General Affairs
Key Takeaways From Today's Supreme Court Verdict On Aadhaar
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The Supreme Court on Wednesday upheld the constitutional validity of Aadhaar and said that it empowers the marginalised sections of the society. The ruling, however, came with certain caveats with the top court mandating that the 12-digit identifier will not be required for obtaining SIM cards and opening bank accounts.
In Wednesday's verdict, the apex court also stated that Aadhaar will not be mandatory for school admissions, UGC, NEET and CBSE examinations. However, the linkage of Permanent Account Number (PAN) cards with Aadhaar remains compulsory.
Here is a list of where things stand:
The need to link your bank account with your Aaadhar number has been done away with.
Supreme Court has struck down Section 57 of the Aadhaar Act, hence private companies can no longer ask for a consumer's Aadhaar details.
The 12-digit unique identification number need not be produced at the time of school admissions or enrollment in exams of NEET, CBSE and UGC
The linkage of Aadhaar and PAN remains mandatory. PAN is a 10-digit alphanumeric number issued to assessees by the Income Tax Department and is mandatory for filing income tax returns.
The court also asserted that Aadhaar card will not be provided to illegal migrants.
The apex court asked the central government to introduce a strong data protection law as soon as possible.
A five-judge Constitution Bench headed by Chief Justice Dipak Misra and comprising Justices A K Sikri, AM Khanwilkar, D Y Chandrachud and Ashok Bhushan passed the landmark verdict on a batch of petitions challenging the constitutional validity of Aadhaar and its enabling Act.
The judgement was passed with a 4:1 majority with Justice D Y Chandrachud's having a dissenting view. He stated that Aadhaar may possibly lead to profiling of voters.
Justice AK Sikri read out the verdict and stated that Aadhaar empowers the marginalised section of the society and gives them an identity. "Aadhaar is also different from other ID proofs as it can't be duplicated," he stated.
"It is better to be unique than being the best and Aadhaar is unique," he added.
The Court further said that minimal demographic and biometric data of citizens are collected by the Unique Identification Authority of India (UIDAI) for Aadhaar enrolment and the Aadhaar number given to a person is unique and can't be provided to any other person.
The bench had reserved the judgement in the matter on May 10 after a long-standing hearing that went on for nearly 38 days, spanning over four months.
The challenges against Aadhaar had started even before the law came into existence in 2016. At least 31 petitions, including one by former High Court judge KS Puttaswamy, have been filed in the matter.
During the course of the hearing the court, on March 13, had indefinitely extended the deadline for linking Aadhaar with bank accounts and mobile phone numbers.
The counsel for the petitioners, Shyam Divan, had raised concerns over the 'integrity of the process, integrity of the information and pervasive violation of fundamental rights. He had told the apex court that Aadhaar may cause the 'death of citizens' civil rights'.
While the government and the UIDAI have defended the scheme on every instance by stating that it ensures benefits are distributed among the population in a proper manner and also deters siphoning of funds.
In Wednesday's verdict, the apex court also stated that Aadhaar will not be mandatory for school admissions, UGC, NEET and CBSE examinations. However, the linkage of Permanent Account Number (PAN) cards with Aadhaar remains compulsory.
Here is a list of where things stand:
The need to link your bank account with your Aaadhar number has been done away with.
Supreme Court has struck down Section 57 of the Aadhaar Act, hence private companies can no longer ask for a consumer's Aadhaar details.
The 12-digit unique identification number need not be produced at the time of school admissions or enrollment in exams of NEET, CBSE and UGC
The linkage of Aadhaar and PAN remains mandatory. PAN is a 10-digit alphanumeric number issued to assessees by the Income Tax Department and is mandatory for filing income tax returns.
The court also asserted that Aadhaar card will not be provided to illegal migrants.
The apex court asked the central government to introduce a strong data protection law as soon as possible.
A five-judge Constitution Bench headed by Chief Justice Dipak Misra and comprising Justices A K Sikri, AM Khanwilkar, D Y Chandrachud and Ashok Bhushan passed the landmark verdict on a batch of petitions challenging the constitutional validity of Aadhaar and its enabling Act.
The judgement was passed with a 4:1 majority with Justice D Y Chandrachud's having a dissenting view. He stated that Aadhaar may possibly lead to profiling of voters.
Justice AK Sikri read out the verdict and stated that Aadhaar empowers the marginalised section of the society and gives them an identity. "Aadhaar is also different from other ID proofs as it can't be duplicated," he stated.
"It is better to be unique than being the best and Aadhaar is unique," he added.
The Court further said that minimal demographic and biometric data of citizens are collected by the Unique Identification Authority of India (UIDAI) for Aadhaar enrolment and the Aadhaar number given to a person is unique and can't be provided to any other person.
The bench had reserved the judgement in the matter on May 10 after a long-standing hearing that went on for nearly 38 days, spanning over four months.
The challenges against Aadhaar had started even before the law came into existence in 2016. At least 31 petitions, including one by former High Court judge KS Puttaswamy, have been filed in the matter.
During the course of the hearing the court, on March 13, had indefinitely extended the deadline for linking Aadhaar with bank accounts and mobile phone numbers.
The counsel for the petitioners, Shyam Divan, had raised concerns over the 'integrity of the process, integrity of the information and pervasive violation of fundamental rights. He had told the apex court that Aadhaar may cause the 'death of citizens' civil rights'.
While the government and the UIDAI have defended the scheme on every instance by stating that it ensures benefits are distributed among the population in a proper manner and also deters siphoning of funds.
Meghalaya To Hold Meet To Start National Register Of Citizens "Exercise"
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The Meghalaya government will soon hold an all-party meeting for discussion before embarking on an NRC-like exercise in the state, Chief Minister Conrad K Sangma announced in the assembly today.
He said the Meghalaya Democratic Alliance government is on the job and the state has various ways to check illegal immigration ensuring that indigenous people are protected.
"We intended to call an all-party meeting to discuss with stakeholders before embarking on an exercise such as the NRC," Mr Sangma said.
He was replying to a short duration discussion on news reports that the demand for conducting NRC-like exercise in all the Northeastern states is growing.
The National Register of Citizens (NRC) is a record of all legal citizens and it was created for Assam in 1951. It is being updated under the Supreme Court's supervision with March 24, 1971 as the cut-off date for genuine Indian citizens.
The names of 40.07 lakh applicants did not find a place in the historic document, touted to be a proof of Assamese identity.
"Our government has decided to move ahead with the other preparatory exercises undertaken in the state in a phased-manner beginning with setting up of entry-exit points," the chief minister said.
He said the railway minister had informed him that a facilitation centre could be set up at Mendipathar, the lone railway station in the state connecting Guwahati, to check illegal immigrants.
He said the Meghalaya Democratic Alliance government is on the job and the state has various ways to check illegal immigration ensuring that indigenous people are protected.
"We intended to call an all-party meeting to discuss with stakeholders before embarking on an exercise such as the NRC," Mr Sangma said.
He was replying to a short duration discussion on news reports that the demand for conducting NRC-like exercise in all the Northeastern states is growing.
The National Register of Citizens (NRC) is a record of all legal citizens and it was created for Assam in 1951. It is being updated under the Supreme Court's supervision with March 24, 1971 as the cut-off date for genuine Indian citizens.
