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APRIL 2016 VOL. 02 ISSUE 07 `60 RNI NO: UPENG/2014/62662 ISSN 2455-0426 PR NO: UP/GBD-212/2015-17 Date of Publishing 04-04-2016 Date of Posting 07-04-2016

Cooperative Banks: The Road Ahead

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4 I April 2016

Indian cooperative banks: The road ahead

India has been a capital starved country and in hunt for capital, small entrepreneurs, agriculturists and people with no collateral, artisans, petty traders, women and rural folks, invariably lose out. Cooperative bank were conceptualized to cater to these very segments. The segment was supposed to serve the largest section of people who are untouched by commercial banks as these banks canâ&#x20AC;&#x2122;t venture to the remotest corners of the country and remain viable there. In short therefore, cooperative banks were envisioned as the original vehicle for financial inclusion. They were expected to encourage saving at the grass root level, and make credit available to those unserved by traditional banks. Because of being local in nature, they were also supposed to know the local business environment better and thus assist in economic development of the community. However, the co-operative banking sector stands at a crossroads today. On the one hand, they have grown tremendously, albeit in not completely desired fashion, have developed substantial deposit and credit base, and are, as a group, a strong force in about half a dozen states; but on the other hand, as a class, co-oeprative banks are structurally weak. www.governancetoday.co.in

INDIAN INVESTORS IN THE UNITED STATES ARE TREATED ON AN EQUAL BASIS AS AMERICAN INVESTORS John McCaslin Minister Counselor for Commercial Affairs, U.S. Embassy, New Delhi

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MANAGING ASSET QUALITY THE ACHILLES’ HEEL BRACING FOR THE IMPACT TIME FOR BIG-BANG AGRICULTURAL REFORMS PERENNIAL PENDENCY JUSTICE ELUDES MARITAL RAPE VICTIMS TOWARDS A NEW EDUCATED, INFORMED AND STRONG INDIA BRIMMING WITH HOPE STILL A SERIOUS CONCERN IVF IS HERE TO STAY: Dr ANURADHA KAPUR DEFYING THE STEREOTYPES

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Editorial

Make co-operative banking sector strong again

ahatma Gandhi once said: ‘Suppose I have come by a fair amount of wealth – either by way of legacy, or by means of trade and industry – I must know that all that wealth does not belong to me; what belongs to me is the right to an honorable livelihood, no better than that enjoyed by millions of others. The rest of my wealth belongs to the community and must be used for the welfare of the community.’ The statement captures the philosophy of co-operative movement in perhaps the best possible manner. What it tries to convey is that the wealth should be available for social welfare. This is also the basic motto of the co-operative movement in India which started to use money available at the bottom of pyramid, for the maximum upliftment of the people at the bottom of the pyramid. This was also the basic expectation from co-operative banks which were brought into existence to serve the sections of population which were not covered by the traditional banks. Providing finance to the artisans, carpet weavers, handloom operators, cattle raisers etc. is never on the radar of traditional banks which instead feel comfortable to lend to industries and big businessmen. Co-operative banks were to fill this gap. To a large extent, these banks did their job well. They not only offered loans to lowest ring of entrepreneurs, but also brought the savings of many millions of smallest savers in the productive use by bringing those under banking umbrella who had never thought of entering a bank building. In many states like Maharashta, Gujarat, Andhra Pradesh and Karnataka, co-operative banks became a big hit and an important part of economic system. However, a large majority of co-operative banks in the country also show a disturbing picture, a picture of inefficiency, shady operations, politically linked loans, and worst of all, of hopeless corporate governance. Boards of directors are mere proxies of owners, accountability of management is nonidentifiable or definable, and landing decisions are suspect. It is in this environment that RBI had to intervene by freezing issuance of new co-operative bank licenses. As experience of Madhavpura Mercantile Co-operative Bank showed, collapse of a big co-operative bank can lead to systemic problems. It is a no brainer, therefore, that the ways and means of co-operative banks as a group needs an overhaul. Malegam Committee made some very sound suggestions, including making the CEO accountable to RBI. The future looks exciting for co-operative banking sector, though. Not only competition is going to increase, thanks to the emergence of new entities like Small Finance Banks, but also because the business avenues of co-operative banks have been made diverse. RBI has allowed them to undertake lots of fee based activities which will allow them to diversify their revenue base. The challenge for the sector is to become internally strong. Co-operative banks are perhaps the central pillar to achieve financial inclusion and they must be made strong to fulfill that mandate. Failure is not an option, either for these banks, or for the country. Best regards

Ajit Sinha Editor-in-Chief www.governancetoday.co.in

April 2016 I 7

THUS THEY SPOKE The money looted from the banks does not belong to the banks but to the poor people of the country and I will ensure that those who looted this money return each and every paise... they have looted the country. Narendra Modi Prime Minister of India If you allow CPM to return to power, violence will again hit Jangalmahal (former Maoist stronghold in Purulia, Bankura and West Midnapore districts). The area had hit the headlines for bloodshed during the Left Front rule. Mamata Banerjee Chief Minister, West Bengal We are saying that Pathankot terror attack was Pakistansponsored. If it was Pakistan-sponsored attack, how can ISI probe against itself? India is the major victim of the terror attacks and masterminds, who are actual players, are sitting in Pakistan. Arvind Kejriwal Chief Minister, Delhi ISIS is very peculiar. I stretched my hand out to have a dialogue, but when these people think no-one else has a right to exist, talks alone will not work. Sri Sri Ravi Shankar Spiritual Leader This is a no debate. The rich and the famous are talking of intolerance. If you ask a man on the street, they wonâ&#x20AC;&#x2122;t talk about intolerance. All they want is food two times a dayâ&#x20AC;Ś Those with champagne in a glass are only talking about it. Are you living in India or America? Anupam Kher Bollywood Actor At the moment he (Virat Kohli) is got to be the best limitedovers batsman in the world. There is no question about it. There is not the slightest doubt about it because he is beyond phenomenal. He is something else. Sunil Gavaskar Former Cricketer 8 I April 2016

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GOVERNANCE WATCH

Railways, ISRO sign MoU to provide web-enabled services

Defence policy to encourage ‘Make in India’

The Indian Railways has collaborated with Indian Space Research Organization (ISRO) in order to make use of space technology tools to bring webenabled rail user-centric services, remote sensing and graphic information system (GIS) based applications. The MoU will enable use of space technology tools in providing passenger information for all trains, indicating next station/stoppage, real-time train-tracking, survey of new rail route alignments particularly in hilly and difficult terrains. On signing MoU with ISRO, Railway Minister Suresh Prabhu said, “it is not the marriage of convenience but the marriage of necessity.” He added, “We need to use technology for solving dayto-day problems. Lot of changes have taken place over a period of time. Our challenge is not just to use technology but how to constantly keep update with the technology. Railways have to keep modernizing.”

Intended primarily to improve indigenous procurement, the defence ministry recently unveiled the new Defence Procurement Policy that would lay emphasis on Make in India, the government’s flagship program. The DPP-2016 was made public at the latest edition of DefExpo in Goa, which saw the participation of 1,055 companies from 47 countries and 224 delegations from 48 countries. Speaking at the inauguration of the event, an exhibition of land and naval systems, Defence Minister Manohar Parrikar said the new policy had taken care of some of the issues raised by foreign companies and in another two or three months, the ministry would take care of a few more issues that were pending. While the FDI limit remains 49 per cent through the automatic route, a higher percentage can be considered on special cases, he said. The DPP recognises the role of small and medium enterprises in the sector, and a further boost will be given to it.

Google asked to submit fresh proposal for Loon Project Government has asked Google to submit fresh proposal for testing its balloon-based Internet technology for the Loon Project following objections to the use of spectrum band it had proposed earlier. In a written reply to the Lok Sabha, Telecom Minister Ravi Shankar Prasad said, “The matter was discussed with all stakeholders and it was concluded that frequency band 700-900 Mhz to be used in the pilot test of Project Loon is being used by cellular operators and if the pilot is carried out it will lead to interference with cellular transmissions.” The project is said to have the potential to replace mobile towers as it can directly transmit signals to 4G mobile phones. As per Google, each balloon can provide connectivity to a ground area of about 40 km in diameter using a wireless communication technology called LTE, or 4G. www.governancetoday.co.in

April 2016 I 9

GOVERNANCE WATCH

India updating National Policy for Women’s Empowerment Minister for Women and Child Development Maneka Gandhi has stated that India is updating the National Policy for Women to establish a solid foundation for accelerating its commitment to women’s empowerment. “Ensuring gender equality, promoting women’s empowerment and combating discrimination and violence against women are integral to our national pursuit of forging inclusive society and development,” she said during a roundtable session at the 60th Session of the Commission on the Status of Women (CSW). The Union Minister added, “We have adopted both enabling legislative and policy framework for advancement of women and undertaken awareness generation and sensitization programmes to fight social prejudices and stereotypes.”

Health Ministry bans 344 drugs The Health Ministry has banned 344 fixed drug combinations effective immediately. The banned list includes several common cough syrup solutions, analgesics and antibiotic combinations. The ban follows recommendations of an expert committee formed to examine the efficacy of these drug combinations. The list of banned drugs includes Nimesulide, which had been a cause of concern for long for health experts for its continued use in India despite being banned in most of the developed nations. Fixed drug combinations have entered the market as companies in their quest for newer products — and often to beat price control — mix and match ingredients into a single molecule to market them as newer remedies. Many of these which have an antibiotic as one of the ingredients are sold over the counter, thus adding to the menace of drug resistance.

Railways plans to attract over Rs 8 lakh crore investment Indian railways is aiming for more than Rs 8 lakh crore investment in the sector over the next five years. The sector has come up with different models to bring in private participation for capacity augmentation of the state-run transporter. According to Railways estimate, an investment of Rs 8,56,020 crore (approximately 135 billion US dollars) over five years will augment infrastructure capacity and modernization. As per the statement by senior Railway Ministry official, Non-Government Railway (NGR), Joint Venture (JV), Build Operate and Transfer (BOT), capacity augmentation with funding provided by customers and capacity augmentation through annuity are five models to attract private investment.

10 I April 2016

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GOVERNANCE WATCH

Automotive Mission Plan 2016-26 soon The government has announced that it will soon launch Automotive Mission Plan (AMP) 2016-26. “In the AMP, which will be launched shortly, it is aimed that the Indian automotive industry will be among the top three in the world in engineering, manufacturing and export of vehicles, and auto components”, the Department of Heavy Industry said. The AMP 2016-26, which has been finalized in consultation with various stakeholders, envisages creation of additional 50 million jobs. In the first AMP 2006-16, the auto industry had achieved a target of incremental job creation of 25 million along with attracting investments topping the target of Rs 1.55 lakh crore from global and local OEMs as well as component makers. The government and automobile industry have set an ambitious target of increasing the value of output of the sector to up to Rs 18.89 lakh crore under the AMP 2016-26.

Rs. 6000 crore profit likely from 12 major ports, 3 firms: Nitin Gadkari Union Minister Nitin Gadkari has stated that 12 major ports and three flagship bodies are poised to register Rs. 6000 crore cumulative profit. Gadkari, the Minister of Road, Transport, Highways and Shipping said “For the first time, all our 12 major ports and three flagship organisations – Cochin Shipyard, Shipping Corporation of India and Dredging Corporation of India are poised for over Rs 6,000 crore profit this fiscal,”. India has 12 major ports — Kandla, Mumbai, JNPT, Marmugao, New Mangalore, Cochin, Chennai, Ennore, V O Chidambarnar, Visakhapatnam, Paradip and Kolkata (including Haldia) which handle approximately 61 per cent of the country’s total cargo traffic. The 12 ports recorded an operating profit of Rs 3,456.95 crore in the current fiscal up to January and several steps are being taken to modernize them. For next fiscal, cargo handling target for 12 ports has been set at 644.35 million tonne per annum (MTPA), with 105 MTPA expected at Kandla Port Trust.

Germany to develop Kochi, Coimbatore, Bhubaneswar as smart cities After Nottingham Germany has confirmed its role in helping India in its ambitious smart city project by developing Kochi, Bhubaneswar and Coimbatore as smart cities. “Germany would contribute to India’s smart city programme and will help develop the cities of Kochi (Kerala), Bhubaneswar (Odisha) and Coimbatore (Tamil Nadu) as smart cities,” Gunther Adler, State Secretary in Germany’s Ministry for Environment, Nature Conservation, Building and Nuclear Safety stated. The three cities are among the 20 cities which were selected for first phase of the project in January this year. Germany had earlier set up a six-member joint committee with India to identify the cities which it could develop as smart cities. German Ambassador to India Martin Ney said Germany is an ideal partner in India’s mission to create smarter cities as the country is “very strong at smart planning for urban centres”. www.governancetoday.co.in

April 2016 I 11

GOVERNANCE WATCH

Smart Class introduced in Jharkhand government schools

Medical Council likely to be overhauled

With the aim to improve the quality of education, Smart Class’ have marked their entry in government schools. In the first phase, “Smart Class” (teaching through modern communication) was introduced in 203 Kasturba Gandhi Residential Girls Schools and there are plans to introduce the same in other schools in a phased manner, Jharkhand education minister Neera Yadav stated in a written reply. Yadav made the statement in a reply to question whether the government has any plan to bring the standard of education between government and private schools on par. The minister appealed all MLAs to adopt one government school each. She added the standard of education in government schools was improving under the leadership of Chief Minister Raghubar Das.

The Centre has begun work on a major overhaul of the Medical Council of India as it looks to create more medical colleges and produce more doctors to cater to growing healthcare needs. The government has set up a three-member committee to prepare a blueprint to revamp the current setup. The high-powered committee has Niti Aayog vice-chairman Arvind Panagariya, PM’s additional principal secretary P K Mishra and Niti Aayog chief executive officer Amitabh Kant as members. The development came after the parliamentary standing committee on health and family welfare too had called for a complete overhaul of the medical council as it has repeatedly failed in its mandate as a regulator of medical education and profession. In its report presented in Parliament recently, the panel has recommended that the Act under which the council was established be scrapped and a new legislation be brought in Parliament “at the earliest”.

Sex ratio dips in Gujarat Recently tabled Socio-Economic Review 2015-16 has revealed that the sex ratio in Gujarat has come down to 919 in 2011 from 920 in 2001. With 919 females for every 1000 males, Gujarat ranked 22nd among 28 states as per the 2011 Census. However, rural areas fared comparatively well in improving the ratio than urban centers. The Review stated, “in rural areas of the state, it has increased by 4 points from 945 in 2001 to 949 in 2011; while in urban areas it remained at 880 in both the years.” Citing Census 2011, the Review stated that tribal district of Tapi is at the first position with a sex ratio of 1007 followed by Dang (1006) and Dahod (990), whereas Surat is at the last position with just 787 preceded by Ahmedabad with 904. The Review mentioned that migration from within and outside the state to urban areas was the key reason for the decline in sex ratio there. 12 I April 2016

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GOVERNANCE WATCH

India signs USD 300 mn pact with World Bank for education India has signed a loan agreement with World Bank for USD 300 million for Madhya Pradesh Higher Education Quality Improvement Project. As per finance ministry statement, the agreement was signed between Department of Economic Affairs Joint Secretary Raj Kumar on behalf of India and World Bank’s Country Director Onno Ruhl on behalf of World Bank. The project aims to improve student outcomes especially of disadvantaged groups in selected Higher Education Institutions (HEIs) and to increase the effectiveness of the Higher Education System in Madhya Pradesh. The project has three components that include grants support to higher education institutions, state level initiatives and improving system management.

TRAI to enforce call drop regulation: RS Prasad Telecom Minister Ravi Shankar Prasad has said that TRAI (Telecom Regulatory Authority of India) will enforce its order on call drops, which makes it mandatory for telcos to compensate customers for failed. On High Court upholding the call drop decision, Prasad said, “Lets be very clear about one thing. I have not examined the judgement but the penalty incentive and disincentive regulations of TRAI has been upheld by the court, so TRAI will enforce it.” The Minister stated call quality has been improving but operators need to further enhance the service quality. He further said whatever policy initiative was required from government side, has already been taken, now the operators need to deliver. TRAI has said that maximum outgo under the rule in a year would be around Rs 800 crore if networks are not improved.

Delhi Govt increases reimbursement to private schools for EWS admissions The Delhi Government has decided to increase the reimbursement amount given to private schools for admissions under the economically weaker section (EWS) category. All the private schools in the city will now get Rs 300 more per child for EWS admission from the upcoming academic session. The decision to increase the amount comes after deputy education minister Manish Sisodia received complaints from various private schools against “minimal amount” reimbursed by the government to them for allowing students under EWS category. The reimbursement amount has now been raised to Rs 1598 from Rs 1290.The government has allotted over 26,600 seats through computerized draws under the EWS category, an experiment that has been introduced by the Delhi government for the first time.

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April 2016 I 13

GLOBAL WATCH

US to not recognize South China Sea exclusion zone Terming the attempt of China to impose an exclusion zone in the South China Sea, the US has informed China that it will not recognize the exclusion zone. U.S. Deputy Secretary of Defense Robert Work said that the United States would not recognize such an exclusion zone in the South China Sea, just as it did not recognize the one China established in the East China Sea. Officials have expressed concern that an international court ruling expected in the coming weeks on a case brought by the Philippines against China over its South China Sea claims could prompt Beijing to declare an air defense identification zone, or ADIZ, in the region. China claims most of the South China Sea, through which more than $5 trillion in global trade annually passes. The U.S. refusal assumed importance as it came immediately before Chinese President Xi Jinping’s visit to Washington for a nuclear security summit.

G20 to inform each other before devaluing currencies World’s 20 biggest economies have agreed to inform each other in advance if they take any measure that could lead to devaluations of their currencies. The move is an addition to the traditional declaration in G20 communiques that countries will refrain from competitive devaluations. This was informed by the chairman of euro zone finance ministers Jeroen Dijsselbloem, after a meeting of G20 finance ministers and central bankers in Shanghai. The decision was prompted by concerns about the possibility of competitive devaluations in Japan or China. He said that in cases where devaluation is a consequence of monetary policy “motivated by real macroeconomic domestic reasons,” then members must make sure to inform each other in advance to avoid surprises. He further said information exchanges would take place in the G20 context and through the International Monetary Fund when it was useful. According to him, the key thing was to sure that there were no surprises.

Myanmar lifts Rakhine emergency Thein Sein before the end of hisd five year term as the President of Myanmar lifted the state of emergency in Rakhine. The emergency was imposed in 2012 as a result of communal violence in the western province. Rakhine which borders Bangladesh has a long history of sectarian violence between Myanmar’s majority Burman Buddhist community and minority Rohinga Muslims. Dozens of people died and about 140,000 people, mainly from the Muslim Rohingya ethnic minority, were forced to flee their homes. Since then, most of them have been forced to live in refugee camps and denied basic rights. The Rohingya are denied full citizenship as they are seen as illegal migrants from neighbouring Bangladesh.The United Nations refers to them as a “persecuted religious and linguistic minority”. Last year, thousands of Rohingya were found stranded on boats in the Andaman Sea trying to leave Rakhine for Malaysia which brought the issue of their marginalization to the world’s attention. 14 I April 2016

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New flu vaccine to protect against multiple strains of H1N1 Researchers have developed a new vaccine that protects against multiple strains of both seasonal and pandemic H1N1 influenza in mouse models. The findings were presented at the World Vaccine Congress US 2016 in Washington, D.C. In 2009, the H1N1 influenza virus had caused a worldwide endemic. Earlier called swine flu as the virus was similar to that found in pigs, it has now become a seasonal form of influenza. The researchers created nine prototype synthetic compound vaccines using a technique called Computationally Optimised Broadly Reactive Antigen, or COBRA. For the experiment, genetic sequences from multiple influenza virus strains were used. The COBRA vaccines were designed to recognize H1N1 viruses isolated within the last 100 years, but many of the experimental vaccines produced immunity against influenza strains not included in the design. This indicated that scientists may be able to produce a vaccine that protects against strains that have yet to be discovered.

China revamps military command structure

In a major move, China has revamped its military command structure. Chinese President Xi Jinping recently reorganised four army headquarters by replacing them with 15 new agencies, under the Central Military Commission (CMC) headed by him, tightening his control over the world’s largest force. This will deploy military assets on land, air and sea to “win wars”. The reform includes formation of five more divisions namely: The Eastern, Western, Northern, Southern and Central theatre commands which will focus on joint combat. The CMC will exercise overall political, supervisory and administrative control over the armed forces. The overhaul is aimed at moving away from an armycentric system towards a Western-style joint command in which the army, navy and air force are equally represented. This is also seen as a measure to counter the United States’ Pivot to Asia doctrine where the presence of US forces in the Asia Pacific is threatening Chinese supremacy in the region.

