Saturday, August 18, 2012

HEADLINES

• To curtail the fear being generated in North-east people the Govt bans bulk SMS and MMS for 15 days; Persons arrested in Bangalore for spreading rumours
• CAG tables the report on coal allocation and public-private partnership of the Delhi airport in Parliament which both find serious loss to the exchequer

NATIONAL NEWS

• Now, coal causes a INR 1,86,000 crore loss; CAG report tabled in Parliament
  • Reeling under the impact of several scams, including 2G spectrum allocation, UPA-II was hit by another serious allegation that it had caused a Rs. 1.86 lakh crore loss to the exchequer by not ensuring transparency in coal blocks allocation during 2004-09;
  • The Prime Minister also came under scrutiny of the Comptroller & Auditor-General, whose report pointed to serious discrepancies during 2006-09, when he was holding charge of the Coal Ministry. The role of the PMO was also suspect as it delayed the introduction of competitive bidding, though the Law and Justice Ministry had cleared the process;
  • One of the biggest beneficiaries of the coal blocks allocation has been the Anil Ambani-owned Reliance Power Limited (RPL). Coming down heavily on the Ministries of Power and Coal for giving post-bid concessions to RPL for its 4000-MW Sasan mega power project (Madhya Pradesh), the CAG said this not only vitiated the bidding process but also conferred Rs. 29,033 crore in “undue benefits”. It also criticised the government for allowing RPL to use surplus coal from the blocks allotted to the Sasan plant for its other projects;
  • It turns out that the process to initiate competitive bidding began within 6 weeks of UPA-I coming to power in 2004. Ironically, the amendment to the Mines and Minerals (Development and Regulation) Act rules for auction by competitive bidding was notified as recently as February 2, 2012 — the same day that the Supreme Court, while cancelling 122 illegal 2G licenses awarded, directed an auction process to be followed for all valuable, scarce natural resources. Read the detailed chronological happenings in this article.
• Bill on Street Vendors to be introduced in Parliament
  • The Union Government on Friday approved the Street Vendors (Protection of Livelihood and Regulation of Street Vending) Bill, 2012, which seeks to protect the rights of vendors and regulate their activity in public areas. The Ministry of Housing & Urban Poverty Alleviation is expected to introduce the Bill in the ongoing session of Parliament;
  • As per the Bill, anyone over 18 years can apply and register as a street vendor with the respective Town Vending Committee (TVC) on payment of a one-time fee. Once registered, they will be given identity cards entitling them to sell their wares in specified vending zones. It would also do away with the existing licence system that has become a tool to victimise and harass street vendors in almost all municipal areas of the country;
  • The Bill contains provisions to protect and promote natural markets, weekly markets and night bazaars where vendors and hawkers can sell their wares. The proposed legislation also has clear provisions for grievance redress and transparency. The prescribed provisions and mechanisms protect vendors from confiscation of their goods and forced eviction by authorities.
• Centre tells judiciary that accountability and independence can co-exist
  • Allaying the apprehensions expressed by Chief Justice of India S.H. Kapadia, the Centre on Friday made it clear that the Judicial Standards and Accountability Bill would not in any way infringe the independence of the judiciary;
  • Justice Kapadia had said the judiciary was not afraid of laws to make judges accountable but cautioned the government not to tinker with its independence. He said “I would request the government that accountability be balanced with judicial independence. In enacting laws, the concept of judicial independence should not be lost sight of”;
  • In its response, the Centre said “The Bill has been prepared after holding wide-ranging consultations and after holding discussions with legal experts, eminent jurists and non-governmental organisations. The Bill has three parts. It lays down Judicial Standards which are derived from the Restatement of Values of Judicial Life, 1997 and have the acceptance and approval of the Full Court of the Supreme Court. It makes it mandatory for the judges to declare their assets and liabilities. It makes provisions for filing of complaints by citizens and the mechanism for their scrutiny and subsequent action for investigation or otherwise.”
• Supreme Court rules out revival of mining without rehabilitation
  • The Forest Bench of the Supreme Court on Friday made it clear that no iron ore mining operations in Karnataka shall be permitted to resume unless there was statutory clearance for mining and till reclamation and rehabilitation was implemented in full;
  • The court decision came after the Central Empowered Committee in its August 16 report said “no further direction is required regarding sale of iron ore and/or resumption of mining operations by Category A mining leases.”
• New tribunal suggested to deal with man-made disasters
  • The Union Ministry of Law & Justice has in a letter to the Union Home Ministry called for appointment of a Fatal Incidents Claims Tribunal on the lines of the Motor Accidents Claims Tribunal in every district;
  • Importantly, the Law Ministry also proposed that in the legislation “suitable provisions may also be provided for imposition of penalty by the Government on the private persons and concerns responsible for fatal incidents/accidents resulting in loss of life and injuries”. The Law Commission has published on its website a consultation paper on man-made disasters to bring in a new legislation to deal with the issue.
• Cabinet clears 20 IIITs
  • The Union Cabinet on Friday cleared a bill, which seeks to give Indian Institutes of Information Technology (IIITs) administrative autonomy and enables setting up of 20 more such institutes in the country by partnering with the public sector undertakings;
  • The Indian Institute of Information Technology (IIIT) Bill, 2012 is likely to be introduced during the ongoing monsoon session of Parliament. Once enacted, the proposed legislation will confer the status of institutes of national importance on IIITs. The establishment of each IIIT is expected cost Rs. 128 crore, with the Centre bearing 50 % of the cost and the State Govt concerned 35%. The remaining 15% will be borne by industry partners;
  • As of now, there are 4 IIITs funded by the Central Govt. These are at Gwalior, Allahabad, Jabalpur and Kancheepuram and are currently categorised as deemed universities.
• Bamboo revolution to beat back Maoists
  • Amid reports that Maoists are against according bamboo rights to Adivasis in Gadchiroli, Rural Development Minister Jairam Ramesh has asked the Chief Ministers of six Naxal-hit States to emulate the success of Mendha Lekha village in Maharashtra;
  • Mendha Lekha became the first village with Community Forest Rights (CFR) to be given transit passbooks to harvest and sell bamboo in April 2011. Since then other villages in Gadchiroli have applied for and got transit passbooks;
  • Mendha Lekha collected Rs. 93.31 lakh in bamboo sales and has been putting the funds into community development. According to a status report, 2.95 lakh bamboos were harvested over a year and the gram sabha has decided to spend 50% of the funds on forest management activities and the remaining on innovative projects;
  • However, a piquant situation arose some months ago when one of the leaders from Mendha Lekha was threatened by Maoists and asked to go slow on his campaign for CFR. Some villages have given in writing that even though they have CFR, they are not keen on acquiring transit passbooks. Ballarpur Industries Limited (BILT) also has a contract to harvest bamboo in the Gadchiroli region till 2014;
  • While Mr. Ramesh has been demanding that transit passbooks be given to villages which have CFR, Chief Minister Prithviraj Chavan has cited the agreement with BILT as a possible impediment.

