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Review: Orissa HC Notes That The High Court Can Acquit a Convict Even in Absence of Appeal to Prevent Continuity of Manifest Injustice.
Sai Krishna Muthyanolla
May 17, 2023
In this week’s review of Court Judgments, we look at Delhi High Court dismissal of plea for retrospective action of Senior Citizens Act, Supreme Court’s relief to a company whose accounts were frozen due to an unrelated case, Madras Court decision making Paytm liable for an fraudulent transaction, Bombay High Court’s observation regarding adjustment of amnesty amount against dues without notice and Orissa High Court’s initiative to acquit an accused even though he has not filed for an appeal.
Delhi HC: Dismissed a plea regarding retrospective application of Senior Citizens Act that renders property transfer as void in certain situations.
A division bench of Delhi High Court consisting of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad dismissed a plea seeking the retrospective effect of Section 23 of the Maintenance and Welfare of Parents and Senior Citizens Act, 2007, which specifies certain circumstances in which transfer of property by an elderly person will be void.
In the case, Chiranjeet Singh Ahluwalia vs. Union of India, a plea was moved by Chiranjeet Singh Ahluwalia challenging the validity of the provision by contending that its application is restricted to the gifts of property made by a senior citizen after the commencement of the legislation and not before, which came into force in 2008.
Section 23 of the Senior Citizens Act states that:
It was the case of the petitioner that the words ‘after the commencement of the Act’ must be taken away or struck down from section 23 and it should be given retrospective effect. The submission further states that the senior citizens who have gifted their properties to their children or others, are not being maintained and thus, the Act must read in a manner to permit the senior citizens to revoke gifts made by them prior to the commencement of the Act.
The Delhi High Court referred to an earlier case in Kerala High Court, Human Rights and Social Welfare Forum Represented through its Chairman Dr. Vijeesh C Thilak vs. Union of India, wherein it was noted that the vested rights of the donor are not to be given a retrospective operation even though the objective of the act is to provide for measures for welfare of senior citizens.
Delhi High Court dismissed the plea and said that the legislature did not intend that Section 23 be read retrospectively and that it does not find the case fit for exercising the writ jurisdiction under Article 226 of the Constitution of India.
Supreme Court: Company’s bank account can’t be frozen for criminal investigation against unrelated party.
In the case, M/s. Jermyn Capital LLC Dubai vs. Central Bureau of Investigation & Ors, Supreme Court set aside a freeze order and subsequent bank guarantee imposed on a foreign institutional investor company, as the freeze action was taken on the basis of a criminal case pending against a person who had no connection with the company.
The freeze order was an extension to the freeze order in relation to the investigation of allegations against one of the accused persons in the 2001 Stockbroker Scam.
M/s. Jermyn Capital LLC Dubai is a Foreign Institutional Investor and was permitted by SEBI to buy and sell shares and securities in the Indian Stock Exchange. Due to certain litigations, it stopped trading in the Indian market in 2006. However, there were shares and money in its ICICI Bank account.
A freeze order under 102 CrPC was imposed on the company in October 2006 and was followed by another in 2010. The orders were on the grounds of the necessity of investigation of an alleged crime. The first freeze order allowed the company to sell its shares, convert them to cash and repatriate them. However, the second freeze order incapacitated the company to repatriate the money to the account (Rs. 38.5 crores).
The company moved to the Supreme Court, which granted it the liberty to approach a trial court to release the amount. The trial court has permitted the repatriation of the said amount, but it was on the basis of a Bank guarantee of an equivalent amount.
The company approached the Gujarat High Court, which also agreed with the trial court and the imposition of the Bank guarantee.
Looking into the details of the case, the Supreme Court noted that the Trial court and the High Court have solely imposed the Bank Guarantee based on the ongoing criminal proceedings against Dharmesh Doshi. However, the Supreme Court found that there was no relation between the appellant company and Dharmesh Dosi. Furthermore, the company was neither named as an accuser in the FIR nor was it charge-sheeted. The court set aside the condition imposed upon the appellant to furnish a bank guarantee by the Courts below and allowed permitted to withdraw the amount along with 4% simple interest, which shall be payable from 08 May 2006 till the date of actual payment.
Madras HC: Holds Paytm liable for unauthorised debit from customers account.
Madras High Court held Paytm liable for fraudulent unauthorised transactions on the Paytm account of a Postgraduate medical student.
As per the case details, Dr. R Pavithra has lost around 3 lakh rupees from her account due to unauthorised transactions on Paytm. She approached the court after the City Union Bank failed to reverse the loss suffered by her and instead allegedly attempted to shift the blame on her.
The court heard in detail the submission of the City Union Bank, Paytm and the Reserve Bank of India, and held that the payments bank i.e., Paytm was liable for the transactions and not the petitioner’s bank.
It noted that while the customers are encouraged to use payment applications, they do not get redressal in case of fraudulent transactions and the institutions keep on shifting the blame. Although as per the circular dealing with Customer liability in case of Unauthorised Electronic Payment Transactions through Paypointz Wallet, the customer needs to report within 7 days, the court noted that the customer has in this case promptly reported to the bank. It noted that there was no way customers who have known how the fraud was committed.
It noted that Paytm has failed to establish the liability of the customer within 90 days as required by RBI circulars and hence, must pay the amount irrespective of whether the negligence was on the part of the customer.
Bombay HC: Department adjusting the refund amount under amnesty scheme without notice violates principles of natural justice.
In the case, TML Business Services Ltd vs. The Deputy Commissioner of State Tax, the Bombay High Court has held that the action of the department in adjusting a refund due to the petitioner from an Amnesty scheme, without prior notice is a disregard to the well-established principles of natural justice.
In this case, the petitioner is a limited company engaged in procuring vehicles from Tata Motors Limited. The petitioner was earlier known as TML Distribution Limited. As per an order passed by NCLT, all assets of TML distribution ltd were transferred to TML Business Services Ltd.
The petitioner was registered under MVAT Act, 2002 and CST Act, 1956. The assessing officer raised an Assessment Order to the extent of Rs. 17.76 crores including tax & interest. After an appeal was filed by the petitioner, this was reduced to Rs. 14.1 crores.
In March 2019, the Government of Maharashtra introduced an amnesty scheme providing for the settlement of arrears of tax, interest, penalty, late fee, etc upon payment of a part. An application was made by the petitioner under this Amnesty scheme for settlement of dues and paid Rs. 8.46 crores.
A refund order was received stating that Rs. 10.69 crores due to them would be adjusted towards the amount of tax for the next assessment year. The contention of the petitioner was that it was not open to the respondents i.e., Deputy Commissioner of State Tax, to adjust the refund amount against the liability. This action has denied the petitioner the refund amount.
The court noted that the defect notice and the refund notice only had one day gap, and this would not provide for the petitioner to have sufficient opportunity to seek redressal from the department.
Orissa HC: High Court can acquit a convict even in absence of appeal to prevent continuity of manifest injustice.
A Division Bench of Orissa High Court consisting of Justice Debabrata Dash and Justice Sanjeeb Kumar Panigraphi held that even if a person, who was convicted by the trial court, does not prefer to appeal against his conviction, the High Court can still invoke its power under Section 482 & 401 of Code of Criminal Procedure to acquit him of charges which cannot be sustained based on available evidence.
In this case, the appellant Shiva @ Gurucharan Singh faced trial with another accused Duna Singh and two others – Beta and Dasmat Marndi. He along with Duna Singh was convicted for the commission of offence under Sections 302/34 and 120(B) of IPC while the other two were acquitted.
Being aggrieved by the sentence, Shiva filed an instant appeal before the High Court while Duna Singh did not prefer to file any. The bench noted that the finding of the Trial court that the prosecution has established the charges beyond reasonable is not sustainable and hence, the judgment of conviction and order of sentence is liable to be set aside.
However, now the question before the bench is about one of those convicted who has not filed an appeal while the co-accused who has appealed is cleared of the charges as the prosecution failed to establish its case beyond a reasonable doubt.
The court relied on earlier cases Parbati Devi vs. The State, Harinath vs. State of UP, and also on Nirmal Pasi and Anr vs. State of Bihar. Based on these earlier judgments, it concluded that the judgment of conviction and order of sentence passed by the trial court against another accused, Duna, to be set aside even though he has not appealed.


