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CONTENTS

CIVIL SERVICE 3-9

COMMUNALISM 10-15

ECONOMIC AND SOCIAL DEVELOPMENT 16-18

EDUCATION 19-22

ELECTIONS 23-24

EMPLOYMENT 25-27

FINANCIAL INSTITUTIONS 28

INTERNATIONAL RELATIONS 29-33

JOURNALISM 34-35

MONEY 36-38

POLICE 39-40

PRIMEMINISTERS 41-43

RAILWAYS 44-45

TAXATION 46-51

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CIVIL SERVICE

ECONOMIC TIMES, JUL 7, 2017Retire non-performing officers above 50: Yogi Adityanath

NEW DELHI: Taking a leaf out of the Centre’s book, Uttar Pradesh Chief Minister Yogi Adityanath has asked for a review of the performance of all state government officers above the age of 50 by July 31 and said the non-performers or those facing any taint should be compulsorily retired.

Such officers can be told to hang their boots and go home by serving them a notice of three months and not citing any reasons for the move, UP’s new Chief Secretary Rajiv Kumar has said in an order to all departments on Thursday. Kumar took over as the Chief Secretary just few days ago after being brought back to UP from the Centre where he was serving as the Union Shipping Secretary. This order is being seen as his first big move to clean up UP’s infamous bureaucracy.

The Centre under PM Narendra Modi has been carrying out such review of central officers above age of 50 and retiring some in public interest. Replication of this exercise in UP could ruffle the bureaucracy there which is already facing a spate of transfers. The normal age of retirement is 60 years.

“Under Fundamental Rules -56, the competent authority at any time can serve a three-month notice to an official above 50 years of age and send him on compulsory retirement. No reasons need to be cited in the said notice,” says the order issued by Rajiv Kumar. He says in the order that though the provision has been there in the rule-books for long, the same has not been implemented in UP. “All department heads should conduct screening of record of officials above the age of 50 as in March 31, 2017 and complete the exercise by July 31,” Rajiv Kumar has said in the order.

The Modi government has been serious in taking action against non-performing officials to cut out dead wood or black sheep from its ranks as per a standard drill too. 30 Group A officers and 99 Group B officers had been sent on retirement in the past few months by the Centre after they completed 50 years of age. 24,000 Group A officers and 42,251 Group B officers were put under the scanner before the recent compulsory retirements while the government was looking into service records of another 34,451 Group A officers and 42,521 from Group B.

INDIAN EXPRESS, JUL 6, 2017MHA rejects request by two IAS officers unwilling to join UT

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Sources said both Garg and Sharma had cited personal reasons for not joining the Chandigarh

administration. Because there was a delay in the joining of the officers, IAS officer Kriti Garg

was asked to stay on until the new officer comes.

The Ministry of Home Affairs has dismissed the request plea of IAS officers Tanvi Garg and

Bansi L Sharma unwilling to join the Chandigarh administration. Both the officers are of

AGMUT (Arunachal Pradesh, Goa, Mizoram, and Union Territory) cadre. A month ago, they

were given orders to join the Chandigarh administration.

They were transferred from their respective Union Terriorties a month ago when they requested

through their respective governments not to join UT. KK Jindal, secretary personnel department,

said: “ We have been told that the Ministry of Home Affairs, which decides the matter in these

case has dismissed their plea and they will be joining Chandigarh soon after they are relieved.”

Sources said both Garg and Sharma had cited personal reasons for not joining the Chandigarh

administration. Because there was a delay in the joining of the officers, IAS officer Kriti Garg

was asked to stay on until the new officer comes. Sources said that Kriti wanted to stay but was

advised not to request as it was bound to be rejected.

Three IAS officers, including Dr SB Deepak Kumar, Secretary (Information and Technology),

Tapasya Raghav, SDM (East) and Kriti Garg, SDM (South) were transferred out on May 30.

Raghav and Deepak Kumar were relieved but Garg wasnt because the two officers who had to

join Chandigarh made this plea of not to join Chandigarh.

TRIBUNE, JUL 6, 2017Top-heavy bureaucracyPolitical interest served in unsanctioned promotions

The appointment of 21 additional chief secretaries in Haryana against the sanctioned six positions has taken flak from the Assembly’s Public Accounts Committee, which has cited an observation of the CAG from 2014 in this regard. The fundamental objection raised is over the additional cost to the state in view of their pay scales being equivalent to the Chief Secretary, though there are other more consequential implications too. To be fair, it must be noted that this

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is a practice being followed in nearly all states. Punjab has more than a dozen officers in that scale, besides 13 Directors-General of Police.

What is at issue here is the top-heavy administration. That means large salary packets being given out for little additional benefit. No corporate structure could sustain itself like that. Of course, governments cannot be run on corporate principles, but then it is also a fact that most state governments are barely sustaining themselves. One thing governments cannot escape is they run on limited budgets with unlimited demands on them. Punjab has been holding back on hiring lower staff even in departments where they are needed, essentially because it cannot afford the salary bill. That is affecting the quality of delivery of public services, whereas the top brass can hardly make contributions commensurate with their positions.

Most promotions at the top level happen to accommodate people lower on the seniority list at a higher position. That often is in accordance with the preferences of the political executive of the day. A large pool gets created to give flexibility of choice. And that is where the crucial question needs to be asked: Why this picking? No officer reaching that level can be — or deemed — incompetent, and should not even lack integrity. Simply observing seniority would ensure there is no incentive to follow a particular political line. The defence services have largely observed seniority — perhaps not recently — without disastrous consequences. And even pick-and-choose has not ensured perfect governance in states. It may be time to have a relook at the promotion policy, especially in the Central services that remain a useful legacy from the colonial past.

Top-heavy bureaucracy Political interest served in unsanctioned promotions 1 SHARES FacebookTwitterGoogle+EmailPrint Also in this section An ugly spat in Bengal The appointment of 21 additional chief secretaries in Haryana against the sanctioned six positions has taken flak from the Assembly’s Public Accounts Committee, which has cited an observation of the CAG from 2014 in this regard. The fundamental objection raised is over the additional cost to the state in view of their pay scales being equivalent to the Chief Secretary, though there are other more consequential implications too. To be fair, it must be noted that this is a practice being followed in nearly all states. Punjab has more than a dozen officers in that scale, besides 13 Directors-General of Police. What is at issue here is the top-heavy administration. That means large salary packets being given out for little additional benefit. No corporate structure could sustain itself like that. Of course, governments cannot be run on corporate principles, but then it is also a fact that most state governments are barely sustaining themselves. One thing governments cannot escape is they run on limited budgets with unlimited demands on them. Punjab has been holding back on hiring lower staff even in departments where they are needed, essentially because it cannot afford the salary bill. That is affecting the quality of delivery of public services, whereas the top brass can hardly make contributions commensurate with their positions. Most promotions at the top level happen to accommodate people lower on the seniority list at a higher position. That often is in accordance with the preferences of the political executive of the day. A large pool gets created to give flexibility of choice. And that is where the crucial question needs to be asked: Why this picking? No officer reaching that level can be — or

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deemed — incompetent, and should not even lack integrity. Simply observing seniority would ensure there is no incentive to follow a particular political line. The defence services have largely observed seniority — perhaps not recently — without disastrous consequences. And even pick-and-choose has not ensured perfect governance in states. It may be time to have a relook at the promotion policy, especially in the Central services that remain a useful legacy from the colonial past.

DECCAN HERALD, JUL 6, 2017Badge-wearing civil servantsKuldip Nayar ×BETWEEN THE LINESGovernment officers after retirement take to sanyas, but some courageous ones have spoken against the intolerant society that India is becoming. In their open letter they say, “it appears there is a growing religious intolerance that is aimed primarily at the Muslims.”

Apparently, there has been no discussion or mention about the sentiments of this letter. The BJP which sets the tone of society, probably did not want any discussion and let the matter die as it has. Yet, the fact remains that the Muslims do not get their due. They are 17 crore or 12% out of India’s total population of 1.2 billion. As Justice Rajinder Sachar’s report has pointed out, the treatment meted out to them was worse than what the Dalits go through.

The report is a decade old but none of its recommendations has ever been implemented, not even under the Congress. What it means is that a soft kind of Hindutva had spread into the country even before the BJP came to power. One expected the Congress to take up the points made by Justice Sachar. I understand that he even went to then prime minister Manmohan Singh to complain that if the government was not serious about implementing its recommendations, why did it waste his time and the time of other members of his Commission?

Manmohan Singh at the time expressed his helplessness. He reportedly told Justice Sachar that the bureaucracy seemed to have come in the way and what was promised to the Muslims remained only on paper. The report had hardly any adherent when the BJP came to power. The Muslims, once in a while, do recall the report to underline their grievances, but the media has shown no interest.

Even otherwise, the media has come to tilt towards Hindutva. The voice of pluralism is hardly audible. Things have come to such a pass that those who talk about pluralism are looked down upon and considered pro-Muslim for some personal gain. The BJP philosophy has come to prevail. The Congress which draws its connection with those who struggled for independence and its ethos of one country for all without distinction of caste or creed is not credible any more.

The dynasty rules the party and does not give space to anybody else. Even the Working Committee of the Congress, which used to be in the news, does not exist. One has never heard of

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the AICC or the party president’s elections. In an effort to let her son, Rahul, be an arbiter, Congress president Sonia Gandhi has seen to it that there would be no dissenting voice.

Senior members of the party openly express their disappointment that new and fresh voices are not entertained by Sonia Gandhi because she is keeping the seat warm exclusively for Rahul. He is so much the apple of her eye that even daughter Priyanka—she goes down better with the masses—has been pushed into the background.

Priyanka’s most powerful selling point is that she resembles her grandmother, Indira Gandhi. Never mind that Indira had many negative points. For example, the excesses committed during the Emergency when one lakh people were detained without trial. 

The Shah Commission, which held open sittings to bring out how the common man was maltreated, said in its report that the Emergency was imposed because Indira wanted to save her seat after Justice Jagmohan Lal Sinha disqualified her for six years. Instead of honouring the judgement, she changed the whole system of governance. Subsequently, she allowed her younger son, Sanjay, to effectively rule the country with the support of his red necks.

Back in those days, there were also a handful of serving and retired civil servants who dared to defy authoritative governance and suffered the punishment meted out to them for having shown courage during the Emergency. Indira was very particular that those who challenged her were sidelined.

The government of Narendra Modi is not about promoting one man and his idiosyncrasies. It is more about ideology, the Hindutva. That makes it much more ominous. One person can always be removed but ideas are harder to dislodge. That is the difference between totalitarianism and democracy. In the first, it is one person who tries to change the people. In the other, it is the people who change top rulers.

Hindutva vs pluralism

Unfortunately, today it is Hindutva versus pluralism. Despotism of one person has been replaced by the despotism of ideology. This can be seen in the way a 15-year-old Muslim, Junaid, was stabbed to death on his way back from a shopping spree to celebrate Eid. Those responsible for his killing first abused him on account of his religion.

