Daily Current Affairs : 5th February 2022

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Daily Current Affairs for UPSC CSE

Topics Covered

  1. Disinvestment
  2. Sanctuary
  3. Private Members Bill
  4. Law Commission of India

1 . Disinvestment

Context : The modest disinvestment receipts target of ₹65,000 crore in the Budget for 2022-23, the lowest in six years, is not a reflection of the government slowing down on privatisation, but is based on “realism” and a focus on smooth execution of transactions instead of chasing a high number, a top Finance Ministry official said.

What is disinvestment?

  • The Union government invests in several public sector undertakings (PSUs) such as Bharat Petroleum, Delhi Metro Rail Corporation etc.
  • Since it is the majority shareholder (meaning that it owns more than 51% of the shares), the Centre can raise money through the liquidation of its shareholding in these PSUs.
  • Such asset sales can either reduce the government’s share — like when it attempted to do with the public listing of Life Insurance Corporation in 2020 — or it can also transfer the ownership of the firm altogether to the highest bidder — as it did with Bharat Aluminium Company, which was sold to the Vedanta group in 2001.

Purpose

Broadly speaking there are two main motivations behind disinvesting in PSUs.

  • One is to improve the overall efficiency of their functioning. As PSUs, they are managed by the government on a daily basis. But in doing so, there are chances of political considerations overshadowing economic and corporate interests. This is especially true when the PSU transacts with the government — for example when it sells its products and services to the government, the pricing may be influenced by factors other than market factors. By disinvesting (or reducing the government stake), an attempt is made to make such a PSU more efficient as it would not be accountable to people and entities other than the government. The underlying hope is that private or corporate ownership will result in more efficient management.
  • The second factor is the government’s need to plug its deficit. The government is unable to meet its expenditures just from its tax revenues. With the proceeds of these sales, the government can reduce its debt liabilities and raise money for investments in other parts of the economy — such as building infrastructure in the form of new roads and bridges or increased spending on providing welfare to the poor and needy in the country.

How are these revenues generated?

  • All PSUs work under different departments and ministries within the government. However, the Department of Investment and Public Asset Management (DIPAM) under the Ministry of Finance is tasked with managing the Centre’s investments in the PSUs. Sale of the Centre’s assets falls within the mandate of DIPAM.
  • Each year, the Finance Minister sets a “disinvestment target”. Accordingly, bids are invited, or as in the case of LIC, public offerings are made and the PSU is privatised partially or fully. Source: CGA, Ministry of Finance

National Investment Fund

  • Government had constituted the National Investment Fund (NIF) in November, 2005 into which the proceeds from disinvestment of Central Public Sector Enterprises were to be channelized.
  • The corpus of NIF was to be of a permanent nature and NIF was to be professionally managed to provide sustainable returns to the Government, without depleting the corpus.
  • Selected Public Sector Mutual Funds, namely UTI Asset Management Company Ltd., SBI Funds Management Private Ltd. and LIC Mutual Fund Asset Management Company Ltd. were entrusted with the management of the NIF corpus.

Use of NIF Funds

In order to align the NIF with the disinvestment Policy, Government decided (17th January 2013) that the disinvestment proceeds, with effect from the fiscal year 2013-14, will be credited to the existing NIF which is a ‘Public Account’ under the Government Accounts and the funds would remain there until withdrawn/invested for the approved purposes. It was also simultaneously decided that the NIF would be utilized for the following purposes:

  1. Subscribing to the shares being issued by the CPSE on rights basis so as to ensure that 51% ownership of the Government in CPSEs is not diluted.
  2. Preferential allotment of shares of the CPSE to promoters as per SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 so that Government shareholding does not go down below 51% in all cases where the CPSEs desire to raise fresh equity to meet their Capex programme.
  3. Recapitalization of public sector banks and public sector insurance companies so as to strengthen them by further capital infusion towards achieving the Basel III norms.

The Government further approved inclusion of the following purposes also, to be financed from the NIF (21st February, 2013).

  1. Investment by Government in RRBs/IIFCL/NABARD/Exim Bank.
  2. Equity infusion in various Metro projects.
  3. Investment in Bhartiya Nabhikiya Vidyut Nigam Limited and Uranium Corporation of India Ltd.
  4. Investment in Indian Railways towards capital expenditure.

