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    Financial stability report by RBIFINANCIAL STABILITY BILL

    WHAT IS FINANCIAL STABILITY BILLThe FSR, published every six months, aims to create

    awareness about the vulnerabilities in the financial

    system, to inform about the resilience to stress of the

    financial institutions and to generally serve as a health

    check on the financial system.

    The Report reflects the collective assessment of the Sub-

    Committee of the Financial Stability and Development

    Council (FSDC) on risks to financial stability.

    EFFECT OF FINANCIAL STABILTY BILL

    The commencement of the taper should signal a calibratedreturn to normal liquidity and credit conditions in the

    global markets and also better pricing of risk. This will

    mean a repricing of certain assets with consequent

    volatility. Efforts during the past few months have been

    directed to make the Indian economy more resilient to the

    ultimate withdrawal of liquidity from the system and less

    reliant on unstable external capital for growth.

    HIGLIGHTS

    The US Federal Reserve has now laid to rest theuncertainty on timing of the exit and tapering in its bond

    purchase programme, which is set to begin from January2014. However, financial market volatility will beconditioned by the pace of tapering going forward.Realignment of global growth as well as high inflationdifferential between advanced economies (AEs) andEmerging Markets and Developing Economies (EMDEs) isa potential source of exchange rate volatility and mayresult in volatile cross-border flows with every repricing ofrisk.The delay in tapering allowed India to bring aboutadjustment in the current account deficit (CAD) and buildbuffers by replenishing its foreign exchange reserves.However, macro-economic adjustment is far from

    complete, with persistence of high inflation amidst growthslowdown. Fall in domestic savings and high fiscal deficitare other major concerns for India.Corporate performance continues to be weighed down byboom period expansions and excess capacities, amidshifting asset composition towards financial investments.House prices and outstanding loans for housing by housingfinance companies have grown relatively faster during thelast few years.Inadequate social security coverage in India against abackdrop of changing demographics will pose challenges

    for expanding the pension system given the fiscaconstraints. The National Pension System (NPS) wascreated to serve Government employees and private sector

    workers.

    The risks to the banking sector have further increasedsince the publication of the previous FSR in June this yearAll major risk dimensions captured in the Banking StabilityIndicator show increase in vulnerabilities in the bankingsector.

    Network tools have been used to assess impact ofcontagion due to risk of credit concentration. Failure of amajor corporate or a major corporate group could trigger acontagion in the banking system due to exposures of alarge number of banks to such corporates.

    Asset quality continues to be a major concern forScheduled Commercial Banks (SCBs). The Gross Non-performing Assets ratio of SCBs as well as theirrestructured standard advances ratio have increasedTherefore, the total stressed advances ratio rosesignificantly to 10.2 per cent of total advances as at endSeptember 2013 from 9.2 per cent of March 2013.

    Five sectors, namely, Infrastructure, Iron & Steel, TextilesAviation and Mining together contribute 24 percent ototal advances of SCBs, and account for around 53 per centof their total stressed advances.

    Macro stress tests on credit risk suggest that if the adversemacroeconomic conditions persist, the credit quality ocommercial banks could deteriorate further. Howeverunder improved conditions, the present trend in creditquality may reverse during the second half of 2014-15.

    India stands committed to the implementation of theglobal regulatory reforms agenda and has madeconsiderable progress on this front. Although firms andmarkets are beginning to adjust to the regulatory approachtowards ending too-big-to-fail (TBTF), recent researchindicates continued expectation of sovereign support to

    such institutions.

    Due to the interconnectedness with banks, liquiditypressure is felt by the money market mutual funds(MMMFs) whenever redemption requirements of banksare large and simultaneous. Regulatory measures taken toreduce the degree of interconnectedness seem to havebeen successful in reducing the liquidity risk in the system.Indias domestic markets for interest rate derivatives havenot taken off due to the absence of some of the basicbuilding blocks. Efforts are on to address these issues.

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    Action to create central repositories for the banking sector,corporate bond market and insurance sector has beeninitiated. This move is expected to break the information

    asymmetry in those markets.

    It has been observed that the equity prices of thecompanies in which the promoters had pledged significantportions of their shares, are relatively more volatile thanthe broader market during times of correction.

    USA sub-prime crisis and its influence on India

    2008 - USA pump pricing (during recession country

    provides stimulus to recover economy US provided in

    cash and kind decrease in taxes, waving of loan from

    agriculture and manufacturing sector, cash to

    unemployed) and policy of protectionism (promote exportand decline import)

    2009 UK recession (PIGS countries) - Stimulus

    programme adopted

    Both the above countries provided loan to the developing

    Asian countries

    Loan taken and invested in countries like India as rupee

    value was high

    After recovery of economy in USA and UK rupee value

    decline as dollar value increase

    USA and UK demand the loan back which affected India

    increase of CAD

    In 2012 -13 USA stopped stimulus package and start

    taxation (fiscal cliff)

    NPAs need priority tackling: RBI

    Non performance asset discussed in class

    Turbulent days in South Sudan

    Coup against President of South Sudan Salva Kiir and

    opposition Riek Machar

    Indias role in UNMISS

    African crisis notes given and discussed in class

    Technologically advanced projects and emerging

    concerns

    Indus water treaty award analysis

    Kishenganga River project analysis discussed and notes

    given

    Centre still a divided house over field trials for GM

    crops

    Genetically modified cropsControversy regarding GM crops

    Controversy arised as agriculture is a state subjectwhereas GM is a centre subject

    Concept and leakage speculation by the

    influenced

    No relation between GM and food security so need

    for intensification of agriculture

    GM crops are terminator seeds

    Contamination of food cycle

    Committees

    Paroda committee GM with field trials

    Parliamentary standing committee Basudeb Acharya

    committee

    Basudeb Acharya committee recommendation

    Genetic engineering approval committee gives consent

    for field trial highly politised

    National biotechnology institution

    Bt brinjal controversy Bihar protest against Bt Brinjal

    loss of local ecosystem

    No relationship between GM and food security

    Need for intensification of agriculture

    GM increases the burden of our farmer leading to

    farmer suicide

    Without laboratory trial its very risky to establish

    Bt trial

    GM acts as invasive species loss of Biodiversity

    land degradation

    Ministry of Agriculture and Ministry of Science and

    Technology (both for GM crops) against min o

    environment (against GM crops) people filed PIL

    SC Technical expert committee

    Court panel on GM crops exceeded: Ministers

    GM CROPS (Essay) (V.Imp)INTRODUCTION

    India with its large biodiversity is a major centre of origin

    of several crops and has arguably the longest continuous

    history in the world of high intensity agriculture which has

    formed the basis of an agrarian society that continues to

    grow and develop in the present day. Greater than 60% of

    Indians depend directly or indirectly on agriculture for

    their livelihood. The subcontinent has harboured a

    population of >100m for over 300 years. However within

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    the last 100 years the Indian population has increased

    over 4-fold, and within the last 50 years alone the increase

    has been over 2.5-fold. The demands this has placed on the

    land and resources available for agricultural production

    are unprecedented in human history and it is remarkable

    that India has achieved self-sufficiency in food production

    although this has come at a cost. The increases in yield that

    have been achieved through the green

    Revolution have plateaued and come at the expense of

    excessive utilization of groundwater resources

    WHAT ARE GENETICALLY MODIFIED CROPS

    The term GM foods or GMOs (genetically-modified

    organisms) is most commonly used to refer to crop plants

    created for human or animal consumption using the latest

    molecular biology techniques. These plants have been

    modified in the laboratory to enhance desired traits such

    as increased resistance to herbicides or improved

    nutritional content. The enhancement of desired traits has

    traditionally been undertaken through breeding, but

    conventional plant breeding methods can be very time

    consuming and are often not very accurate.

