ONE NATION ONE CHALLAN
1.Context
The Gujarat government recently told the High Court, which was hearing a public interest litigation seeking the setting up of virtual traffic courts in the state, that it was already in the process of doing so under the ‘One Nation One Challan’ initiative
2.About One Nation, One challan
- One Nation, One Challan is an initiative of the Ministry of Road Transport and Highways to bring all related agencies, such as the traffic police and the Regional Transport Office (RTO), on one platform, to enable seamless collection of challans as well as data transfer
- The integrated system involves detection of traffic violations through the CCTV network and getting the registration number of the erring vehicle from applications like VAHAN (detecting the vehicle’s ownership details) and SARATHI (compilation of driving licenses)
- An e-challan is then generated with the relevant penalty amount, and sent to the mobile number linked with the vehicle
3.Integration
- So far, if police had to penalise someone from a different state using the CCTV network, we were unable to find details of the vehicle ownership, as the database was not integrated
- Integration of all the states’ RTO data and traffic police data with the support of National Informatics Centre (NIC) servers
- If someone coming from Chhattisgarh is captured violating traffic regulations on CCTV, the vehicle’s registration number and its related data can be accessed by the Ahmedabad police, and the challan will be sent directly to the mobile number mentioned at the time of the vehicle’s registration
- Also, e-challans so far are delivered through mobile phone SMSes, or through post when the phone number is not available
4.Virtual traffic courts
- If someone doesn’t pay the challan amount within 90 days, the challan will be automatically forwarded to a virtual court and proceedings will be initiated
- Summons will be sent on the mobile phone of the offender. If the fine is still not paid, further legal proceedings will follow
- Virtual courts are aimed at eliminating the presence of litigants in the court
- An accused can search their case on the virtual court’s website. Upon successful payment of fine, the case will be shown as disposed of
- For now, one court is in the process of being designated as a virtual court for the whole of Gujarat court number 16 of Ahmedabad city sessions court, which will deal dedicatedly with the ‘One Nation, One Challan’ cases
- In a petition before the Gujarat HC, it has been pointed out that in Surat city alone, over 49 lakh e-challans had been issued from April 2013 to August 2020
- Accumulating a fine of Rs 136 crore, of which Rs 122 crore is yet to be recovered
Source:pib
AGRICULTURE AND EMPLOYMENT
1. Context
Two recent sets of data released by the National Sample Survey Office (NSSO) and the National Statistical Office (NSO) offer insights into the process of structural transformation in the Indian economy, especially in the agriculture and manufacturing sectors.
2. Key points
- Economists refer to structural transformation as basically a compositional shift that entails the transfer of surplus labour from agriculture to sectors where productivity (output per worker) and average incomes are higher, particularly in manufacturing and modern services.
- The NSSO's latest annual Periodic Labour Force Survey (PLFS) report for 2021-22 (July-June) shows the farm sector's share in the country's employed labour force at 45.5 per cent.
- That's down from 46.5 per cent in 2020-21, but still higher than 2018-19 low of 42.5 per cent.
- The effects of the pandemic-induced economic disruptions, which had forced a reserve migration to the farms, haven't fully subsided.
3. Stalled transformation
- Chart 1 shows the share of agriculture in the total workforce over a longer period, based on the previous year's PLFS reports (also called "Employment and Unemployment surveys until 2011-12). That share fell from 64.6 per cent in 1993-94 to 42.5 per cent in 2018-19.
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- The biggest decline from 58.5 per cent to 48. 9 per cent happened between 2004-05 and 2011-12.
- During these seven years, the workforce engaged in farming registered for the first time in India's history, a fall even in absolute terms from 268.6 million to 231. 9 million.
- The share of the labour force employed in manufacturing too peaked at 12. 6 per cent in 2011-12.
- Since 2011-12, this structural transformation has slowed, with the share of agriculture in employment not falling fast enough and rising after 2018-19.
- The share of manufacturing has dropped behind even that of construction and trade, hotels and restaurants.
