Ban, Sushma discuss peace-keeping

External Affairs Minister Sushma Swaraj held discussions with the visiting United Nations Secretary General Ban Ki-moon here on Monday, focussing on the role and mandate of troop-contributing nations for peace-keeping operations and increasing their say in decision-making.

“This was a discussion which covered a lot of ground, helped us understand the U.N.’s perspective on a lot of things and it indicates our engagement on the global stage on a variety of issues,” Syed Akbaruddin, External Affairs Ministry spokesperson, told the media.

The U.N. Secretary General said that a committee had been set up to look into all aspects of this issue and a report would be submitted in the next few months, Mr. Akbaruddin said.

India has been one of the largest contributors to U.N. peacekeeping missions. Currently there are more than 8,000 Indian soldiers serving under the U.N. flag in ten of its 16 peacekeeping missions.

Mr. Ban Ki-moon raised the issue of ‘air component’ in peacekeeping operations. India had earlier deployed helicopters in Congo, which it later withdrew in view of domestic requirements.

The second issue discussed was the forthcoming summit on climate change in Paris at the year end. “The Secretary General outlined that it was a priority for him and that all member-states focus on this and try to get an agreement as the talks have gone on for too long,” said Mr. Akbaruddin.

On her part, Ms. Swaraj explained the measures taken by India in terms of our own commitments to ensure that our development is sustainable.

India has increased its renewable energy target five fold from 20,000 MW to 100,000 MW by 2022. Ms. Swaraj also emphasised on improving hydropower generation, another low carbon fuel, along with Bhutan and Nepal and other measures like Clean Ganga project.

There was also a discussion on U.N. Security Council reforms. India has been campaigning for reform of the Security Council to reflect the realities of the modern world.

Terrorism as a growing global concern too figured in the discussions, Mr. Akbaruddin added.

Source - The Hindu

Movement on n-liability law talks indicated

The Hindu reported earlier this month on the nuclear contact group talks between India and the U.S. held to discuss two possible solutions to the nuclear liability law challenge that had held up nuclear plants due to be set up by U.S. companies Hitachi and Westinghouse in Gujarat.

The proposals involve a $242-million general insurance fund for the fallout of any nuclear accident, and the other involved clarifying Section 46 of the liability law, which now doesn’t differentiate between the civil and criminal liability of the suppliers. However, the government will have its task cut out if it intends to make any change to the law itself, as it is likely to be opposed in Parliament.

Finance Minister Arun Jaitley, who had helped with drafting the contentious clauses of the Bill when he was Leader of the Opposition (in the Rajya Sabha), admitted to the difficulties in implementing the law, saying “both the previous [UPA] government and the Opposition share the blame for that equally.”

Senior officials in both New Delhi and Washington have cautioned against any “optimism” over a breakthrough; however, Mr. Kerry’s remarks indicate that there has been some movement.

On climate change issues, Mr. Kerry said the U.S. “is committed to working with India to reach a landmark climate change agreement in Paris [at the climate change conference] at the end of this year.” He also spoke about an agreement on renewable energy that would “help reach 24/7 power to India’s poorest people.”

Source- The Hindu

Project plan by month-end: Naidu

Union Minister for Urban Development M. Venkaiah Naidu said here on Monday that the project plan for the Centre’s proposed 100 smart cities would be ready by January end and the Union budget would make provisions for a detailed project report (DPR) and provide viability gap funding for interested investors. Public-private partnership was the only funding model for the project.

“We will be coming out with the final touches of the document by the month-end. I am planning to call a meeting of all secretaries of Urban Development of States to have a consultation. After that I will be going to Parliament and the smart city plan will be launched. Smart cities can be built only through PPP model, because it requires lakhs of crores of rupees. The government alone cannot invest in it,” Mr. Naidu told journalists on the sidelines of a seminar on smart cities at the Vibrant Gujarat Summit 2015.

Identification of smart cities would be done after the completion of the consultation process with the State governments and urban local bodies.

The government had given a timeline of five to 10 years for full implementation of the smart city initiative.

Mr. Naidu called for the Opposition’s support on ordinances related to coal, insurance and land acquisition.