    The new genetically-modified plant will gain drought

    tolerance as well. Not only can genes be transferred from

    one plant to another, but genes from non-plant organisms

    also can be used. The best known example of this is the useof B.t. genes in corn and other crops. B.t., or Bacillus

    thuringiensis, is a naturally occurring bacterium that

    produces crystal proteins that are lethal to insect larvae.

    B.t. crystal protein genes have been transferred into corn,

    enabling the corn to produce its own pesticides against

    insects such as the European corn borer.

    ADVANTAGES OF GM CROPS

    The world population has topped 6 billion people and is

    predicted to double in the next 50 years. Ensuring an

    adequate food supply for this booming population is going

    to be a major challenge in the years to come. GM foods

    promise to meet this need in a number of ways:

    Pest resistance

    Herbicide tolerance

    Disease resistance

    Cold tolerance

    Drought tolerance/salinity tolerance

    CRITICISM AGAINST GM CROPS

    Environmental activists, religious organizations, public

    interest groups, professional associations and other

    scientists and government officials have all raised

    concerns about GM foods, and criticized agribusiness for

    pursuing profit without concern for potential hazards, and

    the government for failing to exercise adequate regulatory

    oversight. It seems that everyone has a strong opinion

    about GM foods.

    Environmental hazardsUnintended harm to other organisms: Unfortunately

    B.t. toxins kill many species of insect larvae

    indiscriminately; it is not possible to design a B.t. toxin that

    would only kill crop-damaging pests and remain harmless

    to all other insects.

    Reduced effectiveness of pesticides: Just as some

    populations of mosquitoes developed resistance to the

    now-banned pesticide DDT, many people are concerned

    that insects will become resistant to B.t. or other crops that

    have been genetically-modified to produce their own

    pesticides.

    Gene transfer to non-target species:Another concern is

    that crop plants engineered for herbicide tolerance and

    weeds will cross-breed, resulting in the transfer of the

    herbicide resistance genes from the crops into the weeds

    These "superweeds" would then be herbicide tolerant aswell. Other introduced genes may cross over into non

    modified crops planted next to GM crops.

    Increased use of Herbicides: Scientists estimate that

    plants genetically engineered to be herbicide-resistant wil

    greatly increase the amount of herbicide use. Farmers

    knowing that their crops can tolerate the herbicides, wil

    use them more liberally.

    More Pesticides: GM crops often manufacture their own

    pesticides and may be classified as pesticides by the EPA

    This strategy will put more pesticides into our food and

    fields than ever before.Ecology may be damaged:The influence of a genetically

    engineered organism on the food chain may damage the

    local ecology. The new organism may compete successfully

    with wild relatives, causing unforeseen changes in the

    environment.

    Gene pollution cannot be cleaned up: Once genetically

    engineered organisms, bacteria and viruses are released

    into the environment it is impossible to contain or recall

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    them. Unlike chemical or nuclear contamination, negative

    effects are irreversible.

    Human health risks

    Allergenicity: There is a possibility that introducing a

    gene into a plant may create a new allergen or cause an

    allergic reaction in susceptible individuals.

    Unknown effects on human health: There is a growing

    concern that introducing foreign genes into food plants

    may have an unexpected and negative impact on human

    health.

    Economic concerns: Bringing a GM food to market is a

    lengthy and costly process, and of course agri-biotech

    companies wish to ensure a profitable return on their

    investment. Many new plant genetic engineering

    technologies and GM plants have been patented, and

    patent infringement is a big concern of agribusiness.

    OTHER HAZARDS

    No Long-Term Safety Testing: Genetic engineering uses

    material from organisms that have never been part of the

    human food supply to change the fundamental nature of

    the food we eat. Without long-term testing no one knows if

    these foods are safe.

    Toxins: Genetic engineering can cause unexpected

    mutations in an organism, which can create new andhigher levels of toxins in foods.

    Decreased Nutritional Value: Transgenic foods may

    mislead consumers with counterfeit freshness. A fresh-

    looking, bright red genetically engineered tomato could be

    several weeks old and of little nutritional worth.

    Antibiotic Resistant Bacteria: Genetic engineers use

    antibiotic-resistance genes to mark genetically engineered

    cells. This means that genetically engineered crops contain

    genes which confer resistance to antibiotics. These genes

    may be picked up by bacteria which may infect us.

    Problems Cannot Be Traced: Without labels, our public

    health agencies are powerless to trace problems of any

    kind back to their source. The potential for tragedy is

    staggering.

    Side Effects can kill: Modified proteins, amino acids

    arising due to genetic modifications can be lethal to human

    beings.

    CONCERNS ON Bt CROPS

    The scientists are increasingly worried about the growing

    emergence of biological toxins like Bt and the threat they

    pose to our health and environment. New estimates are

    that each Bt plant produces within itself a heavy dose of

    toxins equal to 4.2 kg per hectare, 19 times more than the

    average use of chemical pesticides. Still more worrisome is

    a recent Canadian study that shows widespread presence

    of Bt-related insecticides in the blood of 93% pregnant

    women and in 80% of foetuses.

    Alarmingly, there is still no clarity on what does this mean

    for human health impacts. Studies have however been

    carried out on rats. In these first-ever long-term feeding

    trials on rats, it was observed that females developed fata

    mammary tumours and pituitary disorders. Males suffered

    liver damage, developed kidney and skin tumours and

    experienced problems with their digestive system. The

    team also found that even lower doses of GM corn and

    Roundup weedicides resulted in serious health impacts

    Moreover, 50 per cent male and 70 per cent female rats

    died prematurely. The tumours were 2.5 times bigger than

    what would normally appear in the control population.

    Owing to these issues, there has been swelling opposition

    to the manner in which GM crops are being pushed. Many

    State governments have already refused permission for

    field trials of GM crops.

