GS Paper 2

Govt. to revamp patenting process

Context: Central government is revamping the patent office functioning to reduce the massive backlog in granting official recognition for innovations by fast-tracking the hiring process and promotions of some existing officers to ease the process and looking at legislative changes to fix timelines for patent grants/rejections.

What are Patents?

  • Patent grants exclusive rights for an invention which may be of a product or a process for 20 years.
  • Patent is granted for:
    • new invention 
    • involves an inventive step which did not exist before
    • such thing has not existed before and has industrial applications.
  • When a patent is granted on a particular invention, it means that no other person can either produce or sell for commercial purposes those inventions in the market without the approval of the creator of such invention.
  • India grants legal protection to various inventions through The Patents Act, 1970. 

Economic Objectives of Intellectual Property Protection:

  • Promote investments in knowledge creation and business innovation by establishing exclusive rights to use and sell newly developed technologies, goods and services.
  • Promote the widespread dissemination of new knowledge by encouraging or requiring rights holders to place their inventions and ideas on the market. 

Objectives of National Intellectual Property Rights (IPR) Policy 2016:

National Intellectual Property Rights (IPR) Policy 2016 recognises the abundance of creative and innovative energies that flow in India, and the need to tap into and channel these energies towards a better and brighter future with suitable protection. 

  • IPR Awareness, Outreach and Promotion - To create public awareness about the economic, social and cultural benefits of IPRs among all sections of society.
  • Generation of IPRs - To stimulate the generation of IPRs.
  • Legal and Legislative Framework - To have strong and effective IPR laws, which balance the interests of rights owners with the larger public interest.
  • Administration and Management - To modernize and strengthen service-oriented IPR administration.
  • Commercialization of IPRs - Get value for IPRs through commercialization.
  • Enforcement and Adjudication - To strengthen the enforcement and adjudicatory mechanisms for combating IPR infringements.
  • Human Capital Development - To strengthen and expand human resources, institutions and capacities for teaching, training, research and skill building in IPRs.

Major Concerns on Patent Filing in India:

  1. Manpower Shortage: The major reason for delays is the lack of sufficient manpower in the patent office. Though some additional workforce was added in the patent office in the last few years, especially at the examiner level, it is very small when compared with China or USA. The increase in manpower at the examiner level does not correspond with the increase in manpower at the controller level. This merely shifted the pendency from the first examination level to the next stage. Approximately 1.64 lakh applications are pending at the controller level (which was 40,000 in March 2017) as of the end of March 2022 for which preliminary examination has already been done.
  1. No fixed timelines for each step of the process: The lack of timelines for each step leads to various issues.
  • For instance, under Section 25(1) of the Patents Act 1970, a pre-grant opposition can be filed by any person opposing the patent at any time after the patent application has been published and before the grant.
  • However, there is no fixed time frame and this leads to build-ups and delays. Lack of time frame for filing an opposition for a grant of patent is also misused for making frivolous complaints which keeps delaying the process.
  • There is also no time limit prescribed in the law for the Controller to conduct a hearing to determine the validity of responses to the First Examination Report and any outstanding objections which may not have been adequately addressed by the applicant.
  1. Increase in Abandoned Applications: As per the Annual Report (2019-20) of the Office of the Controller General of Patents, Designs, Trademarks and Geographical Indications (CGPDTM) shows that the number of abandoned patent applications, on account of not meeting the requirements under the Patents Act grew by almost 350% (5,186 in 2010-11 to 23,291 in 2019-20). 
  1. Cumbersome compliance requirements delay the process: There are certain provisions of the Patent Act 1970 which lead to cumbersome compliance requirements on the applicants. For instance, some provisions require an applicant to keep submitting information relating to the prosecution of foreign patent applications periodically.
  1. Not much focus on Industry-Academia Collaboration: One of the indicators of the Global Innovation Index (GII) is industry-academia collaboration where India’s score has decreased from 47.8 in 2015 to 42.7 in 2021. Consequently, India’s ranking in this indicator in the GII declined from 48 to 65 during this period. However, improvements in some other indicators have resulted in India’s overall ranking in the GII improving from 81 in 2015 to 46 in 2021. 

Way Forward:

  1. Increase in Manpower in Patent Office: There is a need to immediately sanction additional posts at the controller level to clear the current backlog of 1.64 lakh applications (which have already undergone preliminary examination) as of the end of March 2022. Further, a substantial increase in manpower is required in the patent office in the next few years to be able to compete with our global peers in terms of the scale of patent applications and the time taken to process them.
  1. Need for Skill Enhancement: To expand the available pool of trained workforce, a short certificate course (like a diploma) may be developed in collaboration with some academic/technical institutions that may be done concurrently with the existing graduation courses. There is a need to build the career path of the employees in the patent office to attract good talent to the patent office.
  1. Address Procedural Issues: Fixing timelines for each step of the process as per the laws of the United States - the time limit for any party to submit any material of potential relevance to the examination of the application is within 6 months after the date on which the patent application is first published. 
  1. Remove the Cumbersome compliance requirements: For instance, there are requirements for applicants to keep submitting information relating to the prosecution of foreign patent applications in a periodic manner leading to high compliance requirements. Considering that now India is a part of WIPO Centralized Access to Search and Examination (CASE), such information can easily be accessed by the patent office for PCT applications.
  1. Consider bringing in utility model of patents: A utility patent is a special form of patent right granted by a state to an inventor for a fixed time period where the eligibility requirements are less stringent and the term of protection is shorter and these are cheaper to acquire as well. It secures protection for small innovations, which does not require the strict novelty and invention conditions as required by the patent law. 
  1. Outsource the Administrative Process to a Third Party: The administrative process of the patent application process can be outsourced to a third party, as has been done in the case of the passport office so that the examiners and controllers can focus on the core technical work.
  1. Extensive use of machine learning/automation of administrative steps can be done to make the process more streamlined.