What is tragic is that those who struggled for independent India do not count and the ones who were never near the frontlines are ruling the country. Where were the Hindutva voices when Nehru, Gandhi and Maluana Azad were caned by the people in solar hats?

There are some liberal voices who recall the independence movement and Mahatma Gandhi who led it, but the ruling party’s emphasis is on their philosophy which was looked down upon in a pluralistic country for which the nation was fighting.

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It is tragic to see that the civil servants themselves are wearing the badge of Hindutva. In UP, where the BJP has come to power, Chief Minister Yogi Adiyanath has transferred 26 top secretaries to the government to make way for the people he considers nearer to his party’s philosophy. This is different from the centre where the prime minister has reportedly seen to it that those secretaries who fail to do their jobs are given due warning. Modi is considered by the civil service to be a ruler who means business.

So far, there is very little evidence that Modi can rise above ideology. He still has two more years to go in his five-year tenure. Maybe, he would now take some hard decisions to put the country before the party.

ECONOMIC TIMES, JUL 3, 20177th Pay Commission allowances to bump up inflation temporarily

NEW DELHI: The Seventh Pay Commission and implementation of GST has put inflation in an uncertain zone, and prices are expected to rise temporarily, says an HSBC report.

Both GST and HRA increase have kicked in from July 1 and though the pay commission allowances are likely to bump up inflation, the Reserve Bank is expected to cut repo rate by 25 bps in its August meeting.

The HSBC report said as the centre implements HRA increase, headline inflation is likely to rise by about 65 bps for a year and if the states follow suit and implement the increase as one block, inflation would rise by another 65 bps.

However, if the centre implements the HRA immediately and the states in a staggered manner over two years, then inflation would rise quickly at first, but would go back to the 4 per cent target in 2019, as the statistical impact fades.

On the contrary, the report said, GST is expected to help lower inflation by 10-50 bps over time.

"The tax rates have been set such that, if over time tax cuts are passed on to final consumers, and the input tax credit mechanism works smoothly, the GST could actually lower inflation by 10-50 bps," the report said.

Regarding RBI's policy stance, HSBC expects a 25 bps cut in repo rate in the August meeting.

"...our assessment is that once the statistical impact wears off, inflation will return to 4 per cent handle in 2019, we continue to expect the RBI to cut the repo rate by 25 bps in the August meeting," HSBC said.

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On the fiscal front, the allowances are likely to cost the centre 0.1 per cent of GDP more than budgeted in 2017-18, HSBC said adding that for now this could be managed with "cuts elsewhere".

The Union Cabinet on June 28 approved recommendations of Seventh Pay Commission with 34 modifications which will impose an additional annual burden of Rs 30,748 crore on the exchequer.

The increased allowances are based on the recommendations of the Committee on Allowances (CoA).

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COMMUNALISM

BUSINESS STANDARD, JUL 5, 2017Communal clashes in West Bengal, BSF troops brought in

Communal clashes have broken out in North 24 Paraganas district over an 'objectionable' post on FB

BJP cannot take on TMC in West Bengal: Mamata Banerjee West Bengal civic polls: Mamata's TMC wins four out seven municipal bodies BJP leader in trouble after Rs 11 lakh bounty offer to kill Mamata Banerjee RSS to increase strength and presence in West Bengal West Bengal civic polls: Mamata's TMC races past BJP, leads on all 7 seats

Communal clashes   have broken out in the North 24 Paraganas district of West Bengal   over an “objectionable” post on Facebook, prompting the state government to rush in 400 troops   of Border Security Force (BSF) on Tuesday to assist the police in containing the situation.

The violence between two communities at Baduria under Basirhat subdivision in the district started on Monday night over the post, following which a young man was arrested, the police said on Tuesday.

A mob put up road blockades at several places and attacked members of the other community, besides destroying many shops, they said.

There were no reports of any casualty.

Shops were shut down in Baduria as tension prevailed and spread to the adjacent areas of Keosha market, Banshtala, Ramchandrapur and Tentulia, the police said.

A senior BSF   officer said four companies comprising 400 troops   of the force’s South Bengal Frontier have been deployed in Bashirhat, Swarupnagar, Baduria and Devganga areas to assist the state police in containing the situation.

In an unprecedented move, West Bengal   Chief Minister Mamata Banerjee   accused Governor Keshari Nath Tripathi of “threatening” her over phone and talking “big on law and order”.

She said he was acting like a “BJP   block president”.

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Banerjee said, “I am not here at the mercy of anyone. The way he spoke to me, I once thought of leaving (the chair).” Tripathi expressed surprise over Banerjee’s “attitude and language” and said there was nothing in his talks for which she should feel insulted, threatened or humiliated.

“The talks between the Honourable Chief Minister and Governor were confidential in nature and none is expected to disclose it,” a statement issued by Raj Bhavan here said.

It said the governor asked the chief minister to ensure peace, and law and order by all means.

“The Governor cannot remain a mute spectator of the affairs in the state,” it said.

Condemning the riots, Banerjee said, “This is a serious issue; let me handle it seriously.” 

She said after the arrest of one person, there should not have been any further trouble. 

“We were awake last night (to control it). The ruling party at the Centre has an agenda. They have formed a gauraksha group to kill people.”

BUSINESS LINE, JUL 7, 2017Mamata on warpath with Bengal Governor\

Says she was ‘threatened, humiliated, insulted’ over her handling of law and order issuesA confidential telephonic discussion between West Bengal Chief Minister Mamata Banerjee and Governor Keshari Nath Tripathi has resulted in a major political controversy, with the Trinamool Congress supremo alleging that she was “threatened, humiliated and insulted”.

Tripathi had called up the Chief Minister to enquire about the State’s response to reported communal flare-ups in parts of the North 24 Parganas district. The inquiry was based on a submission by the State BJP to the Governor.

‘Like a BJP block President’

At a press conference in the State Secretariat, Banerjee alleged that she was “threatened, humiliated and insulted” by Tripathi, who was behaving like a “like a BJP block President”.

The Chief Minister said that she had, at one point, contemplated stepping down. “The Governor called and said a lot of things. I am feeling insulted and humiliated. He cannot threaten me. At one point, I wished that I could step down,” Banerjee told reporters. “I have come to power on the people’s mandate and not at the mercy of the Governor. The Governor’s post is a Constitutional one and he should be neutral.”

Communal tensions

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Banerjee said trouble (communal tension) erupted in North 24-Parganas over objectionable Facebook posts, and that she had instructed the police to take action. “Police firing would have led to the deaths of many people. I am telling the religious leaders of both communities to maintain peace. Do not test my patience,” the Chief Minister said.

Governor reacts

Governor Tripathi, meanwhile, claimed that he was “surprised” at the attitude and “language used” by the Chief Minister. As Head of State, he is duty bound to be the “guardian of all citizens” and “not of any particular party or section or society”.

“The talks between the CM and Governor were confidential in nature and none is expected to disclose it. However, there was nothing in the talks for which the CM may have felt insulted, threatened or humiliated,” a statement issued by the Governor said.

Tripathi further pointed out that he “cannot remain a mute spectator” in the wake of a threat to law and order.

“It is proper for the Governor to bring to the notice of the CM any serious grievance made by any member of the public or any serious event happening in the State. The Governor cannot remain a mute spectator of the affairs in the State,” a press release from the Raj Bhavan said.

State BJP President Dilip Ghosh pointed out that the Governor had the Constitutional right to enquire about the affairs of the State. “He has only pulled up the State government for failing to maintain law and order,” he told a TV channel.

In 2008, the then Left Front government had come down heavily on Governor Gopalkrishna Gandhi for his stand on police firing at Nandigram in East Midnapore that led to the death of 14 people.

TRIBUNE, JUL 7, 2017An ugly spat in BengalBoth the CM & the Governor share the blame

A little self-restraint on both sides could have prevented the escalation of a needless spat

between West Bengal's Governor and Chief Minister. Instead of making telephonic inquiries

about a subjective as sensitive as Muslim mob attacks on houses and shops of Hindus and

accusing the state police of inaction, the Governor should have requested a one-to-one meeting

with the Chief Minister over law and order in the state. Constitutionally, nothing prevents a

Governor from asking a Chief Minister about certain developments in the state in camera. The

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Governor could have also asked for a report from the Chief Secretary, the Home Secretary or the

DGP.  Since a Governor has the power to recommend dissolution of an assembly and call for

President’s rule in a state, chances are even his innocuous inquiries about law and order could be

misconstrued, particularly when made on the telephone. Mamata Banerjee is known for her short

temper and emotional outbursts. There was no need for her to go to town with something that

transpired between the two constitutional authorities. However, she has not objected to, or

challenged, the Governor’s right to inquire about the incidents of vandalism in the state. She has

accused Governor Keshari Nath Tripathi of “threatening” her and says she felt so “insulted” that

she contemplated resigning. Media reports indicate violence has continued in North 24 Parganas

district, where an objectionable Facebook post by a Class 11 Hindu student had triggered

communal trouble.  Politics is also being played by both sides. The Governor, a BJP appointee,

reacted after a BJP-RSS delegation apprised him of the volatile situation. He was duty-bound to

have heard the government version before calling the police biased. Like any other Governor,

Tripathi needs to play a non-partisan role. He is a Governor of the entire state and not of a

particular community, nor does he represent a political party. Though the Chief Minister cannot

escape responsibility for the police failure to prevent arson or do quick damage control, she has

given strict instructions to the police not to spare hooligans regardless of their religion or

political affiliation. CM-Governor relations are frayed in some states but such situations can be

minimised if the tendency to send political activists to Raj Bhavans is resisted.  

TELEGRAPH, JUL 6, 2017Governor strains at the leash- Raj Bhavan does what it accused CM of

Calcutta, July 5: The Bengal Raj Bhavan today publicly asked the chief minister to maintain peace "without making any distinction on the basis of caste, creed or community" instead of making accusations against governor Keshari Nath Tripathi.

The public statement with some abrasive edges was pitched as a response to criticism from a

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Trinamul minister but it left the Raj Bhavan vulnerable to charges that it was doing exactly what it had preached Mamata Banerjee not to practise.

In another statement yesterday, the Raj Bhavan had said interactions between the chief minister and the governor were confidential in nature and none was expected to make them public. The statement was in response to Mamata's disclosure that the governor had insulted and threatened her over phone while discussing communal strife in North 24-Parganas.

Less than 24 hours later, statecraft was conducted in full public glare when the Raj Bhavan issued the statement that was described as "unusually political" by critics.

In the morning, Trinamul leader and education minister Partha Chatterjee had said Tripathi had overstepped constitutional bounds and demanded an "expression of regret". "Yesterday, the governor crossed all constitutional limits.... The way he spoke to the chief minister yesterday, he has forgotten that this is not Uttar Pradesh," Chatterjee added.The Raj Bhavan responded to Chatterjee's words as well as the deed of writing to the President.

"The Governor has been apprised of the statement of Shri Partha Chatterjee... and regrets to say that this is an attempt to cover the lapses of the State Government and divert the attention from the main issue of law and order," the statement read.