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Review: Other forms of Agricultural Marketing & Contract Farming in India
Sai Krishna Muthyanolla
December 9, 2020
One major feature of the recently passed farm bills is flexibility it provides the farmer to enter into agreements before the crop season. This is more akin to contract farming. But what are the other forms of agricultural marketing in India and how has contract farming fared in India so far? Here is a review.
During 2017-18, the central government released the model APMC (Agricultural Produce Marketing Committee) and contract farming Acts to allow and promote restriction-free trade of agricultural produce, competition through multiple marketing channels, and farming under pre-agreed contracts. The Standing Committee (2018-19) noted that many states carried out partial reforms only, on a pick-and-choose basis.
To this end, the central government promulgated three Ordinances on June 5, 2020: (i) the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020, (ii) the Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020, and (iii) the Essential Commodities (Amendment) Ordinance, 2020. The three Ordinances together aim to increase opportunities for farmers to enter long term sale contracts, increase availability of buyers, and permits buyers to purchase farm produce in bulk. These were later passed by the Parliament & received the President’s assent in September 2020.
In previous articles, we have detailed the role of APMCs, the restrictions and limitations imposed by APMC laws as outlined by various committee reports, and the highlights of the three ordinances promulgated on 05 June 2020 along with the history of reforms to agriculture marketing.
In this article, we look at the contract farming scenario in the country and briefly go through the studies that have analysed the performance of various contract farming systems across the country.
What is Contract Farming?
It is defined as a system for the production and supply of agricultural, horticultural or allied produce by primary producers under advance contracts. Essentially, such arrangements include a commitment to provide a commodity of a type/quality, at a specified time, place, and price, and in specified quantity to a known buyer.
Contract Farming (CF) in India
Contract Farming is known by different variants like (i) centralised model which is company- farmer arrangement, (ii)  out grower scheme which is run by government/public sector/joint venture, (iii) nucleus-out grower scheme involving both captive farming and CF by the contracting agency, (iv) multi-partite arrangement involving agencies other than the grower and the buyer, (v) intermediary model where middlemen are involved between the company and the farmer, and satellite farming referring to any of the above models. It varies depending on the nature and type of contracting agency, technology, nature of crop/produce, and the local and national context.
According to the Doubling Farmers’ Income (DFI) Committee Report, contract farming can address many traditional ills, such as lack of market connectivity, long chain of market intermediaries, ignorance about the buyer demands, etc. According to the report, this allows farmers to vertically integrate with specific and organised market channels. Contracts from bulk consumers can serve to offer regular and consolidated demand to farmers and an assured exchange against predetermined quality and quantity.
As per the DFI committee report submitted in August 2017, a snapshot of contract farming across different states is given below.
Contract farming is frequently extended to non-crop activities also. Poultry farmers for both eggs and broilers function under large enterprises in many States of the country particularly Tamil Nadu, Kerala, Karnataka and Andhra Pradesh.
What are the other alternative marketing systems?
The DFI Committee emphasises that though contract farming is not a sole solution for problems in agricultural marketing, it can very well be leveraged in certain regions and for specific crops for increasing farmers’ income. Contract farming is one of the many alternative marketing systems, such as:
(i) Direct marketing: where farmers directly transact with the produce consumers. These operates in two basic formats (i) Farmers’ Markets, and (ii) Direct sourcing from farmer’s field by processors (primary consumers). In these markets, no market fee is charged but service charges are collected from sellers. About 488 such farmers’ markets are operating in different States in the name of Apnamandis in Punjab, Haryana, Rythu bazaars in Andhra Pradesh and Telangana, Uzhavar Sandhai in Tamil Nadu, Shetkari Bazaars in Maharashtra and Raitha Santhe in Karnataka. As per a study on these bazaars, it is revealed that the producer’s share in the consumer’s rupee and marketing efficiency was more in case of Rythu bazars (Farmers’ market AP & Telangana) when compared to organised retail outlets and the least was in case of hawkers and petty vegetable enterprises.
The other variant of direct marketing is by way of direct sourcing of the produce from farmgate by the processors, exporters, retail chain players, etc. Though recommended in the Model APMC Act & Rules, very few of States have issued such licenses for direct sourcing.
(iii)Private Wholesale Markets: According to the DFI Committee, 21 States/UTs have made enabling provisions for setting up of such markets and only 11 States have notified the rules thereunder to implement the provision.
(iv)Organised Retailing: The example of SAFAL (the fruit & vegetable marketing subsidiary of Mother Dairy) is mentioned as an example of indigenously organised retailing network. SAFAL operates in Delhi out of approximately 400 retail outlets and sells about 350 tonnes of fresh produce daily in Delhi-NCR markets. The growth in scale of private operators in food retail sector is also visible. Many Indian companies have organised the supply chain locally, from farm sources, for their own retailing requirements.
(v)Farmer producer organisations (FPOs): The aggregation of farmer into FPOs (cooperatives/SHGs/FIGs/Producer company), aid their integration into the supply chain, and in taking up roles traditionally by market intermediaries. Organising producers into formal management practices help to initiate collective decisions on cultivation to make the best use of market intelligence, offset fragmentation in land holding, and bring benefits of economies of scale.
(vi)Cooperatives in agricultural marketing: Cooperatives have achieved limited success over the years except those in the States like Maharashtra and Gujarat. Notable examples are in the dairy sector (GCMMF-AMUL) and in grapes (MAHAGRAPES) where collective operation has resulted in the reduction of transaction costs and improved the bargaining power of smallholders’ vis-à-vis foreign traders.
(vii)Food & agro-processing: The industry plays a vital role in employment generation and provides an assured demand to farmers, against predetermined quality parameters. The industry has specific requirements on crop types, food safety aspects and practices at farms and faces major constraints primarily due to the inadequate extension and linkage between production and processing.
Performance of Contract Farming in India
Most studies of the Contract Farming (CF) systems in India examine the economics of the CF system in specific crops, compared with that of the non-contract situation and/or competing traditional crops of a given region, e.g. in gherkins (hybrid cucumber) in Tamil Nadu and Andhra Pradesh, tomato in Punjab and Haryana and cotton in Tamil Nadu.
Contracting agencies especially private, tend to prefer large farmers for CF because of their capacity to produce and supply better quality crops as they use efficient and business-oriented farming methods and possess various services like transport, storage, etc. They also supply large volumes of produce which reduces the cost of collection for the firm. Besides, they have capacity to bear risk in case of crop failure. On the other hand, small farmers are picked up by firms for contracts only when the area is dominated by them.
Only in Karnataka, Tamil Nadu, and Andhra Pradesh, firms worked with small and marginal farmers due the nature of the crops (cucumber/gherkin, and broiler chicken) involved.
The factors which result in CF excluding small producers are: enforcement of contracts, high transaction costs, quality standards, business attitudes and ethics like non/delayed/reduced payment and high rate of product rejection, and weak bargaining power of the small growers. On the other hand, the organizers of CF find it costly to work with them due to their scattered location and smaller volumes.
Contracting agencies often impose eligibility conditions for contract production like certain land size, irrigated land, literacy level of the farmer, no non-contract crop production in the neighbouring fields, and certification which are discriminatory in terms of who can be a contract grower. In fact, several studies have shown that in CF, private agribusiness firms have less interest and ability to deal with small farmers on an individual basis and tend to prefer larger farmers for CF which leads to lower cost procurement for the firm.
In an article published in National Institute of Agricultural Economics and Policy Research in 2009, Sukhwinder Singh summarised various studies conducted across the country. It was found that contract production gave higher gross and net returns compared with that from the traditional crops. This was due to higher yield and assured price under contracts. But, in Punjab, except oilseed crops (hyola and sunflower), the net returns from contract crops were found to be lower than what farmers would have got from the wheat crop. However, production cost was also higher. But, in the case of cotton in Tamil Nadu, the contract growers had lower input cost, lower interest loans, faster payment for produce than in non-contract situation, and the crop insurance facility.
The studies in the states of Punjab and Haryana also reveal that contract growers faced many problems like undue quality cut on produce by firms, delayed deliveries at the factory, delayed payments, low price and pest attack on the contract crop which raised the cost of production. The contracts protected company interest at all costs to the farmer and did not cover farmer’s production risk e.g. crop failure, retained the right of the company to change price, and generally offered prices which are based on open market prices. This is a serious issue as even a significant premium over market price may not help a farmer if market prices go down significantly which is not uncommon in India.
The author emphasises that even though sustainability in CF is desirable to ensure its beneficial effects on growers and local economy, CF is only an instrument/means to agricultural development, not an end in itself. CF can wither away as a commodity market becomes efficient because it is only a response to a situation of market failure and depends on commodity/crop/sector dynamics which are liable to change, especially in a globalized and liberalized world.
In the same tone, the Doubling Farmers’ Income (DFI) Committee Report, provides a host of recommendations. Alongside provisions that increase opportunities for farmers to enter long term sale contracts, the committee strongly recommends focus on Gramin Agriculture Markets (GrAMs) scheme – to facilitate a new market architecture comprising organically linked village retail agricultural markets, alternative primary wholesale markets and export markets. Emphasis is also put on Pradhan Mantri Kisan Sampada Yojana under Ministry of Food processing Industries to complements the ongoing infrastructure support programs of the Ministry of Agriculture & Farmers’ Welfare, under Mission for Integrated Development for Horticulture.
Featured Image: Contract Farming in India

source: news-factly

created: December 9, 2020

license: Creative Commons - Attribution - https://creativecommons.org/licenses/by/4.0/