    GM CROP ISSUE IN INDIABACKGROUND

    In India it all started with Bt cotton and Bt Brinjal

    regarding control, regulation, marketing production, safety

    of such crops. Here the Bt refers to Bacillus thuringenesis

    soil bacterium from which the genes are introduced in to

    the native cotton and brinjal varieties. The gene gave an

    expression in cotton which produced a protein in the

    cotton crop that was toxic to the boll worms and stem

    borers (pests) i.e., pest resistant variety. Now the issue

    with us already with many political parties, farmerscomplaining introduction such GM cotton, Brinjal(stopped

    after initial intro) as the cause for increasing farmer

    suicides in Karnataka, Vidharbha region. High input cost of

    seeds, genetic erosion of local varieties, farmers

    dependence on private seed cost are said to be the reasons

    In this scenario our parliamentary committee on

    Agriculture has submitted a report on CULTIVATION OF

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    GENETICALLY MODIFIED FOOD CROPS PROSPECTS AND

    EFFECTS

    Why is India focused so much on research and experiment

    of these crops?

    Apart from the above mentioned disadvantages with

    regard to GM crops India is also binding to sertain

    international treaties which presses on conserving its

    biological diversity and conserving environment and

    human health. Someof the treaties are:

    The Codex Alimentarius Commission (CAC) implements

    the joint Food Standards Programme and provides

    guidelines and standards for food

    safety. It develops guidance documents from time to time

    on issues related to

    food safety including foods derived from biotechnology.

    India became a

    member of the CAC in 1964.

    Agenda 21 is a non-legally binding comprehensive plan for

    actions to be implemented globally, nationally, and locally

    by the UN, Governments, and other organizations in areas

    where human activity impacts the environment Agenda 21

    was adopted by 178 Governments including India at the

    United Nations Conference on Environment andDevelopment held in Rio de Janeiro in 1992.

    The Rio Declaration on Environment and Development is a

    statement of 27 principles for the purpose of guiding

    sustainable development across the world.

    The Convention on Biological Diversity is a legally

    binding treaty that has three stated aims: the conservation

    of biological diversity, the sustainable use of the

    components of biological diversity, and the fair,and

    equitable sharing of the benefits arising out of the

    utilization of genetic resources. It comprises of 42 articles

    outlining principles and steps for the identification,

    conservation, and management of biodiversity that

    member countries would follow. 193 countries are parties

    to the CBD including India. The CBD also brings out

    guidance documents on issues related to biodiversity such

    as on risk assessment of LMOs

    The Cartagena Protocol on Biosafety (CPB) to the

    Convention on Biological Diversity is an international

    agreement aimed at "ensuring an adequate level o

    protection in the safe transfer, handling, and use of living

    modified organisms (LMOs) resulting from modern

    biotechnology that may have adverse effects on the

    conservation and sustainable use of biological diversity

    also taking into account risks to human health, and

    specifically focusing on transboundary movements

    The Indian GMO Regulatory Structure: The apex

    regulatory body for evaluation of GMOs/LMOs is the

    Genetic Engineering Appraisal Committee (GEAC) located

    in the Ministry of Environment and Forests (MoEF). The

    second arm of the regulatory body is the Review

    Committee on Genetic Manipulation (RCGM) located

    within the Department of Biotechnology (DBT) of the

    Ministry of Science and Technology. Examination of health

    safety and molecular characterization is the purview o

    RCGM and environmental safety comes under the overal

    purview of GEAC, however, RCGM also examines

    information on environmental safety.

    THE CURRENT ISSUE

    Recently in October 2012, a high-level committee

    appointed by the Supreme Court has recommended

    stopping all ongoing open field trials on GM crops for 10

    years until a new set of conditions is enforced.These recommendations constitute a key input to the

    Supreme Court of India, which has been hearing public

    interest litigation filed by a clutch of independent

    scientists as well as activist organisations against the GM

    crops.

    Key recommendations by the committee include:

    Recommended stopping all ongoing open field

    trials on such crops for 10 years until a new set of

    conditions is enforced.

    Reassessment of the biosafety data that isgenerated by field trials

    ensuring there is no conflict of interest (that is

    those tasked with evaluating the biosafety of GM

    crops are themselves not stakeholders in

    promoting such crops)

    a ban on outsourcing or subcontracting field trials

    Ensuring that crops being considered for testing is

    evaluated by rodent-feeding trials.

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    In the case of crops of Indian origin or diversity

    the TEC had recommended that transgenics not be

    allowed for field trials as the deployment of

    transgenics commercially under open conditions

    would adversely affect the diversity of these crops

    which represents an important cultural heritage

    and special measures should be taken to preserve

    it as much as possible

    The TEC was of the view that there should be

    requirement of some basic information on

    biosafety prior to FTs and also recommended that

    some experimental tests should be done prior to

    emergence from containment in the laboratory or

    greenhouse and suggested possible examples

    GM CROPS AND WORLD COUNTRIESGovernments around the world are hard at work to

    establish a regulatory process to monitor the effects of and

    approve new varieties of GM plants. Yet depending on the

    political, social and economic climate within a region or

    country, different governments are responding in different

    ways.

    In Japan, the Ministry of Health and Welfare has

    announced that health testing of GM foods will be

    mandatory. Currently, testing of GM foods is voluntary.

    Japanese supermarkets are offering both GM foods and

    unmodified foods, and customers are beginning to show a

    strong preference for unmodified fruits and vegetables.

    Currently, testing of GM foods is voluntary. Japanese

    supermarkets are offering both GM foods and unmodified

    foods, and customers are beginning to show a strong

    preference for unmodified fruits and vegetables.

    Brazilian farmers, however, have resorted to smuggling

    GM soybean seeds into the country because they feareconomic harm if they are unable to compete in the global

    marketplace with other grain-exporting countries.

    In Europe, anti-GM food protestors have been especially

    active. In the last few years Europe has experienced two

    major foods scares: bovine spongiform encephalopathy

    (mad cow disease) in Great Britain and dioxin-tainted

    foods originating from Belgium. These food scares have

    undermined consumer confidence about the European

    food supply, and citizens are disinclined to trust

    government information about GM foods. In response to

    the public outcry, Europe now requires mandatory food

    labeling of GM foods in stores, and the European

    Commission (EC) has established a 1% threshold for

    contamination of unmodified foods with GM food products

    In the United States, the regulatory process is confused

    because there are three different government agencies

    that have jurisdiction over GM foods. The EPA, USDA and

    FDA.

    USA has adopted herbicide-tolerant and insect-resistant

    crops since their introduction in 1996. Some of the

    products grown are corn, cotton, and soybeans

    LABELING OF GM CROPSLabeling of GM foods and food products is also a

    contentious issue. On the whole, agribusiness industries

    believe that labeling should be voluntary and influenced by

    the demands of the free market. If consumers show

    preference for labeled foods over non-labeled foods, then

    industry will have the incentive to regulate itself or risk

    alienating the customer. Consumer interest groups, on the

    other hand, are demanding mandatory labeling. People

    have the right to know what they are eating, argue the

    interest groups, and historically industry has proven itself

    to be unreliable at self-compliance with existing safety

    regulations

    CONCLUSION

    As far as the role of GM crops in boosting food security

    needs is concerned, this argument is not evidence-based

    First, there is no GM crop anywhere in the world which

    increases crop productivity. In fact, even the U.S

    Department of Agriculture acknowledges that the

    productivity of GM soya and GM corn in the U.S. is less than

    the conventional varieties. The prevailing drought in theU.S. has conclusively shown that it is only non-GM crops

    that have withstood the harsh weather. It also raises

    doubts over stress tolerance of GM crops. In India, on June

    1, 2012, a record 82.3 million tonnes surplus of wheat and

    rice was stored. This surplus existed at a time when an

    estimated 320 million people went to bed hungry. Food

    insecurity, therefore, is not the result of any production

    shortfall. Paying more to farmers would entail more

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    production. At a time when GM crops hold no promise of

    higher crop production, the latest long-term scientific

    research on the impacts on health warrants repeated trials

    under all environments. As suggested by TEC and the

    Standing Committee, more experiments are needed on

    farm animals. Since science is answerable to society, and

    cannot be allowed to operate in a vacuum, this is the least

    India can do to dispel any fear.