The statement mentioned that the governor was "fully aware of his constitutional obligations and limitations and needed no lesson from anyone on this count".

The statement had several assertive sentences but the one that is expected to touch a raw nerve in the government is what looks like a mere retelling of a truism: "maintain peace and law and order without making any distinction on the basis of caste, creed or community".

Sources close to Mamata had said that the governor, during his call yesterday, had accused police of doing nothing while one community was on the rampage and another was being targeted. The version could not be corroborated with the Raj Bhavan but the statement today suggests the governor felt the government should be reminded of its non-partisan responsibility.

The chief minister was unequivocal yesterday in her warning to both communities, saying she would not tolerate hooliganism.

Mamata had yesterday questioned a nominated governor's authority in questioning the chief minister who is elected by the people.

Today, the Raj Bhavan tried to justify the intervention. "... it should not be forgotten that the Governor is also appointed by the President on the recommendation of a democratically elected Union Government. In fact, the allegations of the Chief Minister amount to insulting and humiliating the Governor and his Office."

The Raj Bhavan also suggested that it would continue to lend an ear to grievances, possibly responding to the Trinamul charge that it had become an "RSS shakha".

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"The Governor is of the view that Raj Bhavan is not a Department of the State Government and it is open to every citizen to approach him for redressal of his or her grievances. It is wrong to say that Raj Bhavan has become the office of the BJP or the RSS," the statement said.

Using language rarely seen in staid official communication, the Raj Bhavan added that it is "not expected to tear off or throw in the waste paper basket the representations received by the Governor or his office from any person".

Iterating that Tripathi did not utter "a single word to insult or threaten" Mamata, the statement accused her of trying to emotionally blackmail the people.

A political scientist said the governor had shown restraint yesterday and had spoken about the propriety and secrecy of conversations between him and the chief minister while Mamata had gone public. "Today, the governor did the same thing. If what she did yesterday was not proper, he stooped to that level today," said political scientist Biswanath Chakraborty.

Although Mamata held a news conference in Nabanna after the statement from the Raj Bhavan this afternoon, she refused to take questions on the issue. But senior minister Subrata Mukherjee said: "What the governor has said today makes it clear that he is a totapakhi (parrot) of the BJP."

Late tonight, sources said the governor had sent a letter to President Pranab Mukherjee. "He made it clear in his letter about the complaints he had received on the violence. He also made the President aware of his conversation with the chief minister," a source said. Minister Chatterjee had earlier written to the President about the governor's call to Mamata.

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ECONOMIC AND SOCIAL DEVELOPMENT

TELEGRAPH, JUL3, 2017Decoding new India- Narendra Modi is giving shape to M.S. Golwalkar's dream

Manini Chatterjee

To his long list of skills - powerful oratory; indefatigable energy; peerless grandstanding; bear hugging every world leader within handshaking distance - Narendra Modi just added another one: a talent for black humour.

That talent was evident in his remarks in Ahmedabad last Thursday. Speaking at a function at Sabarmati Ashram, the prime minister said, "Killing people in the name of gau bhakti is not acceptable." And added, with a straight face, "We are a land of non-violence. We are the land of Mahatma Gandhi. Why do we forget that?"

Those words certainly jogged -and mocked - public memory, coming as they did from a man who was chief minister of Gujarat when riots left over 2,000 dead and who resolutely refused to express any remorse, then or since. And a man who, as prime minister, has chosen to ignore the violence unleashed by vigilantes on a regular basis.

Yet such is the stature of Narendra Modi that his words at Sabarmati have been welcomed, not just by his supporters but even by his critics. The prime minister's belated attack on cow vigilantes, they feel, will have a sobering effect on the marauding mobs and will rein in the "loony fringe" of the sangh parivar.

×The speech at Sabarmati on June 29 was not the first time that Modi spoke out against the lynch mobs. He had expressed similar sentiments after the lynching of Dalits in Una last year. That had had little effect on the ground.

But this time, many hope, it will be different. One reason for this hope is that the prime minister spoke out a day after thousands of citizens came out in different cities of India under the "Not In My Name" banner to protest against the growing climate of hate and violence which led, most recently, to the murder of 16-year-old Junaid Khan on a train a little outside Delhi.

The "enough is enough" sentiment that animated the protests may have touched Narendra Modi too and impelled him to speak, some believe. Another view is that for purely political reasons the prime minister has signalled a change of course. He does not want unruly elements, in the garb of " gau rakshaks", to mar his ambitions of becoming a world statesman, jeopardize his goal of building a 'New India'.

This hope, sadly, is likely to be belied because it rests on a fundamental misunderstanding. Narendra Modi may be a consummate politician with an enviable ability to mould his words and persona to suit the audience and the occasion. But he is also a deeply committed ideologue,

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more ideologically oriented than any Indian prime minister barring, possibly, Jawaharlal Nehru.

The saffron fraternity knows this well. Soon after Modi led the Bharatiya Janata Party to single party majority in 2014, a television anchor asked Uma Bharati whether the Rashtriya Swayamsevak Sangh would now exercise "remote control" over the new government. Uma Bharati's immediate response: there is no need of any remote control because RSS ideology flowed through every vein of Narendra bhai Modi, he was the very embodiment of its ideals, the best vehicle to translate its vision into reality.

Modi may have focused on " vikas" and "parivartan" all through his election campaign but after assuming power he has given glimpses of his deep adherence to RSS ideology. And though he has seldom mentioned M.S. Golwalkar by name, it is Golwalkar's thoughts and writings that seem to have most influenced him.

Since Golwalkar took over the reins of the RSS in 1940 and remained at the helm till 1973, he exercised an enormous influence over generations of young men who joined the RSS in the post-Independence era, the most dedicated of whom became pracharaks (full timers) - Modi a star among them.

One only has to read Golwalkar - not just his infamous We or Our Nationhood Defined but his collection of writings brought together in Bunch of Thoughts - to recognize his imprint on Modi's mind. Modi's recent use of "Attock to Cuttack and Kashmir to Kanyakumari", for instance, is a straight lift from Golwalkar.

But it goes far beyond phrases. The RSS's central thesis, extensively elaborated in Golwalkar's writings, is that India is the sacred land of the Hindus and Hindus alone, it was a land of unparalleled glory in ancient times, it fell to ruin because of successive assaults by foreign invaders, and it can only regain its lost glory once it becomes wholly Hindu again.

Golwalkar had the greatest antipathy towards the concept of "territorial nationalism" - the name he gave to the modern nation state which bestows equal rights of citizenship on all those who live within its territory regardless of caste or creed. The RSS's "cultural nationalism", a euphemism for upper caste Hindu supremacy, is the stark opposite of civic nationalism enjoined by the Constitution of India.

The difference between the two is not mere semantics but has very real consequences. Every campaign of the so-called "loony fringe" - be it ghar wapsi, love jihad, cow vigilantism, or painting minorities as anti-national - is rooted in the ideology of the RSS and finds ideological sustenance in Golwalkar's writings.

India's independence from colonial rule in 1947, Golwalkar argued, did not constitute real freedom because the new leaders held on to the "perverted concept of nationalism" that championed India's composite heritage.

"The concept of territorial nationalism," he wrote, "has verily emasculated our nation and what more can we expect of a body deprived of its vital energy? ...And so it is that we see today the

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germs of corruption, disintegration and dissipation eating into the vitals of our nation for having given up the natural living nationalism in the pursuit of an unnatural, unscientific and lifeless hybrid concept of territorial nationalism."

For the RSS, therefore, the BJP's victory in 2014 marks a seminal moment in the dream of forming a Hindu rashtra. That Modi is aware of his own significance in this journey was made clear when he referred to the end of "1200 years of foreign rule" in his first major speech in the Lok Sabha after becoming prime minister.

In the last three years, Modi has relentlessly run down the achievements of the first 70 years of independence and insisted that India has changed in a wondrous fashion only in the last three years. These exaggerated claims do not result from misplaced hubris alone. It comes from a deeply held belief that only a "Hindu" government and polity - where all "non-Hindu" elements are obliterated or made to surrender their identity - can redeem India's destiny.

Modi's New India, thus, has two inextricably intertwined sides to it. On one hand, it is about rooting out black money, building toilets, giving up LPG subsidies, enhancing India's space programme et al. On the other, it is 'Hinduizing' both State and society by obliterating the myriad influences on art and culture, ideas and scholarship from 'non-Hindu' sources that have so enriched India over millennia.

The men who killed Junaid Khan because he was wearing a skull cap and taking home Eid gifts, Yogi Adityanath's comment that the Taj Mahal does not reflect Indian culture, and Modi's belief that India's efflorescence has only begun with his victory in 2014 are all facets of the same Golwalkarian mindset - a mindset that forms the bedrock of New India.

In his Sabarmati speech, a newspaper report said, Modi narrated a childhood memory of a cow who gave up eating after it was overcome with remorse for accidentally killing a child. "His voice choked with emotion and he fought back tears as he detailed the compassion of the cow," it noted. Modi never mentioned Junaid Khan, whose bloodstains are still visible on the platform of Asaoti station.

In New India, suicidal cows evoke more tears than murdered human beings. But then a cow, we are told, experiences remorse and compassion that a prime minister seems incapable of feeling.

EDUCATION

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DECCAN HERALD, JUL 5, 2017UGC asks universities to install sanitary napkin incineratorsPrakash Kumar×

The Centre has asked all Universities to consider installation of sanitary napkin vending machines and incinerators for women students on their campus.

“As you are aware of the nationwide campaign 'Swachh Bharat and Swasth Bharat', the problem of improper disposal of menstrual waste is a major roadblock to our achieving the Swachh Bharat Mission's goal to create a clean India,” University Grants Commission (UGC) secretary Jaspal S Sandhu has said in a recent letter to all vice-chancellors.

The sanitary napkin vending machines and incinerators can be procured from the HLL Lifecare Limited, which is a public sector enterprise under the administrative control of the Union Health Ministry, he said.

“You are requested to consider the installation of these machines within the premises of girls/women hostels,” he added.

These machines are “highly inclined” with the objectives of the Centre's 'Swachh Bharat Mission' towards achieving a clean and healthy India by 2019, the UGC official said.

“The estimated cost for one set of the machine is Rs 49,649. The expenditure to be incurred (on purchase of the machine) can be directly booked under the solid waste management component of the Swachh Bharat Mission,” he said.

He asked the vice chancellors to approach Union Ministry for Urban Development for details on procurement and installation of the machine under the Swachh Bharat Mission.

“In an effort to promote proper disposal of menstrual waste and promote the Swachh Bharat Mission, it is imperative that we take the initiative to promote menstrual sanitation and proper disposal of menstrual waste by creating awareness, encouraging every woman to use eco-friendly incinerators and promoting research for a biodegradable alternative,” Sandhu said.

These steps “must be taken to solve the problems” that improper disposal of sanitary napkins causes to the environment and to public health.

“I request your support and cooperation for making Swachh Bharat Mission a success through the installation of this technology and necessary instructions may also be issued to the colleges affiliated to your university,” he added.

