.09.16 20:23]
Draft National Education Policy:

The vision of the draft NEP is an education system that ensures quality education and learning opportunities for all.
Key policy initiatives highlighted in the draft NEP include:

 Pre-school education: A program for pre- school education for children in the age group of four to five years will be implemented in coordination with the Ministry of Women & Child Development.

 Learning outcomes in school education: Under the Right of Children to Free and Compulsory Education Act, 2009, norms for learning outcomes will be developed and applied uniformly to both private and government schools. The presently existing no-detention policy (promoting all students of a class to the next class) will be amended and limited up to Class 5. At the upper primary stage (Class 6 onwards), the system of detention will be restored.

 Examination reforms: In order to reduce failure rates in class 10, examination for the subjects of mathematics, science and English in class 10 will be conducted at two levels, Part A at a higher level and Part B at a lower level. Students who wish to opt for the vocational stream or courses for which mathematics, science and English are not compulsory, will be able to opt for Part B level examination.

 Teacher development: At the national level, a Teacher Education University will be set up, with a focus on teacher education and faculty development.

 Reforms and regulation in higher education: An Education Commission, comprising academic experts will be set up every five years to (i) assist the Ministry of Human Resource Development in identifying new disciplines, and (ii) undertake curriculum and assessment reforms in higher education.

 Financing education: The government will take steps for raising the investment in education sector to at least 6% of GDP.

Ravi shankar, [20.09.16 20:37]
What is Hybrid Annuity Model?

Hybrid annuity model as a mode of delivery under Public Private Partnership (PPP) arrangement for implementing highway projects. Under this model, 40% of the project cost will be provided by the government as construction support to private developers. The balance 60% shall initially be financed by the private developer. This amount will later be recovered from the government through annuity payments over a period of time along with interest on the amount.

The private partner is responsible for designing, building, operating and transferring the project at the end of the operations period. The developer is insulated from traffic and inflation risks, which are looked after by the implementing agency of the Ministry, the National Highway Authority of India (NHAI).

The highways sector has been facing difficulties in the implementation of projects through the PPP mode due to lack of availability of equity in the market. The hybrid annuity model decreases the initial capital outflow for NHAI as bulk of the financing is done through annuity payments. Additionally, developers can reduce equity in investments as 40% of the construction cost is borne by the implementing agency.

Ravi shankar, [20.09.16 22:04]
Model Bilateral Investment Treaty :

The Cabinet approved the Model Text for the Bilateral Investment Treaty (BIT) in Dec,2015. The Model Text replaces the existing Model Indian BIT of 1993.
The BIT aims to protect Indian investors in a foreign country and foreign investors in India. Key features of the Model Text of the BIT include:

 Investment: An investment is defined as an enterprise organized and operated by an investor, and with characteristics such as commitment of capital or other resources, expectation of gain or profit, an assumption of risk, etc.

 Applicability: The treaty would apply to measures adopted by a party regarding investments of another party in its territory. It will not apply to matters of government procurement, taxation laws, subsidies, compulsory licenses regarding intellectual property, and services supplied by government.

 National treatment: Each party to the treaty will treat investors or investments of the other party as favourably as its own investors, in similar circumstances with respect to management, conduct, operation, sale, etc.

 Expropriation: Neither party to the treaty may nationalise or expropriate an investment unless it is done for reasons of public purpose, in accordance with law and after the payment of compensation.

 Dispute settlement mechanism: The treaty allows for the settlement of disputes caused by a breach of treaty, followed by negotiation or arbitration. However, before
proceeding for settlement through negotiation or arbitration, the party must first exhaust domestic remedies such as courts and administrative bodies of the defending party.

Ravi shankar, [20.09.16 22:54]
Task Force on Development of Manufacturing Capabilities in each Medical Vertical in Pharmaceutical Production was released on January 2016.

Key recommendations of the Task Force include:

Communicable diseases
 Policy: Policies that restrict the distribution and availability of drugs for communicable diseases must be reviewed. In case Active Pharmaceutical Ingredients (API) (biologically active component of a drug) are short of supply or not manufactured in the country, special incentives must be provided for their manufacture.

 Infrastructure: Manufacture of fermentation based API have large power requirements. Further, as these APIs are not produced domestically due to their non- viability, subsidized power tariff should be provided to them.

Bio-pharmaceuticals and Non Communicable Diseases
 Policy: A Policy must be developed for voluntary collection of plasma (used for separation of components of plasma). A mechanism must also be developed for using expired blood samples/excess plasma.

 Pricing and Infrastructure: The existing vaccines under National List of Essential Medicines and price control must be reviewed. The supply and distribution system of medicines for non-communicable diseases are weak and fragmented, and need to be strengthened accordingly.

 Regulatory: A fast track mechanism (a single window system) for granting licenses for the manufacture of vaccines must be developed. Presently, in case of bio- pharmaceuticals, parallel submission and review is required from Review Committee on Genetic Manipulation and Drug Controller General of India. The approval pathway and time must be reviewed.

Ravi shankar, [20.09.16 23:18]
Citizenship [Amendment] Bill, 2016

 The Citizenship Act, 1955 provides various ways in which citizenship may be acquired. It provides for citizenship by birth, descent, registration, naturalisation and by incorporation of territory into India. In addition, it regulates registration of Overseas Citizen of India Cardholders (OCIs), and their rights. An Overseas Citizen of India is entitled to some benefits such as a multiple-entry, multi-purpose life- long visa to visit India.

 Definition of illegal migrants: The Act prohibits illegal migrants from acquiring Indian citizenship. It defines an illegal migrant as a foreigner: (i) who enters India without a valid passport or travel documents, or (ii) stays beyond the permitted time.

 The Bill amends the Act to provide that that the following groups of persons will not be treated as illegal migrants: (i) Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Afghanistan, Bangladesh and Pakistan, (ii) who have been exempted from provisions of the Passport (Entry into India) Act, 1920, and the Foreigners Act, 1946 by the central
government. The 1920 Act mandates foreigners to carry passport, while the1946 Act regulates the entry and departure of foreigners in India.

 Citizenship by naturalisation: The Act allows a person to apply for citizenship by naturalisation, if the person meets certain qualifications. One of the qualifications is that the person must have resided in India or been in service of the central government for at least 11 years before applying for citizenship.

 The Bill creates an exception for Hindus, Sikhs, Buddhists, Jains, Parsis and Christians from Afghanistan, Bangladesh and Pakistan, with regard to this qualification. For these groups of persons, the 11 years’ requirement will be reduced to six years.

 Cancellation of registration of OCIs: The Act provides that the central government may cancel registration of OCIs on certain grounds. These include: (i) if the OCI has registered through fraud, or (ii) within five years of registration has been sentenced to imprisonment for two years or more, or (iii) it becomes necessary in the interest of sovereignty and security of India, etc. The Bill adds one more ground for cancelling registration, that is, if the OCI has violated any law that is in force in the country.

criticism —- it doesn't cover Srilankan Tamils, Myanmar Rohingyas