author: Sai Krishna Muthyanolla


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Parliamentary committee asks the government to pursue the change the code of Gaya airport
Sai Krishna Muthyanolla
March 4, 2022
Parliamentary Committee on Public Undertakings recently submitted a report on ‘Airports Authority of India’, in which it evaluated the physical and financial performance of AAI, operational and organizational matters, and the implementation of the UDAN scheme, among other issues. The committee also asked the government to pursue the change of the code of Gaya airport which is currently ‘GAY’ with the IATA.
The Airports Authority of India (AAI) is a statutory authority under the Ministry of Civil Aviation (MoCA), which is responsible for the integrated development, construction, expansion, maintenance and modernisation of air traffic services, passenger terminals, and cargo services in the country. Its responsibilities also include the provision of communication, navigation and surveillance, provision of passenger facilities and related amenities at its terminals thereby ensuring safe and secure operations of aircraft, passengers, and cargo in the country. A total of 137 airports including 24 International airports (3 Civil Enclaves), 10 Custom Airports (4 Civil Enclaves) and 103 Domestic airports (23 Civil Enclaves) are being managed by the AAI. It provides air navigation services over 2.8 million square nautical miles of air space.
Action taken report on Airports Authority of India was tabled recently
In January 2021, the Parliamentary Committee on Public Undertakings (2020-21) submitted a report on the ‘Airports Authority of India’. In the report, the committee evaluated the physical and financial performance of AAI, operational and organizational matters, and the implementation of the UDAN scheme, among other issues. A total of 43 forty-three observations/recommendations were listed by the committee of which 35 of them were accepted by the government while the committee does not desire to pursue 5 in view of the government’s response, and 3 for which the committee did not accept the response of the government. These details are available in the committee’s Action Taken Report on AAI that was tabled recently.
Among many recommendations, the committee had suggested that AAI convert itself into a Company under the Company’s Act, 2013 as it had fulfilled the eligibility criteria for becoming a ‘Navratna’ status company that would help in increasing transparency, accountability and enhanced functional & financial autonomy. In 2019, AAI became a Miniratna Category – I Central Public Sector Enterprise (CPSE) which gave the board of AAI the Financial Powers to invest capital expenditure up to Rs. 500 crores without Government approval. For Navratna CPSEs, this investment is permitted up to Rs.1000 crores.
However, for the re-incorporation of AAI as the company would result in fundamental changes in corporate structure, functioning and governance of AAI, the consultants noted adding that either prior amendment of the AAI Act by the Parliament or fresh legislation would be required to deal with the conflicts arising out the incorporation. The opinion of the Department of Legal Affairs is awaited in this matter.
The establishment of trans-shipment hubs across all major airports recommended
Since there was a 56.3% increase in cargo during the period from 2013-14 to 2018-19 and even higher numbers were projected for 2023-24 & 2028-29 period, the Committee had recommended that new trans-shipment hubs and Special Economic Zones at airports be set up to reduce the turnaround time of aircraft and costs at Indian airports. However, as there was no definite response on the issue of establishment of trans-shipment hub at Mumbai and Kolkata, the committee recommended vigorous pursuing of the establishment of trans-shipment hub at Delhi, Mumbai, Chennai, and Kolkata within a definite timeframe while also re-emphasizing on conducting studies to know the feasibility of establishing similar hubs at other major airports in the country.
With respect to passenger services, the Committee had recommended that facilities for reducing check-in time for passengers, assistance to Persons with Disabilities (PWDs), senior citizens and VIPs, help desks, and other services like DISHA to improve the customer experience be provided at all airports in a stipulated time frame to enhance the passengers’ flying experience. However, the Ministry had not indicated any time frame or deadline by which these facilities/amenities would be available to the passengers at various airports in the country. Even with respect to the recommendation calling for proper signages for passengers as well as cab drivers to reduce waiting time, and maintenance of a database of local taxi drivers, the committee pulled up the Ministry for not taking concrete actions.
Measures to reduce bird strike incidents and single-use plastics in airports recommended
The committee had suggested the Government frame an aviation-grade biofuel policy to promote cultivation and commercial exploitation of Sustainable Aviation Fuel. The Ministry stated that the Ministry of Petroleum & Natural Gas had constituted a Committee for the Bio-ATF programme under the Chairmanship of Director (R&D), Indian Oil Corporation Ltd. The Ministry of Civil Aviation (MoCA) is a member of this Committee and there is a collaboration with the Ministry of Road Transport for scaling up the production of biofuel in the country. Though the committee appreciated this, it also added that the government inform them of the progress and impact of such initiatives. Further, in 2019, AAI had declared 85 airports as ‘Single-Use Plastic Free Terminals’ which has been recommended to be expanded to the remaining airports. The committee also highlighted the issue of bird strike incidents that harm passengers and aircrafts and recommended that a study be taken up immediately to identify best practices globally to minimize such incidents.
The Aircraft Accident Investigation Bureau (AAIB)’s duty is to investigate serious aircraft accidents and make recommendations based on findings of investigations whereas the role of the Directorate General of Civil Aviation (DGCA) is the overall management and supervision of the entire gamut of activities like registration, licensing and surveillance of aerodrome, airplanes, operators, flight training, crew and other equipment and regulations. The Committee expressed concern over the independence of the two authorities functioning under the administrative control of the MoCA and asked the Ministry yet again to explain how the independence of these agencies is ensured in their functioning.
India is lagging in 2 out of 8 critical elements of ICAO
Globally, India is one of the major civil aviation markets after China and the US. The International Civil Aviation Organization (ICAO) has mandated 8 critical elements (CE) which are mainly safety defence tools that are required for the effective implementation of safety-related policies. The CEs are Legislation, Organization, Licensing, Operations, Airworthiness, Accident Investigation, Air Navigation Services, and Aerodromes. The committee analysed the data furnished and noted that AAI has not been able to keep pace with world average standards in the effective implementation of these two CEs- Organization and Licensing. The committee felt that the Ministry had elaborated only the reasons behind the poor performance with respect to ‘Licensing’ only while it was silent on ‘Organization’. It asked the government to ensure that the performance is on par with the best in the global level.
Noting the reason behind the delay in landing allegedly due to preferential treatment given to private airlines’ flights over the then government-owned airlines- Air India & Air India Express, the Ministry furnished data on preferential treatment related to some airports. The committee noted that there were more complaints from Air India. The Ministry stated that the mechanism of Collaborative Decision Making (CDM) is robust and allows AAI, the Air Traffic Service Provider and Airline Operations to interact regularly and mutually sort out such issues and develop mutual trust and the committee called for looking into these complaints and ensure fair treatment.
Slow progress in implementation of RCS-UDAN
Under the Regional Connectivity Scheme (RCS) – UDAN, about 100 airports, heliports, waterdromes were identified for revival/development and be made operational by 2024. Of them, 19 were scheduled to be operationalized by 2019-20 and 25 airports to be operationalized by 2020-21. However, as per Ministry’s reply, 35 airports were to be developed by 2020-21 out of which 32 have been completed and 20 of these airports are in operation. Out of 44 targeted airports to be developed, only 20 could be made fully operational by the Government- a shortfall of more than 50% of the target. The committee called for speeding up the work for timely completion of projects to achieve the targets on time.
AAI had conducted only one audit inspection in the past 7 years. The revenue share of AAI from Delhi International Airport saw a decline while that from Mumbai increased. The committee asked AAI to take suo moto action on the declining revenue share trends from Delhi and recommended regular audit inspection to be conducted by AAI.
AACs should be constituted in all airports
The committee also noted that Airport Advisory Committee (AAC) was not constituted in 17 airports. In those airports with AAC, 46 of them did not hold any meetings while some airports had held only one meeting in the last 3 years while the norm was to hold at least one meeting every 6 months. The Ministry’s response to the committee in this matter was that Airport Directors were asked to do so and did not mention the actual status. Noting this, the committee asked for action taken status report of each airport regarding the installation of display boards with details of Airport Director, the opening of exclusive AAI help desk for MPs, development of an app for the use of MP, courtesy treatment at the airports, etc. The committee also recommended constituting AACs at Joint Venture airports.
With respect to budget allocation for the Research and Development of airports, the committee noted that there was no proper data because of which it could not draw any conclusions and asked for an elaborate response from the Ministry.
Government should try to change the code name of Gaya Airport
The committee recommended changing the code name of Gaya Airport in Bihar. The code name for the airport was ‘GAY’ which the committee felt was inappropriate, unsuitable, offensive, or embarrassing for the holy city. The government stated that the matter was raised with the International Air Transport Association (IATA), which said that the location codes are considered permanent and a strong justification primarily considering air safety was required to change any code. The government further stated that Gaya airport IATA code “GAY” has been in use since the operationalization of Gaya airstrip and hence, without a justifiable reason primarily concerning air safety, IATA has expressed its inability to change the IATA code of Gaya airport. The committee re-emphasized the Government to take up the matter with IATA and the concerned organization.