HINDUSTAN TIMES, JUL 7, 2017

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No-detention policy may be removed from next academic year: Union minister

Under the Right to Education Act, no child admitted in a school will be held back in any class or expelled till the completion of elementary education covering classes 1 to 8.

Priyanka Deb Barman 

The no-detention policy might be scrapped from the next academic year as the policy has negatively impacted affected quality of basic education in the country, Union minister of state for human resources development Mahendra Nath Pandey said on Thursday.

“Many states have expressed worry over declining education quality due to the no-detention

policy and supported to remove it. Eyeing this, a decision has been made where the Centre

approved that the no-detention policy can be uprooted from the next academic year,” Pandey told

the media at the BJP headquarters in Agartala.

The minister said the state governments will decide if they want to continue with the policy or

remove it.

Under the Right to Education (RTE) Act, 2009, no child admitted in a school will be held back in

any class or expelled till the completion of elementary education covering classes 1 to 8.

“There has been a unanimous decision of withdrawing the no-detention policy from the Right to

Education Act 2009,” the minister said.

He said Prime Minister Narendra Modi has decided to transform 20 universities of the country

into world class ones and the ministry was working in this direction.

During his two-day visit, Pandey visited the Sanskrit Institute and the National Institute of

Technology. He also assured to extend support for upgradation of the engineering institute.

Pandey also expressed pleasure over growing popularity of the BJP in the Left-ruled state. “I

hope BJP will be the new parivartan (change) in Tripura in the 2018 assembly election,” he said.

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DECCAN HERALD, JUL 3, 2017IGNOU announces complete fee waiver to transgender studentsPrakash Kumar

In a path breaking decision, the open varsity has announced to grant a complete fee waiver to such students for all programmes offered by it to promote higher education among those belonging to such category.

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Students belonging to transgender can pursue higher education free of cost by getting enrolled to the Indira Gandhi National Open University (IGNOU).

In a path breaking decision, the open varsity has announced to grant a complete fee waiver to such students for all programmes offered by it to promote higher education among those belonging to such category.

“The IGNOU, the world’s largest open university, has exempted the fees of transgender students for all its programmes,” Ravindra Kumar, who is vice chancellor in-charge of the varsity, said on Sunday.

He was addressing a function organised in the memory of the founding vice chancellor of the university G. Ram Reddy. Former vice chancellor of Kakatiya University, Telangana, Y Vaikuntham delivered the 22nd G Ram Reddy Memorial Lecture on ‘Education to the doorstep: from correspondence courses to distance and digital learning.’

“The competent authority is pleased to approve the fee exemption in all the programmes for transgender candidates. Regional centres may kindly note the above and give wide publicity for the benefit of transgender. Any certificate issued by the Central/ State Government/ Medical Officer/any other competent authority/ Aadhar card etc sought may be sought for the purpose,” the University said issuing a notification.

This comes about three years after the University Grants Commission (UGC) notified transgender as third gender following a Supreme Court verdict to enable them avail benefits of all the scholarship schemes and fellowship programmes offered to students of higher educational institutions.

It also issued a directive to all universities, saying such students will be entitled to avail befits of “all existing merit-based schemes and programmes” of the UGC.

In a landmark judgement in April 2014, the apex court accorded "third gender" status to transgenders, directing the Centre to treat them as socially and economically backwards. The court also held members of the third gender community should be given educational and employment reservation under Other Backward Classes (OBC) category.

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ELECTIONS

TRIBUNE, JUL 7, 2017EC appointmentsApex court raises a valid issue

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It is astonishing Parliament has seldom felt the need to regulate the process of appointments to the Election Commission. Equally surprising, no political party has ever questioned the ruling party’s right to pick whosoever it wants to for as important a constitutional body as the Election Commission. Politicians who seldom carry out a polite debate, or agree on any issue, or can find fault with electronic voting machines (EVMs) on losing an election have no objection to the possibility of a ruling party packing the EC with its favourites. That this has not happened so far is no guarantee that it never will. At least the Supreme Court does not seem willing to let this arrangement continue. It has presciently asked the Centre to put in place some credible mechanism for the appointments or it would do so.  

Defending the status quo and opposing any possible judicial intervention, Solicitor General Ranjit Kumar contends that since there has been no controversy till date, there is no need for any change. It is a regular practice with every political party in power to hand over EC posts to civil servants. Barring a Seshan here and or a Lyngdoh there, civil servants have sprung no surprises. They are trained to be respectful to authority and know how the system works, and who can be, or cannot be, touched. State-level officers assigned to the Election Commission have often got away by openly serving the interests of the party or candidate of their choice. Political leaders do at times make state-level complaints but rarely have they doubted the independence or neutrality of the Chief Election Commissioner or Election Commissioners. 

But there is a valid case for change. There is palpable merit in the court's argument that “if there is a formal law and a panel to select the CBI chief, then why not for the CEC and ECs?” The apex court has rightly claimed that if no law has been passed as mandated by Article 324(2), “the expectation is that Parliament will make the law” and if Parliament has not done that, “then can't the court lay down the procedure?” The Centre is left with few options but to close this gap.EC appointments Apex court raises a valid issue 4 SHARES FacebookTwitterGoogle+EmailPrint Also in this section Another successful visit It is astonishing Parliament has seldom felt the need to regulate the process of appointments to the Election Commission. Equally surprising, no political party has ever questioned the ruling party’s right to pick whosoever it wants to for as important a constitutional body as the Election Commission. Politicians who seldom carry out a polite debate, or agree on any issue, or can find fault with electronic voting machines (EVMs) on losing an election have no objection to the possibility of a ruling party packing the EC with its favourites. That this has not happened so far is no guarantee that it never will. At least the Supreme Court does not seem willing to let this arrangement continue. It has presciently asked the Centre to put in place some credible mechanism for the appointments or it would do so.   Defending the status quo and opposing any possible judicial intervention, Solicitor General Ranjit Kumar contends that since there has been no controversy till date, there is no need for any change. It is a regular practice with every political party in power to hand over EC posts to civil servants. Barring a Seshan here and or a Lyngdoh there, civil servants have sprung no surprises. They are trained to be respectful to authority and know how the system works, and who can be,

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or cannot be, touched. State-level officers assigned to the Election Commission have often got away by openly serving the interests of the party or candidate of their choice. Political leaders do at times make state-level complaints but rarely have they doubted the independence or neutrality of the Chief Election Commissioner or Election Commissioners.  But there is a valid case for change. There is palpable merit in the court's argument that “if there is a formal law and a panel to select the CBI chief, then why not for the CEC and ECs?” The apex court has rightly claimed that if no law has been passed as mandated by Article 324(2), “the expectation is that Parliament will make the law” and if Parliament has not done that, “then can't the court lay down the procedure?” The Centre is left with few options but to close this gap.

EMPLOYMENT

STATESMAN, JUL 4, 2017Jobless growthDevendra Saksena

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From a mere oxymoron, jobless growth has come to define the Indian economy in 2017. This syndrome fuels the pan-India farmers’ agitations, stone-pelting in Kashmir, and provides the crowds that cheer politicians when they make speeches.

With nothing better to do, many of our youth have to turn to such innovative pursuits for survival. Without exaggeration, jobless growth is the most pernicious social fallout of our growth story.

However, the basic question remains ~ Is jobless growth really possible?

As a society, we will regress rather than progress if a significant proportion of our youth is jobless or if persons willing to work cannot find employment.

The economic consequence of large-scale unemployment and underemployment is reduction in GDP, as was witnessed worldwide after the global crisis of 2008. Surprisingly, even with probably the lowest rate of job creation our economy is the fastest growing in the world.

The explanation for this paradox is rather unflattering. Almost 60 per cent of our GDP consists of household consumption. With a robust population growth rate, our GDP keeps on increasing because of increasing internal consumption. The second reason is the unprecedented growth in agricultural output. The third reason is harder to digest. At this juncture, the NPAs of banks stand at Rs. 10 lakh crore, accounting for nearly 7 per cent of GDP.

We can safely assume that a large part of these bad loans were used for consumption which went on to increase our GDP. The fourth reason is the “parallel economy” in our financial system which also generates demand and provides employment and thus contributes to GDP.

The size of the parallel economy is a matter of conjecture but it is a fact that most high-end consumer goods are purchased with unaccounted money and most high-value property transactions have a black money component ~ not withstanding demonetisation, IDS and PMGKY.

Ours is a consumption-driven economy. This squares off with what we see every day; go to any mall and you will see people shopping as if there was no tomorrow. Five-star hotels and restaurants are always fully booked; so are outrageously priced shows at South Mumbai auditoriums.

It is hardly appreciated that we were insulated from the global crisis of 2007-08 by the Sixth Pay Commission bonanza and the parallel economy; both ensuring that there was no slowdown in the economy. But the situation has changed over the last decade.

Formalisation has severely dented the black economy; not necessarily in the way the Government wanted. Shutting out a productive part of the economy has resulted in economic contraction and unemployment. Due to high tax rates, IDS and PMGKY could not bring about convergence between the formal and parallel economies. Also the Government’s plans to cut

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liquidity by demonetisation and massive tax collection through IDS and PMGKY, have not worked.

Careful ~ almost fretful ~ inflation targeting is the Government’s response to this situation. The abnormality of this response becomes obvious if we consider how other countries look at inflation. The US Fed is worried that inflation, at a low of 2 per cent, is impacting growth while the RBI’s worry is that 2 per cent inflation is too high. To prevent inflation, even in the face of agricultural distress, the Government wants to keep prices of agricultural produce artificially low. Probably, the Government is aware that if inflation is not controlled artificially ~ even if it leads to loss of jobs and production ~ then the genie of hyperinflation would get uncorked.

So what should be done now? Remember, the way the Great Depression of 1929 was contained by the US; not by applying existing economic theories but by a huge budget deficit and other unconventional measures. We also require some bold and imaginative steps to get rid of the spectre of jobless growth.

First, the Finance Ministry must shed its predilection for collecting more and more taxes even at the cost of economic growth.

We have exorbitant rates of indirect taxes which are stifling the growth of our economy and worsening the living conditions of the poor. Taxes transfer purchasing power from citizens to the Government. The efficacy of government expenditure can be judged by cleanliness in the country visa-vis the Swachch Bharat Cess and the plight of farmers despite the Krishi Kalyan Cess. GST will not provide any relief; tax rates on most commodities will remain the same or increase.

On the other hand, businesses would grow if we leave them with sufficient investible surpluses. Second, the Government should fill the vacancies in its own set-up; simple steps like filling the vacancies of primary teachers and constables would tackle unemployment significantly and kick-start the economy. Third and most importantly; growth is floundering because we are not investing enough.

Our savings rate has fallen below the magic figure of 30 per cent which equals depreciation of 25 per cent plus inflation and incidentals. A savings rate below 30 per cent implies that there is no net investment in the economy.

Presently, the meagre returns on bank deposits and an uncertain share market ensure that people spend rather than save.

