Saturday 19 March 2011

Gist of YOJANA Magazine

DO YOU KNOW
THE INDO-US NUCLEAR DEAL: BASIC FACTS
India and the United States signed a landmark deal in October 2008, which allows India access to US
civil nuclear fuel and technology. What is it that makes this deal so significant? How does India stand
to gain from it? Here are some answers to these questions:

What is the Indo-U.S. Civilian Nuclear Deal?
• This is a deal between India and the United States for civil nuclear cooperation. Under this
agreement, the United States can sell civilian nuclear fuel and technology to India. India in turn,
has to separate its civil and military nuclear facilities and place all its civil nuclear facilities
under International Atomic Energy Association (IAEA) inspection. The accord took three years
to be finalized, during which it went through a series of complex stages that included
amendment of U.S. domestic law, formulation of a civil-military nuclear separation plan in
India, an India-IAEA safeguards (inspections) agreement and the grant of an exemption for
India by the Nuclear Suppliers' Group (NSG).
What are the Hyde Act and the 123 Agreement?

• Under Section 123 of its Atomic Energy Act, the United States can enter into civilian nuclear
trade only with those countries that have signed the NPT and CTBT. India has signed neither
treaty. Further, after its first nuclear test in 1974, the United States had placed a ban on the
supply of nuclear fuel and technology to India. In order to sign the present deal, the section 123
of the Atomic Energy Act needed to be amended. The Hyde Act 2006, a domestic Act of the
United States, was accordingly brought in to amend this Section and provide a legal framework
for a 123 Agreement with India. With this agreement India becomes the only non-NPT/CTBT
signatory to have signed the 123 Agreement with the United States.
Who are the Nuclear Suppliers Group?

• Nuclear Suppliers Group (NSG) is a 45 nation body concerned with reducing nuclear
proliferation by controlling trade in nuclear fuel and technology. Their policies had so far kept
India out of bounds of international nuclear trade as it has not signed the NPT and CTBT. Some
countries in the NSG had misgivings about giving India the unprecedented waiver of carrying
on international civil nuclear trade even without signing the NPT, but the approval finally came
through keeping in view India's strong non-proliferation records, and its voluntary declaration
of "no first use" of nuclear weapons.
What does India get from the Agreement?

• Indo-US Civil nuclear deal has paved the way for the growth of the nuclear power sector in
India, which has so far been plagued by shortages of nuclear fuel. India has limited reserves of
Uranium, which is the crucial fuel needed at the present stage of our nuclear power program.
Due to the shortage of uranium,

India's nuclear power generation is only about 1800 Mw against an installed capacity of 4120
Mw. With the present agreement, which is valid for 40 years and extend able by another 10
years, India hopes to address this fuel shortage. Under this agreement the US is committed to
ensure uninterrupted fuel supply to safeguard Indian reactors and create strategic fuel reserves
for them, and also work with other NSG countries to ensure. supply of nuclear fuel to India. The
ambit of the deal includes research, development, design, construction, operation, maintenance
and use of nuclear reactors, reactor experiments and decommissioning. To ensure smoothness,
the agreement provides for elaborate consultations between the two parties in the event of either
side wanting to terminate the deal before its normal time.


• Further, the agreement also lays down the clause of "non-interference" in India's strategic
program. Thus, the Indian nuclear power program stands to get a much needed push without
any threat to its strategic program.
And what does India give?

• As part of the bargain India has agreed for separation of its nuclear facilities, placing the
civilian facilities under IAEA safeguards in perpetuity. The safeguard is aimed at ensuring that
the nuclear material or technology brought in for civilian purposes is not diverted for military
use. Out of its 22 operating/under construction nuclear facilities, India will place 14 under
IAEA safeguard.
REDUCING GHG EMISSIONS:THE KYOTO MECHANISMS
The Kyoto Protocol has put in place three flexibility mechanisms to reduce emission of Green House
Gases. Although the Protocol places maximum responsibility of reducing emissions on the developed
countries by committing them to specific emission targets, the three mechanisms are based on the
premise that reduction of emissions in any part of the globe will have the same desired effect on the
atmosphere, and also that some developed countries might find it easier and more cost effective to
support emissions reductions in other developed or developing countries rather than at home. These
mechanisms thus provide flexibility to the Annexure I countries, helping them to meet their emission
reduction obligations. Let us take a look at what these mechanisms are.
What are the three flexibility mechanisms put in place of the Kyoto Protocol for reducing GHG
emission?

• The three mechanisms are joint implementation. Emissions Trading and Clean Development
What is Joint Implementation?

• Through the Joint Implementation, any Annex I country can invest in emission reduction
projects (referred to as joint Implementation Project) in any other Annex I country as an
alternative to reducing emissions domestically.

• Two early examples are change from a wet to a dry process at a Ukraine cement works,
reducing energy consumption by 53 percent by 2008-2012; and rehabilitation of a Bulgarian
hydropower project, with a 267,000 ton reduction of C02 equivalent during 2008-2012.
What is Clean Development Mechanism?

• The Clean Development Mechanism (CDM) allows-'l developed country with an emission
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reduction or emission-limitation commitment under the Kyoto Protocol to implement an
emission reduction project in developing countries as an alternative to more expensive emission
reductions in their own countries. In exchange for the amount of reduction In emission thus
achieved, the investing gets carbon credits which it can offset against its Kyoto targets. The
developing country gains a Step towards sustainable development.

• To get a CDM project registered and implemented, the investing country' has to first take
approval from the designated national authority in the host country, establish "Additionally",
define baselines and get the project validated by a third party agency, called a Designated
Operational Entity (DOE). The Executive Body of CDM registers the project and issues credits,
called Certified Emission Reductions (CERs), or carbon credits, where each unit is equivalent
to the reduction of one metric tonne of. C02 or its equivalent. There are more than 4200 CDM
projects in the pipeline as on 14.3.2010. The expected CERs till the end of2012 is
2,900,000,000
What is "Additionality" in a CDM project ?