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Parliamentary Standing Committee highlights delays & under-utilization of funds in setting up of new AIIMS
Sai Krishna Muthyanolla
January 18, 2022
The department-related parliamentary standing committee of the ‘Ministry of Health & Family Welfare’ recently submitted a report on the ‘Review of Progress of all AIIMS’ in the Lok Sabha. Among other things, the committee highlighted delays, under-utilization of funds, shortage of faculty in the new AIIMS.
During the Winter Session of the Parliament, the department-related parliamentary standing committee of the ‘Ministry of Health & Family Welfare’ submitted a report on ‘Review of Progress of all AIIMS’ in the Lok Sabha. The committee, chaired by Lok Sabha MP Girish Bhalchandra Bapat, looked at multiple issues such as the progress in construction and operation of 22 AIIMS in the country, how these are different from AIIMS (New Delhi), reasons for the delay in setting up these AIIMS, streamlining the process of setting up of new AIIMS, budgetary allocations, recruitment process, and encouraging research activities. Furthermore, the committee made a slew of recommendations on various issues.
22 AIIMS have been approved under PMSSY since 2003
Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was announced in 2003 for expanding tertiary healthcare facilities across the country by setting up of new All India Institute of Medical Sciences (AIIMS) and up-gradation of existing Government Medical Colleges (GMCs) in various States. Under the scheme, a total of 22 new AIIMS have been approved, of which six AIIMS at Bhopal, Bhubaneswar, Jodhpur, Patna, Raipur, and Rishikesh are fully operational. These six AIIMS were approved in Phase I of the scheme. The remaining 16 AIIMS are at different stages of construction. According to the  PMSSY dashboard, the construction is in progress for 10 AIIMS, while the appointment of executing agency is ongoing for 2 AIIMS. While MBBS classes have commenced in three new AIIMS, MBBS classes and OPD services have begun in another four of them. The remaining six are at the initial stages, according to the dashboard.
Years of delay in completion of new AIIMS
The committee noted that the delay in the completion of new AIIMS ranges from 2 to 12 years. The expected date of completion of the 16 AIIMS as per the Ministry’s response to the parliamentary committee clearly shows that there is a delay in the progress of all these AIIMS. The period of delay is as high as 1 year 7 months for AIIMS (Rae Bareli) as of December 2021 when the report was published. The AIIMS (Mangalgiri) and AIIMS (Kalyani) are staring at a delay of more than one year, as per the report. Among those AIIMS in the initial stages of construction, the encumbrance-free land is yet to be handed over by the State Government in the case of AIIMS (Manethi) that was approved by the Cabinet in February 2019. The Cabinet approved date of completion is February 2023 for this AIIMS.
The reasons behind delays as cited in the report include delay in the approval of the scheme, delay by the State Government in providing the encumbrance free land for AIIMS (Dharbanga & Manethi), non-availability of sand for construction work AIIMS (Mangalgiri), delay in completion of activities to be undertaken by the State Government such as the arrangement of water supply, stormwater disposal drain, the main approach road to campus and shifting of existing NDRF Campus and COVID -19 pandemic, and delay in filling up of vacancies and other administrative reasons.
Fund allocation for setting up AIIMS is not as per the AIIMS Act
With respect to the funds for setting up AIIMS, the allocation is made for all the projects together under the PMSSY Division. This allocation is a combined allocation and not institute-wise. This is despite the provision in AIIMS Act to make an allocation to every institute in each financial year.
Unlike others, AIIMS (Madurai) would be set up with a loan from an international agency (Japan International Cooperative Agency – JICA). First, the amount will be spent from the combined allocation following which the reimbursement would be claimed from the agency (JICA).
Underutilization of funds observed across different AIIMS
The committee further noted a gap between projected requirements and allocations at the budget estimates (BE) stage between 2016-17 and 2021-22. In 2016-17, the projected requirement was Rs.4,362.1 crores while the BE was Rs. 2,450 crores. In the same year, the revised estimates (RE) were Rs.1,953.24 crores while the expenditure was Rs.1,953.15 crores. Except in 2018-19 and 2019-20, the allocation at the RE stage was less than at the BE stage. During the year 2021-22 against the proposed allocation of Rs. 8,965.14 crores, the allocation at BE stage is Rs.7,000 crores. The expenditure was Rs. 3,903.41 crores till 22 October 2021.
The Committee also observed that the expenditure is less than the effective release for various AIIMS. For instance, between 2018-19 to 2021-22, AIIMS (Bhopal) incurred an expenditure of Rs. 980.83 crores while the effective release was Rs. 1357.07 crores, giving a percentage expenditure of 72.3%. Likewise, the percentage expenditure for AIIMS (Bhubaneshwar) was 88.3%, 59.9% for AIIMS (Mangalgiri), 32.4% for AIIMS (Kalyani), and 27.8% for AIIMS (Guwahati).
All new AIIMS should be treated on par with AIIMS (New Delhi)
The committee noted that there should not be any difference between AIIMS (New Delhi) & other AIIMS, with respect to the delegation of financial and administrative powers for procurement of equipment, having specialties & super specialties teaching, since all the new AIIMS are being governed by the AIIMS Act, 1956 as amended in the year 2012. All AIIMS must be treated on par with AIIMS (New Delhi).
While AIIMS (New Delhi) is headed by a Director (with an age limit of 65 years), the new 16 AIIMS are being headed by an Executive Director (with an age limit of 70 years). The committee called for strict adherence to the AIIMS Act for the appointment of the Director as head in each new AIIMS instead of the Executive Director. It is also recommended against the appointment of any person above 65 years of age as the head.
AIIMS like institutes must be set up in all states
Furthermore, the committee noted the underutilization of scarce budgetary resources, unavailability of required beds and specialists and super specialists, and the slow progress in opening centres in various AIIMS and asked the Ministry to take measures to achieve physical and financial targets, as well as ensure the availability of sanctioned beds, specialties, and super specialties. The committee also recommended that the Ministry take necessary steps to set up AIIMS like institutes in all states in a time-bound manner and include it in the 15th Finance Commission Report.
Timelines need to be fixed to ensure effective monitoring of progress
The Committee expressed that timelines were required for each action point in the guidelines for setting up of new AIIMS so that the progress can be monitored effectively. The committee advised the Ministry to fix timelines and take efforts to ensure that these are followed.
Even in the past, committees have recommended that the process of effective operationalization of all the essential medical services and tertiary level health care facilities at new AIIMS should be completed within the stipulated timeframe. The recent report recommended the constitution of a project review panel for each AIIMS to evaluate both the physical targets of construction of buildings as well as setting up of medical facilities. The panel is supposed to review every quarter and report laxities to the Ministry.
Further, to address the delay caused by the State Governments such as getting land clearance, the committee recommended that the Ministry should bring it to the notice of the concerned Member of Parliament (MP) for taking up the matter with the respective State Government. Observing that most AIIMS are in the outskirts of the main cities, the Committee highlighted the issue of road connectivity and urged the Ministry to actively monitor road conditions to meet four-lane connectivity at each AIIMS project.
Issue of Human Resources also highlighted in the report
Noting that only 43% to 72% of the faculty posts have been filled up in the six new functional AIIMS, the committee asked the Ministry to take up urgent measures to fill up the vacancies in time so that medical education and services do not suffer due to shortage of faculty posts. A policy for appointment of regular and contractual posts with clear-cut bifurcation, keeping contractual appointment minimum, has been recommended by the committee.
Further, it also asked the ministry to explore the possibility of enlarging the ambit of ‘visiting faculty’ at each new AIIMS till the time regular posts are filled up. The committee has also asked the Ministry to study the feasibility of having rotation/transfer of faculties from one AIIMS to another, to ensure that the quality of education and services in all the new AIIMS are at par with AIIMS (New Delhi). It also asked the Ministry to come up with a mechanism to ensure a uniform syllabus for the MBBS courses in all AIIMS, uniform rules and regulations for completing the course, conducting examination and a robust evaluation process. The committee also advised the ministry to issue guidelines to all AIIMS to put in place a comprehensive module for online medical education at AIIMS, like the SARAL platform of AIIMS (New Delhi).
Separate allocation for research recommended
For planning the future requirements of each AIIMS, the committee called for earmarking an assured fund to each AIIMS in each financial year, as per the AIIMS Act. It also added that the additional allocations as per requirement for each AIIMS be taken up with the Ministry of Finance at the highest level and that the Ministry must ensure full utilization of allocation. The committee also recommended a separate allocation for research activities.
Featured Image: Parliamentary Standing Committee on new AIIMS

created: January 18, 2022


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Parliamentary Standing Committee highlights financial constraints in India achieving its 2030 ‘Clean Energy’ targets
Sai Krishna Muthyanolla
March 1, 2022
India made noteworthy progress in the generation of renewable & non-fossil fuel energy in the last few years. As of 31 December 2021, the government announced that India has achieved its NDC’s target as committed at COP21. However, as highlighted by the parliamentary standing committee recently, financial constraints remain a challenge in India achieving ‘Clean Energy’ targets set for 2030.
India had made a pledge that 40% of the country’s installed electricity generation capacity shall be from clean energy sources by the year 2030. As of 31 December 2021, the Government of India announced that India has achieved its NDC’s (Nationally Determined Contribution) target with a total non-fossil-based installed energy capacity of 157.32 Giga Watts (GW) which is 40% of the total installed electricity capacity as committed at COP21.
In 2015, India had decided that by 2022, 175 GW of renewable energy capacity would be installed in the country, including 100 GW from solar energy, 60 GW from wind energy, 10 GW from biomass, and the remaining 5 GW from small hydropower. Later, in 2019, Prime Minister Narendra Modi stated that India’s renewable energy capacity would be increased to much beyond 175 GW and eventually to 450 GW. In the recently concluded COP26, he announced that the government is committed to achieving 500 GW of installed electricity capacity from non-fossil fuel sources by the year 2030.
Recently, the parliamentary standing committee on energy, which looks at the Ministry of New and Renewable Energy (MNRE) tabled a report on the ‘Financial Constraints in Renewable Energy Sector‘ in which the committee has put forth a list of recommendations for the government to explore innovative ways to deal with the issue of financial constraints in the sector.
India is on track to achieve the 2022 targets
As of 31 January 2022, with about 11 months left to achieve the target of 175 GW renewable energy capacity by 2022, 105.42 GW has been achieved. That is, about 60% of the target has been achieved. However, going by the segment-wise targets, the target of 10 GW set for bioenergy has been achieved while almost 97% of the target of 5 GW for small hydropower has been achieved. In the case of wind energy, only two-thirds of the 60 GW has been achieved while just about 50% has been achieved in the case of solar energy.
Significant progress in the renewable energy sector over the last few years
According to Invest India, the country’s investment promotion agency, India was ranked 3rd in the renewable energy country attractive index in 2021. The country’s installed renewable energy capacity stood at more than 151.4 GW (including large Hydro), accounting for 39% of the country’s total capacity, as of 31 December 2021. Furthermore, the increase in installed solar energy capacity has been by 17 times in the last 7 years and reached 50 GW. Overall, India’s installed renewable energy capacity, including large hydro, has increased from 76.4 GW in March 2014 to 151.4 GW in December 2021, recording an increase of around 98%. As noted earlier, India has achieved its Nationally Determined Contributions (NDC) target of 40% electricity generation through clean energy sources by 2022.
Financial constraints for the sector have been highlighted by MNRE
While the progress in the last few years has been noteworthy, the country has set ambitious targets for renewable energy installation to be achieved by 2022, and by 2030 which have a very large financing requirement, as stated by the MNRE during the committee meetings. To meet the long-term commitments, India would need an annual investment of Rs. 1.5 to 2 lakh crores. Despite this, the estimated investments for the last few years have been in the range of only Rs. 75,000 crores, thereby leaving a large gap between the required and actual investments. To achieve the target of 450 GW installed capacity by 2030, the Ministry has envisaged a total additional investment of Rs. 17,00,000 crore including transmission cost based on certain assumptions.
The committee noted that filling this huge gap between required and actual investment will be a gargantuan task. Noting the large overall debt requirement and the need to reduce the cost of financing to the renewable energy developers, the committee recommended the ministry to explore the following:
USD 8407 million FDI inflow into the sector in 10 years
Between 2010-11 and 2019-20, the Ministry stated that there was a total FDI equity inflow of USD 8,407.38 million in the non-conventional energy sector. 100% FDI under automatic route has been permitted in the renewable energy sector. This is one of the measures taken by the Government to boost investments in the sector along with other measures such as rolling out fiscal incentives like accelerated depreciation, GST at lower rates, concessional custom duty, etc., Payment Security Mechanism for SECI bided projects, setting up of Dispute Resolution Committee to deal with disputes between solar/wind power developers and SECI/NTPC beyond the contractual agreement, setting up of Renewable Energy Industry Promotion & Facilitation Board, Ultra Mega Renewable Energy Parks to provide land and transmission on plug and play basis, Green Energy Corridor Scheme, etc.
IREDA should be given a special window for borrowing from RBI at the repo rate
The Indian Renewable Energy Development Agency (IREDA) is the only dedicated public sector financial institution for financing renewable energy projects in India. As of 31 March 2021, IREDA had financed 2800 renewable energy projects with cumulative loan sanctions of Rs. 96,250 crores and disbursement of Rs. 63,158 crores supporting green power capacity addition of more than 16,165 MW. The committee noted that as per RBI’s guidelines, IREDA had to maintain a minimum capital-to-risk weighted assets ratio (CRAR) of 15%. But, its CRAR had dropped from 23.1% in 2014-15 to 14.3% in 2019-20 limiting the window for borrowings. There was a slight improvement to 17.1% in 2020-21. Additionally, IREDA has planned to come up with an IPO for enabling more financing. Noting the pivotal role of IREDA, the committee suggested that IREDA should be given a special window for borrowing from RBI at a repo rate in line with other specialized financial institutions like NHB, SIDBI, and NABARD, to ensure the availability of low-cost financial resources for the sector.
The committee asked the Ministry to explore the possibility of exempting PFC Ltd, REC Ltd, and IREDA from payment of guarantee fees for raising funds from international multilateral agencies like KfW, JICA and ADB. Alternatively, it suggested a guarantee fee at a concessional rate like in the case of the National Bank for Financing Infrastructure and Development (NABARD).
The committee asked banks to restructure loans such that EMI is higher in the peak season of revenue generation and lower in the off-season to ward off the risk of renewable energy projects from becoming NPAs. Further, it recommended that the ministry actively engages with the state governments to avoid any unilateral cancellation/renegotiation of power purchase agreements (PPAs) as it causes uncertainty and negatively affects the investment in the renewable energy sector.
Ministry has been asked to pursue DISCOMS and states to clear dues
To avoid delay in disposal of tariff adoption applications by the electricity regulatory commissions, the committee suggested that amendments be made in the Electricity Act to fix a maximum period for according approvals/disposing of petitions by the State Electricity Regulatory Commissions. Furthermore, it called for proper implementation of the Electricity (Late Payment Surcharge) Rules, 2021 so that the developers get compensated for delays caused by Distribution Companies (DISCOMs) in payment of dues.
It also called for providing payment security instruments in every PPA signed by renewable energy developers with DISCOMs. The Ministry was asked to pursue states and DISCOMs to clear dues on a ‘first in – first out’ basis so that the oldest dues are paid first. The Ministry was also asked to pursue the matter of banks’ reluctance to lend with the local banks and ensure the availability of funds for the installation of renewable power capacity under schemes like rooftop solar and KUSUM. Furthermore, it called for increasing the limit of loans in the sector.
The government is promoting PLI Scheme to reduce dependence on China for solar PV Modules
Through the Production Linked Incentive (PLI) Schemes, the government aims to incentivize foreign investors to set up manufacturing units in India and push local manufacturers to expand their units which would also boost employment. In the renewable energy sector, the Cabinet in 2021 approved a PLI ‘National Programme on High-Efficiency Solar PV Modules’, with an outlay of Rs. 4,500 crores to promote manufacturing of high-efficiency solar PV modules in India and in turn reduce import dependence in the Renewable Energy sector. An additional allocation of Rs. 19,500 crores were announced by the Finance Ministry in the 2022-23 Budget to achieve the targets of 280 GW of installed solar capacity and increase the non-fossil energy capacity to 500 GW by the year 2030.
Featured Image: Clean Energy targets