The names of 40.07 lakh applicants did not find a place in the historic document, touted to be a proof of Assamese identity.
"Our government has decided to move ahead with the other preparatory exercises undertaken in the state in a phased-manner beginning with setting up of entry-exit points," the chief minister said.
He said the railway minister had informed him that a facilitation centre could be set up at Mendipathar, the lone railway station in the state connecting Guwahati, to check illegal immigrants.
Top Court Junks Plea Against Appointment Of Justice Gogoi As Chief Justice
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The Supreme Court on Wednesday dismissed a plea challenging the appointment of Justice Ranjan Gogoi as the next Chief Justice of India.
A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud said the issue did not need any interference of the court and dismissed it as "without merit".
Petitioner advocate R.P. Luthra contended that his plea was dismissed without even letting him argue.
The bench said: "We find that it is not a case we need to interfere. We do not find merit in this. Your writ of quo warranto is devoid of merit."
RP Luthra started his arguments saying it was yet to be decided whether the bench comprising the Chief Justice can hear his petition.
He contended that a press conference held on January 12 by four senior judges of the court including Justice Gogoi was a virtual revolt against Chief Justice Misra.
This, he argued, amounted to sabotaging the judicial system and Justice Gogoi should have been reprimanded for his "illegal and anti-institutional act".
Chief Justice Misra will demit office on October 2. Justice Gogoi will succeed him the next day.
A bench of Chief Justice Dipak Misra, Justice A.M. Khanwilkar and Justice D.Y. Chandrachud said the issue did not need any interference of the court and dismissed it as "without merit".
Petitioner advocate R.P. Luthra contended that his plea was dismissed without even letting him argue.
The bench said: "We find that it is not a case we need to interfere. We do not find merit in this. Your writ of quo warranto is devoid of merit."
RP Luthra started his arguments saying it was yet to be decided whether the bench comprising the Chief Justice can hear his petition.
He contended that a press conference held on January 12 by four senior judges of the court including Justice Gogoi was a virtual revolt against Chief Justice Misra.
This, he argued, amounted to sabotaging the judicial system and Justice Gogoi should have been reprimanded for his "illegal and anti-institutional act".
Chief Justice Misra will demit office on October 2. Justice Gogoi will succeed him the next day.
Congress To Move Top Court Again On Passage Of Aadhaar Law As Money Bill
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The Congress on Wednesday said it will approach the Supreme Court to reconsider the plea against passage of the legislation as a money bill, while welcoming the Supreme Court verdict striking down certain provisions of the Aadhaar scheme, terming it a "slap" on the BJP's face.
The opposition party said by scrapping the "draconian" Section 57 and the national security exception in the Aadhaar Act, the Supreme Court firmly put an end to a "mass surveillance exercise" being carried out under the guise of Aadhaar by the centre and the "grotesque distortion" of an idea conceived by the previous UPA dispensation.
Congress leader Kapil Sibal also expressed satisfaction over exclusion of private companies from the Aadhaar project and said the idea to involve private companies was not just "undemocratic" but was against the spirit of democracy.
A five-judge constitution bench headed by Chief Justice Dipak Misra on Wednesday held that while Aadhaar scheme was constitutionally valid and would remain mandatory for filing of Income Tax returns and allotment of Permanent Account Number (PAN), it would not be mandatory to link Aadhaar to bank accounts and the telecom service providers cannot seek its linking for mobile connections.
The top court upheld the passage of the Aadhaar Bill as a Money Bill by the Lok Sabha. However, Justice DY Chandrachud, who wrote the judgement separately, said that the Aadhaar Act could not have been passed as Money Bill as it amounted to fraud on the Constitution.
Mr Sibal said his party supports the views of Justice Chandrachud. The Congress party and its leader Jairam Ramesh had challenged the passage of the bill in the House as Money Bill.
"We will approach a seven-judge bench to consider this verdict again as this is clearly not a Money Bill," he said.
Mr Sibal said the party will certainly move the court if amendments in the Aadhaar Act to be brought after this verdict are not brought in Rajya Sabha for discussion.
"If the government does not bring the Act to the Rajya Sabha for amendments, we will definitely move the Supreme Court," he told reporters.
The former union minister alleged that the law violates fundamental right to privacy and is a gross abuse of the Money Bill route.
Money Bills can be introduced only in Lok Sabha and must be returned by the Rajya Sabha to the Lok Sabha within 14 days or the bill is deemed to have been passed by both houses in the form passed by the Lok Sabha. Also Rajya Sabha can only recommend amendments. The Lok Sabha Speaker certifies the bill as a money bill before sending it to the upper house.
The Congress had alleged that the government had moved it as a money bill in 2016 to bypass the Rajya Sabha as it lacked majority in the upper house.
Mr Sibal said the Congress was aware that data of crores of people may have fallen in wrong hands and the court decision will prevent information from going into private hands, .
He said the party may move a petition in this regard for deletion of data already in the hands of private players, saying it concerns their right to privacy.
"We will, if necessary, move court to ensure this data is destroyed," he said.
Mr Sibal noted that the government must see Aadhaar as an administrative tool for delivery of benefits as was originally intended and the Congress party wanted that the marginalised and the poor get the benefits of government schemes and are not left out.
Pointing out some of the grey areas, he said the Congress will also seek to ensure that those who are unable to give biometric details like fingerprints are also enrolled under Aadhaar.
Mr Sibal said the court has made it clear that the government cannot obtain data of individuals without permission from court.
"Had the government not been arrogant and allowed the democratic process to work, none of this would have happened. The result of all this is crores of people's biometric data is now in private hands. This is immeasurable harm done to the polity and democracy in country," he said.
The Congress leader said an individual has the right to move the court if the Act is violated and "we welcome that".
"We welcome the Supreme Court's decision to strike down Section 57 of the Aadhaar Act. Private entities are no longer allowed to use Aadhaar for verification purposes," the Congress said on its official Twitter handle.
Congress leader Abhishek Singhvi also tweeted, saying, "Slap on the face of BJP. Justice Sikri judgement strikes down Section 57 of Aadhaar Act, 2016, which says private body corporates can seek Aadhaar data. Says it's unconstitutional. All plans to monetise biometric data now fail."
He also hailed the Supreme Court's move to disallow metadata to be stored in its current form. "If the information of an individual's personal details is sought to be released, he or she shall have an opportunity to be heard," he said.
Party chief spokesperson Randeep Singh Surjewala said the Supreme Court verdict "upholds the individual's right to privacy".
"Modi Govt's draconian Section 57 quashed - bank account, mobile, school, airlines, travel agents, private entities requiring Aaadhar data quashed," he said on Twitter.
The court has struck down the national security exception under the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016, besides Section 57 which permitted private entities like telecom companies or other corporates to avail Aadhaar data.
The opposition party said by scrapping the "draconian" Section 57 and the national security exception in the Aadhaar Act, the Supreme Court firmly put an end to a "mass surveillance exercise" being carried out under the guise of Aadhaar by the centre and the "grotesque distortion" of an idea conceived by the previous UPA dispensation.
Congress leader Kapil Sibal also expressed satisfaction over exclusion of private companies from the Aadhaar project and said the idea to involve private companies was not just "undemocratic" but was against the spirit of democracy.