• The feature of "additionality" is a crucial element of a CDM project it means that the
industrialized country that is seeking to establish the CDM project in the developing country
and earns carbon credits from it has to establish that the planned carbon reductions would not
have occurred on its own, in the absence of the CDM project. They have to establish a baseline
of the project. Which is the emission level that would have been there in the absence of the
project. The difference between this baseline level and the (lower) emission level achieved as a
result of the project is the carbon credit due to the investing country
What are some of the concerns regarding CDM ?

• The risk of “false Credits" is a cause for concern with regard to CDM projects. If a project does
not actually offer an additionally and the reduction in emission would have happened anyway
Even without the project.
THE WOMEN’S RESERVATION BILL
It was a momentous development when the Women's Reservation Bill was passed by the Rajya Sabha
on the 9th of March, 2010. For more than ten years now, the Bill has led to heated debates in the
Parliament, with supporters saying that it will pave the way for an active participation of women in
politics, and detractors saying that it will benefit only a narrow spectrum of privileged women. Let us
take a look at what the Bill has to offer, and what the controversy is all about.
What does the Women's Reservation Bill provide?

• The Women's Reservation Bill is a proposed legislation to reserve 33.3 per cent of seats in
Parliament and State legislatures for women. This would mean reserving 181 of the 543 seats in
the Lok Sabha and 1,370 out of a total of 4,109 seats in the 28 State Assemblies for women. In
case of seats reserved for SC-ST candidates, 33.3 percent would have to be reserved for women.
The reservation of seats is proposed to be on rotation basis, which means that the 33.3 % seats
reserved in one election would cease to be reserved in the next election. In its place, another set
of seats totaling 33.3 % would get reserved. The provision for reservation is proposed to be in
place for 15 years.

• The Bill is an extension of the 33.3 % reservation of seats for women in the Panchayats to the
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State Legislatures and the Pm-ti1Gllent. Reservation for women in Panchayats has resulted in
probably one of the largest mobilization of women in public life in the world.
How did the Bill originate?

• The proposed legislation was first introduced in the Lok Sabha on September 12, 1996 by the
United Front government as the 81 st Constitutional Amendment Bill. In 1998 it was reintroduced
in the 12th Lok Sabha as the 84th Constitutional Amendment Bill by the National
Democratic Alliance (NDA) government. It was reintroduced again in 1999, 2002, 2003. In
2004 it was included in the Common Minimum Program of the UPA government. All these
years the Bill could not be passed because of lack of political consensus. It was again tabled in
the Rajya Sabha in 2008, and has now been passed by the Rajya Sabha in 2010.
What is the objective of the Bill?

• The Bill is aimed at fostering gender equality in Parliament, which in turn would lead to the
empowerment of women as a whole. It is expected that increased political participation will
help Indian women fight against the age old discrimination and deprivation they have been
subjected to, and the inequality they suffer from. The Bill, it is felt, would create a level playing
field for the women to enhance their presence and status in politics initially and in society
eventually.
What are the apprehensions regarding the Bill?

• Some political parties are apprehensive that the reservation for women would rob the chances of
many of their male leaders to fight elections. Coupled with the reservation that already exists
for the Scheduled Castes and Scheduled Tribes, a further reservation for women would be
discriminatory for other sections of people. Others say that the reservation would benefit only
elite women, causing further discrimination and under representation to the poor and backward
classes. They are opposed to the bill in its present form and want a quota within quota for
women from backward classes. It is also felt that rotation of seats being reserved may reduce
the commitment of the elected MPs to their constituencies as their chances of getting reelected
would be very little.


What is the status of the Bill now?
• The Bill, which is also the Constitution (108thAmendment) Bill, was passed by the Rajya Sabha
on 9th March 2010. It will now be tabled in Lok Sabha. Once approved by both houses, it will
be sent for Presidential consent and then become a law, giving 33% reservation to women in
Parliament and State Assemblies. The reservation will remain in place for 15 years and then be
extended, if necessary.
HUMAN DEVELOPMENT INDEX
What is the Human Development index (HDl) ?
HDI is a composite statistic used as an index to rank countnes1'>y the level of "human development"
The statistic is composed from statistics for life expectancy education, and standard of living, collected
at the national level using a predetermined formula. The HDI looks beyond GDP for a better definition
of well being. It provides a composite measure of three dimension of human development:
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(i) Living a long and healthy life (measured by life expectancy),
(ii) Being educated (measured by literacy and gross enrolment in education)
(iii) Having a decent standard, of living (measured by purchasing power parity, PPP, income).

• The index is not a comprehensive measure of human development. It does not include
important indicators such as gender or income inequality nor concepts like respect for human
rights and political freedoms. But it provides a broadened prism for viewing human progress
and the I complex relationship between income and well-being.
How was HDI Formulated?

• The origins of the HDI are to be round in the United Nations Development Programs(UNDP)
Human Development Reports (HDRs).These were devised and launched by Pakistani
Economist Mahbubul in 1990lwith the purpose of shifting the focus of development economics
from national income accounting to people centered policies.
How does India fare in the Human Development Report of 2009,?

• Between 1980 to 2007, India's HDI rose by 1.33% annually from 0.427 to 0.612. HDI scores in
all regions have increased progressively over the years although there have been periods of
slower growth or even reversals.

• The Human Development Report of 2009 pertains to figures 'for 2007. As per this Report, India
ranks 134th out of 182 nations, With an HDI of 0.612. With Life expectancy of 63.4 years we
ranked f28th among 176 nations, with adult Literacy Rate of 66 % we linked 120 among 150s.
Our Combined Gross Enrolment ratio of 61 % placed us at rank 134 among 177 nations and our
per capita lilJp'of2753 placed us at rank 128 among 181 nations.


What is Human Poverty Index?
• Human Poverty Index or HPI-l focuses on the proportion of people below certain threshold
levels in each of the dimensions of the Human Development Index - living a long and healthy
life, having access to education, and a decent standard of living. By looking beyond income
deprivation, the HPI -1 represents a multi-dimensional alternative to the $1.25 a day (PPP US$)
poverty measure.