    Sumi Naga tribal siege forces

    insurgents to flee camp at MukalimiNaga issue

    North East India separatist movement (for a separate

    state and separate country)First fight - Naga tribes demand for Greater Nagalim

    Naga tribe claim - South Arunachal Pradesh, Eastern

    Assam, Western and North Western Myanmar, South West

    China and North Manipur

    Tribes of Nagaland Kuki, Methi and Naga(29 major

    groups)

    First fight - In Manipur Kuki Naga demand for 4 areas

    Ukhrul , Chandel, Tamenglong and Senapathi - conflict

    between Kuki Naga and Naga tribe

    According to Methi tribes Manipur belongs to them

    Second reason - Naga Socialistic Union Party (IsakMuivah) runs parallel government along the Nagaland

    government - initially was supported by Naga people but

    later was discouraged when there was a split in the party

    India initiated peace negotiation

    Important for India as Nagaland is a strategic location. So

    GOI started new initiatives:

    Appointment of the interlocutors from their own

    community educated Naga

    Development strategy (2013 budget Pandora box for

    Manipur TipaiMukh dam, green field airport, railway

    lines, Consumer food industries, PMSSY establishment of

    institutions like AIIMs and to promote higher education)

    National Bamboo mission

    Report says enrolment of disabled children in

    government school under 1%Disabled group constituted one of the biggest group of

    dropouts

    Disability issue discussed in the class

    Criticism of Right to Education

    DBTL schemesAll domestic cylinders are sold at market price

    Project Lakshya DBT fiscal consolidation strategy tocontrol leakages

    New system to halt train in case of fireSafety technology adopted from an Australian company

    pros and cons of the technology in Indian railways

    KAKODKAR COMMITTEE

    RECOMMENDATIONS ON RAILWAY

    SAFETY

    Though data of consequential train accident over the yearson has been showing declining trend despite phenomena

    growth of traffic, safety on Indian Railways remains to be a

    mater of serious concern.

    The Ministry of Railways had appointed a High Level

    Safety Review Committee under the chairmanship of Dr

    Anil Kakodkar to review the safety of the Indian Railways

    and recommend improvements. The Committee recently

    presented it report.

    If the Committees recommendations are accepted, the

    total financial implication over the five year period is likely

    to be Rs 1,00,000 crore.The key observations and recommendations of the

    Committee are listed below:

    The Committee notes that the present environment on

    Indian Railways reveals a grim picture of inadequate

    performance largely due to poor infrastructure and

    resources, and lack of empowerment at the functional level

    The financial state of Indian Railways is at the brink of

    collapse unless some concrete measures are taken

    Passenger fares have not been increased in the last decade

    and the infrastructure is severely strained. All safety

    margins have been squeezed. This has led to a neglect of

    infrastructure maintenance.

    In the present situation, the three vital functions (rule

    making, operations and the regulation) are all vested in the

    Railway Board. There is need for an independent

    mechanism for safety regulation. The Committee

    recommends the creation of a statutory Railway Safety

    Authority with enough powers to have a safety oversight

    on the operational mode of Railways.

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    The Research Design and Standards Organization (RDSO),

    the apex technical wing of the Railways, is highly

    constrained. This has hampered the ability of the system to

    internalize emerging technologies. The Committee

    recommends restructuring of RDSO for greater

    empowerment. It also recommends that a Railway

    Research and Development Council (RRDC) be set up

    directly under the government.

    The Committee recommends the adoption of an Advanced

    Signalling System (akin to the European Train Control

    System) for the entire trunk route length of 19,000 km

    within 5 years. This is estimated to cost Rs 20,000 crore.

    All Level Crossings (both manned and unmanned) should

    be eliminated over five years. An estimated expenditure of

    Rs 50,000 crore will be required for achieving this target.

    The Committee is of the belief that this amount will be

    recovered within 7-8 years through savings in

    maintenance costs and improved train operations.

    The Committee also recommends a switch over from the

    ICF design coaches to the much safer LHB design coaches.

    This is likely to cost Rs 10,000 crore over the next five

    years

    Manpower gaps

    On the manpower gaps in the safety category in the

    Railways, the panel's recommendation for a time-boundfilling up of vacancies in Critical Safety Categories and

    Manpower Planning Issues, addresses the demand by

    railway unions such as the Southern Railway Mazdoor

    Union and the All India Loco Running Staff Association.

    Uncertainty in BangladeshUncertainty started in 2012 spread of Arab spring

    As of now Sheik Hasina government rules Bangladesh and

    is a liberal government

    They issued war trial against old fundamentalist

    (supported by Khaleda Zia)Awareness about Rights of the Bangladesh youth who

    were supported by Hasina government was spread

    through social networking sites - shahbag square

    In the recent election the fundamentalist wanted UN

    intervention

    Hasina government brought stability in the country after 8

    years of struggle and says outside interference is not

    required

    Hasina was also criticized by the same young group for

    supporting India for all their demand and for declining

    China but India has not responded to Bangladesh actively.

    Counting ConundrumDifference in NSSO survey results impact and

    suggestions

    Application

    Failure of Indian policy

    Controversy regarding service

    Challenges of Indian democracy

    Issues related to development

    Superficial image of India in the internationa

    reports HDI

    Women open door open for other

    womenWomen winning elections increase in the number o

    female candidates

    PersonalityMaldives President - Yameen Abdul Gayoom

    IAF chief Arup Raha

    Taxonomist passes away T C Narendran recipient of E

    K Janaki Ammal National award of Ministery of

    Environment and forests

    Suresh Das tipped to head CSIR

    Mathew Chosen for Prestigious Journalism award

    Award instituted by a trust founded by

    Lokamanya Bal Gangadhar Tilak

    Mammen Mathew Chief Editor Malayala

    Manorama

    Lokmanya Tilak National award excellence in

    Journalism

    India to ink labour cooperation pact with

    Saudi ArabiaIndias largest migration belong to west Asia

    Legality of West Asian countries are rights driven and also

    our Diaspora are over exploited by Sheiks

    The above reasons worry the GOI for the social security o

    the Indian Diaspora

    India is a hub for illegal visas and middle men

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    Saudi introduced the Nitaqat law which provides for

    mandatory recruitment of locals in the private sector

    Saudi ArabiasNitaqat law costs hundreds of thousands of

    expatriates their jobs. The prospect of unemployment and

    even deportation has triggered awave of anxiety among

    Indian expatriates in the desert kingdom.