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Review: Parliamentary Standing Committee Lauds Significant Growth in Digital Payments while Highlighting Important Concerns
Sai Krishna Muthyanolla
February 27, 2024
Acknowledging the fintech sector’s critical importance and the escalating concerns surrounding cybersecurity, the Parliamentary Standing Committee on Communications and Information Technology tabled a report during the Budget session of 2024. It lauded the significant growth in digital payments while highlighting important concerns including fraud, recovery process, dominance of foreign companies, etc.
Launched in 2015, the Digital India Programme aimed to usher in a digitally empowered society. Notably, government initiatives to encourage a shift to a less cash economy resulted in substantial growth in digital payments over the years. There has been a notable surge in both value and volume of digital transactions between 2017-18 and 2022-23. Projections for the future anticipate a threefold increase in digital payments by 2025, primarily propelled by factors such as widespread smartphone usage, evolving consumer behaviours influenced by the COVID-19 pandemic, and governmental strategies focused on financial inclusion.
Report on digital payment and online security measures was tabled in the parliament
Acknowledging the sector’s critical importance and the escalating concerns surrounding cybersecurity, the Parliamentary Standing Committee on Communications and Information Technology tabled a report on “Digital payment and online security measures for data protection” during the Budget session of 2024. Inputs from various governmental entities and financial institutions such as the Ministry of Electronics and Information Technology, Ministry of Finance, Ministry of Communications, Indian Cybercrime Coordination Centre, Reserve Bank of India (RBI), National Payments Corporation of India (NPCI), etc. were considered when preparing the report. The committee has expressed its concern over the Fintech sector in India.
Dominance of foreign owned Fintech Companies highlighted
The Committee’s report highlighted the dominance of foreign-owned fintech companies, including Walmart-backed PhonePe and Alphabet’s Google Pay, in the Indian fintech sector. In terms of volume, the market share of these key players; Google Pay and PhonePe stood at 36.39% and 46.91%, respectively, during October-November 2023. On the other hand, the Indigenous BHIM UPI held a mere 0.22% market share by volume during the same period indicating a low adoption of Indian fintech apps or lower preference for the same.
With the growing volume of digital payments in India, the utilization of fintech apps for financial transactions is expected to rise. In light of this, the Committee suggested that a concerted effort to promote and prioritize local Indian players within the fintech sector is required. Further, the Committee also noted that regulatory control over Indian fintech apps would be more practical for regulatory bodies like RBI and NPCI, compared to managing foreign entities with diverse jurisdictions.
Fintech apps are used for money laundering
The Committee was also alerted to the use of fintech companies for money laundering. An example is the Pyypl app integrated with the MasterCard payment system, which enables global transactions, posing challenges for tracking funds. Based in Abu Dhabi, Pyypl faced fines for anti-money laundering non-compliance. This according to the committee highlights the pressing need for more robust regulation of fintech companies to ensure compliance with anti-money laundering legislation.
Fraudulent transactions have increased but low in share of total volume
Despite a notable increase in transaction volume over the past five years, the ratio of fraudulent transactions to total transactions has maintained a consistently low level. The fraud-to-sales ratio, indicating the proportion of fraudulent transactions to the total, has been around 0.0015%. As of September 2023, in the current financial year, there was a slight uptick to 0.0016%. Specifically, the percentage of UPI users affected by fraud stood at 0.0189%. Despite concerns regarding the potential misuse of fintech platforms for illegal activities, the overall impact on users has remained relatively low compared to the substantial total volume of transactions.
The different types of cybercrimes as reported to the National Cybercrime Reporting Portal between 2021 and 2023 are as given below.
Recovery rate of defrauded money is low and is time-consuming process
Further, the committee emphasized the need for enhanced efforts to recover defrauded money. Notably, the recovery percentage in cyber fraud cases is alarmingly low. It also acknowledged the complexity of procedures for filing complaints and retrieving lost funds in cyber fraud cases. It urged the Ministry to streamline the process for the return of amounts frozen or held in lien observing a high turnaround time to close complaints. It also suggested a multistakeholder approach to combat scamsters considering the diverse nature of cyber threats, ranging from infrastructure hacking to social engineering tactics, requiring coordinated efforts from multiple agencies.
RBI has issued draft guidelines
The Committee noted that the RBI has issued guidelines to ensure the safety of the digital banking system, extending its oversight to online fintech companies. Fraudulent transactions have been addressed through the draft Master Directions on Cyber Resilience and Digital Payment Security Controls for Payment System Operators (PSOs). The proposed directions include the appointment of 24/7 nodal officers to promptly resolve unauthorized transactions and cooperate with Law Enforcement Agencies. The committee called for finalizing the draft guidelines and ensuring compliance with the same.
Interfaces may be used to spread awareness on cyber fraud
To prevent cyber fraud, the committee noted that the interfaces of these apps are essential for raising awareness. These interfaces can educate users about safe transaction methods and alert them to deceptive practices used by fraudsters. It recommended MeitY to come up with guidelines for banks/fintech companies/apps/platforms to focus mainly on generating awareness in the form of creative, pop-ups, etc. among the general public at the interface of apps promoted by them.
The Committee noted that punishing cybercriminals hasn’t been very effective, expressing worry about low conviction rates referring to the National Crime Record Bureau’s data. The Committee emphasized the crucial need for statutory changes in cybercrime laws, stating that penalties should deter criminals.
India is among the largest Fintech economies in the world
India is recognized as the world’s third-largest FinTech economy thanks to several factors that function as pivotal facilitators, positioning India as a focal point for the expansion of FinTech. Local fintech players offer cultural understanding, regulatory alignment, community engagement, and adaptability. NPCI has been promoting the same through initiatives like Startup India. Recently, as per reports, food delivery platform Zomato launched its UPI. Likewise, CRED and Groww also launched their own UPIs.
On the other hand, foreign fintech players bring global expertise, diverse solutions, and investment inflow, and foster healthy competition. A balance between local and foreign fintech players is essential for a comprehensive financial ecosystem. It ensures tailored solutions for local needs, incorporates global best practices, attracts international investments, and promotes innovation, ultimately leading to a more robust and inclusive financial landscape.
NPCI proposed a market cap restriction for TPAPs in 2020
In 2020, NPCI came up with a proposal to introduce a 30% market cap restriction for third-party app providers (TPAPs). The Standard Operating Procedures involve notifying the TPAP upon reaching a 25% market share, issuing another warning at the 27% threshold, and ultimately prohibiting the onboarding of new customers once the 30% market cap is exceeded. The proposal was made with a deadline of two years. However, the deadline was further extended by two more years to December 2024, “taking into account the present usage and future potential of UPI, and other relevant factors”, as per the circular.