• The HPI-1 measures severe deprivation in health by the proportion of people who are not
expected to survive to age 40. Education is measured by the adult illiteracy rate. And a decent
standard of living is measured by the un weighted average of people not using an improved
water source and the proportion of children under age 5 who are underweight for their age .

• With an HPI-l value of 28.0% India, ranks 88th among 135 countries for which the index h;s
been calculated.

• With 15.5% people not having the probability to live beyond 40, India ranks 105th among 153
countries, with 11% people not using improved water source India ranked 76th among 150
counties, with Adult Literacy rate of 34% India was at rank 120 among 151 countries and with
46% children underweight for their age we ranked 138 counties.
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What is Gender Related Development Index?
• Introduced in Human Development Report 1995, Gender related Development Index or GDI
measures achievements in the same dimensions using the same indicators as the HDI but
captures inequalities in achievement between women and men. It is simply the HDI adjusted
downward for gender inequality. The greater the gender disparity in basic human development,
the lower is a country's GDI relative to its HDI. India's GDI value, 0.594 should be compared to
its HDI value of 0.612. Its GDI value is 97.1 % of its HDI value. Out of the 155 countries with
both HDI and GDI values, 138 countries have a better ratio than India's.


What are Millennium Development Goals ?
• The Millennium Development Goals or MDGs are eight turnaround goals that provide concrete,
numerical benchmarks for tackling extreme poverty in its many dimensions. Adopted by world
leaders in the year 2000 and set to be achieved by 2015, the MDGs are both global and local,
tailored by each country to suit specific development needs. They provide a framework for the
entire international Community to work together towards a common end - making sure that
human development reaches everyone, everywhere. The eight goals include -
(1) Eradicating extreme poverty and hunger;
(2) Achieving universal primary education;
(3) Promoting gender equality ~a empowering women;
(4} Reducing child mortality;
(5) Improving maternal health;
(6) Combating HIV/AIDS, malaria and other diseases;
(7) Ensuring environmental sustainability;
(8) Developing global partnership for development. These goals further break down into 21
quantifiable targets that are measured by 60indicator.
RAIN WATER HARVESTING


What is rainwater harvesting?
• Rainwater harvesting is the storing and collection of rain water that runs off from tops of roofs,
open spaces like parks and roads or especially prepared ground. This water can be used
variously for purposes like drinking (after treatment), household use, livestock or even
irrigation. It is also used for recharging groundwater, that is replenishing the water that has been
extracted from the aquifers.


Why should rainwater be harvested?
• Much of the water that we receive as rain simply runs off and gets wasted. In a country like ours
where there is so much of pressure on water resources due to growing population pressures, it
makes immense sense for us to store up this water and put it to good use. This water can be a
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useful supplement to the water available from other sources, thereby augmenting the total water
availability. In fact, in some regions, rain is the only source of water available, and that too, in
highly erratic spurts. In such regions harvesting of rainwater is the best option available to
people, and has been known to bring about marked betterment in their living conditions, for
example in many parts of Gujarat and Rajasthan.


• Rainwater harvesting is also very important for recharge of groundwater as there has been
massive over extraction of ground water in many parts of the country. Rainwater harvesting not
only replenishes the store of underground water, it also improves its quality by effecting
dilution of pollutants and other harmful substances.


• Besides these, rainwater harvesting also prevents local flooding in many areas, caused by the
run off water.

How can rainwater be harvested?
• A major point in favor of rainwater harvesting is that the structure for this can be made from
inexpensive, locally available material. It works both in individual households and for small
communities. Rainwater harvesting structures can be made anywhere - individual homes,
apartments, offices, institutions, slums, cities, villages - and ~y anyone - individuals or small
communities.

• Rainwater harvesting structures can be simple or complex. The main components in a rainwater
harvesting system consist of a catchment area from where water is collected - this could be
either from the ground like parks, playgrounds, roads, pavements, agricultural field etc, or from
the rooftops - the channel or conduit through which water passes from the catchment structure
into the storage area - these could be drains, pipes, rectangular or semi circular gutters or
channels made of PVC material, galvanized iron sheets or even bamboo trunks cut vertically
into two and the storage tank or other structures where the water gets collected. The size of
tanks would depend on the amount of water available and the amount needed for use. The tanks
can be made from RCC, plastic, galvanized iron etc. Even dried bore wells, tube wells etc can
be used for collecting water. If rainwater is being harvested for recharge purposes, there need to
be appropriate structures for this, for example subsurface dykes built into an aquifer, recharge of
abandoned wells, service tube wells, recharge pits etc. Besides these the rainwater harvesting
structures also requires arrangements to maintain the quality of water. Thus there have to be
arrangements to ensure that the first flush of rainwater which would contain contaminants, is
allowed to flow out. Filters made of cloth, charcoal, sand etc are put in place to filter out
pollutants.


Is rainwater harvesting a new concept in India?
• No, Indians have been harvesting rainwater since ancient times. Some of the traditional systems
include Tankas which were small underground tanks built in houses in Rajasthan, especially
Bikaner; Khadim or Dhora, which are embankments built along low hills lopes lying under
rocky uplands for collecting water that runs down the slopes and using it for agricultural
purposes later on; Bao/is or stepwells of Gujarat and Rajasthan, TheAhar Pynes of South Bihar-
Ahars are catchment basins embanked from three sides and pynes are channels leading off from
the third side; canals of West Bengal; Tanks, Phads and Bhandaras of of Maharashtra, Keres or
tanks of Kama taka or Zings of Ladakh which were tanks for collecting melted glacier .Most of
these traditional structures are now defunct, but efforts have been initiated by many
communities to revive these.


What rainwater harvesting technique is most popular in urban areas?
• The technique for collecting rainwater from rooftops is most popular in urban areas. Many state
governments have passed laws making rainwater harvesting mandatory for all new buildings/
apartment etc. Some are even giving incentives in the form of rebate on property taxes.


How is rainwater harvesting being done in rural areas?
• The stress in rural areas is on community based water harvesting systems with the revival of
traditional systems. Communities are creating or reviving structures like check dams and johads
to collect water.