Key Facts:

  • China is the world leader in both filing and granting patents and has over 13,700 people in its patents office, and the US is the second largest, while India has just about 858 as of 2022.
  • As of FY23, the total number of patent filings touched 82,809 of which 52.3% or 43,337 applications were from domestic companies and 39,472 were from foreign companies operating here. The domestic share was 37% in FY20 and 44.4% in FY22.
  • In FY22 the number of patents granted stood at 34,153 from 82,805 filings and at 30,074 in the previous year from 66,400 filings. As against this, the numbers in China were 6.95 lakhs and 15.85 lakhs for FY22 and 3.27 lakhs and 6.95 lakhs in the U.S.

Governor's power to reserve bills for approval

Context: The Supreme Court has given a timely reminder to Governors that the Constitution expects that a decision to return a Bill to the State Assembly for reconsideration should be made “as soon as possible”. It has drawn attention to the phrase found in the first proviso to Article 200, seeking to convey a sense of immediacy in the matter of returning a Bill.  “The expression ‘as soon as possible’ contains significant constitutional content and must be borne in mind by constitutional authorities,” the Court observed. This effectively means it would be constitutionally impermissible for Governors to hold on to Bills indefinitely without communicating their decision to the House.

Power and function of the Governor pertaining to giving assent to a bill falls under category of legislative powers.

Constitutional Provisions

  • Article 200 – When a Bill has been passed by the Legislative Assembly of a State or, in the case of a State having a Legislative Council, has been passed by both Houses of the Legislature of the State, it shall be presented to the Governor and the Governor shall have following options
  • He may give his assents to the Bill , thus the bill becomes an Act.
  • He may withholds assent , the bill thus ends and does not becomes an Act.
  • He may return the bill for the reconsideration of House or houses.  If the bill is passed again with or without amendments and presented to Governor for his assent, the governor must give his assent to the bill.
  • He may reserves the Bill for the consideration of the President.
  • Article 201 – When a Bill is reserved by a Governor for the consideration of the President, the President shall have following options
  • He may give his Assent. 
  • He may withhold his Assent.
  • He may direct the Governor to return the bill to the House or, as the case may be.

The Governor’s power to withhold assent or return a Bill, with a message, for reconsideration is seen as discretionary.

Article 163

  • Another constitutional provision of importance is Article 163 which states 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.  
  • However, the discretionary powers of the Governors have not been explicitly defined in the constitution and can only be ascertained by going through certain constitutional provisions.

Concerns 

There are three clear problems associated with Article 200, which deals with assent to Bills: 

  • The absence of a time limit for acting on Bills
  • The scope for reserving a Bill for the President’s consideration against the express advice of the Cabinet 
  • The claim that the Governor can kill any Bill by declining assent. 

The mischief lies in Article 163, which hedges the primary rule that the Governors function on the ‘aid and advice’ of the Cabinet, with a clause that prohibits any inquiry into whether a particular matter fell within their discretion or not. These provisions give abundant scope for conflict between the government and Raj Bhavan.

Way Ahead 

Important Supreme Court Judgements
Shamsher Singh v. State of Punjab (1974) – Supreme Court said: “The Governor has no right to refuse to act on the advice of the Council of Ministries. Such a position is antithetical to the concept of ‘responsible government’.”     B.P. Singhal v. Union of India (2010)Five Judge Bench of Supreme on removal of governors mentioned about the dual role of governor: 1. Agent of the Centre & 2. Head of the state.SC also held that there may be instances of conflict between Centre and states where the governor has to act neutrally.

Sarkaria commission recommendation w.r.t assent to the bills

  • Normally, in the discharge of the functions under Article 200, the Governor must abide by the advice of his Council of Ministers. 
  • In dealing with a State Bill presented to him under Article 200, the Governor should not act contrary to the advice of his Council of Ministers merely because, personally, he does not like the policy embodied in the Bill.
  • Needless reservation of Bills for President's consideration should be avoided.
  • Normally, when a Bill passed by the State Legislature is presented to the Governor with the advice of the Council of Ministers that it be reserved for the consideration of the President, then the Governor should do so forthwith. If, in exceptional circumstances, the Governor thinks it necessary to act and adopt, in the exercise of his discretion, any other course open to him under Article 200, he should do so within a period not exceeding one month from the date on which the Bill is presented to him.
  • State Governments often consult the Government of India at the drafting stage of a Bill. This is a healthy practice and should continue.
  • As a matter of salutary convention, a Bill reserved for consideration of the President should be disposed of by the President within a period of 4 months from the date on which it is received by the Union Government.
  • As a matter of convention, the President should not withhold assent only on the consideration of policy differences on matters relating, in pith and substance, to the State List.
  • President's assent should not ordinarily be withheld on the ground that the Union is contemplating a comprehensive law in future on the same subject. To the extent feasible, the reasons for withholding assent should be communicated to the State Government.

