current affairs newspaper analysis and … of the one-rank one-pension (orop) scheme for...

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Newspaper Analysis and Summary– 30th May 2015

POLITY AND GOVERNANCE NHRC for CBI probe into Chittoor encounter Observing that it was a serious case of violation of human rights, the National Human Rights

Commission (NHRC) on Friday recommended, among others, a CBI enquiry into the April 7

encounter with police, in which 20 woodcutters from Tamil Nadu were killed at Seshachalam

forests of Andhra Pradesh.

The Commission directed the Centre and the Andhra Pradesh government to transfer the First

Information Reports filed by the local police to the Central Bureau of Investigation (CBI) and

an action-taken report in four weeks.

Talking to reporters here, NHRC member Justice D. Murugesan said that the Commission

has also recommended an interim relief of Rs. five lakh to each of the victim families in the

incident. A release from the NHRC stated that there were “good grounds to think that there

was serious violation of human rights” considering the background of victims, delay in

registering an FIR and the “reluctance” of the AP government in sharing even the basic

information with the Commission.

Holding that the families of victims “cannot be allowed to starve and die waiting for the final

outcome” of the enquiry by the NHRC or investigation by any other agency, it directed the

Andhra Pradesh government to pay Rs. five lakh each as immediate interim relief to the

families of the 20 victims and file compliance in eight weeks. The District Magistrate at

Chittoor would disburse financial assistance to dependents of 13 victims who belonged to

Scheduled Tribe under the provisions of the SC/ST (PoA) Rules.

The Commission further directed the investigating officer to get the statements of witnesses

before a competent Magistrate in Tamil Nadu, while Tamil Nadu DGP would continue to

provide adequate protection to witnesses - Sekhar, A. Balachandran and M. Illango and their

families. The Chief Secretary and the Director-General of Police of Andhra Pradesh are to

appear in person before it on June 9 to furnish information and produce records as directed by

the Commission in its earlier proceedings on April 13 and 23.

Meanwhile, Rayachoti Rural Circle Inspector N. Prabhakar said upon receiving credible

information, the Sub-inspectors of Tsundupalle and Sambepalle set up a barricade in front of

the Chinnamandem police station on the Madanapalle-Rayachoti main road on Thursday

night. Around 1.30 a.m., a private bus (TN-21-J-4736) came up from the direction of

Madanapalle and crashed into the barricade.

The driver tried to speed away but police personnel managed to stop it. Mr. Prabhakar and his

staff surrounded the bus and three persons from the vehicle, armed with iron rods, tried to

attack the policemen and fled from the spot. Seventy-two persons on board the bus were

detained, ASP Anbu Rajan said.

No intention to run govt. through L-G: Rajnath Responding to the allegations of Delhi Chief Minister Arvind Kejriwal, Union Home

Minister Rajnath Singh on Friday said the Centre had no intention to run the State

government through the Lieutenant-Governor.

“We do not have any objection to the working of the State government. However, upholding

Constitutional provisions is also our responsibility,” said Mr. Singh at a press conference

here, in reply to a question on the ongoing stand-off between the Delhi government and

Lieutenant-Governor Najeeb Jung.

With the AAP scaling up the battle on issues surrounding the core demand for full Statehood,

the Home Minister said the Centre had not yet given a thought on extending the status to

Delhi. Asked how the Centre intended to deal with the situation if the AAP took to the

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streets, Mr. Singh said it would have to intervene if any law and order issue arose. “Law and

order is my duty,” he said. Through a notification on May 21, the MHA conferred powers on

the Lieutenant-Governor to appoint bureaucrats and also restrained the Anti-Corruption

Branch under the Delhi government from taking action against any Central government

employee.

Parrikar: no date set to roll out one-rank one-pension Defence Minister Manohar Parrikar on Friday said he could not fix a date for the

implementation of the One-Rank One-Pension (OROP) scheme for ex-servicemen.

“OROP was not fully understood by the earlier government. We too didn’t understand the

full implications of it. But I must tell you that all formalities with this regard are over and it is

now with the Finance Ministry,” said Mr. Parrikar, while interacting with a gathering at the

Indian Merchants’ Chamber (IMC) here.

The Defence Minister said the possible allocation estimates for this scheme ranged from Rs.

500 crore to Rs. 20,000 crore. “I have crystallised the format of it. The Finance Ministry will

do the detailing and it is on the way to getting approved,” he said.

Mr. Parrikar said “the sacrifice of our servicemen cannot be measured in money, but I am

very well aware of the reasons why OROP should be implemented and it will be done soon.

We promised that we will give it and we will fulfil it,” he added.

Border firing Accepting that the incidents of firings on the international border between India and Pakistan

had increased from October to January, Mr. Parrikar said the government was better prepared

to deal with it.

“It is either to facilitate safe passage for terrorists or to disturb the repairing of bunkers and

other defence mechanisms,” he said, adding that instances of firing on the Line of Control

(LoC) had actually dropped considerably.

Bofors issue On the controversial issue of Bofors guns, Mr. Parrikar said he still maintained the stand that

those guns were of good quality.

“But quality of guns and scams are two different things. Unfortunately due to the corruption

cases in its deals, it meant 30 years of no new guns for us,” he said, adding that trying Ottavio

Quattrocchi (Italian businessman) “would have saved us all those years.”

P.K. Sinha appointed Cabinet Secretary Prime Minister Narendra Modi on Friday approved the appointment of Pradeep Kumar Sinha,

a 1977 batch IAS officer of Uttar Pradesh cadre, as the next Cabinet Secretary.

Mr. Sinha, who has been serving as Power Secretary since July 2013, will succeed Ajit Seth

whose term ends on June 13. He will soon be attached to the Cabinet Secretariat as OSD till

the commencement of his tenure.

Scientists devise new strategy to starve HIV to death Scientists have found a new strategy to starve the human immunodeficiency virus (HIV) to

death — by blocking its sugar and nutrient pipeline.

Sweet tooth HIV has a voracious sweet tooth, which turns out to be its Achilles’ heel, according to

researchers from Northwestern Medicine and Vanderbilt University. After the virus invades

an activated immune cell, it craves sugar and nutrients from the cell to replicate and fuel its

wild growth throughout the body.

Scientists discovered the switch that turns on the immune cell’s abundant sugar and nutrient

pipeline.

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Then they blocked the switch with an experimental compound, shutting down the pipeline

and, thereby, starving HIV to death. — PTI

Officials milked Uttarakhand disaster When lakhs of people in flood-ravaged Uttarakhand went hungry during the 2013 disaster,

officials of the State government savoured mutton chops, chicken, milk and cottage cheese in

the course of their Rs. 7,000- per-day hotel stay supervising relief efforts.

From claiming Rs. 194 for half a litre of milk to supplying diesel to two-wheelers, claiming

more than Rs. 7,000 per day for hotel stay, paying relief twice to same people, purchasing

1,800 rain coats from the same shop for three days to making payment of Rs. 98 lakh towards

fuel purchase to a helicopter company, a string of financial irregularities has come to light

through responses to RTI queries.

Taking cognisance of these alleged irregularities when Uttarakhand was reeling under one of

the worst natural disasters, State Information Commissioner Anil Sharma has suggested a

CBI probe.

In a 12-page order, passed after hearing complainant Bhupendra Kumar of National Action

Forum for Social Justice, Mr. Sharma has taken note of bills provided by various districts in

response to RTI queries seeking to know details of funds spent on relief work in the aftermath

of the tragedy that claimed 3,000 lives, with many still missing.