2 . Wildlife Sanctuary

Context : Neighbours of a golden langur habitat in western Assam’s Bongaigaon district have opposed a move by the State government to upgrade it to a wildlife sanctuary.

What is Wildlife Sanctuary

  • Any area other than area comprised with any reserve forest or the territorial waters can be notified by the State Government to constitute as a sanctuary if such area is of adequate ecological, faunal, floral, geomorphological, natural. or zoological significance, for the purpose of protecting, propagating or developing wildlife or its environment.
  • Some restricted human activities are allowed inside the Sanctuary area details of which are given in CHAPTER IV, WPA 1972.
  • A very limited human activity is allowed in a wildlife sanctuary, the hunting of animals is completely prohibited also the trees cannot be cut down for agriculture or any other purpose. It does not have any clearly marked boundaries to restrict the people from entering into the sanctuary. People can roam inside a wildlife sanctuary related to their research, educational or recreational purposes. The international Union for Conservation of Nature (IUCN), and its World Commission on Protected Areas has defined wildlife sanctuary as its Category IV type of protected areas.
  • There are 553 existing wildlife sanctuaries in India covering an area of  119776.00 km2, which is 3.64 % of the geographical area of the country (National Wildlife Database, December, 2019).

Declaration of Sanctuary

  • Section 26A of the Wildlife Protection Act defines the declaration of the sanctuary.
  • It says that the State Government may declare its intention to constitute an area which consists of adequate ecological, flora, fauna, natural or zoological significance for the protection of wildlife. ‘Wildlife’ is defined by the State Government through notification.
  • There is no need to pass legislation by the State Assembly to declare a wildlife sanctuary.

About Golden Langur

  • Kakoijana Reserve Forest is one of the better-known homes of the golden langur (Trachypithecus geei) found only in Assam and Bhutan and a Schedule-I species under the Wildlife Protection Act of 1972. It is listed as among the world’s 25 most endangered primates.

Background

  • The Assam Forest Department had in January issued a preliminary notification for converting the 19.85 sq. km. patch of forest into the Kajoijana Bamuni Hill Wildlife Sanctuary.
  • In a memorandum to Bongaigaon Deputy Commissioner M.S. Lakshmi Priya, the villagers of Bogoriguri Rabhapara said they have been protecting and conserving the flora and fThe memorandum submitted on February 2 was on behalf of 34 villages around Kakoijana inhabited by the Koch-Rajbongshi, Boro, Garo, Rabha and Gorkha communities.
  • As primary stakeholders, the villagers demanded that the “conventional idea of wildlife sanctuary” be dropped and the reserve forest converted into a community forest resource “using Forest Rights Act, 2006, to ensure community co-managed system of participation for sustainable conservation”.
  • “We consider some of the areas inside the forest as sacred and its sanctity should be maintained. The joint forest management committee in the surrounding villages are doing a good job in protecting the forest and have an intricate relation with the forest,” the memorandum said.
  • The villagers pointed out that the conservation efforts of the locals had helped the authorities concerned to restore the forest canopy from less than 5% to more than 70%, and the golden langur population from less than 100 to more than 600 over almost three decades.

3 . Private Members Bill

Context : Rajya Sabha Deputy Chairman Harivansh said on Friday that there have been number of instances in the past when a private member’s Bill to amend the Preamble to the Constitution has been introduced in both the Houses of Parliament and that its legislative competence is decided by Council and not the Chair.

About the News

  • Mr. Harivansh stated that during the last session, on December 3, member Manoj Kumar Jha had opposed the motion moved by K.J. Alphons to introduce a Bill on the subject. Mr. Jha had argued that Preamble is part of the basic structure of the Constitution and the Bill may not be allowed for introduction.
  • Mr. Alphons had moved a Bill to replace the word “socialist” with “equitable” in the Preamble. He had said the word carried political connotations.
  • Following this, Congress leader Anand Sharma said the Preamble cannot be changed. “I would urge the member concerned that in larger interest of the country where questions are being raised about the integrity of our commitment to the Indian Constitution, this should not be allowed.”
  • At which, Biju Janta Dal member Amar Patnaik interjected to say: “the two words — socialist and secular — were added to the Preamble of the Constitution by the 42nd amendment, so it can be changed.”