    Saudi Arabia has depended on foreign labor for decades.

    This has left a large number of its own nationals

    unemployed. The private sector in particular has preferred

    to hire foreigners.

    It is to tackle unemployment by forcing the private sector

    to hire locals that the government enacted the Nitaqat law

    three years ago, and is now acting to enforce it.

    Indians, who constitute 20 percent of the 7 million-strong

    expatriate population in Saudi Arabia, are understandably

    worried about the impact this law will have on their lives.

    Many have been working here for years and support large

    families back home.

    India has been ready to sign Labour co-operation with

    Saudi to safeguard the interest of Indian Diaspora

    Mechanism to maintain security of the Diaspora:

    Consular

    Social security agreement

    Labour co-operation (to provide awareness

    regarding visa rule, minimum wages awareness

    and security by the sending country not to exploitthe host nation)

    Iran talks end on a positive note

    (Geneva ll)

    GENEVA TALKSBACKGROUND

    Iran's nuclear programme became public in 2002, when an

    opposition group revealed secret activity including

    construction of a uranium enrichment plant at Natanz anda heavy-water reactor at Arak. Enriched uranium can be

    used to make nuclear weapons, and spent fuel from a

    heavy-water reactor contains plutonium suitable for a

    bomb.

    The Iranian government subsequently agreed to

    inspections by the UN nuclear watchdog, the International

    Atomic Energy Agency (IAEA).

    But the IAEA was unable to confirm Iran's assertions that

    its nuclear programme was exclusively for peacefu

    purposes and that it had not sought to develop nuclearweapons.

    This led the US and its European allies to press Iran to stop

    enriching uranium, which can be used for civilian nuclear

    purposes but also - if enriched to 90% purity - to build

    nuclear bombs.

    However, the election of President Mahmoud Ahmadinejad

    in 2005 halted any progress in talks, and the IAEAreferred

    Iran to the UN Security Council for failing to comply with

    itsNuclear Non-Proliferation Treaty (NPT) Safeguards

    Agreement.

    Since then, the Security Council hasadopted six

    resolutions requiring Iran to stop enriching uranium, some

    imposing sanctions.

    In 2012, the US and EU began imposing additiona

    sanctions on Iranian oil exports and banks, crippling Iran's

    economy.

    Despite that, Iran continued to enrich uranium. In 2009, it

    disclosed the existence of a new underground facility at

    Fordo.

    There have been multiple rounds of negotiations between

    Iran and the so-called P5+1 - the five UN Security Counci

    permanent members, the US, UK, France, China, Russia and

    Germany. For years the two sides failed to make headwayBut the mood changed after the election of Hassan Rouhan

    as president and on 24 November 2013, negotiators

    reached aninterim deal after intensive talks in Geneva.

    WHY IS IRAN AN EXCEPTION?

    Ayatollah Khamenei, who is reported to have issued a

    fatwa against nuclear weapons, declared in 2009: "We

    fundamentally reject nuclear weapons and prohibit the use

    and production of nuclear weapons."

    But the IAEApublished a report in 2011 claiming

    "credible" information that Iran had carried out activities

    "relevant to the development of a nuclear explosivedevice".

    The report drew attention to a military complex at Parchin

    south of Tehran, which the IAEA has been unable to visit

    since 2005.

    Reports surfaced in 2000 that a large containment vessel

    had been built there to conduct hydrodynamic

    experiments. The IAEA said such experiments, which

    involve using explosives in conjunction with nuclear

    http://lexarabiae.meyer-reumann.com/issues/2011-2/vol-xv-%E2%80%93-issue-3-july-2011-%E2%80%93-articles/nitaqat-the-new-localization-system-for-jobs-in-the-kingdom-of-saudi-arabia/http://www.randstad.com/the-world-of-work/indian-govt-responds-to-threat-from-saudi-nitaqat-lawhttp://www.iaea.org/Publications/Documents/Board/2006/gov2006-14.pdfhttp://www.iaea.org/Publications/Documents/Board/2006/gov2006-14.pdfhttp://www.un.org/disarmament/WMD/Nuclear/NPT.shtmlhttp://www.un.org/disarmament/WMD/Nuclear/NPT.shtmlhttp://www.armscontrol.org/factsheets/Security-Council-Resolutions-on-Iranhttp://www.armscontrol.org/factsheets/Security-Council-Resolutions-on-Iranhttp://eeas.europa.eu/statements/docs/2013/131124_02_en.pdfhttp://www.iaea.org/Publications/Documents/Board/2011/gov2011-65.pdfhttp://www.iaea.org/Publications/Documents/Board/2011/gov2011-65.pdfhttp://eeas.europa.eu/statements/docs/2013/131124_02_en.pdfhttp://www.armscontrol.org/factsheets/Security-Council-Resolutions-on-Iranhttp://www.armscontrol.org/factsheets/Security-Council-Resolutions-on-Iranhttp://www.un.org/disarmament/WMD/Nuclear/NPT.shtmlhttp://www.un.org/disarmament/WMD/Nuclear/NPT.shtmlhttp://www.iaea.org/Publications/Documents/Board/2006/gov2006-14.pdfhttp://www.iaea.org/Publications/Documents/Board/2006/gov2006-14.pdfhttp://www.randstad.com/the-world-of-work/indian-govt-responds-to-threat-from-saudi-nitaqat-lawhttp://lexarabiae.meyer-reumann.com/issues/2011-2/vol-xv-%E2%80%93-issue-3-july-2011-%E2%80%93-articles/nitaqat-the-new-localization-system-for-jobs-in-the-kingdom-of-saudi-arabia/
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    material or surrogates, were "strong indicators of possible

    weapon development".

    The US has alleged that Iran had a nuclear weaponsprogramme in 2003, but that senior Iranian leaders

    stopped it when it was discovered.GENEVA TALKS

    The Geneva talks involve Iran and the P5+1 - the US,

    Russia, Britain, France and China as permanent UN

    Security Council members, plus Germany.

    World powers suspect Iran has not been honest about its

    nuclear programme and is seeking to build a nuclear

    bomb.

    Iran says it has the right to nuclear energy - and stresses

    that its nuclear programme is for peaceful purposes only.

    Tehran insists it must be allowed to enrich uranium to use

    in power stations.

    OUTCOME OF GENEVA TALKS

    Iran will stop enriching uranium beyond 5%, and

    "neutralise" its stockpile of uranium enriched beyond this

    pointIran has agreed to curb some of its nuclear activities in

    return for about $7bn (4.3bn) in sanctions relief

    The deal will last for six months, while a permanent

    agreement is sought.

    Iran agreed to halt enrichment to medium-grade (20%)

    purity, which can be further enriched to weapons-gradelevel relatively easily, and give better access to UN

    inspectors.