A scheme offering reasonable returns, tax free up to a decent limit would work wonders by mopping up excess liquidity and increasing the savings rate to a respectable level.

Finally, the Government needs to make good on its promise to ensure a degree of ease in the conduct of business. Once new business enterprises mushroom, the problem of joblessness would vanish forever.

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The writer is a retired Chief Commissioner of Income-Tax

FINANCIAL INSTITUTIONS

PIONEER, JUL 7, 2017

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BANKS WILL COMPENSATE ONLY IF YOU REPORT FRAUD IN 3 DAYS: RBI5

In order to ensure protection of customers from electronic frauds or forged transactions such as unauthorised and fraudulent electronic banking transactions in the country, the Reserve Bank of India (RBI) on Thursday said money of customers suffering any loss from such fake transactions will be credited in the accounts concerned within ten days of the incident, only if these unauthorised electronic banking transactions are reported to the concerned bank within three days.

With the increased thrust on financial inclusion and customer protection, and considering the recent surge in customer grievances relating to unauthorised transactions resulting in debits to their accounts and cards, the RBI has undertaken a review of criteria for determining customer liability. The move came after the review that there was a need for strengthening of systems and procedures.

On such fake transactions, in case the third party fraud is reported with a delay of four to seven working days, a customer will face liability of up to Rs 25,000. However, in cases where the loss is due to negligence by the account holder such as sharing of payment credentials, the customer will bear the entire loss until the unauthorised transaction is reported to the bank.

“There will be zero liability of a customer in case of third party breach where the deficiency lies neither with the bank nor with the customer but lies elsewhere in the system,” the RBI said.

Also, the bank said the revised directions are being issued amid recent surge in customer grievances relating to unauthorised transactions resulting in debits to their accounts/cards. “Any loss occurring after reporting of the unauthorised transaction will be borne by the bank,” it said, while issuing revised directions on ‘Customer Protection - Limiting Liability of Customers in Unauthorised Electronic Banking Transactions’.

“The maximum liability of a customer will be Rs 25,000 in cases where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the customer, but lies elsewhere in the system and when there is a delay of four to seven working days,” the RBI said in its notification.

“If the fraud is report after seven days, the customer liability will be determined as per the bank’s Board approved policy. The maximum liability of a savings bank account customer will be Rs 10,000 in such cases,” it added.

Referring to reversal timeline for zero or limited liability of customer, the RBI said the bank should credit shadow reversal the amount involved in the unauthorised electronic transaction to the customer’s account within 10 working days of reporting of the fraud.

This has to be done without waiting for settlement of insurance claim, if any, the RBI added.

It further said banks must ask their customers to mandatorily register for SMS alerts and wherever available register for e-mail alerts, for electronic banking transactions. “The SMS alerts shall mandatorily be sent to the customers, while email alerts may be sent, wherever registered,” it added.

INTERNATIONAL RELATIONS

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TELEGRAPH, JUL 5, 2017Being realistic- Narendra Modi's open friendship with Israel

Krishnan Srinivasan

The Indian prime minister in New Delhi before leaving for Israel

India and Israel achieved independence in 1947 and 1948 respectively, and both were beset with the problems of partition. India recognized Israel de jure in 1950, but diplomatic relations commenced only in 1992. The Oslo peace process between the Israelis and the Palestinians, the importance of closer relations with the United States of America after the collapse of the Soviet Union, and the diminishing sensitivity of the main Indian political parties to Muslim vote-bank politics - all played their part in creating the diplomatic opening. This year, the 25th year of this diplomatic relationship, is being marked by the first visit by our prime minister to that country. The presidents of Israel have been in India twice and its prime minister once, while President Pranab Mukherjee visited Israel in 2015. Bilateral ties have flourished even in the absence of many high-level exchanges, irrespective of the nature of governments in New Delhi and Tel Aviv. Narendra Modi has met Israel's prime minister, Benjamin Netanyahu, at multilateral meetings and their personal chemistry has been good.

Modi had visited Israel as Gujarat's chief minister, and since becoming prime minister in 2014, has made it very clear that he does not subscribe to the previous inhibitions about an open friendship with Israel. While Israel has a population of only around nine million, it is advanced in technology and has more companies listed in the New York Nasdaq technology index than any developing country. This is because it is highly skilled in military-security hardware, recycling, desalination, bio-technology, water management, healthcare, communications, pharmaceuticals and non-conventional energy. These are all relevant for India's development and Indian private and public companies should consider outright purchase, or failing that, investment to access Israeli technology as high priority. A trade agreement has been under negotiation since 2010, and with total trade standing at about $5 billion, India is Israel's seventh biggest trade partner. There is longstanding cooperation between the diamond industries of Israel and Gujarat. In India, under a science and technology agreement, there is joint research in biotechnology, lasers and the human genome, and 15 Israeli agriculture centres have been set up in 10 states. Thousands of tourists travel in both directions each year and there are 70,000 Indian-origin Jews living in Israel.

The most prominent factor in Modi's engagements thus far with West Asia - the United Arab Emirates, Saudi Arabia, Iran and Qatar - has been military-security cooperation, and this aspect is expected to dominate his visit to Israel as well. Neither country has signed the Non-proliferation Treaty, and both have nuclear weapons. Both countries are heavily armed, although for decades, Israel has hardly encountered any external threat. In any case, it can always fall back on guaranteed American protection. Strategic Indian investment in Israel could include defence industries, cyber security and nano-technology. This would be the easiest way to obtain technology transfers, though this will involve some very hard bargaining. There could also be stakes for Indian oil and gas companies in the Mediterranean gas fields off Israel.

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×India is one of the biggest buyer of Israeli military equipment. Israel was the third international supplier to India to a value of one billion dollars in the 2013-2016 period. India launched satellites for Israel in 2005 and 2009, and perhaps, since 1968, there has been intelligence cooperation. The last aspect, together with joint military exercises, has so far been kept away from the public eye. The new spirit of disclosure might change that, as was shown by the detailed briefing given to the Indian media in early April about arms purchases from Israel. These included Barak 1 and Barak 8 missiles for the army and navy, air defence systems, airborne warning and control systems, drones and anti-tank missiles. Stress was placed on Indian collaboration with Israeli Aerospace Industries and Rafael to develop medium-range surface to air missiles in India, thereby making this a part of the 'Make in India' policy for India's defence industries.

Clearly, there are differences of opinion and nuance in international affairs. Israel has an aversion to Iran bordering on paranoia, on which it makes common cause with Saudi Arabia and some Sunni Gulf sheikhdoms. In Israel's case, this could be a way to divert attention from its perennial Palestine problem, the fragility of its government coalitions, corruption charges against top politicians, including the prime minister, and to make some future claim to a role in any Syrian settlement. India cannot share this view of Tehran being a sponsor of terrorism and instability in West Asia. On the contrary, Iran has paid a greater price in material and manpower in combating the Islamic State in Iraq and al-Sham than any other nation. Nor can India concur with any agenda for regime change by stealth or by force in Syria. Israel's determination to put down Palestinian resistance with an iron fist earns it few friends in India, whether among the Muslim or the Hindu communities. It is to be hoped that Modi will leave no doubts in Israeli minds regarding India's position on these issues, which are matters of principle.

Modi's stand-alone visit to Israel, in other words, his choice of not travelling to Palestinian-held territories in the West Bank or Gaza, is evidence that New Delhi seeks no role in bringing together the Israelis and Palestinians, in spite of having friendly relations with both - a position sought only recently by President Donald Trump. This is also realistic; many have tried and failed to bridge the chasm of mistrust. This problem is a historical legacy best left to the super-powers, the Jews and their Arab neighbours. A gesture by Modi towards the president of the Palestinian Authority, Mahmoud Abbas,is not likely to yield any political or economic advantage. An outward show of support for the Palestinians has little traction for India's relations with the Muslim world, or even for the Modi government's connections with the Muslim constituency in India. Modi has shown that he is capable of taking in his stride the expected criticism from the Congress and what remains of the Indian Left, especially as informed critics will know that the Hamas-ruled Gaza Strip is not under the authority of Abbas, who has not been able to set foot there since 2005.

The author is a former foreign secretary of India

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TELEGRAPH, JUL 1, 2017Businesslike meeting- Indian foreign policy seems to have lost coherence

Sunanda K. Datta-Ray

This time Narendra Modi hasn't tried to impress us desis and dehatis by boasting he enjoys the singular privilege of calling the Great White Chief "Donald". Perhaps the astute Jaishankar Subrahmanyam pointed out that even while he was bragging about being on first name terms with Barack Obama, the American president lost no public opportunity of addressing him with the utmost formality and no hint of the familiarity he claimed as "Mr Prime Minister" or "Mr Modi". Jaishankar may also have reminded him that Trump's comments and the joint statement demonstrated again the truth of Calvin Coolidge's comment that "the business of America is business". This column underlined during the election campaign that with larger private construction projects in India than probably anywhere else outside North America, Trump was unlikely to disturb the relationship.

His aides rightly argue that far from contradicting each other, the "Make in India" and "America First" slogans would converge if F-16 and F/A-18 fighters are made in India, for spares would then have to be imported from the United States of America. But important as business is, there are other drivers. Apart from the "American Dream" of millions of educated young Indians, the US "is the indispensable partner" for realizing "India's four key priorities -- energizing the economy, raising our technology and management capabilities, securing the homeland, and ensuring a favourable balance of power" - as Jaishankar told the Carnegie Endowment three years ago. The moot question as Modi trots off to Israel but not Palestine is how to serve these ends without surrendering what remains of a once vigorously independent foreign policy.

Apart from Tribeca Developers, Washington's reasons for courting India are rooted in the lone superpower's global aspirations. Despite claims that the separate strands of US policy don't add up to "a zero sum game", bilateral relationships must fit into the bigger picture like a jigsaw puzzle's pieces. It's even truer now as an American army colonel wrote a decade ago, "If US relations with China deteriorate, then India becomes much more important. Similarly, if US relations with China improve, then India could become somewhat less crucial as a strategic partner." We are witnessing a period of deteriorating Sino-US relations. As for Pakistan, rejoicing Indians should realize Syed Salahuddin's indictment doesn't mean support for India in the Jammu and Kashmir dispute. In fact, the state department's "Indian-administered" description reveals open-ended options. The US opposes jihadi violence, while India objects to territorial pretensions. Nor does the US endorse Indian variants of the "Delenda est Carthago" (Carthage must be destroyed) war cry with which Cato the Elder ended every speech in 2nd Century BC Rome. The rationale for relying on Pakistan hasn't changed since March 1949 when a memorandum by the US joint chiefs of staff dismissed South Asia - with one exception - as a region of "negligible positive strategic importance". The exception was Pakistan which "might be required as a base for air operations against central USSR and as a staging area for forces engaged in the defence or recapture of Middle East oil areas". Later, Pakistan was useful for espionage. Still later, it provided a conduit to China. Pakistan played a critical role in the

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American response to Nine-Eleven.

