Madras, Bombay HCs to reflect city names
Two decades after the city of ‘Madras’ became ‘Chennai’ and ‘Bombay’ became ‘Mumbai’, the High Courts in both the cities will finally adopt the names by an act of Parliament during the upcoming monsoon session. The Law Ministry has prepared a Cabinet note on a Bill changing the names of the High Courts.
In addition to the State governments the High Courts have to concur with the name change as it involves technical issues regarding statute books and the fact that the courts, especially the three presidency courts of Madras, Bombay and Calcutta, were established under the Indian High Court Act of 1861.
Concurrence have been received from both the State governments and the two High Courts of Madras and Bombay. The third presidency High Court in Calcutta, however, will have to wait awhile for its own name change to ‘Kolkata High Court’ as the court is yet to give its concurrence.
The matter is not expected to end with the three. With the change in the official spelling of ‘Odisha’ from ‘Orissa’, there have been demands that the State’s High Court too change its name. It still goes by the old spelling.
The government is also waiting for the Andhra Pradesh and Telangana governments to sort out the relocation of the High Court.
Shanghai Cooperation Organisation (SCO)
The Shanghai Cooperation Organisation (SCO) is a Eurasian political, economic, and military organisation which was founded in 2001 in Shanghai by the leaders of China, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. These countries, except for Uzbekistan had been members of the Shanghai Five, founded in 1996; after the inclusion of Uzbekistan in 2001, the members renamed the organisation. On July 10, 2015, the SCO decided to admit India and Pakistan as full members, and they are expected to join by 2016.
DGCA to get more punitive powers
For better enforcement of air safety standards, the Directorate General of Civil Aviation (DGCA) will soon be empowered to penalise airlines and airports for various offences and non-compliance of air regulations. Under the present rules, the DGCA is authorised to either suspend the operations of airlines or airports or take away their licence, but has no powers to impose fines or penalties.
The Civil Aviation Ministry will soon send a proposal to amend the Aircraft Act, 1937, to the Law Ministry, to empower the DGCA to impose fines for violations under the Act.
The violations include operating aircraft without the specified minimum crew, flying without a valid pilot licence or medical fitness, not maintaining records, fraudulent entry in logbooks and not maintaining airports.
PSLV-C34 Successfully Launches 20 Satellites in a Single Flight
In its thirty sixth flight (PSLV-C34), ISRO’s Polar Satellite Launch Vehicle successfully launched the 727.5 kg Cartosat-2 Series Satellite along with 19 co-passenger satellites from Satish Dhawan Space Centre SHAR, Sriharikota. This is the thirty fifth consecutively successful mission of PSLV and the fourteenth in its ‘XL’ configuration. The total weight of all the 20 satellites carried on-board PSLV-C34 was 1288 kg.
After PSLV-C34 lift-off from the Second Launch Pad with the ignition of the first stage, the subsequent important flight events, namely, strap-on ignitions and separations, first stage separation, second stage ignition, heat-shield separation, second stage separation, third stage ignition and separation, fourth stage ignition and cut-off, took place as planned. After a flight of 16 minutes 30 seconds, the satellites achieved a polar Sun Synchronous Orbit of 508 km inclined at an angle of 97.5 degree to the equator (very close to the intended orbit) and in the succeeding 10 minutes, all the 20 satellites successfully separated from the PSLV fourth stage in a predetermined sequence.
After separation, the two solar arrays of Cartosat-2 series satellite were deployed automatically and ISRO’s Telemetry, Tracking and Command Network (ISTRAC) at Bangalore took over the control of the satellite. In the coming days, the satellite will be brought to its final operational configuration following which it will begin to provide remote sensing services using its panchromatic (black and white) and multispectral (colour) cameras.
The imagery sent by the Cartosat-2 series satellite will be useful for cartographic applications, urban and rural applications, coastal land use and regulation, utility management like road network monitoring, water distribution, creation of land use maps, precision study, change detection to bring out geographical and manmade features and various other Land Information System (LIS) and Geographical Information System (GIS) applications.
Of the 19 co-passenger satellites carried by PSLV-C34, two – SATHYABAMASAT weighing 1.5 kg and SWAYAM weighing 1 kg – are University/Academic institute satellites and were built with the involvement of students from Sathyabama University, Chennai and College Of Engineering, Pune, respectively.