- In 2017-18, the latter two sectors accounted for 11. 7 per cent and 12 per cent of the total workforce respectively, as against manufacturing's 12.1 per cent. But in 2021-22, manufacturing's share, at 11.6 per cent was below that of construction (12. 4 per cent) as well as trade, hotels and restaurants (12. 1 per cent).
- In other words, the structural transformation has not just slowed it has stalled if not reversed.
- There is not much labour transfer taking place from farms to factories.
- The jobs that are getting generated outside agriculture are mostly in construction and low-paid services, whose share has overtaken that of manufacturing.
- The construction sector has now become the second-largest employer after agriculture.
- Five years ago, it was at No.4, after agriculture, manufacturing and trade, hotels and restaurants.
- Today, manufacturing has been relegated to the fourth spot.
4. Output vs. Value added
- This links up with the second set of data, which are from the NSO's first revised estimates of national income for 2021-22.
- It also contains estimates of "output" and "Value-added" by different sectors of the economy.
- Output is simply the gross value of production by an industry or sector. For the economy, it would mean the total value of all goods and services produced during a financial year.
- However, production involves the use of inputs.
- Further, the inputs for one industry are the outputs of other industries supplying it.
- To avoid double counting, one has to then, deduct the value of inputs or intermediate consumption from the value of output.
- Since the producer merely adds value to the inputs that he uses, economists consider the gross value added (GVA) and not the gross value of output (GVO), as a measure of aggregate production.
- One way to assess how much value an industry or sector creates in the process of production is by looking at the ratio of GVA to GVO.
- GVA, to repeat, is GVO at current prices minus the value of intermediate consumption.
- Chart 2 shows these ratios for various sectors in 2021-22, based on the NSO's latest revised estimate of national income.
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- It can be seen that value addition is the highest in agriculture.
- For every ₹ 100 worth of produce coming from Indian farms, Rs 80 is the value generated by those owning and working the lands.
- In 2021-22, the GVO from agriculture, forestry and fishing was estimated at ₹ 50.71 lakh crores.
- After deducting the value of intermediate consumption (₹ 10.05 lakh crores), the GVA for the sector worked out to Rs 40.66 lakh crores.
- On the other hand, value addition is the lowest, at just over a fifth, for manufacturing.
- Although the GVO from manufacturing (₹ 156.90 lakh crores) was more than three times from agriculture, the value of intermediate consumption, too, was over 12 times (₹ 122.93 crores) higher.
- As a result, the GVA by manufacturing, at Rs 33.97 lakh crores in 2021-22 was way below agriculture.
- Purchased inputs are very little in agriculture, unlike manufacturing.
- The value produced comes mostly from the land rather than the seeds, fertilisers, pesticides, diesel and electricity that farmers consume.
5. Link with employment
- High value-addition is a key reason why agriculture can employ so many people.
- The sector's share in GVO the total value of all goods and services produced by the country was only 11.4 per cent in 2021-22.
- When measured in terms of value-added or GVA though, the share rose to 19 per cent.
- It was the other way around for manufacturing: its share in overall GVO was as high as 35. 4 per cent while being just 15.8 per cent relative to GVA.
- However, even taking into account high value-addition, a sector generating 19 per cent of income accruing to the primary factors of production, namely the owners of the land (farmers), labour (agricultural workers) and capital (lenders) cannot support 45 per cent of the country's population.
- Moreover, the GVA -GVO ratio is not a measure of productivity.
- An agriculturalist may be adding more value to every unit of input he consumes than a manufacturer.
- But productivity is a function of output per worker or per unit of land which is low in agriculture compared to modern manufacturing and services.
- It explains why the average farmer earns less than his urban counterpart.
- To earn more, the farmer's productivity has to go up which means producing more on the same land with fewer hands.
- At the end of the day. there is no escaping the fact that India has too many people in agriculture.
- They need to be enabled to find employment in other sectors, which will, in turn, raise agriculture's productivity.