About Private Members Bill

  • A Member of Parliament (MP) who is not a Minister in the Union Cabinet is called a Private Member. Bills introduced by such members are called Private Member’s Bills.
  • A Private Members Bill can be introduced in either the Lok Sabha or Rajya Sabha. Bills introduced by ministers are called Government Bills.
  • There are no restrictions as to what a Private Members Bill should be about. The scope of a Private Members Bill is same as that of a Government Bill. These bills can deal with any issue and can also be a Constitutional Amendment Bill.
  • Unlike a Government Bill, a Private Members Bill is not discussed by the Council of Ministers internally.
  • The member has to provide a one-month notice along with a copy of the ‘Statement of Object and Reasons’. Through the statement, the member is required to elaborate on the bill.
  • In case there are multiple Private Members Bill being proposed at the same time, a ballot system is used to determine the sequence of bills for introduction.
  • There is also a Parliamentary Committee on Private Member’s Bills and Resolutions that goes through all Private Members Bill . The committee classifies these Bills based on their urgency and importance, which in turn, determines which would be discussed first.
  • A successful passing of PMB is perceived by many as incompetence on part of the government and intrusion into the respective ministry’s domain.
  • Governments in the past have also at times cut short the path of PMBs. If such a bill is seen getting support in Parliament, the government requests the MP to withdraw it and promises to introduce it as a Government Bill instead. The member who had tabled The Rights of Transgender Persons Bill, 2014 was requested by the government to withdraw it.

4 . Law Commission of India

Context : The new Law Commission could take up the issue of Uniform Civil Code, Law Minister Kiren Rijiju has informed BJP member Nishikant Dubey in a letter. During the winter session of Parliament last year, on December 1, Mr. Dubey had raised the issue of a Uniform Civil Code during the Zero Hour in the Lok Sabha.

Background

  • Since the third decade of the nineteenth century, Law Commissions were constituted by the Government from time to time and were empowered to recommend legislative reforms with a view to clarify, consolidate and codify particular branches of law where the Government felt the necessity for it.
  • The first such Commission was established in 1834 under the Charter Act of 1833 under the Chairmanship of Lord Macaulay which recommended codification of the Penal Code, the Criminal Procedure Code and a few other matters.
  • Thereafter, the second, third and fourth Law Commissions were constituted in 1853, 1861 and 1879 respectively which, during a span of fifty years contributed a great deal to enrich the Indian Statute Book with a large variety of legislations on the pattern of the then prevailing English Laws adapted to Indian conditions. 
  • The Indian Code of Civil Procedure, the Indian Contract Act, the Indian Evidence Act, the Transfer of Property Act. etc. are products of the labour of the first four Law Commissions.

Post Independence

  • Though the Constitution stipulated the continuation of pre-Constitution Laws (Article 372) till they are amended or repealed, there had been demands in Parliament and outside for establishing a Central Law Commission to recommend revision and updating of the inherited laws to serve the changing needs of the country.
  • The Government of India reacted favourably and established the First Law Commission of Independent India in 1955 with the then Attorney-General of India, Mr. M. C. Setalvad, as its Chairman.
  • Since then twenty one more Law Commissions have been appointed, each with a three-year term and with different terms of reference.

About Law Commission

  • Law Commission of India is an executive body established by an order of the Government of India. Its major function is to work for legal reform.
  • Its membership primarily comprises legal experts, who are entrusted a mandate by the Government.
  • The Commission is established for a fixed tenure and works as an advisory body to the Ministry of Law and Justice
  • The Reports of the Law Commission are considered by the Ministry of Law in consultation with the concerned administrative Ministries and are submitted to Parliament from time to time. They are cited in Courts, in academic and public discourses and are acted upon by concerned Government Departments depending on the Government’s recommendations.
  • Former Supreme Court judge Balbir Singh Chauhan was appointed Chairman of the 21st Law Commission. The 21st commission, under Justice B.S. Chauhan (retd), had submitted reports and working papers on key issues such as simultaneous polls to the Lok Sabha and the Assemblies and a uniform civil code

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