    Iran will give greater access to inspectors including daily

    access at Natanz and Fordo nuclear sites

    There will be no further development of the Arak plant

    which it is believed could produce plutoniumWORLD REACTION TO THE DEAL

    President Barack Obama said the interim deal would "cut

    off Iran's most likely paths to a [nuclear] bomb", while his

    Secretary of State John Kerry said the agreement would

    make the region safer for its allies, including Israel.President Rouhani also welcomed the deal, saying "No

    matter what interpretations are given, Iran's right to

    enrichment has been recognised". Iran's Supreme Leader

    Ayatollah Khamenei, who has final say in nuclear matters,

    called it an "achievement" and a "success".

    The deal however has been sharply criticised by Israel,

    which sees Iran's nuclear programme as a potential threat

    to its existence. Prime Minister Benjamin Netanyahu said it

    was "a historic mistake" and warned that Israel was "not

    bound" by it. Israel neither confirms nor denies it has

    nuclear weapons - a policy known as "nuclear ambiguity"

    though it is widely believed to possess up to 400warheads.

    RBI eases norms to gold dore imports

    APPLICATION: to control smuggling

    External debt drops to $ 400.3 b at end-septemberWhat do you mean by fiscal deficit? Give some of the

    reasons behind fiscal deficit. Suggest some of the solution

    regarding control of fiscal deficit

    New mobile application for womens safety

    Application telltail

    Track me

    Track by vehicle

    Panic button

    India scraps chopper dealScraped scam-ridden VVIP chopper deal with Augusta

    Westland international limited (Italy)

    Personality ex air chief S P Tyagi

    South Sudan Government set for peace talks

    MALNOURISHMENTA malnourished person finds that their body has difficultydoing normal things such as growing and resisting diseasePhysical work becomes problematic and even learningabilities can be diminished. For women, pregnancybecomes risky and they cannot be sure of producingnourishing breast milk.When a person is not getting enough food or not gettingthe right sort of food,malnutrition is just around thecorner. Disease is often a factor, either as a result orcontributing cause. Even if people get enough to eat, theywill become malnourished if the food they eat does notprovide the proper amounts of micronutrients - vitaminsand minerals - to meet daily nutritional requirements.

    MALNOURISHMENT IN INDIA

    Close to 1.3 million children die every year in Indiabecause of malnutrition, according to the World HealthOrganization (WHO). Ninety nine per cent of all under-fivedeaths occur in developing countries, with the mostcommon causes of death being pneumonia, diarrhoea andmalaria. These are illnesses to which children are

    http://www.wfp.org/nutritionhttp://www.wfp.org/nutrition
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    particularly vulnerable, especially when they aremalnourished, a condition that weakens their immunesystems. Malnutrition contributes to more than a third of

    all child deathsThe Govt. of India is increasing food subsidies to addressthis situation, but the rapidly rising population of much ofNorthern India (birth rate has fallen but momentummeans the population continues to rise) posescontinuing challenges.Malnutrition is more common in India than in Sub-Saharan Africa. One in every three malnourishedchildren in the world lives in IndiaMalnutrition limits development and the capacity to learn.It also costs lives: about 50 per cent of all childhood deathsare attributed to malnutrition.In India, around 46 per cent of all children below the age of

    three are too small for their age, 47 per cent areunderweight and at least 16 per cent are wasted. Many ofthese children are severely malnourished.The prevalence of malnutrition varies across states, withMadhya Pradesh recording the highest rate (55 per cent)and Kerala among the lowest (27 per cent).Malnutrition in children is not affected by food intakealone; it is also influenced by access to health services,quality of care for the child and pregnant mother as well asgood hygiene practices. Girls are more at risk ofmalnutrition than boys because of their lower social status.Malnutrition in early childhood has serious, long-termconsequences because it impedes motor, sensory,

    cognitive, social and emotional development.Malnourished children are less likely to perform well inschool and more likely to grow into malnourished adults,at greater risk of disease and early death. Around one-third of all adult women are underweight. Inadequate careof women and girls, especially during pregnancy, results inlow- birth weight babies. Nearly 30 per cent of allnewborns have a low birthweight, making them vulnerableto further malnutrition and disease.Vitamin and mineral deficiencies also affect childrenssurvival and development. Anaemia affects 74 per cent ofchildren under the age of three, more than 90 per cent ofadolescent girls and 50 per cent of women. Iodine

    deficiency, which reduces learning capacity by up to 13 percent, is widespread because fewer than half of allhouseholds use iodised salt. Vitamin A deficiency, whichcauses blindness and increases morbidity and mortalityamong pre-schoolers, also remains a public-healthproblem.FACTORS RESPONSIBLE FOR MALNOURISHMENTSocio-economic statusIn general, those who are poor are at risk for under-nutrition while those who have high socio-economic statusare relatively more likely to be over-nourished. Anaemia is

    negatively correlated with wealth. When it comes to childmalnutrition, children in low-income families are moremalnourished than those in high-income families.

    RegionUnder-nutrition is more prevalent in rural areas, againmainly due to low socio-economic status. Anaemia for bothmen and women is only slightly higher in rural areas thanin urban areas. For example, in 2005, 40% of women inrural areas, and 36% of women in urban areas were foundto have mild anaemia.In urban areas, overweight status and obesity are overthree times as high as rural areasIn terms of geographical regions, Madhya PradeshJharkhand, and Bihar have very high rates of undernutrition. States with lowest percentage of under-nutritioninclude Mizoram, Sikkim, Manipur, Kerala, Punjab, and

    Goa, although the rate is still considerably higher than thatof developed nations. Further, anaemia is found in over70% of individuals in the states of Bihar, ChhattisgarhMadhya Pradesh, Andhra Pradesh, Uttar PradeshKarnataka, Haryana, and Jharkhand. Less than 50% ofindividuals in Goa, Manipur, Mizoram, and Kerala haveanaemia.ReligionStudies show that individuals belonging to Hindu orMuslim backgrounds in India tend to be moremalnourished than those from Sikh, Christian, or Jainbackgrounds.Gender differences

    Ill-treatment of girl child is another cause formalnourishment among girl child than a boy.PREVENTION OF MALNOURISHMENTGOI has involved celebrities like Aamir Khan to campaignagainst malnourishment.Actor Aamir Khan is part of a nationwide campaign to raiseawareness about malnutrition, which is more widespreadin India than Sub-Saharan Africa. The actor, the UNICEFbrand ambassador for malnutrition, has launched thecampaign through advertisements and short films to makepeople aware of the perils of malnourishment. He has shot40 films in 18 languagesIndia is home to the worlds largest child care programme

    Integrated Child Development Services (ICDS), whichstarted in 1978. India's efforts to tackle the challenge ofmalnutrition among children have, in the past, focusedprimarily on distributing supplementary foods under theIntegrated Child Development Services (ICDS)programme.The programme is specifically designed to reachdisadvantaged and low income groups, for effectivedisparity reduction. ICDS provides the convergentinterface / platform between communities and othersystems such as primary healthcare, education, water and

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    sanitation among others. The programme has the potentialto break an intergenerational cycle of undernutrition aswell as address the multiple disadvantages faced by girls

    and women but with adequate investment and enablingenvironment.

