March 16, 2010
Ø Amid stiff opposition from the political parties, particularly the Left, the government on Monday decided against introducing in the Lok Sabha the Civil Liability for Nuclear Damage Bill, 2010 that provides for compensation in the event of a nuclear accident.
· Under Rule 72 of the Rule of Procedures of the Lok Sabha, any government motion that is opposed at the time of introduction has to be put to vote. Since the government lacked the numbers in the House, it decided to withdraw the Bill instead.
· What is Nuclear Liability Bill?
o Nuclear Liability Bill is one of the 3 laws that have to be enforced as part of the Indo-US 123 Deal.
o It limits the liability of the foreign manufacturers and US government to a sum of $300 million, in case of an accident.
o The remaining liability can be passed on to the Nuclear Power Corporation of India Ltd.
o The government has claimed that it is essential for India so that it can join the international convention on supplementary compensation. Even the Paris and Vienna conventions would need that.
o But, history has several pointers like Chernobyl, Three Mile Island and Bhopal Gas Tragedy where there have been wrong consequences
o Moreover, such a law goes against the principle of” Polluter Pays”
o Such a law could also be against the Article 21 of constitution that says ” Protection Of Life And Personal Liberty: No person shall be deprived of his life or personal liberty except according to procedure established by law”
o But, it has to be noted that some of the major companies have been lobbying in New Delhi and eyeing the Rs 60,000 crore nuclear reactor sector in India, some of them being General Electric, Areva, Westinghouse, and Rosatom Corp.
o The Nuclear Power Corporation of India is the nodal agency that has been talking to foreign manufacturers of power plants.
o Reliance, Tata Power and GMR have also shown interest in undertaking joint ventures with the NPCIL.
Ø The Union Cabinet on Monday cleared the Foreign Educational Institutions (Regulation of Entry and Operation) Bill, 2010, for introduction in Parliament.
· It seeks to allow foreign education providers to set up campuses in the country and offer degrees.
· The Foreign Universities Bill, 2010, has been pending for the last four years owing to opposition from various quarters, including the Left parties, over certain provisions.
· Last year, it was referred to a Committee of Secretaries which brought modifications to certain provisions.
· The Bill was approved by the Cabinet, presided over by Prime Minister Manmohan Singh, without any change.
· It prescribes an eight-month, time-bound format for granting approval to foreign educational institutions to set up campuses.
· Finally, they will be registered with the University Grants Commission or any other regulatory body to be put in place that will scrutinise the proposals of the aspiring institution as per India's priorities and advise the government whether to allow it to operate in India.
· As for the reservation policy in the higher educational institutions, the law of the land will prevail.
· Though 100 per cent foreign direct investment through the automatic route is permitted in the education sector since 2000, the legal structure does not allow granting of degrees by foreign educational institutions here.
· Ministry of Human Resources has asked to deposit Rs. 50 crore if a foreign university wants to start its venture in India.
· But what are the advantages?
o The one obvious advantage is the better standard that is expected from a foreign university.
o There are reports claiming that the academicians would be able to get higher salary
o But, it is to be understood that apart from these uncertain advantages, there can’t be any solid rationale behind the move.
· Foreign universities might come to India only if their profit is allowed to be taken back home.
· Moreover, the cost of education would also be out of reach for the larger section of the society.
March 17, 2010
Ø Several academicians have criticised the Council of Boards of School Education (COBSE) for pushing for a common curriculum in science and mathematics across the country.
· Describing the move as an “overstep” of its role on the part of the Council, a joint statement issued by four academicians have raised questions over the preparation of the curriculum by the COBSE, which is the coordinating body for school boards in the country.
· The COBSE last month prepared a common core curriculum for science and mathematics for the Plus 2 stream and got it approved by the States.
· While it is true that the apparent difference between several boards of education would be solved by this step, the real question would be are the students really prepared for such a move.
· Several people might prefer the old school of education.
Ø The Supreme Court-appointed Central Vigilance Committee (CVC) has slammed the Public Distribution System as one of the most corrupt sectors, saying the root cause of its failure in several States is political interference.
· PDS is an important factor in ensuring food security.
· In the context of national food security and poverty alleviation, it is essential to take a look at the ``efficiency and efficacy'' of the public distribution system (PDS), which has been operating as the food access mechanism for several decades.