Records provided by the authorities showed that some of the relief works began on December

28, 2013, and got over on November 16, 2013, full 43 days before having been launched.

Some other works were shown to have started in Pithoragarh on January 22, 2013, six months

before the tragedy struck on June 16, 2013.

Rajnath to visit Sukma The Union Home Minister Rajnath Singh will visit some interior towns and police camps in

Maoist-sensitive Sukma district of Chhattisgarh during his two-day visit to the State

beginning on Saturday.

Mr. Singh is expected to visit Bhejji police camp situated in what is known as “Maoists’

liberated zone” and will also meet security personnel in Dornapal town of Sukma. He will

also take part in a programme at the Education City in Sukma district headquarters.

Centre convenes meeting on pulses Alarmed over the rising prices of pulses, the Centre has convened a meeting of committee of

secretaries to review the situation. The panel will also look at onion prices as part of advance

planning, sources said.

The concern is in respect of four varieties of pulses. Tur/arhar is selling 50.68 per cent higher

over last year at Rs. 110 per kg, gram dal is higher by 40 per cent at Rs. 70 per kg, urad dal is

up by 53.52 per cent at Rs. 109 per kg and masoor dal is higher by 36.23 per cent at Rs. 94

per kg.

The prices of pulses are appreciating owing to shortfall in production due to inclement

weather and unseasonal rain that hit the rabi pulses production.

There are also reports of hoarding by traders.

The Agriculture Ministry revised downward the production of pulses this year in its third

advance estimates released on May 13.The revised estimates for 2014-15 put pulses output at

17.38 million tonnes as against 18.43 million tonnes for corresponding estimates in 2013-14,

a shortfall of 5.6 per cent.

Crop hit in Myanmar What is worrisome for the government is that no pulses will be available from Canada before

August and from Australia before November.

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The Myanmar pulses crop has been hit by inclement weather as in India, sources said.

Government ‘takes over’ DD News In a sudden move, the Information and Broadcasting Ministry announced the appointment of

Information Service Officer Veena Jain as Director-General of Doordarshan News on Friday

night, in the process, raising questions about the government’s intention to control and

regulate news on the Public Service Broadcaster.

The order announcing Ms. Jain’s appointment categorically states, she will report to the

Ministry for all purposes. Further to her appointment as Director-General News, Ms. Jain will

also hold the dual designation of OSD to the Information and Broadcasting Ministry in

charge of new media.

Ms. Jain takes over from Akshay Rout who was officiating as Director-General News. Ms.

Jain’s appointment comes in the wake of DD’s dwindling viewership and a slump in

revenues.

Curiously, the order dated May 29, is marked to all media heads and the Department of

Personnel, but leaves out the CEO of Prasar Bharati Corporation, the Chairman and the

Prasar Bharati Board.

Ironically, just before the elections, Prime Minister Narendra Modi had questioned the

autonomy of the Prasar Bharati Corporation following the controversy over editing some

portions of the first-ever interview given by the then Prime Minister aspirant.

Mr. Modi had even vented his anguish on twitter when he tweeted, “I feel very sad to see our

National TV channel struggling to maintain its professional freedom.”

The terms of Ms. Jain’s appointment will be seen in the context of the professional freedom

enjoyed by the News Channel of Doordarshan.

INTERNATIONAL RELATIONS Singapore to host first ‘International Yoga Day’ on June 21 Singapore will host the first edition of ‘International Day of Yoga’ on June 21 at about 50

locations across the country.

Supporting the 5,000-year-old physical, mental and spiritual practice that aims to transform

body and mind, High Commissioner Vijay Thakur Singh launched a web portal for online

registration of Singapore participants for the mega event.

“We are expecting thousands of participants from all walks of life,” Mr. Singh told PTI.

The yoga centres include one each at Changi airport, Ion Orchard mall, dormitories of Indian

nationals working here, schools, universities and centres operated by People’s Association,

the leading grassroots body which has joined in hosting the Yoga Day with the High

Commission.

Indian firms in Singapore have also joined the celebrations and would be hosting sessions

within their own network.

U.N. resolution The U.N. adopted an India-led resolution declaring June 21 as ‘International Day of Yoga’ in

December last year, less than three months after Prime Minister Narendra Modi proposed the

idea.

The resolution was overwhelmingly co—sponsored and adopted in the world body,

recognising that “Yoga provides a holistic approach to health and well—being”.

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It was the will of the people, Irish envoy Ireland’s decision to legalise same-sex marriages, through a constitutional amendment, was

an internal resolution to meet the demand of its people and not to influence other countries,

Ambassador of Ireland to India Feilim McLaughlin says.

On whether Ireland hopes its decision to legalise same-sex marriages will be emulated by

other countries, especially those like India where sexual relations between people of the same

sex is a criminal offence, the Ambassador said it was up to other countries to decide for

themselves.

“This [legalising] was not done with a view to influencing other places, countries or societies.

It was an internal decision. There had been opinion polls over a long period that demonstrated

that Irish people wanted change, this was something they felt very strongly about and it was a

decision to satisfy that demand,” he said in an exclusive interview to The Hindu .

He went on to add: “India has a bigger variety of opinions and people of different

background, and it is not for Ireland to suggest or dictate its social policy. Nobody tried to

influence us and why would we try to influence [others].”

Referring to what led to the constitutional amendment in Ireland, he explained:

“Fundamentally, ours is a republic and the government is dictated by the will of the people.

People are sovereign at the end of the day. There is a very well-developed sense of

importance of fairness and equality within the Irish character, there was a sense that the

present situation was unfair.”

About 62 per cent of the Irish electorate voted in favour of same-sex marriages, even as a

large proportion of the country follows the Catholic Church. The consternation expressed by

the Church notwithstanding, Ireland’s decision has been hailed as historic with congratulatory

messages pouring in from across the world; the head of the United Nations, Ban Ki-Moon,

called it Ireland’s way of ensuring no community was left out of society.

Accepting that the reactions were “gratifying”, Ambassador McLaughlin said: “There is a

percentage of Irish people who are gay, and there was a public feeling why shouldn’t they

have the same rights to marry a person of their choosing.”

Opposition He admitted that there was reservation from various quarters, but said that eventually, it was

the will of the people that the government chose to respect. “There was some opposition from

the Church; in fact, a lot of the Church hierarchy were rather philosophical about the result

within Ireland. There were a number of opinion-makers and people in politics who had

reservations about it and campaigned against it [referendum], but the major political parties

voted in favour of it and there was consensus,” he said.

‘No pressure’ He denied pressure from outside Dublin, and said there was a growing attachment of the

people to the idea of a secular republic. “Dublin is a cosmopolitan city; there are people of

various nationalities, faiths and backgrounds living there. This [legalisation] also signifies the

importance that Ireland attaches to equality and social justice.”

Little progress on nuclear deal after ‘breakthrough’ More than four months after Prime Minister Narendra Modi and U.S. President Barack

Obama announced a “breakthrough understanding” to resolve a long-standing impasse in the

bilateral civil nuclear energy agreement, forward movement has apparently ground to a

standstill and neither the government nor the private sector here held out hope for a speedy

resolution.

Responding to queries from The Hindu this week a State Department spokesperson said that

there was “nothing new to announce on the civil nuclear deal at this time.”

Even as early as February, a top State Department official, Assistant Secretary for South and

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Central Asian Affairs Nisha Biswal, indicated that there may not be much more that the two

governments could do to smooth the path for U.S. corporations to supply India with nuclear

reactors.