For further readings regarding the details of Article 200 and Article 201 refer to the following links

India-China Defence Ministers Meeting

Context: The meeting between defence minister Rajnath Singh and his counterpart Li Shangfu saw both sides reiterating their positions, highlighting the persisting gap in the respective perceptions about what went wrong in Ladakh in 2020, its resolution, and how to move forward peacefully from there.

  • It was reiterated that development of relations between India and China is premised on prevalence of peace and tranquillity at the borders, all issues at the LAC need to be resolved in accordance with existing bilateral agreements and commitments and the violation of basic agreements has eroded the entire basis of bilateral relations.

On Border Dispute and its resolution:

  • Previously Indian and Chinese armies have conducted 18 rounds of military talks on ending the border row.
  • Though at the 16th round of military talks, the two sides carried out disengagement from Patrolling Point 15 in the Gogra-Hot springs area. 
  • The ties between the two countries nosedived significantly following the fierce clash in the Galwan Valley in June 2020 that marked the most serious military conflict between the two sides in decades. As a result of a series of military and diplomatic talks, the two sides completed the disengagement process on the north and south banks of the Pangong Lake and in the Gogra area. The eastern Ladakh border standoff erupted following a violent clash in the Pangong Lake area.
  • Recently China released a statement included a map that showed the 11 places renamed by China as being within “Zangnan”, or southern Tibet in Chinese, with Arunachal Pradesh included in southern Tibet and China’s border with India demarcated as just north of the Brahmaputra river.

Preparedness & Resilience for Emerging Threats Initiative (PRET Initiative)

Context: World Health Organisation (WHO) launched PRET initiative to improve pandemic preparedness.

PRET Initiative

  • PRET Initiative is an innovative approach launched by World Health Organisation (WHO) for improving disease pandemic preparedness and prevention by providing guidance on integrated planning for responding 
  • Uses a mode of transmission approach to guide countries in pandemic planning.  
  • Aims to strengthen existing systems and capacities and fill gaps in existing systems. 
  • PRET's first module will aim at boosting pandemic preparedness for respiratory pathogens such as influenza, coronaviruses or respiratory syncytial virus. The process for identifying next group of pathogens like arboviruses is underway. 
  • Recognises three tiers of systems and capacities relevant for pandemic preparedness:
  1. Cross-cutting for all or multi-hazards
  2. Relevant for groups of pathogens (respiratory arboviruses)
  3. Specific to a pathogen

RESPIRATORY PATHOGENS PARTNERS ENGAGEMENT FORUM (R-PEF)

  • It is an informal coordination forum convened by WHO to strengthen networking for respiratory pathogen preparedness planning.
  • R-PEF enables WHO and partners to exchange information on planned activities, lessons learnt, gaps and needs, reviews and other developments relating to pandemic preparedness for respiratory pathogens.
  • R-PEF will focus on elements common to respiratory pathogen preparedness. It does not advise or provide inputs for purposes of norms and standards setting to WHO. 

Respiratory Pathogens Pandemic Resource Pack (R-PRP)

  • Updated resources for respiratory pathogens with pandemic potential will be collectively houses in R-PRP, web-portal.
  • Objective of R-PRP is to support a harmonised approach to planning for future pandemics caused by respiratory pathogens.
  • This resource pack will:
  1. Incorporate lessons learned from respiratory pathogen epidemics and pandemics such as influenza, MERS-CoV-2, SARS-CoV-2
  2. Provide a broader respiratory pathogen focus with pathogen specific elements where needed.
  3. Leverage new modalities for partner engagement and shared learning.
  4. Capitalise on current momentum to strengthen national functional capacities for preparedness and response. 

Significance of PRET Initiative

  • Given the ongoing COVID-19 pandemic and possible threat of avian influenza, this module will enable countries to critically review, test and update their respiratory pandemic planning efforts to ensure they have functional capacities and capabilities in place.
  • One-Health Approach: PRET is based on the philosophy of One Health which recognises that most new pathogens originate first in animals and that preventing, preparing and responding to emerging threats requires multi-sector action.
  • Focus on Mode of Transmission: PRET focuses on Mode of Transmission of pathogens to guide countries in pandemic planning, rather than a focus on specific diseases. 
  • Makes way for Pandemic Accord: PRET can also serve to operationalise the objectives and provisions of the Pandemic Accord, which is currently being negotiated by Member States of WHO.

Surrogacy

Context: The Supreme Court on Tuesday questioned whether a single, unmarried woman having a child through surrogacy is an “accepted norm” in Indian society or not.

The act defines surrogacy as a practice where a woman gives birth to a child for an intending couple with the intention to hand over the child after the birth to the intending couple.

Surrogacy can be classified into altruistic and commercial. 

  • True to the meaning of the word, altruistic surrogacy entails no financial compensation for the surrogate. 
  • In contrast, commercial surrogacy involves paying the surrogate for bearing the child, implying a profit, 
  • while a third type i.e. compensated surrogacy simply involves covering the incurred expenses and loss of wages.