created: February 27, 2024


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Review: Parliamentary Standing Committee makes multiple recommendations including pragmatic budgetary allocation for MNREGA - FACTLY
Sai Krishna Muthyanolla
February 21, 2022
The Parliamentary Standing committee on Rural Development and Panchayati Raj recently submitted its evaluation report of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Among other things, the committee highlighted the need to make pragmatic budgetary allocation for the scheme, ensure seamless flow of funds throughout the year, inclusion of multiple other works under the scheme.
The Mahatma Gandhi National Rural Employment Guarantee Act, 2005, also popularly known as MGNREGA, is a social security scheme implemented by the Ministry of Rural Development together with state governments. The legislation guarantees 100 days of wage employment in a financial year, to adult members in a rural household who are willing to do unskilled manual work at a fixed minimum wage. The objectives of the scheme include:
After about 16 years of the implementation of the act, a parliamentary standing committee on rural development and Panchayati Raj recently tabled the report, ‘Critical Evaluation of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)’ in the Lok Sabha. In the report, the Committee assessed and highlighted the shortcomings in the implementation of the flagship scheme and made a slew of recommendations to be incorporated to improve the outcomes of the scheme.
Despite increase in demand, government budget allocation continues to be low for MGNREGA
Analysing the budget estimates (BE), revised estimates (RE), and actual funds released for the scheme since its inception, the committee noted that there was an increase in demand for the scheme drawing out of the constantly rising budgetary demand. However, since 2015-16, there was a substantial hike at the RE stage, which further elevated the budgetary allocation of the scheme. For instance, in 2018-19, the BE was Rs. 55,000 crores were increased to Rs. 61,830 crores at the RE stage. Similarly, in 2019-20, the BE was 60,000 crores which were revised to Rs. 71,002 crores during the RE. In 2020-21, the RE was Rs. 1,11,500 crores, up from Rs. 61,500 crores at the BE stage. For 2021-22, as of 01 September 2021, only six months into 2021-22, Rs. 52,228.84 crore of the allocated BE of Rs. 73,000 crores were already spent.
In 2020-21, the demand for work under MGNREGA had witnessed an unprecedented surge following the reverse migration due to the pandemic. A total of 389.1 crore person days were generated and 7.55 crore households (11.19 crore individuals) availed of the scheme in 2020-21. Making note of the lower allocation for the scheme despite a rise in demand, the committee stated that the budgetary allocation of such an enormous scheme should be done in a more pragmatic manner taking into consideration the expenditure of previous years. The committee also said that ‘agreed to labour budget’ must be available at the concerned level so that there is no dearth of funds in mid-year and flow of funds for payment of wages, material share, etc. is maintained seamlessly. However, in the Union Budget for 2022-23, the Government has retained the allocation at Rs. 73,000 crores despite the previous year’s revised estimates being 25% higher at Rs. 98,000 crores.
Centre was asked to work with State Governments to ensure provisions of the Act are adhered to
The Department of Rural Development cited the non-completion of requisite procedural formalities by the State governments in the stipulated time, such as non-updation of muster rolls, delay in submission of documents for releasing wages, material share by the States along-with delay in the release of states’ share of 25% material costs, as some of the hindrances for the seamless flow of funds. Calling out the Department for highlighting only the State governments’ issues, the committee stated that instead of pointing fingers at each other, the governments should work together for the upliftment of the quality of lives of the rural population. The Department was also asked to take measures to force the state governments to stick to the statutory provisions to ensure that the beneficiaries are not kept waiting.
Allocated funds should be utilized in time-bound manner
The unspent balance during 2018-19 was Rs. 2,599 crores which increased to Rs. 5,271 crores in 2020-21. As of 5 November 2021, the unspent funds stood at Rs. 1,351 crores. Citing this, the committee noted “improvement” in the reduction of unspent funds by the Department. The committee recommended that “this downward trend in the accrual of unspent balances need to be maintained through rational measures and asked the Department of Rural Development to ensure that the unspent balances are completely mitigated by the utilization of allocated funds in a time-bound and financially prudent manner”.
As of 05 November 2021, the wage liability was Rs. 2,763.78 crores including Rs. 339.2 crores for SCs and Rs. 330.54 crores for STs. Stating its disappointment over the ‘state of affairs’ of the scheme, the committee stated that there was no reason for justifying this pendency and asked the Department to wipe off the liabilities as soon as possible.
Allowance for unemployment, compensation for delay in wage payment are not being paid
The committee also noted that despite legal provision which entitles wage seekers for compensation for delay in receiving wages, only about Rs.11.78 crores was paid as compensation between 2018-19 and 2020-21. This could be because the amount of delay in payment of wages is low or that the provision of delay compensation is not being implemented strictly on the ground level. It noted that the provision of the act for delay compensation was not being complied within most parts of the country and called for immediate action to ensure compliance.
The Act also provides for an unemployment allowance to those applicants who are not provided employment within 15 days. Despite the legal mandate, only Rs. 12,000 in 2019-20, and Rs. 3,000 in 2020-21 was paid under this head. Though it pulled up the state governments for not abiding by the provisions of law, it also held the nodal agency (Department of Rural Development) responsible for this and called for the implementation of the mandate in true ‘letter and spirit’ on the ground level.
Wages should be made uniform across the country and linked with inflationary index
To keep up with the rise of inflation having an effect on the price rise of even essential commodities, the committee suggested linking wages under the scheme to a commensurate inflationary index. The nominal wage under the scheme would not be sufficient otherwise, and so the rural masses will be forced to migrate to urban areas for better remuneration, against the objective of the scheme. It noted that the wage rates across most states were between Rs. 200 to Rs. 300 in 2021-22. The daily wage ranged from Rs. 193 in Chhattisgarh and Madhya Pradesh and Rs. 198 in Bihar and Jharkhand to Rs. 318 in 3 Gram Panchayats of Sikkim and Rs. 315 in Haryana. Noting the disparity of wages across states, the committee also asked the Department to fix a single unified wage rate at the beginning of every financial year.
Guaranteed workdays should be increased to 150 from 100
The Committee also strongly recommended an increase in the number of guaranteed days of work per household from 100 to 150 and further diversifying the nature of works under MGNREGA to meet 150 days of work. It stated that it was high time that the scheme is revamped, especially considering the changing times and emerging challenges arising out of the pandemic situation. However, as per the data provided in the report, the average days of employment provided per household ranged between only 48 to 52 days between 2018-19 and 2020-21.
Inclusion of agricultural works and agricultural labourers under the permissible domain of MGNREGA such as sowing, fencing, cutting of weeds, etc. was recommended by the committee. Rejuvenation of traditional water bodies, plantation of cash crops on the roadside and government lands, and lining of ponds with plastic to deal with water scarcity were suggested by the committee to be taken up under MGNREGA.
The Act provides 40% of the funds for material components, skilled and semi-skilled labour, and the remaining 60% for wages of unskilled labourers. Nonetheless, since the inception of the scheme, the nature of work and practices under the scheme has changed substantially with time because of the intervention of technology and called for the revision of the 60:40 wage-material ratio.
Other measures suggested by the committee
Apart from these, the committee also made the following recommendations.