Ms. Biswal said that while Washington was “still in the process of taking what [India’s latest]

top-line commitments were and trading paper to be able to find the more detailed

understandings,” for the U.S. resolution of this “lingering challenge” hinged on the

convergence between India’s 2010 Civil Liability for Nuclear Damage Act (CLND) and the

1963 CSC.

She emphasised that with the “breakthrough understanding” reached in January, “now it will

be up to the companies to assess for themselves the business case scenarios and make their

own decisions based on the commercial aspects – how to move forward.”

“Nothing happening” One industry source, who spoke to The Hindu on condition of anonymity this week, noted

that there was “nothing happening” since February 8, 2015, when India’s Ministry of

External Affairs provided an FAQ-style “clarification” regarding Section 17 (b) and Section

46 of India’s liability law, which is seen as the primary obstacle to continued momentum in

this space.

Commenting on the much-touted summit meeting between the two leaders in January and the

announcement on the nuclear deal, the source said: “It depends on whom you talk to as to

whether it’s a breakthrough understanding or not. Each [U.S. nuclear supplier] company

makes its own decisions.”

The source added that regarding the MEA’s arguments on the interpretations of the liability

law that could apply in the event of a nuclear accident, New Delhi may have “made selective

use of the legislative history,” both on Section 17 (b) and 46.

For Section 17, the validity of the Indian government’s inclusion of the word “and’ inserted

between clauses (a) and (b) has been questioned, effectively challenging the idea that

“channelled liability” of the supplier by the nuclear operator, was possible only if the contract

between the parties explicitly provided for it in writing.

The understanding on this side of the Atlantic also appears to be that no contract could hope

to supersede the statute or the Constitution of India.

On Section 46, which may allow victims of a nuclear incident to sue the operator or the

supplier for damages using tort law, U.S. nuclear corporations, as yet, appear to be

unconvinced that the liability faced by suppliers will not be prohibitive.

The MEA in February sought to provide assurances on Section 46 citing in favour of its

interpretation the fact that two amendments moved on the section in Parliament, by D. Raja

and Sitaram Yechury respectively, which sought to include suppliers in this provision, were

both negatived.

However not only are there doubts in the U.S. about whether these parliamentary debates

were definitive on this subject, they even questioned the very legislative interpretation of the

remarks made.

Sirisena govt. does not have will to help Tamils, says Wigneswaran Chief Minister of Sri Lanka’s Northern Province, C.V. Wigneswaran, has accused the

country’s Central government of not “having the will” to help Tamils or minorities.

Pointing out that this had been the “characteristic” of what had been taking place in the

country, Mr. Wigneswaran told an international tele-press conference on Thursday night that

“the Central government in Sri Lanka will not do anything towards the minorities or the

Tamils unless they are forced to do something.”

International pressure The conference was organised by the Oakland Institute, an American policy think-tank, in

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connection with the release of two reports on a range of issues concerning Tamils. There had

to be “international pressure” on the government, he insisted.

According to him, the land released by the Army, which continues to control “fertile lands,”

in the Northern Province was “infertile.”

Referring to a star hotel being maintained by the Army in the Province, the Chief Minister

recalled that President Maithripala Sirisena had made an offer to him to take over the hotel

and run it as a conference hall. State Minister of Defence Ruwan Wijewardene had told The

Hindu a few days ago that no decision had yet been taken as there were two views within the

government on the issue.

No exodus of soldiers yet As for the presence of security forces in his province, the Chief Minister said that though

there had been a general call urging soldiers to get back to barracks, there was “no exodus of

soldiers from the northern province which is perceivable by anyone.”

U.N. calls for comprehensive response to migrant crisis The U.N. on Friday called for a “comprehensive response” to the large scale humanitarian

crisis of migrants from Bangladesh and Myanmar, of which nearly 2,000 are still believed to

be stranded in the perilous sea across the Bay of Bengal.

“At the moment the priority should be saving those people who are at sea but in the long

term, obviously, you have to address the root cause of the problem. This has to include efforts

for reconciliation in Rakhine State where there have been ethnic clashes and also the issue of

citizenship has to be addressed by the authorities in Myanmar,” said William Spindler,

spokesperson for the UN Refugee Agency.

On Friday, 17 countries, including India, the U.S., Australia, Japan and the regional countries

of Myanmar, Thailand, Indonesia, Singapore, Malaysia and Bangladesh met in Bangkok to

thrash out a solution to the crisis even as 2,000 people are still believed to be stranded on the

sea. Myanmar and Bangladesh agreed to address the “root causes” of a migrant exodus from

their shores, but critics pilloried a deal that failed to mention the Rohingya minority at the

heart of the crisis. — PTI

BUSINESS/ECONOMY Best yet to come for economy: CEA Chief Economic Adviser Arvind Subramanian said here on Friday that the current financial

year would be better than 2014-15 “by a margin greater than 2014-15 better than 2013-14.”

Dr. Subramanian was reacting to the announcement of the GDP growth of 7.3 per cent in

2014-15, the first year of the NDA regime. “This is very encouraging news….From the point

of view of broader policy-making we are still a recovering economy …We are not an

economy that is at potential; that has implications for what all actors, the government and

everyone has to do to get India back to its growth potential,” Dr. Subramanian told

presspersons. The figures showed that gross fixed capital formation, a barometer for

investments, slowed for the second straight year.

Improving significantly, however, the manufacturing sector grew by 7.1 per cent against the

2013-14 growth of 5.3 per cent. “The encouraging part is the growth in manufacturing, which

would also mean that we are also creating jobs in our growth path,” Finance Secretary Rajeev

Mehrishi told presspersons after the data were released.

The Central Statistics Office on Friday revised downwards the growth figure from its earlier

advance estimate of 7.4 per cent.

The International Monetary Fund has projected that India will outpace China during the

current fiscal year.

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The downward revision is in line with other indicators showing slowing output and sluggish

corporate earnings.

Reserve Bank Governor Raghuram Rajan, who is due to announce a monetary policy review

on Tuesday, had also cautioned on the possibility of a downward revision in the GDP growth.

The prime drivers of the growth were the significantly stronger performance of

‘manufacturing’, ‘electricity, gas, water supply and other utility services’ and the ‘financial,

real estate and professional services’.

Agriculture slumps Almost all sectors of the economy picked up during the year. The exceptions were the sectors

of ‘agriculture, forestry and fishing’, ‘mining and quarrying’ and ‘public administration

defence and other services’ that’s linked to government spending.

In a statement, the Finance Ministry said one broad way of looking at the estimates released

was that those sectors within control of policy manufacturing and services improved

substantially while those dependent on factors beyond the policy control such as agriculture,

which is dependent on weather, and exports, that are dependent on foreign demand, did less

well.

Commenting on the growth figures, Confederation of Indian Industry (CII) Director-General

Chandrajit Banerjee said: “The figures reconfirm CII’s own assessment that the economy is

showing signs of recovery which could gather pace in the next fiscal. ”

Framework notified for MSMEs rehabilitation The Centre on Friday notified a framework for revival and rehabilitation of Micro, Small and

Medium Enterprises (MSMEs), which mandates banks to form a panel to chalk out a

corrective action plan to be adopted for units having stressed accounts.

“It is expected that above Framework help the lenders and debtors in revival and

rehabilitation of enterprises and shall unlock the potential of MSMEs,” the Ministry said.

The salient features of the framework are identification of incipient stress; formation of

committees for distressed MSMEs; and a Corrective Action Plan by the Committee.

“Pending a detailed revision of the legal framework for resolving insolvency/bankruptcy,

there is a felt need for special dispensation for revival and exit of MSMEs.