Pakistan still matters because, as General Anthony Zinni, commander of US Central Command, warned, if the military or religious hardliners take over "we'll see a theocracy like Iran" or "another failed state like Afghanistan". His report described Pakistan as a major centre of Islamic terrorism where Lashkar-e-Toiba, Jaish-e-Mohammad and the Taliban operated and trained "either with active support from elements in the government or with their knowledge and lack of interference" and al Qaida had set up shop. While all this explained why the US could not afford to disengage with Pakistan, none of it had much bearing on Indian allegations regarding Pakistani mischief in Kashmir which is well enough documented even by American officials. A five-page report by the House of Representatives task force on Kashmir accused the Inter-Services Intelligence of giving Kashmiri mujahideenthe powerful long-range missiles that the US had developed for the Afghan resistance. A Congressman demanded that Pakistan shut down terrorist bases, and another introduced a bill naming Pakistan as a country whose government "has repeatedly provided support for international terrorism". The state department's Patterns of Global Terrorism report noted "there were credible reports in 1994 of official Pakistani support to the Kashmiri militants". The White House remained unmoved until terrorists struck at home.

×Modi has been criticized for not broaching the subjects of H1B visas and racist attacks with his host. Perhaps he realized (or was advised) that pleas on the first count would amount to a shameful admission of India's inability to provide for its best trained and most talented youth even while the prime minister goes gallivanting about the world. As for the second, a blunt man like Trump could easily turn round and retort, "If they don't like it here, who asked them to come?" Lasting partnerships are built on more substantial foundations of national interest.

Hence the abiding importance of business. George W. Bush didn't mince his words addressing the Asia Society in Washington on the eve of visiting India. He linked "the growing prosperity of the Indian people" with "the potential market it offers for America's goods and services". Others claim Bush was dazzled by the notion of a billion Indian democrats. Bush himself admitted to being dazzled by India's middle class buying air-conditioners, kitchen appliances, and washing machines, a lot of them from American companies like GE, Whirlpool, and Westinghouse. "Younger Indians are acquiring a taste for pizzas from Domino's, Pizza Hut," he said to laughter. "And Air India ordered 68 planes valued at more than $11 billion from Boeing, the single largest commercial aeroplane order in India's civilian aviation history." Business has a hoary past. The fabled phrase "There is the East. There is India" carved on a statue honouring the 19th century Missouri senator, Thomas Hart Benton, expressed his faith that the railway from St Louis to San Francisco would be the "western route to Asia" along which would pour the spices Columbus sought, "the teas, silks and crepes of China, the Cashmeres of Thibet, the diamonds of India and Borneo..."

The threat of US import restrictions implicit in Trump's demand for "a fair and reciprocal" trading relationship (although the $24-billion trade gap in India's favour is a fleabite against China's $347-billion surplus) will severely test India's diplomacy. But India is no stranger to

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grappling with such challenges while seeking to cooperate with the US in crucial areas without surrendering an independent foreign policy that is presumably still New Delhi's aim. India abstained when the US, Britain and France imposed economic sanctions against Libya, but had to toe the line after Washington cut off aid to Yemen for not supporting the anti-Iraq coalition, though still refusing to denounce the "Asian Hitler", as the American president called Saddam Hussein. Some years ago, the US embargo against Cuba forced India to go to considerable lengths to disguise as a sale a gift of rice that had been promised to Castro. This time, the furtiveness seems to be about endorsing stronger sanctions against North Korea despite India being one of Pyongyang's biggest trading partners and a major food aid provider.

Trump and Modi also agreed iftar is redundant: the White House abandoned the reception Bill Clinton introduced while no central minister attended Pranab Mukherjee's in Rashtrapati Bhavan. But while Trump can't be faulted for following Palmerston's injunction about a nation's permanent interests, one wonders whether Modi showered praise on Sushma Swaraj in Washington to distract attention from the lack of coherence and consistency in foreign policy or its shift from the independent mooring of so many decades. We might know if Modi moots the two-state solution in Israel.

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JOURNALISM

TELEGRAPH, JUL 4, 2017Some achievement at last- Journalists should keep trying out new subjects and approaches

WRITING ON THE WALL - ASHOK V. DESAI

Journalism has its occasions for consternation. I have been sued for defamation. The publisher washed his hands of the matter, and asked me to face the suit on my own. Luckily, there are amongst my friends a couple of lawyers - a husband-and-wife team - they have saved me whenever I got into a soup. And then there was the minister who wrote to an editor I wrote for that I had personal animus against him. I gave the minister any number of examples when I had been nice to him. But it did not save me; eventually, I was eased out of a job I enjoyed. But I was lucky; I continued writing elsewhere.

I began writing in Commerce, a Bombay magazine, almost as soon as I finished my studies in 1963. In the early years, writing in the press was a way of communicating what I learnt from economic research to a wider audience of lay intellectual consumers. In those days, academic salaries were modest - my salary as reader in Bombay University was Rs 900, and I nearly doubled it to Rs 1,600 on moving to Delhi Cloth Mills in 1968. So a cheque of a few hundred for a column was always welcome. But soon after I left the finance ministry in 1993, I was offered an editorship and became a full-time journalist. Since then, journalism has been a combination of a pastime, a sport, and a commitment. I was going to add an addiction, but I hope it has not gone that far.

A journalist would not exist without readers; while they are behind the scenes most of the time, they make their presence felt once in a while. Threats and abusive mails follow criticism of political cult leaders. I do not receive many because I try, as a matter of principle, to criticize positions and issues and not those who hold them; however profitable abusers and extremists find their forms of expression, I persist in the hope that at some point, they will open themselves to alternative opinions. It does not happen often, especially in politics; once a politician succeeds, he feels himself rewarded for his prejudices and develops a vested interest in keeping them.

But politicians are an insignificant proportion of my readers. Most are middle-class people, making their way through a career or trying to get through the period of unemployment which goes by the more respectable term, retirement. Whilst I am always conscious of my readers, they do not place any restrictions on what I write. Still, I want to be read; so I try to find an interesting beginning, to write something that will make the reader think, "Ahem! That is interesting! I hadn't thought of that!" - something that will engage them intellectually and emotionally.

×I should stop there, before I begin to attach too much rationality to what is essentially an

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instinctive activity. I am no good at planning; I do not think out a piece before I write. Usually, I think of some nonsense someone important has been spouting, or some thought that the ongoing debate has missed out, and start writing about it; the rest just follows as I look at my Apple Air.

That sounds a pretty chaotic way of going about what has occupied a good deal of my mind and time for a quarter century and what I did off and on for another quarter century before. But the last time I counted, I had written 1.2 million words between 1998 and 2012; over my journalistic lifetime, I must have written something like three million words. That is a considerable bombardment on readers. They do not have to suffer it. They can always ignore a writer and go on to something else. It is like bowling. Suppose a bowler had a boring, predictable line. A batsman would soon work it out and hit the bowler to one boundary after another. Such a bowler would not last long in cricket. The simile does not apply perfectly in writing; there are readers who are used to some lines of argument and continue to read journalists who keep taking the same line. But even they look for something new, interesting or entertaining; that is also what draws new readers. So a journalist would be well advised to keep trying out new subjects and lines of approach.

This is where reading helps. If one has access to a good library - or is rich enough to keep buying books and has a huge enough house to keep shelving them - one can explore new writing, look for new ideas, and get precisely the experience one is trying to give the reader - the feeling of "Ah! I hadn't thought of it". Where does one look for it? The first place is review magazines; I, for instance, can easily lose myself in New York Review of Books. An easy read is history magazines; World Archaeology or Journal of Economic History can keep one riveted through the afternoon. Recently, I have got interested in geoengineering. That sounds obscure, but is highly relevant. As my readers might have noticed, I am now convinced that the earth is warming up, and that the consequences for India are likely to be dire. So it is time for us to interest ourselves in how to reverse or decelerate global warming, and to act nationally or, if we can get other countries to cooperate, internationally. In any case, what we do now is likely to have little effect in the next few years, and we should work out what is going to happen to us and how we can adapt ourselves to it. That took me to geoengineering - a subject I hardly knew existed some weeks ago. That is what I am reading, and I will go wherever it takes me; my readers will get to know where.

This is one example of what goes on behind my columns. And I must be doing something right. For, to my great surprise, I have just received the Shriram Award for Financial Journalism. That has probably more to do with my writings on the economy, for I do not write on the stock market; but presumably, the judges for the award got together and looked for good writing in the area, and some of them had read me and thought highly enough of my writings to give me the award.

So, there is hope - or rather, there is manna in heaven. What exactly is that? It is the food that god rained upon starving Israelites when they left Egypt and walked to Canaan across the Sinai Peninsula. What did it taste like? No one knows, though there are various theories - for instance, that manna was bdellium. What is that? One could go looking for it in Egypt and Israel; but it is difficult given my age and resources. It is easier to find fascinating new

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knowledge. It is less exhausting, and more fun. So I am going to go looking for it. If I find it, my readers will no doubt hear about it. Meanwhile, though, do not hold your breath; even my next column is a fortnight away.

MONEY

TIMES OF INDIA, JUL 5, 2017Another chance to exchange demonetized notes likely in 15 daysDhananjay MahapatraHIGHLIGHTS

SC was a step away from ensuring an exchange opportunity when the Centre sought two weeks to respond to the suggestion.

SG Ranjit Kumar said, give me two weeks & will take instructions from the govt. The court said that genuine cases should not be punished by turning hard-earned money into

trash.

NEW DELHI: The Supreme Court on Tuesday sought to prevail on the Centre to open a fresh

window for exchange of scrapped Rs 500 and Rs 1,000 notes+ for people who missed the

December 30 deadline, if they could establish that the money was theirs and they had a genuine

reason for not changing it.

The court was a step away from ensuring an exchange opportunity when the Centre sought two

weeks to respond to the suggestion. The court's previous inquiries had so far failed to move the

Centre.

The government, through solicitor general Ranjit Kumar, relied on data about misuse of

exchange of old currency provisions to explain its reluctance to heed the court's hints, even

though PM Narendra Modi had on November 8 said those with genuine difficulties could expect

a window after the year-end deadline.

But the court's argument that genuine cases should not be punished by turning hard-earned

money into trash saw the SG seeking time. "It will not be a general window but on a case to case

basis. Give me two weeks, I will take instructions from the government," he said.

Scores of petitions were filed in the SC accusing the government of reneging on the promise and

seeking relief to exchange scrapped currency notes. The SC had weeded out a majority of them,

terming reasons for failure to meet the December 31 deadline as "cock and bull story". However,

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10 petitions survived the SC's stringent scrutiny and on Tuesday, the court sought Kumar's

response.

When the SG reiterated the Centre's consistent stand, a bench of Chief Justice J S Khehar and

Justice D Y Chandrachud said, "It is our duty to caution you. If a person is alone and suffered

grave illness during the November 9 to December 30 period, it becomes absolutely impossible

for him to deposit his old currency notes. If he can prove that it is his hard earned money and not

somebody else's, he would surely require the window you had promised.

"We ourselves (the bench) have rejected many petitions as we found their reasons not genuine.