A five-judge constitution bench headed by Chief Justice Dipak Misra on Wednesday held that while Aadhaar scheme was constitutionally valid and would remain mandatory for filing of Income Tax returns and allotment of Permanent Account Number (PAN), it would not be mandatory to link Aadhaar to bank accounts and the telecom service providers cannot seek its linking for mobile connections.
The top court upheld the passage of the Aadhaar Bill as a Money Bill by the Lok Sabha. However, Justice DY Chandrachud, who wrote the judgement separately, said that the Aadhaar Act could not have been passed as Money Bill as it amounted to fraud on the Constitution.
Mr Sibal said his party supports the views of Justice Chandrachud. The Congress party and its leader Jairam Ramesh had challenged the passage of the bill in the House as Money Bill.
"We will approach a seven-judge bench to consider this verdict again as this is clearly not a Money Bill," he said.
Mr Sibal said the party will certainly move the court if amendments in the Aadhaar Act to be brought after this verdict are not brought in Rajya Sabha for discussion.
"If the government does not bring the Act to the Rajya Sabha for amendments, we will definitely move the Supreme Court," he told reporters.
The former union minister alleged that the law violates fundamental right to privacy and is a gross abuse of the Money Bill route.
Money Bills can be introduced only in Lok Sabha and must be returned by the Rajya Sabha to the Lok Sabha within 14 days or the bill is deemed to have been passed by both houses in the form passed by the Lok Sabha. Also Rajya Sabha can only recommend amendments. The Lok Sabha Speaker certifies the bill as a money bill before sending it to the upper house.
The Congress had alleged that the government had moved it as a money bill in 2016 to bypass the Rajya Sabha as it lacked majority in the upper house.
Mr Sibal said the Congress was aware that data of crores of people may have fallen in wrong hands and the court decision will prevent information from going into private hands, .
He said the party may move a petition in this regard for deletion of data already in the hands of private players, saying it concerns their right to privacy.
"We will, if necessary, move court to ensure this data is destroyed," he said.
Mr Sibal noted that the government must see Aadhaar as an administrative tool for delivery of benefits as was originally intended and the Congress party wanted that the marginalised and the poor get the benefits of government schemes and are not left out.
Pointing out some of the grey areas, he said the Congress will also seek to ensure that those who are unable to give biometric details like fingerprints are also enrolled under Aadhaar.
Mr Sibal said the court has made it clear that the government cannot obtain data of individuals without permission from court.
"Had the government not been arrogant and allowed the democratic process to work, none of this would have happened. The result of all this is crores of people's biometric data is now in private hands. This is immeasurable harm done to the polity and democracy in country," he said.
The Congress leader said an individual has the right to move the court if the Act is violated and "we welcome that".
"We welcome the Supreme Court's decision to strike down Section 57 of the Aadhaar Act. Private entities are no longer allowed to use Aadhaar for verification purposes," the Congress said on its official Twitter handle.
Congress leader Abhishek Singhvi also tweeted, saying, "Slap on the face of BJP. Justice Sikri judgement strikes down Section 57 of Aadhaar Act, 2016, which says private body corporates can seek Aadhaar data. Says it's unconstitutional. All plans to monetise biometric data now fail."
He also hailed the Supreme Court's move to disallow metadata to be stored in its current form. "If the information of an individual's personal details is sought to be released, he or she shall have an opportunity to be heard," he said.
Party chief spokesperson Randeep Singh Surjewala said the Supreme Court verdict "upholds the individual's right to privacy".
"Modi Govt's draconian Section 57 quashed - bank account, mobile, school, airlines, travel agents, private entities requiring Aaadhar data quashed," he said on Twitter.
The court has struck down the national security exception under the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016, besides Section 57 which permitted private entities like telecom companies or other corporates to avail Aadhaar data.
India, Other G4 Nations Concerned Over Pace Of UN Security Council Reform
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India and the G4 nations voiced concern over the lack of substantive progress in the long-pending Security Council reform, saying it is time to finally initiate text-based negotiations to safeguard the legitimacy and credibility of the powerful UN organ.
The G4 nations, India, Brazil, Germany and Japan, have been calling for the reform of the UN Security Council, and support each others' bids for the permanent seats in the top UN body.
External Affairs Minister Sushma Swaraj hosted her counterparts Aloysio Nunes Ferreira of Brazil, Heiko Maas of Germany and Taro Kono of Japan at a meeting of the G4 nations held on Tuesday at India's Permanent Mission to the UN on the margins of the 73rd session of the UN General Assembly.
In a joint statement after the meeting, the four nations reaffirmed their commitment to multi-lateralism.
"It was time to finally initiate text-based negotiations during the 73rd session of the General Assembly" in line with the standard operating procedures of the UN General Assembly, the ministers said.
They stressed that adapting the United Nations to the contemporary needs of the 21st century necessarily required reforming the Security Council.
"They stressed the need to safeguard the legitimacy and credibility of this UN organ which deals with international peace and security," the statement said.
The G4 Ministers reaffirmed the need for an early reform of the Council including the expansion of both the permanent and non-permanent categories of membership to enhance its legitimacy, effectiveness and representation.
They said that the current composition of the 15-nation Council does not reflect the changed global realities and stressed that the UN Security Council reform is essential to address today's complex challenges.
The ministers reiterated their support for Africa's representation in both categories of membership in a reformed and expanded Security Council.
"As aspiring new permanent members of a reformed Council, the ministers reiterated their commitment to work to strengthen the functioning of the UN and the global multilateral order as well as their support for each other's candidatures," it said.
Reviewing progress on the UN Security Council reform at the Intergovernmental Negotiations (IGN), they said substantial progress had not yet been achieved even though next year would mark 40 years since the inscription of the item 'Question of equitable representation on and increase in the membership of the Security Council and other matters related to the Security Council' on the agenda of the General Assembly.
"Despite an overwhelming majority of UN member states supporting Security Council reform, the IGN has not produced substantive progress over the 10 years since its launch in 2009," the statement said adding that the ministers emphasised the need to revitalise process of the Security Council reform.
The four leaders welcomed the commitment of President of the 73rd session of the General Assembly Maria Fernanda Espinosa Garces to the reform process and expressed their readiness to extend full support to her with a view to launching negotiations based on a text comprising all positions and proposals by the member states.
The ministers agreed that all aspects of the comprehensive reform had been thoroughly discussed several times in the IGN and the General Assembly.
They reiterated their commitment to working with other member states to realise the shared vision of the overwhelming majority supporting the initiation of text-based negotiations in a democratic and transparent manner.
The G4 will intensify dialogue with other member states, especially like-minded countries and groups to achieve meaningful progress in the upcoming IGN session, the four ministers said, adding that they are determined to redouble their efforts towards securing concrete outcomes on the UN Security Council reform during the current session of the General Assembly.
The G4 nations, India, Brazil, Germany and Japan, have been calling for the reform of the UN Security Council, and support each others' bids for the permanent seats in the top UN body.
External Affairs Minister Sushma Swaraj hosted her counterparts Aloysio Nunes Ferreira of Brazil, Heiko Maas of Germany and Taro Kono of Japan at a meeting of the G4 nations held on Tuesday at India's Permanent Mission to the UN on the margins of the 73rd session of the UN General Assembly.