For Prelims & Mains
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For Prelims: Agriculture, Employment, Unemployment, NSO, GVA, GVO, NSSO
Previous year questions
1.Disguised unemployment generally means (2013) (a) large number of people remain unemployed Ans: (c) For Mains: Previous year questions: 1.Can the strategy of regional-resource based manufacturing help in promoting employment in India? (2019) 2.Normally countries shift from agriculture to industry and then later to services, but India shifted directly from agriculture to services. What are the reasons for the huge growth of services vis-a-vis industry in the country? Can India become a developed country without a strong industrial base? (2014) Practice question
1. What is India’s labour force? Discuss the reasons for jobs shifting from agriculture. (250 Words)
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Source: The Indian Express
GOVERNORS AND STATES
1.Context
Solicitor General Tushar Mehta told the Supreme Court Tuesday that Punjab Governor Banwarilal Purohit has summoned the state Assembly for a budget session. Mehta’s statement came minutes before the Supreme Court was set to hear a challenge by the Punjab government against Governor Purohit, over his refusal to summon the Budget session of Vidhan Sabha
2. Can Governor refuse to summon the Assembly
- The Governor has to act according to the aid and advice of the council of ministers. Constitutionally, the office of the Governor has little discretion to not act on the cabinet’s advice
- Under Article 174, a Governor shall summon the House at a time and place, as she or he thinks fit. Article 174 (2) (a) says a Governor may from “time to time” prorogue the House and 174 (2) (b) allows her or him to dissolve the Legislative Assembly
- Article 163(1) of the Constitution says that “there shall be a council of Ministers with the Chief Minister at the head to aid and advise the Governor in the exercise of his functions, except in so far as he is by or under this constitution required to exercise his functions or any of them in his discretion.”
- A joint reading of the two provisions leaves the Governor with minimal discretion in summoning the house
- Governor Purohit (Punjab governor) has cited Article 167 of the Constitution, which relates to the duties of the Chief Minister in furnishing information to the Governor. Governor Purohit’s questions to CM Mann on appointments are under this provision
- The provision states that “it shall be the duty of the Chief Minister of each state to communicate to the Governor of the state all decisions of the Council of Ministers relating to the administration of the affairs of the state and proposals for legislation; to furnish such information relating to the administration of the affairs of the state and proposals for legislation as the Governor may call for; and, if the Governor so requires, to submit for the consideration of the Council of Ministers any matter on which a decision has been taken by a Minister but which has not been considered by the Council.”
- However, there are a few instances when the Governor can act independently on summoning the House
- For example, when the chief minister has lost the support of the House and his strength is debatable, then the Governor need not wait for the advice of the council of ministers to hold a floor test
3. Can the government summon the House without Governor's approval
- Procedure as per Article 174 of the Constitution requires the Governor to summon the House. The council of ministers approves the government’s decision of convening the House
- Additionally, Article 175 provides for the right of the Governor to address and send messages to the House
- The Governor may address the Legislative Assembly and may for that purpose require the attendance of members.
- The Governor may send messages to the House, whether with respect to a Bill then pending in the Legislature or otherwise, and a House to which any message is so sent shall with all convenient dispatch consider any matter required by the message to be taken into consideration
- As per Article 176, the Governor has to address the house at the commencement of the first session after each general election to the Legislative Assembly and at the commencement of the first session of each year.
- The government has to make a provision regulating the procedure of the House for the allotment of time for discussion of the matters referred to in such address
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Previous Year Questions:
1.Which of the following are the discretionary powers given to the Governor of a State? (2014)
Select the correct answer using the code given below. A.1 and 2 only
B.1 and 3 only
C.2, 3 and 4 only
D.1, 2, 3 and 4
Solution ( B)
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For Prelims: Governor, President of India, Council of Ministers
For Mains: 1. Governor has no discretionary powers. Do you agree?
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Source: indianexpress
FOREST RIGHTS ACT
1. Context
After the National Commission for Scheduled Tribes (NCST) invoked its constitutional power to requisition detailed Forest Rights Act implementation reports from the Supreme Court, the Registrar has ordered the release of documents to the NCST.
2. Key Points
- The ST Commission is caught in a row with the Union Environment Ministry over the latest Forest Conservation Rules (FCR), 2022.