International Criminal Court recognizes rape as war crime In a historic judgment, the International Criminal Court added rape to war crimes while convicting the former Vice-President of Congo, Jean-Pierre Bemba Gombo with respect to a militia intervention in the neighboring Central African Republic. It was the first time the court has convicted anyone of sexual violence since it was launched in 2002. The judgment has made it clear that use of rape as a weapon of war will not be tolerated. This has given rise to the possibility of future prosecutions that include accusations of rape and related abuses as elements of war. The ruling also marks the first time the court has convicted a suspect based on his role as a military commander. According to the ruling, Bemba knowingly permitted his troops to commit horrific acts including sexual abuse — against both women and men — after dispatching them to help the Central African Republic’s president, Ange-Félix Patassé, quash a coup. www.governancetoday.co.in

April 2016 I 15

COVER STORY

Indian Cooperative Banks The road ahead

Anand Mishra

ndia has been a capital starved country and in hunt for capital, small entrepreneurs, agriculturists and people with no collateral, artisans, petty traders, women and rural folks, invariably lose out. Cooperative bank were conceptualized to cater to these very segments. The segment was supposed to serve the largest section of people who are untouched by commercial banks as these banks canâ&#x20AC;&#x2122;t venture to the remotest corners of the country and remain viable there. In short therefore, co-operative banks were envisioned as the original vehicle for financial inclusion. They were expected to encourage saving at the grass root level, and make credit available to those unserved by traditional banks. Because of being local in nature, they were also supposed to know the local business environment better and thus assist in economic development of the community. However, the co-operative banking sector stands at a crossroads today. On the one hand, they have grown tremendously, albeit in not completely desired fashion, have developed substantial deposit and credit base, and are, as a group, a strong force in about half a dozen states; but on the other hand, as a class, co-oeprative banks are structurally weak. Multiple collapses have been bringing management inefficiencies to the fore frequently, most co-operative banks are family run businesses with terrible corporate governance

16 I April 2016

record, political interference and influence is rife, and the regulatory framework within which they operate does not allow for effective supervision by RBI. Further, rural co-operative banks are suffering from major problems related to fund availability and debt quality. In the evolving business environment wherein banking is increasingly becoming a function of technology and smart operations, co-operative banks are faced with a two front challenge. Internally, they have to radically change how they operate, and externally, they need to compete with new entities like small finance banks and new age MFIs who have been envisages to leverage cutting edge technologies to win customers. It is an uphill task for co-operative banks.

Among oldest, yet not most evolved India is considered to have one of the oldest community-banking movements in the world. The origins of what is known as urban cooperative banking can be traced to the close of nineteenth century when initial cooperative societies were set up drawing inspiration from the successful co-operative experiments in Britain and Germany. Anyonya Sahakari Mandali was perhaps the first mutual aid society in the country and was set up in the princely State of Baroda in 1889. Urban co-operative credit societies were initially organized on a community basis to meet the consumption oriented credit needs of their members. The enactment of Cooperative Credit Societies

Act, 1904, however, gave the real impetus to the movement. The first urban cooperative credit society was registered in Canjeevaram (Kanjivaram) in the erstwhile Madras province in October, 1904. Bombay Urban Co-operative Credit Society was the most prominent of the initial ones and was set up in 1906. The Maclagan Committee of 1915, which was appointed to review the performance of Cooperative Credit Societies, observed that such institutions were eminently suited to cater to the needs of the lower and middle income strata of society and would www.governancetoday.co.in

inculcate the principles of banking amongst the middle classes. Incidentally, the mandate of cooperative banks has not changed yet. The reputation of co-operative banks was quite high during initial years as the crisis years of 191415, when over 50 joint stock banks collapsed, proved. According to Maclagan Committee â&#x20AC;&#x153;As a matter of fact, the crisis had a contrary effect, and in most provinces, there was a movement to withdraw deposits from non-cooperatives and place them in cooperative institutions, the distinction between two classes of security being well www.governancetoday.co.in

appreciated and a preference being given to the latter owing partly to the local character and publicity of cooperative institutions but mainly, we think, to the connection of Government with Cooperative movement.â&#x20AC;? However, the subsequent years were of uncontrolled and lackluster growth of co-operative banks. The second phase of Co-operative Credit Institutions could be said to have been heralded by the passage of the State Co-operative Societies Act in 1925 by the government of Bombay. The role of co-operative banks in helping the small business and middle

class people was underscored by various committees such as MehtaBhansali Committee which in 1939 recommended that those societies which had fulfilled the criteria of banking should be allowed to work as banks; and the Rural Banking Enquiry Committee of 1950, which recommended the establishment of such banks even in places smaller than taluka towns. However, the big change came in 1966 when the Banking Regulation Act 1949 (BR Act) was made applicable to urban co-operative banks by extending certain provisions of the same. The report of the high powered committee on UCBs, headed by April 2016 I 17

R. Gandhi (2015), categorized the evolution of post 1966 cooperative banking segment in three phases. The first one, the growth phase, lasted till 2003 which was marked by tremendous growth in the number of co-operative banks, number of branches, deposits and advances. From 1,100 UCBs with deposits and advances of Rs 1.67 billion and Rs 1.53 billion respectively, in 1966, the segment has grown to over 1579 UCBs and 9722 branches with deposits of Rs 3.55 trillion and advances of Rs 2.24 trillion. Second phase of the cooperative banks lasted till 2008 and was marked with collapse of multiple banks, Madhavpura Mercantile Co-operative Bank being the most prominent one. Between April 2004 and March 2008, the number of UCBs

framework in 2003 and classified UCBs into four grades - Grade I, II, III and IV, depending on their financial conditions. This was further improved by Supervisory Action Framework (SAF) in 2012 wherein supervisory action was initiated based on various trigger points such as CRAR, gross NPA, CD ratio, profitability and concentration of deposits. SAF was reviewed and modified in 2014 by advancing the trigger points for imposing directions and cancellation of license. Post 2008, the segment has been in consolidation mode as per R Gandhi report, which said that “as a result of the new initiatives and sustained efforts by RBI, the number of financially weak banks in the UCB sector declined. Further, due to consolidation in the sector on account of closure and merger,

Collapse of Madhavpura Mercantile Co-operative Bank caused a panic in co-op banking sector

declined from 1926 to 1770. Stung by such failure, RBI stopped issuing licenses to new banks. It also signed MOUs with state governments as well as the central government to achieve better coordination of regulatory policies and actions, initiating capacity building initiatives and putting in place measures to bring in efficiency through adoption of technology. It introduced the Graded Supervisory Action (GSA) 18 I April 2016

the number of UCBs came down from 1,770 as at end-March 2008 to 1,589 as on March 31, 2014 and further to 1,579 by end-March 2015.” However, the impact of consolidation was a substantial increase in deposits and advances of UCBs which increased from Rs 1,398.71 billion and Rs 904.44 billion as of end-March 2008 to Rs 3,551.34 billion and Rs 2,243.08 billion, respectively, as on endMarch 2015.

Advantage UCBs While expert opinions vary on how co-operative banks have performed or what is store for them, what they all agree on is that cooperative banks are best suited as vehicles to achieve financial inclusion. To a reasonable extent, this has been the case as well. By their very structure and raison d’être, co-operative banks can play a critical role in this area. And the primary reason for their advantage is their local nature. Because of being local and known as local, they are more trusted by small time depositors, helping these banks to mobilize resources from lower and middle-income groups. Bigger commercial banks struggle to reach these sections of population which is invariably financially excluded, as they are unable to create that environment of trust and support. Co-operative banks most often have strong connections with specific communities, and often draw employees from those communities, which increases the trust of small savers as well as borrowers. This trust is the most important ingredient in financial inclusion. According to a public sector banker, the key advantage that UCBs enjoy over commercial banks is derived from their cost structure. A traditional commercial bank, if interested in opening a semi urban or rural branch, has to incur many expenses which are not justified by the business it generates from that branch, thus making the branch loss making from first year of operation itself. UCBs’ cost structure is generally less than commercial banks’; which includes lower operating costs. They pass part of this cost benefit to customers. They also charge negligible processing fee which is a big source of income for commercial banks. Secondly, thanks to their local nature, co-operative banks have enormous informational advantage over commercial banks. Often coming from the local community, they are better aware of the business opportunities that are www.governancetoday.co.in

unique to the area, as well as borrowers’ credentials, not fully captured in the financial statements. Commercial banks, mostly alien to the local factors, can’t have that level of information about the ground realities. As mentioned, UCBs also enjoy operational advantages that emanate from the local nature. These banks are not governed by national and global policies, which allow them the flexibility they can provide to their local clientele. For example, it is not uncommon to find co-operative banks offer loans up to hundred per cent of the education

2012-13, the net interest margin of UCBs stood at 3.35 per cent, up from 3.31 per cent during previous year. This is also higher than 2.89 per cent during 2006-07. The gross NPAs came down from 7 per cent in 2011-12 to 6 per cent in 2012-13. Net NPA recorded an even sharper fall from 1.9 per cent to 1.4 per cent during this period. As for capital adequacy, the CRAR (capital to risk weighted assets ratio) of UCBs as a group currently stands at 12.6 per cent. Only five such banks have a CRAR below nine per cent. Speaking to a national daily,

promoting microfinance activities. These have so far been used mostly by commercial banks. More importantly, majority of cooperative banks have taken to computerization and application of IT. And quite many of these banks have installed a CBS (core banking solution) developed by the National Informatics Centre (NIC). The NIC’s cooperative core banking solution (CCBS) works on the Software as a Service (SaaS) model. The software runs from a remote central server, which individual banks access for their purposes via Internet. NIC hosts the service,

Some co-operative banks have started to offer facilities like ATM

fee and living expenses in case of education loans. No commercial bank goes beyond 90 per cent of the tuition fee as loan amount.

Ratios have improved but problems remain Over last few years, because of the efforts and focus of RBI on operational efficiency, UCBs as a group have turned the corner and have become more prudent both in terms of operational efficiency and capital adequacy. These banks have been maintaining a higher net interest margin than scheduled commercial banks. For the year www.governancetoday.co.in

R Gandhi said, “UCBs have gone through various ups and downs. The latest problem they had was in early 2000. We had to tighten the regulations and supervision. Now, they have reached a good position.” He also drove home the point that the provisioning coverage ratio of UCBs had improved significantly from 52.4 per cent in end-September 2014 to 59.7 per cent as of March 2015. Operationally, more cooperative banks have started to streamline their operations. They have increasingly started using the Banking Correspondents (BC), offering “no-frill” accounts and

besides providing implementation support. CCBS also integrates other services. It is designed to help agriculture societies disburse funds from various government schemes like the rural wage scheme, old age pensions or the mid-day meal scheme directly to beneficiaries’ accounts. This is a major leap in realizing the mandate of financial inclusion by these banks. However, despite these positive developments, co-operative banks continue to face a number of structural problems that have dogged the segment for most part of its life. Most important is the size. Most of these are still singleApril 2016 I 19

STRUCTURE OF COOPERATIVE BANKING IN INDIA The structure of cooperative network in India can be divided into 2 broad segments• Urban Cooperative Banks • Rural Cooperatives

Urban Cooperatives

Urban Cooperatives can be further divided into scheduled and nonscheduled. Both the categories are further divided into multi-state and single-state. Majority of these banks fall in the non-scheduled and single-state category. • Banking activities of Urban Cooperative Banks are monitored by RBI. • Registration and Management activities are managed by Registrar of Cooperative Societies (RCS). These RCS operate in singlestate and Central RCS (CRCS) operate in multiple state.

Rural Cooperatives

The rural cooperatives are further divided into short-term and longterm structures. The short-term cooperative banks are three tiered operating in different states. These are• State Cooperative Banks- They operate at the apex level in states • District Central Cooperative Banks-They operate at the district levels • Primary Agricultural Credit Societies-They operate at the village or grass-root level. branch banks, which makes them extremely vulnerable to the localized problems and business risks. Such banks, when they have exposure to other equally vulnerable banks, and which is a common phenomenon, the systemic risk rises significantly. The failure of the Madhavpura Mercantile Co-operative Bank (MMCB) in Ahmedabad in 2001 is a good example which led to widespread interbank contagion among cooperative banks in Gujarat that kept funds at MMCB. Lack of professionalism is another major problem. The localized profile of these banks, which keeps cost down, often becomes a drag on professional work ethic. The problem is not restricted to lower levels; the quality of people and processes at the top is also a cause of worry for a sizable number of co-operative banks. Talent acquisition and retention at all levels has been a tough task for co-operative banks as they cannot compete with larger commercial banks as far as salaries are concerned. Because of this, in order to improve the human capital 20 I April 2016

of co-operative banks, free of cost training courses for directors, chief executive officers (CEOs) and other officials of UCBs is being conducted by the RBI at regional locations and in local languages for the convenience of banks. Family control of UCBs, many of which are frequently very closely connected to local politics, has also been a gray area for long and is alleged to be the reason for majority of loans going bad for these banks. The apathy and uninterested nature of non family directors, especially independent directors, lends credence to this allegation. To tackle these issues, Malegam Committee had suggested a new organizational structure for UCBs consisting of a Board of Management, in addition to the Board of Directors. The idea was to segregate the ownership of a UCB as a co-operative society from its functioning as a bank.

The way ahead Moving forward, co-operative banks will perhaps be the most

impacted segment because of churning and evolution of the financial sector. Looking at operating environment, a few strands emerge that can potentially significantly impact the co-operative banking system. First, banking industry in general is becoming more technology driven. Emergence of banking through hand held devices such as smart phones is an example. Any financial intermediary unequipped or ill equipped to leverage technology faces extinction in this scenario. Second, moving forward, rural banking will be increasingly done by individual representatives of banks with enough back end support from banks. The usage of banking correspondents will increase significantly once their financial viability is ensured. Third, competition in rural banking space would intensify once entities like small finance banks and payment banks become reality. What is not going to change in times to come is the focus on financial inclusion. If anything, there will be more focus on the requirement to bring unbanked people in banking space, for encouraging entrepreneurship at the bottom of the pyramid and promoting direct transfer of benefits. The role of co-operative banks in these endeavors is unquestionable and so is their ability to make these programs successful. But for playing their part well, co-operative banks need massive overhaul. They need to change their working style, become more efficient and transparent in their operations, stay clear of regional and local politics and be prudent in credit management. Obviously, it is not going to be easy and would require extreme discipline, something that has not been the forte of banking industry in general and co-operative banks in particular. The regulatory landscape of co-operative banking has been changing of late. Malegam Committee and High Powered Committee headed by R Gandhi have provided valuable insights www.governancetoday.co.in

on how future regulatory structure should evolve. Current regulatory structure for co-operative banks is quite muddled. Urban cooperative banks are registered and governed by state governments under the respective Co-operative Societies Acts of the concerned states. They also come under the Banking Regulation Act, 1949 and hence they are under RBI jurisdiction as well. On its part, RBI is gradually allowing more avenues for these banks. For example, in November 2015, it allowed all cooperative banks that have implemented the core banking solution in full, to offer Internet banking services to their customers. They have already been allowed to open branches without restriction with RBI approval. Also they have been permitted to undertake various activities such as opening specialized branches, undertaking intra-day short selling in secondary market transactions in government securities, undertaking ready forward contracts in corporate debt securities, opening currency chests, acting as PAN service agents and issuer of Pre-paid payment instruments etc. These businesses would allow much needed boost in fee-based income. However, undertaking these activities capacity building. And that

With RBI introducing small finance banks and payment banks, competition would rise for co-op banks

is hardly possible in the cozy family owned environment that most cooperative banks are used to. The requirement to professionalize can, therefore, not be more emphasized. More importantly, though, the push for professionalism has to come from inside the system. UCBs need to not only diversify in new territories but also to new activities and for that, they need to have good quality of human capital, even at higher expenses. On their part, regulators need to tighten the leash on the management of these banks

by measures like setting up Board of Management (BoM) in addition to Board of Directors; election of Board of Directors in accordance with the provisions of the respective Co-operative Societies Acts; putting BoM and CEO in complete control of RBI etc. All these measures were suggested by Malegam Committee. Evidently, co-operative banking sector is at crossroads. Historically, they have grown tremendously, even though with intrinsic weaknesses and inefficiencies. However, over last few years they have shown promise and many UCBs have acquired scale and expertise at par with commercial banks. Such banks need to be upgraded as commercial banks and RBI is surely intended to do the same. Majority however, need guided transformation. They need rapid technical upgradation, and gain expertise to increase non fund based income by foraying into other services of financial inclusion such as saving accounts, insurance, and remittance. It is time for Indian cooperative banks to shape up or ship out because competition in coming times will not spare inefficiency or allow complacence which these banks have been used to. anand@governancetoday.co.in

Y H Malegam Committee made substantive recommendations which were accepted by RBI

www.governancetoday.co.in

April 2016 I 21

COVER STORY

Managing asset quality The asset quality of UCBs has shown improvement in recent years

N Ramu

or more than 150 years, credit unions and financial cooperatives have provided affordable financial services to millions of people around the globe. The cooperative banking has attracted policy-related and academic attention since the onset of Great Financial crisis in 2007 all over the world. There are two reasons for the same: 1) they are managing the initial financial and economic storms relatively well and 2) their tendency to adopt less risky strategies. Each year, their overall performance differed in terms of efficiency, profitability and risk compared to the complete banking sector. The strengthening of prudential norms has resulted in increased level of Non-Performing Assets (NPAs) for the cooperative banking sector. As per CAMELS rating model, the highest weight is given to asset quality components. Today, cooperative banks are compelled to maintain superior asset quality in the wake of large scale defaults of cooperative banks in India.

Cooperative banking in India India’s cooperative banking sector comprised of 1579 Urban Cooperative Banks (UCBs) and 94,178 Rural Cooperative Credit Institutions as on 31st march 2015. The Short-term cooperative consists of State Cooperative Banks (StCBs, 32 in number), District Central Cooperative Banks (DCCBs, 370 in number) and Primary Agricultural Credit Societies (PACs, 93,042 in number). Long-term consists of State Cooperative Agricultural and Rural Development Banks (SCARDBs, 20 in number) and Primary Cooperative Agriculture and Rural Development Banks 22 I April 2016

(PCARCBs, 714 in number) at the grass root level catering to the credit requirements of the members.

Indian banking and NPA regulations In 1985, the first ever system of classification of assets for the Indian banking system was introduced on the recommendations of A. Ghosh Committee on Final Accounts. This system, called the ‘Health Code System’ involved classification of bank advances into eight categories ranging from 1 (satisfactory) to 8 (bad and doubtful debt). In 1991, the Narasimhan Committee suggested that for the purpose of provision, banks should classify their advances into: (i) standard assets; (ii) substandard assets; (iii) doubtful assets; and (iv) loss assets. Following this, prudential norms were introduced in 1992 in a phased manner. In 1998, the Narasimhan Committee on Banking Sector Reforms recommended a further tightening of prudential standards and brings them on par with evolving international best practices. With the introduction of 90-days norms for classification of NPAs in 2001, the guidelines were brought at par with international standards. RBI also introduced prudential norms for the UCBs in a phased manner in 1998; insisting on a 90-day norm for all jewel loans and beyond that period, the loans are classified as NPA. This came into force on March 31, 2006

Asset quality of cooperative banks in India The analysis of a bank’s assets quality can be divided into two parts. The first is a qualitative review of the bank’s policies and an assessment of the composition

of its loan portfolio. The second is a ratio analysis of key indicators. The ratio used to judge the extent of the Non Performing Asset (NPA) problem of the bank is gross NPA/ gross advance as shown in Table. It is clearly visible that the gross NPA of UCBs, StCBs and DCCBs have recorded a decreasing trend over the period, and ranges from 18.9 to 6.00 per cent, 16.8 to 5.5 per cent and 19.7 to 9.3 per cent respectively. On an average, the gross NPA of PACs, SCARDBs and PCARDBs are 33.34 per cent, 34.41 per cent and 40.81 per cent respectively over a period. The performance of RCBs except StCBs and DCCBs towards management of asset quality is not up to mark. They have to face recovery problems. As per the RBI circular, the financially sound banks have the gross NPA of less than 7 per cent. It indicates that the UCBs and StCBs are maintaining decent asset quality only in the year 2012-13 to 2014-15 and 2012-13 to 2013-14 respectively.

Non-performing assets of commercial banks Commercial banks continue to report higher bad loans and their gross NPAs as on March 31, 2015, stood at 5.17 per cent. The stressed assets ratio (includes NPAs and restructured loans) was 13.2 per cent. Going by the details of annual financial results of public and private sector banks for 2014-15, the gross NPA of 26 public sector banks have risen by 22.5 per cent to Rs 2.78 lakh crore against Rs 2.27 lakh crore in the previous financial year. From 2013 to 2015, 29 public sector banks wrote off as much as Rs 1.14 lakh crore of bad debts. The Government announced Rs 70,000 crore compensation plans for these banks. As PSBs dominate the Indian banking sector and increase in the NPAs of PSBs is matter of concerns, www.governancetoday.co.in

GROSS NON-PERFORMING ASSETS OF COOPERATIVE BANKS (%)

steps are being taken to improve the situation.