In a joint statement after the meeting, the four nations reaffirmed their commitment to multi-lateralism.
"It was time to finally initiate text-based negotiations during the 73rd session of the General Assembly" in line with the standard operating procedures of the UN General Assembly, the ministers said.
They stressed that adapting the United Nations to the contemporary needs of the 21st century necessarily required reforming the Security Council.
"They stressed the need to safeguard the legitimacy and credibility of this UN organ which deals with international peace and security," the statement said.
The G4 Ministers reaffirmed the need for an early reform of the Council including the expansion of both the permanent and non-permanent categories of membership to enhance its legitimacy, effectiveness and representation.
They said that the current composition of the 15-nation Council does not reflect the changed global realities and stressed that the UN Security Council reform is essential to address today's complex challenges.
The ministers reiterated their support for Africa's representation in both categories of membership in a reformed and expanded Security Council.
"As aspiring new permanent members of a reformed Council, the ministers reiterated their commitment to work to strengthen the functioning of the UN and the global multilateral order as well as their support for each other's candidatures," it said.
Reviewing progress on the UN Security Council reform at the Intergovernmental Negotiations (IGN), they said substantial progress had not yet been achieved even though next year would mark 40 years since the inscription of the item 'Question of equitable representation on and increase in the membership of the Security Council and other matters related to the Security Council' on the agenda of the General Assembly.
"Despite an overwhelming majority of UN member states supporting Security Council reform, the IGN has not produced substantive progress over the 10 years since its launch in 2009," the statement said adding that the ministers emphasised the need to revitalise process of the Security Council reform.
The four leaders welcomed the commitment of President of the 73rd session of the General Assembly Maria Fernanda Espinosa Garces to the reform process and expressed their readiness to extend full support to her with a view to launching negotiations based on a text comprising all positions and proposals by the member states.
The ministers agreed that all aspects of the comprehensive reform had been thoroughly discussed several times in the IGN and the General Assembly.
They reiterated their commitment to working with other member states to realise the shared vision of the overwhelming majority supporting the initiation of text-based negotiations in a democratic and transparent manner.
The G4 will intensify dialogue with other member states, especially like-minded countries and groups to achieve meaningful progress in the upcoming IGN session, the four ministers said, adding that they are determined to redouble their efforts towards securing concrete outcomes on the UN Security Council reform during the current session of the General Assembly.
Business Affairs
4 reasons why MGNREGA is not benefitting workers
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The primary objective of MGNREGA was to enhance livelihood security in rural areas along with creating of durable assets such as building roads and canals. The scheme was ranked as the world's largest public works programme by the World Bank in 2015. The scheme provides a social security net for 15 per cent of our country's population.
But on the ground level MGNREGA is not performing as expected. The promise of 100 days of employment is far from reality. The scheme's under performance can be attributed to insufficient fund allocation, consistent late payment of wages, low wage rates and corruption.
Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), at least 100 days of guaranteed wage employment in a fiscal is provided to any rural household whose adult members volunteer to do unskilled manual work on demand.
Even though the scheme aims at providing 100 days of guaranteed employment, below 50 days of employment was actually provided on an average at an all-India level in FY 18. None of the states were able to provide full 100 days employment as mentioned in the scheme, as per extracts from the latest RBI annual report.
As per the official numbers available on the MGNREGA website, in FY18 average days of employment provided per household was 45.77 which was only 46 in FY17 and 40.17 days in FY15.
Insufficient fund allocation
Budget allocation over the years has been insufficient. The fund that centre allocates during the budget proves to be inadequate and more funds are sought by the rural development ministry to finance MGNREGA. This results in delay in payments which adversely affects workers.
Late payment of Wages
A study by Azim Premji University has found that 78 per cent of payments were not made on time, and as many as 45 per cent payments did not include compensation for delayed payment as per guidelines which is 0.05 per cent per day of the wages earned.
An RTI filed by activist Dinesh Chadha revealed that about 13.17 crore people were registered under the MGNREGA in FY18, Out of these 5.73 crore workers sought work. Only 5.11 crore people were given work under the MGNREGA and only 29.60 lakh workers got full 100 day employment. The reply from the ministry also disclosed that unemployment allowance was paid only to 217 workers during the year.
Late wage payments to workers is a big disappointment as most of these workers are landless agricultural labourers and they depend on schemes like MGNREGA for their survival. Moreover late payment to existing workers discourages other labourers to work for MGNREGA.
Lower wages with minimal hike
On Labour Day 2016, many workers in Jharkhand returned Rs 5 (that year's wage rate hike) to the Prime Minister. The next year on Labour Day workers returned Rupee 1 to the PM. This was done to protest against the meagre hike in the wage rate. In 2018-19, there has been no increment in wage rates in 10 states - Arunachal Pradesh, Bihar, Jharkhand, Mizoram, Nagaland, Rajasthan, Sikkim, Tripura, Uttar Pradesh and Uttarakhand.
Corruption
In 2012, a scam was uncovered in Karnataka where 10 lakh fake job cards were detected, which resulted in Rs 600 crore losses to the exchequer.
In 2018, Rural Development and Panchayath Raj (RDPR) report pointed out that in just one financial year FY18, 596 cases were registered against officials and non-officials for violation of rules and guidelines. Criminal cases were filed against 85 individuals (middlemen) while 306 government officials were suspended from service, 3 lost their job in Karnataka.
Rural workers complain that funds that are sanctioned for public works are going into the pockets of middlemen.
But on the ground level MGNREGA is not performing as expected. The promise of 100 days of employment is far from reality. The scheme's under performance can be attributed to insufficient fund allocation, consistent late payment of wages, low wage rates and corruption.
Under Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), at least 100 days of guaranteed wage employment in a fiscal is provided to any rural household whose adult members volunteer to do unskilled manual work on demand.
Even though the scheme aims at providing 100 days of guaranteed employment, below 50 days of employment was actually provided on an average at an all-India level in FY 18. None of the states were able to provide full 100 days employment as mentioned in the scheme, as per extracts from the latest RBI annual report.
As per the official numbers available on the MGNREGA website, in FY18 average days of employment provided per household was 45.77 which was only 46 in FY17 and 40.17 days in FY15.
Insufficient fund allocation
Budget allocation over the years has been insufficient. The fund that centre allocates during the budget proves to be inadequate and more funds are sought by the rural development ministry to finance MGNREGA. This results in delay in payments which adversely affects workers.
Late payment of Wages
A study by Azim Premji University has found that 78 per cent of payments were not made on time, and as many as 45 per cent payments did not include compensation for delayed payment as per guidelines which is 0.05 per cent per day of the wages earned.
An RTI filed by activist Dinesh Chadha revealed that about 13.17 crore people were registered under the MGNREGA in FY18, Out of these 5.73 crore workers sought work. Only 5.11 crore people were given work under the MGNREGA and only 29.60 lakh workers got full 100 day employment. The reply from the ministry also disclosed that unemployment allowance was paid only to 217 workers during the year.
Late wage payments to workers is a big disappointment as most of these workers are landless agricultural labourers and they depend on schemes like MGNREGA for their survival. Moreover late payment to existing workers discourages other labourers to work for MGNREGA.