“The MSMEs facing insolvency/bankruptcy need to be provided legal opportunities to revive

their units. This could be through a scheme for re-organisation and rehabilitation, which

balances the interests of the creditors and debtors,” the Ministry said.

Under the framework, before a loan account of an MSME turns into a non-performing asset

(NPA), banks/creditors are required to identify incipient stress in the account. Any MSME

may also voluntarily initiate proceedings if enterprise reasonably apprehends failure of its

business or its inability or likely inability to pay debts and before the accumulated losses of

the enterprise equals to half or more of its entire net worth. Under the Corrective Action Plan,

the Committee may explore various options to resolve the stress in the account. — PTI

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PIB Memorandum of Understanding between India and Bangladesh on

bilateral cooperation for prevention of human trafficking in women and

children: rescue, recovery, repatriation and re-integration of victims of

human trafficking The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its

approval for signing of a Memorandum of Understanding (MOU) on prevention of human

trafficking especially trafficking in women and children: rescue, recovery, repatriation and

reintegration of victims of human trafficking.

The salient features of the MoU are as follows:

i. To strengthen cooperation to prevent all forms of the human trafficking, especially that of

women and children and ensure the speedy investigation and prosecution of traffickers

and organized crime syndicates in either country;

ii. enumeration of preventive measures that would be taken to eliminate human trafficking in

women and children and in protecting the rights of victims of trafficking; and

iii. repatriation of victims would be done as expeditiously as possible and the home country

will undertake the safe and effective reintegration of the victims.

Background A Task Force of India and Bangladesh was constituted to take coordinated action against

individuals/touts/agents involved in human trafficking and meetings of the Task Force are

being held regularly. Accordingly, four meetings of the Task Force have been held so far.

During the fourth meeting of the Task Force which was held in Mumbai from 6-7th April,

2014, both sides reviewed the progress on decisions taken in the earlier meetings and held

comprehensive discussions and finalized the text of the draft MOU on prevention of human

trafficking.

Revision of the classification/upgradation certain cities/towns on the basis

of Census-2011 for the purpose of grant of House Rent Allowance and

Transport Allowance to Central Government employees The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its

approval to the proposal of the Ministry of Finance, Department of Expenditure for

reclassification/upgradation of certain cities/towns on the basis of Census-2011, for the

purpose of grant of House Rent Allowance (HRA) and Transport Allowance to Central

Government employees. On the basis of the final population figures of Census-2011, two

cities have qualified for being upgraded from 'Y' class to 'X' class and 21 cities have qualified

for being upgraded from 'Z' to 'Y' class for the purpose of HRA. Six cities have qualified for

being upgraded from "Other Places" to specified higher class for the purpose of Transport

Allowance. The revised classification of cities shall take effect from 01.04.2014. The impact

on the exchequer on account of upgradation of 29 cities, would be approx. Rs.128 crore for

the year 2014-15.

Background: HRA and Transport Allowance are admissible to Central Government employees depending

upon employees' Basic Pay (including NPA where applicable)/Grade Pay and the

classification of the city/town where they are posted. The existing classification of

cities/towns in different classes viz. 'X', 'Y' and 'Z' for the purpose of HRA and 13 specified

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cities classified earlier as 'A-1'/ 'A' and "Other Places" for the purpose of Transport

Allowance, is as per the criterion recommended by the 6th

Central Pay Commission. The

existing qualifying limits of population for classification for HRA purpose is 50 lakhs &

above for 'X', 5 - 50 lakhs for 'Y' and below 5 lakhs for 'Z' class city. Transport allowance is

payable at 'higher rates' in 13 specified cities classified earlier as 'A-1' / 'A' (that is those cities

having population of 20 lakhs & above) and at 'lower rates' in all other places.

The classification of cities/towns for this purpose is revised on the basis of their population as

reflected in the decennial census report. The existing classification of vari ous cities/towns is

based on 2001 Census figures. The criterion of population for this purpose has been followed

as recommended by the Central Pay Commissions.

Cities/towns to be upgraded on the basis of census-2011 for grant of House Rent

Allowance

Cities to be upgraded/re-classified as "X" Ahmadabad(UA)

Pune (UA)

Cities to be upgraded/re-classified as "Y" Nellore (UA)

Gurgaon (UA)

Bokaro Steel City (UA)

Gulbarga (UA)

Thrissur (UA)

Malappuram (UA)

Kannur(UA)

Kollam (UA)

Ujjain (M. Coprn.)

Vasai-Virar City (M. Corpn.)

Malegaon (UA)

Nanded-Waghala (M.Corp.)

Sangli (UA)

Raurkela (UA)

Ajmer (UA)

Erode (UA)

Noida (CT)

Firozabad (NPP)

Jhansi (UA)

Siliguri (UA)

Durgapur (UA)

Cities/towns to be upgraded on the basis of census-2011 for grant of Transport

Allowance Cities to be added for higher rates of Transport Allowance (i.e. which have population of

more than 20 lakh to qualify for earlier classification as “A-1”/ “A” as stipulated in O.M. No.

21(2)/2008-E.II(B) dated 29.8.2008):

Patna (UA)

Kochi (UA)

Indore (UA)

Coimbatore (UA)

Ghaziabad (UA)

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The Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement (Amendment) Ordinance, 2015 The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its

approval to amend the Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation and Resettlement (Amendment) Ordinance, 2015.

Changes in the provisions of the Act will facilitate farmers to get better compensation and

rehabilitation and resettlement benefits in lieu of land compulsorily acquired by the

appropriate Government.

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation &

Resettlement Act, 2013 came into effect from 01.01.2014. However, it has been reported that

many difficulties are being faced in the implementation of the Act. In addition, procedural

difficulties in the acquisition of lands required for important national projects required to be

mitigated. In order to remove them, certain amendments were made in the Act while further

strengthening the provisions to protect the interests of the 'affected families'. In view of the

urgency, these were brought about by an Ordinance on 3112.2014. Subsequently, on

10.03.2015 the Lok Sabha passed the Amendment Bill to replace the Ordinance. The

Amendment Bill passed by the Lok Sabha includes some further changes to the Ordinance.

The important changes brought about by the amendment are as follows:

i. Compensation in accordance with the First Schedule and rehabilitation and resettlement

specified in the Second and Third Schedules of the Act are extended to the thirteen Acts

mentioned in the Fourth Schedule of the Right to Fair Compensation and Transparency in

Land Acquisition, Rehabilitation & Resettlement Act, 2013, namely, - (1) The Ancient

Monuments and Archaeological Sites and Remains Act, 1958, (2) The Atomic Energy

Act, 1962, (3) The Damodar Valley Corporation Act, 1948, (3) The Indian Tramways

Act, 1886, (4) The Land Acquisition (Mines)Act, 1885, (6) The Metro Railways

(Construction of Works)Act, 1978, (7) The National Highways Act, 1956; ( 8) The

Petroleum and Minerals Pipelines (Acquisition of Right of User in Land) Act, 1962; (9).