Surrogacy (Regulation) Act, 2021

  • It defines the surrogacy as we have discussed earlier.
  • The Act prohibits commercial surrogacy, but allows altruistic surrogacy.
  • It provides for Eligibility criteria for intending couples:
  • Further, this act also specifies the eligibility criteria:
    • Surrogacy is permitted only for those intending married Indian couples who suffer from proven infertility.
    • An Indian woman who is a widow or divorcee between the age of 35 to 45 years and who intends to avail the surrogacy.
  • Further it lays eligibility criteria  for the surrogate mother also which specifies that she must be close relative of the intending couple, she must be a surrogate only once in her lifetime; and the surrogate mother cannot provide her own gametes for surrogacy.

Concerns

  • Exclusionary: The provisions deny this opportunity to LGBTQ+ persons, live-in couples, unmarried women and single parents.
  • Altruistic surrogacy is paternalistic -  It expects a woman to go through the physical and emotional tolls of surrogacy free of cost and only out of ‘compassion’. Thus reinforcing age old patriarchal norm of no economic value to the women’s work.
  • It doesn’t respect the bodily autonomy of women - By shifting from right based to need based approach it snatches away the right of a women to decide upon her reproductive choices. Further it is and violative of her fundamental rights under Articles 14 (right to equality) and 21 (right to life) of the Constitution.
  • Impetus to Black marketing- Blanket ban on commercial surrogacy may lead to creation of unregulated, exploitative underground/black markets.
  • Does not defines close relative - The act didn’t define ‘close relative’, which is a condition to be fulfilled by the surrogate mother. Thus scope for confusion and exploitation of loop holes is always there.
  • Reproductive liberty to the couples - Several restriction in form of eligibility criteria etc restricts the surrogacy option to intending couple which is a denial of reproductive liberty to them.
  • No power to make decision on abortion - Intending couple don’t have final say in the consent to abort a surrogate child, even if the child being born out of a surrogacy arrangement is at the risk of physical or mental abnormalities.
  • Identity and emotional aspect - Several times couples do not want to reveal their plans of oping for surrogacy, now putting the condition of close relative to be a surrogate clearly ignores this aspect and restricts the choices. Further, familial bonds and interaction may involve high emotional complications between surrogate mother and intended parents.

Way ahead

It is essential that, in the process of addressing the exploitation of surrogate mothers, the act should be revised to establish a comprehensive and inclusive procedure. This revised procedure should aim to make surrogacy readily accessible to the deserving citizens of India.

The ambiguities in the nuclear liability law

Context: The issues regarding India’s nuclear liability law has stalled work on Maharashtra’s Jaitapur, the world’s biggest nuclear power generation site under consideration.

What is the law governing nuclear liability in India?

Laws on civil nuclear liability ensure that compensation is available to the victims for nuclear damage caused by a nuclear incident or disaster and set out who will be liable for those damages. 

The umbrella Convention on Supplementary Compensation (CSC) was adopted in 1997 with the aim of establishing a minimum national compensation amount. The amount can further be increased through public funds, (to be made available by the contracting parties), should the national amount be insufficient to compensate the damage caused by a nuclear incident.

India was a signatory to the CSC (convention ratified in 2016). 

India enacted the Civil Liability for Nuclear Damage Act (CLNDA) in 2010, to put in place a speedy compensation mechanism for victims of a nuclear accident. 

Main Provisions: 

1. strict and no-fault liability on the operator of the nuclear plant, where it will be held liable for damage regardless of any fault on its part. 

2. It also specifies the amount the operator will have to shell out in case of damage caused by an accident at ₹1,500 crore and requires the operator to cover liability through insurance or other financial security. 

3. In case the damage claims exceed ₹1,500 crore, the CLNDA expects the government to step in and has limited the government liability amount to the rupee equivalent of 300 million Special Drawing Rights (SDRs) or about ₹2,100 to ₹2,300 crore. 

4. The Act also specifies the limitations on the amount and time when action for compensation can be brought against the operator.

India currently has 22 nuclear reactors with over a dozen more projects planned. All the existing reactors are operated by the state-owned Nuclear Power Corporation of India Limited (NPCIL).

What does the CLNDA say on supplier liability?

The international legal framework on civil nuclear liability calls for exclusive liability of the operator of a nuclear installation and no other person. Similarly, suppliers of nuclear equipments called liability to be unviable and hinder the growth of nuclear energy. Other arguments were to provide single point liability and remove complexity of legal hurdles. 

Section 10 of the annex of the CSC lays down “only” two conditions under which the national law of a country may provide the operator with the “right of recourse”, where they can extract liability from the supplier — one, if it is expressly agreed upon in the contract or two, if the nuclear incident “results from an act or omission done with intent to cause damage”.

However, India, going beyond these two conditions, for the first time introduced the concept of supplier liability over and above that of the operator’s in its civil nuclear liability law, the CLNDA. 

CLNDA has a Section 17(b) which states that the operator of the nuclear plant, after paying their share of compensation for damage in accordance with the Act, shall have the right of recourse where the “nuclear incident has resulted as a consequence of an act of supplier or his employee, which includes supply of equipment or material with patent or latent defects or sub-standard services”.

Why is the supplier liability clause an issue in nuclear deals?