Lower wages with minimal hike
On Labour Day 2016, many workers in Jharkhand returned Rs 5 (that year's wage rate hike) to the Prime Minister. The next year on Labour Day workers returned Rupee 1 to the PM. This was done to protest against the meagre hike in the wage rate. In 2018-19, there has been no increment in wage rates in 10 states - Arunachal Pradesh, Bihar, Jharkhand, Mizoram, Nagaland, Rajasthan, Sikkim, Tripura, Uttar Pradesh and Uttarakhand.
Corruption
In 2012, a scam was uncovered in Karnataka where 10 lakh fake job cards were detected, which resulted in Rs 600 crore losses to the exchequer.
In 2018, Rural Development and Panchayath Raj (RDPR) report pointed out that in just one financial year FY18, 596 cases were registered against officials and non-officials for violation of rules and guidelines. Criminal cases were filed against 85 individuals (middlemen) while 306 government officials were suspended from service, 3 lost their job in Karnataka.
Rural workers complain that funds that are sanctioned for public works are going into the pockets of middlemen.
Arun Jaitley hints at new law after Supreme Court bars private companies from using Aadhaar data
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Finance Minister Arun Jaitley, while hailing the Aadhaar verdict, indicated that the provision which allowed private entities to use UIDAI data needs to be backed by law. The Supreme Court on Wednesday struck down Section 57 of the Aadhaar Act.
"If it is backed by law, it is not unconstitutional," Jaitley said when he was asked about Supreme Court striking down Section 57 which allowed 'any body corporate or person' or 'private entity' to demand Aadhaar. "So let us first read the judgement. There are 2-3 prohibited areas. Are they because they are totally prohibited or are they because they need legal backing. So my answer in general, the generic answer will depend on what is the rationale, for instance on these private entities, it needs to be backed by law. That's my understanding. I still have a detailed reading of the judgement to do," Jaitley said.
"Therefore, the prohibited areas do not assume are perpetually prohibited they could be procedurally prohibited or they could be prohibited as such," he added.
The Finance Minister lauded the SC verdict on Aadhaar as historic, adding that the concept of Aadhaar has been accepted after judicial review and the government welcomes the apex court's decision. He added that the use of Aadhaar has helped the government save Rs 90,000 crore a year by plugging leakages in social welfare schemes.
Jaitley said those criticising the unique identification scheme need to understand that they "cannot defy technology". He added that the "mainstream should accept changes, one can understand the fringe being against Aadhaar". He also dismissed the criticism by the Congress party, saying that the grand old party "cuts a very sorry figure here" as it introduced the idea of Aadhaar but "did not know what to do with it".
The Supreme Court, in its ruling, said that Section 57 in the present form is susceptible to misuse. "It can be used for establishing the identity of an individual 'for any purpose'. We read down this provision to mean that such a purpose has to be backed by law," the judgement read.
The court added a caveat that whenever any such "law" is made, it would be subject to judicial scrutiny.
"Apart from authorising the State, even 'any body corporate or person' is authorised to avail authentication services which can be on the basis of purported agreement between an individual and such body corporate or person. Even if we presume that legislature did not intend so, the impact of the aforesaid features would be to enable commercial exploitation of an individual biometric and demographic information by the private entities. Thus, this part of the provision which enables body corporate and individuals also to seek authentication, that too on the basis of a contract between the individual and such body corporate or person, would impinge upon the right to privacy of such individuals. This part of the section, thus, is declared unconstitutional," the apex court's judgment read.
Meanwhile, Ravi Shankar Prasad, Union Minister for Law and Justice and Information and Technology, said the government would soon introduce a data protection law based on the recommendations of the report of the Srikrishna committee on data privacy.
"If it is backed by law, it is not unconstitutional," Jaitley said when he was asked about Supreme Court striking down Section 57 which allowed 'any body corporate or person' or 'private entity' to demand Aadhaar. "So let us first read the judgement. There are 2-3 prohibited areas. Are they because they are totally prohibited or are they because they need legal backing. So my answer in general, the generic answer will depend on what is the rationale, for instance on these private entities, it needs to be backed by law. That's my understanding. I still have a detailed reading of the judgement to do," Jaitley said.
"Therefore, the prohibited areas do not assume are perpetually prohibited they could be procedurally prohibited or they could be prohibited as such," he added.
The Finance Minister lauded the SC verdict on Aadhaar as historic, adding that the concept of Aadhaar has been accepted after judicial review and the government welcomes the apex court's decision. He added that the use of Aadhaar has helped the government save Rs 90,000 crore a year by plugging leakages in social welfare schemes.
Jaitley said those criticising the unique identification scheme need to understand that they "cannot defy technology". He added that the "mainstream should accept changes, one can understand the fringe being against Aadhaar". He also dismissed the criticism by the Congress party, saying that the grand old party "cuts a very sorry figure here" as it introduced the idea of Aadhaar but "did not know what to do with it".
The Supreme Court, in its ruling, said that Section 57 in the present form is susceptible to misuse. "It can be used for establishing the identity of an individual 'for any purpose'. We read down this provision to mean that such a purpose has to be backed by law," the judgement read.
The court added a caveat that whenever any such "law" is made, it would be subject to judicial scrutiny.
"Apart from authorising the State, even 'any body corporate or person' is authorised to avail authentication services which can be on the basis of purported agreement between an individual and such body corporate or person. Even if we presume that legislature did not intend so, the impact of the aforesaid features would be to enable commercial exploitation of an individual biometric and demographic information by the private entities. Thus, this part of the provision which enables body corporate and individuals also to seek authentication, that too on the basis of a contract between the individual and such body corporate or person, would impinge upon the right to privacy of such individuals. This part of the section, thus, is declared unconstitutional," the apex court's judgment read.
Meanwhile, Ravi Shankar Prasad, Union Minister for Law and Justice and Information and Technology, said the government would soon introduce a data protection law based on the recommendations of the report of the Srikrishna committee on data privacy.
Cabinet clears Rs 5,500 crore package for sugar industry
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In third incentive package for sugar mills in four months, the Union government Wednesday announced a Rs 5,500 crore package for the sugar industry, including over two-fold jump in production aid to cane growers and transport subsidy to mills for exports.
The measures since June have ranged from higher price for ethanol extracted from sugarcane to financial assistance to sugar mills to create ethanol capacity and are aimed at helping the cash-starved mills clear Rs 13,000 crore they owe currently to farmers before the 2019 general elections.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, on Wednesday approved a Rs 5,500 crore package to address the surplus production and stock of sugar in the country.
"Last and this year, sugar production is high. It is expected that sugar output next year will remain high. Therefore, a comprehensive policy has been approved by the CCEA to deal with the excess production," Finance Minister Arun Jaitley told reporters after the meeting.
A total assistance of Rs 5,538 crore has been approved to offset cost of cane and facilitate export, he said.
Food Minister Ramvilas Paswan said today's decisions will help stabilise the domestic market and enable mills to make cane payment to growers.
The government will provide financial assistance of Rs 13.88 per quintal cane crushed in 2018-19 marketing year to offset the cost of cane, as against Rs 5.50 per quintal announced for the current 2017-18, ending this month.
The total expenditure on this account would be about Rs 4,163 crore, an official statement said.