The Requisitioning and Acquisition of Immovable Property Act, 1952; (10) The

Resettlement of Displaced Persons (Land Acquisition) Act, 1948; (11) The Coal Bearing

Areas Acquisition and Development Act, 1957 (12) The Electricity Act, 2003; (13) The

Railways Act, 1989.

ii. In order to expedite the process of land acquisition for strategic and development

activities such as national security or defence of India including preparation for defence

and defence production; rural infrastructure including electrification; affordable housing

and housing for poor; industrial corridors set up by the appropriate government and its

undertakings (in which case the land shall be acquired upto 1 km on both sides of the

designated railway line or roads for such industrial corridors); infrastructure projects

including projects under public private partnership where the ownership of the land

continues to vest with the Government, appropriate governments are empowered to take

steps for exemption from "Social Impact Assessment" and "Special Provisions for

Safeguarding Food Security". In addition acquisition for such projects are exempted from

the "Consent" provisions of the Act as well. However, the appropriate governments are

required to ensure that the extent of land for the proposed acquisition, is the bare

minimum land required for the project. The appropriate government is also required to

undertake a survey of wastelands including arid land and maintain a record detailing the

same.

iii. Prior to the amendment, the provisions of the Right to Fair Compensation and

Transparency in Land Acquisition, Rehabilitation & Resettlement (RFCTLARR) Act

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2013, extended to a 'private company'. However, as per the Companies Act, 2013, a

'Private company’ means a company having a minimum paid-up share capital of one lakh

rupees or such higher paid-up share capital, thereby restricting the provisions of the Act

to such companies only and excluding other form of companies like proprietorships,

partnerships, corporations, nonprofit organizations, etc. Therefore, in place of the term

'private company', the term 'private entity' has been substituted thereby including all

non¬governmental entities.

iv. Further, as The Right to Fair Compensation and Transparency in Land Acquisition,

Rehabilitation & Resettlement Act, 2013 was drafted prior to the passage of the

Companies Act, 2013, the Act referred to the Companies Act, 1956 for the definition of

'Company'; which is substituted by the Companies Act, 2013.

v. In cases where land acquisition process under Land Acquisition Act, 1894 had been

initiated and the Award was passed, but either possession of land was not taken or

compensation was not paid, there is provision of lapsing of such proceedings after five

years of passing of Award. The period during which the proceedings for acquisition of

land was held up on account of any stay or injunction issued by any court is excluded for

the purpose of calculation of five years period. Similarly the period where possession has

been taken but compensation is lying deposited in a court or in any designated account is

also to be excluded in the calculation of the five years.

vi. Section 46 of the Act was amended to clarify that provisions relating to rehabilitation and

resettlement in case of land purchased through private negotiations is applicable in cases

when land is purchased by persons other than the Government, Government Company

and Trust or Society aided or controlled by the Government.

vii. To facilitate the process of hearing of objections by land losers, the authority, constituted

for this purpose, shall hear such objections within the district where the land has been

acquired.

viii. When an offence under this Act is committed by any person who is employed in the

Central or State Government at the time of commission of such an alleged offence, the

court will take cognizance of offences under this Act provided the procedure laid down

in section 197 of the Code of Criminal Procedure, 1973 is followed.

ix. The period provided in Section 101 for return of unutilized land has been modified to

five years or the period specified for the completion of the project.

x. The provision of "Removal of Difficulties" was made applicable to the entire Act rather

than 'Part’ as the word 'part' was used in the Act inadvertently. Further, the time period to

remove the difficulties was extended from two years at present to five years.

Background The Department of Land Resources (DoLR) is administering the Right to Fair Compensation

and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (hereinafter

referred to as Act), 2013. This Act came into force on 01.01.2014 by repealing the Land

Acquisition Act, 1894. It was observed that some provisions of the Act were making the

implementation of the Act difficult and this made it necessary to bring changes in the Act,

while safeguarding the interest of farmers and affected families in cases of land acquisition.

Accordingly, a Conference of State Revenue Ministers was organized in Delhi in June, 2014.

Suggestions received from the State Governments, Union Territories, Ministries/Departments

and other stake holders were considered. Further, consultation with Secretaries and officers of

concerned ministries administering the Acts mentioned in the Fourth Schedule of the Act

were held in October, 2014. Based on these discussions and deliberations, some amendments

were proposed in the Act. Accordingly, the Cabinet in its meeting held on 29.12.2014

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approved the proposal of the Department of Land Resources to amend the RFCTLARR Act,

2013 and to promulgate the Right to Fair Compensation and Transparency in Land

Acquisition, Rehabilitation and Resettlement (Amendment) Ordinance, 2014. The Cabinet

also approved the proposal of the Department to introduce a replacement bill in the

Parliament to replace the Ordinance. Accordingly, RFCTLARR (Amendment) Ordinance,

2014 was promulgated on 3112.2014. The Budget Session of the Parliament that is 4th

Session of the 16th Lok Sabha and 234th Session of Rajya Sabha commenced on

23.02.2015.

The Bill was taken up for consideration and passed by the Lok Sabha on 10.03.2015

incorporating the official amendments to the Bill. The Minister of Rural Development has

also given notice for Motion for Consideration and Passing of the Bill Passed in Lok Sabha to

the Secretary General Rajya Sabha on 13.03.2015. However, the Bill could not be taken up

for consideration in the Rajya Sabha as the Rajya Sabha was adjourned on 20.03.2015.

Agreement on Coastal Shipping between India and Bangladesh The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its

approval to the agreement on Coastal Shipping between India and Bangladesh to carry out

coastal movement of goods between the two countries. Exim trade between India and

Bangladesh would be benefited by way of reduction in freight charges. It will also improve

the utilization of port capacities of Indian ports and open up new opportunity for Indian

coastal vessels. It will also help in decongestion of roads especially at the Land custom

stations/integrated check posts at the Indo-Bangladesh boarder.

The Indian ports serving as transshipment ports for Bangladesh cargo will derive benefits by

way of enhanced throughput as a result of Indo-Bangladesh coastal trade. India and

Bangladesh shall render the same treatment to the other country's vessels as it would have

done to its national vessels used in international sea transportation.

The commencement of coastal shipping between the India and Bangladesh will increase

bilateral trade between the two countries and lower down the cost of transportation of Exim

cargo.

Background India's trade with Bangladesh has grown rapidly during the past few years. Bangladesh is

now India's largest trade partner in South Asia. The opening up of the coastal route between

India and Bangladesh is expected to provide an alternative route for the transportation of

Exim cargo between the two countries.

Currently there is no significant cargo movement between sea Ports of Bangladesh and India

as it is not profitable for the big ocean going vessels to operate between the sea ports of the

two countries. Therefore, to reduce the cost of shipping operation, a lower but pragmatic

standard of vessel known as River Sea Vessel (RSV) has been prescribed for coastal

shipping. The RSV category has significantly lower construction and operation cost without

compromising on the safety of the vessel. For the Indo-Bangladesh coastal shipping, the RSV

category of vessel has been agreed upon by both the countries.

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Memorandum of Understanding between India and Sweden on cooperation

in the field of Micro, Small and Medium Enterprises The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its

approval for signing of the Memorandum of Understanding (MoU) between India and

Sweden on cooperation in the field of Micro, Small and Medium Enterprises.

The objective of the MoU is to promote cooperation between the Micro, Small and Medium

Enterprises of the two countries. It provides a structured framework and enabling

environment to the Micro, Small and Medium Enterprise (MSME) sector of the two countries

to understand each other's strengths, markets, technologies, policies etc. It also contains an

agreement between the two countries to enable their respective MSMEs to participate in each

other's trade fairs/exhibitions and to exchange business delegations, to understand policy and

explore markets so that joint ventures, tie-ups, technology transfer etc. could take place. It

does not contain or involve any financial, legal or political commitment on the part of either

party. In no case does it attract any financial liability on the part of the Government of India.

This kind of cooperation opens up doors of new opportunities for the Indian MSME sector by

way of new markets, joint ventures, sharing of best practices and technology collaborations

etc. The Ministry of MSME has so far entered into long term agreements for cooperation in

the MSME sector with counterpart Ministries/Organisations of 17 countries namely, Tunisia,

Romania, Rwanda, Mexico, Uzbekistan, Lesotho, Sri Lanka, Algeria, Sudan, Cote d'lvoire,

Egypt, Botswana, South Korea, Mozambique, Indonesia, Vietnam and Mauritius.