    Continued implementation of ICDS Scheme in 12thFive Year Plan and ICDS in Mission mode;

    Programmatic, management and institutionalreforms to be initiated with widened and revisedpackage of services to focus on under-3 children,maternal care, and Early Childhood CareEducation (ECCE) as per the broad framework forimplementation with necessary changes infinancial norms/allocations and outcomes asrecommended by the EFC along with flexibility tothe States with scope for innovations,

    Rolling out Strengthened and Restructured ICDSin three years beginning with 200 High Burdendistricts in the first year 2012-13; additional 200districts in second year (2013-14) includingdistricts from special category States namelyJammu & Kashmir, Himachal Pradesh andUttarakhand and North East Region andremaining 243 districts in the third year (2014-15) of the 12th Five Year Plan.

    The financial implications during 12lh Five YearPlan is estimated at Rs. 1,23,580 crore.

    The strengthening and restructuring of ICDSScheme would:

    Prevent and reduce young child under-nutritionby 10 percentage points in 0-3 years

    Enhance early development and learningoutcomes in all children below six years of age

    Improve care and nutrition of girls and womenand reduce anaemia prevalence in young children,girls and women by one-fifth.

    construction of two lakh anganwadi centres(AWCs) and include new components crche andnutrition counsellor (in high burden districts).

    introduction of Annual ProgrammeImplementation Plan (APIP)

    improving Supplementary Nutrition Programmeincluding cost revision;

    provision for construction and improvement ofbuildings of Anganwadi centres;

    National Children's FundThe National Children's Fund was created during theInternational Year of the Child in 1979 under theCharitable Endowment Fund Act, 1890. This FundProvides support to the voluntary organisations that helpthe welfare of kids.

    National Plan of Action for ChildrenIndia is a signatory to the 27 survival and developmentgoals laid down by the World Summit on children 1990. In

    order to implement these goals, the Department of Women& Child Development has formulated a National Plan oAction on Children. Each concerned CentraMinistries/Departments, State Governments/U.Ts. andVoluntary Organisations dealing with women and childrenhave been asked to take up appropriate measures toimplement the Action Plan. These goals have beenintegrated into National Development Plans. A MonitoringCommittee under the Chairpersonship of Secretary(Women & Child Development) reviews the achievementof goals set in the National Plan of Action. All concernedCentral Ministries/Departments are represented on theCommittee.

    United Nations Children's FundDepartment of Women and Child Development is the nodadepartment forUNICEF. India is associated with UNICEFsince 1949 and is now in the fifth decade of cooperationfor assisting most disadvantaged children and theirmothers. Traditionally, UNICEF has been supporting Indiain a number of sectors like child development, women'sdevelopment, urban basic services, support for communitybased convergent services, health, education, nutritionwater & sanitation, childhood disability, children inespecially difficult circumstances, information andcommunication, planning and programme support.

    National rural health missionIts goal is to "improve the availability of and access toquality health care by people, especially for those residingin rural areas, the poor, women, and children.The subset of goals under this mission are:

    Reduceinfant mortality rate (IMR) and maternamortality ratio (MMR)

    Provide universal access to public health services

    Prevent and control both communicable and non-communicable diseases, includinglocallyendemic diseases

    Provide access to integrated comprehensive primary

    healthcare Create population stabilisation, as well as gender and

    demographic balance

    Revitalize local health traditions andmainstreamAYUSH

    Finally, to promote healthy life stylesThe mission has set up strategies and action plan to meetall of its goals

    http://en.wikipedia.org/wiki/UNICEFhttp://en.wikipedia.org/wiki/Infant_mortality_ratehttp://en.wikipedia.org/wiki/Endemismhttp://en.wikipedia.org/wiki/AYUSHhttp://en.wikipedia.org/wiki/AYUSHhttp://en.wikipedia.org/wiki/Endemismhttp://en.wikipedia.org/wiki/Infant_mortality_ratehttp://en.wikipedia.org/wiki/UNICEF
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    Some of the other direct schemes are:Rajiv Gandhi Schemes for empowerment of Adolescentgirls (SABLA)

    Indra Gandhi Matritva Sahyog YojnaSome of the indirect schemes are:Targeted PDSNational food security billMGNREGANirmal Bharat AbhiyanNational Rural drinking water programme

    THE RIGHT TO FAIR COMPENSATION

    AND TRANSPARENCY IN LAND

    ACQUISITION, REHABILITATION AND

    RESETTLEMENT BILL 2013Land acquisition refers to the process by which

    government forcibly acquires private property for public

    purpose. The Land Acquisition Act, 1894 (1894 Act)

    governs all such acquisitions. Additionally, there are 16

    Acts with provisions for acquisition of land in specific

    sectors such as railways, special economic zones, national

    highways, etc. The 1894 Act does not provide for

    rehabilitation and resettlement (R&R) for those affected by

    land acquisition. In 2007, two Bills were introduced in the

    Lok Sabha: one to amend the Land Acquisition Act, 1894,

    and the other to provide statutory status to the R&R policyof 2007. These Bills lapsed with the dissolution of the 14th

    Lok Sabha in 2009.

    In May 2011, the National Advisory Council recommended

    combining the provisions of land acquisition and R&R

    within a single Bill.

    In July 2011, the Draft Land Acquisition and Rehabilitation

    and Resettlement Bill was published by the Ministry of

    Rural Development for public comments.

    In September 2011, the government introduced the Land

    Acquisition and Rehabilitation and Resettlement Bill in the

    Lok Sabha. This Bill would replace the 1894 Act.

    SIGNIFICANCE OF THE NEW BILL

    The title of the old law conveyed that its primary purpose

    was to expedite the acquisition of land. However, the

    principle objective of the new Bill is fair compensation,

    thorough resettlement and rehabilitation of those affected,

    adequate safeguards for their well-being and complete

    transparency in the process of land acquisition. The title

    has been amended to reflect this.

    HIGHLIGHTS OF THE BILL

    Public purposeLand may be acquired only for public purpose. The Bil

    defines public purpose to include: defence and nationa

    security; roads, railways, highways, and ports built by

    government and public sector enterprises; land for the

    project affected people ; planned development; and

    improvement of village or urban sites and residentia

    purposes for the poor and landless, government

    administered schemes or institutions, etc. This is broadly

    similar to the provisions of the 1894 Act.

    In certain cases consent of 80 per cent of the project

    affected people is required to be obtained. These include

    acquisition of land for (i) use by the government for

    purposes other than those mentioned above, and (ii) use

    by public-private partnerships, and (iii) use by private

    companies.

    Process of land acquisition

    The government shall conduct a Social Impact Assessment

    (SIA) study, in consultation with the Gram Sabha in rura

    areas (and with equivalent bodies in case of urban areas)

    After this, the SIA report shall be evaluated by an expert

    group. The expert group shall comprise two non-officia

    social scientists, two experts on rehabilitation, and atechnical expert on the subject relating to the project. The

    SIA report will be examined further by a committee to

    ensure that the proposal for land acquisition meets certain

    specified conditions.