Suppliers have taken issue with two specific provisions in the law, Section 17(b) and Section 46. 

The latter clause goes against the Act’s central purpose of serving as a special mechanism enforcing the channelling of liability to the operator to ensure prompt compensation for victims. 

Section 46 provides that nothing would prevent proceedings to be brought against the operator. It allows criminal liability to be pursued where applicable. Issue: definition on the types of ‘nuclear damage’ being notified by the Central Government is not clear. Section 46 potentially allows civil liability claims to be brought against the operator and suppliers through other civil laws such as the law of tort. While liability for operators is capped by the CLNDA, this exposes suppliers to unlimited amounts of liability.

The challenge of reviving a sense of fraternity

What is Fraternity?

  • The term fraternity is provided in the Preamble of the Indian constitution. In the words of Dr Ambedkar, it means a sense of common brotherhood of all Indians — if Indians are one people. It is the principle that gives unity and solidarity to social life.
  • The idea of fraternity is based on the view that people have responsibilities to each other.
  •  It was defined after the French Revolution in the following terms: ‘Do not do to others what you would not want them to do to you; do constantly to others the good which you would wish to receive from them.
  • It is generally seen as an emotion rather than a principle because it denotes a feeling of attachment to nationals.

Why do we need Fraternity?

  • India is a land of Diversity in terms of race, ethnicity, religion, caste and culture.  To ensure unity and integrity of the nation we need to follow the concept of fraternity.
  • It is the Fundamental duty of every citizen of India ‘to promote harmony and the spirit of commonality among all the people of India, transcending religious, linguistic and regional or sectional diversities.
  • In the words of Ambedkar, these principles of liberty equality and fraternity are not to be treated as separate items in a trinity. They form a union of trinity in the sense that to divorce one from the other is to defeat the very purpose of democracy.
  • Fraternity assures the dignity of the individual and the unity and integrity of the Nation. 

Challenges before Fraternity

  • Social inequalities: There are widespread inequalities in our society based on caste, gender, religion race and culture etc.
  • Political inequalities: Political inequalities are visible in the fact that only 10.5% of MPs are female in our parliament.
  • Economic inequalities: top 10% of the Indian population holds 77% of the total national wealth and 73% of the wealth generated in 2017 went to the richest 1% while 670 million Indians who compromise the poorest half of the population saw only a 1% increase in their wealth.
  • Regional inequalities: it can be seen in the case of South Indian states vis a vis North Indian states specially BIMARU states (Bihar, MP, Rajasthan, UP)
  • Communalism: Communalism is growing in India it can be seen in the communisation of religious festivals like recent Ramanavami processions, Cow vigilantism, Love Jihad etc.

Way forward:

  • Every citizen should follow their constitutional duty of harmony.
  • State agencies should follow the principle of secularism while implementing the law.
  • Religious and political leaders should avoid divisive politics.
  • Civil society can play a crucial role in resistance against state-sponsored discrimination.
  • Institutions’ autonomy should be promoted so that they can perform their duty effectively.

Only half of PMJDY insurance claims were settled in two years

Context: In the last two financial years, only 329 claims for the accident insurance cover provided to bank account holders under the Pradhan Mantri Jan Dhan Yojana (PMJDY) have been settled out of the 647 claims that were filed.

About PMJDY

PMJDY is a National Mission on Financial Inclusion encompassing an integrated approach to bring about comprehensive financial inclusion of all the households in the country.

The plan envisages universal access to banking facilities with

  •  at least one basic banking account for every household,
  •  financial literacy,
  •  access to credit,
  •  insurance and
  • pension facility.

Mobile transactions through telecom operators and their established centres as Cash Out Points are also planned to be used for Financial Inclusion under the Scheme.

Benefits under PMJDY

  •  One basic savings bank account is opened for unbanked persons.
  • There is no requirement to maintain any minimum balance in PMJDY accounts.
  •  Interest is earned on the deposit in PMJDY accounts.
  •  Rupay Debit card is provided to PMJDY account holders.
  •  Accident Insurance Cover of Rs.1 lakh (enhanced to Rs. 2 lakhs for new PMJDY accounts opened after 28.8.2018) is available with a RuPay card issued to the PMJDY account holders.
  •  An overdraft (OD) facility of up to Rs. 10,000 to eligible account holders is available.PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Micro Units Development & Refinance Agency Bank (MUDRA) scheme.

Achievements of PMJDY

  •  48.82 crore beneficiaries banked so far under PMJDY
  •  Rs. 199341.41 crore balance in the bank accounts under PMJDY
  •  6.55 lakh bank Mitras are delivering branchless banking services in the country.

‘Why is PM CARES Fund not subject to public audit?’

Context: The Congress party has accused the government of lack of transparency and accountability in the PM CARES Fund and demanded that a public fund that receives donations of ₹5,000 crore should come under the ambit of RTI and show accountability.