A KEY TO BUDGET DOCUMENT
Apart from the Finance Minister's speech, the Budget also comprises some other documents that are
placed before the Parliament. Following is a key to some of these documents, as also to some important
terms used therein.

What are the main Budget Documents placed before the Parliament?
• The main budget documents consist of the Annual Financial Statement, Demand for Grants,
Appropriation Bill, Finance Bill, Macro Economic Framework for the relevant year, Fiscal
Policy Strategy Statement and Medium Term Fiscal Policy Statement. The first four documents
are mandated by the Constitution and the latter three are placed under provisions of the FRBM
Act 2003. Besides these, there are some explanatory documents also like Expenditure Budget,
Receipts Budget, Budget highlights etc


What is the Annual Financial Statement?
• This shows the estimated disbursement and receipts of the government of India for the financial
year in question, in relation to the estimates for the current year and expenditure for the
previous year. The revenue and disbursements are shown under three heads Consolidated Fund (
Includes all revenue received by government, loans raised and recoveries from loans. All
Government expenditure is met from this fund), Contingency Fund (A Rs 500 crore Emergency
Fund for unforeseen expenditure, at the disposal of the President) and Public Account (Money
held by government in Trust, example Provident Fund.). Expenditure from the former two
requires authorization from the Parliament. The Annual Financial Statement also shows
separately, the Revenue Budget (Statement of Revenue receipts from taxes and other revenues,
and expenditure made from these) and Capital Budget (Statement of Capital receipt from
liquidating assets ego selling shares in a public sector company, raising loans from the public,
borrowings from RBI and other parties through sale of treasury bills, and Capital expenditure
made to create assets).


What are Demand for Grants?
• The expenditure estimates for different ministries are placed for voting before the Lok Sabha in
the form of Demand for Grants. There are a total of l05 Demands for Grant in the 20 1 0-11
budget. Each demand gives a total of voted expenditure ( expenditure that requires to be voted
by parliament) and charged expenditure (expenditure that is charged directly to the
Consolidated Fund and does not require to be voted by Lok Sabha eg emoluments of the
President) The document also shows a break up of expenditure under Plan Head (Budget
support to the Central Plan. It also comprises the amount the Centre sets aside for plans of states
and Union Territories.) and Non Plan Heads,( All bills the government has to pay, like interest
payments, subsidies, salaries, defenses and pension) Under each head Revenue and Capital
expenditure are also shown separately.


What are Appropriation Bills?
• Parliament's approval for withdrawal of money from the Consolidated Fund to 11,cet the
expenditure as voted under Demands for Grants, as also expenditure charged on the
Consolidated Fund, is sought through the Appropriation Bill.


What is Finance Bills?
• This Bill places details of the government's proposals for new taxation or change in existing tax
structure, before the Parliament for its approval. It is accompanied by a Memorandum
explaining its provisions.


What is the Macro Economic Framework Statement?
• This statement contains an assessment of the growth prospects of the economy. These include
assessment of GDP growth rate, fiscal balance of the government, and external sector balance
of the economy.


What is the Fiscal Policy Strategy Statement?
• This statement outlines government priority in the fiscal area relating to taxation, expenditure,
lending and investment, administered pricing, borrowing and guarantees. It explains how the
policies are in consonance with sound fiscal management principles.


What is Medium Term Fiscal Policy Statement?
• This statement lays out three year rolling target for four specific fiscal indicators in relation to
GDP at market prices. These are revenue deficit, fiscal deficit, Tax to GDP ratio and total
outstanding debt at the end of the year.
• The above three Statements are placed before the Parliament as per the provisions of Fiscal
Responsibility and Budget Management Act 2003. (FRBM 2003)


What is the FRBM Act?
• A$ per the Fiscal Responsibility and Budget Management Act, revenue deficit was to be
eliminated by 2008-09 , which means that revenue expenditure of the government was to be met
entirely from its revenue receipts. Borrowing was to be done to meet capital expenditure - that
is, repayment of loans, lending and fresh investment. The Act also mandates a 3% limit on the
fiscal deficit after 2008-09


What is Expenditure Budget?
• This document gives the details of revenue and capital disbursement of various ministries and
departments, with estimates for each under Plan and Non Plan. It analyses various kinds of
expenditures. The second volume of this document It also gives statements of the Plan grants
and loans released by the government to state/ district level autonomous bodies under central or
centrally sponsored schemes; gender budgeting and schemes for development of SC-ST


What is Receipt Budget?
• This document contains an analysis of the estimated receipts of the government. It also provides
the arrear of tax and non tax revenue as mandated under FRBM Act. Trends of receipt and
expenditure, deficit indicators, National Small Savings Fund statement, statement of liabilities,
guarantees given by the government, statement of assets and details of external assistance are
also included in this document.



JOURNEY OF THE INDIAN REPUBLIC
The birth of the Indian Republic on the 26th of January 1950 was the culmination of a long drawn
struggle against British domination and the realization of a long cherished dream of sovereignty for its
people. As we celebrate the sixtieth anniversary of the republic, it would be meaningful to look back
and trace the nation's historic journey that led to this moment of glory.


When was the idea of a Republic first conceived?
• While the idea of total independence from British rule as opposed to a Dominion status had
started gaining ground in the late 1920s, the declaration for Poorna Swarajya was first made at
the Lahore session of the Indian National Congress on 31st December 1929, under the
presidency of Pt. Jawahar Lal Nehru. The declaration was officially promulgated on the 26th of
January 1930. Since then the architects of our freedom started observing January 26
"Independence Day". The declaration paved the way for the Civil Disobedience movement and
all that followed, leading to our freedom from Bristish Rule. It was to commemorate this
declaration that 26th of January was chosen as the dayfor oULronstitution to come into force
and for India to become a Republic.