Memorandum of Understanding between India and Bangladesh on

bilateral cooperation for prevention of human trafficking in women and

children: rescue, recovery, repatriation and re-integration of victims of

human trafficking The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its

approval for signing of a Memorandum of Understanding (MOU) on prevention of human

trafficking especially trafficking in women and children: rescue, recovery, repatriation and

reintegration of victims of human trafficking.

The salient features of the MoU are as follows:

i. To strengthen cooperation to prevent all forms of the human trafficking, especially that of

women and children and ensure the speedy investigation and prosecution of traffickers

and organized crime syndicates in either country;

ii. enumeration of preventive measures that would be taken to eliminate human trafficking in

women and children and in protecting the rights of victims of trafficking; and

iii. repatriation of victims would be done as expeditiously as possible and the home country

will undertake the safe and effective reintegration of the victims.

Background: A Task Force of India and Bangladesh was constituted to take coordinated action against

individuals/touts/agents involved in human trafficking and meetings of the Task Force are

being held regularly. Accordingly, four meetings of the Task Force have been held so far.

During the fourth meeting of the Task Force which was held in Mumbai from 6-7th April,

2014, both sides reviewed the progress on decisions taken in the earlier meetings and held

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comprehensive discussions and finalized the text of the draft MOU on prevention of human

trafficking.

EDITORIALS Caged parrots and the steel frame The former Telecom Regulatory Authority of India (TRAI) Chairman Pradip Baijal’s

interesting account of his years in the Indian Administrative Service (IAS) raises, among

other things, several crucial issues in public administration. Of course his book, The

Complete Story of Indian Reforms: 2G, Power & Private Enterprise — A Practitioner’s

Diary , is better known in the media for some of its “startling revelations” about the 2G scam.

In the book, he gives eloquent expression to his pent-up anguish over his maltreatment,

especially the alleged unleashing of enforcement agencies against him by those who were

annoyed with him for his stubborn stand on a variety of issues. I must say that he sounds

credible if one goes by what has been widely reported across the media and on the debate on

the state of governance in the last decade. This takes me on a brief journey into the country’s

administrative history.

Minister-civil servant relationship Notwithstanding tribulations and moments of despair and disappointment, an average Indian

civil servant, in the first few years after Independence, enjoyed working in a professional

ambience that would become the envy of those who followed him. For about three decades

— till 1975 to be precise — things were quite hunky dory. Barring a few aberrations, an

honest government official could hold his head high and stick to his principles while

discharging his duties, even if it meant being argumentative and difficult in the eyes of his

political superiors.

The Emergency (1975-77) changed all that. From about this point of time, civil servants were

perforce required to kow tow to people who belonged to a strikingly different genre and who

enjoyed wielding their enormous authority in day-to-day administration. The earlier

equilibrium in the polity gradually yielded place to strife and confrontation, and a fear

psychosis started developing even among top civil servants. The healthy relationship that had

existed earlier between minister and civil servant became a thing of the past. In many States

honest dissent even at the highest levels such as the Chief Secretary and the Director General

of Police was resented, and unquestioned obeisance alone rewarded. There has been no

visible change since then in respect of ministerial authoritarianism and hubris.

I do not buy the argument that this power shift is inevitable in a dynamic democracy like

ours. The sharp and honest public servant should be allowed to have his say although he can

be overruled by the political executive in as decorous manner as possible, instead of being

targeted for imaginary charges with the aid and abetment of enforcement agencies like the

Central Bureau of Investigation (CBI) or State Vigilance Bureaus.

The perception now is that the back of the bureaucracy has been broken and its political

neutrality totally wiped out. It is heartening that a small process of recovery has begun at the

Centre, but it may take a long time before its impact becomes measurable.

It is against this backdrop that the memoirs of a few senior civil servants, published in the

recent past, including the recent one by Mr. Baijal will have to be viewed.

Not all the writing may seem distinguished or profound. In fact, Mr. Baijal’s book is

disjointed and gives the impression of having been “assembled from different sources” — all

his own — in a hurry. Some allowance may also have to be given for bias and factual

inaccuracy that inevitably creeps into such accounts.

Working in government One principal charge levelled against all such writers, post-retirement, is that they speak too

late. This is unfair and uninformed criticism. If ever you have worked in government, you

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would understand how scary it is to take on a Minister, especially a person who is a political

heavyweight and one on whom the very survival of a government depends. The fear of

reprisal lasts much longer even after one has hung up one’s boots, given the mystic power of

rehabilitation that many politicians seem to possess. To criticise a senior official for taking

his own time to recapitulate all that he experienced while in service is preposterous. In public

discourse, it is the larger picture painted by them that should count.

Mr. Baijal has had more than his share of highs and lows in a long innings, first as a

Secretary to the Government of India, and later at TRAI. He no doubt had a few good bosses

from the political firmament who valued propriety and decorum. A bright spark like Mr.

Arun Shourie believed in his ability and motivated him to be innovative and daring. As

against this, there was an equal number who did not swear by principles and who did not

fancy the likes of Mr. Baijal.

Leading from the front The gravamen of the charge that Mr. Baijal makes is that two successive Telecom Ministers

pushed an agenda that negated all canons of propriety and governance. He was warned

against quoting rules and procedure that had stood the test of time. He was asked to back off

or else harm would come by him swiftly. One of the two worthies told him imperiously that

he (the Minister) was in fact the “Prime Minister” as far as telecommunications was

concerned. We are fortunate that he did not designate himself the country’s Prime Minister!

Mr. Baijal was also told in no uncertain terms that he should sever all links with the Prime

Minister’s Office (PMO) even when the latter demanded written notes from the Ministry on

burning issues of the day, such as allocation of 2G spectrum. So much for a constitutional

government! Mr. Baijal laments that in all this he received no support from the PMO.

Actually, he was asked to sail along with the stand of the Minister concerned, and not to be

overly bothered about the correctness or ethics of such a stand. The issue at stake here was

not the then Prime Minister’s own integrity, which remains untainted and unchallenged to

this day. What was relevant here was his position as the primus inter pares , and an ability

and willingness to control his Ministers. If he chose to play safe, how could you expect a

puny Secretary to the Minister to do anything different? This is an eternally relevant question

in public administration.

One may dismiss all that Mr. Baijal says as being a case of one man’s word against another.

It is also true that such references to threats and innuendos from the highest in the country’s

Executive can never be proved in a court of law. This is the supreme advantage that many of

our rulers enjoy.Yet I am willing to give credence to the senior official’s account. In the

absence of convincing material against the latter that even remotely suggests dishonesty on

his part, I am inclined to believe the average civil servant.

Test of conduct Mudslinging against a civil servant who complains comes naturally to many in authority, and

it is quite possible that Mr. Baijal is a victim of a malicious campaign. However, what causes

me immense pain is Mr. Baijal’s accusation against the CBI. He says that the Bureau was

programmed to dig up dirt against him at the behest of those who were annoyed with his firm

stand on 2G and related issues. There was a witch hunt against him also for his doings as a

Secretary in the newly formed Ministry for Disinvestment nearly a decade after he

relinquished charge. Perhaps most shocking is alleged direct advice by someone in the CBI

that he could save himself if he roped in a few in the private sector who enjoyed a great

reputation for following business ethics. If this were true, only the almighty can save the

country from politician-driven impropriety on the part of an agency that the highest court of

the land depends so heavily on for ferreting out the truth in many a scandal.