He said: “There is no politics involved in passing the ordinances. Many consultations have taken place. The Congress got the Insurance Bill. We wanted some changes to it. Now it is stuck at the Rajya Sabha. We got the ordinances as they are important for investment. The land acquisition ordinance is pro-farmer and in the interest of the country. Hope the Opposition too thinks seriously about them and supports us when the Parliament session begins.”

“There is no problem in opposing the ordinance, but the Opposition should let Parliament function. Debate, discuss, decide but in the end dispose the Bill. I hope Opposition understands the mandate of the people. We brought the ordinances keeping in mind the need for development and there are a number of precedents since the time of Jawaharlal Nehru and Indira Gandhi. There were instances where ordinances were issued. We have issued ordinances for a people’s cause,” Mr. Naidu said.

Source - The Hindu

Kerry will have to walk a tightrope in Pakistan

U.S. Secretary of State John Kerry will be walking a tightrope on terrorism as he begins the U.S.-Pakistan strategic dialogue in Islamabad, telling officials to crack down on groups like the Lashkar-e-Taiba, even as he deals with the unhappiness over the delay in funding promised to the country.

Mr. Kerry, who landed in Pakistan after attending the Vibrant Gujarat summit in Ahmedabad, is likely to discuss some of India’s concerns, expressed by Prime Minister Narendra Modi, over anti-India terror groups that continue to operate in Pakistan. Speaking to reporters in Gandhinagar on Monday, Mr. Kerry said the U.S. was “working to strengthen” India’s counter-terrorism efforts.

Last week, the government reacted sharply whenThe Hindu had reported on the U.S. commitment of $532 million in civilian aid under the Kerry Lugar Bill, and reports of the U.S. certifying Pakistani action against groups, including the Lashkar-e-Taiba and the Jaish-e-Mohammad.

The State Department denied that the U.S. had notified Congress for the aid, but added that the aid could be disbursed through “additional funding.” As a result, Pakistani newspapers have criticised India for stalling the funds, adding to the already high tensions between the two countries over firing across the Line of Control.

Officials in Islamabad had said Pakistan Prime Minister Nawaz Sharif would bring up what they called “India’s aggression” at a dinner on Monday.

Pakistan’s National Security Adviser Sartaj Aziz criticised Mr. Modi in an interview to Dawn News , saying: “India’s stance has been non-cooperative since the formation of the Modi government.”

He also accused India of “carrying out attacks” on Pakistan from Afghan soil, but gave no proof or further details to support the allegation. Ministry of External Affairs spokesperson Syed Akbaruddin reacted sharply to the comments, saying: “It should be clear the challenge that safe havens pose to peace and security in the region.”

Meanwhile, Mr. Kerry has his task cut out, discussing the strategic relationship with Pakistan’s leaders, including Army chief General Raheel Sharif, on issues like security in Afghanistan after the U.S. pullout and future civilian and military aid requirements for Pakistan, even as he attempts to send a stern message on action against terror groups based there.

“Part of the Secretary’s core message will be to ensure that actions are met with a real and sustained effort to constrain the ability of the Haqqani network, the Lashkar-e-Taiba, the Afghan Taliban and other militants who pose a threat to regional stability and to direct U.S. interests,” a senior U.S. official was quoted by The New York Times as saying.

Earlier this week, the newspaper also questioned U.S. foreign policy on Pakistan over the report about $532 million in aid, in an editorial titled, ‘Is Pakistan worth America’s investment?’

'EU should curb mercury emissions from cremations'

Increased cremation, as shortage of land makes burial expensive, has coincided with a rise in emissions of the toxic metal from fillings in teeth.

Environment campaigners are calling for curbs on mercury emissions from human cremations as part of pollution controls that EU authorities will debate this month.

Increased cremation, as shortage of land makes burial expensive, has coincided with a rise in emissions of the toxic metal from fillings in teeth. An average cremation releases 2 to 4 grammes of mercury, data compiled by U.S. researchers shows.

Mercury is associated with mental development problems. After entering the air and then falling in rain it becomes concentrated in fish that, if eaten during pregnancy, can cause harm to unborn children.

Some 2,00,000 babies are born in the EU annually with mercury levels harmful to their development, public health researchers have found.