When was the Constituent Assembly framed and how was the Constitution Drafted?
• The Indian Constituent Assembly was constituted as a result of the negotiations between the
Indian leaders and members of the British Cabinet Mission. It had its first meeting on December
9, 1946. The Assembly consisted of 389 members representing provinces (292), states (93), the
Chief Commissioner Provinces (3), and Baluchistan (1). Dr. Sachhidanand Sinha, the oldest
member of the Assembly was elected Provisional President. On December 11, 1946, the
Assembly elected Dr. Rajendra Prasad as its permanent Chairman. The strength of the
Assembly was reduced to 299 (229 representing the provinces and 70 representing the states)
following withdrawal of the Muslim League members after the partition of the country. The
Constituent Assembly set up 13 committees for framing the constitution. On the basis of the
reports of these committees, a draft of the Constitution was prepared by a seven-member
Drafting Committee under the Chairmanship of Dr. B.R. Ambedkar. The draft Constitution was
published in January, 1948, and people were given eight months to discuss the draft and
propose amendments. In all 7635 amendments were tabled out of which 2473 were discussed
and disposed. After the draft was discussed by the people, the press, the provincial assemblies
and the Constituent Assembly in the light of the suggestions received, the same was finally
adopted on November 26, 1949, and was signed by the President of the Assembly. The
members of the Assembly however appended their signatures on two hand written copies of the
constitution, one in Hindi and one in English, on 24 January, 1950. Thus it took the Constituent
Assembly 2 years, 11 months and 18 days to complete the task. During this period the
Assembly had met in sessions open to the public for 166 days.

Who were some of the prominent figures in the Constituent Assembly?
• Jawaharlal Nehru, C. Rajagopalachari, RajendraPrasad, Sardar Vallabhbhai Patel, Maulana Abul
Kalam Azad, Shyama Prasad Mukherjee, Nalini Ranjan Ghosh , Alladi Krishnaswamy Iyer, B.
R. Ambedkar, Benegal Narsing Rau K. M. Munshi ,Ganesh Mavlankar were some well known
members of the Assembly. Sarojini Naidu, Hansa Mehta, Durgabai Deshmukh and Rajkumari
Amrit Kaur were important women members. The first president of the Constituent Assembly
was Sachidanand Sinha later, Rajendra Prasad was elected president of the Constituent
Assembly.


What were the main Objectives of the Constitution?
• The objectives of the Constitution were outlined in the Objective Resolution moved by
Jawaharlal Nehru on December 13, 1946 and unanimously adopted by the Constituent
Assembly on January 22, 1947. The main principles outlined in the resolution were to to
proclaim India as an independent sovereign republic; establish a democratic union with an equal
level of self government for all the constituent parts; provide for all power and authority of the
government to be derived from the people; guarantee and secure to all people of India justice,
social, economic and political; equality of status, of opportunity and before law; freedom of
thought, expression, belief, faith, worship, vocation, association and action.; provide adequate
safeguards for minorities, backward and tribal areas and depressed and other backward classes.;
maintain the integrity of the territory of the Republic and its sovereign rights on land, sea, and
air according to justice . and law of civilized nations; secure for India its rightful and honored
place in the world and contribute to the promotion of world peace and the welfare of mankind.
These objectives are incorporated in the Preamble to the Constitution.

• In drafting the Constitution, what were the ideas that influenced the drafters?

• The framers of the Constitution borrowed the good features of other constitutions like those of
the UK, USA, Canada, Australia, making necessary modifications for its suitability to the
Indian conditions. The parliamentary system of government, rule of law, law-making procedure
and single citizenship were borrowed from the British Constitution. Independence of Judiciary,
Judicial Review, Fundamental Rights, and guidelines for the removal of judges of the Supreme
Court and High Courts were adopted from the US Constitution. The federal system, with a
strong central authority, was adopted from Canada. Directive Principles of State Policy were
borrowed from the Constitution of the Republic of Ireland. The idea of Concurrent List was
borrowed from the Australian Constitution. The provisions relating to emergency were
influenced by the Weimar Constitution. Above all, the Government of India Act, 1935,
exercised great influence on the Indian Constitution. The federal scheme, office of governor,
powers of federal judiciary, etc., were drawn from this Act.
What is the significance of the Preamble to the Constitution?


• The Preamble is brief introductory statement that sets out the guiding purpose and principles of
the document. Despite its importance of the Preamble, initially it was not regarded as part of the
Constitution and hence, was not treated as a source of any substantive powers. In the Berubari
case, the Supreme Court specifically held that the Preamble could not override the express
provisions of the Act. However, in the Keshavananda Bharati case of 1973, the Supreme Court
took the view that the Preamble is part of the Constitution. Chief Justice Sikri observed "the
Preamble of our Constitution is of extreme importance and the Constitution should be read and
interpreted in the light of the grand and noble vision expressed in the Preamble". The court
relied on the Preamble while restricting the amending power of the Parliament under Article
368 of the Constitution. It held that the basic elements of the Preamble cannot be amended
under ArtArtic1e 368. Thus the preamble may be used to interpret ambiguous areas of the
constitution where differing interpretations present Themselves.



NUCLEAR LIABILITY BILL 2010
What is the Nuclear Liability Bill 2010?
India and the United States signed a civil nuclear agreement in October 2008, which allows for
civil nuclear partnership between the two countries on the condition that India would separate
its civil and military facilities and put the civilian facilities under IAEA inspection. One
necessary condition for the implementation of this agreement was to put into place a
compensation regime that would in the event of a nuclear accident. The Nuclear Liability Bill or
the Civil Liability for Nuclear Damage Bill 20 1 0 serves to put that compensation regime into
place. The Bill defines the financial and legal liabilities upon the involved groups,
manufacturers, operators (Operator", in relation to a nuclear installation, means the Central
Government or any authority or corporation established by it or a Government company who
has been granted a licence pursuant to the Atomic Energy Act, 1962 for the operation of that
installation;) and government in case a nuclear accident occurs. It stipulates the compensation
that the operator, the federal government and the private suppliers and contractors would have
to provide to the affected population in case of a nuclear accident.