That apart, the Centre will provide assistance to mills by compensating expenditure towards internal transport, freight, handling and other charges to facilitate 5 million tonnes (MT) export during the 2018-19 (October-September).
A transport subsidy of Rs 1,000 per tonne will be given for mills located within 100 kms from the ports, Rs 2,500 per tonne for mills located beyond 100 kms from the port in the coastal states and Rs 3,000 per tonne for mills located in other than coastal states or actual expenditure, whichever is lower.
The total expenditure on this account would be about Rs 1,375 crore, the statement said.
"To ensure payment of sugarcane dues of farmers, both the assistance would be credited directly into the accounts of farmers on behalf of sugar mills against cane price dues payable to farmers against FRP (fair and remunerative price) including arrears relating to previous years," it added.
With assembly elections due in some states and upcoming general polls in mid-2019, the government wants to address cane growers payment issue.
These steps will enable mills to boost sugar exports and clear cane arrears, which currently stand at Rs 13,567 crore. Mills in Uttar Pradesh owe the maximum at Rs 9,817 crore to cane farmers.
On the decision, Indian Sugar Mills Association (ISMA) Director General Abinash Verma said that the move will help reduce the industry's cane price liability by around five per cent over the next year's FRP of Rs 275 per quintal of sugarcane.
"This is the largest financial assistance towards FRP ever given by the government of India and will substantially reduce expenditure and working capital requirement of sugar mills in the next year," he said, adding that the transport subsidy will encourage mills to export sugar.
The industry is facing a glut-like situation because of record production of 32 MT in the 2017-18 marketing year (October-September), resulting in a closing stock of 10 MT at the end of this month.
India's sugar output is set to increase further to 35 MT in the next marketing year. The annual domestic demand stands at 26 MT.
The government has taken a slew of measures to bail out sugar mills as well as cane farmers in the last one year.
First, it doubled the import duty on sugar to 100 per cent and then scrapped the export duty on it. It also made it compulsory for millers to export two million tonnes of sugar even as global prices were low.
In June, the government had announced Rs 8,500 crore package for the industry, which included soft loans of Rs 4,440 crore to mills for creating ethanol capacity. It will bear an interest subvention of Rs 1,332 crore for this.
An assistance of Rs 5.50 per quintal of cane crushed was announced, amounting to Rs 1,540 crore to mills. Around Rs 1,200 crore was allocated for the creation of 3 MT buffer stock of sugar. The minimum selling price of the sweetener was fixed at Rs 29 per kg.
Earlier this month, the government had approved an over 25 per cent hike in the price of ethanol produced directly from sugarcane juice for blending in petrol, in a bid to cut surplus sugar production and reduce oil imports.
The measures since June have ranged from higher price for ethanol extracted from sugarcane to financial assistance to sugar mills to create ethanol capacity and are aimed at helping the cash-starved mills clear Rs 13,000 crore they owe currently to farmers before the 2019 general elections.
The Cabinet Committee on Economic Affairs (CCEA), headed by Prime Minister Narendra Modi, on Wednesday approved a Rs 5,500 crore package to address the surplus production and stock of sugar in the country.
"Last and this year, sugar production is high. It is expected that sugar output next year will remain high. Therefore, a comprehensive policy has been approved by the CCEA to deal with the excess production," Finance Minister Arun Jaitley told reporters after the meeting.
A total assistance of Rs 5,538 crore has been approved to offset cost of cane and facilitate export, he said.
Food Minister Ramvilas Paswan said today's decisions will help stabilise the domestic market and enable mills to make cane payment to growers.
The government will provide financial assistance of Rs 13.88 per quintal cane crushed in 2018-19 marketing year to offset the cost of cane, as against Rs 5.50 per quintal announced for the current 2017-18, ending this month.
The total expenditure on this account would be about Rs 4,163 crore, an official statement said.
That apart, the Centre will provide assistance to mills by compensating expenditure towards internal transport, freight, handling and other charges to facilitate 5 million tonnes (MT) export during the 2018-19 (October-September).
A transport subsidy of Rs 1,000 per tonne will be given for mills located within 100 kms from the ports, Rs 2,500 per tonne for mills located beyond 100 kms from the port in the coastal states and Rs 3,000 per tonne for mills located in other than coastal states or actual expenditure, whichever is lower.
The total expenditure on this account would be about Rs 1,375 crore, the statement said.
"To ensure payment of sugarcane dues of farmers, both the assistance would be credited directly into the accounts of farmers on behalf of sugar mills against cane price dues payable to farmers against FRP (fair and remunerative price) including arrears relating to previous years," it added.
With assembly elections due in some states and upcoming general polls in mid-2019, the government wants to address cane growers payment issue.
These steps will enable mills to boost sugar exports and clear cane arrears, which currently stand at Rs 13,567 crore. Mills in Uttar Pradesh owe the maximum at Rs 9,817 crore to cane farmers.
On the decision, Indian Sugar Mills Association (ISMA) Director General Abinash Verma said that the move will help reduce the industry's cane price liability by around five per cent over the next year's FRP of Rs 275 per quintal of sugarcane.
"This is the largest financial assistance towards FRP ever given by the government of India and will substantially reduce expenditure and working capital requirement of sugar mills in the next year," he said, adding that the transport subsidy will encourage mills to export sugar.
The industry is facing a glut-like situation because of record production of 32 MT in the 2017-18 marketing year (October-September), resulting in a closing stock of 10 MT at the end of this month.
India's sugar output is set to increase further to 35 MT in the next marketing year. The annual domestic demand stands at 26 MT.
The government has taken a slew of measures to bail out sugar mills as well as cane farmers in the last one year.
First, it doubled the import duty on sugar to 100 per cent and then scrapped the export duty on it. It also made it compulsory for millers to export two million tonnes of sugar even as global prices were low.
In June, the government had announced Rs 8,500 crore package for the industry, which included soft loans of Rs 4,440 crore to mills for creating ethanol capacity. It will bear an interest subvention of Rs 1,332 crore for this.
An assistance of Rs 5.50 per quintal of cane crushed was announced, amounting to Rs 1,540 crore to mills. Around Rs 1,200 crore was allocated for the creation of 3 MT buffer stock of sugar. The minimum selling price of the sweetener was fixed at Rs 29 per kg.
Earlier this month, the government had approved an over 25 per cent hike in the price of ethanol produced directly from sugarcane juice for blending in petrol, in a bid to cut surplus sugar production and reduce oil imports.
Jio prepares to launch 5G services within 6 months of spectrum allocation: Report
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Less than a week after Telecom Secretary Aruna Sundararajan on Sunday announced that auction of spectrum for 5G services is likely to happen in the latter half of 2019, the buzz is that Reliance Jio is gearing up to be among the first movers.
According to The Economic Times, Reliance Jio is preparing to launch fifth generation telecom services, which can support download speeds 50 to 60 times faster than 4G, within six months of spectrum allocation. In other words, the Mukesh Ambani telco could well launch 5G services in the country by mid-2020.
"Jio has 5G-ready LTE network and we are capable of launching the new technology-based services within five-six months once spectrum is allocated," a company official told the daily, adding that the telco is aggressively deploying optic fibre, which forms the backbone of a 5G network.