The European Environment Bureau, which is coordinating NGOs in Brussels in an increasingly polarised debate on air quality, says crematoria should be included in new standards on incinerating waste. One option would be removing teeth from corpses before cremation, although the campaigners acknowledge that may raise ethical issues.

"What matters is to deal with protecting the living environment from extremely hazardous pollutants," Christian Schaible, a senior EEB policy official, said.

Of the 28 EU states, so far only Germany has a mercury emissions limit, although the EU has regulated large coal power plants - the biggest source of mercury pollution. Sweden and Denmark have banned mercury in dental fillings.

Draft EU air quality legislation from 2013 included national ceilings for pollutants and emissions from medium-sized combustion plants (MCPs), theoretically including crematoria.

The new European Commission, the EU executive, last year proposed abandoning national targets and debate on MCPs, at the request of member states, excludes crematoria.

Keen to counter Euroscepticism, particularly in Britain, which has objected to national targets on several issues, the Commission says it is preventing over-regulation.

The EEB will take part in debate on the waste issue with representatives of the Commission, EU nations and industry between January 19 and 22.

Separately, the European Parliament votes on Thursday on an objection to the Commission's plan to scrap some environmental proposals, including on waste and air quality.

Even before the Commission's new plan, the NGOs say the national ceilings were inadequate and did not deal with mercury.

Data from the Cremation Society of Great Britain show that in Europe in 2012, the highest rate of cremations was in non-EU Switzerland, at 85 per cent, followed by Denmark with 77 per cent and Britain with 73 per cent.

Source - The Hindu

[Ed] Policy distorts gender equity

In India, the right to vote is only a statutory right, but the act of voting is a constitutionally protected ‘freedom of expression’ under Article 19, as a fundamental right (PUCL, 2013).
The Supreme Court recently refused to hear a petition challenging the Rajasthan Panchayati Raj (Second Amendment) Ordinance, 2014 on procedural grounds, sending it back to the High Court. The controversial ordinance introduces a set of educational qualifications of secondary education in order to be able to contest panchayat elections. For the post of sarpanch, Class VIII is the minimum qualification, while posts in the zilla parishad require a Class X pass. The petition is currently being heard by the Rajasthan High Court. The ordinance was challenged by several non-governmental organisations and political parties including the Congress. The BJP, which had inexplicably taken the ordinance route in the State, welcomed the decision of the Supreme Court and hailed it as a “victory of truth”. The rationale of the law is to encourage education and literacy. The problem is not with the ends, but with the means. Although the ordinance may be constitutionally valid as the facts are analogous to the reasoning of the Supreme Court in Javed (2003), it is at the level of policy that the law is weak. In Javed, the Supreme Court upheld the constitutionality of a provision that stipulated that no person who has more than two children could be elected as the sarpanch or panch of a panchayat. A similar reasoning may be applied in the case of this ordinance as well. The Javed judgment was criticised for its reasoning as also its consequences, such as instances where men gave their daughters up for adoption to be able to contest elections. Ironically, it is not difficult for those who are influential to obtain false Class X certificates either.

In India, the right to vote is only a statutory right, but the act of voting is a constitutionally protected ‘freedom of expression’ under Article 19, as a fundamental right (PUCL, 2013). The freedom to vote is inseparable from the freedom to contest in elections, and hence a policy of encouraging education cannot arguably prevail over fundamental rights. The law is a major setback to the constitutional mandate of ensuring gender equality in panchayati governance where the Rajasthan government has provided for 50 per cent reservation for women. In rural areas, the literacy rate of women is only 45.8 per cent — in tribal areas it is 25.22 per cent — as opposed to the corresponding male literacy rate of 76.16 per cent. The law therefore excludes the majority of potential women contestants. The educational qualification norms, on top of the existing massive inequality in literacy rates, will reduce women’s participation in politics. Lastly, several grassroots activists argue that panchayat governance requires ethical values and an understanding of local issues gained from experience, more than Class X certificates.