Credit portfolio of cooperative banks vs commercial banks The foregoing analysis clearly states that both the cooperative banks and commercial banks have to face the problems of NPAs. Percentage- wise comparison show that commercial banks are far better placed than the cooperative banks. But it is not the real state of affairs. The commercial banks have made write-off process to show decreasing trend of NPA in their balance sheet. Further, cooperative banks are providing more than 60 per cent of their advances to priority sectors. The major clients of cooperative banks are small traders, artisans, farmers, middle income group, growers, producers and women. The major defaulters of commercial banks are big corporate entities. The RBI has indentified five sectors - Infrastructure, Iron and Steel, Textiles, Aviation and Mining - as the stressed sectors. PSBs have high exposures to the ‘industry’ sector (42 per cent of total credit) in general and to such ‘stressed’ sectors in particular as on 31st march 2015. On the other hand, cooperatives contribution to rural credit is only 27.3 per cent whereas non-institutional rural credit accounts for 42.9 per cent. It raises an important question; are cooperatives, which are to be fundamentally socio-economic entities, being operated as sociopolitical entities? The government had to provide huge amounts to some commercial banks to bail them out in successive years from their problem on NPAs. If it is justified that policy of both the government and the regulator i.e., RBI is to protect the interest of the depositors and the credibility of the banking system, then the same policy should be applicable to those cooperative banks which are suffering from NPAs. Contradictory to this, the RBI and Government www.governancetoday.co.in

S . Year No

UCBs

Rural co-operative Banks(RCBs) Short-term Structure

2005-06 18.9

2006-07 18.3

2007-08 15.5

2008-09 13.0

2009-10

2010-11

2011-12

2012-13

2013-14

2014-15

10.1

8.4

7.0

6.0

5.7

6.0

Long Term Structure

StCBs DCCBs PACs SCARDBs PCARDBs

16.8

14.2

12.8

12.0

8.8

8.5

7.0

6.2

5.5

19.7

18.5

20.5

18.0

13.0

11.2

10.2

9.8

9.3

30.4

29.1

35.7

44.8

41.4

25.2

26.8

32.7

30.3

34.5

30.1

45.1

32.3

33.1

36.0

35.6

35.4

53.7

39.0

51.9

40.6

36.7

37.2

37.3

StCBs: State Co-operative Banks DCCBs: District Central Co-operative Banks PACs: Primary Agricultural Credit Societies SCARDBs: State Co-operative Agriculture and Rural Development Banks PCARDBs: Primary Co-operative Agriculture and Rural Development Banks

NOTES: 1) Data for 2013-14 is provisional. 2) Data on Short Term Structure NPAs of PACs represent percentage of over dues to demand. 3) Prudential norms were made applicable to the UCBs since 1991-93 the StCBs and DCCBs since 1996-97 and SCARDBs and PCARDBs since 1997-98. Source: Reserve bank for UCBs and NABARD for Rural Cooperative Banks (excluding PACs for which the source is NASCOB)

had imposed restrictions on their activities through tightening of prudential norms and fixing some eligibility criteria for getting financial package for rural cooperatives (short-term) only. UCBs were not selected for this benefit. Also, the government released huge funds (Rs 70,000 crore) to writeoff NPAs of PSBs without any restrictions. In what way will this attitude help the balanced growth of financial system as a whole? Contrary to popular perception, the non-priority sector has contributed significantly to acceleration in total NPAs in the

recent period. There is an urgency to promote appropriate behavior and attitude for the bankers to overcome the credit management problems. Reduction of NPAs, accepted globally as an explicit strategy for fostering economic growth, is today a compulsion rather than just a need, not only for cooperative banks, but entire banking system. The writer is an Associate Professor of Commerce at Annamalai University, Tamil Nadu and a UGC Research Awardee

April 2016 I 23

COVER STORY

The Achilles’ heel Corporate governance is an element that is lacking in cooperative banking and can bring about the sector’s downfall

Cooperative banking in India is rife with corporate governance issues

“

Lekshmi Parameswaran Necessity is the mother of all inventions” has become as clichéd a term as ever. But truth remains that for humankind adversity has been the greatest teacher as well as giver. The idea of cooperative movement emanated from this very concept. Faced with utter misery, the poorer sections of the society had all doors closed even for their basic sustenance. It was then that an inclusive developmental model was first proposed by Hermann Schulze and Friedrich Wilhelm Raiffeisen in Europe. The goal was to make credit easily available to those in dire need. India with its myriad

24 I April 2016

problems emulated this model in 1904 by enacting the Cooperative Credit Societies Act. From then on cooperative banks became synonymous with an egalitarian order where every member had an equal stake in the organization’s functioning. However as happens with most of the good things, cooperative banking also degenerated with external elements seeping into the decision making realm and altering its initial goals. With more than 200 million members and 67 per cent penetration in villages, India has one of the largest networks of cooperative banks in the world. Such a large reach has unfortunately affected

the efficiency of the system as a whole. Corporate governance or rather the lack of it has become the biggest factor hindering the growth of this sector. There is no denying that many co-operative banks have become big and are managed professionally with transparency and efficiency, they are few and far and sector in general suffers from poor corporate governance.

Grey areas Cooperative banking in India is arguably a complex world. The lack of clarity in its functioning has meant that rules and regulations could be twisted to fulfill vested interests. Every cooperative bank www.governancetoday.co.in

functions according to its own rulebook which makes it all the more difficult for the common man to understand its intricacies. Though cooperatives came into existence to promote the spirit of cooperation in communities, today they have drifted far from that goal. Right from the time of independence, the governments in power have projected cooperative banking as a medium to propel equitable growth and have been involved in all the decision making processes of the banks. The people at the helm of many of the cooperative banks have affiliation to one political party or the other. This has resulted in the banks doling out many loans without taking into account the principles of asset management and recovery risks. The lack of a transparent mechanism to deal with the issue of nonperforming assets has further compounded to the woes of the cooperatives. The multiple centers of power have eroded the idea of equal membership for all. The arbitrary decisions taken by those who have the required money power has to a considerable extent silenced the voices of the other members. Board members are often seen to override sound banking principles for the sake of short term goals. Moreover, barring the big ones, none of the other cooperative banks have been able to establish good management practices within the organizations. Insufficient funds are often cited as the reason for this. But the question that arises here is, are funds required to provide effective leadership? The very definition of leadership means making optimum use of the available resources. But cooperative banks in India have failed to capitalize on its talent pool which in short supply in any case. Very often it happens because most of the banks do not understand the need to train already skilled workers. Knowledge can be converted into a powerful tool only when proper guidance is given to those who are in charge of executing responsibilities. www.governancetoday.co.in

Another problem with regard to skill management is that the Indian cooperative banks have not been able to attract quality staff. The low pay structure is one of the primary reasons why qualified individuals shy away from thinking of cooperatives as a career path. Also, over the years the powers of Chairman have exponentially grown which has greatly reduced the role of consensus in decision making. Such power centers and laxity in rules and regulations has corrupted the system from within. Inadequate infrastructure is yet another reason hindering the

There is an urgent need to restructure these banks by bringing them under a single regulatory ambit. Uniformity in rules is the first step in making these banks accountable progress of cooperative banks. Many of the institutions in rural areas are still not computerized which makes it difficult to keep a tab on their actions.

Time for reforms The role played by the corporative banks in the Indian economy cannot be overlooked. It gives stability to the internal economy by insulating it from the fluctuations in the global financial market. For rural India, cooperative banks on most occasions turn out to be the only source of institutional credit. If run systematically, these institutions have the potential to alleviate poverty and make people self-reliant. And in a country where

more than half the population is still dependent on agriculture, it will not be an over statement to say that well managed cooperative banks can propel India to greater economic growth and fiscal stability. There is an urgent need to restructure these banks by bringing them under a single regulatory ambit. Uniformity in rules is the first step in making these banks accountable. Along with this, general body election should be made more transparent where every member gets equal rights in practice and not just on paper. The main aim of the cooperative banks was to eliminate the role of money lenders and give the needy access to credit. Unfortunately even after all these decades the goal remains unachieved. The interest rates charged by cooperatives on loans are unaffordable for many in the agricultural sector. One way to solve this problem is to offer differential interest rate in accordance with the asset value. To implement this, what is required is a set of highly skilled staff. Though many states now ask for Higher Diploma in Cooperation (HDC), it is not sufficient to equip the employees to deal with practical challenges. Promotional institutions like National Federation of Urban Cooperative Banks and Credit Societies Limited (NAFUCB) do offer high level training modules to the officers on how to tackle the issues of cooperative banking. But since the nature of these programs is voluntary and not mandatory, the benefits of it do not percolate down to every level. So efforts should be taken to make these training programs all inclusive which would mean even the primary credit societies should come under its ambit. This will enable the employees to identity NPAâ&#x20AC;&#x2122;s and grant loans accordingly. Another factor as has been discussed is the lack of technology. Here again, the promotional agencies have a greater role to play. In the current scenario, big cooperative banks outsource the banking software from elsewhere. April 2016 I 25

This requires a lot of money, something which the smaller cooperatives can ill-afford. What can be done is to develop uniform software for all the cooperative banks and create a provision where cooperatives that do not have the financial means to buy it are given interest free loans. Only systematization will be able to plug the loopholes and stop the exploitation that has become rampant. The cooperative banks in an area can also form a consortium where they pool in their resources

There is an urgent need to stop the practice of letting cooperatives catering to the same objectives function in an area. Often this is done, by slight tweaking in the words. Such a practice defeats the very purpose of the movement. The aim of cooperative banks is to facilitate an environment where people with same interests can come together and find a solution to their problems. Yet another major concern is the restricted ways in which loans are given. For example an agricultural society should be able to cater to all needs of its

auditing and inspection should be conducted by an external agency. Those in power should be made personally liable for any malpractice in the organizationâ&#x20AC;&#x2122;s functioning in order to bring in the much needed efficiency. These measures are but a start to clean up the mess in the sector. The importance of cooperative banks should be seen in the larger perspective of food security and employment generation. Both the rural and urban economies with highly unorganized portions are in need of reliable finances.

to offer facilities like ATM and mobile banking to its members. Cooperative banks in Gujarat have implemented this model on an experimental basis. Otherwise, an apex bank can offer these facilities on behalf of the cooperative banks. Getting experienced personnel from the commercial banks would be a good step in working out the modalities of such a partnership.

members and not place conditions where money is released only for some stated purposes. In the end, no plan will work without accountability. Taking a cue from the New Companies Act, board of directors should be made accountable to the decisions taken by them. There should be timely dispersal of information to all the members. In addition to this, yearly

Especially, for the agricultural sector, institutional credit can go a long way in addressing the problems of ever growing debts. A greater flow of finances will ensure prosperity of not just the farmers or entrepreneurs but the country as a whole.

26 I April 2016

lekshmi@governancetoday.co.in

www.governancetoday.co.in

April 2016 I 27

ECOLOGY

Bracing for the impact The country must prepare to face the near definite rise in sea levels

Ritwajit Das limate change is negatively affecting the health, function and productivity of coastal ecosystems, thus impacting the health and welfare of coastal communities and the billions of people that depend on these natural resources. Moving forward, it will have substantial consequences for the worldâ&#x20AC;&#x2122;s coasts including accelerated coastal erosion and loss of land and property, flooding, saltwater intrusion, shifts in the distribution and abundance of valuable marine habitats, species and biodiversity, and the accelerated spread of exotic and invasive species. Also, global warming will results in more frequent coral bleaching and increased mortality, loss of coastal wetland ecosystems and fishing grounds. Coastal areas most vulnerable to climate change are low-lying islands, coastal areas and deltas; countries subjected to hurricanes and typhoons; and less developed countries. Relative to other coastal areas, low-lying islands, including many Small Island Developing States (SIDS), are more vulnerable to the impacts of climate change because they have relatively scarce natural resources such as water resources, construction materials and physical space. Sea level is escalating due to thermal expansion of the ocean, mountain glacier melting, and discharge from ice sheets as a result of global warming. Numerous coastal eco-regions and conservation areas are prophesied to lose over half of their land areas to marine intrusion, particularly under the 6m sea level rise scenario. Globally, at least 150 million people live within 1 meter of high tide level, and 250 million live within 5 28 I April 2016

Rise in sea level would lead to massive internal migration

meters of high tide. At greatest risk are the densely populated Asian mega-deltas of rivers including the Yangtze (China), GangesBrahmaputra (Bangladesh), Mekong (Cambodia), and Irrawaddy (Myanmar). Other major mega-deltas at risk are the Nile (Egypt), Niger (Africa), and Mississippi (USA).

Sea level rise in India diminishing coast line and natural eco zones The Indian sub-continent is expected to lose almost 14,000 sq.km. of land with the rise of a one metre of sea level due to climate change. According to renowned coastal ecologist Zafar-ul Islam and team- the total area loss due to marine intrusion into coastal areas of the Indian sub-continent is estimated at approximately 13,973 sq.km. and 60,497 sq. km. of land area under 1m (metre) and 6m sealevel rise scenarios, respectively. According to Islam, the threatening sea level rise will directly affect 18 of the 48 ecoregions in India. Under the 1m sea level eco-region inundation range will vary from 19 per cent to 59 per cent, whereas under the 6m sealevel rise scenario, estimates of

eco-region inundation range from 27 per cent to 58 per cent. Below the 1m sea level rise situation, the Godavari-Krishna mangrove ecoregion is predicted to lose more than a quarter of its area, while the UNESCO World Heritage site of Sundarbans in West Bengal is predicted to lose more than half of its area, accounting more than 27 community based islands. Under the 6m sea level rise scenario, three eco-regions (Sundarbans freshwater swamp forests, Andaman Islands rain forests and Maldives Lakshadweep-Chagos Archipelago tropical moist forest) are predicted to lose more than a quarter of their land areas. According to Islam, â&#x20AC;&#x153;Out of the 22 coastal conservation areas, nine will be spared from the effects of marine intrusion under 1m sealevel rise, but only one will be spared under a 6m sea-level rise scenarioâ&#x20AC;?. In short, India could be among the most impacted countries in case of sea level rise.

Internal displacement of coastal people As Panel levels at the 2050,

per the Intergovernmental on Climate Change, sea in India are likely to rise rate of 2.4 mm a year; in the total increase will be 38 www.governancetoday.co.in

cm, displacing tens of thousands of people. For nearly 25 per cent of India’s population living along the coast, global warming is an issue of survival rather than a scientific notion. This will result in large scale migration of displaced coastal people. The migrants will bring with them a host of issues that could spark off fresh conflict over limited resources. According to a recent Australian scientific report, rising sea levels nearly congesting a whole new generation before it is born. Due to advancing sea, people will be forced to drink saline water leading to more miscarriages among pregnant women living in coastal areas. “There will be a severe problem of potable water and people will drink salty water. This will adversely impact pregnancy in coastal India,” says Anthony J McMichael of the Australian National University, Canberra, and an author with the Intergovernmental Panel on Climate Change (IPCC). According to McMichael, a group of leading British scientists had carried out a study in Indian sub continent and found that the rise in sea levels had started affecting pregnant women and altering women’s reproductive anatomy.

Double menace – upsurge of sea level and climate refugees Almost 67 million people in India live within 50 km of the - ‘low elevation coastal zone’ -- comprise coastal regions that are 10 metres above the average sea level. These are the areas that will be submerged first in the event of rising sea levels. Rural and urban populations in equal proportion inhabit them. Even 1-metre rise in sea level could result in nearly 6,000 sq km of India being engulfed with water. According to Greenpeace Report prepared by Sudhir Rajan from the Indian Institute of Technology, Madras, advocates that India will face major outmigrations from coastal regions. Highlighting on various scientifically www.governancetoday.co.in

backed estimates of sea level rise, he divides the ‘business as usual’ scenario into three categories: 1m, 3m, and 5m of sea level increases in the year 2100. According to these estimates, around 120 million people will be rendered homeless, by 2100, in Bangladesh and India. There do, however, seem to be some international efforts at bringing the issue of climate and environmental refugees to the forefront. The United Nations University (UNU), United Nations Environment Program, International Organization for Migration and Munich Re Foundation jointly launched the “Climate Change, Environment and Migration” initiative to push for formal recognition of climate refugees at international level addressing the issue from policy to practice imperatives. Anthony Oliver-Smith of the UNU’s Institute of Environment and Human Security says, “There is an urgent need for an internationally accepted definition of the term ‘environment refugee’.” Norwegian Refugee Council, a prominent humanitarian organization in Norway that works with global refugee issues, has been advocating an international convention to protect the rights of climate refugees. It suggests an international environment migration fund contributed to by industrialized nations. Meanwhile, a recent WWF-UK lobby has called the UN and its consortium to compensate victims of climate change. The issue of climate refugees is starting to receive political recognition in the European Union.

Coastal adaptation strategies – a plausible way forward Sea level rise is bound to happen and coastal communities are at high level of risk. Government, NGOs, bi-laterals, multilaterals, scientific bodies and corporates with social agenda must collectively come together to adapt on these anticipating menace. Concerned stakeholders need to have a

detailed vulnerability assessment procedure at place, which will efficiently capture situational appraisal of concerned coastal communities. Assessing a coastal area’s vulnerability to the impacts of climate change involves understanding of three factors: first, the climate projections for a given region or locale; second, what is at risk (climate change exposure and sensitivity); and third, the capacity of society to cope with the expected or actual climate changes (adaptive capacity). Combined, these three factors define the vulnerability of people. Tailoring adaptation measures to climate change requires information on climate processes and impacts for specific coastal areas over a timeframe much longer than the typical 5-10 years used for planning and policy. When assessing vulnerability and what to do about it, it is reasonable to use a 100-year timeframe—since we know climate change impacts will grow stronger with time. Successful adaptation requires setting clear geographic boundaries within which to focus the assessment and actions. Especially difficult in coastal areas, but it is important. Here, the interconnectedness of issues is amplified by the flows of water from rivers and ocean currents. If policy makers realize the criticality of the issue of climate change and resultant sea level rise and take necessary measures right now, generations to come will pay the price. Limiting the impact of climate change is a global responsibility, and as such, hard to achieve, but India must have a national contingency plan which would reduce the impact of the inevitable on its citizens. It is our responsibility towards coming generations.

The writer is an international research consultant on climate change, urbanization and sustainability issues in Asia, Africa, and Europe

April 2016 I 29

INTERVIEW JOHN MCCASLIN | MINISTER COUNSELOR FOR COMMERCIAL AFFAIRS, U.S. EMBASSY, NEW DELHI

INDIAN INVESTORS IN THE UNITED STATES ARE TREATED ON AN EQUAL BASIS AS AMERICAN INVESTORS

ver last few years, business relations between India and the United States have grown very rapidly. The U.S. has traditionally been one of the largest FDI investors in India and now India has emerged as a prominent FDI investor in the U.S. To find out more about the investment opportunities available for Indian investors in the U.S. and the theme of the forthcoming SelectUSA investment summit that helps investors facilitate the investment climate in the U.S., Rajesh Mehta, Consulting Editor, and Anand Mishra, Editor, Governance Today, spoke to Mr John McCaslin, Minister Counselor for Commercial Affairs at the U.S. Embassy, New Delhi. John has a long and unique experience in both commercial and foreign services and has served in various capacities in Russia, Poland and South Korea prior to his assignment in New Delhi. EDITED EXCERPTS:

In the recently announced 3rd Select USA Investment Summit in Washington DC, US Ambassador to India Richard Verma spoke about the relevance of the theme of this 30 I April 2016

year’s Summit, ‘The Innovation Advantage’ to India. Could you please elaborate on this? This year’s SelectUSA Investment Summit theme is “The Innovation Advantage”. The Summit will feature investment

opportunities from every corner of the United States for global investors, where attendees will hear from high-profile business and government leaders on the latest trends and learn how the culture of innovation and related assets in the United States can contribute to the success of businesses. In India, the startup www.governancetoday.co.in

culture is booming and this country is among the world’s leaders in startups and innovation. The Government of India and the business community is adding impetus to this by encouraging employees to take risks, innovate and create. As Ambassador Verma has rightly said, “India is known for creative and dynamic thinking”, and this year’s theme of innovation will definitely resonate with Indian entrepreneurs and investors.

How does SelectUSA Summit help Indian Companies in investing in the United States? The SelectUSA Summit is designed to help investors understand the investment climate in the U.S. and the various opportunities available across the country. The event brings together thousands of participants, allowing investors to learn from and meet with American companies and business associations, U.S. Government officials and economic development organizations (EDOs). As Vinai Thummalapally, Executive Director of SelectUSA and former U.S. Ambassador to Belize says, “For companies thinking about opening or expanding operations in the United States, there is no more efficient way to meet the right people and discover opportunities from across the entire country.” Participants will include international and domestic companies of all sizes seeking to establish or expand operations in the United States, as well as U.S. state, regional, and local EDOs; business associations; service providers; and other organizations that facilitate business investment. In addition to an agenda featuring high-profile CEOs, government leaders, and other experts, the Summit will include an exhibition hall where U.S. economic development organizations will host booths to www.governancetoday.co.in

present opportunities, share the advantages of their locations, and connect directly with investors. Investors can register at http:// selectusasummit.us/.

What are the major incentives that Indian investors are given in investing in USA compared with other developed countries? While I cannot comment on other developed countries’ incentives for investments, I can say that the United States is the world’s leading recipient of foreign direct investment. Several factors

contribute to making the U.S. an attractive investment destination. • Our higher education system is unmatched: we are home to 16 of the world’s top 25 universities. • Our highly-educated workforce ranks among the most productive in the world. • Our commitment to innovation, invention, and entrepreneurship is second-to-none: we make up nearly one-third of global research and development and 30 percent of the world’s patent applications. • Our energy supply is stable and abundant: America is now the top oil and gas producer in the world. • Our intellectual property protections are the gold standard; we have a transparent and predictable regulatory market; and we abide by the rule of law. • Investors that open offices in the United States can take advantage of the dozens of free

trade agreements with other countries, while offering access to a huge consumer base in the United States. SelectUSA offers help to investors to guide their investment decisions. Specifically regarding incentives, Indian investors in the United States are treated on an equal basis as American investors, so they have access to all of the same federal programs. The SelectUSA website, http:// selectusa.commerce.gov/ investment-incentives.html, has a wealth of information about federal business programs. SelectUSA can also help investors learn about the many incentives offered at the state level. Also, the Confederation of

Indian Industry (CII) has written a very good survey of Indian companies’ state-by-state operations in the United States called “Indian Roots, American Soil”. I highly recommend that investors take a look at that report. But investors do not need to do all of this research alone. We are here to provide investors information that they need to guide their decisions. Also, there are nine U.S. states and one county that have official representatives in India, which can be introduced through our team in seven offices across India. And SelectUSA can be an ombudsman for investors that face a challenge with government regulations or processes.