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Review: Parliamentary Standing Committee Makes Recommendations to Better Use India’s Soft Power - FACTLY
Sai Krishna Muthyanolla
December 29, 2022
Apart from economic and military power, the concept of soft power has gained traction in the last few decades globally. The Parliamentary standing committee on External Affairs has not noted that despite India having such a wide array of resources of soft power, MEA has not been able to project them efficiently to achieve the foreign policy goals. Here is a review of its recommendations.
Apart from economic and military power, the concept of soft power has gained traction in the last few decades globally. Indian culture, yoga, spiritualism, festivals, music, dance & arts, food, etc. have been attracting people from across the world for centuries. ‘The Parliamentary Standing Committee on External Affairs’ tabled its 16  report, titled ‘India’s Soft Power and Cultural Diplomacy: Prospects & Limitations’ in the Parliament during the winter session of 2022. In the report, the committee made a slew of recommendations on how India can better project this soft power in conjunction with the conventional & cultural diplomacy.
India has a wide array of resources of soft power
Soft power is the ability to influence others through appeal and attraction, using non-coercive means, according to the Ministry of External Affairs (MEA). Use of soft power and cultural diplomacy constitutes an integral part of MEA’s overall strategy for achieving the key objectives of Government’s foreign policy and thus play an integral part of MEA’s overall strategy. India’s vast repertoire of soft power resources include its cultural heritage evident in arts, dances, literature, cuisine, yoga, traditional medicine, cinema and entertainment, sports, historical monuments, India’s democratic traditions, constitution, unity in diversity and contributions in resolving contemporary environmental issues, scientific/technological accomplishments, and socio-economic innovations.
As per the report, despite India having such a wide array of resources of soft power, MEA has not been able to project them efficiently to achieve the foreign policy goals mainly because of four reasons; inadequate budgetary allocation, lack of coordination among multiple institutions, shortage of skilled manpower, and absence of national policy. The panel recommended that MEA must assess India’s soft power potential and come up with strategies to utilize them. Further, a policy document on India’s soft power projections was also recommended. The committee called for constituting a coordination committee consisting of representatives from the ministries of external affairs, culture, youth and sports affairs, AYUSH and science and technology to overcome the lack of coordination among multiple institutions in projecting India’s soft power.
Namaste became a popular form of greeting during COVID-19
During the pandemic, India’s traditional greeting form of ‘Namaste’ had acquired greater recognition as a global form of greeting as it required no contact between people. It noted that MEA and the Ministry of Culture embraced digital and virtual mode to carry forward India’s soft power and cultural diplomacy during the pandemic and asked the Ministry to adopt innovative ICT technologies to make India’s soft power and cultural diplomacy more effective and relevant in the post-covid world.
Best international practices on leveraging soft power instruments should be studied
MEA was also recommended to study international best practices on how countries are leveraging their soft power instruments. It noted that the soft power organization of China, UK, Japan, USA, Russia, and France focused on language promotion, leadership programme, cultural activities, and promotion of art forms. Indian Council for Culture Relations (ICCR) does most of these activities in India.
The committee observed that there is an urgent need for a complete overhaul of the structure, mandate and functioning of the ICCR so that it can project Indian culture in a comprehensive, cohesive, transparent, and inclusive manner. ICCR was asked to adopt a suitable motto and have a well-defined vision and mission statement.
India’s spending on soft power promotion is low compared to China, UK, and Germany
The amount spent by China on its Confucius Institutes and soft power promotion is estimated to be about Rs. 10,000 crores a year whereas ICCR and other agencies put together spend around Rs. 300-400 crores. Most of India’s expenditure goes into establishment and administration. In 2021-22, the British Council received 179 million pounds as grant-in-aid. Including this, their total income was 1034.5 million pounds. Goethe Institute’s budget was also about 370 million Euros. Noting this, the committee suggested an increase in ICCR’s budgetary allocation by at least 20% for better outcomes. Enhanced annual budgetary allocation of Rs. 500 crores for ICCR to conduct India’s soft power and cultural diplomacy was also recommended.
ICCR should explore financial models
The committee opined that ICCR has scope for improvement and expansion of the activities and suggested including language promotion and art forms in its activities. ICCR was asked to explore other financial models like public private partnership to supplement the grants-in-aid received from MEA. Improved human resource policy, appointment of genuinely interested persons, mechanism to share human resources to the fullest in cultural centres was also recommended.
India has tremendous scope to leverage the democratic credential as soft power tool
India is the world’s largest democracy. The country’s parliamentary democracy with a multi-party-political system and orderly change of government through periodic peaceful elections has global appeal. Promotion of democracy as India’s strength is being undertaken by MEA along with Parliament Secretariat and Election Commission. ICCR’s ‘Next Generation Democracy Network Programme’ helps young leaders witness India’s democratic system. The committee observed that India has tremendous scope to leverage the democratic credential as a soft power tool.
Separate division is being established for reviving monuments with Indian influence abroad
The Archaeological Survey of India (ASI) and MEA have restored historical monuments with Indian influence in other Asian countries including Laos, Cambodia, Afghanistan, among others. A new and separate division to handle projects abroad is being established by MEA with ASI and Ministry of Culture. This move was appreciated by the committee and asked the ministry to inform the progress of the same.
Tourism sector should be boosted as it is an important indicator of soft power
India’s rich culture and heritage make it one of the most interesting destinations in the world to visit and tourism is an indicator of a country’s soft power. Initiatives such as the ‘Incredible India’ campaign, participation in tourism fairs/exhibitions/expos/road shows, signing of Agreements/MoUs with countries, identifying wellness and medical tourism areas, etc. are being rolled out by India to boost tourism. The tourism sector was one of the severely hit by the pandemic. The committee suggested that the government adopt country-specific approach for promotional activities and come up with proposals incorporating feedback from all types of travellers for the same.
The entry fee to historical monuments is different for Indian and foreign travellers. Though it is a major source of revenue, the different pricing is unnecessary in the globalized world. The committee recommended revisiting the pricing system while suggesting common tourist passes for entry to different heritage sites like in European countries. Infrastructure and public transportation should also be ensured in tourist areas. A multi-pronged approach to capitalize on India’s potential as a hub for religious and medical tourism by building requisite infrastructure and skilled expertise was recommended.
Promotion of AYUSH & Yoga abroad has been recommended to boost India’s exports
The committee recommended that MEA should facilitate the opening of more AYUSH centres overseas in a strategic and planned manner. Further, it noted that India exports AYUSH and herbal products to about 100 countries and that a majority of these exports are value-added extracts of medicinal plants, dietary supplements, and nutraceuticals, and recommended the government make concerted efforts to get recognition of Ayurveda as a system of medicine and adopting pharmacopeia of India so that they can be exported as medicine.
Concerted effort is being made by the government to popularize yoga through promoting International Yoga Day and setting up of facilities such as the Indo-Turkmenistan Centre for Yoga and Traditional Medicine in Ashgabat and India-China Yoga College at China’s Yunnan Minzu University, etc. The panel suggested setting up a ‘Yoga Certification Board’ for certifying Indian yogic practices and therapies. The committee recommended involvement of Indian diaspora in not only popularizing Yoga but also for boosting India’s cultural diplomacy.
Measures recommended for media and cinema as tools of soft power
The popularization of Indian personalities and historical events on a regular basis with the active involvement of Indian Missions/Posts abroad, revamping the focus, structure and functioning of Doordarshan India for its global outreach, and popularizing Indian movies and regional cinema abroad were some other recommendations put forth by the committee.