The remaining 17 co-passenger satellites were international customer satellites from Canada (2), Germany (1), Indonesia (1) and the United States (13).
The total number of satellites launched by India’s workhorse launch vehicle PSLV has reached 113, of which 39 are Indian and the remaining 74 from abroad.
Textiles get tax sops in output impetus
The Centre announced a Rs. 6,000- crore special package, with tax and production incentives, for the textile and apparel sector to enable domestic firms to compete globally. The package which will be implemented soon aims to help in creating one crore jobs, mostly for women, in the next three years.
The package, approved by the Cabinet, includes several tax and production incentives. The government has also suggested bringing in flexibility in labour laws to increase productivity.
These initiatives are expected to lead to an increase in exports by $ 30 billion and help attract investments worth Rs. 74,000 crore in three years.
China was gradually relinquishing its leadership position in the garment sector due to its rising wages and production shifting to high technology sectors. This was leading to garment sector firms shifting to countries including Bangladesh and Vietnam.
The package would strengthen the Indian textile and apparel sector by improving its cost competitiveness in the global market. Compared with Bangladesh and Vietnam India was the leader in apparel exports between 1995 and 2000. Bangladesh’s apparel exports exceeded that of India in 2003, while Vietnam surpassed India in 2011, Textile Ministry data showed. With policy support, India can again regain its position in the next three years, it said.
Of the Rs. 6,000 crore package, Rs. 5,500 crore is for an additional five per cent duty drawback for garments. In a first- of- its- kind move, a new scheme will be introduced to refund the state levies which were not refunded so far. Drawback at ‘ all industries rate’ would be given for domestic duty paid inputs even when fabrics are imported under ‘ Advance Authorization Scheme,’ according to the statement. The remaining Rs. 500 crore will be for additional incentives under Amended Technology Upgradation Funds Scheme ( ATUFS), where the subsidy provided to garmenting units under the scheme is being increased from 15 per cent to 25 per cent, providing a boost to employment generation.
The package breaks new ground in moving from input- based to outcome- based incentives; a unique feature of the scheme will be to disburse subsidy only after expected jobs have been created. To ensure increased earnings for workers, the package specifies that overtime hours for workers shall not to exceed eight hours per week — in line with International Labour Organisation norms.
Taking note of the seasonal nature of the garment industry, fixed term employment will be introduced for the sector and a fixed term workman will be considered at par with permanent workman in terms of working hours, wages, allowances and other statutory dues. Considering the industry’s seasonal nature, the provision of 240 days under Section 80JJAA of Income Tax Act ( allowing deduction of 30 per cent of additional wages paid to new regular employees for three years where the worker has worked at least for 240 days in a previous year) would be relaxed to 150 days for the garment industry. Also, the government said it will bear the entire employer’s contribution of 12 per cent under the Employees’ Provident Fund Scheme, for new employees of garment industry earning less than Rs. 15,000 per month, for the first three years.
Cabinet approves mega spectrum auction
Paving the way for the largest- ever spectrum auction in the country, the Union Cabinet chaired by Prime Minister Narendra Modi approved the sale of all available spectrum — a move that could potentially fetch the exchequer about Rs. 5.5 lakh crore going by the reserve price.
The auction in which about 2000 MHz of airwaves will be put up for sale is likely to be conducted in September. The government had earned revenues of Rs. 1.1 lakh crore from the auctions held last year.
The Cabinet has, however, decided to refer back the issue of spectrum usage charges ( SUC) to the telecom regular TRAI for its recommendations. The Telecom Commission ( TC) recently cleared a weighted average formula for the SUC, an annual fee payable by telecom operators for using airwaves. For the upcoming auctions, SUC was recommended at 3 per cent of operator’s annual revenue.
This is the first time that the 700 MHz band that is preferred for offering highspeed broadband services will be put on offer at a reserve price of Rs11,485 crore per MHz pan- India. However, the operators had asked the sale to be held back till the device ecosystem was put in place. The cost of delivering mobile services in the 700 MHz band is also approximately 70 per cent cheaper than in the 2100 MHz band ( used for 3G services).