Here again, truth is difficult to explore. The perception of a pliable agency sticks and it is this

that should receive attention from anyone in authority who stands for values in public life.

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What is critical to the situation is how to ensure that the CBI is staffed by good people who

will not swerve from the path of virtue. Autonomy to the CBI — now a cliché — is only one

of the several issues dogging the organisation. What is more important is that its leadership

should be one that should be tested for personal, good conduct and an ability to stand up to

pressures from those who count in government at any point of time. By this yardstick, some

CBI chiefs may be said to have failed the test, and brought ignominy to the organisation. The

probe that the Supreme Court has ordered against a former Director is proof enough that all is

not well with the fabled outfit, one founded by a man of the highest rectitude and in whose

memory the CBI holds an annual lecture.

No clinical process of selection will ensure the installation of an honest and neutral CBI

chief. The selection committee — that comprises the Prime Minister, the Leader of the

Opposition and the Chief Justice of India — has a huge challenge on its hands. In my view,

the tyranny of seniority should be given the short shrift. Character — ascertained through

various sources — should alone prevail. If this sounds too moralistic and ludicrous, let it be

so.

(Dr. R.K. Raghavan is a former CBI Director.)

An issue mishandled After yet another stand-off with agitating Gujjars the Rajasthan government has caved in,

announcing that it would provide the community 5 per cent reservation in jobs. This will be

over and above the 50 per cent reservation extended to backward classes and scheduled castes

and tribes. And crucially, the provision will be included in the Ninth Schedule of the

Constitution so it cannot be challenged in court. Following a series of talks with the

community the government’s hand appears to have been forced by the scale of the protests.

Road and rail traffic in the State was disrupted after thousands of people blocked

commercially significant rail routes and the Jaipur-Agra national highway. The estimated loss

to the Railways is about Rs. 200 crore. The eight-day-long stalemate prompted the Rajasthan

High Court to come down heavily on the government, asking why not a single arrest had

been made. That fact in itself reflects the scale of the problem, but it is one that successive

governments in the State have created for themselves.

Agitations by Gujjars over reservations have been a near-annual event in Rajasthan since

2006. The problem goes back to 2003 when the Rajasthan unit of the BJP promised, in the

run-up to the 2003 election, to have Gujjars included in the Scheduled Tribes list. But the

violent opposition that the move evoked from the numerically stronger Meena community

forced the State government to back down. The anger within the Gujjar community grew to

worrying proportions after the Vajpayee government decided to reclassify Jats as ‘Other

Backward Class’. Faced with immense pressure, the Vasundhara Raje government passed an

Act in 2008 granting 5 per cent reservation to Gujjars and classifying them as a ‘separate

backward community’. In 2010 that Act was struck down by the Rajasthan High Court,

which held that the total quantum of reservation had exceeded the ceiling of 50 per cent as

laid down in the Mandal judgment. Unsurprisingly, this did not go down well with the Gujjar

community, which demanded the promised 5 per cent reservation no matter what. This is

proof, if any were required, that once caste politics is set in motion it creates a vicious cycle

of unsustainable promises. By succumbing to the demands rather than take proactive action to

end the agitation, the Rajasthan government has set a dangerous precedent. For, concessions

made to one community inevitably trigger concerns in others. The Gujjar agitation may have

ended for now, but it is certain to return in other forms.

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Mr. Modi reaches out Ameeting between Prime Minister Narendra Modi and Dr. Manmohan Singh should in the

normal run of democracy have passed without inviting any remarks. Once the heat and

hostilities of an election end, governance should be a cooperative enterprise, with the

incumbent seeking advice or information from the one he succeeds. As Prime Minister, Atal

Bihari Vajpayee, for example, was known to maintain cordial relations with several Congress

leaders, even telling them he wanted to benefit from their experience of longer years in

government. In the current dispensation, too, Finance Minister Arun Jaitley makes it a point

to keep in touch with his predecessor, P. Chidambaram, and Dr. Singh, on matters economic.

This is a healthy practice, and if Mr. Modi and Dr. Singh, as it has subsequently emerged,

discussed the economy and foreign policy, the Prime Minister certainly should be lauded for

reaching out to his predecessor in office, a well-regarded economist.

When Mr. Modi tweeted about the meeting, he left unsaid the fact that it was he who had

initiated the meeting. Therefore it fuelled speculation, especially as the meeting came within

hours of a very public exchange of barbs between the two. At the just-concluded first

anniversary celebration of the government, BJP leaders had spent more time attacking the

UPA government than highlighting its own achievements. A day earlier, a former TRAI

Chairman had accused Dr. Singh of wrongdoing in the 2G spectrum scandal, two months

after the latter was questioned in the coal mine leasing scam, leading to another chain of

speculation. It was only later in the evening, when the Congress realised what was happening

and clarified that Dr. Singh had gone to 7 Race Course Road at the invitation of the Prime

Minister, and that the only subjects discussed were the economy and foreign policy, that the

picture cleared. While it is unclear why Mr. Modi himself did not clarify at the outset how the

meeting had come about, it is evident that the Prime Minister is in need of a better public

image at this point. He is no more in the sweet spot he was just a year ago: the economy is

not doing as well as was hoped, investment is not coming at levels that were anticipated, and

the BJP is yet to recover from the abject defeat it suffered in the Delhi State elections, or

from the jokes about Mr. Modi’s sartorial choices. The Opposition has pinned the

government down on the Land Bill. All this together has taken sheen off the government.

Rhetoric — even the occasional jumla , a word the BJP president recently used to denote an

empty promise — can be forgiven when uttered in the heat of an election campaign. But

when an elected leader and his cohorts seemingly continue to remain in poll mode, people

begin to ask: when will the party we voted to power get down to the serious business of

governance? Mr. Modi needs to change the optics, if not the objective situation itself. And

this meeting is perhaps the first step in that direction.

A new landmark in India-Sweden relations On May 31, Sweden will have the great honour and pleasure of welcoming President Pranab

Mukherjee, on the first ever state visit by an Indian President to Sweden. This historic visit

offers a unique opportunity to deepen our long-standing relationship.

Swedish companies began investing in India in the early 1920s, laying the foundations for the

prosperous partnership between our business communities that is still enjoyed today. Formal

diplomatic relations between India and Sweden were established as early as 1948. Alva

Myrdal, Sweden’s first ambassador to India and winner of the Nobel Peace Prize in 1982 for

her promotion of nuclear disarmament in the United Nations, often claimed to be fired by the

ideals of social justice and pacifism held by Prime Minister Jawaharlal Nehru. Similarly,

former Prime Minister Rajiv Gandhi’s Action Plan for Ushering in a nuclear weapon-free and

non-violent world order sprang from years of close collaboration with Swedish Prime

Minister Olof Palme. India and Sweden also share rich democratic traditions. As the largest

democracy in the world, India is a source of inspiration. The principles of democracy rest on

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human rights — the idea that by virtue of being human, we share the same rights and

freedoms. Our two countries are both engaged in actively promoting and safeguarding these

principles.

Women’s full enjoyment of human rights is a top priority for Sweden, domestically as well as

globally. Rather than perceiving gender equality merely as a goal in itself, we regard equality

to be a prerequisite for achieving our wider foreign and security policy objectives. Sweden’s

feminist foreign policy aims to respond to one of the greatest unresolved problems of our

time, namely that the human rights of women and girls are still being violated in so many

ways around the world. Human rights are women’s rights. Progress in empowering women

and women’s representation and rights benefits society as a whole. It is my firm belief that

India and Sweden can work together as partners to find ways of addressing this critical

challenge, both bilaterally and multilaterally.