created: December 29, 2022


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Parliamentary Standing Committee notes gaps in implementation of schemes for Persons with Disabilities
Sai Krishna Muthyanolla
September 6, 2021
The Parliamentary Standing Committee on Social Justice and Empowerment recently assessed the implementation of ‘Scheme for Implementation of the Rights of Persons with Disabilities Act, 2016 (SIPDA)’. In its report, the committee noted multiple issues with allocation, lack of proposals, spending among other things.
The Preamble to the Convention on the Rights of Persons with Disabilities (CRPD) 2006, adopted by the United Nations, emphasizes that “Persons with disabilities include those who have long term physical, mental, intellectual or sensory impairments which in interaction with various barriers may hinder their full and effective participation in society on an equal basis with others.” The expressions reflect a shift from a medical model to a social model of disability.
In the medical model, the disability lies in the individual as it is equated with restrictions of activity with the burden of adjusting to the environment through cures, treatment, and rehabilitation. On the other hand, the social model focuses on the society which imposes undue restrictions on the behaviour of persons with an impairment. In this, disability does not lie in individuals, but in the interaction between individuals and society. It advocates that persons with disabilities are right holders and are entitled to strive for the removal of institutional, physical, informational, and attitudinal barriers in society. The World Report on Disability by World Health Organisation (WHO) and World Bank emphasise that while both models are often presented as dichotomous, a balanced approach is needed, giving appropriate weight to the different aspects of disability.
In the above spirit, the Rights of Persons with Disabilities (RPWD) Act, 2016 was passed by the Indian Parliament to fulfil its obligation to the United Nations Convention on the Rights of Persons with Disabilities, which India ratified in 2007.
In this article, we will look at important highlights and statistics available in the standing committee Report on ‘Assessment of Scheme for Implementation of Rights of Persons with Disabilities Act, 2016 (SIPDA)’. The article will focus on the allocation of funds, the performance of sub-schemes and important campaigns.
Presently, there are 13 components under SIPDA
According to Persons with Disabilities in India – A Statistical Profile 2021, the major sources of statistics on disability are the decennial Population Censuses and the large-scale sample surveys on disability conducted by the National Sample Survey (NSS) of the National Statistical Office. The publication depicts a situational analysis of disabled persons in India mainly on the basis of the results of the NSS 76 round Surveys on Disability (July- December 2018) and Census of India 2011.  As per the Census 2011, there are 14.9 million men with disabilities as compared to 11.9 million women in the country. The total number of differently-abled people is over 18 million in rural areas and 8.1 million in urban settings. The percentage of men with disabilities is 2.41% as against 2.01% in women. Social groups wise analysis shows 2.45% of the total disabled population belong to the Scheduled Castes (SC), 2.05 per cent to the Scheduled Tribes (ST) and 2.18 per cent to other than SC/ST.
The Scheme for Implementation of the Rights of Persons with Disabilities Act, 2016 (SIPDA) is an umbrella scheme with 13 sub-schemes to provide financial assistance for undertaking various activities outlined in the Rights of Persons with Disabilities (RPwD) Act, 2016. The Act endorses the rights of Persons with Disabilities for access to education, vocational training, employment, public transport, built-up environment, information, and communication ecosystems and upholds their independence and dignity.
At present SIPDA has thirteen components, added gradually over the years.
‘Lack of adequate proposals responsible for under-utilisation of funds’
The Budgetary/Revised Estimates and Actual Expenditure for the preceding five years and Budget estimates for the current year under the SIPDA are depicted in the chart below.
The Department attributed the decline in expenditure in 2019-20 mainly to the COVID-19 pandemic. The Department explained that this was also because District Disability Rehabilitation Centre (DDRCs) and Composite Regional Centres (CRCs) coming out of the SIPDA scheme.
SIPDA is Central Sector Scheme, hence it is dependent on States/UTs to receive proposals properly for processing the proposal and releasing the Grants. The Department, on being enquired by the Committee, explained that the SIPDA scheme had to be downsized by 55 crores in 2020-21 after anticipating that major components of SIPDA schemes have not received adequate proposals to meet the expenditure up to the level of Budget Estimate. This was mainly related to the National Action Plan (NAP) for Skill Development.
The Committee expressed concern on the expenditure status of the scheme. According to the Committee report, the budget for SIPDA, which should have been at least doubled in a span of 5 years to achieve the objectives envisaged under the added sub-schemes/components, has remained almost stagnant. The pace of expenditure during the year 2016-17 onwards has not increased despite the expansion in the scope of the schemes during the period, rather the expenditure has nose-dived in 2019-20 to 2020-21.
Further, the Committee held that holding COVID-19 responsible for it is not justified as the Department has themselves also stated reasons like pendency of Utilisation Certificates (UCs), lack of proposals under NAP for Skill Development as well as Braille Press sub-scheme, etc. for a reduction in actual expenditure.
The Committee asserted that the Department should have analysed the reasons for an insufficient number of proposals under these sub-schemes and promoted the same. Poorly performing components like Braille press, research on disability technology, etc. should have been pre-examined.
Limited states working towards building barrier-free environment under SIPDA; no progress in making websites accessible
The barrier-free sub-scheme component is under SIPDA from the beginning i.e., 1999. Under this, the grant is provided to Departments of the State Governments/UTs, Autonomous Bodies/ Public Sector Undertakings including Central/State Universities to provide a barrier-free environment for persons with disabilities. This would include provision for ramps, rails, lifts, accessible toilets for wheelchair users, Braille signage and auditory signals, tactile flooring, slopes in pavements for the easy access of wheelchair users, engraving on the surface of zebra crossing for the blind or for persons with low vision, engraving on the edges of railway platforms for the blind or for low vision and devising appropriate symbols of disability, etc.
For creating a barrier-free environment, grant-in-aid released to states and institutions is depicted below.
Upon enquiry, the Department explained that the fund has been released only to a limited number of states because no proposals have been submitted by the remaining states. The Department also clarified that no pending proposals are lying at the Department for previous years as well.
Further, grants-in-aid were released to the Universities/Colleges/ Institutions etc. in 9 States only.
The Committee noted that since disability being a state subject, it is the responsibility of States/UTs to make their buildings and other infrastructure accessible as per RPwD Act, 2016. The committee enquired about the time frame fixed for the creation of a barrier-free environment and steps being taken by the Department to sensitize the States/UTs, from where the proposals are not being received.
However, the report reveals that the Department has no such timeline but takes serious efforts to sensitize the States/UTs to send the proposals under the Barrier-Free component.
The Committee noted that there appears to be a lack of enthusiasm amongst State Governments/UT administrations on this sub-scheme. The Committee recommended that the Department needs to make extra efforts than merely sending routine letters to raise awareness, sensitize and remind States/UTs every year for sending viable proposals if they intend to make this sub-scheme successful. The Department could offer expert advice on the preparation of viable proposals, preparing ready reckoners, and setting of annual targets as being done under Accessible India Campaign (AIC) etc.
Under the barrier-free component in SIPDA, grants are also provided to make Government websites at the Centre/State and District levels accessible to PwDs, in compliance with the guidelines issued by the National Informatics Centre and Department of Administrative Reforms and Public Grievances.
‘The report reveals that, in last three years, no funds have been released for accessible website under Creation of Barrier-Free Environment of SIPDA’
The Committee enquired how the Department proposes to make private websites accessible to PwDs, as currently there are no guidelines in this regard. In response, the department informed that they have written to the Ministry of Information Technology and Electronics (MeiTY) to make accessibility guidelines for the private websites also since currently only GIGW guidelines are meant for government websites.
The Committee counted these as a major setback and recommended that the methodology adopted for fund allocation/release under this component should be reworked immediately.
The slow progress of AIC; only 29.7% of identified buildings and 64.61% of identified websites made accessible since 2015
While the Barrier-free environment sub-scheme is under SIPDA since 1999, a nationwide campaign, Accessible India Campaign (AIC) or Sugamya Bharat Abhiyan, was launched on 03 December 2015 to achieve universal accessibility for persons with disabilities in Built Environment (Buildings) under an identified list, Transport System, and Information & Communication Technology (ICT) ecosystem. Under this Campaign, grants are given to States/UTs to conduct accessibility audits and making only the identified public places/infrastructure of States/UTs fully accessible in a built-up environment and making identified States/UTs websites accessible.
The Committee noted that the overall progress of the AIC or Sugamya Bharat Abhiyan has been slow. Only 494 buildings (29.7%) out of a total of 1662 identified buildings have been made accessible by 9 States/UTs and 558 websites (64.61%) out of 917 websites have been made accessible under this Abhiyan since its inception in December 2015.
Despite postponing the initial target date of July 2016, several States viz. Arunachal Pradesh, Assam, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Punjab, and Tripura still do not have any targets/timelines for making 193 buildings accessible by the extended date of June 2022. The Committee also found while that penal provisions under the Act exist, but those have not been invoked in the cases where the performance of States/UTs and line Ministries is not satisfactory and instead, target dates are being extended continuously.
The Committee was also not satisfied with the pace of work of the line Ministries as Railways are lagging much behind the schedule of making model Railway Stations or providing complete facilities for PwDs in their identified stations. Similarly, the progress in other transportation sectors i.e., Airports and road transport is discouraging as mostly ‘partial’ accessibility has been ensured.
In conclusion, the Committee recommended that there should not be any further extension beyond June 2022. The committee also recommended invoking penal provisions, in case the timelines are not met, as a last resort.
Major lapses in skill training and employability of PwDs under National Action Plan for Skill Development
A National Action Plan for Skill Development, a central sector scheme, was launched pan India by the Department in collaboration with the Ministry of Skill Development and Entrepreneurship in March 2015. Skill training is imparted through organizations empanelled as Training Partners from across the country.
The details of the funds allocated and released are depicted below.
Upon enquiry, the Department submitted that no yearly target was fixed till 2017-18.  During the year 2019-20, NAP underwent a rigorous overhaul in the process as well as the introduction of several monitoring mechanisms. Furthermore, in the current financial year, due to the outbreak of the pandemic, training commenced by some ETPs of the Department in March 2020 could not be completed, whereas some other ETPs which had planned to commence the training could not even start it.
The Committee finds that the National Action Plan for Skill Development, since its inception, had to undergo vigorous overhaul within a span of two years due to operational issues such as lack of guidelines, non-commencement of training or substantial delay in commencement and completion of training, lack of infrastructural facilities, etc.
The Committee strongly emphasised that the number of beneficiaries would have been more had the Department prudently drawn up proper guidelines at the beginning itself. Now, the Department has reportedly taken several initiatives such as switching from ‘project’ mode to ‘batch mode’, the introduction of Biometric attendance, an inspection of centres, condition of three years of experience for ETPs in skill training, etc. to address the operational issues. In the light of these initiatives, the Committee expects that the quality of skill training and the number of beneficiaries would improve in the coming years.
Further, it was found that only 41,931 PwDs have been employed so far out of 1.27 lakh trained, despite several measures such as an instruction to ETPs to ensure employment after training, NHFDC extending loans to PwDs, the establishment of NSK’s in various States, etc.
The Committee, therefore, recommend that a comprehensive study should be conducted to identify the reasons for such low employability despite several initiatives of the Department and suggest a suitable remedy.
Meagre funding under R&D, high dependence on imports
The Scheme for research on disability-related technology, products and issues was launched in January 2015 with an objective to promote research in the prevention and prevalence of disability and the application of science and technology for the development of indigenous aids and appliances for PwDs.
The Committee noted that the fund allocation under the scheme is too meagre. Only ₹ 3.30 crores were allocated for research on disability-related technology, products and issues and ₹ 1.49 crores could only be spent from 2016-17.
While Committee noted that products like ‘Sugamya’ Cane and Cochlear implant have been developed, the limited availability of funds is hampering the research and as a result, the Department has not been able to develop even small products such as retrofit kits and batteries for motorized tricycles necessitating those to be imported.
The Committee stressed the need to enhance allocation to research, develop technology indigenously, and minimize dependence on import. The Committee also recommended that the Department should keep abreast of technological developments and involved talented private entrepreneurs in the country, wherever needed.
No takers for scheme incentivizing employers to employ PwDs
To encourage the private sector to employ persons with disabilities, a scheme of incentives to the employers in the private sector for providing employment to PwD was launched in 2008-09. The scheme envisaged payment of employer’s contribution for 3 years to the EPF and ESI by the Government with a salary ceiling of ₹ 25,000/- per month. The scheme was revised from 01 April 2016, whereby, payment of employers’ contribution for EPF and ESIC by the Government has been increased up to 10 years. The salary ceiling has been removed for the PwD employees. The Department of Empowerment of Persons with Disabilities (DEPwD) will bear one-third of the gratuity amount due and admissible to PwD employees.
The Committee notes that no funds have been released under the scheme since 2015-16.
Upon enquiry, the Department submitted that despite publicity of the scheme, not much response has been given by the private employers.
The Committee recommend that the Department in their process of review should exhaustively examine the reasons due to which the Scheme has failed and examine the role of entrepreneurs/employers in offering employment to the disabled in advanced countries. They may need to be informed about the kind of jobs that can be handled by PwDs efficiently. The Committee also recommended that providing direct incentives to private employers may work instead of opting to share EPF contributions. They further feel that suggestions can also be obtained from the entrepreneurs/employers and other stakeholders before the scheme is revised.
Sugamya Bharat App enables the public to highlight accessibility-related issues, slow implementation of PwD helpline
The Committee was informed that the Minister of Social Justice and Empowerment launched the Sugamya Bharat App – a Crowdsourcing Mobile App on 02 March 2021. This App enables PwD and the general public to bring to notice accessibility-related issues that require redressal. Upon receipt of complaints through the App, the complaints are forwarded to nodal authorities, at the Central Government Ministries/Departments level or States/UTs level, by the dedicated Project Management Unit (PMU) after screening the complaints. The nodal authorities are responsible for taking action on the complaints.
The Committee appreciated the launch of the ‘Sugamya Bharat’ App with an objective to crowdsource the complaints being faced by PwDs regarding the inaccessibility of public infrastructure services. The Committee noted that out of total of 518 complaints received, 158 only could be closed and 360 were forwarded to the concerned authorities. And only 26 complaints have been resolved to date.
The Committee envisions that the number of complaints would multiply once the app gains popularity amongst the public. Keeping the volume of complaints into consideration and the time consumed in addressing the complaints, as only 26 complaints have been resolved out of 518 received, the Committee recommended a strong mechanism needs to be developed to follow up and resolve the complaints in the minimum time possible.
The Committee also expressed that wide publicity should be given to Sugamya Bharat APP so that more PwDs use it and all the stakeholders, who are responsible for providing accessibility-related facilities and services to PwDs, get feedback from the beneficiaries. The Committee also opined that the nature of the complaints can be studied to understand the problems faced by PwDs in a particular area so that they can be addressed suitably in the upcoming projects.
Moreover, the Central Advisory Board on disability, in November 2020, had urged the States/UTs to set up helpline numbers for disabled persons. The Committee finds that only 10 States have established helplines to date, which does not include Delhi. The Committee recommended that the matter should be vigorously pursued with all the remaining States/UTs to ensure that helpline is established in all the States/UTs within three months.
Featured Image: Schemes for Persons with Disabilities

created: September 6, 2021