- The row is over the potential violation of provisions enshrined in the Scheduled Tribes and Other Forest Dwellers (Recognition of Forest Rights) Act, 2006 was dubbed the Forest Rights Act (FRA).
3. The involvement of NCST in the Act
- The Ministry of Environment, Forests and Climate Change in June 2022 notified the forest (Conservation Rules, 2022, which prescribed the mechanism for the diversion of Forest land for non-forest purposes.
- These amended rules have omitted a clause (Present in 2014 and 2017 Rules) that explicitly required any proposal to mandatorily have the consent of local tribespeople and Other Traditional Forest Dwellers (OTFDs) of the area, before proceeding for Stage 1 clearance.
- The FCR, 2022 has allowed applying entities to go for the consent of locals, represented by the Gram Sabha after Stage 1 or even after Stage 2 clearance.
- According to the FRA, 2006, in case of a dispute over forest land, precedence has to be given to the rights of STs and OTFDs, who live in and off the forest and its resources, over any other party.
4. NCST demands
- In September 2022, NCST Chairperson Harsh Chouhan shot off a letter to Environment Minister Bhupendra Yadav, highlighting the potential consequences of FCR, 2022, recommending that they be put on hold and the previous Rules, which provided for the consent clause, be strengthened.
- The ST panel argued that the previous versions of the Rules provided a legal space for ensuring the completion of the processes for recognition and vesting of rights under the FRA in areas where forests are being diverted.
- The ST Commission noted that it made little sense to take the consent of tribals and forest dwellers after an applicant had got Stage 1 clearance.
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By then, the applicant would be invested in the project and would then have the incentive to "pursue the State It said governments or Union Territories" to divert the land at the earliest.
The NCST added that the FCR, 2022 provided for compensatory Afforestation, but nowhere did it prescribe safeguards or a mechanism for compliance with FRA.
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- Further, the NCST's Working Group found that FRA compliance was in trouble even under the old rules.
It said currently, nearly 25, 000-30, 000 hectares of forest land were being diverted every year. - It cited a study by the Centre for Environment and Development, ATREE to note: " Out of 128 applications for forest diversion for mining, over 100 had been processed between 2009 and 2018".
- It added that 74 proposals had Stage 2 approval, 46 had Stage 1 approval (in principle), with just five rejected and four closed for other reasons.
- None of the rejections was for non-compliance with FRA.
- The study also found that 14 of these cases (all post-2014) had been cleared with an FRA compliance report, despite, this being far from the "ground reality".
5. About NCST
- The National Commission for Scheduled Tribes is a constitutional body that was established by the Constitution (89th Amendment) Act, 2003.
- The Commission is an authority working for the economic development of Scheduled Tribes in India.
This amendment replaced the National Commission for Scheduled Castes and Scheduled Tribes with two distinct commissions which are:
- National Commission for Scheduled Castes (NCSC)
- National Commission for scheduled Tribes (NCST)
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Article 366 (25) of the Constitution, Scheduled Tribes are those communities that are scheduled in by article 342 of the Constitution.
Also, Article 342 of the Constitution says that: The Scheduled Tribes are the tribes or tribal communities or part of or groups within these tribes and tribal communities which have been declared as such by the President through a public notification.
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5.1. Composition of NCST
- The NCST consists of one chairperson, one vice-chairperson and three full-time members.
- Out of the three members, there should compulsorily be one lady member.
- Tenure of the members is 3 years.
5.2. Functions of NCST
- It investigates and monitors issues related to safeguarding the provisions for Scheduled Tribes under the Constitution and evaluating the working of those safeguards.
- NCST will inquire into specific complaints concerned with the deprivation of rights and safeguards of the STs.
- The commission participates and advises on the planning process for the socio-economic development of the STs and also evaluates the progress of the various developmental activities.
- The President will be presented with an annual report on the working of those safeguards.
- Apart from annual reports, other reports also will be submitted to the President as and when necessary.
- The Commission will also give reports on what measures are to be taken by both the central and various state governments for the effective execution of the measures and safeguards for the protection, development and welfare of the STs.