Citing a Morgan Stanley report released in December, the daily previously pointed out issues where fibre-backhaul is concerned. The latter is critical to deploy 5G in order to have low latency, low interference and high network capacity, which can transfer data back and forth to the core network, but only about 25% of the incumbent operator sites are currently fiberized. So fibre rollouts is a key near term focus for the telecom sector.
The report added that Jio and Bharti Airtel have both indicated deployment of significant MIMO (Multiple-Input Multiple-Output) and Network Functions Virtualization (NFV) and Software-defined Networking (SDN), to get their networks 5G ready.
Industry experts told the daily that unlike previous upgrades to newer generation of technologies, 5G would take lesser time to go to market, especially for Jio which already has an all IP-based network.
However, the Jio executive claimed that the biggest challenge would be the readiness of the ecosystem, including availability of devices that support the spectrum bands being contemplated for a 5G roll-out. "If you don't have instruments or routers to serve the 5G technology, this would be a challenge," the source explained, adding that the company is in discussions with local as well as multinational vendors to ensure device availability ahead of the commercial rollout.
Globally, devices supporting 5G technology are expected to be available some time in 2019, starting with the high-end models. Dominant chipset makers like US-based Qualcomm and Taiwanese MediaTek are currently developing 5G-based modems.
The government, which is determined not to miss the 5G bus - as telecom minister Manoj Sinha put it, referring to the country playing catch up with 2G, 3G and 4G - intends to give experimental licenses for telcos to develop test beds to evolve a full-fledged 5G eco-system.
According to Sundararajan, before the spectrum auction, the Department of Telecommunications wants to provide a one-year timeframe for trials with experimental spectrum. In fact, DoT has reportedly already invited Jio, Airtel, Vodafone Idea and state-owned Bharat Sanchar Nigam Ltd (BSNL) for field trials.
In any case, 5G rollout is expected to happen much faster than the older services. "As long as monetisation avenues and opportunities are properly identified, rollout would not take long because there is no requirement for replacing hardware as it was done to upgrade from 3G to 4G services," said Sundararajan.
According to The Economic Times, Reliance Jio is preparing to launch fifth generation telecom services, which can support download speeds 50 to 60 times faster than 4G, within six months of spectrum allocation. In other words, the Mukesh Ambani telco could well launch 5G services in the country by mid-2020.
"Jio has 5G-ready LTE network and we are capable of launching the new technology-based services within five-six months once spectrum is allocated," a company official told the daily, adding that the telco is aggressively deploying optic fibre, which forms the backbone of a 5G network.
Citing a Morgan Stanley report released in December, the daily previously pointed out issues where fibre-backhaul is concerned. The latter is critical to deploy 5G in order to have low latency, low interference and high network capacity, which can transfer data back and forth to the core network, but only about 25% of the incumbent operator sites are currently fiberized. So fibre rollouts is a key near term focus for the telecom sector.
The report added that Jio and Bharti Airtel have both indicated deployment of significant MIMO (Multiple-Input Multiple-Output) and Network Functions Virtualization (NFV) and Software-defined Networking (SDN), to get their networks 5G ready.
Industry experts told the daily that unlike previous upgrades to newer generation of technologies, 5G would take lesser time to go to market, especially for Jio which already has an all IP-based network.
However, the Jio executive claimed that the biggest challenge would be the readiness of the ecosystem, including availability of devices that support the spectrum bands being contemplated for a 5G roll-out. "If you don't have instruments or routers to serve the 5G technology, this would be a challenge," the source explained, adding that the company is in discussions with local as well as multinational vendors to ensure device availability ahead of the commercial rollout.
Globally, devices supporting 5G technology are expected to be available some time in 2019, starting with the high-end models. Dominant chipset makers like US-based Qualcomm and Taiwanese MediaTek are currently developing 5G-based modems.
The government, which is determined not to miss the 5G bus - as telecom minister Manoj Sinha put it, referring to the country playing catch up with 2G, 3G and 4G - intends to give experimental licenses for telcos to develop test beds to evolve a full-fledged 5G eco-system.
According to Sundararajan, before the spectrum auction, the Department of Telecommunications wants to provide a one-year timeframe for trials with experimental spectrum. In fact, DoT has reportedly already invited Jio, Airtel, Vodafone Idea and state-owned Bharat Sanchar Nigam Ltd (BSNL) for field trials.
In any case, 5G rollout is expected to happen much faster than the older services. "As long as monetisation avenues and opportunities are properly identified, rollout would not take long because there is no requirement for replacing hardware as it was done to upgrade from 3G to 4G services," said Sundararajan.
Sensex sees a deep dive; this is how much wealth eroded in September
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After touching an all-time high of 38,896.6 on August 28, 2018, the Sensex slipped in red in 13 out of the 18 trading sessions till date. It slumped the most -- around 977 points in two consecutive trading sessions -- between September 07 and 11 September, 2018. The bullish rally seen in the equity markets in 2016 and 2017 made a weak entry in 2018. After a brief rally in the beginning of the year, markets turned choppy starting May. The Sensex has declined in 10 sessions in the month of August and September (till date). On Tuesday, the index settled at 36,652.06, up 347 points. The 30-share index is still down nearly 6 per cent since its record high hit on August 28, 2018.
So, how does it impact an investor's wealth? Wealth erosion is certain; there is no doubt about it. To get a broader sense of the market, we have assumed an investment of Rs 1 lakh in the Sensex, the Midcap index and the Smallcap index at the beginning of this month. An investment of Rs 1 lakh yielded a negative return of 4.3 per cent in Sensex, 9.1 per cent in Midcap and 11.3 per cent in Smallcap till September 25, 2018.
Smallcaps and Midcaps remained the worst hit in the last few days. To put things in perspective, one needs to retrospect the move that we have seen since January 2018. "Smallcaps and Midcaps were hot on the streets as everyone was jumping into them and then a correction was seen which was very deep. Post that, the rally we have seen in broader indices was supported broadly by the largecaps as compared to a bullish rally we saw in 2016-2017. So, when the market got weaker, smallcaps and midcaps were first to get hammered simply because they were relatively weaker in the present structure as compared to the large-cap stocks or sector," explains Mustafa Nadeem, CEO, Epic Research.
The fall we have seen now could be followed by a correction that can last till October. "All this fiasco will take out some weak money from the market and of course when the time is right and valuations are cheap in terms of price, we may see value-buying coming in. But it is too soon to say we are near a bottom. That phase may take a month or two going forward," adds Nadeem.
Going forward, one should not get aggressive to dive into the market as this is a shake-off that hurt not just the retail investors but also institutional players.
So, how does it impact an investor's wealth? Wealth erosion is certain; there is no doubt about it. To get a broader sense of the market, we have assumed an investment of Rs 1 lakh in the Sensex, the Midcap index and the Smallcap index at the beginning of this month. An investment of Rs 1 lakh yielded a negative return of 4.3 per cent in Sensex, 9.1 per cent in Midcap and 11.3 per cent in Smallcap till September 25, 2018.
Smallcaps and Midcaps remained the worst hit in the last few days. To put things in perspective, one needs to retrospect the move that we have seen since January 2018. "Smallcaps and Midcaps were hot on the streets as everyone was jumping into them and then a correction was seen which was very deep. Post that, the rally we have seen in broader indices was supported broadly by the largecaps as compared to a bullish rally we saw in 2016-2017. So, when the market got weaker, smallcaps and midcaps were first to get hammered simply because they were relatively weaker in the present structure as compared to the large-cap stocks or sector," explains Mustafa Nadeem, CEO, Epic Research.