• The Bill defines nuclear incidents and nuclear damage, nuclear fuel, material and nuclear
installations, and also operators of nuclear installations.. It lays down who will be liable for
nuclear damage, and the financial limit of the liability for a nuclear incident. It creates
authorities who will assess claims and distribute compensation in cases of nuclear damage. It
also specifies who can claim compensation for nuclear damage, and how compensation can be
claimed and distributed. It specifies penalties for not complying with the provisions of the Bill,
or any directions issued under it.


Why is it important?
• In some countries like Russia and France, liabilities of private companies are underwritten by
their governments. But in countries where the government does not underwrite the liabilities of
private companies, a Bill like this would be useful as it can help the private companies get some
insurance cover. Companies would be reluctant to enter the Indian markets unless compensation
structures were not defined.

What are the main features of the Bill?
• The bill defines nuclear damage as (a) loss of life or injury to a person, (b) loss or damage to
property caused by a nuclear incident ( c) economic loss arising out of such damage to person
or property, (d) costs of measures to repair the damage caused to the environment, (e) loss of
income derived from an economic interest in any use or enjoyment of the environment, and (f)
costs of preventive measures.
• The Atomic Energy Regulatory Board has to notify a nuclear incident within 15 days from the
date of a nuclear incident occurring.
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• The operator of a nuclear installation will be liable for nuclear damage caused by a nuclear
incident in that installation or if he is in charge of nuclear material that caused the incident. If
more than one operator is liable for nuclear damage, all operators shall be jointly, and severally
liable to pay compensation for the damage. The Bill also provides certain exceptions to an
operator's liability. The operator has a right of recourse against the supplier and other
individuals responsible for the damage under certain conditions.
• The operator of the nuclear installation, after paying the compensation for nuclear damage in
accordance with the provisions, shall have a right of recourse where-(a) such right is expressly
provided for in a contract in writing; (b) the nuclear incident has resulted as a consequence of
an act of supplier or his employee, which includes supply of equipment or material with patent
or latent defects of sub-standard services; ( c) the nuclear incident has resulted from the act of
commission or omission of an individual done with the intent to cause nuclear damage.


What compensation does the Bill stipulate?
• The Bill states that the total liability for a nuclear incident shall not exceed the rupee equivalent
of 300 million Special Drawing Rights (Approximately Rs 2100 crore at current exchange
rates). Within this amount, the liability of the operator shall be (a) in respect of nuclear reactors
having thermal power equal to or above ten MW, rupees one thousand five hundred crores; (b)
in respect of spent fuel reprocessing plants, rupees three hundred crores; (c) in respect of the
research reactors having thermal power below ten MW, fuel cycle facilities other than spent fuel
reprocessing plants and transportation of nuclear materials rupees one hundred 'Cores. The
Central Government may review the amount of operator's liability from time to time and
specify, by notification, a higher amount under this sub-section: If damage is caused in a
nuclear installation owned by the central government, the government will be solely liable.


How will the system operate?
• The Bill allows the central government to create two authorities by notification:
a. Claims Commissioner: The Claims Commissioner will have certain powers of a civil court.
Once a nuclear incident is notified, the Commissioner will invite applications for claiming
compensation.
b. Nuclear Damage Claims Commission: Where the Central Government, having regard to the
injury or damage caused by a nuclear incident, is of the opinion that it is expedient in public
interest that such claims for be adjudicated by the Commission instead of a Claims Commissioner,
it may establish a Commission for the purpose of this Act. The Commission shall consist of a
Chairperson and a maximum of six members appointed by the government.
• An application for claiming compensation can be made by (a) person sustaining the injury, (b)
owner of the damaged property, (c) legal representative of a deceased person, or (d) an
authorized agent. An application can be made within three years from the date of the person
having knowledge of nuclear damage. The right to claim compensation for nuclear damage will
end if such claim is not made within a period of-(a) ten years, in the case of damage to property;
(b) twenty years, in the case of personal injury to any person, from the date of occurrence of the
incident


What was the debate regarding the Bill ?

The debate was mainly with regard to the amount of financial assistance and legal relief, and to
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clause 17 b in the original draft which provided for proving the "intent" of a supplier of causing
an accident if compensation were to be claimed. Since it is very difficult to prove intent, it
would effectively mean that the manufacturer and supplier would have no legal liability and
very little financial liability in case of an accident, which meant that they would be let off very
easily.
• The Bill was passed by the Lok Sabha after 18 amendments which included rephrasing of
clause 17b to remove the word 'intent'. The financial compensation was also raised.


THE COMMONWEALTH GAMES

What is the history of the Commonwealth Games?
• These Games, formerly known as the British Empire Games, were first held in 1930 in
Hamilton, Ontario, Canada. The name changed to British Empire and Commonwealth Games in
1954, and later to British Commonwealth Games in 1970. Since 1978, they are known as the
Commonwealth Games. The Commonwealth Games are a unique, world class, multi-sport
event held once every four years amongst the member countries and territories of the
Commonwealth. The three core values of the Commonwealth Games movement are Humanity,
Equality and Destiny, which were adopted by the Games movement in 200 I. These values
inspire and unite millions of people and symbolize the broad mandate for holding the Games
within the Commonwealth. The Commonwealth Games Federation (CGF) has 71 member
nations and territories called Commonwealth Games Associations (CGAs) which includes India
What are the major highlights of the XIX Commonwealth Games to be held at Delhi from 3rd to
14th October, 2010?
• The Games will be held in 17 + 1 (Elite Athletes with Disability) disciplines. Around 8000
sports persons will participate. 2000 media persons are likely to attend. Approximately 100,000
visitors are expected for the Games. The entire Games will be covered in High Definition
Television. Television audience of two billion people across world will watch the
Commonwealth Games. New Media Rights such as Pay TV, Internet and telephony will ensure
the widest possible reach. These Games will be Green Games promoting renewable energy
Resources, reduction of carbon emissions and sustainable .development
Which are the sports that will be played in the Delhi Commonwealth Games?
• Competitions will be held in seventeen sports -Aquatics, Archery, Athletics, Badminton,
Boxing, Cycling, Gymnastics, Hockey, Lawn Bowls, Netball, Rugby sevens, Shooting, Squash,
Table Tennis, Tennis, Weightlifting and Wrestling.