- Other functions of NCST are related to the welfare, protection, development and advancement of the STs.
6. Forest Rights Act
- The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, commonly known as the Forest Rights Act of India, is often referred to as the Tribal Rights Act or the Tribal Land Act.
- It was enacted in 2006 and recognises the rights of tribal communities that live in the forest as well as other traditional forest dwellers to the forest resources that were essential to their ability to provide for a variety of needs, including subsistence, habitation and other sociocultural requirements.
- The forest management policies, including the Acts, Rules and Forest Policies of Participatory Forest Management policies in both colonial and post-colonial India, did not, till the enactment of this Act., recognize the symbiotic relationship of the STs with the forests, reflected in their dependence on the forests as well as in their traditional wisdom regarding conservation of the forests.
| The Act encompasses Rights of Self-cultivation and Habitation which are usually regarded as Individual rights; and Community Rights such as Grazing, Fishing and access to Water bodies in the forest, Habitat Rights for PVTGs, Traditional Seasonal Resources access to Nomadic and Pastoral Communities, access to biodiversity, community right to intellectual property and traditional knowledge, recognition of traditional customary rights and right to protect, regenerate or conserve or manage any community forest resource for sustainable use. |
- It also provides rights to the allocation of forest land for developmental purposes to fulfil the basic infrastructural needs of the community.
- In conjunction with the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Settlement Act, 2013 FRA protects the tribal population from eviction without rehabilitation and settlement.
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The Act further enjoins upon the Gram Sabha and rights holders the responsibility of conservation and protection of bio-diversity, wildlife, forests, adjoining catchment areas, water sources and other ecologically sensitive areas as well as to stop any destructive practices affecting these resources or cultural and natural heritage of the tribals.The Gram Sabha is also a highly empowered body under the Act, enabling the tribal population to have a decisive say in the determination of local policies and schemes to impact them.
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Thus the Act empowers the forest dwellers to access and use the forest resources in the manner that they were traditionally accustomed, to protect, conserve and manage forests, protect forest dwellers from unlawful evictions and also provides for basic development facilities for the community of forest dwellers to access facilities of education, health, nutrition, infrastructure etc.
6.1. Objective
- To undo the historical injustice that occurred to the forest-dwelling communities
- To ensure land tenure, livelihood and food security of the forest-dwelling Scheduled Tribes and other traditional forest dwellers
- To Strengthen the conservation regime of the forests by including the responsibilities and authority of Forest Rights holders for sustainable use, conservation of biodiversity and maintenance of ecological balance.
For Prelims & Mains
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For Prelims: Forest Rights Act, NCST, NCSC, Forest Conservation Rules 2022, Traditional Forest Dwellers,
For Mains:
1.Discuss the powers and functions of the National Commission for Scheduled Tribes in protecting the rights of the Forest-dwellers in India. (250 Words)
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Source: The Hindu and Ministry of Tribal Affairs
INDEX FUNDS
1.Context
Following a report by U.S based research firm Hindenburg levelling several allegations against the Adani group, global index providers like MSCI are reviewing some of the stocks inclusion in its indices that are replicated by many foreign portfolio managers
2. What are index funds
- With thousands of stock traded in stocks around the world their prices will move in different directions most observers assess a market's general trajectory amid these individual price swings by looking at broader benchmark indices.