The fall we have seen now could be followed by a correction that can last till October. "All this fiasco will take out some weak money from the market and of course when the time is right and valuations are cheap in terms of price, we may see value-buying coming in. But it is too soon to say we are near a bottom. That phase may take a month or two going forward," adds Nadeem.
Going forward, one should not get aggressive to dive into the market as this is a shake-off that hurt not just the retail investors but also institutional players.
General Awareness
Ease of Living index
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What to study?
For Prelims: Performance of various states.
For Mains: Ease of Living index and its significance.
Context: Ease of Living index has been released.
Andhra Pradesh has topped Ease of Living Index rankings under AMRUT (Atal Mission for Rejuvenation and Urban Transformation).
It is followed by Odisha and Madhya Pradesh.
About the Ease of Living index:
The index has been developed to allow city managers to get a grip on the city’s baseline and compare its performance across key indicators. The first edition of index released in January 2018 had ranked 111 Indian cities and was topped by Pune.
The index covers 116 cities that are smart city contenders, capital cities, and cities with population of 1 million plus.
The index captures the quality of life based on the data collected from the urban local bodies on four parameters, which were further broken down into 15 categories.
The four parameters include institutional (governance), social (identity, education, health, security), economic (economy, employment) and physical factors (waste water and solid waste management, pollution, housing/ inclusiveness, mixed land use, power and water supply, transport, public open spaces).
Institutional and social parameters carry 25 points each, physical factors have a weightage of 45 points and economic factors five points totalling to a 100 mark scale on which cities were evaluated.
About AMRUT:
AMRUT is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
It adopts a project approach to ensure basic infrastructure services relating to water supply, sewerage, storm-water drains, transportation and development of green spaces and parks with special provision for meeting the needs of children.
Under this mission, 10% of the budget allocation will be given to states and union territories as incentive based on the achievement of reforms during the previous year.
AMRUT will be implemented in 500 locations with a population of one lakh and above. It would cover some cities situated on stems of main rivers, a few state capitals and important cities located in hilly areas, islands and tourist areas.
Under this mission, states get the flexibility of designing schemes based on the needs of identified cities and in their execution and monitoring. States will only submit state annual action Plans to the centre for broad concurrence based on which funds will be released. But, in a significant departure from JNNURM, the central government will not appraise individual projects.
Central assistance will be to the extent of 50% of project cost for cities and towns with a population of up to 10 lakhs and one-third of the project cost for those with a population of above 10 lakhs.
Under the mission, states will transfer funds to urban local bodies within 7 days of transfer by central government and no diversion of funds to be made failing which penal interest would be charged besides taking other adverse action by the centre.
What to study?
For Prelims: Performance of various states.
For Mains: Ease of Living index and its significance.
Context: Ease of Living index has been released.
Andhra Pradesh has topped Ease of Living Index rankings under AMRUT (Atal Mission for Rejuvenation and Urban Transformation).
It is followed by Odisha and Madhya Pradesh.
About the Ease of Living index:
The index has been developed to allow city managers to get a grip on the city’s baseline and compare its performance across key indicators. The first edition of index released in January 2018 had ranked 111 Indian cities and was topped by Pune.
The index covers 116 cities that are smart city contenders, capital cities, and cities with population of 1 million plus.
The index captures the quality of life based on the data collected from the urban local bodies on four parameters, which were further broken down into 15 categories.
The four parameters include institutional (governance), social (identity, education, health, security), economic (economy, employment) and physical factors (waste water and solid waste management, pollution, housing/ inclusiveness, mixed land use, power and water supply, transport, public open spaces).
Institutional and social parameters carry 25 points each, physical factors have a weightage of 45 points and economic factors five points totalling to a 100 mark scale on which cities were evaluated.
About AMRUT:
AMRUT is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
It adopts a project approach to ensure basic infrastructure services relating to water supply, sewerage, storm-water drains, transportation and development of green spaces and parks with special provision for meeting the needs of children.
Under this mission, 10% of the budget allocation will be given to states and union territories as incentive based on the achievement of reforms during the previous year.
AMRUT will be implemented in 500 locations with a population of one lakh and above. It would cover some cities situated on stems of main rivers, a few state capitals and important cities located in hilly areas, islands and tourist areas.
Under this mission, states get the flexibility of designing schemes based on the needs of identified cities and in their execution and monitoring. States will only submit state annual action Plans to the centre for broad concurrence based on which funds will be released. But, in a significant departure from JNNURM, the central government will not appraise individual projects.
Central assistance will be to the extent of 50% of project cost for cities and towns with a population of up to 10 lakhs and one-third of the project cost for those with a population of above 10 lakhs.
Under the mission, states will transfer funds to urban local bodies within 7 days of transfer by central government and no diversion of funds to be made failing which penal interest would be charged besides taking other adverse action by the centre.
For Prelims: Performance of various states.
For Mains: Ease of Living index and its significance.
Context: Ease of Living index has been released.
Andhra Pradesh has topped Ease of Living Index rankings under AMRUT (Atal Mission for Rejuvenation and Urban Transformation).
It is followed by Odisha and Madhya Pradesh.
About the Ease of Living index:
The index has been developed to allow city managers to get a grip on the city’s baseline and compare its performance across key indicators. The first edition of index released in January 2018 had ranked 111 Indian cities and was topped by Pune.
The index covers 116 cities that are smart city contenders, capital cities, and cities with population of 1 million plus.
The index captures the quality of life based on the data collected from the urban local bodies on four parameters, which were further broken down into 15 categories.
The four parameters include institutional (governance), social (identity, education, health, security), economic (economy, employment) and physical factors (waste water and solid waste management, pollution, housing/ inclusiveness, mixed land use, power and water supply, transport, public open spaces).
Institutional and social parameters carry 25 points each, physical factors have a weightage of 45 points and economic factors five points totalling to a 100 mark scale on which cities were evaluated.
About AMRUT:
AMRUT is the new avatar of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
It adopts a project approach to ensure basic infrastructure services relating to water supply, sewerage, storm-water drains, transportation and development of green spaces and parks with special provision for meeting the needs of children.
Under this mission, 10% of the budget allocation will be given to states and union territories as incentive based on the achievement of reforms during the previous year.
AMRUT will be implemented in 500 locations with a population of one lakh and above. It would cover some cities situated on stems of main rivers, a few state capitals and important cities located in hilly areas, islands and tourist areas.
Under this mission, states get the flexibility of designing schemes based on the needs of identified cities and in their execution and monitoring. States will only submit state annual action Plans to the centre for broad concurrence based on which funds will be released. But, in a significant departure from JNNURM, the central government will not appraise individual projects.
Central assistance will be to the extent of 50% of project cost for cities and towns with a population of up to 10 lakhs and one-third of the project cost for those with a population of above 10 lakhs.
Under the mission, states will transfer funds to urban local bodies within 7 days of transfer by central government and no diversion of funds to be made failing which penal interest would be charged besides taking other adverse action by the centre.
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