    A preliminary notification indicating the intent to acquire

    land must be issued within 12 months from the date o

    evaluation of the SIA Report. Subsequently, the

    government shall conduct a survey to determine the extent

    of land to be acquired. Any objections to this process shal

    be heard by the Collector. Following this, if the

    government is satisfied that a particular piece of land mustbe acquired for public purpose, a declaration to acquire the

    land is made. Once this declaration is published, the

    government shall acquire the land. No transactions shall be

    permitted for the specified land from the date of the

    preliminary notification until the process of acquisition is

    completed.

    In case of urgency, the above provisions are not

    mandatory. The urgency clause may be used only for

    defence, national security, and in the event of a natura

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    calamity. Before taking possession of land in such cases, 80

    per cent of the compensation must be paid.

    Compensation to the land owners

    The compensation for land acquisition is determined by

    the Collector and awarded by him to the land owner within

    two years from the date of publication of the declaration of

    acquisition.

    First, the market value of the acquired land is computed as

    the higher of (i) the land value specified in the Indian

    Stamp Act, 1899 for the registration of sale deeds; or (ii)

    the average of the top 50 per cent of all sale deeds in the

    previous three years for similar type of land situated in the

    vicinity.

    Once the market value is calculated, it is doubled for land

    in rural areas. There is no doubling of value in urban areas.

    Then, the value of all assets attached to the land (trees,

    buildings, etc) is added to this amount. On this amount, a

    100 per cent solatium, (i.e., extra compensation for the

    forcible nature of acquisition), shall be given to arrive at

    the final compensation figure.

    Land owners whose property is acquired using the

    urgency provisions shall be given an additional 75 per cent

    of the market value of the land.

    Process of Rehabilitation and ResettlementThe Bill requires R&R to be undertaken in case of every

    acquisition. Once the preliminary notification for

    acquisition is published, an Administrator shall be

    appointed. The Administrator shall conduct a survey and

    prepare the R&R scheme. This scheme shall then be

    discussed in the Gram Sabha in rural areas (equivalent

    bodies in case of urban areas). Any objections to the R&R

    scheme shall be heard by the Administrator. Subsequently,

    the Administrator shall prepare a report and submit it to

    the Collector. The Collector shall review the scheme and

    submit it to the Commissioner appointed for R&R. Oncethe Commissioner approves the R&R scheme, the

    government shall issue a declaration identifying the areas

    required for the purpose of R&R. The Administrator shall

    then be responsible for the execution of the scheme. The

    Commissioner shall supervise the implementation of the

    scheme.

    In case of acquisition of more than 100 acres, an R&R

    Committee shall be established to monitor the

    implementation of the scheme at the project level. In

    addition, a National Monitoring Committee is appointed at

    the central level to oversee the implementation of the R&R

    scheme for all projects.In case the land is being privately purchased (100 acres in

    rural areas and 50 acres in urban areas), an application

    must be filed with the Collector who shall forward this to

    the Commissioner for approval. After the application has

    been approved, the Collector shall issue awards as per the

    R&R scheme.

    Rehabilitation and Resettlement entitlements

    Every resettled area is to be provided with certain

    infrastructural facilities. These facilities include roads

    drainage, provision for drinking water, grazing land

    banks, post offices, public distribution outlets, etc.

    The Bill also provides the displaced families with certain

    R&R entitlements. These include, among other things, (i)

    land for a house as per the Indira Awas Yojana in rural

    areas or a constructed house of at least 50 square metres

    plinth area in urban areas; (ii) a one-time allowance of Rs

    50,000 for affected families; and (iii) the option o

    choosing either mandatory employment in projects where

    jobs are being created or a one-time payment of Rs 5 lakh

    or an inflation adjusted annuity of Rs 2,000 per month per

    family for 20 years.

    Other provisions

    A Land Acquisition and Rehabilitation and Resettlement

    Authority shall be established for settling any disputes

    relating to the process of acquisition, compensation, and

    R&R.

    There shall be no change of ownership of acquired land

    without prior permission from the government. Land may

    not be used for any purpose other than for which it is

    acquired.

    Acquired land which has been unused for 10 years from

    the date of possession shall be returned to the Land Bankof the government. If any unused acquired land is

    transferred to another individual, 20 per cent of the

    appreciated land value shall have to be shared amongst the

    original land owners.

    The government may temporarily occupy and use any

    piece of waste or arable land for a public purpose. This

    occupation may be for a period of not more than three

    years. The compensation of such land may be decided

    mutually by the owner of the land and the Collector. Any

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    disagreement on matters relating to compensation or the

    condition of the land on being returned shall be referred to

    the Land Acquisition and R&R Authority.In any district, land acquisition will be restricted to a

    maximum of five per cent of irrigated multi-crop land

    The provisions of this Bill shall not apply to land

    acquisition under 16 existing laws. These include: the SEZ

    Act, 2005, Atomic Energy Act, 1962 and the NationaHighways Act, 1956.

    Comparison of some key features between the 1894 Act and the 2011 BillIssue 1894 Act Recent bill

    Public

    Purpose

    Includes several uses such as infrastructure,

    development and housing projects. Also

    includes use by companies under certain

    conditions

    No significant change.

    Consent from

    affected

    people

    No requirement. Consent of 80 % of displaced people required in

    case of acquisition for private companies and

    public-private partnerships.

    SIA No provision SIA has to be undertaken in case of every

    acquisition.

    Compensation Based on the market value Market value doubled in rural areas and not in

    urban area

    Market Value Based on the current use of land. Explicitly

    prohibits using the intended use of land

    while computing market value.

    Higher of: (a) value specified for stamp duty, and

    (b) average of the top 50% by recorded price of

    sale of land in the vicinity.

    Solatium 30 % 100 %Resale of land No provision. Prior permission of the government required.

    Sharing of

    profit

    No provision. If the acquired land is unused and is transferred,

    20% of the profits shall be shared with the

    original land owners.

    R&R No provision. R&R necessary for all affected families. Minimum

    R&R entitlements to be provided to each affected

    family specified.

    KEY ISSUES AND ANALYSIS

    It is not clear whether Parliament has jurisdiction to impose rehabilitation and resettlement requirements on private purchase

    of agricultural land.

    The requirement of a Social Impact Assessment for every acquisition without a minimum thresholdmay delay the

    implementation of certain government programmes.

    Projects involving land acquisition and undertaken by private companies or public private partnerships require the consent o

    80 per cent of the people affected. However, no such consent is required in case of PSUs.

    The market value is based on recent reported transactions. This value is doubled in rural areas to arrive at the compensation

    amount. This method may not lead to an accurate adjustment for the possible underreporting of prices in land transactions.

    The government can temporarily acquire land for a maximum period of three years. There is no provision for rehabilitation

    and resettlement in such cases

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    All the best

    Hope this material helps my NEWSPAPER programme students

    Jai Hind