· It was the compulsions at the time of World War II that forced the then British Government to introduce the first structured public distribution of cereals in India through the rationing system -- sale of a fixed quantity of ration (rice or wheat) to ent itled families (ration cardholders) in specified cities/towns.
· When the War ended, India, like many other countries, abolished the rationing syste m in 1943.
· In the face of renewed inflationary pressures in the economy immediately after Independence, the Government had to reintroduce rationing in 1950.
· India retained public distribution of foodgrains as a deliberate social policy, when it embarked on the path of planned economic development in 1951.
· Towards the end of the First Plan (1956), rationing had started losing its relevance due to comfortable foodgrains availability.
· But as the supply dropped and demand swelled, the Government had to reintroduce PDS.
· What is the difference between rationing and PDS?
o In rationing, a particular amount, usually restricted to a small amount, of resource is allocated to a particular person or family, not always at a lower price.
o In PDS, the prices of the resources are reduced and is made available for the poorer sections of the society.
· The creation of the Food Corporation of India and the Agricultural Prices Commission in 1965 consolidated the position of the PDS.
· The Government was now committed to announce a minimum support price for wheat and paddy and procure quantities that could not fetch even such minimum prices in the market.
· The 3 fold aims of PDS were:
o Providing foodgrains and other essential items to vulnerable sections of society at reasonable (subsidised) prices
o Having a moderating influence on the open market prices of cereals
o Ensuring equity in the matter of distribution of essential commodities
· The greatest achievement of PDS was claimed to be ``preventing any more famines in India''.
· But, still some demerits exist
o The urban and pro-rich bias of the system
o Its ineffectiveness in reaching the poor
o The lack of effective contribution towards household food security
o PDS is not cost-effective and its operations are too costly due to `wasteful' movements of grain and high storage losses.
o Another valid deficiency was its marginal impact, as far as income transfer to poor households is concerned.
o Obvious fiscal stress on Government
· The PDS system was revamped and the Targeted PDS (targeting the marginalised sections of the society) was launched.
· But, still the system faced several problems.
o The monthly quota of rice/wheat was less in several cases.
o The methodology used in identifying the BPL families was a doubt.
o The PDS faces several problems based on how well off the area is, for e.g., regions like Kerala do well.
o The cost of operation is too high.
o Welfare gain from PDS is negligible
· Despite such a huge cost to the exchequer and burden to the taxpayer, PDS and, by extension, the FCI, have not achieved any of the primary requirements of food security and poverty alleviation.
· This is primarily because of the vast chasm that exists between policy formulation and implementation.
· So, what is the alternative?
o Given the liberalised atmosphere and comfortable foodgrain situation, it is better to rely on the personal involvement of the stakeholders, who are the producers, and the open market mechanism that influences the consumption for India's food security.
o At the same time, the farmer and the consumer need to be protected against the vagaries of production and the market forces to enhance agricultural productivity and ensure fair prices.
o The delivery system would also be efficient since it has to be competitive and competent.
o For the genuinely needy, `food vouchers/stamps' could be supplied through the Panchayat Raj or local government machinery that could be strengthened and empowered for the purpose.
March 18, 2010
Ø A bonanza in the shape of expanded piped natural gas (PNG) for households and compressed natural gas (CNG) infrastructure for transportation and clean environment awaits lakhs of consumers with the government contemplating empowering the Petroleum and Natural gas Regulatory Board (PNGRB) to issue retail expansion licences to both private and public players.
· The first phase will entail expansion of the CNG and PNG network to 200 cities identified by the private and public sector companies, and reaching out to industrial clusters and power plants.
· With CNG expansion, especially in public transport, environmental concerns and vehicular pollution are also likely to be addressed in the long run.
Ø The maritime security of the country's west coast got a boost on Wednesday with the induction of a state-of-the-art new generation Offshore Patrol Vessel (OPV) — ICGS ‘Vishwast' — into the Indian Coast Guard (ICG).
· ‘Vishwast,' which means ‘trustworthy,' is an OPV indigenously designed in-house and built by the Goa Shipyard Limited (GSL), the south Goa-based Defence shipyard, and was formally commissioned into the ICG by Defence Minister A.K. Antony at a ceremony at the GSL on Wednesday.
Ø A framework for cooperation on trade and investment was on Wednesday signed by Indian Minister of Commerce and Industry Anand Sharma and U.S. Trade Representative Ronald Kirk.
· The agreement aims to strengthen bilateral cooperation between India and the U.S., building on rapid growth between the two countries in recent years.
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