Source - The Hindu

[Ed] [Eco] Bankers’ Retreat: a good beginning

A two-day Gyan Sangam or Bankers’ Retreat was arranged by the Finance Ministry in Pune recently. Apart from top executives from public sector banks (PSBs), insurance companies and financial institutions, senior Finance Ministry officials attended the meeting. Finance Minister Arun Jaitley, Minster of State Jayant Sinha and Reserve Bank of India Governor Raghuram Rajan participated in the meeting, whose high-point was the address by the Prime Minister, in which he categorically promised bankers that there would be no government interference in the functioning of banks. The government has quickly backed the PM’s assurance by sending out letters to banks on those lines.

The interaction of ministry officials, RBI Governor and heads of PSBs in an informal setting is a novel idea that is to be welcomed. As a management tool, a meeting away from the pressures of day-to-day work is meant to unfreeze the established behaviour patterns and enable the divergent shareholders — the government, owner, regulators and the banks themselves — to open a healthy dialogue. Reports on the meet are scarce, but whatever information that is available suggests a healthy awareness on the part of bankers and government officials alike of the burning problems, which banks and policymakers alike face.

These can be summed up in three words — recapitalisation, consolidation and professionalisation of banks’ boards and their management. The government, as the majority stakeholder, has an overarching role in the functioning of PSBs, which, despite the entry of many new generation private banks since the 1990s, continue to have the largest share of commercial banking business in the country.

The crux of the problem — and this, in fact, ought to have been the underlying theme at the retreat — is for the government to draw a fine line between exercising the rights of majority shareholders for the common good and interfering in the business of banks, which is mutually ruinous. The question then arises as to whether it is possible at all for the government to stop interfering while remaining a majority shareholder.

Benefits of govt. ownership
In the broadest sense, a majority government ownership by itself is not such a bad thing. On the contrary, it confers a number of benefits to the banks. A government stake, even a minority one, lends heft to a bank whose balance sheet has been weakened by circumstances. A majority stake can be a saviour. This has been amply proved in India — in the 1990s, Indian Bank, whose balance sheet was devastated through some reckless lending, retained its depositors’ confidence mainly because it was owned by the government. The Unit Trust of India’s flagship scheme, US 64, could be wound down without facing a run because of government ownership. To big banks and institutions in the West, the State has acted as saviours during the more recent financial crisis, lending money and more importantly assuring all stakeholders of unlimited support. Not surprisingly, some of them continue to be technically government-owned till today.

The key issue before the PSBs is, therefore, to draw on the strengths of existing government stake, while simultaneously striving moving towards a more commercial orientation. Several approaches have been contemplated over the years. Outright privatisation is simply ruled out, although several trade unions, among others, see in the current reform initiatives a sinister move towards backdoor induction of private sector. Yet, banks require a humongous amount of money to stay capitalised — some Rs.2.4 lakh crore — and meet the international regulatory norms conforming to Basel III requirements. The government, which has been making budgetary allocations, will not be in a position to do so. So, the challenge is to find non-government sources, which again means demonstrating a more commercial orientation. Consolidation in the banking industry may happen but over a long period. At the recent retreat, this idea has not found many takers among PSBs. Individual banks, therefore, have to spruce up their governance to stay in the race.

Governance, the key
It is in such a context that the report of the P. J. Nayak Committee on governance in banks was discussed. The report has a number of useful suggestions relating to the composition of bank boards, appointment of chief executives and their tenure. PSBs are subject to dual regulation — from the Ministry and the RBI. By far the most discussed proposal is to have a separate holding company (Bank Investment Company or BIC) in which the government’s shares in these banks will be vested. The holding company will monitor the performance of PSBs, make suggestions to improve governance and act as a buffer between them and the government and help in raising additional capital. At the Pune retreat, PSB heads had reportedly agreed to prepare an action plan to implement some of the key proposals of the Nayak panel. The objective is to confer greater autonomy for the PSBs to enable them to function on commercial lines. Despite the good intentions, it is unlikely that some or all these recommendations will be implemented soon. Successive governments, including finance ministers, have been aware of the malaise that afflicts the public sector and have, in fact, strongly argued for removing the constraints, for instance, decision making by banks. Yet, no appreciable change has taken place over the years. It is naive to think that the Gyan Sangam will spur change anymore than what finance ministers, past and present, have been able to do. Nevertheless, it ought to be viewed as a good beginning.

Source - The Hindu