India is the fourth fastest growing source of FDI in US with $11 bn investment in US last April 2016 I 31

year. Could you please give details about the sectors which attract Indian Investors the most? The top industry sectors by the number of announced Indian FDI projects in the U.S. are in the sectors of Software & IT Services; Business Services; Financial Services; Pharmaceuticals; Plastics; and Industrial Machinery.

Of late, there has been a rise in protectionist sentiment in US about foreign trade and inflow of foreign workers. How do you see these impacting the business sentiments? Mission India continues to process the world’s largest number of H1-B and L-1 temporary worker cases. In FY 2015, Indian citizens received 69 percent of all H-1B visa and 30 percent of all L-1 visas issued worldwide, more than any other country. Mission India also issued more than 110,000 H-1B visas in FY 2015, more than any other time in history. Overall visa demand for all categories of visas has seen unprecedented growth. In FY 2015, our posts in India adjudicated visas for over one million applicants for the first time, and the demand for visas continues to rise. Travel for tourism, business, and education has seen unprecedented growth: a 152 per cent increase in overall visa applications for Indians wishing to travel to the U.S., reaching a total of over one million applications in FY 2015. We are committed to issuing a U.S. visa to every Indian citizen who qualifies for one – whether the visa is to work, study, or to visit family and friends in the United 32 I April 2016

States. Although the majority of applications are processed and ready to pick up within 2-3 business days, some applications may require additional time, so it’s always a good idea to apply early. Accurate information about the visa process can be found on http://www.ustraveldocs.com/ in/. Regarding foreign trade, a recent study by the White House’s Council of Economic Advisers presents empirical evidence about the effects of enhanced U.S. trade and U.S. free trade agreements (FTAs). The study showed that U.S. businesses must overcome an average tariff hurdle of 6.8 percent, in addition to numerous non-tariff barriers (NTBs), to serve roughly 95 percent of the world’s customers outside American borders. The United States is already one of the most open markets in the world, meaning that the main impact of new trade agreements with the United States would be to decrease foreign barriers to U.S. exports. In 2014, almost 70 percent of U.S. imports crossed American borders duty-free, but many U.S. trading partners maintain higher tariffs that create steep barriers to U.S. exports. It is important to remember these facts when considering whether there is a “protectionist sentiment” in dealing with the United States. Further, the SelectUSA Investment Summits for 2013 and 2015 were oversubscribed, with representatives from state and local governments across the United States showing their enthusiasm for foreign investment. Last year, the President and six Members of his Cabinet made it very clear that the United States warmly welcome foreign companies.

Next year, a new US administration would assume office. How do you visualize it impacting the business

environment for potential investors? While there is currently uncertainty about the outcome of the election this November, I am confident that the United States will remain an attractive business environment that is deeply engaged in international economic issues. As a whole-ofgovernment program, SelectUSA enjoys broad support from both parties of the U.S. Congress and has so far demonstrated solid results in attracting new foreign direct investment into the United States.

What would be the top action points on which you would like to see action in India to further the business and commercial relations between India and the US? In September 2015, the United States and India engaged in the first U.S. - India Strategic and Commercial Dialogue (S&CD) in Washington DC. The next S&CD will take place in New Delhi later this year, in which both countries will discuss solutions to complex problems, while also highlighting areas of cooperation that benefit the industries in both our countries. Four core themes will be discussed during the S&CD, which we believe will unlock new opportunities for both U.S. and Indian companies: • Ease of doing business; • Collaboration on the development of Infrastructure; • Innovation and entrepreneurship; and • Standards wherein both countries will identify priority sectors where cooperation could lead to positive outcomes for bilateral trade.

www.governancetoday.co.in

POLICY

Time for big-bang agricultural reforms The government is making serious efforts to make agriculture a thriving economic sector

Govt plans to double farmersâ&#x20AC;&#x2122; income by 2022

Vinit Goenka

his yearâ&#x20AC;&#x2122;s annual budget has set afoot the initiative to implement the promises that NDA government had made while being sworn in, bringing radical changes in the agriculture and making it a profitable profession. The Prime Minister Narendra Modi has even assured to double the income of farmers by 2022 and the flurry of schemes announced by him has guaranteed that the target can very well be achieved. www.governancetoday.co.in

Indian agriculture is poised for a stupendous growth; at least the Economic Survey 2015-16 that was tabled in the Parliament insists so. Although it has predicted a moderate growth for overall economy, Surveyâ&#x20AC;&#x2122;s assertion on radical transformation of agriculture sector assumes greater significance as it will ensure the sustainable development of our farmers. The agriculture experts are saying that it the high time for the country to adopt high yielding Genetically Modified (GMO) crops, stepping up pulses and oil

seeds output with an increase in investments for improving irrigation, and expanding the coverage of Minimum Support Price (MSP) mechanism among farmers. Because of experiences under the previous regime, there are good reasons for some of the public apprehensions on GMOs; therefore, the regulatory process in India needs to evolve in order to address the concerns so that they do not spring up mid-way while adopting high yielding technologies. Two consecutive drought years has brought the focus on expansion April 2016 I 33

of the acreage under irrigation while adopting the relevant technologies for efficient use of water through suitable pricing. Fulfilling our motto of providing food security to everyone, Indian agriculture has become cerealcentric and as a result, regionallybiased and input-intensive, consuming generous amounts of land, water, and fertiliser. Since more than 58 percent of the rural households depend on agriculture directly as their principal means of livelihood, government has already taken major steps to address issues related to soil and water resources that are critical for improvement in agriculture production. The central government of India recognises the importance of micro irrigation, watershed development and ‘Pradhan Mantri Krishi Sinchai Yojana’; thus, it allocated a sum of Rs 5,300 crore for it. The Department of Agriculture and Cooperation under the Ministry of Agriculture has inked agreements with 52 countries including the US, which would help in areas such as research and development, capacity building, food processing and plant protection, among others. The NDA government has also taken steps to improve soil fertility on a sustainable basis introducing the soil health card to support the organic farming scheme ‘Paramparagat Krishi Vikas Yojana’. Other steps include improved access to irrigation through ‘Pradhanmantri Gram Sinchai Yojana’; enhanced water efficiency through `Per Drop More Crop’; continued support to Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) and the creation of a unified national agriculture market to boost the incomes of farmers. The Economic Survey has acknowledged the steps taken by government in modernizing the agriculture. Centre had allocated Rs 25,000 crore for the Rural Infrastructure Development Fund (RIFD), Rs 1,500 crore for the long-term rural credit fund, Rs 45,000 crore for the short-term 34 I April 2016

cooperative rural credit finance fund and Rs 25,000 crore for the short-term Regional rural bank (RRB) refinance fund. It also marked an ambitious target of Rs 8.5 lakh crore of agriculture credit during 2015–16. One thing that needs dire improvement is the procurement policy which is disproportionately focussing on crops such as rice and wheat instead of pulses and oilseeds. While Minimum Support Price (MSP) exists for most farmers for most crops in principle, its realistic impact is quite limited

transaction costs and time, improved sea-port gate management and better fiscal incentives would contribute to the agriculture’s growth. Furthermore, Food Corporation of India should outsource its stocking operations to various agencies and it may hand over all procurement operations of wheat, paddy and rice to Andhra Pradesh, Chhattisgarh, Haryana, Madhya Pradesh, Odisha and Punjab as they have sufficient experience and reasonable infrastructure for procurement. Some of these recommendations

New techniques can do wonders for agriculture

for most farmers in the country. This has resulted in buffer stocks of paddy and wheat to be above the required norms, but also caused frequent price spikes in pulses and edible oils, despite substantial imports of these commodities. The Economic Survey, a sacred document for agriculture experts, has predicted the sector to generate better momentum in the next few years due to increased investments in infrastructure such as irrigation facilities, warehousing and cold storage. Factors such as reduced

were also made by Shanta Kumar Committee that was formed by Modi government last year for restructuring the Food Corporation of India and make our Targeted Public Distribution System better. The writer is an avid contributor on agricultural economy. He is Secretary at Uttan Krishi Sanshodhan Sanstha, an Agricultural Diploma College in Thane & Member of Task Force IT in Ministry of Shipping, Highways, Road Transport , Government of India

www.governancetoday.co.in

INTERVIEW Dr UWE WEBER | TEAM LEADER, SWITCH-ASIA NETWORK FACILITY

FUNDING FOR RESEARCH AND INNOVATION ON ENVIRONMENTAL TECHNOLOGY NEEDS TO COME FROM BOTH GOVERNMENT AND THE PRIVATE SECTOR

n an age where climate change has become a pressing concern for all, the European Union through its SWITCH-Asia program is helping interested parties adopt sustainable practices. With the end goal of promoting economic prosperity and reducing poverty in Asia through the means of sustainable growth, the program has paved way for many innovations. It also acts as a common platform for Europe and Asia to come together and engage in the exchange of ideas and explore trade opportunities. Since 2008 it has been working across 18 Asian developing countries through 100 demonstration projects and policy support actions. In an interaction with Governance Today, Dr Uwe Weber, Team Leader, SWITCH-Asia Network Facility talks about the program with special focus on its activities in India. EDITED EXCERPTS: www.governancetoday.co.in

Can you elaborate on SWITCH-Asia and its achievements in the field of sustainable development?

promote changes in consumer behaviour, e.g. reducing use of plastic bags, supporting green public procurement initiatives and increasing the share of green products.

SWITCH-Asia has been promoting the concept, approaches and policies for sustainable consumption and production (SCP) in Asia, including India, since 2007. On the production side, the grant projects of the SWITCH-Asia Programme have worked with Small and Medium-Sized Enterprises (SMEs) of various sectors to improve resource efficiency, reduce pollution, implementing health and safety measures for workers as well as improving energy efficiency. Furthermore, the SWITCH-Asia Programme addresses the complementary issue of sustainable consumption and has worked with retailers, consumer associations, civil society and public authorities to

SWITCH-Asia has funded a project that was implemented by GIZ in India to improve the situation of e-waste recycling in Delhi, Pune, Kolkata and Bangalore. The project provided policy recommendations and inputs into the updated legislation

Waste management is one of the biggest problems in India and SWITCH-Asia has been involved in providing solutions to this. What are the bottlenecks that you have faced at the implementation level, if any?

April 2016 I 35

for e-waste recycling, which is still under development. From our understanding, more needs to be done to provide incentives to establish recycling facilities, which conform to acceptable environmental standards and occupational health and safety standards. The active involvement of the informal sector, which was supported to formalise its waste collection and recycling business, in developing practical solutions is important. Identified challenges resulted, for example, from the widespread attitude of e-waste producers to sell their scrap equipment to the highest bidder. The waste collectors paying highest prices for scrap are normally those not considering costly environmental and safety requirements in their activities. This situation creates a deviation from best e-waste management practices, which generally require waste generators to pay for the disposal of their electric and electronic scrap in environmental compliant and safe ways. It can be perceived as a general bottleneck that the willingness to pay for environment related services is not yet well developed.

SWITCH-Asia has been trying to encourage MSMEs to adopt sustainable technologies. Has it met with progress? Yes, there has been progress made in many fields. An example from India is the “ACIDLOOP” project, which introduced sustainable practices and technologies for acid recovery and efficient water use in the Indian metal finishing industry. Another project is the “MSME Cluster” project that promotes cleaner production among MSMEs in the foundry sector, to reduce greenhouse gas emission. To achieve this, the project provided technical training and consultation, where MSMEs adopted energy efficiency measures, e.g. 36 I April 2016

better cupola that reduce coke consumption. .

India that have attracted your attention?

In a developing country like India, financial viability is seen as the most important factor in taking a project forward. What are your suggestions to encourage research and innovation in a field that is perceived as cash strapped?

The most promising model seems to the Green India Campaign, but it is too early to conclude how successful it will be. Another important element of sustainable development in India are grassroots initiatives and NGO action, for instance our Going Green project which promotes sustainably produced local textiles via a combination of grassroots actions with government schemes. In so doing, it helps preserve local handicrafts, empowers women, offers literacy and trainings, ensures social entitlements and nurtures a culture conducive to sustainable consumption.

That’s not only an issue in India, but within all countries in Asia, and also in Europe. There are two main issues to be addressed here. First, funding for research and innovation on environmental technology needs to come from both government and the private sector. Funding can be leveraged from the private sector with adequate legislations putting a cost to unsafe and environmentally harmful production practices via energy and water as well as waste water and waste pricing. Another issue is financing for SMEs to upgrade their technologies. SWITCH-Asia has supported several projects that work with financial institutions to try and develop mechanisms that provide better access to finance for SMEs. Much more work on this still needs to be done in the future. Financial institutions require capacity building on environmental related criteria for loans i.e. reduced risks of environmental and safety accidents or economic benefits resulting from an improved resource efficiency technology. SMEs require support to submit loan applications (because every financial institution has different and many times complicated loan application system) and to provide the required documentation (e.g. financial history) to make their investment proposals bankable.

Are there any sustainable development models in

What do you think of the Paris Agreement on climate change? The Paris Agreement is an important step in the global process to prevent dangerous climate change. The Agreement also includes language on SCP, acknowledging that SCP is a crucial element to mitigate climate change. Another important aspect is the acknowledgement of the 1.5 degree target. The challenge now is to implement the Paris Agreement, including the mobilisation of the substantial financing required for this.

What are the areas that SWITCH-Asia is looking to get involved in the future? SWITCH-Asia will continue to co-finance projects in Asian countries to realise SCP solutions until at least 2020. What SWITCHAsia will support depends to a large degree on the contents of the proposals, which are submitted to the European Commission. In the latest batch of projects starting in 2016, many projects work on issues like sustainable construction and energy efficiency in buildings.

www.governancetoday.co.in

April 2016 I 37

JUDICIARY

Lok Adalats are a really prudent way to dispose off large number of cases in no time

Perennial pendency

Is only judiciary responsible? Or the citizens also to blame? Sagarika Ranjan

ustice in our land has long lost its sheen and now trust in judicial system is going down the drain. People say judiciary is not for the poor. It is only for the influential and the rich but the judiciary claims that it is earnestly trying to dispose of cases at the earliest but the infrastructure 38 I April 2016

is not viable enough nor are the litigants responsible enough. â&#x20AC;&#x153;The Indian Constitution along with a plethora of pro-poor laws and policies of Government seeks to provide an environment where rights of the people remain protected. An independent and proactive judiciary along with a vibrant civil society also contributes to an enabling environment. Yet

access to justice remains a distant dream for many vulnerable sections of the society. Judicial delays and costs remain the most prominent reasons why people feel alienated from the justice system,â&#x20AC;? states a report by the Department of Justice Ministry of Law & Justice, Government of India. Talking to Governance Today, Meenal Sinha, Criminal Lawyer, www.governancetoday.co.in

Calcutta High Court said, “We need more Magistrates and Sessions Judges. Since, most of the cases are pending trial and hearing at that level in the criminal sector, we need more judges at the lower level.” Certainly there are problems within the system like shortage of judges, unfavorable judge population ratio and fund crunch but there are many outside problems that add to the delay in justice. One of the very important issues is the delay caused by the investigating agencies in filing charge sheet. There is a need to speed up investigation. A law, www.governancetoday.co.in

limiting the time of investigation and speeding up the submission of charge sheet is the need of the hour. Further, investigation and reinvestigation should be a rarity, and in case the same is allowed, cost should be imposed on the parties coming for the same. As in many cases re-investigations are like double check just to be sure, thus wasting time and finances of the system. “Fixing a time limit will lead to responsible and genuine cases being pursued by the litigants and not cases started for harassing

people and will also decrease the cases filed with ulterior motives,” said Mrs Sinha explaining that in many cases the petitioner files cases just to harass the accused. Such cases add to the number of cases and leads to wastage of all the resources directed to give justice in that particular case. With the judiciary people also need to be responsible and bear the cudgel towards reducing the pendency in judiciary. In cases of appeal against acquittal whenever it’s heard, since the person was already found innocent, so hearing out the same should again be done after imposing some cost to avoid those cases that are filed to harass either of the parties. Private disputes of cheating, misappropriation of money, basically cases which are based on documents can be decided through mediation. Parallel proceedings, for a civil remedy and a criminal remedy opted only to harass the accused or to pressurize the accused person should be scaled down. If the litigant is getting his remedy in the civil proceeding, then criminal proceeding should be quashed, said Mrs Sinha. Citing some cases she further explains the situation. For instance, if a person (wife/parents) is getting maintenance through Section 125 of the Criminal Procedure Code, seeking economic relief through Domestic violence Act in case of wife and in case of parents through Maintenance and Welfare of Parents and Senior Citizens Act, 2007 is not solicited. Similarly, in cheque dishonor cases, aggrieved parties can file cases under Section 138 of the Negotiable Instrument Act and Section 420/406 of the Indian Penal Code. The remedy should be given under one Act and one law. This will also help reduce the number of cases as the same offence will not have two different cases. A very positive change that has been brought under the Arbitration Act is that the time period of arbitration has been reduced to a period within nine to 12 months. April 2016 I 39

This will aid in disposing off the cases at a quicker rate. The other requirements include less adjournments be given for the cases. Vacant benches in the judiciary also need to be filled up at the earliest. One of the most haunting issues for the people working in this field is the absence of lucrative financial incentive. “The number of advocates practicing is less because there is absolutely no money when you start, at least for the first five years. It is a big challenge for the people coming from not so strong financial background,” informs Mrs Sinha who has been into the profession for last two years and yet her remunerations are still negligible. The judicial fraternity believes that there should be a minimum of Rs 15 to 20 thousand as remuneration for the start up lawyers who do a minimum number of cases for the state and are actively involved in litigation/research. Naturally though, the statistics and implementation of the same needs to be worked out. The basic problem of the lack of money is primarily the reason why many are not willing to practice. On one hand where there is nothing to earn in courts, on the other hand, law firms all over the country are offering packages that are in lakhs. Therefore, decent of not competitive incentive needs to be floated to compete with the handsome packages of these law firms. “Some of the Judges, I can speak of are at the Calcutta High Court. They are trying very hard to dispose of the cases as soon as possible. For instance, Justice J Bagchi of Calcutta High court disposes of the old cases by appointing amicus curiae (An amicus curiae (literally, friend of the court; plural, amici curiae) is someone who is not a party to a case and offers information that bears on the case, but who has not been solicited by any of the parties to assist a court.)...cases pending since 1985 - 86... He is able to dispose of five to six appeals per day,” says Mrs Sinha. Justice J Bagchi is an example 40 I April 2016

of many such judges who are trying their best to improve this plagued pillar of our democracy. The important and also the sad part is that it is not judiciary that is solely responsible for the mess we are in today. People file cases to avenge and revenge but little thought is given to these judges and lawyers who are tirelessly working to cut down this age-old extra fat from the judicial records. This is not all. Every petitioner looks for the best bid and therefore

the same amount of time. The lawyers also have to fend for themselves at times. There is no security for the monetary remunerations of the lawyers. As it is that they are paid very less fee and on top of that some of the clients run away without making any payments. There is no system in place to see that the lawyers’ fee is recovered in every circumstance. “This is a general scenario especially in the case of young lawyers and therefore nobody is

Large number of young lawyers find practice unviable

all want that an established lawyer takes up their case. The litigants only go to the high profile lawyers, who end up having so many cases that they cannot do justice to every case. These lawyers keep on taking adjournments, since they cannot be everywhere at the same time. However, as always there is a way out. If the Judges stop giving adjournments all the time, this would lead to the cases being dismissed. Now, this is something a lawyer/ litigant wouldn’t want. Hence, the litigants will approach all lawyers irrespective of their experience and qualifications just on the basis of their availability. This would result in a more delegated environment of work and thus more and more cases will be heard and disposed in

interested to take up litigation. Most of the law graduates, therefore, prefer law firms to courts. The report by the law department says that inadequacy of infrastructure facilities in District and Subordinate courts has remained a major bottleneck in the judicial system largely contributing to the accumulation of arrears but we need to understand our responsibilities as a citizen, as an applicant to file only genuine cases. At the same time the government needs to offer better, decent remunerations to the young lawyers so that they contribute in reducing the burden of crores of pending cases that has only multiplied over the years. www.governancetoday.co.in

SOCIAL

Justice eludes marital rape victims

Way back in 2000, the Law Commission of India had said to criminalize marital rapes, but successive governments have dithered

Sagarika Ranjan few weeks ago, taking a diametrically stand to her previous one, Women and Child Development Minister Maneka Gandhi said, â&#x20AC;&#x153;It is considered that the concept of marital rape, as understood internationally, cannot be suitably applied in the Indian context due to various factors like level of education/illiteracy, poverty, myriad social customs and values, religious beliefs, mindset of the society to treat the marriage as a sacrament etc.â&#x20AC;? The statement created a stir. Several thinkers, noted social workers and also our parliamentarians came out openly on the issue. As expected, there were debates, discussions and www.governancetoday.co.in

opinions but the issue remained on backburner as no one is willing to challenge this socially accepted cancer. Of late debates on marital rapes and whether it should be legalized have gathered steam. There are innumerable cases where wives have been subjected to physical excesses in the name of service in marriage. These victims try to get justice only to find that there is no official definition for marital rape in India. In our patriarchal society, we are internalized to think that intercourse is a part of a wifeâ&#x20AC;&#x2122;s duty towards her husband and his will is supreme. Needless to say, there is a need for a law against marital rapes. It is urgent and not only the victims but even the Law commission of

India has recommended it. Way back in 2000, the commission had said to criminalize marital rapes. Even Justice Verma committee constituted to probe the Nirbhaya gang-rape case had demanded criminalization of marital rapes. But in 2016, the government still is not ready to consider the issue through the prism of justice. Another equally important need of the hour is to make all such laws gender neutral so that the atrocities committed on men is also addressed adequately. Here in our society as women are considered frail beings, almost all the laws favor the women folk.