For 2016- 17, the Centre has estimated revenues from communication services at Rs. 98,995 crore, of which Rs. 55,000 crore is expected from the auction of spectrum.
For the 1,800 MHz spectrum — widely used for offering voice services — a reserve price of Rs. 2,873 crore has been fixed. For spectrum in the 900 MHz, 800 MHz, 2100 MHz and 2300 MHz bands, reserve prices of Rs. 3,341 crore, Rs. 5,819 crore, Rs. 3,746 crore and Rs. 817 crore, respectively, have been stipulated. The regulator has recommended that the reserve price for 2500 MHz spectrum, which is also on the offer for the first time, be equal to that of 2300 MHz spectrum.
Companies winning spectrum above 1GHz will need to pay 50 per cent upfront against the 33 per cent earlier. For the remaining spectrum, 25 per cent would be upfront payment. The balance for both categories will be paid in 10 years after a two- year moratorium.
Cabinet extends UDAY scheme deadline
The Cabinet approved an extension in the deadline for implementing the Ujjwal Discom Assurance Yojana ( UDAY) by a year to March 31, 2017.
The UDAY scheme is aimed at bringing ailing power distribution companies ( discoms) to a state of operational efficiency, with state governments taking over up to 75 per cent of their
respective discoms’ debt and issuing sovereign bonds to pay back the lenders. The Cabinet decision extends this provision from the earlier deadline of March 31, 2016.
UDAY is an important component of the effort to realise the mission of 24×7 affordable and environment friendly ‘Power for All’. Power, being a concurrent subject, requires the active participation of the States. Though, UDAY is optional, several States/Union Territories have joined or agreed to join the scheme demonstrating its necessity and appeal. However, some States were unable to join the scheme due to time constraints in completing the processes or inability to take major policy decisions such as joining UDAY due to on-going election processes. Extension of the timeline will enable States to participate in this scheme by allowing adequate time to complete the multi-stakeholder process required for joining and/or issuing Bonds. In addition, Jammu & Kashmir will be able to float further Bonds.
As stated, under UDAY, so far 20 States and Union Territories have given their consent to join of which, 12 States, viz, Rajasthan, Uttar Pradesh, Chhattisgarh, Jharkhand, Punjab, Bihar, Haryana, Gujarat, Uttarakhand, Karnataka, Goa and Jammu & Kashmir have already signed MOUs with the Central Government.
In the year 2015-16, Bonds worth Rs. 99,541 crore were floated by the participating States to clear 50% of the outstanding debt of States and outstanding CPSU dues in Jharkhand and Jammu & Kashmir. Further, DISCOM Bonds worth Rs. 11,524 crore were floated. In the year 2016-17, Bonds worth Rs. 48,391 crore have been floated by Rajasthan, Uttar Pradesh and Punjab.
The turnaround of DISCOMs is made possible through (i) Improving operational efficiencies of DISCOMs, (ii) Reduction in the cost of power, (iii) Reduction in interest cost of DISCOMs through States taking over 75% of the DISCOM debt, as on 30th September, 2015 over two years, and the rest being re-priced through bonds and loans at lower interest rates, (iv) Enforcing financial discipline on DISCOMs through alignment with State finances.
With the Cabinet decision, the States shall take over 75% of DISCOM debt as on 30th September, 2015 by 31st March, 2017 by issuing Bonds. This intervention will lower the interest burden of debt and allow States, which could not avail of the opportunity to join UDAY earlier to put DISCOMs reforms on accelerated path. It is a significant step in realising the vision of 24X7 Power for All.
Nod for Rs. 10,000 cr start- up fund
The Cabinet approved the setting up of a Rs. 10,000 crore fund to support start- ups in becoming full fledged business entities. The fund is expected to generate employment for 18 lakh persons.
The approval will pave the way for setting up “ Fund of Funds for Startups” at the Small Industries Development Bank of India for contributions to various Alternative Investment Funds registered with the Securities and Exchange Board of India, according to an official statement. This is in line with the Start- up India Action Plan of the government unveiled this year .
The Rs. 10,000 crore- corpus will be built up over the 14th and 15th Finance Commission cycles subject to progress of the scheme and availability of funds, it said. Already Rs. 500 crore has been provided.