About PM CARES Fund

  • PM CARES Fund has been registered as a Public Charitable Trust under the Registration Act, 1908. Its primary objective is to deal with any kind of emergency or distress situation, like posed by the COVID-19 pandemic, and to provide relief to the affected.
  • The Prime Minister of India is the ex-officio Chairman of the PM CARES Fund, and the Ministers of Defence, Home Affairs, and Finance are its Trustees.
  • The PM CARES Fund relies entirely on voluntary contributions from individuals and organizations and does not receive any financial support from the government's budget. 
  • Contributions made to the PM CARES Fund are eligible for 100% income tax exemption under the Income Tax Act of 1961, encouraging people to donate for a good cause. 
  • Donations made to the PM CARES Fund can be counted as part of a company's Corporate Social Responsibility (CSR) expenditure under the Companies Act of 2013. 
  • The PM CARES Fund has received exemption under the Foreign Contribution Regulation Act (FCRA), allowing it to receive donations and contributions from foreign individuals and organizations. 
  • This exemption is consistent with the Prime Minister's National Relief Fund (PMNRF), which has been accepting foreign contributions as a public trust since 2011.

Objectives of PM CARES

  • The primary goal of the PM CARES Fund is to support relief and rehabilitation efforts in times of crises, with a focus on providing essential resources and services to people in distress.
  • The PM CARES Fund is authorized to provide relief and support in the event of a public health emergency or any other kind of emergency, whether caused by humans or nature. 
  • The Fund can support various initiatives such as upgrading healthcare or pharmaceutical facilities, providing necessary infrastructure, funding relevant research, or any other form of assistance. 

Government’s response on audit of PM CARES Fund

  • The Centre has informed that PM CARES Fund is set up as a public charitable trust and is not created under the Constitution or any law made by the Parliament or the state. Hence, it does not constitute a public authority under the provisions of the RTI Act
  • The trust is not a public authority under Right to Information (RTI), and it accepts voluntary donations by individuals and institutions and any contributions flowing out of budgetary sources of government are not accepted. 
  • The government has clarified that the PM CARES Fund/Trust is independent of any government or its agencies. Although some holders of public office serve on the board of trustees, it is for administrative convenience only and does not confer ownership or control over the trust. 
  • Furthermore, the purpose of the PM CARES Fund/Trust is entirely charitable, and its funds are not used for any government projects. Therefore, the trust cannot be classified as a 'public authority' and is not governed by any government policies.

Right to Information:

  • The Right to Information Act (RTI) of 2005 is a landmark law in India, aimed at combating corruption and ensuring accountability in governance. 
  • It grants citizens the power to access government documents and files and hold public officials accountable for their actions. 
  • The RTI Act is a crucial tool for promoting transparency and accountability in a democratic society, where the government is accountable to its citizens.
  • In fact, the Supreme Court of India has held in the case of 'Raj Narayan v/s Uttar Pradesh' that the Right to Information is a fundamental right guaranteed under Article 19(1)(a) of the Indian Constitution. This reflects the importance of the right to information in a democratic society.
  • However, there are certain organizations that are exempted from the purview of the RTI Act. These include intelligence agencies, the central economic intelligence bureau, research bodies working with the country's security agencies, and paramilitary forces.

Success of RTI

  • 2G Scam
  • Coalgate Scam

Challenges of Right to Information:

  • Low public awareness: Section 26 of the Act states that the appropriate Government may develop and organize educational programmes to advance the understanding of the public, especially disadvantaged communities, regarding how to exercise the rights contemplated under the Act. However, information seeker survey revealed that only 15% of the respondents were aware of the RTI Act.
  • Poor record management practices: Under Section 4(2), organizations have to maintain computerized records – but organizations are not doing it.
  • Constraints faced in filing applications: Non-availability of User Guides for RTI implementation for information seekers, which was mandated under Section 26 of the RTI Act.
  • Exemptions: Section 8(1) provides for exemptions to disclosure of info from Intelligence organizations, Judiciary, Cabinet papers, and matters concerning Foreign relations.
  • Poor quality of information provided: During the information seeker survey, it was also highlighted than more than 75% of the citizens are dissatisfied with the quality of information being provided. The percentage of people who said that incomplete information was provided to them was alarmingly high in Andhra Pradesh – 91% and Uttar Pradesh - 96%.
  • Lack of Information on certain accounts: During COVID pandemic when the government was asked about specific data on how many people lost their lives due to lack of oxygen, number of migrant workers who lost their jobs – government replied that it does not have such data.
  • Failure to provide information within 30 days: During the study, more than 50% of the information seekers mentioned that it took more than 30 days to receive the information from the PIO. 
  • Information Commissions are becoming parking lots for retired bureaucrats. 
  • Vacancies: There is a huge backlog of vacancies in the information commission i.e., 24% of the information commissioners posts lying vacant in 28 states.
  • Threat to RTI Activists: According to Commonwealth Human Rights Initiative (CHRI), 84 RTI activists have been murdered since 2005 for seeking information on illegal construction, alleged scams in social welfare schemes, and corruption in panchayats.

Way Forward:

  • Reduce pendency
  • Fill up vacancies
  • Protection to Whistle Blowers 
  • Bring Political Parties under RTI

Vibrant Villages Programme along China border to be integrated with PM Gati Shakti mega project

Context: The Government launched the ambitious Vibrant Villages Programme to develop 2,967 border villages along China through integrated planning. It aims to boost infrastructure, open villages to tourism, gather intelligence and curb migration. The programme will use satellite images and GIS mapping to track changes. 455 Arunachal villages, 35 Ladakh villages and some in HP, Sikkim and Uttarakhand will be covered first. The Rs. 4,800 crore scheme focuses on roads, livelihoods and motivating residents to stay. It counters China's expanding 'moderately prosperous' villages opposite sensitive areas.