But those with genuine difficulty must have a chance to convince the authorities. If you do not

agree to open a window, then we will say it is open for such persons who can prove genuineness

of their money and difficulty to deposit within December 30 deadline to seek relief from the

government. He should have an opportunity to explain and replace the old money. You cannot

turn his genuine money into trash."

The bench said the government must sort this out. "We have seen cases where a person has lost

his genuine money for no fault of his. The government cannot trash a person's genuine money.

You (the government) cannot render a person's genuine money go waste like this," it said.

On March 21, the SC had told the government+ , "You must understand that these people are

in dire straits. If they cannot establish the genuineness of the delay in depositing the scrapped

currency, they would be liable for prosecution. The PM's speech as well as the notification that

followed immediately after had promised to provide a window to people in such difficulty. But

the ordinance did not provide any window except for NRIs and those Indians who were

travelling abroad at that time. These people hoped that they will get another chance but the

ordinance issued on the last day of deadline on December 31 suddenly closed that window.

Everyone heard the PM and believed that the PM's words cannot be taken back."

Top Comment

This is just to accomodate cash of corrupt judiciary. Else, did you see any one raising this issue?

Where it came from all of a sudden?Supreme court is no Saint! No credibility of courts now.

T... Read MoreVishal Ag

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Reporting the last court proceedings on the petitions on April 11, the TOI had written, "If you are

still left with a good number of scrapped Rs 1,000 and Rs 500 notes having failed to deposit in

banks by December 30 demonetisation deadline, you could preserve them till July-end hoping to

get a small window from the government to remonetise them."

POLICE

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DECCAN HERALD, JUL 6, 2017States spend paltry 3% of budget on police: studyShemin Joy, K'taka among six states that spend less than 2% of budget

Karnataka is among six states which spend less than 2% of its budget, while expenditure of 16 states are in the 2% to 5% bracket, the study 'Police Reforms in India' by PRS Legislative Research stated.

×

The states together spent Rs 77,487 crore on the police forces in 2015-16, just 3% of their combined budget, a study has revealed.

Karnataka is among six states which spend less than 2% of its budget, while expenditure of 16 states are in the 2% to 5% bracket, the study ‘Police Reforms in India’ by PRS Legislative Research stated.

“Bulk of this expenditure was on revenue items, like salaries, because police is a personnel-heavy force. Expenditure on police formed 3% of the total budget for states (Rs 27.20 lakh crore),” it stated.

On an average, in the last decade, the expenditure on police has been increasing at the rate of 15% per year, though the annual growth has fluctuated widely (4% in 2012-13, 30% in 2009-10). 

While Odisha spent 1.1%, Gujarat spent 1.7%, Karnataka 1.8%, and Himachal Pradesh, Telangana and Madhya Pradesh 1.9% each.

Among the states which have higher spending, Manipur leads with 8.7% followed by Nagaland 7.2%, Punjab 5.8% and Jammu & Kashmir 5.2%. 

The study also expresses worry about the lack of a strong communication support, state-of-the art weapons and a high degree of mobility.

Citing a Comptroller and Auditor General report, the study stated that weaponry of several state police forces is “outdated” and the “acquisition process of weapons slow, causing a shortage in arms and ammunition”.

“An audit of the Rajasthan police force (2009 to 2014) concluded that there was a shortage of 75% in the availability of modern weapons against the state's own specified requirements. 

The same audit also found that even when weapons were procured, a large proportion of them (59%) were lying idle because they had not been distributed. Similar audits in West Bengal and

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Gujarat found shortages of 71% and 36%, respectively,” the study revealed. One important issue highlighted by the study is the vacancies, which have been around 24%-25% since 2009. In 2016, the maximum number of vacancies were in Uttar Pradesh (50%), Karnataka (36%), West Bengal (33%), Gujarat (32%) and Haryana (31%).

“A high percentage of vacancies within the police forces exacerbates an existing problem of overburdened police personnel,” the study added.

PRIMEMINISTERS

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TELEGRAPH, JUL 2, 2017

Honouring the word- A breach of faith is unbecoming of any prime minister

Gopalkrishna Gandhi

No teacher teaches but learns so much more in the process. My students had been tasked to write essays on the broad subject of India's nationhood. There was not a single essay from which I did not learn something. One of them, on tribal India, contained a memorable quote from a speech given in the Constituent Assembly on December 19, 1946 by the Munda leader, Jaipal Singh. "I rise," he said,"to speak on behalf of... the original people of India... As a jungli... The whole history of my people is one of continuous exploitation and dispossession by the non-aboriginals of India punctuated by rebellions and disorder, and yet I take Pandit Jawaharlal Nehru at his word. I take you all at your word that now we are going to start a new chapter, a new chapter of Independent India where there is equality of opportunity, where no one would be neglected..."

What I was moved most by in that deeply affecting quotation was the faith, the simple honest trust, reposed by the tribal leader in one man's word - Jawaharlal Nehru's word: "I take Pandit Jawaharlal Nehru at his word." And then, broadening his faith, "I take you all at your word..." The essay made me reflect on 'the word' today, the value, traction, worth of a word that is given by the authority of the State.

The Ayodhya Canto in Tulsidas's Ramacharitamanas has the line spoken by Dasarath: "Raghukula riti sada chali ayi, prana jahu baru bachanu na jayi." Translated by A.G. Atkins it means: "'Tis a known rule in Raghu's line, one naught can shake - Life may go, but his word a man may never break."

Three instances of 'the word' given by the Indian State, post-Independence, came to mind. In two of these the word was kept and one in which it was not.

In the first instance, the word was almost betrayed. It occurred in 1948 when the question arose of the division of the cash balance between India and Pakistan. India was required to and bound itself to pay a sum of Rs 75 crore to Pakistan as its proportionate cash asset. India had paid Rs 20 crore in the first installment and was set to pay the second instalment of Rs 55 crore when Pakistan invaded Kashmir. Nehru and Patel favoured holding the amount back. Would Pakistan not use the money to purchase arms to use against India? The governor general, Mountbatten, and Gandhi, both prevailed on the government to make good the payment. Imprudent idealism? Inviting the smirk of the cynic and the snarl of the jingoist, one should say honour won. The honour of the plighted word. And India has a huge moral advantage logged there, in its book of accounts with Pakistan.

The second major word of honour was given by the prime minister, Nehru, on the floor of the Lok Sabha on August 7, 1959. This was on the subject of India's official language. The south, Tamil Nadu in particular, had been disturbed at what seemed to it like Hindi

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imperialism. Nehru said: "...for an indefinite period - I do not know how long - I should have, I would have, English as an associate, additional language... as an alternative language as long as people require it and the decision for that I would leave not to the Hindi-knowing people, but to the non-Hindi-knowing people." This was the polar opposite of majoritarianism and Madras was assuaged. A year after Nehru's death, in 1965, suspicions of Hindi imposition rose again and riots broke out in Madras. The prime minister, Lal Bahadur Shastri, reiterated the assurance. English, he said, would continue as the second official language as long as non-Hindi-speaking people wanted it. This Nehru-Shastri word of honour is cited every time there is apprehension in Tamil Nadu over the intentions of Hindi enthusiasts. And Delhi is obliged to say there is no change in the assurance given. The Nehru-Shastri word has not only thereby served to keep Tamil Nadu reassured but has in fact blunted the resistance of the people of the state towards Hindi as a language per se.

The third major instance of the word and its honour arose over the princely states of India which covered 48 per cent of the area of undivided India and nearly 30 per cent of its population. Defending the privy purse, the author of the integration of the states, Vallabhbhai Patel, said in the Constituent Assembly: "Let us do justice to them... The rulers have now discharged their part of the obligations by transferring all ruling powers... The main part of our obligation under these agreements is to ensure that the guarantee given by us in respect of privy purses are fully implemented. Our failure to do so would be a breach of faith and seriously prejudice the stabilisation of the new order." Whatever the socialist in Nehru may have felt about the princely order, the man of honour in him did not cavil at the purses. But the prime minister, Indira Gandhi, clearly displeased by the princes' rallying round the Swatantra Party, abolished the privy purses in 1970. The total amount payable to the princes at the time was only four crore rupees a year. Patel's word of honour was relinquished at the altar of political hubris in the garb of democratic equity.

The State's 'word' keeps being given.

Addressing a gathering of Christian leaders at Vigyan Bhavan, New Delhi, in February 2015, the prime minister, Narendra Modi, extolled the 2008 inter-faith 'Hague Declaration' on human rights and announced: "[S]peaking for India, and for my government, I declare that my government stands by every word of the above declaration. My government will ensure that there is complete freedom of faith and that everyone has the undeniable right to retain or adopt the religion of his or her choice without coercion or undue influence. My government will not allow any religious group, belonging to the majority or the minority, to incite hatred against others, overtly or covertly. Mine will be a government that gives equal respect to all religions."

A 'tweet' is hardly the vehicle for a word of honour but if the prime minister tweets a word of honour, the word becomes more important than its vehicle. On World Press Freedom Day, last May, Modi tweeted, "Our unwavering support towards a free and vibrant press, which is vital in a democracy."

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Both these - guaranteeing freedom of faith and freedom of speech - are our prime minister's words of honour. They are words of honour in the highest Jaipal Singh sense of the term. Our prime minister knows more than anyone else that many things have happened, deeply troubling and shameful, that have belied his words of honour. Is it too late, even futile, to say, like the Munda leader did to Nehru, "...and yet I take Prime Minister Narendra Modi at his word"? His word of honour needs to be recognized for what it is. That, in his own words, is 'vital in a democracy'.

If not in the Jaipal Singh-Nehru sense of honour, for Nehru is outside his mind's chemistry, then in Sardar Patel's sense of honour, can our prime minister be mindful of the moral vacuity of a 'breach of faith'? And can he reflect on Tulsidas's lines: "...  prana jahu baru bachanu na jayi"?

The author teaches at Ashoka University

RAILWAYS

ASIAN AGE, JUL 7, 2017Railways to offer options on senior citizen fare concession

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Railways is exploring ways to reduce the Rs 1,300 crore subsidy burden in the senior citizen category.

 The new system will be operationalised shortly after upgrading the ticketing software.

New Delhi: Now senior citizens will have the option to avail either the full concession provided to them on rail tickets or half of it. The Railways is exploring ways to reduce the Rs 1,300 crore subsidy burden in the senior citizen category.

The new system will be operationalised shortly after upgrading the ticketing software. The Railways bears 43 per cent of the cost of train fare even as the state-run transporter incurs a loss of about Rs 30,000 crore a year in subsidising passenger fares out of which Rs 1,600 crore is for concessional fares.

Though there are many categories of passengers including sportspersons and differently-abled persons who avail concessions, the major beneficiaries are in the senior citizen segment.

The total amount of concessions given in the senior citizen category is about Rs 1,300 crore a year, said a senior Railway Ministry official. At present, male senior citizens get 40 per cent while women get 50 per cent concession on the total fare.