What is the significance of Queen's Baton Relay?
• Queen's Baton Relay is a very important tradition of the Commonwealth Games. It started in
1958 in Cardiff, Wales, and has since then been the curtain raiser to every Commonwealth
Game,
• Growing in scale and grandeur over the years and evolving to symbolize the unity and diversity
of the Commonwealth of nations. The relay starts with a ceremony at Buckingham Palace
where Her Majesty Queen Elizabeth II hands over the baton with her message to the players to
the first relay runner. The relay ends at the opening ceremony of the games where the Queen's
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message is read out. Initially the relay would visit only England and the host country, but since
the Kuala Lumpur Games in 1998, the relay has been moving through other member countries
as well. The Melbourne 2006 Queen's Baton Relay was the world's longest, most inclusive
relay. It visited all 71 member countries, traveling a distance of more than 180,000 km in a year
and a day.
• The Queen' sBatonRelay20 1 0 Delhi started from Buckingham Palace on 29 October 2009 and
will end 340 days later at the Opening Ceremony of the XIX Commonwealth Games 2010
Delhi on 3 October 20 I O. During this period the baton will visit the home of one third of the
world's population and cover a distance of more than 190,000 kilometers. This marathon event
will involve traveling for 240 days through the other 70 nations capital cities in India's 28 states
and seven union territories.
• The Queen's Baton 2010 Delhi represents a fusion of handcrafted elements, precision
engineered body, and intricate hand layered soil pattern. The shape and design of the baton is
created using a triangular section of aluminum which has been twisted in the form of a helix
and then coated with a diverse range of colored soils collected from all corners of India.
Culminating at the pinnacle of the Queen's Baton 2010 Delhi is a precious jeweler box
containing the Queen's 'message to the athletes'.ancient Indian 'patras'. Modern laser technology
known as micro calligraphy has been used for the first time to reproduce the Queen's message.
The Baton also has the ability to capture sound and images, can record messages and is fitted
with LED lighting and GPS system.

What do the Delhi Games mascot and emblem signify?
• The logo of the Delhi Commonwealth games is inspired by the chakra, the symbol of freedom,
unity and power. The upward spiral depicts India's growth into a proud and vibrant nation
powered by the coming and Play" is an invitation 1 all to let go of themselves are participate in
the Games to tl best of their abilities, in the tn sprit of the Games. I It is also call to the people
of India to pl2 the perfect hosts to the visitor:
• Shera, the Games masc( represents the modern India He is an achiever with a positive attitude, a
global citizen justifiably proud of his nation ancient heritage, a fierc competitor but with
integrity and honesty. Shera is also a 'large-hearted gentleman who loves making friends an
enthusing people to 'come out and play.


DIRECT TAX CODE 2010
Why do we need a new direct Tax code?
• The Current Income Tax Act in India which was enacted more than 50 years ago in 1961, is not
in tune with the radical transformation that the economy has undergone during this period .A
simple ,stable ,robust and modern tax regime is what the economy needs today. Therefore,
while presenting the Union Budget 2005-06, the Government had announced its intention to
revise, simplify, rationalize and consolidate laws and procedures relating to direct taxes, The
purpose of the code therefore is to consolidate and amend the law relating to all direct taxes,
that is income-tax, dividend distribution tax, fringe benefit tax and wealth-tax, so as to establish
an economically efficient, effective and equitable direct tax system which will facilitate
voluntary compliance and help increase the tax-Gross Domestic Product(GDP) ratio. Another
objective is to reduce the scope for disputes and minimize litigation.


If enacted, when would the DTC 2010 come into force?
• In enacted the Direct Tax code 2010 would come into force from 1st April 2012.

What are the salient features of the code?
• The main features of the Cod are a single code for all direct taxes with unified compliance
procedures, use of simple language, reducing scope for litigation by avoiding ambiguity,
providing flexibility to statute so that it can be modified according to the needs of growing
economy, to ensure better understanding of the laws and provisions, attempt has been made to
simplify the laws and reflect them in the form and consolidate all procedures, the regulatory
function of taxing statute has also been withdrawn.


How is income classified under the DTC 2010?
• Income has been proposed to be classified into two broad groups- Income from Ordinary
Sources and Income from Special Sources. The former refers to income from employment,
from house property, from business, capital gains and income from residuary sources. Income
from Special Sources would include specified income of non residents, wining from lotteries,
horse races, etc.
• Losses arising from Ordinary Sources would be eligible for set off or carry forward and set-off
against income only from ordinary sources without any time limit. Similarly losses from Special
Sources would be set off against income from Special Sources.


What are broad provisions relating to salary income under the code?
• Salary/Emplacement income is proposed to be computed as the gross salary due, paid or
allowed, minus the aggregate of the specified deductions. Exemptions such as house rent
allowance, leave encashment and medical reimbursements have been retained. The exemption
for medical reimbursements would be increased to 50,000 rupees.
• An allowance to meet personal expenses has been introduced Leave travel concession and nonmonetary
perquisites have been done away with. Receipts under the voluntary retirement
Scheme, Gratuity and Commuted Pension deductible from employment income subject to limits
without he condition to make anjy prescribed investments.
• For purposes of Residency, th category of ‘Not Ordinarily Resident’ is proposed to be abolished
and only two categories of taxpayers would remain-viz. residents and non-residents. A citizen of
India or person of Indian origin living outside Indian and visiting India will trigger residency by
staying in India for more than 59 days.