INTERNATIONAL NEWS

• Assange may approach the International Court of Justice in the Hague
  • WikiLeaks chief Julian Assange could appeal to the International Court of Justice at The Hague if Britain continued to refuse him safe passage to Ecuador where he has been granted asylum.
• Punk band, Pussy riot, jailed for anti-Putin protests
  • A Moscow court on Friday sentenced to two years in prison three members of a female punk group for performing a punk prayer against Russia’s long-serving leader Vladimir Putin on the altar of Russia’s main Orthodox Cathedral earlier this year;
  • The three young musicians were practically unknown before they and two other girls, all wearing bright balaclavas, sang “Virgin Mary, Throw Putin Out” in Moscow’s Christ the Saviour Cathedral in February. The all-female band was formed last year to protest against Mr. Putin’s decision to run for President and they staged their church performance barely two weeks before the election, which saw Mr. Putin reclaim presidency;
  • Protests against the trial of the band members have been staged in dozens of cities around the world with many voices coming out in support of them.
• The U.N.’s World Food Programme said on Friday it plans to feed one million people in Syria affected by the ongoing fighting, up from its initial target of 850,000

EDITORIALS, OPINIONS & COLUMNS

• Read this editorial on the Judicial Standards and Accountability Bill
• Read this article which proposes changes to the system of selecting judges in India. Important for students of law.

ECONOMY & BUSINESS NEWS

• PM Advisory Panel pitches for bold reforms
  • The Prime Minister’s Economic Advisory Council (PMEAC), on Friday, projected a higher than hitherto anticipated growth rate of 6.7% for the current fiscal year and pitched for implementation of a slew of bold reforms aimed at containing the twin deficits on the fiscal and the current account front and return to the path of fiscal consolidation by trimming the oil and fertilizer subsidy bills, opening up of FDI in multi-brand retail and unveiling of predictable tax policies;
  • Dr. Rangarajan maintained that to accelerate growth and deal with the impact of the negative global environment, the government will have to provide a boost in investment in infrastructure, allow foreign airlines to pick up stake in domestic carriers and allow at least 49 per cent FDI in multi-brand retail so as to contain the fiscal and current account deficit;
  • With regards to the oil sector, Dr. Rangarajan pitched for “a suitable increase in the price of diesel in one or more steps, and a cap on the level of consumption of subsidised domestic LPG close to what is now being consumed by poorer households (that is, foru cylinders).” The initiatives to check petroleum subsidy would help contain fiscal deficit and deal with rising problem of crude in the international market, he said;
  • As for other major sectors, while the PMEAC made a case for focused attention on liberalising tenancy arrangements, reforming domestic markets for agricultural produce and reducing input subsidies, it said the manufacturing sector growth rate was likely to accelerate to 4.5 per cent, up from 2.5 per cent in the previous fiscal.
• Further to the wide-ranging reforms unveiled recently by the Securities and Exchange Board of India (SEBI) to prop up mutual funds and other market segments, Finance Minister P. Chidambaram, on Friday, indicated that the market regulator is expected to announce a fresh set of reform measures next month in keeping with the government’s bid to encourage investment in financial instruments instead of in gold