Earlier, the Railways had given all senior citizens the option of either availing the full concession or foregoing it altogether while booking tickets. Now a senior citizen will be asked whether he or she wants to avail 50 per cent or 100 per cent concession while booking tickets, the official said.

Recently, a passenger travelling from Jammu to New Delhi saw the message written on his ticket about the 43 per cent subsidy borne by the Railways.

He then decided to forego the subsidy and sent a cheque of Rs 950 to the Indian Railways Catering and Tourism Corporation (IRCTC) for a similar train journey undertaken by him and his wife on the Jammu Rajdhani.

He sent the cheque along with a letter addressing the railway minister stating that "he will never avail such financial benefits in future".

However, the national transporter had to return the cheque as there was no provision to accept such an offer. Railways spokesperson Anil Saxena also clarified that there is no move to appeal to general passengers to forego subsidy in passenger fares on the lines of the 'Give It Up' campaign targeted at LPG consumers.

The Railways recovers only 57 per cent of the expenses incurred for passenger

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transportation through sale of tickets of all classes. 

TAXATION

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ECONOMIC TIMES, JUL 3, 2017Centre deploys 200 top finance ministry officials to counter GST mispropaganda

NEW DELHI: The finance ministry apart from working on the smooth implementation of the GST is doing an important task — analysing what is written in national and international media on the GST and responding to them — especially to what they see as misinformation or mispropaganda.

Over 200 top officials at the central level are looking at only tackling the communication and information dissemination part of GST. They have reviewed articles, opinion pieces, cartoon strips, popular social media forwards that have appeared over the last few months in the run up to the GST launch.

“This is the first time, we are not only implementing the tax but also proactively monitoring the response every day. Top most officials, experts at finance are dealing with how people’s doubts should be addressed,” an official said, adding that the Centre has identified at least 9 big points of mispropaganda as it calls them which are being countered by the government in its training sessions.

“The most common panic technique is that GST will increase the number of arrests which is a blatant lie as it will happen only to tax evaders after investigation. If the company’s turnover is more than `100 cr and if the owner has not paid the 5% duty, anybody in the world will agree that he needs to penalised. Then there is this thing about the need for internet all the time for GST to function. You need internet facility two times in a month for 10 minutes to submit the returns and for tax payment,” an official said.

The analysis has also picked up allegations of media which they see as churlish. “Some have said GST is such a sophisticated tax that it needs consultants and cannot be handled by traditional firms. We know for sure that even small firms have consultants now. Individuals hire them for Income tax too.”

All the 50,000 officials trained in nuances of GST have been asked to talk to people, clarify doubts. This time all ads given to newspapers, the videos made to educate people online and even the tweets posted - everything was done after studying feedback. Officials have been asked to reply to tweets as and when they are received to clarify the doubts of people and more so to counter misinformation.

The work done by these officials also concludes that the international media has been more supportive of the step and is curious as to how the country with federal structure is taking it forward. “The international media largely is watching keenly on how India will implement it. Our analysis of international media reports says the feeling is largely mixed. The reports from international investors has been largely positive. Some reports abroad have correctly said that the GST is a recipe made from 29 different recipes and it is bound to have the best

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of everything,” an official said adding that it took the Indian media a little while to get the nuances of the GST right.

“There is still a lot more even journalists need to do with respect to GST. But as we go through the reports that have appeared over the years, we see that this is first time States have reposed so much faith in the centre.”

Of the regional media, experts who have looked at the articles coming out, the analysis has said that reports in Maharashtra, Tamil Nadu, Kerala, Bengal were highly critical in the run up to the GST till March. “Now the criticism is more to do with the alleged unpreparedness of the government which will be proved wrong.”

Guidance notes are being sent to specific sectors based on reports in media about how they are implementing GST.

These officials, mostly from the finance ministry, have also looked at media reports which appeared during the UPA regime about GST. “Those were mainly political in nature. Now, at least most in print present a fair view. This is the first time a very structured communication flow has been adopted and it is working. Since there is no show of panic from the government’s end, there is a lot of confidence in the states too.”

The Centre has also noticed that one point most media writeups have missed is the absence of lobbying in the introduction of GST.

“Since all decisions were made in the GST Council with representation from all states there was no question of any official speaking on behalf of any one sector that might have urged him to. This could have been possible in earlier format of meetings but not this time,” the official said.

Officials in charge of communicating GST to the press said they were focusing on the fact that GST removes the cascading effect of taxes and that it is an incremental reform.

“This is the first time so many of us are engaged in communication. So many of us have been asked to go on TV and social media to take on questions,” an official said.

“The feeling that SMEs are going to be negatively impacted by GST is a myth being spread by some who haven’t understood the tax. We are talking to groups of people and holding sessions to sort out that confusion, the official said.

 

ECONOMIC TIMES, JUL 3, 2017New task for 2015 batch IAS officers: Focus and learn GST

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NEW DELHI: The government has asked 175 Indian Administrative Service officers of the 2015 batch beginning their three-month deputation to the Centre from Monday to focus their energy on learning about the Goods and Services Tax and helping in its smooth implementation.

PM Narendra Modi is expected to give this message to these IAS officers when he meets and addresses them on Monday, officials said.

The first three months of GST implementation are expected to be challenging and these IAS officers, designated as assistant secretaries, will witness this period of transition during their stint with various departments. They have been posted to 58 overnment departments from Monday.

The GST learning could come in handy when they join their respective state cadres, a senior official said.

“Assistant Secretaries during the deputation period will be given an intensive exposure on GST with particular reference to SAKSHAM/IT (CBEC system), constitutional amendments, rules and regulations, working of GST Council, GSTN and coordination between Centre and States,” the Department of Personnel and Training said in a June 29 order.

The order further said that special sessions will be organised by the Department of Revenue in coordination with DoPT for this purpose. “Each ministry is already taking action for smooth implementation of GST in their area of work…the assistant secretaries must be fully involved in these activities of the department,” it said.

Digital transactions and moving towards cashless economy will be the other areas of emphasis for the assistant secretaries. The Department of Financial Services, IT ministry and the National Payments Corporation of India have been asked to hold special sessions for these IAS officers on United Payments Interface, Aadhaar Enabled Payment Systems and BHIM app.

The DoPT order said that work should be allocated to the assistant secretaries in a manner so as to ensure “they are fully engaged throughout the deputation period and develop a work culture to complete assigned tasks in time”.

TRIBUNE, JUL 3, 2017GST right and wrongsFocus remains on the ‘achievement’ part

THAT the GST is a game-changer is not in doubt. All parties and states, barring J&K, have accepted it. The midnight GST launch speeches would have made greater sense had the government been more open to suggestions made by protesters and tried to address their apprehensions. While the government is insisting on the merits of the GST, turning a deaf ear

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toward those expressing reservations and fears, opposition parties have chosen to side with the protesters. There was an unseemly rush to market the moment. Few disapprove of the concept of GST; it is the changes, digressions and unplanned push that have caused the divide. The BJP focus is on the GST as an “achievement”.

The disconnect with reality is clear but unsurprising. GST hassles that people, particularly those in the unorganised sector, are set to face are more than — what the Prime Minister called — an adjustment of the eyes to the new spectacles. Lack of preparedness in the switchover is self-evident. Tax rates kept changing till the eleventh hour — a cut in the tax on fertilisers and tractor parts and a 10 per cent customs duty on mobile handsets. The tax rates are unreasonably high — 5, 12, 18 and 28 per cent and a cess. Canada has a single 5 per cent GST rate, Singapore 7 per cent and Malaysia 6 per cent. Here we have multiple tax slabs, multiple registrations and multiple filing of tax returns. The supposed goal was to simplify the tax regime.  

Finance Minister Arun Jaitley and Revenue Secretary Hasmukh Adhia have claimed the GST will push GDP growth by 1-1.5 per cent. This has been disputed by one of their own: Niti Aayog member Bibek Debroy. The claim is not evidence-based. Rather the opposite seems more plausible. The cost of compliance, procedural headaches, unleashing of tax inspectors to ensure tax benefits are passed on to consumers and resultant litigation may add to the unease of doing business. Central and state-level politicians on the GST Council have ganged up to extract more from the taxpayers to fund their politics of personal glorification, loan waiver and  freebies. This is despite the GST widening the tax base and tax evasion becoming difficult. The unstated government policy is: spend more, tax more.

HINDUSTAN TIMES, JUL 3, 2017GST rollout could be a template for future of cooperative federalism

The GST council can now serve as a template for reforming other such institutions of cooperative federalism, starting with the inter-state council

Rana Kapoor 

The Goods and Services Tax (GST), which came into effect from July 1, is the most significant

economic reform since liberalisation commenced in 1991, and envisages ‘a one Economic India’

which will lead to a more efficient and productive economy. It will also add 2.5-3% to GDP over

the medium term.

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The GST implementation will lead to several macroeconomic gains. The transition to the new

framework may result in some short term pain, but the commensurate gains are going to be

disproportionately higher, and it’s a matter of time before even small and medium enterprises

start imbibing these advantages.

Riding on this key reform, GDP growth in FY18 is expected to rise to 7.4% (vs 7.1% in FY17),

led by consumption, public sector-led capex and export growth. Further, as average inflation is

likely to move towards 4% levels this fiscal, the RBI might opt for a 25 bps rate cut in the policy

review in August.

The GST is expected to reduce manufacturing costs by 10-15% as logistics costs will decline. It

will also boost productivity through efficient resource allocation and greater tax compliance.

Moreover, the GST will lead to enhanced transparency and higher foreign direct investment

(FDI).

Mapping the GST rates to the consumer price index (CPI) basket indicates disinflation of 25-50

bps, which is likely to transmit over the medium term, even though in the short term, the

disinflationary impact is unlikely to play out on account of higher compliance costs.

The GST roll out could be a template for the future of cooperative federalism. The GST council

can now serve as a template for reforming other such institutions of cooperative federalism,

starting with the inter-state council.

Tax integration under the GST will result in supply chain restructuring to induce changes in

India’s trade flows and provide a massive fillip to state’s tax collections as services will be

brought under their taxation ambit. By the very construct of the GST, states will see a 1.8x

increase in their service tax collections.

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Our in-house simulation of how tax collections would adjust between the Centre and states post

GST; basis a redistribution of tax powers and revenues indicate an increase in annual tax

revenues of close to Rs 30,000 crore for states as an aggregate.

Further, as the GST shifts levy of sales tax from point of origin to point of consumption we will

see negative implications for manufacturing states while positively affecting the consumption

states. Similarly, with states now levying services tax under the GST, states with high share of

services in state gross domestic product (SGDP) will stand to benefit.

Currently, it takes an average of 241 hours per year to pay taxes in India – compared to 110 in

Britain and 175 in the United States. The most telling impact of the GST will be in terms of

improving the ease of doing business – especially in terms of making ‘paying taxes’ easier.

Riding on the achievements, progressive reforms and strategic initiatives of the last three years

the economy is well and truly in ‘take off’ mode and the GST implementation will fuel this

growth trajectory.

Rana Kapoor is MD and CEO, YES BANK

The views expressed are personal

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