The law states Rape is defined under Section April 2016 I 41

375 of the Indian Penal Code. It explains that a man (not woman) is said to commit “rape” that, except in the case hereinafter accepted, has sexual intercourse with a woman under circumstances falling under any of the six following descriptions:

Firstly: Against her will.

One of the wives was gagged and tied to her bed before intercourse but she was his wife and so it’s not rape.

Secondly: without her consent.

She was not ready and therefore forced upon that led to serious physical disorders later.

Thirdly: With her consent, when her consent has been obtained by putting her or any person in whom she is interested in fear of death or of hurt. When she was threatened that her son, from her previous husband, would be killed if she denied, she put her foot down. But she was a wife, so no complaints. Fourthly: With her consent, when

the man knows that he is not her husband, and that her consent is given because she believes that he is another man to whom she is or believes herself to be lawfully married. There are cases where a man believes that his wife is his family’s property and every man in the family has a right over her, especially the right over her body. A lady may have opposed but a wife cannot, a daughter-in-law cannot.

Fifthly: - With her consent, when,

at the time of giving such consent, by reason of unsoundness of mind or intoxication or the administration by him personally or through another of any stupefying or unwholesome substance, she is unable to understand the nature and consequences of that to which she gives consent. Strangely, there are cases where women in the house drug the victim so that they have a baby

42 I April 2016

COUNTRIES WHERE MARITAL RAPE IS STILL LEGAL AFGHANISTAN

INDIA

NIGERIA

BAHRAIN

IVORY COAST

PAKISTAN

BOTSWANA

LAOS

ALGERIA

BANGLADESH

IRAN

OMAN

KUWAIT

SAUDI ARABIA

BRUNEI DARUS-

LEBANON

SINGAPORE

CAR

MALAWI

ORC

MALAYSIA

TAJIKISTAN

MOROCCO

YEMEN

SALAM CHINA

LIBYA

SOUTH SUDAN

MALI

SYRIA

EGYPT

MONGOLIA

HAITI

MYANMAR

ETHIOPIA

SENEGAL

SUDAN

UGANDA ZAMBIA

Source: Wikipedia

soon or a mother’s son gets all the pleasure he wishes for.

Sixthly: - With or without her consent, when she is under sixteen years of age. Child marriage is still a truth, a reality and therefore this type of marital rape is prevalent but mostly goes unreported. In legal tongue, penetration is sufficient to constitute the sexual intercourse necessary to the offence of rape but sexual intercourse by a man with his wife, the wife not being under fifteen years of age, is not rape. Even though the six criteria under which the crime is established is often present in all the marital rape cases. Having sexual intercourse with your wife is thus an exception to rape, only condition is that wife should be above 15 years of age. In the Indian Penal Code, marital rape is not defined. But Section 376-A, which comes very close to this term, speaks about any sexual intercourse with a judicially separated wife by her judicially separated husband without her consent is punishable with an imprisonment of a term which may

extend to two years and shall also be liable to fine. However, this is no relief as in most of the cases, the victim is not separated. Meenal Sinha, lawyer with Calcutta High Court explains that the legislature felt that this type of sexual intercourse should be kept outside the arena of rape and should not furnish an additional ground to a wife to ask for divorce, for such intercourse may lead to reconciliation. “Turning to the English law, as a general proposition a husband cannot be guilty of a rape to his wife. The reason for that is on marriage the wife consents to the husband’s exercising the marital right of intercourse during such time as the ordinary relations created by the marriage contract subsists between them. The marital right of the husband in such circumstances exists by virtue of the consent given by the wife at the time of the marriage and not by the virtue of a consent given at the time of each act of intercourse as in the case of unmarried persons,” informs Mrs Sinha. However, the other folds of the issue put a question mark on this www.governancetoday.co.in

There is a need to criminalize marital rapes coupled with gender equality

provision. The other folds being cruelty; there have been cases where justices have made an order on the ground of the husband’s persistent cruelty, containing a provision that “the wife be no longer bound to cohabit with the husband,” the order has the effect in all respects of a decree of judicial separation and one result of it is that both the persons and property of the wife are protected by it, and her consent given at the time of marriage is revoked. But the question is that is it enough to separate? There have been cases where wives have been stripped naked and made to stand outside in cold conditions; gagged; tied and chili powder applied on their private parts. Their bodies were disfigured as they were subjected to unnatural ways of the sexual act – sodomized and oral sex. Shocking enough, same goes with the male folks. And this type of crime goes mostly unreported. There is no HIS in the law but there are men who face such excesses. They are threatened, subjected to mental torture and forced emotionally, in most cases, to have sexual relations. www.governancetoday.co.in

For these men there is not even domestic violence law. Whatever be the degree of torture all they can do is to get a divorce. So the bigger question is to criminalize marital rapes coupled with gender equality. “My husband gets very violent during sex. There is no love. I am slapped and pinned down by force. I bleed and he walks away when done. For me it was never a happy act as described in books. I am happy that it is being taken up openly,” said a 30-year-old woman on condition of anonymity. On the other hand, a 28-yearold man admits that he is emotionally blackmailed to be in bed and at times has to do it at the threat of being dragged into cases of domestic violence and dowry. Such are the cases that emphasize upon the need for gender neutral laws. As women have now started to come out in the open and discuss their ordeal but for men it is far more difficult as it’s still a patriarchal society where men cannot cry. As per our social consensus marriage confers right of marital intercourse. As per a normal understanding, it is an act of love

which should not be seen as a crime at all, at least between the couple. Hence, if the wife is tormented to such an extent that he or she cannot participate in such act of love, it implies that the marriage of the couple has not been consummated. Law has given a remedy in the form of divorce, mutual separation. Exactly where the debate begins: What is the problem then? The problem is that when the same act is committed out of marriage it is adorned with the adjectives of brutality, cruelty, inhuman action but when it is committed under the cover of marriage it becomes a couple’s personal matter. We fail to see that the pain and sufferings are no less. The only punishment that can be meted out to an accused is separation. He or she is free to marry again and continue tormenting some other individual. Over 100 countries have criminalized marital rapes. It’s time that India takes a mature decision and proceeds on the lines of gender neutral laws that criminalizes marital rapes. April 2016 I 43

EDUCATION

Towards a new educated, informed and strong India The classrooms are being thrown open to new possibilities, new initiatives and ideas to revamp our education system

Sagarika Ranjan urgesh, Poonam, Reena, Anil, Gita, Sohan and many more. They all stopped going to school. Some were in class four, some in class two; Durgesh managed only a couple of days in school. Somehow, the plot does not evoke much response now, we have all become used to hearing kids dropping out of school for want of classrooms, toilets or other basic infrastructure. The news here is the new vision of the solutions to these problems. The present government has been working on a few new ideas that seem promising. Connecting over a million schools in the country digitally, addressing shortage of teachers through volunteers and through online lectures, and creation of an education system beyond books are some of these that have given hope to millions across the country. In his Teachers’ Day address this year, PM Narendra Modi had said that many good teachers will be able to take classes just as he was taking questions from students, sitting in some remote corners, through video conferencing. According to the Education for All (EFA) Global Monitoring Report by United Nations Educational, Scientific and Cultural Organization (UNESCO), “Digital classrooms can complement classes given by less qualified teachers. In India, the

44 I April 2016

Digital material aided teaching has improved learning at schools

Digital Study Hall project provides digital video recordings of live classes taught by expert teachers, which are shown by DVD in rural and slum schools. An evaluation of four schools in Uttar Pradesh found that, after eight months, 72 per cent of pupils had improved test scores.” In rural India, an after-school program for children from low income families used mobile phone games to help them learn English. This resulted in significant learning gains in tests of the spelling of common English nouns, particularly for children in higher grades who had stronger foundation skills, states the EFA report. Specifically, considering the case of India there is a need for a middle path to begin with. These e-learning programs have to be a blend of both traditional and contemporary methods of teaching as well as learning. “There are glaring challenges in the implementation of this scheme. There is no internet here most of the time. If it is there, the speed is not good enough for video or at times even audio streaming,” said

a government teacher in Baghda village in Bihar. Low rate of literacy, unavailability of electricity, unwillingness to study, poverty-driven dropouts are just some of the many issue challenging the initiative. However, there are positive initiatives, in this case catalysts to taking a confident stride in right direction. All these years there have been complains as to why India doesn’t spend more on education. Fund crunch has always hit the execution as our public expenditure was woefully inadequate in education. Not anymore. Recently, the PM had set up eight groups of secretaries to suggest ways that can help improve growth in all the sectors of the economy. The reports submitted by these groups have recommended increasing public expenditure on education to six per cent of Gross Domestic Product (GDP) from current 3.85 per cent. This apart, they also recommended introducing a new scheme – Unique National Initiative for Quality and Universal Education www.governancetoday.co.in

(UNIQUE). Suggested to begin this year itself, the scheme is for provisioning funds to the states to improve the quality of teaching right from class one to 12. Twenty per cent of fund allocation will be performance-based. These recommendations will trigger better performance of the educational institution for performance linked part of funding, thus increasing the total allocation of finances as fraction of the GDP. Besides, there is a strong possibility of better services as each state will compete against another and in the process the quality of education will improve. Another recommendation of the committee was entrance exam for teacher training institutions from 2017-18. “This is a very welcome step as the quality of teachers has been degrading with each passing day. Not because the teachers are bad but because first, no good student wants to become a teacher and second the training institutes are not up to the mark,” said Minni Sinha, professor of Physics at Patna University. According to new global projections from the UNESCO Institute for Statistics, chronic shortages of teachers will persist beyond 2015 for decades to come if current trends continue. In total, the world will need an extra 3.3 million primary teachers and 5.1 million lower secondary teachers in classrooms by 2030 to provide all children with basic education. In such a scenario, focusing on the quality of teachers and their training is a thoughtful step. Another new idea recommended by the group of Secretaries was to introduce vocational education as a part of the regular course structure from class 9. A student can continue with the mainstream studies or take up a vocational training from class 9 and gain expertise, enough to be absorbed in the industries and earn a livelihood for her or himself. These are not just talks; concrete steps are slowly becoming visible. For example, the government has increased the stipend of the post graduate and PhD scholars. As www.governancetoday.co.in

per the present provisions, a post grad student gets Rs. 12,400 per month and a PhD scholar gets Rs 33,000 per month. An important parameter to assess the quality and quantity of education system is the amount of academic research done in a country. The percentage of research scholars in India is among the lowest in the world. Increased money could encourage more academic research. Another facility that can work wonders for the poor is uploading all the NCERT books on the NCERT website free of cost in pdf

named Swayam will help students get certificates without having to leave their families or whatever responsibility that keeps them from attending regular college. A sum of Rs. 10 crore has already been released to IIT, Kharagpur to set up the digital library. On World Women’s Day a unique initiative was launched to identify geographical pockets which fared poorly in terms of education among girls so that corrective measures could be taken. For improved institution selection, the All India Council for

Online availability of NCERT books is a boon for kids in far flung areas

format. It is a step towards helping those poor students who cannot afford books and for those areas where availability of these books is a luxury. The efforts do not end here. The Government has launched a number of new schemes and projects for better and holistic human resource development. An initiative to create a national digital library and set up a platform through which faculty members of institutions like IITs, IIMs and central universities would offer online courses, for all willing to study, free of cost has been taken up. The online course platform,

Technical Education has developed a portal to help students know about the colleges under it and make better choices about where to take admission. It is called the ‘Know Your College’ portal. It’s all at a very nascent stage and yet some positive impacts can be felt. India is growing educationally and with every child’s development, India develops a bit. Indeed, the classrooms have been thrown open for all – girls, workers, and students good at subjects and also who are good at vocations. A new dawn, an educated dawn is in the hopes now. April 2016 I 45

TRANSPORTATION

Brimming with hope Inland waterways based transport in India has not been exploited fully despite holding tremendous potential

Lekshmi Parameswaran

May, 1498 is a day that changed the destiny of India forever. It was on this day that the Portuguese traveler Vasco de Gama reached Indian shores. The knowledge of navigation helped him travel via the Atlantic Ocean to reach the fabled land called India. In fact, the history of mankind would have been vastly different if not for water transport. It is the knowledge of navigation which helped humans conquer new frontiers. Before the advent of new technologies, inland waterways based transport was also as significant as the ocean or land based transport. Starting from ferries, humans slowly moved to mechanized boats and ships which formed the lifeline of the statesâ&#x20AC;&#x2122; economies. But after the introduction of railways and advancements in road transport, waterways lost its importance. It came to be viewed as an unfeasible mode of transport due to its lack of speed and efficiency.

Importance of waterways Many a time, with changing conditions, it becomes necessary to reevaluate the benefits of certain things. Water transport is one such sector that needs to be viewed with the required level of seriousness. At present, India has a total navigable length of 14,500km of rivers and canals of which a little more than 50 per cent is used regularly. Of this, 4,555 km are designated as national waterways and the rest is divided between canals are rivers. The six national waterways are; the Ganges (Ganga)â&#x20AC;&#x201C;Bhagirathiâ&#x20AC;&#x201C; Hooghly rivers, the Brahmaputra, 46 I April 2016

the Barak river, the rivers in Goa, the backwaters in Kerala, inland waters in Mumbai and the deltaic regions of the Godavari - Krishna rivers. When taking into account the population explosion and space constraints, it is evident that the potential of water transport remains largely unexploited in the country. This fact is all the more surprising as water transport remains the cheapest mode of transport even to this date. It requires minimal infrastructure and the maintenance costs are negligible compared to what is spent on road and rail transport. Moreover, with traffic congestion becoming a major cause of concern for all cities, the need is almost urgent to diversify to different modes of transport. And with water transport, there is the additional advantage of it being pollution free. Before railways emerged as a prominent mode of transport, inland waterways were the arterial source for both internal and external trade. In the present times, 44 million tonnes cargo is transported through the six waterways using both mechanized and non-mechanized vessels. Fertilizers, food grains and containers occupy the largest share of the goods transported. For the heavy vessels, inland waterways offer enormous possibilities both in terms of quantity and quality in trade. Another point that goes in favor

of waterways is its accessibility. Since places close to riverbanks are prone to floods, in areas where the monsoons play havoc, they remain the only mode of transport for many. This is true especially for areas in North-east India where railway lines get inundated and villages are cut off for days together. It is also the safest mode of transport with the lowest possibility for accidents.

The dissuading factors In spite of all the seemingly clear advantages, why then has inland water transport not become as popular as it should be? It constitutes less than one per cent of the total cargo movement in the country. Government apathy would look like the obvious answer. Though this is an important aspect, there are multiple factors contributing to the underdevelopment of waterways. The dual control where the national waterways come under the central government and rest under the respective state governments is one such contributing factor. The lack of coordination among the concerned authorities leads to negligence and policy paralysis. The erratic nature of Indian rivers is also an important reason why water transport has not taken off. Except for National Waterways 1 and 2 which constitutes perennial rivers, all the other river beds experience dry spells in harsh www.governancetoday.co.in

summers. Sometimes the deltas are too shallow for the ships to pass through. In monsoons, there arises the problem of meandering along with silting. Sometimes, the rivers take a lengthier course cutting across narrow stretches and blocking pathways which renders them ineffective for transportation. Even if the geographical factors are in favor of inland water transport, lack of infrastructural facilities becomes a concern. The major waterways where traffic of heavy vessels is the maximum do not have enough number of dockyards. The supply side of the chain is not streamlined which makes trade difficult. Also, the country is in need of more number of specialized inland vessels to carry out trade to its optimum capacity. Slow pace has always weighed down water transport. Adding to this is the time consuming clearance procedure at the points of entry. The sheer number of documents required is enough to discourage even the well meaning of all traders from taking recourse to this mode of transport. The lack of an immediate redressal mechanism further increases the complexities involved.

Changing the course The decision by the Union Cabinet chaired by Prime Minister, Narendra Modi in 2015 to add 106 national waterways to the existing six national waterways is a welcome step. It stresses on the importance the present government places on inland waterways. Of this, 18 waterways have already been identified which include five waterways each from Karnataka and Meghalaya, three each from Maharashtra and Kerala, and one each from Tamil Nadu and Rajasthan. The Inland Waterways Authority of India (IWAI) which is a statutory autonomous body responsible for regulating inland navigation will be overseeing the overall implementation of the project. This initiative should be seen in the context of the ambitious www.governancetoday.co.in

106 national waterways will be added to the existing six national waterways

‘Sagar Mala’ Project under which the government plans to develop the existing ports into modern world-class ports. These ports will be integrated with the industrial clusters, rail lines, roads, coastal and inland waterways. For this, the government has already announced plans of mobilizing Rs 10 lakh crore investments which includes Rs 4 lakh cr for infrastructure alone. If this project is implemented successfully, it will be the panacea for all that is wrong with the inland waterways transport. IWAI is also the implementing agency for the World Bank assisted ‘Jal Marg Vikas’ Project on NW 1 (River Ganga). With a funding of Rs 4,200 crore, it aims at developing a channel between Allahabad and Haldia stretch covering a distance of 1,620 km. Once completed, it is expected to enable commercial navigation of 2,000 tonnes. An integration of channels at multiple levels will make the use of inland waterways economically viable. Linking of rivers to road and

railways will ensure that movement will be undeterred in times of water scarcity. This will also encourage the state governments to revamp the unused stretches of the river for both trade and tourism purposes. Concurrently, there is also a need to invest more in research and development. The diversion of water to canals for irrigation should be done on a scientific basis without adversely affecting the water level of rivers. The same principle is also applicable to the proposed interlinking of rivers. Ultimately for any policy decision to succeed, there is need to spread awareness and elicit the support of common public. For this, high speed engines should be introduced and passenger services should be promoted. India is blessed with abundant water resources which hold huge possibilities for inland waterways based transport and the time is right to exploit them. lekshmi@governancetoday.co.in

April 2016 I 47

HEALTH

Still a serious concern

To tackle the menace of TB, the Government must ensure access to quality, affordable diagnosis and treatment, regardless of where an individual seeks care Ramesh Kumar Raja

he prevalence of tuberculosis (TB), one of the world’s deadliest diseases, has been a major health concern of India for centuries. It is second only to HIV/AIDS as the greatest killer worldwide due to a single infectious agent. According to the health ministry, 40 per cent of Indians are affected with TB. India, in fact, is the world’s ground zero of this curable disease (if treated in time). The World Health Organization has cited the country to have the highest burden of TB accounting a quarter of the world’s annual incidence of the disease. In 2014, 2.2 lakh Indians succumbed to the bacterial ailment. Furthermore, the threat of drug resistant TB is larger than ever and needs to be urgently tackled. Although TB is close to being eradicated in the developed world, it is a serious concern in developing countries, where the high prevalence of the disease is mainly

48 I April 2016

due to malnutrition, crowded living conditions and poor tuberculosis control infrastructure. In India, undiagnosed and mistreated cases of TB continue to drive the grave scenario. Early diagnosis, correct treatment and completion of treatment are absolute necessities, if we are to bring down the incidence, prevent relapse and emergence of drug resistance. Doctors stress that greater awareness can prevent a large number of tuberculosis deaths, many of which happen due to lack of reach of proper treatment and drug resistance. The risk of developing active tuberculosis is a two-step process, beginning with initial exposure to and infection by Mycobacterium tuberculosis followed by subsequent progression to disease. “In India, the rates of infection are actually so high that the bacteria are prevalent in the air. This is why a large number of people in India have latent bacteria. This means the bacteria remains passive inside the body because the body has

strong resistance against it. This latent infection becomes active when the body’s immunity levels plummet due to any reason. This is why people with weakened immune systems have a much greater risk of falling ill from TB. Notably, a person living with HIV is about 26 to 31 times more likely to develop active TB because HIV destroys the body’s immunity. This explains why TB is a leading killer of HIVpositive people causing one fourth of all HIV-related deaths. Another hurdle to the treatment is that within a short time of commencing treatment the patient begins to feel well and symptoms are relieved to a great extent. This is equated with cure, which is not so. Patients tend to discontinue treatment and relapse with multidrug resistant TB, which is more virulent, difficult to treat and expensive,” says Dr Piyush Goel, consultant pulmonology and critical care medicine at Columbia Asia Hospital, Gurgaon. The good part is that TB is curable. Although a contagious infection that starts usually from the lungs but may spread to other organs of the body, it can be treated with a 6-9 months treatment. A failure to complete treatment results in a more dreadful problem associated with TB today – that of drug resistance. “Anti-tuberculosis drug resistance arises due to improper use of drugs in drugsusceptible TB patients. Improper or irrational use often implies failure to ensure that patients complete the whole course of treatment. Once the patient takes the drug for a period of time and then skips it without completing the course, the bacteria in his or her body develop resistance to this particular drug. This drug will now have no impact of the infection when consumed again,” adds Dr Goel. Essentially, drug resistance arises in areas with weak TB control programs and this is today a major problem in India where the medical fraternity is struggling to deal with the problem of multi-drug resistant TB. Recently, Union Health and Family Welfare Minister JP Nadda www.governancetoday.co.in

and several Indian parliamentarians from the Global Coalition Against TB acknowledged the need to prioritize TB control and pledged their support towards achieving the Sustainable Development Goal for the disease. The minister further emphasized that the Revised National Tuberculosis Control Program (RNTCP), the government agency responsible for TB control, needs restructuring to make it more meaningful and private players need to be involved. “If implemented at scale, the government’s commitment to increase private sector engagement to encourage standard TB care practices across the spectrum of healthcare providers can give a much needed boost to the country’s TB control efforts,” feels Madhukar Pai, Canada Research chair in epidemiology and global health at McGill University, Montreal. At the same time, the health ministry must increase its budget for the RNTCP. While delays at the state level in the release of allocated funds have hindered effective functioning of the national program, the RNTCP has a history of being significantly under-funded. The allocation towards the RNTCP has consistently shown a trend of being lower than the required and requested amount. This is not surprising, given the overall under-investment in health by the government. According to Pai, who was a member of the Joint Monitoring Mission of 2015, a group of technical experts that reviewed the RNTCP’s performance in April last year, “The findings by the mission reveal that while the country has made progress in reducing the TB burden, a minimum of Rs 1,500 crore were needed by the RNTCP to execute its own National Strategic Plan 2012-2017. In 2014, the allocated amount toward the RNTCP was Rs 640 crore while the requested amount was Rs 1,358 crore – a shortfall of 53 per cent.” Another key scheme is the Initiative for Promoting Affordable, Quality TB tests (IPAQT), a private lab network that has increased www.governancetoday.co.in

HOW TO MINIMIZE RISK AND PREVENT INFECTION Those with pulmonary TB are contagious for 2-3 weeks after starting treatment. The patient is advised to wear a mask for this period

Eat healthy Eating a balanced diet full of vegetables and fruits to keep the supply of vitamins and minerals abundant is important to keep the body healthy and immunity good.