Vibrant Villages Programme (VVP)

The Government of India announced the Vibrant Villages Programme (VVP) in the Union Budget 2022-23. It aims to develop infrastructure and enhance livelihood opportunities in villages located along India's border with China. 

The objective of VVP is threefold:

First, Improve connectivity and basic amenities in border villages to curb migration from these areas. Lack of roads, healthcare, education and economic opportunities have led to migration of youth from border villages in search of jobs. This poses challenges for border security as it reduces the population providing intelligence inputs.

Second, Boost the local economy in border villages through promotion of tourism, trade and handicrafts. This will provide livelihood support to communities living in harsh border conditions.

Third, Strengthen security in border areas by enabling access for defense forces and boosting the morale of local communities. Lack of infrastructure has hampered patrolling in some border areas. Locals acting as 'eyes and ears' also need to feel connected to the mainstream. 

  • The VVP aims to cover 2,967 villages in 19 districts across 5 states - Arunachal Pradesh, Sikkim, Himachal Pradesh, Uttarakhand and Ladakh along the China border. In the first phase, 662 priority villages will be covered at a cost of Rs. 4,800 crore over 3 years. Road construction will receive the major allocation of Rs. 2,500 crore. 
  • The program will be integrated with the PM Gati Shakti national master plan for coordinated development of infrastructure. Satellite data and GIS mapping will be used to monitor the progress of VVP in real time. States have been asked to organize cultural and tourism activities in selected villages to support the local population. 
  • The VVP is the Centre's strategic move to strengthen security and spur development in border villages along the sensitive China border. If implemented effectively, it can give a fillip to the economy, improve living standards, reduce migration and enhance India's defense preparedness through a well-connected and thriving border community. However, much will depend on coordinated efforts between the Centre and States as well as cooperation from locals in these sensitive areas.

Rationale and Significance

  • Develop border areas: The border villages along China are remote, sparsely populated and lack infrastructure and connectivity. The VVP aims to boost infrastructure like roads as well as livelihood opportunities in these neglected areas. This will spur development in these border regions.
  • Curb migration: The lack of opportunities in border villages has led to migration of youth to cities. The VVP seeks to generate livelihoods and motivate people to continue staying in border areas. This can help maintain population in sensitive border regions.
  • Strengthen security: By developing border villages and encouraging people to stay, the VVP will help strengthen India's security apparatus in these areas. The local population can provide intelligence and their presence also acts as a deterrent against incursions.
  • Counter China: China has been developing model 'Xiaokang' villages close to the LAC opposite Indian border states. The VVP is aimed at countering China's moves by ramping up infrastructure and access in India's border villages. This can boost India's strategic interests along the border.
  • Promote tourism: Opening up border villages to tourism through activities like fairs, cultural events etc. can generate employment and economic opportunities for locals. It can also bring these scenic but secluded areas into the mainstream, boosting their prosperity.
  • Integrated planning: The VVP will use technologies like satellite imaging and GIS mapping to monitor development in border villages. This integrated approach can help in targeted policymaking and implementation to transform these villages.

Implementation Strategy

  • MHA is nodal ministry, will monitor through BISAG-N's satellite data and GIS mapping.
  • Tailored plans: Border villages have diverse terrains, populations and challenges across states. Plans should be tailored based on local needs and potentials. A 'one-size-fits-all' approach may not work.
  • People's participation: Local communities must be actively involved in planning and implementation. Their participation can make schemes sustainable and address key priorities. Villagers' inputs should be incorporated.
  • Focus on connectivity: Lack of connectivity is a key reason for migration and under-development in border areas. Road networks should be expanded along with telecom connectivity. This can open up opportunities.
  • Livelihood promotion: Schemes for skills training, tourism, agriculture etc. should be based on local resources and demands. This can generate sustainable incomes and jobs for people.
  • Continued monitoring: Using satellite data and GIS tools, infrastructure and land use changes in border villages should be regularly monitored. This can help review and upgrade plans to achieve desired development.
  • Convergence of schemes: Various central/state schemes like PMGSY, Skill India, Digital India etc. should be converged for maximum impact. Duplication of efforts should be avoided through integrated planning.
  • Adequate funds and autonomy: Sufficient funds must be allocated for timely completion of ambitious projects. Local administrations should be given more autonomy and flexibility in utilising funds as per needs.
  • Security considerations: Development plans should factor in security considerations given the sensitive border locations. Infrastructure like roads should meet the needs of security forces as well.
  • Promote tourism: In addition to livelihoods, tourism potentials of border villages with natural scenery should be leveraged for economic and connectivity gains. This can boost local prosperity through homestays, guides, handicraft sales etc.
PM Gati Shakti 

It is a digital platform for integrated planning and coordinated implementation of infrastructure connectivity projects. It aims to bring ministries like Railways, Roadways, Shipping together for coordinated development of projects. The key benefits of integrating the Vibrant Villages Programme with PM Gati Shakti are:

Breaking silos: Different ministries and departments often work in silos, leading to lack of coordination and duplication of efforts. PM Gati Shakti's integrated platform can enable planning the VVP across ministries, avoiding silos and ensuring convergence.