- For example, Sensex represents 30 largest and most actively traded stocks on the Bombay Stock Exchange (BSE)
- While economists and governments look at market indices movements as a barometer of the confidence levels in the economy individual investors and fund managers use them as a gauge to compare their own portfolio's performance
- Mutual funds portfolio managers often pitch to prospective investors that their investment strategies have outperformed Sensex or other relevant benchmarks
- For retail investors selecting stocks or mutual fund schemes has always been a challenge
- While index funds and exchange-traded funds (ETF) have been an option for Indian investors for about two decades, they have seen exceptional growth in assets since 2015
- About 16% of the roughly 41 lakh crore assets managed by India's mutual funds are parked in Index funds and ETF
3.How indices are made
- Indices could be based on different industry sectors, size of companies (Small-cap, Mid-cap etc) and quantitative parameters like liquidity and trading volumes and the weightage assigned to each stock in an index may vary based on their market capitalisation or other gauges that index providers adopt
- NSE indices owns and manages over 350indices with 117 ETFs listed in India and 12 ETFs listed abroad using these products benchmarks
- The methodologies usually provide for a review of the index composition or cessation-specific indices owing to factors such as 'exceptional circumstances ' , ' market disruption ' or difficulty in replicating the indices
- However, they are not regulated by SEBI
4.SEBI proposal
Noting the " growing dominance of Index providers due to proliferation"of passive funds that drive capital flows towards assets that are part of particular market index, SEBI has proposed to bring them under its regulatory purview
5.About SEBI
5.1. Background
- Before SEBI came into existence, the Controller of Capital Issues was the regulatory authority; it derived authority from the Capital Issues (Control) Act, 1947.
- In April 1988 the SEBI was constituted as the regulator of capital markets in India under a resolution of the Government of India.
- Initially SEBI was a non-statutory body without any statutory power.
- It became autonomous and given statutory powers by SEBI Act 1992.
5.2. Structure of SEBI
- SEBI Board consists of a Chairman and several other whole-time and part-time members.
- SEBI also appoints various committees, whenever required to look into the pressing issues of that time.
- Further, a Securities Appellate Tribunal (SAT) has been constituted to protect the interest of entities that feel aggrieved by SEBI’s decision.
- SAT consists of a Presiding Officer and two other
- It has the same powers as vested in a civil court. Further, if any person feels aggrieved by SAT’s decision or order can appeal to the Supreme Court.
5.3. Aims associated with SEBI
- To protect the interests of investors in securities and to promote the development of, and regulate the securities market.
- It is the regulator of the securities and commodity market in India owned by the Government of India.
5.4. Functions
- SEBI is primarily set up to protect the interests of investors in the securities market.
- It promotes the development of the securities market and regulates the business.
- SEBI provides a platform for stockbrokers, sub-brokers, portfolio managers, investment advisers, share transfer agents, bankers, merchant bankers, trustees of trust deeds, registrars, underwriters, and other associated people to register and regulate work.
- It regulates the operations of depositories, participants, custodians of securities, foreign portfolio investors, and credit rating agencies.
- It prohibits insider trading, i.e. fraudulent and unfair trade practices related to the securities market.
- It ensures that investors are educated on the intermediaries of securities markets.
- It monitors substantial acquisitions of shares and take-over of companies.
- SEBI takes care of research and development to ensure the securities market is efficient at all times.
5.5. Powers of SEBI
- Quasi-Judicial: SEBI has the authority to deliver judgements related to fraud and other unethical practices in terms of the securities market. This helps to ensure fairness, transparency, and accountability in the securities market.
- Quasi-Executive: SEBI is empowered to implement the regulations and judgements made and to take legal action against the violators. It is also authorized to inspect Books of accounts and other documents if it comes across any violation of the regulations.
- Quasi-Legislative: SEBI reserves the right to frame rules and regulations to protect the interests of the investors. Some of its regulations consist of insider trading regulations, listing obligations, and disclosure requirements. These have been formulated to keep malpractices at bay. Despite the powers, the results of SEBI’s functions still have to go through the Securities Appellate Tribunal and the Supreme Court of India.
5.6. Other Powers and Functions of SEBI
- SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.
- It functions to fulfil the requirements of three categories –
- Issuers – By providing a marketplace in which the issuers can increase their finance.
- Investors – By ensuring safety and supply of precise and accurate information.
- Intermediaries – By enabling a competitive professional market for intermediaries.
- By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance.
- SEBI Chairman has the authority to order “search and seizure operations”. SEBI board can also seek information, such as telephone call data records, from any persons or entities concerning any securities transaction being investigated by it.
- SEBI perform the function of registration and regulation of the working of venture capital funds and collective investment schemes including mutual funds.
- It also works for promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.
Source: Hindu