Live healthy lifestyle A growing number of our present day concerns stem from lifestyle disorders. Living a sedentary life, lack of sun exposure and absence of physical exercise weakens the body and makes it prone to illness. Proper control of diabetes is essential to prevent lowering of immune status.

Never ignore symptoms Always report any symptoms that may indicate an infection. Persistent cough, recurrent fever, fatigue, weakness, and loss of appetite or weight are symptoms that should never be ignored.

Be cautious against infections If you work in high risk zones such as hospitals, you should be all the more cautious. Maintain high levels of personal hygiene, avoid close contact with the infected and follow infection control mechanisms to prevent the disease. access to accurate diagnostics at lower costs. The government could evaluate these projects, and scale up aspects that have worked well. Clear guidelines can be established to rope in the private sector in such public-private partnership projects. “With the introduction of new diagnostics (e.g. GeneXpert), new TB drugs (bedaquiline and delamanid), and new adherence monitoring solutions and ICT platforms, India is well placed to design a comprehensive strategy to incorporate these into the RNTCP, and modernize DOTS services. These new tools will need to be made more affordable for the Indian public, in both public and private sectors,” observes Pai. Last but not least, strong activism is of great importance to enhance public awareness, and to stimulate political leadership for the cause. Although TB advocacy has received a remarkable boost in the recent past via print and

electronic campaigns, it needs to reach all Indians. Empanelment of superstar Amitabh Bachchan as an ambassador for TB control is a welcome step in this regard. It may be noted that the legendary actor himself is a TB survivor, who contracted the disease in 2000 on the day he was going to start famous TV show, ‘Kaun Banega Crorepati (KBC)’. He had to go through a very rigorous treatment for almost a year. In order to protect people from the spread of endemic and reach the missing million cases, the government must guarantee access to quality, affordable TB diagnosis and treatment, regardless of where an individual seeks care. Furthermore, we must make a practice to commemorate the World Tuberculosis Day on March 24 to highlight our efforts in eliminating the disease. ramesh@governancetoday.co.in

April 2016 I 49

INTERVIEW Dr ANURADHA KAPUR | LEAD CONSULTANT, DEPARTMENT OF OBS AND GYNAE, MAX HOSPITAL

IVF IS HERE TO STAY

st century has gifted us with technology but it has also given birth to lifestyle changes that has resulted in one of the most talked about concerns today â&#x20AC;&#x201C; Infertility. Ritika Bisht of Governance Today, in conversation with Dr Anuradha Kapur, Lead Consultant, Department of Obs and Gynae at Max Hospital, discusses the issues leading to infertility and resulting popularity of IVF in India. EDITED EXCERPTS:

In-Vitro fertilization or IVF as is commonly known, has seen a rising trend in India since number of 50 I April 2016

couples here dealing with the issues of infertility are also increasing. Can you brief us about different types of fertility treatments that you suggest to your patients? We take into account those couples who have been trying to conceive for over a year. This is the scenario with the younger couples but we start counseling older couples after 6 months of unprotected intercourse. When a couple has been unsuccessful at achieving pregnancy after one year, both partners need to go through a comprehensive physical and medical assessment.

For the baseline tests on women, we need to know the detailed information on birth control use, menstrual and pregnancy history, surgical history and other health issues. Then we run basic hormone tests like FSH (Follicle Stimulating Hormone), LH (Luteinizing Hormone), Prolactin and baseline ultrasound. For men, we suggest baseline semen analysis. This is the basic and initial tests that are undertaken and if some issues are found during this step then we treat with medication. However, if both the semen analysis and the other testing return normal results, then we move to additional testing called HSG (Hysterosalpingogram) which is an x-ray of uterus and fallopian tubes. A dye is injected through the cervix into the uterus and fallopian tubes which enables the radiologist to see if there is blockage or some other problem. In case it is polycystic ovary syndrome (PCOS) then we opt for ovulation induction. If for any reason the woman is not ovulating well we give her ovulation induction drug. We give ovulation induction medicines like clomophene for 6 months and if they do not succeed in causing ovulation then we move to injection FSH. The injections are started early in the menstrual cycle and are continued until one or more mature follicles are seen with ultrasound examination of the ovaries. Once the leading follicle(s) reaches 18 mm in diameter, the egg is considered mature and ready for ovulation and this is when the hCG (human chorionic gonadotropin) injection will be given. If the semen count is ok and the uterus and tubes are ok we ask the couple to try www.governancetoday.co.in

naturally. However if couples donâ&#x20AC;&#x2122;t conceive within next 3-4 months then we move on to intrauterine insemination (IUI). In this procedure, the male would be asked to produce a sperm sample on the day the treatment takes place. The sperm will be washed to remove the fluid surrounding them and the rapidly moving sperm will be separated out from the slower sperm. The rapidly moving sperm will be placed in a small catheter to be inserted into the womb. However, even if this treatment fails then we move to last resort, IVF.

According to studies, stress has been stated as the foremost reason among women who have difficulty in conceiving. Even if they opt for any fertility treatment, there is a high probability that the treatment may not prove to be that effective due to stress level. How do you counsel patients before going through the treatment? Counseling is very important for couples during this time as we empathize with their situation and thus we let them know about all the available treatments. Stress is the primary factor for infertility among young couples, especially in women as they face lot of pressure from their family members and in-laws to have a child. The problem is even if they come to us for treatment the procedure would work best in the absence of stress. That is why we try to counsel not only couples but also family members so that they understand that pressurizing only deteriorates the situation. Nowadays, in most cases both husband and wife are working and with such a busy lifestyle people hardly get time to work www.governancetoday.co.in

on health issues that can be easily eliminated by daily exercise and good diet. Thus, our first suggestion for couples is to bring down the stress level and initiate yoga, exercise and healthy diet.

While IVF and other related treatments give people hope, are there any serious complications involved during the procedure? Complications associated with use of these medications include the possibility of overstimulation, called ovarian hyperstimulation syndrome, or OHSS.

Hyperstimulation involves enlarged ovaries, abdominal pain, and fluid build-up within the abdomen. However, in majority cases there are mild symptoms which can be easily treated. Other complications include risk of multiple births which happens if more than one embryo is implanted in a uterus. A pregnancy with multiple fetuses carries a higher risk of early labor and low birth weight than pregnancy with a single fetus does. Then there is also comes the risk of miscarriage with IVF treatments and its possibility increases with maternal age.

What is the success rate of the process? IVF success is affected by many factors in like age, ovarian reserve tests, sperm count, reproductive history etc. Women with top chances of IVF success have per-cycle success rates of 40 per cent or higher, while the majority of women have percycle success rates of 20-35 per cent. The moment we encounter the patient we brief about all the advantages and disadvantages about the procedure. This treatment is costly and that is why we never give them false promise of increased success rate and present them a realistic picture.

What is the future of IVF and other related treatments? IVF is definitely here to stay. The number of couples facing infertility has increased in last decade and it will continue to increase further. The primary reason for this is that people are getting married late and thus planning for family late. It is further accompanied by massive changes in lifestyle and stress that is adding up to infertility. IVF and other related treatments are boon for couples. April 2016 I 51

POLICY

Defying the stereotypes

Positive steps taken in some states to improve the lives of transgenders should be replicated

Lekshmi Parameswaran cceptability is something that every human craves for. The way the society is defined conventionally has place only for those who conform to well-defined social constructs. Anything out of the sacrosanct standard is often ridiculed. This is the reality which stares in the face of those thousands of transgender persons in the country. For them every day is a struggle in a society that refuses to accord them the basic dignity of life. Because of such social oppression, many are forced to lead a life of utter misery frequently resorting to begging and prostitution. It all seems ironical when one takes a look at history. Transgender communities are not the product of recent times. In fact their history dates back to 4000 years and are chronicled in the ancient texts where they are revered as bearers of luck and fertility. Over the years, the perceptions drastically changed and the term ’transgender’ came to be associated solely with sexual orientation. It was forgotten that being a transgender pertains to the complex question of gender identity and the society as a whole had to take part in understanding these conflicts. Unfortunately the deep seated societal bias ostracized the entire class of transgender persons. And in order to legitimize the atrocities and ill-treatment meted out to them, many superstitions came to be associated with them. They were relegated to the deepest corners of the society where even their existence was never acknowledged. 52 I April 2016

But against all these odds, the transgender community stood united and kept giving strength to more and more people to fight their personal demons. Here what needs to be understood is that transgender is a wide encompassing term and includes cross-dressers, transwomen, trans-men and any gender role that do not fit into the accepted social definitions. In India, transgenders are mostly associated with the ‘hijra’ community due to the traditions and history associated with them. Their guru-chela system where an older member takes the responsibility of a newly inducted person has proved to be a strong support system in overcoming the challenges. Perhaps it was this persistence and the absolute confidence of the community in their decisions that slowly brought about a change in mindsets. In 2014, in a landmark judgment, the Supreme Court of India recognized transgenders as the third gender. They were finally counted in the census and were given the rights to cast votes as third gender. This was historic in many ways. Apart from the recognition, it meant that they could now be part of the mainstream society and demand their rights like any other citizen of the country. They could walk with their heads held high without having to assert their identities every single time. In the midst of such an extraordinary moment, the government of Kerala surprised all by coming out with a Transgender Policy in 2015. Though prior to this, Tamil Nadu had set up a Special Welfare Board for transgenders

and the Karnataka government has passed a resolution entitling transgenders to be included under 2A of the Backward Class Commission that allows 15 per cent reservation to section minorities, sex workers and children of people living with HIV/ Aids. This particular move is way ahead of all the measures that have been taken to ensure the welfare of the community.

Kerala’s transgender policy By becoming the first state in the country to have a Transgender Policy, Kerala has indeed set an illustrious example for the nation to follow. This step assumes greater significance when the ground realities are taken into consideration. Kerala is without doubt a land of paradoxes. While on one hand, it has shown its refusal to adapt itself to the modern day norms, on the other it has accorded dignity to a section of population considered social pariahs by many in the country. The State Policy for Transgenders in Kerala, 2015 unveiled at the first international conference on gender equality has touched upon almost all aspects of the lives of transgenders. The policy which follows the Supreme Court Judgment aims to expand www.governancetoday.co.in

the scope of Articles 14, 15 and 16 of the Indian Constitution thus doing away with the false binaries. It clearly bars the use of the term ‘others’ for gender identification and gives a person the right to identify themselves as male, female or the third gender. While the policy prohibits any form of discrimination of transgenders, it also ensures their right to live with privacy and personal integrity. For this, provisions have been made for affirmative action treating the community as socially and educationally backward. This is a significant step for a community that has consistently faced exploitation at the hands of authorities. The state wide survey conducted by the Social Justice Department has brought to light some harsh realities of harassment which obstructs the transgenders from leading a normal life. Due to the social stigma attached, another growing concern among the community is the spread of HIV and other life threatening diseases. Many of the hospitals refuse to treat them leaving them to their fate. The policy has addressed this issue by providing for separate HIV Sero-surveillance centers and by bringing transgenders under the cover of various health schemes. A supplementary clause enabling the establishment of a fund for Sex Reassignment Surgery (SRS) www.governancetoday.co.in

in government hospitals comes across as compassionate. Mention is made on the need to sensitize the hospital staff on how to deal with cases involving transgenders. Provisions are also made for their housing and to provide the elderly with monthly pension. In addition to all these measures, the policy has ensured the community equal political and social rights. They are actively encouraged to take part in all the decision making processes. This would in essence mean that the country will get more number of transgender MLAs and MPs. To ensure their judicial rights, it has been stipulated to constitute a state Transgender Justice Board and district Transgender Justice Committees. An option for legal remedy will go a long way in empowering the community and helping them find a strong foothold in the society.

Erasing the blemishes The tides are definitely changing in favor of the transgender community. The country got its first transgender band this year named ‘6 Pack Band’ based in Mumbai, and its popularity has been soaring with each day. Manabi Bandopadhyay has become India’s first transgender college principal, Kamla Jaan has become the first

women transgender mayor and Kalki Subramaniam has become India’s first transgender entrepreneur. These are some of the people who have made the country proud. The introduction of ‘G-Taxi’ service in Kerala, owned and operated by transgenders is another promising initiative and an indication of brighter times to come. All said, the integration of transgenders in the society will require victories in multiple struggles. For example, despite much agitation, Article 377 criminalizing ‘unnatural sex’ is still around and is often used to harass transgenders. Until the lawmakers and legislators of the country become pragmatic enough to do away with this section, transgenders can never be fully brought to the mainstream. Changing the mindset of the society as a whole is a huge challenge. It will be some time before people learn to embrace the differences whole-heartedly. The first humane gesture that the state can do is to give transgenders access to public spaces especially schools, hospitals and toilets. Along with this, the transgender community should also reciprocate these gestures and stop activities like pick-pocketing which has forced the society to view them with fear and suspicion. Then there is the question of trans-men. For a man trapped in a woman’s body, it is all the more difficult to come out in the open. There is no support system in place for such individuals and most of them live a life of desolation. In cases where the societal oppression is absolute, transgenders often resort to substance abuse. The need of the hour is to create an environment conducive enough for those who identify themselves differently to lead a normal life. Sex change surgeries should be a deeply personal choice and not a decision arrived upon due to feelings of neglect. For a country like India that has rested its faith in democratic rights, the welfare of transgenders will be the ultimate test of all the values that the nation has been proud of. lekshmi@governancetoday.co.in

April 2016 I 53

INTERVIEW KALKI SUBRAMANIAM | FOUNDER, SAHODARI FOUNDATION

I HAVE LEARNED TO FIGHT BACK AND LIVE LIFE ON MY OWN TERMS

n a world that is known for its rigidity of established values and practices, Kalki Subramaniam is a name to reckon with. As a transgender person, her battles have often revolved around creating an identity for herself. Her unwavering faith in herself and her abilities helped her to emerge victorious in each and every one of those struggles. Today, she has earned herself the distinction of being the countryâ&#x20AC;&#x2122;s first transgender entrepreneur and is also the founder of Sahodari Foundation which works for the empowerment of transgender people in India. Lekshmi Parameswaran of Governance Today spoke to Kalki to get a deeper insight into the issue of gender identity and know about her vision for the transgender community. EDITED EXCERPTS:

54 I April 2016

Can you take us through your journey? It has been tough and challenging and it still is. However I have learned to fight back and live life on my own terms. Because of my gender identity I have faced discrimination and stigma throughout my life. But today I live with pride. I live a happy life www.governancetoday.co.in

mainly because I stopped worrying about peopleâ&#x20AC;&#x2122;s criticism.

You are a successful entrepreneur. How difficult was it to get accepted in a space that remains male dominant? I am an artist at heart and business is new to me. I wanted to promote village craftsmanship and do my part to revive our ancient wisdom. That is the reason I started Brand Kalki Handicrafts. I have approached so many people to seek support and to promote my handicrafts. I had been welcomed warmly and encouraged greatly. My growth as an entrepreneur is slow but steady. I want to be known as a business woman with ethics and not here to make quick money. I promote wind chimes, xylophones and other genuine craft works.

Tamil Nadu is one of the most transgender friendly states in India. The system of Guru and Chela has been instrumental in helping people overcome the societal bias. Can you elaborate on how this functions? Usually a male to female transgender person, when rejected by their biological family needs the emotional support and social security. This is offered by the Jamaath in the Hijra community. A transperson is inducted as a part a disciple/daughter of any hijra that she considers her guru or mother. It is a unique system which has been supportive for those abandoned by their families. However, over the years it has also become highly exploitative and some gurus force their chelas into sex work and begging. I am not a hijra, yet I have a guru who is more like a friend to me. www.governancetoday.co.in

Though the government has finally given legal recognition to transgenders, the fight for equality seems to be a long drawn out struggle. What are the measures that the government can take to ensure equal social, political, economic and cultural rights for the community? Educating on gender and sexuality to our adolescent children at schools is of primary importance. The government must find ways to implement it without inhibitions. This will reduce gender based violence drastically over the years. Reservation in jobs and education is a must for the upliftment of the transgender community. Existing laws should be practically inclusive in protecting transgender people.

In India, transwomen have been able to create a space for themselves in the society. But transmen still remain hidden. What could be the reason for this? Living in a patriarchal society, transgender women who are mostly born as men find ways to come out and choose a life for themselves. Being born as a woman biologically a transgender male finds it difficult or impossible to come out and live in their true identities as a man. Being in a womanâ&#x20AC;&#x2122;s anatomical gender blocks his freedom in so many ways.

Please throw light on the activities of your organization Sahodari.

Sahodari is a small organization which functions in an informal way with the help of volunteers and friends. Being small and with no funds, we have done a tremendous work and created impact for the betterment of Transgender peopleâ&#x20AC;&#x2122;s lives which even an NGO with a million dollar fund could not do. Sahodari focuses on saving people from suicide, inspiring them with a hope for a good life, providing them with the proper guidance and support and be the bridge for providing education and employment opportunities for transgender people.

The bill introduced by Shashi Tharoor to decriminalize Article 377 was defeated in the Parliament once again. What could be done to sensitize people to be more accepting of different identities? Same sex love is seen as something imbibed from the West. Love cannot be criminalized. If it is, then our culture is barbaric and we are inhuman. Section 377 violates human rights. More result oriented sensitization strategies need to be initiated to inform people, create awareness and understanding about LGBTQI people.

What is your vision for the future of transgender community in general? To be accepted in their families as any other child, loved, protected and assured full support in education and allowed to pursue the career they dream about, the person they wanted to be. Only family acceptance will put an end to the problem of transgender people becoming sex workers and beggars for their livelihood.

April 2016 I 55

ECOLOGY

Time to conserve

India has 15.26 million hectare area under wetlands, which is approximately 4.6 per cent of her land area. Despite their wide ranging services, it is estimated that nearly 30 per cent of the natural wetlands have been lost in last three decades.

Sagarika Ranjan rrant weather conditions make us think whatâ&#x20AC;&#x2122;s going on rather what has gone wrong. Discussions on climate change, banning CFCs, deforestation, overutilization of resources and the like are often abuzz all over the world. However, among these obviously important aspects natural imbalances, we tend to forget a critical balancer of

56 I April 2016

nature. We are talking about the sad phenomenon of the loss of our wetlands. Certainly not a very familiar term but the repercussions of its loss are huge. For instance, depletion of wetland ecosystem will cause serious damage to water cycle, carbon cycle and the nutrient cycle. Wetlands loss will widen the climate change crisis because this ecosystem functions as a major natural carbon sink apparatus and one of the successful natural regimes to counter climate change

agents; from global warming agents to air pollutants, especially the Suspended Particulates Matters/ SPMs in air in the cities. Recent flash floods in Chennai, Guwahati, Patna, Delhi, Ahmedabad, Mumbai and other cities have allegedly occurred because of the illegal encroachment and corrupt plan structure for the wetlands. So, what are these wetlands? Wetlands are the ecosystem where the water table is at or near the surface level, or the land is covered by shallow layer of water.