Prioritising connectivity: The VVP focuses on infrastructure and connectivity in border villages. Use of the PM Gati Shakti platform can help map existing and required connectivity in border areas and prioritise critical gap areas to address first. This data-driven approach aids targeted implementation.

Satellite mapping: PM Gati Shakti uses satellite images and GIS mapping to map terrain and plan projects. This technology can be leveraged for the VVP to map border villages, track infrastructure progress, and make any changes in real-time based on needs. This helps in continued monitoring and optimisation of initiatives.

Identifying chokepoints: The PM Gati Shakti platform uses mapping to identify infrastructure chokepoints and gaps across the country. This approach can similarly help identify key road, rail or digital connectivity chokepoints in border areas that the VVP needs to address on priority to boost access and strategic mobility.

Coordinated security planning: Enhancing infrastructure and connectivity in border villages pertains to national security too. Use of the PM Gati Shakti platform can enable coordinated planning of VVP initiatives along with inputs from security agencies. This helps factor in any security considerations in development plans.

Optimising resources: A comprehensive view of existing and needed infrastructure, enabled by the PM Gati Shakti platform, can help optimise allocation of funds and resources for the VVP. Duplication of efforts can be avoided and funds channeled to priority areas.

National Health Accounts

Context: The Health Ministry released the National Health Accounts Estimates for India (2019-20) and noted that there has been significant decline in share of out-of-pocket expenditure (OOPE) in total health expenditure.

National Health Accounts Estimates for India (2019-20): 

  • Total Health Expenditure (THE) for India is estimated to be around 3.3% of GDP and ₹4,863 per capita.
  • Share of Out-of-Pocket Expenditure (OOPE) in Total Health Expenditure declined from 62.6% in 2014-15 to 47.1% in 2019-20.
  • Share of Government Health Expenditure in Total Health Expenditure increases from 29% (2014-15) to 41.4% (2019-20).
  • Government Health Expenditure’s share in country’s total GDP increases from 1.13% (2014-15) to 1.35% (2019-20).
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Government Health Expenditure and Out-of-pocket expenditure as % of Total Health Expenditure (%)

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                      Government Health Expenditure as % of GDP

Despite the significant increase in government expenditure on Health, it is still way below the target of National Helath Policy (2017)- 2.5% of GDP.

Need for Government Health expenditure

  • Preventive Healthcare: Unlike private Health expenditure, public spending invests heavily on preventive health care services like Immunization and Nutrition which ultimately reduces the expenditure burden on curative Healthcare. 
  • Reduce Catastrophic expenditure: In a country like India whose workforce is predominantly concentrated in informal sector and devoid of social security net, there is more probability for incidence of catastrophic health expenditure on its population. Hence, significant public spending on health is necessary to reduce catastrophic health expenditure and incidence of poverty as a result of it.

Limitations of Private participation

  • Affordability: Since private institutions require heavy investment in infrastructure, advanced equipment and quality professionals, health services are not affordable. This causes heavy out-of-pocket expenditure by households, especially in secondary & tertiary care. 
  • Issues in Private insurance: Adverse selection (asymmetric information between buyer and insurer) and moral hazard (reckless attitude of insured consumers), lead to higher pay-out by insurance companies. This cost is adjusted by increasing premium prices, which makes health insurance less attractive for the majority of Indians.
  • Issues with private participation in public-funded health protection schemes:
  • Supply-induced demand: When patients are protected under schemes like PMJAY, private hospitals can resort to over-prescription of medication, non-standardised tests, and a longer duration of therapy to generate additional revenue.
  • Low-reimbursement tariffs set by the government deter genuine private hospitals to be part of such schemes.
  • Overpriced drugs: Private firms have invested heavily in R&D for new drugs, especially for secondary and tertiary care; hence, the price of patented drugs is passed on to consumers.

Hence, private participation can only complement but can’t replace public spending on Health to achieve the goal of Universal Health Coverage.

Operationalise Safe City Project by August: Saxena to Delhi Police

Context: Lieutenant-Governor Vinai Kumar Saxena reviews the progress of the Central government-funded project, and issues instructions to complete the first phase of the ₹798-crore Operationalise Safe City Project by August.

About Operationalise Safe City Project

  •  A Ministry of Home Affairs initiative in collaboration with the Ministry of Women and Child Development under the Nirbhaya Fund in eight metro cities — Delhi, Kolkata, Mumbai, Chennai, Bengaluru, Hyderabad, Ahmedabad and Lucknow.
  • The project aims to create a safe, secure and empowering environment for women and girls in public spaces.
  • Under the project, 10,582 CCTV cameras will be installed.
  •  A command-and-control centre will also be set up with facilities for video analytics, AI, machine learning, facial recognition, etc., at police headquarters, district headquarters and police stations.
  • Two mobile command and control vehicles and 88 Prakhar Vans will also be deployed with mobile data terminals, body-worn cameras, etc.
  • The cost of the projects is shared in a 60:40 ratio between the Central government and the States concerned.
  • In Delhi, however, the Centre fully funded the project and implemented it through the Delhi Police through the Centre for Development of Advanced Computing (C-DAC).
  • The Pune-based C-DAC has appointed RailTel and NEC India to install CCTV cameras and connect them to feeders and main servers.