What are the proposed tax rates under the Code?
For Individuals and Hindu Undivided Families
Upto Rs 200,000- NIL; 200,001-500,000- 10%; 500,001-1,000,000-20%; 1,000,001 and above -30%.
Basic exemption for a resident senior citizen (65 years or above), is proposed to be 250,000. I
For co-operation societies
Up to Rs 10,000-10%; R s10,001-20,000-20%; Rs 20,001 and above -30%
Societies other than co-operative societies -30%
For non-profit organizations
Up to Rs 100,000 Nil; Rs 100,001 and above- 15%
For domestic companies -30%
For foreign companies-30% Profits of branches of foreign companies are taxable at 15%
Total Income Tax Rates


• Minimum Alternate Tax (MAT)
• MAT is proposed at 20 % of the adjusted book profits in case of those companies where normal
income-tax payable is less than 20 percent of the adjusted book profits
• MAT credit is available for 15 years .
Wealth tax
• Wealth tax is proposed at 1 % on the value of specified assets held by the taxpayer on the
valuation date (31 March) in excess of the basic exemption of Rs 10,000,000
Dividend Distribution Tax (DDT)
• Domestic Companies are liable to pay DDT at 15 % on dividends. Any dividend to a company
or non-resident in respect of which DDT has been paid, is exempt from income-tax. For the
purposes of computing DDT payable by a domestic company, the amount of dividend received
by a domestic company will be reduced if - such a dividend is received from its subsidiary or if
the subsidiary has paid DDT on such dividend. An equity-oriented mutual fund is liable to pay
income distribution tax of 5 percent. Income received by unit holders from an equity-oriented
mutual fund is exempt from income-tax. The life insurer of an approved equity oriented life
insurance scheme is liable to pay income distribution tax of 5 percent. Deduction is available to
policy holders in respect of income on which such distribution tax has been paid.
Special rates for non-residents
The following incomes in the case of non-resident are proposed to be taxed at special rates:
• Dividend at 20 percent (other than dividends on which DDT has been paid); Interest at 20
percent; Income received in respect of units of a fund at 20 percent (other than income on which
tax on distributed income has been paid); Royalty or fees for technical services at 20 percent;
Income by way of insurance including reinsurance at 20 percent; Income from lottery or
crossword puzzle, race including horse race, games, gambling or betting at 30 percent. Tax on
non-resident sportsmen or sports association on specified income at 10 %.


Capital Gains
• No special rates are provided for capital gains under the DTC. Capital gains tax is to be levied
at normal rates as mentioned above. However, in respect of capital gains arising on transfer of
equity shares or a unit of an equity-oriented fund on which STT has been paid, deduction would
be allowed as follows:
• 100 percent in case aforesaid investment assets are held for more than one year
• 50 percent in case aforesaid investment assets are held for one year or less.


UNIQUE IDENTIFICATION PROJECT

What is the objective of the Unique Identification Project?
• Establishing one's identity is a major problem that people face in India. As on date , there is no
single document that can be used for identifying a person and people are forced to carry
multiple documents to be used for different purposes. Thus every time you wish to avail of a
service like opening a bank account, obtaining· a passport, mobile connection etc you are forced
through a rigmarole of providing different sets of identity documents. Further, the present sets
of identity documents being used today do not provide migrants with a mobility of identity, nor
do they include the poor and marginalized people.

• The UID project aims to provide each person in the country with a unique identification number
which will become a single source of verifying his identity. This would not. Involve issue of
any identity card. The basic identity of a person will be linked to his biometrics and stored in
the UID database. Whenever there is a need to establish the identity of the person, the same can
be provided through his DID through an online authentication process.
Will it be compulsory to get a UID number?
• It will not be compulsory to get a UID number, but certainly most beneficial. Any person who is
a temporary or ordinary resident of India is eligible for, and should get a UID number as this
would spare them the hassle of repeatedly providing supporting identity documents each time
they wish to access some service. The UID will also facilitate entry for poor and
underprivileged residents into the formal banking system, and the opportunity to avail services
provided by the government and the private sector and also gives migrants mobility of identity.
How will the UID database be created?
• Creation of the UID database will involve a network of institutions at largely three levels. At the
point of first public interface there will be Enrolling Agencies who will enroll people into the
UID database. These Enrolling Agencies will be monitored by a network of Registrars which
would include government and private sector agencies who already have the infrastructure for
public interface for eg banks, insurance agencies, LPG distribution companies, NREGS etc.
Outreach Groups working among women, children, underprivileged persons etc will also be
engaged. At the central level there will be a Central Identity Data Repository which will
manage the central data and the network of Registrars.


How will a UID number be issued?
• A resident will first have to apply before an Enrolling Agency and submit the required form,
with information asked for, documents, photograph and biometric elements like all ten
fingerprints, both iris scans. This information will be sent through. the Registrar to the UID
central database. There it will go through a process of de-duplication. This means that if he will
be issued a DID number only if his details are not already in the database. If his details are
already there in the database, his application will be rejected. De-duplication makes his UID
number really unique and also serves to prevent frauds. In case wrong information is fed into
the data base or n person wants to change some information about himself, this will have to be
done in accordance with the laid down procedure. The policy will also take into considt':ration
disabled persons and the biometric standards prescribed will ensure that these groups are not
excluded. In the case of people without hands/ fingers only photo will be used for identity
determination and there will be markers to determine uniqueness. Children will be required to
get their biometric information updated every five years till they are 18 when their biometrics
stabilize.


How will authentication be done?
• The process would provide for an online authentication of the biometrics of the person. A one to
one online match will be run between the biometrics of the person and his biometrics as present
in the UID database. The reply to an authentication process will be given in a "Yes" or "No".
How will inclusion of the underprivileged be ensured under the project?
• Inclusion of the underprivileged is one of the major objectives of the UID project, as it is these
persons who find it most difficult to prove their identities and are forced to forego benefits and
subsidies. To ensure that every such needy person gets a UlD number the project will work
through its network of registrars who already have a presence at local levels and have the
infrastructure for public interface. In addition the project would be involving outreach agencies
like civil society working among women, children and underprivileged sections of the society.
How secure would the database be?
• The UID database will be guarded both physically and electronically by a few select individuals
with high clearance. It will not be available even for many members of the UID staff and will
be secured with the best encryption, and in a highly. secure data vault. All access details will be
properly logged.

What is the institutional set up under which this project is being implemented?
• The government has constituted a Unique Identification Authority of India as an attached office
under the Planning Commission. The Authority is headed by Shri Nandan Nilekani, its first
Chairman. The Authority will develop and implement the legal, technical and institutional
infrastructure for the project.

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