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The Ramsar Convention defines wetlands as: “Areas of marsh, fen, peatland or water whether natural or artificial, permanent or temporary, with water that is static or flowing, fresh, brackish or salty, including areas of marine water the depth of which at low tide doesn’t exceed six meters.” The wetlands may incorporate riparian or coastal zones adjacent to the wetlands and islands or bodies of marine water deeper than six meters at low tide lying within wetlands. Wetlands are normally of around 42 types which fall under three broader categories as Inland Wetlands, Marine; Coastal Wetlands and Man-made Wetlands. The Ramsar Convention includes ‘Man Made Wetlands’ as Aquaculture, Farm Ponds, and permanently or temporarily inundated agricultural land such as rice paddies, salt pans, reservoirs, gravel pits, sewage farms and canals. Environmentalist with the UNDP, Kumar Deepak says, “There is a need for structural wetland governance in India. The loss of these natural gifts results

in grave damages to not only the environment but economy and society as well. There are several small communities that dwell around these wetlands and depend on them for their livelihood. Wetland loss can cause marginalization of these communities adding to poverty of the nation as a whole.” Wetland depletion will result in the collapse of those natural infrastructures that can help meet a wide range of policy objectives. This gift of nature is a natural water purifier and can purify impurities as critical as arsenic, sulphur, lead and the like thus helping improve the quality of available water. A healthy wetland ecosystem, on the other hand, can add to the efforts of climate change mitigation and adaptation, support health as well as livelihoods, and contribute towards local development and poverty alleviation. Statistics point out that we are fast losing this precious environmental boon. National Wetland Atlas, 2011 states that India has 15.26 million hectare area under wetlands, which is approximately 4.6 per cent of her land area. Inland wetlands

account for 69.22 per cent of this bulk, which is approximately 10.56 million hectares. Despite their wide ranging services, inland wetlands continue to degrade rapidly. As metioned earlier, an estimated 30 per cent of the natural wetlands have been lost in last three decades only. India has been a signatory to the Ramsar Convention that designates a wetland as ‘Wetlands of International Importance’ since February 1982. Still we have just 26 designated wetlands of International Importance constituting a total area of 6,89,131 hectares whereas United Kingdom has 169 Ramsar Designated Wetlands. Chilka Lake in Orissa, a Ramsar Designated wetland provide the basis of rich fishery which generates direct economy of US$17.3 million annual revenues, constituting 6 per cent to the State Foreign Exchange earnings. Loktak Lake in Manipur is another significant wetland body and yields 1,500 tonnes of fish each year. Kumar Deepak explains, “Being an Environmentalist I work on estimating the gross monetary value of such wetland ecosystem.

Loktak lake in Manipur is largest freshwater lake in the north-east and supports a large number of people www.governancetoday.co.in

April 2016 I 57

THE CRITERIA FOR IDENTIFYING WETLANDS OF INTERNATIONAL IMPORTANCE

Under the Ramsar Criteria, wetlands should be selected for the Ramsar List on account of their international significance in terms of the biodiversity and uniqueness of their ecology, botany, zoology, limnology or hydrology. In addition, the Criteria indicates that in the first instance, wetlands of international importance to waterbirds at any season should be included on the Ramsar List.

Group A: Sites containing representative, rare or unique wetland type Criterian 1

A wetland should be considered internationally important if it contains a representative, rare, or unique example of a natural or near-natural wetland type found within the appropriate biogeographic region.

Group B: Sites of international importance for conserving biological diversity Criterian 2

Criterian 3

Criterian 4

Criterian 5 Criterian 6

Criterian 7

Criterian 8

Criterian 9

Criteria based on species and ecological communities A wetland should be considered internationally important if it supports vulnerable, endangered, or critically endangered species or threatened ecological communities

A wetland should be considered internationally important if it supports populations of plant and/or animal species important for maintaining the biological diversity of a particular biogeographic region A wetland should be considered internationally important if it supports plant and/or animal species at a critical stage in their life cycles, or provides refuge during adverse conditions Specific criteria based on water birds

A wetland should be considered internationally important if it regularly supports 20,000 or more water birds A wetland should be considered internationally important if it regularly supports 1% of the individuals in a population of one species or subspecies of water bird Specific criteria based on fish

A wetland should be considered internationally important if it supports a significant proportion of indigenous fish subspecies, species or families, life-history stages, species interactions and/or populations that are representative of wetland benefits and/or values and thereby contributes to global biological diversity A wetland should be considered internationally important if it is an important source of food for fishes, spawning ground, nursery and/or migration path on which fish stocks, either within the wetland or elsewhere, depend Specific criteria based on other taxa

A wetland should be considered internationally important if it regularly supports 1% of the individuals in a population of one species or subspecies of wetlanddependent non-avian animal species

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The Economics of Ecosystem & its Biodiversity (TEEB) is a model developed under United Nations Environment Program, to estimate the monetary significance of such wetland ecosystem. I realize that there is massive ignorance about the significant economic values being rendered by the wetland ecosystem and the public has hardly been informed about the benefits of wetlands.â&#x20AC;? He further informs that the poorest and most marginalized rural communities are the biggest potential beneficiaries of the wetlands. Such ecosystem helps us to create a climate resilient environment by regulating the local climate. Wetlands are the natural kidney, among the largest water purifying aquifers. Wetlands work to balance the gross underground water table and act as a sink to the Green House Gases. However, ignorant of these facts our policy makers and planners are more concerned about the short economic gains and in the process they are over-looking long term gross economic values of the wetlands. The recent assessment of TEEB 2010, considering 22 ecosystem services estimates the annual average wetland values at Rs 22,24,350/ Hectare which makes the ecosystem services values for the entire wetlands in the country (105,64,899 Hectares), around Rs 23 lakhs crores annually. Recently, during the 12th Conference of Parties to the Convention of Biological Diversity in 2014 in South Korea, Ministry of Environment, Forest & Climate Change issued The Economics of Ecosystem & its Biodiversity/ TEEBS India Initiative (TII) which would assess the gross economics of wetland Ecosystem and its Biodiversity by putting value on the four major ecosystem services viz: Provisioning, regulating, cultural and supportive. Recognizing Ecosystem services, valuing ecosystem services and capturing ecosystem services are three major areas of interventions. Talking on the conservation of www.governancetoday.co.in

this important part of our ecosystem, Kumar Deepak says, “Wetlands are the solutions to water security. They are offering multiple ecosystem services supporting water security.” The good news is that the importance of the saving wetlands has dawned upon policy makers and several steps have been taken to mitigate the loss of these vitals of our ecosystem. For example, Wetlands (Conservation & Management) Rules 2010 prohibits illegitimate use of wetlands areas under demarcation. The Central Wetland Authority has been set up for the purpose of enforcement of rules. This is the prior responsibility of the local people who are the potential beneficiaries of the economic and ecological values of the wetland habitat to protect and conserve it. For effective management, the Government of India has merged the National Wetlands Conservation Program and National Lake Conservation Program under single umbrella of National Plan for Conservation of Aquatic Ecosystems (NPCAE). This is a Centrally Sponsored Program which shares funding pattern of 70:30 for whole country except North East which has the central Share of 90:10 in the 12th Five Years Plan. However, sources explain that most of the funds under NPCAE remain unused all because there is a lack of serious vision. The State Governments, on

Mangroves like Pichavaram maintain the delicate balance of flora and fauna

their part, need to work on a proper management action plan which is inclusive of demarcation of boundary; construction of embankments to prevent further encroachment; dredging of silted areas; carrying forward the scientific research on contour mapping plan; catchment areas upgradation plan, besides water quality and floral and faunal studies. “There is an urgent need to address the comprehensive plan structure to rejuvenate wetlands ecosystem. We must assess the socio-economic significance of the economics of the wetland ecosystem and its bio-diversity. There is an urgent need to introduce diverse and applied awareness methodologies to understand the

Chilka lake in Odisha is the largest lagoon in India with over 150 migratory birds www.governancetoday.co.in

potential economic and ecological benefits,” explains Kumar. In 2011, the Livelihood Funds, a Carbon Investment Fund was initiated by Danone, the Ramsar Convention on Wetlands and the International Union for Nature & Conservation (IUCN), in association with a local NGO named Nature Environment and Wildlife Society. The objective of the fund is to address climate change issues while improving the lives of the local communities. As per the project, 16 Million mangroves are being planted in the Indian Sunderbans. This project expects to capture 671,000 tonnes of Carbon over 20 years, transforming into carbon offset credits for livelihoods. ‘Wise Use’ approach was promulgated by the Ramsar Convention as one of the guiding principle for managing wetlands ecology, said Kumar, elaborating that ‘Wise Use’ of wetlands involve their sustainable utilization for the larger benefits for the socially and economically marginalized, while being fully compatible with the natural properties of the wetlands ecosystem. The Wise Use Principle promotes stakeholders participation and transparency in negotiating trade-offs and determining equitable outcomes for wetlands conservation while encouraging maintenance of environmental, economic and social sustainability. April 2016 I 59

POLICY

Realty regulator finally becomes a reality The much-awaited legislation is aimed at protecting the interest of the home buyers and bring in transparency to the system Ramesh Kumar Raja

n what could finally turn out to become a reality for the existing and future homebuyers of India, both the houses of Parliament recently gave a green signal to the much-awaited Real Estate (Regulation and Development) Bill, 2013. The stage is now all set with the ball in President Pranab Mukherjeeâ&#x20AC;&#x2122;s court to put a final stamp on the Bill to convert it into an act. The development, which had been long overdue for political reasons, is itself extremely important for all; buyers, developers and the realty sector as well which has been reeling under the heavy burden of misconduct for a long time. The Bill, which aims at protecting the interest of the buyers and bring in transparency to the system, has been waiting in the wings for the nearly 10 years. Strange though it may sound, but Indiaâ&#x20AC;&#x2122;s Rs 12 lakh crore real estate sector was a largely unregulated sector till date and would only now get a regulator as a result of the Bill. The legislation even though not full proof would guard the home buyers from any unscrupulous activity of builders and would bring in the much-needed confidence and investment in the real estate in India. As per the proposed law, each state will get a real estate regulator who will help in settlement and imposition of compensation. All residential and commercial projects will have to compulsorily be registered with the regulator so that buyers can have access to valid projects. Even the ongoing

60 I April 2016

The proposed body will regulate both residential and commercial projects

projects that have not received the completion certificate will be covered under the bill. Without a prior registration with the real estate authority, developers cannot advertise or launch projects. Besides, the developers will have to sell property on the basis of carpet area and not super area. In order to ensure transparency about the projects, the developers will have to disclose layout plans, submit clearances and name the associates, architect, contractor and others with the regulator. For timely completion of the projects, promoters will have to deposit 70 per cent of the amounts released from the buyers in a separate bank account within 15 days, for construction purposes. Consent of two-third buyers will be required to alter plans, structural designs and specifications of the building. In this case, each buyer, no matter how many properties they hold in one project, will be counted as

one vote only. Developers will be responsible to rectify structural defects and refund money in cases of default. In order to save buyers from any sort of dupery, the brokers will also have to be registered with the real estate regulator; non-compliance of which will be punishable. Importantly, the developers will have to deliver projects on the promised date mentioned by them. In case of failure of timely delivery of projects, the buyers can claim refund with interest and compensation. In cases of violation of rules by the developers, projects will be de-registered and attract heavy penalties. Non-compliance will invite fine up to 10 per cent of project cost and misinformation will cause a fine of 5 per cent of project cost. Meanwhile, the fine for the agents is Rs 10,000 for each day during the tenure of violation of provisions. The loss in taxable income caused by www.governancetoday.co.in

builders asking the buyers to pay certain amount in cash will now be curbed, thus eradicating corruption. The legislation will regulate both residential and commercial projects. Replying to debate on the Bill, Union Urban Development Minister M Venkaiah Naidu said the legislation envisages that “What you are committing, what you are promising, please fulfil. What you are promising through advertisements, please fulfil that. That is the purpose of this bill.” The minister also sought cooperation from the states for faster clearances to projects to make this Bill, which will override all state legislations, a success. “We are trying to make the beautiful advertisements given by developers in front page of newspapers dutiful. Our ultimate intension is to ensure consumer

satisfaction. Once the Bill is notified, you will get more investments in the real estate sector, early clearances and property prices will come down,” Naidu stated. The legislation, which finally saw the light of day, has been warmly welcomed by different industry bodies. While FICCI called the passing of the Real Estate Bill as a landmark step towards enhancing the credibility of realty sector by bringing in transparency and accountability in execution of projects, ASSOCHAM said it would help in resolving key issues that are hampering the growth of the real estate sector. FICCI President Harshvardhan Neotia said the passing of Bill should enable timely approval and execution of projects, which will raise the confidence of consumers and also give a huge boost to the growth of real estate

sector. ASSOCHAM President Sunil Kanoria, on the other hand, felt the Bill would lead to institutional reforms in land acquisition, approval processes and taxation that are much needed to expedite development of affordable housing. According to Kushagr Ansal, director of Ansal Housing, “The developers will now have to park 70 per cent of the amount collected from the buyers of the project in a separate bank account. Also, marketing and selling of the projects will be based on carpet area basis and not super area basis, thus justifying the amount which the buyers pay for a property.” Vikas Bhasin, MD of Saya Group, feels, “With the new amendments in place, even the existing projects will be counted in for justice. The market sentiments will now witness a huge boost and gradually the

The legislation comes at a time when potential purchasers are simply avoiding under-construction projects, drying up a source of interest-free funds for debt-ridden realty firms

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April 2016 I 61

Confederation of Real Estate Developers’ Associations of India has demanded that existing projects should not be brought under the new legislation

demand for housing in the country will pick up pace.” As per Rakesh Yadav of Antriksh India, “With the President to give a final word on the Bill, there will then be a sudden filtration process which will become visible where all the dishonest players in the sector will become eradicated.” Ashok Gupta, CMD of Ajnara India, said, “It is very imperative to understand that the demand and respect of real estate sector has been moving downward for several years now attributing to the negatives pertaining in this sector such as fraud committed by several builders, possession delays and absence of a monitoring body, and this will continue if proper action is not taken. With this bill in place, every state will have a regulator who will be continuously supervising and monitoring. Moreover, the projects will now be completed on time and developers will have to submit all the layouts, plans and documents with the regulator 62 I April 2016

who will ensure transparency and hence, customers will feel more secure while transacting.” Confederation of Real Estate Developers’ Associations of India (CREDAI), on the other hand, has demanded that existing projects should not be brought under the new legislation. “Bringing ongoing projects under the legislation would mean stopping the work and ensuring the compliance of ongoing projects with the new legislation. This is not only time-consuming but also poses insurmountable difficulties in determining the nature and scope of regulation for ongoing project,” it said in a statement. It may be noted that without a tough housing regulator, it is difficult to differentiate a good builder from a bad one. Such a body would therefore be bad news only for the unscrupulous ones. The legislation comes at a time when potential purchasers are simply avoiding under-construction projects, drying up a source of

interest-free funds for debt-ridden realty firms. The Bill will also ensure that unreliable operators and land grabbers/investors are screened. As a result, there will be fewer competitive bidders vying for the limited supply of land. That will check land prices. Timely completion of projects also means there would be a steady increase in supply of homes. Timely completion of projects also means there would be a steady increase in supply of homes. All these factors will gradually bring down home prices and increase demand. That will be good for the overall economy too as the housing sector has strong backward (cement, steel and other building material industries) and forward (furniture and furnishings, interior decoration, electrical and electronics) linkages with other industries. That would also mean creation of more jobs. ramesh@governancetoday.co.in

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EDUCATION

India needs a dedicated institute of â&#x20AC;&#x2DC;data scienceâ&#x20AC;&#x2122;

Dr KJS Anand

very successful search on Google typically generates several megabytes of data from a single user, which on aggregation from around the world makes it several petabytes of data in a single day. That is only Google, and then there are companies like Apple, E-Bay, Uber, Amazon and so many more that churn huge quantum of data, most of which is extremely secure private data on which tactical as well as strategic decisions are taken primarily from revenue enhancement or risk mitigation stand point. Several government agencies also generate piles of data for public transactions, expenditure or consumption at macro as well as micro levels. As a result, there is significant increase in the demand for organizers, analysts, decision www.governancetoday.co.in

makers or algorithm writers who could work on such data and drive actionable solutions by using tools, techniques, methodologies and domain expertise. The truth is that there is a massive dearth of dabblers as well as experts in each area. If 1960s was a period for setting up Institutions that catered to Management and Technology, why is it that the Indian governance is still driving the same anachronous mandate? The cost of bringing up a few new IIMs was more than Rs 7,000 Crores in India; some South East Asian Countries have also made significant investments from their education budgets. As the future demands would need absolutely different skills which are not taught at management schools, the registrations for Post Graudate courses at Management Schools in Asia have already fallen

significantly in the recent years following the trend of the USA and Europe. There is a need to debate the choice of federal investment into appropriate institutions that can cater to the emerging skill needs and boost the Economy in decades to come. Experts in data analytics not only earn more than 200,000 USD plus as an annual cheque, they can predict patterns overwhelmingly correctly when it comes to getting the sales forecast or risk likelihood right to help guide their organizations towards constructing a better strategy that drives greater profits. For example, just by analyzing the kind of purchases done by different subgroups over a period of time, data analytic experts can predict when and what such people will shop and even how they would pay. Large data sets are now April 2016 I 63

generated in science, commerce and society. Data scientists and data analytics experts are therefore in demand from e-commerce organizations like Amazon, Flipcart, Snap deal, Product based MNCs like Microsoft, Honeywell and by Service based Data Analytics companies like Mu-Sigma, KiE Square, Fractal Analytics, Impetus, TCS etc. Most e-commerce platforms today have dedicated and well employed departments of data science which form the bedrock of the organization’s policies and strategies. Data science for business as a concept first gained currency in the US during the first decade of the 21st century. The concept made its entry into India relatively later, and the demand for data analytic experts has started to rise only in the past 4-5 years which saw the emergence of new startups in the field of e-commerce, bringing about a major shift in the way items are sold and businesses are conducted across the board. Data science is one of the most advanced concepts of statistical education. A number of engineers and management experts are today turning to this field for its imaginatively interesting scope and the bright career options it provides. This field is set to grow dramatically in the next ten years and we need to produce a large number of data analytics experts to meet the growing demand. The demand is also emerging from large multinationals which are outsourcing their data mining jobs to relatively inexpensive centers like South or East Asia. Data analysis today is also radically changing the way marketing is strategized and politics is conducted. Data from social networking sites like Twitter can make or break ad campaigns and political initiatives. Politicians in the west today keenly follow the trends on social media to get an idea of which direction the wind is blowing. If 20 million people across Europe tweet in support of giving asylum to refugees, politicians will have a cue of the public sentiment. 64 I April 2016

If an advertisement gets major flak on social media for being ‘sexist’ or ‘racist’, and millions of people post with hash tags condemning it, the brand running that advertisement immediately takes a beating. Even the footfalls and the behavioral patterns of visitors to famous tourist spots determine the strategies of space expansion and others. And who crunches all the data on social media? It is the data experts that are dedicated to analyze such databanks sitting in the back offices of Twitter, Google Facebook or scores of agencies dedicated to analyzing data for their clients! While institutes here and there

that would stand valid for next 30 years at least. Our future is full of data, and more specialized domains are bound to emerge in the field. In these circumstances, producing only management and engineering graduates would not be sufficient. As more and more activity shifts to virtual platforms, data analysis will become all the more important. Considering this, there is a need in India to have a dedicated institute that is in sync with the actual requirement from the industry along with being capable of bridging the current gap between demand and supply. IMS Noida has established a

e-commerce is a big customer of data analysts and data scientists

are today offering certificates and courses in data science, there is no dedicated Institute or School of data science in India currently that can produce internationally competent data mining experts, promote research in the field and encourage more people to take this up as a career option. Such an institution will also need a dedicated and highly competent faculty, infrastructure and degree courses. While the government is investing heavily to develop new IIMs and IITs in the country, it is imperative to analyze the need for the future and invest on setting up futuristic Institutions of data science

dedicated centre for data science which aims to provide a platform for data researchers of different fields. The centre has been established as a long term strategic collaboration with the academia and the Industry. These collaborations are instrumental in offering courses and developing research programs which can set a new benchmark in Indian education and industry. The writer is the Executive Director of IMS, Noida. He is a distinguished Fellow of IIM Ahmedabad and a renowned Data Science and Analytics expert

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INTERVIEW PRATAP PADODE | FOUNDER AND DIRECTOR, SMART CITIES COUNCIL INDIA

URBAN PLANNING HAS BEEN GIVEN PRIME IMPORTANCE FOR THE FIRST TIME IN INDIA

ith population soaring and urbanization growing, India needs to discover smarter ways to manage intricacies, reduce expenses, increase competency, and improve the quality of urban life. Prime Minister Narendra Modi’s mission to build 100 smart cities, in a determined endeavor to elevate the urban landscape and make them convenient to reside, is said to be amongst the most aggressive projects launched for the development of the country. Going further, the project has drawn substantial backing and wide-ranging interest from various countries and international organizations who are interested in discovering investment and shared opportunities with India. Ramesh Kumar Raja had a conversation with Pratap Padode, the founder director of Smart Cities Council India, to understand opportunities and challenges associated with the ambitious project. The SCCI, a consulting firm which has been formed to promote development of smart cities, recently launched ‘India Readiness Guide’ to help urban planners understand the framework of a smart city and take steps to improve infrastructure, thereby setting the platform for collaboration between local government and technology providers. EDITED EXCERPTS:

How do you see the progress of Smart City project in India so far? For the first time since independence, urban planning has been given prime importance in a government’s prime mission. For the first time, a time bound plan has been laid out with a clear roadmap and milestones. For the first time, 97 cities have submitted their city development plans for a competition to vie for financing city plans. But this drive is most timely and essential. It comes when we have run out of options. Our cities have reached a point where a crumbling and ill planned urban infrastructure will hinder growth and therefore our engines of growth will start to sputter. Deficiencies in the existing city services need to be hastily provided for. Benchmarks need to be set for fulfilment of basic needs and amenities. Resources will come from a sharp reduction in the wastage that emanates from an apathetical administration. Technology can enable the detection of this wastage and it

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April 2016 I 65

can help identify the area and extent of reduction. The unique component of the smart cities mission has been the mandated citizen participation which has been to the extent of 12 per cent of the population of the 97 cities. Citizens have voted, endorsed, commended, suggested and have shown their participation in the future of their cities. Further the mandatory provision of involvement of citizen groups on the board of the special purpose vehicle which will be established to undertake the approved city development plan, ensures a continued participatory process.