Trade and investment Bilateral trade between India and Sweden has increased remarkably over the last few years.

Today, more than 150 Swedish companies are established in India, and one new company is

estimated to be registered every month. These companies provide employment — directly

and indirectly for almost 7,50,000 people in India. As a nation heavily dependent on exports,

Sweden regards free trade as a driver of economic growth, but not at the expense of people or

the planet. For this reason, my government works actively to bring about progressive

international trade agreements that dismantle trade barriers and, at the same time, we promote

corporate social responsibility to protect the rights of employees and the environment.

As one of the largest and fastest growing economies in the world, India is increasingly

attractive to foreign investors. Major reform programmes launched by the government of

India, such as Make in India, Smart Cities and Digital India, send a clear message to the

world: India is open for business and investments.

In the last few years, Sweden and India have signed a long list of agreements in areas such as

science and technology, health, environment and renewable energy. I am truly impressed and

encouraged by the broad range of relations between our two countries and I believe there is

great scope for enhanced collaboration.

Addressing the issue of rapid urbanisation, the Indian government has set out to build 100

smart and sustainable cities. This initiative offers a great opportunity for cooperation between

our two countries. Sweden is a world leader in business solutions and innovation in green

technology, energy and logistics. Investments in the rapidly growing sector of sustainable

urban development are critical for the global environment and the climate challenge that we

face — common challenges that our countries must tackle together.

In September 2014, during his first address to the United Nations General Assembly, Prime

Minister Modi spoke with conviction about an “unwavering belief in multilateralism” deeply

rooted in Indian society. Sweden shares India’s strong commitment to promote global

cooperation within the framework of the United Nations.

The United Nations is the heart of global dialogue. It was founded 70 years ago on the belief

that nations of the world can meet collective challenges only by working together. And in

today’s increasingly uncertain world, effective multilateralism — with the UN at its core —

is perhaps more important than ever. Strong support for the United Nations has always been

— and will always be — key to Sweden’s foreign policy.

Our efforts to internationalise global challenges have proven influential in the past. The

attendance of Prime Minister Indira Gandhi at the United Nations Conference on the Human

Environment in Stockholm in 1972 became a milestone in global environmental cooperation.

Looking ahead towards the upcoming Paris Climate Conference in December, it is significant

that equitable and sustainable development, as defined in Stockholm over 40 years ago, is

now at the top of the agenda. We must continue to push for a resolute international agreement

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addressing climate change. Our collaboration in this area is of great importance to my

government. President Mukherjee’s visit to Sweden represents a new landmark in the

excellent and long-standing relationship between our countries. As Indo-Swedish relations

continue to evolve, our two countries should commit to joint efforts that reflect the shared

values at the heart of our strong relationship.

(Margot Wallström is Minister for Foreign Affairs, Sweden.)

One Year of Narendra Modi Govt.: Bold moves on world stage With Xi Jinping in charge, we now know what the new strong China looks like. With

Narendra Modi in charge, we are finally getting glimpses of what the new strong India will

look like. It will be a radically different India from the one that the world has got used to.

Three new points stand out.

The first transformation is paradoxical. For decades, India has aspired to be a leader of the

non-aligned movement. But it is only now that India is becoming genuinely non-aligned. This

observation is shocking. It deserves an explanation. What does “genuine non-alignment”

mean? At the NAM summit in Cuba in 1979, at the height of the Cold War, then Sri Lankan

President J.R. Jayewardene shrewdly observed that there were only two non-aligned

countries: the United States and the Soviet Union. He added that all other countries were in

one way or another aligned with these two powers. With Modi’s arrival, the list of “genuinely

non-aligned” powers has grown from two to four. It now includes America, Russia, China

and India. Modi has given birth to a truly multipolar world.

There is no doubt that the world is now full of sharp differences between key world leaders;

for example, between US President Barack Obama and Russian President Vladimir Putin, Xi

and Japanese Prime Minister Shinzo Abe, German Chancellor Angela Merkel and Putin, and,

most sharply, between Benjamin Netanyahu of Israel and Ayatollah Khamenei of Iran. It

takes great political and psychological confidence to maintain equally good relations with

such sharply divided leaders. Modi has it. Hence, he can sign deals worth $35 billion with

Abe and then follow up with signing deals worth $22 billion with Xi. If Modi is shrewd, he

can use China-Japan competition to benefit India. For example, he can encourage China and

Japan to compete in delivering the badly needed bullet train services to India. Similarly,

under Modi, India will move even closer to Israel, especially in defence technology. Yet,

Modi has also just signed an agreement to build a port in Chabahar, Iran, which will provide

India a much-needed logistical lifeline to Afghanistan. Only a new strong India under Modi

can get away with such bold moves.

The second transformation was expected. Modi has moved India to the right. But he has done

it in surprising fashion. He has no interest in moving towards the Ronald Reagan-Margaret

Thatcher consensus. Instead, he would rather move towards the Lee Kuan Yew-Deng

Xiaoping consensus. The intellectual output from the Washington DC think-tanks and even

the IMF and World Bank means little to him. Instead, the extraordinary performances of the

East Asian economies mean a lot to him.

Certainly he believes that the private sector has a critical role to play. However, he also

believes that like the other East Asian countries, the governmenthas a key role to play in

economic development. Modi has been criticised for not introducing “big bang” economic

reforms. But his hands are tied politically by his lack of control of the Rajya Sabha. Modi

should, therefore, shrewdly try to implement some of the economic reforms predecessor

Manmohan Singh launched. He has passed the insurance bill. He should now push for the

implementation of the goods and services tax (GST) that the Congress party had proposed. A

national GST would make a massive difference and boost GDP growth by at least 1 per cent

a year. Now trucks delivering goods in India take circuitous routes to maximise tax

avoidance. With a unified GST, they would take the shortest possible routes. The Indian

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economy would become vastly more efficient. In short, there remain many significant

economic reforms within Modi’s grasp. This is why India now enjoys a bubbly new

economic confidence. And double-digit growth rates could become the hallmark of the new

strong India.

The third transformation was unexpected. India could never really emerge as an independent

global power if it could not clean up its act in its regional backyard. Modi understands this. In

the past, India was perceived as a regional bully by its smaller neighbours. Now Modi is

taking a leaf from China’s book and trying to share India’s prosperity with its neighbours.

There has been a major psychological breakthrough with Bangladesh. Forty-one years ago,

the Congress-led government signed a border agreement with Bangladesh with unilateral

border concessions to the latter. Yet, no subsequent Indian government dared to ratify it.

Modi has had the political courage to do so. This has created a new psychological dynamic

with the BBIN (Bangladesh, Bhutan, India and Nepal) countries pushing for new levels of

connectivity, including in electricity and transportation grids. Taking a leaf from Asean’s

famous Asean-x formula, Modi has implemented a Saarc-x formula to boost South Asian

regional cooperation.

Still, challenges remain. Ultimately, Modi will succeed if he can build a broad church in India

to support his reforms. In 1984, the newly elected rightwing governmentof Brian Mulroney

bought a lot of political capital in Canada by appointing a leftwing ambassador to the UN,

Stephen Lewis. Modi can be equally Machiavellian. A few shrewd appointments from the

opposite end of the political spectrum will buy him a lot of domestic political space. With

strong domestic support, he can become even more adventurous on the global stage. The

world will happily welcome this new strong India.

Mahbubani, dean of the Lee Kuan Yew School of Public Policy at the National University of

Singapore, is

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