India has gone in for converting existing cities into smart cities. Do you think it is the right approach or we should have created initial few smart cities anew? This mission is strategic as it lays emphasis on area based development which is envisioned to proliferate the entire city gradually. Once we have areas within cities which demonstrate the benefits of smart living, other areas will begin to emulate the success. Besides there is not enough money in our coffers to fund entire new cities for the migration flow which is going to take our urban population from current 377 million to 600 million by 2031. New smart cities take 15 to 20 years to build and need very deep pockets.

The investment requirement is huge for the project and PPP has been named as the preferred model for financing the project. But Indian experience in PPP projects is not rosy. Donâ&#x20AC;&#x2122;t you think it will make projects very risky in terms of financial closure? 66 I April 2016

Indian infrastructure has been built on the back of private capital and effort especially between 2003 and 2012 and the contribution was to the extent of 45%. The government was hoping for a replay of the same enthusiasm but given the experience of red tape and the reticence in settling disputes over payments, private capital has gone shy. PPP therefore will require the government to create an environment of trust which is going to be very difficult. Due to the same reason, the National Highway Authority of India has had to innovate a hybrid model of annuity where some risks are borne by the government to make it attractive for bidders. Similarly, city governments will have to win over the trust issues to attract private capital to PPPs.

Many experts believe that instead of trying to make smart cities the efforts should be instead made to make cities liveable with good basic amenities which is so lacking today. Where do you stand on this? Both are needed. One cannot comment enough on the deficiency in delivery of public services but that does not mean that tools to enhance the efficiency of cities should not be administered. Controlling wastage is one of the great benefits in smart cities especially because tools of measurement and accountability can be incorporated.

The ability of the public service bodies to implement and manage a tech based smart city is highly suspect. How can the manpower be improved to undertake such a task?

Manpower availability and training is one of the biggest challenges of the urban renewal mission. But we should not forget that our IRCTC which sells rail tickets online of an equivalent revenue as Flipkart is run by the railways or that BSNL, MTNL compete with private operators in delivery of internet services or that Aadhar card of now nearly 950 million contacts is one of the biggest databases in the world and is run by a public service institution. Having said that new models of motivation, skill training, capacity building will need to be devised and incorporated to attract the right talent to such positions in the future.

By when you think we would be able to see first few smart cities in existence? Which are the cities you feel are most prepared to put in place systems and infrastructure for necessary upgrade? Area based development will begin to show results in the next three years if not earlier. The pan city initiatives in the form of CCTV surveillance, WiFi availability, LED street lights are already being deployed but the ones which require a systemic change will take longer and the challenge would be to keep them consistently active with defined quality and sustain. Which are the business sectors which would generate maximum revenue from the project? In the short run, like I said earlier, CCTV cameras, LED lights, street poles, energy efficient products, consultancy services, urban planning services, power equipment etc. while in the long run, master planning services, construction equipment , building material, telecommunication products and services, waste management technologies and services, water management products and services and so on.

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POLICY

AADHAAR

A necessity or an obligation? Recently, Aadhaar Bill was passed in the lower house as a Money Bill which will ensure the targeted delivery of subsidies. No matter how good intentioned this Bill could be, the issues and questions surrounding UID scheme refuse to die as government fails to eliminate the glitches in the large scale implementation of country’s most ambitious social project.

Ritika Bisht inety seven per cent of adult population and 67 per cent of children have now been enrolled for Aadhaar with five to seven lakh people being added to the system every day; Finance Minister, Arun Jaitley announced while stating the importance of having an Aadhaar. To start with, seven years back nobody would have thought that Aadhaar, introduced by UIDAI (Unique Identification Authority of India), will assume such massive popularity among Indian population. The objective behind Aadhaar was to collect biometric and demographic data of residents, store them in a centralized database and issue a unique identity number to each resident. Many questioned its necessity in the presence of

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number of identity cards available with citizens as they did not see any point in having another one. This is when government came up with Jan Dhan Yojana and subsequent process of linking unique ID with various social welfare schemes to distribute the benefits. The plan worked and over the time Aadhaar proved to be potentially useful for reducing leakages in a large number of government programs. If it were not for Supreme Court order, Aadhaar could have passed as a mandatory requirement. In March 2014, Supreme Court had ruled that “no person shall be deprived of any service for want of Aadhaar number in case he/ she is otherwise eligible/ entitled”. Why abandon such a scheme that helps the government and people to ensure that welfare money reaches the concerned

beneficiary on a timely basis? Every system comes with flaws and same goes with the Aadhaar scheme. No doubt that some government programs benefit through the integration with Aadhaar, but Government certainly overstated advantages of this scheme in its bid to make Aadhaar authentication compulsory. Over the years critics have questioned its necessity as Aadhaar’s power to plug leakages is limited to select social welfare schemes. In some places Aadhaar has even proved to be the foremost issue in cases of delays in providing the benefit to the beneficiary. But most importantly, the collection of biometric data opens door to mass surveillance and in the absence of safeguards, it may even be potentially misused. Although the Lok Sabha has April 2016 I 67

passed the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Bill, 2016 as a Money Bill which would give statutory backing to collection, preservation and use of biometric data of individuals under the Aadhaar scheme, till the time government plugs certain obvious chinks in its system Aadhaar’s importance would not be convincing to critics as well as the people.

How beneficial? It all started with UIDAI providing unique identification number to all the citizens which would eliminate duplicate and fake identities and can be verified in a cost-effective manner. The document (‘UIDAI Strategy Overview’) stating the advantages of UID number mentioned that the mechanism would help reducing the transaction costs for the poor as identity has to be proven only once. The UID would change the way government exercise social welfare programs by including communities who are deprived of subsidies due to lack of identification. This practice would help government to shift from indirect to direct benefits and verify whether intended beneficiaries are receiving the subsidies. Arun Jaitley has recently mentioned that targeted subsidies of LPG consumers through Aadhaar cards had resulted in over Rs 15,000 crore of savings at the Centre. Furthering the UID necessity he added that four states, which had started PDS delivery by a similar exercise on a pilot basis, had saved more than Rs 2,300 crore. Single proof of identity has proved to be useful in seeking benefits from across different government’s development schemes. However, with the benefits being said and seen, it is time for government to move forward to drawbacks and provide an explanation and solutions.

Answering critics and security issues The biggest issue with Aadhaar is the unreliability of biometrics and 68 I April 2016

possible breaches of confidentiality. Biometric information is made up of unique physical traits of a person. Globally, concerns have been raised on protection of privacy and civil liberties with great deal of security measures being taken to prevent its misuse. Tathagata Satpathy, a lawmaker from Odisha, says, “It has been showcased as a tool exclusively meant for disbursement of subsidies and we do not realize that it can also be used for mass surveillance.” Raman Jit Singh Chima, global policy director at Access, said the proposed Indian law lacked the transparency and oversight safeguards found in Europe or the United States, which last year reformed its bulk telephone surveillance program. UID seems to act as a bridge between the silos of information, facilitating the convergence of databases. There is a possibility that the information will become vulnerable to access by not only the state but also private players, thus leading to breach of privacy. This is indeed an issue of concern. There are other critics who have question the whole procedure of undertaking biometrics information. “All emphasis is on enrolment, not on how it’ll be used. Besides the duplication, the whole biometric thing is so illegal,” said legal expert Usha Ramanathan. Other than security, issues of delays, authentication failures, connectivity problems especially in rural and remote areas have been recorded where most of the targeted beneficiaries live. The purpose of Aadhaar, for which it was initiated, fails at these places as they are least prepared for this kind of technology. According to a national daily quoting Economist Jean Drèze, “I have seen some of this damage at close range in Jharkhand, where Aadhaar was supposed to prove its mettle. Aadhaar applications (in the PDS, MGNREGS, and even the banking system) have had poor results in Jharkhand, and caused much disruption. For instance, MGNREGS functionaries

have cancelled job cards on a large scale for the sake of achieving “100 per cent Aadhaar seeding” of the job-cards database. MGNREGS workers have been offloaded by rural banks on Aadhaar-enabled “business correspondents” who proved unable to pay them due to poor connectivity. And the proposed imposition of biometric authentication at ration shops threatens to disrupt recent progress with PDS reforms in Jharkhand.” “The purpose of the bill is not for collateral purpose but to ensure that benefit of public revenue reaches the targeted beneficiary,” said Arun Jaitley. If this is really the primary aim then government needs to start undertaking serious evaluations of the services provided at different areas and implement necessary solutions instead of just bragging about number of Aadhaar enrolments.

Lessons to be learnt A key public policy initiative such as UID scheme concerns a billion plus population and thus it needs to go through a well debated policy evaluation in context of claims laid by UIDAI. If Government is bent upon making Aadhaar a one-stop solution for distributing and tracking the social welfare schemes, than reviewing global experiences of identity projects could be one of the initial steps in preventing the violations of civilian rights and liberties. International experiences on technological efficiency, centralized database, preventing breach of privacy can help government to provide answers to critics and citizens who have been skeptical about the usage of data. With its flaws and advantages, the crucial question would now be how long Aadhaar will survive the ire of critics in its present form and when will it be able to answer the long query list, considering the case that 97 per cent of the population has already enrolled in the system. ritika@governancetoday.co.in

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ART & CULTURE

Indian deities in Japan

Ganesha, or Shoten, Unryu-in, Kyoto

Garuda, or Karura, Daiyuzan-Saijoji, near Odawara

Hawan or Homa, called Goma in Japan, Takahata Fudo Temple, Tokyo

henever an Indian thinks of Japan and Japanese culture, what he conjures is a highly prosperous country with very peaceful society that practices Buddhism. Whether it is the giant Buddha statue of Kamakura, shrines of Kyoto, or monks in saffron robes, all tend to strengthen this perception. What is not visible to an average Indian is that a large number of prominent Hindu deities are worshipped in Japan. In his nearly two decades long research, noted film maker Benoy K Behl found that many of the traditions that have faded in India, have been preserved zealously by Japanese and adapted so nicely in their way of life. Recently, a documentary on the subject was screened in New Delhi which underscored the rich and ancient cultural relation between India and Japan. The film “Worshipping of Indian Deities in Japan” has won the ‘Best Production House (Documentaries)’ at the 3rd Noida International Film Festival. www.governancetoday.co.in

Lakshmi, or Kichijoten, Kurumadera Temple Museum, Kyoto

April 2016 I 69

Saraswati, or Benzaiten, Yoshiwara Jinja, Tokyo

Lakshmi, Indra, Brahma, Ganesha, Garuda are some of the most prominent Hindu deities that are worshiped in modern day Japan. Even deities we seldom worship in India, such as Vayu, Yama and Varuna are still worshiped in the land of the rising sun. Goddess Saraswati, who is named Benzaiten in Japan, is perhaps the most popular and has hundreds of temples dedicated

to her. What is amazing is that Japanese still associate Saraswati with water which is something we Indians have nearly forgotten. Most priests of the temples in Japan confirm that various deities that are worshipped there today are basically Indian gods. They also feel that the ancient Indian monks brought with them the traditions of worshipping these deities who are controllers of certain values and

The Saraswati, or Benzaiten Shrine, Bentenshu, Osaka

functions. So it is fairly common for Japanese students to visit the Unryu-in shrine in Kyoto to pray to Ganesha, known as Shoten, for good luck. Among the other major Hindu deities that are worshipped are Lakshmi, or Kichijoten, Agni, or Katen, Brahma, or Bonten, Indra, or Taishakuten and Mahakala, or Daikokuten Unryun. These have dedicated temples and their statues are found in multiple museums and

In Japan, â&#x20AC;&#x2DC;Sujataâ&#x20AC;&#x2122; is a major brand of dairy milk products. The company draws its name from the woman named Sujata who gave sweet rice milk to the Buddha, with which he broke his period of austerity, before he gained Enlightenment.

70 I April 2016

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art galleries across the country. Tradition of Havan or Homa, or (Goma in Japanese) is also very strong in Japan which is widely practices in Shingon and Tendai sects of Buddhism and Homa is associated with chanting of Sanskrit sutras. The practice of Homa in these sects bears similarity with Agni worship among Hindus and with Tantric traditions. Followers of the Shingon sect perform their worship in 1,200 temples throughout Japan. Another aspect of the cultural ties between India and Japan is linguistic. Not many people know that Sanskrit has had a strong influence on the development of Japanese Kana. When Japanese

Mahakala, or Daikokuten, Unryu-in, Sennyuji, Kyoto

Agni, or Katen, Daigoji, Kyoto

Sanskrit Beejakshara, Sensoji, Tokyo

Siddham, 5th century Sanskrit script, Gokokuji, Tokyo

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started learning Japanese from around 8th century AD, they studied it in Siddham script (Shittam in Japanese) which was the script for Sanskrit at that age. This script is still preserved in Japan and in Koyasan school Sanskrit is taught in this very script. ‘Beejaksharas’ of Sanskrit is much revered in Japan and are given great importance. Each deity in Japan has a ‘Beejakshara’ which is marked prominently in the temple of that deity.

April 2016 I 71

INTERVIEW

PROSPERITY OF HEART AND MIND SHOULD TAKE PRECEDENCE OVER MATERIAL WEALTH Benoy K Behl has devoted much time and energy in bringing to light the deep cultural and religious relation between India and Asia in general and between India and Japan in particular. Prior to his work, the practice of worshipping of Hindu deities in Japan was nearly an unknown thing for us Indians. In a conversation with Anand Mishra, Editor, Governance Today, Benoy delves on the various facets of India’s cultural relation with Asia. EDITED EXCERPTS:

How did the idea of making a film on the worship of Hindu deities come to you? Actually for almost 40 years, I have been documenting the culture of India and Asia through which I have been able to reveal the close cultural connection that India has with many countries in Asia. I have been working on Japan for almost 25 years, on and off. While researching, I always take photographs and shoot videos. These become the vehicles through which I pass on the knowledge. The same was the case with the film on the subject of the worship of Hindu deities in Japan, which has been exhibited in various places like Delhi, Kolkata, Chennai, Hyderabad and Bangalore. It will be taken to Tokyo, Kyoto and Nara when our external affairs minister visits Japan the next time. So, it is always a composite thing for me; research, analysis, film, photography, and book. The book on the subject, which has been sponsored by the Japan Foundation, would be coming out towards the end of this year or early next year.

Is it not unique that all this Hindu tradition and gods were taken by Buddhists to Japan? What do you think of it? 72 I April 2016

Actually, the concept of Hindu or Buddhist is a colonial construct. The entire history of ancient India basically comes from inscriptions. And every family of India since ancient times has been worshipping Lord Shiva or Buddha or Tirtahnkar. So the idea that these are different religions is a European and colonial construct. They came from a land which had separated religions and had religious wars. For them it was hard to understand a culture which didn’t have any of these. So, we did not have anything like Buddhism or Jainism. It is also important to understand that we don’t have Gods in Indic philosophy. Actually, we have deities which are basically personifications of the qualities that are inside us. When you look at these deities, you are moved by their beauty and that

awakens those qualities inside yourself. They are means to self emancipation for awakening all the beautiful thoughts that are already within us. And since they are not Gods, they are not mutually exclusive and there is no rivalry between them. Therefore, when you go to any Asian country, you will find that there is no difference between Hindus or Buddhists. For example, in Thailand, you will find most Indian gods being worshipped by millions of Buddhists. You find the largest statue of Vishnu at the new Bangkok airport. So these are western terms. That’s why in Japan there are Hindu and Buddhist deities.

There is a notion that the export of Indian culture was primarily through Buddhist monks. What is your take on it? While monks played a huge role, a lot of culture was taken abroad by traders. Indians have been known to have a very deep and philosophical vision of life permeating all classes of people. Even a lay person here is well versed with concepts as deep as the illusory nature of material world. In any western country, only a university professor would be able to talk on such issues. India, on the other hand, had democratized philosophy since the BC period in which sophisticated philosophy of life had reached www.governancetoday.co.in

An art ambassador

enoy K Behl is a film-maker, art-historian and photographer, known for his tireless and prolific output of work over the past 40 years. He has taken over 46,000 photographs of Asian monuments and art heritage and has made 132 documentaries which are regularly screened at major cultural institutions worldwide. His photographic exhibitions have been warmly received in 54 countries around the world. He holds the Limca Book Record for being the most travelled photographer. His films, including 26 documentaries on ‘The Paintings of India’, 26 documentaries on ‘The Sculpture of India’ and 26 documentaries on ‘Spectacular India’ have been nationally telecast on prime time in India, as well as repeat telecasts. These have also been screened at scores of universities and museums in several countries around the world. In 2008, National Geographic magazine carried an 18-page story about ancient Indian art revealed through Behl’s photography to the world. He is the first Indian about whose work National Geographic magazine have carried a story. BBC World News has also carried 3 major stories about Behl’s pioneering work in India and Vietnam. Behl’s recent work on Yoga has made a notable contribution to the knowledge of the subject. On International Yoga Day 2015, his exhibition on the subject was held in 20 countries and his film on Yoga was shown in Indian Embassies and High Commissions in 50 countries. Behl’s film on ‘Indian Roots of Tibetan Buddhism’, with interviews with HH Dalai Lama won the Best Documentary Producer Award at the Madrid International Film Festival 2015. It has also won two awards at international film festivals held in India. He has been invited to lecture by most of the important universities and museums around the world, which have departments of Asian art. His book on ‘The Ajanta Caves’ is published by Thames & Hudson, London and Harry N. Abrams, New York. His book on the Buddhist Heritage of Andhra Pradesh was published by the Government of Andhra Pradesh in 2014. Behl’s book on the Buddhist heritage of Afghanistan, Uzbekistan, Kalmykia, Tibet, China, Mongolia and Buryatia, was released in April, 2014 by H.H. the Karmapa. H.H. the Dalai Lama accepted an advance copy of the book at IGNCA in November, 2013.

even the poorest people. So, the Indian traders when they sat with the people in other countries, talked about philosophy. And those who heard them, wanted to hear more. In a sense, therefore, every Indian who visited abroad www.governancetoday.co.in

was an ambassador of Indian culture and was highly respected. For example, the King of Koocha, a central Asian province, now in China, married his daughter, named Jeeva, to an Indian trader Kumar, and the son of the

couple, Kumar Jeeva, went on to become the most popular name of Buddhism in China.

You have also worked on the Buddhist and Hindu April 2016 I 73

traditions in Southeast Asia. There has been such a deep interaction between India and this part of the world. But that entire connect seems to have been lost. How do you look at it? Well, Indians have been preoccupied with copying the west and therefore entire focus has been on west. We have forgotten that the Indian vision of ethics had spread to entire Asia. Take for instance the notion of Ram Rajya. This concept was accepted by every country of Asia and it continues till date. The kind of Thailand, for example, calls himself “Rama the Ninth.” All temples of Thailand have paintings of Ramayana and statues of Rama are found everywhere. So, the notion of kinship in whole of Asia was built on the life of Rama. So much so, Muslims of Indonesia celebrate Ramayana more than the Hindus of India. So, it is a cultural thing. Ramayana is a tale of ethics and ethical rule. Even Mahatma Gandhi motivated people by invoking Rama Rajya. Unfortunately, we in India have forgotten all of that. It is time to understand the cultural imprint of India on whole of Asia. In fact, I am right now making a film on Ramayana in South and Southeast Asia and I am making it because Ramayana is performed by more people, has been seen by more people over more centuries and in more countries, has impacted the lives of more people, and is the inherent part of the culture of more people than any other theater tradition of the world.

How and when in your opinion we receded from our cultural connection with the rest of Asia India remained one of the most prosperous countries of the 74 I April 2016

world till around 16th century. The Portuguese, the rulers of the seas, when they came to India in 16th century, wrote that there was no country like India and there were no cities like ones here. According to their writings, people were so well off that they couldn’t do without roses and ladies were laden with jewelry. In India they found high prosperity with honesty and compassion which came from the philosophy of Ahimsa. However, all of that declined with Europeans coming in and that is also the time when Indian cultural connections started to fade away. So, the European colonization of not only India but whole of Asia dealt a blow to the cultural connect, as it was blow to the economy as well as psychology and culture of the region.

Some of your most enduring works have been on the sculptures and paintings of ancient India. Don’t you feel we have been neglectful of our heritage? Of late there has been an increase in Indian art. I would say that even one hundredth of our heritage is enough to make us the richest in the world in terms of art and culture. When I was invited to present the art of Ajanta in all

major museums of the world, there was a unanimous opinion among art critics and art historians that it was the finest art of the human kind, till today. Such is the quality of ancient Indian art. What we need to understand is art is not a dead thing, it is alive. It is the quality of human beings that is expressed in art; an artist can only make himself. We need to re-inculcate in ourselves those qualities that can create such art. That’s what needs to be revived. Coming to the rise in interest in Indian art, I would say there was more interest during 1950s. Now there is no interest in any art and culture anywhere in the world. Now it has been reduced to a marketable commodity. The cheapest part of art is being taken and being sold as it is easiest to understand, is most colorful, and therefore most sellable. During fifties, there was more interest and India was taken more seriously. But we did not live up to our own expectation. We got disillusioned. There was a positive vigor then, which got lost.

What’s your suggestion for Indian society? Most importantly we need to realize what life is all about. Earlier, we were taught to focus on Dharma, the material success followed automatically. But today, material success has assumed primacy. We need to look back to our ancient history and see how material success can be earned through Dharma. In modern times, we should learn from Japan which has retained its culture, art and value system even as it has become such a rich country. Prosperity of heart and mind can engender material wealth and should take precedence over the same. We need to realize that we taught to the world the greatest human values before we got corrupted by the European colonialism. We need to revive the virtue of Dharma.

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